1.1 	A bill for an act
1.2 	relating to forecast adjustments; making forecast
1.3 	adjustments for prekindergarten through grade 12
1.4 	education and human services programs; providing for
1.5 	human services savings; appropriating money; amending
1.6 	Minnesota Statutes 2004, sections 256B.0595,
1.7 	subdivision 2; 256B.0625, subdivisions 13e, 13f, by
1.8 	adding subdivisions; Laws 2003, First Special Session
1.9 	chapter 9, article 1, section 53, subdivision 2, as
1.10 	amended; Laws 2003, First Special Session chapter 9,
1.11 	article 1, section 53, subdivision 3, as amended; Laws
1.12 	2003, First Special Session chapter 9, article 1,
1.13 	section 53, subdivision 5, as amended; Laws 2003,
1.14 	First Special Session chapter 9, article 1, section
1.15 	53, subdivision 6, as amended; Laws 2003, First
1.16 	Special Session chapter 9, article 1, section 53,
1.17 	subdivision 11, as amended; Laws 2003, First Special
1.18 	Session chapter 9, article 1, section 53, subdivision
1.19 	12, as amended; Laws 2003, First Special Session
1.20 	chapter 9, article 2, section 55, subdivision 2, as
1.21 	amended; Laws 2003, First Special Session chapter 9,
1.22 	article 2, section 55, subdivision 5, as amended; Laws
1.23 	2003, First Special Session chapter 9, article 2,
1.24 	section 55, subdivision 7, as amended; Laws 2003,
1.25 	First Special Session chapter 9, article 2, section
1.26 	55, subdivision 8; Laws 2003, First Special Session
1.27 	chapter 9, article 2, section 55, subdivision 9, as
1.28 	amended; Laws 2003, First Special Session chapter 9,
1.29 	article 2, section 55, subdivision 12, as amended;
1.30 	Laws 2003, First Special Session chapter 9, article 3,
1.31 	section 20, subdivision 2; Laws 2003, First Special
1.32 	Session chapter 9, article 3, section 20, subdivision
1.33 	4, as amended; Laws 2003, First Special Session
1.34 	chapter 9, article 3, section 20, subdivision 5, as
1.35 	amended; Laws 2003, First Special Session chapter 9,
1.36 	article 3, section 20, subdivision 6, as amended; Laws
1.37 	2003, First Special Session chapter 9, article 3,
1.38 	section 20, subdivision 7, as amended; Laws 2003,
1.39 	First Special Session chapter 9, article 3, section
1.40 	20, subdivision 8, as amended; Laws 2003, First
1.41 	Special Session chapter 9, article 3, section 20,
1.42 	subdivision 9, as amended; Laws 2003, First Special
1.43 	Session chapter 9, article 3, section 20, subdivision
1.44 	10; Laws 2003, First Special Session chapter 9,
1.45 	article 4, section 31, subdivision 2, as amended; Laws
1.46 	2003, First Special Session chapter 9, article 4,
2.1 	section 31, subdivision 3, as amended; Laws 2003,
2.2 	First Special Session chapter 9, article 4, section
2.3 	31, subdivision 4; Laws 2003, First Special Session
2.4 	chapter 9, article 5, section 35, subdivision 2, as
2.5 	amended; Laws 2003, First Special Session chapter 9,
2.6 	article 5, section 35, subdivision 3, as amended; Laws
2.7 	2003, First Special Session chapter 9, article 6,
2.8 	section 4, as amended; Laws 2003, First Special
2.9 	Session chapter 9, article 7, section 11, subdivision
2.10 	2; Laws 2003, First Special Session chapter 9, article
2.11 	7, section 11, subdivision 3, as amended; Laws 2003,
2.12 	First Special Session chapter 9, article 7, section
2.13 	11, subdivision 4; Laws 2003, First Special Session
2.14 	chapter 9, article 8, section 7, subdivision 2, as
2.15 	amended; Laws 2003, First Special Session chapter 9,
2.16 	article 8, section 7, subdivision 3; Laws 2003, First
2.17 	Special Session chapter 9, article 8, section 7,
2.18 	subdivision 5, as amended; Laws 2003, First Special
2.19 	Session chapter 9, article 9, section 9, subdivision
2.20 	2, as amended; proposing coding for new law in
2.21 	Minnesota Statutes, chapter 501B.
2.22 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.23 	ARTICLE 1
2.24 	PREKINDERGARTEN THROUGH GRADE 12 EDUCATION
2.25 	A.  FORECAST ADJUSTMENTS

2.26 	Section 1. Laws 2003, First Special Session chapter 9,
2.27 	article 1, section 53, subdivision 2, as amended by Laws 2004,
2.28 	chapter 272, article 1, section 1, is amended to read:
2.29 		Subd. 2.General education aid. For general education
2.30 	aid under Minnesota Statutes, section 126C.13, subdivision 4:
2.31 	$4,726,466,000    .....     2004
2.32 	$5,026,983,000 $5,281,781,000.....     2005
2.33 	The 2004 appropriation includes $860,552,000 for 2003 and
2.34 	$3,865,914,000 for 2004.
2.35 	The 2005 appropriation includes
2.36 	$1,009,822,000 $1,009,526,000 for 2004
2.37 	and $4,017,161,000 $4,272,255,000 for 2005.

2.38 	Sec. 2. Laws 2003, First Special Session chapter 9,
2.39 	article 1, section 53, subdivision 3, as amended by Laws 2004,
2.40 	chapter 272, article 1, section 2, is amended to read:
2.41 		Subd. 3.Referendum tax base replacement aid. For
2.42 	referendum tax base replacement aid under Minnesota Statutes,
2.43 	section 126C.17, subdivision 7a:
2.44 	$8,096,000    .....     2004
2.45 	$8,596,000 $9,007,000.....     2005
2.46 	The 2004 appropriation includes $1,419,000 for 2003 and
3.1 	$6,677,000 for 2004.
3.2 	The 2005 appropriation includes $1,669,000 for 2004 and
3.3 	$6,927,000 $7,338,000 for 2005.

3.4 	Sec. 3. Laws 2003, First Special Session chapter 9,
3.5 	article 1, section 53, subdivision 5, as amended by Laws 2004,
3.6 	chapter 272, article 1, section 3, is amended to read:
3.7 		Subd. 5.Abatement revenue. For abatement aid under
3.8 	Minnesota Statutes, section 127A.49:
3.9 	$2,436,000     .....     2004
3.10 	$1,559,000 $1,498,000.....     2005
3.11 	The 2004 appropriation includes $472,000 for 2003 and
3.12 	$1,964,000 for 2004.
3.13 	The 2005 appropriation includes $491,000 for 2004 and
3.14 	$1,068,000 $1,007,000 for 2005.

