1.1 	A bill for an act
1.2 	relating to the financing of state government; making supplemental 
1.3 	appropriations for early childhood and family prekindergarten through grade 12, 
1.4 	and postsecondary education; environment, natural resources, and agriculture; 
1.5 	clean water legacy; economic development, transportation; public safety; state 
1.6 	government; veterans affairs; miscellaneous health and human services; health 
1.7 	care federal compliance; children and families federal compliance; assisted 
1.8 	living; long-term care; modifying certain statutory provisions and laws; providing 
1.9 	for certain programs; fixing and limiting fees; authorizing rulemaking; requiring 
1.10 	reports; appropriating money;amending Minnesota Statutes 2004, sections 
1.11 	43A.17, subdivision 4; 62A.045; 62S.05, by adding a subdivision; 62S.08, 
1.12 	subdivision 3; 62S.081, subdivision 4; 62S.10, subdivision 2; 62S.13, by adding 
1.13 	a subdivision; 62S.14, subdivision 2; 62S.15; 62S.20, subdivision 1; 62S.24, 
1.14 	subdivisions 1, 3, 4, by adding subdivisions; 62S.25, subdivision 6, by adding 
1.15 	a subdivision; 62S.26; 62S.266, subdivision 2; 62S.29, subdivision 1; 62S.30; 
1.16 	84.0835, subdivision 3; 85.32, subdivision 1; 97A.028, subdivision 3; 114D.30, 
1.17 	subdivision 2, as added; 119B.13, by adding a subdivision; 123B.57, subdivision 
1.18 	6; 124D.518, subdivision 4; 124D.52, subdivision 1; 125A.27, subdivisions 
1.19 	7, 8, 11, 15, 18; 125A.29; 125A.30; 125A.32; 125A.33; 125A.48; 136A.101, 
1.20 	subdivision 8; 136A.15, subdivision 9; 136A.1701, subdivisions 4, 7; 137.022, 
1.21 	subdivision 4; 137.17, subdivisions 1, 3; 144.0724, subdivisions 3, 4; 144.6501, 
1.22 	subdivision 6; 144A.071, subdivisions 4a, 4c; 144A.10, by adding a subdivision; 
1.23 	144A.161, subdivisions 1, 2, 3, 4, 5, 5a, 5c, 6, 8, by adding a subdivision; 
1.24 	144A.4605; 144D.01, by adding a subdivision; 144D.015; 144D.02; 144D.03, 
1.25 	subdivision 2, by adding a subdivision; 144D.04; 144D.05; 144D.065; 181.101; 
1.26 	216C.41, subdivision 4; 256.01, by adding a subdivision; 256B.02, subdivision 
1.27 	9; 256B.056, subdivision 2, by adding subdivisions; 256B.0595, subdivisions 
1.28 	1, 3, 4; 256B.0625, subdivision 20; 256B.0945, subdivision 1; 256B.431, by 
1.29 	adding a subdivision; 256B.434, by adding subdivisions; 256B.437, subdivision 
1.30 	3; 256B.438, subdivision 4; 256B.69, subdivision 9, by adding a subdivision; 
1.31 	256B.76; 256J.021; 256J.626, subdivision 2; 256L.04, subdivision 10; 256L.11, 
1.32 	by adding a subdivision; 256L.17, subdivision 2; 326.105; 469.334, subdivisions 
1.33 	1, 4; 518.551, subdivision 7; Minnesota Statutes 2005 Supplement, sections 
1.34 	35.05; 119B.13, subdivisions 1, 7; 121A.19; 124D.111, subdivision 1; 124D.135, 
1.35 	subdivision 1; 124D.175; 124D.531, subdivision 1; 125A.28; 144.1476, 
1.36 	subdivision 4; 144A.071, subdivision 1a; 216C.41, subdivision 3; 256B.0571; 
1.37 	256B.0595, subdivision 2; 256B.06, subdivision 4; 256B.0918, subdivisions 1, 3, 
1.38 	4; 256B.0946, subdivision 1; 256B.434, subdivision 4; 256B.5012, subdivision 
2.1 	6; 256B.69, subdivision 23; 256D.03, subdivision 3; 256L.03, subdivision 
2.2 	5; 299A.641, subdivision 3; 299A.78;  Laws 1998, chapter 404, section 15, 
2.3 	subdivision 2, as amended; Laws 2005, chapter 136, article 1, section 10; Laws 
2.4 	2005, First Special Session chapter 1, article 2, section 3, subdivision 2; article 
2.5 	3, section 2, subdivision 4; Laws 2005, First Special Session chapter 4, article 
2.6 	7, section 55; article 9, section 5, subdivision 8; Laws 2005, First Special 
2.7 	Session chapter 5, article 1, sections 47; 54, subdivisions 2, 3, 5, 6, 7, 8; article 
2.8 	2, section 84, subdivisions 2, 3, 4, 6, 7, 10; article 3, section 18, subdivisions 2, 
2.9 	3, 4, 5, 6, 7; article 4, section 25, subdivisions 2, 3, 4, 6; article 5, section 17, 
2.10 	subdivisions 2, 3; article 6, section 1, subdivisions 2, 3, 5; article 7, section 20, 
2.11 	subdivisions 2, 3, 4; article 8, section 8, subdivisions 2, 3, 5; proposing coding 
2.12 	for new law in Minnesota Statutes, chapters 4; 16E; 43A; 62S; 85; 116J; 116U; 
2.13 	120B; 122A; 124D; 144; 144A; 144D; 197; 245; 256; 256B; 256D; 299A; 341; 
2.14 	proposing coding for new law as Minnesota Statutes, chapter 144G; repealing 
2.15 	Minnesota Statutes 2004, sections 62J.694; 116J.543; 137.17, subdivisions 2, 4; 
2.16 	144.395; 245.465, subdivision 2; 256B.0945, subdivisions 5, 6, 7, 8, 9; 256B.83; 
2.17 	Minnesota Statutes 2005 Supplement, section 256B.0571, subdivisions 2, 5, 
2.18 	11; Minnesota Rules, part 4668.0215.
2.19 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.20 	ARTICLE 1
2.21 	SUMMARY

2.22	Section 1. APPROPRIATIONS SUMMARY.

								
2.23	(General Fund Only, Excluding Forecast Adjustments)
	
2.24	APPROPRIATIONS
		2006
		2007
		TOTAL
	
2.25	Early Childhood Education 
	$
	124,000
	$
	14,926,000
	$
	15,050,000
	
2.26	K-12 Education
		5,469,000
		2,764,000
		 8,233,000
	
2.27	Higher Education
				5,000,000
		5,000,000
	
2.28	Environment & Agriculture
		577,000
		1,838,000
		2,415,000
	
2.29	Clean Water Legacy
				15,000,000
		15,000,000
	
2.30	Economic Development 
				29,552,000
		29,552,000
	
2.31	Transportation
				692,000
		 692,000
	
2.32	Public Safety
		3,846,000
		15,774,000
		19,620,000
	
2.33	State Government 
				 2,422,000
		2,422,000
	
2.34	Veterans Affairs
		250,000
		3,230,000
		3,480,000
	
2.35	Health & Human Services
		30,989,000
		75,663,000
		106,652,000
	
2.36	SUBTOTAL
	$
	41,255,000
	$
	166,861,000
	$
	208,116,000
	
2.37	CANCELLATIONS
		250,000
				250,000
	
3.1	TRANSFERS IN
		2,933,000
				2,933,000
	
3.2	TOTAL
	$
	38,072,000
	$
	 166,861,000
	$
	204,933,000

3.3 	ARTICLE 2
3.4 	EARLY CHILDHOOD EDUCATION

3.5 	Section 1. EARLY EDUCATION APPROPRIATIONS.
 3.6 	The sums shown in the columns marked "APPROPRIATIONS" are added to or, if 
3.7 	shown in parentheses, subtracted from the appropriations in Laws 2005, First Special 
3.8 	Session chapter 4, article 9, or other law to the agencies and for the purposes specified 
3.9 	in this article.  The appropriations are from the general fund or another named fund and 
3.10 	are available for the fiscal years indicated for each purpose.  The figures "2006" and 
3.11 	"2007" used in this article mean that the addition to or subtraction from the appropriation 
3.12 	listed under them is available for the fiscal year ending June 30, 2006, or June 30, 
3.13 	2007, respectively. "The first year" is fiscal year 2006. "The second year" is fiscal year 
3.14 	2007. "The biennium" is fiscal years 2006 and 2007.  Supplementary appropriations and 
3.15 	reductions to appropriations for the fiscal year ending June 30, 2006, are effective the 
3.16 	day following final enactment.
3.17 		Subdivision 1.Summary
 
3.18	SUMMARY BY FUND
	
3.19			2006
		2007
		TOTAL
	
3.20	General
	$
	124,000
	$
	14,926,000
	$
	15,050,000

3.21
3.22	Subd.  2.Department of Human Services; 
basic sliding fee child care waiting list
 					
3.23 	(a) For child care assistance for eligible 
3.24 	families on the basic sliding fee waiting list 
3.25 	under Minnesota Statutes, section 119B.03, 
3.26 	subdivision 2, as of July 1, 2006.

3.27	General Fund
	-0-
	3,842,000

3.28
3.29	(b) For basic sliding fee child care assistance 
grants in fiscal year 2007
		-0-
		4,055,000
	
4.1 	The general fund base is increased 
4.2 	by $1,596,000 in fiscal year 2008 and 
4.3 	$1,732,000 in fiscal year 2009 for basic 
4.4 	sliding fee child care assistance grants.

4.5
4.6
4.7	(c) For the state share of systems cost to 
implement the provider rate differential for 
accreditation
		-0-
		3,000
	
4.8 	(d) As determined by the commissioner, 
4.9 	counties may use up to six percent of either 
4.10 	calendar year 2008 or 2009 allocations under 
4.11 	Minnesota Statutes, section 119B.03, to 
4.12 	fund accelerated payments that may occur 
4.13 	during the preceding calendar year during 
4.14 	conversion to the automated child care 
4.15 	assistance program system. If conversion 
4.16 	occurs over two calendar years, counties 
4.17 	may use up to three percent of the combined 
4.18 	calendar year allocations to fund accelerated 
4.19 	payments. Funding advanced under this 
4.20 	subdivision shall be considered part of the 
4.21 	allocation from which it was originally 
4.22 	advanced for purposes of setting future 
4.23 	allocations under Minnesota Statutes, section 
4.24 	119B.03, subdivisions 6, 6a, 6b, and 8, and 
4.25 	shall include funding for administrative costs 
4.26 	under Minnesota Statutes, section 119B.15. 
4.27 	Notwithstanding the provisions of any 
4.28 	section to the contrary, this provision shall 
4.29 	sunset December 31, 2009.
4.30 	(e) Increased child care funds from the 
4.31 	federal Deficit Reduction Act of 2005 may 
4.32 	be allocated by the commissioner for the 
4.33 	basic sliding fee child care program.

5.1 	Sec. 2. Minnesota Statutes 2005 Supplement, section 119B.13, subdivision 1, is 
5.2 	amended to read:
5.3 		Subdivision 1.Subsidy restrictions. (a)(i) Effective July 1, 2005, the commissioner 
5.4 	of human services shall modify the rate tables for child care centers published in 
5.5 	Department of Human Services Bulletin No. 03-68-07 so that in counties with regional or 
5.6 	statewide cells, the higher of the 100th percentile of the 2002 market rate survey data or 
5.7 	the rate currently identified in the bulletin will be the maximum rate. The rates established 
5.8 	in this clause will be considered as the previous year's rates for purposes of the increase in 
5.9 	item (iii), and shall be compared to the 100th percentile of current market rates.
5.10 	(ii) For the period between July 1, 2005, and through the full implementation of the 
5.11 	new rates under item (iii), the rates published in Department of Human Services Bulletin 
5.12 	No. 03-68-07 as adjusted by item (i) shall remain in effect.
5.13 	(iii) (a) Beginning January  July 1, 2006, the maximum rate paid for child care 
5.14 	assistance in any county or multicounty region under the child care fund shall be the lesser 
5.15 	of the 75th percentile rate for like-care arrangements in the county or multicounty region 
5.16 	as surveyed by the commissioner or the previous year's rate for like-care arrangements in 
5.17 	the county effective January 1, 2006, increased by 1.75 six percent.
5.18 	(iv) (b) Rate changes shall be implemented for services provided in March 
5.19 	 September 2006 unless a participant eligibility redetermination or a new provider 
5.20 	agreement is completed between JanuaryJuly 1, 2006, and February 28 August 31, 2006.
5.21 	As necessary, appropriate notice of adverse action must be made according to 
5.22 	Minnesota Rules, part 3400.0185, subparts 3 and 4.
5.23 	New cases approved on or after JanuaryJuly 1, 2006, shall have the maximum rates 
5.24 	under item (iii)paragraph (a), implemented immediately.
5.25 	(b)(c) Not less than once every two years, the commissioner shall survey rates 
5.26 	charged by child care providers in Minnesota to determine the 75th percentile for 
5.27 	like-care arrangements in counties. When the commissioner determines that, using the 
5.28 	commissioner's established protocol, the number of providers responding to the survey is 
5.29 	too small to determine the 75th percentile rate for like-care arrangements in a county or 
5.30 	multicounty region, the commissioner may establish the 75th percentile maximum rate 
5.31 	based on like-care arrangements in a county, region, or category that the commissioner 
5.32 	deems to be similar.
5.33 	(c)(d) A rate which includes a special needs rate paid under subdivision 3 may be in 
5.34 	excess of the maximum rate allowed under this subdivision.
5.35 	(d)(e) The department shall monitor the effect of this paragraph on provider rates. 
5.36 	The county shall pay the provider's full charges for every child in care up to the maximum 
6.1 	established. The commissioner shall determine the maximum rate for each type of care on 
6.2 	an hourly, full-day, and weekly basis, including special needs and handicapped care.
6.3 	(e)(f) When the provider charge is greater than the maximum provider rate allowed, 
6.4 	the parent is responsible for payment of the difference in the rates in addition to any 
6.5 	family co-payment fee.

6.6 	EFFECTIVE DATE. This section is effective July 1, 2006.

6.7 	Sec. 3. Minnesota Statutes 2004, section 119B.13, is amended by adding a subdivision 
6.8 	to read:
6.9 		Subd. 3a.Provider rate differential for accreditation. A family child care 
6.10 	provider or child care center shall be paid a 15 percent differential above the maximum rate 
6.11 	established in subdivision 1, up to the actual provider rate, if the provider or center holds a 
6.12 	current early childhood development credential or is accredited.  For a family child care 
6.13 	provider, early childhood development credential and accreditation includes an individual 
6.14 	who has earned a child development associate degree, a diploma in child development from 
6.15 	a Minnesota state technical college, or a bachelor's degree in early childhood education 
6.16 	from an accredited college or university, or who is accredited by the National Association 
6.17 	for Family Child Care or the Competency Based Training and Assessment Program.  For a 
6.18 	child care center, accreditation includes accreditation by the National Association for the 
6.19 	Education of Young Children, the Council on Accreditation, the National Early Childhood 
6.20 	Program Accreditation, the National School-Age Care Association, or the National Head 
6.21 	Start Association Program of Excellence.  For Montessori programs, accreditation includes 
6.22 	the American Montessori Society, Association of Montessori International-USA, or the 
6.23 	National Center for Montessori Education.

6.24 	EFFECTIVE DATE. This section is effective July 1, 2006.

6.25 	Sec. 4. Minnesota Statutes 2005 Supplement, section 119B.13, subdivision 7, is 
6.26 	amended to read:
6.27 		Subd. 7.Absent days. (a) Child care providers may not be reimbursed for more 
6.28 	than 25 full-day absent days per child, excluding holidays, in a fiscal year, or for more than 
6.29 	ten consecutive full-day absent days, unless the child has a documented medical condition 
6.30 	that causes more frequent absences. Documentation of medical conditions must be on 
6.31 	the forms and submitted according to the timelines established by the commissioner. If a 
6.32 	child attends for part of the time authorized to be in care in a day, but is absent for part of 
6.33 	the time authorized to be in care in that same day, the absent time will be reimbursed but 
7.1 	the time will not count toward the ten consecutive or 25 cumulative absent day limits. 
7.2 	If a child attends part of an authorized day, payment to the provider must be for the full 
7.3 	amount of care authorized for that day. Child care providers may only be reimbursed for 
7.4 	absent days if the provider has a written policy for child absences and charges all other 
7.5 	families in care for similar absences. 
7.6 	(b) Child care providers must be reimbursed for up to ten federal or state holidays 
7.7 	or designated holidays per year when the provider charges all families for these days 
7.8 	and the holiday or designated holiday falls on a day when the child is authorized to be 
7.9 	in attendance. Parents may substitute other cultural or religious holidays for the ten 
7.10 	recognized state and federal holidays. Holidays do not count toward the ten consecutive or 
7.11 	25 cumulative absent day limits. 
7.12 	(c) A family or child care provider may not be assessed an overpayment for an 
7.13 	absent day payment unless (1) there was an error in the amount of care authorized for the 
7.14 	family, (2) all of the allowed full-day absent payments for the child have been paid, or (3) 
7.15 	the family or provider did not timely report a change as required under law.
7.16 	(d) The provider and family must receive notification of the number of absent days 
7.17 	used upon initial provider authorization for a family and when the family has used 15 
7.18 	cumulative absent days. Upon statewide implementation of the Minnesota Electronic 
7.19 	Child Care System, the provider and family authorization for a family and ongoing 
7.20 	notification of the number of absent days used as of the date of the notification.

7.21 	EFFECTIVE DATE. This section is effective July 1, 2006.

7.22 	Sec. 5. Minnesota Statutes 2005 Supplement, section 121A.19, is amended to read:
7.23 	121A.19 DEVELOPMENTAL SCREENING AID.
7.24 	Each school year, the state must pay a district $50 for each three-year-old child 
7.25 	screened; $40 for each four-year-old child screened; and $30 for each five-year-old child
7.26 	or student screened by the district prior to kindergarten according to the requirements of 
7.27 	section 121A.17. The amount of state aid for each child or student screened shall be: (1) 
7.28 	$50 for a child screened at age three; (2) $40 for a child screened at age four; (3) $30 
7.29 	for a child screened at age five or six prior to kindergarten; and (4) $30 for a student 
7.30 	screened within 30 days after first enrolling in a public school kindergarten if the student 
7.31 	has not previously been screened according to the requirements of section 121A.17. If this 
7.32 	amount of aid is insufficient, the district may permanently transfer from the general fund 
7.33 	an amount that, when added to the aid, is sufficient. Developmental screening aid shall not 
7.34 	be paid for any student who is screened more than 30 days after the first day of attendance 
8.1 	at a public school kindergarten, except if a student transfers to another public school 
8.2 	kindergarten within 30 days after first enrolling in a Minnesota public school kindergarten 
8.3 	program. In this case, if the student has not been screened, the district to which the student 
8.4 	transfers may receive developmental screening aid for screening that student when the 
8.5 	screening is performed within 30 days of the transfer date.

8.6 	Sec. 6. [124D.129] EDUCATE PARENTS PARTNERSHIP.
8.7 	The commissioner may work in partnership with health care providers and 
8.8 	community organizations to provide parent information to parents of newborns at the 
8.9 	time of birth. The commissioner may coordinate the partnership and the distribution of 
8.10 	informational material to the parents of newborns before they leave the hospital with 
8.11 	early childhood organizations, including, but not limited to, early childhood family 
8.12 	education, child care resource and referral, and interagency early intervention committees. 
8.13 	The commissioner may develop a resource Web site that promotes, at a minimum, the 
8.14 	department Web site for information and links to resources on child development, parent 
8.15 	education, child care, and consumer safety information. 

8.16 	Sec. 7. Minnesota Statutes 2005 Supplement, section 124D.135, subdivision 1, is 
8.17 	amended to read:
8.18 		Subdivision 1.Revenue. The revenue for early childhood family education 
8.19 	programs for a school district equals $96 for fiscal year 2005 and $104 $112 for fiscal year 
8.20 	2006 2007 and later, times the greater of:
8.21 	(1) 150; or
8.22 	(2) the number of people under five years of age residing in the district on October 1 
8.23 	of the previous school year.

8.24 	Sec. 8. [124D.162] KINDERGARTEN READINESS ASSESSMENT.
8.25 	The commissioner of education may implement a kindergarten readiness assessment 
8.26 	representative of incoming kindergartners. The assessment must be based on the 
8.27 	Department of Education Kindergarten Readiness Assessment at kindergarten entrance 
8.28 	study.

8.29 	Sec. 9. Minnesota Statutes 2005 Supplement, section 124D.175, is amended to read:
8.30 	124D.175 MINNESOTA EARLY LEARNING FOUNDATION PROPOSAL.
8.31 	(a) The commissioner must make a grant to the Minnesota Early Learning 
8.32 	Foundation to implement an early childhood development grant program for low-income 
9.1 	and other challenged families that increases the effectiveness and expands the capacity of 
9.2 	public and nonpublic early childhood development programs, which may include child 
9.3 	care programs, and leads to improved early childhood parent education and children's 
9.4 	kindergarten readiness. The program must include:
9.5 	(1) grant awards to existing early childhood development program providers that 
9.6 	also provide parent education programs and to qualified providers proposing to implement 
9.7 	pilot programs for this same purpose;
9.8 	(2) grant awards to enable low-income families to participate in these programs;
9.9 	(3) grant awards to improve overall programmatic quality; and
9.10 	(4) an evaluation of the programmatic and financial efficacy of all these programs, 
9.11 	which may be performed using measures of services, staffing, and management systems 
9.12 	that provide consistent information about system performance, show trends, confirm 
9.13 	successes, and identify potential problems in early childhood development programs.
9.14 	This grant program must not supplant existing early childhood development programs 
9.15 	or child care funds.
9.16 	(b) The commissioner must contract withmake a grant to a private nonprofit, section 
9.17 	501(c)(3) organization to implement the requirements of paragraph (a).  The private 
9.18 	nonprofit organization must be governed by a board of directors composed of members 
9.19 	from the public and nonpublic sectors, where the nonpublic sector members compose a 
9.20 	simple majority of board members and where the public sector members are state and local 
9.21 	government officials, kindergarten through grade 12 or postsecondary educators, and early 
9.22 	childhood providers appointed by the governor. Membership on the board of directors 
9.23 	by a state agency official are work duties for the official and are not a conflict of interest 
9.24 	under section 43A.38. The board of directors must appoint an executive director and must 
9.25 	seek advice from geographically and ethnically diverse parents of young children and 
9.26 	representatives of early childhood development providers, kindergarten through grade 12 
9.27 	and postsecondary educators, public libraries, and the business sector.
9.28 	 The board of directors is subject to the open meeting law under chapter 13D. 
9.29 	All other terms and conditions under which board members serve and operate must be 
9.30 	described in the articles and bylaws of the organization. The private nonprofit organization 
9.31 	is not a state agency and is not subject to laws governing public agencies except the 
9.32 	provisions of chapter 13, salary limits under section 15A.0815, subdivision 2, and audits 
9.33 	by the legislative auditor under chapter 3 apply.
9.34 	(c) In addition to the duties under paragraph (a), the Minnesota Early Learning 
9.35 	Foundation (MELF) shall evaluate the effectiveness of the voluntary NorthStar Quality 
10.1 	Improvement and Rating System. The NorthStar Quality Improvement and Rating System 
10.2 	must:
10.3 	(1) provide consumer information for parents on child care and early education 
10.4 	program quality and ratings;
10.5 	(2) set indicators to identify quality in care and early education settings, including 
10.6 	licensed family child care and centers, tribal providers and programs, Head Start and 
10.7 	school-age programs, and identify quality programs through ratings and ongoing 
10.8 	monitoring of programs;
10.9 	(3) provide funds for provider improvement grants and quality achievement grants;
10.10 	(4) require participating providers to incorporate the state's early learning standards 
10.11 	in their curriculum activities and develop appropriate child assessments aligned with the 
10.12 	kindergarten readiness assessment;
10.13 	(5) provide accountability for the NorthStar Quality Improvement and Rating 
10.14 	System's effectiveness in improving child outcomes and kindergarten readiness; and
10.15 	(6) align current and new state investments to improve the quality of child care 
10.16 	with the NorthStar Quality Improvement and Rating System framework, by providing 
10.17 	accountability and informed parent choice.
10.18 	The Minnesota Early Learning Foundation shall report back to the legislature by 
10.19 	January 15, 2008, on the progress being made under this paragraph.
10.20 	(d) This section expires June 30, 2011. If no state appropriation is made for purposes 
10.21 	of this section, the commissioner must not implement paragraphs (a) and (b).

10.22 	Sec. 10. Minnesota Statutes 2004, section 124D.518, subdivision 4, is amended to read:
10.23 		Subd. 4.First prior program year. "First prior program year" means the period 
10.24 	from May 1 of the second prior fiscal year through April 30 of the first prior fiscal year
10.25 	specific time period defined by the commissioner that aligns to a program academic year.

10.26 	Sec. 11. Minnesota Statutes 2004, section 124D.52, subdivision 1, is amended to read:
10.27 		Subdivision 1.Program requirements. (a) An adult basic education program is a 
10.28 	day or evening program offered by a district that is for people over 16 years of age who do 
10.29 	not attend an elementary or secondary school. The program offers academic instruction 
10.30 	necessary to earn a high school diploma or equivalency certificate.
10.31 	(b) Notwithstanding any law to the contrary, a school board or the governing body of 
10.32 	a consortium offering an adult basic education program may adopt a sliding fee schedule 
10.33 	based on a family's income, but must waive the fee for participants who are under the 
10.34 	age of 21 or unable to pay. The fees charged must be designed to enable individuals of 
11.1 	all socioeconomic levels to participate in the program. A program may charge a security 
11.2 	deposit to assure return of materials, supplies, and equipment.
11.3 	(c) Each approved adult basic education program must develop a memorandum of 
11.4 	understanding with the local workforce development centers located in the approved 
11.5 	program's service delivery area. The memorandum of understanding must describe how 
11.6 	the adult basic education program and the workforce development centers will cooperate 
11.7 	and coordinate services to provide unduplicated, efficient, and effective services to clients.
11.8 	(d) Adult basic education aid must be spent for adult basic education purposes as 
11.9 	specified in sections  124D.518 to  124D.531. 
11.10 	(e) A state-approved adult basic education program must count and submit student 
11.11 	contact hours for a program that offers high school credit toward an adult high school 
11.12 	diploma according to student eligibility requirements and competency demonstration 
11.13 	requirements established by the commissioner.

11.14 	Sec. 12. Minnesota Statutes 2005 Supplement, section 124D.531, subdivision 1, 
11.15 	is amended to read:
11.16 		Subdivision 1.State total adult basic education aid. (a) The state total adult basic 
11.17 	education aid for fiscal year 2005 is $36,509,000. The state total adult basic education aid 
11.18 	for fiscal year 2006 and later is $36,509,000 equals $36,587,000 plus any amount that is 
11.19 	not paid for during the previous fiscal year, as a result of adjustments under subdivision 4, 
11.20 	paragraph (a), or section 124D.52, subdivision 3. The state total adult basic education 
11.21 	aid for fiscal year 2007 equals $37,673,000 plus any amount that is not paid for during 
11.22 	the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or 
11.23 	section 124D.52, subdivision 3. The state total adult basic education aid for later fiscal 
11.24 	years equals:
11.25 	(1) the state total adult basic education aid for the preceding fiscal year plus any 
11.26 	amount that is not paid for during the previous fiscal year, as a result of adjustments under 
11.27 	subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
11.28 	(2) the lesser of:
11.29 	(i) 1.03; or
11.30 	(ii) the greater of 1.00 or the ratio of the state total contact hours in the first prior 
11.31 	program year to the state total contact hours in the second prior program year.
11.32 	Beginning in fiscal year 2002, two percent of the state total adult basic education 
11.33 	aid must be set aside for adult basic education supplemental service grants under section 
11.34 	124D.522.
12.1 	(b) The state total adult basic education aid, excluding basic population aid, equals 
12.2 	the difference between the amount computed in paragraph (a), and the state total basic 
12.3 	population aid under subdivision 2.

12.4 	Sec. 13. Minnesota Statutes 2004, section 125A.27, subdivision 7, is amended to read:
12.5 		Subd. 7.Early intervention system. "Early intervention system" means the total 
12.6 	effort in the state to meet the needs of eligible children and their families, including, 
12.7 	but not limited to:.
12.8 	(1) any public agency in the state that receives funds under the Individuals with 
12.9 	Disabilities Education Act, United States Code, title 20, sections 1471 to 1485 (Part 
12.10 	C, Public Law 102-119);
12.11 	(2) other state and local agencies administering programs involved in the provision 
12.12 	of early intervention services, including, but not limited to:
12.13 	(i) the Maternal and Child Health program under title V of the Social Security Act, 
12.14 	United States Code, title 42, sections 701 to 709;
12.15 	(ii) the Individuals with Disabilities Education Act, United States Code, title 20, 
12.16 	sections 1411 to 1420 (Part B);
12.17 	(iii) medical assistance under the Social Security Act, United States Code, title 
12.18 	42, section 1396 et seq.;
12.19 	(iv) the Developmental Disabilities Assistance and Bill of Rights Act, United States 
12.20 	Code, title 42, sections 6021 to 6030 (Part B); and
12.21 	(v) the Head Start Act, United States Code, title 42, sections 9831 to 9852; and
12.22 	(3) services provided by private groups or third-party payers in conformity with an 
12.23 	individualized family service plan.

12.24 	Sec. 14. Minnesota Statutes 2004, section 125A.27, subdivision 8, is amended to read:
12.25 		Subd. 8.Eligibility for Part C. "Eligibility for Part C" means eligibility for early 
12.26 	childhood special education under section  125A.02 and Minnesota Rules, part 3525.2335, 
12.27 	subpart 1, items A and B. 

12.28 	Sec. 15. Minnesota Statutes 2004, section 125A.27, subdivision 11, is amended to read:
12.29 		Subd. 11.Interagency child find systems. "Interagency child find systems" 
12.30 	means activities developed on an interagency basis with the involvement of interagency 
12.31 	early intervention committees and other relevant community groups using rigorous 
12.32 	standards  to actively seek out, identify, and refer infants and young children,  with, or at 
12.33 	risk of, disabilities, and their families, including a child under the age of three who: (1) 
13.1 	is involved in a substantiated case of abuse or neglect, or (2) is identified as affected by 
13.2 	illegal substance abuse, or withdrawal symptoms resulting from prenatal drug exposure, to 
13.3 	reduce the need for future services.

13.4 	Sec. 16. Minnesota Statutes 2004, section 125A.27, subdivision 15, is amended to read:
13.5 		Subd. 15.Part C state plan. "Part C state plan" means the annual state plan 
13.6 	application approved by the federal government under the Individuals with Disabilities 
13.7 	Education Act, United States Code, title 20, section 1471 et seq. (Part C, Public Law 
13.8 	105-117).

13.9 	Sec. 17. Minnesota Statutes 2004, section 125A.27, subdivision 18, is amended to read:
13.10 		Subd. 18.State lead agency. "State lead agency" means the state agency receiving 
13.11 	federal funds under the Individuals with Disabilities Education Act, United States Code, 
13.12 	title 20, section 1471 et seq. (Part H, Public Law 102-119) for the purposes of providing 
13.13 	early intervention services.

13.14 	Sec. 18. Minnesota Statutes 2005 Supplement, section 125A.28, is amended to read:
13.15 	125A.28 STATE INTERAGENCY COORDINATING COUNCIL.
13.16 	An Interagency Coordinating Council of at least 17, but not more than 25 members 
13.17 	is established, in compliance with Public Law 102-119 108-446, section 682 641. The 
13.18 	members must be appointed by the governor. Council members must elect the council 
13.19 	chair. The representative of the commissioner may not serve as the chair. The council 
13.20 	must be composed of at least five parents, including persons of color, of children with 
13.21 	disabilities under age 12, including at least three parents of a child with a disability 
13.22 	under age seven, five representatives of public or private providers of services for 
13.23 	children with disabilities under age five, including a special education director, county 
13.24 	social service director, local Head Start director, and a community health services or 
13.25 	public health nursing administrator, one member of the senate, one member of the 
13.26 	house of representatives, one representative of teacher preparation programs in early 
13.27 	childhood-special education or other preparation programs in early childhood intervention, 
13.28 	at least one representative of advocacy organizations for children with disabilities under 
13.29 	age five, one physician who cares for young children with special health care needs, one 
13.30 	representative each from the commissioners of commerce, education, health, human 
13.31 	services, a representative from the state agency responsible for child care, foster care, 
13.32 	mental health, homeless coordinator of education of homeless children and youth, and a 
14.1 	representative from Indian health services or a tribal council. Section 15.059, subdivisions 
14.2 	2 to 5, apply to the council. The council must meet at least quarterly.
14.3 	The council must address methods of implementing the state policy of developing 
14.4 	and implementing comprehensive, coordinated, multidisciplinary interagency programs of 
14.5 	early intervention services for children with disabilities and their families.
14.6 	The duties of the council include recommending policies to ensure a comprehensive 
14.7 	and coordinated system of all state and local agency services for children under age five 
14.8 	with disabilities and their families. The policies must address how to incorporate each 
14.9 	agency's services into a unified state and local system of multidisciplinary assessment 
14.10 	practices, individual intervention plans, comprehensive systems to find children in need of 
14.11 	services, methods to improve public awareness, and assistance in determining the role of 
14.12 	interagency early intervention committees.
14.13 	On the date that Minnesota Part C Annual Performance Report is submitted to the 
14.14 	federal Office of Special Education, the council must recommend to the governor and the 
14.15 	commissioners of education, health, human services, commerce, and employment and 
14.16 	economic development policies for a comprehensive and coordinated system.
14.17 	Notwithstanding any other law to the contrary, the State Interagency Coordinating 
14.18 	Council expires on June 30, 2009.

14.19 	Sec. 19. Minnesota Statutes 2004, section 125A.29, is amended to read:
14.20 	125A.29 RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL 
14.21 	BOARDS.
14.22 	(a) It is the joint responsibility of county boards and school boards to coordinate, 
14.23 	provide, and pay for appropriate services, and to facilitate payment for services from public 
14.24 	and private sources. Appropriate services for children eligible under section  125A.02 must 
14.25 	be determined in consultation with parents, physicians, and other educational, medical, 
14.26 	health, and human services providers. The services provided must be in conformity with:
14.27 	(1)  an IFSP for each eligible infant and toddler from birth through age two and its
14.28 	the infant's or toddler's  family, including:
14.29 	(i) American Indian infants and toddlers with disabilities and their families residing 
14.30 	on a reservation geographically located in the state;
14.31 	(ii) infants and toddlers with disabilities who are homeless children and their 
14.32 	families; and
14.33 	(iii) infants and toddlers with disabilities who are wards of the state;  or 
14.34 	(2) an individual education plan (IEP) or individual service plan (ISP) for each 
14.35 	eligible child ages three through four. 
15.1 	(b) Appropriate services include family education and counseling, home visits, 
15.2 	occupational and physical therapy, speech pathology, audiology, psychological services, 
15.3 	special instruction, nursing, respite, nutrition, assistive technology, transportation 
15.4 	and related costs, social work, vision services, case management including service 
15.5 	coordination under section  125A.33, medical services for diagnostic and evaluation 
15.6 	purposes, early identification, and screening, assessment, and health services necessary to 
15.7 	enable children with disabilities to benefit from early intervention services. 
15.8 	(c) School and county boards shall coordinate early intervention services. In the 
15.9 	absence of agreements established according to section  125A.39, service responsibilities 
15.10 	for children birth through age two are as follows: 
15.11 	(1) school boards must provide, pay for, and facilitate payment for special education 
15.12 	and related services required under sections  125A.05 and  125A.06; 
15.13 	(2) county boards must provide, pay for, and facilitate payment for noneducational 
15.14 	services of social work, psychology, transportation and related costs, nursing, respite, and 
15.15 	nutrition services not required under clause (1).
15.16 	(d) School and county boards may develop an interagency agreement according 
15.17 	to section  125A.39 to establish agency responsibility that assures early intervention 
15.18 	services are coordinated, provided, paid for, and that payment is facilitated from public 
15.19 	and private sources. 
15.20 	(e) County and school boards must jointly determine the primary agency in this 
15.21 	cooperative effort and must notify the commissioner of the state lead agency of their 
15.22 	decision.

15.23 	Sec. 20. Minnesota Statutes 2004, section 125A.30, is amended to read:
15.24 	125A.30 INTERAGENCY EARLY INTERVENTION COMMITTEES.
15.25 	(a) A school district, group of districts, or special education cooperative, in 
15.26 	cooperation with the health and human service agencies located in the county or counties 
15.27 	in which the district or cooperative is located, must establish an Interagency Early 
15.28 	Intervention Committee for children with disabilities under age five and their families 
15.29 	under this section, and for children with disabilities ages three to 22 consistent with 
15.30 	the requirements under sections  125A.023 and  125A.027. Committees must include 
15.31 	representatives of local health, education, and county human service agencies, county 
15.32 	boards, school boards, early childhood family education programs, Head Start, parents of 
15.33 	young children with disabilities under age 12, child care resource and referral agencies, 
15.34 	school readiness programs, current service providers, and may also include representatives 
16.1 	from other private or public agencies and school nurses. The committee must elect a chair 
16.2 	from among its members and must meet at least quarterly. 
16.3 	(b) The committee must develop and implement interagency policies and procedures 
16.4 	concerning the following ongoing duties:
16.5 	(1) develop public awareness systems designed to inform potential recipient 
16.6 	families, especially parents with premature infants, or infants with other physical risk 
16.7 	factors associated with learning or development complications,  of available programs 
16.8 	and services;
16.9 	(2) to reduce families' need for future services, and especially parents with premature 
16.10 	infants, or infants with other physical risk factors associated with learning or development 
16.11 	complications, implement interagency child find systems designed to actively seek out, 
16.12 	identify, and refer infants and young children with, or at risk of, disabilities and their 
16.13 	families, including a child under the age of three who: (i) is involved in a substantiated 
16.14 	case of abuse or neglect or (ii) is identified as affected by illegal substance abuse, or 
16.15 	withdrawal symptoms resulting from prenatal drug exposure;
16.16 	(3) establish and evaluate the identification, referral, child and family assessment 
16.17 	systems, procedural safeguard process, and community learning systems to recommend, 
16.18 	where necessary, alterations and improvements;
16.19 	(4) assure the development of individualized family service plans for all eligible 
16.20 	infants and toddlers with disabilities from birth through age two, and their families, and 
16.21 	individual education plans and individual service plans when necessary to appropriately 
16.22 	serve children with disabilities, age three and older, and their families and recommend 
16.23 	assignment of financial responsibilities to the appropriate agencies;
16.24 	(5) encourage agencies to develop individual family service plans for children with 
16.25 	disabilities, age three and older;
16.26 	(6) implement a process for assuring that services involve cooperating agencies at all 
16.27 	steps leading to individualized programs;
16.28 	(7) (6) facilitate the development of a transitional plan if a service provider is not 
16.29 	recommended to continue to provide services;
16.30 	(8) (7) identify the current services and funding being provided within the 
16.31 	community for children with disabilities under age five and their families;
16.32 	(9) (8) develop a plan for the allocation and expenditure of additional state and 
16.33 	federal early intervention funds under United States Code, title 20, section 1471 et seq. 
16.34 	(Part C, Public Law 102-119 108-446) and United States Code, title 20, section 631, et 
16.35 	seq. (Chapter I, Public Law 89-313); and
17.1 	(10) (9) develop a policy that is consistent with section  13.05, subdivision 9, and 
17.2 	federal law to enable a member of an interagency early intervention committee to allow 
17.3 	another member access to data classified as not public. 
17.4 	(c) The local committee shall also:
17.5 	(1) participate in needs assessments and program planning activities conducted by 
17.6 	local social service, health and education agencies for young children with disabilities and 
17.7 	their families; and
17.8 	(2) review and comment on the early intervention section of the total special 
17.9 	education system for the district, the county social service plan, the section or sections of 
17.10 	the community health services plan that address needs of and service activities targeted 
17.11 	to children with special health care needs, the section on children with special needs in 
17.12 	the county child care fund plan, sections in Head Start plans on coordinated planning and 
17.13 	services for children with special needs, any relevant portions of early childhood education 
17.14 	plans, such as early childhood family education or school readiness, or other applicable 
17.15 	coordinated school and community plans for early childhood programs and services, and 
17.16 	the section of the maternal and child health special project grants that address needs of and 
17.17 	service activities targeted to children with chronic illness and disabilities.

17.18 	Sec. 21. Minnesota Statutes 2004, section 125A.32, is amended to read:
17.19 	125A.32 INDIVIDUALIZED FAMILY SERVICE PLAN (IFSP).
17.20 	(a) A team must participate in IFSP meetings to develop the IFSP. The team shall 
17.21 	include:
17.22 	(1) a parent or parents of the child;
17.23 	(2) other family members, as requested by the parent, if feasible to do so;
17.24 	(3) an advocate or person outside of the family, if the parent requests that the 
17.25 	person participate;
17.26 	(4) the service coordinator who has been working with the family since the 
17.27 	initial referral, or who has been designated by the public agency to be responsible for 
17.28 	implementation of the IFSP and coordination with other agencies including transition 
17.29 	services; and
17.30 	(5) a person or persons involved in conducting evaluations and assessments.
17.31 	(b) The IFSP must include:
17.32 	(1) information about the child's developmental status;
17.33 	(2) family information, with the consent of the family;
18.1 	(3) measurable results or major outcomes expected to be achieved by the child 
18.2 	and the family with the family's assistance, that include developmentally appropriate 
18.3 	preliteracy and language skills for the child, and the criteria, procedures, and timelines;
18.4 	(4) specific early intervention services based on peer-reviewed research, to the 
18.5 	extent practicable, necessary to meet the unique needs of the child and the family to 
18.6 	achieve the outcomes;
18.7 	(5) payment arrangements, if any;
18.8 	(6) medical and other services that the child needs, but that are not required under 
18.9 	the Individual with Disabilities Education Act, United States Code, title 20, section 1471 
18.10 	et seq. (Part C, Public Law 102-119 108-446) including funding sources to be used in 
18.11 	paying for those services and the steps that will be taken to secure those services through 
18.12 	public or private sources;
18.13 	(7) dates and duration of early intervention services;
18.14 	(8) name of the service coordinator;
18.15 	(9) steps to be taken to support a child's transition from early intervention services to 
18.16 	other appropriate services, including convening a transition conference at least 90 days or, 
18.17 	at the discretion of all parties, not more than nine months before the child is eligible for 
18.18 	preschool services; and
18.19 	(10) signature of the parent and authorized signatures of the agencies responsible 
18.20 	for providing, paying for, or facilitating payment, or any combination of these, for early 
18.21 	intervention services.

18.22 	Sec. 22. Minnesota Statutes 2004, section 125A.33, is amended to read:
18.23 	125A.33 SERVICE COORDINATION.
18.24 	(a) The team developing the IFSP under section  125A.32 must select a service 
18.25 	coordinator to carry out service coordination activities on an interagency basis. Service 
18.26 	coordination must actively promote a family's capacity and competency to identify, 
18.27 	obtain, coordinate, monitor, and evaluate resources and services to meet the family's 
18.28 	needs. Service coordination activities include: 
18.29 	(1) coordinating the performance of evaluations and assessments;
18.30 	(2) facilitating and participating in the development, review, and evaluation of 
18.31 	individualized family service plans;
18.32 	(3) assisting families in identifying available service providers;
18.33 	(4) coordinating and monitoring the delivery of available services;
18.34 	(5) informing families of the availability of advocacy services;
18.35 	(6) coordinating with medical, health, and other service providers;
19.1 	(7) facilitating the development of a transition plan at least 90 days before the time 
19.2 	the child is no longer eligible for early intervention services or,  at the discretion of all 
19.3 	parties, not more than nine months prior to the child's eligibility for preschool services, 
19.4 	if appropriate;
19.5 	(8) managing the early intervention record and submitting additional information to 
19.6 	the local primary agency at the time of periodic review and annual evaluations; and
19.7 	(9) notifying a local primary agency when disputes between agencies impact service 
19.8 	delivery required by an IFSP.
19.9 	(b) A service coordinator must be knowledgeable about children and families 
19.10 	receiving services under this section, requirements of state and federal law, and services 
19.11 	available in the interagency early childhood intervention system.

19.12 	Sec. 23. Minnesota Statutes 2004, section 125A.48, is amended to read:
19.13 	125A.48 STATE INTERAGENCY AGREEMENT.
19.14 	(a) The commissioners of the Departments of Education, Health, and Human 
19.15 	Services must enter into an agreement to implement this section and Part H C, Public 
19.16 	Law 102-119 108-446, and as required by Code of Federal Regulations, title 34, section  
19.17 	303.523, to promote the development and implementation of interagency, coordinated, 
19.18 	multidisciplinary state and local early childhood intervention service systems for serving 
19.19 	eligible young children with disabilities, birth through age two, and their families and 
19.20 	to ensure the meaningful involvement of underserved groups, including children with 
19.21 	disabilities from minority, low-income, homeless, and rural families, and children with 
19.22 	disabilities who are wards of the state. The agreement must be reviewed annually. 
19.23 	(b) The state interagency agreement must outline at a minimum the conditions, 
19.24 	procedures, purposes, and responsibilities of the participating state and local agencies 
19.25 	for the following:
19.26 	(1) membership, roles, and responsibilities of a state interagency committee for 
19.27 	the oversight of priorities and budget allocations under Part H C, Public Law 102-119
19.28 	108-446, and other state allocations for this program;
19.29 	(2) child find;
19.30 	(3) establishment of local interagency agreements;
19.31 	(4) review by a state interagency committee of the allocation of additional state and 
19.32 	federal early intervention funds by local agencies;
19.33 	(5) fiscal responsibilities of the state and local agencies;
19.34 	(6) intraagency and interagency dispute resolution;
19.35 	(7) payor of last resort;
20.1 	(8) maintenance of effort;
20.2 	(9) procedural safeguards, including mediation;
20.3 	(10) complaint resolution;
20.4 	(11) quality assurance;
20.5 	(12) data collection;
20.6 	(13) an annual summary to the state Interagency Coordinating Council regarding 
20.7 	conflict resolution activities including disputes, due process hearings, and complaints; and
20.8 	(14) other components of the state and local early intervention system consistent 
20.9 	with Public Law 102-119 108-446.
20.10 	Written materials must be developed for parents, IEIC's, and local service providers 
20.11 	that describe procedures developed under this section as required by Code of Federal 
20.12 	Regulations, title 34, section 303.

20.13 	Sec. 24. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
20.14 	3, is amended to read:
20.15 	
20.16 	Subd. 3.  Early childhood family education aid. For early  childhood family 
20.17 	education aid under Minnesota Statutes, section  124D.135:  

20.18			14,356,000
			
20.19		$
	15,105,000
	.......
	2006
	
20.20			15,137,000
			
20.21		$
	17,792,000
	.......
	2007
	
20.22 	
20.23 	The 2006 appropriation includes $1,861,000 $1,859,000 for 2005 and  $12,495,000
20.24 	$13,246,000 for 2006.  
20.25 	
20.26 	The 2007 appropriation includes $2,327,000 $1,471,000 for 2006 and  $12,810,000
20.27 	$16,321,000 for 2007.  
20.28 	

20.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

20.30 	Sec. 25. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
20.31 	4, is amended to read:
20.32 	
21.1 	Subd. 4.  Health and developmental screening aid. For  health and developmental 
21.2 	screening aid under Minnesota Statutes,  sections 121A.17 and 121A.19:  

21.3			3,076,000
			
21.4		$
	3,000,000
	.......
	2006
	
21.5			3,511,000
			
21.6		$
	2,997,000
	.......
	2007
	
21.7 	
21.8 	The 2006 appropriation includes $417,000 for 2005 and  $2,659,000 $2,583,000 
21.9 	 for 2006.  
21.10 	
21.11 	The 2007 appropriation includes $494,000 $287,000 for 2006 and  $3,017,000
21.12 	$2,710,000 for 2007.  
21.13 	

21.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

21.15 	Sec. 26. ADULT LITERACY GRANTS FOR RECENT IMMIGRANTS TO 
21.16 	MINNESOTA.
 21.17 		Subdivision 1.Establishment. An adult literacy grant program for recent 
21.18 	immigrants to Minnesota is established in fiscal years 2007 and 2008 only in order to 
21.19 	meet the English language needs of the unanticipated refugees and immigrants to the 
21.20 	state of Minnesota.
21.21 		Subd. 2.Grants. The commissioner of education shall consult adult basic 
21.22 	education service providers in establishing the form and manner of the grant program. 
21.23 	The commissioner shall award grants to organizations providing adult literacy services in 
21.24 	order to help offset the additional costs due to unanticipated high enrollments of recent 
21.25 	refugees and immigrants.

21.26 	Sec. 27. LEGISLATIVE COMMISSION TO END POVERTY IN MINNESOTA 
21.27 	BY 2020.
 21.28 		Subdivision 1.Membership. The Legislative Commission to End Poverty in 
21.29 	Minnesota by 2020 consists of nine members of the senate appointed by the Subcommittee 
21.30 	on Committees of the Committee on Rules and Administration, including four members of 
21.31 	the minority, and nine members of the house of representatives appointed by the speaker, 
21.32 	including four members of the minority. Appointments must be made by members elected 
22.1 	to the 85th session of the legislature and no later than February 15, 2007. The governor 
22.2 	may appoint two nonvoting members to sit with the commission.
22.3 		Subd. 2.Guiding principles. In preparing recommendations on how to end poverty 
22.4 	in Minnesota by 2020, the commission must be guided by the following principles:
22.5 	(a) There should be a consistent and persistent approach that includes participation 
22.6 	of people of faith, nonprofit agencies, government, and business.
22.7 	(b) All people should be provided with those things that protect human dignity 
22.8 	and make for a healthy life, including adequate food and shelter, meaningful work, safe 
22.9 	communities, health care, and education.
22.10 	(c) All people are intended to live well together as a whole community, seeking the 
22.11 	common good, avoiding wide disparities between those who have too little to live on and 
22.12 	those who have a disproportionate share of the nation's goods.
22.13 	(d) All people need to work together to overcome poverty, and this work transcends 
22.14 	both any particular political theory or party and any particular economic theory or 
22.15 	structure. Overcoming poverty requires the use of private and public resources.
22.16 	(e) Alliances are needed between the faith community, nonprofit agencies, 
22.17 	government, business, and others with a commitment to overcoming poverty.
22.18 	(f) Overcoming poverty involves both acts of direct service to alleviate the outcomes 
22.19 	of poverty and advocacy to change those structures that result in people living in poverty.
22.20 	(g) Government is neither solely responsible for alleviating poverty nor removed 
22.21 	from that responsibility. Government is the vehicle by which people order their lives 
22.22 	based on their shared vision. Society is well served when people bring their values into 
22.23 	the public arena. This convergence around issues of poverty and the common good 
22.24 	leads people of varying traditions to call on government to make a critical commitment 
22.25 	to overcoming poverty.
22.26 		Subd. 3.Report. The commission shall report its recommendations on how to end 
22.27 	poverty in Minnesota by 2020 to the legislature by December 15, 2008.
22.28 		Subd. 4.Expiration. The commission expires December 31, 2008.

22.29 	Sec. 28. APPROPRIATIONS.
 22.30 		Subdivision 1.Department of Education. The sums indicated in this section are 
22.31 	appropriated from the general fund to the Department of Education, unless otherwise 
22.32 	specified, for the fiscal years designated.
22.33 		Subd. 2.Educate parents partnership. For the educate parents partnership under 
22.34 	Minnesota Statutes, section 124D.129:

22.35		$
	80,000
	.....
	2007
	
23.1 	The base for this program in fiscal year 2008 and later is $50,000.
23.2 		Subd. 3.Kindergarten entrance assessment initiative and intervention 
23.3 	program. For the kindergarten entrance assessment initiative and intervention program 
23.4 	under Minnesota Statutes, section 124D.162:

23.5		$
	287,000
	.....
	2007
	
23.6 		Subd. 4.Early childhood Part C. For the expansion of early childhood Part C 
23.7 	services:

23.8		$
	400,000 
	.....
	2007
	
23.9 		Subd. 5. Adult literacy grants for recent immigrants. For adult literacy grants for 
23.10 	recent immigrants to Minnesota under section 26:

23.11		$
	1,250,000
	.....
	2007
	
23.12 	The base for this program is $1,250,000 in fiscal year 2008 and $0 in fiscal year 2009.
23.13 		Subd. 6.NorthStar Quality Improvement and Rating System.  For a grant to the 
23.14 	Minnesota Early Learning Foundation for the NorthStar Quality Improvement and Rating 
23.15 	System under Minnesota Statutes, section 124D.175, paragraph (c):

23.16		$
	1,000,000
	.....
	2007
	
23.17 	This appropriation must be used to implement phase one of the NorthStar Quality 
23.18 	Improvement and Rating System including start-up costs, participation of 200 providers, 
23.19 	parent information, and materials and evaluation by the Minnesota Early Learning 
23.20 	Foundation in consultation with the University of Minnesota.
23.21 	This onetime appropriation is available to June 30, 2008.
23.22 		Subd. 7.Legislative Commission to End Poverty by 2020. To the Legislative 
23.23 	Coordinating Commission for the Legislative Commission to End Poverty by 2020 under 
23.24 	section 27:

23.25		$
	250,000
	.....
	2007

23.26 	ARTICLE 3
23.27 	GENERAL EDUCATION

23.28 	Section 1. Laws 2005, First Special Session chapter 5, article 1, section 47, is amended 
23.29 	to read:
23.30 	Sec. 47.  ALTERNATIVE TEACHER COMPENSATION REVENUE  
23.31 	GUARANTEE.
24.1 	Notwithstanding Minnesota Statutes, sections 122A.415,  subdivision 1, and 
24.2 	126C.10, subdivision 34, paragraphs (a) and  (b), a school district that received alternative 
24.3 	teacher  compensation aid for fiscal year 2005, but does not qualify for  alternative 
24.4 	teacher compensation revenue for all sites in the  district for fiscal year 2006 or, 2007, 
24.5 	2008, or 2009, shall receive additional  basic alternative teacher compensation aid for 
24.6 	that fiscal year  equal to the lesser of the amount of alternative teacher  compensation 
24.7 	aid it received for fiscal year 2005 or the amount  it would have received for that fiscal 
24.8 	year under Minnesota  Statutes 2004, section 122A.415, subdivision 1, for teachers at  
24.9 	sites not qualifying for alternative teacher compensation  revenue for that fiscal year, if 
24.10 	the district submits a timely  application and the commissioner determines that the district  
24.11 	continues to implement an alternative teacher compensation  system, consistent with its 
24.12 	application under Minnesota Statutes  2004, section 122A.415, for fiscal year 2005.  The 
24.13 	additional  basic alternative teacher compensation aid under this section  must not be used 
24.14 	in calculating the alternative teacher  compensation levy under Minnesota Statutes, section 
24.15 	126C.10,  subdivision 35.  This section applies only to fiscal years 2006  and 2007 through 
24.16 	2009 and does not apply to later fiscal years.  

24.17 	Sec. 2. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 2, 
24.18 	is amended to read:
24.19 	Subd. 2.  General education aid. For general education  aid under Minnesota 
24.20 	Statutes, section 126C.13, subdivision 4:  

24.21
24.22		$
	5,136,578,000
5,819,153,000
	.....
	2006
	
24.23
24.24		$
	5,390,196,000
5,472,238,000
	.....
	2007
	
24.25 	The 2006 appropriation includes $784,978,000 $787,978,000 for 2005 and  
24.26 	$4,351,600,000 $5,031,175,000 for 2006.  
24.27 	The 2007 appropriation includes $817,588,000 $513,848,000 for 2006 and  
24.28 	$4,572,608,000 $4,958,390,000 for 2007.

24.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

24.30 	Sec. 3. ONETIME ENERGY ASSISTANCE AID.
 24.31 	(a) For fiscal year 2006 only, a school district or charter school's onetime energy 
24.32 	assistance aid is equal to $3.67 times its adjusted marginal cost pupil units. A school 
25.1 	district or charter school may use its onetime energy assistance aid to pay for heating, fuel, 
25.2 	and other energy costs.
25.3 	(b) This aid is paid entirely in fiscal year 2006 based on estimated data. By January 
25.4 	31, 2007, the Department of Education shall recalculate the aid for each district or charter 
25.5 	school using actual data, and adjust the general education aid paid to school districts or 
25.6 	charter schools for fiscal year 2007 by the amount of the difference between the estimated 
25.7 	aid and the actual aid.

25.8 	Sec. 4. APPROPRIATION.
 25.9 		Subdivision 1.Department of Education. The sum indicated in this section is 
25.10 	appropriated from the general fund to the Department of Education for the fiscal year 
25.11 	designated.
25.12 		Subd. 2.Onetime energy assistance aid. For onetime energy assistance aid under 
25.13 	section 3:

25.14		$
	3,495,000
	.....
	2007

25.15 	ARTICLE 4
25.16 	EDUCATION EXCELLENCE

25.17 	Section 1. [120B.132] RAISED ACADEMIC ACHIEVEMENT; ADVANCED 
25.18 	PLACEMENT PROGRAMS.
25.19 		Subdivision 1.Establishment; eligibility. A program is established to raise 
25.20 	kindergarten through grade 12 academic achievement through increased student 
25.21 	participation in preadvanced placement and advanced placement programs. Schools and 
25.22 	charter schools eligible to participate under this section: 
25.23 	(1) must have a three-year plan approved by the local school board to create a new or 
25.24 	expand an existing program to implement the college board advanced placement courses 
25.25 	and exams or preadvanced placement courses; and 
25.26 	(2) must propose to further raise students' academic achievement by: 
25.27 	(i) increasing the availability of and all students' access to advanced placement; 
25.28 	(ii) expanding the breadth of advanced placement courses or programs that are 
25.29 	available to students; 
25.30 	(iii) increasing the number and the diversity of the students who participate in 
25.31 	advanced placement courses or programs and succeed; 
26.1 	(iv) providing low-income and other disadvantaged students with increased access 
26.2 	to advanced placement courses and programs; or 
26.3 	(v) increasing the number of high school students, including low-income and other 
26.4 	disadvantaged students, who receive college credit by successfully completing advanced 
26.5 	placement courses or programs and achieving satisfactory scores on related exams.
26.6 		Subd. 2.Application and review process; funding priority. (a) Charter schools 
26.7 	and school districts in which eligible schools under subdivision 1 are located may 
26.8 	apply to the commissioner, in the form and manner the commissioner determines, for 
26.9 	competitive funding to further raise students' academic achievement. The application 
26.10 	must detail the specific efforts the applicant intends to undertake in further raising 
26.11 	students' academic achievement, consistent with subdivision 1, and a proposed budget 
26.12 	detailing the district or charter school's current and proposed expenditures for advanced 
26.13 	placement or preadvanced placement courses and programs. The proposed budget must 
26.14 	demonstrate that the applicant's efforts will supplement but not supplant any expenditures 
26.15 	for advanced placement and preadvanced placement courses and programs the applicant 
26.16 	currently makes available to students. Expenditures for administration must not exceed 
26.17 	five percent of the proposed budget. The commissioner may require an applicant to 
26.18 	provide additional information.
26.19 	(b) When reviewing applications, the commissioner must determine whether 
26.20 	the applicant satisfied all the requirements in this subdivision and subdivision 1. 
26.21 	The commissioner may give funding priority to an otherwise qualified applicant that 
26.22 	demonstrates:
26.23 	(1) a focus on developing or expanding advanced placement courses and programs 
26.24 	or increasing students' participation in, access to, or success with the courses or programs, 
26.25 	including the participation, access, or success of low-income and other disadvantaged 
26.26 	students;
26.27 	(2) a compelling need for access to advanced placement programs;
26.28 	(3) an effective ability to actively involve local business and community 
26.29 	organizations in student activities that are integral to advanced placement courses and 
26.30 	programs; 
26.31 	(4) access to additional public or nonpublic funds or in-kind contributions that are 
26.32 	available for advanced placement programs; or
26.33 	(5) an intent to implement activities that target low-income and other disadvantaged 
26.34 	students.
26.35 		Subd. 3.Funding; permissible funding uses. (a) The commissioner shall award 
26.36 	grants to applicant school districts and charter schools that meet the requirements of 
27.1 	subdivisions 1 and 2. The commissioner must award grants on an equitable geographical 
27.2 	basis to the extent feasible and consistent with this section. Grant awards must not exceed 
27.3 	the lesser of:
27.4 	(1) $85 times the number of pupils enrolled at the participating sites on October 
27.5 	1 of the previous fiscal year; or
27.6 	(2) the approved supplemental expenditures based on the budget submitted under 
27.7 	subdivision 2. For charter schools in their first year of operation, the maximum grant 
27.8 	award must be calculated using the number of pupils enrolled on October 1 of the current 
27.9 	fiscal year. The commissioner may adjust the maximum grant award computed using prior 
27.10 	year data for changes in enrollment attributable to school closings, school openings, 
27.11 	grade level reconfigurations, or school district reorganizations between the prior fiscal 
27.12 	year and the current fiscal year.
27.13 	(b) School districts and charter schools that submit an application and receive 
27.14 	funding under this section must use the funding, consistent with the application, to:
27.15 	(1) provide teacher training and instruction to more effectively serve students, 
27.16 	including low-income and other disadvantaged students, who participate in preadvanced 
27.17 	and advanced placement programs;
27.18 	(2) further develop advanced placement courses or programs;
27.19 	(3) improve the transition between grade levels to better prepare students, including 
27.20 	low-income and other disadvantaged students, for succeeding in advanced placement 
27.21 	programs;
27.22 	(4) purchase books and supplies;
27.23 	(5) pay course or program fees;
27.24 	(6) increase students' participation in and success with advanced placement 
27.25 	programs;
27.26 	(7) expand students' access to preadvanced placement or advanced placement 
27.27 	courses or programs through online learning;
27.28 	(8) hire appropriately licensed personnel to teach additional advanced placement 
27.29 	programs; or
27.30 	(9) engage in other activity directly related to expanding students' access to, 
27.31 	participation in, and success with preadvanced placement or advanced placement courses 
27.32 	and programs, including low-income and other disadvantaged students.
27.33 		Subd. 4.Annual reports. (a) Each school district and charter school that receives 
27.34 	a grant under this section annually must collect demographic and other student data to 
27.35 	demonstrate and measure the extent to which the district or charter school raised students' 
27.36 	academic achievement under this program and must report the data to the commissioner 
28.1 	in the form and manner the commissioner determines. The commissioner annually by 
28.2 	February 15 must make summary data about this program available to the education 
28.3 	policy and finance committees of the legislature.
28.4 	(b) Each school district and charter school that receives a grant under this section 
28.5 	annually must report to the commissioner, consistent with the Uniform Financial 
28.6 	Accounting and Reporting Standards, its actual expenditures for advanced placement and 
28.7 	preadvanced placement programs. The report must demonstrate that the school district or 
28.8 	charter school has maintained its effort from other sources for advanced placement and 
28.9 	preadvanced placement programs compared with the previous fiscal year, and the district 
28.10 	or charter school has expended all grant funds, consistent with its approved budget.

28.11 	EFFECTIVE DATE. This section is effective the day following final enactment 
28.12 	and applies to the 2006-2007 school year.

28.13 	Sec. 2. [122A.416] ALTERNATIVE TEACHER COMPENSATION REVENUE 
28.14 	FOR PERPICH CENTER FOR ARTS EDUCATION AND MULTIDISTRICT 
28.15 	INTEGRATION COLLABORATIVES.
28.16 	Notwithstanding sections 122A.413, 122A.414, 122A.415, and 126C.10, 
28.17 	multidistrict integration collaboratives and the Perpich Center for Arts Education are 
28.18 	eligible to receive alternative teacher compensation revenue as if they were intermediate 
28.19 	school districts. To qualify for alternative teacher compensation revenue, a multidistrict 
28.20 	integration collaborative or the Perpich Center for Arts Education must meet all of the 
28.21 	requirements of sections 122A.413, 122A.414, and 122A.415 that apply to intermediate 
28.22 	school districts, must report its enrollment as of October 1 of each year to the department, 
28.23 	and must annually report its expenditures for the alternative teacher professional pay 
28.24 	system consistent with the uniform financial accounting and reporting standards to the 
28.25 	department by November 30 of each year.

28.26 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2007.

28.27 	Sec. 3. Minnesota Statutes 2004, section 181.101, is amended to read:
28.28 	181.101 WAGES; HOW OFTEN PAID.
28.29 	Every employer must pay all wages earned by an employee at least once every 31 
28.30 	days on a regular pay day designated in advance by the employer regardless of whether 
28.31 	the employee requests payment at longer intervals. Unless paid earlier, the wages earned 
28.32 	during the first half of the first 31-day pay period become due on the first regular payday 
28.33 	following the first day of work. If wages earned are not paid, the commissioner of labor 
29.1 	and industry or the commissioner's representative may demand payment on behalf of an 
29.2 	employee. If payment is not made within ten days of demand, the commissioner may 
29.3 	charge and collect the wages earned and a penalty in the amount of the employee's average 
29.4 	daily earnings at the rate agreed upon in the contract of employment, not exceeding 15 
29.5 	days in all, for each day beyond the ten-day limit following the demand. Money collected 
29.6 	by the commissioner must be paid to the employee concerned. This section does not 
29.7 	prevent an employee from prosecuting a claim for wages. This section does not prevent 
29.8 	a school district or,  other public school entity, or other school, as defined under section 
29.9 	120A.22,  from paying any wages earned by its employees during a school year on regular 
29.10 	pay days in the manner provided by an applicable contract or collective bargaining 
29.11 	agreement, or a personnel policy adopted by the governing board. For purposes of this 
29.12 	section, "employee" includes a person who performs agricultural labor as defined in 
29.13 	section  181.85, subdivision 2. For purposes of this section, wages are earned on the 
29.14 	day an employee works. 

29.15 	Sec. 4. CHINESE LANGUAGE PROGRAMS; CURRICULUM 
29.16 	DEVELOPMENT PROJECT.
 29.17 		Subdivision 1.Project parameters. (a) Notwithstanding other law to the contrary, 
29.18 	the commissioner of education may contract with the Board of Regents of the University 
29.19 	of Minnesota or other Minnesota public entity the commissioner determines is qualified 
29.20 	to undertake the development of an articulated K-12 Chinese curriculum for Minnesota 
29.21 	schools that involves:
29.22 	(1) creating a network of Chinese teachers and educators able to develop new and 
29.23 	modify or expand existing world languages K-12 curricula, materials, assessments, and 
29.24 	best practices needed to provide Chinese language instruction to students; and
29.25 	(2) coordinating statewide efforts to develop and expand Chinese language 
29.26 	instruction so that it is uniformly available to students throughout the state, and making 
29.27 	innovative use of media and technology, including television, distance learning, and online 
29.28 	courses to broaden students' access to the instruction.
29.29 	(b) The entity with which the commissioner contracts under paragraph (a) must have 
29.30 	sufficient knowledge and expertise to ensure the professional development of appropriate, 
29.31 	high-quality curricula, supplementary materials, aligned assessments, and best practices 
29.32 	that accommodate different levels of student ability and types of programs.
29.33 	(c) Project participants must:
29.34 	(1) work throughout the project to develop curriculum, supplementary materials, 
29.35 	aligned assessments, and best practices; and
30.1 	(2) make curriculum, supplementary materials, aligned assessments, and best 
30.2 	practices equitably available to Minnesota schools and students.
30.3 		Subd. 2.Project participants. The entity with which the commissioner contracts 
30.4 	must work with the network of Chinese teachers and educators to:
30.5 	(1) conduct an inventory of Chinese language curricula, supplementary materials, 
30.6 	and professional development initiatives currently used in Minnesota or other states;
30.7 	(2) develop Chinese language curricula and benchmarks aligned to local world 
30.8 	language standards and classroom-based assessments; and
30.9 	(3) review and recommend to the commissioner how best to build an educational 
30.10 	infrastructure to provide more students with Chinese language instruction, including 
30.11 	how to develop and provide: (i) an adequate supply of Chinese language teachers; (ii) 
30.12 	an adequate number of high-quality school programs; (iii) appropriate curriculum, 
30.13 	instructional materials, and aligned assessments that include technology-based delivery 
30.14 	systems; (iv) teacher preparation programs to train Chinese language teachers; (v) 
30.15 	expedited licensing of Chinese language teachers; (vi) best practices in existing 
30.16 	educational programs that can be used to establish K-12 Chinese language programs; 
30.17 	and (vii) technical assistance resources.

30.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

30.19 	Sec. 5. NORTHWESTERN ONLINE COLLEGE IN THE HIGH SCHOOL 
30.20 	PROGRAM.
 30.21 	For fiscal year 2007 only, the Northwestern Online College in the High School 
30.22 	program is eligible for $50,000 for professional development and to develop Web-based 
30.23 	technology.

30.24 	Sec. 6. CHARACTER DEVELOPMENT EDUCATION REVENUE; PILOT 
30.25 	PROGRAM.
 30.26 		Subdivision 1.Pilot program created. A pilot program is created to allow school 
30.27 	districts to receive character development education revenue to purchase curriculum for 
30.28 	the purposes of Minnesota Statutes, section 120B.232. Character development education 
30.29 	revenue for school districts equals $30 times the district's adjusted marginal cost pupil 
30.30 	units.
30.31 		Subd. 2.Approved provider list. The commissioner of education shall maintain 
30.32 	a character development education curriculum approved provider list. The character 
30.33 	development education curriculum of approved providers shall be research based with 
30.34 	at least one completed relational study covering a period of no fewer than five years 
31.1 	and completed by an independent party. Approved character development education 
31.2 	curriculum must include:
31.3 	(1) age appropriate character development for the classroom in all elementary and 
31.4 	secondary grades;
31.5 	(2) curriculum for character development extracurricular activities; 
31.6 	(3) teacher training workshops and in-service training; 
31.7 	(4) plans for school assemblies promoting character development; 
31.8 	(5) midyear consulting between the school district and the provider; and
31.9 	(6) an assessment program.
31.10 		Subd. 3.Application and selection process. A school district may submit to 
31.11 	the commissioner an application for funding in the form and manner specified by the 
31.12 	commissioner. The commissioner shall approve applications that propose to use an 
31.13 	approved provider and that agree to use the program as recommended by the provider. 
31.14 	The commissioner must approve or disapprove an application within 30 days of receipt on 
31.15 	a first-come, first-served basis.

