1.1                          A bill for an act 
  1.2             relating to state government; making changes to public 
  1.3             assistance programs, health care programs, long-term 
  1.4             care, continuing care for persons with disabilities, 
  1.5             occupational licenses, children services, estate 
  1.6             recovery provisions for medical assistance, adult 
  1.7             mental health and alternative programs for offenders 
  1.8             with mental illness; changing health department 
  1.9             provisions; transferring programs and funding from the 
  1.10            department of children, families, and learning; 
  1.11            requiring certain correctional institutions to permit 
  1.12            multiple occupancy of cells; providing juvenile court 
  1.13            jurisdiction for juveniles alleged to have committed 
  1.14            traffic offenses; authorizing the state public 
  1.15            defender to investigate decisions of the department of 
  1.16            corrections; authorizing the state public defender to 
  1.17            recommend correctional agencies to take corrective 
  1.18            actions upon complaints; requiring defendants with 180 
  1.19            days or less remaining on terms of imprisonment to 
  1.20            serve those remaining terms in local correctional 
  1.21            facilities; requiring law enforcement agencies to 
  1.22            disclose certain information to community crime 
  1.23            prevention groups; making forecast adjustments; 
  1.24            appropriating money; amending Minnesota Statutes 2002, 
  1.25            sections 13.461, by adding a subdivision; 13.69, 
  1.26            subdivision 1; 62E.06, subdivision 1; 62J.17, 
  1.27            subdivision 2; 62J.23, by adding a subdivision; 
  1.28            62J.692, subdivisions 1, 2, 3, 4, 5, 7, 8; 62J.694, by 
  1.29            adding a subdivision; 62L.05, subdivision 4; 62Q.19, 
  1.30            subdivision 2; 116J.70, subdivision 2a; 119B.011, 
  1.31            subdivisions 5, 6, 15, 19, by adding a subdivision; 
  1.32            119B.02, subdivision 1; 119B.03, subdivisions 4, 9; 
  1.33            119B.05, subdivision 1; 119B.09, subdivision 7; 
  1.34            119B.11, subdivision 2a; 119B.12, subdivision 2; 
  1.35            119B.13, subdivisions 2, 6, by adding a subdivision; 
  1.36            119B.19, subdivision 7; 119B.21, subdivision 11; 
  1.37            124D.23, subdivision 1; 144.1222, by adding a 
  1.38            subdivision; 144.125; 144.128; 144.1488, subdivision 
  1.39            4; 144.1491, subdivision 1; 144.1502, subdivision 4; 
  1.40            144.335, subdivision 1; 144.35; 144.395, by adding a 
  1.41            subdivision; 144.396, subdivisions 7, 11, 12; 144.414, 
  1.42            subdivision 3; 144.551, subdivision 1; 144.99, 
  1.43            subdivision 1; 144A.071, subdivision 4c, as amended; 
  1.44            144A.4605, subdivision 4; 144E.29; 144E.50, 
  1.45            subdivision 5; 145.412, by adding a subdivision; 
  1.46            147A.08; 148.5194, subdivisions 1, 2, 3, by adding a 
  2.1             subdivision; 148.6445, subdivision 7; 148C.01, 
  2.2             subdivisions 2, 12, by adding subdivisions; 148C.03, 
  2.3             subdivision 1; 148C.0351, subdivision 1, by adding a 
  2.4             subdivision; 148C.04; 148C.05, subdivision 1, by 
  2.5             adding subdivisions; 148C.07; 148C.10, subdivisions 1, 
  2.6             2; 148C.11; 150A.05, subdivision 2; 151.47, 
  2.7             subdivision 1; 153A.17; 171.06, subdivision 3; 171.07, 
  2.8             by adding a subdivision; 243.53, subdivision 1; 
  2.9             245.4874; 245.493, subdivision 1a; 245A.035, 
  2.10            subdivision 3; 245A.04, subdivisions 3b, 3d; 245A.10; 
  2.11            245A.11, subdivision 2a; 252.27, subdivision 2a; 
  2.12            252.32, subdivisions 1, 1a, 3, 3c; 253B.05, by adding 
  2.13            a subdivision; 256.01, subdivision 2; 256.012; 
  2.14            256.046, subdivision 1; 256.0471, subdivision 1; 
  2.15            256.476, subdivisions 1, 3, 4, 5, 11; 256.955, 
  2.16            subdivision 2a; 256.9657, subdivisions 1, 4, by adding 
  2.17            a subdivision; 256.9685, by adding a subdivision; 
  2.18            256.969, subdivisions 2b, 3a; 256.975, by adding a 
  2.19            subdivision; 256.98, subdivision 8; 256.984, 
  2.20            subdivision 1; 256B.056, subdivisions 1a, 1c, 6; 
  2.21            256B.057, subdivisions 1, 1b, 2, 3b, 9, 10; 256B.0595, 
  2.22            subdivisions 1, 2, by adding subdivisions; 256B.061; 
  2.23            256B.0621, subdivision 4; 256B.0623, subdivisions 2, 
  2.24            4, 5, 6, 8; 256B.0625, subdivisions 9, 13, 17, 19c, by 
  2.25            adding subdivisions; 256B.0627, subdivisions 1, 4, 9; 
  2.26            256B.0635, subdivisions 1, 2; 256B.064, subdivision 2; 
  2.27            256B.0911, subdivision 4d; 256B.0913, subdivisions 2, 
  2.28            4, 5, 6, 7, 8, 10, 12; 256B.0915, subdivision 3, by 
  2.29            adding a subdivision; 256B.092, subdivision 5, by 
  2.30            adding a subdivision; 256B.0945, subdivisions 2, 4; 
  2.31            256B.15, subdivisions 1, 1a, 2, 3, 4, by adding 
  2.32            subdivisions; 256B.19, by adding a subdivision; 
  2.33            256B.195, subdivisions 3, 5; 256B.32, subdivision 1; 
  2.34            256B.431, subdivisions 2r, 32, by adding subdivisions; 
  2.35            256B.434, subdivision 4; 256B.437, subdivisions 2, 6; 
  2.36            256B.47, subdivision 2; 256B.5012, by adding a 
  2.37            subdivision; 256B.5013, by adding a subdivision; 
  2.38            256B.69, subdivisions 2, 4, 5, 5a, 5c, 5g, 6a, 6b, 8, 
  2.39            by adding a subdivision; 256B.75; 256B.76; 256B.761; 
  2.40            256B.82; 256D.03, subdivisions 3, 3a, 4; 256D.053, 
  2.41            subdivision 1; 256I.02; 256I.04, subdivision 3; 
  2.42            256I.05, subdivisions 1, 1a, 7c; 256J.02, subdivision 
  2.43            2; 256J.021; 256J.08, by adding subdivisions; 256J.09, 
  2.44            subdivisions 2, 3a, 10; 256J.21, subdivision 2; 
  2.45            256J.24, subdivision 3; 256J.37, subdivision 9; 
  2.46            256J.38, subdivision 3; 256J.40; 256J.42, subdivision 
  2.47            5; 256J.425, subdivisions 2, 3, 4, 6; 256J.50, 
  2.48            subdivisions 1, 8; 256J.55, subdivision 2; 256J.56; 
  2.49            256J.751, subdivisions 2, 5; 256L.05, subdivisions 3a, 
  2.50            4; 256L.06, subdivision 3; 256L.07, subdivisions 1, 3, 
  2.51            by adding a subdivision; 256L.12, subdivision 6; 
  2.52            256L.15, subdivision 3, by adding a subdivision; 
  2.53            257.0769; 259.21, subdivision 6; 259.67, subdivisions 
  2.54            4, 7; 260B.157, subdivision 1; 260B.176, subdivision 
  2.55            2; 260B.178, subdivision 1; 260B.193, subdivision 2; 
  2.56            260B.235, subdivision 6; 260C.141, subdivision 2; 
  2.57            295.53, subdivision 1; 297I.15, subdivisions 1, 4; 
  2.58            319B.40; 326.42; 357.021, subdivisions 6, 7; 393.07, 
  2.59            subdivisions 5, 10; 514.981, subdivision 6; 518.551, 
  2.60            subdivisions 12, 13; 524.3-805; 609.105, subdivision 
  2.61            1, by adding subdivisions; 609.145, by adding a 
  2.62            subdivision; 609.2231, by adding a subdivision; Laws 
  2.63            1997, chapter 245, article 2, section 11; proposing 
  2.64            coding for new law in Minnesota Statutes, chapters 
  2.65            62J; 62Q; 97A; 119B; 144; 144A; 148C; 243; 245; 245A; 
  2.66            246; 256; 256B; 256J; 481; 514; 609; 611; 611A; 
  2.67            proposing coding for new law as Minnesota Statutes, 
  2.68            chapter 150B; repealing Minnesota Statutes 2002, 
  2.69            sections 62J.15; 62J.152; 62J.451; 62J.452; 62J.66; 
  2.70            62J.68; 119B.061; 144.126; 144.1494; 144.1495; 
  2.71            144.1496; 144.1497; 144A.071, subdivision 5; 144A.35; 
  3.1             144A.36; 144A.38; 148.5194, subdivision 3a; 148.6445, 
  3.2             subdivision 9; 148C.0351, subdivision 2; 148C.05, 
  3.3             subdivisions 2, 3, 4; 148C.06; 148C.10, subdivision 
  3.4             1a; 241.41; 241.42; 241.43; 241.44; 241.441; 241.45; 
  3.5             252.32, subdivision 2; 256.482, subdivision 8; 
  3.6             256.955, subdivision 8; 256B.0625, subdivisions 5a, 
  3.7             35, 36; 256B.0917; 256B.0945, subdivision 10; 
  3.8             256B.095; 256B.0951; 256B.0952; 256B.0953; 256B.0954; 
  3.9             256B.0955; 256B.437, subdivision 2; 256B.5013, 
  3.10            subdivision 4; 256J.08, subdivision 70; 256J.425, 
  3.11            subdivision 7; 256J.47; Laws 1997, chapter 203, 
  3.12            article 9, section 21; Laws 1998, chapter 407, article 
  3.13            4, section 63; Laws 1998, chapter 407, article 6, 
  3.14            section 111; Laws 2000, chapter 488, article 10, 
  3.15            section 28; Laws 2000, chapter 488, article 10, 
  3.16            section 29; Laws 2001, First Special Session chapter 
  3.17            3, article 1, section 16; Laws 2001, First Special 
  3.18            Session chapter 9, article 10, section 62; Laws 2001, 
  3.19            First Special Session chapter 9, article 13, section 
  3.20            24; Laws 2002, chapter 374, article 9, section 8; 
  3.21            Minnesota Rules, parts 4747.0030, subparts 25, 28, 30; 
  3.22            4747.0040, subpart 3, item A; 4747.0060, subpart 1, 
  3.23            items A, B, D; 4747.0070, subparts 4, 5; 4747.0080; 
  3.24            4747.0090; 4747.0100; 4747.0300; 4747.0400, subparts 
  3.25            2, 3; 4747.0500; 4747.0600; 4747.1000; 4747.1100, 
  3.26            subpart 3; 4747.1600; 4763.0100; 4763.0110; 4763.0125; 
  3.27            4763.0135; 4763.0140; 4763.0150; 4763.0160; 4763.0170; 
  3.28            4763.0180; 4763.0190; 4763.0205; 4763.0215; 4763.0220; 
  3.29            4763.0230; 4763.0240; 4763.0250; 9505.0324; 9505.0326; 
  3.30            9505.0327; 9505.3045; 9505.3050; 9505.3055; 9505.3060; 
  3.31            9505.3068; 9505.3070; 9505.3075; 9505.3080; 9505.3090; 
  3.32            9505.3095; 9505.3100; 9505.3105; 9505.3107; 9505.3110; 
  3.33            9505.3115; 9505.3120; 9505.3125; 9505.3130; 9505.3138; 
  3.34            9505.3139; 9505.3140; 9505.3680; 9505.3690; 9505.3700. 
  3.35  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  3.36                             ARTICLE 1
  3.37                           WELFARE REFORM
  3.38     Section 1.  Minnesota Statutes 2002, section 119B.03, 
  3.39  subdivision 4, is amended to read: 
  3.40     Subd. 4.  [FUNDING PRIORITY.] (a) First priority for child 
  3.41  care assistance under the basic sliding fee program must be 
  3.42  given to eligible non-MFIP families who do not have a high 
  3.43  school or general equivalency diploma or who need remedial and 
  3.44  basic skill courses in order to pursue employment or to pursue 
  3.45  education leading to employment and who need child care 
  3.46  assistance to participate in the education program.  Within this 
  3.47  priority, the following subpriorities must be used: 
  3.48     (1) child care needs of minor parents; 
  3.49     (2) child care needs of parents under 21 years of age; and 
  3.50     (3) child care needs of other parents within the priority 
  3.51  group described in this paragraph. 
  3.52     (b) Second priority must be given to parents who have 
  4.1   completed their MFIP or work first transition year, or parents 
  4.2   who are no longer receiving or eligible for diversionary work 
  4.3   program supports.  
  4.4      (c) Third priority must be given to families who are 
  4.5   eligible for portable basic sliding fee assistance through the 
  4.6   portability pool under subdivision 9. 
  4.7      Sec. 2.  Minnesota Statutes 2002, section 256.984, 
  4.8   subdivision 1, is amended to read: 
  4.9      Subdivision 1.  [DECLARATION.] Every application for public 
  4.10  assistance under this chapter and/or or chapters 256B, 256D, 
  4.11  256K, MFIP program 256J, and food stamps or food support under 
  4.12  chapter 393 shall be in writing or reduced to writing as 
  4.13  prescribed by the state agency and shall contain the following 
  4.14  declaration which shall be signed by the applicant: 
  4.15     "I declare under the penalties of perjury that this 
  4.16     application has been examined by me and to the best of my 
  4.17     knowledge is a true and correct statement of every material 
  4.18     point.  I understand that a person convicted of perjury may 
  4.19     be sentenced to imprisonment of not more than five years or 
  4.20     to payment of a fine of not more than $10,000, or both." 
  4.21     Sec. 3.  Minnesota Statutes 2002, section 256D.053, 
  4.22  subdivision 1, is amended to read: 
  4.23     Subdivision 1.  [PROGRAM ESTABLISHED.] The Minnesota food 
  4.24  assistance program is established to provide food assistance to 
  4.25  legal noncitizens residing in this state who are ineligible to 
  4.26  participate in the federal Food Stamp Program solely due to the 
  4.27  provisions of section 402 or 403 of Public Law Number 104-193, 
  4.28  as authorized by Title VII of the 1997 Emergency Supplemental 
  4.29  Appropriations Act, Public Law Number 105-18, and as amended by 
  4.30  Public Law Number 105-185. 
  4.31     Beginning July 1, 2003, the Minnesota food assistance 
  4.32  program is limited to those noncitizens described in this 
  4.33  subdivision who are 50 years of age or older. 
  4.34     Sec. 4.  Minnesota Statutes 2002, section 256J.02, 
  4.35  subdivision 2, is amended to read: 
  4.36     Subd. 2.  [USE OF MONEY.] State money appropriated for 
  5.1   purposes of this section and TANF block grant money must be used 
  5.2   for: 
  5.3      (1) financial assistance to or on behalf of any minor child 
  5.4   who is a resident of this state under section 256J.12; 
  5.5      (2) employment and training services under this chapter or 
  5.6   chapter 256K; 
  5.7      (3) emergency financial assistance and services under 
  5.8   section 256J.48; 
  5.9      (4) diversionary assistance under section 256J.47; 
  5.10     (5) the health care and human services training and 
  5.11  retention program under chapter 116L, for costs associated with 
  5.12  families with children with incomes below 200 percent of the 
  5.13  federal poverty guidelines; 
  5.14     (6) (5) the pathways program under section 116L.04, 
  5.15  subdivision 1a; 
  5.16     (7) (6) welfare-to-work extended employment services for 
  5.17  MFIP participants with severe impairment to employment as 
  5.18  defined in section 268A.15, subdivision 1a; 
  5.19     (8) (7) the family homeless prevention and assistance 
  5.20  program under section 462A.204; 
  5.21     (9) (8) the rent assistance for family stabilization 
  5.22  demonstration project under section 462A.205; 
  5.23     (10) (9) welfare to work transportation authorized under 
  5.24  Public Law Number 105-178; 
  5.25     (11) (10) reimbursements for the federal share of child 
  5.26  support collections passed through to the custodial parent; 
  5.27     (12) (11) reimbursements for the working family credit 
  5.28  under section 290.0671; 
  5.29     (13) (12) intensive ESL grants under Laws 2000, chapter 
  5.30  489, article 1; 
  5.31     (14) (13) transitional housing programs under section 
  5.32  119A.43; 
  5.33     (15) (14) programs and pilot projects under chapter 256K; 
  5.34  and 
  5.35     (16) (15) program administration under this chapter; and 
  5.36     (16) the diversionary work program under section 256J.95. 
  6.1      Sec. 5.  Minnesota Statutes 2002, section 256J.021, is 
  6.2   amended to read: 
  6.3      256J.021 [SEPARATE STATE PROGRAM FOR USE OF STATE MONEY.] 
  6.4      Beginning October 1, 2001, and each year thereafter, the 
  6.5   commissioner of human services must treat financial assistance 
  6.6   MFIP expenditures made to or on behalf of any minor child under 
  6.7   section 256J.02, subdivision 2, clause (1), who is a resident of 
  6.8   this state under section 256J.12, and who is part of a 
  6.9   two-parent eligible household as expenditures under a separately 
  6.10  funded state program and report those expenditures to the 
  6.11  federal Department of Health and Human Services as separate 
  6.12  state program expenditures under Code of Federal Regulations, 
  6.13  title 45, section 263.5. 
  6.14     Sec. 6.  Minnesota Statutes 2002, section 256J.08, is 
  6.15  amended by adding a subdivision to read: 
  6.16     Subd. 24b.  [DIVERSIONARY WORK PROGRAM OR DWP.] 
  6.17  "Diversionary work program" or "DWP" has the meaning given in 
  6.18  section 256J.95. 
  6.19     Sec. 7.  Minnesota Statutes 2002, section 256J.08, is 
  6.20  amended by adding a subdivision to read: 
  6.21     Subd. 73a.  [QUALIFIED PROFESSIONAL.] (a) For physical 
  6.22  illness, injury, or incapacity, a "qualified professional" means 
  6.23  a licensed physician, a physician's assistant, a nurse 
  6.24  practitioner, or in the case of spinal subluxation, a licensed 
  6.25  chiropractor. 
  6.26     (b) For mental retardation and intelligence testing, a 
  6.27  "qualified professional" means an individual qualified by 
  6.28  training and experience to administer the tests necessary to 
  6.29  make determinations, such as tests of intellectual functioning, 
  6.30  assessments of adaptive behavior, adaptive skills, and 
  6.31  developmental functioning.  These professionals include licensed 
  6.32  psychologists, certified school psychologists, or certified 
  6.33  psychometrists working under the supervision of a licensed 
  6.34  psychologist. 
  6.35     (c) For learning disabilities, a "qualified professional" 
  6.36  means a licensed psychologist or school psychologist with 
  7.1   experience determining learning disabilities.  
  7.2      (d) For mental health, a "qualified professional" means a 
  7.3   licensed physician or a qualified mental health professional.  A 
  7.4   "qualified mental health professional" means: 
  7.5      (1) for children, in psychiatric nursing, a registered 
  7.6   nurse who is licensed under sections 148.171 to 148.285, and who 
  7.7   is certified as a clinical specialist in child and adolescent 
  7.8   psychiatric or mental health nursing by a national nurse 
  7.9   certification organization or who has a master's degree in 
  7.10  nursing or one of the behavioral sciences or related fields from 
  7.11  an accredited college or university or its equivalent, with at 
  7.12  least 4,000 hours of post-master's supervised experience in the 
  7.13  delivery of clinical services in the treatment of mental 
  7.14  illness; 
  7.15     (2) for adults, in psychiatric nursing, a registered nurse 
  7.16  who is licensed under sections 148.171 to 148.285, and who is 
  7.17  certified as a clinical specialist in adult psychiatric and 
  7.18  mental health nursing by a national nurse certification 
  7.19  organization or who has a master's degree in nursing or one of 
  7.20  the behavioral sciences or related fields from an accredited 
  7.21  college or university or its equivalent, with at least 4,000 
  7.22  hours of post-master's supervised experience in the delivery of 
  7.23  clinical services in the treatment of mental illness; 
  7.24     (3) in clinical social work, a person licensed as an 
  7.25  independent clinical social worker under section 148B.21, 
  7.26  subdivision 6, or a person with a master's degree in social work 
  7.27  from an accredited college or university, with at least 4,000 
  7.28  hours of post-master's supervised experience in the delivery of 
  7.29  clinical services in the treatment of mental illness; 
  7.30     (4) in psychology, an individual licensed by the board of 
  7.31  psychology under sections 148.88 to 148.98, who has stated to 
  7.32  the board of psychology competencies in the diagnosis and 
  7.33  treatment of mental illness; 
  7.34     (5) in psychiatry, a physician licensed under chapter 147 
  7.35  and certified by the American Board of Psychiatry and Neurology 
  7.36  or eligible for board certification in psychiatry; and 
  8.1      (6) in marriage and family therapy, the mental health 
  8.2   professional must be a marriage and family therapist licensed 
  8.3   under sections 148B.29 to 148B.39, with at least two years of 
  8.4   post-master's supervised experience in the delivery of clinical 
  8.5   services in the treatment of mental illness. 
  8.6      Sec. 8.  Minnesota Statutes 2002, section 256J.09, 
  8.7   subdivision 2, is amended to read: 
  8.8      Subd. 2.  [COUNTY AGENCY RESPONSIBILITY TO PROVIDE 
  8.9   INFORMATION.] When a person inquires about assistance, a county 
  8.10  agency must: 
  8.11     (1) explain the eligibility requirements of, and how to 
  8.12  apply for, diversionary assistance as provided in section 
  8.13  256J.47; emergency assistance as provided in section 256J.48; 
  8.14  MFIP as provided in section 256J.10; or any other assistance for 
  8.15  which the person may be eligible; and 
  8.16     (2) offer the person brochures developed or approved by the 
  8.17  commissioner that describe how to apply for assistance. 
  8.18     Sec. 9.  Minnesota Statutes 2002, section 256J.09, 
  8.19  subdivision 3a, is amended to read: 
  8.20     Subd. 3a.  [SCREENING.] The county agency, or at county 
  8.21  option, the county's employment and training service provider as 
  8.22  defined in section 256J.49, must screen each applicant to 
  8.23  determine immediate needs and to determine if the applicant may 
  8.24  be eligible for: 
  8.25     (1) another program that is not partially funded through 
  8.26  the federal temporary assistance to needy families block grant 
  8.27  under Title I of Public Law Number 104-193, including the 
  8.28  expedited issuance of food stamps under section 256J.28, 
  8.29  subdivision 1.  If the applicant may be eligible for another 
  8.30  program, a county caseworker must provide the appropriate 
  8.31  referral to the program; 
  8.32     (2) the diversionary assistance program under section 
  8.33  256J.47; or 
  8.34     (3) (2) the emergency assistance program under section 
  8.35  256J.48.  
  8.36     Sec. 10.  Minnesota Statutes 2002, section 256J.09, 
  9.1   subdivision 10, is amended to read: 
  9.2      Subd. 10.  [APPLICANTS WHO DO NOT MEET ELIGIBILITY 
  9.3   REQUIREMENTS FOR MFIP OR THE DIVERSIONARY WORK PROGRAM.] When an 
  9.4   applicant is not eligible for MFIP or the diversionary work 
  9.5   program under section 256J.95 because the applicant does not 
  9.6   meet eligibility requirements, the county agency must determine 
  9.7   whether the applicant is eligible for food stamps, medical 
  9.8   assistance, diversionary assistance, or has a need for emergency 
  9.9   assistance when the applicant meets the eligibility requirements 
  9.10  for those programs. 
  9.11     Sec. 11.  Minnesota Statutes 2002, section 256J.21, 
  9.12  subdivision 2, is amended to read: 
  9.13     Subd. 2.  [INCOME EXCLUSIONS.] The following must be 
  9.14  excluded in determining a family's available income: 
  9.15     (1) payments for basic care, difficulty of care, and 
  9.16  clothing allowances received for providing family foster care to 
  9.17  children or adults under Minnesota Rules, parts 9545.0010 to 
  9.18  9545.0260 and 9555.5050 to 9555.6265, and payments received and 
  9.19  used for care and maintenance of a third-party beneficiary who 
  9.20  is not a household member; 
  9.21     (2) reimbursements for employment training received through 
  9.22  the Job Training Partnership Workforce Investment Act of 1998, 
  9.23  United States Code, title 29 20, chapter 19 73, sections 1501 
  9.24  to 1792b section 9201; 
  9.25     (3) reimbursement for out-of-pocket expenses incurred while 
  9.26  performing volunteer services, jury duty, employment, or 
  9.27  informal carpooling arrangements directly related to employment; 
  9.28     (4) all educational assistance, except the county agency 
  9.29  must count graduate student teaching assistantships, 
  9.30  fellowships, and other similar paid work as earned income and, 
  9.31  after allowing deductions for any unmet and necessary 
  9.32  educational expenses, shall count scholarships or grants awarded 
  9.33  to graduate students that do not require teaching or research as 
  9.34  unearned income; 
  9.35     (5) loans, regardless of purpose, from public or private 
  9.36  lending institutions, governmental lending institutions, or 
 10.1   governmental agencies; 
 10.2      (6) loans from private individuals, regardless of purpose, 
 10.3   provided an applicant or participant documents that the lender 
 10.4   expects repayment; 
 10.5      (7)(i) state income tax refunds; and 
 10.6      (ii) federal income tax refunds; 
 10.7      (8)(i) federal earned income credits; 
 10.8      (ii) Minnesota working family credits; 
 10.9      (iii) state homeowners and renters credits under chapter 
 10.10  290A; and 
 10.11     (iv) federal or state tax rebates; 
 10.12     (9) funds received for reimbursement, replacement, or 
 10.13  rebate of personal or real property when these payments are made 
 10.14  by public agencies, awarded by a court, solicited through public 
 10.15  appeal, or made as a grant by a federal agency, state or local 
 10.16  government, or disaster assistance organizations, subsequent to 
 10.17  a presidential declaration of disaster; 
 10.18     (10) the portion of an insurance settlement that is used to 
 10.19  pay medical, funeral, and burial expenses, or to repair or 
 10.20  replace insured property; 
 10.21     (11) reimbursements for medical expenses that cannot be 
 10.22  paid by medical assistance; 
 10.23     (12) payments by a vocational rehabilitation program 
 10.24  administered by the state under chapter 268A, except those 
 10.25  payments that are for current living expenses; 
 10.26     (13) in-kind income, including any payments directly made 
 10.27  by a third party to a provider of goods and services; 
 10.28     (14) assistance payments to correct underpayments, but only 
 10.29  for the month in which the payment is received; 
 10.30     (15) emergency assistance payments; 
 10.31     (16) funeral and cemetery payments as provided by section 
 10.32  256.935; 
 10.33     (17) nonrecurring cash gifts of $30 or less, not exceeding 
 10.34  $30 per participant in a calendar month; 
 10.35     (18) any form of energy assistance payment made through 
 10.36  Public Law Number 97-35, Low-Income Home Energy Assistance Act 
 11.1   of 1981, payments made directly to energy providers by other 
 11.2   public and private agencies, and any form of credit or rebate 
 11.3   payment issued by energy providers; 
 11.4      (19) Supplemental Security Income (SSI), including 
 11.5   retroactive SSI payments and other income of an SSI recipient; 
 11.6      (20) Minnesota supplemental aid, including retroactive 
 11.7   payments; 
 11.8      (21) proceeds from the sale of real or personal property; 
 11.9      (22) adoption assistance payments under section 259.67; 
 11.10     (23) state-funded family subsidy program payments made 
 11.11  under section 252.32 to help families care for children with 
 11.12  mental retardation or related conditions, consumer support grant 
 11.13  funds under section 256.476, and resources and services for a 
 11.14  disabled household member under one of the home and 
 11.15  community-based waiver services programs under chapter 256B; 
 11.16     (24) interest payments and dividends from property that is 
 11.17  not excluded from and that does not exceed the asset limit; 
 11.18     (25) rent rebates; 
 11.19     (26) income earned by a minor caregiver, minor child 
 11.20  through age 6, or a minor child who is at least a half-time 
 11.21  student in an approved elementary or secondary education 
 11.22  program; 
 11.23     (27) income earned by a caregiver under age 20 who is at 
 11.24  least a half-time student in an approved elementary or secondary 
 11.25  education program; 
 11.26     (28) MFIP child care payments under section 119B.05; 
 11.27     (29) all other payments made through MFIP to support a 
 11.28  caregiver's pursuit of greater self-support; 
 11.29     (30) income a participant receives related to shared living 
 11.30  expenses; 
 11.31     (31) reverse mortgages; 
 11.32     (32) benefits provided by the Child Nutrition Act of 1966, 
 11.33  United States Code, title 42, chapter 13A, sections 1771 to 
 11.34  1790; 
 11.35     (33) benefits provided by the women, infants, and children 
 11.36  (WIC) nutrition program, United States Code, title 42, chapter 
 12.1   13A, section 1786; 
 12.2      (34) benefits from the National School Lunch Act, United 
 12.3   States Code, title 42, chapter 13, sections 1751 to 1769e; 
 12.4      (35) relocation assistance for displaced persons under the 
 12.5   Uniform Relocation Assistance and Real Property Acquisition 
 12.6   Policies Act of 1970, United States Code, title 42, chapter 61, 
 12.7   subchapter II, section 4636, or the National Housing Act, United 
 12.8   States Code, title 12, chapter 13, sections 1701 to 1750jj; 
 12.9      (36) benefits from the Trade Act of 1974, United States 
 12.10  Code, title 19, chapter 12, part 2, sections 2271 to 2322; 
 12.11     (37) war reparations payments to Japanese Americans and 
 12.12  Aleuts under United States Code, title 50, sections 1989 to 
 12.13  1989d; 
 12.14     (38) payments to veterans or their dependents as a result 
 12.15  of legal settlements regarding Agent Orange or other chemical 
 12.16  exposure under Public Law Number 101-239, section 10405, 
 12.17  paragraph (a)(2)(E); 
 12.18     (39) income that is otherwise specifically excluded from 
 12.19  MFIP consideration in federal law, state law, or federal 
 12.20  regulation; 
 12.21     (40) security and utility deposit refunds; 
 12.22     (41) American Indian tribal land settlements excluded under 
 12.23  Public Law Numbers Laws 98-123, 98-124, and 99-377 to the 
 12.24  Mississippi Band Chippewa Indians of White Earth, Leech Lake, 
 12.25  and Mille Lacs reservations and payments to members of the White 
 12.26  Earth Band, under United States Code, title 25, chapter 9, 
 12.27  section 331, and chapter 16, section 1407; 
 12.28     (42) all income of the minor parent's parents and 
 12.29  stepparents when determining the grant for the minor parent in 
 12.30  households that include a minor parent living with parents or 
 12.31  stepparents on MFIP with other children; 
 12.32     (43) income of the minor parent's parents and stepparents 
 12.33  equal to 200 percent of the federal poverty guideline for a 
 12.34  family size not including the minor parent and the minor 
 12.35  parent's child in households that include a minor parent living 
 12.36  with parents or stepparents not on MFIP when determining the 
 13.1   grant for the minor parent.  The remainder of income is deemed 
 13.2   as specified in section 256J.37, subdivision 1b; 
 13.3      (44) payments made to children eligible for relative 
 13.4   custody assistance under section 257.85; 
 13.5      (45) vendor payments for goods and services made on behalf 
 13.6   of a client unless the client has the option of receiving the 
 13.7   payment in cash; and 
 13.8      (46) the principal portion of a contract for deed payment. 
 13.9      Sec. 12.  Minnesota Statutes 2002, section 256J.24, 
 13.10  subdivision 3, is amended to read: 
 13.11     Subd. 3.  [INDIVIDUALS WHO MUST BE EXCLUDED FROM AN 
 13.12  ASSISTANCE UNIT.] (a) The following individuals who are part of 
 13.13  the assistance unit determined under subdivision 2 are 
 13.14  ineligible to receive MFIP: 
 13.15     (1) individuals receiving who are recipients of 
 13.16  Supplemental Security Income or Minnesota supplemental aid; 
 13.17     (2) individuals disqualified from the food stamp program or 
 13.18  MFIP, until the disqualification ends; 
 13.19     (3) children on whose behalf federal, state or local foster 
 13.20  care payments are made, except as provided in sections 256J.13, 
 13.21  subdivision 2, and 256J.74, subdivision 2; and 
 13.22     (4) children receiving ongoing monthly adoption assistance 
 13.23  payments under section 259.67.  
 13.24     (b) The exclusion of a person under this subdivision does 
 13.25  not alter the mandatory assistance unit composition. 
 13.26     Sec. 13.  Minnesota Statutes 2002, section 256J.37, 
 13.27  subdivision 9, is amended to read: 
 13.28     Subd. 9.  [UNEARNED INCOME.] (a) The county agency must 
 13.29  apply unearned income to the MFIP standard of need.  When 
 13.30  determining the amount of unearned income, the county agency 
 13.31  must deduct the costs necessary to secure payments of unearned 
 13.32  income.  These costs include legal fees, medical fees, and 
 13.33  mandatory deductions such as federal and state income taxes. 
 13.34     (b) Effective July 1, 2003, the county agency shall count 
 13.35  $100 of the value of public and assisted rental subsidies 
 13.36  provided through the Department of Housing and Urban Development 
 14.1   (HUD) as unearned income.  The full amount of the subsidy must 
 14.2   be counted as unearned income when the subsidy is less than $100.
 14.3      (c) The provisions of paragraph (b) shall not apply to MFIP 
 14.4   participants who are exempt from the employment and training 
 14.5   services component because they are: 
 14.6      (i) individuals who are age 60 or older; 
 14.7      (ii) individuals who are suffering from a professionally 
 14.8   certified permanent or temporary illness, injury, or incapacity 
 14.9   which is expected to continue for more than 30 days and which 
 14.10  prevents the person from obtaining or retaining employment; or 
 14.11     (iii) caregivers whose presence in the home is required 
 14.12  because of the professionally certified illness or incapacity of 
 14.13  another member in the assistance unit, a relative in the 
 14.14  household, or a foster child in the household. 
 14.15     (d) The provisions of paragraph (b) shall not apply to an 
 14.16  MFIP assistance unit where the parental caregiver receives 
 14.17  supplemental security income. 
 14.18     Sec. 14.  Minnesota Statutes 2002, section 256J.38, 
 14.19  subdivision 3, is amended to read: 
 14.20     Subd. 3.  [RECOVERING OVERPAYMENTS FROM FORMER 
 14.21  PARTICIPANTS.] A county agency must initiate efforts to recover 
 14.22  overpayments paid to a former participant or caregiver.  Adults 
 14.23  Caregivers, both parental and nonparental, and minor caregivers 
 14.24  of an assistance unit at the time an overpayment occurs, whether 
 14.25  receiving assistance or not, are jointly and individually liable 
 14.26  for repayment of the overpayment.  The county agency must 
 14.27  request repayment from the former participants and caregivers.  
 14.28  When an agreement for repayment is not completed within six 
 14.29  months of the date of discovery or when there is a default on an 
 14.30  agreement for repayment after six months, the county agency must 
 14.31  initiate recovery consistent with chapter 270A, or section 
 14.32  541.05.  When a person has been convicted of fraud under section 
 14.33  256.98, recovery must be sought regardless of the amount of 
 14.34  overpayment.  When an overpayment is less than $35, and is not 
 14.35  the result of a fraud conviction under section 256.98, the 
 14.36  county agency must not seek recovery under this subdivision.  
 15.1   The county agency must retain information about all overpayments 
 15.2   regardless of the amount.  When an adult, adult caregiver, or 
 15.3   minor caregiver reapplies for assistance, the overpayment must 
 15.4   be recouped under subdivision 4. 
 15.5      Sec. 15.  Minnesota Statutes 2002, section 256J.40, is 
 15.6   amended to read: 
 15.7      256J.40 [FAIR HEARINGS.] 
 15.8      Caregivers receiving a notice of intent to sanction or a 
 15.9   notice of adverse action that includes a sanction, reduction in 
 15.10  benefits, suspension of benefits, denial of benefits, or 
 15.11  termination of benefits may request a fair hearing.  A request 
 15.12  for a fair hearing must be submitted in writing to the county 
 15.13  agency or to the commissioner and must be mailed within 30 days 
 15.14  after a participant or former participant receives written 
 15.15  notice of the agency's action or within 90 days when a 
 15.16  participant or former participant shows good cause for not 
 15.17  submitting the request within 30 days.  A former participant who 
 15.18  receives a notice of adverse action due to an overpayment may 
 15.19  appeal the adverse action according to the requirements in this 
 15.20  section.  Issues that may be appealed are: 
 15.21     (1) the amount of the assistance payment; 
 15.22     (2) a suspension, reduction, denial, or termination of 
 15.23  assistance; 
 15.24     (3) the basis for an overpayment, the calculated amount of 
 15.25  an overpayment, and the level of recoupment; 
 15.26     (4) the eligibility for an assistance payment; and 
 15.27     (5) the use of protective or vendor payments under section 
 15.28  256J.39, subdivision 2, clauses (1) to (3). 
 15.29     Except for benefits issued under section 256J.95, a county 
 15.30  agency must not reduce, suspend, or terminate payment when an 
 15.31  aggrieved participant requests a fair hearing prior to the 
 15.32  effective date of the adverse action or within ten days of the 
 15.33  mailing of the notice of adverse action, whichever is later, 
 15.34  unless the participant requests in writing not to receive 
 15.35  continued assistance pending a hearing decision.  An appeal 
 15.36  request cannot extend benefits for the diversionary work program 
 16.1   under section 256J.95 beyond the four-month time limit.  
 16.2   Assistance issued pending a fair hearing is subject to recovery 
 16.3   under section 256J.38 when as a result of the fair hearing 
 16.4   decision the participant is determined ineligible for assistance 
 16.5   or the amount of the assistance received.  A county agency may 
 16.6   increase or reduce an assistance payment while an appeal is 
 16.7   pending when the circumstances of the participant change and are 
 16.8   not related to the issue on appeal.  The commissioner's order is 
 16.9   binding on a county agency.  No additional notice is required to 
 16.10  enforce the commissioner's order. 
 16.11     A county agency shall reimburse appellants for reasonable 
 16.12  and necessary expenses of attendance at the hearing, such as 
 16.13  child care and transportation costs and for the transportation 
 16.14  expenses of the appellant's witnesses and representatives to and 
 16.15  from the hearing.  Reasonable and necessary expenses do not 
 16.16  include legal fees.  Fair hearings must be conducted at a 
 16.17  reasonable time and date by an impartial referee employed by the 
 16.18  department.  The hearing may be conducted by telephone or at a 
 16.19  site that is readily accessible to persons with disabilities. 
 16.20     The appellant may introduce new or additional evidence 
 16.21  relevant to the issues on appeal.  Recommendations of the 
 16.22  appeals referee and decisions of the commissioner must be based 
 16.23  on evidence in the hearing record and are not limited to a 
 16.24  review of the county agency action. 
 16.25     Sec. 16.  Minnesota Statutes 2002, section 256J.42, 
 16.26  subdivision 5, is amended to read: 
 16.27     Subd. 5.  [EXEMPTION FOR CERTAIN FAMILIES.] (a) Any cash 
 16.28  assistance received by an assistance unit does not count toward 
 16.29  the 60-month limit on assistance during a month in which the 
 16.30  caregiver is in the category in age 60 or older, including 
 16.31  months during which the caregiver was exempt under section 
 16.32  256J.56, paragraph (a), clause (1). 
 16.33     (b) From July 1, 1997, until the date MFIP is operative in 
 16.34  the caregiver's county of financial responsibility, any cash 
 16.35  assistance received by a caregiver who is complying with 
 16.36  Minnesota Statutes 1996, section 256.73, subdivision 5a, and 
 17.1   Minnesota Statutes 1998, section 256.736, if applicable, does 
 17.2   not count toward the 60-month limit on assistance.  Thereafter, 
 17.3   any cash assistance received by a minor caregiver who is 
 17.4   complying with the requirements of sections 256J.14 and 256J.54, 
 17.5   if applicable, does not count towards the 60-month limit on 
 17.6   assistance. 
 17.7      (c) Any diversionary assistance or emergency assistance 
 17.8   received does not count toward the 60-month limit. 
 17.9      (d) Any cash assistance received by an 18- or 19-year-old 
 17.10  caregiver who is complying with the requirements of section 
 17.11  256J.54 does not count toward the 60-month limit. 
 17.12     (e) Diversionary work program benefits provided under 
 17.13  section 256J.95 do not count toward the 60-month time limit. 
 17.14     Sec. 17.  Minnesota Statutes 2002, section 256J.425, 
 17.15  subdivision 2, is amended to read: 
 17.16     Subd. 2.  [ILL OR INCAPACITATED.] (a) An assistance unit 
 17.17  subject to the time limit in section 256J.42, subdivision 1, in 
 17.18  which any participant has received 60 counted months of 
 17.19  assistance, is eligible to receive months of assistance under a 
 17.20  hardship extension if the participant who reached the time limit 
 17.21  belongs to any of the following groups: 
 17.22     (1) participants who are suffering from a professionally 
 17.23  certified an illness, injury, or incapacity which has been 
 17.24  certified by a qualified professional when the illness, injury, 
 17.25  or incapacity is expected to continue for more than 30 days 
 17.26  and which prevents the person from obtaining or retaining 
 17.27  employment and who are following.  These participants must 
 17.28  follow the treatment recommendations of the health care provider 
 17.29  qualified professional certifying the illness, injury, or 
 17.30  incapacity; 
 17.31     (2) participants whose presence in the home is required as 
 17.32  a caregiver because of a professionally certified the illness or 
 17.33  incapacity of another member in the assistance unit, a relative 
 17.34  in the household, or a foster child in the household and when 
 17.35  the illness or incapacity and the need for the participant's 
 17.36  presence in the home has been certified by a qualified 
 18.1   professional and is expected to continue for more than 30 days; 
 18.2   or 
 18.3      (3) caregivers with a child or an adult in the household 
 18.4   who meets the disability or medical criteria for home care 
 18.5   services under section 256B.0627, subdivision 1, paragraph (c), 
 18.6   or a home and community-based waiver services program under 
 18.7   chapter 256B, or meets the criteria for severe emotional 
 18.8   disturbance under section 245.4871, subdivision 6, or for 
 18.9   serious and persistent mental illness under section 245.462, 
 18.10  subdivision 20, paragraph (c).  Caregivers in this category are 
 18.11  presumed to be prevented from obtaining or retaining employment. 
 18.12     (b) An assistance unit receiving assistance under a 
 18.13  hardship extension under this subdivision may continue to 
 18.14  receive assistance as long as the participant meets the criteria 
 18.15  in paragraph (a), clause (1), (2), or (3). 
 18.16     Sec. 18.  Minnesota Statutes 2002, section 256J.425, 
 18.17  subdivision 3, is amended to read: 
 18.18     Subd. 3.  [HARD-TO-EMPLOY PARTICIPANTS.] An assistance unit 
 18.19  subject to the time limit in section 256J.42, subdivision 1, in 
 18.20  which any participant has received 60 counted months of 
 18.21  assistance, is eligible to receive months of assistance under a 
 18.22  hardship extension if the participant who reached the time limit 
 18.23  belongs to any of the following groups: 
 18.24     (1) a person who is diagnosed by a licensed physician, 
 18.25  psychological practitioner, or other qualified professional, as 
 18.26  mentally retarded or mentally ill, and that condition prevents 
 18.27  the person from obtaining or retaining unsubsidized employment; 
 18.28     (2) a person who: 
 18.29     (i) has been assessed by a vocational specialist or the 
 18.30  county agency to be unemployable for purposes of this 
 18.31  subdivision; or 
 18.32     (ii) has an IQ below 80 who has been assessed by a 
 18.33  vocational specialist or a county agency to be employable, but 
 18.34  not at a level that makes the participant eligible for an 
 18.35  extension under subdivision 4 or,.  The determination of IQ 
 18.36  level must be made by a qualified professional.  In the case of 
 19.1   a non-English-speaking person for whom it is not possible to 
 19.2   provide a determination due to language barriers or absence of 
 19.3   culturally appropriate assessment tools, is determined by a 
 19.4   qualified professional to have an IQ below 80.  A person is 
 19.5   considered employable if positions of employment in the local 
 19.6   labor market exist, regardless of the current availability of 
 19.7   openings for those positions, that the person is capable of 
 19.8   performing; 
 19.9      (3) a person who is determined by the county agency a 
 19.10  qualified professional to be learning disabled or, in the case 
 19.11  of a non-English-speaking person for whom it is not possible to 
 19.12  provide a medical diagnosis due to language barriers or absence 
 19.13  of culturally appropriate assessment tools, is determined by a 
 19.14  qualified professional to have a learning disability.  If a 
 19.15  rehabilitation plan for the person is developed or approved by 
 19.16  the county agency, the plan must be incorporated into the 
 19.17  employment plan.  However, a rehabilitation plan does not 
 19.18  replace the requirement to develop and comply with an employment 
 19.19  plan under section 256J.52.  For purposes of this section, 
 19.20  "learning disabled" means the applicant or recipient has a 
 19.21  disorder in one or more of the psychological processes involved 
 19.22  in perceiving, understanding, or using concepts through verbal 
 19.23  language or nonverbal means.  The disability must severely limit 
 19.24  the applicant or recipient in obtaining, performing, or 
 19.25  maintaining suitable employment.  Learning disabled does not 
 19.26  include learning problems that are primarily the result of 
 19.27  visual, hearing, or motor handicaps; mental retardation; 
 19.28  emotional disturbance; or due to environmental, cultural, or 
 19.29  economic disadvantage; or 
 19.30     (4) a person who is a victim of family violence as defined 
 19.31  in section 256J.49, subdivision 2, and who is participating in 
 19.32  an alternative employment plan under section 256J.49, 
 19.33  subdivision 1a.  
 19.34     Sec. 19.  Minnesota Statutes 2002, section 256J.425, 
 19.35  subdivision 4, is amended to read: 
 19.36     Subd. 4.  [EMPLOYED PARTICIPANTS.] (a) An assistance unit 
 20.1   subject to the time limit under section 256J.42, subdivision 1, 
 20.2   in which any participant has received 60 months of assistance, 
 20.3   is eligible to receive assistance under a hardship extension if 
 20.4   the participant who reached the time limit belongs to: 
 20.5      (1) a one-parent assistance unit in which the participant 
 20.6   is participating in work activities for at least 30 hours per 
 20.7   week, of which an average of at least 25 hours per week every 
 20.8   month are spent participating in employment; 
 20.9      (2) a two-parent assistance unit in which the participants 
 20.10  are participating in work activities for at least 55 hours per 
 20.11  week, of which an average of at least 45 hours per week every 
 20.12  month are spent participating in employment; or 
 20.13     (3) an assistance unit in which a participant is 
 20.14  participating in employment for fewer hours than those specified 
 20.15  in clause (1), and the participant submits verification from a 
 20.16  health care provider qualified professional, in a form 
 20.17  acceptable to the commissioner, stating that the number of hours 
 20.18  the participant may work is limited due to illness or 
 20.19  disability, as long as the participant is participating in 
 20.20  employment for at least the number of hours specified by 
 20.21  the health care provider qualified professional.  The 
 20.22  participant must be following the treatment recommendations of 
 20.23  the health care provider qualified professional providing the 
 20.24  verification.  The commissioner shall develop a form to be 
 20.25  completed and signed by the health care provider qualified 
 20.26  professional, documenting the diagnosis and any additional 
 20.27  information necessary to document the functional limitations of 
 20.28  the participant that limit work hours.  If the participant is 
 20.29  part of a two-parent assistance unit, the other parent must be 
 20.30  treated as a one-parent assistance unit for purposes of meeting 
 20.31  the work requirements under this subdivision. 
 20.32     (b) For purposes of this section, employment means: 
 20.33     (1) unsubsidized employment under section 256J.49, 
 20.34  subdivision 13, clause (1); 
 20.35     (2) subsidized employment under section 256J.49, 
 20.36  subdivision 13, clause (2); 
 21.1      (3) on-the-job training under section 256J.49, subdivision 
 21.2   13, clause (4); 
 21.3      (4) an apprenticeship under section 256J.49, subdivision 
 21.4   13, clause (19); 
 21.5      (5) supported work.  For purposes of this section, 
 21.6   "supported work" means services supporting a participant on the 
 21.7   job which include, but are not limited to, supervision, job 
 21.8   coaching, and subsidized wages; 
 21.9      (6) a combination of clauses (1) to (5); or 
 21.10     (7) child care under section 256J.49, subdivision 13, 
 21.11  clause (25), if it is in combination with paid employment. 
 21.12     (c) If a participant is complying with a child protection 
 21.13  plan under chapter 260C, the number of hours required under the 
 21.14  child protection plan count toward the number of hours required 
 21.15  under this subdivision.  
 21.16     (d) The county shall provide the opportunity for subsidized 
 21.17  employment to participants needing that type of employment 
 21.18  within available appropriations. 
 21.19     (e) To be eligible for a hardship extension for employed 
 21.20  participants under this subdivision, a participant in a 
 21.21  one-parent assistance unit or both parents in a two-parent 
 21.22  assistance unit must be in compliance for at least ten out of 
 21.23  the 12 months immediately preceding the participant's 61st month 
 21.24  on assistance.  If only one parent in a two-parent assistance 
 21.25  unit fails to be in compliance ten out of the 12 months 
 21.26  immediately preceding the participant's 61st month, the county 
 21.27  shall give the assistance unit the option of disqualifying the 
 21.28  noncompliant parent.  If the noncompliant participant is 
 21.29  disqualified, the assistance unit must be treated as a 
 21.30  one-parent assistance unit for the purposes of meeting the work 
 21.31  requirements under this subdivision and the assistance unit's 
 21.32  MFIP grant shall be calculated using the shared household 
 21.33  standard under section 256J.08, subdivision 82a. 
 21.34     (f) The employment plan developed under section 256J.52, 
 21.35  subdivision 5, for participants under this subdivision must 
 21.36  contain the number of hours specified in paragraph (a) related 
 22.1   to employment and work activities.  The job counselor and the 
 22.2   participant must sign the employment plan to indicate agreement 
 22.3   between the job counselor and the participant on the contents of 
 22.4   the plan. 
 22.5      (g) Participants who fail to meet the requirements in 
 22.6   paragraph (a), without good cause under section 256J.57, shall 
 22.7   be sanctioned or permanently disqualified under subdivision 6.  
 22.8   Good cause may only be granted for that portion of the month for 
 22.9   which the good cause reason applies.  Participants must meet all 
 22.10  remaining requirements in the approved employment plan or be 
 22.11  subject to sanction or permanent disqualification.  
 22.12     (h) If the noncompliance with an employment plan is due to 
 22.13  the involuntary loss of employment, the participant is exempt 
 22.14  from the hourly employment requirement under this subdivision 
 22.15  for one month.  Participants must meet all remaining 
 22.16  requirements in the approved employment plan or be subject to 
 22.17  sanction or permanent disqualification.  This exemption is 
 22.18  available to one-parent assistance units two times in a 12-month 
 22.19  period, and two-parent assistance units, two times per parent in 
 22.20  a 12-month period. 
 22.21     (i) This subdivision expires on June 30, 2004. 
 22.22     Sec. 20.  Minnesota Statutes 2002, section 256J.425, 
 22.23  subdivision 6, is amended to read: 
 22.24     Subd. 6.  [SANCTIONS FOR EXTENDED CASES.] (a) If one or 
 22.25  both participants in an assistance unit receiving assistance 
 22.26  under subdivision 3 or 4 are not in compliance with the 
 22.27  employment and training service requirements in sections 256J.52 
 22.28  to 256J.55, the sanctions under this subdivision apply.  For a 
 22.29  first occurrence of noncompliance, an assistance unit must be 
 22.30  sanctioned under section 256J.46, subdivision 1, paragraph (d), 
 22.31  clause (1).  For a second or third subsequent occurrence of 
 22.32  noncompliance, the assistance unit must be sanctioned under 
 22.33  section 256J.46, subdivision 1, paragraph (d), clause (2).  For 
 22.34  a fourth occurrence of noncompliance, the assistance unit is 
 22.35  disqualified from MFIP.  If a participant is determined to be 
 22.36  out of compliance, the participant may claim a good cause 
 23.1   exception under section 256J.57, however, the participant may 
 23.2   not claim an exemption under section 256J.56.  
 23.3      (b) If both participants in a two-parent assistance unit 
 23.4   are out of compliance at the same time, it is considered one 
 23.5   occurrence of noncompliance.  
 23.6      Sec. 21.  Minnesota Statutes 2002, section 256J.50, 
 23.7   subdivision 1, is amended to read: 
 23.8      Subdivision 1.  [EMPLOYMENT AND TRAINING SERVICES COMPONENT 
 23.9   OF MFIP.] (a) By January 1, 1998, Each county must develop and 
 23.10  implement provide an employment and training services component 
 23.11  of MFIP which is designed to put participants on the most direct 
 23.12  path to unsubsidized employment.  Participation in these 
 23.13  services is mandatory for all MFIP caregivers, unless the 
 23.14  caregiver is exempt under section 256J.56. 
 23.15     (b) A county must provide employment and training services 
 23.16  under sections 256J.515 to 256J.74 within 30 days after 
 23.17  the caregiver's participation becomes mandatory under 
 23.18  subdivision 5 or within 30 days of receipt of a request for 
 23.19  services from a caregiver who under section 256J.42 is no longer 
 23.20  eligible to receive MFIP but whose income is below 120 percent 
 23.21  of the federal poverty guidelines for a family of the same 
 23.22  size.  The request must be made within 12 months of the date the 
 23.23  caregivers' MFIP case was closed caregiver is determined 
 23.24  eligible for MFIP, or within five days when the caregiver 
 23.25  participated in the diversionary work program under section 
 23.26  256J.95 within the past 12 months. 
 23.27     Sec. 22.  Minnesota Statutes 2002, section 256J.50, 
 23.28  subdivision 8, is amended to read: 
 23.29     Subd. 8.  [COUNTY DUTY TO ENSURE EMPLOYMENT AND TRAINING 
 23.30  CHOICES FOR PARTICIPANTS.] Each county, or group of counties 
 23.31  working cooperatively, shall make available to participants the 
 23.32  choice of at least two employment and training service providers 
 23.33  as defined under section 256J.49, subdivision 4, except in 
 23.34  counties utilizing workforce centers that use multiple 
 23.35  employment and training services, offer multiple services 
 23.36  options under a collaborative effort and can document that 
 24.1   participants have choice among employment and training services 
 24.2   designed to meet specialized needs.  The requirements of this 
 24.3   subdivision do not apply to the diversionary work program under 
 24.4   section 256J.95. 
 24.5      Sec. 23.  Minnesota Statutes 2002, section 256J.55, 
 24.6   subdivision 2, is amended to read: 
 24.7      Subd. 2.  [DUTY TO REPORT.] The participant must inform the 
 24.8   job counselor within three ten working days regarding any 
 24.9   changes related to the participant's employment status. 
 24.10     Sec. 24.  Minnesota Statutes 2002, section 256J.56, is 
 24.11  amended to read: 
 24.12     256J.56 [EMPLOYMENT AND TRAINING SERVICES COMPONENT; 
 24.13  EXEMPTIONS.] 
 24.14     (a) An MFIP participant is exempt from the requirements of 
 24.15  sections 256J.52 to 256J.55 if the participant belongs to any of 
 24.16  the following groups: 
 24.17     (1) participants who are age 60 or older; 
 24.18     (2) participants who are suffering from a professionally 
 24.19  certified permanent or temporary illness, injury, or incapacity 
 24.20  which has been certified by a qualified professional when the 
 24.21  illness, injury, or incapacity is expected to continue for more 
 24.22  than 30 days and which prevents the person from obtaining or 
 24.23  retaining employment.  Persons in this category with a temporary 
 24.24  illness, injury, or incapacity must be reevaluated at least 
 24.25  quarterly; 
 24.26     (3) participants whose presence in the home is required as 
 24.27  a caregiver because of a professionally certified the illness or 
 24.28  incapacity of another member in the assistance unit, a relative 
 24.29  in the household, or a foster child in the household and when 
 24.30  the illness or incapacity and the need for the participant's 
 24.31  presence in the home has been certified by a qualified 
 24.32  professional and is expected to continue for more than 30 days; 
 24.33     (4) women who are pregnant, if the pregnancy has resulted 
 24.34  in a professionally certified an incapacity that prevents the 
 24.35  woman from obtaining or retaining employment, and the incapacity 
 24.36  has been certified by a qualified professional; 
 25.1      (5) caregivers of a child under the age of one year who 
 25.2   personally provide full-time care for the child.  This exemption 
 25.3   may be used for only 12 months in a lifetime.  In two-parent 
 25.4   households, only one parent or other relative may qualify for 
 25.5   this exemption; 
 25.6      (6) participants experiencing a personal or family crisis 
 25.7   that makes them incapable of participating in the program, as 
 25.8   determined by the county agency.  If the participant does not 
 25.9   agree with the county agency's determination, the participant 
 25.10  may seek professional certification from a qualified 
 25.11  professional, as defined in section 256J.08, that the 
 25.12  participant is incapable of participating in the program. 
 25.13     Persons in this exemption category must be reevaluated 
 25.14  every 60 days.  A personal or family crisis related to family 
 25.15  violence, as determined by the county or a job counselor with 
 25.16  the assistance of a person trained in domestic violence, should 
 25.17  not result in an exemption, but should be addressed through the 
 25.18  development or revision of an alternative employment plan under 
 25.19  section 256J.52, subdivision 6; or 
 25.20     (7) caregivers with a child or an adult in the household 
 25.21  who meets the disability or medical criteria for home care 
 25.22  services under section 256B.0627, subdivision 1, paragraph (c), 
 25.23  or a home and community-based waiver services program under 
 25.24  chapter 256B, or meets the criteria for severe emotional 
 25.25  disturbance under section 245.4871, subdivision 6, or for 
 25.26  serious and persistent mental illness under section 245.462, 
 25.27  subdivision 20, paragraph (c).  Caregivers in this exemption 
 25.28  category are presumed to be prevented from obtaining or 
 25.29  retaining employment. 
 25.30     A caregiver who is exempt under clause (5) must enroll in 
 25.31  and attend an early childhood and family education class, a 
 25.32  parenting class, or some similar activity, if available, during 
 25.33  the period of time the caregiver is exempt under this section.  
 25.34  Notwithstanding section 256J.46, failure to attend the required 
 25.35  activity shall not result in the imposition of a sanction. 
 25.36     (b) The county agency must provide employment and training 
 26.1   services to MFIP participants who are exempt under this section, 
 26.2   but who volunteer to participate.  Exempt volunteers may request 
 26.3   approval for any work activity under section 256J.49, 
 26.4   subdivision 13.  The hourly participation requirements for 
 26.5   nonexempt participants under section 256J.50, subdivision 5, do 
 26.6   not apply to exempt participants who volunteer to participate. 
 26.7      Sec. 25.  Minnesota Statutes 2002, section 256J.751, 
 26.8   subdivision 2, is amended to read: 
 26.9      Subd. 2.  [QUARTERLY COMPARISON REPORT.] The commissioner 
 26.10  shall report quarterly to all counties on each county's 
 26.11  performance on the following measures: 
 26.12     (1) percent of MFIP caseload working in paid employment; 
 26.13     (2) percent of MFIP caseload receiving only the food 
 26.14  portion of assistance; 
 26.15     (3) number of MFIP cases that have left assistance; 
 26.16     (4) federal participation requirements as specified in 
 26.17  Title 1 of Public Law Number 104-193; 
 26.18     (5) median placement wage rate; and 
 26.19     (6) caseload by months of TANF assistance. 
 26.20     Sec. 26.  Minnesota Statutes 2002, section 256J.751, 
 26.21  subdivision 5, is amended to read: 
 26.22     Subd. 5.  [FAILURE TO MEET FEDERAL PERFORMANCE STANDARDS.] 
 26.23  (a) If sanctions occur for failure to meet the performance 
 26.24  standards specified in title 1 of Public Law Number 104-193 of 
 26.25  the Personal Responsibility and Work Opportunity Act of 1996, 
 26.26  the state shall pay 88 percent of the sanction.  The remaining 
 26.27  12 percent of the sanction will be paid by the counties.  The 
 26.28  county portion of the sanction will be distributed across all 
 26.29  counties in proportion to each county's percentage of the MFIP 
 26.30  average monthly caseload during the period for which the 
 26.31  sanction was applied. 
 26.32     (b) If a county fails to meet the performance standards 
 26.33  specified in title 1 of Public Law Number 104-193 of the 
 26.34  Personal Responsibility and Work Opportunity Act of 1996 for any 
 26.35  year, the commissioner shall work with counties to organize a 
 26.36  joint state-county technical assistance team to work with the 
 27.1   county.  The commissioner shall coordinate any technical 
 27.2   assistance with other departments and agencies including the 
 27.3   departments of economic security and children, families, and 
 27.4   learning as necessary to achieve the purpose of this paragraph. 
 27.5      Sec. 27.  [256J.95] [DIVERSIONARY WORK PROGRAM.] 
 27.6      Subdivision 1.  [ESTABLISHING A DIVERSIONARY WORK PROGRAM 
 27.7   (DWP).] (a) The Personal Responsibility and Work Opportunity 
 27.8   Reconciliation Act of 1996, Public Law 104-193, establishes 
 27.9   block grants to states for temporary assistance for needy 
 27.10  families (TANF).  TANF provisions allow states to use TANF 
 27.11  dollars for nonrecurrent, short-term diversionary benefits.  The 
 27.12  diversionary work program established on July 1, 2003, is 
 27.13  Minnesota's TANF program to provide short-term diversionary 
 27.14  benefits to eligible recipients of the diversionary work program.
 27.15     (b) The goal of the diversionary work program is to provide 
 27.16  short-term, necessary services and supports to families which 
 27.17  will lead to unsubsidized employment, increase economic 
 27.18  stability, and reduce the risk of those families needing longer 
 27.19  term assistance, under the Minnesota family investment program 
 27.20  (MFIP). 
 27.21     (c) When a family unit meets the eligibility criteria in 
 27.22  this section, the family must receive a diversionary work 
 27.23  program grant and is not eligible for MFIP. 
 27.24     (d) A family unit is eligible for the diversionary work 
 27.25  program for a maximum of four months only once in a 12-month 
 27.26  period.  The 12-month period begins at the date of application 
 27.27  or the date eligibility is met, whichever is later.  Counties 
 27.28  may provide supportive and other allowable services funded by 
 27.29  section 256J.62, including $75 for transportation-related 
 27.30  expenses, to eligible participants during the four-month 
 27.31  diversionary period. 
 27.32     Subd. 2.  [DEFINITIONS.] The terms used in this section 
 27.33  have the following meanings. 
 27.34     (a) "Diversionary Work Program (DWP)" means the program 
 27.35  established under this section. 
 27.36     (b) "Employment plan" means a plan developed by the job 
 28.1   counselor and the participant which identifies the participant's 
 28.2   most direct path to unsubsidized employment, lists the specific 
 28.3   steps that the caregiver will take on that path, and includes a 
 28.4   timetable for the completion of each step.  For participants who 
 28.5   request and qualify for a family violence waiver in section 
 28.6   256J.521, subdivision 3, an employment plan must be developed by 
 28.7   the job counselor, the participant and a person trained in 
 28.8   domestic violence and follow the employment plan provisions in 
 28.9   section 256J.521, subdivision 3.  Employment plans under this 
 28.10  section shall be written for a period of time not to exceed four 
 28.11  months. 
 28.12     (c) "Employment services" means programs, activities, and 
 28.13  services in this section that are designed to assist 
 28.14  participants in obtaining and retaining employment. 
 28.15     (d) "Family maintenance needs" means current housing costs 
 28.16  including rent, manufactured home lot rental costs, or monthly 
 28.17  principal, interest, insurance premiums, and property taxes due 
 28.18  for mortgages or contracts for deed, association fees required 
 28.19  for homeownership, utility costs for current month expenses of 
 28.20  gas and electric, garbage, water and sewer, and a flat rate of 
 28.21  $35 for a telephone. 
 28.22     (e) "Family unit" means a group of people applying for or 
 28.23  receiving DWP benefits together.  For the purposes of 
 28.24  determining eligibility for this program, the unit includes the 
 28.25  relationships in section 256J.24, subdivisions 2 and 4. 
 28.26     (f) "Minnesota family investment program (MFIP)" means the 
 28.27  assistance program as defined in section 256J.08, subdivision 57.
 28.28     (g) "Personal needs allowance" means an allowance of $70 
 28.29  per month per DWP unit member to pay for expenses such as 
 28.30  household products and personal products, to the extent such 
 28.31  amounts are available when calculating the diversionary work 
 28.32  program grant under subdivision 10. 
 28.33     (h) "Work activities" means allowable work activities as 
 28.34  defined in section 256J.49, subdivision 13. 
 28.35     Subd. 3.  [ELIGIBILITY FOR DIVERSIONARY WORK PROGRAM.] (a) 
 28.36  Individuals who apply for cash benefits and who meet MFIP 
 29.1   eligibility under sections 256J.11 to 256J.15, and have a high 
 29.2   school diploma or its equivalent and have participated in either 
 29.3   employment for 30 or more hours per week in four of the previous 
 29.4   12 months or are currently working at least 30 hours per week 
 29.5   must participate in the diversionary work program. 
 29.6      (b) Family units who are not eligible for the diversionary 
 29.7   work programs include: 
 29.8      (1) individuals who have no full-time work experience, 
 29.9   which equals at least 30 hours per week, in any of the past 12 
 29.10  months; 
 29.11     (2) child-only cases; 
 29.12     (3) a caregiver age 60 or older; 
 29.13     (4) a caregiver who has experienced a family crisis, 
 29.14  including domestic violence, which prevents employment; 
 29.15     (5) a minor caregiver or a caregiver 18 or 19 years of age 
 29.16  who is cooperating with an employment plan under section 
 29.17  256J.54; and 
 29.18     (6) a caregiver who has an eligible child six months old or 
 29.19  younger. 
 29.20     (c) Caregivers who do not fall under paragraph (a) or (b), 
 29.21  who meet MFIP eligibility, may volunteer to participate in the 
 29.22  diversionary work program. 
 29.23     Subd. 4.  [SUBMITTING APPLICATION FORM.] The eligibility 
 29.24  date for the diversionary work program begins with the date the 
 29.25  signed combined application form (CAF) is received by the county 
 29.26  agency or the date diversionary work program eligibility 
 29.27  criteria are met, whichever is later.  The county agency must 
 29.28  inform the applicant that any delay in submitting the 
 29.29  application will reduce the benefits paid for the month of 
 29.30  application.  The county agency must inform a person that an 
 29.31  application may be submitted before the person has an interview 
 29.32  appointment.  Upon receipt of a signed application, the county 
 29.33  agency must stamp the date of receipt on the face of the 
 29.34  application.  The applicant may withdraw the application at any 
 29.35  time prior to approval by giving written or oral notice to the 
 29.36  county agency.  The county agency must follow the notice 
 30.1   requirements in section 256J.09, subdivision 3, when issuing a 
 30.2   notice confirming the withdrawal. 
 30.3      Subd. 5.  [INITIAL SCREENING OF APPLICATIONS.] Upon receipt 
 30.4   of the application, the county agency must determine if the 
 30.5   applicant may be eligible for other benefits as required in 
 30.6   sections 256J.09, subdivision 3a, and 256J.28, subdivisions 1 
 30.7   and 5.  The county must also follow the provisions in section 
 30.8   256J.09, subdivision 3b, clause (2). 
 30.9      Subd. 6.  [PROGRAM AND PROCESSING STANDARDS.] (a) The 
 30.10  interview to determine financial eligibility for the 
 30.11  diversionary work program must be conducted within five working 
 30.12  days of the receipt of the cash application form.  During the 
 30.13  intake interview the financial worker must discuss: 
 30.14     (1) the goals, requirements, and services of the 
 30.15  diversionary work program; 
 30.16     (2) the availability of child care assistance.  If child 
 30.17  care is needed, the worker must obtain a completed application 
 30.18  for child care from the applicant before the interview is 
 30.19  terminated.  The same day the application for child care is 
 30.20  received, the application must be forwarded to the appropriate 
 30.21  child care worker.  For purposes of eligibility for child care 
 30.22  assistance under chapter 119B, DWP participants shall be 
 30.23  eligible for the same benefits as MFIP recipients; and 
 30.24     (3) if the applicant has not requested food support and 
 30.25  health care assistance on the application, the county agency 
 30.26  shall, during the interview process, talk with the applicant 
 30.27  about the availability of these benefits and inquire whether the 
 30.28  applicant wants to apply for these benefits.  If the applicant 
 30.29  does want to apply, the county agency shall assist the applicant 
 30.30  in completing the applicable application form or forms. 
 30.31     (b) The county shall follow section 256J.74, subdivision 2, 
 30.32  paragraph (b), clauses (1) and (2), when an applicant or a 
 30.33  recipient of DWP has a person who is a member of more than one 
 30.34  assistance unit in a given payment month. 
 30.35     (c) The county agency must determine eligibility for the 
 30.36  diversionary work program according to the provisions in section 
 31.1   256J.09, subdivisions 5 and 6.  A family unit whose application 
 31.2   is denied is eligible for a fair hearing under section 256J.40.  
 31.3      Subd. 7.  [VERIFICATION REQUIREMENTS.] (a) A county agency 
 31.4   must only require verification of information necessary to 
 31.5   determine DWP eligibility and the amount of the payment.  The 
 31.6   applicant or participant must document the information required 
 31.7   or authorize the county agency to verify the information.  The 
 31.8   applicant or participant has the burden of providing documentary 
 31.9   evidence to verify eligibility.  The county agency shall assist 
 31.10  the applicant or participant in obtaining required documents 
 31.11  when the applicant or participant is unable to do so. 
 31.12     (b) A county agency must not request information about an 
 31.13  applicant or participant that is not a matter of public record 
 31.14  from a source other than county agencies, the department of 
 31.15  human services, or the United States Department of Health and 
 31.16  Human Services without the person's prior written consent.  An 
 31.17  applicant's signature on an application form constitutes consent 
 31.18  for contact with the sources specified on the application.  A 
 31.19  county agency may use a single consent form to contact a group 
 31.20  of similar sources, but the sources to be contacted must be 
 31.21  identified by the county agency prior to requesting an 
 31.22  applicant's consent. 
 31.23     (c) Factors to be verified shall follow section 256J.32, 
 31.24  subdivision 4.  Family maintenance needs must be verified before 
 31.25  the expense can be allowed in the calculation of the DWP grant. 
 31.26     Subd. 8.  [PROPERTY AND INCOME LIMITATIONS.] The asset 
 31.27  limits and exclusions in section 256J.20, apply to applicants 
 31.28  and recipients of DWP.  All payments, unless excluded in section 
 31.29  256J.21, must be counted as income to determine eligibility for 
 31.30  the diversionary work program.  The county shall treat income as 
 31.31  outlined in section 256J.37, except for subdivision 3a.  The 
 31.32  initial income test and the disregards in section 256J.21, 
 31.33  subdivision 3, shall be followed for determining eligibility for 
 31.34  the diversionary work program. 
 31.35     Subd. 9.  [COOPERATION WITH PROGRAM REQUIREMENTS.] (a) To 
 31.36  be eligible for DWP, an applicant must comply with the 
 32.1   requirements of paragraphs (b) to (d). 
 32.2      (b) Applicants and participants must cooperate with the 
 32.3   requirements of the child support enforcement program, but will 
 32.4   not be charged a fee under section 518.551, subdivision 7. 
 32.5      (c) The applicant must provide each member of the family 
 32.6   unit's social security number to the county agency.  This 
 32.7   requirement is satisfied when each member of the family unit 
 32.8   cooperates with the procedures for verification of numbers, 
 32.9   issuance of duplicate cards, and issuance of new numbers which 
 32.10  have been established jointly between the Social Security 
 32.11  Administration and the commissioner. 
 32.12     (d) Before DWP benefits can be issued to a family unit, the 
 32.13  caregiver must, in conjunction with a job counselor, develop and 
 32.14  sign an employment plan.  In two-parent family units, both 
 32.15  parents must develop and sign employment plans before benefits 
 32.16  can be issued.  Food support and health care benefits are not 
 32.17  contingent on the requirement for a signed employment plan. 
 32.18     Subd. 10.  [DIVERSIONARY WORK PROGRAM GRANT.] (a) To 
 32.19  determine the amount of cash benefits that a family unit is 
 32.20  eligible for, the county agency shall evaluate the income of the 
 32.21  family unit that is requesting payments under the diversionary 
 32.22  work program.  Countable income means gross earned and unearned 
 32.23  income not excluded or disregarded under MFIP.  The same 
 32.24  disregards for earned income that are allowed under MFIP are 
 32.25  allowed for the diversionary work program. 
 32.26     (b) The DWP grant is the difference between (1) the family 
 32.27  unit's family maintenance needs plus the personal needs 
 32.28  allowance for each member of the family unit and (2) the family 
 32.29  unit's countable income, not to exceed the cash portion of the 
 32.30  MFIP standard of need as defined in section 256J.08, subdivision 
 32.31  55a, for the family unit's size.  For a family unit with earned 
 32.32  income, the DWP grant as calculated this in subdivision shall 
 32.33  not exceed the family wage level as defined in section 256J.08, 
 32.34  subdivision 35. 
 32.35     (c) Housing and utilities may be vendor paid.  Unless 
 32.36  otherwise stated in this section, actual housing and utility 
 33.1   expenses shall be used when determining the amount of the DWP 
 33.2   grant. 
 33.3      (d) Once the county has determined a grant amount, the DWP 
 33.4   grant amount will not be decreased if the determination is based 
 33.5   on the best information available at the time of approval and 
 33.6   shall not be decreased because of any additional income to the 
 33.7   family unit.  The grant can be increased if a participant later 
 33.8   verifies an increase in family maintenance needs or family unit 
 33.9   size.  The minimum cash benefit amount, if income and asset 
 33.10  tests are met, is $10.  Benefits of $10 shall not be vendor paid.
 33.11     (e) When all criteria are met, including the development of 
 33.12  an employment plan as described in subdivision 14 and 
 33.13  eligibility exists for the month of application, the amount of 
 33.14  benefits for the diversionary work program retroactive to the 
 33.15  date of application is as specified in section 256J.35, 
 33.16  paragraph (a). 
 33.17     (f) Any month during the four-month DWP period that a 
 33.18  person receives a DWP benefit directly or through a vendor 
 33.19  payment made on the person's behalf, that person is ineligible 
 33.20  for MFIP or any other TANF cash program except for benefits 
 33.21  defined in section 256.48. 
 33.22     If during the four-month DWP period a family unit that 
 33.23  receives diversionary work program benefits moves to a county 
 33.24  that has not established a diversionary work program, the family 
 33.25  unit may be eligible for MFIP the month following the last month 
 33.26  of the issuance of the DWP benefit. 
 33.27     Subd. 11.  [CONVERSION OR REFERRAL TO MFIP.] (a) If at any 
 33.28  time during the DWP application process or during the four-month 
 33.29  DWP eligibility period, it is determined that a participant is 
 33.30  unlikely to benefit from the diversionary work program, the 
 33.31  county shall convert or refer the participant to MFIP as 
 33.32  specified in paragraph (d).  Participants who meet the criteria 
 33.33  in paragraph (b) shall be considered to be unlikely to benefit 
 33.34  from DWP, provided the necessary documentation is available to 
 33.35  support the determination. 
 33.36     (b) A participant who: 
 34.1      (1) has been determined by a qualified professional as 
 34.2   being unable to obtain or retain employment due to an illness, 
 34.3   injury, or incapacity that is expected to last at least 30 days; 
 34.4      (2) is determined by a qualified professional as being 
 34.5   needed in the home to care for a family member due to an 
 34.6   illness, injury, or incapacity that is expected to last at least 
 34.7   30 days; 
 34.8      (3) is determined by a qualified professional as being 
 34.9   needed in the home to care for a child or an adult in the 
 34.10  household meeting the special medical criteria in section 
 34.11  256J.425, subdivision 2, clause (3); 
 34.12     (4) is pregnant and is determined by a qualified 
 34.13  professional as being unable to obtain or retain employment due 
 34.14  to the pregnancy; or 
 34.15     (5) has applied for SSI or RSDI. 
 34.16     (c) In a two-parent family unit, both parents must be 
 34.17  determined to be unlikely to benefit from the diversionary work 
 34.18  program before the family unit can be converted or referred to 
 34.19  MFIP. 
 34.20     (d) A participant who is determined to be unlikely to 
 34.21  benefit from the diversionary work program shall be converted to 
 34.22  MFIP.  If the determination is made within 30 days of the 
 34.23  initial application for benefits, a new combined application 
 34.24  form will not be required.  If the determination is made more 
 34.25  than 30 days after the initial application, the participant must 
 34.26  submit a new combined application form.  The county agency shall 
 34.27  process the combined application form by the first of the 
 34.28  following month to ensure that no gap in benefits is due to 
 34.29  delayed action by the county agency.  In processing the combined 
 34.30  application form, the county must follow section 256J.32, 
 34.31  subdivision 1, except that the county agency shall not require 
 34.32  additional verification of the information in the case file from 
 34.33  the diversionary work program application unless the information 
 34.34  in the case file is inaccurate, questionable, or no longer 
 34.35  current. 
 34.36     Subd. 12.  [IMMEDIATE REFERRAL TO EMPLOYMENT SERVICES.] 
 35.1   Within one working day of determination that the applicant is 
 35.2   eligible for the diversionary work program, but before benefits 
 35.3   are issued to or on behalf of the family unit, the county shall 
 35.4   refer all caregivers to employment services.  The referral to 
 35.5   the DWP employment services must be in writing and must contain 
 35.6   the following information: 
 35.7      (1) notification that, as part of the application process, 
 35.8   applicants are required to develop an employment plan or the DWP 
 35.9   application will be denied; 
 35.10     (2) the employment services provider name and phone number; 
 35.11     (3) the date, time, and location of the scheduled 
 35.12  employment services interview; 
 35.13     (4) the immediate availability of supportive services, 
 35.14  including, but not limited to, child care, transportation, and 
 35.15  other work-related aid; and 
 35.16     (5) the rights, responsibilities, and obligations of 
 35.17  participants in the program, including, but not limited to, the 
 35.18  grounds for converting or referring a participant to MFIP under 
 35.19  subdivision 12,, the consequences of refusing or failing to 
 35.20  participate fully with program requirements, the grounds for 
 35.21  good cause for failing to comply with program requirements as 
 35.22  defined in sections 256.741 and 256J.57, and the appeal process. 
 35.23     Subd. 13.  [EMPLOYMENT PLAN; DWP BENEFITS.] Within five 
 35.24  working days of being notified that a participant is financially 
 35.25  eligible for the diversionary work program, the employment 
 35.26  services provider and participant shall meet to develop an 
 35.27  employment plan.  Once the employment plan has been developed 
 35.28  and signed by the participant and the job counselor, the 
 35.29  employment services provider shall notify the county within one 
 35.30  working day that the employment plan has been signed.  The 
 35.31  county shall issue DWP benefits within one working day after 
 35.32  receiving notice that the employment plan has been signed. 
 35.33     Subd. 14.  [LIMITATIONS ON CERTAIN WORK ACTIVITIES.] (a) 
 35.34  Except as specified in paragraphs (b) to (d), employment 
 35.35  activities listed in section 256J.49, subdivision 13, are 
 35.36  allowable under the diversionary work program. 
 36.1      (b) Work activities under section 256J.49, subdivision 13, 
 36.2   clause (5), shall be allowable only when in combination with 
 36.3   approved work activities under section 256J.49, subdivision 13, 
 36.4   clauses (1) to (4), and shall be limited to no more than 
 36.5   one-half of the hours required in the employment plan. 
 36.6      (c) In order for an English as a second language (ESL) 
 36.7   class to be an approved work activity, a participant must: 
 36.8      (1) be below a spoken language proficiency level of SPL6 or 
 36.9   its equivalent, as measured by a nationally recognized test; and 
 36.10     (2) not have been enrolled in ESL for more than 24 months 
 36.11  while previously participating in MFIP or DWP.  A participant 
 36.12  who has been enrolled in ESL for 20 or more months may be 
 36.13  approved for ESL until the participant has received 24 total 
 36.14  months. 
 36.15     (d) Work activities under section 256J.49, subdivision 13, 
 36.16  clause (6), shall be allowable only when the training or 
 36.17  education program will be completed within the four-month DWP 
 36.18  period.  Training or education programs that will not be 
 36.19  completed within the four-month DWP period shall not be approved.
 36.20     Subd. 15.  [FAILURE TO COMPLY WITH REQUIREMENTS.] A family 
 36.21  unit that includes a participant who fails to comply with DWP 
 36.22  employment service or child support enforcement requirements, 
 36.23  without good cause as defined in sections 256.741 and 256J.57, 
 36.24  shall be disqualified from the diversionary work program.  The 
 36.25  county shall provide written notice as specified in section 
 36.26  256J.31 to the participant prior to disqualifying the family 
 36.27  unit due to noncompliance with employment service or child 
 36.28  support.  The disqualification does not apply to food support or 
 36.29  health care benefits. 
 36.30     Subd. 16.  [GOOD CAUSE FOR NOT COMPLYING WITH 
 36.31  REQUIREMENTS.] A participant who fails to comply with the 
 36.32  requirements of the diversionary work program may claim good 
 36.33  cause for reasons listed in sections 256.741 and 256J.57, 
 36.34  subdivision 1.  The county shall not impose a disqualification 
 36.35  if good cause exists. 
 36.36     Subd. 17.  [REINSTATEMENT FOLLOWING DISQUALIFICATION.] A 
 37.1   participant who has been disqualified from the diversionary work 
 37.2   program due to noncompliance with employment services may regain 
 37.3   eligibility for the diversionary work program by complying with 
 37.4   program requirements.  A participant who has been disqualified 
 37.5   from the diversionary work program due to noncooperation with 
 37.6   child support enforcement requirements may regain eligibility by 
 37.7   complying with child support requirements under section 
 37.8   256J.741.  Once a participant has been reinstated, the county 
 37.9   shall issue prorated benefits for the remaining portion of the 
 37.10  month.  A family unit that has been disqualified from the 
 37.11  diversionary work program due to noncompliance shall not be 
 37.12  eligible for MFIP or any other TANF cash program during the 
 37.13  period of time the participant remains noncompliant.  In a 
 37.14  two-parent family, both parents must be in compliance before the 
 37.15  family unit can regain eligibility for benefits. 
 37.16     Subd. 18.  [RECOVERY OF OVERPAYMENTS.] When an overpayment 
 37.17  or an ATM error is determined, the overpayment shall be recouped 
 37.18  or recovered as specified in section 256J.38. 
 37.19     Subd. 19.  [IMPLEMENTATION OF DWP.] Counties may establish 
 37.20  a diversionary work program according to this section any time 
 37.21  on or after July 1, 2003.  Prior to establishing a diversionary 
 37.22  work program, the county must notify the commissioner.  All 
 37.23  counties must implement the provisions of this section no later 
 37.24  than July 1, 2004. 
 37.25     Sec. 28.  Minnesota Statutes 2002, section 393.07, 
 37.26  subdivision 10, is amended to read: 
 37.27     Subd. 10.  [FEDERAL FOOD STAMP PROGRAM AND THE MATERNAL AND 
 37.28  CHILD NUTRITION ACT.] (a) The local social services agency shall 
 37.29  establish and administer the food stamp or support program 
 37.30  according to rules of the commissioner of human services, the 
 37.31  supervision of the commissioner as specified in section 256.01, 
 37.32  and all federal laws and regulations.  The commissioner of human 
 37.33  services shall monitor food stamp or support program delivery on 
 37.34  an ongoing basis to ensure that each county complies with 
 37.35  federal laws and regulations.  Program requirements to be 
 37.36  monitored include, but are not limited to, number of 
 38.1   applications, number of approvals, number of cases pending, 
 38.2   length of time required to process each application and deliver 
 38.3   benefits, number of applicants eligible for expedited issuance, 
 38.4   length of time required to process and deliver expedited 
 38.5   issuance, number of terminations and reasons for terminations, 
 38.6   client profiles by age, household composition and income level 
 38.7   and sources, and the use of phone certification and home 
 38.8   visits.  The commissioner shall determine the county-by-county 
 38.9   and statewide participation rate.  
 38.10     (b) On July 1 of each year, the commissioner of human 
 38.11  services shall determine a statewide and county-by-county food 
 38.12  stamp program participation rate.  The commissioner may 
 38.13  designate a different agency to administer the food stamp 
 38.14  program in a county if the agency administering the program 
 38.15  fails to increase the food stamp program participation rate 
 38.16  among families or eligible individuals, or comply with all 
 38.17  federal laws and regulations governing the food stamp program.  
 38.18  The commissioner shall review agency performance annually to 
 38.19  determine compliance with this paragraph. 
 38.20     (c) A person who commits any of the following acts has 
 38.21  violated section 256.98 or 609.821, or both, and is subject to 
 38.22  both the criminal and civil penalties provided under those 
 38.23  sections: 
 38.24     (1) obtains or attempts to obtain, or aids or abets any 
 38.25  person to obtain by means of a willful statement or 
 38.26  misrepresentation, or intentional concealment of a material 
 38.27  fact, food stamps or vouchers issued according to sections 
 38.28  145.891 to 145.897 to which the person is not entitled or in an 
 38.29  amount greater than that to which that person is entitled or 
 38.30  which specify nutritional supplements to which that person is 
 38.31  not entitled; or 
 38.32     (2) presents or causes to be presented, coupons or vouchers 
 38.33  issued according to sections 145.891 to 145.897 for payment or 
 38.34  redemption knowing them to have been received, transferred or 
 38.35  used in a manner contrary to existing state or federal law; or 
 38.36     (3) willfully uses, possesses, or transfers food stamp 
 39.1   coupons, authorization to purchase cards or vouchers issued 
 39.2   according to sections 145.891 to 145.897 in any manner contrary 
 39.3   to existing state or federal law, rules, or regulations; or 
 39.4      (4) buys or sells food stamp coupons, authorization to 
 39.5   purchase cards, other assistance transaction devices, vouchers 
 39.6   issued according to sections 145.891 to 145.897, or any food 
 39.7   obtained through the redemption of vouchers issued according to 
 39.8   sections 145.891 to 145.897 for cash or consideration other than 
 39.9   eligible food. 
 39.10     (d) A peace officer or welfare fraud investigator may 
 39.11  confiscate food stamps, authorization to purchase cards, or 
 39.12  other assistance transaction devices found in the possession of 
 39.13  any person who is neither a recipient of the food stamp program 
 39.14  nor otherwise authorized to possess and use such materials.  
 39.15  Confiscated property shall be disposed of as the commissioner 
 39.16  may direct and consistent with state and federal food stamp 
 39.17  law.  The confiscated property must be retained for a period of 
 39.18  not less than 30 days to allow any affected person to appeal the 
 39.19  confiscation under section 256.045. 
 39.20     (e) Food stamp overpayment claims which are due in whole or 
 39.21  in part to client error shall be established by the county 
 39.22  agency for a period of six years from the date of any resultant 
 39.23  overpayment.  
 39.24     (f) With regard to the federal tax revenue offset program 
 39.25  only, recovery incentives authorized by the federal food and 
 39.26  consumer service shall be retained at the rate of 50 percent by 
 39.27  the state agency and 50 percent by the certifying county agency. 
 39.28     (g) A peace officer, welfare fraud investigator, federal 
 39.29  law enforcement official, or the commissioner of health may 
 39.30  confiscate vouchers found in the possession of any person who is 
 39.31  neither issued vouchers under sections 145.891 to 145.897, nor 
 39.32  otherwise authorized to possess and use such vouchers.  
 39.33  Confiscated property shall be disposed of as the commissioner of 
 39.34  health may direct and consistent with state and federal law.  
 39.35  The confiscated property must be retained for a period of not 
 39.36  less than 30 days. 
 40.1      Sec. 29.  [REPEALER.] 
 40.2      (a) Minnesota Statutes 2002, sections 256J.08, subdivision 
 40.3   70; 256J.425, subdivision 7; and 256J.47, are repealed. 
 40.4      (b) Laws 1997, chapter 203, article 9, section 21, as 
 40.5   amended by Laws 1998, chapter 407, article 6, section 111, Laws 
 40.6   2000, chapter 488, article 10, section 28, and Laws 2001, First 
 40.7   Special Session chapter 9, article 10, section 62; and Laws 
 40.8   2000, chapter 488, article 10, section 29, are repealed. 
 40.9                              ARTICLE 2
 40.10                            HEALTH CARE
 40.11     Section 1.  Minnesota Statutes 2002, section 13.461, is 
 40.12  amended by adding a subdivision to read: 
 40.13     Subd. 1a.  [WHOLESALE DRUG DISTRIBUTOR REPORTS.] Pricing 
 40.14  information reported to the commissioner of human services is 
 40.15  defined as trade secret information under section 151.47, 
 40.16  subdivision 1, paragraph (g). 
 40.17     Sec. 2.  Minnesota Statutes 2002, section 62J.692, 
 40.18  subdivision 8, is amended to read: 
 40.19     Subd. 8.  [FEDERAL FINANCIAL PARTICIPATION.] (a) The 
 40.20  commissioner of human services shall seek to maximize federal 
 40.21  financial participation in payments for medical education and 
 40.22  research costs.  If the commissioner of human services 
 40.23  determines that federal financial participation is available for 
 40.24  the medical education and research, the commissioner of health 
 40.25  shall transfer to the commissioner of human services the amount 
 40.26  of state funds necessary to maximize the federal funds 
 40.27  available.  The amount transferred to the commissioner of human 
 40.28  services, plus the amount of federal financial participation, 
 40.29  shall be distributed to medical assistance providers in 
 40.30  accordance with the distribution methodology described in 
 40.31  subdivision 4. 
 40.32     (b) For the purposes of paragraph (a), the commissioner 
 40.33  shall use physician clinic rates where possible to maximize 
 40.34  federal financial participation. 
 40.35     Sec. 3.  Minnesota Statutes 2002, section 151.47, 
 40.36  subdivision 1, is amended to read: 
 41.1      Subdivision 1.  [REQUIREMENTS.] All wholesale drug 
 41.2   distributors are subject to the requirements in paragraphs (a) 
 41.3   to (f) (g).  
 41.4      (a) No person or distribution outlet shall act as a 
 41.5   wholesale drug distributor without first obtaining a license 
 41.6   from the board and paying the required fee. 
 41.7      (b) No license shall be issued or renewed for a wholesale 
 41.8   drug distributor to operate unless the applicant agrees to 
 41.9   operate in a manner prescribed by federal and state law and 
 41.10  according to the rules adopted by the board. 
 41.11     (c) The board may require a separate license for each 
 41.12  facility directly or indirectly owned or operated by the same 
 41.13  business entity within the state, or for a parent entity with 
 41.14  divisions, subsidiaries, or affiliate companies within the 
 41.15  state, when operations are conducted at more than one location 
 41.16  and joint ownership and control exists among all the entities. 
 41.17     (d) As a condition for receiving and retaining a wholesale 
 41.18  drug distributor license issued under sections 151.42 to 151.51, 
 41.19  an applicant shall satisfy the board that it has complied with 
 41.20  paragraph (g) and that it has and will continuously maintain: 
 41.21     (1) adequate storage conditions and facilities; 
 41.22     (2) minimum liability and other insurance as may be 
 41.23  required under any applicable federal or state law; 
 41.24     (3) a viable security system that includes an after hours 
 41.25  central alarm, or comparable entry detection capability; 
 41.26  restricted access to the premises; comprehensive employment 
 41.27  applicant screening; and safeguards against all forms of 
 41.28  employee theft; 
 41.29     (4) a system of records describing all wholesale drug 
 41.30  distributor activities set forth in section 151.44 for at least 
 41.31  the most recent two-year period, which shall be reasonably 
 41.32  accessible as defined by board regulations in any inspection 
 41.33  authorized by the board; 
 41.34     (5) principals and persons, including officers, directors, 
 41.35  primary shareholders, and key management executives, who must at 
 41.36  all times demonstrate and maintain their capability of 
 42.1   conducting business in conformity with sound financial practices 
 42.2   as well as state and federal law; 
 42.3      (6) complete, updated information, to be provided to the 
 42.4   board as a condition for obtaining and retaining a license, 
 42.5   about each wholesale drug distributor to be licensed, including 
 42.6   all pertinent corporate licensee information, if applicable, or 
 42.7   other ownership, principal, key personnel, and facilities 
 42.8   information found to be necessary by the board; 
 42.9      (7) written policies and procedures that assure reasonable 
 42.10  wholesale drug distributor preparation for, protection against, 
 42.11  and handling of any facility security or operation problems, 
 42.12  including, but not limited to, those caused by natural disaster 
 42.13  or government emergency, inventory inaccuracies or product 
 42.14  shipping and receiving, outdated product or other unauthorized 
 42.15  product control, appropriate disposition of returned goods, and 
 42.16  product recalls; 
 42.17     (8) sufficient inspection procedures for all incoming and 
 42.18  outgoing product shipments; and 
 42.19     (9) operations in compliance with all federal requirements 
 42.20  applicable to wholesale drug distribution. 
 42.21     (e) An agent or employee of any licensed wholesale drug 
 42.22  distributor need not seek licensure under this section. 
 42.23     (f) A wholesale drug distributor shall file with the board 
 42.24  an annual report, in a form and on the date prescribed by the 
 42.25  board, identifying all payments, honoraria, reimbursement or 
 42.26  other compensation authorized under section 151.461, clauses (3) 
 42.27  to (5), paid to practitioners in Minnesota during the preceding 
 42.28  calendar year.  The report shall identify the nature and value 
 42.29  of any payments totaling $100 or more, to a particular 
 42.30  practitioner during the year, and shall identify the 
 42.31  practitioner.  Reports filed under this provision are public 
 42.32  data. 
 42.33     (g) Manufacturers shall, on a quarterly basis, report by 
 42.34  National Drug Code the following pharmaceutical pricing criteria 
 42.35  to the board and the commissioner of human services for each of 
 42.36  their drugs:  average wholesale price, wholesale acquisition 
 43.1   cost, average manufacturer price as defined in United States 
 43.2   Code, title 42, chapter 7, subchapter XIX, section 1396r-8(k), 
 43.3   and best price as defined in United States Code, title 42, 
 43.4   chapter 7, subchapter XIX, section 1396r-8(c)(1)(C).  The 
 43.5   calculation of average wholesale price and wholesale acquisition 
 43.6   cost shall be the net of all volume discounts, prompt payment 
 43.7   discounts, chargebacks, short-dated product discounts, cash 
 43.8   discounts, free goods, rebates, and all other price concessions 
 43.9   or incentives provided to a purchaser that result in a reduction 
 43.10  in the ultimate cost to the purchaser.  When reporting average 
 43.11  wholesale price, wholesale acquisition cost, average 
 43.12  manufacturer price, and best price, manufacturers shall also 
 43.13  include a detailed description of the methodology by which the 
 43.14  prices were calculated.  When a manufacturer reports average 
 43.15  wholesale price, wholesale acquisition cost, average 
 43.16  manufacturer price, or best price, the president or chief 
 43.17  executive officer of the manufacturer shall certify to the 
 43.18  Medicaid program, on a form provided by the commissioner of 
 43.19  human services, that the reported prices are accurate.  
 43.20  Information reported under this paragraph is trade secret 
 43.21  information for purposes of section 13.37.  
 43.22     Sec. 4.  Minnesota Statutes 2002, section 256.01, 
 43.23  subdivision 2, is amended to read: 
 43.24     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
 43.25  section 241.021, subdivision 2, the commissioner of human 
 43.26  services shall: 
 43.27     (1) Administer and supervise all forms of public assistance 
 43.28  provided for by state law and other welfare activities or 
 43.29  services as are vested in the commissioner.  Administration and 
 43.30  supervision of human services activities or services includes, 
 43.31  but is not limited to, assuring timely and accurate distribution 
 43.32  of benefits, completeness of service, and quality program 
 43.33  management.  In addition to administering and supervising human 
 43.34  services activities vested by law in the department, the 
 43.35  commissioner shall have the authority to: 
 43.36     (a) require county agency participation in training and 
 44.1   technical assistance programs to promote compliance with 
 44.2   statutes, rules, federal laws, regulations, and policies 
 44.3   governing human services; 
 44.4      (b) monitor, on an ongoing basis, the performance of county 
 44.5   agencies in the operation and administration of human services, 
 44.6   enforce compliance with statutes, rules, federal laws, 
 44.7   regulations, and policies governing welfare services and promote 
 44.8   excellence of administration and program operation; 
 44.9      (c) develop a quality control program or other monitoring 
 44.10  program to review county performance and accuracy of benefit 
 44.11  determinations; 
 44.12     (d) require county agencies to make an adjustment to the 
 44.13  public assistance benefits issued to any individual consistent 
 44.14  with federal law and regulation and state law and rule and to 
 44.15  issue or recover benefits as appropriate; 
 44.16     (e) delay or deny payment of all or part of the state and 
 44.17  federal share of benefits and administrative reimbursement 
 44.18  according to the procedures set forth in section 256.017; 
 44.19     (f) make contracts with and grants to public and private 
 44.20  agencies and organizations, both profit and nonprofit, and 
 44.21  individuals, using appropriated funds; and 
 44.22     (g) enter into contractual agreements with federally 
 44.23  recognized Indian tribes with a reservation in Minnesota to the 
 44.24  extent necessary for the tribe to operate a federally approved 
 44.25  family assistance program or any other program under the 
 44.26  supervision of the commissioner.  The commissioner shall consult 
 44.27  with the affected county or counties in the contractual 
 44.28  agreement negotiations, if the county or counties wish to be 
 44.29  included, in order to avoid the duplication of county and tribal 
 44.30  assistance program services.  The commissioner may establish 
 44.31  necessary accounts for the purposes of receiving and disbursing 
 44.32  funds as necessary for the operation of the programs. 
 44.33     (2) Inform county agencies, on a timely basis, of changes 
 44.34  in statute, rule, federal law, regulation, and policy necessary 
 44.35  to county agency administration of the programs. 
 44.36     (3) Administer and supervise all child welfare activities; 
 45.1   promote the enforcement of laws protecting handicapped, 
 45.2   dependent, neglected and delinquent children, and children born 
 45.3   to mothers who were not married to the children's fathers at the 
 45.4   times of the conception nor at the births of the children; 
 45.5   license and supervise child-caring and child-placing agencies 
 45.6   and institutions; supervise the care of children in boarding and 
 45.7   foster homes or in private institutions; and generally perform 
 45.8   all functions relating to the field of child welfare now vested 
 45.9   in the state board of control. 
 45.10     (4) Administer and supervise all noninstitutional service 
 45.11  to handicapped persons, including those who are visually 
 45.12  impaired, hearing impaired, or physically impaired or otherwise 
 45.13  handicapped.  The commissioner may provide and contract for the 
 45.14  care and treatment of qualified indigent children in facilities 
 45.15  other than those located and available at state hospitals when 
 45.16  it is not feasible to provide the service in state hospitals. 
 45.17     (5) Assist and actively cooperate with other departments, 
 45.18  agencies and institutions, local, state, and federal, by 
 45.19  performing services in conformity with the purposes of Laws 
 45.20  1939, chapter 431. 
 45.21     (6) Act as the agent of and cooperate with the federal 
 45.22  government in matters of mutual concern relative to and in 
 45.23  conformity with the provisions of Laws 1939, chapter 431, 
 45.24  including the administration of any federal funds granted to the 
 45.25  state to aid in the performance of any functions of the 
 45.26  commissioner as specified in Laws 1939, chapter 431, and 
 45.27  including the promulgation of rules making uniformly available 
 45.28  medical care benefits to all recipients of public assistance, at 
 45.29  such times as the federal government increases its participation 
 45.30  in assistance expenditures for medical care to recipients of 
 45.31  public assistance, the cost thereof to be borne in the same 
 45.32  proportion as are grants of aid to said recipients. 
 45.33     (7) Establish and maintain any administrative units 
 45.34  reasonably necessary for the performance of administrative 
 45.35  functions common to all divisions of the department. 
 45.36     (8) Act as designated guardian of both the estate and the 
 46.1   person of all the wards of the state of Minnesota, whether by 
 46.2   operation of law or by an order of court, without any further 
 46.3   act or proceeding whatever, except as to persons committed as 
 46.4   mentally retarded.  For children under the guardianship of the 
 46.5   commissioner whose interests would be best served by adoptive 
 46.6   placement, the commissioner may contract with a licensed 
 46.7   child-placing agency or a Minnesota tribal social services 
 46.8   agency to provide adoption services.  A contract with a licensed 
 46.9   child-placing agency must be designed to supplement existing 
 46.10  county efforts and may not replace existing county programs, 
 46.11  unless the replacement is agreed to by the county board and the 
 46.12  appropriate exclusive bargaining representative or the 
 46.13  commissioner has evidence that child placements of the county 
 46.14  continue to be substantially below that of other counties.  
 46.15  Funds encumbered and obligated under an agreement for a specific 
 46.16  child shall remain available until the terms of the agreement 
 46.17  are fulfilled or the agreement is terminated. 
 46.18     (9) Act as coordinating referral and informational center 
 46.19  on requests for service for newly arrived immigrants coming to 
 46.20  Minnesota. 
 46.21     (10) The specific enumeration of powers and duties as 
 46.22  hereinabove set forth shall in no way be construed to be a 
 46.23  limitation upon the general transfer of powers herein contained. 
 46.24     (11) Establish county, regional, or statewide schedules of 
 46.25  maximum fees and charges which may be paid by county agencies 
 46.26  for medical, dental, surgical, hospital, nursing and nursing 
 46.27  home care and medicine and medical supplies under all programs 
 46.28  of medical care provided by the state and for congregate living 
 46.29  care under the income maintenance programs. 
 46.30     (12) Have the authority to conduct and administer 
 46.31  experimental projects to test methods and procedures of 
 46.32  administering assistance and services to recipients or potential 
 46.33  recipients of public welfare.  To carry out such experimental 
 46.34  projects, it is further provided that the commissioner of human 
 46.35  services is authorized to waive the enforcement of existing 
 46.36  specific statutory program requirements, rules, and standards in 
 47.1   one or more counties.  The order establishing the waiver shall 
 47.2   provide alternative methods and procedures of administration, 
 47.3   shall not be in conflict with the basic purposes, coverage, or 
 47.4   benefits provided by law, and in no event shall the duration of 
 47.5   a project exceed four years.  It is further provided that no 
 47.6   order establishing an experimental project as authorized by the 
 47.7   provisions of this section shall become effective until the 
 47.8   following conditions have been met: 
 47.9      (a) The secretary of health and human services of the 
 47.10  United States has agreed, for the same project, to waive state 
 47.11  plan requirements relative to statewide uniformity. 
 47.12     (b) A comprehensive plan, including estimated project 
 47.13  costs, shall be approved by the legislative advisory commission 
 47.14  and filed with the commissioner of administration.  
 47.15     (13) According to federal requirements, establish 
 47.16  procedures to be followed by local welfare boards in creating 
 47.17  citizen advisory committees, including procedures for selection 
 47.18  of committee members. 
 47.19     (14) Allocate federal fiscal disallowances or sanctions 
 47.20  which are based on quality control error rates for the aid to 
 47.21  families with dependent children program formerly codified in 
 47.22  sections 256.72 to 256.87, medical assistance, or food stamp 
 47.23  program in the following manner:  
 47.24     (a) One-half of the total amount of the disallowance shall 
 47.25  be borne by the county boards responsible for administering the 
 47.26  programs.  For the medical assistance and the AFDC program 
 47.27  formerly codified in sections 256.72 to 256.87, disallowances 
 47.28  shall be shared by each county board in the same proportion as 
 47.29  that county's expenditures for the sanctioned program are to the 
 47.30  total of all counties' expenditures for the AFDC program 
 47.31  formerly codified in sections 256.72 to 256.87, and medical 
 47.32  assistance programs.  For the food stamp program, sanctions 
 47.33  shall be shared by each county board, with 50 percent of the 
 47.34  sanction being distributed to each county in the same proportion 
 47.35  as that county's administrative costs for food stamps are to the 
 47.36  total of all food stamp administrative costs for all counties, 
 48.1   and 50 percent of the sanctions being distributed to each county 
 48.2   in the same proportion as that county's value of food stamp 
 48.3   benefits issued are to the total of all benefits issued for all 
 48.4   counties.  Each county shall pay its share of the disallowance 
 48.5   to the state of Minnesota.  When a county fails to pay the 
 48.6   amount due hereunder, the commissioner may deduct the amount 
 48.7   from reimbursement otherwise due the county, or the attorney 
 48.8   general, upon the request of the commissioner, may institute 
 48.9   civil action to recover the amount due. 
 48.10     (b) Notwithstanding the provisions of paragraph (a), if the 
 48.11  disallowance results from knowing noncompliance by one or more 
 48.12  counties with a specific program instruction, and that knowing 
 48.13  noncompliance is a matter of official county board record, the 
 48.14  commissioner may require payment or recover from the county or 
 48.15  counties, in the manner prescribed in paragraph (a), an amount 
 48.16  equal to the portion of the total disallowance which resulted 
 48.17  from the noncompliance, and may distribute the balance of the 
 48.18  disallowance according to paragraph (a).  
 48.19     (15) Develop and implement special projects that maximize 
 48.20  reimbursements and result in the recovery of money to the 
 48.21  state.  For the purpose of recovering state money, the 
 48.22  commissioner may enter into contracts with third parties.  Any 
 48.23  recoveries that result from projects or contracts entered into 
 48.24  under this paragraph shall be deposited in the state treasury 
 48.25  and credited to a special account until the balance in the 
 48.26  account reaches $1,000,000.  When the balance in the account 
 48.27  exceeds $1,000,000, the excess shall be transferred and credited 
 48.28  to the general fund.  All money in the account is appropriated 
 48.29  to the commissioner for the purposes of this paragraph. 
 48.30     (16) Have the authority to make direct payments to 
 48.31  facilities providing shelter to women and their children 
 48.32  according to section 256D.05, subdivision 3.  Upon the written 
 48.33  request of a shelter facility that has been denied payments 
 48.34  under section 256D.05, subdivision 3, the commissioner shall 
 48.35  review all relevant evidence and make a determination within 30 
 48.36  days of the request for review regarding issuance of direct 
 49.1   payments to the shelter facility.  Failure to act within 30 days 
 49.2   shall be considered a determination not to issue direct payments.
 49.3      (17) Have the authority to establish and enforce the 
 49.4   following county reporting requirements:  
 49.5      (a) The commissioner shall establish fiscal and statistical 
 49.6   reporting requirements necessary to account for the expenditure 
 49.7   of funds allocated to counties for human services programs.  
 49.8   When establishing financial and statistical reporting 
 49.9   requirements, the commissioner shall evaluate all reports, in 
 49.10  consultation with the counties, to determine if the reports can 
 49.11  be simplified or the number of reports can be reduced. 
 49.12     (b) The county board shall submit monthly or quarterly 
 49.13  reports to the department as required by the commissioner.  
 49.14  Monthly reports are due no later than 15 working days after the 
 49.15  end of the month.  Quarterly reports are due no later than 30 
 49.16  calendar days after the end of the quarter, unless the 
 49.17  commissioner determines that the deadline must be shortened to 
 49.18  20 calendar days to avoid jeopardizing compliance with federal 
 49.19  deadlines or risking a loss of federal funding.  Only reports 
 49.20  that are complete, legible, and in the required format shall be 
 49.21  accepted by the commissioner.  
 49.22     (c) If the required reports are not received by the 
 49.23  deadlines established in clause (b), the commissioner may delay 
 49.24  payments and withhold funds from the county board until the next 
 49.25  reporting period.  When the report is needed to account for the 
 49.26  use of federal funds and the late report results in a reduction 
 49.27  in federal funding, the commissioner shall withhold from the 
 49.28  county boards with late reports an amount equal to the reduction 
 49.29  in federal funding until full federal funding is received.  
 49.30     (d) A county board that submits reports that are late, 
 49.31  illegible, incomplete, or not in the required format for two out 
 49.32  of three consecutive reporting periods is considered 
 49.33  noncompliant.  When a county board is found to be noncompliant, 
 49.34  the commissioner shall notify the county board of the reason the 
 49.35  county board is considered noncompliant and request that the 
 49.36  county board develop a corrective action plan stating how the 
 50.1   county board plans to correct the problem.  The corrective 
 50.2   action plan must be submitted to the commissioner within 45 days 
 50.3   after the date the county board received notice of noncompliance.
 50.4      (e) The final deadline for fiscal reports or amendments to 
 50.5   fiscal reports is one year after the date the report was 
 50.6   originally due.  If the commissioner does not receive a report 
 50.7   by the final deadline, the county board forfeits the funding 
 50.8   associated with the report for that reporting period and the 
 50.9   county board must repay any funds associated with the report 
 50.10  received for that reporting period. 
 50.11     (f) The commissioner may not delay payments, withhold 
 50.12  funds, or require repayment under paragraph (c) or (e) if the 
 50.13  county demonstrates that the commissioner failed to provide 
 50.14  appropriate forms, guidelines, and technical assistance to 
 50.15  enable the county to comply with the requirements.  If the 
 50.16  county board disagrees with an action taken by the commissioner 
 50.17  under paragraph (c) or (e), the county board may appeal the 
 50.18  action according to sections 14.57 to 14.69. 
 50.19     (g) Counties subject to withholding of funds under 
 50.20  paragraph (c) or forfeiture or repayment of funds under 
 50.21  paragraph (e) shall not reduce or withhold benefits or services 
 50.22  to clients to cover costs incurred due to actions taken by the 
 50.23  commissioner under paragraph (c) or (e). 
 50.24     (18) Allocate federal fiscal disallowances or sanctions for 
 50.25  audit exceptions when federal fiscal disallowances or sanctions 
 50.26  are based on a statewide random sample for the foster care 
 50.27  program under title IV-E of the Social Security Act, United 
 50.28  States Code, title 42, in direct proportion to each county's 
 50.29  title IV-E foster care maintenance claim for that period. 
 50.30     (19) Be responsible for ensuring the detection, prevention, 
 50.31  investigation, and resolution of fraudulent activities or 
 50.32  behavior by applicants, recipients, and other participants in 
 50.33  the human services programs administered by the department. 
 50.34     (20) Require county agencies to identify overpayments, 
 50.35  establish claims, and utilize all available and cost-beneficial 
 50.36  methodologies to collect and recover these overpayments in the 
 51.1   human services programs administered by the department. 
 51.2      (21) Have the authority to administer a drug rebate program 
 51.3   for drugs purchased pursuant to the prescription drug program 
 51.4   established under section 256.955 after the beneficiary's 
 51.5   satisfaction of any deductible established in the program.  The 
 51.6   commissioner shall require a rebate agreement from all 
 51.7   manufacturers of covered drugs as defined in section 256B.0625, 
 51.8   subdivision 13.  Rebate agreements for prescription drugs 
 51.9   delivered on or after July 1, 2002, must include rebates for 
 51.10  individuals covered under the prescription drug program who are 
 51.11  under 65 years of age.  For each drug, the amount of the rebate 
 51.12  shall be equal to the basic rebate as defined for purposes of 
 51.13  the federal rebate program in United States Code, title 42, 
 51.14  section 1396r-8(c)(1).  This basic rebate shall be applied to 
 51.15  single-source and multiple-source drugs.  The manufacturers must 
 51.16  provide full payment within 30 days of receipt of the state 
 51.17  invoice for the rebate within the terms and conditions used for 
 51.18  the federal rebate program established pursuant to section 1927 
 51.19  of title XIX of the Social Security Act.  The manufacturers must 
 51.20  provide the commissioner with any information necessary to 
 51.21  verify the rebate determined per drug.  The rebate program shall 
 51.22  utilize the terms and conditions used for the federal rebate 
 51.23  program established pursuant to section 1927 of title XIX of the 
 51.24  Social Security Act. 
 51.25     (22) Have the authority to administer the federal drug 
 51.26  rebate program for drugs purchased under the medical assistance 
 51.27  program as allowed by section 1927 of title XIX of the Social 
 51.28  Security Act and according to the terms and conditions of 
 51.29  section 1927.  Rebates shall be collected for all drugs that 
 51.30  have been dispensed or administered in an outpatient setting and 
 51.31  that are from manufacturers who have signed a rebate agreement 
 51.32  with the United States Department of Health and Human Services. 
 51.33     (23) Have the authority to administer a supplemental drug 
 51.34  rebate program for drugs purchased under the medical assistance 
 51.35  program.  The commissioner may enter into supplemental rebate 
 51.36  contracts with pharmaceutical manufacturers and may require 
 52.1   prior authorization for drugs that are from manufacturers that 
 52.2   have not signed a supplemental rebate contract.  Prior 
 52.3   authorization of drugs shall be subject to the provisions of 
 52.4   section 256B.0625, subdivision 13.  The commissioner shall 
 52.5   evaluate whether participation in a multistate preferred drug 
 52.6   list and supplemental rebate program reduces costs or improves 
 52.7   the operations of the medical assistance program.  The 
 52.8   commissioner may enter into a contract with a vendor or other 
 52.9   states for the purposes of participating in a multistate 
 52.10  preferred drug list and supplemental rebate program.  
 52.11     (24) Operate the department's communication systems account 
 52.12  established in Laws 1993, First Special Session chapter 1, 
 52.13  article 1, section 2, subdivision 2, to manage shared 
 52.14  communication costs necessary for the operation of the programs 
 52.15  the commissioner supervises.  A communications account may also 
 52.16  be established for each regional treatment center which operates 
 52.17  communications systems.  Each account must be used to manage 
 52.18  shared communication costs necessary for the operations of the 
 52.19  programs the commissioner supervises.  The commissioner may 
 52.20  distribute the costs of operating and maintaining communication 
 52.21  systems to participants in a manner that reflects actual usage. 
 52.22  Costs may include acquisition, licensing, insurance, 
 52.23  maintenance, repair, staff time and other costs as determined by 
 52.24  the commissioner.  Nonprofit organizations and state, county, 
 52.25  and local government agencies involved in the operation of 
 52.26  programs the commissioner supervises may participate in the use 
 52.27  of the department's communications technology and share in the 
 52.28  cost of operation.  The commissioner may accept on behalf of the 
 52.29  state any gift, bequest, devise or personal property of any 
 52.30  kind, or money tendered to the state for any lawful purpose 
 52.31  pertaining to the communication activities of the department.  
 52.32  Any money received for this purpose must be deposited in the 
 52.33  department's communication systems accounts.  Money collected by 
 52.34  the commissioner for the use of communication systems must be 
 52.35  deposited in the state communication systems account and is 
 52.36  appropriated to the commissioner for purposes of this section. 
 53.1      (25) Receive any federal matching money that is made 
 53.2   available through the medical assistance program for the 
 53.3   consumer satisfaction survey.  Any federal money received for 
 53.4   the survey is appropriated to the commissioner for this 
 53.5   purpose.  The commissioner may expend the federal money received 
 53.6   for the consumer satisfaction survey in either year of the 
 53.7   biennium. 
 53.8      (26) Incorporate cost reimbursement claims from First Call 
 53.9   Minnesota and Greater Twin Cities United Way into the federal 
 53.10  cost reimbursement claiming processes of the department 
 53.11  according to federal law, rule, and regulations.  Any 
 53.12  reimbursement received is appropriated to the commissioner and 
 53.13  shall be disbursed to First Call Minnesota and Greater Twin 
 53.14  Cities United Way according to normal department payment 
 53.15  schedules. 
 53.16     (27) Develop recommended standards for foster care homes 
 53.17  that address the components of specialized therapeutic services 
 53.18  to be provided by foster care homes with those services.  
 53.19     Sec. 5.  Minnesota Statutes 2002, section 256.955, 
 53.20  subdivision 2a, is amended to read: 
 53.21     Subd. 2a.  [ELIGIBILITY.] An individual satisfying the 
 53.22  following requirements and the requirements described in 
 53.23  subdivision 2, paragraph (d), is eligible for the prescription 
 53.24  drug program: 
 53.25     (1) is at least 65 years of age or older; and 
 53.26     (2) is eligible as a qualified Medicare beneficiary 
 53.27  according to section 256B.057, subdivision 3, or 3a, or 3b, 
 53.28  clause (1), or is eligible under section 256B.057, subdivision 
 53.29  3, or 3a, or 3b, clause (1), and is also eligible for medical 
 53.30  assistance or general assistance medical care with a spenddown 
 53.31  as defined in section 256B.056, subdivision 5. 
 53.32     Sec. 6.  Minnesota Statutes 2002, section 256.9685, is 
 53.33  amended by adding a subdivision to read: 
 53.34     Subd. 3.  [LIMITATION ON PAYMENTS TO OUT-OF-STATE 
 53.35  PROVIDERS.] Payments under medical assistance, MinnesotaCare, 
 53.36  and general assistance medical care are prohibited to hospitals 
 54.1   located outside of Minnesota except under the following 
 54.2   circumstances: 
 54.3      (1) in cases of emergency.  For purposes of this 
 54.4   subdivision, "emergency" means a condition that if not 
 54.5   immediately treated could cause a person serious physical or 
 54.6   mental disability, continuation of severe pain, or death.  Labor 
 54.7   and delivery is an emergency if it meets this definition; 
 54.8      (2) when not receiving care outside of Minnesota would 
 54.9   endanger the health of the recipient; 
 54.10     (3) when care is more readily available in another state; 
 54.11  and 
 54.12     (4) when the local trade area includes a portion of another 
 54.13  state. 
 54.14     Sec. 7.  Minnesota Statutes 2002, section 256.969, 
 54.15  subdivision 2b, is amended to read: 
 54.16     Subd. 2b.  [OPERATING PAYMENT RATES.] (a) In determining 
 54.17  operating payment rates for admissions occurring on or after the 
 54.18  rate year beginning January 1, 1991, and every two years after, 
 54.19  or more frequently as determined by the commissioner, the 
 54.20  commissioner shall obtain operating data from an updated base 
 54.21  year and establish operating payment rates per admission for 
 54.22  each hospital based on the cost-finding methods and allowable 
 54.23  costs of the Medicare program in effect during the base year.  
 54.24  Rates under the general assistance medical care, medical 
 54.25  assistance, and MinnesotaCare programs shall not be rebased to 
 54.26  more current data on January 1, 1997.  The base year operating 
 54.27  payment rate per admission is standardized by the case mix index 
 54.28  and adjusted by the hospital cost index, relative values, and 
 54.29  disproportionate population adjustment.  The cost and charge 
 54.30  data used to establish operating rates shall only reflect 
 54.31  inpatient services covered by medical assistance and shall not 
 54.32  include property cost information and costs recognized in 
 54.33  outlier payments. 
 54.34     (b) The rebasing of rates scheduled to occur on January 1, 
 54.35  2005, shall be postponed until January 1, 2006.  The rebasing of 
 54.36  rates scheduled to occur on January 1, 2007, shall be 
 55.1   implemented as scheduled.  
 55.2      Sec. 8.  Minnesota Statutes 2002, section 256.969, 
 55.3   subdivision 3a, is amended to read: 
 55.4      Subd. 3a.  [PAYMENTS.] (a) Acute care hospital billings 
 55.5   under the medical assistance program must not be submitted until 
 55.6   the recipient is discharged.  However, the commissioner shall 
 55.7   establish monthly interim payments for inpatient hospitals that 
 55.8   have individual patient lengths of stay over 30 days regardless 
 55.9   of diagnostic category.  Except as provided in section 256.9693, 
 55.10  medical assistance reimbursement for treatment of mental illness 
 55.11  shall be reimbursed based on diagnostic classifications.  
 55.12  Individual hospital payments established under this section and 
 55.13  sections 256.9685, 256.9686, and 256.9695, in addition to third 
 55.14  party and recipient liability, for discharges occurring during 
 55.15  the rate year shall not exceed, in aggregate, the charges for 
 55.16  the medical assistance covered inpatient services paid for the 
 55.17  same period of time to the hospital.  This payment limitation 
 55.18  shall be calculated separately for medical assistance and 
 55.19  general assistance medical care services.  The limitation on 
 55.20  general assistance medical care shall be effective for 
 55.21  admissions occurring on or after July 1, 1991.  Services that 
 55.22  have rates established under subdivision 11 or 12, must be 
 55.23  limited separately from other services.  After consulting with 
 55.24  the affected hospitals, the commissioner may consider related 
 55.25  hospitals one entity and may merge the payment rates while 
 55.26  maintaining separate provider numbers.  The operating and 
 55.27  property base rates per admission or per day shall be derived 
 55.28  from the best Medicare and claims data available when rates are 
 55.29  established.  The commissioner shall determine the best Medicare 
 55.30  and claims data, taking into consideration variables of recency 
 55.31  of the data, audit disposition, settlement status, and the 
 55.32  ability to set rates in a timely manner.  The commissioner shall 
 55.33  notify hospitals of payment rates by December 1 of the year 
 55.34  preceding the rate year.  The rate setting data must reflect the 
 55.35  admissions data used to establish relative values.  Base year 
 55.36  changes from 1981 to the base year established for the rate year 
 56.1   beginning January 1, 1991, and for subsequent rate years, shall 
 56.2   not be limited to the limits ending June 30, 1987, on the 
 56.3   maximum rate of increase under subdivision 1.  The commissioner 
 56.4   may adjust base year cost, relative value, and case mix index 
 56.5   data to exclude the costs of services that have been 
 56.6   discontinued by the October 1 of the year preceding the rate 
 56.7   year or that are paid separately from inpatient services.  
 56.8   Inpatient stays that encompass portions of two or more rate 
 56.9   years shall have payments established based on payment rates in 
 56.10  effect at the time of admission unless the date of admission 
 56.11  preceded the rate year in effect by six months or more.  In this 
 56.12  case, operating payment rates for services rendered during the 
 56.13  rate year in effect and established based on the date of 
 56.14  admission shall be adjusted to the rate year in effect by the 
 56.15  hospital cost index. 
 56.16     (b) For fee-for-service admissions occurring on or after 
 56.17  July 1, 2002, the total payment, before third-party liability 
 56.18  and spenddown, made to hospitals for inpatient services is 
 56.19  reduced by .5 percent from the current statutory rates.  
 56.20     (c) In addition to the reduction in paragraph (b), the 
 56.21  total payment for fee-for-service admissions occurring on or 
 56.22  after July 1, 2003, made to hospitals for inpatient services 
 56.23  before third-party liability and spenddown, is reduced five 
 56.24  percent from the current statutory rates.  Mental health 
 56.25  services within diagnosis related groups 424 to 432, and 
 56.26  facilities defined under subdivision 16 are excluded from this 
 56.27  paragraph. 
 56.28     Sec. 9.  Minnesota Statutes 2002, section 256.975, is 
 56.29  amended by adding a subdivision to read: 
 56.30     Subd. 9.  [PRESCRIPTION DRUG ASSISTANCE.] The Minnesota 
 56.31  board on aging shall establish and administer a prescription 
 56.32  drug assistance program to assist individuals in accessing 
 56.33  programs offered by pharmaceutical manufacturers that provide 
 56.34  free or discounted prescription drugs or provide coverage for 
 56.35  prescription drugs.  The board shall use computer software 
 56.36  programs to: 
 57.1      (1) list eligibility requirements for pharmaceutical 
 57.2   assistance programs offered by manufacturers; 
 57.3      (2) list drugs that are included in a supplemental rebate 
 57.4   contract between the commissioner and a pharmaceutical 
 57.5   manufacturer under section 256.01, subdivision 2, clause (23); 
 57.6   and 
 57.7      (3) link individuals with the pharmaceutical assistance 
 57.8   programs most appropriate for the individual.  The board shall 
 57.9   make information on the prescription drug assistance program 
 57.10  available to interested individuals and health care providers 
 57.11  and shall coordinate the program with the statewide information 
 57.12  and assistance service provided through the Senior LinkAge Line 
 57.13  under subdivision 7. 
 57.14     Sec. 10.  Minnesota Statutes 2002, section 256B.056, 
 57.15  subdivision 1a, is amended to read: 
 57.16     Subd. 1a.  [INCOME AND ASSETS GENERALLY.] Unless 
 57.17  specifically required by state law or rule or federal law or 
 57.18  regulation, the methodologies used in counting income and assets 
 57.19  to determine eligibility for medical assistance for persons 
 57.20  whose eligibility category is based on blindness, disability, or 
 57.21  age of 65 or more years, the methodologies for the supplemental 
 57.22  security income program shall be used.  Increases in benefits 
 57.23  under title II of the Social Security Act shall not be counted 
 57.24  as income for purposes of this subdivision until July 1 of each 
 57.25  year.  Effective upon federal approval, for children eligible 
 57.26  under section 256B.055, subdivision 12, or for home and 
 57.27  community-based waiver services whose eligibility for medical 
 57.28  assistance is determined without regard to parental income, 
 57.29  child support payments, including any payments made by an 
 57.30  obligor in satisfaction of or in addition to a temporary or 
 57.31  permanent order for child support, and social security payments 
 57.32  are not counted as income.  For families and children, which 
 57.33  includes all other eligibility categories, the methodologies 
 57.34  under the state's AFDC plan in effect as of July 16, 1996, as 
 57.35  required by the Personal Responsibility and Work Opportunity 
 57.36  Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 
 58.1   shall be used, except that effective July 1, 2002, the $90 and 
 58.2   $30 and one-third earned income disregards shall not apply and 
 58.3   the disregard specified in subdivision 1c shall apply July 1, 
 58.4   2003, the earned income disregards and deductions are limited to 
 58.5   those in subdivision 1c.  For these purposes, a "methodology" 
 58.6   does not include an asset or income standard, or accounting 
 58.7   method, or method of determining effective dates. 
 58.8      Sec. 11.  Minnesota Statutes 2002, section 256B.056, 
 58.9   subdivision 1c, is amended to read: 
 58.10     Subd. 1c.  [FAMILIES WITH CHILDREN INCOME METHODOLOGY.] 
 58.11  (a)(1) For children ages one to five whose eligibility is 
 58.12  determined under section 256B.057, subdivision 2, 21 percent of 
 58.13  countable earned income shall be disregarded for up to four 
 58.14  months.  This clause expires July 1, 2003.  
 58.15     (2) For children ages one through 18 whose eligibility is 
 58.16  determined under section 256B.057, subdivision 2, the following 
 58.17  deductions shall be applied to income counted toward the child's 
 58.18  eligibility as allowed under the state's AFDC plan in effect as 
 58.19  of July 16, 1996; $90 work expense, dependent care, and child 
 58.20  support paid under court order.  This clause is effective July 
 58.21  1, 2003.  
 58.22     (b) For families with children whose eligibility is 
 58.23  determined using the standard specified in section 256B.056, 
 58.24  subdivision 4, paragraph (c), 17 percent of countable earned 
 58.25  income shall be disregarded for up to four months and the 
 58.26  following deductions shall be applied to each individual's 
 58.27  income counted toward eligibility as allowed under the state's 
 58.28  AFDC plan in effect as of July 16, 1996:  dependent care and 
 58.29  child support paid under court order. 
 58.30     (c) If the disregard four-month disregard in paragraph (b) 
 58.31  has been applied to the wage earner's income for four months, 
 58.32  the disregard shall not be applied again until the wage earner's 
 58.33  income has not been considered in determining medical assistance 
 58.34  eligibility for 12 consecutive months.  
 58.35     <b>[EFFECTIVE DATE.]</b> The amendments to paragraphs (b) and (c) 
 58.36  are effective July 1, 2003. 
 59.1      Sec. 12.  Minnesota Statutes 2002, section 256B.057, 
 59.2   subdivision 1, is amended to read: 
 59.3      Subdivision 1.  [PREGNANT WOMEN AND INFANTS.] (a) An infant 
 59.4   less than one year of age or a pregnant woman who has written 
 59.5   verification of a positive pregnancy test from a physician or 
 59.6   licensed registered nurse, is eligible for medical assistance if 
 59.7   countable family income is equal to or less than 275 percent of 
 59.8   the federal poverty guideline for the same family size.  For 
 59.9   purposes of this subdivision, "countable family income" means 
 59.10  the amount of income considered available using the methodology 
 59.11  of the AFDC program under the state's AFDC plan as of July 16, 
 59.12  1996, as required by the Personal Responsibility and Work 
 59.13  Opportunity Reconciliation Act of 1996 (PRWORA), Public 
 59.14  Law Number 104-193, except for the earned income disregard and 
 59.15  employment deductions. 
 59.16     An amount equal to the amount of earned income exceeding 
 59.17  275 percent of the federal poverty guideline, up to a maximum of 
 59.18  the amount by which the combined total of 185 percent of the 
 59.19  federal poverty guideline plus the earned income disregards and 
 59.20  deductions of the AFDC program under the state's AFDC plan as of 
 59.21  July 16, 1996, as required by the Personal Responsibility and 
 59.22  Work Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 
 59.23  Number 104-193, exceeds 275 percent of the federal poverty 
 59.24  guideline will be deducted for pregnant women and infants less 
 59.25  than one year of age.  
 59.26     (b) An infant born on or after January 1, 1991, to a woman 
 59.27  who was eligible for and receiving medical assistance on the 
 59.28  date of the child's birth shall continue to be eligible for 
 59.29  medical assistance without redetermination until the child's 
 59.30  first birthday, as long as the child remains in the woman's 
 59.31  household. 
 59.32     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 59.33     Sec. 13.  Minnesota Statutes 2002, section 256B.057, 
 59.34  subdivision 1b, is amended to read: 
 59.35     Subd. 1b.  [PREGNANT WOMEN AND INFANTS; EXPANSION.] (a) 
 59.36  This subdivision supersedes subdivision 1 as long as the 
 60.1   Minnesota health care reform waiver remains in effect.  When the 
 60.2   waiver expires, the commissioner of human services shall publish 
 60.3   a notice in the State Register and notify the revisor of 
 60.4   statutes.  An infant less than two years of age or a pregnant 
 60.5   woman who has written verification of a positive pregnancy test 
 60.6   from a physician or licensed registered nurse, is eligible for 
 60.7   medical assistance if countable family income is equal to or 
 60.8   less than 275 percent of the federal poverty guideline for the 
 60.9   same family size.  For purposes of this subdivision, "countable 
 60.10  family income" means the amount of income considered available 
 60.11  using the methodology of the AFDC program under the state's AFDC 
 60.12  plan as of July 16, 1996, as required by the Personal 
 60.13  Responsibility and Work Opportunity Reconciliation Act of 1996 
 60.14  (PRWORA), Public Law Number 104-193, except for the earned 
 60.15  income disregard and employment deductions.  An amount equal to 
 60.16  the amount of earned income exceeding 275 percent of the federal 
 60.17  poverty guideline, up to a maximum of the amount by which the 
 60.18  combined total of 185 percent of the federal poverty guideline 
 60.19  plus the earned income disregards and deductions of the AFDC 
 60.20  program under the state's AFDC plan as of July 16, 1996, as 
 60.21  required by the Personal Responsibility and Work Opportunity 
 60.22  Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 
 60.23  exceeds 275 percent of the federal poverty guideline will be 
 60.24  deducted for pregnant women and infants less than two years of 
 60.25  age.  
 60.26     (b) An infant born on or after January 1, 1991, to a woman 
 60.27  who was eligible for and receiving medical assistance on the 
 60.28  date of the child's birth shall continue to be eligible for 
 60.29  medical assistance without redetermination until the child's 
 60.30  second birthday, as long as the child remains in the woman's 
 60.31  household. 
 60.32     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 60.33     Sec. 14.  Minnesota Statutes 2002, section 256B.057, 
 60.34  subdivision 2, is amended to read: 
 60.35     Subd. 2.  [CHILDREN.] Except as specified in subdivision 
 60.36  1b, effective July 1, 2002 2003, a child one through 18 years of 
 61.1   age in a family whose countable income is no greater than 170 
 61.2   150 percent of the federal poverty guidelines for the same 
 61.3   family size, is eligible for medical assistance. 
 61.4      Sec. 15.  Minnesota Statutes 2002, section 256B.057, 
 61.5   subdivision 3b, is amended to read: 
 61.6      Subd. 3b.  [QUALIFYING INDIVIDUALS.] Beginning July 1, 
 61.7   1998, to the extent of the federal allocation to Minnesota 
 61.8   contingent upon federal funding, a person who would otherwise be 
 61.9   eligible as a qualified Medicare beneficiary under subdivision 
 61.10  3, except that the person's income is in excess of the limit, is 
 61.11  eligible as a qualifying individual according to the following 
 61.12  criteria: 
 61.13     (1) if the person's income is greater than 120 percent, but 
 61.14  less than 135 percent of the official federal poverty guidelines 
 61.15  for the applicable family size, the person is eligible for 
 61.16  medical assistance reimbursement of Medicare Part B premiums; or 
 61.17     (2) if the person's income is equal to or greater than 135 
 61.18  percent but less than 175 percent of the official federal 
 61.19  poverty guidelines for the applicable family size, the person is 
 61.20  eligible for medical assistance reimbursement of that portion of 
 61.21  the Medicare Part B premium attributable to an increase in Part 
 61.22  B expenditures which resulted from the shift of home care 
 61.23  services from Medicare Part A to Medicare Part B under Public 
 61.24  Law Number 105-33, section 4732, the Balanced Budget Act of 1997.
 61.25     The commissioner shall limit enrollment of qualifying 
 61.26  individuals under this subdivision according to the requirements 
 61.27  of Public Law Number 105-33, section 4732. 
 61.28     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 61.29     Sec. 16.  Minnesota Statutes 2002, section 256B.057, 
 61.30  subdivision 9, is amended to read: 
 61.31     Subd. 9.  [EMPLOYED PERSONS WITH DISABILITIES.] (a) Medical 
 61.32  assistance may be paid for a person who is employed and who: 
 61.33     (1) meets the definition of disabled under the supplemental 
 61.34  security income program; 
 61.35     (2) is at least 16 but less than 65 years of age; 
 61.36     (3) meets the asset limits in paragraph (b); and 
 62.1      (4) effective November 1, 2003, pays a premium, if as 
 62.2   required, under paragraph (c) (d).  
 62.3   Any spousal income or assets shall be disregarded for purposes 
 62.4   of eligibility and premium determinations. 
 62.5      After the month of enrollment, a person enrolled in medical 
 62.6   assistance under this subdivision who: 
 62.7      (1) is temporarily unable to work and without receipt of 
 62.8   earned income due to a medical condition, as verified by a 
 62.9   physician, may retain eligibility for up to four calendar 
 62.10  months; or 
 62.11     (2) effective January 1, 2004, loses employment for reasons 
 62.12  not attributable to the enrollee, may retain eligibility for up 
 62.13  to four consecutive months after the month of job loss.  To 
 62.14  receive a four-month extension, enrollees must verify the 
 62.15  medical condition or provide notification of job loss.  All 
 62.16  other eligibility requirements must be met and the enrollee must 
 62.17  pay all calculated premium costs for continued eligibility. 
 62.18     (b) For purposes of determining eligibility under this 
 62.19  subdivision, a person's assets must not exceed $20,000, 
 62.20  excluding: 
 62.21     (1) all assets excluded under section 256B.056; 
 62.22     (2) retirement accounts, including individual accounts, 
 62.23  401(k) plans, 403(b) plans, Keogh plans, and pension plans; and 
 62.24     (3) medical expense accounts set up through the person's 
 62.25  employer. 
 62.26     (c)(1) Effective January 1, 2004, for purposes of 
 62.27  eligibility, there will be a $65 earned income disregard.  To be 
 62.28  eligible, a person applying for medical assistance under this 
 62.29  subdivision must have earned income above the disregard level. 
