1.1                          A bill for an act 
  1.2             relating to human services; making changes to 
  1.3             licensing provisions; regulating child protection 
  1.4             dispositions; clarifying a mental health case 
  1.5             management provision; changing a provision under child 
  1.6             welfare targeted case management; regulating child 
  1.7             care, long-term care, and health care; amending 
  1.8             Minnesota Statutes 2002, sections 13.3806, by adding a 
  1.9             subdivision; 13.43, subdivision 2, by adding a 
  1.10            subdivision; 62A.042; 62A.28; 62A.30, subdivision 2, 
  1.11            by adding a subdivision; 62C.14, subdivision 14; 
  1.12            62H.01; 62H.02; 62H.04; 62J.23, subdivision 2; 62T.02, 
  1.13            by adding a subdivision; 72A.20, by adding a 
  1.14            subdivision; 119B.011, by adding a subdivision; 
  1.15            119B.02, subdivision 4; 119B.03, subdivisions 3, 6a, 
  1.16            by adding a subdivision; 144.2215; 145C.01, 
  1.17            subdivision 7; 147.03, subdivision 1; 198.261; 243.55, 
  1.18            subdivision 1; 245.462, subdivision 18; 245.464, by 
  1.19            adding a subdivision; 245.4881, subdivision 1; 
  1.20            245.814, subdivision 1; 245A.02, subdivisions 2a, 5a, 
  1.21            7, 10, 14, by adding a subdivision; 245A.03, 
  1.22            subdivision 3; 245A.04, subdivisions 5, 6, 7, by 
  1.23            adding a subdivision; 245A.05; 245A.06, subdivisions 
  1.24            2, 4; 245A.07, subdivisions 2, 2a, 3; 245A.08, 
  1.25            subdivision 5; 245A.14, subdivision 4; 245A.16, 
  1.26            subdivision 4; 245A.22, subdivision 2; 245B.02, by 
  1.27            adding a subdivision; 245B.05, subdivision 2; 245B.07, 
  1.28            subdivisions 8, 12; 252.28, subdivision 1; 253B.02, by 
  1.29            adding subdivisions; 253B.03, by adding a subdivision; 
  1.30            253B.185, by adding a subdivision; 256.01, by adding 
  1.31            subdivisions; 256.955, subdivisions 2, 2b; 256B.055, 
  1.32            by adding a subdivision; 256B.0625, by adding a 
  1.33            subdivision; 256B.0911, subdivision 4a; 256B.0916, 
  1.34            subdivision 2; 256B.431, by adding a subdivision; 
  1.35            256B.49, by adding a subdivision; 256D.051, 
  1.36            subdivision 6c; 256F.10, subdivision 5; 256J.01, 
  1.37            subdivision 1; 256J.08, subdivisions 73, 82a; 256J.21, 
  1.38            subdivision 3; 256J.415; 256J.425, subdivision 5; 
  1.39            260C.007, subdivision 18; 260C.201, subdivision 11; 
  1.40            260C.212, subdivision 5; Minnesota Statutes 2003 
  1.41            Supplement, sections 119B.011, subdivisions 6, 8, 10, 
  1.42            15, 20; 119B.03, subdivision 4; 119B.05, subdivision 
  1.43            1; 119B.09, subdivision 7; 119B.12, subdivision 2; 
  1.44            119B.125, subdivisions 1, 2; 119B.13, subdivisions 1, 
  1.45            1a; 119B.189, subdivisions 2, 4; 119B.19, subdivision 
  1.46            1; 119B.24; 119B.25, subdivision 2; 128C.05, 
  2.1             subdivision 1a; 241.021, subdivision 6; 245.4874; 
  2.2             245A.03, subdivision 2; 245A.04, subdivision 1; 
  2.3             245A.08, subdivisions 1, 2a; 245A.085; 245A.11, 
  2.4             subdivisions 2a, 2b; 245A.16, subdivision 1; 245A.22, 
  2.5             subdivision 3; 245B.03, subdivision 2; 245C.02, 
  2.6             subdivision 18; 245C.03, subdivision 1, by adding a 
  2.7             subdivision; 245C.05, subdivisions 1, 2, 5, 6; 
  2.8             245C.08, subdivisions 2, 3, 4; 245C.09, subdivision 1; 
  2.9             245C.13, subdivision 1; 245C.14, subdivision 1; 
  2.10            245C.15, subdivisions 2, 3, 4; 245C.16, subdivision 1; 
  2.11            245C.17, subdivisions 1, 3; 245C.18; 245C.20; 245C.21, 
  2.12            subdivision 3, by adding a subdivision; 245C.22, 
  2.13            subdivisions 3, 4, 5, 6; 245C.23, subdivisions 1, 2; 
  2.14            245C.25; 245C.26; 245C.27, subdivisions 1, 2; 245C.28, 
  2.15            subdivisions 1, 2, 3; 245C.29, subdivision 2; 246.15, 
  2.16            by adding a subdivision; 252.27, subdivision 2a; 
  2.17            256.01, subdivision 2; 256.045, subdivisions 3, 3b; 
  2.18            256.046, subdivision 1; 256.955, subdivision 2a; 
  2.19            256.98, subdivision 8; 256B.0596; 256B.06, subdivision 
  2.20            4; 256B.0622, subdivision 8; 256B.0625, subdivision 9; 
  2.21            256B.0915, subdivisions 3a, 3b; 256B.431, subdivision 
  2.22            32; 256B.69, subdivisions 4, 6b; 256D.03, subdivisions 
  2.23            3, 4; 256J.09, subdivision 3b; 256J.21, subdivision 2; 
  2.24            256J.24, subdivision 5; 256J.32, subdivisions 2, 8; 
  2.25            256J.37, subdivision 9; 256J.425, subdivisions 1, 4, 
  2.26            6; 256J.46, subdivision 1; 256J.49, subdivision 4; 
  2.27            256J.515; 256J.521, subdivisions 1, 2; 256J.53, 
  2.28            subdivision 2; 256J.56; 256J.57, subdivision 1; 
  2.29            256J.626, subdivisions 2, 6, 7; 256J.751, subdivision 
  2.30            2; 256J.95, subdivisions 1, 3, 11, 12, 19; 295.50, 
  2.31            subdivision 9b; 295.53, subdivision 1; 626.556, 
  2.32            subdivisions 10, 10i; 626.557, subdivision 9d; Laws 
  2.33            1997, chapter 245, article 2, section 11, as amended; 
  2.34            proposing coding for new law in Minnesota Statutes, 
  2.35            chapters 62J; 62Q; 119B; 144; 151; 245A; 245B; 246B; 
  2.36            253B; 256B; repealing Minnesota Statutes 2002, 
  2.37            sections 62A.309; 62H.07; 119B.211; 256D.051, 
  2.38            subdivision 17; Minnesota Statutes 2003 Supplement, 
  2.39            section 245C.02, subdivision 17; Laws 2000, chapter 
  2.40            489, article 1, section 36; Laws 2003, First Special 
  2.41            Session chapter 14, article 3, section 56; Minnesota 
  2.42            Rules, parts 9525.1600; 9543.0040, subpart 3; 
  2.43            9543.1000; 9543.1010; 9543.1020; 9543.1030; 9543.1040; 
  2.44            9543.1050; 9543.1060. 
  2.45  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.46                             ARTICLE 1 
  2.47                           HUMAN SERVICES 
  2.48     Section 1.  Minnesota Statutes 2002, section 245.814, 
  2.49  subdivision 1, is amended to read: 
  2.50     Subdivision 1.  [INSURANCE FOR FOSTER HOME PROVIDERS.] The 
  2.51  commissioner of human services shall within the appropriation 
  2.52  provided purchase and provide insurance to individuals licensed 
  2.53  as foster home providers to cover their liability for: 
  2.54     (1) injuries or property damage caused or sustained by 
  2.55  persons in foster care in their home; and 
  2.56     (2) actions arising out of alienation of affections 
  2.57  sustained by the birth parents of a foster child or birth 
  3.1   parents or children of a foster adult.  
  3.2      For purposes of this subdivision, insurance for homes 
  3.3   licensed to provide adult foster care shall be limited to family 
  3.4   adult foster care homes as defined in section 144D.01, 
  3.5   subdivision 7, and family adult day services licensed under 
  3.6   section 245A.143. 
  3.7      Sec. 2.  Minnesota Statutes 2002, section 245A.02, 
  3.8   subdivision 2a, is amended to read: 
  3.9      Subd. 2a.  [ADULT DAY CARE OR FAMILY ADULT DAY SERVICES.] 
  3.10  "Adult day care," means "adult day services," and "family adult 
  3.11  day services" mean a program operating less than 24 hours per 
  3.12  day that provides functionally impaired adults with an 
  3.13  individualized and coordinated set of services including health 
  3.14  services, social services, and nutritional services that are 
  3.15  directed at maintaining or improving the participants' 
  3.16  capabilities for self-care.  Adult day care does, adult day 
  3.17  services, and family adult day services do not include programs 
  3.18  where adults gather or congregate primarily for purposes of 
  3.19  socialization, education, supervision, caregiver respite, 
  3.20  religious expression, exercise, or nutritious meals. 
  3.21     Sec. 3.  Minnesota Statutes 2002, section 245A.02, 
  3.22  subdivision 5a, is amended to read: 
  3.23     Subd. 5a.  [CONTROLLING INDIVIDUAL.] "Controlling 
  3.24  individual" means a public body, governmental agency, business 
  3.25  entity, officer, program administrator, or director owner, or 
  3.26  managerial official whose responsibilities include the direction 
  3.27  of the management or policies of a program.  Controlling 
  3.28  individual also means an individual who, directly or indirectly, 
  3.29  beneficially owns an interest in a corporation, partnership, or 
  3.30  other business association that is a controlling individual For 
  3.31  purposes of this subdivision, owner means an individual who has 
  3.32  direct or indirect ownership interest in a corporation, 
  3.33  partnership, or other business association issued a license 
  3.34  under this chapter.  For purposes of this subdivision, 
  3.35  managerial official means those individuals who have the 
  3.36  decision-making authority related to the operation of the 
  4.1   program, and the responsibility for the ongoing management of or 
  4.2   direction of the policies, services, or employees of the 
  4.3   program.  Controlling individual does not include: 
  4.4      (1) a bank, savings bank, trust company, savings 
  4.5   association, credit union, industrial loan and thrift company, 
  4.6   investment banking firm, or insurance company unless the entity 
  4.7   operates a program directly or through a subsidiary; 
  4.8      (2) an individual who is a state or federal official, or 
  4.9   state or federal employee, or a member or employee of the 
  4.10  governing body of a political subdivision of the state or 
  4.11  federal government that operates one or more programs, unless 
  4.12  the individual is also an officer, owner, or director managerial 
  4.13  official of the program, receives remuneration from the program, 
  4.14  or owns any of the beneficial interests not excluded in this 
  4.15  subdivision; 
  4.16     (3) an individual who owns less than five percent of the 
  4.17  outstanding common shares of a corporation: 
  4.18     (i) whose securities are exempt under section 80A.15, 
  4.19  subdivision 1, clause (f); or 
  4.20     (ii) whose transactions are exempt under section 80A.15, 
  4.21  subdivision 2, clause (b); or 
  4.22     (4) an individual who is a member of an organization exempt 
  4.23  from taxation under section 290.05, unless the individual is 
  4.24  also an officer, owner, or director managerial official of the 
  4.25  program or owns any of the beneficial interests not excluded in 
  4.26  this subdivision.  This clause does not exclude from the 
  4.27  definition of controlling individual an organization that is 
  4.28  exempt from taxation. 
  4.29     Sec. 4.  Minnesota Statutes 2002, section 245A.02, is 
  4.30  amended by adding a subdivision to read: 
  4.31     Subd. 6c.  [FOSTER CARE FOR ADULTS.] "Foster care for 
  4.32  adults" means a program operating 24 hours a day that provides 
  4.33  functionally impaired adults with food, lodging, protection, 
  4.34  supervision, and household services in a residence, in addition 
  4.35  to services according to the individual service plans under 
  4.36  Minnesota Rules, part 9555.5105, subpart 18. 
  5.1      Sec. 5.  Minnesota Statutes 2002, section 245A.02, 
  5.2   subdivision 7, is amended to read: 
  5.3      Subd. 7.  [FUNCTIONAL IMPAIRMENT.] For the purposes of 
  5.4   adult day care, adult day services, family adult day services, 
  5.5   or adult foster care, "functional impairment" means: 
  5.6      (1) a condition that is characterized by substantial 
  5.7   difficulty in carrying out one or more of the essential major 
  5.8   activities of daily living, such as caring for oneself, 
  5.9   performing manual tasks, walking, seeing, hearing, speaking, 
  5.10  breathing, learning, working; or 
  5.11     (2) a disorder of thought or mood that significantly 
  5.12  impairs judgment, behavior, capacity to recognize reality, or 
  5.13  ability to cope with the ordinary demands of life and that 
  5.14  requires support to maintain independence in the community. 
  5.15     Sec. 6.  Minnesota Statutes 2002, section 245A.02, 
  5.16  subdivision 10, is amended to read: 
  5.17     Subd. 10.  [NONRESIDENTIAL PROGRAM.] "Nonresidential 
  5.18  program" means care, supervision, rehabilitation, training or 
  5.19  habilitation of a person provided outside the person's own home 
  5.20  and provided for fewer than 24 hours a day, including adult day 
  5.21  care programs; a nursing home that receives public funds to 
  5.22  provide services for five or more persons whose primary 
  5.23  diagnosis is mental retardation or a related condition or mental 
  5.24  illness and who do not have a significant physical or medical 
  5.25  problem that necessitates nursing home care; a nursing home or 
  5.26  hospital that was licensed by the commissioner on July 1, 1987, 
  5.27  to provide a program for persons with a physical handicap that 
  5.28  is not the result of the normal aging process and considered to 
  5.29  be a chronic condition; and chemical dependency or chemical 
  5.30  abuse programs that are located in a nursing home or hospital 
  5.31  and receive public funds for providing chemical abuse or 
  5.32  chemical dependency treatment services under chapter 254B.  
  5.33  Nonresidential programs include home and community-based 
  5.34  services and semi-independent living services for persons with 
  5.35  mental retardation or a related condition that are provided in 
  5.36  or outside of a person's own home. 
  6.1      Sec. 7.  Minnesota Statutes 2002, section 245A.02, 
  6.2   subdivision 14, is amended to read: 
  6.3      Subd. 14.  [RESIDENTIAL PROGRAM.] "Residential program" 
  6.4   means a program that provides 24-hour-a-day care, supervision, 
  6.5   food, lodging, rehabilitation, training, education, 
  6.6   habilitation, or treatment outside a person's own home, 
  6.7   including a nursing home or hospital that receives public funds, 
  6.8   administered by the commissioner, to provide services for five 
  6.9   or more persons whose primary diagnosis is mental retardation or 
  6.10  a related condition or mental illness and who do not have a 
  6.11  significant physical or medical problem that necessitates 
  6.12  nursing home care; a program in an intermediate care facility 
  6.13  for four or more persons with mental retardation or a related 
  6.14  condition; a nursing home or hospital that was licensed by the 
  6.15  commissioner on July 1, 1987, to provide a program for persons 
  6.16  with a physical handicap that is not the result of the normal 
  6.17  aging process and considered to be a chronic condition; and 
  6.18  chemical dependency or chemical abuse programs that are located 
  6.19  in a hospital or nursing home and receive public funds for 
  6.20  providing chemical abuse or chemical dependency treatment 
  6.21  services under chapter 254B.  Residential programs include home 
  6.22  and community-based services for persons with mental retardation 
  6.23  or a related condition that are provided in or outside of a 
  6.24  person's own home. 
  6.25     Sec. 8.  Minnesota Statutes 2003 Supplement, section 
  6.26  245A.03, subdivision 2, is amended to read: 
  6.27     Subd. 2.  [EXCLUSION FROM LICENSURE.] (a) This chapter does 
  6.28  not apply to: 
  6.29     (1) residential or nonresidential programs that are 
  6.30  provided to a person by an individual who is related unless the 
  6.31  residential program is a child foster care placement made by a 
  6.32  local social services agency or a licensed child-placing agency, 
  6.33  except as provided in subdivision 2a; 
  6.34     (2) nonresidential programs that are provided by an 
  6.35  unrelated individual to persons from a single related family; 
  6.36     (3) residential or nonresidential programs that are 
  7.1   provided to adults who do not abuse chemicals or who do not have 
  7.2   a chemical dependency, a mental illness, mental retardation or a 
  7.3   related condition, a functional impairment, or a physical 
  7.4   handicap; 
  7.5      (4) sheltered workshops or work activity programs that are 
  7.6   certified by the commissioner of economic security; 
  7.7      (5) programs operated by a public school for children 
  7.8   enrolled in kindergarten to the 12th grade and prekindergarten 
  7.9   special education in a school as defined in section 120A.22, 
  7.10  subdivision 4, and programs serving children in combined special 
  7.11  education and regular prekindergarten programs that are operated 
  7.12  or assisted by the commissioner of education 33 months or older; 
  7.13     (6) nonresidential programs primarily for children that 
  7.14  provide care or supervision, without charge for ten or fewer 
  7.15  days a year, and for periods of less than three hours a day 
  7.16  while the child's parent or legal guardian is in the same 
  7.17  building as the nonresidential program or present within another 
  7.18  building that is directly contiguous to the building in which 
  7.19  the nonresidential program is located; 
  7.20     (7) nursing homes or hospitals licensed by the commissioner 
  7.21  of health except as specified under section 245A.02; 
  7.22     (8) board and lodge facilities licensed by the commissioner 
  7.23  of health that provide services for five or more persons whose 
  7.24  primary diagnosis is mental illness who have refused an 
  7.25  appropriate residential program offered by a county agency that 
  7.26  do not provide intensive residential treatment; 
  7.27     (9) homes providing programs for persons placed there by a 
  7.28  licensed agency for legal adoption, unless the adoption is not 
  7.29  completed within two years; 
  7.30     (10) programs licensed by the commissioner of corrections; 
  7.31     (11) recreation programs for children or adults that 
  7.32  operate for fewer than 40 calendar days in a calendar year or 
  7.33  programs operated are operated or approved by a park and 
  7.34  recreation board of a city of the first class whose primary 
  7.35  purpose is to provide social and recreational activities to 
  7.36  school age children, provided the program is approved by the 
  8.1   park and recreation board; 
  8.2      (12) programs operated by a school as defined in section 
  8.3   120A.22, subdivision 4, whose primary purpose is to provide 
  8.4   child care to school-age children, provided the program is 
  8.5   approved by the district's school board; 
  8.6      (13) Head Start nonresidential programs which operate for 
  8.7   less than 31 days in each calendar year; 
  8.8      (14) noncertified boarding care homes unless they provide 
  8.9   services for five or more persons whose primary diagnosis is 
  8.10  mental illness or mental retardation; 
  8.11     (15) nonresidential programs for nonhandicapped children 
  8.12  provided for a cumulative total of less than 30 days in any 
  8.13  12-month period; 
  8.14     (16) residential programs for persons with mental illness, 
  8.15  that are located in hospitals, until the commissioner adopts 
  8.16  appropriate rules; 
  8.17     (17) the religious instruction of school-age children; 
  8.18  Sabbath or Sunday schools; or the congregate care of children by 
  8.19  a church, congregation, or religious society during the period 
  8.20  used by the church, congregation, or religious society for its 
  8.21  regular worship; 
  8.22     (18) camps licensed by the commissioner of health under 
  8.23  Minnesota Rules, chapter 4630; 
  8.24     (19) mental health outpatient services for adults with 
  8.25  mental illness or children with emotional disturbance; 
  8.26     (20) residential programs serving school-age children whose 
  8.27  sole purpose is cultural or educational exchange, until the 
  8.28  commissioner adopts appropriate rules; 
  8.29     (21) unrelated individuals who provide out-of-home respite 
  8.30  care services to persons with mental retardation or related 
  8.31  conditions from a single related family for no more than 90 days 
  8.32  in a 12-month period and the respite care services are for the 
  8.33  temporary relief of the person's family or legal representative; 
  8.34     (22) respite care services provided as a home and 
  8.35  community-based service to a person with mental retardation or a 
  8.36  related condition, in the person's primary residence; 
  9.1      (23) community support services programs as defined in 
  9.2   section 245.462, subdivision 6, and family community support 
  9.3   services as defined in section 245.4871, subdivision 17; 
  9.4      (24) the placement of a child by a birth parent or legal 
  9.5   guardian in a preadoptive home for purposes of adoption as 
  9.6   authorized by section 259.47; 
  9.7      (25) settings registered under chapter 144D which provide 
  9.8   home care services licensed by the commissioner of health to 
  9.9   fewer than seven adults; or 
  9.10     (26) consumer-directed community support service funded 
  9.11  under the Medicaid waiver for persons with mental retardation 
  9.12  and related conditions when the individual who provided the 
  9.13  service is:  
  9.14     (i) the same individual who is the direct payee of these 
  9.15  specific waiver funds or paid by a fiscal agent, fiscal 
  9.16  intermediary, or employer of record; and 
  9.17     (ii) not otherwise under the control of a residential or 
  9.18  nonresidential program that is required to be licensed under 
  9.19  this chapter when providing the service. 
  9.20     (b) For purposes of paragraph (a), clause (6), a building 
  9.21  is directly contiguous to a building in which a nonresidential 
  9.22  program is located if it shares a common wall with the building 
  9.23  in which the nonresidential program is located or is attached to 
  9.24  that building by skyway, tunnel, atrium, or common roof. 
  9.25     (c) Nothing in this chapter shall be construed to require 
  9.26  licensure for any services provided and funded according to an 
  9.27  approved federal waiver plan where licensure is specifically 
  9.28  identified as not being a condition for the services and funding.
  9.29     Sec. 9.  Minnesota Statutes 2002, section 245A.03, 
  9.30  subdivision 3, is amended to read: 
  9.31     Subd. 3.  [UNLICENSED PROGRAMS.] (a) It is a misdemeanor 
  9.32  for an individual, corporation, partnership, voluntary 
  9.33  association, other organization, or a controlling individual to 
  9.34  provide a residential or nonresidential program without a 
  9.35  license and in willful disregard of this chapter unless the 
  9.36  program is excluded from licensure under subdivision 2. 
 10.1      (b) If, after receiving notice that a license is required, 
 10.2   the individual, corporation, partnership, voluntary association, 
 10.3   other organization, or controlling individual has failed to 
 10.4   apply for a license, The commissioner may ask the appropriate 
 10.5   county attorney or the attorney general to begin proceedings to 
 10.6   secure a court order against the continued operation of the 
 10.7   program, if an individual, corporation, partnership, voluntary 
 10.8   association, other organization, or controlling individual has:  
 10.9      (1) failed to apply for a license after receiving notice 
 10.10  that a license is required; 
 10.11     (2) continued to operate without a license after the 
 10.12  license has been revoked or suspended under section 245A.07, and 
 10.13  the commissioner has issued a final order affirming the 
 10.14  revocation or suspension, or the license holder did not timely 
 10.15  appeal the sanction; or 
 10.16     (3) continued to operate without a license after the 
 10.17  license has been temporarily suspended under section 245A.07.  
 10.18  The county attorney and the attorney general have a duty to 
 10.19  cooperate with the commissioner.  
 10.20     Sec. 10.  Minnesota Statutes 2003 Supplement, section 
 10.21  245A.04, subdivision 1, is amended to read: 
 10.22     Subdivision 1.  [APPLICATION FOR LICENSURE.] (a) An 
 10.23  individual, corporation, partnership, voluntary association, 
 10.24  other organization or controlling individual that is subject to 
 10.25  licensure under section 245A.03 must apply for a license.  The 
 10.26  application must be made on the forms and in the manner 
 10.27  prescribed by the commissioner.  The commissioner shall provide 
 10.28  the applicant with instruction in completing the application and 
 10.29  provide information about the rules and requirements of other 
 10.30  state agencies that affect the applicant.  An applicant seeking 
 10.31  licensure in Minnesota with headquarters outside of Minnesota 
 10.32  must have a program office located within the state.  
 10.33     The commissioner shall act on the application within 90 
 10.34  working days after a complete application and any required 
 10.35  reports have been received from other state agencies or 
 10.36  departments, counties, municipalities, or other political 
 11.1   subdivisions.  The commissioner shall not consider an 
 11.2   application to be complete until the commissioner receives all 
 11.3   of the information required under section 245C.05. 
 11.4      (b) An application for licensure must specify one or more 
 11.5   controlling individuals as an agent who is responsible for 
 11.6   dealing with the commissioner of human services on all matters 
 11.7   provided for in this chapter and on whom service of all notices 
 11.8   and orders must be made.  The agent must be authorized to accept 
 11.9   service on behalf of all of the controlling individuals of the 
 11.10  program.  Service on the agent is service on all of the 
 11.11  controlling individuals of the program.  It is not a defense to 
 11.12  any action arising under this chapter that service was not made 
 11.13  on each controlling individual of the program.  The designation 
 11.14  of one or more controlling individuals as agents under this 
 11.15  paragraph does not affect the legal responsibility of any other 
 11.16  controlling individual under this chapter. 
 11.17     (c) An applicant or license holder must have a policy that 
 11.18  prohibits license holders, employees, subcontractors, and 
 11.19  volunteers, when directly responsible for persons served by the 
 11.20  program, from abusing prescription medication or being in any 
 11.21  manner under the influence of a chemical that impairs the 
 11.22  individual's ability to provide services or care.  The license 
 11.23  holder must train employees, subcontractors, and volunteers 
 11.24  about the program's drug and alcohol policy. 
 11.25     (d) An applicant and license holder must have a program 
 11.26  grievance procedure that permits persons served by the program 
 11.27  and their authorized representatives to bring a grievance to the 
 11.28  highest level of authority in the program. 
 11.29     Sec. 11.  Minnesota Statutes 2002, section 245A.04, 
 11.30  subdivision 5, is amended to read: 
 11.31     Subd. 5.  [COMMISSIONER'S RIGHT OF ACCESS.] When the 
 11.32  commissioner is exercising the powers conferred by this 
 11.33  chapter and section 245.69, the commissioner must be given 
 11.34  access to the physical plant and grounds where the program is 
 11.35  provided, documents, persons served by the program, and staff 
 11.36  whenever the program is in operation and the information is 
 12.1   relevant to inspections or investigations conducted by the 
 12.2   commissioner.  The commissioner must be given access without 
 12.3   prior notice and as often as the commissioner considers 
 12.4   necessary if the commissioner is conducting an investigation of 
 12.5   allegations of maltreatment or other violation of applicable 
 12.6   laws or rules.  In conducting inspections, the commissioner may 
 12.7   request and shall receive assistance from other state, county, 
 12.8   and municipal governmental agencies and departments.  The 
 12.9   applicant or license holder shall allow the commissioner to 
 12.10  photocopy, photograph, and make audio and video tape recordings 
 12.11  during the inspection of the program at the commissioner's 
 12.12  expense.  The commissioner shall obtain a court order or the 
 12.13  consent of the subject of the records or the parents or legal 
 12.14  guardian of the subject before photocopying hospital medical 
 12.15  records.  
 12.16     Persons served by the program have the right to refuse to 
 12.17  consent to be interviewed, photographed, or audio or videotaped. 
 12.18  Failure or refusal of an applicant or license holder to fully 
 12.19  comply with this subdivision is reasonable cause for the 
 12.20  commissioner to deny the application or immediately suspend or 
 12.21  revoke the license. 
 12.22     Sec. 12.  Minnesota Statutes 2002, section 245A.04, 
 12.23  subdivision 6, is amended to read: 
 12.24     Subd. 6.  [COMMISSIONER'S EVALUATION.] Before issuing, 
 12.25  denying, suspending, revoking, or making conditional a license, 
 12.26  the commissioner shall evaluate information gathered under this 
 12.27  section.  The commissioner's evaluation shall consider facts, 
 12.28  conditions, or circumstances concerning the program's operation, 
 12.29  the well-being of persons served by the program, available 
 12.30  consumer evaluations of the program, and information about the 
 12.31  qualifications of the personnel employed by the applicant or 
 12.32  license holder. 
 12.33     The commissioner shall evaluate the results of the study 
 12.34  required in subdivision 3 and determine whether a risk of harm 
 12.35  to the persons served by the program exists.  In conducting this 
 12.36  evaluation, the commissioner shall apply the disqualification 
 13.1   standards set forth in rules adopted under this chapter 245C.  
 13.2      Sec. 13.  Minnesota Statutes 2002, section 245A.04, 
 13.3   subdivision 7, is amended to read: 
 13.4      Subd. 7.  [ISSUANCE OF A LICENSE; EXTENSION OF A LICENSE.] 
 13.5   (a) If the commissioner determines that the program complies 
 13.6   with all applicable rules and laws, the commissioner shall issue 
 13.7   a license.  At minimum, the license shall state:  
 13.8      (1) the name of the license holder; 
 13.9      (2) the address of the program; 
 13.10     (3) the effective date and expiration date of the license; 
 13.11     (4) the type of license; 
 13.12     (5) the maximum number and ages of persons that may receive 
 13.13  services from the program; and 
 13.14     (6) any special conditions of licensure. 
 13.15     (b) The commissioner may issue an initial license for a 
 13.16  period not to exceed two years if:  
 13.17     (1) the commissioner is unable to conduct the evaluation or 
 13.18  observation required by subdivision 4, paragraph (a), clauses (3)
 13.19  and (4), because the program is not yet operational; 
 13.20     (2) certain records and documents are not available because 
 13.21  persons are not yet receiving services from the program; and 
 13.22     (3) the applicant complies with applicable laws and rules 
 13.23  in all other respects.  
 13.24     (c) A decision by the commissioner to issue a license does 
 13.25  not guarantee that any person or persons will be placed or cared 
 13.26  for in the licensed program.  A license shall not be 
 13.27  transferable to another individual, corporation, partnership, 
 13.28  voluntary association, other organization, or controlling or to 
 13.29  another location. 
 13.30     (d) A license holder must notify the commissioner and 
 13.31  obtain the commissioner's approval before making any changes 
 13.32  that would alter the license information listed under paragraph 
 13.33  (a). 
 13.34     (e) The commissioner shall not issue a license if the 
 13.35  applicant, license holder, or controlling individual has:  
 13.36     (1) been disqualified and the disqualification was not set 
 14.1   aside; 
 14.2      (2) has been denied a license within the past two years; or 
 14.3      (3) had a license revoked within the past five years. 
 14.4      For purposes of reimbursement for meals only, under the 
 14.5   Child and Adult Care Food Program, Code of Federal Regulations, 
 14.6   title 7, subtitle B, chapter II, subchapter A, part 226, 
 14.7   relocation within the same county by a licensed family day care 
 14.8   provider, shall be considered an extension of the license for a 
 14.9   period of no more than 30 calendar days or until the new license 
 14.10  is issued, whichever occurs first, provided the county agency 
 14.11  has determined the family day care provider meets licensure 
 14.12  requirements at the new location. 
 14.13     Unless otherwise specified by statute, all licenses expire 
 14.14  at 12:01 a.m. on the day after the expiration date stated on the 
 14.15  license.  A license holder must apply for and be granted a new 
 14.16  license to operate the program or the program must not be 
 14.17  operated after the expiration date.  
 14.18     Sec. 14.  Minnesota Statutes 2002, section 245A.04, is 
 14.19  amended by adding a subdivision to read: 
 14.20     Subd. 13.  [RESIDENTIAL PROGRAMS HANDLING RESIDENT FUNDS 
 14.21  AND PROPERTY; ADDITIONAL REQUIREMENTS.] (a) A license holder 
 14.22  must ensure that residents retain the use and availability of 
 14.23  personal funds or property unless restrictions are justified in 
 14.24  the resident's individual plan. 
 14.25     (b) The license holder must ensure separation of resident 
 14.26  funds from funds of the license holder, the residential program, 
 14.27  or program staff. 
 14.28     (c) Whenever the license holder assists a resident with the 
 14.29  safekeeping of funds or other property, the license holder must: 
 14.30     (1) immediately document receipt and disbursement of the 
 14.31  resident's funds or other property at the time of receipt or 
 14.32  disbursement, including the signature of the resident, 
 14.33  conservator, or payee; 
 14.34     (2) provide a statement, at least quarterly, itemizing 
 14.35  receipts and disbursements of resident funds or other property; 
 14.36  and 
 15.1      (3) return to the resident upon the resident's request, 
 15.2   funds and property in the license holder's possession subject to 
 15.3   restrictions in the resident's treatment plan, as soon as 
 15.4   possible, but no later than three working days after the date of 
 15.5   request. 
 15.6      (d) License holders and program staff must not: 
 15.7      (1) borrow money from a resident; 
 15.8      (2) purchase personal items from a resident; 
 15.9      (3) sell merchandise or personal services to a resident; 
 15.10     (4) require a resident to purchase items for which the 
 15.11  license holder is eligible for reimbursement; or 
 15.12     (5) use resident funds to purchase items for which the 
 15.13  facility is already receiving public or private payments. 
 15.14     Sec. 15.  Minnesota Statutes 2002, section 245A.05, is 
 15.15  amended to read: 
 15.16     245A.05 [DENIAL OF APPLICATION.] 
 15.17     The commissioner may deny a license if an applicant fails 
 15.18  to comply with applicable laws or rules, or knowingly withholds 
 15.19  relevant information from or gives false or misleading 
 15.20  information to the commissioner in connection with an 
 15.21  application for a license or during an investigation.  An 
 15.22  applicant whose application has been denied by the commissioner 
 15.23  must be given notice of the denial.  Notice must be given by 
 15.24  certified mail or personal service.  The notice must state the 
 15.25  reasons the application was denied and must inform the applicant 
 15.26  of the right to a contested case hearing under chapter 14 and 
 15.27  Minnesota Rules, parts 1400.8510 1400.8505 to 1400.8612 and 
 15.28  successor rules.  The applicant may appeal the denial by 
 15.29  notifying the commissioner in writing by certified mail or 
 15.30  personal service within 20 calendar days after receiving notice 
 15.31  that the application was denied.  Section 245A.08 applies to 
 15.32  hearings held to appeal the commissioner's denial of an 
 15.33  application. 
 15.34     Sec. 16.  Minnesota Statutes 2002, section 245A.06, 
 15.35  subdivision 2, is amended to read: 
 15.36     Subd. 2.  [RECONSIDERATION OF CORRECTION ORDERS.] If the 
 16.1   applicant or license holder believes that the contents of the 
 16.2   commissioner's correction order are in error, the applicant or 
 16.3   license holder may ask the Department of Human Services to 
 16.4   reconsider the parts of the correction order that are alleged to 
 16.5   be in error.  The request for reconsideration must be made in 
 16.6   writing and received by must be postmarked and sent to the 
 16.7   commissioner within 20 calendar days after receipt of the 
 16.8   correction order by the applicant or license holder, and: 
 16.9      (1) specify the parts of the correction order that are 
 16.10  alleged to be in error; 
 16.11     (2) explain why they are in error; and 
 16.12     (3) include documentation to support the allegation of 
 16.13  error. 
 16.14     A request for reconsideration does not stay any provisions 
 16.15  or requirements of the correction order.  The commissioner's 
 16.16  disposition of a request for reconsideration is final and not 
 16.17  subject to appeal under chapter 14. 
 16.18     Sec. 17.  Minnesota Statutes 2002, section 245A.06, 
 16.19  subdivision 4, is amended to read: 
 16.20     Subd. 4.  [NOTICE OF CONDITIONAL LICENSE; RECONSIDERATION 
 16.21  OF CONDITIONAL LICENSE.] If a license is made conditional, the 
 16.22  license holder must be notified of the order by certified 
 16.23  mail or personal service.  If mailed, the notice must be mailed 
 16.24  to the address shown on the application or the last known 
 16.25  address of the license holder.  The notice must state the 
 16.26  reasons the conditional license was ordered and must inform the 
 16.27  license holder of the right to request reconsideration of the 
 16.28  conditional license by the commissioner.  The license holder may 
 16.29  request reconsideration of the order of conditional license by 
 16.30  notifying the commissioner by certified mail or personal 
 16.31  service.  The request must be made in writing and.  If sent by 
 16.32  certified mail, the request must be received by postmarked and 
 16.33  sent to the commissioner within ten calendar days after the 
 16.34  license holder received the order.  If a request is made by 
 16.35  personal service, it must be received by the commissioner within 
 16.36  ten calendar days after the license holder received the order.  
 17.1   The license holder may submit with the request for 
 17.2   reconsideration written argument or evidence in support of the 
 17.3   request for reconsideration.  A timely request for 
 17.4   reconsideration shall stay imposition of the terms of the 
 17.5   conditional license until the commissioner issues a decision on 
 17.6   the request for reconsideration.  If the commissioner issues a 
 17.7   dual order of conditional license under this section and an 
 17.8   order to pay a fine under section 245A.07, subdivision 3, the 
 17.9   license holder has a right to a contested case hearing under 
 17.10  chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612.  
 17.11  The scope of the contested case hearing shall include the fine 
 17.12  and the conditional license.  In this case, a reconsideration of 
 17.13  the conditional license will not be conducted under this section.
 17.14     The commissioner's disposition of a request for 
 17.15  reconsideration is final and not subject to appeal under chapter 
 17.16  14. 
 17.17     Sec. 18.  Minnesota Statutes 2002, section 245A.07, 
 17.18  subdivision 2, is amended to read: 
 17.19     Subd. 2.  [TEMPORARY IMMEDIATE SUSPENSION.] If the license 
 17.20  holder's actions or failure to comply with applicable law or 
 17.21  rule poses, or the actions of other individuals or conditions in 
 17.22  the program pose an imminent risk of harm to the health, safety, 
 17.23  or rights of persons served by the program, the commissioner 
 17.24  shall act immediately to temporarily suspend the license.  No 
 17.25  state funds shall be made available or be expended by any agency 
 17.26  or department of state, county, or municipal government for use 
 17.27  by a license holder regulated under this chapter while a license 
 17.28  is under immediate suspension.  A notice stating the reasons for 
 17.29  the immediate suspension and informing the license holder of the 
 17.30  right to an expedited hearing under chapter 14 and Minnesota 
 17.31  Rules, parts 1400.8510 1400.8505 to 1400.8612 and successor 
 17.32  rules, must be delivered by personal service to the address 
 17.33  shown on the application or the last known address of the 
 17.34  license holder.  The license holder may appeal an order 
 17.35  immediately suspending a license.  The appeal of an order 
 17.36  immediately suspending a license must be made in writing by 
 18.1   certified mail and or personal service.  If mailed, the appeal 
 18.2   must be postmarked and sent to the commissioner within five 
 18.3   calendar days after the license holder receives notice that the 
 18.4   license has been immediately suspended.  If a request is made by 
 18.5   personal service, it must be received by the commissioner within 
 18.6   five calendar days after the license holder received the order.  
 18.7   A license holder and any controlling individual shall 
 18.8   discontinue operation of the program upon receipt of the 
 18.9   commissioner's order to immediately suspend the license. 
 18.10     Sec. 19.  Minnesota Statutes 2002, section 245A.07, 
 18.11  subdivision 2a, is amended to read: 
 18.12     Subd. 2a.  [IMMEDIATE SUSPENSION EXPEDITED HEARING.] (a) 
 18.13  Within five working days of receipt of the license holder's 
 18.14  timely appeal, the commissioner shall request assignment of an 
 18.15  administrative law judge.  The request must include a proposed 
 18.16  date, time, and place of a hearing.  A hearing must be conducted 
 18.17  by an administrative law judge within 30 calendar days of the 
 18.18  request for assignment, unless an extension is requested by 
 18.19  either party and granted by the administrative law judge for 
 18.20  good cause.  The commissioner shall issue a notice of hearing by 
 18.21  certified mail or personal service at least ten working days 
 18.22  before the hearing.  The scope of the hearing shall be limited 
 18.23  solely to the issue of whether the temporary immediate 
 18.24  suspension should remain in effect pending the commissioner's 
 18.25  final order under section 245A.08, regarding a licensing 
 18.26  sanction issued under subdivision 3 following the immediate 
 18.27  suspension.  The burden of proof in expedited hearings under 
 18.28  this subdivision shall be limited to the commissioner's 
 18.29  demonstration that reasonable cause exists to believe that the 
 18.30  license holder's actions or failure to comply with applicable 
 18.31  law or rule poses an imminent risk of harm to the health, 
 18.32  safety, or rights of persons served by the program.  
 18.33     (b) The administrative law judge shall issue findings of 
 18.34  fact, conclusions, and a recommendation within ten working days 
 18.35  from the date of hearing.  The parties shall have ten calendar 
 18.36  days to submit exceptions to the administrative law judge's 
 19.1   report.  The record shall close at the end of the ten-day period 
 19.2   for submission of exceptions.  The commissioner's final order 
 19.3   shall be issued within ten working days from receipt of the 
 19.4   recommendation of the administrative law judge the close of the 
 19.5   record.  Within 90 calendar days after a final order affirming 
 19.6   an immediate suspension, the commissioner shall make a 
 19.7   determination regarding whether a final licensing sanction shall 
 19.8   be issued under subdivision 3.  The license holder shall 
 19.9   continue to be prohibited from operation of the program during 
 19.10  this 90-day period.  
 19.11     (c) When the final order under paragraph (b) affirms an 
 19.12  immediate suspension, and a final licensing sanction is issued 
 19.13  under subdivision 3 and the license holder appeals that 
 19.14  sanction, the license holder continues to be prohibited from 
 19.15  operation of the program pending a final commissioner's order 
 19.16  under section 245A.08, subdivision 5, regarding the final 
 19.17  licensing sanction. 
 19.18     Sec. 20.  Minnesota Statutes 2002, section 245A.07, 
 19.19  subdivision 3, is amended to read: 
 19.20     Subd. 3.  [LICENSE SUSPENSION, REVOCATION, OR FINE.] The 
 19.21  commissioner may suspend or revoke a license, or impose a fine 
 19.22  if a license holder fails to comply fully with applicable laws 
 19.23  or rules, has a disqualification which has not been set aside 
 19.24  under section 245C.22, or knowingly withholds relevant 
 19.25  information from or gives false or misleading information to the 
 19.26  commissioner in connection with an application for a license, in 
 19.27  connection with the background study status of an individual, or 
 19.28  during an investigation.  A license holder who has had a license 
 19.29  suspended, revoked, or has been ordered to pay a fine must be 
 19.30  given notice of the action by certified mail or personal 
 19.31  service.  If mailed, the notice must be mailed to the address 
 19.32  shown on the application or the last known address of the 
 19.33  license holder.  The notice must state the reasons the license 
 19.34  was suspended, revoked, or a fine was ordered. 
 19.35     (a) If the license was suspended or revoked, the notice 
 19.36  must inform the license holder of the right to a contested case 
 20.1   hearing under chapter 14 and Minnesota Rules, parts 1400.8510 
 20.2   1400.8505 to 1400.8612 and successor rules.  The license holder 
 20.3   may appeal an order suspending or revoking a license.  The 
 20.4   appeal of an order suspending or revoking a license must be made 
 20.5   in writing by certified mail and or personal service.  If 
 20.6   mailed, the appeal must be postmarked and sent to the 
 20.7   commissioner within ten calendar days after the license holder 
 20.8   receives notice that the license has been suspended or revoked.  
 20.9   If a request is made by personal service, it must be received by 
 20.10  the commissioner within ten calendar days after the license 
 20.11  holder received the order.  Except as provided in subdivision 
 20.12  2a, paragraph (c), a timely appeal of an order suspending or 
 20.13  revoking a license shall stay the suspension or revocation until 
 20.14  the commissioner issues a final order.  
 20.15     (b)(1) If the license holder was ordered to pay a fine, the 
 20.16  notice must inform the license holder of the responsibility for 
 20.17  payment of fines and the right to a contested case hearing under 
 20.18  chapter 14 and Minnesota Rules, parts 1400.8510 1400.8505 to 
 20.19  1400.8612 and successor rules.  The appeal of an order to pay a 
 20.20  fine must be made in writing by certified mail and or personal 
 20.21  service.  If mailed, the appeal must be postmarked and sent to 
 20.22  the commissioner within ten calendar days after the license 
 20.23  holder receives notice that the fine has been ordered.  If a 
 20.24  request is made by personal service, it must be received by the 
 20.25  commissioner within ten calendar days after the license holder 
 20.26  received the order.  
 20.27     (2) The license holder shall pay the fines assessed on or 
 20.28  before the payment date specified.  If the license holder fails 
 20.29  to fully comply with the order, the commissioner may issue a 
 20.30  second fine or suspend the license until the license holder 
 20.31  complies.  If the license holder receives state funds, the 
 20.32  state, county, or municipal agencies or departments responsible 
 20.33  for administering the funds shall withhold payments and recover 
 20.34  any payments made while the license is suspended for failure to 
 20.35  pay a fine.  A timely appeal shall stay payment of the fine 
 20.36  until the commissioner issues a final order.  
 21.1      (3) A license holder shall promptly notify the commissioner 
 21.2   of human services, in writing, when a violation specified in the 
 21.3   order to forfeit a fine is corrected.  If upon reinspection the 
 21.4   commissioner determines that a violation has not been corrected 
 21.5   as indicated by the order to forfeit a fine, the commissioner 
 21.6   may issue a second fine.  The commissioner shall notify the 
 21.7   license holder by certified mail or personal service that a 
 21.8   second fine has been assessed.  The license holder may appeal 
 21.9   the second fine as provided under this subdivision. 
 21.10     (4) Fines shall be assessed as follows:  the license holder 
 21.11  shall forfeit $1,000 for each determination of maltreatment of a 
 21.12  child under section 626.556 or the maltreatment of a vulnerable 
 21.13  adult under section 626.557; the license holder shall forfeit 
 21.14  $200 for each occurrence of a violation of law or rule governing 
 21.15  matters of health, safety, or supervision, including but not 
 21.16  limited to the provision of adequate staff-to-child or adult 
 21.17  ratios, and failure to submit a background study; and the 
 21.18  license holder shall forfeit $100 for each occurrence of a 
 21.19  violation of law or rule other than those subject to a $1,000 or 
 21.20  $200 fine above.  For purposes of this section, "occurrence" 
 21.21  means each violation identified in the commissioner's fine order.
 21.22     (5) When a fine has been assessed, the license holder may 
 21.23  not avoid payment by closing, selling, or otherwise transferring 
 21.24  the licensed program to a third party.  In such an event, the 
 21.25  license holder will be personally liable for payment.  In the 
 21.26  case of a corporation, each controlling individual is personally 
 21.27  and jointly liable for payment.  
 21.28     Sec. 21.  Minnesota Statutes 2003 Supplement, section 
 21.29  245A.08, subdivision 1, is amended to read: 
 21.30     Subdivision 1.  [RECEIPT OF APPEAL; CONDUCT OF HEARING.] 
 21.31  Upon receiving a timely appeal or petition pursuant to section 
 21.32  245A.05, 245A.07, subdivision 3, or 245C.28, the commissioner 
 21.33  shall issue a notice of and order for hearing to the appellant 
 21.34  under chapter 14 and Minnesota Rules, parts 1400.8510 1400.8505 
 21.35  to 1400.8612 and successor rules. 
 21.36     Sec. 22.  Minnesota Statutes 2003 Supplement, section 
 22.1   245A.08, subdivision 2a, is amended to read: 
 22.2      Subd. 2a.  [CONSOLIDATED CONTESTED CASE HEARINGS FOR 
 22.3   SANCTIONS BASED ON MALTREATMENT DETERMINATIONS AND 
 22.4   DISQUALIFICATIONS.] (a) When a denial of a license under section 
 22.5   245A.05 or a licensing sanction under section 245A.07, 
 22.6   subdivision 3, is based on a disqualification for which 
 22.7   reconsideration was requested and which was not set aside or was 
 22.8   not rescinded under sections 245C.21 to 245C.27 section 245C.22, 
 22.9   the scope of the contested case hearing shall include the 
 22.10  disqualification and the licensing sanction or denial of a 
 22.11  license.  When the licensing sanction or denial of a license is 
 22.12  based on a determination of maltreatment under section 626.556 
 22.13  or 626.557, or a disqualification for serious or recurring 
 22.14  maltreatment which was not set aside or was not rescinded, the 
 22.15  scope of the contested case hearing shall include the 
 22.16  maltreatment determination, disqualification, and the licensing 
 22.17  sanction or denial of a license.  In such cases, a fair hearing 
 22.18  under section 256.045 shall not be conducted as provided for in 
 22.19  sections 626.556, subdivision 10i, and 626.557, subdivision 9d. 
 22.20     (b) In consolidated contested case hearings regarding 
 22.21  sanctions issued in family child care, child foster care, and 
 22.22  adult foster care, the county attorney shall defend the 
 22.23  commissioner's orders in accordance with section 245A.16, 
 22.24  subdivision 4. 
 22.25     (c) The commissioner's final order under subdivision 5 is 
 22.26  the final agency action on the issue of maltreatment and 
 22.27  disqualification, including for purposes of subsequent 
 22.28  background studies under chapter 245C and is the only 
 22.29  administrative appeal of the final agency determination, 
 22.30  specifically, including a challenge to the accuracy and 
 22.31  completeness of data under section 13.04. 
 22.32     (d) When consolidated hearings under this subdivision 
 22.33  involve a licensing sanction based on a previous maltreatment 
 22.34  determination for which the commissioner has issued a final 
 22.35  order in an appeal of that determination under section 256.045, 
 22.36  or the individual failed to exercise the right to appeal the 
 23.1   previous maltreatment determination under section 626.556, 
 23.2   subdivision 10i, or 626.557, subdivision 9d, the commissioner's 
 23.3   order is conclusive on the issue of maltreatment.  In such 
 23.4   cases, the scope of the administrative law judge's review shall 
 23.5   be limited to the disqualification and the licensing sanction or 
 23.6   denial of a license.  In the case of a denial of a license or a 
 23.7   licensing sanction issued to a facility based on a maltreatment 
 23.8   determination regarding an individual who is not the license 
 23.9   holder or a household member, the scope of the administrative 
 23.10  law judge's review includes the maltreatment determination. 
 23.11     (e) If a maltreatment determination or disqualification, 
 23.12  which was not set aside or was not rescinded under sections 
 23.13  245C.21 to 245C.27 section 245C.22, is the basis for a denial of 
 23.14  a license under section 245A.05 or a licensing sanction under 
 23.15  section 245A.07, and the disqualified subject is an individual 
 23.16  other than the license holder and upon whom a background study 
 23.17  must be conducted under section 245C.03, the hearings of all 
 23.18  parties may be consolidated into a single contested case hearing 
 23.19  upon consent of all parties and the administrative law judge.  
 23.20     Sec. 23.  Minnesota Statutes 2002, section 245A.08, 
 23.21  subdivision 5, is amended to read: 
 23.22     Subd. 5.  [NOTICE OF THE COMMISSIONER'S FINAL ORDER.] After 
 23.23  considering the findings of fact, conclusions, and 
 23.24  recommendations of the administrative law judge, the 
 23.25  commissioner shall issue a final order.  The commissioner shall 
 23.26  consider, but shall not be bound by, the recommendations of the 
 23.27  administrative law judge.  The appellant must be notified of the 
 23.28  commissioner's final order as required by chapter 14 and 
 23.29  Minnesota Rules, parts 1400.8510 1400.8505 to 1400.8612 and 
 23.30  successor rules.  The notice must also contain information about 
 23.31  the appellant's rights under chapter 14 and Minnesota Rules, 
 23.32  parts 1400.8510 1400.8505 to 1400.8612 and successor rules.  The 
 23.33  institution of proceedings for judicial review of the 
 23.34  commissioner's final order shall not stay the enforcement of the 
 23.35  final order except as provided in section 14.65.  A license 
 23.36  holder and each controlling individual of a license holder whose 
 24.1   license has been revoked because of noncompliance with 
 24.2   applicable law or rule must not be granted a license for five 
 24.3   years following the revocation.  An applicant whose application 
 24.4   was denied must not be granted a license for two years following 
 24.5   a denial, unless the applicant's subsequent application contains 
 24.6   new information which constitutes a substantial change in the 
 24.7   conditions that caused the previous denial. 
 24.8      Sec. 24.  Minnesota Statutes 2003 Supplement, section 
 24.9   245A.085, is amended to read: 
 24.10     245A.085 [CONSOLIDATION OF HEARINGS; RECONSIDERATION.] 
 24.11     Hearings authorized under this chapter, chapter 245C, and 
 24.12  sections 256.045, 626.556, and 626.557, shall be consolidated if 
 24.13  feasible and in accordance with other applicable statutes and 
 24.14  rules.  Reconsideration under sections 245C.28; 626.556, 
 24.15  subdivision 10i; and 626.557, subdivision 9d, shall also be 
 24.16  consolidated if feasible. 
 24.17     Sec. 25.  Minnesota Statutes 2003 Supplement, section 
 24.18  245A.11, subdivision 2b, is amended to read: 
 24.19     Subd. 2b.  [ADULT FOSTER CARE; FAMILY ADULT DAY CARE 
 24.20  SERVICES.] An adult foster care license holder licensed under 
 24.21  the conditions in subdivision 2a may also provide family adult 
 24.22  day care for adults age 55 or over if no persons in the adult 
 24.23  foster or adult family adult day care services program have a 
 24.24  serious and persistent mental illness or a developmental 
 24.25  disability.  The maximum combined capacity for adult foster care 
 24.26  and family adult day care is five adults, except that the 
 24.27  commissioner may grant a variance for a family adult day care 
 24.28  provider to admit up to seven individuals for day care services 
 24.29  and one individual for respite care services, if all of the 
 24.30  following requirements are met:  (1) the variance complies with 
 24.31  section 245A.04, subdivision 9; (2) a second caregiver is 
 24.32  present whenever six or more clients are being served; and (3) 
 24.33  the variance is recommended by the county social service agency 
 24.34  in the county where the provider is located.  A separate license 
 24.35  is not required to provide family adult day care under this 
 24.36  subdivision.  Family adult day services provided in a licensed 
 25.1   adult foster care setting must be provided as specified under 
 25.2   section 245A.143.  Authorization to provide family adult day 
 25.3   services in the adult foster care setting shall be printed on 
 25.4   the license certificate by the commissioner.  Adult foster care 
 25.5   homes providing services to five adults licensed under this 
 25.6   section and family adult day services licensed under section 
 25.7   245A.143 shall not be subject to licensure by the commissioner 
 25.8   of health under the provisions of chapter 144, 144A, 157, or any 
 25.9   other law requiring facility licensure by the commissioner of 
 25.10  health. 
 25.11     Sec. 26.  Minnesota Statutes 2002, section 245A.14, 
 25.12  subdivision 4, is amended to read: 
 25.13     Subd. 4.  [SPECIAL FAMILY DAY CARE HOMES.] Nonresidential 
 25.14  child care programs serving 14 or fewer children that are 
 25.15  conducted at a location other than the license holder's own 
 25.16  residence shall be licensed under this section and the rules 
 25.17  governing family day care or group family day care if:  
 25.18     (a) the license holder is the primary provider of care and 
 25.19  the nonresidential child care program is conducted in a dwelling 
 25.20  that is located on a residential lot; 
 25.21     (b) the license holder is an employer who may or may not be 
 25.22  the primary provider of care, and the purpose for the child care 
 25.23  program is to provide child care services to children of the 
 25.24  license holder's employees; or 
 25.25     (c) the license holder is a church or religious 
 25.26  organization; or 
 25.27     (d) the license holder is a community collaborative child 
 25.28  care provider.  For purposes of this subdivision, a community 
 25.29  collaborative child care provider is a provider participating in 
 25.30  a cooperative agreement with a community action agency as 
 25.31  defined in section 119A.375. 
 25.32     Sec. 27.  [245A.143] [FAMILY ADULT DAY SERVICES.] 
 25.33     Subdivision 1.  [SCOPE.] (a) The licensing standards in 
 25.34  this section must be met to obtain and maintain a license to 
 25.35  provide family adult day services.  For the purposes of this 
 25.36  section, family adult day services means a program operating 
 26.1   fewer than 24 hours per day that provides functionally impaired 
 26.2   adults, none of which are under age 55, have serious or 
 26.3   persistent mental illness, or have mental retardation or a 
 26.4   related condition, with an individualized and coordinated set of 
 26.5   services including health services, social services, and 
 26.6   nutritional services that are directed at maintaining or 
 26.7   improving the participants' capabilities for self-care. 
 26.8      (b) A family adult day services license shall only be 
 26.9   issued when the services are provided in the license holder's 
 26.10  primary residence, and the license holder is the primary 
 26.11  provider of care.  The license holder may not serve more than 
 26.12  eight adults at one time, including residents, if any, served 
 26.13  under a license issued under Minnesota Rules, parts 9555.5105 to 
 26.14  9555.6265. 
 26.15     (c) An adult foster care license holder may provide family 
 26.16  adult day services if the license holder meets the requirements 
 26.17  of this section. 
 26.18     (d) When an applicant or license holder submits an 
 26.19  application for initial licensure or relicensure for both adult 
 26.20  foster care and family adult day services, the county agency 
 26.21  shall process the request as a single application and shall 
 26.22  conduct concurrent routine licensing inspections. 
 26.23     (e) Adult foster care license holders providing family 
 26.24  adult day services under their foster care license on March 30, 
 26.25  2004, shall be permitted to continue providing these services 
 26.26  with no additional requirements until their adult foster care 
 26.27  license is due for renewal.  At the time of relicensure, an 
 26.28  adult foster care license holder may continue to provide family 
 26.29  adult day services upon demonstration of compliance with this 
 26.30  section.  Adult foster care license holders who provide only 
 26.31  family adult day services on August 1, 2004, may apply for a 
 26.32  license under this section instead of an adult foster care 
 26.33  license. 
 26.34     Subd. 2.  [DEFINITIONS.] (a) For the purposes of this 
 26.35  section, the terms defined in this subdivision have the 
 26.36  following meanings unless otherwise provided for by text. 
 27.1      (b) [CAREGIVER.] "Caregiver" means a spouse, adult child, 
 27.2   parent, relative, friend, or others who normally provide unpaid 
 27.3   support or care to the individual needing assistance.  For the 
 27.4   purpose of this section, the caregiver may or may not have legal 
 27.5   or financial responsibility for the participant. 
 27.6      (c) [PARTICIPANT.] "Participant" means a functionally 
 27.7   impaired adult receiving family adult day services. 
 27.8      (d) [CONSULTATION BY A HEALTH CARE 
 27.9   PROFESSIONAL.] "Consultation by a health care professional" 
 27.10  means the review and oversight of the participant's 
 27.11  health-related services by a registered nurse, physician, or 
 27.12  mental health professional. 
 27.13     Subd. 3.  [POLICY AND PROGRAM INFORMATION 
 27.14  REQUIREMENTS.] (a) The license holder shall have available for 
 27.15  review, and shall distribute to participants and their 
 27.16  caregivers upon admission, written information about: 
 27.17     (1) the scope of the programs, services, and care offered 
 27.18  by the license holder; 
 27.19     (2) a description of the population to be served by the 
 27.20  license holder; 
 27.21     (3) a description of individual conditions which the 
 27.22  license holder is not prepared to accept, such as a communicable 
 27.23  disease requiring isolation, a history of violence to self or 
 27.24  others, unmanageable incontinence, or uncontrollable wandering; 
 27.25     (4) the participants' rights and procedure for presenting 
 27.26  grievances, including the name, address, and telephone number of 
 27.27  the Office of Ombudsman for Older Minnesotans and the county 
 27.28  licensing department, to which a participant or participant's 
 27.29  caregiver may submit an oral or written complaint; 
 27.30     (5) the license holder's policy on and arrangements for 
 27.31  providing transportation; 
 27.32     (6) the license holder's policy on providing meals and 
 27.33  snacks; 
 27.34     (7) the license holder's fees, billing arrangements, and 
 27.35  plans for payment; 
 27.36     (8) the license holder's policy governing the presence of 
 28.1   pets in the home; 
 28.2      (9) the license holder's policy on smoking in the home; 
 28.3      (10) types of insurance coverage carried by the license 
 28.4   holder; 
 28.5      (11) information on orientation requirements under section 
 28.6   245A.65, subdivisions 1, paragraph (c), and 2, paragraph (a), 
 28.7   clause (4); 
 28.8      (12) the terms and conditions of the license holder's 
 28.9   license issued by the department; 
 28.10     (13) the license holder's plan for emergency evacuation of 
 28.11  participants involving fire, weather, and other disasters.  The 
 28.12  plan must include instructions for evacuation or rescue of 
 28.13  participants, identification of an emergency shelter area, 
 28.14  quarterly fire drill schedule, and staff responsibilities; and 
 28.15     (14) the license holder's policy for handling harmful 
 28.16  objects, materials, or equipment including the storage of 
 28.17  poisonous chemicals, use of appliances, sharp instruments, 
 28.18  matches, or any other potentially harmful materials. 
 28.19     (b) The information in paragraph (a) must be provided in 
 28.20  writing to the commissioner's representative upon request and 
 28.21  must be available for inspection by the commissioner's 
 28.22  representative at the home. 
 28.23     Subd. 4.  [ADMISSION SCREENING AND EVALUATION.] (a) Before 
 28.24  admitting an individual into the family adult day services 
 28.25  program, the license holder shall screen the individual to 
 28.26  determine how or whether the license holder can serve the 
 28.27  individual, based on the license holder's policies, services, 
 28.28  expertise, and the individual's needs and condition.  If 
 28.29  possible, the screening shall include an interview with the 
 28.30  individual and with the individual's caregiver. 
 28.31     (b) The screening required under paragraph (a) shall 
 28.32  include an evaluation of the health, nutritional, and social 
 28.33  services needs of the individual. 
 28.34     Subd. 5.  [SERVICE DELIVERY PLAN.] Before providing family 
 28.35  adult day services, an individual, the individual's caregiver, 
 28.36  the legal representative if there is one, the county or private 
 29.1   case manager, if applicable, and the license holder shall 
 29.2   develop a service delivery plan.  At a minimum, the service 
 29.3   delivery plan shall include: 
 29.4      (1) a description of the health services, nutritional 
 29.5   services, and social services to be arranged or provided by the 
 29.6   license holder and the frequency of those services and that the 
 29.7   services will be based on the needs of the individual; 
 29.8      (2) scheduled days and hours of participant's attendance at 
 29.9   the license holder's home; 
 29.10     (3) transportation arrangements for getting the participant 
 29.11  to and from the license holder's home; 
 29.12     (4) contingency plans if scheduled services cannot be 
 29.13  provided by the license holder; 
 29.14     (5) identification of responsibilities of the participant 
 29.15  and the license holder with respect to payment for the services; 
 29.16     (6) circumstances when emergency services will be called; 
 29.17  and 
 29.18     (7) identification of the license holder's discharge policy 
 29.19  when services are no longer needed or when the participant's 
 29.20  needs can no longer be met by the license holder. 
 29.21     Subd. 6.  [INDIVIDUAL SERVICE PLAN.] (a) The service plan 
 29.22  must be coordinated with other plans of services for the 
 29.23  participant, as appropriate. 