31.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

31.17 	Sec. 7. APPROPRIATIONS.
 31.18 		Subdivision 1.Department of Education. The sums indicated in this section are 
31.19 	appropriated from the general fund to the Department of Education for the fiscal years 
31.20 	designated.
31.21 		Subd. 2.Northwestern Online College in the High School program. For 
31.22 	Northwestern Online College in the High School program under section 5:

31.23		$
	50,000
	.....
	2007
	
31.24 	This is a onetime appropriation.
31.25 		Subd. 3.Chinese language. For the Chinese language curriculum project under 
31.26 	section 4:

31.27		$
	250,000
	.....
	2007
	
31.28 	The commissioner must report to the house of representatives and senate committees 
31.29 	having jurisdiction over kindergarten through grade 12 education policy and finance on 
31.30 	the range of the program by February 15, 2007. The report shall address the applicability 
31.31 	of the Chinese language curriculum project to other world languages and include the 
32.1 	availability of instructors, curriculum, high-quality school programs, assessments, and 
32.2 	best practices as they apply to world languages.
32.3 	This is a onetime appropriation.
32.4 		Subd. 4.Advanced placement increased student participation. For the increased 
32.5 	participation of students in advanced placement programs under Minnesota Statutes, 
32.6 	section 120B.132:

32.7		$
	1,000,000
	.....
	2007
	
32.8 	This is a onetime appropriation.
32.9 		Subd. 5.Character development education revenue. For the character 
32.10 	development education revenue pilot program under section 6:

32.11		$
	1,500,000
	.....
	2007
	
32.12 	This is a onetime appropriation.
32.13 		Subd. 6.Scholars of distinction. For the scholars of distinction program:

32.14		$
	25,000
	.....
	2007
	
32.15 	This is a onetime appropriation.
32.16 		Subd. 7.TIMMS Study. For the department to contract with Boston College 
32.17 	for Minnesota 4th and 8th grade students to participate in the TIMMS International 
32.18 	assessment of student achievement in mathematics and science: 

32.19		$
	500,000
	.....
	2007
	
32.20 	School districts must apply to participate in the study on a form and in the manner 
32.21 	prescribed by the commissioner. The commissioner may select districts to participate if 
32.22 	more districts than those applying are needed for the study. The provisions of Minnesota 
32.23 	Statutes, chapter 16C, as they relate to competitive bidding, do not apply to this contract.
32.24 	The Department of Education must receive at least $150,000 in private sector gifts 
32.25 	or bequests to support the TIMMS study by July 1, 2006. If the Department of Education 
32.26 	does not receive $150,000 in private gifts or bequests by July 1, 2006, the amount 
32.27 	appropriated in this subdivision shall immediately cancel.
32.28 	This is a onetime appropriation.

32.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

33.1 	ARTICLE 5
33.2 	FACILITIES, ACCOUNTING, AND TECHNOLOGY

33.3 	Section 1. Minnesota Statutes 2004, section 123B.57, subdivision 6, is amended to read:
33.4 		Subd. 6.Uses of health and safety revenue. (a) Health and safety revenue may 
33.5 	be used only for approved expenditures necessary to correct fire and life safety hazards, 
33.6 	or for the removal or encapsulation of asbestos from school buildings or property 
33.7 	owned or being acquired by the district, asbestos-related repairs, cleanup and disposal 
33.8 	of polychlorinated biphenyls found in school buildings or property owned or being 
33.9 	acquired by the district, or the cleanup, removal, disposal, and repairs related to storing 
33.10 	heating fuel or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, 
33.11 	as defined in section  296A.01, Minnesota occupational safety and health administration 
33.12 	regulated facility and equipment hazards, indoor air quality mold abatement, upgrades 
33.13 	or replacement of mechanical ventilation systems to meet American Society of Heating, 
33.14 	Refrigerating and Air Conditioning Engineers standards and State Mechanical Code, 
33.15 	Department of Health Food Code and swimming pool hazards excluding depth correction, 
33.16 	and health, safety, and environmental management. Testing and calibration activities are 
33.17 	permitted for existing mechanical ventilation systems at intervals no less than every five 
33.18 	years. Health and safety revenue must not be used to finance a lease purchase agreement, 
33.19 	installment purchase agreement, or other deferred payments agreement. Health and safety 
33.20 	revenue must not be used for the construction of new facilities or the purchase of portable 
33.21 	classrooms, for interest or other financing expenses, or for energy efficiency projects 
33.22 	under section  123B.65. The revenue may not be used for a building or property or part 
33.23 	of a building or property used for postsecondary instruction or administration or for a 
33.24 	purpose unrelated to elementary and secondary education. 
33.25 	(b) Notwithstanding paragraph (a), health and safety revenue must not be used for 
33.26 	replacement of building materials or facilities including roof, walls, windows, internal 
33.27 	fixtures and flooring, nonhealth and safety costs associated with demolition of facilities, 
33.28 	structural repair or replacement of facilities due to unsafe conditions, violence prevention 
33.29 	and facility security, ergonomics, building and heating, ventilating and air conditioning 
33.30 	supplies, maintenance, and cleaning, testing, and calibration activities. All assessments, 
33.31 	investigations, inventories, and support equipment not leading to the engineering or 
33.32 	construction of a project shall be included in the health, safety, and environmental 
33.33 	management costs in subdivision 8, paragraph (a).

33.34	 

34.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008 
34.2 	and later.

34.3 	Sec. 2. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 3, 
34.4 	is amended to read:
34.5 	Subd. 3. Debt service equalization. For debt service aid  according to Minnesota 
34.6 	Statutes, section 123B.53, subdivision 6:  

34.7
34.8		$
	25,654,000
27,206,000
	.....
	2006
	
34.934.10
		$
	24,134,000
18,410,000
	.....
	2007
	
34.11 	The 2006 appropriation includes $4,654,000 for 2005 and  $21,000,000$22,552,000
34.12 	for 2006.  
34.13 	The 2007 appropriation includes $3,911,000 $2,504,000 for 2006 and  $20,223,000
34.14 	$15,906,000 for 2007.  

34.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

34.16 	Sec. 3. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 6, 
34.17 	is amended to read:
34.18 	Subd. 6. Emergency aid, Red Lake. For Independent School  District No. 38, Red 
34.19 	Lake, for onetime emergency aid to repair  infrastructure damage to the Red Lake High 
34.20 	School as a result of  the March 21, 2005, school shooting: 

34.21			50,000
			
34.22		$
	524,000
	.....
	2006
	
34.23 	The school district must submit proposed expenditures for  these funds for review 
34.24 	and comment approval under Minnesota  Statutes, section 123B.71 actual expenditure 
34.25 	information to support this appropriation to the Department of Education, before the 
34.26 	commissioner releases the  funds to the district. The district must report the amount of  its 
34.27 	unreimbursed costs to the commissioner.

34.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

34.29 	Sec. 4. APPROPRIATION; WASECA LEVY.
 35.1 	Independent School District No. 829, Waseca, may levy up to $344,000 beginning 
35.2 	in 2006 over five years for health and safety revenue lost due to miscalculation. $316,000 
35.3 	is appropriated in fiscal year 2007 to the commissioner of education for payment of the aid 
35.4 	portion of lost revenue. If the district does not levy the full amount authorized within the 
35.5 	five-year period, other state aid due to the district shall be reduced proportionately. This is 
35.6 	a onetime appropriation for fiscal year 2007.

35.7 	Sec. 5. APPROPRIATION; ROCORI SCHOOL DISTRICT.
 35.8 	$137,000 is appropriated in fiscal year 2007 from the general fund to the 
35.9 	commissioner of education for a grant to Independent School District No. 750, Rocori. 
35.10 	The grant is for a continuation of district activities that were developed in concert with 
35.11 	the district's federal School Emergency Response to Violence, or Project SERV, grant. 
35.12 	The grant may be used to continue the district's recovery efforts, and uses include: an 
35.13 	academic program and impact of tragedy or program assessment of educational adequacy; 
35.14 	an organizational analysis; a strategic planning overview; a district assessment survey; 
35.15 	continued recovery support; staff development initiatives; and any other activities 
35.16 	developed in response to the federal Project SERV grant.
35.17 	The base budget for this program for fiscal year 2008 only is $53,000.

35.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

35.19 	Sec. 6. FUND TRANSFERS.
 35.20 		Subdivision 1.A.C.G.C. Notwithstanding Minnesota Statutes, sections 123B.79, 
35.21 	123B.80, and 475.61, subdivision 4, Independent School District No. 2396, A.C.G.C., on 
35.22 	June 30, 2006, may permanently transfer up to $203,000 from its reserved account for 
35.23 	disabled accessibility to its unrestricted general fund without making a levy reduction.
35.24 		Subd. 2.Alden-Conger. Notwithstanding Minnesota Statutes, sections 123B.79 and 
35.25 	123B.80, as of June 30, 2006, Independent School District No. 242, Alden-Conger, may 
35.26 	permanently transfer up to $127,000 from its reserved for disabled accessibility account to 
35.27 	its unrestricted general fund account without making a levy reduction.
35.28 		Subd. 3.Fosston. Notwithstanding Minnesota Statutes, sections 123B.79 and 
35.29 	123B.80, as of June 30, 2006, Independent School District No. 601, Fosston, may 
35.30 	permanently transfer up to $80,000 from its reserved for disabled accessibility account to 
35.31 	its unrestricted general fund account without making a levy reduction.
35.32 		Subd. 4.Hopkins. Notwithstanding Minnesota Statutes, section 123B.79 or 
35.33 	123B.80, on June 30, 2006, Independent School District No. 270, Hopkins, may 
35.34 	permanently transfer up to $300,000 from its community education reserve fund balance 
36.1 	to its undesignated general fund balance to assist the district in decreasing its statutory 
36.2 	operating debt.
36.3 		Subd. 5.Lester Prairie. Notwithstanding Minnesota Statutes, sections 123B.79 
36.4 	or 123B.80, on June 30, 2006, Independent School District No. 424, Lester Prairie, may 
36.5 	permanently transfer up to $150,000 from its reserved for operating capital account and up 
36.6 	to $107,000 from its reserved for severance account, to its undesignated balance in the 
36.7 	general fund.
36.8 		Subd. 6.Milroy. Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, 
36.9 	on June 30, 2006, Independent School District No. 635, Milroy, may permanently transfer 
36.10 	up to $26,000 from its reserved for disability accessibility account to its undesignated 
36.11 	general fund balance without making a levy reduction. 
36.12 		Subd. 7.Northland Community Schools. Notwithstanding Minnesota Statutes, 
36.13 	section 123B.79 or 123B.80, on or before June 30, 2006, Independent School District No. 
36.14 	118, Northland Community Schools, may permanently transfer up to $197,000 from its 
36.15 	reserved for disabled accessibility account to its reserved for operating capital account in 
36.16 	its general fund without making a levy reduction.
36.17 		Subd. 8.Tyler. Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, 
36.18 	Independent School District No. 409, Tyler, on June 30, 2006, may, based on the approval 
36.19 	of the commissioner of education, permanently transfer up to $451,000 from its reserved 
36.20 	for capital operating account to its debt redemption fund. The commissioner of education 
36.21 	must only allow this fund transfer if it is in the best interest of the Russell-Tyler-Ruthton 
36.22 	school district consolidation.

36.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

36.24 	Sec. 7. HEALTH AND SAFETY REVENUE USES; BELLE PLAINE.
 36.25 	Notwithstanding Minnesota Statutes, sections 123B.57 and 123B.59, upon approval 
36.26 	of the commissioner of education, Independent School District No. 716, Belle Plaine, may 
36.27 	use up to $125,000 of its health and safety revenue raised through an alternative facilities 
36.28 	bond for other qualifying health and safety projects.

36.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

36.30 	ARTICLE 6
36.31 	NUTRITION 

36.32 	Section 1. Minnesota Statutes 2005 Supplement, section 124D.111, subdivision 1, 
36.33 	is amended to read:
37.1 		Subdivision 1.School lunch aid computation. Each school year, the state must pay 
37.2 	participants in the national school lunch program the amount of ten 10.5 cents for each full 
37.3 	paid, reduced, and free student lunch served to students.

37.4 	Sec. 2. Laws 2005, First Special Session chapter 5, article 5, section 17, subdivision 2, 
37.5 	is amended to read:
37.6 	Subd. 2.  School lunch. For school lunch aid according to  Minnesota Statutes, 
37.7 	section 124D.111, and Code of Federal  Regulations, title 7, section 210.17:

37.8
37.9		$
	8,998,000
9,760,000
	.....
	2006
	
37.10
37.11		$
	9,076,000
10,391,000
	.....
	2007

37.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

37.13 	ARTICLE 7
37.14 	 EDUCATION FORECAST ADJUSTMENTS
37.15 	A. GENERAL EDUCATION

37.16 	Section 1. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 
37.17 	3, is amended to read:
37.18 	Subd. 3.   Referendum tax base replacement aid. For  referendum tax base 
37.19 	replacement aid under Minnesota Statutes,  section 126C.17, subdivision 7a:

37.20
37.21		$
	8,704,000
9,200,000
	.....
	2006
	
37.22		$
	8,704,000
	.....
	2007
	
37.23 	The 2006 appropriation includes $1,366,000 for 2005 and  $7,338,000 $7,834,000
37.24 	for 2006.  
37.25 	The 2007 appropriation includes $1,366,000 $870,000 for 2006 and  $7,338,000
37.26 	$7,834,000 for 2007.

37.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

37.28 	Sec. 2. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 5, 
37.29 	is amended to read:
38.1 	Subd. 5.  Abatement revenue.  For abatement aid under  Minnesota Statutes, section 
38.2 	127A.49:

38.3
38.4		$
	903,000
909,000
	.....
	2006
	
38.5
38.6		$
	955,000
1,026,000
	.....
	2007
	
38.7 	The 2006 appropriation includes $187,000 for 2005 and  $716,000$722,000 for 2006.  
38.8 	The 2007 appropriation includes $133,000$80,000 for 2006 and  $822,000$946,000 
38.9 	for 2007.

38.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

38.11 	Sec. 3. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 6, 
38.12 	is amended to read:
38.13 	Subd. 6.  Consolidation transition. For districts  consolidating under Minnesota 
38.14 	Statutes, section 123A.485:

38.15
38.16		$
	253,000
527,000
	.....
	2007
	
38.17 	The 2007 appropriation includes $0 for 2006 and $253,000 $527,000 for 2007.  

38.18 	Sec. 4. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 7, 
38.19 	is amended to read:
38.20 	Subd. 7.   Nonpublic pupil education aid. For nonpublic  pupil education aid under 
38.21 	Minnesota Statutes, sections 123B.87  and 123B.40 to 123B.43:

38.22
38.23		$
	15,370,000
15,458,000
	.....
	2006
	
38.24
38.25		$
	16,434,000
15,991,000
	.....
	2007
	
38.26 	The 2006 appropriation includes $2,305,000 $1,864,000 for 2005 and  $13,065,000 
38.27 	$13,594,000 for 2006.
38.28 	The 2007 appropriation includes $2,433,000 $1,510,000 for 2006 and  $14,001,000 
38.29 	$14,481,000 for 2007.

38.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

39.1 	Sec. 5. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 8, 
39.2 	is amended to read:
39.3 	Subd. 8.  Nonpublic pupil transportation. For nonpublic  pupil transportation aid 
39.4 	under Minnesota Statutes, section  123B.92, subdivision 9:

39.5
39.6		$
	21,451,000
21,371,000
	.....
	2006
	
39.7
39.8		$
	23,043,000
20,843,000
	.....
	2007
	
39.9 	The 2006 appropriation includes $3,274,000 for 2005 and  $18,177,000 $18,097,000
39.10 	for 2006.
39.11 	The 2007 appropriation includes $3,385,000$2,010,000 for 2006 and  $19,658,000
39.12 	$18,833,000 for 2007.

39.13 	EFFECTIVE DATE. This section is effective the day following final enactment.
39.14 	B. EDUCATION EXCELLENCE

39.15 	Sec. 6. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 2, 
39.16 	is amended to read:
39.17 	Subd. 2.   Charter school building lease aid. For building  lease aid under Minnesota 
39.18 	Statutes, section 124D.11, subdivision  4:  

39.19
39.20		$
	25,465,000
25,331,000
	.....
	2006
	
39.21
39.22		$
	30,929,000
27,806,000
	.....
	2007
	
39.23 	The 2006 appropriation includes $3,324,000$3,173,000 for 2005 and  $22,141,000
39.24 	$22,158,000 for 2006.  
39.25 	The 2007 appropriation includes $4,123,000$2,462,000 for 2006 and  $26,806,000
39.26 	$25,344,000 for 2007.  

39.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

39.28 	Sec. 7. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 3, 
39.29 	is amended to read:
39.30 	Subd. 3.  Charter school startup aid. For charter school  startup cost aid under 
39.31 	Minnesota Statutes, section 124D.11:  

40.1
40.2		$
	1,393,000
1,291,000
	.....
	2006
	
40.3
40.4		$
	3,185,000
2,347,000
	.....
	2007
	
40.5 	The 2006 appropriation includes $0 for 2005 and $1,393,000 $1,291,000 for 2006.  
40.6 	The 2007 appropriation includes $259,000$143,000 for 2006 and  $2,926,000
40.7 	$2,204,000 for 2007.  

40.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

40.9 	Sec. 8. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 4, 
40.10 	is amended to read:
40.11 	Subd. 4.   Integration aid. For integration aid under  Minnesota Statutes, section 
40.12 	124D.86, subdivision 5:  

40.13
40.14		$
	57,801,000
59,404,000
	.....
	2006
	
40.15
40.16		$
	57,536,000
58,405,000
	.....
	2007
	
40.17 	The 2006 appropriation includes $8,545,000 for 2005 and  $49,256,000$50,859,000 
40.18 	for 2006.  
40.19 	The 2007 appropriation includes $9,173,000$5,650,000 for 2006 and  $48,363,000
40.20 	$52,755,000 for 2007.  

40.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

40.22 	Sec. 9. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 6, 
40.23 	is amended to read:
40.24 	Subd. 6.   Interdistrict desegregation or integration transportation grants. For 
40.25 	interdistrict desegregation or  integration transportation grants under Minnesota Statutes,  
40.26 	section 124D.87:  

40.27
40.28		$
	7,768,000
6,032,000
	.....
	2006
	
40.29
40.30		$
	9,908,000
10,134,000
	.....
	2007

41.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

41.2 	Sec. 10. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 
41.3 	7, is amended to read:
41.4 	Subd. 7.   Success for the future. For American Indian  success for the future grants 
41.5 	under Minnesota Statutes, section  124D.81:  

41.6
41.7		$
	2,137,000
2,240,000
	.....
	2006
	
41.8		$
	2,137,000
	.....
	2007
	
41.9 	The 2006 appropriation includes $335,000$316,000 for 2005 and  $1,802,000
41.10 	$1,924,000 for 2006.  
41.11 	The 2007 appropriation includes $335,000$213,000 for 2006 and  $1,802,000
41.12 	$1,924,000 for 2007.  

41.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

41.14 	Sec. 11. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 
41.15 	10, is amended to read:
41.16 	Subd. 10.  Tribal contract schools. For tribal contract  school aid under Minnesota 
41.17 	Statutes, section 124D.83:  

41.18
41.19		$
	2,389,000
2,338,000
	.....
	2006
	
41.20
41.21		$
	2,603,000
2,357,000
	.....
	2007
	
41.22 	The 2006 appropriation includes $348,000 for 2005 and  $2,041,000$1,990,000
41.23 	for 2006.  
41.24 	The 2007 appropriation includes $380,000$221,000 for 2006 and  $2,223,000
41.25 	$2,136,000 for 2007.  

41.26 	EFFECTIVE DATE. This section is effective the day following final enactment.
41.27 	C. SPECIAL PROGRAMS

41.28 	Sec. 12. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
41.29 	2, is amended to read:
42.1 	Subd. 2.   Special education; regular. For special  education aid under Minnesota 
42.2 	Statutes, section 125A.75:  

42.3
42.4		$
	528,846,000
559,485,000
	.....
	2006
	
42.5
42.6		$
	527,446,000
528,106,000
	.....
	2007
	
42.7 	The 2006 appropriation includes $83,078,000 for 2005 and  $445,768,000
42.8 	$476,407,000 for 2006.  
42.9 	The 2007 appropriation includes $83,019,000$52,934,000 for 2006 and  
42.10 	$444,427,000$475,172,000 for 2007.  

42.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

42.12 	Sec. 13. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
42.13 	3, is amended to read:
42.14 	Subd. 3.  Aid for children with disabilities. For aid  under Minnesota Statutes, 
42.15 	section 125A.75, subdivision 3, for  children with disabilities placed in residential facilities  
42.16 	within the district boundaries for whom no district of residence  can be determined:  

42.17
42.18		$
	2,212,000
1,527,000
	.....
	2006
	
42.19
42.20		$
	2,615,000
1,624,000
	.....
	2007
	
42.21 	If the appropriation for either year is insufficient, the  appropriation for the other 
42.22 	year is available.  

42.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

42.24 	Sec. 14. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
42.25 	4, is amended to read:
42.26 	Subd. 4.  Travel for home-based services. For aid for  teacher travel for home-based 
42.27 	services under Minnesota Statutes,  section 125A.75, subdivision 1:  

42.28
42.29		$
	187,000
198,000
	.....
	2006
	
42.30		$
	195,000
	.....
	2007
	
43.1 	The 2006 appropriation includes $28,000 for 2005 and  $159,000$170,000 for 2006.  
43.2 	The 2007 appropriation includes $29,000$18,000 for 2006 and  $166,000$177,000
43.3 	for 2007.  

43.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

43.5 	Sec. 15. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
43.6 	5, is amended to read:
43.7 	Subd. 5.   Special education; excess costs. For excess  cost aid under Minnesota 
43.8 	Statutes, section 125A.79, subdivision  7:  

43.943.10
		$
	102,083,000
106,453,000
	.....
	2006
	
43.11
43.12		$
	104,286,000
104,333,000
	.....
	2007
	
43.13 	The 2006 appropriation includes $37,455,000 for 2005 and  $64,628,000$68,998,000
43.14 	for 2006.  
43.15 	The 2007 appropriation includes $38,972,000$34,602,000 for 2006 and  $65,314,000
43.16 	$69,731,000 for 2007.  

43.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

43.18 	Sec. 16. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
43.19 	6, is amended to read:
43.20 	Subd. 6. Transition for disabled students. For aid for  transition programs for 
43.21 	children with disabilities under  Minnesota Statutes, section 124D.454:  

43.22
43.23		$
	8,788,000
9,300,000
	.....
	2006
	
43.24
43.25		$
	8,765,000
8,781,000
	.....
	2007
	
43.26 	The 2006 appropriation includes $1,380,000 for 2005 and  $7,408,000$7,920,000
43.27 	for 2006.  
43.28 	The 2007 appropriation includes $1,379,000$880,000 for 2006 and  $7,386,000
43.29 	$7,901,000 for 2007.  

43.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

44.1 	Sec. 17. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
44.2 	7, is amended to read:
44.3 	Subd. 7.  Court-placed special education revenue. For  reimbursing serving 
44.4 	school districts for unreimbursed eligible  expenditures attributable to children placed in 
44.5 	the serving  school district by court action under Minnesota Statutes,  section 125A.79, 
44.6 	subdivision 4:  

44.7
44.8		$
	65,000
46,000
	.....
	2006
	
44.9		$
	70,000
	.....
	2007

44.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

44.11 	Sec. 18. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 
44.12 	2, is amended to read:
44.13 	Subd. 2.  Health and safety revenue. For health and  safety aid according to 
44.14 	Minnesota Statutes, section 123B.57,  subdivision 5:  

44.15
44.16		$
	802,000
823,000
	.....
	2006
	
44.17
44.18		$
	578,000
352,000
	.....
	2007
	
44.19 	The 2006 appropriation includes $211,000 for 2005 and  $591,000$612,000 for 2006.  
44.20 	The 2007 appropriation includes $109,000$68,000 for 2006 and  $469,000$284,000
44.21 	for 2007.  

44.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

44.23 	Sec. 19. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 
44.24 	4, is amended to read:
44.25 	Subd. 4.  Alternative facilities bonding aid. For  alternative facilities bonding aid, 
44.26 	according to Minnesota  Statutes, section 123B.59, subdivision 1:  

44.27
44.28		$
	19,287,000
20,387,000
	.....
	2006
	
44.29		$
	19,287,000
	.....
	2007
	
45.1 	The 2006 appropriation includes $3,028,000 for 2005 and  $16,259,000$17,359,000
45.2 	for 2006.  
45.3 	The 2007 appropriation includes $3,028,000$1,928,000 for 2006 and  $16,259,000
45.4 	$17,359,000 for 2007.  

45.5 	EFFECTIVE DATE. This section is effective the day following final enactment.
45.6 	D. NUTRITION 

45.7 	Sec. 20. Laws 2005, First Special Session chapter 5, article 5, section 17, subdivision 
45.8 	3, is amended to read:
45.9 	Subd. 3. Traditional school breakfast; kindergarten  milk. For traditional school 
45.10 	breakfast aid and kindergarten  milk under Minnesota Statutes, sections 124D.1158 and 
45.11 	124D.118:  

45.12
45.13		$
	4,878,000
4,856,000
	.....
	2006
	
45.14
45.15		$
	4,968,000
5,044,000
	.....
	2007

45.16 	EFFECTIVE DATE. This section is effective the day following final enactment.
45.17 	E. LIBRARIES

45.18 	Sec. 21. Laws 2005, First Special Session chapter 5, article 6, section 1, subdivision 2, 
45.19 	is amended to read:
45.20 		Subd. 2.Basic system support. For basic system support grants under Minnesota 
45.21 	Statutes, section 134.355:

45.22
45.23		$
	8,570,000
9,058,000
	.....
	2006
	
45.24		$
	8,570,000
	.....
	2007
	
45.25 	The 2006 appropriation includes $1,345,000 for 2005 and $7,225,000 $7,713,000
45.26 	for 2006.
45.27 	The 2007 appropriation includes $1,345,000 $857,000 for 2006 and $7,225,000
45.28 	$7,713,000 for 2007.

45.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

46.1 	Sec. 22. Laws 2005, First Special Session chapter 5, article 6, section 1, subdivision 3, 
46.2 	is amended to read:
46.3 	Subd. 3.   Multicounty, multitype library systems. For  grants under Minnesota 
46.4 	Statutes, sections 134.353 and 134.354,  to multicounty, multitype library systems:  

46.5
46.6		$
	903,000
954,000
	.....
	2006
	
46.7		$
	903,000
	.....
	2007
	
46.8 	The 2006 appropriation includes $141,000 for 2005 and  $762,000$813,000 for 2006.  
46.9 	The 2007 appropriation includes $141,000$90,000 for 2006 and  $762,000$813,000
46.10 	for 2007.  

46.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

46.12 	Sec. 23. Laws 2005, First Special Session chapter 5, article 6, section 1, subdivision 5, 
46.13 	is amended to read:
46.14 	Subd. 5.  Regional library telecommunications aid. For  regional library 
46.15 	telecommunications aid under Minnesota  Statutes, section 134.355:  

46.16
46.17		$
	1,200,000
1,268,000
	.....
	2006
	
46.18		$
	1,200,000
	.....
	2007
	
46.19 	The 2006 appropriation includes $188,000 for 2005 and  $1,012,000$1,080,000
46.20 	for 2006.  
46.21 	The 2007 appropriation includes $188,000$120,000 for 2006 and  $1,012,000
46.22 	$1,080,000 for 2007.  

46.23 	EFFECTIVE DATE. This section is effective the day following final enactment.
46.24 	F. EARLY CHILDHOOD EDUCATION

46.25 	Sec. 24. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
46.26 	2, is amended to read:
46.27 	Subd. 2.  School readiness. For revenue for school  readiness programs under 
46.28 	Minnesota Statutes, sections 124D.15  and 124D.16:  

47.1
47.2		$
	9,020,000
9,528,000
	.....
	2006
	
47.3
47.4		$
	9,042,000
9,020,000
	.....
	2007
	
47.5 	The 2006 appropriation includes $1,417,000$1,415,000 for 2005 and  $7,603,000
47.6 	$8,113,000 for 2006.  
47.7 	The 2007 appropriation includes $1,415,000$901,000 for 2006 and  $7,627,000
47.8 	$8,119,000 for 2007.  

47.9 	EFFECTIVE DATE. This section is effective the day following final enactment.
47.10 	G. PREVENTION

47.11 	Sec. 25. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 2, 
47.12 	is amended to read:
47.13 	Subd. 2.  Community education aid. For community  education aid under 
47.14 	Minnesota Statutes, section 124D.20:  

47.15
47.16		$
	1,918,000
2,043,000
	.....
	2006
	
47.17
47.18		$
	1,837,000
1,949,000
	.....
	2007
	
47.19 	The 2006 appropriation includes $390,000$385,000 for 2005 and  $1,528,000
47.20 	$1,658,000 for 2006.  
47.21 	The 2007 appropriation includes $284,000$184,000 for 2006 and  $1,553,000
47.22 	$1,765,000 for 2007.

47.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

47.24 	Sec. 26. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 3, 
47.25 	is amended to read:
47.26 	Subd. 3.  Adults with disabilities program aid. For  adults with disabilities 
47.27 	programs under Minnesota Statutes,  section 124D.56:  

47.28
47.29		$
	710,000
750,000
	.....
	2006
	
47.30		$
	710,000
	.....
	2007
	
48.1 	The 2006 appropriation includes $111,000 for 2005 and  $599,000$639,000 for 2006.  
48.2 	The 2007 appropriation includes $111,000$71,000 for 2006 and  $599,000$639,000
48.3 	for 2007.  

48.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

48.5 	Sec. 27. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 5, 
48.6 	is amended to read:
48.7 	Subd. 5. School-age care revenue. For extended day aid  under Minnesota Statutes, 
48.8 	section 124D.22:  

48.9		$
	17,000
	.....
	2006
	
48.10			7,000
			
48.11		$
	4,000
	.......
	2007
	
48.12 	The 2006 appropriation includes $4,000 for 2005 and $13,000  for 2006.  
48.13 	The 2007 appropriation includes $2,000$1,000 for 2006 and $5,000$3,000 for 2007.  
48.14 	

48.15 	ARTICLE 8
48.16 	HIGHER EDUCATION

48.17 	Section 1. HIGHER EDUCATION APPROPRIATIONS.
 48.18 	The sum shown in the column marked "APPROPRIATION" is added to the 
48.19 	appropriations in Laws 2005, chapter 107, article 1, or other law to the agency and for the 
48.20 	purposes specified in this article.  The appropriation is from the general fund or another 
48.21 	named fund and is available for the fiscal year indicated for the purpose. The figure "2007" 
48.22 	used in this article means that the addition to the appropriation listed under it is available 
48.23 	for the fiscal year ending June 30, 2007.

48.24				APPROPRIATION
	
48.25				Available for the Year
	
48.26				Ending June 30, 2007

48.27	Sec. 2. BOARD OF REGENTS
 			$
	5,000,000
	
48.28 	To the Board of Regents of the University 
48.29 	of Minnesota for the purposes of section 
48.30 	8. This appropriation is for academic 
49.1 	programs supporting the University of 
49.2 	Minnesota - Rochester, including faculty, 
49.3 	staff, and program planning and development 
49.4 	in the areas of biomedical technologies, 
49.5 	engineering, and computer technologies, 
49.6 	health care administration, and allied health 
49.7 	programs; ongoing operations of industrial 
49.8 	liaison activities; and operation of leased 
49.9 	facilities. The funding base for activities 
49.10 	related to section 8 is $5,000,000 for fiscal 
49.11 	year 2008 and $6,330,000 for fiscal year 
49.12 	2009.

49.13 	Sec. 3. Minnesota Statutes 2004, section 136A.101, subdivision 8, is amended to read:
49.14 		Subd. 8.Resident student. "Resident student" means a student who meets one of 
49.15 	the following conditions:
49.16 	(1) a student who has resided in Minnesota for purposes other than postsecondary 
49.17 	education for at least 12 months without being enrolled at a postsecondary educational 
49.18 	institution for more than five credits in any term;
49.19 	(2) a dependent student whose parent or legal guardian resides in Minnesota at the 
49.20 	time the student applies;
49.21 	(3) a student who graduated from a Minnesota high school, if the student was a 
49.22 	resident of Minnesota during the student's period of attendance at the Minnesota high 
49.23 	school and the student is physically attending a Minnesota postsecondary educational 
49.24 	institution; or
49.25 	(4) a student who, after residing in the state for a minimum of one year, earned a 
49.26 	high school equivalency certificate in Minnesota.;
49.27 	(5) a member, spouse, or dependent of a member of the armed forces of the United 
49.28 	States stationed in Minnesota on active federal military service as defined in section 
49.29 	190.05, subdivision 5c;
49.30 	(6) a person or spouse of a person who relocated to Minnesota from an area that 
49.31 	is declared a presidential disaster area within the preceding 12 months if the disaster 
49.32 	interrupted the person's postsecondary education; or
49.33 	(7) a person defined as a refugee under United States Code, title 8, section 
49.34 	1101(a)(42), who, upon arrival in the United States, moved to Minnesota and has 
49.35 	continued to reside in Minnesota.

50.1 	Sec. 4. Minnesota Statutes 2004, section 136A.15, subdivision 9, is amended to read:
50.2 		Subd. 9.Minnesota resident student. "Minnesota resident student" means a 
50.3 	student who meets one of the following conditions in section  136A.101, subdivision 8.:
50.4 	(1) a student who has resided in Minnesota for purposes other than postsecondary 
50.5 	education for at least 12 months without being enrolled at a postsecondary educational 
50.6 	institution for more than five credits in any term;
50.7 	(2) a dependent student whose parent or legal guardian resides in Minnesota at the 
50.8 	time the student applies;
50.9 	(3) a student who graduated from a Minnesota high school, if the student was a 
50.10 	resident of Minnesota during the student's period of attendance at the Minnesota high 
50.11 	school and the student is physically attending a Minnesota postsecondary educational 
50.12 	institution; or
50.13 	(4) a student who, after residing in the state for a minimum of one year, earned a 
50.14 	high school equivalency certificate in Minnesota.

50.15 	Sec. 5. Minnesota Statutes 2004, section 136A.1701, subdivision 4, is amended to read:
50.16 		Subd. 4.Terms and conditions of loans. (a) The office may loan money upon such 
50.17 	terms and conditions as the office may prescribe. The principal amount of a loan to an 
50.18 	undergraduate student for a single academic year shall not exceed $6,000 for grade levels 
50.19 	1 and 2 effective July 1, 2006, through June 30, 2007. Effective July 1, 2007, the principal 
50.20 	amount of a loan for grade levels 1 and 2 shall not exceed $7,500. The principal amount 
50.21 	of a loan for grade levels 3, 4, and 5 shall not exceed $7,500 effective July 1, 2006. The 
50.22 	aggregate principal amount of all loans made under this section to an undergraduate 
50.23 	student shall not exceed $25,000 $34,500 through June 30, 2007, and $37,500 after June 
50.24 	30, 2007. The principal amount of a loan to a graduate student for a single academic year 
50.25 	shall not exceed $9,000. The aggregate principal amount of all loans made under this 
50.26 	section to a student as a an undergraduate and graduate student shall not exceed $40,000.
50.27 	$52,500 through June 30, 2007, and $55,500 after June 30, 2007. The amount of the loan 
50.28 	may not exceed the cost of attendance less all other financial aid, including PLUS loans or 
50.29 	other similar parent loans borrowed on the student's behalf. The cumulative SELF loan 
50.30 	debt must not exceed the borrowing maximums in paragraph (b).
50.31 	(b) The cumulative undergraduate borrowing maximums for SELF loans are:
50.32 	(1) effective July 1, 2006, through June 30, 2007:
50.33 	(i) grade level 1, $6,000;
50.34 	(ii) grade level 2, $12,000;
50.35 	(iii) grade level 3, $19,500;
51.1 	(iv) grade level 4, $27,000; and
51.2 	(v) grade level 5, $34,500; and
51.3 	(2) effective July 1, 2007:
51.4 	(i) grade level 1, $7,500;
51.5 	(ii) grade level 2, $15,000;
51.6 	(iii) grade level 3, $22,500;
51.7 	(iv) grade level 4, $30,000; and
51.8 	(v) grade level 5, $37,500.

51.9 	Sec. 6. Minnesota Statutes 2004, section 136A.1701, subdivision 7, is amended to read:
51.10 		Subd. 7.Repayment of loans. (a) The office shall establish repayment procedures 
51.11 	for loans made under this section, but in no event shall the period of permitted repayment 
51.12 	for SELF II or SELF III loans exceed ten years from the eligible student's termination of 
51.13 	the student's postsecondary academic or vocational program, or 15 years from the date of 
51.14 	the student's first loan under this section, whichever is less.
51.15 	(b) For SELF loans from phases after SELF III, eligible students with aggregate 
51.16 	principal loan balances from all SELF phases that are less than $18,750 shall have a 
51.17 	repayment period not exceeding ten years from the eligible student's graduation or 
51.18 	termination date. For SELF loans from phases after SELF III, eligible students with 
51.19 	aggregate principal loan balances from all SELF phases of $18,750 or greater shall 
51.20 	have a repayment period not exceeding 15 years from the eligible student's graduation 
51.21 	or termination date. For SELF loans from phases after SELF III, the loans shall enter 
51.22 	repayment no later than seven years after the first disbursement date on the loan.

51.23 	Sec. 7. Minnesota Statutes 2004, section 137.022, subdivision 4, is amended to read:
51.24 		Subd. 4.Mineral research; scholarships. (a) All income credited after July 1, 
51.25 	1992, to the permanent university fund from royalties for mining under state mineral 
51.26 	leases from and after July 1, 1991, must be allocated as provided in this subdivision.
51.27 	(b)(1) Fifty percent of the income, up to $25,000,000 $50,000,000, must be credited 
51.28 	to the mineral research account of the fund to be allocated for the Natural Resources 
51.29 	Research Institute-Duluth and Coleraine facilities, for mineral and mineral-related 
51.30 	research including mineral-related environmental research; and
51.31 	(2) The remainder must be credited to the endowed scholarship account of the fund 
51.32 	for distribution annually for scholastic achievement as provided by the Board of Regents 
51.33 	to undergraduates enrolled at the University of Minnesota who are resident students as 
51.34 	defined in section  136A.101, subdivision 8. 
52.1 	(c) The annual distribution from the endowed scholarship account must be allocated 
52.2 	to the various campuses of the University of Minnesota in proportion to the number of 
52.3 	undergraduate resident students enrolled on each campus.
52.4 	(d) The Board of Regents must report to the education committees of the legislature 
52.5 	biennially at the time of the submission of its budget request on the disbursement of money 
52.6 	from the endowed scholarship account and to the environment and natural resources 
52.7 	committees on the use of the mineral research account.
52.8 	(e) Capital gains and losses and portfolio income of the permanent university fund 
52.9 	must be credited to its three accounts in proportion to the market value of each account.
52.10 	(f) The endowment support from the income and capital gains of the endowed 
52.11 	mineral research and endowed scholarship accounts of the fund must not total more than 
52.12 	six percent per year of the 36-month trailing average market value of the account from 
52.13 	which the support is derived.

52.14 	Sec. 8. Minnesota Statutes 2004, section 137.17, subdivision 1, is amended to read:
52.15 		Subdivision 1.Establish. The Board of Regents may establish a school of 
52.16 	professional and graduate studies as a nonresidential branch campus of the University of 
52.17 	Minnesota, in Rochester, to serve the educational needs of working adults and other 
52.18 	nontraditional students in southeastern Minnesota. The campus shall be a joint partnership 
52.19 	of the University of Minnesota with Rochester Community and Technical College, and 
52.20 	Winona State University. and to foster the economic goals of the region and the state. The 
52.21 	University of Minnesota should expand higher education offerings in Rochester that it is 
52.22 	uniquely qualified to provide. To the extent possible, the Board of Regents should provide 
52.23 	its offerings in partnership with higher education institutions that already serve Rochester 
52.24 	and the southeastern region of Minnesota, and should avoid unnecessary duplicative 
52.25 	offerings of courses and programs, particularly in nursing and allied health programs.
52.26 	The Board of Trustees of the Minnesota State Colleges and Universities shall 
52.27 	cooperate to achieve the foregoing.

52.28 	Sec. 9. Minnesota Statutes 2004, section 137.17, subdivision 3, is amended to read:
52.29 		Subd. 3.Missions. The legislature intends that the mission of the expanded 
52.30 	education offerings in Rochester be congruent with the university's unique core mission of 
52.31 	teaching, research, and outreach in order to support the educational needs and economic 
52.32 	development of this region and the state. The legislature recognizes that the distinctiveness 
52.33 	of each of the partner higher education institutions in Rochester must be maintained to 
52.34 	achieve success in serving the higher education needs of the community and the economic 
53.1 	goals of the state. Further, the legislature intends that the University of Minnesota and the 
53.2 	other partner institutions avoid duplicative offerings of courses and programs. Therefore, 
53.3 	the University of Minnesota, Winona State University, and Rochester Community and 
53.4 	Technical College shall develop jointly a statement of missions, roles, and responsibilities 
53.5 	for the programs and services at Rochester which shall be submitted to the legislature by 
53.6 	January 30, 2000, and any time thereafter that the missions, roles, and responsibilities 
53.7 	change.

53.8 	Sec. 10.  REPEALER.
 53.9 	Minnesota Statutes 2004, section 137.17, subdivisions 2 and 4, are repealed.

53.10 	ARTICLE 9
53.11 	ENVIRONMENT, NATURAL RESOURCES, AND AGRICULTURE

53.12
53.13	Section 1. ENVIRONMENTAL, NATURAL RESOURCES, AND 
AGRICULTURAL APPROPRIATIONS.
 	
53.14 	The sums shown in the columns marked "APPROPRIATIONS" are added to the 
53.15 	appropriations in Laws 2005, First Special Session chapter 1, articles 1 and 2, or other 
53.16 	specified law, to the named agencies and for the specified programs or activities. The sums 
53.17 	shown are appropriated from the general fund, or another named fund, to be available for 
53.18 	the fiscal years indicated for each purpose. The figures "2006" and "2007" used in this 
53.19 	article mean that the appropriation or appropriations listed under them are available for 
53.20 	the fiscal year ending June 30, 2006, or June 30, 2007, respectively. Appropriations in 
53.21 	this article for the fiscal year ending June 30, 2006, are effective the day following final 
53.22 	enactment.

53.23	SUMMARY BY FUND
	
53.24			2006
		2007
		TOTAL
	
53.25	General
	$
	577,000
	$
	1,838,000
	$
	2,415,000
	
53.26	Natural Resources
		-0-
		530,000
		530,000
	
53.27	TOTAL
	$
	577,000
	$
	2,368,000
	$
	2,945,000

53.28				APPROPRIATIONS
	
53.29				Available for the Year
	
53.30				Ending June 30
	
53.31					2006
		2007

54.1	Sec. 2. DEPARTMENT OF AGRICULTURE
 	$
	158,000
	$
	648,000
	
54.2 	This appropriation includes money for the 
54.3 	following purposes:

54.4	(a) Invasive species control activities
		118,000
		130,000

54.5
54.6	(b) Compensation payments for livestock 
depredation and crop damage
		40,000
		53,000

54.7
54.8	(c) Plant pathology and biological control 
facility operations
		-0-
		190,000

54.954.10
	(d) Grant to Second Harvest Heartland on behalf 
of Minnesota's six Second Harvest food banks
		-0-
		200,000
	
54.11 	For the purchase of milk for distribution 
54.12 	to Minnesota's food shelves and other 
54.13 	charitable organizations that are eligible 
54.14 	to receive food from the food banks. This 
54.15 	appropriation becomes base-level funding.
54.16 	Milk purchased under the grants must be 
54.17 	acquired from Minnesota milk processors 
54.18 	and based on low-cost bids. The milk 
54.19 	must be allocated to each Second Harvest 
54.20 	food bank serving Minnesota according 
54.21 	to the formula used in the distribution of 
54.22 	United States Department of Agriculture 
54.23 	commodities under the Emergency Food 
54.24 	Assistance Program. Second Harvest 
54.25 	Heartland must submit quarterly reports 
54.26 	to the commissioner on forms prescribed 
54.27 	by the commissioner. The reports must 
54.28 	include, but are not limited to, information 
54.29 	on the expenditure of money, the amount 
54.30 	of milk purchased, and the organizations 
54.31 	to which the milk was distributed.  Second 
54.32 	Harvest Heartland may enter into contracts 
55.1 	or agreements with food banks for shared 
55.2 	funding or reimbursement of the direct 
55.3 	purchase of milk.  Each food bank receiving 
55.4 	money from this appropriation may use up to 
55.5 	two percent of the grant for administrative 
55.6 	expenses.

55.7	(e) Renewable energy
		-0-
		75,000
	
55.8 	To the Department of Agriculture for 
55.9 	handling increased renewable energy 
55.10 	inquiries.

55.11	Sec. 3. BOARD OF ANIMAL HEALTH
 		277,000
		408,000
	
55.12 	To eliminate bovine tuberculosis from cattle 
55.13 	herds in Minnesota. This is a onetime 
55.14 	appropriation.

55.15
55.16	Sec. 4. DEPARTMENT OF NATURAL 
RESOURCES
 		142,000
		1,312,000

55.17	Summary by Fund
	
55.18		2006
	2007
	
55.19	General
	142,000
	782,000
	
55.20	Natural Resources
	-0-
	530,000

55.21
55.22	(a) Bovine tuberculosis surveillance and 
diagnosis
		88,000
		132,000
	
55.23 	To the Department of Natural Resources to 
55.24 	diminish the risk of disease transmission 
55.25 	in domestic livestock. This is a onetime 
55.26 	appropriation.

55.27	(b) Invasive species
		-0-
		550,000
	
55.28 	To the Department of Natural Resources for 
55.29 	prevention and control of harmful invasive 
56.1 	species. This appropriation includes money 
56.2 	for the control of curly leaf pondweed in 
56.3 	Lake Osakis.

56.4	(c) Minnesota Shooting Sports Education Center
		-0-
		100,000
	
56.5 	The commissioner may make direct 
56.6 	expenditures for the operation of the center 
56.7 	or contract with another entity to operate the 
56.8 	center. This appropriation is available only 
56.9 	to the extent it is matched by at least $1 of 
56.10 	nonstate money from gifts or grants for each 
56.11 	$2 of state money. This appropriation is 
56.12 	added to the agency base of the Department 
56.13 	of Natural Resources.

56.14	(d) Canoe routes
		-0-
		130,000
	
56.15 	This appropriation is from the water 
56.16 	recreation account in the natural resources 
56.17 	fund to the commissioner of natural resources 
56.18 	to cooperate with local units of government 
56.19 	in marking routes and designating river 
56.20 	accesses and campsites under Minnesota 
56.21 	Statutes, section 85.32. This is a onetime 
56.22 	appropriation and is available until spent.

56.23	(e) Emergency deterrent materials assistance
		54,000
		-0-
	
56.24 	For the emergency deterrent materials 
56.25 	assistance program under Minnesota 
56.26 	Statutes, section 97A.028, subdivision 
56.27 	3. This is a onetime appropriation and is 
56.28 	available until June 30, 2007.

56.29	(f) State park and recreation area operation
		-0-
		400,000
	
56.30 	$400,000 is from the state parks account 
56.31 	in the natural resources fund for state park 
56.32 	and recreation area operations and for the 
57.1 	operation and maintenance of the U.S. Army 
57.2 	Corps of Engineers recreation sites on Cross 
57.3 	Lake, Gull Lake, Sandy Lake, Leech Lake, 
57.4 	Lake Pokegama, and Lake Winnibigoshish. 
57.5 	The expenditure of money on the U.S. 
57.6 	Army Corps of Engineers recreation sites is 
57.7 	contingent upon acceptance of a long-term 
57.8 	agreement with the U.S. Army Corps of 
57.9 	Engineers. Acceptance may be through a 
57.10 	lease arrangement, a transfer of the recreation 
57.11 	lands, or other agreement with the U.S. 
57.12 	Army Corps of Engineers. Rules of the 
57.13 	commissioner of natural resources relating 
57.14 	to state recreation areas apply to U.S. Army 
57.15 	Corps of Engineers recreation sites managed 
57.16 	by the commissioner pursuant to this 
57.17 	paragraph. This is a onetime appropriation.
57.18 	The commissioner may establish fees 
57.19 	for these recreation sites as provided 
57.20 	in Minnesota Statutes, section 85.052, 
57.21 	subdivision 3. The money collected from 
57.22 	fees established under this paragraph shall 
57.23 	be deposited in the natural resources fund 
57.24 	and credited to the state parks account. 
57.25 	Until June 30, 2007, money deposited in the 
57.26 	natural resources fund from fees established 
57.27 	under this paragraph is appropriated to 
57.28 	the commissioner for the operation and 
57.29 	maintenance of the U.S. Army Corps of 
57.30 	Engineers recreation sites.

57.31 	Sec. 5. Minnesota Statutes 2005 Supplement, section 35.05, is amended to read:
57.32 	35.05 AUTHORITY OF STATE BOARD.
57.33 	(a) The state board may quarantine or kill any domestic animal infected with, or 
57.34 	which has been exposed to, a contagious or infectious dangerous disease if it is necessary 
57.35 	to protect the health of the domestic animals of the state.
58.1 	(b) The board may regulate or prohibit the arrival in and departure from the state of 
58.2 	infected or exposed animals and, in case of violation of any rule or prohibition, may detain 
58.3 	any animal at its owner's expense. The board may regulate or prohibit the importation of 
58.4 	domestic animals which, in its opinion, may injure the health of Minnesota livestock.
58.5 	(c) When the governor declares an emergency under section 35.0661, the board, 
58.6 	through its executive director, may assume control of such resources within the University 
58.7 	of Minnesota's Veterinary Diagnostic Laboratory as necessary to effectively address the 
58.8 	disease outbreak. The director of the laboratory and other laboratory personnel must 
58.9 	cooperate fully in performing necessary functions related to the outbreak or threatened 
58.10 	outbreak.
58.11 	(d) Rules adopted by the board under authority of this chapter must be published 
58.12 	in the State Register The board may test or require tests of any bovine or cervidae in 
58.13 	the state when the board deems it necessary to achieve or maintain bovine tuberculosis 
58.14 	accredited free state or zone status under the regulations and laws administered by the 
58.15 	United States Department of Agriculture.

58.16 	Sec. 6. Minnesota Statutes 2004, section 84.0835, subdivision 3, is amended to read:
58.17 		Subd. 3.Citation authority. Employees designated by the commissioner under 
58.18 	subdivision 1 may issue citations, as specifically authorized under this subdivision, for 
58.19 	violations of:
58.20 	(1) sections  85.052, subdivision 3 (payment of camping fees in state parks) and,
58.21 	85.45, subdivision 1 (cross-country ski pass), and 85.46 (horse trail pass); 
58.22 	(2) rules relating to hours and days of operation, restricted areas, noise, fireworks, 
58.23 	environmental protection, fires and refuse, pets, picnicking, camping and dispersed 
58.24 	camping, nonmotorized uses, construction of unauthorized permanent trails, mooring of 
58.25 	boats, fish cleaning, swimming, storage and abandonment of personal property, structures 
58.26 	and stands, animal trespass, state park individual and group motor vehicle permits, 
58.27 	licensed motor vehicles, designated roads, and snowmobile operation off trails;
58.28 	(3) rules relating to off-highway vehicle registration, display of registration numbers, 
58.29 	required equipment, operation restrictions, off-trail use for hunting and trapping, and 
58.30 	operation in lakes, rivers, and streams;
58.31 	(4) rules relating to off-highway vehicle and snowmobile operation causing damage 
58.32 	or in closed areas within the Richard J. Dorer Memorial Hardwood State Forest;
58.33 	(5) rules relating to parking, snow removal, and damage on state forest roads; and
58.34 	(6) rules relating to controlled hunting zones on major wildlife management units.

58.35 	EFFECTIVE DATE. This section is effective January 1, 2007.

59.1 	Sec. 7. Minnesota Statutes 2004, section 85.32, subdivision 1, is amended to read:
59.2 		Subdivision 1.Areas marked. The commissioner of natural resources is authorized 
59.3 	in cooperation with local units of government and private individuals and groups when 
59.4 	feasible to mark canoe and boating routes on the Little Fork, Big Fork, Minnesota, 
59.5 	St. Croix, Snake, Mississippi, Red Lake, Cannon, Straight, Des Moines, Crow Wing, 
59.6 	St. Louis, Pine, Rum, Kettle, Cloquet, Root, Zumbro, Pomme de Terre within Swift 
59.7 	County, Watonwan, Cottonwood, Whitewater, Chippewa from Benson in Swift County to 
59.8 	Montevideo in Chippewa County, Long Prairie, Red River of the North, Sauk, Otter Tail, 
59.9 	and Crow Rivers which have historic and scenic values and to mark appropriately points 
59.10 	of interest, portages, camp sites, and all dams, rapids, waterfalls, whirlpools, and other 
59.11 	serious hazards which are dangerous to canoe and watercraft travelers.

59.12 	Sec. 8. [85.46] HORSE TRAIL PASS.
59.13 		Subdivision 1.Pass in possession. While riding, leading, or driving a horse on 
59.14 	horse trails and associated day use areas on state trails, in state parks, in state recreation 
59.15 	areas, and in state forests, a person 16 years of age or over shall carry in immediate 
59.16 	possession and visibly display on person or horse tack, a valid horse trail pass. The pass 
59.17 	must be available for inspection by a peace officer, a conservation officer, or an employee 
59.18 	designated under section 84.0835.
59.19 		Subd. 2.License agents. (a) The commissioner of natural resources may appoint 
59.20 	agents to issue and sell horse trail passes. The commissioner may revoke the appointment 
59.21 	of an agent at any time.
59.22 	(b) The commissioner may adopt additional rules as provided in section 97A.485, 
59.23 	subdivision 11. An agent shall observe all rules adopted by the commissioner for the 
59.24 	accounting and handling of passes according to section 97A.485, subdivision 11.
59.25 	(c) An agent must promptly deposit and remit all money received from the sale of 
59.26 	passes, except issuing fees, to the commissioner.
59.27 		Subd. 3.Issuance. The commissioner of natural resources and agents shall issue 
59.28 	and sell horse trail passes. The pass shall include the applicant's signature and other 
59.29 	information deemed necessary by the commissioner. To be valid, a pass must be signed by 
59.30 	the person riding, leading, or driving the horse.
59.31 		Subd. 4.Pass fees. (a) The fee for an annual horse trail pass is $20 for an individual 
59.32 	16 years of age and over. The fee shall be collected at the time the pass is purchased. 
59.33 	Annual passes are valid for one year beginning January 1 and ending December 31.
60.1 	(b) The fee for a daily horse trail pass is $4 for an individual 16 years of age and 
60.2 	over. The fee shall be collected at the time the pass is purchased. The daily pass is valid 
60.3 	only for the date designated on the pass form.
60.4 		Subd. 5.Issuing fee. In addition to the fee for a horse trail pass, an issuing fee of 
60.5 	$1 per pass shall be charged. The issuing fee shall be retained by the seller of the pass. 
60.6 	Issuing fees for passes sold by the commissioner of natural resources shall be deposited in 
60.7 	the state treasury and credited to the horse trail account in the natural resources fund and 
60.8 	are appropriated to the commissioner for the operation of the electronic licensing system. 
60.9 	A pass shall indicate the amount of the fee that is retained by the seller.
60.10 		Subd. 6.Disposition of receipts. Fees collected under this section, except for the 
60.11 	issuing fee, shall be deposited in the state treasury and credited to the horse trail account 
60.12 	in the natural resources fund. Except for the electronic licensing system commission 
60.13 	established by the commissioner under section 84.027, subdivision 15, the fees are 
60.14 	appropriated to the commissioner of natural resources for trail acquisition, trail and facility 
60.15 	development, and maintenance, enforcement, and rehabilitation of horse trails or trails 
60.16 	authorized for horse use, whether for riding, leading, or driving, on state trails and in state 
60.17 	parks, state recreation areas, and state forests.
60.18 		Subd. 7.Duplicate horse trail passes. The commissioner of natural resources and 
60.19 	agents shall issue a duplicate pass to a person whose pass is lost or destroyed using the 
60.20 	process established under section 97A.405, subdivision 3, and rules adopted thereunder. 
60.21 	The fee for a duplicate horse trail pass is $2, with an issuing fee of 50 cents.

60.22 	EFFECTIVE DATE. This section is effective January 1, 2007.

60.23 	Sec. 9. Minnesota Statutes 2004, section 97A.028, subdivision 3, is amended to read:
60.24 		Subd. 3.Emergency deterrent materials assistance. (a) For the purposes of this 
60.25 	subdivision, "cooperative damage management agreement" means an agreement between 
60.26 	a landowner or tenant and the commissioner that establishes a program for addressing the 
60.27 	problem of destruction of the landowner's or tenant's specialty crops or stored forage 
60.28 	crops by wild animals, or destruction of agricultural crops by flightless Canada geese.
60.29 	(b) A landowner or tenant may apply to the commissioner for emergency deterrent 
60.30 	materials assistance in controlling destruction of the landowner's or tenant's specialty 
60.31 	crops or stored forage crops by wild animals, or destruction of agricultural crops by 
60.32 	flightless Canada geese. Subject to the availability of money appropriated for this purpose, 
60.33 	the commissioner shall provide suitable deterrent materials when the commissioner 
60.34 	determines that:
61.1 	(1) immediate action is necessary to prevent significant damage from continuing or 
61.2 	to prevent the spread of bovine tuberculosis; and
61.3 	(2) a cooperative damage management agreement cannot be implemented 
61.4 	immediately.
61.5 	(c) A person may receive emergency deterrent materials assistance under this 
61.6 	subdivision more than once, but the cumulative total value of deterrent materials provided 
61.7 	to a person, or for use on a parcel, may not exceed $3,000 for specialty crops, $5,000 for 
61.8 	measures to prevent the spread of bovine tuberculosis within a five-mile radius of a cattle 
61.9 	herd that is infected with bovine tuberculosis as determined by the Board of Animal 
61.10 	Health, or $750 for protecting stored forage crops, or $500 for agricultural crops damaged 
61.11 	by flightless Canada geese. If a person is a co-owner or cotenant with respect to the 
61.12 	specialty crops for which the deterrent materials are provided, the deterrent materials are 
61.13 	deemed to be "provided" to the person for the purposes of this paragraph.
61.14 	(d) As a condition of receiving emergency deterrent materials assistance under this 
61.15 	subdivision, a landowner or tenant shall enter into a cooperative damage management 
61.16 	agreement with the commissioner. Deterrent materials provided by the commissioner may 
61.17 	include repellents, fencing materials, or other materials recommended in the agreement 
61.18 	to alleviate the damage problem. If requested by a landowner or tenant, any fencing 
61.19 	materials provided must be capable of providing long-term protection of specialty crops. 
61.20 	A landowner or tenant who receives emergency deterrent materials assistance under 
61.21 	this subdivision shall comply with the terms of the cooperative damage management 
61.22 	agreement.

61.23 	Sec. 10. Laws 2005, First Special Session chapter 1, article 2, section 3, subdivision 2, 
61.24 	is amended to read:

61.25
61.26	Subd. 2.Land and Mineral Resources 
Management
 	
61.27	8,903,000 8,653,000
	8,675,000

61.28	Summary by Fund
	
61.29
61.30	General 
	5,498,000
5,248,000 
	5,248,000
	
61.31	Natural Resources
	2,222,000
	2,222,000
	
61.32	Game and Fish
	 983,000
	1,005,000
	
61.33	Permanent School
	 200,000
	 200,000
	
62.1 	$275,000 the first year and $275,000  the 
62.2 	second year are for iron ore  cooperative 
62.3 	research, of which $137,500  the first year 
62.4 	and $137,500 the second  year are available 
62.5 	only as matched by  $1 of nonstate money for 
62.6 	each $1 of  state money.  The match may be 
62.7 	cash or  in-kind.  
62.8 	$86,000 the first year and $86,000 the  
62.9 	second year are for minerals  cooperative 
62.10 	environmental research, of  which $43,000 
62.11 	the first year and  $43,000 the second year are 
62.12 	available  only as matched by $1 of nonstate 
62.13 	money  for each $1 of state money.  The 
62.14 	match  may be cash or in-kind.  
62.15 	$2,046,000 the first year and  $2,046,000 
62.16 	the second year are from the  minerals 
62.17 	management account in the  natural resources 
62.18 	fund for only the  purposes specified in 
62.19 	new Minnesota  Statutes, section 93.2236, 
62.20 	paragraph  (c).  Of this amount, $1,526,000 
62.21 	the  first year and $1,526,000 the second  
62.22 	year are for mineral resource  management, 
62.23 	$420,000 the first year and  $420,000 the 
62.24 	second year are for  projects to enhance future 
62.25 	income and  promote new opportunities, 
62.26 	including  value-added iron products, 
62.27 	geological  mapping, and mercury research, 
62.28 	and  $100,000 the first year and $100,000  the 
62.29 	second year are for environmental  review and 
62.30 	the processing of permits  for mining projects 
62.31 	that involve  state-owned mineral rights.  The  
62.32 	appropriation is from the revenue  deposited 
62.33 	in the minerals management  account 
62.34 	under Minnesota Statutes,  section 93.22, 
62.35 	subdivision 1, paragraph  (b).  $100,000 each 
62.36 	year is a onetime  appropriation.  
63.1 	$150,000 the first year and $150,000  
63.2 	the second year are from the state  forest 
63.3 	suspense account in the  permanent school 
63.4 	fund to accelerate  land exchanges, land 
63.5 	sales, and  commercial leasing of school 
63.6 	trust  lands.  This appropriation is to be  used 
63.7 	toward meeting the provisions of  Minnesota 
63.8 	Statutes, section 92.121, to  exchange school 
63.9 	trust lands or put  alternatives in effect when 
63.10 	management  practices have diminished 
63.11 	or prohibited  revenue generation, and the 
63.12 	direction  of Minnesota Statutes, section 
63.13 	127A.31,  to secure maximum long-term 
63.14 	economic  return from the school trust lands  
63.15 	consistent with fiduciary  responsibilities and 
63.16 	sound natural  resources conservation and 
63.17 	management  principles.  
63.18 	$50,000 the first year and $50,000 the  second 
63.19 	year are from the state forest  suspense 
63.20 	account in the permanent  school fund to 
63.21 	identify, evaluate, and  lease construction 
63.22 	aggregate located on  school trust lands.  
63.23 	$250,000 the first year is for a grant  to 
63.24 	the Board of Regents of the  University of 
63.25 	Minnesota to drill a  5,000 foot core sampling 
63.26 	bore hole at  the Tower-Soudan mine complex 
63.27 	in  support of a National Science  Foundation 
63.28 	grant.  This is a onetime  appropriation.  
63.29 	

63.30 	Sec. 11. EFFECTIVE DATE.
 63.31 	Unless otherwise specified, this article is effective the day following final enactment.

64.1 	ARTICLE 10
64.2 	CLEAN WATER LEGACY

64.3	Section 1. CLEAN WATER LEGACY APPROPRIATIONS.
 		
64.4 	The sums shown in the columns marked "APPROPRIATIONS" are appropriated 
64.5 	from the general fund to the agencies and for the purposes specified in this article.  Unless 
64.6 	otherwise specified, the appropriations in this article are available for the fiscal year 
64.7 	ending June 30, 2007. Appropriations in this article that are encumbered under contract, 
64.8 	including grant contracts, on or before June 30, 2007, are available until June 30, 2009. 
64.9 	All the appropriations in this article are onetime appropriations.
64.10 	The appropriations in this article must be used to protect, restore, and preserve 
64.11 	the quality of Minnesota's surface waters. Allowable activities include surface water 
64.12 	assessments, program activities that target identified impairments, and development of 
64.13 	total maximum daily load studies (TMDL's) as required by section 303(d) of the federal 
64.14 	Clean Water Act, United States Code, title 33, section 1313(d), and applicable federal 
64.15 	regulations.

64.16	SUMMARY BY FUND
	
64.17					2007
		TOTAL
	
64.18	General
			$
	15,000,000
	$
	15,000,000

64.19				APPROPRIATIONS
	
64.20				Available for the Year
	
64.21				Ending June 30
	
64.22							2007

64.23	Sec. 2. POLLUTION CONTROL AGENCY
 			$
	5,030,000
	
64.24 	This appropriation may be spent for the 
64.25 	following purposes:

64.26
64.27	(a) Statewide assessment of surface water 
quality and trends
				1,860,000
	
64.28 	Up to $1,010,000 is available for grants or 
64.29 	contracts to support citizen monitoring of 
64.30 	surface waters.

65.1
65.2
65.3
65.4	(b) Develop TMDL's and TMDL 
implementation plans for waters listed 
on the United States Environmental Protection 
Agency approved 2004 impaired waters list
				3,170,000
	
65.5 	Up to $1,740,000 is available for grants or 
65.6 	contracts to develop TMDL's.

65.7	Sec. 3. PUBLIC FACILITIES AUTHORITY
 				100,000

65.8
65.9	Small community wastewater treatment loans 
and grants
				100,000

65.10	Sec. 4. AGRICULTURE DEPARTMENT
 				2,400,000
	
65.11 	This appropriation may be spent for the 
65.12 	following purposes:

65.13
65.14	(a) Agricultural best management practices loan 
program
				1,200,000
	
65.15 	For loans to producers and rural landowners. 
65.16 	This appropriation is available until spent. 
65.17 	At least $1,000,000 is available for 
65.18 	pass-through to local governments and 
65.19 	lenders for low-interest loans.

65.20	(b) Technical assistance
				400,000
	
65.21 	To expand technical assistance to producers 
65.22 	and conservation professionals on nutrient 
65.23 	and pasture management, target practices to 
65.24 	sources of water impairments, coordinate 
65.25 	federal and state farm conservation programs 
65.26 	to fully utilize federal conservation funds, 
65.27 	and expand conservation planning assistance 
65.28 	for producers.
66.1 	$210,000 is available for grants or contracts 
66.2 	to develop nutrient and conservation 
66.3 	planning assistance information materials.

66.4
66.5
66.6	(c) Research, evaluation, and effectiveness 
monitoring of agricultural practices in restoring 
impaired waters
				800,000

66.7
66.8	Sec. 5. BOARD OF WATER AND SOIL 
RESOURCES
 				5,840,000
	
66.9 	All of the money appropriated in this section 
66.10 	as grants to local governments shall be 
66.11 	administered through the Board of Water 
66.12 	and Soil Resources' local water resources 
66.13 	protection and management program under 
66.14 	Minnesota Statutes, section 103B.3369.
66.15 	This appropriation may be spent for the 
66.16 	following purposes:

66.17
66.18	(a) Targeted nonpoint restoration cost-share and 
incentive payments
				1,500,000
	
66.19 	Up to $1,400,000 is available for grants.

66.20
66.21
66.22	(b) Targeted nonpoint restoration technical, 
compliance, and engineering assistance 
activities
				2,000,000
	
66.23 	Up to $1,800,000 is available for grants.

66.24
66.25	(c) Reporting and evaluation of applied soil and 
water conservation practices
				200,000

66.26
66.27	(d) Grants to implement county individual 
sewage treatment system programs
				730,000

66.28
66.29
66.30	(e) Grants to support local nonpoint source 
protection activities related to lake and river 
protection and management
				1,410,000

67.1
67.2	Sec. 6. DEPARTMENT OF NATURAL 
RESOURCES
 				1,630,000
	
67.3 	This appropriation may be spent for the 
67.4 	following purposes:

67.5
67.6	(a) Statewide assessment of surface water 
quality and trends
				 280,000

67.7
67.8	(b) Acquire high priority, sensitive riparian 
lands
				500,000

67.967.10
67.11
67.12
	(c) Forest stewardship planning and 
implementation; research, evaluation, and 
monitoring; and technical assistance to local 
units of government
				850,000

67.13 	Sec. 7. Minnesota Statutes 2004, section 114D.30, subdivision 2, as added by 2006 S.F. 
67.14 	No. 762, if enacted, is amended to read:
67.15 		Subd. 2.Membership; appointment. The commissioners of natural resources, 
67.16 	agriculture, and the Pollution Control Agency, and the executive director of the Board of 
67.17 	Water and Soil Resources shall appoint one person from their respective agency to serve 
67.18 	as a member of the council.  Agency members serve as nonvoting members of the council. 
67.19 	SeventeenNineteen additional nonagency members of the council shall be appointed by 
67.20 	the governor as follows:
67.21 	(1) two members representing statewide farm organizations; 
67.22 	(2) one membertwo members representing business organizations; 
67.23 	(3) one membertwo members representing environmental organizations; 
67.24 	(4) one member representing soil and water conservation districts; 
67.25 	(5) one member representing watershed districts; 
67.26 	(6) one member representing nonprofit organizations focused on improvement of 
67.27 	Minnesota lakes or streams; 
67.28 	(7) two members representing organizations of county governments, one member 
67.29 	representing the interests of rural counties and one member representing the interests of 
67.30 	counties in the seven-county metropolitan area; 
67.31 	(8) two members representing organizations of city governments; 
68.1 	(9) one member representing the Metropolitan Council established under section 
68.2 	473.123;
68.3 	(10) one township officer;
68.4 	(11) one member representing the interests of tribal governments;
68.5 	(12) one member representing statewide hunting organizations;
68.6 	(13) one member representing the University of Minnesota or a Minnesota state 
68.7 	university; and 
68.8 	(14) one member representing statewide fishing organizations.
68.9 	Members appointed under clauses (1) to (14) must not be registered lobbyists. In making 
68.10 	appointments, the governor must attempt to provide for geographic balance. The members 
68.11 	of the council appointed by the governor are subject to the advice and consent of the senate.