 62.30     (2) Effective January 1, 2004, to be considered earned 
 62.31  income, Medicare, social security, and applicable state and 
 62.32  federal income taxes must be withheld.  To be eligible, a person 
 62.33  must document earned income tax withholding. 
 62.34     (d)(1) A person whose earned and unearned income is equal 
 62.35  to or greater than 100 percent of federal poverty guidelines for 
 62.36  the applicable family size must pay a premium to be eligible for 
 63.1   medical assistance under this subdivision.  The premium shall be 
 63.2   based on the person's gross earned and unearned income and the 
 63.3   applicable family size using a sliding fee scale established by 
 63.4   the commissioner, which begins at one percent of income at 100 
 63.5   percent of the federal poverty guidelines and increases to 7.5 
 63.6   percent of income for those with incomes at or above 300 percent 
 63.7   of the federal poverty guidelines.  Annual adjustments in the 
 63.8   premium schedule based upon changes in the federal poverty 
 63.9   guidelines shall be effective for premiums due in July of each 
 63.10  year.  
 63.11     (2) Effective January 1, 2004, all enrollees must pay a 
 63.12  premium to be eligible for medical assistance under this 
 63.13  subdivision.  An enrollee shall pay the greater of a $35 premium 
 63.14  or the premium calculated in clause (1). 
 63.15     (d) (e) A person's eligibility and premium shall be 
 63.16  determined by the local county agency.  Premiums must be paid to 
 63.17  the commissioner.  All premiums are dedicated to the 
 63.18  commissioner. 
 63.19     (e) (f) Any required premium shall be determined at 
 63.20  application and redetermined annually at recertification at the 
 63.21  enrollee's six-month income review or when a change in income or 
 63.22  family household size occurs is reported.  Enrollees must report 
 63.23  any change in income or household size within ten days of when 
 63.24  the change occurs.  A decreased premium resulting from a 
 63.25  reported change in income or household size shall be effective 
 63.26  the first day of the next available billing month after the 
 63.27  change is reported.  Except for changes occurring from annual 
 63.28  cost-of-living increases or verification of income under section 
 63.29  256B.061, paragraph (b), a change resulting in an increased 
 63.30  premium shall not affect the premium amount until the next 
 63.31  six-month review. 
 63.32     (f) (g) Premium payment is due upon notification from the 
 63.33  commissioner of the premium amount required.  Premiums may be 
 63.34  paid in installments at the discretion of the commissioner. 
 63.35     (g) (h) Nonpayment of the premium shall result in denial or 
 63.36  termination of medical assistance unless the person demonstrates 
 64.1   good cause for nonpayment.  Good cause exists if the 
 64.2   requirements specified in Minnesota Rules, part 9506.0040, 
 64.3   subpart 7, items B to D, are met.  Except when an installment 
 64.4   agreement is accepted by the commissioner, all persons 
 64.5   disenrolled for nonpayment of a premium must pay any past due 
 64.6   premiums as well as current premiums due prior to being 
 64.7   reenrolled.  Nonpayment shall include payment with a returned, 
 64.8   refused, or dishonored instrument.  The commissioner may require 
 64.9   a guaranteed form of payment as the only means to replace a 
 64.10  returned, refused, or dishonored instrument. 
 64.11     <b>[EFFECTIVE DATE.]</b> This section is effective November 1, 
 64.12  2003, except the amendments to Minnesota Statutes 2002, section 
 64.13  256B.057, subdivision 9, paragraphs (f) and (h), are effective 
 64.14  July 1, 2003. 
 64.15     Sec. 17.  Minnesota Statutes 2002, section 256B.061, is 
 64.16  amended to read: 
 64.17     256B.061 [ELIGIBILITY; RETROACTIVE EFFECT; RESTRICTIONS.] 
 64.18     (a) If any individual has been determined to be eligible 
 64.19  for medical assistance, it will be made available for care and 
 64.20  services included under the plan and furnished in or after the 
 64.21  third month before the month in which the individual made 
 64.22  application for such assistance, if such individual was, or upon 
 64.23  application would have been, eligible for medical assistance at 
 64.24  the time the care and services were furnished.  The commissioner 
 64.25  may limit, restrict, or suspend the eligibility of an individual 
 64.26  for up to one year upon that individual's conviction of a 
 64.27  criminal offense related to application for or receipt of 
 64.28  medical assistance benefits. 
 64.29     (b) On the basis of information provided on the completed 
 64.30  application, an applicant who meets the following criteria shall 
 64.31  be determined eligible beginning in the month of application: 
 64.32     (1) whose gross income is less than 90 percent of the 
 64.33  applicable income standard; 
 64.34     (2) whose total liquid assets are less than 90 percent of 
 64.35  the asset limit; 
 64.36     (3) does not reside in a long-term care facility; and 
 65.1      (4) meets all other eligibility requirements. 
 65.2   The applicant must provide all required verifications within 30 
 65.3   days' notice of the eligibility determination or eligibility 
 65.4   shall be terminated. 
 65.5      <b>[EFFECTIVE DATE.]</b> This section is repealed April 1, 2005, 
 65.6   if the HealthMatch system is operational.  If the HealthMatch 
 65.7   system is not operational, this section is effective July 1, 
 65.8   2005. 
 65.9      Sec. 18.  Minnesota Statutes 2002, section 256B.0625, 
 65.10  subdivision 9, is amended to read: 
 65.11     Subd. 9.  [DENTAL SERVICES.] Medical assistance covers 
 65.12  dental services.  Dental services include, with prior 
 65.13  authorization, fixed bridges that are cost-effective for persons 
 65.14  who cannot use removable dentures because of their medical 
 65.15  condition.  Payments for dental services covered under medical 
 65.16  assistance that are provided by a licensed denturist shall be 80 
 65.17  percent of the rate paid to a licensed dentist.  A licensed 
 65.18  denturist may only provide services that are within the scope of 
 65.19  practice of the denturist's license as defined in chapter 150B. 
 65.20     Sec. 19.  Minnesota Statutes 2002, section 256B.0625, 
 65.21  subdivision 13, is amended to read: 
 65.22     Subd. 13.  [DRUGS.] (a) Medical assistance covers drugs, 
 65.23  except for fertility drugs when specifically used to enhance 
 65.24  fertility, if prescribed by a licensed practitioner and 
 65.25  dispensed by a licensed pharmacist, by a physician enrolled in 
 65.26  the medical assistance program as a dispensing physician, or by 
 65.27  a physician or a nurse practitioner employed by or under 
 65.28  contract with a community health board as defined in section 
 65.29  145A.02, subdivision 5, for the purposes of communicable disease 
 65.30  control.  
 65.31     (b) The commissioner, after receiving recommendations from 
 65.32  professional medical associations and professional 
 65.33  pharmacist pharmacy associations, shall designate a formulary 
 65.34  committee to advise the commissioner on the names of drugs for 
 65.35  which payment is made, recommend a system for reimbursing 
 65.36  providers on a set fee or charge basis rather than the present 
 66.1   system, and develop methods encouraging use of generic drugs 
 66.2   when they are less expensive and equally effective as trademark 
 66.3   drugs.  The formulary committee shall consist of nine members, 
 66.4   four of whom shall be physicians who are not employed by the 
 66.5   department of human services, and a majority of whose practice 
 66.6   is for persons paying privately or through health insurance, 
 66.7   three of whom shall be pharmacists who are not employed by the 
 66.8   department of human services, and a majority of whose practice 
 66.9   is for persons paying privately or through health insurance, a 
 66.10  consumer representative, and a nursing home representative carry 
 66.11  out duties as described in this subdivision.  The formulary 
 66.12  committee shall be comprised of four licensed physicians 
 66.13  actively engaged in the practice of medicine in Minnesota one of 
 66.14  whom must be actively engaged in the treatment of persons with 
 66.15  mental illness; at least three licensed pharmacists actively 
 66.16  engaged in the practice of pharmacy in Minnesota; and one 
 66.17  consumer representative; the remainder to be made up of health 
 66.18  care professionals who are licensed in their field and have 
 66.19  recognized knowledge in the clinically appropriate prescribing, 
 66.20  dispensing, and monitoring of covered outpatient drugs.  Members 
 66.21  of the formulary committee shall not be employed by the 
 66.22  department of human services.  Committee members shall serve 
 66.23  three-year terms and shall serve without compensation.  Members 
 66.24  may be reappointed once by the commissioner.  The formulary 
 66.25  committee shall meet at least quarterly.  The commissioner may 
 66.26  require more frequent formulary committee meetings as needed.  
 66.27  An honorarium of $100 per meeting and reimbursement for mileage 
 66.28  shall be paid to each committee member in attendance.  
 66.29     (b) (c) The commissioner shall establish a drug formulary.  
 66.30  Its establishment and publication shall not be subject to the 
 66.31  requirements of the Administrative Procedure Act, but the 
 66.32  formulary committee shall review and comment on the formulary 
 66.33  contents.  
 66.34     The formulary shall not include:  
 66.35     (i) drugs or products for which there is no federal 
 66.36  funding; 
 67.1      (ii) over-the-counter drugs, except for antacids, 
 67.2   acetaminophen, family planning products, aspirin, insulin, 
 67.3   products for the treatment of lice, vitamins for adults with 
 67.4   documented vitamin deficiencies, vitamins for children under the 
 67.5   age of seven and pregnant or nursing women, and any other 
 67.6   over-the-counter drug identified by the commissioner, in 
 67.7   consultation with the drug formulary committee, as necessary, 
 67.8   appropriate, and cost-effective for the treatment of certain 
 67.9   specified chronic diseases, conditions or disorders, and this 
 67.10  determination shall not be subject to the requirements of 
 67.11  chapter 14 as provided in paragraph (g); 
 67.12     (iii) anorectics, except that medically necessary 
 67.13  anorectics shall be covered for a recipient previously diagnosed 
 67.14  as having pickwickian syndrome and currently diagnosed as having 
 67.15  diabetes and being morbidly obese drugs used for weight loss; 
 67.16     (iv) drugs for which medical value has not been 
 67.17  established; and 
 67.18     (v) drugs from manufacturers who have not signed a rebate 
 67.19  agreement with the Department of Health and Human Services 
 67.20  pursuant to section 1927 of title XIX of the Social Security Act.
 67.21     The commissioner shall publish conditions for prohibiting 
 67.22  payment for specific drugs after considering the formulary 
 67.23  committee's recommendations.  An honorarium of $100 per meeting 
 67.24  and reimbursement for mileage shall be paid to each committee 
 67.25  member in attendance.  
 67.26     (d) Prior authorization may be required by the commissioner 
 67.27  before certain formulary drugs are eligible for payment.  The 
 67.28  formulary committee may recommend drugs for prior authorization 
 67.29  directly to the commissioner.  The commissioner may also request 
 67.30  that the formulary committee review a drug for prior 
 67.31  authorization.  Before the commissioner may require prior 
 67.32  authorization for a drug: 
 67.33     (1) the commissioner must provide information to the 
 67.34  formulary committee on the impact that placing the drug on prior 
 67.35  authorization may have on the quality of patient care and on 
 67.36  program costs, information regarding whether the drug is subject 
 68.1   to clinical abuse or misuse, and relevant data from the state 
 68.2   Medicaid program if such data is available; 
 68.3      (2) the formulary committee must review the drug, taking 
 68.4   into account medical and clinical data and the information 
 68.5   provided by the commissioner; and 
 68.6      (3) the formulary committee must hold a public forum and 
 68.7   receive public comment for an additional 15 days. 
 68.8   The commissioner must provide a 15-day notice period before 
 68.9   implementing the prior authorization.  
 68.10     (c) (e) The dispensed quantity of a prescribed drug must 
 68.11  not exceed a 30-day supply.  The basis for determining the 
 68.12  amount of payment shall be the lower of the actual acquisition 
 68.13  costs of the drugs plus a fixed dispensing fee; the maximum 
 68.14  allowable cost set by the federal government or by the 
 68.15  commissioner plus the fixed dispensing fee; or the usual and 
 68.16  customary price charged to the public.  The amount of payment 
 68.17  basis must be reduced to reflect all discount amounts applied to 
 68.18  the charge by any provider/insurer agreement or contract for 
 68.19  submitted charges to medical assistance programs.  The net 
 68.20  submitted charge may not be greater than the patient liability 
 68.21  for the service.  The pharmacy dispensing fee shall be $3.65, 
 68.22  except that the dispensing fee for intravenous solutions which 
 68.23  must be compounded by the pharmacist shall be $8 per bag, $14 
 68.24  per bag for cancer chemotherapy products, and $30 per bag for 
 68.25  total parenteral nutritional products dispensed in one liter 
 68.26  quantities, or $44 per bag for total parenteral nutritional 
 68.27  products dispensed in quantities greater than one liter.  Actual 
 68.28  acquisition cost includes quantity and other special discounts 
 68.29  except time and cash discounts.  The actual acquisition cost of 
 68.30  a drug shall be estimated by the commissioner, at average 
 68.31  wholesale price minus nine 14 percent, except that where a drug 
 68.32  has had its wholesale price reduced as a result of the actions 
 68.33  of the National Association of Medicaid Fraud Control Units, the 
 68.34  estimated actual acquisition cost shall be the reduced average 
 68.35  wholesale price, without the nine 14 percent deduction.  The 
 68.36  maximum allowable cost of a multisource drug may be set by the 
 69.1   commissioner and it shall be comparable to, but no higher than, 
 69.2   the maximum amount paid by other third-party payors in this 
 69.3   state who have maximum allowable cost programs.  The 
 69.4   commissioner shall set maximum allowable costs for multisource 
 69.5   drugs that are not on the federal upper limit list as described 
 69.6   in United States Code, title 42, chapter 7, section 1396r-8(e), 
 69.7   the Social Security Act, and Code of Federal Regulations, title 
 69.8   42, part 447, section 447.332.  Establishment of the amount of 
 69.9   payment for drugs shall not be subject to the requirements of 
 69.10  the Administrative Procedure Act.  An additional dispensing fee 
 69.11  of $.30 may be added to the dispensing fee paid to pharmacists 
 69.12  for legend drug prescriptions dispensed to residents of 
 69.13  long-term care facilities when a unit dose blister card system, 
 69.14  approved by the department, is used.  Under this type of 
 69.15  dispensing system, the pharmacist must dispense a 30-day supply 
 69.16  of drug.  The National Drug Code (NDC) from the drug container 
 69.17  used to fill the blister card must be identified on the claim to 
 69.18  the department.  The unit dose blister card containing the drug 
 69.19  must meet the packaging standards set forth in Minnesota Rules, 
 69.20  part 6800.2700, that govern the return of unused drugs to the 
 69.21  pharmacy for reuse.  The pharmacy provider will be required to 
 69.22  credit the department for the actual acquisition cost of all 
 69.23  unused drugs that are eligible for reuse.  Over-the-counter 
 69.24  medications must be dispensed in the manufacturer's unopened 
 69.25  package.  The commissioner may permit the drug clozapine to be 
 69.26  dispensed in a quantity that is less than a 30-day supply.  
 69.27  Whenever a generically equivalent product is available, payment 
 69.28  shall be on the basis of the actual acquisition cost of the 
 69.29  generic drug, unless the prescriber specifically indicates 
 69.30  "dispense as written - brand necessary" on the prescription as 
 69.31  required by section 151.21, subdivision 2. 
 69.32     (d) For purposes of this subdivision, "multisource drugs" 
 69.33  means covered outpatient drugs, excluding innovator multisource 
 69.34  drugs for which there are two or more drug products, which: 
 69.35     (1) are related as therapeutically equivalent under the 
 69.36  Food and Drug Administration's most recent publication of 
 70.1   "Approved Drug Products with Therapeutic Equivalence 
 70.2   Evaluations"; or on the maximum allowable cost established by 
 70.3   the commissioner.  The commissioner may require prior 
 70.4   authorization for brand-name drugs whenever a generically 
 70.5   equivalent product is available even if the prescriber 
 70.6   specifically indicates "dispense as written - brand necessary" 
 70.7   on the prescription as required by section 151.21, subdivision 
 70.8   2.  The formulary committee shall establish general criteria to 
 70.9   be used for the prior authorization of brand-name drugs for 
 70.10  which generically equivalent drugs are available, but formulary 
 70.11  committee review of each brand-name drug for which a generically 
 70.12  equivalent drug is available shall not be required.  
 70.13     (2) are pharmaceutically equivalent and bioequivalent as 
 70.14  determined by the Food and Drug Administration; and 
 70.15     (3) are sold or marketed in Minnesota. 
 70.16  "Innovator multisource drug" means a multisource drug that was 
 70.17  originally marketed under an original new drug application 
 70.18  approved by the Food and Drug Administration. 
 70.19     (e) The formulary committee shall review and recommend 
 70.20  drugs which require prior authorization.  The formulary 
 70.21  committee may recommend drugs for prior authorization directly 
 70.22  to the commissioner, as long as opportunity for public input is 
 70.23  provided.  Prior authorization may be requested by the 
 70.24  commissioner based on medical and clinical criteria and on cost 
 70.25  before certain drugs are eligible for payment.  Before a drug 
 70.26  may be considered for prior authorization at the request of the 
 70.27  commissioner: 
 70.28     (1) the drug formulary committee must develop criteria to 
 70.29  be used for identifying drugs; the development of these criteria 
 70.30  is not subject to the requirements of chapter 14, but the 
 70.31  formulary committee shall provide opportunity for public input 
 70.32  in developing criteria; 
 70.33     (2) the drug formulary committee must hold a public forum 
 70.34  and receive public comment for an additional 15 days; 
 70.35     (3) the drug formulary committee must consider data from 
 70.36  the state Medicaid program if such data is available; and 
 71.1      (4) the commissioner must provide information to the 
 71.2   formulary committee on the impact that placing the drug on prior 
 71.3   authorization will have on the quality of patient care and on 
 71.4   program costs, and information regarding whether the drug is 
 71.5   subject to clinical abuse or misuse.  
 71.6      Prior authorization may be required by the commissioner 
 71.7   before certain formulary drugs are eligible for payment.  If 
 71.8   prior authorization of a drug is required by the commissioner, 
 71.9   the commissioner must provide a 30-day notice period before 
 71.10  implementing the prior authorization.  If a prior authorization 
 71.11  request is denied by the department, the recipient may appeal 
 71.12  the denial in accordance with section 256.045.  If an appeal is 
 71.13  filed, the drug must be provided without prior authorization 
 71.14  until a decision is made on the appeal.  
 71.15     (f) The basis for determining the amount of payment for 
 71.16  drugs administered in an outpatient setting shall be the lower 
 71.17  of the usual and customary cost submitted by the provider; the 
 71.18  average wholesale price minus five percent; or the maximum 
 71.19  allowable cost set by the federal government under United States 
 71.20  Code, title 42, chapter 7, section 1396r-8(e), and Code of 
 71.21  Federal Regulations, title 42, section 447.332, or by the 
 71.22  commissioner under paragraph (c) (e). 
 71.23     (g) Prior authorization shall not be required or utilized 
 71.24  for any antipsychotic drug prescribed for the treatment of 
 71.25  mental illness where there is no generically equivalent drug 
 71.26  available unless the commissioner determines that prior 
 71.27  authorization is necessary for patient safety.  This paragraph 
 71.28  applies to any supplemental drug rebate program established or 
 71.29  administered by the commissioner.  Medical assistance covers the 
 71.30  following over-the-counter drugs when prescribed by a licensed 
 71.31  practitioner, or when authorized by a licensed pharmacist who 
 71.32  meets standards established by the commissioner, in consultation 
 71.33  with the board of pharmacy:  antacids, acetaminophen, family 
 71.34  planning products, aspirin, insulin, products for the treatment 
 71.35  of lice, vitamins for adults with documented vitamin 
 71.36  deficiencies, vitamins for children under the age of seven and 
 72.1   pregnant or nursing women, and any other over-the-counter drug 
 72.2   identified by the commissioner, in consultation with the 
 72.3   formulary committee, as necessary, appropriate, and cost 
 72.4   effective for the treatment of certain specified chronic 
 72.5   diseases, conditions, or disorders, and this determination shall 
 72.6   not be subject to the requirements of chapter 14.  When 
 72.7   authorizing over-the-counter drugs under this paragraph, 
 72.8   licensed pharmacists must consult with the recipient to 
 72.9   determine necessity, provide drug counseling, review drug 
 72.10  therapy for potential adverse interactions, and make referrals 
 72.11  as needed to other health care professionals.  
 72.12     (h) Prior authorization shall not be required or utilized 
 72.13  for any antihemophilic factor drug prescribed for the treatment 
 72.14  of hemophilia and blood disorders where there is no generically 
 72.15  equivalent drug available unless the commissioner determines 
 72.16  that prior authorization is necessary for patient safety.  This 
 72.17  paragraph applies to if the prior authorization is used in 
 72.18  conjunction with any supplemental drug rebate program or 
 72.19  multistate preferred drug list established or administered by 
 72.20  the commissioner.  This paragraph expires July 1, 2003 2005. 
 72.21     (i) Prior authorization shall not be required or utilized 
 72.22  for any atypical antipsychotic drug prescribed for the treatment 
 72.23  of mental illness if: 
 72.24     (1) there is no generically equivalent drug available; and 
 72.25     (2) the drug was initially prescribed for the recipient 
 72.26  prior to July 1, 2003; or 
 72.27     (3) the drug is part of the recipient's current course of 
 72.28  treatment. 
 72.29  This paragraph applies to any multistate preferred drug list or 
 72.30  supplemental drug rebate program established or administered by 
 72.31  the commissioner. 
 72.32     Sec. 20.  Minnesota Statutes 2002, section 256B.0625, is 
 72.33  amended by adding a subdivision to read: 
 72.34     Subd. 13c.  [PHARMACEUTICAL CARE DEMONSTRATION PROJECT.] (a)
 72.35  The commissioner shall develop, upon federal approval, a 
 72.36  demonstration project to provide culturally specific 
 73.1   pharmaceutical care to American Indian medical assistance 
 73.2   recipients who are age 55 and older.  In developing the 
 73.3   demonstration project, the commissioner shall consult with 
 73.4   organizations and health care providers experienced in 
 73.5   developing and implementing culturally competent intervention 
 73.6   strategies to manage the use of prescription drugs, 
 73.7   over-the-counter drugs, other drug products, and native 
 73.8   therapies by American Indian elders.  The commissioner shall 
 73.9   seek federal approval to implement the demonstration project. 
 73.10     (b) For purposes of this subdivision, "pharmaceutical care" 
 73.11  means the provision of drug therapy and native therapy for the 
 73.12  purpose of improving a patient's quality of life by:  (1) curing 
 73.13  a disease; (2) eliminating or reducing a patient's symptoms; (3) 
 73.14  arresting or slowing a disease process; or (4) preventing a 
 73.15  disease or a symptom.  Pharmaceutical care involves the 
 73.16  documented process through which a pharmacist cooperates with a 
 73.17  patient and other professionals in designing, implementing, and 
 73.18  monitoring a therapeutic plan that is expected to produce 
 73.19  specific therapeutic outcomes, through the identification, 
 73.20  resolution, and prevention of drug-related problems.  Nothing in 
 73.21  this subdivision shall be construed to expand or modify the 
 73.22  scope of practice of the pharmacist as defined in section 
 73.23  151.01, subdivision 27. 
 73.24     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003, 
 73.25  or upon federal approval, whichever is later. 
 73.26     Sec. 21.  Minnesota Statutes 2002, section 256B.0625, 
 73.27  subdivision 17, is amended to read: 
 73.28     Subd. 17.  [TRANSPORTATION COSTS.] (a) Medical assistance 
 73.29  covers transportation costs incurred solely for obtaining 
 73.30  emergency medical care or transportation costs incurred by 
 73.31  nonambulatory eligible persons in obtaining emergency or 
 73.32  nonemergency medical care when paid directly to an ambulance 
 73.33  company, common carrier, or other recognized providers of 
 73.34  transportation services.  For the purpose of this subdivision, a 
 73.35  person who is incapable of transport by taxicab or bus shall be 
 73.36  considered to be nonambulatory. 
 74.1      (b) Medical assistance covers special transportation, as 
 74.2   defined in Minnesota Rules, part 9505.0315, subpart 1, item F, 
 74.3   if the provider receives and maintains a current physician's 
 74.4   order by the recipient's attending physician certifying that the 
 74.5   recipient has a physical or mental impairment that would 
 74.6   prohibit the recipient from safely accessing and using a bus, 
 74.7   taxi, other commercial transportation, or private automobile.  
 74.8   The commissioner may use an order by the recipient's attending 
 74.9   physician to certify that the recipient requires special 
 74.10  transportation services.  Special transportation includes 
 74.11  driver-assisted service to eligible individuals.  
 74.12  Driver-assisted service includes passenger pickup at and return 
 74.13  to the individual's residence or place of business, assistance 
 74.14  with admittance of the individual to the medical facility, and 
 74.15  assistance in passenger securement or in securing of wheelchairs 
 74.16  or stretchers in the vehicle.  The commissioner shall establish 
 74.17  maximum medical assistance reimbursement rates for special 
 74.18  transportation services for persons who need a 
 74.19  wheelchair-accessible van or stretcher-accessible vehicle and 
 74.20  for those who do not need a wheelchair-accessible van or 
 74.21  stretcher-accessible vehicle.  The average of these two rates 
 74.22  per trip must not exceed $15 for the base rate and $1.40 per 
 74.23  mile.  Special transportation provided to nonambulatory persons 
 74.24  who do not need a wheelchair-accessible van or 
 74.25  stretcher-accessible vehicle, may be reimbursed at a lower rate 
 74.26  than special transportation provided to persons who need a 
 74.27  wheelchair-accessible van or stretcher-accessible 
 74.28  vehicle.  Special transportation providers must obtain written 
 74.29  documentation from the health care service provider who is 
 74.30  serving the recipient being transported, identifying the time 
 74.31  that the recipient arrived.  Special transportation providers 
 74.32  may not bill for separate base rates for the continuation of a 
 74.33  trip beyond the original destination.  Special transportation 
 74.34  providers must take recipients to the nearest appropriate health 
 74.35  care provider, using the most direct route available.  The 
 74.36  maximum medical assistance reimbursement rates for special 
 75.1   transportation services are: 
 75.2      (1) $18 for the base rate and $1.40 per mile for services 
 75.3   to eligible persons who need a wheelchair-accessible van; 
 75.4      (2) $12 for the base rate and $1.35 per mile for services 
 75.5   to eligible persons who do not need a wheelchair-accessible van; 
 75.6   and 
 75.7      (3) $36 for the base rate and $1.40 per mile, and an 
 75.8   attendant rate of $9 per trip, for services to eligible persons 
 75.9   who need a stretcher-accessible vehicle. 
 75.10     Sec. 22.  Minnesota Statutes 2002, section 256B.0625, is 
 75.11  amended by adding a subdivision to read: 
 75.12     Subd. 45.  [LIST OF HEALTH CARE SERVICES NOT ELIGIBLE FOR 
 75.13  COVERAGE.] (a) The commissioner of human services, in 
 75.14  consultation with the commissioner of health, shall biennially 
 75.15  establish a list of diagnosis/treatment pairings that are not 
 75.16  eligible for reimbursement under chapters 256B, 256D, and 256L, 
 75.17  effective for services provided on or after July 1, 2005.  The 
 75.18  commissioner shall review the list in effect for the prior 
 75.19  biennium and shall make any additions or deletions from the list 
 75.20  as appropriate taking into consideration the following:  
 75.21     (1) scientific and medical information; 
 75.22     (2) clinical assessment; 
 75.23     (3) cost-effectiveness of treatment; 
 75.24     (4) prevention of future costs; and 
 75.25     (5) medical ineffectiveness.  
 75.26     (b) The commissioner may appoint an ad hoc advisory panel 
 75.27  made up of physicians, consumers, nurses, dentists, 
 75.28  chiropractors, and other experts to assist the commissioner in 
 75.29  reviewing and establishing the list.  The commissioner shall 
 75.30  solicit comments and recommendations from any interested persons 
 75.31  and organizations and shall schedule at least one public hearing.
 75.32     (c) The list must be established by October 1 of the 
 75.33  even-numbered years beginning October 1, 2004.  The commissioner 
 75.34  shall publish the list in the State Register by November 1 of 
 75.35  the even-numbered years beginning November 1, 2004.  The list 
 75.36  shall be submitted to the legislature by January 15 of the 
 76.1   odd-numbered years beginning January 15, 2005. 
 76.2      Sec. 23.  Minnesota Statutes 2002, section 256B.0635, 
 76.3   subdivision 1, is amended to read: 
 76.4      Subdivision 1.  [INCREASED EMPLOYMENT.] (a) Until June 30, 
 76.5   2002, medical assistance may be paid for persons who received 
 76.6   MFIP or medical assistance for families and children in at least 
 76.7   three of six months preceding the month in which the person 
 76.8   became ineligible for MFIP or medical assistance, if the 
 76.9   ineligibility was due to an increase in hours of employment or 
 76.10  employment income or due to the loss of an earned income 
 76.11  disregard.  In addition, to receive continued assistance under 
 76.12  this section, persons who received medical assistance for 
 76.13  families and children but did not receive MFIP must have had 
 76.14  income less than or equal to the assistance standard for their 
 76.15  family size under the state's AFDC plan in effect as of July 16, 
 76.16  1996, increased by three percent effective July 1, 2000, at the 
 76.17  time medical assistance eligibility began.  A person who is 
 76.18  eligible for extended medical assistance is entitled to six 
 76.19  months of assistance without reapplication, unless the 
 76.20  assistance unit ceases to include a dependent child.  For a 
 76.21  person under 21 years of age, medical assistance may not be 
 76.22  discontinued within the six-month period of extended eligibility 
 76.23  until it has been determined that the person is not otherwise 
 76.24  eligible for medical assistance.  Medical assistance may be 
 76.25  continued for an additional six months if the person meets all 
 76.26  requirements for the additional six months, according to title 
 76.27  XIX of the Social Security Act, as amended by section 303 of the 
 76.28  Family Support Act of 1988, Public Law Number 100-485. 
 76.29     (b) Beginning July 1, 2002, contingent upon federal 
 76.30  funding, medical assistance for families and children may be 
 76.31  paid for persons who were eligible under section 256B.055, 
 76.32  subdivision 3a, in at least three of six months preceding the 
 76.33  month in which the person became ineligible under that section 
 76.34  if the ineligibility was due to an increase in hours of 
 76.35  employment or employment income or due to the loss of an earned 
 76.36  income disregard.  A person who is eligible for extended medical 
 77.1   assistance is entitled to six months of assistance without 
 77.2   reapplication, unless the assistance unit ceases to include a 
 77.3   dependent child, except medical assistance may not be 
 77.4   discontinued for that dependent child under 21 years of age 
 77.5   within the six-month period of extended eligibility until it has 
 77.6   been determined that the person is not otherwise eligible for 
 77.7   medical assistance.  Medical assistance may be continued for an 
 77.8   additional six months if the person meets all requirements for 
 77.9   the additional six months, according to title XIX of the Social 
 77.10  Security Act, as amended by section 303 of the Family Support 
 77.11  Act of 1988, Public Law Number 100-485. 
 77.12     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 77.13     Sec. 24.  Minnesota Statutes 2002, section 256B.0635, 
 77.14  subdivision 2, is amended to read: 
 77.15     Subd. 2.  [INCREASED CHILD OR SPOUSAL SUPPORT.] (a) Until 
 77.16  June 30, 2002, medical assistance may be paid for persons who 
 77.17  received MFIP or medical assistance for families and children in 
 77.18  at least three of the six months preceding the month in which 
 77.19  the person became ineligible for MFIP or medical assistance, if 
 77.20  the ineligibility was the result of the collection of child or 
 77.21  spousal support under part D of title IV of the Social Security 
 77.22  Act.  In addition, to receive continued assistance under this 
 77.23  section, persons who received medical assistance for families 
 77.24  and children but did not receive MFIP must have had income less 
 77.25  than or equal to the assistance standard for their family size 
 77.26  under the state's AFDC plan in effect as of July 16, 1996, 
 77.27  increased by three percent effective July 1, 2000, at the time 
 77.28  medical assistance eligibility began.  A person who is eligible 
 77.29  for extended medical assistance under this subdivision is 
 77.30  entitled to four months of assistance without reapplication, 
 77.31  unless the assistance unit ceases to include a dependent child, 
 77.32  except medical assistance may not be discontinued for that 
 77.33  dependent child under 21 years of age within the four-month 
 77.34  period of extended eligibility until it has been determined that 
 77.35  the person is not otherwise eligible for medical assistance. 
 77.36     (b) Beginning July 1, 2002, contingent upon federal 
 78.1   funding, medical assistance for families and children may be 
 78.2   paid for persons who were eligible under section 256B.055, 
 78.3   subdivision 3a, in at least three of the six months preceding 
 78.4   the month in which the person became ineligible under that 
 78.5   section if the ineligibility was the result of the collection of 
 78.6   child or spousal support under part D of title IV of the Social 
 78.7   Security Act.  A person who is eligible for extended medical 
 78.8   assistance under this subdivision is entitled to four months of 
 78.9   assistance without reapplication, unless the assistance unit 
 78.10  ceases to include a dependent child, except medical assistance 
 78.11  may not be discontinued for that dependent child under 21 years 
 78.12  of age within the four-month period of extended eligibility 
 78.13  until it has been determined that the person is not otherwise 
 78.14  eligible for medical assistance. 
 78.15     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 78.16     Sec. 25.  Minnesota Statutes 2002, section 256B.19, is 
 78.17  amended by adding a subdivision to read: 
 78.18     Subd. 4.  [TEMPORARY COUNTY SHARE OF MEDICAL ASSISTANCE 
 78.19  COSTS.] (a) Except as otherwise provided in this chapter, for 
 78.20  the period January 1, 2005, to June 30, 2005, the county share 
 78.21  of medical assistance costs shall be 3.9 percent county funds. 
 78.22     (b) The county shall pay by the 20th of each month the 
 78.23  county portion of medical assistance costs under the temporary 
 78.24  share provided in this subdivision based upon billings from the 
 78.25  state agency to the county agency for expenditures for the 
 78.26  succeeding month.  Payment shall be made monthly by the county 
 78.27  to the state for expenditures for each month. 
 78.28     (c) On or before July 31, 2005, the state shall reimburse 
 78.29  each county for the medical assistance payments made by that 
 78.30  county to the state under paragraph (b).  
 78.31     Sec. 26.  Minnesota Statutes 2002, section 256B.195, 
 78.32  subdivision 3, is amended to read: 
 78.33     Subd. 3.  [PAYMENTS TO CERTAIN SAFETY NET PROVIDERS.] (a) 
 78.34  Effective July 15, 2001, the commissioner shall make the 
 78.35  following payments to the hospitals indicated after noon on the 
 78.36  15th of each month: 
 79.1      (1) to Hennepin County Medical Center, any federal matching 
 79.2   funds available to match the payments received by the medical 
 79.3   center under subdivision 2, to increase payments for medical 
 79.4   assistance admissions and to recognize higher medical assistance 
 79.5   costs in institutions that provide high levels of charity care; 
 79.6   and 
 79.7      (2) to Regions hospital, any federal matching funds 
 79.8   available to match the payments received by the hospital under 
 79.9   subdivision 2, to increase payments for medical assistance 
 79.10  admissions and to recognize higher medical assistance costs in 
 79.11  institutions that provide high levels of charity care.  
 79.12     (b) Effective July 15, 2001, the following percentages of 
 79.13  the transfers under subdivision 2 shall be retained by the 
 79.14  commissioner for deposit each month into the general fund: 
 79.15     (1) 18 percent, plus any federal matching funds, shall be 
 79.16  allocated for the following purposes: 
 79.17     (i) during the fiscal year beginning July 1, 2001, of the 
 79.18  amount available under this clause, 39.7 percent shall be 
 79.19  allocated to make increased hospital payments under section 
 79.20  256.969, subdivision 26; 34.2 percent shall be allocated to fund 
 79.21  the amounts due from small rural hospitals, as defined in 
 79.22  section 144.148, for overpayments under section 256.969, 
 79.23  subdivision 5a, resulting from a determination that medical 
 79.24  assistance and general assistance payments exceeded the charge 
 79.25  limit during the period from 1994 to 1997; and 26.1 percent 
 79.26  shall be allocated to the commissioner of health for rural 
 79.27  hospital capital improvement grants under section 144.148; and 
 79.28     (ii) during fiscal years beginning on or after July 1, 
 79.29  2002, of the amount available under this clause, 55 percent 
 79.30  shall be allocated to make increased hospital payments under 
 79.31  section 256.969, subdivision 26, and 45 percent shall be 
 79.32  allocated to the commissioner of health for rural hospital 
 79.33  capital improvement grants under section 144.148; and 
 79.34     (2) 11 percent shall be allocated to the commissioner of 
 79.35  health to fund community clinic grants under section 145.9268. 
 79.36     (c) This subdivision shall apply to fee-for-service 
 80.1   payments only and shall not increase capitation payments or 
 80.2   payments made based on average rates. 
 80.3      (d) Medical assistance rate or payment changes, including 
 80.4   those required to obtain federal financial participation under 
 80.5   section 62J.692, subdivision 8, shall precede the determination 
 80.6   of intergovernmental transfer amounts determined in this 
 80.7   subdivision.  Participation in the intergovernmental transfer 
 80.8   program shall not result in the offset of any health care 
 80.9   provider's receipt of medical assistance payment increases other 
 80.10  than limits resulting from hospital-specific charge limits and 
 80.11  limits on disproportionate share hospital payments. 
 80.12     (e) Effective July 1, 2003, if the amount available for 
 80.13  allocation under paragraph (b) is greater than the amounts 
 80.14  available during March 2003, any additional amounts available 
 80.15  under this subdivision after reimbursement of the transfers 
 80.16  under subdivision 2, as a result of sections 62J.692, 
 80.17  subdivision 8, and 256.969, subdivision 3a; or from any other 
 80.18  source, shall be allocated to increase medical assistance 
 80.19  payments, subject to hospital-specific charge limits and limits 
 80.20  on disproportionate share hospital payments, as follows:  
 80.21     (1) if the payments under subdivision 5 have been approved, 
 80.22  67 percent shall be allocated to Hennepin County Medical Center 
 80.23  and 33 percent to Regions hospital; or 
 80.24     (2) if the payments under subdivision 5 have not been 
 80.25  approved, 51 percent shall be allocated to Hennepin County 
 80.26  Medical Center, 27 percent to Regions hospital, and 22 percent 
 80.27  to Fairview University Medical Center.  
 80.28     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003.  
 80.29     Sec. 27.  Minnesota Statutes 2002, section 256B.195, 
 80.30  subdivision 5, is amended to read: 
 80.31     Subd. 5.  [INCLUSION OF FAIRVIEW UNIVERSITY MEDICAL 
 80.32  CENTER.] (a) Upon federal approval of the inclusion of Fairview 
 80.33  University Medical Center in the nonstate government 
 80.34  category payments in paragraph (b), the commissioner shall 
 80.35  establish an intergovernmental transfer with the University of 
 80.36  Minnesota in an amount determined by the commissioner based on 
 81.1   the increase in the amount of Medicare upper payment limit due 
 81.2   solely to the inclusion of Fairview University Medical Center as 
 81.3   a nonstate government hospital and limited available for 
 81.4   nongovernment hospitals adjusted by hospital-specific charge 
 81.5   limits and the amount available under the hospital-specific 
 81.6   disproportionate share limit. 
 81.7      (b) The commissioner shall increase payments for medical 
 81.8   assistance admissions at Fairview University Medical Center by 
 81.9   71 percent the amount of the transfer plus any federal matching 
 81.10  payments on that amount, to increase payments for medical 
 81.11  assistance admissions and to recognize higher medical assistance 
 81.12  costs in institutions that provide high levels of charity care.  
 81.13  From this payment, Fairview University Medical Center shall pay 
 81.14  to the University of Minnesota the cost of the transfer, on the 
 81.15  same day the payment is received.  Eighteen percent of the 
 81.16  transfer plus any federal matching payments shall be used as 
 81.17  specified in subdivision 3, paragraph (b), clause (1).  Payments 
 81.18  under section 256.969, subdivision 26, may be increased above 
 81.19  the 90 percent level specified in that subdivision within the 
 81.20  limits of additional funding available under this subdivision.  
 81.21  Eleven percent of the transfer shall be used to increase the 
 81.22  grants under section 145.9268. 
 81.23     Sec. 28.  Minnesota Statutes 2002, section 256B.32, 
 81.24  subdivision 1, is amended to read: 
 81.25     Subdivision 1.  [FACILITY FEE PAYMENT.] (a) The 
 81.26  commissioner shall establish a facility fee payment mechanism 
 81.27  that will pay a facility fee to all enrolled outpatient 
 81.28  hospitals for each emergency room or outpatient clinic visit 
 81.29  provided on or after July 1, 1989.  This payment mechanism may 
 81.30  not result in an overall increase in outpatient payment rates.  
 81.31  This section does not apply to federally mandated maximum 
 81.32  payment limits, department approved program packages, or 
 81.33  services billed using a nonoutpatient hospital provider number. 
 81.34     (b) For fee-for-service services provided on or after July 
 81.35  1, 2002, the total payment, before third-party liability and 
 81.36  spenddown, made to hospitals for outpatient hospital facility 
 82.1   services is reduced by .5 percent from the current statutory 
 82.2   rates. 
 82.3      (c) In addition to the reduction in paragraph (b), the 
 82.4   total payment for fee-for-service services provided on or after 
 82.5   July 1, 2003, made to hospitals for outpatient hospital facility 
 82.6   services before third-party liability and spenddown, is reduced 
 82.7   five percent from the current statutory rates.  Facilities 
 82.8   defined under section 256.969, subdivision 16, are excluded from 
 82.9   this paragraph. 
 82.10     Sec. 29.  Minnesota Statutes 2002, section 256B.69, 
 82.11  subdivision 2, is amended to read: 
 82.12     Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
 82.13  the following terms have the meanings given.  
 82.14     (a) "Commissioner" means the commissioner of human services.
 82.15  For the remainder of this section, the commissioner's 
 82.16  responsibilities for methods and policies for implementing the 
 82.17  project will be proposed by the project advisory committees and 
 82.18  approved by the commissioner.  
 82.19     (b) "Demonstration provider" means a health maintenance 
 82.20  organization, community integrated service network, or 
 82.21  accountable provider network authorized and operating under 
 82.22  chapter 62D, 62N, or 62T that participates in the demonstration 
 82.23  project according to criteria, standards, methods, and other 
 82.24  requirements established for the project and approved by the 
 82.25  commissioner.  For purposes of this section, a county board, or 
 82.26  group of county boards operating under a joint powers agreement, 
 82.27  is considered a demonstration provider if the county or group of 
 82.28  county boards meets the requirements of section 256B.692.  
 82.29  Notwithstanding the above, Itasca county may continue to 
 82.30  participate as a demonstration provider until July 1, 2004. 
 82.31     (c) "Eligible individuals" means those persons eligible for 
 82.32  medical assistance benefits as defined in sections 256B.055, 
 82.33  256B.056, and 256B.06. 
 82.34     (d) "Limitation of choice" means suspending freedom of 
 82.35  choice while allowing eligible individuals to choose among the 
 82.36  demonstration providers.  
 83.1      (e) This paragraph supersedes paragraph (c) as long as the 
 83.2   Minnesota health care reform waiver remains in effect.  When the 
 83.3   waiver expires, this paragraph expires and the commissioner of 
 83.4   human services shall publish a notice in the State Register and 
 83.5   notify the revisor of statutes.  "Eligible individuals" means 
 83.6   those persons eligible for medical assistance benefits as 
 83.7   defined in sections 256B.055, 256B.056, and 256B.06.  
 83.8   Notwithstanding sections 256B.055, 256B.056, and 256B.06, an 
 83.9   individual who becomes ineligible for the program because of 
 83.10  failure to submit income reports or recertification forms in a 
 83.11  timely manner, shall remain enrolled in the prepaid health plan 
 83.12  and shall remain eligible to receive medical assistance coverage 
 83.13  through the last day of the month following the month in which 
 83.14  the enrollee became ineligible for the medical assistance 
 83.15  program. 
 83.16     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 83.17     Sec. 30.  Minnesota Statutes 2002, section 256B.69, 
 83.18  subdivision 4, is amended to read: 
 83.19     Subd. 4.  [LIMITATION OF CHOICE.] (a) The commissioner 
 83.20  shall develop criteria to determine when limitation of choice 
 83.21  may be implemented in the experimental counties.  The criteria 
 83.22  shall ensure that all eligible individuals in the county have 
 83.23  continuing access to the full range of medical assistance 
 83.24  services as specified in subdivision 6.  
 83.25     (b) The commissioner shall exempt the following persons 
 83.26  from participation in the project, in addition to those who do 
 83.27  not meet the criteria for limitation of choice:  
 83.28     (1) persons eligible for medical assistance according to 
 83.29  section 256B.055, subdivision 1; 
 83.30     (2) persons eligible for medical assistance due to 
 83.31  blindness or disability as determined by the social security 
 83.32  administration or the state medical review team, unless:  
 83.33     (i) they are 65 years of age or older; or 
 83.34     (ii) they reside in Itasca county or they reside in a 
 83.35  county in which the commissioner conducts a pilot project under 
 83.36  a waiver granted pursuant to section 1115 of the Social Security 
 84.1   Act; 
 84.2      (3) recipients who currently have private coverage through 
 84.3   a health maintenance organization; 
 84.4      (4) recipients who are eligible for medical assistance by 
 84.5   spending down excess income for medical expenses other than the 
 84.6   nursing facility per diem expense; 
 84.7      (5) recipients who receive benefits under the Refugee 
 84.8   Assistance Program, established under United States Code, title 
 84.9   8, section 1522(e); 
 84.10     (6) children who are both determined to be severely 
 84.11  emotionally disturbed and receiving case management services 
 84.12  according to section 256B.0625, subdivision 20; 
 84.13     (7) adults who are both determined to be seriously and 
 84.14  persistently mentally ill and received case management services 
 84.15  according to section 256B.0625, subdivision 20; and 
 84.16     (8) persons eligible for medical assistance according to 
 84.17  section 256B.057, subdivision 10; and 
 84.18     (9) persons with access to cost-effective 
 84.19  employer-sponsored private health insurance or persons enrolled 
 84.20  in an individual health plan determined to be cost-effective 
 84.21  according to section 256B.0625, subdivision 15.  
 84.22  Children under age 21 who are in foster placement may enroll in 
 84.23  the project on an elective basis.  Individuals excluded under 
 84.24  clauses (6) and (7) may choose to enroll on an elective 
 84.25  basis.  The commissioner may enroll recipients in the prepaid 
 84.26  medical assistance program for seniors who are (1) age 65 and 
 84.27  over, and (2) eligible for medical assistance by spending down 
 84.28  excess income. 
 84.29     (c) The commissioner may allow persons with a one-month 
 84.30  spenddown who are otherwise eligible to enroll to voluntarily 
 84.31  enroll or remain enrolled, if they elect to prepay their monthly 
 84.32  spenddown to the state.  
 84.33     (d) The commissioner may require those individuals to 
 84.34  enroll in the prepaid medical assistance program who otherwise 
 84.35  would have been excluded under paragraph (b), clauses (1), (3), 
 84.36  and (8), and under Minnesota Rules, part 9500.1452, subpart 2, 
 85.1   items H, K, and L.  
 85.2      (e) Before limitation of choice is implemented, eligible 
 85.3   individuals shall be notified and after notification, shall be 
 85.4   allowed to choose only among demonstration providers.  The 
 85.5   commissioner may assign an individual with private coverage 
 85.6   through a health maintenance organization, to the same health 
 85.7   maintenance organization for medical assistance coverage, if the 
 85.8   health maintenance organization is under contract for medical 
 85.9   assistance in the individual's county of residence.  After 
 85.10  initially choosing a provider, the recipient is allowed to 
 85.11  change that choice only at specified times as allowed by the 
 85.12  commissioner.  If a demonstration provider ends participation in 
 85.13  the project for any reason, a recipient enrolled with that 
 85.14  provider must select a new provider but may change providers 
 85.15  without cause once more within the first 60 days after 
 85.16  enrollment with the second provider. 
 85.17     Sec. 31.  Minnesota Statutes 2002, section 256B.69, 
 85.18  subdivision 5, is amended to read: 
 85.19     Subd. 5.  [PROSPECTIVE PER CAPITA PAYMENT.] The 
 85.20  commissioner shall establish the method and amount of payments 
 85.21  for services.  The commissioner shall annually contract with 
 85.22  demonstration providers to provide services consistent with 
 85.23  these established methods and amounts for payment.  
 85.24     If allowed by the commissioner, a demonstration provider 
 85.25  may contract with an insurer, health care provider, nonprofit 
 85.26  health service plan corporation, or the commissioner, to provide 
 85.27  insurance or similar protection against the cost of care 
 85.28  provided by the demonstration provider or to provide coverage 
 85.29  against the risks incurred by demonstration providers under this 
 85.30  section.  The recipients enrolled with a demonstration provider 
 85.31  are a permissible group under group insurance laws and chapter 
 85.32  62C, the Nonprofit Health Service Plan Corporations Act.  Under 
 85.33  this type of contract, the insurer or corporation may make 
 85.34  benefit payments to a demonstration provider for services 
 85.35  rendered or to be rendered to a recipient.  Any insurer or 
 85.36  nonprofit health service plan corporation licensed to do 
 86.1   business in this state is authorized to provide this insurance 
 86.2   or similar protection.  
 86.3      Payments to providers participating in the project are 
 86.4   exempt from the requirements of sections 256.966 and 256B.03, 
 86.5   subdivision 2.  The commissioner shall complete development of 
 86.6   capitation rates for payments before delivery of services under 
 86.7   this section is begun.  For payments made during calendar year 
 86.8   1990 and later years, the commissioner shall contract with an 
 86.9   independent actuary to establish prepayment rates. 
 86.10     By January 15, 1996, the commissioner shall report to the 
 86.11  legislature on the methodology used to allocate to participating 
 86.12  counties available administrative reimbursement for advocacy and 
 86.13  enrollment costs.  The report shall reflect the commissioner's 
 86.14  judgment as to the adequacy of the funds made available and of 
 86.15  the methodology for equitable distribution of the funds.  The 
 86.16  commissioner must involve participating counties in the 
 86.17  development of the report. 
 86.18     Beginning July 1, 2004, the commissioner may include 
 86.19  payments for elderly waiver services and 180 days of nursing 
 86.20  home care in capitation payments for the prepaid medical 
 86.21  assistance program for seniors.  Payments for elderly waiver 
 86.22  services shall be made no earlier than the month following the 
 86.23  month in which services were received.  
 86.24     Sec. 32.  Minnesota Statutes 2002, section 256B.69, 
 86.25  subdivision 5a, is amended to read: 
 86.26     Subd. 5a.  [MANAGED CARE CONTRACTS.] (a) Managed care 
 86.27  contracts under this section and sections 256L.12 and 256D.03, 
 86.28  shall be entered into or renewed on a calendar year basis 
 86.29  beginning January 1, 1996.  Managed care contracts which were in 
 86.30  effect on June 30, 1995, and set to renew on July 1, 1995, shall 
 86.31  be renewed for the period July 1, 1995 through December 31, 1995 
 86.32  at the same terms that were in effect on June 30, 1995.  The 
 86.33  commissioner may issue separate contracts with requirements 
 86.34  specific to services to medical assistance recipients age 65 and 
 86.35  older. 
 86.36     (b) A prepaid health plan providing covered health services 
 87.1   for eligible persons pursuant to chapters 256B, 256D, and 256L, 
 87.2   is responsible for complying with the terms of its contract with 
 87.3   the commissioner.  Requirements applicable to managed care 
 87.4   programs under chapters 256B, 256D, and 256L, established after 
 87.5   the effective date of a contract with the commissioner take 
 87.6   effect when the contract is next issued or renewed. 
 87.7      (c) Effective for services rendered on or after January 1, 
 87.8   2003, the commissioner shall withhold five percent of managed 
 87.9   care plan payments under this section for the prepaid medical 
 87.10  assistance and general assistance medical care programs pending 
 87.11  completion of performance targets.  The withheld funds must be 
 87.12  returned no sooner than July of the following year if 
 87.13  performance targets in the contract are achieved.  The 
 87.14  commissioner may exclude special demonstration projects under 
 87.15  subdivision 23.  A managed care plan may include as admitted 
 87.16  assets under section 62D.044 any amount withheld under this 
 87.17  paragraph that is reasonably expected to be returned.  
 87.18     Sec. 33.  Minnesota Statutes 2002, section 256B.69, 
 87.19  subdivision 5c, is amended to read: 
 87.20     Subd. 5c.  [MEDICAL EDUCATION AND RESEARCH FUND.] (a) 
 87.21  Except as provided in paragraph (c), the commissioner of human 
 87.22  services shall transfer each year to the medical education and 
 87.23  research fund established under section 62J.692, the following: 
 87.24     (1) an amount equal to the reduction in the prepaid medical 
 87.25  assistance and prepaid general assistance medical care payments 
 87.26  as specified in this clause.  Until January 1, 2002, the county 
 87.27  medical assistance and general assistance medical care 
 87.28  capitation base rate prior to plan specific adjustments and 
 87.29  after the regional rate adjustments under section 256B.69, 
 87.30  subdivision 5b, is reduced 6.3 percent for Hennepin county, two 
 87.31  percent for the remaining metropolitan counties, and no 
 87.32  reduction for nonmetropolitan Minnesota counties; and after 
 87.33  January 1, 2002, the county medical assistance and general 
 87.34  assistance medical care capitation base rate prior to plan 
 87.35  specific adjustments is reduced 6.3 percent for Hennepin county, 
 87.36  two percent for the remaining metropolitan counties, and 1.6 
 88.1   percent for nonmetropolitan Minnesota counties.  Nursing 
 88.2   facility and elderly waiver payments and demonstration project 
 88.3   payments operating under subdivision 23 are excluded from this 
 88.4   reduction.  The amount calculated under this clause shall not be 
 88.5   adjusted for periods already paid due to subsequent changes to 
 88.6   the capitation payments; 
 88.7      (2) beginning July 1, 2001, $2,537,000 2003, $2,157,000 
 88.8   from the capitation rates paid under this section plus any 
 88.9   federal matching funds on this amount; 
 88.10     (3) beginning July 1, 2002, an additional $12,700,000 from 
 88.11  the capitation rates paid under this section; and 
 88.12     (4) beginning July 1, 2003, an additional $4,700,000 from 
 88.13  the capitation rates paid under this section. 
 88.14     (b) This subdivision shall be effective upon approval of a 
 88.15  federal waiver which allows federal financial participation in 
 88.16  the medical education and research fund. 
 88.17     (c) Effective July 1, 2003, the amount reduced from the 
 88.18  prepaid general assistance medical care payments under paragraph 
 88.19  (a), clause (1), shall be transferred to the general fund. 
 88.20     Sec. 34.  Minnesota Statutes 2002, section 256B.69, 
 88.21  subdivision 5g, is amended to read: 
 88.22     Subd. 5g.  [PAYMENT FOR COVERED SERVICES.] (a) For services 
 88.23  rendered on or after January 1, 2003, the total payment made to 
 88.24  managed care plans for providing covered services under the 
 88.25  medical assistance and general assistance medical care programs 
 88.26  is reduced by .5 percent from their current statutory rates.  
 88.27     (b) In addition to the reduction in paragraph (a), the 
 88.28  total payment made to managed care plans under the medical 
 88.29  assistance and general assistance medical care programs is 
 88.30  reduced by one percent for services rendered on or after October 
 88.31  1, 2003.  
 88.32     (c) This provision excludes subdivision does not apply to 
 88.33  payments for nursing home services, home and community-based 
 88.34  waivers, and payments to demonstration projects for persons with 
 88.35  disabilities. 
 88.36     Sec. 35.  Minnesota Statutes 2002, section 256B.69, 
 89.1   subdivision 6a, is amended to read: 
 89.2      Subd. 6a.  [NURSING HOME SERVICES.] (a) Notwithstanding 
 89.3   Minnesota Rules, part 9500.1457, subpart 1, item B, up to 90 180 
 89.4   days of nursing facility services as defined in section 
 89.5   256B.0625, subdivision 2, which are provided in a nursing 
 89.6   facility certified by the Minnesota department of health for 
 89.7   services provided and eligible for payment under Medicaid, shall 
 89.8   be covered under the prepaid medical assistance program for 
 89.9   individuals who are not residing in a nursing facility at the 
 89.10  time of enrollment in the prepaid medical assistance 
 89.11  program.  The commissioner may develop a schedule to phase in 
 89.12  implementation of the 180-day provision. 
 89.13     (b) For individuals enrolled in the Minnesota senior health 
 89.14  options project authorized under subdivision 23, nursing 
 89.15  facility services shall be covered according to the terms and 
 89.16  conditions of the federal agreement governing that demonstration 
 89.17  project. 
 89.18     Sec. 36.  Minnesota Statutes 2002, section 256B.69, 
 89.19  subdivision 6b, is amended to read: 
 89.20     Subd. 6b.  [HOME AND COMMUNITY-BASED WAIVER SERVICES.] (a) 
 89.21  For individuals enrolled in the Minnesota senior health options 
 89.22  project authorized under subdivision 23, elderly waiver services 
 89.23  shall be covered according to the terms and conditions of the 
 89.24  federal agreement governing that demonstration project. 
 89.25     (b) For individuals under age 65 enrolled in demonstrations 
 89.26  authorized under subdivision 23, home and community-based waiver 
 89.27  services shall be covered according to the terms and conditions 
 89.28  of the federal agreement governing that demonstration project. 
 89.29     (c) Notwithstanding Minnesota Rules, part 9500.1457, 
 89.30  subpart 1, item C, elderly waiver services shall be covered 
 89.31  under the prepaid medical assistance program for all individuals 
 89.32  who are eligible according to section 256B.0915.  The 
 89.33  commissioner may develop a schedule to phase in implementation 
 89.34  of these waiver services.  
 89.35     Sec. 37.  Minnesota Statutes 2002, section 256B.69, is 
 89.36  amended by adding a subdivision to read: 
 90.1      Subd. 6d.  [PRESCRIPTION DRUGS.] Effective January 1, 2004, 
 90.2   the commissioner may exclude or modify coverage for prescription 
 90.3   drugs from the prepaid managed care contracts entered into under 
 90.4   this section in order to increase savings to the state by 
 90.5   collecting additional prescription drug rebates.  The contracts 
 90.6   must maintain incentives for the managed care plan to manage 
 90.7   drug costs and utilization and may require that the managed care 
 90.8   plans maintain an open drug formulary.  In order to manage drug 
 90.9   costs and utilization, the contracts may authorize the managed 
 90.10  care plans to use preferred drug lists and prior authorization.  
 90.11  This subdivision is contingent on federal approval of the 
 90.12  managed care contract changes and the collection of additional 
 90.13  prescription drug rebates.  
 90.14     Sec. 38.  Minnesota Statutes 2002, section 256B.69, 
 90.15  subdivision 8, is amended to read: 
 90.16     Subd. 8.  [PREADMISSION SCREENING WAIVER.] Except as 
 90.17  applicable to the project's operation, the provisions of section 
 90.18  256B.0911 are waived for the purposes of this section for 
 90.19  recipients enrolled with demonstration providers or in the 
 90.20  prepaid medical assistance program for seniors.  
 90.21     Sec. 39.  Minnesota Statutes 2002, section 256B.75, is 
 90.22  amended to read: 
 90.23     256B.75 [HOSPITAL OUTPATIENT REIMBURSEMENT.] 
 90.24     (a) For outpatient hospital facility fee payments for 
 90.25  services rendered on or after October 1, 1992, the commissioner 
 90.26  of human services shall pay the lower of (1) submitted charge, 
 90.27  or (2) 32 percent above the rate in effect on June 30, 1992, 
 90.28  except for those services for which there is a federal maximum 
 90.29  allowable payment.  Effective for services rendered on or after 
 90.30  January 1, 2000, payment rates for nonsurgical outpatient 
 90.31  hospital facility fees and emergency room facility fees shall be 
 90.32  increased by eight percent over the rates in effect on December 
 90.33  31, 1999, except for those services for which there is a federal 
 90.34  maximum allowable payment.  Services for which there is a 
 90.35  federal maximum allowable payment shall be paid at the lower of 
 90.36  (1) submitted charge, or (2) the federal maximum allowable 
 91.1   payment.  Total aggregate payment for outpatient hospital 
 91.2   facility fee services shall not exceed the Medicare upper 
 91.3   limit.  If it is determined that a provision of this section 
 91.4   conflicts with existing or future requirements of the United 
 91.5   States government with respect to federal financial 
 91.6   participation in medical assistance, the federal requirements 
 91.7   prevail.  The commissioner may, in the aggregate, prospectively 
 91.8   reduce payment rates to avoid reduced federal financial 
 91.9   participation resulting from rates that are in excess of the 
 91.10  Medicare upper limitations. 
 91.11     (b) Notwithstanding paragraph (a), payment for outpatient, 
 91.12  emergency, and ambulatory surgery hospital facility fee services 
 91.13  for critical access hospitals designated under section 144.1483, 
 91.14  clause (11), shall be paid on a cost-based payment system that 
 91.15  is based on the cost-finding methods and allowable costs of the 
 91.16  Medicare program. 
 91.17     (c) Effective for services provided on or after July 1, 
 91.18  2003, rates that are based on the Medicare outpatient 
 91.19  prospective payment system shall be replaced by a budget neutral 
 91.20  prospective payment system that is derived using medical 
 91.21  assistance data.  The commissioner shall provide a proposal to 
 91.22  the 2003 legislature to define and implement this provision. 
 91.23     (d) For fee-for-service services provided on or after July 
 91.24  1, 2002, the total payment, before third-party liability and 
 91.25  spenddown, made to hospitals for outpatient hospital facility 
 91.26  services is reduced by .5 percent from the current statutory 
 91.27  rate. 
 91.28     (e) In addition to the reduction in paragraph (d), the 
 91.29  total payment for fee-for-service services provided on or after 
 91.30  July 1, 2003, made to hospitals for outpatient hospital facility 
 91.31  services before third-party liability and spenddown, is reduced 
 91.32  five percent from the current statutory rates.  Facilities 
 91.33  defined under section 256.969, subdivision 16, are excluded from 
 91.34  this paragraph. 
 91.35     Sec. 40.  Minnesota Statutes 2002, section 256B.76, is 
 91.36  amended to read: 
 92.1      256B.76 [PHYSICIAN AND, DENTAL, AND OTHER PROVIDER 
 92.2   REIMBURSEMENT.] 
 92.3      (a) Effective for services rendered on or after October 1, 
 92.4   1992, the commissioner shall make payments for physician 
 92.5   services as follows: 
 92.6      (1) payment for level one Centers for Medicare and Medicaid 
 92.7   Services' common procedural coding system codes titled "office 
 92.8   and other outpatient services," "preventive medicine new and 
 92.9   established patient," "delivery, antepartum, and postpartum 
 92.10  care," "critical care," cesarean delivery and pharmacologic 
 92.11  management provided to psychiatric patients, and level three 
 92.12  codes for enhanced services for prenatal high risk, shall be 
 92.13  paid at the lower of (i) submitted charges, or (ii) 25 percent 
 92.14  above the rate in effect on June 30, 1992.  If the rate on any 
 92.15  procedure code within these categories is different than the 
 92.16  rate that would have been paid under the methodology in section 
 92.17  256B.74, subdivision 2, then the larger rate shall be paid; 
 92.18     (2) payments for all other services shall be paid at the 
 92.19  lower of (i) submitted charges, or (ii) 15.4 percent above the 
 92.20  rate in effect on June 30, 1992; 
 92.21     (3) all physician rates shall be converted from the 50th 
 92.22  percentile of 1982 to the 50th percentile of 1989, less the 
 92.23  percent in aggregate necessary to equal the above increases 
 92.24  except that payment rates for home health agency services shall 
 92.25  be the rates in effect on September 30, 1992; 
 92.26     (4) effective for services rendered on or after January 1, 
 92.27  2000, payment rates for physician and professional services 
 92.28  shall be increased by three percent over the rates in effect on 
 92.29  December 31, 1999, except for home health agency and family 
 92.30  planning agency services; and 
 92.31     (5) the increases in clause (4) shall be implemented 
 92.32  January 1, 2000, for managed care. 
 92.33     (b) Effective for services rendered on or after October 1, 
 92.34  1992, the commissioner shall make payments for dental services 
 92.35  as follows: 
 92.36     (1) dental services shall be paid at the lower of (i) 
 93.1   submitted charges, or (ii) 25 percent above the rate in effect 
 93.2   on June 30, 1992; 
 93.3      (2) dental rates shall be converted from the 50th 
 93.4   percentile of 1982 to the 50th percentile of 1989, less the 
 93.5   percent in aggregate necessary to equal the above increases; 
 93.6      (3) effective for services rendered on or after January 1, 
 93.7   2000, payment rates for dental services shall be increased by 
 93.8   three percent over the rates in effect on December 31, 1999; 
 93.9      (4) the commissioner shall award grants to community 
 93.10  clinics or other nonprofit community organizations, political 
 93.11  subdivisions, professional associations, or other organizations 
 93.12  that demonstrate the ability to provide dental services 
 93.13  effectively to public program recipients.  Grants may be used to 
 93.14  fund the costs related to coordinating access for recipients, 
 93.15  developing and implementing patient care criteria, upgrading or 
 93.16  establishing new facilities, acquiring furnishings or equipment, 
 93.17  recruiting new providers, or other development costs that will 
 93.18  improve access to dental care in a region.  In awarding grants, 
 93.19  the commissioner shall give priority to applicants that plan to 
 93.20  serve areas of the state in which the number of dental providers 
 93.21  is not currently sufficient to meet the needs of recipients of 
 93.22  public programs or uninsured individuals.  The commissioner 
 93.23  shall consider the following in awarding the grants: 
 93.24     (i) potential to successfully increase access to an 
 93.25  underserved population; 
 93.26     (ii) the ability to raise matching funds; 
 93.27     (iii) the long-term viability of the project to improve 
 93.28  access beyond the period of initial funding; 
 93.29     (iv) the efficiency in the use of the funding; and 
 93.30     (v) the experience of the proposers in providing services 
 93.31  to the target population. 
 93.32     The commissioner shall monitor the grants and may terminate 
 93.33  a grant if the grantee does not increase dental access for 
 93.34  public program recipients.  The commissioner shall consider 
 93.35  grants for the following: 
 93.36     (i) (A) implementation of new programs or continued 
 94.1   expansion of current access programs that have demonstrated 
 94.2   success in providing dental services in underserved areas; 
 94.3      (ii) (B) a pilot program for utilizing hygienists outside 
 94.4   of a traditional dental office to provide dental hygiene 
 94.5   services; and 
 94.6      (iii) (C) a program that organizes a network of volunteer 
 94.7   dentists, establishes a system to refer eligible individuals to 
 94.8   volunteer dentists, and through that network provides donated 
 94.9   dental care services to public program recipients or uninsured 
 94.10  individuals; 
 94.11     (5) beginning October 1, 1999, the payment for tooth 
 94.12  sealants and fluoride treatments shall be the lower of (i) 
 94.13  submitted charge, or (ii) 80 percent of median 1997 charges; 
 94.14     (6) the increases listed in clauses (3) and (5) shall be 
 94.15  implemented January 1, 2000, for managed care; and 
 94.16     (7) effective for services provided on or after January 1, 
 94.17  2002, payment for diagnostic examinations and dental x-rays 
 94.18  provided to children under age 21 shall be the lower of (i) the 
 94.19  submitted charge, or (ii) 85 percent of median 1999 charges.  
 94.20     (c) Effective for dental services rendered on or after 
 94.21  January 1, 2002, the commissioner may, within the limits of 
 94.22  available appropriation, increase reimbursements to dentists and 
 94.23  dental clinics deemed by the commissioner to be critical access 
 94.24  dental providers.  Reimbursement to a critical access dental 
 94.25  provider may be increased by not more than 50 percent above the 
 94.26  reimbursement rate that would otherwise be paid to the 
 94.27  provider.  Payments to health plan companies shall be adjusted 
 94.28  to reflect increased reimbursements to critical access dental 
 94.29  providers as approved by the commissioner.  In determining which 
 94.30  dentists and dental clinics shall be deemed critical access 
 94.31  dental providers, the commissioner shall review: 
 94.32     (1) the utilization rate in the service area in which the 
 94.33  dentist or dental clinic operates for dental services to 
 94.34  patients covered by medical assistance, general assistance 
 94.35  medical care, or MinnesotaCare as their primary source of 
 94.36  coverage; 
 95.1      (2) the level of services provided by the dentist or dental 
 95.2   clinic to patients covered by medical assistance, general 
 95.3   assistance medical care, or MinnesotaCare as their primary 
 95.4   source of coverage; and 
 95.5      (3) whether the level of services provided by the dentist 
 95.6   or dental clinic is critical to maintaining adequate levels of 
 95.7   patient access within the service area. 
 95.8   In the absence of a critical access dental provider in a service 
 95.9   area, the commissioner may designate a dentist or dental clinic 
 95.10  as a critical access dental provider if the dentist or dental 
 95.11  clinic is willing to provide care to patients covered by medical 
 95.12  assistance, general assistance medical care, or MinnesotaCare at 
 95.13  a level which significantly increases access to dental care in 
 95.14  the service area. 
 95.15     (d) Effective July 1, 2001, the medical assistance rates 
 95.16  for outpatient mental health services provided by an entity that 
 95.17  operates: 
 95.18     (1) a Medicare-certified comprehensive outpatient 
 95.19  rehabilitation facility; and 
 95.20     (2) a facility that was certified prior to January 1, 1993, 
 95.21  with at least 33 percent of the clients receiving rehabilitation 
 95.22  services in the most recent calendar year who are medical 
 95.23  assistance recipients, will be increased by 38 percent, when 
 95.24  those services are provided within the comprehensive outpatient 
 95.25  rehabilitation facility and provided to residents of nursing 
 95.26  facilities owned by the entity. 
 95.27     (e) An entity that operates both a Medicare certified 
 95.28  comprehensive outpatient rehabilitation facility and a facility 
 95.29  which was certified prior to January 1, 1993, that is licensed 
 95.30  under Minnesota Rules, parts 9570.2000 to 9570.3600, and for 
 95.31  whom at least 33 percent of the clients receiving rehabilitation 
 95.32  services in the most recent calendar year are medical assistance 
 95.33  recipients, shall be reimbursed by the commissioner for 
 95.34  rehabilitation services at rates that are 38 percent greater 
 95.35  than the maximum reimbursement rate allowed under paragraph (a), 
 95.36  clause (2), when those services are (1) provided within the 
 96.1   comprehensive outpatient rehabilitation facility and (2) 
 96.2   provided to residents of nursing facilities owned by the entity. 
 96.3      (f) Effective for services rendered on or after January 1, 
 96.4   2007, the commissioner shall make payments for physician and 
 96.5   professional services based on the Medicare relative value units 
 96.6   (RVUs).  This change shall be budget neutral and the cost of 
 96.7   implementing RVUs will be incorporated in the established 
 96.8   conversion factor. 
 96.9      (g) An entity that operates a Medicare certified 
 96.10  rehabilitation facility that was designated by the commissioner 
 96.11  of health as an essential community provider under section 
 96.12  62Q.19 as of January 1, 2000, and for whom at least 25 percent 
 96.13  of the clients receiving rehabilitation services at the facility 
 96.14  or in their homes in the most recent calendar year are medical 
 96.15  assistance recipients, shall be reimbursed by the commissioner 
 96.16  for rehabilitation services provided on or after July 1, 2003, 
 96.17  at rates that are 50 percent greater than the maximum 
 96.18  reimbursement rate that would otherwise be allowed for 
 96.19  rehabilitation services provided by a Medicare certified 
 96.20  rehabilitation facility.  For purposes of this paragraph, 
 96.21  "rehabilitation services" means physical therapy, occupational 
 96.22  therapy, speech-language pathology, and audiology services.  In 
 96.23  order to qualify for the reimbursement rate authorized by this 
 96.24  paragraph, a facility must annually certify, in the time and 
 96.25  manner specified by the commissioner, that the medical 
 96.26  assistance percentage of caseload requirement was satisfied in 
 96.27  the most recent calendar year. 
 96.28     Sec. 41.  Minnesota Statutes 2002, section 256D.03, 
 96.29  subdivision 3, is amended to read: 
 96.30     Subd. 3.  [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 
 96.31  (a) General assistance medical care may be paid for any person 
 96.32  who is not eligible for medical assistance under chapter 256B, 
 96.33  including eligibility for medical assistance based on a 
 96.34  spenddown of excess income according to section 256B.056, 
 96.35  subdivision 5, or MinnesotaCare as defined in paragraph (b), 
 96.36  except as provided in paragraph (c); and: 
 97.1      (1) who is receiving assistance under section 256D.05, 
 97.2   except for families with children who are eligible under 
 97.3   Minnesota family investment program (MFIP), who is having a 
 97.4   payment made on the person's behalf under sections 256I.01 to 
 97.5   256I.06, or who resides in group residential housing as defined 
 97.6   in chapter 256I and can meet a spenddown using the cost of 
 97.7   remedial services received through group residential housing; or 
 97.8      (2)(i) who is a resident of Minnesota; and whose equity in 
 97.9   assets is not in excess of $1,000 per assistance unit.  Exempt 
 97.10  assets, the reduction of excess assets, and the waiver of excess 
 97.11  assets must conform to the medical assistance program in chapter 
 97.12  256B, with the following exception:  the maximum amount of 
 97.13  undistributed funds in a trust that could be distributed to or 
 97.14  on behalf of the beneficiary by the trustee, assuming the full 
 97.15  exercise of the trustee's discretion under the terms of the 
 97.16  trust, must be applied toward the asset maximum; and 
 97.17     (ii) who has countable income not in excess of the 
 97.18  assistance standards established in section 256B.056, 
 97.19  subdivision 5c, paragraph (b), or whose excess income is spent 
 97.20  down to that standard using a six-month budget period.  The 
 97.21  method for calculating earned income disregards and deductions 
 97.22  for a person who resides with a dependent child under age 21 
 97.23  shall follow the AFDC income disregard and deductions in effect 
 97.24  under the July 16, 1996, AFDC state plan.  The earned income and 
 97.25  work expense deductions for a person who does not reside with a 
 97.26  dependent child under age 21 shall be the same as the method 
 97.27  used to determine eligibility for a person under section 
 97.28  256D.06, subdivision 1, except the disregard of the first $50 of 
 97.29  earned income is not allowed; 
 97.30     (3) who would be eligible for medical assistance except 
 97.31  that the person resides in a facility that is determined by the 
 97.32  commissioner or the federal Centers for Medicare and Medicaid 
 97.33  Services to be an institution for mental diseases; or 
 97.34     (4) who is ineligible for medical assistance under chapter 
 97.35  256B or general assistance medical care under any other 
 97.36  provision of this section, and is receiving care and 
 98.1   rehabilitation services from a nonprofit center established to 
 98.2   serve victims of torture.  These individuals are eligible for 
 98.3   general assistance medical care only for the period during which 
 98.4   they are receiving services from the center.  During this period 
 98.5   of eligibility, individuals eligible under this clause shall not 
 98.6   be required to participate in prepaid general assistance medical 
 98.7   care.  
 98.8      (b) Beginning January 1, 2000, applicants or recipients who 
 98.9   meet all eligibility requirements of MinnesotaCare as defined in 
 98.10  sections 256L.01 to 256L.16, and are: 
 98.11     (i) adults with dependent children under 21 whose gross 
 98.12  family income is equal to or less than 275 percent of the 
 98.13  federal poverty guidelines; or 
 98.14     (ii) adults without children with earned income and whose 
 98.15  family gross income is between 75 percent of the federal poverty 
 98.16  guidelines and the amount set by section 256L.04, subdivision 7, 
 98.17  shall be terminated from general assistance medical care upon 
 98.18  enrollment in MinnesotaCare.  Earned income is deemed available 
 98.19  to family members as defined in section 256D.02, subdivision 8. 
 98.20     (c) For services rendered on or after July 1, 1997, 
 98.21  eligibility is limited to one month prior to application if the 
 98.22  person is determined eligible in the prior month.  A 
 98.23  redetermination of eligibility must occur every 12 months.  
 98.24  Beginning January 1, 2000, Minnesota health care program 
 98.25  applications completed by recipients and applicants who are 
 98.26  persons described in paragraph (b), may be returned to the 
 98.27  county agency to be forwarded to the department of human 
 98.28  services or sent directly to the department of human services 
 98.29  for enrollment in MinnesotaCare.  If all other eligibility 
 98.30  requirements of this subdivision are met, eligibility for 
 98.31  general assistance medical care shall be available in any month 
 98.32  during which a MinnesotaCare eligibility determination and 
 98.33  enrollment are pending.  Upon notification of eligibility for 
 98.34  MinnesotaCare, notice of termination for eligibility for general 
 98.35  assistance medical care shall be sent to an applicant or 
 98.36  recipient.  If all other eligibility requirements of this 
 99.1   subdivision are met, eligibility for general assistance medical 
 99.2   care shall be available until enrollment in MinnesotaCare 
 99.3   subject to the provisions of paragraph (e). 
 99.4      (d) The date of an initial Minnesota health care program 
 99.5   application necessary to begin a determination of eligibility 
 99.6   shall be the date the applicant has provided a name, address, 
 99.7   and social security number, signed and dated, to the county 
 99.8   agency or the department of human services.  If the applicant is 
 99.9   unable to provide an initial application when health care is 
 99.10  delivered due to a medical condition or disability, a health 
 99.11  care provider may act on the person's behalf to complete the 
 99.12  initial application.  The applicant must complete the remainder 
 99.13  of the application and provide necessary verification before 
 99.14  eligibility can be determined.  The county agency must assist 
 99.15  the applicant in obtaining verification if necessary.  On the 
 99.16  basis of information provided on the completed application, an 
 99.17  applicant who meets the following criteria shall be determined 
 99.18  eligible beginning in the month of application: 
 99.19     (1) has gross income less than 90 percent of the applicable 
 99.20  income standard; 
 99.21     (2) has liquid assets that total within $300 of the asset 
 99.22  standard; 
 99.23     (3) does not reside in a long-term care facility; and 
 99.24     (4) meets all other eligibility requirements. 
 99.25  The applicant must provide all required verifications within 30 
 99.26  days' notice of the eligibility determination or eligibility 
 99.27  shall be terminated. 
 99.28     (e) County agencies are authorized to use all automated 
 99.29  databases containing information regarding recipients' or 
 99.30  applicants' income in order to determine eligibility for general 
 99.31  assistance medical care or MinnesotaCare.  Such use shall be 
 99.32  considered sufficient in order to determine eligibility and 
 99.33  premium payments by the county agency. 
 99.34     (f) General assistance medical care is not available for a 
 99.35  person in a correctional facility unless the person is detained 
 99.36  by law for less than one year in a county correctional or 
100.1   detention facility as a person accused or convicted of a crime, 
100.2   or admitted as an inpatient to a hospital on a criminal hold 
100.3   order, and the person is a recipient of general assistance 
100.4   medical care at the time the person is detained by law or 
100.5   admitted on a criminal hold order and as long as the person 
100.6   continues to meet other eligibility requirements of this 
100.7   subdivision.  
100.8      (g) General assistance medical care is not available for 
100.9   applicants or recipients who do not cooperate with the county 
100.10  agency to meet the requirements of medical assistance.  General 
100.11  assistance medical care is limited to payment of emergency 
100.12  services only for applicants or recipients as described in 
100.13  paragraph (b), whose MinnesotaCare coverage is denied or 
100.14  terminated for nonpayment of premiums as required by sections 
100.15  256L.06 and 256L.07.  
100.16     (h) In determining the amount of assets of an individual, 
100.17  there shall be included any asset or interest in an asset, 
100.18  including an asset excluded under paragraph (a), that was given 
100.19  away, sold, or disposed of for less than fair market value 
100.20  within the 60 months preceding application for general 
100.21  assistance medical care or during the period of eligibility.  
100.22  Any transfer described in this paragraph shall be presumed to 
100.23  have been for the purpose of establishing eligibility for 
100.24  general assistance medical care, unless the individual furnishes 
100.25  convincing evidence to establish that the transaction was 
100.26  exclusively for another purpose.  For purposes of this 
100.27  paragraph, the value of the asset or interest shall be the fair 
100.28  market value at the time it was given away, sold, or disposed 
100.29  of, less the amount of compensation received.  For any 
100.30  uncompensated transfer, the number of months of ineligibility, 
100.31  including partial months, shall be calculated by dividing the 
100.32  uncompensated transfer amount by the average monthly per person 
100.33  payment made by the medical assistance program to skilled 
100.34  nursing facilities for the previous calendar year.  The 
100.35  individual shall remain ineligible until this fixed period has 
100.36  expired.  The period of ineligibility may exceed 30 months, and 
101.1   a reapplication for benefits after 30 months from the date of 
101.2   the transfer shall not result in eligibility unless and until 
101.3   the period of ineligibility has expired.  The period of 
101.4   ineligibility begins in the month the transfer was reported to 
101.5   the county agency, or if the transfer was not reported, the 
101.6   month in which the county agency discovered the transfer, 
101.7   whichever comes first.  For applicants, the period of 
101.8   ineligibility begins on the date of the first approved 
101.9   application. 
101.10     (i) When determining eligibility for any state benefits 
101.11  under this subdivision, the income and resources of all 
101.12  noncitizens shall be deemed to include their sponsor's income 
101.13  and resources as defined in the Personal Responsibility and Work 
101.14  Opportunity Reconciliation Act of 1996, title IV, Public 
101.15  Law Number 104-193, sections 421 and 422, and subsequently set 
101.16  out in federal rules. 
101.17     (j)(1) An undocumented noncitizen or a nonimmigrant is 
101.18  ineligible for general assistance medical care other than 
101.19  emergency services.  For purposes of this subdivision, a 
101.20  nonimmigrant is an individual in one or more of the classes 
101.21  listed in United States Code, title 8, section 1101(a)(15), and 
101.22  an undocumented noncitizen is an individual who resides in the 
101.23  United States without the approval or acquiescence of the 
101.24  Immigration and Naturalization Service. 
101.25     (2) This paragraph does not apply to a child under age 18, 
101.26  to a Cuban or Haitian entrant as defined in Public Law Number 
101.27  96-422, section 501(e)(1) or (2)(a), or to a noncitizen who is 
101.28  aged, blind, or disabled as defined in Code of Federal 
101.29  Regulations, title 42, sections 435.520, 435.530, 435.531, 
101.30  435.540, and 435.541, or effective October 1, 1998, to an 
101.31  individual eligible for general assistance medical care under 
101.32  paragraph (a), clause (4), who cooperates with the Immigration 
101.33  and Naturalization Service to pursue any applicable immigration 
101.34  status, including citizenship, that would qualify the individual 
101.35  for medical assistance with federal financial participation. 
101.36     (k) For purposes of paragraphs (g) and (j), "emergency 
102.1   services" has the meaning given in Code of Federal Regulations, 
102.2   title 42, section 440.255(b)(1), except that it also means 
102.3   services rendered because of suspected or actual pesticide 
102.4   poisoning.  
102.5      (l) Notwithstanding any other provision of law, a 
102.6   noncitizen who is ineligible for medical assistance due to the 
102.7   deeming of a sponsor's income and resources, is ineligible for 
102.8   general assistance medical care. 
102.9      <b>[EFFECTIVE DATE.]</b> This section is repealed April 1, 2005, 
102.10  if the HealthMatch system is operational.  If the HealthMatch 
102.11  system is not operational, this section is effective July 1, 
102.12  2005. 
102.13     Sec. 42.  Minnesota Statutes 2002, section 256D.03, 
102.14  subdivision 4, is amended to read: 
102.15     Subd. 4.  [GENERAL ASSISTANCE MEDICAL CARE; SERVICES.] (a) 
102.16  For a person who is eligible under subdivision 3, paragraph (a), 
102.17  clause (3), general assistance medical care covers, except as 
102.18  provided in paragraph (c): 
102.19     (1) inpatient hospital services; 
102.20     (2) outpatient hospital services; 
102.21     (3) services provided by Medicare certified rehabilitation 
102.22  agencies; 
102.23     (4) prescription drugs and other products recommended 
102.24  through the process established in section 256B.0625, 
102.25  subdivision 13; 
102.26     (5) equipment necessary to administer insulin and 
102.27  diagnostic supplies and equipment for diabetics to monitor blood 
102.28  sugar level; 
102.29     (6) eyeglasses and eye examinations provided by a physician 
102.30  or optometrist; 
102.31     (7) hearing aids; 
102.32     (8) prosthetic devices; 
102.33     (9) laboratory and X-ray services; 
102.34     (10) physician's services; 
102.35     (11) medical transportation; 
102.36     (12) chiropractic services as covered under the medical 
103.1   assistance program; 
103.2      (13) podiatric services; 
103.3      (14) dental services; 
103.4      (15) outpatient services provided by a mental health center 
103.5   or clinic that is under contract with the county board and is 
103.6   established under section 245.62; 
103.7      (16) day treatment services for mental illness provided 
103.8   under contract with the county board; 
103.9      (17) prescribed medications for persons who have been 
103.10  diagnosed as mentally ill as necessary to prevent more 
103.11  restrictive institutionalization; 
103.12     (18) psychological services, medical supplies and 
103.13  equipment, and Medicare premiums, coinsurance and deductible 
103.14  payments; 
103.15     (19) medical equipment not specifically listed in this 
103.16  paragraph when the use of the equipment will prevent the need 
103.17  for costlier services that are reimbursable under this 
103.18  subdivision; 
103.19     (20) services performed by a certified pediatric nurse 
103.20  practitioner, a certified family nurse practitioner, a certified 
103.21  adult nurse practitioner, a certified obstetric/gynecological 
103.22  nurse practitioner, a certified neonatal nurse practitioner, or 
103.23  a certified geriatric nurse practitioner in independent 
103.24  practice, if (1) the service is otherwise covered under this 
103.25  chapter as a physician service, (2) the service provided on an 
103.26  inpatient basis is not included as part of the cost for 
103.27  inpatient services included in the operating payment rate, and 
103.28  (3) the service is within the scope of practice of the nurse 
103.29  practitioner's license as a registered nurse, as defined in 
103.30  section 148.171; 
103.31     (21) services of a certified public health nurse or a 
103.32  registered nurse practicing in a public health nursing clinic 
103.33  that is a department of, or that operates under the direct 
103.34  authority of, a unit of government, if the service is within the 
103.35  scope of practice of the public health nurse's license as a 
103.36  registered nurse, as defined in section 148.171; and 
104.1      (22) telemedicine consultations, to the extent they are 
104.2   covered under section 256B.0625, subdivision 3b.  
104.3      (b) Except as provided in paragraph (c), for a recipient 
104.4   who is eligible under subdivision 3, paragraph (a), clause (1) 
104.5   or (2), general assistance medical care covers the services 
104.6   listed in paragraph (a) with the exception of special 
104.7   transportation services. 
104.8      (c) Gender reassignment surgery and related services are 
104.9   not covered services under this subdivision unless the 
104.10  individual began receiving gender reassignment services prior to 
104.11  July 1, 1995.  
104.12     (d) In order to contain costs, the commissioner of human 
104.13  services shall select vendors of medical care who can provide 
104.14  the most economical care consistent with high medical standards 
104.15  and shall where possible contract with organizations on a 
104.16  prepaid capitation basis to provide these services.  The 
104.17  commissioner shall consider proposals by counties and vendors 
104.18  for prepaid health plans, competitive bidding programs, block 
104.19  grants, or other vendor payment mechanisms designed to provide 
104.20  services in an economical manner or to control utilization, with 
104.21  safeguards to ensure that necessary services are provided.  
104.22  Before implementing prepaid programs in counties with a county 
104.23  operated or affiliated public teaching hospital or a hospital or 
104.24  clinic operated by the University of Minnesota, the commissioner 
104.25  shall consider the risks the prepaid program creates for the 
104.26  hospital and allow the county or hospital the opportunity to 
104.27  participate in the program in a manner that reflects the risk of 
104.28  adverse selection and the nature of the patients served by the 
104.29  hospital, provided the terms of participation in the program are 
104.30  competitive with the terms of other participants considering the 
104.31  nature of the population served.  Payment for services provided 
104.32  pursuant to this subdivision shall be as provided to medical 
104.33  assistance vendors of these services under sections 256B.02, 
104.34  subdivision 8, and 256B.0625.  For payments made during fiscal 
104.35  year 1990 and later years, the commissioner shall consult with 
104.36  an independent actuary in establishing prepayment rates, but 
105.1   shall retain final control over the rate methodology.  
105.2   Notwithstanding the provisions of subdivision 3, an individual 
105.3   who becomes ineligible for general assistance medical care 
105.4   because of failure to submit income reports or recertification 
105.5   forms in a timely manner, shall remain enrolled in the prepaid 
105.6   health plan and shall remain eligible for general assistance 
105.7   medical care coverage through the last day of the month in which 
105.8   the enrollee became ineligible for general assistance medical 
105.9   care. 
105.10     (e) There shall be no co-payment required of any recipient 
105.11  of benefits for any services provided under this subdivision.  A 
105.12  hospital receiving a reduced payment as a result of this section 
105.13  may apply the unpaid balance toward satisfaction of the 
105.14  hospital's bad debts. 
105.15     (f) Any county may, from its own resources, provide medical 
105.16  payments for which state payments are not made. 
105.17     (g) Chemical dependency services that are reimbursed under 
105.18  chapter 254B must not be reimbursed under general assistance 
105.19  medical care. 
105.20     (h) The maximum payment for new vendors enrolled in the 
105.21  general assistance medical care program after the base year 
105.22  shall be determined from the average usual and customary charge 
105.23  of the same vendor type enrolled in the base year. 
105.24     (i) The conditions of payment for services under this 
105.25  subdivision are the same as the conditions specified in rules 
105.26  adopted under chapter 256B governing the medical assistance 
105.27  program, unless otherwise provided by statute or rule. 
105.28     Sec. 43.  Minnesota Statutes 2002, section 256L.05, 
105.29  subdivision 3a, is amended to read: 
105.30     Subd. 3a.  [RENEWAL OF ELIGIBILITY.] (a) Beginning January 
105.31  1, 1999, an enrollee's eligibility must be renewed every 12 
105.32  months.  The 12-month period begins in the month after the month 
105.33  the application is approved.  
105.34     (b) Beginning October 1, 2004, an enrollee's eligibility 
105.35  must be renewed every six months.  The first six-month period of 
105.36  eligibility begins in the month after the month the application 
106.1   is approved.  Each new period of eligibility must take into 
106.2   account any changes in circumstances that impact eligibility and 
106.3   premium amount.  An enrollee must provide all the information 
106.4   needed to redetermine eligibility by the first day of the month 
106.5   that ends the eligibility period.  The premium for the new 
106.6   period of eligibility must be received as provided in section 
106.7   256L.06 in order for eligibility to continue. 
106.8      Sec. 44.  Minnesota Statutes 2002, section 256L.05, 
106.9   subdivision 4, is amended to read: 
106.10     Subd. 4.  [APPLICATION PROCESSING.] The commissioner of 
106.11  human services shall determine an applicant's eligibility for 
106.12  MinnesotaCare no more than 30 days from the date that the 
106.13  application is received by the department of human services.  
106.14  Beginning January 1, 2000, this requirement also applies to 
106.15  local county human services agencies that determine eligibility 
106.16  for MinnesotaCare.  Once annually at application or 
106.17  reenrollment, to prevent processing delays, applicants or 
106.18  enrollees who, from the information provided on the application, 
106.19  appear to meet eligibility requirements shall be enrolled upon 
106.20  timely payment of premiums.  The enrollee must provide all 
106.21  required verifications within 30 days of notification of the 
106.22  eligibility determination or coverage from the program shall be 
106.23  terminated.  Enrollees who are determined to be ineligible when 
106.24  verifications are provided shall be disenrolled from the program.
106.25     <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2005, 
106.26  if the HealthMatch system is operational.  If the HealthMatch 
106.27  system is not operational on April 1, 2005, then this section is 
106.28  effective July 1, 2005. 
106.29     Sec. 45.  Minnesota Statutes 2002, section 256L.06, 
106.30  subdivision 3, is amended to read: 
106.31     Subd. 3.  [COMMISSIONER'S DUTIES AND PAYMENT.] (a) Premiums 
106.32  are dedicated to the commissioner for MinnesotaCare. 
106.33     (b) The commissioner shall develop and implement procedures 
106.34  to:  (1) require enrollees to report changes in income; (2) 
106.35  adjust sliding scale premium payments, based upon changes in 
106.36  enrollee income; and (3) disenroll enrollees from MinnesotaCare 
107.1   for failure to pay required premiums; and (4) collect the 
107.2   premiums from employers choosing to participate in the 
107.3   employer-subsidized coverage exemption as described in section 
107.4   256L.15, subdivision 4.  Failure to pay includes payment with a 
107.5   dishonored check, a returned automatic bank withdrawal, or a 
107.6   refused credit card or debit card payment.  The commissioner may 
107.7   demand a guaranteed form of payment, including a cashier's check 
107.8   or a money order, as the only means to replace a dishonored, 
107.9   returned, or refused payment. 
107.10     (c) Premiums are calculated on a calendar month basis and 
107.11  may be paid on a monthly, quarterly, or annual semiannual basis, 
107.12  with the first payment due upon notice from the commissioner of 
107.13  the premium amount required.  The commissioner shall inform 
107.14  applicants and enrollees of these premium payment options. 
107.15  Premium payment is required before enrollment is complete and to 
107.16  maintain eligibility in MinnesotaCare.  Premium payments 
107.17  received before noon are credited the same day.  Premium 
107.18  payments received after noon are credited on the next working 
107.19  day.  
107.20     (d) Nonpayment of the premium will result in disenrollment 
107.21  from the plan effective for the calendar month for which the 
107.22  premium was due.  Persons disenrolled for nonpayment or who 
107.23  voluntarily terminate coverage from the program may not reenroll 
107.24  until four calendar months have elapsed.  Persons disenrolled 
107.25  for nonpayment who pay all past due premiums as well as current 
107.26  premiums due, including premiums due for the period of 
107.27  disenrollment, within 20 days of disenrollment, shall be 
107.28  reenrolled retroactively to the first day of disenrollment.  
107.29  Persons disenrolled for nonpayment or who voluntarily terminate 
107.30  coverage from the program may not reenroll for four calendar 
107.31  months unless the person demonstrates good cause for 
107.32  nonpayment.  Good cause does not exist if a person chooses to 
107.33  pay other family expenses instead of the premium.  The 
107.34  commissioner shall define good cause in rule. 
107.35     <b>[EFFECTIVE DATE.]</b> Subdivision 3, paragraph (c), is 
107.36  effective October 1, 2004. 
108.1      Sec. 46.  Minnesota Statutes 2002, section 256L.07, 
108.2   subdivision 1, is amended to read: 
108.3      Subdivision 1.  [GENERAL REQUIREMENTS.] (a) Children 
108.4   enrolled in the original children's health plan as of September 
108.5   30, 1992, children who enrolled in the MinnesotaCare program 
108.6   after September 30, 1992, pursuant to Laws 1992, chapter 549, 
108.7   article 4, section 17, and children who have family gross 
108.8   incomes that are equal to or less than 175 150 percent of the 
108.9   federal poverty guidelines are eligible without meeting the 
108.10  requirements of subdivision 2 or the four-month requirement in 
108.11  subdivision 3, as long as they maintain continuous coverage in 
108.12  the MinnesotaCare program or medical assistance or they meet the 
108.13  requirements of subdivision 5.  Children who apply for 
108.14  MinnesotaCare on or after the implementation date of the 
108.15  employer-subsidized health coverage program as described in Laws 
108.16  1998, chapter 407, article 5, section 45, who have family gross 
108.17  incomes that are equal to or less than 175 percent of the 
108.18  federal poverty guidelines, must meet the requirements of 
108.19  subdivision 2 to be eligible for MinnesotaCare. 
108.20     (b) Families enrolled in MinnesotaCare under section 
108.21  256L.04, subdivision 1, whose income increases above 275 percent 
108.22  of the federal poverty guidelines, are no longer eligible for 
108.23  the program and shall be disenrolled by the commissioner.  
108.24  Individuals enrolled in MinnesotaCare under section 256L.04, 
108.25  subdivision 7, whose income increases above 175 percent of the 
108.26  federal poverty guidelines are no longer eligible for the 
108.27  program and shall be disenrolled by the commissioner.  For 
108.28  persons disenrolled under this subdivision, MinnesotaCare 
108.29  coverage terminates the last day of the calendar month following 
108.30  the month in which the commissioner determines that the income 
108.31  of a family or individual exceeds program income limits.  
108.32     (c) Notwithstanding paragraph (b), individuals and families 
108.33  may remain enrolled in MinnesotaCare if ten percent of their 
108.34  annual income is less than the annual premium for a policy with 
108.35  a $500 deductible available through the Minnesota comprehensive 
108.36  health association.  Individuals and families who are no longer 
109.1   eligible for MinnesotaCare under this subdivision shall be given 
109.2   an 18-month notice period from the date that ineligibility is 
109.3   determined before disenrollment. 
109.4      Sec. 47.  Minnesota Statutes 2002, section 256L.07, 
109.5   subdivision 3, is amended to read: 
109.6      Subd. 3.  [OTHER HEALTH COVERAGE.] (a) Families and 
109.7   individuals enrolled in the MinnesotaCare program must have no 
109.8   health coverage while enrolled or for at least four months prior 
109.9   to application and renewal.  Children enrolled in the original 
109.10  children's health plan and children in families with income 
109.11  equal to or less than 175 150 percent of the federal poverty 
109.12  guidelines, who have other health insurance, are eligible if the 
109.13  coverage: 
109.14     (1) lacks two or more of the following: 
109.15     (i) basic hospital insurance; 
109.16     (ii) medical-surgical insurance; 
109.17     (iii) prescription drug coverage; 
109.18     (iv) dental coverage; or 
109.19     (v) vision coverage; 
109.20     (2) requires a deductible of $100 or more per person per 
109.21  year; or 
109.22     (3) lacks coverage because the child has exceeded the 
109.23  maximum coverage for a particular diagnosis or the policy 
109.24  excludes a particular diagnosis. 
109.25     The commissioner may change this eligibility criterion for 
109.26  sliding scale premiums in order to remain within the limits of 
109.27  available appropriations.  The requirement of no health coverage 
109.28  does not apply to newborns. 
109.29     (b) Medical assistance, general assistance medical care, 
109.30  and the Civilian Health and Medical Program of the Uniformed 
109.31  Service, CHAMPUS, or other coverage provided under United States 
109.32  Code, title 10, subtitle A, part II, chapter 55, are not 
109.33  considered insurance or health coverage for purposes of the 
109.34  four-month requirement described in this subdivision. 
109.35     (c) For purposes of this subdivision, Medicare Part A or B 
109.36  coverage under title XVIII of the Social Security Act, United 
110.1   States Code, title 42, sections 1395c to 1395w-4, is considered 
110.2   health coverage.  An applicant or enrollee may not refuse 
110.3   Medicare coverage to establish eligibility for MinnesotaCare. 
110.4      (d) Applicants who were recipients of medical assistance or 
110.5   general assistance medical care within one month of application 
110.6   must meet the provisions of this subdivision and subdivision 2. 
110.7      (e) Effective October 1, 2003, applicants who were 
110.8   recipients of medical assistance and had cost-effective health 
110.9   insurance which was paid for by medical assistance are exempt 
110.10  from the four-month requirement under this subdivision. 
110.11     Sec. 48.  Minnesota Statutes 2002, section 256L.07, is 
110.12  amended by adding a subdivision to read: 
110.13     Subd. 5.  [EMPLOYER-SUBSIDIZED COVERAGE 
110.14  EXEMPTION.] Children in families with family gross income equal 
110.15  to or less than 170 percent of the federal poverty guidelines 
110.16  who have access to employer-subsidized coverage as defined in 
110.17  subdivision 2 are eligible for MinnesotaCare without meeting the 
110.18  requirements of subdivision 2 if the following requirements are 
110.19  met:  
110.20     (1) all eligibility requirements except for the 
110.21  requirements of subdivision 2 are met by the child; 
110.22     (2) any premiums owed as determined under section 256L.15 
110.23  are paid in accordance with section 256L.06; and 
110.24     (3) the employer meets the requirements described in 
110.25  section 256L.15, subdivision 4. 
110.26     Sec. 49.  Minnesota Statutes 2002, section 256L.15, 
110.27  subdivision 3, is amended to read: 
110.28     Subd. 3.  [EXCEPTIONS TO SLIDING SCALE.] An annual premium 
110.29  of $48 is required for all children in families with income at 
110.30  or less than 175 150 percent of federal poverty guidelines. 
110.31     Sec. 50.  Minnesota Statutes 2002, section 256L.15, is 
110.32  amended by adding a subdivision to read: 
110.33     Subd. 4.  [EMPLOYER-SUBSIDIZED INSURANCE EXCEPTION.] Any 
110.34  employer of a parent of a child who may be eligible for 
110.35  MinnesotaCare under section 256L.07, subdivision 5, must choose 
110.36  to contribute 25 percent of the total cost of the coverage as 
111.1   calculated under subdivision 2 for the child to be eligible for 
111.2   MinnesotaCare under section 256L.07, subdivision 5.  Any 
111.3   employer who chooses to participate must pay the premium owed to 
111.4   the commissioner in accordance with section 256L.06. 
111.5      Sec. 51.  Minnesota Statutes 2002, section 295.53, 
111.6   subdivision 1, is amended to read: 
111.7      Subdivision 1.  [EXEMPTIONS.] (a) The following payments 
111.8   are excluded from the gross revenues subject to the hospital, 
111.9   surgical center, or health care provider taxes under sections 
111.10  295.50 to 295.57: 
111.11     (1) payments received for services provided under the 
111.12  Medicare program, including payments received from the 
111.13  government, and organizations governed by sections 1833 and 1876 
111.14  of title XVIII of the federal Social Security Act, United States 
111.15  Code, title 42, section 1395, and enrollee deductibles, 
111.16  coinsurance, and co-payments, whether paid by the Medicare 
111.17  enrollee or by a Medicare supplemental coverage as defined in 
111.18  section 62A.011, subdivision 3, clause (10).  Payments for 
111.19  services not covered by Medicare are taxable; 
111.20     (2) medical assistance payments including payments received 
111.21  directly from the government or from a prepaid plan; 
111.22     (3) payments received for home health care services; 
111.23     (4) (3) payments received from hospitals or surgical 
111.24  centers for goods and services on which liability for tax is 
111.25  imposed under section 295.52 or the source of funds for the 
111.26  payment is exempt under clause (1), (2), (7), (8), 
111.27  (10) (7), (13) (10), or (20) (17); 
111.28     (5) (4) payments received from health care providers for 
111.29  goods and services on which liability for tax is imposed under 
111.30  this chapter or the source of funds for the payment is exempt 
111.31  under clause (1), (2), (7), (8), (10) (7), (13) (10), 
111.32  or (20) (17); 
111.33     (6) (5) amounts paid for legend drugs, other than 
111.34  nutritional products, to a wholesale drug distributor who is 
111.35  subject to tax under section 295.52, subdivision 3, reduced by 
111.36  reimbursements received for legend drugs otherwise exempt under 
112.1   this chapter; 
112.2      (7) payments received under the general assistance medical 
112.3   care program including payments received directly from the 
112.4   government or from a prepaid plan; 
112.5      (8) payments received for providing services under the 
112.6   MinnesotaCare program including payments received directly from 
112.7   the government or from a prepaid plan and enrollee deductibles, 
112.8   coinsurance, and copayments.  For purposes of this clause, 
112.9   coinsurance means the portion of payment that the enrollee is 
112.10  required to pay for the covered service; 
112.11     (9) (6) payments received by a health care provider or the 
112.12  wholly owned subsidiary of a health care provider for care 
112.13  provided outside Minnesota; 
112.14     (10) (7) payments received from the chemical dependency 
112.15  fund under chapter 254B; 
112.16     (11) (8) payments received in the nature of charitable 
112.17  donations that are not designated for providing patient services 
112.18  to a specific individual or group; 
112.19     (12) (9) payments received for providing patient services 
112.20  incurred through a formal program of health care research 
112.21  conducted in conformity with federal regulations governing 
112.22  research on human subjects.  Payments received from patients or 
112.23  from other persons paying on behalf of the patients are subject 
112.24  to tax; 
112.25     (13) (10) payments received from any governmental agency 
112.26  for services benefiting the public, not including payments made 
112.27  by the government in its capacity as an employer or insurer or 
112.28  payments made by the government for services provided under 
112.29  medical assistance, general assistance medical care, or the 
112.30  MinnesotaCare program; 
112.31     (14) (11) payments received for services provided by 
112.32  community residential mental health facilities licensed under 
112.33  Minnesota Rules, parts 9520.0500 to 9520.0690, community support 
112.34  programs and family community support programs approved under 
112.35  Minnesota Rules, parts 9535.1700 to 9535.1760, and community 
112.36  mental health centers as defined in section 245.62, subdivision 
113.1   2; 
113.2      (15) (12) government payments received by a regional 
113.3   treatment center; 
113.4      (16) (13) payments received for hospice care services; 
113.5      (17) (14) payments received by a health care provider for 
113.6   hearing aids and related equipment or prescription eyewear 
113.7   delivered outside of Minnesota; 
113.8      (18) (15) payments received by an educational institution 
113.9   from student tuition, student activity fees, health care service 
113.10  fees, government appropriations, donations, or grants.  Fee for 
113.11  service payments and payments for extended coverage are taxable; 
113.12     (19) (16) payments received for services provided by:  
113.13  assisted living programs and congregate housing programs; and 
113.14     (20) (17) payments received under the federal Employees 
113.15  Health Benefits Act, United States Code, title 5, section 
113.16  8909(f), as amended by the Omnibus Reconciliation Act of 1990. 
113.17     (b) Payments received by wholesale drug distributors for 
113.18  legend drugs sold directly to veterinarians or veterinary bulk 
113.19  purchasing organizations are excluded from the gross revenues 
113.20  subject to the wholesale drug distributor tax under sections 
113.21  295.50 to 295.59. 
113.22     Sec. 52.  Minnesota Statutes 2002, section 297I.15, 
113.23  subdivision 1, is amended to read: 
113.24     Subdivision 1.  [GOVERNMENT PAYMENTS.] Premiums under 
113.25  medical assistance, general assistance medical care, the 
113.26  MinnesotaCare program, and the Minnesota comprehensive health 
113.27  insurance plan and all payments, revenues, and reimbursements 
113.28  received from the federal government for Medicare-related 
113.29  coverage as defined in section 62A.31, subdivision 3, are not 
113.30  subject to tax under this chapter. 
113.31     Sec. 53.  Minnesota Statutes 2002, section 297I.15, 
113.32  subdivision 4, is amended to read: 
113.33     Subd. 4.  [PREMIUMS PAID TO HEALTH CARRIERS BY STATE.] A 
113.34  health carrier as defined in section 62A.011 is exempt from the 
113.35  taxes imposed under this chapter on premiums paid to it by the 
113.36  state.  Premiums paid by the state under medical assistance, 
114.1   general assistance medical care, and the MinnesotaCare program 
114.2   are not exempt under this subdivision. 
114.3      Sec. 54.  [REVIEW OF SPECIAL TRANSPORTATION ELIGIBILITY 
114.4   CRITERIA AND POTENTIAL COST SAVINGS.] 
114.5      The commissioner of human services, in consultation with 
114.6   the commissioner of transportation and special transportation 
114.7   service providers, shall review eligibility criteria for medical 
114.8   assistance special transportation services and shall evaluate 
114.9   whether the level of special transportation services provided 
114.10  should be based on the degree of impairment of the client, as 
114.11  well as the medical diagnosis.  The commissioner shall also 
114.12  evaluate methods for reducing the cost of special transportation 
114.13  services, including, but not limited to: 
114.14     (1) requiring providers to maintain a daily log book 
114.15  confirming delivery of clients to medical facilities; 
114.16     (2) requiring providers to implement commercially available 
114.17  computer mapping programs to calculate mileage for purposes of 
114.18  reimbursement; 
114.19     (3) restricting special transportation service from being 
114.20  provided solely for trips to pharmacies; 
114.21     (4)modifying eligibility for special transportation; 
114.22     (5) expanding alternatives to the use of special 
114.23  transportation services; 
114.24     (6) improving the process of certifying persons as eligible 
114.25  for special transportation services; and 
114.26     (7) examining the feasibility and benefits of licensing 
114.27  special transportation providers. 
114.28     The commissioner shall present recommendations for changes 
114.29  in the eligibility criteria and potential cost-savings for 
114.30  special transportation services to the chairs and ranking 
114.31  minority members of the house and senate committees having 
114.32  jurisdiction over health and human services spending by January 
114.33  15, 2004.  The commissioner is prohibited from using a broker or 
114.34  coordinator to manage special transportation services until July 
114.35  1, 2005, except for the purposes of checking for recipient 
114.36  eligibility, authorizing recipients for appropriate level of 
115.1   transportation, and monitoring provider compliance with section 
115.2   256B.0625, subdivision 17.  This prohibition does not apply to 
115.3   the purchase or management of common carrier transportation. 
115.4      Sec. 55.  [WITHHOLD EXEMPTION.] 
115.5      The commissioner of human services may exempt from the five 
115.6   percent withhold in Minnesota Statutes, section 256B.69, 
115.7   subdivision 5a, paragraph (c), and the .5 percent withhold in 
115.8   Minnesota Statutes, section 256L.12, subdivision 9, paragraph 
115.9   (b), a managed care plan that has entered into a managed care 
115.10  contract with the commissioner in accordance with Minnesota 
115.11  Statutes, section 256B.69 or 256L.12, if the contract was the 
115.12  initial contract between the managed care plan and the 
115.13  commissioner, and it was entered into after January 1, 2000.  
115.14     If an exemption is given, the exemption shall only apply 
115.15  for the first five years of operation of the managed care plan. 
115.16     Sec. 56.  [PHARMACY PLUS WAIVER.] 
115.17     (a) The commissioner of human services shall seek a 
115.18  pharmacy plus federal waiver for the prescription drug program 
115.19  in Minnesota Statutes, section 256.955.  If the waiver is 
115.20  approved and federal funds are received for the prescription 
115.21  drug program, the commissioner shall expand eligibility for the 
115.22  program in the following order:  
115.23     (1) increase income eligibility up to 135 percent of the 
115.24  federal poverty guidelines for individuals eligible under 
115.25  Minnesota Statutes, section 256.955, subdivision 2a; and 
115.26     (2) increase income eligibility up to 135 percent of the 
115.27  federal poverty guidelines for individuals eligible under 
115.28  Minnesota Statutes, section 256.955, subdivision 2b. 
115.29     (b) If eligibility is increased, the commissioner shall 
115.30  publish the new income eligibility levels for the program in the 
115.31  State Register and shall inform the agencies and organizations 
115.32  serving senior citizens and persons with disabilities.  
115.33     Sec. 57.  [DRUG PURCHASING PROGRAM.] 
115.34     The commissioner of human services, in consultation with 
115.35  other state agencies, shall evaluate whether participation in a 
115.36  multistate or multiagency drug purchasing program can reduce 
116.1   costs or improve the operations of the drug benefit programs 
116.2   administered by the commissioner and other state agencies.  The 
116.3   commissioner shall also evaluate the possibility of contracting 
116.4   with a vendor or other states for purposes of participating in a 
116.5   multistate or multiagency drug purchasing program.  The 
116.6   commissioner shall submit the recommendations to the legislature 
116.7   by January 15, 2004. 
116.8      Sec. 58.  [MAIL ORDER DISPENSING OF PRESCRIPTION DRUGS.] 
116.9      The commissioner of human services shall assess the cost 
116.10  savings that could be generated by the mail order dispensing of 
116.11  prescription drugs to recipients of medical assistance, general 
116.12  assistance medical care, and the prescription drug program.  The 
116.13  report shall include the viability of contracting with mail 
116.14  order pharmacy vendors to provide mail order dispensing for 
116.15  state public programs.  The commissioner shall report to the 
116.16  chairs and ranking minority members of the health and human 
116.17  services finance committees by January 7, 2004. 
116.18     Sec. 59.  [NONPROFIT FOUNDATION GRANTS.] 
116.19     (a) The commissioner of human services may accept grants or 
116.20  donations from a nonprofit charitable foundation for the purpose 
116.21  of increasing dental access in the medical assistance program.  
116.22     (b) The commissioner may increase the critical access 
116.23  dental payments under Minnesota Statutes, section 256B.76, 
116.24  paragraph (c), and use any money received under paragraph (a) 
116.25  for the nonfederal state share of the medical assistance cost. 
116.26     Sec. 60.  [LIMITING COVERAGE OF HEALTH CARE SERVICES FOR 
116.27  MEDICAL ASSISTANCE, GENERAL ASSISTANCE MEDICAL CARE, AND 
116.28  MINNESOTACARE PROGRAMS.] 
116.29     Subdivision 1.  [GENERAL ASSISTANCE MEDICAL CARE AND 
116.30  MINNESOTACARE.] (a) Effective July 1, 2003, the 
116.31  diagnosis/treatment pairings described in subdivision 3 shall 
116.32  not be covered under the general assistance medical care program 
116.33  and under the MinnesotaCare program for persons eligible under 
116.34  Minnesota Statutes, section 256L.04, subdivision 7.  
116.35     (b) This subdivision expires July 1, 2005.  
116.36     Subd. 2.  [PRIOR AUTHORIZATION OF SERVICES FOR MEDICAL 
117.1   ASSISTANCE.] (a) Effective July 1, 2003, prior authorization 
117.2   shall be required for the diagnosis/treatment pairings described 
117.3   in subdivision 3 for reimbursement under Minnesota Statutes, 
117.4   chapter 256B, and under the MinnesotaCare program for persons 
117.5   eligible under Minnesota Statutes, section 256L.04, subdivision 
117.6   1.  
117.7      (b) This subdivision expires July 1, 2005.  