 29.24     (b) The service plan must be dated and revised when there 
 29.25  is a change in the needs of the participant or annually, 
 29.26  whichever occurs sooner. 
 29.27     Subd. 7.  [HEALTH SERVICES.] (a) The license holder shall 
 29.28  provide health services as specified in the service delivery 
 29.29  plan under the direction of the designated caregiver or county 
 29.30  or private case manager.  Health services must include: 
 29.31     (1) monitoring the participant's level of function and 
 29.32  health while participating; taking appropriate action for a 
 29.33  change in condition including immediately reporting changes to 
 29.34  the participant's caregiver, physician, mental health 
 29.35  professional, or registered nurse; and seeking consultation; 
 29.36     (2) offering information to participants and caregivers on 
 30.1   good health and safety practices; and 
 30.2      (3) maintaining a listing of health resources available for 
 30.3   referrals as needed by participants and caregivers. 
 30.4      (b) Unless the person is a licensed health care 
 30.5   practitioner qualified to administer medications, the person 
 30.6   responsible for medication administration or assistance shall 
 30.7   provide a certificate verifying successful completion of a 
 30.8   trained medication aid program for unlicensed personnel approved 
 30.9   by the Minnesota Department of Health or comparable program, or 
 30.10  biennially provide evidence of competency as demonstrated to a 
 30.11  registered nurse or physician. 
 30.12     (c) The license holder must have secure storage and 
 30.13  safeguarding of all medications with storage of medications in 
 30.14  their original container, know what information regarding 
 30.15  medication administration must be reported to a health care 
 30.16  professional, and must maintain a record of all medications 
 30.17  administered. 
 30.18     Subd. 8.  [NUTRITIONAL SERVICES.] (a) The license holder 
 30.19  shall ensure that food served is nutritious and meets any 
 30.20  special dietary needs of the participants as prescribed by the 
 30.21  participant's physician or dietitian as specified in the service 
 30.22  delivery plan.  
 30.23     (b) Food and beverages must be obtained, handled, and 
 30.24  properly stored to prevent contamination, spoilage, or a threat 
 30.25  to the health of a resident. 
 30.26     Subd. 9.  [SOCIAL SERVICES.] The license holder, in 
 30.27  consultation with the county or private case manager, when 
 30.28  appropriate, shall actively assist the participant in 
 30.29  identifying and achieving personal goals, support the 
 30.30  participant in maintaining personal support networks and 
 30.31  socially valued roles, provide assistance to the participant to 
 30.32  enable community participation, and refer participants to the 
 30.33  Office of Ombudsman for Older Minnesotans and other advocacy 
 30.34  organizations for assistance when there is a potential conflict 
 30.35  of interest between the license holder and the participant. 
 30.36     Subd. 10.  [PARTICIPANT RIGHTS.] (a) The license holder 
 31.1   shall adopt and comply with a participant bill of rights.  The 
 31.2   rights shall include the participants' right to: 
 31.3      (1) participate in the development of the service plan; 
 31.4      (2) refuse services or participation; 
 31.5      (3) privacy; 
 31.6      (4) confidentiality of participant information; and 
 31.7      (5) present grievances regarding treatment or services to 
 31.8   the Office of Ombudsman for Older Minnesotans or the county 
 31.9   licensing department.  The license holder's policies shall 
 31.10  include a procedure for addressing participant grievances, 
 31.11  including the name, address, and telephone number of the county 
 31.12  licensing department, to which a participant or participant 
 31.13  caregiver may submit an oral or written complaint. 
 31.14     (b) The license holder shall post the participant rights in 
 31.15  the home and shall provide a copy to the participant and the 
 31.16  participant's primary caregiver and legal representative if the 
 31.17  participant has one. 
 31.18     Subd. 11.  [STAFFING.] Whenever participants are in the 
 31.19  home, there must be present at least one individual who is 
 31.20  trained in basic first aid and certified in cardiopulmonary 
 31.21  resuscitation and the treatment of obstructed airways.  Whenever 
 31.22  there are six, seven, or eight participants present, there must 
 31.23  be a second staff person present. 
 31.24     Subd. 12.  [TRAINING.] The license holder and license 
 31.25  holder's staff must annually complete 12 hours of training 
 31.26  related to the health, nutritional, and social needs of the 
 31.27  license holder's target population.  License holders with six or 
 31.28  more years of licensure under this section or as an adult foster 
 31.29  care provider must annually complete six hours of training.  The 
 31.30  annual training must include training on the reporting of 
 31.31  maltreatment of vulnerable adults under sections 626.557 and 
 31.32  626.5572; license holder requirements governing maltreatment of 
 31.33  vulnerable adults under section 245A.65; and, when a license 
 31.34  holder serves participants who rely on medical monitoring 
 31.35  equipment to sustain life or monitor a medical condition, 
 31.36  training on medical equipment as required under section 245A.155 
 32.1   for foster care providers.  A record of all training must be 
 32.2   maintained in the home. 
 32.3      Subd. 13.  [RESIDENTIAL REQUIREMENTS.] (a) The home where 
 32.4   family adult day services are to be provided shall be classified 
 32.5   as a residential group R-3 occupancy under the State Building 
 32.6   Code and State Fire Code for purposes of building code and fire 
 32.7   code inspections.  A building code inspection is not required 
 32.8   for licensure under this section.  The state or local fire 
 32.9   marshal must inspect the family adult day services home 
 32.10  operating in the residence for compliance with the residential 
 32.11  group R-3 occupancy provisions of the State Fire Code. 
 32.12     (b) The licensed capacity of the home shall be limited by 
 32.13  the amount of indoor space available for use by participants.  
 32.14  The total indoor space available for use by participants must 
 32.15  equal at least 35 square feet for each participant, the license 
 32.16  holder, and each staff member present in the home.  In 
 32.17  determining the square footage of usable indoor space available, 
 32.18  the following must not be counted:  hallways, stairways, 
 32.19  closets, offices, restrooms, and utility and storage areas.  The 
 32.20  usable indoor space available must include a room or an area 
 32.21  that can be used as private space for providing personal hygiene 
 32.22  services or social services to participants. 
 32.23     (c) The residence must comply with all applicable local 
 32.24  ordinances.  
 32.25     Subd. 14.  [VARIANCES.] The commissioner may grant a 
 32.26  variance to any of the requirements in this section if the 
 32.27  conditions in section 245A.04, subdivision 9, are met. 
 32.28     Sec. 28.  Minnesota Statutes 2003 Supplement, section 
 32.29  245A.16, subdivision 1, is amended to read: 
 32.30     Subdivision 1.  [DELEGATION OF AUTHORITY TO AGENCIES.] (a) 
 32.31  County agencies and private agencies that have been designated 
 32.32  or licensed by the commissioner to perform licensing functions 
 32.33  and activities under section 245A.04 and chapter 245C, to 
 32.34  recommend denial of applicants under section 245A.05, to issue 
 32.35  correction orders, to issue variances, and recommend a 
 32.36  conditional license under section 245A.06, or to recommend 
 33.1   suspending or revoking a license or issuing a fine under section 
 33.2   245A.07, shall comply with rules and directives of the 
 33.3   commissioner governing those functions and with this section.  
 33.4   The following variances are excluded from the delegation of 
 33.5   variance authority and may be issued only by the commissioner: 
 33.6      (1) dual licensure of family child care and child foster 
 33.7   care, dual licensure of child and adult foster care, and adult 
 33.8   foster care and family child care; 
 33.9      (2) adult foster care maximum capacity; 
 33.10     (3) adult foster care minimum age requirement; 
 33.11     (4) child foster care maximum age requirement; 
 33.12     (5) variances regarding disqualified individuals except 
 33.13  that county agencies may issue variances under section 245C.30 
 33.14  regarding disqualified individuals when the county is 
 33.15  responsible for conducting a consolidated reconsideration 
 33.16  according to sections 245C.25 and 245C.27, subdivision 2, 
 33.17  clauses (a) and (b), of a county maltreatment determination and 
 33.18  a disqualification based on serious or recurring maltreatment; 
 33.19  and 
 33.20     (6) the required presence of a caregiver in the adult 
 33.21  foster care residence during normal sleeping hours. 
 33.22     (b) County agencies must report information about 
 33.23  disqualification reconsiderations under sections 245C.25 and 
 33.24  245C.27, subdivision 2, clauses (a) and (b), and variances 
 33.25  granted under paragraph (a), clause (5), to the commissioner at 
 33.26  least monthly in a format prescribed by the commissioner. 
 33.27     (c) For family day care programs, the commissioner may 
 33.28  authorize licensing reviews every two years after a licensee has 
 33.29  had at least one annual review. 
 33.30     (d) For family adult day services programs, the 
 33.31  commissioner may authorize licensing reviews every two years 
 33.32  after a licensee has had at least one annual review. 
 33.33     (e) A license issued under this section may be issued for 
 33.34  up to two years. 
 33.35     Sec. 29.  Minnesota Statutes 2002, section 245A.16, 
 33.36  subdivision 4, is amended to read: 
 34.1      Subd. 4.  [ENFORCEMENT OF THE COMMISSIONER'S ORDERS.] The 
 34.2   county or private agency shall enforce the commissioner's orders 
 34.3   under sections 245A.07 and, 245A.08, subdivision 5, and chapter 
 34.4   245C, according to the instructions of the commissioner.  The 
 34.5   county attorney shall assist the county agency in the 
 34.6   enforcement and defense of the commissioner's orders under 
 34.7   sections 245A.07 and, 245A.08, and chapter 245C, according to 
 34.8   the instructions of the commissioner, unless a conflict of 
 34.9   interest exists between the county attorney and the commissioner.
 34.10     Sec. 30.  Minnesota Statutes 2002, section 245A.22, 
 34.11  subdivision 2, is amended to read: 
 34.12     Subd. 2.  [ADMISSION.] (a) The license holder shall accept 
 34.13  as clients in the independent living assistance program only 
 34.14  individuals specified under section 256E.115 youth ages 16 to 21 
 34.15  who are in out-of-home placement, leaving out-of-home placement, 
 34.16  at risk of becoming homeless, or homeless. 
 34.17     (b) Youth who have current drug or alcohol problems, a 
 34.18  recent history of violent behaviors, or a mental health disorder 
 34.19  or issue that is not being resolved through counseling or 
 34.20  treatment are not eligible to receive the services described in 
 34.21  subdivision 1. 
 34.22     (c) Youth who are not employed, participating in employment 
 34.23  training, or enrolled in an academic program are not eligible to 
 34.24  receive transitional housing or independent living assistance. 
 34.25     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 34.26  following final enactment. 
 34.27     Sec. 31.  Minnesota Statutes 2003 Supplement, section 
 34.28  245A.22, subdivision 3, is amended to read: 
 34.29     Subd. 3.  [INDEPENDENT LIVING PLAN.] (a) Unless an 
 34.30  independent living plan has been developed by the local agency, 
 34.31  the license holder shall develop a plan based on the client's 
 34.32  individual needs that specifies objectives for the client.  The 
 34.33  services provided shall include those specified in this section. 
 34.34  The plan shall identify the persons responsible for 
 34.35  implementation of each part of the plan.  The plan shall be 
 34.36  reviewed as necessary, but at least annually. 
 35.1      (b) The following services, or adequate access to referrals 
 35.2   for the following services, must be made available to the 
 35.3   targeted youth participating in the programs described in 
 35.4   subdivision 1: 
 35.5      (1) counseling services for the youth and their families, 
 35.6   if appropriate, on site, to help with problems that contributed 
 35.7   to the homelessness or could impede making the transition to 
 35.8   independent living; 
 35.9      (2) educational, vocational, or employment services; 
 35.10     (3) health care; 
 35.11     (4) transportation services including, where appropriate, 
 35.12  assisting the child in obtaining a driver's license; 
 35.13     (5) money management skills training; 
 35.14     (6) planning for ongoing housing; 
 35.15     (7) social and recreational skills training; and 
 35.16     (8) assistance establishing and maintaining connections 
 35.17  with the child's family and community. 
 35.18     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 35.19  following final enactment. 
 35.20     Sec. 32.  Minnesota Statutes 2002, section 245B.02, is 
 35.21  amended by adding a subdivision to read: 
 35.22     Subd. 12a.  [INTERDISCIPLINARY TEAM.] "Interdisciplinary 
 35.23  team" means a team composed of the case manager, the person, the 
 35.24  person's legal representative and advocate, if any, and 
 35.25  representatives of providers of the service areas relevant to 
 35.26  the needs of the person as described in the individual service 
 35.27  plan. 
 35.28     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 35.29  following final enactment. 
 35.30     Sec. 33.  Minnesota Statutes 2003 Supplement, section 
 35.31  245B.03, subdivision 2, is amended to read: 
 35.32     Subd. 2.  [RELATIONSHIP TO OTHER STANDARDS GOVERNING 
 35.33  SERVICES FOR PERSONS WITH MENTAL RETARDATION OR RELATED 
 35.34  CONDITIONS.] (a) ICFs/MR are exempt from: 
 35.35     (1) section 245B.04; 
 35.36     (2) section 245B.06, subdivisions 4 and 6; and 
 36.1      (3) section 245B.07, subdivisions 4, paragraphs (b) and 
 36.2   (c); 7; and 8, paragraphs (1), clause (iv), and (2). 
 36.3      (b) License holders also licensed under chapter 144 as a 
 36.4   supervised living facility are exempt from section 245B.04. 
 36.5      (c) Residential service sites controlled by license holders 
 36.6   licensed under this chapter for home and community-based 
 36.7   waivered services for four or fewer adults are exempt from 
 36.8   compliance with Minnesota Rules, parts 9543.0040, subpart 2, 
 36.9   item C; 9555.5505; 9555.5515, items B and G; 9555.5605; 
 36.10  9555.5705; 9555.6125, subparts 3, item C, subitem (2), and 4 to 
 36.11  6; 9555.6185; 9555.6225, subpart 8; 9555.6245; 9555.6255; and 
 36.12  9555.6265; and as provided under section 245B.06, subdivision 2, 
 36.13  the license holder is exempt from the program abuse prevention 
 36.14  plans and individual abuse prevention plans otherwise required 
 36.15  under sections 245A.65, subdivision 2, and 626.557, subdivision 
 36.16  14.  The commissioner may approve alternative methods of 
 36.17  providing overnight supervision using the process and criteria 
 36.18  for granting a variance in section 245A.04, subdivision 9.  This 
 36.19  chapter does not apply to foster care homes that do not provide 
 36.20  residential habilitation services funded under the home and 
 36.21  community-based waiver programs defined in section 256B.092. 
 36.22     (d) Residential service sites controlled by license holders 
 36.23  licensed under this chapter for home and community-based 
 36.24  waivered services for four or fewer children are exempt from 
 36.25  compliance with Minnesota Rules, parts 9545.0130; 9545.0140; 
 36.26  9545.0150; 9545.0170; 9545.0220, subparts 1, items C, F, and I, 
 36.27  and 3; and 9545.0230 2960.3060, subpart 3, items B and C; 
 36.28  2960.3070; 2960.3100, subpart 1, items C, F, and I; and 
 36.29  2960.3210. 
 36.30     (e) The commissioner may exempt license holders from 
 36.31  applicable standards of this chapter when the license holder 
 36.32  meets the standards under section 245A.09, subdivision 7.  
 36.33  License holders that are accredited by an independent 
 36.34  accreditation body shall continue to be licensed under this 
 36.35  chapter. 
 36.36     (f) License holders governed by sections 245B.02 to 245B.07 
 37.1   must also meet the licensure requirements in chapter 245A.  
 37.2      (g) Nothing in this chapter prohibits license holders from 
 37.3   concurrently serving consumers with and without mental 
 37.4   retardation or related conditions provided this chapter's 
 37.5   standards are met as well as other relevant standards. 
 37.6      (h) The documentation that sections 245B.02 to 245B.07 
 37.7   require of the license holder meets the individual program plan 
 37.8   required in section 256B.092 or successor provisions. 
 37.9      Sec. 34.  Minnesota Statutes 2002, section 245B.05, 
 37.10  subdivision 2, is amended to read: 
 37.11     Subd. 2.  [LICENSED CAPACITY FOR FACILITY-BASED DAY 
 37.12  TRAINING AND HABILITATION SERVICES.] The licensed capacity of 
 37.13  each day training and habilitation service sites site must be 
 37.14  determined by the amount of primary space available, the 
 37.15  scheduling of activities at other service sites, and the space 
 37.16  requirements of consumers receiving services at the site.  
 37.17  Primary space does not include hallways, stairways, closets, 
 37.18  utility areas, bathrooms, kitchens, and floor areas beneath 
 37.19  stationary equipment.  A facility-based day training and 
 37.20  habilitation site must have a minimum of 40 square feet of 
 37.21  primary space must be available for each consumer who is engaged 
 37.22  in a day training and habilitation activity at the site for 
 37.23  which the licensed capacity must be determined present at the 
 37.24  site at any one time.  Licensed capacity under this subdivision 
 37.25  does not apply to:  (1) consumers receiving community-based day 
 37.26  training and habilitation services; and (2) the temporary use of 
 37.27  a facility-based training and habilitation service site for the 
 37.28  limited purpose of providing transportation to consumers 
 37.29  receiving community-based day training and habilitation services 
 37.30  from the license holder.  The license holder must comply at all 
 37.31  times with all applicable fire and safety codes under 
 37.32  subdivision 4 and adequate supervision requirements under 
 37.33  section 245B.055 for all persons receiving day training and 
 37.34  habilitation services. 
 37.35     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 37.36  following final enactment. 
 38.1      Sec. 35.  [245B.055] [MINIMUM LEVEL OF STAFFING REQUIRED 
 38.2   FOR DAY TRAINING AND HABILITATION SERVICES.] 
 38.3      Subdivision 1.  [SCOPE.] This section applies only to 
 38.4   license holders that provide day training and habilitation 
 38.5   services. 
 38.6      Subd. 2.  [FACTORS.] (a) The number of direct service staff 
 38.7   members that a license holder must have on duty at a given time 
 38.8   to meet the minimum staffing requirements established in this 
 38.9   section varies according to: 
 38.10     (1) the number of persons who are enrolled and receiving 
 38.11  direct services at that given time; 
 38.12     (2) the staff ratio requirement established under 
 38.13  subdivision 3 for each of the persons who is present; and 
 38.14     (3) whether the conditions described in subdivision 8 exist 
 38.15  and warrant additional staffing beyond the number determined to 
 38.16  be needed under subdivision 7. 
 38.17     (b) The commissioner shall consider the factors in 
 38.18  paragraph (a) in determining a license holder's compliance with 
 38.19  the staffing requirements and shall further consider whether the 
 38.20  staff ratio requirement established under subdivision 3 for each 
 38.21  person receiving services accurately reflects the person's need 
 38.22  for staff time. 
 38.23     Subd. 3.  [DETERMINING AND DOCUMENTING THE STAFF RATIO 
 38.24  REQUIREMENT FOR EACH PERSON RECEIVING SERVICES.] The case 
 38.25  manager, in consultation with the interdisciplinary team shall 
 38.26  determine at least once each year which of the ratios in 
 38.27  subdivisions 4, 5, and 6 is appropriate for each person 
 38.28  receiving services on the basis of the characteristics described 
 38.29  in subdivisions 4, 5, and 6.  The ratio assigned each person and 
 38.30  the documentation of how the ratio was arrived at must be kept 
 38.31  in each person's individual service plan.  Documentation must 
 38.32  include an assessment of the person with respect to the 
 38.33  characteristics in subdivisions 4, 5, and 6 recorded on a 
 38.34  standard assessment form required by the commissioner. 
 38.35     Subd. 4.  [PERSON REQUIRING STAFF RATIO OF ONE TO FOUR.] A 
 38.36  person who has one or more of the following characteristics must 
 39.1   be assigned a staff ratio requirement of one to four: 
 39.2      (1) on a daily basis the person requires total care and 
 39.3   monitoring or constant hand-over-hand physical guidance to 
 39.4   successfully complete at least three of the following activities:
 39.5   toileting, communicating basic needs, eating, or ambulating; or 
 39.6      (2) the person assaults others, is self-injurious, or 
 39.7   manifests severe dysfunctional behaviors at a documented level 
 39.8   of frequency, intensity, or duration requiring frequent daily 
 39.9   ongoing intervention and monitoring as established in an 
 39.10  approved behavior management program. 
 39.11     Subd. 5.  [PERSON REQUIRING STAFF RATIO OF ONE TO EIGHT.] A 
 39.12  person who has all of the following characteristics must be 
 39.13  assigned a staff ratio requirement of one to eight: 
 39.14     (1) the person does not meet the requirements in 
 39.15  subdivision 4; and 
 39.16     (2) on a daily basis the person requires verbal prompts or 
 39.17  spot checks and minimal or no physical assistance to 
 39.18  successfully complete at least three of the following 
 39.19  activities:  toileting, communicating basic needs, eating, or 
 39.20  ambulating. 
 39.21     Subd. 6.  [PERSON REQUIRING STAFF RATIO OF ONE TO SIX.] A 
 39.22  person who does not have any of the characteristics described in 
 39.23  subdivision 4 or 5 must be assigned a staff ratio requirement of 
 39.24  one to six. 
 39.25     Subd. 7.  [DETERMINING NUMBER OF DIRECT SERVICE STAFF 
 39.26  REQUIRED.] The minimum number of direct service staff members 
 39.27  required at any one time to meet the combined staff ratio 
 39.28  requirements of the persons present at that time can be 
 39.29  determined by following the steps in clauses (1) through (4): 
 39.30     (1) assign each person in attendance the three-digit 
 39.31  decimal below that corresponds to the staff ratio requirement 
 39.32  assigned to that person.  A staff ratio requirement of one to 
 39.33  four equals 0.250.  A staff ratio requirement of one to eight 
 39.34  equals 0.125.  A staff ratio requirement of one to six equals 
 39.35  0.166; 
 39.36     (2) add all of the three-digit decimals (one three-digit 
 40.1   decimal for every person in attendance) assigned in clause (1); 
 40.2      (3) when the sum in clause (2) falls between two whole 
 40.3   numbers, round off the sum to the larger of the two whole 
 40.4   numbers; and 
 40.5      (4) the larger of the two whole numbers in clause (3) 
 40.6   equals the number of direct service staff members needed to meet 
 40.7   the staff ratio requirements of the persons in attendance. 
 40.8      Subd. 8.  [CONDITIONS REQUIRING ADDITIONAL DIRECT SERVICE 
 40.9   STAFF.] The license holder shall increase the number of direct 
 40.10  service staff members present at any one time beyond the number 
 40.11  arrived at in subdivision 4 if necessary when any one or 
 40.12  combination of the following circumstances can be documented by 
 40.13  the commissioner as existing: 
 40.14     (1) the health and safety needs of the persons receiving 
 40.15  services cannot be met by the number of staff members available 
 40.16  under the staffing pattern in effect even though the number has 
 40.17  been accurately calculated under subdivision 7; or 
 40.18     (2) the behavior of a person presents an immediate danger 
 40.19  and the person is not eligible for a special needs rate 
 40.20  exception under Minnesota Rules, parts 9510.1020 to 9510.1140. 
 40.21     Subd. 9.  [SUPERVISION REQUIREMENTS.] At no time shall one 
 40.22  direct service staff member be assigned responsibility for 
 40.23  supervision and training of more than ten persons receiving 
 40.24  supervision and training, except as otherwise stated in each 
 40.25  person's risk management plan. 
 40.26     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 40.27  following final enactment. 
 40.28     Sec. 36.  Minnesota Statutes 2002, section 245B.07, 
 40.29  subdivision 8, is amended to read: 
 40.30     Subd. 8.  [POLICIES AND PROCEDURES.] The license holder 
 40.31  must develop and implement the policies and procedures in 
 40.32  paragraphs (1) to (3). 
 40.33     (1) policies and procedures that promote consumer health 
 40.34  and safety by ensuring: 
 40.35     (i) consumer safety in emergency situations as identified 
 40.36  in section 245B.05, subdivision 7; 
 41.1      (ii) consumer health through sanitary practices; 
 41.2      (iii) safe transportation, when the license holder is 
 41.3   responsible for transportation of consumers, with provisions for 
 41.4   handling emergency situations; 
 41.5      (iv) a system of record keeping for both individuals and 
 41.6   the organization, for review of incidents and emergencies, and 
 41.7   corrective action if needed; 
 41.8      (v) a plan for responding to and reporting all emergencies, 
 41.9   including deaths, medical emergencies, illnesses, accidents, 
 41.10  missing consumers, all incidents, as defined in section 245B.02, 
 41.11  subdivision 10, fires, severe weather and natural disasters, 
 41.12  bomb threats, and other threats and reporting all incidents 
 41.13  required to be reported under section 245B.05, subdivision 7; 
 41.14     (vi) safe medication administration as identified in 
 41.15  section 245B.05, subdivision 5, incorporating an observed skill 
 41.16  assessment to ensure that staff demonstrate the ability to 
 41.17  administer medications consistent with the license holder's 
 41.18  policy and procedures; 
 41.19     (vii) psychotropic medication monitoring when the consumer 
 41.20  is prescribed a psychotropic medication, including the use of 
 41.21  the psychotropic medication use checklist.  If the 
 41.22  responsibility for implementing the psychotropic medication use 
 41.23  checklist has not been assigned in the individual service plan 
 41.24  and the consumer lives in a licensed site, the residential 
 41.25  license holder shall be designated; and 
 41.26     (viii) criteria for admission or service initiation 
 41.27  developed by the license holder; 
 41.28     (2) policies and procedures that protect consumer rights 
 41.29  and privacy by ensuring: 
 41.30     (i) consumer data privacy, in compliance with the Minnesota 
 41.31  Data Practices Act, chapter 13; and 
 41.32     (ii) that complaint procedures provide consumers with a 
 41.33  simple process to bring grievances and consumers receive a 
 41.34  response to the grievance within a reasonable time period.  The 
 41.35  license holder must provide a copy of the program's grievance 
 41.36  procedure and time lines for addressing grievances.  The 
 42.1   program's grievance procedure must permit consumers served by 
 42.2   the program and the authorized representatives to bring a 
 42.3   grievance to the highest level of authority in the program; and 
 42.4      (3) policies and procedures that promote continuity and 
 42.5   quality of consumer supports by ensuring: 
 42.6      (i) continuity of care and service coordination, including 
 42.7   provisions for service termination, temporary service 
 42.8   suspension, and efforts made by the license holder to coordinate 
 42.9   services with other vendors who also provide support to the 
 42.10  consumer.  The policy must include the following requirements: 
 42.11     (A) the license holder must notify the consumer or 
 42.12  consumer's legal representative and the consumer's case manager 
 42.13  in writing of the intended termination or temporary service 
 42.14  suspension and the consumer's right to seek a temporary order 
 42.15  staying the termination or suspension of service according to 
 42.16  the procedures in section 256.045, subdivision 4a or subdivision 
 42.17  6, paragraph (c); 
 42.18     (B) notice of the proposed termination of services, 
 42.19  including those situations that began with a temporary service 
 42.20  suspension, must be given at least 60 days before the proposed 
 42.21  termination is to become effective; 
 42.22     (C) the license holder must provide information requested 
 42.23  by the consumer or consumer's legal representative or case 
 42.24  manager when services are temporarily suspended or upon notice 
 42.25  of termination; 
 42.26     (D) use of temporary service suspension procedures are 
 42.27  restricted to situations in which the consumer's behavior causes 
 42.28  immediate and serious danger to the health and safety of the 
 42.29  individual or others; 
 42.30     (E) prior to giving notice of service termination or 
 42.31  temporary service suspension, the license holder must document 
 42.32  actions taken to minimize or eliminate the need for service 
 42.33  termination or temporary service suspension; and 
 42.34     (F) during the period of temporary service suspension, the 
 42.35  license holder will work with the appropriate county agency to 
 42.36  develop reasonable alternatives to protect the individual and 
 43.1   others; and 
 43.2      (ii) quality services measured through a program evaluation 
 43.3   process including regular evaluations of consumer satisfaction 
 43.4   and sharing the results of the evaluations with the consumers 
 43.5   and legal representatives. 
 43.6      Sec. 37.  Minnesota Statutes 2002, section 245B.07, 
 43.7   subdivision 12, is amended to read: 
 43.8      Subd. 12.  [SEPARATE LICENSE REQUIRED FOR SEPARATE SITES.] 
 43.9   The license holder shall apply for separate licenses for each 
 43.10  day training and habilitation service site owned or leased by 
 43.11  the license holder at which persons receiving services and the 
 43.12  provider's employees who provide training and habilitation 
 43.13  services are present for a cumulative total of more than 30 days 
 43.14  within any 12-month period, and for each residential service 
 43.15  site.  Notwithstanding this subdivision, a separate license is 
 43.16  not required for a day training and habilitation service site 
 43.17  used only for the limited purpose of providing transportation to 
 43.18  consumers receiving community-based day training and 
 43.19  habilitation services from a license holder. 
 43.20     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 43.21  following final enactment. 
 43.22     Sec. 38.  Minnesota Statutes 2003 Supplement, section 
 43.23  245C.02, subdivision 18, is amended to read: 
 43.24     Subd. 18.  [SERIOUS MALTREATMENT.] (a) "Serious 
 43.25  maltreatment" means sexual abuse, maltreatment resulting in 
 43.26  death, maltreatment resulting in serious injury which reasonably 
 43.27  requires the care of a physician whether or not the care of a 
 43.28  physician was sought, or abuse resulting in serious injury. 
 43.29     (b) For purposes of this definition, "care of a physician" 
 43.30  is treatment received or ordered by a physician but does not 
 43.31  include diagnostic testing, assessment, or observation. 
 43.32     (c) For purposes of this definition, "abuse resulting in 
 43.33  serious injury" means:  bruises, bites, skin laceration, or 
 43.34  tissue damage; fractures; dislocations; evidence of internal 
 43.35  injuries; head injuries with loss of consciousness; extensive 
 43.36  second-degree or third-degree burns and other burns for which 
 44.1   complications are present; extensive second-degree or 
 44.2   third-degree frostbite and other frostbite for which 
 44.3   complications are present; irreversible mobility or avulsion of 
 44.4   teeth; injuries to the eyes; ingestion of foreign substances and 
 44.5   objects that are harmful; near drowning; and heat exhaustion or 
 44.6   sunstroke. 
 44.7      (d) Serious maltreatment includes neglect when it results 
 44.8   in criminal sexual conduct against a child or vulnerable adult. 
 44.9      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 44.10  following final enactment. 
 44.11     Sec. 39.  Minnesota Statutes 2003 Supplement, section 
 44.12  245C.03, subdivision 1, is amended to read: 
 44.13     Subdivision 1.  [LICENSED PROGRAMS.] (a) The commissioner 
 44.14  shall conduct a background study on: 
 44.15     (1) the applicant person or persons applying for a license; 
 44.16     (2) an individual age 13 and over living in the household 
 44.17  where the licensed program will be provided; 
 44.18     (3) current employees or contractors of the applicant who 
 44.19  will have direct contact with persons served by the facility, 
 44.20  agency, or program ; 
 44.21     (4) volunteers or student volunteers who will have direct 
 44.22  contact with persons served by the program to provide program 
 44.23  services if the contact is not under the continuous, direct 
 44.24  supervision by an individual listed in clause (1) or (3); 
 44.25     (5) an individual age ten to 12 living in the household 
 44.26  where the licensed services will be provided when the 
 44.27  commissioner has reasonable cause; and 
 44.28     (6) an individual who, without providing direct contact 
 44.29  services at a licensed program, may have unsupervised access to 
 44.30  children or vulnerable adults receiving services from a program 
 44.31  licensed to provide: 
 44.32     (i) family child care for children; 
 44.33     (ii) foster care for children in the provider's own home; 
 44.34  or 
 44.35     (iii) foster care or day care services for adults in the 
 44.36  provider's own home; and 
 45.1      (7) all managerial officials as defined under section 
 45.2   245A.02, subdivision 5a. 
 45.3   The commissioner must have reasonable cause to study an 
 45.4   individual under this clause subdivision. 
 45.5      (b) For family child foster care settings, a short-term 
 45.6   substitute caregiver providing direct contact services for a 
 45.7   child for less than 72 hours of continuous care is not required 
 45.8   to receive a background study under this chapter. 
 45.9      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 45.10  following final enactment. 
 45.11     Sec. 40.  Minnesota Statutes 2003 Supplement, section 
 45.12  245C.03, is amended by adding a subdivision to read: 
 45.13     Subd. 5.  [OTHER STATE AGENCIES.] The commissioner shall 
 45.14  conduct background studies on applicants and license holders 
 45.15  under the jurisdiction of other state agencies who are required 
 45.16  in other statutory sections to initiate background studies under 
 45.17  this chapter, including the applicant's or license holder's 
 45.18  employees, contractors, and volunteers when required under other 
 45.19  statutory sections. 
 45.20     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 45.21  following final enactment. 
 45.22     Sec. 41.  Minnesota Statutes 2003 Supplement, section 
 45.23  245C.05, subdivision 1, is amended to read: 
 45.24     Subdivision 1.  [INDIVIDUAL STUDIED.] (a) The individual 
 45.25  who is the subject of the background study must provide the 
 45.26  applicant, license holder, or other entity under section 245C.04 
 45.27  with sufficient information to ensure an accurate study, 
 45.28  including: 
 45.29     (1) the individual's first, middle, and last name and all 
 45.30  other names by which the individual has been known; 
 45.31     (2) home address, city, county, and state of residence for 
 45.32  the past five years; 
 45.33     (3) zip code; 
 45.34     (4) sex; 
 45.35     (5) date of birth; and 
 45.36     (6) Minnesota driver's license number or state 
 46.1   identification number. 
 46.2      (b) Every subject of a background study conducted by 
 46.3   counties or private agencies under this chapter must also 
 46.4   provide the home address, city, county, and state of residence 
 46.5   for the past five years. 
 46.6      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 46.7   following final enactment. 
 46.8      Sec. 42.  Minnesota Statutes 2003 Supplement, section 
 46.9   245C.05, subdivision 2, is amended to read: 
 46.10     Subd. 2.  [APPLICANT, LICENSE HOLDER, OR OTHER ENTITY.] The 
 46.11  applicant, license holder, or other entity under section 245C.04 
 46.12  entities as provided in this chapter shall provide the 
 46.13  information collected under subdivision 1 about an individual 
 46.14  who is the subject of the background study on forms or in a 
 46.15  format prescribed by the commissioner. 
 46.16     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 46.17  following final enactment. 
 46.18     Sec. 43.  Minnesota Statutes 2003 Supplement, section 
 46.19  245C.05, subdivision 5, is amended to read: 
 46.20     Subd. 5.  [FINGERPRINTS.] (a) For any background study 
 46.21  completed under this section chapter, when the commissioner has 
 46.22  reasonable cause to believe that further pertinent information 
 46.23  may exist on the subject of the background study, the subject 
 46.24  shall provide the commissioner with a set of classifiable 
 46.25  fingerprints obtained from an authorized law enforcement agency. 
 46.26     (b) For purposes of requiring fingerprints, the 
 46.27  commissioner has reasonable cause when, but not limited to, the: 
 46.28     (1) information from the Bureau of Criminal Apprehension 
 46.29  indicates that the subject is a multistate offender; 
 46.30     (2) information from the Bureau of Criminal Apprehension 
 46.31  indicates that multistate offender status is undetermined; or 
 46.32     (3) commissioner has received a report from the subject or 
 46.33  a third party indicating that the subject has a criminal history 
 46.34  in a jurisdiction other than Minnesota. 
 46.35     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 46.36  following final enactment. 
 47.1      Sec. 44.  Minnesota Statutes 2003 Supplement, section 
 47.2   245C.05, subdivision 6, is amended to read: 
 47.3      Subd. 6.  [APPLICANT, LICENSE HOLDER, REGISTRANT OTHER 
 47.4   ENTITIES, AND AGENCIES.] (a) The applicant, license 
 47.5   holder, registrant other entities as provided in this chapter, 
 47.6   Bureau of Criminal Apprehension, commissioner of health, and 
 47.7   county agencies shall help with the study by giving the 
 47.8   commissioner criminal conviction data and reports about the 
 47.9   maltreatment of adults substantiated under section 626.557 and 
 47.10  the maltreatment of minors in licensed programs substantiated 
 47.11  under section 626.556. 
 47.12     (b) If a background study is initiated by an applicant or, 
 47.13  license holder, or other entities as provided in this chapter, 
 47.14  and the applicant or, license holder, or other entity receives 
 47.15  information about the possible criminal or maltreatment history 
 47.16  of an individual who is the subject of the background study, the 
 47.17  applicant or, license holder, or other entity must immediately 
 47.18  provide the information to the commissioner. 
 47.19     (c) The program or county or other agency must provide 
 47.20  written notice to the individual who is the subject of the 
 47.21  background study of the requirements under this subdivision. 
 47.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 47.23  following final enactment. 
 47.24     Sec. 45.  Minnesota Statutes 2003 Supplement, section 
 47.25  245C.08, subdivision 2, is amended to read: 
 47.26     Subd. 2.  [BACKGROUND STUDIES CONDUCTED BY A COUNTY OR 
 47.27  PRIVATE AGENCY; FOSTER CARE AND FAMILY CHILD CARE.] (a) For a 
 47.28  background study conducted by a county or private agency for 
 47.29  child foster care, adult foster care, and family child care 
 47.30  homes, the commissioner shall review: 
 47.31     (1) information from the county agency's record of 
 47.32  substantiated maltreatment of adults and the maltreatment of 
 47.33  minors; 
 47.34     (2) information from juvenile courts as required in 
 47.35  subdivision 4 for individuals listed in section 245C.03, 
 47.36  subdivision 1, clauses (2), (5), and (6); and 
 48.1      (3) information from the Bureau of Criminal Apprehension; 
 48.2   and 
 48.3      (4) arrest and investigative records maintained by the 
 48.4   Bureau of Criminal Apprehension, county attorneys, county 
 48.5   sheriffs, courts, county agencies, local police, the National 
 48.6   Criminal Records Repository, and criminal records from other 
 48.7   states. 
 48.8      (b) If the individual has resided in the county for less 
 48.9   than five years, the study shall include the records specified 
 48.10  under paragraph (a) for the previous county or counties of 
 48.11  residence for the past five years. 
 48.12     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 48.13  following final enactment. 
 48.14     Sec. 46.  Minnesota Statutes 2003 Supplement, section 
 48.15  245C.08, subdivision 3, is amended to read: 
 48.16     Subd. 3.  [ARREST AND INVESTIGATIVE INFORMATION.] (a) For 
 48.17  any background study completed under this section, if the 
 48.18  commissioner has reasonable cause to believe the information is 
 48.19  pertinent to the disqualification of an individual listed in 
 48.20  section 245C.03, subdivisions 1 and 2, the commissioner also may 
 48.21  review arrest and investigative information from: 
 48.22     (1) the Bureau of Criminal Apprehension; 
 48.23     (2) the commissioner of health; 
 48.24     (3) a county attorney; 
 48.25     (4) a county sheriff; 
 48.26     (5) a county agency; 
 48.27     (6) a local chief of police; 
 48.28     (7) other states; 
 48.29     (8) the courts; or 
 48.30     (9) the Federal Bureau of Investigation. 
 48.31     (b) The commissioner is not required to conduct more than 
 48.32  one review of a subject's records from the Federal Bureau of 
 48.33  Investigation if a review of the subject's criminal history with 
 48.34  the Federal Bureau of Investigation has already been completed 
 48.35  by the commissioner and there has been no break in the subject's 
 48.36  affiliation with the license holder who initiated the background 
 49.1   study. 
 49.2      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 49.3   following final enactment. 
 49.4      Sec. 47.  Minnesota Statutes 2003 Supplement, section 
 49.5   245C.08, subdivision 4, is amended to read: 
 49.6      Subd. 4.  [JUVENILE COURT RECORDS.] (a) The commissioner 
 49.7   shall review records from the juvenile courts for an individual 
 49.8   studied under section 245C.03, subdivision 1, clauses (2) and 
 49.9   (5). 
 49.10     (b) For individuals studied under section 245C.03, 
 49.11  subdivision 1, clauses (1), (3), (4), and (6), and subdivision 
 49.12  2, who are ages 13 to 17, the commissioner shall review records 
 49.13  from the juvenile courts when the commissioner has reasonable 
 49.14  cause. 
 49.15     (c) The juvenile courts shall help with the study by giving 
 49.16  the commissioner existing juvenile court records on individuals 
 49.17  described in section 245C.03, subdivision 1, clauses (2), (5), 
 49.18  and (6), relating to delinquency proceedings held within either 
 49.19  the five years immediately preceding the background study or the 
 49.20  five years immediately preceding the individual's 18th birthday, 
 49.21  whichever time period is longer. 
 49.22     (d) For purposes of this chapter, a finding that a 
 49.23  delinquency petition is proven in juvenile court shall be 
 49.24  considered a conviction in state district court. 
 49.25     (e) The commissioner shall destroy juvenile court records 
 49.26  obtained under this subdivision when the subject of the records 
 49.27  reaches age 23. 
 49.28     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 49.29  following final enactment. 
 49.30     Sec. 48.  Minnesota Statutes 2003 Supplement, section 
 49.31  245C.09, subdivision 1, is amended to read: 
 49.32     Subdivision 1.  [DISQUALIFICATION; LICENSING ACTION.] An 
 49.33  applicant's, license holder's, or registrant's other entity's 
 49.34  failure or refusal to cooperate with the commissioner is 
 49.35  reasonable cause to disqualify a subject, deny a license 
 49.36  application, or immediately suspend or revoke a license or 
 50.1   registration. 
 50.2      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 50.3   following final enactment. 
 50.4      Sec. 49.  Minnesota Statutes 2003 Supplement, section 
 50.5   245C.13, subdivision 1, is amended to read: 
 50.6      Subdivision 1.  [TIMING.] Upon receipt of the background 
 50.7   study forms from an applicant, license holder, registrant, 
 50.8   agency, organization, program, or other entity as provided in 
 50.9   this chapter required to initiate a background study under 
 50.10  section 245C.04, the commissioner shall complete the background 
 50.11  study and provide the notice required under section 245C.17, 
 50.12  subdivision 1, within 15 working days. 
 50.13     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 50.14  following final enactment. 
 50.15     Sec. 50.  Minnesota Statutes 2003 Supplement, section 
 50.16  245C.14, subdivision 1, is amended to read: 
 50.17     Subdivision 1.  [DISQUALIFICATION FROM DIRECT CONTACT.] (a) 
 50.18  The commissioner shall disqualify an individual who is the 
 50.19  subject of a background study from any position allowing direct 
 50.20  contact with persons receiving services from the license holder 
 50.21  or entity identified in section 245C.03, upon receipt of 
 50.22  information showing, or when a background study completed under 
 50.23  this chapter shows any of the following: 
 50.24     (1) a conviction of or admission to one or more crimes 
 50.25  listed in section 245C.15, regardless of whether the conviction 
 50.26  or admission is a felony, gross misdemeanor, or misdemeanor 
 50.27  level crime; 
 50.28     (2) a preponderance of the evidence indicates the 
 50.29  individual has committed an act or acts that meet the definition 
 50.30  of any of the crimes listed in section 245C.15, regardless of 
 50.31  whether the preponderance of the evidence is for a felony, gross 
 50.32  misdemeanor, or misdemeanor level crime; or 
 50.33     (3) an investigation results in an administrative 
 50.34  determination listed under section 245C.15, subdivision 4, 
 50.35  paragraph (b). 
 50.36     (b) No individual who is disqualified following a 
 51.1   background study under section 245C.03, subdivisions 1 and 2, 
 51.2   may be retained in a position involving direct contact with 
 51.3   persons served by a program or entity identified in section 
 51.4   245C.03, unless the commissioner has provided written notice 
 51.5   under section 245C.17 stating that: 
 51.6      (1) the individual may remain in direct contact during the 
 51.7   period in which the individual may request reconsideration as 
 51.8   provided in section 245C.21, subdivision 2; 
 51.9      (2) the commissioner has set aside the individual's 
 51.10  disqualification for that program or entity identified in 
 51.11  section 245C.03, as provided in section 245C.22, subdivision 4; 
 51.12  or 
 51.13     (3) the license holder has been granted a variance for the 
 51.14  disqualified individual under section 245C.30. 
 51.15     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 51.16  following final enactment. 
 51.17     Sec. 51.  Minnesota Statutes 2003 Supplement, section 
 51.18  245C.15, subdivision 2, is amended to read: 
 51.19     Subd. 2.  [15-YEAR DISQUALIFICATION.] (a) An individual is 
 51.20  disqualified under section 245C.14 if:  (1) less than 15 years 
 51.21  have passed since the discharge of the sentence imposed for the 
 51.22  offense; and (2) the individual has received a felony conviction 
 51.23  for a violation of any of the following offenses:  sections 
 51.24  260C.301 (grounds for termination of parental rights); 609.165 
 51.25  (felon ineligible to possess firearm); 609.21 (criminal 
 51.26  vehicular homicide and injury); 609.215 (suicide); 609.223 or 
 51.27  609.2231 (assault in the third or fourth degree); repeat 
 51.28  offenses under 609.224 (assault in the fifth degree); 609.2325 
 51.29  (criminal abuse of a vulnerable adult); 609.2335 (financial 
 51.30  exploitation of a vulnerable adult); 609.235 (use of drugs to 
 51.31  injure or facilitate crime); 609.24 (simple robbery); 609.255 
 51.32  (false imprisonment); 609.2664 (manslaughter of an unborn child 
 51.33  in the first degree); 609.2665 (manslaughter of an unborn child 
 51.34  in the second degree); 609.267 (assault of an unborn child in 
 51.35  the first degree); 609.2671 (assault of an unborn child in the 
 51.36  second degree); 609.268 (injury or death of an unborn child in 
 52.1   the commission of a crime); 609.27 (coercion); 609.275 (attempt 
 52.2   to coerce); repeat offenses under 609.3451 (criminal sexual 
 52.3   conduct in the fifth degree); 609.498, subdivision 1 or 1b 
 52.4   (aggravated first degree or first degree tampering with a 
 52.5   witness); 609.52 (theft); 609.521 (possession of shoplifting 
 52.6   gear); 609.562 (arson in the second degree); 609.563 (arson in 
 52.7   the third degree); 609.582 (burglary); 609.625 (aggravated 
 52.8   forgery); 609.63 (forgery); 609.631 (check forgery; offering a 
 52.9   forged check); 609.635 (obtaining signature by false pretense); 
 52.10  609.66 (dangerous weapons); 609.67 (machine guns and 
 52.11  short-barreled shotguns); 609.687 (adulteration); 609.71 (riot); 
 52.12  609.713 (terroristic threats); repeat offenses under 617.23 
 52.13  (indecent exposure; penalties); repeat offenses under 617.241 
 52.14  (obscene materials and performances; distribution and exhibition 
 52.15  prohibited; penalty); chapter 152 (drugs; controlled substance); 
 52.16  or a felony level conviction involving alcohol or drug use. 
 52.17     (b) An individual is disqualified under section 245C.14 if 
 52.18  less than 15 years has passed since the individual's attempt or 
 52.19  conspiracy to commit any of the offenses listed in paragraph 
 52.20  (a), as each of these offenses is defined in Minnesota Statutes. 
 52.21     (c) An individual is disqualified under section 245C.14 if 
 52.22  less than 15 years has passed since the discharge of the 
 52.23  sentence imposed for an offense in any other state or country, 
 52.24  the elements of which are substantially similar to the elements 
 52.25  of the offenses listed in paragraph (a). 
 52.26     (d) If the individual studied is convicted of one of the 
 52.27  felonies listed in paragraph (a), but the sentence is a gross 
 52.28  misdemeanor or misdemeanor disposition, the individual is 
 52.29  disqualified but the disqualification lookback period for the 
 52.30  conviction is the period applicable to the gross misdemeanor or 
 52.31  misdemeanor disposition. 
 52.32     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 52.33  following final enactment. 
 52.34     Sec. 52.  Minnesota Statutes 2003 Supplement, section 
 52.35  245C.15, subdivision 3, is amended to read: 
 52.36     Subd. 3.  [TEN-YEAR DISQUALIFICATION.] (a) An individual is 
 53.1   disqualified under section 245C.14 if:  (1) less than ten years 
 53.2   have passed since the discharge of the sentence imposed for the 
 53.3   offense; and (2) the individual has received a gross misdemeanor 
 53.4   conviction for a violation of any of the following offenses:  
 53.5   sections 609.224 (assault in the fifth degree); 609.224, 
 53.6   subdivision 2, paragraph (c) (assault in the fifth degree by a 
 53.7   caregiver against a vulnerable adult); 609.2242 and 609.2243 
 53.8   (domestic assault); 609.23 (mistreatment of persons confined); 
 53.9   609.231 (mistreatment of residents or patients); 609.2325 
 53.10  (criminal abuse of a vulnerable adult); 609.233 (criminal 
 53.11  neglect of a vulnerable adult); 609.2335 (financial exploitation 
 53.12  of a vulnerable adult); 609.234 (failure to report maltreatment 
 53.13  of a vulnerable adult); 609.265 (abduction); 609.275 (attempt to 
 53.14  coerce); 609.324, subdivision 1a (other prohibited acts; minor 
 53.15  engaged in prostitution); 609.33 (disorderly house); 609.3451 
 53.16  (criminal sexual conduct in the fifth degree); 609.377 
 53.17  (malicious punishment of a child); 609.378 (neglect or 
 53.18  endangerment of a child); 609.52 (theft); 609.582 (burglary); 
 53.19  609.631 (check forgery; offering a forged check); 609.66 
 53.20  (dangerous weapons); 609.71 (riot); 609.72, subdivision 3 
 53.21  (disorderly conduct against a vulnerable adult); repeat offenses 
 53.22  under 609.746 (interference with privacy); 609.749, subdivision 
 53.23  2 (harassment; stalking); repeat offenses under 617.23 (indecent 
 53.24  exposure); 617.241 (obscene materials and performances); 617.243 
 53.25  (indecent literature, distribution); 617.293 (harmful materials; 
 53.26  dissemination and display to minors prohibited); or violation of 
 53.27  an order for protection under section 518B.01, subdivision 14. 
 53.28     (b) An individual is disqualified under section 245C.14 if 
 53.29  less than ten years has passed since the individual's attempt or 
 53.30  conspiracy to commit any of the offenses listed in paragraph 
 53.31  (a), as each of these offenses is defined in Minnesota Statutes. 
 53.32     (c) An individual is disqualified under section 245C.14 if 
 53.33  less than ten years has passed since the discharge of the 
 53.34  sentence imposed for an offense in any other state or country, 
 53.35  the elements of which are substantially similar to the elements 
 53.36  of any of the offenses listed in paragraph (a). 
 54.1      (d) If the defendant is convicted of one of the gross 
 54.2   misdemeanors listed in paragraph (a), but the sentence is a 
 54.3   misdemeanor disposition, the individual is disqualified but the 
 54.4   disqualification lookback period for the conviction is the 
 54.5   period applicable to misdemeanors. 
 54.6      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 54.7   following final enactment. 
 54.8      Sec. 53.  Minnesota Statutes 2003 Supplement, section 
 54.9   245C.15, subdivision 4, is amended to read: 
 54.10     Subd. 4.  [SEVEN-YEAR DISQUALIFICATION.] (a) An individual 
 54.11  is disqualified under section 245C.14 if:  (1) less than seven 
 54.12  years has passed since the discharge of the sentence imposed for 
 54.13  the offense; and (2) the individual has received a misdemeanor 
 54.14  conviction for a violation of any of the following offenses:  
 54.15  sections 609.224 (assault in the fifth degree); 609.2242 
 54.16  (domestic assault); 609.2335 (financial exploitation of a 
 54.17  vulnerable adult); 609.234 (failure to report maltreatment of a 
 54.18  vulnerable adult); 609.2672 (assault of an unborn child in the 
 54.19  third degree); 609.27 (coercion); violation of an order for 
 54.20  protection under 609.3232 (protective order authorized; 
 54.21  procedures; penalties); 609.52 (theft); 609.66 (dangerous 
 54.22  weapons); 609.665 (spring guns); 609.746 (interference with 
 54.23  privacy); 609.79 (obscene or harassing phone calls); 609.795 
 54.24  (letter, telegram, or package; opening; harassment); 617.23 
 54.25  (indecent exposure; penalties); 617.293 (harmful materials; 
 54.26  dissemination and display to minors prohibited); or violation of 
 54.27  an order for protection under section 518B.01 (Domestic Abuse 
 54.28  Act). 
 54.29     (b) An individual is disqualified under section 245C.14 if 
 54.30  less than seven years has passed since a determination or 
 54.31  disposition of the individual's: 
 54.32     (1) failure to make required reports under section 626.556, 
 54.33  subdivision 3, or 626.557, subdivision 3, for incidents in 
 54.34  which:  (i) the final disposition under section 626.556 or 
 54.35  626.557 was substantiated maltreatment, and (ii) the 
 54.36  maltreatment was recurring or serious; or 
 55.1      (2) substantiated serious or recurring maltreatment of a 
 55.2   minor under section 626.556 or of, a vulnerable adult under 
 55.3   section 626.557, or serious or recurring maltreatment in any 
 55.4   other state, the elements of which are substantially similar to 
 55.5   the elements of maltreatment under section 626.556 or 626.557 
 55.6   for which:  (i) there is a preponderance of evidence that the 
 55.7   maltreatment occurred, and (ii) the subject was responsible for 
 55.8   the maltreatment. 
 55.9      (c) An individual is disqualified under section 245C.14 if 
 55.10  less than seven years has passed since the individual's attempt 
 55.11  or conspiracy to commit any of the offenses listed in paragraphs 
 55.12  (a) and (b), as each of these offenses is defined in Minnesota 
 55.13  Statutes. 
 55.14     (d) An individual is disqualified under section 245C.14 if 
 55.15  less than seven years has passed since the discharge of the 
 55.16  sentence imposed for an offense in any other state or country, 
 55.17  the elements of which are substantially similar to the elements 
 55.18  of any of the offenses listed in paragraphs (a) and (b). 
 55.19     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 55.20  following final enactment. 
 55.21     Sec. 54.  Minnesota Statutes 2003 Supplement, section 
 55.22  245C.16, subdivision 1, is amended to read: 
 55.23     Subdivision 1.  [DETERMINING IMMEDIATE RISK OF HARM.] (a) 
 55.24  If the commissioner determines that the individual studied has a 
 55.25  disqualifying characteristic, the commissioner shall review the 
 55.26  information immediately available and make a determination as to 
 55.27  the subject's immediate risk of harm to persons served by the 
 55.28  program where the individual studied will have direct contact. 
 55.29     (b) The commissioner shall consider all relevant 
 55.30  information available, including the following factors in 
 55.31  determining the immediate risk of harm: 
 55.32     (1) the recency of the disqualifying characteristic; 
 55.33     (2) the recency of discharge from probation for the crimes; 
 55.34     (3) the number of disqualifying characteristics; 
 55.35     (4) the intrusiveness or violence of the disqualifying 
 55.36  characteristic; 
 56.1      (5) the vulnerability of the victim involved in the 
 56.2   disqualifying characteristic; and 
 56.3      (6) the similarity of the victim to the persons served by 
 56.4   the program where the individual studied will have direct 
 56.5   contact; and 
 56.6      (7) whether the individual has a disqualification from a 
 56.7   previous background study that has not been set aside. 
 56.8      (c) This section does not apply when the subject of a 
 56.9   background study is regulated by a health-related licensing 
 56.10  board as defined in chapter 214, and the subject is determined 
 56.11  to be responsible for substantiated maltreatment under section 
 56.12  626.556 or 626.557. 
 56.13     (d) If the commissioner has reason to believe, based on 
 56.14  arrest information or an active maltreatment investigation, that 
 56.15  an individual poses an imminent risk of harm to persons 
 56.16  receiving services, the commissioner may order that the person 
 56.17  be continuously supervised or immediately removed pending the 
 56.18  conclusion of the maltreatment investigation or criminal 
 56.19  proceedings. 
 56.20     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 56.21  following final enactment. 
 56.22     Sec. 55.  Minnesota Statutes 2003 Supplement, section 
 56.23  245C.17, subdivision 1, is amended to read: 
 56.24     Subdivision 1.  [TIME FRAME FOR NOTICE OF STUDY RESULTS.] 
 56.25  (a) Within 15 working days after the commissioner's receipt of 
 56.26  the background study form, the commissioner shall notify the 
 56.27  individual who is the subject of the study in writing or by 
 56.28  electronic transmission of the results of the study or that more 
 56.29  time is needed to complete the study. 
 56.30     (b) Within 15 working days after the commissioner's receipt 
 56.31  of the background study form, the commissioner shall notify the 
 56.32  applicant, license holder, or registrant other entity as 
 56.33  provided in this chapter in writing or by electronic 
 56.34  transmission of the results of the study or that more time is 
 56.35  needed to complete the study. 
 56.36     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 57.1   following final enactment. 
 57.2      Sec. 56.  Minnesota Statutes 2003 Supplement, section 
 57.3   245C.17, subdivision 3, is amended to read: 
 57.4      Subd. 3.  [DISQUALIFICATION NOTICE SENT TO APPLICANT, 
 57.5   LICENSE HOLDER, OR REGISTRANT OTHER ENTITY.] (a) The 
 57.6   commissioner shall notify an applicant, license holder, 
 57.7   or registrant other entity as provided in this chapter who is 
 57.8   not the subject of the study: 
 57.9      (1) that the commissioner has found information that 
 57.10  disqualifies the individual studied from direct contact with, or 
 57.11  from access to, persons served by the program; and 
 57.12     (2) the commissioner's determination of the individual's 
 57.13  risk of harm under section 245C.16. 
 57.14     (b) If the commissioner determines under section 245C.16 
 57.15  that an individual studied poses an imminent risk of harm to 
 57.16  persons served by the program where the individual studied will 
 57.17  have direct contact, the commissioner shall order the license 
 57.18  holder to immediately remove the individual studied from direct 
 57.19  contact. 
 57.20     (c) If the commissioner determines under section 245C.16 
 57.21  that an individual studied poses a risk of harm that requires 
 57.22  continuous, direct supervision, the commissioner shall order the 
 57.23  applicant, license holder, or other entities as provided in this 
 57.24  chapter to: 
 57.25     (1) immediately remove the individual studied from direct 
 57.26  contact services; or 
 57.27     (2) assure that the individual studied is under continuous, 
 57.28  direct supervision when providing direct contact services during 
 57.29  the period in which the individual may request a reconsideration 
 57.30  of the disqualification under section 245C.21. 
 57.31     (d) If the commissioner determines under section 245C.16 
 57.32  that an individual studied does not pose a risk of harm that 
 57.33  requires continuous, direct supervision, the commissioner shall 
 57.34  send the license holder a notice that more time is needed to 
 57.35  complete the individual's background study. 
 57.36     (e) The commissioner shall not notify the applicant, 
 58.1   license holder, or registrant other entity as provided in this 
 58.2   chapter of the information contained in the subject's background 
 58.3   study unless: 
 58.4      (1) the basis for the disqualification is failure to 
 58.5   cooperate with the background study or substantiated 
 58.6   maltreatment under section 626.556 or 626.557; 
 58.7      (2) the Data Practices Act under chapter 13 provides for 
 58.8   release of the information; or 
 58.9      (3) the individual studied authorizes the release of the 
 58.10  information. 
 58.11     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 58.12  following final enactment. 
 58.13     Sec. 57.  Minnesota Statutes 2003 Supplement, section 
 58.14  245C.18, is amended to read: 
 58.15     245C.18 [OBLIGATION TO REMOVE DISQUALIFIED INDIVIDUAL FROM 
 58.16  DIRECT CONTACT.] 
 58.17     Upon receipt of notice from the commissioner, the license 
 58.18  holder must remove a disqualified individual from direct contact 
 58.19  with persons served by the licensed program if:  
 58.20     (1) the individual does not request reconsideration under 
 58.21  section 245C.21 within the prescribed time, or if; 
 58.22     (2) the individual submits a timely request for 
 58.23  reconsideration, and the commissioner does not set aside the 
 58.24  disqualification under section 245C.22, subdivision 4., and the 
 58.25  individual does not submit a timely request for a hearing under 
 58.26  sections 245C.27 and 256.045, or 245C.28 and chapter 14; or 
 58.27     (3) the individual submits a timely request for a hearing 
 58.28  under sections 245C.27 and 256.045, or 245C.28 and chapter 14, 
 58.29  and the commissioner does not set aside or rescind the 
 58.30  disqualification under section 245A.08, subdivision 5, or 
 58.31  256.045. 
 58.32     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 58.33  following final enactment. 
 58.34     Sec. 58.  Minnesota Statutes 2003 Supplement, section 
 58.35  245C.20, is amended to read: 
 58.36     245C.20 [LICENSE HOLDER RECORD KEEPING.] 
 59.1      A licensed program shall document the date the program 
 59.2   initiates a background study under this chapter in the program's 
 59.3   personnel files.  When a background study is completed under 
 59.4   this chapter, a licensed program shall maintain a notice that 
 59.5   the study was undertaken and completed in the program's 
 59.6   personnel files.  If a licensed program has not received a 
 59.7   response from the commissioner under section 245C.17 within 45 
 59.8   days of initiation of the background study request, the licensed 
 59.9   program must contact the commissioner to inquire about the 
 59.10  status of the study. 
 59.11     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 59.12  following final enactment. 
 59.13     Sec. 59.  Minnesota Statutes 2003 Supplement, section 
 59.14  245C.21, subdivision 3, is amended to read: 
 59.15     Subd. 3.  [INFORMATION DISQUALIFIED INDIVIDUALS MUST 
 59.16  PROVIDE WHEN REQUESTING RECONSIDERATION.] The disqualified 
 59.17  individual requesting reconsideration must submit information 
 59.18  showing that: 
 59.19     (1) the information the commissioner relied upon in 
 59.20  determining the underlying conduct that gave rise to the 
 59.21  disqualification is incorrect; 
 59.22     (2) for maltreatment, the information the commissioner 
 59.23  relied upon in determining that maltreatment was serious or 
 59.24  recurring is incorrect; or 
 59.25     (3) the subject of the study does not pose a risk of harm 
 59.26  to any person served by the applicant, license holder, or 
 59.27  registrant other entities as provided in this chapter, by 
 59.28  addressing the information required under section 245C.22, 
 59.29  subdivision 4. 
 59.30     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 59.31  following final enactment. 
 59.32     Sec. 60.  Minnesota Statutes 2003 Supplement, section 
 59.33  245C.21, is amended by adding a subdivision to read: 
 59.34     Subd. 4.  [NOTICE OF REQUEST FOR RECONSIDERATION.] Upon 
 59.35  request, the commissioner may inform the applicant, license 
 59.36  holder, or other entities as provided in this chapter who 
 60.1   received a notice of the individual's disqualification under 
 60.2   section 245C.17, subdivision 3, or has the consent of the 
 60.3   disqualified individual, whether the disqualified individual has 
 60.4   requested reconsideration. 