68.12 	ARTICLE 11
68.13 	ECONOMIC DEVELOPMENT

68.14 	Section 1. ECONOMIC DEVELOPMENT APPROPRIATIONS.
 68.15 	The sums shown in the columns marked "APPROPRIATIONS" are added to the 
68.16 	appropriations in Laws 2005, First Special Session chapter 1, article 3, or other law to the 
68.17 	agencies and for the purposes specified in this article.  The appropriations are from the 
68.18 	general fund or another named fund and are available for the fiscal years indicated for 
68.19 	each purpose. The figures "2006" and "2007" used in this article mean that the addition 
68.20 	to the appropriation listed under them is available for the fiscal year ending June 30, 
68.21 	2006, or June 30, 2007, respectively. "The first year" is fiscal year 2006. "The second 
68.22 	year" is fiscal year 2007. "The biennium" is fiscal years 2006 and 2007.  Supplementary 
68.23 	appropriations and reductions to appropriations for the fiscal year ending June 30, 2006, 
68.24 	are effective the day following final enactment.

68.25	SUMMARY BY FUND
	
68.26			2006
		2007
		TOTAL
	
68.27	General
	$
	 - 0 -
	$
	29,552,000
	$
	29,552,000
	
68.28	Workforce Development
		1,250,000
		1,950,000
		3,200,000
	
68.29	Petroleum Tank Cleanup
		477,000
		478,000
		955,000
	
68.30
68.31	Telecommunications 
Access
				200,000
		200,000
	
68.32	TOTAL
	$
	1,727,000
	$
	32,180,000
	$
	 33,907,000

69.1				APPROPRIATIONS
	
69.2				Available for the Year
	
69.3				Ending June 30
	
69.4					2006
		2007

69.5
69.6	Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

69.7	Subdivision 1.Total appropriation
 	$
	1,250,000
	$
	29,552,000
	
69.8 	This appropriation includes money for the 
69.9 	purposes in subdivisions 2 to 13.

69.10
69.11	Subd. 2.Business and community 
development
 				467,000
	
69.12 	For a grant to BioBusiness Alliance 
69.13 	of Minnesota for bioscience business 
69.14 	development programs that will work to grow 
69.15 	and create bioscience jobs in this state and 
69.16 	position Minnesota as a global biobusiness 
69.17 	leader. An annual report on the expenditure 
69.18 	of the appropriation must be submitted to 
69.19 	the senate Environment, Agriculture, and 
69.20 	Economic Development Budget Division, 
69.21 	and the house of representatives Jobs and 
69.22 	Economic Opportunity Policy and Finance 
69.23 	Committee by June 30 of each fiscal year 
69.24 	until the appropriation is expended. The 
69.25 	report must include the impact, if available, 
69.26 	of the subsidy on reducing consumer costs of 
69.27 	bioengineered products, and the jobs created, 
69.28 	including wages and benefits. This is a 
69.29 	onetime appropriation.

69.30	Subd. 3.Youthbuild
 				150,000
	
69.31 	For the youthbuild program under Minnesota 
69.32 	Statutes, sections 116L.361 to 116L.366. 
70.1 	The base for this appropriation is $75,000 in 
70.2 	fiscal year 2008 and after.

70.3	Subd. 4.Hard hats program
 				200,000
	
70.4 	For a grant to the Summit Academy OIC for 
70.5 	the 100 hard hats program. This is a onetime 
70.6 	appropriation.

70.7	Subd. 5.Biotech partnership
 				15,000,000
	
70.8 	For the direct and indirect expenses of the 
70.9 	collaborative research partnership between 
70.10 	the University of Minnesota and the Mayo 
70.11 	Foundation for research in biotechnology 
70.12 	and medical genomics. The is a onetime 
70.13 	appropriation.
70.14 	An annual report on the expenditure of 
70.15 	this appropriation must be submitted 
70.16 	to the governor and the chairs of the 
70.17 	senate Higher Education Budget Division, 
70.18 	the house of representatives Higher 
70.19 	Education Finance Committee, the senate 
70.20 	Environment, Agriculture, and Economic 
70.21 	Development Budget Division, and 
70.22 	the house of representatives Jobs and 
70.23 	Economic Opportunity Policy and Finance 
70.24 	Committee by June 30 of each fiscal year 
70.25 	until the appropriation is expended. This 
70.26 	appropriation is available until expended.

70.27	Subd. 6.Itasca County infrastructure
 				11,500,000
	
70.28 	For transfer to the Minnesota minerals 21st 
70.29 	century fund for a grant to Itasca County to 
70.30 	design, construct, and equip roads, rail lines, 
70.31 	natural gas pipelines, water supply systems, 
70.32 	or wastewater collection and treatment 
70.33 	systems for a steel plant in Itasca County. Of 
71.1 	this amount, up to $500,000 may be used for 
71.2 	other mineral related projects in the taconite 
71.3 	relief area. This is a onetime appropriation.

71.4
71.5	Subd. 7.Programs for persons with 
developmental and mental disabilities
 				150,000
	
71.6 	For a grant to Advocating Change Together. 
71.7 	The grant must be used to provide training, 
71.8 	technical assistance, and resource materials 
71.9 	to persons with developmental and mental 
71.10 	health disabilities. This appropriation 
71.11 	becomes part of the base appropriation 
71.12 	for the Department of Employment and 
71.13 	Economic Development.

71.14	Subd. 8.Wastewater treatment
 				100,000
	
71.15 	For a grant to the city of Cedar Mills for costs 
71.16 	it incurred in construction of a wastewater 
71.17 	treatment system for 28 properties. The 
71.18 	city must use the money to reduce its 
71.19 	indebtedness for additional costs of the 
71.20 	system that was not part of the originally 
71.21 	planned project and resulted in excessive 
71.22 	costs to homeowners. This is a onetime 
71.23 	appropriation.

71.24	Subd. 9.Pilot workforce program
 				250,000
	
71.25 	This appropriation is from the workforce 
71.26 	development fund for grants to the West 
71.27 	Central Initiative in Fergus Falls. These 
71.28 	grants must be used to implement and operate 
71.29 	Northern Connections, a pilot workforce 
71.30 	program that provides one-stop supportive 
71.31 	services to assist individuals as they transition 
71.32 	into the workforce. This appropriation is 
71.33 	available to the extent matched by $1 of 
72.1 	nonstate money for each $1 of state money. 
72.2 	This is a onetime appropriation.

72.3	Subd. 10.Summer youth employment
 		1,250,000
		1,250,000
	
72.4 	This appropriation is from the workforce 
72.5 	development fund for grants to fund summer 
72.6 	youth employment in Minneapolis. The 
72.7 	grants shall be used to fund up to 500 jobs for 
72.8 	youth each summer. Of this appropriation, 
72.9 	$250,000 the first year and $250,000 the 
72.10 	second year are for a grant to the learn-to-earn 
72.11 	summer youth employment program. The 
72.12 	commissioner shall establish criteria for 
72.13 	awarding the grants. This appropriation is 
72.14 	available in either year of the biennium and 
72.15 	is available until spent.

72.16	Subd. 11.Veterans' memorial
 				10,000
	
72.17 	For a grant to the city of Worthington for 
72.18 	the construction of a veterans' memorial in 
72.19 	Freedom Veterans' Memorial Park. This 
72.20 	appropriation is contingent upon the receipt 
72.21 	of local matching money on a $1 to $1 basis. 
72.22 	This is a onetime appropriation.

72.23	Subd. 12.Workforce partnership
 				450,000
	
72.24 	This appropriation is from the workforce 
72.25 	development fund for a pilot project to 
72.26 	encourage the licensure in Minnesota of 
72.27 	foreign-trained health care professionals, 
72.28 	including physicians, nurses, dentists, 
72.29 	pharmacists, veterinarians, and other allied 
72.30 	health care professionals. The commissioner 
72.31 	must work with local workforce boards to 
72.32 	award grants to foreign-trained health care 
72.33 	professionals that are sufficient to cover the 
73.1 	actual costs of taking a course intended to 
73.2 	prepare health care professionals for required 
73.3 	licensing examinations and the fee for taking 
73.4 	required licensing examinations.  When 
73.5 	awarding grants, the commissioner must 
73.6 	consider whether the recipient's training 
73.7 	involves a medical specialty that is in demand 
73.8 	in one or more Minnesota communities. The 
73.9 	commissioner also must establish additional 
73.10 	criteria for the award of grants. The program 
73.11 	will begin on July 1, 2006, and end on June 
73.12 	30, 2007. The commissioner must submit a 
73.13 	report evaluating the effectiveness of the pilot 
73.14 	program to the legislative committees with 
73.15 	jurisdiction over employment by October 1, 
73.16 	2007. This is a onetime appropriation.

73.17	Subd. 13.Housing collaboration
 				25,000
	
73.18 	For a grant to the city of St. Louis 
73.19 	Park for the Meadowbrook collaborative 
73.20 	housing project to enhance youth outreach 
73.21 	services and to provide educational and 
73.22 	recreational programming for at-risk 
73.23 	youth. The collaborative must include a 
73.24 	cross section of public and private sector 
73.25 	community representatives. This is a onetime 
73.26 	appropriation.

73.27	Sec. 3. DEPARTMENT OF COMMERCE
 		477,000
		478,000
	
73.28 	Notwithstanding Minnesota Statutes, section 
73.29 	115C.09, subdivision 2a, this appropriation is 
73.30 	from the petroleum tank release cleanup fund 
73.31 	for costs reimbursable to the Department of 
73.32 	Transportation under Minnesota Statutes, 
73.33 	section 115C.09, that were incurred 
74.1 	before January 1, 2004. This is a onetime 
74.2 	appropriation.

74.3
74.4	Sec. 4. DEPARTMENT OF HUMAN 
SERVICES
 				200,000
	
74.5 	This appropriation is from the 
74.6 	telecommunications access Minnesota fund 
74.7 	under Minnesota Statutes, section 237.52, 
74.8 	to supplement the ongoing operational 
74.9 	expenses of the Commission Serving 
74.10 	Deaf and Hard-of-Hearing People. This 
74.11 	appropriation shall become part of base level 
74.12 	funding for the commission for the biennium 
74.13 	beginning July 1, 2007.

74.14	Sec. 5. BOXING COMMISSION
 				50,000
	
74.15 	To operate and administer the commission. 
74.16 	This is a onetime appropriation. 
74.17 	By December 15, 2006, the commission 
74.18 	must submit a report to the governor and 
74.19 	the legislature setting forth a fee schedule 
74.20 	that raises sufficient revenue to operate and 
74.21 	administer the commission in fiscal year 
74.22 	2008 and thereafter.

74.23	Sec. 6. EXPLORE MINNESOTA TOURISM
 				1,700,000
	
74.24 	For a grant to the Minnesota Film and 
74.25 	TV Board for reimbursements of up to 15 
74.26 	percent of film production costs incurred in 
74.27 	Minnesota, under Minnesota Statutes, section 
74.28 	116U.26. This appropriation is available for 
74.29 	films that begin filming on or after May 1, 
75.1 	2006, and is available until June 30, 2007. 
75.2 	This is a onetime appropriation.

75.3
75.4	Sec. 7. MINNESOTA HISTORICAL 
SOCIETY
 				200,000
	
75.5 	For a onetime grant to the Minnesota 
75.6 	Agricultural Interpretive Center in Waseca to 
75.7 	equip and restore current sites and exhibits.

75.8 	Sec. 8. Laws 2005, First Special Session chapter 1, article 3, section 2, subdivision 4, 
75.9 	is amended to read:
75.10 	

75.11	Subd. 4.Workforce Services
 		27,960,000
		28,160,000

75.12	Summary by Fund
	
75.13	General
	20,165,000
	20,165,000
	
75.14	Workforce  Development
	7,795,000
	7,995,000
	
75.15 	$4,864,000 the first year and  $4,864,000 the 
75.16 	second year are from the  general fund and 
75.17 	$7,420,000 the first  year and $7,420,000 
75.18 	the second year are  from the workforce 
75.19 	development fund for  extended employment 
75.20 	services for  persons with severe disabilities 
75.21 	or  related conditions under Minnesota  
75.22 	Statutes, section 268A.15.  Of the  amount 
75.23 	from the workforce development  fund, 
75.24 	$500,000 each year is onetime.  
75.25 	$1,690,000 the first year and  $1,690,000 
75.26 	the second year are from the  general 
75.27 	fund for grants under Minnesota  Statutes, 
75.28 	section 268A.11, for the  eight centers for 
75.29 	independent living.  Money not expended the 
75.30 	first year is  available the second year.  
75.31 	$150,000 the first year and $150,000  the 
75.32 	second year are from the general  fund 
76.1 	and $175,000 the first year and  $175,000 
76.2 	the second year are from the  workforce 
76.3 	development fund for grants  under Minnesota 
76.4 	Statutes, section  268A.03, to Rise, Inc. 
76.5 	for the  Minnesota Employment Center for 
76.6 	People  Who are Deaf or Hard-of-Hearing.  
76.7 	Money  not expended the first year is  available 
76.8 	the second year. Of the  amount from the 
76.9 	workforce development  fund, $150,000 each 
76.10 	year is onetime added to the budget base.  
76.11 	$1,000,000 the first year and  $1,000,000 
76.12 	the second year are from the  general fund 
76.13 	and $200,000 the first  year and $400,000 
76.14 	the second year are  from the workforce 
76.15 	development fund for  grants for programs 
76.16 	that provide  employment support services to 
76.17 	persons  with mental illness under Minnesota  
76.18 	Statutes, sections 268A.13 and  268A.14.  
76.19 	Up to $77,000 each year may  be used 
76.20 	for administrative and salary  expenses.  
76.21 	The appropriation from the  workforce 
76.22 	development fund is onetime.  
76.23 	$4,940,000 the first year and  $4,940,000 the 
76.24 	second year are from the  general fund for 
76.25 	state services for the  blind activities.  
76.26 	$7,521,000 the first year and  $7,521,000 the 
76.27 	second year are from the  general fund for the 
76.28 	state's vocational  rehabilitation program for 
76.29 	people with  significant disabilities to assist 
76.30 	with  employment, under Minnesota Statutes,  
76.31 	chapter 268A.  
76.32 	On or after July 1, 2005, the  commissioner 
76.33 	of finance shall cancel  the unencumbered 
76.34 	balance in the  contaminated site cleanup and  
77.1 	development account to the unrestricted  fund 
77.2 	balance in the general fund.  

77.3 	Sec. 9. [116J.656] SMALL BUSINESS ACCESS TO FEDERAL RESEARCH 
77.4 	FUNDS.
77.5 	(a) The commissioner shall assist small businesses to access federal money through 
77.6 	the federal Small Business Innovation Research program and the Small Business 
77.7 	Technology Transfer program. In providing this assistance, the commissioner shall 
77.8 	maintain connections to eligible federal programs, assess specific funding opportunities, 
77.9 	review funding proposals, provide referrals to specific consulting services, and hold 
77.10 	training workshops throughout the state. 
77.11 	(b) Unless prohibited by federal law, the commissioner must implement fees for 
77.12 	services that help companies seek federal Phase II Small Business Innovation Research 
77.13 	grants. The fees must be deposited in a special revenue account and are annually 
77.14 	appropriated to the commissioner for the Small Business Innovation Research and Small 
77.15 	Business Technology Transfer programs.

77.16 	Sec. 13. [116U.26] FILM JOBS PRODUCTION PROGRAM.
77.17 	(a) The film production jobs program is created. The program shall be operated 
77.18 	by the Minnesota Film and TV Board with administrative oversight and control by the 
77.19 	director of Explore Minnesota Tourism. The program shall make payment to producers of 
77.20 	feature films, national television programs, documentaries, music videos, and commercials 
77.21 	that directly create new film jobs in Minnesota. To be eligible for a payment, a producer 
77.22 	must submit documentation to the Minnesota Film and TV Board of expenditures for 
77.23 	production costs incurred in Minnesota that are directly attributable to the production 
77.24 	in Minnesota of a film product. 
77.25 	The Minnesota Film and TV Board shall make recommendations to the director of 
77.26 	Explore Minnesota Tourism about program payment, but the director has the authority to 
77.27 	make the final determination on payments. The director's determination must be based 
77.28 	on proper documentation of eligible production costs submitted for payments. No more 
77.29 	than five percent of the funds appropriated for the program in any year may be expended 
77.30 	for administration. 
77.31 	(b) For the purposes of this section:
77.32 	(1) "production costs" means the cost of the following:
77.33 	(i) a story and scenario to be used for a film;
78.1 	(ii) salaries of talent, management, and labor, including payments to personal 
78.2 	services corporations for the services of a performing artist;
78.3 	(iii) set construction and operations, wardrobe, accessories, and related services;
78.4 	(iv) photography, sound synchronization, lighting, and related services;
78.5 	(v) editing and related services;
78.6 	(vi) rental of facilities and equipment; or
78.7 	(vii) other direct costs of producing the film in accordance with generally accepted 
78.8 	entertainment industry practice; and
78.9 	(2) "film" means a movie, television show, documentary, music video, or television 
78.10 	commercial, whether on film or video. Film does not include news, current events, public 
78.11 	programming, or a program that includes weather or market reports; a talk show; a 
78.12 	production with respect to a questionnaire or contest; a sports event or sports activity; a 
78.13 	gala presentation or awards show; a finished production that solicits funds; or a production 
78.14 	for which the production company is required under United States Code, title 18, section 
78.15 	2257, to maintain records with respect to a performer portrayed in a single-media or 
78.16 	multimedia program.

78.17 	Sec. 10. Minnesota Statutes 2005 Supplement, section 216C.41, subdivision 3, is 
78.18 	amended to read:
78.19 		Subd. 3.Eligibility window. Payments may be made under this section only for 
78.20 	electricity generated:
78.21 	(1) from a qualified hydroelectric facility that is operational and generating 
78.22 	electricity before December 31, 2007 2009;
78.23 	(2) from a qualified wind energy conversion facility that is operational and 
78.24 	generating electricity before January 1, 2007 2008; or
78.25 	(3) from a qualified on-farm biogas recovery facility from July 1, 2001, through 
78.26 	December 31, 2017.

78.27 	Sec. 11. Minnesota Statutes 2004, section 216C.41, subdivision 4, is amended to read:
78.28 		Subd. 4.Payment period. (a) A facility may receive payments under this section for 
78.29 	a ten-year period. No payment under this section may be made for electricity generated:
78.30 	(1) by a qualified hydroelectric facility after December 31, 2017 2019;
78.31 	(2) by a qualified wind energy conversion facility after December 31, 2017 2018; or
78.32 	(3) by a qualified on-farm biogas recovery facility after December 31, 2015.
78.33 	(b) The payment period begins and runs consecutively from the date the facility 
78.34 	begins generating electricity or, in the case of refurbishment of a hydropower facility, after 
79.1 	substantial repairs to the hydropower facility dam funded by the incentive payments are 
79.2 	initiated.

79.3 	Sec. 12. Minnesota Statutes 2004, section 326.105, is amended to read:
79.4 	326.105 FEES.
79.5 	The fee for licensure or renewal of licensure as an architect, professional engineer, 
79.6 	land surveyor, landscape architect, or geoscience professional is $120 per biennium. 
79.7 	The fee for certification as a certified interior designer or for renewal of the certificate 
79.8 	is $120 per biennium. The fee for an architect applying for original certification as a 
79.9 	certified interior designer is $50 per biennium. The initial license or certification fee for 
79.10 	all professions is $120. The renewal fee shall be paid biennially on or before June 30 of 
79.11 	each even-numbered year. The renewal fee, when paid by mail, is not timely paid unless it 
79.12 	is postmarked on or before June 30 of each even-numbered year. The application fee is 
79.13 	$25 for in-training applicants and $75 for professional license applicants.
79.14 	The fee for monitoring licensing examinations for applicants is $25, payable by 
79.15 	the applicant.

79.16 	Sec. 13. [341.21] DEFINITIONS.
79.17 		Subdivision 1.Applicability. The definitions in this section apply to this chapter.
79.18 		Subd. 2.Boxing. "Boxing" means the act of attack and defense with the fists, using 
79.19 	padded gloves, that is practiced as a sport under the rules of the Association of Boxing 
79.20 	Commissions, or equivalent. Where applicable, boxing includes tough person contests.
79.21 		Subd. 3.Commission. "Commission" means the Minnesota Boxing Commission.
79.22 		Subd. 4.Contest. "Contest" means any boxing  contest, match, or exhibition.
79.23 		Subd. 5.Professional. "Professional" means any person who competes for any 
79.24 	money prize or a prize that exceeds the value of $50 or teaches, pursues, or assists in the 
79.25 	practice of boxing  as a means of obtaining a livelihood or pecuniary gain.
79.26 		Subd. 6.Director. "Director" means the executive director of the commission.
79.27 		Subd. 7.Tough person contest. "Tough person contest," including contests 
79.28 	marketed as tough man and tough woman contests, means any boxing match consisting 
79.29 	of one-minute rounds between two or more persons who use their hands, or their feet, or 
79.30 	both, in any manner. Tough person contest does not include kick boxing or any recognized 
79.31 	martial arts competition.

79.32 	Sec. 14. [341.22] BOXING COMMISSION.
80.1 	There is hereby created the Minnesota Boxing Commission consisting of five 
80.2 	members who are citizens of this state. The members must be appointed by the governor. 
80.3 	One member of the commission must be a retired judge of the Minnesota district court, 
80.4 	Minnesota Court of Appeals, Minnesota Supreme Court, the United States District Court 
80.5 	for the District of Minnesota, or the Eighth Circuit Court of Appeals, and at least three 
80.6 	members must have knowledge of the boxing industry. The governor shall make serious 
80.7 	efforts to appoint qualified women to serve on the commission. Membership terms, 
80.8 	compensation of members, removal of members, the filling of membership vacancies, and 
80.9 	fiscal year and reporting requirements must be as provided in sections 214.07 to 214.09. 
80.10 	The provision of staff, administrative services, and office space; the review and processing 
80.11 	of complaints; the setting of fees; and other provisions relating to commission operations 
80.12 	must be as provided in chapter 214. The purpose of the commission is to protect health, 
80.13 	promote safety, and ensure fair events. 

80.14 	Sec. 15. [341.23] LIMITATIONS.
80.15 	No member of the Boxing Commission may directly or indirectly promote a boxing 
80.16 	contest, directly or indirectly engage in the managing of a boxer, or have an interest in any 
80.17 	manner in the proceeds from a boxing contest.

80.18 	Sec. 16. [341.24] EXECUTIVE DIRECTOR.
80.19 	The governor may appoint, and at pleasure remove, an executive director and 
80.20 	prescribe the powers and duties of the office. The executive director shall not be a member 
80.21 	of the commission. The commission may employ personnel necessary to the performance 
80.22 	of its duties.

80.23 	Sec. 17. [341.25] RULES.
80.24 	(a) The commission may adopt rules that include standards for the physical 
80.25 	examination and condition of boxers and referees.
80.26 	(b) The commission may adopt other rules necessary to carry out the purposes of 
80.27 	this chapter, including, but not limited to, the conduct of boxing exhibitions, bouts, and 
80.28 	fights, and their manner, supervision, time, and place.

80.29 	Sec. 18. [341.26] MEETINGS.
80.30 	The commission shall hold a regular meeting quarterly and may hold special 
80.31 	meetings. Except as otherwise provided in law, all meetings of the commission must be 
80.32 	open to the public and reasonable notice of the meetings must be given under chapter 13D.

81.1 	Sec. 19. [341.27] COMMISSION DUTIES.
81.2 	The commission shall:
81.3 	(1) issue, deny, renew, suspend, or revoke licenses;
81.4 	(2) make and maintain records of its acts and proceedings including the issuance, 
81.5 	denial, renewal, suspension, or revocation of licenses;
81.6 	(3) keep public records of the commission open to inspection at all reasonable times;
81.7 	(4) assist the director in the development of rules to be implemented under this 
81.8 	chapter; and
81.9 	(5) conform to the rules adopted under this chapter.

81.10 	Sec. 20. [341.28] REGULATION OF BOXING  CONTESTS.
81.11 		Subdivision 1.Regulatory authority; boxing. All professional boxing contests are 
81.12 	subject to this chapter. Every contestant in a boxing contest shall wear padded gloves that 
81.13 	weigh at least eight ounces. The commission shall, for every boxing contest:
81.14 	(1) direct a commission member to be present; and
81.15 	(2) direct the attending commission member to make a written report of the contest.
81.16 	All boxing contests within this state must be conducted according to the requirements 
81.17 	of this chapter.
81.18 		Subd. 2.Regulatory authority; tough person contests. All tough person contests, 
81.19 	including amateur tough person contests, are subject to this chapter. Every contestant in a 
81.20 	tough person contest shall wear padded gloves that weigh at least 12 ounces.

81.21 	Sec. 21. [341.29] JURISDICTION OF COMMISSION.
81.22 	The commission shall:
81.23 	(1) have sole direction, supervision, regulation, control, and jurisdiction over all 
81.24 	boxing contests and tough person contests held within this state unless a contest is exempt 
81.25 	from the application of this chapter under federal law;
81.26 	(2) have sole control, authority, and jurisdiction over all licenses required by this 
81.27 	chapter; and 
81.28 	(3) grant a license to an applicant if, in the judgment of the commission, the financial 
81.29 	responsibility, experience, character, and general fitness of the applicant are consistent 
81.30 	with the public interest, convenience, or necessity and the best interests of boxing and 
81.31 	conforms with this chapter and the commission's rules.

81.32 	Sec. 22. [341.30] LICENSURE; PERSONS REQUIRED TO OBTAIN 
81.33 	LICENSES; REQUIREMENTS; BACKGROUND INFORMATION; FEE; BOND.
82.1 		Subdivision 1.Licensure; individuals. All referees, judges, matchmakers, 
82.2 	promoters, trainers, ring announcers, timekeepers, ringside physicians, boxers, boxers' 
82.3 	managers, and boxers' seconds are required to be licensed by the commission. The 
82.4 	commission shall not permit any of these persons to participate in the holding or conduct 
82.5 	of any boxing contest unless the commission has first issued the person a license.
82.6 		Subd. 2.Entity licensure. Before participating in the holding or conduct of any 
82.7 	boxing  contest, a corporation, partnership, limited liability company, or other business 
82.8 	entity organized and existing under law, its officers and directors, and any person holding 
82.9 	25 percent or more of the ownership of the corporation shall obtain a license from the 
82.10 	commission and must be authorized to do business under the laws of this state.
82.11 		Subd. 3.Background investigation. The commission may require referees, judges, 
82.12 	matchmakers, promoters, and boxers to furnish fingerprints and background information 
82.13 	under commission rules before licensure. The commission shall charge a fee for receiving 
82.14 	fingerprints and background information in an amount determined by the commission. 
82.15 	The commission may require referees, judges, matchmakers, promoters, and boxers to 
82.16 	furnish fingerprints and background information before license renewal. The fee may 
82.17 	include a reasonable charge for expenses incurred by the commission or the Department 
82.18 	of Public Safety. For this purpose, the commission and the Department of Public Safety 
82.19 	may enter into an interagency agreement.
82.20 		Subd. 4.Prelicensure requirements. (a) Before the commission issues a license to 
82.21 	a promoter, matchmaker, corporation, or other business entity, the applicant shall:
82.22 	(1) provide the commission with a copy of any agreement between a contestant and 
82.23 	the applicant that binds the applicant to pay the contestant a certain fixed fee or percentage 
82.24 	of the gate receipts;
82.25 	(2) show on the application the owner or owners of the applicant entity and the 
82.26 	percentage of interest held by each owner holding a 25 percent or more interest in the 
82.27 	applicant;
82.28 	(3) provide the commission with a copy of the latest financial statement of the 
82.29 	entity; and
82.30 	(4) provide the commission with a copy or other proof acceptable to the commission 
82.31 	of the insurance contract or policy required by this chapter.
82.32 	(b) Before the commission issues a license to a promoter, the applicant shall deposit 
82.33 	with the commission a cash bond or surety bond in an amount set by the commission. 
82.34 	The bond shall be executed in favor of this state and shall be conditioned on the faithful 
82.35 	performance by the promoter of the promoter's obligations under this chapter and the 
82.36 	rules adopted under it.
83.1 	(c) Before the commission issues a license to a boxer, the applicant shall submit to the 
83.2 	commission the results of a current medical examination on forms furnished or approved 
83.3 	by the commission. The medical examination must include an ophthalmological and 
83.4 	neurological examination. The ophthalmological examination must be designed to detect 
83.5 	any retinal defects or other damage or condition of the eye that could be aggravated by 
83.6 	boxing. The neurological examination must include an electroencephalogram or medically 
83.7 	superior test if the boxer  has been knocked unconscious in a previous boxing or other 
83.8 	athletic competition. The commission may also order an electroencephalogram or other 
83.9 	appropriate neurological or physical examination before any contest, match, or exhibition 
83.10 	if it determines that the examination is desirable to protect the health of the boxer.

83.11 	Sec. 23. [341.31] SIMULCAST LICENSES.
83.12 	The commission shall issue a license to a person or organization holding, showing, or 
83.13 	exhibiting a simultaneous telecast of any live, current, or spontaneous boxing or sparring 
83.14 	match  on a closed circuit telecast or subscription television program viewed within the 
83.15 	state, whether originating in this state or elsewhere, and for which a charge is made. Each 
83.16 	person or organization shall apply for such a license in advance of each showing. No 
83.17 	showing may be licensed unless the person or organization applying for the license: 
83.18 	(1) certifies that the match is subject to the jurisdiction and regulation of a boxing or 
83.19 	athletic regulatory authority in another state or country; 
83.20 	(2) certifies the match is in compliance with the requirements of the authority; 
83.21 	(3) identifies the authority; and 
83.22 	(4) provides any information the commission may require.

83.23 	Sec. 24. [341.32] LICENSE FEES; EXPIRATION; RENEWAL.
83.24 		Subdivision 1.Annual licensure. The commission may establish and issue annual 
83.25 	licenses subject to the collection of advance fees by the commission for promoters, 
83.26 	matchmakers, managers, judges, referees, ring announcers, ringside physicians, 
83.27 	timekeepers, boxers,  boxers' trainers, boxers' seconds, business entities filing for a license 
83.28 	to participate in the holding of any boxing contest, and officers, directors, or other persons 
83.29 	affiliated with the business entity.
83.30 		Subd. 2.Expiration and renewal. A license expires December 31 at midnight in 
83.31 	the year of its issuance and may be renewed by filing an application for renewal with the 
83.32 	commission and payment of the license fee. An application for a license and renewal of a 
83.33 	license must be on a form provided by the commission. There is a 30-day grace period 
83.34 	during which a license may be renewed if a late filing penalty fee equal to the license fee 
84.1 	is submitted with the regular license fee. A licensee that files late shall not conduct any 
84.2 	activity regulated by this chapter until the commission has renewed the license. If the 
84.3 	licensee fails to apply to the commission within the 30-day grace period, the licensee must 
84.4 	apply for a new license under subdivision 1.

84.5 	Sec. 25. [341.321] FEE SCHEDULE.
84.6 	The fee schedule for licenses issued by the Minnesota Boxing Commission is as 
84.7 	follows: 
84.8 	(1) referees, $35 for each initial license and each renewal; 
84.9 	(2) promoters, $400 for each initial license and each renewal; 
84.10 	(3) judges, $25 for each initial license and each renewal; 
84.11 	(4) trainers, $35 for each initial license and each renewal; 
84.12 	(5) ring announcers, $25 for each initial license and each renewal; 
84.13 	(6) boxers' seconds, $25 for each initial license and each renewal; 
84.14 	(7) timekeepers, $25 for each initial license and each renewal; and 
84.15 	(8) boxers, $35 for each initial license and each renewal. 
84.16 	All fees collected by the Minnesota Boxing Commission must be deposited in the Boxing 
84.17 	Commission account in the special revenue fund. 

84.18 	Sec. 26. [341.33] CONTESTANTS AND REFEREES; PHYSICAL 
84.19 	EXAMINATION; ATTENDANCE OF PHYSICIAN; PAYMENT OF FEES.
84.20 		Subdivision 1.Examination by physician. All boxers and referees must be 
84.21 	examined by a physician licensed by this state within three hours before entering the 
84.22 	ring, and the examining physician shall immediately file with the commission a written 
84.23 	report of the examination. The physician's examination shall report on the condition 
84.24 	of the boxer's heart and general physical and neurological condition. The physician's 
84.25 	report may record the condition of the boxer's nervous system and brain as required by 
84.26 	the commission. The physician may prohibit the boxer from entering the ring if, in the 
84.27 	physician's professional opinion, it is in the best interest of the boxer's health. The cost of 
84.28 	the examination is payable by the person or entity conducting the contest or exhibition.
84.29 		Subd. 2.Attendance of physician. A person holding or sponsoring a boxing 
84.30 	contest shall have in attendance a physician licensed by this state. The commission may 
84.31 	establish a schedule of fees to be paid to each attending physician by the person holding 
84.32 	or sponsoring the contest.

84.33 	Sec. 27. [341.34] INSURANCE.
85.1 		Subdivision 1.Required insurance. The commission shall:
85.2 	(1) require insurance coverage for a boxer  to provide for medical, surgical, and 
85.3 	hospital care for injuries sustained in the ring in an amount of at least $20,000 and payable 
85.4 	to the boxer  as beneficiary; and
85.5 	(2) require life insurance for a boxer  in the amount of at least $20,000 payable in 
85.6 	case of accidental death resulting from injuries sustained in the ring.
85.7 		Subd. 2.Payment for insurance. The cost of the insurance required by this section 
85.8 	is payable by the promoter.

85.9 	Sec. 28. [341.35] PENALTIES FOR NONLICENSED EXHIBITIONS.
85.10 	Any person or persons who send or cause to be sent, published, or otherwise made 
85.11 	known, any challenge to fight what is commonly known as a prize fight, or engage in any 
85.12 	public boxing or sparring match or contest, with or without gloves, for any prize, reward, 
85.13 	or compensation, or for which any admission fee is charged directly or indirectly, or go into 
85.14 	training preparatory for the fight, exhibition, or contest, or act as a trainer, aider, abettor, 
85.15 	backer, umpire, referee, second, surgeon, assistant, or attendant at the fight, exhibition, or 
85.16 	contest, or in any preparation for same, and any owner or lessee of any ground, building, 
85.17 	or structure of any kind permitting the same to be used for any fight, exhibition, or contest, 
85.18 	is guilty of a misdemeanor unless a license for the holding of the fight, exhibition, or 
85.19 	contest has been issued by the commission in compliance with the rules adopted by it.

85.20 	Sec. 29. [341.37] APPROPRIATION.
85.21 	A Boxing Commission account is created in the special revenue fund. Money in 
85.22 	the account is annually appropriated to the Boxing Commission for the purposes of 
85.23 	conducting its statutory responsibilities and obligations.

85.24 	Sec. 30. Minnesota Statutes 2004, section 469.334, subdivision 1, is amended to read:
85.25 		Subdivision 1.Commissioner to designate. (a) The commissioner, in consultation 
85.26 	with the commissioner of revenue and the director of the Office of Strategic and 
85.27 	Long-Range Planning, shall designate not more than one or more biotechnology and 
85.28 	health sciences industry zone. Priority must be given to applicants with a development 
85.29 	plan that links a higher education/research institution with a biotechnology and health 
85.30 	sciences industry facility.
85.31 	(b) The commissioner may consult with the applicant prior to the designation of the 
85.32 	zone. The commissioner may modify the development plan, including the boundaries of 
85.33 	the zone or subzones, if in the commissioner's opinion a modified plan would better 
86.1 	meet the objectives of the biotechnology and health sciences industry zone program. The 
86.2 	commissioner shall notify the applicant of the modifications and provide a statement of 
86.3 	the reasons for the modifications.

86.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

86.5 	Sec. 31. Minnesota Statutes 2004, section 469.334, subdivision 4, is amended to read:
86.6 		Subd. 4.Designation schedule. (a) The schedule in paragraphs (b) to (e) applies to 
86.7 	the designation of the first biotechnology and health sciences industry zone.
86.8 	(b) The commissioner shall publish the form for applications and any procedural, 
86.9 	form, or content requirements for applications by no later than August 1, 2003. The 
86.10 	commissioner may publish these requirements on the Internet, in the State Register, or by 
86.11 	any other means the commissioner determines appropriate to disseminate the information 
86.12 	to potential applicants for designation.
86.13 	(c) Applications must be submitted by October 15, 2003.
86.14 	(d) The commissioner shall designate the zones by no later than December 31, 2003.
86.15 	(e) The designation of the zones takes effect January 1, 2004.
86.16 	(f) Additional zones may be designated in later years, following substantially the 
86.17 	same application and designation process as provided in paragraphs (b) to (e).

86.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

86.19 	Sec. 32.  REPEALER.
 86.20 	Minnesota Statutes 2004, section 116J.543, is repealed.

86.21 	ARTICLE 12
86.22 	TRANSPORTATION

86.23 	Section 1. TRANSPORTATION APPROPRIATIONS.
 86.24 	The sums shown in the columns marked "APPROPRIATIONS" are added to 
86.25 	the appropriations in Laws 2005, First Special Session chapter 6, article 1, or other 
86.26 	specified law, to the named agencies and for the specified purposes. The sums shown are 
86.27 	appropriated from the general fund, or another named fund, to be available for the fiscal 
86.28 	year indicated for each purpose. The figure "2007" used in this article means that the 
86.29 	appropriations listed under it are available for the fiscal year ending June 30, 2007.

86.30				APPROPRIATIONS
	
86.31				Available for the Year
	
86.32				Ending June 30, 2007

87.1						$

87.2	Sec. 2. TOTAL APPROPRIATION
 				692,000

87.3	Sec. 3. TRANSPORTATION

87.4	Department of Transportation radio tower
 				380,000
	
87.5 	To design and construct a new radio tower 
87.6 	in Roseau County. This appropriation is 
87.7 	available until expended.

87.8	Sec. 4. STATE PATROL

87.9	Automatic defibrillators
 				312,000
	
87.10 	For purchase of automated external 
87.11 	defibrillators for State Patrol vehicles. This 
87.12 	is a onetime appropriation. It is available 
87.13 	until June 30, 2009, and is available only 
87.14 	as matched by $2 from nonstate sources for 
87.15 	each $3 from this appropriation.

87.16 	Sec. 5. EFFECTIVE DATE.
 87.17 	This article is effective the day following final enactment.

87.18 	ARTICLE 13
87.19 	PUBLIC SAFETY

87.20	Section 1. PUBLIC SAFETY APPROPRIATIONS.
 	
87.21 	The sums shown in the columns marked "APPROPRIATIONS" are added to the 
87.22 	appropriations in Laws 2005, chapter 136, article 1, or other law to the agencies and for 
87.23 	the purposes specified in this article.  The appropriations are from the general fund or 
87.24 	another named fund and are available for the fiscal years indicated for each purpose.  The 
87.25 	figures "2006" and "2007" used in this article mean that the addition to the appropriation 
87.26 	listed under them is available for the fiscal year ending June 30, 2006, or June 30, 
87.27 	2007, respectively. "The first year" is fiscal year 2006. "The second year" is fiscal year 
87.28 	2007. "The biennium" is fiscal years 2006 and 2007.  Supplementary appropriations and 
88.1 	reductions to appropriations for the fiscal year ending June 30, 2006, are effective the 
88.2 	day following final enactment.

88.3	SUMMARY BY FUND
	
88.4			2006
		2007
		TOTAL
	
88.5	General
	$
	3,846,000
	$
	15,774,000
	$
	19,620,000
	
88.6	Special Revenue
		-0-
		200,000
		200,000
	
88.7	TOTAL
	$
	3,846,000
	$
	15,974,000
	$
	19,820,000

88.8				APPROPRIATIONS
	
88.9				Available for the Year
	
88.10				Ending June 30
	
88.11					2006
		2007

88.12	Sec. 2. SUPREME COURT
 	$
	-0-
	$
	600,000

88.13	AOD offenders
					
88.14 	For the first phase of a judicial initiative 
88.15 	to more effectively address the increasing 
88.16 	numbers of alcohol and other drug (AOD) 
88.17 	offenders coming into Minnesota courts, 
88.18 	including the increase in methamphetamine 
88.19 	offenders. This is a onetime appropriation. 
88.20 	Of this amount:
88.21 	(1) $300,000 is for a study to recommend a 
88.22 	more uniform and cost-effective structure 
88.23 	for creating statewide applications of the 
88.24 	problem-solving court model;
88.25 	(2) $100,000 is to augment treatment services 
88.26 	for problem-solving courts; and 
88.27 	(3) $200,000 is for development of a 
88.28 	multicounty pilot problem-solving court.

88.29
88.30	Sec. 3.  BOARD ON JUDICIAL 
STANDARDS
 		172,000
		-0-

89.1	Special hearings
					
89.2 	For costs of special hearings and an 
89.3 	investigation regarding complaints of judicial 
89.4 	misconduct. This is a onetime appropriation 
89.5 	and is available until June 30, 2007.

89.6	Sec. 4. PUBLIC SAFETY

89.7	Subdivision 1.Total appropriation
 		461,000
		4,628,000
	
89.8 	These appropriations are added to the 
89.9 	appropriations in Laws 2005, chapter 136, 
89.10 	article 1, section 9. The amounts that may 
89.11 	be spent from these appropriations for each 
89.12 	program are specified in subdivisions 2, 3, 
89.13 	and 4.

89.14	Subd.  2.Emergency Management
 		284,000
		-0-
	
89.15 	The fiscal year 2006 appropriation is to 
89.16 	provide matching funds for FEMA funds 
89.17 	received for natural disaster assistance 
89.18 	payments. This appropriation is available 
89.19 	on the day after enactment and is available 
89.20 	until June 30, 2007. This is a onetime 
89.21 	appropriation. 

89.22	Subd.  3.Criminal Apprehension
 		-0-
		1,300,000
	
89.23 	This appropriation may be spent for the 
89.24 	following purposes:

89.25	(a) Child pornography investigative unit
		-0-
		1,000,000
	
89.26 	To create a child pornography investigative 
89.27 	unit to assist law enforcement throughout 
89.28 	the state. The base for this activity shall be 
89.29 	$778,000 in fiscal year 2008 and fiscal year 
89.30 	2009.

90.1	(b) Predatory offender database
		-0-
		200,000
	
90.2 	For the enhancement of the predatory 
90.3 	offender database to facilitate public 
90.4 	notification of noncompliant sex offenders 
90.5 	via the Internet. The base for this activity 
90.6 	shall be $116,000 in fiscal year 2008 and 
90.7 	fiscal year 2009.

90.8
90.9	(c) Missing persons and unidentified bodies 
backlog
		-0-
		100,000
	
90.10 	To address the missing persons and 
90.11 	unidentified bodies backlog. This is a 
90.12 	onetime appropriation.
90.13 	The superintendent shall coordinate with 
90.14 	federal and local units of government; 
90.15 	federal, state, and local law enforcement 
90.16 	agencies; medical examiners; coroners; 
90.17 	odontologists; and other entities to reduce 
90.18 	the state's reporting, data entry, and 
90.19 	record-keeping backlog relating to missing 
90.20 	persons and unidentified bodies. To the 
90.21 	degree feasible, the superintendent shall 
90.22 	ensure that all necessary data and samples, 
90.23 	including, but not limited to, DNA samples 
90.24 	and dental records get entered into all 
90.25 	relevant federal and state databases.
90.26 	By February 1, 2007, the superintendent shall 
90.27 	report to the chairs and ranking minority 
90.28 	members of the senate and house committees 
90.29 	and divisions having jurisdiction over 
90.30 	criminal justice policy and funding on the 
90.31 	efforts to reduce the state's backlog. The 
90.32 	report must give detailed information on how 
90.33 	this appropriation was spent and how this 
90.34 	affected the backlog. In addition, the report 
91.1 	must make recommendations for changes 
91.2 	to state law, including suggested legislative 
91.3 	language, to improve reporting, data entry, 
91.4 	and record keeping relating to future cases 
91.5 	involving missing persons and unidentified 
91.6 	bodies.

91.7 	The superintendent, in consultation with 
91.8 	the Minnesota Sheriffs Association and the 
91.9 	Minnesota Chiefs of Police Association, 
91.10 	shall develop a model policy to address law 
91.11 	enforcement efforts and duties regarding 
91.12 	missing adults and provide training to local 
91.13 	law enforcement agencies on this model 
91.14 	policy. 
91.15 	By February 1, 2007, the superintendent shall 
91.16 	report to the chairs and ranking minority 
91.17 	members of the senate and house committees 
91.18 	and divisions having jurisdiction over 
91.19 	criminal justice policy and funding on the 
91.20 	model policy and training.

91.21	Subd. 4.Office of justice programs
 		177,000
		3,328,000
	
91.22 	This appropriation may be spent for the 
91.23 	following purposes:

91.24	(a) Gang strike force and narcotic task forces
		-0-
		800,000
	
91.25 	For expanded operations of the criminal gang 
91.26 	strike force and narcotics task forces. This 
91.27 	money is to be used to expand the activities 
91.28 	of the criminal gang strike force and narcotics 
91.29 	task forces to include investigations of gang 
91.30 	or narcotics-related human trafficking and 
91.31 	domestic or international drug trafficking 
91.32 	cases. This appropriation must be used to 
91.33 	increase the complement of individuals 
92.1 	assigned to the criminal gang strike force and 
92.2 	narcotics task forces throughout the state.

92.3
92.4	(b) Safe harbor for sexually exploited youth 
pilot project
		-0-
		98,000
	
92.5 	For a grant to Ramsey County to implement 
92.6 	the safe harbor for sexually exploited youth 
92.7 	pilot project. The project must develop a 
92.8 	victim services model to address the needs 
92.9 	of sexually exploited youth. The project 
92.10 	must focus on intervention and prevention 
92.11 	methods; training for law enforcement, 
92.12 	educators, social services providers, health 
92.13 	care workers, advocates, court officials, 
92.14 	prosecutors, and public defenders; and 
92.15 	programs promoting positive outcomes 
92.16 	for victims. The project must include 
92.17 	development and implementation of a 
92.18 	statewide model protocol for intervention 
92.19 	and response methods for professionals, 
92.20 	individuals, and agencies that may encounter 
92.21 	sexually exploited youth. "Sexually 
92.22 	exploited youth" include juvenile runaways, 
92.23 	truants, and victims of criminal sexual 
92.24 	conduct, prostitution, labor trafficking, sex 
92.25 	trafficking, domestic abuse, and assault. This 
92.26 	is a onetime appropriation. 
92.27 	By January 15, 2008, Ramsey County shall 
92.28 	report to the chairs and ranking minority 
92.29 	members of the senate and house committees 
92.30 	and divisions having jurisdiction over 
92.31 	criminal justice funding and policy on the 
92.32 	results of the pilot project. 

92.33	(c) Human trafficking task force and plan
		-0-
		75,000
	
93.1 	To implement Minnesota Statutes, sections 
93.2 	299A.78 to 299A.7955, relating to the human 
93.3 	trafficking task force and plan. This is a 
93.4 	onetime appropriation.

93.5	(d) Legal advocacy trafficking victims
		-0-
		60,000
	
93.6 	For grants to three weekly clinics in 
93.7 	Hennepin County that are staffed by 
93.8 	attorneys from a nonprofit organization that 
93.9 	provides free legal services to immigrants. 
93.10 	This is a onetime appropriation.

93.11	(e) Toll-free hotline
		-0-
		35,000
	
93.12 	To implement the toll-free hotline for 
93.13 	trafficking victims described in Minnesota 
93.14 	Statutes, section 299A.7957. The base 
93.15 	budget for this activity is $15,000 in fiscal 
93.16 	year 2008 and fiscal year 2009.

93.17	(f) Youth intervention programs
		-0-
		200,000
	
93.18 	For youth intervention programs under 
93.19 	Minnesota Statutes, section 299A.73. 
93.20 	This money must be used to help existing 
93.21 	programs serve unmet needs in communities 
93.22 	and to create new programs in underserved 
93.23 	areas of the state. This appropriation is added 
93.24 	to the program's base budget.

93.25	(g) Crime victim support grant
		-0-
		150,000
	
93.26 	For a grant to a private, nonprofit 
93.27 	organization dedicated to providing 
93.28 	immediate and long-term emotional support 
93.29 	and practical help for the families and friends 
93.30 	of individuals who have died by homicide, 
93.31 	suicide, or accident. This is a onetime 
93.32 	appropriation.

94.1	(h) Minneapolis Security Collaborative
		-0-
		200,000
	
94.2 	For a grant to the city of Minneapolis. This 
94.3 	grant money is to be used by the Minneapolis 
94.4 	Police Department to expand the worksite 
94.5 	system throughout the city that supports the 
94.6 	downtown security collaborative currently in 
94.7 	use in the city's first precinct. The city shall 
94.8 	give the highest priority to expanding the 
94.9 	system to neighborhoods having the highest 
94.10 	crime rate per capita. This is a onetime 
94.11 	appropriation.

94.12	(i) Additional Minneapolis peace officers
		-0-
		1,533,000
	
94.13 	For a grant to the city of Minneapolis. 
94.14 	This grant money is to be used by the 
94.15 	Minneapolis Police Department to hire 
94.16 	additional peace officers to be assigned to 
94.17 	downtown Minneapolis.
94.18 	The commissioner shall work with 
94.19 	the Bureau of Criminal Apprehension, 
94.20 	the State Patrol, the Hennepin County 
94.21 	Sheriff's Office, the Minneapolis Police 
94.22 	Department, and the Metro Transit Police, 
94.23 	in a collaborative manner to increase and 
94.24 	coordinate law enforcement efforts in 
94.25 	downtown Minneapolis. This is a onetime 
94.26 	appropriation.

94.27	(j) Financial Crimes Task Force
		177,000
		177,000
	
94.28 	This is a onetime appropriation.

94.29	Sec. 5. CORRECTIONS

94.30	Subdivision 1.Total appropriation
 		3,213,000
		10,546,000
	
95.1 	These appropriations are added to the 
95.2 	appropriations in Laws 2005, chapter 136, 
95.3 	article 1, section 13. The amounts that may 
95.4 	be spent from these appropriations for each 
95.5 	program are specified in subdivisions 2 and 
95.6 	3.

95.7	Subd.  2.Correctional institutions
 		2,668,000
		8,788,000
	
95.8 	The base for this item is $6,875,000 in fiscal 
95.9 	year 2008 and fiscal year 2009.

95.10	Subd.  3.Community services

95.11	(a) General operations
		545,000
		1,758,000
	
95.12 	The base for this item is $1,250,000 in fiscal 
95.13 	year 2008 and fiscal year 2009.

95.14	(b) Mentoring program
		-0-
		250,000
	
95.15 	For a grant to a nonprofit organization that 
95.16 	is located in the greater Twin Cities and 
95.17 	provides one-to-one mentoring relationships 
95.18 	to youth enrolled between the ages of seven 
95.19 	to 13 whose parent or other significant 
95.20 	family member is incarcerated in a county 
95.21 	workhouse, county jail, state prison, or other 
95.22 	type of correctional facility or is subject to 
95.23 	correctional supervision. The grant must be 
95.24 	used to provide children with adult mentors 
95.25 	to strengthen developmental outcomes, 
95.26 	including enhanced self-confidence and 
95.27 	esteem; improved academic performance; 
95.28 	and improved relationships with peers, 
95.29 	family, and other adults designed to prevent 
95.30 	the mentored youth from entering the 
95.31 	juvenile justice system.
96.1 	As a condition of receiving the grant, the 
96.2 	grant recipient must:
96.3 	(1) collaborate with other organizations 
96.4 	that have a demonstrated history of 
96.5 	providing services to youth and families in 
96.6 	disadvantaged situations;
96.7 	(2) implement procedures to ensure that the 
96.8 	mentors pose no safety risk to the child and 
96.9 	have the skills to participate in a mentoring 
96.10 	relationship;
96.11 	(3) provide enhanced training to mentors 
96.12 	focusing on asset building and family 
96.13 	dynamics when a parent is incarcerated; and
96.14 	(4) provide individual family plan and 
96.15 	aftercare.
96.16 	The grant recipient must submit an evaluation 
96.17 	plan to the commissioner delineating the 
96.18 	program and student outcome goals and 
96.19 	activities implemented to achieve the stated 
96.20 	outcomes. The goals must be clearly stated 
96.21 	and measurable. The grant recipient must 
96.22 	collect, analyze, and report on participation 
96.23 	and outcome data that enable the department 
96.24 	to verify that the program goals were met. 
96.25 	This is a onetime appropriation.

96.26	(c) Scott County
		-0-
		196,000
	
96.27 	To increase the Community Corrections Act 
96.28 	subsidy for the addition of Scott County. 
96.29 	The money must be distributed according 
96.30 	to the community corrections aid formula 
96.31 	contained in Minnesota Statutes, section 
96.32 	401.10.

96.33	(d) Discharge planning
		-0-
		-0-
	
97.1 	Base funding for fiscal years 2008 and 2009 
97.2 	for discharge planning for inmates with 
97.3 	mental illness is $200,000 each year.

97.4 	Sec. 6. Laws 2005, chapter 136, article 1, section 10, is amended to read:

97.5
97.6	Sec. 10.PEACE OFFICER  STANDARDS 
AND TRAINING BOARD (POST)
 		4,154,000
		4,014,000
4,214,000
	
97.7 	EXCESS AMOUNTS TRANSFERRED.
97.8 	This  appropriation is from the peace officer  
97.9 	training account in the special revenue  fund.  
97.10 	Any new receipts credited to  that account in 
97.11 	the first year in  excess of $4,154,000 must be  
97.12 	transferred and credited to the general  fund.  
97.13 	Any new receipts credited to  that account 
97.14 	in the second year in  excess of $4,014,000
97.15 	$4,214,000 must be  transferred and credited 
97.16 	to the general  fund.  
97.17 	TECHNOLOGY IMPROVEMENTS.
97.18 	$140,000 the  first year is for technology  
97.19 	improvements.  
97.20 	PEACE OFFICER TRAINING 
97.21 	REIMBURSEMENT.  $2,909,000 each the 
97.22 	first year and $3,109,000 the second year is 
97.23 	for  reimbursements to local governments for  
97.24 	peace officer training costs.  

97.25 	Sec. 7. Minnesota Statutes 2005 Supplement, section 299A.641, subdivision 3, is 
97.26 	amended to read:
97.27 		Subd. 3.Oversight council's duties. The oversight council shall develop an overall 
97.28 	strategy to ameliorate the harm caused to the public by gang and drug crime within 
97.29 	the state of Minnesota. This strategy may include the development of protocols and 
97.30 	procedures to investigate gang and drug crime and a structure for best addressing these 
97.31 	issues in a multijurisdictional manner. Additionally, the oversight council shall:
97.32 	(1) identify and recommend a candidate or candidates for statewide coordinator to 
97.33 	the commissioner of public safety;
98.1 	(2) establish multijurisdictional task forces and strike forces to combat gang and 
98.2 	drug crime, to include a metro gang strike force  and a gang strike force located in the St. 
98.3 	Cloud metropolitan area;
98.4 	(3) assist the Department of Public Safety in developing an objective grant review 
98.5 	application process that is free from conflicts of interest;
98.6 	(4) make funding recommendations to the commissioner of public safety on grants 
98.7 	to support efforts to combat gang and drug crime;
98.8 	(5) assist in developing a process to collect and share information to improve the 
98.9 	investigation and prosecution of drug offenses;
98.10 	(6) develop and approve an operational budget for the office of the statewide 
98.11 	coordinator and the oversight council; and
98.12 	(7) adopt criteria and identifying characteristics for use in determining whether 
98.13 	individuals are or may be members of gangs involved in criminal activity.

98.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

98.15 	Sec. 8. Minnesota Statutes 2005 Supplement, section 299A.78, is amended to read:
98.16 	299A.78 STATEWIDE HUMAN TRAFFICKING ASSESSMENT.
98.17 		Subdivision 1.Definitions. For purposes of sections 299A.78 to 299A.785
98.18 	299A.7955, the following definitions apply:
98.19 	(a) "Commissioner" means the commissioner of the Department of Public Safety.
98.20 	(b) "Nongovernmental organizations" means nonprofit, nongovernmental 
98.21 	organizations that provide legal, social, or other community services.
98.22 	(c) "Blackmail" has the meaning given in section 609.281, subdivision 2.
98.23 	(d) "Debt bondage" has the meaning given in section 609.281, subdivision 3.
98.24 	(e) "Forced labor or services" has the meaning given in section 609.281, subdivision 
98.25 	4.
98.26 	(f) "Labor trafficking" has the meaning given in section 609.281, subdivision 5.
98.27 	(g) "Labor trafficking victim" has the meaning given in section 609.281, subdivision 
98.28 	6.
98.29 	(h) "Sex trafficking" has the meaning given in section 609.321, subdivision 7a.
98.30 	(i) "Sex trafficking victim" has the meaning given in section 609.321, subdivision 7b.
98.31 	(j) "Trafficking" includes "labor trafficking" and "sex trafficking."
98.32 	(k) "Trafficking victim" includes "labor trafficking victim" and "sex trafficking 
98.33 	victim."
99.1 		Subd. 2.General duties. The commissioner of public safety, in cooperation with 
99.2 	local authorities, shall:
99.3 	(1) collect, share, and compile trafficking data among government agencies to assess 
99.4 	the nature and extent of trafficking in Minnesota.; and
99.5 	(2) analyze the collected data to develop a plan to address and prevent human 
99.6 	trafficking.
99.7 		Subd. 3.Outside services. As provided for in section 15.061, the commissioner of 
99.8 	public safety may contract with professional or technical services in connection with the 
99.9 	duties to be performed under section sections 299A.785, 299A.79, and 299A.795. The 
99.10 	commissioner may also contract with other outside organizations to assist with the duties 
99.11 	to be performed under section sections 299A.785, 299A.79, and 299A.795.

99.12 	EFFECTIVE DATE.  This section is effective July 1, 2006.

99.13 	Sec. 9. [299A.79] TRAFFICKING STUDY; ANALYSIS AND USE OF DATA. 
99.14 		Subdivision 1.Data analysis.   The commissioner shall analyze the data collected 
99.15 	in section 299A.785 to develop a plan to address current trafficking and prevent future 
99.16 	trafficking in this state. The commissioner may evaluate various approaches used by 
99.17 	other state and local governments to address trafficking. The plan must include, but not 
99.18 	be limited to:
99.19 	(1) ways to train agencies, organizations, and officials involved in law enforcement, 
99.20 	prosecution, and social services; 
99.21 	(2) ways to increase public awareness of trafficking; and 
99.22 	(3) procedures to enable the state government to work with nongovernmental 
99.23 	organizations to prevent trafficking. 
99.24 		Subd. 2. Training plan.  The training plan required in subdivision 1 must include: 
99.25 	(1) methods used in identifying trafficking victims, including preliminary interview 
99.26 	techniques and appropriate interrogation methods; 
99.27 	(2) methods for prosecuting traffickers; 
99.28 	(3) methods for protecting the rights of trafficking victims, taking into account 
99.29 	the need to consider human rights and special needs of women and children trafficking 
99.30 	victims; and 
99.31 	(4) methods for promoting the safety of trafficking victims.
99.32 		Subd. 3. Public awareness initiative.  The public awareness initiative required in 
99.33 	subdivision 1 must address, at a minimum, the following subjects: 
99.34 	(1) the risks of becoming a trafficking victim; 
100.1 	(2) common recruitment techniques; use of debt bondage, blackmail, forced labor 
100.2 	and services, prostitution, and other coercive tactics; and risks of assault, criminal sexual 
100.3 	conduct, exposure to sexually transmitted diseases, and psychological harm;
100.4 	(3) crime victims' rights; and 
100.5 	(4) reporting recruitment activities involved in trafficking. 
100.6 		Subd. 4. Report to legislature. The commissioner shall report the plan to the chairs 
100.7 	and ranking minority members of the senate and house committees and divisions having 
100.8 	jurisdiction over criminal justice policy and funding by December 15, 2006.

100.9 	EFFECTIVE DATE. This section is effective July 1, 2006. 

100.10 	Sec. 10. [299A.795] TRAFFICKING VICTIM ASSISTANCE.
100.11 	The commissioner may review the existing services and facilities to meet trafficking 
100.12 	victims' needs and recommend a plan that would coordinate the services including, but 
100.13 	not limited to:
100.14 	(1) medical and mental health services; 
100.15 	(2) housing; 
100.16 	(3) education and job training; 
100.17 	(4) English as a second language; 
100.18 	(5) interpreting services; 
100.19 	(6) legal and immigration services; and 
100.20 	(7) victim compensation. 

100.21 	EFFECTIVE DATE. This section is effective July 1, 2006. 

100.22 	Sec. 11. [299A.7955] HUMAN TRAFFICKING TASK FORCE.
100.23 		Subdivision 1.Creation and duties.  By September 1, 2006, the commissioner shall 
100.24 	appoint a 22-member task force on human trafficking to advise the commissioner on the 
100.25 	commissioner's duties in sections 299A.78 to 299A.795. The task force shall also serve as 
100.26 	a liaison between the commissioner and agencies and nongovernmental organizations that 
100.27 	provide services to trafficking victims. The members must receive expense reimbursement 
100.28 	as specified in section 15.059.
100.29 		Subd. 2. Membership.  To the extent possible, the human trafficking task force 
100.30 	consists of the following individuals, or their designees, who are knowledgeable in 
100.31 	trafficking, crime victims' rights, or violence protection:
100.32 	(1) a representative of the Minnesota Chiefs of Police Association; 	
100.33 	(2) a representative of the Bureau of Criminal Apprehension; 
101.1 	(3) a representative of the Minnesota Sheriffs' Association; 
101.2 	(4) a peace officer who works and resides in the metropolitan area, composed of 
101.3 	Hennepin, Ramsey, Anoka, Dakota, Scott, Washington, and Carver Counties; 
101.4 	(5) a peace officer who works and resides in the nonmetropolitan area; 
101.5 	(6) a county attorney who works in Hennepin County; 
101.6 	(7) a county attorney who works in Ramsey County; 
101.7 	(8) a representative of the attorney general's office; 
101.8 	(9) a representative of the Department of Public Safety's office of justice program;
101.9 	(10) a representative of the federal Homeland Security Department; 
101.10 	(11) a representative of the Department of Health;
101.11 	(12) the chair or executive director of the Council on Asian-Pacific Minnesotans; 	  
101.12 	(13) the chair or executive director of the Minnesota Chicano-Latino Affairs Council;  
101.13 	(14) a representative of the United States Attorney's Office; and
101.14 	(15) eight representatives from nongovernmental organizations, which may include 
101.15 	representatives of: 
101.16 	(i) the Minnesota Coalition for Battered Women; 
101.17 	(ii) the Minnesota Coalition Against Sexual Assault; 
101.18 	(iii) a statewide or local organization that provides civil legal services to women 
101.19 	and children; 
101.20 	(iv) a statewide or local organization that provides mental health services to women 
101.21 	and children; 
101.22 	 (v) a statewide or local human rights and social justice advocacy organization;
101.23 	 (vi) a statewide or local organization that provides services to victims of torture, 
101.24 	trauma, or human trafficking;
101.25 	(vii) a statewide or local organization that serves the needs of immigrants and 
101.26 	refugee women and children from diverse ethnic communities; and 
101.27 	 (viii) a statewide or local organization that provides legal services to low-income 
101.28 	immigrants.
101.29 		Subd. 3. Officers; meetings.  (a) The task force shall annually elect a chair and 
101.30 	vice-chair from among its members, and may elect other officers as necessary.  The task 
101.31 	force shall meet at least quarterly, or upon the call of its chair. The task force shall meet 
101.32 	sufficiently enough to accomplish the tasks identified in this section. 
101.33 	(b) The task force shall seek out and enlist the cooperation and assistance of 
101.34 	nongovernmental organizations and academic researchers, especially those specializing in 
101.35 	trafficking, representing diverse communities disproportionately affected by trafficking, or 
101.36 	focusing on child services and runaway services.
102.1 		Subd. 4. Expiration.  Notwithstanding section 15.059, the task force expires June 
102.2 	30, 2011, or once it has implemented and evaluated the programs and policies in sections 
102.3 	299A.78 to 299A.795 to the satisfaction of the commissioner, whichever occurs first. 

102.4 	EFFECTIVE DATE. This section is effective July 1, 2006. 

102.5 	Sec. 12. [299A.7957] TOLL-FREE HOTLINE FOR TRAFFICKING VICTIMS.
102.6 	(a) As used in this section, "trafficking victim" has the meaning given in section 
102.7 	299A.78, subdivision 1.
102.8 	(b) The commissioner of public safety shall contract with a nonprofit organization 
102.9 	that provides legal services to domestic and international trafficking victims to maintain a 
102.10 	toll-free telephone hotline for trafficking victims. 
102.11 	The hotline must be in place by January 1, 2007, and must be operated 24 hours 
102.12 	a day, 365 days a year. The hotline must offer language interpreters for languages 
102.13 	commonly spoken in Minnesota, including, but not limited to, Spanish, Vietnamese, 
102.14 	Hmong, and Somali. At a minimum, the hotline must screen trafficking victims, both 
102.15 	domestic and international, and provide appropriate referrals to attorneys and victims' 
102.16 	services organizations.

102.17 	EFFECTIVE DATE. This section is effective July 1, 2006.

102.18 	ARTICLE 14
102.19 	STATE GOVERNMENT

102.20 	Section 1. STATE GOVERNMENT APPROPRIATIONS.
 102.21 	The sums shown in the columns marked "APPROPRIATIONS" are added to the 
102.22 	appropriations in Laws 2005, chapter 156, article 1, or other law to the agencies and 
102.23 	for the purposes specified in this article.  The appropriations are from the general fund 
102.24 	or another named fund and are available for the fiscal year indicated for each purpose. 
102.25 	The figure "2007" used in this article means that the addition to the appropriation listed 
102.26 	under it is available for the fiscal year ending June 30, 2007.

102.27	SUMMARY BY FUND
	
102.28					2007
			
102.29	General
			$
	2,422,000
			
102.30	Workers' Compensation
			$
	320,000
			
102.31	TOTAL
			$
	2,742,000

								

103.1				APPROPRIATION
	
103.2				Available for the Year
	
103.3				Ending June 30, 2007

103.4	Sec. 2. LEGISLATURE 

103.5	Subdivision 1.Total Appropriation
 			$
	37,000
	
103.6 	The appropriations in this section are to the 
103.7 	Legislative Coordinating Commission for 
103.8 	the purposes in subdivisions 2 and 3.

103.9	Subd.  2.Legislative forums
 				30,000
	
103.10 	For the cost of annual forums to improve 
103.11 	legislative effectiveness. This is a onetime 
103.12 	appropriation.

103.13	Subd.  3.International Legislators' Forum
 				7,000
	
103.14 	For the International Legislators' Forum, 
103.15 	to allow Minnesota legislators to meet with 
103.16 	counterparts from South Dakota, North 
103.17 	Dakota, and Manitoba, Canada, to discuss 
103.18 	issues of mutual concern. This is a onetime 
103.19 	appropriation.

103.20	Sec. 3. FINANCE
 				325,000

103.21	Northwest Airlines bankruptcy counsel
					
103.22 	For the state's share of the cost of bankruptcy 
103.23 	counsel representing joint interests of the 
103.24 	state and the city of Duluth in the Northwest 
103.25 	Airlines bankruptcy. This is a onetime 
103.26 	appropriation.

104.1
104.2	Sec. 4. OFFICE OF ENTERPRISE 
TECHNOLOGY
 				1,900,000
	
104.3 	For comprehensive planning, 
104.4 	implementation, and administration of 
104.5 	enterprise information technology security 
104.6 	according to Minnesota Statutes, sections 
104.7 	16E.01 and 16E.03. $1,900,000 is added 
104.8 	to the appropriation base for fiscal years 
104.9 	2008 and thereafter to provide for continuing 
104.10 	administration of enterprise security.

104.11
104.12	Sec. 5. OFFICE OF ADMINISTRATIVE 
HEARINGS
 				320,000
	
104.13 	From the workers' compensation fund 
104.14 	for costs associated with the relocation 
104.15 	of offices to St. Paul. The commissioner 
104.16 	of administration shall take all steps as 
104.17 	necessary to complete the renovation of 
104.18 	the Stassen Building for these purposes by 
104.19 	January 1, 2008. Minnesota Statutes, section 
104.20 	16B.33, subdivision 3, does not apply if 
104.21 	the estimated cost of construction exceeds 
104.22 	$2,000,000. This is a onetime appropriation.
104.23 	Beginning in fiscal year 2009 and for all 
104.24 	fiscal years thereafter, the appropriation base 
104.25 	for the workers' compensation fund for the 
104.26 	Office of Administrative Hearings is reduced 
104.27 	by $297,000 to reflect savings in rent costs 
104.28 	due to the relocation of offices to St. Paul.

104.29	Sec. 6. EMPLOYEE RELATIONS

104.30	Center for Health Care Purchasing Improvement
				100,000
	
105.1 	To establish and operate the Center for 
105.2 	Health Care Purchasing Improvement.  

105.3	Sec. 7.  AMATEUR SPORTS COMMISSION
 				60,000
	
105.4 	This is a onetime appropriation.

105.5 	Sec. 8. [4.51] EXPENSES OF GOVERNOR-ELECT.
105.6 	This section applies after a state general election in which a person who is not the 
105.7 	current governor is elected to take office as the next governor. The commissioner of 
105.8 	administration must request a transfer from the general fund contingent account of an 
105.9 	amount equal to 1.5 percent of the amount appropriated for operation of the Office of the 
105.10 	Governor and Lieutenant Governor for the current fiscal year. This request is subject to 
105.11 	the review and advice of the Legislative Advisory Commission pursuant to section 3.30. 
105.12 	If the transfer is approved, the commissioner of administration must make this amount 
105.13 	available to the governor-elect before he or she takes office.   The commissioner must 
105.14 	provide office space for the governor-elect and for any employees the governor-elect hires.