117.8      Subd. 3.  [LIST OF DIAGNOSIS/TREATMENT PAIRINGS.] (a)(1) 
117.9   Diagnosis:  TRIGEMINAL AND OTHER NERVE DISORDERS 
117.10  Treatment:  MEDICAL AND SURGICAL TREATMENT 
117.11  ICD-9:  350,352 
117.12     (2) Diagnosis:  DISRUPTIONS OF THE LIGAMENTS AND TENDONS OF 
117.13  THE ARMS AND LEGS, EXCLUDING THE KNEE, GRADE II AND III 
117.14  Treatment:  REPAIR 
117.15  ICD-9:  726.5, 727.59, 727.62-727.65, 727.68-727.69, 728.83, 
117.16  728.89, 840.0-840.3, 840.5-840.9, 841-843, 845.0 
117.17     (3) Diagnosis:  DISORDERS OF SHOULDER 
117.18  Treatment:  REPAIR/RECONSTRUCTION 
117.19  ICD-9:  718.01, 718.11, 718.21, 718.31, 718.41, 718.51, 718.81, 
117.20  726.0, 726.10-726.11, 726.19, 726.2, 727.61, 840.4, 840.7 
117.21     (4) Diagnosis:  INTERNAL DERANGEMENT OF KNEE AND 
117.22  LIGAMENTOUS DISRUPTIONS OF THE KNEE, GRADE II AND III 
117.23  Treatment:  REPAIR, MEDICAL THERAPY 
117.24  ICD-9:  717.0-717.4, 717.6-717.8, 718.26, 718.36, 718.46, 
117.25  718.56, 727.66, 836.0-836.2, 844 
117.26     (5) Diagnosis:  MALUNION AND NONUNION OF FRACTURE 
117.27  Treatment:  SURGICAL TREATMENT 
117.28  ICD-9:  733.8 
117.29     (6) Diagnosis:  FOREIGN BODY IN UTERUS, VULVA AND VAGINA 
117.30  Treatment:  MEDICAL AND SURGICAL TREATMENT 
117.31  ICD-9:  939.1-939.2 
117.32     (7) Diagnosis: UTERINE PROLAPSE; CYSTOCELE 
117.33  Treatment:  SURGICAL REPAIR 
117.34  ICD-9:  618 
117.35     (8) Diagnosis:  OSTEOARTHRITIS AND ALLIED DISORDERS 
117.36  Treatment:  MEDICAL THERAPY, INJECTIONS 
118.1   ICD-9:  713.5, 715, 716.0-716.1, 716.5-716.6 
118.2      (9) Diagnosis:  METABOLIC BONE DISEASE 
118.3   Treatment:  MEDICAL THERAPY 
118.4   ICD-9:  731.0, 733.0 
118.5      (10) Diagnosis:  SYMPTOMATIC IMPACTED TEETH 
118.6   Treatment:  SURGERY 
118.7   ICD-9:  520.6, 524.3-524.4 
118.8      (11) Diagnosis:  UNSPECIFIED DISEASE OF HARD TISSUES OF 
118.9   TEETH (AVULSION) 
118.10  Treatment:  INTERDENTAL WIRING 
118.11  ICD-9:  525.9 
118.12     (12) Diagnosis:  ABSCESSES AND CYSTS OF BARTHOLIN'S GLAND 
118.13  AND VULVA 
118.14  Treatment:  INCISION AND DRAINAGE, MEDICAL THERAPY 
118.15  ICD-9:  616.2-616.9 
118.16     (13) Diagnosis:  CERVICITIS, ENDOCERVICITIS, HEMATOMA OF 
118.17  VULVA, AND NONINFLAMMATORY DISORDERS OF THE VAGINA 
118.18  Treatment:  MEDICAL AND SURGICAL TREATMENT 
118.19  ICD-9:  616.0, 623.6, 623.8-623.9, 624.5 
118.20     (14) Diagnosis:  DENTAL CONDITIONS (e.g,. TOOTH LOSS) 
118.21  Treatment:  SPACE MAINTENANCE AND PERIODONTAL MAINTENANCE 
118.22  ICD-9:  V72.2 
118.23     (15) Diagnosis:  URINARY INCONTINENCE 
118.24  Treatment:  MEDICAL AND SURGICAL TREATMENT 
118.25  ICD-9:  599.81, 625.6, 788.31-788.33 
118.26     (16) Diagnosis:  HYPOSPADIAS AND EPISPADIAS 
118.27  Treatment:  REPAIR 
118.28  ICD-9:  752.6 
118.29     (17) Diagnosis:  RESIDUAL FOREIGN BODY IN SOFT TISSUE 
118.30  Treatment:  REMOVAL 
118.31  ICD-9:  374.86, 729.6, 883.1-883.2 
118.32     (18) Diagnosis:  BRANCHIAL CLEFT CYST 
118.33  Treatment:  EXCISION, MEDICAL THERAPY 
118.34  ICD-9:  744.41-744.46, 744.49, 759.2 
118.35     (19) Diagnosis:  EXFOLIATION OF TEETH DUE TO SYSTEMIC 
118.36  CAUSES; SPECIFIC DISORDERS OF THE TEETH AND SUPPORTING 
119.1   STRUCTURES 
119.2   Treatment:  EXCISION OF DENTOALVEOLAR STRUCTURE 
119.3   ICD-9:  525.0, 525.8, 525.11 
119.4      (20) Diagnosis:  PTOSIS (ACQUIRED) WITH VISION IMPAIRMENT 
119.5   Treatment:  PTOSIS REPAIR 
119.6   ICD-9:  374.2-374.3, 374.41, 374.43, 374.46 
119.7      (21) Diagnosis:  SIMPLE AND SOCIAL PHOBIAS 
119.8   Treatment:  MEDICAL/PSYCHOTHERAPY 
119.9   ICD-9:  300.23, 300.29 
119.10     (22) Diagnosis:  RETAINED DENTAL ROOT 
119.11  Treatment:  EXCISION OF DENTOALVEOLAR STRUCTURE 
119.12  ICD-9:  525.3 
119.13     (23) Diagnosis:  PERIPHERAL NERVE ENTRAPMENT 
119.14  Treatment:  MEDICAL AND SURGICAL TREATMENT 
119.15  ICD-9:  354.0, 354.2, 355.5, 723.3, 728.6 
119.16     (24) Diagnosis:  INCONTINENCE OF FECES 
119.17  Treatment:  MEDICAL AND SURGICAL TREATMENT 
119.18  ICD-9:  787.6 
119.19     (25) Diagnosis:  RECTAL PROLAPSE 
119.20  Treatment:  PARTIAL COLECTOMY 
119.21  ICD-9:  569.1-569.2 
119.22     (26) Diagnosis:  BENIGN NEOPLASM OF KIDNEY AND OTHER 
119.23  URINARY ORGANS 
119.24  Treatment:  MEDICAL AND SURGICAL TREATMENT 
119.25  ICD-9:  223 
119.26     (27) Diagnosis:  URETHRAL FISTULA 
119.27  Treatment:  EXCISION, MEDICAL THERAPY 
119.28  ICD-9:  599.1-599.2, 599.4 
119.29     (28) Diagnosis:  THROMBOSED AND COMPLICATED HEMORRHOIDS 
119.30  Treatment:  HEMORRHOIDECTOMY, INCISION 
119.31  ICD-9:  455.1-455.2, 455.4-455.5, 455.7-455.8 
119.32     (29) Diagnosis:  VAGINITIS, TRICHOMONIASIS 
119.33  Treatment:  MEDICAL THERAPY 
119.34  ICD-9:  112.1, 131, 616.1, 623.5 
119.35     (30) Diagnosis:  BALANOPOSTHITIS AND OTHER DISORDERS OF 
119.36  PENIS 
120.1   Treatment:  MEDICAL AND SURGICAL TREATMENT 
120.2   ICD-9:  607.1, 607.81-607.83, 607.89 
120.3      (31) Diagnosis:  CHRONIC ANAL FISSURE; ANAL FISTULA 
120.4   Treatment:  SPHINCTEROTOMY, FISSURECTOMY, FISTULECTOMY, MEDICAL 
120.5   THERAPY 
120.6   ICD-9:  565.0-565.1 
120.7      (32) Diagnosis:  CHRONIC OTITIS MEDIA 
120.8   Treatment:  PE TUBES/ADENOIDECTOMY/TYMPANOPLASTY, MEDICAL 
120.9   THERAPY 
120.10  ICD-9:  380.5, 381.1-381.8, 382.1-382.3, 382.9, 383.1-383.2, 
120.11  383.30-383.31, 383.9, 384.2, 384.8-384.9 
120.12     (33) Diagnosis:  ACUTE CONJUNCTIVITIS 
120.13  Treatment:  MEDICAL THERAPY 
120.14  ICD-9:  077, 372.00 
120.15     (34) Diagnosis:  CERUMEN IMPACTION, FOREIGN BODY IN EAR & 
120.16  NOSE 
120.17  Treatment:  REMOVAL OF FOREIGN BODY 
120.18  ICD-9:  380.4, 931-932 
120.19     (35) Diagnosis:  VERTIGINOUS SYNDROMES AND OTHER DISORDERS 
120.20  OF VESTIBULAR SYSTEM 
120.21  Treatment:  MEDICAL AND SURGICAL TREATMENT 
120.22  ICD-9:  379.54, 386.1-386.2, 386.4-386.9, 438.6-438.7, 
120.23  438.83-438.85 
120.24     (36) Diagnosis:  UNSPECIFIED URINARY OBSTRUCTION AND BENIGN 
120.25  PROSTATIC HYPERPLASIA WITHOUT OBSTRUCTION 
120.26  Treatment:  MEDICAL THERAPY 
120.27  ICD-9:  599.6, 600 
120.28     (37) Diagnosis:  PHIMOSIS 
120.29  Treatment:  SURGICAL TREATMENT 
120.30  ICD-9:  605 
120.31     (38) Diagnosis:  CONTACT DERMATITIS, ATOPIC DERMATITIS AND 
120.32  OTHER ECZEMA 
120.33  Treatment:  MEDICAL THERAPY 
120.34  ICD-9:  691.8, 692.0-692.6, 692.70-692.74, 692.79, 692.8-692.9 
120.35     (39) Diagnosis:  PSORIASIS AND SIMILAR DISORDERS 
120.36  Treatment:  MEDICAL THERAPY 
121.1   ICD-9:  696.1-696.2, 696.8 
121.2      (40) Diagnosis:  CYSTIC ACNE 
121.3   Treatment:  MEDICAL AND SURGICAL TREATMENT 
121.4   ICD-9:  705.83, 706.0-706.1 
121.5      (41) Diagnosis:  CLOSED FRACTURE OF GREAT TOE 
121.6   Treatment:  MEDICAL AND SURGICAL TREATMENT 
121.7   ICD-9:  826.0 
121.8      (42) Diagnosis:  SYMPTOMATIC URTICARIA 
121.9   Treatment:  MEDICAL THERAPY 
121.10  ICD-9:  708.0-708.1, 708.5, 708.8, 995.7 
121.11     (43) Diagnosis:  PERIPHERAL NERVE DISORDERS 
121.12  Treatment:  SURGICAL TREATMENT 
121.13  ICD-9:  337.2, 353, 354.1, 354.3-354.9, 355.0, 355.3, 355.4, 
121.14  355.7-355.8, 723.2 
121.15     (44) Diagnosis:  DYSFUNCTION OF NASOLACRIMAL SYSTEM; 
121.16  LACRIMAL SYSTEM LACERATION 
121.17  Treatment:  MEDICAL AND SURGICAL TREATMENT; CLOSURE 
121.18  ICD-9:  370.33, 375, 870.2 
121.19     (45) Diagnosis:  NASAL POLYPS, OTHER DISORDERS OF NASAL 
121.20  CAVITY AND SINUSES 
121.21  Treatment:  MEDICAL AND SURGICAL TREATMENT 
121.22  ICD-9:  471, 478.1, 993.1 
121.23     (46) Diagnosis:  SIALOLITHIASIS, MUCOCELE, DISTURBANCE OF 
121.24  SALIVARY SECRETION, OTHER AND UNSPECIFIED DISEASES OF SALIVARY 
121.25  GLANDS 
121.26  Treatment:  MEDICAL AND SURGICAL TREATMENT 
121.27  ICD-9:  527.5-527.9 
121.28     (47) Diagnosis:  DENTAL CONDITIONS (e.g., BROKEN APPLIANCES)
121.29  Treatment:  PERIODONTICS AND COMPLEX PROSTHETICS 
121.30  ICD-9:  522.6, 522.8, V72.2 
121.31     (48) Diagnosis:  IMPULSE DISORDERS 
121.32  Treatment:  MEDICAL/PSYCHOTHERAPY 
121.33  ICD-9:  312.31-312.39 
121.34     (49) Diagnosis:  BENIGN NEOPLASM BONE AND ARTICULAR 
121.35  CARTILAGE, INCLUDING OSTEOID OSTEOMAS; BENIGN NEOPLASM OF 
121.36  CONNECTIVE AND OTHER SOFT TISSUE 
122.1   Treatment:  MEDICAL AND SURGICAL TREATMENT 
122.2   ICD-9:  213, 215, 526.0-526.1, 526.81, 719.2, 733.2 
122.3      (50) Diagnosis: SEXUAL DYSFUNCTION 
122.4   Treatment:  MEDICAL AND SURGICAL TREATMENT, PSYCHOTHERAPY 
122.5   ICD-9: 302.7, 607.84 
122.6      (51) Diagnosis:  STOMATITIS AND DISEASES OF LIPS 
122.7   Treatment:  INCISION AND DRAINAGE/MEDICAL THERAPY 
122.8   ICD-9:  528.0, 528.5, 528.9, 529.0 
122.9      (52) Diagnosis:  BELL'S PALSY, EXPOSURE 
122.10  KERATOCONJUNCTIVITIS 
122.11  Treatment:  TARSORRHAPHY 
122.12  ICD-9:  351.0-351.1, 351.8-351.9, 370.34, 374.44, 374.45, 374.89 
122.13     (53) Diagnosis:  HORDEOLUM AND OTHER DEEP INFLAMMATION OF 
122.14  EYELID; CHALAZION 
122.15  Treatment:  INCISION AND DRAINAGE/MEDICAL THERAPY 
122.16  ICD-9:  373.11-373.12, 373.2, 374.50, 374.54, 374.56, 374.84 
122.17     (54) Diagnosis:  ECTROPION, TRICHIASIS OF EYELID, BENIGN 
122.18  NEOPLASM OF EYELID 
122.19  Treatment:  ECTROPION REPAIR 
122.20  ICD-9:  216.1, 224, 372.63, 374.1, 374.85 
122.21     (55) Diagnosis:  CHONDROMALACIA 
122.22  Treatment:  MEDICAL THERAPY 
122.23  ICD-9:  733.92 
122.24     (56) Diagnosis:  DYSMENORRHEA 
122.25  Treatment:  MEDICAL AND SURGICAL TREATMENT 
122.26  ICD-9:  625.3 
122.27     (57) Diagnosis:  SPASTIC DIPLEGIA 
122.28  Treatment:  RHIZOTOMY 
122.29  ICD-9:  343.0 
122.30     (58) Diagnosis:  ATROPHY OF EDENTULOUS ALVEOLAR RIDGE 
122.31  Treatment:  VESTIBULOPLASTY, GRAFTS, IMPLANTS 
122.32  ICD-9:  525.2 
122.33     (59) Diagnosis:  DEFORMITIES OF UPPER BODY AND ALL LIMBS 
122.34  Treatment:  REPAIR/REVISION/RECONSTRUCTION/RELOCATION/MEDICAL 
122.35  THERAPY 
122.36  ICD-9:  718.02-718.05, 718.13-718.15, 718.42-718.46, 
123.1   718.52-718.56, 718.65, 718.82-718.86, 728.79, 732.3, 732.6, 
123.2   732.8-732.9, 733.90-733.91, 736.00-736.04, 736.07, 736.09, 
123.3   736.1, 736.20, 736.29, 736.30, 736.39, 736.4, 736.6, 736.76, 
123.4   736.79, 736.89, 736.9, 738.6, 738.8, 754.42-754.44, 754.61, 
123.5   754.8, 755.50-755.53, 755.56-755.57, 755.59, 755.60, 
123.6   755.63-755.64, 755.69, 755.8, 756.82-756.83, 756.89 
123.7      (60) Diagnosis:  DEFORMITIES OF FOOT 
123.8   Treatment:  FASCIOTOMY/INCISION/REPAIR/ARTHRODESIS 
123.9   ICD-9:  718.07, 718.47, 718.57, 718.87, 727.1, 732.5, 
123.10  735.0-735.2, 735.3-735.9, 736.70-736.72, 754.50, 754.59, 754.60, 
123.11  754.69, 754.70, 754.79, 755.65-755.67 
123.12     (61) Diagnosis:  PERITONEAL ADHESION 
123.13  Treatment:  SURGICAL TREATMENT 
123.14  ICD-9:  568.0, 568.82-568.89, 568.9 
123.15     (62) Diagnosis:  PELVIC PAIN SYNDROME, DYSPAREUNIA 
123.16  Treatment:  MEDICAL AND SURGICAL TREATMENT 
123.17  ICD-9:  300.81, 614.1, 614.6, 620.6, 625.0-625.2, 625.5, 
123.18  625.8-625.9 
123.19     (63) Diagnosis:  TENSION HEADACHES 
123.20  Treatment:  MEDICAL THERAPY 
123.21  ICD-9:  307.81, 784.0 
123.22     (64) Diagnosis:  CHRONIC BRONCHITIS 
123.23  Treatment:  MEDICAL THERAPY 
123.24  ICD-9:  490, 491.0, 491.8-491.9 
123.25     (65) Diagnosis:  DISORDERS OF FUNCTION OF STOMACH AND OTHER 
123.26  FUNCTIONAL DIGESTIVE DISORDERS 
123.27  Treatment:  MEDICAL THERAPY 
123.28  ICD-9:  536.0-536.3, 536.8-536.9, 537.1-537.2, 537.5-537.6, 
123.29  537.89, 537.9, 564.0-564.7, 564.9 
123.30     (66) Diagnosis:  TMJ DISORDER 
123.31  Treatment:  TMJ SPLINTS 
123.32  ICD-9:  524.6, 848.1 
123.33     (67) Diagnosis:  URETHRITIS, NONSEXUALLY TRANSMITTED 
123.34  Treatment:  MEDICAL THERAPY 
123.35  ICD-9:  597.8, 599.3-599.5, 599.9 
123.36     (68) Diagnosis:  LESION OF PLANTAR NERVE; PLANTAR FASCIAL 
124.1   FIBROMATOSIS 
124.2   Treatment:  MEDICAL THERAPY, EXCISION 
124.3   ICD-9:  355.6, 728.71 
124.4      (69) Diagnosis:  GRANULOMA OF MUSCLE, GRANULOMA OF SKIN AND 
124.5   SUBCUTANEOUS TISSUE 
124.6   Treatment:  REMOVAL OF GRANULOMA 
124.7   ICD-9:  709.4, 728.82 
124.8      (70) Diagnosis:  DERMATOPHYTOSIS OF NAIL, GROIN, AND FOOT 
124.9   AND OTHER DERMATOMYCOSIS 
124.10  Treatment:  MEDICAL AND SURGICAL TREATMENT 
124.11  ICD-9:  110.0-110.6, 110.8-110.9, 111 
124.12     (71) Diagnosis:  INTERNAL DERANGEMENT OF JOINT OTHER THAN 
124.13  KNEE 
124.14  Treatment:  REPAIR, MEDICAL THERAPY 
124.15  ICD-9:  718.09, 718.19, 718.29, 718.48, 718.59, 718.88-718.89, 
124.16  719.81-719.85, 719.87-719.89 
124.17     (72) Diagnosis:  STENOSIS OF NASOLACRIMAL DUCT (ACQUIRED) 
124.18  Treatment:  DACRYOCYSTORHINOSTOMY 
124.19  ICD-9:  375.02, 375.30, 375.32, 375.4, 375.56-375.57, 375.61, 
124.20  771.6 
124.21     (73) Diagnosis:  PERIPHERAL NERVE DISORDERS 
124.22  Treatment:  SURGICAL TREATMENT 
124.23  ICD-9:  337.2, 353, 354.1, 354.3-354.9, 355.0, 355.3, 355.4, 
124.24  355.7-355.8, 723.2 
124.25     (74) Diagnosis:  CAVUS DEFORMITY OF FOOT; FLAT FOOT; 
124.26  POLYDACTYLY AND SYNDACTYLY OF TOES 
124.27  Treatment:  MEDICAL THERAPY, ORTHOTIC 
124.28  ICD-9:  734, 736.73, 755.00, 755.02, 755.10, 755.13-755.14 
124.29     (75) Diagnosis:  PERIPHERAL ENTHESOPATHIES 
124.30  Treatment:  SURGICAL TREATMENT 
124.31  ICD-9:  726.12, 726.3-726.9, 728.81 
124.32     (76) Diagnosis:  PERIPHERAL ENTHESOPATHIES 
124.33  Treatment:  MEDICAL THERAPY 
124.34  ICD-9:  726.12, 726.3-726.4, 726.6-726.9, 728.81 
124.35     (77) Diagnosis:  DISORDERS OF SOFT TISSUE 
124.36  Treatment:  MEDICAL THERAPY 
125.1   ICD-9:  729.0-729.2, 729.31-729.39, 729.4-729.9 
125.2      (78) Diagnosis:  ENOPHTHALMOS 
125.3   Treatment:  ORBITAL IMPLANT 
125.4   ICD-9:  372.64, 376.5 
125.5      (79) Diagnosis:  MACROMASTIA 
125.6   Treatment:  SUBCUTANEOUS TOTAL MASTECTOMY, BREAST REDUCTION 
125.7   ICD-9:  611.1 
125.8      (80) Diagnosis:  GALACTORRHEA, MASTODYNIA, ATROPHY, BENIGN 
125.9   NEOPLASMS AND UNSPECIFIED DISORDERS OF THE BREAST 
125.10  Treatment:  MEDICAL AND SURGICAL TREATMENT 
125.11  ICD-9: 217, 611.3, 611.4, 611.6, 611.71, 611.9, 757.6 
125.12     (81) Diagnosis:  ACUTE AND CHRONIC DISORDERS OF SPINE 
125.13  WITHOUT NEUROLOGIC IMPAIRMENT 
125.14  Treatment:  MEDICAL AND SURGICAL TREATMENT 
125.15  ICD-9:  721.0, 721.2-721.3, 721.7-721.8, 721.90, 722.0-722.6, 
125.16  722.8-722.9, 723.1, 723.5-723.9, 724.1-724.2, 724.5-724.9, 739, 
125.17  839.2, 847 
125.18     (82) Diagnosis:  CYSTS OF ORAL SOFT TISSUES 
125.19  Treatment:  INCISION AND DRAINAGE 
125.20  ICD-9:  527.1, 528.4, 528.8 
125.21     (83) Diagnosis:  FEMALE INFERTILITY, MALE INFERTILITY 
125.22  Treatment:  ARTIFICIAL INSEMINATION, MEDICAL THERAPY 
125.23  ICD-9:  606, 628.4-628.9, 629.9, V26.1-V26.2, V26.8-V26.9 
125.24     (84) Diagnosis:  INFERTILITY DUE TO ANNOVULATION 
125.25  Treatment:  MEDICAL THERAPY 
125.26  ICD-9:  626.0-626.1, 628.0, 628.1 
125.27     (85) Diagnosis:  POSTCONCUSSION SYNDROME 
125.28  Treatment:  MEDICAL THERAPY 
125.29  ICD-9:  310.2 
125.30     (86) Diagnosis:  SIMPLE AND UNSPECIFIED GOITER, NONTOXIC 
125.31  NODULAR GOITER 
125.32  Treatment:  MEDICAL THERAPY, THYROIDECTOMY 
125.33  ICD-9:  240-241 
125.34     (87) Diagnosis:  CONDUCTIVE HEARING LOSS 
125.35  Treatment:  AUDIANT BONE CONDUCTORS 
125.36  ICD-9:  389.0, 389.2 
126.1      (88) Diagnosis:  CANCER OF LIVER AND INTRAHEPATIC BILE 
126.2   DUCTS 
126.3   Treatment:  LIVER TRANSPLANT 
126.4   ICD-9:  155.0-155.1, 996.82 
126.5      (89) Diagnosis:  HYPOTENSION 
126.6   Treatment:  MEDICAL THERAPY 
126.7   ICD-9:  458 
126.8      (90) Diagnosis:  VIRAL HEPATITIS, EXCLUDING CHRONIC VIRAL 
126.9   HEPATITIS B AND VIRAL HEPATITIS C WITHOUT HEPATIC COMA 
126.10  Treatment:  MEDICAL THERAPY 
126.11  ICD-9:  070.0-070.2, 070.30-070.31, 070.33, 070.4, 
126.12  070.52-070.53, 070.59, 070.6-070.9 
126.13     (91) Diagnosis:  BENIGN NEOPLASMS OF SKIN AND OTHER SOFT 
126.14  TISSUES 
126.15  Treatment:  MEDICAL THERAPY 
126.16  ICD-9:  210, 214, 216, 221, 222.1, 222.4, 228.00-228.01, 228.1, 
126.17  229, 686.1, 686.9 
126.18     (92) Diagnosis:  REDUNDANT PREPUCE 
126.19  Treatment:  ELECTIVE CIRCUMCISION 
126.20  ICD-9:  605, V50.2 
126.21     (93) Diagnosis:  BENIGN NEOPLASMS OF DIGESTIVE SYSTEM 
126.22  Treatment:  SURGICAL TREATMENT 
126.23  ICD-9:  211.0-211.2, 211.5-211.6, 211.8-211.9 
126.24     (94) Diagnosis:  OTHER NONINFECTIOUS GASTROENTERITIS AND 
126.25  COLITIS 
126.26  Treatment:  MEDICAL THERAPY 
126.27  ICD-9:  558 
126.28     (95) Diagnosis:  FACTITIOUS DISORDERS 
126.29  Treatment:  CONSULTATION 
126.30  ICD-9:  300.10, 300.16, 300.19, 301.51 
126.31     (96) Diagnosis:  HYPOCHONDRIASIS; SOMATOFORM DISORDER, NOS 
126.32  AND UNDIFFERENTIATED 
126.33  Treatment:  CONSULTATION 
126.34  ICD-9:  300.7, 300.9, 306 
126.35     (97) Diagnosis:  CONVERSION DISORDER, ADULT 
126.36  Treatment:  MEDICAL/PSYCHOTHERAPY 
127.1   ICD-9:  300.11 
127.2      (98) Diagnosis:  SPINAL DEFORMITY, NOT CLINICALLY 
127.3   SIGNIFICANT 
127.4   Treatment:  ARTHRODESIS/REPAIR/RECONSTRUCTION, MEDICAL THERAPY 
127.5   ICD-9:  721.5-721.6, 723.0, 724.0, 731.0, 737.0-737.3, 
127.6   737.8-737.9, 738.4-738.5, 754.1-754.2, 756.10-756.12, 
127.7   756.13-756.17, 756.19, 756.3 
127.8      (99) Diagnosis:  ASYMPTOMATIC URTICARIA 
127.9   Treatment:  MEDICAL THERAPY 
127.10  ICD-9:  708.2-708.4, 708.9 
127.11     (100) Diagnosis:  CIRCUMSCRIBED SCLERODERMA; SENILE PURPURA 
127.12  Treatment:  MEDICAL THERAPY 
127.13  ICD-9:  287.2, 287.8-287.9, 701.0 
127.14     (101) Diagnosis:  DERMATITIS DUE TO SUBSTANCES TAKEN 
127.15  INTERNALLY 
127.16  Treatment:  MEDICAL THERAPY 
127.17  ICD-9:  693 
127.18     (102) Diagnosis:  ALLERGIC RHINITIS AND CONJUNCTIVITIS, 
127.19  CHRONIC RHINITIS 
127.20  Treatment:  MEDICAL THERAPY 
127.21  ICD-9:  372.01-372.05, 372.14, 372.54, 372.56, 472, 477, 955.3, 
127.22  V07.1 
127.23     (103) Diagnosis:  PLEURISY 
127.24  Treatment:  MEDICAL THERAPY 
127.25  ICD-9:  511.0, 511.9 
127.26     (104) Diagnosis:  CONJUNCTIVAL CYST 
127.27  Treatment:  EXCISION OF CONJUNCTIVAL CYST 
127.28  ICD-9:  372.61-372.62, 372.71-372.72, 372.74-372.75 
127.29     (105) Diagnosis:  HEMATOMA OF AURICLE OR PINNA AND HEMATOMA 
127.30  OF EXTERNAL EAR 
127.31  Treatment:  DRAINAGE 
127.32  ICD-9:  380.3, 380.8, 738.7 
127.33     (106) Diagnosis:  ACUTE NONSUPPURATIVE LABYRINTHITIS 
127.34  Treatment:  MEDICAL THERAPY 
127.35  ICD-9:  386.30-386.32, 386.34-386.35 
127.36     (107) Diagnosis:  INFECTIOUS MONONUCLEOSIS 
128.1   Treatment: MEDICAL THERAPY 
128.2   ICD-9:  075 
128.3      (108) Diagnosis:  ASEPTIC MENINGITIS 
128.4   Treatment:  MEDICAL THERAPY 
128.5   ICD-9:  047-049 
128.6      (109) Diagnosis:  CONGENITAL ANOMALIES OF FEMALE GENITAL 
128.7   ORGANS, EXCLUDING VAGINA 
128.8   Treatment:  SURGICAL TREATMENT 
128.9   ICD-9:  752.0-752.3, 752.41 
128.10     (110) Diagnosis:  CONGENITAL DEFORMITIES OF KNEE 
128.11  Treatment:  ARTHROSCOPIC REPAIR 
128.12  ICD-9:  755.64, 727.83 
128.13     (111) Diagnosis:  UNCOMPLICATED HERNIA IN ADULTS AGE 18 OR 
128.14  OVER 
128.15  Treatment:  REPAIR 
128.16  ICD-9:  550.9, 553.0-553.2, 553.8-553.9 
128.17     (112) Diagnosis:  ACUTE ANAL FISSURE 
128.18  Treatment:  FISSURECTOMY, MEDICAL THERAPY 
128.19  ICD-9:  565.0 
128.20     (113) Diagnosis:  CYST OF KIDNEY, ACQUIRED 
128.21  Treatment:  MEDICAL AND SURGICAL TREATMENT 
128.22  ICD-9:  593.2 
128.23     (114) Diagnosis:  PICA 
128.24  Treatment:  MEDICAL/PSYCHOTHERAPY 
128.25  ICD-9:  307.52 
128.26     (115) Diagnosis:  DISORDERS OF SLEEP WITHOUT SLEEP APNEA 
128.27  Treatment:  MEDICAL THERAPY 
128.28  ICD-9:  307.41-307.45, 307.47-307.49, 780.50, 780.52, 
128.29  780.54-780.56, 780.59 
128.30     (116) Diagnosis:  CYST, HEMORRHAGE, AND INFARCTION OF 
128.31  THYROID 
128.32  Treatment:  SURGERY - EXCISION 
128.33  ICD-9:  246.2, 246.3, 246.9 
128.34     (117) Diagnosis:  DEVIATED NASAL SEPTUM, ACQUIRED DEFORMITY 
128.35  OF NOSE, OTHER DISEASES OF UPPER RESPIRATORY TRACT 
128.36  Treatment:  EXCISION OF CYST/RHINECTOMY/PROSTHESIS 
129.1   ICD-9:  470, 478.0, 738.0, 754.0 
129.2      (118) Diagnosis:  ERYTHEMA MULTIFORM 
129.3   Treatment:  MEDICAL THERAPY 
129.4   ICD-9:  695.1 
129.5      (119) Diagnosis:  HERPES SIMPLEX WITHOUT COMPLICATIONS 
129.6   Treatment:  MEDICAL THERAPY 
129.7   ICD-9:  054.2, 054.6, 054.73, 054.9 
129.8      (120) Diagnosis:  CONGENITAL ANOMALIES OF THE EAR WITHOUT 
129.9   IMPAIRMENT OF HEARING; UNILATERAL ANOMALIES OF THE EAR 
129.10  Treatment:  OTOPLASTY, REPAIR AND AMPUTATION 
129.11  ICD-9:  744.00-744.04, 744.09, 744.1-744.3 
129.12     (121) Diagnosis:  BLEPHARITIS 
129.13  Treatment:  MEDICAL THERAPY 
129.14  ICD-9:  373.0, 373.8-373.9, 374.87 
129.15     (122) Diagnosis:  HYPERTELORISM OF ORBIT 
129.16  Treatment:  ORBITOTOMY 
129.17  ICD-9:  376.41 
129.18     (123) Diagnosis:  INFERTILITY DUE TO TUBAL DISEASE 
129.19  Treatment:  MICROSURGERY 
129.20  ICD-9:  608.85, 622.5, 628.2-628.3, 629.9, V26.0 
129.21     (124) Diagnosis:  KERATODERMA, ACANTHOSIS NIGRICANS, STRIAE 
129.22  ATROPHICAE, AND OTHER HYPERTROPHIC OR ATROPHIC CONDITIONS OF 
129.23  SKIN 
129.24  Treatment:  MEDICAL THERAPY 
129.25  ICD-9:  373.3, 690, 698, 701.1-701.3, 701.8, 701.9 
129.26     (125) Diagnosis:  LICHEN PLANUS 
129.27  Treatment:  MEDICAL THERAPY 
129.28  ICD-9:  697 
129.29     (126) Diagnosis: OBESITY 
129.30  Treatment:  NUTRITIONAL AND LIFE STYLE COUNSELING 
129.31  ICD-9:  278.0 
129.32     (127) Diagnosis:  MORBID OBESITY 
129.33  Treatment:  GASTROPLASTY 
129.34  ICD-9:  278.01 
129.35     (128) Diagnosis:  CHRONIC DISEASE OF TONSILS AND ADENOIDS 
129.36  Treatment:  TONSILLECTOMY AND ADENOIDECTOMY 
130.1   ICD-9:  474.0, 474.1-474.2, 474.9 
130.2      (129) Diagnosis:  HYDROCELE 
130.3   Treatment:  MEDICAL THERAPY, EXCISION 
130.4   ICD-9:  603, 608.84, 629.1, 778.6 
130.5      (130) Diagnosis:  KELOID SCAR; OTHER ABNORMAL GRANULATION 
130.6   TISSUE 
130.7   Treatment:  INTRALESIONAL INJECTIONS/DESTRUCTION/EXCISION, 
130.8   RADIATION THERAPY 
130.9   ICD-9:  701.4-701.5 
130.10     (131) Diagnosis:  NONINFLAMMATORY DISORDERS OF CERVIX; 
130.11  HYPERTROPHY OF LABIA 
130.12  Treatment:  MEDICAL THERAPY 
130.13  ICD-9:  622.4, 622.6-622.9, 623.4, 624.2-624.3, 624.6-624.9 
130.14     (132) Diagnosis:  SPRAINS OF JOINTS AND ADJACENT MUSCLES, 
130.15  GRADE I 
130.16  Treatment:  MEDICAL THERAPY 
130.17  ICD-9:  355.1-355.3, 355.9, 717, 718.26, 718.36, 718.46, 718.56, 
130.18  836.0-836.2, 840-843, 844.0-844.3, 844.8-844.9, 845.00-845.03, 
130.19  845.1, 846, 848.3, 848.40-848.42, 848.49, 848.5, 848.8-848.9, 
130.20  905.7 
130.21     (133) Diagnosis:  SYNOVITIS AND TENOSYNOVITIS 
130.22  Treatment:  MEDICAL THERAPY 
130.23  ICD-9:  726.12, 727.00, 727.03-727.09 
130.24     (134) Diagnosis:  OTHER DISORDERS OF SYNOVIUM, TENDON AND 
130.25  BURSA, COSTOCHONDRITIS, AND CHONDRODYSTROPHY 
130.26  Treatment: MEDICAL THERAPY 
130.27  ICD-9:  719.5-719.6, 719.80, 719.86, 727.2-727.3, 727.50, 
130.28  727.60, 727.82, 727.9, 733.5-733.7, 756.4 
130.29     (135) Diagnosis:  DISEASE OF NAILS, HAIR, AND HAIR 
130.30  FOLLICLES 
130.31  Treatment:  MEDICAL THERAPY 
130.32  ICD-9:  703.8-703.9, 704.0, 704.1-704.9, 706.3, 706.9, 
130.33  757.4-757.5, V50.0 
130.34     (136) Diagnosis:  CANDIDIASIS OF MOUTH, SKIN, AND NAILS 
130.35  Treatment:  MEDICAL THERAPY 
130.36  ICD-9:  112.0, 112.3, 112.9 
131.1      (137) Diagnosis:  BENIGN LESIONS OF TONGUE 
131.2   Treatment:  EXCISION 
131.3   ICD-9:  529.1-529.6, 529.8-529.9 
131.4      (138) Diagnosis:  MINOR BURNS 
131.5   Treatment:  MEDICAL THERAPY 
131.6   ICD-9:  692.76, 941.0-941.2, 942.0-942.2, 943.0-943.2, 
131.7   944.0-944.2, 945.0-945.2, 946.0-946.2, 949.0-949.1 
131.8      (139) Diagnosis:  MINOR HEAD INJURY:  HEMATOMA/EDEMA WITH 
131.9   NO LOSS OF CONSCIOUSNESS 
131.10  Treatment:  MEDICAL THERAPY 
131.11  ICD-9:  800.00-800.01, 801.00-801.01, 803.00-803.01, 850.0, 
131.12  850.9, 851.00-851.01, 851.09, 851.20-851.21, 851.29, 
131.13  851.40-851.41, 851.49, 851.60-851.61, 851.69, 851.80-851.81, 
131.14  851.89 
131.15     (140) Diagnosis:  CONGENITAL DEFORMITY OF KNEE 
131.16  Treatment:  MEDICAL THERAPY 
131.17  ICD-9:  755.64 
131.18     (141) Diagnosis:  PHLEBITIS AND THROMBOPHLEBITIS, 
131.19  SUPERFICIAL 
131.20  Treatment:  MEDICAL THERAPY 
131.21  ICD-9:  451.0, 451.2, 451.82, 451.84, 451.89, 451.9 
131.22     (142) Diagnosis:  PROLAPSED URETHRAL MUCOSA 
131.23  Treatment:  SURGICAL TREATMENT 
131.24  ICD-9:  599.3, 599.5 
131.25     (143) Diagnosis:  RUPTURE OF SYNOVIUM 
131.26  Treatment:  REMOVAL OF BAKER'S CYST 
131.27  ICD-9:  727.51 
131.28     (144) Diagnosis:  PERSONALITY DISORDERS, EXCLUDING 
131.29  BORDERLINE, SCHIZOTYPAL AND ANTISOCIAL 
131.30  Treatment:  MEDICAL/PSYCHOTHERAPY 
131.31  ICD-9:  301.0, 301.10-301.12, 301.20-301.21, 301.3-301.4, 
131.32  301.50, 301.59, 301.6, 301.81-301.82, 301.84, 301.89, 301.9 
131.33     (145) Diagnosis:  GENDER IDENTIFICATION DISORDER, 
131.34  PARAPHILIAS AND OTHER PSYCHOSEXUAL DISORDERS 
131.35  Treatment:  MEDICAL/PSYCHOTHERAPY 
131.36  ICD-9:  302.0-302.4, 302.50, 302.6, 302.85, 302.9 
132.1      (146) Diagnosis:  FINGERTIP AVULSION 
132.2   Treatment:  REPAIR WITHOUT PEDICLE GRAFT 
132.3   ICD-9:  883.0 
132.4      (147) Diagnosis:  ANOMALIES OF RELATIONSHIP OF JAW TO 
132.5   CRANIAL BASE, MAJOR ANOMALIES OF JAW SIZE, OTHER SPECIFIED AND 
132.6   UNSPECIFIED DENTOFACIAL ANOMALIES 
132.7   Treatment:  OSTEOPLASTY, MAXILLA/MANDIBLE 
132.8   ICD-9:  524.0-524.2, 524.5, 524.7-524.8, 524.9 
132.9      (148) Diagnosis:  CERVICAL RIB 
132.10  Treatment:  SURGICAL TREATMENT 
132.11  ICD-9:  756.2 
132.12     (149) Diagnosis:  GYNECOMASTIA 
132.13  Treatment:  MASTECTOMY 
132.14  ICD-9:  611.1 
132.15     (150) Diagnosis:  VIRAL, SELF-LIMITING ENCEPHALITIS, 
132.16  MYELITIS AND ENCEPHALOMYELITIS 
132.17  Treatment:  MEDICAL THERAPY 
132.18  ICD-9:  056.0, 056.71, 323.8-323.9 
132.19     (151) Diagnosis:  GALLSTONES WITHOUT CHOLECYSTITIS 
132.20  Treatment:  MEDICAL THERAPY, CHOLECYSTECTOMY 
132.21  ICD-9: 574.2, 575.8 
132.22     (152) Diagnosis:  BENIGN NEOPLASM OF NASAL CAVITIES, MIDDLE 
132.23  EAR AND ACCESSORY SINUSES 
132.24  Treatment:  EXCISION, RECONSTRUCTION 
132.25  ICD-9:  212.0 
132.26     (153) Diagnosis:  ACUTE TONSILLITIS OTHER THAN 
132.27  BETA-STREPTOCOCCAL 
132.28  Treatment:  MEDICAL THERAPY 
132.29  ICD-9:  463 
132.30     (154) Diagnosis:  EDEMA AND OTHER CONDITIONS INVOLVING THE 
132.31  INTEGUMENT OF THE FETUS AND NEWBORN 
132.32  Treatment:  MEDICAL THERAPY 
132.33  ICD-9:  778.5, 778.7-778.9 
132.34     (155) Diagnosis:  ACUTE UPPER RESPIRATORY INFECTIONS AND 
132.35  COMMON COLD 
132.36  Treatment:  MEDICAL THERAPY 
133.1   ICD-9:  460, 465 
133.2      (156) Diagnosis:  DIAPER RASH 
133.3   Treatment:  MEDICAL THERAPY 
133.4   ICD-9:  691.0 
133.5      (157) Diagnosis:  DISORDERS OF SWEAT GLANDS 
133.6   Treatment:  MEDICAL THERAPY 
133.7   ICD-9:  705.0-705.1, 705.81-705.83, 705.89, 705.9, 780.8 
133.8      (158) Diagnosis:  OTHER VIRAL INFECTIONS, EXCLUDING 
133.9   PNEUMONIA DUE TO RESPIRATORY SYNCYTIAL VIRUS IN PERSONS UNDER 
133.10  AGE 3 
133.11  Treatment:  MEDICAL THERAPY 
133.12  ICD-9:  052, 055, 056.79, 056.8-056.9, 057, 072, 074, 078.0, 
133.13  078.2, 078.4-078.8, 079.0-079.6, 079.88-079.89, 079.9, 480, 487 
133.14     (159) Diagnosis:  PHARYNGITIS AND LARYNGITIS AND OTHER 
133.15  DISEASES OF VOCAL CORDS 
133.16  Treatment:  MEDICAL THERAPY 
133.17  ICD-9:  462, 464.00, 464.50, 476, 478.5 
133.18     (160) Diagnosis:  CORNS AND CALLUSES 
133.19  Treatment:  MEDICAL THERAPY 
133.20  ICD-9:  700 
133.21     (161) Diagnosis:  VIRAL WARTS, EXCLUDING VENEREAL WARTS 
133.22  Treatment:  MEDICAL AND SURGICAL TREATMENT, CRYOSURGERY 
133.23  ICD-9:  078.0, 078.10, 078.19 
133.24     (162) Diagnosis:  OLD LACERATION OF CERVIX AND VAGINA 
133.25  Treatment:  MEDICAL THERAPY 
133.26  ICD-9:  621.5, 622.3, 624.4 
133.27     (163) Diagnosis:  TONGUE TIE AND OTHER ANOMALIES OF TONGUE 
133.28  Treatment:  FRENOTOMY, TONGUE TIE 
133.29  ICD-9:  529.5, 750.0-750.1 
133.30     (164) Diagnosis:  OPEN WOUND OF INTERNAL STRUCTURES OF 
133.31  MOUTH WITHOUT COMPLICATION 
133.32  Treatment:  REPAIR SOFT TISSUES 
133.33  ICD-9:  525.10, 525.12, 525.13, 525.19, 873.6 
133.34     (165) Diagnosis:  CENTRAL SEROUS RETINOPATHY 
133.35  Treatment:  LASER SURGERY 
133.36  ICD-9:  362.40-362.41, 362.6-362.7 
134.1      (166) Diagnosis:  SEBORRHEIC KERATOSIS, DYSCHROMIA, AND 
134.2   VASCULAR DISORDERS, SCAR CONDITIONS, AND FIBROSIS OF SKIN 
134.3   Treatment:  MEDICAL AND SURGICAL TREATMENT 
134.4   ICD-9:  278.1, 702.1-702.8, 709.1-709.3, 709.8-709.9 
134.5      (167) Diagnosis:  UNCOMPLICATED HEMORRHOIDS 
134.6   Treatment:  HEMORRHOIDECTOMY, MEDICAL THERAPY 
134.7   ICD-9:  455.0, 455.3, 455.6, 455.9 
134.8      (168) Diagnosis:  GANGLION 
134.9   Treatment:  EXCISION 
134.10  ICD-9:  727.02, 727.4 
134.11     (169) Diagnosis:  CHRONIC CONJUNCTIVITIS, 
134.12  BLEPHAROCONJUNCTIVITIS 
134.13  Treatment:  MEDICAL THERAPY 
134.14  ICD-9:  372.10-372.13, 372.2-372.3, 372.53, 372.73, 374.55 
134.15     (170) Diagnosis:  TOXIC ERYTHEMA, ACNE ROSACEA, DISCOID 
134.16  LUPUS 
134.17  Treatment:  MEDICAL THERAPY 
134.18  ICD-9:  695.0, 695.2-695.9 
134.19     (171) Diagnosis:  PERIPHERAL NERVE DISORDERS 
134.20  Treatment:  MEDICAL THERAPY 
134.21  ICD-9:  337.2, 353, 354.1, 354.3-354.9, 355.0, 355.3, 
134.22  355.7-355.8, 357.5-357.9, 723.2 
134.23     (172) Diagnosis:  OTHER COMPLICATIONS OF A PROCEDURE 
134.24  Treatment:  MEDICAL AND SURGICAL TREATMENT 
134.25  ICD-9:  371.82, 457.0, 998.81, 998.9 
134.26     (173) Diagnosis:  RAYNAUD'S SYNDROME 
134.27  Treatment:  MEDICAL THERAPY 
134.28  ICD-9:  443.0, 443.89, 443.9 
134.29     (174) Diagnosis:  TMJ DISORDERS 
134.30  Treatment:  TMJ SURGERY 
134.31  ICD-9:  524.5, 524.6, 718.08, 718.18, 718.28, 718.38, 718.58 
134.32     (175) Diagnosis:  VARICOSE VEINS OF LOWER EXTREMITIES 
134.33  WITHOUT ULCER OR INFLAMMATION 
134.34  Treatment:  STRIPPING/SCLEROTHERAPY 
134.35  ICD-9:  454.9, 459, 607.82 
134.36     (176) Diagnosis:  VULVAL VARICES 
135.1   Treatment:  VASCULAR SURGERY 
135.2   ICD-9:  456.6 
135.3      (177) Diagnosis:  CHRONIC PANCREATITIS 
135.4   Treatment:  SURGICAL TREATMENT 
135.5   ICD-9:  577.1 
135.6      (178) Diagnosis:  CHRONIC PROSTATITIS, OTHER DISORDERS OF 
135.7   PROSTATE 
135.8   Treatment:  MEDICAL THERAPY 
135.9   ICD-9:  601.1, 601.3, 601.9, 602 
135.10     (179) Diagnosis:  MUSCULAR CALCIFICATION AND OSSIFICATION 
135.11  Treatment:  MEDICAL THERAPY 
135.12  ICD-9:  728.1 
135.13     (180) Diagnosis:  CANCER OF VARIOUS SITES WHERE TREATMENT 
135.14  WILL NOT RESULT IN A FIVE PERCENT FIVE-YEAR SURVIVAL 
135.15  Treatment:  CURATIVE MEDICAL AND SURGICAL TREATMENT 
135.16  ICD-9:  140-208 
135.17     (181) Diagnosis:  AGENESIS OF LUNG 
135.18  Treatment:  MEDICAL THERAPY 
135.19  ICD-9:  748.5 
135.20     (182) Diagnosis:  DISEASE OF CAPILLARIES 
135.21  Treatment:  EXCISION 
135.22  ICD-9:  448.1-448.9 
135.23     (183) Diagnosis:  BENIGN POLYPS OF VOCAL CORDS 
135.24  Treatment:  MEDICAL THERAPY, STRIPPING 
135.25  ICD-9:  478.4 
135.26     (184) Diagnosis:  FRACTURES OF RIBS AND STERNUM, CLOSED 
135.27  Treatment:  MEDICAL THERAPY 
135.28  ICD-9:  807.0, 807.2, 805.6, 839.41 
135.29     (185) Diagnosis:  CLOSED FRACTURE OF ONE OR MORE PHALANGES 
135.30  OF THE FOOT, NOT INCLUDING THE GREAT TOE 
135.31  Treatment:  MEDICAL AND SURGICAL TREATMENT 
135.32  ICD-9:  826.0 
135.33     (186) Diagnosis:  DISEASES OF THYMUS GLAND 
135.34  Treatment:  MEDICAL THERAPY 
135.35  ICD-9:  254 
135.36     (187) Diagnosis:  DENTAL CONDITIONS WHERE TREATMENT RESULTS 
136.1   IN MARGINAL IMPROVEMENT 
136.2   Treatment:  ELECTIVE DENTAL SERVICES 
136.3   ICD-9:  520.7, V72.2 
136.4      (188) Diagnosis:  ANTISOCIAL PERSONALITY DISORDER 
136.5   Treatment:  MEDICAL/PSYCHOTHERAPY 
136.6   ICD-9:  301.7 
136.7      (189) Diagnosis:  SEBACEOUS CYST 
136.8   Treatment:  MEDICAL AND SURGICAL THERAPY 
136.9   ICD-9:  685.1, 706.2, 744.47 
136.10     (190) Diagnosis:  CENTRAL RETINAL ARTERY OCCLUSION 
136.11  Treatment:  PARACENTESIS OF AQUEOUS 
136.12  ICD-9:  362.31-362.33 
136.13     (191) Diagnosis:  ORAL APHTHAE 
136.14  Treatment:  MEDICAL THERAPY 
136.15  ICD-9:  528.2 
136.16     (192) Diagnosis:  SUBLINGUAL, SCROTAL, AND PELVIC VARICES 
136.17  Treatment:  VENOUS INJECTION, VASCULAR SURGERY 
136.18  ICD-9:  456.3-456.5 
136.19     (193) Diagnosis:  SUPERFICIAL WOUNDS WITHOUT INFECTION AND 
136.20  CONTUSIONS 
136.21  Treatment:  MEDICAL THERAPY 
136.22  ICD-9:  910.0, 910.2, 910.4, 910.6, 910.8, 911.0, 911.2, 911.4, 
136.23  91.6, 911.8, 912.0, 912.2, 912.4, 912.6, 912.8, 913.0, 913.2, 
136.24  913.4, 913.6, 913.8, 914.0, 914.2, 914.4, 914.6, 914.8, 915.0, 
136.25  915.2, 915.4, 915.6, 915.8, 916.0, 916.2, 916.4, 916.6, 916.8, 
136.26  917.0, 917.2, 917.4, 917.6, 917.8, 919.0, 919.2, 919.4, 919.6, 
136.27  919.8, 920-924, 959.0-959.8 
136.28     (194) Diagnosis:  UNSPECIFIED RETINAL VASCULAR OCCLUSION 
136.29  Treatment:  LASER SURGERY 
136.30  ICD-9:  362.30 
136.31     (195) Diagnosis:  BENIGN NEOPLASM OF EXTERNAL FEMALE 
136.32  GENITAL ORGANS 
136.33  Treatment:  EXCISION 
136.34  ICD-9:  221.1-221.9 
136.35     (196) Diagnosis:  BENIGN NEOPLASM OF MALE GENITAL ORGANS:  
136.36  TESTIS, PROSTATE, EPIDIDYMIS 
137.1   Treatment:  MEDICAL AND SURGICAL TREATMENT 
137.2   ICD-9:  222.0, 222.2, 222.3, 222.8, 222.9 
137.3      (197) Diagnosis:  XEROSIS 
137.4   Treatment:  MEDICAL THERAPY 
137.5   ICD-9:  706.8 
137.6      (198) Diagnosis:  CONGENITAL CYSTIC LUNG - SEVERE 
137.7   Treatment:  LUNG RESECTION 
137.8   ICD-9:  748.4 
137.9      (199) Diagnosis:  ICHTHYOSIS 
137.10  Treatment:  MEDICAL THERAPY 
137.11  ICD-9:  757.1 
137.12     (200) Diagnosis:  LYMPHEDEMA 
137.13  Treatment:  MEDICAL THERAPY, OTHER OPERATION ON LYMPH CHANNEL 
137.14  ICD-9:  457.1-457.9, 757.0 
137.15     (201) Diagnosis:  DERMATOLOGICAL CONDITIONS WITH NO 
137.16  EFFECTIVE TREATMENT OR NO TREATMENT NECESSARY 
137.17  Treatment:  MEDICAL AND SURGICAL TREATMENT 
137.18  ICD-9:  696.3-696.5, 709.0, 757.2-757.3, 757.8-757.9 
137.19     (202) Diagnosis:  INFECTIOUS DISEASES WITH NO EFFECTIVE 
137.20  TREATMENTS OR NO TREATMENT NECESSARY 
137.21  Treatment:  EVALUATION 
137.22  ICD-9:  071, 136.0, 136.9 
137.23     (203) Diagnosis:  RESPIRATORY CONDITIONS WITH NO EFFECTIVE 
137.24  TREATMENTS OR NO TREATMENT NECESSARY 
137.25  Treatment:  EVALUATION 
137.26  ICD-9:  519.3, 519.9, 748.60, 748.69, 748.9 
137.27     (204) Diagnosis:  GENITOURINARY CONDITIONS WITH NO 
137.28  EFFECTIVE TREATMENTS OR NO TREATMENT NECESSARY 
137.29  Treatment:  EVALUATION 
137.30  ICD-9:  593.0-593.1, 593.6, 607.9, 608.3, 608.9, 621.6, 
137.31  621.8-621.9, 626.9, 629.8, 752.9 
137.32     (205) Diagnosis:  CARDIOVASCULAR CONDITIONS WITH NO 
137.33  EFFECTIVE TREATMENTS OR NO TREATMENT NECESSARY 
137.34  Treatment:  EVALUATION 
137.35  ICD-9:  429.3, 429.81-429.82, 429.89, 429.9, 747.9 
137.36     (206) Diagnosis:  MUSCULOSKELETAL CONDITIONS WITH NO 
138.1   EFFECTIVE TREATMENTS OR NO TREATMENT NECESSARY 
138.2   Treatment:  EVALUATION 
138.3   ICD-9:  716.9, 718.00, 718.10, 718.20, 718.40, 718.50, 718.60, 
138.4   718.80, 718.9, 719.7, 719.9, 728.5, 728.84, 728.9, 731.2, 
138.5   738.2-738.3, 738.9, 744.5-744.9, 748.1, 755.9, 756.9 
138.6      (207) Diagnosis:  INTRACRANIAL CONDITIONS WITH NO EFFECTIVE 
138.7   TREATMENTS OR NO TREATMENT NECESSARY 
138.8   Treatment:  EVALUATION 
138.9   ICD-9:  348.2, 377.01, 377.02, 377.2, 377.3, 377.5, 377.7, 
138.10  437.7-437.8 
138.11     (208) Diagnosis:  SENSORY ORGAN CONDITIONS WITH NO 
138.12  EFFECTIVE TREATMENTS OR NO TREATMENT NECESSARY 
138.13  Treatment:  EVALUATION 
138.14  ICD-9:  360.30-360.31, 360.33, 362.37, 362.42-362.43, 
138.15  362.8-362.9, 363.21, 364.5, 364.60, 364.9, 371.20, 371.22, 
138.16  371.24, 371.3, 371.81, 371.89, 371.9, 372.40-372.42, 
138.17  372.44-372.45, 372.50-372.52, 372.55, 372.8-372.9, 
138.18  374.52-374.53, 374.81-374.83, 374.9, 376.82, 376.89, 376.9, 
138.19  377.03, 377.1, 377.4, 377.6, 379.24, 379.29, 379.4-379.8, 380.9, 
138.20  747.47 
138.21     (209) Diagnosis:  ENDOCRINE AND METABOLIC CONDITIONS WITH 
138.22  NO EFFECTIVE TREATMENTS OR NO TREATMENT NECESSARY 
138.23  Treatment:  EVALUATION 
138.24  ICD-9:  251.1-251.2, 259.4, 259.8-259.9, 277.3, 759.1 
138.25     (210) Diagnosis:  GASTROINTESTINAL CONDITIONS WITH NO 
138.26  EFFECTIVE TREATMENTS OR NO TREATMENT NECESSARY 
138.27  Treatment:  EVALUATION 
138.28  ICD-9:  527.0, 569.9, 573.9 
138.29     (211) Diagnosis:  MENTAL DISORDERS WITH NO EFFECTIVE 
138.30  TREATMENTS OR NO TREATMENT NECESSARY 
138.31  Treatment:  EVALUATION 
138.32  ICD-9:  313.1, 313.3, 313.83 
138.33     (212) Diagnosis:  NEUROLOGIC CONDITIONS WITH NO EFFECTIVE 
138.34  TREATMENTS OR NO TREATMENT NECESSARY 
138.35  Treatment:  EVALUATION 
138.36  ICD-9:  333.82, 333.84, 333.91, 333.93 
139.1      (213) Diagnosis:  DENTAL CONDITIONS (e.g., ORTHODONTICS) 
139.2   Treatment:  COSMETIC DENTAL SERVICES 
139.3   ICD-9:  520.0-520.5, 520.8-520.9, 521.1-521.9, 522.3, V72.2 
139.4      (214) Diagnosis:  TUBAL DYSFUNCTION AND OTHER CAUSES OF 
139.5   INFERTILITY 
139.6   Treatment:  IN-VITRO FERTILIZATION, GIFT 
139.7   ICD-9:  256 
139.8      (215) Diagnosis:  HEPATORENAL SYNDROME 
139.9   Treatment:  MEDICAL THERAPY 
139.10  ICD-9:  572.4 
139.11     (216) Diagnosis:  SPASTIC DYSPHONIA 
139.12  Treatment:  MEDICAL THERAPY 
139.13  ICD-9:  478.79 
139.14     (217) Diagnosis:  DISORDERS OF REFRACTION AND ACCOMMODATION 
139.15  Treatment:  RADIAL KERATOTOMY 
139.16  ICD-9:  367, 368.1-368.9 
139.17     (b) The commissioner of human services shall identify the 
139.18  related CPT codes that correspond with the diagnosis/treatment 
139.19  pairings described in this section.  The identification of the 
139.20  related CPT codes is not subject to the requirements of 
139.21  Minnesota Statutes, chapter 14. 
139.22     Subd. 4.  [FEDERAL APPROVAL.] The commissioner of human 
139.23  services shall seek federal approval to eliminate medical 
139.24  assistance coverage for the diagnosis/treatment pairings 
139.25  described in subdivision 3. 
139.26     Subd. 5.  [NONEXPANSION OF COVERED SERVICES.] Nothing in 
139.27  this section shall be construed to expand medical assistance 
139.28  coverage to services that are not currently covered under the 
139.29  medical assistance program as of June 30, 2003.  
139.30     Sec. 61.  [REPEALER.] 
139.31     Minnesota Statutes 2002, sections 256.955, subdivision 8; 
139.32  and 256B.0625, subdivision 5a, are repealed July 1, 2003. 
139.33                             ARTICLE 3
139.34                        HEALTH MISCELLANEOUS
139.35     Section 1.  Minnesota Statutes 2002, section 62E.06, 
139.36  subdivision 1, is amended to read: 
140.1      Subdivision 1.  [NUMBER THREE PLAN.] A plan of health 
140.2   coverage shall be certified as a number three qualified plan if 
140.3   it otherwise meets the requirements established by chapters 62A, 
140.4   62C, and 62Q, and the other laws of this state, whether or not 
140.5   the policy is issued in Minnesota, and meets or exceeds the 
140.6   following minimum standards: 
140.7      (a) The minimum benefits for a covered individual shall, 
140.8   subject to the other provisions of this subdivision, be equal to 
140.9   at least 80 percent of the cost of covered services in excess of 
140.10  an annual deductible which does not exceed $150 per person.  The 
140.11  coverage shall include a limitation of $3,000 per person on 
140.12  total annual out-of-pocket expenses for services covered under 
140.13  this subdivision.  The coverage shall be subject to a maximum 
140.14  lifetime benefit of not less than $1,000,000. 
140.15     The $3,000 limitation on total annual out-of-pocket 
140.16  expenses and the $1,000,000 maximum lifetime benefit shall not 
140.17  be subject to change or substitution by use of an actuarially 
140.18  equivalent benefit. 
140.19     (b) Covered expenses shall be the usual and customary 
140.20  charges for the following services and articles when prescribed 
140.21  by a physician: 
140.22     (1) hospital services; 
140.23     (2) professional services for the diagnosis or treatment of 
140.24  injuries, illnesses, or conditions, other than dental, which are 
140.25  rendered by a physician or at the physician's direction; 
140.26     (3) drugs requiring a physician's prescription; 
140.27     (4) services of a nursing home for not more than 120 days 
140.28  in a year if the services would qualify as reimbursable services 
140.29  under Medicare; 
140.30     (5) services of a home health agency if the services would 
140.31  qualify as reimbursable services under Medicare; 
140.32     (6) use of radium or other radioactive materials; 
140.33     (7) oxygen; 
140.34     (8) anesthetics; 
140.35     (9) prostheses other than dental but including scalp hair 
140.36  prostheses worn for hair loss suffered as a result of alopecia 
141.1   areata; 
141.2      (10) rental or purchase, as appropriate, of durable medical 
141.3   equipment other than eyeglasses and hearing aids, unless 
141.4   coverage is required under section 62Q.675; 
141.5      (11) diagnostic x-rays and laboratory tests; 
141.6      (12) oral surgery for partially or completely unerupted 
141.7   impacted teeth, a tooth root without the extraction of the 
141.8   entire tooth, or the gums and tissues of the mouth when not 
141.9   performed in connection with the extraction or repair of teeth; 
141.10     (13) services of a physical therapist; 
141.11     (14) transportation provided by licensed ambulance service 
141.12  to the nearest facility qualified to treat the condition; or a 
141.13  reasonable mileage rate for transportation to a kidney dialysis 
141.14  center for treatment; and 
141.15     (15) services of an occupational therapist. 
141.16     (c) Covered expenses for the services and articles 
141.17  specified in this subdivision do not include the following: 
141.18     (1) any charge for care for injury or disease either (i) 
141.19  arising out of an injury in the course of employment and subject 
141.20  to a workers' compensation or similar law, (ii) for which 
141.21  benefits are payable without regard to fault under coverage 
141.22  statutorily required to be contained in any motor vehicle, or 
141.23  other liability insurance policy or equivalent self-insurance, 
141.24  or (iii) for which benefits are payable under another policy of 
141.25  accident and health insurance, Medicare, or any other 
141.26  governmental program except as otherwise provided by section 
141.27  62A.04, subdivision 3, clause (4); 
141.28     (2) any charge for treatment for cosmetic purposes other 
141.29  than for reconstructive surgery when such service is incidental 
141.30  to or follows surgery resulting from injury, sickness, or other 
141.31  diseases of the involved part or when such service is performed 
141.32  on a covered dependent child because of congenital disease or 
141.33  anomaly which has resulted in a functional defect as determined 
141.34  by the attending physician; 
141.35     (3) care which is primarily for custodial or domiciliary 
141.36  purposes which would not qualify as eligible services under 
142.1   Medicare; 
142.2      (4) any charge for confinement in a private room to the 
142.3   extent it is in excess of the institution's charge for its most 
142.4   common semiprivate room, unless a private room is prescribed as 
142.5   medically necessary by a physician, provided, however, that if 
142.6   the institution does not have semiprivate rooms, its most common 
142.7   semiprivate room charge shall be considered to be 90 percent of 
142.8   its lowest private room charge; 
142.9      (5) that part of any charge for services or articles 
142.10  rendered or prescribed by a physician, dentist, or other health 
142.11  care personnel which exceeds the prevailing charge in the 
142.12  locality where the service is provided; and 
142.13     (6) any charge for services or articles the provision of 
142.14  which is not within the scope of authorized practice of the 
142.15  institution or individual rendering the services or articles. 
142.16     (d) The minimum benefits for a qualified plan shall 
142.17  include, in addition to those benefits specified in clauses (a) 
142.18  and (e), benefits for well baby care, effective July 1, 1980, 
142.19  subject to applicable deductibles, coinsurance provisions, and 
142.20  maximum lifetime benefit limitations. 
142.21     (e) Effective July 1, 1979, the minimum benefits of a 
142.22  qualified plan shall include, in addition to those benefits 
142.23  specified in clause (a), a second opinion from a physician on 
142.24  all surgical procedures expected to cost a total of $500 or more 
142.25  in physician, laboratory, and hospital fees, provided that the 
142.26  coverage need not include the repetition of any diagnostic tests.
142.27     (f) Effective August 1, 1985, the minimum benefits of a 
142.28  qualified plan must include, in addition to the benefits 
142.29  specified in clauses (a), (d), and (e), coverage for special 
142.30  dietary treatment for phenylketonuria when recommended by a 
142.31  physician. 
142.32     (g) Outpatient mental health coverage is subject to section 
142.33  62A.152, subdivision 2.  
142.34     <b>[EFFECTIVE DATE.]</b> This section is effective August 1, 2003, 
142.35  and applies to policies and plans issued or renewed to provide 
142.36  coverage to Minnesota residents on or after that date.  
143.1      Sec. 2.  Minnesota Statutes 2002, section 62J.17, 
143.2   subdivision 2, is amended to read: 
143.3      Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
143.4   terms defined in this subdivision have the meanings given. 
143.5      (a)  "Access" means the financial, temporal, and geographic 
143.6   availability of health care to individuals who need it. 
143.7      (b)  "Capital expenditure" means an expenditure which, 
143.8   under generally accepted accounting principles, is not properly 
143.9   chargeable as an expense of operation and maintenance. 
143.10     (c)  "Cost" means the amount paid by consumers or third 
143.11  party payers for health care services or products. 
143.12     (d)  "Date of the major spending commitment" means the date 
143.13  the provider formally obligated itself to the major spending 
143.14  commitment.  The obligation may be incurred by entering into a 
143.15  contract, making a down payment, issuing bonds or entering a 
143.16  loan agreement to provide financing for the major spending 
143.17  commitment, or taking some other formal, tangible action 
143.18  evidencing the provider's intention to make the major spending 
143.19  commitment.  
143.20     (e)  "Health care service" means: 
143.21     (1) a service or item that would be covered by the medical 
143.22  assistance program under chapter 256B if provided in accordance 
143.23  with medical assistance requirements to an eligible medical 
143.24  assistance recipient; and 
143.25     (2) a service or item that would be covered by medical 
143.26  assistance except that it is characterized as experimental, 
143.27  cosmetic, or voluntary. 
143.28     "Health care service" does not include retail, 
143.29  over-the-counter sales of nonprescription drugs and other retail 
143.30  sales of health-related products that are not generally paid for 
143.31  by medical assistance and other third-party coverage. 
143.32     (f)  "Major spending commitment" means an expenditure in 
143.33  excess of $500,000, but less than or equal to $2,000,000, for: 
143.34     (1) acquisition of a unit of medical equipment; 
143.35     (2) a capital expenditure for a single project for the 
143.36  purposes of providing health care services, other than for the 
144.1   acquisition of medical equipment; 
144.2      (3) offering a new specialized service not offered before; 
144.3      (4) planning for an activity that would qualify as a major 
144.4   spending commitment under this paragraph; or 
144.5      (5) a project involving a combination of two or more of the 
144.6   activities in clauses (1) to (4). 
144.7      The cost of acquisition of medical equipment, and the 
144.8   amount of a capital expenditure, is the total cost to the 
144.9   provider regardless of whether the cost is distributed over time 
144.10  through a lease arrangement or other financing or payment 
144.11  mechanism.  
144.12     (g)  "Medical equipment" means fixed and movable equipment 
144.13  that is used by a provider in the provision of a health care 
144.14  service.  "Medical equipment" includes, but is not limited to, 
144.15  the following: 
144.16     (1) an extracorporeal shock wave lithotripter; 
144.17     (2) a computerized axial tomography (CAT) scanner; 
144.18     (3) a magnetic resonance imaging (MRI) unit; 
144.19     (4) a positron emission tomography (PET) scanner; and 
144.20     (5) emergency and nonemergency medical transportation 
144.21  equipment and vehicles. 
144.22     (h)  "New specialized service" means a specialized health 
144.23  care procedure or treatment regimen offered by a provider that 
144.24  was not previously offered by the provider, including, but not 
144.25  limited to:  
144.26     (1) cardiac catheterization services involving high-risk 
144.27  patients as defined in the Guidelines for Coronary Angiography 
144.28  established by the American Heart Association and the American 
144.29  College of Cardiology; 
144.30     (2) heart, heart-lung, liver, kidney, bowel, or pancreas 
144.31  transplantation service, or any other service for 
144.32  transplantation of any other organ; 
144.33     (3) megavoltage radiation therapy; 
144.34     (4) open heart surgery; 
144.35     (5) neonatal intensive care services; and 
144.36     (6) any new medical technology for which premarket approval 
145.1   has been granted by the United States Food and Drug 
145.2   Administration, excluding implantable and wearable devices. 
145.3      Sec. 3.  [62J.18] [PROVIDER REPORTING IN EXCESS OF 
145.4   $2,000,000.] 
145.5      Subdivision 1.  [APPLICABILITY; DEFINITIONS.] (a) This 
145.6   section applies to providers and to persons who would become 
145.7   providers after making the expenditures described in subdivision 
145.8   2.  
145.9      (b) For purposes of this section, the terms used have the 
145.10  meanings given in section 62J.17, subdivision 2, except that 
145.11  "major spending commitment" means an expenditure in excess of 
145.12  $2,000,000.  
145.13     Subd. 2.  [REPORTING REQUIREMENT.] (a) A provider that 
145.14  intends to make a major spending commitment in excess of 
145.15  $2,000,000 for the acquisition, by purchase or lease, of a unit 
145.16  of medical equipment or in excess of $2,000,000 for a single 
145.17  capital project for the purposes of providing health care 
145.18  services must file a report with the commissioner at least 60 
145.19  days before committing to make the expenditure.  The report must 
145.20  contain the information described in section 62J.17, subdivision 
145.21  4a, paragraphs (b) and (c).  
145.22     (b) The commissioner shall maintain a database to track 
145.23  expenditures reported under this subdivision. 
145.24     (c) The commissioner shall maintain a list of all persons 
145.25  who have registered with the commissioner for the purpose of 
145.26  receiving notice by electronic mail of a report filed under this 
145.27  subdivision.  The commissioner shall, within 15 days of 
145.28  receiving an expenditure report, provide notice of such report 
145.29  by electronic mail to all persons on its list, and by 
145.30  publication in the State Register.  The notice must include 
145.31  either a copy of the report or an easily understandable 
145.32  description of the proposed expenditure in the report.  The 
145.33  notice in the State Register must include a copy of the report, 
145.34  along with an easily understandable description of the proposed 
145.35  expenditure in the report.  In addition, the commissioner shall 
145.36  make reasonable efforts to notify persons or classes of persons 
146.1   who may be significantly affected by the proposed expenditure in 
146.2   the report.  The commissioner may recover the reasonable costs 
146.3   incurred in providing notice provided in this paragraph through 
146.4   costs paid by third parties involved in proceedings provided in 
146.5   this section.  
146.6      (d) No provider may commit to making the expenditure until 
146.7   the procedures described in this section are completed.  
146.8      Subd. 3.  [PUBLIC MEETING.] (a) Within 30 days from the 
146.9   date the notice requirements of subdivision 2, paragraph (c), 
146.10  are satisfied, a third party may request a public meeting on 
146.11  expenditures that exceed $2,000,000.  The public meeting shall 
146.12  serve as an informational forum for the provider to answer 
146.13  inquiries of interested third parties.  
146.14     (b) The commissioner shall arrange for and coordinate the 
146.15  meeting on an expedited basis.  The party requesting the meeting 
146.16  shall pay the commissioner for the commissioner's cost of the 
146.17  meeting, as determined by the commissioner.  Money received by 
146.18  the commissioner for reimbursement under this section is 
146.19  appropriated to the commissioner for the purpose of 
146.20  administering this section.  
146.21     Subd. 4.  [PUBLIC MEETING EXCEPTIONS.] (a) Subdivisions 3, 
146.22  5, and 6 do not apply to an expenditure:  
146.23     (1) to replace existing equipment with comparable equipment 
146.24  used for direct patient care.  Upgrades of equipment beyond the 
146.25  current model or comparable model are subject to subdivisions 3, 
146.26  5, and 6; 
146.27     (2) made by a research and teaching institution for 
146.28  purposes of conducting medical education, medical research 
146.29  supported or sponsored by a medical school or by a federal or 
146.30  foundation grant, or clinical trials; 
146.31     (3) to repair, remodel, or replace existing buildings or 
146.32  fixtures if, in the judgment of the commissioner, the project 
146.33  does not involve a substantial expansion of service capacity or 
146.34  a substantial change in the nature of health care services 
146.35  provided; 
146.36     (4) for building maintenance including heating, water, 
147.1   electricity, and other maintenance-related expenditures; 
147.2      (5) for activities not directly related to the delivery of 
147.3   patient care services, including food service, laundry, 
147.4   housekeeping, and other service-related activities; and 
147.5      (6) for computer equipment or data systems not directly 
147.6   related to the delivery of patient care services, including 
147.7   computer equipment or data systems related to medical record 
147.8   automation. 
147.9      (b) In addition to the exceptions listed in paragraph (a), 
147.10  subdivisions 3, 5, and 6 do not apply to mergers, acquisitions, 
147.11  and other changes in ownership or control that, in the judgment 
147.12  of the commissioner, do not involve a substantial expansion of 
147.13  service capacity or a substantial change in the nature of health 
147.14  care services provided. 
147.15     Subd. 5.  [HEARING.] (a) Within 30 days from the date of a 
147.16  public meeting under subdivision 3, a third party may request 
147.17  that the planned expenditure be subject to a hearing before the 
147.18  commissioner.  The hearing and review of the planned expenditure 
147.19  shall be according to the relevant provisions of the 
147.20  Administrative Procedure Act, except as otherwise provided in 
147.21  this subdivision. 
147.22     (b) A hearing under this subdivision shall be a public 
147.23  proceeding. 
147.24     (c) A party to the hearing must pay for the party's 
147.25  representation before the commissioner.  The party requesting 
147.26  the hearing must pay the commissioner for the commissioner's 
147.27  cost of the hearing, as determined by the commissioner.  Costs 
147.28  of the hearing shall include, but not be limited to, the cost of 
147.29  the hearing and costs related to the commissioner's findings and 
147.30  order as provided in this section.  Money received by the 
147.31  commissioner for reimbursement under this section is 
147.32  appropriated to the commissioner for the purpose of 
147.33  administering this section.  Reimbursement by the party shall 
147.34  not be contingent upon and shall not affect the commissioner's 
147.35  findings and order under this section.  
147.36     (d) A hearing requested under this subdivision must proceed 
148.1   on an expedited basis. 
148.2      Subd. 6.  [HEARING CRITERIA; DECISION; RULES.] (a) The 
148.3   commissioner shall consider the following criteria: 
148.4      (1) need and access, including but not limited to: 
148.5      (i) the need of the population served or to be served by 
148.6   the proposed health services for those services; 
148.7      (ii) the project's contribution to meeting the needs of the 
148.8   medically underserved, including persons in rural areas, 
148.9   low-income persons, racial and ethnic minorities, persons with 
148.10  disabilities, and the elderly, as well as the extent to which 
148.11  medically underserved residents in the provider's service area 
148.12  are likely to have access to the proposed health service; and 
148.13     (iii) the distance, convenience, cost of transportation, 
148.14  and accessibility to health services for those to be served by 
148.15  the proposed health services; 
148.16     (2) quality of health care, including but not limited to: 
148.17     (i) the impact of the proposed service on the quality of 
148.18  health services available to those proposed to be served by the 
148.19  project; and 
148.20     (ii) the impact of the proposed service on the quality of 
148.21  health services offered by other providers; 
148.22     (3) cost of health care, including but not limited to: 
148.23     (i) the financial feasibility of the proposal; 
148.24     (ii) probable impact of the proposal on the costs of and 
148.25  charges for providing health services by the person proposing 
148.26  the service; 
148.27     (iii) probable impact of the proposal on the costs of and 
148.28  charges for health services provided by other providers; 
148.29     (iv) probable impact of the proposal on reimbursement for 
148.30  the proposed services; and 
148.31     (v) the relationship, including the organizational 
148.32  relationship, of the proposed health services to ancillary or 
148.33  support services; 
148.34     (4) alternatives available to the provider, including but 
148.35  not limited to: 
148.36     (i) the availability of alternative, less costly, or more 
149.1   effective methods of providing the proposed health services; 
149.2      (ii) the relationship of the proposed project to the 
149.3   long-range development plan, if any, of the person or entity 
149.4   providing or proposing the services; and 
149.5      (iii) possible sharing or cooperative arrangements among 
149.6   existing facilities and providers; and 
149.7      (5) other considerations, including but not limited to: 
149.8      (i) the best interests of the patients, including conflicts 
149.9   of interest that may be present in influencing the utilization 
149.10  of the services, facility, or equipment relating to the 
149.11  expenditures; 
149.12     (ii) special needs and circumstances of those entities that 
149.13  provide a substantial portion of their services or resources, or 
149.14  both, to individuals not residing in the immediate geographic 
149.15  area in which the entities are located, which entities may 
149.16  include but are not limited to medical and other health 
149.17  professional schools, multidisciplinary clinics, and specialty 
149.18  centers; 
149.19     (iii) the special needs and circumstances of biomedical and 
149.20  behavioral research projects designed to meet a national need 
149.21  and for which local conditions offer special advantages; and 
149.22     (iv) the impact of the proposed project on fostering 
149.23  competition between providers. 
149.24     (b) The commissioner may adopt rules to establish 
149.25  additional hearing criteria. 
149.26     (c) After applying the criteria under this subdivision, the 
149.27  commissioner shall make findings of fact as to whether the 
149.28  planned expenditure is needed to ensure quality health care.  If 
149.29  the commissioner finds that the planned expenditure is not 
149.30  needed to ensure quality health care, the commissioner shall 
149.31  obtain an injunction prohibiting the provider from making the 
149.32  planned expenditure.  The order of the commissioner constitutes 
149.33  the final decision in the case as applicable under section 
149.34  14.62.  A final decision in the case is entitled to judicial 
149.35  review under the provisions of sections 14.63 to 14.69.  In an 
149.36  event of an appeal, each party must pay the party's respective 
150.1   costs, except that the party bringing the appeal must pay all 
150.2   costs if the appeal is unsuccessful. 
150.3      Subd. 7.  [ENFORCEMENT.] The commissioner may enforce this 
150.4   section by denying or refusing to reissue the permit, license, 
150.5   registration, or certificate of a provider that does not comply 
150.6   with this section, according to section 144.99, subdivision 8.  
150.7   Compliance with this section is a condition of medical 
150.8   assistance reimbursement.  The commissioner of employee 
150.9   relations shall not permit a provider that does not comply with 
150.10  this section to provide services to state employees.  In 
150.11  addition, the commissioner may assess fines against a provider 
150.12  that incurs an expenditure that is found by the commissioner as 
150.13  not needed to ensure quality health care pursuant to the 
150.14  provisions of this section in an amount up to triple the amount 
150.15  of the expenditure.  
150.16     Subd. 8.  [RETROSPECTIVE REVIEW.] Nothing in this section 
150.17  or in section 62J.17 shall be construed to prohibit the 
150.18  commissioner from conducting a retrospective review of an 
150.19  expenditure in excess of $2,000,000 in accordance with section 
150.20  62J.17, subdivision 5a.  
150.21     Sec. 4.  Minnesota Statutes 2002, section 62J.23, is 
150.22  amended by adding a subdivision to read: 
150.23     Subd. 5.  [AUDITS OF EXEMPT PROVIDERS.] The commissioner 
150.24  may audit the referral patterns of providers that qualify for 
150.25  exceptions under the federal Stark Law, United States Code, 
150.26  title 42, section 1395nn.  The commissioner has access to 
150.27  provider records according to section 144.99, subdivision 2.  
150.28  The commissioner shall report to the legislature any audit 
150.29  results that reveal a pattern of referrals by a provider for the 
150.30  furnishing of health services to an entity with which the 
150.31  provider has a direct or indirect financial relationship. 
150.32     Sec. 5.  Minnesota Statutes 2002, section 62J.692, 
150.33  subdivision 1, is amended to read: 
150.34     Subdivision 1.  [DEFINITIONS.] For purposes of this 
150.35  section, the following definitions apply: 
150.36     (a) "Accredited clinical training" means the clinical 
151.1   training provided by a medical education program that is 
151.2   accredited through an organization recognized by the department 
151.3   of education, the Centers for Medicare and Medicaid Services, or 
151.4   another national body who reviews the accrediting organizations 
151.5   for multiple disciplines and whose standards for recognizing 
151.6   accrediting organizations are reviewed and approved by the 
151.7   commissioner of health in consultation with the medical 
151.8   education and research advisory committee. 
151.9      (b) "Commissioner" means the commissioner of health. 
151.10     (c) "Clinical medical education program" means the 
151.11  accredited clinical training of physicians (medical students and 
151.12  residents), doctor of pharmacy practitioners, doctors of 
151.13  chiropractic, dentists, advanced practice nurses (clinical nurse 
151.14  specialists, certified registered nurse anesthetists, nurse 
151.15  practitioners, and certified nurse midwives), and physician 
151.16  assistants. 
151.17     (d) "Sponsoring institution" means a hospital, school, or 
151.18  consortium located in Minnesota that sponsors and maintains 
151.19  primary organizational and financial responsibility for a 
151.20  clinical medical education program in Minnesota and which is 
151.21  accountable to the accrediting body. 
151.22     (e) "Teaching institution" means a hospital, medical 
151.23  center, clinic, or other organization that conducts a clinical 
151.24  medical education program in Minnesota. 
151.25     (f) "Trainee" means a student or resident involved in a 
151.26  clinical medical education program.  
151.27     (g) "Eligible trainee FTEs" means the number of trainees, 
151.28  as measured by full-time equivalent counts, that are at training 
151.29  sites located in Minnesota with a medical assistance provider 
151.30  number where training occurs in either an inpatient or 
151.31  ambulatory patient care setting and where the training is 
151.32  funded, in part, by patient care revenues. 
151.33     Sec. 6.  Minnesota Statutes 2002, section 62J.692, 
151.34  subdivision 2, is amended to read: 
151.35     Subd. 2.  [MEDICAL EDUCATION AND RESEARCH ADVISORY 
151.36  COMMITTEE.] The commissioner shall appoint an advisory committee 
152.1   to provide advice and oversight on the distribution of funds 
152.2   appropriated for distribution under this section.  In appointing 
152.3   the members, the commissioner shall:  
152.4      (1) consider the interest of all stakeholders; 
152.5      (2) appoint members that represent both urban and rural 
152.6   interests; and 
152.7      (3) appoint members that represent ambulatory care as well 
152.8   as inpatient perspectives.  
152.9   The commissioner shall appoint to the advisory committee 
152.10  representatives of the following groups to ensure appropriate 
152.11  representation of all eligible provider groups and other 
152.12  stakeholders:  public and private medical researchers; public 
152.13  and private academic medical centers, including representatives 
152.14  from academic centers offering accredited training programs for 
152.15  physicians, pharmacists, chiropractors, dentists, nurses, and 
152.16  physician assistants; managed care organizations; employers; 
152.17  consumers and other relevant stakeholders.  The advisory 
152.18  committee is governed by section 15.059. 
152.19     Sec. 7.  Minnesota Statutes 2002, section 62J.692, 
152.20  subdivision 3, is amended to read: 
152.21     Subd. 3.  [APPLICATION PROCESS.] (a) A clinical medical 
152.22  education program conducted in Minnesota by a teaching 
152.23  institution to train physicians, doctor of pharmacy 
152.24  practitioners, dentists, or physician assistants is eligible for 
152.25  funds under subdivision 4 if the program: 
152.26     (1) is funded, in part, by patient care revenues; 
152.27     (2) occurs in patient care settings that face increased 
152.28  financial pressure as a result of competition with nonteaching 
152.29  patient care entities; and 
152.30     (3) emphasizes primary care or specialties that are in 
152.31  undersupply in Minnesota. 
152.32     (b) A clinical medical education program for advanced 
152.33  practice nursing is eligible for funds under subdivision 4 if 
152.34  the program meets the eligibility requirements in paragraph (a), 
152.35  clauses (1) to (3), and is sponsored by the University of 
152.36  Minnesota Academic Health Center, the Mayo Foundation, or 
153.1   institutions that are part of the Minnesota state colleges and 
153.2   universities system.  
153.3      (c) Applications must be submitted to the commissioner by a 
153.4   sponsoring institution on behalf of an eligible clinical medical 
153.5   education program and must be received by October 31 of each 
153.6   year for distribution in the following year.  An application for 
153.7   funds must contain the following information: 
153.8      (1) the official name and address of the sponsoring 
153.9   institution and the official name and site address of the 
153.10  clinical medical education programs on whose behalf the 
153.11  sponsoring institution is applying; 
153.12     (2) the name, title, and business address of those persons 
153.13  responsible for administering the funds; 
153.14     (3) for each clinical medical education program for which 
153.15  funds are being sought; the type and specialty orientation of 
153.16  trainees in the program; the name, site address, and medical 
153.17  assistance provider number of each training site used in the 
153.18  program; the total number of trainees at each training site; and 
153.19  the total number of eligible trainee FTEs at each site.  Only 
153.20  those training sites that host 0.5 FTE or more eligible trainees 
153.21  for a program may be included in the program's application; and 
153.22     (4) other supporting information the commissioner deems 
153.23  necessary to determine program eligibility based on the criteria 
153.24  in paragraph paragraphs (a) and (b) and to ensure the equitable 
153.25  distribution of funds.  
153.26     (c) (d) An application must include the information 
153.27  specified in clauses (1) to (3) for each clinical medical 
153.28  education program on an annual basis for three consecutive 
153.29  years.  After that time, an application must include the 
153.30  information specified in clauses (1) to (3) in the first year of 
153.31  each biennium:  
153.32     (1) audited clinical training costs per trainee for each 
153.33  clinical medical education program when available or estimates 
153.34  of clinical training costs based on audited financial data; 
153.35     (2) a description of current sources of funding for 
153.36  clinical medical education costs, including a description and 
154.1   dollar amount of all state and federal financial support, 
154.2   including Medicare direct and indirect payments; and 
154.3      (3) other revenue received for the purposes of clinical 
154.4   training.  
154.5      (d) (e) An applicant that does not provide information 
154.6   requested by the commissioner shall not be eligible for funds 
154.7   for the current funding cycle. 
154.8      Sec. 8.  Minnesota Statutes 2002, section 62J.692, 
154.9   subdivision 4, is amended to read: 
154.10     Subd. 4.  [DISTRIBUTION OF FUNDS.] (a) The commissioner 
154.11  shall annually distribute 90 percent of available medical 
154.12  education funds to all qualifying applicants based on the 
154.13  following criteria a distribution formula that reflects a 
154.14  summation of two factors:  
154.15     (1) total medical education funds available for 
154.16  distribution; an education factor, which is determined by the 
154.17  total number of eligible trainee FTEs and the total statewide 
154.18  average costs per trainee, by type of trainee, in each clinical 
154.19  medical education program; and 
154.20     (2) total number of eligible trainee FTEs in each clinical 
154.21  medical education program; and 
154.22     (3) the statewide average cost per trainee as determined by 
154.23  the application information provided in the first year of the 
154.24  biennium, by type of trainee, in each clinical medical education 
154.25  program. a public program volume factor, which is determined by 
154.26  the total volume of public program revenue received by each 
154.27  training site as a percentage of all public program revenue 
154.28  received by all training sites in the fund pool.  
154.29     In this formula, the education factor is weighted at 67 
154.30  percent and the public program volume factor is weighted at 33 
154.31  percent. 
154.32     Public program revenue for the distribution formula 
154.33  includes revenue from medical assistance, prepaid medical 
154.34  assistance, general assistance medical care, and prepaid general 
154.35  assistance medical care.  Training sites that receive no public 
154.36  program revenue are ineligible for funds available under this 
155.1   paragraph.  Total statewide average costs per trainee for 
155.2   medical residents is based on audited clinical training costs 
155.3   per trainee in primary care clinical medical education programs 
155.4   for medical residents.  Total statewide average costs per 
155.5   trainee for dental residents is based on audited clinical 
155.6   training costs per trainee in clinical medical education 
155.7   programs for dental students.  Total statewide average costs per 
155.8   trainee for pharmacy residents is based on audited clinical 
155.9   training costs per trainee in clinical medical education 
155.10  programs for pharmacy students. 
155.11     (b) The commissioner shall annually distribute ten percent 
155.12  of total available medical education funds to all qualifying 
155.13  applicants based on the percentage received by each applicant 
155.14  under paragraph (a).  These funds are to be used to offset 
155.15  clinical education costs at eligible clinical training sites 
155.16  based on criteria developed by the clinical medical education 
155.17  program.  Applicants may choose to distribute funds allocated 
155.18  under this paragraph based on the distribution formula described 
155.19  in paragraph (a).  
155.20     (c) Funds distributed shall not be used to displace current 
155.21  funding appropriations from federal or state sources.  
155.22     (c) (d) Funds shall be distributed to the sponsoring 
155.23  institutions indicating the amount to be distributed to each of 
155.24  the sponsor's clinical medical education programs based on the 
155.25  criteria in this subdivision and in accordance with the 
155.26  commissioner's approval letter.  Each clinical medical education 
155.27  program must distribute funds allocated under paragraph (a) to 
155.28  the training sites as specified in the commissioner's approval 
155.29  letter.  Sponsoring institutions, which are accredited through 
155.30  an organization recognized by the department of education or the 
155.31  Centers for Medicare and Medicaid Services, may contract 
155.32  directly with training sites to provide clinical training.  To 
155.33  ensure the quality of clinical training, those accredited 
155.34  sponsoring institutions must: 
155.35     (1) develop contracts specifying the terms, expectations, 
155.36  and outcomes of the clinical training conducted at sites; and 
156.1      (2) take necessary action if the contract requirements are 
156.2   not met.  Action may include the withholding of payments under 
156.3   this section or the removal of students from the site.  
156.4      (d) (e) Any funds not distributed in accordance with the 
156.5   commissioner's approval letter must be returned to the medical 
156.6   education and research fund within 30 days of receiving notice 
156.7   from the commissioner.  The commissioner shall distribute 
156.8   returned funds to the appropriate training sites in accordance 
156.9   with the commissioner's approval letter. 
156.10     (e) The commissioner shall distribute by June 30 of each 
156.11  year an amount equal to the funds transferred under section 
156.12  62J.694, subdivision 2a, paragraph (b), plus five percent 
156.13  interest to the University of Minnesota board of regents for the 
156.14  costs of the academic health center as specified under section 
156.15  62J.694, subdivision 2a, paragraph (a). 
156.16     Sec. 9.  Minnesota Statutes 2002, section 62J.692, 
156.17  subdivision 5, is amended to read: 
156.18     Subd. 5.  [REPORT.] (a) Sponsoring institutions receiving 
156.19  funds under this section must sign and submit a medical 
156.20  education grant verification report (GVR) to verify that the 
156.21  correct grant amount was forwarded to each eligible training 
156.22  site.  If the sponsoring institution fails to submit the GVR by 
156.23  the stated deadline, or to request and meet the deadline for an 
156.24  extension, the sponsoring institution is required to return the 
156.25  full amount of funds received to the commissioner within 30 days 
156.26  of receiving notice from the commissioner.  The commissioner 
156.27  shall distribute returned funds to the appropriate training 
156.28  sites in accordance with the commissioner's approval letter.  
156.29     (b) The reports must provide verification of the 
156.30  distribution of the funds and must include:  
156.31     (1) the total number of eligible trainee FTEs in each 
156.32  clinical medical education program; 
156.33     (2) the name of each funded program and, for each program, 
156.34  the dollar amount distributed to each training site; 
156.35     (3) documentation of any discrepancies between the initial 
156.36  grant distribution notice included in the commissioner's 
157.1   approval letter and the actual distribution; 
157.2      (4) a statement by the sponsoring institution describing 
157.3   the distribution of funds allocated under subdivision 4, 
157.4   paragraph (b), including information on which clinical training 
157.5   sites received funding and the rationale used for determining 
157.6   funding priorities; 
157.7      (5) a statement by the sponsoring institution stating that 
157.8   the completed grant verification report is valid and accurate; 
157.9   and 
157.10     (5) (6) other information the commissioner, with advice 
157.11  from the advisory committee, deems appropriate to evaluate the 
157.12  effectiveness of the use of funds for medical education.  
157.13     (c) By February 15 of each year, the commissioner, with 
157.14  advice from the advisory committee, shall provide an annual 
157.15  summary report to the legislature on the implementation of this 
157.16  section. 
157.17     Sec. 10.  Minnesota Statutes 2002, section 62J.692, 
157.18  subdivision 7, is amended to read: 
157.19     Subd. 7.  [TRANSFERS FROM THE COMMISSIONER OF HUMAN 
157.20  SERVICES.] (a) The amount transferred according to section 
157.21  256B.69, subdivision 5c, paragraph (a), clause (1), shall be 
157.22  distributed by the commissioner annually to clinical medical 
157.23  education programs that meet the qualifications of subdivision 3 
157.24  based on a distribution formula that reflects a summation of two 
157.25  factors: the formula in subdivision 4, paragraph (a). 
157.26     (1) an education factor, which is determined by the total 
157.27  number of eligible trainee FTEs and the total statewide average 
157.28  costs per trainee, by type of trainee, in each clinical medical 
157.29  education program; and 
157.30     (2) a public program volume factor, which is determined by 
157.31  the total volume of public program revenue received by each 
157.32  training site as a percentage of all public program revenue 
157.33  received by all training sites in the fund pool created under 
157.34  this subdivision.  
157.35     In this formula, the education factor shall be weighted at 
157.36  50 percent and the public program volume factor shall be 
158.1   weighted at 50 percent. 
158.2      Public program revenue for the distribution formula shall 
158.3   include revenue from medical assistance, prepaid medical 
158.4   assistance, general assistance medical care, and prepaid general 
158.5   assistance medical care.  Training sites that receive no public 
158.6   program revenue shall be ineligible for funds available under 
158.7   this paragraph. 
158.8      (b) Fifty percent of the amount transferred according to 
158.9   section 256B.69, subdivision 5c, paragraph (a), clause (2), 
158.10  shall be distributed by the commissioner to the University of 
158.11  Minnesota board of regents for the purposes described in 
158.12  sections 137.38 to 137.40.  Of the remaining amount transferred 
158.13  according to section 256B.69, subdivision 5c, paragraph (a), 
158.14  clause (2), 24 percent of the amount shall be distributed by the 
158.15  commissioner to the Hennepin County Medical Center for clinical 
158.16  medical education.  The remaining 26 percent of the amount 
158.17  transferred shall be distributed by the commissioner in 
158.18  accordance with subdivision 7a.  If the federal approval is not 
158.19  obtained for the matching funds under section 256B.69, 
158.20  subdivision 5c, paragraph (a), clause (2), 100 percent of the 
158.21  amount transferred under this paragraph shall be distributed by 
158.22  the commissioner to the University of Minnesota board of regents 
158.23  for the purposes described in sections 137.38 to 137.40.  
158.24     (c) The amount transferred according to section 256B.69, 
158.25  subdivision 5c, paragraph (a), clause (3), shall be distributed 
158.26  by the commissioner upon receipt to the University of Minnesota 
158.27  board of regents for the purposes of clinical graduate medical 
158.28  education. 
158.29     Sec. 11.  Minnesota Statutes 2002, section 62J.694, is 
158.30  amended by adding a subdivision to read: 
158.31     Subd. 5.  [EFFECTIVE DATE.] This section is only in effect 
158.32  if there are funds available in the medical education endowment 
158.33  fund.  
158.34     Sec. 12.  Minnesota Statutes 2002, section 62L.05, 
158.35  subdivision 4, is amended to read: 
158.36     Subd. 4.  [BENEFITS.] The medical services and supplies 
159.1   listed in this subdivision are the benefits that must be covered 
159.2   by the small employer plans described in subdivisions 2 and 3.  
159.3   Benefits under this subdivision may be provided through the 
159.4   managed care procedures practiced by health carriers:  
159.5      (1) inpatient and outpatient hospital services, excluding 
159.6   services provided for the diagnosis, care, or treatment of 
159.7   chemical dependency or a mental illness or condition, other than 
159.8   those conditions specified in clauses (10), (11), and (12).  The 
159.9   health care services required to be covered under this clause 
159.10  must also be covered if rendered in a nonhospital environment, 
159.11  on the same basis as coverage provided for those same treatments 
159.12  or services if rendered in a hospital, provided, however, that 
159.13  this sentence must not be interpreted as expanding the types or 
159.14  extent of services covered; 
159.15     (2) physician, chiropractor, and nurse practitioner 
159.16  services for the diagnosis or treatment of illnesses, injuries, 
159.17  or conditions; 
159.18     (3) diagnostic x-rays and laboratory tests; 
159.19     (4) ground transportation provided by a licensed ambulance 
159.20  service to the nearest facility qualified to treat the 
159.21  condition, or as otherwise required by the health carrier; 
159.22     (5) services of a home health agency if the services 
159.23  qualify as reimbursable services under Medicare; 
159.24     (6) services of a private duty registered nurse if 
159.25  medically necessary, as determined by the health carrier; 
159.26     (7) the rental or purchase, as appropriate, of durable 
159.27  medical equipment, other than eyeglasses and hearing aids, 
159.28  unless coverage is required under section 62Q.675; 
159.29     (8) child health supervision services up to age 18, as 
159.30  defined in section 62A.047; 
159.31     (9) maternity and prenatal care services, as defined in 
159.32  sections 62A.041 and 62A.047; 
159.33     (10) inpatient hospital and outpatient services for the 
159.34  diagnosis and treatment of certain mental illnesses or 
159.35  conditions, as defined by the International Classification of 
159.36  Diseases-Clinical Modification (ICD-9-CM), seventh edition 
160.1   (1990) and as classified as ICD-9 codes 295 to 299; 
160.2      (11) ten hours per year of outpatient mental health 
160.3   diagnosis or treatment for illnesses or conditions not described 
160.4   in clause (10); 
160.5      (12) 60 hours per year of outpatient treatment of chemical 
160.6   dependency; and 
160.7      (13) 50 percent of eligible charges for prescription drugs, 
160.8   up to a separate annual maximum out-of-pocket expense of $1,000 
160.9   per individual for prescription drugs, and 100 percent of 
160.10  eligible charges thereafter.  
160.11     <b>[EFFECTIVE DATE.]</b> This section is effective August 1, 2003, 
160.12  and applies to policies and plans issued or renewed to provide 
160.13  coverage to Minnesota residents on or after that date. 
160.14     Sec. 13.  Minnesota Statutes 2002, section 62Q.19, 
160.15  subdivision 2, is amended to read: 
160.16     Subd. 2.  [APPLICATION.] (a) Any provider may apply to the 
160.17  commissioner for designation as an essential community provider 
160.18  by submitting an application form developed by the 
160.19  commissioner.  Except as provided in paragraph 
160.20  paragraphs (d) and (e), applications must be accepted within two 
160.21  years after the effective date of the rules adopted by the 
160.22  commissioner to implement this section. 
160.23     (b) Each application submitted must be accompanied by an 
160.24  application fee in an amount determined by the commissioner.  
160.25  The fee shall be no more than what is needed to cover the 
160.26  administrative costs of processing the application. 
160.27     (c) The name, address, contact person, and the date by 
160.28  which the commissioner's decision is expected to be made shall 
160.29  be classified as public data under section 13.41.  All other 
160.30  information contained in the application form shall be 
160.31  classified as private data under section 13.41 until the 
160.32  application has been approved, approved as modified, or denied 
160.33  by the commissioner.  Once the decision has been made, all 
160.34  information shall be classified as public data unless the 
160.35  applicant designates and the commissioner determines that the 
160.36  information contains trade secret information. 
161.1      (d) The commissioner shall accept an application for 
161.2   designation as an essential community provider until June 30, 
161.3   2001, from: 
161.4      (1) one applicant that is a nonprofit community health care 
161.5   facility, certified as a medical assistance provider effective 
161.6   April 1, 1998, that provides culturally competent health care to 
161.7   an underserved Southeast Asian immigrant and refugee population 
161.8   residing in the immediate neighborhood of the facility; 
161.9      (2) one applicant that is a nonprofit home health care 
161.10  provider, certified as a Medicare and a medical assistance 
161.11  provider that provides culturally competent home health care 
161.12  services to a low-income culturally diverse population; 
161.13     (3) up to five applicants that are nonprofit community 
161.14  mental health centers certified as medical assistance providers 
161.15  that provide mental health services to children with serious 
161.16  emotional disturbance and their families or to adults with 
161.17  serious and persistent mental illness; and 
161.18     (4) one applicant that is a nonprofit provider certified as 
161.19  a medical assistance provider that provides mental health, child 
161.20  development, and family services to children with physical and 
161.21  mental health disorders and their families. 
161.22     (e) The commissioner shall accept an application for 
161.23  designation as an essential community provider until June 30, 
161.24  2003, from one applicant that is a nonprofit community clinic 
161.25  located in Hennepin county that provides health care to an 
161.26  underserved American Indian population and that is collaborating 
161.27  with other neighboring organizations on a community diabetes 
161.28  project and an immunization project. 
161.29     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
161.30  following final enactment. 
161.31     Sec. 14.  [62Q.675] [COMMUNICATION DEVICES; PERSONS 18 OR 
161.32  YOUNGER.] 
161.33     A health plan must cover communication aids or devices, 
161.34  including hearing aids, for individuals 18 years of age or 
161.35  younger for hearing loss due to functional congenital 
161.36  malformation of the ears that is not correctable by other 
162.1   covered procedures.  No special deductible, coinsurance, 
162.2   copayment, or other limitation on the coverage under this 
162.3   section that is not generally applicable to other coverages 
162.4   under the plan may be imposed. 
162.5      <b>[EFFECTIVE DATE.]</b> This section is effective August 1, 2003, 
162.6   and applies to policies and plans issued or renewed to provide 
162.7   coverage to Minnesota residents on or after that date. 
162.8      Sec. 15.  Minnesota Statutes 2002, section 144.1222, is 
162.9   amended by adding a subdivision to read: 
162.10     Subd. 1a.  [FEES.] All plans and specifications for public 
162.11  swimming pool and spa construction, installation, or alteration 
162.12  or requests for a variance that are submitted to the 
162.13  commissioner according to Minnesota Rules, part 4717.3975, shall 
162.14  be accompanied by the appropriate fees.  If the commissioner 
162.15  determines, upon review of the plans, that inadequate fees were 
162.16  paid, the necessary additional fees shall be paid before plan 
162.17  approval.  For purposes of determining fees, a project is 
162.18  defined as a proposal to construct or install a public pool, 
162.19  spa, special purpose pool, or wading pool and all associated 
162.20  water treatment equipment and drains, gutters, decks, water 
162.21  recreation features, spray pads, and those design and safety 
162.22  features that are within five feet of any pool or spa.  The 
162.23  commissioner shall charge the following fees for plan review and 
162.24  inspection of public pools and spas and for requests for 
162.25  variance from the public pool and spa rules:  
162.26     (1) each spa pool, $500; 
162.27     (2) projects valued at $250,000 or less, a minimum of $800 
162.28  plus:  
162.29     (i) for each slide, an additional $400; and 
162.30     (ii) for each spa pool, an additional $500; 
162.31     (3) projects valued at $250,000 or more, 0.5 percent of 
162.32  documented estimated project cost to a maximum fee of $10,000; 
162.33     (4) alterations to an existing pool without changing the 
162.34  size or configuration of the pool, $400; 
162.35     (5) removal or replacement of pool disinfection equipment 
162.36  only, $75; and 
163.1      (6) request for variance from the public pool and spa 
163.2   rules, $500. 
163.3      Sec. 16.  Minnesota Statutes 2002, section 144.125, is 
163.4   amended to read: 
163.5      144.125 [TESTS OF INFANTS FOR INBORN METABOLIC ERRORS 
163.6   HERITABLE AND CONGENITAL DISORDERS.] 
163.7      Subdivision 1.  [DUTY TO PERFORM TESTING.] It is the duty 
163.8   of (1) the administrative officer or other person in charge of 
163.9   each institution caring for infants 28 days or less of age, (2) 
163.10  the person required in pursuance of the provisions of section 
163.11  144.215, to register the birth of a child, or (3) the nurse 
163.12  midwife or midwife in attendance at the birth, to arrange to 
163.13  have administered to every infant or child in its care tests for 
163.14  inborn errors of metabolism in accordance with heritable and 
163.15  congenital disorders according to subdivision 2 and rules 
163.16  prescribed by the state commissioner of health.  In determining 
163.17  which tests must be administered, the commissioner shall take 
163.18  into consideration the adequacy of laboratory methods to detect 
163.19  the inborn metabolic error, the ability to treat or prevent 
163.20  medical conditions caused by the inborn metabolic error, and the 
163.21  severity of the medical conditions caused by the inborn 
163.22  metabolic error.  Testing and the recording and reporting of 
163.23  test results shall be performed at the times and in the manner 
163.24  prescribed by the commissioner of health.  The commissioner 
163.25  shall charge laboratory service fees so that the total of fees 
163.26  collected will approximate the costs of conducting the tests and 
163.27  implementing and maintaining a system to follow-up infants with 
163.28  inborn metabolic errors heritable or congenital disorders.  The 
163.29  laboratory service fee is $61 per specimen except for recipients 
163.30  of medical assistance, general assistance medical care, or 
163.31  MinnesotaCare in which the laboratory service fee is $21 per 
163.32  specimen.  Costs associated with capital expenditures and the 
163.33  development of new procedures may be prorated over a three-year 
163.34  period when calculating the amount of the fees. 
163.35     Subd. 2.  [DETERMINATION OF TESTS TO BE ADMINISTERED.] The 
163.36  commissioner shall periodically revise the list of tests to be 
164.1   administered for determining the presence of a heritable or 
164.2   congenital disorder.  Revisions to the list shall reflect 
164.3   advances in medical science, new and improved testing methods, 
164.4   or other factors that will improve the public health.  In 
164.5   determining whether a test must be administered, the 
164.6   commissioner shall take into consideration the adequacy of 
164.7   laboratory methods to detect the heritable or congenital 
164.8   disorder, the ability to treat or prevent medical conditions 
164.9   caused by the heritable or congenital disorder, and the severity 
164.10  of the medical conditions caused by the heritable or congenital 
164.11  disorder.  The list of tests to be performed may be revised if 
164.12  the changes are recommended by the advisory committee 
164.13  established under section 144.1255, approved by the 
164.14  commissioner, and published in the State Register.  The revision 
164.15  is exempt from the rulemaking requirements in chapter 14 and 
164.16  sections 14.385 and 14.386 do not apply.  
164.17     Subd. 3.  [OBJECTION OF PARENTS TO TEST.] If the parents of 
164.18  an infant object in writing to testing for heritable and 
164.19  congenital disorders as being in conflict with their personal 
164.20  beliefs or religious tenets and practice, the objection shall be 
164.21  recorded on a form that is signed by a parent or legal guardian 
164.22  and made part of the infant's medical record.  A written 
164.23  objection exempts an infant from the requirements of this 
164.24  section and section 144.128. 
164.25     Sec. 17.  [144.1255] [ADVISORY COMMITTEE ON HERITABLE AND 
164.26  CONGENITAL DISORDERS.] 
164.27     Subdivision 1.  [CREATION AND MEMBERSHIP.] (a) By July 1, 
164.28  2003, the commissioner of health shall appoint an advisory 
164.29  committee to provide advice and recommendations to the 
164.30  commissioner concerning tests and treatments for heritable and 
164.31  congenital disorders found in newborn children.  Membership of 
164.32  the committee shall include, but not be limited to, at least one 
164.33  member from each of the following representative groups:  
164.34     (1) parents and other consumers; 
164.35     (2) primary care providers; 
164.36     (3) clinicians and researchers specializing in newborn 
165.1   diseases and disorders; 
165.2      (4) genetic counselors; 
165.3      (5) birth hospital representatives; 
165.4      (6) newborn screening laboratory professionals; 
165.5      (7) nutritionists; and 
165.6      (8) other experts as needed representing related fields 
165.7   such as emerging technologies and health insurance. 
165.8      (b) The terms and removal of members are governed by 
165.9   section 15.059.  Members shall not receive per diems but shall 
165.10  be compensated for expenses.  Notwithstanding section 15.059, 
165.11  subdivision 5, the advisory committee does not expire. 
165.12     Subd. 2.  [FUNCTION AND OBJECTIVES.] The committee's 
165.13  activities include, but are not limited to:  
165.14     (1) collection of information on the efficacy and 
165.15  reliability of various tests for heritable and congenital 
165.16  disorders; 
165.17     (2) collection of information on the availability and 
165.18  efficacy of treatments for heritable and congenital disorders; 
165.19     (3) collection of information on the severity of medical 
165.20  conditions caused by heritable and congenital disorders; 
165.21     (4) discussion and assessment of the benefits of performing 
165.22  tests for heritable or congenital disorders as compared to the 
165.23  costs, treatment limitations, or other potential disadvantages 
165.24  of requiring the tests; 
165.25     (5) discussion and assessment of ethical considerations 
165.26  surrounding the testing, treatment, and handling of data and 
165.27  specimens generated by the testing requirements of sections 
165.28  144.125 to 144.128; and 
165.29     (6) providing advice and recommendations to the 
165.30  commissioner concerning tests and treatments for heritable and 
165.31  congenital disorders found in newborn children. 
165.32     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
165.33  following final enactment. 
165.34     Sec. 18.  Minnesota Statutes 2002, section 144.128, is 
165.35  amended to read: 
165.36     144.128 [TREATMENT FOR POSITIVE DIAGNOSIS, REGISTRY OF 
166.1   CASES COMMISSIONER'S DUTIES.] 
166.2      The commissioner shall: 
166.3      (1) make arrangements referrals for the necessary treatment 
166.4   of diagnosed cases of hemoglobinopathy, phenylketonuria, and 
166.5   other inborn errors of metabolism heritable or congenital 
166.6   disorders when treatment is indicated and the family is 
166.7   uninsured and, because of a lack of available income, is unable 
166.8   to pay the cost of the treatment; 
166.9      (2) maintain a registry of the cases of hemoglobinopathy, 
166.10  phenylketonuria, and other inborn errors of metabolism heritable 
166.11  and congenital disorders detected by the screening program for 
166.12  the purpose of follow-up services; and 
166.13     (3) adopt rules to carry out section 144.126 and this 
166.14  section sections 144.125 to 144.128. 
166.15     Sec. 19.  Minnesota Statutes 2002, section 144.1488, 
166.16  subdivision 4, is amended to read: 
166.17     Subd. 4.  [ELIGIBLE HEALTH PROFESSIONALS.] (a) To be 
166.18  eligible to apply to the commissioner for the loan repayment 
166.19  program, health professionals must be citizens or nationals of 
166.20  the United States, must not have any unserved obligations for 
166.21  service to a federal, state, or local government, or other 
166.22  entity, must have a current and unrestricted Minnesota license 
166.23  to practice, and must be ready to begin full-time clinical 
166.24  practice upon signing a contract for obligated service. 
166.25     (b) Eligible providers are those specified by the federal 
166.26  Bureau of Primary Health Care Health Professionals in the policy 
166.27  information notice for the state's current federal grant 
166.28  application.  A health professional selected for participation 
166.29  is not eligible for loan repayment until the health professional 
166.30  has an employment agreement or contract with an eligible loan 
166.31  repayment site and has signed a contract for obligated service 
166.32  with the commissioner. 
166.33     Sec. 20.  Minnesota Statutes 2002, section 144.1491, 
166.34  subdivision 1, is amended to read: 
166.35     Subdivision 1.  [PENALTIES FOR BREACH OF CONTRACT.] A 
166.36  program participant who fails to complete two the required years 
167.1   of obligated service shall repay the amount paid, as well as a 
167.2   financial penalty based upon the length of the service 
167.3   obligation not fulfilled.  If the participant has served at 
167.4   least one year, the financial penalty is the number of unserved 
167.5   months multiplied by $1,000.  If the participant has served less 
167.6   than one year, the financial penalty is the total number of 
167.7   obligated months multiplied by $1,000 specified by the federal 
167.8   Bureau of Health Professionals in the policy information notice 
167.9   for the state's current federal grant application.  The 
167.10  commissioner shall report to the appropriate health-related 
167.11  licensing board a participant who fails to complete the service 
167.12  obligation and fails to repay the amount paid or fails to pay 
167.13  any financial penalty owed under this subdivision. 
167.14     Sec. 21.  [144.1501] [HEALTH PROFESSIONAL EDUCATION LOAN 
167.15  FORGIVENESS PROGRAM.] 
167.16     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
167.17  section, the following definitions apply.  
167.18     (b) "Designated rural area" means:  
167.19     (1) an area in Minnesota outside the counties of Anoka, 
167.20  Carver, Dakota, Hennepin, Ramsey, Scott, and Washington, 
167.21  excluding the cities of Duluth, Mankato, Moorhead, Rochester, 
167.22  and St. Cloud; or 
167.23     (2) a municipal corporation, as defined under section 
167.24  471.634, that is physically located, in whole or in part, in an 
167.25  area defined as a designated rural area under clause (1).  
167.26     (c) "Emergency circumstances" means those conditions that 
167.27  make it impossible for the participant to fulfill the service 
167.28  commitment, including death, total and permanent disability, or 
167.29  temporary disability lasting more than two years. 
167.30     (d) "Medical resident" means an individual participating in 
167.31  a medical residency in family practice, internal medicine, 
167.32  obstetrics and gynecology, pediatrics, or psychiatry.  
167.33     (e) "Midlevel practitioner" means a nurse practitioner, 
167.34  nurse-midwife, nurse anesthetist, advanced clinical nurse 
167.35  specialist, or physician assistant.  
167.36     (f) "Nurse" means an individual who has completed training 
168.1   and received all licensing or certification necessary to perform 
168.2   duties as a licensed practical nurse or registered nurse.  
168.3      (g) "Nurse-midwife" means a registered nurse who has 
168.4   graduated from a program of study designed to prepare registered 
168.5   nurses for advanced practice as nurse-midwives.  
168.6      (h) "Nurse practitioner" means a registered nurse who has 
168.7   graduated from a program of study designed to prepare registered 
168.8   nurses for advanced practice as nurse practitioners.  
168.9      (i) "Physician" means an individual who is licensed to 
168.10  practice medicine in the areas of family practice, internal 
168.11  medicine, obstetrics and gynecology, pediatrics, or psychiatry.  
168.12     (j) "Physician assistant" means a person registered under 
168.13  chapter 147A.  
168.14     (k) "Qualified educational loan" means a government, 
168.15  commercial, or foundation loan for actual costs paid for 
168.16  tuition, reasonable education expenses, and reasonable living 
168.17  expenses related to the graduate or undergraduate education of a 
168.18  health care professional.  
168.19     (l) "Underserved urban community" means a Minnesota urban 
168.20  area or population included in the list of designated primary 
168.21  medical care health professional shortage areas (HPSAs), 
168.22  medically underserved areas (MUAs), or medically underserved 
168.23  populations (MUPs) maintained and updated by the United States 
168.24  Department of Health and Human Services.  
168.25     Subd. 2.  [CREATION OF ACCOUNT.] A health professional 
168.26  education loan forgiveness program account is established.  The 
168.27  commissioner of health shall use money from the account to 
168.28  establish a loan forgiveness program for medical residents 
168.29  agreeing to practice in designated rural areas or underserved 
168.30  urban communities, for midlevel practitioners agreeing to 
168.31  practice in designated rural areas, and for nurses who agree to 
168.32  practice in a Minnesota nursing home or intermediate care 
168.33  facility for persons with mental retardation or related 
168.34  conditions.  Appropriations made to the account do not cancel 
168.35  and are available until expended, except that at the end of each 
168.36  biennium, any remaining balance in the account that is not 
169.1   committed by contract and not needed to fulfill existing 
169.2   obligations shall cancel to the fund. 
169.3      Subd. 3.  [ELIGIBILITY.] (a) To be eligible to participate 
169.4   in the loan forgiveness program, an individual must: 
169.5      (1) be a medical resident or be enrolled in a midlevel 
169.6   practitioner, registered nurse, or a licensed practical nurse 
169.7   training program; and 
169.8      (2) submit an application to the commissioner of health.  
169.9      (b) An applicant selected to participate must sign a 
169.10  contract to agree to serve a minimum three-year full-time 
169.11  service obligation according to subdivision 2, which shall begin 
169.12  no later than March 31 following completion of required training.
169.13     Subd. 4.  [LOAN FORGIVENESS.] The commissioner of health 
169.14  may select applicants each year for participation in the loan 
169.15  forgiveness program, within the limits of available funding.  
169.16  The commissioner shall distribute available funds for loan 
169.17  forgiveness proportionally among the eligible professions 
169.18  according to the vacancy rate for each profession in the 
169.19  required geographic area or facility type specified in 
169.20  subdivision 2.  The commissioner shall allocate funds for 
169.21  physician loan forgiveness so that 75 percent of the funds 
169.22  available are used for rural physician loan forgiveness and 25 
169.23  percent of the funds available are used for underserved urban 
169.24  communities loan forgiveness.  If the commissioner does not 
169.25  receive enough qualified applicants each year to use the entire 
169.26  allocation of funds for urban underserved communities, the 
169.27  remaining funds may be allocated for rural physician loan 
169.28  forgiveness.  Applicants are responsible for securing their own 
169.29  qualified educational loans.  The commissioner shall select 
169.30  participants based on their suitability for practice serving the 
169.31  required geographic area or facility type specified in 
169.32  subdivision 2, as indicated by experience or training.  The 
169.33  commissioner shall give preference to applicants closest to 
169.34  completing their training.  For each year that a participant 
169.35  meets the service obligation required under subdivision 3, up to 
169.36  a maximum of four years, the commissioner shall make annual 
170.1   disbursements directly to the participant equivalent to 15 
170.2   percent of the average educational debt for indebted graduates 
170.3   in their profession in the year closest to the applicant's 
170.4   selection for which information is available, not to exceed the 
170.5   balance of the participant's qualifying educational loans.  
170.6   Before receiving loan repayment disbursements and as requested, 
170.7   the participant must complete and return to the commissioner an 
170.8   affidavit of practice form provided by the commissioner 
170.9   verifying that the participant is practicing as required under 
170.10  subdivisions 2 and 3.  The participant must provide the 
170.11  commissioner with verification that the full amount of loan 
170.12  repayment disbursement received by the participant has been 
170.13  applied toward the designated loans.  After each disbursement, 
170.14  verification must be received by the commissioner and approved 
170.15  before the next loan repayment disbursement is made.  
170.16  Participants who move their practice remain eligible for loan 
170.17  repayment as long as they practice as required under subdivision 
170.18  2.  
170.19     Subd. 5.  [PENALTY FOR NONFULFILLMENT.] If a participant 
170.20  does not fulfill the required minimum commitment of service 
170.21  according to subdivision 3, the commissioner of health shall 
170.22  collect from the participant the total amount paid to the 
170.23  participant under the loan forgiveness program plus interest at 
170.24  a rate established according to section 270.75.  The 
170.25  commissioner shall deposit the money collected in the health 
170.26  care access fund to be credited to the health professional 
170.27  education loan forgiveness program account established in 
170.28  subdivision 2.  The commissioner shall allow waivers of all or 
170.29  part of the money owed the commissioner as a result of a 
170.30  nonfulfillment penalty if emergency circumstances prevented 
170.31  fulfillment of the minimum service commitment.  
170.32     Subd. 6.  [RULES.] The commissioner may adopt rules to 
170.33  implement this section.  
170.34     Sec. 22.  Minnesota Statutes 2002, section 144.1502, 
170.35  subdivision 4, is amended to read: 
170.36     Subd. 4.  [LOAN FORGIVENESS.] The commissioner of health 
171.1   may accept up to 14 applicants per each year for participation 
171.2   in the loan forgiveness program, within the limits of available 
171.3   funding.  Applicants are responsible for securing their own 
171.4   loans.  The commissioner shall select participants based on 
171.5   their suitability for practice serving public program patients, 
171.6   as indicated by experience or training.  The commissioner shall 
171.7   give preference to applicants who have attended a Minnesota 
171.8   dentistry educational institution and to applicants closest to 
171.9   completing their training.  For each year that a participant 
171.10  meets the service obligation required under subdivision 3, up to 
171.11  a maximum of four years, the commissioner shall make annual 
171.12  disbursements directly to the participant equivalent to $10,000 
171.13  per year of service, not to exceed $40,000 15 percent of the 
171.14  average educational debt for indebted dental school graduates in 
171.15  the year closest to the applicant's selection for which 
171.16  information is available or the balance of the qualifying 
171.17  educational loans, whichever is less.  Before receiving loan 
171.18  repayment disbursements and as requested, the participant must 
171.19  complete and return to the commissioner an affidavit of practice 
171.20  form provided by the commissioner verifying that the participant 
171.21  is practicing as required under subdivision 3.  The participant 
171.22  must provide the commissioner with verification that the full 
171.23  amount of loan repayment disbursement received by the 
171.24  participant has been applied toward the designated loans.  After 
171.25  each disbursement, verification must be received by the 
171.26  commissioner and approved before the next loan repayment 
171.27  disbursement is made.  Participants who move their practice 
171.28  remain eligible for loan repayment as long as they practice as 
171.29  required under subdivision 3. 
171.30     Sec. 23.  Minnesota Statutes 2002, section 144.35, is 
171.31  amended to read: 
171.32     144.35 [POLLUTION OF WATER.] 
171.33     (a) No sewage or other matter that will impair the 
171.34  healthfulness of water shall be deposited where it will fall or, 
171.35  drain, or leach into any pond or, stream, or groundwater used as 
171.36  a source of water supply for domestic use.  The commissioner 
172.1   shall have general charge of all springs, wells, ponds, and 
172.2   streams so used and take all necessary and proper steps to 
172.3   preserve the same from such pollution as may endanger the public 
172.4   health.  In case of violation of any of the provisions of this 
172.5   section, the commissioner may, with or without a hearing, order 
172.6   any person to desist from causing such pollution and to comply 
172.7   with such direction as the commissioner may deem proper and 
172.8   expedient in the premises.  Such order shall be served forthwith 
172.9   upon the person found to have violated such provisions. 
172.10     (b) For purposes of enforcing this section, the 
172.11  commissioner has access to any record maintained under section 
172.12  18B.37, subdivision 2.  Section 18B.37, subdivision 5, applies 
172.13  to the inspection, classification, and release of the records by 
172.14  the commissioner, except that the commissioner may release 
172.15  information to a licensed health care provider for the limited 
172.16  purpose of determining appropriate medical care for an 
172.17  individual who may have been exposed to a pesticide or for 
172.18  evaluating a possible public health threat.  A health care 
172.19  provider who receives this information shall maintain the 
172.20  information in accordance with chapter 13 and the information 
172.21  must not be disclosed by the provider, except for the purposes 
172.22  described in this paragraph.  A health care provider who 
172.23  violates this requirement is subject to the remedies and 
172.24  penalties in sections 13.08 and 13.09. 
172.25     Sec. 24.  Minnesota Statutes 2002, section 144.395, is 
172.26  amended by adding a subdivision to read: 
172.27     Subd. 4.  [EFFECTIVE DATE.] This section is only in effect 
172.28  if there are funds available in the tobacco use prevention and 
172.29  local public health endowment fund.  
172.30     Sec. 25.  Minnesota Statutes 2002, section 144.396, 
172.31  subdivision 7, is amended to read: 
172.32     Subd. 7.  [LOCAL PUBLIC HEALTH PROMOTION AND PROTECTION.] 
172.33  The commissioner shall distribute the funds available under 
172.34  section 144.395, subdivision 2, paragraph (c), clause 
172.35  (3) appropriated for the purpose of local health promotion and 
172.36  protection activities to community health boards for local 
173.1   health promotion and protection activities for local health 
173.2   initiatives other than tobacco prevention aimed at high risk 
173.3   health behaviors among youth.  The commissioner shall distribute 
173.4   these funds to the community health boards based on demographics 
173.5   and other need-based factors relating to health. 
173.6      Sec. 26.  Minnesota Statutes 2002, section 144.396, 
173.7   subdivision 11, is amended to read: 
173.8      Subd. 11.  [AUDITS.] The legislative auditor shall may 
173.9   audit tobacco use prevention and local public health endowment 
173.10  fund expenditures to ensure that the money is spent for tobacco 
173.11  use prevention measures and public health initiatives.  
173.12     Sec. 27.  Minnesota Statutes 2002, section 144.396, 
173.13  subdivision 12, is amended to read: 
173.14     Subd. 12.  [ENDOWMENT FUND FUNDS NOT TO SUPPLANT EXISTING 
173.15  FUNDING.] Appropriations from the tobacco use prevention and 
173.16  local public health endowment fund Funds appropriated to the 
173.17  statewide tobacco prevention grants, local tobacco prevention 
173.18  grants, or the local public health promotion and prevention must 
173.19  not be used as a substitute for traditional sources of funding 
173.20  tobacco use prevention activities or public health initiatives.  
173.21  Any local unit of government receiving money under this section 
173.22  must ensure that existing local financial efforts remain in 
173.23  place. 
173.24     Sec. 28.  Minnesota Statutes 2002, section 144.414, 
173.25  subdivision 3, is amended to read: 
173.26     Subd. 3.  [HEALTH CARE FACILITIES AND CLINICS.] (a) Smoking 
173.27  is prohibited in any area of a hospital, health care clinic, 
173.28  doctor's office, or other health care-related facility, other 
173.29  than a nursing home, boarding care facility, or licensed 
173.30  residential facility, except as allowed in this subdivision.  
173.31     (b) Smoking by patients in a chemical dependency treatment 
173.32  program or mental health program may be allowed in a separated 
173.33  well-ventilated area pursuant to a policy established by the 
173.34  administrator of the program that identifies circumstances in 
173.35  which prohibiting smoking would interfere with the treatment of 
173.36  persons recovering from chemical dependency or mental illness.  
174.1      (c) Smoking by participants in peer reviewed scientific 
174.2   studies related to the health effects of smoking may be allowed 
174.3   in a separated room ventilated at a rate of 60 cubic feet per 
174.4   minute per person pursuant to a policy that is approved by the 
174.5   commissioner and is established by the administrator of the 
174.6   program to minimize exposure of nonsmokers to smoke.  
174.7      <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2004.
174.8      Sec. 29.  Minnesota Statutes 2002, section 144.99, 
174.9   subdivision 1, is amended to read: 
174.10     Subdivision 1.  [REMEDIES AVAILABLE.] The provisions of 
174.11  chapters 103I and 157 and sections 62J.18; 62J.23; 115.71 to 
174.12  115.77; 144.12, subdivision 1, paragraphs (1), (2), (5), (6), 
174.13  (10), (12), (13), (14), and (15); 144.1201 to 144.1204; 144.121; 
174.14  144.1222; 144.35; 144.381 to 144.385; 144.411 to 144.417; 
174.15  144.495; 144.71 to 144.74; 144.9501 to 144.9509; 144.992; 326.37 
174.16  to 326.45; 326.57 to 326.785; 327.10 to 327.131; and 327.14 to 
174.17  327.28 and all rules, orders, stipulation agreements, 
174.18  settlements, compliance agreements, licenses, registrations, 
174.19  certificates, and permits adopted or issued by the department or 
174.20  under any other law now in force or later enacted for the 
174.21  preservation of public health may, in addition to provisions in 
174.22  other statutes, be enforced under this section. 
174.23     Sec. 30.  Minnesota Statutes 2002, section 144E.29, is 
174.24  amended to read: 
174.25     144E.29 [FEES.] 
174.26     (a) The board shall charge the following fees: 
174.27     (1) initial application for and renewal of an ambulance 
174.28  service license, $150 $200; 
174.29     (2) each ambulance operated by a licensee, $96 $125.  The 
174.30  licensee shall pay an additional $96 $125 fee for the full 
174.31  licensing period or $4 $10 per month for any fraction of the 
174.32  period for each ambulance added to the ambulance service during 
174.33  the licensing period; 
174.34     (3) initial application for and renewal of approval for a 
174.35  training program, $100 $150; and 
174.36     (4) duplicate of an original license, certification, or 
175.1   approval, $25.  
175.2      (b) With the exception of paragraph (a), clause (4), all 
175.3   fees are for a two-year period.  All fees are nonrefundable. 
175.4      (c) Fees collected by the board shall be deposited as 
175.5   nondedicated receipts in the general fund. 
175.6      Sec. 31.  Minnesota Statutes 2002, section 144E.50, 
175.7   subdivision 5, is amended to read: 
175.8      Subd. 5.  [DISTRIBUTION.] Money from the fund shall be 
175.9   distributed according to this subdivision.  Ninety-three and 
175.10  one-third Ninety-five percent of the fund shall be distributed 
175.11  annually on a contract for services basis with each of the eight 
175.12  regional emergency medical services systems designated by the 
175.13  board.  The systems shall be governed by a body consisting of 
175.14  appointed representatives from each of the counties in that 
175.15  region and shall also include representatives from emergency 
175.16  medical services organizations.  The board shall contract with a 
175.17  regional entity only if the contract proposal satisfactorily 
175.18  addresses proposed emergency medical services activities in the 
175.19  following areas:  personnel training, transportation 
175.20  coordination, public safety agency cooperation, communications 
175.21  systems maintenance and development, public involvement, health 
175.22  care facilities involvement, and system management.  If each of 
175.23  the regional emergency medical services systems submits a 
175.24  satisfactory contract proposal, then this part of the fund shall 
175.25  be distributed evenly among the regions.  If one or more of the 
175.26  regions does not contract for the full amount of its even share 
175.27  or if its proposal is unsatisfactory, then the board may 
175.28  reallocate the unused funds to the remaining regions on a pro 
175.29  rata basis.  Six and two-thirds Five percent of the fund shall 
175.30  be used by the board to support regionwide reporting systems and 
175.31  to provide other regional administration and technical 
175.32  assistance. 
175.33     Sec. 32.  Minnesota Statutes 2002, section 145.412, is 
175.34  amended by adding a subdivision to read: 
175.35     Subd. 5.  [CONTRACEPTION INFORMATION.] Before an abortion 
175.36  is performed, a woman shall be offered information on all 
176.1   FDA-approved methods of contraception including natural family 
176.2   planning. 
176.3      Sec. 33.  Minnesota Statutes 2002, section 147A.08, is 
176.4   amended to read: 
176.5      147A.08 [EXEMPTIONS.] 
176.6      (a) This chapter does not apply to, control, prevent, or 
176.7   restrict the practice, service, or activities of persons listed 
176.8   in section 147.09, clauses (1) to (6) and (8) to (13), persons 
176.9   regulated under section 214.01, subdivision 2, or persons 
176.10  defined in section 144.1495 144.1501, subdivision 1, 
176.11  paragraphs (a) to (d) (e), (g), and (h). 
176.12     (b) Nothing in this chapter shall be construed to require 
176.13  registration of: 
176.14     (1) a physician assistant student enrolled in a physician 
176.15  assistant or surgeon assistant educational program accredited by 
176.16  the Committee on Allied Health Education and Accreditation or by 
176.17  its successor agency approved by the board; 
176.18     (2) a physician assistant employed in the service of the 
176.19  federal government while performing duties incident to that 
176.20  employment; or 
176.21     (3) technicians, other assistants, or employees of 
176.22  physicians who perform delegated tasks in the office of a 
176.23  physician but who do not identify themselves as a physician 
176.24  assistant. 
176.25     Sec. 34.  Minnesota Statutes 2002, section 148.5194, 
176.26  subdivision 1, is amended to read: 
176.27     Subdivision 1.  [FEE PRORATION.] The commissioner shall 
176.28  prorate the registration fee for clinical fellowship, temporary, 
176.29  and first time registrants according to the number of months 
176.30  that have elapsed between the date registration is issued and 
176.31  the date registration expires or must be renewed under section 
176.32  148.5191, subdivision 4.  
176.33     Sec. 35.  Minnesota Statutes 2002, section 148.5194, 
176.34  subdivision 2, is amended to read: 
176.35     Subd. 2.  [BIENNIAL REGISTRATION FEE.] The fee for initial 
176.36  registration and biennial registration, clinical fellowship 
177.1   registration, temporary registration, or renewal is $200.  
177.2      Sec. 36.  Minnesota Statutes 2002, section 148.5194, 
177.3   subdivision 3, is amended to read: 
177.4      Subd. 3.  [BIENNIAL REGISTRATION FEE FOR DUAL 
177.5   REGISTRATION.] The fee for initial registration and biennial 
177.6   registration, clinical fellowship registration, temporary 
177.7   registration, or renewal is $200.  
177.8      Sec. 37.  Minnesota Statutes 2002, section 148.5194, is 
177.9   amended by adding a subdivision to read: 
177.10     Subd. 6.  [VERIFICATION OF CREDENTIAL.] The fee for written 
177.11  verification of credentialed status is $25. 
177.12     Sec. 38.  Minnesota Statutes 2002, section 148.6445, 
177.13  subdivision 7, is amended to read: 
177.14     Subd. 7.  [CERTIFICATION VERIFICATION TO OTHER STATES.] The 
177.15  fee for certification verification of licensure to other states 
177.16  is $25. 
177.17     Sec. 39.  Minnesota Statutes 2002, section 153A.17, is 
177.18  amended to read: 
177.19     153A.17 [EXPENSES; FEES.] 
177.20     The expenses for administering the certification 
177.21  requirements including the complaint handling system for hearing 
177.22  aid dispensers in sections 153A.14 and 153A.15 and the consumer 
177.23  information center under section 153A.18 must be paid from 
177.24  initial application and examination fees, renewal fees, 
177.25  penalties, and fines.  All fees are nonrefundable.  The 
177.26  certificate application fee is $165 for audiologists registered 
177.27  under section 148.511 and $490 for all others $350, the 
177.28  examination fee is $200 $250 for the written portion and 
177.29  $200 $250 for the practical portion each time one or the other 
177.30  is taken, and the trainee application fee 
177.31  is $100 $200.  Notwithstanding the policy set forth in section 
177.32  16A.1285, subdivision 2, a surcharge of $165 for audiologists 
177.33  registered under section 148.511 and $330 for all others shall 
177.34  be paid at the time of application or renewal until June 30, 
177.35  2003, to recover the commissioner's accumulated direct 
177.36  expenditures for administering the requirements of this 
178.1   chapter.  The penalty fee for late submission of a renewal 
178.2   application is $200.  The fee for verification of certification 
178.3   to other jurisdictions or entities is $25.  All fees, penalties, 
178.4   and fines received must be deposited in the state government 
178.5   special revenue fund.  The commissioner may prorate the 
178.6   certification fee for new applicants based on the number of 
178.7   quarters remaining in the annual certification period. 
178.8      Sec. 40.  [246.0141] [TOBACCO USE PROHIBITED.] 
178.9      No patient, staff, guest, or visitor on the grounds or in a 
178.10  state regional treatment center, the Minnesota security 
178.11  hospital, the Minnesota sex offender program, or the Minnesota 
178.12  extended treatment options program may possess or use tobacco or 
178.13  a tobacco related device.  For the purposes of this section, 
178.14  "tobacco" and "tobacco related device" have the meanings given 
178.15  in section 609.685, subdivision 1.  This section does not 
178.16  prohibit the possession or use of tobacco or a tobacco related 
178.17  device by an adult as part of a traditional Indian spiritual or 
178.18  cultural ceremony.  For purposes of this section, an Indian is a 
178.19  person who is a member of an Indian tribe as defined in section 
178.20  260.755, subdivision 12.  
178.21     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2004.
178.22     Sec. 41.  Minnesota Statutes 2002, section 326.42, is 
178.23  amended to read: 
178.24     326.42 [APPLICATIONS, FEES.] 
178.25     Subdivision 1.  [APPLICATION.] Applications for plumber's 
178.26  license shall be made to the state commissioner of health, with 
178.27  fee.  Unless the applicant is entitled to a renewal, the 
178.28  applicant shall be licensed by the state commissioner of health 
178.29  only after passing a satisfactory examination by the examiners 
178.30  showing fitness.  Examination fees for both journeyman and 
178.31  master plumbers shall be in an amount prescribed by the state 
178.32  commissioner of health pursuant to section 144.122.  Upon being 
178.33  notified that of having successfully passed the examination for 
178.34  original license the applicant shall submit an application, with 
178.35  the license fee herein provided.  License fees shall be in an 
178.36  amount prescribed by the state commissioner of health pursuant 
179.1   to section 144.122.  Licenses shall expire and be renewed as 
179.2   prescribed by the commissioner pursuant to section 144.122. 
179.3      Subd. 2.  [FEES.] Plumbing system plans and specifications 
179.4   that are submitted to the commissioner for review shall be 
179.5   accompanied by the appropriate plan examination fees.  If the 
179.6   commissioner determines, upon review of the plans, that 
179.7   inadequate fees were paid, the necessary additional fees shall 
179.8   be paid prior to plan approval.  The commissioner shall charge 
179.9   the following fees for plan reviews and audits of plumbing 
179.10  installations for public, commercial, and industrial buildings:  
179.11     (1) systems with both water distribution and drain, waste, 
179.12  and vent systems and having:  
179.13     (i) 25 or fewer drainage fixture units, $150; 
179.14     (ii) 26 to 50 drainage fixture units, $250; 
179.15     (iii) 51 to 150 drainage fixture units, $350; 
179.16     (iv) 151 to 249 drainage fixture units, $500; 
179.17     (v) 250 or more drainage fixture units, $3 per drainage 
179.18  fixture unit to a maximum of $4,000; and 
179.19     (vi) interceptors, separators, or catch basins, $70 per 
179.20  interceptor, separator, or catch basin; 
179.21     (2) building sewer service only, $150; 
179.22     (3) building water service only, $150; 
179.23     (4) building water distribution system only, no drainage 
179.24  system, $5 per supply fixture unit or $150, whichever is 
179.25  greater; 
179.26     (5) storm drainage system, a minimum fee of $150 or: 
179.27     (i) $50 per drain opening, up to a maximum of $500; and 
179.28     (ii) $70 per interceptor, separator, or catch basin; 
179.29     (6) manufactured home park or campground, 1 to 25 sites, 
179.30  $300; 
179.31     (7) manufactured home park or campground, 26 to 50 sites, 
179.32  $350; 
179.33     (8) manufactured home park or campground, 51 to 125 sites, 
179.34  $400; 
179.35     (9) manufactured home park or campground, more than 125 
179.36  sites, $500; 
180.1      (10) accelerated review, double the regular fee, one-half 
180.2   to be refunded if no response from the commissioner within 15 
180.3   business days; and 
180.4      (11) revision to previously reviewed or incomplete plans: 
180.5      (i) review of plans for which commissioner has issued two 
180.6   or more requests for additional information, per review, $100 or 
180.7   ten percent of the original fee, whichever is greater; 
180.8      (ii) proposer-requested revision with no increase in 
180.9   project scope, $50 or ten percent of original fee, whichever is 
180.10  greater; and 
180.11     (iii) proposer-requested revision with an increase in 
180.12  project scope, $50 plus the difference between the original 
180.13  project fee and the revised project fee. 
180.14     Sec. 42.  [AUTHORITY TO COLLECT CERTAIN FEES SUSPENDED.] 
180.15     (a) The commissioner's authority to collect the certificate 
180.16  application fee from hearing instrument dispensers under 
180.17  Minnesota Statutes, section 153A.17, is suspended for certified 
180.18  hearing instrument dispensers renewing certification in fiscal 
180.19  year 2004. 
180.20     (b) The commissioner's authority to collect the license 
180.21  renewal fee from occupational therapy practitioners under 
180.22  Minnesota Statutes, section 148.6445, subdivision 2, is 
180.23  suspended for fiscal years 2004 and 2005. 
180.24     Sec. 43.  [REVISOR'S INSTRUCTION.] 
180.25     (a) The revisor of statutes shall delete the reference to 
180.26  "144.1495" in Minnesota Statutes, section 62Q.145, and insert 
180.27  "144.1501." 
180.28     (b) For sections in Minnesota Statutes and Minnesota Rules 
180.29  affected by the repealed sections in this article, the revisor 
180.30  shall delete internal cross-references where appropriate and 
180.31  make changes necessary to correct the punctuation, grammar, or 
180.32  structure of the remaining text and preserve its meaning. 
180.33     Sec. 44.  [REPEALER.] 
180.34     (a) Minnesota Statutes 2002, sections 62J.15; 62J.152; 
180.35  62J.451; 62J.452; 144.126; 144.1494; 144.1495; 144.1496; 
180.36  144.1497; 144A.36; 144A.38; 148.5194, subdivision 3a; and 
181.1   148.6445, subdivision 9, are repealed.  
181.2      (b) Minnesota Rules, parts 4763.0100; 4763.0110; 4763.0125; 
181.3   4763.0135; 4763.0140; 4763.0150; 4763.0160; 4763.0170; 
181.4   4763.0180; 4763.0190; 4763.0205; 4763.0215; 4763.0220; 
181.5   4763.0230; 4763.0240; 4763.0250, are repealed. 
181.6                              ARTICLE 4 
181.7                            LONG-TERM CARE 
181.8      Section 1.  Minnesota Statutes 2002, section 144A.071, 
181.9   subdivision 4c, as added by Laws 2003, chapter 16, section 1, is 
181.10  amended to read: 
181.11     Subd. 4c.  [EXCEPTIONS FOR REPLACEMENT BEDS AFTER JUNE 30, 
181.12  2003.] (a) The commissioner of health, in coordination with the 
181.13  commissioner of human services, may approve the renovation, 
181.14  replacement, upgrading, or relocation of a nursing home or 
181.15  boarding care home, under the following conditions: 
181.16     (1) to license and certify an 80-bed city-owned facility in 
181.17  Nicollet county to be constructed on the site of a new 
181.18  city-owned hospital to replace an existing 85-bed facility 
181.19  attached to a hospital that is also being replaced.  The 
181.20  threshold allowed for this project under section 144A.073 shall 
181.21  be the maximum amount available to pay the additional medical 
181.22  assistance costs of the new facility; and 
181.23     (2) to license and certify 29 beds to be added to an 
181.24  existing 69-bed facility in St. Louis county, provided that the 
181.25  29 beds must be transferred from active or layaway status at an 
181.26  existing 235-bed facility in St. Louis county. 
181.27  The licensed capacity at the 235-bed facility must be reduced to 
181.28  206 beds, but the payment rate at that facility shall not be 
181.29  adjusted as a result of this transfer.  The operating payment 
181.30  rate of the facility adding beds after completion of this 
181.31  project shall be the same as it was on the day prior to the day 
181.32  the beds are licensed and certified.  This project shall not 
181.33  proceed unless it is approved and financed under the provisions 
181.34  of section 144A.073.  The commissioner of health shall give 
181.35  priority under section 144A.073 to the project approved under 
181.36  this clause. 
182.1      (b) Projects approved under this subdivision shall be 
182.2   treated in a manner equivalent to projects approved under 
182.3   subdivision 4a. 
182.4      Sec. 2.  Minnesota Statutes 2002, section 144A.4605, 
182.5   subdivision 4, is amended to read: 
182.6      Subd. 4.  [LICENSE REQUIRED.] (a) A housing with services 
182.7   establishment registered under chapter 144D that is required to 
182.8   obtain a home care license must obtain an assisted living home 
182.9   care license according to this section or a class A or class E 
182.10  license according to rule.  A housing with services 
182.11  establishment that obtains a class E license under this 
182.12  subdivision remains subject to the payment limitations in 
182.13  sections 256B.0913, subdivision 5 5f, paragraph (h) (b), and 
182.14  256B.0915, subdivision 3, paragraph (g) 3d. 
182.15     (b) A board and lodging establishment registered for 
182.16  special services as of December 31, 1996, and also registered as 
182.17  a housing with services establishment under chapter 144D, must 
182.18  deliver home care services according to sections 144A.43 to 
182.19  144A.47, and may apply for a waiver from requirements under 
182.20  Minnesota Rules, parts 4668.0002 to 4668.0240, to operate a 
182.21  licensed agency under the standards of section 157.17.  Such 
182.22  waivers as may be granted by the department will expire upon 
182.23  promulgation of home care rules implementing section 144A.4605. 
182.24     (c) An adult foster care provider licensed by the 
182.25  department of human services and registered under chapter 144D 
182.26  may continue to provide health-related services under its foster 
182.27  care license until the promulgation of home care rules 
182.28  implementing this section. 
182.29     (d) An assisted living home care provider licensed under 
182.30  this section must comply with the disclosure provisions of 
182.31  section 325F.72 to the extent they are applicable. 
182.32     Sec. 3.  Minnesota Statutes 2002, section 256.9657, 
182.33  subdivision 1, is amended to read: 
182.34     Subdivision 1.  [NURSING HOME LICENSE SURCHARGE.] (a) 
182.35  Effective July 1, 1993, each non-state-operated nursing home 
182.36  licensed under chapter 144A shall pay to the commissioner an 
183.1   annual surcharge according to the schedule in subdivision 4.  
183.2   The surcharge shall be calculated as $620 per licensed bed.  If 
183.3   the number of licensed beds is reduced, the surcharge shall be 
183.4   based on the number of remaining licensed beds the second month 
183.5   following the receipt of timely notice by the commissioner of 
183.6   human services that beds have been delicensed.  The nursing home 
183.7   must notify the commissioner of health in writing when beds are 
183.8   delicensed.  The commissioner of health must notify the 
183.9   commissioner of human services within ten working days after 
183.10  receiving written notification.  If the notification is received 
183.11  by the commissioner of human services by the 15th of the month, 
183.12  the invoice for the second following month must be reduced to 
183.13  recognize the delicensing of beds.  Beds on layaway status 
183.14  continue to be subject to the surcharge.  The commissioner of 
183.15  human services must acknowledge a medical care surcharge appeal 
183.16  within 30 days of receipt of the written appeal from the 
183.17  provider. 
183.18     (b) Effective July 1, 1994, the surcharge in paragraph (a) 
183.19  shall be increased to $625. 
183.20     (c) Effective August 15, 2002, the surcharge under 
183.21  paragraph (b) shall be increased to $990. 
183.22     (d) Effective July 15, 2003, the surcharge under paragraph 
183.23  (c) shall be increased to $2,700. 
183.24     (e) The commissioner may reduce, and may subsequently 
183.25  restore, the surcharge under paragraph (d) based on the 
183.26  commissioner's determination of a permissible surcharge. 
183.27     (f) Between April 1, 2002, and August 15, 2003 2004, a 
183.28  facility governed by this subdivision may elect to assume full 
183.29  participation in the medical assistance program by agreeing to 
183.30  comply with all of the requirements of the medical assistance 
183.31  program, including the rate equalization law in section 256B.48, 
183.32  subdivision 1, paragraph (a), and all other requirements 
183.33  established in law or rule, and to begin intake of new medical 
183.34  assistance recipients.  Rates will be determined under Minnesota 
183.35  Rules, parts 9549.0010 to 9549.0080.  Notwithstanding section 
183.36  256B.431, subdivision 27, paragraph (i), rate calculations will 
184.1   be subject to limits as prescribed in rule and law.  Other than 
184.2   the adjustments in sections 256B.431, subdivisions 30 and 32; 
184.3   256B.437, subdivision 3, paragraph (b), Minnesota Rules, part 
184.4   9549.0057, and any other applicable legislation enacted prior to 
184.5   the finalization of rates, facilities assuming full 
184.6   participation in medical assistance under this paragraph are not 
184.7   eligible for any rate adjustments until the July 1 following 
184.8   their settle-up period. 
184.9      <b>[EFFECTIVE DATE.]</b> This section is effective June 30, 2003. 
184.10     Sec. 4.  Minnesota Statutes 2002, section 256B.0913, 
184.11  subdivision 2, is amended to read: 
184.12     Subd. 2.  [ELIGIBILITY FOR SERVICES.] Alternative care 
184.13  services are available to Minnesotans age 65 or older who are 
184.14  not eligible for medical assistance without a spenddown or 
184.15  waiver obligation but who would be eligible for medical 
184.16  assistance within 180 days of admission to a nursing facility 
184.17  and subject to subdivisions 4 to 13. 
184.18     Sec. 5.  Minnesota Statutes 2002, section 256B.0913, 
184.19  subdivision 4, is amended to read: 
184.20     Subd. 4.  [ELIGIBILITY FOR FUNDING FOR SERVICES FOR 
184.21  NONMEDICAL ASSISTANCE RECIPIENTS.] (a) Funding for services 
184.22  under the alternative care program is available to persons who 
184.23  meet the following criteria: 
184.24     (1) the person has been determined by a community 
184.25  assessment under section 256B.0911 to be a person who would 
184.26  require the level of care provided in a nursing facility, but 
184.27  for the provision of services under the alternative care 
184.28  program; 
184.29     (2) the person is age 65 or older; 
184.30     (3) the person would be eligible for medical assistance 
184.31  within 180 days of admission to a nursing facility; 
184.32     (4) the person is not ineligible for the medical assistance 
184.33  program due to an asset transfer penalty; 
184.34     (5) the person needs services that are not funded through 
184.35  other state or federal funding; and 
184.36     (6) the monthly cost of the alternative care services 
185.1   funded by the program for this person does not exceed 75 percent 
185.2   of the statewide weighted average monthly nursing facility rate 
185.3   of the case mix resident class to which the individual 
185.4   alternative care client would be assigned under Minnesota Rules, 
185.5   parts 9549.0050 to 9549.0059, less the recipient's maintenance 
185.6   needs allowance as described in section 256B.0915, subdivision 
185.7   1d, paragraph (a), until the first day of the state fiscal year 
185.8   in which the resident assessment system, under section 256B.437, 
185.9   for nursing home rate determination is implemented.  Effective 
185.10  on the first day of the state fiscal year in which a resident 
185.11  assessment system, under section 256B.437, for nursing home rate 
185.12  determination is implemented and the first day of each 
185.13  subsequent state fiscal year, the monthly cost of alternative 
185.14  care services for this person shall not exceed the alternative 
185.15  care monthly cap for the case mix resident class to which the 
185.16  alternative care client would be assigned under Minnesota Rules, 
185.17  parts 9549.0050 to 9549.0059, which was in effect on the last 
185.18  day of the previous state fiscal year, and adjusted by the 
185.19  greater of any legislatively adopted home and community-based 
185.20  services cost-of-living percentage increase or any legislatively 
185.21  adopted statewide percent rate increase for nursing 
185.22  facilities monthly limit described under section 256B.0915, 
185.23  subdivision 3a.  This monthly limit does not prohibit the 
185.24  alternative care client from payment for additional services, 
185.25  but in no case may the cost of additional services purchased 
185.26  under this section exceed the difference between the client's 
185.27  monthly service limit defined under section 256B.0915, 
185.28  subdivision 3, and the alternative care program monthly service 
185.29  limit defined in this paragraph.  If medical supplies and 
185.30  equipment or environmental modifications are or will be 
185.31  purchased for an alternative care services recipient, the costs 
185.32  may be prorated on a monthly basis for up to 12 consecutive 
185.33  months beginning with the month of purchase.  If the monthly 
185.34  cost of a recipient's other alternative care services exceeds 
185.35  the monthly limit established in this paragraph, the annual cost 
185.36  of the alternative care services shall be determined.  In this 
186.1   event, the annual cost of alternative care services shall not 
186.2   exceed 12 times the monthly limit described in this paragraph. 
186.3      (b) Alternative care funding under this subdivision is not 
186.4   available for a person who is a medical assistance recipient or 
186.5   who would be eligible for medical assistance without a spenddown 
186.6   or waiver obligation.  A person whose initial application for 
186.7   medical assistance and the elderly waiver program is being 
186.8   processed may be served under the alternative care program for a 
186.9   period up to 60 days.  If the individual is found to be eligible 
186.10  for medical assistance, medical assistance must be billed for 
186.11  services payable under the federally approved elderly waiver 
186.12  plan and delivered from the date the individual was found 
186.13  eligible for the federally approved elderly waiver plan.  
186.14  Notwithstanding this provision, upon federal approval, 
186.15  alternative care funds may not be used to pay for any service 
186.16  the cost of which (i) is payable by medical assistance or which, 
186.17  (ii) is used by a recipient to meet a medical assistance income 
186.18  spenddown or waiver obligation, or (iii) is used to pay a 
186.19  medical assistance income spenddown for a person who is eligible 
186.20  to participate in the federally approved elderly waiver program 
186.21  under the special income standard provisions.  
186.22     (c) Alternative care funding is not available for a person 
186.23  who resides in a licensed nursing home, certified boarding care 
186.24  home, hospital, or intermediate care facility, except for case 
186.25  management services which are provided in support of the 
186.26  discharge planning process to for a nursing home resident or 
186.27  certified boarding care home resident to assist with a 
186.28  relocation process to a community-based setting. 
186.29     (d) Alternative care funding is not available for a person 
186.30  whose income is greater than the maintenance needs allowance 
186.31  under section 256B.0915, subdivision 1d, but equal to or less 
186.32  than 120 percent of the federal poverty guideline effective July 
186.33  1, in the year for which alternative care eligibility is 
186.34  determined, who would be eligible for the elderly waiver with a 
186.35  waiver obligation. 
186.36     Sec. 6.  Minnesota Statutes 2002, section 256B.0913, 
187.1   subdivision 5, is amended to read: 
187.2      Subd. 5.  [SERVICES COVERED UNDER ALTERNATIVE CARE.] (a) 
187.3   Alternative care funding may be used for payment of costs of: 
187.4      (1) adult foster care; 
187.5      (2) adult day care; 
187.6      (3) home health aide; 
187.7      (4) homemaker services; 
187.8      (5) personal care; 
187.9      (6) case management; 
187.10     (7) respite care; 
187.11     (8) assisted living; 
187.12     (9) residential care services; 
187.13     (10) care-related supplies and equipment; 
187.14     (11) meals delivered to the home; 
187.15     (12) transportation; 
187.16     (13) nursing services; 
187.17     (14) chore services; 
187.18     (15) companion services; 
187.19     (16) nutrition services; 
187.20     (17) training for direct informal caregivers; 
187.21     (18) telehome care devices to monitor recipients provide 
187.22  services in their own homes as an alternative to hospital care, 
187.23  nursing home care, or home in conjunction with in-home visits; 
187.24     (19) other services which includes discretionary funds and 
187.25  direct cash payments to clients, services, for which counties 
187.26  may make payment from their alternative care program allocation 
187.27  or services not otherwise defined in this section or section 
187.28  256B.0625, following approval by the commissioner, subject to 
187.29  the provisions of paragraph (j).  Total annual payments for 
187.30  "other services" for all clients within a county may not exceed 
187.31  25 percent of that county's annual alternative care program base 
187.32  allocation; and 
187.33     (20) environmental modifications.; and 
187.34     (21) direct cash payments for which counties may make 
187.35  payment from their alternative care program allocation to 
187.36  clients for the purpose of purchasing services, following 
188.1   approval by the commissioner, and subject to the provisions of 
188.2   subdivision 5h, until approval and implementation of 
188.3   consumer-directed services through the federally approved 
188.4   elderly waiver plan.  Upon implementation, consumer-directed 
188.5   services under the alternative care program are available 
188.6   statewide and limited to the average monthly expenditures 
188.7   representative of all alternative care program participants for 
188.8   the same case mix resident class assigned in the most recent 
188.9   fiscal year for which complete expenditure data is available. 
188.10     Total annual payments for discretionary services and direct 
188.11  cash payments, until the federally approved consumer-directed 
188.12  service option is implemented statewide, for all clients within 
188.13  a county may not exceed 25 percent of that county's annual 
188.14  alternative care program base allocation.  Thereafter, 
188.15  discretionary services are limited to 25 percent of the county's 
188.16  annual alternative care program base allocation. 
188.17     Subd. 5a.  [SERVICES; SERVICE DEFINITIONS; SERVICE 
188.18  STANDARDS.] (a) Unless specified in statute, the services, 
188.19  service definitions, and standards for alternative care services 
188.20  shall be the same as the services, service definitions, and 
188.21  standards specified in the federally approved elderly waiver 
188.22  plan, except for transitional support services. 
188.23     (b) The county agency must ensure that the funds are not 
188.24  used to supplant services available through other public 
188.25  assistance or services programs. 