 60.5      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 60.6   following final enactment. 
 60.7      Sec. 61.  Minnesota Statutes 2003 Supplement, section 
 60.8   245C.22, subdivision 3, is amended to read: 
 60.9      Subd. 3.  [PREEMINENT WEIGHT GIVEN TO SAFETY OF PERSONS 
 60.10  BEING SERVED.] In reviewing a request for reconsideration of a 
 60.11  disqualification, the commissioner shall give preeminent weight 
 60.12  to the safety of each person served by the license holder, 
 60.13  applicant, or registrant other entities as provided in this 
 60.14  chapter over the interests of the license holder, applicant, 
 60.15  or registrant other entity as provided in this chapter, and any 
 60.16  single factor under subdivision 4, paragraph (b), may be 
 60.17  determinative of the commissioner's decision whether to set 
 60.18  aside the individual's disqualification. 
 60.19     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 60.20  following final enactment. 
 60.21     Sec. 62.  Minnesota Statutes 2003 Supplement, section 
 60.22  245C.22, subdivision 4, is amended to read: 
 60.23     Subd. 4.  [RISK OF HARM; SET ASIDE.] (a) The commissioner 
 60.24  may set aside the disqualification if the commissioner finds 
 60.25  that the individual has submitted sufficient information to 
 60.26  demonstrate that the individual does not pose a risk of harm to 
 60.27  any person served by the applicant, license holder, 
 60.28  or registrant other entities as provided in this chapter. 
 60.29     (b) In determining if whether the individual has met the 
 60.30  burden of proof by demonstrating the individual does not pose a 
 60.31  risk of harm, the commissioner shall consider: 
 60.32     (1) the nature, severity, and consequences of the event or 
 60.33  events that led to the disqualification; 
 60.34     (2) whether there is more than one disqualifying event; 
 60.35     (3) the age and vulnerability of the victim at the time of 
 60.36  the event; 
 61.1      (4) the harm suffered by the victim; 
 61.2      (5) the similarity between the victim and persons served by 
 61.3   the program; 
 61.4      (6) the time elapsed without a repeat of the same or 
 61.5   similar event; 
 61.6      (7) documentation of successful completion by the 
 61.7   individual studied of training or rehabilitation pertinent to 
 61.8   the event; and 
 61.9      (8) any other information relevant to reconsideration. 
 61.10     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 61.11  following final enactment. 
 61.12     Sec. 63.  Minnesota Statutes 2003 Supplement, section 
 61.13  245C.22, subdivision 5, is amended to read: 
 61.14     Subd. 5.  [SCOPE OF SET ASIDE.] If the commissioner sets 
 61.15  aside a disqualification under this section, the disqualified 
 61.16  individual remains disqualified, but may hold a license and have 
 61.17  direct contact with or access to persons receiving services.  
 61.18  The commissioner's set aside of a disqualification is limited 
 61.19  solely to the licensed program, applicant, or agency specified 
 61.20  in the set aside notice under section 245C.23, unless otherwise 
 61.21  specified in the notice. 
 61.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 61.23  following final enactment. 
 61.24     Sec. 64.  Minnesota Statutes 2003 Supplement, section 
 61.25  245C.22, subdivision 6, is amended to read: 
 61.26     Subd. 6.  [RECISION OF SET ASIDE.] The commissioner may 
 61.27  rescind a previous set aside of a disqualification under this 
 61.28  section based on new information that indicates the individual 
 61.29  may pose a risk of harm to persons served by the applicant, 
 61.30  license holder, or registrant other entities as provided in this 
 61.31  chapter.  If the commissioner rescinds a set aside of a 
 61.32  disqualification under this paragraph subdivision, the appeal 
 61.33  rights under sections 245C.21 and, 245C.27, subdivision 1, and 
 61.34  245C.28, subdivision 3, shall apply. 
 61.35     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 61.36  following final enactment. 
 62.1      Sec. 65.  Minnesota Statutes 2003 Supplement, section 
 62.2   245C.23, subdivision 1, is amended to read: 
 62.3      Subdivision 1.  [COMMISSIONER'S NOTICE OF DISQUALIFICATION 
 62.4   THAT IS SET ASIDE.] (a) Except as provided under paragraph (c), 
 62.5   if the commissioner sets aside a disqualification, the 
 62.6   commissioner shall notify the applicant or license holder in 
 62.7   writing or by electronic transmission of the decision.  In the 
 62.8   notice from the commissioner that a disqualification has been 
 62.9   set aside, the commissioner must inform the license holder that 
 62.10  information about the nature of the disqualification and which 
 62.11  factors under section 245C.22, subdivision 4, were the basis of 
 62.12  the decision to set aside the disqualification are available to 
 62.13  the license holder upon request without the consent of the 
 62.14  background study subject. 
 62.15     (b) With the written consent of the background study 
 62.16  subject, the commissioner may release to the license holder 
 62.17  copies of all information related to the background study 
 62.18  subject's disqualification and the commissioner's decision to 
 62.19  set aside the disqualification as specified in the written 
 62.20  consent. 
 62.21     (c) If the individual studied submits a timely request for 
 62.22  reconsideration under section 245C.21 and the license holder was 
 62.23  previously sent a notice under section 245C.17, subdivision 3, 
 62.24  paragraph (d), and if the commissioner sets aside the 
 62.25  disqualification for that license holder under section 245C.22, 
 62.26  the commissioner shall send the license holder the same 
 62.27  notification received by license holders in cases where the 
 62.28  individual studied has no disqualifying characteristic. 
 62.29     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 62.30  following final enactment. 
 62.31     Sec. 66.  Minnesota Statutes 2003 Supplement, section 
 62.32  245C.23, subdivision 2, is amended to read: 
 62.33     Subd. 2.  [COMMISSIONER'S NOTICE OF DISQUALIFICATION THAT 
 62.34  IS NOT SET ASIDE.] (a) The commissioner shall notify the license 
 62.35  holder of the disqualification and order the license holder to 
 62.36  immediately remove the individual from any position allowing 
 63.1   direct contact with persons receiving services from the license 
 63.2   holder if:  
 63.3      (1) the individual studied does not submit a timely request 
 63.4   for reconsideration under section 245C.21, or; 
 63.5      (2) the individual submits a timely request for 
 63.6   reconsideration, but the commissioner does not set aside the 
 63.7   disqualification for that license holder under section 245C.22, 
 63.8   the commissioner shall notify the license holder of the 
 63.9   disqualification and order the license holder to immediately 
 63.10  remove the individual from any position allowing direct contact 
 63.11  with persons receiving services from the license holder.; 
 63.12     (3) an individual who has a right to request a hearing 
 63.13  under sections 245C.27 and 256.045, or 245C.28 and chapter 14 
 63.14  for a disqualification that has not been set aside, does not 
 63.15  request a hearing within the specified time; or 
 63.16     (4) an individual submitted a timely request for a hearing 
 63.17  under sections 245C.27 and 256.045, or 245C.28 and chapter 14, 
 63.18  but the commissioner does not set aside the disqualification 
 63.19  under section 245A.08, subdivision 5, or 256.045. 
 63.20     (b) If the commissioner does not set aside the 
 63.21  disqualification under section 245C.22, and the license holder 
 63.22  was previously ordered under section 245C.17 to immediately 
 63.23  remove the disqualified individual from direct contact with 
 63.24  persons receiving services or to ensure that the individual is 
 63.25  under continuous, direct supervision when providing direct 
 63.26  contact services, the order remains in effect pending the 
 63.27  outcome of a hearing under sections 245C.27 and 256.045, or 
 63.28  245C.28 and chapter 14. 
 63.29     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 63.30  following final enactment. 
 63.31     Sec. 67.  Minnesota Statutes 2003 Supplement, section 
 63.32  245C.25, is amended to read: 
 63.33     245C.25 [CONSOLIDATED RECONSIDERATION OF MALTREATMENT 
 63.34  DETERMINATION AND DISQUALIFICATION.] 
 63.35     (a) If an individual is disqualified on the basis of a 
 63.36  determination of maltreatment under section 626.556 or 626.557, 
 64.1   which was serious or recurring, and the individual requests 
 64.2   reconsideration of the maltreatment determination under section 
 64.3   626.556, subdivision 10i, or 626.557, subdivision 9d, and also 
 64.4   requests reconsideration of the disqualification under section 
 64.5   245C.21, the commissioner shall consolidate the reconsideration 
 64.6   of the maltreatment determination and the disqualification into 
 64.7   a single reconsideration. 
 64.8      (b) For maltreatment and disqualification determinations 
 64.9   made by county agencies, the county agency shall conduct the 
 64.10  consolidated reconsideration.  If the county agency has 
 64.11  disqualified an individual on multiple bases, one of which is a 
 64.12  county maltreatment determination for which the individual has a 
 64.13  right to request reconsideration, the county shall conduct the 
 64.14  reconsideration of all disqualifications. 
 64.15     (c) If the county has previously conducted a consolidated 
 64.16  reconsideration under paragraph (b) of a maltreatment 
 64.17  determination and a disqualification based on serious or 
 64.18  recurring maltreatment, and the county subsequently disqualifies 
 64.19  the individual based on that determination, the county shall 
 64.20  conduct the reconsideration of the subsequent disqualification.  
 64.21  The scope of the subsequent disqualification shall be limited to 
 64.22  whether the individual poses a risk of harm in accordance with 
 64.23  section 245C.22, subdivision 4. 
 64.24     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 64.25  following final enactment. 
 64.26     Sec. 68.  Minnesota Statutes 2003 Supplement, section 
 64.27  245C.26, is amended to read: 
 64.28     245C.26 [RECONSIDERATION OF A DISQUALIFICATION FOR AN 
 64.29  INDIVIDUAL LIVING IN A LICENSED HOME.] 
 64.30     In the case of any ground for disqualification under this 
 64.31  chapter, if the act was committed by an individual other than 
 64.32  the applicant, or license holder, or registrant residing in the 
 64.33  applicant's, or license holder's, or registrant's home, the 
 64.34  applicant, or license holder, or registrant may seek 
 64.35  reconsideration when the individual who committed the act no 
 64.36  longer resides in the home. 
 65.1      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 65.2   following final enactment. 
 65.3      Sec. 69.  Minnesota Statutes 2003 Supplement, section 
 65.4   245C.27, subdivision 1, is amended to read: 
 65.5      Subdivision 1.  [FAIR HEARING WHEN DISQUALIFICATION IS NOT 
 65.6   SET ASIDE.] (a) If the commissioner does not set aside or 
 65.7   rescind a disqualification of an individual under section 
 65.8   245C.22 who is disqualified on the basis of a preponderance of 
 65.9   evidence that the individual committed an act or acts that meet 
 65.10  the definition of any of the crimes listed in section 245C.15; 
 65.11  for a determination under section 626.556 or 626.557 of 
 65.12  substantiated maltreatment that was serious or recurring under 
 65.13  section 245C.15; or for failure to make required reports under 
 65.14  section 626.556, subdivision 3; or 626.557, subdivision 3, 
 65.15  pursuant to section 245C.15, subdivision 4, paragraph (b), 
 65.16  clause (1), the individual may request a fair hearing under 
 65.17  section 256.045, unless the disqualification is deemed 
 65.18  conclusive under section 245C.29. 
 65.19     (b) The fair hearing is the only administrative appeal of 
 65.20  the final agency determination for purposes of appeal by the 
 65.21  disqualified individual.  The disqualified individual does not 
 65.22  have the right to challenge the accuracy and completeness of 
 65.23  data under section 13.04. 
 65.24     (c) If the individual was disqualified based on a 
 65.25  conviction or admission to any crimes listed in section 245C.15, 
 65.26  subdivisions 1 to 4, the reconsideration decision under this 
 65.27  subdivision section 245C.22 is the final agency determination 
 65.28  for purposes of appeal by the disqualified individual and is not 
 65.29  subject to a hearing under section 256.045. 
 65.30     (d) This section subdivision does not apply to a public 
 65.31  employee's appeal of a disqualification under section 245C.28, 
 65.32  subdivision 3. 
 65.33     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 65.34  following final enactment. 
 65.35     Sec. 70.  Minnesota Statutes 2003 Supplement, section 
 65.36  245C.27, subdivision 2, is amended to read: 
 66.1      Subd. 2.  [CONSOLIDATED FAIR HEARING FOR MALTREATMENT 
 66.2   DETERMINATION AND DISQUALIFICATION NOT SET ASIDE.] (a) If an 
 66.3   individual who is disqualified on the bases of serious or 
 66.4   recurring maltreatment requests a fair hearing on the 
 66.5   maltreatment determination under section 626.556, subdivision 
 66.6   10i, or 626.557, subdivision 9d, and requests a fair hearing 
 66.7   under this section on the disqualification, which has not been 
 66.8   set aside or rescinded, the scope of the fair hearing under 
 66.9   section 256.045 shall include the maltreatment determination and 
 66.10  the disqualification. 
 66.11     (b) A fair hearing is the only administrative appeal of the 
 66.12  final agency determination.  The disqualified individual does 
 66.13  not have the right to challenge the accuracy and completeness of 
 66.14  data under section 13.04. 
 66.15     (c) This section subdivision does not apply to a public 
 66.16  employee's appeal of a disqualification under section 245C.28, 
 66.17  subdivision 3. 
 66.18     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 66.19  following final enactment. 
 66.20     Sec. 71.  Minnesota Statutes 2003 Supplement, section 
 66.21  245C.28, subdivision 1, is amended to read: 
 66.22     Subdivision 1.  [LICENSE HOLDER.] (a) If a maltreatment 
 66.23  determination or a disqualification for which reconsideration 
 66.24  was requested and which was not set aside or rescinded is the 
 66.25  basis for a denial of a license under section 245A.05 or a 
 66.26  licensing sanction under section 245A.07, the license holder has 
 66.27  the right to a contested case hearing under chapter 14 and 
 66.28  Minnesota Rules, parts 1400.8505 to 1400.8612. 
 66.29     (b) The license holder must submit the appeal in accordance 
 66.30  with section 245A.05 or 245A.07, subdivision 3.  As provided 
 66.31  under section 245A.08, subdivision 2a, the scope of the 
 66.32  consolidated contested case hearing must include the 
 66.33  disqualification and the licensing sanction or denial of a 
 66.34  license. 
 66.35     (c) If the disqualification was based on a determination of 
 66.36  substantiated serious or recurring maltreatment under section 
 67.1   626.556 or 626.557, the appeal must be submitted in accordance 
 67.2   with sections 245A.07, subdivision 3, and 626.556, subdivision 
 67.3   10i, or 626.557, subdivision 9d.  As provided for under section 
 67.4   245A.08, subdivision 2a, the scope of the contested case hearing 
 67.5   must include the maltreatment determination, the 
 67.6   disqualification, and the licensing sanction or denial of a 
 67.7   license.  In such cases, a fair hearing must not be conducted 
 67.8   under section 256.045. 
 67.9      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 67.10  following final enactment. 
 67.11     Sec. 72.  Minnesota Statutes 2003 Supplement, section 
 67.12  245C.28, subdivision 2, is amended to read: 
 67.13     Subd. 2.  [INDIVIDUAL OTHER THAN LICENSE HOLDER.] If the 
 67.14  basis for the commissioner's denial of a license under section 
 67.15  245A.05 or a licensing sanction under section 245A.07 is a 
 67.16  maltreatment determination or disqualification that was not set 
 67.17  aside or rescinded under section 245C.22, and the disqualified 
 67.18  subject is an individual other than the license holder and upon 
 67.19  whom a background study must be conducted under section 245C.03, 
 67.20  the hearing of all parties may be consolidated into a single 
 67.21  contested case hearing upon consent of all parties and the 
 67.22  administrative law judge. 
 67.23     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 67.24  following final enactment. 
 67.25     Sec. 73.  Minnesota Statutes 2003 Supplement, section 
 67.26  245C.28, subdivision 3, is amended to read: 
 67.27     Subd. 3.  [EMPLOYEES OF PUBLIC EMPLOYER.] (a) If the 
 67.28  commissioner does not set aside the disqualification of an 
 67.29  individual who is an employee of an employer, as defined in 
 67.30  section 179A.03, subdivision 15, the individual may request a 
 67.31  contested case hearing under chapter 14.  The request for a 
 67.32  contested case hearing must be made in writing and must be 
 67.33  postmarked and mailed within 30 calendar days after the employee 
 67.34  receives notice that the disqualification has not been set aside.
 67.35     (b) If the commissioner does not set aside or rescind a 
 67.36  disqualification that is based on a maltreatment determination, 
 68.1   the scope of the contested case hearing must include the 
 68.2   maltreatment determination and the disqualification.  In such 
 68.3   cases, a fair hearing must not be conducted under section 
 68.4   256.045. 
 68.5      (c) Rules adopted under this chapter may not preclude an 
 68.6   employee in a contested case hearing for a disqualification from 
 68.7   submitting evidence concerning information gathered under this 
 68.8   chapter. 
 68.9      (d) When a person has been disqualified from multiple 
 68.10  licensed programs and the disqualifications have not been set 
 68.11  aside under section 245C.22, if at least one of the 
 68.12  disqualifications entitles the person to a contested case 
 68.13  hearing under this subdivision, the scope of the contested case 
 68.14  hearing shall include all disqualifications from licensed 
 68.15  programs which were not set aside. 
 68.16     (e) In determining whether the disqualification should be 
 68.17  set aside, the administrative law judge shall consider all of 
 68.18  the characteristics that cause the individual to be 
 68.19  disqualified, including those characteristics that were not 
 68.20  subject to review under paragraph (b), in order to determine 
 68.21  whether the individual poses a risk of harm.  The administrative 
 68.22  law judge's recommendation and the commissioner's order to set 
 68.23  aside a disqualification that is the subject of the hearing 
 68.24  constitutes a determination that the individual does not pose a 
 68.25  risk of harm and that the individual may provide direct contact 
 68.26  services in the individual program specified in the set aside. 
 68.27     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 68.28  following final enactment. 
 68.29     Sec. 74.  Minnesota Statutes 2003 Supplement, section 
 68.30  245C.29, subdivision 2, is amended to read: 
 68.31     Subd. 2.  [CONCLUSIVE DISQUALIFICATION DETERMINATION.] (a) 
 68.32  Unless otherwise specified in statute, a determination that: 
 68.33     (1) the information the commissioner relied upon to 
 68.34  disqualify an individual under section 245C.14 was correct based 
 68.35  on serious or recurring maltreatment; 
 68.36     (2) a preponderance of the evidence shows that the 
 69.1   individual committed an act or acts that meet the definition of 
 69.2   any of the crimes listed in section 245C.15; or 
 69.3      (3) the individual failed to make required reports under 
 69.4   section 626.556, subdivision 3, or 626.557, subdivision 3, is 
 69.5   conclusive if: 
 69.6      (i) the commissioner has issued a final order in an appeal 
 69.7   of that determination under section 245A.08, subdivision 5, or 
 69.8   256.045, or a court has issued a final decision; 
 69.9      (ii) the individual did not request reconsideration of the 
 69.10  disqualification under section 245C.21; or 
 69.11     (iii) the individual did not request a hearing on the 
 69.12  disqualification under section 256.045 or chapter 14. 
 69.13     (b) When a licensing action under section 245A.05, 245A.06, 
 69.14  or 245A.07 is based on the disqualification of an individual in 
 69.15  connection with a license to provide family child care, foster 
 69.16  care for children in the provider's own home, or foster care 
 69.17  services for adults in the provider's own home, that 
 69.18  disqualification shall be conclusive for purposes of the 
 69.19  licensing action if a request for reconsideration was not 
 69.20  submitted within 30 calendar days of the individual's receipt of 
 69.21  the notice of disqualification. 
 69.22     (c) If a determination that the information relied upon to 
 69.23  disqualify an individual was correct and is conclusive under 
 69.24  this section, and the individual is subsequently disqualified 
 69.25  under section 245C.15, the individual has a right to request 
 69.26  reconsideration on the risk of harm under section 245C.21.  
 69.27  Subsequent determinations regarding the risk of harm shall be 
 69.28  made according to section 245C.22 and are not subject to another 
 69.29  hearing under section 256.045 or chapter 14. 
 69.30     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 69.31  following final enactment. 
 69.32     Sec. 75.  Minnesota Statutes 2002, section 252.28, 
 69.33  subdivision 1, is amended to read: 
 69.34     Subdivision 1.  [DETERMINATIONS; REDETERMINATIONS.] In 
 69.35  conjunction with the appropriate county boards, the commissioner 
 69.36  of human services shall determine, and shall redetermine at 
 70.1   least every four years, the need, anticipated growth or decline 
 70.2   in need until the next anticipated redetermination, location, 
 70.3   size, and program of public and private day training and 
 70.4   habilitation services for persons with mental retardation or 
 70.5   related conditions.  This subdivision does not apply to 
 70.6   semi-independent living services and residential-based 
 70.7   habilitation services provided to four or fewer persons at a 
 70.8   single site funded as home and community-based services.  A 
 70.9   determination of need shall not be required for a change in 
 70.10  ownership. 
 70.11     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 70.12  following final enactment. 
 70.13     Sec. 76.  Minnesota Statutes 2003 Supplement, section 
 70.14  256.045, subdivision 3, is amended to read: 
 70.15     Subd. 3.  [STATE AGENCY HEARINGS.] (a) State agency 
 70.16  hearings are available for the following:  (1) any person 
 70.17  applying for, receiving or having received public assistance, 
 70.18  medical care, or a program of social services granted by the 
 70.19  state agency or a county agency or the federal Food Stamp Act 
 70.20  whose application for assistance is denied, not acted upon with 
 70.21  reasonable promptness, or whose assistance is suspended, 
 70.22  reduced, terminated, or claimed to have been incorrectly paid; 
 70.23  (2) any patient or relative aggrieved by an order of the 
 70.24  commissioner under section 252.27; (3) a party aggrieved by a 
 70.25  ruling of a prepaid health plan; (4) except as provided under 
 70.26  chapter 245C, any individual or facility determined by a lead 
 70.27  agency to have maltreated a vulnerable adult under section 
 70.28  626.557 after they have exercised their right to administrative 
 70.29  reconsideration under section 626.557; (5) any person whose 
 70.30  claim for foster care payment according to a placement of the 
 70.31  child resulting from a child protection assessment under section 
 70.32  626.556 is denied or not acted upon with reasonable promptness, 
 70.33  regardless of funding source; (6) any person to whom a right of 
 70.34  appeal according to this section is given by other provision of 
 70.35  law; (7) an applicant aggrieved by an adverse decision to an 
 70.36  application for a hardship waiver under section 256B.15; (8) 
 71.1   except as provided under chapter 245A, an individual or facility 
 71.2   determined to have maltreated a minor under section 626.556, 
 71.3   after the individual or facility has exercised the right to 
 71.4   administrative reconsideration under section 626.556; or (9) 
 71.5   except as provided under chapter 245C, an individual 
 71.6   disqualified under sections 245C.14 and 245C.15, on the basis of 
 71.7   serious or recurring maltreatment; a preponderance of the 
 71.8   evidence that the individual has committed an act or acts that 
 71.9   meet the definition of any of the crimes listed in section 
 71.10  245C.15, subdivisions 1 to 4; or for failing to make reports 
 71.11  required under section 626.556, subdivision 3, or 626.557, 
 71.12  subdivision 3.  Hearings regarding a maltreatment determination 
 71.13  under clause (4) or (8) and a disqualification under this clause 
 71.14  in which the basis for a disqualification is serious or 
 71.15  recurring maltreatment, which has not been set aside or 
 71.16  rescinded under sections 245C.22 and 245C.23, shall be 
 71.17  consolidated into a single fair hearing.  In such cases, the 
 71.18  scope of review by the human services referee shall include both 
 71.19  the maltreatment determination and the disqualification.  The 
 71.20  failure to exercise the right to an administrative 
 71.21  reconsideration shall not be a bar to a hearing under this 
 71.22  section if federal law provides an individual the right to a 
 71.23  hearing to dispute a finding of maltreatment.  Individuals and 
 71.24  organizations specified in this section may contest the 
 71.25  specified action, decision, or final disposition before the 
 71.26  state agency by submitting a written request for a hearing to 
 71.27  the state agency within 30 days after receiving written notice 
 71.28  of the action, decision, or final disposition, or within 90 days 
 71.29  of such written notice if the applicant, recipient, patient, or 
 71.30  relative shows good cause why the request was not submitted 
 71.31  within the 30-day time limit. 
 71.32     The hearing for an individual or facility under clause (4), 
 71.33  (8), or (9) is the only administrative appeal to the final 
 71.34  agency determination specifically, including a challenge to the 
 71.35  accuracy and completeness of data under section 13.04.  Hearings 
 71.36  requested under clause (4) apply only to incidents of 
 72.1   maltreatment that occur on or after October 1, 1995.  Hearings 
 72.2   requested by nursing assistants in nursing homes alleged to have 
 72.3   maltreated a resident prior to October 1, 1995, shall be held as 
 72.4   a contested case proceeding under the provisions of chapter 14.  
 72.5   Hearings requested under clause (8) apply only to incidents of 
 72.6   maltreatment that occur on or after July 1, 1997.  A hearing for 
 72.7   an individual or facility under clause (8) is only available 
 72.8   when there is no juvenile court or adult criminal action 
 72.9   pending.  If such action is filed in either court while an 
 72.10  administrative review is pending, the administrative review must 
 72.11  be suspended until the judicial actions are completed.  If the 
 72.12  juvenile court action or criminal charge is dismissed or the 
 72.13  criminal action overturned, the matter may be considered in an 
 72.14  administrative hearing. 
 72.15     For purposes of this section, bargaining unit grievance 
 72.16  procedures are not an administrative appeal. 
 72.17     The scope of hearings involving claims to foster care 
 72.18  payments under clause (5) shall be limited to the issue of 
 72.19  whether the county is legally responsible for a child's 
 72.20  placement under court order or voluntary placement agreement 
 72.21  and, if so, the correct amount of foster care payment to be made 
 72.22  on the child's behalf and shall not include review of the 
 72.23  propriety of the county's child protection determination or 
 72.24  child placement decision. 
 72.25     (b) A vendor of medical care as defined in section 256B.02, 
 72.26  subdivision 7, or a vendor under contract with a county agency 
 72.27  to provide social services is not a party and may not request a 
 72.28  hearing under this section, except if assisting a recipient as 
 72.29  provided in subdivision 4. 
 72.30     (c) An applicant or recipient is not entitled to receive 
 72.31  social services beyond the services included in the amended 
 72.32  community social services plan. 
 72.33     (d) The commissioner may summarily affirm the county or 
 72.34  state agency's proposed action without a hearing when the sole 
 72.35  issue is an automatic change due to a change in state or federal 
 72.36  law. 
 73.1      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 73.2   following final enactment. 
 73.3      Sec. 77.  Minnesota Statutes 2003 Supplement, section 
 73.4   256.045, subdivision 3b, is amended to read: 
 73.5      Subd. 3b.  [STANDARD OF EVIDENCE FOR MALTREATMENT AND 
 73.6   DISQUALIFICATION HEARINGS.] (a) The state human services referee 
 73.7   shall determine that maltreatment has occurred if a 
 73.8   preponderance of evidence exists to support the final 
 73.9   disposition under sections 626.556 and 626.557.  For purposes of 
 73.10  hearings regarding disqualification, the state human services 
 73.11  referee shall affirm the proposed disqualification in an appeal 
 73.12  under subdivision 3, paragraph (a), clause (9), if a 
 73.13  preponderance of the evidence shows the individual has:  
 73.14     (1) committed maltreatment under section 626.556 or 
 73.15  626.557, which is serious or recurring; 
 73.16     (2) committed an act or acts meeting the definition of any 
 73.17  of the crimes listed in section 245C.15, subdivisions 1 to 4; or 
 73.18     (3) failed to make required reports under section 626.556 
 73.19  or 626.557, for incidents in which the final disposition under 
 73.20  section 626.556 or 626.557 was substantiated maltreatment that 
 73.21  was serious or recurring.  
 73.22     (b) If the disqualification is affirmed, the state human 
 73.23  services referee shall determine whether the individual poses a 
 73.24  risk of harm in accordance with the requirements of section 
 73.25  245C.16., and whether the disqualification should be set aside 
 73.26  or not set aside.  In determining whether the disqualification 
 73.27  should be set aside, the human services referee shall consider 
 73.28  all of the characteristics that cause the individual to be 
 73.29  disqualified, including those characteristics that were not 
 73.30  subject to review under paragraph (a), in order to determine 
 73.31  whether the individual poses a risk of harm.  A decision to set 
 73.32  aside a disqualification that is the subject of the hearing 
 73.33  constitutes a determination that the individual does not pose a 
 73.34  risk of harm and that the individual may provide direct contact 
 73.35  services in the individual program specified in the set aside.  
 73.36  If a determination that the information relied upon to 
 74.1   disqualify an individual was correct and is conclusive under 
 74.2   section 245C.29, and the individual is subsequently disqualified 
 74.3   under section 245C.14, the individual has a right to again 
 74.4   request reconsideration on the risk of harm under section 
 74.5   245C.21.  Subsequent determinations regarding risk of harm are 
 74.6   not subject to another hearing under this section. 
 74.7      (c) The state human services referee shall recommend an 
 74.8   order to the commissioner of health, education, or human 
 74.9   services, as applicable, who shall issue a final order.  The 
 74.10  commissioner shall affirm, reverse, or modify the final 
 74.11  disposition.  Any order of the commissioner issued in accordance 
 74.12  with this subdivision is conclusive upon the parties unless 
 74.13  appeal is taken in the manner provided in subdivision 7.  In any 
 74.14  licensing appeal under chapters 245A and 245C and sections 
 74.15  144.50 to 144.58 and 144A.02 to 144A.46, the commissioner's 
 74.16  determination as to maltreatment is conclusive, as provided 
 74.17  under section 245C.29. 
 74.18     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 74.19  following final enactment. 
 74.20     Sec. 78.  Minnesota Statutes 2003 Supplement, section 
 74.21  626.556, subdivision 10, is amended to read: 
 74.22     Subd. 10.  [DUTIES OF LOCAL WELFARE AGENCY AND LOCAL LAW 
 74.23  ENFORCEMENT AGENCY UPON RECEIPT OF A REPORT.] (a) If the report 
 74.24  alleges neglect, physical abuse, or sexual abuse by a parent, 
 74.25  guardian, or individual functioning within the family unit as a 
 74.26  person responsible for the child's care, the local welfare 
 74.27  agency shall immediately conduct an assessment including 
 74.28  gathering information on the existence of substance abuse and 
 74.29  offer protective social services for purposes of preventing 
 74.30  further abuses, safeguarding and enhancing the welfare of the 
 74.31  abused or neglected minor, and preserving family life whenever 
 74.32  possible.  If the report alleges a violation of a criminal 
 74.33  statute involving sexual abuse, physical abuse, or neglect or 
 74.34  endangerment, under section 609.378, the local law enforcement 
 74.35  agency and local welfare agency shall coordinate the planning 
 74.36  and execution of their respective investigation and assessment 
 75.1   efforts to avoid a duplication of fact-finding efforts and 
 75.2   multiple interviews.  Each agency shall prepare a separate 
 75.3   report of the results of its investigation.  In cases of alleged 
 75.4   child maltreatment resulting in death, the local agency may rely 
 75.5   on the fact-finding efforts of a law enforcement investigation 
 75.6   to make a determination of whether or not maltreatment 
 75.7   occurred.  When necessary the local welfare agency shall seek 
 75.8   authority to remove the child from the custody of a parent, 
 75.9   guardian, or adult with whom the child is living.  In performing 
 75.10  any of these duties, the local welfare agency shall maintain 
 75.11  appropriate records.  
 75.12     If the assessment indicates there is a potential for abuse 
 75.13  of alcohol or other drugs by the parent, guardian, or person 
 75.14  responsible for the child's care, the local welfare agency shall 
 75.15  conduct a chemical use assessment pursuant to Minnesota Rules, 
 75.16  part 9530.6615.  The local welfare agency shall report the 
 75.17  determination of the chemical use assessment, and the 
 75.18  recommendations and referrals for alcohol and other drug 
 75.19  treatment services to the state authority on alcohol and drug 
 75.20  abuse. 
 75.21     (b) When a local agency receives a report or otherwise has 
 75.22  information indicating that a child who is a client, as defined 
 75.23  in section 245.91, has been the subject of physical abuse, 
 75.24  sexual abuse, or neglect at an agency, facility, or program as 
 75.25  defined in section 245.91, it shall, in addition to its other 
 75.26  duties under this section, immediately inform the ombudsman 
 75.27  established under sections 245.91 to 245.97.  The commissioner 
 75.28  of education shall inform the ombudsman established under 
 75.29  sections 245.91 to 245.97 of reports regarding a child defined 
 75.30  as a client in section 245.91 that maltreatment occurred at a 
 75.31  school as defined in sections 120A.05, subdivisions 9, 11, and 
 75.32  13, and 124D.10. 
 75.33     (c) Authority of the local welfare agency responsible for 
 75.34  assessing the child abuse or neglect report, the agency 
 75.35  responsible for assessing or investigating the report, and of 
 75.36  the local law enforcement agency for investigating the alleged 
 76.1   abuse or neglect includes, but is not limited to, authority to 
 76.2   interview, without parental consent, the alleged victim and any 
 76.3   other minors who currently reside with or who have resided with 
 76.4   the alleged offender.  The interview may take place at school or 
 76.5   at any facility or other place where the alleged victim or other 
 76.6   minors might be found or the child may be transported to, and 
 76.7   the interview conducted at, a place appropriate for the 
 76.8   interview of a child designated by the local welfare agency or 
 76.9   law enforcement agency.  The interview may take place outside 
 76.10  the presence of the alleged offender or parent, legal custodian, 
 76.11  guardian, or school official.  Except as provided in this 
 76.12  paragraph, the parent, legal custodian, or guardian shall be 
 76.13  notified by the responsible local welfare or law enforcement 
 76.14  agency no later than the conclusion of the investigation or 
 76.15  assessment that this interview has occurred.  Notwithstanding 
 76.16  rule 49.02 of the Minnesota Rules of Procedure for Juvenile 
 76.17  Courts, the juvenile court may, after hearing on an ex parte 
 76.18  motion by the local welfare agency, order that, where reasonable 
 76.19  cause exists, the agency withhold notification of this interview 
 76.20  from the parent, legal custodian, or guardian.  If the interview 
 76.21  took place or is to take place on school property, the order 
 76.22  shall specify that school officials may not disclose to the 
 76.23  parent, legal custodian, or guardian the contents of the 
 76.24  notification of intent to interview the child on school 
 76.25  property, as provided under this paragraph, and any other 
 76.26  related information regarding the interview that may be a part 
 76.27  of the child's school record.  A copy of the order shall be sent 
 76.28  by the local welfare or law enforcement agency to the 
 76.29  appropriate school official. 
 76.30     (d) When the local welfare, local law enforcement agency, 
 76.31  or the agency responsible for assessing or investigating a 
 76.32  report of maltreatment determines that an interview should take 
 76.33  place on school property, written notification of intent to 
 76.34  interview the child on school property must be received by 
 76.35  school officials prior to the interview.  The notification shall 
 76.36  include the name of the child to be interviewed, the purpose of 
 77.1   the interview, and a reference to the statutory authority to 
 77.2   conduct an interview on school property.  For interviews 
 77.3   conducted by the local welfare agency, the notification shall be 
 77.4   signed by the chair of the local social services agency or the 
 77.5   chair's designee.  The notification shall be private data on 
 77.6   individuals subject to the provisions of this paragraph.  School 
 77.7   officials may not disclose to the parent, legal custodian, or 
 77.8   guardian the contents of the notification or any other related 
 77.9   information regarding the interview until notified in writing by 
 77.10  the local welfare or law enforcement agency that the 
 77.11  investigation or assessment has been concluded, unless a school 
 77.12  employee or agent is alleged to have maltreated the child.  
 77.13  Until that time, the local welfare or law enforcement agency or 
 77.14  the agency responsible for assessing or investigating a report 
 77.15  of maltreatment shall be solely responsible for any disclosures 
 77.16  regarding the nature of the assessment or investigation.  
 77.17     Except where the alleged offender is believed to be a 
 77.18  school official or employee, the time and place, and manner of 
 77.19  the interview on school premises shall be within the discretion 
 77.20  of school officials, but the local welfare or law enforcement 
 77.21  agency shall have the exclusive authority to determine who may 
 77.22  attend the interview.  The conditions as to time, place, and 
 77.23  manner of the interview set by the school officials shall be 
 77.24  reasonable and the interview shall be conducted not more than 24 
 77.25  hours after the receipt of the notification unless another time 
 77.26  is considered necessary by agreement between the school 
 77.27  officials and the local welfare or law enforcement agency.  
 77.28  Where the school fails to comply with the provisions of this 
 77.29  paragraph, the juvenile court may order the school to comply.  
 77.30  Every effort must be made to reduce the disruption of the 
 77.31  educational program of the child, other students, or school 
 77.32  staff when an interview is conducted on school premises.  
 77.33     (e) Where the alleged offender or a person responsible for 
 77.34  the care of the alleged victim or other minor prevents access to 
 77.35  the victim or other minor by the local welfare agency, the 
 77.36  juvenile court may order the parents, legal custodian, or 
 78.1   guardian to produce the alleged victim or other minor for 
 78.2   questioning by the local welfare agency or the local law 
 78.3   enforcement agency outside the presence of the alleged offender 
 78.4   or any person responsible for the child's care at reasonable 
 78.5   places and times as specified by court order.  
 78.6      (f) Before making an order under paragraph (e), the court 
 78.7   shall issue an order to show cause, either upon its own motion 
 78.8   or upon a verified petition, specifying the basis for the 
 78.9   requested interviews and fixing the time and place of the 
 78.10  hearing.  The order to show cause shall be served personally and 
 78.11  shall be heard in the same manner as provided in other cases in 
 78.12  the juvenile court.  The court shall consider the need for 
 78.13  appointment of a guardian ad litem to protect the best interests 
 78.14  of the child.  If appointed, the guardian ad litem shall be 
 78.15  present at the hearing on the order to show cause.  
 78.16     (g) The commissioner of human services, the ombudsman for 
 78.17  mental health and mental retardation, the local welfare agencies 
 78.18  responsible for investigating reports, the commissioner of 
 78.19  education, and the local law enforcement agencies have the right 
 78.20  to enter facilities as defined in subdivision 2 and to inspect 
 78.21  and copy the facility's records, including medical records, as 
 78.22  part of the investigation.  Notwithstanding the provisions of 
 78.23  chapter 13, they also have the right to inform the facility 
 78.24  under investigation that they are conducting an investigation, 
 78.25  to disclose to the facility the names of the individuals under 
 78.26  investigation for abusing or neglecting a child, and to provide 
 78.27  the facility with a copy of the report and the investigative 
 78.28  findings. 
 78.29     (h) The local welfare agency or the agency responsible for 
 78.30  assessing or investigating the report shall collect available 
 78.31  and relevant information to ascertain whether maltreatment 
 78.32  occurred and whether protective services are needed.  
 78.33  Information collected includes, when relevant, information with 
 78.34  regard to the person reporting the alleged maltreatment, 
 78.35  including the nature of the reporter's relationship to the child 
 78.36  and to the alleged offender, and the basis of the reporter's 
 79.1   knowledge for the report; the child allegedly being maltreated; 
 79.2   the alleged offender; the child's caretaker; and other 
 79.3   collateral sources having relevant information related to the 
 79.4   alleged maltreatment.  The local welfare agency or the agency 
 79.5   responsible for assessing or investigating the report may make a 
 79.6   determination of no maltreatment early in an assessment, and 
 79.7   close the case and retain immunity, if the collected information 
 79.8   shows no basis for a full assessment or investigation. 
 79.9      Information relevant to the assessment or investigation 
 79.10  must be asked for, and may include: 
 79.11     (1) the child's sex and age, prior reports of maltreatment, 
 79.12  information relating to developmental functioning, credibility 
 79.13  of the child's statement, and whether the information provided 
 79.14  under this clause is consistent with other information collected 
 79.15  during the course of the assessment or investigation; 
 79.16     (2) the alleged offender's age, a record check for prior 
 79.17  reports of maltreatment, and criminal charges and convictions.  
 79.18  The local welfare agency or the agency responsible for assessing 
 79.19  or investigating the report must provide the alleged offender 
 79.20  with an opportunity to make a statement.  The alleged offender 
 79.21  may submit supporting documentation relevant to the assessment 
 79.22  or investigation; 
 79.23     (3) collateral source information regarding the alleged 
 79.24  maltreatment and care of the child.  Collateral information 
 79.25  includes, when relevant:  (i) a medical examination of the 
 79.26  child; (ii) prior medical records relating to the alleged 
 79.27  maltreatment or the care of the child maintained by any 
 79.28  facility, clinic, or health care professional and an interview 
 79.29  with the treating professionals; and (iii) interviews with the 
 79.30  child's caretakers, including the child's parent, guardian, 
 79.31  foster parent, child care provider, teachers, counselors, family 
 79.32  members, relatives, and other persons who may have knowledge 
 79.33  regarding the alleged maltreatment and the care of the child; 
 79.34  and 
 79.35     (4) information on the existence of domestic abuse and 
 79.36  violence in the home of the child, and substance abuse. 
 80.1      Nothing in this paragraph precludes the local welfare 
 80.2   agency, the local law enforcement agency, or the agency 
 80.3   responsible for assessing or investigating the report from 
 80.4   collecting other relevant information necessary to conduct the 
 80.5   assessment or investigation.  Notwithstanding section 13.384 or 
 80.6   144.335, the local welfare agency has access to medical data and 
 80.7   records for purposes of clause (3).  Notwithstanding the data's 
 80.8   classification in the possession of any other agency, data 
 80.9   acquired by the local welfare agency or the agency responsible 
 80.10  for assessing or investigating the report during the course of 
 80.11  the assessment or investigation are private data on individuals 
 80.12  and must be maintained in accordance with subdivision 11.  Data 
 80.13  of the commissioner of education collected or maintained during 
 80.14  and for the purpose of an investigation of alleged maltreatment 
 80.15  in a school are governed by this section, notwithstanding the 
 80.16  data's classification as educational, licensing, or personnel 
 80.17  data under chapter 13. 
 80.18     In conducting an assessment or investigation involving a 
 80.19  school facility as defined in subdivision 2, paragraph (f), the 
 80.20  commissioner of education shall collect investigative reports 
 80.21  and data that are relevant to a report of maltreatment and are 
 80.22  from local law enforcement and the school facility.  
 80.23     (i) In the initial stages of an assessment or 
 80.24  investigation, the local welfare agency shall conduct a 
 80.25  face-to-face observation of the child reported to be maltreated 
 80.26  and a face-to-face interview of the alleged offender.  At the 
 80.27  initial contact, the local child welfare agency or the agency 
 80.28  responsible for assessing or investigating the report must 
 80.29  inform the alleged offender of the complaints or allegations 
 80.30  made against the individual in a manner consistent with laws 
 80.31  protecting the rights of the person who made the report.  The 
 80.32  interview with the alleged offender may be postponed if it would 
 80.33  jeopardize an active law enforcement investigation. 
 80.34     (j) The local welfare agency shall use a question and 
 80.35  answer interviewing format with questioning as nondirective as 
 80.36  possible to elicit spontaneous responses.  The following 
 81.1   interviewing methods and procedures must be used whenever 
 81.2   possible when collecting information: 
 81.3      (1) audio recordings of all interviews with witnesses and 
 81.4   collateral sources; and 
 81.5      (2) in cases of alleged sexual abuse, audio-video 
 81.6   recordings of each interview with the alleged victim and child 
 81.7   witnesses.  
 81.8      (k) In conducting an assessment or investigation involving 
 81.9   a school facility as defined in subdivision 2, paragraph (f), 
 81.10  the commissioner of education shall collect available and 
 81.11  relevant information and use the procedures in paragraphs (h), 
 81.12  (i), and (j), provided that the commissioner may also base the 
 81.13  assessment or investigation on investigative reports and data 
 81.14  received from the school facility and local law enforcement, to 
 81.15  the extent those investigations satisfy the requirements of 
 81.16  paragraphs (h), (i), and (j). 
 81.17     Sec. 79.  Minnesota Statutes 2003 Supplement, section 
 81.18  626.556, subdivision 10i, is amended to read: 
 81.19     Subd. 10i.  [ADMINISTRATIVE RECONSIDERATION OF FINAL 
 81.20  DETERMINATION OF MALTREATMENT AND DISQUALIFICATION BASED ON 
 81.21  SERIOUS OR RECURRING MALTREATMENT; REVIEW PANEL.] (a) Except as 
 81.22  provided under paragraph (e), an individual or facility that the 
 81.23  commissioner of human services, a local social service agency, 
 81.24  or the commissioner of education determines has maltreated a 
 81.25  child, an interested person acting on behalf of the child, 
 81.26  regardless of the determination, who contests the investigating 
 81.27  agency's final determination regarding maltreatment, may request 
 81.28  the investigating agency to reconsider its final determination 
 81.29  regarding maltreatment.  The request for reconsideration must be 
 81.30  submitted in writing to the investigating agency within 15 
 81.31  calendar days after receipt of notice of the final determination 
 81.32  regarding maltreatment or, if the request is made by an 
 81.33  interested person who is not entitled to notice, within 15 days 
 81.34  after receipt of the notice by the parent or guardian of the 
 81.35  child.  Effective January 1, 2002, an individual who was 
 81.36  determined to have maltreated a child under this section and who 
 82.1   was disqualified on the basis of serious or recurring 
 82.2   maltreatment under sections 245C.14 and 245C.15, may request 
 82.3   reconsideration of the maltreatment determination and the 
 82.4   disqualification.  The request for reconsideration of the 
 82.5   maltreatment determination and the disqualification must be 
 82.6   submitted within 30 calendar days of the individual's receipt of 
 82.7   the notice of disqualification under sections 245C.16 and 
 82.8   245C.17. 
 82.9      (b) Except as provided under paragraphs (e) and (f), if the 
 82.10  investigating agency denies the request or fails to act upon the 
 82.11  request within 15 calendar days after receiving the request for 
 82.12  reconsideration, the person or facility entitled to a fair 
 82.13  hearing under section 256.045 may submit to the commissioner of 
 82.14  human services or the commissioner of education a written 
 82.15  request for a hearing under that section.  Section 256.045 also 
 82.16  governs hearings requested to contest a final determination of 
 82.17  the commissioner of education.  For reports involving 
 82.18  maltreatment of a child in a facility, an interested person 
 82.19  acting on behalf of the child may request a review by the Child 
 82.20  Maltreatment Review Panel under section 256.022 if the 
 82.21  investigating agency denies the request or fails to act upon the 
 82.22  request or if the interested person contests a reconsidered 
 82.23  determination.  The investigating agency shall notify persons 
 82.24  who request reconsideration of their rights under this 
 82.25  paragraph.  The request must be submitted in writing to the 
 82.26  review panel and a copy sent to the investigating agency within 
 82.27  30 calendar days of receipt of notice of a denial of a request 
 82.28  for reconsideration or of a reconsidered determination.  The 
 82.29  request must specifically identify the aspects of the agency 
 82.30  determination with which the person is dissatisfied. 
 82.31     (c) If, as a result of a reconsideration or review, the 
 82.32  investigating agency changes the final determination of 
 82.33  maltreatment, that agency shall notify the parties specified in 
 82.34  subdivisions 10b, 10d, and 10f. 
 82.35     (d) Except as provided under paragraph (f), if an 
 82.36  individual or facility contests the investigating agency's final 
 83.1   determination regarding maltreatment by requesting a fair 
 83.2   hearing under section 256.045, the commissioner of human 
 83.3   services shall assure that the hearing is conducted and a 
 83.4   decision is reached within 90 days of receipt of the request for 
 83.5   a hearing.  The time for action on the decision may be extended 
 83.6   for as many days as the hearing is postponed or the record is 
 83.7   held open for the benefit of either party. 
 83.8      (e) Effective January 1, 2002, if an individual was 
 83.9   disqualified under sections 245C.14 and 245C.15, on the basis of 
 83.10  a determination of maltreatment, which was serious or recurring, 
 83.11  and the individual has requested reconsideration of the 
 83.12  maltreatment determination under paragraph (a) and requested 
 83.13  reconsideration of the disqualification under sections 245C.21 
 83.14  to 245C.27, reconsideration of the maltreatment determination 
 83.15  and reconsideration of the disqualification shall be 
 83.16  consolidated into a single reconsideration.  If reconsideration 
 83.17  of the maltreatment determination is denied or the 
 83.18  disqualification is not set aside or rescinded under sections 
 83.19  245C.21 to 245C.27, the individual may request a fair hearing 
 83.20  under section 256.045.  If an individual requests a fair hearing 
 83.21  on the maltreatment determination and the disqualification, the 
 83.22  scope of the fair hearing shall include both the maltreatment 
 83.23  determination and the disqualification. 
 83.24     (f) Effective January 1, 2002, if a maltreatment 
 83.25  determination or a disqualification based on serious or 
 83.26  recurring maltreatment is the basis for a denial of a license 
 83.27  under section 245A.05 or a licensing sanction under section 
 83.28  245A.07, the license holder has the right to a contested case 
 83.29  hearing under chapter 14 and Minnesota Rules, parts 1400.8510 
 83.30  1400.8505 to 1400.8612 and successor rules.  As provided for 
 83.31  under section 245A.08, subdivision 2a, the scope of the 
 83.32  contested case hearing shall include the maltreatment 
 83.33  determination, disqualification, and licensing sanction or 
 83.34  denial of a license.  In such cases, a fair hearing regarding 
 83.35  the maltreatment determination shall not be conducted under 
 83.36  paragraph (b).  If the disqualified subject is an individual 
 84.1   other than the license holder and upon whom a background study 
 84.2   must be conducted under chapter 245C, the hearings of all 
 84.3   parties may be consolidated into a single contested case hearing 
 84.4   upon consent of all parties and the administrative law judge. 
 84.5      (g) For purposes of this subdivision, "interested person 
 84.6   acting on behalf of the child" means a parent or legal guardian; 
 84.7   stepparent; grandparent; guardian ad litem; adult stepbrother, 
 84.8   stepsister, or sibling; or adult aunt or uncle; unless the 
 84.9   person has been determined to be the perpetrator of the 
 84.10  maltreatment. 
 84.11     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 84.12  following final enactment. 
 84.13     Sec. 80.  Minnesota Statutes 2003 Supplement, section 
 84.14  626.557, subdivision 9d, is amended to read: 
 84.15     Subd. 9d.  [ADMINISTRATIVE RECONSIDERATION OF FINAL 
 84.16  DISPOSITION OF MALTREATMENT AND DISQUALIFICATION BASED ON 
 84.17  SERIOUS OR RECURRING MALTREATMENT; REVIEW PANEL.] (a) Except as 
 84.18  provided under paragraph (e), any individual or facility which a 
 84.19  lead agency determines has maltreated a vulnerable adult, or the 
 84.20  vulnerable adult or an interested person acting on behalf of the 
 84.21  vulnerable adult, regardless of the lead agency's determination, 
 84.22  who contests the lead agency's final disposition of an 
 84.23  allegation of maltreatment, may request the lead agency to 
 84.24  reconsider its final disposition.  The request for 
 84.25  reconsideration must be submitted in writing to the lead agency 
 84.26  within 15 calendar days after receipt of notice of final 
 84.27  disposition or, if the request is made by an interested person 
 84.28  who is not entitled to notice, within 15 days after receipt of 
 84.29  the notice by the vulnerable adult or the vulnerable adult's 
 84.30  legal guardian.  An individual who was determined to have 
 84.31  maltreated a vulnerable adult under this section and who was 
 84.32  disqualified on the basis of serious or recurring maltreatment 
 84.33  under sections 245C.14 and 245C.15, may request reconsideration 
 84.34  of the maltreatment determination and the disqualification.  The 
 84.35  request for reconsideration of the maltreatment determination 
 84.36  and the disqualification must be submitted within 30 calendar 
 85.1   days of the individual's receipt of the notice of 
 85.2   disqualification under sections 245C.16 and 245C.17. 
 85.3      (b) Except as provided under paragraphs (e) and (f), if the 
 85.4   lead agency denies the request or fails to act upon the request 
 85.5   within 15 calendar days after receiving the request for 
 85.6   reconsideration, the person or facility entitled to a fair 
 85.7   hearing under section 256.045, may submit to the commissioner of 
 85.8   human services a written request for a hearing under that 
 85.9   statute.  The vulnerable adult, or an interested person acting 
 85.10  on behalf of the vulnerable adult, may request a review by the 
 85.11  Vulnerable Adult Maltreatment Review Panel under section 256.021 
 85.12  if the lead agency denies the request or fails to act upon the 
 85.13  request, or if the vulnerable adult or interested person 
 85.14  contests a reconsidered disposition.  The lead agency shall 
 85.15  notify persons who request reconsideration of their rights under 
 85.16  this paragraph.  The request must be submitted in writing to the 
 85.17  review panel and a copy sent to the lead agency within 30 
 85.18  calendar days of receipt of notice of a denial of a request for 
 85.19  reconsideration or of a reconsidered disposition.  The request 
 85.20  must specifically identify the aspects of the agency 
 85.21  determination with which the person is dissatisfied.  
 85.22     (c) If, as a result of a reconsideration or review, the 
 85.23  lead agency changes the final disposition, it shall notify the 
 85.24  parties specified in subdivision 9c, paragraph (d). 
 85.25     (d) For purposes of this subdivision, "interested person 
 85.26  acting on behalf of the vulnerable adult" means a person 
 85.27  designated in writing by the vulnerable adult to act on behalf 
 85.28  of the vulnerable adult, or a legal guardian or conservator or 
 85.29  other legal representative, a proxy or health care agent 
 85.30  appointed under chapter 145B or 145C, or an individual who is 
 85.31  related to the vulnerable adult, as defined in section 245A.02, 
 85.32  subdivision 13. 
 85.33     (e) If an individual was disqualified under sections 
 85.34  245C.14 and 245C.15, on the basis of a determination of 
 85.35  maltreatment, which was serious or recurring, and the individual 
 85.36  has requested reconsideration of the maltreatment determination 
 86.1   under paragraph (a) and reconsideration of the disqualification 
 86.2   under sections 245C.21 to 245C.27, reconsideration of the 
 86.3   maltreatment determination and requested reconsideration of the 
 86.4   disqualification shall be consolidated into a single 
 86.5   reconsideration.  If reconsideration of the maltreatment 
 86.6   determination is denied or if the disqualification is not set 
 86.7   aside or rescinded under sections 245C.21 to 245C.27, the 
 86.8   individual may request a fair hearing under section 256.045.  If 
 86.9   an individual requests a fair hearing on the maltreatment 
 86.10  determination and the disqualification, the scope of the fair 
 86.11  hearing shall include both the maltreatment determination and 
 86.12  the disqualification. 
 86.13     (f) If a maltreatment determination or a disqualification 
 86.14  based on serious or recurring maltreatment is the basis for a 
 86.15  denial of a license under section 245A.05 or a licensing 
 86.16  sanction under section 245A.07, the license holder has the right 
 86.17  to a contested case hearing under chapter 14 and Minnesota 
 86.18  Rules, parts 1400.8510 1400.8505 to 1400.8612 and successor 
 86.19  rules.  As provided for under section 245A.08, the scope of the 
 86.20  contested case hearing shall include the maltreatment 
 86.21  determination, disqualification, and licensing sanction or 
 86.22  denial of a license.  In such cases, a fair hearing shall not be 
 86.23  conducted under paragraph (b).  If the disqualified subject is 
 86.24  an individual other than the license holder and upon whom a 
 86.25  background study must be conducted under chapter 245C, the 
 86.26  hearings of all parties may be consolidated into a single 
 86.27  contested case hearing upon consent of all parties and the 
 86.28  administrative law judge. 
 86.29     (g) Until August 1, 2002, an individual or facility that 
 86.30  was determined by the commissioner of human services or the 
 86.31  commissioner of health to be responsible for neglect under 
 86.32  section 626.5572, subdivision 17, after October 1, 1995, and 
 86.33  before August 1, 2001, that believes that the finding of neglect 
 86.34  does not meet an amended definition of neglect may request a 
 86.35  reconsideration of the determination of neglect.  The 
 86.36  commissioner of human services or the commissioner of health 
 87.1   shall mail a notice to the last known address of individuals who 
 87.2   are eligible to seek this reconsideration.  The request for 
 87.3   reconsideration must state how the established findings no 
 87.4   longer meet the elements of the definition of neglect.  The 
 87.5   commissioner shall review the request for reconsideration and 
 87.6   make a determination within 15 calendar days.  The 
 87.7   commissioner's decision on this reconsideration is the final 
 87.8   agency action. 
 87.9      (1) For purposes of compliance with the data destruction 
 87.10  schedule under subdivision 12b, paragraph (d), when a finding of 
 87.11  substantiated maltreatment has been changed as a result of a 
 87.12  reconsideration under this paragraph, the date of the original 
 87.13  finding of a substantiated maltreatment must be used to 
 87.14  calculate the destruction date. 
 87.15     (2) For purposes of any background studies under chapter 
 87.16  245C, when a determination of substantiated maltreatment has 
 87.17  been changed as a result of a reconsideration under this 
 87.18  paragraph, any prior disqualification of the individual under 
 87.19  chapter 245C that was based on this determination of 
 87.20  maltreatment shall be rescinded, and for future background 
 87.21  studies under chapter 245C the commissioner must not use the 
 87.22  previous determination of substantiated maltreatment as a basis 
 87.23  for disqualification or as a basis for referring the 
 87.24  individual's maltreatment history to a health-related licensing 
 87.25  board under section 245C.31. 
 87.26     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 87.27  following final enactment. 
 87.28     Sec. 81.  [DIRECTION TO COMMISSIONER; REPORT.] 
 87.29     The commissioner of human services shall report on the 
 87.30  number of adult foster care licenses, family adult day services 
 87.31  licenses, combined adult foster care and family adult day 
 87.32  services, and adult day services center licenses and their 
 87.33  capacities with changes in the number of licenses and capacities 
 87.34  from August 1, 2004, to August 1, 2006.  The commissioner shall 
 87.35  provide this report to the chairs of the senate and house 
 87.36  committees with jurisdiction over health and human services 
 88.1   policy by September 15, 2006. 
 88.2      Sec. 82.  [REVISOR'S INSTRUCTION.] 
 88.3      The revisor of statutes shall insert the phrase "or adult 
 88.4   day services" after the phrase "adult day care," and the phrase 
 88.5   "or adult day services center" after "adult day care center," 
 88.6   wherever it appears in Minnesota Rules, parts 9555.9600 to 
 88.7   9555.9730, or the headnotes to the rule parts. 
 88.8      Sec. 83.  [REPEALER.] 
 88.9      Minnesota Statutes 2003 Supplement, section 245C.02, 
 88.10  subdivision 17; and Minnesota Rules, parts 9525.1600; 9543.0040, 
 88.11  subpart 3; 9543.1000; 9543.1010; 9543.1020; 9543.1030; 
 88.12  9543.1040; 9543.1050; and 9543.1060, are repealed. 
 88.13                             ARTICLE 2 
 88.14                            CORRECTIONS 
 88.15     Section 1.  Minnesota Statutes 2003 Supplement, section 
 88.16  241.021, subdivision 6, is amended to read: 
 88.17     Subd. 6.  [BACKGROUND STUDIES.] (a) The commissioner of 
 88.18  corrections is authorized to do background studies on personnel 
 88.19  employed by any facility serving children or youth that is 
 88.20  licensed under this section.  The commissioner of corrections 
 88.21  shall contract with the commissioner of human services to 
 88.22  conduct background studies of individuals providing services in 
 88.23  secure and nonsecure residential facilities and detention 
 88.24  facilities who have direct contact, as defined under section 
 88.25  245C.02, subdivision 11, with persons served in the facilities.  
 88.26  A disqualification of an individual in this section shall 
 88.27  disqualify the individual from positions allowing direct contact 
 88.28  or access to persons and residents receiving services in 
 88.29  programs licensed by the Departments of Health and Human 
 88.30  Services as provided in chapter 245C.  
 88.31     (b) A clerk or administrator of any court, the Bureau of 
 88.32  Criminal Apprehension, a prosecuting attorney, a county sheriff, 
 88.33  or a chief of a local police department, shall assist in these 
 88.34  studies by providing to the commissioner of human services, or 
 88.35  the commissioner's representative, all criminal conviction data 
 88.36  available from local, state, and national criminal history 
 89.1   record repositories, including the criminal justice data 
 89.2   communications network, pertaining to the following individuals: 
 89.3   applicants, operators, all persons living in the household, and 
 89.4   all staff of any facility subject to background studies under 
 89.5   this subdivision.  
 89.6      (c) The Department of Human Services shall conduct the 
 89.7   background studies required by paragraph (a) in compliance with 
 89.8   the provisions of chapter 245C.  For the purpose of this 
 89.9   subdivision, the term "secure and nonsecure residential facility 
 89.10  and detention facility" shall include programs licensed or 
 89.11  certified under subdivision 2.  The Department of Human Services 
 89.12  shall provide necessary forms and instructions, shall conduct 
 89.13  the necessary background studies of individuals, and shall 
 89.14  provide notification of the results of the studies to the 
 89.15  facilities, individuals, and the commissioner of corrections.  
 89.16  Individuals shall be disqualified under the provisions of 
 89.17  chapter 245C. 
 89.18     If an individual is disqualified, the Department of Human 
 89.19  Services shall notify the facility and the individual and shall 
 89.20  inform the individual of the right to request a reconsideration 
 89.21  of the disqualification by submitting the request to the 
 89.22  Department of Corrections. 
 89.23     (d) The commissioner of corrections shall review and decide 
 89.24  reconsideration requests, including the granting of variances, 
 89.25  in accordance with the procedures and criteria contained in 
 89.26  chapter 245C.  The commissioner's decision shall be provided to 
 89.27  the individual and to the Department of Human Services.  The 
 89.28  commissioner's decision to grant or deny a reconsideration of 
 89.29  disqualification is the final administrative agency action. 
 89.30     (e) Facilities described in paragraph (a) shall be 
 89.31  responsible for cooperating with the departments in implementing 
 89.32  the provisions of this subdivision.  The responsibilities 
 89.33  imposed on applicants and licensees under chapters 245A and 245C 
 89.34  shall apply to these facilities.  The provisions of sections 
 89.35  245C.03, subdivision 3, 245C.04, subdivision 4, paragraph (b), 
 89.36  and 245C.10, subdivision 2, shall apply to applicants, 
 90.1   licensees, and individuals. 