105.15 	Sec. 9. [16E.21] INFORMATION AND TELECOMMUNICATIONS ACCOUNT.
105.16 		Subdivision 1.Account established; appropriation. The information and 
105.17 	telecommunications technology systems and services account is created in the special 
105.18 	revenue fund. Receipts credited to the account are appropriated to the Office of Enterprise 
105.19 	Technology for the purpose of defraying the costs of personnel and technology for 
105.20 	activities that create government efficiencies in accordance with this chapter.
105.21 		Subd. 2.Charges. Upon agreement of the participating agency, the Office 
105.22 	of Enterprise Technology may collect a charge for purchases of information and 
105.23 	telecommunications technology systems and services by state agencies and other 
105.24 	governmental entities through state contracts for purposes described in subdivision 
105.25 	1. Charges collected under this section must be credited to the information and 
105.26 	telecommunications technology systems and services account.

105.27 	Sec. 10. [43A.312] CENTER FOR HEALTH CARE PURCHASING 
105.28 	IMPROVEMENT.
105.29 		Subdivision 1.Establishment; administration. The commissioner shall establish 
105.30 	and administer the Center for Health Care Purchasing Improvement as an administrative 
105.31 	unit within the Department of Employee Relations. The Center for Health Care Purchasing 
105.32 	Improvement shall support the state in its efforts to be a more prudent and efficient 
106.1 	purchaser of quality health care services. The center shall aid the state in developing and 
106.2 	using more common strategies and approaches for health care performance measurement 
106.3 	and health care purchasing. The common strategies and approaches shall promote greater 
106.4 	transparency of health care costs and quality, and greater accountability for health 
106.5 	care results and improvement. The center shall also identify barriers to more efficient, 
106.6 	effective, quality health care and options for overcoming the barriers.
106.7 		Subd. 2.Staffing; duties; scope. (a) The commissioner may appoint a director, and 
106.8 	up to three additional senior-level staff or codirectors, and other staff as needed who are 
106.9 	under the direction of the commissioner. The staff of the center are in the unclassified 
106.10 	service.
106.11 	(b) With the authorization of the commissioner of employee relations, and in 
106.12 	consultation or interagency agreement with the appropriate commissioners of state 
106.13 	agencies, the director, or codirectors, may:
106.14 	(1) initiate projects to develop plan designs for state health care purchasing;
106.15 	(2) require reports or surveys to evaluate the performance of current health care 
106.16 	purchasing strategies;
106.17 	(3) calculate fiscal impacts, including net savings and return on investment, of health 
106.18 	care purchasing strategies and initiatives;
106.19 	(4) conduct policy audits of state programs to measure conformity to state statute or 
106.20 	other purchasing initiatives or objectives;
106.21 	(5) support the Administrative Uniformity Committee under section 62J.50 and 
106.22 	other relevant groups or activities to advance agreement on health care administrative 
106.23 	process streamlining;
106.24 	(6) consult with the Health Economics Unit of the Department of Health regarding 
106.25 	reports and assessments of the health care marketplace;
106.26 	(7) consult with the departments of Health and Commerce regarding health care 
106.27 	regulatory issues and legislative initiatives;
106.28 	(8) work with appropriate Department of Human Services staff and the Centers for 
106.29 	Medicare and Medicaid Services to address federal requirements and conformity issues 
106.30 	for health care purchasing;
106.31 	(9) assist the Minnesota Comprehensive Health Association in health care 
106.32 	purchasing strategies;
106.33 	(10) convene medical directors of agencies engaged in health care purchasing for 
106.34 	advice, collaboration, and exploring possible synergies;
107.1 	(11) contact and participate with other relevant health care task forces, study 
107.2 	activities, and similar efforts with regard to health care performance measurement and 
107.3 	performance-based purchasing; and
107.4 	(12) assist in seeking external funding through appropriate grants or other funding 
107.5 	opportunities and may administer grants and externally funded projects.
107.6 		Subd. 3.Report. The commissioner must report annually to the legislature and the 
107.7 	governor on the operations, activities, and impacts of the center. The report must be 
107.8 	posted on the Department of Employee Relations Web site and must be available to the 
107.9 	public. The report must include a description of the state's efforts to develop and use more 
107.10 	common strategies for health care performance measurement and health care purchasing. 
107.11 	The report must also include an assessment of the impacts of these efforts, especially in 
107.12 	promoting greater transparency of health care costs and quality, and greater accountability 
107.13 	for health care results and improvement.

107.14 	Sec. 11. Laws 1998, chapter 404, section 15, subdivision  2, as amended by Laws 
107.15 	2005, chapter 20, article 1, section 40,  as amended by Laws 2005, chapter 156, article 2, 
107.16 	section 43, is amended to read:

107.17	Subd. 2.National Sports Center
 				4,800,000 
	
107.18 	$1,700,000 is to purchase and develop  land 
107.19 	adjacent to the National Sports  Center in 
107.20 	Blaine for use as athletic  fields.  
107.21 	$3,100,000 is to develop the National  
107.22 	Children's Golf Course.  The primary  
107.23 	purpose of the National Children's Golf  
107.24 	Course is to serve youth of 18 years  and 
107.25 	younger.  Market rates must be  charged for 
107.26 	adult golf.  
107.27 	Notwithstanding Minnesota Statutes, section 
107.28 	16B.24, subdivision 5,  the Minnesota 
107.29 	Amateur Sports Commission  may lease 
107.30 	up to 20 percent of the area  of the land 
107.31 	purchased with money from  the general 
107.32 	fund appropriations in this  subdivision for 
107.33 	a term of up to 30  years, plus two renewals 
107.34 	for a term of up to 30 years each, to one or 
108.1 	more governmental or  private entities for 
108.2 	any use by the  lessee, whether public or 
108.3 	private, so  long as the use provides some 
108.4 	benefit  to amateur sports.  The commission 
108.5 	must  submit proposed leases for the land  
108.6 	described in this subdivision to the  chairs of 
108.7 	the legislative committees  with jurisdiction 
108.8 	over state government  policy and finance for 
108.9 	review at least  30 days before the leases may 
108.10 	be  entered into by the commission.  Up to  
108.11 	$300,000 of lease payments received by  the 
108.12 	commission  each fiscal year is  appropriated 
108.13 	to the commission for the  purposes specified 
108.14 	in Minnesota  Statutes, chapter 240A.  The 
108.15 	land  purchased from the general fund  
108.16 	appropriations may be used for any  amateur 
108.17 	sport.  

108.18 	Sec. 12. LABOR AGREEMENTS AND COMPENSATION PLANS.
 108.19 		Subdivision 1. American Federation of State, County and Municipal Employees. 
 108.20 	The labor agreement between the state of Minnesota and the American Federation of State, 
108.21 	County and Municipal Employees, Council 5, approved by the Legislative Coordinating 
108.22 	Commission Subcommittee on Employee Relations on September 14, 2005, is ratified. 
108.23 		Subd. 2. Minnesota Association of Professional Employees.  The labor agreement 
108.24 	between the state of Minnesota and the Minnesota Association of Professional Employees, 
108.25 	approved by the Legislative Coordinating Commission Subcommittee on Employee 
108.26 	Relations on September 14, 2005, is ratified. 
108.27 		Subd. 3. Middle Management Association.  The labor agreement between the state 
108.28 	of Minnesota and the Middle Management Association, approved by the Legislative 
108.29 	Coordinating Commission Subcommittee on Employee Relations on November 7, 2005, 
108.30 	is ratified. 
108.31 		Subd. 4. Minnesota state college faculty.  The labor agreement between the 
108.32 	state of Minnesota and the Minnesota state college faculty, approved by the Legislative 
108.33 	Coordinating Commission Subcommittee on Employee Relations on November 7, 2005, 
108.34 	is ratified. 
109.1 		Subd. 5.American Federation of State, County and Municipal Employees.
 109.2 	The labor agreement between the state of Minnesota and the American Federation of 
109.3 	State, County and Municipal Employees, Council 5, Unit 8, approved by the Legislative 
109.4 	Coordinating Commission Subcommittee on Employee Relations on November 7, 2005, 
109.5 	is ratified.
109.6 		Subd. 6.Managerial plan. The managerial plan, approved by the Legislative 
109.7 	Coordinating Commission Subcommittee on Employee Relations on November 7, 2005, 
109.8 	is ratified.
109.9 		Subd. 7.Commissioner's plan. The commissioner of employee relations' plan 
109.10 	for unrepresented employees, approved by the Legislative Coordinating Commission 
109.11 	Subcommittee on Employee Relations on November 7, 2005, is ratified.
109.12 		Subd. 8.Minnesota Government Engineers Council. The labor agreement 
109.13 	between the state of Minnesota and the Minnesota Government Engineers Council, 
109.14 	approved by the Legislative Coordinating Commission Subcommittee on Employee 
109.15 	Relations on January 10, 2006, is ratified. 
109.16 		Subd. 9.State Residential Schools Education Association. The labor agreement 
109.17 	between the state of Minnesota and the State Residential Schools Education Association, 
109.18 	approved by the Legislative Coordinating Commission Subcommittee on Employee 
109.19 	Relations on January 10, 2006, is ratified. 
109.20 		Subd. 10.Interfaculty Organization. The labor agreement between the state of 
109.21 	Minnesota and the Interfaculty Organization, approved by the Legislative Coordinating 
109.22 	Commission Subcommittee on Employee Relations on January 10, 2006, is ratified. 
109.23 		Subd. 11.Minnesota State University Association of Administrative and Service 
109.24 	Faculty. The labor agreement between the state of Minnesota and the Minnesota State 
109.25 	University Association of Administrative and Service Faculty, approved by the Legislative 
109.26 	Coordinating Commission Subcommittee on Employee Relations on January 10, 2006, 
109.27 	is ratified. 
109.28 		Subd. 12.Office of Higher Education. The compensation plan for unrepresented 
109.29 	employees of the Office of Higher Education, approved by the Legislative Coordinating 
109.30 	Commission Subcommittee on Employee Relations on January 10, 2006, is ratified. 
109.31 		Subd. 13. MnSCU Administrators.  The personnel plan for Minnesota State 
109.32 	Colleges and Universities administrators, approved by the Legislative Coordinating 
109.33 	Commission Subcommittee on Employee Relations on January 10, 2006, is ratified. 
109.34 		Subd. 14. State Board of Investment.  The salary administration plan for the 
109.35 	Minnesota State Board of Investment, approved by the Legislative Coordinating 
109.36 	Commission Subcommittee on Employee Relations on March 1, 2006, is ratified. 
110.1 		Subd. 15. Managerial plan amendment.  The amendment to the managerial plan, 
110.2 	approved by the Legislative Coordinating Commission Subcommittee on Employee 
110.3 	Relations on March 1, 2006, is ratified. 
110.4 		Subd. 16. Commissioner's plan amendment.  The amendment to the 
110.5 	commissioner's plan, approved by the Legislative Coordinating Commission 
110.6 	Subcommittee on Employee Relations on March 1, 2006, is ratified.

110.7 	EFFECTIVE DATE. This section is effective the day following final enactment. 

110.8 	Sec. 13. TRANSFER.
 110.9 	On June 30, 2006, the commissioner of finance shall transfer the balances in the 
110.10 	tobacco use prevention and local public health endowment fund and the medical education 
110.11 	endowment fund to the general fund. These balances result from investment income 
110.12 	credited to the funds after the transfer of balances on July 1, 2003. The amount transferred 
110.13 	under this section is estimated to be $2,933,000.

110.14 	Sec. 14. REVISOR'S INSTRUCTION.
 110.15 	The revisor of statutes shall correct internal cross-references to sections that 
110.16 	are affected by section 15. The revisor may make changes necessary to correct the 
110.17 	punctuation, grammar, or structure of the remaining text and preserve its meaning.

110.18 	Sec. 15.  REPEALER.
 110.19 	Minnesota Statutes 2004, sections 62J.694; and 144.395, are repealed.

110.20 	ARTICLE 15
110.21 	VETERANS AFFAIRS

110.22	Section 1. VETERANS AFFAIRS APPROPRIATIONS.
 	
110.23 	The sums shown are appropriated from the general fund, or another named fund, 
110.24 	to be available for the fiscal years indicated for each purpose. The figures "2006" and 
110.25 	"2007" used in this article mean that the appropriation or appropriations listed under them 
110.26 	are available for the fiscal year ending June 30, 2006, or June 30, 2007, respectively. 
110.27 	Appropriations in this article for the fiscal year ending June 30, 2006, are effective the 
110.28 	day following final enactment.

110.29				APPROPRIATIONS
	
110.30				Available for the Year
	
110.31				Ending June 30
	
110.32					2006
		2007

111.1	Sec. 2. VETERANS AFFAIRS

111.2	Subdivision 1.Total Appropriation
 	$
	250,000
	$
	3,230,000
	
111.3 	The appropriations in this section are for the 
111.4 	purposes in subdivisions 2 to 7.

111.5	Subd. 2.State soldiers' assistance fund
 		-0-
		2,000,000
	
111.6 	To be deposited in the state soldiers' 
111.7 	assistance fund established in Minnesota 
111.8 	Statutes, section 197.03. The appropriations 
111.9 	in this subdivision are in addition to other 
111.10 	appropriations made to the commissioner of 
111.11 	veterans affairs.

111.12	Subd.  3.Web site development
 		-0-
		100,000
	
111.13 	To create a centralized Web site to contain 
111.14 	information on all state, federal, local, and 
111.15 	private agencies and organizations that 
111.16 	provide goods or services to veterans or their 
111.17 	families.

111.18	Subd.  4.Grants to counties
 		-0-
		200,000
	
111.19 	For grants to counties under the terms of this 
111.20 	subdivision. The commissioner shall issue a 
111.21 	request for proposals for grants to enhance 
111.22 	the benefits, programs, and services provided 
111.23 	to veterans. The request must specify that 
111.24 	priority will be given to proposals that meet 
111.25 	the programmatic goals established by the 
111.26 	commissioner, including proposals that:
111.27 	(1) will provide the most effective outreach 
111.28 	to veterans;
111.29 	(2) reintegrate combat veterans into society;
112.1 	(3) collaborate with other social service 
112.2 	agencies, educational institutions, and other 
112.3 	relevant community resources;
112.4 	(4) reduce homelessness among veterans; 
112.5 	and
112.6 	(5) provide measurable outcomes.
112.7 	The commissioner may provide incentives to 
112.8 	encourage regional collaboration for service 
112.9 	delivery.
112.10 	The grants may be for a term of up to two 
112.11 	years. The commissioner shall ensure that 
112.12 	grants are made throughout all regions of 
112.13 	the state and shall develop a description of 
112.14 	best practices for the use of these grants. A 
112.15 	county may not reduce its veterans service 
112.16 	office budget by any amount received as a 
112.17 	grant under this subdivision. Grants made 
112.18 	under this subdivision are in addition to 
112.19 	and not subject to the requirements for 
112.20 	grants made under Minnesota Statutes, 
112.21 	section 197.608. The Vinland Center and the 
112.22 	Minnesota Assistance Council for Veterans 
112.23 	may apply for grants under this subdivision 
112.24 	in fiscal year 2007. This appropriation must 
112.25 	be included in the appropriation base through 
112.26 	fiscal year 2009.

112.27
112.28	Subd.  5.Higher education veterans 
assistance offices
 		-0-
		600,000
	
112.29 	For the higher education veterans assistance 
112.30 	program in section 3. This appropriation 
112.31 	must be included in the appropriation base 
112.32 	through fiscal year 2011.

112.33	Subd.  6.Outreach and assistance
 		250,000
		250,000
	
113.1 	For an outreach and assistance initiative for 
113.2 	underserved veterans.

113.3	Subd.  7.Veterans organizations
 		-0-
		80,000
	
113.4 	For veterans' services provided by Veterans 
113.5 	of Foreign Wars, the Military Order of the 
113.6 	Purple Heart, Disabled American Veterans, 
113.7 	and the Vietnam Veterans of America. This 
113.8 	is a onetime appropriation.

113.9 	Sec. 3. [197.585] HIGHER EDUCATION VETERANS ASSISTANCE 
113.10 	PROGRAM.
113.11 		Subdivision 1.Assistance provided. The commissioner of veterans affairs shall 
113.12 	provide central liaison staff and campus veterans assistance officers to serve the needs 
113.13 	of students who are veterans at higher education institutions in Minnesota. Methods of 
113.14 	assistance may include, but are not limited to, work-study positions for veterans, and 
113.15 	providing information and assistance regarding the availability of state, federal, local, 
113.16 	and private resources.
113.17 		Subd. 2.Steering committee. The commissioner of veterans affairs shall chair a 
113.18 	higher education veterans assistance program steering committee composed of:
113.19 	(1) the adjutant general or the adjutant general's designee;
113.20 	(2) a representative of Minnesota State Colleges and Universities, designated by 
113.21 	the chancellor;
113.22 	(3) a representative of the University of Minnesota, appointed by the president of 
113.23 	the university;
113.24 	(4) a representative of private colleges and universities in Minnesota, appointed by 
113.25 	the governor;
113.26 	(5) a representative of the Office of Higher Education, appointed by the executive 
113.27 	director; 
113.28 	(6) a representative of county veterans service offices, appointed by the 
113.29 	commissioner of veterans affairs; and
113.30 	(7) a representative of the Department of Employment and Economic Development, 
113.31 	appointed by the commissioner of that department.
113.32 	The steering committee shall advise the commissioner of veterans affairs regarding the 
113.33 	allocation of appropriations for the purposes of this section and shall develop a long-range 
114.1 	plan to serve the needs of students at higher education institutions in Minnesota who are 
114.2 	veterans.
114.3 		Subd. 3.Office space provided. Each campus of the University of Minnesota and 
114.4 	each institution within the Minnesota State Colleges and Universities system shall provide 
114.5 	adequate space for a veterans assistance office to be administered by the commissioner 
114.6 	of veterans affairs, and each private college and university in Minnesota is encouraged 
114.7 	to provide adequate space for a veterans assistance office to be administered by the 
114.8 	commissioner of veterans affairs. The veterans assistance office must provide information 
114.9 	and assistance to veterans who are students or family members of students at the school 
114.10 	regarding the availability of state, federal, local, and private resources.
114.11 		Subd. 4.Report. Beginning January 15, 2007, and each year thereafter, the 
114.12 	steering committee established in subdivision 2 shall report to the chairs of the legislative 
114.13 	committees with jurisdiction over veterans affairs policy and finance and higher education 
114.14 	policy and finance regarding the implementation and effectiveness of the program 
114.15 	established in this section.
114.16 		Subd. 5.Expiration. This section expires at the end of the first fiscal year in which 
114.17 	the number of veterans enrolled in Minnesota public institutions of higher education is 
114.18 	fewer than 4,000, but no later than June 30, 2011.

114.19 	ARTICLE 16
114.20 	HEALTH AND HUMAN SERVICES MISCELLANEOUS PROVISIONS

114.21 	Section 1. Minnesota Statutes 2004, section 43A.17, subdivision 4, is amended to read:
114.22 		Subd. 4.Exceptions. (a) The commissioner may without regard to subdivision 1 
114.23 	establish special salary rates and plans of compensation designed to attract and retain 
114.24 	exceptionally qualified doctors of medicine and doctors of dental surgery. These rates 
114.25 	and plans shall be included in the commissioner's plan. In establishing salary rates and 
114.26 	eligibility for nomination for payment at special rates, the commissioner shall consider the 
114.27 	standards of eligibility established by national medical specialty boards where appropriate. 
114.28 	The incumbents assigned to these special ranges shall be excluded from the collective 
114.29 	bargaining process.
114.30 	(b) The commissioner may without regard to subdivision 1, but subject to collective 
114.31 	bargaining agreements or compensation plans, establish special salary rates designed to 
114.32 	attract and retain exceptionally qualified employees in the following positions:
114.33 	(1) information systems staff;
114.34 	(2) actuaries in the Departments of Health, Human Services, and Commerce; and
114.35 	(3) epidemiologists in the Department of Health.

115.1 	Sec. 2. Minnesota Statutes 2005 Supplement, section 144.1476, subdivision 4, is 
115.2 	amended to read:
115.3 		Subd. 4.Allocation of grants. (a) The commissioner shall establish a deadline for 
115.4 	receiving applications and must make a final decision on the funding of each application 
115.5 	within 60 days of the deadline. An applicant must apply no later than March 1 of each 
115.6 	fiscal year for grants awarded for that fiscal year.
115.7 	(b) Any grant awarded must not exceed $50,000 a year and may not exceed a 
115.8 	one-year term. Notwithstanding any law to the contrary, funds awarded to grantees in a 
115.9 	grant agreement do not lapse until expended by the grantee.
115.10 	(c) Applicants may apply to the program each year they are eligible.
115.11 	(d) Project grants may not be used to retire debt incurred with respect to any capital 
115.12 	expenditure made prior to the date on which the project is initiated.

115.13 	Sec. 3. [144.366] INTERCONNECTED ELECTRONIC HEALTH RECORD 
115.14 	GRANTS.
115.15 		Subdivision 1.Definitions. The following definitions are used for the purposes 
115.16 	of this section.
115.17 	(a) "Eligible community e-health collaborative" means an existing or newly 
115.18 	established collaborative to support the adoption and use of interoperable electronic 
115.19 	health records. A collaborative must consist of at least three or more eligible health 
115.20 	care entities in at least two of the categories listed in paragraph (b) and have a focus on 
115.21 	interconnecting the members of the collaborative for secure and interoperable exchange of 
115.22 	health care information.
115.23 	(b) "Eligible health care entity" means one of the following:
115.24 	(1) community clinics, as defined under section 145.9268; 
115.25 	(2) hospitals eligible for rural hospital capital improvement grants, as defined 
115.26 	in section 144.148;
115.27 	(3) physician clinics located in a community with a population of less than 50,000 
115.28 	according to United States Census Bureau statistics and outside the seven-county 
115.29 	metropolitan area; 
115.30 	(4) nursing facilities licensed under sections 144A.01 to 144A.27; 
115.31 	(5) community health boards as established under chapter 145A; 
115.32 	(6) nonprofit entities with a purpose to provide health information exchange 
115.33 	coordination governed by a representative, multi-stakeholder board of directors; and
116.1 	(7) other providers of health or health care services approved by the commissioner 
116.2 	for which interoperable electronic health record capability would improve quality of 
116.3 	care, patient safety, or community health.
116.4 		Subd. 2.Grants authorized. The commissioner of health shall award grants to 
116.5 	eligible community e-health collaborative projects to improve the implementation and 
116.6 	use of interoperable electronic health records including but not limited to the following 
116.7 	projects:
116.8 	(1) collaborative efforts to host and support fully functional interoperable electronic 
116.9 	health records in multiple care settings; 
116.10 	(2) electronic medication history and electronic patient registration information; 
116.11 	(3) electronic personal health records for persons with chronic diseases and for 
116.12 	prevention services; 
116.13 	(4) rural and underserved community models for electronic prescribing; and
116.14 	(5) enabling local public health systems to rapidly and electronically exchange 
116.15 	information needed to participate in community e-health collaboratives or for public 
116.16 	health emergency preparedness and response.
116.17 	Grant funds may not be used for construction of health care or other buildings or 
116.18 	facilities.
116.19 		Subd. 3.Allocation of grants. (a) To receive a grant under this section, an eligible 
116.20 	community e-health collaborative must submit an application to the commissioner of 
116.21 	health by the deadline established by the commissioner. A grant may be awarded upon the 
116.22 	signing of a grant contract. In awarding grants, the commissioner shall give preference to 
116.23 	projects benefiting providers located in rural and underserved areas of Minnesota which 
116.24 	the commissioner has determined have an unmet need for the development and funding 
116.25 	of electronic health records. Applicants may apply for and the commissioner may award 
116.26 	grants for one-year, two-year, or three-year periods.
116.27 	(b) An application must be on a form and contain information as specified by the 
116.28 	commissioner but at a minimum must contain:
116.29 	(1) a description of the purpose or project for which grant funds will be used; 
116.30 	(2) a description of the problem or problems the grant funds will be used to address, 
116.31 	including an assessment likelihood of the project occurring absent grant funding; 
116.32 	(3) a description of achievable objectives, a workplan, budget, budget narrative, a 
116.33 	project communications plan, a timeline for implementation and completion of processes 
116.34 	or projects enabled by the grant, and an assessment of privacy and security issues and a 
116.35 	proposed approach to address these issues;
117.1 	(4) a description of the health care entities and other groups participating in the 
117.2 	project, including identification of the lead entity responsible for applying for and 
117.3 	receiving grant funds; 
117.4 	(5) a plan for how patients and consumers will be involved in development of 
117.5 	policies and procedures related to the access to and interchange of information; 
117.6 	(6) evidence of consensus and commitment among the health care entities and others 
117.7 	who developed the proposal and are responsible for its implementation; and
117.8 	(7) a plan for documenting and evaluating results of the grant.
117.9 	(c) The commissioner shall review each application to determine whether the 
117.10 	application is complete and whether the applicant and the project are eligible for a 
117.11 	grant. In evaluating applications, the commissioner shall take into consideration factors, 
117.12 	including but not limited to, the following:
117.13 	(1) the degree to which the proposal interconnects the various providers of care 
117.14 	in the applicant's geographic community; 
117.15 	(2) the degree to which the project provides for the interoperability of electronic 
117.16 	health records or related health information technology between the members of the 
117.17 	collaborative, and presence and scope of a description of how the project intends to 
117.18 	interconnect with other providers not part of the project into the future;
117.19 	(3) the degree to which the project addresses current unmet needs pertaining 
117.20 	to interoperable electronic health records in a geographic area of Minnesota and the 
117.21 	likelihood that the needs would not be met absent grant funds; 
117.22 	(4) the applicant's thoroughness and clarity in describing the project, how the project 
117.23 	will improve patient safety, quality of care, and consumer empowerment, and the role of 
117.24 	the various collaborative members;
117.25 	(5) the recommendations of the Health Information and Technology Infrastructure 
117.26 	Advisory Committee; and
117.27 	(6) other factors that the commissioner deems relevant.
117.28 	(d) Grant funds shall be awarded on a three-to-one match basis. Applicants shall be 
117.29 	required to provide one dollar in the form of cash or in-kind staff or services for each three 
117.30 	dollars provided under the grant program.
117.31 	(e) Grants shall not exceed $900,000 per grant. The commissioner has discretion 
117.32 	over the size and number of grants awarded.
117.33 		Subd. 4.Evaluation and report. The commissioner of health shall evaluate the 
117.34 	overall effectiveness of the grant program. The commissioner shall collect progress 
117.35 	and expenditure reports to evaluate the grant program from the eligible community 
117.36 	collaboratives receiving grants. 

118.1 	Sec. 4. [245.4835] COUNTY MAINTENANCE OF EFFORT.
118.2 		Subdivision 1.Required expenditures. Counties must maintain a level of 
118.3 	expenditures for mental health services under sections 245.461 to 245.484 and 245.487 to 
118.4 	245.4887 so that each year's county expenditures are at least equal to that county's average 
118.5 	expenditures for those services for calendar years 2004 and 2005. The commissioner will 
118.6 	adjust each county's base level for minimum expenditures in each year by the amount of 
118.7 	any increase or decrease in that county's state grants or other noncounty revenues for 
118.8 	mental health services under sections 245.461 to 245.484 and 245.487 to 245.4887.
118.9 		Subd. 2.Failure to maintain expenditures. If a county does not comply with 
118.10 	subdivision 1, the commissioner shall require the county to develop a corrective action plan 
118.11 	according to a format and timeline established by the commissioner. If the commissioner 
118.12 	determines that a county has not developed an acceptable corrective action plan within 
118.13 	the required timeline, or that the county is not in compliance with an approved corrective 
118.14 	action plan, the protections provided to that county under section 245.485 do not apply.

118.15 	Sec. 5. Minnesota Statutes 2004, section 256.01, is amended by adding a subdivision 
118.16 	to read:
118.17 		Subd. 2b.Performance payments. The commissioner shall develop and implement 
118.18 	a pay-for-performance system to provide performance payments to medical groups that 
118.19 	demonstrate optimum care in serving individuals with chronic diseases who are enrolled 
118.20 	in health care programs administered by the commissioner under chapters 256B, 256D, 
118.21 	and 256L.

118.22 	Sec. 6. Minnesota Statutes 2004, section 256B.0625, subdivision 20, is amended to 
118.23 	read:
118.24 		Subd. 20.Mental health case management. (a) To the extent authorized by rule 
118.25 	of the state agency, medical assistance covers case management services to persons with 
118.26 	serious and persistent mental illness and children with severe emotional disturbance. 
118.27 	Services provided under this section must meet the relevant standards in sections  245.461
118.28 	to  245.4887, the Comprehensive Adult and Children's Mental Health Acts, Minnesota 
118.29 	Rules, parts 9520.0900 to 9520.0926, and 9505.0322, excluding subpart 10. 
118.30 	(b) Entities meeting program standards set out in rules governing family community 
118.31 	support services as defined in section  245.4871, subdivision 17, are eligible for medical 
118.32 	assistance reimbursement for case management services for children with severe 
118.33 	emotional disturbance when these services meet the program standards in Minnesota 
118.34 	Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10. 
119.1 	(c) Medical assistance and MinnesotaCare payment for mental health case 
119.2 	management shall be made on a monthly basis. In order to receive payment for an eligible 
119.3 	child, the provider must document at least a face-to-face contact with the child, the child's 
119.4 	parents, or the child's legal representative. To receive payment for an eligible adult, the 
119.5 	provider must document:
119.6 	(1) at least a face-to-face contact with the adult or the adult's legal representative; or
119.7 	(2) at least a telephone contact with the adult or the adult's legal representative and 
119.8 	document a face-to-face contact with the adult or the adult's legal representative within 
119.9 	the preceding two months.
119.10 	(d) Payment for mental health case management provided by county or state staff 
119.11 	shall be based on the monthly rate methodology under section  256B.094, subdivision 6, 
119.12 	paragraph (b), with separate rates calculated for child welfare and mental health, and 
119.13 	within mental health, separate rates for children and adults. 
119.14 	(e) Payment for mental health case management provided by Indian health services 
119.15 	or by agencies operated by Indian tribes may be made according to this section or other 
119.16 	relevant federally approved rate setting methodology.
119.17 	(f) Payment for mental health case management provided by vendors who contract 
119.18 	with a county or Indian tribe shall be based on a monthly rate negotiated by the host county 
119.19 	or tribe. The negotiated rate must not exceed the rate charged by the vendor for the same 
119.20 	service to other payers. If the service is provided by a team of contracted vendors, the 
119.21 	county or tribe may negotiate a team rate with a vendor who is a member of the team. The 
119.22 	team shall determine how to distribute the rate among its members. No reimbursement 
119.23 	received by contracted vendors shall be returned to the county or tribe, except to reimburse 
119.24 	the county or tribe for advance funding provided by the county or tribe to the vendor.
119.25 	(g) If the service is provided by a team which includes contracted vendors, tribal 
119.26 	staff, and county or state staff, the costs for county or state staff participation in the team 
119.27 	shall be included in the rate for county-provided services. In this case, the contracted 
119.28 	vendor, the tribal agency, and the county may each receive separate payment for services 
119.29 	provided by each entity in the same month. In order to prevent duplication of services, 
119.30 	each entity must document, in the recipient's file, the need for team case management and 
119.31 	a description of the roles of the team members.
119.32 	(h) The commissioner shall calculate the nonfederal share of actual medical 
119.33 	assistance and general assistance medical care payments for each county, based on the 
119.34 	higher of calendar year 1995 or 1996, by service date, project that amount forward to 1999, 
119.35 	and transfer one-half of the result from medical assistance and general assistance medical 
119.36 	care to each county's mental health grants under section  256E.12 for calendar year 1999. 
120.1 	The annualized minimum amount added to each county's mental health grant shall be 
120.2 	$3,000 per year for children and $5,000 per year for adults. The commissioner may reduce 
120.3 	the statewide growth factor in order to fund these minimums. The annualized total amount 
120.4 	transferred shall become part of the base for future mental health grants for each county. 
120.5 	(i) Any net increase in revenue to the county or tribe as a result of the change in this 
120.6 	section must be used to provide expanded mental health services as defined in sections  
120.7 	245.461 to  245.4887, the Comprehensive Adult and Children's Mental Health Acts, 
120.8 	excluding inpatient and residential treatment. For adults, increased revenue may also be 
120.9 	used for services and consumer supports which are part of adult mental health projects 
120.10 	approved under Laws 1997, chapter 203, article 7, section 25. For children, increased 
120.11 	revenue may also be used for respite care and nonresidential individualized rehabilitation 
120.12 	services as defined in section  245.492, subdivisions 17 and 23. "Increased revenue" has 
120.13 	the meaning given in Minnesota Rules, part 9520.0903, subpart 3. 
120.14 	(j) (i) Notwithstanding section  256B.19, subdivision 1, the nonfederal share of 
120.15 	costs for mental health case management shall be provided by the recipient's county of 
120.16 	responsibility, as defined in sections  256G.01 to  256G.12, from sources other than federal 
120.17 	funds or funds used to match other federal funds. If the service is provided by a tribal 
120.18 	agency, the nonfederal share, if any, shall be provided by the recipient's tribe. 
120.19 	(k) (j) The commissioner may suspend, reduce, or terminate the reimbursement to a 
120.20 	provider that does not meet the reporting or other requirements of this section. The county 
120.21 	of responsibility, as defined in sections  256G.01 to  256G.12, or, if applicable, the tribal 
120.22 	agency, is responsible for any federal disallowances. The county or tribe may share this 
120.23 	responsibility with its contracted vendors. 
120.24 	(l) (k) The commissioner shall set aside a portion of the federal funds earned under 
120.25 	this section to repay the special revenue maximization account under section  256.01, 
120.26 	subdivision 2, clause (15). The repayment is limited to: 
120.27 	(1) the costs of developing and implementing this section; and
120.28 	(2) programming the information systems.
120.29 	(m) (l) Payments to counties and tribal agencies for case management expenditures 
120.30 	under this section shall only be made from federal earnings from services provided 
120.31 	under this section. Payments to county-contracted vendors shall include both the federal 
120.32 	earnings and the county share.
120.33 	(n) (m) Notwithstanding section  256B.041, county payments for the cost of mental 
120.34 	health case management services provided by county or state staff shall not be made 
120.35 	to the commissioner of finance. For the purposes of mental health case management 
120.36 	services provided by county or state staff under this section, the centralized disbursement 
121.1 	of payments to counties under section  256B.041 consists only of federal earnings from 
121.2 	services provided under this section. 
121.3 	(o) (n) Case management services under this subdivision do not include therapy, 
121.4 	treatment, legal, or outreach services.
121.5 	(p) (o) If the recipient is a resident of a nursing facility, intermediate care facility, 
121.6 	or hospital, and the recipient's institutional care is paid by medical assistance, payment 
121.7 	for case management services under this subdivision is limited to the last 180 days of 
121.8 	the recipient's residency in that facility and may not exceed more than six months in a 
121.9 	calendar year.
121.10 	(q) (p) Payment for case management services under this subdivision shall not 
121.11 	duplicate payments made under other program authorities for the same purpose.
121.12 	(r) (q) By July 1, 2000, the commissioner shall evaluate the effectiveness of the 
121.13 	changes required by this section, including changes in number of persons receiving 
121.14 	mental health case management, changes in hours of service per person, and changes in 
121.15 	caseload size.
121.16 	(s) (r) For each calendar year beginning with the calendar year 2001, the annualized 
121.17 	amount of state funds for each county determined under paragraph (h) shall be adjusted by 
121.18 	the county's percentage change in the average number of clients per month who received 
121.19 	case management under this section during the fiscal year that ended six months prior to 
121.20 	the calendar year in question, in comparison to the prior fiscal year.
121.21 	(t) (s) For counties receiving the minimum allocation of $3,000 or $5,000 described 
121.22 	in paragraph (h), the adjustment in paragraph (s) shall be determined so that the county 
121.23 	receives the higher of the following amounts:
121.24 	(1) a continuation of the minimum allocation in paragraph (h); or
121.25 	(2) an amount based on that county's average number of clients per month who 
121.26 	received case management under this section during the fiscal year that ended six months 
121.27 	prior to the calendar year in question, times the average statewide grant per person per 
121.28 	month for counties not receiving the minimum allocation.
121.29 	(u) (t) The adjustments in paragraphs (s) and (t) shall be calculated separately for 
121.30 	children and adults.

121.31 	Sec. 7. Minnesota Statutes 2004, section 256B.0945, subdivision 1, is amended to read:
121.32 		Subdivision 1.Provider qualifications. Counties must arrange to provide 
121.33 	residential services for children with severe emotional disturbance according to sections  
121.34 	245.4882,  245.4885, and this section. Services must be provided by a facility that is 
121.35 	licensed according to section  245.4882 and administrative rules promulgated thereunder, 
122.1 	and under contract with the county. Facilities providing services under subdivision 2, 
122.2 	paragraph (a), must be accredited as a psychiatric facility by the Joint Commission 
122.3 	on Accreditation of Healthcare Organizations, the Commission on Accreditation of 
122.4 	Rehabilitation Facilities, or the Council on Accreditation. Accreditation is not required for 
122.5 	facilities providing services under subdivision 2, paragraph (b).

122.6 	Sec. 8. Minnesota Statutes 2005 Supplement, section 256B.0946, subdivision 1, 
122.7 	is amended to read:
122.8 		Subdivision 1.Covered service. (a) Effective July 1, 2006, and subject to federal 
122.9 	approval, medical assistance covers medically necessary services described under 
122.10 	paragraph (b) that are provided by a provider entity eligible under subdivision 3 to a client 
122.11 	eligible under subdivision 2 who is placed in a treatment foster home licensed under 
122.12 	Minnesota Rules, parts 2960.3000 to 2960.3340.
122.13 	(b) Services to children with severe emotional disturbance residing in treatment 
122.14 	foster care settings must meet the relevant standards for mental health services under 
122.15 	sections 245.487 to 245.4887. In addition, specific service components reimbursed by 
122.16 	medical assistance must meet the following standards:
122.17 	(1) case management service component must meet the standards in Minnesota 
122.18 	Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10;
122.19 	(2) psychotherapy, crisis assistance, and skills training components must meet the 
122.20 	standards for children's therapeutic services and supports in section 256B.0943; and
122.21 	(3) family psychoeducation services under supervision of a mental health 
122.22 	professional.

122.23 	Sec. 9. Minnesota Statutes 2004, section 256B.76, is amended to read:
122.24 	256B.76 PHYSICIAN AND DENTAL REIMBURSEMENT.
122.25 	(a) Effective for services rendered on or after October 1, 1992, the commissioner 
122.26 	shall make payments for physician services as follows:
122.27 	(1) payment for level one Centers for Medicare and Medicaid Services' common 
122.28 	procedural coding system codes titled "office and other outpatient services," "preventive 
122.29 	medicine new and established patient," "delivery, antepartum, and postpartum care," 
122.30 	"critical care," cesarean delivery and pharmacologic management provided to psychiatric 
122.31 	patients, and level three codes for enhanced services for prenatal high risk, shall be paid 
122.32 	at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 
122.33 	30, 1992. If the rate on any procedure code within these categories is different than the 
123.1 	rate that would have been paid under the methodology in section  256B.74, subdivision 2, 
123.2 	then the larger rate shall be paid; 
123.3 	(2) payments for all other services shall be paid at the lower of (i) submitted charges, 
123.4 	or (ii) 15.4 percent above the rate in effect on June 30, 1992;
123.5 	(3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th 
123.6 	percentile of 1989, less the percent in aggregate necessary to equal the above increases 
123.7 	except that payment rates for home health agency services shall be the rates in effect 
123.8 	on September 30, 1992;
123.9 	(4) effective for services rendered on or after January 1, 2000, payment rates for 
123.10 	physician and professional services shall be increased by three percent over the rates in 
123.11 	effect on December 31, 1999, except for home health agency and family planning agency 
123.12 	services; and
123.13 	(5) the increases in clause (4) shall be implemented January 1, 2000, for managed 
123.14 	care.
123.15 	(b) Effective for services rendered on or after October 1, 1992, the commissioner 
123.16 	shall make payments for dental services as follows:
123.17 	(1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25 
123.18 	percent above the rate in effect on June 30, 1992;
123.19 	(2) dental rates shall be converted from the 50th percentile of 1982 to the 50th 
123.20 	percentile of 1989, less the percent in aggregate necessary to equal the above increases;
123.21 	(3) effective for services rendered on or after January 1, 2000, payment rates for 
123.22 	dental services shall be increased by three percent over the rates in effect on December 
123.23 	31, 1999;
123.24 	(4) the commissioner shall award grants to community clinics or other nonprofit 
123.25 	community organizations, political subdivisions, professional associations, or other 
123.26 	organizations that demonstrate the ability to provide dental services effectively to public 
123.27 	program recipients. Grants may be used to fund the costs related to coordinating access for 
123.28 	recipients, developing and implementing patient care criteria, upgrading or establishing 
123.29 	new facilities, acquiring furnishings or equipment, recruiting new providers, or other 
123.30 	development costs that will improve access to dental care in a region. In awarding grants, 
123.31 	the commissioner shall give priority to applicants that plan to serve areas of the state in 
123.32 	which the number of dental providers is not currently sufficient to meet the needs of 
123.33 	recipients of public programs or uninsured individuals. The commissioner shall consider 
123.34 	the following in awarding the grants:
123.35 	(i) potential to successfully increase access to an underserved population;
123.36 	(ii) the ability to raise matching funds;
124.1 	(iii) the long-term viability of the project to improve access beyond the period 
124.2 	of initial funding;
124.3 	(iv) the efficiency in the use of the funding; and
124.4 	(v) the experience of the proposers in providing services to the target population.
124.5 	The commissioner shall monitor the grants and may terminate a grant if the grantee 
124.6 	does not increase dental access for public program recipients. The commissioner shall 
124.7 	consider grants for the following:
124.8 	(i) implementation of new programs or continued expansion of current access 
124.9 	programs that have demonstrated success in providing dental services in underserved 
124.10 	areas;
124.11 	(ii) a pilot program for utilizing hygienists outside of a traditional dental office to 
124.12 	provide dental hygiene services; and
124.13 	(iii) a program that organizes a network of volunteer dentists, establishes a system to 
124.14 	refer eligible individuals to volunteer dentists, and through that network provides donated 
124.15 	dental care services to public program recipients or uninsured individuals;
124.16 	(5) beginning October 1, 1999, the payment for tooth sealants and fluoride treatments 
124.17 	shall be the lower of (i) submitted charge, or (ii) 80 percent of median 1997 charges;
124.18 	(6) the increases listed in clauses (3) and (5) shall be implemented January 1, 2000, 
124.19 	for managed care; and
124.20 	(7) effective for services provided on or after January 1, 2002, payment for 
124.21 	diagnostic examinations and dental x-rays provided to children under age 21 shall be the 
124.22 	lower of (i) the submitted charge, or (ii) 85 percent of median 1999 charges.
124.23 	(c) Effective for dental services rendered on or after January 1, 2002, the 
124.24 	commissioner may, within the limits of available appropriation, increase reimbursements 
124.25 	to dentists and dental clinics deemed by the commissioner to be critical access dental 
124.26 	providers. Reimbursement to a critical access dental provider may be increased by not 
124.27 	more than 50 percent above the reimbursement rate that would otherwise be paid to 
124.28 	the provider. Payments to health plan companies shall be adjusted to reflect increased 
124.29 	reimbursements to critical access dental providers as approved by the commissioner. 
124.30 	In determining which dentists and dental clinics shall be deemed critical access dental 
124.31 	providers, the commissioner shall review:
124.32 	(1) the utilization rate in the service area in which the dentist or dental clinic operates 
124.33 	for dental services to patients covered by medical assistance, general assistance medical 
124.34 	care, or MinnesotaCare as their primary source of coverage;
125.1 	(2) the level of services provided by the dentist or dental clinic to patients covered 
125.2 	by medical assistance, general assistance medical care, or MinnesotaCare as their primary 
125.3 	source of coverage; and
125.4 	(3) whether the level of services provided by the dentist or dental clinic is critical to 
125.5 	maintaining adequate levels of patient access within the service area.
125.6 	In the absence of a critical access dental provider in a service area, the commissioner may 
125.7 	designate a dentist or dental clinic as a critical access dental provider if the dentist or 
125.8 	dental clinic is willing to provide care to patients covered by medical assistance, general 
125.9 	assistance medical care, or MinnesotaCare at a level which significantly increases access 
125.10 	to dental care in the service area.
125.11 	The commissioner shall annually establish a reimbursement schedule for critical 
125.12 	access dental providers and provider-specific limits on total reimbursement received 
125.13 	under the reimbursement schedule, and shall notify each critical access dental provider 
125.14 	of the schedule and limit.
125.15 	(d) An entity that operates both a Medicare certified comprehensive outpatient 
125.16 	rehabilitation facility and a facility which was certified prior to January 1, 1993, that is 
125.17 	licensed under Minnesota Rules, parts 9570.2000 to 9570.3600, and for whom at least 33 
125.18 	percent of the clients receiving rehabilitation services in the most recent calendar year are 
125.19 	medical assistance recipients, shall be reimbursed by the commissioner for rehabilitation 
125.20 	services at rates that are 38 percent greater than the maximum reimbursement rate 
125.21 	allowed under paragraph (a), clause (2), when those services are (1) provided within the 
125.22 	comprehensive outpatient rehabilitation facility and (2) provided to residents of nursing 
125.23 	facilities owned by the entity.
125.24 	(e) Effective for services rendered on or after January 1, 2007, the commissioner 
125.25 	shall make payments for physician and professional services based on the Medicare 
125.26 	relative value units (RVUs). This change shall be budget neutral and the cost of 
125.27 	implementing RVUs will be incorporated in the established conversion factor.

125.28 	Sec. 10. [256B.763] CRITICAL ACCESS MENTAL HEALTH RATE INCREASE.
125.29 	(a) For services defined in paragraph (b) and rendered on or after July 1, 2007, 
125.30 	payment rates shall be increased by 23.7 percent over the rates in effect on January 1, 
125.31 	2006, for:
125.32 	(1) psychiatrists and advanced practice registered nurses with a psychiatric specialty;
125.33 	(2) community mental health centers under section 256B.0625, subdivision 5; and
126.1 	(3) mental health clinics and centers certified under Minnesota Rules, parts 
126.2 	9520.0750 to 9520.0870, or hospital outpatient psychiatric departments that are designated 
126.3 	as essential community providers under section 62Q.19.
126.4 	(b) This increase applies to group skills training when provided as a component of 
126.5 	children's therapeutic services and support, psychotherapy, medication management, 
126.6 	evaluation and management, diagnostic assessment, explanation of findings, psychological 
126.7 	testing, neuropsychological services, direction of behavioral aides, and inpatient 
126.8 	consultation.
126.9 	(c) This increase does not apply to rates that are governed by section 256B.0625, 
126.10 	subdivision 30, or 256B.761, paragraph (b), other cost-based rates, rates that are 
126.11 	negotiated with the county, rates that are established by the federal government, or rates 
126.12 	that increased between January 1, 2004, and January 1, 2005.
126.13 	(d) The commissioner shall adjust rates paid to prepaid health plans under contract 
126.14 	with the commissioner to reflect the rate increases provided in paragraph (a). The prepaid 
126.15 	health plan must pass this rate increase to the providers identified in paragraph (a).

126.16 	Sec. 11. Minnesota Statutes 2005 Supplement, section 256D.03, subdivision 3, is 
126.17 	amended to read:
126.18 		Subd. 3.General assistance medical care; eligibility. (a) General assistance 
126.19 	medical care may be paid for any person who is not eligible for medical assistance under 
126.20 	chapter 256B, including eligibility for medical assistance based on a spenddown of excess 
126.21 	income according to section 256B.056, subdivision 5, or MinnesotaCare as defined in 
126.22 	paragraph (b), except as provided in paragraph (c), and:
126.23 	(1) who is receiving assistance under section 256D.05, except for families with 
126.24 	children who are eligible under Minnesota family investment program (MFIP), or who is 
126.25 	having a payment made on the person's behalf under sections 256I.01 to 256I.06; or
126.26 	(2) who is a resident of Minnesota; and
126.27 	(i) who has gross countable income not in excess of 75 percent of the federal poverty 
126.28 	guidelines for the family size, using a six-month budget period and whose equity in assets 
126.29 	is not in excess of $1,000 per assistance unit. General assistance medical care is not 
126.30 	available for applicants or enrollees who are otherwise eligible for medical assistance but 
126.31 	fail to verify their assets. Enrollees who become eligible for medical assistance shall be 
126.32 	terminated and transferred to medical assistance. Exempt assets, the reduction of excess 
126.33 	assets, and the waiver of excess assets must conform to the medical assistance program in 
126.34 	section 256B.056, subdivision 3, with the following exception: the maximum amount of 
126.35 	undistributed funds in a trust that could be distributed to or on behalf of the beneficiary by 
127.1 	the trustee, assuming the full exercise of the trustee's discretion under the terms of the 
127.2 	trust, must be applied toward the asset maximum;
127.3 	(ii) who has gross countable income above 75 percent of the federal poverty 
127.4 	guidelines but not in excess of 175 percent of the federal poverty guidelines for the 
127.5 	family size, using a six-month budget period, whose equity in assets is not in excess 
127.6 	of the limits in section 256B.056, subdivision 3c, and who applies during an inpatient 
127.7 	hospitalization; or
127.8 	(iii) the commissioner shall adjust the income standards under this section each July 
127.9 	1 by the annual update of the federal poverty guidelines following publication by the 
127.10 	United States Department of Health and Human Services.
127.11 	(b) Effective for applications and renewals processed on or after September 1, 2006, 
127.12 	general assistance medical care may not be paid for applicants or recipients who are adults 
127.13 	with dependent children under 21 whose gross family income is equal to or less than 275 
127.14 	percent of the federal poverty guidelines who are not described in paragraph (e).
127.15 	(c) Effective for applications and renewals processed on or after September 1, 2006, 
127.16 	general assistance medical care may be paid for applicants and recipients who meet all 
127.17 	eligibility requirements of paragraph (a), clause (2), item (i), for a temporary period 
127.18 	beginning the date of application. Immediately following approval of general assistance 
127.19 	medical care, enrollees shall be enrolled in MinnesotaCare under section 256L.04, 
127.20 	subdivision 7, with covered services as provided in section 256L.03 for the rest of the 
127.21 	six-month eligibility period, until their six-month renewal.
127.22 	(d) To be eligible for general assistance medical care following enrollment in 
127.23 	MinnesotaCare as required by paragraph (c), an individual must complete a new 
127.24 	application.
127.25 	(e) Applicants and recipients eligible under paragraph (a), clause (1), or; who have 
127.26 	applied for and are awaiting a determination of blindness or disability by the state medical 
127.27 	review team or a determination of eligibility for Supplemental Security Income or Social 
127.28 	Security Disability Insurance by the Social Security Administration, or; who fail to meet 
127.29 	the requirements of section 256L.09, subdivision 2,; who are classified as end-stage renal 
127.30 	disease beneficiaries in the Medicare program; who are enrolled in private health care 
127.31 	coverage as defined in section 256B.02, subdivision 9; who are eligible under paragraph 
127.32 	(j); or who receive treatment funded pursuant to section 254B.02 are exempt from the 
127.33 	MinnesotaCare enrollment requirements of this subdivision.
127.34 	(f) For applications received on or after October 1, 2003, eligibility may begin no 
127.35 	earlier than the date of application. For individuals eligible under paragraph (a), clause 
127.36 	(2), item (i), a redetermination of eligibility must occur every 12 months. Individuals are 
128.1 	eligible under paragraph (a), clause (2), item (ii), only during inpatient hospitalization but 
128.2 	may reapply if there is a subsequent period of inpatient hospitalization.
128.3 	(g) Beginning September 1, 2006, Minnesota health care program applications and 
128.4 	renewals completed by recipients and applicants who are persons described in paragraph 
128.5 	(c) and submitted to the county agency shall be determined for MinnesotaCare eligibility 
128.6 	by the county agency. If all other eligibility requirements of this subdivision are met, 
128.7 	eligibility for general assistance medical care shall be available in any month during which 
128.8 	MinnesotaCare enrollment is pending. Upon notification of eligibility for MinnesotaCare, 
128.9 	notice of termination for eligibility for general assistance medical care shall be sent to 
128.10 	an applicant or recipient. If all other eligibility requirements of this subdivision are 
128.11 	met, eligibility for general assistance medical care shall be available until enrollment in 
128.12 	MinnesotaCare subject to the provisions of paragraphs (c), (e), and (f).
128.13 	(h) The date of an initial Minnesota health care program application necessary to 
128.14 	begin a determination of eligibility shall be the date the applicant has provided a name, 
128.15 	address, and Social Security number, signed and dated, to the county agency or the 
128.16 	Department of Human Services. If the applicant is unable to provide a name, address, 
128.17 	Social Security number, and signature when health care is delivered due to a medical 
128.18 	condition or disability, a health care provider may act on an applicant's behalf to establish 
128.19 	the date of an initial Minnesota health care program application by providing the county 
128.20 	agency or Department of Human Services with provider identification and a temporary 
128.21 	unique identifier for the applicant. The applicant must complete the remainder of the 
128.22 	application and provide necessary verification before eligibility can be determined. The 
128.23 	county agency must assist the applicant in obtaining verification if necessary.
128.24 	(i) County agencies are authorized to use all automated databases containing 
128.25 	information regarding recipients' or applicants' income in order to determine eligibility 
128.26 	for general assistance medical care or MinnesotaCare. Such use shall be considered 
128.27 	sufficient in order to determine eligibility and premium payments by the county agency.
128.28 	(j) General assistance medical care is not available for a person in a correctional 
128.29 	facility unless the person is detained by law for less than one year in a county correctional 
128.30 	or detention facility as a person accused or convicted of a crime, or admitted as an 
128.31 	inpatient to a hospital on a criminal hold order, and the person is a recipient of general 
128.32 	assistance medical care at the time the person is detained by law or admitted on a criminal 
128.33 	hold order and as long as the person continues to meet other eligibility requirements 
128.34 	of this subdivision.
128.35 	(k) General assistance medical care is not available for applicants or recipients who 
128.36 	do not cooperate with the county agency to meet the requirements of medical assistance.
129.1 	(l) In determining the amount of assets of an individual eligible under paragraph 
129.2 	(a), clause (2), item (i), there shall be included any asset or interest in an asset, including 
129.3 	an asset excluded under paragraph (a), that was given away, sold, or disposed of for 
129.4 	less than fair market value within the 60 months preceding application for general 
129.5 	assistance medical care or during the period of eligibility. Any transfer described in this 
129.6 	paragraph shall be presumed to have been for the purpose of establishing eligibility for 
129.7 	general assistance medical care, unless the individual furnishes convincing evidence to 
129.8 	establish that the transaction was exclusively for another purpose. For purposes of this 
129.9 	paragraph, the value of the asset or interest shall be the fair market value at the time it 
129.10 	was given away, sold, or disposed of, less the amount of compensation received. For any 
129.11 	uncompensated transfer, the number of months of ineligibility, including partial months, 
129.12 	shall be calculated by dividing the uncompensated transfer amount by the average monthly 
129.13 	per person payment made by the medical assistance program to skilled nursing facilities 
129.14 	for the previous calendar year. The individual shall remain ineligible until this fixed period 
129.15 	has expired. The period of ineligibility may exceed 30 months, and a reapplication for 
129.16 	benefits after 30 months from the date of the transfer shall not result in eligibility unless 
129.17 	and until the period of ineligibility has expired. The period of ineligibility begins in the 
129.18 	month the transfer was reported to the county agency, or if the transfer was not reported, 
129.19 	the month in which the county agency discovered the transfer, whichever comes first. For 
129.20 	applicants, the period of ineligibility begins on the date of the first approved application.
129.21 	(m) When determining eligibility for any state benefits under this subdivision, 
129.22 	the income and resources of all noncitizens shall be deemed to include their sponsor's 
129.23 	income and resources as defined in the Personal Responsibility and Work Opportunity 
129.24 	Reconciliation Act of 1996, title IV, Public Law 104-193, sections 421 and 422, and 
129.25 	subsequently set out in federal rules.
129.26 	(n) Undocumented noncitizens and nonimmigrants are ineligible for general 
129.27 	assistance medical care. For purposes of this subdivision, a nonimmigrant is an individual 
129.28 	in one or more of the classes listed in United States Code, title 8, section 1101(a)(15), and 
129.29 	an undocumented noncitizen is an individual who resides in the United States without the 
129.30 	approval or acquiescence of the Immigration and Naturalization Service.
129.31 	(o) Notwithstanding any other provision of law, a noncitizen who is ineligible for 
129.32 	medical assistance due to the deeming of a sponsor's income and resources, is ineligible 
129.33 	for general assistance medical care.
129.34 	(p) Effective July 1, 2003, general assistance medical care emergency services end.

129.35 	EFFECTIVE DATE. This section is effective September 1, 2006.

130.1 	Sec. 12. Minnesota Statutes 2005 Supplement, section 256L.03, subdivision 5, is 
130.2 	amended to read:
130.3 		Subd. 5.Co-payments and coinsurance. (a) Except as provided in paragraphs (b) 
130.4 	and (c), the MinnesotaCare benefit plan shall include the following co-payments and 
130.5 	coinsurance requirements for all enrollees:
130.6 	(1) ten percent of the paid charges for inpatient hospital services for adult enrollees, 
130.7 	subject to an annual inpatient out-of-pocket maximum of $1,000 per individual and 
130.8 	$3,000 per family;
130.9 	(2) $3 per prescription for adult enrollees;
130.10 	(3) $25 for eyeglasses for adult enrollees;
130.11 	(4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an 
130.12 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
130.13 	established illness, and which is delivered in an ambulatory setting by a physician or 
130.14 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
130.15 	audiologist, optician, or optometrist; and
130.16 	(5) $6 for nonemergency visits to a hospital-based emergency room; and.
130.17 	(6) 50 percent of the fee-for-service rate for adult dental care services other than 
130.18 	preventive care services for persons eligible under section 256L.04, subdivisions 1 to 7, 
130.19 	with income equal to or less than 175 percent of the federal poverty guidelines.
130.20 	(b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of 
130.21 	children under the age of 21 in households with family income equal to or less than 175 
130.22 	percent of the federal poverty guidelines. Paragraph (a), clause (1), does not apply to 
130.23 	parents and relative caretakers of children under the age of 21 in households with family 
130.24 	income greater than 175 percent of the federal poverty guidelines for inpatient hospital 
130.25 	admissions occurring on or after January 1, 2001.
130.26 	(c) Paragraph (a), clauses (1) to (4), do not apply to pregnant women and children 
130.27 	under the age of 21.
130.28 	(d) Adult enrollees with family gross income that exceeds 175 percent of the 
130.29 	federal poverty guidelines and who are not pregnant shall be financially responsible for 
130.30 	the coinsurance amount, if applicable, and amounts which exceed the $10,000 inpatient 
130.31 	hospital benefit limit.
130.32 	(e) When a MinnesotaCare enrollee becomes a member of a prepaid health plan, 
130.33 	or changes from one prepaid health plan to another during a calendar year, any charges 
130.34 	submitted towards the $10,000 annual inpatient benefit limit, and any out-of-pocket 
130.35 	expenses incurred by the enrollee for inpatient services, that were submitted or incurred 
130.36 	prior to enrollment, or prior to the change in health plans, shall be disregarded.

131.1 	EFFECTIVE DATE. This section is effective July 1, 2007.

131.2 	Sec. 13. Minnesota Statutes 2004, section 256L.11, is amended by adding a subdivision 
131.3 	to read:
131.4 		Subd. 7.Critical access dental providers. Effective for dental services provided 
131.5 	to MinnesotaCare enrollees on or after January 1, 2007, the commissioner shall increase 
131.6 	payment rates to dentists and dental clinics deemed by the commissioner to be critical 
131.7 	access providers under section 256B.76, paragraph (c), by 50 percent above the payment 
131.8 	rate that would otherwise be paid to the provider. The commissioner shall adjust the 
131.9 	rates paid on or after January 1, 2007, to prepaid health plans under contract with the 
131.10 	commissioner to reflect this rate increase. The prepaid health plan must pass this rate 
131.11 	increase to providers who have been identified by the commissioner as critical access 
131.12 	dental providers under section 256B.76, paragraph (c).

131.13 	EFFECTIVE DATE. This section is effective July 1, 2006.

131.14 	Sec. 14. Minnesota Statutes 2004, section 256L.17, subdivision 2, is amended to read:
131.15 		Subd. 2.Limit on total assets. (a) Effective July 1, 2002, or upon federal approval, 
131.16 	whichever is later, in order to be eligible for the MinnesotaCare program, a household of 
131.17 	two or more persons must not own more than $20,000 in total net assets, and a household 
131.18 	of one person must not own more than $10,000 in total net assets.
131.19 	(b) For purposes of this subdivision, assets are determined according to section  
131.20 	256B.056, subdivision 3c. 
131.21 	(c) State-funded MinnesotaCare is not available for applicants or enrollees who are 
131.22 	otherwise eligible for medical assistance but fail to verify assets. Enrollees who become 
131.23 	eligible for federally funded medical assistance shall be terminated from state-funded 
131.24 	MinnesotaCare and transferred to medical assistance.

131.25 	Sec. 15. PHARMACY PAYMENT REFORM ADVISORY COMMITTEE.
 131.26 		Subdivision 1.Definitions. For purposes of this section, the following words, terms, 
131.27 	and phrases have the following meanings:
131.28 	(a) "Department" means the Department of Human Services.
131.29 	(b) "Commissioner" means the commissioner of the Department of Human Services.
131.30 	(c) "Cost of dispensing" includes, but is not limited to, operational and overhead 
131.31 	costs; professional counseling as required under the Omnibus Budget Reconciliation 
131.32 	Act of 1990, excluding medication management services under Minnesota Statutes, 
131.33 	section 256B.0625, subdivision 13h; salaries; and other associated administrative costs. In 
132.1 	addition, cost of dispensing includes expenses transferred by wholesale drug distributors 
132.2 	to pharmacies as a result of the wholesale drug distributor tax under Minnesota Statutes, 
132.3 	sections 295.52 to 295.582.
132.4 	(d) "Additional costs" include, but are not limited to, costs relating to coordination of 
132.5 	benefits, bad debt, uncollected co-pays, payment lag times, and high rate of rejected claims.
132.6 	(e) "Advisory committee" means the Pharmacy Payment Reform Advisory 
132.7 	Committee established by this section.
132.8 		Subd. 2.Advisory committee. The Pharmacy Payment Reform Advisory 
132.9 	Committee is established under the direction of the commissioner of human services. 
132.10 	The commissioner, after receiving recommendations from the Minnesota Pharmacists 
132.11 	Association, the Minnesota Retailers Association, the Minnesota Hospital Association, 
132.12 	and the Minnesota Wholesale Druggists Association, shall convene a pharmacy payment 
132.13 	reform advisory committee to advise the commissioner and make recommendations to the 
132.14 	legislature on implementation of pharmacy reforms contained in title VI, chapter IV, of 
132.15 	the Deficit Reduction Act of 2005. The committee shall be comprised of seven private 
132.16 	sector representatives with management/operations experience, representing each of the 
132.17 	following pharmacy practice settings: independent and chain pharmacy entities, one of 
132.18 	whom must have expertise in pharmacoeconomics; managed care; hospital outpatient 
132.19 	pharmacies; and wholesale drug distribution. The committee shall be staffed by an 
132.20 	employee of the department who shall serve as an ex officio nonvoting member of the 
132.21 	committee. The department's pharmacy program manager shall also serve as an ex 
132.22 	officio, nonvoting member of the committee. The committee is governed by Minnesota 
132.23 	Statutes, section 15.059, except that committee members do not receive compensation or 
132.24 	reimbursement for expenses. The advisory committee members shall serve a two-year 
132.25 	term and the advisory committee will expire on January 31, 2008. At least five of the 
132.26 	committee members shall be registered pharmacists.
132.27 		Subd. 3.Cost of dispensing study. The department shall conduct a prescription 
132.28 	drug cost of dispensing study to determine the average cost of dispensing Medicaid 
132.29 	prescriptions in Minnesota. The department shall contract with an independent third party 
132.30 	to conduct a Medicaid prescription drug cost of dispensing study. The cost of dispensing 
132.31 	study shall be completed by an independent third party no later than January 1, 2007, and 
132.32 	reported to the department and the advisory committee upon completion.
132.33 		Subd. 4.Content of study. The study shall determine the cost of dispensing 
132.34 	the average prescription and any additional costs that might be incurred for dispensing 
132.35 	Medicaid prescriptions. The study shall include the current level of dispensing fees paid to 
132.36 	providers for dispensing Medicaid prescription drugs and an estimate of revenues required 
133.1 	to adequately adjust reimbursement to cover the cost to pharmacies for dispensing 
133.2 	Medicaid prescription drugs.
133.3 		Subd. 5.Methodology of study and publishing requirement. The independent 
133.4 	third-party entity performing the cost of dispensing research shall submit to the advisory 
133.5 	committee the entity's proposed research methodology and shall make the data available 
133.6 	to allow other independent researchers to review the study results. The data shall be 
133.7 	published in a manner that does not identify the source of the data.
133.8 		Subd. 6.Recommendations. The advisory committee shall use the information 
133.9 	from the cost of dispensing study and make recommendations to the commissioner on 
133.10 	implementation of pharmacy reforms contained in title VI, chapter IV, of the Deficit 
133.11 	Reduction Act of 2005. The commissioner shall report the findings of the study and the 
133.12 	recommendations of the advisory committee to the legislature by February 1, 2007. The 
133.13 	commissioner, in consultation with the advisory committee, shall make recommendations 
133.14 	to the legislature on how to adequately adjust Medicaid reimbursement rates to pharmacies 
133.15 	to cover the costs of dispensing and additional costs to pharmacies. Reports shall include 
133.16 	the current level of dispensing fees paid to providers for dispensing Medicaid prescription 
133.17 	drugs and an estimate of revenues required to adequately adjust reimbursement to cover 
133.18 	the cost to pharmacies for dispensing Medicaid prescription drugs to ensure that:
133.19 	(1) reimbursement is sufficient to enlist an adequate number of participating 
133.20 	pharmacy providers so that pharmacy services are as available for Medicaid recipients 
133.21 	under the program as for the state's general population;
133.22 	(2) Medicaid dispensing fees are adequate to reimburse pharmacy providers for the 
133.23 	costs of dispensing prescriptions under the Medicaid program;
133.24 	(3) Medicaid pharmacy reimbursement for multiple-source drugs included on the 
133.25 	federal upper reimbursement limit is set at the level established by the federal government 
133.26 	under United States Code, title 42, section 1396r-8(e)(5); and
133.27 	(4) the new payment system does not create disincentives for pharmacists to 
133.28 	dispense generic drugs.

133.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

133.30 	Sec. 16. MENTAL HEALTH PILOT PROGRAM FOR UNSHELTERED 
133.31 	INDIVIDUALS.
 133.32 		Subdivision 1.Pilot project program components. The commissioner of human 
133.33 	services shall establish two pilot projects, one in Ramsey County and one in Hennepin 
133.34 	County, which shall:
133.35 	(1) operate two ten-bed facilities in separate locations;
134.1 	(2) provide community support to individuals who have been living homeless for at 
134.2 	least one year;
134.3 	(3) provide 24-hour supervision; and
134.4 	(4) provide on-site mental health services which focus on the mental health needs of 
134.5 	individuals who have lived unsheltered.
134.6 		Subd. 2.Group residential housing. Notwithstanding Minnesota Statutes, section 
134.7 	256I.05, subdivisions 1a and 1c, a county agency shall negotiate a supplementary rate in 
134.8 	addition to the rate specified in Minnesota Statutes, section 256I.05, subdivision 1, not to 
134.9 	exceed $700 per month, including any legislatively authorized inflationary adjustments for 
134.10 	a group residential program that meets the components under subdivision 1, and for the 
134.11 	independent living component of the program under subdivision 3.
134.12 		Subd. 3.Independent living. An individual who has lived in one of the facilities 
134.13 	under subdivision 1, and who is being transitioned to independent living as part of the 
134.14 	program plan, continues to be eligible for group residential housing and the supplementary 
134.15 	service rate negotiated with the county under subdivision 2.
134.16 		Subd. 4.Effective date. This section is effective July 1, 2006, through June 30, 
134.17 	2008.

134.18 	Sec. 17.  REPEALER.
 134.19 	Minnesota Statutes 2004, sections 245.465, subdivision 2; 256B.0945, subdivisions 
134.20 	5, 6, 7, 8, and 9; and 256B.83, are repealed.