188.26     (c) Unless specified in statute, the services, service 
188.27  definitions, and standards for alternative care services shall 
188.28  be the same as the services, service definitions, and standards 
188.29  specified in the federally approved elderly waiver plan.  Except 
188.30  for the county agencies' approval of direct cash payments to 
188.31  clients as described in paragraph (j) or For a provider of 
188.32  supplies and equipment when the monthly cost of the supplies and 
188.33  equipment is less than $250, persons or agencies must be 
188.34  employed by or under a contract with the county agency or the 
188.35  public health nursing agency of the local board of health in 
188.36  order to receive funding under the alternative care program.  
189.1   Supplies and equipment may be purchased from a vendor not 
189.2   certified to participate in the Medicaid program if the cost for 
189.3   the item is less than that of a Medicaid vendor.  
189.4      (c) Personal care services must meet the service standards 
189.5   defined in the federally approved elderly waiver plan, except 
189.6   that a county agency may contract with a client's relative who 
189.7   meets the relative hardship waiver requirements or a relative 
189.8   who meets the criteria and is also the responsible party under 
189.9   an individual service plan that ensures the client's health and 
189.10  safety and supervision of the personal care services by a 
189.11  qualified professional as defined in section 256B.0625, 
189.12  subdivision 19c.  Relative hardship is established by the county 
189.13  when the client's care causes a relative caregiver to do any of 
189.14  the following:  resign from a paying job, reduce work hours 
189.15  resulting in lost wages, obtain a leave of absence resulting in 
189.16  lost wages, incur substantial client-related expenses, provide 
189.17  services to address authorized, unstaffed direct care time, or 
189.18  meet special needs of the client unmet in the formal service 
189.19  plan. 
189.20     (d) Subd. 5b.  [ADULT FOSTER CARE RATE.] The adult foster 
189.21  care rate shall be considered a difficulty of care payment and 
189.22  shall not include room and board.  The adult foster care rate 
189.23  shall be negotiated between the county agency and the foster 
189.24  care provider.  The alternative care payment for the foster care 
189.25  service in combination with the payment for other alternative 
189.26  care services, including case management, must not exceed the 
189.27  limit specified in subdivision 4, paragraph (a), clause (6). 
189.28     (e) Personal care services must meet the service standards 
189.29  defined in the federally approved elderly waiver plan, except 
189.30  that a county agency may contract with a client's relative who 
189.31  meets the relative hardship waiver requirement as defined in 
189.32  section 256B.0627, subdivision 4, paragraph (b), clause (10), to 
189.33  provide personal care services if the county agency ensures 
189.34  supervision of this service by a qualified professional as 
189.35  defined in section 256B.0625, subdivision 19c.  
189.36     (f)  Subd. 5c.  [RESIDENTIAL CARE SERVICES; SUPPORTIVE 
190.1   SERVICES; HEALTH-RELATED SERVICES.] For purposes of this 
190.2   section, residential care services are services which are 
190.3   provided to individuals living in residential care homes.  
190.4   Residential care homes are currently licensed as board and 
190.5   lodging establishments under section 157.16, and are registered 
190.6   with the department of health as providing special services 
190.7   under section 157.17 and are not subject to registration except 
190.8   settings that are currently registered under chapter 144D.  
190.9   Residential care services are defined as "supportive services" 
190.10  and "health-related services."  "Supportive services" means the 
190.11  provision of up to 24-hour supervision and oversight.  
190.12  Supportive services includes:  (1) transportation, when provided 
190.13  by the residential care home only; (2) socialization, when 
190.14  socialization is part of the plan of care, has specific goals 
190.15  and outcomes established, and is not diversional or recreational 
190.16  in nature; (3) assisting clients in setting up meetings and 
190.17  appointments; (4) assisting clients in setting up medical and 
190.18  social services; (5) providing assistance with personal laundry, 
190.19  such as carrying the client's laundry to the laundry room.  
190.20  Assistance with personal laundry does not include any laundry, 
190.21  such as bed linen, that is included in the room and board rate 
190.22  services as defined in section 157.17, subdivision 1, paragraph 
190.23  (a).  "Health-related services" are limited to minimal 
190.24  assistance with dressing, grooming, and bathing and providing 
190.25  reminders to residents to take medications that are 
190.26  self-administered or providing storage for medications, if 
190.27  requested means services covered in section 157.17, subdivision 
190.28  1, paragraph (b).  Individuals receiving residential care 
190.29  services cannot receive homemaking services funded under this 
190.30  section.  
190.31     (g) Subd. 5d.  [ASSISTED LIVING SERVICES.] For the purposes 
190.32  of this section, "assisted living" refers to supportive services 
190.33  provided by a single vendor to clients who reside in the same 
190.34  apartment building of three or more units which are not subject 
190.35  to registration under chapter 144D and are licensed by the 
190.36  department of health as a class A home care provider or a class 
191.1   E home care provider.  Assisted living services are defined as 
191.2   up to 24-hour supervision, and oversight, and supportive 
191.3   services as defined in clause (1) section 157.17, subdivision 1, 
191.4   paragraph (a), individualized home care aide tasks as defined in 
191.5   clause (2) Minnesota Rules, part 4668.0110, and individualized 
191.6   home management tasks as defined in clause (3) Minnesota Rules, 
191.7   part 4668.0120 provided to residents of a residential center 
191.8   living in their units or apartments with a full kitchen and 
191.9   bathroom.  A full kitchen includes a stove, oven, refrigerator, 
191.10  food preparation counter space, and a kitchen utensil storage 
191.11  compartment.  Assisted living services must be provided by the 
191.12  management of the residential center or by providers under 
191.13  contract with the management or with the county. 
191.14     (1) Supportive services include:  
191.15     (i) socialization, when socialization is part of the plan 
191.16  of care, has specific goals and outcomes established, and is not 
191.17  diversional or recreational in nature; 
191.18     (ii) assisting clients in setting up meetings and 
191.19  appointments; and 
191.20     (iii) providing transportation, when provided by the 
191.21  residential center only.  
191.22     (2) Home care aide tasks means:  
191.23     (i) preparing modified diets, such as diabetic or low 
191.24  sodium diets; 
191.25     (ii) reminding residents to take regularly scheduled 
191.26  medications or to perform exercises; 
191.27     (iii) household chores in the presence of technically 
191.28  sophisticated medical equipment or episodes of acute illness or 
191.29  infectious disease; 
191.30     (iv) household chores when the resident's care requires the 
191.31  prevention of exposure to infectious disease or containment of 
191.32  infectious disease; and 
191.33     (v) assisting with dressing, oral hygiene, hair care, 
191.34  grooming, and bathing, if the resident is ambulatory, and if the 
191.35  resident has no serious acute illness or infectious disease.  
191.36  Oral hygiene means care of teeth, gums, and oral prosthetic 
192.1   devices.  
192.2      (3) Home management tasks means:  
192.3      (i) housekeeping; 
192.4      (ii) laundry; 
192.5      (iii) preparation of regular snacks and meals; and 
192.6      (iv) shopping.  
192.7      Subd. 5e.  [FURTHER ASSISTED LIVING REQUIREMENTS.] (a) 
192.8   Individuals receiving assisted living services shall not receive 
192.9   both assisted living services and homemaking services.  
192.10  Individualized means services are chosen and designed 
192.11  specifically for each resident's needs, rather than provided or 
192.12  offered to all residents regardless of their illnesses, 
192.13  disabilities, or physical conditions.  Assisted living services 
192.14  as defined in this section shall not be authorized in boarding 
192.15  and lodging establishments licensed according to sections 
192.16  157.011 and 157.15 to 157.22. 
192.17     (h) (b) For establishments registered under chapter 144D, 
192.18  assisted living services under this section means either the 
192.19  services described in paragraph (g) subdivision 5d and delivered 
192.20  by a class E home care provider licensed by the department of 
192.21  health or the services described under section 144A.4605 and 
192.22  delivered by an assisted living home care provider or a class A 
192.23  home care provider licensed by the commissioner of health. 
192.24     (i) Subd. 5f.  [PAYMENT RATES FOR ASSISTED LIVING SERVICES 
192.25  AND RESIDENTIAL CARE.] (a) Payment for assisted living services 
192.26  and residential care services shall be a monthly rate negotiated 
192.27  and authorized by the county agency based on an individualized 
192.28  service plan for each resident and may not cover direct rent or 
192.29  food costs.  
192.30     (1) (b) The individualized monthly negotiated payment for 
192.31  assisted living services as described in paragraph 
192.32  (g) subdivision 5d or (h) 5e, paragraph (b), and residential 
192.33  care services as described in paragraph (f) subdivision 5c, 
192.34  shall not exceed the nonfederal share in effect on July 1 of the 
192.35  state fiscal year for which the rate limit is being calculated 
192.36  of the greater of either the statewide or any of the geographic 
193.1   groups' weighted average monthly nursing facility payment rate 
193.2   of the case mix resident class to which the alternative care 
193.3   eligible client would be assigned under Minnesota Rules, parts 
193.4   9549.0050 to 9549.0059, less the maintenance needs allowance as 
193.5   described in section 256B.0915, subdivision 1d, paragraph (a), 
193.6   until the first day of the state fiscal year in which a resident 
193.7   assessment system, under section 256B.437, of nursing home rate 
193.8   determination is implemented.  Effective on the first day of the 
193.9   state fiscal year in which a resident assessment system, under 
193.10  section 256B.437, of nursing home rate determination is 
193.11  implemented and the first day of each subsequent state fiscal 
193.12  year, the individualized monthly negotiated payment for the 
193.13  services described in this clause shall not exceed the limit 
193.14  described in this clause which was in effect on the last day of 
193.15  the previous state fiscal year and which has been adjusted by 
193.16  the greater of any legislatively adopted home and 
193.17  community-based services cost-of-living percentage increase or 
193.18  any legislatively adopted statewide percent rate increase for 
193.19  nursing facilities groups according to subdivision 4, paragraph 
193.20  (a), clause (6). 
193.21     (2) (c) The individualized monthly negotiated payment for 
193.22  assisted living services described under section 144A.4605 and 
193.23  delivered by a provider licensed by the department of health as 
193.24  a class A home care provider or an assisted living home care 
193.25  provider and provided in a building that is registered as a 
193.26  housing with services establishment under chapter 144D and that 
193.27  provides 24-hour supervision in combination with the payment for 
193.28  other alternative care services, including case management, must 
193.29  not exceed the limit specified in subdivision 4, paragraph (a), 
193.30  clause (6). 
193.31     (j) Subd. 5g.  [PROVISIONS GOVERNING DIRECT CASH PAYMENTS.] 
193.32  A county agency may make payment from their alternative care 
193.33  program allocation for "other services" which include use of 
193.34  "discretionary funds" for services that are not otherwise 
193.35  defined in this section and direct cash payments to the client 
193.36  for the purpose of purchasing the services.  The following 
194.1   provisions apply to payments under this paragraph subdivision: 
194.2      (1) a cash payment to a client under this provision cannot 
194.3   exceed the monthly payment limit for that client as specified in 
194.4   subdivision 4, paragraph (a), clause (6); and 
194.5      (2) a county may not approve any cash payment for a client 
194.6   who meets either of the following: 
194.7      (i) has been assessed as having a dependency in 
194.8   orientation, unless the client has an authorized 
194.9   representative.  An "authorized representative" means an 
194.10  individual who is at least 18 years of age and is designated by 
194.11  the person or the person's legal representative to act on the 
194.12  person's behalf.  This individual may be a family member, 
194.13  guardian, representative payee, or other individual designated 
194.14  by the person or the person's legal representative, if any, to 
194.15  assist in purchasing and arranging for supports; or 
194.16     (ii) is concurrently receiving adult foster care, 
194.17  residential care, or assisted living services;. 
194.18     (3)  Subd. 5h.  [CASH PAYMENTS TO PERSONS.] (a) Cash 
194.19  payments to a person or a person's family will be provided 
194.20  through a monthly payment and be in the form of cash, voucher, 
194.21  or direct county payment to a vendor.  Fees or premiums assessed 
194.22  to the person for eligibility for health and human services are 
194.23  not reimbursable through this service option.  Services and 
194.24  goods purchased through cash payments must be identified in the 
194.25  person's individualized care plan and must meet all of the 
194.26  following criteria: 
194.27     (i) (1) they must be over and above the normal cost of 
194.28  caring for the person if the person did not have functional 
194.29  limitations; 
194.30     (ii) (2) they must be directly attributable to the person's 
194.31  functional limitations; 
194.32     (iii) (3) they must have the potential to be effective at 
194.33  meeting the goals of the program; and 
194.34     (iv) (4) they must be consistent with the needs identified 
194.35  in the individualized service plan.  The service plan shall 
194.36  specify the needs of the person and family, the form and amount 
195.1   of payment, the items and services to be reimbursed, and the 
195.2   arrangements for management of the individual grant; and. 
195.3      (v) (b) The person, the person's family, or the legal 
195.4   representative shall be provided sufficient information to 
195.5   ensure an informed choice of alternatives.  The local agency 
195.6   shall document this information in the person's care plan, 
195.7   including the type and level of expenditures to be reimbursed;. 
195.8      (c) Persons receiving grants under this section shall have 
195.9   the following responsibilities: 
195.10     (1) spend the grant money in a manner consistent with their 
195.11  individualized service plan with the local agency; 
195.12     (2) notify the local agency of any necessary changes in the 
195.13  grant expenditures; 
195.14     (3) arrange and pay for supports; and 
195.15     (4) inform the local agency of areas where they have 
195.16  experienced difficulty securing or maintaining supports. 
195.17     (d) The county shall report client outcomes, services, and 
195.18  costs under this paragraph in a manner prescribed by the 
195.19  commissioner. 
195.20     (4) Subd. 5i.  [IMMUNITY.] The state of Minnesota, county, 
195.21  lead agency under contract, or tribal government under contract 
195.22  to administer the alternative care program shall not be liable 
195.23  for damages, injuries, or liabilities sustained through the 
195.24  purchase of direct supports or goods by the person, the person's 
195.25  family, or the authorized representative with funds received 
195.26  through the cash payments under this section.  Liabilities 
195.27  include, but are not limited to, workers' compensation, the 
195.28  Federal Insurance Contributions Act (FICA), or the Federal 
195.29  Unemployment Tax Act (FUTA);. 
195.30     (5) persons receiving grants under this section shall have 
195.31  the following responsibilities: 
195.32     (i) spend the grant money in a manner consistent with their 
195.33  individualized service plan with the local agency; 
195.34     (ii) notify the local agency of any necessary changes in 
195.35  the grant expenditures; 
195.36     (iii) arrange and pay for supports; and 
196.1      (iv) inform the local agency of areas where they have 
196.2   experienced difficulty securing or maintaining supports; and 
196.3      (6) the county shall report client outcomes, services, and 
196.4   costs under this paragraph in a manner prescribed by the 
196.5   commissioner. 
196.6      Sec. 7.  Minnesota Statutes 2002, section 256B.0913, 
196.7   subdivision 6, is amended to read: 
196.8      Subd. 6.  [ALTERNATIVE CARE PROGRAM ADMINISTRATION.] (a) 
196.9   The alternative care program is administered by the county 
196.10  agency.  This agency is the lead agency responsible for the 
196.11  local administration of the alternative care program as 
196.12  described in this section.  However, it may contract with the 
196.13  public health nursing service to be the lead agency.  The 
196.14  commissioner may contract with federally recognized Indian 
196.15  tribes with a reservation in Minnesota to serve as the lead 
196.16  agency responsible for the local administration of the 
196.17  alternative care program as described in the contract. 
196.18     (b) Alternative care pilot projects operate according to 
196.19  this section and the provisions of Laws 1993, First Special 
196.20  Session chapter 1, article 5, section 133, under agreement with 
196.21  the commissioner.  Each pilot project agreement period shall 
196.22  begin no later than the first payment cycle of the state fiscal 
196.23  year and continue through the last payment cycle of the state 
196.24  fiscal year. 
196.25     Sec. 8.  Minnesota Statutes 2002, section 256B.0913, 
196.26  subdivision 7, is amended to read: 
196.27     Subd. 7.  [CASE MANAGEMENT.] Providers of case management 
196.28  services for persons receiving services funded by the 
196.29  alternative care program must meet the qualification 
196.30  requirements and standards specified in section 256B.0915, 
196.31  subdivision 1b.  The case manager must not approve alternative 
196.32  care funding for a client in any setting in which the case 
196.33  manager cannot reasonably ensure the client's health and 
196.34  safety.  The case manager is responsible for the 
196.35  cost-effectiveness of the alternative care individual care plan 
196.36  and must not approve any care plan in which the cost of services 
197.1   funded by alternative care and client contributions exceeds the 
197.2   limit specified in section 256B.0915, subdivision 3, paragraph 
197.3   (b).  The county may allow a case manager employed by the county 
197.4   to delegate certain aspects of the case management activity to 
197.5   another individual employed by the county provided there is 
197.6   oversight of the individual by the case manager.  The case 
197.7   manager may not delegate those aspects which require 
197.8   professional judgment including assessments, reassessments, and 
197.9   care plan development. 
197.10     Sec. 9.  Minnesota Statutes 2002, section 256B.0913, 
197.11  subdivision 8, is amended to read: 
197.12     Subd. 8.  [REQUIREMENTS FOR INDIVIDUAL CARE PLAN.] (a) The 
197.13  case manager shall implement the plan of care for each 
197.14  alternative care client and ensure that a client's service needs 
197.15  and eligibility are reassessed at least every 12 months.  The 
197.16  plan shall include any services prescribed by the individual's 
197.17  attending physician as necessary to allow the individual to 
197.18  remain in a community setting.  In developing the individual's 
197.19  care plan, the case manager should include the use of volunteers 
197.20  from families and neighbors, religious organizations, social 
197.21  clubs, and civic and service organizations to support the formal 
197.22  home care services.  The county shall be held harmless for 
197.23  damages or injuries sustained through the use of volunteers 
197.24  under this subdivision including workers' compensation 
197.25  liability.  The lead agency shall provide documentation in each 
197.26  individual's plan of care and, if requested, to the commissioner 
197.27  that the most cost-effective alternatives available have been 
197.28  offered to the individual and that the individual was free to 
197.29  choose among available qualified providers, both public and 
197.30  private, including qualified case management or service 
197.31  coordination providers other than those employed by the lead 
197.32  agency when the lead agency maintains responsibility for prior 
197.33  authorizing services in accordance with statutory and 
197.34  administrative requirements.  The case manager must give the 
197.35  individual a ten-day written notice of any denial, termination, 
197.36  or reduction of alternative care services. 
198.1      (b) If the county administering alternative care services 
198.2   is different than the county of financial responsibility, the 
198.3   care plan may be implemented without the approval of the county 
198.4   of financial responsibility. 
198.5      Sec. 10.  Minnesota Statutes 2002, section 256B.0913, 
198.6   subdivision 10, is amended to read: 
198.7      Subd. 10.  [ALLOCATION FORMULA.] (a) The alternative care 
198.8   appropriation for fiscal years 1992 and beyond shall cover only 
198.9   alternative care eligible clients.  By July 1 of each year, the 
198.10  commissioner shall allocate to county agencies the state funds 
198.11  available for alternative care for persons eligible under 
198.12  subdivision 2. 
198.13     (b) The adjusted base for each county is the county's 
198.14  current fiscal year base allocation plus any targeted funds 
198.15  approved during the current fiscal year.  Calculations for 
198.16  paragraphs (c) and (d) are to be made as follows:  for each 
198.17  county, the determination of alternative care program 
198.18  expenditures shall be based on payments for services rendered 
198.19  from April 1 through March 31 in the base year, to the extent 
198.20  that claims have been submitted and paid by June 1 of that year. 
198.21     (c) If the alternative care program expenditures as defined 
198.22  in paragraph (b) are 95 percent or more of the county's adjusted 
198.23  base allocation, the allocation for the next fiscal year is 100 
198.24  percent of the adjusted base, plus inflation to the extent that 
198.25  inflation is included in the state budget. 
198.26     (d) If the alternative care program expenditures as defined 
198.27  in paragraph (b) are less than 95 percent of the county's 
198.28  adjusted base allocation, the allocation for the next fiscal 
198.29  year is the adjusted base allocation less the amount of unspent 
198.30  funds below the 95 percent level. 
198.31     (e) If the annual legislative appropriation for the 
198.32  alternative care program is inadequate to fund the combined 
198.33  county allocations for a biennium, the commissioner shall 
198.34  distribute to each county the entire annual appropriation as 
198.35  that county's percentage of the computed base as calculated in 
198.36  paragraphs (c) and (d). 
199.1      (f) On agreement between the commissioner and the lead 
199.2   agency, the commissioner may have discretion to reallocate 
199.3   alternative care base allocations distributed to lead agencies 
199.4   in which the base amount exceeds program expenditures. 
199.5      Sec. 11.  Minnesota Statutes 2002, section 256B.0913, 
199.6   subdivision 12, is amended to read: 
199.7      Subd. 12.  [CLIENT PREMIUMS.] (a) A premium is required for 
199.8   all alternative care eligible clients to help pay for the cost 
199.9   of participating in the program.  The amount of the premium for 
199.10  the alternative care client shall be determined as follows: 
199.11     (1) when the alternative care client's income less 
199.12  recurring and predictable medical expenses is greater than the 
199.13  recipient's maintenance needs allowance as defined in section 
199.14  256B.0915, subdivision 1d, paragraph (a), but less than 150 
199.15  percent of the federal poverty guideline effective on July 1 of 
199.16  the state fiscal year in which the premium is being computed, 
199.17  and total assets are less than $10,000, the fee is zero; 
199.18     (2) when the alternative care client's income less 
199.19  recurring and predictable medical expenses is greater than 150 
199.20  percent of the federal poverty guideline effective on July 1 of 
199.21  the state fiscal year in which the premium is being computed, 
199.22  and total assets are less than $10,000, the fee is 25 percent of 
199.23  the cost of alternative care services or the difference between 
199.24  150 percent of the federal poverty guideline effective on July 1 
199.25  of the state fiscal year in which the premium is being computed 
199.26  and the client's income less recurring and predictable medical 
199.27  expenses, whichever is less; and 
199.28     (3) when the alternative care client's total assets are 
199.29  greater than $10,000, the fee is 25 percent of the cost of 
199.30  alternative care services.  
199.31     For married persons, total assets are defined as the total 
199.32  marital assets less the estimated community spouse asset 
199.33  allowance, under section 256B.059, if applicable.  For married 
199.34  persons, total income is defined as the client's income less the 
199.35  monthly spousal allotment, under section 256B.058. 
199.36     All alternative care services except case management shall 
200.1   be included in the estimated costs for the purpose of 
200.2   determining 25 percent of the costs premium amount. 
200.3      Premiums are due and payable each month alternative care 
200.4   services are received unless the actual cost of the services is 
200.5   less than the premium, in which case the fee is the lesser 
200.6   amount. 
200.7      (b) The fee shall be waived by the commissioner when: 
200.8      (1) a person who is residing in a nursing facility is 
200.9   receiving case management only; 
200.10     (2) a person is applying for medical assistance; 
200.11     (3) a married couple is requesting an asset assessment 
200.12  under the spousal impoverishment provisions; 
200.13     (4) a person is found eligible for alternative care, but is 
200.14  not yet receiving alternative care services; or 
200.15     (5) a person's fee under paragraph (a) is less than $25; or 
200.16     (6) a person has chosen to participate in a 
200.17  consumer-directed service plan for which the cost is no greater 
200.18  than the total cost of the person's alternative care service 
200.19  plan less the monthly premium amount that would otherwise be 
200.20  assessed. 
200.21     (c) The county agency must record in the state's receivable 
200.22  system the client's assessed premium amount or the reason the 
200.23  premium has been waived.  The commissioner will bill and collect 
200.24  the premium from the client.  Money collected must be deposited 
200.25  in the general fund and is appropriated to the commissioner for 
200.26  the alternative care program.  The client must supply the county 
200.27  with the client's social security number at the time of 
200.28  application.  The county shall supply the commissioner with the 
200.29  client's social security number and other information the 
200.30  commissioner requires to collect the premium from the client.  
200.31  The commissioner shall collect unpaid premiums using the Revenue 
200.32  Recapture Act in chapter 270A and other methods available to the 
200.33  commissioner.  The commissioner may require counties to inform 
200.34  clients of the collection procedures that may be used by the 
200.35  state if a premium is not paid.  This paragraph does not apply 
200.36  to alternative care pilot projects authorized in Laws 1993, 
201.1   First Special Session chapter 1, article 5, section 133, if a 
201.2   county operating under the pilot project reports the following 
201.3   dollar amounts to the commissioner quarterly: 
201.4      (1) total premiums billed to clients; 
201.5      (2) total collections of premiums billed; and 
201.6      (3) balance of premiums owed by clients. 
201.7   If a county does not adhere to these reporting requirements, the 
201.8   commissioner may terminate the billing, collecting, and 
201.9   remitting portions of the pilot project and require the county 
201.10  involved to operate under the procedures set forth in this 
201.11  paragraph. 
201.12     Sec. 12.  Minnesota Statutes 2002, section 256B.0915, 
201.13  subdivision 3, is amended to read: 
201.14     Subd. 3.  [LIMITS OF CASES, RATES, PAYMENTS, AND 
201.15  FORECASTING.] (a) The number of medical assistance waiver 
201.16  recipients that a county may serve must be allocated according 
201.17  to the number of medical assistance waiver cases open on July 1 
201.18  of each fiscal year.  Additional recipients may be served with 
201.19  the approval of the commissioner. 
201.20     (b) Subd. 3a.  [ELDERLY WAIVER COST LIMITS.] (a) The 
201.21  monthly limit for the cost of waivered services to an individual 
201.22  elderly waiver client shall be the weighted average monthly 
201.23  nursing facility rate of the case mix resident class to which 
201.24  the elderly waiver client would be assigned under Minnesota 
201.25  Rules, parts 9549.0050 to 9549.0059, less the recipient's 
201.26  maintenance needs allowance as described in subdivision 1d, 
201.27  paragraph (a), until the first day of the state fiscal year in 
201.28  which the resident assessment system as described in section 
201.29  256B.437 for nursing home rate determination is implemented.  
201.30  Effective on the first day of the state fiscal year in which the 
201.31  resident assessment system as described in section 256B.437 for 
201.32  nursing home rate determination is implemented and the first day 
201.33  of each subsequent state fiscal year, the monthly limit for the 
201.34  cost of waivered services to an individual elderly waiver client 
201.35  shall be the rate of the case mix resident class to which the 
201.36  waiver client would be assigned under Minnesota Rules, parts 
202.1   9549.0050 to 9549.0059, in effect on the last day of the 
202.2   previous state fiscal year, adjusted by the greater of any 
202.3   legislatively adopted home and community-based services 
202.4   cost-of-living percentage increase or any legislatively adopted 
202.5   statewide percent rate increase for nursing facilities. 
202.6      (c) (b) If extended medical supplies and equipment or 
202.7   environmental modifications are or will be purchased for an 
202.8   elderly waiver client, the costs may be prorated for up to 12 
202.9   consecutive months beginning with the month of purchase.  If the 
202.10  monthly cost of a recipient's waivered services exceeds the 
202.11  monthly limit established in paragraph (b) (a), the annual cost 
202.12  of all waivered services shall be determined.  In this event, 
202.13  the annual cost of all waivered services shall not exceed 12 
202.14  times the monthly limit of waivered services as described in 
202.15  paragraph (b) (a).  
202.16     (d) Subd. 3b.  [COST LIMITS FOR ELDERLY WAIVER APPLICANTS 
202.17  WHO RESIDE IN A NURSING FACILITY.] (a) For a person who is a 
202.18  nursing facility resident at the time of requesting a 
202.19  determination of eligibility for elderly waivered services, a 
202.20  monthly conversion limit for the cost of elderly waivered 
202.21  services may be requested.  The monthly conversion limit for the 
202.22  cost of elderly waiver services shall be the resident class 
202.23  assigned under Minnesota Rules, parts 9549.0050 to 9549.0059, 
202.24  for that resident in the nursing facility where the resident 
202.25  currently resides until July 1 of the state fiscal year in which 
202.26  the resident assessment system as described in section 256B.437 
202.27  for nursing home rate determination is implemented.  Effective 
202.28  on July 1 of the state fiscal year in which the resident 
202.29  assessment system as described in section 256B.437 for nursing 
202.30  home rate determination is implemented, the monthly conversion 
202.31  limit for the cost of elderly waiver services shall be the per 
202.32  diem nursing facility rate as determined by the resident 
202.33  assessment system as described in section 256B.437 for that 
202.34  resident in the nursing facility where the resident currently 
202.35  resides multiplied by 365 and divided by 12, less the 
202.36  recipient's maintenance needs allowance as described in 
203.1   subdivision 1d.  The initially approved conversion rate may be 
203.2   adjusted by the greater of any subsequent legislatively adopted 
203.3   home and community-based services cost-of-living percentage 
203.4   increase or any subsequent legislatively adopted statewide 
203.5   percentage rate increase for nursing facilities.  The limit 
203.6   under this clause subdivision only applies to persons discharged 
203.7   from a nursing facility after a minimum 30-day stay and found 
203.8   eligible for waivered services on or after July 1, 1997.  
203.9      (b) The following costs must be included in determining the 
203.10  total monthly costs for the waiver client: 
203.11     (1) cost of all waivered services, including extended 
203.12  medical supplies and equipment and environmental modifications; 
203.13  and 
203.14     (2) cost of skilled nursing, home health aide, and personal 
203.15  care services reimbursable by medical assistance.  
203.16     (e) Subd. 3c.  [SERVICE APPROVAL AND CONTRACTING 
203.17  PROVISIONS.] (a) Medical assistance funding for skilled nursing 
203.18  services, private duty nursing, home health aide, and personal 
203.19  care services for waiver recipients must be approved by the case 
203.20  manager and included in the individual care plan. 
203.21     (f) (b) A county is not required to contract with a 
203.22  provider of supplies and equipment if the monthly cost of the 
203.23  supplies and equipment is less than $250.  
203.24     (g) Subd. 3d.  [ADULT FOSTER CARE RATE.] The adult foster 
203.25  care rate shall be considered a difficulty of care payment and 
203.26  shall not include room and board.  The adult foster care service 
203.27  rate shall be negotiated between the county agency and the 
203.28  foster care provider.  The elderly waiver payment for the foster 
203.29  care service in combination with the payment for all other 
203.30  elderly waiver services, including case management, must not 
203.31  exceed the limit specified in subdivision 3a, paragraph (b) (a). 
203.32     (h) Subd. 3e.  [ASSISTED LIVING SERVICE RATE.] (a) Payment 
203.33  for assisted living service shall be a monthly rate negotiated 
203.34  and authorized by the county agency based on an individualized 
203.35  service plan for each resident and may not cover direct rent or 
203.36  food costs. 
204.1      (1) (b) The individualized monthly negotiated payment for 
204.2   assisted living services as described in section 256B.0913, 
204.3   subdivision 5, paragraph (g) or (h) subdivisions 5d to 5f, and 
204.4   residential care services as described in section 256B.0913, 
204.5   subdivision 5, paragraph (f) 5c, shall not exceed the nonfederal 
204.6   share, in effect on July 1 of the state fiscal year for which 
204.7   the rate limit is being calculated, of the greater of either the 
204.8   statewide or any of the geographic groups' weighted average 
204.9   monthly nursing facility rate of the case mix resident class to 
204.10  which the elderly waiver eligible client would be assigned under 
204.11  Minnesota Rules, parts 9549.0050 to 9549.0059, less the 
204.12  maintenance needs allowance as described in subdivision 1d, 
204.13  paragraph (a), until the July 1 of the state fiscal year in 
204.14  which the resident assessment system as described in section 
204.15  256B.437 for nursing home rate determination is implemented.  
204.16  Effective on July 1 of the state fiscal year in which the 
204.17  resident assessment system as described in section 256B.437 for 
204.18  nursing home rate determination is implemented and July 1 of 
204.19  each subsequent state fiscal year, the individualized monthly 
204.20  negotiated payment for the services described in this clause 
204.21  shall not exceed the limit described in this clause which was in 
204.22  effect on June 30 of the previous state fiscal year and which 
204.23  has been adjusted by the greater of any legislatively adopted 
204.24  home and community-based services cost-of-living percentage 
204.25  increase or any legislatively adopted statewide percent rate 
204.26  increase for nursing facilities. 
204.27     (2) (c) The individualized monthly negotiated payment for 
204.28  assisted living services described in section 144A.4605 and 
204.29  delivered by a provider licensed by the department of health as 
204.30  a class A home care provider or an assisted living home care 
204.31  provider and provided in a building that is registered as a 
204.32  housing with services establishment under chapter 144D and that 
204.33  provides 24-hour supervision in combination with the payment for 
204.34  other elderly waiver services, including case management, must 
204.35  not exceed the limit specified in paragraph (b) subdivision 3a. 
204.36     (i) Subd. 3f.  [INDIVIDUAL SERVICE RATES; EXPENDITURE 
205.1   FORECASTS.] (a) The county shall negotiate individual service 
205.2   rates with vendors and may authorize payment for actual costs up 
205.3   to the county's current approved rate.  Persons or agencies must 
205.4   be employed by or under a contract with the county agency or the 
205.5   public health nursing agency of the local board of health in 
205.6   order to receive funding under the elderly waiver program, 
205.7   except as a provider of supplies and equipment when the monthly 
205.8   cost of the supplies and equipment is less than $250.  
205.9      (j) (b) Reimbursement for the medical assistance recipients 
205.10  under the approved waiver shall be made from the medical 
205.11  assistance account through the invoice processing procedures of 
205.12  the department's Medicaid Management Information System (MMIS), 
205.13  only with the approval of the client's case manager.  The budget 
205.14  for the state share of the Medicaid expenditures shall be 
205.15  forecasted with the medical assistance budget, and shall be 
205.16  consistent with the approved waiver.  
205.17     (k) Subd. 3g.  [SERVICE RATE LIMITS; STATE ASSUMPTION OF 
205.18  COSTS.] (a) To improve access to community services and 
205.19  eliminate payment disparities between the alternative care 
205.20  program and the elderly waiver, the commissioner shall establish 
205.21  statewide maximum service rate limits and eliminate 
205.22  county-specific service rate limits. 
205.23     (1) (b) Effective July 1, 2001, for service rate limits, 
205.24  except those described or defined in paragraphs (g) and 
205.25  (h) subdivisions 3d and 3e, the rate limit for each service 
205.26  shall be the greater of the alternative care statewide maximum 
205.27  rate or the elderly waiver statewide maximum rate. 
205.28     (2) (c) Counties may negotiate individual service rates 
205.29  with vendors for actual costs up to the statewide maximum 
205.30  service rate limit. 
205.31     Sec. 13.  Minnesota Statutes 2002, section 256B.431, 
205.32  subdivision 2r, is amended to read: 
205.33     Subd. 2r.  [PAYMENT RESTRICTIONS ON LEAVE DAYS.] Effective 
205.34  July 1, 1993, the commissioner shall limit payment for leave 
205.35  days in a nursing facility to 79 percent of that nursing 
205.36  facility's total payment rate for the involved resident.  For 
206.1   services rendered on or after July 1, 2003, for facilities 
206.2   reimbursed under this section or section 256B.434, the 
206.3   commissioner shall limit payment for leave days in a nursing 
206.4   facility to 60 percent of that nursing facility's total payment 
206.5   rate for the involved resident. 
206.6      Sec. 14.  Minnesota Statutes 2002, section 256B.431, is 
206.7   amended by adding a subdivision to read: 
206.8      Subd. 2t.  [PAYMENT LIMITATION.] For services rendered on 
206.9   or after July 1, 2003, for facilities reimbursed under this 
206.10  section or section 256B.434, the Medicaid program shall only pay 
206.11  a co-payment during a Medicare-covered skilled nursing facility 
206.12  stay if the Medicare rate less the resident's co-payment 
206.13  responsibility is less than the Medicaid RUG-III case-mix 
206.14  payment rate.  The amount that shall be paid by the Medicaid 
206.15  program is equal to the amount by which the Medicaid RUG-III 
206.16  case-mix payment rate exceeds the Medicare rate less the 
206.17  co-payment responsibility.  Health plans paying for nursing home 
206.18  services under section 256B.69, subdivision 6a, may limit 
206.19  payments as allowed under this subdivision. 
206.20     Sec. 15.  Minnesota Statutes 2002, section 256B.431, 
206.21  subdivision 32, is amended to read: 
206.22     Subd. 32.  [PAYMENT DURING FIRST 90 DAYS.] (a) For rate 
206.23  years beginning on or after July 1, 2001, the total payment rate 
206.24  for a facility reimbursed under this section, section 256B.434, 
206.25  or any other section for the first 90 paid days after admission 
206.26  shall be: 
206.27     (1) for the first 30 paid days, the rate shall be 120 
206.28  percent of the facility's medical assistance rate for each case 
206.29  mix class; and 
206.30     (2) for the next 60 paid days after the first 30 paid days, 
206.31  the rate shall be 110 percent of the facility's medical 
206.32  assistance rate for each case mix class.; 
206.33     (b) (3) beginning with the 91st paid day after admission, 
206.34  the payment rate shall be the rate otherwise determined under 
206.35  this section, section 256B.434, or any other section.; and 
206.36     (c) (4) payments under this subdivision applies paragraph 
207.1   apply to admissions occurring on or after July 1, 2001, and 
207.2   before July 1, 2003, and to resident days occurring before July 
207.3   30, 2003. 
207.4      (b) For rate years beginning on or after July 1, 2003, the 
207.5   total payment rate for a facility reimbursed under this section, 
207.6   section 256B.434, or any other section shall be: 
207.7      (1) for the first 30 calendar days after admission, the 
207.8   rate shall be 120 percent of the facility's medical assistance 
207.9   rate for each RUG class; 
207.10     (2) beginning with the 31st calendar day after admission, 
207.11  the payment rate shall be the rate otherwise determined under 
207.12  this section, section 256B.434, or any other section; and 
207.13     (3) payments under this paragraph apply to admissions 
207.14  occurring on or after July 1, 2003. 
207.15     (c) Effective January 1, 2004, the enhanced rates under 
207.16  this subdivision shall not be allowed if a resident has resided 
207.17  during the previous 30 calendar days in: 
207.18     (1) the same nursing facility; 
207.19     (2) a nursing facility owned or operated by a related 
207.20  party; or 
207.21     (3) a nursing facility or part of a facility that closed. 
207.22     Sec. 16.  Minnesota Statutes 2002, section 256B.431, is 
207.23  amended by adding a subdivision to read: 
207.24     Subd. 38.  [NURSING HOME RATE INCREASES EFFECTIVE IN FISCAL 
207.25  YEAR 2004.] Effective June 1, 2003, the commissioner shall 
207.26  provide to each nursing home reimbursed under this section or 
207.27  section 256B.434, an increase in each case mix payment rate 
207.28  equal to the increase in the per-bed surcharge paid under 
207.29  section 256.9657, subdivision 1, paragraph (d), divided by 365 
207.30  and further divided by .90.  The increase shall not be subject 
207.31  to any annual percentage increase.  The 30-day advance notice 
207.32  requirement in section 256B.47, subdivision 2, shall not apply 
207.33  to rate increases resulting from this section.  The commissioner 
207.34  shall not adjust the rate increase under this subdivision unless 
207.35  an adjustment under section 256.9657, subdivision 1, paragraph 
207.36  (e), is greater than 1.5 percent of the surcharge amount. 
208.1      <b>[EFFECTIVE DATE.]</b> This section is effective May 31, 2003. 
208.2      Sec. 17.  Minnesota Statutes 2002, section 256B.434, 
208.3   subdivision 4, is amended to read: 
208.4      Subd. 4.  [ALTERNATE RATES FOR NURSING FACILITIES.] (a) For 
208.5   nursing facilities which have their payment rates determined 
208.6   under this section rather than section 256B.431, the 
208.7   commissioner shall establish a rate under this subdivision.  The 
208.8   nursing facility must enter into a written contract with the 
208.9   commissioner. 
208.10     (b) A nursing facility's case mix payment rate for the 
208.11  first rate year of a facility's contract under this section is 
208.12  the payment rate the facility would have received under section 
208.13  256B.431. 
208.14     (c) A nursing facility's case mix payment rates for the 
208.15  second and subsequent years of a facility's contract under this 
208.16  section are the previous rate year's contract payment rates plus 
208.17  an inflation adjustment and, for facilities reimbursed under 
208.18  this section or section 256B.431, an adjustment to include the 
208.19  cost of any increase in health department licensing fees for the 
208.20  facility taking effect on or after July 1, 2001.  The index for 
208.21  the inflation adjustment must be based on the change in the 
208.22  Consumer Price Index-All Items (United States City average) 
208.23  (CPI-U) forecasted by Data Resources, Inc. the commissioner of 
208.24  finance's national economic consultant, as forecasted in the 
208.25  fourth quarter of the calendar year preceding the rate year.  
208.26  The inflation adjustment must be based on the 12-month period 
208.27  from the midpoint of the previous rate year to the midpoint of 
208.28  the rate year for which the rate is being determined.  For the 
208.29  rate years beginning on July 1, 1999, July 1, 2000, July 1, 
208.30  2001, and July 1, 2002, July 1, 2003, and July 1, 2004, this 
208.31  paragraph shall apply only to the property-related payment rate, 
208.32  except that adjustments to include the cost of any increase in 
208.33  health department licensing fees taking effect on or after July 
208.34  1, 2001, shall be provided.  In determining the amount of the 
208.35  property-related payment rate adjustment under this paragraph, 
208.36  the commissioner shall determine the proportion of the 
209.1   facility's rates that are property-related based on the 
209.2   facility's most recent cost report. 
209.3      (d) The commissioner shall develop additional 
209.4   incentive-based payments of up to five percent above the 
209.5   standard contract rate for achieving outcomes specified in each 
209.6   contract.  The specified facility-specific outcomes must be 
209.7   measurable and approved by the commissioner.  The commissioner 
209.8   may establish, for each contract, various levels of achievement 
209.9   within an outcome.  After the outcomes have been specified the 
209.10  commissioner shall assign various levels of payment associated 
209.11  with achieving the outcome.  Any incentive-based payment cancels 
209.12  if there is a termination of the contract.  In establishing the 
209.13  specified outcomes and related criteria the commissioner shall 
209.14  consider the following state policy objectives: 
209.15     (1) improved cost effectiveness and quality of life as 
209.16  measured by improved clinical outcomes; 
209.17     (2) successful diversion or discharge to community 
209.18  alternatives; 
209.19     (3) decreased acute care costs; 
209.20     (4) improved consumer satisfaction; 
209.21     (5) the achievement of quality; or 
209.22     (6) any additional outcomes proposed by a nursing facility 
209.23  that the commissioner finds desirable. 
209.24     Sec. 18.  Minnesota Statutes 2002, section 256B.437, 
209.25  subdivision 6, is amended to read: 
209.26     Subd. 6.  [PLANNED CLOSURE RATE ADJUSTMENT.] (a) The 
209.27  commissioner of human services shall calculate the amount of the 
209.28  planned closure rate adjustment available under subdivision 3, 
209.29  paragraph (b), for up to 5,140 beds according to clauses (1) to 
209.30  (4): 
209.31     (1) the amount available is the net reduction of nursing 
209.32  facility beds multiplied by $2,080; 
209.33     (2) the total number of beds in the nursing facility or 
209.34  facilities receiving the planned closure rate adjustment must be 
209.35  identified; 
209.36     (3) capacity days are determined by multiplying the number 
210.1   determined under clause (2) by 365; and 
210.2      (4) the planned closure rate adjustment is the amount 
210.3   available in clause (1), divided by capacity days determined 
210.4   under clause (3). 
210.5      (b) A planned closure rate adjustment under this section is 
210.6   effective on the first day of the month following completion of 
210.7   closure of the facility designated for closure in the 
210.8   application and becomes part of the nursing facility's total 
210.9   operating payment rate. 
210.10     (c) Applicants may use the planned closure rate adjustment 
210.11  to allow for a property payment for a new nursing facility or an 
210.12  addition to an existing nursing facility or as an operating 
210.13  payment rate adjustment.  Applications approved under this 
210.14  subdivision are exempt from other requirements for moratorium 
210.15  exceptions under section 144A.073, subdivisions 2 and 3. 
210.16     (d) Upon the request of a closing facility, the 
210.17  commissioner must allow the facility a closure rate adjustment 
210.18  as provided under section 144A.161, subdivision 10. 
210.19     (e) A facility that has received a planned closure rate 
210.20  adjustment may reassign it to another facility that is under the 
210.21  same ownership at any time within three years of its effective 
210.22  date.  The amount of the adjustment shall be computed according 
210.23  to paragraph (a). 
210.24     (f) If the per bed dollar amount specified in paragraph 
210.25  (a), clause (1), is increased, the commissioner shall 
210.26  recalculate planned closure rate adjustments for facilities that 
210.27  delicense beds under this section on or after July 1, 2001, to 
210.28  reflect the increase in the per bed dollar amount.  The 
210.29  recalculated planned closure rate adjustment shall be effective 
210.30  from the date the per bed dollar amount is increased. 
210.31     (g) A 26-bed facility that voluntarily delicensed its beds 
210.32  in June 2002 for which no closure plan was submitted shall be 
210.33  permitted to assign a planned closure rate adjustment, effective 
210.34  30 days after final enactment and then delayed in accordance 
210.35  with section 144A.161, subdivision 10, to a 22-bed facility 
210.36  under common ownership.  The commissioner shall not rescind the 
211.1   planned closure rate adjustments that were assigned to the five 
211.2   nursing facilities with the lowest rates in the development 
211.3   region. 
211.4      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
211.5   following final enactment. 
211.6      Sec. 19.  Minnesota Statutes 2002, section 256I.02, is 
211.7   amended to read: 
211.8      256I.02 [PURPOSE.] 
211.9      The Group Residential Housing Act establishes a 
211.10  comprehensive system of rates and payments for persons who 
211.11  reside in a group residence the community and who meet the 
211.12  eligibility criteria under section 256I.04, subdivision 1. 
211.13     Sec. 20.  Minnesota Statutes 2002, section 256I.04, 
211.14  subdivision 3, is amended to read: 
211.15     Subd. 3.  [MORATORIUM ON THE DEVELOPMENT OF GROUP 
211.16  RESIDENTIAL HOUSING BEDS.] (a) County agencies shall not enter 
211.17  into agreements for new group residential housing beds with 
211.18  total rates in excess of the MSA equivalent rate except:  (1) 
211.19  for group residential housing establishments meeting the 
211.20  requirements of subdivision 2a, clause (2) with department 
211.21  approval; (2) for group residential housing establishments 
211.22  licensed under Minnesota Rules, parts 9525.0215 to 9525.0355, 
211.23  provided the facility is needed to meet the census reduction 
211.24  targets for persons with mental retardation or related 
211.25  conditions at regional treatment centers; (3) (2) to ensure 
211.26  compliance with the federal Omnibus Budget Reconciliation Act 
211.27  alternative disposition plan requirements for inappropriately 
211.28  placed persons with mental retardation or related conditions or 
211.29  mental illness; (4) (3) up to 80 beds in a single, specialized 
211.30  facility located in Hennepin county that will provide housing 
211.31  for chronic inebriates who are repetitive users of 
211.32  detoxification centers and are refused placement in emergency 
211.33  shelters because of their state of intoxication, and planning 
211.34  for the specialized facility must have been initiated before 
211.35  July 1, 1991, in anticipation of receiving a grant from the 
211.36  housing finance agency under section 462A.05, subdivision 20a, 
212.1   paragraph (b); (5) (4) notwithstanding the provisions of 
212.2   subdivision 2a, for up to 190 supportive housing units in Anoka, 
212.3   Dakota, Hennepin, or Ramsey county for homeless adults with a 
212.4   mental illness, a history of substance abuse, or human 
212.5   immunodeficiency virus or acquired immunodeficiency syndrome.  
212.6   For purposes of this section, "homeless adult" means a person 
212.7   who is living on the street or in a shelter or discharged from a 
212.8   regional treatment center, community hospital, or residential 
212.9   treatment program and has no appropriate housing available and 
212.10  lacks the resources and support necessary to access appropriate 
212.11  housing.  At least 70 percent of the supportive housing units 
212.12  must serve homeless adults with mental illness, substance abuse 
212.13  problems, or human immunodeficiency virus or acquired 
212.14  immunodeficiency syndrome who are about to be or, within the 
212.15  previous six months, has been discharged from a regional 
212.16  treatment center, or a state-contracted psychiatric bed in a 
212.17  community hospital, or a residential mental health or chemical 
212.18  dependency treatment program.  If a person meets the 
212.19  requirements of subdivision 1, paragraph (a), and receives a 
212.20  federal or state housing subsidy, the group residential housing 
212.21  rate for that person is limited to the supplementary rate under 
212.22  section 256I.05, subdivision 1a, and is determined by 
212.23  subtracting the amount of the person's countable income that 
212.24  exceeds the MSA equivalent rate from the group residential 
212.25  housing supplementary rate.  A resident in a demonstration 
212.26  project site who no longer participates in the demonstration 
212.27  program shall retain eligibility for a group residential housing 
212.28  payment in an amount determined under section 256I.06, 
212.29  subdivision 8, using the MSA equivalent rate.  Service funding 
212.30  under section 256I.05, subdivision 1a, will end June 30, 1997, 
212.31  if federal matching funds are available and the services can be 
212.32  provided through a managed care entity.  If federal matching 
212.33  funds are not available, then service funding will continue 
212.34  under section 256I.05, subdivision 1a; or (6) for group 
212.35  residential housing beds in settings meeting the requirements of 
212.36  subdivision 2a, clauses (1) and (3), which are used exclusively 
213.1   for recipients receiving home and community-based waiver 
213.2   services under sections 256B.0915, 256B.092, subdivision 5, 
213.3   256B.093, and 256B.49, and who resided in a nursing facility for 
213.4   the six months immediately prior to the month of entry into the 
213.5   group residential housing setting.  The group residential 
213.6   housing rate for these beds must be set so that the monthly 
213.7   group residential housing payment for an individual occupying 
213.8   the bed when combined with the nonfederal share of services 
213.9   delivered under the waiver for that person does not exceed the 
213.10  nonfederal share of the monthly medical assistance payment made 
213.11  for the person to the nursing facility in which the person 
213.12  resided prior to entry into the group residential housing 
213.13  establishment.  The rate may not exceed the MSA equivalent rate 
213.14  plus $426.37 for any case. 
213.15     (b) A county agency may enter into a group residential 
213.16  housing agreement for beds with rates in excess of the MSA 
213.17  equivalent rate in addition to those currently covered under a 
213.18  group residential housing agreement if the additional beds are 
213.19  only a replacement of beds with rates in excess of the MSA 
213.20  equivalent rate which have been made available due to closure of 
213.21  a setting, a change of licensure or certification which removes 
213.22  the beds from group residential housing payment, or as a result 
213.23  of the downsizing of a group residential housing setting.  The 
213.24  transfer of available beds from one county to another can only 
213.25  occur by the agreement of both counties. 
213.26     Sec. 21.  Minnesota Statutes 2002, section 256I.05, 
213.27  subdivision 1, is amended to read: 
213.28     Subdivision 1.  [MAXIMUM RATES.] (a) Monthly room and board 
213.29  rates negotiated by a county agency for a recipient living in 
213.30  group residential housing must not exceed the MSA equivalent 
213.31  rate specified under section 256I.03, subdivision 5,. with the 
213.32  exception that a county agency may negotiate a supplementary 
213.33  room and board rate that exceeds the MSA equivalent rate for 
213.34  recipients of waiver services under title XIX of the Social 
213.35  Security Act.  This exception is subject to the following 
213.36  conditions: 
214.1      (1) the setting is licensed by the commissioner of human 
214.2   services under Minnesota Rules, parts 9555.5050 to 9555.6265; 
214.3      (2) the setting is not the primary residence of the license 
214.4   holder and in which the license holder is not the primary 
214.5   caregiver; and 
214.6      (3) the average supplementary room and board rate in a 
214.7   county for a calendar year may not exceed the average 
214.8   supplementary room and board rate for that county in effect on 
214.9   January 1, 2000.  For calendar years beginning on or after 
214.10  January 1, 2002, within the limits of appropriations 
214.11  specifically for this purpose, the commissioner shall increase 
214.12  each county's supplemental room and board rate average on an 
214.13  annual basis by a factor consisting of the percentage change in 
214.14  the Consumer Price Index-All items, United States city average 
214.15  (CPI-U) for that calendar year compared to the preceding 
214.16  calendar year as forecasted by Data Resources, Inc., in the 
214.17  third quarter of the preceding calendar year.  If a county has 
214.18  not negotiated supplementary room and board rates for any 
214.19  facilities located in the county as of January 1, 2000, or has 
214.20  an average supplemental room and board rate under $100 per 
214.21  person as of January 1, 2000, it may submit a supplementary room 
214.22  and board rate request with budget information for a facility to 
214.23  the commissioner for approval. 
214.24  The county agency may at any time negotiate a higher or lower 
214.25  room and board rate than the average supplementary room and 
214.26  board rate. 
214.27     (b) Notwithstanding paragraph (a), clause (3), county 
214.28  agencies may negotiate a supplementary room and board rate that 
214.29  exceeds the MSA equivalent rate by up to $426.37 for up to five 
214.30  facilities, serving not more than 20 individuals in total, that 
214.31  were established to replace an intermediate care facility for 
214.32  persons with mental retardation and related conditions located 
214.33  in the city of Roseau that became uninhabitable due to flood 
214.34  damage in June 2002. 
214.35     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004, 
214.36  or upon receipt of federal approval of waiver amendment, 
215.1   whichever is later. 
215.2      Sec. 22.  Minnesota Statutes 2002, section 256I.05, 
215.3   subdivision 1a, is amended to read: 
215.4      Subd. 1a.  [SUPPLEMENTARY SERVICE RATES.] (a) Subject to 
215.5   the provisions of section 256I.04, subdivision 3, in addition to 
215.6   the room and board rate specified in subdivision 1, the county 
215.7   agency may negotiate a payment not to exceed $426.37 for other 
215.8   services necessary to provide room and board provided by the 
215.9   group residence if the residence is licensed by or registered by 
215.10  the department of health, or licensed by the department of human 
215.11  services to provide services in addition to room and board, and 
215.12  if the provider of services is not also concurrently receiving 
215.13  funding for services for a recipient under a home and 
215.14  community-based waiver under title XIX of the Social Security 
215.15  Act; or funding from the medical assistance program under 
215.16  section 256B.0627, subdivision 4, for personal care services for 
215.17  residents in the setting; or residing in a setting which 
215.18  receives funding under Minnesota Rules, parts 9535.2000 to 
215.19  9535.3000.  If funding is available for other necessary services 
215.20  through a home and community-based waiver, or personal care 
215.21  services under section 256B.0627, subdivision 4, then the GRH 
215.22  rate is limited to the rate set in subdivision 1.  Unless 
215.23  otherwise provided in law, in no case may the supplementary 
215.24  service rate plus the supplementary room and board rate exceed 
215.25  $426.37.  The registration and licensure requirement does not 
215.26  apply to establishments which are exempt from state licensure 
215.27  because they are located on Indian reservations and for which 
215.28  the tribe has prescribed health and safety requirements.  
215.29  Service payments under this section may be prohibited under 
215.30  rules to prevent the supplanting of federal funds with state 
215.31  funds.  The commissioner shall pursue the feasibility of 
215.32  obtaining the approval of the Secretary of Health and Human 
215.33  Services to provide home and community-based waiver services 
215.34  under title XIX of the Social Security Act for residents who are 
215.35  not eligible for an existing home and community-based waiver due 
215.36  to a primary diagnosis of mental illness or chemical dependency 
216.1   and shall apply for a waiver if it is determined to be 
216.2   cost-effective.  
216.3      (b) The commissioner is authorized to make cost-neutral 
216.4   transfers from the GRH fund for beds under this section to other 
216.5   funding programs administered by the department after 
216.6   consultation with the county or counties in which the affected 
216.7   beds are located.  The commissioner may also make cost-neutral 
216.8   transfers from the GRH fund to county human service agencies for 
216.9   beds permanently removed from the GRH census under a plan 
216.10  submitted by the county agency and approved by the 
216.11  commissioner.  The commissioner shall report the amount of any 
216.12  transfers under this provision annually to the legislature. 
216.13     (c) The provisions of paragraph (b) do not apply to a 
216.14  facility that has its reimbursement rate established under 
216.15  section 256B.431, subdivision 4, paragraph (c). 
216.16     Sec. 23.  Minnesota Statutes 2002, section 256I.05, 
216.17  subdivision 7c, is amended to read: 
216.18     Subd. 7c.  [DEMONSTRATION PROJECT.] The commissioner is 
216.19  authorized to pursue a demonstration project under federal food 
216.20  stamp regulation for the purpose of gaining federal 
216.21  reimbursement of food and nutritional costs currently paid by 
216.22  the state group residential housing program.  The commissioner 
216.23  shall seek approval no later than January 1, 2004.  Any 
216.24  reimbursement received is nondedicated revenue to the general 
216.25  fund. 
216.26     Sec. 24.  [REVISOR'S INSTRUCTION.] 
216.27     For sections in Minnesota Statutes and Minnesota Rules 
216.28  affected by the repealed sections in this article, the revisor 
216.29  shall delete internal cross-references where appropriate and 
216.30  make changes necessary to correct the punctuation, grammar, or 
216.31  structure of the remaining text and preserve its meaning. 
216.32     Sec. 25.  [REPEALER.] 
216.33     Minnesota Statutes 2002, sections 256B.0917; and 256B.437, 
216.34  subdivision 2, are repealed effective July 1, 2003. 
216.35                             ARTICLE 5
216.36           CONTINUING CARE FOR PERSONS WITH DISABILITIES
217.1      Section 1.  Minnesota Statutes 2002, section 252.32, 
217.2   subdivision 1, is amended to read: 
217.3      Subdivision 1.  [PROGRAM ESTABLISHED.] In accordance with 
217.4   state policy established in section 256F.01 that all children 
217.5   are entitled to live in families that offer safe, nurturing, 
217.6   permanent relationships, and that public services be directed 
217.7   toward preventing the unnecessary separation of children from 
217.8   their families, and because many families who have children with 
217.9   mental retardation or related conditions disabilities have 
217.10  special needs and expenses that other families do not have, the 
217.11  commissioner of human services shall establish a program to 
217.12  assist families who have dependents dependent children with 
217.13  mental retardation or related conditions disabilities living in 
217.14  their home.  The program shall make support grants available to 
217.15  the families. 
217.16     Sec. 2.  Minnesota Statutes 2002, section 252.32, 
217.17  subdivision 1a, is amended to read: 
217.18     Subd. 1a.  [SUPPORT GRANTS.] (a) Provision of support 
217.19  grants must be limited to families who require support and whose 
217.20  dependents are under the age of 22 and who have mental 
217.21  retardation or who have a related condition 21 and who have been 
217.22  determined by a screening team established certified disabled 
217.23  under section 256B.092 to be at risk of 
217.24  institutionalization 256B.055, subdivision 12, paragraphs (a), 
217.25  (b), (c), (d), and (e).  Families who are receiving home and 
217.26  community-based waivered services for persons with mental 
217.27  retardation or related conditions are not eligible for support 
217.28  grants. 
217.29     Families receiving grants who will be receiving home and 
217.30  community-based waiver services for persons with mental 
217.31  retardation or a related condition for their family member 
217.32  within the grant year, and who have ongoing payments for 
217.33  environmental or vehicle modifications which have been approved 
217.34  by the county as a grant expense and would have qualified for 
217.35  payment under this waiver may receive a onetime grant payment 
217.36  from the commissioner to reduce or eliminate the principal of 
218.1   the remaining debt for the modifications, not to exceed the 
218.2   maximum amount allowable for the remaining years of eligibility 
218.3   for a family support grant.  The commissioner is authorized to 
218.4   use up to $20,000 annually from the grant appropriation for this 
218.5   purpose.  Any amount unexpended at the end of the grant year 
218.6   shall be allocated by the commissioner in accordance with 
218.7   subdivision 3a, paragraph (b), clause (2).  Families whose 
218.8   annual adjusted gross income is $60,000 or more are not eligible 
218.9   for support grants except in cases where extreme hardship is 
218.10  demonstrated.  Beginning in state fiscal year 1994, the 
218.11  commissioner shall adjust the income ceiling annually to reflect 
218.12  the projected change in the average value in the United States 
218.13  Department of Labor Bureau of Labor Statistics consumer price 
218.14  index (all urban) for that year. 
218.15     (b) Support grants may be made available as monthly subsidy 
218.16  grants and lump sum grants. 
218.17     (c) Support grants may be issued in the form of cash, 
218.18  voucher, and direct county payment to a vendor.  
218.19     (d) Applications for the support grant shall be made by the 
218.20  legal guardian to the county social service agency.  The 
218.21  application shall specify the needs of the families, the form of 
218.22  the grant requested by the families, and that the families have 
218.23  agreed to use the support grant for items and services within 
218.24  the designated reimbursable expense categories and 
218.25  recommendations of the county to be reimbursed.  
218.26     (e) Families who were receiving subsidies on the date of 
218.27  implementation of the $60,000 income limit in paragraph (a) 
218.28  continue to be eligible for a family support grant until 
218.29  December 31, 1991, if all other eligibility criteria are met.  
218.30  After December 31, 1991, these families are eligible for a grant 
218.31  in the amount of one-half the grant they would otherwise 
218.32  receive, for as long as they remain eligible under other 
218.33  eligibility criteria.  
218.34     Sec. 3.  Minnesota Statutes 2002, section 252.32, 
218.35  subdivision 3, is amended to read: 
218.36     Subd. 3.  [AMOUNT OF SUPPORT GRANT; USE.] Support grant 
219.1   amounts shall be determined by the county social service 
219.2   agency.  Each service Services and item items purchased with a 
219.3   support grant must: 
219.4      (1) be over and above the normal costs of caring for the 
219.5   dependent if the dependent did not have a disability; 
219.6      (2) be directly attributable to the dependent's disabling 
219.7   condition; and 
219.8      (3) enable the family to delay or prevent the out-of-home 
219.9   placement of the dependent. 
219.10     The design and delivery of services and items purchased 
219.11  under this section must suit the dependent's chronological age 
219.12  and be provided in the least restrictive environment possible, 
219.13  consistent with the needs identified in the individual service 
219.14  plan. 
219.15     Items and services purchased with support grants must be 
219.16  those for which there are no other public or private funds 
219.17  available to the family.  Fees assessed to parents for health or 
219.18  human services that are funded by federal, state, or county 
219.19  dollars are not reimbursable through this program. 
219.20     In approving or denying applications, the county shall 
219.21  consider the following factors:  
219.22     (1) the extent and areas of the functional limitations of 
219.23  the disabled child; 
219.24     (2) the degree of need in the home environment for 
219.25  additional support; and 
219.26     (3) the potential effectiveness of the grant to maintain 
219.27  and support the person in the family environment. 
219.28     The maximum monthly grant amount shall be $250 per eligible 
219.29  dependent, or $3,000 per eligible dependent per state fiscal 
219.30  year, within the limits of available funds.  The county social 
219.31  service agency may consider the dependent's supplemental 
219.32  security income in determining the amount of the support grant.  
219.33  The county social service agency may exceed $3,000 per state 
219.34  fiscal year per eligible dependent for emergency circumstances 
219.35  in cases where exceptional resources of the family are required 
219.36  to meet the health, welfare-safety needs of the child.  
220.1      County social service agencies shall continue to provide 
220.2   funds to families receiving state grants on June 30, 1997, if 
220.3   eligibility criteria continue to be met.  Any adjustments to 
220.4   their monthly grant amount must be based on the needs of the 
220.5   family and funding availability. 
220.6      Sec. 4.  Minnesota Statutes 2002, section 252.32, 
220.7   subdivision 3c, is amended to read: 
220.8      Subd. 3c.  [COUNTY BOARD RESPONSIBILITIES.] County boards 
220.9   receiving funds under this section shall:  
220.10     (1) determine the needs of families for services in 
220.11  accordance with section 256B.092 or 256E.08 and any rules 
220.12  adopted under those sections submit a plan to the department for 
220.13  the management of the family support grant program.  The plan 
220.14  must include the projected number of families the county will 
220.15  serve and policies and procedures for:  
220.16     (i) identifying potential families for the program; 
220.17     (ii) grant distribution; 
220.18     (iii) waiting list procedures; and 
220.19     (iv) prioritization of families to receive grants; 
220.20     (2) determine the eligibility of all persons proposed for 
220.21  program participation; 
220.22     (3) approve a plan for items and services to be reimbursed 
220.23  and inform families of the county's approval decision; 
220.24     (4) issue support grants directly to, or on behalf of, 
220.25  eligible families; 
220.26     (5) inform recipients of their right to appeal under 
220.27  subdivision 3e; 
220.28     (6) submit quarterly financial reports under subdivision 3b 
220.29  and indicate on the screening documents the annual grant level 
220.30  for each family, the families denied grants, and the families 
220.31  eligible but waiting for funding; and 
220.32     (7) coordinate services with other programs offered by the 
220.33  county. 
220.34     Sec. 5.  Minnesota Statutes 2002, section 256.476, 
220.35  subdivision 1, is amended to read: 
220.36     Subdivision 1.  [PURPOSE AND GOALS.] The commissioner of 
221.1   human services shall establish a consumer support grant program 
221.2   for individuals with functional limitations and their families 
221.3   who wish to purchase and secure their own supports.  The 
221.4   commissioner and local agencies shall jointly develop an 
221.5   implementation plan which must include a way to resolve the 
221.6   issues related to county liability.  The program shall: 
221.7      (1) make support grants or exception grants described in 
221.8   subdivision 11 available to individuals or families as an 
221.9   effective alternative to existing programs and services, such as 
221.10  the developmental disability family support program, personal 
221.11  care attendant services, home health aide services, and private 
221.12  duty nursing services; 
221.13     (2) provide consumers more control, flexibility, and 
221.14  responsibility over their services and supports; 
221.15     (3) promote local program management and decision making; 
221.16  and 
221.17     (4) encourage the use of informal and typical community 
221.18  supports. 
221.19     Sec. 6.  Minnesota Statutes 2002, section 256.476, 
221.20  subdivision 3, is amended to read: 
221.21     Subd. 3.  [ELIGIBILITY TO APPLY FOR GRANTS.] (a) A person 
221.22  is eligible to apply for a consumer support grant if the person 
221.23  meets all of the following criteria: 
221.24     (1) the person is eligible for and has been approved to 
221.25  receive services under medical assistance as determined under 
221.26  sections 256B.055 and 256B.056 or the person has been approved 
221.27  to receive a grant under the developmental disability family 
221.28  support program under section 252.32; 
221.29     (2) the person is able to direct and purchase the person's 
221.30  own care and supports, or the person has a family member, legal 
221.31  representative, or other authorized representative who can 
221.32  purchase and arrange supports on the person's behalf; 
221.33     (3) the person has functional limitations, requires ongoing 
221.34  supports to live in the community, and is at risk of or would 
221.35  continue institutionalization without such supports; and 
221.36     (4) the person will live in a home.  For the purpose of 
222.1   this section, "home" means the person's own home or home of a 
222.2   person's family member.  These homes are natural home settings 
222.3   and are not licensed by the department of health or human 
222.4   services. 
222.5      (b) Persons may not concurrently receive a consumer support 
222.6   grant if they are: 
222.7      (1) receiving home and community-based services under 
222.8   United States Code, title 42, section 1396h(c); personal care 
222.9   attendant and home health aide services, or private duty nursing 
222.10  under section 256B.0625; a developmental disability family 
222.11  support grant; or alternative care services under section 
222.12  256B.0913; or 
222.13     (2) residing in an institutional or congregate care setting.
222.14     (c) A person or person's family receiving a consumer 
222.15  support grant shall not be charged a fee or premium by a local 
222.16  agency for participating in the program.  
222.17     (d) The commissioner may limit the participation of 
222.18  recipients of services from federal waiver programs in the 
222.19  consumer support grant program if the participation of these 
222.20  individuals will result in an increase in the cost to the 
222.21  state.  Individuals receiving home and community-based waivers 
222.22  under United States Code, title 42, section 1396h(c), are not 
222.23  eligible for the consumer support grant. 
222.24     (e) The commissioner shall establish a budgeted 
222.25  appropriation each fiscal year for the consumer support grant 
222.26  program.  The number of individuals participating in the program 
222.27  will be adjusted so the total amount allocated to counties does 
222.28  not exceed the amount of the budgeted appropriation.  The 
222.29  budgeted appropriation will be adjusted annually to accommodate 
222.30  changes in demand for the consumer support grants. 
222.31     Sec. 7.  Minnesota Statutes 2002, section 256.476, 
222.32  subdivision 4, is amended to read: 
222.33     Subd. 4.  [SUPPORT GRANTS; CRITERIA AND LIMITATIONS.] (a) A 
222.34  county board may choose to participate in the consumer support 
222.35  grant program.  If a county has not chosen to participate by 
222.36  July 1, 2002, the commissioner shall contract with another 
223.1   county or other entity to provide access to residents of the 
223.2   nonparticipating county who choose the consumer support grant 
223.3   option.  The commissioner shall notify the county board in a 
223.4   county that has declined to participate of the commissioner's 
223.5   intent to enter into a contract with another county or other 
223.6   entity at least 30 days in advance of entering into the 
223.7   contract.  The local agency shall establish written procedures 
223.8   and criteria to determine the amount and use of support grants.  
223.9   These procedures must include, at least, the availability of 
223.10  respite care, assistance with daily living, and adaptive aids.  
223.11  The local agency may establish monthly or annual maximum amounts 
223.12  for grants and procedures where exceptional resources may be 
223.13  required to meet the health and safety needs of the person on a 
223.14  time-limited basis, however, the total amount awarded to each 
223.15  individual may not exceed the limits established in subdivision 
223.16  11. 
223.17     (b) Support grants to a person or a person's family will be 
223.18  provided through a monthly subsidy payment and be in the form of 
223.19  cash, voucher, or direct county payment to vendor.  Support 
223.20  grant amounts must be determined by the local agency.  Each 
223.21  service and item purchased with a support grant must meet all of 
223.22  the following criteria:  
223.23     (1) it must be over and above the normal cost of caring for 
223.24  the person if the person did not have functional limitations; 
223.25     (2) it must be directly attributable to the person's 
223.26  functional limitations; 
223.27     (3) it must enable the person or the person's family to 
223.28  delay or prevent out-of-home placement of the person; and 
223.29     (4) it must be consistent with the needs identified in the 
223.30  service plan agreement, when applicable. 
223.31     (c) Items and services purchased with support grants must 
223.32  be those for which there are no other public or private funds 
223.33  available to the person or the person's family.  Fees assessed 
223.34  to the person or the person's family for health and human 
223.35  services are not reimbursable through the grant. 
223.36     (d) In approving or denying applications, the local agency 
224.1   shall consider the following factors:  
224.2      (1) the extent and areas of the person's functional 
224.3   limitations; 
224.4      (2) the degree of need in the home environment for 
224.5   additional support; and 
224.6      (3) the potential effectiveness of the grant to maintain 
224.7   and support the person in the family environment or the person's 
224.8   own home. 
224.9      (e) At the time of application to the program or screening 
224.10  for other services, the person or the person's family shall be 
224.11  provided sufficient information to ensure an informed choice of 
224.12  alternatives by the person, the person's legal representative, 
224.13  if any, or the person's family.  The application shall be made 
224.14  to the local agency and shall specify the needs of the person 
224.15  and family, the form and amount of grant requested, the items 
224.16  and services to be reimbursed, and evidence of eligibility for 
224.17  medical assistance. 
224.18     (f) Upon approval of an application by the local agency and 
224.19  agreement on a support plan for the person or person's family, 
224.20  the local agency shall make grants to the person or the person's 
224.21  family.  The grant shall be in an amount for the direct costs of 
224.22  the services or supports outlined in the service agreement.  
224.23     (g) Reimbursable costs shall not include costs for 
224.24  resources already available, such as special education classes, 
224.25  day training and habilitation, case management, other services 
224.26  to which the person is entitled, medical costs covered by 
224.27  insurance or other health programs, or other resources usually 
224.28  available at no cost to the person or the person's family. 
224.29     (h) The state of Minnesota, the county boards participating 
224.30  in the consumer support grant program, or the agencies acting on 
224.31  behalf of the county boards in the implementation and 
224.32  administration of the consumer support grant program shall not 
224.33  be liable for damages, injuries, or liabilities sustained 
224.34  through the purchase of support by the individual, the 
224.35  individual's family, or the authorized representative under this 
224.36  section with funds received through the consumer support grant 
225.1   program.  Liabilities include but are not limited to:  workers' 
225.2   compensation liability, the Federal Insurance Contributions Act 
225.3   (FICA), or the Federal Unemployment Tax Act (FUTA).  For 
225.4   purposes of this section, participating county boards and 
225.5   agencies acting on behalf of county boards are exempt from the 
225.6   provisions of section 268.04. 
225.7      Sec. 8.  Minnesota Statutes 2002, section 256.476, 
225.8   subdivision 5, is amended to read: 
225.9      Subd. 5.  [REIMBURSEMENT, ALLOCATIONS, AND REPORTING.] (a) 
225.10  For the purpose of transferring persons to the consumer support 
225.11  grant program from specific programs or services, such as the 
225.12  developmental disability family support program and personal 
225.13  care assistant services, home health aide services, or private 
225.14  duty nursing services, the amount of funds transferred by the 
225.15  commissioner between the developmental disability family support 
225.16  program account, the medical assistance account, or the consumer 
225.17  support grant account shall be based on each county's 
225.18  participation in transferring persons to the consumer support 
225.19  grant program from those programs and services. 
225.20     (b) At the beginning of each fiscal year, county 
225.21  allocations for consumer support grants shall be based on: 
225.22     (1) the number of persons to whom the county board expects 
225.23  to provide consumer supports grants; 
225.24     (2) their eligibility for current program and services; 
225.25     (3) the amount of nonfederal dollars allowed under 
225.26  subdivision 11; and 
225.27     (4) projected dates when persons will start receiving 
225.28  grants.  County allocations shall be adjusted periodically by 
225.29  the commissioner based on the actual transfer of persons or 
225.30  service openings, and the nonfederal dollars associated with 
225.31  those persons or service openings, to the consumer support grant 
225.32  program. 
225.33     (c) The amount of funds transferred by the commissioner 
225.34  from the medical assistance account for an individual may be 
225.35  changed if it is determined by the county or its agent that the 
225.36  individual's need for support has changed. 
226.1      (d) The authority to utilize funds transferred to the 
226.2   consumer support grant account for the purposes of implementing 
226.3   and administering the consumer support grant program will not be 
226.4   limited or constrained by the spending authority provided to the 
226.5   program of origination. 
226.6      (e) The commissioner may use up to five percent of each 
226.7   county's allocation, as adjusted, for payments for 
226.8   administrative expenses, to be paid as a proportionate addition 
226.9   to reported direct service expenditures. 
226.10     (f) The county allocation for each individual or 
226.11  individual's family cannot exceed the amount allowed under 
226.12  subdivision 11. 
226.13     (g) The commissioner may recover, suspend, or withhold 
226.14  payments if the county board, local agency, or grantee does not 
226.15  comply with the requirements of this section. 
226.16     (h) Grant funds unexpended by consumers shall return to the 
226.17  state once a year.  The annual return of unexpended grant funds 
226.18  shall occur in the quarter following the end of the state fiscal 
226.19  year. 
226.20     Sec. 9.  Minnesota Statutes 2002, section 256.476, 
226.21  subdivision 11, is amended to read: 
226.22     Subd. 11.  [CONSUMER SUPPORT GRANT PROGRAM AFTER JULY 1, 
226.23  2001.] (a) Effective July 1, 2001, the commissioner shall 
226.24  allocate consumer support grant resources to serve additional 
226.25  individuals based on a review of Medicaid authorization and 
226.26  payment information of persons eligible for a consumer support 
226.27  grant from the most recent fiscal year.  The commissioner shall 
226.28  use the following methodology to calculate maximum allowable 
226.29  monthly consumer support grant levels: 
226.30     (1) For individuals whose program of origination is medical 
226.31  assistance home care under section 256B.0627, the maximum 
226.32  allowable monthly grant levels are calculated by: 
226.33     (i) determining the nonfederal share of the average service 
226.34  authorization for each home care rating; 
226.35     (ii) calculating the overall ratio of actual payments to 
226.36  service authorizations by program; 
227.1      (iii) applying the overall ratio to the average service 
227.2   authorization level of each home care rating; 
227.3      (iv) adjusting the result for any authorized rate increases 
227.4   provided by the legislature; and 
227.5      (v) adjusting the result for the average monthly 
227.6   utilization per recipient; and. 
227.7      (2) for persons with programs of origination other than the 
227.8   program described in clause (1), the maximum grant level for an 
227.9   individual shall not exceed the total of the nonfederal dollars 
227.10  expended on the individual by the program of origination The 
227.11  commissioner may review and evaluate the methodology to reflect 
227.12  changes in the home care programs overall ratio of actual 
227.13  payments to service authorizations. 
227.14     (b) Effective July 1, 2003, persons previously receiving 
227.15  consumer support exception grants prior to July 1, 2001, may 
227.16  continue to receive the grant amount established prior to July 
227.17  1, 2001 will have their grants calculated using the methodology 
227.18  in paragraph (a), clause (1).  If a person currently receiving 
227.19  an exception grant wishes to have their home care rating 
227.20  reevaluated, they may request an assessment as defined in 
227.21  section 256B.0627, subdivision 1, paragraph (b). 
227.22     (c) The commissioner may provide up to 200 exception 
227.23  grants, including grants in use under paragraph (b).  Eligible 
227.24  persons shall be provided an exception grant in priority order 
227.25  based upon the date of the commissioner's receipt of the county 
227.26  request.  The maximum allowable grant level for an exception 
227.27  grant shall be based upon the nonfederal share of the average 
227.28  service authorization from the most recent fiscal year for each 
227.29  home care rating category.  The amount of each exception grant 
227.30  shall be based upon the commissioner's determination of the 
227.31  nonfederal dollars that would have been expended if services had 
227.32  been available for an individual who is unable to obtain the 
227.33  support needed from the program of origination due to the 
227.34  unavailability of qualified service providers at the time or the 
227.35  location where the supports are needed. 
227.36     Sec. 10.  Minnesota Statutes 2002, section 256.9657, is 
228.1   amended by adding a subdivision to read: 
228.2      Subd. 3b.  [ICF/MR LICENSE SURCHARGE.] Effective July 1, 
228.3   2003, each nonstate-operated facility as defined under section 
228.4   256B.501, subdivision 1, shall pay to the commissioner an annual 
228.5   surcharge according to the schedule in subdivision 4, paragraph 
228.6   (d).  The annual surcharge shall be $1,040 per licensed bed.  If 
228.7   the number of licensed beds is reduced, the surcharge shall be 
228.8   based on the number of remaining licensed beds the second month 
228.9   following the receipt of timely notice by the commissioner of 
228.10  human services that beds have been delicensed.  The facility 
228.11  must notify the commissioner of health in writing when beds are 
228.12  delicensed.  The commissioner of health must notify the 
228.13  commissioner of human services within ten working days after 
228.14  receiving written notification.  If the notification is received 
228.15  by the commissioner of human services by the 15th of the month, 
228.16  the invoice for the second following month must be reduced to 
228.17  recognize the delicensing of beds.  The commissioner may reduce, 
228.18  and may subsequently restore, the surcharge under this 
228.19  subdivision based on the commissioner's determination of a 
228.20  permissible surcharge. 
228.21     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
228.22  following final enactment. 
228.23     Sec. 11.  Minnesota Statutes 2002, section 256.9657, 
228.24  subdivision 4, is amended to read: 
228.25     Subd. 4.  [PAYMENTS INTO THE ACCOUNT.] (a) Payments to the 
228.26  commissioner under subdivisions 1 to 3 must be paid in monthly 
228.27  installments due on the 15th of the month beginning October 15, 
228.28  1992.  The monthly payment must be equal to the annual surcharge 
228.29  divided by 12.  Payments to the commissioner under subdivisions 
228.30  2 and 3 for fiscal year 1993 must be based on calendar year 1990 
228.31  revenues.  Effective July 1 of each year, beginning in 1993, 
228.32  payments under subdivisions 2 and 3 must be based on revenues 
228.33  earned in the second previous calendar year. 
228.34     (b) Effective October 1, 1995, and each October 1 
228.35  thereafter, the payments in subdivisions 2 and 3 must be based 
228.36  on revenues earned in the previous calendar year. 
229.1      (c) If the commissioner of health does not provide by 
229.2   August 15 of any year data needed to update the base year for 
229.3   the hospital and health maintenance organization surcharges, the 
229.4   commissioner of human services may estimate base year revenue 
229.5   and use that estimate for the purposes of this section until 
229.6   actual data is provided by the commissioner of health. 
229.7      (d) Payments to the commissioner under subdivision 3b must 
229.8   be paid in monthly installments due on the 15th of the month 
229.9   beginning July 15, 2003.  The monthly payment must be equal to 
229.10  the annual surcharge divided by 12. 
229.11     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
229.12  following final enactment. 
229.13     Sec. 12.  Minnesota Statutes 2002, section 256B.0621, 
229.14  subdivision 4, is amended to read: 
229.15     Subd. 4.  [RELOCATION TARGETED CASE MANAGEMENT PROVIDER 
229.16  QUALIFICATIONS.] The following qualifications and certification 
229.17  standards must be met by providers of relocation targeted case 
229.18  management: 
229.19     (a) The commissioner must certify each provider of 
229.20  relocation targeted case management before enrollment.  The 
229.21  certification process shall examine the provider's ability to 
229.22  meet the requirements in this subdivision and other federal and 
229.23  state requirements of this service.  A certified relocation 
229.24  targeted case management provider may subcontract with another 
229.25  provider to deliver relocation targeted case management 
229.26  services.  Subcontracted providers must demonstrate the ability 
229.27  to provide the services outlined in subdivision 6. 
229.28     (b) (a) A relocation targeted case management provider is 
229.29  an enrolled medical assistance provider who is determined by the 
229.30  commissioner to have all of the following characteristics: 
229.31     (1) the legal authority to provide public welfare under 
229.32  sections 393.01, subdivision 7; and 393.07; or a federally 
229.33  recognized Indian tribe; 
229.34     (2) the demonstrated capacity and experience to provide the 
229.35  components of case management to coordinate and link community 
229.36  resources needed by the eligible population; 
230.1      (3) the administrative capacity and experience to serve the 
230.2   target population for whom it will provide services and ensure 
230.3   quality of services under state and federal requirements; 
230.4      (4) the legal authority to provide complete investigative 
230.5   and protective services under section 626.556, subdivision 10; 
230.6   and child welfare and foster care services under section 393.07, 
230.7   subdivisions 1 and 2; or a federally recognized Indian tribe; 
230.8      (5) a financial management system that provides accurate 
230.9   documentation of services and costs under state and federal 
230.10  requirements; and 
230.11     (6) the capacity to document and maintain individual case 
230.12  records under state and federal requirements. 
230.13     (b) A provider of targeted case management under section 
230.14  256B.0625, subdivision 20, may be deemed a certified provider of 
230.15  relocation targeted case management. 
230.16     (c) A relocation targeted case management provider may 
230.17  subcontract with another provider to deliver relocation targeted 
230.18  case management services.  Subcontracted providers must 
230.19  demonstrate the ability to provide the services outlined in 
230.20  subdivision 6, and have a procedure in place that notifies the 
230.21  recipient and the recipient's legal representative of any 
230.22  conflict of interest if the contracted targeted case management 
230.23  provider also provides, or will provide, the recipient's 
230.24  services and supports.  Contracted providers must provide 
230.25  information on all conflicts of interest and obtain the 
230.26  recipient's informed consent or provide the recipient with 
230.27  alternatives. 
230.28     Sec. 13.  Minnesota Statutes 2002, section 256B.0625, 
230.29  subdivision 19c, is amended to read: 
230.30     Subd. 19c.  [PERSONAL CARE.] Medical assistance covers 
230.31  personal care assistant services provided by an individual who 
230.32  is qualified to provide the services according to subdivision 
230.33  19a and section 256B.0627, where the services are prescribed by 
230.34  a physician in accordance with a plan of treatment and are 
230.35  supervised by the recipient or a qualified professional.  
230.36  "Qualified professional" means a mental health professional as 
231.1   defined in section 245.462, subdivision 18, or 245.4871, 
231.2   subdivision 27; or a registered nurse as defined in sections 
231.3   148.171 to 148.285, or a licensed social worker as defined in 
231.4   section 148B.21.  As part of the assessment, the county public 
231.5   health nurse will assist the recipient or responsible party to 
231.6   identify the most appropriate person to provide supervision of 
231.7   the personal care assistant.  The qualified professional shall 
231.8   perform the duties described in Minnesota Rules, part 9505.0335, 
231.9   subpart 4.  
231.10     Sec. 14.  Minnesota Statutes 2002, section 256B.0627, 
231.11  subdivision 1, is amended to read: 
231.12     Subdivision 1.  [DEFINITION.] (a) "Activities of daily 
231.13  living" includes eating, toileting, grooming, dressing, bathing, 
231.14  transferring, mobility, and positioning.  
231.15     (b) "Assessment" means a review and evaluation of a 
231.16  recipient's need for home care services conducted in person.  
231.17  Assessments for private duty nursing shall be conducted by a 
231.18  registered private duty nurse.  Assessments for home health 
231.19  agency services shall be conducted by a home health agency 
231.20  nurse.  Assessments for personal care assistant services shall 
231.21  be conducted by the county public health nurse or a certified 
231.22  public health nurse under contract with the county.  A 
231.23  face-to-face assessment must include:  documentation of health 
231.24  status, determination of need, evaluation of service 
231.25  effectiveness, identification of appropriate services, service 
231.26  plan development or modification, coordination of services, 
231.27  referrals and follow-up to appropriate payers and community 
231.28  resources, completion of required reports, recommendation of 
231.29  service authorization, and consumer education.  Once the need 
231.30  for personal care assistant services is determined under this 
231.31  section, the county public health nurse or certified public 
231.32  health nurse under contract with the county is responsible for 
231.33  communicating this recommendation to the commissioner and the 
231.34  recipient.  A face-to-face assessment for personal care 
231.35  assistant services is conducted on those recipients who have 
231.36  never had a county public health nurse assessment.  A 
232.1   face-to-face assessment must occur at least annually or when 
232.2   there is a significant change in the recipient's condition or 
232.3   when there is a change in the need for personal care assistant 
232.4   services.  A service update may substitute for the annual 
232.5   face-to-face assessment when there is not a significant change 
232.6   in recipient condition or a change in the need for personal care 
232.7   assistant service.  A service update or review for temporary 
232.8   increase includes a review of initial baseline data, evaluation 
232.9   of service effectiveness, redetermination of service need, 
232.10  modification of service plan and appropriate referrals, update 
232.11  of initial forms, obtaining service authorization, and on going 
232.12  consumer education.  Assessments for medical assistance home 
232.13  care services for mental retardation or related conditions and 
232.14  alternative care services for developmentally disabled home and 
232.15  community-based waivered recipients may be conducted by the 
232.16  county public health nurse to ensure coordination and avoid 
232.17  duplication.  Assessments must be completed on forms provided by 
232.18  the commissioner within 30 days of a request for home care 
232.19  services by a recipient or responsible party. 
232.20     (c) "Care plan" means a written description of personal 
232.21  care assistant services developed by the qualified professional 
232.22  or the recipient's physician with the recipient or responsible 
232.23  party to be used by the personal care assistant with a copy 
232.24  provided to the recipient or responsible party. 
232.25     (d) "Complex and regular private duty nursing care" means: 
232.26     (1) complex care is private duty nursing provided to 
232.27  recipients who are ventilator dependent or for whom a physician 
232.28  has certified that were it not for private duty nursing the 
232.29  recipient would meet the criteria for inpatient hospital 
232.30  intensive care unit (ICU) level of care; and 
232.31     (2) regular care is private duty nursing provided to all 
232.32  other recipients. 
232.33     (e) "Health-related functions" means functions that can be 
232.34  delegated or assigned by a licensed health care professional 
232.35  under state law to be performed by a personal care attendant. 
232.36     (f) "Home care services" means a health service, determined 
233.1   by the commissioner as medically necessary, that is ordered by a 
233.2   physician and documented in a service plan that is reviewed by 
233.3   the physician at least once every 60 days for the provision of 
233.4   home health services, or private duty nursing, or at least once 
233.5   every 365 days for personal care.  Home care services are 
233.6   provided to the recipient at the recipient's residence that is a 
233.7   place other than a hospital or long-term care facility or as 
233.8   specified in section 256B.0625.  
233.9      (g) "Instrumental activities of daily living" includes meal 
233.10  planning and preparation, managing finances, shopping for food, 
233.11  clothing, and other essential items, performing essential 
233.12  household chores, communication by telephone and other media, 
233.13  and getting around and participating in the community. 
233.14     (h) "Medically necessary" has the meaning given in 
233.15  Minnesota Rules, parts 9505.0170 to 9505.0475.  
233.16     (i) "Personal care assistant" means a person who:  
233.17     (1) is at least 18 years old, except for persons 16 to 18 
233.18  years of age who participated in a related school-based job 
233.19  training program or have completed a certified home health aide 
233.20  competency evaluation; 
233.21     (2) is able to effectively communicate with the recipient 
233.22  and personal care provider organization; 
233.23     (3) effective July 1, 1996, has completed one of the 
233.24  training requirements as specified in Minnesota Rules, part 
233.25  9505.0335, subpart 3, items A to D; 
233.26     (4) has the ability to, and provides covered personal care 
233.27  assistant services according to the recipient's care plan, 
233.28  responds appropriately to recipient needs, and reports changes 
233.29  in the recipient's condition to the supervising qualified 
233.30  professional or physician; 
233.31     (5) is not a consumer of personal care assistant services; 
233.32  and 
233.33     (6) is subject to criminal background checks and procedures 
233.34  specified in section 245A.04.  
233.35     (j) "Personal care provider organization" means an 
233.36  organization enrolled to provide personal care assistant 
234.1   services under the medical assistance program that complies with 
234.2   the following:  (1) owners who have a five percent interest or 
234.3   more, and managerial officials are subject to a background study 
234.4   as provided in section 245A.04.  This applies to currently 
234.5   enrolled personal care provider organizations and those agencies 
234.6   seeking enrollment as a personal care provider organization.  An 
234.7   organization will be barred from enrollment if an owner or 
234.8   managerial official of the organization has been convicted of a 
234.9   crime specified in section 245A.04, or a comparable crime in 
234.10  another jurisdiction, unless the owner or managerial official 
234.11  meets the reconsideration criteria specified in section 245A.04; 
234.12  (2) the organization must maintain a surety bond and liability 
234.13  insurance throughout the duration of enrollment and provides 
234.14  proof thereof.  The insurer must notify the department of human 
234.15  services of the cancellation or lapse of policy; and (3) the 
234.16  organization must maintain documentation of services as 
234.17  specified in Minnesota Rules, part 9505.2175, subpart 7, as well 
234.18  as evidence of compliance with personal care assistant training 
234.19  requirements. 
234.20     (k) "Responsible party" means an individual residing with a 
234.21  recipient of personal care assistant services who is capable of 
234.22  providing the supportive care support necessary to assist the 
234.23  recipient to live in the community, is at least 18 years 
234.24  old, actively participates in planning and directing of personal 
234.25  care assistant services, and is not a the personal care 
234.26  assistant.  The responsible party must be accessible to the 
234.27  recipient and the personal care assistant when personal care 
234.28  services are being provided and monitor the services at least 
234.29  weekly according to the plan of care.  The responsible party 
234.30  must be identified at the time of assessment and listed on the 
234.31  recipient's service agreement and care plan.  Responsible 
234.32  parties who are parents of minors or guardians of minors or 
234.33  incapacitated persons may delegate the responsibility to another 
234.34  adult during a temporary absence of at least 24 hours but not 
234.35  more than six months.  The person delegated as a responsible 
234.36  party must be able to meet the definition of responsible party, 
235.1   except that the delegated responsible party is required to 
235.2   reside with the recipient only while serving as the responsible 
235.3   party who is not the personal care assistant.  The responsible 
235.4   party must assure that the delegate performs the functions of 
235.5   the responsible party, is identified at the time of the 
235.6   assessment, and is listed on the service agreement and the care 
235.7   plan.  Foster care license holders may be designated the 
235.8   responsible party for residents of the foster care home if case 
235.9   management is provided as required in section 256B.0625, 
235.10  subdivision 19a.  For persons who, as of April 1, 1992, are 
235.11  sharing personal care assistant services in order to obtain the 
235.12  availability of 24-hour coverage, an employee of the personal 
235.13  care provider organization may be designated as the responsible 
235.14  party if case management is provided as required in section 
235.15  256B.0625, subdivision 19a. 
235.16     (l) "Service plan" means a written description of the 
235.17  services needed based on the assessment developed by the nurse 
235.18  who conducts the assessment together with the recipient or 
235.19  responsible party.  The service plan shall include a description 
235.20  of the covered home care services, frequency and duration of 
235.21  services, and expected outcomes and goals.  The recipient and 
235.22  the provider chosen by the recipient or responsible party must 
235.23  be given a copy of the completed service plan within 30 calendar 
235.24  days of the request for home care services by the recipient or 
235.25  responsible party. 
235.26     (m) "Skilled nurse visits" are provided in a recipient's 
235.27  residence under a plan of care or service plan that specifies a 
235.28  level of care which the nurse is qualified to provide.  These 
235.29  services are: 
235.30     (1) nursing services according to the written plan of care 
235.31  or service plan and accepted standards of medical and nursing 
235.32  practice in accordance with chapter 148; 
235.33     (2) services which due to the recipient's medical condition 
235.34  may only be safely and effectively provided by a registered 
235.35  nurse or a licensed practical nurse; 
235.36     (3) assessments performed only by a registered nurse; and 
236.1      (4) teaching and training the recipient, the recipient's 
236.2   family, or other caregivers requiring the skills of a registered 
236.3   nurse or licensed practical nurse. 
236.4      (n) "Telehomecare" means the use of telecommunications 
236.5   technology by a home health care professional to deliver home 
236.6   health care services, within the professional's scope of 
236.7   practice, to a patient located at a site other than the site 
236.8   where the practitioner is located. 
236.9      Sec. 15.  Minnesota Statutes 2002, section 256B.0627, 
236.10  subdivision 4, is amended to read: 
236.11     Subd. 4.  [PERSONAL CARE ASSISTANT SERVICES.] (a) The 
236.12  personal care assistant services that are eligible for payment 
236.13  are services and supports furnished to an individual, as needed, 
236.14  to assist in accomplishing activities of daily living; 
236.15  instrumental activities of daily living; health-related 
236.16  functions through hands-on assistance, supervision, and cuing; 
236.17  and redirection and intervention for behavior including 
236.18  observation and monitoring.  
236.19     (b) Payment for services will be made within the limits 
236.20  approved using the prior authorized process established in 
236.21  subdivision 5. 
236.22     (c) The amount and type of services authorized shall be 
236.23  based on an assessment of the recipient's needs in these areas: 
236.24     (1) bowel and bladder care; 
236.25     (2) skin care to maintain the health of the skin; 
236.26     (3) repetitive maintenance range of motion, muscle 
236.27  strengthening exercises, and other tasks specific to maintaining 
236.28  a recipient's optimal level of function; 
236.29     (4) respiratory assistance; 
236.30     (5) transfers and ambulation; 
236.31     (6) bathing, grooming, and hairwashing necessary for 
236.32  personal hygiene; 
236.33     (7) turning and positioning; 
236.34     (8) assistance with furnishing medication that is 
236.35  self-administered; 
236.36     (9) application and maintenance of prosthetics and 
237.1   orthotics; 
237.2      (10) cleaning medical equipment; 
237.3      (11) dressing or undressing; 
237.4      (12) assistance with eating and meal preparation and 
237.5   necessary grocery shopping; 
237.6      (13) accompanying a recipient to obtain medical diagnosis 
237.7   or treatment; 
237.8      (14) assisting, monitoring, or prompting the recipient to 
237.9   complete the services in clauses (1) to (13); 
237.10     (15) redirection, monitoring, and observation that are 
237.11  medically necessary and an integral part of completing the 
237.12  personal care assistant services described in clauses (1) to 
237.13  (14); 
237.14     (16) redirection and intervention for behavior, including 
237.15  observation and monitoring; 
237.16     (17) interventions for seizure disorders, including 
237.17  monitoring and observation if the recipient has had a seizure 
237.18  that requires intervention within the past three months; 
237.19     (18) tracheostomy suctioning using a clean procedure if the 
237.20  procedure is properly delegated by a registered nurse.  Before 
237.21  this procedure can be delegated to a personal care assistant, a 
237.22  registered nurse must determine that the tracheostomy suctioning 
237.23  can be accomplished utilizing a clean rather than a sterile 
237.24  procedure and must ensure that the personal care assistant has 
237.25  been taught the proper procedure; and 
237.26     (19) incidental household services that are an integral 
237.27  part of a personal care service described in clauses (1) to (18).
237.28  For purposes of this subdivision, monitoring and observation 
237.29  means watching for outward visible signs that are likely to 
237.30  occur and for which there is a covered personal care service or 
237.31  an appropriate personal care intervention.  For purposes of this 
237.32  subdivision, a clean procedure refers to a procedure that 
237.33  reduces the numbers of microorganisms or prevents or reduces the 
237.34  transmission of microorganisms from one person or place to 
237.35  another.  A clean procedure may be used beginning 14 days after 
237.36  insertion. 
238.1      (d) The personal care assistant services that are not 
238.2   eligible for payment are the following:  
238.3      (1) services not ordered by the physician; 
238.4      (2) assessments by personal care assistant provider 
238.5   organizations or by independently enrolled registered nurses; 
238.6      (3) services that are not in the service plan; 
238.7      (4) services provided by the recipient's spouse, legal 
238.8   guardian for an adult or child recipient, or parent of a 
238.9   recipient under age 18; 
238.10     (5) services provided by a foster care provider of a 
238.11  recipient who cannot direct the recipient's own care, unless 
238.12  monitored by a county or state case manager under section 
238.13  256B.0625, subdivision 19a; 
238.14     (6) services provided by the residential or program license 
238.15  holder in a residence for more than four persons; 
238.16     (7) services that are the responsibility of a residential 
238.17  or program license holder under the terms of a service agreement 
238.18  and administrative rules; 
238.19     (8) sterile procedures; 
238.20     (9) injections of fluids into veins, muscles, or skin; 
238.21     (10) services provided by parents of adult recipients, 
238.22  adult children, or siblings of the recipient, unless these 
238.23  relatives meet one of the following hardship criteria and the 
238.24  commissioner waives this requirement: 
238.25     (i) the relative resigns from a part-time or full-time job 
238.26  to provide personal care for the recipient; 
238.27     (ii) the relative goes from a full-time to a part-time job 
238.28  with less compensation to provide personal care for the 
238.29  recipient; 
238.30     (iii) the relative takes a leave of absence without pay to 
238.31  provide personal care for the recipient; 
238.32     (iv) the relative incurs substantial expenses by providing 
238.33  personal care for the recipient; or 
238.34     (v) because of labor conditions, special language needs, or 
238.35  intermittent hours of care needed, the relative is needed in 
238.36  order to provide an adequate number of qualified personal care 
239.1   assistants to meet the medical needs of the recipient; 
239.2      (11) homemaker services that are not an integral part of a 
239.3   personal care assistant services; 
239.4      (12) (11) home maintenance, or chore services; 
239.5      (13) (12) services not specified under paragraph (a); and 
239.6      (14) (13) services not authorized by the commissioner or 
239.7   the commissioner's designee. 
239.8      (e) The recipient or responsible party may choose to 
239.9   supervise the personal care assistant or to have a qualified 
239.10  professional, as defined in section 256B.0625, subdivision 19c, 
239.11  provide the supervision.  As required under section 256B.0625, 
239.12  subdivision 19c, the county public health nurse, as a part of 
239.13  the assessment, will assist the recipient or responsible party 
239.14  to identify the most appropriate person to provide supervision 
239.15  of the personal care assistant.  Health-related delegated tasks 
239.16  performed by the personal care assistant will be under the 
239.17  supervision of a qualified professional or the direction of the 
239.18  recipient's physician.  If the recipient has a qualified 
239.19  professional, Minnesota Rules, part 9505.0335, subpart 4, 
239.20  applies. 
239.21     Sec. 16.  Minnesota Statutes 2002, section 256B.0627, 
239.22  subdivision 9, is amended to read: 
239.23     Subd. 9.  [FLEXIBLE USE OF PERSONAL CARE ASSISTANT HOURS.] 
239.24  (a) The commissioner may allow for the flexible use of personal 
239.25  care assistant hours.  "Flexible use" means the scheduled use of 
239.26  authorized hours of personal care assistant services, which vary 
239.27  within the length of the service authorization in order to more 
239.28  effectively meet the needs and schedule of the recipient.  
239.29  Recipients may use their approved hours flexibly within the 
239.30  service authorization period for medically necessary covered 
239.31  services specified in the assessment required in subdivision 1.  
239.32  The flexible use of authorized hours does not increase the total 
239.33  amount of authorized hours available to a recipient as 
239.34  determined under subdivision 5.  The commissioner shall not 
239.35  authorize additional personal care assistant services to 
239.36  supplement a service authorization that is exhausted before the 
240.1   end date under a flexible service use plan, unless the county 
240.2   public health nurse determines a change in condition and a need 
240.3   for increased services is established. 
240.4      (b) The recipient or responsible party, together with the 
240.5   county public health nurse, shall determine whether flexible use 
240.6   is an appropriate option based on the needs and preferences of 
240.7   the recipient or responsible party, and, if appropriate, must 
240.8   ensure that the allocation of hours covers the ongoing needs of 
240.9   the recipient over the entire service authorization period.  As 
240.10  part of the assessment and service planning process, the 
240.11  recipient or responsible party must work with the county public 
240.12  health nurse to develop a written month-to-month plan of the 
240.13  projected use of personal care assistant services that is part 
240.14  of the service plan and ensures that the: 
240.15     (1) health and safety needs of the recipient will be met; 
240.16     (2) total annual authorization will not exceed before the 
240.17  end date; and 
240.18     (3) how actual use of hours will be monitored.  
240.19     (c) If the actual use of personal care assistant service 
240.20  varies significantly from the use projected in the plan, the 
240.21  written plan must be promptly updated by the recipient or 
240.22  responsible party and the county public health nurse. 
240.23     (d) The recipient or responsible party, together with the 
240.24  provider, must work to monitor and document the use of 
240.25  authorized hours and ensure that a recipient is able to manage 
240.26  services effectively throughout the authorized period.  The 
240.27  provider must ensure that the month-to-month plan is 
240.28  incorporated into the care plan.  Upon request of the recipient 
240.29  or responsible party, the provider must furnish regular updates 
240.30  to the recipient or responsible party on the amount of personal 
240.31  care assistant services used.  
240.32     (e) The recipient or responsible party may revoke the 
240.33  authorization for flexible use of hours by notifying the 
240.34  provider and county public health nurse in writing. 
240.35     (f) If the requirements in paragraphs (a) to (e) have not 
240.36  substantially been met, the commissioner shall deny, revoke, or 
241.1   suspend the authorization to use authorized hours flexibly.  The 
241.2   recipient or responsible party may appeal the commissioner's 
241.3   action according to section 256.045.  The denial, revocation, or 
241.4   suspension to use the flexible hours option shall not affect the 
241.5   recipient's authorized level of personal care assistant services 
241.6   as determined under subdivision 5. 
241.7      Sec. 17.  Minnesota Statutes 2002, section 256B.0911, 
241.8   subdivision 4d, is amended to read: 
241.9      Subd. 4d.  [PREADMISSION SCREENING OF INDIVIDUALS UNDER 65 
241.10  YEARS OF AGE.] (a) It is the policy of the state of Minnesota to 
241.11  ensure that individuals with disabilities or chronic illness are 
241.12  served in the most integrated setting appropriate to their needs 
241.13  and have the necessary information to make informed choices 
241.14  about home and community-based service options. 
241.15     (b) Individuals under 65 years of age who are admitted to a 
241.16  nursing facility from a hospital must be screened prior to 
241.17  admission as outlined in subdivisions 4a through 4c. 
241.18     (c) Individuals under 65 years of age who are admitted to 
241.19  nursing facilities with only a telephone screening must receive 
241.20  a face-to-face assessment from the long-term care consultation 
241.21  team member of the county in which the facility is located or 
241.22  from the recipient's county case manager within 20 working 40 
241.23  calendar days of admission. 
241.24     (d) Individuals under 65 years of age who are admitted to a 
241.25  nursing facility without preadmission screening according to the 
241.26  exemption described in subdivision 4b, paragraph (a), clause 
241.27  (3), and who remain in the facility longer than 30 days must 
241.28  receive a face-to-face assessment within 40 days of admission.  
241.29     (e) At the face-to-face assessment, the long-term care 
241.30  consultation team member or county case manager must perform the 
241.31  activities required under subdivision 3b. 
241.32     (f) For individuals under 21 years of age, a screening 
241.33  interview which recommends nursing facility admission must be 
241.34  face-to-face and approved by the commissioner before the 
241.35  individual is admitted to the nursing facility. 
241.36     (g) In the event that an individual under 65 years of age 
242.1   is admitted to a nursing facility on an emergency basis, the 
242.2   county must be notified of the admission on the next working 
242.3   day, and a face-to-face assessment as described in paragraph (c) 
242.4   must be conducted within 20 working days 40 calendar days of 
242.5   admission. 
242.6      (h) At the face-to-face assessment, the long-term care 
242.7   consultation team member or the case manager must present 
242.8   information about home and community-based options so the 
242.9   individual can make informed choices.  If the individual chooses 
242.10  home and community-based services, the long-term care 
242.11  consultation team member or case manager must complete a written 
242.12  relocation plan within 20 working days of the visit.  The plan 
242.13  shall describe the services needed to move out of the facility 
242.14  and a time line for the move which is designed to ensure a 
242.15  smooth transition to the individual's home and community. 
242.16     (i) An individual under 65 years of age residing in a 
242.17  nursing facility shall receive a face-to-face assessment at 
242.18  least every 12 months to review the person's service choices and 
242.19  available alternatives unless the individual indicates, in 
242.20  writing, that annual visits are not desired.  In this case, the 
242.21  individual must receive a face-to-face assessment at least once 
242.22  every 36 months for the same purposes. 
242.23     (j) Notwithstanding the provisions of subdivision 6, the 
242.24  commissioner may pay county agencies directly for face-to-face 
242.25  assessments for individuals under 65 years of age who are being 
242.26  considered for placement or residing in a nursing facility. 
242.27     Sec. 18.  Minnesota Statutes 2002, section 256B.0915, is 
242.28  amended by adding a subdivision to read: 
242.29     Subd. 9.  [TRIBAL MANAGEMENT OF ELDERLY WAIVER.] 
242.30  Notwithstanding contrary provisions of this section, or those in 
242.31  other state laws or rules, the commissioner and White Earth 
242.32  Reservation may develop a model for tribal management of the 
242.33  elderly waiver program and implement this model through a 
242.34  contract between the state and White Earth Reservation.  The 
242.35  model shall include the provision of tribal waiver case 
242.36  management, assessment for personal care assistance, and 
243.1   administrative requirements otherwise carried out by counties 
243.2   but shall not include tribal financial eligibility determination 
243.3   for medical assistance. 
243.4      Sec. 19.  Minnesota Statutes 2002, section 256B.47, 
243.5   subdivision 2, is amended to read: 
243.6      Subd. 2.  [NOTICE TO RESIDENTS.] (a) No increase in nursing 
243.7   facility rates for private paying residents shall be effective 
243.8   unless the nursing facility notifies the resident or person 
243.9   responsible for payment of the increase in writing 30 days 
243.10  before the increase takes effect.  
243.11     A nursing facility may adjust its rates without giving the 
243.12  notice required by this subdivision when the purpose of the rate 
243.13  adjustment is to reflect a necessary change in the level of care 
243.14  provided to a case-mix classification of the resident.  If the 
243.15  state fails to set rates as required by section 
243.16  256B.431, subdivision 1, the time required for giving notice is 
243.17  decreased by the number of days by which the state was late in 
243.18  setting the rates. 
243.19     (b) If the state does not set rates by the date required in 
243.20  section 256B.431, subdivision 1, nursing facilities shall meet 
243.21  the requirement for advance notice by informing the resident or 
243.22  person responsible for payments, on or before the effective date 
243.23  of the increase, that a rate increase will be effective on that 
243.24  date.  If the exact amount has not yet been determined, the 
243.25  nursing facility may raise the rates by the amount anticipated 
243.26  to be allowed.  Any amounts collected from private pay residents 
243.27  in excess of the allowable rate must be repaid to private pay 
243.28  residents with interest at the rate used by the commissioner of 
243.29  revenue for the late payment of taxes and in effect on the date 
243.30  the rate increase is effective. 
243.31     Sec. 20.  Minnesota Statutes 2002, section 256B.5012, is 
243.32  amended by adding a subdivision to read: 
243.33     Subd. 5.  [RATE INCREASE EFFECTIVE JUNE 1, 2003.] For rate 
243.34  periods beginning on or after June 1, 2003, the commissioner 
243.35  shall increase the total operating payment rate for each 
243.36  facility reimbursed under this section by $3 per day.  The 
244.1   increase shall not be subject to any annual percentage increase. 
244.2      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
244.3   following final enactment. 
244.4      Sec. 21.  Minnesota Statutes 2002, section 256B.5013, is 
244.5   amended by adding a subdivision to read: 
244.6      Subd. 7.  [RATE ADJUSTMENTS FOR SHORT-TERM ADMISSIONS FOR 
244.7   CRISIS OR SPECIALIZED MEDICAL CARE.] Beginning July 1, 2003, the 
244.8   commissioner may designate up to 25 beds in ICF/MR facilities 
244.9   statewide to provide crisis respite or specialized respite care 
244.10  for medically fragile individuals.  The commissioner shall 
244.11  adjust the monthly facility rate to provide payment for 
244.12  vacancies in designated respite beds by an amount equal to the 
244.13  rate for each recipient residing in a respite bed for up to 15 
244.14  days per bed per month.  The commissioner may designate respite 
244.15  beds in other facilities based on the respite care needs of a 
244.16  region or county as provided in section 252.28.  Nothing in this 
244.17  section shall be construed as limiting payments for short-term 
244.18  admissions of eligible recipients to an ICF/MR that is not 
244.19  designated for respite care under this subdivision and does not 
244.20  receive a temporary rate adjustment. 
244.21     Sec. 22.  [LICENSING CHANGE.] 
244.22     Notwithstanding Minnesota Statutes, sections 245A.11 and 
244.23  252.291, the commissioner of human services shall allow an 
244.24  existing intermediate care facility for persons with mental 
244.25  retardation or related conditions located in Goodhue county 
244.26  serving 39 children to be converted to four separately licensed 
244.27  or certified cottages serving up to six children each. 
244.28     Sec. 23.  [REVISOR'S INSTRUCTION.] 
244.29     For sections in Minnesota Statutes and Minnesota Rules 
244.30  affected by the repealed sections in this article, the revisor 
244.31  shall delete internal cross-references where appropriate and 
244.32  make changes necessary to correct the punctuation, grammar, or 
244.33  structure of the remaining text and preserve its meaning. 
244.34     Sec. 24.  [REPEALER.] 
244.35     (a) Minnesota Statutes 2002, sections 252.32, subdivision 
244.36  2; 256B.095; 256B.0951; 256B.0952; 256B.0953; 256B.0954; 
245.1   256B.0955; and 256B.5013, subdivision 4, are repealed July 1, 
245.2   2003. 
245.3      (b) Laws 2001, First Special Session chapter 9, article 13, 
245.4   section 24, is repealed July 1, 2003. 
245.5                              ARTICLE 6 
245.6                        OCCUPATIONAL LICENSES
245.7      Section 1.  Minnesota Statutes 2002, section 116J.70, 
245.8   subdivision 2a, is amended to read: 
245.9      Subd. 2a.  [LICENSE; EXCEPTIONS.] "Business license" or 
245.10  "license" does not include the following:  
245.11     (1) any occupational license or registration issued by a 
245.12  licensing board listed in section 214.01 or any occupational 
245.13  registration issued by the commissioner of health pursuant to 
245.14  section 214.13; 
245.15     (2) any license issued by a county, home rule charter city, 
245.16  statutory city, township, or other political subdivision; 
245.17     (3) any license required to practice the following 
245.18  occupation regulated by the following sections:  
245.19     (i) abstracters regulated pursuant to chapter 386; 
245.20     (ii) accountants regulated pursuant to chapter 326A; 
245.21     (iii) adjusters regulated pursuant to chapter 72B; 
245.22     (iv) architects regulated pursuant to chapter 326; 
245.23     (v) assessors regulated pursuant to chapter 270; 
245.24     (vi) athletic trainers regulated pursuant to chapter 148; 
245.25     (vii) attorneys regulated pursuant to chapter 481; 
245.26     (viii) auctioneers regulated pursuant to chapter 330; 
245.27     (ix) barbers regulated pursuant to chapter 154; 
245.28     (x) beauticians regulated pursuant to chapter 155A; 
245.29     (xi) boiler operators regulated pursuant to chapter 183; 
245.30     (xii) chiropractors regulated pursuant to chapter 148; 
245.31     (xiii) collection agencies regulated pursuant to chapter 
245.32  332; 
245.33     (xiv) cosmetologists regulated pursuant to chapter 155A; 
245.34     (xv) dentists, registered dental assistants, and dental 
245.35  hygienists regulated pursuant to chapter 150A; 
245.36     (xvi) denturists regulated pursuant to chapter 150B; 
246.1      (xvii) detectives regulated pursuant to chapter 326; 
246.2      (xvii) (xviii) electricians regulated pursuant to chapter 
246.3   326; 
246.4      (xviii) (xix) mortuary science practitioners regulated 
246.5   pursuant to chapter 149A; 
246.6      (xix) (xx) engineers regulated pursuant to chapter 326; 
246.7      (xx) (xxi) insurance brokers and salespersons regulated 
246.8   pursuant to chapter 60A; 
246.9      (xxi) (xxii) certified interior designers regulated 
246.10  pursuant to chapter 326; 
246.11     (xxii) (xxiii) midwives regulated pursuant to chapter 147D; 
246.12     (xxiii) (xxiv) nursing home administrators regulated 
246.13  pursuant to chapter 144A; 
246.14     (xxiv) (xxv) optometrists regulated pursuant to chapter 
246.15  148; 
246.16     (xxv) (xxvi) osteopathic physicians regulated pursuant to 
246.17  chapter 147; 
246.18     (xxvi) (xxvii) pharmacists regulated pursuant to chapter 
246.19  151; 
246.20     (xxvii) (xxviii) physical therapists regulated pursuant to 
246.21  chapter 148; 
246.22     (xxviii) (xxix) physician assistants regulated pursuant to 
246.23  chapter 147A; 
246.24     (xxix) (xxx) physicians and surgeons regulated pursuant to 
246.25  chapter 147; 
246.26     (xxx) (xxxi) plumbers regulated pursuant to chapter 326; 
246.27     (xxxi) (xxxii) podiatrists regulated pursuant to chapter 
246.28  153; 
246.29     (xxxii) (xxxiii) practical nurses regulated pursuant to 
246.30  chapter 148; 
246.31     (xxxiii) (xxxiv) professional fund raisers regulated 
246.32  pursuant to chapter 309; 
246.33     (xxxiv) (xxxv) psychologists regulated pursuant to chapter 
246.34  148; 
246.35     (xxxv) (xxxvi) real estate brokers, salespersons, and 
246.36  others regulated pursuant to chapters 82 and 83; 
247.1      (xxxvi) (xxxvii) registered nurses regulated pursuant to 
247.2   chapter 148; 
247.3      (xxxvii) (xxxviii) securities brokers, dealers, agents, and 
247.4   investment advisers regulated pursuant to chapter 80A; 
247.5      (xxxviii) (xxxix) steamfitters regulated pursuant to 
247.6   chapter 326; 
247.7      (xxxix) (xl) teachers and supervisory and support personnel 
247.8   regulated pursuant to chapter 125; 
247.9      (xl) (xli) veterinarians regulated pursuant to chapter 156; 
247.10     (xli) (xlii) water conditioning contractors and installers 
247.11  regulated pursuant to chapter 326; 
247.12     (xlii) (xliii) water well contractors regulated pursuant to 
247.13  chapter 103I; 
247.14     (xliii) (xliv) water and waste treatment operators 
247.15  regulated pursuant to chapter 115; 
247.16     (xliv) (xlv) motor carriers regulated pursuant to chapter 
247.17  221; 
247.18     (xlv) (xlvi) professional firms regulated under chapter 
247.19  319B; 
247.20     (xlvi) (xlvii) real estate appraisers regulated pursuant to 
247.21  chapter 82B; or 
247.22     (xlvii) (xlviii) residential building contractors, 
247.23  residential remodelers, residential roofers, manufactured home 
247.24  installers, and specialty contractors regulated pursuant to 
247.25  chapter 326; 
247.26     (4) any driver's license required pursuant to chapter 171; 
247.27     (5) any aircraft license required pursuant to chapter 360; 
247.28     (6) any watercraft license required pursuant to chapter 
247.29  86B; 
247.30     (7) any license, permit, registration, certification, or 
247.31  other approval pertaining to a regulatory or management program 
247.32  related to the protection, conservation, or use of or 
247.33  interference with the resources of land, air, or water, which is 
247.34  required to be obtained from a state agency or instrumentality; 
247.35  and 
247.36     (8) any pollution control rule or standard established by 
248.1   the pollution control agency or any health rule or standard 
248.2   established by the commissioner of health or any licensing rule 
248.3   or standard established by the commissioner of human services. 
248.4      Sec. 2.  Minnesota Statutes 2002, section 144.335, 
248.5   subdivision 1, is amended to read: 
248.6      Subdivision 1.  [DEFINITIONS.] For the purposes of this 
248.7   section, the following terms have the meanings given them: 
248.8      (a) "Patient" means a natural person who has received 
248.9   health care services from a provider for treatment or 
248.10  examination of a medical, psychiatric, or mental condition, the 
248.11  surviving spouse and parents of a deceased patient, or a person 
248.12  the patient appoints in writing as a representative, including a 
248.13  health care agent acting pursuant to chapter 145C, unless the 
248.14  authority of the agent has been limited by the principal in the 
248.15  principal's health care directive.  Except for minors who have 
248.16  received health care services pursuant to sections 144.341 to 
248.17  144.347, in the case of a minor, patient includes a parent or 
248.18  guardian, or a person acting as a parent or guardian in the 
248.19  absence of a parent or guardian. 
248.20     (b) "Provider" means (1) any person who furnishes health 
248.21  care services and is regulated to furnish the services pursuant 
248.22  to chapter 147, 147A, 147B, 147C, 147D, 148, 148B, 148C, 150A, 
248.23  150B, 151, 153, or 153A, or Minnesota Rules, chapter 4666; (2) a 
248.24  home care provider licensed under section 144A.46; (3) a health 
248.25  care facility licensed pursuant to this chapter or chapter 144A; 
248.26  (4) a physician assistant registered under chapter 147A; and (5) 
248.27  an unlicensed mental health practitioner regulated pursuant to 
248.28  sections 148B.60 to 148B.71. 
248.29     (c) "Individually identifiable form" means a form in which 
248.30  the patient is or can be identified as the subject of the health 
248.31  records. 
248.32     Sec. 3.  Minnesota Statutes 2002, section 148C.01, is 
248.33  amended by adding a subdivision to read: 
248.34     Subd. 1a.  [ACCREDITING ASSOCIATION.] "Accrediting 
248.35  association" means an organization recognized by the 
248.36  commissioner that evaluates schools and education programs of 
249.1   alcohol and drug counseling or is listed in Nationally 
249.2   Recognized Accrediting Agencies and Associations, Criteria and 
249.3   Procedures for Listing by the U.S. Secretary of Education and 
249.4   Current List (1996), which is incorporated by reference.  
249.5      Sec. 4.  Minnesota Statutes 2002, section 148C.01, 
249.6   subdivision 2, is amended to read: 
249.7      Subd. 2.  [ALCOHOL AND DRUG COUNSELOR.] "Alcohol and drug 
249.8   counselor" or "counselor" means a person who: 
249.9      (1) uses, as a representation to the public, any title, 
249.10  initials, or description of services incorporating the words 
249.11  "alcohol and drug counselor"; 
249.12     (2) offers to render professional alcohol and drug 
249.13  counseling services relative to the abuse of or the dependency 
249.14  on alcohol or other drugs to the general public or groups, 
249.15  organizations, corporations, institutions, or government 
249.16  agencies for compensation, implying that the person is licensed 
249.17  and trained, experienced or expert in alcohol and drug 
249.18  counseling; 
249.19     (3) holds a valid license issued under sections 148C.01 to 
249.20  148C.11 this chapter to engage in the practice of alcohol and 
249.21  drug counseling; or 
249.22     (4) is an applicant for an alcohol and drug counseling 
249.23  license.  
249.24     Sec. 5.  Minnesota Statutes 2002, section 148C.01, is 
249.25  amended by adding a subdivision to read: 
249.26     Subd. 2a.  [ALCOHOL AND DRUG COUNSELOR ACADEMIC COURSE 
249.27  WORK.] "Alcohol and drug counselor academic course work" means 
249.28  classroom education, which is directly related to alcohol and 
249.29  drug counseling and meets the requirements of section 148C.04, 
249.30  subdivision 5a, and is taken through an accredited school or 
249.31  educational program.  
249.32     Sec. 6.  Minnesota Statutes 2002, section 148C.01, is 
249.33  amended by adding a subdivision to read: 
249.34     Subd. 2b.  [ALCOHOL AND DRUG COUNSELOR CONTINUING EDUCATION 
249.35  ACTIVITY.] "Alcohol and drug counselor continuing education 
249.36  activity" means clock hours that meet the requirements of 
250.1   section 148C.075 and Minnesota Rules, part 4747.1100, and are 
250.2   obtained by a licensee at educational programs of annual 
250.3   conferences, lectures, panel discussions, workshops, seminars, 
250.4   symposiums, employer-sponsored inservices, or courses taken 
250.5   through accredited schools or education programs, including home 
250.6   study courses.  A home study course need not be provided by an 
250.7   accredited school or education program to meet continuing 
250.8   education requirements.  
250.9      Sec. 7.  Minnesota Statutes 2002, section 148C.01, is 
250.10  amended by adding a subdivision to read: 
250.11     Subd. 2c.  [ALCOHOL AND DRUG COUNSELOR 
250.12  TECHNICIAN.] "Alcohol and drug counselor technician" means a 
250.13  person not licensed as an alcohol and drug counselor who is 
250.14  performing acts authorized under section 148C.045.  
250.15     Sec. 8.  Minnesota Statutes 2002, section 148C.01, is 
250.16  amended by adding a subdivision to read: 
250.17     Subd. 2d.  [ALCOHOL AND DRUG COUNSELOR TRAINING.] "Alcohol 
250.18  and drug counselor training" means clock hours obtained by an 
250.19  applicant at educational programs of annual conferences, 
250.20  lectures, panel discussions, workshops, seminars, symposiums, 
250.21  employer-sponsored inservices, or courses taken through 
250.22  accredited schools or education programs, including home study 
250.23  courses.  Clock hours obtained from accredited schools or 
250.24  education programs must be measured under Minnesota Rules, part 
250.25  4747.1100, subpart 5.  
250.26     Sec. 9.  Minnesota Statutes 2002, section 148C.01, is 
250.27  amended by adding a subdivision to read: 
250.28     Subd. 2f.  [CLOCK HOUR.] "Clock hour" means an 
250.29  instructional session of 50 consecutive minutes, excluding 
250.30  coffee breaks, registration, meals without a speaker, and social 
250.31  activities.  
250.32     Sec. 10.  Minnesota Statutes 2002, section 148C.01, is 
250.33  amended by adding a subdivision to read: 
250.34     Subd. 2g.  [CREDENTIAL.] "Credential" means a license, 
250.35  permit, certification, registration, or other evidence of 
250.36  qualification or authorization to engage in the practice of an 
251.1   occupation.  
251.2      Sec. 11.  Minnesota Statutes 2002, section 148C.01, is 
251.3   amended by adding a subdivision to read: 
251.4      Subd. 4a.  [LICENSEE.] "Licensee" means a person who holds 
251.5   a valid license under this chapter.  
251.6      Sec. 12.  Minnesota Statutes 2002, section 148C.01, is 
251.7   amended by adding a subdivision to read: 
251.8      Subd. 11a.  [STUDENT.] "Student" means a person enrolled in 
251.9   an alcohol and drug counselor education program at an accredited 
251.10  school or educational program and earning a minimum of nine 
251.11  semester credits per calendar year towards completion of an 
251.12  associate's, bachelor's, master's, or doctorate degree 
251.13  requirements that include an additional 18 semester credits or 
251.14  270 clock hours of alcohol and drug counseling specific course 
251.15  work and 440 clock hours of practicum.  
251.16     Sec. 13.  Minnesota Statutes 2002, section 148C.01, 
251.17  subdivision 12, is amended to read: 
251.18     Subd. 12.  [SUPERVISED ALCOHOL AND DRUG COUNSELING 
251.19  EXPERIENCE COUNSELOR.] Except during the transition period, 
251.20  "Supervised alcohol and drug counseling experience counselor" 
251.21  means practical experience gained by a student, volunteer, or 
251.22  either before, during, or after the student completes a program 
251.23  from an accredited school or educational program of alcohol and 
251.24  drug counseling, an intern, and or a person issued a temporary 
251.25  permit under section 148C.04, subdivision 4, and who is 
251.26  supervised by a person either licensed under this chapter or 
251.27  exempt under its provisions; either before, during, or after the 
251.28  student completes a program from an accredited school or 
251.29  educational program of alcohol and drug counseling. 
251.30     Sec. 14.  Minnesota Statutes 2002, section 148C.01, is 
251.31  amended by adding a subdivision to read: 
251.32     Subd. 12a.  [SUPERVISOR.] "Supervisor" means a licensed 
251.33  alcohol and drug counselor licensed under this chapter or other 
251.34  licensed professional practicing alcohol and drug counseling 
251.35  under section 148C.11 who monitors activities of and accepts 
251.36  legal liability for the person practicing under supervision.  A 
252.1   supervisor shall supervise no more than three trainees 
252.2   practicing under section 148C.04, subdivision 6.  
252.3      Sec. 15.  Minnesota Statutes 2002, section 148C.03, 
252.4   subdivision 1, is amended to read: 
252.5      Subdivision 1.  [GENERAL.] The commissioner shall, after 
252.6   consultation with the advisory council or a committee 
252.7   established by rule: 
252.8      (a) adopt and enforce rules for licensure of alcohol and 
252.9   drug counselors, including establishing standards and methods of 
252.10  determining whether applicants and licensees are qualified under 
252.11  section 148C.04.  The rules must provide for examinations and 
252.12  establish standards for the regulation of professional conduct.  
252.13  The rules must be designed to protect the public; 
252.14     (b) develop and, at least twice a year, administer an 
252.15  examination to assess applicants' knowledge and skills.  The 
252.16  commissioner may contract for the administration of an 
252.17  examination with an entity designated by the commissioner.  The 
252.18  examinations must be psychometrically valid and reliable; must 
252.19  be written and oral, with the oral examination based on a 
252.20  written case presentation; must minimize cultural bias; and must 
252.21  be balanced in various theories relative to the practice of 
252.22  alcohol and drug counseling; 
252.23     (c) issue licenses to individuals qualified under sections 
252.24  148C.01 to 148C.11; 
252.25     (d) issue copies of the rules for licensure to all 
252.26  applicants; 
252.27     (e) adopt rules to establish and implement procedures, 
252.28  including a standard disciplinary process and rules of 
252.29  professional conduct; 
252.30     (f) carry out disciplinary actions against licensees; 
252.31     (g) establish, with the advice and recommendations of the 
252.32  advisory council, written internal operating procedures for 
252.33  receiving and investigating complaints and for taking 
252.34  disciplinary actions as appropriate; 
252.35     (h) educate the public about the existence and content of 
252.36  the rules for alcohol and drug counselor licensing to enable 
253.1   consumers to file complaints against licensees who may have 
253.2   violated the rules; 
253.3      (i) evaluate the rules in order to refine and improve the 
253.4   methods used to enforce the commissioner's standards; and 
253.5      (j) set, collect, and adjust license fees for alcohol and 
253.6   drug counselors so that the total fees collected will as closely 
253.7   as possible equal anticipated expenditures during the biennium, 
253.8   as provided in section 16A.1285; fees for initial and renewal 
253.9   application and examinations; late fees for counselors who 
253.10  submit license renewal applications after the renewal deadline; 
253.11  and a surcharge fee.  The surcharge fee must include an amount 
253.12  necessary to recover, over a five-year period, the 
253.13  commissioner's direct expenditures for the adoption of the rules 
253.14  providing for the licensure of alcohol and drug counselors.  All 
253.15  fees received shall be deposited in the state treasury and 
253.16  credited to the special revenue fund. 
253.17     Sec. 16.  Minnesota Statutes 2002, section 148C.0351, 
253.18  subdivision 1, is amended to read: 
253.19     Subdivision 1.  [APPLICATION FORMS.] Unless exempted under 
253.20  section 148C.11, a person who practices alcohol and drug 
253.21  counseling in Minnesota must: 
253.22     (1) apply to the commissioner for a license to practice 
253.23  alcohol and drug counseling on forms provided by the 
253.24  commissioner; 
253.25     (2) include with the application a statement that the 
253.26  statements in the application are true and correct to the best 
253.27  of the applicant's knowledge and belief; 
253.28     (3) include with the application a nonrefundable 
253.29  application fee specified by the commissioner in section 
253.30  148C.12; 
253.31     (4) include with the application information describing the 
253.32  applicant's experience, including the number of years and months 
253.33  the applicant has practiced alcohol and drug counseling as 
253.34  defined in section 148C.01; 
253.35     (5) include with the application the applicant's business 
253.36  address and telephone number, or home address and telephone 
254.1   number if the applicant conducts business out of the home, and 
254.2   if applicable, the name of the applicant's supervisor, manager, 
254.3   and employer; 
254.4      (6) include with the application a written and signed 
254.5   authorization for the commissioner to make inquiries to 
254.6   appropriate state regulatory agencies and private credentialing 
254.7   organizations in this or any other state where the applicant has 
254.8   practiced alcohol and drug counseling; and 
254.9      (7) complete the application in sufficient detail for the 
254.10  commissioner to determine whether the applicant meets the 
254.11  requirements for filing.  The commissioner may ask the applicant 
254.12  to provide additional information necessary to clarify 
254.13  incomplete or ambiguous information submitted in the application.
254.14     Sec. 17.  Minnesota Statutes 2002, section 148C.0351, is 
254.15  amended by adding a subdivision to read: 
254.16     Subd. 4.  [INITIAL LICENSE; TERM.] (a) An initial license 
254.17  is effective on the date the commissioner indicates on the 
254.18  license certificate, with the license number, sent to the 
254.19  applicant upon approval of the application.  
254.20     (b) An initial license is valid for a period beginning with 
254.21  the effective date in paragraph (a) and ending on the date 
254.22  specified by the commissioner on the license certificate placing 
254.23  the applicant in an existing two-year renewal cycle, as 
254.24  established under section 148C.05, subdivision 1.  
254.25     Sec. 18.  [148C.0355] [COMMISSIONER ACTION ON APPLICATIONS 
254.26  FOR LICENSURE.] 
254.27     The commissioner shall act on each application for 
254.28  licensure within 90 days from the date the completed application 
254.29  and all required information is received by the commissioner.  
254.30  The commissioner shall determine if the applicant meets the 
254.31  requirements for licensure and whether there are grounds for 
254.32  denial of licensure under this chapter.  If the commissioner 
254.33  denies an application on grounds other than the applicant's 
254.34  failure of an examination, the commissioner shall:  
254.35     (1) notify the applicant, in writing, of the denial and the 
254.36  reason for the denial and provide the applicant 30 days from the 
255.1   date of the letter informing the applicant of the denial in 
255.2   which the applicant may provide additional information to 
255.3   address the reasons for the denial.  If the applicant does not 
255.4   respond in writing to the commissioner within the 30-day period, 
255.5   the denial is final.  If the commissioner receives additional 
255.6   information, the commissioner shall review it and make a final 
255.7   determination thereafter; 
255.8      (2) notify the applicant that an application submitted 
255.9   following denial is a new application and must be accompanied by 
255.10  the appropriate fee as specified in section 148C.12; and 
255.11     (3) notify the applicant of the right to request a hearing 
255.12  under chapter 14.  
255.13     Sec. 19.  Minnesota Statutes 2002, section 148C.04, is 
255.14  amended to read: 
255.15     148C.04 [REQUIREMENTS FOR LICENSURE.] 
255.16     Subdivision 1.  [GENERAL REQUIREMENTS.] The commissioner 
255.17  shall issue licenses to the individuals qualified under sections 
255.18  148C.01 to 148C.11 this chapter to practice alcohol and drug 
255.19  counseling. 
255.20     Subd. 2.  [FEE.] Each applicant shall pay a nonrefundable 
255.21  fee set by the commissioner pursuant to section 148C.03 as 
255.22  specified in section 148C.12.  Fees paid to the commissioner 
255.23  shall be deposited in the special revenue fund. 
255.24     Subd. 3.  [LICENSING REQUIREMENTS FOR THE FIRST FIVE 
255.25  YEARS LICENSURE BEFORE JULY 1, 2008.] For five years after the 
255.26  effective date of the rules authorized in section 148C.03, 
255.27  the An applicant, unless qualified under section 148C.06 during 
255.28  the 25-month period authorized therein, under section 148C.07, 
255.29  or under subdivision 4, for a license must furnish evidence 
255.30  satisfactory to the commissioner that the applicant has met all 
255.31  the requirements in clauses (1) to (3). The applicant must have: 
255.32     (1) received an associate degree, or an equivalent number 
255.33  of credit hours, and a certificate in alcohol and drug 
255.34  counseling, including 18 semester credits or 270 clock hours of 
255.35  alcohol and drug counseling classroom education academic course 
255.36  work in accordance with subdivision 5a, paragraph (a), from an 
256.1   accredited school or educational program and 880 clock hours of 
256.2   supervised alcohol and drug counseling practicum; 
256.3      (2) completed a written case presentation and 
256.4   satisfactorily passed an oral examination established by the 
256.5   commissioner that demonstrates competence in the core functions; 
256.6   and 
256.7      (3) satisfactorily passed a written examination as 
256.8   established by the commissioner. 
256.9      Subd. 4.  [LICENSING REQUIREMENTS AFTER FIVE YEARS FOR 
256.10  LICENSURE AFTER JULY 1, 2008.] Beginning five years after the 
256.11  effective date of the rules authorized in section 148C.03, 
256.12  subdivision 1 , An applicant for licensure a license must submit 
256.13  evidence to the commissioner that the applicant has met one of 
256.14  the following requirements: 
256.15     (1) the applicant must have: 
256.16     (i) received a bachelor's degree from an accredited school 
256.17  or educational program, including 480 18 semester credits or 270 
256.18  clock hours of alcohol and drug counseling education academic 
256.19  course work in accordance with subdivision 5a, paragraph (a), 
256.20  from an accredited school or educational program and 880 clock 
256.21  hours of supervised alcohol and drug counseling practicum; 
256.22     (ii) completed a written case presentation and 
256.23  satisfactorily passed an oral examination established by the 
256.24  commissioner that demonstrates competence in the core functions; 
256.25  and 
256.26     (iii) satisfactorily passed a written examination as 
256.27  established by the commissioner; or 
256.28     (2) the applicant must meet the requirements of section 
256.29  148C.07. 
