1.1 	A bill for an act
1.2 	relating to the financing of state government; making supplemental 
1.3 	appropriations for education, environment and agriculture, economic 
1.4 	development, transportation, public safety, state government, and health and 
1.5 	human services; modifying certain statutory provisions and laws; providing for 
1.6 	certain programs; fixing and limiting fees; authorizing rulemaking; requiring 
1.7 	reports; providing for penalties; appropriating money; amending Minnesota 
1.8 	Statutes 2004, sections 13.6905, by adding a subdivision; 47.58, subdivision 8; 
1.9 	62A.045; 62S.05, by adding a subdivision; 62S.08, subdivision 3; 62S.081, 
1.10 	subdivision 4; 62S.10, subdivision 2; 62S.13, by adding a subdivision; 62S.14, 
1.11 	subdivision 2; 62S.15; 62S.20, subdivision 1; 62S.24, subdivisions 1, 3, 4, by 
1.12 	adding subdivisions; 62S.25, subdivision 6, by adding a subdivision; 62S.26; 
1.13 	62S.266, subdivision 2; 62S.29, subdivision 1; 62S.30; 84.0835, subdivision 
1.14 	3; 85.053, by adding a subdivision; 85.054, by adding a subdivision; 85.32, 
1.15 	subdivision 1; 97A.028, subdivision 3; 115E.01, subdivisions 5, 6, 7, 13, by 
1.16 	adding subdivisions; 115E.04, subdivision 2, by adding subdivisions; 115E.05, 
1.17 	subdivisions 1, 2; 115E.08, subdivision 3; 116J.543; 119B.011, by adding a 
1.18 	subdivision; 119B.05, subdivision 1; 119B.13, by adding a subdivision; 122A.09, 
1.19 	subdivision 4; 123B.57, subdivision 6; 124D.518, subdivision 4; 124D.52, 
1.20 	subdivision 1; 125A.27, subdivisions 3, 7, 8, 11, 15, 18; 125A.29; 125A.30; 
1.21 	125A.32; 125A.33; 125A.48; 126C.10, by adding subdivisions; 136A.101, 
1.22 	subdivisions 4, 8; 136A.15, subdivisions 6, 9; 136A.1701, subdivisions 4, 7; 
1.23 	137.17, subdivisions 1, 3; 144.6501, subdivision 6; 144A.071, subdivision 
1.24 	4c; 144A.4605; 144D.01, by adding a subdivision; 144D.015; 144D.02; 
1.25 	144D.03, subdivision 2; 144D.04; 144D.05; 144D.065; 245.465, by adding 
1.26 	a subdivision; 245.771, by adding a subdivision; 246.54, subdivision 1, by 
1.27 	adding a subdivision; 253B.02, subdivision 2; 256.01, by adding subdivisions; 
1.28 	256.975, subdivision 7; 256B.02, subdivision 9; 256B.056, subdivision 2, by 
1.29 	adding subdivisions; 256B.0595, subdivisions 1, 3, 4; 256B.0625, subdivisions 
1.30 	20, 28, by adding a subdivision; 256B.0911, subdivision 3a; 256B.0913, by 
1.31 	adding a subdivision; 256B.0945, subdivisions 1, 4; 256B.15, by adding a 
1.32 	subdivision; 256B.437, subdivision 3; 256B.69, subdivisions 5g, 5h, 9, by adding 
1.33 	a subdivision; 256B.76; 256J.01, by adding a subdivision; 256J.02, subdivision 
1.34 	1; 256J.021; 256J.08, subdivision 65; 256J.37, subdivision 3a; 256J.521, 
1.35 	subdivisions 1, 2; 256J.53, subdivision 2, by adding a subdivision; 256J.626, 
1.36 	subdivisions 1, 2, 3, 4, 5; 256L.03, subdivision 3; 256L.04, subdivisions 7, 
1.37 	10, by adding a subdivision; 256L.07, subdivision 2; 256L.11, subdivision 
1.38 	1, by adding subdivisions; 256L.12, subdivision 9a; 256L.15, subdivision 1; 
2.1 	259.87; 326.105; 462A.05, by adding a subdivision; 488A.03, subdivisions 6, 11; 
2.2 	518.551, subdivision 7; Minnesota Statutes 2005 Supplement, sections 35.05; 
2.3 	85.053, subdivision 2; 85.055, subdivision 1; 116J.551, subdivision 1; 119B.13, 
2.4 	subdivision 1; 121A.19; 124D.111, subdivision 1; 124D.135, subdivision 
2.5 	1; 124D.175; 124D.531, subdivision 1; 125A.28; 126C.10, subdivision 31; 
2.6 	136A.121, subdivision 7a; 245.4874; 256B.0571; 256B.0595, subdivision 2; 
2.7 	256B.06, subdivision 4; 256B.0625, subdivision 1a; 256B.075, subdivision 
2.8 	2; 256B.0911, subdivision 1a; 256B.0918, subdivisions 1, 3, 4; 256B.0946, 
2.9 	subdivision 1; 256B.434, subdivision 4; 256B.69, subdivision 23; 256D.03, 
2.10 	subdivisions 3, 4; 256J.626, subdivision 6; 256L.01, subdivision 4; 256L.03, 
2.11 	subdivisions 1, 5; 256L.035; 256L.04, subdivision 1a; 256L.07, subdivisions 1, 
2.12 	3; 256L.15, subdivision 2; 299A.78;  Laws 2005, chapter 136, article 1, section 
2.13 	10; Laws 2005, First Special Session chapter 1, article 2, section 3, subdivision 
2.14 	2; article 3, section 2, subdivision 4; Laws 2005, First Special Session chapter 4, 
2.15 	article 9, sections 3, subdivision 2; 5, subdivision 8; Laws 2005, First Special 
2.16 	Session chapter 5, article 1, sections 47; 54, subdivisions 2, 3, 5, 6, 7, 8; article 
2.17 	2, section 84, subdivisions 2, 3, 4, 6, 7, 10; article 3, section 18, subdivisions 2, 
2.18 	3, 4, 5, 6, 7; article 4, section 25, subdivisions 2, 3, 4, 6; article 5, section 17, 
2.19 	subdivisions 2, 3; article 6, section 1, subdivisions 2, 3, 5; article 7, section 20, 
2.20 	subdivisions 2, 3, 4; article 8, section 8, subdivisions 2, 3, 5; article 9, section 4, 
2.21 	subdivision 2; article 10, section 5, subdivision 2; proposing coding for new law 
2.22 	in Minnesota Statutes, chapters 3; 16E; 43A; 62S; 85; 115E; 116J; 122A; 124D; 
2.23 	144; 144A; 144D; 245; 254A; 256; 256B; 256D; 256J; 256L; 259; 299A; 341; 
2.24 	proposing coding for new law as Minnesota Statutes, chapter 144G; repealing 
2.25 	Minnesota Statutes 2004, sections 62J.694, subdivision 5; 137.17, subdivisions 
2.26 	2, 4; 245.465, subdivision 2; 256B.0945, subdivisions 5, 6, 7, 8, 9; 256B.83; 
2.27 	256J.626, subdivision 9; 488A.03, subdivision 11b; Minnesota Statutes 2005 
2.28 	Supplement, sections 119B.13, subdivision 7; 256B.0571, subdivisions 2, 5, 11; 
2.29 	256J.626, subdivision 7; 256L.035; Laws 2003, First Special Session chapter 14, 
2.30 	article 9, section 36; Minnesota Rules, part 4668.0215.
2.31 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.32 	 ARTICLE 1
2.33 	 SUMMARY

2.34	Section 1. APPROPRIATIONS SUMMARY.

								
2.35	(General Fund Only, Excluding Forecast Adjustments)
	
2.36	APPROPRIATIONS
		2006
		2007
		TOTAL
	
2.37	Early Childhood Education 
	$
	124,000
	$
	23,294,000
	$
	23,418,000
	
2.38	K-12 Education
		463,000
		34,437,000
		34,900,000
	
2.39	Higher Education
				4,700,000
		4,700,000
	
2.40	Environment & Agriculture
		523,000
		2,363,000
		2,886,000
	
2.41	Clean Water Legacy
				20,000,000
		20,000,000
	
2.42	Economic Development 
		1,750,000
		2,850,000
		4,600,000
	
2.43	Transportation
				4,320,000
		4,320,000
	
3.1	Public Safety
		3,562,000
		6,650,000
		10,212,000
	
3.2	State Government 
		4,250,000
		5,057,000
		9,307,000
	
3.3	Health and Human Services
		26,673,000
		66,463,000
		93,136,000
	
3.4	SUBTOTAL
	$
	37,345,000
	$
	170,134,000
	$
	207,479,000
	
3.5	TRANSFERS IN
		2,933,000
		900,000
		3,833,000
	
3.6	TOTAL
	$
	34,412,000
	$
	169,234,000
	$
	203,646,000

3.7 	ARTICLE 2
3.8 	EARLY CHILDHOOD EDUCATION

3.9 	Section 1. EARLY EDUCATION APPROPRIATIONS.
 3.10 		Subdivision 1.Summary
 
3.11	SUMMARY BY FUND
	
3.12			2006
		2007
		TOTAL
	
3.13	General
	$
	124,000
	$
	23,294,000
	$
	23,418,000
	
3.14	TANF
		-0-
		1,475,000
		1,475,000
	
3.15	TOTAL
	$
	124,000
	$
	24,769,000
	$
	24,893,000

3.16
3.17	Subd.  2.Department of Human Services; 
basic sliding fee child care waiting list
 					
3.18 	(a) For child care assistance for eligible 
3.19 	families on the basic sliding fee waiting list 
3.20 	under Minnesota Statutes, section 119B.03, 
3.21 	subdivision 2, as of July 1, 2006.

3.22	Summary by Fund
	
3.23	General Fund
	-0-
	2,672,000
	
3.24	TANF
	-0-
	1,475,000
	
3.25	TOTAL
	-0-
	4,147,000
	
3.26 	The TANF appropriation is a onetime 
3.27 	appropriation for fiscal year 2007 only. The 
3.28 	general fund base for the basic sliding fee 
4.1 	program is increased by $4,147,000 in fiscal 
4.2 	years 2008 and 2009.

4.3
4.4	(b) For basic sliding fee child care assistance 
grants in fiscal year 2007
		-0-
		9,603,000
	
4.5 	The general fund base is increased by 
4.6 	$13,348,000 in fiscal year 2008 and 
4.7 	$13,607,000 in fiscal year 2009 for basic 
4.8 	sliding fee child care assistance grants.

4.94.10
4.11
	(c) For the state share of systems cost to 
implement the provider rate differential for 
accreditation
		-0-
		3,000
	
4.12 	(d) As determined by the commissioner, 
4.13 	counties may use up to six percent of either 
4.14 	calendar year 2008 or 2009 allocations under 
4.15 	Minnesota Statutes, section 119B.03, to 
4.16 	fund accelerated payments that may occur 
4.17 	during the preceding calendar year during 
4.18 	conversion to the automated child care 
4.19 	assistance program system. If conversion 
4.20 	occurs over two calendar years, counties 
4.21 	may use up to three percent of the combined 
4.22 	calendar year allocations to fund accelerated 
4.23 	payments. Funding advanced under this 
4.24 	subdivision shall be considered part of the 
4.25 	allocation from which it was originally 
4.26 	advanced for purposes of setting future 
4.27 	allocations under Minnesota Statutes, section 
4.28 	119B.03, subdivisions 6, 6a, 6b, and 8, and 
4.29 	shall include funding for administrative costs 
4.30 	under Minnesota Statutes, section 119B.15. 
4.31 	Notwithstanding the provisions of any 
4.32 	section to the contrary, this provision shall 
4.33 	sunset December 31, 2009.

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 increased by 1.75 percent except that in counties where the maximum rate is 
5.18 	set at the 100th percentile on January 1, 2006, as published in Policy Bulletin 05-68-15, 
5.19 	the maximum rate shall continue to be set at the 100th percentile.
5.20 	(iv) (b) Rate changes shall be implemented for services provided in March 
5.21 	 September 2006 unless a participant eligibility redetermination or a new provider 
5.22 	agreement is completed between JanuaryJuly 1, 2006, and February 28 August 31, 2006.
5.23 	As necessary, appropriate notice of adverse action must be made according to 
5.24 	Minnesota Rules, part 3400.0185, subparts 3 and 4.
5.25 	New cases approved on or after JanuaryJuly 1, 2006, shall have the maximum rates 
5.26 	under item (iii)paragraph (a), implemented immediately.
5.27 	(b)(c) Not less than once every two years, the commissioner shall survey rates 
5.28 	charged by child care providers in Minnesota to determine the 75th percentile for 
5.29 	like-care arrangements in counties. When the commissioner determines that, using the 
5.30 	commissioner's established protocol, the number of providers responding to the survey is 
5.31 	too small to determine the 75th percentile rate for like-care arrangements in a county or 
5.32 	multicounty region, the commissioner may establish the 75th percentile maximum rate 
5.33 	based on like-care arrangements in a county, region, or category that the commissioner 
5.34 	deems to be similar.
5.35 	(c)(d) A rate which includes a special needs rate paid under subdivision 3 may be in 
5.36 	excess of the maximum rate allowed under this subdivision.
6.1 	(d)(e) The department shall monitor the effect of this paragraph on provider rates. 
6.2 	The county shall pay the provider's full charges for every child in care up to the maximum 
6.3 	established. The commissioner shall determine the maximum rate for each type of care on 
6.4 	an hourly, full-day, and weekly basis, including special needs and handicapped care. The 
6.5 	commissioner shall also determine the maximum rate for school age care on a half-day 
6.6 	basis.
6.7 	(e)(f) When the provider charge is greater than the maximum provider rate allowed, 
6.8 	the parent is responsible for payment of the difference in the rates in addition to any 
6.9 	family co-payment fee.

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

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

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

6.29 	Sec. 4. Minnesota Statutes 2005 Supplement, section 121A.19, is amended to read:
6.30 	121A.19 DEVELOPMENTAL SCREENING AID.
6.31 	Each school year, the state must pay a district $50 for each three-year-old child 
6.32 	screened; $40 for each four-year-old child screened; and $30 for each five-year-old child
6.33 	or student screened by the district prior to kindergarten according to the requirements of 
7.1 	section 121A.17. The amount of state aid for each child or student screened shall be: (1) 
7.2 	$50 for a child screened at age three; (2) $40 for a child screened at age four; (3) $30 
7.3 	for a child screened at age five or six prior to kindergarten; and (4) $30 for a student 
7.4 	screened within 30 days after first enrolling in a public school kindergarten if the student 
7.5 	has not previously been screened according to the requirements of section 121A.17. If this 
7.6 	amount of aid is insufficient, the district may permanently transfer from the general fund 
7.7 	an amount that, when added to the aid, is sufficient. Developmental screening aid shall not 
7.8 	be paid for any student who is screened more than 30 days after the first day of attendance 
7.9 	at a public school kindergarten, except if a student transfers to another public school 
7.10 	kindergarten within 30 days after first enrolling in a Minnesota public school kindergarten 
7.11 	program. In this case, if the student has not been screened, the district to which the student 
7.12 	transfers may receive developmental screening aid for screening that student when the 
7.13 	screening is performed within 30 days of the transfer date.

7.14 	Sec. 5. [124D.129] EDUCATE PARENTS PARTNERSHIP.
7.15 	The commissioner must work in partnership with health care providers and 
7.16 	community organizations to provide parent education information to parents of newborns 
7.17 	at the time of birth. The commissioner must coordinate the partnership and the distribution 
7.18 	of informational material to the parents of newborns before they leave the hospital with 
7.19 	early childhood organizations, including, but not limited to, early childhood family 
7.20 	education, child care resource and referral, and interagency early intervention committees. 
7.21 	The commissioner must develop a resource Web site that promotes, at a minimum, the 
7.22 	department Web site for information and links to resources on child development, parent 
7.23 	education, child care, and consumer safety information. 

7.24 	Sec. 6. Minnesota Statutes 2005 Supplement, section 124D.135, subdivision 1, is 
7.25 	amended to read:
7.26 		Subdivision 1.Revenue. The revenue for early childhood family education 
7.27 	programs for a school district equals $96 for fiscal year 2005 and $104 $120 for fiscal year 
7.28 	2006 2007 and later, times the greater of:
7.29 	(1) 150; or
7.30 	(2) the number of people under five years of age residing in the district on October 1 
7.31 	of the previous school year.

7.32 	Sec. 7. [124D.136] KINDERGARTEN ENTRANCE ASSESSMENT INITIATIVE; 
7.33 	INTERVENTION PROGRAM.
 8.1 		Subdivision 1.Kindergarten entrance assessment initiative. (a) The 
8.2 	commissioner of education shall establish a method for assessing the school readiness of 
8.3 	children entering kindergarten, building on the two school readiness studies conducted by 
8.4 	the Department of Education in 2002 and 2003.
8.5 	(b) Over a three-year period, school sites may implement the kindergarten entrance 
8.6 	assessment initiative based on the school rank under section 124D.081, starting with 
8.7 	the school sites with the highest rank. Under section 124D.081, the commissioner of 
8.8 	education ranks all school sites based on the incidence of free and reduced lunch. The 
8.9 	school sites with the highest incidence of free and reduced lunch receive the highest rank. 
8.10 	The schedule for implementation is as follows:
8.11 	(1) fiscal year 2008, 30 percent of children entering kindergarten;
8.12 	(2) fiscal year 2009, 50 percent of children entering kindergarten; and
8.13 	(3) fiscal year 2010, 100 percent of children entering kindergarten.
8.14 		Subd. 2.Intervention program. A school site that participates in the kindergarten 
8.15 	entrance assessment initiative under subdivision 1 must work with the school district and 
8.16 	other community partners to establish a kindergarten readiness intervention program to 
8.17 	provide additional instruction to children who are assessed and identified as being not 
8.18 	yet ready for kindergarten. A school site that participates in the kindergarten entrance 
8.19 	assessment initiative under subdivision 1 must complete the requirements of this section 
8.20 	within available K-12 funding sources. Each child will have a locally determined 
8.21 	intervention strategy focusing the curriculum content on the individualized needs of that 
8.22 	child. The commissioner, at a district's request, must assist the district and the school to 
8.23 	develop the intervention program. At the end of the kindergarten school year, the district 
8.24 	must reassess each child who receives an intervention to evaluate the progress of the child 
8.25 	over the kindergarten year and the success of the intervention strategy developed for that 
8.26 	child. The district must report the results of the intervention and year-end assessment to 
8.27 	the commissioner.
8.28 		Subd. 3.Report to legislature. The commissioner shall report annually to the 
8.29 	senate and house of representatives committees having jurisdiction over early childhood 
8.30 	education on the results of the kindergarten entrance assessment initiative, and the results 
8.31 	of the intervention program.

8.32 	Sec. 8. Minnesota Statutes 2005 Supplement, section 124D.175, is amended to read:
8.33 	124D.175 MINNESOTA EARLY LEARNING FOUNDATION PROPOSAL.
8.34 	(a) The commissioner must implement an early childhood development grant 
8.35 	program for low-income and other challenged families that increases the effectiveness 
9.1 	and expands the capacity of public and nonpublic early childhood development programs, 
9.2 	which may include child care programs, and leads to improved early childhood parent 
9.3 	education and children's kindergarten readiness. The program must include:
9.4 	(1) grant awards to existing early childhood development program providers that 
9.5 	also provide parent education programs and to qualified providers proposing to implement 
9.6 	pilot programs for this same purpose;
9.7 	(2) grant awards to enable low-income families to participate in these programs;
9.8 	(3) grant awards to improve overall programmatic quality; and
9.9 	(4) an evaluation of the programmatic and financial efficacy of all these programs, 
9.10 	which may be performed using measures of services, staffing, and management systems 
9.11 	that provide consistent information about system performance, show trends, confirm 
9.12 	successes, and identify potential problems in early childhood development programs.
9.13 	This grant program must not supplant existing early childhood development programs 
9.14 	or child care funds.
9.15 	(b) The commissioner must contract with  a private nonprofit, section 501(c)(3) 
9.16 	organization to implement the requirements of paragraph (a).  The private nonprofit 
9.17 	organization must be governed by a board of directors composed of members from the 
9.18 	public and nonpublic sectors, where the nonpublic sector members compose a simple 
9.19 	majority of board members and where the public sector members are state and local 
9.20 	government officials, kindergarten through grade 12 or postsecondary educators, and early 
9.21 	childhood providers appointed by the governor. Membership on the board of directors 
9.22 	by a state agency official are work duties for the official and are not a conflict of interest 
9.23 	under section 43A.38. The board of directors must appoint an executive director and must 
9.24 	seek advice from geographically and ethnically diverse parents of young children and 
9.25 	representatives of early childhood development providers, kindergarten through grade 12 
9.26 	and postsecondary educators, public libraries, and the business sector.
9.27 	 The board of directors is subject to the open meeting law under chapter 13D. 
9.28 	All other terms and conditions under which board members serve and operate must be 
9.29 	described in the articles and bylaws of the organization. The private nonprofit organization 
9.30 	is not a state agency and is not subject to laws governing public agencies except the 
9.31 	provisions of chapter 13, salary limits under section 15A.0815, subdivision 2, and audits 
9.32 	by the legislative auditor under chapter 3 apply.
9.33 	(c) In addition to the duties under paragraph (a), the Minnesota Early Learning 
9.34 	Foundation (MELF) shall evaluate the effectiveness of the voluntary NorthStar Quality 
9.35 	Improvement and Rating System. The NorthStar Quality Improvement and Rating System 
9.36 	must:
10.1 	(1) provide consumer information for parents on child care and early education 
10.2 	program quality and ratings;
10.3 	(2) set indicators to identify quality in care and early education settings, including 
10.4 	licensed family child care and centers, tribal providers and programs, Head Start and 
10.5 	school-age programs, and identify quality programs through ratings and ongoing 
10.6 	monitoring of programs;
10.7 	(3) provide funds for provider improvement grants and quality achievement grants;
10.8 	(4) require participating providers to incorporate the state's early learning standards 
10.9 	in their curriculum activities and develop appropriate child assessments aligned with the 
10.10 	kindergarten readiness assessment;
10.11 	(5) provide accountability for the NorthStar Quality Improvement and Rating 
10.12 	System's effectiveness in improving child outcomes and kindergarten readiness; and
10.13 	(6) align current and new state investments to improve the quality of child care 
10.14 	with the NorthStar Quality Improvement and Rating System framework, by providing 
10.15 	accountability and informed parent choice.
10.16 	The Minnesota Early Learning Foundation shall report back to the legislature by 
10.17 	January 15, 2008, on the progress being made under this paragraph.
10.18 	(d) The MELF shall convene a workgroup to analyze barriers to Head Start/child 
10.19 	care partnerships, and to develop recommendations for cost-effective strategies to help 
10.20 	Head Start and child care providers develop partnerships to offer full-day, full-year 
10.21 	services to at-risk children who qualify for Head Start and child care assistance.
10.22 	(1) The workgroup must include representatives from each of the following groups:
10.23 	(i) state agency staff administering child care and Head Start programs;
10.24 	(ii) local Head Start programs and child care providers working in partnership;
10.25 	(iii) statewide organizations representing Head Start programs and child care 
10.26 	providers;
10.27 	(iv) county agencies administering child care assistance and Minnesota 
10.28 	family-investment programs; and
10.29 	(v) participants and others who are eligible for Head Start and child care assistance 
10.30 	programs.
10.31 	(2) A report outlining the workgroup's recommendations must be provided to the 
10.32 	senate and house of representatives committees having jurisdiction over child care and 
10.33 	Head Start issues by January 15, 2007.
10.34 	(e) This section expires June 30, 2011. If no state appropriation is made for purposes 
10.35 	of this section, the commissioner must not implement paragraphs (a) and (b).

11.1 	Sec. 9. Minnesota Statutes 2004, section 124D.518, subdivision 4, is amended to read:
11.2 		Subd. 4.First prior program year. "First prior program year" means the period 
11.3 	from May 1 of the second prior fiscal year through April 30 of the first prior fiscal year
11.4 	specific time period defined by the commissioner that aligns to a program academic year.

11.5 	Sec. 10. Minnesota Statutes 2004, section 124D.52, subdivision 1, is amended to read:
11.6 		Subdivision 1.Program requirements. (a) An adult basic education program is a 
11.7 	day or evening program offered by a district that is for people over 16 years of age who do 
11.8 	not attend an elementary or secondary school. The program offers academic instruction 
11.9 	necessary to earn a high school diploma or equivalency certificate.
11.10 	(b) Notwithstanding any law to the contrary, a school board or the governing body of 
11.11 	a consortium offering an adult basic education program may adopt a sliding fee schedule 
11.12 	based on a family's income, but must waive the fee for participants who are under the 
11.13 	age of 21 or unable to pay. The fees charged must be designed to enable individuals of 
11.14 	all socioeconomic levels to participate in the program. A program may charge a security 
11.15 	deposit to assure return of materials, supplies, and equipment.
11.16 	(c) Each approved adult basic education program must develop a memorandum of 
11.17 	understanding with the local workforce development centers located in the approved 
11.18 	program's service delivery area. The memorandum of understanding must describe how 
11.19 	the adult basic education program and the workforce development centers will cooperate 
11.20 	and coordinate services to provide unduplicated, efficient, and effective services to clients.
11.21 	(d) Adult basic education aid must be spent for adult basic education purposes as 
11.22 	specified in sections  124D.518 to  124D.531. 
11.23 	(e) A state-approved adult basic education program must count and submit student 
11.24 	contact hours for a program that offers high school credit toward an adult high school 
11.25 	diploma according to student eligibility requirements and competency demonstration 
11.26 	requirements established by the commissioner.

11.27 	Sec. 11. Minnesota Statutes 2005 Supplement, section 124D.531, subdivision 1, 
11.28 	is amended to read:
11.29 		Subdivision 1.State total adult basic education aid. (a) The state total adult basic 
11.30 	education aid for fiscal year 2005 is $36,509,000. The state total adult basic education aid 
11.31 	for fiscal year 2006 and later is $36,509,000 equals $36,587,000 plus any amount that is 
11.32 	not paid for during the previous fiscal year, as a result of adjustments under subdivision 4, 
11.33 	paragraph (a), or section 124D.52, subdivision 3. The state total adult basic education 
11.34 	aid for fiscal year 2007 equals $37,673,000 plus any amount that is not paid for during 
12.1 	the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or 
12.2 	section 124D.52, subdivision 3. The state total adult basic education aid for later fiscal 
12.3 	years equals:
12.4 	(1) the state total adult basic education aid for the preceding fiscal year plus any 
12.5 	amount that is not paid for during the previous fiscal year, as a result of adjustments under 
12.6 	subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
12.7 	(2) the lesser of:
12.8 	(i) 1.03; or
12.9 	(ii) the greater of 1.00 or the ratio of the state total contact hours in the first prior 
12.10 	program year to the state total contact hours in the second prior program year.
12.11 	Beginning in fiscal year 2002, two percent of the state total adult basic education 
12.12 	aid must be set aside for adult basic education supplemental service grants under section 
12.13 	124D.522.
12.14 	(b) The state total adult basic education aid, excluding basic population aid, equals 
12.15 	the difference between the amount computed in paragraph (a), and the state total basic 
12.16 	population aid under subdivision 2.

12.17 	Sec. 12. Minnesota Statutes 2004, section 125A.27, subdivision 3, is amended to read:
12.18 		Subd. 3.Core early intervention services. "Core early intervention services" 
12.19 	means services that are available at no cost to children and families. These services 
12.20 	include:
12.21 	(1) identification and referral;
12.22 	(2) screening;
12.23 	(3) evaluation;
12.24 	(4) assessment;
12.25 	(5) service coordination;
12.26 	(6) special education and related services provided under section  125A.08, and 
12.27 	United States Code, title 20, section 1401 for children who qualify for these services 
12.28 	under Minnesota Rules; and 
12.29 	(7) protection of parent and child rights by means of procedural safeguards.

12.30 	Sec. 13. Minnesota Statutes 2004, section 125A.27, subdivision 7, is amended to read:
12.31 		Subd. 7.Early intervention system. "Early intervention system" means the total 
12.32 	effort in the state to meet the needs of eligible children and their families, including, 
12.33 	but not limited to:
13.1 	(1) any public agency in the state that receives funds under the Individuals with 
13.2 	Disabilities Education Act, United States Code, title 20, sections 1471 to 1485 (Part 
13.3 	C, Public Law 102-119);
13.4 	(2) other state and local agencies administering programs involved in the provision 
13.5 	of early intervention services, including, but not limited to:
13.6 	(i) the Maternal and Child Health program under title V of the Social Security Act, 
13.7 	United States Code, title 42, sections 701 to 709;
13.8 	(ii) the Individuals with Disabilities Education Act, United States Code, title 20, 
13.9 	sections 1411 to 1420 (Part B);
13.10 	(iii) medical assistance under the Social Security Act, United States Code, title 
13.11 	42, section 1396 et seq.;
13.12 	(iv) the Developmental Disabilities Assistance and Bill of Rights Act, United States 
13.13 	Code, title 42, sections 6021 to 6030 (Part B); and
13.14 	(v) the Head Start Act, United States Code, title 42, sections 9831 to 9852; and
13.15 	(3) services provided by private groups or third-party payers in conformity with an 
13.16 	individualized family service plan.

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

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

13.30 	Sec. 16. Minnesota Statutes 2004, section 125A.27, subdivision 15, is amended to read:
13.31 		Subd. 15.Part C state plan. "Part C state plan" means the annual state plan 
13.32 	application approved by the federal government under the Individuals with Disabilities 
14.1 	Education Act, United States Code, title 20, section 1471 et seq. (Part C, Public Law 
14.2 	105-117).

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

14.8 	Sec. 18. Minnesota Statutes 2005 Supplement, section 125A.28, is amended to read:
14.9 	125A.28 STATE INTERAGENCY COORDINATING COUNCIL.
14.10 	An Interagency Coordinating Council of at least 17, but not more than 25 members 
14.11 	is established, in compliance with Public Law 102-119 108-446, section 682 641. The 
14.12 	members must be appointed by the governor. Council members must elect the council 
14.13 	chair. The representative of the commissioner may not serve as the chair. The council 
14.14 	must be composed of at least five parents, including persons of color, of children with 
14.15 	disabilities under age 12, including at least three parents of a child with a disability 
14.16 	under age seven, five representatives of public or private providers of services for 
14.17 	children with disabilities under age five, including a special education director, county 
14.18 	social service director, local Head Start director, and a community health services or 
14.19 	public health nursing administrator, one member of the senate, one member of the 
14.20 	house of representatives, one representative of teacher preparation programs in early 
14.21 	childhood-special education or other preparation programs in early childhood intervention, 
14.22 	at least one representative of advocacy organizations for children with disabilities under 
14.23 	age five, one physician who cares for young children with special health care needs, one 
14.24 	representative each from the commissioners of commerce, education, health, human 
14.25 	services, a representative from the state agency responsible for child care, foster care, 
14.26 	mental health, homeless coordinator of education of homeless children and youth, and a 
14.27 	representative from Indian health services or a tribal council. Section 15.059, subdivisions 
14.28 	2 to 5, apply to the council. The council must meet at least quarterly.
14.29 	The council must address methods of implementing the state policy of developing 
14.30 	and implementing comprehensive, coordinated, multidisciplinary interagency programs of 
14.31 	early intervention services for children with disabilities and their families.
14.32 	The duties of the council include recommending policies to ensure a comprehensive 
14.33 	and coordinated system of all state and local agency services for children under age five 
14.34 	with disabilities and their families. The policies must address how to incorporate each 
15.1 	agency's services into a unified state and local system of multidisciplinary assessment 
15.2 	practices, individual intervention plans, comprehensive systems to find children in need of 
15.3 	services, methods to improve public awareness, and assistance in determining the role of 
15.4 	interagency early intervention committees.
15.5 	On the date that Minnesota Part C Annual Performance Report is submitted to the 
15.6 	federal Office of Special Education, the council must recommend to the governor and the 
15.7 	commissioners of education, health, human services, commerce, and employment and 
15.8 	economic development policies for a comprehensive and coordinated system.
15.9 	Notwithstanding any other law to the contrary, the State Interagency Coordinating 
15.10 	Council expires on June 30, 2009.

15.11 	Sec. 19. Minnesota Statutes 2004, section 125A.29, is amended to read:
15.12 	125A.29 RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL 
15.13 	BOARDS.
15.14 	(a) It is the joint responsibility of county boards and school boards to coordinate, 
15.15 	provide, and pay for appropriate services, and to facilitate payment for services from public 
15.16 	and private sources. Appropriate services for children eligible under section  125A.02 must 
15.17 	be determined in consultation with parents, physicians, and other educational, medical, 
15.18 	health, and human services providers. The services provided must be in conformity with:
15.19 	(1)  an IFSP for each eligible infant and toddler from birth through age two and its
15.20 	the infant's or toddler's  family, including:
15.21 	(i) Indian infants and toddlers with disabilities and their families residing on a 
15.22 	reservation geographically located in the state;
15.23 	(ii) infants and toddlers with disabilities who are homeless children and their 
15.24 	families; and
15.25 	(iii) infants and toddlers with disabilities who are wards of the state;  or 
15.26 	(2) an individual education plan (IEP) or individual service plan (ISP) for each 
15.27 	eligible child ages three through four. 
15.28 	(b) Appropriate services include family education and counseling, home visits, 
15.29 	occupational and physical therapy, speech pathology, audiology, psychological services, 
15.30 	special instruction, nursing, respite, nutrition, assistive technology, transportation 
15.31 	and related costs, social work, vision services, case management including service 
15.32 	coordination under section  125A.33, medical services for diagnostic and evaluation 
15.33 	purposes, early identification, and screening, assessment, and health services necessary to 
15.34 	enable children with disabilities to benefit from early intervention services. 
16.1 	(c) School and county boards shall coordinate early intervention services. In the 
16.2 	absence of agreements established according to section  125A.39, service responsibilities 
16.3 	for children birth through age two are as follows: 
16.4 	(1) school boards must provide, pay for, and facilitate payment for special education 
16.5 	and related services required under sections  125A.05 and  125A.06; 
16.6 	(2) county boards must provide, pay for, and facilitate payment for noneducational 
16.7 	services of social work, psychology, transportation and related costs, nursing, respite, and 
16.8 	nutrition services not required under clause (1).
16.9 	(d) School and county boards may develop an interagency agreement according 
16.10 	to section  125A.39 to establish agency responsibility that assures early intervention 
16.11 	services are coordinated, provided, paid for, and that payment is facilitated from public 
16.12 	and private sources. 
16.13 	(e) County and school boards must jointly determine the primary agency in this 
16.14 	cooperative effort and must notify the commissioner of the state lead agency of their 
16.15 	decision.

16.16 	Sec. 20. Minnesota Statutes 2004, section 125A.30, is amended to read:
16.17 	125A.30 INTERAGENCY EARLY INTERVENTION COMMITTEES.
16.18 	(a) A school district, group of districts, or special education cooperative, in 
16.19 	cooperation with the health and human service agencies located in the county or counties 
16.20 	in which the district or cooperative is located, must establish an Interagency Early 
16.21 	Intervention Committee for children with disabilities under age five and their families 
16.22 	under this section, and for children with disabilities ages three to 22 consistent with 
16.23 	the requirements under sections  125A.023 and  125A.027. Committees must include 
16.24 	representatives of local health, education, and county human service agencies, county 
16.25 	boards, school boards, early childhood family education programs, Head Start, parents of 
16.26 	young children with disabilities under age 12, child care resource and referral agencies, 
16.27 	school readiness programs, current service providers, and may also include representatives 
16.28 	from other private or public agencies and school nurses. The committee must elect a chair 
16.29 	from among its members and must meet at least quarterly. 
16.30 	(b) The committee must develop and implement interagency policies and procedures 
16.31 	concerning the following ongoing duties:
16.32 	(1) develop public awareness systems designed to inform potential recipient 
16.33 	families, especially parents with premature infants, or infants with other physical risk 
16.34 	factors associated with learning or development complications,  of available programs 
16.35 	and services;
17.1 	(2) implement interagency child find systems designed to actively seek out, identify, 
17.2 	and refer infants and young children with, or at risk of, disabilities, including a child 
17.3 	under the age of three who: (i) is involved in a substantiated case of abuse or neglect or 
17.4 	(ii) is identified as affected by illegal substance abuse, or withdrawal symptoms resulting 
17.5 	from prenatal drug exposure, to reduce the need for future services;  and their families, 
17.6 	especially parents with premature infants, or infants with other physical risk factors 
17.7 	associated with learning or development complications;
17.8 	(3) establish and evaluate the identification, referral, child and family assessment 
17.9 	systems, procedural safeguard process, and community learning systems to recommend, 
17.10 	where necessary, alterations and improvements;
17.11 	(4) assure the development of individualized family service plans for all eligible 
17.12 	infants and toddlers with disabilities from birth through age two, and their families, and 
17.13 	individual education plans and individual service plans when necessary to appropriately 
17.14 	serve children with disabilities, age three and older, and their families and recommend 
17.15 	assignment of financial responsibilities to the appropriate agencies;
17.16 	(5) encourage agencies to develop individual family service plans for children with 
17.17 	disabilities, age three and older;
17.18 	(6) implement a process for assuring that services involve cooperating agencies at all 
17.19 	steps leading to individualized programs;
17.20 	(7) (6) facilitate the development of a transitional plan if a service provider is not 
17.21 	recommended to continue to provide services;
17.22 	(8) (7) identify the current services and funding being provided within the 
17.23 	community for children with disabilities under age five and their families;
17.24 	(9) (8) develop a plan for the allocation and expenditure of additional state and 
17.25 	federal early intervention funds under United States Code, title 20, section 1471 et seq. 
17.26 	(Part C, Public Law 102-119 108-446) and United States Code, title 20, section 631, et 
17.27 	seq. (Chapter I, Public Law 89-313); and
17.28 	(10) (9) develop a policy that is consistent with section  13.05, subdivision 9, and 
17.29 	federal law to enable a member of an interagency early intervention committee to allow 
17.30 	another member access to data classified as not public. 
17.31 	(c) The local committee shall also:
17.32 	(1) participate in needs assessments and program planning activities conducted by 
17.33 	local social service, health and education agencies for young children with disabilities and 
17.34 	their families; and
17.35 	(2) review and comment on the early intervention section of the total special 
17.36 	education system for the district, the county social service plan, the section or sections of 
18.1 	the community health services plan that address needs of and service activities targeted 
18.2 	to children with special health care needs, the section on children with special needs in 
18.3 	the county child care fund plan, sections in Head Start plans on coordinated planning and 
18.4 	services for children with special needs, any relevant portions of early childhood education 
18.5 	plans, such as early childhood family education or school readiness, or other applicable 
18.6 	coordinated school and community plans for early childhood programs and services, and 
18.7 	the section of the maternal and child health special project grants that address needs of and 
18.8 	service activities targeted to children with chronic illness and disabilities.

18.9 	Sec. 21. Minnesota Statutes 2004, section 125A.32, is amended to read:
18.10 	125A.32 INDIVIDUALIZED FAMILY SERVICE PLAN (IFSP).
18.11 	(a) A team must participate in IFSP meetings to develop the IFSP. The team shall 
18.12 	include:
18.13 	(1) a parent or parents of the child;
18.14 	(2) other family members, as requested by the parent, if feasible to do so;
18.15 	(3) an advocate or person outside of the family, if the parent requests that the 
18.16 	person participate;
18.17 	(4) the service coordinator who has been working with the family since the 
18.18 	initial referral, or who has been designated by the public agency to be responsible for 
18.19 	implementation of the IFSP and coordination with other agencies including transition 
18.20 	services; and
18.21 	(5) a person or persons involved in conducting evaluations and assessments.
18.22 	(b) The IFSP must include:
18.23 	(1) information about the child's developmental status;
18.24 	(2) family information, with the consent of the family;
18.25 	(3) measurable results or major outcomes expected to be achieved by the child and 
18.26 	the family that include preliteracy and language skills, as developmentally appropriate 
18.27 	for the child, and the criteria, procedures, and timelines;
18.28 	(4) specific early intervention services based on peer-reviewed research, to the 
18.29 	extent practicable, necessary to meet the unique needs of the child and the family to 
18.30 	achieve the outcomes;
18.31 	(5) payment arrangements, if any;
18.32 	(6) medical and other services that the child needs, but that are not required under 
18.33 	the Individual with Disabilities Education Act, United States Code, title 20, section 1471 
18.34 	et seq. (Part C, Public Law 102-119 108-446) including funding sources to be used in 
19.1 	paying for those services and the steps that will be taken to secure those services through 
19.2 	public or private sources;
19.3 	(7) dates and duration of early intervention services;
19.4 	(8) name of the service coordinator;
19.5 	(9) steps to be taken to support a child's transition from early intervention services to 
19.6 	other appropriate services, including convening a transition conference at least 90 days or, 
19.7 	at the discretion of all parties, not more than nine months prior to the child's eligibility for 
19.8 	preschool services; and
19.9 	(10) signature of the parent and authorized signatures of the agencies responsible 
19.10 	for providing, paying for, or facilitating payment, or any combination of these, for early 
19.11 	intervention services.

19.12 	Sec. 22. Minnesota Statutes 2004, section 125A.33, is amended to read:
19.13 	125A.33 SERVICE COORDINATION.
19.14 	(a) The team developing the IFSP under section  125A.32 must select a service 
19.15 	coordinator to carry out service coordination activities on an interagency basis. Service 
19.16 	coordination must actively promote a family's capacity and competency to identify, 
19.17 	obtain, coordinate, monitor, and evaluate resources and services to meet the family's 
19.18 	needs. Service coordination activities include: 
19.19 	(1) coordinating the performance of evaluations and assessments;
19.20 	(2) facilitating and participating in the development, review, and evaluation of 
19.21 	individualized family service plans;
19.22 	(3) assisting families in identifying available service providers;
19.23 	(4) coordinating and monitoring the delivery of available services;
19.24 	(5) informing families of the availability of advocacy services;
19.25 	(6) coordinating with medical, health, and other service providers;
19.26 	(7) facilitating the development of a transition plan at least 90 days before the time 
19.27 	the child is no longer eligible for early intervention services or,  at the discretion of all 
19.28 	parties, not more than nine months prior to the child's eligibility for preschool services, 
19.29 	if appropriate;
19.30 	(8) managing the early intervention record and submitting additional information to 
19.31 	the local primary agency at the time of periodic review and annual evaluations; and
19.32 	(9) notifying a local primary agency when disputes between agencies impact service 
19.33 	delivery required by an IFSP.
20.1 	(b) A service coordinator must be knowledgeable about children and families 
20.2 	receiving services under this section, requirements of state and federal law, and services 
20.3 	available in the interagency early childhood intervention system.

20.4 	Sec. 23. Minnesota Statutes 2004, section 125A.48, is amended to read:
20.5 	125A.48 STATE INTERAGENCY AGREEMENT.
20.6 	(a) The commissioners of the Departments of Education, Health, and Human 
20.7 	Services must enter into an agreement to implement this section and Part H C, Public 
20.8 	Law 102-119 108-446, and as required by Code of Federal Regulations, title 34, section  
20.9 	303.523, to promote the development and implementation of interagency, coordinated, 
20.10 	multidisciplinary state and local early childhood intervention service systems for serving 
20.11 	eligible young children with disabilities, birth through age two, and their families and 
20.12 	to ensure the meaningful involvement of underserved groups, including minority, 
20.13 	low-income, homeless, and rural families and children with disabilities who are wards 
20.14 	of the state. The agreement must be reviewed annually. 
20.15 	(b) The state interagency agreement must outline at a minimum the conditions, 
20.16 	procedures, purposes, and responsibilities of the participating state and local agencies 
20.17 	for the following:
20.18 	(1) membership, roles, and responsibilities of a state interagency committee for 
20.19 	the oversight of priorities and budget allocations under Part H C, Public Law 102-119
20.20 	108-446, and other state allocations for this program;
20.21 	(2) child find;
20.22 	(3) establishment of local interagency agreements;
20.23 	(4) review by a state interagency committee of the allocation of additional state and 
20.24 	federal early intervention funds by local agencies;
20.25 	(5) fiscal responsibilities of the state and local agencies;
20.26 	(6) intraagency and interagency dispute resolution;
20.27 	(7) payor of last resort;
20.28 	(8) maintenance of effort;
20.29 	(9) procedural safeguards, including mediation;
20.30 	(10) complaint resolution;
20.31 	(11) quality assurance;
20.32 	(12) data collection;
20.33 	(13) an annual summary to the state Interagency Coordinating Council regarding 
20.34 	conflict resolution activities including disputes, due process hearings, and complaints; and
21.1 	(14) other components of the state and local early intervention system consistent 
21.2 	with Public Law 102-119 108-446.
21.3 	Written materials must be developed for parents, IEIC's, and local service providers 
21.4 	that describe procedures developed under this section as required by Code of Federal 
21.5 	Regulations, title 34, section 303.

21.6 	Sec. 24. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
21.7 	3, is amended to read:
21.8 	
21.9 	Subd. 3.  Early childhood family education aid. For early  childhood family 
21.10 	education aid under Minnesota Statutes, section  124D.135:  

21.11			14,356,000
			
21.12		$
	15,105,000
	.......
	2006
	
21.13			15,137,000
			
21.14		$
	20,312,000
	.......
	2007
	
21.15 	
21.16 	The 2006 appropriation includes $1,861,000 $1,859,000 for 2005 and  $12,495,000
21.17 	$13,246,000 for 2006.  
21.18 	
21.19 	The 2007 appropriation includes $2,327,000 $1,471,000 for 2006 and  $12,810,000
21.20 	$18,842,000 for 2007.  
21.21 	

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

21.23 	Sec. 25. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
21.24 	4, is amended to read:
21.25 	
21.26 	Subd. 4.  Health and developmental screening aid. For  health and developmental 
21.27 	screening aid under Minnesota Statutes,  sections 121A.17 and 121A.19:  

21.28			3,076,000
			
21.29		$
	3,000,000
	.......
	2006
	
21.30			3,511,000
			
21.31		$
	2,997,000
	.......
	2007
	
22.1 	
22.2 	The 2006 appropriation includes $417,000 for 2005 and  $2,659,000 $2,583,000 
22.3 	 for 2006.  
22.4 	
22.5 	The 2007 appropriation includes $494,000 $287,000 for 2006 and  $3,017,000
22.6 	$2,710,000 for 2007.  
22.7 	

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

22.9 	Sec. 26. Laws 2005, First Special Session chapter 5, article 9, section 4, subdivision 2, 
22.10 	is amended to read:
22.11 	
22.12 	Subd. 2. Adult basic education aid. For adult basic  education aid under Minnesota 
22.13 	Statutes:  

22.14			36,518,000
			
22.15		$
	38,636,000
	.......
	2006
	
22.16			36,540,000
			
22.17		$
	37,564,000
	.......
	2007
	
22.18 	
22.19 	The 2006 appropriation includes $5,707,000 for 2005 and  $30,811,000 $32,929,000
22.20 	for 2006.  
22.21 	
22.22 	The 2007 appropriation includes $5,737,000 $3,658,000 for 2006 and  $30,803,000
22.23 	$33,906,000 for 2007.  
22.24 	

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

22.26 	Sec. 27. ADULT LITERACY GRANTS FOR RECENT IMMIGRANTS TO 
22.27 	MINNESOTA.
 22.28 		Subdivision 1.Establishment. An adult literacy grant program for recent 
22.29 	immigrants to Minnesota is established in fiscal years 2007 and 2008 only in order to 
22.30 	meet the English language needs of the unanticipated refugees and immigrants to the 
22.31 	state of Minnesota.
23.1 		Subd. 2.Grants. The commissioner of education shall consult adult basic 
23.2 	education service providers in establishing the form and manner of the grant program. 
23.3 	The commissioner shall award grants to organizations providing adult literacy services in 
23.4 	order to help offset the additional costs due to unanticipated high enrollments of recent 
23.5 	refugees and immigrants.

23.6 	Sec. 28. STUDY; CERTIFICATION OF SCHOOL READINESS AND CHILD 
23.7 	CARE PROGRAMS.
 23.8 	The commissioner of education, in consultation with the commissioner of human 
23.9 	services, shall contract with a qualified independent contractor to determine appropriate 
23.10 	criteria and structure for certifying child care programs and providers based on a high 
23.11 	quality school readiness component in the child care setting that adequately prepares 
23.12 	children for school.
23.13 	The contractor must research appropriate criteria for certifying a program or 
23.14 	provider and the structure by which a program or provider would be certified, explore 
23.15 	specific service needs and unique resources available to individual communities, and 
23.16 	explore flexibility in implementing a program or provider plan that prepares children for 
23.17 	kindergarten. The contractor also must evaluate the impact of implementing a school 
23.18 	readiness component in child care settings on providers and families using certified child 
23.19 	care.
23.20 	The commissioner of education must submit a written report of the contractor's 
23.21 	findings and any recommendations about appropriate criteria and structure for establishing 
23.22 	certified child care programs and providers to the senate and house of representatives 
23.23 	committees having jurisdiction over child care issues by December 15, 2006.

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

23.25 	Sec. 29. PARENT FEE SCHEDULE.
 23.26 	Notwithstanding Minnesota Rules, part 3400.0100, subpart 4, the parent fee 
23.27 	schedule for the child care assistance program is as follows:

23.28
23.29	Income Range (as a percentage of the 
federal poverty guidelines)
	Co-payment (as a percentage of adjusted 
gross income)
	
23.30	0-74.99%
	$0/month
	
23.31	75.00-99.99%
	$5/month
	
23.32	100.00-104.99%
	2.61%
	
24.1	105.00-109.99%
	2.61%
	
24.2	110.00-114.99%
	2.61%
	
24.3	115.00-119.99%
	2.61%
	
24.4	120.00-124.99%
	2.91%
	
24.5	125.00-129.99%
	2.91%
	
24.6	130.00-134.99%
	2.91%
	
24.7	135.00-139.99%
	2.91%
	
24.8	140.00-144.99%
	3.21%
	
24.9	145.00-149.99%
	3.21%
	
24.10	150.00-154.99%
	3.21%
	
24.11	155.00-159.99%
	3.84%
	
24.12	160.00-164.99%
	3.84%
	
24.13	165.00-169.99%
	4.46%
	
24.14	170.00-174.99%
	4.76%
	
24.15	175.00-179.99%
	5.05%
	
24.16	180.00-184.99%
	5.65%
	
24.17	185.00-189.99%
	5.95%
	
24.18	190.00-194.99%
	6.24%
	
24.19	195.00-199.99%
	6.84%
	
24.20	200.00-204.99%
	7.58%
	
24.21	205.00-209.99%
	8.33%
	
24.22	210.00-214.99%
	9.20%
	
24.23	215.00-219.99%
	10.07%
	
24.24	220.00-224.99%
	10.94%
	
24.25	225.00-229.99%
	11.55%
	
24.26	230.00-234.99%
	12.16%
	
24.27	235.00-239.99%
	12.77%
	
24.28	240.00-244.99%
	13.38%
	
25.1	245.00-249.99%
	14.00%
	
25.2	250%
	ineligible
	
25.3 	A family's monthly co-payment fee is the fixed percentage established for the 
25.4 	income range multiplied by the highest possible income within that income range.

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

25.6 	Sec. 30. LEGISLATIVE COMMISSION TO END POVERTY IN MINNESOTA 
25.7 	BY 2020.
 25.8 		Subdivision 1.Membership. The Legislative Commission to End Poverty in 
25.9 	Minnesota by 2020 consists of nine members of the senate appointed by the Subcommittee 
25.10 	on Committees of the Committee on Rules and Administration, including four members of 
25.11 	the minority, and nine members of the house of representatives appointed by the speaker, 
25.12 	including four members of the minority. Appointments must be made by members elected 
25.13 	to the 85th session of the legislature and no later than February 15, 2007. The governor 
25.14 	may appoint two nonvoting members to sit with the commission.
25.15 		Subd. 2.Guiding principles. In preparing recommendations on how to end poverty 
25.16 	in Minnesota by 2020, the commission must be guided by the following principles:
25.17 	(a) There should be a consistent and persistent approach that includes participation 
25.18 	of people of faith, nonprofit agencies, government, and business.
25.19 	(b) All people should be provided with those things that protect human dignity 
25.20 	and make for a healthy life, including adequate food and shelter, meaningful work, safe 
25.21 	communities, health care, and education.
25.22 	(c) All people are intended to live well together as a whole community, seeking the 
25.23 	common good, avoiding wide disparities between those who have too little to live on and 
25.24 	those who have a disproportionate share of the nation's goods.
25.25 	(d) All people need to work together to overcome poverty, and this work transcends 
25.26 	both any particular political theory or party and any particular economic theory or 
25.27 	structure. Overcoming poverty requires the use of private and public resources.
25.28 	(e) Alliances are needed between the faith community, nonprofit agencies, 
25.29 	government, business, and others with a commitment to overcoming poverty.
25.30 	(f) Overcoming poverty involves both acts of direct service to alleviate the outcomes 
25.31 	of poverty and advocacy to change those structures that result in people living in poverty.
25.32 	(g) Government is neither solely responsible for alleviating poverty nor removed 
25.33 	from that responsibility. Government is the vehicle by which people order their lives 
25.34 	based on their shared vision. Society is well served when people bring their values into 
26.1 	the public arena. This convergence around issues of poverty and the common good 
26.2 	leads people of varying traditions to call on government to make a critical commitment 
26.3 	to overcoming poverty.
26.4 		Subd. 3.Report. The commission shall report its recommendations on how to end 
26.5 	poverty in Minnesota by 2020 to the legislature by December 15, 2008.
26.6 		Subd. 4.Expiration. The commission expires December 31, 2008.

26.7 	Sec. 31. APPROPRIATIONS.
 26.8 		Subdivision 1.Department of Education. The sums indicated in this section are 
26.9 	appropriated from the general fund to the Department of Education, unless otherwise 
26.10 	specified, for the fiscal years designated.
26.11 		Subd. 2.School readiness and child care programs study. For a school readiness 
26.12 	and child care programs study under section 28: 

26.13		$
	75,000
	.....
	2007
	
26.14 	This is a onetime appropriation.
26.15 		Subd. 3. Head Start/child care partnerships study. For a grant to the Minnesota 
26.16 	Early Learning Foundation to study partnerships between Head Start and child care 
26.17 	providers under Minnesota Statutes, section 124D.175, paragraph (d): 

26.18		$
	25,000
	.....
	2007
	
26.19 	This is a onetime appropriation.
26.20 		Subd. 4.Educate parents partnership. For the educate parents partnership under 
26.21 	Minnesota Statutes, section 124D.129:

26.22		$
	80,000
	.....
	2007
	
26.23 	The base for this program in fiscal year 2008 and later is $50,000.
26.24 		Subd. 5.Kindergarten entrance assessment initiative and intervention 
26.25 	program. For the kindergarten entrance assessment initiative and intervention program 
26.26 	under Minnesota Statutes, section 124D.136:

26.27		$
	258,000
	.....
	2007
	
26.28 		Subd. 6.Early childhood Part C. For the expansion of early childhood Part C 
26.29 	services:

26.30		$
	1,049,000 
	.....
	2007
	
26.31 		Subd. 7. Adult literacy grants for recent immigrants. For adult literacy grants for 
26.32 	recent immigrants to Minnesota under section 27:

27.1		$
	1,500,000
	.....
	2007
	
27.2 	The base for this program is $1,500,000 in fiscal year 2008 and $0 in fiscal year 2009.
27.3 		Subd. 8.NorthStar Quality Improvement and Rating System.  For a grant to the 
27.4 	Minnesota Early Learning Foundation for the NorthStar Quality Improvement and Rating 
27.5 	System under Minnesota Statutes, section 124D.175, paragraph (c):

27.6		$
	1,500,000
	.....
	2007
	
27.7 	This appropriation must be used to implement phase one of the NorthStar Quality 
27.8 	Improvement and Rating System including start-up costs, participation of 200 providers, 
27.9 	parent information, and materials and evaluation by the Minnesota Early Learning 
27.10 	Foundation in consultation with the University of Minnesota.
27.11 	This onetime appropriation is available to June 30, 2008.
27.12 		Subd. 9.Legislative Commission to End Poverty by 2020. To the Legislative 
27.13 	Coordinating Commission for the Legislative Commission to End Poverty by 2020 under 
27.14 	section 30:

27.15		$
	250,000
	.....
	2007

27.16 	Sec. 32.  REPEALER.
 27.17 	Minnesota Statutes 2005 Supplement, section 119B.13, subdivision 7, and Laws 
27.18 	2003, First Special Session chapter 14, article 9, section 36, are repealed.