 90.2                              ARTICLE 3 
 90.3                            MISCELLANEOUS 
 90.4      Section 1.  Minnesota Statutes 2002, section 13.43, 
 90.5   subdivision 2, is amended to read: 
 90.6      Subd. 2.  [PUBLIC DATA.] (a) Except for employees described 
 90.7   in subdivision 5 and the limitations described in subdivision 
 90.8   5a, the following personnel data on current and former 
 90.9   employees, volunteers, and independent contractors of a state 
 90.10  agency, statewide system, or political subdivision and members 
 90.11  of advisory boards or commissions is public: 
 90.12     (1) name; employee identification number, which must not be 
 90.13  the employee's Social Security number; actual gross salary; 
 90.14  salary range; contract fees; actual gross pension; the value and 
 90.15  nature of employer paid fringe benefits; and the basis for and 
 90.16  the amount of any added remuneration, including expense 
 90.17  reimbursement, in addition to salary; 
 90.18     (2) job title and bargaining unit; job description; 
 90.19  education and training background; and previous work experience; 
 90.20     (3) date of first and last employment; 
 90.21     (4) the existence and status of any complaints or charges 
 90.22  against the employee, regardless of whether the complaint or 
 90.23  charge resulted in a disciplinary action; 
 90.24     (5) the final disposition of any disciplinary action 
 90.25  together with the specific reasons for the action and data 
 90.26  documenting the basis of the action, excluding data that would 
 90.27  identify confidential sources who are employees of the public 
 90.28  body; 
 90.29     (6) the terms of any agreement settling any dispute arising 
 90.30  out of an employment relationship, including a buyout agreement 
 90.31  as defined in section 123B.143, subdivision 2, paragraph (a); 
 90.32  except that the agreement must include specific reasons for the 
 90.33  agreement if it involves the payment of more than $10,000 of 
 90.34  public money; 
 90.35     (7) work location; a work telephone number; badge number; 
 90.36  and honors and awards received; and 
 91.1      (8) payroll time sheets or other comparable data that are 
 91.2   only used to account for employee's work time for payroll 
 91.3   purposes, except to the extent that release of time sheet data 
 91.4   would reveal the employee's reasons for the use of sick or other 
 91.5   medical leave or other not public data; and city and county of 
 91.6   residence. 
 91.7      (b) For purposes of this subdivision, a final disposition 
 91.8   occurs when the state agency, statewide system, or political 
 91.9   subdivision makes its final decision about the disciplinary 
 91.10  action, regardless of the possibility of any later proceedings 
 91.11  or court proceedings.  In the case of arbitration proceedings 
 91.12  arising under collective bargaining agreements, a final 
 91.13  disposition occurs at the conclusion of the arbitration 
 91.14  proceedings, or upon the failure of the employee to elect 
 91.15  arbitration within the time provided by the collective 
 91.16  bargaining agreement.  Final disposition includes a resignation 
 91.17  by an individual when the resignation occurs after the final 
 91.18  decision of the state agency, statewide system, political 
 91.19  subdivision, or arbitrator. 
 91.20     (c) The state agency, statewide system, or political 
 91.21  subdivision may display a photograph of a current or former 
 91.22  employee to a prospective witness as part of the state agency's, 
 91.23  statewide system's, or political subdivision's investigation of 
 91.24  any complaint or charge against the employee. 
 91.25     (d) A complainant has access to a statement provided by the 
 91.26  complainant to a state agency, statewide system, or political 
 91.27  subdivision in connection with a complaint or charge against an 
 91.28  employee. 
 91.29     (e) Notwithstanding paragraph (a), clause (5), upon 
 91.30  completion of an investigation of a complaint or charge against 
 91.31  a public official, or if a public official resigns or is 
 91.32  terminated from employment while the complaint or charge is 
 91.33  pending, all data relating to the complaint or charge are 
 91.34  public, unless access to the data would jeopardize an active 
 91.35  investigation or reveal confidential sources.  For purposes of 
 91.36  this paragraph, "public official" means: 
 92.1      (1) the head of a state agency and deputy and assistant 
 92.2   state agency heads; 
 92.3      (2) members of boards or commissions required by law to be 
 92.4   appointed by the governor or other elective officers; and 
 92.5      (3) executive or administrative heads of departments, 
 92.6   bureaus, divisions, or institutions. 
 92.7      Sec. 2.  Minnesota Statutes 2002, section 13.43, is amended 
 92.8   by adding a subdivision to read: 
 92.9      Subd. 5a.  [LIMITATION ON DISCLOSURE OF CERTAIN PERSONNEL 
 92.10  DATA.] Notwithstanding any other provision of this section, the 
 92.11  following data relating to employees of a secure treatment 
 92.12  facility defined in section 253B.02, subdivision 18a, employees 
 92.13  of a state correctional facility, or employees of the Department 
 92.14  of Corrections directly involved in supervision of offenders in 
 92.15  the community, shall not be disclosed to facility patients, 
 92.16  corrections inmates, or other individuals whom facility or 
 92.17  correction administrators reasonably believe will use the 
 92.18  information to harass, intimidate, or assault any such 
 92.19  employees:  place where previous education or training occurred; 
 92.20  place of prior employment; and payroll timesheets or other 
 92.21  comparable data, to the extent that payroll timesheets or other 
 92.22  comparable data may disclose:  future work assignments, home 
 92.23  address or telephone number, the location of employees during 
 92.24  nonwork hours, or the location of employees' immediate family 
 92.25  members. 
 92.26     Sec. 3.  Minnesota Statutes 2002, section 62A.042, is 
 92.27  amended to read: 
 92.28     62A.042 [FAMILY COVERAGE; COVERAGE OF NEWBORN INFANTS.] 
 92.29     Subdivision 1.  [INDIVIDUAL FAMILY POLICIES.] (a) No policy 
 92.30  of individual accident and sickness insurance which provides for 
 92.31  insurance for more than one person under section 62A.03, 
 92.32  subdivision 1, clause (3), and no individual health maintenance 
 92.33  contract which provides for coverage for more than one person 
 92.34  under chapter 62D, shall be renewed to insure or cover any 
 92.35  person in this state or be delivered or issued for delivery to 
 92.36  any person in this state unless the policy or contract includes 
 93.1   as insured or covered members of the family any newborn infants 
 93.2   immediately from the moment of birth and thereafter which 
 93.3   insurance or contract shall provide coverage for illness, 
 93.4   injury, congenital malformation, or premature birth.  For 
 93.5   purposes of this paragraph, "newborn infants" includes 
 93.6   grandchildren who are financially dependent upon a covered 
 93.7   grandparent and who reside with that covered grandparent 
 93.8   continuously from birth.  No policy or contract covered by this 
 93.9   section may require notification to a health carrier as a 
 93.10  condition for this dependent coverage.  However, if the policy 
 93.11  or contract mandates an additional premium for each dependent, 
 93.12  the health carrier shall be entitled to all premiums that would 
 93.13  have been collected had the health carrier been aware of the 
 93.14  additional dependent.  The health carrier may withhold payment 
 93.15  of any health benefits for the new dependent until it has been 
 93.16  compensated with the applicable premium which would have been 
 93.17  owed if the health carrier had been informed of the additional 
 93.18  dependent immediately. 
 93.19     (b) The coverage under paragraph (a) includes benefits for 
 93.20  inpatient or outpatient expenses arising from medical and dental 
 93.21  treatment up to age 18 the limiting age for coverage of the 
 93.22  dependent, including orthodontic and oral surgery treatment, 
 93.23  involved in the management of birth defects known as cleft lip 
 93.24  and cleft palate.  Benefits for individuals age 19 up to the 
 93.25  limiting age for coverage of the dependent are limited to 
 93.26  inpatient or outpatient expenses arising from medical and dental 
 93.27  treatment that was scheduled or initiated prior to the dependent 
 93.28  turning age 19.  If orthodontic services are eligible for 
 93.29  coverage under a dental insurance plan and another policy or 
 93.30  contract, the dental plan shall be primary and the other policy 
 93.31  or contract shall be secondary in regard to the coverage 
 93.32  required under paragraph (a).  Payment for dental or orthodontic 
 93.33  treatment not related to the management of the congenital 
 93.34  condition of cleft lip and cleft palate shall not be covered 
 93.35  under this provision.  
 93.36     Subd. 2.  [GROUP POLICIES.] (a) No group accident and 
 94.1   sickness insurance policy and no group health maintenance 
 94.2   contract which provide for coverage of family members or other 
 94.3   dependents of an employee or other member of the covered group 
 94.4   shall be renewed to cover members of a group located in this 
 94.5   state or delivered or issued for delivery to any person in this 
 94.6   state unless the policy or contract includes as insured or 
 94.7   covered family members or dependents any newborn infants 
 94.8   immediately from the moment of birth and thereafter which 
 94.9   insurance or contract shall provide coverage for illness, 
 94.10  injury, congenital malformation, or premature birth.  For 
 94.11  purposes of this paragraph, "newborn infants" includes 
 94.12  grandchildren who are financially dependent upon a covered 
 94.13  grandparent and who reside with that covered grandparent 
 94.14  continuously from birth.  No policy or contract covered by this 
 94.15  section may require notification to a health carrier as a 
 94.16  condition for this dependent coverage.  However, if the policy 
 94.17  or contract mandates an additional premium for each dependent, 
 94.18  the health carrier shall be entitled to all premiums that would 
 94.19  have been collected had the health carrier been aware of the 
 94.20  additional dependent.  The health carrier may reduce the health 
 94.21  benefits owed to the insured, certificate holder, member, or 
 94.22  subscriber by the amount of past due premiums applicable to the 
 94.23  additional dependent. 
 94.24     (b) The coverage under paragraph (a) includes benefits for 
 94.25  inpatient or outpatient expenses arising from medical and dental 
 94.26  treatment up to age 18 the limiting age for coverage of the 
 94.27  dependent, including orthodontic and oral surgery treatment, 
 94.28  involved in the management of birth defects known as cleft lip 
 94.29  and cleft palate.  Benefits for individuals age 19 up to the 
 94.30  limiting age for coverage of the dependent are limited to 
 94.31  inpatient or outpatient expenses arising from medical and dental 
 94.32  treatment that was scheduled or initiated prior to the dependent 
 94.33  turning age 19.  If orthodontic services are eligible for 
 94.34  coverage under a dental insurance plan and another policy or 
 94.35  contract, the dental plan shall be primary and the other policy 
 94.36  or contract shall be secondary in regard to the coverage 
 95.1   required under paragraph (a).  Payment for dental or orthodontic 
 95.2   treatment not related to the management of the congenital 
 95.3   condition of cleft lip and cleft palate shall not be covered 
 95.4   under this provision. 
 95.5      <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 
 95.6   2005, and applies to coverage issued or renewed on or after that 
 95.7   date. 
 95.8      Sec. 4.  Minnesota Statutes 2002, section 62C.14, 
 95.9   subdivision 14, is amended to read: 
 95.10     Subd. 14.  [NEWBORN INFANT COVERAGE.] No subscriber's 
 95.11  individual contract or any group contract which provides for 
 95.12  coverage of family members or other dependents of a subscriber 
 95.13  or of an employee or other group member of a group subscriber, 
 95.14  shall be renewed, delivered, or issued for delivery in this 
 95.15  state unless such contract includes as covered family members or 
 95.16  dependents any newborn infants immediately from the moment of 
 95.17  birth and thereafter which insurance shall provide coverage for 
 95.18  illness, injury, congenital malformation or premature 
 95.19  birth.  The coverage described in this subdivision includes 
 95.20  coverage of cleft lip and cleft palate to the same extent 
 95.21  provided in section 62A.042, subdivisions 1, paragraph (b); and 
 95.22  2, paragraph (b).  For purposes of this paragraph, "newborn 
 95.23  infants" includes grandchildren who are financially dependent 
 95.24  upon a covered grandparent and who reside with that covered 
 95.25  grandparent continuously from birth.  No policy, contract, or 
 95.26  agreement covered by this section may require notification to a 
 95.27  health carrier as a condition for this dependent coverage.  
 95.28  However, if the policy, contract, or agreement mandates an 
 95.29  additional premium for each dependent, the health carrier shall 
 95.30  be entitled to all premiums that would have been collected had 
 95.31  the health carrier been aware of the additional dependent.  The 
 95.32  health carrier may withhold payment of any health benefits for 
 95.33  the new dependent until it has been compensated with the 
 95.34  applicable premium which would have been owed if the health 
 95.35  carrier had been informed of the additional dependent 
 95.36  immediately. 
 96.1      <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 
 96.2   2005, and applies to coverage issued or renewed on or after that 
 96.3   date. 
 96.4      Sec. 5.  [151.214] [PAYMENT DISCLOSURE.] 
 96.5      Subdivision 1.  [EXPLANATION OF PHARMACY BENEFITS.] A 
 96.6   pharmacist licensed under this chapter must provide to a 
 96.7   purchaser, for each prescription dispensed where part or all of 
 96.8   the cost of the prescription is being paid or reimbursed by an 
 96.9   employer-sponsored plan or health plan company, or its 
 96.10  contracted pharmacy benefit manager, the purchaser's co-payment 
 96.11  amount and the usual and customary price of the prescription or 
 96.12  the amount the pharmacy will be paid for the prescription drug 
 96.13  by the purchaser's employer-sponsored plan or health plan 
 96.14  company, or its contracted pharmacy benefit manager. 
 96.15     Subd. 2.  [NO PROHIBITION ON DISCLOSURE.] No contracting 
 96.16  agreement between an employer-sponsored health plan or health 
 96.17  plan company, or its contracted pharmacy benefit manager, and a 
 96.18  resident or nonresident pharmacy registered under this chapter, 
 96.19  may prohibit the pharmacy from disclosing to patients 
 96.20  information a pharmacy is required or given the option to 
 96.21  provide under subdivision 1. 
 96.22     Sec. 6.  Minnesota Statutes 2002, section 243.55, 
 96.23  subdivision 1, is amended to read: 
 96.24     Subdivision 1.  Any person who brings, sends, or in any 
 96.25  manner causes to be introduced into any state correctional 
 96.26  facility or state hospital, or within or upon the grounds 
 96.27  belonging to or land or controlled by any such facility or 
 96.28  hospital, or is found in possession of any controlled substance 
 96.29  as defined in section 152.01, subdivision 4, or any firearms, 
 96.30  weapons or explosives of any kind, without the consent of the 
 96.31  chief executive officer thereof, shall be guilty of a felony 
 96.32  and, upon conviction thereof, punished by imprisonment for a 
 96.33  term of not more than ten years.  Any person who brings, sends, 
 96.34  or in any manner causes to be introduced into any state 
 96.35  correctional facility or within or upon the grounds belonging to 
 96.36  or land controlled by the facility, or is found in the 
 97.1   possession of any intoxicating or alcoholic liquor or malt 
 97.2   beverage of any kind without the consent of the chief executive 
 97.3   officer thereof, shall be guilty of a gross misdemeanor.  The 
 97.4   provisions of this section shall not apply to physicians 
 97.5   carrying drugs or introducing any of the above described liquors 
 97.6   into such facilities for use in the practice of their 
 97.7   profession; nor to sheriffs or other peace officers carrying 
 97.8   revolvers or firearms as such officers in the discharge of 
 97.9   duties. 
 97.10     <b>[EFFECTIVE DATE.]</b> This section is effective August 1, 2004, 
 97.11  and applies to crimes committed on or after that date. 
 97.12     Sec. 7.  Minnesota Statutes 2002, section 245.462, 
 97.13  subdivision 18, is amended to read: 
 97.14     Subd. 18.  [MENTAL HEALTH PROFESSIONAL.] "Mental health 
 97.15  professional" means a person providing clinical services in the 
 97.16  treatment of mental illness who is qualified in at least one of 
 97.17  the following ways:  
 97.18     (1) in psychiatric nursing:  a registered nurse who is 
 97.19  licensed under sections 148.171 to 148.285,; and: 
 97.20     (i) who is certified as a clinical specialist or as a nurse 
 97.21  practitioner in adult or family psychiatric and mental health 
 97.22  nursing by a national nurse certification organization; or 
 97.23     (ii) who has a master's degree in nursing or one of the 
 97.24  behavioral sciences or related fields from an accredited college 
 97.25  or university or its equivalent, with at least 4,000 hours of 
 97.26  post-master's supervised experience in the delivery of clinical 
 97.27  services in the treatment of mental illness; 
 97.28     (2) in clinical social work:  a person licensed as an 
 97.29  independent clinical social worker under section 148B.21, 
 97.30  subdivision 6, or a person with a master's degree in social work 
 97.31  from an accredited college or university, with at least 4,000 
 97.32  hours of post-master's supervised experience in the delivery of 
 97.33  clinical services in the treatment of mental illness; 
 97.34     (3) in psychology:  an individual licensed by the board of 
 97.35  psychology under sections 148.88 to 148.98 who has stated to the 
 97.36  board of psychology competencies in the diagnosis and treatment 
 98.1   of mental illness; 
 98.2      (4) in psychiatry:  a physician licensed under chapter 147 
 98.3   and certified by the American Board of Psychiatry and Neurology 
 98.4   or eligible for board certification in psychiatry; 
 98.5      (5) in marriage and family therapy:  the mental health 
 98.6   professional must be a marriage and family therapist licensed 
 98.7   under sections 148B.29 to 148B.39 with at least two years of 
 98.8   post-master's supervised experience in the delivery of clinical 
 98.9   services in the treatment of mental illness; or 
 98.10     (6) in allied fields:  a person with a master's degree from 
 98.11  an accredited college or university in one of the behavioral 
 98.12  sciences or related fields, with at least 4,000 hours of 
 98.13  post-master's supervised experience in the delivery of clinical 
 98.14  services in the treatment of mental illness. 
 98.15     Sec. 8.  Minnesota Statutes 2002, section 245.464, is 
 98.16  amended by adding a subdivision to read: 
 98.17     Subd. 3.  [PUBLIC-PRIVATE PARTNERSHIPS.] The commissioner 
 98.18  may establish a mechanism by which counties, the Department of 
 98.19  Human Services, hospitals, health plans, consumers, providers, 
 98.20  and others may enter into agreements that allow for capacity 
 98.21  building and oversight of any agreed-upon entity that is 
 98.22  developed through these partnerships.  The purpose of these 
 98.23  partnerships is the development and provision of mental health 
 98.24  services which would be more effective, efficient, and 
 98.25  accessible than services that might be provided separately by 
 98.26  each partner. 
 98.27     Sec. 9.  Minnesota Statutes 2003 Supplement, section 
 98.28  245.4874, is amended to read: 
 98.29     245.4874 [DUTIES OF COUNTY BOARD.] 
 98.30     The county board in each county shall use its share of 
 98.31  mental health and Community Social Services Act funds allocated 
 98.32  by the commissioner according to a biennial children's mental 
 98.33  health component of the community social services plan that is 
 98.34  approved by the commissioner.  The county board must: 
 98.35     (1) develop a system of affordable and locally available 
 98.36  children's mental health services according to sections 245.487 
 99.1   to 245.4887; 
 99.2      (2) establish a mechanism providing for interagency 
 99.3   coordination as specified in section 245.4875, subdivision 6; 
 99.4      (3) develop a biennial children's mental health component 
 99.5   of the community social services plan which considers the 
 99.6   assessment of unmet needs in the county as reported by the local 
 99.7   children's mental health advisory council under section 
 99.8   245.4875, subdivision 5, paragraph (b), clause (3).  The county 
 99.9   shall provide, upon request of the local children's mental 
 99.10  health advisory council, readily available data to assist in the 
 99.11  determination of unmet needs; 
 99.12     (4) assure that parents and providers in the county receive 
 99.13  information about how to gain access to services provided 
 99.14  according to sections 245.487 to 245.4887; 
 99.15     (5) coordinate the delivery of children's mental health 
 99.16  services with services provided by social services, education, 
 99.17  corrections, health, and vocational agencies to improve the 
 99.18  availability of mental health services to children and the 
 99.19  cost-effectiveness of their delivery; 
 99.20     (6) assure that mental health services delivered according 
 99.21  to sections 245.487 to 245.4887 are delivered expeditiously and 
 99.22  are appropriate to the child's diagnostic assessment and 
 99.23  individual treatment plan; 
 99.24     (7) provide the community with information about predictors 
 99.25  and symptoms of emotional disturbances and how to access 
 99.26  children's mental health services according to sections 245.4877 
 99.27  and 245.4878; 
 99.28     (8) provide for case management services to each child with 
 99.29  severe emotional disturbance according to sections 245.486; 
 99.30  245.4871, subdivisions 3 and 4; and 245.4881, subdivisions 1, 3, 
 99.31  and 5; 
 99.32     (9) provide for screening of each child under section 
 99.33  245.4885 upon admission to a residential treatment facility, 
 99.34  acute care hospital inpatient treatment, or informal admission 
 99.35  to a regional treatment center; 
 99.36     (10) prudently administer grants and purchase-of-service 
100.1   contracts that the county board determines are necessary to 
100.2   fulfill its responsibilities under sections 245.487 to 245.4887; 
100.3      (11) assure that mental health professionals, mental health 
100.4   practitioners, and case managers employed by or under contract 
100.5   to the county to provide mental health services are qualified 
100.6   under section 245.4871; 
100.7      (12) assure that children's mental health services are 
100.8   coordinated with adult mental health services specified in 
100.9   sections 245.461 to 245.486 so that a continuum of mental health 
100.10  services is available to serve persons with mental illness, 
100.11  regardless of the person's age; 
100.12     (13) assure that culturally informed mental health 
100.13  consultants are used as necessary to assist the county board in 
100.14  assessing and providing appropriate treatment for children of 
100.15  cultural or racial minority heritage; and 
100.16     (14) consistent with section 245.486, arrange for or 
100.17  provide a children's mental health screening to a child 
100.18  receiving child protective services or a child in out-of-home 
100.19  placement, a child for whom parental rights have been 
100.20  terminated, a child found to be delinquent, and a child found to 
100.21  have committed a juvenile petty offense for the third or 
100.22  subsequent time, unless a screening has been performed within 
100.23  the previous 180 days, or the child is currently under the care 
100.24  of a mental health professional.  The court or county agency 
100.25  must notify a parent or guardian whose parental rights have not 
100.26  been terminated of the potential mental health screening and the 
100.27  option to prevent the screening by notifying the court or county 
100.28  agency in writing.  The screening shall be conducted with a 
100.29  screening instrument approved by the commissioner of human 
100.30  services according to criteria that are updated and issued 
100.31  annually to ensure that approved screening instruments are valid 
100.32  and useful for child welfare and juvenile justice populations, 
100.33  and shall be conducted by a mental health practitioner as 
100.34  defined in section 245.4871, subdivision 26, or a probation 
100.35  officer or local social services agency staff person who is 
100.36  trained in the use of the screening instrument.  Training in the 
101.1   use of the instrument shall include training in the 
101.2   administration of the instrument, the interpretation of its 
101.3   validity given the child's current circumstances, the state and 
101.4   federal data practices laws and confidentiality standards, the 
101.5   parental consent requirement, and providing respect for families 
101.6   and cultural values.  If the screen indicates a need for 
101.7   assessment, the child's family, or if the family lacks mental 
101.8   health insurance, the local social services agency, in 
101.9   consultation with the child's family, shall have conducted a 
101.10  diagnostic assessment, including a functional assessment, as 
101.11  defined in section 245.4871.  The administration of the 
101.12  screening shall safeguard the privacy of children receiving the 
101.13  screening and their families and shall comply with the Minnesota 
101.14  Government Data Practices Act, chapter 13, and the federal 
101.15  Health Insurance Portability and Accountability Act of 1996, 
101.16  Public Law 104-191.  Screening results shall be considered 
101.17  private data and the commissioner shall not collect individual 
101.18  screening results. 
101.19     Sec. 10.  Minnesota Statutes 2002, section 245.4881, 
101.20  subdivision 1, is amended to read: 
101.21     Subdivision 1.  [AVAILABILITY OF CASE MANAGEMENT SERVICES.] 
101.22  (a) By April 1, 1992, The county board shall provide case 
101.23  management services for each child with severe emotional 
101.24  disturbance who is a resident of the county and the child's 
101.25  family who request or consent to the services.  Case management 
101.26  services may be continued to be provided for a child with a 
101.27  serious emotional disturbance who is over the age of 18 
101.28  consistent with section 245.4875, subdivision 8.  Staffing 
101.29  ratios must be sufficient to serve the needs of the clients.  
101.30  The case manager must meet the requirements in section 245.4871, 
101.31  subdivision 4.  
101.32     (b) Except as permitted by law and the commissioner under 
101.33  demonstration projects, case management services provided to 
101.34  children with severe emotional disturbance eligible for medical 
101.35  assistance must be billed to the medical assistance program 
101.36  under sections 256B.02, subdivision 8, and 256B.0625. 
102.1      (c) Case management services are eligible for reimbursement 
102.2   under the medical assistance program.  Costs of mentoring, 
102.3   supervision, and continuing education may be included in the 
102.4   reimbursement rate methodology used for case management services 
102.5   under the medical assistance program. 
102.6      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
102.7      Sec. 11.  Minnesota Statutes 2003 Supplement, section 
102.8   246.15, is amended by adding a subdivision to read: 
102.9      Subd. 3.  [SAVINGS ACCOUNT.] The commissioner of human 
102.10  services shall create a savings account for each patient 
102.11  receiving treatment in a secure treatment facility as defined by 
102.12  section 253B.02, subdivision 18a.  The source of money to be 
102.13  deposited in this account shall come from a portion of the 
102.14  patient's share of the cost of care.  The money in this savings 
102.15  account shall be made available to the patient when the patient 
102.16  is ready to be transitioned into the community.  The money in 
102.17  the account shall be used for expenses associated with obtaining 
102.18  housing and other personal needs necessary for the patient's 
102.19  smooth transition into the community.  The savings account shall 
102.20  be called "forensic patient transition savings account." 
102.21     Sec. 12.  [246B.05] [MINNESOTA SEX OFFENDER PROGRAM; 
102.22  PRODUCTIVE DAY PROGRAM.] 
102.23     Subdivision 1.  [EMPLOYMENT OPTION.] The commissioner of 
102.24  human services, in consultation with the commissioner of 
102.25  corrections, shall develop an employment option for persons 
102.26  committed to a sexual psychopathic personality treatment center 
102.27  in order for patients to contribute to their cost of care.  The 
102.28  employment may include work maintaining the center or work that 
102.29  is brought to the center by an outside source.  The earnings 
102.30  generated must be deposited into the account created in 
102.31  subdivision 2 and divided between the participating patient and 
102.32  the center, in an effort to reduce state costs. 
102.33     Subd. 2.  [MINNESOTA SEX OFFENDER PROGRAM; PRODUCTIVE DAY 
102.34  PROGRAM ACCOUNT.] A productive day program account is created in 
102.35  the state treasury.  Money collected by the commissioner of 
102.36  human services for the program under this section must be 
103.1   deposited in this account.  Money in the account is appropriated 
103.2   to the commissioner for purposes of this section. 
103.3      Subd. 3.  [MONEY.] The commissioner has the authority to 
103.4   collect money resulting from the productive day program, and 
103.5   retain 50 percent to reimburse the state for the cost of 
103.6   administering the work program and for the purpose of reducing 
103.7   state costs associated with the Minnesota Sex Offender Program 
103.8   and return 50 percent of the earnings to the patient. 
103.9      Sec. 13.  Minnesota Statutes 2003 Supplement, section 
103.10  252.27, subdivision 2a, is amended to read: 
103.11     Subd. 2a.  [CONTRIBUTION AMOUNT.] (a) The natural or 
103.12  adoptive parents of a minor child, including a child determined 
103.13  eligible for medical assistance without consideration of 
103.14  parental income, must contribute monthly to the cost of services 
103.15  used by making monthly payments on a sliding scale based on 
103.16  income, unless the child is married or has been married, 
103.17  parental rights have been terminated, or the child's adoption is 
103.18  subsidized according to section 259.67 or through title IV-E of 
103.19  the Social Security Act. 
103.20     (b) For households with adjusted gross income equal to or 
103.21  greater than 100 percent of federal poverty guidelines, the 
103.22  parental contribution shall be computed by applying the 
103.23  following schedule of rates to the adjusted gross income of the 
103.24  natural or adoptive parents: 
103.25     (1) if the adjusted gross income is equal to or greater 
103.26  than 100 percent of federal poverty guidelines and less than 175 
103.27  percent of federal poverty guidelines, the parental contribution 
103.28  is $4 per month; 
103.29     (2) if the adjusted gross income is equal to or greater 
103.30  than 175 percent of federal poverty guidelines and less than or 
103.31  equal to 375 percent of federal poverty guidelines, the parental 
103.32  contribution shall be determined using a sliding fee scale 
103.33  established by the commissioner of human services which begins 
103.34  at one percent of adjusted gross income at 175 percent of 
103.35  federal poverty guidelines and increases to 7.5 percent of 
103.36  adjusted gross income for those with adjusted gross income up to 
104.1   375 percent of federal poverty guidelines; 
104.2      (3) if the adjusted gross income is greater than 375 
104.3   percent of federal poverty guidelines and less than 675 percent 
104.4   of federal poverty guidelines, the parental contribution shall 
104.5   be 7.5 percent of adjusted gross income; 
104.6      (4) if the adjusted gross income is equal to or greater 
104.7   than 675 percent of federal poverty guidelines and less than 975 
104.8   percent of federal poverty guidelines, the parental contribution 
104.9   shall be ten percent of adjusted gross income; and 
104.10     (5) if the adjusted gross income is equal to or greater 
104.11  than 975 percent of federal poverty guidelines, the parental 
104.12  contribution shall be 12.5 percent of adjusted gross income. 
104.13     If the child lives with the parent, the annual adjusted 
104.14  gross income is reduced by $2,400 prior to calculating the 
104.15  parental contribution.  If the child resides in an institution 
104.16  specified in section 256B.35, the parent is responsible for the 
104.17  personal needs allowance specified under that section in 
104.18  addition to the parental contribution determined under this 
104.19  section.  The parental contribution is reduced by any amount 
104.20  required to be paid directly to the child pursuant to a court 
104.21  order, but only if actually paid. 
104.22     (c) The household size to be used in determining the amount 
104.23  of contribution under paragraph (b) includes natural and 
104.24  adoptive parents and their dependents under age 21, including 
104.25  the child receiving services.  Adjustments in the contribution 
104.26  amount due to annual changes in the federal poverty guidelines 
104.27  shall be implemented on the first day of July following 
104.28  publication of the changes. 
104.29     (d) For purposes of paragraph (b), "income" means the 
104.30  adjusted gross income of the natural or adoptive parents 
104.31  determined according to the previous year's federal tax form, 
104.32  except, effective retroactive to July 1, 2003, taxable capital 
104.33  gains to the extent the funds have been used to purchase a home 
104.34  shall not be counted as income. 
104.35     (e) The contribution shall be explained in writing to the 
104.36  parents at the time eligibility for services is being 
105.1   determined.  The contribution shall be made on a monthly basis 
105.2   effective with the first month in which the child receives 
105.3   services.  Annually upon redetermination or at termination of 
105.4   eligibility, if the contribution exceeded the cost of services 
105.5   provided, the local agency or the state shall reimburse that 
105.6   excess amount to the parents, either by direct reimbursement if 
105.7   the parent is no longer required to pay a contribution, or by a 
105.8   reduction in or waiver of parental fees until the excess amount 
105.9   is exhausted. 
105.10     (f) The monthly contribution amount must be reviewed at 
105.11  least every 12 months; when there is a change in household size; 
105.12  and when there is a loss of or gain in income from one month to 
105.13  another in excess of ten percent.  The local agency shall mail a 
105.14  written notice 30 days in advance of the effective date of a 
105.15  change in the contribution amount.  A decrease in the 
105.16  contribution amount is effective in the month that the parent 
105.17  verifies a reduction in income or change in household size. 
105.18     (g) Parents of a minor child who do not live with each 
105.19  other shall each pay the contribution required under paragraph 
105.20  (a).  An amount equal to the annual court-ordered child support 
105.21  payment actually paid on behalf of the child receiving services 
105.22  shall be deducted from the adjusted gross income of the parent 
105.23  making the payment prior to calculating the parental 
105.24  contribution under paragraph (b). 
105.25     (h) The contribution under paragraph (b) shall be increased 
105.26  by an additional five percent if the local agency determines 
105.27  that insurance coverage is available but not obtained for the 
105.28  child.  For purposes of this section, "available" means the 
105.29  insurance is a benefit of employment for a family member at an 
105.30  annual cost of no more than five percent of the family's annual 
105.31  income.  For purposes of this section, "insurance" means health 
105.32  and accident insurance coverage, enrollment in a nonprofit 
105.33  health service plan, health maintenance organization, 
105.34  self-insured plan, or preferred provider organization. 
105.35     Parents who have more than one child receiving services 
105.36  shall not be required to pay more than the amount for the child 
106.1   with the highest expenditures.  There shall be no resource 
106.2   contribution from the parents.  The parent shall not be required 
106.3   to pay a contribution in excess of the cost of the services 
106.4   provided to the child, not counting payments made to school 
106.5   districts for education-related services.  Notice of an increase 
106.6   in fee payment must be given at least 30 days before the 
106.7   increased fee is due.  
106.8      (i) The contribution under paragraph (b) shall be reduced 
106.9   by $300 per fiscal year if, in the 12 months prior to July 1: 
106.10     (1) the parent applied for insurance for the child; 
106.11     (2) the insurer denied insurance; 
106.12     (3) the parents submitted a complaint or appeal, in writing 
106.13  to the insurer, submitted a complaint or appeal, in writing, to 
106.14  the commissioner of health or the commissioner of commerce, or 
106.15  litigated the complaint or appeal; and 
106.16     (4) as a result of the dispute, the insurer reversed its 
106.17  decision and granted insurance. 
106.18     For purposes of this section, "insurance" has the meaning 
106.19  given in paragraph (h). 
106.20     A parent who has requested a reduction in the contribution 
106.21  amount under this paragraph shall submit proof in the form and 
106.22  manner prescribed by the commissioner or county agency, 
106.23  including, but not limited to, the insurer's denial of 
106.24  insurance, the written letter or complaint of the parents, court 
106.25  documents, and the written response of the insurer approving 
106.26  insurance.  The determinations of the commissioner or county 
106.27  agency under this paragraph are not rules subject to chapter 14. 
106.28     Sec. 14.  Minnesota Statutes 2002, section 253B.02, is 
106.29  amended by adding a subdivision to read: 
106.30     Subd. 24.  [ADMINISTRATIVE RESTRICTION.] "Administrative 
106.31  restriction" means any measure utilized by the commissioner to 
106.32  maintain safety and security, protect possible evidence, and 
106.33  prevent the continuation of suspected criminal acts.  
106.34  Administrative restriction does not mean protective isolation as 
106.35  defined by Minnesota Rules, part 9515.3090, subpart 4.  
106.36  Administrative restriction may include increased monitoring, 
107.1   program limitations, loss of privileges, restricted access to 
107.2   and use of possessions, and separation of a patient from the 
107.3   normal living environment, as determined by the commissioner or 
107.4   the commissioner's designee.  Administrative restriction applies 
107.5   only to patients in a secure treatment facility as defined in 
107.6   subdivision 18a who:  
107.7      (1) are suspected of committing a crime or charged with a 
107.8   crime; 
107.9      (2) are the subject of a criminal investigation; 
107.10     (3) are awaiting sentencing following a conviction of a 
107.11  crime; or 
107.12     (4) are awaiting transfer to a correctional facility.  
107.13  The commissioner shall establish policies and procedures 
107.14  according to section 246.014, paragraph (d), regarding the use 
107.15  of administrative restriction.  The policies and procedures 
107.16  shall identify the implementation and termination of 
107.17  administrative restrictions.  Use of administrative restriction 
107.18  and the reason associated with the use shall be documented in 
107.19  the patient's medical record. 
107.20     Sec. 15.  Minnesota Statutes 2002, section 253B.02, is 
107.21  amended by adding a subdivision to read: 
107.22     Subd. 25.  [SAFETY.] "Safety" means protection of persons 
107.23  or property from potential danger, risk, injury, harm, or damage.
107.24     Sec. 16.  Minnesota Statutes 2002, section 253B.02, is 
107.25  amended by adding a subdivision to read: 
107.26     Subd. 26.  [SECURITY.] "Security" means the measures 
107.27  necessary to achieve the management and accountability of 
107.28  patients of the facility, staff, and visitors, as well as 
107.29  property of the facility. 
107.30     Sec. 17.  Minnesota Statutes 2002, section 253B.03, is 
107.31  amended by adding a subdivision to read: 
107.32     Subd. 1a.  [ADMINISTRATIVE RESTRICTION.] (a) A patient has 
107.33  the right to be free from unnecessary or excessive 
107.34  administrative restriction.  Administrative restriction shall 
107.35  not be used for the convenience of staff, for retaliation for 
107.36  filing complaints, or as a substitute for program treatment.  
108.1   Administrative restriction may not involve any further 
108.2   deprivation of privileges than is necessary. 
108.3      (b) Administrative restriction may include separate and 
108.4   secure housing.  
108.5      (c) Patients under administrative restriction shall not be 
108.6   limited in access to their attorney. 
108.7      (d) If a patient is placed on administrative restriction 
108.8   because the patient is suspected of committing a crime, the 
108.9   secure treatment facility must report the crime to the 
108.10  appropriate police agency within 24 hours of the beginning of 
108.11  administrative restriction.  The patient must be released from 
108.12  administrative restriction if a police agency does not begin an 
108.13  investigation within 72 hours of the report. 
108.14     (e) A patient placed on administrative restriction because 
108.15  the patient is a subject of a criminal investigation must be 
108.16  released from administrative restriction when the investigation 
108.17  is completed.  If the patient is charged with a crime following 
108.18  the investigation, administrative restriction may continue until 
108.19  the charge is disposed of. 
108.20     (f) The secure treatment facility must notify the patient's 
108.21  attorney of the patient's being placed on administrative 
108.22  restriction within 24 hours after the beginning of 
108.23  administrative restriction. 
108.24     Sec. 18.  Minnesota Statutes 2002, section 253B.185, is 
108.25  amended by adding a subdivision to read: 
108.26     Subd. 7.  [RIGHTS OF PATIENTS COMMITTED UNDER THIS 
108.27  SECTION.] (a) The commissioner or the commissioner's designee 
108.28  may limit the statutory rights described in paragraph (b) for 
108.29  patients committed to the Minnesota sex offender program under 
108.30  this section or with the commissioner's consent under section 
108.31  246B.02.  The statutory rights described in paragraph (b) may be 
108.32  limited only as necessary to maintain a therapeutic environment 
108.33  or the security of the facility or to protect the safety and 
108.34  well-being of patients, staff, and the public. 
108.35     (b) The statutory rights that may be limited in accordance 
108.36  with paragraph (a) are those set forth in section 144.651, 
109.1   subdivision 19, personal privacy; section 144.651, subdivision 
109.2   21, private communications; section 144.651, subdivision 22, 
109.3   retain and use of personal property; section 144.651, 
109.4   subdivision 25, manage personal financial affairs; section 
109.5   144.651, subdivision 26, meet with visitors and participate in 
109.6   groups; section 253B.03, subdivision 2, correspond with others; 
109.7   and section 253B.03, subdivision 3, receive visitors and make 
109.8   telephone calls.  Other statutory rights enumerated by sections 
109.9   144.651 and 253B.03, or any other law, may be limited as 
109.10  provided in those sections. 
109.11     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
109.12  following final enactment. 
109.13     Sec. 19.  Minnesota Statutes 2002, section 256.01, is 
109.14  amended by adding a subdivision to read: 
109.15     Subd. 14a.  [SINGLE BENEFIT DEMONSTRATION.] The 
109.16  commissioner may conduct a demonstration program under a federal 
109.17  Title IV-E waiver to demonstrate the impact of a single benefit 
109.18  level on the rate of permanency for children in long-term foster 
109.19  care through transfer of permanent legal custody or adoption.  
109.20  The commissioner of human services is authorized to waive 
109.21  enforcement of related statutory program requirements, rules, 
109.22  and standards in one or more counties for the purpose of this 
109.23  demonstration.  The demonstration must comply with the 
109.24  requirements of the secretary of health and human services under 
109.25  federal waiver and be cost neutral to the state. 
109.26     The commissioner may measure cost neutrality to the state 
109.27  by the same mechanism approved by the secretary of health and 
109.28  human services to measure federal cost neutrality.  The 
109.29  commissioner is authorized to accept and administer county funds 
109.30  and to transfer state and federal funds among the affected 
109.31  programs as necessary for the conduct of the demonstration. 
109.32     Sec. 20.  Minnesota Statutes 2002, section 256.01, is 
109.33  amended by adding a subdivision to read: 
109.34     Subd. 21.  [HOMELESS SERVICES.] The commissioner of human 
109.35  services may contract directly with nonprofit organizations 
109.36  providing homeless services in two or more counties. 
110.1      <b>[EFFECTIVE DATE.]</b> This section is effective immediately 
110.2   following final enactment. 
110.3      Sec. 21.  Minnesota Statutes 2002, section 256B.055, is 
110.4   amended by adding a subdivision to read: 
110.5      Subd. 10b.  [CHILDREN.] This subdivision supersedes 
110.6   subdivision 10 as long as the Minnesota health care reform 
110.7   waiver remains in effect.  When the waiver expires, the 
110.8   commissioner of human services shall publish a notice in the 
110.9   State Register and notify the revisor of statutes.  Medical 
110.10  assistance may be paid for a child less than two years of age 
110.11  with countable family income as established for infants under 
110.12  section 256B.057, subdivision 1.  
110.13     <b>[EFFECTIVE DATE.]</b> This section is effective retroactively 
110.14  from July 1, 2003. 
110.15     Sec. 22.  Minnesota Statutes 2003 Supplement, section 
110.16  256B.0596, is amended to read: 
110.17     256B.0596 [MENTAL HEALTH CASE MANAGEMENT.] 
110.18     Counties shall contract with eligible providers willing to 
110.19  provide mental health case management services under section 
110.20  256B.0625, subdivision 20.  In order to be eligible, in addition 
110.21  to general provider requirements under this chapter, the 
110.22  provider must: 
110.23     (1) be willing to provide the mental health case management 
110.24  services; and 
110.25     (2) have a minimum of at least one contact with the client 
110.26  per week.  This section is not intended to limit the ability of 
110.27  a county to provide its own mental health case management 
110.28  services. 
110.29     Sec. 23.  Minnesota Statutes 2003 Supplement, section 
110.30  256B.0622, subdivision 8, is amended to read: 
110.31     Subd. 8.  [MEDICAL ASSISTANCE PAYMENT FOR INTENSIVE 
110.32  REHABILITATIVE MENTAL HEALTH SERVICES.] (a) Payment for 
110.33  residential and nonresidential services in this section shall be 
110.34  based on one daily rate per provider inclusive of the following 
110.35  services received by an eligible recipient in a given calendar 
110.36  day:  all rehabilitative services under this section, staff 
111.1   travel time to provide rehabilitative services under this 
111.2   section, and nonresidential crisis stabilization services under 
111.3   section 256B.0624. 
111.4      (b) Except as indicated in paragraph (c), payment will not 
111.5   be made to more than one entity for each recipient for services 
111.6   provided under this section on a given day.  If services under 
111.7   this section are provided by a team that includes staff from 
111.8   more than one entity, the team must determine how to distribute 
111.9   the payment among the members. 
111.10     (c) The host county shall recommend to the commissioner one 
111.11  rate for each entity that will bill medical assistance for 
111.12  residential services under this section and two rates for each 
111.13  nonresidential provider.  The first nonresidential rate is for 
111.14  recipients who are not receiving residential services.  The 
111.15  second nonresidential rate is for recipients who are temporarily 
111.16  receiving residential services and need continued contact with 
111.17  the nonresidential team to assure timely discharge from 
111.18  residential services.  In developing these rates, the host 
111.19  county shall consider and document: 
111.20     (1) the cost for similar services in the local trade area; 
111.21     (2) actual costs incurred by entities providing the 
111.22  services; 
111.23     (3) the intensity and frequency of services to be provided 
111.24  to each recipient; 
111.25     (4) the degree to which recipients will receive services 
111.26  other than services under this section; 
111.27     (5) the costs of other services, such as case management, 
111.28  that will be separately reimbursed; and 
111.29     (6) input from the local planning process authorized by the 
111.30  adult mental health initiative under section 245.4661, regarding 
111.31  recipients' service needs. 
111.32     (d) The rate for intensive rehabilitative mental health 
111.33  services must exclude room and board, as defined in section 
111.34  256I.03, subdivision 6, and services not covered under this 
111.35  section, such as case management, partial hospitalization, home 
111.36  care, and inpatient services.  Physician services that are not 
112.1   separately billed may be included in the rate to the extent that 
112.2   a psychiatrist is a member of the treatment team.  The county's 
112.3   recommendation shall specify the period for which the rate will 
112.4   be applicable, not to exceed two years. 
112.5      (e) When services under this section are provided by an 
112.6   assertive community team, case management functions must be an 
112.7   integral part of the team.  The county must allocate costs which 
112.8   are reimbursable under this section versus costs which are 
112.9   reimbursable through case management or other reimbursement, so 
112.10  that payment is not duplicated. 
112.11     (f) The rate for a provider must not exceed the rate 
112.12  charged by that provider for the same service to other payors. 
112.13     (g) The commissioner shall approve or reject the county's 
112.14  rate recommendation, based on the commissioner's own analysis of 
112.15  the criteria in paragraph (c). 
112.16     Sec. 24.  Minnesota Statutes 2002, section 256B.0916, 
112.17  subdivision 2, is amended to read: 
112.18     Subd. 2.  [DISTRIBUTION OF FUNDS; PARTNERSHIPS.] (a) 
112.19  Beginning with fiscal year 2000, the commissioner shall 
112.20  distribute all funding available for home and community-based 
112.21  waiver services for persons with mental retardation or related 
112.22  conditions to individual counties or to groups of counties that 
112.23  form partnerships to jointly plan, administer, and authorize 
112.24  funding for eligible individuals.  The commissioner shall 
112.25  encourage counties to form partnerships that have a sufficient 
112.26  number of recipients and funding to adequately manage the risk 
112.27  and maximize use of available resources.  
112.28     (b) Counties must submit a request for funds and a plan for 
112.29  administering the program as required by the commissioner.  The 
112.30  plan must identify the number of clients to be served, their 
112.31  ages, and their priority listing based on: 
112.32     (1) requirements in Minnesota Rules, part 9525.1880; 
112.33     (2) unstable living situations due to the age or incapacity 
112.34  of the primary caregiver; 
112.35     (3) the need for services to avoid out-of-home placement of 
112.36  children; and 
113.1      (4) the need to serve persons affected by private sector 
113.2   ICF/MR closures; and 
113.3      (5) the need to serve persons whose consumer support grant 
113.4   exception amount was eliminated in 2004. 
113.5   The plan must also identify changes made to improve services to 
113.6   eligible persons and to improve program management. 
113.7      (c) In allocating resources to counties, priority must be 
113.8   given to groups of counties that form partnerships to jointly 
113.9   plan, administer, and authorize funding for eligible individuals 
113.10  and to counties determined by the commissioner to have 
113.11  sufficient waiver capacity to maximize resource use. 
113.12     (d) Within 30 days after receiving the county request for 
113.13  funds and plans, the commissioner shall provide a written 
113.14  response to the plan that includes the level of resources 
113.15  available to serve additional persons. 
113.16     (e) Counties are eligible to receive medical assistance 
113.17  administrative reimbursement for administrative costs under 
113.18  criteria established by the commissioner. 
113.19     Sec. 25.  Minnesota Statutes 2002, section 256B.49, is 
113.20  amended by adding a subdivision to read: 
113.21     Subd. 21.  [REPORT.] The commissioner shall expand on the 
113.22  annual report required under section 256B.0916, subdivision 7, 
113.23  to include information on the county of residence and financial 
113.24  responsibility, age, and major diagnoses for persons eligible 
113.25  for the home and community-based waivers authorized under 
113.26  subdivision 11 who are: 
113.27     (1) receiving those services; 
113.28     (2) screened and waiting for waiver services; and 
113.29     (3) residing in nursing facilities and are under age 65. 
113.30     Sec. 26.  Minnesota Statutes 2003 Supplement, section 
113.31  256B.69, subdivision 4, is amended to read: 
113.32     Subd. 4.  [LIMITATION OF CHOICE.] (a) The commissioner 
113.33  shall develop criteria to determine when limitation of choice 
113.34  may be implemented in the experimental counties.  The criteria 
113.35  shall ensure that all eligible individuals in the county have 
113.36  continuing access to the full range of medical assistance 
114.1   services as specified in subdivision 6.  
114.2      (b) The commissioner shall exempt the following persons 
114.3   from participation in the project, in addition to those who do 
114.4   not meet the criteria for limitation of choice:  
114.5      (1) persons eligible for medical assistance according to 
114.6   section 256B.055, subdivision 1; 
114.7      (2) persons eligible for medical assistance due to 
114.8   blindness or disability as determined by the Social Security 
114.9   Administration or the state medical review team, unless:  
114.10     (i) they are 65 years of age or older; or 
114.11     (ii) they reside in Itasca County or they reside in a 
114.12  county in which the commissioner conducts a pilot project under 
114.13  a waiver granted pursuant to section 1115 of the Social Security 
114.14  Act; 
114.15     (3) recipients who currently have private coverage through 
114.16  a health maintenance organization; 
114.17     (4) recipients who are eligible for medical assistance by 
114.18  spending down excess income for medical expenses other than the 
114.19  nursing facility per diem expense; 
114.20     (5) recipients who receive benefits under the Refugee 
114.21  Assistance Program, established under United States Code, title 
114.22  8, section 1522(e); 
114.23     (6) children who are both determined to be severely 
114.24  emotionally disturbed and receiving case management services 
114.25  according to section 256B.0625, subdivision 20; 
114.26     (7) adults who are both determined to be seriously and 
114.27  persistently mentally ill and received case management services 
114.28  according to section 256B.0625, subdivision 20; 
114.29     (8) persons eligible for medical assistance according to 
114.30  section 256B.057, subdivision 10; and 
114.31     (9) persons with access to cost-effective 
114.32  employer-sponsored private health insurance or persons enrolled 
114.33  in an individual health plan determined to be cost-effective 
114.34  according to section 256B.0625, subdivision 15.  
114.35  Children under age 21 who are in foster placement may enroll in 
114.36  the project on an elective basis.  Individuals excluded under 
115.1   clauses (1), (6), and (7) may choose to enroll on an elective 
115.2   basis.  The commissioner may enroll recipients in the prepaid 
115.3   medical assistance program for seniors who are (1) age 65 and 
115.4   over, and (2) eligible for medical assistance by spending down 
115.5   excess income. 
115.6      (c) The commissioner may allow persons with a one-month 
115.7   spenddown who are otherwise eligible to enroll to voluntarily 
115.8   enroll or remain enrolled, if they elect to prepay their monthly 
115.9   spenddown to the state.  
115.10     (d) The commissioner may require those individuals to 
115.11  enroll in the prepaid medical assistance program who otherwise 
115.12  would have been excluded under paragraph (b), clauses (1), (3), 
115.13  and (8), and under Minnesota Rules, part 9500.1452, subpart 2, 
115.14  items H, K, and L.  
115.15     (e) Before limitation of choice is implemented, eligible 
115.16  individuals shall be notified and after notification, shall be 
115.17  allowed to choose only among demonstration providers.  The 
115.18  commissioner may assign an individual with private coverage 
115.19  through a health maintenance organization, to the same health 
115.20  maintenance organization for medical assistance coverage, if the 
115.21  health maintenance organization is under contract for medical 
115.22  assistance in the individual's county of residence.  After 
115.23  initially choosing a provider, the recipient is allowed to 
115.24  change that choice only at specified times as allowed by the 
115.25  commissioner.  If a demonstration provider ends participation in 
115.26  the project for any reason, a recipient enrolled with that 
115.27  provider must select a new provider but may change providers 
115.28  without cause once more within the first 60 days after 
115.29  enrollment with the second provider. 
115.30     (f) An infant born to a woman who is eligible for and 
115.31  receiving medical assistance and who is enrolled in the prepaid 
115.32  medical assistance program shall be retroactively enrolled to 
115.33  the month of birth in the same managed care plan as the mother 
115.34  once the child is enrolled in medical assistance unless the 
115.35  child is determined to be excluded from enrollment in a prepaid 
115.36  plan under this section.  
116.1      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004, 
116.2   or upon federal approval, whichever is later.  
116.3      Sec. 27.  Minnesota Statutes 2002, section 256F.10, 
116.4   subdivision 5, is amended to read: 
116.5      Subd. 5.  [CASE MANAGERS.] Case managers are individuals 
116.6   employed by and authorized by the certified child welfare 
116.7   targeted case management provider to provide case management 
116.8   services under section 256B.094 and this section.  A case 
116.9   manager must have:  
116.10     (1) skills in identifying and assessing a wide range of 
116.11  children's needs; 
116.12     (2) knowledge of local child welfare and a variety of 
116.13  community resources and effective use of those resources for the 
116.14  benefit of the child; and 
116.15     (3) a bachelor's degree in social work, psychology, 
116.16  sociology, or a closely related field from an accredited 
116.17  four-year college or university; or a bachelor's degree from an 
116.18  accredited four-year college or university in a field other than 
116.19  social work, psychology, sociology or a closely related field, 
116.20  plus one year of experience in the delivery of social services 
116.21  to children as a supervised social worker in a public or private 
116.22  social services agency; or 
116.23     (4) been authorized to serve as a tribal child welfare case 
116.24  manager certified by a federally recognized tribal government 
116.25  within the state of Minnesota, pursuant to section 256B.02, 
116.26  subdivision 7, paragraph (c), and determined as meeting 
116.27  applicable standards. 
116.28     Sec. 28.  Minnesota Statutes 2002, section 260C.007, 
116.29  subdivision 18, is amended to read: 
116.30     Subd. 18.  [FOSTER CARE.] "Foster care" means the 24 hour a 
116.31  day care of a child in any facility which for gain or otherwise 
116.32  regularly provides one or more children, when unaccompanied by 
116.33  their parents, with a substitute for the care, food, lodging, 
116.34  training, education, supervision or treatment they need but 
116.35  which for any reason cannot be furnished by their parents or 
116.36  legal guardians in their homes. substitute care for children 
117.1   placed away from their parents or guardian and for whom a 
117.2   responsible social services agency has placement and care 
117.3   responsibility.  "Foster care" includes, but is not limited to, 
117.4   placement in foster family homes, foster homes of relatives, 
117.5   group homes, emergency shelters, residential facilities not 
117.6   excluded in this subdivision, child care institutions, and 
117.7   proadoptive homes.  A child is in foster care under this 
117.8   definition regardless of whether the facility is licensed and 
117.9   payments are made for the cost of care.  Nothing in this 
117.10  definition creates any authority to place a child in a home or 
117.11  facility that is required to be licensed which is not licensed.  
117.12  "Foster care" does not include placement in any of the following 
117.13  facilities:  hospitals, in-patient chemical dependency treatment 
117.14  facilities, facilities that are primarily for delinquent 
117.15  children, any corrections facility or program within a 
117.16  particular correction's facility not meeting requirements for 
117.17  Title IV-E facilities as determined by the commissioner, 
117.18  facilities to which a child is committed under the provision of 
117.19  chapter 253B, forestry camps, or jails. 
117.20     Sec. 29.  Minnesota Statutes 2002, section 260C.201, 
117.21  subdivision 11, is amended to read: 
117.22     Subd. 11.  [REVIEW OF COURT ORDERED PLACEMENTS; PERMANENT 
117.23  PLACEMENT DETERMINATION.] (a) Except for This subdivision and 
117.24  subdivision 11a do not apply in cases where the child is in 
117.25  placement due solely to the child's developmental disability or 
117.26  emotional disturbance, and where legal custody has not been 
117.27  transferred to the responsible social services agency, and where 
117.28  the court finds compelling reasons under section 260C.007, 
117.29  subdivision 8, to continue the child in foster care past the 
117.30  time periods specified in this subdivision.  Foster care 
117.31  placements of children due solely to their disability are 
117.32  governed by section 260C.141, subdivision 2b.  In all other 
117.33  cases where the child is in foster care or in the care of a 
117.34  noncustodial parent under subdivision 1 of this section, the 
117.35  court shall conduct a hearing to determine the permanent status 
117.36  of a child not later than 12 months after the child is 
118.1   placed out of the home of the in foster care or in the care of a 
118.2   noncustodial parent. 
118.3      For purposes of this subdivision, the date of the child's 
118.4   placement out of the home of the parent in foster care is the 
118.5   earlier of the first court-ordered placement or 60 days after 
118.6   the date on which the child has been voluntarily placed out of 
118.7   the home in foster care by the child's parent or guardian.  For 
118.8   purposes of this subdivision, time spent by a child under the 
118.9   protective supervision of the responsible social services agency 
118.10  in the home of a noncustodial parent pursuant to an order under 
118.11  subdivision 1 of this section counts towards the requirement of 
118.12  a permanency hearing under this subdivision or subdivision 11a. 
118.13     For purposes of this subdivision, 12 months is calculated 
118.14  as follows: 
118.15     (1) during the pendency of a petition alleging that a child 
118.16  is in need of protection or services, all time periods when a 
118.17  child is placed out of the home of the in foster care or in the 
118.18  home of a noncustodial parent are cumulated; 
118.19     (2) if a child has been placed out of the home of the 
118.20  parent in foster care within the previous five years under one 
118.21  or more previous petitions, the lengths of all prior time 
118.22  periods when the child was placed out of the home in foster care 
118.23  within the previous five years are cumulated.  If a child under 
118.24  this clause has been out of the home in foster care for 12 
118.25  months or more, the court, if it is in the best interests of the 
118.26  child and for compelling reasons, may extend the total time the 
118.27  child may continue out of the home under the current petition up 
118.28  to an additional six months before making a permanency 
118.29  determination.  
118.30     (b) Unless the responsible social services agency 
118.31  recommends return of the child to the custodial parent or 
118.32  parents, not later than 30 days prior to this hearing, the 
118.33  responsible social services agency shall file pleadings in 
118.34  juvenile court to establish the basis for the juvenile court to 
118.35  order permanent placement of the child according to paragraph 
118.36  (d).  Notice of the hearing and copies of the pleadings must be 
119.1   provided pursuant to section 260C.152.  If a termination of 
119.2   parental rights petition is filed before the date required for 
119.3   the permanency planning determination and there is a trial under 
119.4   section 260C.163 scheduled on that petition within 90 days of 
119.5   the filing of the petition, no hearing need be conducted under 
119.6   this subdivision.  
119.7      (c) At the conclusion of the hearing, the court shall order 
119.8   the child returned to the care of the parent or guardian from 
119.9   whom the child was removed or order a permanent placement in the 
119.10  child's best interests.  The "best interests of the child" means 
119.11  all relevant factors to be considered and evaluated.  Transfer 
119.12  of permanent legal and physical custody, termination of parental 
119.13  rights, or guardianship and legal custody to the commissioner 
119.14  through a consent to adopt are preferred permanency options for 
119.15  a child who cannot return home. 
119.16     (d) If the child is not returned to the home, the court 
119.17  must order one of the following dispositions: 
119.18     (1) permanent legal and physical custody to a relative in 
119.19  the best interests of the child according to the following 
119.20  conditions: 
119.21     (i) an order for transfer of permanent legal and physical 
119.22  custody to a relative shall only be made after the court has 
119.23  reviewed the suitability of the prospective legal and physical 
119.24  custodian; 
119.25     (ii) in transferring permanent legal and physical custody 
119.26  to a relative, the juvenile court shall follow the standards 
119.27  applicable under this chapter and chapter 260, and the 
119.28  procedures set out in the juvenile court rules; 
119.29     (iii) an order establishing permanent legal and physical 
119.30  custody under this subdivision must be filed with the family 
119.31  court; 
119.32     (iv) a transfer of legal and physical custody includes 
119.33  responsibility for the protection, education, care, and control 
119.34  of the child and decision making on behalf of the child; 
119.35     (v) the social services agency may bring a petition or 
119.36  motion naming a fit and willing relative as a proposed permanent 
120.1   legal and physical custodian.  The commissioner of human 
120.2   services shall annually prepare for counties information that 
120.3   must be given to proposed custodians about their legal rights 
120.4   and obligations as custodians together with information on 
120.5   financial and medical benefits for which the child is eligible; 
120.6   and 
120.7      (vi) the juvenile court may maintain jurisdiction over the 
120.8   responsible social services agency, the parents or guardian of 
120.9   the child, the child, and the permanent legal and physical 
120.10  custodian for purposes of ensuring appropriate services are 
120.11  delivered to the child and permanent legal custodian or for the 
120.12  purpose of ensuring conditions ordered by the court related to 
120.13  the care and custody of the child are met; 
120.14     (2) termination of parental rights according to the 
120.15  following conditions: 
120.16     (i) unless the social services agency has already filed a 
120.17  petition for termination of parental rights under section 
120.18  260C.307, the court may order such a petition filed and all the 
120.19  requirements of sections 260C.301 to 260C.328 remain applicable; 
120.20  and 
120.21     (ii) an adoption completed subsequent to a determination 
120.22  under this subdivision may include an agreement for 
120.23  communication or contact under section 259.58; 
120.24     (3) long-term foster care according to the following 
120.25  conditions: 
120.26     (i) the court may order a child into long-term foster care 
120.27  only if it finds compelling reasons that neither an award of 
120.28  permanent legal and physical custody to a relative, nor 
120.29  termination of parental rights is in the child's best interests; 
120.30  and 
120.31     (ii) further, the court may only order long-term foster 
120.32  care for the child under this section if it finds the following: 
120.33     (A) the child has reached age 12 and reasonable efforts by 
120.34  the responsible social services agency have failed to locate an 
120.35  adoptive family for the child; or 
120.36     (B) the child is a sibling of a child described in subitem 
121.1   (A) and the siblings have a significant positive relationship 
121.2   and are ordered into the same long-term foster care home; 
121.3      (4) foster care for a specified period of time according to 
121.4   the following conditions: 
121.5      (i) foster care for a specified period of time may be 
121.6   ordered only if: 
121.7      (A) the sole basis for an adjudication that the child is in 
121.8   need of protection or services is the child's behavior; 
121.9      (B) the court finds that foster care for a specified period 
121.10  of time is in the best interests of the child; and 
121.11     (C) the court finds compelling reasons that neither an 
121.12  award of permanent legal and physical custody to a relative, nor 
121.13  termination of parental rights is in the child's best interests; 
121.14     (ii) the order does not specify that the child continue in 
121.15  foster care for any period exceeding one year; or 
121.16     (5) guardianship and legal custody to the commissioner of 
121.17  human services under the following procedures and conditions: 
121.18     (i) there is an identified prospective adoptive home that 
121.19  has agreed to adopt the child and the court accepts the parent's 
121.20  voluntary consent to adopt under section 259.24; 
121.21     (ii) if the court accepts a consent to adopt in lieu of 
121.22  ordering one of the other enumerated permanency dispositions, 
121.23  the court must review the matter at least every 90 days.  The 
121.24  review will address the reasonable efforts of the agency to 
121.25  achieve a finalized adoption; 
121.26     (iii) a consent to adopt under this clause vests all legal 
121.27  authority regarding the child, including guardianship and legal 
121.28  custody of the child, with the commissioner of human services as 
121.29  if the child were a state ward after termination of parental 
121.30  rights; 
121.31     (iv) the court must forward a copy of the consent to adopt, 
121.32  together with a certified copy of the order transferring 
121.33  guardianship and legal custody to the commissioner, to the 
121.34  commissioner; and 
121.35     (v) if an adoption is not finalized by the identified 
121.36  prospective adoptive parent within 12 months of the execution of 
122.1   the consent to adopt under this clause, the commissioner of 
122.2   human services or the commissioner's delegate shall pursue 
122.3   adoptive placement in another home unless the commissioner 
122.4   certifies that the failure to finalize is not due to either an 
122.5   action or a failure to act by the prospective adoptive parent. 