256.30     Subd. 5a.  [ACADEMIC COURSE WORK.] (a) Minimum academic 
256.31  course work requirements for licensure as referred to under 
256.32  subdivision 3, clause (1), and subdivision 4, clause (1), item 
256.33  (i), must be in the following areas: 
256.34     (1) overview of alcohol and drug counseling focusing on the 
256.35  transdisciplinary foundations of alcohol and drug counseling and 
256.36  providing an understanding of theories of chemical dependency, 
257.1   the continuum of care, and the process of change; 
257.2      (2) pharmacology of substance abuse disorders and the 
257.3   dynamics of addiction; 
257.4      (3) screening, intake, assessment, and treatment planning; 
257.5      (4) counseling theory and practice, crisis intervention, 
257.6   orientation, and client education; 
257.7      (5) case management, consultation, referral, treatment 
257.8   planning, reporting, recordkeeping, and professional and ethical 
257.9   responsibilities; and 
257.10     (6) multicultural aspects of chemical dependency to include 
257.11  awareness of learning outcomes described in Minnesota Rules, 
257.12  part 4747.1100, subpart 2, and the ability to know when 
257.13  consultation is needed.  
257.14     (b) Advanced academic course work includes, at a minimum, 
257.15  the course work required in paragraph (a) and additional course 
257.16  work in the following areas:  
257.17     (1) advanced study in the areas listed in paragraph (a); 
257.18     (2) chemical dependency and the family; 
257.19     (3) treating substance abuse disorders in culturally 
257.20  diverse and identified populations; 
257.21     (4) dual diagnoses/co-occurring disorders with substance 
257.22  abuse disorders; and 
257.23     (5) ethics and chemical dependency. 
257.24     Subd. 6.  [TEMPORARY PRACTICE PERMIT REQUIREMENTS.] (a) A 
257.25  person may temporarily The commissioner shall issue a temporary 
257.26  permit to practice alcohol and drug counseling prior to being 
257.27  licensed under this chapter if the person: 
257.28     (1) either: 
257.29     (i) meets the associate degree education and practicum 
257.30  requirements of subdivision 3, clause (1); 
257.31     (ii) meets the bachelor's degree education and practicum 
257.32  requirements of subdivision 4, clause (1), item (i); or 
257.33     (iii) submits verification of a current and unrestricted 
257.34  credential for the practice of alcohol and drug counseling from 
257.35  a national certification body or a certification or licensing 
257.36  body from another state, United States territory, or federally 
258.1   recognized tribal authority; 
258.2      (ii) submits verification of the completion of at least 64 
258.3   semester credits, including 270 clock hours or 18 semester 
258.4   credits of formal classroom education in alcohol and drug 
258.5   counseling and at least 440 clock hours of alcohol and drug 
258.6   counseling practicum from an accredited school or educational 
258.7   program; or 
258.8      (iii) meets the requirements of section 148C.11, 
258.9   subdivision 6, clauses (1), (2), and (5); 
258.10     (2) requests applies, in writing, temporary practice status 
258.11  with the commissioner on an application form according to 
258.12  section 148C.0351 provided by the commissioner, which includes 
258.13  the nonrefundable license temporary permit fee as specified in 
258.14  section 148C.12 and an affirmation by the person's supervisor, 
258.15  as defined in paragraph (b) (c), clause (1), and which is signed 
258.16  and dated by the person and the person's supervisor; and 
258.17     (3) has not been disqualified to practice temporarily on 
258.18  the basis of a background investigation under section 148C.09, 
258.19  subdivision 1a; and.  
258.20     (4) has been notified (b) The commissioner must notify the 
258.21  person in writing within 90 days from the date the completed 
258.22  application and all required information is received by the 
258.23  commissioner that whether the person is qualified to practice 
258.24  under this subdivision. 
258.25     (b) (c) A person practicing under this subdivision: 
258.26     (1) may practice only in a program licensed by the 
258.27  department of human services and under tribal jurisdiction or 
258.28  under the direct, on-site supervision of a person who is 
258.29  licensed under this chapter and employed in that licensed 
258.30  program; 
258.31     (2) is subject to the rules of professional conduct set by 
258.32  rule; and 
258.33     (3) is not subject to the continuing education requirements 
258.34  of section 148C.05 148C.075. 
258.35     (c) A person practicing under this subdivision may not must 
258.36  use with the public any the title or description stating or 
259.1   implying that the person is licensed to engage a trainee engaged 
259.2   in the practice of alcohol and drug counseling. 
259.3      (d) The temporary status of A person applying for temporary 
259.4   practice practicing under this subdivision expires on the date 
259.5   the commissioner grants or denies licensing must annually submit 
259.6   a renewal application on forms provided by the commissioner with 
259.7   the renewal fee required in section 148C.12, subdivision 3, and 
259.8   the commissioner may renew the temporary permit if the trainee 
259.9   meets the requirements of this subdivision.  A trainee may renew 
259.10  a practice permit no more than five times. 
259.11     (e) A temporary permit expires if not renewed, upon a 
259.12  change of employment of the trainee or upon a change in 
259.13  supervision, or upon the granting or denial by the commissioner 
259.14  of a license.  
259.15     Subd. 7.  [EFFECT AND SUSPENSION OF TEMPORARY PRACTICE.] 
259.16  Approval of a person's application for temporary practice 
259.17  creates no rights to or expectation of approval from the 
259.18  commissioner for licensure as an alcohol and drug counselor.  
259.19  The commissioner may suspend or restrict a person's temporary 
259.20  practice status according to section 148C.09. 
259.21     <b>[EFFECTIVE DATE.]</b> Subdivisions 1, 2, 3, 4, and 5 are 
259.22  effective January 28, 2003.  Subdivision 6 is effective July 1, 
259.23  2003.  
259.24     Sec. 20.  [148C.045] [ALCOHOL AND DRUG COUNSELOR 
259.25  TECHNICIAN.] 
259.26     An alcohol and drug counselor technician may perform the 
259.27  services described in section 148C.01, subdivision 9, paragraphs 
259.28  (1), (2), and (3), while under the direct supervision of a 
259.29  licensed alcohol and drug counselor.  
259.30     Sec. 21.  Minnesota Statutes 2002, section 148C.05, 
259.31  subdivision 1, is amended to read: 
259.32     Subdivision 1.  [BIENNIAL RENEWAL REQUIREMENTS.] To renew a 
259.33  license, an applicant must: 
259.34     (1) complete a renewal application every two years on a 
259.35  form provided by the commissioner and submit the biennial 
259.36  renewal fee by the deadline; and 
260.1      (2) submit additional information if requested by the 
260.2   commissioner to clarify information presented in the renewal 
260.3   application.  This information must be submitted within 30 days 
260.4   of the commissioner's request.  A license must be renewed every 
260.5   two years.  
260.6      Sec. 22.  Minnesota Statutes 2002, section 148C.05, is 
260.7   amended by adding a subdivision to read: 
260.8      Subd. 1a.  [RENEWAL REQUIREMENTS.] To renew a license, an 
260.9   applicant must submit to the commissioner: 
260.10     (1) a completed and signed application for license renewal, 
260.11  including a signed consent authorizing the commissioner to 
260.12  obtain information about the applicant from third parties, 
260.13  including, but not limited to, employers, former employers, and 
260.14  law enforcement agencies; 
260.15     (2) the renewal fee required under section 148C.12; and 
260.16     (3) additional information as requested by the commissioner 
260.17  to clarify information presented in the renewal application.  
260.18  The licensee must submit information within 30 days of the date 
260.19  of the commissioner's request.  
260.20     Sec. 23.  Minnesota Statutes 2002, section 148C.05, is 
260.21  amended by adding a subdivision to read: 
260.22     Subd. 5.  [LICENSE RENEWAL NOTICE.] At least 60 calendar 
260.23  days before the renewal deadline date in subdivision 6, the 
260.24  commissioner shall mail a renewal notice to the licensee's last 
260.25  known address on file with the commissioner.  The notice must 
260.26  include an application for license renewal, the renewal 
260.27  deadline, and notice of fees required for renewal.  The 
260.28  licensee's failure to receive notice does not relieve the 
260.29  licensee of the obligation to meet the renewal deadline and 
260.30  other requirements for license renewal.  
260.31     Sec. 24.  Minnesota Statutes 2002, section 148C.05, is 
260.32  amended by adding a subdivision to read: 
260.33     Subd. 6.  [RENEWAL DEADLINE AND LAPSE OF LICENSURE.] (a) 
260.34  Licensees must comply with paragraphs (b) to (d).  
260.35     (b) Each license certificate must state an expiration 
260.36  date.  An application for license renewal must be received by 
261.1   the commissioner or postmarked at least 30 calendar days before 
261.2   the expiration date.  If the postmark is illegible, the 
261.3   application must be considered timely if received at least 21 
261.4   calendar days before the expiration date.  
261.5      (c) An application for license renewal not received within 
261.6   the time required under paragraph (b) must be accompanied by a 
261.7   late fee in addition to the renewal fee required in section 
261.8   148C.12.  
261.9      (d) A licensee's license lapses if the licensee fails to 
261.10  submit to the commissioner a license renewal application by the 
261.11  licensure expiration date.  A licensee shall not engage in the 
261.12  practice of alcohol and drug counseling while the license is 
261.13  lapsed.  A licensee whose license has lapsed may renew the 
261.14  license by complying with section 148C.06.  
261.15     Sec. 25.  [148C.055] [INACTIVE OR LAPSED LICENSE.] 
261.16     Subdivision 1.  [INACTIVE LICENSE STATUS.] Unless a 
261.17  complaint is pending against the licensee, a licensee whose 
261.18  license is in good standing may request, in writing, that the 
261.19  license be placed on the inactive list.  If a complaint is 
261.20  pending against a licensee, a license may not be placed on the 
261.21  inactive list until action relating to the complaint is 
261.22  concluded.  The commissioner must receive the request for 
261.23  inactive status before expiration of the license.  A request for 
261.24  inactive status received after the license expiration date must 
261.25  be denied.  A licensee may renew a license that is inactive 
261.26  under this subdivision by meeting the renewal requirements of 
261.27  section 148C.06, subdivision 2, except that payment of a late 
261.28  renewal fee is not required.  A licensee must not practice 
261.29  alcohol and drug counseling while the license is inactive.  
261.30     Subd. 2.  [RENEWAL OF INACTIVE LICENSE.] A licensee whose 
261.31  license is inactive shall renew the inactive status by the 
261.32  inactive status expiration date determined by the commissioner 
261.33  or the license will lapse.  An application for renewal of 
261.34  inactive status must include evidence satisfactory to the 
261.35  commissioner that the licensee has completed 40 clock hours of 
261.36  continuing professional education required in section 148C.075, 
262.1   and be received by the commissioner at least 30 calendar days 
262.2   before the expiration date.  If the postmark is illegible, the 
262.3   application must be considered timely if received at least 21 
262.4   calendar days before the expiration date.  Late renewal of 
262.5   inactive status must be accompanied by a late fee as required in 
262.6   section 148C.12.  
262.7      Subd. 3.  [RENEWAL OF LAPSED LICENSE.] An individual whose 
262.8   license has lapsed for less than two years may renew the license 
262.9   by submitting:  
262.10     (1) a completed and signed license renewal application; 
262.11     (2) the inactive license renewal fee or the renewal fee and 
262.12  the late fee as required under section 148C.12; and 
262.13     (3) proof of having met the continuing education 
262.14  requirements in section 148C.075 since the individual's initial 
262.15  licensure or last license renewal.  The license issued is then 
262.16  effective for the remainder of the next two-year license cycle.  
262.17     Subd. 4.  [LICENSE RENEWAL FOR TWO YEARS OR MORE AFTER 
262.18  LICENSE EXPIRATION DATE.] An individual who submitted a license 
262.19  renewal two years or more after the license expiration date must 
262.20  submit the following:  
262.21     (1) a completed and signed application for licensure, as 
262.22  required by section 148C.0351; 
262.23     (2) the initial license fee as required in section 148C.12; 
262.24  and 
262.25     (3) verified documentation of having achieved a passing 
262.26  score within the past year on an examination required by the 
262.27  commissioner.  
262.28     Sec. 26.  Minnesota Statutes 2002, section 148C.07, is 
262.29  amended to read: 
262.30     148C.07 [RECIPROCITY.] 
262.31     The commissioner shall issue an appropriate license to (a) 
262.32  An individual who holds a current license or other credential to 
262.33  engage in alcohol and drug counseling national certification as 
262.34  an alcohol and drug counselor from another jurisdiction if the 
262.35  commissioner finds that the requirements for that credential are 
262.36  substantially similar to the requirements in sections 148C.01 to 
263.1   148C.11 must file with the commissioner a completed application 
263.2   for licensure by reciprocity containing the information required 
263.3   under this section.  
263.4      (b) The applicant must request the credentialing authority 
263.5   of the jurisdiction in which the credential is held to send 
263.6   directly to the commissioner a statement that the credential is 
263.7   current and in good standing, the applicant's qualifications 
263.8   that entitled the applicant to the credential, and a copy of the 
263.9   jurisdiction's credentialing laws and rules that were in effect 
263.10  at the time the applicant obtained the credential.  
263.11     (c) The commissioner shall issue a license if the 
263.12  commissioner finds that the requirements, which the applicant 
263.13  had to meet to obtain the credential from the other jurisdiction 
263.14  were substantially similar to the current requirements for 
263.15  licensure in this chapter, and the applicant is not otherwise 
263.16  disqualified under section 148C.09.  
263.17     Sec. 27.  [148C.075] [CONTINUING EDUCATION REQUIREMENTS.] 
263.18     Subdivision 1.  [GENERAL REQUIREMENTS.] The commissioner 
263.19  shall establish a two-year continuing education reporting 
263.20  schedule requiring licensees to report completion of the 
263.21  requirements of this section.  Licensees must document 
263.22  completion of a minimum of 40 clock hours of continuing 
263.23  education activities each reporting period.  A licensee may be 
263.24  given credit only for activities that directly relate to the 
263.25  practice of alcohol and drug counseling, the core functions, or 
263.26  the rules of professional conduct in Minnesota Rules, part 
263.27  4747.1400.  The continuing education reporting form must require 
263.28  reporting of the following information:  
263.29     (1) the continuing education activity title; 
263.30     (2) a brief description of the continuing education 
263.31  activity; 
263.32     (3) the sponsor, presenter, or author; 
263.33     (4) the location and attendance dates; 
263.34     (5) the number of clock hours; and 
263.35     (6) a statement that the information is true and correct to 
263.36  the best knowledge of the licensee.  
264.1      Only continuing education obtained during the previous 
264.2   two-year reporting period may be considered at the time of 
264.3   reporting.  Clock hours must be earned and reported in 
264.4   increments of one-half clock hour with a minimum of one clock 
264.5   hour for each continuing education activity.  
264.6      Subd. 2.  [CONTINUING EDUCATION REQUIREMENTS FOR LICENSEE'S 
264.7   FIRST FOUR YEARS.] A licensee must, as part of meeting the clock 
264.8   hour requirement of this section, obtain and document 18 hours 
264.9   of cultural diversity training within the first four years after 
264.10  the licensee's initial license effective date according to the 
264.11  commissioner's reporting schedule.  
264.12     Subd. 3.  [CONTINUING EDUCATION REQUIREMENTS AFTER 
264.13  LICENSEE'S INITIAL FOUR YEARS.] Beginning four years following a 
264.14  licensee's initial license effective date and according to the 
264.15  board's reporting schedule, a licensee must document completion 
264.16  of a minimum of six clock hours each reporting period of 
264.17  cultural diversity training.  Licensees must also document 
264.18  completion of six clock hours in courses directly related to the 
264.19  rules of professional conduct in Minnesota Rules, part 4747.1400.
264.20     Subd. 4.  [STANDARDS FOR APPROVAL.] In order to obtain 
264.21  clock hour credit for a continuing education activity, the 
264.22  activity must: 
264.23     (1) constitute an organized program of learning; 
264.24     (2) reasonably be expected to advance the knowledge and 
264.25  skills of the alcohol and drug counselor; 
264.26     (3) pertain to subjects that directly relate to the 
264.27  practice of alcohol and drug counseling and the core functions 
264.28  of an alcohol and drug counselor, or the rules of professional 
264.29  conduct in Minnesota Rules, part 4747.1400; 
264.30     (4) be conducted by individuals who have education, 
264.31  training, and experience and are knowledgeable about the subject 
264.32  matter; and 
264.33     (5) be presented by a sponsor who has a system to verify 
264.34  participation and maintains attendance records for three years, 
264.35  unless the sponsor provides dated evidence to each participant 
264.36  with the number of clock hours awarded.  
265.1      Sec. 28.  Minnesota Statutes 2002, section 148C.10, 
265.2   subdivision 1, is amended to read: 
265.3      Subdivision 1.  [PRACTICE.] After the commissioner adopts 
265.4   rules, No individual person, other than those individuals 
265.5   exempted under section 148C.11, or 148C.045, shall engage in 
265.6   alcohol and drug counseling practice unless that individual 
265.7   holds a valid license without first being licensed under this 
265.8   chapter as an alcohol and drug counselor.  For purposes of this 
265.9   chapter, an individual engages in the practice of alcohol and 
265.10  drug counseling if the individual performs or offers to perform 
265.11  alcohol and drug counseling services as defined in section 
265.12  148C.01, subdivision 10, or if the individual is held out as 
265.13  able to perform those services.  
265.14     Sec. 29.  Minnesota Statutes 2002, section 148C.10, 
265.15  subdivision 2, is amended to read: 
265.16     Subd. 2.  [USE OF TITLES.] After the commissioner adopts 
265.17  rules, No individual person shall present themselves or any 
265.18  other individual to the public by any title incorporating the 
265.19  words "licensed alcohol and drug counselor" or otherwise hold 
265.20  themselves out to the public by any title or description stating 
265.21  or implying that they are licensed or otherwise qualified to 
265.22  practice alcohol and drug counseling unless that individual 
265.23  holds a valid license.  City, county, and state agency alcohol 
265.24  and drug counselors who are not licensed under sections 148C.01 
265.25  to 148C.11 may use the title "city agency alcohol and drug 
265.26  counselor," "county agency alcohol and drug counselor," or 
265.27  "state agency alcohol and drug counselor."  Hospital alcohol and 
265.28  drug counselors who are not licensed under sections 148C.01 to 
265.29  148C.11 may use the title "hospital alcohol and drug counselor" 
265.30  while acting within the scope of their employment Persons issued 
265.31  a temporary permit must use titles consistent with section 
265.32  148C.04, subdivision 6, paragraph (c). 
265.33     Sec. 30.  Minnesota Statutes 2002, section 148C.11, is 
265.34  amended to read: 
265.35     148C.11 [EXCEPTIONS TO LICENSE REQUIREMENT.] 
265.36     Subdivision 1.  [OTHER PROFESSIONALS.] (a) Nothing in 
266.1   sections 148C.01 to 148C.10 shall prevent this chapter prevents 
266.2   members of other professions or occupations from performing 
266.3   functions for which they are qualified or licensed.  This 
266.4   exception includes, but is not limited to, licensed physicians, 
266.5   registered nurses, licensed practical nurses, licensed 
266.6   psychological practitioners, members of the clergy, American 
266.7   Indian medicine men and women, licensed attorneys, probation 
266.8   officers, licensed marriage and family therapists, licensed 
266.9   social workers, licensed professional counselors, licensed 
266.10  school counselors, and registered occupational therapists or 
266.11  occupational therapy assistants. 
266.12     (b) Nothing in this chapter prohibits technicians and 
266.13  resident managers in programs licensed by the department of 
266.14  human services from discharging their duties as provided in 
266.15  Minnesota Rules, chapter 9530.  
266.16     (c) Any person who is exempt under this section but who 
266.17  elects to obtain a license under this chapter is subject to this 
266.18  chapter to the same extent as other licensees.  
266.19     (d) These persons must not, however, use a title 
266.20  incorporating the words "alcohol and drug counselor" or 
266.21  "licensed alcohol and drug counselor" or otherwise hold 
266.22  themselves out to the public by any title or description stating 
266.23  or implying that they are engaged in the practice of alcohol and 
266.24  drug counseling, or that they are licensed to engage in the 
266.25  practice of alcohol and drug counseling.  Persons engaged in the 
266.26  practice of alcohol and drug counseling are not exempt from the 
266.27  commissioner's jurisdiction solely by the use of one of the 
266.28  above titles. 
266.29     Subd. 2.  [STUDENTS.] Nothing in sections 148C.01 to 
266.30  148C.10 shall prevent students enrolled in an accredited school 
266.31  of alcohol and drug counseling from engaging in the practice of 
266.32  alcohol and drug counseling while under qualified supervision in 
266.33  an accredited school of alcohol and drug counseling.  
266.34     Subd. 3.  [FEDERALLY RECOGNIZED TRIBES; ETHNIC MINORITIES.] 
266.35  (a) Alcohol and drug counselors licensed to practice practicing 
266.36  alcohol and drug counseling according to standards established 
267.1   by federally recognized tribes, while practicing under tribal 
267.2   jurisdiction, are exempt from the requirements of this chapter.  
267.3   In practicing alcohol and drug counseling under tribal 
267.4   jurisdiction, individuals licensed practicing under that 
267.5   authority shall be afforded the same rights, responsibilities, 
267.6   and recognition as persons licensed pursuant to this chapter. 
267.7      (b) The commissioner shall develop special licensing 
267.8   criteria for issuance of a license to alcohol and drug 
267.9   counselors who:  (1) practice alcohol and drug counseling with a 
267.10  member of an ethnic minority population or with a person with a 
267.11  disability as defined by rule; or (2) are employed by agencies 
267.12  whose primary agency service focus addresses ethnic minority 
267.13  populations or persons with a disability as defined by rule.  
267.14  These licensing criteria may differ from the licensing 
267.15  criteria requirements specified in section 148C.04.  To develop, 
267.16  implement, and evaluate the effect of these criteria, the 
267.17  commissioner shall establish a committee comprised of, but not 
267.18  limited to, representatives from the Minnesota commission 
267.19  serving deaf and hard-of-hearing people, the council on affairs 
267.20  of Chicano/Latino people, the council on Asian-Pacific 
267.21  Minnesotans, the council on Black Minnesotans, the council on 
267.22  disability, and the Indian affairs council.  The committee does 
267.23  not expire. 
267.24     (c) The commissioner shall issue a license to an applicant 
267.25  who (1) is an alcohol and drug counselor who is exempt under 
267.26  paragraph (a) from the requirements of this chapter; (2) has at 
267.27  least 2,000 hours of alcohol and drug counselor experience as 
267.28  defined by the core functions; and (3) meets the licensing 
267.29  requirements that are in effect on the date of application under 
267.30  section 148C.04, subdivision 3 or 4, except the written case 
267.31  presentation and oral examination component under section 
267.32  148C.04, subdivision 3, clause (2), or 4, clause (1), item 
267.33  (ii).  When applying for a license under this paragraph, an 
267.34  applicant must follow the procedures for admission to licensure 
267.35  specified under section 148C.0351.  A person who receives a 
267.36  license under this paragraph must complete the written case 
268.1   presentation and satisfactorily pass the oral examination 
268.2   component under section 148C.04, subdivision 3, clause (2), or 
268.3   4, clause (1), item (ii), at the earliest available opportunity 
268.4   after the commissioner begins administering oral examinations.  
268.5   The commissioner may suspend or restrict a person's license 
268.6   according to section 148C.09 if the person fails to complete the 
268.7   written case presentation and satisfactorily pass the oral 
268.8   examination.  This paragraph expires July 1, 2004. 
268.9      Subd. 4.  [HOSPITAL ALCOHOL AND DRUG COUNSELORS.] The 
268.10  licensing of hospital alcohol and drug counselors shall be 
268.11  voluntary, while the counselor is employed by the hospital.  
268.12  Effective January 1, 2006, hospitals employing alcohol and drug 
268.13  counselors shall not be required to employ licensed alcohol and 
268.14  drug counselors, nor shall they require their alcohol and drug 
268.15  counselors to be licensed, however, nothing in this chapter will 
268.16  prohibit hospitals from requiring their counselors to be 
268.17  eligible for licensure.  An alcohol or drug counselor employed 
268.18  by a hospital must be licensed as an alcohol and drug counselor 
268.19  in accordance with this chapter.  
268.20     Subd. 5.  [CITY, COUNTY, AND STATE AGENCY ALCOHOL AND DRUG 
268.21  COUNSELORS.] The licensing of city, county, and state agency 
268.22  alcohol and drug counselors shall be voluntary, while the 
268.23  counselor is employed by the city, county, or state agency.  
268.24  Effective January 1, 2006, city, county, and state agencies 
268.25  employing alcohol and drug counselors shall not be required to 
268.26  employ licensed alcohol and drug counselors, nor shall they 
268.27  require their drug and alcohol counselors to be licensed.  An 
268.28  alcohol and drug counselor employed by a city, county, or state 
268.29  agency must be licensed as an alcohol and drug counselor in 
268.30  accordance with this chapter.  
268.31     Subd. 6.  [TRANSITION PERIOD FOR HOSPITAL AND CITY, COUNTY, 
268.32  AND STATE AGENCY ALCOHOL AND DRUG COUNSELORS.] For the period 
268.33  between July 1, 2003, and January 1, 2006, the commissioner 
268.34  shall grant a license to an individual who is employed as an 
268.35  alcohol and drug counselor at a Minnesota hospital or a city, 
268.36  county, or state agency in Minnesota if the individual:  
269.1      (1) was employed as an alcohol and drug counselor at a 
269.2   hospital or a city, county, or state agency before August 1, 
269.3   2002; 
269.4      (2) has 8,000 hours of alcohol and drug counselor work 
269.5   experience; 
269.6      (3) has completed a written case presentation and 
269.7   satisfactorily passed an oral examination established by the 
269.8   commissioner; 
269.9      (4) has satisfactorily passed a written examination as 
269.10  established by the commissioner; and 
269.11     (5) meets the requirements in section 148C.0351.  
269.12     Sec. 31.  [148C.12] [FEES.] 
269.13     Subdivision 1.  [APPLICATION FEE.] The application fee is 
269.14  $295.  
269.15     Subd. 2.  [BIENNIAL RENEWAL FEE.] The license renewal fee 
269.16  is $295.  If the commissioner changes the renewal schedule and 
269.17  the expiration date is less than two years, the fee must be 
269.18  prorated.  
269.19     Subd. 3.  [TEMPORARY PERMIT FEE.] The initial fee for 
269.20  applicants under section 148C.04, subdivision 6, paragraph (a), 
269.21  is $100.  The fee for annual renewal of a temporary permit is 
269.22  $100.  
269.23     Subd. 4.  [EXAMINATION FEE.] The examination fee for the 
269.24  written examination is $95 and for the oral examination is $200. 
269.25     Subd. 5.  [INACTIVE RENEWAL FEE.] The inactive renewal fee 
269.26  is $150.  
269.27     Subd. 6.  [LATE FEE.] The late fee is 25 percent of the 
269.28  biennial renewal fee, the inactive renewal fee, or the annual 
269.29  fee for renewal of temporary practice status.  
269.30     Subd. 7.  [FEE TO RENEW AFTER EXPIRATION OF LICENSE.] The 
269.31  fee for renewal of a license that has expired for less than two 
269.32  years is the total of the biennial renewal fee, the late fee, 
269.33  and a fee of $100 for review and approval of the continuing 
269.34  education report.  
269.35     Subd. 8.  [FEE FOR LICENSE VERIFICATIONS.] The fee for 
269.36  license verification to institutions and other jurisdictions is 
270.1   $25.  
270.2      Subd. 9.  [SURCHARGE FEE.] Notwithstanding section 
270.3   16A.1285, subdivision 2, a surcharge of $99 shall be paid at the 
270.4   time of initial application for or renewal of an alcohol and 
270.5   drug counselor license until June 30, 2013.  
270.6      Subd. 10.  [NONREFUNDABLE FEES.] All fees are nonrefundable.
270.7      Sec. 32.  Minnesota Statutes 2002, section 150A.05, 
270.8   subdivision 2, is amended to read: 
270.9      Subd. 2.  [EXEMPTIONS AND EXCEPTIONS OF CERTAIN PRACTICES 
270.10  AND OPERATIONS.] Sections 150A.01 to 150A.12 do not apply to: 
270.11     (1) the practice of dentistry or dental hygiene in any 
270.12  branch of the armed services of the United States, the United 
270.13  States Public Health Service, or the United States Veterans 
270.14  Administration; 
270.15     (2) the practice of dentistry, dental hygiene, or dental 
270.16  assisting by undergraduate dental students, dental hygiene 
270.17  students, and dental assisting students of the University of 
270.18  Minnesota, schools of dental hygiene, or schools of dental 
270.19  assisting approved by the board, when acting under the direction 
270.20  and supervision of a licensed dentist or a licensed dental 
270.21  hygienist acting as an instructor; 
270.22     (3) the practice of dentistry by licensed dentists of other 
270.23  states or countries while appearing as clinicians under the 
270.24  auspices of a duly approved dental school or college, or a 
270.25  reputable dental society, or a reputable dental study club 
270.26  composed of dentists; 
270.27     (4) the actions of persons while they are taking 
270.28  examinations for licensure or registration administered or 
270.29  approved by the board pursuant to sections 150A.03, subdivision 
270.30  1, and 150A.06, subdivisions 1, 2, and 2a; 
270.31     (5) the practice of dentistry by dentists and dental 
270.32  hygienists licensed by other states during their functioning as 
270.33  examiners responsible for conducting licensure or registration 
270.34  examinations administered by regional and national testing 
270.35  agencies with whom the board is authorized to affiliate and 
270.36  participate under section 150A.03, subdivision 1, and the 
271.1   practice of dentistry by the regional and national testing 
271.2   agencies during their administering examinations pursuant to 
271.3   section 150A.03, subdivision 1; 
271.4      (6) the use of X-rays or other diagnostic imaging 
271.5   modalities for making radiographs or other similar records in a 
271.6   hospital under the supervision of a physician or dentist or by a 
271.7   person who is credentialed to use diagnostic imaging modalities 
271.8   or X-ray machines for dental treatment, roentgenograms, or 
271.9   dental diagnostic purposes by a credentialing agency other than 
271.10  the board of dentistry; or 
271.11     (7) the service, other than service performed directly upon 
271.12  the person of a patient, of constructing, altering, repairing, 
271.13  or duplicating any denture, partial denture, crown, bridge, 
271.14  splint, orthodontic, prosthetic, or other dental appliance, when 
271.15  performed according to a written work order from a licensed 
271.16  dentist in accordance with section 150A.10, subdivision 3; or 
271.17     (8) services that are included within the practice of 
271.18  denturism, as defined in section 150B.01, and that are provided 
271.19  by denturists licensed under chapter 150B. 
271.20     Sec. 33.  [150B.01] [DEFINITIONS.] 
271.21     Subdivision 1.  [APPLICATION.] The definitions in this 
271.22  section apply to this chapter. 
271.23     Subd. 2.  [ADVISORY COUNCIL.] "Advisory council" means the 
271.24  denture technology advisory council. 
271.25     Subd. 3.  [BOARD.] "Board" means the board of dentistry. 
271.26     Subd. 4.  [DENTURE.] "Denture" means a removable full or 
271.27  partial upper or lower dental appliance to be worn in the mouth 
271.28  to replace missing natural teeth. 
271.29     Subd. 5.  [DENTURIST.] "Denturist" means a person who 
271.30  engages in the practice of denturism and is licensed under this 
271.31  chapter. 
271.32     Subd. 6.  [PRACTICE OF DENTURISM.] "Practice of denturism" 
271.33  means: 
271.34     (1) making, placing, constructing, altering, reproducing, 
271.35  or repairing a denture; and 
271.36     (2) taking impressions and furnishing or supplying a 
272.1   denture directly to a person, or advising the use of the 
272.2   denture, and maintaining a facility for these purposes. 
272.3      Sec. 34.  [150B.02] [PRACTICE OF DENTURISM PERMITTED.] 
272.4      A licensed denturist may engage in the practice of 
272.5   denturism only on patients at facilities that serve individuals 
272.6   who are uninsured or who are Minnesota health care public 
272.7   program recipients, including a hospital; nursing home; home 
272.8   health agency; housing with services; group home serving the 
272.9   elderly or disabled; state-operated facility licensed by the 
272.10  commissioner of human services or the commissioner of 
272.11  corrections; federal, state, or local public health facility; or 
272.12  nonprofit organization. 
272.13     Sec. 35.  [150B.03] [LICENSURE; PROTECTED TITLES AND 
272.14  RESTRICTIONS ON USE.] 
272.15     Subdivision 1.  [LICENSURE REQUIRED.] No person may engage 
272.16  in the practice of denturism unless the person is licensed as a 
272.17  denturist under this chapter. 
272.18     Subd. 2.  [PROTECTED TITLES.] No person may hold himself or 
272.19  herself out to the public as a denturist, use the title 
272.20  "licensed denturist" or "denturist," or use any other titles, 
272.21  words, letters, abbreviations, or insignia indicating or 
272.22  implying that the person is licensed under this chapter or 
272.23  eligible for licensure under this chapter, unless the person has 
272.24  been licensed as a denturist under this chapter. 
272.25     Subd. 3.  [PENALTY.] A person who violates any provision of 
272.26  this section is guilty of a misdemeanor. 
272.27     Sec. 36.  [150B.04] [EXCLUSIONS FROM CHAPTER.] 
272.28     Nothing in this chapter prohibits or restricts: 
272.29     (1) the practice of a health-related occupation by a person 
272.30  who is licensed, registered, or certified in Minnesota and who 
272.31  is practicing within the scope of practice of that occupation; 
272.32     (2) the practice of denturism by a person employed in the 
272.33  service of the federal government while performing duties 
272.34  incident to that employment; 
272.35     (3) the practice of denturism by a student enrolled in a 
272.36  school approved by the board, if the denturism services provided 
273.1   by a student are provided according to a course of instruction 
273.2   or an assignment from an instructor, and under the supervision 
273.3   of an instructor; or 
273.4      (4) work performed by dental laboratories and dental 
273.5   technicians under the written prescription of a dentist. 
273.6      Sec. 37.  [150B.05] [EXAMINATION AND REFERRAL 
273.7   REQUIREMENTS.] 
273.8      Before making and fitting a denture, a denturist must 
273.9   receive from the patient a certificate of oral health from a 
273.10  licensed dentist or physician certifying that a denture will 
273.11  pose no threat to the patient's health.  The certificate must be 
273.12  dated within 60 days from the date the services are performed by 
273.13  the denturist.  Nothing in this section shall be construed to 
273.14  require a certificate of oral health before a denturist can 
273.15  perform services to alter or repair a denture or advise on the 
273.16  use of a denture.  
273.17     Sec. 38.  [150B.06] [DUTIES OF BOARD.] 
273.18     To regulate denturists, the board shall exercise the 
273.19  following powers and duties: 
273.20     (1) establish qualifications for persons applying for 
273.21  licensure; 
273.22     (2) prescribe, administer, and determine the requirements 
273.23  for examinations and establish what constitutes a passing grade 
273.24  for licensure; 
273.25     (3) adopt rules necessary to implement this chapter; 
273.26     (4) evaluate schools, and designate those schools from 
273.27  which graduation will be accepted as proof of an applicant's 
273.28  completion of the course work requirements for licensure; 
273.29     (5) discipline applicants and persons licensed under this 
273.30  chapter who violate a ground for disciplinary action; 
273.31     (6) issue licenses for the practice of denturism; 
273.32     (7) administer oaths and subpoena witnesses to carry out 
273.33  the activities authorized under this chapter; 
273.34     (8) establish forms and procedures necessary to implement 
273.35  this chapter; and 
273.36     (9) hire staff as needed to implement this chapter and act 
274.1   on behalf of the board and the advisory council. 
274.2      Sec. 39.  [150B.07] [DENTURE TECHNOLOGY ADVISORY COUNCIL.] 
274.3      Subdivision 1.  [ESTABLISHMENT; MEMBERSHIP.] (a) The board 
274.4   shall appoint seven persons to a denture technology advisory 
274.5   council.  The advisory council shall consist of: 
274.6      (1) four persons who are licensed denturists under this 
274.7   chapter.  The initial appointees need not be licensed denturists 
274.8   but must have at least five years of experience in the practice 
274.9   of denturism or in a related field; 
274.10     (2) two persons who are public members, as defined in 
274.11  section 214.02, and who are not affiliated with any health care 
274.12  occupation or facility.  At least one of the public members must 
274.13  be over 65 years of age and must represent senior citizens; and 
274.14     (3) one person who is a dentist serving on the board of 
274.15  dentistry. 
274.16     (b) No person may serve more than two consecutive terms on 
274.17  the advisory council. 
274.18     Subd. 2.  [ORGANIZATION.] The advisory council shall be 
274.19  organized and administered under section 15.059. 
274.20     Subd. 3.  [DUTIES.] At the board's request, the advisory 
274.21  council shall: 
274.22     (1) advise the board regarding licensure qualifications for 
274.23  denturists; 
274.24     (2) advise the board regarding requirements for 
274.25  examinations, what constitutes a passing grade on an 
274.26  examination, and prescribing and administering examinations; 
274.27     (3) advise the board regarding rules that are necessary to 
274.28  implement this chapter; 
274.29     (4) review reports of investigations related to individuals 
274.30  and make recommendations to the board as to whether licensure 
274.31  should be denied or disciplinary action should be taken; and 
274.32     (5) perform other duties for advisory councils authorized 
274.33  by chapter 214, as directed by the board. 
274.34     Sec. 40.  [150B.08] [LICENSURE FEES.] 
274.35     Subdivision 1.  [FEES.] The following denturist license 
274.36  fees shall be paid to the board: 
275.1      (1) licensure fee, $905; 
275.2      (2) license renewal fee, $905; 
275.3      (3) inactive license fee, $905; and 
275.4      (4) inactive license renewal fee, $905. 
275.5      Subd. 2.  [SURCHARGE FEE.] Notwithstanding section 
275.6   16A.1285, subdivision 2, a surcharge of $1,644 shall be paid at 
275.7   the time of initial application for or renewal of a denturist 
275.8   license until June 30, 2008.  
275.9      Subd. 3.  [NONREFUNDABLE; WHERE DEPOSITED.] All fees 
275.10  collected are nonrefundable and must be deposited in the state 
275.11  government special revenue fund. 
275.12     Sec. 41.  [150B.09] [REQUIREMENTS FOR LICENSURE.] 
275.13     Subdivision 1.  [GENERAL REQUIREMENTS FOR LICENSURE.] The 
275.14  board shall issue a license to practice denturism to an 
275.15  applicant who: 
275.16     (1) submits a completed application to the board on a form 
275.17  provided by the board; 
275.18     (2) submits the fees required under section 150B.08; 
275.19     (3) documents successful completion of formal training 
275.20  lasting at least two years with a major course of study in the 
275.21  practice of denturism, at a school approved by the board.  The 
275.22  formal training must include special training in oral pathology, 
275.23  infection control, medical emergencies, and clinical experience 
275.24  specified by the board; and 
275.25     (4) passes a written examination and practical examination 
275.26  approved by the board. 
275.27     Subd. 2.  [LICENSURE BY RECIPROCITY.] The board shall issue 
275.28  a license by reciprocity to practice denturism to an applicant 
275.29  who is currently licensed or registered to practice denturism in 
275.30  another state that the board determines has substantially 
275.31  equivalent licensure or registration standards to those in this 
275.32  state, and who: 
275.33     (1) submits a completed application to the board on a form 
275.34  provided by the board; 
275.35     (2) submits the fees required under section 150B.08; 
275.36     (3) provides proof of having successfully passed a written 
276.1   examination and practical examination for denturism in the state 
276.2   where the applicant is licensed or registered, if the board 
276.3   determines that the examinations are substantially equivalent to 
276.4   those in this state; and 
276.5      (4) submits an affidavit from the agency that licenses or 
276.6   registers denturists in the state where the applicant is 
276.7   licensed or registered, attesting to the fact that the applicant 
276.8   is currently licensed or registered in that state. 
276.9      Subd. 3.  [LICENSURE BY EQUIVALENCY DURING TRANSITION 
276.10  PERIOD.] Between July 1, 2003, and June 30, 2005, the board 
276.11  shall issue a license by equivalency to an applicant who: 
276.12     (1) submits a completed application to the board on a form 
276.13  provided by the board; 
276.14     (2) submits the fees required under section 150B.08; 
276.15     (3) submits either: 
276.16     (i) three affidavits from persons other than family members 
276.17  attesting that the applicant has been employed in the practice 
276.18  of denturism for at least five years, or submits documentation 
276.19  of at least 4,000 hours of practical experience in the practice 
276.20  of denturism; or 
276.21     (ii) documentation of successful completion of a training 
276.22  course approved by the board, or successful completion of an 
276.23  equivalent course approved by the board; and 
276.24     (4) passes a written examination and practical examination 
276.25  approved by the board. 
276.26     Subd. 4.  [CONTENT OF LICENSE.] A license must list all 
276.27  addresses where the licensed denturist will engage in the 
276.28  practice of denturism. 
276.29     Subd. 5.  [LICENSE RENEWAL.] The board shall establish by 
276.30  rule the requirements for license renewal.  The requirements for 
276.31  license renewal shall not be more stringent than the 
276.32  requirements for licensure established in this chapter. 
276.33     Sec. 42.  [150B.10] [LICENSURE EXAMINATION.] 
276.34     Subdivision 1.  [EXAMINATION ADMINISTRATION.] The board 
276.35  shall prescribe and administer the written and practical 
276.36  examinations for licensure under this chapter.  The board may 
277.1   hire denturists licensed under this chapter to prepare, 
277.2   administer, and grade the examinations, or may contract with 
277.3   regional examiners to prepare, administer, and grade the 
277.4   examinations. 
277.5      Subd. 2.  [REQUIREMENTS FOR EXAMINATIONS.] The examinations 
277.6   must determine the qualifications, fitness, and ability of the 
277.7   applicant to practice denturism.  The examinations must include 
277.8   a written examination and a practical examination involving a 
277.9   demonstration of skills.  The written examination must cover the 
277.10  following subjects:  head and oral anatomy and physiology, oral 
277.11  pathology, partial denture construction and design, 
277.12  microbiology, clinical dental technology, dental laboratory 
277.13  technology, clinical jurisprudence, asepsis, medical 
277.14  emergencies, and cardiopulmonary resuscitation.  Examinations 
277.15  must be held at least annually.  The first examination must be 
277.16  administered no later than December 31, 2003. 
277.17     Subd. 3.  [FAILURE OF WRITTEN OR PRACTICAL 
277.18  EXAMINATION.] Upon payment of an appropriate fee, an applicant 
277.19  who fails either the written or practical examination may take 
277.20  again the portion of the examination that the applicant failed. 
277.21     Sec. 43.  [150B.11] [INACTIVE LICENSE.] 
277.22     Subdivision 1.  [GENERAL.] Licensed denturists may place 
277.23  their license on inactive status.  A person whose license is on 
277.24  inactive status shall not engage in the practice of denturism in 
277.25  this state without first reactivating the license.  An inactive 
277.26  license must be renewed according to a schedule established by 
277.27  the board.  Failure to renew an inactive license shall result in 
277.28  cancellation of the inactive license. 
277.29     Subd. 2.  [CHANGE TO ACTIVE STATUS.] The board shall by 
277.30  rule establish requirements under which a person whose license 
277.31  is on inactive status may change the license to active status. 
277.32     Subd. 3.  [DISCIPLINARY ACTION.] If a disciplinary 
277.33  proceeding has been initiated to suspend or revoke a person's 
277.34  inactive license, the license shall remain inactive until the 
277.35  proceedings are completed. 
277.36     Sec. 44.  [150B.12] [GROUNDS FOR DISCIPLINARY ACTION; 
278.1   DISCIPLINARY ACTIONS; SUSPENSION.] 
278.2      Subdivision 1.  [GROUNDS FOR DENIAL OF LICENSURE OR 
278.3   DISCIPLINE.] The board may refuse to grant a license, may 
278.4   approve licensure with conditions, or may discipline a denturist 
278.5   licensed under this chapter using any disciplinary actions 
278.6   listed in subdivision 2 on proof that the individual has: 
278.7      (1) intentionally submitted false or misleading information 
278.8   to the board or the advisory council; 
278.9      (2) failed, within 30 days, to provide information in 
278.10  response to a written request by the board or advisory council; 
278.11     (3) engaged in the practice of denturism in an incompetent 
278.12  manner or in a manner that falls below the community standard of 
278.13  care; 
278.14     (4) violated any provision of this chapter; 
278.15     (5) failed to perform the practice of denturism with 
278.16  reasonable judgment, skill, or safety due to the use of alcohol 
278.17  or drugs, or due to other physical or mental impairment; 
278.18     (6) been convicted of violating any state or federal law, 
278.19  rule, or regulation which directly relates to the practice of 
278.20  denturism; 
278.21     (7) aided or abetted another person in violating any 
278.22  provision of this chapter; 
278.23     (8) been disciplined for conduct in the practice of an 
278.24  occupation by the state of Minnesota, another jurisdiction, or a 
278.25  national professional association, if any of the grounds for 
278.26  discipline are the same or substantially equivalent to those in 
278.27  this chapter; 
278.28     (9) not cooperated with the board or advisory council in an 
278.29  investigation of allegations of a ground for disciplinary 
278.30  action; 
278.31     (10) advertised in a manner that is false or misleading; 
278.32     (11) engaged in dishonest, unethical, or unprofessional 
278.33  conduct in connection with the practice of denturism that is 
278.34  likely to deceive, defraud, or harm the public; 
278.35     (12) demonstrated a willful or careless disregard for the 
278.36  health, welfare, or safety of a patient; 
279.1      (13) performed medical diagnosis, practiced dentistry, or 
279.2   provided treatment, other than the practice of denturism, 
279.3   without being licensed to do so under the laws of this state; 
279.4      (14) paid or promised to pay a commission or part of a fee 
279.5   to any person who contacts the denturist for consultation or 
279.6   sends patients to the denturist for treatment; 
279.7      (15) engaged in an incentive payment arrangement, other 
279.8   than that prohibited by clause (14), that promotes 
279.9   overutilization of the practice of denturism, whereby the 
279.10  referring person or person who controls the availability of 
279.11  denturist services to a patient profits unreasonably as a result 
279.12  of patient treatment; 
279.13     (16) engaged in abusive or fraudulent billing practices, 
279.14  including violations of federal Medicare and Medicaid laws, Food 
279.15  and Drug Administration regulations, or state medical assistance 
279.16  laws; 
279.17     (17) obtained money, property, or services from a patient 
279.18  through the use of undue influence, high-pressure sales tactics, 
279.19  harassment, duress, deception, or fraud; 
279.20     (18) performed services for a patient who had no 
279.21  possibility of benefiting from the services; 
279.22     (19) failed to refer a patient to a dentist or physician 
279.23  for examination or services as required under section 150B.05, 
279.24  or otherwise violated section 150B.05; 
279.25     (20) engaged in conduct with a patient that is sexual or 
279.26  may reasonably be interpreted by the patient as sexual, or in 
279.27  any verbal behavior that is seductive or sexually demeaning to a 
279.28  patient; 
279.29     (21) violated a federal or state court order, including a 
279.30  conciliation court judgment, or a disciplinary order issued by 
279.31  the board, related to the person's practice of denturism; or 
279.32     (22) any other just cause related to the practice of 
279.33  denturism. 
279.34     Subd. 2.  [FORMS OF DISCIPLINARY ACTION.] When the board 
279.35  finds that an applicant or a licensed denturist has engaged in a 
279.36  ground for disciplinary action under this chapter, the board may 
280.1   take one or more of the following actions: 
280.2      (1) refuse to grant a license; 
280.3      (2) revoke the license; 
280.4      (3) suspend the license; 
280.5      (4) impose limitations or conditions on the license; 
280.6      (5) impose a civil penalty not exceeding $10,000 for each 
280.7   separate violation, the amount of the civil penalty to be fixed 
280.8   so as to deprive the denturist of any economic advantage gained 
280.9   by the violation charged or to reimburse the board for all costs 
280.10  of the investigation and proceeding; including, but not limited 
280.11  to, the amount paid by the board for services from the office of 
280.12  administrative hearings, attorney fees, court reports, 
280.13  witnesses, reproduction of records, advisory council members' 
280.14  per diem compensation, staff time, and expense incurred by 
280.15  advisory council members and department staff; 
280.16     (6) order the denturist to provide uncompensated 
280.17  professional service under supervision at a designated clinic or 
280.18  other health care institution; 
280.19     (7) censure or reprimand the denturist; or 
280.20     (8) any other action justified by the case. 
280.21     Subd. 3.  [DISCOVERY; SUBPOENAS.] In all matters relating 
280.22  to the board's investigation and enforcement activities related 
280.23  to denturists, the board may issue subpoenas and compel the 
280.24  attendance of witnesses and the production of all necessary 
280.25  papers, books, records, documents, and other evidentiary 
280.26  materials.  Any person failing or refusing to appear or testify 
280.27  regarding any matter about which the person may be lawfully 
280.28  questioned or failing to produce any papers, books, records, 
280.29  documents, or other evidentiary materials in the matter to be 
280.30  heard, after having been required by order of the board or by a 
280.31  subpoena of the board to do so may, upon application by the 
280.32  board to the district court in any district, be ordered to 
280.33  comply with the order or subpoena.  The board may administer 
280.34  oaths to witnesses or take their affirmation.  Depositions may 
280.35  be taken within or outside the state in the manner provided by 
280.36  law for the taking of depositions in civil actions.  A subpoena 
281.1   or other process or paper may be served upon a person it names 
281.2   anywhere within the state by any officer authorized to serve 
281.3   subpoenas or other process in civil actions in the same manner 
281.4   as prescribed by law for service of process issued out of the 
281.5   district court of this state. 
281.6      Subd. 4.  [TEMPORARY SUSPENSION.] In addition to any other 
281.7   remedy provided by law, the board may, without a hearing, 
281.8   temporarily suspend the right of a denturist to practice if the 
281.9   board finds that the denturist has violated a statute or rule 
281.10  that the board has authority to enforce and that continued 
281.11  practice by the denturist would create a serious risk of harm to 
281.12  others.  The suspension takes effect upon service of a written 
281.13  order on the denturist specifying the statute or rule violated.  
281.14  The order remains in effect until the board issues a final order 
281.15  in the matter after a hearing or upon agreement between the 
281.16  board and the denturist.  Service of the order is effective if 
281.17  the order is served on the denturist or the denturist's attorney 
281.18  either personally or by first class mail.  Within ten days of 
281.19  service of the order, the board shall hold a hearing on the sole 
281.20  issue of whether there is a reasonable basis to continue, 
281.21  modify, or lift the suspension.  Evidence presented by the board 
281.22  or denturist must be by affidavit only.  The denturist or the 
281.23  denturist's attorney of record may appear for oral argument.  
281.24  Within five working days after the hearing, the board shall 
281.25  issue an order and, if the suspension is continued, schedule a 
281.26  contested case hearing within 45 days after issuance of the 
281.27  order.  The administrative law judge shall issue a report within 
281.28  30 days after closing of the contested case hearing record.  The 
281.29  board shall issue a final order within 30 days after receipt of 
281.30  that report, the hearing record, and any exceptions to the 
281.31  report filed by the parties. 
281.32     Subd. 5.  [AUTOMATIC SUSPENSION.] A denturist's right to 
281.33  practice is automatically suspended if (1) a guardian is 
281.34  appointed for a denturist, by order of a district court under 
281.35  sections 525.54 to 525.61, or (2) the denturist is committed by 
281.36  order of a district court under chapter 253B.  The right to 
282.1   practice remains suspended until the denturist is restored to 
282.2   capacity by a court and, upon petition by the denturist, the 
282.3   suspension is terminated by the board after a hearing or upon 
282.4   agreement between the board and the denturist. 
282.5      Sec. 45.  [150B.13] [ADDITIONAL REMEDIES.] 
282.6      Subdivision 1.  [CEASE AND DESIST.] (a) The board may issue 
282.7   a cease and desist order to stop a person from violating or 
282.8   threatening to violate a statute, rule, or order which the board 
282.9   has issued or has authority to enforce.  The cease and desist 
282.10  order must state the reason for its issuance and give notice of 
282.11  the person's right to request a hearing under sections 14.57 to 
282.12  14.62.  If, within 15 days of service of the order, the subject 
282.13  of the order fails to request a hearing in writing, the order is 
282.14  the final order of the board and is not reviewable by a court or 
282.15  agency. 
282.16     (b) A hearing must be initiated by the board not later than 
282.17  30 days from the date of the board's receipt of a written 
282.18  hearing request.  Within 30 days of receipt of the 
282.19  administrative law judge's report, and any written agreement or 
282.20  exceptions filed by the parties, the board shall issue a final 
282.21  order modifying, vacating, or making permanent the cease and 
282.22  desist order as the facts require.  The final order remains in 
282.23  effect until modified or vacated by the board. 
282.24     (c) When a request for a stay of a cease and desist order 
282.25  accompanies a timely hearing request, the board may, in the 
282.26  board's discretion, grant the stay.  If the board does not grant 
282.27  a requested stay, the board shall refer the request to the 
282.28  office of administrative hearings within three working days of 
282.29  receipt of the request.  Within ten days after receiving the 
282.30  request from the board, an administrative law judge shall issue 
282.31  a recommendation to grant or deny the stay.  The board shall 
282.32  grant or deny the stay within five working days of receiving the 
282.33  administrative law judge's recommendation. 
282.34     (d) In the event of noncompliance with a cease and desist 
282.35  order, the board may institute a proceeding in district court to 
282.36  obtain injunctive relief or other appropriate relief, including 
283.1   a civil penalty payable to the board not exceeding $10,000 for 
283.2   each separate violation. 
283.3      Subd. 2.  [INJUNCTIVE RELIEF.] In addition to any other 
283.4   remedy provided by law, including the issuance of a cease and 
283.5   desist order under subdivision 1, the board may in the board's 
283.6   own name bring an action in district court for injunctive relief 
283.7   to restrain a denturist from a violation or threatened violation 
283.8   of any statute, rule, or order which the board has authority to 
283.9   administer, enforce, or issue. 
283.10     Subd. 3.  [ADDITIONAL POWERS.] The issuance of a cease and 
283.11  desist order or injunctive relief granted under this section 
283.12  does not relieve a denturist from criminal prosecution by a 
283.13  competent authority or from disciplinary action by the board. 
283.14     Sec. 46.  [150B.14] [REPORTING OBLIGATIONS.] 
283.15     Subdivision 1.  [PERMISSION TO REPORT.] A person who has 
283.16  knowledge of any conduct constituting grounds for disciplinary 
283.17  action relating to the practice of denturism under this chapter 
283.18  may report the violation to the board. 
283.19     Subd. 2.  [INSTITUTIONS.] A state agency, political 
283.20  subdivision, agency of a local unit of government, private 
283.21  agency, hospital, clinic, prepaid medical plan, or other health 
283.22  care institution or organization located in this state shall 
283.23  report to the board any action taken by the agency, institution, 
283.24  or organization or any of its administrators or medical or other 
283.25  committees to revoke, suspend, restrict, or condition a 
283.26  denturist's privilege to practice or treat patients or clients 
283.27  in the institution, or as part of the organization, any denial 
283.28  of privileges, or any other disciplinary action for conduct that 
283.29  might constitute grounds for disciplinary action by the board 
283.30  under this chapter.  The institution, organization, or 
283.31  governmental entity shall also report the resignation of any 
283.32  denturists before the conclusion of any disciplinary action 
283.33  proceeding for conduct that might constitute grounds for 
283.34  disciplinary action under this chapter, or before the 
283.35  commencement of formal charges but after the denturist had 
283.36  knowledge that formal charges were contemplated or were being 
284.1   prepared. 
284.2      Subd. 3.  [PROFESSIONAL SOCIETIES.] A state or local 
284.3   professional society for denturists shall report to the board 
284.4   any termination, revocation, or suspension of membership or any 
284.5   other disciplinary action taken against a denturist.  If the 
284.6   society has received a complaint that might be grounds for 
284.7   discipline under this chapter against a member on which it has 
284.8   not taken any disciplinary action, the society shall report the 
284.9   complaint and the reason why it has not taken action on it or 
284.10  shall direct the complainant to the board. 
284.11     Subd. 4.  [LICENSED PROFESSIONALS.] A licensed health 
284.12  professional shall report to the board personal knowledge of any 
284.13  conduct that the licensed health professional reasonably 
284.14  believes constitutes grounds for disciplinary action under this 
284.15  chapter by a denturist, including conduct indicating that the 
284.16  denturist may be medically incompetent, or may be medically or 
284.17  physically unable to engage safely in the provision of 
284.18  services.  If the information was obtained in the course of a 
284.19  client relationship, the client is a denturist, and the treating 
284.20  individual successfully counsels the denturist to limit or 
284.21  withdraw from practice to the extent required by the impairment, 
284.22  the board may deem this limitation of or withdrawal from 
284.23  practice to be sufficient disciplinary action. 
284.24     Subd. 5.  [INSURERS.] (a) Each insurer authorized to sell 
284.25  insurance described in section 60A.06, subdivision 1, clause 
284.26  (13), and providing professional liability insurance to 
284.27  denturists or the medical joint underwriting association under 
284.28  chapter 62F, shall submit to the board quarterly reports 
284.29  concerning the denturists against whom malpractice settlements 
284.30  and awards have been made.  The report must contain at least the 
284.31  following information: 
284.32     (1) the total number of malpractice settlements or awards 
284.33  made; 
284.34     (2) the date the malpractice settlements or awards were 
284.35  made; 
284.36     (3) the allegations contained in the claim or complaint 
285.1   leading to the settlements or awards made; 
285.2      (4) the dollar amount of each settlement or award; 
285.3      (5) the address of the practice of the denturist against 
285.4   whom an award was made or with whom a settlement was made; and 
285.5      (6) the name of the denturist against whom an award was 
285.6   made or with whom a settlement was made. 
285.7      (b) The insurance company shall, in addition to the above 
285.8   information, submit to the board any information, records, and 
285.9   files, including clients' charts and records, it possesses that 
285.10  tend to substantiate a charge that a denturist may have engaged 
285.11  in conduct violating this chapter. 
285.12     Subd. 6.  [SELF REPORTING.] A denturist shall report to the 
285.13  board any personal action that would require that a report be 
285.14  filed with the board by any person, health care facility, 
285.15  business, or organization under subdivisions 2 to 5.  The 
285.16  denturist shall also report the revocation, suspension, 
285.17  restriction, limitation, or other disciplinary action in this 
285.18  state and report the filing of charges regarding the denturist's 
285.19  license or right of practice in another state or jurisdiction. 
285.20     Subd. 7.  [DEADLINES; FORMS.] Reports required by 
285.21  subdivisions 2 to 6 must be submitted no later than 30 days 
285.22  after the reporter learns of the occurrence of the reportable 
285.23  event or transaction.  The board may provide forms for the 
285.24  submission of the reports required by this section, may require 
285.25  that reports be submitted on the forms provided, and may adopt 
285.26  rules necessary to assure prompt and accurate reporting. 
285.27     Sec. 47.  [150B.15] [INVESTIGATIONS; PROFESSIONAL 
285.28  COOPERATION; EXCHANGING INFORMATION.] 
285.29     Subdivision 1.  [COOPERATION.] A denturist who is the 
285.30  subject of an investigation, or who is questioned in connection 
285.31  with an investigation, by or on behalf of the board, shall 
285.32  cooperate fully with the investigation.  Cooperation includes 
285.33  responding fully to any question raised by or on behalf of the 
285.34  board relating to the subject of the investigation whether tape 
285.35  recorded or not.  Challenges to requests of the board may be 
285.36  brought before the appropriate agency or court. 
286.1      Subd. 2.  [EXCHANGING INFORMATION.] (a) The board shall 
286.2   establish internal operating procedures for: 
286.3      (1) exchanging information with state boards; agencies, 
286.4   including the office of ombudsman for mental health and mental 
286.5   retardation; health-related and law enforcement facilities; 
286.6   departments responsible for licensing health-related 
286.7   occupations, facilities, and programs; and law enforcement 
286.8   personnel in this and other states; and 
286.9      (2) coordinating investigations involving matters within 
286.10  the jurisdiction of more than one regulatory agency. 
286.11     (b) The procedures for exchanging information must provide 
286.12  for forwarding to an entity described in paragraph (a), clause 
286.13  (1), any information or evidence, including the results of 
286.14  investigations, that is relevant to matters within the 
286.15  regulatory jurisdiction of that entity.  The data have the same 
286.16  classification in the possession of the agency receiving the 
286.17  data as they have in the possession of the agency providing the 
286.18  data. 
286.19     (c) The board shall establish procedures for exchanging 
286.20  information with other states regarding disciplinary action 
286.21  against denturists. 
286.22     (d) The board shall forward to another governmental agency 
286.23  any complaints received by the board that do not relate to the 
286.24  board's jurisdiction but that relate to matters within the 
286.25  jurisdiction of the other governmental agency. The agency to 
286.26  which a complaint is forwarded shall advise the board of the 
286.27  disposition of the complaint.  A complaint or other information 
286.28  received by another governmental agency relating to a statute or 
286.29  rule that the board is empowered to enforce must be forwarded to 
286.30  the board to be processed according to this section. 
286.31     (e) The board shall furnish to a person who made a 
286.32  complaint regarding a denturist a description of the actions of 
286.33  the board relating to the complaint. 
286.34     Sec. 48.  Minnesota Statutes 2002, section 319B.40, is 
286.35  amended to read: 
286.36     319B.40 [PROFESSIONAL HEALTH SERVICES.] 
287.1      (a) Individuals who furnish professional services pursuant 
287.2   to a license, registration, or certificate issued by the state 
287.3   of Minnesota to practice medicine pursuant to sections 147.01 to 
287.4   147.22, as a physician assistant pursuant to sections 147A.01 to 
287.5   147A.27, chiropractic pursuant to sections 148.01 to 148.106, 
287.6   registered nursing pursuant to sections 148.171 to 148.285, 
287.7   optometry pursuant to sections 148.52 to 148.62, psychology 
287.8   pursuant to sections 148.88 to 148.98, social work pursuant to 
287.9   sections 148B.18 to 148B.289, dentistry pursuant to sections 
287.10  150A.01 to 150A.12, pharmacy pursuant to sections 151.01 to 
287.11  151.40, or podiatric medicine pursuant to sections 153.01 to 
287.12  153.26 are specifically authorized to practice any of these 
287.13  categories of services in combination if the individuals are 
287.14  organized under this chapter. 
287.15     (b) Denturists licensed pursuant to chapter 150B are 
287.16  authorized to provide professional services in combination with 
287.17  dentists licensed pursuant to sections 150A.01 to 150A.12 if the 
287.18  individuals providing the services are organized under this 
287.19  chapter and if the combination does not impede the independent 
287.20  professional judgment of either party. 
287.21     (c) This authorization does not authorize an individual to 
287.22  practice any profession, or furnish a professional service, for 
287.23  which the individual is not licensed, registered, or certified, 
287.24  but otherwise applies regardless of any contrary provision of a 
287.25  licensing statute or rules adopted pursuant to that statute, 
287.26  related to practicing and organizing in combination with other 
287.27  health services professionals. 
287.28     Sec. 49.  [EVALUATION OF LICENSED DENTURISTS.] 
287.29     The dental access advisory committee established under 
287.30  Minnesota Statutes, section 256B.55, shall evaluate the use of 
287.31  denturists in the public assistance health care programs.  The 
287.32  evaluation shall include the quality of services provided by 
287.33  licensed denturists, the cost effectiveness of using licensed 
287.34  denturists, and the overall effect on dental access.  Based on 
287.35  the evaluation, the advisory committee shall include in the 
287.36  report required to be submitted to the legislature on February 
288.1   1, 2006, recommendations on repealing Minnesota Statutes, 
288.2   section 150B.02, and on the requirement specified in Minnesota 
288.3   Statutes, section 150B.05, that a patient present a denturist 
288.4   with a certificate of oral health from a licensed dentist or 
288.5   physician before receiving certain services from the denturist. 
288.6      Sec. 50.  [REPEALER.] 
288.7      (a) Minnesota Statutes 2002, sections 148C.0351, 
288.8   subdivision 2; 148C.05, subdivisions 2, 3, and 4; 148C.06; and 
288.9   148C.10, subdivision 1a, are repealed.  
288.10     (b) Minnesota Rules, parts 4747.0030, subparts 25, 28, and 
288.11  30; 4747.0040, subpart 3, item A; 4747.0060, subpart 1, items A, 
288.12  B, and D; 4747.0070, subparts 4 and 5; 4747.0080; 4747.0090; 
288.13  4747.0100; 4747.0300; 4747.0400, subparts 2 and 3; 4747.0500; 
288.14  4747.0600; 4747.1000; 4747.1100, subpart 3; and 4747.1600, are 
288.15  repealed. 
288.16                             ARTICLE 7 
288.17                        CHILDREN'S SERVICES 
288.18     Section 1.  Minnesota Statutes 2002, section 124D.23, 
288.19  subdivision 1, is amended to read: 
288.20     Subdivision 1.  [ESTABLISHMENT.] (a) In order to qualify as 
288.21  a family services collaborative, a minimum of one school 
288.22  district, one county, one public health entity, one community 
288.23  action agency as defined in section 119A.375, and one Head Start 
288.24  grantee if the community action agency is not the designated 
288.25  federal grantee for the Head Start program must agree in writing 
288.26  to provide coordinated family services and commit resources to 
288.27  an integrated fund.  Collaboratives are expected to have broad 
288.28  community representation, which may include other local 
288.29  providers, including additional school districts, counties, and 
288.30  public health entities, other municipalities, public libraries, 
288.31  existing culturally specific community organizations, tribal 
288.32  entities, local health organizations, private and nonprofit 
288.33  service providers, child care providers, local foundations, 
288.34  community-based service groups, businesses, local transit 
288.35  authorities or other transportation providers, community action 
288.36  agencies under section 119A.375, senior citizen volunteer 
289.1   organizations, parent organizations, parents, and sectarian 
289.2   organizations that provide nonsectarian services. 
289.3      (b) Members of the governing bodies of political 
289.4   subdivisions involved in the establishment of a family services 
289.5   collaborative shall select representatives of the 
289.6   nongovernmental entities listed in paragraph (a) to serve on the 
289.7   governing board of a collaborative.  The governing body members 
289.8   of the political subdivisions shall select one or more 
289.9   representatives of the nongovernmental entities within the 
289.10  family service collaborative. 
289.11     (c) Two or more family services collaboratives or 
289.12  children's mental health collaboratives may consolidate 
289.13  decision-making, pool resources, and collectively act on behalf 
289.14  of the individual collaboratives, based on a written agreement 
289.15  among the participating collaboratives. 
289.16     Sec. 2.  Minnesota Statutes 2002, section 144.551, 
289.17  subdivision 1, is amended to read: 
289.18     Subdivision 1.  [RESTRICTED CONSTRUCTION OR MODIFICATION.] 
289.19  (a) The following construction or modification may not be 
289.20  commenced:  
289.21     (1) any erection, building, alteration, reconstruction, 
289.22  modernization, improvement, extension, lease, or other 
289.23  acquisition by or on behalf of a hospital that increases the bed 
289.24  capacity of a hospital, relocates hospital beds from one 
289.25  physical facility, complex, or site to another, or otherwise 
289.26  results in an increase or redistribution of hospital beds within 
289.27  the state; and 
289.28     (2) the establishment of a new hospital.  
289.29     (b) This section does not apply to:  
289.30     (1) construction or relocation within a county by a 
289.31  hospital, clinic, or other health care facility that is a 
289.32  national referral center engaged in substantial programs of 
289.33  patient care, medical research, and medical education meeting 
289.34  state and national needs that receives more than 40 percent of 
289.35  its patients from outside the state of Minnesota; 
289.36     (2) a project for construction or modification for which a 
290.1   health care facility held an approved certificate of need on May 
290.2   1, 1984, regardless of the date of expiration of the 
290.3   certificate; 
290.4      (3) a project for which a certificate of need was denied 
290.5   before July 1, 1990, if a timely appeal results in an order 
290.6   reversing the denial; 
290.7      (4) a project exempted from certificate of need 
290.8   requirements by Laws 1981, chapter 200, section 2; 
290.9      (5) a project involving consolidation of pediatric 
290.10  specialty hospital services within the Minneapolis-St. Paul 
290.11  metropolitan area that would not result in a net increase in the 
290.12  number of pediatric specialty hospital beds among the hospitals 
290.13  being consolidated; 
290.14     (6) a project involving the temporary relocation of 
290.15  pediatric-orthopedic hospital beds to an existing licensed 
290.16  hospital that will allow for the reconstruction of a new 
290.17  philanthropic, pediatric-orthopedic hospital on an existing site 
290.18  and that will not result in a net increase in the number of 
290.19  hospital beds.  Upon completion of the reconstruction, the 
290.20  licenses of both hospitals must be reinstated at the capacity 
290.21  that existed on each site before the relocation; 
290.22     (7) the relocation or redistribution of hospital beds 
290.23  within a hospital building or identifiable complex of buildings 
290.24  provided the relocation or redistribution does not result in: 
290.25  (i) an increase in the overall bed capacity at that site; (ii) 
290.26  relocation of hospital beds from one physical site or complex to 
290.27  another; or (iii) redistribution of hospital beds within the 
290.28  state or a region of the state; 
290.29     (8) relocation or redistribution of hospital beds within a 
290.30  hospital corporate system that involves the transfer of beds 
290.31  from a closed facility site or complex to an existing site or 
290.32  complex provided that:  (i) no more than 50 percent of the 
290.33  capacity of the closed facility is transferred; (ii) the 
290.34  capacity of the site or complex to which the beds are 
290.35  transferred does not increase by more than 50 percent; (iii) the 
290.36  beds are not transferred outside of a federal health systems 
291.1   agency boundary in place on July 1, 1983; and (iv) the 
291.2   relocation or redistribution does not involve the construction 
291.3   of a new hospital building; 
291.4      (9) a construction project involving up to 35 new beds in a 
291.5   psychiatric hospital in Rice county that primarily serves 
291.6   adolescents and that receives more than 70 percent of its 
291.7   patients from outside the state of Minnesota; 
291.8      (10) a project to replace a hospital or hospitals with a 
291.9   combined licensed capacity of 130 beds or less if:  (i) the new 
291.10  hospital site is located within five miles of the current site; 
291.11  and (ii) the total licensed capacity of the replacement 
291.12  hospital, either at the time of construction of the initial 
291.13  building or as the result of future expansion, will not exceed 
291.14  70 licensed hospital beds, or the combined licensed capacity of 
291.15  the hospitals, whichever is less; 
291.16     (11) the relocation of licensed hospital beds from an 
291.17  existing state facility operated by the commissioner of human 
291.18  services to a new or existing facility, building, or complex 
291.19  operated by the commissioner of human services; from one 
291.20  regional treatment center site to another; or from one building 
291.21  or site to a new or existing building or site on the same 
291.22  campus; 
291.23     (12) the construction or relocation of hospital beds 
291.24  operated by a hospital having a statutory obligation to provide 
291.25  hospital and medical services for the indigent that does not 
291.26  result in a net increase in the number of hospital beds; 
291.27     (13) a construction project involving the addition of up to 
291.28  31 new beds in an existing nonfederal hospital in Beltrami 
291.29  county; or 
291.30     (14) a construction project involving the addition of up to 
291.31  eight new beds in an existing nonfederal hospital in Otter Tail 
291.32  county with 100 licensed acute care beds; or 
291.33     (15) a project for the construction or relocation of up to 
291.34  20 hospital beds for the operation of up to two psychiatric 
291.35  facilities or units for children provided that the operation of 
291.36  the facilities or units have received the approval of the 
292.1   commissioner of human services. 
292.2      Sec. 3.  Minnesota Statutes 2002, section 245.4874, is 
292.3   amended to read: 
292.4      245.4874 [DUTIES OF COUNTY BOARD.] 
292.5      The county board in each county shall use its share of 
292.6   mental health and Community Social Services Act funds allocated 
292.7   by the commissioner according to a biennial children's mental 
292.8   health component of the community social services plan required 
292.9   under section 245.4888, and approved by the commissioner.  The 
292.10  county board must: 
292.11     (1) develop a system of affordable and locally available 
292.12  children's mental health services according to sections 245.487 
292.13  to 245.4888; 
292.14     (2) establish a mechanism providing for interagency 
292.15  coordination as specified in section 245.4875, subdivision 6; 
292.16     (3) develop a biennial children's mental health component 
292.17  of the community social services plan required under section 
292.18  256E.09 which considers the assessment of unmet needs in the 
292.19  county as reported by the local children's mental health 
292.20  advisory council under section 245.4875, subdivision 5, 
292.21  paragraph (b), clause (3).  The county shall provide, upon 
292.22  request of the local children's mental health advisory council, 
292.23  readily available data to assist in the determination of unmet 
292.24  needs; 
292.25     (4) assure that parents and providers in the county receive 
292.26  information about how to gain access to services provided 
292.27  according to sections 245.487 to 245.4888; 
292.28     (5) coordinate the delivery of children's mental health 
292.29  services with services provided by social services, education, 
292.30  corrections, health, and vocational agencies to improve the 
292.31  availability of mental health services to children and the 
292.32  cost-effectiveness of their delivery; 
292.33     (6) assure that mental health services delivered according 
292.34  to sections 245.487 to 245.4888 are delivered expeditiously and 
292.35  are appropriate to the child's diagnostic assessment and 
292.36  individual treatment plan; 
293.1      (7) provide the community with information about predictors 
293.2   and symptoms of emotional disturbances and how to access 
293.3   children's mental health services according to sections 245.4877 
293.4   and 245.4878; 
293.5      (8) provide for case management services to each child with 
293.6   severe emotional disturbance according to sections 245.486; 
293.7   245.4871, subdivisions 3 and 4; and 245.4881, subdivisions 1, 3, 
293.8   and 5; 
293.9      (9) provide for screening of each child under section 
293.10  245.4885 upon admission to a residential treatment facility, 
293.11  acute care hospital inpatient treatment, or informal admission 
293.12  to a regional treatment center; 
293.13     (10) prudently administer grants and purchase-of-service 
293.14  contracts that the county board determines are necessary to 
293.15  fulfill its responsibilities under sections 245.487 to 245.4888; 
293.16     (11) assure that mental health professionals, mental health 
293.17  practitioners, and case managers employed by or under contract 
293.18  to the county to provide mental health services are qualified 
293.19  under section 245.4871; 
293.20     (12) assure that children's mental health services are 
293.21  coordinated with adult mental health services specified in 
293.22  sections 245.461 to 245.486 so that a continuum of mental health 
293.23  services is available to serve persons with mental illness, 
293.24  regardless of the person's age; and 
293.25     (13) assure that culturally informed mental health 
293.26  consultants are used as necessary to assist the county board in 
293.27  assessing and providing appropriate treatment for children of 
293.28  cultural or racial minority heritage; and 
293.29     (14) arrange for or provide a children's mental health 
293.30  screening to a child receiving child protective services or a 
293.31  child in out-of-home placement, a child for whom parental rights 
293.32  have been terminated, a child alleged or found to be delinquent, 
293.33  and a child found to have committed a juvenile petty offense for 
293.34  the third or subsequent time, unless a screening has been 
293.35  performed within the previous 180 days, or the child is 
293.36  currently under the care of a mental health professional.  The 
294.1   screening shall be conducted with a screening instrument 
294.2   approved by the commissioner of human services and shall be 
294.3   conducted by a mental health practitioner as defined in section 
294.4   245.4871, subdivision 26, or a probation officer or local social 
294.5   services agency staff person who is trained in the use of the 
294.6   screening instrument.  If the screen indicates a need for 
294.7   assessment, the child's family, or if the family lacks mental 
294.8   health insurance, the local social services agency, in 
294.9   consultation with the child's family, shall have conducted a 
294.10  diagnostic assessment, including a functional assessment, as 
294.11  defined in section 245.4871. 
294.12     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
294.13     Sec. 4.  Minnesota Statutes 2002, section 245.493, 
294.14  subdivision 1a, is amended to read: 
294.15     Subd. 1a.  [DUTIES OF CERTAIN COORDINATING BODIES.] (a) By 
294.16  mutual agreement of the collaborative and a coordinating body 
294.17  listed in this subdivision, a children's mental health 
294.18  collaborative or a collaborative established by the merger of a 
294.19  children's mental health collaborative and a family services 
294.20  collaborative under section 124D.23, may assume the duties of a 
294.21  community transition interagency committee established under 
294.22  section 125A.22; an interagency early intervention committee 
294.23  established under section 125A.30; a local advisory council 
294.24  established under section 245.4875, subdivision 5; or a local 
294.25  coordinating council established under section 245.4875, 
294.26  subdivision 6. 
294.27     (b) Two or more family services collaboratives or 
294.28  children's mental health collaboratives may consolidate 
294.29  decision-making, pool resources, and collectively act on behalf 
294.30  of the individual collaboratives, based on a written agreement 
294.31  among the participating collaboratives. 
294.32     Sec. 5.  Minnesota Statutes 2002, section 256B.0625, is 
294.33  amended by adding a subdivision to read: 
294.34     Subd. 35a.  [CHILDREN'S MENTAL HEALTH CRISIS RESPONSE 
294.35  SERVICES.] Medical assistance covers children's mental health 
294.36  crisis response services according to section 256B.0944. 
295.1      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
295.2      Sec. 6.  Minnesota Statutes 2002, section 256B.0625, is 
295.3   amended by adding a subdivision to read: 
295.4      Subd. 35b.  [CHILDREN'S THERAPEUTIC SERVICES AND SUPPORTS.] 
295.5   Medical assistance covers children's therapeutic services and 
295.6   supports according to section 256B.0943. 
295.7      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
295.8      Sec. 7.  Minnesota Statutes 2002, section 256B.0625, is 
295.9   amended by adding a subdivision to read: 
295.10     Subd. 45.  [SUBACUTE PSYCHIATRIC CARE FOR PERSONS UNDER 21 
295.11  YEARS OF AGE.] Medical assistance covers subacute psychiatric 
295.12  care for person under 21 years of age when: 
295.13     (1) the services meet the requirements of Code of Federal 
295.14  Regulations, title 42, section 440.160; 
295.15     (2) the facility is accredited as a psychiatric treatment 
295.16  facility by the joint commission on accreditation of healthcare 
295.17  organizations, the commission on accreditation of rehabilitation 
295.18  facilities, or the council on accreditation; and 
295.19     (3) the facility is licensed by the commissioner of health 
295.20  under section 144.50. 
295.21     Sec. 8.  [256B.0943] [CHILDREN'S THERAPEUTIC SERVICES AND 
295.22  SUPPORTS.] 
295.23     Subdivision 1.  [DEFINITIONS.] For purposes of this 
295.24  section, the following terms have the meanings given them. 
295.25     (a) "Children's therapeutic services and supports" means 
295.26  the flexible package of mental health services for children who 
295.27  require varying therapeutic and rehabilitative levels of 
295.28  intervention.  The services are time-limited interventions that 
295.29  are delivered using various treatment modalities and 
295.30  combinations of services designed to reach treatment outcomes 
295.31  identified in the individual treatment plan. 
295.32     (b) "Clinical supervision" means the overall responsibility 
295.33  of the mental health professional for the control and direction 
295.34  of individualized treatment planning, service delivery, and 
295.35  treatment review for each client.  A mental health professional 
295.36  who is an enrolled Minnesota health care program provider 
296.1   accepts full professional responsibility for a supervisee's 
296.2   actions and decisions, instructs the supervisee in the 
296.3   supervisee's work, and oversees or directs the supervisee's work.
296.4      (c) "County board" means the county board of commissioners 
296.5   or board established under sections 402.01 to 402.10 or 471.59. 
296.6      (d) "Crisis assistance" has the meaning given in section 
296.7   245.4871, subdivision 9a. 
296.8      (e) "Culturally competent provider" means a provider who 
296.9   understands and can utilize to a client's benefit the client's 
296.10  culture when providing services to the client.  A provider may 
296.11  be culturally competent because the provider is of the same 
296.12  cultural or ethnic group as the client or the provider has 
296.13  developed the knowledge and skills through training and 
296.14  experience to provide services to culturally diverse clients. 
296.15     (f) "Day treatment program" for children means a site-based 
296.16  structured program consisting of group psychotherapy for more 
296.17  than three individuals and other intensive therapeutic services 
296.18  provided by a multidisciplinary team, under the clinical 
296.19  supervision of a mental health professional. 
296.20     (g) "Diagnostic assessment" has the meaning given in 
296.21  section 245.4871, subdivision 11. 
296.22     (h) "Direct service time" means the time that a mental 
296.23  health professional, mental health practitioner, or mental 
296.24  health behavioral aide spends face-to-face with a client and the 
296.25  client's family.  Direct service time includes time in which the 
296.26  provider obtains a client's history or provides service 
296.27  components of children's therapeutic services and supports.  
296.28  Direct service time does not include time doing work before and 
296.29  after providing direct services, including scheduling, 
296.30  maintaining clinical records, consulting with others about the 
296.31  client's mental health status, preparing reports, receiving 
296.32  clinical supervision directly related to the client's 
296.33  psychotherapy session, and revising the client's individual 
296.34  treatment plan. 
296.35     (i) "Direction of mental health behavioral aide" means the 
296.36  activities of a mental health professional or mental health 
297.1   practitioner in guiding the mental health behavioral aide in 
297.2   providing services to a client.  The direction of a mental 
297.3   health behavioral aide must be based on the client's 
297.4   individualized treatment plan and meet the requirements in 
297.5   subdivision 6, paragraph (b), clause (5). 
297.6      (j) "Emotional disturbance" has the meaning given in 
297.7   section 245.4871, subdivision 15.  For persons at least age 18 
297.8   but under age 21, mental illness has the meaning given in 
297.9   section 245.462, subdivision 20, paragraph (a). 
297.10     (k) "Individual behavioral plan" means a plan of 
297.11  intervention, treatment, and services for a child written by a 
297.12  mental health professional or mental health practitioner, under 
297.13  the clinical supervision of a mental health professional, to 
297.14  guide the work of the mental health behavioral aide. 
297.15     (l) "Individual treatment plan" has the meaning given in 
297.16  section 245.4871, subdivision 21. 
297.17     (m) "Mental health professional" means an individual as 
297.18  defined in section 245.4871, subdivision 27, clauses (1) to (5), 
297.19  or tribal vendor as defined in section 256B.02, subdivision 7, 
297.20  paragraph (b). 
297.21     (n) "Preschool program" means a day program licensed under 
297.22  Minnesota Rules, parts 9503.0005 to 9503.0175, and enrolled as a 
297.23  children's therapeutic services and supports provider to provide 
297.24  a structured treatment program to a child who is at least 33 
297.25  months old but who has not yet attended the first day of 
297.26  kindergarten. 
297.27     (o) "Skills training" means individual, family, or group 
297.28  training designed to improve the basic functioning of the child 
297.29  with emotional disturbance and the child's family in the 
297.30  activities of daily living and community living, and to improve 
297.31  the social functioning of the child and the child's family in 
297.32  areas important to the child's maintaining or reestablishing 
297.33  residency in the community.  Individual, family, and group 
297.34  skills training must: 
297.35     (1) consist of activities designed to promote skill 
297.36  development of the child and the child's family in the use of 
298.1   age-appropriate daily living skills, interpersonal and family 
298.2   relationships, and leisure and recreational services; 
298.3      (2) consist of activities that will assist the family's 
298.4   understanding of normal child development and to use parenting 
298.5   skills that will help the child with emotional disturbance 
298.6   achieve the goals outlined in the child's individual treatment 
298.7   plan; and 
298.8      (3) promote family preservation and unification, promote 
298.9   the family's integration with the community, and reduce the use 
298.10  of unnecessary out-of-home placement or institutionalization of 
298.11  children with emotional disturbance. 
298.12     Subd. 2.  [COVERED SERVICE COMPONENTS OF CHILDREN'S 
298.13  THERAPEUTIC SERVICES AND SUPPORTS.] (a) Subject to federal 
298.14  approval, medical assistance covers medically necessary 
298.15  children's therapeutic services and supports as defined in this 
298.16  section that an eligible provider entity under subdivisions 4 
298.17  and 5 provides to a client eligible under subdivision 3. 
298.18     (b) The service components of children's therapeutic 
298.19  services and supports are: 
298.20     (1) individual, family, and group psychotherapy; 
298.21     (2) individual, family, or group skills training provide by 
298.22  a mental health professional or mental health practitioner; 
298.23     (3) crisis assistance; 
298.24     (4) mental health behavioral aide services; and 
298.25     (5) direction of a mental health behavioral aide. 
298.26     (c) Service components may be combined to constitute 
298.27  therapeutic programs, including day treatment programs and 
298.28  preschool programs.  Although day treatment and preschool 
298.29  programs have specific client and provider eligibility 
298.30  requirements, medical assistance only pays for the service 
298.31  components listed in paragraph (b). 
298.32     Subd. 3.  [DETERMINATION OF CLIENT ELIGIBILITY.] A client's 
298.33  eligibility to receive children's therapeutic services and 
298.34  supports under this section shall be determined based on a 
298.35  diagnostic assessment by a mental health professional that is 
298.36  performed within 180 days of the initial start of service.  The 
299.1   diagnostic assessment must: 
299.2      (1) include current diagnoses on all five axes of the 
299.3   client's current mental health status; 
299.4      (2) determine whether a child under age 18 has a diagnosis 
299.5   of emotional disturbance or, if the person is between the ages 
299.6   of 18 and 21, whether the person has a mental illness; 
299.7      (3) document children's therapeutic services and supports 
299.8   as medically necessary to address an identified disability, 
299.9   functional impairment, and the individual client's needs and 
299.10  goals; 
299.11     (4) be used in the development of the individualized 
299.12  treatment plan; and 
299.13     (5) be completed annually until age 18.  For individuals 
299.14  between age 18 and 21, unless a client's mental health condition 
299.15  has changed markedly since the client's most recent diagnostic 
299.16  assessment, annual updating is necessary.  For the purpose of 
299.17  this section, "updating" means a written summary, including 
299.18  current diagnoses on all five axes, by a mental health 
299.19  professional of the client's current mental health status and 
299.20  service needs. 
299.21     Subd. 4.  [PROVIDER ENTITY CERTIFICATION.] (a) Effective 
299.22  July 1, 2003, the commissioner shall establish an initial 
299.23  provider entity application and certification process and 
299.24  recertification process to determine whether a provider entity 
299.25  has an administrative and clinical infrastructure that meets the 
299.26  requirements in subdivisions 5 and 6.  The commissioner shall 
299.27  recertify a provider entity at least every three years.  The 
299.28  commissioner shall establish a process for decertification of a 
299.29  provider entity that no longer meets the requirements in this 
299.30  section.  The county, tribe, and the commissioner shall be 
299.31  mutually responsible and accountable for the county's, tribe's, 
299.32  and state's part of the certification, recertification, and 
299.33  decertification processes. 
299.34     (b) For purposes of this section, a provider entity must be:
299.35     (1) an Indian health services facility or a facility owned 
299.36  and operated by a tribe or tribal organization operating as a 
300.1   638 facility under Public Law 93-368 certified by the state; 
300.2      (2) a county-operated entity certified by the state; or 
300.3      (3) a noncounty entity recommended for certification by the 
300.4   provider's host county and certified by the state. 
300.5      Subd. 5.  [PROVIDER ENTITY ADMINISTRATIVE INFRASTRUCTURE 
300.6   REQUIREMENTS.] (a) To be an eligible provider entity under this 
300.7   section, a provider entity must have an administrative 
300.8   infrastructure that establishes authority and accountability for 
300.9   decision making and oversight of functions, including finance, 
300.10  personnel, system management, clinical practice, and performance 
300.11  measurement.  The provider must have written policies and 
300.12  procedures that it reviews and updates every three years and 
300.13  distributes to staff initially and upon each subsequent update. 
300.14     (b) The administrative infrastructure written policies and 
300.15  procedures must include: 
300.16     (1) personnel procedures, including a process for:  (i) 
300.17  recruiting, hiring, training, and retention of culturally and 
300.18  linguistically competent providers; (ii) conducting a criminal 
300.19  background check on all direct service providers and volunteers; 
300.20  (iii) investigating, reporting, and acting on violations of 
300.21  ethical conduct standards; (iv) investigating, reporting, and 
300.22  acting on violations of data privacy policies that are compliant 
300.23  with federal and state laws; (v) utilizing volunteers, including 
300.24  screening applicants, training and supervising volunteers, and 
300.25  providing liability coverage for volunteers; and (vi) 
300.26  documenting that a mental health professional, mental health 
300.27  practitioner, or mental health behavioral aide meets the 
300.28  applicable provider qualification criteria, training criteria 
300.29  under subdivision 8, and clinical supervision or direction of a 
300.30  mental health behavioral aide requirements under subdivision 6; 
300.31     (2) fiscal procedures, including internal fiscal control 
300.32  practices and a process for collecting revenue that is compliant 
300.33  with federal and state laws; 
300.34     (3) if a client is receiving services from a case manager 
300.35  or other provider entity, a service coordination process that 
300.36  ensures services are provided in the most appropriate manner to 
301.1   achieve maximum benefit to the client.  The provider entity must 
301.2   ensure coordination and nonduplication of services consistent 
301.3   with county board coordination procedures established under 
301.4   section 245.4881, subdivision 5; 
301.5      (4) a performance measurement system, including monitoring 
301.6   to determine cultural appropriateness of services identified in 
301.7   the individual treatment plan, as determined by the client's 
301.8   culture, beliefs, values, and language, and family-driven 
301.9   services; and 
301.10     (5) a process to establish and maintain individual client 
301.11  records.  The client's records must include:  (i) the client's 
301.12  personal information; (ii) forms applicable to data privacy; 
301.13  (iii) the client's diagnostic assessment, updates, tests, 
301.14  individual treatment plan, and individual behavior plan, if 
301.15  necessary; (iv) documentation of service delivery as specified 
301.16  under subdivision 6; (v) telephone contacts; (vi) discharge 
301.17  plan; and (vii) if applicable, insurance information. 
301.18     Subd. 6.  [PROVIDER ENTITY CLINICAL INFRASTRUCTURE 
301.19  REQUIREMENTS.] (a) To be an eligible provider entity under this 
301.20  section, a provider entity must have a clinical infrastructure 
301.21  that utilizes diagnostic assessment, an individualized treatment 
301.22  plan, service delivery, and individual treatment plan review 
301.23  that are culturally competent, child-centered, and family-driven 
301.24  to achieve maximum benefit for the client.  The provider entity 
301.25  must review and update the clinical policies and procedures 
301.26  every three years and must distribute the policies and 
301.27  procedures to staff initially and upon each subsequent update. 
301.28     (b) The clinical infrastructure written policies and 
301.29  procedures must include policies and procedures for: 
301.30     (1) providing or obtaining a client's diagnostic assessment 
301.31  that identifies acute and chronic clinical disorders, 
301.32  co-occurring medical conditions, sources of psychological and 
301.33  environmental problems, and a functional assessment.  The 
301.34  functional assessment must clearly summarize the client's 
301.35  individual strengths and needs; 
301.36     (2) developing an individual treatment plan that is:  (i) 
302.1   based on the information in the client's diagnostic assessment; 
302.2   (ii) developed no later than the end of the first psychotherapy 
302.3   session after the completion of the client's diagnostic 
302.4   assessment by the mental health professional who provides the 
302.5   client's psychotherapy; (iii) developed through a 
302.6   child-centered, family-driven planning process that identifies 
302.7   service needs and individualized, planned, and culturally 
302.8   appropriate interventions that contain specific treatment goals 
302.9   and objectives for the client and the client's family or foster 
302.10  family; (iv) reviewed at least once every 90 days and revised, 
302.11  if necessary; and (v) signed by the client or, if appropriate, 
302.12  by the client's parent or other person authorized by statute to 
302.13  consent to mental health services for the client; 
302.14     (3) developing an individual behavior plan that documents 
302.15  services to be provided by the mental health behavioral aide.  
302.16  The individual behavior plan must include:  (i) detailed 
302.17  instructions on the service to be provided; (ii) time allocated 
302.18  to each service; (iii) methods of documenting the child's 
302.19  behavior; (iv) methods of monitoring the child's progress in 
302.20  reaching objectives; and (v) goals to increase or decrease 
302.21  targeted behavior as identified in the individual treatment 
302.22  plan; 
302.23     (4) clinical supervision of the mental health practitioner 
302.24  and mental health behavioral aide.  A mental health professional 
302.25  must document the clinical supervision the professional provides 
302.26  by cosigning individual treatment plans and making entries in 
302.27  the client's record on supervisory activities.  Clinical 
302.28  supervision does not include the authority to make or terminate 
302.29  court-ordered placements of the child.  A clinical supervisor 
302.30  must be available for urgent consultation as required by the 
302.31  individual client's needs or the situation.  Clinical 
302.32  supervision may occur individually or in a small group to 
302.33  discuss treatment and review progress toward goals.  The focus 
302.34  of clinical supervision must be the client's treatment needs and 
302.35  progress and the mental health practitioner's or behavioral 
302.36  aide's ability to provide services; 
303.1      (5) providing direction to a mental health behavioral 
303.2   aide.  For entities that employ mental health behavioral aides, 
303.3   the clinical supervisor must be employed by the provider entity 
303.4   to ensure necessary and appropriate oversight for the client's 
303.5   treatment and continuity of care.  The mental health 
303.6   professional or mental health practitioner giving direction must 
303.7   begin with the goals on the individualized treatment plan, and 
303.8   instruct the mental health behavioral aide on how to construct 
303.9   therapeutic activities and interventions that will lead to goal 
303.10  attainment.  The professional or practitioner giving direction 
303.11  must also instruct the mental health behavioral aide about the 
303.12  client's diagnosis, functional status, and other characteristics 
303.13  that are likely to affect service delivery.  Direction must also 
303.14  include determining that the mental health behavioral aide has 
303.15  the skills to interact with the client and the client's family 
303.16  in ways that convey personal and cultural respect and that the 
303.17  aide actively solicits information relevant to treatment from 
303.18  the family.  The aide must be able to clearly explain the 
303.19  activities the aide is doing with the client and the activities' 
303.20  relationship to treatment goals.  Direction is more didactic 
303.21  than is supervision and requires the professional or 
303.22  practitioner providing it to continuously evaluate the mental 
303.23  health behavioral aide's ability to carry out the activities of 
303.24  the individualized treatment plan and the individualized 
303.25  behavior plan.  When providing direction, the professional or 
303.26  practitioner must:  (i) review progress notes prepared by the 
303.27  mental health behavioral aide for accuracy and consistency with 
303.28  diagnostic assessment, treatment plan, and behavior goals and 
303.29  the professional or practitioner must approve and sign the 
303.30  progress notes; (ii) identify changes in treatment strategies, 
303.31  revise the individual behavior plan, and communicate treatment 
303.32  instructions and methodologies as appropriate to ensure that 
303.33  treatment is implemented correctly; (iii) demonstrate 
303.34  family-friendly behaviors that support healthy collaboration 
303.35  among the child, the child's family, and providers as treatment 
303.36  is planned and implemented; (iv) ensure that the mental health 
304.1   behavioral aide is able to effectively communicate with the 
304.2   child, the child's family, and the provider; and (v) record the 
304.3   results of any evaluation and corrective actions taken to modify 
304.4   the work of the mental health behavioral aide; 
304.5      (6) providing service delivery that implements the 
304.6   individual treatment plan and meets the requirements under 
304.7   subdivision 9; and 
304.8      (7) individual treatment plan review.  The review must 
304.9   determine the extent to which the services have met the goals 
304.10  and objectives in the previous treatment plan.  The review must 
304.11  assess the client's progress and ensure that services and 
304.12  treatment goals continue to be necessary and appropriate to the 
304.13  client and the client's family or foster family.  Revision of 
304.14  the individual treatment plan does not require a new diagnostic 
304.15  assessment unless the client's mental health status has changed 
304.16  markedly.  The updated treatment plan must be signed by the 
304.17  client, if appropriate, and by the client's parent or other 
304.18  person authorized by statute to give consent to the mental 
304.19  health services for the child. 
304.20     Subd. 7.  [QUALIFICATIONS OF INDIVIDUAL AND TEAM 
304.21  PROVIDERS.] (a) An individual or team provider working within 
304.22  the scope of the provider's practice or qualifications may 
304.23  provide service components of children's therapeutic services 
304.24  and supports that are identified as medically necessary in a 
304.25  client's individual treatment plan. 
304.26     (b) An individual provider and multidisciplinary team 
304.27  include: 
304.28     (1) a mental health professional as defined in subdivision 
304.29  1, paragraph (m); 
304.30     (2) a mental health practitioner as defined in section 
304.31  245.4871, subdivision 26.  The mental health practitioner must 
304.32  work under the clinical supervision of a mental health 
304.33  professional; 
304.34     (3) a mental health behavioral aide working under the 
304.35  direction of a mental health professional to implement the 
304.36  rehabilitative mental health services identified in the client's 
305.1   individual treatment plan.  A level I mental health behavioral 
305.2   aide must:  (i) be at least 18 years old; (ii) have a high 
305.3   school diploma or general equivalency diploma (GED) or two years 
305.4   of experience as a primary caregiver to a child with severe 
305.5   emotional disturbance within the previous ten years; and (iii) 
305.6   meet preservices and continuing education requirements under 
305.7   subdivision 8.  A level II mental health behavioral aide must: 
305.8   (i) be at least 18 years old; (ii) have an associate or 
305.9   bachelor's degree or 4,000 hours of experience in delivering 
305.10  clinical services in the treatment of mental illness concerning 
305.11  children or adolescents; and (iii) meet preservice and 
305.12  continuing education requirements in subdivision 8; 
305.13     (4) a preschool program multidisciplinary team that 
305.14  includes at least one mental health professional and one or more 
305.15  of the following individuals under the clinical supervision of a 
305.16  mental health professional:  (i) a mental health practitioner; 
305.17  or (ii) a program person, including a teacher, assistant 
305.18  teacher, or aide, who meets the qualifications and training 
305.19  standards of a level I mental health behavioral aide; or 
305.20     (5) a day treatment multidisciplinary team that includes at 
305.21  least one mental health professional and one mental health 
305.22  practitioner. 
305.23     Subd. 8.  [REQUIRED PRESERVICE AND CONTINUING 
305.24  EDUCATION.] (a) A provider entity shall establish a plan to 
305.25  provide preservice and continuing education for staff.  The plan 
305.26  must clearly describe the type of training necessary to maintain 
305.27  current skills and obtain new skills, and that relates to the 
305.28  provider entity's goals and objectives for services offered. 
305.29     (b) A provider that employs a mental health behavioral aide 
305.30  under this section must require the mental health behavioral 
305.31  aide to complete 30 hours of preservice training.  The 
305.32  preservice training must include topics specified in Minnesota 
305.33  Rules, part 9535.4068, subparts 1 and 2, and parent team 
305.34  training.  The preservice training must include 15 hours of 
305.35  in-person training of a mental health behavioral aide in mental 
305.36  health services delivery and eight hours of parent team 
306.1   training.  Components of parent team training include:  
306.2      (1) partnering with parents; 
306.3      (2) fundamentals of family support; 
306.4      (3) fundamentals of policy and decision making; 
306.5      (4) defining equal partnership; 
306.6      (5) complexities of the parent and service provider 
306.7   partnership in multiple service delivery systems due to system 
306.8   strengths and weaknesses; 
306.9      (6) sibling impacts; 
306.10     (7) support networks; and 
306.11     (8) community resources. 
306.12     (c) A provider entity that employs a mental health 
306.13  practitioner and a mental health behavioral aide to provide 
306.14  children's therapeutic services and supports under this section 
306.15  must require the mental health practitioner and mental health 
306.16  behavioral aide to complete 20 hours of continuing education 
306.17  every two calendar years.  The continuing education must be 
306.18  related to serving the needs of a child with emotional 
306.19  disturbance in the child's home environment and the child's 
306.20  family.  The topics covered in orientation and training must 
306.21  conform to Minnesota Rules, part 9535.4068. 
306.22     (d) The provider entity must document the mental health 
306.23  practitioner's or mental health behavioral aide's annual 
306.24  completion of the required continuing education.  The 
306.25  documentation must include the date, subject, and number of 
306.26  hours of the continuing education, and attendance records, as 
306.27  verified by the staff member's signature, job title, and the 
306.28  instructor's name.  The provider entity must keep documentation 
306.29  for each employee, including records of attendance at 
306.30  professional workshops and conferences, at a central location 
306.31  and in the employee's personnel file. 
306.32     Subd. 9.  [SERVICE DELIVERY CRITERIA.] (a) In delivering 
306.33  services under this section, a certified provider entity must 
306.34  ensure that: 
306.35     (1) each individual provider's caseload size permits the 
306.36  provider to deliver services to both clients with severe, 
307.1   complex needs and clients with less intensive needs.  The 
307.2   provider's caseload size should reasonably enable the provider 
307.3   to play an active role in service planning, monitoring, and 
307.4   delivering services to meet the client's and client's family's 
307.5   needs, as specified in each client's individual treatment plan; 
307.6      (2) site-based programs, including day treatment and 
307.7   preschool programs, provide staffing and facilities to ensure 
307.8   the client's health, safety, and protection of rights, and that 
307.9   the programs are able to implement each client's individual 
307.10  treatment plan; 
307.11     (3) a day treatment program is provided to a group of 
307.12  clients by a multidisciplinary staff under the clinical 
307.13  supervision of a mental health professional.  The day treatment 
307.14  program must be provided in and by:  (i) an outpatient hospital 
307.15  accredited by the joint commission on accreditation of health 
307.16  organizations and licensed under sections 144.50 to 144.55; (ii) 
307.17  a community mental health center under section 245.62; and (iii) 
307.18  an entity that is under contract with the county board to 
307.19  operate a program that meets the requirements of sections 
307.20  245.4712, subdivision 2, and 245.4884, subdivision 2, and 
307.21  Minnesota Rules, parts 9505.0170 to 9505.0475. The day treatment 
307.22  program must stabilize the client's mental health status while 
307.23  developing and improving the client's independent living and 
307.24  socialization skills.  The goal of the day treatment program 
307.25  must be to reduce or relieve the effects of mental illness and 
307.26  provide training to enable the client to live in the community.  
307.27  The program must be available at least one day a week for a 
307.28  minimum three-hour time block.  The three-hour time block must 
307.29  include at least one hour, but no more than two hours, of 
307.30  individual or group psychotherapy.  The remainder of the 
307.31  three-hour time block may include recreation therapy, 
307.32  socialization therapy, or independent living skills therapy, but 
307.33  only if the therapies are included in the client's individual 
307.34  treatment plan.  Day treatment programs are not part of 
307.35  inpatient or residential treatment services; and 
307.36     (4) a preschool program is a structured treatment program 
308.1   offered to a child who is at least 33 months old, but who has 
308.2   not yet reached the first day of kindergarten, by a preschool 
308.3   multidisciplinary team in a day program licensed under Minnesota 
308.4   Rules, parts 9503.0005 to 9503.0175.  The program must be 
308.5   available at least one day a week for a minimum two-hour time 
308.6   block.  The structured treatment program may include individual 
308.7   or group psychotherapy and recreation therapy, socialization 
308.8   therapy, or independent living skills therapy, if included in 
308.9   the client's individual treatment plan. 
308.10     (b) A provider entity must delivery the service components 
308.11  of children's therapeutic services and supports in compliance 
308.12  with the following requirements: 
308.13     (1) individual, family, and group psychotherapy must be 
308.14  delivered as specified in Minnesota Rules, parts 9505.0523; 
308.15     (2) individual, family, or group skills training must be 
308.16  provided by a mental health professional or a mental health 
308.17  practitioner who has a consulting relationship with a mental 
308.18  health professional who accepts full professional responsibility 
308.19  for the training; 
308.20     (3) crisis assistance must be an intense, time-limited, and 
308.21  designed to resolve or stabilize crisis through arrangements for 
308.22  direct intervention and support services to the child and the 
308.23  child's family.  Crisis assistance must utilize resources 
308.24  designed to address abrupt or substantial changes in the 
308.25  functioning of the child or the child's family as evidenced by a 
308.26  sudden change in behavior with negative consequences for well 
308.27  being, a loss of usual coping mechanisms, or the presentation of 
308.28  danger to self or others; 
308.29     (4) medically necessary services that are provided by a 
308.30  mental health behavioral aide must be designed to improve the 
308.31  functioning of the child and support the family in activities of 
308.32  daily and community living.  A mental health behavioral aide 
308.33  must document the delivery of services in written progress 
308.34  notes.  The mental health behavioral aide must implement goals 
308.35  in the treatment plan for the child's emotional disturbance that 
308.36  allow the child to acquire developmentally and therapeutically 
309.1   appropriate daily living skills, social skills, and leisure and 
309.2   recreational skills through targeted activities.  These 
309.3   activities may include: 
309.4      (i) assisting a child as needed with skills development in 
309.5   dressing, eating, and toileting; 
309.6      (ii) assisting, monitoring, and guiding the child to 
309.7   complete tasks, including facilitating the child's participation 
309.8   in medical appointments; 
309.9      (iii) observing the child and intervening to redirect the 
309.10  child's inappropriate behavior; 
309.11     (iv) assisting the child in using age-appropriate 
309.12  self-management skills as related to the child's emotional 
309.13  disorder or mental illness, including problem solving, decision 
309.14  making, communication, conflict resolution, anger management, 
309.15  social skills, and recreational skills; 
309.16     (v) implementing deescalation techniques as recommended by 
309.17  the mental health professional; 
309.18     (vi) implementing any other mental health service that the 
309.19  mental health professional has approved as being within the 
309.20  scope of the behavioral aide's duties; or 
309.21     (vii) assisting the parents to develop and use parenting 
309.22  skills that help the child achieve the goals outlined in the 
309.23  child's individual treatment plan or individual behavioral 
309.24  plan.  Parenting skills must be directed exclusively to the 
309.25  child's treatment; and 
309.26     (5) direction of a mental health behavioral aide must 
309.27  include the following: 
309.28     (i) a total of one hour of on-site observation by a mental 
309.29  health professional during the first 12 hours of service 
309.30  provided to a child; 
309.31     (ii) ongoing on-site observation by a mental health 
309.32  professional or mental health practitioner for at least a total 
309.33  of one hour during every 40 hours of service provided to a 
309.34  child; and 
309.35     (iii) immediate accessibility of the mental health 
309.36  professional or mental health practitioner to the mental health 
310.1   behavioral aide during service provision. 
310.2      Subd. 10.  [SERVICE AUTHORIZATION.] The commissioner shall 
310.3   publish in the State Register a list of health services that 
310.4   require prior authorization, as well as the criteria and 
310.5   standards used to select health services on the list.  The list 
310.6   and the criteria and standards used to formulate the list are 
310.7   not subject to the requirements of sections 14.001 to 14.69.  
310.8   The commissioner's decision on whether prior authorization is 
310.9   required for a health service is not subject to administrative 
310.10  appeal. 
310.11     Subd. 11.  [DOCUMENTATION AND BILLING.] (a) A provider 
310.12  entity must document the services it provides under this 
310.13  section.  The provider entity must ensure that the entity's 
310.14  documentation standards meet the requirements of federal and 
310.15  state laws.  Services billed under this section that are not 
310.16  documented according to this subdivision shall be subject to 
310.17  monetary recovery by the commissioner. 
310.18     (b) An individual mental health provider must promptly 
310.19  document the following in a client's record after providing 
310.20  services to the client: 
310.21     (1) each occurrence of the client's mental health service, 
310.22  including the date, type, length, and scope of the service; 
310.23     (2) the name of the person who gave the service; 
310.24     (3) contact made with other persons interested in the 
310.25  client, including representatives of the courts, corrections 
310.26  systems, or schools.  The provider must document the name and 
310.27  date of each contact; 
310.28     (4) any contact made with the client's other mental health 
310.29  providers, case manager, family members, primary caregiver, 
310.30  legal representative, or the reason the provider did not contact 
310.31  the client's family members, primary caregiver, or legal 
310.32  representative, if applicable; and 
310.33     (5) required clinical supervision, as appropriate. 
310.34     Subd. 12.  [EXCLUDED SERVICES.] The following services are 
310.35  not eligible for medical assistance payment as children's 
310.36  therapeutic services and supports: 
311.1      (1) service components of children's therapeutic services 
311.2   and supports simultaneously provided by more than one provider 
311.3   entity unless prior authorization is obtained; 
311.4      (2) children's therapeutic services and supports provided 
311.5   in violation of medical assistance policy in Minnesota Rules, 
311.6   part 9505.0220; 
311.7      (3) mental health behavioral aide services provided by a 
311.8   personal care assistant who is not qualified as a mental health 
311.9   behavioral aide and employed by a certified children's 
311.10  therapeutic services and supports provider entity; 
311.11     (4) services that are the responsibility of a residential 
311.12  or program license holder, including foster care providers under 
311.13  the terms of a service agreement or administrative rules 
311.14  governing licensure; 
311.15     (5) up to 15 hours of children's therapeutic services and 
311.16  supports provided within a six-month period to a child with 
311.17  severe emotional disturbance who is residing in a hospital, a 
311.18  group home as defined in Minnesota Rules, part 9560.0520, 
311.19  subpart 4, a residential treatment facility licensed under 
311.20  Minnesota Rules, parts 9545.0900 to 9545.1090, a regional 
311.21  treatment center, or other institutional group setting or who is 
311.22  participating in a program of partial hospitalization are 
311.23  eligible for medical assistance payment if part of the discharge 
311.24  plan; and 
311.25     (6) adjunctive activities that may be offered by a provider 
311.26  entity but are not otherwise covered by medical assistance, 
311.27  including: 
311.28     (i) a service that is primarily recreation oriented or that 
311.29  is provided in a setting that is not medically supervised.  This 
311.30  includes sports activities, exercise groups, activities such as 
311.31  craft hours, leisure time, social hours, meal or snack time, 
311.32  trips to community activities, and tours; 
311.33     (ii) a social or educational service that does not have or 
311.34  cannot reasonably be expected to have a therapeutic outcome 
311.35  related to the client's emotional disturbance; 
311.36     (iii) consultation with other providers or service agency 
312.1   staff about the care or progress of a client; 
312.2      (iv) prevention or education programs provided to the 
312.3   community; and 
312.4      (v) treatment for clients with primary diagnoses of alcohol 
312.5   or other drug abuse. 
312.6      <b>[EFFECTIVE DATE.]</b> Unless otherwise specified, this section 
312.7   is effective July 1, 2004. 
312.8      Sec. 9.  [256B.0944] [COVERED SERVICES; CHILDREN'S MENTAL 
312.9   HEALTH CRISIS RESPONSE SERVICES.] 
312.10     Subdivision 1.  [DEFINITIONS.] For purposes of this 
312.11  section, the following terms have the meanings given them. 
312.12     (a) "Mental health crisis" means a child's behavioral, 
312.13  emotional, or psychiatric situation that, but for the provision 
312.14  of crisis response services to the child, would likely result in 
312.15  significantly reduced levels of functioning in primary 
312.16  activities of daily living, an emergency situation, or the 
312.17  child's placement in a more restrictive setting, including, but 
312.18  not limited to, inpatient hospitalization. 
312.19     (b) "Mental health emergency" means a child's behavioral, 
312.20  emotional, or psychiatric situation that causes an immediate 
312.21  need for mental health services and is consistent with section 
312.22  62Q.55.  A physician, mental health professional, or crisis 
312.23  mental health practitioner determines a mental health crisis or 
312.24  emergency for medical assistance reimbursement with input from 
312.25  the client and the client's family, if possible. 
312.26     (c) "Mental health crisis assessment" means an immediate 
312.27  face-to-face assessment by a physician, mental health 
312.28  professional, or mental health practitioner under the clinical 
312.29  supervision of a mental health professional, following a 
312.30  screening that suggests the child may be experiencing a mental 
312.31  health crisis or mental health emergency situation. 
312.32     (d) "Mental health mobile crisis intervention services" 
312.33  means face-to-face, short-term intensive mental health services 
312.34  initiated during a mental health crisis or mental health 
312.35  emergency.  Mental health mobile crisis services must help the 
312.36  recipient cope with immediate stressors, identify and utilize 
313.1   available resources and strengths, and begin to return to the 
313.2   recipient's baseline level of functioning.  Mental health mobile 
313.3   services must be provided on-site by a mobile crisis 
313.4   intervention team outside of an emergency room, urgent care, or 
313.5   an inpatient hospital setting. 
313.6      (e) "Mental health crisis stabilization services" means 
313.7   individualized mental health services provided to a recipient 
313.8   following crisis intervention services that are designed to 
313.9   restore the recipient to the recipient's prior functional 
313.10  level.  The individual treatment plan recommending mental health 
313.11  crisis stabilization must be completed by the intervention team 
313.12  or by staff after an inpatient or urgent care visit.  Mental 
313.13  health crisis stabilization services may be provided in the 
313.14  recipient's home, the home of a family member or friend of the 
313.15  recipient, another community setting, or a short-term 
313.16  supervised, licensed residential program if the service is not 
313.17  included in the facility's cost pool or per diem.  Mental health 
313.18  crisis stabilization is not reimbursable when provided as part 
313.19  of a partial hospitalization or day treatment program. 
313.20     Subd. 2.  [MEDICAL ASSISTANCE COVERAGE.] Medical assistance 
313.21  covers medically necessary children's mental health crisis 
313.22  response services, subject to federal approval, if provided to 
313.23  an eligible recipient under subdivision 3, by a qualified 
313.24  provider entity under subdivision 4 or a qualified individual 
313.25  provider working within the provider's scope of practice, and 
313.26  identified in the recipient's individual crisis treatment plan 
313.27  under subdivision 8. 
313.28     Subd. 3.  [ELIGIBILITY.] An eligible recipient is an 
313.29  individual who: 
313.30     (1) is eligible for medical assistance; 
313.31     (2) is under age 18 or between the ages of 18 and 21; 
313.32     (3) is screened as possibly experiencing a mental health 
313.33  crisis or mental health emergency where a mental health crisis 
313.34  assessment is needed; 
313.35     (4) is assessed as experiencing a mental health crisis or 
313.36  mental health emergency, and mental health mobile crisis 
314.1   intervention or mental health crisis stabilization services are 
314.2   determined to be medically necessary; and 
314.3      (5) meets the criteria for emotional disturbance or mental 
314.4   illness. 
314.5      Subd. 4.  [PROVIDER ENTITY STANDARDS.] (a) A crisis 
314.6   intervention and crisis stabilization provider entity must meet 
314.7   the administrative and clinical standards specified in section 
314.8   256B.0943, subdivisions 5 and 6, meet the standards listed in 
314.9   paragraph (b), and be: 
314.10     (1) an Indian health service facility or facility owned and 
314.11  operated by a tribe or a tribal organization operating under 
314.12  Public Law 93-638 as a 638 facility; 
314.13     (2) a county board-operated entity; or 
314.14     (3) a provider entity that is under contract with the 
314.15  county board in the county where the potential crisis or 
314.16  emergency is occurring. 
314.17     (b) The children's mental health crisis response services 
314.18  provider entity must: 
314.19     (1) ensure that mental health crisis assessment and mobile 
314.20  crisis intervention services are available 24 hours a day, seven 
314.21  days a week; 
314.22     (2) directly provide the services or, if services are 
314.23  subcontracted, the provider entity must maintain clinical 
314.24  responsibility for services and billing; 
314.25     (3) ensure that crisis intervention services are provided 
314.26  in a manner consistent with sections 245.487 to 245.4888; and 
314.27     (4) develop and maintain written policies and procedures 
314.28  regarding service provision that include safety of staff and 
314.29  recipients in high-risk situations. 
314.30     Subd. 5.  [MOBILE CRISIS INTERVENTION STAFF 
314.31  QUALIFICATIONS.] (a) To provide children's mental health mobile 
314.32  crisis intervention services, a mobile crisis intervention team 
314.33  must include: 
314.34     (1) at least two mental health professionals as defined in 
314.35  section 256B.0943, subdivision 1, paragraph (m); or 
314.36     (2) a combination of at least one mental health 
315.1   professional and one mental health practitioner as defined in 
315.2   section 245.4871, subdivision 26, with the required mental 
315.3   health crisis training and under the clinical supervision of a 
315.4   mental health professional on the team. 
315.5      (b) The team must have at least two people with at least 
315.6   one member providing on-site crisis intervention services when 
315.7   needed.  Team members must be experienced in mental health 
315.8   assessment, crisis intervention techniques, and clinical 
315.9   decision making under emergency conditions and have knowledge of 
315.10  local services and resources.  The team must recommend and 
315.11  coordinate the team's services with appropriate local resources, 
315.12  including as the county social services agency, mental health 
315.13  service providers, and local law enforcement, if necessary. 
315.14     Subd. 6.  [INITIAL SCREENING, CRISIS ASSESSMENT, AND MOBILE 
315.15  INTERVENTION TREATMENT PLANNING.] (a) Before initiating mobile 
315.16  crisis intervention services, a screening of the potential 
315.17  crisis situation must be conducted.  The screening may use the 
315.18  resources of crisis assistance and emergency services as defined 
315.19  in sections 245.4871, subdivision 14, and 245.4879, subdivisions 
315.20  1 and 2.  The screening must gather information, determine 
315.21  whether a crisis situation exists, identify the parties 
315.22  involved, and determine an appropriate response. 
315.23     (b) If a crisis exists, a crisis assessment must be 
315.24  completed.  A crisis assessment must evaluate any immediate 
315.25  needs for which emergency services are needed and, as time 
315.26  permits, the recipient's current life situation, sources of 
315.27  stress, mental health problems and symptoms, strengths, cultural 
315.28  considerations, support network, vulnerabilities, and current 
315.29  functioning. 
315.30     (c) If the crisis assessment determines mobile crisis 
315.31  intervention services are needed, the intervention services must 
315.32  be provided promptly.  As the opportunity presents itself during 
315.33  the intervention, at least two members of the mobile crisis 
315.34  intervention team must confer directly or by telephone about the 
315.35  assessment, treatment plan, and actions taken and needed.  At 
315.36  least one of the team members must be on site providing crisis 
316.1   intervention services.  If providing on-site crisis intervention 
316.2   services, a mental health practitioner must seek clinical 
316.3   supervision as required under subdivision 9. 
316.4      (d) The mobile crisis intervention team must develop an 
316.5   initial, brief crisis treatment plan as soon as appropriate but 
316.6   no later than 24 hours after the initial face-to-face 
316.7   intervention.  The plan must address the needs and problems 
316.8   noted in the crisis assessment and include measurable short-term 
316.9   goals, cultural considerations, and frequency and type of 
316.10  services to be provided to achieve the goals and reduce or 
316.11  eliminate the crisis.  The crisis treatment plan must be updated 
316.12  as needed to reflect current goals and services.  The team must 
316.13  involve the client and the client's family in developing and 
316.14  implementing the plan. 
316.15     (e) The team must document in progress notes which 
316.16  short-term goals have been met and when no further crisis 
316.17  intervention services are required. 
316.18     (f) If the client's crisis is stabilized, but the client 
316.19  needs a referral for mental health crisis stabilization services 
316.20  or to other services, the team must provide a referral to these 
316.21  services.  If the recipient has a case manager, planning for 
316.22  other services must be coordinated with the case manager. 
316.23     Subd. 7.  [CRISIS STABILIZATION SERVICES.] (a) Crisis 
316.24  stabilization services must be provided by a mental health 
316.25  professional or a mental health practitioner who works under the 
316.26  clinical supervision of a mental health professional and for a 
316.27  crisis stabilization services provider entity, and must meet the 
316.28  following standards: 
316.29     (1) a crisis stabilization treatment plan must be developed 
316.30  which meets the criteria in subdivision 8; 
316.31     (2) services must be delivered according to the treatment 
316.32  plan and include face-to-face contact with the recipient by 
316.33  qualified staff for further assessment, help with referrals, 
316.34  updating the crisis stabilization treatment plan, supportive 
316.35  counseling, skills training, and collaboration with other 
316.36  service providers in the community; and 
317.1      (3) mental health practitioners must have completed at 
317.2   least 30 hours of training in crisis intervention and 
317.3   stabilization during the past two years. 
317.4      Subd. 8.  [TREATMENT PLAN.] (a)The individual crisis 
317.5   stabilization treatment plan must include, at a minimum: 
317.6      (1) a list of problems identified in the assessment; 
317.7      (2) a list of the recipient's strengths and resources; 
317.8      (3) concrete, measurable short-term goals and tasks to be 
317.9   achieved, including time frames for achievement of the goals; 
317.10     (4) specific objectives directed toward the achievement of 
317.11  each goal; 
317.12     (5) documentation of the participants involved in the 
317.13  service planning; 
317.14     (6) planned frequency and type of services initiated; 
317.15     (7) a crisis response action plan if a crisis should occur; 
317.16  and 
317.17     (8) clear progress notes on the outcome of goals. 
317.18     (b) The client, if clinically appropriate, must be a 
317.19  participant in the development of the crisis stabilization 
317.20  treatment plan.  The client or the client's legal guardian must 
317.21  sign the service plan or documentation must be provided why this 
317.22  was not possible.  A copy of the plan must be given to the 
317.23  client and the client's legal guardian.  The plan should include 
317.24  services arranged, including specific providers where applicable.
317.25     (c) A treatment plan must be developed by a mental health 
317.26  professional or mental health practitioner under the clinical 
317.27  supervision of a mental health professional.  A written plan 
317.28  must be completed within 24 hours of beginning services with the 
317.29  client. 
317.30     Subd. 9.  [SUPERVISION.] (a) A mental health practitioner 
317.31  may provide crisis assessment and mobile crisis intervention 
317.32  services if the following clinical supervision requirements are 
317.33  met: 
317.34     (1) the mental health provider entity must accept full 
317.35  responsibility for the services provided; 
317.36     (2) the mental health professional of the provider entity, 
318.1   who is an employee or under contract with the provider entity, 
318.2   must be immediately available by telephone or in person for 
318.3   clinical supervision; 
318.4      (3) the mental health professional is consulted, in person 
318.5   or by telephone, during the first three hours when a mental 
318.6   health practitioner provides on-site service; and 
318.7      (4) the mental health professional must review and approve 
318.8   the tentative crisis assessment and crisis treatment plan, 
318.9   document the consultation, and sign the crisis assessment and 
318.10  treatment plan within the next business day. 
318.11     (b) If the mobile crisis intervention services continue 
318.12  into a second calendar day, a mental health professional must 
318.13  contact the client face-to-face on the second day to provide 
318.14  services and update the crisis treatment plan.  The on-site 
318.15  observation must be documented in the client's record and signed 
318.16  by the mental health professional. 
318.17     Subd. 10.  [CLIENT RECORD.] The provider must maintain a 
318.18  file for each client that complies with the requirements under 
318.19  section 256B.0943, subdivision 11, and contains the following 
318.20  information: 
318.21     (1) individual crisis treatment plans signed by the 
318.22  recipient, mental health professional, and mental health 
318.23  practitioner who developed the crisis treatment plan, or if the 
318.24  recipient refused to sign the plan, the date and reason stated 
318.25  by the recipient for not signing the plan; 
318.26     (2) signed release of information forms; 
318.27     (3) recipient health information and current medications; 
318.28     (4) emergency contacts for the recipient; 
318.29     (5) case records that document the date of service, place 
318.30  of service delivery, signature of the person providing the 
318.31  service, and the nature, extent, and units of service.  Direct 
318.32  or telephone contact with the recipient's family or others 
318.33  should be documented; 
318.34     (6) required clinical supervision by mental health 
318.35  professionals; 
318.36     (7) summary of the recipient's case reviews by staff; and 
319.1      (8) any written information by the recipient that the 
319.2   recipient wants in the file. 
319.3      Subd. 11.  [EXCLUDED SERVICES.] The following services are 
319.4   excluded from reimbursement under this section: 
319.5      (1) room and board services; 
319.6      (2) services delivered to a recipient while admitted to an 
319.7   inpatient hospital; 
319.8      (3) transportation services under children's mental health 
319.9   crisis response service; 
319.10     (4) services provided and billed by a provider who is not 
319.11  enrolled under medical assistance to provide children's mental 
319.12  health crisis response services; 
319.13     (5) crisis response services provided by a residential 
319.14  treatment center to clients in their facility; 
319.15     (6) services performed by volunteers; 
319.16     (7) direct billing of time spent "on call" when not 
319.17  delivering services to a recipient; 
319.18     (8) provider service time included in case management 
319.19  reimbursement; 
319.20     (9) outreach services to potential recipients; and 
319.21     (10) a mental health service that is not medically 
319.22  necessary. 
319.23     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
319.24     Sec. 10.  Minnesota Statutes 2002, section 256B.0945, 
319.25  subdivision 2, is amended to read: 
319.26     Subd. 2.  [COVERED SERVICES.] All services must be included 
319.27  in a child's individualized treatment or multiagency plan of 
319.28  care as defined in chapter 245.  
319.29     (a) For facilities that are institutions for mental 
319.30  diseases according to statute and regulation or are not 
319.31  institutions for mental diseases but are approved by the 
319.32  commissioner to provide services under this paragraph, medical 
319.33  assistance covers the full contract rate, including room and 
319.34  board if the services meet the requirements of Code of Federal 
319.35  Regulations, title 42, section 440.160.  
319.36     (b) For facilities that are not institutions for mental 
320.1   diseases according to federal statute and regulation and are not 
320.2   providing services under paragraph (a), medical assistance 
320.3   covers mental health related services that are required to be 
320.4   provided by a residential facility under section 245.4882 and 
320.5   administrative rules promulgated thereunder, except for room and 
320.6   board. 
320.7      Sec. 11.  Minnesota Statutes 2002, section 256B.0945, 
320.8   subdivision 4, is amended to read: 
320.9      Subd. 4.  [PAYMENT RATES.] (a) Notwithstanding sections 
320.10  256B.19 and 256B.041, payments to counties for residential 
320.11  services provided by a residential facility shall only be made 
320.12  of federal earnings for services provided under this section, 
320.13  and the nonfederal share of costs for services provided under 
320.14  this section shall be paid by the county from sources other than 
320.15  federal funds or funds used to match other federal funds.  
320.16  Payment to counties for services provided according to 
320.17  subdivision 2, paragraph (a), shall be the federal share of the 
320.18  contract rate.  Payment to counties for services provided 
320.19  according to subdivision 2, paragraph (b), this section shall be 
320.20  a proportion of the per day contract rate that relates to 
320.21  rehabilitative mental health services and shall not include 
320.22  payment for costs or services that are billed to the IV-E 
320.23  program as room and board.  
320.24     (b) The commissioner shall set aside a portion not to 
320.25  exceed five percent of the federal funds earned under this 
320.26  section to cover the state costs of administering this section.  
320.27  Any unexpended funds from the set-aside shall be distributed to 
320.28  the counties in proportion to their earnings under this section. 
320.29     Sec. 12.  Minnesota Statutes 2002, section 259.67, 
320.30  subdivision 4, is amended to read: 
320.31     Subd. 4.  [ELIGIBILITY CONDITIONS.] (a) The placing agency 
320.32  shall use the AFDC requirements as specified in federal law as 
320.33  of July 16, 1996, when determining the child's eligibility for 
320.34  adoption assistance under title IV-E of the Social Security 
320.35  Act.  If the child does not qualify, the placing agency shall 
320.36  certify a child as eligible for state funded adoption assistance 
321.1   only if the following criteria are met:  
321.2      (1) Due to the child's characteristics or circumstances it 
321.3   would be difficult to provide the child an adoptive home without 
321.4   adoption assistance.  
321.5      (2)(i) A placement agency has made reasonable efforts to 
321.6   place the child for adoption without adoption assistance, but 
321.7   has been unsuccessful; or 
321.8      (ii) the child's licensed foster parents desire to adopt 
321.9   the child and it is determined by the placing agency that the 
321.10  adoption is in the best interest of the child. 
321.11     (3) The child has been a ward of the commissioner or, a 
321.12  Minnesota-licensed child-placing agency, or a tribal social 
321.13  service agency of Minnesota recognized by the Secretary of the 
321.14  Interior.  
321.15     (b) For purposes of this subdivision, the characteristics 
321.16  or circumstances that may be considered in determining whether a 
321.17  child is a child with special needs under United States Code, 
321.18  title 42, chapter 7, subchapter IV, part E, or meets the 
321.19  requirements of paragraph (a), clause (1), are the following: 
321.20     (1) The child is a member of a sibling group to be placed 
321.21  as one unit in which at least one sibling is older than 15 
321.22  months of age or is described in clause (2) or (3). 
321.23     (2) The child has documented physical, mental, emotional, 
321.24  or behavioral disabilities. 
321.25     (3) The child has a high risk of developing physical, 
321.26  mental, emotional, or behavioral disabilities. 
321.27     (4) The child is adopted according to tribal law without a 
321.28  termination of parental rights or relinquishment, provided that 
321.29  the tribe has documented the valid reason why the child cannot 
321.30  or should not be returned to the home of the child's parent. 
321.31     (c) When a child's eligibility for adoption assistance is 
321.32  based upon the high risk of developing physical, mental, 
321.33  emotional, or behavioral disabilities, payments shall not be 
321.34  made under the adoption assistance agreement unless and until 
321.35  the potential disability manifests itself as documented by an 
321.36  appropriate health care professional. 
322.1      Sec. 13.  Minnesota Statutes 2002, section 260B.157, 
322.2   subdivision 1, is amended to read: 
322.3      Subdivision 1.  [INVESTIGATION.] Upon request of the court 
322.4   the local social services agency or probation officer shall 
322.5   investigate the personal and family history and environment of 
322.6   any minor coming within the jurisdiction of the court under 
322.7   section 260B.101 and shall report its findings to the court.  
322.8   The court may order any minor coming within its jurisdiction to 
322.9   be examined by a duly qualified physician, psychiatrist, or 
322.10  psychologist appointed by the court.  
322.11     The court shall have a chemical use assessment conducted 
322.12  when a child is (1) found to be delinquent for violating a 
322.13  provision of chapter 152, or for committing a felony-level 
322.14  violation of a provision of chapter 609 if the probation officer 
322.15  determines that alcohol or drug use was a contributing factor in 
322.16  the commission of the offense, or (2) alleged to be delinquent 
322.17  for violating a provision of chapter 152, if the child is being 
322.18  held in custody under a detention order.  The assessor's 
322.19  qualifications and the assessment criteria shall comply with 
322.20  Minnesota Rules, parts 9530.6600 to 9530.6655.  If funds under 
322.21  chapter 254B are to be used to pay for the recommended 
322.22  treatment, the assessment and placement must comply with all 
322.23  provisions of Minnesota Rules, parts 9530.6600 to 9530.6655 and 
322.24  9530.7000 to 9530.7030.  The commissioner of human services 
322.25  shall reimburse the court for the cost of the chemical use 
322.26  assessment, up to a maximum of $100. 
322.27     The court shall have a children's mental health screening 
322.28  conducted when a child is alleged to be delinquent or is found 
322.29  to be delinquent.  The screening shall be conducted with a 
322.30  screening instrument approved by the commissioner of human 
322.31  services and shall be conducted by a mental health practitioner 
322.32  as defined in section 245.4871, subdivision 26, or a probation 
322.33  officer who is trained in the use of the screening instrument.  
322.34  If the screening indicates a need for assessment, the local 
322.35  social services agency, in consultation with the child's family, 
322.36  shall have a diagnostic assessment conducted, including a 
323.1   functional assessment, as defined in section 245.4871. 
323.2      With the consent of the commissioner of corrections and 
323.3   agreement of the county to pay the costs thereof, the court may, 
323.4   by order, place a minor coming within its jurisdiction in an 
323.5   institution maintained by the commissioner for the detention, 
323.6   diagnosis, custody and treatment of persons adjudicated to be 
323.7   delinquent, in order that the condition of the minor be given 
323.8   due consideration in the disposition of the case.  Any funds 
323.9   received under the provisions of this subdivision shall not 
323.10  cancel until the end of the fiscal year immediately following 
323.11  the fiscal year in which the funds were received.  The funds are 
323.12  available for use by the commissioner of corrections during that 
323.13  period and are hereby appropriated annually to the commissioner 
323.14  of corrections as reimbursement of the costs of providing these 
323.15  services to the juvenile courts.  
323.16     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
323.17     Sec. 14.  Minnesota Statutes 2002, section 260B.176, 
323.18  subdivision 2, is amended to read: 
323.19     Subd. 2.  [REASONS FOR DETENTION.] (a) If the child is not 
323.20  released as provided in subdivision 1, the person taking the 
323.21  child into custody shall notify the court as soon as possible of 
323.22  the detention of the child and the reasons for detention.  
323.23     (b) No child may be detained in a juvenile secure detention 
323.24  facility or shelter care facility longer than 36 hours, 
323.25  excluding Saturdays, Sundays, and holidays, after being taken 
323.26  into custody for a delinquent act as defined in section 
323.27  260B.007, subdivision 6, unless a petition has been filed and 
323.28  the judge or referee determines pursuant to section 260B.178 
323.29  that the child shall remain in detention.  
323.30     (c) No child may be detained in an adult jail or municipal 
323.31  lockup longer than 24 hours, excluding Saturdays, Sundays, and 
323.32  holidays, or longer than six hours in an adult jail or municipal 
323.33  lockup in a standard metropolitan statistical area, after being 
323.34  taken into custody for a delinquent act as defined in section 
323.35  260B.007, subdivision 6, unless: 
323.36     (1) a petition has been filed under section 260B.141; and 
324.1      (2) a judge or referee has determined under section 
324.2   260B.178 that the child shall remain in detention. 
324.3      After August 1, 1991, no child described in this paragraph 
324.4   may be detained in an adult jail or municipal lockup longer than 
324.5   24 hours, excluding Saturdays, Sundays, and holidays, or longer 
324.6   than six hours in an adult jail or municipal lockup in a 
324.7   standard metropolitan statistical area, unless the requirements 
324.8   of this paragraph have been met and, in addition, a motion to 
324.9   refer the child for adult prosecution has been made under 
324.10  section 260B.125.  Notwithstanding this paragraph, continued 
324.11  detention of a child in an adult detention facility outside of a 
324.12  standard metropolitan statistical area county is permissible if: 
324.13     (i) the facility in which the child is detained is located 
324.14  where conditions of distance to be traveled or other ground 
324.15  transportation do not allow for court appearances within 24 
324.16  hours.  A delay not to exceed 48 hours may be made under this 
324.17  clause; or 
324.18     (ii) the facility is located where conditions of safety 
324.19  exist.  Time for an appearance may be delayed until 24 hours 
324.20  after the time that conditions allow for reasonably safe 
324.21  travel.  "Conditions of safety" include adverse life-threatening 
324.22  weather conditions that do not allow for reasonably safe travel. 
324.23     The continued detention of a child under clause (i) or (ii) 
324.24  must be reported to the commissioner of corrections. 
324.25     (d) If a child described in paragraph (c) is to be detained 
324.26  in a jail beyond 24 hours, excluding Saturdays, Sundays, and 
324.27  holidays, the judge or referee, in accordance with rules and 
324.28  procedures established by the commissioner of corrections, shall 
324.29  notify the commissioner of the place of the detention and the 
324.30  reasons therefor.  The commissioner shall thereupon assist the 
324.31  court in the relocation of the child in an appropriate juvenile 
324.32  secure detention facility or approved jail within the county or 
324.33  elsewhere in the state, or in determining suitable 
324.34  alternatives.  The commissioner shall direct that a child 
324.35  detained in a jail be detained after eight days from and 
324.36  including the date of the original detention order in an 
325.1   approved juvenile secure detention facility with the approval of 
325.2   the administrative authority of the facility.  If the court 
325.3   refers the matter to the prosecuting authority pursuant to 
325.4   section 260B.125, notice to the commissioner shall not be 
325.5   required.  