27.19 	ARTICLE 3
27.20 	GENERAL EDUCATION

27.21 	Section 1. Minnesota Statutes 2005 Supplement, section 126C.10, subdivision 31, 
27.22 	is amended to read:
27.23 		Subd. 31.Transition revenue. (a) A district's transition allowance equals the 
27.24 	greater of zero or the product of the ratio of the number of adjusted marginal cost pupil 
27.25 	units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002 
27.26 	to the district's adjusted marginal cost pupil units for fiscal year 2004, times the difference 
27.27 	between: (1) the lesser of the district's general education revenue per adjusted marginal 
27.28 	cost pupil unit for fiscal year 2003 or the amount of general education revenue the district 
27.29 	would have received per adjusted marginal cost pupil unit for fiscal year 2004 according 
27.30 	to Minnesota Statutes 2002, and (2) the district's general education revenue for fiscal year 
27.31 	2004 excluding transition revenue divided by the number of adjusted marginal cost pupil 
27.32 	units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002.
28.1 	(b) A district's transition revenue for fiscal year 2006 and later equals the sum of 
28.2 	(1) the product of the district's transition allowance times the district's adjusted marginal 
28.3 	cost pupil units plus (2) the amount of referendum revenue under section 126C.17 and 
28.4 	general education revenue, excluding transition revenue, for fiscal year 2004 attributable 
28.5 	to pupils four or five years of age on September 1, 2003, enrolled in a prekindergarten 
28.6 	program implemented by the district before July 1, 2003, and reported as kindergarten 
28.7 	pupils under section 126C.05, subdivision 1, for fiscal year 2004, plus (3) the amount of 
28.8 	compensatory education revenue under subdivision 3 for fiscal year 2005 attributable to 
28.9 	pupils four years of age on September 1, 2003, enrolled in a prekindergarten program 
28.10 	implemented by the district before July 1, 2003, and reported as kindergarten pupils 
28.11 	under section 126C.05, subdivision 1, for fiscal year 2004 multiplied by .04 the district's 
28.12 	transition for prekindergarten revenue under subdivision 31a.

28.13 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2007 
28.14 	and later.

28.15 	Sec. 2. Minnesota Statutes 2004, section 126C.10, is amended by adding a subdivision 
28.16 	to read:
28.17 		Subd. 31a.Transition for prekindergarten revenue. For fiscal year 2007 and 
28.18 	later, a school district's transition for prekindergarten revenue equals the sum of (1) the 
28.19 	amount of referendum revenue under section 126C.17 and general education revenue, 
28.20 	excluding transition revenue, for fiscal year 2004 attributable to pupils four or five years 
28.21 	of age on September 1, 2003, enrolled in a prekindergarten program implemented by the 
28.22 	district before July 1, 2003, and reported as kindergarten pupils under section 126C.05, 
28.23 	subdivision 1, for fiscal year 2004, plus (2) the amount of compensatory education 
28.24 	revenue under subdivision 3 for fiscal year 2005 attributable to pupils four years of 
28.25 	age on September 1, 2003, enrolled in a prekindergarten program implemented by the 
28.26 	district before July 1, 2003, and reported as kindergarten pupils under section 126C.05, 
28.27 	subdivision 1, for fiscal year 2004 multiplied by .04.

28.28 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2007 
28.29 	and later.

28.30 	Sec. 3. Minnesota Statutes 2004, section 126C.10, is amended by adding a subdivision 
28.31 	to read:
28.32 		Subd. 31b.Uses of transition for prekindergarten revenue. A school district that 
28.33 	receives revenue under subdivision 31a must reserve that revenue for prekindergarten 
29.1 	programs serving students who turn age four by September 1 and who will enter 
29.2 	kindergarten the following year.

29.3 	EFFECTIVE DATE. This section is effective for fiscal year 2007 and later.

29.4 	Sec. 4. Laws 2005, First Special Session chapter 5, article 1, section 47, is amended to 
29.5 	read:
29.6 	Sec. 47.  ALTERNATIVE TEACHER COMPENSATION REVENUE  
29.7 	GUARANTEE.
29.8 	Notwithstanding Minnesota Statutes, sections 122A.415,  subdivision 1, and 
29.9 	126C.10, subdivision 34, paragraphs (a) and  (b), a school district that received alternative 
29.10 	teacher  compensation aid for fiscal year 2005, but does not qualify for  alternative 
29.11 	teacher compensation revenue for all sites in the  district for fiscal year 2006 or, 2007, 
29.12 	2008, or 2009, shall receive additional  basic alternative teacher compensation aid for 
29.13 	that fiscal year  equal to the lesser of the amount of alternative teacher  compensation 
29.14 	aid it received for fiscal year 2005 or the amount  it would have received for that fiscal 
29.15 	year under Minnesota  Statutes 2004, section 122A.415, subdivision 1, for teachers at  
29.16 	sites not qualifying for alternative teacher compensation  revenue for that fiscal year, if 
29.17 	the district submits a timely  application and the commissioner determines that the district  
29.18 	continues to implement an alternative teacher compensation  system, consistent with its 
29.19 	application under Minnesota Statutes  2004, section 122A.415, for fiscal year 2005.  The 
29.20 	additional  basic alternative teacher compensation aid under this section  must not be used 
29.21 	in calculating the alternative teacher  compensation levy under Minnesota Statutes, section 
29.22 	126C.10,  subdivision 35.  This section applies only to fiscal years 2006  and 2007 through 
29.23 	2009 and does not apply to later fiscal years.  

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

29.28
29.29		$
	5,136,578,000
5,819,153,000
	.....
	2006
	
29.30
29.31		$
	5,390,196,000
5,472,238,000
	.....
	2007
	
29.32 	The 2006 appropriation includes $784,978,000 $787,978,000 for 2005 and  
29.33 	$4,351,600,000 $5,031,175,000 for 2006.  
30.1 	The 2007 appropriation includes $817,588,000 $513,848,000 for 2006 and  
30.2 	$4,572,608,000 $4,958,390,000 for 2007.

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

30.4 	Sec. 6. ONETIME SUPPLEMENTAL AID.
 30.5 	(a) For fiscal year 2007 only, a school district's onetime supplemental aid is equal to 
30.6 	$34.50 times its adjusted marginal cost pupil units. For fiscal year 2007 only, a charter 
30.7 	school's onetime supplemental aid is equal to $15 times its adjusted marginal cost pupil 
30.8 	units.
30.9 	(b) A district that receives revenue under Minnesota Statutes, section 126C.10, 
30.10 	subdivision 31a, must reserve its onetime supplemental aid according to Minnesota 
30.11 	Statutes, section 126C.10, subdivision 31b.
30.12 	(c) A school district or charter school that does not receive revenue under Minnesota 
30.13 	Statutes, section 126C.10, subdivision 31a, may use its onetime supplemental aid to 
30.14 	reduce class sizes in kindergarten through grade 6, provide all-day kindergarten, reduce its 
30.15 	statutory operating debt, pay for heating and fuel costs, pay for technology costs, provide 
30.16 	prekindergarten programs serving students who turn age four by September 1 and who will 
30.17 	enter kindergarten the following year, or provide limited English proficiency programs.
30.18 	(d) If a district that is required to reserve its onetime supplemental aid under 
30.19 	paragraph (b) adopts a school board resolution to reallocate its funds, the district may use 
30.20 	its onetime supplemental aid according to paragraph (c). A district that adopts a board 
30.21 	resolution to reallocate the onetime supplemental aid reserve under paragraph (b) must 
30.22 	notify the commissioner of education.
30.23 	(e) This aid is paid entirely in fiscal year 2007 based on estimated data. By January 
30.24 	31, 2008, the Department of Education shall recalculate the aid for each district using 
30.25 	actual data, and shall adjust the general education aid paid to school districts for fiscal year 
30.26 	2008 by the amount of the difference between the estimated aid and the actual aid.

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

30.28 	Sec. 7. APPROPRIATION.
 30.29 		Subdivision 1.Department of Education. The sum indicated in this section is 
30.30 	appropriated from the general fund to the Department of Education for the fiscal year 
30.31 	designated.
31.1 		Subd. 2.Onetime supplemental aid. For onetime supplemental aid according to 
31.2 	section 6:

31.3		$
	32,229,000
	.....
	2007

31.4 	ARTICLE 4
31.5 	EDUCATION EXCELLENCE

31.6 	Section 1. Minnesota Statutes 2004, section 122A.09, subdivision 4, is amended to 
31.7 	read:
31.8 		Subd. 4.License and rules. (a) The board must adopt rules to license public school 
31.9 	teachers and interns subject to chapter 14.
31.10 	(b) The board must adopt rules requiring a person to successfully complete a skills 
31.11 	examination in reading, writing, and mathematics as a requirement for initial teacher 
31.12 	licensure. Such rules must require college and universities offering a board-approved 
31.13 	teacher preparation program to provide remedial assistance to persons who did not 
31.14 	achieve a qualifying score on the skills examination, including those for whom English is 
31.15 	a second language.
31.16 	(c) The board must adopt rules to approve teacher preparation programs. The board, 
31.17 	upon the request of a postsecondary student preparing for teacher licensure or a licensed 
31.18 	graduate of a teacher preparation program, shall assist in resolving a dispute between the 
31.19 	person and a postsecondary institution providing a teacher preparation program when the 
31.20 	dispute involves an institution's recommendation for licensure affecting the person or the 
31.21 	person's credentials. At the board's discretion, assistance may include the application 
31.22 	of chapter 14.
31.23 	(d) The board must provide the leadership and shall adopt rules for the redesign of 
31.24 	teacher education programs to implement a research based, results-oriented curriculum that 
31.25 	focuses on the skills teachers need in order to be effective. The board shall implement new 
31.26 	systems of teacher preparation program evaluation to assure program effectiveness based 
31.27 	on proficiency of graduates in demonstrating attainment of program outcomes. The board 
31.28 	must require that persons enrolled in a teacher preparation program receive instruction 
31.29 	in historical and cultural competencies related to Minnesota American Indian tribes and 
31.30 	communities and their contributions to Minnesota, consistent with sections 124D.71 to 
31.31 	124D.82. The competencies related to Minnesota American Indian tribes and communities 
31.32 	must include, among other components, standards for instructional practices most effective 
31.33 	for successfully teaching elementary and secondary American Indian students.
32.1 	(e) The board must adopt rules requiring successful completion of an examination 
32.2 	of general pedagogical knowledge and examinations of licensure-specific teaching 
32.3 	skills. The rules shall be effective on the dates determined by the board but not later 
32.4 	than September 1, 2001.
32.5 	(f) The board must adopt rules requiring teacher educators to work directly with 
32.6 	elementary or secondary school teachers in elementary or secondary schools to obtain 
32.7 	periodic exposure to the elementary or secondary teaching environment.
32.8 	(g) The board must grant licenses to interns and to candidates for initial licenses.
32.9 	(h) The board must design and implement an assessment system which requires a 
32.10 	candidate for an initial license and first continuing license to demonstrate the abilities 
32.11 	necessary to perform selected, representative teaching tasks at appropriate levels.
32.12 	(i) The board must receive recommendations from local committees as established 
32.13 	by the board for the renewal of teaching licenses.
32.14 	(j) The board must grant life licenses to those who qualify according to requirements 
32.15 	established by the board, and suspend or revoke licenses pursuant to sections  122A.20 and  
32.16 	214.10. The board must not establish any expiration date for application for life licenses. 
32.17 	(k) The board must adopt rules that require all licensed teachers who are renewing 
32.18 	their continuing license to include in their renewal requirements further preparation in 
32.19 	the areas of using positive behavior interventions and in accommodating, modifying, and 
32.20 	adapting curricula, materials, and strategies to appropriately meet the needs of individual 
32.21 	students and ensure adequate progress toward the state's graduation rule.
32.22 	(l) In adopting rules to license public school teachers who provide health-related 
32.23 	services for disabled children, the board shall adopt rules consistent with license or 
32.24 	registration requirements of the commissioner of health and the health-related boards who 
32.25 	license personnel who perform similar services outside of the school.
32.26 	(m) The board must adopt rules that require all licensed teachers who are renewing 
32.27 	their continuing license to include in their renewal requirements further reading 
32.28 	preparation, consistent with section  122A.06, subdivision 4. The rules do not take effect 
32.29 	until they are approved by law. Teachers who do not provide direct instruction including, at 
32.30 	least, counselors, school psychologists, school nurses, school social workers, audiovisual 
32.31 	directors and coordinators, and recreation personnel are exempt from this section. 
32.32 	(n) The board must adopt rules that require all licensed teachers who are renewing 
32.33 	their continuing license to include in their renewal requirements further preparation 
32.34 	in understanding the key warning signs of early-onset mental illness in children and 
32.35 	adolescents.
33.1 	(o) The board must adopt rules to include instruction and other development 
33.2 	activities to improve the understanding and effective instruction of and communication 
33.3 	with Minnesota American Indian tribes and communities, consistent with paragraph (d) 
33.4 	and sections 124D.71 to 124D.82, in the 125 clock hours of professional development that 
33.5 	teachers must complete to renew their professional teaching license.

33.6 	EFFECTIVE DATE. This section is effective for the 2006-2007 school year and 
33.7 	later.

33.8 	Sec. 2. [122A.416] ALTERNATIVE TEACHER COMPENSATION REVENUE 
33.9 	FOR PERPICH CENTER FOR ARTS EDUCATION AND MULTIDISTRICT 
33.10 	INTEGRATION COLLABORATIVES.
33.11 	Notwithstanding sections 122A.413, 122A.414, 122A.415, and 126C.10, 
33.12 	multidistrict integration collaboratives and the Perpich Center for Arts Education are 
33.13 	eligible to receive alternative teacher compensation revenue as if they were intermediate 
33.14 	school districts. To qualify for alternative teacher compensation revenue, a multidistrict 
33.15 	integration collaborative or the Perpich Center for Arts Education must meet all of the 
33.16 	requirements of sections 122A.413, 122A.414, and 122A.415 that apply to intermediate 
33.17 	school districts, must report its enrollment as of October 1 of each year to the department, 
33.18 	and must annually report its expenditures for the alternative teacher professional pay 
33.19 	system consistent with the uniform financial accounting and reporting standards to the 
33.20 	department by November 30 of each year.

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

33.22 	Sec. 3. PILOT PROGRAM TO FACILITATE YOUNG CHILDREN'S SECOND 
33.23 	LANGUAGE LEARNING AND STRONGER LITERACY AND VERBAL SKILLS.
 33.24 	(a) A pilot program for fiscal year 2007 is established to allow school districts to 
33.25 	use child-relevant American sign language to encourage children in kindergarten through 
33.26 	grade 3 to learn a second language and develop stronger literacy and verbal skills and 
33.27 	better classroom attention.  School districts that have (1) child care centers or Head Start 
33.28 	classrooms, (2) English language learners, foreign language classrooms, or language 
33.29 	immersion programs, (3) resident families with internationally adopted children, or (4) 
33.30 	classrooms in which children with special needs are served may apply to the education 
33.31 	commissioner, in the form and manner the commissioner determines, for a pilot program 
33.32 	grant.  School districts that receive a grant under this section must use the grant to train 
33.33 	education staff who work with children in kindergarten through grade 3, including 
34.1 	at least classroom teachers, teachers' assistants, ESL teachers, and special education 
34.2 	teachers to use 600 child-relevant signs in sign language to help hearing students acquire 
34.3 	vocabulary quickly and easily, become better problem solvers, become creative thinkers 
34.4 	and communicators and better prepared academically, and to use effective strategies to 
34.5 	incorporate sign language into classroom instruction.  
34.6 	(b) The commissioner may award grants to qualified school districts on a first-come 
34.7 	first-served basis to allow training for 1,000 education staff under this section.
34.8 	(c) The commissioner shall provide for an independent evaluation of the efficacy 
34.9 	of the pilot program under this section and shall recommend to the education policy and 
34.10 	finance committees of the legislature by February 15, 2008, whether or not the program 
34.11 	should be continued and expanded.

34.12 	Sec. 4. CHINESE LANGUAGE PROGRAMS; CURRICULUM 
34.13 	DEVELOPMENT PROJECT.
 34.14 		Subdivision 1.Project parameters. (a) Notwithstanding other law to the contrary, 
34.15 	the commissioner of education may contract with the Board of Regents of the University 
34.16 	of Minnesota or other Minnesota public entity the commissioner determines is qualified 
34.17 	to undertake the development of an articulated K-12 Chinese curriculum for Minnesota 
34.18 	schools that involves:
34.19 	(1) creating a network of Chinese teachers and educators able to develop new and 
34.20 	modify or expand existing world languages K-12 curricula, materials, assessments, and 
34.21 	best practices needed to provide Chinese language instruction to students; and
34.22 	(2) coordinating statewide efforts to develop and expand Chinese language 
34.23 	instruction so that it is uniformly available to students throughout the state, and making 
34.24 	innovative use of media and technology, including television, distance learning, and online 
34.25 	courses to broaden students' access to the instruction.
34.26 	(b) The entity with which the commissioner contracts under paragraph (a) must have 
34.27 	sufficient knowledge and expertise to ensure the professional development of appropriate, 
34.28 	high-quality curricula, supplementary materials, aligned assessments, and best practices 
34.29 	that accommodate different levels of student ability and types of programs.
34.30 	(c) Project participants must:
34.31 	(1) work throughout the project to develop curriculum, supplementary materials, 
34.32 	aligned assessments, and best practices; and
34.33 	(2) make curriculum, supplementary materials, aligned assessments, and best 
34.34 	practices equitably available to Minnesota schools and students.
35.1 		Subd. 2.Project participants. The entity with which the commissioner contracts 
35.2 	must work with the network of Chinese teachers and educators to:
35.3 	(1) conduct an inventory of Chinese language curricula, supplementary materials, 
35.4 	and professional development initiatives currently used in Minnesota or other states;
35.5 	(2) develop Chinese language curricula and benchmarks aligned to local world 
35.6 	language standards and classroom-based assessments; and
35.7 	(3) review and recommend to the commissioner how best to build an educational 
35.8 	infrastructure to provide more students with Chinese language instruction, including 
35.9 	how to develop and provide: (i) an adequate supply of Chinese language teachers; (ii) 
35.10 	an adequate number of high-quality school programs; (iii) appropriate curriculum, 
35.11 	instructional materials, and aligned assessments that include technology-based delivery 
35.12 	systems; (iv) teacher preparation programs to train Chinese language teachers; (v) 
35.13 	expedited licensing of Chinese language teachers; (vi) best practices in existing 
35.14 	educational programs that can be used to establish K-12 Chinese language programs; 
35.15 	and (vii) technical assistance resources.

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

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

35.22 	Sec. 6. APPROPRIATION.
 35.23 		Subdivision 1.Department of Education. The sums indicated in this section are 
35.24 	appropriated from the general fund to the Department of Education for the fiscal years 
35.25 	designated.
35.26 		Subd. 2.Northwestern Online College in the High School program. For 
35.27 	Northwestern Online College in the High School program under section 5:

35.28		$
	50,000
	.....
	2007
	
35.29 		Subd. 3.Chinese language. For the Chinese language curriculum project under 
35.30 	section 4:

35.31		$
	250,000
	.....
	2007
	
36.1 	The commissioner must report to the house of representatives and senate committees 
36.2 	having jurisdiction over kindergarten through grade 12 education policy and finance on 
36.3 	the range of the program by February 15, 2007. The report shall address the applicability 
36.4 	of the Chinese language curriculum project to other world languages and include the 
36.5 	availability of instructors, curriculum, high-quality school programs, assessments, and 
36.6 	best practices as they apply to world languages.
36.7 	This is a onetime appropriation.
36.8 		Subd. 4.Child-relevant American sign language. For a contract with a qualified 
36.9 	provider to train education staff to use child-relevant American sign language to facilitate 
36.10 	young children's development of second language learning and stronger literacy and 
36.11 	verbal skills under section 3:

36.12		$
	225,000
	.....
	2007
	
36.13 	Of this appropriation, $150,000 is for actual training costs, $35,000 is for 
36.14 	an independent evaluation of the efficacy of the pilot program, and $40,000 is for 
36.15 	administrative and marketing costs incurred by the Department of Education.
36.16 		Subd. 5.Scholars of distinction. For the scholars of distinction program:

36.17		$
	25,000
	.....
	2007

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

36.19 	ARTICLE 5
36.20 	SPECIAL EDUCATION

36.21 	Section 1. SPECIAL EDUCATION FORECAST MAINTENANCE OF EFFORT.
 36.22 	(a) If, on the basis of a forecast of general fund revenues and expenditures under 
36.23 	Minnesota Statutes, section 16A.103; expenditures for special education aid under 
36.24 	Minnesota Statutes, section 125A.76; transition for disabled students under Minnesota 
36.25 	Statutes, section 124D.454; travel for home-based services under Minnesota Statutes, 
36.26 	section 124A.75, subdivision 1; aid for students with disabilities under Minnesota Statutes, 
36.27 	section 125A.75, subdivision 3; court-placed special education under Minnesota Statutes, 
36.28 	section 125A.79, subdivision 4; or out-of-state tuition under Minnesota Statutes, section 
36.29 	125A.79, subdivision 8, are projected to be less than the amount previously forecast for an 
36.30 	enacted budget, the forecast excess from these programs, up to an amount sufficient to 
36.31 	meet federal special education maintenance of effort, is added to the state total special 
36.32 	education aid in Minnesota Statutes, section 125A.76, subdivision 4.
37.1 	(b) If, on the basis of a forecast of general fund revenues and expenditures under 
37.2 	Minnesota Statutes, section 16A.103, expenditures in the programs in this section are 
37.3 	projected to be greater than previously forecast for an enacted budget, and an addition to 
37.4 	state total special education aid has been made under paragraph (a), the state total special 
37.5 	education aid must be reduced by the lesser of the amount of the expenditure increase or 
37.6 	the amount previously added to state total special education aid, and this amount must be 
37.7 	taken from the programs that were forecast to have a forecast excess.
37.8 	(c) For the purpose of this section, "previously forecast for an enacted budget" means 
37.9 	the allocation of funding for these programs in the most recent forecast of general fund 
37.10 	revenues and expenditures or the act appropriating money for these programs, whichever 
37.11 	occurred most recently. It does not include planning estimates for a future biennium.

37.12 	Sec. 2. SPECIAL EDUCATION STUDY.
 37.13 	(a) The commissioner of education must contract with an independent consultant that 
37.14 	has extensive experience working with various states on special education finance systems 
37.15 	to evaluate Minnesota's special education funding structure and make recommendations 
37.16 	to improve its effectiveness. The recommendations must be in conformance with Public 
37.17 	Law 108-446, section 612(a) (5) (B) (i).
37.18 	(b) The consultant must:
37.19 	(1) conduct an in-depth analysis of the current special education finance system 
37.20 	in Minnesota;
37.21 	(2) convene a task force in Minnesota consisting of superintendents, special 
37.22 	education directors, representatives from special education advocacy organizations, 
37.23 	and parents of children receiving special education services to help formulate 
37.24 	recommendations for improvement; and
37.25 	(3) prepare a report to be submitted to the Department of Education and the 
37.26 	legislature.
37.27 	(c) In addition to the requirements in paragraph (b), the consultant must analyze 
37.28 	and report on the effectiveness of the current special education program in educating 
37.29 	Minnesota students.  The consultant must use a statistical analysis to help explain 
37.30 	differences in spending across school districts while controlling for student performance.
37.31 	(d) The commissioner must report on the findings on the contract to the legislative 
37.32 	committees having jurisdiction over kindergarten through grade 12 finance before 
37.33 	December 15, 2007.

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

38.1 	Sec. 3. APPROPRIATION.
 38.2 		Subdivision 1.Department of Education. The sum indicated in this section is 
38.3 	appropriated from the general fund to the Department of Education for the fiscal year 
38.4 	designated.
38.5 		Subd. 2.Special education study contract. For a contract to examine Minnesota's 
38.6 	special education funding structure under section 2:

38.7		$
	250,000
	.....
	2007

38.8 	ARTICLE 6
38.9 	FACILITIES, ACCOUNTING, AND TECHNOLOGY

38.10 	Section 1. Minnesota Statutes 2004, section 123B.57, subdivision 6, is amended to read:
38.11 		Subd. 6.Uses of health and safety revenue. (a) Health and safety revenue may 
38.12 	be used only for approved expenditures necessary to correct fire and life safety hazards, 
38.13 	or for the removal or encapsulation of asbestos from school buildings or property 
38.14 	owned or being acquired by the district, asbestos-related repairs, cleanup and disposal 
38.15 	of polychlorinated biphenyls found in school buildings or property owned or being 
38.16 	acquired by the district, or the cleanup, removal, disposal, and repairs related to storing 
38.17 	heating fuel or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, 
38.18 	as defined in section  296A.01, Minnesota occupational safety and health administration 
38.19 	regulated facility and equipment hazards, indoor air quality mold abatement, upgrades 
38.20 	or replacement of mechanical ventilation systems to meet American Society of Heating, 
38.21 	Refrigerating and Air Conditioning Engineers standards and State Mechanical Code, 
38.22 	Department of Health Food Code and swimming pool hazards excluding depth correction, 
38.23 	and health, safety, and environmental management. Testing and calibration activities are 
38.24 	permitted for existing mechanical ventilation systems at intervals no less than every five 
38.25 	years. Health and safety revenue must not be used to finance a lease purchase agreement, 
38.26 	installment purchase agreement, or other deferred payments agreement. Health and safety 
38.27 	revenue must not be used for the construction of new facilities or the purchase of portable 
38.28 	classrooms, for interest or other financing expenses, or for energy efficiency projects 
38.29 	under section  123B.65. The revenue may not be used for a building or property or part 
38.30 	of a building or property used for postsecondary instruction or administration or for a 
38.31 	purpose unrelated to elementary and secondary education. 
38.32 	(b) Notwithstanding paragraph (a), health and safety revenue must not be used for 
38.33 	replacement of building materials or facilities including roof, walls, windows, internal 
39.1 	fixtures and flooring, nonhealth and safety costs associated with demolition of facilities, 
39.2 	structural repair or replacement of facilities due to unsafe conditions, violence prevention 
39.3 	and facility security, ergonomics, building and heating, ventilating and air conditioning 
39.4 	supplies, maintenance, and cleaning, testing, and calibration activities. All assessments, 
39.5 	investigations, inventories, and support equipment not leading to the engineering or 
39.6 	construction of a project shall be included in the health, safety, and environmental 
39.7 	management costs in subdivision 8, paragraph (a).

39.8 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008 
39.9 	and later.

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

39.14
39.15		$
	25,654,000
27,194,000
	.....
	2006
	
39.16
39.17		$
	24,134,000
18,410,000
	.....
	2007
	
39.18 	The 2006 appropriation includes $4,654,000 $4,653,000 for 2005 and  $21,000,000
39.19 	$22,541,000 for 2006.  
39.20 	The 2007 appropriation includes $3,911,000 $2,504,000 for 2006 and  $20,223,000
39.21 	$15,906,000 for 2007.  

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

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

39.28			50,000
			
39.29		$
	524,000
	.....
	2006
	
39.30 	The school district must submit proposed expenditures for  these funds for review 
39.31 	and comment approval under Minnesota  Statutes, section 123B.71 actual expenditure 
40.1 	information to support this appropriation to the Department of Education, before the 
40.2 	commissioner releases the  funds to the district. The district must report the amount of  its 
40.3 	unreimbursed costs to the commissioner.

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

40.5 	Sec. 4. LEVY; RED WING.
 40.6 	For taxes payable in 2007 only, Independent School District No. 256, Red Wing, 
40.7 	may levy an amount up to $158,000 for the construction deficit for building the community 
40.8 	ice arena.

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

40.10 	Sec. 5. APPROPRIATION; WASECA LEVY.
 40.11 	Independent School District No. 829, Waseca, may levy up to $343,550 beginning 
40.12 	in 2006 over five years for health and safety revenue lost due to miscalculation. $316,000 
40.13 	is appropriated in fiscal year 2007 to the commissioner of education for payment of the aid 
40.14 	portion of lost revenue. If the district does not levy the full amount authorized within the 
40.15 	five-year period, other state aid due to the district shall be reduced proportionately. This is 
40.16 	a onetime appropriation for fiscal year 2007.

40.17 	Sec. 6. APPROPRIATION; ROCORI SCHOOL DISTRICT.
 40.18 	$137,000 is appropriated in fiscal year 2007 from the general fund to the 
40.19 	commissioner of education for a grant to Independent School District No. 750, Rocori. 
40.20 	The grant is for a continuation of district activities that were developed in concert with 
40.21 	the district's federal School Emergency Response to Violence, or Project SERV, grant. 
40.22 	The grant may be used to continue the district's recovery efforts, and uses include: an 
40.23 	academic program and impact of tragedy or program assessment of educational adequacy; 
40.24 	an organizational analysis; a strategic planning overview; a district assessment survey; 
40.25 	continued recovery support; staff development initiatives; and any other activities 
40.26 	developed in response to the federal Project SERV grant.
40.27 	The base budget for this program for fiscal year 2008 only is $53,000.

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

40.29 	Sec. 7. FUND TRANSFERS.
 40.30 		Subdivision 1.A.C.G.C. Notwithstanding Minnesota Statutes, sections 123B.79, 
40.31 	123B.80, and 475.61, subdivision 4, Independent School District No. 2396, A.C.G.C., on 
41.1 	June 30, 2006, may permanently transfer up to $219,000 from its debt redemption fund 
41.2 	to its reserved for operating capital account in its general fund and up to $203,000 from 
41.3 	its reserved account for disabled accessibility to its unrestricted general fund without 
41.4 	making a levy reduction.
41.5 		Subd. 2.Alden-Conger. Notwithstanding Minnesota Statutes, sections 123B.79 and 
41.6 	123B.80, as of June 30, 2006, Independent School District No. 242, Alden-Conger, may 
41.7 	permanently transfer up to $164,000 from its reserved for disabled accessibility account to 
41.8 	its unrestricted general fund account without making a levy reduction.
41.9 		Subd. 3.Eden Valley-Watkins. Notwithstanding Minnesota Statutes, sections 
41.10 	123B.79, 123B.80, and 475.61, subdivision 4, Independent School District No. 463, Eden 
41.11 	Valley-Watkins, as of June 30, 2006, may permanently transfer up to $50,000 from its debt 
41.12 	redemption fund to the capital account in its general fund without making a levy reduction.
41.13 		Subd. 4.Fosston. Notwithstanding Minnesota Statutes, sections 123B.79 and 
41.14 	123B.80, as of June 30, 2006, Independent School District No. 601, Fosston, may 
41.15 	permanently transfer up to $80,000 from its reserved for disabled accessibility account to 
41.16 	its unrestricted general fund account without making a levy reduction.
41.17 		Subd. 5.Hopkins. Notwithstanding Minnesota Statutes, section 123B.79 or 
41.18 	123B.80, on June 30, 2006, Independent School District No. 270, Hopkins, may 
41.19 	permanently transfer up to $300,000 from its community education reserve fund balance 
41.20 	to its undesignated general fund balance to assist the district in decreasing its statutory 
41.21 	operating debt.
41.22 		Subd. 6.Lester Prairie. Notwithstanding Minnesota Statutes, sections 123B.79 
41.23 	or 123B.80, on June 30, 2006, Independent School District No. 424, Lester Prairie, may 
41.24 	permanently transfer up to $150,000 from its reserved for operating capital account and up 
41.25 	to $107,000 from its reserved for severance account, to its undesignated balance in the 
41.26 	general fund.
41.27 		Subd. 7.Milroy. Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, 
41.28 	on June 30, 2006, Independent School District No. 635, Milroy, may permanently transfer 
41.29 	up to $26,000 from its reserved for disability accessibility account to its undesignated 
41.30 	general fund balance without making a levy reduction. 
41.31 		Subd. 8.New London-Spicer. Notwithstanding Minnesota Statutes, sections 
41.32 	123B.79, 123B.80, and 475.61, subdivision 4, Independent School District No. 345, New 
41.33 	London-Spicer, may permanently transfer up to $150,000 each year for five years from its 
41.34 	debt redemption fund to its general fund without making a levy reduction for the purpose 
41.35 	of replacing the roof on the Prairie Woods Elementary School.  The district must make its 
42.1 	initial transfer according to this section on June 30, 2006.  The subsequent four transfers 
42.2 	must be made on June 30 of each subsequent year.
42.3 		Subd. 9.Northland Community Schools. Notwithstanding Minnesota Statutes, 
42.4 	section 123B.79 or 123B.80, on or before June 30, 2006, Independent School District No. 
42.5 	118, Northland Community Schools, may permanently transfer up to $197,000 from its 
42.6 	reserved for disabled accessibility account to its reserved for operating capital account in 
42.7 	its general fund without making a levy reduction.
42.8 		Subd. 10.Rocori.  Notwithstanding Minnesota Statutes, sections 123B.79, 123B.80, 
42.9 	and 475.61, subdivision 4, on June 30, 2006, Independent School District No. 750, Rocori, 
42.10 	may permanently transfer up to $250,000 from its debt redemption fund to the operating 
42.11 	capital account in its general fund without making a levy reduction.
42.12 		Subd. 11.Roseville. Notwithstanding Minnesota Statutes, sections 123B.79, 
42.13 	123B.80, and 475.61, subdivision 4, on June 30, 2006, Independent School District No. 
42.14 	623, Roseville, may permanently transfer up to $90,000 from its debt redemption fund to 
42.15 	its general fund without making a levy reduction. 
42.16 		Subd. 12.Tyler. Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, 
42.17 	Independent School District No. 409, Tyler, on June 30, 2006, may permanently transfer 
42.18 	up to $451,000 from its reserved for capital operating account to its debt redemption fund.
42.19 		Subd. 13.Willmar.  Notwithstanding Minnesota Statutes, sections 123B.79, 
42.20 	123B.80, and 475.61, subdivision 4, Independent School District No. 347, Willmar, on 
42.21 	June 30, 2006, may permanently transfer up to $335,200 from its debt redemption fund to 
42.22 	its unrestricted general fund without making a levy reduction.

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

42.24 	ARTICLE 7
42.25 	NUTRITION AND LIBRARIES

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

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

43.3
43.4		$
	8,998,000
9,760,000
	.....
	2006
	
43.5
43.6		$
	9,076,000
10,391,000
	.....
	2007

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

43.8 	Sec. 3. Laws 2005, First Special Session chapter 5, article 6, section 1, subdivision 2, 
43.9 	is amended to read:
43.10 	
43.11 	Subd. 2.  Basic system support. For basic system support  grants under Minnesota 
43.12 	Statutes, section 134.355:  

43.13
43.14		$
	8,570,000
9,058,000
	.....
	2006
	
43.15
43.16		$
	8,570,000
9,020,000
	.....
	2007
	
43.17 	
43.18 	The 2006 appropriation includes $1,345,000 for 2005 and  $7,225,000 $7,713,000 
43.19 	for 2006.
43.20 	
43.21 	The 2007 appropriation includes $1,345,000$857,000 for 2006 and $7,225,000 
43.22 	$8,163,000 for 2007.
43.23 	

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

43.25 	ARTICLE 8
43.26 	STATE AGENCIES

43.27 	Section 1. Laws 2005, First Special Session chapter 5, article 10, section 5, subdivision 
43.28 	2, is amended to read:
43.29 	
44.1 	Subd. 2.  Department. (a) For the Department of Education:  
44.2 	

44.3		$
	21,997,000
	.....
	2006
	
44.4
44.5		$
	22,847,000
22,867,000
	.....
	2007
	
44.6 	
44.7 	Any balance in the first year does not cancel but is  available in the second year.  
44.8 	
44.9 	(b) $260,000 each year is for the Minnesota Children's  Museum.  
44.10 	
44.11 	(c) $41,000 each year is for the Minnesota Academy of  Science.  
44.12 	
44.13 	(d) $605,000 each year is for the Board of Teaching.  
44.14 	
44.15 	(e) $160,000 each year is for the Board of School  Administrators.  
44.16 	
44.17 	(f) $300,000 in fiscal year 2006 and $1,150,000 in fiscal  year 2007 are for the 
44.18 	value-added index assessment model.  
44.19 	
44.20 	(g) The expenditures of federal grants and aids as shown in  the biennial budget 
44.21 	document and its supplements are approved  and appropriated and shall be spent as 
44.22 	indicated.  
44.23 	(h) The base for fiscal years 2008 and 2009 is $22,847,000.
44.24 	

44.25 	ARTICLE 9
44.26 	 EDUCATION FORECAST ADJUSTMENTS
44.27 	A. GENERAL EDUCATION

44.28 	Section 1. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 
44.29 	3, is amended to read:
44.30 	Subd. 3.   Referendum tax base replacement aid. For  referendum tax base 
44.31 	replacement aid under Minnesota Statutes,  section 126C.17, subdivision 7a:

45.1
45.2		$
	8,704,000
9,200,000
	.....
	2006
	
45.3		$
	8,704,000
	.....
	2007
	
45.4 	The 2006 appropriation includes $1,366,000 for 2005 and  $7,338,000 $7,834,000
45.5 	for 2006.  
45.6 	The 2007 appropriation includes $1,366,000 $870,000 for 2006 and  $7,338,000
45.7 	$7,834,000 for 2007.

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

45.9 	Sec. 2. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 5, 
45.10 	is amended to read:
45.11 	Subd. 5.  Abatement revenue.  For abatement aid under  Minnesota Statutes, section 
45.12 	127A.49:

45.13
45.14		$
	903,000
909,000
	.....
	2006
	
45.15
45.16		$
	955,000
1,026,000
	.....
	2007
	
45.17 	The 2006 appropriation includes $187,000 for 2005 and  $716,000$722,000 for 2006.  
45.18 	The 2007 appropriation includes $133,000$80,000 for 2006 and  $822,000$946,000 
45.19 	for 2007.

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

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

45.25
45.26		$
	253,000
527,000
	.....
	2007
	
45.27 	The 2007 appropriation includes $0 for 2006 and $253,000 $527,000 for 2007.  

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

46.3
46.4		$
	15,370,000
15,458,000
	.....
	2006
	
46.5
46.6		$
	16,434,000
15,991,000
	.....
	2007
	
46.7 	The 2006 appropriation includes $2,305,000 $1,864,000 for 2005 and  $13,065,000 
46.8 	$13,594,000 for 2006.
46.9 	The 2007 appropriation includes $2,433,000 $1,510,000 for 2006 and  $14,001,000 
46.10 	$14,481,000 for 2007.

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

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

46.16
46.17		$
	21,451,000
21,371,000
	.....
	2006
	
46.18
46.19		$
	23,043,000
20,843,000
	.....
	2007
	
46.20 	The 2006 appropriation includes $3,274,000 for 2005 and  $18,177,000 $18,097,000
46.21 	for 2006.
46.22 	The 2007 appropriation includes $3,385,000$2,010,000 for 2006 and  $19,658,000
46.23 	$18,833,000 for 2007.

46.24 	EFFECTIVE DATE. This section is effective the day following final enactment.
46.25 	B. EDUCATION EXCELLENCE

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

47.1
47.2		$
	25,465,000
25,331,000
	.....
	2006
	
47.3
47.4		$
	30,929,000
27,806,000
	.....
	2007
	
47.5 	The 2006 appropriation includes $3,324,000$3,173,000 for 2005 and  $22,141,000
47.6 	$22,158,000 for 2006.  
47.7 	The 2007 appropriation includes $4,123,000$2,462,000 for 2006 and  $26,806,000
47.8 	$25,344,000 for 2007.  

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

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

47.14
47.15		$
	1,393,000
1,291,000
	.....
	2006
	
47.16
47.17		$
	3,185,000
2,347,000
	.....
	2007
	
47.18 	The 2006 appropriation includes $0 for 2005 and $1,393,000 $1,291,000 for 2006.  
47.19 	The 2007 appropriation includes $259,000$143,000 for 2006 and  $2,926,000
47.20 	$2,204,000 for 2007.  

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

47.22 	Sec. 8. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 4, 
47.23 	is amended to read:
47.24 	Subd. 4.   Integration aid. For integration aid under  Minnesota Statutes, section 
47.25 	124D.86, subdivision 5:  

47.26
47.27		$
	57,801,000
59,404,000
	.....
	2006
	
47.28
47.29		$
	57,536,000
58,405,000
	.....
	2007
	
48.1 	The 2006 appropriation includes $8,545,000 for 2005 and  $49,256,000$50,859,000 
48.2 	for 2006.  
48.3 	The 2007 appropriation includes $9,173,000$5,650,000 for 2006 and  $48,363,000
48.4 	$52,755,000 for 2007.  

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

48.6 	Sec. 9. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 6, 
48.7 	is amended to read:
48.8 	Subd. 6.   Interdistrict desegregation or integration transportation grants. For 
48.9 	interdistrict desegregation or  integration transportation grants under Minnesota Statutes,  
48.10 	section 124D.87:  

48.11
48.12		$
	7,768,000
6,032,000
	.....
	2006
	
48.13
48.14		$
	9,908,000
10,134,000
	.....
	2007

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

48.16 	Sec. 10. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 
48.17 	7, is amended to read:
48.18 	Subd. 7.   Success for the future. For American Indian  success for the future grants 
48.19 	under Minnesota Statutes, section  124D.81:  

48.20
48.21		$
	2,137,000
2,240,000
	.....
	2006
	
48.22		$
	2,137,000
	.....
	2007
	
48.23 	The 2006 appropriation includes $335,000$316,000 for 2005 and  $1,802,000
48.24 	$1,924,000 for 2006.  
48.25 	The 2007 appropriation includes $335,000$213,000 for 2006 and  $1,802,000
48.26 	$1,924,000 for 2007.  

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

48.28 	Sec. 11. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 
48.29 	10, is amended to read:
49.1 	Subd. 10.  Tribal contract schools. For tribal contract  school aid under Minnesota 
49.2 	Statutes, section 124D.83:  

49.3
49.4		$
	2,389,000
2,338,000
	.....
	2006
	
49.5
49.6		$
	2,603,000
2,357,000
	.....
	2007
	
49.7 	The 2006 appropriation includes $348,000 for 2005 and  $2,041,000$1,990,000
49.8 	for 2006.  
49.9 	The 2007 appropriation includes $380,000$221,000 for 2006 and  $2,223,000
49.10 	$2,136,000 for 2007.  

49.11 	EFFECTIVE DATE. This section is effective the day following final enactment.
49.12 	C. SPECIAL PROGRAMS

49.13 	Sec. 12. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
49.14 	2, is amended to read:
49.15 	Subd. 2.   Special education; regular. For special  education aid under Minnesota 
49.16 	Statutes, section 125A.75:  

49.17
49.18		$
	528,846,000
559,485,000
	.....
	2006
	
49.19
49.20		$
	527,446,000
528,106,000
	.....
	2007
	
49.21 	The 2006 appropriation includes $83,078,000 for 2005 and  $445,768,000
49.22 	$476,407,000 for 2006.  
49.23 	The 2007 appropriation includes $83,019,000$52,934,000 for 2006 and  
49.24 	$444,427,000$475,172,000 for 2007.  

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

49.26 	Sec. 13. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
49.27 	3, is amended to read:
49.28 	Subd. 3.  Aid for children with disabilities. For aid  under Minnesota Statutes, 
49.29 	section 125A.75, subdivision 3, for  children with disabilities placed in residential facilities  
49.30 	within the district boundaries for whom no district of residence  can be determined:  

50.1
50.2		$
	2,212,000
1,527,000
	.....
	2006
	
50.3
50.4		$
	2,615,000
1,624,000
	.....
	2007
	
50.5 	If the appropriation for either year is insufficient, the  appropriation for the other 
50.6 	year is available.  

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

50.8 	Sec. 14. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
50.9 	4, is amended to read:
50.10 	Subd. 4.  Travel for home-based services. For aid for  teacher travel for home-based 
50.11 	services under Minnesota Statutes,  section 125A.75, subdivision 1:  

50.12
50.13		$
	187,000
198,000
	.....
	2006
	
50.14		$
	195,000
	.....
	2007
	
50.15 	The 2006 appropriation includes $28,000 for 2005 and  $159,000$170,000 for 2006.  
50.16 	The 2007 appropriation includes $29,000$18,000 for 2006 and  $166,000$177,000
50.17 	for 2007.  

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

50.19 	Sec. 15. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
50.20 	5, is amended to read:
50.21 	Subd. 5.   Special education; excess costs. For excess  cost aid under Minnesota 
50.22 	Statutes, section 125A.79, subdivision  7:  

50.23
50.24		$
	102,083,000
106,453,000
	.....
	2006
	
50.25
50.26		$
	104,286,000
104,333,000
	.....
	2007
	
50.27 	The 2006 appropriation includes $37,455,000 for 2005 and  $64,628,000$68,998,000
50.28 	for 2006.  
50.29 	The 2007 appropriation includes $38,972,000$34,602,000 for 2006 and  $65,314,000
50.30 	$69,731,000 for 2007.  

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

51.2 	Sec. 16. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
51.3 	6, is amended to read:
51.4 	Subd. 6. Transition for disabled students. For aid for  transition programs for 
51.5 	children with disabilities under  Minnesota Statutes, section 124D.454:  

51.6
51.7		$
	8,788,000
9,300,000
	.....
	2006
	
51.8
51.9		$
	8,765,000
8,781,000
	.....
	2007
	
51.10 	The 2006 appropriation includes $1,380,000 for 2005 and  $7,408,000$7,920,000
51.11 	for 2006.  
51.12 	The 2007 appropriation includes $1,379,000$880,000 for 2006 and  $7,386,000
51.13 	$7,901,000 for 2007.  

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

51.15 	Sec. 17. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
51.16 	7, is amended to read:
51.17 	Subd. 7.  Court-placed special education revenue. For  reimbursing serving 
51.18 	school districts for unreimbursed eligible  expenditures attributable to children placed in 
51.19 	the serving  school district by court action under Minnesota Statutes,  section 125A.79, 
51.20 	subdivision 4:  

51.21
51.22		$
	65,000
46,000
	.....
	2006
	
51.23		$
	70,000
	.....
	2007

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

51.25 	Sec. 18. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 
51.26 	2, is amended to read:
51.27 	Subd. 2.  Health and safety revenue. For health and  safety aid according to 
51.28 	Minnesota Statutes, section 123B.57,  subdivision 5:  

52.1
52.2		$
	802,000
823,000
	.....
	2006
	
52.3
52.4		$
	578,000
352,000
	.....
	2007
	
52.5 	The 2006 appropriation includes $211,000 for 2005 and  $591,000$612,000 for 2006.  
52.6 	The 2007 appropriation includes $109,000$68,000 for 2006 and  $469,000$284,000
52.7 	for 2007.  

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

52.9 	Sec. 19. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 
52.10 	4, is amended to read:
52.11 	Subd. 4.  Alternative facilities bonding aid. For  alternative facilities bonding aid, 
52.12 	according to Minnesota  Statutes, section 123B.59, subdivision 1:  

52.13
52.14		$
	19,287,000
20,387,000
	.....
	2006
	
52.15		$
	19,287,000
	.....
	2007
	
52.16 	The 2006 appropriation includes $3,028,000 for 2005 and  $16,259,000$17,359,000
52.17 	for 2006.  
52.18 	The 2007 appropriation includes $3,028,000$1,928,000 for 2006 and  $16,259,000
52.19 	$17,359,000 for 2007.  

52.20 	EFFECTIVE DATE. This section is effective the day following final enactment.
52.21 	D. NUTRITION AND ACCOUNTING

52.22 	Sec. 20. Laws 2005, First Special Session chapter 5, article 5, section 17, subdivision 
52.23 	3, is amended to read:
52.24 	Subd. 3. Traditional school breakfast; kindergarten  milk. For traditional school 
52.25 	breakfast aid and kindergarten  milk under Minnesota Statutes, sections 124D.1158 and 
52.26 	124D.118:  

52.27
52.28		$
	4,878,000
4,856,000
	.....
	2006
	
52.29
52.30		$
	4,968,000
5,044,000
	.....
	2007

53.1 	EFFECTIVE DATE. This section is effective the day following final enactment.
53.2 	E. LIBRARIES

53.3 	Sec. 21. Laws 2005, First Special Session chapter 5, article 6, section 1, subdivision 3, 
53.4 	is amended to read:
53.5 	Subd. 3.   Multicounty, multitype library systems. For  grants under Minnesota 
53.6 	Statutes, sections 134.353 and 134.354,  to multicounty, multitype library systems:  

53.7
53.8		$
	903,000
954,000
	.....
	2006
	
53.9		$
	903,000
	.....
	2007
	
53.10 	The 2006 appropriation includes $141,000 for 2005 and  $762,000$813,000 for 2006.  
53.11 	The 2007 appropriation includes $141,000$90,000 for 2006 and  $762,000$813,000
53.12 	for 2007.  

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

53.14 	Sec. 22. Laws 2005, First Special Session chapter 5, article 6, section 1, subdivision 5, 
53.15 	is amended to read:
53.16 	Subd. 5.  Regional library telecommunications aid. For  regional library 
53.17 	telecommunications aid under Minnesota  Statutes, section 134.355:  

53.18
53.19		$
	1,200,000
1,268,000
	.....
	2006
	
53.20		$
	1,200,000
	.....
	2007
	
53.21 	The 2006 appropriation includes $188,000 for 2005 and  $1,012,000$1,080,000
53.22 	for 2006.  
53.23 	The 2007 appropriation includes $188,000$120,000 for 2006 and  $1,012,000
53.24 	$1,080,000 for 2007.  

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

53.27 	Sec. 23. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
53.28 	2, is amended to read:
53.29 	Subd. 2.  School readiness. For revenue for school  readiness programs under 
53.30 	Minnesota Statutes, sections 124D.15  and 124D.16:  

54.1
54.2		$
	9,020,000
9,528,000
	.....
	2006
	
54.3
54.4		$
	9,042,000
9,020,000
	.....
	2007
	
54.5 	The 2006 appropriation includes $1,417,000$1,415,000 for 2005 and  $7,603,000
54.6 	$8,113,000 for 2006.  
54.7 	The 2007 appropriation includes $1,415,000$901,000 for 2006 and  $7,627,000
54.8 	$8,119,000 for 2007.  

54.9 	EFFECTIVE DATE. This section is effective the day following final enactment.
54.10 	G. PREVENTION

54.11 	Sec. 24. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 2, 
54.12 	is amended to read:
54.13 	Subd. 2.  Community education aid. For community  education aid under 
54.14 	Minnesota Statutes, section 124D.20:  

54.15
54.16		$
	1,918,000
2,043,000
	.....
	2006
	
54.17
54.18		$
	1,837,000
1,949,000
	.....
	2007
	
54.19 	The 2006 appropriation includes $390,000$385,000 for 2005 and  $1,528,000
54.20 	$1,658,000 for 2006.  
54.21 	The 2007 appropriation includes $284,000$184,000 for 2006 and  $1,553,000
54.22 	$1,765,000 for 2007.

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

54.24 	Sec. 25. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 3, 
54.25 	is amended to read:
54.26 	Subd. 3.  Adults with disabilities program aid. For  adults with disabilities 
54.27 	programs under Minnesota Statutes,  section 124D.56:  

54.28
54.29		$
	710,000
750,000
	.....
	2006
	
54.30		$
	710,000
	.....
	2007
	
55.1 	The 2006 appropriation includes $111,000 for 2005 and  $599,000$639,000 for 2006.  
55.2 	The 2007 appropriation includes $111,000$71,000 for 2006 and  $599,000$639,000
55.3 	for 2007.  

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

55.5 	Sec. 26. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 5, 
55.6 	is amended to read:
55.7 	Subd. 5. School-age care revenue. For extended day aid  under Minnesota Statutes, 
55.8 	section 124D.22:  

55.9		$
	17,000
	.....
	2006
	
55.10			7,000
			
55.11		$
	4,000
	.......
	2007
	
55.12 	The 2006 appropriation includes $4,000 for 2005 and $13,000  for 2006.  
55.13 	The 2007 appropriation includes $2,000$1,000 for 2006 and $5,000$3,000 for 2007.  
55.14 	

55.15 	ARTICLE 10
55.16 	HIGHER EDUCATION

55.17	Section 1. HIGHER EDUCATION APPROPRIATIONS.
 	
55.18 	The sums shown in the columns marked "APPROPRIATIONS" are added to or, if 
55.19 	shown in parentheses, subtracted from the appropriations in Laws 2005, chapter 107, 
55.20 	article 1, or other law to the agencies and for the purposes specified in this article.  The 
55.21 	appropriations are from the general fund or another named fund and are available for the 
55.22 	fiscal years indicated for each purpose.  The figures "2006" and "2007" used in this article 
55.23 	mean that the addition to the appropriation listed under them is available for the fiscal year 
55.24 	ending June 30, 2006, or June 30, 2007, respectively. "The first year" is fiscal year 2006. 
55.25 	"The second year" is fiscal year 2007. "The biennium" is fiscal years 2006 and 2007.

55.26	SUMMARY BY FUND
	
55.27			2006
		2007
		TOTAL
	
55.28	General
	$
	-0-
	$
	4,700,000
	$
	4,700,000

55.29	SUMMARY BY AGENCY - ALL FUNDS
	
55.30			2006
		2007
		TOTAL
	
56.1	Office of Higher Education
	$
	-0-
	$
	(300,000)
	$
	(300,000)
	
56.2
56.3	Board of Regents of the 
University of Minnesota
		-0-
		5,000,000
		5,000,000

56.4				APPROPRIATIONS
	
56.5				Available for the Year
	
56.6				Ending June 30
	
56.7					2006
		2007

56.8	Sec. 2. OFFICE OF HIGHER EDUCATION
 		-0-
		(300,000)
	
56.9 	State grant program
56.10 	The appropriation base is $144,406,000 for 
56.11 	fiscal year 2008 and $144,406,000 for fiscal 
56.12 	year 2009.

56.13
56.14	Sec. 3. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA
 		-0-
		5,000,000
	
56.15 	University of Minnesota - Rochester
56.16 	For academic programs supporting the 
56.17 	University of Minnesota - Rochester, 
56.18 	including faculty, staff, and program 
56.19 	planning and development in the areas 
56.20 	of biomedical technologies, engineering 
56.21 	and computer technologies, health care 
56.22 	administration, and allied health programs; 
56.23 	ongoing operations of industrial liaison 
56.24 	activities; and operation of leased facilities. 
56.25 	The appropriation base is $5,000,000 for 
56.26 	fiscal year 2008 and $6,330,000 for fiscal 
56.27 	year 2009. 

56.28 	Sec. 4. Minnesota Statutes 2004, section 136A.101, subdivision 4, is amended to read:
56.29 		Subd. 4.Eligible institution. "Eligible institution" means a postsecondary 
56.30 	educational institution that:
57.1 	(1) is located in this state or in a state with which the office has entered into a higher 
57.2 	education reciprocity agreement on state student aid programs that either (1);
57.3 	(2)  is operated by this state or by the University of Minnesota, or (2) is operated 
57.4 	publicly or privately and, as determined by the office, maintains academic standards 
57.5 	substantially equivalent to those of comparable institutions operated in this state.; and
57.6 	(3) is licensed or registered as a postsecondary institution by the Office of Higher 
57.7 	Education or another state agency.
57.8 	Eligible institutions must, within four years of being licensed or registered as a 
57.9 	postsecondary institution by the Office of Higher Education or another state agency, 
57.10 	participate in federal student aid programs under Title IV of the Higher Education Act of 
57.11 	1965, as amended. An institution that participated in the state grant program in fiscal year 
57.12 	2007 but did not participate in federal student aid programs under Title IV of the Higher 
57.13 	Education Act of 1965, as amended, must become a participant in the federal student aid 
57.14 	programs by July 1, 2010, or lose eligibility to participate in the state grant program. 

57.15 	Sec. 5. Minnesota Statutes 2004, section 136A.101, subdivision 8, is amended to read:
57.16 		Subd. 8.Resident student. "Resident student" means a student who meets one of 
57.17 	the following conditions:
57.18 	(1) a student who has resided in Minnesota for purposes other than postsecondary 
57.19 	education for at least 12 months without being enrolled at a postsecondary educational 
57.20 	institution for more than five credits in any term;
57.21 	(2) a dependent student whose parent or legal guardian resides in Minnesota at the 
57.22 	time the student applies;
57.23 	(3) a student who graduated from a Minnesota high school, if the student was a 
57.24 	resident of Minnesota during the student's period of attendance at the Minnesota high 
57.25 	school and the student is physically attending a Minnesota postsecondary educational 
57.26 	institution; or
57.27 	(4) a student who, after residing in the state for a minimum of one year, earned a 
57.28 	high school equivalency certificate in Minnesota.;
57.29 	(5) a member, spouse, or dependent of a member of the armed forces of the United 
57.30 	States stationed in Minnesota on active federal military service as defined in section 
57.31 	190.05, subdivision 5c;
57.32 	(6) a person or spouse of a person who relocated to Minnesota from an area that 
57.33 	is declared a presidential disaster area within the preceding 12 months if the disaster 
57.34 	interrupted the person's postsecondary education; or
58.1 	(7) a person defined as a refugee under United States Code, title 8, section 
58.2 	1101(a)(42), who, upon arrival in the United States, moved to Minnesota and has 
58.3 	continued to reside in Minnesota.

58.4 	Sec. 6. Minnesota Statutes 2005 Supplement, section 136A.121, subdivision 7a, 
58.5 	is amended to read:
58.6 		Subd. 7a.Surplus appropriation. If the amount appropriated is determined by the 
58.7 	office to be more than sufficient to fund projected grant demand in the second year of the 
58.8 	biennium, the office may increase the living and miscellaneous expense allowance in the 
58.9 	second year of the biennium by up to an amount that retains sufficient appropriations 
58.10 	to fund the projected grant demand. The adjustment may be made one or more times. 
58.11 	In making the determination that there are more than sufficient funds, the office shall 
58.12 	balance the need for sufficient resources to meet the projected demand for grants with the 
58.13 	goal of fully allocating the appropriation for state grants. An increase in the living and 
58.14 	miscellaneous expense allowance under this subdivision does not carry forward into a 
58.15 	subsequent biennium. This subdivision expires June 30, 20072009.