122.6      (e) In ordering a permanent placement of a child, the court 
122.7   must be governed by the best interests of the child, including a 
122.8   review of the relationship between the child and relatives and 
122.9   the child and other important persons with whom the child has 
122.10  resided or had significant contact. 
122.11     (f) Once a permanent placement determination has been made 
122.12  and permanent placement has been established, further court 
122.13  reviews are necessary if: 
122.14     (1) the placement is long-term foster care or foster care 
122.15  for a specified period of time; 
122.16     (2) the court orders further hearings because it has 
122.17  retained jurisdiction of a transfer of permanent legal and 
122.18  physical custody matter; 
122.19     (3) an adoption has not yet been finalized; or 
122.20     (4) there is a disruption of the permanent or long-term 
122.21  placement.  
122.22     (g) Court reviews of an order for long-term foster care, 
122.23  whether under this section or section 260C.317, subdivision 3, 
122.24  paragraph (d), or foster care for a specified period of time 
122.25  must be conducted at least yearly and must review the child's 
122.26  out-of-home placement plan and the reasonable efforts of the 
122.27  agency to: 
122.28     (1) identify a specific long-term foster home for the child 
122.29  or a specific foster home for the time the child is specified to 
122.30  be out of the care of the parent, if one has not already been 
122.31  identified; 
122.32     (2) support continued placement of the child in the 
122.33  identified home, if one has been identified; 
122.34     (3) ensure appropriate services are provided to the child 
122.35  during the period of long-term foster care or foster care for a 
122.36  specified period of time; 
123.1      (4) plan for the child's independence upon the child's 
123.2   leaving long-term foster care living as required under section 
123.3   260C.212, subdivision 1; and 
123.4      (5) where placement is for a specified period of time, a 
123.5   plan for the safe return of the child to the care of the parent. 
123.6      (h) An order under this subdivision must include the 
123.7   following detailed findings: 
123.8      (1) how the child's best interests are served by the order; 
123.9      (2) the nature and extent of the responsible social service 
123.10  agency's reasonable efforts, or, in the case of an Indian child, 
123.11  active efforts to reunify the child with the parent or parents; 
123.12     (3) the parent's or parents' efforts and ability to use 
123.13  services to correct the conditions which led to the out-of-home 
123.14  placement; and 
123.15     (4) whether the conditions which led to the out-of-home 
123.16  placement have been corrected so that the child can return home. 
123.17     (i) An order for permanent legal and physical custody of a 
123.18  child may be modified under sections 518.18 and 518.185.  The 
123.19  social services agency is a party to the proceeding and must 
123.20  receive notice.  A parent may only seek modification of an order 
123.21  for long-term foster care upon motion and a showing by the 
123.22  parent of a substantial change in the parent's circumstances 
123.23  such that the parent could provide appropriate care for the 
123.24  child and that removal of the child from the child's permanent 
123.25  placement and the return to the parent's care would be in the 
123.26  best interest of the child. 
123.27     (j) The court shall issue an order required under this 
123.28  section within 15 days of the close of the proceedings.  The 
123.29  court may extend issuing the order an additional 15 days when 
123.30  necessary in the interests of justice and the best interests of 
123.31  the child. 
123.32     Sec. 30.  Minnesota Statutes 2002, section 260C.212, 
123.33  subdivision 5, is amended to read: 
123.34     Subd. 5.  [RELATIVE SEARCH; NATURE.] (a) In implementing 
123.35  the requirement that the responsible social services agency must 
123.36  consider placement with a relative under subdivision 2 as soon 
124.1   as possible without delay after identifying the need for 
124.2   placement of the child in foster care, the responsible social 
124.3   services agency shall identify relatives of the child and notify 
124.4   them of the need for a foster care home for the child and of the 
124.5   possibility of the need for a permanent out-of-home placement of 
124.6   the child.  The relative search required by this section shall 
124.7   be reasonable and comprehensive in scope and may last up to six 
124.8   months or until a fit and willing relative is 
124.9   identified.  Relatives should be notified that a decision not to 
124.10  be a placement resource at the beginning of the case may affect 
124.11  the relative being considered for placement of the child with 
124.12  that relative later The relative search required by this section 
124.13  shall include both maternal relatives of the child and paternal 
124.14  relatives of the child, if paternity is adjudicated.  The 
124.15  relatives must be notified that they must keep the responsible 
124.16  social services agency informed of their current address in 
124.17  order to receive notice that a permanent placement is being 
124.18  sought for the child.  A relative who fails to provide a current 
124.19  address to the responsible social services agency forfeits the 
124.20  right to notice of the possibility of permanent placement.  A 
124.21  decision by a relative not to be a placement resource at the 
124.22  beginning of the case shall not affect whether the relative is 
124.23  considered for placement of the child with that relative later. 
124.24     (b) A responsible social services agency may disclose 
124.25  private or confidential data, as defined in section 13.02, to 
124.26  relatives of the child for the purpose of locating a suitable 
124.27  placement.  The agency shall disclose only data that is 
124.28  necessary to facilitate possible placement with relatives.  If 
124.29  the child's parent refuses to give the responsible social 
124.30  services agency information sufficient to identify the maternal 
124.31  and paternal relatives of the child, the agency shall determine 
124.32  whether the parent's refusal is in the child's best interests.  
124.33  If the agency determines the parent's refusal is not in the 
124.34  child's best interests, the agency shall file a petition under 
124.35  section 260C.141, and shall ask the juvenile court to order the 
124.36  parent to provide the necessary information.  If a parent makes 
125.1   an explicit request that relatives or a specific relative not be 
125.2   contacted or considered for placement, the agency shall bring 
125.3   the parent's request to the attention of the court to determine 
125.4   whether the parent's request is consistent with the best 
125.5   interests of the child and the agency shall not contact 
125.6   relatives or a specific relative unless authorized to do so by 
125.7   the juvenile court. 
125.8      (c) When the placing agency determines that a permanent 
125.9   placement hearing is necessary because there is a likelihood 
125.10  that the child will not return to a parent's care, the agency 
125.11  may send the notice provided in paragraph (d), may ask the court 
125.12  to modify the requirements of the agency under this paragraph, 
125.13  or may ask the court to completely relieve the agency of the 
125.14  requirements of this paragraph.  The relative notification 
125.15  requirements of this paragraph do not apply when the child is 
125.16  placed with an appropriate relative or a foster home that has 
125.17  committed to being the permanent legal placement for the child 
125.18  and the agency approves of that foster home for permanent 
125.19  placement of the child.  The actions ordered by the court under 
125.20  this section must be consistent with the best interests, safety, 
125.21  and welfare of the child. 
125.22     (d) Unless required under the Indian Child Welfare Act or 
125.23  relieved of this duty by the court under paragraph (c), when the 
125.24  agency determines that it is necessary to prepare for the 
125.25  permanent placement determination hearing, or in anticipation of 
125.26  filing a termination of parental rights petition, the agency 
125.27  shall send notice to the relatives, any adult with whom the 
125.28  child is currently residing, any adult with whom the child has 
125.29  resided for one year or longer in the past, and any adults who 
125.30  have maintained a relationship or exercised visitation with the 
125.31  child as identified in the agency case plan.  The notice must 
125.32  state that a permanent home is sought for the child and that the 
125.33  individuals receiving the notice may indicate to the agency 
125.34  their interest in providing a permanent home.  The notice must 
125.35  state that within 30 days of receipt of the notice an individual 
125.36  receiving the notice must indicate to the agency the 
126.1   individual's interest in providing a permanent home for the 
126.2   child or that the individual may lose the opportunity to be 
126.3   considered for a permanent placement.  
126.4      (e) The Department of Human Services shall develop a best 
126.5   practices guide and specialized staff training to assist the 
126.6   responsible social services agency in performing and complying 
126.7   with the relative search requirements under this subdivision. 
126.8      Sec. 31.  [LEAD REDUCTION STUDY.] 
126.9      The commissioner of health, in consultation with the 
126.10  Department of Employment and Economic Development, the Minnesota 
126.11  Housing Finance Agency, and the Department of Human Services, 
126.12  shall develop and evaluate the best strategies to reduce the 
126.13  number of children endangered by lead paint.  The study shall 
126.14  examine:  
126.15     (1) how to promote and encourage primary prevention; 
126.16     (2) how to ensure that all children at risk are tested; 
126.17     (3) whether or not to reduce the state mandatory 
126.18  intervention from 20 to ten micrograms of lead per deciliter of 
126.19  whole blood and if a reduction is not recommended whether to 
126.20  develop guidelines on intervention for children with blood 
126.21  levels between ten and 20 micrograms of lead per deciliter of 
126.22  whole blood; 
126.23     (4) how to provide incentives and funding support to 
126.24  property owners for lead hazard prevention and reduction; and 
126.25     (5) ways to provide resources for local jurisdictions to 
126.26  conduct outreach.  
126.27  The commissioner shall submit the results of the study and any 
126.28  recommendations, including any necessary legislative changes to 
126.29  the legislature by January 15, 2005.  
126.30     Sec. 32.  [CONSUMER-DIRECTED COMMUNITY SUPPORT EVALUATION.] 
126.31     The commissioner of human services, in consultation with 
126.32  interested stakeholders, including representatives of consumers, 
126.33  families, guardians, advocacy groups, counties, and providers, 
126.34  shall evaluate the new consumer-directed community support 
126.35  option under the home and community-based waiver programs, as 
126.36  required by the federal Center for Medicare and Medicaid 
127.1   Services.  The evaluation shall include, but not be limited to, 
127.2   an examination of whether any current consumer-directed option 
127.3   participants will have their funding reduced so significantly 
127.4   that their health, safety, and welfare at home will be 
127.5   jeopardized, and whether replacement services will cost more or 
127.6   be of lower quality than their current consumer-directed 
127.7   services.  The preliminary findings of the evaluation shall be 
127.8   provided to the house and senate committees with jurisdiction 
127.9   over human services policy and finance by February 15, 2005. 
127.10     Sec. 33.  [REPEALER.] 
127.11     Laws 2003, First Special Session chapter 14, article 3, 
127.12  section 56, is repealed effective immediately following final 
127.13  enactment. 
127.14                             ARTICLE 4
127.15            CHILD CARE; MINNESOTA FAMILY INVESTMENT PLAN
127.16     Section 1.  Minnesota Statutes 2003 Supplement, section 
127.17  119B.011, subdivision 6, is amended to read: 
127.18     Subd. 6.  [CHILD CARE FUND.] "Child care fund" means a 
127.19  program under this chapter providing:  
127.20     (1) financial assistance for child care to parents engaged 
127.21  in employment, job search, or education and training leading to 
127.22  employment, or an at-home infant child care subsidy; and 
127.23     (2) grants to develop, expand, and improve the access and 
127.24  availability of child care services statewide. 
127.25     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
127.26     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
127.27  119B.011, subdivision 8, is amended to read: 
127.28     Subd. 8.  [COMMISSIONER.] "Commissioner" means the 
127.29  commissioner of education human services. 
127.30     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
127.31  119B.011, subdivision 10, is amended to read: 
127.32     Subd. 10.  [DEPARTMENT.] "Department" means the Department 
127.33  of Education Human Services. 
127.34     Sec. 4.  Minnesota Statutes 2002, section 119B.011, is 
127.35  amended by adding a subdivision to read: 
127.36     Subd. 10a.  [DIVERSIONARY WORK PROGRAM.] "Diversionary work 
128.1   program" means the program established under section 256J.95. 
128.2      Sec. 5.  Minnesota Statutes 2003 Supplement, section 
128.3   119B.011, subdivision 15, is amended to read: 
128.4      Subd. 15.  [INCOME.] "Income" means earned or unearned 
128.5   income received by all family members, including public 
128.6   assistance cash benefits and at-home infant child care subsidy 
128.7   payments, unless specifically excluded and child support and 
128.8   maintenance distributed to the family under section 256.741, 
128.9   subdivision 15.  The following are excluded from income:  funds 
128.10  used to pay for health insurance premiums for family members, 
128.11  Supplemental Security Income, scholarships, work-study income, 
128.12  and grants that cover costs or reimbursement for tuition, fees, 
128.13  books, and educational supplies; student loans for tuition, 
128.14  fees, books, supplies, and living expenses; state and federal 
128.15  earned income tax credits; assistance specifically excluded as 
128.16  income by law; in-kind income such as food support, energy 
128.17  assistance, foster care assistance, medical assistance, child 
128.18  care assistance, and housing subsidies; earned income of 
128.19  full-time or part-time students up to the age of 19, who have 
128.20  not earned a high school diploma or GED high school equivalency 
128.21  diploma including earnings from summer employment; grant awards 
128.22  under the family subsidy program; nonrecurring lump sum income 
128.23  only to the extent that it is earmarked and used for the purpose 
128.24  for which it is paid; and any income assigned to the public 
128.25  authority according to section 256.741. 
128.26     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
128.27     Sec. 6.  Minnesota Statutes 2003 Supplement, section 
128.28  119B.011, subdivision 20, is amended to read: 
128.29     Subd. 20.  [TRANSITION YEAR FAMILIES.] (a) "Transition year 
128.30  families" means families who have received MFIP assistance, or 
128.31  who were eligible to receive MFIP assistance after choosing to 
128.32  discontinue receipt of the cash portion of MFIP assistance under 
128.33  section 256J.31, subdivision 12, or families who have received 
128.34  DWP assistance under section 256J.95 for at least three of the 
128.35  last six months before losing eligibility for MFIP or DWP.  
128.36  Transition year child care may be used to support employment or 
129.1   job search. Transition year child care is not available to 
129.2   families who have been disqualified from MFIP or DWP due to 
129.3   fraud.  
129.4      (b) Subd. 20a.  [TRANSITION YEAR EXTENSION FAMILIES.] 
129.5   "Transition year extension year families" means families who 
129.6   have completed their transition year of child care assistance 
129.7   under this subdivision and who are eligible for, but on a 
129.8   waiting list for, services under section 119B.03.  For purposes 
129.9   of sections 119B.03, subdivision 3, and 119B.05, subdivision 1, 
129.10  clause (2), families participating in extended transition year 
129.11  shall not be considered transition year families.  Transition 
129.12  year extension child care may be used to support employment or a 
129.13  job search that meets the requirements of section 119B.10 for 
129.14  the length of time necessary for families to be moved from the 
129.15  basic sliding fee waiting list into the basic sliding fee 
129.16  program.  
129.17     Sec. 7.  Minnesota Statutes 2002, section 119B.02, 
129.18  subdivision 4, is amended to read: 
129.19     Subd. 4.  [UNIVERSAL APPLICATION FORM.] The commissioner 
129.20  must develop and make available to all counties a universal 
129.21  application form for child care assistance under this 
129.22  chapter.  The commissioner may develop and make available to all 
129.23  counties a child care addendum form to be used to supplement the 
129.24  combined application form for MFIP, DWP, or Food Support or to 
129.25  supplement other statewide application forms for public 
129.26  assistance programs for families applying for one of these 
129.27  programs in addition to child care assistance.  The application 
129.28  must provide notice of eligibility requirements for assistance 
129.29  and penalties for wrongfully obtaining assistance. 
129.30     Sec. 8.  Minnesota Statutes 2002, section 119B.03, 
129.31  subdivision 3, is amended to read: 
129.32     Subd. 3.  [ELIGIBLE PARTICIPANTS.] Families that meet the 
129.33  eligibility requirements under sections 119B.07, 119B.09, and 
129.34  119B.10, except MFIP participants, work first 
129.35  participants diversionary work program, and transition year 
129.36  families are eligible for child care assistance under the basic 
130.1   sliding fee program.  Families enrolled in the basic sliding fee 
130.2   program shall be continued until they are no longer eligible.  
130.3   Child care assistance provided through the child care fund is 
130.4   considered assistance to the parent. 
130.5      Sec. 9.  Minnesota Statutes 2003 Supplement, section 
130.6   119B.03, subdivision 4, is amended to read: 
130.7      Subd. 4.  [FUNDING PRIORITY.] (a) First priority for child 
130.8   care assistance under the basic sliding fee program must be 
130.9   given to eligible non-MFIP families who do not have a high 
130.10  school or general equivalency diploma or who need remedial and 
130.11  basic skill courses in order to pursue employment or to pursue 
130.12  education leading to employment and who need child care 
130.13  assistance to participate in the education program.  Within this 
130.14  priority, the following subpriorities must be used: 
130.15     (1) child care needs of minor parents; 
130.16     (2) child care needs of parents under 21 years of age; and 
130.17     (3) child care needs of other parents within the priority 
130.18  group described in this paragraph. 
130.19     (b) Second priority must be given to parents who have 
130.20  completed their MFIP or work first DWP transition year, or 
130.21  parents who are no longer receiving or eligible for diversionary 
130.22  work program supports. 
130.23     (c) Third priority must be given to families who are 
130.24  eligible for portable basic sliding fee assistance through the 
130.25  portability pool under subdivision 9. 
130.26     (d) Families under paragraph (b) must be added to the basic 
130.27  sliding fee waiting list on the date they begin the transition 
130.28  year under section 119B.011, subdivision 20, and must be moved 
130.29  into the basic sliding fee program as soon as possible after 
130.30  they complete their transition year.  
130.31     Sec. 10.  Minnesota Statutes 2002, section 119B.03, 
130.32  subdivision 6a, is amended to read: 
130.33     Subd. 6a.  [ALLOCATION DUE TO INCREASED FUNDING.] When 
130.34  funding increases are implemented within a calendar year, every 
130.35  county must receive an allocation at least equal and 
130.36  proportionate to its original allocation for the same time 
131.1   period.  The remainder of the allocation must be recalculated to 
131.2   reflect the funding increase, according to formulas identified 
131.3   in subdivision 6. 
131.4      Sec. 11.  Minnesota Statutes 2002, section 119B.03, is 
131.5   amended by adding a subdivision to read: 
131.6      Subd. 6b.  [ALLOCATION DUE TO DECREASED FUNDING.] When 
131.7   funding decreases are implemented within a calendar year, county 
131.8   allocations must be reduced in an amount proportionate to the 
131.9   reduction in the total allocation for the same time period.  
131.10  This applies when a funding decrease necessitates the revision 
131.11  of an existing calendar year allocation. 
131.12     Sec. 12.  [119B.035] [AT-HOME INFANT CHILD CARE PROGRAM.] 
131.13     Subdivision 1.  [ESTABLISHMENT.] A family in which a parent 
131.14  provides care for the family's infant child may receive a 
131.15  subsidy in lieu of assistance if the family is eligible for or 
131.16  is receiving assistance under the basic sliding fee program.  An 
131.17  eligible family must meet the eligibility factors under section 
131.18  119B.09, except as provided in subdivision 4, and the 
131.19  requirements of this section.  Subject to federal match and 
131.20  maintenance of effort requirements for the child care and 
131.21  development fund, the commissioner shall establish a pool of up 
131.22  to three percent of the annual appropriation for the basic 
131.23  sliding fee program to provide assistance under the at-home 
131.24  infant child care program and for administrative costs 
131.25  associated with the program.  At the end of a fiscal year, the 
131.26  commissioner may carry forward any unspent funds under this 
131.27  section to the next fiscal year within the same biennium for 
131.28  assistance under the basic sliding fee program. 
131.29     Subd. 2.  [ELIGIBLE FAMILIES.] A family with an infant 
131.30  under the age of one year is eligible for assistance if: 
131.31     (1) the family is not receiving MFIP, other cash 
131.32  assistance, or other child care assistance; 
131.33     (2) the family has not previously received a life-long 
131.34  total of 12 months of assistance under this section; and 
131.35     (3) the family is participating in the basic sliding fee 
131.36  program or provides verification of participating in an 
132.1   authorized activity at the time of application and meets the 
132.2   program requirements. 
132.3      Subd. 3.  [ELIGIBLE PARENT.] A family is eligible for 
132.4   assistance under this section if one parent cares for the 
132.5   family's infant child.  The eligible parent must: 
132.6      (1) be over the age of 18; 
132.7      (2) care for the infant full time in the infant's home; and 
132.8      (3) care for any other children in the family who are 
132.9   eligible for child care assistance under this chapter. 
132.10     For purposes of this section, "parent" means birth parent, 
132.11  adoptive parent, or stepparent. 
132.12     Subd. 4.  [ASSISTANCE.] (a) A family is limited to a 
132.13  lifetime total of 12 months of assistance under subdivision 2.  
132.14  The maximum rate of assistance is equal to 90 percent of the 
132.15  rate established under section 119B.13 for care of infants in 
132.16  licensed family child care in the applicant's county of 
132.17  residence.  
132.18     (b) A participating family must report income and other 
132.19  family changes as specified in the county's plan under section 
132.20  119B.08, subdivision 3. 
132.21     (c) Persons who are admitted to the at-home infant child 
132.22  care program retain their position in any basic sliding fee 
132.23  program.  Persons leaving the at-home infant child care program 
132.24  reenter the basic sliding fee program at the position they would 
132.25  have occupied. 
132.26     (d) Assistance under this section does not establish an 
132.27  employer-employee relationship between any member of the 
132.28  assisted family and the county or state. 
132.29     Subd. 5.  [IMPLEMENTATION.] The commissioner shall 
132.30  implement the at-home infant child care program under this 
132.31  section through counties that administer the basic sliding fee 
132.32  program under section 119B.03.  The commissioner must develop 
132.33  and distribute consumer information on the at-home infant child 
132.34  care program to assist parents of infants or expectant parents 
132.35  in making informed child care decisions. 
132.36     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
133.1      Sec. 13.  Minnesota Statutes 2003 Supplement, section 
133.2   119B.05, subdivision 1, is amended to read: 
133.3      Subdivision 1.  [ELIGIBLE PARTICIPANTS.] Families eligible 
133.4   for child care assistance under the MFIP child care program are: 
133.5      (1) MFIP participants who are employed or in job search and 
133.6   meet the requirements of section 119B.10; 
133.7      (2) persons who are members of transition year families 
133.8   under section 119B.011, subdivision 20, and meet the 
133.9   requirements of section 119B.10; 
133.10     (3) families who are participating in employment 
133.11  orientation or job search, or other employment or training 
133.12  activities that are included in an approved employability 
133.13  development plan under chapter 256K section 256J.95; 
133.14     (4) MFIP families who are participating in work job search, 
133.15  job support, employment, or training activities as required in 
133.16  their job search support or employment plan, or in appeals, 
133.17  hearings, assessments, or orientations according to chapter 
133.18  256J; 
133.19     (5) MFIP families who are participating in social services 
133.20  activities under chapter 256J or 256K as required in their 
133.21  employment plan approved according to chapter 256J or 256K; 
133.22     (6) families who are participating in programs as required 
133.23  in tribal contracts under section 119B.02, subdivision 2, or 
133.24  256.01, subdivision 2; and 
133.25     (7) families who are participating in the transition year 
133.26  extension under section 119B.011, subdivision 20, paragraph 
133.27  (a) 20a. 
133.28     Sec. 14.  Minnesota Statutes 2003 Supplement, section 
133.29  119B.09, subdivision 7, is amended to read: 
133.30     Subd. 7.  [DATE OF ELIGIBILITY FOR ASSISTANCE.] (a) The 
133.31  date of eligibility for child care assistance under this chapter 
133.32  is the later of the date the application was signed; the 
133.33  beginning date of employment, education, or training; the date 
133.34  the infant is born for applicants to the at-home infant care 
133.35  program; or the date a determination has been made that the 
133.36  applicant is a participant in employment and training services 
134.1   under Minnesota Rules, part 3400.0080, subpart 2a, or chapter 
134.2   256J or 256K.  
134.3      (b) Payment ceases for a family under the at-home infant 
134.4   child care program when a family has used a total of 12 months 
134.5   of assistance as specified under section 119B.035.  Payment of 
134.6   child care assistance for employed persons on MFIP is effective 
134.7   the date of employment or the date of MFIP eligibility, 
134.8   whichever is later.  Payment of child care assistance for MFIP 
134.9   or work first DWP participants in employment and training 
134.10  services is effective the date of commencement of the services 
134.11  or the date of MFIP or work first DWP eligibility, whichever is 
134.12  later.  Payment of child care assistance for transition year 
134.13  child care must be made retroactive to the date of eligibility 
134.14  for transition year child care. 
134.15     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
134.16     Sec. 15.  Minnesota Statutes 2003 Supplement, section 
134.17  119B.12, subdivision 2, is amended to read: 
134.18     Subd. 2.  [PARENT FEE.] A family must be assessed a parent 
134.19  fee for each service period.  A family's parent fee must be a 
134.20  fixed percentage of its annual gross income.  Parent fees must 
134.21  apply to families eligible for child care assistance under 
134.22  sections 119B.03 and 119B.05.  Income must be as defined in 
134.23  section 119B.011, subdivision 15.  The fixed percent is based on 
134.24  the relationship of the family's annual gross income to 100 
134.25  percent of the annual federal poverty guidelines.  Parent fees 
134.26  must begin at 75 percent of the poverty level.  The minimum 
134.27  parent fees for families between 75 percent and 100 percent of 
134.28  poverty level must be $10 per month.  Parent fees must provide 
134.29  for graduated movement to full payment. 
134.30     Sec. 16.  Minnesota Statutes 2003 Supplement, section 
134.31  119B.125, subdivision 1, is amended to read: 
134.32     Subdivision 1.  [AUTHORIZATION.] Except as provided in 
134.33  subdivision 5, a county must authorize the provider chosen by an 
134.34  applicant or a participant before the county can authorize 
134.35  payment for care provided by that provider.  The commissioner 
134.36  must establish the requirements necessary for authorization of 
135.1   providers.  A provider must be reauthorized every two years.  A 
135.2   legal, nonlicensed family child care provider also must be 
135.3   reauthorized when another person over the age of 13 joins the 
135.4   household, a current household member turns 13, or there is 
135.5   reason to believe that a household member has a factor that 
135.6   prevents authorization.  The provider is required to report all 
135.7   family changes that would require reauthorization.  When a 
135.8   provider has been authorized for payment for providing care for 
135.9   families in more than one county, the county responsible for 
135.10  reauthorization of that provider is the county of the family 
135.11  with a current authorization for that provider and who has used 
135.12  the provider for the longest length of time. 
135.13     Sec. 17.  Minnesota Statutes 2003 Supplement, section 
135.14  119B.125, subdivision 2, is amended to read: 
135.15     Subd. 2.  [PERSONS WHO CANNOT BE AUTHORIZED.] (a) A person 
135.16  who meets any of the conditions under paragraphs (b) to (n) must 
135.17  not be authorized as a legal nonlicensed family child care 
135.18  provider.  To determine whether any of the listed conditions 
135.19  exist, the county must request information about the provider 
135.20  from the Bureau of Criminal Apprehension, the juvenile courts, 
135.21  and social service agencies.  When one of the listed entities 
135.22  does not maintain information on a statewide basis, the county 
135.23  must contact the entity in the county where the provider resides 
135.24  and any other county in which the provider previously resided in 
135.25  the past year.  For purposes of this subdivision, a finding that 
135.26  a delinquency petition is proven in juvenile court must be 
135.27  considered a conviction in state district court.  If a county 
135.28  has determined that a provider is able to be authorized in that 
135.29  county, and a family in another county later selects that 
135.30  provider, the provider is able to be authorized in the second 
135.31  county without undergoing a new background investigation unless 
135.32  one of the following conditions exists: 
135.33     (1) two years have passed since the first authorization; 
135.34     (2) another person age 13 or older has joined the 
135.35  provider's household since the last authorization; 
135.36     (3) a current household member has turned 13 since the last 
136.1   authorization; or 
136.2      (4) there is reason to believe that a household member has 
136.3   a factor that prevents authorization. 
136.4      (b) The person has been convicted of one of the following 
136.5   offenses or has admitted to committing or a preponderance of the 
136.6   evidence indicates that the person has committed an act that 
136.7   meets the definition of one of the following offenses:  sections 
136.8   609.185 to 609.195, murder in the first, second, or third 
136.9   degree; 609.2661 to 609.2663, murder of an unborn child in the 
136.10  first, second, or third degree; 609.322, solicitation, 
136.11  inducement, or promotion of prostitution; 609.323, receiving 
136.12  profit from prostitution; 609.342 to 609.345, criminal sexual 
136.13  conduct in the first, second, third, or fourth degree; 609.352, 
136.14  solicitation of children to engage in sexual conduct; 609.365, 
136.15  incest; 609.377, felony malicious punishment of a child; 
136.16  617.246, use of minors in sexual performance; 617.247, 
136.17  possession of pictorial representation of a minor; 609.2242 to 
136.18  609.2243, felony domestic assault; a felony offense of spousal 
136.19  abuse; a felony offense of child abuse or neglect; a felony 
136.20  offense of a crime against children; or an attempt or conspiracy 
136.21  to commit any of these offenses as defined in Minnesota 
136.22  Statutes; or an offense in any other state or country where the 
136.23  elements are substantially similar to any of the offenses listed 
136.24  in this paragraph. 
136.25     (c) Less than 15 years have passed since the discharge of 
136.26  the sentence imposed for the offense and the person has received 
136.27  a felony conviction for one of the following offenses, or the 
136.28  person has admitted to committing or a preponderance of the 
136.29  evidence indicates that the person has committed an act that 
136.30  meets the definition of a felony conviction for one of the 
136.31  following offenses:  sections 609.20 to 609.205, manslaughter in 
136.32  the first or second degree; 609.21, criminal vehicular homicide; 
136.33  609.215, aiding suicide or aiding attempted suicide; 609.221 to 
136.34  609.2231, assault in the first, second, third, or fourth degree; 
136.35  609.224, repeat offenses of fifth degree assault; 609.228, great 
136.36  bodily harm caused by distribution of drugs; 609.2325, criminal 
137.1   abuse of a vulnerable adult; 609.2335, financial exploitation of 
137.2   a vulnerable adult; 609.235, use of drugs to injure or 
137.3   facilitate a crime; 609.24, simple robbery; 617.241, repeat 
137.4   offenses of obscene materials and performances; 609.245, 
137.5   aggravated robbery; 609.25, kidnapping; 609.255, false 
137.6   imprisonment; 609.2664 to 609.2665, manslaughter of an unborn 
137.7   child in the first or second degree; 609.267 to 609.2672, 
137.8   assault of an unborn child in the first, second, or third 
137.9   degree; 609.268, injury or death of an unborn child in the 
137.10  commission of a crime; 609.27, coercion; 609.275, attempt to 
137.11  coerce; 609.324, subdivision 1, other prohibited acts, minor 
137.12  engaged in prostitution; 609.3451, repeat offenses of criminal 
137.13  sexual conduct in the fifth degree; 609.378, neglect or 
137.14  endangerment of a child; 609.52, theft; 609.521, possession of 
137.15  shoplifting gear; 609.561 to 609.563, arson in the first, 
137.16  second, or third degree; 609.582, burglary in the first, second, 
137.17  third, or fourth degree; 609.625, aggravated forgery; 609.63, 
137.18  forgery; 609.631, check forgery, offering a forged check; 
137.19  609.635, obtaining signature by false pretenses; 609.66, 
137.20  dangerous weapon; 609.665, setting a spring gun; 609.67, 
137.21  unlawfully owning, possessing, or operating a machine gun; 
137.22  609.687, adulteration; 609.71, riot; 609.713, terrorist threats; 
137.23  609.749, harassment, stalking; 260.221, grounds for termination 
137.24  of parental rights; 152.021 to 152.022, controlled substance 
137.25  crime in the first or second degree; 152.023, subdivision 1, 
137.26  clause (3) or (4), or 152.023, subdivision 2, clause (4), 
137.27  controlled substance crime in third degree; 152.024, subdivision 
137.28  1, clause (2), (3), or (4), controlled substance crime in fourth 
137.29  degree; 617.23, repeat offenses of indecent exposure; an attempt 
137.30  or conspiracy to commit any of these offenses as defined in 
137.31  Minnesota Statutes; or an offense in any other state or country 
137.32  where the elements are substantially similar to any of the 
137.33  offenses listed in this paragraph. 
137.34     (d) Less than ten years have passed since the discharge of 
137.35  the sentence imposed for the offense and the person has received 
137.36  a gross misdemeanor conviction for one of the following offenses 
138.1   or the person has admitted to committing or a preponderance of 
138.2   the evidence indicates that the person has committed an act that 
138.3   meets the definition of a gross misdemeanor conviction for one 
138.4   of the following offenses:  sections 609.224, fifth degree 
138.5   assault; 609.2242 to 609.2243, domestic assault; 518B.01, 
138.6   subdivision 14, violation of an order for protection; 609.3451, 
138.7   fifth degree criminal sexual conduct; 609.746, repeat offenses 
138.8   of interference with privacy; 617.23, repeat offenses of 
138.9   indecent exposure; 617.241, obscene materials and performances; 
138.10  617.243, indecent literature, distribution; 617.293, 
138.11  disseminating or displaying harmful material to minors; 609.71, 
138.12  riot; 609.66, dangerous weapons; 609.749, harassment, stalking; 
138.13  609.224, subdivision 2, paragraph (c), fifth degree assault 
138.14  against a vulnerable adult by a caregiver; 609.23, mistreatment 
138.15  of persons confined; 609.231, mistreatment of residents or 
138.16  patients; 609.2325, criminal abuse of a vulnerable adult; 
138.17  609.2335, financial exploitation of a vulnerable adult; 609.233, 
138.18  criminal neglect of a vulnerable adult; 609.234, failure to 
138.19  report maltreatment of a vulnerable adult; 609.72, subdivision 
138.20  3, disorderly conduct against a vulnerable adult; 609.265, 
138.21  abduction; 609.378, neglect or endangerment of a child; 609.377, 
138.22  malicious punishment of a child; 609.324, subdivision 1a, other 
138.23  prohibited acts, minor engaged in prostitution; 609.33, 
138.24  disorderly house; 609.52, theft; 609.582, burglary in the first, 
138.25  second, third, or fourth degree; 609.631, check forgery, 
138.26  offering a forged check; 609.275, attempt to coerce; an attempt 
138.27  or conspiracy to commit any of these offenses as defined in 
138.28  Minnesota Statutes; or an offense in any other state or country 
138.29  where the elements are substantially similar to any of the 
138.30  offenses listed in this paragraph. 
138.31     (e) Less than seven years have passed since the discharge 
138.32  of the sentence imposed for the offense and the person has 
138.33  received a misdemeanor conviction for one of the following 
138.34  offenses or the person has admitted to committing or a 
138.35  preponderance of the evidence indicates that the person has 
138.36  committed an act that meets the definition of a misdemeanor 
139.1   conviction for one of the following offenses:  sections 609.224, 
139.2   fifth degree assault; 609.2242, domestic assault; 518B.01, 
139.3   violation of an order for protection; 609.3232, violation of an 
139.4   order for protection; 609.746, interference with privacy; 
139.5   609.79, obscene or harassing telephone calls; 609.795, letter, 
139.6   telegram, or package opening, harassment; 617.23, indecent 
139.7   exposure; 609.2672, assault of an unborn child, third degree; 
139.8   617.293, dissemination and display of harmful materials to 
139.9   minors; 609.66, dangerous weapons; 609.665, spring guns; an 
139.10  attempt or conspiracy to commit any of these offenses as defined 
139.11  in Minnesota Statutes; or an offense in any other state or 
139.12  country where the elements are substantially similar to any of 
139.13  the offenses listed in this paragraph. 
139.14     (f) The person has been identified by the county's child 
139.15  protection agency in the county where the provider resides or a 
139.16  county where the provider has resided or by the statewide child 
139.17  protection database as the person allegedly responsible for 
139.18  physical or sexual abuse of a child within the last seven years. 
139.19     (g) The person has been identified by the county's adult 
139.20  protection agency in the county where the provider resides or a 
139.21  county where the provider has resided or by the statewide adult 
139.22  protection database as the person responsible for abuse or 
139.23  neglect of a vulnerable adult within the last seven years. 
139.24     (h) The person has refused to give written consent for 
139.25  disclosure of criminal history records. 
139.26     (i) The person has been denied a family child care license 
139.27  or has received a fine or a sanction as a licensed child care 
139.28  provider that has not been reversed on appeal. 
139.29     (j) The person has a family child care licensing 
139.30  disqualification that has not been set aside. 
139.31     (k) The person has admitted or a county has found that 
139.32  there is a preponderance of evidence that fraudulent information 
139.33  was given to the county for child care assistance application 
139.34  purposes or was used in submitting child care assistance bills 
139.35  for payment. 
139.36     (l) The person has been convicted or there is a 
140.1   preponderance of evidence of the crime of theft by wrongfully 
140.2   obtaining public assistance. 
140.3      (m) The person has a household member age 13 or older who 
140.4   has access to children during the hours that care is provided 
140.5   and who meets one of the conditions listed in paragraphs (b) to 
140.6   (l). 
140.7      (n) The person has a household member ages ten to 12 who 
140.8   has access to children during the hours that care is provided; 
140.9   information or circumstances exist which provide the county with 
140.10  articulable suspicion that further pertinent information may 
140.11  exist showing the household member meets one of the conditions 
140.12  listed in paragraphs (b) to (l); and the household member 
140.13  actually meets one of the conditions listed in paragraphs (b) to 
140.14  (l). 
140.15     Sec. 18.  Minnesota Statutes 2003 Supplement, section 
140.16  119B.13, subdivision 1, is amended to read: 
140.17     Subdivision 1.  [SUBSIDY RESTRICTIONS.] The maximum rate 
140.18  paid for child care assistance under the child care fund may not 
140.19  exceed the 75th percentile rate for like-care arrangements in 
140.20  the county as surveyed by the commissioner.  A rate which 
140.21  includes a provider bonus paid under subdivision 2 or a special 
140.22  needs rate paid under subdivision 3 may be in excess of the 
140.23  maximum rate allowed under this subdivision.  The department 
140.24  shall monitor the effect of this paragraph on provider rates.  
140.25  The county shall pay the provider's full charges for every child 
140.26  in care up to the maximum established.  The commissioner shall 
140.27  determine the maximum rate for each type of care on an hourly, 
140.28  full-day, and weekly basis, including special needs and 
140.29  handicapped care.  Not less than once every two years, the 
140.30  commissioner shall evaluate market practices for payment of 
140.31  absences and shall establish policies for payment of absent days 
140.32  that reflect current market practice. 
140.33     When the provider charge is greater than the maximum 
140.34  provider rate allowed, the parent is responsible for payment of 
140.35  the difference in the rates in addition to any family co-payment 
140.36  fee. 
141.1      Sec. 19.  Minnesota Statutes 2003 Supplement, section 
141.2   119B.13, subdivision 1a, is amended to read: 
141.3      Subd. 1a.  [LEGAL NONLICENSED FAMILY CHILD CARE PROVIDER 
141.4   RATES.] (a) Legal nonlicensed family child care providers 
141.5   receiving reimbursement under this chapter must be paid on an 
141.6   hourly basis for care provided to families receiving assistance. 
141.7      (b) The maximum rate paid to legal nonlicensed family child 
141.8   care providers must be 80 percent of the county maximum hourly 
141.9   rate for licensed family child care providers.  In counties 
141.10  where the maximum hourly rate for licensed family child care 
141.11  providers is higher than the maximum weekly rate for those 
141.12  providers divided by 50, the maximum hourly rate that may be 
141.13  paid to legal nonlicensed family child care providers is the 
141.14  rate equal to the maximum weekly rate for licensed family child 
141.15  care providers divided by 50 and then multiplied by 0.80. 
141.16     (c) A rate which includes a provider bonus paid under 
141.17  subdivision 2 or a special needs rate paid under subdivision 3 
141.18  may be in excess of the maximum rate allowed under this 
141.19  subdivision. 
141.20     (d) Legal nonlicensed family child care providers receiving 
141.21  reimbursement under this chapter may not be paid registration 
141.22  fees for families receiving assistance. 
141.23     Sec. 20.  Minnesota Statutes 2003 Supplement, section 
141.24  119B.189, subdivision 2, is amended to read: 
141.25     Subd. 2.  [INTERIM FINANCING.] "Interim financing" means 
141.26  funding for up to 18 months: 
141.27     (1) for activities that are necessary to receive and 
141.28  maintain state child care licensing; 
141.29     (2) to expand an existing child care program or to improve 
141.30  program quality; and 
141.31     (3) to operate for a period of six consecutive months after 
141.32  a child care facility becomes licensed or satisfies standards of 
141.33  the commissioner of education human services. 
141.34     Sec. 21.  Minnesota Statutes 2003 Supplement, section 
141.35  119B.189, subdivision 4, is amended to read: 
141.36     Subd. 4.  [TRAINING PROGRAM.] "Training program" means 
142.1   child development courses offered by an accredited postsecondary 
142.2   institution or similar training approved by a county board or 
142.3   the commissioner.  A training program must be a course of study 
142.4   that teaches specific skills to meet licensing requirements or 
142.5   requirements of the commissioner of education human services. 
142.6      Sec. 22.  Minnesota Statutes 2003 Supplement, section 
142.7   119B.19, subdivision 1, is amended to read: 
142.8      Subdivision 1.  [DISTRIBUTION OF FUNDS FOR OPERATION OF 
142.9   CHILD CARE RESOURCE AND REFERRAL PROGRAMS.] The commissioner 
142.10  of education human services shall distribute funds to public or 
142.11  private nonprofit organizations for the planning, establishment, 
142.12  expansion, improvement, or operation of child care resource and 
142.13  referral programs under this section.  The commissioner must 
142.14  adopt rules for programs under this section and sections 
142.15  119B.189 and 119B.21.  The commissioner must develop a process 
142.16  to fund organizations to operate child care resource and 
142.17  referral programs that includes application forms, timelines, 
142.18  and standards for renewal. 
142.19     Sec. 23.  Minnesota Statutes 2003 Supplement, section 
142.20  119B.24, is amended to read: 
142.21     119B.24 [DUTIES OF COMMISSIONER.] 
142.22     In addition to the powers and duties already conferred by 
142.23  law, the commissioner of education human services shall: 
142.24     (1) administer the child care fund, including the basic 
142.25  sliding fee program authorized under sections 119B.011 to 
142.26  119B.16; 
142.27     (2) monitor the child care resource and referral programs 
142.28  established under section 119B.19; and 
142.29     (3) encourage child care providers to participate in a 
142.30  nationally recognized accreditation system for early childhood 
142.31  and school-age care programs.  Subject to approval by the 
142.32  commissioner, family child care providers and early childhood 
142.33  and school-age care programs shall be reimbursed for one-half of 
142.34  the direct cost of accreditation fees, upon successful 
142.35  completion of accreditation. 
142.36     Sec. 24.  Minnesota Statutes 2003 Supplement, section 
143.1   119B.25, subdivision 2, is amended to read: 
143.2      Subd. 2.  [GRANTS.] The commissioner shall distribute money 
143.3   provided by this section through a grant to a nonprofit 
143.4   corporation organized to plan, develop, and finance early 
143.5   childhood education and child care sites.  The nonprofit 
143.6   corporation must have demonstrated the ability to analyze 
143.7   financing projects, have knowledge of other sources of public 
143.8   and private financing for child care and early childhood 
143.9   education sites, and have a relationship with the resource and 
143.10  referral programs under section 119B.211.  The board of 
143.11  directors of the nonprofit corporation must include members who 
143.12  are knowledgeable about early childhood education, child care, 
143.13  development and improvement, and financing.  The commissioners 
143.14  of the Departments of Education Human Services and Employment 
143.15  and Economic Development, and the commissioner of the Housing 
143.16  Finance Agency shall advise the board on the loan program.  The 
143.17  grant must be used to make loans to improve child care or early 
143.18  childhood education sites, or loans to plan, design, and 
143.19  construct or expand licensed and legal unlicensed sites to 
143.20  increase the availability of child care or early childhood 
143.21  education.  All loans made by the nonprofit corporation must 
143.22  comply with section 363A.16. 
143.23     Sec. 25.  Minnesota Statutes 2003 Supplement, section 
143.24  256.046, subdivision 1, is amended to read: 
143.25     Subdivision 1.  [HEARING AUTHORITY.] A local agency must 
143.26  initiate an administrative fraud disqualification hearing for 
143.27  individuals, including child care providers caring for children 
143.28  receiving child care assistance, accused of wrongfully obtaining 
143.29  assistance or intentional program violations, in lieu of a 
143.30  criminal action when it has not been pursued, in the aid to 
143.31  families with dependent children program formerly codified in 
143.32  sections 256.72 to 256.87, MFIP, the diversionary work program, 
143.33  child care assistance programs, general assistance, family 
143.34  general assistance program formerly codified in section 256D.05, 
143.35  subdivision 1, clause (15), Minnesota supplemental aid, food 
143.36  stamp programs, general assistance medical care, MinnesotaCare 
144.1   for adults without children, and upon federal approval, all 
144.2   categories of medical assistance and remaining categories of 
144.3   MinnesotaCare except for children through age 18.  The hearing 
144.4   is subject to the requirements of section 256.045 and the 
144.5   requirements in Code of Federal Regulations, title 7, section 
144.6   273.16, for the food stamp program and title 45, section 
144.7   235.112, as of September 30, 1995, for the cash grant, medical 
144.8   care programs, and child care assistance under chapter 119B. 
144.9      Sec. 26.  Minnesota Statutes 2003 Supplement, section 
144.10  256.98, subdivision 8, is amended to read: 
144.11     Subd. 8.  [DISQUALIFICATION FROM PROGRAM.] (a) Any person 
144.12  found to be guilty of wrongfully obtaining assistance by a 
144.13  federal or state court or by an administrative hearing 
144.14  determination, or waiver thereof, through a disqualification 
144.15  consent agreement, or as part of any approved diversion plan 
144.16  under section 401.065, or any court-ordered stay which carries 
144.17  with it any probationary or other conditions, in the Minnesota 
144.18  family investment program, the diversionary work program, the 
144.19  food stamp or food support program, the general assistance 
144.20  program, the group residential housing program, or the Minnesota 
144.21  supplemental aid program shall be disqualified from that 
144.22  program.  In addition, any person disqualified from the 
144.23  Minnesota family investment program shall also be disqualified 
144.24  from the food stamp or food support program.  The needs of that 
144.25  individual shall not be taken into consideration in determining 
144.26  the grant level for that assistance unit:  
144.27     (1) for one year after the first offense; 
144.28     (2) for two years after the second offense; and 
144.29     (3) permanently after the third or subsequent offense.  
144.30     The period of program disqualification shall begin on the 
144.31  date stipulated on the advance notice of disqualification 
144.32  without possibility of postponement for administrative stay or 
144.33  administrative hearing and shall continue through completion 
144.34  unless and until the findings upon which the sanctions were 
144.35  imposed are reversed by a court of competent jurisdiction.  The 
144.36  period for which sanctions are imposed is not subject to 
145.1   review.  The sanctions provided under this subdivision are in 
145.2   addition to, and not in substitution for, any other sanctions 
145.3   that may be provided for by law for the offense involved.  A 
145.4   disqualification established through hearing or waiver shall 
145.5   result in the disqualification period beginning immediately 
145.6   unless the person has become otherwise ineligible for 
145.7   assistance.  If the person is ineligible for assistance, the 
145.8   disqualification period begins when the person again meets the 
145.9   eligibility criteria of the program from which they were 
145.10  disqualified and makes application for that program. 
145.11     (b) A family receiving assistance through child care 
145.12  assistance programs under chapter 119B with a family member who 
145.13  is found to be guilty of wrongfully obtaining child care 
145.14  assistance by a federal court, state court, or an administrative 
145.15  hearing determination or waiver, through a disqualification 
145.16  consent agreement, as part of an approved diversion plan under 
145.17  section 401.065, or a court-ordered stay with probationary or 
145.18  other conditions, is disqualified from child care assistance 
145.19  programs.  The disqualifications must be for periods of three 
145.20  months, six months, and two years for the first, second, and 
145.21  third offenses respectively.  Subsequent violations must result 
145.22  in permanent disqualification.  During the disqualification 
145.23  period, disqualification from any child care program must extend 
145.24  to all child care programs and must be immediately applied. 
145.25     (c) A provider caring for children receiving assistance 
145.26  through child care assistance programs under chapter 119B is 
145.27  disqualified from receiving payment for child care services from 
145.28  the child care assistance program under chapter 119B when the 
145.29  provider is found to have wrongfully obtained child care 
145.30  assistance by a federal court, state court, or an administrative 
145.31  hearing determination or waiver under section 256.046, through a 
145.32  disqualification consent agreement, as part of an approved 
145.33  diversion plan under section 401.065, or a court-ordered stay 
145.34  with probationary or other conditions.  The disqualification 
145.35  must be for a period of one year for the first offense and two 
145.36  years for the second offense.  Any subsequent violation must 
146.1   result in permanent disqualification.  The disqualification 
146.2   period must be imposed immediately after a determination is made 
146.3   under this paragraph.  During the disqualification period, the 
146.4   provider is disqualified from receiving payment from any child 
146.5   care program under chapter 119B.  
146.6      (d) Any person found to be guilty of wrongfully obtaining 
146.7   general assistance medical care, MinnesotaCare for adults 
146.8   without children, and upon federal approval, all categories of 
146.9   medical assistance and remaining categories of MinnesotaCare, 
146.10  except for children through age 18, by a federal or state court 
146.11  or by an administrative hearing determination, or waiver 
146.12  thereof, through a disqualification consent agreement, or as 
146.13  part of any approved diversion plan under section 401.065, or 
146.14  any court-ordered stay which carries with it any probationary or 
146.15  other conditions, is disqualified from that program.  The period 
146.16  of disqualification is one year after the first offense, two 
146.17  years after the second offense, and permanently after the third 
146.18  or subsequent offense.  The period of program disqualification 
146.19  shall begin on the date stipulated on the advance notice of 
146.20  disqualification without possibility of postponement for 
146.21  administrative stay or administrative hearing and shall continue 
146.22  through completion unless and until the findings upon which the 
146.23  sanctions were imposed are reversed by a court of competent 
146.24  jurisdiction.  The period for which sanctions are imposed is not 
146.25  subject to review.  The sanctions provided under this 
146.26  subdivision are in addition to, and not in substitution for, any 
146.27  other sanctions that may be provided for by law for the offense 
146.28  involved. 
146.29     Sec. 27.  Minnesota Statutes 2002, section 256D.051, 
146.30  subdivision 6c, is amended to read: 
146.31     Subd. 6c.  [PROGRAM FUNDING.] (a) Within the limits of 
146.32  available resources, the commissioner shall reimburse the actual 
146.33  costs of county agencies and their employment and training 
146.34  service providers for the provision of food stamp employment and 
146.35  training services, including participant support services, 
146.36  direct program services, and program administrative activities.  
147.1   The cost of services for each county's food stamp employment and 
147.2   training program shall not exceed an average of $400 per 
147.3   participant the annual allocated amount.  No more than 15 
147.4   percent of program funds may be used for administrative 
147.5   activities.  The county agency may expend county funds in excess 
147.6   of the limits of this subdivision without state reimbursement. 
147.7      Program funds shall be allocated based on the county's 
147.8   average number of food stamp cases as compared to the statewide 
147.9   total number of such cases.  The average number of cases shall 
147.10  be based on counts of cases as of March 31, June 30, September 
147.11  30, and December 31 of the previous calendar year.  The 
147.12  commissioner may reallocate unexpended money appropriated under 
147.13  this section to those county agencies that demonstrate a need 
147.14  for additional funds. 
147.15     (b) This subdivision expires effective June 30, 2005. 
147.16     Sec. 28.  Minnesota Statutes 2002, section 256J.01, 
147.17  subdivision 1, is amended to read: 
147.18     Subdivision 1.  [IMPLEMENTATION OF MINNESOTA FAMILY 
147.19  INVESTMENT PROGRAM (MFIP).] Except for section 256J.95, this 
147.20  chapter and chapter 256K may be cited as the Minnesota family 
147.21  investment program (MFIP).  MFIP is the statewide implementation 
147.22  of components of the Minnesota family investment plan (MFIP) 
147.23  authorized and formerly codified in section 256.031 and 
147.24  Minnesota family investment plan-Ramsey County (MFIP-R) formerly 
147.25  codified in section 256.047. 
147.26     Sec. 29.  Minnesota Statutes 2002, section 256J.08, 
147.27  subdivision 73, is amended to read: 
147.28     Subd. 73.  [QUALIFIED NONCITIZEN.] "Qualified noncitizen" 
147.29  means a person: 
147.30     (1) who was lawfully admitted for permanent residence 
147.31  pursuant according to United States Code, title 8; 
147.32     (2) who was admitted to the United States as a refugee 
147.33  pursuant according to United States Code, title 8; section 1157; 
147.34     (3) whose deportation is being withheld pursuant according 
147.35  to United States Code, title 8, section sections 1231(b)(3), 
147.36  1253(h), and 1641(b)(5); 
148.1      (4) who was paroled for a period of at least one year 
148.2   pursuant according to United States Code, title 8, section 
148.3   1182(d)(5); 
148.4      (5) who was granted conditional entry pursuant according to 
148.5   United State Code, title 8, section 1153(a)(7); 
148.6      (6) who is a Cuban or Haitian entrant as defined in section 
148.7   501(e) of the Refugee Education Assistance Act of 1980, United 
148.8   States Code, title 8, section 1641(b)(7); 
148.9      (7) who was granted asylum pursuant according to United 
148.10  States Code, title 8, section 1158; 
148.11     (7) determined to be a battered noncitizen by the United 
148.12  States Attorney General according to the Illegal Immigration 
148.13  Reform and Immigrant Responsibility Act of 1996, Title V of the 
148.14  Omnibus Consolidated Appropriations Bill, Public Law 104-208; 
148.15     (8) who is a child of a noncitizen determined to be a 
148.16  battered noncitizen by the United States Attorney General 
148.17  according to the Illegal Immigration Reform and Responsibility 
148.18  Act of 1996, title V, Public Law 104-200 battered noncitizen 
148.19  according to United States Code, title 8, section 1641(c); or 
148.20     (9) who was admitted as a Cuban or Haitian entrant is a 
148.21  parent or child of a battered noncitizen according to United 
148.22  States Code, title 8, section 1641(c). 
148.23     Sec. 30.  Minnesota Statutes 2002, section 256J.08, 
148.24  subdivision 82a, is amended to read: 
148.25     Subd. 82a.  [SHARED HOUSEHOLD STANDARD.] "Shared household 
148.26  standard" means the basic standard used when the household 
148.27  includes an unrelated member.  The standard also applies to a 
148.28  member disqualified under section 256J.425.  The cash portion of 
148.29  the shared household standard is equal to 90 percent of the cash 
148.30  portion of the transitional standard.  The cash portion of the 
148.31  shared household standard plus the food portion equals the full 
148.32  shared household standard. 
148.33     Sec. 31.  Minnesota Statutes 2003 Supplement, section 
148.34  256J.09, subdivision 3b, is amended to read: 
148.35     Subd. 3b.  [INTERVIEW TO DETERMINE REFERRALS AND SERVICES.] 
148.36  If the applicant is not diverted from applying for MFIP, and if 
149.1   the applicant meets the MFIP eligibility requirements, then a 
149.2   county agency must: 
149.3      (1) identify an applicant who is under the age of 20 
149.4   without a high school diploma or its equivalent and explain to 
149.5   the applicant the assessment procedures and employment plan 
149.6   requirements under section 256J.54; 
149.7      (2) explain to the applicant the eligibility criteria in 
149.8   section 256J.545 for the family violence waiver, and what an 
149.9   applicant should do to develop an employment plan; 
149.10     (3) determine if an applicant qualifies for an exemption 
149.11  under section 256J.56 from employment and training services 
149.12  requirements explain that the activities and hourly requirements 
149.13  of the employment plan may be adjusted to accommodate the 
149.14  personal and family circumstances of applicants who meet the 
149.15  criteria in section 256J.561, subdivision 2, paragraph (d), 
149.16  explain how a person should report to the county agency any 
149.17  status changes, and explain that an applicant who is exempt not 
149.18  required to participate in employment services under section 
149.19  256J.561 may volunteer to participate in employment and training 
149.20  services; 
149.21     (4) for applicants who are not exempt from the requirement 
149.22  to attend orientation, arrange for an orientation under section 
149.23  256J.45 and an assessment under section 256J.521; 
149.24     (5) inform an applicant who is not exempt from the 
149.25  requirement to attend orientation that failure to attend the 
149.26  orientation is considered an occurrence of noncompliance with 
149.27  program requirements and will result in an imposition of a 
149.28  sanction under section 256J.46; and 
149.29     (6) explain how to contact the county agency if an 
149.30  applicant has questions about compliance with program 
149.31  requirements. 
149.32     Sec. 32.  Minnesota Statutes 2003 Supplement, section 
149.33  256J.21, subdivision 2, is amended to read: 
149.34     Subd. 2.  [INCOME EXCLUSIONS.] The following must be 
149.35  excluded in determining a family's available income: 
149.36     (1) payments for basic care, difficulty of care, and 
150.1   clothing allowances received for providing family foster care to 
150.2   children or adults under Minnesota Rules, parts 9545.0010 to 
150.3   9545.0260 and 9555.5050 to 9555.6265, and payments received and 
150.4   used for care and maintenance of a third-party beneficiary who 
150.5   is not a household member; 
150.6      (2) reimbursements for employment training received through 
150.7   the Workforce Investment Act of 1998, United States Code, title 
150.8   20, chapter 73, section 9201; 
150.9      (3) reimbursement for out-of-pocket expenses incurred while 
150.10  performing volunteer services, jury duty, employment, or 
150.11  informal carpooling arrangements directly related to employment; 
150.12     (4) all educational assistance, except the county agency 
150.13  must count graduate student teaching assistantships, 
150.14  fellowships, and other similar paid work as earned income and, 
150.15  after allowing deductions for any unmet and necessary 
150.16  educational expenses, shall count scholarships or grants awarded 
150.17  to graduate students that do not require teaching or research as 
150.18  unearned income; 
150.19     (5) loans, regardless of purpose, from public or private 
150.20  lending institutions, governmental lending institutions, or 
150.21  governmental agencies; 
150.22     (6) loans from private individuals, regardless of purpose, 
150.23  provided an applicant or participant documents that the lender 
150.24  expects repayment; 
150.25     (7)(i) state income tax refunds; and 
150.26     (ii) federal income tax refunds; 
150.27     (8)(i) federal earned income credits; 
150.28     (ii) Minnesota working family credits; 
150.29     (iii) state homeowners and renters credits under chapter 
150.30  290A; and 
150.31     (iv) federal or state tax rebates; 
150.32     (9) funds received for reimbursement, replacement, or 
150.33  rebate of personal or real property when these payments are made 
150.34  by public agencies, awarded by a court, solicited through public 
150.35  appeal, or made as a grant by a federal agency, state or local 
150.36  government, or disaster assistance organizations, subsequent to 
151.1   a presidential declaration of disaster; 
151.2      (10) the portion of an insurance settlement that is used to 
151.3   pay medical, funeral, and burial expenses, or to repair or 
151.4   replace insured property; 
151.5      (11) reimbursements for medical expenses that cannot be 
151.6   paid by medical assistance; 
151.7      (12) payments by a vocational rehabilitation program 
151.8   administered by the state under chapter 268A, except those 
151.9   payments that are for current living expenses; 
151.10     (13) in-kind income, including any payments directly made 
151.11  by a third party to a provider of goods and services; 
151.12     (14) assistance payments to correct underpayments, but only 
151.13  for the month in which the payment is received; 
151.14     (15) payments for short-term emergency needs under section 
151.15  256J.626, subdivision 2; 
151.16     (16) funeral and cemetery payments as provided by section 
151.17  256.935; 
151.18     (17) nonrecurring cash gifts of $30 or less, not exceeding 
151.19  $30 per participant in a calendar month; 
151.20     (18) any form of energy assistance payment made through 
151.21  Public Law 97-35, Low-Income Home Energy Assistance Act of 1981, 
151.22  payments made directly to energy providers by other public and 
151.23  private agencies, and any form of credit or rebate payment 
151.24  issued by energy providers; 
151.25     (19) Supplemental Security Income (SSI), including 
151.26  retroactive SSI payments and other income of an SSI recipient, 
151.27  except as described in section 256J.37, subdivision 3b; 
151.28     (20) Minnesota supplemental aid, including retroactive 
151.29  payments; 
151.30     (21) proceeds from the sale of real or personal property; 
151.31     (22) state adoption assistance payments under section 
151.32  259.67, and up to an equal amount of county adoption assistance 
151.33  payments; 
151.34     (23) state-funded family subsidy program payments made 
151.35  under section 252.32 to help families care for children with 
151.36  mental retardation or related conditions, consumer support grant 
152.1   funds under section 256.476, and resources and services for a 
152.2   disabled household member under one of the home and 
152.3   community-based waiver services programs under chapter 256B; 
152.4      (24) interest payments and dividends from property that is 
152.5   not excluded from and that does not exceed the asset limit; 
152.6      (25) rent rebates; 
152.7      (26) income earned by a minor caregiver, minor child 
152.8   through age 6, or a minor child who is at least a half-time 
152.9   student in an approved elementary or secondary education 
152.10  program; 
152.11     (27) income earned by a caregiver under age 20 who is at 
152.12  least a half-time student in an approved elementary or secondary 
152.13  education program; 
152.14     (28) MFIP child care payments under section 119B.05; 
152.15     (29) all other payments made through MFIP to support a 
152.16  caregiver's pursuit of greater economic stability; 
152.17     (30) income a participant receives related to shared living 
152.18  expenses; 
152.19     (31) reverse mortgages; 
152.20     (32) benefits provided by the Child Nutrition Act of 1966, 
152.21  United States Code, title 42, chapter 13A, sections 1771 to 
152.22  1790; 
152.23     (33) benefits provided by the women, infants, and children 
152.24  (WIC) nutrition program, United States Code, title 42, chapter 
152.25  13A, section 1786; 
152.26     (34) benefits from the National School Lunch Act, United 
152.27  States Code, title 42, chapter 13, sections 1751 to 1769e; 
152.28     (35) relocation assistance for displaced persons under the 
152.29  Uniform Relocation Assistance and Real Property Acquisition 
152.30  Policies Act of 1970, United States Code, title 42, chapter 61, 
152.31  subchapter II, section 4636, or the National Housing Act, United 
152.32  States Code, title 12, chapter 13, sections 1701 to 1750jj; 
152.33     (36) benefits from the Trade Act of 1974, United States 
152.34  Code, title 19, chapter 12, part 2, sections 2271 to 2322; 
152.35     (37) war reparations payments to Japanese Americans and 
152.36  Aleuts under United States Code, title 50, sections 1989 to 
153.1   1989d; 
153.2      (38) payments to veterans or their dependents as a result 
153.3   of legal settlements regarding Agent Orange or other chemical 
153.4   exposure under Public Law 101-239, section 10405, paragraph 
153.5   (a)(2)(E); 
153.6      (39) income that is otherwise specifically excluded from 
153.7   MFIP consideration in federal law, state law, or federal 
153.8   regulation; 
153.9      (40) security and utility deposit refunds; 
153.10     (41) American Indian tribal land settlements excluded under 
153.11  Public Laws 98-123, 98-124, and 99-377 to the Mississippi Band 
153.12  Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 
153.13  reservations and payments to members of the White Earth Band, 
153.14  under United States Code, title 25, chapter 9, section 331, and 
153.15  chapter 16, section 1407; 
153.16     (42) all income of the minor parent's parents and 
153.17  stepparents when determining the grant for the minor parent in 
153.18  households that include a minor parent living with parents or 
153.19  stepparents on MFIP with other children; 
153.20     (43) income of the minor parent's parents and stepparents 
153.21  equal to 200 percent of the federal poverty guideline for a 
153.22  family size not including the minor parent and the minor 
153.23  parent's child in households that include a minor parent living 
153.24  with parents or stepparents not on MFIP when determining the 
153.25  grant for the minor parent.  The remainder of income is deemed 
153.26  as specified in section 256J.37, subdivision 1b; 
153.27     (44) payments made to children eligible for relative 
153.28  custody assistance under section 257.85; 
153.29     (45) vendor payments for goods and services made on behalf 
153.30  of a client unless the client has the option of receiving the 
153.31  payment in cash; and 
153.32     (46) the principal portion of a contract for deed payment. 