134.21 	ARTICLE 17
134.22 	HEALTH CARE FEDERAL COMPLIANCE

134.23 	Section 1. Minnesota Statutes 2004, section 62A.045, is amended to read:
134.24 	62A.045 PAYMENTS ON BEHALF OF ENROLLEES IN GOVERNMENT 
134.25 	HEALTH PROGRAMS.
134.26 	(a) As a condition of doing business in Minnesota, each health insurer shall comply 
134.27 	with the requirements of the federal Deficit Reduction Act of 2005, Public Law 109-171, 
134.28 	including any federal regulations adopted under that act, to the extent that it imposes a 
134.29 	requirement that applies in this state and that is not also required by the laws of this state. 
134.30 	This section does not require compliance with any provision of the federal act prior to 
134.31 	the effective date provided for that provision in the federal act. The commissioner shall 
134.32 	enforce this section.
134.33 	For the purpose of this section, "health insurer" includes self-insured plans, group 
134.34 	health plans (as defined in section 607(1) of the Employee Retirement Income Security 
135.1 	Act of 1974), service benefit plans, managed care organizations, pharmacy benefit 
135.2 	managers, or other parties that are by contract legally responsible to pay a claim for a 
135.3 	healthcare item or service for an individual receiving benefits under paragraph (b).
135.4 	(b) No health plan issued or renewed to provide coverage to a Minnesota resident 
135.5 	shall contain any provision denying or reducing benefits because services are rendered to a 
135.6 	person who is eligible for or receiving medical benefits pursuant to title XIX of the Social 
135.7 	Security Act (Medicaid) in this or any other state; chapter 256; 256B; or 256D or services 
135.8 	pursuant to section  252.27;  256L.01 to  256L.10;  260B.331, subdivision 2;  260C.331, 
135.9 	subdivision 2; or  393.07, subdivision 1 or 2. No health carrier providing benefits under 
135.10 	plans covered by this section shall use eligibility for medical programs named in this 
135.11 	section as an underwriting guideline or reason for nonacceptance of the risk. 
135.12 	(b) (c) If payment for covered expenses has been made under state medical programs 
135.13 	for health care items or services provided to an individual, and a third party has a legal 
135.14 	liability to make payments, the rights of payment and appeal of an adverse coverage 
135.15 	decision for the individual, or in the case of a child their responsible relative or caretaker, 
135.16 	will be subrogated to the state agency. The state agency may assert its rights under this 
135.17 	section within three years of the date the service was rendered. For purposes of this 
135.18 	section, "state agency" includes prepaid health plans under contract with the commissioner 
135.19 	according to sections  256B.69,  256D.03, subdivision 4, paragraph (c), and  256L.12; 
135.20 	children's mental health collaboratives under section  245.493; demonstration projects for 
135.21 	persons with disabilities under section  256B.77; nursing homes under the alternative 
135.22 	payment demonstration project under section  256B.434; and county-based purchasing 
135.23 	entities under section  256B.692. 
135.24 	(c) (d) Notwithstanding any law to the contrary, when a person covered by a health 
135.25 	plan receives medical benefits according to any statute listed in this section, payment for 
135.26 	covered services or notice of denial for services billed by the provider must be issued 
135.27 	directly to the provider. If a person was receiving medical benefits through the Department 
135.28 	of Human Services at the time a service was provided, the provider must indicate this 
135.29 	benefit coverage on any claim forms submitted by the provider to the health carrier for 
135.30 	those services. If the commissioner of human services notifies the health carrier that 
135.31 	the commissioner has made payments to the provider, payment for benefits or notices 
135.32 	of denials issued by the health carrier must be issued directly to the commissioner. 
135.33 	Submission by the department to the health carrier of the claim on a Department of 
135.34 	Human Services claim form is proper notice and shall be considered proof of payment of 
135.35 	the claim to the provider and supersedes any contract requirements of the health carrier 
135.36 	relating to the form of submission. Liability to the insured for coverage is satisfied to the 
136.1 	extent that payments for those benefits are made by the health carrier to the provider or the 
136.2 	commissioner as required by this section.
136.3 	(d) (e) When a state agency has acquired the rights of an individual eligible for 
136.4 	medical programs named in this section and has health benefits coverage through a 
136.5 	health carrier, the health carrier shall not impose requirements that are different from 
136.6 	requirements applicable to an agent or assignee of any other individual covered.
136.7 	(e) (f) For the purpose of this section, health plan includes coverage offered by 
136.8 	community integrated service networks, any plan governed under the federal Employee 
136.9 	Retirement Income Security Act of 1974 (ERISA), United States Code, title 29, sections 
136.10 	1001 to 1461, and coverage offered under the exclusions listed in section  62A.011, 
136.11 	subdivision 3, clauses (2), (6), (9), (10), and (12). 

136.12 	Sec. 2. Minnesota Statutes 2004, section 62S.05, is amended by adding a subdivision 
136.13 	to read:
136.14 		Subd. 4.Extension of limitation periods. The commissioner may extend the 
136.15 	limitation periods set forth in subdivisions 1 and 2 as to specific age group categories in 
136.16 	specific policy forms upon finding that the extension is in the best interest of the public. 

136.17 	EFFECTIVE DATE. This section is effective July 1, 2006.

136.18 	Sec. 3. Minnesota Statutes 2004, section 62S.08, subdivision 3, is amended to read:
136.19 		Subd. 3.Mandatory format. The following standard format outline of coverage 
136.20 	must be used, unless otherwise specifically indicated:
136.21 	COMPANY NAME
136.22 	ADDRESS - CITY AND STATE
136.23 	TELEPHONE NUMBER
136.24 	LONG-TERM CARE INSURANCE
136.25 	OUTLINE OF COVERAGE
136.26 	Policy Number or Group Master Policy and Certificate Number
136.27 	(Except for policies or certificates which are guaranteed issue, the following caution 
136.28 	statement, or language substantially similar, must appear as follows in the outline of 
136.29 	coverage.)
136.30 	CAUTION: The issuance of this long-term care insurance (policy) (certificate) 
136.31 	is based upon your responses to the questions on your application. A copy of your 
136.32 	(application) (enrollment form) (is enclosed) (was retained by you when you applied). 
136.33 	If your answers are incorrect or untrue, the company has the right to deny benefits or 
136.34 	rescind your policy. The best time to clear up any questions is now, before a claim 
137.1 	arises. If, for any reason, any of your answers are incorrect, contact the company at this 
137.2 	address: (insert address).
137.3 	(1) This policy is (an individual policy of insurance) (a group policy) which was 
137.4 	issued in the (indicate jurisdiction in which group policy was issued).
137.5 	(2) PURPOSE OF OUTLINE OF COVERAGE. This outline of coverage provides 
137.6 	a very brief description of the important features of the policy. You should compare 
137.7 	this outline of coverage to outlines of coverage for other policies available to you. This 
137.8 	is not an insurance contract, but only a summary of coverage. Only the individual or 
137.9 	group policy contains governing contractual provisions. This means that the policy or 
137.10 	group policy sets forth in detail the rights and obligations of both you and the insurance 
137.11 	company. Therefore, if you purchase this coverage, or any other coverage, it is important 
137.12 	that you READ YOUR POLICY (OR CERTIFICATE) CAREFULLY.
137.13 	(3) THIS PLAN IS INTENDED TO BE A QUALIFIED LONG-TERM CARE 
137.14 	INSURANCE CONTRACT AS DEFINED UNDER SECTION 7702(B)(b) OF THE 
137.15 	INTERNAL REVENUE CODE OF 1986.
137.16 	(4) TERMS UNDER WHICH THE POLICY OR CERTIFICATE MAY BE 
137.17 	CONTINUED IN FORCE OR DISCONTINUED.
137.18 	(a) (For long-term care health insurance policies or certificates describe one of the 
137.19 	following permissible policy renewability provisions:)
137.20 	(1) (Policies and certificates that are guaranteed renewable shall contain the 
137.21 	following statement:) RENEWABILITY: THIS POLICY (CERTIFICATE) IS 
137.22 	GUARANTEED RENEWABLE. This means you have the right, subject to the terms of 
137.23 	your policy, (certificate) to continue this policy as long as you pay your premiums on time. 
137.24 	(Company name) cannot change any of the terms of your policy on its own, except that, in 
137.25 	the future, IT MAY INCREASE THE PREMIUM YOU PAY.
137.26 	(2) (Policies and certificates that are noncancelable shall contain the following 
137.27 	statement:) RENEWABILITY: THIS POLICY (CERTIFICATE) IS NONCANCELABLE. 
137.28 	This means that you have the right, subject to the terms of your policy, to continue this 
137.29 	policy as long as you pay your premiums on time. (Company name) cannot change any 
137.30 	of the terms of your policy on its own and cannot change the premium you currently 
137.31 	pay. However, if your policy contains an inflation protection feature where you choose 
137.32 	to increase your benefits, (Company name) may increase your premium at that time for 
137.33 	those additional benefits.
137.34 	(b) (For group coverage, specifically describe continuation/conversion provisions 
137.35 	applicable to the certificate and group policy.)
138.1 	(c) (Describe waiver of premium provisions or state that there are not such 
138.2 	provisions.)
138.3 	(5) TERMS UNDER WHICH THE COMPANY MAY CHANGE PREMIUMS. 
138.4 	(In bold type larger than the maximum type required to be used for the other 
138.5 	provisions of the outline of coverage, state whether or not the company has a right to 
138.6 	change the premium and, if a right exists, describe clearly and concisely each circumstance 
138.7 	under which the premium may change.)
138.8 	(6) TERMS UNDER WHICH THE POLICY OR CERTIFICATE MAY BE 
138.9 	RETURNED AND PREMIUM REFUNDED.
138.10 	(a) (Provide a brief description of the right to return -- "free look" provision of 
138.11 	the policy.)
138.12 	(b) (Include a statement that the policy either does or does not contain provisions 
138.13 	providing for a refund or partial refund of premium upon the death of an insured or 
138.14 	surrender of the policy or certificate. If the policy contains such provisions, include a 
138.15 	description of them.)
138.16 	(5)(7) THIS IS NOT MEDICARE SUPPLEMENT COVERAGE. If you are 
138.17 	eligible for Medicare, review the Medicare Supplement Buyer's Guide available from 
138.18 	the insurance company.
138.19 	(a) (For agents) neither (insert company name) nor its agents represent Medicare, the 
138.20 	federal government, or any state government.
138.21 	(b) (For direct response) (insert company name) is not representing Medicare, the 
138.22 	federal government, or any state government.
138.23 	(6)(8) LONG-TERM CARE COVERAGE. Policies of this category are designed to 
138.24 	provide coverage for one or more necessary or medically necessary diagnostic, preventive, 
138.25 	therapeutic, rehabilitative, maintenance, or personal care services, provided in a setting 
138.26 	other than an acute care unit of a hospital, such as in a nursing home, in the community, 
138.27 	or in the home.
138.28 	This policy provides coverage in the form of a fixed dollar indemnity benefit for 
138.29 	covered long-term care expenses, subject to policy (limitations), (waiting periods), and 
138.30 	(coinsurance) requirements. (Modify this paragraph if the policy is not an indemnity 
138.31 	policy.)
138.32 	(7)(9) BENEFITS PROVIDED BY THIS POLICY.
138.33 	(a) (Covered services, related deductible(s), waiting periods, elimination periods, 
138.34 	and benefit maximums.)
138.35 	(b) (Institutional benefits, by skill level.)
138.36 	(c) (Noninstitutional benefits, by skill level.)
139.1 	(d) (Eligibility for payment of benefits.)
139.2 	(Activities of daily living and cognitive impairment shall be used to measure an 
139.3 	insured's need for long-term care and must be defined and described as part of the outline 
139.4 	of coverage.)
139.5 	(Any benefit screens must be explained in this section. If these screens differ for 
139.6 	different benefits, explanation of the screen should accompany each benefit description. If 
139.7 	an attending physician or other specified person must certify a certain level of functional 
139.8 	dependency in order to be eligible for benefits, this too must be specified. If activities of 
139.9 	daily living (ADLs) are used to measure an insured's need for long-term care, then these 
139.10 	qualifying criteria or screens must be explained.)
139.11 	(8)(10) LIMITATIONS AND EXCLUSIONS:
139.12 	Describe:
139.13 	(a) preexisting conditions;
139.14 	(b) noneligible facilities/provider;
139.15 	(c) noneligible levels of care (e.g., unlicensed providers, care or treatment provided 
139.16 	by a family member, etc.);
139.17 	(d) exclusions/exceptions; and
139.18 	(e) limitations.
139.19 	(This section should provide a brief specific description of any policy provisions 
139.20 	which limit, exclude, restrict, reduce, delay, or in any other manner operate to qualify 
139.21 	payment of the benefits described in paragraph (6) (8).)
139.22 	THIS POLICY MAY NOT COVER ALL THE EXPENSES ASSOCIATED WITH 
139.23 	YOUR LONG-TERM CARE NEEDS.
139.24 	(9)(11) RELATIONSHIP OF COST OF CARE AND BENEFITS. Because the costs 
139.25 	of long-term care services will likely increase over time, you should consider whether and 
139.26 	how the benefits of this plan may be adjusted. As applicable, indicate the following:
139.27 	(a) that the benefit level will not increase over time;
139.28 	(b) any automatic benefit adjustment provisions;
139.29 	(c) whether the insured will be guaranteed the option to buy additional benefits and 
139.30 	the basis upon which benefits will be increased over time if not by a specified amount 
139.31 	or percentage;
139.32 	(d) if there is such a guarantee, include whether additional underwriting or health 
139.33 	screening will be required, the frequency and amounts of the upgrade options, and any 
139.34 	significant restrictions or limitations; and
139.35 	(e) whether there will be any additional premium charge imposed and how that 
139.36 	is to be calculated.
140.1 	(10)(12) ALZHEIMER'S DISEASE AND OTHER ORGANIC BRAIN 
140.2 	DISORDERS. (State that the policy provides coverage for insureds clinically diagnosed as 
140.3 	having Alzheimer's disease or related degenerative and dementing illnesses. Specifically, 
140.4 	describe each benefit screen or other policy provision which provides preconditions to the 
140.5 	availability of policy benefits for such an insured.)
140.6 	(11)(13) PREMIUM.
140.7 	(a) State the total annual premium for the policy.
140.8 	(b) If the premium varies with an applicant's choice among benefit options, indicate 
140.9 	the portion of annual premium which corresponds to each benefit option.
140.10 	(12)(14) ADDITIONAL FEATURES.
140.11 	(a) Indicate if medical underwriting is used.
140.12 	(b) Describe other important features.
140.13 	(15) CONTACT THE STATE DEPARTMENT OF COMMERCE OR SENIOR 
140.14 	LINKAGE LINE IF YOU HAVE GENERAL QUESTIONS REGARDING LONG-TERM 
140.15 	CARE INSURANCE. CONTACT THE INSURANCE COMPANY IF YOU HAVE 
140.16 	SPECIFIC QUESTIONS REGARDING YOUR LONG-TERM CARE INSURANCE 
140.17 	POLICY OR CERTIFICATE.

140.18 	EFFECTIVE DATE. This section is effective July 1, 2006.

140.19 	Sec. 4. Minnesota Statutes 2004, section 62S.081, subdivision 4, is amended to read:
140.20 		Subd. 4.Forms. An insurer shall use the forms in Appendices B (Personal 
140.21 	Worksheet) and F (Potential Rate Increase Disclosure Form) of the Long-term Care 
140.22 	Insurance Model Regulation adopted by the National Association of Insurance 
140.23 	Commissioners to comply with the requirements of subdivisions 1 and 2.

140.24 	EFFECTIVE DATE. This section is effective July 1, 2006.

140.25 	Sec. 5. Minnesota Statutes 2004, section 62S.10, subdivision 2, is amended to read:
140.26 		Subd. 2.Contents. The summary must include the following information:
140.27 	(1) an explanation of how the long-term care benefit interacts with other components 
140.28 	of the policy, including deductions from death benefits;
140.29 	(2) an illustration of the amount of benefits, the length of benefits, and the guaranteed 
140.30 	lifetime benefits, if any, for each covered person; and
140.31 	(3) any exclusions, reductions, and limitations on benefits of long-term care; and
140.32 	(4) a statement that any long-term care inflation protection option required by section 
140.33 	62S.23 is not available under this policy. 

141.1 	EFFECTIVE DATE. This section is effective July 1, 2006.

141.2 	Sec. 6. Minnesota Statutes 2004, section 62S.13, is amended by adding a subdivision 
141.3 	to read:
141.4 		Subd. 6.Death of insured. In the event of the death of the insured, this section shall 
141.5 	not apply to the remaining death benefit of a life insurance policy that accelerates benefits 
141.6 	for long-term care. In this situation, the remaining death benefits under these policies shall 
141.7 	be governed by section 61A.03, subdivision 1, paragraph (c). In all other situations, this 
141.8 	section shall apply to life insurance policies that accelerate benefits for long-term care. 

141.9 	EFFECTIVE DATE. This section is effective July 1, 2006.

141.10 	Sec. 7. Minnesota Statutes 2004, section 62S.14, subdivision 2, is amended to read:
141.11 		Subd. 2.Terms. The terms "guaranteed renewable" and "noncancelable" may not 
141.12 	be used in an individual long-term care insurance policy without further explanatory 
141.13 	language that complies with the disclosure requirements of section  62S.20. The term 
141.14 	"level premium" may only be used when the insurer does not have the right to change 
141.15 	the premium. 

141.16 	EFFECTIVE DATE. This section is effective July 1, 2006.

141.17 	Sec. 8. Minnesota Statutes 2004, section 62S.15, is amended to read:
141.18 	62S.15 AUTHORIZED LIMITATIONS AND EXCLUSIONS.
141.19 	No policy may be delivered or issued for delivery in this state as long-term care 
141.20 	insurance if the policy limits or excludes coverage by type of illness, treatment, medical 
141.21 	condition, or accident, except as follows:
141.22 	(1) preexisting conditions or diseases;
141.23 	(2) mental or nervous disorders; except that the exclusion or limitation of benefits on 
141.24 	the basis of Alzheimer's disease is prohibited;
141.25 	(3) alcoholism and drug addiction;
141.26 	(4) illness, treatment, or medical condition arising out of war or act of war; 
141.27 	participation in a felony, riot, or insurrection; service in the armed forces or auxiliary 
141.28 	units; suicide, attempted suicide, or intentionally self-inflicted injury; or non-fare-paying 
141.29 	aviation; and
141.30 	(5) treatment provided in a government facility unless otherwise required by 
141.31 	law, services for which benefits are available under Medicare or other government 
141.32 	program except Medicaid, state or federal workers' compensation, employer's liability 
142.1 	or occupational disease law, motor vehicle no-fault law; services provided by a member 
142.2 	of the covered person's immediate family; and services for which no charge is normally 
142.3 	made in the absence of insurance; and 
142.4 	(6) expenses for services or items available or paid under another long-term care 
142.5 	insurance or health insurance policy.
142.6 	This subdivision does not prohibit exclusions and limitations by type of provider or 
142.7 	territorial limitations.

142.8 	EFFECTIVE DATE. This section is effective July 1, 2006.

142.9 	Sec. 9. Minnesota Statutes 2004, section 62S.20, subdivision 1, is amended to read:
142.10 		Subdivision 1.Renewability. (a) Individual long-term care insurance policies 
142.11 	must contain a renewability provision that is appropriately captioned, appears on the first 
142.12 	page of the policy, and clearly states the duration, where limited, of renewability and the 
142.13 	duration of the term of coverage for which the policy is issued and for which it may be 
142.14 	renewed that the coverage is guaranteed renewable or noncancelable. This subdivision 
142.15 	does not apply to policies which are part of or combined with life insurance policies 
142.16 	which do not contain a renewability provision and under which the right to nonrenew is 
142.17 	reserved solely to the policyholder.
142.18 	(b) A long-term care insurance policy or certificate, other than one where the insurer 
142.19 	does not have the right to change the premium, shall include a statement that premium 
142.20 	rates may change. 

142.21 	EFFECTIVE DATE. This section is effective July 1, 2006.

142.22 	Sec. 10. Minnesota Statutes 2004, section 62S.24, subdivision 1, is amended to read:
142.23 		Subdivision 1.Required questions. An application form must include the following 
142.24 	questions designed to elicit information as to whether, as of the date of the application, the 
142.25 	applicant has another long-term care insurance policy or certificate in force or whether a 
142.26 	long-term care policy or certificate is intended to replace any other accident and sickness 
142.27 	or long-term care policy or certificate presently in force. A supplementary application 
142.28 	or other form to be signed by the applicant and agent, except where the coverage is sold 
142.29 	without an agent, containing the following questions may be used. If a replacement policy 
142.30 	is issued to a group as defined under section   62S.01, subdivision 15, clause (1), the 
142.31 	following questions may be modified only to the extent necessary to elicit information 
142.32 	about long-term care insurance policies other than the group policy being replaced; 
142.33 	provided, however, that the certificate holder has been notified of the replacement: 
143.1 	(1)  do you have another long-term care insurance policy or certificate in force
143.2 	(including health care service contract or health maintenance organization contract)?;
143.3 	(2) did you have another long-term care insurance policy or certificate in force 
143.4 	during the last 12 months?;
143.5 	(i) if so, with which company?; and
143.6 	(ii) if that policy lapsed, when did it lapse?; and
143.7 	(3) are you covered by Medicaid?; and 
143.8 	(4) do you intend to replace any of your medical or health insurance coverage with 
143.9 	this policy (certificate)?

143.10 	EFFECTIVE DATE. This section is effective July 1, 2006.

143.11 	Sec. 11. Minnesota Statutes 2004, section 62S.24, is amended by adding a subdivision 
143.12 	to read:
143.13 		Subd. 1a.Other health insurance policies sold by agent. Agents shall list all other 
143.14 	health insurance policies they have sold to the applicant that are still in force or were sold 
143.15 	in the past five years and are no longer in force. 

143.16 	EFFECTIVE DATE. This section is effective July 1, 2006.

143.17 	Sec. 12. Minnesota Statutes 2004, section 62S.24, subdivision 3, is amended to read:
143.18 		Subd. 3.Solicitations other than direct response. After determining that a 
143.19 	sale will involve replacement, an insurer, other than an insurer using direct response 
143.20 	solicitation methods or its agent, shall furnish the applicant, before issuance or delivery of 
143.21 	the individual long-term care insurance policy, a notice regarding replacement of accident 
143.22 	and sickness or long-term care coverage. One copy of the notice must be retained by the 
143.23 	applicant and an additional copy signed by the applicant must be retained by the insurer. 
143.24 	The required notice must be provided in the following manner:
143.25 	NOTICE TO APPLICANT REGARDING REPLACEMENT OF
143.26 	INDIVIDUAL ACCIDENT AND SICKNESS OR LONG-TERM 
143.27 	CARE INSURANCE
143.28 	(Insurance company's name and address)
143.29 	SAVE THIS NOTICE! IT MAY BE IMPORTANT TO YOU IN THE FUTURE.
143.30 	According to (your application) (information you have furnished), you intend to 
143.31 	lapse or otherwise terminate existing accident and sickness or long-term care insurance 
143.32 	and replace it with an individual long-term care insurance policy to be issued by (company 
143.33 	name) insurance company. Your new policy provides 30 days within which you may 
143.34 	decide, without cost, whether you desire to keep the policy. For your own information and 
144.1 	protection, you should be aware of and seriously consider certain factors which may affect 
144.2 	the insurance protection available to you under the new policy.
144.3 	You should review this new coverage carefully, comparing it with all accident 
144.4 	and sickness or long-term care insurance coverage you now have, and terminate your 
144.5 	present policy only if, after due consideration, you find that purchase of this long-term 
144.6 	care coverage is a wise decision.
144.7 	STATEMENT TO APPLICANT BY AGENT
144.8 	(BROKER OR OTHER REPRESENTATIVE):
144.9 	(Use additional sheets, as necessary.)
144.10 	I have reviewed your current medical health insurance coverage. I believe the 
144.11 	replacement of insurance involved in this transaction materially improves your position. 
144.12 	My conclusion has taken into account the following considerations, which I call to your 
144.13 	attention:
144.14 	(a) Health conditions which you presently have (preexisting conditions) may not 
144.15 	be immediately or fully covered under the new policy. This could result in denial or 
144.16 	delay in payment of benefits under the new policy, whereas a similar claim might have 
144.17 	been payable under your present policy.
144.18 	(b) State law provides that your replacement policy or certificate may not contain 
144.19 	new preexisting conditions or probationary periods. The insurer will waive any time 
144.20 	periods applicable to preexisting conditions or probationary periods in the new policy (or 
144.21 	coverage) for similar benefits to the extent such time was spent (depleted) under the 
144.22 	original policy.
144.23 	(c)  If you are replacing existing long-term care insurance coverage, you may wish to 
144.24 	secure the advice of your present insurer or its agent regarding the proposed replacement of 
144.25 	your present policy. This is not only your right, but it is also in your best interest to make 
144.26 	sure you understand all the relevant factors involved in replacing your present coverage.
144.27 	(d)  If, after due consideration, you still wish to terminate your present policy and 
144.28 	replace it with new coverage, be certain to truthfully and completely answer all questions 
144.29 	on the application concerning your medical health history. Failure to include all material 
144.30 	medical information on an application may provide a basis for the company to deny any 
144.31 	future claims and to refund your premium as though your policy had never been in force. 
144.32 	After the application has been completed and before you sign it, reread it carefully to be 
144.33 	certain that all information has been properly recorded.
144.34 	........
144.35 	(Signature of Agent, Broker, or Other Representative)
144.36 	(Typed Name and Address of Agency or Broker)
144.37 	The  above "Notice to Applicant" was delivered to me on:

145.1		........
	
145.2		(Date)
	
145.3		........
	
145.4		(Applicant's Signature)

145.5 	EFFECTIVE DATE. This section is effective July 1, 2006.

145.6 	Sec. 13. Minnesota Statutes 2004, section 62S.24, subdivision 4, is amended to read:
145.7 		Subd. 4.Direct response solicitations. Insurers using direct response solicitation 
145.8 	methods shall deliver a notice regarding replacement of long-term care coverage to 
145.9 	the applicant upon issuance of the policy. The required notice must be provided in the 
145.10 	following manner:
145.11 	NOTICE TO APPLICANT REGARDING REPLACEMENT OF
145.12 	ACCIDENT AND SICKNESS OR 
145.13 	LONG-TERM CARE INSURANCE
145.14 	(Insurance  company's name and address)
145.15 	SAVE THIS NOTICE! IT MAY BE
145.16 	IMPORTANT TO YOU IN THE FUTURE.
145.17 	According to (your application) (information you have furnished), you intend to 
145.18 	lapse or otherwise terminate existing accident and sickness or long-term care insurance 
145.19 	and replace it with the long-term care insurance policy delivered herewith issued by 
145.20 	(company name) insurance company.
145.21 	Your new policy provides 30 days within which you may decide, without cost, 
145.22 	whether you desire to keep the policy. For your own information and protection, you 
145.23 	should be aware of and seriously consider certain factors which may affect the insurance 
145.24 	protection available to you under the new policy.
145.25 	You should review this new coverage carefully, comparing it with all long-term care 
145.26 	insurance coverage you now have, and terminate your present policy only if, after due 
145.27 	consideration, you find that purchase of this long-term care coverage is a wise decision.
145.28 	(a) Health conditions which you presently have (preexisting conditions) may not 
145.29 	be immediately or fully covered under the new policy. This could result in denial or 
145.30 	delay in payment of benefits under the new policy, whereas a similar claim might have 
145.31 	been payable under your present policy.
145.32 	(b) State law provides that your replacement policy or certificate may not contain 
145.33 	new preexisting conditions or probationary periods. Your insurer will waive any time 
145.34 	periods applicable to preexisting conditions or probationary periods in the new policy (or 
146.1 	coverage) for similar benefits to the extent such time was spent (depleted) under the 
146.2 	original policy.
146.3 	(c) If you are replacing existing long-term care insurance coverage, you may wish to 
146.4 	secure the advice of your present insurer or its agent regarding the proposed replacement of 
146.5 	your present policy. This is not only your right, but it is also in your best interest to make 
146.6 	sure you understand all the relevant factors involved in replacing your present coverage.
146.7 	(d) (To be included only if the application is attached to the policy.)
146.8 	If,  after due consideration, you still wish to terminate your present policy and replace 
146.9 	it with new coverage, read the copy of the application attached to your new policy and be 
146.10 	sure that all questions are answered fully and correctly. Omissions or misstatements in 
146.11 	the application could cause an otherwise valid claim to be denied. Carefully check the 
146.12 	application and write to (company name and address) within 30 days if any information is 
146.13 	not correct and complete, or if any past medical history has been left out of the application.

146.14		........
	
146.15		(Company Name)

146.16 	EFFECTIVE DATE. This section is effective July 1, 2006.

146.17 	Sec. 14. Minnesota Statutes 2004, section 62S.24, is amended by adding a subdivision 
146.18 	to read:
146.19 		Subd. 7.Life insurance policies. Life insurance policies that accelerate benefits for 
146.20 	long-term care shall comply with this section if the policy being replaced is a long-term 
146.21 	care insurance policy. If the policy being replaced is a life insurance policy, the insurer 
146.22 	shall comply with the replacement requirements of sections 61A.53 to 61A.60. If a 
146.23 	life insurance policy that accelerates benefits for long-term care is replaced by another 
146.24 	such policy, the replacing insurer shall comply with both the long-term care and the life 
146.25 	insurance replacement requirements. 

146.26 	EFFECTIVE DATE. This section is effective July 1, 2006.

146.27 	Sec. 15.  Minnesota Statutes 2004, section 62S.24, is amended by adding a subdivision 
146.28 	to read:
146.29 		Subd. 8.Exchange for long-term care partnership policy; addition of policy 
146.30 	rider. (a) If authorized by federal law  or a federal waiver is granted with respect to the 
146.31 	long-term care partnership program referenced in section 256B.0571, issuers of long-term 
146.32 	care policies may voluntarily exchange a current long-term care insurance policy for a 
146.33 	long-term care partnership policy that meets the requirements of Public Law 109-171, 
147.1 	section 6021, after the effective date of the state plan amendment implementing the 
147.2 	partnership program in this state.
147.3 	(b) If authorized by federal law  or a federal waiver is granted with respect to the 
147.4 	long-term care partnership program referenced in section 256B.0571, allowing an existing 
147.5 	long-term care insurance policy to qualify as a partnership policy by addition of a policy 
147.6 	rider, the issuer of the policy is authorized to add the rider to the policy after the effective 
147.7 	date of the state plan amendment implementing the partnership program in this state.
147.8 	(c) The commissioner, in cooperation with the commissioner of human services, 
147.9 	shall pursue any federal law changes or waivers necessary to allow the implementation 
147.10 	of paragraphs (a) and (b).

147.11 	EFFECTIVE DATE. This section is effective July 1, 2006.

147.12 	Sec. 16. Minnesota Statutes 2004, section 62S.25, subdivision 6, is amended to read:
147.13 		Subd. 6.Claims denied. Each insurer shall report annually by June 30 the number 
147.14 	of claims denied for any reason during the reporting period for each class of business, 
147.15 	expressed as a percentage of claims denied, other than claims denied for failure to meet 
147.16 	the waiting period or because of any applicable preexisting condition. For purposes of 
147.17 	this subdivision, "claim" means a request for payment of benefits under an in-force policy 
147.18 	regardless of whether the benefit claimed is covered under the policy or any terms or 
147.19 	conditions of the policy have been met. 

147.20 	EFFECTIVE DATE. This section is effective July 1, 2006.

147.21 	Sec. 17. Minnesota Statutes 2004, section 62S.25, is amended by adding a subdivision 
147.22 	to read:
147.23 		Subd. 7.Reports.  Reports under this section shall be done on a statewide basis and 
147.24 	filed with the commissioner. They shall include, at a minimum, the information in the 
147.25 	format contained in Appendix E (Claim Denial Reporting Form) and in Appendix G 
147.26 	(Replacement and Lapse Reporting Form) of the Long-Term Care Model Regulation 
147.27 	adopted by the National Association of Insurance Commissioners. 

147.28 	EFFECTIVE DATE. This section is effective July 1, 2006.

147.29 	Sec. 18. Minnesota Statutes 2004, section 62S.26, is amended to read:
147.30 	62S.26 LOSS RATIO.
148.1 		Subdivision 1.Minimum loss ratio. (a) The minimum loss ratio must be at least 60 
148.2 	percent, calculated in a manner which provides for adequate reserving of the long-term 
148.3 	care insurance risk. In evaluating the expected loss ratio, the commissioner shall give 
148.4 	consideration to all relevant factors, including:
148.5 	(1) statistical credibility of incurred claims experience and earned premiums;
148.6 	(2) the period for which rates are computed to provide coverage;
148.7 	(3) experienced and projected trends;
148.8 	(4) concentration of experience within early policy duration;
148.9 	(5) expected claim fluctuation;
148.10 	(6) experience refunds, adjustments, or dividends;
148.11 	(7) renewability features;
148.12 	(8) all appropriate expense factors;
148.13 	(9) interest;
148.14 	(10) experimental nature of the coverage;
148.15 	(11) policy reserves;
148.16 	(12) mix of business by risk classification; and
148.17 	(13) product features such as long elimination periods, high deductibles, and high 
148.18 	maximum limits.
148.19 		Subd. 2.Life insurance policies. Subdivision 1 shall not apply to life insurance 
148.20 	policies that accelerate benefits for long-term care. A life insurance policy that funds 
148.21 	long-term care benefits entirely by accelerating the death benefit is considered to provide 
148.22 	reasonable benefits in relation to premiums paid, if the policy complies with all of the 
148.23 	following provisions:
148.24 	(1) the interest credited internally to determine cash value accumulations, including 
148.25 	long-term care, if any, are guaranteed not to be less than the minimum guaranteed interest 
148.26 	rate for cash value accumulations without long-term care set forth in the policy;
148.27 	(2) the portion of the policy that provides life insurance benefits meets the 
148.28 	nonforfeiture requirements of section 61A.24;
148.29 	(3) the policy meets the disclosure requirements of sections 62S.09, 62S.10, and 
148.30 	62S.11; and 
148.31 	(4) an actuarial memorandum is filed with the insurance department that includes:
148.32 	(i) a description of the basis on which the long-term care rates were determined;
148.33 	(ii) a description of the basis for the reserves;
148.34 	(iii) a summary of the type of policy, benefits, renewability, general marketing 
148.35 	method, and limits on ages of issuance;
149.1 	(iv) a description and a table of each actuarial assumption used. For expenses, 
149.2 	an insurer must include percentage of premium dollars per policy and dollars per unit 
149.3 	of benefits, if any;
149.4 	(v) a description and a table of the anticipated policy reserves and additional reserves 
149.5 	to be held in each future year for active lives;
149.6 	(vi) the estimated average annual premium per policy and the average issue age;
149.7 	(vii) a statement as to whether underwriting is performed at the time of application. 
149.8 	The statement shall indicate whether underwriting is used and, if used, the statement 
149.9 	shall include a description of the type or types of underwriting used, such as medical 
149.10 	underwriting or functional assessment underwriting. Concerning a group policy, the 
149.11 	statement shall indicate whether the enrollee or any dependent will be underwritten and 
149.12 	when underwriting occurs; and
149.13 	(viii) a description of the effect of the long-term care policy provision on the required 
149.14 	premiums, nonforfeiture values, and reserves on the underlying life insurance policy, both 
149.15 	for active lives and those in long-term care claim status. 
149.16 		Subd. 3.Nonapplication.  (b) This section does not apply to policies or certificates 
149.17 	that are subject to sections  62S.021,  62S.081, and  62S.265, and that comply with those 
149.18 	sections. 

149.19 	EFFECTIVE DATE. This section is effective July 1, 2006.

149.20 	Sec. 19. Minnesota Statutes 2004, section 62S.266, subdivision 2, is amended to read:
149.21 		Subd. 2.Requirement. (a) An insurer must offer each prospective policyholder a 
149.22 	nonforfeiture benefit in compliance with the following requirements:
149.23 	(1) a policy or certificate offered with nonforfeiture benefits must have coverage 
149.24 	elements, eligibility, benefit triggers, and benefit length that are the same as coverage to be 
149.25 	issued without nonforfeiture benefits. The nonforfeiture benefit included in the offer must 
149.26 	be the benefit described in subdivision 5; and
149.27 	(2)  the offer must be in writing if the nonforfeiture benefit is not otherwise described 
149.28 	in the outline of coverage or other materials given to the prospective policyholder.
149.29 	(b) When a group long-term care insurance policy is issued, the offer required in 
149.30 	paragraph (a) shall be made to the group policy holder. However, if the policy is issued as 
149.31 	group long-term care insurance as defined in section 62S.01, subdivision 15, clause (4), 
149.32 	other than to a continuing care retirement community or other similar entity, the offering 
149.33 	shall be made to each proposed certificate holder. 

149.34 	EFFECTIVE DATE. This section is effective July 1, 2006.

150.1 	Sec. 20. Minnesota Statutes 2004, section 62S.29, subdivision 1, is amended to read:
150.2 		Subdivision 1.Requirements. An insurer or other entity marketing long-term care 
150.3 	insurance coverage in this state, directly or through its producers, shall:
150.4 	(1) establish marketing procedures and agent training requirements to assure that a 
150.5 	any marketing activities, including any comparison of policies by its agents or other 
150.6 	producers, are fair and accurate;
150.7 	(2) establish marketing procedures to assure excessive insurance is not sold or issued;
150.8 	(3) display prominently by type, stamp, or other appropriate means, on the first page 
150.9 	of the outline of coverage and policy, the following:
150.10 	"Notice to buyer: This policy may not cover all of the costs associated with 
150.11 	long-term care incurred by the buyer during the period of coverage. The buyer is advised 
150.12 	to review carefully all policy limitations.";
150.13 	(4) provide copies of the disclosure forms required in section 62S.081, subdivision 
150.14 	4, to the applicant; 
150.15 	(5) inquire and otherwise make every reasonable effort to identify whether a 
150.16 	prospective applicant or enrollee for long-term care insurance already has long-term care 
150.17 	insurance and the types and amounts of the insurance;
150.18 	(5)(6) establish auditable procedures for verifying compliance with this subdivision; 
150.19 	and
150.20 	(6)(7) if applicable, provide written notice to the prospective policyholder and 
150.21 	certificate holder, at solicitation, that a senior insurance counseling program approved 
150.22 	by the commissioner is available and the name, address, and telephone number of the 
150.23 	program;
150.24 	(8) use the terms "noncancelable" or "level premium" only when the policy or 
150.25 	certificate conforms to section 62S.14; and 
150.26 	(9) provide an explanation of contingent benefit upon lapse provided for in section 
150.27 	62S.266.

150.28 	EFFECTIVE DATE. This section is effective July 1, 2006.

150.29 	Sec. 21. Minnesota Statutes 2004, section 62S.30, is amended to read:
150.30 	62S.30 APPROPRIATENESS OF RECOMMENDED PURCHASE
150.31 	SUITABILITY.
150.32 	In recommending the purchase or replacement of a long-term care insurance policy 
150.33 	or certificate, an agent shall comply with section  60K.46, subdivision 4. 
151.1 		Subdivision 1. Standards. Every insurer or other entity marketing long-term care 
151.2 	insurance shall:
151.3 	(1) develop and use suitability standards to determine whether the purchase or 
151.4 	replacement of long-term care insurance is appropriate for the needs of the applicant; 
151.5 	(2) train its agents in the use of its suitability standards; and 
151.6 	(3) maintain a copy of its suitability standards and make them available for 
151.7 	inspection upon request by the commissioner.
151.8 		Subd. 2.Procedures. (a) To determine whether the applicant meets the standards 
151.9 	developed by the insurer or other entity marketing long-term care insurance, the agent 
151.10 	and insurer or other entity marketing long-term care insurance shall develop procedures 
151.11 	that take the following into consideration:
151.12 	(1) the ability to pay for the proposed coverage and other pertinent financial 
151.13 	information related to the purchase of the coverage;
151.14 	(2) the applicant's goals or needs with respect to long-term care and the advantages 
151.15 	and disadvantages of insurance to meet those goals or needs; and 
151.16 	(3) the values, benefits, and costs of the applicant's existing insurance, if any, when 
151.17 	compared to the values, benefits, and costs of the recommended purchase or replacement.
151.18 	(b) The insurer or other entity marketing long-term care insurance, and the agent, 
151.19 	where an agent is involved,  shall make reasonable efforts to obtain the information set 
151.20 	forth in paragraph (a). The efforts shall include presentation to the applicant, at or prior 
151.21 	to application, of the "Long-Term Care Insurance Personal Worksheet." The personal 
151.22 	worksheet used by the insurer or other entity marketing long-term care insurance shall 
151.23 	contain, at a minimum, the information in the format contained in Appendix B of the 
151.24 	Long-Term Care Model Regulation adopted by the National Association of Insurance 
151.25 	Commissioners, in not less than 12-point type. The insurer or other entity marketing 
151.26 	long-term care insurance may request the applicant to provide additional information to 
151.27 	comply with its suitability standards. The insurer or other entity marketing long-term care 
151.28 	insurance shall file a copy of its personal worksheet with the commissioner. 
151.29 	(c) A completed personal worksheet shall be returned to the insurer or other entity 
151.30 	marketing long-term care insurance prior to consideration of the applicant for coverage, 
151.31 	except the personal worksheet need not be returned for sales of employer group long-term 
151.32 	care insurance to employees and their spouses. The sale or dissemination by the insurer 
151.33 	or other entity marketing long-term care insurance, or the agent, of information obtained 
151.34 	through the personal worksheet, is prohibited. 
151.35 	(d) The insurer or other entity marketing long-term care insurance shall use the 
151.36 	suitability standards it has developed under this section in determining whether issuing 
152.1 	long-term care insurance coverage to an applicant is appropriate. Agents shall use the 
152.2 	suitability standards developed by the insurer or other entity marketing long-term care 
152.3 	insurance in marketing long-term care insurance. 
152.4 	(e) At the same time as the personal worksheet is provided to the applicant, the 
152.5 	disclosure form entitled "Things You Should Know Before You Buy Long-Term Care 
152.6 	Insurance" shall be provided. The form shall be in the format contained in Appendix C of 
152.7 	the Long-Term Care Insurance Model Regulation adopted by the National Association of 
152.8 	Insurance Commissioners in not less than 12-point type. 
152.9 	(f) If the insurer or other entity marketing long-term care insurance determines 
152.10 	that the applicant does not meet its financial suitability standards, or if the applicant has 
152.11 	declined to provide the information, the insurer or other entity marketing long-term 
152.12 	care insurance may reject the application. In the alternative, the insurer or other entity 
152.13 	marketing long-term care insurance shall send the applicant a letter similar to Appendix D 
152.14 	of the Long-Term Care Insurance Model Regulation adopted by the National Association 
152.15 	of Insurance Commissioners. However, if the applicant has declined to provide financial 
152.16 	information, the insurer or other entity marketing long-term care insurance may use some 
152.17 	other method to verify the applicant's intent. The applicant's returned letter or a record of 
152.18 	the alternative method of verification shall be made part of the applicant's file. 
152.19 		Subd. 3.Reports. The insurer or other entity marketing long-term care insurance 
152.20 	shall report annually to the commissioner the total number of applications received from 
152.21 	residents of this state, the number of those who declined to provide information on the 
152.22 	personal worksheet, the number of applicants who did not meet the suitability standards, 
152.23 	and the number of those who chose to confirm after receiving a suitability letter. 
152.24 		Subd. 4.Application. This section shall not apply to life insurance policies that 
152.25 	accelerate benefits for long-term care. 

152.26 	EFFECTIVE DATE. This section is effective July 1, 2006.

152.27 	Sec. 22. [62S.315] PRODUCER TRAINING.
152.28 	The commissioner shall approve producer training requirements in accordance with 
152.29 	the NAIC Long-Term Care Insurance Model Act provisions. The commissioner of the 
152.30 	Department of Human Services shall provide technical assistance and information to the 
152.31 	commissioner in accordance with Public Law 109-171, section 6021.

152.32 	EFFECTIVE DATE. This section is effective July 1, 2006.

152.33 	Sec. 23. Minnesota Statutes 2004, section 144.6501, subdivision 6, is amended to read:
153.1 		Subd. 6.Medical assistance payment. (a) An admission contract for a facility that 
153.2 	is certified for participation in the medical assistance program must state that neither the 
153.3 	prospective resident, nor anyone on the resident's behalf, is required to pay privately any 
153.4 	amount for which the resident's care at the facility has been approved for payment by 
153.5 	medical assistance or to make any kind of donation, voluntary or otherwise. Except as 
153.6 	permitted under section 6015 of the Deficit Reduction Act of 2005, Public Law 109-171, 
153.7 	an admission contract must state that the facility does not require as a condition of 
153.8 	admission, either in its admission contract or by oral promise before signing the admission 
153.9 	contract, that residents remain in private pay status for any period of time.
153.10 	(b) The admission contract must state that upon presentation of proof of eligibility, 
153.11 	the facility will submit a medical assistance claim for reimbursement and will return any 
153.12 	and all payments made by the resident, or by any person on the resident's behalf, for 
153.13 	services covered by medical assistance, upon receipt of medical assistance payment.
153.14 	(c) A facility that participates in the medical assistance program shall not charge for 
153.15 	the day of the resident's discharge from the facility or subsequent days.
153.16 	(d) If a facility's charges incurred by the resident are delinquent for 30 days, and 
153.17 	no person has agreed to apply for medical assistance for the resident, the facility may 
153.18 	petition the court under chapter 525 to appoint a representative for the resident in order to 
153.19 	apply for medical assistance for the resident.
153.20 	(e) The remedy provided in this subdivision does not preclude a facility from seeking 
153.21 	any other remedy available under other laws of this state.

153.22 	Sec. 24. Minnesota Statutes 2004, section 256B.02, subdivision 9, is amended to read:
153.23 		Subd. 9.Private health care coverage. "Private health care coverage" means any 
153.24 	plan regulated by chapter 62A, 62C or 64B. Private health care coverage also includes 
153.25 	any self-insuranceself-insured plan providing health care benefits, pharmacy benefit 
153.26 	manager, service benefit plan, managed care organization, and other parties that are by 
153.27 	contract legally responsible for payment of a claim for a health care item or service for an 
153.28 	individual receiving medical benefits under chapter 256B, 256D, or 256L.

153.29 	Sec. 25. Minnesota Statutes 2004, section 256B.056, subdivision 2, is amended to read:
153.30 		Subd. 2.Homestead; exclusion  and homestead equity limit for institutionalized 
153.31 	persons. (a) The homestead shall be excluded for the first six calendar months of a 
153.32 	person's stay in a long-term care facility and shall continue to be excluded for as long as 
153.33 	the recipient can be reasonably expected to return to the homestead. For purposes of 
153.34 	this subdivision, "reasonably expected to return to the homestead" means the recipient's 
154.1 	attending physician has certified that the expectation is reasonable, and the recipient can 
154.2 	show that the cost of care upon returning home will be met through medical assistance 
154.3 	or other sources. The homestead shall continue to be excluded for persons residing in 
154.4 	a long-term care facility if it is used as a primary residence by one of the following 
154.5 	individuals:
154.6 	(a) (1) the spouse;
154.7 	(b) (2) a child under age 21;
154.8 	(c) (3) a child of any age who is blind or permanently and totally disabled as defined 
154.9 	in the supplemental security income program;
154.10 	(d) (4) a sibling who has equity interest in the home and who resided in the home for 
154.11 	at least one year immediately before the date of the person's admission to the facility; or
154.12 	(e) (5) a child of any age, or, subject to federal approval, a grandchild of any age, 
154.13 	who resided in the home for at least two years immediately before the date of the person's 
154.14 	admission to the facility, and who provided care to the person that permitted the person to 
154.15 	reside at home rather than in an institution.
154.16 	(b) Effective for applications filed on or after July 1, 2006, and for renewals after 
154.17 	July 1, 2006, for persons who first applied for payment of long-term care services on 
154.18 	or after January 2, 2006, the equity interest in the homestead of an individual whose 
154.19 	eligibility for long-term care services is determined on or after January 1, 2006, shall not 
154.20 	exceed $500,000, unless it is the lawful residence of the individual's spouse or child 
154.21 	who is under age 21, blind, or disabled. The amount specified in this paragraph shall be 
154.22 	increased beginning in year 2011, from year to year based on the percentage increase in 
154.23 	the Consumer Price Index for all urban consumers (all items; United States city average), 
154.24 	rounded to the nearest $1,000. This provision may be waived in the case of demonstrated 
154.25 	hardship by a process to be determined by the secretary of health and human services 
154.26 	pursuant to section 6014 of the Deficit Reduction Act of 2005, Public Law 109-171.

154.27 	Sec. 26. Minnesota Statutes 2004, section 256B.056, is amended by adding a 
154.28 	subdivision to read:
154.29 		Subd. 3e.Treatment of continuing care retirement and life care community 
154.30 	entrance fees. An entrance fee paid by an individual to a continuing care retirement or 
154.31 	life care community shall be treated as an available asset to the extent that:
154.32 	(1) the individual has the ability to use the entrance fee, or the contract provides that 
154.33 	the entrance fee may be used, to pay for care should other resources or income of the 
154.34 	individual be insufficient to pay for care;
155.1 	(2) the individual is eligible for a refund of any remaining entrance fees when 
155.2 	the individual dies or terminates the continuing care retirement or life care community 
155.3 	contract and leaves the community; and
155.4 	(3) the entrance fee does not confer an ownership interest in the continuing care 
155.5 	retirement or life care community.

155.6 	Sec. 27. Minnesota Statutes 2004, section 256B.056, is amended by adding a 
155.7 	subdivision to read:
155.8 		Subd. 11.Treatment of annuities. (a) Any individual applying for or seeking 
155.9 	recertification of eligibility for medical assistance payment of long-term care services 
155.10 	shall provide a complete description of any interest either the individual or the individual's 
155.11 	spouse has in annuities. The individual and the individual's spouse shall furnish the 
155.12 	agency responsible for determining eligibility with complete current copies of their 
155.13 	annuities and related documents for review as part of the application process on disclosure 
155.14 	forms provided by the department as part of their application.
155.15 	(b) The disclosure form shall include a statement that the department becomes the 
155.16 	remainder beneficiary under the annuity or similar financial instrument by virtue of the 
155.17 	receipt of medical assistance. The disclosure form shall include a notice to the issuer of 
155.18 	the department's right under this section as a preferred remainder beneficiary under the 
155.19 	annuity or similar financial instrument for medical assistance furnished to the individual 
155.20 	or the individual's spouse, and require the issuer to provide confirmation that a remainder 
155.21 	beneficiary designation has been made and to notify the county agency when there is a 
155.22 	change in the amount of the income or principal being withdrawn from the annuity or 
155.23 	other similar financial instrument at the time of the most recent disclosure required under 
155.24 	this section. The individual and the individual's spouse shall execute separate disclosure 
155.25 	forms for each annuity or similar financial instrument that they are required to disclose 
155.26 	under this section and in which they have an interest.
155.27 	(c) An issuer of an annuity or similar financial instrument who receives notice on a 
155.28 	disclosure form as described in paragraph (b) shall provide confirmation to the requesting 
155.29 	agency that a remainder beneficiary designating the state has been made and shall notify 
155.30 	the county agency when there is a change in the amount of income or principal being 
155.31 	withdrawn from the annuity or other similar financial instrument. The county agency shall 
155.32 	provide the issuer with the name, address, and telephone number of a unit within the 
155.33 	department that the issuer can contact to comply with this paragraph.

156.1 	Sec. 28. Minnesota Statutes 2005 Supplement, section 256B.0571, is amended to read:
156.2 	256B.0571 LONG-TERM CARE PARTNERSHIP PROGRAM.
156.3 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
156.4 	the meanings given them.
156.5 		Subd. 2.Home care service. "Home care service" means care described in section 
156.6 	144A.43.
156.7 		Subd. 3.Long-term care insurance. "Long-term care insurance" means a policy 
156.8 	described in section 62S.01.
156.9 		Subd. 4.Medical assistance. "Medical assistance" means the program of medical 
156.10 	assistance established under section 256B.01.
156.11 		Subd. 5.Nursing home. "Nursing home" means a nursing home as described 
156.12 	in section 144A.01.
156.13 		Subd. 6.Partnership policy. "Partnership policy" means a long-term care insurance 
156.14 	policy that meets the requirements under subdivision 10 or 11, regardless of when the 
156.15 	policy and was first issued on or after the effective date of the state plan amendment 
156.16 	implementing the partnership program in Minnesota.
156.17 		Subd. 7.Partnership program. "Partnership program" means the Minnesota 
156.18 	partnership for long-term care program established under this section.
156.19 		Subd. 7a.Protected assets. "Protected assets" means assets or proceeds of assets 
156.20 	that are protected from recovery under subdivisions 13 and 15.
156.21 		Subd. 8.Program established. (a) The commissioner, in cooperation with the 
156.22 	commissioner of commerce, shall establish the Minnesota partnership for long-term care 
156.23 	program to provide for the financing of long-term care through a combination of private 
156.24 	insurance and medical assistance.
156.25 	(b) An individual who meets the requirements in this paragraph is eligible to 
156.26 	participate in the partnership program. The individual must:
156.27 	(1) be a Minnesota resident at the time coverage first became effective under the 
156.28 	partnership policy;
156.29 	(2) purchase a partnership policy that is delivered, issued for delivery, or renewed on 
156.30 	or after the effective date of Laws 2005, First Special Session chapter 4, article 7, section 
156.31 	5, and maintain the partnership policy in effect throughout the period of participation 
156.32 	in the partnership program be a beneficiary of a partnership policy that (i) is issued on 
156.33 	or after the effective date of the state plan amendment implementing the partnership 
156.34 	program in Minnesota, or (ii) qualifies as a partnership policy under the provisions of 
156.35 	subdivision 8a; and
157.1 	(3) exhaust the minimumhave exhausted all of the benefits under the partnership 
157.2 	policy as described in this section. Benefits received under a long-term care insurance 
157.3 	policy before the effective date of Laws 2005, First Special Session chapter 4, article 7, 
157.4 	section 5 July 1, 2006, do not count toward the exhaustion of benefits required in this 
157.5 	subdivision.
157.6 		Subd. 8a.Exchange for long-term care partnership policy; addition of policy 
157.7 	rider. (a) If authorized by federal law or federal approval is granted with respect to 
157.8 	the partnership program established in this section, a long-term care insurance policy 
157.9 	that was issued before the effective date of the state plan amendment implementing the 
157.10 	partnership program in Minnesota that was exchanged after the effective date of the state 
157.11 	plan amendment for a long-term care partnership policy that meets the requirements of 
157.12 	Public Law 109-171, section 6021, qualifies as a long-term care partnership policy under 
157.13 	this section, unless the policy is paying benefits on the date the policy is exchanged.
157.14 	(b) If authorized by federal law or federal approval is granted with respect to the 
157.15 	partnership program established in this section, a long-term care insurance policy that was 
157.16 	issued before the effective date of the state plan amendment implementing the partnership 
157.17 	program in Minnesota that has a rider added after the effective date of the state plan 
157.18 	amendment that meets the requirements of Public Law 109-171, section 6021, qualifies 
157.19 	as a long-term care partnership policy under this section, unless the policy is paying 
157.20 	benefits on the date the rider is added.
157.21 		Subd. 9.Medical assistance eligibility. (a) Upon application offor medical 
157.22 	assistance program payment of long-term care services by an individual who meets the 
157.23 	requirements described in subdivision 8, the commissioner shall determine the individual's 
157.24 	eligibility for medical assistance according to paragraphs (b) and (c) to (i).
157.25 	(b) After disregarding financialdetermining assets exempted under medical 
157.26 	assistance eligibility requirements subject to the asset limit under section 256B.056, 
157.27 	subdivision 3 or 3c, or section 256B.057, subdivision 9 or 10, the commissioner shall 
157.28 	disregard an additional amount of financial assets equalallow the individual to designate 
157.29 	assets to be protected from recovery under subdivisions 13 and 15 up to the dollar amount 
157.30 	of coveragethe benefits utilized under the partnership policy. Designated assets shall be 
157.31 	disregarded for purposes of determining eligibility for payment of long-term care services.
157.32 	(c) The commissioner shall consider the individual's income according to medical 
157.33 	assistance eligibility requirements. The individual shall identify the designated assets and 
157.34 	the full fair market value of those assets and designate them as assets to be protected at 
157.35 	the time of initial application for medical assistance. The full fair market value of real 
157.36 	property or interests in real property shall be based on the most recent full assessed value 
158.1 	for property tax purposes for the real property, unless the individual provides a complete 
158.2 	professional appraisal by a licensed appraiser to establish the full fair market value. The 
158.3 	extent of a life estate in real property shall be determined using the life estate table in the 
158.4 	health care program's manual. Ownership of any asset in joint tenancy shall be treated as 
158.5 	ownership as tenants in common for purposes of its designation as a disregarded asset. 
158.6 	The unprotected value of any protected asset is subject to estate recovery according to 
158.7 	subdivisions 13 and 15.
158.8 	(d) The right to designate assets to be protected is personal to the individual and 
158.9 	ends when the individual dies, except as otherwise provided in subdivisions 13 and 
158.10 	15. It does not include the increase in the value of the protected asset and the income, 
158.11 	dividends, or profits from the asset. It may be exercised by the individual or by anyone 
158.12 	with the legal authority to do so on the individual's behalf. It shall not be sold, assigned, 
158.13 	transferred, or given away.
158.14 	(e) If the dollar amount of the benefits utilized under a partnership policy is greater 
158.15 	than the full fair market value of all assets protected at the time of the application for 
158.16 	medical assistance long-term care services, the individual may designate additional assets 
158.17 	that become available during the individual's lifetime for protection under this section. 
158.18 	The individual must make the designation in writing to the county agency no later than 
158.19 	the last date on which the individual must report a change in circumstances to the county 
158.20 	agency, as provided for under the medical assistance program. Any excess used for this 
158.21 	purpose shall not be available to the individual's estate to protect assets in the estate from 
158.22 	recovery under section 256B.15 or 524.3-1202, or otherwise.
158.23 	(f) This section applies only to estate recovery under United States Code, title 42, 
158.24 	section 1396p, subsections (a) and (b), and does not apply to recovery authorized by other 
158.25 	provisions of federal law, including, but not limited to, recovery from trusts under United 
158.26 	States Code, title 42, section 1396p, subsection (d)(4)(A) and (C), or to recovery from 
158.27 	annuities, or similar legal instruments, subject to section 6012, subsections (a) and (b), of 
158.28 	the Deficit Reduction Act of 2005, Public Law 109-171.
158.29 	(g) An individual's protected assets owned by the individual's spouse who applies 
158.30 	for payment of medical assistance long-term care services shall not be protected assets or 
158.31 	disregarded for purposes of eligibility of the individual's spouse solely because they were 
158.32 	protected assets of the individual.
158.33 	(h) Assets designated under this subdivision shall not be subject to penalty under 
158.34 	section 256B.0595.
159.1 	(i) The commissioner shall otherwise determine the individual's eligibility 
159.2 	for payment of long-term care services according to medical assistance eligibility 
159.3 	requirements.
159.4 		Subd. 10.Dollar-for-dollar asset protection policies Long-term care partnership 
159.5 	policy inflation protection. (a) A dollar-for-dollar asset protection policy must meet all 
159.6 	of the requirements in paragraphs (b) to (e).
159.7 	(b) The policy must satisfy the requirements of chapter 62S.
159.8 	(c) The policy must offer an elimination period of not more than 180 days for an 
159.9 	adjusted premium.
159.10 	(d) The policy must satisfy the requirements established by the commissioner of 
159.11 	human services under subdivision 14.
159.12 	(e) Minimum daily benefits shall be $130 for nursing home care or $65 for home 
159.13 	care, with inflation protection provided in the policy as described in section 62S.23, 
159.14 	subdivision 1, clause (1). These minimum daily benefit amounts shall be adjusted by the 
159.15 	commissioner on October 1 of each year by a percentage equal to the inflation protection 
159.16 	feature described in section 62S.23, subdivision 1, clause (1), for purposes of setting 
159.17 	minimum requirements that a policy must meet in future years in order to initially qualify 
159.18 	as an approved policy under this subdivision. Adjusted minimum daily benefit amounts 
159.19 	shall be rounded to the nearest whole dollar.
159.20 	A long-term care partnership policy must provide the inflation protection described 
159.21 	in this paragraph. If the policy is sold to an individual who:
159.22 	(1) has not attained age 61 as of the date of purchase, the policy must provide 
159.23 	compound annual inflation protection;
159.24 	(2) has attained age 61, but has not attained age 76 as of such date, the policy must 
159.25 	provide some level of inflation protection; and 
159.26 	(3) has attained age 76 as of such date, the policy may, but is not required to, provide 
159.27 	some level of inflation protection.
159.28 		Subd. 11.Total asset protection policies. (a) A total asset protection policy must 
159.29 	meet all of the requirements in subdivision 10, paragraphs (b) to (d), and this subdivision.
159.30 	(b) Minimum coverage shall be for a period of not less than three years and for a 
159.31 	dollar amount equal to 36 months of nursing home care at the minimum daily benefit rate 
159.32 	determined and adjusted under paragraph (c).
159.33 	(c) Minimum daily benefits shall be $150 for nursing home care or $75 for home 
159.34 	care, with inflation protection provided in the policy as described in section 62S.23, 
159.35 	subdivision 1, clause (1). These minimum daily benefit amounts shall also be adjusted 
159.36 	by the commissioner on October 1 of each year by a percentage equal to the inflation 
160.1 	protection feature described in section 62S.23, subdivision 1, clause (1), for purposes of 
160.2 	setting minimum requirements that a policy must meet in future years in order to initially 
160.3 	qualify as an approved policy under this subdivision. Adjusted minimum daily benefit 
160.4 	amounts shall be rounded to the nearest whole dollar.
160.5 	(d) The policy must cover all of the following services:
160.6 	(1) nursing home stay;
160.7 	(2) home care service; and
160.8 	(3) care management.
160.9 		Subd. 12.Compliance with federal law. An issuer of a partnership policy must 
160.10 	comply with any federal law authorizing partnership policies in Minnesota Public Law 
160.11 	109-171, section 6021, including any federal regulations, as amended, adopted under that 
160.12 	law. This subdivision does not require compliance with any provision of this federal 
160.13 	law until the date upon which the law requires compliance with the provision. The 
160.14 	commissioner has authority to enforce this subdivision.
160.15 		Subd. 13.Limitations on estate recovery. (a) For an individual who exhausts the 
160.16 	minimum benefits of adollar-for-dollar asset protectionpolicy under subdivision 10, and 
160.17 	is determined eligible for medical assistance under subdivision 9, the state shall limit 
160.18 	recovery under the provisions of section 256B.15 against the estate of the individual 
160.19 	or individual's spouse for medical assistance benefits received by that individual to an 
160.20 	amount that exceeds the dollar amount of coverage utilized under the partnership policy.
160.21 	Protected assets of the individual shall not be subject to recovery under section 256B.15 
160.22 	or 524.3-1201 for medical assistance or alternative care paid on behalf of the individual. 
160.23 	Protected assets of the individual in the estate of the individual's surviving spouse shall 
160.24 	not be liable to pay a claim for recovery of medical assistance paid for the predeceased 
160.25 	individual that is filed in the estate of the surviving spouse under section 256B.15. 
160.26 	Protected assets of the individual shall not be protected assets in the surviving spouse's 
160.27 	estate by reason of the preceding sentence and shall be subject to recovery under section 
160.28 	256B.15 or 524.3-1201 for medical assistance paid on behalf of the surviving spouse.
160.29 	(b) For an individual who exhausts the minimum benefits of a total asset protection 
160.30 	policy under subdivision 11, and is determined eligible for medical assistance under 
160.31 	subdivision 9, the state shall not seek recovery under the provisions of section 256B.15
160.32 	against the estate of the individual or individual's spouse for medical assistance benefits 
160.33 	received by that individual. The personal representative may protect the full fair market 
160.34 	value of an individual's unprotected assets in the individual's estate in an amount equal 
160.35 	to the unused amount of asset protection the individual had on the date of death. The 
160.36 	personal representative shall apply the asset protection so that the full fair market value of 
161.1 	any unprotected asset in the estate is protected. When or if the asset protection available 
161.2 	to the personal representative is or becomes less than the full fair market value of any 
161.3 	remaining unprotected asset, it shall be applied to partially protect one unprotected asset.
161.4 	(c) The asset protection described in paragraph (a) terminates with respect to an asset 
161.5 	includable in the individual's estate under chapter 524 or section 256B.15:
161.6 	(1) when the estate distributes the asset; or
161.7 	(2) if the estate of the individual has not been probated within one year from the 
161.8 	date of death.
161.9 	(d) If an individual owns a protected asset on the date of death and the estate is 
161.10 	opened for probate more than one year after death, the state or a county agency may file 
161.11 	and collect claims in the estate under section 256B.15, and no statute of limitations in 
161.12 	chapter 524 that would otherwise limit or bar the claim shall apply.
161.13 	(e) Except as otherwise provided, nothing in this section shall limit or prevent 
161.14 	recovery of medical assistance.
161.15 		Subd. 14.Implementation. (a) If federal law is amended or a federal waiver is 
161.16 	granted to permit implementation of this section, the commissioner, in consultation with 
161.17 	the commissioner of commerce, may alter the requirements of subdivisions 10 and 11, 
161.18 	and may establish additional requirements for approved policies in order to conform with 
161.19 	federal law or waiver authority. In establishing these requirements, the commissioner shall 
161.20 	seek to maximize purchase of qualifying policies by Minnesota residents while controlling 
161.21 	medical assistance costs.
161.22 	(b) The commissioner is authorized to suspend implementation of this section 
161.23 	until the next session of the legislature if the commissioner, in consultation with the 
161.24 	commissioner of commerce, determines that the federal legislation or federal waiver 
161.25 	authorizing a partnership program in Minnesota is likely to impose substantial unforeseen 
161.26 	costs on the state budget.
161.27 	(c) The commissioner must take action under paragraph (a) or (b) within 45 days of 
161.28 	final federal action authorizing a partnership policy in Minnesota.
161.29 	(d) The commissioner must notify the appropriate legislative committees of 
161.30 	action taken under this subdivision within 50 days of final federal action authorizing a 
161.31 	partnership policy in Minnesota.
161.32 	(e) The commissioner must publish a notice in the State Register of implementation 
161.33 	decisions made under this subdivision as soon as practicable. (a) The commissioner, in 
161.34 	cooperation with the commissioner of commerce, may alter the requirements of this 
161.35 	section so as to be in compliance with forthcoming requirements of the federal Department 
161.36 	of Health and Human Services and the National Association of Insurance Commissioners 
162.1 	necessary to implement the long-term care partnership program requirements of Public 
162.2 	Law 109-171, section 6021.
162.3 	(b) The commissioner shall submit a state plan amendment to the federal government 
162.4 	to implement the long-term care partnership program in accordance with this section.
162.5 		Subd. 15.Limitation on liens. (a) An individual's interest in real property shall 
162.6 	not be subject to a medical assistance lien or a notice of potential claim while and to the 
162.7 	extent it is protected under subdivision 9.
162.8 	(b) Medical assistance liens or liens arising under notices of potential claims against 
162.9 	an individual's interests in real property in the individual's estate that are designated as 
162.10 	protected under subdivision 13, paragraph (b), shall be released to the extent of the dollar 
162.11 	value of the protection applied to the interest.
162.12 	(c) If an interest in real property is protected from a lien for recovery of medical 
162.13 	assistance paid on behalf of the individual under paragraph (a) or (b), no  lien for recovery 
162.14 	of medical assistance paid on behalf of that individual shall be filed against the protected 
162.15 	interest in real property after it is distributed to the individual's heirs or devisees.
162.16 		Subd. 16.Burden of proof. Any individual or the personal representative of the 
162.17 	individual's estate who asserts that an asset is a disregarded or protected asset under 
162.18 	this section in connection with any determination of eligibility for benefits under the 
162.19 	medical assistance program or any appeal, case, controversy, or other proceedings, shall 
162.20 	have the initial burden of:
162.21 	(1) documenting and proving by clear and convincing evidence that the asset or 
162.22 	source of funds for the asset in question was designated as disregarded or protected;
162.23 	(2) tracing the asset and the proceeds of the asset from that time forward; and 
162.24 	(3) documenting that the asset or proceeds of the asset remained disregarded or 
162.25 	protected at all relevant times.

162.26 	EFFECTIVE DATE. This section is effective July 1, 2006.

162.27 	Sec. 29. [256B.0594] PAYMENT OF BENEFITS FROM AN ANNUITY.
162.28 	When payment becomes due under an annuity that names the department a 
162.29 	remainder beneficiary as described in section 256B.056, subdivision 11, the issuer shall 
162.30 	request and the department shall, within 45 days after receipt of the request, provide a 
162.31 	written statement of the total amount of the medical assistance paid. Upon timely receipt 
162.32 	of the written statement of the amount of medical assistance paid, the issuer shall pay the 
162.33 	department an amount equal to the lesser of the amount due the department under the 
162.34 	annuity or the total amount of medical assistance paid on behalf of the individual or the 
162.35 	individual's spouse. Any amounts remaining after the issuer's payment to the department 
163.1 	shall be payable according to the terms of the annuity or similar financial instrument. The 
163.2 	county agency or the department shall provide the issuer with the name, address, and 
163.3 	telephone number of a unit within the department the issuer can contact to comply with this 
163.4 	section. The requirements of section 72A.201, subdivision 4, clause (3), shall not apply to 
163.5 	payments made under this section until the issuer has received final payment information 
163.6 	from the department, if the issuer has notified the beneficiary of the requirements of this 
163.7 	section at the time it initially requests payment information from the department.