58.16 	Sec. 7. Minnesota Statutes 2004, section 136A.15, subdivision 6, is amended to read:
58.17 		Subd. 6.Eligible institution. "Eligible institution" means a postsecondary 
58.18 	educational institution that either:
58.19 	(1) is operated or regulated by this state or by the University of Minnesota, or (2) is 
58.20 	operated publicly or privately in another state, is approved by the United States Secretary 
58.21 	of Education, and, as determined by the office, maintains academic standards substantially 
58.22 	equal to those of comparable institutions operated in this state. It also includes any 
58.23 	institution chartered in a province.; or
58.24 	(2) is licensed or registered as a postsecondary institution by the Office of Higher 
58.25 	Education or another state agency.
58.26 	Eligible institutions must, within four years of being licensed or registered as a 
58.27 	postsecondary institution by the Office of Higher Education or another state agency, 
58.28 	participate in federal student aid programs under Title IV of the Higher Education Act 
58.29 	of 1965, as amended. An institution that participated in the SELF program in fiscal year 
58.30 	2007 but did not participate in federal student aid programs under Title IV of the Higher 
58.31 	Education Act of 1965, as amended, must become a participant in the federal student aid 
58.32 	programs by July 1, 2010, or lose eligibility to participate in the SELF program.
58.33 	An eligible institution must sign an institutional loan participation agreement with 
58.34 	the office that lists the duties and responsibilities of both the institution and the office.

59.1 	Sec. 8. Minnesota Statutes 2004, section 136A.15, subdivision 9, is amended to read:
59.2 		Subd. 9.Minnesota resident student. "Minnesota resident student" means a 
59.3 	student who meets one of the following conditions in section  136A.101, subdivision 8.:
59.4 	(1) a student who has resided in Minnesota for purposes other than postsecondary 
59.5 	education for at least 12 months without being enrolled at a postsecondary educational 
59.6 	institution for more than five credits in any term;
59.7 	(2) a dependent student whose parent or legal guardian resides in Minnesota at the 
59.8 	time the student applies;
59.9 	(3) a student who graduated from a Minnesota high school, if the student was a 
59.10 	resident of Minnesota during the student's period of attendance at the Minnesota high 
59.11 	school and the student is physically attending a Minnesota postsecondary educational 
59.12 	institution; or
59.13 	(4) a student who, after residing in the state for a minimum of one year, earned a 
59.14 	high school equivalency certificate in Minnesota.

59.15 	Sec. 9. Minnesota Statutes 2004, section 136A.1701, subdivision 4, is amended to read:
59.16 		Subd. 4.Terms and conditions of loans. (a) The office may loan money upon such 
59.17 	terms and conditions as the office may prescribe. The principal amount of a loan to an 
59.18 	undergraduate student for a single academic year shall not exceed $6,000 for grade levels 
59.19 	1 and 2 effective July 1, 2006, through June 30, 2007. Effective July 1, 2007, the principal 
59.20 	amount of a loan for grade levels 1 and 2 shall not exceed $7,500. The principal amount 
59.21 	of a loan for grade levels 3, 4, and 5 shall not exceed $7,500 effective July 1, 2006. The 
59.22 	aggregate principal amount of all loans made under this section to an undergraduate 
59.23 	student shall not exceed $25,000 $34,500 through June 30, 2007, and $37,500 after June 
59.24 	30, 2007. The principal amount of a loan to a graduate student for a single academic year 
59.25 	shall not exceed $9,000. The aggregate principal amount of all loans made under this 
59.26 	section to a student as a an undergraduate and graduate student shall not exceed $40,000.
59.27 	$52,500 through June 30, 2007, and $55,500 after June 30, 2007. The amount of the loan 
59.28 	may not exceed the cost of attendance less all other financial aid, including PLUS loans or 
59.29 	other similar parent loans borrowed on the student's behalf. The cumulative SELF loan 
59.30 	debt must not exceed the borrowing maximums in paragraph (b).
59.31 	(b) The cumulative undergraduate borrowing maximums for SELF loans are:
59.32 	(1) effective July 1, 2006, through June 30, 2007:
59.33 	(i) grade level 1, $6,000;
59.34 	(ii) grade level 2, $12,000;
59.35 	(iii) grade level 3, $19,500;
60.1 	(iv) grade level 4, $27,000; and
60.2 	(v) grade level 5, $34,500; and
60.3 	(2) effective July 1, 2007:
60.4 	(i) grade level 1, $7,500;
60.5 	(ii) grade level 2, $15,000;
60.6 	(iii) grade level 3, $22,500;
60.7 	(iv) grade level 4, $30,000; and
60.8 	(v) grade level 5, $37,500.

60.9 	Sec. 10. Minnesota Statutes 2004, section 136A.1701, subdivision 7, is amended to 
60.10 	read:
60.11 		Subd. 7.Repayment of loans. (a) The office shall establish repayment procedures 
60.12 	for loans made under this section, but in no event shall the period of permitted repayment 
60.13 	for SELF II or SELF III loans exceed ten years from the eligible student's termination of 
60.14 	the student's postsecondary academic or vocational program, or 15 years from the date of 
60.15 	the student's first loan under this section, whichever is less.
60.16 	(b) For SELF loans from phases after SELF III, eligible students with aggregate 
60.17 	principal loan balances from all SELF phases that are less than $18,750 shall have a 
60.18 	repayment period not exceeding ten years from the eligible student's graduation or 
60.19 	termination date. For SELF loans from phases after SELF III, eligible students with 
60.20 	aggregate principal loan balances from all SELF phases of $18,750 or greater shall 
60.21 	have a repayment period not exceeding 15 years from the eligible student's graduation 
60.22 	or termination date. For SELF loans from phases after SELF III, the loans shall enter 
60.23 	repayment no later than seven years after the first disbursement date on the loan.

60.24 	Sec. 11. Minnesota Statutes 2004, section 137.17, subdivision 1, is amended to read:
60.25 		Subdivision 1.Establish. The Board of Regents may establish a school of 
60.26 	professional and graduate studies as a nonresidential branch campus of the University of 
60.27 	Minnesota, in Rochester, to serve the educational needs of working adults and other 
60.28 	nontraditional students in southeastern Minnesota. The campus shall be a joint partnership 
60.29 	of the University of Minnesota with Rochester Community and Technical College, and 
60.30 	Winona State University. and to foster the economic goals of the region and the state. The 
60.31 	legislature intends that the University of Minnesota expand higher education offerings in 
60.32 	Rochester. It is the intent of the legislature that this be achieved in part by developing new 
60.33 	and strengthening existing partnerships with higher education institutions in Rochester 
60.34 	and the region in which the state already has a significant investment. 
61.1 	The Board of Trustees of the Minnesota State Colleges and Universities shall 
61.2 	cooperate to achieve the foregoing.

61.3 	Sec. 12. Minnesota Statutes 2004, section 137.17, subdivision 3, is amended to read:
61.4 		Subd. 3.Missions. The legislature intends that the mission of the expanded 
61.5 	education offerings in Rochester be congruent with the university's unique core mission of 
61.6 	teaching, research, and outreach in order to support the educational needs and economic 
61.7 	development of this region and the state. The legislature recognizes that the distinctiveness 
61.8 	of each of the partner  higher education institutions in Rochester must be maintained to 
61.9 	achieve success in serving the higher education needs of the community and the economic 
61.10 	goals of the state. Further, the legislature intends that the University of Minnesota and the 
61.11 	other partner institutions avoid duplicative offerings of courses and programs. Therefore, 
61.12 	the University of Minnesota, Winona State University, and Rochester Community and 
61.13 	Technical College shall develop jointly a statement of missions, roles, and responsibilities 
61.14 	for the programs and services at Rochester which shall be submitted to the legislature by 
61.15 	January 30, 2000, and any time thereafter that the missions, roles, and responsibilities 
61.16 	change.

61.17 	Sec. 13.  REPEALER.
 61.18 	Minnesota Statutes 2004, section 137.17, subdivisions 2 and 4, are repealed.

61.19 	ARTICLE 11
61.20 	ENVIRONMENT, NATURAL RESOURCES, AND AGRICULTURE

61.21
61.22	Section 1. ENVIRONMENTAL, NATURAL RESOURCES, AND 
AGRICULTURAL APPROPRIATIONS.
 	
61.23 	The sums shown in the columns marked "APPROPRIATIONS" are added to the 
61.24 	appropriations in Laws 2005, First Special Session chapter 1, articles 1 and 2, or other 
61.25 	specified law, to the named agencies and for the specified programs or activities. The sums 
61.26 	shown are appropriated from the general fund, or another named fund, to be available for 
61.27 	the fiscal years indicated for each purpose. The figures "2006" and "2007" used in this 
61.28 	article mean that the appropriation or appropriations listed under them are available for 
61.29 	the fiscal year ending June 30, 2006, or June 30, 2007, respectively. Appropriations in 
61.30 	this article for the fiscal year ending June 30, 2006, are effective the day following final 
61.31 	enactment.

62.1	SUMMARY BY FUND
	
62.2			2006
		2007
		TOTAL
	
62.3	General
	$
	523,000
	$
	2,363,000
	$
	2,886,000
	
62.4	Natural Resources
		-0-
		465,000
		465,000
	
62.5	Game and Fish
		340,000
		60,000
		400,000
	
62.6	TOTAL
	$
	863,000
	$
	2,888,000
	$
	3,751,000

62.7				APPROPRIATIONS
	
62.8				Available for the Year
	
62.9				Ending June 30
	
62.10					2006
		2007

62.11	Sec. 2. DEPARTMENT OF AGRICULTURE
 	$
	158,000
	$
	1,073,000
	
62.12 	This appropriation includes money for the 
62.13 	following purposes:

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

62.15
62.16	(b) Compensation payments for livestock 
depredation and crop damage
		40,000
		53,000

62.17
62.18	(c) Plant pathology and biological control 
facility operations
		-0-
		190,000

62.19
62.20	(d) Grant to Second Harvest Heartland on behalf 
of Minnesota's six Second Harvest food banks
		-0-
		200,000
	
62.21 	For the purchase of milk for distribution 
62.22 	to Minnesota's food shelves and other 
62.23 	charitable organizations that are eligible 
62.24 	to receive food from the food banks. This 
62.25 	appropriation becomes base-level funding.
62.26 	Milk purchased under the grants must be 
62.27 	acquired from Minnesota milk processors 
62.28 	and based on low-cost bids. The milk 
62.29 	must be allocated to each Second Harvest 
62.30 	food bank serving Minnesota according 
63.1 	to the formula used in the distribution of 
63.2 	United States Department of Agriculture 
63.3 	commodities under the Emergency Food 
63.4 	Assistance Program. Second Harvest 
63.5 	Heartland must submit quarterly reports 
63.6 	to the commissioner on forms prescribed 
63.7 	by the commissioner. The reports must 
63.8 	include, but are not limited to, information 
63.9 	on the expenditure of money, the amount 
63.10 	of milk purchased, and the organizations 
63.11 	to which the milk was distributed.  Second 
63.12 	Harvest Heartland may enter into contracts 
63.13 	or agreements with food banks for shared 
63.14 	funding or reimbursement of the direct 
63.15 	purchase of milk.  Each food bank receiving 
63.16 	money from this appropriation may use up to 
63.17 	two percent of the grant for administrative 
63.18 	expenses.

63.19	(e) E85 pump installation grants
		-0-
		500,000
	
63.20 	For grants to gasoline service station owners 
63.21 	who, after the effective date of this section, 
63.22 	install pumps in this state for dispensing E85 
63.23 	gasoline. The commissioner may reimburse 
63.24 	owners of gasoline service stations for up to 
63.25 	50 percent of the total cost of installing an 
63.26 	E85 pump, including the tank and any related 
63.27 	components, up to a maximum of $15,000 
63.28 	per E85 pump. The commissioner shall grant 
63.29 	priority for E85 pumps installed in areas of 
63.30 	the state where gasoline service stations with 
63.31 	E85 pumps are not reasonably available to the 
63.32 	general public. $75,000 of this appropriation 
63.33 	is for grants to organizations that promote 
63.34 	the installation of E85 pumps in service 
64.1 	stations. This is a onetime appropriation and 
64.2 	is available until spent.

64.3	Sec. 3. BOARD OF ANIMAL HEALTH
 		277,000
		408,000
	
64.4 	To eliminate bovine tuberculosis from cattle 
64.5 	herds in Minnesota. This is a onetime 
64.6 	appropriation.

64.7	Sec. 4. NATURAL RESOURCES
 		428,000
		1,407,000

64.8	Summary by Fund
	
64.9		2006
	2007
	
64.10	General
	88,000
	882,000
	
64.11	Natural Resources
	-0-
	465,000
	
64.12	Game and Fish
	340,000
	60,000

64.13
64.14	(a) Bovine tuberculosis surveillance and 
diagnosis
		88,000
		132,000
	
64.15 	To diminish the risk of disease transmission 
64.16 	in domestic livestock. This is a onetime 
64.17 	appropriation.

64.18
64.19	(b) Prevention and control of harmful invasive 
species
		-0-
		550,000
	
64.20 	Of this amount, $150,000 is for educational 
64.21 	and enforcement efforts with commercial 
64.22 	businesses to reduce the risk of introducing 
64.23 	harmful invasive species; $150,000 is 
64.24 	for reducing the impact of terrestrial 
64.25 	invasive species on state recreational and 
64.26 	forest lands; $50,000 is for implementing 
64.27 	best management practices designed to 
64.28 	prevent the spread of invasive species from 
64.29 	department field operations; $50,000 is 
64.30 	for prevention education and awareness 
65.1 	programs; and $150,000 is for grants to local 
65.2 	units of government and lake associations 
65.3 	to reduce the impacts of aquatic invasive 
65.4 	species. This appropriation includes money 
65.5 	for the control of curly leaf pondweed in 
65.6 	Lake Osakis.

65.7	(c) Minnesota Shooting Sports Education Center
		-0-
		100,000
	
65.8 	The commissioner may make direct 
65.9 	expenditures for the operation of the center 
65.10 	or contract with another entity to operate the 
65.11 	center. This appropriation is available only 
65.12 	to the extent it is matched by at least $1 of 
65.13 	nonstate money from gifts or grants for each 
65.14 	$2 of state money. This appropriation is 
65.15 	added to the agency base of the Department 
65.16 	of Natural Resources.

65.17	(d) Canoe routes
		-0-
		65,000
	
65.18 	This appropriation is from the water 
65.19 	recreation account in the natural resources 
65.20 	fund to the commissioner of natural resources 
65.21 	to cooperate with local units of government 
65.22 	in marking routes and designating river 
65.23 	accesses and campsites under Minnesota 
65.24 	Statutes, section 85.32. This is a onetime 
65.25 	appropriation and is available until spent.

65.26	(e) Emergency deterrent materials assistance
		340,000
		60,000
	
65.27 	This appropriation is from the game and fish 
65.28 	fund for the emergency deterrent materials 
65.29 	assistance program under Minnesota 
65.30 	Statutes, section 97A.028, subdivision 3.

65.31	(f) Federal recreation area operation
		-0-
		500,000
	
66.1 	$100,000 is from the general fund and 
66.2 	$400,000 is from the state parks account 
66.3 	in the natural resources fund to operate 
66.4 	and maintain the U.S. Army Corps of 
66.5 	Engineers recreation sites on Cross Lake, 
66.6 	Gull Lake, Sandy Lake, Leech Lake, Lake 
66.7 	Pokegama, and Lake Winnibigoshish. This 
66.8 	appropriation is contingent upon acceptance 
66.9 	of a long-term agreement with the U.S. 
66.10 	Army Corps of Engineers. Acceptance may 
66.11 	be through a lease arrangement, a transfer 
66.12 	of the recreation lands, or other agreement 
66.13 	with the U.S. Army Corps of Engineers. The 
66.14 	commissioner shall establish fees for these 
66.15 	recreation sites as provided in Minnesota 
66.16 	Statutes, section 85.052, subdivision 3. The 
66.17 	money collected from fees established under 
66.18 	this section shall be deposited in the natural 
66.19 	resources fund and credited to the state parks 
66.20 	account. This is a onetime appropriation and 
66.21 	is available until spent.

66.22 	Sec. 5. Minnesota Statutes 2005 Supplement, section 35.05, is amended to read:
66.23 	35.05 AUTHORITY OF STATE BOARD.
66.24 	(a) The state board may quarantine or kill any domestic animal infected with, or 
66.25 	which has been exposed to, a contagious or infectious dangerous disease if it is necessary 
66.26 	to protect the health of the domestic animals of the state.
66.27 	(b) The board may regulate or prohibit the arrival in and departure from the state of 
66.28 	infected or exposed animals and, in case of violation of any rule or prohibition, may detain 
66.29 	any animal at its owner's expense. The board may regulate or prohibit the importation of 
66.30 	domestic animals which, in its opinion, may injure the health of Minnesota livestock.
66.31 	(c) When the governor declares an emergency under section 35.0661, the board, 
66.32 	through its executive director, may assume control of such resources within the University 
66.33 	of Minnesota's Veterinary Diagnostic Laboratory as necessary to effectively address the 
66.34 	disease outbreak. The director of the laboratory and other laboratory personnel must 
67.1 	cooperate fully in performing necessary functions related to the outbreak or threatened 
67.2 	outbreak.
67.3 	(d) Rules adopted by the board under authority of this chapter must be published 
67.4 	in the State Register The board may test or require tests of any bovine or cervidae in 
67.5 	the state when the board deems it necessary to achieve or maintain bovine tuberculosis 
67.6 	accredited free state or zone status under the regulations and laws administered by the 
67.7 	United States Department of Agriculture.

67.8 	Sec. 6. Minnesota Statutes 2004, section 84.0835, subdivision 3, is amended to read:
67.9 		Subd. 3.Citation authority. Employees designated by the commissioner under 
67.10 	subdivision 1 may issue citations, as specifically authorized under this subdivision, for 
67.11 	violations of:
67.12 	(1) sections  85.052, subdivision 3 (payment of camping fees in state parks) and,
67.13 	85.45, subdivision 1 (cross-country ski pass), and 85.46 (horse trail pass); 
67.14 	(2) rules relating to hours and days of operation, restricted areas, noise, fireworks, 
67.15 	environmental protection, fires and refuse, pets, picnicking, camping and dispersed 
67.16 	camping, nonmotorized uses, construction of unauthorized permanent trails, mooring of 
67.17 	boats, fish cleaning, swimming, storage and abandonment of personal property, structures 
67.18 	and stands, animal trespass, state park individual and group motor vehicle permits, 
67.19 	licensed motor vehicles, designated roads, and snowmobile operation off trails;
67.20 	(3) rules relating to off-highway vehicle registration, display of registration numbers, 
67.21 	required equipment, operation restrictions, off-trail use for hunting and trapping, and 
67.22 	operation in lakes, rivers, and streams;
67.23 	(4) rules relating to off-highway vehicle and snowmobile operation causing damage 
67.24 	or in closed areas within the Richard J. Dorer Memorial Hardwood State Forest;
67.25 	(5) rules relating to parking, snow removal, and damage on state forest roads; and
67.26 	(6) rules relating to controlled hunting zones on major wildlife management units.

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

67.28 	Sec. 7. Minnesota Statutes 2005 Supplement, section 85.053, subdivision 2, is 
67.29 	amended to read:
67.30 		Subd. 2.Requirement. Except as provided in section 85.054, a motor vehicle 
67.31 	may not enter a state park, state recreation area, or state wayside over 50 acres in area, 
67.32 	without a state park permit issued under this section. Except for vehicles permitted under 
67.33 	subdivision subdivisions 7, paragraph (a), clause (2), and 8,  the state park permit must be 
67.34 	affixed to the lower right corner windshield of the motor vehicle and must be completely 
68.1 	affixed by its own adhesive to the windshield, or the commissioner may, by written order, 
68.2 	provide an alternative means to display and validate annual permits.

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

68.4 	Sec. 8. Minnesota Statutes 2004, section 85.053, is amended by adding a subdivision 
68.5 	to read:
68.6 		Subd. 8.Towed vehicles. The commissioner shall prescribe and issue a temporary 
68.7 	permit for a vehicle that enters a park towed by a vehicle used for camping. The temporary 
68.8 	permit must be issued with the camping permit and allows the towed vehicle to be driven 
68.9 	in state parks until the camping permit expires.

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

68.11 	Sec. 9. Minnesota Statutes 2004, section 85.054, is amended by adding a subdivision 
68.12 	to read:
68.13 		Subd. 12.Soudan Underground Mine State Park. A state park permit is not 
68.14 	required and a fee may not be charged for motor vehicle entry or parking at the visitor 
68.15 	parking area of Soudan Underground Mine State Park.

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

68.17 	Sec. 10. Minnesota Statutes 2005 Supplement, section 85.055, subdivision 1, is 
68.18 	amended to read:
68.19 		Subdivision 1.Fees. The fee for state park permits for:
68.20 	(1) an annual use of state parks is $25;
68.21 	(2) a second vehicle state park permit is $18;
68.22 	(3) a state park permit valid for one day is $7 $5;
68.23 	(4) a daily vehicle state park permit for groups is $5 $3;
68.24 	(5) an annual permit for motorcycles is $20;
68.25 	(6) an employee's state park permit is without charge; and
68.26 	(6) (7) a state park permit for handicapped disabled persons under section  85.053, 
68.27 	subdivision 7, clauses (1) and (2), is $12. 
68.28 	The fees specified in this subdivision include any sales tax required by state law.

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

68.30 	Sec. 11. Minnesota Statutes 2004, section 85.32, subdivision 1, is amended to read:
69.1 		Subdivision 1.Areas marked. The commissioner of natural resources is authorized 
69.2 	in cooperation with local units of government and private individuals and groups when 
69.3 	feasible to mark canoe and boating routes on the Little Fork, Big Fork, Minnesota, 
69.4 	St. Croix, Snake, Mississippi, Red Lake, Cannon, Straight, Des Moines, Crow Wing, 
69.5 	St. Louis, Pine, Rum, Kettle, Cloquet, Root, Zumbro, Pomme de Terre within Swift 
69.6 	County, Watonwan, Cottonwood, Whitewater, Chippewa from Benson in Swift County 
69.7 	to Montevideo in Chippewa County, Long Prairie, Red River of the North, Sauk, and 
69.8 	Crow Rivers which have historic and scenic values and to mark appropriately points of 
69.9 	interest, portages, camp sites, and all dams, rapids, waterfalls, whirlpools, and other 
69.10 	serious hazards which are dangerous to canoe and watercraft travelers.

69.11 	Sec. 12. [85.46] HORSE TRAIL PASS.
69.12 		Subdivision 1.Pass in possession. While riding, leading, or driving a horse on 
69.13 	horse trails and associated day use areas on state trails, in state parks, in state recreation 
69.14 	areas, and in state forests, a person 16 years of age or over shall carry in immediate 
69.15 	possession and visibly display on person or horse tack, a valid horse trail pass. The pass 
69.16 	must be available for inspection by a peace officer, a conservation officer, or an employee 
69.17 	designated under section 84.0835.
69.18 		Subd. 2.License agents. (a) The commissioner of natural resources may appoint 
69.19 	agents to issue and sell horse trail passes. The commissioner may revoke the appointment 
69.20 	of an agent at any time.
69.21 	(b) The commissioner may adopt additional rules as provided in section 97A.485, 
69.22 	subdivision 11. An agent shall observe all rules adopted by the commissioner for the 
69.23 	accounting and handling of passes according to section 97A.485, subdivision 11.
69.24 	(c) An agent must promptly deposit and remit all money received from the sale of 
69.25 	passes, except issuing fees, to the commissioner.
69.26 		Subd. 3.Issuance. The commissioner of natural resources and agents shall issue 
69.27 	and sell horse trail passes. The pass shall include the applicant's signature and other 
69.28 	information deemed necessary by the commissioner. To be valid, a pass must be signed by 
69.29 	the person riding, leading, or driving the horse.
69.30 		Subd. 4.Pass fees. (a) The fee for an annual horse trail pass is $20 for an individual 
69.31 	16 years of age and over. The fee shall be collected at the time the pass is purchased. 
69.32 	Annual passes are valid for one year beginning January 1 and ending December 31.
69.33 	(b) The fee for a daily horse trail pass is $4 for an individual 16 years of age and 
69.34 	over. The fee shall be collected at the time the pass is purchased. The daily pass is valid 
69.35 	only for the date designated on the pass form.
70.1 		Subd. 5.Issuing fee. In addition to the fee for a horse trail pass, an issuing fee of 
70.2 	$1 per pass shall be charged. The issuing fee shall be retained by the seller of the pass. 
70.3 	Issuing fees for passes sold by the commissioner of natural resources shall be deposited in 
70.4 	the state treasury and credited to the horse trail account in the natural resources fund and 
70.5 	are appropriated to the commissioner for the operation of the electronic licensing system. 
70.6 	A pass shall indicate the amount of the fee that is retained by the seller.
70.7 		Subd. 6.Disposition of receipts. Fees collected under this section, except for the 
70.8 	issuing fee, shall be deposited in the state treasury and credited to the horse trail account 
70.9 	in the natural resources fund. Except for the electronic licensing system commission 
70.10 	established by the commissioner under section 84.027, subdivision 15, the fees are 
70.11 	appropriated to the commissioner of natural resources for trail acquisition, trail and facility 
70.12 	development, and maintenance, enforcement, and rehabilitation of horse trails or trails 
70.13 	authorized for horse use, whether for riding, leading, or driving, on state trails and in state 
70.14 	parks, state recreation areas, and state forests.
70.15 		Subd. 7.Duplicate horse trail passes. The commissioner of natural resources and 
70.16 	agents shall issue a duplicate pass to a person whose pass is lost or destroyed using the 
70.17 	process established under section 97A.405, subdivision 3, and rules adopted thereunder. 
70.18 	The fee for a duplicate horse trail pass is $2, with an issuing fee of 50 cents.

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

70.20 	Sec. 13. Minnesota Statutes 2004, section 97A.028, subdivision 3, is amended to read:
70.21 		Subd. 3.Emergency deterrent materials assistance. (a) For the purposes of this 
70.22 	subdivision, "cooperative damage management agreement" means an agreement between 
70.23 	a landowner or tenant and the commissioner that establishes a program for addressing the 
70.24 	problem of destruction of the landowner's or tenant's specialty crops or stored forage 
70.25 	crops by wild animals, or destruction of agricultural crops by flightless Canada geese.
70.26 	(b) A landowner or tenant may apply to the commissioner for emergency deterrent 
70.27 	materials assistance in controlling destruction of the landowner's or tenant's specialty 
70.28 	crops or stored forage crops by wild animals, or destruction of agricultural crops by 
70.29 	flightless Canada geese. Subject to the availability of money appropriated for this purpose, 
70.30 	the commissioner shall provide suitable deterrent materials when the commissioner 
70.31 	determines that:
70.32 	(1) immediate action is necessary to prevent significant damage from continuing
70.33 	or to prevent the spread of disease in wild animals; and
70.34 	(2) a cooperative damage management agreement cannot be implemented 
70.35 	immediately.
71.1 	(c) A person may receive emergency deterrent materials assistance under this 
71.2 	subdivision more than once, but the cumulative total value of deterrent materials provided 
71.3 	to a person, or for use on a parcel, may not exceed $3,000 for specialty crops or measures 
71.4 	to prevent the spread of disease in wild animals in animal disease quarantine areas 
71.5 	established by the Board of Animal Health, or $750 for protecting stored forage crops, 
71.6 	or $500 for agricultural crops damaged by flightless Canada geese. If a person is a 
71.7 	co-owner or cotenant with respect to the specialty crops for which the deterrent materials 
71.8 	are provided, the deterrent materials are deemed to be "provided" to the person for the 
71.9 	purposes of this paragraph.
71.10 	(d) As a condition of receiving emergency deterrent materials assistance under this 
71.11 	subdivision, a landowner or tenant shall enter into a cooperative damage management 
71.12 	agreement with the commissioner. Deterrent materials provided by the commissioner may 
71.13 	include repellents, fencing materials, or other materials recommended in the agreement 
71.14 	to alleviate the damage problem. If requested by a landowner or tenant, any fencing 
71.15 	materials provided must be capable of providing long-term protection of specialty crops. 
71.16 	A landowner or tenant who receives emergency deterrent materials assistance under 
71.17 	this subdivision shall comply with the terms of the cooperative damage management 
71.18 	agreement.

71.19 	Sec. 14. Laws 2005, First Special Session chapter 1, article 2, section 3, subdivision 2, 
71.20 	is amended to read:

71.21
71.22	Subd. 2.Land and Mineral Resources 
Management
 	
71.23	8,903,000
	8,675,000

71.24	Summary by Fund
	
71.25	General 
	5,498,000
	5,248,000
	
71.26	Natural Resources
	2,222,000
	2,222,000
	
71.27	Game and Fish
	 983,000
	1,005,000
	
71.28	Permanent School
	 200,000
	 200,000
	
71.29 	$275,000 the first year and $275,000  the 
71.30 	second year are for iron ore  cooperative 
71.31 	research, of which $137,500  the first year 
71.32 	and $137,500 the second  year are available 
71.33 	only as matched by  $1 of nonstate money for 
72.1 	each $1 of  state money.  The match may be 
72.2 	cash or  in-kind.  
72.3 	$86,000 the first year and $86,000 the  
72.4 	second year are for minerals  cooperative 
72.5 	environmental research, of  which $43,000 
72.6 	the first year and  $43,000 the second year are 
72.7 	available  only as matched by $1 of nonstate 
72.8 	money  for each $1 of state money.  The 
72.9 	match  may be cash or in-kind.  
72.10 	$2,046,000 the first year and  $2,046,000 
72.11 	the second year are from the  minerals 
72.12 	management account in the  natural resources 
72.13 	fund for only the  purposes specified in 
72.14 	new Minnesota  Statutes, section 93.2236, 
72.15 	paragraph  (c).  Of this amount, $1,526,000 
72.16 	the  first year and $1,526,000 the second  
72.17 	year are for mineral resource  management, 
72.18 	$420,000 the first year and  $420,000 the 
72.19 	second year are for  projects to enhance future 
72.20 	income and  promote new opportunities, 
72.21 	including  value-added iron products, 
72.22 	geological  mapping, and mercury research, 
72.23 	and  $100,000 the first year and $100,000  the 
72.24 	second year are for environmental  review and 
72.25 	the processing of permits  for mining projects 
72.26 	that involve  state-owned mineral rights.  The  
72.27 	appropriation is from the revenue  deposited 
72.28 	in the minerals management  account 
72.29 	under Minnesota Statutes,  section 93.22, 
72.30 	subdivision 1, paragraph  (b).  $100,000 each 
72.31 	year is a onetime  appropriation.  
72.32 	$150,000 the first year and $150,000  
72.33 	the second year are from the state  forest 
72.34 	suspense account in the  permanent school 
72.35 	fund to accelerate  land exchanges, land 
73.1 	sales, and  commercial leasing of school 
73.2 	trust  lands.  This appropriation is to be  used 
73.3 	toward meeting the provisions of  Minnesota 
73.4 	Statutes, section 92.121, to  exchange school 
73.5 	trust lands or put  alternatives in effect when 
73.6 	management  practices have diminished 
73.7 	or prohibited  revenue generation, and the 
73.8 	direction  of Minnesota Statutes, section 
73.9 	127A.31,  to secure maximum long-term 
73.10 	economic  return from the school trust lands  
73.11 	consistent with fiduciary  responsibilities and 
73.12 	sound natural  resources conservation and 
73.13 	management  principles.  
73.14 	$50,000 the first year and $50,000 the  second 
73.15 	year are from the state forest  suspense 
73.16 	account in the permanent  school fund to 
73.17 	identify, evaluate, and  lease construction 
73.18 	aggregate located on  school trust lands.  
73.19 	$250,000 the first year is for a grant  to 
73.20 	the Board of Regents of the  University of 
73.21 	Minnesota to drill a  5,000 foot core sampling 
73.22 	bore hole at  the Tower-Soudan mine complex 
73.23 	in  support of a National Science  Foundation 
73.24 	grant building renovations at the International 
73.25 	Wolf Center.  This is a onetime  appropriation
73.26 	and is available until June 30, 2007.
73.27 	

73.28 	Sec. 15. EFFECTIVE DATE.
 73.29 	Unless otherwise specified, this article is effective the day following final enactment.

73.30 	ARTICLE 12
73.31 	CLEAN WATER LEGACY

73.32	Section 1. CLEAN WATER LEGACY APPROPRIATIONS.
 		
74.1 	The sums shown in the columns marked "APPROPRIATIONS" are appropriated 
74.2 	from the general fund to the agencies and for the purposes specified in this article.  Unless 
74.3 	otherwise specified, the appropriations in this article are available for the fiscal year 
74.4 	ending June 30, 2007. Appropriations in this article that are encumbered under contract, 
74.5 	including grant contracts, on or before June 30, 2007, are available until June 30, 2009. 
74.6 	All the appropriations in this article are onetime appropriations.
74.7 	Notwithstanding any other law enacted during the 2006 regular legislative session, 
74.8 	the maximum total general fund appropriation authorized for the purposes of this article 
74.9 	under all laws enacted during the 2006 regular legislative session is $20,000,000. Any 
74.10 	amounts appropriated from the general fund in any other law enacted during the 2006 
74.11 	regular legislative session that would cause the general fund appropriations to exceed 
74.12 	$20,000,000 are canceled.
74.13 	The appropriations in this article must be used to protect, restore, and preserve 
74.14 	the quality of Minnesota's surface waters. Allowable activities include surface water 
74.15 	assessments, program activities that target identified impairments, and development of 
74.16 	total maximum daily load studies (TMDL's) as required by section 303(d) of the federal 
74.17 	Clean Water Act, United States Code, title 33, section 1313(d), and applicable federal 
74.18 	regulations.

74.19	SUMMARY BY FUND
	
74.20					2007
		TOTAL
	
74.21	General
			$
	20,000,000
	$
	20,000,000

74.22				APPROPRIATIONS
	
74.23				Available for the Year
	
74.24				Ending June 30
	
74.25							2007

74.26	Sec. 2. POLLUTION CONTROL AGENCY
 			$
	5,030,000
	
74.27 	This appropriation may be spent for the 
74.28 	following purposes:

74.29
74.30	(a) Statewide assessment of surface water 
quality and trends
				1,860,000
	
74.31 	Up to $1,010,000 is available for grants or 
74.32 	contracts to support citizen monitoring of 
74.33 	surface waters.

75.1
75.2
75.3
75.4	(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
	
75.5 	Up to $1,740,000 is available for grants or 
75.6 	contracts to develop TMDL's.

75.7	Sec. 3. PUBLIC FACILITIES AUTHORITY
 				4,310,000
	
75.8 	This appropriation may be spent for the 
75.9 	following purposes and is available until 
75.10 	spent:

75.11	(a) Phosphorus reduction grants 
				2,000,000
	
75.12 	This appropriation is for phosphorus 
75.13 	reduction grants up to a maximum of 
75.14 	$500,000 per project.

75.15
75.16	(b) Small community wastewater treatment 
loans and grants
				1,000,000

75.17	(c) Wastewater, storm water, and TMDL grants
				1,310,000
	
75.18 	To the water pollution control revolving fund 
75.19 	under Minnesota Statutes, section 446A.07, 
75.20 	for wastewater treatment and storm water 
75.21 	projects and for total maximum daily load 
75.22 	grants under Minnesota Statutes, section 
75.23 	446A.073.

75.24	Sec. 4. AGRICULTURE DEPARTMENT
 				2,600,000
	
75.25 	This appropriation may be spent for the 
75.26 	following purposes:

75.27
75.28	(a) Agricultural best management practices loan 
program
				1,400,000
	
76.1 	For loans to producers and rural landowners. 
76.2 	This appropriation is available until spent. 
76.3 	$1,200,000 is available for pass-through 
76.4 	to local governments and lenders for 
76.5 	low-interest loans.

76.6	(b) Technical assistance
				800,000
	
76.7 	To expand technical assistance to producers 
76.8 	and conservation professionals on nutrient 
76.9 	and pasture management, target practices to 
76.10 	sources of water impairments, coordinate 
76.11 	federal and state farm conservation programs 
76.12 	to fully utilize federal conservation funds, 
76.13 	and expand conservation planning assistance 
76.14 	for producers.
76.15 	$210,000 is available for grants or contracts 
76.16 	to develop nutrient and conservation 
76.17 	planning assistance information materials.

76.18
76.19
76.20	(c) Research, evaluation, and effectiveness 
monitoring of agricultural practices in restoring 
impaired waters
				400,000

76.21
76.22	Sec. 5. BOARD OF WATER AND SOIL 
RESOURCES
 				5,930,000
	
76.23 	All of the money appropriated in this section 
76.24 	as grants to local governments shall be 
76.25 	administered through the Board of Water 
76.26 	and Soil Resources' local water resources 
76.27 	protection and management program under 
76.28 	Minnesota Statutes, section 103B.3369.
76.29 	This appropriation may be spent for the 
76.30 	following purposes:

76.31
76.32	(a) Targeted nonpoint restoration cost-share and 
incentive payments
				1,500,000
	
77.1 	Up to $1,400,000 is available for grants.

77.2
77.3
77.4	(b) Targeted nonpoint restoration technical, 
compliance, and engineering assistance 
activities
				2,000,000
	
77.5 	Up to $1,900,000 is available for grants.

77.6
77.7	(c) Reporting and evaluation of applied soil and 
water conservation practices
				200,000

77.8
77.9	(d) Grants to implement county individual 
sewage treatment system programs
				730,000

77.10
77.11
77.12	(e) Grants to support local nonpoint source 
protection activities related to lake and river 
protection and management
				1,500,000

77.13
77.14	Sec. 6. DEPARTMENT OF NATURAL 
RESOURCES
 				2,130,000
	
77.15 	This appropriation may be spent for the 
77.16 	following purposes:

77.17
77.18	(a) Statewide assessment of surface water 
quality and trends
				 280,000

77.19
77.20	(b) Acquire high priority, sensitive riparian 
lands
				1,000,000

77.21
77.22
77.23
77.24	(c) Forest stewardship planning and 
implementation; research, evaluation, and 
monitoring; and technical assistance to local 
units of government
				850,000

77.25 	ARTICLE 13
77.26 	ECONOMIC DEVELOPMENT

77.27 	Section 1. ECONOMIC DEVELOPMENT APPROPRIATIONS.
 78.1 	The sums shown in the columns marked "APPROPRIATIONS" are added to the 
78.2 	appropriations in Laws 2005, First Special Session chapter 1, article 3, or other law to the 
78.3 	agencies and for the purposes specified in this article.  The appropriations are from the 
78.4 	general fund or another named fund and are available for the fiscal years indicated for 
78.5 	each purpose. The figures "2006" and "2007" used in this article mean that the addition 
78.6 	to the appropriation listed under them is available for the fiscal year ending June 30, 
78.7 	2006, or June 30, 2007, respectively. "The first year" is fiscal year 2006. "The second 
78.8 	year" is fiscal year 2007. "The biennium" is fiscal years 2006 and 2007.  Supplementary 
78.9 	appropriations and reductions to appropriations for the fiscal year ending June 30, 2006, 
78.10 	are effective the day following final enactment.

78.11	SUMMARY BY FUND
	
78.12			2006
		2007
		TOTAL
	
78.13	General
	$
	1,750,000
	$
	2,850,000
	$
	4,600,000
	
78.14	Special Revenue
				300,000
		300,000
	
78.15	Workforce Development
		1,920,000
		2,170,000
		4,090,000
	
78.16	Petroleum Tank Cleanup
		450,000
		450,000
		900,000
	
78.17
78.18	Telecommunications 
Access
				240,000
		240,000
	
78.19	TOTAL
	$
	4,120,000
	$
	6,010,000
	$
	 10,130,000

78.20				APPROPRIATIONS
	
78.21				Available for the Year
	
78.22				Ending June 30
	
78.23					2006
		2007

78.24
78.25	Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

78.26	Subdivision 1.Total appropriation
 	$
	1,920,000
	$
	4,970,000
	
78.27 	This appropriation includes money for the 
78.28 	purposes in subdivisions 2 to 8.

78.29
78.30	Subd. 2.Business and community 
development
 				500,000
	
78.31 	For a grant to BioBusiness Alliance 
78.32 	of Minnesota for bioscience business 
79.1 	development programs that will work to grow 
79.2 	and create bioscience jobs in this state and 
79.3 	position Minnesota as a global biobusiness 
79.4 	leader. An annual report on the expenditure 
79.5 	of the appropriation must be submitted to 
79.6 	the senate Environment, Agriculture, and 
79.7 	Economic Development Budget Division, 
79.8 	and the house of representatives Jobs and 
79.9 	Economic Opportunity Policy and Finance 
79.10 	Committee by June 30 of each fiscal year 
79.11 	until the appropriation is expended. The 
79.12 	report must include the impact, if available, 
79.13 	of the subsidy on reducing consumer costs of 
79.14 	bioengineered products, and the jobs created, 
79.15 	including wages and benefits. This is a 
79.16 	onetime appropriation.

79.17	Subd.  3.Biotech partnership
 				2,000,000
	
79.18 	For direct and indirect expenses of the 
79.19 	collaborative research partnership between 
79.20 	the University of Minnesota and the Mayo 
79.21 	Foundation for research in biotechnology 
79.22 	and medical genomics. This is a onetime 
79.23 	appropriation. An annual report on the 
79.24 	expenditure of this appropriation must be 
79.25 	submitted to the governor and the chairs 
79.26 	of the senate Higher Education Budget 
79.27 	Division, the house of representatives 
79.28 	Higher Education Finance Committee, 
79.29 	the senate Environment, Agriculture, and 
79.30 	Economic Development Budget Division, 
79.31 	and the house of representatives Jobs and 
79.32 	Economic Opportunity Policy and Finance 
79.33 	Committee by June 30 of each fiscal year 
79.34 	until the appropriation is expended. The 
79.35 	report must include the impact, if available, 
80.1 	of the subsidy on reducing consumer costs 
80.2 	of bioengineered products and the jobs 
80.3 	created, including wages and benefits. This 
80.4 	appropriation is available until expended.

80.5
80.6	Subd.  4.Programs for persons with 
developmental and mental disabilities
 				150,000
	
80.7 	For a grant to Advocating Change Together. 
80.8 	The grant must be used to provide training, 
80.9 	technical assistance, and resource materials 
80.10 	to persons with developmental and mental 
80.11 	health disabilities. This appropriation 
80.12 	becomes part of the base appropriation 
80.13 	for the Department of Employment and 
80.14 	Economic Development.

80.15	Subd.  5.Wastewater treatment
 				100,000
	
80.16 	For a grant to the city of Cedar Mills for costs 
80.17 	it incurred in construction of a wastewater 
80.18 	treatment system for 28 properties. The 
80.19 	city must use the money to reduce its 
80.20 	indebtedness for additional costs of the 
80.21 	system that was not part of the originally 
80.22 	planned project and resulted in excessive 
80.23 	costs to homeowners. This is a onetime 
80.24 	appropriation.

80.25	Subd.  6.Pilot workforce program
 				250,000
	
80.26 	This appropriation is from the workforce 
80.27 	development fund for grants to the West 
80.28 	Central Initiative in Fergus Falls. These 
80.29 	grants must be used to implement and operate 
80.30 	Northern Connections, a pilot workforce 
80.31 	program that provides one-stop supportive 
80.32 	services to assist individuals as they transition 
80.33 	into the workforce. This appropriation is 
81.1 	available to the extent matched by $1 of 
81.2 	nonstate money for each $1 of state money. 
81.3 	This is a onetime appropriation.

81.4	Subd.  7.Summer youth employment
 		1,920,000
		1,920,000
	
81.5 	This appropriation is from the workforce 
81.6 	development fund for grants to fund summer 
81.7 	youth employment in Minneapolis. The 
81.8 	grants shall be used to fund up to 500 jobs for 
81.9 	youth each summer. Of this appropriation, 
81.10 	$250,000 the first year and $250,000 the 
81.11 	second year are for a grant to the learn-to-earn 
81.12 	summer youth employment program. The 
81.13 	commissioner shall establish criteria for 
81.14 	awarding the grants. This appropriation is 
81.15 	available in either year of the biennium and 
81.16 	is available until spent.

81.17	Subd.  8.Veterans' memorial
 				50,000
	
81.18 	For a grant to the city of Worthington for 
81.19 	the construction of a veterans' memorial in 
81.20 	Freedom Veterans' Memorial Park. This 
81.21 	appropriation is contingent upon the receipt 
81.22 	of local matching money on a $1 to $1 basis. 
81.23 	This is a onetime appropriation.

81.24	Sec. 3. DEPARTMENT OF COMMERCE
 		450,000
		450,000
	
81.25 	Notwithstanding Minnesota Statutes, section 
81.26 	115C.09, subdivision 2a, this appropriation 
81.27 	is from the petroleum tank release cleanup 
81.28 	fund for costs reimbursable under Minnesota 
81.29 	Statutes, section 115C.09, that were incurred 
81.30 	before January 1, 2004.

81.31	Sec. 4. HOUSING FINANCE AGENCY
 				300,000
	
82.1 	This appropriation is from the real estate 
82.2 	education, research, and recovery fund 
82.3 	under Minnesota Statutes, section 82.43, for 
82.4 	mortgage foreclosure prevention under the 
82.5 	homeownership education, counseling, and 
82.6 	training program under Minnesota Statutes, 
82.7 	section 462A.209.

82.8
82.9	Sec. 5. DEPARTMENT OF HUMAN 
SERVICES
 				240,000
	
82.10 	This appropriation is from the 
82.11 	telecommunications access Minnesota fund 
82.12 	under Minnesota Statutes, section 237.52, 
82.13 	to supplement the ongoing operational 
82.14 	expenses of the Commission Serving 
82.15 	Deaf and Hard-of-Hearing People. This 
82.16 	appropriation shall become part of base level 
82.17 	funding for the commission for the biennium 
82.18 	beginning July 1, 2007.

82.19	Sec. 6. BOXING COMMISSION
 				50,000
	
82.20 	To operate and administer the commission. 
82.21 	This appropriation is the annual base for 
82.22 	future years. This appropriation is contingent 
82.23 	upon enactment of new Minnesota Statutes, 
82.24 	sections 341.21 to 341.37.

82.25	Sec. 7. EXPLORE MINNESOTA TOURISM
 		1,750,000
			
82.26 	For a grant to the Minnesota Film and 
82.27 	TV Board for reimbursements of up to 15 
82.28 	percent of film production costs incurred in 
82.29 	Minnesota, under Minnesota Statutes, section 
82.30 	116J.543. This appropriation is available for 
82.31 	films that begin filming on or after May 1, 
82.32 	2006, and is available until June 30, 2007.

83.1 	Sec. 8. Laws 2005, First Special Session chapter 1, article 3, section 2, subdivision 4, 
83.2 	is amended to read:
83.3 	

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

83.5	Summary by Fund
	
83.6	General
	20,165,000
	20,165,000
	
83.7	Workforce  Development
	7,795,000
	7,995,000
	
83.8 	$4,864,000 the first year and  $4,864,000 the 
83.9 	second year are from the  general fund and 
83.10 	$7,420,000 the first  year and $7,420,000 
83.11 	the second year are  from the workforce 
83.12 	development fund for  extended employment 
83.13 	services for  persons with severe disabilities 
83.14 	or  related conditions under Minnesota  
83.15 	Statutes, section 268A.15.  Of the  amount 
83.16 	from the workforce development  fund, 
83.17 	$500,000 each year is onetime.  
83.18 	$1,690,000 the first year and  $1,690,000 
83.19 	the second year are from the  general 
83.20 	fund for grants under Minnesota  Statutes, 
83.21 	section 268A.11, for the  eight centers for 
83.22 	independent living.  Money not expended the 
83.23 	first year is  available the second year.  
83.24 	$150,000 the first year and $150,000  the 
83.25 	second year are from the general  fund 
83.26 	and $175,000 the first year and  $175,000 
83.27 	the second year are from the  workforce 
83.28 	development fund for grants  under Minnesota 
83.29 	Statutes, section  268A.03, to Rise, Inc. 
83.30 	for the  Minnesota Employment Center for 
83.31 	People  Who are Deaf or Hard-of-Hearing.  
83.32 	Money  not expended the first year is  available 
83.33 	the second year. Of the  amount from the 
84.1 	workforce development  fund, $150,000 each 
84.2 	year is onetime added to the budget base.  
84.3 	$1,000,000 the first year and  $1,000,000 
84.4 	the second year are from the  general fund 
84.5 	and $200,000 the first  year and $400,000 
84.6 	the second year are  from the workforce 
84.7 	development fund for  grants for programs 
84.8 	that provide  employment support services to 
84.9 	persons  with mental illness under Minnesota  
84.10 	Statutes, sections 268A.13 and  268A.14.  
84.11 	Up to $77,000 each year may  be used 
84.12 	for administrative and salary  expenses.  
84.13 	The appropriation from the  workforce 
84.14 	development fund is onetime.  
84.15 	$4,940,000 the first year and  $4,940,000 the 
84.16 	second year are from the  general fund for 
84.17 	state services for the  blind activities.  
84.18 	$7,521,000 the first year and  $7,521,000 the 
84.19 	second year are from the  general fund for the 
84.20 	state's vocational  rehabilitation program for 
84.21 	people with  significant disabilities to assist 
84.22 	with  employment, under Minnesota Statutes,  
84.23 	chapter 268A.  
84.24 	On or after July 1, 2005, the  commissioner 
84.25 	of finance shall cancel  the unencumbered 
84.26 	balance in the  contaminated site cleanup and  
84.27 	development account to the unrestricted  fund 
84.28 	balance in the general fund.  

84.29 	Sec. 9. Minnesota Statutes 2004, section 116J.543, is amended to read:
84.30 	116J.543 FILM PRODUCTION JOBS PROGRAM.
84.31 	(a) The film production jobs program is created. The program shall be operated 
84.32 	by the Minnesota Film and TV Board with administrative oversight and control by the 
84.33 	commissioner of employment and economic development. The program shall make 
84.34 	payment to producers of long-form and narrative film productions feature films, national 
85.1 	television programs, documentaries, music videos, and commercials  that directly create 
85.2 	new film jobs in Minnesota. To be eligible for a payment, a producer must submit 
85.3 	documentation to the Minnesota Film and TV Board of expenditures for wages for work 
85.4 	on new film production jobs in Minnesota by resident Minnesotans. The film jobs include 
85.5 	work such as technical crews, acting talent, set construction, soundstage or equipment 
85.6 	rental, local postproduction film processing, and other film production jobs production 
85.7 	costs incurred in Minnesota that are directly attributable to the production in Minnesota of 
85.8 	a film product.
85.9 	The Minnesota Film and TV Board must shall make recommendations to the 
85.10 	commissioner about program payment, but the recommendations are not binding and
85.11 	the commissioner has the authority to make the final determination on payments. The 
85.12 	commissioner's determination must be based on the amount of wages documented to the 
85.13 	Film Board and the likelihood that the payment will lead to further documentable wage 
85.14 	payments. Payment may not exceed $100,000 for a single long-form and narrative film
85.15 	proper documentation of eligible production costs submitted for payments. No more than 
85.16 	five percent of the funds appropriated for the program in any year may be expended for 
85.17 	administration. Individual feature film projects shooting on or after January 1, 1997, will 
85.18 	be eligible for fund allocations.
85.19 	(b) For the purposes of this section:
85.20 	(1) "production costs" means the cost of the following:
85.21 	(i) a story and scenario to be used for a film;
85.22 	(ii) salaries of talent, management, and labor, including payments to personal 
85.23 	services corporations for the services of a performing artist;
85.24 	(iii) set construction and operations, wardrobe, accessories, and related services;
85.25 	(iv) photography, sound synchronization, lighting, and related services;
85.26 	(v) editing and related services;
85.27 	(vi) rental of facilities and equipment; or
85.28 	(vii) other direct costs of producing the film in accordance with generally accepted 
85.29 	entertainment industry practice; and
85.30 	(2) "film" means a movie, television show, documentary, music video, or television 
85.31 	commercial, whether on film or video. Film does not include news, current events, public 
85.32 	programming, or a program that includes weather or market reports; a talk show; a 
85.33 	production with respect to a questionnaire or contest; a sports event or sports activity; a 
85.34 	gala presentation or awards show; a finished production that solicits funds; or a production 
85.35 	for which the production company is required under United States Code, title 18, section 
86.1 	2257, to maintain records with respect to a performer portrayed in a single-media or 
86.2 	multimedia program.

86.3 	Sec. 10. Minnesota Statutes 2005 Supplement, section 116J.551, subdivision 1, is 
86.4 	amended to read:
86.5 		Subdivision 1.Grant account. A contaminated site cleanup and development grant 
86.6 	account is created in the general fund. Money in the account may be used, as appropriated 
86.7 	by law, to make grants as provided in section 116J.554 and to pay for the commissioner's 
86.8 	costs in reviewing applications and making grants. Notwithstanding section 16A.28,
86.9 	money appropriated to the account is available for four years grant money appropriated 
86.10 	for this program, from any source, is available until spent.

86.11 	Sec. 11. [116J.656] SMALL BUSINESS ACCESS TO FEDERAL RESEARCH 
86.12 	FUNDS.
86.13 	(a) The commissioner shall assist small businesses to access federal money through 
86.14 	the federal Small Business Innovation Research program and the Small Business 
86.15 	Technology Transfer program. In providing this assistance, the commissioner shall 
86.16 	maintain connections to eligible federal programs, assess specific funding opportunities, 
86.17 	review funding proposals, provide referrals to specific consulting services, and hold 
86.18 	training workshops throughout the state. 
86.19 	(b) Unless prohibited by federal law, the commissioner must implement fees for 
86.20 	services that help companies seek federal Phase II Small Business Innovation Research 
86.21 	grants. The fees must be deposited in a special revenue account and are annually 
86.22 	appropriated to the commissioner for the Small Business Innovation Research and Small 
86.23 	Business Technology Transfer programs.

86.24 	Sec. 12. Minnesota Statutes 2004, section 326.105, is amended to read:
86.25 	326.105 FEES.
86.26 	The fee for licensure or renewal of licensure as an architect, professional engineer, 
86.27 	land surveyor, landscape architect, or geoscience professional is $120 per biennium. 
86.28 	The fee for certification as a certified interior designer or for renewal of the certificate 
86.29 	is $120 per biennium. The fee for an architect applying for original certification as a 
86.30 	certified interior designer is $50 per biennium. The initial license or certification fee for 
86.31 	all professions is $120. The renewal fee shall be paid biennially on or before June 30 of 
86.32 	each even-numbered year. The renewal fee, when paid by mail, is not timely paid unless it 
87.1 	is postmarked on or before June 30 of each even-numbered year. The application fee is 
87.2 	$25 for in-training applicants and $75 for professional license applicants.
87.3 	The fee for monitoring licensing examinations for applicants is $25, payable by 
87.4 	the applicant.

87.5 	Sec. 13. [341.21] DEFINITIONS.
87.6 		Subdivision 1.Applicability. The definitions in this section apply to this chapter.
87.7 		Subd. 2.Boxing. "Boxing" means the act of attack and defense with the fists, using 
87.8 	padded gloves, that is practiced as a sport under the rules of the World Boxing Association, 
87.9 	the World Boxing Council, the International Boxing Federation, or equivalent. Where 
87.10 	applicable, boxing includes full contact karate.
87.11 		Subd. 3.Commission. "Commission" means the Minnesota Boxing Commission.
87.12 		Subd. 4.Contest. "Contest" means any boxing or nontraditional fighting contest, 
87.13 	match, or exhibition.
87.14 		Subd. 5.Nontraditional fighting contest. "Nontraditional fighting contest" means 
87.15 	any competition between two or more persons, with or without gloves, who use any 
87.16 	combination of fighting skills, including boxing, wrestling, hitting, kicking, martial arts, 
87.17 	and other combative full contact techniques. Nontraditional fighting contests include, but 
87.18 	are not limited to, ultimate fighting, extreme fighting, elimination contests, cage fighting, 
87.19 	mixed martial arts fighting, tough man contests, shoot fighting, but do not include kick 
87.20 	boxing or any recognized martial arts competition.
87.21 		Subd. 6.Professional. "Professional" means any person who competes for any 
87.22 	money prize or a prize that exceeds the value of $50 or teaches, pursues, or assists in 
87.23 	the practice of boxing or nontraditional fighting as a means of obtaining a livelihood 
87.24 	or pecuniary gain.
87.25 		Subd. 7.Director. "Director" means the executive director of the commission.
87.26 		Subd. 8.Tough man contest. "Tough man contest" means any boxing match 
87.27 	consisting of one-minute rounds between two or more persons who use their hands, 
87.28 	wearing padded gloves that weigh not less than 12 ounces, or their feet, or both, in any 
87.29 	manner. Tough man contest does not include kick boxing, any recognized martial arts 
87.30 	competition, or boxing as defined in subdivision 2.

87.31 	Sec. 14. [341.22] BOXING COMMISSION.
87.32 	There is created the Minnesota Boxing Commission consisting of seven members 
87.33 	who are citizens of this state. Three members of the commission must be retired judges 
87.34 	of the Minnesota district court, Minnesota Court of Appeals, Minnesota Supreme Court, 
88.1 	the United States District Court for the District of Minnesota, or the Eighth Circuit Court 
88.2 	of Appeals; two members must be licensed medical doctors; and two members must 
88.3 	be boxers. No member may fulfill more than one of these requirements at the same 
88.4 	time. Membership terms, compensation of members, removal of members, the filling of 
88.5 	membership vacancies, and fiscal year and reporting requirements must be as provided 
88.6 	in sections 214.07 to 214.09. The provision of staff, administrative services, and office 
88.7 	space; the review and processing of complaints; the setting of fees; and other provisions 
88.8 	relating to commission operations must be as provided in chapter 214.