325.6      (e) When a child is detained for an alleged delinquent act 
325.7   in a state licensed juvenile facility or program, or when a 
325.8   child is detained in an adult jail or municipal lockup as 
325.9   provided in paragraph (c), the supervisor of the facility shall, 
325.10  if the child's parent or legal guardian consents, have a 
325.11  children's mental health screening conducted with a screening 
325.12  instrument approved by the commissioner of human services, 
325.13  unless a screening has been performed within the previous 180 
325.14  days or the child is currently under the care of a mental health 
325.15  professional.  The screening shall be conducted by a mental 
325.16  health practitioner as defined in section 245.4871, subdivision 
325.17  26, or a probation officer who is trained in the use of the 
325.18  screening instrument.  The screening shall be conducted after 
325.19  the initial detention hearing has been held and the court has 
325.20  ordered the child continued in detention.  The results of the 
325.21  screening may only be presented to the court at the 
325.22  dispositional phase of the court proceedings on the matter 
325.23  unless the parent or legal guardian consents to presentation at 
325.24  a different time.  If the screening indicates a need for 
325.25  assessment, the local social services agency or probation 
325.26  officer, with the approval of the child's parent or legal 
325.27  guardian, shall have a diagnostic assessment conducted, 
325.28  including a functional assessment, as defined in section 
325.29  245.4871. 
325.30     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
325.31     Sec. 15.  Minnesota Statutes 2002, section 260B.178, 
325.32  subdivision 1, is amended to read: 
325.33     Subdivision 1.  [HEARING AND RELEASE REQUIREMENTS.] (a) The 
325.34  court shall hold a detention hearing: 
325.35     (1) within 36 hours of the time the child was taken into 
325.36  custody, excluding Saturdays, Sundays, and holidays, if the 
326.1   child is being held at a juvenile secure detention facility or 
326.2   shelter care facility; or 
326.3      (2) within 24 hours of the time the child was taken into 
326.4   custody, excluding Saturdays, Sundays, and holidays, if the 
326.5   child is being held at an adult jail or municipal lockup.  
326.6      (b) Unless there is reason to believe that the child would 
326.7   endanger self or others, not return for a court hearing, run 
326.8   away from the child's parent, guardian, or custodian or 
326.9   otherwise not remain in the care or control of the person to 
326.10  whose lawful custody the child is released, or that the child's 
326.11  health or welfare would be immediately endangered, the child 
326.12  shall be released to the custody of a parent, guardian, 
326.13  custodian, or other suitable person, subject to reasonable 
326.14  conditions of release including, but not limited to, a 
326.15  requirement that the child undergo a chemical use assessment as 
326.16  provided in section 260B.157, subdivision 1, and a children's 
326.17  mental health screening as provided in section 260B.176, 
326.18  subdivision 2, paragraph (e).  In determining whether the 
326.19  child's health or welfare would be immediately endangered, the 
326.20  court shall consider whether the child would reside with a 
326.21  perpetrator of domestic child abuse.  
326.22     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
326.23     Sec. 16.  Minnesota Statutes 2002, section 260B.193, 
326.24  subdivision 2, is amended to read: 
326.25     Subd. 2.  [CONSIDERATION OF REPORTS.] Before making a 
326.26  disposition in a case, or appointing a guardian for a child, the 
326.27  court may consider any report or recommendation made by the 
326.28  local social services agency, probation officer, licensed 
326.29  child-placing agency, foster parent, guardian ad litem, tribal 
326.30  representative, or other authorized advocate for the child or 
326.31  child's family, a school district concerning the effect on 
326.32  student transportation of placing a child in a school district 
326.33  in which the child is not a resident, or any other information 
326.34  deemed material by the court.  In addition, the court may 
326.35  consider the results of the children's mental health screening 
326.36  provided in section 260B.157, subdivision 1. 
327.1      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
327.2      Sec. 17.  Minnesota Statutes 2002, section 260B.235, 
327.3   subdivision 6, is amended to read: 
327.4      Subd. 6.  [ALTERNATIVE DISPOSITION.] In addition to 
327.5   dispositional alternatives authorized by subdivision 3 4, in the 
327.6   case of a third or subsequent finding by the court pursuant to 
327.7   an admission in court or after trial that a child has committed 
327.8   a juvenile alcohol or controlled substance offense, the juvenile 
327.9   court shall order a chemical dependency evaluation of the child 
327.10  and if warranted by the evaluation, the court may order 
327.11  participation by the child in an inpatient or outpatient 
327.12  chemical dependency treatment program, or any other treatment 
327.13  deemed appropriate by the court.  In the case of a third or 
327.14  subsequent finding that a child has committed any juvenile petty 
327.15  offense, the court shall order a children's mental health 
327.16  screening be conducted as provided in section 260B.157, 
327.17  subdivision 1, and if indicated by the screening, to undergo a 
327.18  diagnostic assessment, including a functional assessment, as 
327.19  defined in section 245.4871. 
327.20     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
327.21     Sec. 18.  [MEDICAL ASSISTANCE FOR MENTAL HEALTH SERVICES 
327.22  PROVIDED IN OUT-OF-HOME PLACEMENT SETTINGS.] 
327.23     The commissioner of human services shall develop a plan in 
327.24  conjunction with the commissioner of corrections and 
327.25  representatives from counties, provider groups, and other 
327.26  stakeholders, to secure medical assistance funding for mental 
327.27  health-related services provided in out-of-home placement 
327.28  settings, including treatment foster care, group homes, and 
327.29  residential programs licensed under Minnesota Statutes, chapters 
327.30  241 and 245A.  The plan must include proposed legislation, 
327.31  fiscal implications, and other pertinent information. 
327.32     Treatment foster care services must be provided by a child 
327.33  placing agency licensed under Minnesota Rules, parts 9543.0010 
327.34  to 9543.0150 or 9545.0755 to 9545.0845.  
327.35     The commissioner shall report to the legislature by January 
327.36  15, 2004. 
328.1      Sec. 19.  [TRANSITION TO CHILDREN'S THERAPEUTIC SERVICES 
328.2   AND SUPPORTS.] 
328.3      Beginning July 1, 2003, the commissioner shall use the 
328.4   provider certification process under Minnesota Statutes, section 
328.5   256B.0943, instead of the provider certification process 
328.6   required in Minnesota Rules, parts 9505.0324; 9505.0326; and 
328.7   9505.0327. 
328.8      Sec. 20.  [REVISOR'S INSTRUCTION.] 
328.9      For sections in Minnesota Statutes and Minnesota Rules 
328.10  affected by the repealed sections in this article, the revisor 
328.11  shall delete internal cross-references where appropriate and 
328.12  make changes necessary to correct the punctuation, grammar, or 
328.13  structure of the remaining text and preserve its meaning. 
328.14     Sec. 21.  [REPEALER.] 
328.15     (a) Minnesota Statutes 2002, sections 256B.0945, 
328.16  subdivision 10, is repealed. 
328.17     (b) Minnesota Statutes 2002, section 256B.0625, 
328.18  subdivisions 35 and 36, are repealed effective July 1, 2004. 
328.19     (c) Minnesota Rules, parts 9505.0324; 9505.0326; and 
328.20  9505.0327, are repealed effective July 1, 2004. 
328.21                             ARTICLE 8
328.22             PROHIBITED TRANSFERS; LIENS; ESTATE CLAIMS
328.23     Section 1.  Minnesota Statutes 2002, section 256B.0595, 
328.24  subdivision 1, is amended to read: 
328.25     Subdivision 1.  [PROHIBITED TRANSFERS.] (a) For transfers 
328.26  of assets made on or before August 10, 1993, if a person or the 
328.27  person's spouse has given away, sold, or disposed of, for less 
328.28  than fair market value, any asset or interest therein, except 
328.29  assets other than the homestead that are excluded under the 
328.30  supplemental security program, within 30 months before or any 
328.31  time after the date of institutionalization if the person has 
328.32  been determined eligible for medical assistance, or within 30 
328.33  months before or any time after the date of the first approved 
328.34  application for medical assistance if the person has not yet 
328.35  been determined eligible for medical assistance, the person is 
328.36  ineligible for long-term care services for the period of time 
329.1   determined under subdivision 2.  
329.2      (b) Effective for transfers made after August 10, 1993, a 
329.3   person, a person's spouse, or any person, court, or 
329.4   administrative body with legal authority to act in place of, on 
329.5   behalf of, at the direction of, or upon the request of the 
329.6   person or person's spouse, may not give away, sell, or dispose 
329.7   of, for less than fair market value, any asset or interest 
329.8   therein, except assets other than the homestead that are 
329.9   excluded under the supplemental security income program, for the 
329.10  purpose of establishing or maintaining medical assistance 
329.11  eligibility.  This applies to all transfers, including those 
329.12  made by a community spouse after the month in which the 
329.13  institutionalized spouse is determined eligible for medical 
329.14  assistance.  For purposes of determining eligibility for 
329.15  long-term care services, any transfer of such assets within 36 
329.16  months before or any time after an institutionalized person 
329.17  applies for medical assistance, or 36 months before or any time 
329.18  after a medical assistance recipient becomes institutionalized, 
329.19  for less than fair market value may be considered.  Any such 
329.20  transfer is presumed to have been made for the purpose of 
329.21  establishing or maintaining medical assistance eligibility and 
329.22  the person is ineligible for long-term care services for the 
329.23  period of time determined under subdivision 2, unless the person 
329.24  furnishes convincing evidence to establish that the transaction 
329.25  was exclusively for another purpose, or unless the transfer is 
329.26  permitted under subdivision 3 or 4.  Notwithstanding the 
329.27  provisions of this paragraph, in the case of payments from a 
329.28  trust or portions of a trust that are considered transfers of 
329.29  assets under federal law, any transfers made within 60 months 
329.30  before or any time after an institutionalized person applies for 
329.31  medical assistance and within 60 months before or any time after 
329.32  a medical assistance recipient becomes institutionalized, may be 
329.33  considered. 
329.34     (c) This section applies to transfers, for less than fair 
329.35  market value, of income or assets, including assets that are 
329.36  considered income in the month received, such as inheritances, 
330.1   court settlements, and retroactive benefit payments or income to 
330.2   which the person or the person's spouse is entitled but does not 
330.3   receive due to action by the person, the person's spouse, or any 
330.4   person, court, or administrative body with legal authority to 
330.5   act in place of, on behalf of, at the direction of, or upon the 
330.6   request of the person or the person's spouse.  
330.7      (d) This section applies to payments for care or personal 
330.8   services provided by a relative, unless the compensation was 
330.9   stipulated in a notarized, written agreement which was in 
330.10  existence when the service was performed, the care or services 
330.11  directly benefited the person, and the payments made represented 
330.12  reasonable compensation for the care or services provided.  A 
330.13  notarized written agreement is not required if payment for the 
330.14  services was made within 60 days after the service was provided. 
330.15     (e) This section applies to the portion of any asset or 
330.16  interest that a person, a person's spouse, or any person, court, 
330.17  or administrative body with legal authority to act in place of, 
330.18  on behalf of, at the direction of, or upon the request of the 
330.19  person or the person's spouse, transfers to any annuity that 
330.20  exceeds the value of the benefit likely to be returned to the 
330.21  person or spouse while alive, based on estimated life expectancy 
330.22  using the life expectancy tables employed by the supplemental 
330.23  security income program to determine the value of an agreement 
330.24  for services for life.  The commissioner may adopt rules 
330.25  reducing life expectancies based on the need for long-term 
330.26  care.  This section applies to an annuity described in this 
330.27  paragraph purchased on or after March 1, 2002, that: 
330.28     (1) is not purchased from an insurance company or financial 
330.29  institution that is subject to licensing or regulation by the 
330.30  Minnesota department of commerce or a similar regulatory agency 
330.31  of another state; 
330.32     (2) does not pay out principal and interest in equal 
330.33  monthly installments; or 
330.34     (3) does not begin payment at the earliest possible date 
330.35  after annuitization.  
330.36     (f) For purposes of this section, long-term care services 
331.1   include services in a nursing facility, services that are 
331.2   eligible for payment according to section 256B.0625, subdivision 
331.3   2, because they are provided in a swing bed, intermediate care 
331.4   facility for persons with mental retardation, and home and 
331.5   community-based services provided pursuant to sections 
331.6   256B.0915, 256B.092, and 256B.49.  For purposes of this 
331.7   subdivision and subdivisions 2, 3, and 4, "institutionalized 
331.8   person" includes a person who is an inpatient in a nursing 
331.9   facility or in a swing bed, or intermediate care facility for 
331.10  persons with mental retardation or who is receiving home and 
331.11  community-based services under sections 256B.0915, 256B.092, and 
331.12  256B.49. 
331.13     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003.  
331.14     Sec. 2.  Minnesota Statutes 2002, section 256B.0595, is 
331.15  amended by adding a subdivision to read: 
331.16     Subd. 1b.  [PROHIBITED TRANSFERS.] (a) Notwithstanding any 
331.17  contrary provisions of this section, this subdivision applies to 
331.18  transfers involving recipients of medical assistance that are 
331.19  made on or after July 1, 2003, and to all transfers involving 
331.20  persons who apply for medical assistance on or after July 1, 
331.21  2003, if the transfer occurred within 72 months before the 
331.22  person applies for medical assistance, except that this 
331.23  subdivision does not apply to transfers made prior to July 1, 
331.24  2003.  A person, a person's spouse, or any person, court, or 
331.25  administrative body with legal authority to act in place of, on 
331.26  behalf of, at the direction of, or upon the request of the 
331.27  person or the person's spouse, may not give away, sell, dispose 
331.28  of, or reduce ownership or control of any income, asset, or 
331.29  interest therein for less than fair market value for the purpose 
331.30  of establishing or maintaining medical assistance eligibility.  
331.31  This applies to all transfers, including those made by a 
331.32  community spouse after the month in which the institutionalized 
331.33  spouse is determined eligible for medical assistance.  For 
331.34  purposes of determining eligibility for medical assistance 
331.35  services, any transfer of such income or assets for less than 
331.36  fair market value within 72 months before or any time after a 
332.1   person applies for medical assistance may be considered.  Any 
332.2   such transfer is presumed to have been made for the purpose of 
332.3   establishing or maintaining medical assistance eligibility, and 
332.4   the person is ineligible for medical assistance services for the 
332.5   period of time determined under subdivision 2b, unless the 
332.6   person furnishes convincing evidence to establish that the 
332.7   transaction was exclusively for another purpose or unless the 
332.8   transfer is permitted under subdivision 3b or 4b. 
332.9      (b) This section applies to transfers to trusts.  The 
332.10  commissioner shall determine valid trust purposes under this 
332.11  section.  Assets placed into a trust that is not for a valid 
332.12  purpose shall always be considered available for the purposes of 
332.13  medical assistance eligibility, regardless of when the trust is 
332.14  established. 
332.15     (c) This section applies to transfers of income or assets 
332.16  for less than fair market value, including assets that are 
332.17  considered income in the month received, such as inheritances, 
332.18  court settlements, and retroactive benefit payments or income to 
332.19  which the person or the person's spouse is entitled but does not 
332.20  receive due to action by the person, the person's spouse, or any 
332.21  person, court, or administrative body with legal authority to 
332.22  act in place of, on behalf of, at the direction of, or upon the 
332.23  request of the person or the person's spouse. 
332.24     (d) This section applies to payments for care or personal 
332.25  services provided by a relative, unless the compensation was 
332.26  stipulated in a notarized written agreement that was in 
332.27  existence when the service was performed, the care or services 
332.28  directly benefited the person, and the payments made represented 
332.29  reasonable compensation for the care or services provided.  A 
332.30  notarized written agreement is not required if payment for the 
332.31  services was made within 60 days after the service was provided. 
332.32     (e) This section applies to the portion of any income, 
332.33  asset, or interest therein that a person, a person's spouse, or 
332.34  any person, court, or administrative body with legal authority 
332.35  to act in place of, on behalf of, at the direction of, or upon 
332.36  the request of the person or the person's spouse, transfers to 
333.1   any annuity that exceeds the value of the benefit likely to be 
333.2   returned to the person or the person's spouse while alive, based 
333.3   on estimated life expectancy, using the life expectancy tables 
333.4   employed by the supplemental security income program, or based 
333.5   on a shorter life expectancy if the annuitant had a medical 
333.6   condition that would shorten his or her life expectancy and that 
333.7   was diagnosed before funds were placed into the annuity.  The 
333.8   agency may request and receive a physician's statement to 
333.9   determine if the annuitant had a diagnosed medical condition 
333.10  that would shorten his or her life expectancy.  If so, the 
333.11  agency shall determine the expected value of the benefits based 
333.12  upon the physician's statement instead of using a life 
333.13  expectancy table.  This section applies to an annuity described 
333.14  in this paragraph purchased on or after March 1, 2002, that: 
333.15     (1) is not purchased from an insurance company or financial 
333.16  institution that is subject to licensing or regulation by the 
333.17  Minnesota department of commerce or a similar regulatory agency 
333.18  of another state; 
333.19     (2) does not pay out principal and interest in equal 
333.20  monthly installments; or 
333.21     (3) does not begin payment at the earliest possible date 
333.22  after annuitization. 
333.23     (f) Transfers under this section shall affect 
333.24  determinations of eligibility for all medical assistance 
333.25  services or long-term care services, whichever receives federal 
333.26  approval. 
333.27     <b>[EFFECTIVE DATE.]</b> (a) This section is effective July 1, 
333.28  2003, to the extent permitted by federal law.  If any provision 
333.29  of this section is prohibited by federal law, the provision 
333.30  shall become effective when federal law is changed to permit its 
333.31  application or a waiver is received.  The commissioner of human 
333.32  services shall notify the revisor of statutes when federal law 
333.33  is enacted or a waiver or other federal approval is received and 
333.34  publish a notice in the State Register.  The commissioner must 
333.35  include the notice in the first State Register published after 
333.36  the effective date of the federal changes. 
334.1      (b) If, by July 1, 2003, any provision of this section is 
334.2   not effective because of prohibitions in federal law, the 
334.3   commissioner of human services shall apply to the federal 
334.4   government by August 1, 2003, for a waiver of those prohibitions 
334.5   or other federal authority, and that provision shall become 
334.6   effective upon receipt of a federal waiver or other federal 
334.7   approval, notification to the revisor of statutes, and 
334.8   publication of a notice in the State Register to that effect.  
334.9   In applying for federal approval to extend the lookback period, 
334.10  the commissioner shall seek the longest lookback period the 
334.11  federal government will approve, not to exceed 72 months. 
334.12     Sec. 3.  Minnesota Statutes 2002, section 256B.0595, 
334.13  subdivision 2, is amended to read: 
334.14     Subd. 2.  [PERIOD OF INELIGIBILITY.] (a) For any 
334.15  uncompensated transfer occurring on or before August 10, 1993, 
334.16  the number of months of ineligibility for long-term care 
334.17  services shall be the lesser of 30 months, or the uncompensated 
334.18  transfer amount divided by the average medical assistance rate 
334.19  for nursing facility services in the state in effect on the date 
334.20  of application.  The amount used to calculate the average 
334.21  medical assistance payment rate shall be adjusted each July 1 to 
334.22  reflect payment rates for the previous calendar year.  The 
334.23  period of ineligibility begins with the month in which the 
334.24  assets were transferred.  If the transfer was not reported to 
334.25  the local agency at the time of application, and the applicant 
334.26  received long-term care services during what would have been the 
334.27  period of ineligibility if the transfer had been reported, a 
334.28  cause of action exists against the transferee for the cost of 
334.29  long-term care services provided during the period of 
334.30  ineligibility, or for the uncompensated amount of the transfer, 
334.31  whichever is less.  The action may be brought by the state or 
334.32  the local agency responsible for providing medical assistance 
334.33  under chapter 256G.  The uncompensated transfer amount is the 
334.34  fair market value of the asset at the time it was given away, 
334.35  sold, or disposed of, less the amount of compensation received.  
334.36     (b) For uncompensated transfers made after August 10, 1993, 
335.1   the number of months of ineligibility for long-term care 
335.2   services shall be the total uncompensated value of the resources 
335.3   transferred divided by the average medical assistance rate for 
335.4   nursing facility services in the state in effect on the date of 
335.5   application.  The amount used to calculate the average medical 
335.6   assistance payment rate shall be adjusted each July 1 to reflect 
335.7   payment rates for the previous calendar year.  The period of 
335.8   ineligibility begins with the first day of the month after the 
335.9   month in which the assets were transferred except that if one or 
335.10  more uncompensated transfers are made during a period of 
335.11  ineligibility, the total assets transferred during the 
335.12  ineligibility period shall be combined and a penalty period 
335.13  calculated to begin in on the first day of the month after the 
335.14  month in which the first uncompensated transfer was made.  If 
335.15  the transfer was not reported to the local agency at the time of 
335.16  application, and the applicant received medical assistance 
335.17  services during what would have been the period of ineligibility 
335.18  if the transfer had been reported, a cause of action exists 
335.19  against the transferee for the cost of medical assistance 
335.20  services provided during the period of ineligibility, or for the 
335.21  uncompensated amount of the transfer, whichever is less.  The 
335.22  action may be brought by the state or the local agency 
335.23  responsible for providing medical assistance under chapter 
335.24  256G.  The uncompensated transfer amount is the fair market 
335.25  value of the asset at the time it was given away, sold, or 
335.26  disposed of, less the amount of compensation received.  
335.27  Effective for transfers made on or after March 1, 1996, 
335.28  involving persons who apply for medical assistance on or after 
335.29  April 13, 1996, no cause of action exists for a transfer unless: 
335.30     (1) the transferee knew or should have known that the 
335.31  transfer was being made by a person who was a resident of a 
335.32  long-term care facility or was receiving that level of care in 
335.33  the community at the time of the transfer; 
335.34     (2) the transferee knew or should have known that the 
335.35  transfer was being made to assist the person to qualify for or 
335.36  retain medical assistance eligibility; or 
336.1      (3) the transferee actively solicited the transfer with 
336.2   intent to assist the person to qualify for or retain eligibility 
336.3   for medical assistance.  
336.4      (c) If a calculation of a penalty period results in a 
336.5   partial month, payments for long-term care services shall be 
336.6   reduced in an amount equal to the fraction, except that in 
336.7   calculating the value of uncompensated transfers, if the total 
336.8   value of all uncompensated transfers made in a month not 
336.9   included in an existing penalty period does not exceed $200, 
336.10  then such transfers shall be disregarded for each month prior to 
336.11  the month of application for or during receipt of medical 
336.12  assistance. 
336.13     <b>[EFFECTIVE DATE.]</b> Paragraph (b) of this section is 
336.14  effective July 1, 2003. 
336.15     Sec. 4.  Minnesota Statutes 2002, section 256B.0595, is 
336.16  amended by adding a subdivision to read: 
336.17     Subd. 2b.  [PERIOD OF INELIGIBILITY.] (a) Notwithstanding 
336.18  any contrary provisions of this section, this subdivision 
336.19  applies to transfers, including transfers to trusts, involving 
336.20  recipients of medical assistance that are made on or after July 
336.21  1, 2003, and to all transfers involving persons who apply for 
336.22  medical assistance on or after July 1, 2003, regardless of when 
336.23  the transfer occurred, except that this subdivision does not 
336.24  apply to transfers made prior to July 1, 2003.  For any 
336.25  uncompensated transfer occurring within 72 months prior to the 
336.26  date of application, at any time after application, or while 
336.27  eligible, the number of months of cumulative ineligibility for 
336.28  medical assistance services shall be the total uncompensated 
336.29  value of the assets and income transferred divided by the 
336.30  statewide average per-person nursing facility payment made by 
336.31  the state in effect at the time a penalty for a transfer is 
336.32  determined.  The amount used to calculate the average per-person 
336.33  nursing facility payment shall be adjusted each July 1 to 
336.34  reflect average payments for the previous calendar year.  For 
336.35  applicants, the period of ineligibility begins with the month in 
336.36  which the person applied for medical assistance and satisfied 
337.1   all other requirements for eligibility, or the first month the 
337.2   local agency becomes aware of the transfer and can give proper 
337.3   notice, if later.  For recipients, the period of ineligibility 
337.4   begins in the first month after the month the agency becomes 
337.5   aware of the transfer and can give proper notice, except that 
337.6   penalty periods for transfers made during a period of 
337.7   ineligibility as determined under this section shall begin in 
337.8   the month following the existing period of ineligibility.  If 
337.9   the transfer was not reported to the local agency, and the 
337.10  applicant received medical assistance services during what would 
337.11  have been the period of ineligibility if the transfer had been 
337.12  reported, a cause of action exists against the transferee for 
337.13  the cost of medical assistance services provided during the 
337.14  period of ineligibility or for the uncompensated amount of the 
337.15  transfer that was not recovered from the transferor through the 
337.16  implementation of a penalty period under this subdivision, 
337.17  whichever is less.  Recovery shall include the costs incurred 
337.18  due to the action.  The action may be brought by the state or 
337.19  the local agency responsible for providing medical assistance 
337.20  under chapter 256B.  The total uncompensated value is the fair 
337.21  market value of the income or asset at the time it was given 
337.22  away, sold, or disposed of, less the amount of compensation 
337.23  received.  No cause of action exists for a transfer unless: 
337.24     (1) the transferee knew or should have known that the 
337.25  transfer was being made by a person who was a resident of a 
337.26  long-term care facility or was receiving that level of care in 
337.27  the community at the time of the transfer; 
337.28     (2) the transferee knew or should have known that the 
337.29  transfer was being made to assist the person to qualify for or 
337.30  retain medical assistance eligibility; or 
337.31     (3) the transferee actively solicited the transfer with 
337.32  intent to assist the person to qualify for or retain eligibility 
337.33  for medical assistance. 
337.34     (b) If a calculation of a penalty period results in a 
337.35  partial month, payments for medical assistance services shall be 
337.36  reduced in an amount equal to the fraction, except that in 
338.1   calculating the value of uncompensated transfers, if the total 
338.2   value of all uncompensated transfers made in a month not 
338.3   included in an existing penalty period does not exceed $200, 
338.4   then such transfers shall be disregarded for each month prior to 
338.5   the month of application for or during receipt of medical 
338.6   assistance. 
338.7      (c) Ineligibility under this section shall apply to medical 
338.8   assistance services or long-term care services, whichever 
338.9   receives federal approval. 
338.10     <b>[EFFECTIVE DATE.]</b> (a) This section is effective July 1, 
338.11  2003, to the extent permitted by federal law.  If any provision 
338.12  of this section is prohibited by federal law, the provision 
338.13  shall become effective when federal law is changed to permit its 
338.14  application or a waiver is received.  The commissioner of human 
338.15  services shall notify the revisor of statutes when federal law 
338.16  is enacted or a waiver or other federal approval is received and 
338.17  publish a notice in the State Register.  The commissioner must 
338.18  include the notice in the first State Register published after 
338.19  the effective date of the federal changes. 
338.20     (b) If, by July 1, 2003, any provision of this section is 
338.21  not effective because of prohibitions in federal law, the 
338.22  commissioner of human services shall apply to the federal 
338.23  government by August 1, 2003, for a waiver of those prohibitions 
338.24  or other federal authority, and that provision shall become 
338.25  effective upon receipt of a federal waiver or other federal 
338.26  approval, notification to the revisor of statutes, and 
338.27  publication of a notice in the State Register to that effect.  
338.28  In applying for federal approval to extend the lookback period, 
338.29  the commissioner shall seek the longest lookback period the 
338.30  federal government will approve, not to exceed 72 months. 
338.31     Sec. 5.  Minnesota Statutes 2002, section 256B.0595, is 
338.32  amended by adding a subdivision to read: 
338.33     Subd. 3b.  [HOMESTEAD EXCEPTION TO TRANSFER 
338.34  PROHIBITION.] (a) This subdivision applies to transfers 
338.35  involving recipients of medical assistance that are made on or 
338.36  after July 1, 2003, and to all transfers involving persons who 
339.1   apply for medical assistance on or after July 1, 2003, 
339.2   regardless of when the transfer occurred, except that this 
339.3   subdivision does not apply to transfers made prior to July 1, 
339.4   2003.  A person is not ineligible for medical assistance 
339.5   services due to a transfer of assets for less than fair market 
339.6   value as described in subdivision 1b, if the asset transferred 
339.7   was a homestead, and: 
339.8      (1) a satisfactory showing is made that the individual 
339.9   intended to dispose of the homestead at fair market value or for 
339.10  other valuable consideration; or 
339.11     (2) the local agency grants a waiver of a penalty resulting 
339.12  from a transfer for less than fair market value because denial 
339.13  of eligibility would cause undue hardship for the individual and 
339.14  there exists an imminent threat to the individual's health and 
339.15  well-being.  Whenever an applicant or recipient is denied 
339.16  eligibility because of a transfer for less than fair market 
339.17  value, the local agency shall notify the applicant or recipient 
339.18  that the applicant or recipient may request a waiver of the 
339.19  penalty if the denial of eligibility will cause undue hardship.  
339.20  In evaluating a waiver, the local agency shall take into account 
339.21  whether the individual was the victim of financial exploitation, 
339.22  whether the individual has made reasonable efforts to recover 
339.23  the transferred property or resource, and other factors relevant 
339.24  to a determination of hardship.  If the local agency does not 
339.25  approve a hardship waiver, the local agency shall issue a 
339.26  written notice to the individual stating the reasons for the 
339.27  denial and the process for appealing the local agency's decision.
339.28     (b) When a waiver is granted under paragraph (a), clause 
339.29  (2), a cause of action exists against the person to whom the 
339.30  homestead was transferred for that portion of medical assistance 
339.31  services granted within 72 months of the date the transferor 
339.32  applied for medical assistance and satisfied all other 
339.33  requirements for eligibility or the amount of the uncompensated 
339.34  transfer, whichever is less, together with the costs incurred 
339.35  due to the action.  The action shall be brought by the state 
339.36  unless the state delegates this responsibility to the local 
340.1   agency responsible for providing medical assistance under 
340.2   chapter 256B. 
340.3      <b>[EFFECTIVE DATE.]</b> (a) This section is effective July 1, 
340.4   2003, to the extent permitted by federal law.  If any provision 
340.5   of this section is prohibited by federal law, the provision 
340.6   shall become effective when federal law is changed to permit its 
340.7   application or a waiver is received.  The commissioner of human 
340.8   services shall notify the revisor of statutes when federal law 
340.9   is enacted or a waiver or other federal approval is received and 
340.10  publish a notice in the State Register.  The commissioner must 
340.11  include the notice in the first State Register published after 
340.12  the effective date of the federal changes. 
340.13     (b) If, by July 1, 2003, any provision of this section is 
340.14  not effective because of prohibitions in federal law, the 
340.15  commissioner of human services shall apply to the federal 
340.16  government by August 1, 2003, for a waiver of those prohibitions 
340.17  or other federal authority, and that provision shall become 
340.18  effective upon receipt of a federal waiver or other federal 
340.19  approval, notification to the revisor of statutes, and 
340.20  publication of a notice in the State Register to that effect.  
340.21  In applying for federal approval to extend the lookback period, 
340.22  the commissioner shall seek the longest lookback period the 
340.23  federal government will approve, not to exceed 72 months. 
340.24     Sec. 6.  Minnesota Statutes 2002, section 256B.0595, is 
340.25  amended by adding a subdivision to read: 
340.26     Subd. 4b.  [OTHER EXCEPTIONS TO TRANSFER PROHIBITION.] This 
340.27  subdivision applies to transfers involving recipients of medical 
340.28  assistance that are made on or after July 1, 2003, and to all 
340.29  transfers involving persons who apply for medical assistance on 
340.30  or after July 1, 2003, regardless of when the transfer occurred, 
340.31  except that this subdivision does not apply to transfers made 
340.32  prior to July 1, 2003.  A person or a person's spouse who made a 
340.33  transfer prohibited by subdivision 1b is not ineligible for 
340.34  medical assistance services if one of the following conditions 
340.35  applies: 
340.36     (1) the assets or income were transferred to the 
341.1   individual's spouse or to another for the sole benefit of the 
341.2   spouse, except that after eligibility is established and the 
341.3   assets have been divided between the spouses as part of the 
341.4   asset allowance under section 256B.059, no further transfers 
341.5   between spouses may be made; 
341.6      (2) the institutionalized spouse, prior to being 
341.7   institutionalized, transferred assets or income to a spouse, 
341.8   provided that the spouse to whom the assets or income were 
341.9   transferred does not then transfer those assets or income to 
341.10  another person for less than fair market value.  At the time 
341.11  when one spouse is institutionalized, assets must be allocated 
341.12  between the spouses as provided under section 256B.059; 
341.13     (3) the assets or income were transferred to a trust for 
341.14  the sole benefit of the individual's child who is blind or 
341.15  permanently and totally disabled as determined in the 
341.16  supplemental security income program and the trust reverts to 
341.17  the state upon the disabled child's death to the extent the 
341.18  medical assistance has paid for services for the grantor or 
341.19  beneficiary of the trust.  This clause applies to a trust 
341.20  established after the commissioner publishes a notice in the 
341.21  State Register that the commissioner has been authorized to 
341.22  implement this clause due to a change in federal law or the 
341.23  approval of a federal waiver; 
341.24     (4) a satisfactory showing is made that the individual 
341.25  intended to dispose of the assets or income either at fair 
341.26  market value or for other valuable consideration; or 
341.27     (5) the local agency determines that denial of eligibility 
341.28  for medical assistance services would cause undue hardship and 
341.29  grants a waiver of a penalty resulting from a transfer for less 
341.30  than fair market value because there exists an imminent threat 
341.31  to the individual's health and well-being.  Whenever an 
341.32  applicant or recipient is denied eligibility because of a 
341.33  transfer for less than fair market value, the local agency shall 
341.34  notify the applicant or recipient that the applicant or 
341.35  recipient may request a waiver of the penalty if the denial of 
341.36  eligibility will cause undue hardship.  In evaluating a waiver, 
342.1   the local agency shall take into account whether the individual 
342.2   was the victim of financial exploitation, whether the individual 
342.3   has made reasonable efforts to recover the transferred property 
342.4   or resource, and other factors relevant to a determination of 
342.5   hardship.  If the local agency does not approve a hardship 
342.6   waiver, the local agency shall issue a written notice to the 
342.7   individual stating the reasons for the denial and the process 
342.8   for appealing the local agency's decision.  When a waiver is 
342.9   granted, a cause of action exists against the person to whom the 
342.10  assets were transferred for that portion of medical assistance 
342.11  services granted within 72 months of the date the transferor 
342.12  applied for medical assistance and satisfied all other 
342.13  requirements for eligibility, or the amount of the uncompensated 
342.14  transfer, whichever is less, together with the costs incurred 
342.15  due to the action.  The action shall be brought by the state 
342.16  unless the state delegates this responsibility to the local 
342.17  agency responsible for providing medical assistance under this 
342.18  chapter. 
342.19     <b>[EFFECTIVE DATE.]</b> (a) This section is effective July 1, 
342.20  2003, to the extent permitted by federal law.  If any provision 
342.21  of this section is prohibited by federal law, the provision 
342.22  shall become effective when federal law is changed to permit its 
342.23  application or a waiver is received.  The commissioner of human 
342.24  services shall notify the revisor of statutes when federal law 
342.25  is enacted or a waiver or other federal approval is received and 
342.26  publish a notice in the State Register.  The commissioner must 
342.27  include the notice in the first State Register published after 
342.28  the effective date of the federal changes. 
342.29     (b) If, by July 1, 2003, any provision of this section is 
342.30  not effective because of prohibitions in federal law, the 
342.31  commissioner of human services shall apply to the federal 
342.32  government by August 1, 2003, for a waiver of those prohibitions 
342.33  or other federal authority, and that provision shall become 
342.34  effective upon receipt of a federal waiver or other federal 
342.35  approval, notification to the revisor of statutes, and 
342.36  publication of a notice in the State Register to that effect.  
343.1   In applying for federal approval to extend the lookback period, 
343.2   the commissioner shall seek the longest lookback period the 
343.3   federal government will approve, not to exceed 72 months. 
343.4      Sec. 7.  Minnesota Statutes 2002, section 256B.15, 
343.5   subdivision 1, is amended to read: 
343.6      Subdivision 1.  [POLICY, APPLICABILITY, PURPOSE, AND 
343.7   CONSTRUCTION; DEFINITION.] (a) It is the policy of this state 
343.8   that individuals or couples, either or both of whom participate 
343.9   in the medical assistance program, use their own assets to pay 
343.10  their share of the total cost of their care during or after 
343.11  their enrollment in the program according to applicable federal 
343.12  law and the laws of this state.  The following provisions apply: 
343.13     (1) subdivisions 1c to 1k shall not apply to claims arising 
343.14  under this section which are presented under section 525.313; 
343.15     (2) the provisions of subdivisions 1c to 1k expanding the 
343.16  interests included in an estate for purposes of recovery under 
343.17  this section give effect to the provisions of United States 
343.18  Code, title 42, section 1396p, governing recoveries, but do not 
343.19  give rise to any express or implied liens in favor of any other 
343.20  parties not named in these provisions; 
343.21     (3) the continuation of a recipient's life estate or joint 
343.22  tenancy interest in real property after the recipient's death 
343.23  for the purpose of recovering medical assistance under this 
343.24  section modifies common law principles holding that these 
343.25  interests terminate on the death of the holder; 
343.26     (4) all laws, rules, and regulations governing or involved 
343.27  with a recovery of medical assistance shall be liberally 
343.28  construed to accomplish their intended purposes; and 
343.29     (5) a deceased recipient's life estate and joint tenancy 
343.30  interests continued under this section shall be owned by the 
343.31  remaindermen or surviving joint tenants as their interests may 
343.32  appear on the date of the recipient's death.  They shall not be 
343.33  merged into the remainder interest or the interests of the 
343.34  surviving joint tenants by reason of ownership.  They shall be 
343.35  subject to the provisions of this section.  Any conveyance, 
343.36  transfer, sale, assignment, or encumbrance by a remainderman, a 
344.1   surviving joint tenant, or their heirs, successors, and assigns 
344.2   shall be deemed to include all of their interest in the deceased 
344.3   recipient's life estate or joint tenancy interest continued 
344.4   under this section. 
344.5      (b) For purposes of this section, "medical assistance" 
344.6   includes the medical assistance program under this chapter and, 
344.7   the general assistance medical care program under chapter 256D, 
344.8   but does not include and the alternative care program for 
344.9   nonmedical assistance recipients under section 256B.0913, 
344.10  subdivision 4. 
344.11     <b>[EFFECTIVE DATE.]</b> Paragraph (a) of this section is 
344.12  effective August 1, 2003, and applies to estates of decedents 
344.13  who die on or after that date.  The amendments to paragraph (b) 
344.14  are effective July 1, 2003, and apply to estates of decedents 
344.15  who die on or after that date. 
344.16     Sec. 8.  Minnesota Statutes 2002, section 256B.15, 
344.17  subdivision 1a, is amended to read: 
344.18     Subd. 1a.  [ESTATES SUBJECT TO CLAIMS.] If a person 
344.19  receives any medical assistance hereunder, on the person's 
344.20  death, if single, or on the death of the survivor of a married 
344.21  couple, either or both of whom received medical assistance, or 
344.22  as otherwise provided for in this section, the total amount paid 
344.23  for medical assistance rendered for the person and spouse shall 
344.24  be filed as a claim against the estate of the person or the 
344.25  estate of the surviving spouse in the court having jurisdiction 
344.26  to probate the estate or to issue a decree of descent according 
344.27  to sections 525.31 to 525.313.  
344.28     A claim shall be filed if medical assistance was rendered 
344.29  for either or both persons under one of the following 
344.30  circumstances: 
344.31     (a) the person was over 55 years of age, and received 
344.32  services under this chapter, excluding alternative care; 
344.33     (b) the person resided in a medical institution for six 
344.34  months or longer, received services under this chapter excluding 
344.35  alternative care, and, at the time of institutionalization or 
344.36  application for medical assistance, whichever is later, the 
345.1   person could not have reasonably been expected to be discharged 
345.2   and returned home, as certified in writing by the person's 
345.3   treating physician.  For purposes of this section only, a 
345.4   "medical institution" means a skilled nursing facility, 
345.5   intermediate care facility, intermediate care facility for 
345.6   persons with mental retardation, nursing facility, or inpatient 
345.7   hospital; or 
345.8      (c) the person received general assistance medical care 
345.9   services under chapter 256D.  
345.10     The claim shall be considered an expense of the last 
345.11  illness of the decedent for the purpose of section 524.3-805.  
345.12  Any statute of limitations that purports to limit any county 
345.13  agency or the state agency, or both, to recover for medical 
345.14  assistance granted hereunder shall not apply to any claim made 
345.15  hereunder for reimbursement for any medical assistance granted 
345.16  hereunder.  Notice of the claim shall be given to all heirs and 
345.17  devisees of the decedent whose identity can be ascertained with 
345.18  reasonable diligence.  The notice must include procedures and 
345.19  instructions for making an application for a hardship waiver 
345.20  under subdivision 5; time frames for submitting an application 
345.21  and determination; and information regarding appeal rights and 
345.22  procedures.  Counties are entitled to one-half of the nonfederal 
345.23  share of medical assistance collections from estates that are 
345.24  directly attributable to county effort.  Counties are entitled 
345.25  to ten percent of the collections for alternative care directly 
345.26  attributable to county effort. 
345.27     <b>[EFFECTIVE DATE.]</b> The amendments in this section relating 
345.28  to the alternative care program are effective July 1, 2003, and 
345.29  apply to the estates of decedents who die on or after that 
345.30  date.  The remaining amendments in this section are effective 
345.31  August 1, 2003, and apply to the estates of decedents who die on 
345.32  and after that date. 
345.33     Sec. 9.  Minnesota Statutes 2002, section 256B.15, is 
345.34  amended by adding a subdivision to read: 
345.35     Subd. 1c.  [NOTICE OF POTENTIAL CLAIM.] (a) A state agency 
345.36  with a claim or potential claim under this section may file a 
346.1   notice of potential claim under this subdivision anytime before 
346.2   or within one year after a medical assistance recipient dies.  
346.3   The claimant shall be the state agency.  A notice filed prior to 
346.4   the recipient's death shall not take effect and shall not be 
346.5   effective as notice until the recipient dies.  A notice filed 
346.6   after a recipient dies shall be effective from the time of 
346.7   filing.  
346.8      (b) The notice of claim shall be filed or recorded in the 
346.9   real estate records in the office of the county recorder or 
346.10  registrar of titles for each county in which any part of the 
346.11  property is located.  The recorder shall accept the notice for 
346.12  recording or filing.  The registrar of titles shall accept the 
346.13  notice for filing if the recipient has a recorded interest in 
346.14  the property.  The registrar of titles shall not carry forward 
346.15  to a new certificate of title any notice filed more than one 
346.16  year from the date of the recipient's death. 
346.17     (c) The notice must be dated, state the name of the 
346.18  claimant, the medical assistance recipient's name and social 
346.19  security number if filed before their death and their date of 
346.20  death if filed after they die, the name and date of death of any 
346.21  predeceased spouse of the medical assistance recipient for whom 
346.22  a claim may exist, a statement that the claimant may have a 
346.23  claim arising under this section, generally identify the 
346.24  recipient's interest in the property, contain a legal 
346.25  description for the property and whether it is abstract or 
346.26  registered property, a statement of when the notice becomes 
346.27  effective and the effect of the notice, be signed by an 
346.28  authorized representative of the state agency, and may include 
346.29  such other contents as the state agency may deem appropriate. 
346.30     <b>[EFFECTIVE DATE.]</b> This section is effective August 1, 2003, 
346.31  and applies to the estates of decedents who die on or after that 
346.32  date. 
346.33     Sec. 10.  Minnesota Statutes 2002, section 256B.15, is 
346.34  amended by adding a subdivision to read: 
346.35     Subd. 1d.  [EFFECT OF NOTICE.] From the time it takes 
346.36  effect, the notice shall be notice to remaindermen, joint 
347.1   tenants, or to anyone else owning or acquiring an interest in or 
347.2   encumbrance against the property described in the notice that 
347.3   the medical assistance recipient's life estate, joint tenancy, 
347.4   or other interests in the real estate described in the notice: 
347.5      (1) shall, in the case of life estate and joint tenancy 
347.6   interests, continue to exist for purposes of this section, and 
347.7   be subject to liens and claims as provided in this section; 
347.8      (2) shall be subject to a lien in favor of the claimant 
347.9   effective upon the death of the recipient and dealt with as 
347.10  provided in this section; 
347.11     (3) may be included in the recipient's estate, as defined 
347.12  in this section; and 
347.13     (4) may be subject to administration and all other 
347.14  provisions of chapter 524 and may be sold, assigned, 
347.15  transferred, or encumbered free and clear of their interest or 
347.16  encumbrance to satisfy claims under this section. 
347.17     <b>[EFFECTIVE DATE.]</b> This section is effective August 1, 2003, 
347.18  and applies to the estates of decedents who die on or after that 
347.19  date. 
347.20     Sec. 11.  Minnesota Statutes 2002, section 256B.15, is 
347.21  amended by adding a subdivision to read: 
347.22     Subd. 1e.  [FULL OR PARTIAL RELEASE OF NOTICE.] (a) The 
347.23  claimant may fully or partially release the notice and the lien 
347.24  arising out of the notice of record in the real estate records 
347.25  where the notice is filed or recorded at any time.  The claimant 
347.26  may give a full or partial release to extinguish any life 
347.27  estates or joint tenancy interests which are or may be continued 
347.28  under this section or whose existence or nonexistence may create 
347.29  a cloud on the title to real property at any time whether or not 
347.30  a notice has been filed.  The recorder or registrar of titles 
347.31  shall accept the release for recording or filing.  If the 
347.32  release is a partial release, it must include a legal 
347.33  description of the property being released. 
347.34     (b) At any time, the claimant may, at the claimant's 
347.35  discretion, wholly or partially release, subordinate, modify, or 
347.36  amend the recorded notice and the lien arising out of the notice.
348.1      <b>[EFFECTIVE DATE.]</b> This section is effective August 1, 2003, 
348.2   and applies to the estates of decedents who die on or after that 
348.3   date. 
348.4      Sec. 12.  Minnesota Statutes 2002, section 256B.15, is 
348.5   amended by adding a subdivision to read: 
348.6      Subd. 1f.  [AGENCY LIEN.] (a) The notice shall constitute a 
348.7   lien in favor of the department of human services against the 
348.8   recipient's interests in the real estate it describes for a 
348.9   period of 20 years from the date of filing or the date of the 
348.10  recipient's death, whichever is later.  Notwithstanding any law 
348.11  or rule to the contrary, a recipient's life estate and joint 
348.12  tenancy interests shall not end upon the recipient's death but 
348.13  shall continue according to subdivisions 1h, 1i, and 1j.  The 
348.14  amount of the lien shall be equal to the total amount of the 
348.15  claims that could be presented in the recipient's estate under 
348.16  this section. 
348.17     (b) If no estate has been opened for the deceased 
348.18  recipient, any holder of an interest in the property may apply 
348.19  to the lienholder for a statement of the amount of the lien or 
348.20  for a full or partial release of the lien.  The application 
348.21  shall include the applicant's name, current mailing address, 
348.22  current home and work telephone numbers, and a description of 
348.23  their interest in the property, a legal description of the 
348.24  recipient's interest in the property, and the deceased 
348.25  recipient's name, date of birth, and social security number.  
348.26  The lienholder shall send the applicant by certified mail, 
348.27  return receipt requested, a written statement showing the amount 
348.28  of the lien, whether the lienholder is willing to release the 
348.29  lien and under what conditions, and inform them of the right to 
348.30  a hearing under section 256.045.  The lienholder shall have the 
348.31  discretion to compromise and settle the lien upon any terms and 
348.32  conditions the lienholder deems appropriate. 
348.33     (c) Any holder of an interest in property subject to the 
348.34  lien has a right to request a hearing under section 256.045 to 
348.35  determine the validity, extent, or amount of the lien.  The 
348.36  request must be in writing, and must include the names, current 
349.1   addresses, and home and business telephone numbers for all other 
349.2   parties holding an interest in the property.  A request for a 
349.3   hearing by any holder of an interest in the property shall be 
349.4   deemed to be a request for a hearing by all parties owning 
349.5   interests in the property.  Notice of the hearing shall be given 
349.6   to the lienholder, the party filing the appeal, and all of the 
349.7   other holders of interests in the property at the addresses 
349.8   listed in the appeal by certified mail, return receipt 
349.9   requested, or by ordinary mail.  Any owner of an interest in the 
349.10  property to whom notice of the hearing is mailed shall be deemed 
349.11  to have waived any and all claims or defenses in respect to the 
349.12  lien unless they appear and assert any claims or defenses at the 
349.13  hearing. 
349.14     (d) If the claim the lien secures could be filed under 
349.15  subdivision 1h, the lienholder may collect, compromise, settle, 
349.16  or release the lien upon any terms and conditions it deems 
349.17  appropriate.  If the claim the lien secures could be filed under 
349.18  subdivision 1i or 1j, the lien may be adjusted or enforced to 
349.19  the same extent had it been filed under subdivisions 1i and 1j, 
349.20  and the provisions of subdivisions 1i, clause (f), and lj, 
349.21  clause (d), shall apply to voluntary payment, settlement, or 
349.22  satisfaction of the lien. 
349.23     (e) If no probate proceedings have been commenced for the 
349.24  recipient as of the date the lienholder executes a release of 
349.25  the lien on a recipient's life estate or joint tenancy interest, 
349.26  created for purposes of this section, the release shall 
349.27  terminate the life estate or joint tenancy interest created 
349.28  under this section as of the date it is recorded or filed to the 
349.29  extent of the release.  If the claimant executes a release for 
349.30  purposes of extinguishing a life estate or a joint tenancy 
349.31  interest created under this section to remove a cloud on title 
349.32  to real property, the release shall have the effect of 
349.33  extinguishing any life estate or joint tenancy interests in the 
349.34  property it describes which may have been continued by reason of 
349.35  this section retroactive to the date of death of the deceased 
349.36  life tenant or joint tenant except as provided for in section 
350.1   514.981, subdivision 6. 
350.2      (f) If the deceased recipient's estate is probated, a claim 
350.3   shall be filed under this section.  The amount of the lien shall 
350.4   be limited to the amount of the claim as finally allowed.  If 
350.5   the claim the lien secures is filed under subdivision 1h, the 
350.6   lien may be released in full after any allowance of the claim 
350.7   becomes final or according to any agreement to settle and 
350.8   satisfy the claim.  The release shall release the lien but shall 
350.9   not extinguish or terminate the interest being released.  If the 
350.10  claim the lien secures is filed under subdivision 1i or 1j, the 
350.11  lien shall be released after the lien under subdivision 1i or 1j 
350.12  is filed or recorded, or settled according to any agreement to 
350.13  settle and satisfy the claim.  The release shall not extinguish 
350.14  or terminate the interest being released.  If the claim is 
350.15  finally disallowed in full, the claimant shall release the 
350.16  claimant's lien at the claimant's expense. 
350.17     <b>[EFFECTIVE DATE.]</b> This section takes effect on August 1, 
350.18  2003, and applies to the estates of decedents who die on or 
350.19  after that date. 
350.20     Sec. 13.  Minnesota Statutes 2002, section 256B.15, is 
350.21  amended by adding a subdivision to read: 
350.22     Subd. 1g.  [ESTATE PROPERTY.] Notwithstanding any law or 
350.23  rule to the contrary, if a claim is presented under this 
350.24  section, interests or the proceeds of interests in real property 
350.25  a decedent owned as a life tenant or a joint tenant with a right 
350.26  of survivorship shall be part of the decedent's estate, subject 
350.27  to administration, and shall be dealt with as provided in this 
350.28  section. 
350.29     <b>[EFFECTIVE DATE.]</b> This section takes effect on August 1, 
350.30  2003, and applies to the estates of decedents who die on or 
350.31  after that date. 
350.32     Sec. 14.  Minnesota Statutes 2002, section 256B.15, is 
350.33  amended by adding a subdivision to read: 
350.34     Subd. 1h.  [ESTATES OF SPECIFIC PERSONS RECEIVING MEDICAL 
350.35  ASSISTANCE.] (a) For purposes of this section, paragraphs (b) to 
350.36  (k) apply if a person received medical assistance for which a 
351.1   claim may be filed under this section and died single, or the 
351.2   surviving spouse of the couple and was not survived by any of 
351.3   the persons described in subdivisions 3 and 4. 
351.4      (b) For purposes of this section, the person's estate 
351.5   consists of:  (1) their probate estate; (2) all of the person's 
351.6   interests or proceeds of those interests in real property the 
351.7   person owned as a life tenant or as a joint tenant with a right 
351.8   of survivorship at the time of the person's death; (3) all of 
351.9   the person's interests or proceeds of those interests in 
351.10  securities the person owned in beneficiary form as provided 
351.11  under sections 524.6-301 to 524.6-311 at the time of the 
351.12  person's death, to the extent they become part of the probate 
351.13  estate under section 524.6-307; and (4) all of the person's 
351.14  interests in joint accounts, multiple party accounts, and pay on 
351.15  death accounts, or the proceeds of those accounts, as provided 
351.16  under sections 524.6-201 to 524.6-214 at the time of the 
351.17  person's death to the extent they become part of the probate 
351.18  estate under section 524.6-207.  Notwithstanding any law or rule 
351.19  to the contrary, a state or county agency with a claim under 
351.20  this section shall be a creditor under section 524.6-307. 
351.21     (c) Notwithstanding any law or rule to the contrary, the 
351.22  person's life estate or joint tenancy interest in real property 
351.23  not subject to a medical assistance lien under sections 514.980 
351.24  to 514.985 on the date of the person's death shall not end upon 
351.25  the person's death and shall continue as provided in this 
351.26  subdivision.  The life estate in the person's estate shall be 
351.27  that portion of the interest in the real property subject to the 
351.28  life estate that is equal to the life estate percentage factor 
351.29  for the life estate as listed in the Life Estate Mortality Table 
351.30  of the health care program's manual for a person who was the age 
351.31  of the medical assistance recipient on the date of the person's 
351.32  death.  The joint tenancy interest in real property in the 
351.33  estate shall be equal to the fractional interest the person 
351.34  would have owned in the jointly held interest in the property 
351.35  had they and the other owners held title to the property as 
351.36  tenants in common on the date the person died. 
352.1      (d) The court upon its own motion, or upon motion by the 
352.2   personal representative or any interested party, may enter an 
352.3   order directing the remaindermen or surviving joint tenants and 
352.4   their spouses, if any, to sign all documents, take all actions, 
352.5   and otherwise fully cooperate with the personal representative 
352.6   and the court to liquidate the decedent's life estate or joint 
352.7   tenancy interests in the estate and deliver the cash or the 
352.8   proceeds of those interests to the personal representative and 
352.9   provide for any legal and equitable sanctions as the court deems 
352.10  appropriate to enforce and carry out the order, including an 
352.11  award of reasonable attorney fees. 
352.12     (e) The personal representative may make, execute, and 
352.13  deliver any conveyances or other documents necessary to convey 
352.14  the decedent's life estate or joint tenancy interest in the 
352.15  estate that are necessary to liquidate and reduce to cash the 
352.16  decedent's interest or for any other purposes. 
352.17     (f) Subject to administration, all costs, including 
352.18  reasonable attorney fees, directly and immediately related to 
352.19  liquidating the decedent's life estate or joint tenancy interest 
352.20  in the decedent's estate, shall be paid from the gross proceeds 
352.21  of the liquidation allocable to the decedent's interest and the 
352.22  net proceeds shall be turned over to the personal representative 
352.23  and applied to payment of the claim presented under this section.
352.24     (g) The personal representative shall bring a motion in the 
352.25  district court in which the estate is being probated to compel 
352.26  the remaindermen or surviving joint tenants to account for and 
352.27  deliver to the personal representative all or any part of the 
352.28  proceeds of any sale, mortgage, transfer, conveyance, or any 
352.29  disposition of real property allocable to the decedent's life 
352.30  estate or joint tenancy interest in the decedent's estate, and 
352.31  do everything necessary to liquidate and reduce to cash the 
352.32  decedent's interest and turn the proceeds of the sale or other 
352.33  disposition over to the personal representative.  The court may 
352.34  grant any legal or equitable relief including, but not limited 
352.35  to, ordering a partition of real estate under chapter 558 
352.36  necessary to make the value of the decedent's life estate or 
353.1   joint tenancy interest available to the estate for payment of a 
353.2   claim under this section. 
353.3      (h) Subject to administration, the personal representative 
353.4   shall use all of the cash or proceeds of interests to pay an 
353.5   allowable claim under this section.  The remaindermen or 
353.6   surviving joint tenants and their spouses, if any, may enter 
353.7   into a written agreement with the personal representative or the 
353.8   claimant to settle and satisfy obligations imposed at any time 
353.9   before or after a claim is filed. 
353.10     (i) The personal representative may provide any or all of 
353.11  the other owners, remaindermen, or surviving joint tenants with 
353.12  an affidavit terminating the decedent's estate's interest in 
353.13  real property the decedent owned as a life tenant or as a joint 
353.14  tenant with others, if the personal representative determines 
353.15  that neither the decedent nor any of the decedent's predeceased 
353.16  spouses received any medical assistance for which a claim could 
353.17  be filed under this section, or if the personal representative 
353.18  has filed an affidavit with the court that the estate has other 
353.19  assets sufficient to pay a claim, as presented, or if there is a 
353.20  written agreement under paragraph (h), or if the claim, as 
353.21  allowed, has been paid in full or to the full extent of the 
353.22  assets the estate has available to pay it.  The affidavit may be 
353.23  recorded in the office of the county recorder or filed in the 
353.24  office of the registrar of titles for the county in which the 
353.25  real property is located.  Except as provided in section 
353.26  514.981, subdivision 6, when recorded or filed, the affidavit 
353.27  shall terminate the decedent's interest in real estate the 
353.28  decedent owned as a life tenant or a joint tenant with others.  
353.29  The affidavit shall:  (1) be signed by the personal 
353.30  representative; (2) identify the decedent and the interest being 
353.31  terminated; (3) give recording information sufficient to 
353.32  identify the instrument that created the interest in real 
353.33  property being terminated; (4) legally describe the affected 
353.34  real property; (5) state that the personal representative has 
353.35  determined that neither the decedent nor any of the decedent's 
353.36  predeceased spouses received any medical assistance for which a 
354.1   claim could be filed under this section; (6) state that the 
354.2   decedent's estate has other assets sufficient to pay the claim, 
354.3   as presented, or that there is a written agreement between the 
354.4   personal representative and the claimant and the other owners or 
354.5   remaindermen or other joint tenants to satisfy the obligations 
354.6   imposed under this subdivision; and (7) state that the affidavit 
354.7   is being given to terminate the estate's interest under this 
354.8   subdivision, and any other contents as may be appropriate.  
354.9   The recorder or registrar of titles shall accept the affidavit 
354.10  for recording or filing.  The affidavit shall be effective as 
354.11  provided in this section and shall constitute notice even if it 
354.12  does not include recording information sufficient to identify 
354.13  the instrument creating the interest it terminates.  The 
354.14  affidavit shall be conclusive evidence of the stated facts. 
354.15     (j) The holder of a lien arising under subdivision 1c shall 
354.16  release the lien at the holder's expense against an interest 
354.17  terminated under paragraph (h) to the extent of the termination. 
354.18     (k) If a lien arising under subdivision 1c is not released 
354.19  under paragraph (j), prior to closing the estate, the personal 
354.20  representative shall deed the interest subject to the lien to 
354.21  the remaindermen or surviving joint tenants as their interests 
354.22  may appear.  Upon recording or filing, the deed shall work a 
354.23  merger of the recipient's life estate or joint tenancy interest, 
354.24  subject to the lien, into the remainder interest or interest the 
354.25  decedent and others owned jointly.  The lien shall attach to and 
354.26  run with the property to the extent of the decedent's interest 
354.27  at the time of the decedent's death. 
354.28     <b>[EFFECTIVE DATE.]</b> This section takes effect on August 1, 
354.29  2003, and applies to the estates of decedents who die on or 
354.30  after that date. 
354.31     Sec. 15.  Minnesota Statutes 2002, section 256B.15, is 
354.32  amended by adding a subdivision to read: 
354.33     Subd. 1i.  [ESTATES OF PERSONS RECEIVING MEDICAL ASSISTANCE 
354.34  AND SURVIVED BY OTHERS.] (a) For purposes of this subdivision, 
354.35  the person's estate consists of the person's probate estate and 
354.36  all of the person's interests in real property the person owned 
355.1   as a life tenant or a joint tenant at the time of the person's 
355.2   death. 
355.3      (b) Notwithstanding any law or rule to the contrary, this 
355.4   subdivision applies if a person received medical assistance for 
355.5   which a claim could be filed under this section but for the fact 
355.6   the person was survived by a spouse or by a person listed in 
355.7   subdivision 3, or if subdivision 4 applies to a claim arising 
355.8   under this section. 
355.9      (c) The person's life estate or joint tenancy interests in 
355.10  real property not subject to a medical assistance lien under 
355.11  sections 514.980 to 514.985 on the date of the person's death 
355.12  shall not end upon death and shall continue as provided in this 
355.13  subdivision.  The life estate in the estate shall be the portion 
355.14  of the interest in the property subject to the life estate that 
355.15  is equal to the life estate percentage factor for the life 
355.16  estate as listed in the Life Estate Mortality Table of the 
355.17  health care program's manual for a person who was the age of the 
355.18  medical assistance recipient on the date of the person's death.  
355.19  The joint tenancy interest in the estate shall be equal to the 
355.20  fractional interest the medical assistance recipient would have 
355.21  owned in the jointly held interest in the property had they and 
355.22  the other owners held title to the property as tenants in common 
355.23  on the date the medical assistance recipient died. 
355.24     (d) The county agency shall file a claim in the estate 
355.25  under this section on behalf of the claimant who shall be the 
355.26  commissioner of human services, notwithstanding that the 
355.27  decedent is survived by a spouse or a person listed in 
355.28  subdivision 3.  The claim, as allowed, shall not be paid by the 
355.29  estate and shall be disposed of as provided in this paragraph.  
355.30  The personal representative or the court shall make, execute, 
355.31  and deliver a lien in favor of the claimant on the decedent's 
355.32  interest in real property in the estate in the amount of the 
355.33  allowed claim on forms provided by the commissioner to the 
355.34  county agency filing the lien.  The lien shall bear interest as 
355.35  provided under section 524.3-806, shall attach to the property 
355.36  it describes upon filing or recording, and shall remain a lien 
356.1   on the real property it describes for a period of 20 years from 
356.2   the date it is filed or recorded.  The lien shall be a 
356.3   disposition of the claim sufficient to permit the estate to 
356.4   close. 
356.5      (e) The state or county agency shall file or record the 
356.6   lien in the office of the county recorder or registrar of titles 
356.7   for each county in which any of the real property is located.  
356.8   The recorder or registrar of titles shall accept the lien for 
356.9   filing or recording.  All recording or filing fees shall be paid 
356.10  by the department of human services.  The recorder or registrar 
356.11  of titles shall mail the recorded lien to the department of 
356.12  human services.  The lien need not be attested, certified, or 
356.13  acknowledged as a condition of recording or filing.  Upon 
356.14  recording or filing of a lien against a life estate or a joint 
356.15  tenancy interest, the interest subject to the lien shall merge 
356.16  into the remainder interest or the interest the recipient and 
356.17  others owned jointly.  The lien shall attach to and run with the 
356.18  property to the extent of the decedent's interest in the 
356.19  property at the time of the decedent's death as determined under 
356.20  this section.  
356.21     (f) The department shall make no adjustment or recovery 
356.22  under the lien until after the decedent's spouse, if any, has 
356.23  died, and only at a time when the decedent has no surviving 
356.24  child described in subdivision 3.  The estate, any owner of an 
356.25  interest in the property which is or may be subject to the lien, 
356.26  or any other interested party, may voluntarily pay off, settle, 
356.27  or otherwise satisfy the claim secured or to be secured by the 
356.28  lien at any time before or after the lien is filed or recorded.  
356.29  Such payoffs, settlements, and satisfactions shall be deemed to 
356.30  be voluntary repayments of past medical assistance payments for 
356.31  the benefit of the deceased recipient, and neither the process 
356.32  of settling the claim, the payment of the claim, or the 
356.33  acceptance of a payment shall constitute an adjustment or 
356.34  recovery that is prohibited under this subdivision. 
356.35     (g) The lien under this subdivision may be enforced or 
356.36  foreclosed in the manner provided by law for the enforcement of 
357.1   judgment liens against real estate or by a foreclosure by action 
357.2   under chapter 581.  When the lien is paid, satisfied, or 
357.3   otherwise discharged, the state or county agency shall prepare 
357.4   and file a release of lien at its own expense.  No action to 
357.5   foreclose the lien shall be commenced unless the lienholder has 
357.6   first given 30 days' prior written notice to pay the lien to the 
357.7   owners and parties in possession of the property subject to the 
357.8   lien.  The notice shall:  (1) include the name, address, and 
357.9   telephone number of the lienholder; (2) describe the lien; (3) 
357.10  give the amount of the lien; (4) inform the owner or party in 
357.11  possession that payment of the lien in full must be made to the 
357.12  lienholder within 30 days after service of the notice or the 
357.13  lienholder may begin proceedings to foreclose the lien; and (5) 
357.14  be served by personal service, certified mail, return receipt 
357.15  requested, ordinary first class mail, or by publishing it once 
357.16  in a newspaper of general circulation in the county in which any 
357.17  part of the property is located.  Service of the notice shall be 
357.18  complete upon mailing or publication. 
357.19     <b>[EFFECTIVE DATE.]</b> This section takes effect August 1, 2003, 
357.20  and applies to estates of decedents who die on and after that 
357.21  date. 
357.22     Sec. 16.  Minnesota Statutes 2002, section 256B.15, is 
357.23  amended by adding a subdivision to read: 
357.24     Subd. 1j.  [CLAIMS IN ESTATES OF DECEDENTS SURVIVED BY 
357.25  OTHER SURVIVORS.] For purposes of this subdivision, the 
357.26  provisions in subdivision 1i, paragraphs (a) to (c) apply. 
357.27     (a) If payment of a claim filed under this section is 
357.28  limited as provided in subdivision 4, and if the estate does not 
357.29  have other assets sufficient to pay the claim in full, as 
357.30  allowed, the personal representative or the court shall make, 
357.31  execute, and deliver a lien on the property in the estate that 
357.32  is exempt from the claim under subdivision 4 in favor of the 
357.33  commissioner of human services on forms provided by the 
357.34  commissioner to the county agency filing the claim.  If the 
357.35  estate pays a claim filed under this section in full from other 
357.36  assets of the estate, no lien shall be filed against the 
358.1   property described in subdivision 4. 
358.2      (b) The lien shall be in an amount equal to the unpaid 
358.3   balance of the allowed claim under this section remaining after 
358.4   the estate has applied all other available assets of the estate 
358.5   to pay the claim.  The property exempt under subdivision 4 shall 
358.6   not be sold, assigned, transferred, conveyed, encumbered, or 
358.7   distributed until after the personal representative has 
358.8   determined the estate has other assets sufficient to pay the 
358.9   allowed claim in full, or until after the lien has been filed or 
358.10  recorded.  The lien shall bear interest as provided under 
358.11  section 524.3-806, shall attach to the property it describes 
358.12  upon filing or recording, and shall remain a lien on the real 
358.13  property it describes for a period of 20 years from the date it 
358.14  is filed or recorded.  The lien shall be a disposition of the 
358.15  claim sufficient to permit the estate to close. 
358.16     (c) The state or county agency shall file or record the 
358.17  lien in the office of the county recorder or registrar of titles 
358.18  in each county in which any of the real property is located.  
358.19  The department shall pay the filing fees.  The lien need not be 
358.20  attested, certified, or acknowledged as a condition of recording 
358.21  or filing.  The recorder or registrar of titles shall accept the 
358.22  lien for filing or recording. 
358.23     (d) The commissioner shall make no adjustment or recovery 
358.24  under the lien until none of the persons listed in subdivision 4 
358.25  are residing on the property or until the property is sold or 
358.26  transferred.  The estate or any owner of an interest in the 
358.27  property that is or may be subject to the lien, or any other 
358.28  interested party, may voluntarily pay off, settle, or otherwise 
358.29  satisfy the claim secured or to be secured by the lien at any 
358.30  time before or after the lien is filed or recorded.  The 
358.31  payoffs, settlements, and satisfactions shall be deemed to be 
358.32  voluntary repayments of past medical assistance payments for the 
358.33  benefit of the deceased recipient and neither the process of 
358.34  settling the claim, the payment of the claim, or acceptance of a 
358.35  payment shall constitute an adjustment or recovery that is 
358.36  prohibited under this subdivision. 
359.1      (e) A lien under this subdivision may be enforced or 
359.2   foreclosed in the manner provided for by law for the enforcement 
359.3   of judgment liens against real estate or by a foreclosure by 
359.4   action under chapter 581.  When the lien has been paid, 
359.5   satisfied, or otherwise discharged, the claimant shall prepare 
359.6   and file a release of lien at the claimant's expense.  No action 
359.7   to foreclose the lien shall be commenced unless the lienholder 
359.8   has first given 30 days prior written notice to pay the lien to 
359.9   the record owners of the property and the parties in possession 
359.10  of the property subject to the lien.  The notice shall:  (1) 
359.11  include the name, address, and telephone number of the 
359.12  lienholder; (2) describe the lien; (3) give the amount of the 
359.13  lien; (4) inform the owner or party in possession that payment 
359.14  of the lien in full must be made to the lienholder within 30 
359.15  days after service of the notice or the lienholder may begin 
359.16  proceedings to foreclose the lien; and (5) be served by personal 
359.17  service, certified mail, return receipt requested, ordinary 
359.18  first class mail, or by publishing it once in a newspaper of 
359.19  general circulation in the county in which any part of the 
359.20  property is located.  Service shall be complete upon mailing or 
359.21  publication. 
359.22     (f) Upon filing or recording of a lien against a life 
359.23  estate or joint tenancy interest under this subdivision, the 
359.24  interest subject to the lien shall merge into the remainder 
359.25  interest or the interest the decedent and others owned jointly, 
359.26  effective on the date of recording and filing.  The lien shall 
359.27  attach to and run with the property to the extent of the 
359.28  decedent's interest in the property at the time of the 
359.29  decedent's death as determined under this section. 
359.30     (g)(1) An affidavit may be provided by a personal 
359.31  representative stating the personal representative has 
359.32  determined in good faith that a decedent survived by a spouse or 
359.33  a person listed in subdivision 3, or by a person listed in 
359.34  subdivision 4, or the decedent's predeceased spouse did not 
359.35  receive any medical assistance giving rise to a claim under this 
359.36  section, or that the real property described in subdivision 4 is 
360.1   not needed to pay in full a claim arising under this section. 
360.2      (2) The affidavit shall:  (i) describe the property and the 
360.3   interest being extinguished; (ii) name the decedent and give the 
360.4   date of death; (iii) state the facts listed in clause (1); (iv) 
360.5   state that the affidavit is being filed to terminate the life 
360.6   estate or joint tenancy interest created under this subdivision; 
360.7   (v) be signed by the personal representative; and (vi) contain 
360.8   any other information that the affiant deems appropriate. 
360.9      (3) Except as provided in section 514.981, subdivision 6, 
360.10  when the affidavit is filed or recorded, the life estate or 
360.11  joint tenancy interest in real property that the affidavit 
360.12  describes shall be terminated effective as of the date of filing 
360.13  or recording.  The termination shall be final and may not be set 
360.14  aside for any reason. 
360.15     <b>[EFFECTIVE DATE.]</b> This section takes effect on August 1, 
360.16  2003, and applies to the estates of decedents who die on or 
360.17  after that date. 
360.18     Sec. 17.  Minnesota Statutes 2002, section 256B.15, is 
360.19  amended by adding a subdivision to read: 
360.20     Subd. 1k.  [FILING.] Any notice, lien, release, or other 
360.21  document filed under subdivisions 1c to 1l, and any lien, 
360.22  release of lien, or other documents relating to a lien filed 
360.23  under subdivisions 1h, 1i, and 1j must be filed or recorded in 
360.24  the office of the county recorder or registrar of titles, as 
360.25  appropriate, in the county where the affected real property is 
360.26  located.  Notwithstanding section 386.77, the state or county 
360.27  agency shall pay any applicable filing fee.  An attestation, 
360.28  certification, or acknowledgment is not required as a condition 
360.29  of filing.  If the property described in the filing is 
360.30  registered property, the registrar of titles shall record the 
360.31  filing on the certificate of title for each parcel of property 
360.32  described in the filing.  If the property described in the 
360.33  filing is abstract property, the recorder shall file and index 
360.34  the property in the county's grantor-grantee indexes and any 
360.35  tract indexes the county maintains for each parcel of property 
360.36  described in the filing.  The recorder or registrar of titles 
361.1   shall return the filed document to the party filing it at no 
361.2   cost.  If the party making the filing provides a duplicate copy 
361.3   of the filing, the recorder or registrar of titles shall show 
361.4   the recording or filing data on the copy and return it to the 
361.5   party at no extra cost. 
361.6      <b>[EFFECTIVE DATE.]</b> This section takes effect on August 1, 
361.7   2003, and applies to the estates of decedents who die on or 
361.8   after that date. 
361.9      Sec. 18.  Minnesota Statutes 2002, section 256B.15, 
361.10  subdivision 2, is amended to read: 
361.11     Subd. 2.  [LIMITATIONS ON CLAIMS.] The claim shall include 
361.12  only the total amount of medical assistance rendered after age 
361.13  55 or during a period of institutionalization described in 
361.14  subdivision 1a, clause (b), and the total amount of general 
361.15  assistance medical care rendered, and shall not include 
361.16  interest.  Claims that have been allowed but not paid shall bear 
361.17  interest according to section 524.3-806, paragraph (d).  A claim 
361.18  against the estate of a surviving spouse who did not receive 
361.19  medical assistance, for medical assistance rendered for the 
361.20  predeceased spouse, is limited to the value of the assets of the 
361.21  estate that were marital property or jointly owned property at 
361.22  any time during the marriage.  Claims for alternative care shall 
361.23  be net of all premiums paid under section 256B.0913, subdivision 
361.24  12, on or after July 1, 2003, and shall be limited to services 
361.25  provided on or after July 1, 2003. 
361.26     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003, 
361.27  for decedents dying on or after that date. 
361.28     Sec. 19.  Minnesota Statutes 2002, section 256B.15, 
361.29  subdivision 3, is amended to read: 
361.30     Subd. 3.  [SURVIVING SPOUSE, MINOR, BLIND, OR DISABLED 
361.31  CHILDREN.] If a decedent who is survived by a spouse, or was 
361.32  single, or who was the surviving spouse of a married couple, and 
361.33  is survived by a child who is under age 21 or blind or 
361.34  permanently and totally disabled according to the supplemental 
361.35  security income program criteria, no a claim shall be filed 
361.36  against the estate according to this section. 
362.1      <b>[EFFECTIVE DATE.]</b> This section is effective August 1, 2003, 
362.2   and applies to decedents who die on or after that date. 
362.3      Sec. 20.  Minnesota Statutes 2002, section 256B.15, 
362.4   subdivision 4, is amended to read: 
362.5      Subd. 4.  [OTHER SURVIVORS.] If the decedent who was single 
362.6   or the surviving spouse of a married couple is survived by one 
362.7   of the following persons, a claim exists against the estate in 
362.8   an amount not to exceed the value of the nonhomestead property 
362.9   included in the estate and the personal representative shall 
362.10  make, execute, and deliver to the county agency a lien against 
362.11  the homestead property in the estate for any unpaid balance of 
362.12  the claim to the claimant as provided under this section: 
362.13     (a) a sibling who resided in the decedent medical 
362.14  assistance recipient's home at least one year before the 
362.15  decedent's institutionalization and continuously since the date 
362.16  of institutionalization; or 
362.17     (b) a son or daughter or a grandchild who resided in the 
362.18  decedent medical assistance recipient's home for at least two 
362.19  years immediately before the parent's or grandparent's 
362.20  institutionalization and continuously since the date of 
362.21  institutionalization, and who establishes by a preponderance of 
362.22  the evidence having provided care to the parent or grandparent 
362.23  who received medical assistance, that the care was provided 
362.24  before institutionalization, and that the care permitted the 
362.25  parent or grandparent to reside at home rather than in an 
362.26  institution. 
362.27     <b>[EFFECTIVE DATE.]</b> This section is effective August 1, 2003, 
362.28  and applies to decedents who die on or after that date. 
362.29     Sec. 21.  Minnesota Statutes 2002, section 514.981, 
362.30  subdivision 6, is amended to read: 
362.31     Subd. 6.  [TIME LIMITS; CLAIM LIMITS; LIENS ON LIFE ESTATES 
362.32  AND JOINT TENANCIES.] (a) A medical assistance lien is a lien on 
362.33  the real property it describes for a period of ten years from 
362.34  the date it attaches according to section 514.981, subdivision 
362.35  2, paragraph (a), except as otherwise provided for in sections 
362.36  514.980 to 514.985.  The agency may renew a medical assistance 
363.1   lien for an additional ten years from the date it would 
363.2   otherwise expire by recording or filing a certificate of renewal 
363.3   before the lien expires.  The certificate shall be recorded or 
363.4   filed in the office of the county recorder or registrar of 
363.5   titles for the county in which the lien is recorded or filed.  
363.6   The certificate must refer to the recording or filing data for 
363.7   the medical assistance lien it renews.  The certificate need not 
363.8   be attested, certified, or acknowledged as a condition for 
363.9   recording or filing.  The registrar of titles or the recorder 
363.10  shall file, record, index, and return the certificate of renewal 
363.11  in the same manner as provided for medical assistance liens in 
363.12  section 514.982, subdivision 2. 
363.13     (b) A medical assistance lien is not enforceable against 
363.14  the real property of an estate to the extent there is a 
363.15  determination by a court of competent jurisdiction, or by an 
363.16  officer of the court designated for that purpose, that there are 
363.17  insufficient assets in the estate to satisfy the agency's 
363.18  medical assistance lien in whole or in part because of the 
363.19  homestead exemption under section 256B.15, subdivision 4, the 
363.20  rights of the surviving spouse or minor children under section 
363.21  524.2-403, paragraphs (a) and (b), or claims with a priority 
363.22  under section 524.3-805, paragraph (a), clauses (1) to (4).  For 
363.23  purposes of this section, the rights of the decedent's adult 
363.24  children to exempt property under section 524.2-403, paragraph 
363.25  (b), shall not be considered costs of administration under 
363.26  section 524.3-805, paragraph (a), clause (1). 
363.27     (c) Notwithstanding any law or rule to the contrary, the 
363.28  provisions in clauses (1) to (7) apply if a life estate subject 
363.29  to a medical assistance lien ends according to its terms, or if 
363.30  a medical assistance recipient who owns a life estate or any 
363.31  interest in real property as a joint tenant that is subject to a 
363.32  medical assistance lien dies. 
363.33     (1) The medical assistance recipient's life estate or joint 
363.34  tenancy interest in the real property shall not end upon the 
363.35  recipient's death but shall merge into the remainder interest or 
363.36  other interest in real property the medical assistance recipient 
364.1   owned in joint tenancy with others.  The medical assistance lien 
364.2   shall attach to and run with the remainder or other interest in 
364.3   the real property to the extent of the medical assistance 
364.4   recipient's interest in the property at the time of the 
364.5   recipient's death as determined under this section. 
364.6      (2) If the medical assistance recipient's interest was a 
364.7   life estate in real property, the lien shall be a lien against 
364.8   the portion of the remainder equal to the percentage factor for 
364.9   the life estate of a person the medical assistance recipient's 
364.10  age on the date the life estate ended according to its terms or 
364.11  the date of the medical assistance recipient's death as listed 
364.12  in the Life Estate Mortality Table in the health care program's 
364.13  manual. 
364.14     (3) If the medical assistance recipient owned the interest 
364.15  in real property in joint tenancy with others, the lien shall be 
364.16  a lien against the portion of that interest equal to the 
364.17  fractional interest the medical assistance recipient would have 
364.18  owned in the jointly owned interest had the medical assistance 
364.19  recipient and the other owners held title to that interest as 
364.20  tenants in common on the date the medical assistance recipient 
364.21  died. 
364.22     (4) The medical assistance lien shall remain a lien against 
364.23  the remainder or other jointly owned interest for the length of 
364.24  time and be renewable as provided in paragraph (a). 
364.25     (5) Subdivision 5, paragraphs (a), clause (4), (b), clauses 
364.26  (1) and (2); and subdivision 6, paragraph (b), do not apply to 
364.27  medical assistance liens which attach to interests in real 
364.28  property as provided under this subdivision. 
364.29     (6) The continuation of a medical assistance recipient's 
364.30  life estate or joint tenancy interest in real property after the 
364.31  medical assistance recipient's death for the purpose of 
364.32  recovering medical assistance provided for in sections 514.980 
364.33  to 514.985 modifies common law principles holding that these 
364.34  interests terminate on the death of the holder. 
364.35     (7) Notwithstanding any law or rule to the contrary, no 
364.36  release, satisfaction, discharge, or affidavit under section 
365.1   256B.15 shall extinguish or terminate the life estate or joint 
365.2   tenancy interest of a medical assistance recipient subject to a 
365.3   lien under sections 514.980 to 514.985 on the date the recipient 
365.4   dies. 
365.5      <b>[EFFECTIVE DATE.]</b> This section is effective August 1, 2003, 
365.6   and applies to all medical assistance liens recorded or filed on 
365.7   or after that date. 
365.8      Sec. 22.  [514.991] [ALTERNATIVE CARE LIENS; DEFINITIONS.] 
365.9      Subdivision 1.  [APPLICABILITY.] The definitions in this 
365.10  section apply to sections 514.991 to 514.995. 
365.11     Subd. 2.  [ALTERNATIVE CARE AGENCY, AGENCY, OR 
365.12  DEPARTMENT.] "Alternative care agency," "agency," or "department"
365.13  means the department of human services when it pays for or 
365.14  provides alternative care benefits for a nonmedical assistance 
365.15  recipient directly or through a county social services agency 
365.16  under chapter 256B according to section 256B.0913. 
365.17     Subd. 3.  [ALTERNATIVE CARE BENEFIT OR 
365.18  BENEFITS.] "Alternative care benefit" or "benefits" means a 
365.19  benefit provided to a nonmedical assistance recipient under 
365.20  chapter 256B according to section 256B.0913. 
365.21     Subd. 4.  [ALTERNATIVE CARE RECIPIENT OR 
365.22  RECIPIENT.] "Alternative care recipient" or "recipient" means a 
365.23  person who receives alternative care grant benefits. 
365.24     Subd. 5.  [ALTERNATIVE CARE LIEN OR LIEN.] "Alternative 
365.25  care lien" or "lien" means a lien filed under sections 514.992 
365.26  to 514.995. 
365.27     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003, 
365.28  for services for persons first enrolling in the alternative care 
365.29  program on or after that date and on the first day of the first 
365.30  eligibility renewal period for persons enrolled in the 
365.31  alternative care program prior to July 1, 2003. 
365.32     Sec. 23.  [514.992] [ALTERNATIVE CARE LIEN.] 
365.33     Subdivision 1.  [PROPERTY SUBJECT TO LIEN; LIEN AMOUNT.] (a)
365.34  Subject to sections 514.991 to 514.995, payments made by an 
365.35  alternative care agency to provide benefits to a recipient or to 
365.36  the recipient's spouse who owns property in this state 
366.1   constitute a lien in favor of the agency on all real property 
366.2   the recipient owns at and after the time the benefits are first 
366.3   paid. 
366.4      (b) The amount of the lien is limited to benefits paid for 
366.5   services provided to recipients over 55 years of age and 
366.6   provided on and after July 1, 2003. 
366.7      Subd. 2.  [ATTACHMENT.] (a) A lien attaches to and becomes 
366.8   enforceable against specific real property as of the date when 
366.9   all of the following conditions are met: 
366.10     (1) the agency has paid benefits for a recipient; 
366.11     (2) the recipient has been given notice and an opportunity 
366.12  for a hearing under paragraph (b); 
366.13     (3) the lien has been filed as provided for in section 
366.14  514.993 or memorialized on the certificate of title for the 
366.15  property it describes; and 
366.16     (4) all restrictions against enforcement have ceased to 
366.17  apply. 
366.18     (b) An agency may not file a lien until it has sent the 
366.19  recipient, their authorized representative, or their legal 
366.20  representative written notice of its lien rights by certified 
366.21  mail, return receipt requested, or registered mail and there has 
366.22  been an opportunity for a hearing under section 256.045.  No 
366.23  person other than the recipient shall have a right to a hearing 
366.24  under section 256.045 prior to the time the lien is filed.  The 
366.25  hearing shall be limited to whether the agency has met all of 
366.26  the prerequisites for filing the lien and whether any of the 
366.27  exceptions in this section apply. 
366.28     (c) An agency may not file a lien against the recipient's 
366.29  homestead when any of the following exceptions apply: 
366.30     (1) while the recipient's spouse is also physically present 
366.31  and lawfully and continuously residing in the homestead; 
366.32     (2) a child of the recipient who is under age 21 or who is 
366.33  blind or totally and permanently disabled according to 
366.34  supplemental security income criteria is also physically present 
366.35  on the property and lawfully and continuously residing on the 
366.36  property from and after the date the recipient first receives 
367.1   benefits; 
367.2      (3) a child of the recipient who has also lawfully and 
367.3   continuously resided on the property for a period beginning at 
367.4   least two years before the first day of the month in which the 
367.5   recipient began receiving alternative care, and who provided 
367.6   uncompensated care to the recipient which enabled the recipient 
367.7   to live without alternative care services for the two-year 
367.8   period; 
367.9      (4) a sibling of the recipient who has an ownership 
367.10  interest in the property of record in the office of the county 
367.11  recorder or registrar of titles for the county in which the real 
367.12  property is located and who has also continuously occupied the 
367.13  homestead for a period of at least one year immediately prior to 
367.14  the first day of the first month in which the recipient received 
367.15  benefits and continuously since that date. 
367.16     (d) A lien only applies to the real property it describes. 
367.17     Subd. 3.  [CONTINUATION OF LIEN.] A lien remains effective 
367.18  from the time it is filed until it is paid, satisfied, 
367.19  discharged, or becomes unenforceable under sections 514.991 to 
367.20  514.995. 
367.21     Subd. 4.  [PRIORITY OF LIEN.] (a) A lien which attaches to 
367.22  the real property it describes is subject to the rights of 
367.23  anyone else whose interest in the real property is perfected of 
367.24  record before the lien has been recorded or filed under section 
367.25  514.993, including: 
367.26     (1) an owner, other than the recipient or the recipient's 
367.27  spouse; 
367.28     (2) a good faith purchaser for value without notice of the 
367.29  lien; 
367.30     (3) a holder of a mortgage or security interest; or 
367.31     (4) a judgment lien creditor whose judgment lien has 
367.32  attached to the recipient's interest in the real property. 
367.33     (b) The rights of the other person have the same 
367.34  protections against an alternative care lien as are afforded 
367.35  against a judgment lien that arises out of an unsecured 
367.36  obligation and arises as of the time of the filing of an 
368.1   alternative care grant lien under section 514.993.  The lien 
368.2   shall be inferior to a lien for property taxes and special 
368.3   assessments and shall be superior to all other matters first 
368.4   appearing of record after the time and date the lien is filed or 
368.5   recorded. 
368.6      Subd. 5.  [SETTLEMENT, SUBORDINATION, AND RELEASE.] (a) An 
368.7   agency may, with absolute discretion, settle or subordinate the 
368.8   lien to any other lien or encumbrance of record upon the terms 
368.9   and conditions it deems appropriate. 
368.10     (b) The agency filing the lien shall release and discharge 
368.11  the lien: 
368.12     (1) if it has been paid, discharged, or satisfied; 
368.13     (2) if it has received reimbursement for the amounts 
368.14  secured by the lien, has entered into a binding and legally 
368.15  enforceable agreement under which it is reimbursed for the 
368.16  amount of the lien, or receives other collateral sufficient to 
368.17  secure payment of the lien; 
368.18     (3) against some, but not all, of the property it describes 
368.19  upon the terms, conditions, and circumstances the agency deems 
368.20  appropriate; 
368.21     (4) to the extent it cannot be lawfully enforced against 
368.22  the property it describes because of an error, omission, or 
368.23  other material defect in the legal description contained in the 
368.24  lien or a necessary prerequisite to enforcement of the lien; and 
368.25     (5) if, in its discretion, it determines the filing or 
368.26  enforcement of the lien is contrary to the public interest. 
368.27     (c) The agency executing the lien shall execute and file 
368.28  the release as provided for in section 514.993, subdivision 2. 
368.29     Subd. 6.  [LENGTH OF LIEN.] (a) A lien shall be a lien on 
368.30  the real property it describes for a period of ten years from 
368.31  the date it attaches according to subdivision 2, paragraph (a), 
368.32  except as otherwise provided for in sections 514.992 to 
368.33  514.995.  The agency filing the lien may renew the lien for one 
368.34  additional ten-year period from the date it would otherwise 
368.35  expire by recording or filing a certificate of renewal before 
368.36  the lien expires.  The certificate of renewal shall be recorded 
369.1   or filed in the office of the county recorder or registrar of 
369.2   titles for the county in which the lien is recorded or filed.  
369.3   The certificate must refer to the recording or filing data for 
369.4   the lien it renews.  The certificate need not be attested, 
369.5   certified, or acknowledged as a condition for recording or 
369.6   filing.  The recorder or registrar of titles shall record, file, 
369.7   index, and return the certificate of renewal in the same manner 
369.8   provided for liens in section 514.993, subdivision 2. 
369.9      (b) An alternative care lien is not enforceable against the 
369.10  real property of an estate to the extent there is a 
369.11  determination by a court of competent jurisdiction, or by an 
369.12  officer of the court designated for that purpose, that there are 
369.13  insufficient assets in the estate to satisfy the lien in whole 
369.14  or in part because of the homestead exemption under section 
369.15  256B.15, subdivision 4, the rights of a surviving spouse or a 
369.16  minor child under section 524.2-403, paragraphs (a) and (b), or 
369.17  claims with a priority under section 524.3-805, paragraph (a), 
369.18  clauses (1) to (4).  For purposes of this section, the rights of 
369.19  the decedent's adult children to exempt property under section 
369.20  524.2-403, paragraph (b), shall not be considered costs of 
369.21  administration under section 524.3-805, paragraph (a), clause 
369.22  (1). 
369.23     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003, 
369.24  for services for persons first enrolling in the alternative care 
369.25  program on or after that date and on the first day of the first 
369.26  eligibility renewal period for persons enrolled in the 
369.27  alternative care program prior to July 1, 2003. 
369.28     Sec. 24.  [514.993] [LIEN; CONTENTS AND FILING.] 
369.29     Subdivision 1.  [CONTENTS.] A lien shall be dated and must 
369.30  contain: 
369.31     (1) the recipient's full name, last known address, and 
369.32  social security number; 
369.33     (2) a statement that benefits have been paid to or for the 
369.34  recipient's benefit; 
369.35     (3) a statement that all of the recipient's interests in 
369.36  the real property described in the lien may be subject to or 
370.1   affected by the agency's right to reimbursement for benefits; 
370.2      (4) a legal description of the real property subject to the 
370.3   lien and whether it is registered or abstract property; and 
370.4      (5) such other contents, if any, as the agency deems 
370.5   appropriate. 
370.6      Subd. 2.  [FILING.] Any lien, release, or other document 
370.7   required or permitted to be filed under sections 514.991 to 
370.8   514.995 must be recorded or filed in the office of the county 
370.9   recorder or registrar of titles, as appropriate, in the county 
370.10  where the real property is located.  Notwithstanding section 
370.11  386.77, the agency shall pay the applicable filing fee for any 
370.12  documents filed under sections 514.991 to 514.995.  An 
370.13  attestation, certification, or acknowledgment is not required as 
370.14  a condition of filing.  If the property described in the lien is 
370.15  registered property, the registrar of titles shall record it on 
370.16  the certificate of title for each parcel of property described 
370.17  in the lien.  If the property described in the lien is abstract 
370.18  property, the recorder shall file the lien in the county's 
370.19  grantor-grantee indexes and any tract indexes the county 
370.20  maintains for each parcel of property described in the lien.  
370.21  The recorder or registrar shall return the recorded or filed 
370.22  lien to the agency at no cost.  If the agency provides a 
370.23  duplicate copy of the lien, the recorder or registrar of titles 
370.24  shall show the recording or filing data on the copy and return 
370.25  it to the agency at no cost.  The agency is responsible for 
370.26  filing any lien, release, or other documents under sections 
370.27  514.991 to 514.995. 
370.28     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003, 
370.29  for services for persons first enrolling in the alternative care 
370.30  program on or after that date and on the first day of the first 
370.31  eligibility renewal period for persons enrolled in the 
370.32  alternative care program prior to July 1, 2003. 
370.33     Sec. 25.  [514.994] [ENFORCEMENT; OTHER REMEDIES.] 
370.34     Subdivision 1.  [FORECLOSURE OR ENFORCEMENT OF LIEN.] The 
370.35  agency may enforce or foreclose a lien filed under sections 
370.36  514.991 to 514.995 in the manner provided for by law for 
371.1   enforcement of judgment liens against real estate or by a 
371.2   foreclosure by action under chapter 581.  The lien shall remain 
371.3   enforceable as provided for in sections 514.991 to 514.995 
371.4   notwithstanding any laws limiting the enforceability of 
371.5   judgments. 
371.6      Subd. 2.  [HOMESTEAD EXEMPTION.] The lien may not be 
371.7   enforced against the homestead property of the recipient or the 
371.8   spouse while they physically occupy it as their lawful residence.
371.9      Subd. 3.  [AGENCY CLAIM OR REMEDY.] Sections 514.992 to 
371.10  514.995 do not limit the agency's right to file a claim against 
371.11  the recipient's estate or the estate of the recipient's spouse, 
371.12  do not limit any other claims for reimbursement the agency may 
371.13  have, and do not limit the availability of any other remedy to 
371.14  the agency. 
371.15     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003, 
371.16  for services for persons first enrolling in the alternative care 
371.17  program on or after that date and on the first day of the first 
371.18  eligibility renewal period for persons enrolled in the 
371.19  alternative care program prior to July 1, 2003. 
371.20     Sec. 26.  [514.995] [AMOUNTS RECEIVED TO SATISFY LIEN.] 
371.21     Amounts the agency receives to satisfy the lien must be 
371.22  deposited in the state treasury and credited to the fund from 
371.23  which the benefits were paid. 
371.24     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003, 
371.25  for services for persons first enrolling in the alternative care 
371.26  program on or after that date and on the first day of the first 
371.27  eligibility renewal period for persons enrolled in the 
371.28  alternative care program prior to July 1, 2003. 
371.29     Sec. 27.  Minnesota Statutes 2002, section 524.3-805, is 
371.30  amended to read: 
371.31     524.3-805 [CLASSIFICATION OF CLAIMS.] 
371.32     (a) If the applicable assets of the estate are insufficient 
371.33  to pay all claims in full, the personal representative shall 
371.34  make payment in the following order: 
371.35     (1) costs and expenses of administration; 
371.36     (2) reasonable funeral expenses; 
372.1      (3) debts and taxes with preference under federal law; 
372.2      (4) reasonable and necessary medical, hospital, or nursing 
372.3   home expenses of the last illness of the decedent, including 
372.4   compensation of persons attending the decedent, a claim filed 
372.5   under section 256B.15 for recovery of expenditures for 
372.6   alternative care for nonmedical assistance recipients under 
372.7   section 256B.0913, and including a claim filed pursuant to 
372.8   section 256B.15; 
372.9      (5) reasonable and necessary medical, hospital, and nursing 
372.10  home expenses for the care of the decedent during the year 
372.11  immediately preceding death; 
372.12     (6) debts with preference under other laws of this state, 
372.13  and state taxes; 
372.14     (7) all other claims. 
372.15     (b) No preference shall be given in the payment of any 
372.16  claim over any other claim of the same class, and a claim due 
372.17  and payable shall not be entitled to a preference over claims 
372.18  not due, except that if claims for expenses of the last illness 
372.19  involve only claims filed under section 256B.15 for recovery of 
372.20  expenditures for alternative care for nonmedical assistance 
372.21  recipients under section 256B.0913, section 246.53 for costs of 
372.22  state hospital care and claims filed under section 256B.15, 
372.23  claims filed to recover expenditures for alternative care for 
372.24  nonmedical assistance recipients under section 256B.0913 shall 
372.25  have preference over claims filed under both section 246.53 and 
372.26  other claims filed under section 256B.15, and claims filed under 
372.27  section 246.53 have preference over claims filed under section 
372.28  256B.15 for recovery of amounts other than those for 
372.29  expenditures for alternative care for nonmedical assistance 
372.30  recipients under section 256B.0913. 
372.31     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003, 
372.32  for decedents dying on or after that date. 
372.33                             ARTICLE 9
372.34            ADULT MENTAL HEALTH AND ALTERNATIVE PROGRAMS
372.35                 FOR OFFENDERS WITH MENTAL ILLNESS
372.36     Section 1.  [256B.0596] [MENTAL HEALTH CASE MANAGEMENT.] 
373.1      Counties shall contract with eligible providers willing to 
373.2   provide mental health case management services under section 
373.3   256B.0625, subdivision 20.  In order to be eligible, in addition 
373.4   to general provider requirements under this chapter, the 
373.5   provider must: 
373.6      (1) be willing to provide the mental health case management 
373.7   services; and 
373.8      (2) have a minimum of at least one contact with the client 
373.9   per week. 
373.10     Sec. 2.  [256B.0622] [INTENSIVE REHABILITATIVE MENTAL 
373.11  HEALTH SERVICES.] 
373.12     Subdivision 1.  [SCOPE.] Subject to federal approval, 
373.13  medical assistance covers medically necessary, intensive 
373.14  nonresidential and residential rehabilitative mental health 
373.15  services as defined in subdivision 2, for recipients as defined 
373.16  in subdivision 3, when the services are provided by an entity 
373.17  meeting the standards in this section. 
373.18     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
373.19  following terms have the meanings given them.  
373.20     (a) "Intensive nonresidential rehabilitative mental health 
373.21  services" means adult rehabilitative mental health services as 
373.22  defined in section 256B.0623, subdivision 2, paragraph (a), 
373.23  except that these services are provided by a multidisciplinary 
373.24  staff using a total team approach consistent with assertive 
373.25  community treatment, fair weather lodge, and other 
373.26  evidence-based practices, and directed to recipients with a 
373.27  serious mental illness who require intensive services. 
373.28     (b) "Intensive residential rehabilitative mental health 
373.29  services" means short-term, time-limited services provided in a 
373.30  residential setting to recipients who are in need of more 
373.31  restrictive settings and are at risk of significant functional 
373.32  deterioration if they do not receive these services.  Services 
373.33  are designed to develop and enhance psychiatric stability, 
373.34  personal and emotional adjustment, self-sufficiency, and skills 
373.35  to live in a more independent setting.  Services must be 
373.36  directed toward a targeted discharge date with specified client 
374.1   outcomes and must be consistent with evidence-based practices. 
374.2      (c) "Evidence-based practices" are nationally recognized 
374.3   mental health services that are proven by substantial research 
374.4   to be effective in helping individuals with serious mental 
374.5   illness obtain specific treatment goals. 
374.6      (d) "Overnight staff" means a member of the intensive 
374.7   residential rehabilitative mental health treatment team who is 
374.8   responsible during hours when recipients are typically asleep. 
374.9      (e) "Treatment team" means all staff who provide services 
374.10  under this section to recipients.  At a minimum, this includes 
374.11  the clinical supervisor, mental health professionals, mental 
374.12  health practitioners, and mental health rehabilitation workers. 
374.13     Subd. 3.  [ELIGIBILITY.] An eligible recipient is an 
374.14  individual who: 
374.15     (1) is age 18 or older; 
374.16     (2) is eligible for medical assistance; 
374.17     (3) is diagnosed with a mental illness; 
374.18     (4) because of a mental illness, has substantial disability 
374.19  and functional impairment in three or more of the areas listed 
374.20  in section 245.462, subdivision 11a, so that self-sufficiency is 
374.21  markedly reduced; 
374.22     (5) has one or more of the following:  a history of two or 
374.23  more inpatient hospitalizations in the past year, significant 
374.24  independent living instability, homelessness, or very frequent 
374.25  use of mental health and related services yielding poor 
374.26  outcomes; and 
374.27     (6) in the written opinion of a licensed mental health 
374.28  professional, has the need for mental health services that 
374.29  cannot be met with other available community-based services, or 
374.30  is likely to experience a mental health crisis or require a more 
374.31  restrictive setting if intensive rehabilitative mental health 
374.32  services are not provided. 
374.33     Subd. 4.  [PROVIDER CERTIFICATION AND CONTRACT 
374.34  REQUIREMENTS.] (a) The intensive nonresidential rehabilitative 
374.35  mental health services provider must: 
374.36     (1) have a contract with the host county to provide 
375.1   intensive adult rehabilitative mental health services; and 
375.2      (2) be certified by the commissioner as being in compliance 
375.3   with this section and section 256B.0623. 
375.4      (b) The intensive residential rehabilitative mental health 
375.5   services provider must: 
375.6      (1) be licensed under Minnesota Rules, parts 9520.0500 to 
375.7   9520.0670; 
375.8      (2) not exceed 16 beds per site; 
375.9      (3) comply with the additional standards in this section; 
375.10  and 
375.11     (4) have a contract with the host county to provide these 
375.12  services. 
375.13     (c) The commissioner shall develop procedures for counties 
375.14  and providers to submit contracts and other documentation as 
375.15  needed to allow the commissioner to determine whether the 
375.16  standards in this section are met. 
375.17     Subd. 5.  [STANDARDS APPLICABLE TO BOTH NONRESIDENTIAL AND 
375.18  RESIDENTIAL PROVIDERS.] (a) Services must be provided by 
375.19  qualified staff as defined in section 256B.0623, subdivision 5, 
375.20  who are trained and supervised according to section 256B.0623, 
375.21  subdivision 6, except that mental health rehabilitation workers 
375.22  acting as overnight staff are not required to comply with 
375.23  section 256B.0623, subdivision 5, clause (3)(iv). 
375.24     (b) The clinical supervisor must be an active member of the 
375.25  treatment team.  The treatment team must meet with the clinical 
375.26  supervisor at least weekly to discuss recipients' progress and 
375.27  make rapid adjustments to meet recipients' needs.  The team 
375.28  meeting shall include recipient-specific case reviews and 
375.29  general treatment discussions among team members.  
375.30  Recipient-specific case reviews and planning must be documented 
375.31  in the individual recipient's treatment record. 
375.32     (c) Treatment staff must have prompt access in person or by 
375.33  telephone to a mental health practitioner or mental health 
375.34  professional.  The provider must have the capacity to promptly 
375.35  and appropriately respond to emergent needs and make any 
375.36  necessary staffing adjustments to assure the health and safety 
376.1   of recipients. 
376.2      (d) The initial functional assessment must be completed 
376.3   within ten days of intake and updated at least every three 
376.4   months or prior to discharge from the service, whichever comes 
376.5   first. 
376.6      (e) The initial individual treatment plan must be completed 
376.7   within ten days of intake and reviewed and updated at least 
376.8   monthly with the recipient.  
376.9      Subd. 6.  [ADDITIONAL STANDARDS APPLICABLE ONLY TO 
376.10  INTENSIVE RESIDENTIAL REHABILITATIVE MENTAL HEALTH 
376.11  SERVICES.] (a) The provider of intensive residential services 
376.12  must have sufficient staff to provide 24 hour per day coverage 
376.13  to deliver the rehabilitative services described in the 
376.14  treatment plan and to safely supervise and direct the activities 
376.15  of recipients given the recipient's level of behavioral and 
376.16  psychiatric stability, cultural needs, and vulnerability.  The 
376.17  provider must have the capacity within the facility to provide 
376.18  integrated services for chemical dependency, illness management 
376.19  services, and family education when appropriate. 
376.20     (b) At a minimum: 
376.21     (1) staff must be available and provide direction and 
376.22  supervision whenever recipients are present in the facility; 
376.23     (2) staff must remain awake during all work hours; 
376.24     (3) there must be a staffing ratio of at least one to nine 
376.25  recipients for each day and evening shift.  If more than nine 
376.26  recipients are present at the residential site, there must be a 
376.27  minimum of two staff during day and evening shifts, one of whom 
376.28  must be a mental health practitioner or mental health 
376.29  professional; 
376.30     (4) if services are provided to recipients who need the 
376.31  services of a medical professional, the provider shall assure 
376.32  that these services are provided either by the provider's own 
376.33  medical staff or through referral to a medical professional; and 
376.34     (5) the provider must employ or contract with a licensed 
376.35  registered nurse to ensure the effectiveness and safety of 
376.36  medication administration in the facility. 
377.1      Subd. 7.  [ADDITIONAL STANDARDS FOR NONRESIDENTIAL 
377.2   SERVICES.] The standards in this subdivision apply to intensive 
377.3   nonresidential rehabilitative mental health services. 
377.4      (1) The treatment team must use team treatment, not an 
377.5   individual treatment model. 
377.6      (2) The clinical supervisor must function as a practicing 
377.7   clinician at least on a part-time basis. 
377.8      (3) The staffing ratio must not exceed ten recipients to 
377.9   one full-time equivalent treatment team position. 
377.10     (4) Services must be available at times that meet client 
377.11  needs. 
377.12     (5) The treatment team must actively and assertively engage 
377.13  and reach out to the recipient's family members and significant 
377.14  others, after obtaining the recipient's permission.  
377.15     (6) The treatment team must establish ongoing communication 
377.16  and collaboration between the team, family, and significant 
377.17  others and educate the family and significant others about 
377.18  mental illness, symptom management, and the family's role in 
377.19  treatment. 
377.20     (7) The treatment team must provide interventions to 
377.21  promote positive interpersonal relationships. 
377.22     Subd. 8.  [MEDICAL ASSISTANCE PAYMENT FOR INTENSIVE 
377.23  REHABILITATIVE MENTAL HEALTH SERVICES.] (a) Payment for 
377.24  residential and nonresidential services in this section shall be 
377.25  based on one daily rate per provider inclusive of the following 
377.26  services received by an eligible recipient in a given calendar 
377.27  day:  all rehabilitative services under this section and crisis 
377.28  stabilization services under section 256B.0624. 
377.29     (b) Except as indicated in paragraph (c), payment will not 
377.30  be made to more than one entity for each recipient for services 
377.31  provided under this section on a given day.  If services under 
377.32  this section are provided by a team that includes staff from 
377.33  more than one entity, the team must determine how to distribute 
377.34  the payment among the members. 
377.35     (c) The host county shall recommend to the commissioner one 
377.36  rate for each entity that will bill medical assistance for 
378.1   residential services under this section and two rates for each 
378.2   nonresidential provider.  The first nonresidential rate is for 
378.3   recipients who are not receiving residential services.  The 
378.4   second nonresidential rate is for recipients who are temporarily 
378.5   receiving residential services and need continued contact with 
378.6   the nonresidential team to assure timely discharge from 
378.7   residential services.  In developing these rates, the host 
378.8   county shall consider and document: 
378.9      (1) the cost for similar services in the local trade area; 
378.10     (2) actual costs incurred by entities providing the 
378.11  services; 
378.12     (3) the intensity and frequency of services to be provided 
378.13  to each recipient; 
378.14     (4) the degree to which recipients will receive services 
378.15  other than services under this section; 
378.16     (5) the costs of other services, such as case management, 
378.17  that will be separately reimbursed; and 
378.18     (6) input from the local planning process authorized by the 
378.19  adult mental health initiative under section 245.4661, regarding 
378.20  recipients' service needs. 
378.21     (d) The rate for intensive rehabilitative mental health 
378.22  services must exclude room and board, as defined in section 
378.23  256I.03, subdivision 6, and services not covered under this 
378.24  section, such as case management, partial hospitalization, home 
378.25  care, and inpatient services.  Physician services that are not 
378.26  separately billed may be included in the rate to the extent that 
378.27  a psychiatrist is a member of the treatment team.  The county's 
378.28  recommendation shall specify the period for which the rate will 
378.29  be applicable, not to exceed two years. 
378.30     (e) When services under this section are provided by an 
378.31  assertive community team, case management functions must be an 
378.32  integral part of the team.  The county must allocate costs which 
378.33  are reimbursable under this section versus costs which are 
378.34  reimbursable through case management or other reimbursement, so 
378.35  that payment is not duplicated. 
378.36     (f) The rate for a provider must not exceed the rate 
379.1   charged by that provider for the same service to other payors. 
379.2      (g) The commissioner shall approve or reject the county's 
379.3   rate recommendation, based on the commissioner's own analysis of 
379.4   the criteria in paragraph (c). 
379.5      Subd. 9.  [PROVIDER ENROLLMENT; RATE SETTING FOR 
379.6   COUNTY-OPERATED ENTITIES.] Counties that employ their own staff 
379.7   to provide services under this section shall apply directly to 
379.8   the commissioner for enrollment and rate setting.  In this case, 
379.9   a county contract is not required and the commissioner shall 
379.10  perform the program review and rate setting duties which would 
379.11  otherwise be required of counties under this section. 
379.12     Subd. 10.  [PROVIDER ENROLLMENT; RATE SETTING FOR 
379.13  SPECIALIZED PROGRAM.] A provider proposing to serve a 
379.14  subpopulation of eligible recipients may bypass the county 
379.15  approval procedures in this section and receive approval for 
379.16  provider enrollment and rate setting directly from the 
379.17  commissioner under the following circumstances: 
379.18     (1) the provider demonstrates that the subpopulation to be 
379.19  served requires a specialized program which is not available 
379.20  from county-approved entities; and 
379.21     (2) the subpopulation to be served is of such a low 
379.22  incidence that it is not feasible to develop a program serving a 
379.23  single county or regional group of counties. 
379.24     For providers meeting the criteria in clauses (1) and (2), 
379.25  the commissioner shall perform the program review and rate 
379.26  setting duties which would otherwise be required of counties 
379.27  under this section. 
379.28     Sec. 3.  Minnesota Statutes 2002, section 256B.0623, 
379.29  subdivision 2, is amended to read: 
379.30     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
379.31  following terms have the meanings given them. 
379.32     (a) "Adult rehabilitative mental health services" means 
379.33  mental health services which are rehabilitative and enable the 
379.34  recipient to develop and enhance psychiatric stability, social 
379.35  competencies, personal and emotional adjustment, and independent 
379.36  living and community skills, when these abilities are impaired 
380.1   by the symptoms of mental illness.  Adult rehabilitative mental 
380.2   health services are also appropriate when provided to enable a 
380.3   recipient to retain stability and functioning, if the recipient 
380.4   would be at risk of significant functional decompensation or 
380.5   more restrictive service settings without these services. 
380.6      (1) Adult rehabilitative mental health services instruct, 
380.7   assist, and support the recipient in areas such as:  
380.8   interpersonal communication skills, community resource 
380.9   utilization and integration skills, crisis assistance, relapse 
380.10  prevention skills, health care directives, budgeting and 
380.11  shopping skills, healthy lifestyle skills and practices, cooking 
380.12  and nutrition skills, transportation skills, medication 
380.13  education and monitoring, mental illness symptom management 
380.14  skills, household management skills, employment-related skills, 
380.15  and transition to community living services. 
380.16     (2) These services shall be provided to the recipient on a 
380.17  one-to-one basis in the recipient's home or another community 
380.18  setting or in groups. 
380.19     (b) "Medication education services" means services provided 
380.20  individually or in groups which focus on educating the recipient 
380.21  about mental illness and symptoms; the role and effects of 
380.22  medications in treating symptoms of mental illness; and the side 
380.23  effects of medications.  Medication education is coordinated 
380.24  with medication management services and does not duplicate it.  
380.25  Medication education services are provided by physicians, 
380.26  pharmacists, physician's assistants, or registered nurses. 
380.27     (c) "Transition to community living services" means 
380.28  services which maintain continuity of contact between the 
380.29  rehabilitation services provider and the recipient and which 
380.30  facilitate discharge from a hospital, residential treatment 
380.31  program under Minnesota Rules, chapter 9505, board and lodging 
380.32  facility, or nursing home.  Transition to community living 
380.33  services are not intended to provide other areas of adult 
380.34  rehabilitative mental health services.  
380.35     Sec. 4.  Minnesota Statutes 2002, section 256B.0623, 
380.36  subdivision 4, is amended to read: 
381.1      Subd. 4.  [PROVIDER ENTITY STANDARDS.] (a) The provider 
381.2   entity must be: 
381.3      (1) a county operated entity certified by the state; or 
381.4      (2) a noncounty entity certified by the entity's host 
381.5   county certified by the state following the certification 
381.6   process and procedures developed by the commissioner. 
381.7      (b) The certification process is a determination as to 
381.8   whether the entity meets the standards in this subdivision.  The 
381.9   certification must specify which adult rehabilitative mental 
381.10  health services the entity is qualified to provide. 
381.11     (c) If an entity seeks to provide services outside its host 
381.12  county, it A noncounty provider entity must obtain additional 
381.13  certification from each county in which it will provide 
381.14  services.  The additional certification must be based on the 
381.15  adequacy of the entity's knowledge of that county's local health 
381.16  and human service system, and the ability of the entity to 
381.17  coordinate its services with the other services available in 
381.18  that county.  A county-operated entity must obtain this 
381.19  additional certification from any other county in which it will 
381.20  provide services. 
381.21     (d) Recertification must occur at least every two three 
381.22  years. 
381.23     (e) The commissioner may intervene at any time and 
381.24  decertify providers with cause.  The decertification is subject 
381.25  to appeal to the state.  A county board may recommend that the 
381.26  state decertify a provider for cause. 
381.27     (f) The adult rehabilitative mental health services 
381.28  provider entity must meet the following standards: 
381.29     (1) have capacity to recruit, hire, manage, and train 
381.30  mental health professionals, mental health practitioners, and 
381.31  mental health rehabilitation workers; 
381.32     (2) have adequate administrative ability to ensure 
381.33  availability of services; 
381.34     (3) ensure adequate preservice and inservice and ongoing 
381.35  training for staff; 
381.36     (4) ensure that mental health professionals, mental health 
382.1   practitioners, and mental health rehabilitation workers are 
382.2   skilled in the delivery of the specific adult rehabilitative 
382.3   mental health services provided to the individual eligible 
382.4   recipient; 
382.5      (5) ensure that staff is capable of implementing culturally 
382.6   specific services that are culturally competent and appropriate 
382.7   as determined by the recipient's culture, beliefs, values, and 
382.8   language as identified in the individual treatment plan; 
382.9      (6) ensure enough flexibility in service delivery to 
382.10  respond to the changing and intermittent care needs of a 
382.11  recipient as identified by the recipient and the individual 
382.12  treatment plan; 
382.13     (7) ensure that the mental health professional or mental 
382.14  health practitioner, who is under the clinical supervision of a 
382.15  mental health professional, involved in a recipient's services 
382.16  participates in the development of the individual treatment 
382.17  plan; 
382.18     (8) assist the recipient in arranging needed crisis 
382.19  assessment, intervention, and stabilization services; 
382.20     (9) ensure that services are coordinated with other 
382.21  recipient mental health services providers and the county mental 
382.22  health authority and the federally recognized American Indian 
382.23  authority and necessary others after obtaining the consent of 
382.24  the recipient.  Services must also be coordinated with the 
382.25  recipient's case manager or care coordinator if the recipient is 
382.26  receiving case management or care coordination services; 
382.27     (10) develop and maintain recipient files, individual 
382.28  treatment plans, and contact charting; 
382.29     (11) develop and maintain staff training and personnel 
382.30  files; 
382.31     (12) submit information as required by the state; 
382.32     (13) establish and maintain a quality assurance plan to 
382.33  evaluate the outcome of services provided; 
382.34     (14) keep all necessary records required by law; 
382.35     (15) deliver services as required by section 245.461; 
382.36     (16) comply with all applicable laws; 
383.1      (17) be an enrolled Medicaid provider; 
383.2      (18) maintain a quality assurance plan to determine 
383.3   specific service outcomes and the recipient's satisfaction with 
383.4   services; and 
383.5      (19) develop and maintain written policies and procedures 
383.6   regarding service provision and administration of the provider 
383.7   entity. 
383.8      (g) The commissioner shall develop statewide procedures for 
383.9   provider certification, including timelines for counties to 
383.10  certify qualified providers. 
383.11     Sec. 5.  Minnesota Statutes 2002, section 256B.0623, 
383.12  subdivision 5, is amended to read: 
383.13     Subd. 5.  [QUALIFICATIONS OF PROVIDER STAFF.] Adult 
383.14  rehabilitative mental health services must be provided by 
383.15  qualified individual provider staff of a certified provider 
383.16  entity.  Individual provider staff must be qualified under one 
383.17  of the following criteria: 
383.18     (1) a mental health professional as defined in section 
383.19  245.462, subdivision 18, clauses (1) to (5).  If the recipient 
383.20  has a current diagnostic assessment by a licensed mental health 
383.21  professional as defined in section 245.462, subdivision 18, 
383.22  clauses (1) to (5), recommending receipt of adult mental health 
383.23  rehabilitative services, the definition of mental health 
383.24  professional for purposes of this section includes a person who 
383.25  is qualified under section 245.462, subdivision 18, clause (6), 
383.26  and who holds a current and valid national certification as a 
383.27  certified rehabilitation counselor or certified psychosocial 
383.28  rehabilitation practitioner; 
383.29     (2) a mental health practitioner as defined in section 
383.30  245.462, subdivision 17.  The mental health practitioner must 
383.31  work under the clinical supervision of a mental health 
383.32  professional; or 
383.33     (3) a mental health rehabilitation worker.  A mental health 
383.34  rehabilitation worker means a staff person working under the 
383.35  direction of a mental health practitioner or mental health 
383.36  professional and under the clinical supervision of a mental 
384.1   health professional in the implementation of rehabilitative 
384.2   mental health services as identified in the recipient's 
384.3   individual treatment plan who: 
384.4      (i) is at least 21 years of age; 
384.5      (ii) has a high school diploma or equivalent; 
384.6      (iii) has successfully completed 30 hours of training 
384.7   during the past two years in all of the following areas:  
384.8   recipient rights, recipient-centered individual treatment 
384.9   planning, behavioral terminology, mental illness, co-occurring 
384.10  mental illness and substance abuse, psychotropic medications and 
384.11  side effects, functional assessment, local community resources, 
384.12  adult vulnerability, recipient confidentiality; and 
384.13     (iv) meets the qualifications in subitem (A) or (B): 
384.14     (A) has an associate of arts degree in one of the 
384.15  behavioral sciences or human services, or is a registered nurse 
384.16  without a bachelor's degree, or who within the previous ten 
384.17  years has:  
384.18     (1) three years of personal life experience with serious 
384.19  and persistent mental illness; 
384.20     (2) three years of life experience as a primary caregiver 
384.21  to an adult with a serious mental illness or traumatic brain 
384.22  injury; or 
384.23     (3) 4,000 hours of supervised paid work experience in the 
384.24  delivery of mental health services to adults with a serious 
384.25  mental illness or traumatic brain injury; or 
384.26     (B)(1) is fluent in the non-English language or competent 
384.27  in the culture of the ethnic group to which at least 50 20 
384.28  percent of the mental health rehabilitation worker's clients 
384.29  belong; 
384.30     (2) receives during the first 2,000 hours of work, monthly 
384.31  documented individual clinical supervision by a mental health 
384.32  professional; 
384.33     (3) has 18 hours of documented field supervision by a 
384.34  mental health professional or practitioner during the first 160 
384.35  hours of contact work with recipients, and at least six hours of 
384.36  field supervision quarterly during the following year; 
385.1      (4) has review and cosignature of charting of recipient 
385.2   contacts during field supervision by a mental health 
385.3   professional or practitioner; and 
385.4      (5) has 40 hours of additional continuing education on 
385.5   mental health topics during the first year of employment. 
385.6      Sec. 6.  Minnesota Statutes 2002, section 256B.0623, 
385.7   subdivision 6, is amended to read: 
385.8      Subd. 6.  [REQUIRED TRAINING AND SUPERVISION.] (a) Mental 
385.9   health rehabilitation workers must receive ongoing continuing 
385.10  education training of at least 30 hours every two years in areas 
385.11  of mental illness and mental health services and other areas 
385.12  specific to the population being served.  Mental health 
385.13  rehabilitation workers must also be subject to the ongoing 
385.14  direction and clinical supervision standards in paragraphs (c) 
385.15  and (d). 
385.16     (b) Mental health practitioners must receive ongoing 
385.17  continuing education training as required by their professional 
385.18  license; or if the practitioner is not licensed, the 
385.19  practitioner must receive ongoing continuing education training 
385.20  of at least 30 hours every two years in areas of mental illness 
385.21  and mental health services.  Mental health practitioners must 
385.22  meet the ongoing clinical supervision standards in paragraph (c).
385.23     (c) Clinical supervision may be provided by a full- or 
385.24  part-time qualified professional employed by or under contract 
385.25  with the provider entity.  Clinical supervision may be provided 
385.26  by interactive videoconferencing according to procedures 
385.27  developed by the commissioner.  A mental health professional 
385.28  providing clinical supervision of staff delivering adult 
385.29  rehabilitative mental health services must provide the following 
385.30  guidance: 
385.31     (1) review the information in the recipient's file; 
385.32     (2) review and approve initial and updates of individual 
385.33  treatment plans; 
385.34     (3) meet with mental health rehabilitation workers and 
385.35  practitioners, individually or in small groups, at least monthly 
385.36  to discuss treatment topics of interest to the workers and 
386.1   practitioners; 
386.2      (4) meet with mental health rehabilitation workers and 
386.3   practitioners, individually or in small groups, at least monthly 
386.4   to discuss treatment plans of recipients, and approve by 
386.5   signature and document in the recipient's file any resulting 
386.6   plan updates; 
386.7      (5) meet at least twice a month monthly with the directing 
386.8   mental health practitioner, if there is one, to review needs of 
386.9   the adult rehabilitative mental health services program, review 
386.10  staff on-site observations and evaluate mental health 
386.11  rehabilitation workers, plan staff training, review program 
386.12  evaluation and development, and consult with the directing 
386.13  practitioner; and 
386.14     (6) be available for urgent consultation as the individual 
386.15  recipient needs or the situation necessitates; and 
386.16     (7) provide clinical supervision by full- or part-time 
386.17  mental health professionals employed by or under contract with 
386.18  the provider entity. 
386.19     (d) An adult rehabilitative mental health services provider 
386.20  entity must have a treatment director who is a mental health 
386.21  practitioner or mental health professional.  The treatment 
386.22  director must ensure the following: 
386.23     (1) while delivering direct services to recipients, a newly 
386.24  hired mental health rehabilitation worker must be directly 
386.25  observed delivering services to recipients by the a mental 
386.26  health practitioner or mental health professional for at least 
386.27  six hours per 40 hours worked during the first 160 hours that 
386.28  the mental health rehabilitation worker works; 
386.29     (2) the mental health rehabilitation worker must receive 
386.30  ongoing on-site direct service observation by a mental health 
386.31  professional or mental health practitioner for at least six 
386.32  hours for every six months of employment; 
386.33     (3) progress notes are reviewed from on-site service 
386.34  observation prepared by the mental health rehabilitation worker 
386.35  and mental health practitioner for accuracy and consistency with 
386.36  actual recipient contact and the individual treatment plan and 
387.1   goals; 
387.2      (4) immediate availability by phone or in person for 
387.3   consultation by a mental health professional or a mental health 
387.4   practitioner to the mental health rehabilitation services worker 
387.5   during service provision; 
387.6      (5) oversee the identification of changes in individual 
387.7   recipient treatment strategies, revise the plan, and communicate 
387.8   treatment instructions and methodologies as appropriate to 
387.9   ensure that treatment is implemented correctly; 
387.10     (6) model service practices which:  respect the recipient, 
387.11  include the recipient in planning and implementation of the 
387.12  individual treatment plan, recognize the recipient's strengths, 
387.13  collaborate and coordinate with other involved parties and 
387.14  providers; 
387.15     (7) ensure that mental health practitioners and mental 
387.16  health rehabilitation workers are able to effectively 
387.17  communicate with the recipients, significant others, and 
387.18  providers; and 
387.19     (8) oversee the record of the results of on-site 
387.20  observation and charting evaluation and corrective actions taken 
387.21  to modify the work of the mental health practitioners and mental 
387.22  health rehabilitation workers. 
387.23     (e) A mental health practitioner who is providing treatment 
387.24  direction for a provider entity must receive supervision at 
387.25  least monthly from a mental health professional to: 
387.26     (1) identify and plan for general needs of the recipient 
387.27  population served; 
387.28     (2) identify and plan to address provider entity program 
387.29  needs and effectiveness; 
387.30     (3) identify and plan provider entity staff training and 
387.31  personnel needs and issues; and 
387.32     (4) plan, implement, and evaluate provider entity quality 
387.33  improvement programs.  
387.34     Sec. 7.  Minnesota Statutes 2002, section 256B.0623, 
387.35  subdivision 8, is amended to read: 
387.36     Subd. 8.  [DIAGNOSTIC ASSESSMENT.] Providers of adult 
388.1   rehabilitative mental health services must complete a diagnostic 
388.2   assessment as defined in section 245.462, subdivision 9, within 
388.3   five days after the recipient's second visit or within 30 days 
388.4   after intake, whichever occurs first.  In cases where a 
388.5   diagnostic assessment is available that reflects the recipient's 
388.6   current status, and has been completed within 180 days preceding 
388.7   admission, an update must be completed.  An update shall include 
388.8   a written summary by a mental health professional of the 
388.9   recipient's current mental health status and service needs.  If 
388.10  the recipient's mental health status has changed significantly 
388.11  since the adult's most recent diagnostic assessment, a new 
388.12  diagnostic assessment is required. For initial implementation of 
388.13  adult rehabilitative mental health services, until June 30, 
388.14  2005, a diagnostic assessment that reflects the recipient's 
388.15  current status and has been completed within the past three 
388.16  years preceding admission is acceptable. 
388.17     Sec. 8.  Minnesota Statutes 2002, section 256B.82, is 
388.18  amended to read: 
388.19     256B.82 [PREPAID PLANS AND MENTAL HEALTH REHABILITATIVE 
388.20  SERVICES.] 
388.21     Medical assistance and MinnesotaCare prepaid health plans 
388.22  may include coverage for adult mental health rehabilitative 
388.23  services under section 256B.0623, intensive rehabilitative 
388.24  services under section 256B.0622, and adult mental health crisis 
388.25  response services under section 256B.0624, beginning January 1, 
388.26  2004 2005. 
388.27     By January 15, 2003 2004, the commissioner shall report to 
388.28  the legislature how these services should be included in prepaid 
388.29  plans.  The commissioner shall consult with mental health 
388.30  advocates, health plans, and counties in developing this 
388.31  report.  The report recommendations must include a plan to 
388.32  ensure coordination of these services between health plans and 
388.33  counties, assure recipient access to essential community 
388.34  providers, and monitor the health plans' delivery of services 
388.35  through utilization review and quality standards. 
388.36     Sec. 9.  [609.1055] [OFFENDERS WITH SERIOUS AND PERSISTENT 
389.1   MENTAL ILLNESS; ALTERNATIVE PLACEMENT.] 
389.2      When a court intends to commit an offender with a serious 
389.3   and persistent mental illness, as defined in section 245.462, 
389.4   subdivision 20, paragraph (c), to the custody of the 
389.5   commissioner of corrections for imprisonment at a state 
389.6   correctional facility, either when initially pronouncing a 
389.7   sentence or when revoking an offender's probation, the court, 
389.8   when consistent with public safety, may instead place the 
389.9   offender on probation or continue the offender's probation and 
389.10  require as a condition of the probation that the offender 
389.11  successfully complete an appropriate supervised alternative 
389.12  living program having a mental health treatment component.  This 
389.13  section applies only to offenders who would have a remaining 
389.14  term of imprisonment after adjusting for credit for prior 
389.15  imprisonment, if any, of more than one year. 
389.16     Sec. 10.  [ALTERNATIVE LIVING PROGRAMS FOR CERTAIN 
389.17  OFFENDERS WITH MENTAL ILLNESS.] 
389.18     The commissioner of corrections shall cooperate with 
389.19  nonprofit entities to establish supervised alternative living 
389.20  programs for offenders with serious and persistent mental 
389.21  illness, as defined in Minnesota Statutes, section 245.462, 
389.22  subdivision 20, paragraph (c).  Each program must be structured 
389.23  to accommodate between eight and 13 offenders who are required 
389.24  to successfully complete the program as a condition of probation.
389.25  Each program must provide a residential component and include 
389.26  mental health treatment and counseling, living and employment 
389.27  skills development, and supported employment.  Program directors 
389.28  shall report program violations by participating offenders to 
389.29  the offender's correctional agent. 
389.30     By January 15, 2006, the commissioners of corrections and 
389.31  human services shall evaluate the alternative placements 
389.32  provided to offenders with mental illness under Minnesota 
389.33  Statutes, section 609.1055.  The evaluation shall address the 
389.34  following issues:  number of offenders who obtain and maintain 
389.35  employment in the community, number sentenced to prison, costs, 
389.36  and other issues deemed appropriate by the commissioners.  The 
390.1   commissioners shall identify barriers to successful 
390.2   implementation and recommend any legislative changes needed.  
390.3   The evaluation and other information required under this section 
390.4   must be provided to the chairs of the house of representatives 
390.5   and senate finance and policy committees having jurisdiction 
390.6   over corrections and human services issues by the date specified 
390.7   in this section.  
390.8      Sec. 11.  [RULE 36, MINNESOTA RULES, PARTS 9520.0500 TO 
390.9   9520.0690, LICENSURE FOR ALTERNATIVE LIVING PROGRAMS FOR CERTAIN 
390.10  OFFENDERS WITH MENTAL ILLNESS.] 
390.11     The commissioner of human services shall approve additional 
390.12  Rule 36 licenses in order to accommodate alternative living 
390.13  programs for certain offenders with mental illness if: 
390.14     (1) the provider meets applicable licensing standards; and 
390.15     (2) additional Rule 36 programs are necessary to meet the 
390.16  demand for alternative living programs for certain offenders 
390.17  with mental illness. 
390.18     Sec. 12.  [FINANCING FOR RULE 36 PROGRAMS FOR ALTERNATIVE 
390.19  LIVING PROGRAMS FOR CERTAIN OFFENDERS WITH MENTAL ILLNESS.] 
390.20     Applicants for licensure of a Rule 36 program to provide an 
390.21  alternative living program for certain offenders with mental 
390.22  illness must be given special consideration and priority from 
390.23  the Minnesota housing finance agency, as allowed, in order to 
390.24  secure home loans for an alternative living program for certain 
390.25  offenders with mental illness. 
390.26                             ARTICLE 10
390.27             DEPARTMENT OF HUMAN SERVICES MISCELLANEOUS
390.28     Section 1.  [245.945] [REIMBURSEMENT TO OMBUDSMAN FOR 
390.29  MENTAL HEALTH AND MENTAL RETARDATION.] 
390.30     The commissioner shall obtain federal financial 
390.31  participation for eligible activity by the ombudsman for mental 
390.32  health and mental retardation.  The ombudsman shall maintain and 
390.33  transmit to the department of human services documentation that 
390.34  is necessary in order to obtain federal funds. 
390.35     Sec. 2.  Minnesota Statutes 2002, section 245A.10, is 
390.36  amended to read: 
391.1      245A.10 [FEES.] 
391.2      Subdivision 1.  [APPLICATION OR LICENSE FEE REQUIRED, 
391.3   PROGRAMS EXEMPT FROM FEE.] (a) Unless exempt under paragraph 
391.4   (b), the commissioner shall charge a fee for evaluation of 
391.5   applications and inspection of programs, other than family day 
391.6   care and foster care, which are licensed under this chapter.  
391.7   The commissioner may charge a fee for the licensing of school 
391.8   age child care programs, in an amount sufficient to cover the 
391.9   cost to the state agency of processing the license. 
391.10     (b) Notwithstanding paragraph (a), no application or 
391.11  license fee shall be charged by the commissioner for family 
391.12  child care, child foster care, adult foster care, or 
391.13  state-operated programs, unless the state-operated program is an 
391.14  intermediate care facility for persons with mental retardation 
391.15  or related conditions (ICF/MR). 
391.16     Subd. 2.  [APPLICATION FEE FOR INITIAL LICENSE OR 
391.17  CERTIFICATION.] (a) Unless exempt from paying a license fee 
391.18  under subdivision 1, an applicant for an initial license or 
391.19  certification issued by the commissioner shall submit a $500 
391.20  application fee with each new application required under this 
391.21  subdivision.  The application fee shall not be prorated, is 
391.22  nonrefundable, and is in lieu of the annual license or 
391.23  certification fee that expires on December 31.  The commissioner 
391.24  shall not process an application until the application fee is 
391.25  paid.  
391.26     (b) Except as provided in clauses (1) to (3), an applicant 
391.27  shall apply for a license to provide services at a specific 
391.28  location.  
391.29     (1) For a license to provide waivered services to persons 
391.30  with developmental disabilities or related conditions, an 
391.31  applicant shall submit an application for each county in which 
391.32  the waivered services will be provided.  
391.33     (2) For a license to provide semi-independent living 
391.34  services to persons with developmental disabilities or related 
391.35  conditions, an applicant shall submit a single application to 
391.36  provide services statewide. 
392.1      (3) For a license to provide independent living assistance 
392.2   for youth under section 245A.22, an applicant shall submit a 
392.3   single application to provide services statewide.  
392.4      Subd. 3.  [ANNUAL LICENSE OR CERTIFICATION FEE FOR PROGRAMS 
392.5   WITH LICENSED CAPACITY.] (a) Child care centers and programs 
392.6   with a licensed capacity shall pay an annual nonrefundable 
392.7   license or certification fee based on the following schedule: 
392.8       Licensed Capacity          Child Care         Residential
392.9                                  Center             Program
392.10                                 License Fee        License Fee
392.11       1 to 24 persons               $300               $400
392.12       25 to 49 persons              $450               $600
392.13       50 to 74 persons              $600               $800
392.14       75 to 99 persons              $750             $1,000
392.15       100 to 124 persons            $900             $1,200
392.16       125 to 149 persons          $1,200             $1,400
392.17       150 to 174 persons          $1,400             $1,600
392.18       175 to 199 persons          $1,600             $1,800
392.19       200 to 224 persons          $1,800             $2,000
392.20       225 or more persons         $2,000             $2,500
392.21     (b) A day training and habilitation program serving persons 
392.22  with developmental disabilities or related conditions shall be 
392.23  assessed a license fee based on the schedule in paragraph (a) 
392.24  unless the license holder serves more than 50 percent of the 
392.25  same persons at two or more locations in the community.  When a 
392.26  day training and habilitation program serves more than 50 
392.27  percent of the same persons in two or more locations in a 
392.28  community, the day training and habilitation program shall pay a 
392.29  license fee based on the licensed capacity of the largest 
392.30  facility and the other facility or facilities shall be charged a 
392.31  license fee based on a licensed capacity of a residential 
392.32  program serving one to 24 persons. 
392.33     Subd. 4.  [ANNUAL LICENSE OR CERTIFICATION FEE FOR PROGRAMS 
392.34  WITHOUT A LICENSED CAPACITY.] (a) Except as provided in 
392.35  paragraph (b), a program without a stated licensed capacity 
392.36  shall pay a license or certification fee of $400.  