153.33     Sec. 33.  Minnesota Statutes 2002, section 256J.21, 
153.34  subdivision 3, is amended to read: 
153.35     Subd. 3.  [INITIAL INCOME TEST.] The county agency shall 
153.36  determine initial eligibility by considering all earned and 
154.1   unearned income that is not excluded under subdivision 2.  To be 
154.2   eligible for MFIP, the assistance unit's countable income minus 
154.3   the disregards in paragraphs (a) and (b) must be below the 
154.4   transitional standard of assistance according to section 256J.24 
154.5   for that size assistance unit. 
154.6      (a) The initial eligibility determination must disregard 
154.7   the following items: 
154.8      (1) the employment disregard is 18 percent of the gross 
154.9   earned income whether or not the member is working full time or 
154.10  part time; 
154.11     (2) dependent care costs must be deducted from gross earned 
154.12  income for the actual amount paid for dependent care up to a 
154.13  maximum of $200 per month for each child less than two years of 
154.14  age, and $175 per month for each child two years of age and 
154.15  older under this chapter and chapter 119B; 
154.16     (3) all payments made according to a court order for 
154.17  spousal support or the support of children not living in the 
154.18  assistance unit's household shall be disregarded from the income 
154.19  of the person with the legal obligation to pay support, provided 
154.20  that, if there has been a change in the financial circumstances 
154.21  of the person with the legal obligation to pay support since the 
154.22  support order was entered, the person with the legal obligation 
154.23  to pay support has petitioned for a modification of the support 
154.24  order; and 
154.25     (4) an allocation for the unmet need of an ineligible 
154.26  spouse or an ineligible child under the age of 21 for whom the 
154.27  caregiver is financially responsible and who lives with the 
154.28  caregiver according to section 256J.36. 
154.29     (b) Notwithstanding paragraph (a), when determining initial 
154.30  eligibility for applicant units when at least one member has 
154.31  received work first or MFIP in this state within four months of 
154.32  the most recent application for MFIP, apply the disregard as 
154.33  defined in section 256J.08, subdivision 24, for all unit members.
154.34     After initial eligibility is established, the assistance 
154.35  payment calculation is based on the monthly income test. 
154.36     Sec. 34.  Minnesota Statutes 2003 Supplement, section 
155.1   256J.24, subdivision 5, is amended to read: 
155.2      Subd. 5.  [MFIP TRANSITIONAL STANDARD.] The MFIP 
155.3   transitional standard is based on the number of persons in the 
155.4   assistance unit eligible for both food and cash assistance 
155.5   unless the restrictions in subdivision 6 on the birth of a child 
155.6   apply.  The following table represents the transitional 
155.7   standards effective October 1, 2002 2003. 
155.8       Number of       Transitional         Cash       Food
155.9    Eligible People     Standard           Portion    Portion
155.10        1                $370   $371:      $250       $120 $121
155.11        2                $658   $661:      $437       $221 $224
155.12        3                $844   $852:      $532       $312 $320
155.13        4                $998 $1,006:      $621       $377 $385
155.14        5              $1,135 $1,146:      $697       $438 $449
155.15        6              $1,296 $1,309:      $773       $523 $536
155.16        7              $1,414 $1,428:      $850       $564 $578
155.17        8              $1,558 $1,572:      $916       $642 $656
155.18        9              $1,700 $1,715:      $980       $720 $735
155.19       10              $1,836 $1,853:    $1,035       $801 $818
155.20  over 10            add $136   $137:       $53        $83  $84
155.21  per additional member.
155.22     The commissioner shall annually publish in the State 
155.23  Register the transitional standard for an assistance unit sizes 
155.24  1 to 10 including a breakdown of the cash and food portions. 
155.25     Sec. 35.  Minnesota Statutes 2003 Supplement, section 
155.26  256J.32, subdivision 2, is amended to read: 
155.27     Subd. 2.  [DOCUMENTATION.] The applicant or participant 
155.28  must document the information required under subdivisions 4 to 6 
155.29  or authorize the county agency to verify the information.  The 
155.30  applicant or participant has the burden of providing documentary 
155.31  evidence to verify eligibility.  The county agency shall assist 
155.32  the applicant or participant in obtaining required documents 
155.33  when the applicant or participant is unable to do so.  The 
155.34  county agency may accept an affidavit a signed personal 
155.35  statement from the applicant or participant only for factors 
155.36  specified under subdivision 8.  
156.1      Sec. 36.  Minnesota Statutes 2003 Supplement, section 
156.2   256J.32, subdivision 8, is amended to read: 
156.3      Subd. 8.  [AFFIDAVIT PERSONAL STATEMENT.] The county agency 
156.4   may accept an affidavit a signed personal statement from the 
156.5   applicant or recipient participant explaining the reasons that 
156.6   the documentation requested in subdivision 2 is unavailable as 
156.7   sufficient documentation at the time of application or, 
156.8   recertification, or change related to eligibility only for the 
156.9   following factors: 
156.10     (1) a claim of family violence if used as a basis to 
156.11  qualify for the family violence waiver; 
156.12     (2) information needed to establish an exception under 
156.13  section 256J.24, subdivision 9; 
156.14     (3) relationship of a minor child to caregivers in the 
156.15  assistance unit; and 
156.16     (4) citizenship status from a noncitizen who reports to be, 
156.17  or is identified as, a victim of severe forms of trafficking in 
156.18  persons, if the noncitizen reports that the noncitizen's 
156.19  immigration documents are being held by an individual or group 
156.20  of individuals against the noncitizen's will.  The noncitizen 
156.21  must follow up with the Office of Refugee Resettlement (ORR) to 
156.22  pursue certification.  If verification that certification is 
156.23  being pursued is not received within 30 days, the MFIP case must 
156.24  be closed and the agency shall pursue overpayments.  The ORR 
156.25  documents certifying the noncitizen's status as a victim of 
156.26  severe forms of trafficking in persons, or the reason for the 
156.27  delay in processing, must be received within 90 days, or the 
156.28  MFIP case must be closed and the agency shall pursue 
156.29  overpayments; and 
156.30     (5) other documentation unavailable for reasons beyond the 
156.31  control of the applicant or participant.  Reasonable attempts 
156.32  must have been made to obtain the documents requested under 
156.33  subdivision 2. 
156.34     Sec. 37.  Minnesota Statutes 2003 Supplement, section 
156.35  256J.37, subdivision 9, is amended to read: 
156.36     Subd. 9.  [UNEARNED INCOME.] (a) The county agency must 
157.1   apply unearned income to the MFIP standard of need.  When 
157.2   determining the amount of unearned income, the county agency 
157.3   must deduct the costs necessary to secure payments of unearned 
157.4   income.  These costs include legal fees, medical fees, and 
157.5   mandatory deductions such as federal and state income taxes. 
157.6      (b) The county agency must convert unearned income received 
157.7   on a periodic basis to monthly amounts by prorating the income 
157.8   over the number of months represented by the frequency of the 
157.9   payments.  The county agency must begin counting the monthly 
157.10  amount in the month the periodic payment is received and budget 
157.11  it according to the assistance unit's budget cycle. 
157.12     Sec. 38.  Minnesota Statutes 2002, section 256J.415, is 
157.13  amended to read: 
157.14     256J.415 [NOTICE OF TIME LIMIT 12 MONTHS PRIOR TO 60-MONTH 
157.15  TIME LIMIT EXPIRING.] 
157.16     (a) The county agency shall mail a notice to each 
157.17  assistance unit when the assistance unit has 12 months of TANF 
157.18  assistance remaining and each month thereafter until the 
157.19  60-month limit has expired.  The notice must be developed by the 
157.20  commissioner of human services and must contain information 
157.21  about the 60-month limit, the number of months the participant 
157.22  has remaining, the hardship extension policy, and any other 
157.23  information that the commissioner deems pertinent to an 
157.24  assistance unit nearing the 60-month limit. 
157.25     (b) For applicants who have less than 12 months remaining 
157.26  in the 60-month time limit because the unit previously received 
157.27  TANF assistance in Minnesota or another state, the county agency 
157.28  shall notify the applicant of the number of months of TANF 
157.29  remaining when the application is approved and begin the process 
157.30  required in paragraph (a). 
157.31     Sec. 39.  Minnesota Statutes 2003 Supplement, section 
157.32  256J.425, subdivision 1, is amended to read: 
157.33     Subdivision 1.  [ELIGIBILITY.] (a) To be eligible for a 
157.34  hardship extension, a participant in an assistance unit subject 
157.35  to the time limit under section 256J.42, subdivision 1, must be 
157.36  in compliance in the participant's 60th counted month.  For 
158.1   purposes of determining eligibility for a hardship extension, a 
158.2   participant is in compliance in any month that the participant 
158.3   has not been sanctioned. 
158.4      (b) If one participant in a two-parent assistance unit is 
158.5   determined to be ineligible for a hardship extension, the county 
158.6   shall give the assistance unit the option of disqualifying the 
158.7   ineligible participant from MFIP.  In that case, the assistance 
158.8   unit shall be treated as a one-parent assistance unit and the 
158.9   assistance unit's MFIP grant shall be calculated using the 
158.10  shared household standard under section 256J.08, subdivision 82a.
158.11     (c) Prior to denying an extension, the county must review 
158.12  the sanction status and determine whether the sanction is 
158.13  appropriate or if good cause exists under section 256J.57.  If 
158.14  the sanction was inappropriately applied or the participant is 
158.15  granted a good cause exception before the end of month 60, the 
158.16  participant shall be considered for an extension. 
158.17     Sec. 40.  Minnesota Statutes 2003 Supplement, section 
158.18  256J.425, subdivision 4, is amended to read: 
158.19     Subd. 4.  [EMPLOYED PARTICIPANTS.] (a) An assistance unit 
158.20  subject to the time limit under section 256J.42, subdivision 1, 
158.21  is eligible to receive assistance under a hardship extension if 
158.22  the participant who reached the time limit belongs to: 
158.23     (1) a one-parent assistance unit in which the participant 
158.24  is participating in work activities for at least 30 hours per 
158.25  week, of which an average of at least 25 hours per week every 
158.26  month are spent participating in employment; 
158.27     (2) a two-parent assistance unit in which the participants 
158.28  are participating in work activities for at least 55 hours per 
158.29  week, of which an average of at least 45 hours per week every 
158.30  month are spent participating in employment; or 
158.31     (3) an assistance unit in which a participant is 
158.32  participating in employment for fewer hours than those specified 
158.33  in clause (1), and the participant submits verification from a 
158.34  qualified professional, in a form acceptable to the 
158.35  commissioner, stating that the number of hours the participant 
158.36  may work is limited due to illness or disability, as long as the 
159.1   participant is participating in employment for at least the 
159.2   number of hours specified by the qualified professional.  The 
159.3   participant must be following the treatment recommendations of 
159.4   the qualified professional providing the verification.  The 
159.5   commissioner shall develop a form to be completed and signed by 
159.6   the qualified professional, documenting the diagnosis and any 
159.7   additional information necessary to document the functional 
159.8   limitations of the participant that limit work hours.  If the 
159.9   participant is part of a two-parent assistance unit, the other 
159.10  parent must be treated as a one-parent assistance unit for 
159.11  purposes of meeting the work requirements under this subdivision.
159.12     (b) For purposes of this section, employment means: 
159.13     (1) unsubsidized employment under section 256J.49, 
159.14  subdivision 13, clause (1); 
159.15     (2) subsidized employment under section 256J.49, 
159.16  subdivision 13, clause (2); 
159.17     (3) on-the-job training under section 256J.49, subdivision 
159.18  13, clause (2); 
159.19     (4) an apprenticeship under section 256J.49, subdivision 
159.20  13, clause (1); 
159.21     (5) supported work under section 256J.49, subdivision 13, 
159.22  clause (2); 
159.23     (6) a combination of clauses (1) to (5); or 
159.24     (7) child care under section 256J.49, subdivision 13, 
159.25  clause (7), if it is in combination with paid employment. 
159.26     (c) If a participant is complying with a child protection 
159.27  plan under chapter 260C, the number of hours required under the 
159.28  child protection plan count toward the number of hours required 
159.29  under this subdivision.  
159.30     (d) The county shall provide the opportunity for subsidized 
159.31  employment to participants needing that type of employment 
159.32  within available appropriations. 
159.33     (e) To be eligible for a hardship extension for employed 
159.34  participants under this subdivision, a participant must be in 
159.35  compliance for at least ten out of the 12 months the participant 
159.36  received MFIP immediately preceding the participant's 61st month 
160.1   on assistance.  If ten or fewer months of eligibility for TANF 
160.2   assistance remain at the time the participant from another state 
160.3   applies for assistance, the participant must be in compliance 
160.4   every month.  
160.5      (f) The employment plan developed under section 256J.521, 
160.6   subdivision 2, for participants under this subdivision must 
160.7   contain at least the minimum number of hours specified in 
160.8   paragraph (a) related to employment and work activities for the 
160.9   purpose of meeting the requirements for an extension under this 
160.10  subdivision.  The job counselor and the participant must sign 
160.11  the employment plan to indicate agreement between the job 
160.12  counselor and the participant on the contents of the plan. 
160.13     (g) Participants who fail to meet the requirements in 
160.14  paragraph (a), without good cause under section 256J.57, shall 
160.15  be sanctioned or permanently disqualified under subdivision 6.  
160.16  Good cause may only be granted for that portion of the month for 
160.17  which the good cause reason applies.  Participants must meet all 
160.18  remaining requirements in the approved employment plan or be 
160.19  subject to sanction or permanent disqualification.  
160.20     (h) If the noncompliance with an employment plan is due to 
160.21  the involuntary loss of employment, the participant is exempt 
160.22  from the hourly employment requirement under this subdivision 
160.23  for one month.  Participants must meet all remaining 
160.24  requirements in the approved employment plan or be subject to 
160.25  sanction or permanent disqualification.  This exemption is 
160.26  available to a each participant two times in a 12-month period. 
160.27     Sec. 41.  Minnesota Statutes 2002, section 256J.425, 
160.28  subdivision 5, is amended to read: 
160.29     Subd. 5.  [ACCRUAL OF CERTAIN EXEMPT MONTHS.] (a) A 
160.30  participant who received TANF assistance that counted towards 
160.31  the federal 60-month time limit while the participant 
160.32  was Participants who meet the criteria in clause (1), (2), or (3)
160.33  and who are not eligible for assistance under a hardship 
160.34  extension under subdivision 2, paragraph (a), clause (3), shall 
160.35  be eligible for a hardship extension for a period of time equal 
160.36  to the number of months that were counted toward the federal 
161.1   60-month time limit while the participant was: 
161.2      (1) a caregiver with a child or an adult in the household 
161.3   who meets the disability or medical criteria for home care 
161.4   services under section 256B.0627, subdivision 1, paragraph (f), 
161.5   or a home and community-based waiver services program under 
161.6   chapter 256B, or meets the criteria for severe emotional 
161.7   disturbance under section 245.4871, subdivision 6, or for 
161.8   serious and persistent mental illness under section 245.462, 
161.9   subdivision 20, paragraph (c), who was subject to the 
161.10  requirements in section 256J.561, subdivision 2; 
161.11     (2) exempt under section 256J.56, paragraph (a), clause 
161.12  (7), from employment and training services requirements and who 
161.13  is no longer eligible for assistance under a hardship extension 
161.14  under subdivision 2, paragraph (a), clause (3), is eligible for 
161.15  assistance under a hardship extension for a period of time equal 
161.16  to the number of months that were counted toward the federal 
161.17  60-month time limit while the participant was exempt under 
161.18  section 256J.56, paragraph (a), clause (7), from the employment 
161.19  and training services requirements.; or 
161.20     (3) exempt under section 256J.56, paragraph (a), clause 
161.21  (3), and demonstrates at the time of the case review required 
161.22  under section 256J.42, subdivision 6, that the participant met 
161.23  the exemption criteria under section 256J.56, paragraph (a), 
161.24  clause (7), during one or more months the participant was exempt 
161.25  under section 256J.56, paragraph (a), clause (3).  Only months 
161.26  during which the participant met the criteria under section 
161.27  256J.56, paragraph (a), clause (7), shall be considered. 
161.28     (b) A participant who received TANF assistance that counted 
161.29  towards the federal 60-month time limit while the participant 
161.30  met the state time limit exemption criteria under section 
161.31  256J.42, subdivision 4 or 5, is eligible for assistance under a 
161.32  hardship extension for a period of time equal to the number of 
161.33  months that were counted toward the federal 60-month time limit 
161.34  while the participant met the state time limit exemption 
161.35  criteria under section 256J.42, subdivision 4 or 5. 
161.36     (c) A participant who received TANF assistance that counted 
162.1   towards the federal 60-month time limit while the participant 
162.2   was exempt under section 256J.56, paragraph (a), clause (3), 
162.3   from employment and training services requirements, who 
162.4   demonstrates at the time of the case review required under 
162.5   section 256J.42, subdivision 6, that the participant met the 
162.6   exemption criteria under section 256J.56, paragraph (a), clause 
162.7   (7), during one or more months the participant was exempt under 
162.8   section 256J.56, paragraph (a), clause (3), before or after July 
162.9   1, 2002, is eligible for assistance under a hardship extension 
162.10  for a period of time equal to the number of months that were 
162.11  counted toward the federal 60-month time limit during the time 
162.12  the participant met the criteria under section 256J.56, 
162.13  paragraph (a), clause (7) After the accrued months have been 
162.14  exhausted, the county agency must determine if the assistance 
162.15  unit is eligible for an extension under another extension 
162.16  category in section 256J.425, subdivision 2, 3, or 4.  
162.17     (d) At the time of the case review, a county agency must 
162.18  explain to the participant the basis for receiving a hardship 
162.19  extension based on the accrual of exempt months.  The 
162.20  participant must provide documentation necessary to enable the 
162.21  county agency to determine whether the participant is eligible 
162.22  to receive a hardship extension based on the accrual of exempt 
162.23  months or authorize a county agency to verify the information. 
162.24     (e) While receiving extended MFIP assistance under this 
162.25  subdivision, a participant is subject to the MFIP policies that 
162.26  apply to participants during the first 60 months of MFIP, unless 
162.27  the participant is a member of a two-parent family in which one 
162.28  parent is extended under subdivision 3 or 4.  For two-parent 
162.29  families in which one parent is extended under subdivision 3 or 
162.30  4, the sanction provisions in subdivision 6, shall apply. 
162.31     Sec. 42.  Minnesota Statutes 2003 Supplement, section 
162.32  256J.425, subdivision 6, is amended to read: 
162.33     Subd. 6.  [SANCTIONS FOR EXTENDED CASES.] (a) If one or 
162.34  both participants in an assistance unit receiving assistance 
162.35  under subdivision 3 or 4 are not in compliance with the 
162.36  employment and training service requirements in sections 
163.1   256J.521 to 256J.57, the sanctions under this subdivision 
163.2   apply.  For a first occurrence of noncompliance, an assistance 
163.3   unit must be sanctioned under section 256J.46, subdivision 1, 
163.4   paragraph (c), clause (1).  For a second or third occurrence of 
163.5   noncompliance, the assistance unit must be sanctioned under 
163.6   section 256J.46, subdivision 1, paragraph (c), clause (2).  For 
163.7   a fourth occurrence of noncompliance, the assistance unit is 
163.8   disqualified from MFIP.  If a participant is determined to be 
163.9   out of compliance, the participant may claim a good cause 
163.10  exception under section 256J.57, however, the participant may 
163.11  not claim an exemption under section 256J.56.  
163.12     (b) If both participants in a two-parent assistance unit 
163.13  are out of compliance at the same time, it is considered one 
163.14  occurrence of noncompliance. 
163.15     (c) When a parent in an extended two-parent assistance unit 
163.16  who has not used 60 months of assistance is out of compliance 
163.17  with the employment and training service requirements in 
163.18  sections 256J.521 to 256J.57, sanctions must be applied as 
163.19  specified in clauses (1) and (2). 
163.20     (1) If the assistance unit is receiving assistance under 
163.21  subdivision 3 or 4, the assistance unit is subject to the 
163.22  sanction policy in this subdivision. 
163.23     (2) If the assistance unit is receiving assistance under 
163.24  subdivision 2, the assistance unit is subject to the sanction 
163.25  policy in section 256J.46. 
163.26     (d) If a two-parent assistance unit is extended under 
163.27  subdivision 3 or 4, and a parent who has not reached the 
163.28  60-month time limit is out of compliance with the employment and 
163.29  training services requirements in sections 256J.521 to 256J.57 
163.30  when the case is extended, the sanction in the 61st month is 
163.31  considered the first sanction for the purposes of applying the 
163.32  sanctions in this subdivision, except that the sanction amount 
163.33  shall be 30 percent. 
163.34     Sec. 43.  Minnesota Statutes 2003 Supplement, section 
163.35  256J.46, subdivision 1, is amended to read: 
163.36     Subdivision 1.  [PARTICIPANTS NOT COMPLYING WITH PROGRAM 
164.1   REQUIREMENTS.] (a) A participant who fails without good cause 
164.2   under section 256J.57 to comply with the requirements of this 
164.3   chapter, and who is not subject to a sanction under subdivision 
164.4   2, shall be subject to a sanction as provided in this 
164.5   subdivision.  Prior to the imposition of a sanction, a county 
164.6   agency shall provide a notice of intent to sanction under 
164.7   section 256J.57, subdivision 2, and, when applicable, a notice 
164.8   of adverse action as provided in section 256J.31. 
164.9      (b) A sanction under this subdivision becomes effective the 
164.10  month following the month in which a required notice is given.  
164.11  A sanction must not be imposed when a participant comes into 
164.12  compliance with the requirements for orientation under section 
164.13  256J.45 prior to the effective date of the sanction.  A sanction 
164.14  must not be imposed when a participant comes into compliance 
164.15  with the requirements for employment and training services under 
164.16  sections 256J.515 to 256J.57 ten days prior to the effective 
164.17  date of the sanction.  For purposes of this subdivision, each 
164.18  month that a participant fails to comply with a requirement of 
164.19  this chapter shall be considered a separate occurrence of 
164.20  noncompliance.  If both participants in a two-parent assistance 
164.21  unit are out of compliance at the same time, it is considered 
164.22  one occurrence of noncompliance.  
164.23     (c) Sanctions for noncompliance shall be imposed as follows:
164.24     (1) For the first occurrence of noncompliance by a 
164.25  participant in an assistance unit, the assistance unit's grant 
164.26  shall be reduced by ten percent of the MFIP standard of need for 
164.27  an assistance unit of the same size with the residual grant paid 
164.28  to the participant.  The reduction in the grant amount must be 
164.29  in effect for a minimum of one month and shall be removed in the 
164.30  month following the month that the participant returns to 
164.31  compliance.  
164.32     (2) For a second, third, fourth, fifth, or sixth occurrence 
164.33  of noncompliance by a participant in an assistance unit, the 
164.34  assistance unit's shelter costs shall be vendor paid up to the 
164.35  amount of the cash portion of the MFIP grant for which the 
164.36  assistance unit is eligible.  At county option, the assistance 
165.1   unit's utilities may also be vendor paid up to the amount of the 
165.2   cash portion of the MFIP grant remaining after vendor payment of 
165.3   the assistance unit's shelter costs.  The residual amount of the 
165.4   grant after vendor payment, if any, must be reduced by an amount 
165.5   equal to 30 percent of the MFIP standard of need for an 
165.6   assistance unit of the same size before the residual grant is 
165.7   paid to the assistance unit.  The reduction in the grant amount 
165.8   must be in effect for a minimum of one month and shall be 
165.9   removed in the month following the month that the participant in 
165.10  a one-parent assistance unit returns to compliance.  In a 
165.11  two-parent assistance unit, the grant reduction must be in 
165.12  effect for a minimum of one month and shall be removed in the 
165.13  month following the month both participants return to 
165.14  compliance.  The vendor payment of shelter costs and, if 
165.15  applicable, utilities shall be removed six months after the 
165.16  month in which the participant or participants return to 
165.17  compliance.  If an assistance unit is sanctioned under this 
165.18  clause, the participant's case file must be reviewed to 
165.19  determine if the employment plan is still appropriate. 
165.20     (d) For a seventh occurrence of noncompliance by a 
165.21  participant in an assistance unit, or when the participants in a 
165.22  two-parent assistance unit have a total of seven occurrences of 
165.23  noncompliance, the county agency shall close the MFIP assistance 
165.24  unit's financial assistance case, both the cash and food 
165.25  portions, and redetermine the family's continued eligibility for 
165.26  food support payments.  The MFIP case must remain closed for a 
165.27  minimum of one full month.  Closure under this paragraph does 
165.28  not make a participant automatically ineligible for food 
165.29  support, if otherwise eligible.  Before the case is closed, the 
165.30  county agency must review the participant's case to determine if 
165.31  the employment plan is still appropriate and attempt to meet 
165.32  with the participant face-to-face.  The participant may bring an 
165.33  advocate to the face-to-face meeting.  If a face-to-face meeting 
165.34  is not conducted, the county agency must send the participant a 
165.35  written notice that includes the information required under 
165.36  clause (1). 
166.1      (1) During the face-to-face meeting, the county agency must:
166.2      (i) determine whether the continued noncompliance can be 
166.3   explained and mitigated by providing a needed preemployment 
166.4   activity, as defined in section 256J.49, subdivision 13, clause 
166.5   (9); 
166.6      (ii) determine whether the participant qualifies for a good 
166.7   cause exception under section 256J.57, or if the sanction is for 
166.8   noncooperation with child support requirements, determine if the 
166.9   participant qualifies for a good cause exemption under section 
166.10  256.741, subdivision 10; 
166.11     (iii) determine whether the participant qualifies for an 
166.12  exemption under section 256J.56 or the work activities in the 
166.13  employment plan are appropriate based on the criteria in section 
166.14  256J.521, subdivision 2 or 3; 
166.15     (iv) determine whether the participant qualifies for the 
166.16  family violence waiver; 
166.17     (v) inform the participant of the participant's sanction 
166.18  status and explain the consequences of continuing noncompliance; 
166.19     (vi) identify other resources that may be available to the 
166.20  participant to meet the needs of the family; and 
166.21     (vii) inform the participant of the right to appeal under 
166.22  section 256J.40. 
166.23     (2) If the lack of an identified activity or service can 
166.24  explain the noncompliance, the county must work with the 
166.25  participant to provide the identified activity. 
166.26     (3) The grant must be restored to the full amount for which 
166.27  the assistance unit is eligible retroactively to the first day 
166.28  of the month in which the participant was found to lack 
166.29  preemployment activities or to qualify for an exemption under 
166.30  section 256J.56, a family violence waiver, or for a good cause 
166.31  exemption under section 256.741, subdivision 10, or 256J.57. 
166.32     (e) For the purpose of applying sanctions under this 
166.33  section, only occurrences of noncompliance that occur after July 
166.34  1, 2003, shall be considered.  If the participant is in 30 
166.35  percent sanction in the month this section takes effect, that 
166.36  month counts as the first occurrence for purposes of applying 
167.1   the sanctions under this section, but the sanction shall remain 
167.2   at 30 percent for that month. 
167.3      (f) An assistance unit whose case is closed under paragraph 
167.4   (d) or (g), may reapply for MFIP and shall be eligible if the 
167.5   participant complies with MFIP program requirements and 
167.6   demonstrates compliance for up to one month.  No assistance 
167.7   shall be paid during this period. 
167.8      (g) An assistance unit whose case has been closed for 
167.9   noncompliance, that reapplies under paragraph (f), is subject to 
167.10  sanction under paragraph (c), clause (2), for a first occurrence 
167.11  of noncompliance.  Any subsequent occurrence of noncompliance 
167.12  shall result in case closure under paragraph (d). 
167.13     Sec. 44.  Minnesota Statutes 2003 Supplement, section 
167.14  256J.49, subdivision 4, is amended to read: 
167.15     Subd. 4.  [EMPLOYMENT AND TRAINING SERVICE PROVIDER.] 
167.16  "Employment and training service provider" means: 
167.17     (1) a public, private, or nonprofit employment and training 
167.18  agency certified by the commissioner of economic security under 
167.19  sections 268.0122, subdivision 3, and 268.871, subdivision 1, or 
167.20  is approved under section 256J.51 and is included in the county 
167.21  service agreement submitted under section 256J.626, subdivision 
167.22  4; 
167.23     (2) a public, private, or nonprofit agency that is not 
167.24  certified by the commissioner under clause (1), but with which a 
167.25  county has contracted to provide employment and training 
167.26  services and which is included in the county's service agreement 
167.27  submitted under section 256J.626, subdivision 4; or 
167.28     (3) (2) a county agency, if the county has opted to provide 
167.29  employment and training services and the county has indicated 
167.30  that fact in the service agreement submitted under section 
167.31  256J.626, subdivision 4. 
167.32     Notwithstanding section 268.871, an employment and training 
167.33  services provider meeting this definition may deliver employment 
167.34  and training services under this chapter. 
167.35     Sec. 45.  Minnesota Statutes 2003 Supplement, section 
167.36  256J.515, is amended to read: 
168.1      256J.515 [OVERVIEW OF EMPLOYMENT AND TRAINING SERVICES.] 
168.2      During the first meeting with participants, job counselors 
168.3   must ensure that an overview of employment and training services 
168.4   is provided that: 
168.5      (1) stresses the necessity and opportunity of immediate 
168.6   employment; 
168.7      (2) outlines the job search resources offered; 
168.8      (3) outlines education or training opportunities available; 
168.9      (4) describes the range of work activities, including 
168.10  activities under section 256J.49, subdivision 13, clause (18), 
168.11  that are allowable under MFIP to meet the individual needs of 
168.12  participants; 
168.13     (5) explains the requirements to comply with an employment 
168.14  plan; 
168.15     (6) explains the consequences for failing to comply; 
168.16     (7) explains the services that are available to support job 
168.17  search and work and education; and 
168.18     (8) provides referral information about shelters and 
168.19  programs for victims of family violence, and the time limit 
168.20  exemption, and waivers of regular employment and training 
168.21  requirements for family violence victims. 
168.22     Failure to attend the overview of employment and training 
168.23  services without good cause results in the imposition of a 
168.24  sanction under section 256J.46. 
168.25     An applicant who requests and qualifies for a family 
168.26  violence waiver is exempt from attending a group overview.  
168.27  Information usually presented in an overview must be covered 
168.28  during the development of an employment plan under section 
168.29  256J.521, subdivision 3. 
168.30     Sec. 46.  Minnesota Statutes 2003 Supplement, section 
168.31  256J.521, subdivision 1, is amended to read: 
168.32     Subdivision 1.  [ASSESSMENTS.] (a) For purposes of MFIP 
168.33  employment services, assessment is a continuing process of 
168.34  gathering information related to employability for the purpose 
168.35  of identifying both participant's strengths and strategies for 
168.36  coping with issues that interfere with employment.  The job 
169.1   counselor must use information from the assessment process to 
169.2   develop and update the employment plan under subdivision 2 or 3, 
169.3   as appropriate, and to determine whether the participant 
169.4   qualifies for a family violence waiver including an employment 
169.5   plan under subdivision 3. 
169.6      (b) The scope of assessment must cover at least the 
169.7   following areas: 
169.8      (1) basic information about the participant's ability to 
169.9   obtain and retain employment, including:  a review of the 
169.10  participant's education level; interests, skills, and abilities; 
169.11  prior employment or work experience; transferable work skills; 
169.12  child care and transportation needs; 
169.13     (2) identification of personal and family circumstances 
169.14  that impact the participant's ability to obtain and retain 
169.15  employment, including:  any special needs of the children, the 
169.16  level of English proficiency, family violence issues, and any 
169.17  involvement with social services or the legal system; 
169.18     (3) the results of a mental and chemical health screening 
169.19  tool designed by the commissioner and results of the brief 
169.20  screening tool for special learning needs.  Screening tools for 
169.21  mental and chemical health and special learning needs must be 
169.22  approved by the commissioner and may only be administered by job 
169.23  counselors or county staff trained in using such screening 
169.24  tools.  The commissioner shall work with county agencies to 
169.25  develop protocols for referrals and follow-up actions after 
169.26  screens are administered to participants, including guidance on 
169.27  how employment plans may be modified based upon outcomes of 
169.28  certain screens.  Participants must be told of the purpose of 
169.29  the screens and how the information will be used to assist the 
169.30  participant in identifying and overcoming barriers to 
169.31  employment.  Screening for mental and chemical health and 
169.32  special learning needs must be completed by participants who are 
169.33  unable to find suitable employment after six weeks of job search 
169.34  under subdivision 2, paragraph (b), and participants who are 
169.35  determined to have barriers to employment under subdivision 2, 
169.36  paragraph (d).  Failure to complete the screens will result in 
170.1   sanction under section 256J.46; and 
170.2      (4) a comprehensive review of participation and progress 
170.3   for participants who have received MFIP assistance and have not 
170.4   worked in unsubsidized employment during the past 12 months.  
170.5   The purpose of the review is to determine the need for 
170.6   additional services and supports, including placement in 
170.7   subsidized employment or unpaid work experience under section 
170.8   256J.49, subdivision 13. 
170.9      (c) Information gathered during a caregiver's participation 
170.10  in the diversionary work program under section 256J.95 must be 
170.11  incorporated into the assessment process. 
170.12     (d) The job counselor may require the participant to 
170.13  complete a professional chemical use assessment to be performed 
170.14  according to the rules adopted under section 254A.03, 
170.15  subdivision 3, including provisions in the administrative rules 
170.16  which recognize the cultural background of the participant, or a 
170.17  professional psychological assessment as a component of the 
170.18  assessment process, when the job counselor has a reasonable 
170.19  belief, based on objective evidence, that a participant's 
170.20  ability to obtain and retain suitable employment is impaired by 
170.21  a medical condition.  The job counselor may assist the 
170.22  participant with arranging services, including child care 
170.23  assistance and transportation, necessary to meet needs 
170.24  identified by the assessment.  Data gathered as part of a 
170.25  professional assessment must be classified and disclosed 
170.26  according to the provisions in section 13.46. 
170.27     Sec. 47.  Minnesota Statutes 2003 Supplement, section 
170.28  256J.521, subdivision 2, is amended to read: 
170.29     Subd. 2.  [EMPLOYMENT PLAN; CONTENTS.] (a) Based on the 
170.30  assessment under subdivision 1, the job counselor and the 
170.31  participant must develop an employment plan that includes 
170.32  participation in activities and hours that meet the requirements 
170.33  of section 256J.55, subdivision 1.  The purpose of the 
170.34  employment plan is to identify for each participant the most 
170.35  direct path to unsubsidized employment and any subsequent steps 
170.36  that support long-term economic stability.  The employment plan 
171.1   should be developed using the highest level of activity 
171.2   appropriate for the participant.  Activities must be chosen from 
171.3   clauses (1) to (6), which are listed in order of preference.  
171.4   Notwithstanding this order of preference for activities, 
171.5   priority must be given for activities related to a family 
171.6   violence waiver when developing the employment plan.  The 
171.7   employment plan must also list the specific steps the 
171.8   participant will take to obtain employment, including steps 
171.9   necessary for the participant to progress from one level of 
171.10  activity to another, and a timetable for completion of each 
171.11  step.  Levels of activity include: 
171.12     (1) unsubsidized employment; 
171.13     (2) job search; 
171.14     (3) subsidized employment or unpaid work experience; 
171.15     (4) unsubsidized employment and job readiness education or 
171.16  job skills training; 
171.17     (5) unsubsidized employment or unpaid work experience and 
171.18  activities related to a family violence waiver or preemployment 
171.19  needs; and 
171.20     (6) activities related to a family violence waiver or 
171.21  preemployment needs. 
171.22     (b) Participants who are determined to possess sufficient 
171.23  skills such that the participant is likely to succeed in 
171.24  obtaining unsubsidized employment must job search at least 30 
171.25  hours per week for up to six weeks and accept any offer of 
171.26  suitable employment.  The remaining hours necessary to meet the 
171.27  requirements of section 256J.55, subdivision 1, may be met 
171.28  through participation in other work activities under section 
171.29  256J.49, subdivision 13.  The participant's employment plan must 
171.30  specify, at a minimum:  (1) whether the job search is supervised 
171.31  or unsupervised; (2) support services that will be provided; and 
171.32  (3) how frequently the participant must report to the job 
171.33  counselor.  Participants who are unable to find suitable 
171.34  employment after six weeks must meet with the job counselor to 
171.35  determine whether other activities in paragraph (a) should be 
171.36  incorporated into the employment plan.  Job search activities 
172.1   which are continued after six weeks must be structured and 
172.2   supervised. 
172.3      (c) Beginning July 1, 2004, activities and hourly 
172.4   requirements in the employment plan may be adjusted as necessary 
172.5   to accommodate the personal and family circumstances of 
172.6   participants identified under section 256J.561, subdivision 2, 
172.7   paragraph (d).  Participants who no longer meet the provisions 
172.8   of section 256J.561, subdivision 2, paragraph (d), must meet 
172.9   with the job counselor within ten days of the determination to 
172.10  revise the employment plan. 
172.11     (d) Participants who are determined to have barriers to 
172.12  obtaining or retaining employment that will not be overcome 
172.13  during six weeks of job search under paragraph (b) must work 
172.14  with the job counselor to develop an employment plan that 
172.15  addresses those barriers by incorporating appropriate activities 
172.16  from paragraph (a), clauses (1) to (6).  The employment plan 
172.17  must include enough hours to meet the participation requirements 
172.18  in section 256J.55, subdivision 1, unless a compelling reason to 
172.19  require fewer hours is noted in the participant's file. 
172.20     (e) The job counselor and the participant must sign the 
172.21  employment plan to indicate agreement on the contents.  Failure 
172.22  to develop or comply with activities in the plan, or voluntarily 
172.23  quitting suitable employment without good cause, will result in 
172.24  the imposition of a sanction under section 256J.46. 
172.25     (f) Employment plans must be reviewed at least every three 
172.26  months to determine whether activities and hourly requirements 
172.27  should be revised. 
172.28     Sec. 48.  Minnesota Statutes 2003 Supplement, section 
172.29  256J.53, subdivision 2, is amended to read: 
172.30     Subd. 2.  [APPROVAL OF POSTSECONDARY EDUCATION OR 
172.31  TRAINING.] (a) In order for a postsecondary education or 
172.32  training program to be an approved activity in an employment 
172.33  plan, the participant must be working in unsubsidized employment 
172.34  at least 20 hours per week. 
172.35     (b) Participants seeking approval of a postsecondary 
172.36  education or training plan must provide documentation that: 
173.1      (1) the employment goal can only be met with the additional 
173.2   education or training; 
173.3      (2) there are suitable employment opportunities that 
173.4   require the specific education or training in the area in which 
173.5   the participant resides or is willing to reside; 
173.6      (3) the education or training will result in significantly 
173.7   higher wages for the participant than the participant could earn 
173.8   without the education or training; 
173.9      (4) the participant can meet the requirements for admission 
173.10  into the program; and 
173.11     (5) there is a reasonable expectation that the participant 
173.12  will complete the training program based on such factors as the 
173.13  participant's MFIP assessment, previous education, training, and 
173.14  work history; current motivation; and changes in previous 
173.15  circumstances. 
173.16     (c) The hourly unsubsidized employment requirement may be 
173.17  reduced does not apply for intensive education or training 
173.18  programs lasting 12 weeks or less when full-time attendance is 
173.19  required. 
173.20     (d) Participants with an approved employment plan in place 
173.21  on July 1, 2003, which includes more than 12 months of 
173.22  postsecondary education or training shall be allowed to complete 
173.23  that plan provided that hourly requirements in section 256J.55, 
173.24  subdivision 1, and conditions specified in paragraph (b), and 
173.25  subdivisions 3 and 5 are met.  A participant whose case is 
173.26  subsequently closed for three months or less for reasons other 
173.27  than noncompliance with program requirements and who return to 
173.28  MFIP shall be allowed to complete that plan provided that hourly 
173.29  requirements in section 256J.55, subdivision 1, and conditions 
173.30  specified in paragraph (b) and subdivisions 3 and 5 are met. 
173.31     Sec. 49.  Minnesota Statutes 2003 Supplement, section 
173.32  256J.56, is amended to read: 
173.33     256J.56 [EMPLOYMENT AND TRAINING SERVICES COMPONENT; 
173.34  EXEMPTIONS.] 
173.35     (a) An MFIP Paragraphs (b) and (c) apply only to an MFIP 
173.36  participant who was exempt from participating in employment 
174.1   services as of June 30, 2004, has not been required to develop 
174.2   an employment plan under section 256J.561, and continues to 
174.3   qualify for an exemption under this section.  All exemptions 
174.4   under this section expire at the time of the participant's 
174.5   recertification.  No new exemptions shall be granted under this 
174.6   section after June 30, 2004. 
174.7      (b) A participant is exempt from the requirements of 
174.8   sections 256J.515 to 256J.57 if the participant belongs 
174.9   continues to belong to any of the following groups: 
174.10     (1) participants who are age 60 or older; 
174.11     (2) participants who are suffering from a permanent or 
174.12  temporary illness, injury, or incapacity which has been 
174.13  certified by a qualified professional when the illness, injury, 
174.14  or incapacity is expected to continue for more than 30 days and 
174.15  prevents the person from obtaining or retaining employment.  
174.16  Persons in this category with a temporary illness, injury, or 
174.17  incapacity must be reevaluated at least quarterly; 
174.18     (3) participants whose presence in the home is required as 
174.19  a caregiver because of the illness, injury, or incapacity of 
174.20  another member in the assistance unit, a relative in the 
174.21  household, or a foster child in the household when the illness 
174.22  or incapacity and the need for a person to provide assistance in 
174.23  the home has been certified by a qualified professional and is 
174.24  expected to continue for more than 30 days; 
174.25     (4) women who are pregnant, if the pregnancy has resulted 
174.26  in an incapacity that prevents the woman from obtaining or 
174.27  retaining employment, and the incapacity has been certified by a 
174.28  qualified professional; 
174.29     (5) caregivers of a child under the age of one year who 
174.30  personally provide full-time care for the child.  This exemption 
174.31  may be used for only 12 months in a lifetime.  In two-parent 
174.32  households, only one parent or other relative may qualify for 
174.33  this exemption; 
174.34     (6) participants experiencing a personal or family crisis 
174.35  that makes them incapable of participating in the program, as 
174.36  determined by the county agency.  If the participant does not 
175.1   agree with the county agency's determination, the participant 
175.2   may seek certification from a qualified professional, as defined 
175.3   in section 256J.08, that the participant is incapable of 
175.4   participating in the program. 
175.5      Persons in this exemption category must be reevaluated 
175.6   every 60 days.  A personal or family crisis related to family 
175.7   violence, as determined by the county or a job counselor with 
175.8   the assistance of a person trained in domestic violence, should 
175.9   not result in an exemption, but should be addressed through the 
175.10  development or revision of an employment plan under section 
175.11  256J.521, subdivision 3; or 
175.12     (7) caregivers with a child or an adult in the household 
175.13  who meets the disability or medical criteria for home care 
175.14  services under section 256B.0627, subdivision 1, paragraph (f), 
175.15  or a home and community-based waiver services program under 
175.16  chapter 256B, or meets the criteria for severe emotional 
175.17  disturbance under section 245.4871, subdivision 6, or for 
175.18  serious and persistent mental illness under section 245.462, 
175.19  subdivision 20, paragraph (c).  Caregivers in this exemption 
175.20  category are presumed to be prevented from obtaining or 
175.21  retaining employment. 
175.22     A caregiver who is exempt under clause (5) must enroll in 
175.23  and attend an early childhood and family education class, a 
175.24  parenting class, or some similar activity, if available, during 
175.25  the period of time the caregiver is exempt under this section.  
175.26  Notwithstanding section 256J.46, failure to attend the required 
175.27  activity shall not result in the imposition of a sanction. 
175.28     (b) (c) The county agency must provide employment and 
175.29  training services to MFIP participants who are exempt under this 
175.30  section, but who volunteer to participate.  Exempt volunteers 
175.31  may request approval for any work activity under section 
175.32  256J.49, subdivision 13.  The hourly participation requirements 
175.33  for nonexempt participants under section 256J.55, subdivision 1, 
175.34  do not apply to exempt participants who volunteer to participate.
175.35     (c) (d) This section expires on June 30, 2004 2005. 
175.36     Sec. 50.  Minnesota Statutes 2003 Supplement, section 
176.1   256J.57, subdivision 1, is amended to read: 
176.2      Subdivision 1.  [GOOD CAUSE FOR FAILURE TO COMPLY.] The 
176.3   county agency shall not impose the sanction under section 
176.4   256J.46 if it determines that the participant has good cause for 
176.5   failing to comply with the requirements of sections 256J.515 to 
176.6   256J.57.  Good cause exists when: 
176.7      (1) appropriate child care is not available; 
176.8      (2) the job does not meet the definition of suitable 
176.9   employment; 
176.10     (3) the participant is ill or injured; 
176.11     (4) a member of the assistance unit, a relative in the 
176.12  household, or a foster child in the household is ill and needs 
176.13  care by the participant that prevents the participant from 
176.14  complying with the employment plan; 
176.15     (5) the parental caregiver participant is unable to secure 
176.16  necessary transportation; 
176.17     (6) the parental caregiver participant is in an emergency 
176.18  situation that prevents compliance with the employment plan; 
176.19     (7) the schedule of compliance with the employment plan 
176.20  conflicts with judicial proceedings; 
176.21     (8) a mandatory MFIP meeting is scheduled during a time 
176.22  that conflicts with a judicial proceeding or a meeting related 
176.23  to a juvenile court matter, or a participant's work schedule; 
176.24     (9) the parental caregiver participant is already 
176.25  participating in acceptable work activities; 
176.26     (10) the employment plan requires an educational program 
176.27  for a caregiver under age 20, but the educational program is not 
176.28  available; 
176.29     (11) activities identified in the employment plan are not 
176.30  available; 
176.31     (12) the parental caregiver participant is willing to 
176.32  accept suitable employment, but suitable employment is not 
176.33  available; or 
176.34     (13) the parental caregiver participant documents other 
176.35  verifiable impediments to compliance with the employment plan 
176.36  beyond the parental caregiver's participant's control. 
177.1      The job counselor shall work with the participant to 
177.2   reschedule mandatory meetings for individuals who fall under 
177.3   clauses (1), (3), (4), (5), (6), (7), and (8). 
177.4      Sec. 51.  Minnesota Statutes 2003 Supplement, section 
177.5   256J.626, subdivision 2, is amended to read: 
177.6      Subd. 2.  [ALLOWABLE EXPENDITURES.] (a) The commissioner 
177.7   must restrict expenditures under the consolidated fund to 
177.8   benefits and services allowed under title IV-A of the federal 
177.9   Social Security Act.  Allowable expenditures under the 
177.10  consolidated fund may include, but are not limited to: 
177.11     (1) short-term, nonrecurring shelter and utility needs that 
177.12  are excluded from the definition of assistance under Code of 
177.13  Federal Regulations, title 45, section 260.31, for families who 
177.14  meet the residency requirement in section 256J.12, subdivisions 
177.15  1 and 1a.  Payments under this subdivision are not considered 
177.16  TANF cash assistance and are not counted towards the 60-month 
177.17  time limit; 
177.18     (2) transportation needed to obtain or retain employment or 
177.19  to participate in other approved work activities; 
177.20     (3) direct and administrative costs of staff to deliver 
177.21  employment services for MFIP or the diversionary work program, 
177.22  to administer financial assistance, and to provide specialized 
177.23  services intended to assist hard-to-employ participants to 
177.24  transition to work; 
177.25     (4) costs of education and training including functional 
177.26  work literacy and English as a second language; 
177.27     (5) cost of work supports including tools, clothing, boots, 
177.28  and other work-related expenses; 
177.29     (6) county administrative expenses as defined in Code of 
177.30  Federal Regulations, title 45, section 260(b); 
177.31     (7) services to parenting and pregnant teens; 
177.32     (8) supported work; 
177.33     (9) wage subsidies; 
177.34     (10) child care needed for MFIP or diversionary work 
177.35  program participants to participate in social services; 
177.36     (11) child care to ensure that families leaving MFIP or 
178.1   diversionary work program will continue to receive child care 
178.2   assistance from the time the family no longer qualifies for 
178.3   transition year child care until an opening occurs under the 
178.4   basic sliding fee child care program; and 
178.5      (12) services to help noncustodial parents who live in 
178.6   Minnesota and have minor children receiving MFIP or DWP 
178.7   assistance, but do not live in the same household as the child, 
178.8   obtain or retain employment. 
178.9      (b) Administrative costs that are not matched with county 
178.10  funds as provided in subdivision 8 may not exceed 7.5 percent of 
178.11  a county's or 15 percent of a tribe's reimbursement allocation 
178.12  under this section.  The commissioner shall define 
178.13  administrative costs for purposes of this subdivision. 
178.14     Sec. 52.  Minnesota Statutes 2003 Supplement, section 
178.15  256J.626, subdivision 6, is amended to read: 
178.16     Subd. 6.  [BASE ALLOCATION TO COUNTIES AND TRIBES.] (a) For 
178.17  purposes of this section, the following terms have the meanings 
178.18  given them: 
178.19     (1) "2002 historic spending base" means the commissioner's 
178.20  determination of the sum of the reimbursement related to fiscal 
178.21  year 2002 of county or tribal agency expenditures for the base 
178.22  programs listed in clause (4), items (i) through (iv), and 
178.23  earnings related to calendar year 2002 in the base program 
178.24  listed in clause (4), item (v), and the amount of spending in 
178.25  fiscal year 2002 in the base program listed in clause (4), item 
178.26  (vi), issued to or on behalf of persons residing in the county 
178.27  or tribal service delivery area. 
178.28     (2) "Initial allocation" means the amount potentially 
178.29  available to each county or tribe based on the formula in 
178.30  paragraphs (b) through (d). 
178.31     (3) "Final allocation" means the amount available to each 
178.32  county or tribe based on the formula in paragraphs (b) through 
178.33  (d), after adjustment by subdivision 7. 
178.34     (4) "Base programs" means the: 
178.35     (i) MFIP employment and training services under Minnesota 
178.36  Statutes 2002, section 256J.62, subdivision 1, in effect June 
179.1   30, 2002; 
179.2      (ii) bilingual employment and training services to refugees 
179.3   under Minnesota Statutes 2002, section 256J.62, subdivision 6, 
179.4   in effect June 30, 2002; 
179.5      (iii) work literacy language programs under Minnesota 
179.6   Statutes 2002, section 256J.62, subdivision 7, in effect June 
179.7   30, 2002; 
179.8      (iv) supported work program authorized in Laws 2001, First 
179.9   Special Session chapter 9, article 17, section 2, in effect June 
179.10  30, 2002; 
179.11     (v) administrative aid program under section 256J.76 in 
179.12  effect December 31, 2002; and 
179.13     (vi) emergency assistance program under Minnesota Statutes 
179.14  2002, section 256J.48, in effect June 30, 2002. 
179.15     (b)(1) Beginning July 1, 2003, the commissioner shall 
179.16  determine the initial allocation of funds available under this 
179.17  section according to clause (2). 
179.18     (2) All of the funds available for the period beginning 
179.19  July 1, 2003, and ending December 31, 2004, shall be allocated 
179.20  to each county or tribe in proportion to the county's or tribe's 
179.21  share of the statewide 2002 historic spending base. 
179.22     (c) For calendar year 2005, the commissioner shall 
179.23  determine the initial allocation of funds to be made available 
179.24  under this section in proportion to the county or tribe's 
179.25  initial allocation for the period of July 1, 2003, to December 
179.26  31, 2004. 
179.27     (d) The formula under this subdivision sunsets December 31, 
179.28  2005. 
179.29     (e) Before November 30, 2003, a county or tribe may ask for 
179.30  a review of the commissioner's determination of the historic 
179.31  base spending when the county or tribe believes the 2002 
179.32  information was inaccurate or incomplete.  By January 1, 2004, 
179.33  the commissioner must adjust that county's or tribe's base when 
179.34  the commissioner has determined that inaccurate or incomplete 
179.35  information was used to develop that base.  The commissioner 
179.36  shall adjust each county's or tribe's initial allocation under 
180.1   paragraph (c) and final allocation under subdivision 7 to 
180.2   reflect the base change With the commencement of a new or 
180.3   expanded tribal TANF program or an agreement under section 
180.4   256.01, subdivision 2, paragraph (g), in which some or all of 
180.5   the responsibilities of particular counties under this section 
180.6   are transferred to a tribe, the commissioner shall: 
180.7      (1) in the case where all responsibilities under this 
180.8   section are transferred to a tribal program, determine the 
180.9   percentage of the county's current caseload that is transferring 
180.10  to a tribal program and adjust the affected county's allocation 
180.11  accordingly; and 
180.12     (2) in the case where a portion of the responsibilities 
180.13  under this section are transferred to a tribal program, the 
180.14  commissioner shall consult with the affected county or counties 
180.15  to determine an appropriate adjustment to the allocation. 
180.16     (f) Effective January 1, 2005, counties and tribes will 
180.17  have their final allocations adjusted based on the performance 
180.18  provisions of subdivision 7. 
180.19     Sec. 53.  Minnesota Statutes 2003 Supplement, section 
180.20  256J.626, subdivision 7, is amended to read: 
180.21     Subd. 7.  [PERFORMANCE BASE FUNDS.] (a) Beginning calendar 
180.22  year 2005, each county and tribe will be allocated 95 percent of 
180.23  their initial calendar year 2005 allocation.  Counties and 
180.24  tribes will be allocated additional funds based on performance 
180.25  as follows: 
180.26     (1) for calendar year 2005, a county or tribe that achieves 
180.27  a 50 30 percent rate or higher on the MFIP participation rate 
180.28  under section 256J.751, subdivision 2, clause (8), as averaged 
180.29  across the four quarterly measurements for the most recent year 
180.30  for which the measurements are available, will receive an 
180.31  additional allocation equal to 2.5 percent of its initial 
180.32  allocation; and 
180.33     (2) for calendar year 2006, a county or tribe that achieves 
180.34  a 40 percent rate or a five percentage point improvement over 
180.35  the previous year's MFIP participation rate under section 
180.36  256J.751, subdivision 2, clause (8), as averaged across the four 
181.1   quarterly measurements for the most recent year for which the 
181.2   measurements are available, will receive an additional 
181.3   allocation equal to 2.5 percent of its initial allocation; and 
181.4      (3) for calendar year 2007, a county or tribe that achieves 
181.5   a 50 percent rate or a five percentage point improvement over 
181.6   the previous year's MFIP participation rate under section 
181.7   256J.751, subdivision 2, clause (8), as averaged across the four 
181.8   quarterly measurements for the most recent year for which the 
181.9   measurements are available, will receive an additional 
181.10  allocation equal to 2.5 percent of its initial allocation; and 
181.11     (4) for calendar year 2008 and yearly thereafter, a county 
181.12  or tribe that achieves a 50 percent MFIP participation rate 
181.13  under section 256J.751, subdivision 2, clause (8), as averaged 
181.14  across the four quarterly measurements for the most recent year 
181.15  for which the measurements are available, will receive an 
181.16  additional allocation equal to 2.5 percent of its initial 
181.17  allocation; and 
181.18     (5) for calendar years 2005 and thereafter, a county or 
181.19  tribe that performs above the top of its range of expected 
181.20  performance on the three-year self-support index under section 
181.21  256J.751, subdivision 2, clause (7), in both measurements in the 
181.22  preceding year will receive an additional allocation equal to 
181.23  five percent of its initial allocation; or 
181.24     (3) (6) for calendar years 2005 and thereafter, a county or 
181.25  tribe that performs within its range of expected performance on 
181.26  the three-year self-support index under section 256J.751, 
181.27  subdivision 2, clause (7), in both measurements in the preceding 
181.28  year, or above the top of its range of expected performance in 
181.29  one measurement and within its expected range of performance in 
181.30  the other measurement, will receive an additional allocation 
181.31  equal to 2.5 percent of its initial allocation. 
181.32     (b) Funds remaining unallocated after the performance-based 
181.33  allocations in paragraph (a) are available to the commissioner 
181.34  for innovation projects under subdivision 5. 
181.35     (c)(1) If available funds are insufficient to meet county 
181.36  and tribal allocations under paragraph (a), the commissioner may 
182.1   make available for allocation funds that are unobligated and 
182.2   available from the innovation projects through the end of the 
182.3   current biennium. 
182.4      (2) If after the application of clause (1) funds remain 
182.5   insufficient to meet county and tribal allocations under 
182.6   paragraph (a), the commissioner must proportionally reduce the 
182.7   allocation of each county and tribe with respect to their 
182.8   maximum allocation available under paragraph (a). 
182.9      Sec. 54.  Minnesota Statutes 2003 Supplement, section 
182.10  256J.751, subdivision 2, is amended to read: 
182.11     Subd. 2.  [QUARTERLY COMPARISON REPORT.] The commissioner 
182.12  shall report quarterly to all counties on each county's 
182.13  performance on the following measures: 
182.14     (1) percent of MFIP caseload working in paid employment; 
182.15     (2) percent of MFIP caseload receiving only the food 
182.16  portion of assistance; 
182.17     (3) number of MFIP cases that have left assistance; 
182.18     (4) federal participation requirements as specified in 
182.19  Title 1 of Public Law 104-193; 
182.20     (5) median placement wage rate; 
182.21     (6) caseload by months of TANF assistance; 
182.22     (7) percent of MFIP and diversionary work program (DWP) 
182.23  cases off cash assistance or working 30 or more hours per week 
182.24  at one-year, two-year, and three-year follow-up points from a 
182.25  baseline quarter.  This measure is called the self-support 
182.26  index.  Twice annually, the commissioner shall report an 
182.27  expected range of performance for each county, county grouping, 
182.28  and tribe on the self-support index.  The expected range shall 
182.29  be derived by a statistical methodology developed by the 
182.30  commissioner in consultation with the counties and tribes.  The 
182.31  statistical methodology shall control differences across 
182.32  counties in economic conditions and demographics of the MFIP and 
182.33  DWP case load; and 
182.34     (8) the MFIP work participation rate, defined as the 
182.35  participation requirements specified in title 1 of Public Law 
182.36  104-193 applied to all MFIP cases except child only cases and 
183.1   cases exempt under section 256J.56. 
183.2      Sec. 55.  Minnesota Statutes 2003 Supplement, section 
183.3   256J.95, subdivision 1, is amended to read: 
183.4      Subdivision 1.  [ESTABLISHING A DIVERSIONARY WORK PROGRAM 
183.5   (DWP).] (a) The Personal Responsibility and Work Opportunity 
183.6   Reconciliation Act of 1996, Public Law 104-193, establishes 
183.7   block grants to states for temporary assistance for needy 
183.8   families (TANF).  TANF provisions allow states to use TANF 
183.9   dollars for nonrecurrent, short-term diversionary benefits.  The 
183.10  diversionary work program established on July 1, 2003, is 
183.11  Minnesota's TANF program to provide short-term diversionary 
183.12  benefits to eligible recipients of the diversionary work program.
183.13     (b) The goal of the diversionary work program is to provide 
183.14  short-term, necessary services and supports to families which 
183.15  will lead to unsubsidized employment, increase economic 
183.16  stability, and reduce the risk of those families needing longer 
183.17  term assistance, under the Minnesota family investment program 
183.18  (MFIP). 
183.19     (c) When a family unit meets the eligibility criteria in 
183.20  this section, the family must receive a diversionary work 
183.21  program grant and is not eligible for MFIP. 
183.22     (d) A family unit is eligible for the diversionary work 
183.23  program for a maximum of four consecutive months only once in a 
183.24  12-month period.  The 12-month period begins at the date of 
183.25  application or the date eligibility is met, whichever is later.  
183.26  During the four-month period four consecutive months, family 
183.27  maintenance needs as defined in subdivision 2, shall be vendor 
183.28  paid, up to the cash portion of the MFIP standard of need for 
183.29  the same size household.  To the extent there is a balance 
183.30  available between the amount paid for family maintenance needs 
183.31  and the cash portion of the transitional standard, a personal 
183.32  needs allowance of up to $70 per DWP recipient in the family 
183.33  unit shall be issued.  The personal needs allowance payment plus 
183.34  the family maintenance needs shall not exceed the cash portion 
183.35  of the MFIP standard of need.  Counties may provide supportive 
183.36  and other allowable services funded by the MFIP consolidated 
184.1   fund under section 256J.626 to eligible participants during the 
184.2   four-month diversionary period. 
184.3      Sec. 56.  Minnesota Statutes 2003 Supplement, section 
184.4   256J.95, subdivision 3, is amended to read: 
184.5      Subd. 3.  [ELIGIBILITY FOR DIVERSIONARY WORK PROGRAM.] (a) 
184.6   Except for the categories of family units listed below, all 
184.7   family units who apply for cash benefits and who meet MFIP 
184.8   eligibility as required in sections 256J.11 to 256J.15 are 
184.9   eligible and must participate in the diversionary work program.  