88.9 	Sec. 15. [341.23] LIMITATIONS.
88.10 	No member of the Boxing Commission may directly or indirectly promote a boxing 
88.11 	or nontraditional fighting contest, or directly or indirectly engage in the managing of a 
88.12 	boxer or fighter, or have an interest in any manner in the proceeds from a boxing match or 
88.13 	nontraditional fighting contest.

88.14 	Sec. 16. [341.24] EXECUTIVE DIRECTOR.
88.15 	The commission may appoint, and at its pleasure remove, an executive director and 
88.16 	prescribe the powers and duties of the office. The executive director is not a member of 
88.17 	the commission. The commission may employ personnel necessary to the performance of 
88.18 	its duties.

88.19 	Sec. 17. [341.25] RULES.
88.20 	(a) The commission may adopt rules that include standards for the physical 
88.21 	examination and condition of boxers, nontraditional fighters, and referees.
88.22 	(b) The commission may adopt other rules necessary to carry out the purposes of this 
88.23 	chapter, including, but not limited to, the conduct of boxing exhibitions, bouts, fights, and 
88.24 	nontraditional fighting contests and events, and their manner, supervision, time, and place.

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

88.29 	Sec. 19. [341.27] COMMISSION DUTIES.
88.30 	The commission shall:
88.31 	(1) issue, deny, renew, suspend, or revoke licenses;
89.1 	(2) make and maintain records of its acts and proceedings including the issuance, 
89.2 	denial, renewal, suspension, or revocation of licenses;
89.3 	(3) keep public records of the commission open to inspection at all reasonable times;
89.4 	(4) assist the director in the development of rules to be implemented under this 
89.5 	chapter; and
89.6 	(5) conform to the rules adopted under this chapter.

89.7 	Sec. 20. [341.28] REGULATION OF BOXING AND NONTRADITIONAL 
89.8 	FIGHTING CONTESTS.
89.9 		Subdivision 1.Regulatory authority; boxing. All boxing contests are subject to 
89.10 	this chapter. Every contestant in a boxing contest shall wear padded gloves that weigh at 
89.11 	least eight ounces. The commission shall, for every boxing contest:
89.12 	(1) direct a commission member to be present; and
89.13 	(2) direct the attending commission member to make a written report of the contest.
89.14 	All boxing contests must be conducted according to the provisions of this chapter.
89.15 		Subd. 2.Regulatory authority; tough man contests. All tough man contests, 
89.16 	including amateur tough man contests, are subject to this chapter. Every contestant in a 
89.17 	tough man contest shall wear padded gloves that weight at least 12 ounces.
89.18 		Subd. 3.Regulatory authority; nontraditional fighting. All nontraditional 
89.19 	fighting, including amateur nontraditional fighting contests, is subject to this chapter and 
89.20 	the rules adopted by the commission. Contestants in nontraditional fighting contests shall 
89.21 	not strike other contestants in the spinal column or in the back of the head, and shall not 
89.22 	strike with their knees or elbows.

89.23 	Sec. 21. [341.29] JURISDICTION OF COMMISSION.
89.24 	The commission shall:
89.25 	(1) have sole direction, supervision, regulation, control, and jurisdiction over all 
89.26 	boxing contests, tough man contests, and nontraditional fighting contests held within this 
89.27 	state unless a contest is exempt from the application of this chapter under federal law;
89.28 	(2) have sole control, authority, and jurisdiction over all licenses required by this 
89.29 	chapter; and 
89.30 	(3) grant a license to an applicant if, in the judgment of the commission, the financial 
89.31 	responsibility, experience, character, and general fitness of the applicant are consistent 
89.32 	with the public interest, convenience, or necessity and the best interests of boxing and 
89.33 	conforms with this chapter and the commission's rules.

90.1 	Sec. 22. [341.30] LICENSURE; PERSONS REQUIRED TO OBTAIN 
90.2 	LICENSES; REQUIREMENTS; BACKGROUND INFORMATION; FEE; BOND.
90.3 		Subdivision 1.Licensure; individuals. All referees, judges, matchmakers, 
90.4 	promoters, trainers, ring announcers, timekeepers, ringside physicians, boxers, 
90.5 	nontraditional fighters, boxers' managers, and boxers' seconds are required to be licensed 
90.6 	by the commission. The commission shall not permit any of these persons to participate 
90.7 	in the holding or conduct of any boxing contest unless the commission has first issued 
90.8 	the person a license.
90.9 		Subd. 2.Entity licensure. Before participating in the holding or conduct of any 
90.10 	boxing or nontraditional fighting contest, a corporation, partnership, limited liability 
90.11 	company, or other business entity organized and existing under law, its officers and 
90.12 	directors, and any person holding 25 percent or more of the ownership of the corporation 
90.13 	shall obtain a license from the commission and must be authorized to do business under 
90.14 	the laws of this state.
90.15 		Subd. 3.Background investigation. The commission shall require referees, 
90.16 	judges, matchmakers, promoters, boxers, and nontraditional fighters' managers to furnish 
90.17 	fingerprints and background information under commission rules before licensure. The 
90.18 	commission shall charge a fee for receiving fingerprints and background information 
90.19 	in an amount determined by the commission. The commission may require referees, 
90.20 	judges, matchmakers, promoters, boxers, and nontraditional fighters' managers to furnish 
90.21 	fingerprints and background information before license renewal. The fee may include a 
90.22 	reasonable charge for expenses incurred by the commission or the Department of Public 
90.23 	Safety. For this purpose, the commission and the Department of Public Safety may enter 
90.24 	into an interagency agreement.
90.25 		Subd. 4.Prelicensure requirements. (a) Before the commission issues a license to 
90.26 	a promoter, matchmaker, corporation, or other business entity, the applicant shall:
90.27 	(1) provide the commission with a copy of any agreement between a contestant and 
90.28 	the applicant that binds the applicant to pay the contestant a certain fixed fee or percentage 
90.29 	of the gate receipts;
90.30 	(2) show on the application the owner or owners of the applicant entity and the 
90.31 	percentage of interest held by each owner holding a 25 percent or more interest in the 
90.32 	applicant;
90.33 	(3) provide the commission with a copy of the latest financial statement of the 
90.34 	entity; and
90.35 	(4) provide the commission with a copy or other proof acceptable to the commission 
90.36 	of the insurance contract or policy required by this chapter.
91.1 	(b) Before the commission issues a license to a promoter, the applicant shall deposit 
91.2 	with the commission a cash bond or surety bond in an amount set by the commission. 
91.3 	The bond shall be executed in favor of this state and shall be conditioned on the faithful 
91.4 	performance by the promoter of the promoter's obligations under this chapter and the 
91.5 	rules adopted under it.
91.6 	(c) Before the commission issues a license to a boxer or nontraditional fighter, the 
91.7 	applicant shall submit to the commission the results of a current medical examination on 
91.8 	forms furnished or approved by the commission. The medical examination must include 
91.9 	an ophthalmological and neurological examination. The ophthalmological examination 
91.10 	must be designed to detect any retinal defects or other damage or condition of the 
91.11 	eye that could be aggravated by boxing or nontraditional fighting. The neurological 
91.12 	examination must include an electroencephalogram or medically superior test if the 
91.13 	boxer or nontraditional fighter has been knocked unconscious in a previous boxing, 
91.14 	nontraditional fighting, or other athletic competition. The commission may also order an 
91.15 	electroencephalogram or other appropriate neurological or physical examination before 
91.16 	any contest, match, or exhibition if it determines that the examination is desirable to 
91.17 	protect the health of the boxer or nontraditional fighter.

91.18 	Sec. 23. [341.31] SIMULCAST LICENSES.
91.19 	The commission shall issue a license to a person or organization holding, showing, 
91.20 	or exhibiting a simultaneous telecast of any live, current, or spontaneous boxing or 
91.21 	sparring match or nontraditional fighting exhibition or performance on a closed circuit 
91.22 	telecast or subscription television program viewed within the state, whether originating 
91.23 	in this state or elsewhere, and for which a charge is made. Each person or organization 
91.24 	shall apply for such a license in advance of each showing. No showing may be licensed 
91.25 	unless the person or organization applying for the license: 
91.26 	(1) certifies that the match is subject to the jurisdiction and regulation of a boxing or 
91.27 	athletic regulatory authority in another state or country; 
91.28 	(2) certifies the match is in compliance with the requirements of the authority; 
91.29 	(3) identifies the authority; and 
91.30 	(4) provides any information the commission may require.

91.31 	Sec. 24. [341.32] LICENSE FEES; EXPIRATION; RENEWAL.
91.32 		Subdivision 1.Annual licensure. The commission may establish and issue annual 
91.33 	licenses subject to the collection of advance fees by the commission for promoters, 
91.34 	matchmakers, managers, judges, referees, ring announcers, ringside physicians, 
92.1 	timekeepers, boxers, nontraditional fighters, boxers' trainers, boxers' seconds, business 
92.2 	entities filing for a license to participate in the holding of any boxing contest, and officers, 
92.3 	directors, or other persons affiliated with the business entity.
92.4 		Subd. 2.Expiration and renewal. A license expires December 31 at midnight in 
92.5 	the year of its issuance and may be renewed by filing an application for renewal with the 
92.6 	commission and payment of the license fee. An application for a license and renewal of a 
92.7 	license must be on a form provided by the commission. There is a 30-day grace period 
92.8 	during which a license may be renewed if a late filing penalty fee equal to the license fee 
92.9 	is submitted with the regular license fee. A licensee that files late shall not conduct any 
92.10 	activity regulated by this chapter until the commission has renewed the license. If the 
92.11 	licensee fails to apply to the commission within the 30-day grace period, the licensee must 
92.12 	apply for a new license under subdivision 1.

92.13 	Sec. 25. [341.33] CONTESTANTS AND REFEREES; PHYSICAL 
92.14 	EXAMINATION; ATTENDANCE OF PHYSICIAN; PAYMENT OF FEES; 
92.15 	INSURANCE.
92.16 		Subdivision 1.Examination by physician. All boxers, nontraditional fighters, 
92.17 	and referees shall be examined by a physician licensed by this state within three hours 
92.18 	before entering the ring, and the examining physician shall immediately file with the 
92.19 	commission a written report of the examination. The physician's examination shall report 
92.20 	on the condition of the boxer's heart and general physical and neurological condition. The 
92.21 	physician's report may record the condition of the boxer's nervous system and brain as 
92.22 	required by the commission. The physician may prohibit the boxer from entering the ring 
92.23 	if, in the physician's professional opinion, it is in the best interest of the boxer's health. 
92.24 	The cost of the examination is payable by the person or entity conducting the contest 
92.25 	or exhibition.
92.26 		Subd. 2.Attendance of physician. A person holding or sponsoring a boxing or 
92.27 	nontraditional fighting contest shall have in attendance a physician licensed by this state. 
92.28 	The commission may establish a schedule of fees to be paid to each attending physician 
92.29 	by the person holding or sponsoring the contest.

92.30 	Sec. 26. [341.34] INSURANCE.
92.31 		Subdivision 1.Required insurance. The commission shall:
92.32 	(1) require insurance coverage for a boxer or nontraditional fighter to provide 
92.33 	for medical, surgical, and hospital care for injuries sustained in the ring in an amount 
93.1 	of $100,000 with $25 deductible and payable to the boxer or nontraditional fighter as 
93.2 	beneficiary; and
93.3 	(2) require life insurance for a boxer or nontraditional fighter in the amount of 
93.4 	$50,000 payable in case of accidental death resulting from injuries sustained in the ring.
93.5 		Subd. 2.Payment for insurance. The cost of the insurance required by this section 
93.6 	is payable by the promoter.

93.7 	Sec. 27. [341.35] PENALTIES FOR NONLICENSED EXHIBITIONS.
93.8 	Any person or persons who send or cause to be sent, published, or otherwise made 
93.9 	known, any challenge to fight what is commonly known as a prize fight, or engage in any 
93.10 	public boxing or sparring match, or nontraditional exhibition or contest, with or without 
93.11 	gloves, for any prize, reward, or compensation, or for which any admission fee is charged 
93.12 	directly or indirectly, or go into training preparatory for the fight, exhibition, or contest, 
93.13 	or act as a trainer, aider, abettor, backer, umpire, referee, second, surgeon, assistant, or 
93.14 	attendant at the fight, exhibition, or contest, or in any preparation for same, and any owner 
93.15 	or lessee of any ground, building, or structure of any kind permitting the same to be 
93.16 	used for any fight, exhibition, or contest, is guilty of a misdemeanor unless a license 
93.17 	for the holding of the fight, exhibition, or contest has been issued by the commission in 
93.18 	compliance with the rules adopted by it.

93.19 	Sec. 28. [341.37] APPROPRIATION.
93.20 	A Boxing Commission account is created in the special revenue fund. Money in 
93.21 	the account is annually appropriated to the Boxing Commission for the purposes of 
93.22 	conducting its statutory responsibilities and obligations. 

93.23 	ARTICLE 14
93.24 	TRANSPORTATION

93.25 	Section 1. TRANSPORTATION APPROPRIATIONS.
 93.26 	The sums shown in the columns marked "APPROPRIATIONS" are added to 
93.27 	the appropriations in Laws 2005, First Special Session chapter 6, article 1, or other 
93.28 	specified law, to the named agencies and for the specified purposes. The sums shown are 
93.29 	appropriated from the general fund, or another named fund, to be available for the fiscal 
93.30 	years indicated for each purpose. The figures "2006" and "2007" used in this article mean 
93.31 	that the appropriation or appropriations listed under them are available for the fiscal year 
93.32 	ending June 30, 2006, or June 30, 2007, respectively. Appropriations in this article for the 
93.33 	fiscal year ending June 30, 2006, are effective the day following final enactment.

94.1	SUMMARY BY FUND
	
94.2			2006
		2007
		TOTAL
	
94.3	General
	$
	-0-
	$
	4,320,000
	$
	4,320,000

94.4				APPROPRIATIONS
	
94.5				Available for the Year
	
94.6				Ending June 30
	
94.7					2006
		2007
	
94.8				$
		$

94.9	Sec. 2. TRANSPORTATION
 		-0-
		1,880,000
	
94.10 	This onetime appropriation includes money 
94.11 	for the following purposes:

94.12	(a) Town road sign replacement program
				1,500,000
	
94.13 	To implement the town road sign replacement 
94.14 	program established in Laws 2005, First 
94.15 	Special Session chapter 6, article 3, section 
94.16 	89. For the purpose of this appropriation, 
94.17 	implementation includes the purchase and 
94.18 	installation of new signs. This appropriation 
94.19 	may be used to satisfy any local matching 
94.20 	requirement for the receipt of federal 
94.21 	funds. This appropriation is available until 
94.22 	expended. 

94.23
94.24	(b) Department of Transportation radio 
tower
				380,000
	
94.25 	To design and construct a new radio tower 
94.26 	in Roseau County. This appropriation is 
94.27 	available until expended.

94.28	Sec. 3. METROPOLITAN COUNCIL
 				2,040,000
	
94.29 	This onetime appropriation includes money 
94.30 	for the following purposes:

95.1	(a) Bus transit
				1,540,000
	
95.2 	For bus system operations.

95.3	(b) Light rail transit feasibility study
				500,000
	
95.4 	For a study of and report on the feasibility 
95.5 	of the use of light rail transit in the marked 
95.6 	Interstate Highway 394 corridor between 
95.7 	downtown Minneapolis and Ridgedale 
95.8 	Drive in Minnetonka, with the alternative 
95.9 	of extending to Wayzata. The Metropolitan 
95.10 	Council may hire a consultant to assist in the 
95.11 	study and report.
95.12 	The light rail transit feasibility study shall 
95.13 	include, without limitation: 
95.14 	(1) an identification of major operational 
95.15 	characteristics of light rail transit in the 
95.16 	corridor;
95.17 	(2) a quantification of capital and operating 
95.18 	costs;
95.19 	(3) an evaluation of the interface of the light 
95.20 	rail transit system with other transportation 
95.21 	systems in the corridor;
95.22 	(4) an evaluation of the impact of the light 
95.23 	rail transit system on land-use and urban 
95.24 	development;
95.25 	(5) an estimate of the cost and impact of 
95.26 	necessary associated exercise of eminent 
95.27 	domain;
95.28 	(6) an evaluation of the impact of the 
95.29 	light rail transit system on energy and the 
95.30 	environment;
96.1 	(7) a comparison of the light rail transit 
96.2 	system with multipassenger alternatives such 
96.3 	as buses and carpools;
96.4 	(8) an estimate of ridership potential;
96.5 	(9) a cost-benefit analysis that compares the 
96.6 	total cost of the project with the benefits of 
96.7 	the light rail transit line to its users, other 
96.8 	users of the highway, and adjacent property 
96.9 	owners;
96.10 	(10) an identification of potential sources of 
96.11 	federal, state, local, private, and other funds; 
96.12 	and
96.13 	(11) an identification of the conditions 
96.14 	necessary for light rail transit to be feasible in 
96.15 	the marked Interstate Highway 394 corridor.

96.16	Sec. 4. STATE PATROL
 				400,000
	
96.17 	For purchase of automated external 
96.18 	defibrillators for State Patrol vehicles. This 
96.19 	is a onetime appropriation.

96.20 	Sec. 5. EFFECTIVE DATE.
 96.21 	This article is effective the day following final enactment.

96.22 	ARTICLE 15
96.23 	PUBLIC SAFETY

96.24	Section 1. PUBLIC SAFETY APPROPRIATIONS.
 	
96.25 	The sums shown in the columns marked "APPROPRIATIONS" are added to the 
96.26 	appropriations in Laws 2005, chapter 136, article 1, or other law to the agencies and for 
96.27 	the purposes specified in this article.  The appropriations are from the general fund or 
96.28 	another named fund and are available for the fiscal years indicated for each purpose.  The 
96.29 	figures "2006" and "2007" used in this article mean that the addition to the appropriation 
96.30 	listed under them is available for the fiscal year ending June 30, 2006, or June 30, 
96.31 	2007, respectively. "The first year" is fiscal year 2006. "The second year" is fiscal year 
97.1 	2007. "The biennium" is fiscal years 2006 and 2007.  Supplementary appropriations and 
97.2 	reductions to appropriations for the fiscal year ending June 30, 2006, are effective the 
97.3 	day following final enactment.

97.4	SUMMARY BY FUND
	
97.5			2006
		2007
		TOTAL
	
97.6	General
	$
	3,562,000
	$
	6,650,000
	$
	10,212,000
	
97.7	Special Revenue
		-0-
		200,000
		200,000
	
97.8	TOTAL
	$
	3,562,000
	$
	6,850,000
	$
	10,412,000

97.9				APPROPRIATIONS
	
97.10				Available for the Year
	
97.11				Ending June 30
	
97.12					2006
		2007

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

97.14	AOD offenders
					
97.15 	For the first phase of a judicial initiative 
97.16 	to more effectively address the increasing 
97.17 	numbers of alcohol and other drug (AOD) 
97.18 	offenders coming into Minnesota courts, 
97.19 	including the increase in methamphetamine 
97.20 	offenders. This is a onetime appropriation. 
97.21 	Of this amount:
97.22 	(1) $300,000 is for a study to recommend a 
97.23 	more uniform and cost-effective structure 
97.24 	for creating statewide applications of the 
97.25 	problem-solving court model;
97.26 	(2) $100,000 is to augment treatment services 
97.27 	for problem-solving courts; and 
97.28 	(3) $200,000 is for development of a 
97.29 	multicounty pilot problem-solving court.

97.30
97.31	Sec. 3.  BOARD ON JUDICIAL 
STANDARDS
 		172,000
		-0-

98.1	Special hearings
					
98.2 	For costs of special hearings and an 
98.3 	investigation regarding complaints of judicial 
98.4 	misconduct. This is a onetime appropriation 
98.5 	and is available until June 30, 2007.

98.6	Sec. 4.  BOARD OF PUBLIC DEFENSE
 		-0-
		60,000

98.7	Appellate transcripts
					
98.8 	For additional costs associated with appellate 
98.9 	transcripts.

98.10	Sec. 5. PUBLIC SAFETY

98.11	Subdivision 1.Total appropriation
 		177,000
		2,160,000
	
98.12 	These appropriations are added to the 
98.13 	appropriations in Laws 2005, chapter 136, 
98.14 	article 1, section 9. The amounts that may 
98.15 	be spent from these appropriations for each 
98.16 	program are specified in subdivisions 2 to 4.

98.17	Subd.  2.Emergency management 

98.18	 Extraordinarily hazardous substances
		-0-
		60,000
	
98.19 	To implement the changes made in this article 
98.20 	to Minnesota Statutes, chapter 115E, relating 
98.21 	to extraordinarily hazardous substances. 

98.22	Subd.  3.Criminal apprehension

98.23	(a) Predatory offender database
		-0-
		125,000
	
98.24 	To enhance the predatory offender database 
98.25 	to facilitate notification of noncompliant sex 
98.26 	offenders on the Internet. The base budget 
98.27 	for this activity is $116,000 in fiscal year 
98.28 	2008 and fiscal year 2009.

99.1
99.2	(b) Missing persons and unidentified bodies 
backlog
		-0-
		100,000
	
99.3 	To address the missing persons and 
99.4 	unidentified bodies backlog. This is a 
99.5 	onetime appropriation.
99.6 	The superintendent shall coordinate with 
99.7 	federal and local units of government; 
99.8 	federal, state, and local law enforcement 
99.9 	agencies; medical examiners; coroners; 
99.10 	odontologists; and other entities to reduce 
99.11 	the state's reporting, data entry, and 
99.12 	record-keeping backlog relating to missing 
99.13 	persons and unidentified bodies. To the 
99.14 	degree feasible, the superintendent shall 
99.15 	ensure that all necessary data and samples, 
99.16 	including, but not limited to, DNA samples 
99.17 	and dental records get entered into all 
99.18 	relevant federal and state databases.
99.19 	By February 1, 2007, the superintendent shall 
99.20 	report to the chairs and ranking minority 
99.21 	members of the senate and house committees 
99.22 	and divisions having jurisdiction over 
99.23 	criminal justice policy and funding on the 
99.24 	efforts to reduce the state's backlog. The 
99.25 	report must give detailed information on how 
99.26 	this appropriation was spent and how this 
99.27 	affected the backlog. In addition, the report 
99.28 	must make recommendations for changes 
99.29 	to state law, including suggested legislative 
99.30 	language, to improve reporting, data entry, 
99.31 	and record keeping relating to future cases 
99.32 	involving missing persons and unidentified 
99.33 	bodies.

99.34	(c) Missing adults model policy
					
100.1 	The superintendent, in consultation with 
100.2 	the Minnesota Sheriffs Association and the 
100.3 	Minnesota Chiefs of Police Association, 
100.4 	shall develop a model policy to address law 
100.5 	enforcement efforts and duties regarding 
100.6 	missing adults and provide training to local 
100.7 	law enforcement agencies on this model 
100.8 	policy. 
100.9 	By February 1, 2007, the superintendent shall 
100.10 	report to the chairs and ranking minority 
100.11 	members of the senate and house committees 
100.12 	and divisions having jurisdiction over 
100.13 	criminal justice policy and funding on the 
100.14 	model policy and training.

100.15	Subd. 4.Office of justice programs

100.16	(a) Gang strike force and narcotic task forces
		-0-
		800,000
	
100.17 	For expanded operations of the criminal gang 
100.18 	strike force and narcotics task forces. This 
100.19 	money is to be used to expand the activities 
100.20 	of the criminal gang strike force and narcotics 
100.21 	task forces to include investigations of gang 
100.22 	or narcotics-related human trafficking and 
100.23 	domestic or international drug trafficking 
100.24 	cases. This appropriation must be used to 
100.25 	increase the complement of individuals 
100.26 	assigned to the criminal gang strike force and 
100.27 	narcotics task forces throughout the state.

100.28
100.29	(b) Safe harbor for sexually exploited youth 
pilot project
		-0-
		98,000
	
100.30 	For a grant to Ramsey County to implement 
100.31 	the safe harbor for sexually exploited youth 
100.32 	pilot project. The project must develop a 
100.33 	victim services model to address the needs 
101.1 	of sexually exploited youth. The project 
101.2 	must focus on intervention and prevention 
101.3 	methods; training for law enforcement, 
101.4 	educators, social services providers, health 
101.5 	care workers, advocates, court officials, 
101.6 	prosecutors, and public defenders; and 
101.7 	programs promoting positive outcomes 
101.8 	for victims. The project must include 
101.9 	development and implementation of a 
101.10 	statewide model protocol for intervention 
101.11 	and response methods for professionals, 
101.12 	individuals, and agencies that may encounter 
101.13 	sexually exploited youth. "Sexually 
101.14 	exploited youth" include juvenile runaways, 
101.15 	truants, and victims of criminal sexual 
101.16 	conduct, prostitution, labor trafficking, sex 
101.17 	trafficking, domestic abuse, and assault. This 
101.18 	is a onetime appropriation. 
101.19 	By January 15, 2008, Ramsey County shall 
101.20 	report to the chairs and ranking minority 
101.21 	members of the senate and house committees 
101.22 	and divisions having jurisdiction over 
101.23 	criminal justice funding and policy on the 
101.24 	results of the pilot project. 

101.25	(c) Human trafficking task force and plan
		-0-
		75,000
	
101.26 	To implement Minnesota Statutes, sections 
101.27 	299A.78 to 299A.7955, relating to the human 
101.28 	trafficking task force and plan. This is a 
101.29 	onetime appropriation.

101.30	(d) Legal advocacy trafficking victims
		-0-
		60,000
	
101.31 	For grants to three weekly clinics in 
101.32 	Hennepin County that are staffed by 
101.33 	attorneys from a nonprofit organization that 
102.1 	provides free legal services to immigrants. 
102.2 	This is a onetime appropriation.

102.3	(e) Toll-free hotline
		-0-
		35,000
	
102.4 	To implement the toll-free hotline for 
102.5 	trafficking victims described in Minnesota 
102.6 	Statutes, section 299A.7957. The base 
102.7 	budget for this activity is $15,000 in fiscal 
102.8 	year 2008 and fiscal year 2009.

102.9	(f) Youth intervention programs
		-0-
		200,000
	
102.10 	For youth intervention programs under 
102.11 	Minnesota Statutes, section 299A.73. 
102.12 	This money must be used to help existing 
102.13 	programs serve unmet needs in communities 
102.14 	and to create new programs in underserved 
102.15 	areas of the state. This appropriation is added 
102.16 	to the program's base budget and is available 
102.17 	until spent.

102.18	(g) Crime victim support grant
		-0-
		150,000
	
102.19 	For a grant to a private, nonprofit 
102.20 	organization dedicated to providing 
102.21 	immediate and long-term emotional support 
102.22 	and practical help for the families and friends 
102.23 	of individuals who have died by homicide, 
102.24 	suicide, or accident. This is a onetime 
102.25 	appropriation.

102.26	(h) Minneapolis Security Collaborative
		-0-
		180,000
	
102.27 	For a grant to the city of Minneapolis. This 
102.28 	grant money is to be used by the Minneapolis 
102.29 	Police Department to expand the worksite 
102.30 	system throughout the city that supports the 
102.31 	downtown security collaborative currently in 
102.32 	use in the city's first precinct. The city shall 
103.1 	give the highest priority to expanding the 
103.2 	system to neighborhoods having the highest 
103.3 	crime rate per capita.

103.4	(i) Additional Minneapolis peace officers
		-0-
		100,000
	
103.5 	For a grant to the city of Minneapolis. 
103.6 	This grant money is to be used by the 
103.7 	Minneapolis Police Department to hire 
103.8 	additional peace officers to be assigned to 
103.9 	downtown Minneapolis.
103.10 	The commissioner shall work with 
103.11 	the Bureau of Criminal Apprehension, 
103.12 	the State Patrol, the Hennepin County 
103.13 	Sheriff's Office, the Minneapolis Police 
103.14 	Department, and the Metro Transit Police, 
103.15 	in a collaborative manner to increase and 
103.16 	coordinate law enforcement efforts in 
103.17 	downtown Minneapolis.

103.18	(j) Financial Crimes Task Force
		177,000
		177,000

103.19	Sec. 6. CORRECTIONS

103.20	Subdivision 1.Total appropriation
 		3,213,000
		3,830,000
	
103.21 	These appropriations are added to the 
103.22 	appropriations in Laws 2005, chapter 136, 
103.23 	article 1, section 13. The amounts that may 
103.24 	be spent from these appropriations for each 
103.25 	program are specified in subdivisions 2 and 
103.26 	3.

103.27	Subd.  2.Correctional institutions
 		2,668,000
		3,109,000
	
103.28 	The commissioner may not cut correctional 
103.29 	officer positions. To the degree feasible, 
103.30 	the commissioner shall maintain chemical 
103.31 	dependency programs at or near current 
104.1 	levels. If cuts to chemical dependency 
104.2 	programs are necessary, the commissioner 
104.3 	shall attempt to preserve the state match for 
104.4 	federal funding.

104.5	Subd.  3.Community services

104.6	(a) General operations
		545,000
		-0-

104.7	(b) Mentoring program
		-0-
		250,000
	
104.8 	For a grant to a nonprofit organization that 
104.9 	is located in the greater Twin Cities and 
104.10 	provides one-to-one mentoring relationships 
104.11 	to youth enrolled between the ages of seven 
104.12 	to 13 whose parent or other significant 
104.13 	family member is incarcerated in a county 
104.14 	workhouse, county jail, state prison, or other 
104.15 	type of correctional facility or is subject to 
104.16 	correctional supervision. The grant must be 
104.17 	used to provide children with adult mentors 
104.18 	to strengthen developmental outcomes, 
104.19 	including enhanced self-confidence and 
104.20 	esteem; improved academic performance; 
104.21 	and improved relationships with peers, 
104.22 	family, and other adults designed to prevent 
104.23 	the mentored youth from entering the 
104.24 	juvenile justice system.
104.25 	As a condition of receiving the grant, the 
104.26 	grant recipient must:
104.27 	(1) collaborate with other organizations 
104.28 	that have a demonstrated history of 
104.29 	providing services to youth and families in 
104.30 	disadvantaged situations;
104.31 	(2) implement procedures to ensure that the 
104.32 	mentors pose no safety risk to the child and 
105.1 	have the skills to participate in a mentoring 
105.2 	relationship;
105.3 	(3) provide enhanced training to mentors 
105.4 	focusing on asset building and family 
105.5 	dynamics when a parent is incarcerated; and
105.6 	(4) provide individual family plan and 
105.7 	aftercare.
105.8 	The grant recipient must submit an evaluation 
105.9 	plan to the commissioner delineating the 
105.10 	program and student outcome goals and 
105.11 	activities implemented to achieve the stated 
105.12 	outcomes. The goals must be clearly stated 
105.13 	and measurable. The grant recipient must 
105.14 	collect, analyze, and report on participation 
105.15 	and outcome data that enable the department 
105.16 	to verify that the program goals were met.

105.17	(c) Scott County
		-0-
		196,000
	
105.18 	To increase the Community Corrections Act 
105.19 	subsidy for the addition of Scott County. 
105.20 	The money must be distributed according 
105.21 	to the community corrections aid formula 
105.22 	contained in Minnesota Statutes, section 
105.23 	401.10.

105.24	(d) Discharge planning
		-0-
		200,000
	
105.25 	For discharge planning for inmates with 
105.26 	mental illness.

105.27	(e) Immigration specialist
		-0-
		75,000
	
105.28 	For a departmental immigration specialist to 
105.29 	serve as a statewide resource for counties 
105.30 	with noncitizens convicted of criminal 
105.31 	offenses. The specialist shall provide 
105.32 	information on, and actively seek, any 
105.33 	federal reimbursement programs that provide 
106.1 	funding to states and localities for both the 
106.2 	direct costs under the state criminal alien 
106.3 	assistance program and indirect costs related 
106.4 	to the incarceration of noncitizens convicted 
106.5 	of criminal offenses.

106.6
106.7	Sec. 7. PEACE OFFICER STANDARDS 
AND TRAINING BOARD (POST)
 					
106.8 	The board shall conduct a training audit of its 
106.9 	practitioners, including chiefs of police and 
106.10 	county sheriffs, to determine what training 
106.11 	is currently offered, what new training is 
106.12 	necessary, and how it should be implemented. 
106.13 	Training topics shall include the policing of 
106.14 	immigrant communities and racial profiling.

106.15 	Sec. 8. Laws 2005, chapter 136, article 1, section 10, is amended to read:

106.16
106.17	Sec. 10.PEACE OFFICER  STANDARDS 
AND TRAINING BOARD (POST)
 		4,154,000
		4,014,000
4,214,000
	
106.18 	EXCESS AMOUNTS TRANSFERRED.
106.19 	This  appropriation is from the peace officer  
106.20 	training account in the special revenue  fund.  
106.21 	Any new receipts credited to  that account in 
106.22 	the first year in  excess of $4,154,000 must be  
106.23 	transferred and credited to the general  fund.  
106.24 	Any new receipts credited to  that account 
106.25 	in the second year in  excess of $4,014,000
106.26 	$4,214,000 must be  transferred and credited 
106.27 	to the general  fund.  
106.28 	TECHNOLOGY IMPROVEMENTS.
106.29 	$140,000 the  first year is for technology  
106.30 	improvements.  
106.31 	PEACE OFFICER TRAINING 
106.32 	REIMBURSEMENT.  $2,909,000 each the 
107.1 	first year and $3,109,000 the second year is 
107.2 	for  reimbursements to local governments for  
107.3 	peace officer training costs.  

107.4 	Sec. 9. Minnesota Statutes 2004, section 13.6905, is amended by adding a subdivision 
107.5 	to read:
107.6 		Subd. 1a.Facility security assessments and plans. Hazardous substance or oil 
107.7 	facility security assessments and plans are classified under section 115E.04, subdivision 
107.8 	4b.

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

107.10 	Sec. 10. Minnesota Statutes 2004, section 115E.01, subdivision 5, is amended to read:
107.11 		Subd. 5.Facility. "Facility" means a structure, group of structures, equipment, 
107.12 	or device, other than a vessel, that is used for one or more of the following purposes: 
107.13 	exploring for, drilling for, producing, storing, handling, transferring, processing, or 
107.14 	transporting oil or a hazardous substance. Facility includes a motor vehicle, rolling stock, 
107.15 	or pipeline used for one or more of these purposes. Facility also includes a research and 
107.16 	development laboratory, which means a specially designated area used primarily for 
107.17 	research, development, and testing activity and not primarily involved in the production of 
107.18 	goods for commercial sale. A facility may be in, on, or under land, or in, on, or under 
107.19 	waters of the state as defined in section  115.01, subdivision 22. 

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

107.21 	Sec. 11. Minnesota Statutes 2004, section 115E.01, subdivision 6, is amended to read:
107.22 		Subd. 6.Hazardous substance. "Hazardous substance" has the meaning given 
107.23 	in section  115B.02, subdivision 8. In addition, hazardous substance includes the 
107.24 	substances listed under section 112r of the Clean Air Act, as provided by Code of Federal 
107.25 	Regulations, title 40, part 68.

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

107.27 	Sec. 12. Minnesota Statutes 2004, section 115E.01, subdivision 7, is amended to read:
107.28 		Subd. 7.Lead agency. "Lead agency" means:
107.29 	(1) the Department of Agriculture, with respect to agricultural chemicals; or
107.30 	(2) the Pollution Control Agency, for other hazardous substances or oil; or
108.1 	(3) the Department of Public Safety, with respect to the security planning and 
108.2 	security measures.

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

108.4 	Sec. 13. Minnesota Statutes 2004, section 115E.01, is amended by adding a subdivision 
108.5 	to read:
108.6 		Subd. 11d.Security measure. "Security measure" means an action carried out to 
108.7 	increase the security of a facility, including employee training and background checks, 
108.8 	limitation and prevention of access to controls of the facility, protection of the perimeter 
108.9 	of the facility, installation and operation of an intrusion detection sensor, or a measure to 
108.10 	increase computer or computer network security.

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

108.12 	Sec. 14. Minnesota Statutes 2004, section 115E.01, is amended by adding a subdivision 
108.13 	to read:
108.14 		Subd. 11e.Use of inherently safer technology. "Use of inherently safer 
108.15 	technology" means the use of a technology, product, raw material, or practice that, as 
108.16 	compared with the technologies, products, raw materials, or practices currently in use, 
108.17 	reduces or eliminates the possibility of a release, and reduces or eliminates the threats to the 
108.18 	public health or safety and environment associated with the release or threatened release.

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

108.20 	Sec. 15. Minnesota Statutes 2004, section 115E.01, subdivision 13, is amended to read:
108.21 		Subd. 13.Worst case discharge. "Worst case discharge" means:
108.22 	(1) in the case of a vessel, sudden loss of the entire contents of the vessel in weather 
108.23 	conditions that impede cleanup;
108.24 	(2) for each tank of a storage tank facility, sudden loss of the entire contents of the 
108.25 	tank in weather conditions that impede cleanup;
108.26 	(3) in the case of railroad rolling stock facilities, sudden loss of the contents of the 
108.27 	maximum expected number of the rail cars containing oil or hazardous substance of a train 
108.28 	onto land or into water in weather conditions that impede cleanup;
108.29 	(4) in the case of truck and trailer rolling stock facilities, sudden loss of the entire 
108.30 	contents of the truck or trailer onto land or into water in weather conditions that impede 
108.31 	cleanup;
109.1 	(5) in the case of a pipeline facility, sudden loss of the contents of the pipeline 
109.2 	which would be expected from complete failure of the pipeline onto land or into water in 
109.3 	weather conditions that impede cleanup;
109.4 	(6) in the case of oil or hazardous substance transfer facilities, sudden loss of the 
109.5 	largest volume which could occur during transfer into or out of a facility; or
109.6 	(7) in the case of a facility with more than the threshold quantity of any substance 
109.7 	listed in Code of Federal Regulations, title 40, part 68, under section 112r of the Clean 
109.8 	Air Act, on the property at any point in the year, sudden loss of the maximum expected 
109.9 	inventory of the substances; or
109.10 	(8) the worst case discharge for the facility as described by regulations under the 
109.11 	Oil Pollution Act of 1990 if the regulations, when adopted, describe a discharge worse 
109.12 	than one described in clauses (1) to (6) (7).

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

109.14 	Sec. 16. [115E.025] DUTY TO SECURE FACILITIES.
109.15 		Subdivision 1.General security. A person who owns or operates a vessel or 
109.16 	facility transporting, storing, or otherwise handling hazardous substances or oil, or who 
109.17 	is otherwise in control of hazardous substances or oil, shall take reasonable security 
109.18 	measures to prevent the unauthorized access of persons to the facilities or to the control 
109.19 	mechanisms of the facilities.
109.20 		Subd. 2.Specific security measures. The following persons shall comply with the 
109.21 	specific requirements of section 115E.04, subdivision 1a:
109.22 	(1) persons who own or operate facilities subject to Code of Federal Regulations, 
109.23 	title 40, part 68, under section 112r of the Clean Air Act, except for retail facilities at 
109.24 	which more than one-half of the income is obtained from direct sales of ammonia or 
109.25 	propane to end users; and
109.26 	(2) persons who own or operate facilities containing 1,000,000 gallons or more of 
109.27 	oil or hazardous substance in tank storage at any time.

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

109.29 	Sec. 17. Minnesota Statutes 2004, section 115E.04, is amended by adding a subdivision 
109.30 	to read:
109.31 		Subd. 1a.Security plan. Persons required to show specific security measures 
109.32 	under section 115E.025, subdivision 2, shall prepare and maintain a facility security 
110.1 	plan. The security plan must be completed in consultation with local law enforcement 
110.2 	agencies. The security plan must:
110.3 	(1) summarize the methods used and results of an assessment of vulnerability of 
110.4 	the facility to a terrorist attack or other unauthorized entry and release, the expertise 
110.5 	and affiliation of the evaluators, and any direct or indirect relationship between the 
110.6 	vulnerability evaluators and the owner or operator of the facility;
110.7 	(2) provide an inventory of the hazardous substance or oil subject to the security 
110.8 	plan, with ranges of the quantity of each substance expected to be in the facility and 
110.9 	entering and leaving the facility during the course of a year;
110.10 	(3) assess the use of inherently safer technology in reducing or eliminating the 
110.11 	vulnerability of the facility and the possibility of an unauthorized release;
110.12 	(4) describe actions and procedures, including safer design and maintenance of 
110.13 	the facility, use of inherently safer technology, and all appropriate security measures 
110.14 	undertaken to eliminate or significantly lessen the vulnerability to an unauthorized entry to 
110.15 	the facility or an unauthorized release of oil or a hazardous substance; and 
110.16 	(5) list the names of all insurance carriers underwriting the facility's environmental 
110.17 	liability and workers' compensation insurance policies and the scope of the policies, 
110.18 	including any limitations and exclusions.
110.19 	A plan submitted to the federal government under the Oil Pollution Act of 1990 or 
110.20 	prepared under any other law may be used to satisfy the security plan requirement, if the 
110.21 	information required by this subdivision is included in the plan. A community water 
110.22 	system vulnerability assessment and emergency response plan prepared under the Public 
110.23 	Health Security and Bioterrorism Preparedness and Response Act of 2002 may be used 
110.24 	to satisfy the security plan requirement.

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

110.26 	Sec. 18. Minnesota Statutes 2004, section 115E.04, subdivision 2, is amended to read:
110.27 		Subd. 2.Timing. (a) A person required to be prepared under section  115E.03, other 
110.28 	than a person who owns or operates a motor vehicle, rolling stock, or a facility that stores 
110.29 	less than 250,000 gallons of oil or a hazardous substance, shall complete the response plan 
110.30 	required by this section by March 1, 1993, unless one of the commissioners orders the 
110.31 	person to demonstrate preparedness at an earlier date under section  115E.05. 
110.32 	(b) A person who owns or operates a motor vehicle, rolling stock, or a facility 
110.33 	that stores less than 250,000 gallons of oil or a hazardous substance shall complete the 
110.34 	response plan required by this section by January 1, 1994.
111.1 	(c) A person required to prepare a security plan shall complete it within 90 days of 
111.2 	the effective date of this section. The security plan must be amended following significant 
111.3 	change in the security measures, vulnerability, or presence of hazardous substances on 
111.4 	the facility.
111.5 	(d) Plans required under section  115E.04 or  115E.045 must be updated every three 
111.6 	years. Plans must be updated before three years following a significant discharge, upon 
111.7 	significant change in vessel or facility operation or ownership, upon significant change in 
111.8 	the national or area contingency plans under the Oil Pollution Act of 1990, or upon change 
111.9 	in the capabilities or role of a person named in a plan who has an important response role. 

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

111.11 	Sec. 19. Minnesota Statutes 2004, section 115E.04, is amended by adding a subdivision 
111.12 	to read:
111.13 		Subd. 4a.Review of security plans. (a) A person required to complete a security 
111.14 	plan under section 115E.025, subdivision 2, must submit a copy of the security plan to the 
111.15 	commissioner of public safety within five business days of its completion.
111.16 	(b) The commissioner of public safety or a person authorized by the commissioner 
111.17 	must be granted access to the facility for the purpose of inspecting security measures.
111.18 	(c) Upon the request of the commissioner of public safety or a person authorized 
111.19 	by the commissioner, a person shall demonstrate the adequacy of the security plan and 
111.20 	security measures by conducting announced or unannounced drills, calling persons and 
111.21 	organizations named in a security plan and verifying roles and capabilities, locating and 
111.22 	testing security measure procedures or equipment, questioning facility personnel, or other 
111.23 	means that in the judgment of the commissioner or sheriff demonstrate security. Before 
111.24 	requesting an unannounced security drill, the commissioner of public safety or authorized 
111.25 	person shall invite the county sheriff to participate in or witness the drill. If an announced 
111.26 	drill is conducted to the satisfaction of the commissioner, the person conducting the 
111.27 	security drill may not be required to conduct an additional unannounced security drill in 
111.28 	the same calendar year.

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

111.30 	Sec. 20. Minnesota Statutes 2004, section 115E.04, is amended by adding a subdivision 
111.31 	to read:
111.32 		Subd. 4b.Data. Assessments and plans prepared under this section and material 
111.33 	specifically related to preparation, review, or approval of a plan are nonpublic data as 
112.1 	defined in section 13.02, except that the data may be provided to law enforcement, 
112.2 	firefighters, members of the National Guard, or other representatives of a government 
112.3 	entity responding to a request for services at a facility that is the subject of the assessment 
112.4 	and plan.

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

112.6 	Sec. 21. Minnesota Statutes 2004, section 115E.05, subdivision 1, is amended to read:
112.7 		Subdivision 1.Amendment to plan. If one or more of the commissioners finds 
112.8 	the prevention and response plans or preparedness measures of a person do not meet the 
112.9 	requirements of this chapter, or if the commissioner of public safety finds that the security 
112.10 	plan does not meet the requirements of this chapter, the commissioner or commissioners 
112.11 	making the finding may by order require that reasonable amendments to the plan or 
112.12 	reasonable additional preventive or,  preparedness, or security  measures be implemented 
112.13 	in a timely fashion. If more than one commissioner makes the finding, the order must 
112.14 	be a joint order.

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

112.16 	Sec. 22. Minnesota Statutes 2004, section 115E.05, subdivision 2, is amended to read:
112.17 		Subd. 2.Compliance. If oil or a hazardous substance is discharged while it is under 
112.18 	the control of a person not identified in section  115E.025 or 115E.03, subdivision 2, any 
112.19 	one of the commissioners with appropriate jurisdiction may by order require the person to 
112.20 	comply with the prevention and response plan or security plan requirements of sections  
112.21 	115E.03 and  115E.04 in a timely manner if: 
112.22 	(1) land, water, or air of the state is polluted or threatened; or
112.23 	(2) human life, safety, health, natural resources, or property is damaged or threatened.

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

112.25 	Sec. 23. Minnesota Statutes 2004, section 115E.08, subdivision 3, is amended to read:
112.26 		Subd. 3.Jurisdiction. Except as otherwise provided, the following agencies have 
112.27 	primary responsibility for the specified areas in carrying out the duties and authorities 
112.28 	of this chapter:
112.29 	(1) the Department of Agriculture, for agricultural chemicals;
112.30 	(2) the Department of Public Safety, for public safety and,  protection of property, 
112.31 	and security measures;
113.1 	(3) the Department of Natural Resources, for assessment and rehabilitation of water 
113.2 	resources;
113.3 	(4) the Pollution Control Agency, for all other matters subject to this chapter; and
113.4 	(5) the Department of Transportation, with respect to requirements related to the 
113.5 	packaging, labeling, placarding, routing, and written reporting on releases of hazardous 
113.6 	materials that are being transported.

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

113.8 	Sec. 24. Minnesota Statutes 2005 Supplement, section 299A.78, is amended to read:
113.9 	299A.78 STATEWIDE HUMAN TRAFFICKING ASSESSMENT.
113.10 		Subdivision 1.Definitions. For purposes of sections 299A.78 to 299A.785
113.11 	299A.7955, the following definitions apply:
113.12 	(a) "Commissioner" means the commissioner of the Department of Public Safety.
113.13 	(b) "Nongovernmental organizations" means nonprofit, nongovernmental 
113.14 	organizations that provide legal, social, or other community services.
113.15 	(c) "Blackmail" has the meaning given in section 609.281, subdivision 2.
113.16 	(d) "Debt bondage" has the meaning given in section 609.281, subdivision 3.
113.17 	(e) "Forced labor or services" has the meaning given in section 609.281, subdivision 
113.18 	4.
113.19 	(f) "Labor trafficking" has the meaning given in section 609.281, subdivision 5.
113.20 	(g) "Labor trafficking victim" has the meaning given in section 609.281, subdivision 
113.21 	6.
113.22 	(h) "Sex trafficking" has the meaning given in section 609.321, subdivision 7a.
113.23 	(i) "Sex trafficking victim" has the meaning given in section 609.321, subdivision 7b.
113.24 	(j) "Trafficking" includes "labor trafficking" and "sex trafficking."
113.25 	(k) "Trafficking victim" includes "labor trafficking victim" and "sex trafficking 
113.26 	victim."
113.27 		Subd. 2.General duties. The commissioner of public safety, in cooperation with 
113.28 	local authorities, shall:
113.29 	(1) collect, share, and compile trafficking data among government agencies to assess 
113.30 	the nature and extent of trafficking in Minnesota.; and
113.31 	(2) analyze the collected data to develop a plan to address and prevent human 
113.32 	trafficking.
113.33 		Subd. 3.Outside services. As provided for in section 15.061, the commissioner of 
113.34 	public safety may contract with professional or technical services in connection with the 
114.1 	duties to be performed under section sections 299A.785, 299A.79, and 299A.795. The 
114.2 	commissioner may also contract with other outside organizations to assist with the duties 
114.3 	to be performed under section sections 299A.785, 299A.79, and 299A.795.

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

114.5 	Sec. 25. [299A.79] TRAFFICKING STUDY; ANALYSIS AND USE OF DATA. 
114.6 		Subdivision 1.Data analysis.   The commissioner shall analyze the data collected 
114.7 	in section 299A.785 to develop a plan to address current trafficking and prevent future 
114.8 	trafficking in this state. The commissioner may evaluate various approaches used by 
114.9 	other state and local governments to address trafficking. The plan must include, but not 
114.10 	be limited to:
114.11 	(1) ways to train agencies, organizations, and officials involved in law enforcement, 
114.12 	prosecution, and social services; 
114.13 	(2) ways to increase public awareness of trafficking; and 
114.14 	(3) procedures to enable the state government to work with nongovernmental 
114.15 	organizations to prevent trafficking. 
114.16 		Subd. 2. Training plan.  The training plan required in subdivision 1 must include: 
114.17 	(1) methods used in identifying trafficking victims, including preliminary interview 
114.18 	techniques and appropriate interrogation methods; 
114.19 	(2) methods for prosecuting traffickers; 
114.20 	(3) methods for protecting the rights of trafficking victims, taking into account 
114.21 	the need to consider human rights and special needs of women and children trafficking 
114.22 	victims; and 
114.23 	(4) methods for promoting the safety of trafficking victims.
114.24 		Subd. 3. Public awareness initiative.  The public awareness initiative required in 
114.25 	subdivision 1 must address, at a minimum, the following subjects: 
114.26 	(1) the risks of becoming a trafficking victim; 
114.27 	(2) common recruitment techniques; use of debt bondage, blackmail, forced labor 
114.28 	and services, prostitution, and other coercive tactics; and risks of assault, criminal sexual 
114.29 	conduct, exposure to sexually transmitted diseases, and psychological harm;
114.30 	(3) crime victims' rights; and 
114.31 	(4) reporting recruitment activities involved in trafficking. 
114.32 		Subd. 4. Report to legislature. The commissioner shall report the plan to the chairs 
114.33 	and ranking minority members of the senate and house committees and divisions having 
114.34 	jurisdiction over criminal justice policy and funding by December 15, 2006.

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

115.2 	Sec. 26. [299A.795] TRAFFICKING VICTIM ASSISTANCE.
115.3 	The commissioner may review the existing services and facilities to meet trafficking 
115.4 	victims' needs and recommend a plan that would coordinate the services including, but 
115.5 	not limited to:
115.6 	(1) medical and mental health services; 
115.7 	(2) housing; 
115.8 	(3) education and job training; 
115.9 	(4) English as a second language; 
115.10 	(5) interpreting services; 
115.11 	(6) legal and immigration services; and 
115.12 	(7) victim compensation. 

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

115.14 	Sec. 27. [299A.7955] HUMAN TRAFFICKING TASK FORCE.
115.15 		Subdivision 1.Creation and duties.  By September 1, 2006, the commissioner shall 
115.16 	appoint a 22-member task force on human trafficking to advise the commissioner on the 
115.17 	commissioner's duties in sections 299A.78 to 299A.795. The task force shall also serve as 
115.18 	a liaison between the commissioner and agencies and nongovernmental organizations that 
115.19 	provide services to trafficking victims. The members must receive expense reimbursement 
115.20 	as specified in section 15.059.
115.21 		Subd. 2. Membership.  To the extent possible, the human trafficking task force 
115.22 	consists of the following individuals, or their designees, who are knowledgeable in 
115.23 	trafficking, crime victims' rights, or violence protection:
115.24 	(1) a representative of the Minnesota Chiefs of Police Association; 	
115.25 	(2) a representative of the Bureau of Criminal Apprehension; 
115.26 	(3) a representative of the Minnesota Sheriffs' Association; 
115.27 	(4) a peace officer who works and resides in the metropolitan area, composed of 
115.28 	Hennepin, Ramsey, Anoka, Dakota, Scott, Washington, and Carver Counties; 
115.29 	(5) a peace officer who works and resides in the nonmetropolitan area; 
115.30 	(6) a county attorney who works in Hennepin County; 
115.31 	(7) a county attorney who works in Ramsey County; 
115.32 	(8) a representative of the attorney general's office; 
115.33 	(9) a representative of the Department of Public Safety's office of justice program;
115.34 	(10) a representative of the federal Homeland Security Department; 
116.1 	(11) a representative of the Department of Health and Human Services;
116.2 	(12) the chair or executive director of the Council on Asian-Pacific Minnesotans; 	  
116.3 	(13) the chair or executive director of the Minnesota Chicano-Latino Affairs Council;  
116.4 	(14) a representative of the United States Attorney's Office; and
116.5 	(15) eight representatives from nongovernmental organizations, which may include 
116.6 	representatives of: 
116.7 	(i) the Minnesota Coalition for Battered Women; 
116.8 	(ii) the Minnesota Coalition Against Sexual Assault; 
116.9 	(iii) a statewide or local organization that provides civil legal services to women 
116.10 	and children; 
116.11 	(iv) a statewide or local organization that provides mental health services to women 
116.12 	and children; 
116.13 	 (v) a statewide or local human rights and social justice advocacy organization;
116.14 	 (vi) a statewide or local organization that provides services to victims of torture, 
116.15 	trauma, or human trafficking;
116.16 	(vii) a statewide or local organization that serves the needs of immigrants and 
116.17 	refugee women and children from diverse ethnic communities; and 
116.18 	 (viii) a statewide or local organization that provides legal services to low-income 
116.19 	immigrants.
116.20 		Subd. 3. Officers; meetings.  (a) The task force shall annually elect a chair and 
116.21 	vice-chair from among its members, and may elect other officers as necessary.  The task 
116.22 	force shall meet at least quarterly, or upon the call of its chair. The task force shall meet 
116.23 	sufficiently enough to accomplish the tasks identified in this section. 
116.24 	(b) The task force shall seek out and enlist the cooperation and assistance of 
116.25 	nongovernmental organizations and academic researchers, especially those specializing in 
116.26 	trafficking, representing diverse communities disproportionately affected by trafficking, or 
116.27 	focusing on child services and runaway services.
116.28 		Subd. 4. Expiration.  Notwithstanding section 15.059, the task force expires June 
116.29 	30, 2011, or once it has implemented and evaluated the programs and policies in sections 
116.30 	299A.78 to 299A.795 to the satisfaction of the commissioner, whichever occurs first. 

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

116.32 	Sec. 28. [299A.7957] TOLL-FREE HOTLINE FOR TRAFFICKING VICTIMS.
116.33 	(a) As used in this section, "trafficking victim" has the meaning given in section 
116.34 	299A.78, subdivision 1.
117.1 	(b) The commissioner of public safety shall contract with a nonprofit organization 
117.2 	that provides legal services to domestic and international trafficking victims to maintain a 
117.3 	toll-free telephone hotline for trafficking victims. 
117.4 	The hotline must be in place by January 1, 2007, and must be operated 24 hours 
117.5 	a day, 365 days a year. The hotline must offer language interpreters for languages 
117.6 	commonly spoken in Minnesota, including, but not limited to, Spanish, Vietnamese, 
117.7 	Hmong, and Somali. At a minimum, the hotline must screen trafficking victims, both 
117.8 	domestic and international, and provide appropriate referrals to attorneys and victims' 
117.9 	services organizations.