163.8 	Sec. 30. Minnesota Statutes 2004, section 256B.0595, subdivision 1, is amended to 
163.9 	read:
163.10 		Subdivision 1.Prohibited transfers. (a) For transfers of assets made on or before 
163.11 	August 10, 1993, if a person or the person's spouse has given away, sold, or disposed of, 
163.12 	for less than fair market value, any asset or interest therein, except assets other than the 
163.13 	homestead that are excluded under the supplemental security program, within 30 months 
163.14 	before or any time after the date of institutionalization if the person has been determined 
163.15 	eligible for medical assistance, or within 30 months before or any time after the date of the 
163.16 	first approved application for medical assistance if the person has not yet been determined 
163.17 	eligible for medical assistance, the person is ineligible for long-term care services for the 
163.18 	period of time determined under subdivision 2.
163.19 	(b) Effective for transfers made after August 10, 1993, a person, a person's spouse, 
163.20 	or any person, court, or administrative body with legal authority to act in place of, on 
163.21 	behalf of, at the direction of, or upon the request of the person or person's spouse, may not 
163.22 	give away, sell, or dispose of, for less than fair market value, any asset or interest therein, 
163.23 	except assets other than the homestead that are excluded under the supplemental security 
163.24 	income program, for the purpose of establishing or maintaining medical assistance 
163.25 	eligibility. This applies to all transfers, including those made by a community spouse 
163.26 	after the month in which the institutionalized spouse is determined eligible for medical 
163.27 	assistance. For purposes of determining eligibility for long-term care services, any transfer 
163.28 	of such assets within 36 months before or any time after an institutionalized person applies 
163.29 	for medical assistance, or 36 months before or any time after a medical assistance recipient 
163.30 	becomes institutionalized, for less than fair market value may be considered. Any such 
163.31 	transfer is presumed to have been made for the purpose of establishing or maintaining 
163.32 	medical assistance eligibility and the person is ineligible for long-term care services for 
163.33 	the period of time determined under subdivision 2, unless the person furnishes convincing 
163.34 	evidence to establish that the transaction was exclusively for another purpose, or unless 
163.35 	the transfer is permitted under subdivision 3 or 4. Notwithstanding the provisions of this 
164.1 	paragraph,  In the case of payments from a trust or portions of a trust that are considered 
164.2 	transfers of assets under federal law, or in the case of any other disposal of assets made on 
164.3 	or after February 8, 2006, any transfers made within 60 months before or any time after an 
164.4 	institutionalized person applies for medical assistance and within 60 months before or any 
164.5 	time after a medical assistance recipient becomes institutionalized, may be considered.
164.6 	(c) This section applies to transfers, for less than fair market value, of income 
164.7 	or assets, including assets that are considered income in the month received, such as 
164.8 	inheritances, court settlements, and retroactive benefit payments or income to which the 
164.9 	person or the person's spouse is entitled but does not receive due to action by the person, 
164.10 	the person's spouse, or any person, court, or administrative body with legal authority 
164.11 	to act in place of, on behalf of, at the direction of, or upon the request of the person or 
164.12 	the person's spouse.
164.13 	(d) This section applies to payments for care or personal services provided by a 
164.14 	relative, unless the compensation was stipulated in a notarized, written agreement which 
164.15 	was in existence when the service was performed, the care or services directly benefited 
164.16 	the person, and the payments made represented reasonable compensation for the care 
164.17 	or services provided. A notarized written agreement is not required if payment for the 
164.18 	services was made within 60 days after the service was provided.
164.19 	(e) This section applies to the portion of any asset or interest that a person, a person's 
164.20 	spouse, or any person, court, or administrative body with legal authority to act in place of, 
164.21 	on behalf of, at the direction of, or upon the request of the person or the person's spouse, 
164.22 	transfers to any annuity that exceeds the value of the benefit likely to be returned to the 
164.23 	person or spouse while alive, based on estimated life expectancy using the life expectancy 
164.24 	tables employed by the supplemental security income program to determine the value 
164.25 	of an agreement for services for life. The commissioner may adopt rules reducing life 
164.26 	expectancies based on the need for long-term care. This section applies to an annuity 
164.27 	described in this paragraph purchased on or after March 1, 2002, that:
164.28 	(1) is not purchased from an insurance company or financial institution that is 
164.29 	subject to licensing or regulation by the Minnesota Department of Commerce or a similar 
164.30 	regulatory agency of another state;
164.31 	(2) does not pay out principal and interest in equal monthly installments; or
164.32 	(3) does not begin payment at the earliest possible date after annuitization.
164.33 	(f) Effective for transactions, including the purchase of an annuity, occurring on or 
164.34 	after February 8, 2006, the purchase of an annuity by or on behalf of an individual who 
164.35 	has applied for or is receiving long-term care services or the individual's spouse shall be 
164.36 	treated as the disposal of an asset for less than fair market value unless the department is 
165.1 	named as the remainder beneficiary in first position for an amount equal to at least the total 
165.2 	amount of medical assistance paid on behalf of the individual or the individual's spouse; 
165.3 	or the department is named as the remainder beneficiary in second position for an amount 
165.4 	equal to at least the total amount of medical assistance paid on behalf of the individual or 
165.5 	the individual's spouse after the individual's community spouse or minor or disabled child 
165.6 	and is named as the remainder beneficiary in the first position if the community spouse or 
165.7 	a representative of the minor or disabled child disposes of the remainder for less than fair 
165.8 	market value. Any subsequent change to the designation of the department as a remainder 
165.9 	beneficiary shall result in the annuity being treated as a disposal of assets for less than fair 
165.10 	market value. The amount of such transfer shall be the maximum amount the individual 
165.11 	or the individual's spouse could receive from the annuity or similar financial instrument. 
165.12 	Any change in the amount of the income or principal being withdrawn from the annuity 
165.13 	or other similar financial instrument at the time of the most recent disclosure shall be 
165.14 	deemed to be a transfer of assets for less than fair market value unless the individual or the 
165.15 	individual's spouse demonstrates that the transaction was for fair market value.
165.16 	(g) Effective for transactions, including the purchase of an annuity, occurring on 
165.17 	or after February 8, 2006, the purchase of an annuity by or on behalf of an individual 
165.18 	applying for or receiving long-term care services shall be treated as a disposal of assets 
165.19 	for less than fair market value unless it is:
165.20 	(i) an annuity described in subsection (b) or (q) of section 408 of the Internal 
165.21 	Revenue Code of 1986; or 
165.22 	(ii) purchased with proceeds from:
165.23 	(A) an account or trust described in subsection (a), (c), or (p) of section 408 of the 
165.24 	Internal Revenue Code;
165.25 	(B) a simplified employee pension within the meaning of section 408(k) of the 
165.26 	Internal Revenue Code; or
165.27 	(C) a Roth IRA described in section 408A of the Internal Revenue Code; or
165.28 	(iii) an annuity that is irrevocable and nonassignable; is actuarially sound as 
165.29 	determined in accordance with actuarial publications of the Office of the Chief Actuary of 
165.30 	the Social Security Administration; and provides for payments in equal amounts during 
165.31 	the term of the annuity, with no deferral and no balloon payments made.
165.32 	(f) (h) For purposes of this section, long-term care services include services in a 
165.33 	nursing facility, services that are eligible for payment according to section  256B.0625, 
165.34 	subdivision 2, because they are provided in a swing bed, intermediate care facility for 
165.35 	persons with mental retardation, and home and community-based services provided 
165.36 	pursuant to sections  256B.0915,  256B.092, and  256B.49. For purposes of this subdivision 
166.1 	and subdivisions 2, 3, and 4, "institutionalized person" includes a person who is an 
166.2 	inpatient in a nursing facility or in a swing bed, or intermediate care facility for persons 
166.3 	with mental retardation or who is receiving home and community-based services under 
166.4 	sections  256B.0915,  256B.092, and  256B.49. 
166.5 	(i) This section applies to funds used to purchase a promissory note, loan, or 
166.6 	mortgage unless the note, loan, or mortgage:
166.7 	(1) has a repayment term that is actuarially sound;
166.8 	(2) provides for payments to be made in equal amounts during the term of the loan, 
166.9 	with no deferral and no balloon payments made; and
166.10 	(3) prohibits the cancellation of the balance upon the death of the lender.
166.11 	In the case of a promissory note, loan, or mortgage that does not meet an exception 
166.12 	in clauses (1) to (3), the value of such note, loan, or mortgage shall be the outstanding 
166.13 	balance due as of the date of the individual's application for long-term care services.
166.14 	(j) This section applies to the purchase of a life estate interest in another individual's 
166.15 	home unless the purchaser resides in the home for a period of at least one year after the 
166.16 	date of purchase.

166.17 	Sec. 31. Minnesota Statutes 2005 Supplement, section 256B.0595, subdivision 2, 
166.18 	is amended to read:
166.19 		Subd. 2.Period of ineligibility. (a) For any uncompensated transfer occurring on or 
166.20 	before August 10, 1993, the number of months of ineligibility for long-term care services 
166.21 	shall be the lesser of 30 months, or the uncompensated transfer amount divided by the 
166.22 	average medical assistance rate for nursing facility services in the state in effect on the 
166.23 	date of application. The amount used to calculate the average medical assistance payment 
166.24 	rate shall be adjusted each July 1 to reflect payment rates for the previous calendar year. 
166.25 	The period of ineligibility begins with the month in which the assets were transferred. 
166.26 	If the transfer was not reported to the local agency at the time of application, and the 
166.27 	applicant received long-term care services during what would have been the period of 
166.28 	ineligibility if the transfer had been reported, a cause of action exists against the transferee 
166.29 	for the cost of long-term care services provided during the period of ineligibility, or for the 
166.30 	uncompensated amount of the transfer, whichever is less. The action may be brought by 
166.31 	the state or the local agency responsible for providing medical assistance under chapter 
166.32 	256G. The uncompensated transfer amount is the fair market value of the asset at the time 
166.33 	it was given away, sold, or disposed of, less the amount of compensation received.
166.34 	(b) For uncompensated transfers made after August 10, 1993, the number of months 
166.35 	of ineligibility for long-term care services shall be the total uncompensated value of the 
167.1 	resources transferred divided by the average medical assistance rate for nursing facility 
167.2 	services in the state in effect on the date of application. The amount used to calculate the 
167.3 	average medical assistance payment rate shall be adjusted each July 1 to reflect payment 
167.4 	rates for the previous calendar year. The period of ineligibility begins with the first day 
167.5 	of the month after the month in which the assets were transferred except that if one or 
167.6 	more uncompensated transfers are made during a period of ineligibility, the total assets 
167.7 	transferred during the ineligibility period shall be combined and a penalty period calculated 
167.8 	to begin on the first day of the month after the month in which the first uncompensated 
167.9 	transfer was made. If the transfer was reported to the local agency after the date that 
167.10 	advance notice of a period of ineligibility that affects the next month could be provided to 
167.11 	the recipient and the recipient received medical assistance services or the transfer was not 
167.12 	reported to the local agency, and the applicant or recipient received medical assistance 
167.13 	services during what would have been the period of ineligibility if the transfer had been 
167.14 	reported, a cause of action exists against the transferee for the cost of medical assistance 
167.15 	services provided during the period of ineligibility, or for the uncompensated amount of 
167.16 	the transfer, whichever is less. The action may be brought by the state or the local agency 
167.17 	responsible for providing medical assistance under chapter 256G. The uncompensated 
167.18 	transfer amount is the fair market value of the asset at the time it was given away, sold, or 
167.19 	disposed of, less the amount of compensation received. Effective for transfers made on or 
167.20 	after March 1, 1996, involving persons who apply for medical assistance on or after April 
167.21 	13, 1996, no cause of action exists for a transfer unless:
167.22 	(1) the transferee knew or should have known that the transfer was being made by a 
167.23 	person who was a resident of a long-term care facility or was receiving that level of care in 
167.24 	the community at the time of the transfer;
167.25 	(2) the transferee knew or should have known that the transfer was being made to 
167.26 	assist the person to qualify for or retain medical assistance eligibility; or
167.27 	(3) the transferee actively solicited the transfer with intent to assist the person to 
167.28 	qualify for or retain eligibility for medical assistance.
167.29 	(c) For uncompensated transfers made on or after February 8, 2006, the period of 
167.30 	ineligibility begins on the first day of the month in which advance notice can be given 
167.31 	following the month in which assets have been transferred for less than fair market value, 
167.32 	or the date on which the individual is eligible for medical assistance under the Medicaid 
167.33 	state plan and would otherwise be receiving long-term care services based on an approved 
167.34 	application for such care but for the application of the penalty period, whichever is later, 
167.35 	and which does not occur during any other period of ineligibility.
168.1 	(d) If a calculation of a penalty period results in a partial month, payments for 
168.2 	long-term care services shall be reduced in an amount equal to the fraction,.except that in 
168.3 	calculating the value of uncompensated transfers, if the total value of all uncompensated 
168.4 	transfers made in a month not included in an existing penalty period does not exceed $200, 
168.5 	then such transfers shall be disregarded for each month prior to the month of application 
168.6 	for or during receipt of medical assistance.
168.7 	(e) In the case of multiple fractional transfers of assets in more than one month for 
168.8 	less than fair market value on or after February 8, 2006, the period of ineligibility is 
168.9 	calculated by treating the total, cumulative, uncompensated value of all assets transferred 
168.10 	during all months on or after February 8, 2006, as one transfer.

168.11 	EFFECTIVE DATE. Amendments to this section are effective for applications on 
168.12 	or after July 1, 2006, and for renewals and reports of transfers on or after July 1, 2006.

168.13 	Sec. 32. Minnesota Statutes 2004, section 256B.0595, subdivision 3, is amended to 
168.14 	read:
168.15 		Subd. 3.Homestead exception to transfer prohibition. (a) An institutionalized 
168.16 	person is not ineligible for long-term care services due to a transfer of assets for less than 
168.17 	fair market value if the asset transferred was a homestead and:
168.18 	(1) title to the homestead was transferred to the individual's:
168.19 	(i) spouse;
168.20 	(ii) child who is under age 21;
168.21 	(iii) blind or permanently and totally disabled child as defined in the supplemental 
168.22 	security income program;
168.23 	(iv) sibling who has equity interest in the home and who was residing in the home 
168.24 	for a period of at least one year immediately before the date of the individual's admission 
168.25 	to the facility; or
168.26 	(v) son or daughter who was residing in the individual's home for a period of at least 
168.27 	two years immediately before the date of the individual's admission to the facility, and who 
168.28 	provided care to the individual that, as certified by the individual's attending physician, 
168.29 	permitted the individual to reside at home rather than in an institution or facility;
168.30 	(2) a satisfactory showing is made that the individual intended to dispose of the 
168.31 	homestead at fair market value or for other valuable consideration; or
168.32 	(3) the local agency grants a waiver of a penalty resulting from a transfer for less 
168.33 	than fair market value because denial of eligibility would cause undue hardship for the 
168.34 	individual, based on imminent threat to the individual's health and well-being. Whenever 
168.35 	an applicant or recipient is denied eligibility because of a transfer for less than fair market 
169.1 	value, the local agency shall notify the applicant or recipient that the applicant or recipient 
169.2 	may request a waiver of the penalty if the denial of eligibility will cause undue hardship. 
169.3 	With the written consent of the individual or the personal representative of the individual, 
169.4 	a long-term care facility in which an individual is residing may file an undue hardship 
169.5 	waiver request, on behalf of the individual who is denied eligibility for long-term care 
169.6 	services on or after July 1, 2006, due to a period of ineligibility resulting from a transfer on 
169.7 	or after February 8, 2006. In evaluating a waiver, the local agency shall take into account 
169.8 	whether the individual was the victim of financial exploitation, whether the individual has 
169.9 	made reasonable efforts to recover the transferred property or resource, and other factors 
169.10 	relevant to a determination of hardship. If the local agency does not approve a hardship 
169.11 	waiver, the local agency shall issue a written notice to the individual stating the reasons 
169.12 	for the denial and the process for appealing the local agency's decision.
169.13 	(b) When a waiver is granted under paragraph (a), clause (3), a cause of action exists 
169.14 	against the person to whom the homestead was transferred for that portion of long-term 
169.15 	care services granted within:
169.16 	(1) 30 months of a transfer made on or before August 10, 1993;
169.17 	(2) 60 months if the homestead was transferred after August 10, 1993, to a trust or 
169.18 	portion of a trust that is considered a transfer of assets under federal law; or
169.19 	(3) 36 months if transferred in any other manner after August 10, 1993, but prior 
169.20 	to February 8, 2006; or
169.21 	(4) 60 months if the homestead was transferred on or after February 8, 2006,
169.22 	or the amount of the uncompensated transfer, whichever is less, together with the 
169.23 	costs incurred due to the action. The action shall be brought by the state unless the 
169.24 	state delegates this responsibility to the local agency responsible for providing medical 
169.25 	assistance under chapter 256G.

169.26 	Sec. 33. Minnesota Statutes 2004, section 256B.0595, subdivision 4, is amended to 
169.27 	read:
169.28 		Subd. 4.Other exceptions to transfer prohibition. An institutionalized person 
169.29 	who has made, or whose spouse has made a transfer prohibited by subdivision 1, is not 
169.30 	ineligible for long-term care services if one of the following conditions applies:
169.31 	(1) the assets were transferred to the individual's spouse or to another for the sole 
169.32 	benefit of the spouse; or
169.33 	(2) the institutionalized spouse, prior to being institutionalized, transferred assets 
169.34 	to a spouse, provided that the spouse to whom the assets were transferred does not then 
169.35 	transfer those assets to another person for less than fair market value. (At the time when 
170.1 	one spouse is institutionalized, assets must be allocated between the spouses as provided 
170.2 	under section 256B.059); or
170.3 	(3) the assets were transferred to the individual's child who is blind or permanently 
170.4 	and totally disabled as determined in the supplemental security income program; or
170.5 	(4) a satisfactory showing is made that the individual intended to dispose of the 
170.6 	assets either at fair market value or for other valuable consideration; or
170.7 	(5) the local agency determines that denial of eligibility for long-term care services 
170.8 	would work an undue hardship and grants a waiver of a penalty resulting from a transfer 
170.9 	for less than fair market value based on an imminent threat to the individual's health 
170.10 	and well-being. Whenever an applicant or recipient is denied eligibility because of a 
170.11 	transfer for less than fair market value, the local agency shall notify the applicant or 
170.12 	recipient that the applicant or recipient may request a waiver of the penalty if the denial of 
170.13 	eligibility will cause undue hardship. With the written consent of the individual or the 
170.14 	personal representative of the individual, a long-term care facility in which an individual 
170.15 	is residing may file an undue hardship waiver request, on behalf of the individual who 
170.16 	is denied eligibility for long-term care services on or after July 1, 2006, due to a period 
170.17 	of ineligibility resulting from a transfer on or after February 8, 2006. In evaluating a 
170.18 	waiver, the local agency shall take into account whether the individual was the victim of 
170.19 	financial exploitation, whether the individual has made reasonable efforts to recover the 
170.20 	transferred property or resource, whether the individual has taken any action to prevent 
170.21 	the designation of the department as a remainder beneficiary on an annuity as described 
170.22 	in section 256B.056, subdivision 11, and other factors relevant to a determination of 
170.23 	hardship. If the local agency does not approve a hardship waiver, the local agency shall 
170.24 	issue a written notice to the individual stating the reasons for the denial and the process for 
170.25 	appealing the local agency's decision. When a waiver is granted, a cause of action exists 
170.26 	against the person to whom the assets were transferred for that portion of long-term care 
170.27 	services granted within:
170.28 	(i) 30 months of a transfer made on or before August 10, 1993;
170.29 	(ii) 60 months of a transfer if the assets were transferred after August 30, 1993, to a 
170.30 	trust or portion of a trust that is considered a transfer of assets under federal law; or
170.31 	(iii) 36 months of a transfer if transferred in any other manner after August 10, 1993,
170.32 	but prior to February 8, 2006; or
170.33 	(iv) 60 months of any transfer made on or after February 8, 2006,
170.34 	or the amount of the uncompensated transfer, whichever is less, together with the 
170.35 	costs incurred due to the action. The action shall be brought by the state unless the 
171.1 	state delegates this responsibility to the local agency responsible for providing medical 
171.2 	assistance under this chapter; or
171.3 	(6) for transfers occurring after August 10, 1993, the assets were transferred by 
171.4 	the person or person's spouse: (i) into a trust established for the sole benefit of a son or 
171.5 	daughter of any age who is blind or disabled as defined by the Supplemental Security 
171.6 	Income program; or (ii) into a trust established for the sole benefit of an individual who is 
171.7 	under 65 years of age who is disabled as defined by the Supplemental Security Income 
171.8 	program.
171.9 	"For the sole benefit of" has the meaning found in section  256B.059, subdivision 1. 

171.10 	Sec. 34. Minnesota Statutes 2005 Supplement, section 256B.06, subdivision 4, is 
171.11 	amended to read:
171.12 		Subd. 4.Citizenship requirements. (a) Eligibility for medical assistance is limited 
171.13 	to citizens of the United States, qualified noncitizens as defined in this subdivision, and 
171.14 	other persons residing lawfully in the United States. Citizens or nationals of the United 
171.15 	States must cooperate in obtaining satisfactory documentary evidence of citizenship or 
171.16 	nationality according to the requirements of the federal Deficit Reduction Act of 2005, 
171.17 	Public Law 109-171.
171.18 	(b) "Qualified noncitizen" means a person who meets one of the following 
171.19 	immigration criteria:
171.20 	(1) admitted for lawful permanent residence according to United States Code, title 8;
171.21 	(2) admitted to the United States as a refugee according to United States Code, 
171.22 	title 8, section 1157;
171.23 	(3) granted asylum according to United States Code, title 8, section 1158;
171.24 	(4) granted withholding of deportation according to United States Code, title 8, 
171.25 	section 1253(h);
171.26 	(5) paroled for a period of at least one year according to United States Code, title 8, 
171.27 	section 1182(d)(5);
171.28 	(6) granted conditional entrant status according to United States Code, title 8, 
171.29 	section 1153(a)(7);
171.30 	(7) determined to be a battered noncitizen by the United States Attorney General 
171.31 	according to the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, 
171.32 	title V of the Omnibus Consolidated Appropriations Bill, Public Law 104-200;
171.33 	(8) is a child of a noncitizen determined to be a battered noncitizen by the United 
171.34 	States Attorney General according to the Illegal Immigration Reform and Immigrant 
172.1 	Responsibility Act of 1996, title V, of the Omnibus Consolidated Appropriations Bill, 
172.2 	Public Law 104-200; or
172.3 	(9) determined to be a Cuban or Haitian entrant as defined in section 501(e) of Public 
172.4 	Law 96-422, the Refugee Education Assistance Act of 1980.
172.5 	(c) All qualified noncitizens who were residing in the United States before August 
172.6 	22, 1996, who otherwise meet the eligibility requirements of this chapter, are eligible for 
172.7 	medical assistance with federal financial participation.
172.8 	(d) All qualified noncitizens who entered the United States on or after August 22, 
172.9 	1996, and who otherwise meet the eligibility requirements of this chapter, are eligible for 
172.10 	medical assistance with federal financial participation through November 30, 1996.
172.11 	Beginning December 1, 1996, qualified noncitizens who entered the United States 
172.12 	on or after August 22, 1996, and who otherwise meet the eligibility requirements of this 
172.13 	chapter are eligible for medical assistance with federal participation for five years if they 
172.14 	meet one of the following criteria:
172.15 	(i) refugees admitted to the United States according to United States Code, title 8, 
172.16 	section 1157;
172.17 	(ii) persons granted asylum according to United States Code, title 8, section 1158;
172.18 	(iii) persons granted withholding of deportation according to United States Code, 
172.19 	title 8, section 1253(h);
172.20 	(iv) veterans of the United States armed forces with an honorable discharge for 
172.21 	a reason other than noncitizen status, their spouses and unmarried minor dependent 
172.22 	children; or
172.23 	(v) persons on active duty in the United States armed forces, other than for training, 
172.24 	their spouses and unmarried minor dependent children.
172.25 	Beginning December 1, 1996, qualified noncitizens who do not meet one of the 
172.26 	criteria in items (i) to (v) are eligible for medical assistance without federal financial 
172.27 	participation as described in paragraph (j).
172.28 	(e) Noncitizens who are not qualified noncitizens as defined in paragraph (b), 
172.29 	who are lawfully residing in the United States and who otherwise meet the eligibility 
172.30 	requirements of this chapter, are eligible for medical assistance under clauses (1) to (3). 
172.31 	These individuals must cooperate with the Immigration and Naturalization Service to 
172.32 	pursue any applicable immigration status, including citizenship, that would qualify them 
172.33 	for medical assistance with federal financial participation.
172.34 	(1) Persons who were medical assistance recipients on August 22, 1996, are eligible 
172.35 	for medical assistance with federal financial participation through December 31, 1996.
173.1 	(2) Beginning January 1, 1997, persons described in clause (1) are eligible for 
173.2 	medical assistance without federal financial participation as described in paragraph (j).
173.3 	(3) Beginning December 1, 1996, persons residing in the United States prior to 
173.4 	August 22, 1996, who were not receiving medical assistance and persons who arrived on 
173.5 	or after August 22, 1996, are eligible for medical assistance without federal financial 
173.6 	participation as described in paragraph (j).
173.7 	(f) Nonimmigrants who otherwise meet the eligibility requirements of this chapter 
173.8 	are eligible for the benefits as provided in paragraphs (g) to (i). For purposes of this 
173.9 	subdivision, a "nonimmigrant" is a person in one of the classes listed in United States 
173.10 	Code, title 8, section 1101(a)(15).
173.11 	(g) Payment shall also be made for care and services that are furnished to noncitizens, 
173.12 	regardless of immigration status, who otherwise meet the eligibility requirements of 
173.13 	this chapter, if such care and services are necessary for the treatment of an emergency 
173.14 	medical condition, except for organ transplants and related care and services and routine 
173.15 	prenatal care.
173.16 	(h) For purposes of this subdivision, the term "emergency medical condition" means 
173.17 	a medical condition that meets the requirements of United States Code, title 42, section 
173.18 	1396b(v).
173.19 	(i) Pregnant noncitizens who are undocumented, nonimmigrants, or eligible for 
173.20 	medical assistance as described in paragraph (j), and who are not covered by a group 
173.21 	health plan or health insurance coverage according to Code of Federal Regulations, title 
173.22 	42, section 457.310, and who otherwise meet the eligibility requirements of this chapter, 
173.23 	are eligible for medical assistance through the period of pregnancy, including labor and 
173.24 	delivery, to the extent federal funds are available under title XXI of the Social Security 
173.25 	Act, and the state children's health insurance program, followed by 60 days postpartum 
173.26 	without federal financial participation.
173.27 	(j) Qualified noncitizens as described in paragraph (d), and all other noncitizens 
173.28 	lawfully residing in the United States as described in paragraph (e), who are ineligible 
173.29 	for medical assistance with federal financial participation and who otherwise meet the 
173.30 	eligibility requirements of chapter 256B and of this paragraph, are eligible for medical 
173.31 	assistance without federal financial participation. Qualified noncitizens as described 
173.32 	in paragraph (d) are only eligible for medical assistance without federal financial 
173.33 	participation for five years from their date of entry into the United States.
173.34 	(k) Beginning October 1, 2003, persons who are receiving care and rehabilitation 
173.35 	services from a nonprofit center established to serve victims of torture and are otherwise 
173.36 	ineligible for medical assistance under this chapter are eligible for medical assistance 
174.1 	without federal financial participation. These individuals are eligible only for the period 
174.2 	during which they are receiving services from the center. Individuals eligible under this 
174.3 	paragraph shall not be required to participate in prepaid medical assistance.

174.4 	EFFECTIVE DATE. This section is effective July 1, 2006.

174.5 	Sec. 35. Minnesota Statutes 2004, section 256L.04, subdivision 10, is amended to read:
174.6 		Subd. 10.Citizenship requirements. Eligibility for MinnesotaCare is limited 
174.7 	to citizens or nationals of the United States, qualified noncitizens, and other persons 
174.8 	residing lawfully in the United States as described in section  256B.06, subdivision 4, 
174.9 	paragraphs (a) to (e) and (j). Undocumented noncitizens and nonimmigrants are ineligible 
174.10 	for MinnesotaCare. For purposes of this subdivision, a nonimmigrant is an individual in 
174.11 	one or more of the classes listed in United States Code, title 8, section 1101(a)(15), and 
174.12 	an undocumented noncitizen is an individual who resides in the United States without 
174.13 	the approval or acquiescence of the Immigration and Naturalization Service. Families 
174.14 	with children who are citizens or nationals of the United States must cooperate in 
174.15 	obtaining satisfactory documentary evidence of citizenship or nationality according to the 
174.16 	requirements of the federal Deficit Reduction Act of 2005, Public Law 109-171.

174.17 	EFFECTIVE DATE. This section is effective July 1, 2006.

174.18 	Sec. 36. DESIGNATION OF ASSETS AS CONTINGENTLY EXEMPT UNDER 
174.19 	LONG-TERM CARE PARTNERSHIP PROGRAM.
 174.20 	The commissioner of human services shall develop and present to the legislature 
174.21 	by December 15, 2006, a plan and draft legislation to allow individuals participating in 
174.22 	the long-term care partnership program established under Minnesota Statutes, section 
174.23 	256B.0571, to designate, at the time of initial application for medical assistance, assets 
174.24 	as contingently exempt.  The full fair market value of assets designated as contingently 
174.25 	exempt must not exceed a percentage, specified by the commissioner, of the full fair market 
174.26 	value of assets designated as protected under Minnesota Statutes, section 256B.0571, 
174.27 	subdivision 9.  The commissioner may specify different percentages for different categories 
174.28 	of protected assets.  Assets designated as contingently exempt shall be disregarded for 
174.29 	purposes of determining eligibility for payment of long-term care services.  If the dollar 
174.30 	amount of benefits utilized under a partnership policy is greater than the full fair market 
174.31 	value of all assets protected due to a decrease in the value of the protected assets, the plan 
174.32 	and draft legislation must allow the individual or the personal representative to designate 
174.33 	assets that are contingently exempt as protected, up to the amount of the decrease in value 
175.1 	of the protected assets.  The plan and draft legislation must provide that any contingently 
175.2 	exempt asset that is not designated as protected be subject to recovery.

175.3 	Sec. 37.  REPEALER.
 175.4 	Minnesota Statutes 2005 Supplement, section 256B.0571, subdivisions 2, 5, and 
175.5 	11, are repealed.

175.6 	ARTICLE 18
175.7 	CHILDREN AND FAMILIES FEDERAL COMPLIANCE

175.8 	Section 1. Minnesota Statutes 2004, section 256J.021, is amended to read:
175.9 	256J.021 SEPARATE STATE PROGRAM FOR USE OF STATE MONEY.
175.10 	Beginning (a) Until October 1, 2001, and each year thereafter 2006, the 
175.11 	commissioner of human services must treat MFIP expenditures made to or on behalf of 
175.12 	any minor child under section  256J.02, subdivision 2, clause (1), who is a resident of 
175.13 	this state under section  256J.12, and who is part of a two-parent eligible household as 
175.14 	expenditures under a separately funded state program and report those expenditures to the 
175.15 	federal Department of Health and Human Services as separate state program expenditures 
175.16 	under Code of Federal Regulations, title 45, section 263.5. 
175.17 	(b) Beginning October 1, 2006, the commissioner of human services must treat 
175.18 	MFIP expenditures made to or on behalf of any minor child under section 256J.02, 
175.19 	subdivision 2, clause (1), who is a resident of this state under section 256J.12, and who 
175.20 	is part of a two-parent eligible household, as expenditures under a separately funded 
175.21 	state program. These expenditures shall not count toward the state's maintenance of 
175.22 	effort (MOE) requirements under the federal Temporary Assistance to Needy Families 
175.23 	(TANF) program except if counting certain families would allow the commissioner to 
175.24 	avoid a federal penalty. Families receiving assistance under this section must comply with 
175.25 	all applicable requirements in this chapter.

175.26 	Sec. 2. Minnesota Statutes 2004, section 256J.626, subdivision 2, is amended to read:
175.27 		Subd. 2.Allowable expenditures. (a) The commissioner must restrict expenditures 
175.28 	under the consolidated fund to benefits and services allowed under title IV-A of the federal 
175.29 	Social Security Act. Allowable expenditures under the consolidated fund may include, but 
175.30 	are not limited to:
175.31 	(1) short-term, nonrecurring shelter and utility needs that are excluded from the 
175.32 	definition of assistance under Code of Federal Regulations, title 45, section  260.31, for 
175.33 	families who meet the residency requirement in section  256J.12, subdivisions 1 and 1a. 
176.1 	Payments under this subdivision are not considered TANF cash assistance and are not 
176.2 	counted towards the 60-month time limit; 
176.3 	(2) transportation needed to obtain or retain employment or to participate in other 
176.4 	approved work activities;
176.5 	(3) direct and administrative costs of staff to deliver employment services for MFIP 
176.6 	or the diversionary work program, to administer financial assistance, and to provide 
176.7 	specialized services intended to assist hard-to-employ participants to transition to work;
176.8 	(4) costs of education and training including functional work literacy and English as 
176.9 	a second language;
176.10 	(5) cost of work supports including tools, clothing, boots, and other work-related 
176.11 	expenses;
176.12 	(6) county administrative expenses as defined in Code of Federal Regulations, title 
176.13 	45, section 260(b);
176.14 	(7) services to parenting and pregnant teens;
176.15 	(8) supported work;
176.16 	(9) wage subsidies;
176.17 	(10) child care needed for MFIP or diversionary work program participants to 
176.18 	participate in social services;
176.19 	(11) child care to ensure that families leaving MFIP or diversionary work program 
176.20 	will continue to receive child care assistance from the time the family no longer qualifies 
176.21 	for transition year child care until an opening occurs under the basic sliding fee child 
176.22 	care program; and
176.23 	(12) services to help noncustodial parents who live in Minnesota and have minor 
176.24 	children receiving MFIP or DWP assistance, but do not live in the same household as the 
176.25 	child, obtain or retain employment.
176.26 	(b) Administrative costs that are not matched with county funds as provided in 
176.27 	subdivision 8 may not exceed 7.5 percent of a county's or 15 percent of a tribe's allocation 
176.28 	under this section. The commissioner shall define administrative costs for purposes of 
176.29 	this subdivision.
176.30 	(c) The commissioner may waive the cap on administrative costs for a county or tribe 
176.31 	that elects to provide an approved supported employment, unpaid work, or community 
176.32 	work experience program for a major segment of the county's or tribe's MFIP population. 
176.33 	The county or tribe must apply for the waiver on forms provided by the commissioner. In 
176.34 	no case shall total administrative costs exceed the TANF limits.

176.35 	Sec. 3. Minnesota Statutes 2004, section 518.551, subdivision 7, is amended to read:
177.1 		Subd. 7.Fees and cost recovery fees for IV-D services. (a) When a recipient of 
177.2 	IV-D services is no longer receiving assistance under the state's title IV-A, IV-E foster 
177.3 	care, medical assistance, or MinnesotaCare programs, the public authority responsible 
177.4 	for child support enforcement must notify the recipient, within five working days of the 
177.5 	notification of ineligibility, that IV-D services will be continued unless the public authority 
177.6 	is notified to the contrary by the recipient. The notice must include the implications 
177.7 	of continuing to receive IV-D services, including the available services and fees, cost 
177.8 	recovery fees, and distribution policies relating to fees.
177.9 	(b) An application fee of $25 shall be paid by the person who applies for child 
177.10 	support and maintenance collection services, except persons who are receiving public 
177.11 	assistance as defined in section   256.741 and, if enacted, the diversionary work program 
177.12 	under section   256J.95, persons who transfer from public assistance to nonpublic assistance 
177.13 	status, and minor parents and parents enrolled in a public secondary school, area learning 
177.14 	center, or alternative learning program approved by the commissioner of education. 
177.15 	(c) In the case of an individual who has never received assistance under a state 
177.16 	program funded under Title IV-A of the Social Security Act and for whom the public 
177.17 	authority has collected at least $500 of support, the public authority must impose an 
177.18 	annual federal collections fee of $25 for each case in which services are furnished. This 
177.19 	fee must be retained by the public authority from support collected on behalf of the 
177.20 	individual, but not from the first $500 collected.
177.21 	(c) (d) When the public authority provides full IV-D services to an obligee who 
177.22 	has applied for those services, upon written notice to the obligee, the public authority 
177.23 	must charge a cost recovery fee of one percent of the amount collected. This fee must 
177.24 	be deducted from the amount of the child support and maintenance collected and not 
177.25 	assigned under section   256.741 before disbursement to the obligee. This fee does not 
177.26 	apply to an obligee who: 
177.27 	(1)  is currently receiving assistance under the state's title IV-A, IV-E foster care, 
177.28 	medical assistance, or MinnesotaCare programs; or
177.29 	(2)  has received assistance under the state's title IV-A or IV-E foster care programs, 
177.30 	until the person has not received this assistance for 24 consecutive months.
177.31 	(d) (e) When the public authority provides full IV-D services to an obligor who has 
177.32 	applied for such services, upon written notice to the obligor, the public authority must 
177.33 	charge a cost recovery fee of one percent of the monthly court-ordered child support and 
177.34 	maintenance obligation. The fee may be collected through income withholding, as well 
177.35 	as by any other enforcement remedy available to the public authority responsible for 
177.36 	child support enforcement.
178.1 	(e) (f) Fees assessed by state and federal tax agencies for collection of overdue 
178.2 	support owed to or on behalf of a person not receiving public assistance must be imposed 
178.3 	on the person for whom these services are provided. The public authority upon written 
178.4 	notice to the obligee shall assess a fee of $25 to the person not receiving public assistance 
178.5 	for each successful federal tax interception. The fee must be withheld prior to the release 
178.6 	of the funds received from each interception and deposited in the general fund.
178.7 	(f) (g) Federal collections fees collected under paragraph (c) and cost recovery fees 
178.8 	collected under paragraphs (c) and (d) and (e) shall be considered child support program 
178.9 	income according to Code of Federal Regulations, title 45, section   304.50, and shall 
178.10 	be deposited in the cost recovery fee special revenue fund account established under 
178.11 	paragraph (h) (i). The commissioner of human services must elect to recover costs based 
178.12 	on either actual or standardized costs. 
178.13 	(g) (h) The limitations of this subdivision on the assessment of fees shall not apply 
178.14 	to the extent inconsistent with the requirements of federal law for receiving funds for the 
178.15 	programs under Title IV-A and Title IV-D of the Social Security Act, United States Code, 
178.16 	title 42, sections 601 to 613 and United States Code, title 42, sections 651 to 662.
178.17 	(h) (i) The commissioner of human services is authorized to establish a special 
178.18 	revenue fund account to receive child support the federal collections fees collected under 
178.19 	paragraph (c) and cost recovery fees collected under paragraphs (d) and (e). A portion of 
178.20 	the nonfederal share of these fees may be retained for expenditures necessary to administer 
178.21 	the fee fees and must be transferred to the child support system special revenue account. 
178.22 	The remaining nonfederal share of the federal collections fees and cost recovery fee fees
178.23 	must be retained by the commissioner and dedicated to the child support general fund 
178.24 	county performance-based grant account authorized under sections   256.979 and   256.9791. 

178.25 	EFFECTIVE DATE. This section is effective October 1, 2006, or later, if the 
178.26 	commissioner determines that a later implementation will not result in federal financial 
178.27 	penalties.

178.28 	ARTICLE 19
178.29 	ASSISTED LIVING

178.30 	Section 1. [144A.441] ASSISTED LIVING BILL OF RIGHTS ADDENDUM.
178.31 	Assisted living clients, as defined in section 144G.01, subdivision 3, shall be 
178.32 	provided with the home care bill of rights required by section 144A.44, except that the 
178.33 	home care bill of rights provided to these clients must include the following provision in 
178.34 	place of the provision in section 144A.44, subdivision 1, clause (16): 
179.1 	"(16) the right to reasonable, advance notice of changes in services or charges, 
179.2 	including at least 30 days' advance notice of the termination of a service by a provider, 
179.3 	except in cases where:
179.4 	(i) the recipient of services engages in conduct that alters the conditions of 
179.5 	employment as specified in the employment contract between the home care provider 
179.6 	and the individual providing home care services, or creates an abusive or unsafe work 
179.7 	environment for the individual providing home care services;
179.8 	(ii) an emergency for the informal caregiver or a significant change in the recipient's 
179.9 	condition has resulted in service needs that exceed the current service provider agreement 
179.10 	and that cannot be safely met by the home care provider; or
179.11 	(iii) the provider has not received payment for services, for which at least ten days' 
179.12 	advance notice of the termination of a service shall be provided."

179.13 	EFFECTIVE DATE. This section is effective January 1, 2007.

179.14 	Sec. 2. [144A.442] TERMINATION OF HOME CARE SERVICES FOR 
179.15 	ASSISTED LIVING CLIENTS.
179.16 	If an arranged home care provider, as defined in section 144D.01, subdivision 2a, 
179.17 	who is not also Medicare certified terminates a service agreement or service plan with 
179.18 	an assisted living client, as defined in section 144G.01, subdivision 3, the home care 
179.19 	provider shall provide the assisted living client and the legal or designated representatives 
179.20 	of the client, if any, with a written notice of termination which includes the following 
179.21 	information:
179.22 	(1) the effective date of termination;
179.23 	(2) the reason for termination;
179.24 	(3) without extending the termination notice period, an affirmative offer to meet with 
179.25 	the assisted living client or client representatives within no more than five business days of 
179.26 	the date of the termination notice to discuss the termination;
179.27 	(4) contact information for a reasonable number of other home care providers in 
179.28 	the geographic area of the assisted living client, as required by Minnesota Rules, part 
179.29 	4668.0050;
179.30 	(5) a statement that the provider will participate in a coordinated transfer of the care 
179.31 	of the client to another provider or caregiver, as required by section 144A.44, subdivision 
179.32 	1, clause (17);
179.33 	(6) the name and contact information of a representative of the home care provider 
179.34 	with whom the client may discuss the notice of termination;
179.35 	(7) a copy of the home care bill of rights; and
180.1 	(8) a statement that the notice of termination of home care services by the home care 
180.2 	provider does not constitute notice of termination of the housing with services contract 
180.3 	with a housing with services establishment.

180.4 	EFFECTIVE DATE. This section is effective January 1, 2007.

180.5 	Sec. 3. Minnesota Statutes 2004, section 144A.4605, is amended to read:
180.6 	144A.4605 ASSISTED LIVING HOME CARE CLASS F PROVIDER.
180.7 		Subdivision 1.Definitions. For purposes of this section, the term "assisted 
180.8 	living class F home care provider" means a home care provider who provides nursing 
180.9 	services, delegated nursing services, other services performed by unlicensed personnel, or 
180.10 	central storage of medications solely for residents of one or more housing with services 
180.11 	establishments registered under chapter 144D.
180.12 		Subd. 2.Assisted living Class F home care license established. A home care 
180.13 	provider license category entitled assisted living class F home care provider is hereby 
180.14 	established. A home care provider may obtain an assisted living a class F license if the 
180.15 	program meets the following requirements:
180.16 	(a) nursing services, delegated nursing services, other services performed by 
180.17 	unlicensed personnel, or central storage of medications under the assisted living class 
180.18 	F license are provided solely for residents of one or more housing with services 
180.19 	establishments registered under chapter 144D;
180.20 	(b) unlicensed personnel perform home health aide and home care aide tasks 
180.21 	identified in Minnesota Rules, parts 4668.0100, subparts 1 and 2, and 4668.0110, subpart 1. 
180.22 	Qualifications to perform these tasks shall be established in accordance with subdivision 3;
180.23 	(c) periodic supervision of unlicensed personnel is provided as required by rule;
180.24 	(d) notwithstanding Minnesota Rules, part 4668.0160, subpart 6, item D, client 
180.25 	records shall include:
180.26 	(1) daily records or a weekly summary of home care services provided;
180.27 	(2) documentation each time medications are administered to a client; and
180.28 	(3) documentation on the day of occurrence of any significant change in the client's 
180.29 	status or any significant incident, such as a fall or refusal to take medications.
180.30 	All entries must be signed by the staff providing the services and entered into the 
180.31 	record no later than two weeks after the end of the service day, except as specified in 
180.32 	clauses (2) and (3);
181.1 	(e) medication and treatment orders, if any, are included in the client record and 
181.2 	are renewed at least every 12 months, or more frequently when indicated by a clinical 
181.3 	assessment;
181.4 	(f) the central storage of medications in a housing with services establishment 
181.5 	registered under chapter 144D is managed under a system that is established by a 
181.6 	registered nurse and addresses the control of medications, handling of medications, 
181.7 	medication containers, medication records, and disposition of medications; and
181.8 	(g) in other respects meets the requirements established by rules adopted under 
181.9 	sections  144A.45 to  144A.47. 
181.10 		Subd. 3.Training or competency evaluations required. (a) Unlicensed personnel 
181.11 	must:
181.12 	(1) satisfy the training or competency requirements established by rule under 
181.13 	sections  144A.45 to  144A.47; or 
181.14 	(2) be trained or determined competent by a registered nurse in each task identified 
181.15 	under Minnesota Rules, part 4668.0100, subparts 1 and 2, when offered to clients in a 
181.16 	housing with services establishment as described in paragraphs (b) to (e).
181.17 	(b) Training for tasks identified under Minnesota Rules, part 4668.0100, subparts 
181.18 	1 and 2, shall use a curriculum which meets the requirements in Minnesota Rules, part 
181.19 	4668.0130.
181.20 	(c) Competency evaluations for tasks identified under Minnesota Rules, part 
181.21 	4668.0100, subparts 1 and 2, must be completed and documented by a registered nurse.
181.22 	(d) Unlicensed personnel performing tasks identified under Minnesota Rules, part 
181.23 	4668.0100, subparts 1 and 2, shall be trained or demonstrate competency in the following 
181.24 	topics:
181.25 	(1) an overview of sections  144A.43 to  144A.47 and rules adopted thereunder; 
181.26 	(2) recognition and handling of emergencies and use of emergency services;
181.27 	(3) reporting the maltreatment of vulnerable minors or adults under sections  626.556
181.28 	and  626.557; 
181.29 	(4) home care bill of rights;
181.30 	(5) handling of clients' complaints and reporting of complaints to the Office of 
181.31 	Health Facility Complaints;
181.32 	(6) services of the ombudsman for older Minnesotans;
181.33 	(7) observation, reporting, and documentation of client status and of the care or 
181.34 	services provided;
181.35 	(8) basic infection control;
181.36 	(9) maintenance of a clean, safe, and healthy environment;
182.1 	(10) communication skills;
182.2 	(11) basic elements of body functioning and changes in body function that must be 
182.3 	reported to an appropriate health care professional; and
182.4 	(12) physical, emotional, and developmental needs of clients, and ways to work with 
182.5 	clients who have problems in these areas, including respect for the client, the client's 
182.6 	property, and the client's family.
182.7 	(e) Unlicensed personnel who administer medications must comply with rules 
182.8 	relating to the administration of medications in Minnesota Rules, part 4668.0100, subpart 
182.9 	2, except that unlicensed personnel need not comply with the requirements of Minnesota 
182.10 	Rules, part 4668.0100, subpart 5.
182.11 		Subd. 4.License required. (a) A housing with services establishment registered 
182.12 	under chapter 144D that is required to obtain a home care license must obtain an assisted 
182.13 	living a class F home care license according to this section or a class A or class E B license 
182.14 	according to rule. A housing with services establishment that obtains a class E B license 
182.15 	under this subdivision remains subject to the payment limitations in sections  256B.0913, 
182.16 	subdivision 5f, paragraph (b), and  256B.0915, subdivision 3d. 
182.17 	(b) A board and lodging establishment registered for special services as of December 
182.18 	31, 1996, and also registered as a housing with services establishment under chapter 
182.19 	144D, must deliver home care services according to sections  144A.43 to 144A.47, and 
182.20 	may apply for a waiver from requirements under Minnesota Rules, parts 4668.0002 to 
182.21 	4668.0240, to operate a licensed agency under the standards of section  157.17. Such 
182.22 	waivers as may be granted by the department will expire upon promulgation of home care 
182.23 	rules implementing section  144A.4605. 
182.24 	(c) An adult foster care provider licensed by the Department of Human Services and 
182.25 	registered under chapter 144D may continue to provide health-related services under its 
182.26 	foster care license until the promulgation of home care rules implementing this section.
182.27 	(d) An assisted living (c) A class F home care provider licensed under this section 
182.28 	must comply with the disclosure provisions of section  325F.72 to the extent they are 
182.29 	applicable. 
182.30 		Subd. 5.License fees. The license fees for assisted living class F home care 
182.31 	providers shall be as follows:
182.32 	(1) $125 annually for those providers serving a monthly average of 15 or fewer 
182.33 	clients, and for assisted living class F providers of all sizes during the first year of 
182.34 	operation;
182.35 	(2) $200 annually for those providers serving a monthly average of 16 to 30 clients;
183.1 	(3) $375 annually for those providers serving a monthly average of 31 to 50 clients; 
183.2 	and
183.3 	(4) $625 annually for those providers serving a monthly average of 51 or more 
183.4 	clients.
183.5 		Subd. 6.Waiver. Upon request of the home care provider, the commissioner may 
183.6 	waive the provisions of this section relating to registered nurse duties.

183.7 	EFFECTIVE DATE. This section is effective January 1, 2007.

183.8 	Sec. 4. Minnesota Statutes 2004, section 144D.01, is amended by adding a subdivision 
183.9 	to read:
183.10 		Subd. 2a.Arranged home care provider. "Arranged home care provider" means a 
183.11 	home care provider licensed under Minnesota Rules, chapter 4668, that provides services 
183.12 	to some or all of the residents of a housing with services establishment and that is either 
183.13 	the establishment itself or another entity with which the establishment has an arrangement.

183.14 	EFFECTIVE DATE. This section is effective January 1, 2007.

183.15 	Sec. 5. Minnesota Statutes 2004, section 144D.015, is amended to read:
183.16 	144D.015 ASSISTED LIVING FACILITY OR ASSISTED LIVING 
183.17 	RESIDENCE DEFINITION FOR PURPOSES OF LONG-TERM CARE 
183.18 	INSURANCE.
183.19 	For purposes of consistency with terminology commonly used in long-term 
183.20 	care insurance policies and notwithstanding chapter 144G, a housing with services 
183.21 	establishment that is registered under section  144D.03 and that holds, or contracts makes 
183.22 	arrangements with an individual or entity that holds, a any type of home care license and 
183.23 	all other licenses, permits, registrations, or other governmental approvals legally required 
183.24 	for delivery of the services the establishment offers or provides to its residents, constitutes 
183.25 	an "assisted living facility" or "assisted living residence." 

183.26 	EFFECTIVE DATE. This section is effective January 1, 2007.

183.27 	Sec. 6. Minnesota Statutes 2004, section 144D.02, is amended to read:
183.28 	144D.02 REGISTRATION REQUIRED.
183.29 	No entity may establish, operate, conduct, or maintain an elderly a housing with 
183.30 	services establishment in this state without registering and operating as required in 
183.31 	sections  144D.01 to  144D.06. 

184.1 	EFFECTIVE DATE. This section is effective January 1, 2007.

184.2 	Sec. 7. Minnesota Statutes 2004, section 144D.03, is amended by adding a subdivision 
184.3 	to read:
184.4 		Subd. 1a.Surcharge for injunctive relief actions. The commissioner shall assess 
184.5 	each housing with services establishment that offers or provides assisted living under 
184.6 	chapter 144G a surcharge on the annual registration fee paid under subdivision 1, to pay 
184.7 	for the commissioner's costs related to bringing actions for injunctive relief under section 
184.8 	144G.02, subdivision 2, paragraph (b), on or after July 1, 2007. The commissioner shall 
184.9 	assess surcharges using a sliding scale under which the surcharge amount increases with 
184.10 	the client capacity of an establishment. The commissioner shall adjust the surcharge as 
184.11 	necessary to recover the projected costs of bringing actions for injunctive relief. The 
184.12 	commissioner shall adjust the surcharge in accordance with section 16A.1285.

184.13 	EFFECTIVE DATE. This section is effective for annual registrations submitted 
184.14 	on or after July 1, 2007.

184.15 	Sec. 8. Minnesota Statutes 2004, section 144D.03, subdivision 2, is amended to read:
184.16 		Subd. 2.Registration information. The establishment shall provide the following 
184.17 	information to the commissioner in order to be registered:
184.18 	(1) the business name, street address, and mailing address of the establishment;
184.19 	(2) the name and mailing address of the owner or owners of the establishment and, if 
184.20 	the owner or owners are not natural persons, identification of the type of business entity 
184.21 	of the owner or owners, and the names and addresses of the officers and members of the 
184.22 	governing body, or comparable persons for partnerships, limited liability corporations, or 
184.23 	other types of business organizations of the owner or owners;
184.24 	(3) the name and mailing address of the managing agent, whether through 
184.25 	management agreement or lease agreement, of the establishment, if different from the 
184.26 	owner or owners, and the name of the on-site manager, if any;
184.27 	(4) verification that the establishment has entered into an elderly a housing with 
184.28 	services contract, as required in section  144D.04, with each resident or resident's 
184.29 	representative; 
184.30 	(5) verification that the establishment is complying with the requirements of section  
184.31 	325F.72, if applicable; 
184.32 	(6) the name and address of at least one natural person who shall be responsible 
184.33 	for dealing with the commissioner on all matters provided for in sections  144D.01 to  
184.34 	144D.06, and on whom personal service of all notices and orders shall be made, and who 
185.1 	shall be authorized to accept service on behalf of the owner or owners and the managing 
185.2 	agent, if any; and 
185.3 	(7) the signature of the authorized representative of the owner or owners or, if 
185.4 	the owner or owners are not natural persons, signatures of at least two authorized 
185.5 	representatives of each owner, one of which shall be an officer of the owner.
185.6 	Personal service on the person identified under clause (6) by the owner or owners in 
185.7 	the registration shall be considered service on the owner or owners, and it shall not be a 
185.8 	defense to any action that personal service was not made on each individual or entity. The 
185.9 	designation of one or more individuals under this subdivision shall not affect the legal 
185.10 	responsibility of the owner or owners under sections  144D.01 to  144D.06. 

185.11 	EFFECTIVE DATE. This section is effective January 1, 2007.

185.12 	Sec. 9. Minnesota Statutes 2004, section 144D.04, is amended to read:
185.13 	144D.04 ELDERLY HOUSING WITH SERVICES CONTRACTS.
185.14 		Subdivision 1.Contract required. No elderly housing with services establishment 
185.15 	may operate in this state unless a written elderly housing with services contract, as defined 
185.16 	in subdivision 2, is executed between the establishment and each resident or resident's 
185.17 	representative and unless the establishment operates in accordance with the terms of the 
185.18 	contract. The resident or the resident's representative shall be given a complete copy of 
185.19 	the contract and all supporting documents and attachments and any changes whenever 
185.20 	changes are made.
185.21 		Subd. 2.Contents of contract. An elderly A housing with services contract, which 
185.22 	need not be entitled as such to comply with this section, shall include at least the following 
185.23 	elements in itself or through supporting documents or attachments:
185.24 	(1) the name, street address, and mailing address of the establishment;
185.25 	(2) the name and mailing address of the owner or owners of the establishment and, if 
185.26 	the owner or owners is not a natural person, identification of the type of business entity 
185.27 	of the owner or owners;
185.28 	(3) the name and mailing address of the managing agent, through management 
185.29 	agreement or lease agreement, of the establishment, if different from the owner or owners;
185.30 	(4) the name and address of at least one natural person who is authorized to accept 
185.31 	service of process on behalf of the owner or owners and managing agent;
185.32 	(5) a statement describing the registration and licensure status of the establishment 
185.33 	and any provider providing health-related or supportive services under an arrangement 
185.34 	with the establishment;
186.1 	(6) the term of the contract;
186.2 	(7) a description of the services to be provided to the resident in the base rate to 
186.3 	be paid by resident;
186.4 	(8) a description of any additional services, including home care services, available 
186.5 	for an additional fee from the establishment directly or through arrangements with the 
186.6 	establishment, and a schedule of fees charged for these services;
186.7 	(9) fee schedules outlining the cost of any additional services;
186.8 	(10) (9) a description of the process through which the contract may be modified, 
186.9 	amended, or terminated;
186.10 	(11) (10) a description of the establishment's complaint resolution process available 
186.11 	to residents including the toll-free complaint line for the Office of Ombudsman for Older 
186.12 	Minnesotans;
186.13 	(12) (11) the resident's designated representative, if any;
186.14 	(13) (12) the establishment's referral procedures if the contract is terminated;
186.15 	(14) criteria (13) requirements of residency used by the establishment to determine 
186.16 	who may reside or continue to reside in the elderly housing with services establishment;
186.17 	(15) (14) billing and payment procedures and requirements;
186.18 	(16) (15) a statement regarding the ability of residents to receive services from 
186.19 	service providers with whom the establishment does not have an arrangement; and
186.20 	(17) (16) a statement regarding the availability of public funds for payment for 
186.21 	residence or services in the establishment; and
186.22 	(17) a statement regarding the availability of and contact information for long- 
186.23 	term care consultation services under section 256B.0911 in the county in which the 
186.24 	establishment is located.
186.25 		Subd. 3.Contracts in permanent files. Elderly Housing with services contracts 
186.26 	and related documents executed by each resident or resident's representative shall be 
186.27 	maintained by the establishment in files from the date of execution until three years after 
186.28 	the contract is terminated. The contracts and the written disclosures required under section  
186.29 	325F.72, if applicable, shall be made available for on-site inspection by the commissioner 
186.30 	upon request at any time. 

186.31 	EFFECTIVE DATE. This section is effective January 1, 2007.

186.32 	Sec. 10. [144D.045] INFORMATION CONCERNING ARRANGED HOME 
186.33 	CARE PROVIDERS.
186.34 	If a housing with services establishment has one or more arranged home care 
186.35 	providers, the establishment shall arrange to have that arranged home care provider deliver 
187.1 	the following information in writing to a prospective resident, prior to the date on which 
187.2 	the prospective resident executes a contract with the establishment or the prospective 
187.3 	resident's move-in date, whichever is earlier:
187.4 	(1) the name, mailing address, and telephone number of the arranged home care 
187.5 	provider;
187.6 	(2) the name and mailing address of at least one natural person who is authorized to 
187.7 	accept service of process on behalf of the entity described in clause (1);
187.8 	(3) a description of the process through which a home care service agreement or 
187.9 	service plan between a resident and the arranged home care provider, if any, may be 
187.10 	modified, amended, or terminated;
187.11 	(4) the arranged home care provider's billing and payment procedures and 
187.12 	requirements; and
187.13 	(5) any limits to the services available from the arranged provider.

187.14 	EFFECTIVE DATE. This section is effective January 1, 2007.

187.15 	Sec. 11. Minnesota Statutes 2004, section 144D.05, is amended to read:
187.16 	144D.05 AUTHORITY OF COMMISSIONER.
187.17 	The commissioner shall, upon receipt of information which may indicate the failure 
187.18 	of the elderly housing with services establishment, a resident, a resident's representative, 
187.19 	or a service provider to comply with a legal requirement to which one or more of them 
187.20 	may be subject, make appropriate referrals to other governmental agencies and entities 
187.21 	having jurisdiction over the subject matter. The commissioner may also make referrals 
187.22 	to any public or private agency the commissioner considers available for appropriate 
187.23 	assistance to those involved.
187.24 	The commissioner shall have standing to bring an action for injunctive relief 
187.25 	in the district court in the district in which an establishment is located to compel the 
187.26 	elderly housing with services establishment to meet the requirements of this chapter or 
187.27 	other requirements of the state or of any county or local governmental unit to which the 
187.28 	establishment is otherwise subject. Proceedings for securing an injunction may be brought 
187.29 	by the commissioner through the attorney general or through the appropriate county 
187.30 	attorney. The sanctions in this section do not restrict the availability of other sanctions.

187.31 	EFFECTIVE DATE. This section is effective January 1, 2007.

188.1 	Sec. 12. Minnesota Statutes 2004, section 144D.065, is amended to read:
188.2 	144D.065 ESTABLISHMENTS THAT SERVE PERSONS WITH 
188.3 	ALZHEIMER'S DISEASE OR RELATED DISORDERS.
188.4 	(a) If a housing with services establishment registered under this chapter markets or 
188.5 	otherwise promotes services for persons with Alzheimer's disease or related disorders, 
188.6 	whether in a segregated or general unit, the facility's establishment's direct care staff and 
188.7 	their supervisors must be trained in dementia care.
188.8 	(b) Areas of required training include:
188.9 	(1) an explanation of Alzheimer's disease and related disorders;
188.10 	(2) assistance with activities of daily living;
188.11 	(3) problem solving with challenging behaviors; and
188.12 	(4) communication skills.
188.13 	(c) The establishment shall provide to consumers in written or electronic form a 
188.14 	description of the training program, the categories of employees trained, the frequency 
188.15 	of training, and the basic topics covered. This information satisfies the disclosure 
188.16 	requirements of section  325F.72, subdivision 2, clause (4). 

188.17 	EFFECTIVE DATE. This section is effective January 1, 2007.

188.18 	Sec. 13. [144G.01] DEFINITIONS.
188.19 		Subdivision 1.Scope; other definitions. For purposes of sections 144G.01 to 
188.20 	144G.05, the following definitions apply. In addition, the definitions provided in section 
188.21 	144D.01 also apply to sections 144G.01 to 144G.05.
188.22 		Subd. 2.Assisted living. "Assisted living" means a service or package of services 
188.23 	advertised, marketed, or otherwise described, offered, or promoted using the phrase 
188.24 	"assisted living" either alone or in combination with other words, whether orally or in 
188.25 	writing, and which is subject to the requirements of this chapter.
188.26 		Subd. 3.Assisted living client. "Assisted living client" or "client" means a housing 
188.27 	with services resident who receives assisted living that is subject to the requirements 
188.28 	of this chapter.
188.29 		Subd. 4.Commissioner. "Commissioner" means the commissioner of health.

188.30 	EFFECTIVE DATE. This section is effective January 1, 2007.

188.31 	Sec. 14. [144G.02] ASSISTED LIVING; PROTECTED TITLE; RESTRICTION 
188.32 	ON USE; REGULATORY FUNCTIONS.
189.1 		Subdivision 1.Protected title; restriction on use. No person or entity may use the 
189.2 	phrase "assisted living," whether alone or in combination with other words and whether 
189.3 	orally or in writing, to advertise, market, or otherwise describe, offer, or promote itself, or 
189.4 	any housing, service, service package, or program that it provides within this state, unless 
189.5 	the person or entity is a housing with services establishment that meets the requirements of 
189.6 	this chapter, or is a person or entity that provides some or all components of assisted living 
189.7 	that meet the requirements of this chapter. A person or entity entitled to use the phrase 
189.8 	"assisted living" shall use the phrase only in the context of its participation in assisted 
189.9 	living that meets the requirements of this chapter. A housing with services establishment 
189.10 	offering or providing assisted living that is not made available to residents in all of its 
189.11 	housing units shall identify the number or location of the units in which assisted living 
189.12 	is available, and may not use the term "assisted living" in the name of the establishment 
189.13 	registered with the commissioner under chapter 144D, or in the name the establishment 
189.14 	uses to identify itself to residents or the public.
189.15 		Subd. 2.Authority of commissioner. (a) The commissioner, upon receipt of 
189.16 	information that may indicate the failure of a housing with services establishment, the 
189.17 	arranged home care provider, an assisted living client, or an assisted living client's 
189.18 	representative to comply with a legal requirement to which one or more of the entities may 
189.19 	be subject, shall make appropriate referrals to other governmental agencies and entities 
189.20 	having jurisdiction over the subject matter. The commissioner may also make referrals 
189.21 	to any public or private agency the commissioner considers available for appropriate 
189.22 	assistance to those involved.
189.23 	(b) In addition to the authority with respect to licensed home care providers under 
189.24 	sections 144A.45 and 144A.46 and with respect to housing with services establishments 
189.25 	under chapter 144D, the commissioner shall have standing to bring an action for injunctive 
189.26 	relief in the district court in the district in which a housing with services establishment 
189.27 	is located to compel the housing with services establishment or the arranged home care 
189.28 	provider to meet the requirements of this chapter or other requirements of the state or of 
189.29 	any county or local governmental unit to which the establishment or arranged home care 
189.30 	provider is otherwise subject. Proceedings for securing an injunction may be brought by 
189.31 	the commissioner through the attorney general or through the appropriate county attorney. 
189.32 	The sanctions in this section do not restrict the availability of other sanctions.

189.33 	EFFECTIVE DATE. This section is effective January 1, 2007.

189.34 	Sec. 15. [144G.03] ASSISTED LIVING REQUIREMENTS.
190.1 		Subdivision 1.Verification in annual registration. A registered housing with 
190.2 	services establishment using the phrase "assisted living," pursuant to section 144G.02, 
190.3 	subdivision 1, shall verify to the commissioner in its annual registration pursuant to chapter 
190.4 	144D that the establishment is complying with sections 144G.01 to 144G.05, as applicable.
190.5 		Subd. 2.Minimum requirements for assisted living. (a) Assisted living shall 
190.6 	be provided or made available only to individuals residing in a registered housing with 
190.7 	services establishment. Except as expressly stated in this chapter, a person or entity 
190.8 	offering assisted living may define the available services and may offer assisted living to 
190.9 	all or some of the residents of a housing with services establishment. The services that 
190.10 	comprise assisted living may be provided or made available directly by a housing with 
190.11 	services establishment or by persons or entities with which the housing with services 
190.12 	establishment has made arrangements.
190.13 	(b) A person or entity entitled to use the phrase "assisted living," according to 
190.14 	section 144G.02, subdivision 1, shall do so only with respect to a housing with services 
190.15 	establishment, or a service, service package, or program available within a housing with 
190.16 	services establishment that, at a minimum:
190.17 	(1) provides or makes available health-related services under a class A or class F 
190.18 	home care license. At a minimum, health-related services must include:
190.19 	(i) assistance with self-administration of medication as defined in Minnesota Rules, 
190.20 	part 4668.0003, subpart 2a, or medication administration as defined in Minnesota Rules, 
190.21 	part 4668.0003, subpart 21a; and
190.22 	(ii) assistance with at least three of the following seven activities of daily living: 
190.23 	bathing, dressing, grooming, eating, transferring, continence care, and toileting. 
190.24 	All health-related services shall be provided in a manner that complies with applicable 
190.25 	home care licensure requirements in chapter 144A, sections 148.171 to 148.285, and 
190.26 	Minnesota Rules, chapter 4668;
190.27 	(2) provides necessary assessments of the physical and cognitive needs of assisted 
190.28 	living clients by a registered nurse, as required by applicable home care licensure 
190.29 	requirements in chapter 144A, sections 148.171 to 148.285, and Minnesota Rules, chapter 
190.30 	4668;
190.31 	(3) has and maintains a system for delegation of health care activities to unlicensed 
190.32 	assistive health care personnel by a registered nurse, including supervision and evaluation 
190.33 	of the delegated activities as required by applicable home care licensure requirements in 
190.34 	chapter 144A, sections 148.171 to 148.285, and Minnesota Rules, chapter 4668;
190.35 	(4) provides staff access to an on-call registered nurse 24 hours per day, seven 
190.36 	days per week;
191.1 	(5) has and maintains a system to check on each assisted living client at least daily;
191.2 	(6) provides a means for assisted living clients to request assistance for health and 
191.3 	safety needs 24 hours per day, seven days per week, from the establishment or a person or 
191.4 	entity with which the establishment has made arrangements;
191.5 	(7) has a person or persons available 24 hours per day, seven days per week, who 
191.6 	is responsible for responding to the requests of assisted living clients for assistance with 
191.7 	health or safety needs, who shall be:
191.8 	(i)	awake;
191.9 	(ii) located in the same building, in an attached building, or on a contiguous campus 
191.10 	with the housing with services establishment in order to respond within a reasonable 
191.11 	amount of time;
191.12 	(iii) capable of communicating with assisted living clients;
191.13 	(iv) capable of recognizing the need for assistance;
191.14 	(v) capable of providing either the assistance required or summoning the appropriate 
191.15 	assistance; and
191.16 	(vi) capable of following directions;
191.17 	(8) offers to provide or make available at least the following supportive services 
191.18 	to assisted living clients:
191.19 	(i) two meals per day;
191.20 	(ii) weekly housekeeping;
191.21 	(iii) weekly laundry service;
191.22 	(iv) upon the request of the client, reasonable assistance with arranging for 
191.23 	transportation to medical and social services appointments, and the name of or other 
191.24 	identifying information about the person or persons responsible for providing this 
191.25 	assistance;
191.26 	(v) upon the request of the client, reasonable assistance with accessing community 
191.27 	resources and social services available in the community, and the name of or other 
191.28 	identifying information about the person or persons responsible for providing this 
191.29 	assistance; and
191.30 	(vi) periodic opportunities for socialization; and
191.31 	(9) makes available to all prospective and current assisted living clients information 
191.32 	consistent with the uniform format and the required components adopted by the 
191.33 	commissioner under section 144G.06. This information must be made available beginning 
191.34 	no later than six months after the commissioner makes the uniform format and required 
191.35 	components available to providers according to section 144G.06.
192.1 		Subd. 3.Exemption from awake-staff requirement. (a) A housing with services 
192.2 	establishment that offers or provides assisted living is exempt from the requirement in 
192.3 	subdivision 2, paragraph (b), clause (7), item (i), that the person or persons available and 
192.4 	responsible for responding to requests for assistance must be awake, if the establishment 
192.5 	meets the following requirements:
192.6 	(1) the establishment has a maximum capacity to serve 12 or fewer assisted living 
192.7 	clients;
192.8 	(2) the person or persons available and responsible for responding to requests for 
192.9 	assistance are physically present within the housing with services establishment in which 
192.10 	the assisted living clients reside;
192.11 	(3) the establishment has a system in place that is compatible with the health, safety, 
192.12 	and welfare of the establishment's assisted living clients;
192.13 	(4) the establishment's housing with services contract, as required by section 
192.14 	144D.04, includes a statement disclosing the establishment's qualification for, and 
192.15 	intention to rely upon, this exemption;
192.16 	(5) the establishment files with the commissioner, for purposes of public information 
192.17 	but not review or approval by the commissioner, a statement describing how the 
192.18 	establishment meets the conditions in clauses (1) to (4), and makes a copy of this statement 
192.19 	available to actual and prospective assisted living clients; and 
192.20 	(6) the establishment indicates on its housing with services registration, under 
192.21 	section 144D.02 or 144D.03, as applicable, that it qualifies for and intends to rely upon the 
192.22 	exemption under this subdivision.
192.23 		Subd. 4.Nursing assessment. (a) A housing with services establishment offering or 
192.24 	providing assisted living shall:
192.25 	(1) offer to have the arranged home care provider conduct a nursing assessment by 
192.26 	a registered nurse of the physical and cognitive needs of the prospective resident and 
192.27 	propose a service agreement or service plan prior to the date on which a prospective 
192.28 	resident executes a contract with a housing with services establishment or the date on 
192.29 	which a prospective resident moves in, whichever is earlier; and
192.30 	(2) inform the prospective resident of the availability of and contact information for 
192.31 	long-term care consultation services under section 256B.0911, prior to the date on which a 
192.32 	prospective resident executes a contract with a housing with services establishment or the 
192.33 	date on which a prospective resident moves in, whichever is earlier.
192.34 	(b) An arranged home care provider is not obligated to conduct a nursing assessment 
192.35 	by a registered nurse when requested by a prospective resident if either the geographic 
192.36 	distance between the prospective resident and the provider, or urgent or unexpected 
193.1 	circumstances, do not permit the assessment to be conducted prior to the date on which 
193.2 	the prospective resident executes a contract or moves in, whichever is earlier. When such 
193.3 	circumstances occur, the arranged home care provider shall offer to conduct a telephone 
193.4 	conference whenever reasonably possible. 
193.5 	(c) The arranged home care provider shall comply with applicable home care 
193.6 	licensure requirements in chapter 144A, sections 148.171 to 148.285, and Minnesota 
193.7 	Rules, chapter 4668, with respect to the provision of a nursing assessment prior to the 
193.8 	delivery of nursing services and the execution of a home care service plan or service 
193.9 	agreement.
193.10 		Subd. 5.Assistance with arranged home care provider. The housing with services 
193.11 	establishment shall provide each assisted living client with identifying information about a 
193.12 	person or persons reasonably available to assist the client with concerns the client may 
193.13 	have with respect to the services provided by the arranged home care provider. The 
193.14 	establishment shall keep each assisted living client reasonably informed of any changes in 
193.15 	the personnel referenced in this subdivision. Upon request of the assisted living client, 
193.16 	such personnel or designee shall provide reasonable assistance to the assisted living client 
193.17 	in addressing concerns regarding services provided by the arranged home care provider.
193.18 		Subd. 6.Termination of housing with services contract. If a housing with 
193.19 	services establishment terminates a housing with services contract with an assisted living 
193.20 	client, the establishment shall provide the assisted living client, and the legal or designated 
193.21 	representative of the assisted living client, if any, with a written notice of termination 
193.22 	which includes the following information:
193.23 	(1) the effective date of termination;
193.24 	(2) the section of the contract that authorizes the termination;
193.25 	(3) without extending the termination notice period, an affirmative offer to meet with 
193.26 	the assisted living client and, if applicable, client representatives, within no more than five 
193.27 	business days of the date of the termination notice to discuss the termination;
193.28 	(4) an explanation that:
193.29 	(i) the assisted living client must vacate the apartment, along with all personal 
193.30 	possessions, on or before the effective date of termination;
193.31 	(ii) failure to vacate the apartment by the date of termination may result in the filing 
193.32 	of an eviction action in court by the establishment, and that the assisted living client may 
193.33 	present a defense, if any, to the court at that time; and 
193.34 	(iii) the assisted living client may seek legal counsel in connection with the notice 
193.35 	of termination;
194.1 	(5) a statement that, with respect to the notice of termination, reasonable 
194.2 	accommodation is available for the disability of the assisted living client, if any; and
194.3 	(6) the name and contact information of the representative of the establishment 
194.4 	with whom the assisted living client or client representatives may discuss the notice of 
194.5 	termination.