393.1      (b) A mental health center or mental health clinic 
393.2   requesting certification for purposes of insurance and 
393.3   subscriber contract reimbursement under Minnesota Rules, parts 
393.4   9520.0750 to 9520.0870 shall pay a certification fee of $1,000 
393.5   per year.  If the mental health center or mental health clinic 
393.6   provides services at a primary location with satellite 
393.7   facilities, the satellite facilities shall be certified with the 
393.8   primary location without an additional charge. 
393.9      Subd. 5.  [LICENSE NOT ISSUED UNTIL LICENSE OR 
393.10  CERTIFICATION FEE IS PAID.] The commissioner shall not issue a 
393.11  license or certification until the license or certification fee 
393.12  is paid.  The commissioner shall send a bill for the license or 
393.13  certification fee to the billing address identified by the 
393.14  license holder.  If the license holder does not submit the 
393.15  license or certification fee payment by the due date, the 
393.16  commissioner shall send the license holder a past due notice.  
393.17  If the license holder fails to pay the license or certification 
393.18  fee by the due date on the past due notice, the commissioner 
393.19  shall send a final notice to the license holder informing the 
393.20  license holder that the program license will expire on December 
393.21  31 unless the license fee is paid before December 31.  If a 
393.22  license expires, the program is no longer licensed and, unless 
393.23  exempt from licensure under section 245A.03, subdivision 2, must 
393.24  not operate after the expiration date.  After a license expires, 
393.25  if the former license holder wishes to provide licensed 
393.26  services, the former license holder must submit a new license 
393.27  application and application fee under subdivision 2. 
393.28     Sec. 3.  Minnesota Statutes 2002, section 245A.11, 
393.29  subdivision 2a, is amended to read: 
393.30     Subd. 2a.  [ADULT FOSTER CARE LICENSE CAPACITY.] (a) An 
393.31  adult foster care license holder may have a maximum license 
393.32  capacity of five if all persons in care are age 55 or over and 
393.33  do not have a serious and persistent mental illness or a 
393.34  developmental disability.  
393.35     (b) The commissioner may grant variances to paragraph (a) 
393.36  to allow a foster care provider with a licensed capacity of five 
394.1   persons to admit an individual under the age of 55 if the 
394.2   variance complies with section 245A.04, subdivision 9, and 
394.3   approval of the variance is recommended by the county in which 
394.4   the licensed foster care provider is located. 
394.5      (c) The commissioner may grant variances to paragraph (a) 
394.6   to allow the use of a fifth bed for emergency crisis services 
394.7   for a person with serious and persistent mental illness or a 
394.8   developmental disability, regardless of age, if the variance 
394.9   complies with section 245A.04, subdivision 9, and approval of 
394.10  the variance is recommended by the county in which the licensed 
394.11  foster care provider is located. 
394.12     (d) Notwithstanding paragraph (a), the commissioner may 
394.13  issue an adult foster care license with a capacity of five 
394.14  adults when the capacity is recommended by the county licensing 
394.15  agency of the county in which the facility is located and if the 
394.16  recommendation verifies that: 
394.17     (1) the facility meets the physical environment 
394.18  requirements in the adult foster care licensing rule; 
394.19     (2) the five-bed living arrangement is specified for each 
394.20  resident in the resident's: 
394.21     (i) individualized plan of care; 
394.22     (ii) individual service plan under section 256B.092, 
394.23  subdivision 1b, if required; or 
394.24     (iii) individual resident placement agreement under 
394.25  Minnesota Rules, part 9555.5105, subpart 19, if required; 
394.26     (3) the license holder obtains written and signed informed 
394.27  consent from each resident or resident's legal representative 
394.28  documenting the resident's informed choice to living in the home 
394.29  and that the resident's refusal to consent would not have 
394.30  resulted in service termination; and 
394.31     (4) the facility was licensed for adult foster care before 
394.32  March 1, 2003. 
394.33     (e) The commissioner shall not issue a new adult foster 
394.34  care license under paragraph (d) after June 30, 2005.  The 
394.35  commissioner shall allow a facility with an adult foster care 
394.36  license issued under paragraph (d) before June 30, 2005, to 
395.1   continue with a capacity of five or six adults if the license 
395.2   holder continues to comply with the requirements in paragraph 
395.3   (d). 
395.4      Sec. 4.  [245A.146] [CRIB USE IN LICENSED CHILD CARE 
395.5   SETTINGS.] 
395.6      Subdivision 1.  [CONSUMER PRODUCT SAFETY COMMISSION WEB 
395.7   LINK.] The commissioner shall maintain a link from the licensing 
395.8   division Web site to the United States Consumer Product Safety 
395.9   Commission Web site that addresses crib safety information. 
395.10     Subd. 2.  [DOCUMENTATION REQUIREMENT FOR LICENSE 
395.11  HOLDERS.] (a) Effective January 1, 2004, all licensed child care 
395.12  providers must maintain the following documentation for every 
395.13  crib used by or that is accessible to any child in care: 
395.14     (1) the crib's brand name; and 
395.15     (2) the crib's model number. 
395.16     (b) Any crib for which the license holder does not have the 
395.17  documentation required under paragraph (a) must not be used by 
395.18  or be accessible to children in care. 
395.19     Subd. 3.  [LICENSE HOLDER CERTIFICATION OF CRIBS.] (a) 
395.20  Annually, from the date printed on the license, all license 
395.21  holders shall check all their cribs' brand names and model 
395.22  numbers against the United States Consumer Product Safety 
395.23  Commission Web site listing of unsafe cribs. 
395.24     (b) The license holder shall maintain written documentation 
395.25  to be reviewed on site for each crib showing that the review 
395.26  required in paragraph (a) has been completed, and which of the 
395.27  following conditions applies: 
395.28     (1) the crib was not identified as unsafe on the United 
395.29  States Consumer Product Safety Commission Web site; 
395.30     (2) the crib was identified as unsafe on the United States 
395.31  Consumer Product Safety Commission Web site, but the license 
395.32  holder has taken the action directed by the United States 
395.33  Consumer Product Safety Commission to make the crib safe; or 
395.34     (3) the crib was identified as unsafe on the United States 
395.35  Consumer Product Safety Commission Web site, and the license 
395.36  holder has removed the crib so that it is no longer used by or 
396.1   accessible to children in care.  
396.2      (c) Documentation of the review completed under this 
396.3   subdivision shall be maintained by the license holder on site 
396.4   and made available to parents of children in care and the 
396.5   commissioner. 
396.6      Subd. 4.  [CRIB SAFETY STANDARDS AND INSPECTION.] (a) On at 
396.7   least a monthly basis, the license holder shall perform safety 
396.8   inspections of every crib used by or that is accessible to any 
396.9   child in care, and must document the following: 
396.10     (1) no corner posts extend more than 1/16 of an inch; 
396.11     (2) no spaces between side slats exceed 2.375 inches; 
396.12     (3) no mattress supports can be easily dislodged from any 
396.13  point of the crib; 
396.14     (4) no cutout designs are present on end panels; 
396.15     (5) no heights of the rail and end panel are less than 26 
396.16  inches when measured from the top of the rail or panel in the 
396.17  highest position to the top of the mattress support in its 
396.18  lowest position; 
396.19     (6) no heights of the rail and end panel are less than nine 
396.20  inches when measured from the top of the rail or panel in its 
396.21  lowest position to the top of the mattress support in its 
396.22  highest position; 
396.23     (7) no screws, bolts, or hardware are loose or not secured, 
396.24  and there is no use of woodscrews in components that are 
396.25  designed to be assembled and disassembled by the crib owner; 
396.26     (8) no sharp edges, points, or rough surfaces are present; 
396.27     (9) no wood surfaces are rough, splintered, split, or 
396.28  cracked; 
396.29     (10) there are no tears in mesh of fabric sides in 
396.30  non-full-size cribs; 
396.31     (11) no mattress pads in non-full-size mesh or fabric cribs 
396.32  exceed one inch; and 
396.33     (12) no gaps between the mattress and any sides of the crib 
396.34  are present. 
396.35     (b) Upon discovery of any unsafe condition identified by 
396.36  the license holder during the safety inspection required under 
397.1   paragraph (a), the license holder shall immediately remove the 
397.2   crib so that it is no longer used by or accessible to children 
397.3   in care until necessary repairs are completed or the crib is 
397.4   destroyed. 
397.5      (c) Documentation of the inspections and actions taken with 
397.6   unsafe cribs required in paragraphs (a) and (b) shall be 
397.7   maintained on site by the license holder and made available to 
397.8   parents of children in care and the commissioner. 
397.9      Subd. 5.  [COMMISSIONER INSPECTION.] During routine 
397.10  licensing inspections, and when investigating complaints 
397.11  regarding alleged violations of this section, the commissioner 
397.12  shall review the provider's documentation required under 
397.13  subdivisions 3 and 4. 
397.14     Subd. 6.  [FAILURE TO COMPLY.] The commissioner may issue a 
397.15  licensing action under section 245A.06 or 245A.07 if a license 
397.16  holder fails to comply with the requirements of this section. 
397.17     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2004.
397.18     Sec. 5.  Minnesota Statutes 2002, section 252.27, 
397.19  subdivision 2a, is amended to read: 
397.20     Subd. 2a.  [CONTRIBUTION AMOUNT.] (a) The natural or 
397.21  adoptive parents of a minor child, including a child determined 
397.22  eligible for medical assistance without consideration of 
397.23  parental income, must contribute monthly to the cost of 
397.24  services, unless the child is married or has been married, 
397.25  parental rights have been terminated, or the child's adoption is 
397.26  subsidized according to section 259.67 or through title IV-E of 
397.27  the Social Security Act. 
397.28     (b) For households with adjusted gross income equal to or 
397.29  greater than 100 percent of federal poverty guidelines, the 
397.30  parental contribution shall be the greater of a minimum monthly 
397.31  fee of $25 for households with adjusted gross income of $30,000 
397.32  and over, or an amount to be computed by applying the following 
397.33  schedule of rates to the adjusted gross income of the natural or 
397.34  adoptive parents that exceeds 150 percent of the federal poverty 
397.35  guidelines for the applicable household size, the following 
397.36  schedule of rates: 
398.1      (1) on the amount of adjusted gross income over 150 percent 
398.2   of poverty, but not over $50,000, ten percent if the adjusted 
398.3   gross income is equal to or greater than 100 percent of federal 
398.4   poverty guidelines and less than 175 percent of federal poverty 
398.5   guidelines, the parental contribution is $4 per month; 
398.6      (2) on if the amount of adjusted gross income over 150 
398.7   percent of poverty and over $50,000 but not over $60,000, 12 
398.8   percent is equal to or greater than 175 percent of federal 
398.9   poverty guidelines and less than or equal to 375 percent of 
398.10  federal poverty guidelines, the parental contribution shall be 
398.11  determined using a sliding fee scale established by the 
398.12  commissioner of human services which begins at one percent of 
398.13  adjusted gross income at 175 percent of federal poverty 
398.14  guidelines and increases to 7.5 percent of adjusted gross income 
398.15  for those with adjusted gross income up to 375 percent of 
398.16  federal poverty guidelines; 
398.17     (3) on if the amount of adjusted gross income over 150 is 
398.18  greater than 375 percent of federal poverty, and over $60,000 
398.19  but not over $75,000, 14 percent guidelines and less than 675 
398.20  percent of federal poverty guidelines, the parental contribution 
398.21  shall be 7.5 percent of adjusted gross income; and 
398.22     (4) on all if the adjusted gross income amounts over 150 is 
398.23  equal to or greater than 675 percent of federal poverty, and 
398.24  over $75,000, 15 percent guidelines and less than 975 percent of 
398.25  federal poverty guidelines, the parental contribution shall be 
398.26  ten percent of adjusted gross income; and 
398.27     (5) if the adjusted gross income is equal to or greater 
398.28  than 975 percent of federal poverty guidelines, the parental 
398.29  contribution shall be 12.5 percent of adjusted gross income. 
398.30     If the child lives with the parent, the parental 
398.31  contribution annual adjusted gross income is reduced by $200, 
398.32  except that the parent must pay the minimum monthly $25 fee 
398.33  under this paragraph $2,400 prior to calculating the parental 
398.34  contribution.  If the child resides in an institution specified 
398.35  in section 256B.35, the parent is responsible for the personal 
398.36  needs allowance specified under that section in addition to the 
399.1   parental contribution determined under this section.  The 
399.2   parental contribution is reduced by any amount required to be 
399.3   paid directly to the child pursuant to a court order, but only 
399.4   if actually paid. 
399.5      (c) The household size to be used in determining the amount 
399.6   of contribution under paragraph (b) includes natural and 
399.7   adoptive parents and their dependents under age 21, including 
399.8   the child receiving services.  Adjustments in the contribution 
399.9   amount due to annual changes in the federal poverty guidelines 
399.10  shall be implemented on the first day of July following 
399.11  publication of the changes. 
399.12     (d) For purposes of paragraph (b), "income" means the 
399.13  adjusted gross income of the natural or adoptive parents 
399.14  determined according to the previous year's federal tax form. 
399.15     (e) The contribution shall be explained in writing to the 
399.16  parents at the time eligibility for services is being 
399.17  determined.  The contribution shall be made on a monthly basis 
399.18  effective with the first month in which the child receives 
399.19  services.  Annually upon redetermination or at termination of 
399.20  eligibility, if the contribution exceeded the cost of services 
399.21  provided, the local agency or the state shall reimburse that 
399.22  excess amount to the parents, either by direct reimbursement if 
399.23  the parent is no longer required to pay a contribution, or by a 
399.24  reduction in or waiver of parental fees until the excess amount 
399.25  is exhausted. 
399.26     (f) The monthly contribution amount must be reviewed at 
399.27  least every 12 months; when there is a change in household size; 
399.28  and when there is a loss of or gain in income from one month to 
399.29  another in excess of ten percent.  The local agency shall mail a 
399.30  written notice 30 days in advance of the effective date of a 
399.31  change in the contribution amount.  A decrease in the 
399.32  contribution amount is effective in the month that the parent 
399.33  verifies a reduction in income or change in household size. 
399.34     (g) Parents of a minor child who do not live with each 
399.35  other shall each pay the contribution required under paragraph 
399.36  (a), except that a.  An amount equal to the annual court-ordered 
400.1   child support payment actually paid on behalf of the child 
400.2   receiving services shall be deducted from the contribution 
400.3   adjusted gross income of the parent making the payment prior to 
400.4   calculating the parental contribution under paragraph (b). 
400.5      (h) The contribution under paragraph (b) shall be increased 
400.6   by an additional five percent if the local agency determines 
400.7   that insurance coverage is available but not obtained for the 
400.8   child.  For purposes of this section, "available" means the 
400.9   insurance is a benefit of employment for a family member at an 
400.10  annual cost of no more than five percent of the family's annual 
400.11  income.  For purposes of this section, "insurance" means health 
400.12  and accident insurance coverage, enrollment in a nonprofit 
400.13  health service plan, health maintenance organization, 
400.14  self-insured plan, or preferred provider organization. 
400.15     Parents who have more than one child receiving services 
400.16  shall not be required to pay more than the amount for the child 
400.17  with the highest expenditures.  There shall be no resource 
400.18  contribution from the parents.  The parent shall not be required 
400.19  to pay a contribution in excess of the cost of the services 
400.20  provided to the child, not counting payments made to school 
400.21  districts for education-related services.  Notice of an increase 
400.22  in fee payment must be given at least 30 days before the 
400.23  increased fee is due.  
400.24     (i) The contribution under paragraph (b) shall be reduced 
400.25  by $300 per fiscal year if, in the 12 months prior to July 1: 
400.26     (1) the parent applied for insurance for the child; 
400.27     (2) the insurer denied insurance; 
400.28     (3) the parents submitted a complaint or appeal, in writing 
400.29  to the insurer, submitted a complaint or appeal, in writing, to 
400.30  the commissioner of health or the commissioner of commerce, or 
400.31  litigated the complaint or appeal; and 
400.32     (4) as a result of the dispute, the insurer reversed its 
400.33  decision and granted insurance. 
400.34     For purposes of this section, "insurance" has the meaning 
400.35  given in paragraph (h). 
400.36     A parent who has requested a reduction in the contribution 
401.1   amount under this paragraph shall submit proof in the form and 
401.2   manner prescribed by the commissioner or county agency, 
401.3   including, but not limited to, the insurer's denial of 
401.4   insurance, the written letter or complaint of the parents, court 
401.5   documents, and the written response of the insurer approving 
401.6   insurance.  The determinations of the commissioner or county 
401.7   agency under this paragraph are not rules subject to chapter 14. 
401.8      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
401.9      Sec. 6.  Minnesota Statutes 2002, section 253B.05, is 
401.10  amended by adding a subdivision to read: 
401.11     Subd. 5.  [DETOXIFICATION.] If a person is intoxicated in 
401.12  public and held under this section for detoxification, a 
401.13  treatment facility may release the person without providing 
401.14  notice under subdivision 3, paragraph (c), as soon as the 
401.15  treatment facility determines the person is no longer 
401.16  intoxicated.  Notice must be provided to the peace officer or 
401.17  health officer who transported the person, or the appropriate 
401.18  law enforcement agency, if the officer or agency requests 
401.19  notification. 
401.20     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
401.21  following final enactment. 
401.22     Sec. 7.  Minnesota Statutes 2002, section 256.012, is 
401.23  amended to read: 
401.24     256.012 [MINNESOTA MERIT SYSTEM.] 
401.25     Subdivision 1.  [MINNESOTA MERIT SYSTEM.] The commissioner 
401.26  of human services shall promulgate by rule personnel standards 
401.27  on a merit basis in accordance with federal standards for a 
401.28  merit system of personnel administration for all employees of 
401.29  county boards engaged in the administration of community social 
401.30  services or income maintenance programs, all employees of human 
401.31  services boards that have adopted the rules of the Minnesota 
401.32  merit system, and all employees of local social services 
401.33  agencies.  
401.34     Excluded from the rules are employees of institutions and 
401.35  hospitals under the jurisdiction of the aforementioned boards 
401.36  and agencies; employees of county personnel systems otherwise 
402.1   provided for by law that meet federal merit system requirements; 
402.2   duly appointed or elected members of the aforementioned boards 
402.3   and agencies; and the director of community social services and 
402.4   employees in positions that, upon the request of the appointing 
402.5   authority, the commissioner chooses to exempt, provided the 
402.6   exemption accords with the federal standards for a merit system 
402.7   of personnel administration.  
402.8      Subd. 2.  [PAYMENT FOR SERVICES PROVIDED.] (a) The cost of 
402.9   merit system operations shall be paid by counties and other 
402.10  entities that utilize merit system services.  Total costs shall 
402.11  be determined by the commissioner annually and must be set at a 
402.12  level that neither significantly overrecovers nor underrecovers 
402.13  the costs of providing the service.  The costs of merit system 
402.14  services shall be prorated among participating counties in 
402.15  accordance with an agreement between the commissioner and these 
402.16  counties.  Participating counties will be billed quarterly in 
402.17  advance and shall pay their share of the costs upon receipt of 
402.18  the billing. 
402.19     (b) This subdivision does not apply to counties with 
402.20  personnel systems otherwise provided for by law that meet 
402.21  federal merit system requirements.  A county that applies to 
402.22  withdraw from the merit system must notify the commissioner of 
402.23  the county's intent to develop its own personnel system.  This 
402.24  notice must be provided in writing by December 31 of the year 
402.25  preceding the year of final participation in the merit system.  
402.26  The county may withdraw once the commissioner has certified that 
402.27  its personnel system meets federal merit system requirements. 
402.28     (c) A county merit systems operations account is 
402.29  established in the special revenue fund.  Payments received by 
402.30  the commissioner for merit system costs must be deposited into 
402.31  the merit system operations account and must be used for the 
402.32  purpose of providing the services and administering the merit 
402.33  system. 
402.34     (d) County payment of merit system costs is effective July 
402.35  1, 2003; however, payment for the period from July 1, 2003, 
402.36  through December 31, 2003, shall be made no later than January 
403.1   31, 2004. 
403.2      Subd. 3.  [PARTICIPATING COUNTY CONSULTATION.] The 
403.3   commissioner shall ensure that participating counties are 
403.4   consulted regularly and offered the opportunity to provide input 
403.5   on the management of the merit system to ensure effective use of 
403.6   resources and to monitor system performance. 
403.7      Sec. 8.  [256.0451] [HEARING PROCEDURES.] 
403.8      Subdivision 1.  [SCOPE.] The requirements in this section 
403.9   apply to all fair hearings and appeals under section 256.045, 
403.10  subdivision 3, paragraph (a), clauses (1), (2), (3), (5), (6), 
403.11  and (7).  Except as provided in subdivisions 3 and 19, the 
403.12  requirements under this section apply to fair hearings and 
403.13  appeals under section 256.045, subdivision 3, paragraph (a), 
403.14  clauses (4), (8), and (9). 
403.15     The term "person" is used in this section to mean an 
403.16  individual who, on behalf of themselves or their household, is 
403.17  appealing or disputing or challenging an action, a decision, or 
403.18  a failure to act, by an agency in the human services system.  
403.19  When a person involved in a proceeding under this section is 
403.20  represented by an attorney or by an authorized representative, 
403.21  the term "person" also refers to the person's attorney or 
403.22  authorized representative.  Any notice sent to the person 
403.23  involved in the hearing must also be sent to the person's 
403.24  attorney or authorized representative. 
403.25     The term "agency" includes the county human services 
403.26  agency, the state human services agency, and, where applicable, 
403.27  any entity involved under a contract, subcontract, grant, or 
403.28  subgrant with the state agency or with a county agency, that 
403.29  provides or operates programs or services in which appeals are 
403.30  governed by section 256.045. 
403.31     Subd. 2.  [ACCESS TO FILES.] A person involved in a fair 
403.32  hearing appeal has the right of access to the person's complete 
403.33  case files and to examine all private welfare data on the person 
403.34  which has been generated, collected, stored, or disseminated by 
403.35  the agency.  A person involved in a fair hearing appeal has the 
403.36  right to a free copy of all documents in the case file involved 
404.1   in a fair hearing appeal.  "Case file" means the information, 
404.2   documents, and data, in whatever form, which have been 
404.3   generated, collected, stored, or disseminated by the agency in 
404.4   connection with the person and the program or service involved. 
404.5      Subd. 3.  [AGENCY APPEAL SUMMARY.] (a) Except in fair 
404.6   hearings and appeals under section 256.045, subdivision 3, 
404.7   paragraph (a), clauses (4), (8), and (9), the agency involved in 
404.8   an appeal must prepare a state agency appeal summary for each 
404.9   fair hearing appeal.  The state agency appeal summary shall be 
404.10  mailed or otherwise delivered to the person who is involved in 
404.11  the appeal at least three working days before the date of the 
404.12  hearing.  The state agency appeal summary must also be mailed or 
404.13  otherwise delivered to the department's appeals office at least 
404.14  three working days before the date of the fair hearing appeal. 
404.15     (b) In addition, the appeals referee shall confirm that the 
404.16  state agency appeal summary is mailed or otherwise delivered to 
404.17  the person involved in the appeal as required under paragraph 
404.18  (a).  The person involved in the fair hearing should be 
404.19  provided, through the state agency appeal summary or other 
404.20  reasonable methods, appropriate information about the procedures 
404.21  for the fair hearing and an adequate opportunity to prepare.  
404.22  These requirements apply equally to the state agency or an 
404.23  entity under contract when involved in the appeal. 
404.24     (c) The contents of the state agency appeal summary must be 
404.25  adequate to inform the person involved in the appeal of the 
404.26  evidence on which the agency relies and the legal basis for the 
404.27  agency's action or determination. 
404.28     Subd. 4.  [ENFORCING ACCESS TO FILES.] A person involved in 
404.29  a fair hearing appeal may enforce the right of access to data 
404.30  and copies of the case file by making a request to the appeals 
404.31  referee.  The appeals referee will make an appropriate order 
404.32  enforcing the person's rights under the Minnesota Government 
404.33  Data Practices Act, including but not limited to, ordering 
404.34  access to files, data, and documents; continuing a hearing to 
404.35  allow adequate time for access to data; or prohibiting use by 
404.36  the agency of files, data, or documents which have been 
405.1   generated, collected, stored, or disseminated without compliance 
405.2   with the Minnesota Government Data Practices Act and which have 
405.3   not been provided to the person involved in the appeal. 
405.4      Subd. 5.  [PREHEARING CONFERENCES.] (a) The appeals referee 
405.5   prior to a fair hearing appeal may hold a prehearing conference 
405.6   to further the interests of justice or efficiency and must 
405.7   include the person involved in the appeal.  A person involved in 
405.8   a fair hearing appeal or the agency may request a prehearing 
405.9   conference.  The prehearing conference may be conducted by 
405.10  telephone, in person, or in writing.  The prehearing conference 
405.11  may address the following: 
405.12     (1) disputes regarding access to files, evidence, 
405.13  subpoenas, or testimony; 
405.14     (2) the time required for the hearing or any need for 
405.15  expedited procedures or decision; 
405.16     (3) identification or clarification of legal or other 
405.17  issues that may arise at the hearing; 
405.18     (4) identification of and possible agreement to factual 
405.19  issues; and 
405.20     (5) scheduling and any other matter which will aid in the 
405.21  proper and fair functioning of the hearing. 
405.22     (b) The appeals referee shall make a record or otherwise 
405.23  contemporaneously summarize the prehearing conference in 
405.24  writing, which shall be sent to both the person involved in the 
405.25  hearing, the person's attorney or authorized representative, and 
405.26  the agency. 
405.27     Subd. 6.  [APPEAL REQUEST FOR EMERGENCY ASSISTANCE OR 
405.28  URGENT MATTER.] (a) When an appeal involves an application for 
405.29  emergency assistance, the agency involved shall mail or 
405.30  otherwise deliver the state agency appeal summary to the 
405.31  department's appeals office within two working days of receiving 
405.32  the request for an appeal.  A person may also request that a 
405.33  fair hearing be held on an emergency basis when the issue 
405.34  requires an immediate resolution.  The appeals referee shall 
405.35  schedule the fair hearing on the earliest available date 
405.36  according to the urgency of the issue involved.  Issuance of the 
406.1   recommended decision after an emergency hearing shall be 
406.2   expedited. 
406.3      (b) The commissioner shall issue a written decision within 
406.4   five working days of receiving the recommended decision, shall 
406.5   immediately inform the parties of the outcome by telephone, and 
406.6   shall mail the decision no later than two working days following 
406.7   the date of the decision. 
406.8      Subd. 7.  [CONTINUANCE, RESCHEDULING, OR ADJOURNING A 
406.9   HEARING.] (a) A person involved in a fair hearing, or the 
406.10  agency, may request a continuance, a rescheduling, or an 
406.11  adjournment of a hearing for a reasonable period of time.  The 
406.12  grounds for granting a request for a continuance, a 
406.13  rescheduling, or adjournment of a hearing include, but are not 
406.14  limited to, the following: 
406.15     (1) to reasonably accommodate the appearance of a witness; 
406.16     (2) to ensure that the person has adequate opportunity for 
406.17  preparation and for presentation of evidence and argument; 
406.18     (3) to ensure that the person or the agency has adequate 
406.19  opportunity to review, evaluate, and respond to new evidence, or 
406.20  where appropriate, to require that the person or agency review, 
406.21  evaluate, and respond to new evidence; 
406.22     (4) to permit the person involved and the agency to 
406.23  negotiate toward resolution of some or all of the issues where 
406.24  both agree that additional time is needed; 
406.25     (5) to permit the agency to reconsider a previous action or 
406.26  determination; 
406.27     (6) to permit or to require the performance of actions not 
406.28  previously taken; and 
406.29     (7) to provide additional time or to permit or require 
406.30  additional activity by the person or agency as the interests of 
406.31  fairness may require. 
406.32     (b) Requests for continuances or for rescheduling may be 
406.33  made orally or in writing.  The person or agency requesting the 
406.34  continuance or rescheduling must first make reasonable efforts 
406.35  to contact the other participants in the hearing or their 
406.36  representatives, and seek to obtain an agreement on the 
407.1   request.  Requests for continuance or rescheduling should be 
407.2   made no later than three working days before the scheduled date 
407.3   of the hearing, unless there is a good cause as specified in 
407.4   subdivision 13.  Granting a continuance or rescheduling may be 
407.5   conditioned upon a waiver by the requester of applicable time 
407.6   limits, but should not cause unreasonable delay. 
407.7      Subd. 8.  [SUBPOENAS.] A person involved in a fair hearing 
407.8   or the agency may request a subpoena for a witness, for 
407.9   evidence, or for both.  A reasonable number of subpoenas shall 
407.10  be issued to require the attendance and the testimony of 
407.11  witnesses, and the production of evidence relating to any issue 
407.12  of fact in the appeal hearing.  The request for a subpoena must 
407.13  show a need for the subpoena and the general relevance to the 
407.14  issues involved.  The subpoena shall be issued in the name of 
407.15  the department and shall be served and enforced as provided in 
407.16  section 357.22 and the Minnesota Rules of Civil Procedure. 
407.17     An individual or entity served with a subpoena may petition 
407.18  the appeals referee in writing to vacate or modify a subpoena.  
407.19  The appeals referee shall resolve such a petition in a 
407.20  prehearing conference involving all parties and shall make a 
407.21  written decision.  A subpoena may be vacated or modified if the 
407.22  appeals referee determines that the testimony or evidence sought 
407.23  does not relate with reasonable directness to the issues of the 
407.24  fair hearing appeal; that the subpoena is unreasonable, over 
407.25  broad, or oppressive; that the evidence sought is repetitious or 
407.26  cumulative; or that the subpoena has not been served reasonably 
407.27  in advance of the time when the appeal hearing will be held. 
407.28     Subd. 9.  [NO EX PARTE CONTACT.] The appeals referee shall 
407.29  not have ex parte contact on substantive issues with the agency 
407.30  or with any person or witness in a fair hearing appeal.  No 
407.31  employee of the department or agency shall review, interfere 
407.32  with, change, or attempt to influence the recommended decision 
407.33  of the appeals referee in any fair hearing appeal, except 
407.34  through the procedure allowed in subdivision 18.  The 
407.35  limitations in this subdivision do not affect the commissioner's 
407.36  authority to review or reconsider decisions or make final 
408.1   decisions. 
408.2      Subd. 10.  [TELEPHONE OR FACE-TO-FACE HEARING.] A fair 
408.3   hearing appeal may be conducted by telephone, by other 
408.4   electronic media, or by an in-person, face-to-face hearing.  At 
408.5   the request of the person involved in a fair hearing appeal or 
408.6   their representative, a face-to-face hearing shall be conducted 
408.7   with all participants personally present before the appeals 
408.8   referee. 
408.9      Subd. 11.  [HEARING FACILITIES AND EQUIPMENT.] The appeals 
408.10  referee shall conduct the hearing in the county where the person 
408.11  involved resides, unless an alternate location is mutually 
408.12  agreed upon before the hearing, or unless the person has agreed 
408.13  to a hearing by telephone.  Hearings under section 256.045, 
408.14  subdivision 3, paragraph (a), clauses (4), (8), and (9), must be 
408.15  conducted in the county where the determination was made, unless 
408.16  an alternate location is mutually agreed upon before the 
408.17  hearing.  The hearing room shall be of sufficient size and 
408.18  layout to adequately accommodate both the number of individuals 
408.19  participating in the hearing and any identified special needs of 
408.20  any individual participating in the hearing.  The appeals 
408.21  referee shall ensure that all communication and recording 
408.22  equipment that is necessary to conduct the hearing and to create 
408.23  an adequate record is present and functioning properly.  If any 
408.24  necessary communication or recording equipment fails or ceases 
408.25  to operate effectively, the appeals referee shall take any steps 
408.26  necessary, including stopping or adjourning the hearing, until 
408.27  the necessary equipment is present and functioning properly.  
408.28  All reasonable efforts shall be undertaken to prevent and avoid 
408.29  any delay in the hearing process caused by defective 
408.30  communication or recording equipment. 
408.31     Subd. 12.  [INTERPRETER AND TRANSLATION SERVICES.] The 
408.32  appeals referee has a duty to inquire and to determine whether 
408.33  any participant in the hearing needs the services of an 
408.34  interpreter or translator in order to participate in or to 
408.35  understand the hearing process.  Necessary interpreter or 
408.36  translation services must be provided at no charge to the person 
409.1   involved in the hearing.  If it appears that interpreter or 
409.2   translation services are needed but are not available for the 
409.3   scheduled hearing, the appeals referee shall continue or 
409.4   postpone the hearing until appropriate services can be provided. 
409.5      Subd. 13.  [FAILURE TO APPEAR; GOOD CAUSE.] If a person 
409.6   involved in a fair hearing appeal fails to appear at the 
409.7   hearing, the appeals referee may dismiss the appeal.  The person 
409.8   may reopen the appeal if within ten working days the person 
409.9   submits information to the appeals referee to show good cause 
409.10  for not appearing.  Good cause can be shown when there is: 
409.11     (1) a death or serious illness in the person's family; 
409.12     (2) a personal injury or illness which reasonably prevents 
409.13  the person from attending the hearing; 
409.14     (3) an emergency, crisis, or unforeseen event which 
409.15  reasonably prevents the person from attending the hearing; 
409.16     (4) an obligation or responsibility of the person which a 
409.17  reasonable person, in the conduct of one's affairs, could 
409.18  reasonably determine takes precedence over attending the 
409.19  hearing; 
409.20     (5) lack of or failure to receive timely notice of the 
409.21  hearing in the preferred language of the person involved in the 
409.22  hearing; and 
409.23     (6) excusable neglect, excusable inadvertence, excusable 
409.24  mistake, or other good cause as determined by the appeals 
409.25  referee. 
409.26     Subd. 14.  [COMMENCEMENT OF HEARING.] The appeals referee 
409.27  shall begin each hearing by describing the process to be 
409.28  followed in the hearing, including the swearing-in of witnesses, 
409.29  how testimony and evidence are presented, the order of examining 
409.30  and cross-examining witnesses, and the opportunity for an 
409.31  opening statement and a closing statement.  The appeals referee 
409.32  shall identify for the participants the issues to be addressed 
409.33  at the hearing and shall explain to the participants the burden 
409.34  of proof which applies to the person involved and the agency.  
409.35  The appeals referee shall confirm, prior to proceeding with the 
409.36  hearing, that the state agency appeal summary, if required under 
410.1   subdivision 3, has been properly completed and provided to the 
410.2   person involved in the hearing, and that the person has been 
410.3   provided documents and an opportunity to review the case file, 
410.4   as provided in this section. 
410.5      Subd. 15.  [CONDUCT OF THE HEARING.] The appeals referee 
410.6   shall act in a fair and impartial manner at all times.  At the 
410.7   beginning of the hearing the agency must designate one person as 
410.8   their representative who shall be responsible for presenting the 
410.9   agency's evidence and questioning any witnesses.  The appeals 
410.10  referee shall make sure that the person and the agency are 
410.11  provided sufficient time to present testimony and evidence, to 
410.12  confront and cross-examine all adverse witnesses, and to make 
410.13  any relevant statement at the hearing.  The appeals referee 
410.14  shall make reasonable efforts to explain the hearing process to 
410.15  persons who are not represented, and shall ensure that the 
410.16  hearing is conducted fairly and efficiently.  Upon the 
410.17  reasonable request of the person or the agency involved, the 
410.18  appeals referee may direct witnesses to remain outside the 
410.19  hearing room, except during their individual testimony.  The 
410.20  appeals referee shall not terminate the hearing before affording 
410.21  the person and the agency a complete opportunity to submit all 
410.22  admissible evidence, and reasonable opportunity for oral or 
410.23  written statement.  When a hearing extends beyond the time which 
410.24  was anticipated, the hearing shall be rescheduled or continued 
410.25  from day-to-day until completion.  Hearings that have been 
410.26  continued shall be timely scheduled to minimize delay in the 
410.27  disposition of the appeal. 
410.28     Subd. 16.  [SCOPE OF ISSUES ADDRESSED AT THE HEARING.] The 
410.29  hearing shall address the correctness and legality of the 
410.30  agency's action and shall not be limited simply to a review of 
410.31  the propriety of the agency's action.  The person involved may 
410.32  raise and present evidence on all legal claims or defenses 
410.33  arising under state or federal law as a basis for appealing or 
410.34  disputing an agency action, but not constitutional claims beyond 
410.35  the jurisdiction of the fair hearing.  The appeals referee may 
410.36  take official notice of adjudicative facts. 
411.1      Subd. 17.  [BURDEN OF PERSUASION.] The burden of persuasion 
411.2   is governed by specific state or federal law and regulations 
411.3   that apply to the subject of the hearing.  If there is no 
411.4   specific law, then the participant in the hearing who asserts 
411.5   the truth of a claim is under the burden to persuade the appeals 
411.6   referee that the claim is true. 
411.7      Subd. 18.  [INVITING COMMENT BY DEPARTMENT.] The appeals 
411.8   referee or the commissioner may determine that a written comment 
411.9   by the department about the policy implications of a specific 
411.10  legal issue could help resolve a pending appeal.  Such a written 
411.11  policy comment from the department shall be obtained only by a 
411.12  written request that is also sent to the person involved and to 
411.13  the agency or its representative.  When such a written comment 
411.14  is received, both the person involved in the hearing and the 
411.15  agency shall have adequate opportunity to review, evaluate, and 
411.16  respond to the written comment, including submission of 
411.17  additional testimony or evidence, and cross-examination 
411.18  concerning the written comment. 
411.19     Subd. 19.  [DEVELOPING THE RECORD.] The appeals referee 
411.20  shall accept all evidence, except evidence privileged by law, 
411.21  that is commonly accepted by reasonable people in the conduct of 
411.22  their affairs as having probative value on the issues to be 
411.23  addressed at the hearing.  Except in fair hearings and appeals 
411.24  under section 256.045, subdivision 3, paragraph (a), clauses 
411.25  (4), (8), and (9), in cases involving medical issues such as a 
411.26  diagnosis, a physician's report, or a review team's decision, 
411.27  the appeals referee shall consider whether it is necessary to 
411.28  have a medical assessment other than that of the individual 
411.29  making the original decision.  When necessary, the appeals 
411.30  referee shall require an additional assessment be obtained at 
411.31  agency expense and made part of the hearing record.  The appeals 
411.32  referee shall ensure for all cases that the record is 
411.33  sufficiently complete to make a fair and accurate decision.  
411.34     Subd. 20.  [UNREPRESENTED PERSONS.] In cases involving 
411.35  unrepresented persons, the appeals referee shall take 
411.36  appropriate steps to identify and develop in the hearing 
412.1   relevant facts necessary for making an informed and fair 
412.2   decision.  These steps may include, but are not limited to, 
412.3   asking questions of witnesses, and referring the person to a 
412.4   legal services office.  An unrepresented person shall be 
412.5   provided an adequate opportunity to respond to testimony or 
412.6   other evidence presented by the agency at the hearing.  The 
412.7   appeals referee shall ensure that an unrepresented person has a 
412.8   full and reasonable opportunity at the hearing to establish a 
412.9   record for appeal. 
412.10     Subd. 21.  [CLOSING OF THE RECORD.] The agency must present 
412.11  its evidence prior to or at the hearing.  The agency shall not 
412.12  be permitted to submit evidence after the hearing except by 
412.13  agreement at the hearing between the person involved, the 
412.14  agency, and the appeals referee.  If evidence is submitted after 
412.15  the hearing, based on such an agreement, the person involved and 
412.16  the agency must be allowed sufficient opportunity to respond to 
412.17  the evidence.  When necessary, the record shall remain open to 
412.18  permit a person to submit additional evidence on the issues 
412.19  presented at the hearing. 
412.20     Subd. 22.  [DECISIONS.] A timely, written decision must be 
412.21  issued in every appeal.  Each decision must contain a clear 
412.22  ruling on the issues presented in the appeal hearing, and should 
412.23  contain a ruling only on questions directly presented by the 
412.24  appeal and the arguments raised in the appeal. 
412.25     (a) [TIMELINESS.] A written decision must be issued within 
412.26  90 days of the date the person involved requested the appeal 
412.27  unless a shorter time is required by law.  An additional 30 days 
412.28  is provided in those cases where the commissioner refuses to 
412.29  accept the recommended decision. 
412.30     (b) [CONTENTS OF HEARING DECISION.] The decision must 
412.31  contain both findings of fact and conclusions of law, clearly 
412.32  separated and identified.  The findings of fact must be based on 
412.33  the entire record.  Each finding of fact made by the appeals 
412.34  referee shall be supported by a preponderance of the evidence 
412.35  unless a different standard is required under the regulations of 
412.36  a particular program.  The "preponderance of the evidence" 
413.1   means, in light of the record as a whole, the evidence leads the 
413.2   appeals referee to believe that the finding of fact is more 
413.3   likely to be true than not true.  The legal claims or arguments 
413.4   of a participant do not constitute either a finding of fact or a 
413.5   conclusion of law, except to the extent the appeals referee 
413.6   adopts an argument as a finding of fact or conclusion of law. 
413.7      The decision shall contain at least the following: 
413.8      (1) a listing of the date and place of the hearing and the 
413.9   participants at the hearing; 
413.10     (2) a clear and precise statement of the issues, including 
413.11  the dispute under consideration and the specific points which 
413.12  must be resolved in order to decide the case; 
413.13     (3) a listing of the material, including exhibits, records, 
413.14  reports, placed into evidence at the hearing, and upon which the 
413.15  hearing decision is based; 
413.16     (4) the findings of fact based upon the entire hearing 
413.17  record.  The findings of fact must be adequate to inform the 
413.18  participants and any interested person in the public of the 
413.19  basis of the decision.  If the evidence is in conflict on an 
413.20  issue which must be resolved, the findings of fact must state 
413.21  the reasoning used in resolving the conflict; 
413.22     (5) conclusions of law that address the legal authority for 
413.23  the hearing and the ruling, and which give appropriate attention 
413.24  to the claims of the participants to the hearing; 
413.25     (6) a clear and precise statement of the decision made 
413.26  resolving the dispute under consideration in the hearing; and 
413.27     (7) written notice of the right to appeal to district court 
413.28  or to request reconsideration, and of the actions required and 
413.29  the time limits for taking appropriate action to appeal to 
413.30  district court or to request a reconsideration. 
413.31     (c) [NO INDEPENDENT INVESTIGATION.] The appeals referee 
413.32  shall not independently investigate facts or otherwise rely on 
413.33  information not presented at the hearing.  The appeals referee 
413.34  may not contact other agency personnel, except as provided in 
413.35  subdivision 18.  The appeals referee's recommended decision must 
413.36  be based exclusively on the testimony and evidence presented at 
414.1   the hearing, and legal arguments presented, and the appeals 
414.2   referee's research and knowledge of the law. 
414.3      (d) [RECOMMENDED DECISION.] The commissioner will review 
414.4   the recommended decision and accept or refuse to accept the 
414.5   decision according to section 256.045, subdivision 5. 
414.6      Subd. 23.  [REFUSAL TO ACCEPT RECOMMENDED ORDERS.] (a) If 
414.7   the commissioner refuses to accept the recommended order from 
414.8   the appeals referee, the person involved, the person's attorney 
414.9   or authorized representative, and the agency shall be sent a 
414.10  copy of the recommended order, a detailed explanation of the 
414.11  basis for refusing to accept the recommended order, and the 
414.12  proposed modified order. 
414.13     (b) The person involved and the agency shall have at least 
414.14  ten business days to respond to the proposed modification of the 
414.15  recommended order.  The person involved and the agency may 
414.16  submit a legal argument concerning the proposed modification, 
414.17  and may propose to submit additional evidence that relates to 
414.18  the proposed modified order. 
414.19     Subd. 24.  [RECONSIDERATION.] Reconsideration may be 
414.20  requested within 30 days of the date of the commissioner's final 
414.21  order.  If reconsideration is requested, the other participants 
414.22  in the appeal shall be informed of the request.  The person 
414.23  seeking reconsideration has the burden to demonstrate why the 
414.24  matter should be reconsidered.  The request for reconsideration 
414.25  may include legal argument and may include proposed additional 
414.26  evidence supporting the request.  The other participants shall 
414.27  be sent a copy of all material submitted in support of the 
414.28  request for reconsideration and must be given ten days to 
414.29  respond. 
414.30     (a) [FINDINGS OF FACT.] When the requesting party raises a 
414.31  question as to the appropriateness of the findings of fact, the 
414.32  commissioner shall review the entire record. 
414.33     (b) [CONCLUSIONS OF LAW.] When the requesting party 
414.34  questions the appropriateness of a conclusion of law, the 
414.35  commissioner shall consider the recommended decision, the 
414.36  decision under reconsideration, and the material submitted in 
415.1   connection with the reconsideration.  The commissioner shall 
415.2   review the remaining record as necessary to issue a reconsidered 
415.3   decision. 
415.4      (c) [WRITTEN DECISION.] The commissioner shall issue a 
415.5   written decision on reconsideration in a timely fashion.  The 
415.6   decision must clearly inform the parties that this constitutes 
415.7   the final administrative decision, advise the participants of 
415.8   the right to seek judicial review, and the deadline for doing so.
415.9      Subd. 25.  [ACCESS TO APPEAL DECISIONS.] Appeal decisions 
415.10  must be maintained in a manner so that the public has ready 
415.11  access to previous decisions on particular topics, subject to 
415.12  appropriate procedures for safeguarding names, personal 
415.13  identifying information, and other private data on the 
415.14  individual persons involved in the appeal. 
415.15     Sec. 9.  Minnesota Statutes 2002, section 256B.092, 
415.16  subdivision 5, is amended to read: 
415.17     Subd. 5.  [FEDERAL WAIVERS.] (a) The commissioner shall 
415.18  apply for any federal waivers necessary to secure, to the extent 
415.19  allowed by law, federal financial participation under United 
415.20  States Code, title 42, sections 1396 et seq., as amended, for 
415.21  the provision of services to persons who, in the absence of the 
415.22  services, would need the level of care provided in a regional 
415.23  treatment center or a community intermediate care facility for 
415.24  persons with mental retardation or related conditions.  The 
415.25  commissioner may seek amendments to the waivers or apply for 
415.26  additional waivers under United States Code, title 42, sections 
415.27  1396 et seq., as amended, to contain costs.  The commissioner 
415.28  shall ensure that payment for the cost of providing home and 
415.29  community-based alternative services under the federal waiver 
415.30  plan shall not exceed the cost of intermediate care services 
415.31  including day training and habilitation services that would have 
415.32  been provided without the waivered services.  
415.33     The commissioner shall seek an amendment to the 1915c home 
415.34  and community-based waiver to allow properly licensed adult 
415.35  foster care homes to provide residential services to up to five 
415.36  individuals with mental retardation or a related condition.  If 
416.1   the amendment to the waiver is approved, adult foster care 
416.2   providers that can accommodate five individuals shall increase 
416.3   their capacity to five beds, provided the providers continue to 
416.4   meet all applicable licensing requirements. 
416.5      (b) The commissioner, in administering home and 
416.6   community-based waivers for persons with mental retardation and 
416.7   related conditions, shall ensure that day services for eligible 
416.8   persons are not provided by the person's residential service 
416.9   provider, unless the person or the person's legal representative 
416.10  is offered a choice of providers and agrees in writing to 
416.11  provision of day services by the residential service provider.  
416.12  The individual service plan for individuals who choose to have 
416.13  their residential service provider provide their day services 
416.14  must describe how health, safety, and protection needs will be 
416.15  met by frequent and regular contact with persons other than the 
416.16  residential service provider. 
416.17     Sec. 10.  Minnesota Statutes 2002, section 256B.092, is 
416.18  amended by adding a subdivision to read: 
416.19     Subd. 5a.  [INCREASING ADULT FOSTER CARE CAPACITY TO SERVE 
416.20  FIVE PERSONS.] (a) When an adult foster care provider increases 
416.21  the capacity of an existing home licensed to serve four persons 
416.22  to serve a fifth person under this section, the county agency 
416.23  shall reduce the contracted per diem cost for room and board and 
416.24  the mental retardation or a related condition waiver services of 
416.25  the existing foster care home by an average of 14 percent for 
416.26  all individuals living in that home.  A county agency may 
416.27  average the required per diem rate reductions across several 
416.28  adult foster care homes that expand capacity under this section, 
416.29  to achieve the necessary overall per diem reduction. 
416.30     (b) Following the contract changes in paragraph (a), the 
416.31  commissioner shall adjust: 
416.32     (1) individual county allocations for mental retardation or 
416.33  a related condition waivered services by the amount of savings 
416.34  that results from the changes made for mental retardation or a 
416.35  related condition waiver recipients for whom the county is 
416.36  financially responsible; and 
417.1      (2) group residential housing rate payments to the adult 
417.2   foster home by the amount of savings that results from the 
417.3   changes made. 
417.4      (c) Effective July 1, 2003, when a new five-person adult 
417.5   foster care home is licensed under this section, county agencies 
417.6   shall not establish group residential housing room and board 
417.7   rates and mental retardation or a related condition waiver 
417.8   service rates for the new home that exceed 86 percent of the 
417.9   average per diem room and board and mental retardation or a 
417.10  related condition waiver services costs of four-person homes 
417.11  serving persons with comparable needs and in the same geographic 
417.12  area.  A county agency developing more than one new five-person 
417.13  adult foster care home may average the required per diem rates 
417.14  across the homes to achieve the necessary overall per diem 
417.15  reductions. 
417.16     (d) The commissioner shall reduce the individual county 
417.17  allocations for mental retardation or a related condition 
417.18  waivered services by the savings resulting from the per diem 
417.19  limits on adult foster care recipients for whom the county is 
417.20  financially responsible, and shall limit the group residential 
417.21  housing rate for a new five-person adult foster care home. 
417.22     Sec. 11.  Minnesota Statutes 2002, section 257.0769, is 
417.23  amended to read: 
417.24     257.0769 [FUNDING FOR THE OMBUDSPERSON PROGRAM.] 
417.25     Subdivision 1.  [APPROPRIATIONS.] (a) Money is appropriated 
417.26  from the special fund authorized by section 256.01, subdivision 
417.27  2, clause (15), to the Indian affairs council for the purposes 
417.28  of sections 257.0755 to 257.0768. 
417.29     (b) Money is appropriated from the special fund authorized 
417.30  by section 256.01, subdivision 2, clause (15), to the council on 
417.31  affairs of Chicano/Latino people for the purposes of sections 
417.32  257.0755 to 257.0768. 
417.33     (c) Money is appropriated from the special fund authorized 
417.34  by section 256.01, subdivision 2, clause (15), to the Council of 
417.35  Black Minnesotans for the purposes of sections 257.0755 to 
417.36  257.0768. 
418.1      (d) Money is appropriated from the special fund authorized 
418.2   by section 256.01, subdivision 2, clause (15), to the Council on 
418.3   Asian-Pacific Minnesotans for the purposes of sections 257.0755 
418.4   to 257.0768. 
418.5      Subd. 2.  [TITLE IV-E REIMBURSEMENT.] The commissioner 
418.6   shall obtain federal title IV-E financial participation for 
418.7   eligible activity by the ombudsperson for families under section 
418.8   257.0755.  The ombudsperson for families shall maintain and 
418.9   transmit to the department of human services documentation that 
418.10  is necessary in order to obtain federal funds. 
418.11     Sec. 12.  Minnesota Statutes 2002, section 259.21, 
418.12  subdivision 6, is amended to read: 
418.13     Subd. 6.  [AGENCY.] "Agency" means an organization or 
418.14  department of government designated or authorized by law to 
418.15  place children for adoption or any person, group of persons, 
418.16  organization, association or society licensed or certified by 
418.17  the commissioner of human services to place children for 
418.18  adoption, including a Minnesota federally recognized tribe.  
418.19     Sec. 13.  Minnesota Statutes 2002, section 259.67, 
418.20  subdivision 7, is amended to read: 
418.21     Subd. 7.  [REIMBURSEMENT OF COSTS.] (a) Subject to rules of 
418.22  the commissioner, and the provisions of this subdivision a 
418.23  child-placing agency licensed in Minnesota or any other state, 
418.24  or local or tribal social services agency shall receive a 
418.25  reimbursement from the commissioner equal to 100 percent of the 
418.26  reasonable and appropriate cost of providing adoption services 
418.27  for a child certified as eligible for adoption assistance under 
418.28  subdivision 4.  Such assistance may include adoptive family 
418.29  recruitment, counseling, and special training when needed.  A 
418.30  child-placing agency licensed in Minnesota or any other state 
418.31  shall receive reimbursement for adoption services it purchases 
418.32  for or directly provides to an eligible child.  A local or 
418.33  tribal social services agency shall receive such reimbursement 
418.34  only for adoption services it purchases for an eligible child. 
418.35     (b) A child-placing agency licensed in Minnesota or any 
418.36  other state or local or tribal social services agency seeking 
419.1   reimbursement under this subdivision shall enter into a 
419.2   reimbursement agreement with the commissioner before providing 
419.3   adoption services for which reimbursement is sought.  No 
419.4   reimbursement under this subdivision shall be made to an agency 
419.5   for services provided prior to entering a reimbursement 
419.6   agreement.  Separate reimbursement agreements shall be made for 
419.7   each child and separate records shall be kept on each child for 
419.8   whom a reimbursement agreement is made.  Funds encumbered and 
419.9   obligated under such an agreement for the child remain available 
419.10  until the terms of the agreement are fulfilled or the agreement 
419.11  is terminated. 
419.12     (c) When a local or tribal social services agency uses a 
419.13  purchase of service agreement to provide services reimbursable 
419.14  under a reimbursement agreement, the commissioner may make 
419.15  reimbursement payments directly to the agency providing the 
419.16  service if direct reimbursement is specified by the purchase of 
419.17  service agreement, and if the request for reimbursement is 
419.18  submitted by the local or tribal social services agency along 
419.19  with a verification that the service was provided.  
419.20     Sec. 14.  Minnesota Statutes 2002, section 393.07, 
419.21  subdivision 5, is amended to read: 
419.22     Subd. 5.  [COMPLIANCE WITH FEDERAL SOCIAL SECURITY ACT; 
419.23  MERIT SYSTEM.] The commissioner of human services shall have 
419.24  authority to require such methods of administration as are 
419.25  necessary for compliance with requirements of the federal Social 
419.26  Security Act, as amended, and for the proper and efficient 
419.27  operation of all welfare programs.  This authority to require 
419.28  methods of administration includes methods relating to the 
419.29  establishment and maintenance of personnel standards on a merit 
419.30  basis as concerns all employees of local social services 
419.31  agencies except those employed in an institution, sanitarium, or 
419.32  hospital.  The commissioner of human services shall exercise no 
419.33  authority with respect to the selection, tenure of office, and 
419.34  compensation of any individual employed in accordance with such 
419.35  methods.  The adoption of methods relating to the establishment 
419.36  and maintenance of personnel standards on a merit basis of all 
420.1   such employees of the local social services agencies and the 
420.2   examination thereof, and the administration thereof shall be 
420.3   directed and controlled exclusively by the commissioner of human 
420.4   services. 
420.5      Notwithstanding the provisions of any other law to the 
420.6   contrary, every employee of every local social services agency 
420.7   who occupies a position which requires as prerequisite to 
420.8   eligibility therefor graduation from an accredited four year 
420.9   college or a certificate of registration as a registered nurse 
420.10  under section 148.231, must be employed in such position under 
420.11  the merit system established under authority of this 
420.12  subdivision.  Every such employee now employed by a local social 
420.13  services agency and who is not under said merit system is 
420.14  transferred, as of January 1, 1962, to a position of comparable 
420.15  classification in the merit system with the same status therein 
420.16  as the employee had in the county of employment prior thereto 
420.17  and every such employee shall be subject to and have the benefit 
420.18  of the merit system, including seniority within the local social 
420.19  services agency, as though the employee had served thereunder 
420.20  from the date of entry into the service of the local social 
420.21  services agency. 
420.22     By March 1, 1996, the commissioner of human services shall 
420.23  report to the chair of the senate health care and family 
420.24  services finance division and the chair of the house health and 
420.25  human services finance division on options for the delivery of 
420.26  merit-based employment services by entities other than the 
420.27  department of human services in order to reduce the 
420.28  administrative costs to the state while maintaining compliance 
420.29  with applicable federal regulations. 
420.30     Sec. 15.  [FEDERAL GRANTS TO MAINTAIN INDEPENDENCE AND 
420.31  EMPLOYMENT.] 
420.32     (a) The commissioner of human services shall seek federal 
420.33  funding to participate in grant activities authorized under 
420.34  Public Law 106-170, the Ticket to Work and Work Incentives 
420.35  Improvement Act of 1999.  The purpose of the federal grant funds 
420.36  are to establish: 
421.1      (1) a demonstration project to improve the availability of 
421.2   health care services and benefits to workers with potentially 
421.3   severe physical or mental impairments that are likely to lead to 
421.4   disability without access to Medicaid services; and 
421.5      (2) a comprehensive initiative to remove employment 
421.6   barriers that includes linkages with non-Medicaid programs, 
421.7   including those administered by the Social Security 
421.8   Administration and the Department of Labor. 
421.9      (b) The state's proposal for a demonstration project in 
421.10  paragraph (a), clause (1), shall focus on assisting workers with:
421.11     (1) a serious mental illness as defined by the federal 
421.12  Center for Mental Health Services; 
421.13     (2) concurrent mental health and chemical dependency 
421.14  conditions; and 
421.15     (3) young adults up to the age of 24 who have a physical or 
421.16  mental impairment that is severe and will potentially lead to a 
421.17  determination of disability by the Social Security 
421.18  Administration or state medical review team. 
421.19     (c) The commissioner is authorized to take the actions 
421.20  necessary to design and implement the demonstration project in 
421.21  paragraph (a), clause (1), that include: 
421.22     (1) establishing work-related requirements for 
421.23  participation in the demonstration project; 
421.24     (2) working with stakeholders to establish methods that 
421.25  identify the population that will be served in the demonstration 
421.26  project; 
421.27     (3) seeking funding for activities to design, implement, 
421.28  and evaluate the demonstration project; 
421.29     (4) taking necessary administrative actions to implement 
421.30  the demonstration project by July 1, 2004, or within 180 days of 
421.31  receiving formal notice from the Centers for Medicare and 
421.32  Medicaid Services that a grant has been awarded; 
421.33     (5) establishing limits on income and resources; 
421.34     (6) establishing a method to coordinate health care 
421.35  benefits and payments with other coverage that is available to 
421.36  the participants; 
422.1      (7) establishing premiums based on guidelines that are 
422.2   consistent with those found in Minnesota Statutes, section 
422.3   256B.057, subdivision 9, for employed persons with disabilities; 
422.4      (8) notifying local agencies of potentially eligible 
422.5   individuals in accordance with Minnesota Statutes, section 
422.6   256B.19, subdivision 2c; and 
422.7      (9) limiting the caseload of qualifying individuals 
422.8   participating in the demonstration project. 
422.9      (d) The state's proposal for the comprehensive employment 
422.10  initiative in paragraph (a), clause (2), shall focus on: 
422.11     (1) infrastructure development that creates incentives for 
422.12  greater work effort and participation by people with 
422.13  disabilities or workers with severe physical or mental 
422.14  impairments; 
422.15     (2) consumer access to information and benefit assistance 
422.16  that enables the person to maximize employment and career 
422.17  advancement potential; 
422.18     (3) improved consumer access to essential assistance and 
422.19  support; 
422.20     (4) enhanced linkages between state and federal agencies to 
422.21  decrease the barriers to employment experienced by persons with 
422.22  disabilities or workers with severe physical or mental 
422.23  impairments; and 
422.24     (5) research efforts to provide useful information to guide 
422.25  future policy development on both the state and federal levels. 
422.26     (e) Funds awarded by the federal government for the 
422.27  purposes of this section are appropriated to the commissioner of 
422.28  human services. 
422.29     Sec. 16.  [REPEALER.] 
422.30     Minnesota Statutes 2002, section 256.482, subdivision 8, is 
422.31  repealed. 
422.32                             ARTICLE 11
422.33               PROGRAMS AND FUNDING TRANSFERRED FROM
422.34         THE DEPARTMENT OF CHILDREN, FAMILIES AND LEARNING
422.35     Section 1.  Minnesota Statutes 2002, section 119B.011, 
422.36  subdivision 5, is amended to read: 
423.1      Subd. 5.  [CHILD CARE.] "Child care" means the care of a 
423.2   child by someone other than a parent or, stepparent, legal 
423.3   guardian, eligible relative caregiver, or the spouses of any of 
423.4   the foregoing in or outside the child's own home for gain or 
423.5   otherwise, on a regular basis, for any part of a 24-hour day. 
423.6      Sec. 2.  Minnesota Statutes 2002, section 119B.011, 
423.7   subdivision 6, is amended to read: 
423.8      Subd. 6.  [CHILD CARE FUND.] "Child care fund" means a 
423.9   program under this chapter providing:  
423.10     (1) financial assistance for child care to parents engaged 
423.11  in employment, job search, or education and training leading to 
423.12  employment, or an at-home infant care subsidy; and 
423.13     (2) grants to develop, expand, and improve the access and 
423.14  availability of child care services statewide. 
423.15     Sec. 3.  Minnesota Statutes 2002, section 119B.011, 
423.16  subdivision 15, is amended to read: 
423.17     Subd. 15.  [INCOME.] "Income" means earned or unearned 
423.18  income received by all family members, including public 
423.19  assistance cash benefits and at-home infant care subsidy 
423.20  payments, unless specifically excluded and child support and 
423.21  maintenance distributed to the family under section 256.741, 
423.22  subdivision 15.  The following are excluded from income:  funds 
423.23  used to pay for health insurance premiums for family members, 
423.24  Supplemental Security Income, scholarships, work-study income, 
423.25  and grants that cover costs or reimbursement for tuition, fees, 
423.26  books, and educational supplies; student loans for tuition, 
423.27  fees, books, supplies, and living expenses; state and federal 
423.28  earned income tax credits; assistance specifically excluded as 
423.29  income by law; in-kind income such as food stamps, energy 
423.30  assistance, foster care assistance, medical assistance, child 
423.31  care assistance, and housing subsidies; earned income of 
423.32  full-time or part-time students up to the age of 19, who have 
423.33  not earned a high school diploma or GED high school equivalency 
423.34  diploma including earnings from summer employment; grant awards 
423.35  under the family subsidy program; nonrecurring lump sum income 
423.36  only to the extent that it is earmarked and used for the purpose 
424.1   for which it is paid; and any income assigned to the public 
424.2   authority according to section 256.741. 
424.3      Sec. 4.  Minnesota Statutes 2002, section 119B.011, 
424.4   subdivision 19, is amended to read: 
424.5      Subd. 19.  [PROVIDER.] "Provider" means (1) an individual 
424.6   or child care center or facility, either licensed or unlicensed, 
424.7   providing legal child care services as defined under section 
424.8   245A.03, or (2) an individual or child care center or facility 
424.9   holding a valid child care license issued by another state or a 
424.10  tribe and providing child care services in the licensing state 
424.11  or in the area under the licensing tribe's jurisdiction.  A 
424.12  legally unlicensed registered family child care provider must be 
424.13  at least 18 years of age, and not a member of the MFIP 
424.14  assistance unit or a member of the family receiving child care 
424.15  assistance to be authorized under this chapter.  
424.16     Sec. 5.  Minnesota Statutes 2002, section 119B.011, is 
424.17  amended by adding a subdivision to read: 
424.18     Subd. 19a.  [REGISTRATION.] "Registration" means the 
424.19  process used by a county to determine whether the provider 
424.20  selected by a family applying for or receiving child care 
424.21  assistance to care for that family's children meets the 
424.22  requirements necessary for payment of child care assistance for 
424.23  care provided by that provider. 
424.24     Sec. 6.  Minnesota Statutes 2002, section 119B.02, 
424.25  subdivision 1, is amended to read: 
424.26     Subdivision 1.  [CHILD CARE SERVICES.] The commissioner 
424.27  shall develop standards for county and human services boards to 
424.28  provide child care services to enable eligible families to 
424.29  participate in employment, training, or education programs.  
424.30  Within the limits of available appropriations, the commissioner 
424.31  shall distribute money to counties to reduce the costs of child 
424.32  care for eligible families.  The commissioner shall adopt rules 
424.33  to govern the program in accordance with this section.  The 
424.34  rules must establish a sliding schedule of fees for parents 
424.35  receiving child care services.  The rules shall provide that 
424.36  funds received as a lump sum payment of child support arrearages 
425.1   shall not be counted as income to a family in the month received 
425.2   but shall be prorated over the 12 months following receipt and 
425.3   added to the family income during those months.  In the rules 
425.4   adopted under this section, county and human services boards 
425.5   shall be authorized to establish policies for payment of child 
425.6   care spaces for absent children, when the payment is required by 
425.7   the child's regular provider.  The rules shall not set a maximum 
425.8   number of days for which absence payments can be made, but 
425.9   instead shall direct the county agency to set limits and pay for 
425.10  absences according to the prevailing market practice in the 
425.11  county.  County policies for payment of absences shall be 
425.12  subject to the approval of the commissioner.  The commissioner 
425.13  shall maximize the use of federal money under title I and title 
425.14  IV of Public Law Number 104-193, the Personal Responsibility and 
425.15  Work Opportunity Reconciliation Act of 1996, and other programs 
425.16  that provide federal or state reimbursement for child care 
425.17  services for low-income families who are in education, training, 
425.18  job search, or other activities allowed under those programs.  
425.19  Money appropriated under this section must be coordinated with 
425.20  the programs that provide federal reimbursement for child care 
425.21  services to accomplish this purpose.  Federal reimbursement 
425.22  obtained must be allocated to the county that spent money for 
425.23  child care that is federally reimbursable under programs that 
425.24  provide federal reimbursement for child care services.  The 
425.25  counties shall use the federal money to expand child care 
425.26  services.  The commissioner may adopt rules under chapter 14 to 
425.27  implement and coordinate federal program requirements. 
425.28     Sec. 7.  [119B.025] [DUTIES OF COUNTIES.] 
425.29     Subdivision 1.  [FACTORS WHICH MUST BE VERIFIED.] The 
425.30  county shall use the universal application at the initial 
425.31  application or at a redetermination if a universal application 
425.32  has not been previously completed.  When using the universal 
425.33  application, the county shall verify the following: 
425.34     (1) identity of adults; 
425.35     (2) presence of the minor child in the home, if 
425.36  questionable; 
426.1      (3) age; 
426.2      (4) immigration status, if related to eligibility; 
426.3      (5) social security number, if given; 
426.4      (6) income; 
426.5      (7) spousal support and child support payments made to 
426.6   persons outside the household; 
426.7      (8) residence; and 
426.8      (9) inconsistent information, if related to eligibility.  
426.9      Subd. 2.  [SOCIAL SECURITY NUMBERS.] The county must 
426.10  request social security numbers from all applicants for child 
426.11  care assistance under this chapter.  A county may not deny child 
426.12  care assistance solely on the basis of failure of an applicant 
426.13  to report a social security number. 
426.14     Sec. 8.  Minnesota Statutes 2002, section 119B.03, 
426.15  subdivision 9, is amended to read: 
426.16     Subd. 9.  [PORTABILITY POOL.] (a) The commissioner shall 
426.17  establish a pool of up to five percent of the annual 
426.18  appropriation for the basic sliding fee program to provide 
426.19  continuous child care assistance for eligible families who move 
426.20  between Minnesota counties.  At the end of each allocation 
426.21  period, any unspent funds in the portability pool must be used 
426.22  for assistance under the basic sliding fee program.  If 
426.23  expenditures from the portability pool exceed the amount of 
426.24  money available, the reallocation pool must be reduced to cover 
426.25  these shortages. 
426.26     (b) To be eligible for portable basic sliding fee 
426.27  assistance, a family that has moved from a county in which it 
426.28  was receiving basic sliding fee assistance to a county with a 
426.29  waiting list for the basic sliding fee program must: 
426.30     (1) meet the income and eligibility guidelines for the 
426.31  basic sliding fee program; and 
426.32     (2) notify the new county of residence within 30 60 days of 
426.33  moving and apply for basic sliding fee assistance in submit 
426.34  information to the new county of residence to verify eligibility 
426.35  for the basic sliding fee program. 
426.36     (c) The receiving county must: 
427.1      (1) accept administrative responsibility for applicants for 
427.2   portable basic sliding fee assistance at the end of the two 
427.3   months of assistance under the Unitary Residency Act; 
427.4      (2) continue basic sliding fee assistance for the lesser of 
427.5   six months or until the family is able to receive assistance 
427.6   under the county's regular basic sliding program; and 
427.7      (3) notify the commissioner through the quarterly reporting 
427.8   process of any family that meets the criteria of the portable 
427.9   basic sliding fee assistance pool. 
427.10     Sec. 9.  Minnesota Statutes 2002, section 119B.05, 
427.11  subdivision 1, is amended to read: 
427.12     Subdivision 1.  [ELIGIBLE PARTICIPANTS.] Families eligible 
427.13  for child care assistance under the MFIP child care program are: 
427.14     (1) MFIP participants who are employed or in job search and 
427.15  meet the requirements of section 119B.10; 
427.16     (2) persons who are members of transition year families 
427.17  under section 119B.011, subdivision 20, and meet the 
427.18  requirements of section 119B.10; 
427.19     (3) families who are participating in employment 
427.20  orientation or job search, or other employment or training 
427.21  activities that are included in an approved employability 
427.22  development plan under chapter 256K; 
427.23     (4) MFIP families who are participating in work job search, 
427.24  job support, employment, or training activities as required in 
427.25  their job search support or employment plan, or in appeals, 
427.26  hearings, assessments, or orientations according to chapter 
427.27  256J; 
427.28     (5) MFIP families who are participating in social services 
427.29  activities under chapter 256J or 256K as required in their 
427.30  employment plan approved according to chapter 256J or 256K; and 
427.31     (6) families who are participating in programs as required 
427.32  in tribal contracts under section 119B.02, subdivision 2, or 
427.33  256.01, subdivision 2. 
427.34     Sec. 10.  Minnesota Statutes 2002, section 119B.09, 
427.35  subdivision 7, is amended to read: 
427.36     Subd. 7.  [DATE OF ELIGIBILITY FOR ASSISTANCE.] (a) The 
428.1   date of eligibility for child care assistance under this chapter 
428.2   is the later of the date the application was signed; the 
428.3   beginning date of employment, education, or training; or the 
428.4   date a determination has been made that the applicant is a 
428.5   participant in employment and training services under Minnesota 
428.6   Rules, part 3400.0080, subpart 2a, or chapter 256J or 256K.  The 
428.7   date of eligibility for the basic sliding fee at-home infant 
428.8   child care program is the later of the date the infant is born 
428.9   or, in a county with a basic sliding fee waiting list, the date 
428.10  the family applies for at-home infant child care.  
428.11     (b) Payment ceases for a family under the at-home infant 
428.12  child care program when a family has used a total of 12 months 
428.13  of assistance as specified under section 119B.061.  Payment of 
428.14  child care assistance for employed persons on MFIP is effective 
428.15  the date of employment or the date of MFIP eligibility, 
428.16  whichever is later.  Payment of child care assistance for MFIP 
428.17  or work first participants in employment and training services 
428.18  is effective the date of commencement of the services or the 
428.19  date of MFIP or work first eligibility, whichever is later.  
428.20  Payment of child care assistance for transition year child care 
428.21  must be made retroactive to the date of eligibility for 
428.22  transition year child care. 
428.23     Sec. 11.  Minnesota Statutes 2002, section 119B.11, 
428.24  subdivision 2a, is amended to read: 
428.25     Subd. 2a.  [RECOVERY OF OVERPAYMENTS.] An amount of child 
428.26  care assistance paid to a recipient in excess of the payment due 
428.27  is recoverable by the county agency.  If the family remains 
428.28  eligible for child care assistance, the overpayment must be 
428.29  recovered through recoupment as identified in Minnesota Rules, 
428.30  part 3400.0140, subpart 19, except that the overpayments must be 
428.31  calculated and collected on a service period basis.  If the 
428.32  family no longer remains eligible for child care assistance, the 
428.33  county may choose to initiate efforts to recover overpayments 
428.34  from the family for overpayment less than $50.  If the 
428.35  overpayment is greater than or equal to $50, the county shall 
428.36  seek voluntary repayment of the overpayment from the family.  If 
429.1   the county is unable to recoup the overpayment through voluntary 
429.2   repayment, the county shall initiate civil court proceedings to 
429.3   recover the overpayment unless the county's costs to recover the 
429.4   overpayment will exceed the amount of the overpayment.  A family 
429.5   with an outstanding debt under this subdivision is not eligible 
429.6   for child care assistance until:  (1) the debt is paid in full; 
429.7   or (2) satisfactory arrangements are made with the county to 
429.8   retire the debt consistent with the requirements of this chapter 
429.9   and Minnesota Rules, chapter 3400, and the family is in 
429.10  compliance with the arrangements. 
429.11     Sec. 12.  Minnesota Statutes 2002, section 119B.12, 
429.12  subdivision 2, is amended to read: 
429.13     Subd. 2.  [PARENT FEE.] A family must be assessed a parent 
429.14  fee for each service period.  A family's monthly parent fee must 
429.15  be a fixed percentage of its annual gross income.  Parent fees 
429.16  must apply to families eligible for child care assistance under 
429.17  sections 119B.03 and 119B.05.  Income must be as defined in 
429.18  section 119B.011, subdivision 15.  The fixed percent is based on 
429.19  the relationship of the family's annual gross income to 100 
429.20  percent of state median income.  Beginning January 1, 1998, 
429.21  parent fees must begin at 75 percent of the poverty level.  The 
429.22  minimum parent fees for families between 75 percent and 100 
429.23  percent of poverty level must be $5 per month service period.  
429.24  Parent fees must be established in rule and must provide for 
429.25  graduated movement to full payment. 
429.26     Sec. 13.  [119B.125] [PROVIDER REQUIREMENTS.] 
429.27     Subdivision 1.  [AUTHORIZATION.] Except as provided in 
429.28  subdivision 3, a county must authorize the provider chosen by an 
429.29  applicant or a participant before the county can authorize 
429.30  payment for care provided by that provider.  The commissioner 
429.31  must establish the requirements necessary for authorization of 
429.32  providers. 
429.33     Subd. 2.  [UNSAFE CARE.] A county may deny authorization as 
429.34  a child care provider to any applicant or rescind authorization 
429.35  of any provider when the county knows or has reason to believe 
429.36  that the provider is unsafe or that the circumstances of the 
430.1   chosen child care arrangement are unsafe.  The county must 
430.2   include the conditions under which a provider or care 
430.3   arrangement will be determined to be unsafe in the county's 
430.4   child care fund plan under section 119B.08, subdivision 3. 
430.5      Subd. 3.  [PROVISIONAL PAYMENT.] After a county receives a 
430.6   completed application from a provider, the county may issue 
430.7   provisional authorization and payment to the provider during the 
430.8   time needed to determine whether to give final authorization to 
430.9   the provider. 
430.10     Subd. 4.  [RECORD KEEPING REQUIREMENT.] All providers must 
430.11  keep daily attendance records for children receiving child care 
430.12  assistance and must make those records available immediately to 
430.13  the county upon request.  The daily attendance records must be 
430.14  retained for six years after the date of service.  A county may 
430.15  deny authorization as a child care provider to any applicant or 
430.16  rescind authorization of any provider when the county knows or 
430.17  has reason to believe that the provider has not complied with 
430.18  the record keeping requirement in this subdivision. 
430.19     Sec. 14.  Minnesota Statutes 2002, section 119B.13, is 
430.20  amended by adding a subdivision to read: 
430.21     Subd. 1a.  [LEGAL NONLICENSED FAMILY CHILD CARE PROVIDER 
430.22  RATES.] (a) Legal nonlicensed family child care providers 
430.23  receiving reimbursement under this chapter must be paid in 
430.24  hourly blocks of time for families receiving assistance. 
430.25     (b) The maximum rate paid to legal nonlicensed family child 
430.26  care providers must be 90 percent of the county maximum hourly 
430.27  rate for licensed family child care providers.  In counties 
430.28  where the maximum hourly rate for licensed family child care 
430.29  providers is higher than the maximum weekly rate for those 
430.30  providers divided by 50, the maximum hourly rate that may be 
430.31  paid to legal nonlicensed family child care providers is the 
430.32  rate equal to the maximum weekly rate for licensed family child 
430.33  care providers divided by 50 and then multiplied by 0.90. 
430.34     (c) A rate which includes a provider bonus paid under 
430.35  subdivision 2 or a special needs rate paid under subdivision 3 
430.36  may be in excess of the maximum rate allowed under this 
431.1   subdivision. 
431.2      (d) Legal nonlicensed family child care providers receiving 
431.3   reimbursement under this chapter may not be paid registration 
431.4   fees for families receiving assistance. 
431.5      Sec. 15.  Minnesota Statutes 2002, section 119B.13, 
431.6   subdivision 2, is amended to read: 
431.7      Subd. 2.  [PROVIDER RATE BONUS FOR ACCREDITATION.] A family 
431.8   child care provider or child care center shall be paid a ten 
431.9   percent bonus above the maximum rate established in subdivision 
431.10  1 or 1a, if the provider or center holds a current early 
431.11  childhood development credential approved by the commissioner, 
431.12  up to the actual provider rate.  
431.13     Sec. 16.  Minnesota Statutes 2002, section 119B.13, 
431.14  subdivision 6, is amended to read: 
431.15     Subd. 6.  [PROVIDER PAYMENTS.] (a) Counties or the state 
431.16  shall make vendor payments to the child care provider or pay the 
431.17  parent directly for eligible child care expenses.  
431.18     (b) If payments for child care assistance are made to 
431.19  providers, the provider shall bill the county for services 
431.20  provided within ten days of the end of the month of service 
431.21  period.  If bills are submitted in accordance with the 
431.22  provisions of this subdivision within ten days of the end of the 
431.23  service period, a county or the state shall issue payment to the 
431.24  provider of child care under the child care fund within 30 days 
431.25  of receiving an invoice a bill from the provider.  Counties or 
431.26  the state may establish policies that make payments on a more 
431.27  frequent basis.  
431.28     (c) All bills must be submitted within 60 days of the last 
431.29  date of service on the bill.  A county may pay a bill submitted 
431.30  more than 60 days after the last date of service if the provider 
431.31  shows good cause why the bill was not submitted within 60 days.  
431.32  Good cause must be defined in the county's child care fund plan 
431.33  under section 119B.08, subdivision 3, and the definition of good 
431.34  cause must include county error.  A county may not pay any bill 
431.35  submitted more than a year after the last date of service on the 
431.36  bill. 
432.1      (d) A county may stop payment issued to a provider or may 
432.2   refuse to pay a bill submitted by a provider if: 
432.3      (1) the provider admits to intentionally giving the county 
432.4   materially false information on the provider's billing forms; or 
432.5      (2) a county finds by a preponderance of the evidence that 
432.6   the provider intentionally gave the county materially false 
432.7   information on the provider's billing forms. 
432.8      (e) A county's payment policies must be included in the 
432.9   county's child care plan under section 119B.08, subdivision 3.  
432.10  If payments are made by the state, in addition to being in 
432.11  compliance with this subdivision, the payments must be made in 
432.12  compliance with section 16A.124. 
432.13     Sec. 17.  Minnesota Statutes 2002, section 119B.19, 
432.14  subdivision 7, is amended to read: 
432.15     Subd. 7.  [CHILD CARE RESOURCE AND REFERRAL PROGRAMS.] 
432.16  Within each region, a child care resource and referral program 
432.17  must: 
432.18     (1) maintain one database of all existing child care 
432.19  resources and services and one database of family referrals; 
432.20     (2) provide a child care referral service for families; 
432.21     (3) develop resources to meet the child care service needs 
432.22  of families; 
432.23     (4) increase the capacity to provide culturally responsive 
432.24  child care services; 
432.25     (5) coordinate professional development opportunities for 
432.26  child care and school-age care providers; 
432.27     (6) administer and award child care services grants; 
432.28     (7) administer and provide loans for child development 
432.29  education and training; and 
432.30     (8) cooperate with the Minnesota Child Care Resource and 
432.31  Referral Network and its member programs to develop effective 
432.32  child care services and child care resources; and 
432.33     (9) assist in fostering coordination, collaboration, and 
432.34  planning among child care programs and community programs such 
432.35  as school readiness, Head Start, early childhood family 
432.36  education, local interagency early intervention committees, 
433.1   early childhood screening, special education services, and other 
433.2   early childhood care and education services and programs that 
433.3   provide flexible, family-focused services to families with young 
433.4   children to the extent possible. 
433.5      Sec. 18.  Minnesota Statutes 2002, section 119B.21, 
433.6   subdivision 11, is amended to read: 
433.7      Subd. 11.  [STATEWIDE ADVISORY TASK FORCE.] The 
433.8   commissioner may convene a statewide advisory task force to 
433.9   advise the commissioner on statewide grants or other child care 
433.10  issues.  The following groups must be represented:  family child 
433.11  care providers, child care center programs, school-age care 
433.12  providers, parents who use child care services, health services, 
433.13  social services, Head Start, public schools, school-based early 
433.14  childhood programs, special education programs, employers, and 
433.15  other citizens with demonstrated interest in child care issues.  
433.16  Additional members may be appointed by the commissioner.  The 
433.17  commissioner may compensate members for their travel, child 
433.18  care, and child care provider substitute expenses for attending 
433.19  task force meetings.  The commissioner may also pay a stipend to 
433.20  parent representatives for participating in task force meetings. 
433.21     Sec. 19.  Minnesota Statutes 2002, section 256.046, 
433.22  subdivision 1, is amended to read: 
433.23     Subdivision 1.  [HEARING AUTHORITY.] A local agency must 
433.24  initiate an administrative fraud disqualification hearing for 
433.25  individuals accused of wrongfully obtaining assistance or 
433.26  intentional program violations, in lieu of a criminal action 
433.27  when it has not been pursued, in the aid to families with 
433.28  dependent children program formerly codified in sections 256.72 
433.29  to 256.87, MFIP, child care assistance programs, general 
433.30  assistance, family general assistance program formerly codified 
433.31  in section 256D.05, subdivision 1, clause (15), Minnesota 
433.32  supplemental aid, medical care, or food stamp programs.  The 
433.33  hearing is subject to the requirements of section 256.045 and 
433.34  the requirements in Code of Federal Regulations, title 7, 
433.35  section 273.16, for the food stamp program and title 45, section 
433.36  235.112, as of September 30, 1995, for the cash grant, child 
434.1   care assistance administered under chapter 119B, and medical 
434.2   care programs. 
434.3      Sec. 20.  Minnesota Statutes 2002, section 256.0471, 
434.4   subdivision 1, is amended to read: 
434.5      Subdivision 1.  [QUALIFYING OVERPAYMENT.] Any overpayment 
434.6   for assistance granted under section 119B.05 chapter 119B, the 
434.7   MFIP program formerly codified under sections 256.031 to 
434.8   256.0361, and the AFDC program formerly codified under sections 
434.9   256.72 to 256.871; chapters 256B, 256D, 256I, 256J, and 256K; 
434.10  and the food stamp program, except agency error claims, become a 
434.11  judgment by operation of law 90 days after the notice of 
434.12  overpayment is personally served upon the recipient in a manner 
434.13  that is sufficient under rule 4.03(a) of the Rules of Civil 
434.14  Procedure for district courts, or by certified mail, return 
434.15  receipt requested.  This judgment shall be entitled to full 
434.16  faith and credit in this and any other state. 
434.17     Sec. 21.  Minnesota Statutes 2002, section 256.98, 
434.18  subdivision 8, is amended to read: 
434.19     Subd. 8.  [DISQUALIFICATION FROM PROGRAM.] (a) Any person 
434.20  found to be guilty of wrongfully obtaining assistance by a 
434.21  federal or state court or by an administrative hearing 
434.22  determination, or waiver thereof, through a disqualification 
434.23  consent agreement, or as part of any approved diversion plan 
434.24  under section 401.065, or any court-ordered stay which carries 
434.25  with it any probationary or other conditions, in the Minnesota 
434.26  family investment program, the food stamp program, the general 
434.27  assistance program, the group residential housing program, or 
434.28  the Minnesota supplemental aid program shall be disqualified 
434.29  from that program.  In addition, any person disqualified from 
434.30  the Minnesota family investment program shall also be 
434.31  disqualified from the food stamp program.  The needs of that 
434.32  individual shall not be taken into consideration in determining 
434.33  the grant level for that assistance unit:  
434.34     (1) for one year after the first offense; 
434.35     (2) for two years after the second offense; and 
434.36     (3) permanently after the third or subsequent offense.  
435.1      The period of program disqualification shall begin on the 
435.2   date stipulated on the advance notice of disqualification 
435.3   without possibility of postponement for administrative stay or 
435.4   administrative hearing and shall continue through completion 
435.5   unless and until the findings upon which the sanctions were 
435.6   imposed are reversed by a court of competent jurisdiction.  The 
435.7   period for which sanctions are imposed is not subject to 
435.8   review.  The sanctions provided under this subdivision are in 
435.9   addition to, and not in substitution for, any other sanctions 
435.10  that may be provided for by law for the offense involved.  A 
435.11  disqualification established through hearing or waiver shall 
435.12  result in the disqualification period beginning immediately 
435.13  unless the person has become otherwise ineligible for 
435.14  assistance.  If the person is ineligible for assistance, the 
435.15  disqualification period begins when the person again meets the 
435.16  eligibility criteria of the program from which they were 
435.17  disqualified and makes application for that program. 
435.18     (b) A family receiving assistance through child care 
435.19  assistance programs under chapter 119B with a family member who 
435.20  is found to be guilty of wrongfully obtaining child care 
435.21  assistance by a federal court, state court, or an administrative 
435.22  hearing determination or waiver, through a disqualification 
435.23  consent agreement, as part of an approved diversion plan under 
435.24  section 401.065, or a court-ordered stay with probationary or 
435.25  other conditions, is disqualified from child care assistance 
435.26  programs.  The disqualifications must be for periods of three 
435.27  months, six months, and two years for the first, second, and 
435.28  third offenses respectively.  Subsequent violations must result 
435.29  in permanent disqualification.  During the disqualification 
435.30  period, disqualification from any child care program must extend 
435.31  to all child care programs and must be immediately applied. 
435.32     (c) A provider caring for children receiving assistance 
435.33  through child care assistance programs under chapter 119B is 
435.34  disqualified from receiving payment for child care services from 
435.35  the child care assistance program under chapter 119B when the 
435.36  provider is found to have wrongfully obtained child care 
436.1   assistance by a federal court, state court, or an administrative 
436.2   hearing determination or waiver under section 256.046, through a 
436.3   disqualification consent agreement, as part of an approved 
436.4   diversion plan under section 401.065, or a court-ordered stay 
436.5   with probationary or other conditions.  The disqualification 
436.6   must be for a period of one year for the first offense and two 
436.7   years for the second offense.  Any subsequent violation must 
436.8   result in permanent disqualification.  The disqualification 
436.9   period must be imposed immediately after a determination is made 
436.10  under this paragraph.  During the disqualification period, the 
436.11  provider is disqualified from receiving payment from any child 
436.12  care program under chapter 119B.  
436.13     Sec. 22.  [CHILD CARE ASSISTANCE PARENT FEE SCHEDULE.] 
436.14     The parent fee schedule in Minnesota Rules, part 3400.0100, 
436.15  subpart 4, is amended as follows: 
436.16     (1) parent fees for families with incomes greater than 100 
436.17  percent of the federal poverty guidelines but less than 35.01 
436.18  percent of the state median income must equal 2.42 percent of 
436.19  adjusted gross income for families at 35 percent of the state 
436.20  median income; 
436.21     (2) parent fees for families with incomes equal to or 
436.22  greater than 35.01 percent of the state median income but less 
436.23  than 42.01 percent of the state median income must equal 2.97 
436.24  percent of adjusted gross income for families at 42 percent of 
436.25  the state median income; 
436.26     (3) parent fees for families with incomes equal to or 
436.27  greater than 42.01 percent of the state median income but less 
436.28  than 75 percent of the state median income must begin at 4.13 
436.29  percent of adjusted gross income and provide for graduated 
436.30  movement of fee increases using the fixed percentages of income 
436.31  listed in Minnesota Rules, part 3400.0100, subpart 4, increased 
436.32  by ten percent; and 
436.33     (4) parent fees for families equal to 75 percent of the 
436.34  state median income must equal 22 percent of gross annual income.
436.35     Sec. 23.  [REPEALER.] 
436.36     (a) Minnesota Statutes 2002, section 119B.061, is repealed. 
437.1      (b) Laws 2001, First Special Session chapter 3, article 1, 
437.2   section 16, is repealed. 
437.3                              ARTICLE 12 
437.4                            APPROPRIATIONS 
437.5   Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 
437.6      The sums shown in the columns marked "APPROPRIATIONS" are 
437.7   appropriated from the general fund, or any other fund named, to 
437.8   the agencies and for the purposes specified in the sections of 
437.9   this article, to be available for the fiscal years indicated for 
437.10  each purpose.  The figures "2004" and "2005" where used in this 
437.11  article, mean that the appropriation or appropriations listed 
437.12  under them are available for the fiscal year ending June 30, 
437.13  2004, or June 30, 2005, respectively.  Where a dollar amount 
437.14  appears in parentheses, it means a reduction of an appropriation.
437.15                          SUMMARY BY FUND
437.16                                                       BIENNIAL
437.17                             2004          2005           TOTAL
437.18  General            $3,922,794,000 $3,854,676,000 $7,777,470,000
437.19  State Government
437.20  Special Revenue        45,274,000     44,995,000     90,269,000
437.21  Health Care 
437.22  Access                332,944,000    377,340,000    710,284,000
437.23  Federal TANF          267,369,000    269,318,000    536,687,000
437.24  Lottery Prize 
437.25  Fund                    1,556,000      1,556,000      3,112,000
437.26  TOTAL              $4,569,937,000 $4,547,885,000 $9,117,822,000
437.27                                             APPROPRIATIONS 
437.28                                         Available for the Year 
437.29                                             Ending June 30 
437.30                                            2004         2005 
437.31  Sec. 2.  COMMISSIONER OF
437.32  HUMAN SERVICES
437.33  Subdivision 1.  Total
437.34  Appropriation                     $4,271,836,000 $4,249,978,000
437.35                Summary by Fund
437.36  General           3,675,770,000 3,607,503,000
437.37  State Government 
437.38  Special Revenue         534,000       534,000
437.39  Health Care
437.40  Access              326,607,000   371,067,000
437.41  Federal TANF        267,369,000   269,318,000
438.1    Lottery Cash
438.2   Flow                  1,556,000     1,556,000
438.3   [RECEIPTS FOR SYSTEMS PROJECTS.] 
438.4   Appropriations and federal receipts for 
438.5   information system projects for MAXIS, 
438.6   PRISM, MMIS, and SSIS must be deposited 
438.7   in the state system account authorized 
438.8   in Minnesota Statutes, section 
438.9   256.014.  Money appropriated for 
438.10  computer projects approved by the 
438.11  Minnesota office of technology, funded 
438.12  by the legislature, and approved by the 
438.13  commissioner of finance may be 
438.14  transferred from one project to another 
438.15  and from development to operations as 
438.16  the commissioner of human services 
438.17  considers necessary.  Any unexpended 
438.18  balance in the appropriation for these 
438.19  projects does not cancel but is 
438.20  available for ongoing development and 
438.21  operations. 
438.22  [GIFTS.] Notwithstanding Minnesota 
438.23  Statutes, chapter 7, the commissioner 
438.24  may accept on behalf of the state 
438.25  additional funding from sources other 
438.26  than state funds for the purpose of 
438.27  financing the cost of assistance 
438.28  program grants or nongrant 
438.29  administration.  All additional funding 
438.30  is appropriated to the commissioner for 
438.31  use as designated by the grantor of 
438.32  funding. 
438.33  [SYSTEMS CONTINUITY.] In the event of 
438.34  disruption of technical systems or 
438.35  computer operations, the commissioner 
438.36  may use available grant appropriations 
438.37  to ensure continuity of payments for 
438.38  maintaining the health, safety, and 
438.39  well-being of clients served by 
438.40  programs administered by the department 
438.41  of human services.  Grant funds must be 
438.42  used in a manner consistent with the 
438.43  original intent of the appropriation. 
438.44  [NONFEDERAL SHARE TRANSFERS.] The 
438.45  nonfederal share of activities for 
438.46  which federal administrative 
438.47  reimbursement is appropriated to the 
438.48  commissioner may be transferred to the 
438.49  special revenue fund. 
438.50  [TANF FUNDS APPROPRIATED TO OTHER 
438.51  ENTITIES.] Any expenditures from the 
438.52  TANF block grant shall be expended in 
438.53  accordance with the requirements and 
438.54  limitations of part A of title IV of 
438.55  the Social Security Act, as amended, 
438.56  and any other applicable federal 
438.57  requirement or limitation.  Prior to 
438.58  any expenditure of these funds, the 
438.59  commissioner shall assure that funds 
438.60  are expended in compliance with the 
438.61  requirements and limitations of federal 
438.62  law and that any reporting requirements 
438.63  of federal law are met.  It shall be 
438.64  the responsibility of any entity to 
438.65  which these funds are appropriated to 
438.66  implement a memorandum of understanding 
439.1   with the commissioner that provides the 
439.2   necessary assurance of compliance prior 
439.3   to any expenditure of funds.  The 
439.4   commissioner shall receipt TANF funds 
439.5   appropriated to other state agencies 
439.6   and coordinate all related interagency 
439.7   accounting transactions necessary to 
439.8   implement these appropriations.  
439.9   Unexpended TANF funds appropriated to 
439.10  any state, local, or nonprofit entity 
439.11  cancel at the end of the state fiscal 
439.12  year unless appropriating language 
439.13  permits otherwise. 
439.14  [TANF FUNDS TRANSFERRED TO OTHER 
439.15  FEDERAL GRANTS.] The commissioner must 
439.16  authorize transfers from TANF to other 
439.17  federal block grants so that funds are 
439.18  available to meet the annual 
439.19  expenditure needs as appropriated.  
439.20  Transfers may be authorized prior to 
439.21  the expenditure year with the agreement 
439.22  of the receiving entity.  Transferred 
439.23  funds must be expended in the year for 
439.24  which the funds were appropriated 
439.25  unless appropriation language permits 
439.26  otherwise.  In accelerating transfer 
439.27  authorizations, the commissioner must 
439.28  aim to preserve the future potential 
439.29  transfer capacity from TANF to other 
439.30  block grants. 
439.31  [TANF MAINTENANCE OF EFFORT.] (a) In 
439.32  order to meet the basic maintenance of 
439.33  effort (MOE) requirements of the TANF 
439.34  block grant specified under Code of 
439.35  Federal Regulations, title 45, section 
439.36  263.1, the commissioner may only report 
439.37  nonfederal money expended for allowable 
439.38  activities listed in the following 
439.39  clauses as TANF/MOE expenditures: 
439.40  (1) MFIP cash, diversionary work 
439.41  program, and food assistance benefits 
439.42  under Minnesota Statutes, chapter 256J; 
439.43  (2) the child care assistance programs 
439.44  under Minnesota Statutes, sections 
439.45  119B.03 and 119B.05, and county child 
439.46  care administrative costs under 
439.47  Minnesota Statutes, section 119B.15; 
439.48  (3) state and county MFIP 
439.49  administrative costs under Minnesota 
439.50  Statutes, chapters 256J and 256K; 
439.51  (4) state, county, and tribal MFIP 
439.52  employment services under Minnesota 
439.53  Statutes, chapters 256J and 256K; and 
439.54  (5) expenditures made on behalf of 
439.55  noncitizen MFIP recipients who qualify 
439.56  for the medical assistance without 
439.57  federal financial participation program 
439.58  under Minnesota Statutes, section 
439.59  256B.06, subdivision 4, paragraphs (d), 
439.60  (e), and (j).  
439.61  (b) The commissioner shall ensure that 
439.62  sufficient qualified nonfederal 
439.63  expenditures are made each year to meet 
440.1   the state's TANF/MOE requirements.  For 
440.2   the activities listed in paragraph (a), 
440.3   clauses (2) to (5), the commissioner 
440.4   may only report expenditures that are 
440.5   excluded from the definition of 
440.6   assistance under Code of Federal 
440.7   Regulations, title 45, section 260.31. 
440.8   (c) By August 31 of each year, the 
440.9   commissioner shall make a preliminary 
440.10  calculation to determine the likelihood 
440.11  that the state will meet its annual 
440.12  federal work participation requirement 
440.13  under Code of Federal Regulations, 
440.14  title 45, sections 261.21 and 261.23, 
440.15  after adjustment for any caseload 
440.16  reduction credit under Code of Federal 
440.17  Regulations, title 45, section 261.41.  
440.18  If the commissioner determines that the 
440.19  state will meet its federal work 
440.20  participation rate for the federal 
440.21  fiscal year ending that September, the 
440.22  commissioner may reduce the expenditure 
440.23  under paragraph (a), clause (1), to the 
440.24  extent allowed under Code of Federal 
440.25  Regulations, title 45, section 
440.26  263.1(a)(2). 
440.27  (d) For fiscal years beginning with 
440.28  state fiscal year 2003, the 
440.29  commissioner shall assure that the 
440.30  maintenance of effort used by the 
440.31  commissioner of finance for the 
440.32  February and November forecasts 
440.33  required under Minnesota Statutes, 
440.34  section 16A.103, contains expenditures 
440.35  under paragraph (a), clause (1), equal 
440.36  to at least 25 percent of the total 
440.37  required under Code of Federal 
440.38  Regulations, title 45, section 263.1. 
440.39  (e) If nonfederal expenditures for the 
440.40  programs and purposes listed in 
440.41  paragraph (a) are insufficient to meet 
440.42  the state's TANF/MOE requirements, the 
440.43  commissioner shall recommend additional 
440.44  allowable sources of nonfederal 
440.45  expenditures to the legislature, if the 
440.46  legislature is or will be in session to 
440.47  take action to specify additional 
440.48  sources of nonfederal expenditures for 
440.49  TANF/MOE before a federal penalty is 
440.50  imposed.  The commissioner shall 
440.51  otherwise provide notice to the 
440.52  legislative commission on planning and 
440.53  fiscal policy under paragraph (g). 
440.54  (f) If the commissioner uses authority 
440.55  granted under section 11, or similar 
440.56  authority granted by a subsequent 
440.57  legislature, to meet the state's 
440.58  TANF/MOE requirement in a reporting 
440.59  period, the commissioner shall inform 
440.60  the chairs of the appropriate 
440.61  legislative committees about all 
440.62  transfers made under that authority for 
440.63  this purpose. 
440.64  (g) If the commissioner determines that 
440.65  nonfederal expenditures under paragraph 
440.66  (a) are insufficient to meet TANF/MOE 
441.1   expenditure requirements, and if the 
441.2   legislature is not or will not be in 
441.3   session to take timely action to avoid 
441.4   a federal penalty, the commissioner may 
441.5   report nonfederal expenditures from 
441.6   other allowable sources as TANF/MOE 
441.7   expenditures after the requirements of 
441.8   this paragraph are met.  The 
441.9   commissioner may report nonfederal 
441.10  expenditures in addition to those 
441.11  specified under paragraph (a) as 
441.12  nonfederal TANF/MOE expenditures, but 
441.13  only ten days after the commissioner of 
441.14  finance has first submitted the 
441.15  commissioner's recommendations for 
441.16  additional allowable sources of 
441.17  nonfederal TANF/MOE expenditures to the 
441.18  members of the legislative commission 
441.19  on planning and fiscal policy for their 
441.20  review. 
441.21  (h) The commissioner of finance shall 
441.22  not incorporate any changes in federal 
441.23  TANF expenditures or nonfederal 
441.24  expenditures for TANF/MOE that may 
441.25  result from reporting additional 
441.26  allowable sources of nonfederal 
441.27  TANF/MOE expenditures under the interim 
441.28  procedures in paragraph (g) into the 
441.29  February or November forecasts required 
441.30  under Minnesota Statutes, section 
441.31  16A.103, unless the commissioner of 
441.32  finance has approved the additional 
441.33  sources of expenditures under paragraph 
441.34  (g). 
441.35  (i) Minnesota Statutes, section 
441.36  256.011, subdivision 3, which requires 
441.37  that federal grants or aids secured or 
441.38  obtained under that subdivision be used 
441.39  to reduce any direct appropriations 
441.40  provided by law, do not apply if the 
441.41  grants or aids are federal TANF funds. 
441.42  (j) Notwithstanding section 14, 
441.43  paragraph (a), clauses (1) to (5), and 
441.44  paragraphs (b) to (j) expire June 30, 
441.45  2007. 
441.46  [TANF APPROPRIATION CANCELLATION.] 
441.47  Notwithstanding the provisions of Laws 
441.48  2000, chapter 488, article 1, section 
441.49  16, any prior appropriations of TANF 
441.50  funds to the department of trade and 
441.51  economic development or to the job 
441.52  skills partnership board or any 
441.53  transfers of TANF funds from another 
441.54  agency to the department of trade and 
441.55  economic development or to the job 
441.56  skills partnership board are not 
441.57  available until expended, and if 
441.58  unexpended as of June 30, 2003, these 
441.59  appropriations or transfers shall 
441.60  cancel to the TANF fund. 
441.61  [CSSA TRADITIONAL APPROPRIATION.] 
441.62  Notwithstanding Minnesota Statutes, 
441.63  section 256E.06, subdivisions 1 and 2, 
441.64  the appropriations available under that 
441.65  section in fiscal years 2004 and 2005 
441.66  must be distributed to each county 
442.1   proportionately to the aid received by 
442.2   the county in calendar year 2002. 
442.3   [SHIFT COUNTY PAYMENT.] The 
442.4   commissioner shall make up to 100 
442.5   percent of the calendar year 2005 
442.6   payments to counties for family 
442.7   preservation grants, developmental 
442.8   disabilities semi-independent living 
442.9   services grants, developmental 
442.10  disabilities family support grants, 
442.11  adult mental health grants, and 
442.12  children's mental health grants from 
442.13  fiscal year 2006 appropriations.  This 
442.14  is a onetime payment shift.  Calendar 
442.15  year 2006 and future payments for these 
442.16  grants are not affected by this shift.  
442.17  This provision expires June 30, 2006. 
442.18  [CAPITATION RATE INCREASE.] Of the 
442.19  health care access fund appropriations 
442.20  to the University of Minnesota in the 
442.21  higher education omnibus appropriation 
442.22  bill, $2,157,000 in fiscal year 2004 
442.23  and $2,157,000 in fiscal year 2005 are 
442.24  to be used to increase the capitation 
442.25  payments under Minnesota Statutes, 
442.26  section 256B.69.  Notwithstanding the 
442.27  provisions of section 13, this 
442.28  provision shall not expire. 
442.29  Subd. 2.  Agency Management        
442.30                Summary by Fund
442.31  General              40,473,000    26,868,000
442.32  State Government                             
442.33  Special Revenue         415,000       415,000
442.34  Health Care Access    3,673,000     3,673,000
442.35  Federal TANF            320,000       320,000
442.36  The amounts that may be spent from the 
442.37  appropriation for each purpose are as 
442.38  follows: 
442.39  (a) Financial Operations 
442.40                Summary by Fund
442.41  General               8,751,000     9,056,000
442.42  Health Care Access      828,000       828,000
442.43  Federal TANF            220,000       220,000
442.44  [SPECIAL REVENUE FUND TRANSFER.] 
442.45  Notwithstanding any law to the 
442.46  contrary, excluding accounts authorized 
442.47  under Minnesota Statutes, section 
442.48  16A.1286, and chapter 254B, the 
442.49  commissioner shall transfer $1,400,000 
442.50  of uncommitted special revenue fund 
442.51  balances to the general fund upon final 
442.52  enactment.  The actual transfers shall 
442.53  be identified within the standard 
442.54  information provided to the chairs of 
442.55  the house health and human services 
442.56  finance committee and the senate 
443.1   health, human services, and corrections 
443.2   budget division in December 2003. 
443.3   (b) Legal and
443.4   Regulation Operations 
443.5                 Summary by Fund
443.6   General               7,896,000     8,168,000
443.7   State Government                             
443.8   Special Revenue         415,000       415,000
443.9   Health Care Access      244,000       244,000
443.10  Federal TANF            100,000       100,000
443.11  (c) Management Operations 
443.12                Summary by Fund
443.13  General              16,373,000     2,076,000
443.14  Health Care Access    1,623,000     1,623,000
443.15  (d) Information Technology
443.16  Operations 
443.17                Summary by Fund
443.18  General               7,453,000     7,568,000
443.19  Health Care Access      978,000       978,000
443.20  Subd. 3.  Revenue and Pass-Through 
443.21                Summary by Fund 
443.22  Federal TANF         69,130,000    64,442,000
443.23  [INCREASE IN TANF TRANSFER TO CHILD 
443.24  CARE AND DEVELOPMENT FUND.] Transfers 
443.25  of TANF to the child care development 
443.26  fund for the purposes of MFIP child 
443.27  care assistance shall be increased by 
443.28  $1,297,000 in fiscal year 2004 and 
443.29  $1,241,000 in fiscal year 2005. 
443.30  Subd. 4.  Children's Services Grants 
443.31                Summary by Fund
443.32  General              68,560,000    64,115,000
443.33  Federal TANF            640,000       640,000
443.34  [ADOPTION ASSISTANCE INCENTIVE GRANTS.] 
443.35  Federal funds available during fiscal 
443.36  year 2004 and fiscal year 2005, for 
443.37  adoption incentive grants are 
443.38  appropriated to the commissioner for 
443.39  these purposes. 
443.40  [ADOPTION ASSISTANCE AND RELATIVE 
443.41  CUSTODY ASSISTANCE.] The commissioner 
443.42  may transfer unencumbered appropriation 
443.43  balances for adoption assistance and 
443.44  relative custody assistance between 
443.45  fiscal years and between programs. 
443.46  [OUT-OF-HOME PLACEMENT.] Minnesota 
444.1   youth who require out-of-home placement 
444.2   through a corrections order must be 
444.3   placed in a Minnesota program or 
444.4   facility unless a program in a border 
444.5   state is closer to the youth's home or 
444.6   there is no vacancy in an appropriate 
444.7   in-state program or facility.  If no 
444.8   appropriate regional or in-state 
444.9   program is available, this must be 
444.10  documented in the case plan prior to 
444.11  placement in an out-of-state facility.  
444.12  Justification for out-of-state 
444.13  placement of Minnesota youth must be 
444.14  included in reports to the Minnesota 
444.15  department of corrections. 
444.16  [FETAL ALCOHOL.] Of the appropriation 
444.17  from the general fund, $400,000 each 
444.18  year is to the commissioner to contract 
444.19  with the Minnesota Organization on 
444.20  Fetal Alcohol Syndrome to award grants 
444.21  for fetal alcohol spectrum disorder 
444.22  (FASD) programs and services, 
444.23  including, but not limited to: 
444.24  (1) professional training and education 
444.25  about FASD to health care, education, 
444.26  human service, judicial, and 
444.27  correctional professionals; 
444.28  (2) grants to community organizations 
444.29  and coalitions to provide FASD 
444.30  prevention and intervention services; 
444.31  (3) FASD diagnostic clinics that 
444.32  utilize a multidisciplinary team to 
444.33  provide a complete and comprehensive 
444.34  assessment of children and adults with 
444.35  FASD; 
444.36  (4) intensive, one-to-one services for 
444.37  high-risk women who are heavy drinkers 
444.38  or drug users, are not connected to 
444.39  existing community resources, receive 
444.40  little or no prenatal care, and have 
444.41  delivered one baby affected by prenatal 
444.42  substance abuse; and 
444.43  (5) programs and services specifically 
444.44  designed for those affected by FASD. 
444.45  The Minnesota Organization on Fetal 
444.46  Alcohol Syndrome may retain five 
444.47  percent of the appropriation for 
444.48  administrative costs.  Any unencumbered 
444.49  balance in the first year does not 
444.50  cancel but is available for the second 
444.51  year. 
444.52  Subd. 5.  Children's Services Management 
444.53       5,221,000      5,283,000 
444.54  Subd. 6.  Basic Health Care Grants 
444.55                Summary by Fund
444.56  General           1,560,179,000 1,582,159,000
444.57  Health Care Access  307,406,000   351,866,000
445.1   [UPDATING FEDERAL POVERTY GUIDELINES.] 
445.2   Annual updates to the federal poverty 
445.3   guidelines are effective each July 1, 
445.4   following publication by the United 
445.5   States Department of Health and Human 
445.6   Services for health care programs under 
445.7   Minnesota Statutes, chapters 256, 256B, 
445.8   256D, and 256L. 
445.9   The amounts that may be spent from this 
445.10  appropriation for each purpose are as 
445.11  follows: 
445.12  (a) MinnesotaCare Grants 
445.13                Summary by Fund
445.14  Health Care Access 306,656,000   351,116,000
445.15  [MINNESOTACARE FEDERAL RECEIPTS.] 
445.16  Receipts received as a result of 
445.17  federal participation pertaining to 
445.18  administrative costs of the Minnesota 
445.19  health care reform waiver shall be 
445.20  deposited as nondedicated revenue in 
445.21  the health care access fund.  Receipts 
445.22  received as a result of federal 
445.23  participation pertaining to grants 
445.24  shall be deposited in the federal fund 
445.25  and shall offset health care access 
445.26  funds for payments to providers. 
445.27  [MINNESOTACARE FUNDING.] The 
445.28  commissioner may expend money 
445.29  appropriated from the health care 
445.30  access fund for MinnesotaCare in either 
445.31  fiscal year of the biennium. 
445.32  (b) MA Basic Health Care Grants - 
445.33  Families and Children 
445.34     570,732,000    576,295,000
445.35  [SERVICES TO PREGNANT WOMEN.] The 
445.36  commissioner shall use available 
445.37  federal money for the State-Children's 
445.38  Health Insurance Program for medical 
445.39  assistance services provided to 
445.40  pregnant women who are not otherwise 
445.41  eligible for federal financial 
445.42  participation beginning in fiscal year 
445.43  2003.  Notwithstanding section 14, this 
445.44  paragraph shall not expire. 
445.45  [MANAGED CARE RATE INCREASE.] (a) 
445.46  Effective January 1, 2004, the 
445.47  commissioner of human services shall 
445.48  increase the total payments to managed 
445.49  care plans under Minnesota Statutes, 
445.50  section 256B.69, by an amount equal to 
445.51  the cost increases to the managed care 
445.52  plans from by the elimination of: (1) 
445.53  the exemption from the taxes imposed 
445.54  under Minnesota Statutes, section 
445.55  297I.05, subdivision 5, for premiums 
445.56  paid by the state for medical 
445.57  assistance, general assistance medical 
445.58  care, and the MinnesotaCare program; 
445.59  and (2) the exemption of gross revenues 
445.60  subject to the taxes imposed under 
445.61  Minnesota Statutes, sections 295.50 to 
446.1   295.57, for payments paid by the state 
446.2   for services provided under medical 
446.3   assistance, general assistance medical 
446.4   care, and the MinnesotaCare program.  
446.5   Any increase based on clause (2) must 
446.6   be reflected in provider rates paid by 
446.7   the managed care plan unless the 
446.8   managed care plan is a staff model 
446.9   health plan company. 
446.10  (b) The commissioner of human services 
446.11  shall increase by two percent the 
446.12  fee-for-service payments under medical 
446.13  assistance, general assistance medical 
446.14  care, and the MinnesotaCare program for 
446.15  services subject to the hospital, 
446.16  surgical center, or health care 
446.17  provider taxes under Minnesota 
446.18  Statutes, sections 295.50 to 295.57, 
446.19  effective for services rendered on or 
446.20  after January 1, 2004.  
446.21  (c) The commissioner of finance shall 
446.22  transfer from the health care access 
446.23  fund to the general fund the following 
446.24  amounts in the fiscal years indicated:  
446.25  2004, $16,587,000; 2005, $46,322,000; 
446.26  2006, $49,413,000; and 2007, 
446.27  $52,659,000. 
446.28  (d) For fiscal years after 2007, the 
446.29  commissioner of finance shall transfer 
446.30  from the health care access fund to the 
446.31  general fund an amount equal to the 
446.32  revenue collected by the commissioner 
446.33  of revenue on the following:  
446.34  (1) gross revenues received by 
446.35  hospitals, surgical centers, and health 
446.36  care providers as payments for services 
446.37  provided under medical assistance, 
446.38  general assistance medical care, and 
446.39  the MinnesotaCare program, including 
446.40  payments received directly from the 
446.41  state or from a prepaid plan, under 
446.42  Minnesota Statutes, sections 295.50 to 
446.43  295.57; and 
446.44  (2) premiums paid by the state under 
446.45  medical assistance, general assistance 
446.46  medical care, and the MinnesotaCare 
446.47  program under Minnesota Statutes, 
446.48  section 297I.05, subdivision 5.  
446.49  The commissioner of finance shall 
446.50  monitor and adjust if necessary the 
446.51  amount transferred each fiscal year 
446.52  from the health care access fund to the 
446.53  general fund to ensure that the amount 
446.54  transferred equals the tax revenue 
446.55  collected for the items described in 
446.56  clauses (1) and (2) for that fiscal 
446.57  year. 
446.58  (e) Notwithstanding section 14, these 
446.59  provisions shall not expire. 
446.60  (c) MA Basic Health Care Grants - Elderly 
446.61  and Disabled 
446.62     684,129,000    696,776,000
447.1   [DELAY MEDICAL ASSISTANCE 
447.2   FEE-FOR-SERVICE - ACUTE CARE.] The 
447.3   following payments in fiscal year 2005 
447.4   from the Medicaid Management 
447.5   Information System that would otherwise 
447.6   have been made to providers for medical 
447.7   assistance and general assistance 
447.8   medical care services shall be delayed 
447.9   and included in the first payment in 
447.10  fiscal year 2006: 
447.11  (1) for hospitals, the last two 
447.12  payments; and 
447.13  (2) for nonhospital providers, the last 
447.14  payment. 
447.15  This payment delay shall not include 
447.16  payments to skilled nursing facilities, 
447.17  intermediate care facilities for mental 
447.18  retardation, prepaid health plans, home 
447.19  health agencies, personal care nursing 
447.20  providers, and providers of only waiver 
447.21  services.  The provisions of Minnesota 
447.22  Statutes, section 16A.124, shall not 
447.23  apply to these delayed payments.  
447.24  Notwithstanding section 14, this 
447.25  provision shall not expire. 
447.26  [DEAF AND HARD-OF-HEARING SERVICES.] If 
447.27  the service provider for mental health 
447.28  services to persons who are deaf or 
447.29  hearing impaired is not able to qualify 
447.30  as a medical assistance provider after 
447.31  making reasonable efforts, the 
447.32  commissioner shall transfer $227,000 in 
447.33  fiscal year 2005 from medical 
447.34  assistance to deaf and hard-of-hearing 
447.35  grants in order to enable the provider 
447.36  to continue providing services to 
447.37  eligible persons. 
447.38  (d) General Assistance Medical Care 
447.39  Grants 
447.40     289,788,000    291,115,000
447.41  (e) Health Care Grants - Other 
447.42  Assistance 
447.43                Summary by Fund
447.44  General               4,905,000     5,278,000
447.45  Health Care Access      750,000       750,000
447.46  [GRANT FOR PHYSICIAN RESIDENT 
447.47  TRAINING.] Of this appropriation, 
447.48  $25,000 each year is to a nursing 
447.49  facility in the city of Waseca to 
447.50  continue a training program for 
447.51  University of Minnesota medical school 
447.52  physician residents. 
447.53  [DENTAL ACCESS GRANTS CARRYOVER 
447.54  AUTHORITY.] Any unspent portion of the 
447.55  appropriation from the health care 
447.56  access fund in fiscal years 2002 and 
447.57  2003 for dental access grants under 
447.58  Minnesota Statutes, section 256B.53, 
447.59  shall not cancel but shall be allowed 
448.1   to carry forward to be spent in the 
448.2   biennium beginning July 1, 2003, for 
448.3   these purposes. 
448.4   [STOP-LOSS FUND ACCOUNT.] The 
448.5   appropriation to the purchasing 
448.6   alliance stop-loss fund account 
448.7   established under Minnesota Statutes, 
448.8   section 256.956, subdivision 2, for 
448.9   fiscal years 2004 and 2005 shall only 
448.10  be available for claim reimbursements 
448.11  for qualifying enrollees who are 
448.12  members of purchasing alliances that 
448.13  meet the requirements described under 
448.14  Minnesota Statutes, section 256.956, 
448.15  subdivision 1, paragraph (f), clauses 
448.16  (1), (2), and (3). 
448.17  (f) Prescription Drug Program 
448.18      10,625,000     12,705,000
448.19  [PRESCRIPTION DRUG ASSISTANCE PROGRAM.] 
448.20  Of the appropriation for the 
448.21  prescription drug program under 
448.22  Minnesota Statutes, section 256.955, 
448.23  $300,000 each year is for the 
448.24  commissioner to establish and 
448.25  administer the prescription drug 
448.26  assistance program through the 
448.27  Minnesota board on aging under 
448.28  Minnesota Statutes, section 256.975, 
448.29  subdivision 9.  Any federal match 
448.30  earned on these activities is dedicated 
448.31  to the prescription drug program. 
448.32  [REBATE REVENUE RECAPTURE.] Any funds 
448.33  received by the state from a drug 
448.34  manufacturer due to errors in the 
448.35  pharmaceutical pricing used by the 
448.36  manufacturer in determining the 
448.37  prescription drug rebate are 
448.38  appropriated to the commissioner to 
448.39  augment funding of the prescription 
448.40  drug program established in Minnesota 
448.41  Statutes, section 256.955. 
448.42  Subd. 7.  Health Care Management 
448.43                Summary by Fund
448.44  General              25,150,000    26,191,000
448.45  Health Care Access   14,179,000    14,179,000
448.46  The amounts that may be spent from this 
448.47  appropriation for each purpose are as 
448.48  follows: 
448.49  (a) Health Care Policy Administration 
448.50                Summary by Fund
448.51  General               5,674,000     7,215,000
448.52  Health Care Access      846,000       846,000
448.53  [MINNESOTACARE OUTREACH REIMBURSEMENT.] 
448.54  Federal administrative reimbursement 
448.55  resulting from MinnesotaCare outreach 
448.56  is appropriated to the commissioner for 
449.1   this activity. 
449.2   [MINNESOTA SENIOR HEALTH OPTIONS 
449.3   REIMBURSEMENT.] Federal administrative 
449.4   reimbursement resulting from the 
449.5   Minnesota senior health options project 
449.6   is appropriated to the commissioner for 
449.7   this activity. 
449.8   [UTILIZATION REVIEW.] Federal 
449.9   administrative reimbursement resulting 
449.10  from prior authorization and inpatient 
449.11  admission certification by a 
449.12  professional review organization shall 
449.13  be dedicated to the commissioner for 
449.14  these purposes.  A portion of these 
449.15  funds must be used for activities to 
449.16  decrease unnecessary pharmaceutical 
449.17  costs in medical assistance. 
449.18  (b) Health Care Operations 
449.19                Summary by Fund
449.20  General              19,476,000    18,976,000
449.21  Health Care Access   13,333,000    13,333,000
449.22  [TRIBAL PREPAID MEDICAL PROGRAMS.] A 
449.23  portion of state funding for the 
449.24  nonfederal share of prepaid medical 
449.25  assistance program (PMAP) 
449.26  administrative costs for county managed 
449.27  care advocacy and enrollment may be 
449.28  allocated to tribes that are 
449.29  establishing new PMAP programs. 
449.30  Subd. 8.  State-operated Services 
449.31     195,162,000    186,775,000
449.32  [MITIGATION RELATED TO STATE-OPERATED 
449.33  SERVICES RESTRUCTURING.] Money 
449.34  appropriated to finance mitigation 
449.35  expenses related to restructuring 
449.36  state-operated services programs and 
449.37  administrative services may be 
449.38  transferred between fiscal years within 
449.39  the biennium. 
449.40  [STATE-OPERATED SERVICES 
449.41  RESTRUCTURING.] For purposes of 
449.42  restructuring state-operated services, 
449.43  any state-operated services employee 
449.44  whose position is to be eliminated 
449.45  shall be afforded the options provided 
449.46  in applicable collective bargaining 
449.47  agreements.  All salary and mitigation 
449.48  allocations from fiscal year 2004 shall 
449.49  be carried forward into fiscal year 
449.50  2005.  Provided there is no conflict 
449.51  with any collective bargaining 
449.52  agreement, any state-operated services 
449.53  position reduction must only be 
449.54  accomplished through mitigation, 
449.55  attrition, transfer, and other measures 
449.56  as provided in state or applicable 
449.57  collective bargaining agreements and in 
449.58  Minnesota Statutes, section 252.50, 
449.59  subdivision 11, and not through layoff. 
450.1   [REPAIRS AND BETTERMENTS.] The 
450.2   commissioner may transfer unencumbered 
450.3   appropriation balances between fiscal 
450.4   years within the biennium for the state 
450.5   residential facilities repairs and 
450.6   betterments account and special 
450.7   equipment. 
450.8   [NAMES REQUIRED ON MONUMENTS.] (a) Of 
450.9   this appropriation, $100,000 in fiscal 
450.10  year 2004 is to the commissioner for 
450.11  grants to community-based or statewide 
450.12  organizations for the purpose of 
450.13  purchasing and placing cemetery grave 
450.14  markers or memorial monuments that 
450.15  include the available names of 
450.16  individuals at cemeteries located at 
450.17  regional treatment centers operated or 
450.18  formerly operated by the commissioner.  
450.19  Individual monuments shall not be 
450.20  placed if the family of the deceased 
450.21  resident objects to the placement of 
450.22  the monument. 
450.23  (b) To be eligible for a grant, a 
450.24  community-based or statewide 
450.25  organization must include members of 
450.26  local service or charitable 
450.27  organizations, members of the business 
450.28  community, persons with mental illness 
450.29  or developmental disabilities, and, to 
450.30  the extent possible, family members of 
450.31  deceased residents of the regional 
450.32  treatment center and present or former 
450.33  employees of the regional treatment 
450.34  center sites. 
450.35  (c) Any unexpended portion of the 
450.36  appropriation shall not cancel, but 
450.37  shall be available in fiscal year 2005 
450.38  for these purposes. 
450.39  [DEVELOPMENT OF COMMUNITY MENTAL HEALTH 
450.40  SYSTEM REPORT.] As the community mental 
450.41  health system is restructured, the 
450.42  commissioner of human services shall 
450.43  report quarterly, beginning July 1, 
450.44  2003, to the chairs of the senate and 
450.45  house of representatives health and 
450.46  human services finance and policy 
450.47  committees on: 
450.48  (1) buildings vacated or offered for 
450.49  sale or lease at each regional 
450.50  treatment center campus; 
450.51  (2) the development of community 
450.52  services that result in a reduced 
450.53  utilization of campus-based adult 
450.54  mental health programs; and 
450.55  (3) client census for the adult mental 
450.56  health programs at each of the regional 
450.57  treatment center campuses. 
450.58  [ONETIME REDUCTION TO DEDICATED 
450.59  REVENUES.] (a) For fiscal year 2003 
450.60  only, the commissioner shall transfer 
450.61  $4,700,000 of state-operated services 
450.62  fund balances from the accounts 
450.63  indicated to the general fund as 
451.1   follows: 
451.2   (1) $3,200,000 from traumatic brain 
451.3   injury enterprises; 
451.4   (2) $1,000,000 from lease income; and 
451.5   (3) $500,000 from ICF/MR depreciation. 
451.6   (b) Paragraph (a) is effective the day 
451.7   following final enactment. 
451.8   Subd. 9.  Continuing Care Grants 
451.9                 Summary by Fund
451.10  General           1,581,064,000 1,533,320,000
451.11  Lottery Prize Fund    1,408,000     1,408,000
451.12  The amounts that may be spent from this 
451.13  appropriation for each purpose are as 
451.14  follows: 
451.15  (a) Community Social Services
451.16      55,700,000     55,700,000
451.17  (b) Aging and Adult Service Grants
451.18      13,361,000     14,129,000
451.19  [AREA AGENCY ON AGING GRANTS.] Of this 
451.20  appropriation, $391,000 each year is 
451.21  for seniors agenda for independent 
451.22  living grants to three nonprofit area 
451.23  agencies on aging to be used to match 
451.24  federal Older American Act grants. 
451.25  (c) Deaf and Hard-of-hearing 
451.26  Service Grants 
451.27       1,725,000      1,498,000
451.28  (d) Mental Health Grants 
451.29                Summary by Fund
451.30  General              53,909,000    35,002,000
451.31  Lottery Prize Fund    1,408,000     1,408,000
451.32  [RESTRUCTURING OF ADULT MENTAL HEALTH 
451.33  SERVICES.] The commissioner may make 
451.34  transfers that do not increase the 
451.35  state share of costs to effectively 
451.36  implement the restructuring of adult 
451.37  mental health services.  
451.38  [MENTAL HEALTH COUNSELING FOR FARM 
451.39  FAMILIES.] Of the general fund 
451.40  appropriation, $150,000 in fiscal year 
451.41  2004 is to the commissioner to be 
451.42  transferred to the board of trustees of 
451.43  the Minnesota state colleges and 
451.44  universities for mental health 
451.45  counseling support to farm families and 
451.46  business operators to be provided 
451.47  through the farm business management 
451.48  program at Central Lakes college and 
451.49  Ridgewater college.  This appropriation 
452.1   is available until June 30, 2005. 
452.2   [COMPULSIVE GAMBLING.] Of the 
452.3   appropriation from the lottery prize 
452.4   fund, $250,000 each year is for the 
452.5   following purposes: 
452.6   (1) $100,000 each year is for a grant 
452.7   to the Southeast Asian Problem Gambling 
452.8   Consortium.  The consortium must 
452.9   provide statewide compulsive gambling 
452.10  prevention and treatment services for 
452.11  Lao, Hmong, Vietnamese, and Cambodian 
452.12  families, adults, and adolescents.  The 
452.13  appropriation in this clause shall not 
452.14  become part of base level funding for 
452.15  the biennium beginning July 1, 2005.  
452.16  Any unencumbered balance of the 
452.17  appropriation in the first year does 
452.18  not cancel but is available for the 
452.19  second year; and 
452.20  (2) $150,000 each year is for a grant 
452.21  to a compulsive gambling council 
452.22  located in St. Louis county.  The 
452.23  gambling council must provide a 
452.24  statewide compulsive gambling 
452.25  prevention and education project for 
452.26  adolescents.  Any unencumbered balance 
452.27  of the appropriation in the first year 
452.28  of the biennium does not cancel but is 
452.29  available for the second year. 
452.30  (e) Community Support Grants 
452.31      11,725,000      8,794,000
452.32  [CENTERS FOR INDEPENDENT LIVING STUDY.] 
452.33  The commissioner of human services, in 
452.34  consultation with the commissioner of 
452.35  economic security, the centers for 
452.36  independent living, and consumer 
452.37  representatives, shall study the 
452.38  financing of the centers for 
452.39  independent living authorized under 
452.40  Minnesota Statutes, section 268A.11, 
452.41  and make recommendations on options to 
452.42  maximize federal financial 
452.43  participation.  Study components shall 
452.44  include: 
452.45  (1) the demographics of individuals 
452.46  served by the centers for independent 
452.47  living; 
452.48  (2) the range of services the centers 
452.49  for independent living provide to these 
452.50  individuals; 
452.51  (3) other publicly funded services 
452.52  received by individuals supported by 
452.53  the centers; and 
452.54  (4) strategies for maximizing federal 
452.55  financial participation for eligible 
452.56  activities carried out by centers for 
452.57  independent living. 
452.58  The commissioner shall report with 
452.59  fiscal and programmatic recommendations 
452.60  to the chairs of the appropriate house 
453.1   of representatives and senate finance 
453.2   and policy committees by January 15, 
453.3   2004. 
453.4   (f) Medical Assistance Long-term 
453.5   Care Waivers and Home Care Grants 
453.6      665,124,000    698,676,000
453.7   [REDUCE GROWTH IN MR/RC WAIVER.] The 
453.8   commissioner shall reduce the growth in 
453.9   the MR/RC waiver by not allocating the 
453.10  300 additional diversion allocations 
453.11  that are included in the February 2003 
453.12  forecast for the fiscal years that 
453.13  begin on July 1, 2003, and July 1, 2004.
453.14  [MANAGE THE GROWTH IN THE TBI WAIVER.] 
453.15  During the fiscal years beginning on 
453.16  July 1, 2003, and July 1, 2004, the 
453.17  commissioner shall allocate money for 
453.18  home and community-based programs 
453.19  covered under Minnesota Statutes, 
453.20  section 256B.49, to ensure a reduction 
453.21  in state spending that is equivalent to 
453.22  limiting the caseload growth of the TBI 
453.23  waiver to 150 in each year of the 
453.24  biennium.  Priorities for the 
453.25  allocation of funds shall be for 
453.26  individuals anticipated to be 
453.27  discharged from institutional settings 
453.28  or who are at imminent risk of a 
453.29  placement in an institutional setting. 
453.30  [TARGETED CASE MANAGEMENT FOR HOME CARE 
453.31  RECIPIENTS.] Implementation of the 
453.32  targeted case management benefit for 
453.33  home care recipients, according to 
453.34  Minnesota Statutes, section 256B.0621, 
453.35  subdivisions 2, 3, 5, 6, 7, 9, and 10, 
453.36  will be delayed until July 1, 2005. 
453.37  [COMMON SERVICE MENU.] Implementation 
453.38  of the common service menu option 
453.39  within the home and community-based 
453.40  waivers, according to Minnesota 
453.41  Statutes, section 256B.49, subdivision 
453.42  16, will be delayed until July 1, 2005. 
453.43  (g) Medical Assistance Long-term 
453.44  Care Facilities Grants 
453.45     545,401,000    503,624,000
453.46  [CASH FLOW LOANS.] Of this 
453.47  appropriation, $2,000,000 in fiscal 
453.48  year 2004 is for interest-free cash 
453.49  flow loans to nursing facilities 
453.50  adversely affected by Minnesota 
453.51  Statutes, section 256B.431, subdivision 
453.52  2t.  Loans under this paragraph must be 
453.53  repaid upon the receipt of Medicare 
453.54  reimbursements for bad debt reported as 
453.55  a result of subdivision 2t, or by June 
453.56  30, 2004, whichever occurs first. 
453.57  [MORATORIUM EXCEPTIONS.] During fiscal 
453.58  year 2005, the commissioner of health 
453.59  may approve moratorium exception 
453.60  projects under Minnesota Statutes, 
453.61  section 144A.073, for which the full 
454.1   annualized state share of medical 
454.2   assistance costs does not exceed 
454.3   $220,000. 
454.4   (h) Alternative Care Grants 
454.5       83,270,000     77,359,000
454.6   [ALTERNATIVE CARE TRANSFER.] Any money 
454.7   allocated to the alternative care 
454.8   program that is not spent for the 
454.9   purposes indicated does not cancel but 
454.10  shall be transferred to the medical 
454.11  assistance account. 
454.12  [ALTERNATIVE CARE APPROPRIATION.] The 
454.13  commissioner may expend the money 
454.14  appropriated for the alternative care 
454.15  program for that purpose in either year 
454.16  of the biennium. 
454.17  [ALTERNATIVE CARE IMPLEMENTATION OF 
454.18  CHANGES TO ELIGIBILITY.] Changes to 
454.19  Minnesota Statutes, section 256B.0913, 
454.20  subdivision 4, paragraph (d), and 
454.21  subdivision 12, are effective July 1, 
454.22  2003, for all persons found eligible 
454.23  for the alternative care program on or 
454.24  after July 1, 2003.  All recipients of 
454.25  alternative care funding as of June 30, 
454.26  2003, shall be subject to Minnesota 
454.27  Statutes, section 256B.0913, 
454.28  subdivision 4, paragraph (d), and 
454.29  subdivision 12, on the annual 
454.30  reassessment and review of their 
454.31  eligibility after July 1, 2003, but no 
454.32  later than January 1, 2004. 
454.33  (i) Group Residential Housing Grants 
454.34      95,096,000     81,625,000
454.35  [GROUP RESIDENTIAL HOUSING COSTS 
454.36  REFINANCED.] (1) Effective July 1, 
454.37  2004, the commissioner shall increase 
454.38  the home and community-based service 
454.39  rates and county allocations provided 
454.40  to programs for persons with 
454.41  disabilities established under section 
454.42  1915(c) of the Social Security Act to 
454.43  the extent that these programs will be 
454.44  paying for the costs above the rate 
454.45  established in Minnesota Statutes, 
454.46  section 256I.05, subdivision 1. 
454.47  (2) For persons in receipt of services 
454.48  under Minnesota Statutes, section 
454.49  256B.0915, who reside in licensed adult 
454.50  foster care beds for which a 
454.51  supplemental room and board payment was 
454.52  being made under Minnesota Statutes, 
454.53  section 256I.05, subdivision 1, 
454.54  counties may request an exception to 
454.55  the individual caps specified in 
454.56  Minnesota Statutes, section 256B.0915, 
454.57  subdivision 3, paragraph (b), not to 
454.58  exceed the difference between the 
454.59  individual cap and the client's monthly 
454.60  service expenditures plus the amount of 
454.61  the supplemental room and board rate.  
454.62  The county must submit a request to 
455.1   exceed the individual cap to the 
455.2   commissioner for approval. 
455.3   (j) Chemical Dependency
455.4   Entitlement Grants 
455.5       49,673,000     50,848,000
455.6   (k) Chemical Dependency Nonentitlement 
455.7   Grants 
455.8        6,080,000      6,065,000
455.9   Subd. 10.  Continuing Care Management 
455.10                Summary by Fund
455.11  General              21,374,000    21,114,000
455.12  State Government 
455.13  Special Revenue         119,000       119,000
455.14  Lottery Prize Fund      148,000       148,000
455.15  Subd. 11.  Economic Support Grants 
455.16                Summary by Fund
455.17  General             139,832,000   122,511,000
455.18  Federal TANF        196,911,000   203,548,000
455.19  The amounts that may be spent from this 
455.20  appropriation for each purpose are as 
455.21  follows: 
455.22  (a) Minnesota Family Investment Program 
455.23                Summary by Fund
455.24  General              64,138,000    45,212,000
455.25  Federal TANF        152,428,000   159,500,000
455.26  (b) Work Grants 
455.27                Summary by Fund
455.28  General               9,440,000     9,440,000
455.29  Federal TANF         44,223,000    43,788,000
455.30  [SUPPORTED WORK.] (a) $3,065,000 is 
455.31  appropriated from the TANF fund to the 
455.32  commissioner for the fiscal year ending 
455.33  July 30, 2005, for allocation to 
455.34  counties and tribes that submit a plan 
455.35  that describes the county's supported 
455.36  work program under Minnesota Statutes, 
455.37  section 256J.425, subdivision 4, 
455.38  paragraph (b), clause (5), and provides 
455.39  the number of individuals to be served 
455.40  in the supported work program.  This 
455.41  appropriation shall become part of base 
455.42  level funding for the biennium 
455.43  beginning July 1, 2005. 
455.44  (b) Counties and tribes that submit a 
455.45  supported work plan that is approved by 
455.46  the commissioner shall receive an 
455.47  allocation based on the average 
456.1   proportion of the MFIP case-load that 
456.2   has received MFIP assistance for 48 out 
456.3   of the last 60 months, as sampled on 
456.4   March 31, June 30, September 30, and 
456.5   December 31 of the previous calendar 
456.6   year, less the number of child only 
456.7   cases and cases where all the 
456.8   caregivers are age 60 or over, provided 
456.9   the county documents the need for 
456.10  supported work.  Two-parent cases, with 
456.11  the exception of those with a caregiver 
456.12  age 60 or over, will be multiplied by a 
456.13  factor of two. 