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

117.11 	Sec. 29. Minnesota Statutes 2004, section 488A.03, subdivision 6, is amended to read:
117.12 		Subd. 6.Disposition of fines, fees and other money; accounts. (a) Except as 
117.13 	otherwise provided hereinwithin this subdivision and except as otherwise provided by law, 
117.14 	the court administrator shall pay to the Hennepin county treasurer all fines and penalties 
117.15 	collected by the court administrator, all fees collected by the court administrator for court 
117.16 	administrator's services, all sums forfeited to the court as hereinafter provided in this 
117.17 	subdivision, and all other money received by the court administrator. to the subdivision 
117.18 	of government entitled to it as follows on or before the 20th day after the last day of 
117.19 	the month in which the money was collected. Eighty percent of all fines and penalties 
117.20 	collected during the previous month shall be paid to the treasurer of the municipality or 
117.21 	subdivision of government where the crime was committed. The remainder of the fines 
117.22 	and penalties shall be credited to the general fund of the state. In all cases in which the 
117.23 	county attorney had charge of the prosecution, all fines and penalties shall be credited 
117.24 	to the state general fund.
117.25 	(b) The court administrator shall provide the county treasurer with identify the name 
117.26 	of the municipality or other subdivision of government where the offense was committed 
117.27 	and the name and official position of the officer who prosecuted the offense for each fine 
117.28 	or penalty, and the total amount of fines or penalties collected for each such municipality 
117.29 	or other subdivision of government, or for the county, or for the state.
117.30 	(c) At the beginning of the first day of any month the amount owing to any 
117.31 	municipality or county in the hands of the court administrator shall not exceed $5,000.
117.32 	(d) On or before the last day of each month the county treasurer shall pay over to 
117.33 	the treasurer of each municipality or subdivision of government in Hennepin County all 
117.34 	fines or penalties collected during the previous month for offenses committed within 
117.35 	such municipality or subdivision of government, except that all such fines and penalties 
118.1 	attributable to cases in which the county attorney had charge of the prosecution shall be 
118.2 	retained by the county treasurer and credited to the county general revenue fund.
118.3 	(e)  (c) Amounts represented by checks issued by the court administrator or received 
118.4 	by the court administrator which have not cleared by the end of the month may be shown 
118.5 	on the monthly account as having been paid or received, subject to adjustment on later 
118.6 	monthly accounts.
118.7 	(f) (d)  The court administrator may receive negotiable instruments in payment 
118.8 	of fines, penalties, fees or other obligations as conditional payments, and is not held 
118.9 	accountable thereforfor this until collection in cash is made and then only to the extent of 
118.10 	the net collection after deduction of the necessary expense of collection.

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

118.12 	Sec. 30. Minnesota Statutes 2004, section 488A.03, subdivision 11, is amended to read:
118.13 		Subd. 11.Fees payable to administrator. (a) The civil fees payable to the 
118.14 	administrator for services are the same in amount as the fees then payable to the District 
118.15 	Court of Hennepin County for like services. Library and filing fees are not required of 
118.16 	the defendant in an eviction action. The fees payable to the administrator for all other 
118.17 	services of the administrator or the court shall be fixed by rules promulgated by a majority 
118.18 	of the judges.
118.19 	(b) Fees are payable to the administrator in advance.
118.20 	(c) Judgments will be entered only upon written application.
118.21 	(d) The following fees shall be taxed for all charges filed in court where applicable: 
118.22 	(a) The state of Minnesota and any governmental subdivision within the jurisdictional area 
118.23 	of any district court herein established may present cases for hearing before said district 
118.24 	court; (b) In the event the court takes jurisdiction of a prosecution for the violation of a 
118.25 	statute or ordinance by the state or a governmental subdivision other than a city or town 
118.26 	in Hennepin County, all fines, penalties, and forfeitures collected shall be paid over to 
118.27 	the treasurer of the governmental subdivision which submitted charges for prosecution 
118.28 	under ordinance violation and to the county treasurer in all other charges except where 
118.29 	a different disposition is provided by law, in which case, payment shall be made to 
118.30 	the public official entitled thereto. The following fees shall be taxed to the county or 
118.31 	to the state or governmental subdivision which would be entitled to payment of the 
118.32 	fines, forfeiture or penalties in any case, and shall be paid to the court administrator for 
118.33 	disposing of the matter:
118.34 	(1) For each charge where the defendant is brought into court and pleads guilty and 
118.35 	is sentenced, or the matter is otherwise disposed of without trial .......... $5.
119.1 	(2) In arraignments where the defendant waives a preliminary examination .......... 
119.2 	$10.
119.3 	(3) For all other charges where the defendant stands trial or has a preliminary 
119.4 	examination by the court .......... $15.
119.5 	(e) This paragraph applies to the distribution of fines paid by defendants without a 
119.6 	court appearance in response to a citation. On or before the tenth day after the last day of 
119.7 	the month in which the money was collected, the county treasurer shall pay 80 percent 
119.8 	of the fines to the treasurer of the municipality or subdivision within the county where 
119.9 	the violation was committed. The remainder of the fines shall be credited to the general 
119.10 	revenue fund of the county.

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

119.12 	Sec. 31.  REPEALER.
 119.13 	Minnesota Statutes 2004, section 488A.03, subdivision 11b, is repealed.

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

119.15 	ARTICLE 16
119.16 	STATE GOVERNMENT

119.17 	Section 1. STATE GOVERNMENT APPROPRIATIONS.
 119.18 	The sums shown in the columns marked "APPROPRIATIONS" are added to the 
119.19 	appropriations in Laws 2005, chapter 156, article 1, or other law to the agencies and for 
119.20 	the purposes specified in this article.  The appropriations are from the general fund or 
119.21 	another named fund and are available for the fiscal years indicated for each purpose.  The 
119.22 	figures "2006" and "2007" used in this article mean that the addition to the appropriation 
119.23 	listed under them is available for the fiscal year ending June 30, 2006, or June 30, 
119.24 	2007, respectively. "The first year" is fiscal year 2006. "The second year" is fiscal year 
119.25 	2007. "The biennium" is fiscal years 2006 and 2007.  Supplementary appropriations and 
119.26 	reductions to appropriations for the fiscal year ending June 30, 2006, are effective the 
119.27 	day following final enactment.

119.28	SUMMARY BY FUND
	
119.29			2006
		2007
		TOTAL
	
119.30	General
	$
	4,250,000
	$
	5,057,000
	$
	9,307,000
	
120.1	Workers' Compensation
	$
	-0-
	$
	320,000
	$
	320,000
	
120.2	TOTAL
	$
	4,250,000
	$
	5,377,000
	$
	9,627,000

								

120.3				APPROPRIATIONS
	
120.4				Available for the Year
	
120.5				Ending June 30
	
120.6					2006
		2007

120.7	Sec. 2. LEGISLATURE 

120.8	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	37,000
	
120.9 	The appropriations in this section are to the 
120.10 	Legislative Coordinating Commission for 
120.11 	the purposes in subdivisions 2 and 3.

120.12	Subd.  2.Legislative forums
 				30,000
	
120.13 	For the cost of annual forums to improve 
120.14 	legislative effectiveness, as required by 
120.15 	Minnesota Statutes, section 3.051.

120.16	Subd.  3.International Legislators' Forum
 				7,000
	
120.17 	For the International Legislators' Forum, 
120.18 	to allow Minnesota legislators to meet with 
120.19 	counterparts from South Dakota, North 
120.20 	Dakota, and Manitoba, Canada, to discuss 
120.21 	issues of mutual concern. This is a onetime 
120.22 	appropriation.

120.23
120.24	Sec. 3. GOVERNOR AND LIEUTENANT 
GOVERNOR
 				(700,000)

120.25	Interagency agreements
					
120.26 	This reduction is intended to offset the value 
120.27 	of employees provided to the Office of the 
120.28 	Governor and Lieutenant Governor through 
121.1 	interagency agreements. This is a onetime 
121.2 	reduction in appropriation.

121.3	Sec. 4. FINANCE
 		-0-
		200,000

121.4	Northwest Airlines bankruptcy counsel
					
121.5 	For the state's share of the cost of bankruptcy 
121.6 	counsel representing joint interests of the 
121.7 	state and the city of Duluth in the Northwest 
121.8 	Airlines bankruptcy. The commissioner 
121.9 	must request the city of Duluth to pay 
121.10 	its proportional share of the cost of the 
121.11 	bankruptcy counsel. This is a onetime 
121.12 	appropriation.

121.13
121.14	Sec. 5. OFFICE OF ENTERPRISE 
TECHNOLOGY
 		-0-
		1,900,000
	
121.15 	For comprehensive planning, 
121.16 	implementation, and administration of 
121.17 	enterprise information technology security 
121.18 	according to Minnesota Statutes, sections 
121.19 	16E.01 and 16E.03. $1,700,000 is added 
121.20 	to the appropriation base for fiscal years 
121.21 	2008 and thereafter to provide for continuing 
121.22 	administration of enterprise security.

121.23
121.24	Sec. 6. OFFICE OF ADMINISTRATIVE 
HEARINGS
 		-0-
		320,000
	
121.25 	From the workers' compensation fund 
121.26 	for costs associated with the relocation 
121.27 	of offices to St. Paul. The commissioner 
121.28 	of administration shall take all steps as 
121.29 	necessary to complete the renovation of 
121.30 	the Stassen Building for these purposes by 
121.31 	June 30, 2007. Minnesota Statutes, section 
122.1 	16B.33, subdivision 3, does not apply if 
122.2 	the estimated cost of construction exceeds 
122.3 	$2,000,000. This is a onetime appropriation.
122.4 	Beginning in fiscal year 2009 and for all 
122.5 	fiscal years thereafter, the appropriation base 
122.6 	for the workers' compensation fund for the 
122.7 	Office of Administrative Hearings is reduced 
122.8 	by $297,000 to reflect savings in rent costs 
122.9 	due to the relocation of offices to St. Paul.

122.10	Sec. 7. EMPLOYEE RELATIONS

122.11	Subdivision 1.Total Appropriation
 		4,000,000
		100,000
	
122.12 	This appropriation may be spent for the 
122.13 	purposes in subdivisions 2 and 3.

122.14
122.15	Subd.  2.Government shutdown 
reimbursement
 		4,000,000
			
122.16 	To reimburse state employees, as defined 
122.17 	in Minnesota Statutes, section 43A.02, 
122.18 	subdivision 21, for hours for which they 
122.19 	were not compensated due to the partial 
122.20 	government shutdown of July 1, 2005, to 
122.21 	July 14, 2005. 
122.22 	The commissioner of employee relations 
122.23 	must determine the number of hours an 
122.24 	employee was prevented from working due 
122.25 	to the partial government shutdown. The 
122.26 	commissioner must credit an employee's 
122.27 	vacation bank with the number of hours 
122.28 	so determined. Notwithstanding any law 
122.29 	or policy to the contrary, an employee 
122.30 	credited with hours under this subdivision 
122.31 	may choose to be paid in cash for these 
122.32 	hours, rather than having the hours credited 
123.1 	to the employee's vacation bank. If a 
123.2 	memorandum of understanding or other 
123.3 	agreement or policy provides an employee 
123.4 	with partial compensation for hours not 
123.5 	worked due to the partial government 
123.6 	shutdown, compensation provided under 
123.7 	that agreement or policy must be subtracted 
123.8 	from compensation in cash or in credit to 
123.9 	the employee's vacation bank that otherwise 
123.10 	would be due under this subdivision. The 
123.11 	commissioner must make payments or 
123.12 	credits required by this subdivision within 30 
123.13 	days of the effective date of this section. The 
123.14 	commissioner must also use this general fund 
123.15 	appropriation to reimburse funds other than 
123.16 	the general fund for the cost of the payments 
123.17 	or credits required by this subdivision. If 
123.18 	the appropriation is insufficient to cover all 
123.19 	reimbursements, it must be prorated among 
123.20 	the eligible agencies and funds in proportion 
123.21 	to their share of the total amount reimbursed. 
123.22 	This is a onetime appropriation.

123.23
123.24	Subd.  3.Center for Health Care Purchasing 
Improvement
 				100,000
	
123.25 	To establish and operate the Center for 
123.26 	Health Care Purchasing Improvement. This 
123.27 	is a onetime appropriation.

123.28	Sec. 8. VETERANS AFFAIRS

123.29	Subdivision 1.Total Appropriation
 		250,000
		3,430,000
	
123.30 	This appropriation may be spent for the 
123.31 	purposes in subdivisions 2 to 7.

123.32	Subd.  2.Soldiers' assistance fund
 				1,900,000
	
124.1 	For deposit in the state soldiers' assistance 
124.2 	fund established in Minnesota Statutes, 
124.3 	section 197.03.

124.4	Subd.  3.Web site development
 				100,000
	
124.5 	To create a centralized Web site to contain 
124.6 	information on all state, federal, local, and 
124.7 	private agencies and organizations that 
124.8 	provide goods or services to veterans or their 
124.9 	families.

124.10	Subd.  4.Grants to counties
 				200,000
	
124.11 	For grants to counties under the terms of this 
124.12 	subdivision. The commissioner shall issue a 
124.13 	request for proposals for grants to enhance 
124.14 	the benefits, programs, and services provided 
124.15 	to veterans. The request must specify that 
124.16 	priority will be given to proposals that meet 
124.17 	the programmatic goals established by the 
124.18 	commissioner, including proposals that:
124.19 	(1) will provide the most effective outreach 
124.20 	to veterans;
124.21 	(2) reintegrate combat veterans into society;
124.22 	(3) collaborate with other social service 
124.23 	agencies, educational institutions, and other 
124.24 	relevant community resources;
124.25 	(4) reduce homelessness among veterans; 
124.26 	and
124.27 	(5) provide measurable outcomes.
124.28 	The commissioner may provide incentives to 
124.29 	encourage regional collaboration for service 
124.30 	delivery.
124.31 	The grants may be for a term of up to two 
124.32 	years. The commissioner shall ensure that 
124.33 	grants are made throughout all regions of 
125.1 	the state and shall develop a description of 
125.2 	best practices for the use of these grants. A 
125.3 	county may not reduce its veterans service 
125.4 	office budget by any amount received as a 
125.5 	grant under this subdivision. Grants made 
125.6 	under this subdivision are in addition to 
125.7 	and not subject to the requirements for 
125.8 	grants made under Minnesota Statutes, 
125.9 	section 197.608. The Vinland Center and the 
125.10 	Minnesota Assistance Council for Veterans 
125.11 	may apply for grants under this subdivision 
125.12 	in fiscal year 2007. This appropriation must 
125.13 	be included in the appropriation base through 
125.14 	fiscal year 2009.

125.15
125.16	Subd.  5.Higher education veterans 
assistance offices
 				900,000
	
125.17 	For the higher education veterans assistance 
125.18 	program in section 13. This appropriation 
125.19 	must be included in the appropriation base 
125.20 	through fiscal year 2009.

125.21	Subd.  6.Outreach and assistance
 		250,000
		250,000
	
125.22 	For an outreach and assistance initiative for 
125.23 	underserved veterans.

125.24	Subd.  7.Veterans organizations
 				80,000
	
125.25 	For veterans' services provided by Veterans 
125.26 	of Foreign Wars, the Military Order of the 
125.27 	Purple Heart, Disabled American Veterans, 
125.28 	and the Vietnam Veterans of America. This 
125.29 	is a onetime appropriation.

125.30	Sec. 9.  AMATEUR SPORTS COMMISSION
 		-0-
		90,000
	
125.31 	This is a onetime appropriation.

126.1 	Sec. 10. [3.051] LEGISLATIVE TRAINING FORUMS.
126.2 		Subdivision 1.Purposes. The Legislative Coordinating Commission shall oversee 
126.3 	two legislative training forums each year. The commission shall:
126.4 	(1) create an annual gathering of legislators to be held within the first two weeks of 
126.5 	January each year, and one other legislative training forum each year; 
126.6 	(2) select speakers, including executive or nonpartisan legislative  staff, who 
126.7 	will provide an overview of the issues affecting Minnesota, including demographic, 
126.8 	environmental, sociological, and economic perspectives on Minnesota, background on key 
126.9 	policy issues the legislature is expected to address that year, training to improve legislative 
126.10 	skills in running effective meetings, and training on other issues; and
126.11 	(3)  invite current executive branch officials in order to provide opportunities for 
126.12 	legislators and invited executive branch officials to interact and work to form cooperative 
126.13 	solutions to Minnesota issues, problems, and challenges.
126.14 		Subd. 2.Partners. The Legislative Coordinating Commission may select a partner 
126.15 	or partners from Minnesota's institutions of higher education and nonprofit communities, 
126.16 	and if such a choice is made, must give all interested institutions an opportunity to submit 
126.17 	a proposal to conduct the training, schedule activities, and create meeting agendas.  The 
126.18 	commission may accept donations from foundations, corporations, and individuals to 
126.19 	defray costs of the forums, and shall publish those donations on the legislature's Web site. 
126.20 	A registered lobbyist or principal may not contribute for this purpose.  Donations received 
126.21 	are appropriated to the Legislative Coordinating Commission for purposes of this section.

126.22 	Sec. 11. [16E.21] INFORMATION AND TELECOMMUNICATIONS 
126.23 	ACCOUNT.
126.24 		Subdivision 1.Account established; appropriation. The information and 
126.25 	telecommunications technology systems and services account is created in the special 
126.26 	revenue fund. Receipts credited to the account are appropriated to the Office of Enterprise 
126.27 	Technology for the purpose of defraying the costs of personnel and technology for 
126.28 	activities that create government efficiencies in accordance with this chapter.
126.29 		Subd. 2.Charges. Upon agreement of the participating agency, the Office 
126.30 	of Enterprise Technology may collect a charge for purchases of information and 
126.31 	telecommunications technology systems and services by state agencies and other 
126.32 	governmental entities through state contracts for purposes described in subdivision 
126.33 	1. Charges collected under this section must be credited to the information and 
126.34 	telecommunications technology systems and services account.

127.1 	Sec. 12. [43A.312] CENTER FOR HEALTH CARE PURCHASING 
127.2 	IMPROVEMENT.
127.3 		Subdivision 1.Establishment; administration. The commissioner shall establish 
127.4 	and administer the Center for Health Care Purchasing Improvement as an administrative 
127.5 	unit within the Department of Employee Relations. The Center for Health Care Purchasing 
127.6 	Improvement shall support the state in its efforts to be a more prudent and efficient 
127.7 	purchaser of quality health care services. The center shall aid the state in developing and 
127.8 	using more common strategies and approaches for health care performance measurement 
127.9 	and health care purchasing. The common strategies and approaches shall promote greater 
127.10 	transparency of health care costs and quality, and greater accountability for health 
127.11 	care results and improvement. The center shall also identify barriers to more efficient, 
127.12 	effective, quality health care and options for overcoming the barriers.
127.13 		Subd. 2.Staffing; duties; scope. (a) The commissioner may appoint a director, and 
127.14 	up to three additional senior-level staff or codirectors, and other staff as needed who are 
127.15 	under the direction of the commissioner. The staff of the center are in the unclassified 
127.16 	service.
127.17 	(b) With the authorization of the commissioner of employee relations, and in 
127.18 	consultation or interagency agreement with the appropriate commissioners of state 
127.19 	agencies, the director, or codirectors, may:
127.20 	(1) initiate projects to develop plan designs for state health care purchasing;
127.21 	(2) require reports or surveys to evaluate the performance of current health care 
127.22 	purchasing strategies;
127.23 	(3) calculate fiscal impacts, including net savings and return on investment, of health 
127.24 	care purchasing strategies and initiatives;
127.25 	(4) conduct policy audits of state programs to measure conformity to state statute or 
127.26 	other purchasing initiatives or objectives;
127.27 	(5) support the Administrative Uniformity Committee under section 62J.50 and 
127.28 	other relevant groups or activities to advance agreement on health care administrative 
127.29 	process streamlining;
127.30 	(6) consult with the Health Economics Unit of the Department of Health regarding 
127.31 	reports and assessments of the health care marketplace;
127.32 	(7) consult with the departments of Health and Commerce regarding health care 
127.33 	regulatory issues and legislative initiatives;
127.34 	(8) work with appropriate Department of Human Services staff and the Centers for 
127.35 	Medicare and Medicaid Services to address federal requirements and conformity issues 
127.36 	for health care purchasing;
128.1 	(9) assist the Minnesota Comprehensive Health Association in health care 
128.2 	purchasing strategies;
128.3 	(10) convene medical directors of agencies engaged in health care purchasing for 
128.4 	advice, collaboration, and exploring possible synergies;
128.5 	(11) contact and participate with other relevant health care task forces, study 
128.6 	activities, and similar efforts with regard to health care performance measurement and 
128.7 	performance-based purchasing; and
128.8 	(12) assist in seeking external funding through appropriate grants or other funding 
128.9 	opportunities and may administer grants and externally funded projects.
128.10 		Subd. 3.Report. The commissioner must report annually to the legislature and the 
128.11 	governor on the operations, activities, and impacts of the center. The report must be 
128.12 	posted on the Department of Employee Relations Web site and must be available to the 
128.13 	public. The report must include a description of the state's efforts to develop and use more 
128.14 	common strategies for health care performance measurement and health care purchasing. 
128.15 	The report must also include an assessment of the impacts of these efforts, especially in 
128.16 	promoting greater transparency of health care costs and quality, and greater accountability 
128.17 	for health care results and improvement.

128.18 	Sec. 13. HIGHER EDUCATION VETERANS ASSISTANCE PROGRAM.
 128.19 		Subdivision 1.Assistance provided. The commissioner of veterans affairs shall 
128.20 	provide central liaison staff and campus veterans assistance officers to serve the needs 
128.21 	of students who are veterans at higher education institutions in Minnesota. Methods of 
128.22 	assistance may include, but are not limited to, work-study positions for veterans, and 
128.23 	providing information and assistance regarding the availability of state, federal, local, 
128.24 	and private resources.
128.25 		Subd. 2.Steering committee. The commissioner of veterans affairs shall chair a 
128.26 	higher education veterans assistance program steering committee composed of:
128.27 	(1) the adjutant general or the adjutant general's designee;
128.28 	(2) a representative of Minnesota State Colleges and Universities, designated by 
128.29 	the chancellor;
128.30 	(3) a representative of the University of Minnesota, appointed by the president of 
128.31 	the university;
128.32 	(4) a representative of private colleges and universities in Minnesota, appointed by 
128.33 	the governor;
128.34 	(5) a representative of the Office of Higher Education, appointed by the executive 
128.35 	director; 
129.1 	(6) a representative of county veterans service offices, appointed by the 
129.2 	commissioner of veterans affairs; and
129.3 	(7) a representative of the Department of Employment and Economic Development, 
129.4 	appointed by the commissioner of that department.
129.5 	The steering committee shall advise the commissioner of veterans affairs regarding the 
129.6 	allocation of appropriations for the purposes of this section and shall develop a long-range 
129.7 	plan to serve the needs of students at higher education institutions in Minnesota who are 
129.8 	veterans.
129.9 		Subd. 3.Office space provided. Each campus of the University of Minnesota and 
129.10 	each institution within the Minnesota State Colleges and Universities system shall provide 
129.11 	adequate space for a veterans assistance office to be administered by the commissioner 
129.12 	of veterans affairs, and each private college and university in Minnesota is encouraged 
129.13 	to provide adequate space for a veterans assistance office to be administered by the 
129.14 	commissioner of veterans affairs. The veterans assistance office must provide information 
129.15 	and assistance to veterans who are students or family members of students at the school 
129.16 	regarding the availability of state, federal, local, and private resources.
129.17 		Subd. 4.Report. Beginning January 15, 2007, and each year thereafter, the 
129.18 	steering committee established in subdivision 2 shall report to the chairs of the legislative 
129.19 	committees with jurisdiction over veterans affairs policy and finance and higher education 
129.20 	policy and finance regarding the implementation and effectiveness of the program 
129.21 	established in this section.
129.22 		Subd. 5.Expiration. This section expires on June 30, 2009.

129.23 	Sec. 14. EFFECTIVE DATE.
 129.24 	This article is effective the day following final enactment.

129.25 	ARTICLE 17
129.26 	HUMAN SERVICES FORECAST ADJUSTMENTS

129.27	Section 1. DEPARTMENT OF HUMAN SERVICES FORECAST ADJUSTMENT.
 	
129.28 	The dollar amounts shown are added to or, if shown in parentheses, subtracted from, 
129.29 	the appropriations in Laws 2005, First Special Session chapter 4, and are appropriated 
129.30 	from the general fund, or any other fund named, to the Department of Human Services for 
129.31 	the purposes specified in this article, to be available for the fiscal year indicated for each 
129.32 	purpose. The figures "2006" and "2007" used in this article mean that the appropriation or 
130.1 	appropriations listed are available for the respective fiscal year ending June 30, 2006, or 
130.2 	June 30, 2007.

130.3	SUMMARY BY FUND
	
130.4					2006
		2007
	
130.5	General Fund
			$
	(58,333,000)
	$
	(17,589,000)
	
130.6	Health Care Access Fund
				(44,511,000)
		(62,360,000)
	
130.7	TANF
				(13,807,000)
		(3,866,000)
	
130.8	TOTAL
			$
	(116,651,000)
	$
	(83,815,000)

130.9130.10
	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

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

130.12	Summary by Fund
	
130.13	General
	(58,333,000)
	(17,589,000)
	
130.14	Health Care Access
	(44,511,000)
	(62,360,000)
	
130.15	TANF
	(13,807,000)
	(3,866,000)

130.16	Subd.  2.Revenue and Pass-Through

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

130.18
130.19	Subd.  3.Children and Economic Assistance 
Grants

130.20	General
		(4,469,000)
		1,785,000

130.21	TANF
		(12,361,000)
		(2,689,000)
	
130.22 	The amount that may be spent from this 
130.23 	appropriation for each purpose is as follows:

130.24	(a) Minnesota Family Investment Program

130.25	General
		6,048,000
		(393,000)

130.26	TANF
		(12,361,000)
		(2,689,000)

131.1	(b) MFIP Child Care Assistance Grants
		(5,090,000)
		2,751,000

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

131.3	(d) Minnesota Supplemental Aid
		(285,000)
		551,000

131.4	(e) Group Residential Housing
		(7,682,000)
		(5,071,000)

131.5	Subd.  4.Basic Health Care Grants

131.6	General
		(19,022,000)
		10,499,000

131.7	Health Care Access
		(44,511,000)
		(62,360,000)
	
131.8 	The amount that may be spent from this 
131.9 	appropriation for each purpose is as follows:

131.10	(a) MinnesotaCare
		(44,511,000)
		(62,360,000)
	
131.11 	This appropriation is from the health care 
131.12 	access fund.

131.13
131.14	(b) MA Basic Health Care - Families and 
Children
		(29,882,000)
		(54,401,000)

131.15
131.16	(c) MA Basic Health Care - Elderly and 
Disabled
		(2,857,000)
		33,179,000

131.17	(d) General Assistance Medical Care
		13,717,000
		31,721,000

131.18	Subd.  5.Continuing Care Grants
 		(34,842,000)
		(29,873,000)
	
131.19 	The amount that may be spent from this 
131.20 	appropriation for each purpose is as follows:

131.21	(a) MA Long-Term Care Waivers
		(23,368,000)
		(35,953,000)

131.22	(b) MA Long-Term Care Facilities
		(16,251,000)
		(5,202,000)

131.23	(c) Chemical Dependency Entitlement Grants
		4,777,000
		11,282,000

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

132.1 	ARTICLE 18
132.2 	HEALTH DEPARTMENT

132.3 	Section 1. [144.366] E-HEALTH RECORD GRANTS.
132.4 		Subdivision 1.Definitions. The following definitions are used for the purposes 
132.5 	of this section.
132.6 	(a) "Eligible community e-health collaborative" means an existing or newly 
132.7 	established collaborative to support the adoption and use of interoperable electronic 
132.8 	health records. A collaborative must consist of at least three or more eligible health 
132.9 	care entities in at least two of the categories listed in paragraph (b) and have a focus on 
132.10 	interconnecting the members of the collaborative for secure and interoperable exchange of 
132.11 	health care information.
132.12 	(b) "Eligible health care entity" means one of the following:
132.13 	(1) community clinics, as defined under section 145.9268; 
132.14 	(2) hospitals eligible for rural hospital capital improvement grants, as defined 
132.15 	in section 144.148;
132.16 	(3) physician clinics located in a community with a population of less than 50,000 
132.17 	according to United States Census Bureau statistics and outside the seven-county 
132.18 	metropolitan area; 
132.19 	(4) nursing facilities licensed under sections 144A.01 to 144A.27; 
132.20 	(5) community health boards as established under chapter 145A; 
132.21 	(6) nonprofit entities with a purpose to provide health information exchange 
132.22 	coordination governed by a representative, multistakeholder board of directors; and
132.23 	(7) other providers of health or health care services approved by the commissioner 
132.24 	for which interoperable electronic health record capability would improve quality of 
132.25 	care, patient safety, or community health.
132.26 		Subd. 2.Grants authorized. The commissioner of health shall award grants to 
132.27 	eligible community e-health collaborative projects to improve the implementation and 
132.28 	use of interoperable electronic health records including, but not limited to, the following 
132.29 	projects:
132.30 	(1) collaborative efforts to host and support fully functional interoperable electronic 
132.31 	health records in multiple care settings; 
132.32 	(2) electronic medication history and electronic patient registration information; 
132.33 	(3) electronic personal health records for persons with chronic diseases and for 
132.34 	prevention services; 
132.35 	(4) rural and underserved community models for electronic prescribing; and
133.1 	(5) enabling local public health systems to rapidly and electronically exchange 
133.2 	information needed to participate in community e-health collaboratives or for public 
133.3 	health emergency preparedness and response.
133.4 	Grant funds may not be used for construction of health care or other buildings or 
133.5 	facilities.
133.6 		Subd. 3.Allocation of grants. (a) To receive a grant under this section, an eligible 
133.7 	community e-health collaborative must submit an application to the commissioner of 
133.8 	health by the deadline established by the commissioner. A grant may be awarded upon the 
133.9 	signing of a grant contract. In awarding grants, the commissioner shall give preference to 
133.10 	projects benefiting providers located in rural and underserved areas of Minnesota which 
133.11 	the commissioner has determined have an unmet need for the development and funding 
133.12 	of electronic health records. Applicants may apply for and the commissioner may award 
133.13 	grants for one-year, two-year, or three-year periods.
133.14 	(b) An application must be on a form and contain information as specified by the 
133.15 	commissioner, but at a minimum must contain:
133.16 	(1) a description of the purpose or project for which grant funds will be used; 
133.17 	(2) a description of the problem or problems the grant funds will be used to address, 
133.18 	including an assessment likelihood of the project occurring absent grant funding; 
133.19 	(3) a description of achievable objectives; a workplan; a budget and budget 
133.20 	narrative; a project communications plan; a timeline for implementation and completion 
133.21 	of processes or projects enabled by the grant; and an assessment of privacy and security 
133.22 	issues, and a proposed approach to address these issues;
133.23 	(4) a description of the health care entities and other groups participating in the 
133.24 	project, including identification of the lead entity responsible for applying for and 
133.25 	receiving grant funds; 
133.26 	(5) a plan for how patients and consumers will be involved in development of 
133.27 	policies and procedures related to the access to and interchange of information; 
133.28 	(6) evidence of consensus and commitment among the health care entities and others 
133.29 	who developed the proposal and are responsible for its implementation; and
133.30 	(7) a plan for documenting and evaluating results of the grant.
133.31 	(c) The commissioner shall review each application to determine whether the 
133.32 	application is complete and whether the applicant and the project are eligible for a 
133.33 	grant. In evaluating applications, the commissioner shall take into consideration factors 
133.34 	including, but not limited to, the following:
133.35 	(1) the degree to which the proposal interconnects the various providers of care 
133.36 	in the applicant's geographic community; 
134.1 	(2) the degree to which the project provides for the interoperability of electronic 
134.2 	health records or related health information technology between the members of the 
134.3 	collaborative, and the presence and scope of a description of how the project intends to 
134.4 	interconnect with other providers not part of the project in the future;
134.5 	(3) the degree to which the project addresses current unmet needs pertaining 
134.6 	to interoperable electronic health records in a geographic area of Minnesota and the 
134.7 	likelihood that the needs would not be met absent grant funds; 
134.8 	(4) the applicant's thoroughness and clarity in describing the project; how the project 
134.9 	will improve patient safety, quality of care, and consumer empowerment; and the role of 
134.10 	the various collaborative members;
134.11 	(5) the recommendations of the Health Information and Technology Infrastructure 
134.12 	Advisory Committee; and
134.13 	(6) other factors that the commissioner deems relevant.
134.14 	(d) Grant funds shall be awarded on a three-to-one match basis. Applicants shall 
134.15 	be required to provide $1 in the form of cash or in-kind staff or services for each $3 
134.16 	provided under the grant program.
134.17 	(e) Grants shall not exceed $900,000 per grant. The commissioner has discretion 
134.18 	over the size and number of grants awarded.
134.19 		Subd. 4.Evaluation and report. The commissioner of health shall evaluate the 
134.20 	overall effectiveness of the grant program. The commissioner shall collect progress 
134.21 	and expenditure reports to evaluate the grant program from the eligible community 
134.22 	collaboratives receiving grants. Every two years, as part of the evaluation, the 
134.23 	commissioner shall, in coordination with the Health Information Technology and 
134.24 	Infrastructure Advisory Committee, report to the legislature on the needs of the community 
134.25 	and provide any recommendations for adding or changing eligible activities.

134.26 	Sec. 2. [144.90] STATE-LEVEL METHAMPHETAMINE COORDINATOR.
134.27 		Subdivision 1.Establishment; purpose; appointment. A state-level, 
134.28 	statewide methamphetamine coordinator is created in the Department of Health. The 
134.29 	methamphetamine coordinator shall coordinate Minnesota's efforts to reduce the incidence 
134.30 	of methamphetamine addiction and related consequences by working with various state 
134.31 	agencies, local units of government, law enforcement, courts, the chemical dependency 
134.32 	treatment community, the federal government, other states, and other interested individuals 
134.33 	and parties in order to coordinate the state's resources to provide and oversee education, 
134.34 	research, and training related to methamphetamine. To the extent possible, the coordinator 
135.1 	must coordinate efforts with tribal governments. The coordinator shall be appointed by 
135.2 	the governor.
135.3 		Subd. 2.Duties. The duties of the methamphetamine coordinator include, but 
135.4 	are not limited to:
135.5 	(1) providing health-based information and safety training materials to law 
135.6 	enforcement, first responders, and others exposed to methamphetamine use and 
135.7 	manufacturing;
135.8 	(2) promoting and tracking first responder training provided by the Minnesota Bureau 
135.9 	of Criminal Apprehension, the United States Drug Enforcement Agency, and others;
135.10 	(3) providing train-the-trainer materials for state and local agencies and community 
135.11 	groups working to respond to methamphetamine problems in their communities;
135.12 	(4) serving as a clearinghouse for information and materials on all aspects 
135.13 	of methamphetamine response, including treatment and treatment providers, law 
135.14 	enforcement, corrections and drug courts, education, prevention, children's issues, staff 
135.15 	training and safety, and K-12 curricula;
135.16 	(5) tracking of grant and other funding opportunities available to Minnesota 
135.17 	agencies, organizations, and communities;
135.18 	(6) coordinating media-based prevention opportunities, including methamphetamine 
135.19 	and other antidrug materials available for use by local communities;
135.20 	(7) establishing a speaker's bureau of experts on methamphetamine and other 
135.21 	addictions;
135.22 	(8) fielding methamphetamine-related calls;
135.23 	(9) maintaining current knowledge and understanding of methamphetamine-related 
135.24 	research in the areas of remediation, children's health, health of users, best prevention 
135.25 	and treatment practices, and other issues;
135.26 	(10) tracking trends in use, manufacturing, incidence of methamphetamine labs 
135.27 	and seizures, costs, incarcerations, and child involvement nationwide and for Minnesota 
135.28 	specifically;
135.29 	(11) making recommendations to the legislature for methamphetamine policy 
135.30 	changes and funding; 
135.31 	(12) serving as coordinator or point-of-contact for a Minnesota drug endangered 
135.32 	children's alliance; and 
135.33 	(13) coordinating prevention information efforts related to methamphetamine with 
135.34 	the Minnesota Prevention Resource Center.
136.1 		Subd. 3.Toll-free telephone number. The coordinator shall establish a toll-free 
136.2 	telephone number during business hours for providing information and counseling on 
136.3 	methamphetamine use and addiction.
136.4 		Subd. 4.Annual report. The methamphetamine coordinator shall submit to the 
136.5 	legislature an annual report by January 15 of each year beginning January 15, 2008, 
136.6 	summarizing goals that have been established and met, and plans for the upcoming year.
136.7 		Subd. 5.Office space. The commissioner of health shall provide the coordinator 
136.8 	with adequate office space and administrative services.

136.9 	Sec. 3. Laws 2005, First Special Session chapter 4, article 9, section 3, subdivision 2, 
136.10 	is amended to read:

136.11
136.12	Subd. 2.Community and Family  Health 
Improvement

136.13	Summary by Fund
	
136.14	General
	40,413,000
	40,382,000
	
136.15
136.16	State Government  Special 
Revenue
	141,000
	128,000
	
136.17	Health Care Access
	3,510,000
	3,516,000
	
136.18	Federal TANF
	6,000,000
	6,000,000
	
136.19 	FAMILY PLANNING BASE 
136.20 	REDUCTION. Base  level funding for 
136.21 	the family planning special projects grant 
136.22 	program is  reduced by $1,877,000 each 
136.23 	year of the biennium beginning July 1, 
136.24 	2007,  provided that this reduction shall 
136.25 	only  take place upon full implementation of 
136.26 	the family planning project section of  the 
136.27 	1115 waiver. Notwithstanding Minnesota 
136.28 	Statutes, section 145.925,  the commissioner 
136.29 	shall give priority to  community health care 
136.30 	clinics providing  family planning services 
136.31 	that either  serve a high number of women 
136.32 	who do not  qualify for medical assistance 
136.33 	or are  unable to participate in the medical 
137.1 	assistance program as a medical  assistance 
137.2 	provider when allocating the remaining 
137.3 	appropriations.  Notwithstanding section 15, 
137.4 	this  paragraph shall not expire.
137.5 	SHAKEN BABY VIDEO. Of the 
137.6 	state  government special revenue fund  
137.7 	appropriation, $13,000 in 2006 is  
137.8 	appropriated to the commissioner of  health 
137.9 	to provide a video to hospitals  on shaken 
137.10 	baby syndrome.  The  commissioner of health 
137.11 	shall assess a  fee to hospitals to cover the 
137.12 	cost of  the approved shaken baby video and 
137.13 	the  revenue received is to be deposited in  the 
137.14 	state government special revenue  fund.

137.15 	ARTICLE 19
137.16 	HEALTH CARE

137.17 	Section 1. Minnesota Statutes 2004, section 47.58, subdivision 8, is amended to read:
137.18 		Subd. 8.Counseling; requirement; penalty. A lender, mortgage banking company, 
137.19 	or other mortgage lender not related to the mortgagor must keep a certificate on file 
137.20 	documenting that the borrower, prior to entering into the reverse mortgage loan, received 
137.21 	counseling as defined in this subdivision from an organization that meets the requirements 
137.22 	of section  462A.209 and is a housing counseling agency approved by the Department of 
137.23 	Housing and Urban Development. The certificate must be signed by the mortgagor and 
137.24 	the counselor and include the date of the counseling, the name, address, and telephone 
137.25 	number of both the mortgagor and the organization providing counseling. A failure by 
137.26 	the lender to comply with this subdivision results in a $1,000 civil penalty payable to 
137.27 	the mortgagor. For the purposes of this subdivision, "counseling" means the following 
137.28 	services are provided to the borrower: 
137.29 	(1) a review of the advantages and disadvantages of reverse mortgage programs;
137.30 	(2) an explanation of how the reverse mortgage affects the borrower's estate and 
137.31 	public benefits;
137.32 	(3) an explanation of the lending process;
137.33 	(4) a discussion of the borrower's supplemental income needs; and
137.34 	(5) an explanation of the provisions of sections 256B.0913, subdivision 17, and 
137.35 	462A.05, subdivision 42; and
138.1 	(6) an opportunity to ask questions of the counselor.

138.2 	Sec. 2. Minnesota Statutes 2004, section 144A.071, subdivision 4c, is amended to read:
138.3 		Subd. 4c.Exceptions for replacement beds after June 30, 2003. (a) The 
138.4 	commissioner of health, in coordination with the commissioner of human services, may 
138.5 	approve the renovation, replacement, upgrading, or relocation of a nursing home or 
138.6 	boarding care home, under the following conditions:
138.7 	(1) to license and certify an 80-bed city-owned facility in Nicollet County to be 
138.8 	constructed on the site of a new city-owned hospital to replace an existing 85-bed facility 
138.9 	attached to a hospital that is also being replaced. The threshold allowed for this project 
138.10 	under section  144A.073 shall be the maximum amount available to pay the additional 
138.11 	medical assistance costs of the new facility; 
138.12 	(2) to license and certify 29 beds to be added to an existing 69-bed facility in St. 
138.13 	Louis County, provided that the 29 beds must be transferred from active or layaway status 
138.14 	at an existing facility in St. Louis County that had 235 beds on April 1, 2003.
138.15 	The licensed capacity at the 235-bed facility must be reduced to 206 beds, but the payment 
138.16 	rate at that facility shall not be adjusted as a result of this transfer. The operating payment 
138.17 	rate of the facility adding beds after completion of this project shall be the same as it was 
138.18 	on the day prior to the day the beds are licensed and certified. This project shall not 
138.19 	proceed unless it is approved and financed under the provisions of section  144A.073; and
138.20 	(3) to license and certify a new 60-bed facility in Austin, provided that: (i) 45 of 
138.21 	the new beds are transferred from a 45-bed facility in Austin under common ownership 
138.22 	that is closed and 15 of the new beds are transferred from a 182-bed facility in Albert Lea 
138.23 	under common ownership; (ii) the commissioner of human services is authorized by the 
138.24 	2004 legislature to negotiate budget-neutral planned nursing facility closures; and (iii) 
138.25 	money is available from planned closures of facilities under common ownership to make 
138.26 	implementation of this clause budget-neutral to the state. The bed capacity of the Albert 
138.27 	Lea facility shall be reduced to 167 beds following the transfer. Of the 60 beds at the 
138.28 	new facility, 20 beds shall be used for a special care unit for persons with Alzheimer's 
138.29 	disease or related dementias.; and
138.30 	(4) to license and certify up to 80 beds transferred from an existing state-owned 
138.31 	nursing facility in Cass County to a new facility located on the grounds of the 
138.32 	Ah-Gwah-Ching campus. The operating cost payment rates for the new facility shall be 
138.33 	determined based on the interim and settle-up payment provisions of Minnesota Rules, 
138.34 	part 9549.0057, and the reimbursement provisions of section 256B.431. The property 
138.35 	payment rate for the first three years of operation shall be $25 per day. For subsequent 
139.1 	years, the property payment rate of $25 shall be adjusted for inflation as provided in 
139.2 	section 256B.434, subdivision 4, paragraph (c), as long as the facility has a contract under 
139.3 	section 256B.434.
139.4 	(b) Projects approved under this subdivision shall be treated in a manner equivalent 
139.5 	to projects approved under subdivision 4a.

139.6 	Sec. 3. [144A.441] ASSISTED LIVING BILL OF RIGHTS ADDENDUM.
139.7 	Assisted living clients, as defined in section 144G.01, subdivision 3, shall be 
139.8 	provided with the home care bill of rights required by section 144A.44, except that the 
139.9 	home care bill of rights provided to these clients must include the following provision in 
139.10 	place of the provision in section 144A.44, subdivision 1, clause (16): 
139.11 	"(16) the right to reasonable, advance notice of changes in services or charges, 
139.12 	including at least 30 days' advance notice of the termination of a service by a provider, 
139.13 	except in cases where:
139.14 	(i) the recipient of services engages in conduct that alters the conditions of 
139.15 	employment as specified in the employment contract between the home care provider 
139.16 	and the individual providing home care services, or creates an abusive or unsafe work 
139.17 	environment for the individual providing home care services;
139.18 	(ii) an emergency for the informal caregiver or a significant change in the recipient's 
139.19 	condition has resulted in service needs that exceed the current service provider agreement 
139.20 	and that cannot be safely met by the home care provider; or
139.21 	(iii) the provider has not received payment for services, for which at least ten days' 
139.22 	advance notice of the termination of a service shall be provided."

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

139.24 	Sec. 4. [144A.442] TERMINATION OF HOME CARE SERVICES FOR 
139.25 	ASSISTED LIVING CLIENTS.
139.26 	If an arranged home care provider, as defined in section 144D.01, subdivision 2a, 
139.27 	who is not also Medicare certified terminates a service agreement or service plan with 
139.28 	an assisted living client, as defined in section 144G.01, subdivision 3, the home care 
139.29 	provider shall provide the assisted living client and the legal or designated representatives 
139.30 	of the client, if any, with a written notice of termination which includes the following 
139.31 	information:
139.32 	(1) the effective date of termination;
139.33 	(2) the reason for termination;
140.1 	(3) without extending the termination notice period, an affirmative offer to meet with 
140.2 	the assisted living client or client representatives within no more than five business days of 
140.3 	the date of the termination notice to discuss the termination;
140.4 	(4) contact information for a reasonable number of other home care providers in 
140.5 	the geographic area of the assisted living client, as required by Minnesota Rules, part 
140.6 	4668.0050;
140.7 	(5) a statement that the provider will participate in a coordinated transfer of the care 
140.8 	of the client to another provider or caregiver, as required by section 144A.44, subdivision 
140.9 	1, clause (17);
140.10 	(6) the name and contact information of a representative of the home care provider 
140.11 	with whom the client may discuss the notice of termination;
140.12 	(7) a copy of the home care bill of rights; and
140.13 	(8) a statement that the notice of termination of home care services by the home care 
140.14 	provider does not constitute notice of termination of the housing with services contract 
140.15 	with a housing with services establishment.

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

140.17 	Sec. 5. Minnesota Statutes 2004, section 144A.4605, is amended to read:
140.18 	144A.4605 ASSISTED LIVING HOME CARE CLASS F PROVIDER.
140.19 		Subdivision 1.Definitions. For purposes of this section, the term "assisted 
140.20 	living class F home care provider" means a home care provider who provides nursing 
140.21 	services, delegated nursing services, other services performed by unlicensed personnel, or 
140.22 	central storage of medications solely for residents of one or more housing with services 
140.23 	establishments registered under chapter 144D.
140.24 		Subd. 2.Assisted living Class F home care license established. A home care 
140.25 	provider license category entitled assisted living class F home care provider is hereby 
140.26 	established. A home care provider may obtain an assisted living a class F license if the 
140.27 	program meets the following requirements:
140.28 	(a) nursing services, delegated nursing services, other services performed by 
140.29 	unlicensed personnel, or central storage of medications under the assisted living class 
140.30 	F license are provided solely for residents of one or more housing with services 
140.31 	establishments registered under chapter 144D;
140.32 	(b) unlicensed personnel perform home health aide and home care aide tasks 
140.33 	identified in Minnesota Rules, parts 4668.0100, subparts 1 and 2, and 4668.0110, subpart 1. 
140.34 	Qualifications to perform these tasks shall be established in accordance with subdivision 3;
141.1 	(c) periodic supervision of unlicensed personnel is provided as required by rule;
141.2 	(d) notwithstanding Minnesota Rules, part 4668.0160, subpart 6, item D, client 
141.3 	records shall include:
141.4 	(1) daily records or a weekly summary of home care services provided;
141.5 	(2) documentation each time medications are administered to a client; and
141.6 	(3) documentation on the day of occurrence of any significant change in the client's 
141.7 	status or any significant incident, such as a fall or refusal to take medications.
141.8 	All entries must be signed by the staff providing the services and entered into the 
141.9 	record no later than two weeks after the end of the service day, except as specified in 
141.10 	clauses (2) and (3);
141.11 	(e) medication and treatment orders, if any, are included in the client record and 
141.12 	are renewed at least every 12 months, or more frequently when indicated by a clinical 
141.13 	assessment;
141.14 	(f) the central storage of medications in a housing with services establishment 
141.15 	registered under chapter 144D is managed under a system that is established by a 
141.16 	registered nurse and addresses the control of medications, handling of medications, 
141.17 	medication containers, medication records, and disposition of medications; and
141.18 	(g) in other respects meets the requirements established by rules adopted under 
141.19 	sections  144A.45 to  144A.47. 
141.20 		Subd. 3.Training or competency evaluations required. (a) Unlicensed personnel 
141.21 	must:
141.22 	(1) satisfy the training or competency requirements established by rule under 
141.23 	sections  144A.45 to  144A.47; or 
141.24 	(2) be trained or determined competent by a registered nurse in each task identified 
141.25 	under Minnesota Rules, part 4668.0100, subparts 1 and 2, when offered to clients in a 
141.26 	housing with services establishment as described in paragraphs (b) to (e).
141.27 	(b) Training for tasks identified under Minnesota Rules, part 4668.0100, subparts 
141.28 	1 and 2, shall use a curriculum which meets the requirements in Minnesota Rules, part 
141.29 	4668.0130.
141.30 	(c) Competency evaluations for tasks identified under Minnesota Rules, part 
141.31 	4668.0100, subparts 1 and 2, must be completed and documented by a registered nurse.
141.32 	(d) Unlicensed personnel performing tasks identified under Minnesota Rules, part 
141.33 	4668.0100, subparts 1 and 2, shall be trained or demonstrate competency in the following 
141.34 	topics:
141.35 	(1) an overview of sections  144A.43 to  144A.47 and rules adopted thereunder; 
141.36 	(2) recognition and handling of emergencies and use of emergency services;
142.1 	(3) reporting the maltreatment of vulnerable minors or adults under sections  626.556
142.2 	and  626.557; 
142.3 	(4) home care bill of rights;
142.4 	(5) handling of clients' complaints and reporting of complaints to the Office of 
142.5 	Health Facility Complaints;
142.6 	(6) services of the ombudsman for older Minnesotans;
142.7 	(7) observation, reporting, and documentation of client status and of the care or 
142.8 	services provided;
142.9 	(8) basic infection control;
142.10 	(9) maintenance of a clean, safe, and healthy environment;
142.11 	(10) communication skills;
142.12 	(11) basic elements of body functioning and changes in body function that must be 
142.13 	reported to an appropriate health care professional; and
142.14 	(12) physical, emotional, and developmental needs of clients, and ways to work with 
142.15 	clients who have problems in these areas, including respect for the client, the client's 
142.16 	property, and the client's family.
142.17 	(e) Unlicensed personnel who administer medications must comply with rules 
142.18 	relating to the administration of medications in Minnesota Rules, part 4668.0100, subpart 
142.19 	2, except that unlicensed personnel need not comply with the requirements of Minnesota 
142.20 	Rules, part 4668.0100, subpart 5.
142.21 		Subd. 4.License required. (a) A housing with services establishment registered 
142.22 	under chapter 144D that is required to obtain a home care license must obtain an assisted 
142.23 	living a class F home care license according to this section or a class A or class E B license 
142.24 	according to rule. A housing with services establishment that obtains a class E B license 
142.25 	under this subdivision remains subject to the payment limitations in sections  256B.0913, 
142.26 	subdivision 5f, paragraph (b), and  256B.0915, subdivision 3d. 
142.27 	(b) A board and lodging establishment registered for special services as of December 
142.28 	31, 1996, and also registered as a housing with services establishment under chapter 
142.29 	144D, must deliver home care services according to sections  144A.43 to 144A.47, and 
142.30 	may apply for a waiver from requirements under Minnesota Rules, parts 4668.0002 to 
142.31 	4668.0240, to operate a licensed agency under the standards of section  157.17. Such 
142.32 	waivers as may be granted by the department will expire upon promulgation of home care 
142.33 	rules implementing section  144A.4605. 
142.34 	(c) An adult foster care provider licensed by the Department of Human Services and 
142.35 	registered under chapter 144D may continue to provide health-related services under its 
142.36 	foster care license until the promulgation of home care rules implementing this section.
143.1 	(d) An assisted living (c) A class F home care provider licensed under this section 
143.2 	must comply with the disclosure provisions of section  325F.72 to the extent they are 
143.3 	applicable. 
143.4 		Subd. 5.License fees. The license fees for assisted living class F home care 
143.5 	providers shall be as follows:
143.6 	(1) $125 annually for those providers serving a monthly average of 15 or fewer 
143.7 	clients, and for assisted living class F providers of all sizes during the first year of 
143.8 	operation;
143.9 	(2) $200 annually for those providers serving a monthly average of 16 to 30 clients;
143.10 	(3) $375 annually for those providers serving a monthly average of 31 to 50 clients; 
143.11 	and
143.12 	(4) $625 annually for those providers serving a monthly average of 51 or more 
143.13 	clients.
143.14 		Subd. 6.Waiver. Upon request of the home care provider, the commissioner may 
143.15 	waive the provisions of this section relating to registered nurse duties.

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

143.17 	Sec. 6. Minnesota Statutes 2004, section 144D.01, is amended by adding a subdivision 
143.18 	to read:
143.19 		Subd. 2a.Arranged home care provider. "Arranged home care provider" means a 
143.20 	home care provider licensed under Minnesota Rules, chapter 4668, that provides services 
143.21 	to some or all of the residents of a housing with services establishment and that is either 
143.22 	the establishment itself or another entity with which the establishment has an arrangement.

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

143.24 	Sec. 7. Minnesota Statutes 2004, section 144D.015, is amended to read:
143.25 	144D.015 ASSISTED LIVING FACILITY OR ASSISTED LIVING 
143.26 	RESIDENCE DEFINITION FOR PURPOSES OF LONG-TERM CARE 
143.27 	INSURANCE.
143.28 	For purposes of consistency with terminology commonly used in long-term 
143.29 	care insurance policies and notwithstanding chapter 144G, a housing with services 
143.30 	establishment that is registered under section  144D.03 and that holds, or contracts makes 
143.31 	arrangements with an individual or entity that holds, a any type of home care license and 
143.32 	all other licenses, permits, registrations, or other governmental approvals legally required 
144.1 	for delivery of the services the establishment offers or provides to its residents, constitutes 
144.2 	an "assisted living facility" or "assisted living residence." 

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

144.4 	Sec. 8. Minnesota Statutes 2004, section 144D.02, is amended to read:
144.5 	144D.02 REGISTRATION REQUIRED.
144.6 	No entity may establish, operate, conduct, or maintain an elderly a housing with 
144.7 	services establishment in this state without registering and operating as required in 
144.8 	sections  144D.01 to  144D.06. 

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

144.10 	Sec. 9. Minnesota Statutes 2004, section 144D.03, subdivision 2, is amended to read:
144.11 		Subd. 2.Registration information. The establishment shall provide the following 
144.12 	information to the commissioner in order to be registered:
144.13 	(1) the business name, street address, and mailing address of the establishment;
144.14 	(2) the name and mailing address of the owner or owners of the establishment and, if 
144.15 	the owner or owners are not natural persons, identification of the type of business entity 
144.16 	of the owner or owners, and the names and addresses of the officers and members of the 
144.17 	governing body, or comparable persons for partnerships, limited liability corporations, or 
144.18 	other types of business organizations of the owner or owners;
144.19 	(3) the name and mailing address of the managing agent, whether through 
144.20 	management agreement or lease agreement, of the establishment, if different from the 
144.21 	owner or owners, and the name of the on-site manager, if any;
144.22 	(4) verification that the establishment has entered into an elderly a housing with 
144.23 	services contract, as required in section  144D.04, with each resident or resident's 
144.24 	representative; 
144.25 	(5) verification that the establishment is complying with the requirements of section  
144.26 	325F.72, if applicable; 
144.27 	(6) the name and address of at least one natural person who shall be responsible 
144.28 	for dealing with the commissioner on all matters provided for in sections  144D.01 to  
144.29 	144D.06, and on whom personal service of all notices and orders shall be made, and who 
144.30 	shall be authorized to accept service on behalf of the owner or owners and the managing 
144.31 	agent, if any; and 
145.1 	(7) the signature of the authorized representative of the owner or owners or, if 
145.2 	the owner or owners are not natural persons, signatures of at least two authorized 
145.3 	representatives of each owner, one of which shall be an officer of the owner.
145.4 	Personal service on the person identified under clause (6) by the owner or owners in 
145.5 	the registration shall be considered service on the owner or owners, and it shall not be a 
145.6 	defense to any action that personal service was not made on each individual or entity. The 
145.7 	designation of one or more individuals under this subdivision shall not affect the legal 
145.8 	responsibility of the owner or owners under sections  144D.01 to  144D.06. 

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

145.10 	Sec. 10. Minnesota Statutes 2004, section 144D.04, is amended to read:
145.11 	144D.04 ELDERLY HOUSING WITH SERVICES CONTRACTS.
145.12 		Subdivision 1.Contract required. No elderly housing with services establishment 
145.13 	may operate in this state unless a written elderly housing with services contract, as defined 
145.14 	in subdivision 2, is executed between the establishment and each resident or resident's 
145.15 	representative and unless the establishment operates in accordance with the terms of the 
145.16 	contract. The resident or the resident's representative shall be given a complete copy of 
145.17 	the contract and all supporting documents and attachments and any changes whenever 
145.18 	changes are made.
145.19 		Subd. 2.Contents of contract. An elderly A housing with services contract, which 
145.20 	need not be entitled as such to comply with this section, shall include at least the following 
145.21 	elements in itself or through supporting documents or attachments:
145.22 	(1) the name, street address, and mailing address of the establishment;
145.23 	(2) the name and mailing address of the owner or owners of the establishment and, if 
145.24 	the owner or owners is not a natural person, identification of the type of business entity 
145.25 	of the owner or owners;
145.26 	(3) the name and mailing address of the managing agent, through management 
145.27 	agreement or lease agreement, of the establishment, if different from the owner or owners;
145.28 	(4) the name and address of at least one natural person who is authorized to accept 
145.29 	service of process on behalf of the owner or owners and managing agent;
145.30 	(5) a statement describing the registration and licensure status of the establishment 
145.31 	and any provider providing health-related or supportive services under an arrangement 
145.32 	with the establishment;
145.33 	(6) the term of the contract;
146.1 	(7) a description of the services to be provided to the resident in the base rate to 
146.2 	be paid by resident;
146.3 	(8) a description of any additional services, including home care services, available 
146.4 	for an additional fee from the establishment directly or through arrangements with the 
146.5 	establishment, and a schedule of fees charged for these services;
146.6 	(9) fee schedules outlining the cost of any additional services;
146.7 	(10) (9) a description of the process through which the contract may be modified, 
146.8 	amended, or terminated;
146.9 	(11) (10) a description of the establishment's complaint resolution process available 
146.10 	to residents including the toll-free complaint line for the Office of Ombudsman for Older 
146.11 	Minnesotans;
146.12 	(12) (11) the resident's designated representative, if any;
146.13 	(13) (12) the establishment's referral procedures if the contract is terminated;
146.14 	(14) criteria (13) requirements of residency used by the establishment to determine 
146.15 	who may reside or continue to reside in the elderly housing with services establishment;
146.16 	(15) (14) billing and payment procedures and requirements;
146.17 	(16) (15) a statement regarding the ability of residents to receive services from 
146.18 	service providers with whom the establishment does not have an arrangement; and
146.19 	(17) (16) a statement regarding the availability of public funds for payment for 
146.20 	residence or services in the establishment; and
146.21 	(17) a statement regarding the availability of and contact information for long- 
146.22 	term care consultation services under section 256B.0911 in the county in which the 
146.23 	establishment is located.
146.24 		Subd. 3.Contracts in permanent files. Elderly Housing with services contracts 
146.25 	and related documents executed by each resident or resident's representative shall be 
146.26 	maintained by the establishment in files from the date of execution until three years after 
146.27 	the contract is terminated. The contracts and the written disclosures required under section  
146.28 	325F.72, if applicable, shall be made available for on-site inspection by the commissioner 
146.29 	upon request at any time. 