194.6 	EFFECTIVE DATE. This section is effective January 1, 2007.

194.7 	Sec. 16. [144G.04] RESERVATION OF RIGHTS.
194.8 		Subdivision 1.Use of services. Nothing in this chapter requires an assisted living 
194.9 	client to utilize any service provided or made available in assisted living.
194.10 		Subd. 2.Housing with services contracts. Nothing in this chapter requires a 
194.11 	housing with services establishment to execute or refrain from terminating a housing with 
194.12 	services contract with a prospective or current resident who is unable or unwilling to meet 
194.13 	the requirements of residency, with or without assistance. 
194.14 		Subd. 3.Provision of services. Nothing in this chapter requires the arranged home 
194.15 	care provider to offer or continue to provide services under a service agreement or service 
194.16 	plan to a prospective or current resident of the establishment whose needs cannot be 
194.17 	met by the arranged home care provider.
194.18 		Subd. 4.Altering operations; service packages. Nothing in this chapter requires 
194.19 	a housing with services establishment or arranged home care provider offering assisted 
194.20 	living to fundamentally alter the nature of the operations of the establishment or the 
194.21 	provider in order to accommodate the request or need for facilities or services by any 
194.22 	assisted living client, or to refrain from requiring, as a condition of residency, that an 
194.23 	assisted living client pay for a package of assisted living services even if the client does 
194.24 	not choose to utilize all or some of the services in the package.

194.25 	EFFECTIVE DATE. This section is effective January 1, 2007.

194.26 	Sec. 17. [144G.05] REIMBURSEMENT UNDER ASSISTED LIVING SERVICE 
194.27 	PACKAGES.
194.28 	Notwithstanding the provisions of this chapter, the requirements for the Elderly 
194.29 	Waiver program's assisted living payment rates under section 256B.0915, subdivision 
194.30 	3e, shall continue to be effective and providers who do not meet the requirements of 
194.31 	this chapter may continue to receive payment under section 256B.0915, subdivision 3e, 
194.32 	as long as they continue to meet the definitions and standards for assisted living and 
194.33 	assisted living plus set forth in the federally approved Elderly Home and Community 
195.1 	Based Services Waiver Program (Control Number 0025.91). Providers of assisted living 
195.2 	for the Community Alternatives for Disabled Individuals (CADI) and Traumatic Brain 
195.3 	Injury (TBI) waivers shall continue to receive payment as long as they continue to meet 
195.4 	the definitions and standards for assisted living and assisted living plus set forth in the 
195.5 	federally approved CADI and TBI waiver plans.

195.6 	EFFECTIVE DATE. This section is effective January 1, 2007.

195.7 	Sec. 18. [144G.06] UNIFORM CONSUMER INFORMATION GUIDE.
195.8 	(a) The commissioner of health shall establish an advisory committee consisting 
195.9 	of representatives of consumers, providers, county and state officials, and other 
195.10 	groups the commissioner considers appropriate. The advisory committee shall present 
195.11 	recommendations to the commissioner on:
195.12 	(1) a format for a guide to be used by individual providers of assisted living, as 
195.13 	defined in section 144G.01, that includes information about services offered by that 
195.14 	provider, service costs, and other relevant provider-specific information, as well as a 
195.15 	statement of philosophy and values associated with assisted living, presented in uniform 
195.16 	categories that facilitate comparison with guides issued by other providers; and
195.17 	(2) requirements for informing assisted living clients, as defined in section 144G.01, 
195.18 	of their applicable legal rights.
195.19 	(b) The commissioner, after reviewing the recommendations of the advisory 
195.20 	committee, shall adopt a uniform format for the guide to be used by individual providers, 
195.21 	and the required components of materials to be used by providers to inform assisted 
195.22 	living clients of their legal rights, and shall make the uniform format and the required 
195.23 	components available to assisted living providers.

195.24 	Sec. 19. REVISOR'S INSTRUCTION.
 195.25 	(a) The revisor of statutes shall strike all references to the "Class E assisted living 
195.26 	home care programs license," "Class E license," and similar terms in Minnesota Rules, 
195.27 	chapters 4668 and 4669. In sections affected by this instruction, the revisor may make 
195.28 	changes necessary to correct the punctuation, grammar, or structure of the remaining text 
195.29 	and preserve its meaning.
195.30 	(b) The revisor of statutes shall change the term "assisted living home care provider," 
195.31 	"assisted living license," and similar terms to "Class F home care provider," "Class F 
195.32 	license," and similar terms, in Minnesota Rules, chapter 4668. In sections affected by this 
195.33 	instruction, the revisor may make changes necessary to correct the punctuation, grammar, 
195.34 	or structure of the remaining text and preserve its meaning.

196.1 	EFFECTIVE DATE. This section is effective January 1, 2007.

196.2 	Sec. 20.  REPEALER.
 196.3 	Minnesota Rules, part 4668.0215, is repealed effective January 1, 2007.

196.4 	ARTICLE 20
196.5 	LONG-TERM CARE

196.6 	Section 1. Minnesota Statutes 2004, section 144.0724, subdivision 3, is amended to 
196.7 	read:
196.8 		Subd. 3.Resident reimbursement classifications. (a) Resident reimbursement 
196.9 	classifications shall be based on the minimum data set, version 2.0 assessment instrument, 
196.10 	or its successor version mandated by the Centers for Medicare and Medicaid Services 
196.11 	that nursing facilities are required to complete for all residents. The commissioner of 
196.12 	health shall establish resident classes according to the 34 group, resource utilization 
196.13 	groups, version III or RUG-III model. Resident classes must be established based on the 
196.14 	individual items on the minimum data set and must be completed according to the facility 
196.15 	manual for case mix classification issued by the Minnesota Department of Health. The 
196.16 	facility manual for case mix classification shall be drafted by the Minnesota Department 
196.17 	of Health and presented to the chairs of health and human services legislative committees 
196.18 	by December 31, 2001.
196.19 	(b) Each resident must be classified based on the information from the minimum 
196.20 	data set according to general domains in clauses (1) to (7):
196.21 	(1) extensive services where a resident requires intravenous feeding or medications, 
196.22 	suctioning, or tracheostomy care, or is on a ventilator or respirator;
196.23 	(2) rehabilitation where a resident requires physical, occupational, or speech therapy;
196.24 	(3) special care where a resident has cerebral palsy; quadriplegia; multiple sclerosis; 
196.25 	pressure ulcers; ulcers; fever with vomiting, weight loss, pneumonia, or dehydration; 
196.26 	surgical wounds with treatment; or tube feeding and aphasia; or is receiving radiation 
196.27 	therapy;
196.28 	(4) clinically complex status where a resident has tube feeding, burns, coma, 
196.29 	septicemia, pneumonia, internal bleeding, chemotherapy, dialysis, oxygen, transfusions, 
196.30 	foot infections or lesions with treatment, heiplegia/hemiparesis hemiplegia/hemiparesis, 
196.31 	physician visits or order changes, or diabetes with injections and order changes;
196.32 	(5) impaired cognition where a resident has poor cognitive performance;
196.33 	(6) behavior problems where a resident exhibits wandering or socially inappropriate 
196.34 	or disruptive behavior, has hallucinations or delusions, is physically or verbally abusive 
197.1 	toward others, or resists care, unless the resident's other condition would place the resident 
197.2 	in other categories; and
197.3 	(7) reduced physical functioning where a resident has no special clinical conditions.
197.4 	(c) The commissioner of health shall establish resident classification according to a 
197.5 	34 group model based on the information on the minimum data set and within the general 
197.6 	domains listed in paragraph (b), clauses (1) to (7). Detailed descriptions of each resource 
197.7 	utilization group shall be defined in the facility manual for case mix classification issued 
197.8 	by the Minnesota Department of Health. The 34 groups are described as follows:
197.9 	(1) SE3: requires four or five extensive services;
197.10 	(2) SE2: requires two or three extensive services;
197.11 	(3) SE1: requires one extensive service;
197.12 	(4) RAD: requires rehabilitation services and is dependent in activity of daily living 
197.13 	(ADL) at a count of 17 or 18;
197.14 	(5) RAC: requires rehabilitation services and ADL count is 14 to 16;
197.15 	(6) RAB: requires rehabilitation services and ADL count is ten to 13;
197.16 	(7) RAA: requires rehabilitation services and ADL count is four to nine;
197.17 	(8) SSC: requires special care and ADL count is 17 or 18;
197.18 	(9) SSB: requires special care and ADL count is 15 or 16;
197.19 	(10) SSA: requires special care and ADL count is seven to 14;
197.20 	(11) CC2: clinically complex with depression and ADL count is 17 or 18;
197.21 	(12) CC1: clinically complex with no depression and ADL count is 17 or 18;
197.22 	(13) CB2: clinically complex with depression and ADL count is 12 to 16;
197.23 	(14) CB1: clinically complex with no depression and ADL count is 12 to 16;
197.24 	(15) CA2: clinically complex with depression and ADL count is four to 11;
197.25 	(16) CA1: clinically complex with no depression and ADL count is four to 11;
197.26 	(17) IB2: impaired cognition with nursing rehabilitation and ADL count is six to ten;
197.27 	(18) IB1: impaired cognition with no nursing rehabilitation and ADL count is six 
197.28 	to ten;
197.29 	(19) IA2: impaired cognition with nursing rehabilitation and ADL count is four or 
197.30 	five;
197.31 	(20) IA1: impaired cognition with no nursing rehabilitation and ADL count is four 
197.32 	or five;
197.33 	(21) BB2: behavior problems with nursing rehabilitation and ADL count is six to ten;
197.34 	(22) BB1: behavior problems with no nursing rehabilitation and ADL count is 
197.35 	six to ten;
198.1 	(23) BA2: behavior problems with nursing rehabilitation and ADL count is four to 
198.2 	five;
198.3 	(24) BA1: behavior problems with no nursing rehabilitation and ADL count is 
198.4 	four to five;
198.5 	(25) PE2: reduced physical functioning with nursing rehabilitation and ADL count 
198.6 	is 16 to 18;
198.7 	(26) PE1: reduced physical functioning with no nursing rehabilitation and ADL 
198.8 	count is 16 to 18;
198.9 	(27) PD2: reduced physical functioning with nursing rehabilitation and ADL count 
198.10 	is 11 to 15;
198.11 	(28) PD1: reduced physical functioning with no nursing rehabilitation and ADL 
198.12 	count is 11 to 15;
198.13 	(29) PC2: reduced physical functioning with nursing rehabilitation and ADL count 
198.14 	is nine or ten;
198.15 	(30) PC1: reduced physical functioning with no nursing rehabilitation and ADL 
198.16 	count is nine or ten;
198.17 	(31) PB2: reduced physical functioning with nursing rehabilitation and ADL count 
198.18 	is six to eight;
198.19 	(32) PB1: reduced physical functioning with no nursing rehabilitation and ADL 
198.20 	count is six to eight;
198.21 	(33) PA2: reduced physical functioning with nursing rehabilitation and ADL count 
198.22 	is four or five; and
198.23 	(34) PA1: reduced physical functioning with no nursing rehabilitation and ADL 
198.24 	count is four or five.

198.25 	Sec. 2. Minnesota Statutes 2004, section 144.0724, subdivision 4, is amended to read:
198.26 		Subd. 4.Resident assessment schedule. (a) A facility must conduct and 
198.27 	electronically submit to the commissioner of health case mix assessments that conform 
198.28 	with the assessment schedule defined by Code of Federal Regulations, title 42, section  
198.29 	483.20, and published by the United States Department of Health and Human Services, 
198.30 	Centers for Medicare and Medicaid Services, in the Long Term Care Assessment 
198.31 	Instrument User's Manual, version 2.0, October 1995, and subsequent clarifications made 
198.32 	in the Long-Term Care Assessment Instrument Questions and Answers, version 2.0, 
198.33 	August 1996. The commissioner of health may substitute successor manuals or question 
198.34 	and answer documents published by the United States Department of Health and Human 
199.1 	Services, Centers for Medicare and Medicaid Services, to replace or supplement the 
199.2 	current version of the manual or document. 
199.3 	(b) The assessments used to determine a case mix classification for reimbursement 
199.4 	include the following:
199.5 	(1) a new admission assessment must be completed by day 14 following admission;
199.6 	(2) an annual assessment must be completed within 366 days of the last 
199.7 	comprehensive assessment;
199.8 	(3) a significant change assessment must be completed within 14 days of the 
199.9 	identification of a significant change; and
199.10 	(4) the second quarterly assessment following either a new admission assessment, 
199.11 	an annual assessment, or a significant change assessment, and all quarterly assessments 
199.12 	beginning October 1, 2006. Each quarterly assessment must be completed within 92 
199.13 	days of the previous assessment.

199.14 	Sec. 3. Minnesota Statutes 2005 Supplement, section 144A.071, subdivision 1a, 
199.15 	is amended to read:
199.16 		Subd. 1a.Definitions. For purposes of sections 144A.071 to 144A.073, the 
199.17 	following terms have the meanings given them:
199.18 	(a) "Attached fixtures" has the meaning given in Minnesota Rules, part 9549.0020, 
199.19 	subpart 6.
199.20 	(b) "Buildings" has the meaning given in Minnesota Rules, part 9549.0020, subpart 
199.21 	7.
199.22 	(c) "Capital assets" has the meaning given in section 256B.421, subdivision 16.
199.23 	(d) "Commenced construction" means that all of the following conditions were met: 
199.24 	the final working drawings and specifications were approved by the commissioner of 
199.25 	health; the construction contracts were let; a timely construction schedule was developed, 
199.26 	stipulating dates for beginning, achieving various stages, and completing construction; 
199.27 	and all zoning and building permits were applied for.
199.28 	(e) "Completion date" means the date on which a certificate of occupancy clearance 
199.29 	for the construction project is issued for a construction project, or if a certificate of 
199.30 	occupancy clearance for the construction project is not required, the date on which the 
199.31 	construction project is assets are available for facility use.
199.32 	(f) "Construction" means any erection, building, alteration, reconstruction, 
199.33 	modernization, or improvement necessary to comply with the nursing home licensure 
199.34 	rules.
199.35 	(g) "Construction project" means:
200.1 	(1) a capital asset addition to, or replacement of a nursing home or certified boarding 
200.2 	care home that results in new space or the remodeling of or renovations to existing 
200.3 	facility space; and
200.4 	(2) the remodeling or renovation of existing facility space the use of which is 
200.5 	modified as a result of the project described in clause (1). This existing space and the 
200.6 	project described in clause (1) must be used for the functions as designated on the 
200.7 	construction plans on completion of the project described in clause (1) for a period of 
200.8 	not less than 24 months.
200.9 	(h) "Depreciation guidelines" means the most recent publication of "The Estimated 
200.10 	Useful Lives of Depreciable Hospital Assets," issued by the American Hospital 
200.11 	Association, 840 North Lake Shore Drive, Chicago, Illinois, 60611.
200.12 	(i) "New licensed" or "new certified beds" means:
200.13 	(1) newly constructed beds in a facility or the construction of a new facility that 
200.14 	would increase the total number of licensed nursing home beds or certified boarding 
200.15 	care or nursing home beds in the state; or
200.16 	(2) newly licensed nursing home beds or newly certified boarding care or nursing 
200.17 	home beds that result from remodeling of the facility that involves relocation of beds but 
200.18 	does not result in an increase in the total number of beds, except when the project involves 
200.19 	the upgrade of boarding care beds to nursing home beds, as defined in section 144A.073, 
200.20 	subdivision 1. "Remodeling" includes any of the type of conversion, renovation, 
200.21 	replacement, or upgrading projects as defined in section 144A.073, subdivision 1.
200.22 	(j) "Project construction costs" means the cost of the following items that have 
200.23 	a completion date within 12 months before or after the completion date of the project 
200.24 	described in item (g), clause (1):
200.25 	(1) facility capital asset additions;
200.26 	(2) replacements;
200.27 	(3) renovations;
200.28 	(4) remodeling projects;
200.29 	(5) construction site preparation costs;
200.30 	(6) related soft costs; and
200.31 	(7) the cost of new technology implemented as part of the construction project 
200.32 	and depreciable equipment directly identified to the project, if the construction costs for 
200.33 	clauses (1) to (6) exceed the threshold for additions and replacements stated in section 
200.34 	256B.431, subdivision 16. Technology and depreciable equipment shall be included in the 
200.35 	project construction costs unless a written election is made by the facility, to not include 
200.36 	it in the facility's appraised value for purposes of Minnesota Rules, part 9549.0020, 
201.1 	subpart 5. Debt incurred for purchase of technology and depreciable equipment shall be 
201.2 	included as allowable debt for purposes of Minnesota Rules, part 9549.0060, subpart 5, 
201.3 	items A and C, unless the written election is to not include it. Any new technology and 
201.4 	depreciable equipment included in the project construction costs that the facility elects 
201.5 	not to include in its appraised value and allowable debt shall be treated as provided in 
201.6 	section 256B.431, subdivision 17, paragraph (b). Written election under this paragraph 
201.7 	must be included in the facility's request for the rate change related to the project, and 
201.8 	this election may not be changed.
201.9 	(k) "Technology" means information systems or devices that make documentation, 
201.10 	charting, and staff time more efficient or encourage and allow for care through alternative 
201.11 	settings including, but not limited to, touch screens, monitors, hand-helds, swipe cards, 
201.12 	motion detectors, pagers, telemedicine, medication dispensers, and equipment to monitor 
201.13 	vital signs and self-injections, and to observe skin and other conditions.

201.14 	Sec. 4. Minnesota Statutes 2004, section 144A.071, subdivision 4a, is amended to read:
201.15 		Subd. 4a.Exceptions for replacement beds.  It is in the best interest of the state 
201.16 	to ensure that nursing homes and boarding care homes continue to meet the physical 
201.17 	plant licensing and certification requirements by permitting certain construction projects.  
201.18 	Facilities should be maintained in condition to satisfy the physical and emotional needs 
201.19 	of residents while allowing the state to maintain control over nursing home expenditure 
201.20 	growth.
201.21 	The commissioner of health in coordination with the commissioner of human 
201.22 	services, may approve the renovation, replacement, upgrading, or relocation of a nursing 
201.23 	home or boarding care home, under the following conditions:
201.24 	(a) to license or certify beds in a new facility constructed to replace a facility or to 
201.25 	make repairs in an existing facility that was destroyed or damaged after June 30, 1987, by 
201.26 	fire, lightning, or other hazard provided:
201.27 	(i) destruction was not caused by the intentional act of or at the direction of a 
201.28 	controlling person of the facility;
201.29 	(ii) at the time the facility was destroyed or damaged the controlling persons of the 
201.30 	facility maintained insurance coverage for the type of hazard that occurred in an amount 
201.31 	that a reasonable person would conclude was adequate;
201.32 	(iii) the net proceeds from an insurance settlement for the damages caused by the 
201.33 	hazard are applied to the cost of the new facility or repairs;
201.34 	(iv) the new facility is constructed on the same site as the destroyed facility or on 
201.35 	another site subject to the restrictions in section 144A.073, subdivision 5;
202.1 	(v) the number of licensed and certified beds in the new facility does not exceed the 
202.2 	number of licensed and certified beds in the destroyed facility; and
202.3 	(vi) the commissioner determines that the replacement beds are needed to prevent an 
202.4 	inadequate supply of beds.
202.5 	Project construction costs incurred for repairs authorized under this clause shall not be 
202.6 	considered in the dollar threshold amount defined in subdivision 2;
202.7 	(b) to license or certify beds that are moved from one location to another within a 
202.8 	nursing home facility, provided the total costs of remodeling performed in conjunction 
202.9 	with the relocation of beds does not exceed $1,000,000;
202.10 	(c) to license or certify beds in a project recommended for approval under section 
202.11 	144A.073;
202.12 	(d) to license or certify beds that are moved from an existing state nursing home to 
202.13 	a different state facility, provided there is no net increase in the number of state nursing 
202.14 	home beds;
202.15 	(e) to certify and license as nursing home beds boarding care beds in a certified 
202.16 	boarding care facility if the beds meet the standards for nursing home licensure, or in a 
202.17 	facility that was granted an exception to the moratorium under section 144A.073, and if 
202.18 	the cost of any remodeling of the facility does not exceed $1,000,000.  If boarding care 
202.19 	beds are licensed as nursing home beds, the number of boarding care beds in the facility 
202.20 	must not increase beyond the number remaining at the time of the upgrade in licensure.  
202.21 	The provisions contained in section 144A.073 regarding the upgrading of the facilities 
202.22 	do not apply to facilities that satisfy these requirements;
202.23 	(f) to license and certify up to 40 beds transferred from an existing facility owned and 
202.24 	operated by the Amherst H. Wilder Foundation in the city of St. Paul to a new unit at the 
202.25 	same location as the existing facility that will serve persons with Alzheimer's disease and 
202.26 	other related disorders.  The transfer of beds may occur gradually or in stages, provided 
202.27 	the total number of beds transferred does not exceed 40.  At the time of licensure and 
202.28 	certification of a bed or beds in the new unit, the commissioner of health shall delicense 
202.29 	and decertify the same number of beds in the existing facility.  As a condition of receiving 
202.30 	a license or certification under this clause, the facility must make a written commitment 
202.31 	to the commissioner of human services that it will not seek to receive an increase in its 
202.32 	property-related payment rate as a result of the transfers allowed under this paragraph;
202.33 	(g) to license and certify nursing home beds to replace currently licensed and certified 
202.34 	boarding care beds which may be located either in a remodeled or renovated boarding care 
202.35 	or nursing home facility or in a remodeled, renovated, newly constructed, or replacement 
202.36 	nursing home facility within the identifiable complex of health care facilities in which the 
203.1 	currently licensed boarding care beds are presently located, provided that the number of 
203.2 	boarding care beds in the facility or complex are decreased by the number to be licensed 
203.3 	as nursing home beds and further provided that, if the total costs of new construction, 
203.4 	replacement, remodeling, or renovation exceed ten percent of the appraised value of 
203.5 	the facility or $200,000, whichever is less, the facility makes a written commitment to 
203.6 	the commissioner of human services that it will not seek to receive an increase in its 
203.7 	property-related payment rate by reason of the new construction, replacement, remodeling, 
203.8 	or renovation.  The provisions contained in section 144A.073 regarding the upgrading of 
203.9 	facilities do not apply to facilities that satisfy these requirements;
203.10 	(h) to license as a nursing home and certify as a nursing facility a facility that is 
203.11 	licensed as a boarding care facility but not certified under the medical assistance program, 
203.12 	but only if the commissioner of human services certifies to the commissioner of health that 
203.13 	licensing the facility as a nursing home and certifying the facility as a nursing facility will 
203.14 	result in a net annual savings to the state general fund of $200,000 or more;
203.15 	(i) to certify, after September 30, 1992, and prior to July 1, 1993, existing nursing 
203.16 	home beds in a facility that was licensed and in operation prior to January 1, 1992;
203.17 	(j) to license and certify new nursing home beds to replace beds in a facility acquired 
203.18 	by the Minneapolis Community Development Agency as part of redevelopment activities 
203.19 	in a city of the first class, provided the new facility is located within three miles of the site 
203.20 	of the old facility.  Operating and property costs for the new facility must be determined 
203.21 	and allowed under section 256B.431 or 256B.434;
203.22 	(k) to license and certify up to 20 new nursing home beds in a community-operated 
203.23 	hospital and attached convalescent and nursing care facility with 40 beds on April 21, 
203.24 	1991, that suspended operation of the hospital in April 1986.  The commissioner of human 
203.25 	services shall provide the facility with the same per diem property-related payment rate 
203.26 	for each additional licensed and certified bed as it will receive for its existing 40 beds;
203.27 	(l) to license or certify beds in renovation, replacement, or upgrading projects as 
203.28 	defined in section 144A.073, subdivision 1, so long as the cumulative total costs of the 
203.29 	facility's remodeling projects do not exceed $1,000,000;
203.30 	(m) to license and certify beds that are moved from one location to another for the 
203.31 	purposes of converting up to five four-bed wards to single or double occupancy rooms 
203.32 	in a nursing home that, as of January 1, 1993, was county-owned and had a licensed 
203.33 	capacity of 115 beds;
203.34 	(n) to allow a facility that on April 16, 1993, was a 106-bed licensed and certified 
203.35 	nursing facility located in Minneapolis to layaway all of its licensed and certified nursing 
203.36 	home beds.  These beds may be relicensed and recertified in a newly constructed teaching 
204.1 	nursing home facility affiliated with a teaching hospital upon approval by the legislature.  
204.2 	The proposal must be developed in consultation with the interagency committee on 
204.3 	long-term care planning.  The beds on layaway status shall have the same status as 
204.4 	voluntarily delicensed and decertified beds, except that beds on layaway status remain 
204.5 	subject to the surcharge in section 256.9657.  This layaway provision expires July 1, 1998;
204.6 	(o) to allow a project which will be completed in conjunction with an approved 
204.7 	moratorium exception project for a nursing home in southern Cass County and which is 
204.8 	directly related to that portion of the facility that must be repaired, renovated, or replaced, 
204.9 	to correct an emergency plumbing problem for which a state correction order has been 
204.10 	issued and which must be corrected by August 31, 1993;
204.11 	(p) to allow a facility that on April 16, 1993, was a 368-bed licensed and certified 
204.12 	nursing facility located in Minneapolis to layaway, upon 30 days prior written notice to 
204.13 	the commissioner, up to 30 of the facility's licensed and certified beds by converting 
204.14 	three-bed wards to single or double occupancy.  Beds on layaway status shall have the 
204.15 	same status as voluntarily delicensed and decertified beds except that beds on layaway 
204.16 	status remain subject to the surcharge in section 256.9657, remain subject to the license 
204.17 	application and renewal fees under section 144A.07 and shall be subject to a $100 per bed 
204.18 	reactivation fee.  In addition, at any time within three years of the effective date of the 
204.19 	layaway, the beds on layaway status may be:
204.20 	(1) relicensed and recertified upon relocation and reactivation of some or all of 
204.21 	the beds to an existing licensed and certified facility or facilities located in Pine River, 
204.22 	Brainerd, or International Falls; provided that the total project construction costs related to 
204.23 	the relocation of beds from layaway status for any facility receiving relocated beds may 
204.24 	not exceed the dollar threshold provided in subdivision 2 unless the construction project 
204.25 	has been approved through the moratorium exception process under section 144A.073;
204.26 	(2) relicensed and recertified, upon reactivation of some or all of the beds within the 
204.27 	facility which placed the beds in layaway status, if the commissioner has determined a 
204.28 	need for the reactivation of the beds on layaway status.
204.29 	The property-related payment rate of a facility placing beds on layaway status 
204.30 	must be adjusted by the incremental change in its rental per diem after recalculating the 
204.31 	rental per diem as provided in section 256B.431, subdivision 3a, paragraph (c).  The 
204.32 	property-related payment rate for a facility relicensing and recertifying beds from layaway 
204.33 	status must be adjusted by the incremental change in its rental per diem after recalculating 
204.34 	its rental per diem using the number of beds after the relicensing to establish the facility's 
204.35 	capacity day divisor, which shall be effective the first day of the month following the 
204.36 	month in which the relicensing and recertification became effective.  Any beds remaining 
205.1 	on layaway status more than three years after the date the layaway status became effective 
205.2 	must be removed from layaway status and immediately delicensed and decertified;
205.3 	(q) to license and certify beds in a renovation and remodeling project to convert 12 
205.4 	four-bed wards into 24 two-bed rooms, expand space, and add improvements in a nursing 
205.5 	home that, as of January 1, 1994, met the following conditions:  the nursing home was 
205.6 	located in Ramsey County; had a licensed capacity of 154 beds; and had been ranked 
205.7 	among the top 15 applicants by the 1993 moratorium exceptions advisory review panel.  
205.8 	The total project construction cost estimate for this project must not exceed the cost 
205.9 	estimate submitted in connection with the 1993 moratorium exception process;
205.10 	(r) to license and certify up to 117 beds that are relocated from a licensed and 
205.11 	certified 138-bed nursing facility located in St. Paul to a hospital with 130 licensed 
205.12 	hospital beds located in South St. Paul, provided that the nursing facility and hospital are 
205.13 	owned by the same or a related organization and that prior to the date the relocation is 
205.14 	completed the hospital ceases operation of its inpatient hospital services at that hospital.  
205.15 	After relocation, the nursing facility's status under section 256B.431, subdivision 2j, shall 
205.16 	be the same as it was prior to relocation.  The nursing facility's property-related payment 
205.17 	rate resulting from the project authorized in this paragraph shall become effective no 
205.18 	earlier than April 1, 1996.  For purposes of calculating the incremental change in the 
205.19 	facility's rental per diem resulting from this project, the allowable appraised value of 
205.20 	the nursing facility portion of the existing health care facility physical plant prior to the 
205.21 	renovation and relocation may not exceed $2,490,000;
205.22 	(s) to license and certify two beds in a facility to replace beds that were voluntarily 
205.23 	delicensed and decertified on June 28, 1991;
205.24 	(t) to allow 16 licensed and certified beds located on July 1, 1994, in a 142-bed 
205.25 	nursing home and 21-bed boarding care home facility in Minneapolis, notwithstanding 
205.26 	the licensure and certification after July 1, 1995, of the Minneapolis facility as a 147-bed 
205.27 	nursing home facility after completion of a construction project approved in 1993 under 
205.28 	section 144A.073, to be laid away upon 30 days' prior written notice to the commissioner.  
205.29 	Beds on layaway status shall have the same status as voluntarily delicensed or decertified 
205.30 	beds except that they shall remain subject to the surcharge in section 256.9657.  The 
205.31 	16 beds on layaway status may be relicensed as nursing home beds and recertified at 
205.32 	any time within five years of the effective date of the layaway upon relocation of some 
205.33 	or all of the beds to a licensed and certified facility located in Watertown, provided that 
205.34 	the total project construction costs related to the relocation of beds from layaway status 
205.35 	for the Watertown facility may not exceed the dollar threshold provided in subdivision 
206.1 	2 unless the construction project has been approved through the moratorium exception 
206.2 	process under section 144A.073.
206.3 	The property-related payment rate of the facility placing beds on layaway status 
206.4 	must be adjusted by the incremental change in its rental per diem after recalculating the 
206.5 	rental per diem as provided in section 256B.431, subdivision 3a, paragraph (c).  The 
206.6 	property-related payment rate for the facility relicensing and recertifying beds from 
206.7 	layaway status must be adjusted by the incremental change in its rental per diem after 
206.8 	recalculating its rental per diem using the number of beds after the relicensing to establish 
206.9 	the facility's capacity day divisor, which shall be effective the first day of the month 
206.10 	following the month in which the relicensing and recertification became effective.  Any 
206.11 	beds remaining on layaway status more than five years after the date the layaway status 
206.12 	became effective must be removed from layaway status and immediately delicensed 
206.13 	and decertified;
206.14 	(u) to license and certify beds that are moved within an existing area of a facility or 
206.15 	to a newly constructed addition which is built for the purpose of eliminating three- and 
206.16 	four-bed rooms and adding space for dining, lounge areas, bathing rooms, and ancillary 
206.17 	service areas in a nursing home that, as of January 1, 1995, was located in Fridley and had 
206.18 	a licensed capacity of 129 beds;
206.19 	(v) to relocate 36 beds in Crow Wing County and four beds from Hennepin County 
206.20 	to a 160-bed facility in Crow Wing County, provided all the affected beds are under 
206.21 	common ownership;
206.22 	(w) to license and certify a total replacement project of up to 49 beds located in 
206.23 	Norman County that are relocated from a nursing home destroyed by flood and whose 
206.24 	residents were relocated to other nursing homes.  The operating cost payment rates for 
206.25 	the new nursing facility shall be determined based on the interim and settle-up payment 
206.26 	provisions of Minnesota Rules, part 9549.0057, and the reimbursement provisions of 
206.27 	section 256B.431, except that subdivision 26, paragraphs (a) and (b), shall not apply until 
206.28 	the second rate year after the settle-up cost report is filed.  Property-related reimbursement 
206.29 	rates shall be determined under section 256B.431, taking into account any federal or state 
206.30 	flood-related loans or grants provided to the facility;
206.31 	(x) to license and certify a total replacement project of up to 129 beds located 
206.32 	in Polk County that are relocated from a nursing home destroyed by flood and whose 
206.33 	residents were relocated to other nursing homes.  The operating cost payment rates for 
206.34 	the new nursing facility shall be determined based on the interim and settle-up payment 
206.35 	provisions of Minnesota Rules, part 9549.0057, and the reimbursement provisions of 
206.36 	section 256B.431, except that subdivision 26, paragraphs (a) and (b), shall not apply until 
207.1 	the second rate year after the settle-up cost report is filed.  Property-related reimbursement 
207.2 	rates shall be determined under section 256B.431, taking into account any federal or state 
207.3 	flood-related loans or grants provided to the facility;
207.4 	(y) to license and certify beds in a renovation and remodeling project to convert 13 
207.5 	three-bed wards into 13 two-bed rooms and 13 single-bed rooms, expand space, and 
207.6 	add improvements in a nursing home that, as of January 1, 1994, met the following 
207.7 	conditions:  the nursing home was located in Ramsey County, was not owned by a hospital 
207.8 	corporation, had a licensed capacity of 64 beds, and had been ranked among the top 15 
207.9 	applicants by the 1993 moratorium exceptions advisory review panel.  The total project 
207.10 	construction cost estimate for this project must not exceed the cost estimate submitted in 
207.11 	connection with the 1993 moratorium exception process;
207.12 	(z) to license and certify up to 150 nursing home beds to replace an existing 285 
207.13 	bed nursing facility located in St. Paul.  The replacement project shall include both the 
207.14 	renovation of existing buildings and the construction of new facilities at the existing 
207.15 	site.  The reduction in the licensed capacity of the existing facility shall occur during the 
207.16 	construction project as beds are taken out of service due to the construction process.  Prior 
207.17 	to the start of the construction process, the facility shall provide written information to the 
207.18 	commissioner of health describing the process for bed reduction, plans for the relocation 
207.19 	of residents, and the estimated construction schedule.  The relocation of residents shall be 
207.20 	in accordance with the provisions of law and rule;
207.21 	(aa) to allow the commissioner of human services to license an additional 36 beds to 
207.22 	provide residential services for the physically handicapped under Minnesota Rules, parts 
207.23 	9570.2000 to 9570.3400, in a 198-bed nursing home located in Red Wing, provided that 
207.24 	the total number of licensed and certified beds at the facility does not increase;
207.25 	(bb) to license and certify a new facility in St. Louis county with 44 beds constructed 
207.26 	to replace an existing facility in St. Louis County with 31 beds, which has resident rooms 
207.27 	on two separate floors and an antiquated elevator that creates safety concerns for residents 
207.28 	and prevents nonambulatory residents from residing on the second floor.  The project shall 
207.29 	include the elimination of three- and four-bed rooms;
207.30 	(cc) to license and certify four beds in a 16-bed certified boarding care home in 
207.31 	Minneapolis to replace beds that were voluntarily delicensed and decertified on or 
207.32 	before March 31, 1992.  The licensure and certification is conditional upon the facility 
207.33 	periodically assessing and adjusting its resident mix and other factors which may 
207.34 	contribute to a potential institution for mental disease declaration.  The commissioner of 
207.35 	human services shall retain the authority to audit the facility at any time and shall require 
208.1 	the facility to comply with any requirements necessary to prevent an institution for mental 
208.2 	disease declaration, including delicensure and decertification of beds, if necessary;
208.3 	(dd) to license and certify 72 beds in an existing facility in Mille Lacs County with 
208.4 	80 beds as part of a renovation project.  The renovation must include construction of 
208.5 	an addition to accommodate ten residents with beginning and midstage dementia in a 
208.6 	self-contained living unit; creation of three resident households where dining, activities, 
208.7 	and support spaces are located near resident living quarters; designation of four beds 
208.8 	for rehabilitation in a self-contained area; designation of 30 private rooms; and other 
208.9 	improvements;
208.10 	(ee) to license and certify beds in a facility that has undergone replacement or 
208.11 	remodeling as part of a planned closure under section 256B.437;
208.12 	(ff) to license and certify a total replacement project of up to 124 beds located 
208.13 	in Wilkin County that are in need of relocation from a nursing home significantly 
208.14 	damaged by flood. The operating cost payment rates for the new nursing facility shall 
208.15 	be determined based on the interim and settle-up payment provisions of Minnesota 
208.16 	Rules, part 9549.0057, and the reimbursement provisions of section 256B.431, except 
208.17 	that section 256B.431, subdivision 26, paragraphs (a) and (b), shall not apply until the 
208.18 	second rate year after the settle-up cost report is filed.  Property-related reimbursement 
208.19 	rates shall be determined under section 256B.431, taking into account any federal or state 
208.20 	flood-related loans or grants provided to the facility;
208.21 	(gg) to allow the commissioner of human services to license an additional nine beds 
208.22 	to provide residential services for the physically handicapped under Minnesota Rules, 
208.23 	parts 9570.2000 to 9570.3400, in a 240-bed nursing home located in Duluth, provided that 
208.24 	the total number of licensed and certified beds at the facility does not increase;
208.25 	(hh) to license and certify up to 120 new nursing facility beds to replace beds in a 
208.26 	facility in Anoka County, which was licensed for 98 beds as of July 1, 2000, provided the 
208.27 	new facility is located within four miles of the existing facility and is in Anoka County.  
208.28 	Operating and property rates shall be determined and allowed under section 256B.431 and 
208.29 	Minnesota Rules, parts 9549.0010 to 9549.0080, or section 256B.434 or 256B.435.  The 
208.30 	provisions of section 256B.431, subdivision 26, paragraphs (a) and (b), do not apply until 
208.31 	the second rate year following settle-up; or 
208.32 	(ii) to transfer up to 98 beds of a 129-licensed bed facility located in Anoka County 
208.33 	that, as of March 25, 2001, is in the active process of closing, to a 122-licensed bed 
208.34 	nonprofit nursing facility located in the city of Columbia Heights or its affiliate.  The 
208.35 	transfer is effective when the receiving facility notifies the commissioner in writing of the 
208.36 	number of beds accepted.  The commissioner shall place all transferred beds on layaway 
209.1 	status held in the name of the receiving facility.  The layaway adjustment provisions of 
209.2 	section 256B.431, subdivision 30, do not apply to this layaway. The receiving facility 
209.3 	may only remove the beds from layaway for recertification and relicensure at the receiving 
209.4 	facility's current site, or at a newly constructed facility located in Anoka County.  The 
209.5 	receiving facility must receive statutory authorization before removing these beds from 
209.6 	layaway status, or may remove these beds from layaway status if removal from layaway 
209.7 	status is part of a moratorium exception project approved by the commissioner under 
209.8 	section 144A.073.

209.9 	Sec. 5. Minnesota Statutes 2004, section 144A.071, subdivision 4c, is amended to read:
209.10 		Subd. 4c.Exceptions for replacement beds after June 30, 2003. (a) The 
209.11 	commissioner of health, in coordination with the commissioner of human services, may 
209.12 	approve the renovation, replacement, upgrading, or relocation of a nursing home or 
209.13 	boarding care home, under the following conditions:
209.14 	(1) to license and certify an 80-bed city-owned facility in Nicollet County to be 
209.15 	constructed on the site of a new city-owned hospital to replace an existing 85-bed facility 
209.16 	attached to a hospital that is also being replaced. The threshold allowed for this project 
209.17 	under section  144A.073 shall be the maximum amount available to pay the additional 
209.18 	medical assistance costs of the new facility; 
209.19 	(2) to license and certify 29 beds to be added to an existing 69-bed facility in St. 
209.20 	Louis County, provided that the 29 beds must be transferred from active or layaway status 
209.21 	at an existing facility in St. Louis County that had 235 beds on April 1, 2003.
209.22 	The licensed capacity at the 235-bed facility must be reduced to 206 beds, but the payment 
209.23 	rate at that facility shall not be adjusted as a result of this transfer. The operating payment 
209.24 	rate of the facility adding beds after completion of this project shall be the same as it was 
209.25 	on the day prior to the day the beds are licensed and certified. This project shall not 
209.26 	proceed unless it is approved and financed under the provisions of section  144A.073; and
209.27 	(3) to license and certify a new 60-bed facility in Austin, provided that: (i) 45 of 
209.28 	the new beds are transferred from a 45-bed facility in Austin under common ownership 
209.29 	that is closed and 15 of the new beds are transferred from a 182-bed facility in Albert Lea 
209.30 	under common ownership; (ii) the commissioner of human services is authorized by the 
209.31 	2004 legislature to negotiate budget-neutral planned nursing facility closures; and (iii) 
209.32 	money is available from planned closures of facilities under common ownership to make 
209.33 	implementation of this clause budget-neutral to the state. The bed capacity of the Albert 
209.34 	Lea facility shall be reduced to 167 beds following the transfer. Of the 60 beds at the 
210.1 	new facility, 20 beds shall be used for a special care unit for persons with Alzheimer's 
210.2 	disease or related dementias.; and
210.3 	(4) to license and certify up to 80 beds transferred from an existing state-owned 
210.4 	nursing facility in Cass County to a new facility located on the grounds of the 
210.5 	Ah-Gwah-Ching campus. The operating cost payment rates for the new facility shall be 
210.6 	determined based on the interim and settle-up payment provisions of Minnesota Rules, 
210.7 	part 9549.0057, and the reimbursement provisions of section 256B.431. The property 
210.8 	payment rate for the first three years of operation shall be $35 per day. For subsequent 
210.9 	years, the property payment rate of $35 per day shall be adjusted for inflation as provided 
210.10 	in section 256B.434, subdivision 4, paragraph (c), as long as the facility has a contract 
210.11 	under section 256B.434.
210.12 	(b) Projects approved under this subdivision shall be treated in a manner equivalent 
210.13 	to projects approved under subdivision 4a.

210.14 	Sec. 6. Minnesota Statutes 2004, section 144A.10, is amended by adding a subdivision 
210.15 	to read:
210.16 		Subd. 6e.Use of fines. When the commissioner of health determines the use of, 
210.17 	or provides recommendations on the use of fines collected under subdivisions 6 or 6b, 
210.18 	two representatives of the nursing home industry, appointed by nursing home trade 
210.19 	associations, and two consumer representatives as appointed by the commissioner must 
210.20 	be included in the process of developing or preparing any information, reviews, or 
210.21 	recommendations on the use of the fines. This includes, but is not limited to, including 
210.22 	two representatives of the nursing home industry in any committee designed to provide 
210.23 	information and recommendations for the use of the fines.

210.24 	Sec. 7. Minnesota Statutes 2004, section 144A.161, subdivision 1, is amended to read:
210.25 		Subdivision 1.Definitions. The definitions in this subdivision apply to subdivisions 
210.26 	2 to 10.
210.27 	(a) "Closure" means the cessation of operations of a facility and the delicensure and 
210.28 	decertification of all beds within the facility.
210.29 	(b) "Curtailment," "reduction," or "change" refers to any change in operations which 
210.30 	would result in or encourage the relocation of residents.
210.31 	(c) "Facility" means a nursing home licensed pursuant to this chapter, or a certified 
210.32 	boarding care home licensed pursuant to sections  144.50 to  144.56. 
210.33 	(d) "Licensee" means the owner of the facility or the owner's designee or the 
210.34 	commissioner of health for a facility in receivership.
211.1 	(e) "Local agency" "County social services agency" means the county or multicounty 
211.2 	social service agency authorized under sections  393.01 and  393.07, as the agency 
211.3 	responsible for providing social services for the county in which the nursing home is 
211.4 	located. 
211.5 	(f) "Plan" means a process developed under subdivision 3, paragraph (b), for the 
211.6 	closure, curtailment, reduction, or change in operations in a facility and the subsequent 
211.7 	relocation of residents.
211.8 	(g) "Relocation" means the discharge of a resident and movement of the resident to 
211.9 	another facility or living arrangement as a result of the closing, curtailment, reduction, or 
211.10 	change in operations of a nursing home or boarding care home.

211.11 	Sec. 8. Minnesota Statutes 2004, section 144A.161, is amended by adding a 
211.12 	subdivision to read:
211.13 		Subd. 1a.Scope. Where a facility is undertaking closure, curtailment, reduction, or 
211.14 	change in operations, the facility and the county social services agency must comply with 
211.15 	the requirements of this section.

211.16 	Sec. 9. Minnesota Statutes 2004, section 144A.161, subdivision 2, is amended to read:
211.17 		Subd. 2.Initial notice from licensee. (a) A licensee shall notify the following 
211.18 	parties in writing when there is an intent to close or curtail, reduce, or change operations 
211.19 	which would result in or encourage the relocation of residents:
211.20 	(1) the commissioner of health;
211.21 	(2) the commissioner of human services;
211.22 	(3) the local county social services agency;
211.23 	(4) the Office of the Ombudsman for Older Minnesotans; and
211.24 	(5) the Office of the Ombudsman for Mental Health and Mental Retardation.
211.25 	(b) The written notice shall include the names, telephone numbers, facsimile 
211.26 	numbers, and e-mail addresses of the persons in the facility responsible for coordinating 
211.27 	the licensee's efforts in the planning process, and the number of residents potentially 
211.28 	affected by the closure or curtailment, reduction, or change in operations.
211.29 	(c) After providing written notice under this section, and prior to admission, the 
211.30 	facility must fully inform prospective residents and their families of the intent to close or 
211.31 	curtail, reduce, or change operations, and of the relocation plan.

211.32 	Sec. 10. Minnesota Statutes 2004, section 144A.161, subdivision 3, is amended to read:
212.1 		Subd. 3.Planning process. (a) The local county social services agency shall, 
212.2 	within five working days of receiving initial notice of the licensee's intent to close or 
212.3 	curtail, reduce, or change operations, provide the licensee and all parties identified in 
212.4 	subdivision 2, paragraph (a), with the names, telephone numbers, facsimile numbers, and 
212.5 	e-mail addresses of those persons responsible for coordinating local county social services
212.6 	agency efforts in the planning process.
212.7 	(b) Within ten working days of receipt of the notice under paragraph (a), the local
212.8 	county social services agency and licensee shall meet to develop the relocation plan. 
212.9 	The local county social services agency shall inform the Departments of Health and 
212.10 	Human Services, the Office of the Ombudsman for Older Minnesotans, and the Office 
212.11 	of the Ombudsman for Mental Health and Mental Retardation of the date, time, and 
212.12 	location of the meeting so that their representatives may attend. The relocation plan 
212.13 	must be completed within 45 days of receipt of the initial notice. However, the plan may 
212.14 	be finalized on an earlier schedule agreed to by all parties. To the extent practicable, 
212.15 	consistent with requirements to protect the safety and health of residents, the commissioner 
212.16 	may authorize the planning process under this subdivision to occur concurrent with the 
212.17 	60-day notice required under subdivision 5a. The plan shall:
212.18 	(1) identify the expected date of closure, curtailment, reduction, or change in 
212.19 	operations;
212.20 	(2) outline the process for public notification of the closure, curtailment, reduction, 
212.21 	or change in operations;
212.22 	(3) identify efforts that will be made to include other stakeholders in the relocation 
212.23 	process;
212.24 	(4) outline the process to ensure 60-day advance written notice to residents, family 
212.25 	members, and designated representatives;
212.26 	(5) present an aggregate description of the resident population remaining to be 
212.27 	relocated and the population's needs;
212.28 	(6) outline the individual resident assessment process to be utilized;
212.29 	(7) identify an inventory of available relocation options, including home and 
212.30 	community-based services;
212.31 	(8) identify a timeline for submission of the list identified in subdivision 5c, 
212.32 	paragraph (b); and
212.33 	(9) identify a schedule for the timely completion of each element of the plan; and
212.34 	(10) identify the steps the licensee and the county social services agency will take to 
212.35 	address the relocation needs of individual residents who may be difficult to place due to 
212.36 	specialized care needs such as behavioral health problems.
213.1 	(c) All parties to the plan shall refrain from any public notification of the intent to 
213.2 	close or curtail, reduce, or change operations until a relocation plan has been established. 
213.3 	If the planning process occurs concurrently with the 60-day notice period, this requirement 
213.4 	does not apply once 60-day notice is given.

213.5 	Sec. 11. Minnesota Statutes 2004, section 144A.161, subdivision 4, is amended to read:
213.6 		Subd. 4.Responsibilities of licensee for resident relocations. The licensee shall 
213.7 	provide for the safe, orderly, and appropriate relocation of residents. The licensee and 
213.8 	facility staff shall cooperate with representatives from the local county social services
213.9 	agency, the Department of Health, the Department of Human Services, the Office of 
213.10 	Ombudsman for Older Minnesotans, and ombudsman for mental health and mental 
213.11 	retardation in planning for and implementing the relocation of residents.

213.12 	Sec. 12. Minnesota Statutes 2004, section 144A.161, subdivision 5, is amended to read:
213.13 		Subd. 5.Licensee responsibilities prior to relocation. (a) The licensee shall 
213.14 	establish an interdisciplinary team responsible for coordinating and implementing the 
213.15 	plan. The interdisciplinary team shall include representatives from the local county social 
213.16 	services agency, the Office of Ombudsman for Older Minnesotans, facility staff that 
213.17 	provide direct care services to the residents, and facility administration.
213.18 	(b) The licensee shall provide a list summary document to the local county social 
213.19 	services agency that includes the following information on each resident to be relocated:
213.20 	(1) name;
213.21 	(2) date of birth;
213.22 	(3) Social Security number;
213.23 	(4) payment source and medical assistance identification number, if applicable;
213.24 	(5) county of financial responsibility;
213.25 	(6) date of admission to the facility;
213.26 	(5) (7) all diagnoses; and
213.27 	(8) the name of and contact information for the resident's physician;
213.28 	(6) (9) the name and contact information for the resident's family or other designated 
213.29 	representative;
213.30 	(10) the names of and contact information for any case managers, if known; and
213.31 	(11) information on the resident's status related to commitment and probation.
213.32 	(c) The licensee shall consult with the local county social services agency on the 
213.33 	availability and development of available resources and on the resident relocation process.

214.1 	Sec. 13. Minnesota Statutes 2004, section 144A.161, subdivision 5a, is amended to 
214.2 	read:
214.3 		Subd. 5a.Licensee responsibilities to provide notice. At least 60 days before the 
214.4 	proposed date of closing, curtailment, reduction, or change in operations as agreed to in 
214.5 	the plan, the licensee shall send a written notice of closure or curtailment, reduction, or 
214.6 	change in operations to each resident being relocated, the resident's family member or 
214.7 	designated representative, and the resident's attending physician. The notice must include 
214.8 	the following:
214.9 	(1) the date of the proposed closure, curtailment, reduction, or change in operations;
214.10 	(2) the name, address, telephone number, facsimile number, and e-mail address 
214.11 	of the individual or individuals in the facility responsible for providing assistance and 
214.12 	information;
214.13 	(3) notification of upcoming meetings for residents, families and designated 
214.14 	representatives, and resident and family councils to discuss the relocation of residents;
214.15 	(4) the name, address, and telephone number of the local county social services
214.16 	agency contact person; and
214.17 	(5) the name, address, and telephone number of the Office of Ombudsman for Older 
214.18 	Minnesotans and the ombudsman for mental health and mental retardation.
214.19 	The notice must comply with all applicable state and federal requirements for notice 
214.20 	of transfer or discharge of nursing home residents.

214.21 	Sec. 14. Minnesota Statutes 2004, section 144A.161, subdivision 5c, is amended to 
214.22 	read:
214.23 		Subd. 5c.Licensee responsibility regarding placement information. (a) The 
214.24 	licensee shall provide sufficient preparation to residents to ensure safe, orderly, and 
214.25 	appropriate discharge and relocation. The licensee shall assist residents in finding 
214.26 	placements that respond to personal preferences, such as desired geographic location.
214.27 	(b) The licensee shall prepare a resource list with several relocation options for each 
214.28 	resident. The list must contain the following information for each relocation option, 
214.29 	when applicable:
214.30 	(1) the name, address, and telephone and facsimile numbers of each facility with 
214.31 	appropriate, available beds or services;
214.32 	(2) the certification level of the available beds;
214.33 	(3) the types of services available; and
215.1 	(4) the name, address, and telephone and facsimile numbers of appropriate available 
215.2 	home and community-based placements, services, and settings or other options for 
215.3 	individuals with special needs.
215.4 	The list shall be made available to residents and their families or designated 
215.5 	representatives, and upon request to the Office of Ombudsman for Older Minnesotans, 
215.6 	the ombudsman for mental health and Mental Retardation, and the local county social 
215.7 	services agency.
215.8 	(c) The Senior LinkAge line may make available via a Web site the name, address, 
215.9 	and telephone and facsimile numbers of each facility with available beds, the certification 
215.10 	level of the available beds, the types of services available, and the number of beds that are 
215.11 	available as updated daily by the listed facilities. The licensee must provide residents, 
215.12 	their families or designated representatives, the Office of the Ombudsman for Older 
215.13 	Minnesotans, the Office of the Ombudsman for Mental Health and Mental Retardation, 
215.14 	and the local county social services agency with the toll-free number and Web site address 
215.15 	for the Senior LinkAge line.

215.16 	Sec. 15. Minnesota Statutes 2004, section 144A.161, subdivision 6, is amended to read:
215.17 		Subd. 6.Responsibilities of the licensee during relocation. (a) The licensee 
215.18 	shall make arrangements or provide for the transportation of residents to the new facility 
215.19 	or placement within a 50-mile radius, or within a larger radius if no suitable options 
215.20 	are available within 50 miles. The licensee shall provide a staff person to accompany 
215.21 	the resident during transportation, upon request of the resident, the resident's family, or 
215.22 	designated representative. The discharge and relocation of residents must comply with all 
215.23 	applicable state and federal requirements and must be conducted in a safe, orderly, and 
215.24 	appropriate manner. The licensee must ensure that there is no disruption in providing 
215.25 	meals, medications, or treatments of a resident during the relocation process.
215.26 	(b) Beginning the week following development of the initial relocation plan, the 
215.27 	licensee shall submit biweekly weekly status reports to the commissioners of health and 
215.28 	human services or their designees and to the local county social services agency. The 
215.29 	initial status report must identify:
215.30 	(1) the relocation plan developed;
215.31 	(2) the interdisciplinary team members; and
215.32 	(3) the number of residents to be relocated.
215.33 	(c) Subsequent status reports must identify:
215.34 	(1) any modifications to the plan;
215.35 	(2) any change of interdisciplinary team members;
216.1 	(3) the number of residents relocated;
216.2 	(4) the destination to which residents have been relocated;
216.3 	(5) the number of residents remaining to be relocated; and
216.4 	(6) issues or problems encountered during the process and resolution of these issues.

216.5 	Sec. 16. Minnesota Statutes 2004, section 144A.161, subdivision 8, is amended to read:
216.6 		Subd. 8.Responsibilities of local county social services agency. (a) The local
216.7 	county social services agency shall participate in the meeting as outlined in subdivision 3, 
216.8 	paragraph (b), to develop a relocation plan.
216.9 	(b) The localcounty social services agency shall designate a representative to 
216.10 	the interdisciplinary team established by the licensee responsible for coordinating the 
216.11 	relocation efforts.
216.12 	(c) The localcounty social services agency shall serve as a resource in the relocation 
216.13 	process.
216.14 	(d) Concurrent with the notice sent to residents from the licensee as provided in 
216.15 	subdivision 5a, the localcounty social services agency shall provide written notice to 
216.16 	residents, family, or designated representatives describing:
216.17 	(1) the county's role in the relocation process and in the follow-up to relocations;
216.18 	(2) a localcounty social services agency contact name, address, and telephone 
216.19 	number; and
216.20 	(3) the name, address, and telephone number of the Office of Ombudsman for Older 
216.21 	Minnesotans and the ombudsman for mental health and mental retardation.
216.22 	(e) The localcounty social services agency designee shall meet with appropriate 
216.23 	facility staff to coordinate any assistance in the relocation process. This coordination 
216.24 	shall include participating in group meetings with residents, families, and designated 
216.25 	representatives to explain the relocation process.
216.26 	(f) The localcounty social services agency shall monitor compliance with all 
216.27 	components of the plan. If the licensee is not in compliance, the localcounty social 
216.28 	services agency shall notify the commissioners of the Departments of Health and Human 
216.29 	Services.
216.30 	(g) Except as requested by the resident, family member, or designated representative 
216.31 	and within the parameters of the Vulnerable Adults Act, the localcounty social services 
216.32 	agency may halt a relocation that it deems inappropriate or dangerous to the health or 
216.33 	safety of a resident. The localcounty social services agency shall pursue remedies to 
216.34 	protect the resident during the relocation process, including, but not limited to, assisting 
216.35 	the resident with filing an appeal of transfer or discharge, notification of all appropriate 
217.1 	licensing boards and agencies, and other remedies available to the county under section  
217.2 	626.557, subdivision 10. 
217.3 	(h) A member of the localcounty social services agency staff shall visit residents 
217.4 	relocated within 100 miles of the county within 30 days after the relocation. LocalThis 
217.5 	requirement does not apply to changes in operation where the facility moved to a new 
217.6 	location and residents chose to move to that new location. The requirement also does not 
217.7 	apply to residents admitted after the notice of closure and discharged prior to the actual 
217.8 	closure. County social services agency staff shall interview the resident and family or 
217.9 	designated representative, observe the resident on site, and review and discuss pertinent 
217.10 	medical or social records with appropriate facility staff to:
217.11 	(1) assess the adjustment of the resident to the new placement;
217.12 	(2) recommend services or methods to meet any special needs of the resident; and
217.13 	(3) identify residents at risk.
217.14 	(i) The local county social services agency may conduct subsequent follow-up visits 
217.15 	in cases where the adjustment of the resident to the new placement is in question.
217.16 	(j) Within 60 days of the completion of the follow-up visits, the local county social 
217.17 	services agency shall submit a written summary of the follow-up work to the Departments 
217.18 	of Health and Human Services in a manner approved by the commissioners.
217.19 	(k) The local county social services agency shall submit to the Departments of Health 
217.20 	and Human Services a report of any issues that may require further review or monitoring.
217.21 	(l) The local county social services agency shall be responsible for the safe and 
217.22 	orderly relocation of residents in cases where an emergent need arises or when the licensee 
217.23 	has abrogated its responsibilities under the plan.

217.24 	Sec. 17. Minnesota Statutes 2005 Supplement, section 256B.0918, subdivision 1, 
217.25 	is amended to read:
217.26 		Subdivision 1.Program criteria. Beginning on or after October 1, 2005, within 
217.27 	the limits of appropriations specifically available for this purpose, the commissioner shall 
217.28 	provide funding to qualified provider applicants for employee scholarships for education 
217.29 	in nursing and other health care fields. Employee scholarships must be for a course of 
217.30 	study that is expected to lead to career advancement with the provider or in the field 
217.31 	of long-term care, including home care or care of persons with disabilities, or nursing. 
217.32 	Providers that secure this funding must use it to award scholarships to employees who 
217.33 	work an average of at least 20 hours per week for the provider. Executive management 
217.34 	staff without direct care duties, registered nurses, and therapists are not eligible to receive 
217.35 	scholarships under this section.

218.1 	Sec. 18. Minnesota Statutes 2005 Supplement, section 256B.0918, subdivision 3, 
218.2 	is amended to read:
218.3 		Subd. 3.Provider selection criteria. To be considered for scholarship funding, 
218.4 	the provider shall submit a completed application within the time frame specified by the 
218.5 	commissioner. In awarding funding, the commissioner shall consider the following:
218.6 	(1) the size of the provider as measured in annual billing to the medical assistance 
218.7 	program. To be eligible, a provider must receive at least $500,000$300,000 annually 
218.8 	in medical assistance payments;
218.9 	(2) the percentage of employees meeting the scholarship program recipient 
218.10 	requirements;
218.11 	(3) staff retention rates for paraprofessionals; and
218.12 	(4) other criteria determined by the commissioner.

218.13 	Sec. 19. Minnesota Statutes 2005 Supplement, section 256B.0918, subdivision 4, 
218.14 	is amended to read:
218.15 		Subd. 4.Funding specifics. Within the limits of appropriations specifically 
218.16 	available for this purpose, for the rate period beginning on or after October 1, 2005, to 
218.17 	September 30, 2007, the commissioner shall provide to each provider listed in subdivision 
218.18 	2 and awarded funds under subdivision 3 a medical assistance rate increase to fund 
218.19 	scholarships up to two-tenthsthree-tenths percent of the medical assistance reimbursement 
218.20 	rate. The commissioner shall require providers to repay any portion of funds awarded 
218.21 	under subdivision 3 that is not used to fund scholarships. If applications exceed available 
218.22 	funding, funding shall be targeted to providers that employ a higher percentage of 
218.23 	paraprofessional staff or have lower rates of turnover of paraprofessional staff. During 
218.24 	the subsequent years of the program, the rate adjustment may be recalculated, at the 
218.25 	discretion of the commissioner. In making a recalculation the commissioner may consider 
218.26 	the provider's success at granting scholarships based on the amount spent during the 
218.27 	previous year and the availability of appropriations to continue the program.

218.28 	Sec. 20. Minnesota Statutes 2004, section 256B.431, is amended by adding a 
218.29 	subdivision to read:
218.30 		Subd. 43.Rate increase for facilities in Stearns, Sherburne, and Benton 
218.31 	Counties. Effective July 1, 2006, operating payment rates of nursing facilities in Stearns, 
218.32 	Sherburne, and Benton Counties that are reimbursed under this section, section 256B.434, 
218.33 	or section 256B.441 shall be increased to be equal, for a RUG's rate with a weight of 1.00, 
218.34 	to the geographic group III median rate for the same RUG's weight. The percentage of 
219.1 	the operating payment rate for each facility to be case-mix adjusted shall be equal to the 
219.2 	percentage that is case-mix adjusted in that facility's June 30, 2006, operating payment 
219.3 	rate. This subdivision shall apply only if it results in a rate increase. Increases provided 
219.4 	by this subdivision shall be added to the rate determined under any new reimbursement 
219.5 	system established under section 256B.440.

219.6 	Sec. 21. Minnesota Statutes 2005 Supplement, section 256B.434, subdivision 4, 
219.7 	is amended to read:
219.8 		Subd. 4.Alternate rates for nursing facilities. (a) For nursing facilities which 
219.9 	have their payment rates determined under this section rather than section 256B.431, the 
219.10 	commissioner shall establish a rate under this subdivision. The nursing facility must enter 
219.11 	into a written contract with the commissioner.
219.12 	(b) A nursing facility's case mix payment rate for the first rate year of a facility's 
219.13 	contract under this section is the payment rate the facility would have received under 
219.14 	section 256B.431.
219.15 	(c) A nursing facility's case mix payment rates for the second and subsequent years 
219.16 	of a facility's contract under this section are the previous rate year's contract payment 
219.17 	rates plus an inflation adjustment and, for facilities reimbursed under this section or 
219.18 	section 256B.431, an adjustment to include the cost of any increase in Health Department 
219.19 	licensing fees for the facility taking effect on or after July 1, 2001. The index for the 
219.20 	inflation adjustment must be based on the change in the Consumer Price Index-All Items 
219.21 	(United States City average) (CPI-U) forecasted by the commissioner of finance's national 
219.22 	economic consultant, as forecasted in the fourth quarter of the calendar year preceding 
219.23 	the rate year. The inflation adjustment must be based on the 12-month period from the 
219.24 	midpoint of the previous rate year to the midpoint of the rate year for which the rate is 
219.25 	being determined. For the rate years beginning on July 1, 1999, July 1, 2000, July 1, 2001, 
219.26 	July 1, 2002, July 1, 2003, July 1, 2004, July 1, 2005, July 1, 2006, July 1, 2007, and July 
219.27 	1, 2008, this paragraph shall apply only to the property-related payment rate, except 
219.28 	that adjustments to include the cost of any increase in Health Department licensing fees 
219.29 	taking effect on or after July 1, 2001, shall be provided. Beginning in 2005, adjustment to 
219.30 	the property payment rate under this section and section 256B.431 shall be effective on 
219.31 	October 1. In determining the amount of the property-related payment rate adjustment 
219.32 	under this paragraph, the commissioner shall determine the proportion of the facility's 
219.33 	rates that are property-related based on the facility's most recent cost report. Beginning 
219.34 	October 1, 2006, facilities reimbursed under this section shall be allowed to receive a 
219.35 	property rate adjustment for building projects under section 144A.071, subdivision 2.
220.1 	(d) The commissioner shall develop additional incentive-based payments of up to 
220.2 	five percent above a facility's operating payment rate for achieving outcomes specified 
220.3 	in a contract. The commissioner may solicit contract amendments and implement those 
220.4 	which, on a competitive basis, best meet the state's policy objectives. The commissioner 
220.5 	shall limit the amount of any incentive payment and the number of contract amendments 
220.6 	under this paragraph to operate the incentive payments within funds appropriated for this 
220.7 	purpose. The contract amendments may specify various levels of payment for various 
220.8 	levels of performance. Incentive payments to facilities under this paragraph may be in the 
220.9 	form of time-limited rate adjustments or onetime supplemental payments. In establishing 
220.10 	the specified outcomes and related criteria, the commissioner shall consider the following 
220.11 	state policy objectives:
220.12 	(1) successful diversion or discharge of residents to the residents' prior home or 
220.13 	other community-based alternatives;
220.14 	(2) adoption of new technology to improve quality or efficiency; 
220.15 	(3) improved quality as measured in the Nursing Home Report Card; 
220.16 	(4) reduced acute care costs; and
220.17 	(5) any additional outcomes proposed by a nursing facility that the commissioner 
220.18 	finds desirable.