3.15 	Sec. 4. Laws 2003, First Special Session chapter 9,
3.16 	article 1, section 53, subdivision 6, as amended by Laws 2004,
3.17 	chapter 272, article 1, section 4, is amended to read:
3.18 		Subd. 6.Consolidation transition. For districts
3.19 	consolidating under Minnesota Statutes, section 123A.485:
3.20 	$ 35,000     .....     2004
3.21 	$145,000 $-0-.....     2005
3.22 	The 2004 appropriation includes $35,000 for 2003 and $0 for
3.23 	2004.
3.24 	The 2005 appropriation includes $0 for 2004 and $145,000
3.25 	for 2005.

3.26 	Sec. 5. Laws 2003, First Special Session chapter 9,
3.27 	article 1, section 53, subdivision 11, as amended by Laws 2004,
3.28 	chapter 272, article 1, section 5, is amended to read:
3.29 		Subd. 11.Nonpublic pupil aid. For nonpublic pupil
3.30 	education aid under Minnesota Statutes, sections 123B.40 to
3.31 	123B.43 and 123B.87:
3.32 	$14,411,000    .....     2004
3.33 	$15,072,000 $15,304,000.....     2005
3.34 	The 2004 appropriation includes $2,715,000 for 2003 and
3.35 	$11,696,000 for 2004.
3.36 	The 2005 appropriation includes $2,923,000 for 2004 and
4.1 	$12,149,000 $12,381,000 for 2005.

4.2 	Sec. 6. Laws 2003, First Special Session chapter 9,
4.3 	article 1, section 53, subdivision 12, as amended by Laws 2004,
4.4 	chapter 272, article 1, section 6, is amended to read:
4.5 		Subd. 12.Nonpublic pupil transportation. For nonpublic
4.6 	pupil transportation aid under Minnesota Statutes, section
4.7 	123B.92, subdivision 9:
4.8 	$20,471,000    .....     2004
4.9 	$21,421,000 $21,703,000.....     2005
4.10 	The 2004 appropriation includes $3,990,000 for 2003 and
4.11 	$16,481,000 for 2004.
4.12 	The 2005 appropriation includes $4,120,000 for 2004 and
4.13 	$17,301,000 $17,583,000 for 2005.
4.14 	B.  EDUCATION EXCELLENCE

4.15 	Sec. 7. Laws 2003, First Special Session chapter 9,
4.16 	article 2, section 55, subdivision 2, as amended by Laws 2004,
4.17 	chapter 272, article 1, section 7, is amended to read:
4.18 		Subd. 2.Charter school building lease aid. For building
4.19 	lease aid under Minnesota Statutes, section 124D.11, subdivision
4.20 	4:
4.21 	$16,753,000    .....     2004
4.22 	$21,347,000 $21,410,000.....     2005
4.23 	The 2004 appropriation includes $2,524,000 for 2003 and
4.24 	$14,229,000 for 2004.
4.25 	The 2005 appropriation includes $3,557,000 for 2004 and
4.26 	$17,790,000 $17,853,000 for 2005.

4.27 	Sec. 8. Laws 2003, First Special Session chapter 9,
4.28 	article 2, section 55, subdivision 5, as amended by Laws 2004,
4.29 	chapter 272, article 1, section 10, is amended to read:
4.30 		Subd. 5.Integration aid. For integration aid under
4.31 	Minnesota Statutes, section 124D.86, subdivision 5:
4.32 	$55,911,000    .....     2004
4.33 	$55,893,000 $57,756,000.....     2005
4.34 	The 2004 appropriation includes $8,428,000 for 2003 and
4.35 	$47,483,000 for 2004.
4.36 	The 2005 appropriation includes $11,870,000 for 2004 and
5.1 	$44,023,000 $45,886,000 for 2005.

5.2 	Sec. 9. Laws 2003, First Special Session chapter 9,
5.3 	article 2, section 55, subdivision 7, as amended by Laws 2004,
5.4 	chapter 272, article 1, section 11, is amended to read:
5.5 		Subd. 7.Magnet school startup aid. For magnet school
5.6 	startup aid under Minnesota Statutes, section 124D.88:
5.7 	$ 37,000     .....     2004
5.8 	$ 40,000 .....2005 
5.9 	The 2004 appropriation includes $37,000 for 2003 and $0 for
5.10 	2004.
5.11 	The 2005 appropriation includes $0 for 2004 and $40,000 for
5.12 	2005.

5.13 	Sec. 10. Laws 2003, First Special Session chapter 9,
5.14 	article 2, section 55, subdivision 8, is amended to read:
5.15 		Subd. 8.Interdistrict desegregation or integration
5.16 	transportation grants. For interdistrict desegregation or
5.17 	integration transportation grants under Minnesota Statutes,
5.18 	section 124D.87:
5.19 	$5,796,000    .....     2004
5.20 	$8,401,000 $5,279,000.....     2005

5.21 	Sec. 11. Laws 2003, First Special Session chapter 9,
5.22 	article 2, section 55, subdivision 9, as amended by Laws 2004,
5.23 	chapter 272, article 1, section 12, is amended to read:
5.24 		Subd. 9.Success for the future. For American Indian
5.25 	success for the future grants under Minnesota Statutes, section
5.26 	124D.81:
5.27 	$2,061,000    .....     2004
5.28 	$2,137,000 $2,229,000.....     2005
5.29 	The 2004 appropriation includes $351,000 for 2003 and
5.30 	$1,710,000 for 2004.
5.31 	The 2005 appropriation includes $427,000 for 2004 and
5.32 	$1,710,000 $1,802,000 for 2005.

5.33 	Sec. 12. Laws 2003, First Special Session chapter 9,
5.34 	article 2, section 55, subdivision 12, as amended by Laws 2004,
5.35 	chapter 272, article 1, section 13, is amended to read:
5.36 		Subd. 12.Tribal contract schools. For tribal contract
6.1 	school aid under Minnesota Statutes, section 124D.83:
6.2 	$1,617,000    .....     2004
6.3 	$2,185,000 $2,203,000.....     2005
6.4 	The 2004 appropriation includes $285,000 for 2003 and
6.5 	$1,332,000 for 2004.
6.6 	The 2005 appropriation includes $333,000 for 2004 and
6.7 	$1,852,000 $1,870,000 for 2005.
6.8 	C.  SPECIAL PROGRAMS

6.9 	Sec. 13. Laws 2003, First Special Session chapter 9,
6.10 	article 3, section 20, subdivision 2, is amended to read:
6.11 		Subd. 2.Special education; regular. For special
6.12 	education aid under Minnesota Statutes, section 125A.75:
6.13 	$515,091,000  .....     2004
6.14 	$529,460,000 $552,214,000.....     2005
6.15 	The 2004 appropriation includes $90,577,000 for 2003 and
6.16 	$424,514,000 for 2004.
6.17 	The 2005 appropriation includes $106,128,000 for 2004 and
6.18 	$423,332,000 $446,086,000 for 2005.