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

146.31 	Sec. 11. [144D.045] INFORMATION CONCERNING ARRANGED HOME 
146.32 	CARE PROVIDERS.
146.33 	If a housing with services establishment has one or more arranged home care 
146.34 	providers, the establishment shall arrange to have that arranged home care provider deliver 
146.35 	the following information in writing to a prospective resident, prior to the date on which 
147.1 	the prospective resident executes a contract with the establishment or the prospective 
147.2 	resident's move-in date, whichever is earlier:
147.3 	(1) the name, mailing address, and telephone number of the arranged home care 
147.4 	provider;
147.5 	(2) the name and mailing address of at least one natural person who is authorized to 
147.6 	accept service of process on behalf of the entity described in clause (1);
147.7 	(3) a description of the process through which a home care service agreement or 
147.8 	service plan between a resident and the arranged home care provider, if any, may be 
147.9 	modified, amended, or terminated;
147.10 	(4) the arranged home care provider's billing and payment procedures and 
147.11 	requirements; and
147.12 	(5) any limits to the services available from the arranged provider.

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

147.14 	Sec. 12. Minnesota Statutes 2004, section 144D.05, is amended to read:
147.15 	144D.05 AUTHORITY OF COMMISSIONER.
147.16 	The commissioner shall, upon receipt of information which may indicate the failure 
147.17 	of the elderly housing with services establishment, a resident, a resident's representative, 
147.18 	or a service provider to comply with a legal requirement to which one or more of them 
147.19 	may be subject, make appropriate referrals to other governmental agencies and entities 
147.20 	having jurisdiction over the subject matter. The commissioner may also make referrals 
147.21 	to any public or private agency the commissioner considers available for appropriate 
147.22 	assistance to those involved.
147.23 	The commissioner shall have standing to bring an action for injunctive relief 
147.24 	in the district court in the district in which an establishment is located to compel the 
147.25 	elderly housing with services establishment to meet the requirements of this chapter or 
147.26 	other requirements of the state or of any county or local governmental unit to which the 
147.27 	establishment is otherwise subject. Proceedings for securing an injunction may be brought 
147.28 	by the commissioner through the attorney general or through the appropriate county 
147.29 	attorney. The sanctions in this section do not restrict the availability of other sanctions.

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

147.31 	Sec. 13. Minnesota Statutes 2004, section 144D.065, is amended to read:
147.32 	144D.065 ESTABLISHMENTS THAT SERVE PERSONS WITH 
147.33 	ALZHEIMER'S DISEASE OR RELATED DISORDERS.
148.1 	(a) If a housing with services establishment registered under this chapter markets or 
148.2 	otherwise promotes services for persons with Alzheimer's disease or related disorders, 
148.3 	whether in a segregated or general unit, the facility's establishment's direct care staff and 
148.4 	their supervisors must be trained in dementia care.
148.5 	(b) Areas of required training include:
148.6 	(1) an explanation of Alzheimer's disease and related disorders;
148.7 	(2) assistance with activities of daily living;
148.8 	(3) problem solving with challenging behaviors; and
148.9 	(4) communication skills.
148.10 	(c) The establishment shall provide to consumers in written or electronic form a 
148.11 	description of the training program, the categories of employees trained, the frequency 
148.12 	of training, and the basic topics covered. This information satisfies the disclosure 
148.13 	requirements of section  325F.72, subdivision 2, clause (4). 

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

148.15 	Sec. 14. [144G.01] DEFINITIONS.
148.16 		Subdivision 1.Scope; other definitions. For purposes of sections 144G.01 to 
148.17 	144G.05, the following definitions apply. In addition, the definitions provided in section 
148.18 	144D.01 also apply to sections 144G.01 to 144G.05.
148.19 		Subd. 2.Assisted living. "Assisted living" means a service or package of services 
148.20 	advertised, marketed, or otherwise described, offered, or promoted using the phrase 
148.21 	"assisted living" either alone or in combination with other words, whether orally or in 
148.22 	writing, and which is subject to the requirements of this chapter.
148.23 		Subd. 3.Assisted living client. "Assisted living client" or "client" means a housing 
148.24 	with services resident who receives assisted living that is subject to the requirements 
148.25 	of this chapter.
148.26 		Subd. 4.Commissioner. "Commissioner" means the commissioner of health.

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

148.28 	Sec. 15. [144G.02] ASSISTED LIVING; PROTECTED TITLE; RESTRICTION 
148.29 	ON USE; REGULATORY FUNCTIONS.
148.30 		Subdivision 1.Protected title; restriction on use. No person or entity may use the 
148.31 	phrase "assisted living," whether alone or in combination with other words and whether 
148.32 	orally or in writing, to advertise, market, or otherwise describe, offer, or promote itself, or 
148.33 	any housing, service, service package, or program that it provides within this state, unless 
149.1 	the person or entity is a housing with services establishment that meets the requirements of 
149.2 	this chapter, or is a person or entity that provides some or all components of assisted living 
149.3 	that meet the requirements of this chapter. A person or entity entitled to use the phrase 
149.4 	"assisted living" shall use the phrase only in the context of its participation in assisted 
149.5 	living that meets the requirements of this chapter. A housing with services establishment 
149.6 	offering or providing assisted living that is not made available to residents in all of its 
149.7 	housing units shall identify the number or location of the units in which assisted living 
149.8 	is available, and may not use the term "assisted living" in the name of the establishment 
149.9 	registered with the commissioner under chapter 144D, or in the name the establishment 
149.10 	uses to identify itself to residents or the public.
149.11 		Subd. 2.Authority of commissioner. (a) The commissioner, upon receipt of 
149.12 	information that may indicate the failure of a housing with services establishment, the 
149.13 	arranged home care provider, an assisted living client, or an assisted living client's 
149.14 	representative to comply with a legal requirement to which one or more of the entities may 
149.15 	be subject, shall make appropriate referrals to other governmental agencies and entities 
149.16 	having jurisdiction over the subject matter. The commissioner may also make referrals 
149.17 	to any public or private agency the commissioner considers available for appropriate 
149.18 	assistance to those involved.
149.19 	(b) In addition to the authority with respect to licensed home care providers under 
149.20 	sections 144A.45 and 144A.46 and with respect to housing with services establishments 
149.21 	under chapter 144D, the commissioner shall have standing to bring an action for injunctive 
149.22 	relief in the district court in the district in which a housing with services establishment 
149.23 	is located to compel the housing with services establishment or the arranged home care 
149.24 	provider to meet the requirements of this chapter or other requirements of the state or of 
149.25 	any county or local governmental unit to which the establishment or arranged home care 
149.26 	provider is otherwise subject. Proceedings for securing an injunction may be brought by 
149.27 	the commissioner through the attorney general or through the appropriate county attorney. 
149.28 	The sanctions in this section do not restrict the availability of other sanctions.

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

149.30 	Sec. 16. [144G.03] ASSISTED LIVING REQUIREMENTS.
149.31 		Subdivision 1.Verification in annual registration. A registered housing with 
149.32 	services establishment using the phrase "assisted living," pursuant to section 144G.02, 
149.33 	subdivision 1, shall verify to the commissioner in its annual registration pursuant to chapter 
149.34 	144D that the establishment is complying with sections 144G.01 to 144G.05, as applicable.
150.1 		Subd. 2.Minimum requirements for assisted living. (a) Assisted living shall 
150.2 	be provided or made available only to individuals residing in a registered housing with 
150.3 	services establishment. Except as expressly stated in this chapter, a person or entity 
150.4 	offering assisted living may define the available services and may offer assisted living to 
150.5 	all or some of the residents of a housing with services establishment. The services that 
150.6 	comprise assisted living may be provided or made available directly by a housing with 
150.7 	services establishment or by persons or entities with which the housing with services 
150.8 	establishment has made arrangements.
150.9 	(b) A person or entity entitled to use the phrase "assisted living," according to 
150.10 	section 144G.02, subdivision 1, shall do so only with respect to a housing with services 
150.11 	establishment, or a service, service package, or program available within a housing with 
150.12 	services establishment that, at a minimum:
150.13 	(1) provides or makes available health-related services under a class A or class F 
150.14 	home care license. At a minimum, health-related services must include:
150.15 	(i) assistance with self-administration of medication as defined in Minnesota Rules, 
150.16 	part 4668.0003, subpart 2a, or medication administration as defined in Minnesota Rules, 
150.17 	part 4668.0003, subpart 21a; and
150.18 	(ii) assistance with at least three of the following seven activities of daily living: 
150.19 	bathing, dressing, grooming, eating, transferring, continence care, and toileting. 
150.20 	All health related services shall be provided in a manner that complies with applicable 
150.21 	home care licensure requirements in chapter 144A and Minnesota Rules, chapter 4668, 
150.22 	and with sections 148.171 to 148.285;
150.23 	(2) provides necessary assessments of the physical and cognitive needs of assisted 
150.24 	living clients by a registered nurse, as required by applicable home care licensure 
150.25 	requirements in chapter 144A and Minnesota Rules, chapter 4668, and by sections 
150.26 	148.171 to 148.285;
150.27 	(3) has and maintains a system for delegation of health care activities to unlicensed 
150.28 	assistive health care personnel by a registered nurse, including supervision and evaluation 
150.29 	of the delegated activities as required by applicable home care licensure requirements in 
150.30 	chapter 144A and Minnesota Rules, chapter 4668, and by sections 148.171 to 148.285;
150.31 	(4) provides staff access to an on-call registered nurse 24 hours per day, seven 
150.32 	days per week;
150.33 	(5) has and maintains a system to check on each assisted living client at least daily;
150.34 	(6) provides a means for assisted living clients to request assistance for health and 
150.35 	safety needs 24 hours per day, seven days per week, from the establishment or a person or 
150.36 	entity with which the establishment has made arrangements;
151.1 	(7) has a person or persons available 24 hours per day, seven days per week,  who 
151.2 	is responsible for responding to the requests of assisted living clients for assistance with 
151.3 	health or safety needs, who shall be:
151.4 	(i)	awake;
151.5 	(ii) located in the same building, in an attached building, or on a contiguous campus 
151.6 	with the housing with services establishment in order to respond within a reasonable 
151.7 	amount of time;
151.8 	(iii) capable of communicating with assisted living clients;
151.9 	(iv) capable of recognizing the need for assistance;
151.10 	(v) capable of providing either the assistance required or summoning the appropriate 
151.11 	assistance; and
151.12 	(vi) capable of following directions;
151.13 	(8) offers to provide or make available at least the following supportive services 
151.14 	to assisted living clients:
151.15 	(i)	two meals per day;
151.16 	(ii) weekly housekeeping;
151.17 	(iii) weekly laundry service;
151.18 	(iv) upon the request of the client, reasonable assistance with arranging for 
151.19 	transportation to medical and social services appointments, and the name of or other 
151.20 	identifying information about the person or persons responsible for providing this 
151.21 	assistance;
151.22 	(v) upon the request of the client, reasonable assistance with accessing community 
151.23 	resources and social services available in the community, and the name of or other 
151.24 	identifying information about the person or persons responsible for providing this 
151.25 	assistance; and
151.26 	(vi) periodic opportunities for socialization; and
151.27 	(9) makes available to all prospective and current assisted living clients information 
151.28 	consistent with the uniform format and the required components adopted by the 
151.29 	commissioner under section 144G.06. This information must be made available beginning 
151.30 	no later than six months after the commissioner makes the uniform format and required 
151.31 	components available to providers according to section 144G.06.
151.32 		Subd. 3.Exemption from awake-staff requirement. (a) A housing with services 
151.33 	establishment that offers or provides assisted living is exempt from the requirement in 
151.34 	subdivision 2, paragraph (b), clause (7), item (i), that the person or persons available and 
151.35 	responsible for responding to requests for assistance must be awake, if the establishment 
151.36 	meets the following requirements:
152.1 	(1) the establishment has a maximum capacity to serve 12 or fewer assisted living 
152.2 	clients;
152.3 	(2) the person or persons available and responsible for responding to requests for 
152.4 	assistance are physically present within the housing with services establishment in which 
152.5 	the assisted living clients reside;
152.6 	(3) the establishment has a system in place that is compatible with the health, safety, 
152.7 	and welfare of the establishment's assisted living clients;
152.8 	(4) the establishment's housing with services contract, as required by section 
152.9 	144D.04, includes a statement disclosing the establishment's qualification for, and 
152.10 	intention to rely upon, this exemption;
152.11 	(5) the establishment files with the commissioner, for purposes of public information 
152.12 	but not review or approval by the commissioner, a statement describing how the 
152.13 	establishment meets the conditions in clauses (1) to (5), and makes a copy of this statement 
152.14 	available to actual and prospective assisted living clients; and 
152.15 	(6) the establishment indicates on its housing with services registration, under 
152.16 	section 144D.02 or 144D.03, as applicable, that it qualifies for and intends to rely upon the 
152.17 	exemption under this subdivision.
152.18 		Subd. 4.Nursing assessment. (a) A housing with services establishment offering or 
152.19 	providing assisted living shall:
152.20 	(1) offer to have the arranged home care provider conduct a nursing assessment by 
152.21 	a registered nurse of the physical and cognitive needs of the prospective resident and 
152.22 	propose a service agreement or service plan prior to the date on which a prospective 
152.23 	resident executes a contract with a housing with services establishment or the date on 
152.24 	which a prospective resident moves in, whichever is earlier; and
152.25 	(2) inform the prospective resident of the availability of and contact information for 
152.26 	long-term care consultation services under section 256B.0911, prior to the date on which a 
152.27 	prospective resident executes a contract with a housing with services establishment or the 
152.28 	date on which a prospective resident moves in, whichever is earlier.
152.29 	(b) An arranged home care provider is not obligated to conduct a nursing assessment 
152.30 	by a registered nurse when requested by a prospective resident if either the geographic 
152.31 	distance between the prospective resident and the provider, or urgent or unexpected 
152.32 	circumstances, do not permit the assessment to be conducted prior to the date on which 
152.33 	the prospective resident executes a contract or moves in, whichever is earlier. When such 
152.34 	circumstances occur, the arranged home care provider shall offer to conduct a telephone 
152.35 	conference whenever reasonably possible. 
153.1 	(c) The arranged home care provider shall comply with applicable home care 
153.2 	licensure requirements in chapter 144A and Minnesota Rules, chapter 4668, and with 
153.3 	sections 148.171 to 148.285 with respect to the provision of a nursing assessment prior 
153.4 	to the delivery of nursing services and the execution of a home care service plan or 
153.5 	service agreement.
153.6 		Subd. 5.Assistance with arranged home care provider. The housing with services 
153.7 	establishment shall provide each assisted living client with identifying information about a 
153.8 	person or persons reasonably available to assist the client with concerns the client may 
153.9 	have with respect to the services provided by the arranged home care provider. The 
153.10 	establishment shall keep each assisted living client reasonably informed of any changes in 
153.11 	the personnel referenced in this subdivision. Upon request of the assisted living client, 
153.12 	such personnel or designee shall provide reasonable assistance to the assisted living client 
153.13 	in addressing concerns regarding services provided by the arranged home care provider.
153.14 		Subd. 6.Termination of housing with services contract. If a housing with 
153.15 	services establishment terminates a housing with services contract with an assisted living 
153.16 	client, the establishment shall provide the assisted living client, and the legal or designated 
153.17 	representative of the assisted living client, if any, with a written notice of termination 
153.18 	which includes the following information:
153.19 	(1) the effective date of termination;
153.20 	(2) the section of the contract that authorizes the termination;
153.21 	(3) without extending the termination notice period, an affirmative offer to meet with 
153.22 	the assisted living client and, if applicable, client representatives, within no more than five 
153.23 	business days of the date of the termination notice to discuss the termination;
153.24 	(4) an explanation that:
153.25 	(i)	the assisted living client must vacate the apartment, along with all personal 
153.26 	possessions, on or before the effective date of termination;
153.27 	(ii) failure to vacate the apartment by the date of termination may result in the filing 
153.28 	of an eviction action in court by the establishment, and that the assisted living client may 
153.29 	present a defense, if any, to the court at that time; and 
153.30 	(iii) the assisted living client may seek legal counsel in connection with the notice 
153.31 	of termination;
153.32 	(5) a statement that, with respect to the notice of termination, reasonable 
153.33 	accommodation is available for the disability of the assisted living client, if any; and
153.34 	(6) the name and contact information of the representative of the establishment 
153.35 	with whom the assisted living client or client representatives may discuss the notice of 
153.36 	termination.

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

154.2 	Sec. 17. [144G.04] RESERVATION OF RIGHTS.
154.3 		Subdivision 1.Use of services. Nothing in this chapter requires an assisted living 
154.4 	client to utilize any service provided or made available in assisted living.
154.5 		Subd. 2.Housing with services contracts. Nothing in this chapter requires a 
154.6 	housing with services establishment to execute or refrain from terminating a housing with 
154.7 	services contract with a prospective or current resident who is unable or unwilling to meet 
154.8 	the requirements of residency, with or without assistance. 
154.9 		Subd. 3.Provision of services. Nothing in this chapter requires the arranged home 
154.10 	care provider to offer or continue to provide services under a service agreement or service 
154.11 	plan to a prospective or current resident of the establishment whose needs cannot be 
154.12 	met by the arranged home care provider.
154.13 		Subd. 4.Altering operations; service packages. Nothing in this chapter requires 
154.14 	a housing with services establishment or arranged home care provider offering assisted 
154.15 	living to fundamentally alter the nature of the operations of the establishment or the 
154.16 	provider in order to accommodate the request or need for facilities or services by any 
154.17 	assisted living client, or to refrain from requiring, as a condition of residency, that an 
154.18 	assisted living client pay for a package of assisted living services even if the client does 
154.19 	not choose to utilize all or some of the services in the package.

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

154.21 	Sec. 18. [144G.05] REIMBURSEMENT UNDER  ASSISTED LIVING SERVICE 
154.22 	PACKAGES.
154.23 	Notwithstanding the provisions of this chapter, the requirements for the elderly 
154.24 	waiver program's assisted living payment rates under section 256B.0915, subdivision 
154.25 	3e, shall continue to be effective and providers who do not meet the requirements of 
154.26 	this chapter may continue to receive payment under section 256B.0915, subdivision 3e, 
154.27 	as long as they continue to meet the definitions and standards for assisted living and 
154.28 	assisted living plus set forth in the federally approved Elderly Home and Community 
154.29 	Based Services Waiver Program (Control Number 0025.91).
154.30 	Providers of assisted living for the Community Alternatives for Disabled Individuals 
154.31 	(CADI) and Traumatic Brain Injury (TBI) waivers shall continue to receive payment as 
154.32 	long as they continue to meet the definitions and standards for assisted living and assisted 
154.33 	living plus set forth in the federally approved CADI and TBI waiver plans.

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

155.2 	Sec. 19. [144G.06] UNIFORM CONSUMER INFORMATION GUIDE.
155.3 	(a) The commissioner of health shall establish an advisory committee consisting 
155.4 	of representatives of consumers, providers, county and state officials, and other 
155.5 	groups the commissioner considers appropriate. The advisory committee shall present 
155.6 	recommendations to the commissioner on:
155.7 	(1) a format for a guide to be used by individual providers of assisted living, as 
155.8 	defined in section 144G.01, that includes information about services offered by that 
155.9 	provider, service costs, and other relevant provider-specific information, as well as a 
155.10 	statement of philosophy and values associated with assisted living, presented in uniform 
155.11 	categories that facilitate comparison with guides issued by other providers; and
155.12 	(2) requirements for informing assisted living clients, as defined in section 144G.01, 
155.13 	of their applicable legal rights.
155.14 	(b) The commissioner, after reviewing the recommendations of the advisory 
155.15 	committee, shall adopt a uniform format for the guide to be used by individual providers, 
155.16 	and the required components of materials to be used by providers to inform assisted 
155.17 	living clients of their legal rights, and shall make the uniform format and the required 
155.18 	components available to assisted living providers.

155.19 	Sec. 20. Minnesota Statutes 2004, section 256.01, is amended by adding a subdivision 
155.20 	to read:
155.21 		Subd. 2b.Performance payments. The commissioner shall develop and implement 
155.22 	a pay-for-performance system to provide performance payments to medical groups that 
155.23 	demonstrate optimum care in serving individuals with chronic diseases who are enrolled 
155.24 	in health care programs administered by the commissioner under chapters 256B, 256D, 
155.25 	and 256L.

155.26 	Sec. 21. Minnesota Statutes 2004, section 256.01, is amended by adding a subdivision 
155.27 	to read:
155.28 		Subd. 23.Reverse mortgage information and referral. The commissioner, in 
155.29 	cooperation with the commissioner of the Minnesota Housing Finance Agency, shall: 
155.30 	(1) establish an information and referral system to inform eligible persons regarding 
155.31 	the availability of reverse mortgages and state incentives available to persons who take 
155.32 	out certain reverse mortgages. The information and referral system shall be established 
155.33 	involving the Senior LinkAge Line, county and tribal agencies, community housing 
156.1 	agencies and organizations, reverse mortgage counselors and lenders, senior and elder 
156.2 	community organizations, and other relevant entities; and 
156.3 	(2) coordinate necessary training for Senior LinkAge Line employees, mortgage 
156.4 	counselors, and lenders regarding the provisions of sections 256B.0913, subdivision 
156.5 	17, and 462A.05, subdivision 42.

156.6 	Sec. 22. [256.9545] PRESCRIPTION DRUG DISCOUNT PROGRAM.
156.7 		Subdivision 1.Establishment; administration.  The    commissioner shall establish 
156.8 	and administer the prescription drug discount program.
156.9 		Subd. 2.Commissioner's authority. The commissioner  shall administer a drug 
156.10 	rebate program for drugs purchased  according to the prescription drug discount program. 
156.11 	The  commissioner shall execute a rebate agreement from all  manufacturers that choose to 
156.12 	participate in the program for  those drugs covered under the medical assistance program. 
156.13 	For  each drug, the amount of the rebate shall be equal to the rebate  as defined for purposes 
156.14 	of the federal rebate program in United  States Code, title 42, section 1396r-8.  The 
156.15 	rebate program  shall utilize the terms and conditions used for the federal  rebate program 
156.16 	established according to section 1927 of title  XIX of the federal Social Security Act.
156.17 		Subd. 3.Definitions.  For purposes of this section,  the following terms have the 
156.18 	meanings given them.  
156.19 	(a) "Commissioner" means the commissioner of human services. 
156.20 	(b) "Covered prescription drug" means a prescription drug  as defined in section 
156.21 	151.44, paragraph (d), that is covered  under medical assistance as described in section 
156.22 	256B.0625,  subdivision 13, and that is provided by a participating  manufacturer that has a 
156.23 	fully executed rebate agreement with the  commissioner under this section and complies 
156.24 	with that agreement.
156.25 	(c) "Enrolled individual" means a person who is eligible  for the program under 
156.26 	subdivision 4 and has enrolled in the  program according to subdivision 5.
156.27 	(d) "Health carrier" means an insurance company licensed  under chapter 60A to 
156.28 	offer, sell, or issue an individual or  group policy of accident and sickness insurance as 
156.29 	defined in  section 62A.01; a nonprofit health service plan corporation  operating under 
156.30 	chapter 62C; a health maintenance organization  operating under chapter 62D; a joint 
156.31 	self-insurance employee  health plan operating under chapter 62H; a community integrated 
156.32 	service network licensed under chapter 62N; a fraternal benefit  society operating under 
156.33 	chapter 64B; a city, county, school  district, or other political subdivision providing 
156.34 	self-insured  health coverage under section 471.617 or sections 471.98 to  471.982; and a 
157.1 	self-funded health plan under the Employee  Retirement Income Security Act of 1974, as 
157.2 	amended. 
157.3 	(e) "Participating manufacturer" means a manufacturer as  defined in section 151.44, 
157.4 	paragraph (c), that agrees to  participate in the prescription drug discount program.   
157.5 	(f) "Participating pharmacy" means a pharmacy as defined in  section 151.01, 
157.6 	subdivision 2, that agrees to participate in the  prescription drug discount program.
157.7 		Subd. 4.Eligibility.  (a) To be eligible for the program, an  applicant must:
157.8 	(1) be a permanent resident of Minnesota as defined in  section 256L.09, subdivision 
157.9 	4;
157.10 	(2) not be enrolled in medical assistance,  general assistance medical care, or 
157.11 	MinnesotaCare;
157.12 	(3) not be enrolled in and have currently available  prescription drug coverage under 
157.13 	a health plan offered by a  health carrier or employer or under a pharmacy benefit program 
157.14 	offered by a pharmaceutical manufacturer; 
157.15 	(4) not be enrolled in and have currently available  prescription drug coverage under 
157.16 	a Medicare supplement policy, as  defined in sections 62A.31 to 62A.44; and 
157.17 	(5) have individual or family gross income equal to or less than 300 percent of the 
157.18 	federal poverty guidelines. The commissioner shall adjust the income limit each July 1 by 
157.19 	the annual update of the federal poverty guidelines following publication by the United 
157.20 	States Department of Health and Human Services.
157.21 	(b) Notwithstanding paragraph (a), clause (3), an individual who is enrolled in a 
157.22 	Medicare Part D prescription drug plan or Medicare Advantage plan is eligible for the 
157.23 	program but only for drugs that are not covered under the Medicare Part D plan or for 
157.24 	drugs that are covered under the plan, but according to the conditions of the plan, the 
157.25 	individual is responsible for 100 percent of the cost of the prescription drug. 
157.26 		Subd. 5.Application procedure.  (a) Applications and  information on the program 
157.27 	must be made available at county  social services agencies, health care provider offices, and 
157.28 	agencies and organizations serving senior citizens.  Individuals  shall submit applications 
157.29 	and any information specified by the  commissioner as being necessary to verify eligibility 
157.30 	directly  to the commissioner.  The commissioner shall determine an  applicant's eligibility 
157.31 	for the program within 30 days from the  date the application is received.  Upon notice of 
157.32 	approval, the  applicant must submit to the commissioner the enrollment fee  specified in 
157.33 	subdivision 10.  Eligibility begins the month after  the enrollment fee is received by the 
157.34 	commissioner.
157.35 	(b) An enrollee's eligibility must be renewed every 12  months with the 12-month 
157.36 	period beginning in the month after the  application is approved.
158.1 	(c) The commissioner shall develop an application form that  does not exceed one 
158.2 	page in length and requires information  necessary to determine eligibility for the program.
158.3 		Subd. 6.Participating pharmacy.  (a) Upon implementation  of the prescription 
158.4 	drug discount program, and until January 1,  2008, a participating pharmacy, with a 
158.5 	valid  prescription, must sell a covered prescription drug to an  enrolled individual at the 
158.6 	medical assistance rate.
158.7 	(b) After January 1, 2008, a participating pharmacy, with a valid prescription, must 
158.8 	sell a covered  prescription drug to an enrolled individual at the medical  assistance rate, 
158.9 	minus an amount that is equal to the rebate  amount described in subdivision 8. 
158.10 	(c) Each participating pharmacy shall provide the  commissioner with all information 
158.11 	necessary to administer the  program, including, but not limited to, information on 
158.12 	prescription drug sales to enrolled individuals and usual and  customary retail prices.
158.13 		Subd. 7.Notification of rebate amount.  The commissioner  shall notify each 
158.14 	participating manufacturer, each calendar  quarter or according to a schedule established 
158.15 	by the  commissioner, of the amount of the rebate owed on the  prescription drugs sold by 
158.16 	participating pharmacies to enrolled  individuals.
158.17 		Subd. 8.Provision of rebate.  To the extent that a  participating manufacturer's 
158.18 	prescription drugs are prescribed  to a resident of this state, the manufacturer must provide 
158.19 	a  rebate equal to the rebate provided under the medical assistance  program for any 
158.20 	prescription drug distributed by the  manufacturer that is purchased at a  participating 
158.21 	pharmacy by an enrolled individual.  The participating manufacturer must  provide full 
158.22 	payment within 38 days of receipt of the state  invoice for the rebate, or according to 
158.23 	a schedule to be  established by the commissioner.  The commissioner shall deposit  all 
158.24 	rebates received into the Minnesota prescription drug  dedicated fund established under 
158.25 	subdivision 11.  The  manufacturer must provide the commissioner with any information 
158.26 	necessary to verify the rebate determined per drug.
158.27 		Subd. 9.Payment to pharmacies.  Beginning January 1,  2008, the commissioner 
158.28 	shall distribute on a biweekly basis an  amount that is equal to an amount collected under 
158.29 	subdivision 8  to each participating pharmacy based on the prescription drugs  sold by that 
158.30 	pharmacy to enrolled individuals on or after  January 1, 2008.
158.31 		Subd. 10.Enrollment fee.  Beginning July 1, 2008, the  commissioner shall establish 
158.32 	an annual enrollment fee that  covers the commissioner's expenses for enrollment, 
158.33 	processing claims, and distributing rebates under this program.
158.34 		Subd. 11.Dedicated fund; creation; use of fund.  (a) The  Minnesota prescription 
158.35 	drug dedicated fund is established as an  account in the state treasury.  The commissioner 
158.36 	of finance  shall credit to the dedicated fund all rebates paid under  subdivision 8, any 
159.1 	federal funds received for the program, all  enrollment fees paid by the enrollees, and 
159.2 	any appropriations or  allocations designated for the fund.  The commissioner of  finance 
159.3 	shall ensure that fund money is invested under section  11A.25.  All money earned by the 
159.4 	fund must be credited to the  fund.  The fund shall earn a proportionate share of the total 
159.5 	state annual investment income.
159.6 	(b) Money in the fund is appropriated to the commissioner  to reimburse participating 
159.7 	pharmacies for prescription drugs provided to enrolled individuals under  subdivision 6, 
159.8 	paragraph (b); to reimburse the commissioner for  costs related to enrollment, processing 
159.9 	claims, and distributing  rebates and for other reasonable administrative costs related to 
159.10 	administration of the prescription drug discount program; and to  repay the appropriation 
159.11 	provided by law for this section.  The  commissioner must administer the program so that 
159.12 	the costs total  no more than funds appropriated plus the drug rebate proceeds.

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

159.14 	Sec. 23. Minnesota Statutes 2004, section 256.975, subdivision 7, is amended to read:
159.15 		Subd. 7.Consumer information and assistance; Senior LinkAge. (a) The 
159.16 	Minnesota Board on Aging shall operate a statewide information and assistance service 
159.17 	to aid older Minnesotans and their families in making informed choices about long-term 
159.18 	care options and health care benefits. Language services to persons with limited English 
159.19 	language skills may be made available. The service, known as Senior LinkAge Line, must 
159.20 	be available during business hours through a statewide toll-free number and must also 
159.21 	be available through the Internet.
159.22 	(b) The service must assist older adults, caregivers, and providers in accessing 
159.23 	information about choices in long-term care services that are purchased through private 
159.24 	providers or available through public options. The service must:
159.25 	(1) develop a comprehensive database that includes detailed listings in both 
159.26 	consumer- and provider-oriented formats;
159.27 	(2) make the database accessible on the Internet and through other telecommunication 
159.28 	and media-related tools;
159.29 	(3) link callers to interactive long-term care screening tools and make these tools 
159.30 	available through the Internet by integrating the tools with the database;
159.31 	(4) develop community education materials with a focus on planning for long-term 
159.32 	care and evaluating independent living, housing, and service options;
159.33 	(5) conduct an outreach campaign to assist older adults and their caregivers in 
159.34 	finding information on the Internet and through other means of communication;
160.1 	(6) implement a messaging system for overflow callers and respond to these callers 
160.2 	by the next business day;
160.3 	(7) link callers with county human services and other providers to receive more 
160.4 	in-depth assistance and consultation related to long-term care options; and
160.5 	(8) provide information and assistance to inform older adults about reverse 
160.6 	mortgages, including the provisions of sections 47.58; 256B.0913, subdivision 17; and 
160.7 	462A.05, subdivision 42; and
160.8 	(9) link callers with quality profiles for nursing facilities and other providers 
160.9 	developed by the commissioner of health.
160.10 	(c) The Minnesota Board on Aging shall conduct an evaluation of the effectiveness 
160.11 	of the statewide information and assistance, and submit this evaluation to the legislature 
160.12 	by December 1, 2002. The evaluation must include an analysis of funding adequacy, gaps 
160.13 	in service delivery, continuity in information between the service and identified linkages, 
160.14 	and potential use of private funding to enhance the service.

160.15 	Sec. 24. Minnesota Statutes 2004, section 256B.0625, is amended by adding a 
160.16 	subdivision to read:
160.17 		Subd. 13i.Medicare Part D co-payments. For recipients who are enrolled in a 
160.18 	Medicare Part D prescription drug plan or Medicare Advantage plan, medical assistance 
160.19 	covers the co-payments which the recipient is responsible for under the Medicare Part D 
160.20 	prescription drug plan or Medicare Advantage plan. 

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

160.22 	Sec. 25. Minnesota Statutes 2005 Supplement, section 256B.075, subdivision 2, 
160.23 	is amended to read:
160.24 		Subd. 2.Fee-for-service. (a) The commissioner shall develop and implement 
160.25 	a disease management program for medical assistance and general assistance medical 
160.26 	care recipients who are not enrolled in the prepaid medical assistance or prepaid general 
160.27 	assistance medical care programs and who are receiving services on a fee-for-service 
160.28 	basis. The commissioner may contract with an outside organization to provide these
160.29 	services under this subdivision.
160.30 	(b) The commissioner shall seek any federal approval necessary to implement this 
160.31 	section and to obtain federal matching funds.
160.32 	(c) The commissioner shall develop and implement a pilot intensive care 
160.33 	management program for medical assistance children with complex and chronic medical 
161.1 	issues who are not able to participate in the metro-based U Special Kids program due 
161.2 	to geographic distance.
161.3 	(d) The commissioner shall develop and implement an intensive care management 
161.4 	pilot program for children, adults, and families who have complex and chronic medical 
161.5 	conditions, or who are at high risk of developing them, and who receive their primary 
161.6 	care through a federally qualified health center or community clinic. For purposes of 
161.7 	this paragraph, "federally qualified health center" means an entity that is receiving a 
161.8 	grant under United States Code, title 42, section 254b, or, based on the recommendation 
161.9 	of the Health Resources and Services Administration within the Public Health Service, 
161.10 	is determined by the secretary to meet the requirements for receiving such a grant; and 
161.11 	"community clinic" means a clinic that is not a federally qualified health center, but is 
161.12 	certified by the Minnesota Department of Health as being eligible to receive a grant under 
161.13 	section 145.9268.

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

161.15 	Sec. 26. Minnesota Statutes 2005 Supplement, section 256B.0911, subdivision 1a, 
161.16 	is amended to read:
161.17 		Subd. 1a.Definitions. For purposes of this section, the following definitions apply:
161.18 	(a) "Long-term care consultation services" means:
161.19 	(1) providing information and education to the general public regarding availability 
161.20 	of the services authorized under this section;
161.21 	(2) an intake process that provides access to the services described in this section;
161.22 	(3) assessment of the health, psychological, and social needs of referred individuals;
161.23 	(4) assistance in identifying services needed to maintain an individual in the least 
161.24 	restrictive environment;
161.25 	(5) providing recommendations on cost-effective community services that are 
161.26 	available to the individual;
161.27 	(6) development of an individual's community support plan, which may include the 
161.28 	use of reverse mortgage payments to pay for services needed to maintain the individual in 
161.29 	the person's home;
161.30 	(7) providing information regarding eligibility for Minnesota health care programs;
161.31 	(8) preadmission screening to determine the need for a nursing facility level of care;
161.32 	(9) preliminary determination of Minnesota health care programs eligibility for 
161.33 	individuals who need a nursing facility level of care, with appropriate referrals for final 
161.34 	determination;
162.1 	(10) providing recommendations for nursing facility placement when there are no 
162.2 	cost-effective community services available; and
162.3 	(11) assistance to transition people back to community settings after facility 
162.4 	admission.
162.5 	(b) "Minnesota health care programs" means the medical assistance program under 
162.6 	chapter 256B and the alternative care program under section 256B.0913.

162.7 	Sec. 27. Minnesota Statutes 2004, section 256B.0911, subdivision 3a, is amended to 
162.8 	read:
162.9 		Subd. 3a.Assessment and support planning. (a) Persons requesting assessment, 
162.10 	services planning, or other assistance intended to support community-based living must be 
162.11 	visited by a long-term care consultation team within ten working days after the date on 
162.12 	which an assessment was requested or recommended. Assessments must be conducted 
162.13 	according to paragraphs (b) to (g).
162.14 	(b) The county may utilize a team of either the social worker or public health nurse, 
162.15 	or both, to conduct the assessment in a face-to-face interview. The consultation team 
162.16 	members must confer regarding the most appropriate care for each individual screened or 
162.17 	assessed.
162.18 	(c) The long-term care consultation team must assess the health and social needs of 
162.19 	the person, using an assessment form provided by the commissioner.
162.20 	(d) The team must conduct the assessment in a face-to-face interview with the 
162.21 	person being assessed and the person's legal representative, if applicable.
162.22 	(e) The team must provide the person, or the person's legal representative, with 
162.23 	written recommendations for facility- or community-based services. The team must 
162.24 	document that the most cost-effective alternatives available were offered to the individual. 
162.25 	For purposes of this requirement, "cost-effective alternatives" means community services 
162.26 	and living arrangements that cost the same as or less than nursing facility care.
162.27 	(f) If the person chooses to use community-based services, the team must provide 
162.28 	the person or the person's legal representative with a written community support plan, 
162.29 	regardless of whether the individual is eligible for Minnesota health care programs. 
162.30 	The person may request assistance in developing a community support plan without 
162.31 	participating in a complete assessment. If the person chooses to obtain a reverse mortgage 
162.32 	under section 47.58 as part of the community support plan, the plan must include a 
162.33 	spending plan for the reverse mortgage payments.
163.1 	(g) The team must give the person receiving assessment or support planning, or 
163.2 	the person's legal representative, materials supplied by the commissioner containing 
163.3 	the following information:
163.4 	(1) the purpose of preadmission screening and assessment;
163.5 	(2) information about Minnesota health care programs and about reverse mortgages, 
163.6 	including the provisions of sections 47.58; 256B.0913, subdivision 17;  and 462A.05, 
163.7 	subdivision 42;
163.8 	(3) the person's freedom to accept or reject the recommendations of the team;
163.9 	(4) the person's right to confidentiality under the Minnesota Government Data 
163.10 	Practices Act, chapter 13; and
163.11 	(5) the person's right to appeal the decision regarding the need for nursing facility 
163.12 	level of care or the county's final decisions regarding public programs eligibility according 
163.13 	to section  256.045, subdivision 3. 

163.14 	Sec. 28. Minnesota Statutes 2004, section 256B.0913, is amended by adding a 
163.15 	subdivision to read:
163.16 		Subd. 17.Services for persons using reverse mortgages. (a) Alternative care 
163.17 	services are available to a person who satisfies the following criteria:
163.18 	(1) the person qualifies for the reverse mortgage incentive program under section 
163.19 	462A.05, subdivision 42, and has received the final payment on a qualifying reverse 
163.20 	mortgage, or the person satisfies the criteria in section 462A.05, subdivision 42, paragraph 
163.21 	(b), clauses (1) to (5), and has otherwise obtained a reverse mortgage and payments 
163.22 	received from the reverse mortgage for a period of at least 24 months or in an amount of 
163.23 	at least $15,000 are used for services and supports, including basic shelter needs, home 
163.24 	maintenance, and modifications or adaptations, necessary to allow the person to remain in 
163.25 	the home as an alternative to a nursing facility placement; and
163.26 	(2) the person satisfies the eligibility criteria under this section, other than age, 
163.27 	income, and assets, and verifies that reverse mortgage expenditures were made according 
163.28 	to the spending plan established under section 256B.0911, if one has been established.
163.29 	(b) In addition to the other services provided under this section, a person who 
163.30 	qualifies under this subdivision shall not be assessed a monthly participation fee under 
163.31 	subdivision 12 nor be subject to an estate claim under section 256B.15 for services 
163.32 	received under this section.
163.33 	(c) The commissioner shall require a certification of loan satisfaction or other 
163.34 	documentation that the person qualifies under this subdivision.

164.1 	Sec. 29. Minnesota Statutes 2005 Supplement, section 256B.0918, subdivision 1, 
164.2 	is amended to read:
164.3 		Subdivision 1.Program criteria. Beginning on or after October 1, 2005, within 
164.4 	the limits of appropriations specifically available for this purpose, the commissioner shall 
164.5 	provide funding to qualified provider applicants for employee scholarships for education 
164.6 	in nursing and other health care fields. Employee scholarships must be for a course of 
164.7 	study that is expected to lead to career advancement with the provider or in the field 
164.8 	of long-term care, including home care or care of persons with disabilities, or nursing. 
164.9 	Providers that secure this funding must use it to award scholarships to employees who 
164.10 	work an average of at least 20 hours per week for the provider. Executive management 
164.11 	staff without direct care duties, registered nurses, and therapists are not eligible to receive 
164.12 	scholarships under this section.

164.13 	Sec. 30. Minnesota Statutes 2005 Supplement, section 256B.0918, subdivision 3, 
164.14 	is amended to read:
164.15 		Subd. 3.Provider selection criteria. To be considered for scholarship funding, 
164.16 	the provider shall submit a completed application within the time frame specified by the 
164.17 	commissioner. In awarding funding, the commissioner shall consider the following:
164.18 	(1) the size of the provider as measured in annual billing to the medical assistance 
164.19 	program. To be eligible, a provider must receive at least $500,000$300,000 annually 
164.20 	in medical assistance payments;
164.21 	(2) the percentage of employees meeting the scholarship program recipient 
164.22 	requirements;
164.23 	(3) staff retention rates for paraprofessionals; and
164.24 	(4) other criteria determined by the commissioner.

164.25 	Sec. 31. Minnesota Statutes 2005 Supplement, section 256B.0918, subdivision 4, 
164.26 	is amended to read:
164.27 		Subd. 4.Funding specifics. Within the limits of appropriations specifically 
164.28 	available for this purpose, for the rate period beginning on or after October 1, 2005, to 
164.29 	September 30, 2007, the commissioner shall provide to each provider listed in subdivision 
164.30 	2 and awarded funds under subdivision 3 a medical assistance rate increase to fund 
164.31 	scholarships up to two-tenthsthree-tenths percent of the medical assistance reimbursement 
164.32 	rate. The commissioner shall require providers to repay any portion of funds awarded 
164.33 	under subdivision 3 that is not used to fund scholarships. If applications exceed available 
164.34 	funding, funding shall be targeted to providers that employ a higher percentage of 
165.1 	paraprofessional staff or have lower rates of turnover of paraprofessional staff. During 
165.2 	the subsequent years of the program, the rate adjustment may be recalculated, at the 
165.3 	discretion of the commissioner. In making a recalculation the commissioner may consider 
165.4 	the provider's success at granting scholarships based on the amount spent during the 
165.5 	previous year and the availability of appropriations to continue the program.

165.6 	Sec. 32. Minnesota Statutes 2004, section 256B.15, is amended by adding a 
165.7 	subdivision to read:
165.8 		Subd. 9.Recovery of alternative care and certain reverse mortgages. The state 
165.9 	and a county agency shall not recover alternative care paid for a person under section 
165.10 	256B.0913, subdivision 17, under this section.

165.11 	Sec. 33. Minnesota Statutes 2005 Supplement, section 256B.434, subdivision 4, 
165.12 	is amended to read:
165.13 		Subd. 4.Alternate rates for nursing facilities. (a) For nursing facilities which 
165.14 	have their payment rates determined under this section rather than section 256B.431, the 
165.15 	commissioner shall establish a rate under this subdivision. The nursing facility must enter 
165.16 	into a written contract with the commissioner.
165.17 	(b) A nursing facility's case mix payment rate for the first rate year of a facility's 
165.18 	contract under this section is the payment rate the facility would have received under 
165.19 	section 256B.431.
165.20 	(c) A nursing facility's case mix payment rates for the second and subsequent years 
165.21 	of a facility's contract under this section are the previous rate year's contract payment 
165.22 	rates plus an inflation adjustment and, for facilities reimbursed under this section or 
165.23 	section 256B.431, an adjustment to include the cost of any increase in Health Department 
165.24 	licensing fees for the facility taking effect on or after July 1, 2001. The index for the 
165.25 	inflation adjustment must be based on the change in the Consumer Price Index-All Items 
165.26 	(United States City average) (CPI-U) forecasted by the commissioner of finance's national 
165.27 	economic consultant, as forecasted in the fourth quarter of the calendar year preceding 
165.28 	the rate year. The inflation adjustment must be based on the 12-month period from the 
165.29 	midpoint of the previous rate year to the midpoint of the rate year for which the rate is 
165.30 	being determined. For the rate years beginning on July 1, 1999, July 1, 2000, July 1, 2001, 
165.31 	July 1, 2002, July 1, 2003, July 1, 2004, July 1, 2005, July 1, 2006, July 1, 2007, and July 
165.32 	1, 2008, this paragraph shall apply only to the property-related payment rate, except 
165.33 	that adjustments to include the cost of any increase in Health Department licensing fees 
165.34 	taking effect on or after July 1, 2001, shall be provided. Beginning in 2005, adjustment to 
166.1 	the property payment rate under this section and section 256B.431 shall be effective on 
166.2 	October 1. In determining the amount of the property-related payment rate adjustment 
166.3 	under this paragraph, the commissioner shall determine the proportion of the facility's 
166.4 	rates that are property-related based on the facility's most recent cost report. Beginning 
166.5 	October 1, 2006, facilities reimbursed under this section shall be allowed to receive a 
166.6 	property rate adjustment for building projects under section 144A.071, subdivision 2.
166.7 	(d) The commissioner shall develop additional incentive-based payments of up to 
166.8 	five percent above a facility's operating payment rate for achieving outcomes specified 
166.9 	in a contract. The commissioner may solicit contract amendments and implement those 
166.10 	which, on a competitive basis, best meet the state's policy objectives. The commissioner 
166.11 	shall limit the amount of any incentive payment and the number of contract amendments 
166.12 	under this paragraph to operate the incentive payments within funds appropriated for this 
166.13 	purpose. The contract amendments may specify various levels of payment for various 
166.14 	levels of performance. Incentive payments to facilities under this paragraph may be in 
166.15 	the form of time-limited rate adjustments or supplemental payments. In establishing the 
166.16 	specified outcomes and related criteria, the commissioner shall consider the following 
166.17 	state policy objectives:
166.18 	(1) successful diversion or discharge of residents to the residents' prior home or 
166.19 	other community-based alternatives;
166.20 	(2) adoption of new technology to improve quality or efficiency; 
166.21 	(3) improved quality as measured in the Nursing Home Report Card; 
166.22 	(4) reduced acute care costs; and
166.23 	(5) any additional outcomes proposed by a nursing facility that the commissioner 
166.24 	finds desirable.

166.25 	Sec. 34. Minnesota Statutes 2004, section 256B.437, subdivision 3, is amended to read:
166.26 		Subd. 3.Applications for planned closure of nursing facilities. (a) By August 
166.27 	15, 2001, the commissioner of human services shall implement and announce a program 
166.28 	for closure or partial closure of nursing facilities. Names and identifying information 
166.29 	provided in response to the announcement shall remain private unless approved, according 
166.30 	to the timelines established in the plan. The announcement must specify:
166.31 	(1) the criteria in subdivision 4 that will be used by the commissioner to approve or 
166.32 	reject applications;
166.33 	(2) the information that must accompany an application; and
166.34 	(3) that applications may combine planned closure rate adjustments with moratorium 
166.35 	exception funding, in which case a single application may serve both purposes.
167.1 	Between August 1, 2001, and June 30, 2003, the commissioner may approve planned 
167.2 	closures of up to 5,140 nursing facility beds, less the number of beds delicensed in 
167.3 	facilities during the same time period without approved closure plans or that have notified 
167.4 	the commissioner of health of their intent to close without an approved closure plan. 
167.5 	Beginning July 1, 2004, the commissioner may negotiate a planned closure for nursing 
167.6 	facilities providing the proposal has no cost to the state.
167.7 	(b) A facility or facilities reimbursed under section  256B.431 or  256B.434 with a 
167.8 	closure plan approved by the commissioner under subdivision 5 may assign a planned 
167.9 	closure rate adjustment to another facility or facilities that are not closing or in the case of 
167.10 	a partial closure, to the facility undertaking the partial closure. A facility may also elect to 
167.11 	have a planned closure rate adjustment shared equally by the five nursing facilities with 
167.12 	the lowest total operating payment rates in the state development region designated under 
167.13 	section  462.385, in which the facility that is closing is located. The planned closure 
167.14 	rate adjustment must be calculated under subdivision 6. Facilities that delicense beds 
167.15 	without a closure plan, or whose closure plan is not approved by the commissioner, are not 
167.16 	eligible to assign a planned closure rate adjustment under subdivision 6, unless they are 
167.17 	delicensing five or fewer beds, or less than six percent of their total licensed bed capacity, 
167.18 	whichever is greater, are located in a county in the top three quartiles of beds per 1,000 
167.19 	persons aged 65 or older, and have not delicensed beds in the prior three months. Facilities 
167.20 	meeting these criteria are eligible to assign the amount calculated under subdivision 6 to 
167.21 	themselves. If a facility is delicensing the greater of six or more beds, or six percent or 
167.22 	more of its total licensed bed capacity, and does not have an approved closure plan or is 
167.23 	not eligible for the adjustment under subdivision 6, the commissioner shall calculate the 
167.24 	amount the facility would have been eligible to assign under subdivision 6, and shall use 
167.25 	this amount to provide equal rate adjustments to the five nursing facilities with the lowest 
167.26 	total operating payment rates in the state development region designated under section  
167.27 	462.385, in which the facility that delicensed beds is located. 
167.28 	(c) To be considered for approval, an application must include:
167.29 	(1) a description of the proposed closure plan, which must include identification of 
167.30 	the facility or facilities to receive a planned closure rate adjustment;
167.31 	(2) the proposed timetable for any proposed closure, including the proposed dates 
167.32 	for announcement to residents, commencement of closure, and completion of closure;
167.33 	(3) if available, the proposed relocation plan for current residents of any facility 
167.34 	designated for closure. If a relocation plan is not available, the application must include a 
167.35 	statement agreeing to develop a relocation plan designed to comply with section  144A.161; 
168.1 	(4) a description of the relationship between the nursing facility that is proposed for 
168.2 	closure and the nursing facility or facilities proposed to receive the planned closure rate 
168.3 	adjustment. If these facilities are not under common ownership, copies of any contracts, 
168.4 	purchase agreements, or other documents establishing a relationship or proposed 
168.5 	relationship must be provided;
168.6 	(5) documentation, in a format approved by the commissioner, that all the nursing 
168.7 	facilities receiving a planned closure rate adjustment under the plan have accepted joint 
168.8 	and several liability for recovery of overpayments under section  256B.0641, subdivision 
168.9 	2, for the facilities designated for closure under the plan; and 
168.10 	(6) an explanation of how the application coordinates with planning efforts under 
168.11 	subdivision 2. If the planning group does not support a level of nursing facility closures 
168.12 	that the commissioner considers to be reasonable, the commissioner may approve a 
168.13 	planned closure proposal without its support.
168.14 	(d) The application must address the criteria listed in subdivision 4.
168.15 	(e) After April 1, 2006, in consideration of the authority provided in section 
168.16 	144A.071, subdivision 4c, paragraph (a), clause (4), the commissioner shall not approve 
168.17 	an application for planned closure and shall not provide a planned closure rate adjustment 
168.18 	under this subdivision, and shall not provide a single-bed incentive under section 
168.19 	256B.431, subdivision 42, for any bed closures in Cass County.

168.20 	Sec. 35. Minnesota Statutes 2004, section 256B.69, subdivision 9, is amended to read:
168.21 		Subd. 9.Reporting. (a) Each demonstration provider shall submit information as 
168.22 	required by the commissioner, including data required for assessing client satisfaction, 
168.23 	quality of care, cost, and utilization of services for purposes of project evaluation. The 
168.24 	commissioner shall also develop methods of data reporting and collection from county 
168.25 	advocacy activities in order to provide aggregate enrollee information on encounters 
168.26 	and outcomes to determine access and quality assurance. Required information shall be 
168.27 	specified before the commissioner contracts with a demonstration provider.
168.28 	(b) Aggregate nonpersonally identifiable health plan encounter data, aggregate 
168.29 	spending data for major categories of service as reported to the commissioners of health 
168.30 	and commerce under section 62D.08, subdivision 3, and criteria for service authorization 
168.31 	and service use are public data that the commissioner shall make available and use 
168.32 	in public reports. The commissioner shall require each health plan and county-based 
168.33 	purchasing plan to provide:
169.1 	(1) encounter data for each service provided, using standard codes and unit of 
169.2 	service definitions set by the commissioner, in a form that the commissioner can report by 
169.3 	age, eligibility groups, and health plan; and
169.4 	(2) criteria, written policies, and procedures required to be disclosed under section 
169.5 	62M.10, subdivision 7, and Code of Federal Regulations, title 42, part 438.210(b)(1), used 
169.6 	for each type of service for which authorization is required.