184.10  Family units that are not eligible for the diversionary work 
184.11  program include: 
184.12     (1) child only cases; 
184.13     (2) a single-parent family unit that includes a child under 
184.14  12 weeks of age.  A parent is eligible for this exception once 
184.15  in a parent's lifetime and is not eligible if the parent has 
184.16  already used the previously allowed child under age one 
184.17  exemption from MFIP employment services; 
184.18     (3) a minor parent without a high school diploma or its 
184.19  equivalent; 
184.20     (4) a caregiver an 18 or 19 years of age year-old caregiver 
184.21  without a high school diploma or its equivalent who chooses to 
184.22  have an employment plan with an education option; 
184.23     (5) a caregiver age 60 or over; 
184.24     (6) family units with a parent caregiver who received DWP 
184.25  benefits within a 12-month period as defined in subdivision 1, 
184.26  paragraph (d) in the 12 months prior to the month the family 
184.27  applied for DWP, except as provided in paragraph (c); and 
184.28     (7) family units with a parent caregiver who received MFIP 
184.29  within the past 12 months prior to the month the family unit 
184.30  applied for DWP; 
184.31     (8) a family unit with a caregiver who received 60 or more 
184.32  months of TANF assistance; and 
184.33     (9) a family unit with a caregiver who is disqualified from 
184.34  DWP or MFIP due to fraud. 
184.35     (b) A two-parent family must participate in DWP unless both 
184.36  parents caregivers meet the criteria for an exception under 
185.1   paragraph (a), clauses (1) through (5), or the family unit 
185.2   includes a parent who meets the criteria in paragraph (a), 
185.3   clause (6) or, (7), (8), or (9). 
185.4      (c) Once DWP eligibility is determined, the four months run 
185.5   consecutively.  If a participant leaves the program for any 
185.6   reason and reapplies during the four-month period, the county 
185.7   must redetermine eligibility for DWP. 
185.8      Sec. 57.  Minnesota Statutes 2003 Supplement, section 
185.9   256J.95, subdivision 11, is amended to read: 
185.10     Subd. 11.  [UNIVERSAL PARTICIPATION REQUIRED.] (a) All DWP 
185.11  caregivers, except caregivers who meet the criteria in paragraph 
185.12  (d), are required to participate in DWP employment services.  
185.13  Except as specified in paragraphs (b) and (c), employment plans 
185.14  under DWP must, at a minimum, meet the requirements in section 
185.15  256J.55, subdivision 1. 
185.16     (b) A caregiver who is a member of a two-parent family that 
185.17  is required to participate in DWP who would otherwise be 
185.18  ineligible for DWP under subdivision 3 may be allowed to develop 
185.19  an employment plan under section 256J.521, subdivision 2, 
185.20  paragraph (c), that may contain alternate activities and reduced 
185.21  hours.  
185.22     (c) A participant who has is a victim of family violence 
185.23  waiver shall be allowed to develop an employment plan under 
185.24  section 256J.521, subdivision 3.  A claim of family violence 
185.25  must be documented by the applicant or participant by providing 
185.26  a sworn statement which is supported by collateral documentation 
185.27  in section 256J.545, paragraph (b). 
185.28     (d) One parent in a two-parent family unit that has a 
185.29  natural born child under 12 weeks of age is not required to have 
185.30  an employment plan until the child reaches 12 weeks of age 
185.31  unless the family unit has already used the exclusion under 
185.32  section 256J.561, subdivision 2, or the previously allowed child 
185.33  under age one exemption under section 256J.56, paragraph (a), 
185.34  clause (5). 
185.35     (e) The provision in paragraph (d) ends the first full 
185.36  month after the child reaches 12 weeks of age.  This provision 
186.1   is allowable only once in a caregiver's lifetime.  In a 
186.2   two-parent household, only one parent shall be allowed to use 
186.3   this category. 
186.4      (f) The participant and job counselor must meet within ten 
186.5   working days after the child reaches 12 weeks of age to revise 
186.6   the participant's employment plan.  The employment plan for a 
186.7   family unit that has a child under 12 weeks of age that has 
186.8   already used the exclusion in section 256J.561 or the previously 
186.9   allowed child under age one exemption under section 256J.56, 
186.10  paragraph (a), clause (5), must be tailored to recognize the 
186.11  caregiving needs of the parent. 
186.12     Sec. 58.  Minnesota Statutes 2003 Supplement, section 
186.13  256J.95, subdivision 12, is amended to read: 
186.14     Subd. 12.  [CONVERSION OR REFERRAL TO MFIP.] (a) If at any 
186.15  time during the DWP application process or during the four-month 
186.16  DWP eligibility period, it is determined that a participant is 
186.17  unlikely to benefit from the diversionary work program, the 
186.18  county shall convert or refer the participant to MFIP as 
186.19  specified in paragraph (d).  Participants who are determined to 
186.20  be unlikely to benefit from the diversionary work program must 
186.21  develop and sign an employment plan.  Participants who meet any 
186.22  one of the criteria in paragraph (b) shall be considered to be 
186.23  unlikely to benefit from DWP, provided the necessary 
186.24  documentation is available to support the determination. 
186.25     (b) A participant who: 
186.26     (1) has been determined by a qualified professional as 
186.27  being unable to obtain or retain employment due to an illness, 
186.28  injury, or incapacity that is expected to last at least 60 days; 
186.29     (2) is required in the home as a caregiver because of the 
186.30  illness, injury, or incapacity, of a family member, or a 
186.31  relative in the household, or a foster child, and the illness, 
186.32  injury, or incapacity and the need for a person to provide 
186.33  assistance in the home has been certified by a qualified 
186.34  professional and is expected to continue more than 60 days; 
186.35     (3) is determined by a qualified professional as being 
186.36  needed in the home to care for a child or adult meeting the 
187.1   special medical criteria in section 256J.425 256J.561, 
187.2   subdivision 2, paragraph (d), clause (3); 
187.3      (4) is pregnant and is determined by a qualified 
187.4   professional as being unable to obtain or retain employment due 
187.5   to the pregnancy; or 
187.6      (5) has applied for SSI or RSDI SSDI. 
187.7      (c) In a two-parent family unit, both parents must be 
187.8   determined to be unlikely to benefit from the diversionary work 
187.9   program before the family unit can be converted or referred to 
187.10  MFIP. 
187.11     (d) A participant who is determined to be unlikely to 
187.12  benefit from the diversionary work program shall be converted to 
187.13  MFIP and, if the determination was made within 30 days of the 
187.14  initial application for benefits, no additional application form 
187.15  is required.  A participant who is determined to be unlikely to 
187.16  benefit from the diversionary work program shall be referred to 
187.17  MFIP and, if the determination is made more than 30 days after 
187.18  the initial application, the participant must submit a program 
187.19  change request form.  The county agency shall process the 
187.20  program change request form by the first of the following month 
187.21  to ensure that no gap in benefits is due to delayed action by 
187.22  the county agency.  In processing the program change request 
187.23  form, the county must follow section 256J.32, subdivision 1, 
187.24  except that the county agency shall not require additional 
187.25  verification of the information in the case file from the DWP 
187.26  application unless the information in the case file is 
187.27  inaccurate, questionable, or no longer current. 
187.28     (e) The county shall not request a combined application 
187.29  form for a participant who has exhausted the four months of the 
187.30  diversionary work program, has continued need for cash and food 
187.31  assistance, and has completed, signed, and submitted a program 
187.32  change request form within 30 days of the fourth month of the 
187.33  diversionary work program.  The county must process the program 
187.34  change request according to section 256J.32, subdivision 1, 
187.35  except that the county agency shall not require additional 
187.36  verification of information in the case file unless the 
188.1   information is inaccurate, questionable, or no longer current.  
188.2   When a participant does not request MFIP within 30 days of the 
188.3   diversionary work program benefits being exhausted, a new 
188.4   combined application form must be completed for any subsequent 
188.5   request for MFIP. 
188.6      Sec. 59.  Minnesota Statutes 2003 Supplement, section 
188.7   256J.95, subdivision 19, is amended to read: 
188.8      Subd. 19.  [RECOVERY OF DWP OVERPAYMENTS AND 
188.9   UNDERPAYMENTS.] When DWP benefits are subject to overpayments 
188.10  and underpayments.  Anytime an overpayment or an ATM error 
188.11  underpayment is determined for DWP, the overpayment correction 
188.12  shall be recouped or calculated using prospective budgeting.  
188.13  Corrections shall be determined based on the policy in section 
188.14  256J.34, subdivision 1, paragraphs (a), (b), and (c), and 
188.15  subdivision 3, paragraph (b), clause (1).  ATM errors must be 
188.16  recovered as specified in section 256J.38, subdivision 5.  DWP 
188.17  overpayments are not subject to cross program recoupment. 
188.18     Sec. 60.  Laws 1997, chapter 245, article 2, section 11, as 
188.19  amended by Laws 2003, First Special Session chapter 14, article 
188.20  10, section 7, is amended to read: 
188.21     Sec. 11.  [FEDERAL FUNDS FOR VISITATION AND ACCESS.] 
188.22     The commissioner of human services may shall apply for and 
188.23  accept on behalf of the state any federal funding received under 
188.24  Public Law Number 104-193 for access and visitation programs, 
188.25  and must administer the funds for the activities allowed under 
188.26  federal law.  The commissioner may distribute the funds on a 
188.27  competitive basis and shall transfer these funds in three equal 
188.28  amounts to the FATHER Project of Goodwill/Easter Seals 
188.29  Minnesota, the Hennepin County African American Men Project, and 
188.30  the Minnesota Fathers & Families Network for use of the 
188.31  activities allowed under federal law.  These programs must 
188.32  monitor, evaluate, and report on the access and visitation 
188.33  programs in accordance with any applicable regulations. 
188.34     Sec. 61.  [TEMPORARY INELIGIBILITY OF MILITARY PERSONNEL.] 
188.35     Counties must reserve a family's position under the child 
188.36  care assistance fund if a family has been receiving child care 
189.1   assistance but is temporarily ineligible for assistance due to 
189.2   increased income from active military service.  Activated 
189.3   military personnel may be temporarily ineligible until 
189.4   deactivated.  A county must reserve a military family's position 
189.5   on the basic sliding fee waiting list under the child care 
189.6   assistance fund if a family is approved to receive child care 
189.7   assistance and reaches the top of the waiting list but is 
189.8   temporarily ineligible for assistance. 
189.9      Sec. 62.  [REPEALER.] 
189.10     (a) Minnesota Statutes 2002, sections 119B.211 and 
189.11  256D.051, subdivision 17, are repealed. 
189.12     (b) Laws 2000, chapter 489, article 1, section 36, is 
189.13  repealed. 
189.14                             ARTICLE 5
189.15                           LONG-TERM CARE 
189.16     Section 1.  Minnesota Statutes 2002, section 198.261, is 
189.17  amended to read: 
189.18     198.261 [CANTEEN AND, COFFEE SHOP, AND WOOD SHOP.] 
189.19     Any profits derived from the operation of canteens and, 
189.20  coffee shops, and wood shops at the Minnesota veterans homes 
189.21  shall be used by the board only for the direct benefit of the 
189.22  residents of the homes. 
189.23     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
189.24  245A.11, subdivision 2a, is amended to read: 
189.25     Subd. 2a.  [ADULT FOSTER CARE LICENSE CAPACITY.] (a) An 
189.26  adult foster care license holder may have a maximum license 
189.27  capacity of five if all persons in care are age 55 or over and 
189.28  do not have a serious and persistent mental illness or a 
189.29  developmental disability.  
189.30     (b) The commissioner may grant variances to paragraph (a) 
189.31  to allow a foster care provider with a licensed capacity of five 
189.32  persons to admit an individual under the age of 55 if the 
189.33  variance complies with section 245A.04, subdivision 9, and 
189.34  approval of the variance is recommended by the county in which 
189.35  the licensed foster care provider is located. 
189.36     (c) The commissioner may grant variances to paragraph (a) 
190.1   to allow the use of a fifth bed for emergency crisis services 
190.2   for a person with serious and persistent mental illness or a 
190.3   developmental disability, regardless of age, if the variance 
190.4   complies with section 245A.04, subdivision 9, and approval of 
190.5   the variance is recommended by the county in which the licensed 
190.6   foster care provider is located. 
190.7      (d) Notwithstanding paragraph (a), the commissioner may 
190.8   issue an adult foster care license with a capacity of five 
190.9   adults when the capacity is recommended by the county licensing 
190.10  agency of the county in which the facility is located and if the 
190.11  recommendation verifies that: 
190.12     (1) the facility meets the physical environment 
190.13  requirements in the adult foster care licensing rule; 
190.14     (2) the five-bed living arrangement is specified for each 
190.15  resident in the resident's: 
190.16     (i) individualized plan of care; 
190.17     (ii) individual service plan under section 256B.092, 
190.18  subdivision 1b, if required; or 
190.19     (iii) individual resident placement agreement under 
190.20  Minnesota Rules, part 9555.5105, subpart 19, if required; 
190.21     (3) the license holder obtains written and signed informed 
190.22  consent from each resident or resident's legal representative 
190.23  documenting the resident's informed choice to living in the home 
190.24  and that the resident's refusal to consent would not have 
190.25  resulted in service termination; and 
190.26     (4) the facility was licensed for adult foster care before 
190.27  March 1, 2003. 
190.28     (e) The commissioner shall not issue a new adult foster 
190.29  care license under paragraph (d) after June 30, 2005.  The 
190.30  commissioner shall allow a facility with an adult foster care 
190.31  license issued under paragraph (d) before June 30, 2005, to 
190.32  continue with a capacity of five or six adults if the license 
190.33  holder continues to comply with the requirements in paragraph 
190.34  (d). 
190.35     Sec. 3.  Minnesota Statutes 2002, section 256B.0625, is 
190.36  amended by adding a subdivision to read: 
191.1      Subd. 2a.  [SKILLED NURSING FACILITY AND HOSPICE SERVICES 
191.2   FOR DUAL ELIGIBLES.] Medical assistance covers skilled nursing 
191.3   facility services for individuals eligible for both medical 
191.4   assistance and Medicare who have waived the Medicare skilled 
191.5   nursing facility room and board benefit and have enrolled in the 
191.6   Medicare hospice program.  Medical assistance covers skilled 
191.7   nursing facility services regardless of whether an individual 
191.8   enrolled in the Medicare hospice program prior to, on, or after 
191.9   the date of the hospitalization that qualified the individual 
191.10  for Medicare skilled nursing facility services. 
191.11     Sec. 4.  Minnesota Statutes 2002, section 256B.0911, 
191.12  subdivision 4a, is amended to read: 
191.13     Subd. 4a.  [PREADMISSION SCREENING ACTIVITIES RELATED TO 
191.14  NURSING FACILITY ADMISSIONS.] (a) All applicants to Medicaid 
191.15  certified nursing facilities, including certified boarding care 
191.16  facilities, must be screened prior to admission regardless of 
191.17  income, assets, or funding sources for nursing facility care, 
191.18  except as described in subdivision 4b.  The purpose of the 
191.19  screening is to determine the need for nursing facility level of 
191.20  care as described in paragraph (d) and to complete activities 
191.21  required under federal law related to mental illness and mental 
191.22  retardation as outlined in paragraph (b). 
191.23     (b) A person who has a diagnosis or possible diagnosis of 
191.24  mental illness, mental retardation, or a related condition must 
191.25  receive a preadmission screening before admission regardless of 
191.26  the exemptions outlined in subdivision 4b, paragraph (b), to 
191.27  identify the need for further evaluation and specialized 
191.28  services, unless the admission prior to screening is authorized 
191.29  by the local mental health authority or the local developmental 
191.30  disabilities case manager, or unless authorized by the county 
191.31  agency according to Public Law 100-508 101-508.  
191.32     The following criteria apply to the preadmission screening: 
191.33     (1) the county must use forms and criteria developed by the 
191.34  commissioner to identify persons who require referral for 
191.35  further evaluation and determination of the need for specialized 
191.36  services; and 
192.1      (2) the evaluation and determination of the need for 
192.2   specialized services must be done by: 
192.3      (i) a qualified independent mental health professional, for 
192.4   persons with a primary or secondary diagnosis of a serious 
192.5   mental illness; or 
192.6      (ii) a qualified mental retardation professional, for 
192.7   persons with a primary or secondary diagnosis of mental 
192.8   retardation or related conditions.  For purposes of this 
192.9   requirement, a qualified mental retardation professional must 
192.10  meet the standards for a qualified mental retardation 
192.11  professional under Code of Federal Regulations, title 42, 
192.12  section 483.430. 
192.13     (c) The local county mental health authority or the state 
192.14  mental retardation authority under Public Law Numbers 100-203 
192.15  and 101-508 may prohibit admission to a nursing facility if the 
192.16  individual does not meet the nursing facility level of care 
192.17  criteria or needs specialized services as defined in Public Law 
192.18  Numbers 100-203 and 101-508.  For purposes of this section, 
192.19  "specialized services" for a person with mental retardation or a 
192.20  related condition means active treatment as that term is defined 
192.21  under Code of Federal Regulations, title 42, section 483.440 
192.22  (a)(1). 
192.23     (d) The determination of the need for nursing facility 
192.24  level of care must be made according to criteria developed by 
192.25  the commissioner.  In assessing a person's needs, consultation 
192.26  team members shall have a physician available for consultation 
192.27  and shall consider the assessment of the individual's attending 
192.28  physician, if any.  The individual's physician must be included 
192.29  if the physician chooses to participate.  Other personnel may be 
192.30  included on the team as deemed appropriate by the county. 
192.31     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
192.32  256B.0915, subdivision 3a, is amended to read: 
192.33     Subd. 3a.  [ELDERLY WAIVER COST LIMITS.] (a) The monthly 
192.34  limit for the cost of waivered services to an individual elderly 
192.35  waiver client shall be the weighted average monthly nursing 
192.36  facility rate of the case mix resident class to which the 
193.1   elderly waiver client would be assigned under Minnesota Rules, 
193.2   parts 9549.0050 to 9549.0059, less the recipient's maintenance 
193.3   needs allowance as described in subdivision 1d, paragraph (a), 
193.4   until the first day of the state fiscal year in which the 
193.5   resident assessment system as described in section 256B.437 for 
193.6   nursing home rate determination is implemented.  Effective on 
193.7   the first day of the state fiscal year in which the resident 
193.8   assessment system as described in section 256B.437 for nursing 
193.9   home rate determination is implemented and the first day of each 
193.10  subsequent state fiscal year, the monthly limit for the cost of 
193.11  waivered services to an individual elderly waiver client shall 
193.12  be the rate of the case mix resident class to which the waiver 
193.13  client would be assigned under Minnesota Rules, parts 9549.0050 
193.14  to 9549.0059, in effect on the last day of the previous state 
193.15  fiscal year, adjusted by the greater of any legislatively 
193.16  adopted home and community-based services cost-of-living 
193.17  percentage rate increase or any legislatively adopted the 
193.18  average statewide percent rate percentage increase for in 
193.19  nursing facilities facility payment rates. 
193.20     (b) If extended medical supplies and equipment or 
193.21  environmental modifications are or will be purchased for an 
193.22  elderly waiver client, the costs may be prorated for up to 12 
193.23  consecutive months beginning with the month of purchase.  If the 
193.24  monthly cost of a recipient's waivered services exceeds the 
193.25  monthly limit established in paragraph (a), the annual cost of 
193.26  all waivered services shall be determined.  In this event, the 
193.27  annual cost of all waivered services shall not exceed 12 times 
193.28  the monthly limit of waivered services as described in paragraph 
193.29  (a).  
193.30     Sec. 6.  Minnesota Statutes 2003 Supplement, section 
193.31  256B.0915, subdivision 3b, is amended to read: 
193.32     Subd. 3b.  [COST LIMITS FOR ELDERLY WAIVER APPLICANTS WHO 
193.33  RESIDE IN A NURSING FACILITY.] (a) For a person who is a nursing 
193.34  facility resident at the time of requesting a determination of 
193.35  eligibility for elderly waivered services, a monthly conversion 
193.36  limit for the cost of elderly waivered services may be 
194.1   requested.  The monthly conversion limit for the cost of elderly 
194.2   waiver services shall be the resident class assigned under 
194.3   Minnesota Rules, parts 9549.0050 to 9549.0059, for that resident 
194.4   in the nursing facility where the resident currently resides 
194.5   until July 1 of the state fiscal year in which the resident 
194.6   assessment system as described in section 256B.437 for nursing 
194.7   home rate determination is implemented.  Effective on July 1 of 
194.8   the state fiscal year in which the resident assessment system as 
194.9   described in section 256B.437 for nursing home rate 
194.10  determination is implemented, the monthly conversion limit for 
194.11  the cost of elderly waiver services shall be the per diem 
194.12  nursing facility rate as determined by the resident assessment 
194.13  system as described in section 256B.437 for that resident in the 
194.14  nursing facility where the resident currently resides multiplied 
194.15  by 365 and divided by 12, less the recipient's maintenance needs 
194.16  allowance as described in subdivision 1d.  The initially 
194.17  approved conversion rate may be adjusted by the greater of any 
194.18  subsequent legislatively adopted home and community-based 
194.19  services cost-of-living percentage rate increase or any 
194.20  subsequent legislatively adopted the average statewide 
194.21  percentage rate increase for in nursing facilities facility 
194.22  payment rates.  The limit under this subdivision only applies to 
194.23  persons discharged from a nursing facility after a minimum 
194.24  30-day stay and found eligible for waivered services on or after 
194.25  July 1, 1997.  
194.26     (b) The following costs must be included in determining the 
194.27  total monthly costs for the waiver client: 
194.28     (1) cost of all waivered services, including extended 
194.29  medical supplies and equipment and environmental modifications; 
194.30  and 
194.31     (2) cost of skilled nursing, home health aide, and personal 
194.32  care services reimbursable by medical assistance.  
194.33     Sec. 7.  Minnesota Statutes 2003 Supplement, section 
194.34  256B.431, subdivision 32, is amended to read: 
194.35     Subd. 32.  [PAYMENT DURING FIRST 90 DAYS.] (a) For rate 
194.36  years beginning on or after July 1, 2001, the total payment rate 
195.1   for a facility reimbursed under this section, section 256B.434, 
195.2   or any other section for the first 90 paid days after admission 
195.3   shall be: 
195.4      (1) for the first 30 paid days, the rate shall be 120 
195.5   percent of the facility's medical assistance rate for each case 
195.6   mix class; 
195.7      (2) for the next 60 paid days after the first 30 paid days, 
195.8   the rate shall be 110 percent of the facility's medical 
195.9   assistance rate for each case mix class; 
195.10     (3) beginning with the 91st paid day after admission, the 
195.11  payment rate shall be the rate otherwise determined under this 
195.12  section, section 256B.434, or any other section; and 
195.13     (4) payments under this paragraph apply to admissions 
195.14  occurring on or after July 1, 2001, and before July 1, 2003, and 
195.15  to resident days occurring before July 30, 2003. 
195.16     (b) For rate years beginning on or after July 1, 2003, the 
195.17  total payment rate for a facility reimbursed under this section, 
195.18  section 256B.434, or any other section shall be: 
195.19     (1) for the first 30 calendar days after admission, the 
195.20  rate shall be 120 percent of the facility's medical assistance 
195.21  rate for each RUG class; 
195.22     (2) beginning with the 31st calendar day after admission, 
195.23  the payment rate shall be the rate otherwise determined under 
195.24  this section, section 256B.434, or any other section; and 
195.25     (3) payments under this paragraph apply to admissions 
195.26  occurring on or after July 1, 2003. 
195.27     (c) Effective January 1, 2004, the enhanced rates under 
195.28  this subdivision shall not be allowed if a resident has resided 
195.29  during the previous 30 calendar days in: 
195.30     (1) the same nursing facility; 
195.31     (2) a nursing facility owned or operated by a related 
195.32  party; or 
195.33     (3) a nursing facility or part of a facility that closed or 
195.34  was in the process of closing. 
195.35     Sec. 8.  Minnesota Statutes 2002, section 256B.431, is 
195.36  amended by adding a subdivision to read: 
196.1      Subd. 40.  [DESIGNATION OF AREAS TO RECEIVE METROPOLITAN 
196.2   RATES.] (a) For rate years beginning on or after July 1, 2004, 
196.3   and subject to paragraph (b), nursing facilities located in 
196.4   areas designated as metropolitan areas by the federal Office of 
196.5   Management and Budget using census bureau data shall be 
196.6   considered metro, in order to: 
196.7      (1) determine rate increases under this section, section 
196.8   256B.434, or any other section; and 
196.9      (2) establish nursing facility reimbursement rates for the 
196.10  new nursing facility reimbursement system developed under Laws 
196.11  2001, First Special Session chapter 9, article 5, section 35, as 
196.12  amended by Laws 2002, chapter 220, article 14, section 19. 
196.13     (b) Paragraph (a) applies only if designation as a metro 
196.14  facility results in a level of reimbursement that is higher than 
196.15  the level the facility would have received without application 
196.16  of that paragraph. 
196.17     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
196.18     Sec. 9.  Minnesota Statutes 2003 Supplement, section 
196.19  256B.69, subdivision 6b, is amended to read: 
196.20     Subd. 6b.  [HOME AND COMMUNITY-BASED WAIVER SERVICES.] (a) 
196.21  For individuals enrolled in the Minnesota senior health options 
196.22  project authorized under subdivision 23, elderly waiver services 
196.23  shall be covered according to the terms and conditions of the 
196.24  federal agreement governing that demonstration project. 
196.25     (b) For individuals under age 65 enrolled in demonstrations 
196.26  authorized under subdivision 23, home and community-based waiver 
196.27  services shall be covered according to the terms and conditions 
196.28  of the federal agreement governing that demonstration project. 
196.29     (c) The commissioner of human services shall issue requests 
196.30  for proposals for collaborative service models between counties 
196.31  and managed care organizations to integrate the home and 
196.32  community-based elderly waiver services and additional nursing 
196.33  home services into the prepaid medical assistance program. 
196.34     (d) Notwithstanding Minnesota Rules, part 9500.1457, 
196.35  subpart 1, item C, elderly waiver services shall be covered 
196.36  statewide no sooner than July 1, 2006, under the prepaid medical 
197.1   assistance program for all individuals who are eligible 
197.2   according to section 256B.0915.  The commissioner may develop a 
197.3   schedule to phase in implementation of these waiver services, 
197.4   including collaborative service models under paragraph (c).  The 
197.5   commissioner shall phase in implementation beginning with those 
197.6   counties participating under section 256B.692, and those 
197.7   counties where a viable collaborative service model has been 
197.8   developed.  In consultation with counties and all managed care 
197.9   organizations that have expressed an interest in participating 
197.10  in collaborative service models, the commissioner shall evaluate 
197.11  the models.  The commissioner shall consider the evaluation in 
197.12  selecting the most appropriate models for statewide 
197.13  implementation. 
197.14                             ARTICLE 6
197.15                            HEALTH CARE
197.16     Section 1.  Minnesota Statutes 2002, section 13.3806, is 
197.17  amended by adding a subdivision to read: 
197.18     Subd. 4a.  [BIRTH DEFECTS INFORMATION SYSTEM.] Information 
197.19  collected for the birth defects information system is governed 
197.20  by section 144.2217. 
197.21     <b>[EFFECTIVE DATE.]</b> This section is effective upon receipt of 
197.22  a federal grant to establish a birth defects information system. 
197.23     Sec. 2.  Minnesota Statutes 2002, section 62A.30, 
197.24  subdivision 2, is amended to read: 
197.25     Subd. 2.  [REQUIRED COVERAGE.] Every policy, plan, 
197.26  certificate, or contract referred to in subdivision 1 issued or 
197.27  renewed after August 1, 1988, that provides coverage to a 
197.28  Minnesota resident must provide coverage for routine screening 
197.29  procedures for cancer, including mammograms, surveillance tests 
197.30  for ovarian cancer for women who are at risk for ovarian cancer 
197.31  as defined in subdivision 3, and pap smears, when ordered or 
197.32  provided by a physician in accordance with the standard practice 
197.33  of medicine. 
197.34     Sec. 3.  Minnesota Statutes 2002, section 62A.30, is 
197.35  amended by adding a subdivision to read: 
197.36     Subd. 3.  [OVARIAN CANCER SURVEILLANCE TESTS.] For purposes 
198.1   of subdivision 2: 
198.2      (a) "At risk for ovarian cancer" means: 
198.3      (1) having a family history: 
198.4      (i) with one or more first or second degree relatives with 
198.5   ovarian cancer; 
198.6      (ii) of clusters of women relatives with breast cancer; or 
198.7      (iii) of nonpolyposis colorectal cancer; or 
198.8      (2) testing positive for BRCA1 or BRCA2 mutations. 
198.9      (b) "Surveillance tests for ovarian cancer" means annual 
198.10  screening using: 
198.11     (1) CA-125 serum tumor marker testing; 
198.12     (2) transvaginal ultrasound; 
198.13     (3) pelvic examination; or 
198.14     (4) other proven ovarian cancer screening tests currently 
198.15  being evaluated by the federal Food and Drug Administration or 
198.16  by the National Cancer Institute. 
198.17     Sec. 4.  Minnesota Statutes 2002, section 62H.01, is 
198.18  amended to read: 
198.19     62H.01 [AUTHORITY TO JOINTLY SELF-INSURE.] 
198.20     Any two or more employers, excluding the state and its 
198.21  political subdivisions as described in section 471.617, 
198.22  subdivision 1, who are authorized to transact business in 
198.23  Minnesota may jointly self-insure employee health, dental, 
198.24  short-term disability benefits, or other benefits permitted 
198.25  under the Employee Retirement Income Security Act of 1974, 
198.26  United States Code, title 29, sections 1001 et seq.  If an 
198.27  employer chooses to jointly self-insure in accordance with this 
198.28  chapter, the employer must participate in the joint plan for at 
198.29  least three consecutive years.  If an employer terminates 
198.30  participation in the joint plan before the conclusion of this 
198.31  three-year period, a financial penalty may be assessed under the 
198.32  joint plan, not to exceed the amount contributed by the employer 
198.33  to the plan's reserves as determined under Minnesota Rules, part 
198.34  2765.1200.  Joint plans must have a minimum of 1,000 covered 
198.35  employees enrollees and meet all conditions and terms of 
198.36  sections 62H.01 to 62H.08.  Joint plans covering employers not 
199.1   resident in Minnesota must meet the requirements of sections 
199.2   62H.01 to 62H.08 as if the portion of the plan covering 
199.3   Minnesota resident employees was treated as a separate plan.  A 
199.4   plan may cover employees resident in other states only if the 
199.5   plan complies with the applicable laws of that state. 
199.6      A multiple employer welfare arrangement as defined in 
199.7   United States Code, title 29, section 1002(40)(a), is subject to 
199.8   this chapter to the extent authorized by the Employee Retirement 
199.9   Income Security Act of 1974, United States Code, title 29, 
199.10  sections 1001 et seq.  The commissioner of commerce may, on 
199.11  behalf of the state, enter into an agreement with the United 
199.12  States Secretary of Labor for delegation to the state of some or 
199.13  all of the secretary's enforcement authority with respect to 
199.14  multiple employer welfare arrangements, as described in United 
199.15  States Code, title 29, section 1136(c). 
199.16     Sec. 5.  Minnesota Statutes 2002, section 62H.02, is 
199.17  amended to read: 
199.18     62H.02 [REQUIRED PROVISIONS.] 
199.19     A joint self-insurance plan must include aggregate excess 
199.20  stop-loss coverage and individual excess stop-loss coverage 
199.21  provided by an insurance company licensed by the state of 
199.22  Minnesota.  Aggregate excess stop-loss coverage must include 
199.23  provisions to cover incurred, unpaid claim liability in the 
199.24  event of plan termination.  In addition, the plan of 
199.25  self-insurance must have participating employers fund an amount 
199.26  at least equal to the point at which the excess or stop-loss 
199.27  insurer has contracted to assume 100 percent of additional 
199.28  liability.  A joint self-insurance plan must submit its proposed 
199.29  excess or stop-loss insurance contract to the commissioner of 
199.30  commerce at least 30 days prior to the proposed plan's effective 
199.31  date and at least 30 days subsequent to any renewal date.  The 
199.32  commissioner shall review the contract to determine if they meet 
199.33  the standards established by sections 62H.01 to 62H.08 and 
199.34  respond within a 30-day period.  Any excess or stop-loss 
199.35  insurance plan must contain a provision that the excess or 
199.36  stop-loss insurer will give the plan and the commissioner of 
200.1   commerce a minimum of 180 days' notice of termination or 
200.2   nonrenewal.  If the plan fails to secure replacement coverage 
200.3   within 60 days after receipt of the notice of cancellation or 
200.4   nonrenewal, the commissioner shall issue an order providing for 
200.5   the orderly termination of the plan.  The commissioner may waive 
200.6   the requirements of this section and of any rule relating to the 
200.7   requirements of this section, if the commissioner determines 
200.8   that a joint self-insurance plan has established alternative 
200.9   arrangements that fully fund the plan's liability or incurred 
200.10  but unpaid claims.  The commissioner may not waive the 
200.11  requirement that a joint self-insurance plan have excess 
200.12  stop-loss coverage. 
200.13     Sec. 6.  Minnesota Statutes 2002, section 62H.04, is 
200.14  amended to read: 
200.15     62H.04 [COMPLIANCE WITH OTHER LAWS.] 
200.16     (a) A joint self-insurance plan is subject to the 
200.17  requirements of chapters 62A, 62E, 62L, and 62Q, and sections 
200.18  72A.17 to 72A.32 unless otherwise specifically exempt.  A joint 
200.19  self-insurance plan must pay assessments made by the Minnesota 
200.20  Comprehensive Health Association, as required under section 
200.21  62E.11. 
200.22     (b) A joint self-insurance plan is exempt from providing 
200.23  the mandated health benefits described in chapters 62A, 62E, 
200.24  62L, and 62Q if it otherwise provides the benefits required 
200.25  under the Employee Retirement Income Security Act of 1974, 
200.26  United States Code, title 29, sections 1001, et seq., for all 
200.27  employers and not just for the employers with 50 or more 
200.28  employees who are covered by that federal law.  
200.29     (c) A joint self-insurance plan is exempt from section 
200.30  62L.03, subdivision 1, if the plan offers an annual open 
200.31  enrollment period of no less than 15 days during which all 
200.32  employers that qualify for membership may enter the plan without 
200.33  preexisting condition limitations or exclusions except those 
200.34  permitted under chapter 62L.  
200.35     (d) A joint self-insurance plan is exempt from sections 
200.36  62A.146, 62A.16, 62A.17, 62A.20, and 62A.21, 62A.65, subdivision 
201.1   5, paragraph (b), and 62E.16 if the joint self-insurance plan 
201.2   complies with the continuation requirements under the Employee 
201.3   Retirement Income Security Act of 1974, United States Code, 
201.4   title 29, sections 1001, et seq., for all employers and not just 
201.5   for the employers with 20 or more employees who are covered by 
201.6   that federal law. 
201.7      (e) A joint self-insurance plan must provide to all 
201.8   employers the maternity coverage required by federal law for 
201.9   employers with 15 or more employees. 
201.10     Sec. 7.  Minnesota Statutes 2002, section 62J.23, 
201.11  subdivision 2, is amended to read: 
201.12     Subd. 2.  [INTERIM RESTRICTIONS.] (a) From July 1, 1992, 
201.13  until rules are adopted by the commissioner under this section, 
201.14  the restrictions in the federal Medicare antikickback statutes 
201.15  in section 1128B(b) of the Social Security Act, United States 
201.16  Code, title 42, section 1320a-7b(b), and rules adopted under the 
201.17  federal statutes, apply to all persons in the state, regardless 
201.18  of whether the person participates in any state health care 
201.19  program.  The commissioner shall approve a transition plan 
201.20  submitted to the commissioner by January 1, 1993, by a person 
201.21  who is in violation of this section that provides a reasonable 
201.22  time for the person to modify prohibited practices or divest 
201.23  financial interests in other persons in order to come into 
201.24  compliance with this section.  Transition plans that identify 
201.25  individuals are private data.  Transition plans that do not 
201.26  identify individuals are nonpublic data. 
201.27     (b) Nothing in paragraph (a) shall be construed to prohibit 
201.28  an individual from receiving a discount or other reduction in 
201.29  price or a limited-time free supply or samples of a prescription 
201.30  drug, medical supply, or medical equipment offered by a 
201.31  pharmaceutical manufacturer, medical supply or device 
201.32  manufacturer, health plan company, or pharmacy benefit manager, 
201.33  so long as: 
201.34     (1) the discount or reduction in price is provided to the 
201.35  individual in connection with the purchase of a prescription 
201.36  drug, medical supply, or medical equipment prescribed for that 
202.1   individual; 
202.2      (2) it otherwise complies with the requirements of state 
202.3   and federal law applicable to enrollees of state and federal 
202.4   public health care programs; 
202.5      (3) the discount or reduction in price does not exceed the 
202.6   amount paid directly by the individual for the prescription 
202.7   drug, medical supply, or medical equipment; and 
202.8      (4) the limited-time free supply or samples are provided by 
202.9   a physician or pharmacist, as provided by the federal 
202.10  Prescription Drug Marketing Act. 
202.11     (c) No benefit, reward, remuneration, or incentive for 
202.12  continued product use may be provided to an individual or an 
202.13  individual's family by a pharmaceutical manufacturer, medical 
202.14  supply or device manufacturer, or pharmacy benefit manager, 
202.15  except that this prohibition does not apply to: 
202.16     (1) activities permitted under paragraph (b); 
202.17     (2) a pharmaceutical manufacturer, medical supply or device 
202.18  manufacturer, health plan company, or pharmacy benefit manager 
202.19  providing to a patient, at a discount or reduced price or free 
202.20  of charge, ancillary products necessary for treatment of the 
202.21  medical condition for which the prescription drug, medical 
202.22  supply, or medical equipment was prescribed or provided; and 
202.23     (3) a pharmaceutical manufacturer, medical supply or device 
202.24  manufacturer, health plan company, or pharmacy benefit manager 
202.25  providing to a patient a trinket or memento of insignificant 
202.26  value. 
202.27     (d) Nothing in this subdivision shall be construed to 
202.28  prohibit a health plan company from offering a tiered formulary 
202.29  with different co-payment or cost-sharing amounts for different 
202.30  drugs. 
202.31     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
202.32     Sec. 8.  [62Q.37] [AUDITS CONDUCTED BY NATIONALLY 
202.33  RECOGNIZED INDEPENDENT ORGANIZATION.] 
202.34     Subdivision 1.  [APPLICABILITY.] This section applies only 
202.35  to (i) a nonprofit health service plan corporation operating 
202.36  under chapter 62C; (ii) a health maintenance organization 
203.1   operating under chapter 62D; (iii) a community integrated 
203.2   service network operating under chapter 62N; and (iv) managed 
203.3   care organizations operating under chapter 256B, 256D, or 256L. 
203.4      Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
203.5   following terms have the meanings given them. 
203.6      (a) "Commissioner" means the commissioner of health for 
203.7   purposes of regulating health maintenance organizations and 
203.8   community integrated service networks, the commissioner of 
203.9   commerce for purposes of regulating nonprofit health service 
203.10  plan corporations, or the commissioner of human services for the 
203.11  purpose of contracting with managed care organizations serving 
203.12  persons enrolled in programs under chapter 256B, 256D, or 256L. 
203.13     (b) "Health plan company" means (i) a nonprofit health 
203.14  service plan corporation operating under chapter 62C; (ii) a 
203.15  health maintenance organization operating under chapter 62D; 
203.16  (iii) a community integrated service network operating under 
203.17  chapter 62N; or (iv) a managed care organization operating under 
203.18  chapter 256B, 256D, or 256L. 
203.19     (c) "Nationally recognized independent organization" means 
203.20  (i) an organization that sets specific national standards 
203.21  governing health care quality assurance processes, utilization 
203.22  review, provider credentialing, marketing, and other topics 
203.23  covered by this chapter and other chapters and audits and 
203.24  provides accreditation to those health plan companies that meet 
203.25  those standards.  The American Accreditation Health Care 
203.26  Commission (URAC), the National Committee for Quality Assurance 
203.27  (NCQA), and the Joint Commission on Accreditation of Healthcare 
203.28  Organizations (JCAHO) are, at a minimum, defined as nationally 
203.29  recognized independent organizations; and (ii) the Centers for 
203.30  Medicare and Medicaid Services for purposes of reviews or audits 
203.31  conducted of health plan companies under Part C of Title XVIII 
203.32  of the Social Security Act or under section 1876 of the Social 
203.33  Security Act. 
203.34     (d) "Performance standard" means those standards relating 
203.35  to quality management and improvement, access and availability 
203.36  of service, utilization review, provider selection, provider 
204.1   credentialing, marketing, member rights and responsibilities, 
204.2   complaints, appeals, grievance systems, enrollee information and 
204.3   materials, enrollment and disenrollment, subcontractual 
204.4   relationships and delegation, confidentiality, continuity and 
204.5   coordination of care, assurance of adequate capacity and 
204.6   services, coverage and authorization of services, practice 
204.7   guidelines, health information systems, and financial solvency. 
204.8      Subd. 3.  [AUDITS.] (a) The commissioner may conduct 
204.9   routine audits and investigations as prescribed under the 
204.10  commissioner's respective state authorizing statutes.  If a 
204.11  nationally recognized independent organization has conducted an 
204.12  audit of the health plan company using audit procedures that are 
204.13  comparable to or more stringent than the commissioner's audit 
204.14  procedures: 
204.15     (1) the commissioner may accept the independent audit and 
204.16  require no further audit if the results of the independent audit 
204.17  show that the performance standard being audited meets or 
204.18  exceeds state standards; 
204.19     (2) the commissioner may accept the independent audit and 
204.20  limit further auditing if the results of the independent audit 
204.21  show that the performance standard being audited partially meets 
204.22  state standards; 
204.23     (3) the health plan company must demonstrate to the 
204.24  commissioner that the nationally recognized independent 
204.25  organization that conducted the audit is qualified and that the 
204.26  results of the audit demonstrate that the particular performance 
204.27  standard partially or fully meets state standards; and 
204.28     (4) if the commissioner has partially or fully accepted an 
204.29  independent audit of the performance standard, the commissioner 
204.30  may use the finding of a deficiency with regard to statutes or 
204.31  rules by an independent audit as the basis for a targeted audit 
204.32  or enforcement action. 
204.33     (b) If a health plan company has formally delegated 
204.34  activities that are required under either state law or contract 
204.35  to another organization that has undergone an audit by a 
204.36  nationally recognized independent organization, that health plan 
205.1   company may use the nationally recognized accrediting body's 
205.2   determination on its own behalf under this section. 
205.3      Subd. 4.  [DISCLOSURE OF NATIONAL STANDARDS AND 
205.4   REPORTS.] The health plan company shall: 
205.5      (1) request that the nationally recognized independent 
205.6   organization provide to the commissioner a copy of the current 
205.7   nationally recognized independent organization's standards upon 
205.8   which the acceptable accreditation status has been granted; and 
205.9      (2) provide the commissioner a copy of the most current 
205.10  final audit report issued by the nationally recognized 
205.11  independent organization. 
205.12     Subd. 5.  [ACCREDITATION NOT REQUIRED.] Nothing in this 
205.13  section requires a health plan company to seek an acceptable 
205.14  accreditation status from a nationally recognized independent 
205.15  organization. 
205.16     Subd. 6.  [CONTINUED AUTHORITY.] Nothing in this section 
205.17  precludes the commissioner from conducting audits and 
205.18  investigations or requesting data as granted under the 
205.19  commissioner's respective state authorizing statutes. 
205.20     Subd. 7.  [HUMAN SERVICES.] The commissioner of human 
205.21  services shall implement this section in a manner that is 
205.22  consistent with applicable federal laws and regulations. 
205.23     Subd. 8.  [CONFIDENTIALITY.] Any documents provided to the 
205.24  commissioner related to the audit report that may be accepted 
205.25  under this section are private data on individuals pursuant to 
205.26  chapter 13 and may only be released as permitted under section 
205.27  60A.03, subdivision 9. 
205.28     Sec. 9.  Minnesota Statutes 2002, section 62T.02, is 
205.29  amended by adding a subdivision to read: 
205.30     Subd. 3.  [SEASONAL EMPLOYEES.] A purchasing alliance may 
205.31  define eligible employees to include seasonal employees.  For 
205.32  purposes of this chapter, "seasonal employee" means an employee 
205.33  who is employed on a full-time basis for at least six months 
205.34  during the calendar year and is unemployed for no longer than 
205.35  four months during the calendar year.  If seasonal employees are 
205.36  included: 
206.1      (1) the alliance must not show bias in the selection of 
206.2   members based on the percentage of seasonal employees employed 
206.3   by an employer member; 
206.4      (2) prior to issuance or renewal, the employer must inform 
206.5   the alliance that it will include seasonal employees; 
206.6      (3) the employer must cover seasonal employees for the 
206.7   entire term of its plan year; and 
206.8      (4) the purchasing alliance may require an employer-member 
206.9   contribution of at least 50 percent of the cost of employee 
206.10  coverage during the months the seasonal employee is unemployed. 
206.11     Sec. 10.  Minnesota Statutes 2003 Supplement, section 
206.12  128C.05, subdivision 1a, is amended to read: 
206.13     Subd. 1a.  [SUPERVISED COMPETITIVE HIGH SCHOOL DIVING.] 
206.14  Notwithstanding Minnesota Rules, part 4717.3750, any pool built 
206.15  before January 1, 1987, that was used for a one-meter board high 
206.16  school diving program during the 2000-2001 school year may be 
206.17  used for supervised competitive one-meter board high school 
206.18  diving unless a pool that meets the requirements of Minnesota 
206.19  Rules, part 4717.3750, is located within the school district.  A 
206.20  school or district using a pool for supervised training practice 
206.21  for competitive high school diving that does not meet the 
206.22  requirements of the rule Minnesota Rules, part 4717.3750, must 
206.23  provide appropriate notice to parents and participants as to the 
206.24  type of variance from Minnesota Rules and risk it may present. 
206.25     Sec. 11.  Minnesota Statutes 2002, section 144.2215, is 
206.26  amended to read: 
206.27     144.2215 [MINNESOTA BIRTH DEFECTS REGISTRY INFORMATION 
206.28  SYSTEM.] 
206.29     Subdivision 1.  [ESTABLISHMENT.] The commissioner of health 
206.30  shall develop a statewide birth defects registry system to 
206.31  provide for the collection, analysis, and dissemination of birth 
206.32  defects information establish and maintain an information system 
206.33  containing data on the cause, treatment, prevention, and cure of 
206.34  major birth defects.  The commissioner shall consult with 
206.35  representatives and experts in epidemiology, medicine, 
206.36  insurance, health maintenance organizations, genetics, 
207.1   consumers, and voluntary organizations in developing the system 
207.2   and may phase in the implementation of the system. 
207.3      Subd. 2.  [DUTIES OF COMMISSIONER.] The commissioner of 
207.4   health shall design a system that allows the commissioner to: 
207.5      (1) monitor incidence trends of birth defects to detect 
207.6   potential public health problems, predict risks, and assist in 
207.7   responding to birth defects clusters; 
207.8      (2) more accurately target intervention, prevention, and 
207.9   services for communities, patients, and their families; 
207.10     (3) inform health professionals and citizens of the 
207.11  prevalence of and risks for birth defects; 
207.12     (4) conduct scientific investigation and surveys of the 
207.13  causes, mortality, methods of treatment, prevention, and cure 
207.14  for birth defects; 
207.15     (5) modify, as necessary, the birth defects information 
207.16  system through demonstration projects; 
207.17     (6) remove identifying information about a child whose 
207.18  parent or legal guardian has chosen not to participate in the 
207.19  system as permitted by section 144.2216, subdivision 4; 
207.20     (7) protect the individually identifiable information as 
207.21  required by section 144.2217; 
207.22     (8) limit the dissemination of identifying information as 
207.23  required by sections 144.2218 and 144.2219; and 
207.24     (9) use the birth defects coding scheme defined by the 
207.25  Centers for Disease Control and Prevention (CDC) of the United 
207.26  States Public Health Service.  
207.27     <b>[EFFECTIVE DATE.]</b> This section is effective upon receipt of 
207.28  a federal grant to establish a birth defects information system. 
207.29     Sec. 12.  [144.2216] [BIRTH DEFECTS RECORDS AND REPORTS 
207.30  REQUIRED.] 
207.31     Subdivision 1.  [HOSPITALS AND SIMILAR INSTITUTIONS.] With 
207.32  the informed consent of a parent or guardian, as provided in 
207.33  subdivision 4, a hospital, medical clinic, medical laboratory, 
207.34  or other institution for the hospitalization, clinical or 
207.35  laboratory diagnosis, or care of human beings shall provide the 
207.36  commissioner of health with access to information on each birth 
208.1   defect case in the manner and at the times that the commissioner 
208.2   designates. 
208.3      Subd. 2.  [OTHER INFORMATION REPOSITORIES.] With the 
208.4   informed consent of a parent or guardian, as provided in 
208.5   subdivision 4, other repositories of information on the 
208.6   diagnosis or care of infants may provide the commissioner with 
208.7   access to information on each case of birth defects in the 
208.8   manner and at the times that the commissioner designates. 
208.9      Subd. 3.  [REPORTING WITHOUT LIABILITY.] Furnishing 
208.10  information in good faith in compliance with this section does 
208.11  not subject the person, hospital, medical clinic, medical 
208.12  laboratory, data repository, or other institution furnishing the 
208.13  information to any action for damages or relief. 
208.14     Subd. 4.  [OPT OUT.] A parent or legal guardian must be 
208.15  informed by the commissioner at the time of the initial data 
208.16  collection that they may request removal at any time of personal 
208.17  identifying information concerning a child from the birth 
208.18  defects information system using a written form prescribed by 
208.19  the commissioner.  The commissioner shall advise parents or 
208.20  legal guardians of infants: 
208.21     (1) that the information on birth defects may be retained 
208.22  by the Department of Health; 
208.23     (2) the benefit of retaining birth defects records; 
208.24     (3) that they may elect to have the birth defects 
208.25  information collected once, within one year of birth, but to 
208.26  require that all personally identifying information be destroyed 
208.27  immediately upon the commissioner receiving the information.  
208.28  If the parents of an infant object in writing to the maintaining 
208.29  of birth defects information, the objection or election shall be 
208.30  recorded on a form that is signed by a parent or legal guardian 
208.31  and submitted to the commissioner of health; and 
208.32     (4) that if the parent or legal guardian chooses to 
208.33  opt-out, the commissioner will not be able to inform the parent 
208.34  or legal guardian of a child of information related to the 
208.35  prevention, treatment, or cause of a particular birth defect. 
208.36     <b>[EFFECTIVE DATE.]</b> This section is effective upon receipt of 
209.1   a federal grant to establish a birth defects information system. 
209.2      Sec. 13.  [144.2217] [CLASSIFICATION OF BIRTH DEFECTS 
209.3   INFORMATION.] 
209.4      Information collected on individuals for the birth defects 
209.5   information system are private data on individuals as defined in 
209.6   section 13.02, subdivision 12, and may only be used for the 
209.7   purposes in sections 144.2215 to 144.2219.  Any disclosure other 
209.8   than one provided for in sections 144.2215 to 144.2219 is a 
209.9   misdemeanor. 
209.10     <b>[EFFECTIVE DATE.]</b> This section is effective upon receipt of 
209.11  a federal grant to establish a birth defects information system. 
209.12     Sec. 14.  [144.2218] [TRANSFERS OF INFORMATION TO OTHER 
209.13  GOVERNMENT AGENCIES.] 
209.14     Information collected by the birth defects information 
209.15  system may be disseminated to a state or local government agency 
209.16  in Minnesota or another state solely for purposes consistent 
209.17  with sections 144.2215 to 144.2219, provided that the state or 
209.18  local government agency agrees to maintain the classification of 
209.19  the information as provided under section 144.2217.  Information 
209.20  collected by other states consistent with sections 144.2215 to 
209.21  144.2219 may be received by the commissioner of health and must 
209.22  be maintained according to section 144.2217. 
209.23     <b>[EFFECTIVE DATE.]</b> This section is effective upon receipt of 
209.24  a federal grant to establish a birth defects information system. 
209.25     Sec. 15.  [144.2219] [TRANSFERS OF INFORMATION TO RESEARCH 
209.26  ENTITIES.] 
209.27     Information from the birth defects information system that 
209.28  does not contain identifying information may be shared with 
209.29  research entities upon request for studies approved by the 
209.30  commissioner and appropriate institutional review boards.  For 
209.31  studies approved by the commissioner that require identifying 
209.32  information about a child or a parent or legal guardian of the 
209.33  child, the commissioner shall contact the parent or legal 
209.34  guardian to obtain informed consent to share identifying 
209.35  information with the research entity.  Notwithstanding section 
209.36  144.335, subdivision 3a, paragraph (d), the parent or legal 
210.1   guardian must provide informed consent before the information 
210.2   may be shared.  The commissioner must collect all reasonable 
210.3   costs of locating and obtaining consent from the research entity.
210.4      <b>[EFFECTIVE DATE.]</b> This section is effective upon receipt of 
210.5   a federal grant to establish a birth defects information system. 
210.6      Sec. 16.  Minnesota Statutes 2002, section 145C.01, 
210.7   subdivision 7, is amended to read: 
210.8      Subd. 7.  [HEALTH CARE FACILITY.] "Health care facility" 
210.9   means a hospital or other entity licensed under sections 144.50 
210.10  to 144.58, a nursing home licensed to serve adults under section 
210.11  144A.02, a home care provider licensed under sections 144A.43 to 
210.12  144A.47, an adult foster care provider licensed under chapter 
210.13  245A and Minnesota Rules, parts 9555.5105 to 9555.6265, or a 
210.14  hospice provider licensed under sections 144A.75 to 144A.755.  
210.15     Sec. 17.  Minnesota Statutes 2003 Supplement, section 
210.16  256.01, subdivision 2, is amended to read: 
210.17     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
210.18  section 241.021, subdivision 2, the commissioner of human 
210.19  services shall carry out the specific duties in paragraphs (a) 
210.20  through (aa): 
210.21     (1) (a) Administer and supervise all forms of public 
210.22  assistance provided for by state law and other welfare 
210.23  activities or services as are vested in the commissioner.  
210.24  Administration and supervision of human services activities or 
210.25  services includes, but is not limited to, assuring timely and 
210.26  accurate distribution of benefits, completeness of service, and 
210.27  quality program management.  In addition to administering and 
210.28  supervising human services activities vested by law in the 
210.29  department, the commissioner shall have the authority to: 
210.30     (a) (1) require county agency participation in training and 
210.31  technical assistance programs to promote compliance with 
210.32  statutes, rules, federal laws, regulations, and policies 
210.33  governing human services; 
210.34     (b) (2) monitor, on an ongoing basis, the performance of 
210.35  county agencies in the operation and administration of human 
210.36  services, enforce compliance with statutes, rules, federal laws, 
211.1   regulations, and policies governing welfare services and promote 
211.2   excellence of administration and program operation; 
211.3      (c) (3) develop a quality control program or other 
211.4   monitoring program to review county performance and accuracy of 
211.5   benefit determinations; 
211.6      (d) (4) require county agencies to make an adjustment to 
211.7   the public assistance benefits issued to any individual 
211.8   consistent with federal law and regulation and state law and 
211.9   rule and to issue or recover benefits as appropriate; 
211.10     (e) (5) delay or deny payment of all or part of the state 
211.11  and federal share of benefits and administrative reimbursement 
211.12  according to the procedures set forth in section 256.017; 
211.13     (f) (6) make contracts with and grants to public and 
211.14  private agencies and organizations, both profit and nonprofit, 
211.15  and individuals, using appropriated funds; and 
211.16     (g) (7) enter into contractual agreements with federally 
211.17  recognized Indian tribes with a reservation in Minnesota to the 
211.18  extent necessary for the tribe to operate a federally approved 
211.19  family assistance program or any other program under the 
211.20  supervision of the commissioner.  The commissioner shall consult 
211.21  with the affected county or counties in the contractual 
211.22  agreement negotiations, if the county or counties wish to be 
211.23  included, in order to avoid the duplication of county and tribal 
211.24  assistance program services.  The commissioner may establish 
211.25  necessary accounts for the purposes of receiving and disbursing 
211.26  funds as necessary for the operation of the programs. 
211.27     (2) (b) Inform county agencies, on a timely basis, of 
211.28  changes in statute, rule, federal law, regulation, and policy 
211.29  necessary to county agency administration of the programs. 
211.30     (3) (c) Administer and supervise all child welfare 
211.31  activities; promote the enforcement of laws protecting 
211.32  handicapped, dependent, neglected and delinquent children, and 
211.33  children born to mothers who were not married to the children's 
211.34  fathers at the times of the conception nor at the births of the 
211.35  children; license and supervise child-caring and child-placing 
211.36  agencies and institutions; supervise the care of children in 
212.1   boarding and foster homes or in private institutions; and 
212.2   generally perform all functions relating to the field of child 
212.3   welfare now vested in the State Board of Control. 
212.4      (4) (d) Administer and supervise all noninstitutional 
212.5   service to handicapped persons, including those who are visually 
212.6   impaired, hearing impaired, or physically impaired or otherwise 
212.7   handicapped.  The commissioner may provide and contract for the 
212.8   care and treatment of qualified indigent children in facilities 
212.9   other than those located and available at state hospitals when 
212.10  it is not feasible to provide the service in state hospitals. 
212.11     (5) (e) Assist and actively cooperate with other 
212.12  departments, agencies and institutions, local, state, and 
212.13  federal, by performing services in conformity with the purposes 
212.14  of Laws 1939, chapter 431. 
212.15     (6) (f) Act as the agent of and cooperate with the federal 
212.16  government in matters of mutual concern relative to and in 
212.17  conformity with the provisions of Laws 1939, chapter 431, 
212.18  including the administration of any federal funds granted to the 
212.19  state to aid in the performance of any functions of the 
212.20  commissioner as specified in Laws 1939, chapter 431, and 
212.21  including the promulgation of rules making uniformly available 
212.22  medical care benefits to all recipients of public assistance, at 
212.23  such times as the federal government increases its participation 
212.24  in assistance expenditures for medical care to recipients of 
212.25  public assistance, the cost thereof to be borne in the same 
212.26  proportion as are grants of aid to said recipients. 
212.27     (7) (g) Establish and maintain any administrative units 
212.28  reasonably necessary for the performance of administrative 
212.29  functions common to all divisions of the department. 
212.30     (8) (h) Act as designated guardian of both the estate and 
212.31  the person of all the wards of the state of Minnesota, whether 
212.32  by operation of law or by an order of court, without any further 
212.33  act or proceeding whatever, except as to persons committed as 
212.34  mentally retarded.  For children under the guardianship of the 
212.35  commissioner whose interests would be best served by adoptive 
212.36  placement, the commissioner may contract with a licensed 
213.1   child-placing agency or a Minnesota tribal social services 
213.2   agency to provide adoption services.  A contract with a licensed 
213.3   child-placing agency must be designed to supplement existing 
213.4   county efforts and may not replace existing county programs, 
213.5   unless the replacement is agreed to by the county board and the 
213.6   appropriate exclusive bargaining representative or the 
213.7   commissioner has evidence that child placements of the county 
213.8   continue to be substantially below that of other counties.  
213.9   Funds encumbered and obligated under an agreement for a specific 
213.10  child shall remain available until the terms of the agreement 
213.11  are fulfilled or the agreement is terminated. 
213.12     (9) (i) Act as coordinating referral and informational 
213.13  center on requests for service for newly arrived immigrants 
213.14  coming to Minnesota. 
213.15     (10) (j) The specific enumeration of powers and duties as 
213.16  hereinabove set forth shall in no way be construed to be a 
213.17  limitation upon the general transfer of powers herein contained. 
213.18     (11) (k) Establish county, regional, or statewide schedules 
213.19  of maximum fees and charges which may be paid by county agencies 
213.20  for medical, dental, surgical, hospital, nursing and nursing 
213.21  home care and medicine and medical supplies under all programs 
213.22  of medical care provided by the state and for congregate living 
213.23  care under the income maintenance programs. 
213.24     (12) (l) Have the authority to conduct and administer 
213.25  experimental projects to test methods and procedures of 
213.26  administering assistance and services to recipients or potential 
213.27  recipients of public welfare.  To carry out such experimental 
213.28  projects, it is further provided that the commissioner of human 
213.29  services is authorized to waive the enforcement of existing 
213.30  specific statutory program requirements, rules, and standards in 
213.31  one or more counties.  The order establishing the waiver shall 
213.32  provide alternative methods and procedures of administration, 
213.33  shall not be in conflict with the basic purposes, coverage, or 
213.34  benefits provided by law, and in no event shall the duration of 
213.35  a project exceed four years.  It is further provided that no 
213.36  order establishing an experimental project as authorized by the 
214.1   provisions of this section shall become effective until the 
214.2   following conditions have been met: 
214.3      (a) (1) the secretary of health and human services of the 
214.4   United States has agreed, for the same project, to waive state 
214.5   plan requirements relative to statewide uniformity.; and 
214.6      (b) (2) a comprehensive plan, including estimated project 
214.7   costs, shall be approved by the Legislative Advisory Commission 
214.8   and filed with the commissioner of administration.  
214.9      (13) (m) According to federal requirements, establish 
214.10  procedures to be followed by local welfare boards in creating 
214.11  citizen advisory committees, including procedures for selection 
214.12  of committee members. 
214.13     (14) (n) Allocate federal fiscal disallowances or sanctions 
214.14  which are based on quality control error rates for the aid to 
214.15  families with dependent children program formerly codified in 
214.16  sections 256.72 to 256.87, medical assistance, or food stamp 
214.17  program in the following manner:  
214.18     (a) (1) one-half of the total amount of the disallowance 
214.19  shall be borne by the county boards responsible for 
214.20  administering the programs.  For the medical assistance and the 
214.21  AFDC program formerly codified in sections 256.72 to 256.87, 
214.22  disallowances shall be shared by each county board in the same 
214.23  proportion as that county's expenditures for the sanctioned 
214.24  program are to the total of all counties' expenditures for the 
214.25  AFDC program formerly codified in sections 256.72 to 256.87, and 
214.26  medical assistance programs.  For the food stamp program, 
214.27  sanctions shall be shared by each county board, with 50 percent 
214.28  of the sanction being distributed to each county in the same 
214.29  proportion as that county's administrative costs for food stamps 
214.30  are to the total of all food stamp administrative costs for all 
214.31  counties, and 50 percent of the sanctions being distributed to 
214.32  each county in the same proportion as that county's value of 
214.33  food stamp benefits issued are to the total of all benefits 
214.34  issued for all counties.  Each county shall pay its share of the 
214.35  disallowance to the state of Minnesota.  When a county fails to 
214.36  pay the amount due hereunder, the commissioner may deduct the 
215.1   amount from reimbursement otherwise due the county, or the 
215.2   attorney general, upon the request of the commissioner, may 
215.3   institute civil action to recover the amount due.; and 
215.4      (b) (2) notwithstanding the provisions of paragraph 
215.5   (a) clause (1), if the disallowance results from knowing 
215.6   noncompliance by one or more counties with a specific program 
215.7   instruction, and that knowing noncompliance is a matter of 
215.8   official county board record, the commissioner may require 
215.9   payment or recover from the county or counties, in the manner 
215.10  prescribed in paragraph (a) clause (1), an amount equal to the 
215.11  portion of the total disallowance which resulted from the 
215.12  noncompliance, and may distribute the balance of the 
215.13  disallowance according to paragraph (a) clause (1).  