6.19 	Sec. 14. Laws 2003, First Special Session chapter 9,
6.20 	article 3, section 20, subdivision 4, as amended by Laws 2004,
6.21 	chapter 272, article 1, section 14, is amended to read:
6.22 		Subd. 4.Aid for children with disabilities. For aid
6.23 	under Minnesota Statutes, section 125A.75, subdivision 3, for
6.24 	children with disabilities placed in residential facilities
6.25 	within the district boundaries for whom no district of residence
6.26 	can be determined:
6.27 	$2,311,000     .....     2004
6.28 	$2,550,000 $3,155,000.....     2005
6.29 	If the appropriation for either year is insufficient, the
6.30 	appropriation for the other year is available.

6.31 	Sec. 15. Laws 2003, First Special Session chapter 9,
6.32 	article 3, section 20, subdivision 5, as amended by Laws 2004,
6.33 	chapter 272, article 1, section 15, is amended to read:
6.34 		Subd. 5.Travel for home-based services. For aid for
6.35 	teacher travel for home-based services under Minnesota Statutes,
6.36 	section 125A.75, subdivision 1:
7.1 	$173,000    .....     2004
7.2 	$178,000 $187,000.....     2005
7.3 	The 2004 appropriation includes $34,000 for 2003 and
7.4 	$139,000 for 2004.
7.5 	The 2005 appropriation includes $34,000 for 2004 and
7.6 	$144,000 $153,000 for 2005.

7.7 	Sec. 16. Laws 2003, First Special Session chapter 9,
7.8 	article 3, section 20, subdivision 6, as amended by Laws 2004,
7.9 	chapter 272, article 1, section 16, is amended to read:
7.10 		Subd. 6.Special education; excess costs. For excess
7.11 	cost aid under Minnesota Statutes, section 125A.79, subdivision
7.12 	7:
7.13 	$92,605,000     .....     2004
7.14 	$92,799,000 $95,572,000.....     2005
7.15 	The 2004 appropriation includes $41,754,000 for 2003 and
7.16 	$50,851,000 for 2004.
7.17 	The 2005 appropriation includes $41,216,000 for 2004 and
7.18 	$51,583,000 $54,356,000 for 2005.

7.19 	Sec. 17. Laws 2003, First Special Session chapter 9,
7.20 	article 3, section 20, subdivision 7, as amended by Laws 2004,
7.21 	chapter 272, article 1, section 17, is amended to read:
7.22 		Subd. 7.Litigation costs for special education. For
7.23 	paying the costs a district incurs under Minnesota Statutes,
7.24 	section 125A.75, subdivision 8:
7.25 	$201,000     .....     2004
7.26 	$150,000 $109,000.....     2005

7.27 	Sec. 18. Laws 2003, First Special Session chapter 9,
7.28 	article 3, section 20, subdivision 8, as amended by Laws 2004,
7.29 	chapter 272, article 1, section 18, is amended to read:
7.30 		Subd. 8.Transition for disabled students. For aid for
7.31 	transition programs for children with disabilities under
7.32 	Minnesota Statutes, section 124D.454:
7.33 	$8,570,000     .....     2004
7.34 	$8,760,000 $9,176,000.....     2005
7.35 	The 2004 appropriation includes $1,516,000 for 2003 and
7.36 	$7,054,000 for 2004.
8.1 	The 2005 appropriation includes $1,763,000 for 2004 and
8.2 	$6,997,000 $7,413,000 for 2005.

8.3 	Sec. 19. Laws 2003, First Special Session chapter 9,
8.4 	article 3, section 20, subdivision 9, as amended by Laws 2004,
8.5 	chapter 272, article 1, section 19, is amended to read:
8.6 		Subd. 9.Court-placed special education revenue. For
8.7 	reimbursing serving school districts for unreimbursed eligible
8.8 	expenditures attributable to children placed in the serving
8.9 	school district by court action under Minnesota Statutes,
8.10 	section 125A.79, subdivision 4:
8.11 	$36,000     .....     2004
8.12 	$61,000 $62,000.....     2005

8.13 	Sec. 20. Laws 2003, First Special Session chapter 9,
8.14 	article 3, section 20, subdivision 10, is amended to read:
8.15 		Subd. 10.Out-of-state tuition special education. For
8.16 	special education out-of-state tuition according to Minnesota
8.17 	Statutes, section 125A.79, subdivision 8:
8.18 	$250,000      .....     2004
8.19 	$250,000 $208,000.....     2005
8.20 	D.  FACILITIES AND TECHNOLOGY

8.21 	Sec. 21. Laws 2003, First Special Session chapter 9,
8.22 	article 4, section 31, subdivision 2, as amended by Laws 2004,
8.23 	chapter 272, article 1, section 21, is amended to read:
8.24 		Subd. 2.Health and safety revenue. For health and
8.25 	safety aid according to Minnesota Statutes, section 123B.57,
8.26 	subdivision 5:
8.27 	$5,356,000    .....     2004
8.28 	$1,920,000 $2,099,000.....     2005
8.29 	The 2004 appropriation includes $1,516,000 for 2003 and
8.30 	$3,840,000 for 2004.
8.31 	The 2005 appropriation includes $960,000 for 2004 and
8.32 	$960,000 $1,139,000 for 2005.

8.33 	Sec. 22. Laws 2003, First Special Session chapter 9,
8.34 	article 4, section 31, subdivision 3, as amended by Laws 2004,
8.35 	chapter 272, article 1, section 22, is amended to read:
8.36 		Subd. 3.Debt service equalization. For debt service aid
9.1 	according to Minnesota Statutes, section 123B.53, subdivision 6:
9.2 	$35,598,000     .....     2004
9.3 	$31,220,000 $32,495,000.....     2005
9.4 	The 2004 appropriation includes $5,586,000 for 2003 and
9.5 	$30,012,000 for 2004.
9.6 	The 2005 appropriation includes $7,503,000 for 2004 and
9.7 	$23,717,000 $24,992,000 for 2005.