169.7 	Sec. 36. Minnesota Statutes 2005 Supplement, section 256B.69, subdivision 23, 
169.8 	is amended to read:
169.9 		Subd. 23.Alternative services; elderly and disabled persons. (a) The 
169.10 	commissioner may implement demonstration projects to create alternative integrated 
169.11 	delivery systems for acute and long-term care services to elderly persons and persons 
169.12 	with disabilities as defined in section 256B.77, subdivision 7a, that provide increased 
169.13 	coordination, improve access to quality services, and mitigate future cost increases. 
169.14 	The commissioner may seek federal authority to combine Medicare and Medicaid 
169.15 	capitation payments for the purpose of such demonstrations and may contract with 
169.16 	Medicare-approved special needs plans to provide Medicaid services. Medicare funds and 
169.17 	services shall be administered according to the terms and conditions of the federal waiver 
169.18 	and demonstration provisions. For the purpose of administering medical assistance funds, 
169.19 	demonstrations under this subdivision are subject to subdivisions 1 to 22. The provisions 
169.20 	of Minnesota Rules, parts 9500.1450 to 9500.1464, apply to these demonstrations, with the 
169.21 	exceptions of parts 9500.1452, subpart 2, item B; and 9500.1457, subpart 1, items B and 
169.22 	C, which do not apply to persons enrolling in demonstrations under this section. An initial 
169.23 	open enrollment period may be provided. Persons who disenroll from demonstrations 
169.24 	under this subdivision remain subject to Minnesota Rules, parts 9500.1450 to 9500.1464. 
169.25 	When a person is enrolled in a health plan under these demonstrations and the health 
169.26 	plan's participation is subsequently terminated for any reason, the person shall be provided 
169.27 	an opportunity to select a new health plan and shall have the right to change health plans 
169.28 	within the first 60 days of enrollment in the second health plan. Persons required to 
169.29 	participate in health plans under this section who fail to make a choice of health plan shall 
169.30 	not be randomly assigned to health plans under these demonstrations. Notwithstanding 
169.31 	section 256L.12, subdivision 5, and Minnesota Rules, part 9505.5220, subpart 1, item A, 
169.32 	if adopted, for the purpose of demonstrations under this subdivision, the commissioner 
169.33 	may contract with managed care organizations, including counties, to serve only elderly 
169.34 	persons eligible for medical assistance, elderly and disabled persons, or disabled persons 
169.35 	only. For persons with primary diagnoses of mental retardation or a related condition, 
170.1 	serious and persistent mental illness, or serious emotional disturbance, the commissioner 
170.2 	must ensure that the county authority has approved the demonstration and contracting 
170.3 	design. Enrollment in these projects for persons with disabilities shall be voluntary. The 
170.4 	commissioner shall not implement any demonstration project under this subdivision for 
170.5 	persons with primary diagnoses of mental retardation or a related condition, serious and 
170.6 	persistent mental illness, or serious emotional disturbance, without approval of the county 
170.7 	board of the county in which the demonstration is being implemented.
170.8 	(b) Notwithstanding chapter 245B, sections 252.40 to 252.46, 256B.092, 256B.501
170.9 	to 256B.5015, and Minnesota Rules, parts 9525.0004 to 9525.0036, 9525.1200 to 
170.10 	9525.1330, 9525.1580, and 9525.1800 to 9525.1930, the commissioner may implement 
170.11 	under this section projects for persons with developmental disabilities. The commissioner 
170.12 	may capitate payments for ICF/MR services, waivered services for mental retardation or 
170.13 	related conditions, including case management services, day training and habilitation and 
170.14 	alternative active treatment services, and other services as approved by the state and by the 
170.15 	federal government. Case management and active treatment must be individualized and 
170.16 	developed in accordance with a person-centered plan. Costs under these projects may not 
170.17 	exceed costs that would have been incurred under fee-for-service. Beginning July 1, 2003, 
170.18 	and until two years after the pilot project implementation date, subcontractor participation 
170.19 	in the long-term care developmental disability pilot is limited to a nonprofit long-term 
170.20 	care system providing ICF/MR services, home and community-based waiver services, 
170.21 	and in-home services to no more than 120 consumers with developmental disabilities in 
170.22 	Carver, Hennepin, and Scott Counties. The commissioner shall report to the legislature 
170.23 	prior to expansion of the developmental disability pilot project. This paragraph expires 
170.24 	two years after the implementation date of the pilot project.
170.25 	(c) Before implementation of a demonstration project for disabled persons, the 
170.26 	commissioner must provide information to appropriate committees of the house of 
170.27 	representatives and senate and must involve representatives of affected disability groups 
170.28 	in the design of the demonstration projects.
170.29 	(d) A nursing facility reimbursed under the alternative reimbursement methodology 
170.30 	in section 256B.434 may, in collaboration with a hospital, clinic, or other health care entity 
170.31 	provide services under paragraph (a). The commissioner shall amend the state plan and 
170.32 	seek any federal waivers necessary to implement this paragraph.
170.33 	(e) The commissioner, in consultation with the commissioners of commerce and 
170.34 	health, may approve and implement programs for all-inclusive care for the elderly (PACE) 
170.35 	according to federal laws and regulations governing that program and state laws or rules 
170.36 	applicable to participating providers. The process for approval of these programs shall 
171.1 	begin only after the commissioner receives grant money in an amount sufficient to cover 
171.2 	the state share of the administrative and actuarial costs to implement the programs during 
171.3 	state fiscal years 2006 and 2007. Grant amounts for this purpose shall be deposited in an 
171.4 	account in the special revenue fund and are appropriated to the commissioner to be used 
171.5 	solely for the purpose of PACE administrative and actuarial costs. A PACE provider is 
171.6 	not required to be licensed or certified as a health plan company as defined in section 
171.7 	62Q.01, subdivision 4. Persons age 55 and older who have been screened by the county 
171.8 	and found to be eligible for services under the elderly waiver or community alternatives 
171.9 	for disabled individuals or who are already eligible for Medicaid but meet level of 
171.10 	care criteria for receipt of waiver services may choose to enroll in the PACE program. 
171.11 	Medicare and Medicaid services will be provided according to this subdivision and 
171.12 	federal Medicare and Medicaid requirements governing PACE providers and programs. 
171.13 	PACE enrollees will receive Medicaid home and community-based services through the 
171.14 	PACE provider as an alternative to services for which they would otherwise be eligible 
171.15 	through home and community-based waiver programs and Medicaid State Plan Services. 
171.16 	The commissioner shall establish Medicaid rates for PACE providers that do not exceed 
171.17 	costs that would have been incurred under fee-for-service or other relevant managed care 
171.18 	programs operated by the state.
171.19 	(f) The commissioner shall seek federal approval to expand the Minnesota disability 
171.20 	health options (MnDHO) program established under this subdivision in stages, first to 
171.21 	regional population centers outside the seven-county metro area and then to all areas 
171.22 	of the state. Until January 1, 2008, expansion for MnDHO projects that include home 
171.23 	and community-based services is limited to the two projects and service areas in effect 
171.24 	on March 1, 2006.  Enrollment in integrated MnDHO programs that include home and 
171.25 	community-based services shall remain voluntary. Costs for home and community-based 
171.26 	services included under MnDHO must not exceed costs that would have been incurred 
171.27 	under the fee-for-service program. In developing program specifications for expansion of 
171.28 	integrated programs, the commissioner shall involve and consult the state-level stakeholder 
171.29 	group established in subdivision 28, paragraph (d), including consultation on whether and 
171.30 	how to include home and community-based waiver programs. Plans for further expansion 
171.31 	of MnDHO projects shall be presented to the chairs of the house and senate committees 
171.32 	with jurisdiction over health and human services policy and finance by February 1, 2007.
171.33 	(g) Notwithstanding section 256B.0261, health plans providing services under this 
171.34 	section are responsible for home care targeted case management and relocation targeted 
171.35 	case management. Services must be provided according to the terms of the waivers and 
171.36 	contracts approved by the federal government.

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

172.2 	Sec. 37. Minnesota Statutes 2004, section 256B.69, is amended by adding a 
172.3 	subdivision to read:
172.4 		Subd. 28.Medicare special needs plans and medical assistance basic health 
172.5 	care for persons with disabilities. (a) The commissioner may contract with qualified 
172.6 	Medicare-approved special needs plans to provide medical assistance basic health care 
172.7 	services to persons with disabilities, including those with developmental disabilities. 
172.8 	Basic health care services include:
172.9 	(1) those services covered by the medical assistance state plan except for ICF/MR 
172.10 	services, home and community-based waiver services, case management for persons with 
172.11 	developmental disabilities under section 256B.0625, subdivision 20a, and personal care 
172.12 	and certain home care services defined by the commissioner in consultation with the 
172.13 	stakeholder group established under paragraph (d); and
172.14 	(2) basic health care services may also include risk for up to 100 days of nursing 
172.15 	facility services for persons who reside in a noninstitutional setting and home health 
172.16 	services related to rehabilitation as defined by the commissioner after consultation with 
172.17 	the stakeholder group.
172.18 	The commissioner may exclude other medical assistance services from the basic 
172.19 	health care benefit set. Enrollees in these plans can access any excluded services on the 
172.20 	same basis as other medical assistance recipients who have not enrolled. Unless a person 
172.21 	is otherwise required to enroll in managed care, enrollment in these plans for Medicaid 
172.22 	services must be voluntary. For purposes of this subdivision, automatic enrollment with an 
172.23 	option to opt out is not voluntary enrollment. 
172.24 	(b) Beginning January 1, 2007, the commissioner may contract with qualified 
172.25 	Medicare special needs plans to provide basic health care services under medical 
172.26 	assistance to persons who are dually eligible for both Medicare and Medicaid and those 
172.27 	Social Security beneficiaries eligible for Medicaid but in the waiting period for Medicare. 
172.28 	The commissioner shall consult with the stakeholder group under paragraph (d) in 
172.29 	developing program specifications for these services. The commissioner shall report to 
172.30 	the chairs of the house and senate committees with jurisdiction over health and human 
172.31 	services policy and finance by February 1, 2007, on implementation of these programs and 
172.32 	the need for increased funding for the ombudsman for managed care and other consumer 
172.33 	assistance and protections needed due to enrollment in managed care of persons with 
172.34 	disabilities. Payment for Medicaid services provided under this subdivision for the months 
172.35 	of May and June will be made no earlier than July 1 of the same calendar year.
173.1 	(c) Beginning January 1, 2008, the commissioner may expand contracting under this 
173.2 	subdivision to all persons with disabilities not otherwise required to enroll in managed 
173.3 	care.
173.4 	(d) The commissioner shall establish a state-level stakeholder group to provide 
173.5 	advice on managed care programs for persons with disabilities, including both MnDHO 
173.6 	and contracts with special needs plans that provide basic health care services as described 
173.7 	in paragraphs (a) and (b). The stakeholder group shall provide advice on program 
173.8 	expansions under this subdivision and subdivision 23, including:
173.9 	(1) implementation efforts; 
173.10 	(2) consumer protections; and 
173.11 	(3) program specifications such as quality assurance measures, data collection and 
173.12 	reporting, and evaluation of costs, quality, and results.
173.13 	(e) Each plan under contract to provide medical assistance basic health care services 
173.14 	shall establish a local or regional stakeholder group, including representatives of the 
173.15 	counties covered by the plan, members, consumer advocates, and providers, for advice on 
173.16 	issues that arise in the local or regional area.

173.17 	Sec. 38. Minnesota Statutes 2004, section 256B.76, is amended to read:
173.18 	256B.76 PHYSICIAN AND DENTAL REIMBURSEMENT.
173.19 	(a) Effective for services rendered on or after October 1, 1992, the commissioner 
173.20 	shall make payments for physician services as follows:
173.21 	(1) payment for level one Centers for Medicare and Medicaid Services' common 
173.22 	procedural coding system codes titled "office and other outpatient services," "preventive 
173.23 	medicine new and established patient," "delivery, antepartum, and postpartum care," 
173.24 	"critical care," cesarean delivery and pharmacologic management provided to psychiatric 
173.25 	patients, and level three codes for enhanced services for prenatal high risk, shall be paid 
173.26 	at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 
173.27 	30, 1992. If the rate on any procedure code within these categories is different than the 
173.28 	rate that would have been paid under the methodology in section  256B.74, subdivision 2, 
173.29 	then the larger rate shall be paid; 
173.30 	(2) payments for all other services shall be paid at the lower of (i) submitted charges, 
173.31 	or (ii) 15.4 percent above the rate in effect on June 30, 1992;
173.32 	(3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th 
173.33 	percentile of 1989, less the percent in aggregate necessary to equal the above increases 
173.34 	except that payment rates for home health agency services shall be the rates in effect 
173.35 	on September 30, 1992;
174.1 	(4) effective for services rendered on or after January 1, 2000, payment rates for 
174.2 	physician and professional services shall be increased by three percent over the rates in 
174.3 	effect on December 31, 1999, except for home health agency and family planning agency 
174.4 	services; and
174.5 	(5) the increases in clause (4) shall be implemented January 1, 2000, for managed 
174.6 	care.
174.7 	(b) Effective for services rendered on or after October 1, 1992, the commissioner 
174.8 	shall make payments for dental services as follows:
174.9 	(1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25 
174.10 	percent above the rate in effect on June 30, 1992;
174.11 	(2) dental rates shall be converted from the 50th percentile of 1982 to the 50th 
174.12 	percentile of 1989, less the percent in aggregate necessary to equal the above increases;
174.13 	(3) effective for services rendered on or after January 1, 2000, payment rates for 
174.14 	dental services shall be increased by three percent over the rates in effect on December 
174.15 	31, 1999;
174.16 	(4) the commissioner shall award grants to community clinics or other nonprofit 
174.17 	community organizations, political subdivisions, professional associations, or other 
174.18 	organizations that demonstrate the ability to provide dental services effectively to public 
174.19 	program recipients. Grants may be used to fund the costs related to coordinating access for 
174.20 	recipients, developing and implementing patient care criteria, upgrading or establishing 
174.21 	new facilities, acquiring furnishings or equipment, recruiting new providers, or other 
174.22 	development costs that will improve access to dental care in a region. In awarding grants, 
174.23 	the commissioner shall give priority to applicants that plan to serve areas of the state in 
174.24 	which the number of dental providers is not currently sufficient to meet the needs of 
174.25 	recipients of public programs or uninsured individuals. The commissioner shall consider 
174.26 	the following in awarding the grants:
174.27 	(i) potential to successfully increase access to an underserved population;
174.28 	(ii) the ability to raise matching funds;
174.29 	(iii) the long-term viability of the project to improve access beyond the period 
174.30 	of initial funding;
174.31 	(iv) the efficiency in the use of the funding; and
174.32 	(v) the experience of the proposers in providing services to the target population.
174.33 	The commissioner shall monitor the grants and may terminate a grant if the grantee 
174.34 	does not increase dental access for public program recipients. The commissioner shall 
174.35 	consider grants for the following:
175.1 	(i) implementation of new programs or continued expansion of current access 
175.2 	programs that have demonstrated success in providing dental services in underserved 
175.3 	areas;
175.4 	(ii) a pilot program for utilizing hygienists outside of a traditional dental office to 
175.5 	provide dental hygiene services; and
175.6 	(iii) a program that organizes a network of volunteer dentists, establishes a system to 
175.7 	refer eligible individuals to volunteer dentists, and through that network provides donated 
175.8 	dental care services to public program recipients or uninsured individuals;
175.9 	(5) beginning October 1, 1999, the payment for tooth sealants and fluoride treatments 
175.10 	shall be the lower of (i) submitted charge, or (ii) 80 percent of median 1997 charges;
175.11 	(6) the increases listed in clauses (3) and (5) shall be implemented January 1, 2000, 
175.12 	for managed care; and
175.13 	(7) effective for services provided on or after January 1, 2002, payment for 
175.14 	diagnostic examinations and dental x-rays provided to children under age 21 shall be the 
175.15 	lower of (i) the submitted charge, or (ii) 85 percent of median 1999 charges.
175.16 	(c) Effective for dental services rendered on or after January 1, 2002 July 1, 2006, 
175.17 	the commissioner may, within the limits of available appropriation,shall increase 
175.18 	reimbursements to dentists and dental clinics deemed by the commissioner to be critical 
175.19 	access dental providers. Reimbursement to a critical access dental provider may be 
175.20 	increased by not more than 506.88 percent above the reimbursement rate that would 
175.21 	otherwise be paid to the provider. Payments to health plan companiesprepaid health plans 
175.22 	shall be adjusted to reflect increased reimbursements to critical access dental providers as 
175.23 	approved by the commissioner. In determining which dentists and dental clinics shall be 
175.24 	deemed critical access dental providers, the commissioner shall review:
175.25 	(1) the utilization rate in the service area in which the dentist or dental clinic operates 
175.26 	for dental services to patients covered by medical assistance, general assistance medical 
175.27 	care, or MinnesotaCare as their primary source of coverage;
175.28 	(2) the level of services provided by the dentist or dental clinic to patients covered 
175.29 	by medical assistance, general assistance medical care, or MinnesotaCare as their primary 
175.30 	source of coverage; and
175.31 	(3) whether the level of services provided by the dentist or dental clinic is critical to 
175.32 	maintaining adequate levels of patient access within the service area.
175.33 	(d) The commissioner shall award special hardship grants to nonprofit dental 
175.34 	providers with a high proportion of uninsured patients that equals or exceeds 15 percent 
175.35 	of the total number of patients served by that provider and the provider does not receive 
175.36 	a financial benefit comparable to other critical access dental providers under the critical 
176.1 	access dental provider formula described in paragraph (c). The commissioner shall award 
176.2 	a grant to these providers allocated in proportion to each critical access dental provider's 
176.3 	ratio of uninsured patients to the total number of patients served by all providers who 
176.4 	qualify for a grant under this paragraph.
176.5 	In the absence of a critical access dental provider in a service area, the commissioner may 
176.6 	designate a dentist or dental clinic as a critical access dental provider if the dentist or 
176.7 	dental clinic is willing to provide care to patients covered by medical assistance, general 
176.8 	assistance medical care, or MinnesotaCare at a level which significantly increases access 
176.9 	to dental care in the service area.
176.10 	(d) (e) An entity that operates both a Medicare certified comprehensive outpatient 
176.11 	rehabilitation facility and a facility which was certified prior to January 1, 1993, that is 
176.12 	licensed under Minnesota Rules, parts 9570.2000 to 9570.3600, and for whom at least 33 
176.13 	percent of the clients receiving rehabilitation services in the most recent calendar year are 
176.14 	medical assistance recipients, shall be reimbursed by the commissioner for rehabilitation 
176.15 	services at rates that are 38 percent greater than the maximum reimbursement rate 
176.16 	allowed under paragraph (a), clause (2), when those services are (1) provided within the 
176.17 	comprehensive outpatient rehabilitation facility and (2) provided to residents of nursing 
176.18 	facilities owned by the entity.
176.19 	(e) (f) Effective for services rendered on or after January 1, 2007, the commissioner 
176.20 	shall make payments for physician and professional services based on the Medicare 
176.21 	relative value units (RVUs). This change shall be budget neutral and the cost of 
176.22 	implementing RVUs will be incorporated in the established conversion factor.

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

176.24 	Sec. 39. Minnesota Statutes 2005 Supplement, section 256D.03, subdivision 3, is 
176.25 	amended to read:
176.26 		Subd. 3.General assistance medical care; eligibility. (a) General assistance 
176.27 	medical care may be paid for any person who is not eligible for medical assistance under 
176.28 	chapter 256B, including eligibility for medical assistance based on a spenddown of excess 
176.29 	income according to section 256B.056, subdivision 5, or MinnesotaCare as defined in 
176.30 	paragraph (b), except as provided in paragraph (c), and:
176.31 	(1) who is receiving assistance under section 256D.05, except for families with 
176.32 	children who are eligible under Minnesota family investment program (MFIP), or who is 
176.33 	having a payment made on the person's behalf under sections 256I.01 to 256I.06; or
176.34 	(2) who is a resident of Minnesota; and
177.1 	(i) who has gross countable income not in excess of 75 percent of the federal poverty 
177.2 	guidelines for the family size, using a six-month budget period and whose equity in assets 
177.3 	is not in excess of $1,000 per assistance unit. Exempt assets, the reduction of excess 
177.4 	assets, and the waiver of excess assets must conform to the medical assistance program in 
177.5 	section 256B.056, subdivision 3, with the following exception: the maximum amount of 
177.6 	undistributed funds in a trust that could be distributed to or on behalf of the beneficiary by 
177.7 	the trustee, assuming the full exercise of the trustee's discretion under the terms of the 
177.8 	trust, must be applied toward the asset maximum;
177.9 	(ii) who has gross countable income above 75 percent of the federal poverty 
177.10 	guidelines but not in excess of 175 percent of the federal poverty guidelines for the 
177.11 	family size, using a six-month budget period, whose equity in assets is not in excess 
177.12 	of the limits in section 256B.056, subdivision 3c, and who applies during an inpatient 
177.13 	hospitalization; or
177.14 	(iii) the commissioner shall adjust the income standards under this section each July 
177.15 	1 by the annual update of the federal poverty guidelines following publication by the 
177.16 	United States Department of Health and Human Services.
177.17 	(b) Effective for applications and renewals processed on or after September 1, 2006, 
177.18 	general assistance medical care may not be paid for applicants or recipients who are adults 
177.19 	with dependent children under 21 whose gross family income is equal to or less than 275 
177.20 	percent of the federal poverty guidelines who are not described in paragraph (e).
177.21 	(c) Effective for applications and renewals processed on or after September 1, 2006, 
177.22 	general assistance medical care may be paid for applicants and recipients who meet all 
177.23 	eligibility requirements of paragraph (a), clause (2), item (i), for a temporary period 
177.24 	beginning the date of application. Immediately following approval of general assistance 
177.25 	medical care, enrollees shall be enrolled in MinnesotaCare under section 256L.04, 
177.26 	subdivision 7, with covered services as provided in section 256L.03 for the rest of the 
177.27 	six-month eligibility period, until their six-month renewal.
177.28 	(d) To be eligible for general assistance medical care following enrollment in 
177.29 	MinnesotaCare as required by paragraph (c), an individual must complete a new 
177.30 	application.
177.31 	(e) Applicants and recipients eligible under paragraph (a), clause (1), or; who have 
177.32 	applied for and are awaiting a determination of blindness or disability by the state medical 
177.33 	review team or a determination of eligibility for Supplemental Security Income or Social 
177.34 	Security Disability Insurance by the Social Security Administration, or; who fail to meet 
177.35 	the requirements of section 256L.09, subdivision 2,; who are classified as end-stage renal 
177.36 	disease beneficiaries in the Medicare program; who are enrolled in private health care 
178.1 	coverage as defined in section 256B.02, subdivision 9; who are eligible under paragraph 
178.2 	(j); or who receive treatment funded pursuant to section 254B.02  are exempt from the 
178.3 	MinnesotaCare enrollment requirements of this subdivision.
178.4 	(f) For applications received on or after October 1, 2003, eligibility may begin no 
178.5 	earlier than the date of application. For individuals eligible under paragraph (a), clause 
178.6 	(2), item (i), a redetermination of eligibility must occur every 12 months. Individuals are 
178.7 	eligible under paragraph (a), clause (2), item (ii), only during inpatient hospitalization but 
178.8 	may reapply if there is a subsequent period of inpatient hospitalization.
178.9 	(g) Beginning September 1, 2006, Minnesota health care program applications and 
178.10 	renewals completed by recipients and applicants who are persons described in paragraph 
178.11 	(c) and submitted to the county agency shall be determined for MinnesotaCare eligibility 
178.12 	by the county agency. If all other eligibility requirements of this subdivision are met, 
178.13 	eligibility for general assistance medical care shall be available in any month during which 
178.14 	MinnesotaCare enrollment is pending. Upon notification of eligibility for MinnesotaCare, 
178.15 	notice of termination for eligibility for general assistance medical care shall be sent to 
178.16 	an applicant or recipient. If all other eligibility requirements of this subdivision are 
178.17 	met, eligibility for general assistance medical care shall be available until enrollment in 
178.18 	MinnesotaCare subject to the provisions of paragraphs (c), (e), and (f).
178.19 	(h) The date of an initial Minnesota health care program application necessary to 
178.20 	begin a determination of eligibility shall be the date the applicant has provided a name, 
178.21 	address, and Social Security number, signed and dated, to the county agency or the 
178.22 	Department of Human Services. If the applicant is unable to provide a name, address, 
178.23 	Social Security number, and signature when health care is delivered due to a medical 
178.24 	condition or disability, a health care provider may act on an applicant's behalf to establish 
178.25 	the date of an initial Minnesota health care program application by providing the county 
178.26 	agency or Department of Human Services with provider identification and a temporary 
178.27 	unique identifier for the applicant. The applicant must complete the remainder of the 
178.28 	application and provide necessary verification before eligibility can be determined. The 
178.29 	county agency must assist the applicant in obtaining verification if necessary.
178.30 	(i) County agencies are authorized to use all automated databases containing 
178.31 	information regarding recipients' or applicants' income in order to determine eligibility 
178.32 	for general assistance medical care or MinnesotaCare. Such use shall be considered 
178.33 	sufficient in order to determine eligibility and premium payments by the county agency.
178.34 	(j) General assistance medical care is not available for a person in a correctional 
178.35 	facility unless the person is detained by law for less than one year in a county correctional 
178.36 	or detention facility as a person accused or convicted of a crime, or admitted as an 
179.1 	inpatient to a hospital on a criminal hold order, and the person is a recipient of general 
179.2 	assistance medical care at the time the person is detained by law or admitted on a criminal 
179.3 	hold order and as long as the person continues to meet other eligibility requirements 
179.4 	of this subdivision.
179.5 	(k) General assistance medical care is not available for applicants or recipients who 
179.6 	do not cooperate with the county agency to meet the requirements of medical assistance.
179.7 	(l) In determining the amount of assets of an individual eligible under paragraph 
179.8 	(a), clause (2), item (i), there shall be included any asset or interest in an asset, including 
179.9 	an asset excluded under paragraph (a), that was given away, sold, or disposed of for 
179.10 	less than fair market value within the 60 months preceding application for general 
179.11 	assistance medical care or during the period of eligibility. Any transfer described in this 
179.12 	paragraph shall be presumed to have been for the purpose of establishing eligibility for 
179.13 	general assistance medical care, unless the individual furnishes convincing evidence to 
179.14 	establish that the transaction was exclusively for another purpose. For purposes of this 
179.15 	paragraph, the value of the asset or interest shall be the fair market value at the time it 
179.16 	was given away, sold, or disposed of, less the amount of compensation received. For any 
179.17 	uncompensated transfer, the number of months of ineligibility, including partial months, 
179.18 	shall be calculated by dividing the uncompensated transfer amount by the average monthly 
179.19 	per person payment made by the medical assistance program to skilled nursing facilities 
179.20 	for the previous calendar year. The individual shall remain ineligible until this fixed period 
179.21 	has expired. The period of ineligibility may exceed 30 months, and a reapplication for 
179.22 	benefits after 30 months from the date of the transfer shall not result in eligibility unless 
179.23 	and until the period of ineligibility has expired. The period of ineligibility begins in the 
179.24 	month the transfer was reported to the county agency, or if the transfer was not reported, 
179.25 	the month in which the county agency discovered the transfer, whichever comes first. For 
179.26 	applicants, the period of ineligibility begins on the date of the first approved application.
179.27 	(m) When determining eligibility for any state benefits under this subdivision, 
179.28 	the income and resources of all noncitizens shall be deemed to include their sponsor's 
179.29 	income and resources as defined in the Personal Responsibility and Work Opportunity 
179.30 	Reconciliation Act of 1996, title IV, Public Law 104-193, sections 421 and 422, and 
179.31 	subsequently set out in federal rules.
179.32 	(n) Undocumented noncitizens and nonimmigrants are ineligible for general 
179.33 	assistance medical care. For purposes of this subdivision, a nonimmigrant is an individual 
179.34 	in one or more of the classes listed in United States Code, title 8, section 1101(a)(15), and 
179.35 	an undocumented noncitizen is an individual who resides in the United States without the 
179.36 	approval or acquiescence of the Immigration and Naturalization Service.
180.1 	(o) Notwithstanding any other provision of law, a noncitizen who is ineligible for 
180.2 	medical assistance due to the deeming of a sponsor's income and resources, is ineligible 
180.3 	for general assistance medical care.
180.4 	(p) Effective July 1, 2003, general assistance medical care emergency services end.

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

180.6 	Sec. 40. Minnesota Statutes 2005 Supplement, section 256L.01, subdivision 4, is 
180.7 	amended to read:
180.8 		Subd. 4.Gross individual or gross family income. (a) "Gross individual or gross 
180.9 	family income" for nonfarm self-employed means income calculated for the six-month 
180.10 	period of eligibility using the net profit or loss reported on the applicant's federal income 
180.11 	tax form for the previous year and using the medical assistance families with children 
180.12 	methodology for determining allowable and nonallowable self-employment expenses and 
180.13 	countable income.
180.14 	(b) "Gross individual or gross family income" for farm self-employed means income 
180.15 	calculated for the six-month period of eligibility using as the baseline the adjusted gross 
180.16 	income reported on the applicant's federal income tax form for the previous year and 
180.17 	adding back in reported depreciation amounts that apply to the business in which the 
180.18 	family is currently engaged.
180.19 	(c) "Gross individual or gross family income" means the total income for all family 
180.20 	members, calculated for the six-month period of eligibility.

180.21 	EFFECTIVE DATE. This section is effective July 1, 2007, or upon federal 
180.22 	approval, whichever is later.

180.23 	Sec. 41. Minnesota Statutes 2005 Supplement, section 256L.03, subdivision 1, is 
180.24 	amended to read:
180.25 		Subdivision 1.Covered health services. For individuals under section 256L.04, 
180.26 	subdivision 7, with income no greater than 75 percent of the federal poverty guidelines 
180.27 	or for families with children under section 256L.04, subdivision 1, all subdivisions of 
180.28 	this section apply. "Covered health services" means the health services reimbursed 
180.29 	under chapter 256B, with the exception of inpatient hospital services, special education 
180.30 	services, private duty nursing services, adult dental care services other than services 
180.31 	covered under section 256B.0625, subdivision 9, orthodontic services, nonemergency 
180.32 	medical transportation services, personal care assistant and case management services, 
180.33 	nursing home or intermediate care facilities services, inpatient mental health services, 
181.1 	and chemical dependency services. Outpatient mental health services covered under the 
181.2 	MinnesotaCare program are limited to diagnostic assessments, psychological testing, 
181.3 	explanation of findings, mental health telemedicine, psychiatric consultation, medication 
181.4 	management by a physician, day treatment, partial hospitalization, and individual, family, 
181.5 	and group psychotherapy.
181.6 	No public funds shall be used for coverage of abortion under MinnesotaCare 
181.7 	except where the life of the female would be endangered or substantial and irreversible 
181.8 	impairment of a major bodily function would result if the fetus were carried to term; or 
181.9 	where the pregnancy is the result of rape or incest.
181.10 	Covered health services shall be expanded as provided in this section.

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

181.12 	Sec. 42. Minnesota Statutes 2004, section 256L.03, subdivision 3, is amended to read:
181.13 		Subd. 3.Inpatient hospital services. (a) Covered health services shall include 
181.14 	inpatient hospital services, including inpatient hospital mental health services and inpatient 
181.15 	hospital and residential chemical dependency treatment, subject to those limitations 
181.16 	necessary to coordinate the provision of these services with eligibility under the medical 
181.17 	assistance spenddown. Prior to July 1, 1997, the inpatient hospital benefit for adult 
181.18 	enrollees is subject to an annual benefit limit of $10,000. The inpatient hospital benefit 
181.19 	for adult enrollees who qualify under section  256L.04, subdivision 7, or who qualify 
181.20 	under section  256L.04, subdivisions 1 and 2, with family gross income that exceeds 
181.21 	175 percent of the federal poverty guidelines and who are not pregnant, is subject to an 
181.22 	annual limit of $10,000 $20,000. 
181.23 	(b) Admissions for inpatient hospital services paid for under section  256L.11, 
181.24 	subdivision 3, must be certified as medically necessary in accordance with Minnesota 
181.25 	Rules, parts 9505.0500 to 9505.0540, except as provided in clauses (1) and (2): 
181.26 	(1) all admissions must be certified, except those authorized under rules established 
181.27 	under section  254A.03, subdivision 3, or approved under Medicare; and 
181.28 	(2) payment under section  256L.11, subdivision 3, shall be reduced by five percent 
181.29 	for admissions for which certification is requested more than 30 days after the day of 
181.30 	admission. The hospital may not seek payment from the enrollee for the amount of the 
181.31 	payment reduction under this clause. 

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

182.1 	Sec. 43. Minnesota Statutes 2005 Supplement, section 256L.03, subdivision 5, is 
182.2 	amended to read:
182.3 		Subd. 5.Co-payments and coinsurance. (a) Except as provided in paragraphs (b) 
182.4 	and (c), the MinnesotaCare benefit plan shall include the following co-payments and 
182.5 	coinsurance requirements for all enrollees:
182.6 	(1) ten percent of the paid charges for inpatient hospital services for adult enrollees, 
182.7 	subject to an annual inpatient out-of-pocket maximum of $1,000 per individual and 
182.8 	$3,000 per family;
182.9 	(2) $3 per prescription for adult enrollees;
182.10 	(3) $25 for eyeglasses for adult enrollees;
182.11 	(4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an 
182.12 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
182.13 	established illness, and which is delivered in an ambulatory setting by a physician or 
182.14 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
182.15 	audiologist, optician, or optometrist; and
182.16 	(5) $6 for nonemergency visits to a hospital-based emergency room; and.
182.17 	(6) 50 percent of the fee-for-service rate for adult dental care services other than 
182.18 	preventive care services for persons eligible under section 256L.04, subdivisions 1 to 7, 
182.19 	with income equal to or less than 175 percent of the federal poverty guidelines.
182.20 	(b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of 
182.21 	children under the age of 21 in households with family income equal to or less than 175 
182.22 	percent of the federal poverty guidelines. Paragraph (a), clause (1), does not apply to 
182.23 	parents and relative caretakers of children under the age of 21 in households with family 
182.24 	income greater than 175 percent of the federal poverty guidelines for inpatient hospital 
182.25 	admissions occurring on or after January 1, 2001.
182.26 	(c) Paragraph (a), clauses (1) to (4), do not apply to pregnant women and children 
182.27 	under the age of 21.
182.28 	(d) Adult enrollees with family gross income that exceeds 175 percent of the 
182.29 	federal poverty guidelines and who are not pregnant shall be financially responsible for 
182.30 	the coinsurance amount, if applicable, and amounts which exceed the $10,000 $20,000
182.31 	inpatient hospital benefit limit.
182.32 	(e) When a MinnesotaCare enrollee becomes a member of a prepaid health 
182.33 	plan, or changes from one prepaid health plan to another during a calendar year, any 
182.34 	charges submitted towards the $10,000 $20,000 annual inpatient benefit limit, and any 
182.35 	out-of-pocket expenses incurred by the enrollee for inpatient services, that were submitted 
182.36 	or incurred prior to enrollment, or prior to the change in health plans, shall be disregarded.

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

183.2 	Sec. 44. Minnesota Statutes 2005 Supplement, section 256L.04, subdivision 1a, 
183.3 	is amended to read:
183.4 		Subd. 1a.Social Security number required. (a) Individuals and families applying 
183.5 	for MinnesotaCare coverage must provide a Social Security number. This requirement 
183.6 	does not apply to an undocumented noncitizen or nonimmigrant who is eligible for 
183.7 	MinnesotaCare.
183.8 	(b) The commissioner shall not deny eligibility to an otherwise eligible applicant 
183.9 	who has applied for a Social Security number and is awaiting issuance of that Social 
183.10 	Security number.
183.11 	(c) Newborns enrolled under section 256L.05, subdivision 3, are exempt from the 
183.12 	requirements of this subdivision.
183.13 	(d) Individuals who refuse to provide a Social Security number because of 
183.14 	well-established religious objections are exempt from the requirements of this subdivision. 
183.15 	The term "well-established religious objections" has the meaning given in Code of Federal 
183.16 	Regulations, title 42, section 435.910.

183.17 	Sec. 45. Minnesota Statutes 2004, section 256L.04, subdivision 7, is amended to read:
183.18 		Subd. 7.Single adults and households with no children. The definition of eligible 
183.19 	persons includes all individuals and households with no children who have gross family 
183.20 	incomes that are equal to or less than 175200 percent of the federal poverty guidelines.

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

183.22 	Sec. 46. Minnesota Statutes 2004, section 256L.04, subdivision 10, is amended to read:
183.23 		Subd. 10.Citizenship requirements. (a) Eligibility for MinnesotaCare is limited 
183.24 	to citizens or nationals of the United States, qualified noncitizens, and other persons 
183.25 	residing lawfully in the United States as described in section  256B.06, subdivision 4, 
183.26 	paragraphs (a) to (e) and (j). Undocumented noncitizens and nonimmigrants are ineligible 
183.27 	for MinnesotaCare. For purposes of this subdivision, a nonimmigrant is an individual in 
183.28 	one or more of the classes listed in United States Code, title 8, section 1101(a)(15), and an 
183.29 	undocumented noncitizen is an individual who resides in the United States without the 
183.30 	approval or acquiescence of the Immigration and Naturalization Service This paragraph 
183.31 	does not apply to children.
183.32 	(b) Families with children who are citizens or nationals of the United States must 
183.33 	cooperate in obtaining satisfactory documentary evidence of citizenship or nationality as 
184.1 	required by the federal Deficit Reduction Act of 2005, Public Law 109-171. State and 
184.2 	county workers must assist applicants in obtaining satisfactory documentary evidence of 
184.3 	citizenship or nationality.
184.4 	(c) For purposes of this subdivision, a nonimmigrant is an individual in one or 
184.5 	more of the classes listed in United States Code, title 8, section 1101(a)(15), and an 
184.6 	undocumented noncitizen is an individual who resides in the United States without the 
184.7 	approval or acquiescence of the Immigration and Naturalization Service.

184.8 	Sec. 47. Minnesota Statutes 2004, section 256L.04, is amended by adding a subdivision 
184.9 	to read:
184.10 		Subd. 14.MinnesotaCare outreach.  (a) The commissioner shall award grants to 
184.11 	public or private organizations to provide information on the importance of maintaining 
184.12 	insurance coverage and on how to obtain coverage through the MinnesotaCare program in 
184.13 	areas of the state with high uninsured populations. 
184.14 	(b) In awarding the grants, the commissioner shall consider the following: 
184.15 	(1) geographic areas and populations with high uninsured rates; 
184.16 	(2) the ability to raise matching funds; and 
184.17 	(3) the ability to contact or serve eligible populations. 
184.18 	The commissioner shall monitor the grants and may terminate a grant if the outreach 
184.19 	effort does not increase enrollment in medical assistance, general assistance medical care, 
184.20 	or the MinnesotaCare program.

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

184.22 	Sec. 48. Minnesota Statutes 2005 Supplement, section 256L.07, subdivision 1, is 
184.23 	amended to read:
184.24 		Subdivision 1.General requirements. (a) Children enrolled in the original 
184.25 	children's health plan as of September 30, 1992, children who enrolled in the 
184.26 	MinnesotaCare program after September 30, 1992, pursuant to Laws 1992, chapter 549, 
184.27 	article 4, section 17, and children who have family gross incomes that are equal to or 
184.28 	less than 150 percent of the federal poverty guidelines are eligible without meeting 
184.29 	the requirements of subdivision 2 and the four-month requirement in subdivision 3, as 
184.30 	long as they maintain continuous coverage in the MinnesotaCare program or medical 
184.31 	assistance. Children who apply for MinnesotaCare on or after the implementation date 
184.32 	of the employer-subsidized health coverage program as described in Laws 1998, chapter 
184.33 	407, article 5, section 45, who have family gross incomes that are equal to or less than 150 
185.1 	percent of the federal poverty guidelines, must meet the requirements of subdivision 2 to 
185.2 	be eligible for MinnesotaCare.
185.3 	(b) Families enrolled in MinnesotaCare under section 256L.04, subdivision 1, 
185.4 	whose income increases above 275 percent of the federal poverty guidelines, are no 
185.5 	longer eligible for the program and shall be disenrolled by the commissioner. Individuals 
185.6 	enrolled in MinnesotaCare under section 256L.04, subdivision 7, whose income increases 
185.7 	above 175 200 percent of the federal poverty guidelines are no longer eligible for the 
185.8 	program and shall be disenrolled by the commissioner. For persons disenrolled under 
185.9 	this subdivision, MinnesotaCare coverage terminates the last day of the calendar month 
185.10 	following the month in which the commissioner determines that the income of a family or 
185.11 	individual exceeds program income limits.
185.12 	(c)(b) Notwithstanding paragraph (b) (a), children may remain enrolled in 
185.13 	MinnesotaCare if ten percent of their gross individual or gross family income as defined 
185.14 	in section 256L.01, subdivision 4, is less than the premium for a six-month policy with 
185.15 	a $500 deductible available through the Minnesota Comprehensive Health Association. 
185.16 	Children who are no longer eligible for MinnesotaCare under this clause shall be given a 
185.17 	12-month notice period from the date that ineligibility is determined before disenrollment. 
185.18 	The premium for children remaining eligible under this clause shall be the maximum 
185.19 	premium determined under section 256L.15, subdivision 2, paragraph (b).
185.20 	(d)(c) Notwithstanding paragraphs (b)(a) and (c) (b), parents are not eligible for 
185.21 	MinnesotaCare if gross household income exceeds $25,000 for the six-month period 
185.22 	of eligibility.

185.23 	EFFECTIVE DATE. Amendments to paragraph (a) are effective January 1, 2009, 
185.24 	and amendments to paragraph (b) are effective July 1, 2007.

185.25 	Sec. 49. Minnesota Statutes 2004, section 256L.07, subdivision 2, is amended to read:
185.26 		Subd. 2.Must not have access to employer-subsidized coverage. (a) To be 
185.27 	eligible, a family or individual an adult must not have access to subsidized health coverage 
185.28 	through an employer and must not have had access to employer-subsidized coverage 
185.29 	through a current employer for 18 months prior to application or reapplication. A family 
185.30 	or individual An adult whose employer-subsidized coverage is lost due to an employer 
185.31 	terminating health care coverage as an employee benefit during the previous 18 months 
185.32 	is not eligible.
185.33 	(b) This subdivision does not apply to a family or individual an adult who was 
185.34 	enrolled in MinnesotaCare within six months or less of reapplication and who no longer 
186.1 	has employer-subsidized coverage due to the employer terminating health care coverage 
186.2 	as an employee benefit.
186.3 	(c) For purposes of this requirement, subsidized health coverage means health 
186.4 	coverage for which the employer pays at least 50 percent of the cost of coverage for 
186.5 	the employee or dependent, or a higher percentage as specified by the commissioner. 
186.6 	Children are eligible for employer-subsidized coverage through either parent, including 
186.7 	the noncustodial parent. The commissioner must treat employer contributions to Internal 
186.8 	Revenue Code Section 125 plans and any other employer benefits intended to pay 
186.9 	health care costs as qualified employer subsidies toward the cost of health coverage for 
186.10 	employees for purposes of this subdivision.
186.11 	(d) This subdivision does not apply to children.

186.12 	EFFECTIVE DATE. This section is effective January 1, 2009.

186.13 	Sec. 50. Minnesota Statutes 2005 Supplement, section 256L.07, subdivision 3, is 
186.14 	amended to read:
186.15 		Subd. 3.Other health coverage. (a) Families and individualsAdults enrolled in 
186.16 	the MinnesotaCare program must have no health coverage while enrolled or for at least 
186.17 	four months prior to application and renewal. Children enrolled in the original children's 
186.18 	health plan and children in families with income equal to or less than 150 percent of the 
186.19 	federal poverty guidelines, who have other health insurance, are eligible if the coverage:
186.20 	(1) lacks two or more of the following:
186.21 	(i) basic hospital insurance;
186.22 	(ii) medical-surgical insurance;
186.23 	(iii) prescription drug coverage;
186.24 	(iv) dental coverage; or
186.25 	(v) vision coverage;
186.26 	(2) requires a deductible of $100 or more per person per year; or
186.27 	(3) lacks coverage because the child has exceeded the maximum coverage for a 
186.28 	particular diagnosis or the policy excludes a particular diagnosis.
186.29 	The commissioner may change this eligibility criterion for sliding scale premiums in 
186.30 	order to remain within the limits of available appropriations. The requirement of no health 
186.31 	coverage This paragraph does not apply to newborns children.
186.32 	(b) Medical assistance, general assistance medical care, and the Civilian Health and 
186.33 	Medical Program of the Uniformed Service, CHAMPUS, or other coverage provided under 
186.34 	United States Code, title 10, subtitle A, part II, chapter 55, are not considered insurance or 
186.35 	health coverage for purposes of the four-month requirement described in this subdivision.
187.1 	(c) For purposes of this subdivision, an applicant or enrollee who is entitled to 
187.2 	Medicare Part A or enrolled in Medicare Part B coverage under title XVIII of the Social 
187.3 	Security Act, United States Code, title 42, sections 1395c to 1395w-152, is considered to 
187.4 	have health coverage. An applicant or enrollee who is entitled to premium-free Medicare 
187.5 	Part A may not refuse to apply for or enroll in Medicare coverage to establish eligibility 
187.6 	for MinnesotaCare.
187.7 	(d) Applicants who were recipients of medical assistance or general assistance 
187.8 	medical care within one month of application must meet the provisions of this subdivision 
187.9 	and subdivision 2.
187.10 	(e) Cost-effective health insurance that was paid for by medical assistance is not 
187.11 	considered health coverage for purposes of the four-month requirement under this 
187.12 	section, except if the insurance continued after medical assistance no longer considered it 
187.13 	cost-effective or after medical assistance closed.

187.14 	EFFECTIVE DATE. This section is effective January 1, 2009.

187.15 	Sec. 51. Minnesota Statutes 2004, section 256L.11, subdivision 1, is amended to read:
187.16 		Subdivision 1.Medical assistance rate to be used. Payment to providers under 
187.17 	sections  256L.01 to  256L.11 shall be at the same rates and conditions established for 
187.18 	medical assistance, except as provided in subdivisions 2 to 6 8. 

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

187.20 	Sec. 52. Minnesota Statutes 2004, section 256L.11, is amended by adding a subdivision 
187.21 	to read:
187.22 		Subd. 7.Critical access dental providers. Effective for dental services provided 
187.23 	to MinnesotaCare enrollees on or after January 1, 2007, the commissioner shall increase 
187.24 	payment rates to dentists and dental clinics deemed by the commissioner to be critical 
187.25 	access providers under section 256B.76, paragraph (c), by 50 percent above the payment 
187.26 	rate that would otherwise be paid to the provider. The commissioner shall adjust the 
187.27 	rates paid on or after January 1, 2007, to prepaid health plans under contract with the 
187.28 	commissioner to reflect this rate increase. The prepaid health plan must pass this rate 
187.29 	increase to providers who have been identified by the commissioner as critical access 
187.30 	dental providers under section 256B.76, paragraph (c).

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

188.1 	Sec. 53. Minnesota Statutes 2004, section 256L.11, is amended by adding a subdivision 
188.2 	to read:
188.3 		Subd. 8.Provider rate increase. (a) Effective for services provided on or after July 
188.4 	1, 2006, payments to providers shall be increased by 1.85 percent over the rates in effect 
188.5 	on June 30, 2006. The commissioner shall adjust the rates paid on or after January 1, 
188.6 	2007, to prepaid health plans under contract with the commissioner to reflect this payment 
188.7 	increase. The prepaid health plan must pass this payment increase to providers.
188.8 	(b) On September 1 of each year, beginning September 1, 2008, the commissioner of 
188.9 	finance shall determine the projected balance of the health care access fund as of June 
188.10 	30 of the following year based on the most recent February forecast adjusted for any 
188.11 	legislative session changes. If the commissioner of finance determines that the projected 
188.12 	balance in the health care access fund as of that June 30 will exceed five percent of the 
188.13 	projected expenditures from the fund for the fiscal year ending the following June 30, the 
188.14 	rate increase described in paragraph (a) shall be paid at a percentage adjusted so that the 
188.15 	projected balance in the fund is reduced to an amount equal to five percent of the projected 
188.16 	expenditures from the fund. If the commissioner of finance determines that the projected 
188.17 	balance in the health care access fund as of June 30 will not exceed five percent of the 
188.18 	projected expenditures from the fund for the fiscal year ending the following June 30, the 
188.19 	rate increase described in paragraph (a) shall not be paid for the following fiscal year. 

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

188.21 	Sec. 54. Minnesota Statutes 2004, section 256L.15, subdivision 1, is amended to read:
188.22 		Subdivision 1.Premium determination. (a) Families with children and individuals 
188.23 	shall pay a premium determined according to subdivision 2.
188.24 	(b) Pregnant women and children under age two are exempt from the provisions 
188.25 	of section  256L.06, subdivision 3, paragraph (b), clause (3), requiring disenrollment 
188.26 	for failure to pay premiums. For pregnant women, this exemption continues until the 
188.27 	first day of the month following the 60th day postpartum. Women who remain enrolled 
188.28 	during pregnancy or the postpartum period, despite nonpayment of premiums, shall be 
188.29 	disenrolled on the first of the month following the 60th day postpartum for the penalty 
188.30 	period that otherwise applies under section  256L.06, unless they begin paying premiums. 
188.31 	(c) Members of the military and their families who meet the eligibility criteria for 
188.32 	MinnesotaCare upon eligibility approval made within 24 months following the end of 
188.33 	the member's tour of active duty shall have their premiums paid by the commissioner. 
188.34 	The effective date of coverage for an individual or family who meets the criteria of this 
188.35 	paragraph shall be the first day of the month following the month in which eligibility is 
189.1 	approved. This exemption shall apply for 12 months if the individual or family remains 
189.2 	eligible upon six-month renewal. 

189.3 	EFFECTIVE DATE. This section is effective July 1, 2007, or upon federal 
189.4 	approval, whichever is later.

189.5 	Sec. 55. Minnesota Statutes 2005 Supplement, section 256L.15, subdivision 2, is 
189.6 	amended to read:
189.7 		Subd. 2.Sliding fee scale to determine percentage of monthly gross individual 
189.8 	or family income. (a) The commissioner shall establish a sliding fee scale to determine 
189.9 	the percentage of monthly gross individual or family income that households at different 
189.10 	income levels must pay to obtain coverage through the MinnesotaCare program. The 
189.11 	sliding fee scale must be based on the enrollee's monthly gross individual or family 
189.12 	income. The sliding fee scale must contain separate tables based on enrollment of one, 
189.13 	two, or three or more persons. The sliding fee scale begins with a premium of 1.5 percent 
189.14 	of monthly gross individual or family income for individuals or families with incomes 
189.15 	below the limits for the medical assistance program for families and children in effect on 
189.16 	January 1, 1999, and proceeds through the following evenly spaced steps: 1.8, 2.3, 3.1, 
189.17 	3.8, 4.8, 5.9, 7.4, and 8.8 percent. These percentages are matched to evenly spaced income 
189.18 	steps ranging from the medical assistance income limit for families and children in effect 
189.19 	on January 1, 1999, to 275 percent of the federal poverty guidelines for the applicable 
189.20 	family size, up to a family size of five. The sliding fee scale for a family of five must be 
189.21 	used for families of more than five. Effective October 1, 2003, the commissioner shall 
189.22 	increase each percentage by 0.5 percentage points for enrollees with income greater than 
189.23 	100 percent but not exceeding 200 percent of the federal poverty guidelines and shall 
189.24 	increase each percentage by 1.0 percentage points for families and children with incomes 
189.25 	greater than 200 percent of the federal poverty guidelines. The sliding fee scale and 
189.26 	percentages are not subject to the provisions of chapter 14. If a family or individual 
189.27 	reports increased income after enrollment, premiums shall be adjusted at the time the 
189.28 	change in income is reported.
189.29 	(b) Children in families whose gross income is above 275 percent of the federal 
189.30 	poverty guidelines shall pay the maximum premium. The maximum premium is defined 
189.31 	as a base charge for one, two, or three or more enrollees so that if all MinnesotaCare 
189.32 	cases paid the maximum premium, the total revenue would equal the total cost of 
189.33 	MinnesotaCare medical coverage and administration. In this calculation, administrative 
189.34 	costs shall be assumed to equal ten percent of the total. The costs of medical coverage 
189.35 	for pregnant women and children under age two and the enrollees in these groups shall 
190.1 	be excluded from the total. The maximum premium for two enrollees shall be twice the 
190.2 	maximum premium for one, and the maximum premium for three or more enrollees shall 
190.3 	be three times the maximum premium for one.
190.4 	(c) After calculating the percentage of premium each enrollee shall pay under 
190.5 	paragraph (a), eight percent shall be added to the premium.

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

190.7 	Sec. 56. [256L.20] MINNESOTACARE OPTION FOR SMALL EMPLOYERS.
190.8 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms used 
190.9 	have the meanings given them. 
190.10 	(b) "Dependent" means an unmarried child under the age of 21. 
190.11 	(c) "Eligible employee" means an employee who works at least 20 hours per week 
190.12 	for an eligible employer. Eligible employee does not include an employee who works 
190.13 	on a temporary or substitute basis or who does not work more than 26 weeks annually. 
190.14 	Coverage of an eligible employee includes the employee's spouse. 
190.15 	(d) "Eligible employer" means a business that employs at least two, but not more 
190.16 	than 50, eligible employees, the majority of whom are employed in the state, and includes 
190.17 	a municipality that has 50 or fewer employees. 
190.18 	(e) "Maximum premium" has the meaning given under section 256L.15, subdivision 
190.19 	2, paragraph (b), clause (3). 
190.20 	(f) "Participating employer" means an eligible employer who meets the requirements 
190.21 	in subdivision 3 and applies to the commissioner to enroll its eligible employees and their 
190.22 	dependents in the MinnesotaCare program.
190.23 	(g) "Program" means the MinnesotaCare program. 
190.24 		Subd. 2.Option. Eligible employees and their dependents may enroll in 
190.25 	MinnesotaCare if the eligible employer meets the requirements of subdivision 3. The 
190.26 	effective date of coverage is as defined in section 256L.05, subdivision 3. 
190.27 		Subd. 3.Employer requirements.  The commissioner shall establish procedures for 
190.28 	an eligible employer to apply for coverage through the program. In order to participate, an 
190.29 	eligible employer must meet the following requirements:
190.30 	(1) agree to contribute toward the cost of the premium for the employee, the 
190.31 	employee's spouse, and the employee's dependents according to subdivision 4; 
190.32 	(2) certify that at least 75 percent of its eligible employees who do not have other 
190.33 	creditable health coverage are enrolled in the program; 
190.34 	(3) offer coverage to all eligible employees, spouses, and dependents of eligible 
190.35 	employees; and 
191.1 	(4) have not provided employer-subsidized health coverage as an employee benefit 
191.2 	during the previous 12 months, as defined in section 256L.07, subdivision 2, paragraph (c). 
191.3 		Subd. 4.Premiums. (a) The premium for coverage provided under this section is 
191.4 	equal to the maximum premium regardless of the income of the eligible employee, as 
191.5 	defined in section 256L.15, subdivision 2, paragraph (b).
191.6 	(b) For eligible employees without dependents with income equal to or less than 175 
191.7 	percent of the federal poverty guidelines and for eligible employees with dependents with 
191.8 	income equal to or less than 275 percent of the federal poverty guidelines, the participating 
191.9 	employer shall pay 50 percent of the premium established under paragraph (a) for the 
191.10 	eligible employee, the employee's spouse, and any dependents, if applicable. 
191.11 	(c) For eligible employees without dependents with income over 175 percent of the 
191.12 	federal poverty guidelines and for eligible employees with dependents with income over 
191.13 	275 percent of the federal poverty guidelines, the participating employer shall pay the 
191.14 	full cost of the premium established under paragraph (a) for the eligible employee, the 
191.15 	employee's spouse, and any dependents, if applicable. The participating employer may 
191.16 	require the employee to pay a portion of the cost of the premium so long as the employer 
191.17 	pays 50 percent. If the employer requires the employee to pay a portion of the premium, 
191.18 	the employee shall pay the portion of the cost to the employer. 
191.19 	(d) The commissioner shall collect premium payments from participating employers 
191.20 	for eligible employees, spouses, and dependents who are covered by the program as 
191.21 	provided under this section. All premiums collected shall be deposited in the health care 
191.22 	access fund. 
191.23 		Subd. 5.Coverage. The coverage offered to those enrolled in the program under 
191.24 	this section must include all health services described under section 256L.03 and all 
191.25 	co-payments and coinsurance requirements under section 256L.03, subdivision 5, apply. 
191.26 		Subd. 6.Enrollment. Upon payment of the premium, according to this section 
191.27 	and section 256L.06, eligible employees, spouses, and dependents shall be enrolled in 
191.28 	MinnesotaCare. For purposes of enrollment under this section, income eligibility limits 
191.29 	established under sections 256L.04 and 256L.07, subdivision 1, and asset limits established 
191.30 	under section 256L.17 do not apply. The barriers established under section 256L.07, 
191.31 	subdivision 2 or 3, do not apply to enrollees eligible under this section. The commissioner 
191.32 	may require eligible employees to provide income verification to determine premiums. 

191.33 	EFFECTIVE DATE. This section is effective July 1, 2008.

191.34 	Sec. 57. Minnesota Statutes 2004, section 462A.05, is amended by adding a 
191.35 	subdivision to read:
192.1 		Subd. 42.Reverse mortgage incentive program. (a) The agency shall, within the 
192.2 	limits of appropriations made available for this purpose, establish, in cooperation with 
192.3 	the commissioner of human services, a program to encourage eligible persons to obtain 
192.4 	reverse mortgages to pay for eligible costs of maintaining the person in the home as an 
192.5 	alternative to a nursing facility placement.
192.6 	(b) The incentive program shall be made available to a person who has been 
192.7 	determined by the commissioner of human services or the commissioner's designated 
192.8 	agent to meet all of the following criteria:
192.9 	(1) is age 62 or older;
192.10 	(2) would be eligible for medical assistance within 365 days of admission to a 
192.11 	nursing home; 
192.12 	(3) is not a medical assistance recipient, is not eligible for medical assistance without 
192.13 	a spenddown or waiver obligation, is not ineligible for the medical assistance program due 
192.14 	to an asset transfer penalty, and does not have income greater than the maintenance needs 
192.15 	allowance under section 256B.0915, subdivision 1d, but equal to or less than 120 percent 
192.16 	of the federal poverty guidelines effective July 1 in the year for which program eligibility 
192.17 	is established, who would be eligible for the elderly waiver with a waiver obligation;
192.18 	(4) needs services that are not funded through other state or federal funding for 
192.19 	which the person qualifies;
192.20 	(5) obtains a reverse mortgage loan under section 47.58 on a home with an estimated 
192.21 	market value not to exceed $150,000. This limit shall be adjusted annually on April 1 
192.22 	by the percentage change for the previous calendar year in the housing component of the 
192.23 	United States Consumer Price Index - All Urban Consumers; and 
192.24 	(6) agrees to make expenditures of reverse mortgage payments in accordance with a 
192.25 	spending plan established under section 256B.0911, subdivision 3a, in which payments, 
192.26 	services, and supports meet the following standards:
192.27 	(i) payments received under the loan for a period of at least 24 months or in an 
192.28 	amount of at least $15,000 are used for services and supports, including basic shelter 
192.29 	needs, home maintenance, and modifications or adaptations, necessary to allow the person 
192.30 	to remain in the home as an alternative to a nursing facility placement; 
192.31 	(ii) reimbursements for services, supplies, and equipment shall not exceed the 
192.32 	market rate; and
192.33 	(iii) if the person's spouse qualifies under section 256B.0913, subdivisions 1 to 14, 
192.34 	the reverse mortgage payments may be used to pay client fees under that section.
192.35 	(c) The incentives available under this program shall include:
193.1 	(1) payment of the initial mortgage insurance premium for a reverse mortgage. 
193.2 	The maximum payment under this clause shall be limited to $1,500. This limit shall be 
193.3 	adjusted annually on April 1 by the percentage change for the previous calendar year in the 
193.4 	housing component of the United States Consumer Price Index - All Urban Consumers;
193.5 	(2) with federal approval, payments to reduce service fee set-asides, through an 
193.6 	advance payment to the lender, an agreement to guarantee fee payments after 60 months 
193.7 	if the set-aside is limited to 60 months, or through other mechanisms approved by the 
193.8 	commissioner; and 
193.9 	(3) other incentives approved by the commissioner.
193.10 	(d) After calculating the adjusted maximum payment limits under paragraphs (b) 
193.11 	and (c), the commissioner shall annually notify the Office of the Revisor of Statutes in 
193.12 	writing, on or before May 1, of the adjusted limits. The revisor shall annually publish in 
193.13 	the Minnesota Statutes the adjusted maximum payment limits under paragraph (b).