456.14  (c) Economic Support Grants - Other 
456.15  Assistance 
456.16       4,372,000      4,700,000
456.17  [SUPPORTIVE HOUSING.] Of the general 
456.18  fund appropriation, $600,000 each year 
456.19  is to provide services to families who 
456.20  are participating in the supportive 
456.21  housing and managed care pilot project 
456.22  under Minnesota Statutes, section 
456.23  256K.25.  This appropriation shall not 
456.24  become part of base level funding for 
456.25  the biennium beginning July 1, 2005. 
456.26  (d) Child Support Enforcement Grants 
456.27                Summary by Fund
456.28  General               4,139,000     4,139,000
456.29  TANF                    260,000       260,000
456.30  (e) General Assistance Grants
456.31      27,095,000     26,969,000
456.32  [GENERAL ASSISTANCE STANDARD.] The 
456.33  commissioner shall set the monthly 
456.34  standard of assistance for general 
456.35  assistance units consisting of an adult 
456.36  recipient who is childless and 
456.37  unmarried or living apart from parents 
456.38  or a legal guardian at $203.  The 
456.39  commissioner may reduce this amount 
456.40  according to Laws 1997, chapter 85, 
456.41  article 3, section 54. 
456.42  (f) Minnesota Supplemental Aid Grants 
456.43      30,398,000     31,801,000
456.44  (g) Refugee Services Grants
456.45         250,000        250,000
456.46  Subd. 12.  Economic Support
456.47  Management 
456.48                Summary by Fund
456.49  General              38,755,000    39,167,000
456.50  Health Care Access    1,349,000     1,349,000
456.51  Federal TANF            368,000       368,000
457.1   The amounts that may be spent from this 
457.2   appropriation for each purpose are as 
457.3   follows: 
457.4   (a) Economic Support 
457.5   Policy Administration
457.6                 Summary by Fund
457.7   General               5,224,000     5,451,000
457.8   Federal TANF            368,000       368,000
457.9   (b) Economic Support 
457.10  Operations 
457.11                Summary by Fund
457.12  General              33,531,000    33,716,000
457.13  Health Care Access    1,349,000     1,349,000
457.14  [ELECTRONIC BENEFIT TRANSFER 
457.15  TRANSACTION COSTS.] Notwithstanding the 
457.16  provisions of Laws 1998, chapter 407, 
457.17  article 6, section 116, the 
457.18  commissioner shall not reimburse 
457.19  retailers for electronic benefit 
457.20  transfer transaction costs. 
457.21  [CHILD SUPPORT PAYMENT CENTER.] 
457.22  Payments to the commissioner from other 
457.23  governmental units, private 
457.24  enterprises, and individuals for 
457.25  services performed by the child support 
457.26  payment center must be deposited in the 
457.27  state systems account authorized under 
457.28  Minnesota Statutes, section 256.014.  
457.29  These payments are appropriated to the 
457.30  commissioner for the operation of the 
457.31  child support payment center or system, 
457.32  according to Minnesota Statutes, 
457.33  section 256.014. 
457.34  [FINANCIAL INSTITUTION DATA MATCH AND 
457.35  PAYMENT OF FEES.] The commissioner is 
457.36  authorized to allocate up to $310,000 
457.37  each year in fiscal year 2004 and 
457.38  fiscal year 2005 from the PRISM special 
457.39  revenue account to make payments to 
457.40  financial institutions in exchange for 
457.41  performing data matches between account 
457.42  information held by financial 
457.43  institutions and the public authority's 
457.44  database of child support obligors as 
457.45  authorized by Minnesota Statutes, 
457.46  section 13B.06, subdivision 7. 
457.47  Sec. 3.  COMMISSIONER OF CHILDREN,
457.48  FAMILIES, AND LEARNING
457.49  [APPROPRIATIONS.] The sums indicated in 
457.50  this section are appropriated from the 
457.51  general fund to the department of 
457.52  children, families, and learning for 
457.53  the fiscal years designated. 
457.54  Subdivision 1.  Total
457.55  Appropriation                        131,093,000    131,562,000 
457.56  [TRANSFER OF RESERVES.] On July 1, 
458.1   2003, the commissioner of finance shall 
458.2   transfer $6,000,000 of the contingency 
458.3   reserve within the employee insurance 
458.4   trust fund maintained under Minnesota 
458.5   Statutes, section 43A.30, subdivision 
458.6   6, to the general fund. 
458.7   Subd. 2.  Child Care Programs        122,315,000    123,284,000
458.8   (a) Basic Sliding Fee Child Care    
458.9       42,528,000    41,774,000
458.10  (b) MFIP Child Care  
458.11      78,247,000    79,970,000
458.12  (c) Child Care Program Integrity
458.13         175,000        175,000
458.14  (d) Child Care Development
458.15       1,365,000      1,365,000
458.16  Subd. 3.  Self-Sufficiency and
458.17  Long-Life Learning                     8,778,000      8,278,000
458.18  (a) Minnesota Economic Opportunity Grants
458.19       7,000,000      7,000,000
458.20  (b) Food Shelf Programs
458.21       1,278,000      1,278,000
458.22  (c) Family Assets for Independents
458.23         500,000        -0- 
458.24  Sec. 4.  COMMISSIONER OF HEALTH
458.25  Subdivision 1.  Total
458.26  Appropriation                        120,499,000    119,916,000 
458.27                Summary by Fund
458.28  General              81,346,000    81,026,000
458.29  State Government
458.30  Special Revenue      32,880,000    32,617,000
458.31  Health Care Access    6,273,000     6,273,000
458.32  Subd. 2.  Health Improvement 
458.33                Summary by Fund
458.34  General              65,788,000    65,528,000
458.35  State Government
458.36  Special Revenue       1,987,000     1,987,000
458.37  Health Care Access    3,510,000     3,510,000
458.38  [TOBACCO PREVENTION ENDOWMENT FUND 
458.39  TRANSFERS.] (a) On July 1, 2003, the 
458.40  commissioner of finance shall transfer 
458.41  $7,400,000 from the tobacco use 
458.42  prevention and local public health 
458.43  endowment expendable trust fund to the 
459.1   general fund. 
459.2   (b) Notwithstanding Minnesota Statutes, 
459.3   section 16A.62, any remaining 
459.4   unexpended balance in the fund after 
459.5   the transfer in paragraph (a) shall be 
459.6   transferred to the miscellaneous 
459.7   special revenue fund and dedicated to 
459.8   the commissioner of health for a youth 
459.9   tobacco prevention program.  These 
459.10  funds are available until expended. 
459.11  [TRANSFER OF ENDOWMENT FUNDS.] On July 
459.12  1, 2003, the commissioner of finance 
459.13  shall transfer the tobacco use 
459.14  prevention and local public health 
459.15  endowment fund and the medical 
459.16  education endowment fund to the general 
459.17  fund. 
459.18  [TOBACCO USE PREVENTION AND PUBLIC 
459.19  HEALTH GRANTS.] (a) Of the general fund 
459.20  appropriation, $7,500,000 each year is 
459.21  for the following purposes: 
459.22  (1) $3,750,000 each year is for local 
459.23  tobacco prevention grants under 
459.24  Minnesota Statutes, section 144.396, 
459.25  subdivision 6; and 
459.26  (2) $3,750,000 each year is for 
459.27  distribution under Minnesota Statutes, 
459.28  section 144.396, subdivision 7, for 
459.29  local public health promotion and 
459.30  protection activities. 
459.31  (b) Of the amount appropriated under 
459.32  paragraph (a), the commissioner may 
459.33  retain up to $150,000 each year for 
459.34  administrative costs. 
459.35  [FETAL ALCOHOL.] Of the appropriation 
459.36  from the general fund, $1,350,000 each 
459.37  year is to the commissioner to contract 
459.38  with the Minnesota Organization on 
459.39  Fetal Alcohol Syndrome to award grants 
459.40  for fetal alcohol spectrum disorder 
459.41  (FASD) programs and services, 
459.42  including, but not limited to: 
459.43  (1) professional training and education 
459.44  about FASD to health care, education, 
459.45  human service, judicial, and 
459.46  correctional professionals; 
459.47  (2) grants to community organizations 
459.48  and coalitions to provide FASD 
459.49  prevention and intervention services; 
459.50  (3) FASD diagnostic clinics that 
459.51  utilize a multidisciplinary team to 
459.52  provide a complete and comprehensive 
459.53  assessment of children and adults with 
459.54  FASD; 
459.55  (4) intensive, one-to-one services for 
459.56  high-risk women who are heavy drinkers 
459.57  or drug users, are not connected to 
459.58  existing community resources, receive 
459.59  little or no prenatal care, and have 
459.60  delivered one baby affected by prenatal 
460.1   substance abuse; and 
460.2   (5) programs and services specifically 
460.3   designed for those affected by FASD. 
460.4   The Minnesota Organization on Fetal 
460.5   Alcohol Syndrome may retain five 
460.6   percent of the appropriation for 
460.7   administrative costs.  Any unencumbered 
460.8   balance in the first year does not 
460.9   cancel but is available for the second 
460.10  year. 
460.11  Subd. 3.  Health Quality and 
460.12  Access 
460.13                Summary by Fund
460.14  General               1,017,000     1,017,000
460.15  State Government
460.16  Special Revenue       8,888,000     8,888,000
460.17  Health Care Access    2,763,000     2,763,000
460.18  [STATE GOVERNMENT SPECIAL REVENUE FUND 
460.19  TRANSFERS.] On July 1, 2003, the 
460.20  commissioner of finance shall transfer 
460.21  $3,000,000 from the state government 
460.22  special revenue fund to the general 
460.23  fund. 
460.24  Subd. 4.  Health Protection 
460.25                Summary by Fund
460.26  General               9,309,000     9,309,000
460.27  State Government
460.28  Special Revenue      22,005,000    21,742,000
460.29  [HIV/STI EDUCATION.] Of the general 
460.30  fund appropriation, $150,000 may be 
460.31  transferred to the commissioner of 
460.32  children, families and learning for 
460.33  regional training sites for HIV/STI 
460.34  education in schools established under 
460.35  Laws 1997, First Special Session 
460.36  chapter 4, article 6, section 18, and 
460.37  to implement Minnesota Statutes, 
460.38  section 121A.23, subdivision 1.  Funds 
460.39  may support three of the existing 
460.40  regional sites selected in a manner to 
460.41  achieve geographic balance.  This 
460.42  appropriation is available until June 
460.43  30, 2005. 
460.44  Subd. 5.  Management and Support 
460.45  Services 
460.46       5,232,000      5,226,000
460.47  Sec. 5.  VETERANS NURSING 
460.48  HOMES BOARD                           30,030,000     30,030,000 
460.49  [VETERANS HOMES SPECIAL REVENUE 
460.50  ACCOUNT.] The general fund 
460.51  appropriations made to the board may be 
460.52  transferred to a veterans homes special 
460.53  revenue account in the special revenue 
460.54  fund in the same manner as other 
461.1   receipts are deposited according to 
461.2   Minnesota Statutes, section 198.34, and 
461.3   are appropriated to the board for the 
461.4   operation of board facilities and 
461.5   programs. 
461.6   Sec. 6.  HEALTH-RELATED BOARDS 
461.7   Subdivision 1.  Total
461.8   Appropriation                         11,378,000     11,298,000 
461.9                 Summary by Fund
461.10  General              11,314,000    11,298,000
461.11  HCAF                     64,000       -0-    
461.12  [STATE GOVERNMENT SPECIAL REVENUE 
461.13  FUND.] The appropriations in this 
461.14  section are from the state government 
461.15  special revenue fund, except where 
461.16  noted. 
461.17  [NO SPENDING IN EXCESS OF REVENUES.] 
461.18  The commissioner of finance shall not 
461.19  permit the allotment, encumbrance, or 
461.20  expenditure of money appropriated in 
461.21  this section in excess of the 
461.22  anticipated biennial revenues or 
461.23  accumulated surplus revenues from fees 
461.24  collected by the boards.  Neither this 
461.25  provision nor Minnesota Statutes, 
461.26  section 214.06, applies to transfers 
461.27  from the general contingent account. 
461.28  [STATE GOVERNMENT SPECIAL REVENUE FUND 
461.29  TRANSFERS.] On July 1, 2003, the 
461.30  commissioner of finance shall transfer 
461.31  $7,500,000 from the state government 
461.32  special revenue fund to the general 
461.33  fund. 
461.34  Subd. 2.  Board of Chiropractic
461.35  Examiners                       
461.36         384,000        384,000
461.37  [CONTESTED CASE EXPENSES.] In fiscal 
461.38  year 2003, $70,000 in state government 
461.39  special revenue funds is transferred 
461.40  from Laws 2001, chapter 10, article 1, 
461.41  section 33, to the board of 
461.42  chiropractic examiners to pay for 
461.43  contested case activity.  These funds 
461.44  are available until September 30, 2003. 
461.45  Subd. 3.  Board of Dentistry                                    
461.46                Summary by Fund
461.47  State Government Special    
461.48  Revenue Fund            970,000        954,000 
461.49  Health Care                 
461.50  Access Fund              64,000        -0-     
461.51  Subd. 4.  Board of Dietetic and 
461.52  Nutrition Practice           
461.53         101,000        101,000
462.1   Subd. 5.  Board of Marriage and
462.2   Family Therapy      
462.3          118,000        118,000
462.4   Subd. 6.  Board of Medical
462.5   Practice                          
462.6        3,498,000      3,498,000
462.7   Subd. 7.  Board of Nursing    
462.8        2,405,000      2,405,000
462.9   Subd. 8.  Board of Nursing
462.10  Home Administrators               
462.11         198,000        198,000
462.12  Subd. 9.  Board of Optometry   
462.13          96,000         96,000 
462.14  Subd. 10.  Board of Pharmacy  
462.15       1,386,000      1,386,000
462.16  [ADMINISTRATIVE SERVICES UNIT.] Of this 
462.17  appropriation, $359,000 the first year 
462.18  and $359,000 the second year are for 
462.19  the health boards administrative 
462.20  services unit.  The administrative 
462.21  services unit may receive and expend 
462.22  reimbursements for services performed 
462.23  for other agencies. 
462.24  Subd. 11.  Board of Physical
462.25  Therapy                           
462.26         197,000        197,000
462.27  Subd. 12.  Board of Podiatry   
462.28          45,000         45,000
462.29  Subd. 13.  Board of Psychology  
462.30         680,000        680,000  
462.31  Subd. 14.  Board of Social 
462.32  Work                              
462.33       1,073,000      1,073,000
462.34  Subd. 15.  Board of Veterinary
462.35  Medicine                          
462.36         163,000        163,000
462.37  Sec. 7.  EMERGENCY MEDICAL SERVICES
462.38  REGULATORY BOARD 
462.39   Subdivision 1.  Total
462.40  Appropriation                          2,787,000      2,787,000
462.41                Summary by Fund
462.42  General               2,241,000     2,241,000
462.43  State Government
462.44  Special Revenue         546,000       546,000
463.1   [HEALTH PROFESSIONAL SERVICES 
463.2   ACTIVITY.] $546,000 each year from the 
463.3   state government special revenue fund 
463.4   is for the health professional services 
463.5   activity. 
463.6   [ROYALTY PAYMENTS DEDICATED TO BOARD.] 
463.7   Royalty payments from the sale of the 
463.8   Internet-based ambulance reporting 
463.9   program are appropriated to the board 
463.10  and shall remain available until 
463.11  expended.  Notwithstanding section 14, 
463.12  this provision shall not expire. 
463.13  [EMERGENCY MEDICAL SERVICES REGIONAL 
463.14  GRANTS.] Of this appropriation, 
463.15  $417,000 each year is for the purposes 
463.16  of Minnesota Statutes, section 144E.50. 
463.17  [AMBULANCE TRAINING GRANT CARRYFORWARD 
463.18  AND TRANSFER.] (a) Effective for fiscal 
463.19  year 2003 and succeeding fiscal years, 
463.20  any unspent portion of the 
463.21  appropriation for ambulance training 
463.22  grants shall not cancel but shall carry 
463.23  forward and be used in the following 
463.24  fiscal year for the purposes of 
463.25  Minnesota Statutes, section 144E.50.  
463.26  The board shall not retain any portion 
463.27  of the appropriation carried forward 
463.28  for administrative costs. 
463.29  (b) Notwithstanding section 14, this 
463.30  provision shall not expire. 
463.31  (c) This provision is effective the day 
463.32  following final enactment. 
463.33  Sec. 8.  COUNCIL ON DISABILITY           607,000        607,000
463.34  Sec. 9.  OMBUDSMAN FOR MENTAL HEALTH 
463.35  AND MENTAL RETARDATION                 1,462,000      1,462,000
463.36  Sec. 10.  OMBUDSMAN FOR 
463.37  FAMILIES                                 245,000        245,000 
463.38     Sec. 11.  [TRANSFERS.] 
463.39     Subdivision 1.  [GRANTS.] The commissioner of human 
463.40  services, with the approval of the commissioner of finance, and 
463.41  after notification of the chair of the senate health, human 
463.42  services and corrections budget division and the chair of the 
463.43  house health and human services finance committee, may transfer 
463.44  unencumbered appropriation balances for the biennium ending June 
463.45  30, 2005, within fiscal years among the MFIP, general 
463.46  assistance, general assistance medical care, medical assistance, 
463.47  Minnesota supplemental aid, and group residential housing 
463.48  programs, and the entitlement portion of the chemical dependency 
463.49  consolidated treatment fund, and between fiscal years of the 
464.1   biennium. 
464.2      Subd. 2.  [ADMINISTRATION.] Positions, salary money, and 
464.3   nonsalary administrative money may be transferred within the 
464.4   departments of human services and health and within the programs 
464.5   operated by the veterans nursing homes board as the 
464.6   commissioners and the board consider necessary, with the advance 
464.7   approval of the commissioner of finance.  The commissioner or 
464.8   the board shall inform the chairs of the house health and human 
464.9   services finance committee and the senate health, human services 
464.10  and corrections budget division quarterly about transfers made 
464.11  under this provision. 
464.12     Subd. 3.  [PROHIBITED TRANSFERS.] Grant money shall not be 
464.13  transferred to operations within the departments of human 
464.14  services and health and within the programs operated by the 
464.15  veterans nursing homes board without the approval of the 
464.16  legislature. 
464.17     Sec. 12.  [INDIRECT COSTS NOT TO FUND PROGRAMS.] 
464.18     The commissioners of health and of human services shall not 
464.19  use indirect cost allocations to pay for the operational costs 
464.20  of any program for which they are responsible. 
464.21     Sec. 13.  [CARRYOVER LIMITATION.] 
464.22     The appropriations in this article which are allowed to be 
464.23  carried forward from fiscal year 2004 to fiscal year 2005 shall 
464.24  not become part of the base level funding for the 2006-2007 
464.25  biennial budget, unless specifically directed by the legislature.
464.26     Sec. 14.  [SUNSET OF UNCODIFIED LANGUAGE.] 
464.27     All uncodified language contained in this article expires 
464.28  on June 30, 2005, unless a different expiration date is explicit.
464.29     Sec. 15.  [REPEALER.] 
464.30     Laws 2002, chapter 374, article 9, section 8, is repealed 
464.31  effective upon final enactment. 
464.32     Sec. 16.  [EFFECTIVE DATE.] 
464.33     The provisions in this article are effective July 1, 2003, 
464.34  unless a different effective date is specified. 
464.35                             ARTICLE 13
464.36           HEALTH AND HUMAN SERVICES FORECAST ADJUSTMENTS 
465.1   Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 
465.2      The dollar amounts shown in the columns marked 
465.3   "APPROPRIATIONS" are added to or, if shown in parentheses, are 
465.4   subtracted from the appropriations in Laws 2001, First Special 
465.5   Session chapter 9, as amended by Laws 2002, chapter 220, and 
465.6   Laws 2002, chapter 374, and are appropriated from the general 
465.7   fund, or any other fund named, to the agencies and for the 
465.8   purposes specified in this article, to be available for the 
465.9   fiscal year indicated for each purpose.  The figure "2003" used 
465.10  in this article means that the appropriation or appropriations 
465.11  listed under them are available for the fiscal year ending June 
465.12  30, 2003. 
465.13                          SUMMARY BY FUND
465.14                                                         2003 
465.15  General                                            $103,756,000
465.16  Health Care Access                                   (1,492,000) 
465.17  Federal TANF                                         20,419,000 
465.18                                             APPROPRIATIONS 
465.19                                         Available for the Year 
465.20                                          Ending June 30, 2003
465.21  Sec. 2.  COMMISSIONER OF 
465.22  HUMAN SERVICES
465.23  Subdivision 1.  Total 
465.24  Appropriation                                      $128,203,000 
465.25                Summary by Fund
465.26  General                           109,276,000
465.27  Health Care Access                 (1,492,000)
465.28  Federal TANF                       20,419,000
465.29  Subd. 2.  Administrative 
465.30  Reimbursement/Pass-through                             1,180,000
465.31  Subd. 3.  Basic Health Care 
465.32  Grants 
465.33  General                                              59,364,000
465.34  Health Care Access                                   (1,492,000)
465.35  The amounts that may be spent from this 
465.36  appropriation for each purpose are as 
465.37  follows: 
465.38  (a) MinnesotaCare Grants 
465.39  Health Care Access                                   (1,492,000) 
465.40  (b) MA Basic Health Care Grants - 
466.1   Families and Children 
466.2   General                                              14,708,000 
466.3   (c) MA Basic Health Care Grants - 
466.4   Elderly and Disabled 
466.5   General                                              15,137,000 
466.6   (d) General Assistance Medical Care 
466.7   Grants 
466.8   General                                              29,519,000 
466.9   Subd. 4.  Continuing Care Grants 
466.10  General                                              56,615,000 
466.11  The amounts that may be spent from this 
466.12  appropriation for each purpose are as 
466.13  follows: 
466.14  (a) Medical Assistance Long-Term Care 
466.15  Waivers and Home Care Grants 
466.16  General                                              57,388,000 
466.17  (b) Medical Assistance Long-Term Care 
466.18  Facilities Grants 
466.19  General                                                 678,000 
466.20  (c) Group Residential Housing Grants 
466.21  General                                              (1,451,000) 
466.22  Subd. 5.  Economic Support Grants 
466.23  General                                              (6,703,000)
466.24  Federal TANF                                         19,239,000 
466.25  The amounts that may be spent from the 
466.26  appropriation for each purpose are as 
466.27  follows: 
466.28  (a) Assistance to Families Grants 
466.29  General                                              (9,306,000) 
466.30  Federal TANF                                         19,239,000 
466.31  (b) General Assistance Grants 
466.32  General                                               3,491,000 
466.33  (c) Minnesota Supplemental Aid Grants 
466.34  General                                                (888,000) 
466.35  Sec. 3.  COMMISSIONER OF HEALTH
466.36  Subdivision 1.  Total Appropriation                  (5,520,000)
466.37                Summary by Fund
466.38  General                                              (5,520,000) 
466.39  Subd. 2.  Access and Quality Improvement             (5,520,000)
466.40     Sec. 4.  [EFFECTIVE DATE.] 
467.1      Sections 1 to 3 are effective the day following final 
467.2   enactment. 
467.3                              ARTICLE 14
467.4                     DEPARTMENT OF HUMAN SERVICES 
467.5                    HEALTH CARE POLICY AMENDMENTS
467.6      Section 1.  [144A.351] [BALANCING LONG-TERM CARE:  REPORT 
467.7   REQUIRED.] 
467.8      The commissioners of health and human services, with the 
467.9   cooperation of counties and regional entities, shall prepare a 
467.10  report to the legislature by January 15, 2004, and biennially 
467.11  thereafter, regarding the status of the full range of long-term 
467.12  care services for the elderly in Minnesota.  The report shall 
467.13  address: 
467.14     (1) demographics and need for long-term care in Minnesota; 
467.15     (2) summary of county and regional reports on long-term 
467.16  care gaps, surpluses, imbalances, and corrective action plans; 
467.17     (3) status of long-term care services by county and region 
467.18  including: 
467.19     (i) changes in availability of the range of long-term care 
467.20  services and housing options; 
467.21     (ii) access problems regarding long-term care; and 
467.22     (iii) comparative measures of long-term care availability 
467.23  and progress over time; and 
467.24     (4) recommendations regarding goals for the future of 
467.25  long-term care services, policy changes, and resource needs. 
467.26     Sec. 2.  Minnesota Statutes 2002, section 245A.035, 
467.27  subdivision 3, is amended to read: 
467.28     Subd. 3.  [REQUIREMENTS FOR EMERGENCY LICENSE.] Before an 
467.29  emergency license may be issued, the following requirements must 
467.30  be met: 
467.31     (1) the county agency must conduct an initial inspection of 
467.32  the premises where the foster care is to be provided to ensure 
467.33  the health and safety of any child placed in the home.  The 
467.34  county agency shall conduct the inspection using a form 
467.35  developed by the commissioner; 
467.36     (2) at the time of the inspection or placement, whichever 
468.1   is earlier, the relative being considered for an emergency 
468.2   license shall receive an application form for a child foster 
468.3   care license; 
468.4      (3) whenever possible, prior to placing the child in the 
468.5   relative's home, the relative being considered for an emergency 
468.6   license shall provide the information required by section 
468.7   245A.04, subdivision 3, paragraph (b) (k); and 
468.8      (4) if the county determines, prior to the issuance of an 
468.9   emergency license, that anyone requiring a background study may 
468.10  be disqualified under section 245A.04, and the disqualification 
468.11  is one which the commissioner cannot set aside, an emergency 
468.12  license shall not be issued. 
468.13     Sec. 3.  Minnesota Statutes 2002, section 245A.04, 
468.14  subdivision 3b, is amended to read: 
468.15     Subd. 3b.  [RECONSIDERATION OF DISQUALIFICATION.] (a) The 
468.16  individual who is the subject of the disqualification may 
468.17  request a reconsideration of the disqualification.  
468.18     The individual must submit the request for reconsideration 
468.19  to the commissioner in writing.  A request for reconsideration 
468.20  for an individual who has been sent a notice of disqualification 
468.21  under subdivision 3a, paragraph (b), clause (1) or (2), must be 
468.22  submitted within 30 calendar days of the disqualified 
468.23  individual's receipt of the notice of disqualification.  Upon 
468.24  showing that the information in clause (1) or (2) cannot be 
468.25  obtained within 30 days, the disqualified individual may request 
468.26  additional time, not to exceed 30 days, to obtain that 
468.27  information.  A request for reconsideration for an individual 
468.28  who has been sent a notice of disqualification under subdivision 
468.29  3a, paragraph (b), clause (3), must be submitted within 15 
468.30  calendar days of the disqualified individual's receipt of the 
468.31  notice of disqualification.  An individual who was determined to 
468.32  have maltreated a child under section 626.556 or a vulnerable 
468.33  adult under section 626.557, and who was disqualified under this 
468.34  section on the basis of serious or recurring maltreatment, may 
468.35  request reconsideration of both the maltreatment and the 
468.36  disqualification determinations.  The request for 
469.1   reconsideration of the maltreatment determination and the 
469.2   disqualification must be submitted within 30 calendar days of 
469.3   the individual's receipt of the notice of disqualification.  
469.4   Removal of a disqualified individual from direct contact shall 
469.5   be ordered if the individual does not request reconsideration 
469.6   within the prescribed time, and for an individual who submits a 
469.7   timely request for reconsideration, if the disqualification is 
469.8   not set aside.  The individual must present information showing 
469.9   that: 
469.10     (1) the information the commissioner relied upon in 
469.11  determining that the underlying conduct giving rise to the 
469.12  disqualification occurred, and for maltreatment, that the 
469.13  maltreatment was serious or recurring, is incorrect; or 
469.14     (2) the subject of the study does not pose a risk of harm 
469.15  to any person served by the applicant, license holder, or 
469.16  registrant under section 144A.71, subdivision 1. 
469.17     (b) The commissioner shall rescind the disqualification if 
469.18  the commissioner finds that the information relied on to 
469.19  disqualify the subject is incorrect.  The commissioner may set 
469.20  aside the disqualification under this section if the 
469.21  commissioner finds that the individual does not pose a risk of 
469.22  harm to any person served by the applicant, license holder, or 
469.23  registrant under section 144A.71, subdivision 1.  In determining 
469.24  that an individual does not pose a risk of harm, the 
469.25  commissioner shall consider the nature, severity, and 
469.26  consequences of the event or events that lead to 
469.27  disqualification, whether there is more than one disqualifying 
469.28  event, the age and vulnerability of the victim at the time of 
469.29  the event, the harm suffered by the victim, the similarity 
469.30  between the victim and persons served by the program, the time 
469.31  elapsed without a repeat of the same or similar event, 
469.32  documentation of successful completion by the individual studied 
469.33  of training or rehabilitation pertinent to the event, and any 
469.34  other information relevant to reconsideration.  In reviewing a 
469.35  disqualification under this section, the commissioner shall give 
469.36  preeminent weight to the safety of each person to be served by 
470.1   the license holder, applicant, or registrant under section 
470.2   144A.71, subdivision 1, over the interests of the license 
470.3   holder, applicant, or registrant under section 144A.71, 
470.4   subdivision 1. 
470.5      (c) Unless the information the commissioner relied on in 
470.6   disqualifying an individual is incorrect, the commissioner may 
470.7   not set aside the disqualification of an individual in 
470.8   connection with a license to provide family day care for 
470.9   children, foster care for children in the provider's own home, 
470.10  or foster care or day care services for adults in the provider's 
470.11  own home if: 
470.12     (1) less than ten years have passed since the discharge of 
470.13  the sentence imposed for the offense; and the individual has 
470.14  been convicted of a violation of any offense listed in sections 
470.15  609.165 (felon ineligible to possess firearm), criminal 
470.16  vehicular homicide under 609.21 (criminal vehicular homicide and 
470.17  injury), 609.215 (aiding suicide or aiding attempted suicide), 
470.18  felony violations under 609.223 or 609.2231 (assault in the 
470.19  third or fourth degree), 609.713 (terroristic threats), 609.235 
470.20  (use of drugs to injure or to facilitate crime), 609.24 (simple 
470.21  robbery), 609.255 (false imprisonment), 609.562 (arson in the 
470.22  second degree), 609.71 (riot), 609.498, subdivision 1 or 1a 
470.23  1b (aggravated first degree or first degree tampering with a 
470.24  witness), burglary in the first or second degree under 609.582 
470.25  (burglary), 609.66 (dangerous weapon), 609.665 (spring guns), 
470.26  609.67 (machine guns and short-barreled shotguns), 609.749, 
470.27  subdivision 2 (gross misdemeanor harassment; stalking), 152.021 
470.28  or 152.022 (controlled substance crime in the first or second 
470.29  degree), 152.023, subdivision 1, clause (3) or (4), or 
470.30  subdivision 2, clause (4) (controlled substance crime in the 
470.31  third degree), 152.024, subdivision 1, clause (2), (3), or (4) 
470.32  (controlled substance crime in the fourth degree), 609.224, 
470.33  subdivision 2, paragraph (c) (fifth-degree assault by a 
470.34  caregiver against a vulnerable adult), 609.23 (mistreatment of 
470.35  persons confined), 609.231 (mistreatment of residents or 
470.36  patients), 609.2325 (criminal abuse of a vulnerable adult), 
471.1   609.233 (criminal neglect of a vulnerable adult), 609.2335 
471.2   (financial exploitation of a vulnerable adult), 609.234 (failure 
471.3   to report), 609.265 (abduction), 609.2664 to 609.2665 
471.4   (manslaughter of an unborn child in the first or second degree), 
471.5   609.267 to 609.2672 (assault of an unborn child in the first, 
471.6   second, or third degree), 609.268 (injury or death of an unborn 
471.7   child in the commission of a crime), 617.293 (disseminating or 
471.8   displaying harmful material to minors), a felony level 
471.9   conviction involving alcohol or drug use, a gross misdemeanor 
471.10  offense under 609.324, subdivision 1 (other prohibited acts), a 
471.11  gross misdemeanor offense under 609.378 (neglect or endangerment 
471.12  of a child), a gross misdemeanor offense under 609.377 
471.13  (malicious punishment of a child), 609.72, subdivision 3 
471.14  (disorderly conduct against a vulnerable adult); or an attempt 
471.15  or conspiracy to commit any of these offenses, as each of these 
471.16  offenses is defined in Minnesota Statutes; or an offense in any 
471.17  other state, the elements of which are substantially similar to 
471.18  the elements of any of the foregoing offenses; 
471.19     (2) regardless of how much time has passed since the 
471.20  involuntary termination of parental rights under section 
471.21  260C.301 or the discharge of the sentence imposed for the 
471.22  offense, the individual was convicted of a violation of any 
471.23  offense listed in sections 609.185 to 609.195 (murder in the 
471.24  first, second, or third degree), 609.20 (manslaughter in the 
471.25  first degree), 609.205 (manslaughter in the second degree), 
471.26  609.245 (aggravated robbery), 609.25 (kidnapping), 609.561 
471.27  (arson in the first degree), 609.749, subdivision 3, 4, or 5 
471.28  (felony-level harassment; stalking), 609.228 (great bodily harm 
471.29  caused by distribution of drugs), 609.221 or 609.222 (assault in 
471.30  the first or second degree), 609.66, subdivision 1e (drive-by 
471.31  shooting), 609.855, subdivision 5 (shooting in or at a public 
471.32  transit vehicle or facility), 609.2661 to 609.2663 (murder of an 
471.33  unborn child in the first, second, or third degree), a felony 
471.34  offense under 609.377 (malicious punishment of a child), a 
471.35  felony offense under 609.324, subdivision 1 (other prohibited 
471.36  acts), a felony offense under 609.378 (neglect or endangerment 
472.1   of a child), 609.322 (solicitation, inducement, and promotion of 
472.2   prostitution), 609.342 to 609.345 (criminal sexual conduct in 
472.3   the first, second, third, or fourth degree), 609.352 
472.4   (solicitation of children to engage in sexual conduct), 617.246 
472.5   (use of minors in a sexual performance), 617.247 (possession of 
472.6   pictorial representations of a minor), 609.365 (incest), a 
472.7   felony offense under sections 609.2242 and 609.2243 (domestic 
472.8   assault), a felony offense of spousal abuse, a felony offense of 
472.9   child abuse or neglect, a felony offense of a crime against 
472.10  children, or an attempt or conspiracy to commit any of these 
472.11  offenses as defined in Minnesota Statutes, or an offense in any 
472.12  other state, the elements of which are substantially similar to 
472.13  any of the foregoing offenses; 
472.14     (3) within the seven years preceding the study, the 
472.15  individual committed an act that constitutes maltreatment of a 
472.16  child under section 626.556, subdivision 10e, and that resulted 
472.17  in substantial bodily harm as defined in section 609.02, 
472.18  subdivision 7a, or substantial mental or emotional harm as 
472.19  supported by competent psychological or psychiatric evidence; or 
472.20     (4) within the seven years preceding the study, the 
472.21  individual was determined under section 626.557 to be the 
472.22  perpetrator of a substantiated incident of maltreatment of a 
472.23  vulnerable adult that resulted in substantial bodily harm as 
472.24  defined in section 609.02, subdivision 7a, or substantial mental 
472.25  or emotional harm as supported by competent psychological or 
472.26  psychiatric evidence. 
472.27     In the case of any ground for disqualification under 
472.28  clauses (1) to (4), if the act was committed by an individual 
472.29  other than the applicant, license holder, or registrant under 
472.30  section 144A.71, subdivision 1, residing in the applicant's or 
472.31  license holder's home, or the home of a registrant under section 
472.32  144A.71, subdivision 1, the applicant, license holder, or 
472.33  registrant under section 144A.71, subdivision 1, may seek 
472.34  reconsideration when the individual who committed the act no 
472.35  longer resides in the home.  
472.36     The disqualification periods provided under clauses (1), 
473.1   (3), and (4) are the minimum applicable disqualification 
473.2   periods.  The commissioner may determine that an individual 
473.3   should continue to be disqualified from licensure or 
473.4   registration under section 144A.71, subdivision 1, because the 
473.5   license holder, applicant, or registrant under section 144A.71, 
473.6   subdivision 1, poses a risk of harm to a person served by that 
473.7   individual after the minimum disqualification period has passed. 
473.8      (d) The commissioner shall respond in writing or by 
473.9   electronic transmission to all reconsideration requests for 
473.10  which the basis for the request is that the information relied 
473.11  upon by the commissioner to disqualify is incorrect or 
473.12  inaccurate within 30 working days of receipt of a request and 
473.13  all relevant information.  If the basis for the request is that 
473.14  the individual does not pose a risk of harm, the commissioner 
473.15  shall respond to the request within 15 working days after 
473.16  receiving the request for reconsideration and all relevant 
473.17  information.  If the request is based on both the correctness or 
473.18  accuracy of the information relied on to disqualify the 
473.19  individual and the risk of harm, the commissioner shall respond 
473.20  to the request within 45 working days after receiving the 
473.21  request for reconsideration and all relevant information.  If 
473.22  the disqualification is set aside, the commissioner shall notify 
473.23  the applicant or license holder in writing or by electronic 
473.24  transmission of the decision. 
473.25     (e) Except as provided in subdivision 3c, if a 
473.26  disqualification for which reconsideration was requested is not 
473.27  set aside or is not rescinded, an individual who was 
473.28  disqualified on the basis of a preponderance of evidence that 
473.29  the individual committed an act or acts that meet the definition 
473.30  of any of the crimes listed in subdivision 3d, paragraph (a), 
473.31  clauses (1) to (4); or for failure to make required reports 
473.32  under section 626.556, subdivision 3, or 626.557, subdivision 3, 
473.33  pursuant to subdivision 3d, paragraph (a), clause (4), may 
473.34  request a fair hearing under section 256.045.  Except as 
473.35  provided under subdivision 3c, the fair hearing is the only 
473.36  administrative appeal of the final agency determination, 
474.1   specifically, including a challenge to the accuracy and 
474.2   completeness of data under section 13.04.  
474.3      (f) Except as provided under subdivision 3c, if an 
474.4   individual was disqualified on the basis of a determination of 
474.5   maltreatment under section 626.556 or 626.557, which was serious 
474.6   or recurring, and the individual has requested reconsideration 
474.7   of the maltreatment determination under section 626.556, 
474.8   subdivision 10i, or 626.557, subdivision 9d, and also requested 
474.9   reconsideration of the disqualification under this subdivision, 
474.10  reconsideration of the maltreatment determination and 
474.11  reconsideration of the disqualification shall be consolidated 
474.12  into a single reconsideration.  For maltreatment and 
474.13  disqualification determinations made by county agencies, the 
474.14  consolidated reconsideration shall be conducted by the county 
474.15  agency.  If the county agency has disqualified an individual on 
474.16  multiple bases, one of which is a county maltreatment 
474.17  determination for which the individual has a right to request 
474.18  reconsideration, the county shall conduct the reconsideration of 
474.19  all disqualifications.  Except as provided under subdivision 3c, 
474.20  if an individual who was disqualified on the basis of serious or 
474.21  recurring maltreatment requests a fair hearing on the 
474.22  maltreatment determination under section 626.556, subdivision 
474.23  10i, or 626.557, subdivision 9d, and requests a fair hearing on 
474.24  the disqualification, which has not been set aside or rescinded 
474.25  under this subdivision, the scope of the fair hearing under 
474.26  section 256.045 shall include the maltreatment determination and 
474.27  the disqualification.  Except as provided under subdivision 3c, 
474.28  a fair hearing is the only administrative appeal of the final 
474.29  agency determination, specifically, including a challenge to the 
474.30  accuracy and completeness of data under section 13.04. 
474.31     (g) In the notice from the commissioner that a 
474.32  disqualification has been set aside, the license holder must be 
474.33  informed that information about the nature of the 
474.34  disqualification and which factors under paragraph (b) were the 
474.35  bases of the decision to set aside the disqualification is 
474.36  available to the license holder upon request without consent of 
475.1   the background study subject.  With the written consent of a 
475.2   background study subject, the commissioner may release to the 
475.3   license holder copies of all information related to the 
475.4   background study subject's disqualification and the 
475.5   commissioner's decision to set aside the disqualification as 
475.6   specified in the written consent. 
475.7      Sec. 4.  Minnesota Statutes 2002, section 245A.04, 
475.8   subdivision 3d, is amended to read: 
475.9      Subd. 3d.  [DISQUALIFICATION.] (a) Upon receipt of 
475.10  information showing, or when a background study completed under 
475.11  subdivision 3 shows any of the following:  a conviction of one 
475.12  or more crimes listed in clauses (1) to (4); the individual has 
475.13  admitted to or a preponderance of the evidence indicates the 
475.14  individual has committed an act or acts that meet the definition 
475.15  of any of the crimes listed in clauses (1) to (4); or an 
475.16  investigation results in an administrative determination listed 
475.17  under clause (4), the individual shall be disqualified from any 
475.18  position allowing direct contact with persons receiving services 
475.19  from the license holder, entity identified in subdivision 3, 
475.20  paragraph (a), or registrant under section 144A.71, subdivision 
475.21  1, and for individuals studied under section 245A.04, 
475.22  subdivision 3, paragraph (c), clauses (2), (6), and (7), the 
475.23  individual shall also be disqualified from access to a person 
475.24  receiving services from the license holder: 
475.25     (1) regardless of how much time has passed since the 
475.26  involuntary termination of parental rights under section 
475.27  260C.301 or the discharge of the sentence imposed for the 
475.28  offense, and unless otherwise specified, regardless of the level 
475.29  of the conviction, the individual was convicted of any of the 
475.30  following offenses:  sections 609.185 (murder in the first 
475.31  degree); 609.19 (murder in the second degree); 609.195 (murder 
475.32  in the third degree); 609.2661 (murder of an unborn child in the 
475.33  first degree); 609.2662 (murder of an unborn child in the second 
475.34  degree); 609.2663 (murder of an unborn child in the third 
475.35  degree); 609.20 (manslaughter in the first degree); 609.205 
475.36  (manslaughter in the second degree); 609.221 or 609.222 (assault 
476.1   in the first or second degree); 609.228 (great bodily harm 
476.2   caused by distribution of drugs); 609.245 (aggravated robbery); 
476.3   609.25 (kidnapping); 609.561 (arson in the first degree); 
476.4   609.749, subdivision 3, 4, or 5 (felony-level harassment; 
476.5   stalking); 609.66, subdivision 1e (drive-by shooting); 609.855, 
476.6   subdivision 5 (shooting at or in a public transit vehicle or 
476.7   facility); 609.322 (solicitation, inducement, and promotion of 
476.8   prostitution); 609.342 (criminal sexual conduct in the first 
476.9   degree); 609.343 (criminal sexual conduct in the second degree); 
476.10  609.344 (criminal sexual conduct in the third degree); 609.345 
476.11  (criminal sexual conduct in the fourth degree); 609.352 
476.12  (solicitation of children to engage in sexual conduct); 609.365 
476.13  (incest); felony offense under 609.377 (malicious punishment of 
476.14  a child); a felony offense under 609.378 (neglect or 
476.15  endangerment of a child); a felony offense under 609.324, 
476.16  subdivision 1 (other prohibited acts); 617.246 (use of minors in 
476.17  sexual performance prohibited); 617.247 (possession of pictorial 
476.18  representations of minors); a felony offense under sections 
476.19  609.2242 and 609.2243 (domestic assault), a felony offense of 
476.20  spousal abuse, a felony offense of child abuse or neglect, a 
476.21  felony offense of a crime against children; or attempt or 
476.22  conspiracy to commit any of these offenses as defined in 
476.23  Minnesota Statutes, or an offense in any other state or country, 
476.24  where the elements are substantially similar to any of the 
476.25  offenses listed in this clause; 
476.26     (2) if less than 15 years have passed since the discharge 
476.27  of the sentence imposed for the offense; and the individual has 
476.28  received a felony conviction for a violation of any of these 
476.29  offenses:  sections 609.21 (criminal vehicular homicide and 
476.30  injury); 609.165 (felon ineligible to possess firearm); 609.215 
476.31  (suicide); 609.223 or 609.2231 (assault in the third or fourth 
476.32  degree); repeat offenses under 609.224 (assault in the fifth 
476.33  degree); repeat offenses under 609.3451 (criminal sexual conduct 
476.34  in the fifth degree); 609.498, subdivision 1 or 1a 
476.35  1b (aggravated first degree or first degree tampering with a 
476.36  witness); 609.713 (terroristic threats); 609.235 (use of drugs 
477.1   to injure or facilitate crime); 609.24 (simple robbery); 609.255 
477.2   (false imprisonment); 609.562 (arson in the second degree); 
477.3   609.563 (arson in the third degree); repeat offenses under 
477.4   617.23 (indecent exposure; penalties); repeat offenses under 
477.5   617.241 (obscene materials and performances; distribution and 
477.6   exhibition prohibited; penalty); 609.71 (riot); 609.66 
477.7   (dangerous weapons); 609.67 (machine guns and short-barreled 
477.8   shotguns); 609.2325 (criminal abuse of a vulnerable adult); 
477.9   609.2664 (manslaughter of an unborn child in the first degree); 
477.10  609.2665 (manslaughter of an unborn child in the second degree); 
477.11  609.267 (assault of an unborn child in the first degree); 
477.12  609.2671 (assault of an unborn child in the second degree); 
477.13  609.268 (injury or death of an unborn child in the commission of 
477.14  a crime); 609.52 (theft); 609.2335 (financial exploitation of a 
477.15  vulnerable adult); 609.521 (possession of shoplifting gear); 
477.16  609.582 (burglary); 609.625 (aggravated forgery); 609.63 
477.17  (forgery); 609.631 (check forgery; offering a forged check); 
477.18  609.635 (obtaining signature by false pretense); 609.27 
477.19  (coercion); 609.275 (attempt to coerce); 609.687 (adulteration); 
477.20  260C.301 (grounds for termination of parental rights); chapter 
477.21  152 (drugs; controlled substance); and a felony level conviction 
477.22  involving alcohol or drug use.  An attempt or conspiracy to 
477.23  commit any of these offenses, as each of these offenses is 
477.24  defined in Minnesota Statutes; or an offense in any other state 
477.25  or country, the elements of which are substantially similar to 
477.26  the elements of the offenses in this clause.  If the individual 
477.27  studied is convicted of one of the felonies listed in this 
477.28  clause, but the sentence is a gross misdemeanor or misdemeanor 
477.29  disposition, the lookback period for the conviction is the 
477.30  period applicable to the disposition, that is the period for 
477.31  gross misdemeanors or misdemeanors; 
477.32     (3) if less than ten years have passed since the discharge 
477.33  of the sentence imposed for the offense; and the individual has 
477.34  received a gross misdemeanor conviction for a violation of any 
477.35  of the following offenses:  sections 609.224 (assault in the 
477.36  fifth degree); 609.2242 and 609.2243 (domestic assault); 
478.1   violation of an order for protection under 518B.01, subdivision 
478.2   14; 609.3451 (criminal sexual conduct in the fifth degree); 
478.3   repeat offenses under 609.746 (interference with privacy); 
478.4   repeat offenses under 617.23 (indecent exposure); 617.241 
478.5   (obscene materials and performances); 617.243 (indecent 
478.6   literature, distribution); 617.293 (harmful materials; 
478.7   dissemination and display to minors prohibited); 609.71 (riot); 
478.8   609.66 (dangerous weapons); 609.749, subdivision 2 (harassment; 
478.9   stalking); 609.224, subdivision 2, paragraph (c) (assault in the 
478.10  fifth degree by a caregiver against a vulnerable adult); 609.23 
478.11  (mistreatment of persons confined); 609.231 (mistreatment of 
478.12  residents or patients); 609.2325 (criminal abuse of a vulnerable 
478.13  adult); 609.233 (criminal neglect of a vulnerable adult); 
478.14  609.2335 (financial exploitation of a vulnerable adult); 609.234 
478.15  (failure to report maltreatment of a vulnerable adult); 609.72, 
478.16  subdivision 3 (disorderly conduct against a vulnerable adult); 
478.17  609.265 (abduction); 609.378 (neglect or endangerment of a 
478.18  child); 609.377 (malicious punishment of a child); 609.324, 
478.19  subdivision 1a (other prohibited acts; minor engaged in 
478.20  prostitution); 609.33 (disorderly house); 609.52 (theft); 
478.21  609.582 (burglary); 609.631 (check forgery; offering a forged 
478.22  check); 609.275 (attempt to coerce); or an attempt or conspiracy 
478.23  to commit any of these offenses, as each of these offenses is 
478.24  defined in Minnesota Statutes; or an offense in any other state 
478.25  or country, the elements of which are substantially similar to 
478.26  the elements of any of the offenses listed in this clause.  If 
478.27  the defendant is convicted of one of the gross misdemeanors 
478.28  listed in this clause, but the sentence is a misdemeanor 
478.29  disposition, the lookback period for the conviction is the 
478.30  period applicable to misdemeanors; or 
478.31     (4) if less than seven years have passed since the 
478.32  discharge of the sentence imposed for the offense; and the 
478.33  individual has received a misdemeanor conviction for a violation 
478.34  of any of the following offenses:  sections 609.224 (assault in 
478.35  the fifth degree); 609.2242 (domestic assault); violation of an 
478.36  order for protection under 518B.01 (Domestic Abuse Act); 
479.1   violation of an order for protection under 609.3232 (protective 
479.2   order authorized; procedures; penalties); 609.746 (interference 
479.3   with privacy); 609.79 (obscene or harassing phone calls); 
479.4   609.795 (letter, telegram, or package; opening; harassment); 
479.5   617.23 (indecent exposure; penalties); 609.2672 (assault of an 
479.6   unborn child in the third degree); 617.293 (harmful materials; 
479.7   dissemination and display to minors prohibited); 609.66 
479.8   (dangerous weapons); 609.665 (spring guns); 609.2335 (financial 
479.9   exploitation of a vulnerable adult); 609.234 (failure to report 
479.10  maltreatment of a vulnerable adult); 609.52 (theft); 609.27 
479.11  (coercion); or an attempt or conspiracy to commit any of these 
479.12  offenses, as each of these offenses is defined in Minnesota 
479.13  Statutes; or an offense in any other state or country, the 
479.14  elements of which are substantially similar to the elements of 
479.15  any of the offenses listed in this clause; a determination or 
479.16  disposition of failure to make required reports under section 
479.17  626.556, subdivision 3, or 626.557, subdivision 3, for incidents 
479.18  in which:  (i) the final disposition under section 626.556 or 
479.19  626.557 was substantiated maltreatment, and (ii) the 
479.20  maltreatment was recurring or serious; or a determination or 
479.21  disposition of substantiated serious or recurring maltreatment 
479.22  of a minor under section 626.556 or of a vulnerable adult under 
479.23  section 626.557 for which there is a preponderance of evidence 
479.24  that the maltreatment occurred, and that the subject was 
479.25  responsible for the maltreatment. 
479.26     For the purposes of this section, "serious maltreatment" 
479.27  means sexual abuse; maltreatment resulting in death; or 
479.28  maltreatment resulting in serious injury which reasonably 
479.29  requires the care of a physician whether or not the care of a 
479.30  physician was sought; or abuse resulting in serious injury.  For 
479.31  purposes of this section, "abuse resulting in serious injury" 
479.32  means:  bruises, bites, skin laceration or tissue damage; 
479.33  fractures; dislocations; evidence of internal injuries; head 
479.34  injuries with loss of consciousness; extensive second-degree or 
479.35  third-degree burns and other burns for which complications are 
479.36  present; extensive second-degree or third-degree frostbite, and 
480.1   others for which complications are present; irreversible 
480.2   mobility or avulsion of teeth; injuries to the eyeball; 
480.3   ingestion of foreign substances and objects that are harmful; 
480.4   near drowning; and heat exhaustion or sunstroke.  For purposes 
480.5   of this section, "care of a physician" is treatment received or 
480.6   ordered by a physician, but does not include diagnostic testing, 
480.7   assessment, or observation.  For the purposes of this section, 
480.8   "recurring maltreatment" means more than one incident of 
480.9   maltreatment for which there is a preponderance of evidence that 
480.10  the maltreatment occurred, and that the subject was responsible 
480.11  for the maltreatment.  For purposes of this section, "access" 
480.12  means physical access to an individual receiving services or the 
480.13  individual's personal property without continuous, direct 
480.14  supervision as defined in section 245A.04, subdivision 3.  
480.15     (b) Except for background studies related to child foster 
480.16  care, adult foster care, or family child care licensure, when 
480.17  the subject of a background study is regulated by a 
480.18  health-related licensing board as defined in chapter 214, and 
480.19  the regulated person has been determined to have been 
480.20  responsible for substantiated maltreatment under section 626.556 
480.21  or 626.557, instead of the commissioner making a decision 
480.22  regarding disqualification, the board shall make a determination 
480.23  whether to impose disciplinary or corrective action under 
480.24  chapter 214. 
480.25     (1) The commissioner shall notify the health-related 
480.26  licensing board: 
480.27     (i) upon completion of a background study that produces a 
480.28  record showing that the individual was determined to have been 
480.29  responsible for substantiated maltreatment; 
480.30     (ii) upon the commissioner's completion of an investigation 
480.31  that determined the individual was responsible for substantiated 
480.32  maltreatment; or 
480.33     (iii) upon receipt from another agency of a finding of 
480.34  substantiated maltreatment for which the individual was 
480.35  responsible. 
480.36     (2) The commissioner's notice shall indicate whether the 
481.1   individual would have been disqualified by the commissioner for 
481.2   the substantiated maltreatment if the individual were not 
481.3   regulated by the board.  The commissioner shall concurrently 
481.4   send this notice to the individual. 
481.5      (3) Notwithstanding the exclusion from this subdivision for 
481.6   individuals who provide child foster care, adult foster care, or 
481.7   family child care, when the commissioner or a local agency has 
481.8   reason to believe that the direct contact services provided by 
481.9   the individual may fall within the jurisdiction of a 
481.10  health-related licensing board, a referral shall be made to the 
481.11  board as provided in this section. 
481.12     (4) If, upon review of the information provided by the 
481.13  commissioner, a health-related licensing board informs the 
481.14  commissioner that the board does not have jurisdiction to take 
481.15  disciplinary or corrective action, the commissioner shall make 
481.16  the appropriate disqualification decision regarding the 
481.17  individual as otherwise provided in this chapter. 
481.18     (5) The commissioner has the authority to monitor the 
481.19  facility's compliance with any requirements that the 
481.20  health-related licensing board places on regulated persons 
481.21  practicing in a facility either during the period pending a 
481.22  final decision on a disciplinary or corrective action or as a 
481.23  result of a disciplinary or corrective action.  The commissioner 
481.24  has the authority to order the immediate removal of a regulated 
481.25  person from direct contact or access when a board issues an 
481.26  order of temporary suspension based on a determination that the 
481.27  regulated person poses an immediate risk of harm to persons 
481.28  receiving services in a licensed facility. 
481.29     (6) A facility that allows a regulated person to provide 
481.30  direct contact services while not complying with the 
481.31  requirements imposed by the health-related licensing board is 
481.32  subject to action by the commissioner as specified under 
481.33  sections 245A.06 and 245A.07. 
481.34     (7) The commissioner shall notify a health-related 
481.35  licensing board immediately upon receipt of knowledge of 
481.36  noncompliance with requirements placed on a facility or upon a 
482.1   person regulated by the board. 
482.2      Sec. 5.  Minnesota Statutes 2002, section 256B.056, 
482.3   subdivision 6, is amended to read: 
482.4      Subd. 6.  [ASSIGNMENT OF BENEFITS.] To be eligible for 
482.5   medical assistance a person must have applied or must agree to 
482.6   apply all proceeds received or receivable by the person or the 
482.7   person's spouse legal representative from any third person party 
482.8   liable for the costs of medical care for the person, the spouse, 
482.9   and children.  The state agency shall require from any applicant 
482.10  or recipient of medical assistance the assignment of any rights 
482.11  to medical support and third party payments.  By accepting or 
482.12  receiving assistance, the person is deemed to have assigned the 
482.13  person's rights to medical support and third party payments as 
482.14  required by Title 19 of the Social Security Act.  Persons must 
482.15  cooperate with the state in establishing paternity and obtaining 
482.16  third party payments.  By signing an application for accepting 
482.17  medical assistance, a person assigns to the department of human 
482.18  services all rights the person may have to medical support or 
482.19  payments for medical expenses from any other person or entity on 
482.20  their own or their dependent's behalf and agrees to cooperate 
482.21  with the state in establishing paternity and obtaining third 
482.22  party payments.  Any rights or amounts so assigned shall be 
482.23  applied against the cost of medical care paid for under this 
482.24  chapter.  Any assignment takes effect upon the determination 
482.25  that the applicant is eligible for medical assistance and up to 
482.26  three months prior to the date of application if the applicant 
482.27  is determined eligible for and receives medical assistance 
482.28  benefits.  The application must contain a statement explaining 
482.29  this assignment.  Any assignment shall not be effective as to 
482.30  benefits paid or provided under automobile accident coverage and 
482.31  private health care coverage prior to notification of the 
482.32  assignment by the person or organization providing the 
482.33  benefits.  For the purposes of this section, "the department of 
482.34  human services or the state" includes prepaid health plans under 
482.35  contract with the commissioner according to sections 256B.031, 
482.36  256B.69, 256D.03, subdivision 4, paragraph (d), and 256L.12; 
483.1   children's mental health collaboratives under section 245.493; 
483.2   demonstration projects for persons with disabilities under 
483.3   section 256B.77; nursing facilities under the alternative 
483.4   payment demonstration project under section 256B.434; and the 
483.5   county-based purchasing entities under section 256B.692.  
483.6      Sec. 6.  Minnesota Statutes 2002, section 256B.057, 
483.7   subdivision 10, is amended to read: 
483.8      Subd. 10.  [CERTAIN PERSONS NEEDING TREATMENT FOR BREAST OR 
483.9   CERVICAL CANCER.] (a) Medical assistance may be paid for a 
483.10  person who: 
483.11     (1) has been screened for breast or cervical cancer by the 
483.12  Minnesota breast and cervical cancer control program, and 
483.13  program funds have been used to pay for the person's screening; 
483.14     (2) according to the person's treating health professional, 
483.15  needs treatment, including diagnostic services necessary to 
483.16  determine the extent and proper course of treatment, for breast 
483.17  or cervical cancer, including precancerous conditions and early 
483.18  stage cancer; 
483.19     (3) meets the income eligibility guidelines for the 
483.20  Minnesota breast and cervical cancer control program; 
483.21     (4) is under age 65; 
483.22     (5) is not otherwise eligible for medical assistance under 
483.23  United States Code, title 42, section 1396(a)(10)(A)(i); and 
483.24     (6) is not otherwise covered under creditable coverage, as 
483.25  defined under United States Code, title 42, section 
483.26  300gg(c) 1396a(aa). 
483.27     (b) Medical assistance provided for an eligible person 
483.28  under this subdivision shall be limited to services provided 
483.29  during the period that the person receives treatment for breast 
483.30  or cervical cancer. 
483.31     (c) A person meeting the criteria in paragraph (a) is 
483.32  eligible for medical assistance without meeting the eligibility 
483.33  criteria relating to income and assets in section 256B.056, 
483.34  subdivisions 1a to 5b. 
483.35     Sec. 7.  Minnesota Statutes 2002, section 256B.064, 
483.36  subdivision 2, is amended to read: 
484.1      Subd. 2.  [IMPOSITION OF MONETARY RECOVERY AND SANCTIONS.] 
484.2   (a) The commissioner shall determine any monetary amounts to be 
484.3   recovered and sanctions to be imposed upon a vendor of medical 
484.4   care under this section.  Except as provided in 
484.5   paragraph paragraphs (b) and (d), neither a monetary recovery 
484.6   nor a sanction will be imposed by the commissioner without prior 
484.7   notice and an opportunity for a hearing, according to chapter 
484.8   14, on the commissioner's proposed action, provided that the 
484.9   commissioner may suspend or reduce payment to a vendor of 
484.10  medical care, except a nursing home or convalescent care 
484.11  facility, after notice and prior to the hearing if in the 
484.12  commissioner's opinion that action is necessary to protect the 
484.13  public welfare and the interests of the program. 
484.14     (b) Except for a nursing home or convalescent care 
484.15  facility, the commissioner may withhold or reduce payments to a 
484.16  vendor of medical care without providing advance notice of such 
484.17  withholding or reduction if either of the following occurs: 
484.18     (1) the vendor is convicted of a crime involving the 
484.19  conduct described in subdivision 1a; or 
484.20     (2) the commissioner receives reliable evidence of fraud or 
484.21  willful misrepresentation by the vendor. 
484.22     (c) The commissioner must send notice of the withholding or 
484.23  reduction of payments under paragraph (b) within five days of 
484.24  taking such action.  The notice must: 
484.25     (1) state that payments are being withheld according to 
484.26  paragraph (b); 
484.27     (2) except in the case of a conviction for conduct 
484.28  described in subdivision 1a, state that the withholding is for a 
484.29  temporary period and cite the circumstances under which 
484.30  withholding will be terminated; 
484.31     (3) identify the types of claims to which the withholding 
484.32  applies; and 
484.33     (4) inform the vendor of the right to submit written 
484.34  evidence for consideration by the commissioner. 
484.35     The withholding or reduction of payments will not continue 
484.36  after the commissioner determines there is insufficient evidence 
485.1   of fraud or willful misrepresentation by the vendor, or after 
485.2   legal proceedings relating to the alleged fraud or willful 
485.3   misrepresentation are completed, unless the commissioner has 
485.4   sent notice of intention to impose monetary recovery or 
485.5   sanctions under paragraph (a). 
485.6      (d) The commissioner may suspend or terminate a vendor's 
485.7   participation in the program without providing advance notice 
485.8   and an opportunity for a hearing when the suspension or 
485.9   termination is required because of the vendor's exclusion from 
485.10  participation in Medicare.  Within five days of taking such 
485.11  action, the commissioner must send notice of the suspension or 
485.12  termination.  The notice must: 
485.13     (1) state that suspension or termination is the result of 
485.14  the vendor's exclusion from Medicare; 
485.15     (2) identify the effective date of the suspension or 
485.16  termination; 
485.17     (3) inform the vendor of the need to be reinstated to 
485.18  Medicare before reapplying for participation in the program; and 
485.19     (4) inform the vendor of the right to submit written 
485.20  evidence for consideration by the commissioner. 
485.21     (e) Upon receipt of a notice under paragraph (a) that a 
485.22  monetary recovery or sanction is to be imposed, a vendor may 
485.23  request a contested case, as defined in section 14.02, 
485.24  subdivision 3, by filing with the commissioner a written request 
485.25  of appeal.  The appeal request must be received by the 
485.26  commissioner no later than 30 days after the date the 
485.27  notification of monetary recovery or sanction was mailed to the 
485.28  vendor.  The appeal request must specify: 
485.29     (1) each disputed item, the reason for the dispute, and an 
485.30  estimate of the dollar amount involved for each disputed item; 
485.31     (2) the computation that the vendor believes is correct; 
485.32     (3) the authority in statute or rule upon which the vendor 
485.33  relies for each disputed item; 
485.34     (4) the name and address of the person or entity with whom 
485.35  contacts may be made regarding the appeal; and 
485.36     (5) other information required by the commissioner. 
486.1      Sec. 8.  Minnesota Statutes 2002, section 256B.437, 
486.2   subdivision 2, is amended to read: 
486.3      Subd. 2.  [PLANNING AND DEVELOPMENT OF COMMUNITY-BASED 
486.4   SERVICES.] (a) The commissioner of human services shall 
486.5   establish a process to adjust the capacity and distribution of 
486.6   long-term care services to equalize the supply and demand for 
486.7   different types of services.  This process must include 
486.8   community planning, expansion or establishment of needed 
486.9   services, and analysis of voluntary nursing facility closures. 
486.10     (b) The purpose of this process is to support the planning 
486.11  and development of community-based services.  This process must 
486.12  support early intervention, advocacy, and consumer protection 
486.13  while providing resources and incentives for expanded county 
486.14  planning and for nursing facilities to transition to meet 
486.15  community needs. 
486.16     (c) The process shall support and facilitate expansion of 
486.17  community-based services under the county-administered 
486.18  alternative care program under section 256B.0913 and waivers for 
486.19  elderly under section 256B.0915, including, but not limited to, 
486.20  the development of supportive services such as housing and 
486.21  transportation.  The process shall utilize community assessments 
486.22  and planning developed for the community health services plan 
486.23  and plan update and for the community social services act plan, 
486.24  and other relevant information. 
486.25     (d) The commissioners of health and human services, as 
486.26  appropriate, shall provide, by July 15, 2001, available data 
486.27  necessary for the county, including, but not limited to, data on 
486.28  nursing facility bed distribution, housing with services 
486.29  options, the closure of nursing facilities that occur outside of 
486.30  the planned closure process, and approval of planned closures in 
486.31  the county and contiguous counties. 
486.32     (e) Each county shall submit to the commissioner of human 
486.33  services, by October 15, 2001, a gaps analysis that identifies 
486.34  local service needs, pending development of services, and any 
486.35  other issues that would contribute to or impede further 
486.36  development of community-based services.  The gaps analysis must 
487.1   also be sent to the local area agency on aging and, if 
487.2   applicable, local SAIL projects, for review and comment.  The 
487.3   review and comment must assess needs across county boundaries.  
487.4   The area agencies on aging and SAIL projects must provide the 
487.5   commissioner and the counties with their review and analyses by 
487.6   November 15, 2001. 
487.7      (f) The addendum to the biennial plan shall be submitted 
487.8   biennially, beginning December 31, 2001, and every other year 
487.9   thereafter in accordance with the Community Social Services Act 
487.10  plan timeline, and shall include recommendations for development 
487.11  of community-based services.  Area agencies on aging and SAIL 
487.12  projects must provide the commissioner and the counties with 
487.13  their review and analyses within 60 days following the Community 
487.14  Social Services Act plan submission date.  Both planning and 
487.15  implementation shall be implemented within the amount of funding 
487.16  made available to the county board for these purposes. 
487.17     (g) The plan, within the funding allocated, shall: 
487.18     (1) include the gaps analysis required by paragraph (e); 
487.19     (2) involve providers, consumers, cities, townships, 
487.20  businesses, and area agencies on aging in the planning process; 
487.21     (3) address the availability of alternative care and 
487.22  elderly waiver services for eligible recipients; 
487.23     (4) address the development of other supportive services, 
487.24  such as transit, housing, and workforce and economic 
487.25  development; and 
487.26     (5) estimate the cost and timelines for development. 
487.27     (h) The biennial plan addendum shall be coordinated with 
487.28  the county mental health plan for inclusion in the community 
487.29  health services plan and included as an addendum to the 
487.30  community social services plan. 
487.31     (i) The county board having financial responsibility for 
487.32  persons present in another county shall cooperate with that 
487.33  county for planning and development of services. 
487.34     (j) The county board shall cooperate in planning and 
487.35  development of community-based services with other counties, as 
487.36  necessary, and coordinate planning for long-term care services 
488.1   that involve more than one county, within the funding allocated 
488.2   for these purposes. 
488.3      (k) The commissioners of health and human services, in 
488.4   cooperation with county boards, shall report biennially to the 
488.5   legislature, beginning February 1, 2002, regarding the 
488.6   development of community-based services, transition or closure 
488.7   of nursing facilities, and specific gaps in services in 
488.8   identified geographic areas that may require additional 
488.9   resources or flexibility, as documented by the process in this 
488.10  subdivision. 
488.11     Sec. 9.  Minnesota Statutes 2002, section 256B.76, is 
488.12  amended to read: 
488.13     256B.76 [PHYSICIAN AND DENTAL REIMBURSEMENT.] 
488.14     (a) Effective for services rendered on or after October 1, 
488.15  1992, the commissioner shall make payments for physician 
488.16  services as follows: 
488.17     (1) payment for level one Centers for Medicare and Medicaid 
488.18  Services' common procedural coding system codes titled "office 
488.19  and other outpatient services," "preventive medicine new and 
488.20  established patient," "delivery, antepartum, and postpartum 
488.21  care," "critical care," cesarean delivery and pharmacologic 
488.22  management provided to psychiatric patients, and level three 
488.23  codes for enhanced services for prenatal high risk, shall be 
488.24  paid at the lower of (i) submitted charges, or (ii) 25 percent 
488.25  above the rate in effect on June 30, 1992.  If the rate on any 
488.26  procedure code within these categories is different than the 
488.27  rate that would have been paid under the methodology in section 
488.28  256B.74, subdivision 2, then the larger rate shall be paid; 
488.29     (2) payments for all other services shall be paid at the 
488.30  lower of (i) submitted charges, or (ii) 15.4 percent above the 
488.31  rate in effect on June 30, 1992; 
488.32     (3) all physician rates shall be converted from the 50th 
488.33  percentile of 1982 to the 50th percentile of 1989, less the 
488.34  percent in aggregate necessary to equal the above increases 
488.35  except that payment rates for home health agency services shall 
488.36  be the rates in effect on September 30, 1992; 
489.1      (4) effective for services rendered on or after January 1, 
489.2   2000, payment rates for physician and professional services 
489.3   shall be increased by three percent over the rates in effect on 
489.4   December 31, 1999, except for home health agency and family 
489.5   planning agency services; and 
489.6      (5) the increases in clause (4) shall be implemented 
489.7   January 1, 2000, for managed care. 
489.8      (b) Effective for services rendered on or after October 1, 
489.9   1992, the commissioner shall make payments for dental services 
489.10  as follows: 
489.11     (1) dental services shall be paid at the lower of (i) 
489.12  submitted charges, or (ii) 25 percent above the rate in effect 
489.13  on June 30, 1992; 
489.14     (2) dental rates shall be converted from the 50th 
489.15  percentile of 1982 to the 50th percentile of 1989, less the 
489.16  percent in aggregate necessary to equal the above increases; 
489.17     (3) effective for services rendered on or after January 1, 
489.18  2000, payment rates for dental services shall be increased by 
489.19  three percent over the rates in effect on December 31, 1999; 
489.20     (4) the commissioner shall award grants to community 
489.21  clinics or other nonprofit community organizations, political 
489.22  subdivisions, professional associations, or other organizations 
489.23  that demonstrate the ability to provide dental services 
489.24  effectively to public program recipients.  Grants may be used to 
489.25  fund the costs related to coordinating access for recipients, 
489.26  developing and implementing patient care criteria, upgrading or 
489.27  establishing new facilities, acquiring furnishings or equipment, 
489.28  recruiting new providers, or other development costs that will 
489.29  improve access to dental care in a region.  In awarding grants, 
489.30  the commissioner shall give priority to applicants that plan to 
489.31  serve areas of the state in which the number of dental providers 
489.32  is not currently sufficient to meet the needs of recipients of 
489.33  public programs or uninsured individuals.  The commissioner 
489.34  shall consider the following in awarding the grants: 
489.35     (i) potential to successfully increase access to an 
489.36  underserved population; 
490.1      (ii) the ability to raise matching funds; 
490.2      (iii) the long-term viability of the project to improve 
490.3   access beyond the period of initial funding; 
490.4      (iv) the efficiency in the use of the funding; and 
490.5      (v) the experience of the proposers in providing services 
490.6   to the target population. 
490.7      The commissioner shall monitor the grants and may terminate 
490.8   a grant if the grantee does not increase dental access for 
490.9   public program recipients.  The commissioner shall consider 
490.10  grants for the following: 
490.11     (i) implementation of new programs or continued expansion 
490.12  of current access programs that have demonstrated success in 
490.13  providing dental services in underserved areas; 
490.14     (ii) a pilot program for utilizing hygienists outside of a 
490.15  traditional dental office to provide dental hygiene services; 
490.16  and 
490.17     (iii) a program that organizes a network of volunteer 
490.18  dentists, establishes a system to refer eligible individuals to 
490.19  volunteer dentists, and through that network provides donated 
490.20  dental care services to public program recipients or uninsured 
490.21  individuals; 
490.22     (5) beginning October 1, 1999, the payment for tooth 
490.23  sealants and fluoride treatments shall be the lower of (i) 
490.24  submitted charge, or (ii) 80 percent of median 1997 charges; 
490.25     (6) the increases listed in clauses (3) and (5) shall be 
490.26  implemented January 1, 2000, for managed care; and 
490.27     (7) effective for services provided on or after January 1, 
490.28  2002, payment for diagnostic examinations and dental x-rays 
490.29  provided to children under age 21 shall be the lower of (i) the 
490.30  submitted charge, or (ii) 85 percent of median 1999 charges.  
490.31     (c) Effective for dental services rendered on or after 
490.32  January 1, 2002, the commissioner may, within the limits of 
490.33  available appropriation, increase reimbursements to dentists and 
490.34  dental clinics deemed by the commissioner to be critical access 
490.35  dental providers.  Reimbursement to a critical access dental 
490.36  provider may be increased by not more than 50 percent above the 
491.1   reimbursement rate that would otherwise be paid to the 
491.2   provider.  Payments to health plan companies shall be adjusted 
491.3   to reflect increased reimbursements to critical access dental 
491.4   providers as approved by the commissioner.  In determining which 
491.5   dentists and dental clinics shall be deemed critical access 
491.6   dental providers, the commissioner shall review: 
491.7      (1) the utilization rate in the service area in which the 
491.8   dentist or dental clinic operates for dental services to 
491.9   patients covered by medical assistance, general assistance 
491.10  medical care, or MinnesotaCare as their primary source of 
491.11  coverage; 
491.12     (2) the level of services provided by the dentist or dental 
491.13  clinic to patients covered by medical assistance, general 
491.14  assistance medical care, or MinnesotaCare as their primary 
491.15  source of coverage; and 
491.16     (3) whether the level of services provided by the dentist 
491.17  or dental clinic is critical to maintaining adequate levels of 
491.18  patient access within the service area. 
491.19  In the absence of a critical access dental provider in a service 
491.20  area, the commissioner may designate a dentist or dental clinic 
491.21  as a critical access dental provider if the dentist or dental 
491.22  clinic is willing to provide care to patients covered by medical 
491.23  assistance, general assistance medical care, or MinnesotaCare at 
491.24  a level which significantly increases access to dental care in 
491.25  the service area. 
491.26     (d) Effective July 1, 2001, the medical assistance rates 
491.27  for outpatient mental health services provided by an entity that 
491.28  operates: 
491.29     (1) a Medicare-certified comprehensive outpatient 
491.30  rehabilitation facility; and 
491.31     (2) a facility that was certified prior to January 1, 1993, 
491.32  with at least 33 percent of the clients receiving rehabilitation 
491.33  services in the most recent calendar year who are medical 
491.34  assistance recipients, will be increased by 38 percent, when 
491.35  those services are provided within the comprehensive outpatient 
491.36  rehabilitation facility and provided to residents of nursing 
492.1   facilities owned by the entity. 
492.2      (e) An entity that operates both a Medicare certified 
492.3   comprehensive outpatient rehabilitation facility and a facility 
492.4   which was certified prior to January 1, 1993, that is licensed 
492.5   under Minnesota Rules, parts 9570.2000 to 9570.3600, and for 
492.6   whom at least 33 percent of the clients receiving rehabilitation 
492.7   services in the most recent calendar year are medical assistance 
492.8   recipients, shall be reimbursed by the commissioner for 
492.9   rehabilitation services at rates that are 38 percent greater 
492.10  than the maximum reimbursement rate allowed under paragraph (a), 
492.11  clause (2), when those services are (1) provided within the 
492.12  comprehensive outpatient rehabilitation facility and (2) 
492.13  provided to residents of nursing facilities owned by the entity. 
492.14     Sec. 10.  Minnesota Statutes 2002, section 256B.761, is 
492.15  amended to read: 
492.16     256B.761 [REIMBURSEMENT FOR MENTAL HEALTH SERVICES.] 
492.17     (a) Effective for services rendered on or after July 1, 
492.18  2001, payment for medication management provided to psychiatric 
492.19  patients, outpatient mental health services, day treatment 
492.20  services, home-based mental health services, and family 
492.21  community support services shall be paid at the lower of (1) 
492.22  submitted charges, or (2) 75.6 percent of the 50th percentile of 
492.23  1999 charges. 
492.24     (b) Effective July 1, 2001, the medical assistance rates 
492.25  for outpatient mental health services provided by an entity that 
492.26  operates:  (1) a Medicare-certified comprehensive outpatient 
492.27  rehabilitation facility; and (2) a facility that was certified 
492.28  prior to January 1, 1993, with at least 33 percent of the 
492.29  clients receiving rehabilitation services in the most recent 
492.30  calendar year who are medical assistance recipients, will be 
492.31  increased by 38 percent, when those services are provided within 
492.32  the comprehensive outpatient rehabilitation facility and 
492.33  provided to residents of nursing facilities owned by the entity. 
492.34     Sec. 11.  Minnesota Statutes 2002, section 256D.03, 
492.35  subdivision 3a, is amended to read: 
492.36     Subd. 3a.  [CLAIMS; ASSIGNMENT OF BENEFITS.] Claims must be 
493.1   filed pursuant to section 256D.16.  General assistance medical 
493.2   care applicants and recipients must apply or agree to apply 
493.3   third party health and accident benefits to the costs of medical 
493.4   care.  They must cooperate with the state in establishing 
493.5   paternity and obtaining third party payments.  By signing an 
493.6   application for accepting general assistance, a person assigns 
493.7   to the department of human services all rights to medical 
493.8   support or payments for medical expenses from another person or 
493.9   entity on their own or their dependent's behalf and agrees to 
493.10  cooperate with the state in establishing paternity and obtaining 
493.11  third party payments.  The application shall contain a statement 
493.12  explaining the assignment.  Any rights or amounts assigned shall 
493.13  be applied against the cost of medical care paid for under this 
493.14  chapter.  An assignment is effective on the date general 
493.15  assistance medical care eligibility takes effect.  The 
493.16  assignment shall not affect benefits paid or provided under 
493.17  automobile accident coverage and private health care coverage 
493.18  until the person or organization providing the benefits has 
493.19  received notice of the assignment.  
493.20     Sec. 12.  Minnesota Statutes 2002, section 256L.12, 
493.21  subdivision 6, is amended to read: 
493.22     Subd. 6.  [COPAYMENTS AND BENEFIT LIMITS.] Enrollees are 
493.23  responsible for all copayments in section 256L.03, subdivision 4 
493.24  5, and shall pay copayments to the managed care plan or to its 
493.25  participating providers.  The enrollee is also responsible for 
493.26  payment of inpatient hospital charges which exceed the 
493.27  MinnesotaCare benefit limit. 
493.28     Sec. 13.  Minnesota Statutes 2002, section 260C.141, 
493.29  subdivision 2, is amended to read: 
493.30     Subd. 2.  [REVIEW OF FOSTER CARE STATUS.] The social 
493.31  services agency responsible for the placement of a child in a 
493.32  residential facility, as defined in section 260C.212, 
493.33  subdivision 1, pursuant to a voluntary release by the child's 
493.34  parent or parents must proceed in juvenile court to review the 
493.35  foster care status of the child in the manner provided in this 
493.36  section.  
494.1      (a) Except for a child in placement due solely to the 
494.2   child's developmental disability or emotional disturbance, when 
494.3   a child continues in voluntary placement according to section 
494.4   260C.212, subdivision 8, a petition shall be filed alleging the 
494.5   child to be in need of protection or services or seeking 
494.6   termination of parental rights or other permanent placement of 
494.7   the child away from the parent within 90 days of the date of the 
494.8   voluntary placement agreement.  The petition shall state the 
494.9   reasons why the child is in placement, the progress on the 
494.10  out-of-home placement plan required under section 260C.212, 
494.11  subdivision 1, and the statutory basis for the petition under 
494.12  section 260C.007, subdivision 6, 260C.201, subdivision 11, or 
494.13  260C.301. 
494.14     (1) In the case of a petition alleging the child to be in 
494.15  need of protection or services filed under this paragraph, if 
494.16  all parties agree and the court finds it is in the best 
494.17  interests of the child, the court may find the petition states a 
494.18  prima facie case that: 
494.19     (i) the child's needs are being met; 
494.20     (ii) the placement of the child in foster care is in the 
494.21  best interests of the child; 
494.22     (iii) reasonable efforts to reunify the child and the 
494.23  parent or guardian are being made; and 
494.24     (iv) the child will be returned home in the next three 
494.25  months. 
494.26     (2) If the court makes findings under paragraph (1), the 
494.27  court shall approve the voluntary arrangement and continue the 
494.28  matter for up to three more months to ensure the child returns 
494.29  to the parents' home.  The responsible social services agency 
494.30  shall: 
494.31     (i) report to the court when the child returns home and the 
494.32  progress made by the parent on the out-of-home placement plan 
494.33  required under section 260C.212, in which case the court shall 
494.34  dismiss jurisdiction; 
494.35     (ii) report to the court that the child has not returned 
494.36  home, in which case the matter shall be returned to the court 
495.1   for further proceedings under section 260C.163; or 
495.2      (iii) if any party does not agree to continue the matter 
495.3   under paragraph (1) and this paragraph, the matter shall proceed 
495.4   under section 260C.163. 
495.5      (b) In the case of a child in voluntary placement due 
495.6   solely to the child's developmental disability or emotional 
495.7   disturbance according to section 260C.212, subdivision 9, the 
495.8   following procedures apply: 
495.9      (1)  [REPORT TO COURT.] (i) Unless the county attorney 
495.10  determines that a petition under subdivision 1 is appropriate, 
495.11  without filing a petition, a written report shall be forwarded 
495.12  to the court within 165 days of the date of the voluntary 
495.13  placement agreement.  The written report shall contain necessary 
495.14  identifying information for the court to proceed, a copy of the 
495.15  out-of-home placement plan required under section 260C.212, 
495.16  subdivision 1, a written summary of the proceedings of any 
495.17  administrative review required under section 260C.212, 
495.18  subdivision 7, and any other information the responsible social 
495.19  services agency, parent or guardian, the child or the foster 
495.20  parent or other residential facility wants the court to consider.
495.21     (ii) The responsible social services agency, where 
495.22  appropriate, must advise the child, parent or guardian, the 
495.23  foster parent, or representative of the residential facility of 
495.24  the requirements of this section and of their right to submit 
495.25  information to the court.  If the child, parent or guardian, 
495.26  foster parent, or representative of the residential facility 
495.27  wants to send information to the court, the responsible social 
495.28  services agency shall advise those persons of the reporting date 
495.29  and the identifying information necessary for the court 
495.30  administrator to accept the information and submit it to a judge 
495.31  with the agency's report.  The responsible social services 
495.32  agency must also notify those persons that they have the right 
495.33  to be heard in person by the court and how to exercise that 
495.34  right.  The responsible social services agency must also provide 
495.35  notice that an in-court hearing will not be held unless 
495.36  requested by a parent or guardian, foster parent, or the child. 
496.1      (iii) After receiving the required report, the court has 
496.2   jurisdiction to make the following determinations and must do so 
496.3   within ten days of receiving the forwarded report:  (A) whether 
496.4   or not the placement of the child is in the child's best 
496.5   interests; and (B) whether the parent and agency are 
496.6   appropriately planning for the child.  Unless requested by a 
496.7   parent or guardian, foster parent, or child, no in-court hearing 
496.8   need be held in order for the court to make findings and issue 
496.9   an order under this paragraph. 
496.10     (iv) If the court finds the placement is in the child's 
496.11  best interests and that the agency and parent are appropriately 
496.12  planning for the child, the court shall issue an order 
496.13  containing explicit, individualized findings to support its 
496.14  determination.  The court shall send a copy of the order to the 
496.15  county attorney, the responsible social services agency, the 
496.16  parent or guardian, the child, and the foster parents.  The 
496.17  court shall also send the parent or guardian, the child, and the 
496.18  foster parent notice of the required review under clause (2).  
496.19     (v) If the court finds continuing the placement not to be 
496.20  in the child's best interests or that the agency or the parent 
496.21  or guardian is not appropriately planning for the child, the 
496.22  court shall notify the county attorney, the responsible social 
496.23  services agency, the parent or guardian, the foster parent, the 
496.24  child, and the county attorney of the court's determinations and 
496.25  the basis for the court's determinations. 
496.26     (2)  [PERMANENCY REVIEW BY PETITION.] If a child with a 
496.27  developmental disability or an emotional disturbance continues 
496.28  in out-of-home placement for 13 months from the date of a 
496.29  voluntary placement, a petition alleging the child to be in need 
496.30  of protection or services, for termination of parental rights, 
496.31  or for permanent placement of the child away from the parent 
496.32  under section 260C.201 shall be filed.  The court shall conduct 
496.33  a permanency hearing on the petition no later than 14 months 
496.34  after the date of the voluntary placement.  At the permanency 
496.35  hearing, the court shall determine the need for an order 
496.36  permanently placing the child away from the parent or determine 
497.1   whether there are compelling reasons that continued voluntary 
497.2   placement is in the child's best interests.  A petition alleging 
497.3   the child to be in need of protection or services shall state 
497.4   the date of the voluntary placement agreement, the nature of the 
497.5   child's developmental disability or emotional disturbance, the 
497.6   plan for the ongoing care of the child, the parents' 
497.7   participation in the plan, the responsible social services 
497.8   agency's efforts to finalize a plan for the permanent placement 
497.9   of the child, and the statutory basis for the petition. 
497.10     (i) If a petition alleging the child to be in need of 
497.11  protection or services is filed under this paragraph, the court 
497.12  may find, based on the contents of the sworn petition, and the 
497.13  agreement of all parties, including the child, where 
497.14  appropriate, that there are compelling reasons that the 
497.15  voluntary arrangement is in the best interests of the child and 
497.16  that the responsible social services agency has made reasonable 
497.17  efforts to finalize a plan for the permanent placement of the 
497.18  child, approve the continued voluntary placement, and continue 
497.19  the matter under the court's jurisdiction for the purpose of 
497.20  reviewing the child's placement as a continued voluntary 
497.21  arrangement every 12 months as long as the child continues in 
497.22  out-of-home placement.  The matter must be returned to the court 
497.23  for further review every 12 months as long as the child remains 
497.24  in placement.  The court shall give notice to the parent or 
497.25  guardian of the continued review requirements under this 
497.26  section.  Nothing in this paragraph shall be construed to mean 
497.27  the court must order permanent placement for the child under 
497.28  section 260C.201, subdivision 11, as long as the court finds 
497.29  compelling reasons at the first review required under this 
497.30  section. 
497.31     (ii) If a petition for termination of parental rights, for 
497.32  transfer of permanent legal and physical custody to a relative, 
497.33  for long-term foster care, or for foster care for a specified 
497.34  period of time is filed, the court must proceed under section 
497.35  260C.201, subdivision 11. 
497.36     (3) If any party, including the child, disagrees with the 
498.1   voluntary arrangement, the court shall proceed under section 
498.2   260C.163. 
498.3      Sec. 14.  [REPORT ON LONG-TERM CARE.] 
498.4      The report on long-term care services required under 
498.5   Minnesota Statutes, section 144A.351, that is presented to the 
498.6   legislature by January 15, 2004, must also address strategies 
498.7   for increasing the purchase of long-term care insurance and the 
498.8   feasibility of offering government or private sector loans or 
498.9   lines of credit to individuals age 65 and over, for the purchase 
498.10  of long-term care services. 
498.11     Sec. 15.  [REPEALER.] 
498.12     (a) Minnesota Statutes 2002, sections 62J.66; 62J.68; 
498.13  144A.071, subdivision 5; and 144A.35, are repealed. 
498.14     (b) Laws 1998, chapter 407, article 4, section 63, is 
498.15  repealed. 
498.16     (c) Minnesota Rules, parts 9505.3045; 9505.3050; 9505.3055; 
498.17  9505.3060; 9505.3068; 9505.3070; 9505.3075; 9505.3080; 
498.18  9505.3090; 9505.3095; 9505.3100; 9505.3105; 9505.3107; 
498.19  9505.3110; 9505.3115; 9505.3120; 9505.3125; 9505.3130; 
498.20  9505.3138; 9505.3139; 9505.3140; 9505.3680; 9505.3690; and 
498.21  9505.3700, are repealed effective July 1, 2003. 
498.22                             ARTICLE 15
498.23                  CHILD SUPPORT FEDERAL COMPLIANCE
498.24     Section 1.  Minnesota Statutes 2002, section 13.69, 
498.25  subdivision 1, is amended to read: 
498.26     Subdivision 1.  [CLASSIFICATIONS.] (a) The following 
498.27  government data of the department of public safety are private 
498.28  data:  
498.29     (1) medical data on driving instructors, licensed drivers, 
498.30  and applicants for parking certificates and special license 
498.31  plates issued to physically handicapped persons; 
498.32     (2) other data on holders of a disability certificate under 
498.33  section 169.345, except that data that are not medical data may 
498.34  be released to law enforcement agencies; 
498.35     (3) social security numbers in driver's license and motor 
498.36  vehicle registration records, except that social security 
499.1   numbers must be provided to the department of revenue for 
499.2   purposes of tax administration and, the department of labor and 
499.3   industry for purposes of workers' compensation administration 
499.4   and enforcement, and the department of natural resources for 
499.5   purposes of license application administration; and 
499.6      (4) data on persons listed as standby or temporary 
499.7   custodians under section 171.07, subdivision 11, except that the 
499.8   data must be released to: 
499.9      (i) law enforcement agencies for the purpose of verifying 
499.10  that an individual is a designated caregiver; or 
499.11     (ii) law enforcement agencies who state that the license 
499.12  holder is unable to communicate at that time and that the 
499.13  information is necessary for notifying the designated caregiver 
499.14  of the need to care for a child of the license holder.  
499.15     (b) The following government data of the department of 
499.16  public safety are confidential data:  data concerning an 
499.17  individual's driving ability when that data is received from a 
499.18  member of the individual's family. 
499.19     Sec. 2.  [97A.482] [LICENSE APPLICATIONS; COLLECTION OF 
499.20  SOCIAL SECURITY NUMBERS.] 
499.21     (a) All individual noncommercial game and fish license 
499.22  applications under chapters 97A, 97B, and 97C, must include the 
499.23  applicant's social security number.  If the applicant does not 
499.24  have a social security number, the applicant must certify that 
499.25  the applicant does not have a social security number. 
499.26     (b) The social security numbers of individuals collected by 
499.27  the commissioner through game and fish license applications are 
499.28  private data under section 13.49, subdivision 1, and must be 
499.29  provided by the commissioner to the department of human services 
499.30  for the purpose of child support enforcement.  The collection of 
499.31  social security numbers from game and fish license applications 
499.32  for the purpose of child support enforcement is required by 
499.33  section 466(a)(13) of the Social Security Act, United States 
499.34  Code, title 42, section 666(a)(13). 
499.35     (c) If the applicant refuses to provide the applicant's 
499.36  social security number for data privacy reasons, the applicant 
500.1   must be given the opportunity to manually enter the applicant's 
500.2   social security number. 
500.3      Sec. 3.  Minnesota Statutes 2002, section 171.06, 
500.4   subdivision 3, is amended to read: 
500.5      Subd. 3.  [CONTENTS OF APPLICATION; OTHER INFORMATION.] (a) 
500.6   An application must: 
500.7      (1) state the full name, date of birth, sex, and residence 
500.8   address of the applicant; 
500.9      (2) as may be required by the commissioner, contain a 
500.10  description of the applicant and any other facts pertaining to 
500.11  the applicant, the applicant's driving privileges, and the 
500.12  applicant's ability to operate a motor vehicle with safety; 
500.13     (3) for a class C, class B, or class A driver's license, 
500.14  state: 
500.15     (i) the applicant's social security number or, for a class 
500.16  D driver's license, have a space for the applicant's social 
500.17  security number and state that providing the number is optional, 
500.18  or otherwise convey that the applicant is not required to enter 
500.19  the social security number; or 
500.20     (ii) if the applicant does not have a social security 
500.21  number and is applying for a Minnesota identification card, 
500.22  instruction permit, or class D provisional or driver's license, 
500.23  that the applicant certifies that the applicant does not have a 
500.24  social security number; 
500.25     (4) contain a space where the applicant may indicate a 
500.26  desire to make an anatomical gift according to paragraph (b); 
500.27  and 
500.28     (5) contain a notification to the applicant of the 
500.29  availability of a living will/health care directive designation 
500.30  on the license under section 171.07, subdivision 7.  
500.31     (b) If the applicant does not indicate a desire to make an 
500.32  anatomical gift when the application is made, the applicant must 
500.33  be offered a donor document in accordance with section 171.07, 
500.34  subdivision 5.  The application must contain statements 
500.35  sufficient to comply with the requirements of the Uniform 
500.36  Anatomical Gift Act (1987), sections 525.921 to 525.9224, so 
501.1   that execution of the application or donor document will make 
501.2   the anatomical gift as provided in section 171.07, subdivision 
501.3   5, for those indicating a desire to make an anatomical gift.  
501.4   The application must be accompanied by information describing 
501.5   Minnesota laws regarding anatomical gifts and the need for and 
501.6   benefits of anatomical gifts, and the legal implications of 
501.7   making an anatomical gift, including the law governing 
501.8   revocation of anatomical gifts.  The commissioner shall 
501.9   distribute a notice that must accompany all applications for and 
501.10  renewals of a driver's license or Minnesota identification 
501.11  card.  The notice must be prepared in conjunction with a 
501.12  Minnesota organ procurement organization that is certified by 
501.13  the federal Department of Health and Human Services and must 
501.14  include: 
501.15     (1) a statement that provides a fair and reasonable 
501.16  description of the organ donation process, the care of the donor 
501.17  body after death, and the importance of informing family members 
501.18  of the donation decision; and 
501.19     (2) a telephone number in a certified Minnesota organ 
501.20  procurement organization that may be called with respect to 
501.21  questions regarding anatomical gifts. 
501.22     (c) The application must be accompanied also by information 
501.23  containing relevant facts relating to:  
501.24     (1) the effect of alcohol on driving ability; 
501.25     (2) the effect of mixing alcohol with drugs; 
501.26     (3) the laws of Minnesota relating to operation of a motor 
501.27  vehicle while under the influence of alcohol or a controlled 
501.28  substance; and 
501.29     (4) the levels of alcohol-related fatalities and accidents 
501.30  in Minnesota and of arrests for alcohol-related violations. 
501.31     Sec. 4.  Minnesota Statutes 2002, section 171.07, is 
501.32  amended by adding a subdivision to read: 
501.33     Subd. 14.  [USE OF SOCIAL SECURITY NUMBER.] An applicant's 
501.34  social security number must not be displayed, encrypted, or 
501.35  encoded on the driver's license or Minnesota identification card 
501.36  or included in a magnetic strip or bar code used to store data 
502.1   on the license or Minnesota identification card. 
502.2      Sec. 5.  Minnesota Statutes 2002, section 518.551, 
502.3   subdivision 12, is amended to read: 
502.4      Subd. 12.  [OCCUPATIONAL LICENSE SUSPENSION.] (a) Upon 
502.5   motion of an obligee, if the court finds that the obligor is or 
502.6   may be licensed by a licensing board listed in section 214.01 or 
502.7   other state, county, or municipal agency or board that issues an 
502.8   occupational license and the obligor is in arrears in 
502.9   court-ordered child support or maintenance payments or both in 
502.10  an amount equal to or greater than three times the obligor's 
502.11  total monthly support and maintenance payments and is not in 
502.12  compliance with a written payment agreement pursuant to section 
502.13  518.553 that is approved by the court, a child support 
502.14  magistrate, or the public authority, the court shall direct the 
502.15  licensing board or other licensing agency to suspend the license 
502.16  under section 214.101.  The court's order must be stayed for 90 
502.17  days in order to allow the obligor to execute a written payment 
502.18  agreement pursuant to section 518.553.  The payment agreement 
502.19  must be approved by either the court or the public authority 
502.20  responsible for child support enforcement.  If the obligor has 
502.21  not executed or is not in compliance with a written payment 
502.22  agreement pursuant to section 518.553 after the 90 days expires, 
502.23  the court's order becomes effective.  If the obligor is a 
502.24  licensed attorney, the court shall report the matter to the 
502.25  lawyers professional responsibility board for appropriate action 
502.26  in accordance with the rules of professional conduct.  The 
502.27  remedy under this subdivision is in addition to any other 
502.28  enforcement remedy available to the court. 
502.29     (b) If a public authority responsible for child support 
502.30  enforcement finds that the obligor is or may be licensed by a 
502.31  licensing board listed in section 214.01 or other state, county, 
502.32  or municipal agency or board that issues an occupational license 
502.33  and the obligor is in arrears in court-ordered child support or 
502.34  maintenance payments or both in an amount equal to or greater 
502.35  than three times the obligor's total monthly support and 
502.36  maintenance payments and is not in compliance with a written 
503.1   payment agreement pursuant to section 518.553 that is approved 
503.2   by the court, a child support magistrate, or the public 
503.3   authority, the court or the public authority shall direct the 
503.4   licensing board or other licensing agency to suspend the license 
503.5   under section 214.101.  If the obligor is a licensed attorney, 
503.6   the public authority may report the matter to the lawyers 
503.7   professional responsibility board for appropriate action in 
503.8   accordance with the rules of professional conduct.  The remedy 
503.9   under this subdivision is in addition to any other enforcement 
503.10  remedy available to the public authority. 
503.11     (c) At least 90 days before notifying a licensing authority 
503.12  or the lawyers professional responsibility board under paragraph 
503.13  (b), the public authority shall mail a written notice to the 
503.14  license holder addressed to the license holder's last known 
503.15  address that the public authority intends to seek license 
503.16  suspension under this subdivision and that the license holder 
503.17  must request a hearing within 30 days in order to contest the 
503.18  suspension.  If the license holder makes a written request for a 
503.19  hearing within 30 days of the date of the notice, a court 
503.20  hearing or a hearing under section 484.702 must be held.  
503.21  Notwithstanding any law to the contrary, the license holder must 
503.22  be served with 14 days' notice in writing specifying the time 
503.23  and place of the hearing and the allegations against the license 
503.24  holder.  The notice may be served personally or by mail.  If the 
503.25  public authority does not receive a request for a hearing within 
503.26  30 days of the date of the notice, and the obligor does not 
503.27  execute a written payment agreement pursuant to section 518.553 
503.28  that is approved by the public authority within 90 days of the 
503.29  date of the notice, the public authority shall direct the 
503.30  licensing board or other licensing agency to suspend the 
503.31  obligor's license under paragraph (b), or shall report the 
503.32  matter to the lawyers professional responsibility board. 
503.33     (d) The public authority or the court shall notify the 
503.34  lawyers professional responsibility board for appropriate action 
503.35  in accordance with the rules of professional responsibility 
503.36  conduct or order the licensing board or licensing agency to 
504.1   suspend the license if the judge finds that: 
504.2      (1) the person is licensed by a licensing board or other 
504.3   state agency that issues an occupational license; 
504.4      (2) the person has not made full payment of arrearages 
504.5   found to be due by the public authority; and 
504.6      (3) the person has not executed or is not in compliance 
504.7   with a payment plan approved by the court, a child support 
504.8   magistrate, or the public authority. 
504.9      (e) Within 15 days of the date on which the obligor either 
504.10  makes full payment of arrearages found to be due by the court or 
504.11  public authority or executes and initiates good faith compliance 
504.12  with a written payment plan approved by the court, a child 
504.13  support magistrate, or the public authority, the court, a child 
504.14  support magistrate, or the public authority responsible for 
504.15  child support enforcement shall notify the licensing board or 
504.16  licensing agency or the lawyers professional responsibility 
504.17  board that the obligor is no longer ineligible for license 
504.18  issuance, reinstatement, or renewal under this subdivision. 
504.19     (f) In addition to the criteria established under this 
504.20  section for the suspension of an obligor's occupational license, 
504.21  a court, a child support magistrate, or the public authority may 
504.22  direct the licensing board or other licensing agency to suspend 
504.23  the license of a party who has failed, after receiving notice, 
504.24  to comply with a subpoena relating to a paternity or child 
504.25  support proceeding.  Notice to an obligor of intent to suspend 
504.26  must be served by first class mail at the obligor's last known 
504.27  address.  The notice must inform the obligor of the right to 
504.28  request a hearing.  If the obligor makes a written request 
504.29  within ten days of the date of the hearing, a hearing must be 
504.30  held.  At the hearing, the only issues to be considered are 
504.31  mistake of fact and whether the obligor received the subpoena. 
504.32     (g) The license of an obligor who fails to remain in 
504.33  compliance with an approved written payment agreement may be 
504.34  suspended.  Notice to the obligor of an intent to suspend under 
504.35  this paragraph must be served by first class mail at the 
504.36  obligor's last known address and must include a notice of 
505.1   hearing.  The notice must be served upon the obligor not less 
505.2   than ten days before the date of the hearing.  Prior to 
505.3   suspending a license for noncompliance with an approved written 
505.4   payment agreement, the public authority must mail to the 
505.5   obligor's last known address a written notice that (1) the 
505.6   public authority intends to seek suspension of the obligor's 
505.7   occupational license under this paragraph, and (2) the obligor 
505.8   must request a hearing, within 30 days of the date of the 
505.9   notice, to contest the suspension.  If, within 30 days of the 
505.10  date of the notice, the public authority does not receive a 
505.11  written request for a hearing and the obligor does not comply 
505.12  with an approved written payment agreement, the public authority 
505.13  must direct the licensing board or other licensing agency to 
505.14  suspend the obligor's license under paragraph (b), and, if the 
505.15  obligor is a licensed attorney, must report the matter to the 
505.16  lawyers professional responsibility board.  If the obligor makes 
505.17  a written request for a hearing within 30 days of the date of 
505.18  the notice, a court hearing must be held.  Notwithstanding any 
505.19  law to the contrary, the obligor must be served with 14 days' 
505.20  notice in writing specifying the time and place of the hearing 
505.21  and the allegations against the obligor.  The notice may be 
505.22  served personally or by mail to the obligor's last known 
505.23  address.  If the obligor appears at the hearing and the judge 
505.24  court determines that the obligor has failed to comply with an 
505.25  approved written payment agreement, the judge shall court or 
505.26  public authority must notify the occupational licensing board or 
505.27  other licensing agency to suspend the obligor's license under 
505.28  paragraph (c) (b) and, if the obligor is a licensed attorney, 
505.29  must report the matter to the lawyers professional 
505.30  responsibility board.  If the obligor fails to appear at the 
505.31  hearing, the public authority may court or public authority must 
505.32  notify the occupational or licensing board or other licensing 
505.33  agency to suspend the obligor's license under paragraph (c) (b), 
505.34  and if the obligor is a licensed attorney, must report the 
505.35  matter to the lawyers professional responsibility board. 
505.36     Sec. 6.  Minnesota Statutes 2002, section 518.551, 
506.1   subdivision 13, is amended to read: 
506.2      Subd. 13.  [DRIVER'S LICENSE SUSPENSION.] (a) Upon motion 
506.3   of an obligee, which has been properly served on the obligor and 
506.4   upon which there has been an opportunity for hearing, if a court 
506.5   finds that the obligor has been or may be issued a driver's 
506.6   license by the commissioner of public safety and the obligor is 
506.7   in arrears in court-ordered child support or maintenance 
506.8   payments, or both, in an amount equal to or greater than three 
506.9   times the obligor's total monthly support and maintenance 
506.10  payments and is not in compliance with a written payment 
506.11  agreement pursuant to section 518.553 that is approved by the 
506.12  court, a child support magistrate, or the public authority, the 
506.13  court shall order the commissioner of public safety to suspend 
506.14  the obligor's driver's license.  The court's order must be 
506.15  stayed for 90 days in order to allow the obligor to execute a 
506.16  written payment agreement pursuant to section 518.553.  The 
506.17  payment agreement must be approved by either the court or the 
506.18  public authority responsible for child support enforcement.  If 
506.19  the obligor has not executed or is not in compliance with a 
506.20  written payment agreement pursuant to section 518.553 after the 
506.21  90 days expires, the court's order becomes effective and the 
506.22  commissioner of public safety shall suspend the obligor's 
506.23  driver's license.  The remedy under this subdivision is in 
506.24  addition to any other enforcement remedy available to the 
506.25  court.  An obligee may not bring a motion under this paragraph 
506.26  within 12 months of a denial of a previous motion under this 
506.27  paragraph. 
506.28     (b) If a public authority responsible for child support 
506.29  enforcement determines that the obligor has been or may be 
506.30  issued a driver's license by the commissioner of public safety 
506.31  and the obligor is in arrears in court-ordered child support or 
506.32  maintenance payments or both in an amount equal to or greater 
506.33  than three times the obligor's total monthly support and 
506.34  maintenance payments and not in compliance with a written 
506.35  payment agreement pursuant to section 518.553 that is approved 
506.36  by the court, a child support magistrate, or the public 
507.1   authority, the public authority shall direct the commissioner of 
507.2   public safety to suspend the obligor's driver's license.  The 
507.3   remedy under this subdivision is in addition to any other 
507.4   enforcement remedy available to the public authority. 
507.5      (c) At least 90 days prior to notifying the commissioner of 
507.6   public safety according to paragraph (b), the public authority 
507.7   must mail a written notice to the obligor at the obligor's last 
507.8   known address, that it intends to seek suspension of the 
507.9   obligor's driver's license and that the obligor must request a 
507.10  hearing within 30 days in order to contest the suspension.  If 
507.11  the obligor makes a written request for a hearing within 30 days 
507.12  of the date of the notice, a court hearing must be held.  
507.13  Notwithstanding any law to the contrary, the obligor must be 
507.14  served with 14 days' notice in writing specifying the time and 
507.15  place of the hearing and the allegations against the obligor.  
507.16  The notice must include information that apprises the obligor of 
507.17  the requirement to develop a written payment agreement that is 
507.18  approved by a court, a child support magistrate, or the public 
507.19  authority responsible for child support enforcement regarding 
507.20  child support, maintenance, and any arrearages in order to avoid 
507.21  license suspension.  The notice may be served personally or by 
507.22  mail.  If the public authority does not receive a request for a 
507.23  hearing within 30 days of the date of the notice, and the 
507.24  obligor does not execute a written payment agreement pursuant to 
507.25  section 518.553 that is approved by the public authority within 
507.26  90 days of the date of the notice, the public authority shall 
507.27  direct the commissioner of public safety to suspend the 
507.28  obligor's driver's license under paragraph (b). 
507.29     (d) At a hearing requested by the obligor under paragraph 
507.30  (c), and on finding that the obligor is in arrears in 
507.31  court-ordered child support or maintenance payments or both in 
507.32  an amount equal to or greater than three times the obligor's 
507.33  total monthly support and maintenance payments, the district 
507.34  court or child support magistrate shall order the commissioner 
507.35  of public safety to suspend the obligor's driver's license or 
507.36  operating privileges unless the court or child support 
508.1   magistrate determines that the obligor has executed and is in 
508.2   compliance with a written payment agreement pursuant to section 
508.3   518.553 that is approved by the court, a child support 
508.4   magistrate, or the public authority. 
508.5      (e) An obligor whose driver's license or operating 
508.6   privileges are suspended may: 
508.7      (1) provide proof to the public authority responsible for 
508.8   child support enforcement that the obligor is in compliance with 
508.9   all written payment agreements pursuant to section 518.553; 
508.10     (2) bring a motion for reinstatement of the driver's 
508.11  license.  At the hearing, if the court or child support 
508.12  magistrate orders reinstatement of the driver's license, the 
508.13  court or child support magistrate must establish a written 
508.14  payment agreement pursuant to section 518.553; or 
508.15     (3) seek a limited license under section 171.30.  A limited 
508.16  license issued to an obligor under section 171.30 expires 90 
508.17  days after the date it is issued.  
508.18     Within 15 days of the receipt of that proof or a court 
508.19  order, the public authority shall inform the commissioner of 
508.20  public safety that the obligor's driver's license or operating 
508.21  privileges should no longer be suspended. 
508.22     (f) On January 15, 1997, and every two years after that, 
508.23  the commissioner of human services shall submit a report to the 
508.24  legislature that identifies the following information relevant 
508.25  to the implementation of this section: 
508.26     (1) the number of child support obligors notified of an 
508.27  intent to suspend a driver's license; 
508.28     (2) the amount collected in payments from the child support 
508.29  obligors notified of an intent to suspend a driver's license; 
508.30     (3) the number of cases paid in full and payment agreements 
508.31  executed in response to notification of an intent to suspend a 
508.32  driver's license; 
508.33     (4) the number of cases in which there has been 
508.34  notification and no payments or payment agreements; 
508.35     (5) the number of driver's licenses suspended; 
508.36     (6) the cost of implementation and operation of the 
509.1   requirements of this section; and 
509.2      (7) the number of limited licenses issued and number of 
509.3   cases in which payment agreements are executed and cases are 
509.4   paid in full following issuance of a limited license. 
509.5      (g) In addition to the criteria established under this 
509.6   section for the suspension of an obligor's driver's license, a 
509.7   court, a child support magistrate, or the public authority may 
509.8   direct the commissioner of public safety to suspend the license 
509.9   of a party who has failed, after receiving notice, to comply 
509.10  with a subpoena relating to a paternity or child support 
509.11  proceeding.  Notice to an obligor of intent to suspend must be 
509.12  served by first class mail at the obligor's last known address.  
509.13  The notice must inform the obligor of the right to request a 
509.14  hearing.  If the obligor makes a written request within ten days 
509.15  of the date of the hearing, a hearing must be held.  At the 
509.16  hearing, the only issues to be considered are mistake of fact 
509.17  and whether the obligor received the subpoena. 
509.18     (h) The license of an obligor who fails to remain in 
509.19  compliance with an approved written payment agreement may be 
509.20  suspended.  Notice to the obligor of an intent to suspend under 
509.21  this paragraph must be served by first class mail at the 
509.22  obligor's last known address and must include a notice of 
509.23  hearing.  The notice must be served upon the obligor not less 
509.24  than ten days before the date of the hearing.  Prior to 
509.25  suspending a license for noncompliance with an approved written 
509.26  payment agreement, the public authority must mail to the 
509.27  obligor's last known address a written notice that (1) the 
509.28  public authority intends to seek suspension of the obligor's 
509.29  driver's license under this paragraph, and (2) the obligor must 
509.30  request a hearing, within 30 days of the date of the notice, to 
509.31  contest the suspension.  If, within 30 days of the date of the 
509.32  notice, the public authority does not receive a written request 
509.33  for a hearing and the obligor does not comply with an approved 
509.34  written payment agreement, the public authority must direct the 
509.35  department of public safety to suspend the obligor's license 
509.36  under paragraph (b).  If the obligor makes a written request for 
510.1   a hearing within 30 days of the date of the notice, a court 
510.2   hearing must be held.  Notwithstanding any law to the contrary, 
510.3   the obligor must be served with 14 days' notice in writing 
510.4   specifying the time and place of the hearing and the allegations 
510.5   against the obligor.  The notice may be served personally or by 
510.6   mail at the obligor's last known address.  If the obligor 
510.7   appears at the hearing and the judge court determines that the 
510.8   obligor has failed to comply with an approved written payment 
510.9   agreement, the judge court or public authority shall notify the 
510.10  department of public safety to suspend the obligor's license 
510.11  under paragraph (c) (b).  If the obligor fails to appear at the 
510.12  hearing, the public authority may court or public authority must 
510.13  notify the department of public safety to suspend the obligor's 
510.14  license under paragraph (c) (b). 
510.15     Sec. 7.  Laws 1997, chapter 245, article 2, section 11, is 
510.16  amended to read: 
510.17     Sec. 11.  [FEDERAL FUNDS FOR VISITATION AND ACCESS.] 
510.18     The commissioner of human services may accept on behalf of 
510.19  the state any federal funding received under Public Law Number 
510.20  104-193 for access and visitation programs, and shall transfer 
510.21  these funds to the state court administrator for the cooperation 
510.22  for the children pilot project and the parent education program 
510.23  under Minnesota Statutes, section 518.571 must administer the 
510.24  funds for the activities allowed under federal law.  The 
510.25  commissioner may distribute the funds on a competitive basis and 
510.26  must monitor, evaluate, and report on the access and visitation 
510.27  programs in accordance with any applicable regulations. 
510.28                             ARTICLE 16
510.29       CRIMINAL JUSTICE APPROPRIATIONS AND POLICY PROVISIONS
510.30  Section 1.  [CRIMINAL JUSTICE APPROPRIATIONS.] 
510.31     The sums shown in the columns marked "APPROPRIATIONS" are 
510.32  appropriated from the general fund, or another named fund, to 
510.33  the agencies and for the purposes specified in this act, to be 
510.34  available for the fiscal years indicated for each purpose.  The 
510.35  figures "2004" and "2005," where used in this act, mean that the 
510.36  appropriation or appropriations listed under them are available 
511.1   for the year ending June 30, 2004, or June 30, 2005, 
511.2   respectively.  The term "first year" means the fiscal year 
511.3   ending June 30, 2004, and the term "second year" means the 
511.4   fiscal year ending June 30, 2005. 
511.5                           SUMMARY BY FUND
511.6                           2004          2005           TOTAL
511.7   General            $ 421,397,000  $ 426,702,000 $  848,099,000
511.8   Special Revenue    
511.9   Fund                    1,000,000      1,000,000      2,000,000 
511.10  TOTAL              $ 422,397,000  $ 427,702,000 $  850,099,000
511.11                                             APPROPRIATIONS 
511.12                                         Available for the Year 
511.13                                             Ending June 30 
511.14                                            2004         2005 
511.15  Sec. 2.  CORRECTIONS 
511.16  Subdivision 1.  Total 
511.17  Appropriation                      $368,202,000   $373,507,000
511.18                          Summary by Fund
511.19  General Fund                         367,202,000    372,507,000
511.20  Special Revenue                        1,000,000      1,000,000
511.21  The amounts that may be spent from this 
511.22  appropriation for each program are 
511.23  specified in the following subdivisions.
511.24  Subd. 2.  Correctional 
511.25  Institutions  
511.26                          Summary by Fund 
511.27  General Fund                         236,579,000    239,697,000
511.28  Special Revenue                          630,000        630,000 
511.29  If the commissioner contracts with 
511.30  other states, local units of 
511.31  government, or the federal government 
511.32  to rent beds in the Rush City 
511.33  correctional facility, the commissioner 
511.34  shall charge a per diem under the 
511.35  contract, to the extent possible, that 
511.36  is equal to or greater than the per 
511.37  diem cost of housing Minnesota inmates 
511.38  in the facility.  The per diem cost for 
511.39  housing inmates of other states, local 
511.40  units of government, or the federal 
511.41  government at this facility shall be 
511.42  based on the assumption that the 
511.43  facility is at or near capacity.  
511.44  Notwithstanding any laws to the 
511.45  contrary, the commissioner may use the 
511.46  per diem appropriation to operate the 
511.47  state correctional system. 
511.48  No portion of this appropriation may be 
511.49  used for the faith-based prerelease 
511.50  program described in Laws 2001, First 
512.1   Special Session chapter 9, article 18, 
512.2   section 3, subdivision 2.  
512.3   Subd. 3.  Juvenile Services 
512.4       13,035,000     13,035,000
512.5   Subd. 4.  Community Services          
512.6                           Summary by Fund 
512.7   General Fund                         102,941,000    105,128,000
512.8   Special Revenue                          120,000        120,000
512.9   Of the general fund appropriation, 
512.10  $3,300,000 the first year and 
512.11  $4,400,000 the second year are for 
512.12  grants to counties to assist them to 
512.13  incarcerate short-term offenders.  The 
512.14  commissioner shall make the grants in 
512.15  an equitable manner based on the total 
512.16  amount available for the grants, each 
512.17  county's proportionate share of 
512.18  offenders affected by the changes made 
512.19  to Minnesota Statutes, section 609.105, 
512.20  in this article, and the actual number 
512.21  of bed days used by each county to 
512.22  incarcerate these offenders.  The 
512.23  grants may not exceed the actual cost 
512.24  per day incurred by a county.  A county 
512.25  seeking a grant shall report to the 
512.26  commissioner on offenders affected by 
512.27  the changes made to Minnesota Statutes, 
512.28  section 609.105, in this article.  The 
512.29  report must include the number of these 
512.30  offenders for the reporting period, the 
512.31  actual number of bed days used for 
512.32  these offenders, the costs associated 
512.33  with this, and any other information 
512.34  requested by the commissioner.  These 
512.35  reports are due on May 15, 2003, 
512.36  September 15, 2003, December 15, 2003, 
512.37  March 15, 2004, June 15, 2004, 
512.38  September 15, 2004, December 15, 2004, 
512.39  March 15, 2005, and June 15, 2005.  The 
512.40  commissioner shall make the grants 
512.41  within a month of receiving the 
512.42  required reports from counties.  
512.43  Of the general fund appropriation, 
512.44  $155,000 the first year and $155,000 
512.45  the second year are for two agency 
512.46  positions to administer the restorative 
512.47  justice program. 
512.48  Of the general fund appropriation, 
512.49  $475,000 the first year and $475,000 
512.50  the second year are for restorative 
512.51  justice grants.  
512.52  Subd. 5.  Operations Support 
512.53                          Summary by Fund
512.54  General Fund                          14,647,000     14,647,000
512.55  Special Revenue                          250,000        250,000
512.56  Sec. 3.  BOARD OF PUBLIC DEFENSE      53,759,000     53,759,000
513.1   Budget reductions must be allocated 
513.2   proportionately between operating costs 
513.3   and grant programs. 
513.4   Sec. 4.  SENTENCING GUIDELINES 
513.5   COMMISSION                               436,000        436,000
513.6      Sec. 5.  Minnesota Statutes 2002, section 243.53, 
513.7   subdivision 1, is amended to read: 
513.8      Subdivision 1.  [SEPARATE CELLS.] (a) When there are 
513.9   sufficient cells available, each inmate shall be confined in a 
513.10  separate cell.  Each inmate shall be confined in a separate cell 
513.11  in institutions classified by the commissioner as custody level 
513.12  five and six institutions, except where the commissioner deems 
513.13  necessary.  This requirement does not apply to the following: 
513.14     (1) geriatric dormitory-type facilities; 
513.15     (2) honor dormitory-type facilities; and 
513.16     (3) any other multiple occupancy facility at a custody 
513.17  level five or six institution that confines inmates who could be 
513.18  confined in an institution at custody level four or lower. 
513.19     (b) Correctional institutions classified by the 
513.20  commissioner as custody level one, two, three, or four 
513.21  institutions must permit multiple occupancy, except segregation 
513.22  units, to the greatest extent possible. 
513.23     (c) Correctional institutions classified by the 
513.24  commissioner as custody level five must permit multiple 
513.25  occupancy not to exceed the limits of facility infrastructure 
513.26  and programming space. 
513.27     Sec. 6.  [243.557] [INMATE MEALS.] 
513.28     Where inmates in a state correctional facility are not 
513.29  routinely absent from the facility for work or other purposes, 
513.30  the commissioner must make three meals available Monday through 
513.31  Friday, excluding holidays, and at least two meals available on 
513.32  Saturdays, Sundays, and holidays. 
513.33     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
513.34     Sec. 7.  Minnesota Statutes 2002, section 357.021, 
513.35  subdivision 6, is amended to read: 
513.36     Subd. 6.  [SURCHARGES ON CRIMINAL AND TRAFFIC OFFENDERS.] 
513.37  (a) The court shall impose and the court administrator shall 
514.1   collect a $35 $60 surcharge on every person convicted of any 
514.2   felony, gross misdemeanor, misdemeanor, or petty misdemeanor 
514.3   offense, other than a violation of a law or ordinance relating 
514.4   to vehicle parking, for which there shall be a $3 surcharge.  
514.5   The surcharge shall be imposed whether or not the person is 
514.6   sentenced to imprisonment or the sentence is stayed.  
514.7      (b) If the court fails to impose a surcharge as required by 
514.8   this subdivision, the court administrator shall show the 
514.9   imposition of the surcharge, collect the surcharge and correct 
514.10  the record. 
514.11     (c) The court may not waive payment of the surcharge 
514.12  required under this subdivision.  Upon a showing of indigency or 
514.13  undue hardship upon the convicted person or the convicted 
514.14  person's immediate family, the sentencing court may authorize 
514.15  payment of the surcharge in installments. 
514.16     (d) The court administrator or other entity collecting a 
514.17  surcharge shall forward it to the state treasurer. 
514.18     (e) If the convicted person is sentenced to imprisonment 
514.19  and has not paid the surcharge before the term of imprisonment 
514.20  begins, the chief executive officer of the correctional facility 
514.21  in which the convicted person is incarcerated shall collect the 
514.22  surcharge from any earnings the inmate accrues from work 
514.23  performed in the facility or while on conditional release.  The 
514.24  chief executive officer shall forward the amount collected to 
514.25  the state treasurer. 
514.26     Sec. 8.  Minnesota Statutes 2002, section 357.021, 
514.27  subdivision 7, is amended to read: 
514.28     Subd. 7.  [DISBURSEMENT OF SURCHARGES BY STATE TREASURER.] 
514.29  (a) Except as provided in paragraphs (b) and (c), the state 
514.30  treasurer shall disburse surcharges received under subdivision 6 
514.31  and section 97A.065, subdivision 2, as follows: 
514.32     (1) one percent shall be credited to the game and fish fund 
514.33  to provide peace officer training for employees of the 
514.34  department of natural resources who are licensed under sections 
514.35  626.84 to 626.863, and who possess peace officer authority for 
514.36  the purpose of enforcing game and fish laws; 
515.1      (2) 39 percent shall be credited to the peace officers 
515.2   training account in the special revenue fund; and 
515.3      (3) 60 percent shall be credited to the general fund.  
515.4      (b) The state treasurer shall credit $3 of each surcharge 
515.5   received under subdivision 6 and section 97A.065, subdivision 2, 
515.6   to a criminal justice special projects account in the special 
515.7   revenue fund.  This account is available for appropriation to 
515.8   the commissioner of public safety for grants to law enforcement 
515.9   agencies and for other purposes authorized by the legislature. 
515.10     (c) In addition to any amounts credited under paragraph 
515.11  (a), the state treasurer shall credit $7 $32 of each surcharge 
515.12  received under subdivision 6 and section 97A.065, subdivision 2, 
515.13  and the $3 parking surcharge, to the general fund. 
515.14     Sec. 9.  [481.011] [SURCHARGE.] 
515.15     (a) The supreme court is requested to impose an annual 
515.16  surcharge of $200 to be added to the fee set by the supreme 
515.17  court under section 481.01 for attorney license renewals.  Money 
515.18  collected under the surcharge must be paid into the fund 
515.19  established by section 481.01 and is appropriated annually to 
515.20  the supreme court for the support of the public defender system 
515.21  established by chapter 611. 
515.22     (b) This section expires on June 30, 2007. 
515.23     Sec. 10.  Minnesota Statutes 2002, section 609.105, 
515.24  subdivision 1, is amended to read: 
515.25     Subdivision 1.  In a felony sentence to imprisonment, when 
515.26  the remaining term of imprisonment is for more than one year 180 
515.27  days or less, the defendant shall commit the defendant be 
515.28  committed to the custody of the commissioner of corrections and 
515.29  must serve the remaining term of imprisonment at a workhouse, 
515.30  work farm, county jail, or other place authorized by law.  
515.31     Sec. 11.  Minnesota Statutes 2002, section 609.105, is 
515.32  amended by adding a subdivision to read: 
515.33     Subd. 1a.  [DEFINITIONS.] (a) The terms in this subdivision 
515.34  apply to this section. 
515.35     (b) "Remaining term of imprisonment" as applied to inmates 
515.36  whose crimes were committed before August 1, 1993, is the period 
516.1   of time for which an inmate is committed to the custody of the 
516.2   commissioner of corrections minus earned good time and jail 
516.3   credit, if any. 
516.4      (c) "Remaining term of imprisonment" as applied to inmates 
516.5   whose crimes were committed on or after August 1, 1993, is the 
516.6   period of time equal to two-thirds of the inmate's executed 
516.7   sentence, minus jail credit, if any. 
516.8      Sec. 12.  Minnesota Statutes 2002, section 609.105, is 
516.9   amended by adding a subdivision to read: 
516.10     Subd. 1b.  [SENTENCE TO MORE THAN 180 DAYS.] A felony 
516.11  sentence to imprisonment when the warrant of commitment has a 
516.12  remaining term of imprisonment for more than 180 days shall 
516.13  commit the defendant to the custody of the commissioner of 
516.14  corrections. 
516.15     Sec. 13.  Minnesota Statutes 2002, section 609.145, is 
516.16  amended by adding a subdivision to read: 
516.17     Subd. 3.  [JAIL CREDIT DETERMINATION.] The appropriate 
516.18  probation officer must provide to the court prior to the 
516.19  sentencing hearing the amount of time the offender has credit 
516.20  for prior imprisonment.  The court must pronounce the amount of 
516.21  credit for prior imprisonment at the time of sentencing.  
516.22     Sec. 14.  Minnesota Statutes 2002, section 609.2231, is 
516.23  amended by adding a subdivision to read: 
516.24     Subd. 7.  [COMMUNITY CRIME PREVENTION GROUP MEMBERS.] (a) A 
516.25  person is guilty of a gross misdemeanor who: 
516.26     (1) assaults a community crime prevention group member 
516.27  while the member is engaged in neighborhood patrol; 
516.28     (2) should reasonably know that the victim is a community 
516.29  crime prevention group member engaged in neighborhood patrol; 
516.30  and 
516.31     (3) inflicts demonstrable bodily harm. 
516.32     (b) As used in this subdivision, "community crime 
516.33  prevention group" means a community group focused on community 
516.34  safety and crime prevention that: 
516.35     (1) is organized for the purpose of discussing community 
516.36  safety and patrolling community neighborhoods for criminal 
517.1   activity; 
517.2      (2) is designated and trained by the local law enforcement 
517.3   agency as a community crime prevention group; or 
517.4      (3) interacts with local law enforcement regarding 
517.5   community safety issues. 
517.6      Sec. 15.  [611.254] [OVERSIGHT OF CORRECTIONAL FUNCTIONS.] 
517.7      Subdivision 1.  [DEFINITION.] As used in this section, 
517.8   "administrative agency" or "agency" means any division, 
517.9   official, or employee of the department of corrections, 
517.10  including the commissioner of corrections, and any state 
517.11  correctional facility licensed or inspected by the commissioner 
517.12  of corrections, whether public or private, established and 
517.13  operated for the detention and confinement of adults or 
517.14  juveniles, but does not include:  
517.15     (1) any court or judge; 
517.16     (2) any member of the senate or house of representatives of 
517.17  the state of Minnesota; 
517.18     (3) the governor or the governor's personal staff; 
517.19     (4) any instrumentality of the federal government of the 
517.20  United States; or 
517.21     (5) any interstate compact.  
517.22     Subd. 2.  [INVESTIGATION.] The state public defender has 
517.23  the authority to investigate decisions, acts, and other matters 
517.24  of the department of corrections to promote the highest 
517.25  attainable standards of competence, efficiency, and justice in 
517.26  the administration of corrections.  The state public defender 
517.27  may delegate any of this authority or these duties.  
517.28     Subd. 3.  [POWERS.] (a) The state public defender may: 
517.29     (1) prescribe the methods by which complaints are to be 
517.30  made, reviewed, and acted upon; provided, however, that the 
517.31  state public defender may not levy a complaint fee; 
517.32     (2) determine the scope and manner of investigations to be 
517.33  made; 
517.34     (3) except as otherwise provided, determine the form, 
517.35  frequency, and distribution of conclusions, recommendations, and 
517.36  proposals; 
518.1      (4) investigate, upon a complaint, any action of an 
518.2   administrative agency; 
518.3      (5) request and be given access to information in the 
518.4   possession of an administrative agency deemed necessary for the 
518.5   discharge of responsibilities; 
518.6      (6) examine the records and documents of an administrative 
518.7   agency; 
518.8      (7) enter and inspect, at any time, premises within the 
518.9   control of an administrative agency; 
518.10     (8) subpoena any person to appear, give testimony, or 
518.11  produce documentary or other evidence that the state public 
518.12  defender deems relevant to a matter under inquiry, and petition 
518.13  the appropriate state court to enforce the subpoena; provided, 
518.14  however, that any witness at a hearing or before an 
518.15  investigation possesses the same privileges reserved to a 
518.16  witness in the courts or under the laws of this state; and 
518.17     (9) bring an action in an appropriate state court to 
518.18  provide the operation of the powers provided in this subdivision.
518.19     (b) The provisions of this section are in addition to other 
518.20  provisions of law under which any remedy or right of appeal or 
518.21  objection is provided for any person, or any procedure provided 
518.22  for inquiry or investigation concerning any matter.  Nothing in 
518.23  this section shall be construed to limit or affect any other 
518.24  remedy or right of appeal or objection nor shall it be deemed 
518.25  part of an exclusionary process.  
518.26     Subd. 4.  [ACTIONS AGAINST STATE PUBLIC DEFENDER.] No 
518.27  proceeding or civil action shall be commenced against the state 
518.28  public defender or staff members, or a person delegated the 
518.29  state public defender's duties or authority under subdivision 2, 
518.30  for actions taken pursuant to the provisions of this section. 
518.31     Subd. 5.  [MATTERS APPROPRIATE FOR INVESTIGATION.] In 
518.32  selecting matters for attention, the state public defender 
518.33  should address particularly actions of an administrative agency, 
518.34  which might be: 
518.35     (1) contrary to law or rule; 
518.36     (2) unreasonable, unfair, oppressive, or inconsistent with 
519.1   any policy or judgment of an administrative agency; or 
519.2      (3) mistaken in law or arbitrary in the ascertainment of 
519.3   facts.  
519.4      Subd. 6.  [COMPLAINTS.] (a) The state public defender may 
519.5   receive a complaint from any source concerning an action of an 
519.6   administrative agency.  
519.7      (b) The state public defender may exercise powers without 
519.8   regard to the finality of any action of an administrative 
519.9   agency; however, the state public defender may require a 
519.10  complainant to pursue other remedies or channels of complaint 
519.11  open to the complainant before accepting or investigating the 
519.12  complaint.  
519.13     (c) After completing investigation of a complaint, the 
519.14  state public defender shall inform the complainant, the 
519.15  administrative agency, and the official or employee of the 
519.16  action taken.  
519.17     (d) A letter to the state public defender from a person in 
519.18  an institution under the control of an administrative agency 
519.19  must be forwarded immediately and unopened to the state public 
519.20  defender's office.  A reply from the state public defender to 
519.21  the person must be delivered unopened to the person, promptly 
519.22  after its receipt by the institution.  No complainant shall be 
519.23  punished nor shall the general condition of the complainant's 
519.24  confinement or treatment be unfavorably altered as a result of 
519.25  the complainant having made a complaint to the state public 
519.26  defender.  
519.27     Subd. 7.  [RECOMMENDATIONS.] (a) If, after duly considering 
519.28  a complaint and whatever material the state public defender 
519.29  deems pertinent, the state public defender is of the opinion 
519.30  that the complaint is valid, the state public defender may 
519.31  recommend that an administrative agency should:  
519.32     (1) consider the matter further; 
519.33     (2) modify or cancel its actions; 
519.34     (3) alter a ruling; 
519.35     (4) explain more fully the action in question; or 
519.36     (5) take any other step that the state public defender 
520.1   recommends to the administrative agency involved.  
520.2      (b) If the state public defender so requests, the agency 
520.3   shall within the time the state public defender specifies, 
520.4   inform the state public defender about the action taken on the 
520.5   state public defender's recommendation or the reasons for not 
520.6   complying with it.  
520.7      Subd. 8.  [ACCESS TO DATA.] Notwithstanding section 13.384 
520.8   or 13.85, the state public defender has access to corrections 
520.9   and detention data and medical data maintained by an agency and 
520.10  classified as private data on individuals or confidential data 
520.11  on individuals when access to the data is necessary for the 
520.12  state public defender to perform the powers under this section.  
520.13     Subd. 9.  [PUBLICATION.] The state public defender may 
520.14  publish conclusions and suggestions by transmitting them to the 
520.15  office of the governor.  Before announcing a conclusion or 
520.16  recommendation that expressly or impliedly criticizes an 
520.17  administrative agency, or any person, the state public defender 
520.18  shall consult with that agency or person.  When publishing an 
520.19  opinion adverse to an administrative agency, or any person, the 
520.20  state public defender shall include in such publication any 
520.21  statement of reasonable length made to the state public defender 
520.22  by that agency or person in defense or mitigation of the action. 
520.23     Subd. 10.  [COMPELLED TESTIMONY.] Neither the state public 
520.24  defender nor any member of the state public defender's staff or 
520.25  a person delegated the state public defender's duties or 
520.26  authority under subdivision 2 shall be compelled to testify or 
520.27  to produce evidence in any judicial or administrative proceeding 
520.28  with respect to any matter involving the exercise of these 
520.29  official duties except as may be necessary to enforce the 
520.30  provisions of this section. 
520.31     Sec. 16.  [611A.0392] [NOTICE TO COMMUNITY CRIME PREVENTION 
520.32  GROUP.] 
520.33     Subdivision 1.  [DEFINITIONS.] (a) As used in this section, 
520.34  the following terms have the meanings given them. 
520.35     (b) "Cities of the first class" has the meaning given in 
520.36  section 410.01. 
521.1      (c) "Community crime prevention group" means a community 
521.2   group focused on community safety and crime prevention that: 
521.3      (1) meets regularly for the purpose of discussing community 
521.4   safety and patrolling community neighborhoods for criminal 
521.5   activity; 
521.6      (2) is previously designated by the local law enforcement 
521.7   agency as a community crime prevention group; and 
521.8      (3) interacts regularly with the police regarding community 
521.9   safety issues. 
521.10     Subd. 2.  [NOTICE.] (a) A law enforcement agency that is 
521.11  responsible for arresting individuals who commit crimes within 
521.12  cities of the first class shall make reasonable efforts to 
521.13  disclose certain information in a timely manner to the 
521.14  designated leader of a community crime prevention group that has 
521.15  reported criminal activity, excluding petty misdemeanors, to law 
521.16  enforcement.  The law enforcement agency shall make reasonable 
521.17  efforts to disclose information on the final outcome of the 
521.18  investigation into the criminal activity including, but not 
521.19  limited to, where appropriate, the decision to arrest or not 
521.20  arrest the person and whether the matter was referred to a 
521.21  prosecuting authority.  If the matter is referred to a 
521.22  prosecuting authority, the law enforcement agency must notify 
521.23  the prosecuting authority of the community crime prevention 
521.24  group's request for notice under this subdivision. 
521.25     (b) A prosecuting authority who is responsible for filing 
521.26  charges against or prosecuting a person arrested for a criminal 
521.27  offense in cities of the first class shall make reasonable 
521.28  efforts to disclose certain information in a timely manner to 
521.29  the designated leader of a community crime prevention group that 
521.30  has reported specific criminal activity to law enforcement.  The 
521.31  prosecuting authority shall make reasonable efforts to disclose 
521.32  information on the final outcome of the criminal proceeding that 
521.33  resulted from the arrest including, but not limited to, where 
521.34  appropriate, the decision to dismiss or not file charges against 
521.35  the arrested person. 
521.36     (c) A community crime prevention group that would like to 
522.1   receive written or Internet notice under this subdivision must 
522.2   request the law enforcement agency and the prosecuting authority 
522.3   where the specific alleged criminal conduct occurred to provide 
522.4   notice to the community crime prevention group leader.  The 
522.5   community crime prevention group must provide the law 
522.6   enforcement agency with the name, address, and telephone number 
522.7   of the community crime prevention group leader and the preferred 
522.8   method of communication. 
522.9      Sec. 17.  [REPEALER.] 
522.10     Minnesota Statutes 2002, sections 241.41; 241.42; 241.43; 
522.11  241.44; 241.441; and 241.45, are repealed.  
522.12     Sec. 18.  [EFFECTIVE DATES.] 
522.13     Sections 5 and 14 are effective the day following final 
522.14  enactment, section 14 applies to crimes committed on or after 
522.15  that date.  Sections 7, 8, 13, and 16 are effective July 1, 
522.16  2003, and apply to crimes committed on or after that date.  
522.17  Sections 10 to 12 are effective July 1, 2003, and apply to 
522.18  persons incarcerated or under correctional supervision and 
522.19  crimes committed on or after that date.