9.8 	Sec. 23. Laws 2003, First Special Session chapter 9,
9.9 	article 4, section 31, subdivision 4, is amended to read:
9.10 		Subd. 4.Alternative facilities bonding aid. For
9.11 	alternative facilities bonding aid, according to Minnesota
9.12 	Statutes, section 123B.59, subdivision 1:
9.13 	$18,708,000    .....     2004
9.14 	$19,287,000 $20,116,000.....     2005
9.15 	The 2004 appropriation includes $3,278,000 for 2003 and
9.16 	$15,430,000 for 2004.
9.17 	The 2005 appropriation includes $3,857,000 for 2004 and
9.18 	$15,430,000 $16,259,000 for 2005.
9.19 	E.  NUTRITION, SCHOOL ACCOUNTING, OTHER PROGRAMS

9.20 	Sec. 24. Laws 2003, First Special Session chapter 9,
9.21 	article 5, section 35, subdivision 2, as amended by Laws 2004,
9.22 	chapter 272, article 1, section 23, is amended to read:
9.23 		Subd. 2.School lunch. For school lunch aid according to
9.24 	Minnesota Statutes, section 124D.111, and Code of Federal
9.25 	Regulations, title 7, section 210.17:
9.26 	$7,650,000    .....     2004
9.27 	$7,760,000 $7,671,000.....     2005

9.28 	Sec. 25. Laws 2003, First Special Session chapter 9,
9.29 	article 5, section 35, subdivision 3, as amended by Laws 2004,
9.30 	chapter 272, article 1, section 24, is amended to read:
9.31 		Subd. 3.Traditional school breakfast; kindergarten
9.32 	milk. For traditional school breakfast aid and kindergarten
9.33 	milk under Minnesota Statutes, sections 124D.1158 and 124D.118:
9.34 	$4,382,000    .....     2004
9.35 	$4,460,000 $4,548,000.....     2005
9.36 	F.  LIBRARIES

10.1 	Sec. 26. Laws 2003, First Special Session chapter 9,
10.2 	article 6, section 4, as amended by Laws 2004, chapter 272,
10.3 	article 1, section 25, and Laws 2004, chapter 286, section 3, is
10.4 	amended to read:

10.5 	Sec. 4. APPROPRIATIONS.
 10.6 		Subdivision 1.Department of education. The sums
10.7 	indicated in this section are appropriated from the general fund
10.8 	to the department of education for the fiscal years designated.
10.9 		Subd. 2.Basic system support. For basic system support
10.10 	grants under Minnesota Statutes, section 134.355:
10.11 	$8,312,000     .....     2004
10.12 	$8,570,000 $8,939,000.....     2005
10.13 	The 2004 appropriation includes $1,456,000 for 2003 and
10.14 	$6,856,000 for 2004.
10.15 	The 2005 appropriation includes $1,714,000 for 2004 and
10.16 	$6,856,000 $7,225,000 for 2005.
10.17 		Subd. 3.Regional library telecommunications aid. For
10.18 	regional library telecommunications aid under Minnesota
10.19 	Statutes, section 134.355:
10.20 	$960,000     .....     2004
10.21 	$1,200,000 $1,252,000.....     2005
10.22 	The 2004 appropriation includes $960,000 for 2004.
10.23 	The 2005 appropriation includes $240,000 for 2004 and
10.24 	$960,000 $1,012,000 for 2005.
10.25 		Subd. 4.Multicounty, multitype library systems. For
10.26 	grants according to Minnesota Statutes, sections 134.353 and
10.27 	134.354, to multicounty, multitype library systems:
10.28 	$876,000       .....     2004
10.29 	$903,000 $942,000.....     2005
10.30 	The 2004 appropriation includes $153,000 for 2003 and
10.31 	$723,000 for 2004.
10.32 	The 2005 appropriation includes $180,000 for 2004 and
10.33 	$723,000 $762,000 for 2005.
10.34 		Subd. 5.Electronic library for minnesota. For statewide
10.35 	licenses to on-line databases selected in cooperation with the
10.36 	higher education services office for school media centers,
11.1 	public libraries, state government agency libraries, and public
11.2 	or private college or university libraries:
11.3 	$400,000     .....     2004
11.4 	$400,000     .....     2005
11.5 	Any balance in the first year does not cancel but is
11.6 	available in the second year.
11.7 	G.  EARLY CHILDHOOD FAMILY SUPPORT

11.8 	Sec. 27. Laws 2003, First Special Session chapter 9,
11.9 	article 7, section 11, subdivision 2, is amended to read:
11.10 		Subd. 2.School readiness. For revenue for school
11.11 	readiness programs under Minnesota Statutes, sections 124D.15
11.12 	and 124D.16:
11.13 	$ 9,536,000    .....     2004
11.14 	$ 9,258,000 $9,594,000.....     2005
11.15 	The 2004 appropriation includes $1,605,000 for 2003 and
11.16 	$7,931,000 for 2004.
11.17 	The 2005 appropriation includes $1,982,000 for 2004 and
11.18 	$7,276,000 $7,612,000 for 2005.

11.19 	Sec. 28. Laws 2003, First Special Session chapter 9,
11.20 	article 7, section 11, subdivision 3, as amended by Laws 2004,
11.21 	chapter 272, article 1, section 26, is amended to read:
11.22 		Subd. 3.Early childhood family education aid. For early
11.23 	childhood family education aid under Minnesota Statutes, section
11.24 	124D.135:
11.25 	$19,079,000    .....     2004
11.26 	$14,407,000 $13,956,000.....     2005
11.27 	The 2004 appropriation includes $3,239,000 for 2003 and
11.28 	$15,840,000 for 2004.
11.29 	The 2005 appropriation includes $3,959,000 for 2004 and
11.30 	$10,448,000 $9,997,000 for 2005.

11.31 	Sec. 29. Laws 2003, First Special Session chapter 9,
11.32 	article 7, section 11, subdivision 4, is amended to read:
11.33 		Subd. 4.Health and developmental screening aid. For
11.34 	health and developmental screening aid under Minnesota Statutes,
11.35 	sections 121A.17 and 121A.19:
11.36 	$2,581,000    .....     2004
12.1 	$2,661,000 $2,776,000.....     2005
12.2 	The 2004 appropriation includes $452,000 for 2003 and
12.3 	$2,129,000 for 2004.
12.4 	The 2005 appropriation includes $532,000 for 2004 and
12.5 	$2,129,000 $2,244,000 for 2005.
12.6 	H.  PREVENTION

12.7 	Sec. 30. Laws 2003, First Special Session chapter 9,
12.8 	article 8, section 7, subdivision 2, as amended by Laws 2004,
12.9 	chapter 272, article 1, section 27, is amended to read:
12.10 		Subd. 2.Community education aid. For community
12.11 	education aid under Minnesota Statutes, section 124D.20:
12.12 	$5,351,000    .....     2004
12.13 	$3,137,000 $3,198,000.....     2005
12.14 	The 2004 appropriation includes $956,000 for 2003 and
12.15 	$4,395,000 for 2004.
12.16 	The 2005 appropriation includes $1,098,000 for 2004 and
12.17 	$2,039,000 $2,100,000 for 2005.