220.19 	Sec. 22. Minnesota Statutes 2004, section 256B.434, is amended by adding a 
220.20 	subdivision to read:
220.21 		Subd. 4f.Construction project rate adjustments effective October 1, 2006. (a) 
220.22 	Effective October 1, 2006, facilities reimbursed under this section may receive a property 
220.23 	rate adjustment for construction projects exceeding the threshold in section 256B.431, 
220.24 	subdivision 16, and below the threshold in section 144A.071, subdivision 2, clause (a). 
220.25 	For these projects, capital assets purchased shall be counted as construction project costs 
220.26 	for a rate adjustment request made by a facility if they are: (1) purchased within 24 
220.27 	months of the completion of the construction project; (2) purchased after the completion 
220.28 	date of any prior construction project; and (3) are not purchased prior to July 14, 2005. 
220.29 	Except as otherwise provided in this subdivision, the definitions, rate calculation methods, 
220.30 	and principles in sections 144A.071 and 256B.431 and Minnesota Rules, parts 9549.0010 
220.31 	to 9549.0080, shall be used to calculate rate adjustments for allowable construction 
220.32 	projects under this subdivision and section 144A.073. Facilities completing construction 
220.33 	projects between October 1, 2005, and October 1, 2006, are eligible to have a property 
220.34 	rate adjustment effective October 1, 2006. Facilities completing projects after October 1, 
221.1 	2006, are eligible for a property rate adjustment effective on the first day of the month 
221.2 	following the completion date.
221.3 	(b) Notwithstanding subdivision 18, as of July 14, 2005, facilities with rates set 
221.4 	under section 256B.431 and Minnesota Rules, parts 9549.0010 to 9549.0080, that 
221.5 	commenced a construction project on or after October 1, 2004, and do not have a contract 
221.6 	under subdivision 3 by September 30, 2006, are eligible to request a rate adjustment under 
221.7 	section 256B.431, subdivision 10, through September 30, 2006. If the request results 
221.8 	in the commissioner determining a rate adjustment is allowable, the rate adjustment is 
221.9 	effective on the first of the month following project completion. These facilities shall 
221.10 	be allowed to accumulate construction project costs for the period October 1, 2004, to 
221.11 	September 30, 2006.
221.12 	(c) Facilities shall be allowed construction project rate adjustments no sooner than 
221.13 	12 months after completing a previous construction project. Facilities must request the 
221.14 	rate adjustment according to section 256B.431, subdivision 10.
221.15 	(d) Capacity days shall be computed according to Minnesota Rules, part 9549.0060, 
221.16 	subpart 11. For rate calculations under this section, the number of licensed beds in the 
221.17 	nursing facility shall be the number existing after the construction project is completed 
221.18 	and the number of days in the nursing facility's reporting period shall be 365.
221.19 	(e) The value of assets to be recognized for a total replacement project as defined 
221.20 	in section 256B.431, subdivision 17d, shall be computed as described in clause (1). The 
221.21 	value of assets to be recognized for all other projects shall be computed as described 
221.22 	in clause (2):
221.23 	(1) Replacement-cost-new limits under section 256B.431, subdivision 17e, and the 
221.24 	number of beds allowed under subdivision 3a, paragraph (c), shall be used to compute the 
221.25 	maximum amount of assets allowable in a facility's property rate calculation. If a facility's 
221.26 	current request for a rate adjustment results from the completion of a construction 
221.27 	project that was previously approved under section 144A.073, the assets to be used in 
221.28 	the rate calculation cannot exceed the lesser of the amount determined under sections 
221.29 	144A.071, subdivision 2, and 144A.073, subdivision 3b, or the actual allowable costs of 
221.30 	the construction project. A current request that is not the result of a project under section 
221.31 	144A.073 cannot exceed the limit under section 144A.071, subdivision 2, paragraph (a). 
221.32 	Applicable credits must be deducted from the cost of the construction project.
221.33 	(2) (i) Replacement-cost-new limits under section 256B.431, subdivision 17e, and 
221.34 	the number of beds allowed under section 256B.431, subdivision 3a, paragraph (c), shall 
221.35 	be used to compute the maximum amount of assets allowable in a facility's property 
221.36 	rate calculation.
222.1 	(ii) The value of a facility's assets to be compared to the amount in item (i) begins 
222.2 	with the total appraised value from the last rate notice a facility received when its rates 
222.3 	were set under section 256B.431 and Minnesota Rules, parts 9549.0010 to 9549.0080. 
222.4 	This value shall be indexed by the factor in section 256B.431, subdivision 3f, paragraph 
222.5 	(a), for each rate year the facility received an inflation factor on its property-related rate 
222.6 	when its rates were set under this section. The value of assets listed as previous capital 
222.7 	additions, capital additions, and special projects on the facility's base year rate notice 
222.8 	and the value of assets related to a construction project for which the facility received a 
222.9 	rate adjustment when its rates were determined under this section shall be added to the 
222.10 	indexed appraised value.
222.11 	(iii) The maximum amount of assets to be recognized in computing a facility's rate 
222.12 	adjustment after a project is completed is the lesser of the aggregate replacement-cost-new 
222.13 	limit computed in (i) minus the assets recognized in (ii) or the actual allowable costs of 
222.14 	the construction project.
222.15 	(iv) If a facility's current request for a rate adjustment results from the completion of 
222.16 	a construction project that was previously approved under section 144A.073, the assets to 
222.17 	be added to the rate calculation cannot exceed the lesser of the amount determined under 
222.18 	sections 144A.071, subdivision 2, and 144A.073, subdivision 3b, or the actual allowable 
222.19 	costs of the construction project. A current request that is not the result of a project under 
222.20 	section 144A.073 cannot exceed the limit stated in section 144A.071, subdivision 2, 
222.21 	paragraph (a). Assets disposed of as a result of a construction project and applicable 
222.22 	credits must be deducted from the cost of the construction project.
222.23 	(f) For construction projects approved under section 144A.073, allowable debt 
222.24 	may never exceed the lesser of the cost of the assets purchased, the threshold limit in 
222.25 	section 144A.071, subdivision 2, or the replacement-cost-new limit less previously 
222.26 	existing capital debt.
222.27 	(g) For construction projects that were not approved under section 144A.073, 
222.28 	allowable debt is limited to the lesser of the threshold in section 144A.071, subdivision 2, 
222.29 	for such construction projects or the applicable limit in paragraph (e), clause (1) or (2), 
222.30 	less previously existing capital debt. Amounts of debt taken out that exceed the costs of a 
222.31 	construction project shall not be allowed regardless of the use of the funds.
222.32 	For all construction projects being recognized, interest expense and average debt 
222.33 	shall be computed based on the first 12 months following project completion. "Previously 
222.34 	existing capital debt" means capital debt recognized on the last rate determined under 
222.35 	section 256B.431 and Minnesota Rules, parts 9549.0010 to 9549.0080, and the amount of 
223.1 	debt recognized for a construction project for which the facility received a rate adjustment 
223.2 	when its rates were determined under this section.
223.3 	For a total replacement project as defined in section 256B.431, subdivision 17d, the 
223.4 	value of previously existing capital debt shall be zero.
223.5 	(h) In addition to the interest expense allowed from the application of paragraph (f), 
223.6 	the amounts allowed under section 256B.431, subdivision 17a, paragraph (a), clauses (2) 
223.7 	and (3), will be added to interest expense.
223.8 	(i) The equity portion of the construction project shall be computed as the allowable 
223.9 	assets in paragraph (e), less the average debt in paragraph (f). The equity portion must 
223.10 	be multiplied by 5.66 percent and the allowable interest expense in paragraph (f) must 
223.11 	be added. This sum must be divided by 95 percent of capacity days to compute the 
223.12 	construction project rate adjustment.
223.13 	(j) For projects that are not a total replacement of a nursing facility, the amount in 
223.14 	paragraph (i) is adjusted for nonreimbursable areas and then added to the current property 
223.15 	payment rate of the facility.
223.16 	(k) For projects that are a total replacement of a nursing facility, the amount 
223.17 	in paragraph (i) becomes the new property payment rate after being adjusted for 
223.18 	nonreimbursable areas. Any amounts existing in a facility's rate before the effective date 
223.19 	of the construction project for equity incentives under section 256B.431, subdivision 16; 
223.20 	capital repairs and replacements under section 256B.431, subdivision 15; or refinancing 
223.21 	incentives under section 256B.431, subdivision 19, shall be removed from the facility's 
223.22 	rates.
223.23 	(l) No additional equipment allowance is allowed under Minnesota Rules, part 
223.24 	9549.0060, subpart 10, as the result of construction projects under this section. Allowable 
223.25 	equipment shall be included in the construction project costs.
223.26 	(m) Capital assets purchased after the completion date of a construction project shall 
223.27 	be counted as construction project costs for any future rate adjustment request made by a 
223.28 	facility under section 144A.071, subdivision 2, clause (a), if they are purchased within 24 
223.29 	months of the completion of the future construction project.
223.30 	(n) In subsequent rate years, the property payment rate for a facility that results from 
223.31 	the application of this subdivision shall be the amount inflated in subdivision 4.
223.32 	(o) Construction projects are eligible for an equity incentive under section 256B.431, 
223.33 	subdivision 16. When computing the equity incentive for a construction project under this 
223.34 	subdivision, only the allowable costs and allowable debt related to the construction project 
223.35 	shall be used. The equity incentive shall not be a part of the property payment rate and not 
223.36 	inflated under subdivision 4. Effective October 1, 2006, all equity incentives for nursing 
224.1 	facilities reimbursed under this section shall be allowed for a duration determined under 
224.2 	section 256B.431, subdivision 16, paragraph (c).

224.3 	Sec. 23. Minnesota Statutes 2004, section 256B.434, is amended by adding a 
224.4 	subdivision to read:
224.5 		Subd. 4g.Facility rate increase effective October 1, 2007; Otter Tail County.
 224.6 	For the rate year beginning October 1, 2007, a nursing facility in Otter Tail County 
224.7 	that was licensed for 57 beds as of December 31, 2004, shall receive a rate increase to 
224.8 	increase its operating rate to the 60th percentile of the operating rates of all other Otter 
224.9 	Tail County nursing facilities. The commissioner shall determine the 60th percentile of 
224.10 	the case mix portion of the operating rates with a RUGS weight of 1.0 of all other Otter 
224.11 	Tail County  nursing facilities and then apply the case mix weights.  The 60th percentile of 
224.12 	the other  operating per diem for all other Otter Tail County nursing facilities will be added 
224.13 	to the above-determined case mix rates to compute the operating payment rates. The 
224.14 	nonoperating components of the facility's rates will not be adjusted under this subdivision.

224.15 	Sec. 24. Minnesota Statutes 2004, section 256B.434, is amended by adding a 
224.16 	subdivision to read:
224.17 		Subd. 4h.Nursing facility rate increase effective October 1, 2007; Martin 
224.18 	County. For the rate year beginning October 1, 2007, the commissioner shall provide to a 
224.19 	nursing facility in Martin County licensed for 93 beds as of January 1, 2006, an increase in 
224.20 	the total operating payment rate of $5 per resident day for all case mix classes.

224.21 	Sec. 25. Minnesota Statutes 2004, section 256B.437, subdivision 3, is amended to read:
224.22 		Subd. 3.Applications for planned closure of nursing facilities. (a) By August 
224.23 	15, 2001, the commissioner of human services shall implement and announce a program 
224.24 	for closure or partial closure of nursing facilities. Names and identifying information 
224.25 	provided in response to the announcement shall remain private unless approved, according 
224.26 	to the timelines established in the plan. The announcement must specify:
224.27 	(1) the criteria in subdivision 4 that will be used by the commissioner to approve or 
224.28 	reject applications;
224.29 	(2) the information that must accompany an application; and
224.30 	(3) that applications may combine planned closure rate adjustments with moratorium 
224.31 	exception funding, in which case a single application may serve both purposes.
224.32 	Between August 1, 2001, and June 30, 2003, the commissioner may approve planned 
224.33 	closures of up to 5,140 nursing facility beds, less the number of beds delicensed in 
225.1 	facilities during the same time period without approved closure plans or that have notified 
225.2 	the commissioner of health of their intent to close without an approved closure plan. 
225.3 	Beginning July 1, 2004, the commissioner may negotiate a planned closure rate adjustment 
225.4 	for nursing facilities providing the proposal, cumulatively, with other proposals that have 
225.5 	been approved, has no cost to the state. For planned closure rate adjustments negotiated 
225.6 	after March 1, 2006, the limit of $2,080 in subdivision 6, paragraph (a), clause (1), shall 
225.7 	not apply. The removal of the limit in subdivision 6, paragraph (a), clause (1), shall not 
225.8 	constitute an increase to the amount specified in subdivision 6, paragraph (a), clause (1), 
225.9 	for the purposes of subdivision 6, paragraph (f).
225.10 	(b) A facility or facilities reimbursed under section  256B.431 or  256B.434 with a 
225.11 	closure plan approved by the commissioner under subdivision 5 may assign a planned 
225.12 	closure rate adjustment to another facility or facilities that are not closing or in the case of 
225.13 	a partial closure, to the facility undertaking the partial closure. A facility may also elect to 
225.14 	have a planned closure rate adjustment shared equally by the five nursing facilities with 
225.15 	the lowest total operating payment rates in the state development region designated under 
225.16 	section  462.385, in which the facility that is closing is located. The planned closure 
225.17 	rate adjustment must be calculated under subdivision 6. Facilities that delicense beds 
225.18 	without a closure plan, or whose closure plan is not approved by the commissioner, are not 
225.19 	eligible to assign a planned closure rate adjustment under subdivision 6, unless they are 
225.20 	delicensing five or fewer beds, or less than six percent of their total licensed bed capacity, 
225.21 	whichever is greater, are located in a county in the top three quartiles of beds per 1,000 
225.22 	persons aged 65 or older, and have not delicensed beds in the prior three months. Facilities 
225.23 	meeting these criteria are eligible to assign the amount calculated under subdivision 6 to 
225.24 	themselves. If a facility is delicensing the greater of six or more beds, or six percent or 
225.25 	more of its total licensed bed capacity, and does not have an approved closure plan or is 
225.26 	not eligible for the adjustment under subdivision 6, the commissioner shall calculate the 
225.27 	amount the facility would have been eligible to assign under subdivision 6, and shall use 
225.28 	this amount to provide equal rate adjustments to the five nursing facilities with the lowest 
225.29 	total operating payment rates in the state development region designated under section  
225.30 	462.385, in which the facility that delicensed beds is located. 
225.31 	(c) To be considered for approval, an application must include:
225.32 	(1) a description of the proposed closure plan, which must include identification of 
225.33 	the facility or facilities to receive a planned closure rate adjustment;
225.34 	(2) the proposed timetable for any proposed closure, including the proposed dates 
225.35 	for announcement to residents, commencement of closure, and completion of closure;
226.1 	(3) if available, the proposed relocation plan for current residents of any facility 
226.2 	designated for closure. If a relocation plan is not available, the application must include a 
226.3 	statement agreeing to develop a relocation plan designed to comply with section  144A.161; 
226.4 	(4) a description of the relationship between the nursing facility that is proposed for 
226.5 	closure and the nursing facility or facilities proposed to receive the planned closure rate 
226.6 	adjustment. If these facilities are not under common ownership, copies of any contracts, 
226.7 	purchase agreements, or other documents establishing a relationship or proposed 
226.8 	relationship must be provided;
226.9 	(5) documentation, in a format approved by the commissioner, that all the nursing 
226.10 	facilities receiving a planned closure rate adjustment under the plan have accepted joint 
226.11 	and several liability for recovery of overpayments under section  256B.0641, subdivision 
226.12 	2, for the facilities designated for closure under the plan; and 
226.13 	(6) an explanation of how the application coordinates with planning efforts under 
226.14 	subdivision 2. If the planning group does not support a level of nursing facility closures 
226.15 	that the commissioner considers to be reasonable, the commissioner may approve a 
226.16 	planned closure proposal without its support.
226.17 	(d) The application must address the criteria listed in subdivision 4.

226.18 	EFFECTIVE DATE. This section is effective retroactively from March 1, 2006.

226.19 	Sec. 26. Minnesota Statutes 2004, section 256B.438, subdivision 4, is amended to read:
226.20 		Subd. 4.Resident assessment schedule. (a) Nursing facilities shall conduct and 
226.21 	submit case mix assessments according to the schedule established by the commissioner 
226.22 	of health under section  144.0724, subdivisions 4 and 5. 
226.23 	(b) The resident reimbursement classifications established under section  144.0724, 
226.24 	subdivision 3, shall be effective the day of admission for new admission assessments. The 
226.25 	effective date for significant change assessments shall be the assessment reference date. 
226.26 	The effective date for annual and second quarterly assessments shall be the first day of the 
226.27 	month following assessment reference date. 
226.28 	(c) Effective October 1, 2006, the commissioner shall rebase payment rates 
226.29 	to account for the change in the resident assessment schedule in section 144.0724, 
226.30 	subdivision 4, paragraph (b), clause (4), in a facility specific budget neutral manner, 
226.31 	according to subdivision 7, paragraph (b).

226.32 	Sec. 27. Minnesota Statutes 2005 Supplement, section 256B.5012, subdivision 6, 
226.33 	is amended to read:
227.1 		Subd. 6.ICF/MR rate increases October 1, 2005, and October 1, 2006. (a) For 
227.2 	the rate periods beginning October 1, 2005, and October 1, 2006, the commissioner shall 
227.3 	make available to each facility reimbursed under this section an adjustment to the total 
227.4 	operating payment rate of 2.2553 percent.
227.5 	(b) 75 percent of the money resulting from the rate adjustment under paragraph (a) 
227.6 	must be used to increase wages and benefits and pay associated costs for all employees, 
227.7 	except for administrative and central office employees. 75 percent of the money received 
227.8 	by a facility as a result of the rate adjustment provided in paragraph (a) must be used only 
227.9 	for wage, benefit, and staff increases implemented on or after the effective date of the rate 
227.10 	increase each year, and must not be used for increases implemented prior to that date. The 
227.11 	wage adjustment eligible employees may receive may vary based on merit, seniority, or 
227.12 	other factors determined by the provider.
227.13 	(c) For each facility, the commissioner shall make available an adjustment, based 
227.14 	on occupied beds,  using the percentage specified in paragraph (a) multiplied by the total 
227.15 	payment rate, including variable rate but excluding the property-related payment rate, in 
227.16 	effect on the preceding day. The total payment rate shall include the adjustment provided 
227.17 	in section 256B.501, subdivision 12.
227.18 	(d) A facility whose payment rates are governed by closure agreements, receivership 
227.19 	agreements, or Minnesota Rules, part 9553.0075, is not eligible for an adjustment 
227.20 	otherwise granted under this subdivision.
227.21 	(e) A facility may apply for the portion of the payment rate adjustment provided 
227.22 	under paragraph (a) for employee wages and benefits and associated costs. The application 
227.23 	must be made to the commissioner and contain a plan by which the facility will distribute 
227.24 	the funds according to paragraph (b). For facilities in which the employees are represented 
227.25 	by an exclusive bargaining representative, an agreement negotiated and agreed to by the 
227.26 	employer and the exclusive bargaining representative constitutes the plan. A negotiated 
227.27 	agreement may constitute the plan only if the agreement is finalized after the date of 
227.28 	enactment of all rate increases for the rate year. The commissioner shall review the plan to 
227.29 	ensure that the payment rate adjustment per diem is used as provided in this subdivision. 
227.30 	To be eligible, a facility must submit its plan by March 31, 2006, and December 31, 
227.31 	2006, respectively. If a facility's plan is effective for its employees after the first day of 
227.32 	the applicable rate period that the funds are available, the payment rate adjustment per 
227.33 	diem is effective the same date as its plan.
227.34 	(f) A copy of the approved distribution plan must be made available to all employees 
227.35 	by giving each employee a copy or by posting it in an area of the facility to which all 
227.36 	employees have access. If an employee does not receive the wage and benefit adjustment 
228.1 	described in the facility's approved plan and is unable to resolve the problem with the 
228.2 	facility's management or through the employee's union representative, the employee 
228.3 	may contact the commissioner at an address or telephone number provided by the 
228.4 	commissioner and included in the approved plan.

228.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

228.6 	Sec. 28. Minnesota Statutes 2004, section 256B.69, subdivision 9, is amended to read:
228.7 		Subd. 9.Reporting. (a) Each demonstration provider shall submit information as 
228.8 	required by the commissioner, including data required for assessing client satisfaction, 
228.9 	quality of care, cost, and utilization of services for purposes of project evaluation. The 
228.10 	commissioner shall also develop methods of data reporting and collection from county 
228.11 	advocacy activities in order to provide aggregate enrollee information on encounters 
228.12 	and outcomes to determine access and quality assurance. Required information shall be 
228.13 	specified before the commissioner contracts with a demonstration provider.
228.14 	(b) Aggregate nonpersonally identifiable health plan encounter data, aggregate 
228.15 	spending data for major categories of service as reported to the commissioners of 
228.16 	health and commerce under section 62D.08, subdivision 3, clause (a), and criteria for 
228.17 	service authorization and service use are public data that the commissioner shall make 
228.18 	available and use in public reports. The commissioner shall require each health plan and 
228.19 	county-based purchasing plan to provide:
228.20 	(1) encounter data for each service provided, using standard codes and unit of 
228.21 	service definitions set by the commissioner, in a form that the commissioner can report by 
228.22 	age, eligibility groups, and health plan; and
228.23 	(2) criteria, written policies, and procedures required to be disclosed under section 
228.24 	62M.10, subdivision 7, and Code of Federal Regulations, title 42, part 438.210(b)(1), used 
228.25 	for each type of service for which authorization is required.

228.26 	Sec. 29. Minnesota Statutes 2005 Supplement, section 256B.69, subdivision 23, 
228.27 	is amended to read:
228.28 		Subd. 23.Alternative services; elderly and disabled persons. (a) The 
228.29 	commissioner may implement demonstration projects to create alternative integrated 
228.30 	delivery systems for acute and long-term care services to elderly persons and persons 
228.31 	with disabilities as defined in section 256B.77, subdivision 7a, that provide increased 
228.32 	coordination, improve access to quality services, and mitigate future cost increases. 
228.33 	The commissioner may seek federal authority to combine Medicare and Medicaid 
228.34 	capitation payments for the purpose of such demonstrations and may contract with 
229.1 	Medicare-approved special needs plans to provide Medicaid services. Medicare funds 
229.2 	and services shall be administered according to the terms and conditions of the federal 
229.3 	waiver contract and demonstration provisions. For the purpose of administering medical 
229.4 	assistance funds, demonstrations under this subdivision are subject to subdivisions 1 to 
229.5 	22. The provisions of Minnesota Rules, parts 9500.1450 to 9500.1464, apply to these 
229.6 	demonstrations, with the exceptions of parts 9500.1452, subpart 2, item B; and 9500.1457, 
229.7 	subpart 1, items B and C, which do not apply to persons enrolling in demonstrations 
229.8 	under this section. An initial open enrollment period may be provided. Persons who 
229.9 	disenroll from demonstrations under this subdivision remain subject to Minnesota Rules, 
229.10 	parts 9500.1450 to 9500.1464. When a person is enrolled in a health plan under these 
229.11 	demonstrations and the health plan's participation is subsequently terminated for any 
229.12 	reason, the person shall be provided an opportunity to select a new health plan and shall 
229.13 	have the right to change health plans within the first 60 days of enrollment in the second 
229.14 	health plan. Persons required to participate in health plans under this section who fail 
229.15 	to make a choice of health plan shall not be randomly assigned to health plans under 
229.16 	these demonstrations. Notwithstanding section 256L.12, subdivision 5, and Minnesota 
229.17 	Rules, part 9505.5220, subpart 1, item A, if adopted, for the purpose of demonstrations 
229.18 	under this subdivision, the commissioner may contract with managed care organizations, 
229.19 	including counties, to serve only elderly persons eligible for medical assistance, elderly 
229.20 	and disabled persons, or disabled persons only. For persons with primary diagnoses of 
229.21 	mental retardation or a related condition, serious and persistent mental illness, or serious 
229.22 	emotional disturbance, the commissioner must ensure that the county authority has 
229.23 	approved the demonstration and contracting design. Enrollment in these projects for 
229.24 	persons with disabilities shall be voluntary. The commissioner shall not implement any 
229.25 	demonstration project under this subdivision for persons with primary diagnoses of 
229.26 	mental retardation or a related condition, serious and persistent mental illness, or serious 
229.27 	emotional disturbance, without approval of the county board of the county in which the 
229.28 	demonstration is being implemented.
229.29 	(b) Notwithstanding chapter 245B, sections 252.40 to 252.46, 256B.092, 256B.501
229.30 	to 256B.5015, and Minnesota Rules, parts 9525.0004 to 9525.0036, 9525.1200 to 
229.31 	9525.1330, 9525.1580, and 9525.1800 to 9525.1930, the commissioner may implement 
229.32 	under this section projects for persons with developmental disabilities. The commissioner 
229.33 	may capitate payments for ICF/MR services, waivered services for mental retardation or 
229.34 	related conditions, including case management services, day training and habilitation and 
229.35 	alternative active treatment services, and other services as approved by the state and by the 
229.36 	federal government. Case management and active treatment must be individualized and 
230.1 	developed in accordance with a person-centered plan. Costs under these projects may not 
230.2 	exceed costs that would have been incurred under fee-for-service. Beginning July 1, 2003, 
230.3 	and until two years after the pilot project implementation date, subcontractor participation 
230.4 	in the long-term care developmental disability pilot is limited to a nonprofit long-term 
230.5 	care system providing ICF/MR services, home and community-based waiver services, 
230.6 	and in-home services to no more than 120 consumers with developmental disabilities in 
230.7 	Carver, Hennepin, and Scott Counties. The commissioner shall report to the legislature 
230.8 	prior to expansion of the developmental disability pilot project. This paragraph expires 
230.9 	two years after the implementation date of the pilot project.
230.10 	(c) Before implementation of a demonstration project for disabled persons, the 
230.11 	commissioner must provide information to appropriate committees of the house of 
230.12 	representatives and senate and must involve representatives of affected disability groups 
230.13 	in the design of the demonstration projects.
230.14 	(d) A nursing facility reimbursed under the alternative reimbursement methodology 
230.15 	in section 256B.434 may, in collaboration with a hospital, clinic, or other health care entity 
230.16 	provide services under paragraph (a). The commissioner shall amend the state plan and 
230.17 	seek any federal waivers necessary to implement this paragraph.
230.18 	(e) The commissioner, in consultation with the commissioners of commerce and 
230.19 	health, may approve and implement programs for all-inclusive care for the elderly (PACE) 
230.20 	according to federal laws and regulations governing that program and state laws or rules 
230.21 	applicable to participating providers. The process for approval of these programs shall 
230.22 	begin only after the commissioner receives grant money in an amount sufficient to cover 
230.23 	the state share of the administrative and actuarial costs to implement the programs during 
230.24 	state fiscal years 2006 and 2007. Grant amounts for this purpose shall be deposited in an 
230.25 	account in the special revenue fund and are appropriated to the commissioner to be used 
230.26 	solely for the purpose of PACE administrative and actuarial costs. A PACE provider is 
230.27 	not required to be licensed or certified as a health plan company as defined in section 
230.28 	62Q.01, subdivision 4. Persons age 55 and older who have been screened by the county 
230.29 	and found to be eligible for services under the elderly waiver or community alternatives 
230.30 	for disabled individuals or who are already eligible for Medicaid but meet level of 
230.31 	care criteria for receipt of waiver services may choose to enroll in the PACE program. 
230.32 	Medicare and Medicaid services will be provided according to this subdivision and 
230.33 	federal Medicare and Medicaid requirements governing PACE providers and programs. 
230.34 	PACE enrollees will receive Medicaid home and community-based services through the 
230.35 	PACE provider as an alternative to services for which they would otherwise be eligible 
230.36 	through home and community-based waiver programs and Medicaid State Plan Services. 
231.1 	The commissioner shall establish Medicaid rates for PACE providers that do not exceed 
231.2 	costs that would have been incurred under fee-for-service or other relevant managed care 
231.3 	programs operated by the state.
231.4 	(f) The commissioner shall seek federal approval to expand the Minnesota disability 
231.5 	health options (MnDHO) program established under this subdivision in stages, first to 
231.6 	regional population centers outside the seven-county metro area and then to all areas 
231.7 	of the state. Until January 1, 2008, expansion for MnDHO projects that include home 
231.8 	and community-based services is limited to the two projects and service areas in effect 
231.9 	on March 1, 2006.  Enrollment in integrated MnDHO programs that include home and 
231.10 	community-based services shall remain voluntary. Costs for home and community-based 
231.11 	services included under MnDHO must not exceed costs that would have been incurred 
231.12 	under the fee-for-service program. In developing program specifications for expansion of 
231.13 	integrated programs, the commissioner shall involve and consult the state-level stakeholder 
231.14 	group established in subdivision 28, paragraph (d), including consultation on whether and 
231.15 	how to include home and community-based waiver programs. Plans for further expansion 
231.16 	of MnDHO projects shall be presented to the chairs of the house and senate committees 
231.17 	with jurisdiction over health and human services policy and finance by February 1, 2007.
231.18 	(g) Notwithstanding section 256B.0261, health plans providing services under this 
231.19 	section are responsible for home care targeted case management and relocation targeted 
231.20 	case management. Services must be provided according to the terms of the waivers and 
231.21 	contracts approved by the federal government.

231.22 	EFFECTIVE DATE. This section is effective the day following final enactment. 

231.23 	Sec. 30. Minnesota Statutes 2004, section 256B.69, is amended by adding a 
231.24 	subdivision to read:
231.25 		Subd. 28.Medicare special needs plans and medical assistance basic health 
231.26 	care for persons with disabilities. (a) The commissioner may contract with qualified 
231.27 	Medicare-approved special needs plans to provide medical assistance basic health care 
231.28 	services to persons with disabilities, including those with developmental disabilities. 
231.29 	Basic health care services include:
231.30 	(1) those services covered by the medical assistance state plan except for ICF/MR 
231.31 	services, home and community-based waiver services, case management for persons with 
231.32 	developmental disabilities under section 256B.0625, subdivision 20a, and personal care 
231.33 	and certain home care services defined by the commissioner in consultation with the 
231.34 	stakeholder group established under paragraph (d); and
232.1 	(2) basic health care services may also include risk for up to 100 days of nursing 
232.2 	facility services for persons who reside in a noninstitutional setting and home health 
232.3 	services related to rehabilitation as defined by the commissioner after consultation with 
232.4 	the stakeholder group.
232.5 	 The commissioner may exclude other medical assistance services from the basic 
232.6 	health care benefit set. Enrollees in these plans can access any excluded services on the 
232.7 	same basis as other medical assistance recipients who have not enrolled.
232.8 	Unless a person is otherwise required to enroll in managed care, enrollment in these 
232.9 	plans for Medicaid services must be voluntary. For purposes of this subdivision, automatic 
232.10 	enrollment with an option to opt out is not voluntary enrollment. 
232.11 	(b) Beginning January 1, 2007, the commissioner may contract with qualified 
232.12 	Medicare special needs plans to provide basic health care services under medical 
232.13 	assistance to persons who are dually eligible for both Medicare and Medicaid and those 
232.14 	Social Security beneficiaries eligible for Medicaid but in the waiting period for Medicare. 
232.15 	The commissioner shall consult with the stakeholder group under paragraph (d) in 
232.16 	developing program specifications for these services. The commissioner shall report to 
232.17 	the chairs of the house and senate committees with jurisdiction over health and human 
232.18 	services policy and finance by February 1, 2007, on implementation of these programs and 
232.19 	the need for increased funding for the ombudsman for managed care and other consumer 
232.20 	assistance and protections needed due to enrollment in managed care of persons with 
232.21 	disabilities. Payment for Medicaid services provided under this subdivision for the months 
232.22 	of May and June will be made no earlier than July 1 of the same calendar year.
232.23 	(c) Beginning January 1, 2008, the commissioner may expand contracting under this 
232.24 	subdivision to all persons with disabilities not otherwise required to enroll in managed 
232.25 	care.
232.26 	(d) The commissioner shall establish a state-level stakeholder group to provide 
232.27 	advice on managed care programs for persons with disabilities, including both MnDHO 
232.28 	and contracts with special needs plans that provide basic health care services as described 
232.29 	in paragraphs (a) and (b). The stakeholder group shall provide advice on program 
232.30 	expansions under this subdivision and subdivision 23, including:
232.31 	(1) implementation efforts; 
232.32 	(2) consumer protections; and 
232.33 	(3) program specifications such as quality assurance measures, data collection and 
232.34 	reporting, and evaluation of costs, quality, and results.
232.35 	(e) Each plan under contract to provide medical assistance basic health care services 
232.36 	shall establish a local or regional stakeholder group, including representatives of the 
233.1 	counties covered by the plan, members, consumer advocates, and providers, for advice on 
233.2 	issues that arise in the local or regional area.

233.3 	Sec. 31. Laws 2005, First Special Session chapter 4, article 7, section 55, is amended 
233.4 	to read:
233.5 	Sec. 55. COMMUNITY SERVICES PROVIDER RATE INCREASES
233.6 	
233.7 	(a) The commissioner of human services shall increase  reimbursement rates or 
233.8 	rate limits, as applicable, by 2.2553  percent for the rate period beginning October 1, 
233.9 	2005, and the  rate period beginning October 1, 2006, effective for services  rendered on 
233.10 	or after those dates.  
233.11 	
233.12 	(b) The 2.2553 percent annual rate increase described in  this section must be 
233.13 	provided to:  
233.14 	
233.15 	(1) home and community-based waivered services for persons  with mental 
233.16 	retardation or related conditions, including consumer directed community supports,  under 
233.17 	Minnesota  Statutes, section 256B.501;  
233.18 	
233.19 	(2) home and community-based waivered services for the  elderly under Minnesota 
233.20 	Statutes, section 256B.0915;  
233.21 	
233.22 	(3) waivered services under community alternatives for  disabled individuals under 
233.23 	Minnesota Statutes, section 256B.49;  
233.24 	
233.25 	(4) community alternative care waivered services, including consumer directed 
233.26 	community supports,  under  Minnesota Statutes, section 256B.49;  
233.27 	
233.28 	(5) traumatic brain injury waivered services, including consumer directed 
233.29 	community supports,  under  Minnesota Statutes, section 256B.49;  
233.30 	
233.31 	(6) nursing services and home health services under  Minnesota Statutes, section 
233.32 	256B.0625, subdivision 6a;  
233.33 	
233.34 	(7) personal care services and nursing supervision of  personal care services under 
233.35 	Minnesota Statutes, section  256B.0625, subdivision 19a;  
234.1 	
234.2 	(8) private duty nursing services under Minnesota Statutes,  section 256B.0625, 
234.3 	subdivision 7;  
234.4 	
234.5 	(9) day training and habilitation services for adults with  mental retardation or related 
234.6 	conditions under Minnesota  Statutes, sections 252.40 to 252.46;  
234.7 	
234.8 	(10) alternative care services under Minnesota Statutes,  section 256B.0913;  
234.9 	
234.10 	(11) adult residential program grants under Minnesota  Rules, parts 9535.2000 to 
234.11 	9535.3000;  
234.12 	
234.13 	(12) adult and family community support grants under  Minnesota Rules, parts 
234.14 	9535.1700 to 9535.1760;  
234.15 	
234.16 	(13) the group residential housing supplementary service  rate under Minnesota 
234.17 	Statutes, section 256I.05, subdivision 1a;  
234.18 	
234.19 	(14) adult mental health integrated fund grants under  Minnesota Statutes, section 
234.20 	245.4661;  
234.21 	
234.22 	(15) semi-independent living services under Minnesota  Statutes, section 252.275, 
234.23 	including SILS funding under county  social services grants formerly funded under 
234.24 	Minnesota Statutes,  chapter 256I;  
234.25 	
234.26 	(16) community support services for deaf and  hard-of-hearing adults with mental 
234.27 	illness who use or wish to  use sign language as their primary means of communication;  
234.28 	
234.29 	(17) living skills training programs for persons with  intractable epilepsy who need 
234.30 	assistance in the transition to  independent living;  
234.31 	
234.32 	(18) physical therapy services under sections 256B.0625,  subdivision 8, and 
234.33 	256D.03, subdivision 4;  
234.34 	
234.35 	(19) occupational therapy services under sections  256B.0625, subdivision 8a, and 
234.36 	256D.03, subdivision 4;  
235.1 	
235.2 	(20) speech-language therapy services under section  256D.03, subdivision 4, and 
235.3 	Minnesota Rules, part 9505.0390; and  
235.4 	
235.5 	(21) respiratory therapy services under section 256D.03,  subdivision 4, and 
235.6 	Minnesota Rules, part 9505.0295.  
235.7 	(c) For services funded through Minnesota disability health options, the rate increase 
235.8 	under this section shall apply to all medical assistance payments, including former group 
235.9 	residential housing supplementary rates under Minnesota Statutes, chapter 256I.
235.10 	
235.11 	(c) (d) Providers that receive a rate increase under this  section shall use 75 percent 
235.12 	of the additional revenue to  increase wages and benefits and pay associated costs for all
235.13 	employees, except for management fees, the administrator, and  central office staffs. The 
235.14 	wage adjustment eligible employees may receive may vary based on merit, seniority, or 
235.15 	other factors determined by the provider.
235.16 	
235.17 	(d) (e) For public employees, the increase for wages and  benefits for certain staff is 
235.18 	available and pay rates shall be  increased only to the extent that they comply with laws  
235.19 	governing public employees collective bargaining.  Money  received by a provider for pay 
235.20 	increases under this section may  be used only for increases implemented on or after the 
235.21 	first day  of the rate period in which the increase is available and must  not be used for 
235.22 	increases implemented prior to that date.  
235.23 	
235.24 	(e) (f)  A copy of the provider's plan for complying with  paragraph (c) (d) must be 
235.25 	made available to all employees by giving  each employee a copy or by posting a copy in 
235.26 	an area of the  provider's operation to which all employees have access.  If an  employee 
235.27 	does not receive the adjustment, if any, described in  the plan and is unable to resolve the 
235.28 	problem with the provider,  the employee may contact the employee's union representative.  
235.29 	If the employee is not covered by a collective bargaining  agreement, the employee may 
235.30 	contact the commissioner at a  telephone number provided by the commissioner and 
235.31 	included in  the provider's plan.  

235.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

235.33 	Sec. 32. Laws 2005, First Special Session chapter 4, article 9, section 5, subdivision 8, 
235.34 	is amended to read:

236.1	Subd. 8.Board of Nursing
 		3,078,000
		3,631,000
	
236.2 	BASE ADJUSTMENT. The base for the  
236.3 	board of nursing is increased by  $141,000 
236.4 	in fiscal year 2008 and by  $216,000 in fiscal 
236.5 	year 2009.  
236.6 	BOARD OF NURSING 
236.7 	APPROPRIATIONS  INCREASE. Of 
236.8 	this appropriation,  $120,000 the first year 
236.9 	and $126,000  the second year are for the 
236.10 	increased  cost of board operations, excluding  
236.11 	salary increases and $85,000 each year  is to 
236.12 	hire an advanced practice  registered nurse.  
236.13 	TRANSFERS FROM SPECIAL 
236.14 	REVENUE FUND.  Of this appropriation, 
236.15 	the following  transfers shall be made as 
236.16 	directed  from the state government special  
236.17 	revenue fund:  
236.18 	(a) $392,000 in fiscal year 2006,  $864,000 
236.19 	in fiscal year 2007, $930,000  in fiscal year 
236.20 	2008, and $930,000 in  fiscal year 2009 
236.21 	shall be transferred  to the general fund 
236.22 	and is appropriated  to the Department 
236.23 	of Human Services to  offset the state 
236.24 	share of the medical  assistance program 
236.25 	costs of the  long-term care and home and  
236.26 	community-based care employee  scholarship 
236.27 	program and associated  administrative costs.  
236.28 	At the end of  each biennium, any funds 
236.29 	not expended  for the scholarship program 
236.30 	and  associated administrative costs shall  
236.31 	be transferred to the state government 
236.32 	special revenue fund carried over to the 
236.33 	next biennium for the same purpose.  
237.1 	Notwithstanding  section 15, this paragraph 
237.2 	expires June  30, 2009 2011.  
237.3 	(b) $125,000 the first year and  $200,000 the 
237.4 	second year shall be  transferred to the health 
237.5 	professional  education loan forgiveness 
237.6 	program  account for loan forgiveness 
237.7 	for nurses  under Minnesota Statutes, 
237.8 	section  144.1501.  This appropriation shall  
237.9 	become part of base level funding for  the 
237.10 	commissioner for the biennium  beginning 
237.11 	July 1, 2007, but shall not  be part of base 
237.12 	level funding for the  biennium beginning 
237.13 	July 1, 2009.  Notwithstanding section 15, 
237.14 	this  paragraph expires on June 30, 2009.  

237.15 	Sec. 33. STAKEHOLDER PARTICIPATION.
 237.16 	The commissioner of human services shall confer with one or more stakeholder 
237.17 	groups of interested persons, including representatives of recipients, advocacy groups, 
237.18 	counties, providers, and health plans to provide information and advice on the development 
237.19 	of any substantial proposals for changes in the medical assistance program authorized by 
237.20 	the federal Deficit Reduction Act of 2005, Public Law 109-171. In addition, for any 
237.21 	substantial Deficit Reduction Act-related medical assistance change that affects recipients 
237.22 	and that is proposed outside of the legislative or rulemaking process, the commissioner 
237.23 	shall convene a stakeholder meeting and provide a 30-day comment period before the 
237.24 	change becomes effective. If the time frame required to comply with a federal mandate 
237.25 	precludes the 30-day advance notice, notice shall be given to the stakeholder group as 
237.26 	soon as possible.

237.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

237.28 	Sec. 34. ICF/MR PLAN.
 237.29 	The commissioner of human services shall consult with ICF/MR providers, 
237.30 	advocates, counties, and consumer families to develop a stakeholder plan and legislation 
237.31 	concerning the future services provided to people served in ICFs/MR. The plan shall be 
237.32 	reported to the house and senate committees with jurisdiction over health and human 
238.1 	services policy and finance issues by December 15, 2008. In preparing the plan, the 
238.2 	commissioner shall consider:
238.3 	(1) consumer choice of services;
238.4 	(2) consumers' service needs, including, but not limited to, active treatment;
238.5 	(3) the total cost of providing services in ICFs/MR and alternative delivery systems 
238.6 	for individuals currently residing in ICFs/MR;
238.7 	(4) the impact of the payment shift to counties for ICFs/MR with more than six beds;
238.8 	(5) whether it is the policy of the state to maintain an ICF/MR system and, if so, 
238.9 	the plan shall:
238.10 	(i) define the purpose, types of services, and intended recipients of ICF/MR services;
238.11 	(ii) define the capacity needed to maintain ICF/MR services for designated 
238.12 	populations;
238.13 	(iii) evaluate incentives for counties to maintain ICF/MR services;
238.14 	(iv) ensure that mechanisms are provided to adequately fund the transition to the 
238.15 	defined services, maintain the designated capacity, and are adjustable to meet increased 
238.16 	service demands; and
238.17 	(v) address the extent to which there is consensus among stakeholders; and
238.18 	(6) if alternative services are recommended to support the people now receiving 
238.19 	services in an ICF/MR, the plan shall provide for transition planning and ensure adequate 
238.20 	state and federal financial resources are available to meet the needs of ICF/MR recipients.

238.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

238.22 	Sec. 35. ADDITIONAL WAIVER ALLOCATIONS.
 238.23 	Notwithstanding the waiver growth limits in Laws 2005, First Special Session 
238.24 	chapter 4, article 9, section 2, paragraph (d), the commissioner may allocate an additional 
238.25 	waiver allocation under Minnesota Statutes, section 256B.49, for a recipient of personal 
238.26 	care assistant services who is eligible for and chooses waivered services and received 
238.27 	personal care assistant services from a provider who was billing for a service delivery 
238.28 	model for that recipient other than individual or shared care on March 1, 2006.

238.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

238.30 	Sec. 36. REPORT ON NEW CASE MIX INDICES.
 238.31 	The commissioner of human services shall report to the legislature by December 15, 
238.32 	2006, recommendations on the weighting and implementation of case mix indices.

239.1 	Sec. 37. REPAYMENT DELAY.
 239.2 	A county that overspent its allowed amounts in calendar year 2004 or 2005 under 
239.3 	the waivered services program for persons with developmental disabilities shall not be 
239.4 	required to pay back the amount of overspending until May 31, 2007.

239.5 	ARTICLE 21
239.6 	HUMAN SERVICES FORECAST ADJUSTMENTS

239.7	Section 1. DEPARTMENT OF HUMAN SERVICES FORECAST ADJUSTMENT
 	
239.8 	The dollar amounts shown are added to or, if shown in parentheses, are subtracted 
239.9 	from the appropriations in Laws 2005, First Special Session chapter 4, and are 
239.10 	appropriated from the general fund, or any other fund named, to the Department of 
239.11 	Human Services for the purposes specified in this article, to be available for the fiscal year 
239.12 	indicated for each purpose. The figures "2006" and "2007" used in this article means 
239.13 	that the appropriation or appropriations listed are available for the respective fiscal year 
239.14 	ending June 30, 2006 or June 30, 2007.

239.15	SUMMARY BY FUND
	
239.16					2006
		2007
	
239.17	General Fund
			$
	(58,333,000)
	$
	(17,589,000)
	
239.18	Health Care Access
				(44,511,000)
		(62,360,000)
	
239.19	TANF
				(13,807,000)
		(3,866,000)
	
239.20	TOTAL
			$
	(116,651,000)
	$
	(83,815,000)

239.21
239.22	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

239.23	Subdivision 1.Total Appropriation
 	$
	(116,651,000)
	$
	(83,815,000)

239.24	Summary by Fund
	
239.25	General
	(58,333,000)
	(17,589,000)
	
239.26	Health Care Access
	(44,511,000)
	(62,360,000)
	
239.27	TANF
	(13,807,000)
	(3,866,000)

239.28	Subd.  2.Revenue and Pass-Through

239.29	TANF
		(1,446,000)
		(1,177,000)

240.1
240.2	Subd.  3.Children and Economic Assistance 
Grants

240.3	General
		(4,469,000)
		1,785,000
	
240.4	TANF
				(12,361,000)
		(2,689,000)
	
240.5 	The amount that may be spent from this 
240.6 	appropriation for each purpose is as follows:

240.7	(a) Minnesota Family Investment Program

240.8	General
		6,048,000
		(393,000)
	
240.9	TANF
				(12,361,000)
		(2,689,000)

240.10	(b) MFIP Child Care Assistance Grants
					
240.11	General Fund
		(5,090,000)
		2,751,000

240.12	(c) General Assistance
		2,540,000
		3,947,000

240.13	(d) Minnesota Supplemental Aid
		(285,000)
		551,000
	
240.14
240.15	(e) Group Residential 
Housing
				(7,682,000)
		(5,071,000)

240.16	Subd.  4.Basic Health Care Grants

240.17	General
		(19,022,000)
		10,499,000
	
240.18	Health Care Access
				(44,511,000)
		(62,360,000)
	
240.19 	The amount that may be spent from this 
240.20 	appropriation for each purpose is as follows:

240.21	(a) MinnesotaCare

240.22	Health Care Access
		(44,511,000)
		(62,360,000)

240.23
240.24	(b) MA Basic Health Care - Families and 
Children

240.25	General
		(29,882,000)
		(54,401,000)

241.1
241.2	(c) MA Basic Health Care - Elderly and 
Disabled

241.3	General
		(2,857,000)
		33,179,000

241.4	(d) General Assistance Medical Care

241.5	General
		13,717,000
		 31,721,000

241.6	Subd.  5.Continuing Care Grants

241.7	General
		(34,842,000)
		(29,873,000)
	
241.8 	The amount that may be spent from this 
241.9 	appropriation for each purpose is as follows:

241.10	(a) MA Long-Term Care Waivers

241.11	General
		(23,368,000)
		(35,953,000)

241.12	(b) MA Long-Term Care Facilities

241.13	General
		(16,251,000)
		(5,202,000)

241.14	(c) Chemical Dependency Entitlement Grants

241.15	General
		4,777,000
		11,282,000

241.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

241.17 	ARTICLE 22
241.18 	HEALTH AND HUMAN SERVICES APPROPRIATIONS

241.19	Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
241.20 	The sums shown in the columns marked "APPROPRIATIONS" are added to or, if 
241.21 	shown in parentheses, subtracted from the appropriations in Laws 2005, First Special 
241.22 	Session chapter 4, article 9, or other law to the agencies and for the purposes specified 
241.23 	in this article.  The appropriations are from the general fund or another named fund and 
241.24 	are available for the fiscal years indicated for each purpose.  The figures "2006" and 
241.25 	"2007" used in this article mean that the addition to or subtraction from the appropriation 
242.1 	listed under them is available for the fiscal year ending June 30, 2006, or June 30, 
242.2 	2007, respectively. "The first year" is fiscal year 2006. "The second year" is fiscal year 
242.3 	2007. "The biennium" is fiscal years 2006 and 2007.  Supplementary appropriations and 
242.4 	reductions to appropriations for the fiscal year ending June 30, 2006, are effective the 
242.5 	day following final enactment.

242.6	SUMMARY BY FUND
	
242.7			2006
		2007
		TOTAL
	
242.8	General
	$
	30,989,000
	$
	75,663,000
	$
	106,652,000
	
242.9	Health Care Access
		-0-
		6,116,000
		6,116,000
	
242.10	Special Revenue
		514,000
		762,000
		1,276,000
	
242.11	Federal TANF
		7,484,000
		416,000
		7,900,000
	
242.12	TOTAL
	$
	38,987,000
	$
	82,957,000
	$
	121,944,000

242.13				APPROPRIATIONS
	
242.14				Available for the Year
	
242.15				Ending June 30
	
242.16					2006
		2007

242.17
242.18	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES 

242.19	Subdivision 1.Total Appropriation
 		36,025,000
		71,905,000

242.20	Summary by Fund
	
242.21	General
	28,541,000
	66,873,000
	
242.22	Health Care Access
	-0-
	4,616,000
	
242.23	TANF
	7,484,000
	416,000

242.24	Subd.  2.Health Care Grants

242.25	(a) MinnesotaCare Grants
	
242.26	Health Care Access
	-0-
	(1,792,000)

242.27	(b) Medical Assistance Basic Health Care - Families and Children
	
242.28	General
	-0-
	75,000
	
242.29	Health Care Access
	-0-
	3,532,000

243.1	(c) Medical Assistance - Elderly and Disabled
	
243.2	General
	-0-
	(399,000)

243.3	(d) General Assistance Medical Care
	
243.4	General
	-0-
	2,108,000
	
243.5 	MEDICAL ASSISTANCE CRITICAL 
243.6 	ACCESS DENTAL PAYMENTS RATES.
243.7 	(a) Notwithstanding Minnesota Statutes, 
243.8 	section 256B.76, paragraph (c), for dental 
243.9 	services rendered on or after October 1, 
243.10 	2006, to June 30, 2007, under the medical 
243.11 	assistance program, the commissioner shall 
243.12 	increase reimbursement to dentists and dental 
243.13 	clinics deemed by the commissioner to be 
243.14 	critical access providers by 38 percent above 
243.15 	the reimbursement rate that would otherwise 
243.16 	be paid to the provider.
243.17 	(b) The commissioner shall adjust payments 
243.18 	to health plans for services provided from 
243.19 	January 1, 2007, to June 30, 2007, to reflect 
243.20 	the increase in paragraph (a).
243.21 	(c) Notwithstanding Minnesota Statutes, 
243.22 	section 295.581, the commissioner of finance 
243.23 	shall reimburse the medical assistance 
243.24 	general fund account from the health care 
243.25 	access fund the amount of medical assistance 
243.26 	expenditures related to paragraphs (a) and 
243.27 	(b), that are in excess of expenditures 
243.28 	under Minnesota Statutes, section 256B.76, 
243.29 	paragraph (c). The amounts reimbursed 
243.30 	under this section are appropriated to the 
243.31 	commissioner. 
243.32 	(d) By February 15, 2007, the commissioner 
243.33 	shall report to the legislature on the results 
244.1 	of higher payments to critical access dental 
244.2 	providers and with recommendations on 
244.3 	funding sources to continue these higher 
244.4 	payments in effect after June 30, 2007.
244.5 	(e) Notwithstanding any provision to the 
244.6 	contrary in this article, this provision shall 
244.7 	expire June 30, 2008.

244.8	Subd.  3.Health Care Management

244.9	(a) Health Care Administration
	
244.10	General
	-0-
	1,278,000
	
244.11	Health Care Access
	-0-
	336,000
	
244.12 	HEALTH CARE ADMINISTRATION 
244.13 	BASE LEVEL ADJUSTMENT.
244.14 	The general fund base for health care 
244.15 	administration shall be decreased by $94,000 
244.16 	for fiscal year 2008 and shall be decreased by 
244.17 	$641,000 for fiscal year 2009.
244.18 	HEALTH CARE ADMINISTRATION 
244.19 	BASE LEVEL ADJUSTMENT. The 
244.20 	health care access fund base for health care 
244.21 	administration shall be decreased by $35,000 
244.22 	for fiscal year 2008 and shall be decreased by 
244.23 	$336,000 for fiscal year 2009.

244.24	(b) Health Care Operations
	
244.25	General
	-0-
	28,000
	
244.26	Health Care Access
	-0-
	1,092,000
	
244.27 	HEALTH CARE OPERATIONS BASE 
244.28 	LEVEL ADJUSTMENT. The general fund 
244.29 	base for health care operations shall be 
244.30 	decreased by $4,000 for fiscal year 2008 and 
244.31 	shall be increased by $66,000 for fiscal year 
244.32 	2009.
245.1 	HEALTH CARE OPERATIONS BASE 
245.2 	LEVEL ADJUSTMENT. The health care 
245.3 	access fund base for health care operations 
245.4 	shall be decreased by $662,000 for fiscal year 
245.5 	2008 and shall be decreased by $662,000 for 
245.6 	fiscal year 2009.

245.7	Subd.  4. Continuing Care Grants

245.8	(a) Alternative Care Grants
	
245.9	General
	-0-
	1,669,000
	
245.10 	ALTERNATIVE CARE GRANTS BASE 
245.11 	LEVEL ADJUSTMENT. The general fund 
245.12 	base for alternative care grants shall be 
245.13 	decreased by $869,000 for fiscal year 2008 
245.14 	and shall be decreased by $1,252,000 for 
245.15 	fiscal year 2009.
245.16 	MEDICARE PART D INFORMATION 
245.17 	AND ASSISTANCE REIMBURSEMENT.
245.18 	Federal administrative reimbursement 
245.19 	obtained from information and assistance 
245.20 	services provided by the Senior Linkage or 
245.21 	Disability Linkage lines to people who are 
245.22 	identified as eligible for medical assistance 
245.23 	shall be appropriated to the commissioner 
245.24 	for this activity.

245.25	(b) Medical Assistance Long-term Care Facilities
	
245.26	General
	-0-
	228,000
	
245.27 	TEMPORARY RATE INCREASE.
245.28 	$30,000 in fiscal year 2007 is for a temporary 
245.29 	rate increase equivalent to six percent of the 
245.30 	operating rate in effect on July 1, 2006, for 
245.31 	a day training and habilitation provider in 
245.32 	Meeker County providing services to up to 
246.1 	110 individuals. This rate increase shall be in 
246.2 	effect only until June 30, 2007.
246.3 	The commissioner of human services shall 
246.4 	review the appropriateness of per diem rates 
246.5 	for day training and habilitation services, 
246.6 	including the reasonableness of rates paid to 
246.7 	lower cost providers, and report the results to 
246.8 	the legislature by January 15, 2007.

246.9	(c) Medical Assistance Long-Term Care Waivers
	
246.10	General
	-0-
	415,000

246.11	(d) Mental Health Grants
	
246.12	Health Care Access
	-0-
	750,000
	
246.13 	MENTAL HEALTH 
246.14 	INFRASTRUCTURE. Of this 
246.15 	appropriation, $750,000 is for adult mental 
246.16 	health infrastructure grants.
246.17 	MENTAL HEALTH GRANTS BASE 
246.18 	LEVEL ADJUSTMENT. The general 
246.19 	fund base for mental health grants shall be 
246.20 	decreased by $750,000 for fiscal year 2009.

246.21	Subd.  5.Continuing Care Management

246.22	Summary by Fund

246.23	General
	-0-
	93,000
	
246.24	Health Care Access
	-0-
	448,000
	
246.25 	OUTCOMES AND TRACKING. Of 
246.26 	this appropriation, $448,000 in fiscal year 
246.27 	2007 and $324,000 in fiscal year 2008 is 
246.28 	to implement the mental health services 
246.29 	outcomes and mental health tracking 
246.30 	systems.
247.1 	CONTINUING CARE MANAGEMENT 
247.2 	BASE LEVEL ADJUSTMENT. The 
247.3 	general fund base for continuing care 
247.4 	management shall be increased by $10,000 
247.5 	for fiscal year 2008 and shall be increased by 
247.6 	$20,000 for fiscal year 2009.
247.7 	CONTINUING CARE MANAGEMENT 
247.8 	BASE LEVEL ADJUSTMENT. The health 
247.9 	care access fund base for continuing care 
247.10 	management shall be decreased by $124,000 
247.11 	for fiscal year 2008 and shall be decreased by 
247.12 	$448,000 for fiscal year 2009.

247.13	Subd.  6.State-Operated Services

247.14	General
	36,395,000
	54,920,000
	
247.15 	MINNESOTA SECURITY HOSPITAL.
247.16 	For the purposes of enhancing the safety 
247.17 	of the public, improving supervision, and 
247.18 	enhancing community-based mental health 
247.19 	treatment, state-operated services may 
247.20 	establish additional community capacity 
247.21 	for providing treatment and supervision 
247.22 	of clients who have been ordered into a 
247.23 	less restrictive alternative of care from the 
247.24 	state-operated services transition services 
247.25 	program consistent with Minnesota Statutes, 
247.26 	section 246.014.
247.27 	STATE-OPERATED SERVICES BASE 
247.28 	ADJUSTMENT. The general fund base 
247.29 	for state-operated services is increased by 
247.30 	$8,699,000 in fiscal year 2008 and decreased 
247.31 	by $925,000 in fiscal year 2009.

247.32
247.33	Subd.  7.Children and Economic Assistance 
Grants

248.1	(a) MFIP-DWP Grants
	
248.2	General
	(7,484,000)
	7,484,000
	
248.3	Federal TANF
	7,484,000
	(7,484,000)

248.4	(b) MFIP Child Care Assistance Grants
	
248.5	General
	-0-
	62,000
	
248.6	Federal TANF
	-0-
	7,856,000
	
248.7 	CHILD CARE AND DEVELOPMENT 
248.8 	FUND; FEDERAL DEFICIT 
248.9 	REDUCTION ACT OF 2005. Increased 
248.10 	child care funds from the federal Deficit 
248.11 	Reduction Act of 2005 may be allocated by 
248.12 	the commissioner for the basic sliding fee 
248.13 	child care program.
248.14 	CHILD CARE ABSENT DAY LIMITS.
248.15 	$62,000 in fiscal year 2007 is appropriated 
248.16 	from the general fund to the commissioner 
248.17 	of human services for the MFIP/transition 
248.18 	year child care program for the purposes 
248.19 	of Minnesota Statutes, section 119B.13, 
248.20 	subdivision 7. The general fund base for 
248.21 	MFIP child care assistance grants under 
248.22 	Minnesota Statutes, section 119B.05, is 
248.23 	increased by $103,000 in fiscal year 2008 
248.24 	and by $102,000 in fiscal year 2009.
248.25 	INCREASE TANF TRANSFER TO 
248.26 	FEDERAL CHILD CARE AND 
248.27 	DEVELOPMENT FUND. In addition to 
248.28 	the TANF amounts provided in Laws 2005, 
248.29 	First Special Session chapter 4, article 9, 
248.30 	section 2, subdivisions 3 and 4, $7,856,000 
248.31 	in fiscal year 2007 is appropriated to the 
248.32 	commissioner for the purposes of MFIP 
248.33 	transition year child care under Minnesota 
249.1 	Statutes, section 119B.05. The commissioner 
249.2 	shall authorize transfer of sufficient 
249.3 	TANF funds to the federal child care and 
249.4 	development fund to meet this appropriation 
249.5 	and shall ensure that all transferred funds are 
249.6 	expended according to the federal child care 
249.7 	and development fund regulations.
249.8 	TANF MAINTENANCE OF EFFORT.
249.9 	Notwithstanding Laws 2005, First Special 
249.10 	Session chapter 4, article 9, section 2, 
249.11 	subdivision 1, the commissioner shall ensure 
249.12 	that for fiscal year 2007, the maintenance of 
249.13 	effort used by the commissioner of finance 
249.14 	for the February and November forecasts 
249.15 	required under Minnesota Statutes, section 
249.16 	16A.103, contains expenditures under the 
249.17 	TANF/MOE rider in Laws 2005, First 
249.18 	Special Session chapter 4, article 9, section 
249.19 	2, subdivision 1, paragraph (a), clause (1), 
249.20 	equal to at least 21 percent of the total 
249.21 	required under Code of Federal Regulations, 
249.22 	title 45, section 263.1. 
249.23 	INCREASE WORKING FAMILY 
249.24 	CREDIT EXPENDITURES TO BE 
249.25 	CLAIMED FOR TANF/MOE. In addition 
249.26 	to the amounts provided in Laws 2005, First 
249.27 	Special Session chapter 4, article 9, section 2, 
249.28 	subdivision 1, the commissioner may count 
249.29 	the following amounts of working family 
249.30 	credit expenditures as TANF/MOE:
249.31 	(1) fiscal year 2006, $9,858,000;
249.32 	(2) fiscal year 2007, $0;
249.33 	(3) fiscal year 2008, $4,269,000; and
249.34 	(4) fiscal year 2009, $4,888,000.
250.1 	Notwithstanding any section in this article 
250.2 	to the contrary, this paragraph sunsets June 
250.3 	30, 2009.

250.4	(c) Children's Service Grants
	
250.5	General
	-0-
	250,000
	
250.6 	MENTAL HEALTH CRISIS 
250.7 	INFRASTRUCTURE. Of this 
250.8 	appropriation, $250,000 is from the health 
250.9 	care access fund for children's mental health 
250.10 	crisis infrastructure.
250.11 	CHILDREN'S SERVICES GRANTS 
250.12 	BASE LEVEL ADJUSTMENT. The health 
250.13 	care access fund base for children's services 
250.14 	grants shall be decreased by $250,000 for 
250.15 	fiscal year 2009.
250.16 	CHILDREN'S AND COMMUNITY 
250.17 	SERVICES GRANTS. Notwithstanding 
250.18 	Minnesota Statutes, section 256M.50, 
250.19 	supplemental social service block grant funds 
250.20 	of $153,936 appropriated under the federal 
250.21 	2005 Department of Defense Appropriations 
250.22 	Act, Public Law 109-148, shall be allocated 
250.23 	proportionately to those counties that served 
250.24 	hurricane evacuees and reported those 
250.25 	services on the Social Service Information 
250.26 	System.
250.27 	BASIC SLIDING FEE ALLOCATIONS; 
250.28 	CONVERSION TO AUTOMATED 
250.29 	PAYMENT SYSTEM. As determined by 
250.30 	the commissioner, counties may use up to six 
250.31 	percent of either calendar year 2008 or 2009 
250.32 	allocations under Minnesota Statutes, section 
250.33 	119B.03, to fund accelerated payments that 
250.34 	may occur during the preceding calendar 
251.1 	year during conversion to the automated 
251.2 	child care assistance program system. If 
251.3 	conversion occurs over two calendar years, 
251.4 	counties may use up to three percent of the 
251.5 	combined calendar year allocations to fund 
251.6 	accelerated payments. Funding advanced 
251.7 	under this paragraph shall be considered part 
251.8 	of the allocation from which it was originally 
251.9 	advanced for purposes of setting future 
251.10 	allocations under Minnesota Statutes, section 
251.11 	119B.03, subdivisions 6, 6a, 6b, and 8, and 
251.12 	shall include funding for administrative costs 
251.13 	under Minnesota Statutes, section 119B.15. 
251.14 	Notwithstanding any contrary provisions in 
251.15 	this article, this paragraph shall sunset on 
251.16 	December 31, 2009.

251.17	(d) Group Residential Housing
	
251.18	General
	-0-
	168,000
	
251.19 	MENTAL HEALTH PILOT. This 
251.20 	appropriation is for the mental health pilot 
251.21 	program for unsheltered individuals in 
251.22 	Ramsey County and Hennepin County.

251.23	(e) Other Children and Economic Assistance Grants
	
251.24	General
	(370,000)
	(461,000)
	
251.25 	MINNESOTA FOOD ASSISTANCE 
251.26 	PROGRAM. (a) The general fund 
251.27 	appropriations for the Minnesota Food 
251.28 	Assistance Program under Minnesota 
251.29 	Statutes, section 256D.053, are reduced by 
251.30 	$370,000 in fiscal year 2006 and $491,000 in 
251.31 	fiscal year 2007.
251.32 	(b) The general fund appropriation for 
251.33 	the Minnesota food assistance program is 
251.34 	increased by $30,000 in fiscal year 2007 for 
252.1 	the added program cost of the food stamp 
252.2 	asset limit changes under Minnesota Statutes, 
252.3 	section 256D.0515. The general fund base 
252.4 	for the Minnesota food assistance program is 
252.5 	increased by $61,000 in fiscal year 2008 and 
252.6 	$61,000 in fiscal year 2009.
252.7 	OTHER CHILDREN'S AND 
252.8 	ECONOMIC ASSISTANCE GRANTS 
252.9 	BASE LEVEL ADJUSTMENT. The 
252.10 	general fund base for other children's and 
252.11 	economic assistance grants shall be increased 
252.12 	by $31,000 for fiscal year 2008 and shall be 
252.13 	increased by $31,000 for fiscal year 2009.

252.14
252.15	Subd. 8.Children and Economic Assistance 
Management

252.16	Summary by Fund
	
252.17	General
	-0-
	35,000
	
252.18	Federal TANF
	-0-
	44,000
	
252.19 	FOOD STAMP ASSET LIMIT. $16,000 
252.20 	in fiscal year 2007 is appropriated from 
252.21 	the general fund to the commissioner of 
252.22 	human services for the systems cost of 
252.23 	implementing the food stamp asset limit 
252.24 	changes included under Minnesota Statutes, 
252.25 	section 256D.0515.  This is a onetime 
252.26 	appropriation. 
252.27 	DOMESTIC VIOLENCE 
252.28 	INFORMATIONAL BROCHURE.
252.29 	$44,000 in fiscal year 2007 is appropriated 
252.30 	from federal TANF funds to the 
252.31 	commissioner of human services 
252.32 	for producing the domestic violence 
252.33 	informational brochure under Minnesota 
253.1 	Statutes, section 256.029.  This appropriation 
253.2 	is added to the agency's base.
253.3 	CHILDREN AND ECONOMIC 
253.4 	ASSISTANCE OPERATIONS BASE 
253.5 	LEVEL ADJUSTMENT. The general fund 
253.6 	base for children and economic assistance 
253.7 	operations shall be decreased by $35,000 for 
253.8 	fiscal year 2008 and shall be decreased by 
253.9 	$35,000 for fiscal year 2009.

253.10	Sec. 3. COMMISSIONER OF HEALTH

253.11	Subdivision 1.Total Appropriation
 		-0-
		 6,640,000

253.12	Subd.  2.Policy Quality and Compliance

253.13	Summary by Fund

253.14
253.15	State Government Special 
Revenue
	-0-
	140,000
	
253.16	Health Care Access
	-0-
	1,500,000
	
253.17 	INJUNCTIVE RELIEF. The commissioner 
253.18 	of health  shall present to the 2007 legislature, 
253.19 	by December 15, 2006, recommendations 
253.20 	to fund the cost of bringing actions for 
253.21 	injunctive relief under Minnesota Statutes, 
253.22 	section 144G.02, subdivision 2, paragraph 
253.23 	(b).
253.24 	HEALTH INFORMATION 
253.25 	TECHNOLOGY. $1,500,000 from the 
253.26 	health care access fund is to implement 
253.27 	Minnesota Statutes, section 144.366. Up to 
253.28 	$200,000 is available for grant administration 
253.29 	and health information technology technical 
253.30 	assistance. This is a onetime appropriation.

254.1	Subd. 3.Health Protection

254.2	General
	-0-
	5,000,000
	
254.3 	PANDEMIC INFLUENZA 
254.4 	PREPAREDNESS. $5,000,000 
254.5 	from the general fund is for preparation, 
254.6 	planning, and response to an outbreak of 
254.7 	influenza. This is a onetime appropriation.

254.8
254.9	Sec. 4. VETERANS NURSING HOMES 
BOARD

254.10	General
	2,448,000
	3,790,000
	
254.11 	BASE ADJUSTMENT. The general fund 
254.12 	base is increased by $3,945,000 in fiscal year 
254.13 	2008 and $3,945,000 in fiscal year 2009 for 
254.14 	the Veterans Homes Board.
254.15 	SURPRISE INSPECTIONS. The board 
254.16 	shall contract for two mock, surprise 
254.17 	inspections during each fiscal year at the 
254.18 	Minneapolis facility. 
254.19 	QUALITY ASSURANCE. Of this 
254.20 	appropriation, $1,868,000 in fiscal year 2006 
254.21 	and $2,159,000 in fiscal year 2007 is to 
254.22 	supplement nursing staff at the Minneapolis 
254.23 	facility. The board shall negotiate with 
254.24 	state bargaining units to address wages, 
254.25 	benefits, and the staffing skill mix in order 
254.26 	to appropriately serve the acuity level of 
254.27 	residents.

254.28	Sec. 5. HEALTH-RELATED BOARDS

254.29
254.30	State Government Special 
Revenue
	514,000
	572,000

255.1	Subdivision 1.Board of Medical Practice
 		500,000
		500,000
	
255.2 	This increase is to cover higher than expected 
255.3 	costs of investigation and legal action. This 
255.4 	is a onetime appropriation.

255.5	Subd.  2.Board of Chiropractic Examiners
 		5,000
		5,000
	
255.6 	BOARD OF CHIROPRACTIC 
255.7 	EXAMINERS APPROPRIATION 
255.8 	INCREASE. This increase is to correct 
255.9 	programming difficulties incurred during 
255.10 	implementation of payment processing 
255.11 	changes. This is a onetime appropriation.

255.12	Subd.  3.Board of Dentistry
 		-0-
		67,000
	
255.13 	BOARD OF DENTISTRY 
255.14 	APPROPRIATION INCREASE.
255.15 	This increase is to retain a legal analyst as 
255.16 	part of the board staff.

255.17	Subd.  4.Board of Physical Therapy
 		9,000
		-0-
	
255.18 	BOARD OF PHYSICAL THERAPY 
255.19 	APPROPRIATION INCREASE. This 
255.20 	increase is to correct programming 
255.21 	difficulties incurred during implementation 
255.22 	of payment processing changes. This is a 
255.23 	onetime appropriation. 

255.24
255.25	Sec. 6. EMERGENCY MEDICAL 
SERVICES BOARD

255.26
255.27	State Government Special 
Revenue
	-0-
	50,000
	
255.28 	EMERGENCY MEDICAL SERVICES 
255.29 	BOARD APPROPRIATION INCREASE.
255.30 	This increase is to be spent by the health 
256.1 	professional service program from the state 
256.2 	government special revenue fund.

256.3 	Sec. 7. [256.029] DOMESTIC VIOLENCE INFORMATIONAL BROCHURE.
256.4 	(a) The commissioner shall provide a domestic violence informational brochure that 
256.5 	provides information about the existence of domestic violence waivers for eligible public 
256.6 	assistance applicants to all applicants of general assistance, general assistance medical 
256.7 	care, Minnesota family investment program, medical assistance, and MinnesotaCare. The 
256.8 	brochure must explain that eligible applicants may be temporarily waived from certain 
256.9 	program requirements due to domestic violence. The brochure must provide information 
256.10 	about services and other programs to help victims of domestic violence.
256.11 	(b) The brochure must be funded with TANF funds.

256.12 	EFFECTIVE DATE. This section is effective upon federal approval.

256.13 	Sec. 8. [256D.0515] ASSET LIMITATIONS FOR FOOD STAMP HOUSEHOLDS.
256.14 	All food stamp households must be determined eligible for the benefit discussed 
256.15 	under section 256.029. Food stamp households must demonstrate that:
256.16 	(1) their gross income meets the federal Food Stamp requirements under United 
256.17 	States Code, title 7, section 2014(c); and 
256.18 	(2) they have financial resources, excluding vehicles, of less than $7,000.

256.19 	EFFECTIVE DATE. This section is effective upon federal approval.

256.20 	Sec. 9. SUNSET OF UNCODIFIED LANGUAGE.
 256.21 	All uncodified language contained in this article expires on June 30, 2007, unless a 
256.22 	different expiration date is explicit.