215.14     (15) (o) Develop and implement special projects that 
215.15  maximize reimbursements and result in the recovery of money to 
215.16  the state.  For the purpose of recovering state money, the 
215.17  commissioner may enter into contracts with third parties.  Any 
215.18  recoveries that result from projects or contracts entered into 
215.19  under this paragraph shall be deposited in the state treasury 
215.20  and credited to a special account until the balance in the 
215.21  account reaches $1,000,000.  When the balance in the account 
215.22  exceeds $1,000,000, the excess shall be transferred and credited 
215.23  to the general fund.  All money in the account is appropriated 
215.24  to the commissioner for the purposes of this paragraph. 
215.25     (16) (p) Have the authority to make direct payments to 
215.26  facilities providing shelter to women and their children 
215.27  according to section 256D.05, subdivision 3.  Upon the written 
215.28  request of a shelter facility that has been denied payments 
215.29  under section 256D.05, subdivision 3, the commissioner shall 
215.30  review all relevant evidence and make a determination within 30 
215.31  days of the request for review regarding issuance of direct 
215.32  payments to the shelter facility.  Failure to act within 30 days 
215.33  shall be considered a determination not to issue direct payments.
215.34     (17) (q) Have the authority to establish and enforce the 
215.35  following county reporting requirements:  
215.36     (a) (1) the commissioner shall establish fiscal and 
216.1   statistical reporting requirements necessary to account for the 
216.2   expenditure of funds allocated to counties for human services 
216.3   programs.  When establishing financial and statistical reporting 
216.4   requirements, the commissioner shall evaluate all reports, in 
216.5   consultation with the counties, to determine if the reports can 
216.6   be simplified or the number of reports can be reduced.; 
216.7      (b) (2) the county board shall submit monthly or quarterly 
216.8   reports to the department as required by the commissioner.  
216.9   Monthly reports are due no later than 15 working days after the 
216.10  end of the month.  Quarterly reports are due no later than 30 
216.11  calendar days after the end of the quarter, unless the 
216.12  commissioner determines that the deadline must be shortened to 
216.13  20 calendar days to avoid jeopardizing compliance with federal 
216.14  deadlines or risking a loss of federal funding.  Only reports 
216.15  that are complete, legible, and in the required format shall be 
216.16  accepted by the commissioner.; 
216.17     (c) (3) if the required reports are not received by the 
216.18  deadlines established in clause (b) (2), the commissioner may 
216.19  delay payments and withhold funds from the county board until 
216.20  the next reporting period.  When the report is needed to account 
216.21  for the use of federal funds and the late report results in a 
216.22  reduction in federal funding, the commissioner shall withhold 
216.23  from the county boards with late reports an amount equal to the 
216.24  reduction in federal funding until full federal funding is 
216.25  received.; 
216.26     (d) (4) a county board that submits reports that are late, 
216.27  illegible, incomplete, or not in the required format for two out 
216.28  of three consecutive reporting periods is considered 
216.29  noncompliant.  When a county board is found to be noncompliant, 
216.30  the commissioner shall notify the county board of the reason the 
216.31  county board is considered noncompliant and request that the 
216.32  county board develop a corrective action plan stating how the 
216.33  county board plans to correct the problem.  The corrective 
216.34  action plan must be submitted to the commissioner within 45 days 
216.35  after the date the county board received notice of 
216.36  noncompliance.; 
217.1      (e) (5) the final deadline for fiscal reports or amendments 
217.2   to fiscal reports is one year after the date the report was 
217.3   originally due.  If the commissioner does not receive a report 
217.4   by the final deadline, the county board forfeits the funding 
217.5   associated with the report for that reporting period and the 
217.6   county board must repay any funds associated with the report 
217.7   received for that reporting period.; 
217.8      (f) (6) the commissioner may not delay payments, withhold 
217.9   funds, or require repayment under paragraph (c) clause (3) or 
217.10  (e) (5) if the county demonstrates that the commissioner failed 
217.11  to provide appropriate forms, guidelines, and technical 
217.12  assistance to enable the county to comply with the 
217.13  requirements.  If the county board disagrees with an action 
217.14  taken by the commissioner under paragraph (c) clause (3) or 
217.15  (e) (5), the county board may appeal the action according to 
217.16  sections 14.57 to 14.69.; and 
217.17     (g) (7) counties subject to withholding of funds under 
217.18  paragraph (c) clause (3) or forfeiture or repayment of funds 
217.19  under paragraph (e) clause (5) shall not reduce or withhold 
217.20  benefits or services to clients to cover costs incurred due to 
217.21  actions taken by the commissioner under paragraph (c) clause (3) 
217.22  or (e) (5). 
217.23     (18) (r) Allocate federal fiscal disallowances or sanctions 
217.24  for audit exceptions when federal fiscal disallowances or 
217.25  sanctions are based on a statewide random sample for the foster 
217.26  care program under title IV-E of the Social Security Act, United 
217.27  States Code, title 42, in direct proportion to each county's 
217.28  title IV-E foster care maintenance claim for that period. 
217.29     (19) (s) Be responsible for ensuring the detection, 
217.30  prevention, investigation, and resolution of fraudulent 
217.31  activities or behavior by applicants, recipients, and other 
217.32  participants in the human services programs administered by the 
217.33  department. 
217.34     (20) (t) Require county agencies to identify overpayments, 
217.35  establish claims, and utilize all available and cost-beneficial 
217.36  methodologies to collect and recover these overpayments in the 
218.1   human services programs administered by the department. 
218.2      (21) (u) Have the authority to administer a drug rebate 
218.3   program for drugs purchased pursuant to the prescription drug 
218.4   program established under section 256.955 after the 
218.5   beneficiary's satisfaction of any deductible established in the 
218.6   program.  The commissioner shall require a rebate agreement from 
218.7   all manufacturers of covered drugs as defined in section 
218.8   256B.0625, subdivision 13.  Rebate agreements for prescription 
218.9   drugs delivered on or after July 1, 2002, must include rebates 
218.10  for individuals covered under the prescription drug program who 
218.11  are under 65 years of age.  For each drug, the amount of the 
218.12  rebate shall be equal to the rebate as defined for purposes of 
218.13  the federal rebate program in United States Code, title 42, 
218.14  section 1396r-8(c)(1) 1396r-8.  The manufacturers must provide 
218.15  full payment within 30 days of receipt of the state invoice for 
218.16  the rebate within the terms and conditions used for the federal 
218.17  rebate program established pursuant to section 1927 of title XIX 
218.18  of the Social Security Act.  The manufacturers must provide the 
218.19  commissioner with any information necessary to verify the rebate 
218.20  determined per drug.  The rebate program shall utilize the terms 
218.21  and conditions used for the federal rebate program established 
218.22  pursuant to section 1927 of title XIX of the Social Security Act.
218.23     (22) (v) Have the authority to administer the federal drug 
218.24  rebate program for drugs purchased under the medical assistance 
218.25  program as allowed by section 1927 of title XIX of the Social 
218.26  Security Act and according to the terms and conditions of 
218.27  section 1927.  Rebates shall be collected for all drugs that 
218.28  have been dispensed or administered in an outpatient setting and 
218.29  that are from manufacturers who have signed a rebate agreement 
218.30  with the United States Department of Health and Human Services. 
218.31     (23) (w) Have the authority to administer a supplemental 
218.32  drug rebate program for drugs purchased under the medical 
218.33  assistance program.  The commissioner may enter into 
218.34  supplemental rebate contracts with pharmaceutical manufacturers 
218.35  and may require prior authorization for drugs that are from 
218.36  manufacturers that have not signed a supplemental rebate 
219.1   contract.  Prior authorization of drugs shall be subject to the 
219.2   provisions of section 256B.0625, subdivision 13. 
219.3      (24) (x) Operate the department's communication systems 
219.4   account established in Laws 1993, First Special Session chapter 
219.5   1, article 1, section 2, subdivision 2, to manage shared 
219.6   communication costs necessary for the operation of the programs 
219.7   the commissioner supervises.  A communications account may also 
219.8   be established for each regional treatment center which operates 
219.9   communications systems.  Each account must be used to manage 
219.10  shared communication costs necessary for the operations of the 
219.11  programs the commissioner supervises.  The commissioner may 
219.12  distribute the costs of operating and maintaining communication 
219.13  systems to participants in a manner that reflects actual usage. 
219.14  Costs may include acquisition, licensing, insurance, 
219.15  maintenance, repair, staff time and other costs as determined by 
219.16  the commissioner.  Nonprofit organizations and state, county, 
219.17  and local government agencies involved in the operation of 
219.18  programs the commissioner supervises may participate in the use 
219.19  of the department's communications technology and share in the 
219.20  cost of operation.  The commissioner may accept on behalf of the 
219.21  state any gift, bequest, devise or personal property of any 
219.22  kind, or money tendered to the state for any lawful purpose 
219.23  pertaining to the communication activities of the department.  
219.24  Any money received for this purpose must be deposited in the 
219.25  department's communication systems accounts.  Money collected by 
219.26  the commissioner for the use of communication systems must be 
219.27  deposited in the state communication systems account and is 
219.28  appropriated to the commissioner for purposes of this section. 
219.29     (25) (y) Receive any federal matching money that is made 
219.30  available through the medical assistance program for the 
219.31  consumer satisfaction survey.  Any federal money received for 
219.32  the survey is appropriated to the commissioner for this 
219.33  purpose.  The commissioner may expend the federal money received 
219.34  for the consumer satisfaction survey in either year of the 
219.35  biennium. 
219.36     (26) (z) Designate community information and referral call 
220.1   centers and Incorporate cost reimbursement claims from First 
220.2   Call Minnesota and Greater Twin Cities United Way the designated 
220.3   community information and referral call centers into the federal 
220.4   cost reimbursement claiming processes of the department 
220.5   according to federal law, rule, and regulations.  Existing 
220.6   information and referral centers provided by Greater Twin Cities 
220.7   United Way or existing call centers for which Greater Twin 
220.8   Cities United Way has legal authority to represent, shall be 
220.9   included in these designations upon review by the commissioner 
220.10  and assurance that these services are accredited and in 
220.11  compliance with national standards.  Any reimbursement received 
220.12  is appropriated to the commissioner and all designated 
220.13  information and referral centers shall be disbursed to First 
220.14  Call Minnesota and Greater Twin receive payments Cities United 
220.15  Way according to normal department payment schedules established 
220.16  by the commissioner upon final approval of allocation 
220.17  methodologies from the United States Department of Health and 
220.18  Human Services Division of Cost Allocation or other appropriate 
220.19  authorities. 
220.20     (27) (aa) Develop recommended standards for foster care 
220.21  homes that address the components of specialized therapeutic 
220.22  services to be provided by foster care homes with those services.
220.23     Sec. 18.  Minnesota Statutes 2002, section 256.955, 
220.24  subdivision 2, is amended to read: 
220.25     Subd. 2.  [DEFINITIONS.] (a) For purposes of this section, 
220.26  the following definitions apply. 
220.27     (b) "Health plan" has the meaning provided in section 
220.28  62Q.01, subdivision 3. 
220.29     (c) "Health plan company" has the meaning provided in 
220.30  section 62Q.01, subdivision 4. 
220.31     (d) "Qualified individual" means an individual who meets 
220.32  the requirements described in subdivision 2a or 2b, and: 
220.33     (1) who is not determined eligible for medical assistance 
220.34  according to section 256B.0575, who is not determined eligible 
220.35  for medical assistance or general assistance medical care 
220.36  without a spenddown, or who is not enrolled in MinnesotaCare; 
221.1      (2) is not enrolled in prescription drug coverage under a 
221.2   health plan; 
221.3      (3) is not enrolled in prescription drug coverage under a 
221.4   Medicare supplement plan, as defined in sections 62A.31 to 
221.5   62A.44, or policies, contracts, or certificates that supplement 
221.6   Medicare issued by health maintenance organizations or those 
221.7   policies, contracts, or certificates governed by section 1833 or 
221.8   1876 of the federal Social Security Act, United States Code, 
221.9   title 42, section 1395, et seq., as amended; 
221.10     (4) has not had coverage described in clauses (2) and (3) 
221.11  for at least four months prior to application for the program; 
221.12  and 
221.13     (5) is a permanent resident of Minnesota as defined in 
221.14  section 256L.09. 
221.15     Sec. 19.  Minnesota Statutes 2003 Supplement, section 
221.16  256.955, subdivision 2a, is amended to read: 
221.17     Subd. 2a.  [ELIGIBILITY.] An individual satisfying the 
221.18  following requirements and the requirements described in 
221.19  subdivision 2, paragraph (d), is eligible for the prescription 
221.20  drug program: 
221.21     (1) is at least 65 years of age or older; and 
221.22     (2) is eligible as a qualified Medicare beneficiary 
221.23  according to section 256B.057, subdivision 3 or 3a, or is 
221.24  eligible under section 256B.057, subdivision 3 or 3a, and is 
221.25  also eligible for medical assistance or general assistance 
221.26  medical care with a spenddown as defined in section 256B.056, 
221.27  subdivision 5. 
221.28     Sec. 20.  Minnesota Statutes 2002, section 256.955, 
221.29  subdivision 2b, is amended to read: 
221.30     Subd. 2b.  [ELIGIBILITY.] Effective July 1, 2002, an 
221.31  individual satisfying the following requirements and the 
221.32  requirements described in subdivision 2, paragraph (d), is 
221.33  eligible for the prescription drug program: 
221.34     (1) is under 65 years of age; and 
221.35     (2) is eligible as a qualified Medicare beneficiary 
221.36  according to section 256B.057, subdivision 3 or 3a or is 
222.1   eligible under section 256B.057, subdivision 3 or 3a and is also 
222.2   eligible for medical assistance or general assistance medical 
222.3   care with a spenddown as defined in section 256B.056, 
222.4   subdivision 5. 
222.5      Sec. 21.  Minnesota Statutes 2003 Supplement, section 
222.6   256B.06, subdivision 4, is amended to read: 
222.7      Subd. 4.  [CITIZENSHIP REQUIREMENTS.] (a) Eligibility for 
222.8   medical assistance is limited to citizens of the United States, 
222.9   qualified noncitizens as defined in this subdivision, and other 
222.10  persons residing lawfully in the United States. 
222.11     (b) "Qualified noncitizen" means a person who meets one of 
222.12  the following immigration criteria: 
222.13     (1) admitted for lawful permanent residence according to 
222.14  United States Code, title 8; 
222.15     (2) admitted to the United States as a refugee according to 
222.16  United States Code, title 8, section 1157; 
222.17     (3) granted asylum according to United States Code, title 
222.18  8, section 1158; 
222.19     (4) granted withholding of deportation according to United 
222.20  States Code, title 8, section 1253(h); 
222.21     (5) paroled for a period of at least one year according to 
222.22  United States Code, title 8, section 1182(d)(5); 
222.23     (6) granted conditional entrant status according to United 
222.24  States Code, title 8, section 1153(a)(7); 
222.25     (7) determined to be a battered noncitizen by the United 
222.26  States Attorney General according to the Illegal Immigration 
222.27  Reform and Immigrant Responsibility Act of 1996, title V of the 
222.28  Omnibus Consolidated Appropriations Bill, Public Law 104-200; 
222.29     (8) is a child of a noncitizen determined to be a battered 
222.30  noncitizen by the United States Attorney General according to 
222.31  the Illegal Immigration Reform and Immigrant Responsibility Act 
222.32  of 1996, title V, of the Omnibus Consolidated Appropriations 
222.33  Bill, Public Law 104-200; or 
222.34     (9) determined to be a Cuban or Haitian entrant as defined 
222.35  in section 501(e) of Public Law 96-422, the Refugee Education 
222.36  Assistance Act of 1980. 
223.1      (c) All qualified noncitizens who were residing in the 
223.2   United States before August 22, 1996, who otherwise meet the 
223.3   eligibility requirements of this chapter, are eligible for 
223.4   medical assistance with federal financial participation. 
223.5      (d) All qualified noncitizens who entered the United States 
223.6   on or after August 22, 1996, and who otherwise meet the 
223.7   eligibility requirements of this chapter, are eligible for 
223.8   medical assistance with federal financial participation through 
223.9   November 30, 1996. 
223.10     Beginning December 1, 1996, qualified noncitizens who 
223.11  entered the United States on or after August 22, 1996, and who 
223.12  otherwise meet the eligibility requirements of this chapter are 
223.13  eligible for medical assistance with federal participation for 
223.14  five years if they meet one of the following criteria: 
223.15     (i) refugees admitted to the United States according to 
223.16  United States Code, title 8, section 1157; 
223.17     (ii) persons granted asylum according to United States 
223.18  Code, title 8, section 1158; 
223.19     (iii) persons granted withholding of deportation according 
223.20  to United States Code, title 8, section 1253(h); 
223.21     (iv) veterans of the United States armed forces with an 
223.22  honorable discharge for a reason other than noncitizen status, 
223.23  their spouses and unmarried minor dependent children; or 
223.24     (v) persons on active duty in the United States armed 
223.25  forces, other than for training, their spouses and unmarried 
223.26  minor dependent children. 
223.27     Beginning December 1, 1996, qualified noncitizens who do 
223.28  not meet one of the criteria in items (i) to (v) are eligible 
223.29  for medical assistance without federal financial participation 
223.30  as described in paragraph (j). 
223.31     (e) Noncitizens who are not qualified noncitizens as 
223.32  defined in paragraph (b), who are lawfully residing in the 
223.33  United States and who otherwise meet the eligibility 
223.34  requirements of this chapter, are eligible for medical 
223.35  assistance under clauses (1) to (3).  These individuals must 
223.36  cooperate with the Immigration and Naturalization Service to 
224.1   pursue any applicable immigration status, including citizenship, 
224.2   that would qualify them for medical assistance with federal 
224.3   financial participation. 
224.4      (1) Persons who were medical assistance recipients on 
224.5   August 22, 1996, are eligible for medical assistance with 
224.6   federal financial participation through December 31, 1996. 
224.7      (2) Beginning January 1, 1997, persons described in clause 
224.8   (1) are eligible for medical assistance without federal 
224.9   financial participation as described in paragraph (j). 
224.10     (3) Beginning December 1, 1996, persons residing in the 
224.11  United States prior to August 22, 1996, who were not receiving 
224.12  medical assistance and persons who arrived on or after August 
224.13  22, 1996, are eligible for medical assistance without federal 
224.14  financial participation as described in paragraph (j). 
224.15     (f) Nonimmigrants who otherwise meet the eligibility 
224.16  requirements of this chapter are eligible for the benefits as 
224.17  provided in paragraphs (g) to (i).  For purposes of this 
224.18  subdivision, a "nonimmigrant" is a person in one of the classes 
224.19  listed in United States Code, title 8, section 1101(a)(15). 
224.20     (g) Payment shall also be made for care and services that 
224.21  are furnished to noncitizens, regardless of immigration status, 
224.22  who otherwise meet the eligibility requirements of this chapter, 
224.23  if such care and services are necessary for the treatment of an 
224.24  emergency medical condition, except for organ transplants and 
224.25  related care and services and routine prenatal care.  
224.26     (h) For purposes of this subdivision, the term "emergency 
224.27  medical condition" means a medical condition that meets the 
224.28  requirements of United States Code, title 42, section 1396b(v). 
224.29     (i) Pregnant noncitizens who are undocumented or 
224.30  nonimmigrants, who otherwise meet the eligibility requirements 
224.31  of this chapter, are eligible for medical assistance payment 
224.32  without federal financial participation for care and services 
224.33  through the period of pregnancy, and 60 days postpartum, except 
224.34  for labor and delivery.  
224.35     (j) Qualified noncitizens as described in paragraph (d), 
224.36  and all other noncitizens lawfully residing in the United States 
225.1   as described in paragraph (e), who are ineligible for medical 
225.2   assistance with federal financial participation and who 
225.3   otherwise meet the eligibility requirements of chapter 256B and 
225.4   of this paragraph, are eligible for medical assistance without 
225.5   federal financial participation.  Qualified noncitizens as 
225.6   described in paragraph (d) are only eligible for medical 
225.7   assistance without federal financial participation for five 
225.8   years from their date of entry into the United States.  
225.9      (k) Beginning October 1, 2003, persons who are receiving 
225.10  care and rehabilitation services from a nonprofit center 
225.11  established to serve victims of torture and are otherwise 
225.12  ineligible for medical assistance under this chapter or general 
225.13  assistance medical care under section 256D.03 are eligible for 
225.14  medical assistance without federal financial participation.  
225.15  These individuals are eligible only for the period during which 
225.16  they are receiving services from the center.  Individuals 
225.17  eligible under this paragraph shall not be required to 
225.18  participate in prepaid medical assistance. 
225.19     Sec. 22.  Minnesota Statutes 2003 Supplement, section 
225.20  256B.0625, subdivision 9, is amended to read: 
225.21     Subd. 9.  [DENTAL SERVICES.] (a) Medical assistance covers 
225.22  dental services.  Dental services include, with prior 
225.23  authorization, fixed bridges that are cost-effective for persons 
225.24  who cannot use removable dentures because of their medical 
225.25  condition.  
225.26     (b) Coverage of dental services for adults age 21 and over 
225.27  who are not pregnant is subject to a $500 annual benefit limit 
225.28  and covered services are limited to:  
225.29     (1) diagnostic and preventative services; 
225.30     (2) basic restorative services; and 
225.31     (3) emergency services. 
225.32     Emergency services, dentures, and extractions related to 
225.33  dentures are not included in the $500 annual benefit limit. 
225.34     Sec. 23.  Minnesota Statutes 2003 Supplement, section 
225.35  256D.03, subdivision 3, is amended to read: 
225.36     Subd. 3.  [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 
226.1   (a) General assistance medical care may be paid for any person 
226.2   who is not eligible for medical assistance under chapter 256B, 
226.3   including eligibility for medical assistance based on a 
226.4   spenddown of excess income according to section 256B.056, 
226.5   subdivision 5, or MinnesotaCare as defined in paragraph (b), 
226.6   except as provided in paragraph (c), and: 
226.7      (1) who is receiving assistance under section 256D.05, 
226.8   except for families with children who are eligible under 
226.9   Minnesota family investment program (MFIP), or who is having a 
226.10  payment made on the person's behalf under sections 256I.01 to 
226.11  256I.06; or 
226.12     (2) who is a resident of Minnesota; and 
226.13     (i) who has gross countable income not in excess of 75 
226.14  percent of the federal poverty guidelines for the family size, 
226.15  using a six-month budget period and whose equity in assets is 
226.16  not in excess of $1,000 per assistance unit.  Exempt assets, the 
226.17  reduction of excess assets, and the waiver of excess assets must 
226.18  conform to the medical assistance program in section 256B.056, 
226.19  subdivision 3, with the following exception:  the maximum amount 
226.20  of undistributed funds in a trust that could be distributed to 
226.21  or on behalf of the beneficiary by the trustee, assuming the 
226.22  full exercise of the trustee's discretion under the terms of the 
226.23  trust, must be applied toward the asset maximum; or 
226.24     (ii) who has gross countable income above 75 percent of the 
226.25  federal poverty guidelines but not in excess of 175 percent of 
226.26  the federal poverty guidelines for the family size, using a 
226.27  six-month budget period, whose equity in assets is not in excess 
226.28  of the limits in section 256B.056, subdivision 3c, and who 
226.29  applies during an inpatient hospitalization.  
226.30     (b) General assistance medical care may not be paid for 
226.31  applicants or recipients who meet all eligibility requirements 
226.32  of MinnesotaCare as defined in sections 256L.01 to 256L.16, and 
226.33  are adults with dependent children under 21 whose gross family 
226.34  income is equal to or less than 275 percent of the federal 
226.35  poverty guidelines. 
226.36     (c) For applications received on or after October 1, 2003, 
227.1   eligibility may begin no earlier than the date of application.  
227.2   For individuals eligible under paragraph (a), clause (2), item 
227.3   (i), a redetermination of eligibility must occur every 12 
227.4   months.  Individuals are eligible under paragraph (a), clause 
227.5   (2), item (ii), only during inpatient hospitalization but may 
227.6   reapply if there is a subsequent period of inpatient 
227.7   hospitalization.  Beginning January 1, 2000, Minnesota health 
227.8   care program applications completed by recipients and applicants 
227.9   who are persons described in paragraph (b), may be returned to 
227.10  the county agency to be forwarded to the Department of Human 
227.11  Services or sent directly to the Department of Human Services 
227.12  for enrollment in MinnesotaCare.  If all other eligibility 
227.13  requirements of this subdivision are met, eligibility for 
227.14  general assistance medical care shall be available in any month 
227.15  during which a MinnesotaCare eligibility determination and 
227.16  enrollment are pending.  Upon notification of eligibility for 
227.17  MinnesotaCare, notice of termination for eligibility for general 
227.18  assistance medical care shall be sent to an applicant or 
227.19  recipient.  If all other eligibility requirements of this 
227.20  subdivision are met, eligibility for general assistance medical 
227.21  care shall be available until enrollment in MinnesotaCare 
227.22  subject to the provisions of paragraph (e). 
227.23     (d) The date of an initial Minnesota health care program 
227.24  application necessary to begin a determination of eligibility 
227.25  shall be the date the applicant has provided a name, address, 
227.26  and Social Security number, signed and dated, to the county 
227.27  agency or the Department of Human Services.  If the applicant is 
227.28  unable to provide a name, address, Social Security number, and 
227.29  signature when health care is delivered due to a medical 
227.30  condition or disability, a health care provider may act on an 
227.31  applicant's behalf to establish the date of an initial Minnesota 
227.32  health care program application by providing the county agency 
227.33  or Department of Human Services with provider identification and 
227.34  a temporary unique identifier for the applicant.  The applicant 
227.35  must complete the remainder of the application and provide 
227.36  necessary verification before eligibility can be determined.  
228.1   The county agency must assist the applicant in obtaining 
228.2   verification if necessary.  
228.3      (e) County agencies are authorized to use all automated 
228.4   databases containing information regarding recipients' or 
228.5   applicants' income in order to determine eligibility for general 
228.6   assistance medical care or MinnesotaCare.  Such use shall be 
228.7   considered sufficient in order to determine eligibility and 
228.8   premium payments by the county agency. 
228.9      (f) General assistance medical care is not available for a 
228.10  person in a correctional facility unless the person is detained 
228.11  by law for less than one year in a county correctional or 
228.12  detention facility as a person accused or convicted of a crime, 
228.13  or admitted as an inpatient to a hospital on a criminal hold 
228.14  order, and the person is a recipient of general assistance 
228.15  medical care at the time the person is detained by law or 
228.16  admitted on a criminal hold order and as long as the person 
228.17  continues to meet other eligibility requirements of this 
228.18  subdivision.  
228.19     (g) General assistance medical care is not available for 
228.20  applicants or recipients who do not cooperate with the county 
228.21  agency to meet the requirements of medical assistance.  
228.22     (h) In determining the amount of assets of an individual 
228.23  eligible under paragraph (a), clause (2), item (i), there shall 
228.24  be included any asset or interest in an asset, including an 
228.25  asset excluded under paragraph (a), that was given away, sold, 
228.26  or disposed of for less than fair market value within the 60 
228.27  months preceding application for general assistance medical care 
228.28  or during the period of eligibility.  Any transfer described in 
228.29  this paragraph shall be presumed to have been for the purpose of 
228.30  establishing eligibility for general assistance medical care, 
228.31  unless the individual furnishes convincing evidence to establish 
228.32  that the transaction was exclusively for another purpose.  For 
228.33  purposes of this paragraph, the value of the asset or interest 
228.34  shall be the fair market value at the time it was given away, 
228.35  sold, or disposed of, less the amount of compensation received.  
228.36  For any uncompensated transfer, the number of months of 
229.1   ineligibility, including partial months, shall be calculated by 
229.2   dividing the uncompensated transfer amount by the average 
229.3   monthly per person payment made by the medical assistance 
229.4   program to skilled nursing facilities for the previous calendar 
229.5   year.  The individual shall remain ineligible until this fixed 
229.6   period has expired.  The period of ineligibility may exceed 30 
229.7   months, and a reapplication for benefits after 30 months from 
229.8   the date of the transfer shall not result in eligibility unless 
229.9   and until the period of ineligibility has expired.  The period 
229.10  of ineligibility begins in the month the transfer was reported 
229.11  to the county agency, or if the transfer was not reported, the 
229.12  month in which the county agency discovered the transfer, 
229.13  whichever comes first.  For applicants, the period of 
229.14  ineligibility begins on the date of the first approved 
229.15  application. 
229.16     (i) When determining eligibility for any state benefits 
229.17  under this subdivision, the income and resources of all 
229.18  noncitizens shall be deemed to include their sponsor's income 
229.19  and resources as defined in the Personal Responsibility and Work 
229.20  Opportunity Reconciliation Act of 1996, title IV, Public Law 
229.21  104-193, sections 421 and 422, and subsequently set out in 
229.22  federal rules. 
229.23     (j) Undocumented noncitizens and nonimmigrants are 
229.24  ineligible for general assistance medical care, except an 
229.25  individual eligible under paragraph (a), clause (4), remains 
229.26  eligible through September 30, 2003.  For purposes of this 
229.27  subdivision, a nonimmigrant is an individual in one or more of 
229.28  the classes listed in United States Code, title 8, section 
229.29  1101(a)(15), and an undocumented noncitizen is an individual who 
229.30  resides in the United States without the approval or 
229.31  acquiescence of the Immigration and Naturalization Service. 
229.32     (k) Notwithstanding any other provision of law, a 
229.33  noncitizen who is ineligible for medical assistance due to the 
229.34  deeming of a sponsor's income and resources, is ineligible for 
229.35  general assistance medical care. 
229.36     (l) Effective July 1, 2003, general assistance medical care 
230.1   emergency services end.  
230.2      Sec. 24.  Minnesota Statutes 2003 Supplement, section 
230.3   256D.03, subdivision 4, is amended to read: 
230.4      Subd. 4.  [GENERAL ASSISTANCE MEDICAL CARE; SERVICES.] 
230.5   (a)(i) For a person who is eligible under subdivision 3, 
230.6   paragraph (a), clause (2), item (i), general assistance medical 
230.7   care covers, except as provided in paragraph (c): 
230.8      (1) inpatient hospital services; 
230.9      (2) outpatient hospital services; 
230.10     (3) services provided by Medicare certified rehabilitation 
230.11  agencies; 
230.12     (4) prescription drugs and other products recommended 
230.13  through the process established in section 256B.0625, 
230.14  subdivision 13; 
230.15     (5) equipment necessary to administer insulin and 
230.16  diagnostic supplies and equipment for diabetics to monitor blood 
230.17  sugar level; 
230.18     (6) eyeglasses and eye examinations provided by a physician 
230.19  or optometrist; 
230.20     (7) hearing aids; 
230.21     (8) prosthetic devices; 
230.22     (9) laboratory and X-ray services; 
230.23     (10) physician's services; 
230.24     (11) medical transportation except special transportation; 
230.25     (12) chiropractic services as covered under the medical 
230.26  assistance program; 
230.27     (13) podiatric services; 
230.28     (14) dental services and dentures, subject to the 
230.29  limitations specified in section 256B.0625, subdivision 9; 
230.30     (15) outpatient services provided by a mental health center 
230.31  or clinic that is under contract with the county board and is 
230.32  established under section 245.62; 
230.33     (16) day treatment services for mental illness provided 
230.34  under contract with the county board; 
230.35     (17) prescribed medications for persons who have been 
230.36  diagnosed as mentally ill as necessary to prevent more 
231.1   restrictive institutionalization; 
231.2      (18) psychological services, medical supplies and 
231.3   equipment, and Medicare premiums, coinsurance and deductible 
231.4   payments; 
231.5      (19) medical equipment not specifically listed in this 
231.6   paragraph when the use of the equipment will prevent the need 
231.7   for costlier services that are reimbursable under this 
231.8   subdivision; 
231.9      (20) services performed by a certified pediatric nurse 
231.10  practitioner, a certified family nurse practitioner, a certified 
231.11  adult nurse practitioner, a certified obstetric/gynecological 
231.12  nurse practitioner, a certified neonatal nurse practitioner, or 
231.13  a certified geriatric nurse practitioner in independent 
231.14  practice, if (1) the service is otherwise covered under this 
231.15  chapter as a physician service, (2) the service provided on an 
231.16  inpatient basis is not included as part of the cost for 
231.17  inpatient services included in the operating payment rate, and 
231.18  (3) the service is within the scope of practice of the nurse 
231.19  practitioner's license as a registered nurse, as defined in 
231.20  section 148.171; 
231.21     (21) services of a certified public health nurse or a 
231.22  registered nurse practicing in a public health nursing clinic 
231.23  that is a department of, or that operates under the direct 
231.24  authority of, a unit of government, if the service is within the 
231.25  scope of practice of the public health nurse's license as a 
231.26  registered nurse, as defined in section 148.171; and 
231.27     (22) telemedicine consultations, to the extent they are 
231.28  covered under section 256B.0625, subdivision 3b.  
231.29     (ii) Effective October 1, 2003, for a person who is 
231.30  eligible under subdivision 3, paragraph (a), clause (2), item 
231.31  (ii), general assistance medical care coverage is limited to 
231.32  inpatient hospital services, including physician services 
231.33  provided during the inpatient hospital stay.  A $1,000 
231.34  deductible is required for each inpatient hospitalization.  
231.35     (b) Gender reassignment surgery and related services are 
231.36  not covered services under this subdivision unless the 
232.1   individual began receiving gender reassignment services prior to 
232.2   July 1, 1995.  
232.3      (c) In order to contain costs, the commissioner of human 
232.4   services shall select vendors of medical care who can provide 
232.5   the most economical care consistent with high medical standards 
232.6   and shall where possible contract with organizations on a 
232.7   prepaid capitation basis to provide these services.  The 
232.8   commissioner shall consider proposals by counties and vendors 
232.9   for prepaid health plans, competitive bidding programs, block 
232.10  grants, or other vendor payment mechanisms designed to provide 
232.11  services in an economical manner or to control utilization, with 
232.12  safeguards to ensure that necessary services are provided.  
232.13  Before implementing prepaid programs in counties with a county 
232.14  operated or affiliated public teaching hospital or a hospital or 
232.15  clinic operated by the University of Minnesota, the commissioner 
232.16  shall consider the risks the prepaid program creates for the 
232.17  hospital and allow the county or hospital the opportunity to 
232.18  participate in the program in a manner that reflects the risk of 
232.19  adverse selection and the nature of the patients served by the 
232.20  hospital, provided the terms of participation in the program are 
232.21  competitive with the terms of other participants considering the 
232.22  nature of the population served.  Payment for services provided 
232.23  pursuant to this subdivision shall be as provided to medical 
232.24  assistance vendors of these services under sections 256B.02, 
232.25  subdivision 8, and 256B.0625.  For payments made during fiscal 
232.26  year 1990 and later years, the commissioner shall consult with 
232.27  an independent actuary in establishing prepayment rates, but 
232.28  shall retain final control over the rate methodology.  
232.29     (d) Recipients eligible under subdivision 3, paragraph (a), 
232.30  clause (2), item (i), shall pay the following co-payments for 
232.31  services provided on or after October 1, 2003: 
232.32     (1) $3 per nonpreventive visit.  For purposes of this 
232.33  subdivision, a visit means an episode of service which is 
232.34  required because of a recipient's symptoms, diagnosis, or 
232.35  established illness, and which is delivered in an ambulatory 
232.36  setting by a physician or physician ancillary, chiropractor, 
233.1   podiatrist, nurse midwife, advanced practice nurse, audiologist, 
233.2   optician, or optometrist; 
233.3      (2) $25 for eyeglasses; 
233.4      (3) $25 for nonemergency visits to a hospital-based 
233.5   emergency room; 
233.6      (4) $3 per brand-name drug prescription and $1 per generic 
233.7   drug prescription, subject to a $20 per month maximum for 
233.8   prescription drug co-payments.  No co-payments shall apply to 
233.9   antipsychotic drugs when used for the treatment of mental 
233.10  illness; and 
233.11     (5) 50 percent coinsurance on basic restorative dental 
233.12  services.  
233.13     (e) Co-payments shall be limited to one per day per 
233.14  provider for nonpreventive visits, eyeglasses, and nonemergency 
233.15  visits to a hospital-based emergency room.  Recipients of 
233.16  general assistance medical care are responsible for all 
233.17  co-payments in this subdivision.  The general assistance medical 
233.18  care reimbursement to the provider shall be reduced by the 
233.19  amount of the co-payment, except that reimbursement for 
233.20  prescription drugs shall not be reduced once a recipient has 
233.21  reached the $20 per month maximum for prescription drug 
233.22  co-payments.  The provider collects the co-payment from the 
233.23  recipient.  Providers may not deny services to recipients who 
233.24  are unable to pay the co-payment, except as provided in 
233.25  paragraph (f). 
233.26     (f) If it is the routine business practice of a provider to 
233.27  refuse service to an individual with uncollected debt, the 
233.28  provider may include uncollected co-payments under this 
233.29  section.  A provider must give advance notice to a recipient 
233.30  with uncollected debt before services can be denied. 
233.31     (g) Any county may, from its own resources, provide medical 
233.32  payments for which state payments are not made. 
233.33     (h) Chemical dependency services that are reimbursed under 
233.34  chapter 254B must not be reimbursed under general assistance 
233.35  medical care. 
233.36     (i) The maximum payment for new vendors enrolled in the 
234.1   general assistance medical care program after the base year 
234.2   shall be determined from the average usual and customary charge 
234.3   of the same vendor type enrolled in the base year. 
234.4      (j) The conditions of payment for services under this 
234.5   subdivision are the same as the conditions specified in rules 
234.6   adopted under chapter 256B governing the medical assistance 
234.7   program, unless otherwise provided by statute or rule. 
234.8      (k) Inpatient and outpatient payments shall be reduced by 
234.9   five percent, effective July 1, 2003.  This reduction is in 
234.10  addition to the five percent reduction effective July 1, 2003, 
234.11  and incorporated by reference in paragraph (i).  
234.12     (l) Payments for all other health services except 
234.13  inpatient, outpatient, and pharmacy services shall be reduced by 
234.14  five percent, effective July 1, 2003.  
234.15     (m) Payments to managed care plans shall be reduced by five 
234.16  percent for services provided on or after October 1, 2003. 
234.17     (n) A hospital receiving a reduced payment as a result of 
234.18  this section may apply the unpaid balance toward satisfaction of 
234.19  the hospital's bad debts. 
234.20     Sec. 25.  Minnesota Statutes 2003 Supplement, section 
234.21  295.50, subdivision 9b, is amended to read: 
234.22     Subd. 9b.  [PATIENT SERVICES.] (a) "Patient services" means 
234.23  inpatient and outpatient services and other goods and services 
234.24  provided by hospitals, surgical centers, or health care 
234.25  providers.  They include the following health care goods and 
234.26  services provided to a patient or consumer: 
234.27     (1) bed and board; 
234.28     (2) nursing services and other related services; 
234.29     (3) use of hospitals, surgical centers, or health care 
234.30  provider facilities; 
234.31     (4) medical social services; 
234.32     (5) drugs, biologicals, supplies, appliances, and 
234.33  equipment; 
234.34     (6) other diagnostic or therapeutic items or services; 
234.35     (7) medical or surgical services; 
234.36     (8) items and services furnished to ambulatory patients not 
235.1   requiring emergency care; and 
235.2      (9) emergency services; and 
235.3      (10) covered services listed in section 256B.0625 and in 
235.4   Minnesota Rules, parts 9505.0170 to 9505.0475. 
235.5      (b) "Patient services" does not include:  
235.6      (1) services provided to nursing homes licensed under 
235.7   chapter 144A; 
235.8      (2) examinations for purposes of utilization reviews, 
235.9   insurance claims or eligibility, litigation, and employment, 
235.10  including reviews of medical records for those purposes; 
235.11     (3) services provided to and by community residential 
235.12  mental health facilities licensed under Minnesota Rules, parts 
235.13  9520.0500 to 9520.0690, and to and by residential treatment 
235.14  programs for children with severe emotional disturbance licensed 
235.15  or certified under chapter 245A; 
235.16     (4) services provided to and by community support programs 
235.17  and family community support programs approved under Minnesota 
235.18  Rules, parts 9535.1700 to 9535.1760 or certified as mental 
235.19  health rehabilitative services under chapter 256B; 
235.20     (5) services provided to and by community mental health 
235.21  centers as defined in section 245.62, subdivision 2; 
235.22     (6) services provided to and by assisted living programs 
235.23  and congregate housing programs; and 
235.24     (7) hospice care services.; 
235.25     (8) home and community-based waivered services under 
235.26  sections 256B.0915, 256B.49, 256B.491, and 256B.501; 
235.27     (9) targeted case management services under sections 
235.28  256B.0621; 256B.0625, subdivisions 20, 20a, 33, and 44; and 
235.29  256B.094; and 
235.30     (10) services provided to the following:  supervised living 
235.31  facilities for persons with mental retardation or related 
235.32  conditions licensed under Minnesota Rules, parts 4665.0100 to 
235.33  4665.9900; housing with services establishments required to be 
235.34  registered under chapter 144D; board and lodging establishments 
235.35  providing only custodial services that are licensed under 
235.36  chapter 157 and registered under section 157.17 to provide 
236.1   supportive services or health supervision services; adult foster 
236.2   homes as defined in Minnesota Rules, part 9555.5105; day 
236.3   training and habilitation services for adults with mental 
236.4   retardation and related conditions as defined in section 252.41, 
236.5   subdivision 3; boarding care homes as defined in Minnesota 
236.6   Rules, part 4655.0100; adult day care services as defined in 
236.7   section 245A.02, subdivision 2a; and home health agencies as 
236.8   defined in Minnesota Rules, part 9505.0175, subpart 15, or 
236.9   licensed under chapter 144A. 
236.10     <b>[EFFECTIVE DATE.]</b> This section is effective retroactively 
236.11  from January 1, 2004. 
236.12     Sec. 26.  Minnesota Statutes 2003 Supplement, section 
236.13  295.53, subdivision 1, is amended to read: 
236.14     Subdivision 1.  [EXEMPTIONS.] (a) The following payments 
236.15  are excluded from the gross revenues subject to the hospital, 
236.16  surgical center, or health care provider taxes under sections 
236.17  295.50 to 295.59: 
236.18     (1) payments received for services provided under the 
236.19  Medicare program, including payments received from the 
236.20  government, and organizations governed by sections 1833 and 1876 
236.21  of title XVIII of the federal Social Security Act, United States 
236.22  Code, title 42, section 1395, and enrollee deductibles, 
236.23  coinsurance, and co-payments, whether paid by the Medicare 
236.24  enrollee or by a Medicare supplemental coverage as defined in 
236.25  section 62A.011, subdivision 3, clause (10), or by Medicaid 
236.26  payments under title XIX of the federal Social Security Act.  
236.27  Payments for services not covered by Medicare are taxable; 
236.28     (2) payments received for home health care services; 
236.29     (3) payments received from hospitals or surgical centers 
236.30  for goods and services on which liability for tax is imposed 
236.31  under section 295.52 or the source of funds for the payment is 
236.32  exempt under clause (1), (7), (10), or (14); 
236.33     (4) payments received from health care providers for goods 
236.34  and services on which liability for tax is imposed under this 
236.35  chapter or the source of funds for the payment is exempt under 
236.36  clause (1), (7), (10), or (14); 
237.1      (5) amounts paid for legend drugs, other than nutritional 
237.2   products, to a wholesale drug distributor who is subject to tax 
237.3   under section 295.52, subdivision 3, reduced by reimbursements 
237.4   received for legend drugs otherwise exempt under this chapter; 
237.5      (6) payments received by a health care provider or the 
237.6   wholly owned subsidiary of a health care provider for care 
237.7   provided outside Minnesota; 
237.8      (7) payments received from the chemical dependency fund 
237.9   under chapter 254B; 
237.10     (8) payments received in the nature of charitable donations 
237.11  that are not designated for providing patient services to a 
237.12  specific individual or group; 
237.13     (9) payments received for providing patient services 
237.14  incurred through a formal program of health care research 
237.15  conducted in conformity with federal regulations governing 
237.16  research on human subjects.  Payments received from patients or 
237.17  from other persons paying on behalf of the patients are subject 
237.18  to tax; 
237.19     (10) payments received from any governmental agency for 
237.20  services benefiting the public, not including payments made by 
237.21  the government in its capacity as an employer or insurer or 
237.22  payments made by the government for services provided under 
237.23  medical assistance, general assistance medical care, or the 
237.24  MinnesotaCare program, or the medical assistance program 
237.25  governed by title XIX of the federal Social Security Act, United 
237.26  States Code, title 42, sections 1396 to 1396v; 
237.27     (11) government payments received by a regional treatment 
237.28  center the commissioner of human services for state-operated 
237.29  services; 
237.30     (12) payments received by a health care provider for 
237.31  hearing aids and related equipment or prescription eyewear 
237.32  delivered outside of Minnesota; 
237.33     (13) payments received by an educational institution from 
237.34  student tuition, student activity fees, health care service 
237.35  fees, government appropriations, donations, or grants, and for 
237.36  services identified in and provided under an individualized 
238.1   education plan as defined in section 256B.0625 or Code of 
238.2   Federal Regulations, chapter 34, section 300.340(a).  Fee for 
238.3   service payments and payments for extended coverage are taxable; 
238.4   and 
238.5      (14) payments received under the federal Employees Health 
238.6   Benefits Act, United States Code, title 5, section 8909(f), as 
238.7   amended by the Omnibus Reconciliation Act of 1990. 
238.8      (b) Payments received by wholesale drug distributors for 
238.9   legend drugs sold directly to veterinarians or veterinary bulk 
238.10  purchasing organizations are excluded from the gross revenues 
238.11  subject to the wholesale drug distributor tax under sections 
238.12  295.50 to 295.59. 
238.13     <b>[EFFECTIVE DATE.]</b> This section is effective retroactively 
238.14  from January 1, 2004. 
238.15     Sec. 27.  [FETAL ALCOHOL SPECTRUM DISORDER APPROPRIATION 
238.16  TRANSFER.] 
238.17     (a) On July 1 of each fiscal year, beginning July 1, 2004, 
238.18  a portion of the general fund appropriation to the commissioner 
238.19  of health for fetal alcohol spectrum disorder administration and 
238.20  grants shall be transferred to a statewide organization that 
238.21  focuses solely on prevention of and intervention with fetal 
238.22  alcohol spectrum disorder as follows: 
238.23     (1) on July 1, 2004, $340,000; 
238.24     (2) on July 1, 2005, $990,049; and 
238.25     (3) on July 1, 2006, and annually thereafter, $1,190,000. 
238.26     (b) The money shall be used for prevention and intervention 
238.27  services and programs, including, but not limited to, community 
238.28  grants, professional education, public awareness, and 
238.29  diagnosis.  The organization may retain $60,000 of the 
238.30  transferred money for administrative costs.  The organization 
238.31  shall report to the commissioner annually by January 15 on the 
238.32  services and programs funded by the appropriation.  
238.33     Sec. 28.  [RULE AMENDMENT.] 
238.34     The commissioner of human services shall amend Minnesota 
238.35  Rules, part 9555.5105, subpart 20, to expand the definition of 
238.36  "legal representative" to include a health care agent appointed 
239.1   by a principal in a health care power of attorney to make health 
239.2   care decisions as provided in Minnesota Statutes, chapter 145C.  
239.3   The commissioner shall adopt rule amendments required by this 
239.4   section using the authority of Minnesota Statutes, section 
239.5   14.388, subdivision 1, clause (3). 
239.6      Sec. 29.  [COST OF HEALTH CARE REPORTING.] 
239.7      The commissioners of human services, health, and commerce 
239.8   shall meet with representatives of health plan companies as 
239.9   defined in Minnesota Statutes, section 62Q.01, subdivision 4, 
239.10  and hospitals to evaluate reporting requirements for these 
239.11  regulated entities and develop recommendations for reducing 
239.12  required reports.  The commissioner must meet with the specified 
239.13  representatives prior to August 30, 2004, and must submit a 
239.14  consolidated report to the legislature by January 15, 2005.  The 
239.15  report must: 
239.16     (1) identify the name and scope of each required report; 
239.17     (2) evaluate the need for and use of each report, including 
239.18  the value of the report to consumers; 
239.19     (3) evaluate the extent to which the report is used to 
239.20  reduce costs and increase quality of care; 
239.21     (4) identify reports that are no longer required; and 
239.22     (5) specify any statutory changes necessary to eliminate 
239.23  required reports. 
239.24     Sec. 30.  [TRANSFER FROM THE UNIVERSITY OF MINNESOTA.] 
239.25     The transfer provided in Minnesota Statutes, section 
239.26  62J.692, subdivision 10, may occur twice in fiscal year 2005, 
239.27  with the approval of the commissioners of human services, 
239.28  health, and finance, for the purposes of Minnesota Statutes, 
239.29  section 62J.692, subdivision 8. 
239.30     Sec. 31.  [REPEALER.] 
239.31     Minnesota Statutes 2002, section 62H.07, is repealed. 
239.32                             ARTICLE 7 
239.33                    HEALTH CARE COST CONTAINMENT 
239.34     Section 1.  Minnesota Statutes 2002, section 62A.28, is 
239.35  amended to read: 
239.36     62A.28 [COVERAGE FOR SCALP HAIR PROSTHESES.] 
240.1      Subdivision 1.  [SCOPE OF COVERAGE.] This section applies 
240.2   to all policies of accident and health insurance, health 
240.3   maintenance contracts regulated under chapter 62D, health 
240.4   benefit certificates offered through a fraternal benefit society 
240.5   regulated under chapter 64B, and group subscriber contracts 
240.6   offered by nonprofit health service plan corporations regulated 
240.7   under chapter 62C.  This section does not apply to policies 
240.8   designed primarily to provide coverage payable on a per diem, 
240.9   fixed indemnity or nonexpense incurred basis, or policies that 
240.10  provide only accident coverage. 
240.11     Subd. 2.  [REQUIRED COVERAGE.] Every policy, plan, 
240.12  certificate, or contract referred to in subdivision 1 issued or 
240.13  renewed after August 1, 1987, must provide coverage for scalp 
240.14  hair prostheses worn for hair loss suffered as a result of 
240.15  alopecia areata. 
240.16     The coverage required by this section is subject to a 
240.17  policy's the co-payment requirement, coinsurance, deductible, 
240.18  and other enrollee cost sharing requirements that apply to 
240.19  similar types of items under the policy, plan, certificate, or 
240.20  contract, and is limited to a maximum of $350 in any benefit 
240.21  year, exclusive of any deductible. 
240.22     <b>[EFFECTIVE DATE.]</b> This section is effective retroactive to 
240.23  January 1, 2004. 
240.24     Sec. 2.  [62J.43] [BEST PRACTICES AND QUALITY IMPROVEMENT.] 
240.25     (a) To improve quality and reduce health care costs, state 
240.26  agencies shall encourage the adoption of best practice 
240.27  guidelines and participation in best practices measurement 
240.28  activities by physicians, other health care providers, and 
240.29  health plan companies.  The commissioner of health shall 
240.30  facilitate access to best practice guidelines and quality of 
240.31  care measurement information to providers, purchasers, and 
240.32  consumers by: 
240.33     (1) identifying and promoting local community-based, 
240.34  physician-designed best practices care across the Minnesota 
240.35  health care system; 
240.36     (2) disseminating information available to the commissioner 
241.1   on adherence to best practices care by physicians and other 
241.2   health care providers in Minnesota; 
241.3      (3) educating consumers and purchasers on how to 
241.4   effectively use this information in choosing their providers and 
241.5   in making purchasing decisions; and 
241.6      (4) making best practices and quality care measurement 
241.7   information available to enrollees and program participants 
241.8   through the Department of Health's Web site.  The commissioner 
241.9   may convene an advisory committee to ensure that the Web site is 
241.10  designed to provide user friendly and easy accessibility. 
241.11     (b) The commissioner of health shall collaborate with a 
241.12  nonprofit Minnesota quality improvement organization 
241.13  specializing in best practices and quality of care measurements 
241.14  to provide best practices criteria and assist in the collection 
241.15  of the data.  
241.16     (c) The initial best practices and quality of care 
241.17  measurement criteria developed shall include asthma, diabetes, 
241.18  and at least two other preventive health measures.  Hypertension 
241.19  and coronary artery disease shall be included within one year 
241.20  following availability.  
241.21     (d) The commissioners of human services and employee 
241.22  relations may use the data to make decisions about contracts 
241.23  they enter into with health plan companies.  
241.24     (e) This section does not apply if the best practices 
241.25  guidelines authorize or recommend denial of treatment, food, or 
241.26  fluids necessary to sustain life on the basis of the patient's 
241.27  age or expected length of life or the patient's present or 
241.28  predicted disability, degree of medical dependency, or quality 
241.29  of life. 
241.30     (f) The commissioner of health, human services, and 
241.31  employee relations shall report to the legislature by January 
241.32  15, 2005, on the status of best practices and quality of care 
241.33  initiatives, and shall present recommendations to the 
241.34  legislature on any statutory changes needed to increase the 
241.35  effectiveness of these initiatives. 
241.36     (g) This section expires June 30, 2006.  
242.1      Sec. 3.  [62J.81] [DISCLOSURE OF PAYMENTS FOR HEALTH CARE 
242.2   SERVICES.] 
242.3      Subdivision 1.  [REQUIRED DISCLOSURE OF ESTIMATED PAYMENT.] 
242.4   A health care provider, as defined in section 62J.03, 
242.5   subdivision 8, shall, at the request of a consumer, provide that 
242.6   consumer with a good faith estimate of the reimbursement the 
242.7   provider expects to receive from the health plan company in 
242.8   which the consumer is enrolled.  Health plan companies must 
242.9   allow contracted providers to release this information.  A good 
242.10  faith estimate must also be made available at the request of a 
242.11  consumer who is not enrolled in a health plan company.  Payment 
242.12  information provided by a provider to a patient pursuant to this 
242.13  subdivision does not constitute a legally binding estimate of 
242.14  the cost of services.  
242.15     Subd. 2.  [APPLICABILITY.] For purposes of this section, 
242.16  "consumer" does not include a medical assistance, MinnesotaCare, 
242.17  or general assistance medical care enrollee, for services 
242.18  covered under those programs. 
242.19     Sec. 4.  Minnesota Statutes 2002, section 72A.20, is 
242.20  amended by adding a subdivision to read: 
242.21     Subd. 37.  [ELECTRONIC TRANSMISSION OF REQUIRED 
242.22  INFORMATION.] A health carrier, as defined in section 62A.011, 
242.23  subdivision 2, is not in violation of this chapter for 
242.24  electronically transmitting or electronically making available 
242.25  information otherwise required to be delivered in writing under 
242.26  chapters 62A to 62Q and 72A to an enrollee as defined in section 
242.27  62Q.01, subdivision 2a, and with the requirements of those 
242.28  chapters if the following conditions are met: 
242.29     (1) the health carrier informs the enrollee that electronic 
242.30  transmission or access is available and, at the discretion of 
242.31  the health carrier, the enrollee is given one of the following 
242.32  options: 
242.33     (i) electronic transmission or access will occur only if 
242.34  the enrollee affirmatively requests to the health carrier that 
242.35  the required information be electronically transmitted or 
242.36  available and a record of that request is retained by the health 
243.1   carrier; or 
243.2      (ii) electronic transmission or access will automatically 
243.3   occur if the enrollee has not opted out of that manner of 
243.4   transmission by request to the health carrier and requested that 
243.5   the information be provided in writing.  If the enrollee opts 
243.6   out of electronic transmission, a record of that request must be 
243.7   retained by the health carrier; 
243.8      (2) the enrollee is allowed to withdraw the request at any 
243.9   time; 
243.10     (3) if the information transmitted electronically contains 
243.11  individually identifiable data, it must be transmitted to a 
243.12  secured mailbox.  If the information made available 
243.13  electronically contains individually identifiable data, it must 
243.14  be made available at a password-protected secured Web site; 
243.15     (4) the enrollee is provided a customer service number on 
243.16  the enrollee's member card that may be called to request a 
243.17  written copy of the document; and 
243.18     (5) the electronic transmission or electronic availability 
243.19  meets all other requirements of this chapter including, but not 
243.20  limited to, size of the typeface and any required time frames 
243.21  for distribution. 
243.22     Sec. 5.  Minnesota Statutes 2002, section 147.03, 
243.23  subdivision 1, is amended to read: 
243.24     Subdivision 1.  [ENDORSEMENT; RECIPROCITY.] (a) The board 
243.25  may issue a license to practice medicine to any person who 
243.26  satisfies the requirements in paragraphs (b) to (f).  
243.27     (b) The applicant shall satisfy all the requirements 
243.28  established in section 147.02, subdivision 1, paragraphs (a), 
243.29  (b), (d), (e), and (f).  
243.30     (c) The applicant shall: 
243.31     (1) have passed an examination prepared and graded by the 
243.32  Federation of State Medical Boards, the National Board of 
243.33  Medical Examiners, or the United States Medical Licensing 
243.34  Examination program in accordance with section 147.02, 
243.35  subdivision 1, paragraph (c), clause (2); the National Board of 
243.36  Osteopathic Examiners; or the Medical Council of Canada; and 
244.1      (2) have a current license from the equivalent licensing 
244.2   agency in another state or Canada and, if the examination in 
244.3   clause (1) was passed more than ten years ago, either: 
244.4      (i) pass the Special Purpose Examination of the Federation 
244.5   of State Medical Boards with a score of 75 or better within 
244.6   three attempts; or 
244.7      (ii) have a current certification by a specialty board of 
244.8   the American Board of Medical Specialties, of the American 
244.9   Osteopathic Association Bureau of Professional Education, or of 
244.10  the Royal College of Physicians and Surgeons of Canada. 
244.11     (d) The applicant shall pay a fee established by the board 
244.12  by rule.  The fee may not be refunded.  
244.13     (e) The applicant must not be under license suspension or 
244.14  revocation by the licensing board of the state or jurisdiction 
244.15  in which the conduct that caused the suspension or revocation 
244.16  occurred. 
244.17     (f) The applicant must not have engaged in conduct 
244.18  warranting disciplinary action against a licensee, or have been 
244.19  subject to disciplinary action other than as specified in 
244.20  paragraph (e).  If an applicant does not satisfy the 
244.21  requirements stated in this paragraph, the board may issue a 
244.22  license only on the applicant's showing that the public will be 
244.23  protected through issuance of a license with conditions or 
244.24  limitations the board considers appropriate. 
244.25     (g) Upon the request of an applicant, the board may conduct 
244.26  the final interview of the applicant by teleconference. 
244.27     Sec. 6.  [256B.075] [DISEASE MANAGEMENT PROGRAMS.] 
244.28     Subdivision 1.  [GENERAL.] The commissioner shall implement 
244.29  disease management initiatives that seek to improve patient care 
244.30  and health outcomes and reduce health care costs by managing the 
244.31  care provided to recipients with chronic conditions. 
244.32     Subd. 2.  [FEE-FOR-SERVICE.] (a) The commissioner shall 
244.33  develop and implement a disease management program for medical 
244.34  assistance and general assistance medical care recipients who 
244.35  are not enrolled in the prepaid medical assistance or prepaid 
244.36  general assistance medical care programs and who are receiving 
245.1   services on a fee-for-service basis.  The commissioner may 
245.2   contract with an outside organization to provide these services. 
245.3      (b) The commissioner shall seek any federal approval 
245.4   necessary to implement this section and to obtain federal 
245.5   matching funds. 
245.6      Subd. 3.  [PREPAID MANAGED CARE PROGRAMS.] For the prepaid 
245.7   medical assistance, prepaid general assistance medical care, and 
245.8   MinnesotaCare programs, the commissioner shall ensure that 
245.9   contracting health plans implement disease management programs 
245.10  that are appropriate for Minnesota health care program 
245.11  recipients and have been designed by the health plan to improve 
245.12  patient care and health outcomes and reduce health care costs by 
245.13  managing the care provided to recipients with chronic conditions.
245.14     Subd. 4.  [REPORT.] The commissioner of human services 
245.15  shall report to the legislature by January 15, 2005, on the 
245.16  status of disease management initiatives, and shall present 
245.17  recommendations to the legislature on any statutory changes 
245.18  needed to increase the effectiveness of these initiatives. 
245.19     Subd. 5.  [EXPIRATION.] This section expires June 30, 2006. 
245.20     Sec. 7.  [ELECTRONIC HEALTH RECORD WORK GROUP.] 
245.21     (a) The commissioner of health shall convene an Electronic 
245.22  Health Record Planning and Implementation Work Group.  The work 
245.23  group shall consist of representatives of hospitals, health 
245.24  plans, physicians, nurses, other health care providers, academic 
245.25  institutions, state government purchasers, public health 
245.26  providers, citizens, and others with knowledge of health 
245.27  information technology and electronic health records systems. 
245.28     (b) The work group shall:  
245.29     (1) identify barriers to the adoption and implementation of 
245.30  electronic health record systems in Minnesota; 
245.31     (2) identify core components of an electronic health record 
245.32  and standards for interoperability; 
245.33     (3) assess the status of current implementation of 
245.34  electronic health records in Minnesota; 
245.35     (4) assess the costs for primary and acute health care 
245.36  providers, including safety net clinics and hospitals, to 
246.1   implement electronic health records systems; 
246.2      (5) identify partnership models and collaboration potential 
246.3   for implementing electronic health records systems; 
246.4      (6) monitor the development of federal standards, 
246.5   coordinate input to the National Health Information 
246.6   Infrastructure Process, and ensure that Minnesota's 
246.7   recommendations are consistent with emerging federal standards; 
246.8   and 
246.9      (7) identify barriers and develop a plan to develop a 
246.10  unified record system among public hospitals and clinics. 
246.11     (c) By December 31, 2004, the work group shall provide 
246.12  preliminary assessments and recommendations to the chairs of the 
246.13  house and senate committees with jurisdiction over health care 
246.14  policy and financing. 
246.15     The recommendations shall also include the appropriate role 
246.16  of the state in the development, financing, promotion, and 
246.17  implementation of an electronic health records system.  
246.18     Sec. 8.  [REPEALER; BONE MARROW TRANSPLANT MANDATE.] 
246.19     Minnesota Statutes 2002, section 62A.309, is repealed.