12.18 	Sec. 31. Laws 2003, First Special Session chapter 9,
12.19 	article 8, section 7, subdivision 3, is amended to read:
12.20 		Subd. 3.Adults with disabilities program aid. For
12.21 	adults with disabilities programs under Minnesota Statutes,
12.22 	section 124D.56:
12.23 	$688,000       .....     2004
12.24 	$710,000 $741,000.....     2005
12.25 	The 2004 appropriation includes $120,000 for 2003 and
12.26 	$568,000 for 2004.
12.27 	The 2005 appropriation includes $142,000 for 2004 and
12.28 	$568,000 $599,000 for 2005.

12.29 	Sec. 32. Laws 2003, First Special Session chapter 9,
12.30 	article 8, section 7, subdivision 5, as amended by Laws 2004,
12.31 	chapter 272, article 1, section 28, is amended to read:
12.32 		Subd. 5.School-age care revenue. For extended day care
12.33 	aid under Minnesota Statutes, section 124D.22:
12.34 	$40,000    .....     2004
12.35 	$24,000 $30,000.....     2005
12.36 	The 2004 appropriation includes $14,000 for 2003 and
13.1 	$26,000 for 2004.
13.2 	The 2005 appropriation includes $6,000 for 2004 and
13.3 	$18,000 $24,000 for 2005.
13.4 	I.  SELF-SUFFICIENCY AND LIFELONG LEARNING

13.5 	Sec. 33. Laws 2003, First Special Session chapter 9,
13.6 	article 9, section 9, subdivision 2, as amended by Laws 2004,
13.7 	chapter 272, article 1, section 29, is amended to read:
13.8 		Subd. 2.Adult basic education aid. For adult basic
13.9 	education aid under Minnesota Statutes, section 124D.52, in
13.10 	fiscal year 2004 and Minnesota Statutes, section 124D.531, in
13.11 	fiscal year 2005:
13.12 	$33,014,000    .....     2004
13.13 	$35,808,000 $37,444,000.....     2005
13.14 	The 2004 appropriation includes $5,827,000 for 2003 and
13.15 	$27,187,000 for 2004.
13.16 	The 2005 appropriation includes $6,796,000 for 2004 and
13.17 	$29,012,000 $30,648,000 for 2005.

13.18 	Sec. 34. EFFECTIVE DATE.
 13.19 	This article is effective the day following final enactment.

13.20 	ARTICLE 2
13.21 	HUMAN SERVICES FORECAST ADJUSTMENTS

13.22 	Section 1. DEPARTMENT OF HUMAN SERVICES FORECAST ADJUSTMENT.
 13.23 	The dollar amounts shown are added to or, if shown in
13.24 	parentheses, are subtracted from the appropriations in Laws
13.25 	2003, First Special Session chapter 14, as amended by Laws 2004,
13.26 	chapter 272, or other law, and are appropriated from the general
13.27 	fund, or any other fund named, to the Department of Human
13.28 	Services for the purposes specified in this article, to be
13.29 	available for the fiscal year indicated for each purpose.  The
13.30 	figure "2005" used in this article means that the appropriation
13.31 	or appropriations listed are available for the fiscal year
13.32 	ending June 30, 2005.
13.33 	SUMMARY BY FUND
13.34 	2005
13.35 	General Fund                                          33,797,000
13.36 	Health Care Access                                   (33,947,000)
14.1 	TANF                                                 (17,645,000)
14.2 	TOTAL                                                (17,795,000)

14.3 	Sec. 2. COMMISSIONER OF HUMAN SERVICES
 14.4 		Subdivision 1.Total
14.5 	Appropriation                                        (17,795,000)
14.6 	Summary by Fund
14.7 	General                                33,797,000
14.8 	Health Care Access                    (33,947,000)
14.9 	TANF                                  (17,645,000)
14.10 	Subd. 2.  Revenue and Pass-Through
14.11 	TANF                                                    (814,000)
14.12 	Subd. 3.  Basic Health Care Grants
14.13 	General                                               44,502,000
14.14 	Health Care Access                                   (33,947,000)
14.15 	The amount that may be spent from this
14.16 	appropriation for each purpose is as
14.17 	follows:
14.18 	(a) MinnesotaCare
14.19 	Health Care Access                                   (33,947,000)
14.20 	(b) MA Basic Health Care - Families and Children
14.21 	General                                               39,343,000
14.22 	(c) MA Basic Health Care - Elderly and Disabled
14.23 	General                                              (20,641,000)
14.24 	(d) General Assistance Medical Care
14.25 	General                                               25,800,000
14.26 	Subd. 4.  Continuing Care Grants
14.27 	General                                              (12,968,000)
14.28 	The amount that may be spent from this
14.29 	appropriation for each purpose is as
14.30 	follows:
14.31 	(a) MA Long-Term Care Waivers
14.32 	General                                               (6,218,000)
14.33 	(b) MA Long-Term Care Facilities
14.34 	General                                              (15,645,000)
14.35 	(c) Group Residential Housing
14.36 	General                                                6,017,000
14.37 	(d) Chemical Dependency Entitlement Grants
14.38 	General                                                2,878,000
15.1 	Subd. 5.  Economic Support Grants
15.2 	General                                               22,940,000
15.3 	TANF                                                 (16,831,000)
15.4 	The amount that may be spent from this
15.5 	appropriation for each purpose is as
15.6 	follows:
15.7 	(a) Minnesota Family Investment Program
15.8 	General                                               21,000,000
15.9 	TANF                                                 (16,831,000)
15.10 	(b) General Assistance                                 2,840,000
15.11 	(c) Minnesota Supplemental Aid                          (900,000)
15.12 		Subd. 6.Child Care
15.13 	Total Appropriation                                  (20,677,000)
15.14 	General Fund                       (20,677,000)

15.15 	ARTICLE 3
15.16 	HUMAN SERVICES SAVINGS

15.17 	Section 1. Minnesota Statutes 2004, section 256B.0595,
15.18 	subdivision 2, is amended to read:
15.19 		Subd. 2.Period of ineligibility.  (a) For any
15.20 	uncompensated transfer occurring on or before August 10, 1993,
15.21 	the number of months of ineligibility for long-term care
15.22 	services shall be the lesser of 30 months, or the uncompensated
15.23 	transfer amount divided by the average medical assistance rate
15.24 	for nursing facility services in the state in effect on the date
15.25 	of application.  The amount used to calculate the average
15.26 	medical assistance payment rate shall be adjusted each July 1 to
15.27 	reflect payment rates for the previous calendar year.  The
15.28 	period of ineligibility begins with the month in which the
15.29 	assets were transferred.  If the transfer was not reported to
15.30 	the local agency at the time of application, and the applicant
15.31 	received long-term care services during what would have been the
15.32 	period of ineligibility if the transfer had been reported, a
15.33 	cause of action exists against the transferee for the cost of
15.34 	long-term care services provided during the period of
15.35 	ineligibility, or for the uncompensated amount of the transfer,
15.36 	whichever is less.  The action may be brought by the state or
15.37 	the local agency responsible for providing medical assistance
16.1 	under chapter 256G.  The uncompensated transfer amount is the
16.2 	fair market value of the asset at the time it was given away,
16.3 	sold, or disposed of, less the amount of compensation received.
16.4 	(b) For uncompensated transfers made after August 10, 1993,
16.5 	the number of months of ineligibility for long-term care
16.6 	services shall be the total uncompensated value of the resources
16.7 	transferred divided by the average medical assistance rate for
16.8 	nursing facility services in the state in effect on the date of
16.9 	application.  The amount used to calculate the average medical
16.10 	assistance payment rate shall be adjusted each July 1 to reflect
16.11 	payment rates for the previous calendar year.  The period of
16.12 	ineligibility begins with the first day of the month after the
16.13 	month in which the assets were transferred except that if one or
16.14 	more uncompensated transfers are made during a period of
16.15 	ineligibility, the total assets transferred during the
16.16 	ineligibility period shall be combined and a penalty period
16.17 	calculated to begin on the first day of the month after the
16.18 	month in which the first uncompensated transfer was made.  If
16.19 	the transfer was reported to the local agency after the date
16.20 	that advance notice of a period of ineligibility that affects
16.21 	the next month could be provided to the recipient and the
16.22 	recipient received medical assistance services or the transfer
16.23 	was not reported to the local agency, and the applicant or
16.24 	recipient received medical assistance services during what would
16.25 	have been the period of ineligibility if the transfer had been
16.26 	reported, a cause of action exists against the transferee for
16.27 	the cost of medical assistance services provided during the
16.28 	period of ineligibility, or for the uncompensated amount of the
16.29 	transfer, whichever is less.  The action may be brought by the
16.30 	state or the local agency responsible for providing medical
16.31 	assistance under chapter 256G.  The uncompensated transfer
16.32 	amount is the fair market value of the asset at the time it was
16.33 	given away, sold, or disposed of, less the amount of
16.34 	compensation received.  Effective for transfers made on or after
16.35 	March 1, 1996, involving persons who apply for medical
16.36 	assistance on or after April 13, 1996, no cause of action exists
17.1 	for a transfer unless:
17.2 	(1) the transferee knew or should have known that the
17.3 	transfer was being made by a person who was a resident of a
17.4 	long-term care facility or was receiving that level of care in
17.5 	the community at the time of the transfer;
17.6 	(2) the transferee knew or should have known that the
17.7 	transfer was being made to assist the person to qualify for or
17.8 	retain medical assistance eligibility; or
17.9 	(3) the transferee actively solicited the transfer with
17.10 	intent to assist the person to qualify for or retain eligibility
17.11 	for medical assistance.
17.12 	(c) If a calculation of a penalty period results in a
17.13 	partial month, payments for long-term care services shall be
17.14 	reduced in an amount equal to the fraction, except that in
17.15 	calculating the value of uncompensated transfers, if the total
17.16 	value of all uncompensated transfers made in a month not
17.17 	included in an existing penalty period does not exceed $200,
17.18 	then such transfers shall be disregarded for each month prior to
17.19 	the month of application for or during receipt of medical
17.20 	assistance.
17.21 	
EFFECTIVE DATE. This section is effective for transfers
17.22 	occurring on or after July 1, 2005.

17.23 	Sec. 2. Minnesota Statutes 2004, section 256B.0625, is
17.24 	amended by adding a subdivision to read:
17.25 		Subd. 3c.Health services policy committee. The
17.26 	commissioner, after receiving recommendations from professional
17.27 	physician associations, professional associations representing
17.28 	licensed nonphysician health care professionals, and consumer
17.29 	groups, shall establish a 13-member Health Services Policy
17.30 	Committee, which consists of 12 voting members and one nonvoting
17.31 	member.  The Health Services Policy Committee shall advise the
17.32 	commissioner regarding health services pertaining to the
17.33 	administration of health care benefits covered under the medical
17.34 	assistance, general assistance medical care, and MinnesotaCare
17.35 	programs.  The Health Services Policy Committee shall meet at
17.36 	least quarterly.  The Health Services Policy Committee shall
18.1 	annually elect a physician chair from among its members, who
18.2 	shall work directly with the commissioner's medical director, to
18.3 	establish the agenda for each meeting.

18.4 	Sec. 3. Minnesota Statutes 2004, section 256B.0625, is
18.5 	amended by adding a subdivision to read:
18.6 		Subd. 3d.Health services policy committee members. The
18.7 	Health Services Policy Committee consists of:
18.8 	(1) seven voting members who are licensed physicians
18.9 	actively engaged in the practice of medicine in Minnesota, one
18.10 	of whom must be actively engaged in the treatment of persons
18.11 	with mental illness, and three of whom must represent health
18.12 	plans currently under contract to serve medical assistance
18.13 	recipients;
18.14 	(2) two voting members who are physician specialists
18.15 	actively practicing their specialty in Minnesota;
18.16 	(3) two voting members who are nonphysician health care
18.17 	professionals licensed or registered in their profession and
18.18 	actively engaged in their practice of their profession in
18.19 	Minnesota;
18.20 	(4) one consumer who shall serve as a voting member; and 
18.21 	(5) the commissioner's medical director who shall serve as
18.22 	a nonvoting member.
18.23 	Members of the Health Services Policy Committee shall not
18.24 	be employed by the Department of Human Services, except for the
18.25 	medical director.

18.26 	Sec. 4. Minnesota Statutes 2004, section 256B.0625, is
18.27 	amended by adding a subdivision to read:
18.28 		Subd. 3e.Health services policy committee terms and
18.29 	compensation. Committee members shall serve staggered
18.30 	three-year terms, with one-third of the voting members' terms
18.31 	expiring annually.  Members may be reappointed by the
18.32 	commissioner.  The commissioner may require more frequent Health
18.33 	Services Policy Committee meetings as needed.  An honorarium of
18.34 	$200 per meeting and reimbursement for mileage and parking shall
18.35 	be paid to each committee member in attendance except the
18.36 	medical director.  The Health Services Policy Committee does not
19.1 	expire as provided in section 15.059, subdivision 6.

19.2 	Sec. 5. Minnesota Statutes 2004, section 256B.0625,
19.3 	subdivision 13e, is amended to read:
19.4 		Subd. 13e.Payment rates.  (a) The basis for determining
19.5 	the amount of payment shall be the lower of the actual
19.6 	acquisition costs of the drugs plus a fixed dispensing fee; the
19.7 	maximum allowable cost set by the federal government or by the
19.8 	commissioner plus the fixed dispensing fee; or the usual and
19.9 	customary price charged to the public.  The amount of payment
19.10 	basis must be reduced to reflect all discount amounts applied to
19.11 	the charge by any provider/insurer agreement or contract for
19.12 	submitted charges to medical assistance programs.  The net
19.13 	submitted charge may not be greater than the patient liability
19.14 	for the service.  The pharmacy dispensing fee shall be $3.65,
19.15 	except that the dispensing fee for intravenous solutions which
19.16 	must be compounded by the pharmacist shall be $8 per bag, $14
19.17 	per bag for cancer chemotherapy products, and $30 per bag for
19.18 	total parenteral nutritional products dispensed in one liter
19.19 	quantities, or $44 per bag for total parenteral nutritional
19.20 	products dispensed in quantities greater than one liter.  Actual
19.21 	acquisition cost includes quantity and other special discounts
19.22 	except time and cash discounts.  The actual acquisition cost of
19.23 	a drug shall be estimated by the commissioner, at average
19.24 	wholesale price minus 11.5 percent, except that where a drug has
19.25 	had its wholesale price reduced as a result of the actions of
19.26 	the National Association of Medicaid Fraud Control Units, the
19.27 	estimated actual acquisition cost shall be the reduced average
19.28 	wholesale price, without the 11.5 percent deduction. The actual
19.29 	acquisition cost of antihemophilic factor drugs shall be
19.30 	estimated at the average wholesale price minus 30 percent.The
19.31 	maximum allowable cost of a multisource drug may be set by the
19.32 	commissioner and it shall be comparable to, but no higher than,
19.33 	the maximum amount paid by other third-party payors in this
19.34 	state who have maximum allowable cost programs.  Establishment
19.35 	of the amount of payment for drugs shall not be subject to the
19.36 	requirements of the Administrative Procedure Act.
20.1 	(b) An additional dispensing fee of $.30 may be added to
20.2 	the dispensing fee paid to pharmacists for legend drug
20.3 	prescriptions dispensed to residents of long-term care
20.4 	facilities when a unit dose blister card system, approved by the
20.5 	department, is used.  Under this type of dispensing system, the
20.6 	pharmacist must dispense a 30-day supply of drug.  The National
20.7 	Drug Code (NDC) from the drug container used to fill the blister
20.8 	card must be identified on the claim to the department.  The
20.9 	unit dose blister card containing the drug must meet the
20.10 	packaging standards set forth in Minnesota Rules, part
20.11 	6800.2700, that govern the return of unused drugs to the
20.12 	pharmacy for reuse.  The pharmacy provider will be required to
20.13 	credit the department for the actual acquisition cost of all
20.14 	unused drugs that are eligible for reuse.  Over-the-counter
20.15 	medications must be dispensed in the manufacturer's unopened
20.16 	package.  The commissioner may permit the drug clozapine to be
20.17 	dispensed in a quantity that is less than a 30-day supply.
20.18 	(c) Whenever a generically equivalent product is available,
20.19 	payment shall be on the basis of the actual acquisition cost of
20.20 	the generic drug, or on the maximum allowable cost established
20.21 	by the commissioner.
20.22 	(d) The basis for determining the amount of payment for
20.23 	drugs administered in an outpatient setting shall be the lower
20.24 	of the usual and customary cost submitted by the provider, the
20.25 	average wholesale price minus five percent, or the maximum
20.26 	allowable cost set by the federal government under United States
20.27 	Code, title 42, chapter 7, section 1396r-8(e), and Code of
20.28 	Federal Regulations, title 42, section 447.332, or by the
20.29 	commissioner under paragraphs (a) to (c) or the amount
20.30 	established for Medicare by the United States Department of
20.31 	Health and Human Services pursuant to title XVIII, section 1847a
20.32 	of the federal Social Security Act.
20.33 	(e) The commissioner may negotiate lower reimbursement
20.34 	rates for specialty pharmacy products than the rates specified
20.35 	in paragraph (a).  The commissioner may require individuals
20.36 	enrolled in the health care programs administered by the
21.1 	department to obtain specialty pharmacy products from providers
21.2 	with whom the commissioner has negotiated lower reimbursement
21.3 	rates.  Specialty pharmacy products are defined as those used by
21.4 	a small number of recipients or recipients with complex and
21.5 	chronic diseases that require expensive and challenging drug
21.6 	regimens.  Examples of these conditions include, but are not
21.7 	limited to:  multiple sclerosis, HIV/AIDS, transplantation,
21.8 	hepatitis C, growth hormone deficiency, Crohn's Disease,
21.9 	rheumatoid arthritis, and certain forms of cancer.  Specialty
21.10 	pharmaceutical products include injectable and infusion
21.11 	therapies, biotechnology drugs, high-cost therapies, and
21.12 	therapies that require complex care.  The commissioner shall
21.13 	consult with the formulary committee to develop a list of
21.14 	specialty pharmacy products subject to this paragraph.  In
21.15 	consulting with the formulary committee in developing this list,
21.16 	the commissioner shall take into consideration the population
21.17 	served by specialty pharmacy products, the current delivery
21.18 	system and standard of care in the state, and access to care
21.19 	issues.  The commissioner shall have the discretion to adjust
21.20 	the reimbursement rate to prevent access to care issues.

21.21 	Sec. 6. Minnesota Statutes 2004, section 256B.0625,
21.22 	subdivision 13f, is amended to read:
21.23 		Subd. 13f.Prior authorization.  (a) The Formulary
21.24 	Committee shall review and recommend drugs which require prior
21.25 	authorization.  The Formulary Committee shall establish general
21.26 	criteria to be used for the prior authorization of brand-name
21.27 	drugs for which generically equivalent drugs are available, but
21.28 	the committee is not required to review each brand-name drug for
21.29 	which a generically equivalent drug is available.
21.30 	(b) Prior authorization may be required by the commissioner
21.31 	before certain formulary drugs are eligible for payment.  The
21.32 	Formulary Committee may recommend drugs for prior authorization
21.33 	directly to the commissioner.  The commissioner may also request
21.34 	that the Formulary Committee review a drug for prior
21.35 	authorization.  Before the commissioner may require prior
21.36 	authorization for a drug:
22.1 	(1) the commissioner must provide information to the
22.2 	Formulary Committee on the impact that placing the drug on prior
22.3 	authorization may have on the quality of patient care and on
22.4 	program costs, information regarding whether the drug is subject
22.5 	to clinical abuse or misuse, and relevant data from the state
22.6 	Medicaid program if such data is available;
22.7 	(2) the Formulary Committee must review the drug, taking
22.8 	into account medical and clinical data and the information
22.9 	provided by the commissioner; and
22.10 	(3) the Formulary Committee must hold a public forum and
22.11 	receive public comment for an additional 15 days.
22.12 	The commissioner must provide a 15-day notice period before
22.13 	implementing the prior authorization.
22.14 	(c) Prior authorization shall not be required or utilized
22.15 	for any atypical antipsychotic drug prescribed for the treatment
22.16 	of mental illness if:
22.17 	(1) there is no generically equivalent drug available; and
22.18 	(2) the drug was initially prescribed for the recipient
22.19 	prior to July 1, 2003; or
22.20 	(3) the drug is part of the recipient's current course of
22.21 	treatment.
22.22 	This paragraph applies to any multistate preferred drug list or
22.23 	supplemental drug rebate program established or administered by
22.24 	the commissioner.
22.25 	(d) Prior authorization shall not be required or utilized
22.26 	for any antihemophilic factor drug prescribed for the treatment
22.27 	of hemophilia and blood disorders where there is no generically
22.28 	equivalent drug available if the prior authorization is used in
22.29 	conjunction with any supplemental drug rebate program or
22.30 	multistate preferred drug list established or administered by
22.31 	the commissioner.  This paragraph expires July 1, 2005.
22.32 	(e) The commissioner may require prior authorization for
22.33 	brand name drugs whenever a generically equivalent product is
22.34 	available, even if the prescriber specifically indicates
22.35 	"dispense as written-brand necessary" on the prescription as
22.36 	required by section 151.21, subdivision 2.
23.1 	(f) Notwithstanding this subdivision, the commissioner may
23.2 	automatically require prior authorization, for a period not to
23.3 	exceed 180 days, for any drug that is approved by the United
23.4 	States Food and Drug Administration on or after July 1, 2005.
23.5 	The 180-day period begins no later than the first day that a
23.6 	drug is available for shipment to pharmacies within the state.
23.7 	The Formulary Committee shall recommend to the commissioner
23.8 	general criteria to be used for the prior authorization of the
23.9 	drugs, but the committee is not required to review each
23.10 	individual drug.  In order to continue prior authorizations for
23.11 	a drug after the 180-day period has expired, the commissioner
23.12 	must follow provisions of this subdivision.

23.13 	Sec. 7. [501B.895] PUBLIC HEALTH CARE PROGRAMS AND
23.14 	CERTAIN TRUSTS.
23.15 	(a) It is the public policy of this state that individuals
23.16 	use all available resources to pay for the cost of long-term
23.17 	care services, as defined in section 256B.0595, before turning
23.18 	to Minnesota health care program funds, and that trust
23.19 	instruments should not be permitted to shield available
23.20 	resources of an individual or an individual's spouse from such
23.21 	use.
23.22 	(b) When a state or local agency makes a determination on
23.23 	an application by the individual or the individual's spouse for
23.24 	payment of long-term care services through a Minnesota public
23.25 	health care program pursuant to chapter 256B, any irrevocable
23.26 	inter-vivos trust or any legal instrument, device, or
23.27 	arrangement similar to an irrevocable inter-vivos trust created
23.28 	on or after July 1, 2005, containing assets or income of an
23.29 	individual or an individual's spouse, including those created by
23.30 	a person, court, or administrative body with legal authority to
23.31 	act in place of, at the direction of, upon the request of, or on
23.32 	behalf of the individual or individual's spouse, becomes
23.33 	revocable for the sole purpose of that determination.  For
23.34 	purposes of this section, any inter-vivos trust and any legal
23.35 	instrument, device, or arrangement similar to an inter-vivos
23.36 	trust:
24.1 	(1) shall be deemed to be located in and subject to the
24.2 	laws of this state; and 
24.3 	(2) is created as of the date it is fully executed by or on
24.4 	behalf of all of the settlors or others.
24.5 	(c) For purposes of this section, a legal instrument,
24.6 	device, or arrangement similar to an irrevocable inter-vivos
24.7 	trust means any instrument, device, or arrangement which
24.8 	involves a grantor who transfers or whose property is
24.9 	transferred by another including, but not limited to, any court,
24.10 	administrative body, or anyone else with authority to act on
24.11 	their behalf or at their direction, to an individual or entity
24.12 	with fiduciary, contractual, or legal obligations to the grantor
24.13 	or others to be held, managed, or administered by the individual
24.14 	or entity for the benefit of the grantor or others.  These legal
24.15 	instruments, devices, or other arrangements are irrevocable
24.16 	inter-vivos trusts for purposes of this section.
24.17 	(d) In the event of a conflict between this section and the
24.18 	provisions of an irrevocable trust created on or after July 1,
24.19 	2005, this section shall control.
24.20 	(e) This section does not apply to trusts that qualify as
24.21 	supplemental needs trusts under section 501B.89 or to trusts
24.22 	meeting the criteria of United States Code, title 42, section
24.23 	1396p (d)(4)(a) and (c) for purposes of eligibility for medical
24.24 	assistance.
24.25 	(f) This section applies to all trusts first created on or
24.26 	after July 1, 2005, as permitted under United States Code, title
24.27 	42, section 1396p, and to all interests in real or personal
24.28 	property regardless of the date on which the interest was
24.29 	created, reserved, or acquired.

24.30 	Sec. 8. LIMITING WAIVER GROWTH.
 24.31 	(a) For each year of the biennium ending June 30, 2007, the
24.32 	commissioner shall limit the new diversion caseload growth in
24.33 	the MR/RC waiver to 75 additional allocations.  Notwithstanding
24.34 	Minnesota Statutes, section 256B.0916, subdivision 5, paragraph
24.35 	(b), the available diversion allocations shall be awarded to
24.36 	support individuals whose health and safety needs result in an
25.1 	imminent risk of an institutional placement at any time during
25.2 	the fiscal year.
25.3 	(b) For each year of the biennium ending June 30, 2007, the
25.4 	commissioner of human services shall make available additional
25.5 	allocations for community alternatives for disabled individuals
25.6 	waivered services covered under Minnesota Statutes, section
25.7 	256B.49, at a rate of 105 per month or 1,260 per year, plus any
25.8 	additional legislatively authorized growth.  Priorities for the
25.9 	allocation of funds shall be for individuals anticipated to be
25.10 	discharged from institutional settings or who are at imminent
25.11 	risk of a placement in an institutional setting.
25.12 	(c) For each year of the biennium ending June 30, 2007, the
25.13 	commissioner shall make available additional allocations for
25.14 	traumatic brain injury waivered services covered under Minnesota
25.15 	Statutes, section 256B.49, at a rate of 165 per year.
25.16 	Priorities for the allocation of funds shall be for individuals
25.17 	anticipated to be discharged from institutional settings or who
25.18 	are at imminent risk of a placement in an institutional setting.