193.14 	Sec. 58. Laws 2005, First Special Session chapter 4, article 9, section 5, subdivision 8, 
193.15 	is amended to read:

193.16	Subd. 8.Board of Nursing
 		3,078,000
		3,631,000
	
193.17 	
193.18 	BASE ADJUSTMENT. The base for the  
193.19 	board of nursing is increased by  $141,000 
193.20 	in fiscal year 2008 and by  $216,000 in fiscal 
193.21 	year 2009.  
193.22 	BOARD OF NURSING 
193.23 	APPROPRIATIONS  INCREASE. Of 
193.24 	this appropriation,  $120,000 the first year 
193.25 	and $126,000  the second year are for the 
193.26 	increased  cost of board operations, excluding  
193.27 	salary increases and $85,000 each year  is to 
193.28 	hire an advanced practice  registered nurse.  
193.29 	TRANSFERS FROM SPECIAL 
193.30 	REVENUE FUND.  Of this appropriation, 
193.31 	the following  transfers shall be made as 
193.32 	directed  from the state government special  
193.33 	revenue fund:  
194.1 	(a) $392,000 in fiscal year 2006,  $864,000 
194.2 	in fiscal year 2007, $930,000  in fiscal year 
194.3 	2008, and $930,000 in  fiscal year 2009 
194.4 	shall be transferred  to the general fund 
194.5 	and is appropriated  to the Department 
194.6 	of Human Services to  offset the state 
194.7 	share of the medical  assistance program 
194.8 	costs of the  long-term care and home and  
194.9 	community-based care employee  scholarship 
194.10 	program and associated  administrative costs.  
194.11 	At the end of  each biennium, any funds 
194.12 	not expended  for the scholarship program 
194.13 	and  associated administrative costs shall  
194.14 	be transferred to the state government 
194.15 	special revenue fund carried over to the 
194.16 	next biennium for the same purpose.  
194.17 	Notwithstanding  section 15, this paragraph 
194.18 	expires June  30, 2009 2011.  
194.19 	(b) $125,000 the first year and  $200,000 the 
194.20 	second year shall be  transferred to the health 
194.21 	professional  education loan forgiveness 
194.22 	program  account for loan forgiveness 
194.23 	for nurses  under Minnesota Statutes, 
194.24 	section  144.1501.  This appropriation shall  
194.25 	become part of base level funding for  the 
194.26 	commissioner for the biennium  beginning 
194.27 	July 1, 2007, but shall not  be part of base 
194.28 	level funding for the  biennium beginning 
194.29 	July 1, 2009.  Notwithstanding section 15, 
194.30 	this  paragraph expires on June 30, 2009.  

194.31 	Sec. 59. FEDERAL GOVERNMENT CHANGES.
 194.32 	The commissioner of human services shall seek reimbursement from the federal 
194.33 	government for funds expended by the state to provide drug coverage to medical 
194.34 	assistance recipients who are enrolled or in the process of enrolling in Medicare Part 
194.35 	D. The commissioner shall also continue to pursue federal changes to Medicare Part D 
195.1 	to address lapses in drug coverage for medical assistance recipients who are enrolled 
195.2 	in Medicare Part D but who are taking prescription drugs that are not included in the 
195.3 	formularies used by the Medicare Part D drug plans that meet the low-income premium 
195.4 	benchmark set for Minnesota or who are in the process of enrolling in a Medicare Part 
195.5 	D prescription drug plan.

195.6 	Sec. 60. PHARMACY PAYMENT REFORM ADVISORY COMMITTEE.
 195.7 		Subdivision 1.Definitions. For purposes of this section, the following words, terms, 
195.8 	and phrases have the following meanings:
195.9 	(a) "Department" means the Department of Human Services.
195.10 	(b) "Commissioner" means the commissioner of human services.
195.11 	(c) "Cost of dispensing" includes, but is not limited to, operational and overhead 
195.12 	costs; professional counseling as required under the Omnibus Budget Reconciliation Act 
195.13 	of 1990, excluding medication management services under Minnesota Statutes, section 
195.14 	256B.0625, subdivision 13h; salaries; and other associated administrative costs, as well 
195.15 	as a reasonable return on investment. In addition, cost of dispensing includes expenses 
195.16 	transferred by wholesale drug distributors to pharmacies as a result of the wholesale drug 
195.17 	distributor tax under Minnesota Statutes, sections 295.52 to 295.582.
195.18 	(d) "Additional costs" include, but are not limited to, costs relating to coordination of 
195.19 	benefits, bad debt, uncollected co-pays, payment lag times, and high rate of rejected claims.
195.20 	(e) "Advisory committee" means the Pharmacy Payment Reform Advisory 
195.21 	Committee established by this section.
195.22 		Subd. 2.Advisory committee. The Pharmacy Payment Reform Advisory 
195.23 	Committee is established under the direction of the commissioner of human services. 
195.24 	The commissioner, after receiving recommendations from the Minnesota Pharmacists 
195.25 	Association, the Minnesota Retailers Association, the Minnesota Hospital Association, 
195.26 	and the Minnesota Wholesale Druggists Association, shall convene a pharmacy payment 
195.27 	reform advisory committee to advise the commissioner and make recommendations to the 
195.28 	legislature on implementation of pharmacy reforms contained in title VI, chapter IV, of 
195.29 	the Deficit Reduction Act of 2005. The committee shall be comprised of three licensed 
195.30 	pharmacists representing both independent and chain pharmacy entities, one of whom 
195.31 	must have expertise in pharmacoeconomics, two individuals representing hospitals with 
195.32 	outpatient pharmacies, and two individuals with expertise in wholesale drug distribution. 
195.33 	The committee shall be staffed by an employee of the department who shall serve as an 
195.34 	ex officio nonvoting member of the committee. The department's pharmacy program 
195.35 	manager shall also serve as an ex officio, nonvoting member of the committee. The 
196.1 	committee is governed by Minnesota Statutes, section 15.059, except that committee 
196.2 	members do not receive compensation or reimbursement for expenses. The advisory 
196.3 	committee expires on January 31, 2008.
196.4 		Subd. 3.Cost of dispensing study. The commissioner shall conduct a prescription 
196.5 	drug cost of dispensing study to determine the average cost of dispensing Medicaid 
196.6 	prescriptions in Minnesota. The commissioner shall contract with an independent third 
196.7 	party in the state that has experience conducting business cost allocation studies, such as 
196.8 	an academic institution, to conduct a prescription drug cost of dispensing study. If no 
196.9 	independent third-party entity exists in the state, the commissioner may contract with an 
196.10 	out-of-state entity. The cost of dispensing study shall be completed by an independent 
196.11 	third party no later than October 1, 2006, and reported to the commissioner and the 
196.12 	advisory committee upon completion.
196.13 		Subd. 4.Content of study. The study shall determine the cost of dispensing 
196.14 	the average prescription and any additional costs that might be incurred for dispensing 
196.15 	Medicaid prescriptions. The study shall include the current level of dispensing fees paid 
196.16 	to providers and an estimate of revenues required to adequately adjust reimbursement 
196.17 	to cover the cost to pharmacies.
196.18 		Subd. 5.Methodology of study and publishing requirement. The independent 
196.19 	third-party entity performing the cost of dispensing research shall submit to the advisory 
196.20 	committee the entity's proposed research methodology and shall publish the collected data 
196.21 	to allow other independent researchers to validate the study results. The data shall be 
196.22 	published in a manner that does not identify the source of the data.
196.23 		Subd. 6.Recommendations. The advisory committee shall use the information 
196.24 	from the cost of dispensing study and make recommendations to the commissioner on 
196.25 	implementation of pharmacy reforms contained in title VI, chapter IV, of the Deficit 
196.26 	Reduction Act of 2005. The commissioner shall report the findings of the study and the 
196.27 	recommendations of the advisory committee to the legislature by January 15, 2007. The 
196.28 	commissioner, in consultation with the advisory committee, shall make recommendations 
196.29 	to the legislature on how to adequately adjust reimbursement rates to pharmacies to cover 
196.30 	the costs of dispensing and additional costs to pharmacies. Reports shall include the 
196.31 	current level of dispensing fees paid to providers and an estimate of revenues required to 
196.32 	adequately adjust reimbursement to ensure that:
196.33 	(1) reimbursement is sufficient to enlist an adequate number of participating 
196.34 	pharmacy providers so that pharmacy services are as available for Medicaid recipients 
196.35 	under the program as for the state's general population;
197.1 	(2) Medicaid dispensing fees are adequate to reimburse pharmacy providers for the 
197.2 	costs of dispensing prescriptions under the Medicaid program;
197.3 	(3) Medicaid pharmacy reimbursement for multiple-source drugs included on the 
197.4 	federal upper reimbursement limit is set at the level established by the federal government 
197.5 	under United States Code, title 42, section 1396r-8(e)(5);
197.6 	(4) the combined Medicaid program reimbursement for prescription drug product 
197.7 	and the dispensing fee provides a return adequate to provide a reasonable profit for the 
197.8 	participating pharmacy; and
197.9 	(5) the new payment system does not create disincentives for pharmacists to 
197.10 	dispense generic drugs.

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

197.12 	Sec. 61. REPAYMENT DELAY.
 197.13 	A county that overspent its allowed amounts in calendar year 2004 or 2005 under 
197.14 	the waivered services program for persons with developmental disabilities shall not be 
197.15 	required to pay back the amount of overspending until May 31, 2007.

197.16 	Sec. 62. STAKEHOLDER PARTICIPATION.
 197.17 	The commissioner of human services shall confer with one or more stakeholder 
197.18 	groups of interested persons, including representatives of recipients, advocacy groups, 
197.19 	counties, providers, and health plans to provide information and advice on the development 
197.20 	of any substantial proposals for changes in the medical assistance program authorized by 
197.21 	the federal Deficit Reduction Act of 2005, Public Law 109-171. In addition, for any 
197.22 	substantial Deficit Reduction Act-related medical assistance change that affects recipients 
197.23 	and that is proposed outside of the legislative or rulemaking process, the commissioner 
197.24 	shall convene a stakeholder meeting and provide a 30-day comment period before the 
197.25 	change becomes effective. If the time frame required to comply with a federal mandate 
197.26 	precludes the 30-day advance notice, notice shall be given to the stakeholder group as 
197.27 	soon as possible.

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

197.29 	Sec. 63. REVISOR'S INSTRUCTION.
 197.30 		(a) The revisor of statutes shall strike all references to the "Class E assisted living 
197.31 	home care programs license," "Class E license," and similar terms in Minnesota Rules, 
197.32 	chapters 4668 and 4669. In sections affected by this instruction, the revisor may make 
198.1 	changes necessary to correct the punctuation, grammar, or structure of the remaining text 
198.2 	and preserve its meaning.
198.3 		(b) The revisor of statutes shall change the term "assisted living home care provider," 
198.4 	"assisted living license," and similar terms to "Class F home care provider," "Class F 
198.5 	license," in Minnesota Rules, chapter 4668. In sections affected by this instruction, the 
198.6 	revisor may make changes necessary to correct the punctuation, grammar, or structure of 
198.7 	the remaining text and preserve its meaning.

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

198.9 	Sec. 64.  REPEALER.
 198.10 	(a) Minnesota Statutes 2005 Supplement, section 256L.035, is repealed, effective 
198.11 	July 1, 2007.
198.12 	(b) Minnesota Rules, part 4668.0215, is repealed, effective January 1, 2007.

198.13 	ARTICLE 20
198.14 	HEALTH CARE FEDERAL COMPLIANCE

198.15 	Section 1. Minnesota Statutes 2004, section 62A.045, is amended to read:
198.16 	62A.045 PAYMENTS ON BEHALF OF ENROLLEES IN GOVERNMENT 
198.17 	HEALTH PROGRAMS.
198.18 	(a) As a condition of doing business in Minnesota, each health insurer shall comply 
198.19 	with the requirements of the federal Deficit Reduction Act of 2005, Public Law 109-171, 
198.20 	including any federal regulations adopted under that act, to the extent that it imposes a 
198.21 	requirement that applies in this state and that is not also required by the laws of this state. 
198.22 	This section does not require compliance with any provision of the federal act prior to 
198.23 	the effective date provided for that provision in the federal act. The commissioner shall 
198.24 	enforce this section.
198.25 	For the purpose of this section, "health insurer" includes self-insured plans; group 
198.26 	health plans, as defined in section 607(1) of the Employee Retirement Income Security Act 
198.27 	of 1974; service benefit plans; managed care organizations; pharmacy benefit managers; 
198.28 	or other parties that are by contract legally responsible to pay a claim for a healthcare item 
198.29 	or service for an individual receiving benefits under paragraph (b).
198.30 	(b) No health plan issued or renewed to provide coverage to a Minnesota resident 
198.31 	shall contain any provision denying or reducing benefits because services are rendered to a 
198.32 	person who is eligible for or receiving medical benefits pursuant to title XIX of the Social 
198.33 	Security Act (Medicaid) in this or any other state; chapter 256; 256B; or 256D or services 
199.1 	pursuant to section  252.27;  256L.01 to  256L.10;  260B.331, subdivision 2;  260C.331, 
199.2 	subdivision 2; or  393.07, subdivision 1 or 2. No health carrier providing benefits under 
199.3 	plans covered by this section shall use eligibility for medical programs named in this 
199.4 	section as an underwriting guideline or reason for nonacceptance of the risk. 
199.5 	(b) (c) If payment for covered expenses has been made under state medical programs 
199.6 	for health care items or services provided to an individual, and a third party has a legal 
199.7 	liability to make payments, the rights of payment and appeal of an adverse coverage 
199.8 	decision for the individual, or in the case of a child their responsible relative or caretaker, 
199.9 	will be subrogated to the state agency. The state agency may assert its rights under this 
199.10 	section within three years of the date the service was rendered. For purposes of this 
199.11 	section, "state agency" includes prepaid health plans under contract with the commissioner 
199.12 	according to sections  256B.69,  256D.03, subdivision 4, paragraph (c), and  256L.12; 
199.13 	children's mental health collaboratives under section  245.493; demonstration projects for 
199.14 	persons with disabilities under section  256B.77; nursing homes under the alternative 
199.15 	payment demonstration project under section  256B.434; and county-based purchasing 
199.16 	entities under section  256B.692. 
199.17 	(c) (d) Notwithstanding any law to the contrary, when a person covered by a health 
199.18 	plan receives medical benefits according to any statute listed in this section, payment for 
199.19 	covered services or notice of denial for services billed by the provider must be issued 
199.20 	directly to the provider. If a person was receiving medical benefits through the Department 
199.21 	of Human Services at the time a service was provided, the provider must indicate this 
199.22 	benefit coverage on any claim forms submitted by the provider to the health carrier for 
199.23 	those services. If the commissioner of human services notifies the health carrier that 
199.24 	the commissioner has made payments to the provider, payment for benefits or notices 
199.25 	of denials issued by the health carrier must be issued directly to the commissioner. 
199.26 	Submission by the department to the health carrier of the claim on a Department of 
199.27 	Human Services claim form is proper notice and shall be considered proof of payment of 
199.28 	the claim to the provider and supersedes any contract requirements of the health carrier 
199.29 	relating to the form of submission. Liability to the insured for coverage is satisfied to the 
199.30 	extent that payments for those benefits are made by the health carrier to the provider or the 
199.31 	commissioner as required by this section.
199.32 	(d) (e) When a state agency has acquired the rights of an individual eligible for 
199.33 	medical programs named in this section and has health benefits coverage through a 
199.34 	health carrier, the health carrier shall not impose requirements that are different from 
199.35 	requirements applicable to an agent or assignee of any other individual covered.
200.1 	(e) (f) For the purpose of this section, health plan includes coverage offered by 
200.2 	community integrated service networks, any plan governed under the federal Employee 
200.3 	Retirement Income Security Act of 1974 (ERISA), United States Code, title 29, sections 
200.4 	1001 to 1461, and coverage offered under the exclusions listed in section  62A.011, 
200.5 	subdivision 3, clauses (2), (6), (9), (10), and (12). 

200.6 	Sec. 2. Minnesota Statutes 2004, section 144.6501, subdivision 6, is amended to read:
200.7 		Subd. 6.Medical assistance payment. (a) An admission contract for a facility that 
200.8 	is certified for participation in the medical assistance program must state that neither the 
200.9 	prospective resident, nor anyone on the resident's behalf, is required to pay privately any 
200.10 	amount for which the resident's care at the facility has been approved for payment by 
200.11 	medical assistance or to make any kind of donation, voluntary or otherwise. Except as 
200.12 	permitted under section 6015 of the Deficit Reduction Act of 2005, Public Law 109-171, 
200.13 	an admission contract must state that the facility does not require as a condition of 
200.14 	admission, either in its admission contract or by oral promise before signing the admission 
200.15 	contract, that residents remain in private pay status for any period of time.
200.16 	(b) The admission contract must state that upon presentation of proof of eligibility, 
200.17 	the facility will submit a medical assistance claim for reimbursement and will return any 
200.18 	and all payments made by the resident, or by any person on the resident's behalf, for 
200.19 	services covered by medical assistance, upon receipt of medical assistance payment.
200.20 	(c) A facility that participates in the medical assistance program shall not charge for 
200.21 	the day of the resident's discharge from the facility or subsequent days.
200.22 	(d) If a facility's charges incurred by the resident are delinquent for 30 days, and 
200.23 	no person has agreed to apply for medical assistance for the resident, the facility may 
200.24 	petition the court under chapter 525 to appoint a representative for the resident in order to 
200.25 	apply for medical assistance for the resident.
200.26 	(e) The remedy provided in this subdivision does not preclude a facility from seeking 
200.27 	any other remedy available under other laws of this state.

200.28 	Sec. 3. Minnesota Statutes 2004, section 256B.02, subdivision 9, is amended to read:
200.29 		Subd. 9.Private health care coverage. "Private health care coverage" means any 
200.30 	plan regulated by chapter 62A, 62C or 64B. Private health care coverage also includes 
200.31 	any self-insuranceself-insured plan providing health care benefits, pharmacy benefit 
200.32 	manager, service benefit plan, managed care organization, and other parties that are by 
200.33 	contract legally responsible for payment of a claim for a health care item or service for an 
200.34 	individual receiving medical benefits under chapter 256B, 256D, or 256L.

201.1 	Sec. 4. Minnesota Statutes 2004, section 256B.056, subdivision 2, is amended to read:
201.2 		Subd. 2.Homestead; exclusion  and homestead equity limit for institutionalized 
201.3 	persons. (a) The homestead shall be excluded for the first six calendar months of a 
201.4 	person's stay in a long-term care facility and shall continue to be excluded for as long as 
201.5 	the recipient can be reasonably expected to return to the homestead. For purposes of 
201.6 	this subdivision, "reasonably expected to return to the homestead" means the recipient's 
201.7 	attending physician has certified that the expectation is reasonable, and the recipient can 
201.8 	show that the cost of care upon returning home will be met through medical assistance 
201.9 	or other sources. The homestead shall continue to be excluded for persons residing in 
201.10 	a long-term care facility if it is used as a primary residence by one of the following 
201.11 	individuals:
201.12 	(a) (1) the spouse;
201.13 	(b) (2) a child under age 21;
201.14 	(c) (3) a child of any age who is blind or permanently and totally disabled as defined 
201.15 	in the supplemental security income program;
201.16 	(d) (4) a sibling who has equity interest in the home and who resided in the home for 
201.17 	at least one year immediately before the date of the person's admission to the facility; or
201.18 	(e) (5) a child of any age, or, subject to federal approval, a grandchild of any age, 
201.19 	who resided in the home for at least two years immediately before the date of the person's 
201.20 	admission to the facility, and who provided care to the person that permitted the person to 
201.21 	reside at home rather than in an institution.
201.22 	(b) Effective for applications filed on or after July 1, 2006, and for renewals after 
201.23 	July 1, 2006, for persons who first applied for payment of long-term care services on 
201.24 	or after January 2, 2006, the equity interest in the homestead of an individual whose 
201.25 	eligibility for long-term care services is determined on or after January 1, 2006, shall not 
201.26 	exceed $500,000, unless it is the lawful residence of the individual's spouse or child 
201.27 	who is under age 21, blind, or disabled. The amount specified in this paragraph shall be 
201.28 	increased beginning in year 2011, from year-to-year based on the percentage increase in 
201.29 	the Consumer Price Index for all urban consumers (all items; United States city average), 
201.30 	rounded to the nearest $1,000. This provision may be waived in the case of demonstrated 
201.31 	hardship by a process to be determined by the secretary of health and human services 
201.32 	pursuant to section 6014 of the Deficit Reduction Act of 2005, Public Law 109-171.

201.33 	Sec. 5. Minnesota Statutes 2004, section 256B.056, is amended by adding a 
201.34 	subdivision to read:
202.1 		Subd. 3e.Treatment of continuing care retirement and life care community 
202.2 	entrance fees. An entrance fee paid by an individual to a continuing care retirement or 
202.3 	life care community shall be treated as an available asset to the extent that:
202.4 	(1) the individual has the ability to use the entrance fee, or the contract provides that 
202.5 	the entrance fee may be used, to pay for care should other resources or income of the 
202.6 	individual be insufficient to pay for care;
202.7 	(2) the individual is eligible for a refund of any remaining entrance fees when 
202.8 	the individual dies or terminates the continuing care retirement or life care community 
202.9 	contract and leaves the community; and
202.10 	(3) the entrance fee does not confer an ownership interest in the continuing care 
202.11 	retirement or life care community.

202.12 	Sec. 6. Minnesota Statutes 2004, section 256B.056, is amended by adding a 
202.13 	subdivision to read:
202.14 		Subd. 11.Treatment of annuities. (a) Any individual applying for or seeking 
202.15 	recertification of eligibility for medical assistance payment of long-term care services 
202.16 	shall provide a complete description of any interest either the individual or the individual's 
202.17 	spouse has in annuities. The individual and the individual's spouse shall furnish the 
202.18 	agency responsible for determining eligibility with complete current copies of their 
202.19 	annuities and related documents for review as part of the application process on disclosure 
202.20 	forms provided by the department as part of their application.
202.21 	(b) The disclosure form shall include a statement that the department becomes the 
202.22 	remainder beneficiary under the annuity or similar financial instrument by virtue of the 
202.23 	receipt of medical assistance. The disclosure form shall include a notice to the issuer of 
202.24 	the department's right under this section as a preferred remainder beneficiary under the 
202.25 	annuity or similar financial instrument for medical assistance furnished to the individual 
202.26 	or the individual's spouse, and require the issuer to provide confirmation that a remainder 
202.27 	beneficiary designation has been made and to notify the county agency when there is a 
202.28 	change in the amount of the income or principal being withdrawn from the annuity or 
202.29 	other similar financial instrument at the time of the most recent disclosure required under 
202.30 	this section. The individual and the individual's spouse shall execute separate disclosure 
202.31 	forms for each annuity or similar financial instrument that they are required to disclose 
202.32 	under this section and in which they have an interest.
202.33 	(c) An issuer of an annuity or similar financial instrument who receives notice on a 
202.34 	disclosure form as described in paragraph (b) shall provide confirmation to the requesting 
202.35 	agency that a remainder beneficiary designating the state has been made and shall notify 
203.1 	the county agency when there is a change in the amount of income or principal being 
203.2 	withdrawn from the annuity or other similar financial instrument.

203.3 	Sec. 7. Minnesota Statutes 2005 Supplement, section 256B.0571, is amended to read:
203.4 	256B.0571 LONG-TERM CARE PARTNERSHIP PROGRAM.
203.5 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
203.6 	the meanings given them.
203.7 		Subd. 2.Home care service. "Home care service" means care described in section 
203.8 	144A.43.
203.9 		Subd. 3.Long-term care insurance. "Long-term care insurance" means a policy 
203.10 	described in section 62S.01.
203.11 		Subd. 4.Medical assistance. "Medical assistance" means the program of medical 
203.12 	assistance established under section 256B.01.
203.13 		Subd. 5.Nursing home. "Nursing home" means a nursing home as described 
203.14 	in section 144A.01.
203.15 		Subd. 6.Partnership policy. "Partnership policy" means a long-term care insurance 
203.16 	policy that meets the requirements under subdivision 10 or 11, regardless of when the 
203.17 	policy and was first issued on or after the effective date of the state plan amendment 
203.18 	implementing the partnership program in Minnesota.
203.19 		Subd. 7.Partnership program. "Partnership program" means the Minnesota 
203.20 	partnership for long-term care program established under this section.
203.21 		Subd. 7a.Protected assets. "Protected assets" means assets or proceeds of assets 
203.22 	that are protected from recovery under subdivisions 13 and 15.
203.23 		Subd. 8.Program established. (a) The commissioner, in cooperation with the 
203.24 	commissioner of commerce, shall establish the Minnesota partnership for long-term care 
203.25 	program to provide for the financing of long-term care through a combination of private 
203.26 	insurance and medical assistance.
203.27 	(b) An individual who meets the requirements in this paragraph is eligible to 
203.28 	participate in the partnership program. The individual must:
203.29 	(1) be a Minnesota resident at the time coverage first became effective under the 
203.30 	partnership policy;
203.31 	(2) purchase a partnership policy that is delivered, issued for delivery, or renewed on 
203.32 	or after the effective date of Laws 2005, First Special Session chapter 4, article 7, section 
203.33 	5, and maintain the partnership policy in effect throughout the period of participation 
203.34 	in the partnership program be a beneficiary of a partnership policy  that (i) is issued on 
203.35 	or after the effective date of the state plan amendment implementing the partnership 
204.1 	program in Minnesota, or (ii) qualifies as a partnership policy under the provisions of 
204.2 	subdivision 8a; and
204.3 	(3) exhaust the minimumhave exhausted all of the benefits under the partnership 
204.4 	policy as described in this section. Benefits received under a long-term care insurance 
204.5 	policy before the effective date of Laws 2005, First Special Session chapter 4, article 7, 
204.6 	section 5 July 1, 2006, do not count toward the exhaustion of benefits required in this 
204.7 	subdivision.
204.8 		Subd. 8a.Exchange for long-term care partnership policy; addition of policy 
204.9 	rider. (a) If federal law is amended or federal approval is granted with respect to the 
204.10 	partnership program established in this section, a long-term care insurance policy that 
204.11 	was issued before the effective date of the state plan amendment implementing the 
204.12 	partnership program in Minnesota that was exchanged after the effective date of the state 
204.13 	plan amendment for a long-term care partnership policy that meets the requirements 
204.14 	of Public Law 109-171, section 6021, qualifies as a long-term care partnership policy 
204.15 	under this section.
204.16 	(b) If federal law is amended or federal approval is granted with respect to the 
204.17 	partnership program established in this section, a long-term care insurance policy that was 
204.18 	issued before the effective date of the state plan amendment implementing the partnership 
204.19 	program in Minnesota that has a rider added after the effective date of the state plan 
204.20 	amendment that meets the requirements of Public Law 109-171, section 6021, qualifies 
204.21 	as a long-term care partnership policy under this section.
204.22 		Subd. 9.Medical assistance eligibility. (a) Upon application offor medical 
204.23 	assistance program payment of long-term care services by an individual who meets the 
204.24 	requirements described in subdivision 8, the commissioner shall determine the individual's 
204.25 	eligibility for medical assistance according to paragraphs (b) and (c) to (i).
204.26 	(b) After disregarding financialdetermining assets exempted under medical 
204.27 	assistance eligibility requirements subject to the asset limit under section 256B.056, 
204.28 	subdivision 3 or 3c, or 256B.057, subdivision 9 or 10, the commissioner shall disregard an 
204.29 	additional amount of financial assets equalallow the individual to designate assets to be 
204.30 	protected from recovery under subdivisions 13 and 15 up to the dollar amount of coverage
204.31 	the benefits utilized under the partnership policy. Designated assets shall be disregarded 
204.32 	for purposes of determining eligibility for payment of long-term care services.
204.33 	(c) The commissioner shall consider the individual's income according to medical 
204.34 	assistance eligibility requirements. The individual shall identify the designated assets and 
204.35 	the full fair market value of those assets and designate them as assets to be protected at 
204.36 	the time of initial application for medical assistance. The full fair market value of real 
205.1 	property or interests in real property shall be based on the most recent full assessed value 
205.2 	for property tax purposes for the real property, unless the individual provides a complete 
205.3 	professional appraisal by a licensed appraiser to establish the full fair market value. The 
205.4 	extent of a life estate in real property shall be determined using the life estate table in the 
205.5 	health care program's manual. Ownership of any asset in joint tenancy shall be treated as 
205.6 	ownership as tenants in common for purposes of its designation as a disregarded asset. 
205.7 	The unprotected value of any protected asset is subject to estate recovery according to 
205.8 	subdivisions 13 and 15.
205.9 	(d) The right to designate assets to be protected is personal to the individual and 
205.10 	ends when the individual dies, except as otherwise provided in subdivisions 13 and 
205.11 	15. It does not include the increase in the value of the protected asset and the income, 
205.12 	dividends, or profits from the asset. It may be exercised by the individual or by anyone 
205.13 	with the legal authority to do so on the individual's behalf. It shall not be sold, assigned, 
205.14 	transferred, or given away.
205.15 	(e) If the dollar amount of the benefits utilized under a partnership policy is greater 
205.16 	than the full fair market value of all assets protected at the time of the application for 
205.17 	medical assistance long-term care services, the individual may designate additional assets 
205.18 	that become available during the individual's lifetime for protection under this section. 
205.19 	The individual must make the designation in writing to the county agency no later than 
205.20 	the last date on which the individual must report a change in circumstances to the county 
205.21 	agency, as provided for under the medical assistance program. Any excess used for this 
205.22 	purpose shall not be available to the individual's estate to protect assets in the estate from 
205.23 	recovery under section 256B.15 or 524.3-1202, or otherwise.
205.24 	(f) This section applies only to estate recovery under United States Code, title 42, 
205.25 	section 1396p, subsections (a) and (b), and does not apply to recovery authorized by other 
205.26 	provisions of federal law, including, but not limited to, recovery from trusts under United 
205.27 	States Code, title 42, section 1396p, subsection (d)(4)(A) and (C), or to recovery from 
205.28 	annuities, or similar legal instruments, subject to section 6012, subsections (a) and (b), of 
205.29 	the Deficit Reduction Act of 2005, Public Law 109-171.
205.30 	(g) An individual's protected assets owned by the individual's spouse who applies 
205.31 	for payment of medical assistance long-term care services shall not be protected assets or 
205.32 	disregarded for purposes of eligibility of the individual's spouse solely because they were 
205.33 	protected assets of the individual.
205.34 	(h) Assets designated under this subdivision shall not be subject to penalty under 
205.35 	section 256B.0595.
206.1 	(i) The commissioner shall otherwise determine the individual's eligibility 
206.2 	for payment of long-term care services according to medical assistance eligibility 
206.3 	requirements.
206.4 		Subd. 10.Dollar-for-dollar asset protection policiesLong-term care partnership 
206.5 	policy inflation protection. (a) A dollar-for-dollar asset protection policy must meet all 
206.6 	of the requirements in paragraphs (b) to (e).
206.7 	(b) The policy must satisfy the requirements of chapter 62S.
206.8 	(c) The policy must offer an elimination period of not more than 180 days for an 
206.9 	adjusted premium.
206.10 	(d) The policy must satisfy the requirements established by the commissioner of 
206.11 	human services under subdivision 14.
206.12 	(e) Minimum daily benefits shall be $130 for nursing home care or $65 for home 
206.13 	care, with inflation protection provided in the policy as described in section 62S.23, 
206.14 	subdivision 1, clause (1). These minimum daily benefit amounts shall be adjusted by the 
206.15 	commissioner on October 1 of each year by a percentage equal to the inflation protection 
206.16 	feature described in section 62S.23, subdivision 1, clause (1), for purposes of setting 
206.17 	minimum requirements that a policy must meet in future years in order to initially qualify 
206.18 	as an approved policy under this subdivision. Adjusted minimum daily benefit amounts 
206.19 	shall be rounded to the nearest whole dollar.A long-term care partnership policy must 
206.20 	provide the inflation protection described in this subdivision. If the policy is sold to an 
206.21 	individual who:
206.22 	(1) has not attained age 61 as of the date of purchase, the policy must provide 
206.23 	compound annual inflation protection;
206.24 	(2) has attained age 61, but has not attained age 76 as of such date, the policy must 
206.25 	provide some level of inflation protection; and
206.26 	(3) has attained age 76 as of such date, the policy may, but is not required to, provide 
206.27 	some level of inflation protection.
206.28 		Subd. 11.Total asset protection policies. (a) A total asset protection policy must 
206.29 	meet all of the requirements in subdivision 10, paragraphs (b) to (d), and this subdivision.
206.30 	(b) Minimum coverage shall be for a period of not less than three years and for a 
206.31 	dollar amount equal to 36 months of nursing home care at the minimum daily benefit rate 
206.32 	determined and adjusted under paragraph (c).
206.33 	(c) Minimum daily benefits shall be $150 for nursing home care or $75 for home 
206.34 	care, with inflation protection provided in the policy as described in section 62S.23, 
206.35 	subdivision 1, clause (1). These minimum daily benefit amounts shall also be adjusted 
206.36 	by the commissioner on October 1 of each year by a percentage equal to the inflation 
207.1 	protection feature described in section 62S.23, subdivision 1, clause (1), for purposes of 
207.2 	setting minimum requirements that a policy must meet in future years in order to initially 
207.3 	qualify as an approved policy under this subdivision. Adjusted minimum daily benefit 
207.4 	amounts shall be rounded to the nearest whole dollar.
207.5 	(d) The policy must cover all of the following services:
207.6 	(1) nursing home stay;
207.7 	(2) home care service; and
207.8 	(3) care management.
207.9 		Subd. 12.Compliance with federal law. An issuer of a partnership policy must 
207.10 	comply with any federal law authorizing partnership policies in Minnesota Public Law 
207.11 	109-171, section 6021, including any federal regulations, as amended, adopted under that 
207.12 	law. This subdivision does not require compliance with any provision of this federal 
207.13 	law until the date upon which the law requires compliance with the provision. The 
207.14 	commissioner has authority to enforce this subdivision.
207.15 		Subd. 13.Limitations on estate recovery. (a) For an individual who exhausts the 
207.16 	minimum benefits of adollar-for-dollar asset protectionpolicy under subdivision 10, and 
207.17 	is determined eligible for medical assistance under subdivision 9, the state shall limit 
207.18 	recovery under the provisions of section 256B.15 against the estate of the individual 
207.19 	or individual's spouse for medical assistance benefits received by that individual to an 
207.20 	amount that exceeds the dollar amount of coverage utilized under the partnership policy.
207.21 	Protected assets of the individual shall not be subject to recovery under section 256B.15 
207.22 	or 524.3-1201 for medical assistance or alternative care paid on behalf of the individual. 
207.23 	Protected assets of the individual in the estate of the individual's surviving spouse shall 
207.24 	not be liable to pay a claim for recovery of medical assistance paid for the predeceased 
207.25 	individual that is filed in the estate of the surviving spouse under section 256B.15. 
207.26 	Protected assets of the individual shall not be protected assets in the surviving spouse's 
207.27 	estate by reason of the preceding sentence and shall be subject to recovery under section 
207.28 	256B.15 or 524.3-1201 for medical assistance paid on behalf of the surviving spouse.
207.29 	(b) For an individual who exhausts the minimum benefits of a total asset protection 
207.30 	policy under subdivision 11, and is determined eligible for medical assistance under 
207.31 	subdivision 9, the state shall not seek recovery under the provisions of section 256B.15
207.32 	against the estate of the individual or individual's spouse for medical assistance benefits 
207.33 	received by that individual. The personal representative may protect the full fair market 
207.34 	value of an individual's unprotected assets in the individual's estate in an amount equal 
207.35 	to the unused amount of asset protection the individual had on the date of death. The 
207.36 	personal representative shall apply the asset protection so that the full fair market value of 
208.1 	any unprotected asset in the estate is protected. When or if the asset protection available 
208.2 	to the personal representative is or becomes less than the full fair market value of any 
208.3 	remaining unprotected asset, it shall be applied to partially protect one unprotected asset.
208.4 	(c) The asset protection described in paragraph (a) terminates with respect to an asset 
208.5 	includable in the individual's estate under chapter 524 or section 256B.15:
208.6 	(1) when the estate distributes the asset; or
208.7 	(2) if the estate of the individual has not been probated within one year from the 
208.8 	date of death.
208.9 	(d) If an individual owns a protected asset on the date of death and the estate is 
208.10 	opened for probate more than one year after death, the state or a county agency may file 
208.11 	and collect claims in the estate under section 256B.15, and no statute of limitations in 
208.12 	chapter 524 that would otherwise limit or bar the claim shall apply.
208.13 	(e) Except as otherwise provided, nothing in this section shall limit or prevent 
208.14 	recovery of medical assistance.
208.15 		Subd. 14.Implementation. (a) If federal law is amended or a federal waiver is 
208.16 	granted to permit implementation of this section, the commissioner, in consultation with 
208.17 	the commissioner of commerce, may alter the requirements of subdivisions 10 and 11, 
208.18 	and may establish additional requirements for approved policies in order to conform with 
208.19 	federal law or waiver authority. In establishing these requirements, the commissioner shall 
208.20 	seek to maximize purchase of qualifying policies by Minnesota residents while controlling 
208.21 	medical assistance costs.
208.22 	(b) The commissioner is authorized to suspend implementation of this section 
208.23 	until the next session of the legislature if the commissioner, in consultation with the 
208.24 	commissioner of commerce, determines that the federal legislation or federal waiver 
208.25 	authorizing a partnership program in Minnesota is likely to impose substantial unforeseen 
208.26 	costs on the state budget.
208.27 	(c) The commissioner must take action under paragraph (a) or (b) within 45 days of 
208.28 	final federal action authorizing a partnership policy in Minnesota.
208.29 	(d) The commissioner must notify the appropriate legislative committees of 
208.30 	action taken under this subdivision within 50 days of final federal action authorizing a 
208.31 	partnership policy in Minnesota.
208.32 	(e) The commissioner must publish a notice in the State Register of implementation 
208.33 	decisions made under this subdivision as soon as practicable.
208.34 	(a) The commissioner, in cooperation with the commissioner of commerce, shall 
208.35 	pursue any federal law changes or waiver necessary to implement the long-term care 
208.36 	partnership program requirements of Public Law 109-171, section 6021.
209.1 	(b) The commissioner shall submit a state plan amendment to the federal government 
209.2 	to implement the long-term care partnership program in accordance with this section.
209.3 		Subd. 15.Limitation on liens. (a) An individual's interest in real property shall 
209.4 	not be subject to a medical assistance lien or a notice of potential claim while and to the 
209.5 	extent it is protected under subdivision 9.
209.6 	(b) Medical assistance liens or liens arising under notices of potential claims against 
209.7 	an individual's interests in real property in the individual's estate that are designated as 
209.8 	protected under subdivision 13, paragraph (b), shall be released to the extent of the dollar 
209.9 	value of the protection applied to the interest.
209.10 	(c) If an interest in real property is protected from a lien for recovery of medical 
209.11 	assistance paid on behalf of the individual under paragraph (a) or (b), no lien for recovery 
209.12 	of medical assistance paid on behalf of that individual shall be filed against the protected 
209.13 	interest in real property after it is distributed to the individual's heirs or devisees.
209.14 		Subd. 16.Burden of proof. Any individual or the personal representative of the 
209.15 	individual's estate who asserts that an asset is a disregarded or protected asset under 
209.16 	this section in connection with any determination of eligibility for benefits under the 
209.17 	medical assistance program or any appeal, case, controversy, or other proceedings, shall 
209.18 	have the initial burden of:
209.19 	(1) documenting and proving by clear and convincing evidence that the asset or 
209.20 	source of funds for the asset in question was designated as disregarded or protected;
209.21 	(2) tracing the asset and the proceeds of the asset from that time forward; and 
209.22 	(3) documenting that the asset or proceeds of the asset remained disregarded or 
209.23 	protected at all relevant times.

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

209.25 	Sec. 8. [256B.0594] PAYMENT OF BENEFITS FROM AN ANNUITY.
209.26 	When payment becomes due under an annuity that names the department a 
209.27 	remainder beneficiary as described in section 256B.056, subdivision 11, the issuer shall 
209.28 	pay the department an amount equal to the lesser of the amount due the department under 
209.29 	the annuity or the total amount of medical assistance paid on behalf of the individual 
209.30 	or the individual's spouse. The issuer shall request and the department shall provide a 
209.31 	written statement of the total amount of medical assistance paid. Any amounts remaining 
209.32 	after the issuer's payment to the department shall be payable according to the terms of 
209.33 	the annuity or similar financial instrument.

209.34 	Sec. 9. Minnesota Statutes 2004, section 256B.0595, subdivision 1, is amended to read:
210.1 		Subdivision 1.Prohibited transfers. (a) For transfers of assets made on or before 
210.2 	August 10, 1993, if a person or the person's spouse has given away, sold, or disposed of, 
210.3 	for less than fair market value, any asset or interest therein, except assets other than the 
210.4 	homestead that are excluded under the supplemental security program, within 30 months 
210.5 	before or any time after the date of institutionalization if the person has been determined 
210.6 	eligible for medical assistance, or within 30 months before or any time after the date of the 
210.7 	first approved application for medical assistance if the person has not yet been determined 
210.8 	eligible for medical assistance, the person is ineligible for long-term care services for the 
210.9 	period of time determined under subdivision 2.
210.10 	(b) Effective for transfers made after August 10, 1993, a person, a person's spouse, 
210.11 	or any person, court, or administrative body with legal authority to act in place of, on 
210.12 	behalf of, at the direction of, or upon the request of the person or person's spouse, may not 
210.13 	give away, sell, or dispose of, for less than fair market value, any asset or interest therein, 
210.14 	except assets other than the homestead that are excluded under the supplemental security 
210.15 	income program, for the purpose of establishing or maintaining medical assistance 
210.16 	eligibility. This applies to all transfers, including those made by a community spouse 
210.17 	after the month in which the institutionalized spouse is determined eligible for medical 
210.18 	assistance. For purposes of determining eligibility for long-term care services, any transfer 
210.19 	of such assets within 36 months before or any time after an institutionalized person applies 
210.20 	for medical assistance, or 36 months before or any time after a medical assistance recipient 
210.21 	becomes institutionalized, for less than fair market value may be considered. Any such 
210.22 	transfer is presumed to have been made for the purpose of establishing or maintaining 
210.23 	medical assistance eligibility and the person is ineligible for long-term care services for 
210.24 	the period of time determined under subdivision 2, unless the person furnishes convincing 
210.25 	evidence to establish that the transaction was exclusively for another purpose, or unless 
210.26 	the transfer is permitted under subdivision 3 or 4. Notwithstanding the provisions of this 
210.27 	paragraph,  In the case of payments from a trust or portions of a trust that are considered 
210.28 	transfers of assets under federal law, or in the case of any other disposal of assets made on 
210.29 	or after February 8, 2006, any transfers made within 60 months before or any time after an 
210.30 	institutionalized person applies for medical assistance and within 60 months before or any 
210.31 	time after a medical assistance recipient becomes institutionalized, may be considered.
210.32 	(c) This section applies to transfers, for less than fair market value, of income 
210.33 	or assets, including assets that are considered income in the month received, such as 
210.34 	inheritances, court settlements, and retroactive benefit payments or income to which the 
210.35 	person or the person's spouse is entitled but does not receive due to action by the person, 
210.36 	the person's spouse, or any person, court, or administrative body with legal authority 
211.1 	to act in place of, on behalf of, at the direction of, or upon the request of the person or 
211.2 	the person's spouse.
211.3 	(d) This section applies to payments for care or personal services provided by a 
211.4 	relative, unless the compensation was stipulated in a notarized, written agreement which 
211.5 	was in existence when the service was performed, the care or services directly benefited 
211.6 	the person, and the payments made represented reasonable compensation for the care 
211.7 	or services provided. A notarized written agreement is not required if payment for the 
211.8 	services was made within 60 days after the service was provided.
211.9 	(e) This section applies to the portion of any asset or interest that a person, a person's 
211.10 	spouse, or any person, court, or administrative body with legal authority to act in place of, 
211.11 	on behalf of, at the direction of, or upon the request of the person or the person's spouse, 
211.12 	transfers to any annuity that exceeds the value of the benefit likely to be returned to the 
211.13 	person or spouse while alive, based on estimated life expectancy using the life expectancy 
211.14 	tables employed by the supplemental security income program to determine the value 
211.15 	of an agreement for services for life. The commissioner may adopt rules reducing life 
211.16 	expectancies based on the need for long-term care. This section applies to an annuity 
211.17 	described in this paragraph purchased on or after March 1, 2002, that:
211.18 	(1) is not purchased from an insurance company or financial institution that is 
211.19 	subject to licensing or regulation by the Minnesota Department of Commerce or a similar 
211.20 	regulatory agency of another state;
211.21 	(2) does not pay out principal and interest in equal monthly installments; or
211.22 	(3) does not begin payment at the earliest possible date after annuitization.
211.23 	(f) Effective for transactions, including the purchase of an annuity, occurring on or 
211.24 	after February 8, 2006, the purchase of an annuity by or on behalf of an individual who 
211.25 	has applied for or is receiving long-term care services or the individual's spouse shall be 
211.26 	treated as the disposal of an asset for less than fair market value unless the department is 
211.27 	named as the remainder beneficiary in first position for an amount equal to at least the total 
211.28 	amount of medical assistance paid on behalf of the individual or the individual's spouse; 
211.29 	or the department is named as the remainder beneficiary in second position for an amount 
211.30 	equal to at least the total amount of medical assistance paid on behalf of the individual or 
211.31 	the individual's spouse after the individual's community spouse or minor or disabled child 
211.32 	and is named as the remainder beneficiary in the first position if the community spouse or 
211.33 	a representative of the minor or disabled child disposes of the remainder for less than fair 
211.34 	market value. Any subsequent change to the designation of the department as a remainder 
211.35 	beneficiary shall result in the annuity being treated as a disposal of assets for less than fair 
211.36 	market value. The amount of such transfer shall be the maximum amount the individual 
212.1 	or the individual's spouse could receive from the annuity or similar financial instrument. 
212.2 	Any change in the amount of the income or principal being withdrawn from the annuity 
212.3 	or other similar financial instrument at the time of the most recent disclosure shall be 
212.4 	deemed to be a transfer of assets for less than fair market value unless the individual or the 
212.5 	individual's spouse demonstrates that the transaction was for fair market value.
212.6 	(g) Effective for transactions, including the purchase of an annuity, occurring on 
212.7 	or after February 8, 2006, the purchase of an annuity by or on behalf of an individual 
212.8 	applying for or receiving long-term care services shall be treated as a disposal of assets for 
212.9 	less than fair market value unless the annuity is:
212.10 	(i) an annuity described in subsection (b) or (q) of section 408 of the Internal 
212.11 	Revenue Code of 1986; or 
212.12 	(ii) purchased with proceeds from:
212.13 	(A) an account or trust described in subsection (a), (c), or (p) of section 408 of the 
212.14 	Internal Revenue Code;
212.15 	(B) a simplified employee pension within the meaning of section 408(k) of the 
212.16 	Internal Revenue Code; or
212.17 	(C) a Roth IRA described in section 408A of the Internal Revenue Code; or
212.18 	(iii) an annuity that is irrevocable and nonassignable; is actuarially sound as 
212.19 	determined in accordance with actuarial publications of the Office of the Chief Actuary of 
212.20 	the Social Security Administration; and provides for payments in equal amounts during 
212.21 	the term of the annuity, with no deferral and no balloon payments made.
212.22 	(f) (h) For purposes of this section, long-term care services include services in a 
212.23 	nursing facility, services that are eligible for payment according to section  256B.0625, 
212.24 	subdivision 2, because they are provided in a swing bed, intermediate care facility for 
212.25 	persons with mental retardation, and home and community-based services provided 
212.26 	pursuant to sections  256B.0915,  256B.092, and  256B.49. For purposes of this subdivision 
212.27 	and subdivisions 2, 3, and 4, "institutionalized person" includes a person who is an 
212.28 	inpatient in a nursing facility or in a swing bed, or intermediate care facility for persons 
212.29 	with mental retardation or who is receiving home and community-based services under 
212.30 	sections  256B.0915,  256B.092, and  256B.49. 
212.31 	(i) This section applies to funds used to purchase a promissory note, loan, or 
212.32 	mortgage unless the note, loan, or mortgage:
212.33 	(1) has a repayment term that is actuarially sound;
212.34 	(2) provides for payments to be made in equal amounts during the term of the loan, 
212.35 	with no deferral and no balloon payments made; and
212.36 	(3) prohibits the cancellation of the balance upon the death of the lender.
213.1 	In the case of a promissory note, loan, or mortgage that does not meet an exception 
213.2 	in clauses (1) to (3), the value of the note, loan, or mortgage shall be the outstanding 
213.3 	balance due as of the date of the individual's application for long-term care services.
213.4 	(j) This section applies to the purchase of a life estate interest in another individual's 
213.5 	home unless the purchaser resides in the home for a period of at least one year after the 
213.6 	date of purchase.

213.7 	Sec. 10. Minnesota Statutes 2005 Supplement, section 256B.0595, subdivision 2, 
213.8 	is amended to read:
213.9 		Subd. 2.Period of ineligibility. (a) For any uncompensated transfer occurring on or 
213.10 	before August 10, 1993, the number of months of ineligibility for long-term care services 
213.11 	shall be the lesser of 30 months, or the uncompensated transfer amount divided by the 
213.12 	average medical assistance rate for nursing facility services in the state in effect on the 
213.13 	date of application. The amount used to calculate the average medical assistance payment 
213.14 	rate shall be adjusted each July 1 to reflect payment rates for the previous calendar year. 
213.15 	The period of ineligibility begins with the month in which the assets were transferred. 
213.16 	If the transfer was not reported to the local agency at the time of application, and the 
213.17 	applicant received long-term care services during what would have been the period of 
213.18 	ineligibility if the transfer had been reported, a cause of action exists against the transferee 
213.19 	for the cost of long-term care services provided during the period of ineligibility, or for the 
213.20 	uncompensated amount of the transfer, whichever is less. The action may be brought by 
213.21 	the state or the local agency responsible for providing medical assistance under chapter 
213.22 	256G. The uncompensated transfer amount is the fair market value of the asset at the time 
213.23 	it was given away, sold, or disposed of, less the amount of compensation received.
213.24 	(b) For uncompensated transfers made after August 10, 1993, the number of months 
213.25 	of ineligibility for long-term care services shall be the total uncompensated value of the 
213.26 	resources transferred divided by the average medical assistance rate for nursing facility 
213.27 	services in the state in effect on the date of application. The amount used to calculate the 
213.28 	average medical assistance payment rate shall be adjusted each July 1 to reflect payment 
213.29 	rates for the previous calendar year. The period of ineligibility begins with the first day 
213.30 	of the month after the month in which the assets were transferred except that if one or 
213.31 	more uncompensated transfers are made during a period of ineligibility, the total assets 
213.32 	transferred during the ineligibility period shall be combined and a penalty period calculated 
213.33 	to begin on the first day of the month after the month in which the first uncompensated 
213.34 	transfer was made. If the transfer was reported to the local agency after the date that 
213.35 	advance notice of a period of ineligibility that affects the next month could be provided to 
214.1 	the recipient and the recipient received medical assistance services or the transfer was not 
214.2 	reported to the local agency, and the applicant or recipient received medical assistance 
214.3 	services during what would have been the period of ineligibility if the transfer had been 
214.4 	reported, a cause of action exists against the transferee for the cost of medical assistance 
214.5 	services provided during the period of ineligibility, or for the uncompensated amount of 
214.6 	the transfer, whichever is less. The action may be brought by the state or the local agency 
214.7 	responsible for providing medical assistance under chapter 256G. The uncompensated 
214.8 	transfer amount is the fair market value of the asset at the time it was given away, sold, or 
214.9 	disposed of, less the amount of compensation received. Effective for transfers made on or 
214.10 	after March 1, 1996, involving persons who apply for medical assistance on or after April 
214.11 	13, 1996, no cause of action exists for a transfer unless:
214.12 	(1) the transferee knew or should have known that the transfer was being made by a 
214.13 	person who was a resident of a long-term care facility or was receiving that level of care in 
214.14 	the community at the time of the transfer;
214.15 	(2) the transferee knew or should have known that the transfer was being made to 
214.16 	assist the person to qualify for or retain medical assistance eligibility; or
214.17 	(3) the transferee actively solicited the transfer with intent to assist the person to 
214.18 	qualify for or retain eligibility for medical assistance.
214.19 	(c) For uncompensated transfers made on or after February 8, 2006, the period of 
214.20 	ineligibility begins on the first day of the month in which advance notice can be given 
214.21 	following the month in which assets have been transferred for less than fair market value, 
214.22 	or the date on which the individual is eligible for medical assistance under the Medicaid 
214.23 	state plan and would otherwise be receiving long-term care services based on an approved 
214.24 	application for such care but for the application of the penalty period, whichever is later, 
214.25 	and which does not occur during any other period of ineligibility.
214.26 	(d) If a calculation of a penalty period results in a partial month, payments for 
214.27 	long-term care services shall be reduced in an amount equal to the fraction., except that in 
214.28 	calculating the value of uncompensated transfers, if the total value of all uncompensated 
214.29 	transfers made in a month not included in an existing penalty period does not exceed $200, 
214.30 	then such transfers shall be disregarded for each month prior to the month of application 
214.31 	for or during receipt of medical assistance.
214.32 	(e) In the case of multiple fractional transfers of assets in more than one month for 
214.33 	less than fair market value on or after February 8, 2006, the period of ineligibility is 
214.34 	calculated by treating the total, cumulative uncompensated value of all assets transferred 
214.35 	during all months on or after February 8, 2006, as one transfer.

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

215.3 	Sec. 11. Minnesota Statutes 2004, section 256B.0595, subdivision 3, is amended to 
215.4 	read:
215.5 		Subd. 3.Homestead exception to transfer prohibition. (a) An institutionalized 
215.6 	person is not ineligible for long-term care services due to a transfer of assets for less than 
215.7 	fair market value if the asset transferred was a homestead and:
215.8 	(1) title to the homestead was transferred to the individual's:
215.9 	(i) spouse;
215.10 	(ii) child who is under age 21;
215.11 	(iii) blind or permanently and totally disabled child as defined in the supplemental 
215.12 	security income program;
215.13 	(iv) sibling who has equity interest in the home and who was residing in the home 
215.14 	for a period of at least one year immediately before the date of the individual's admission 
215.15 	to the facility; or
215.16 	(v) son or daughter who was residing in the individual's home for a period of at least 
215.17 	two years immediately before the date of the individual's admission to the facility, and who 
215.18 	provided care to the individual that, as certified by the individual's attending physician, 
215.19 	permitted the individual to reside at home rather than in an institution or facility;
215.20 	(2) a satisfactory showing is made that the individual intended to dispose of the 
215.21 	homestead at fair market value or for other valuable consideration; or
215.22 	(3) the local agency grants a waiver of a penalty resulting from a transfer for less 
215.23 	than fair market value because denial of eligibility would cause undue hardship for the 
215.24 	individual, based on imminent threat to the individual's health and well-being. Whenever 
215.25 	an applicant or recipient is denied eligibility because of a transfer for less than fair market 
215.26 	value, the local agency shall notify the applicant or recipient that the applicant or recipient 
215.27 	may request a waiver of the penalty if the denial of eligibility will cause undue hardship. 
215.28 	With the written consent of the individual or the personal representative of the individual, 
215.29 	a long-term care facility in which an individual is residing may file an undue hardship 
215.30 	waiver request, on behalf of the individual who is denied eligibility for long-term care 
215.31 	services on or after July 1, 2006, due to a period of ineligibility resulting from a transfer on 
215.32 	or after February 8, 2006. In evaluating a waiver, the local agency shall take into account 
215.33 	whether the individual was the victim of financial exploitation, whether the individual has 
215.34 	made reasonable efforts to recover the transferred property or resource, and other factors 
215.35 	relevant to a determination of hardship. If the local agency does not approve a hardship 
216.1 	waiver, the local agency shall issue a written notice to the individual stating the reasons 
216.2 	for the denial and the process for appealing the local agency's decision.
216.3 	(b) When a waiver is granted under paragraph (a), clause (3), a cause of action exists 
216.4 	against the person to whom the homestead was transferred for that portion of long-term 
216.5 	care services granted within:
216.6 	(1) 30 months of a transfer made on or before August 10, 1993;
216.7 	(2) 60 months if the homestead was transferred after August 10, 1993, to a trust or 
216.8 	portion of a trust that is considered a transfer of assets under federal law; or
216.9 	(3) 36 months if transferred in any other manner after August 10, 1993, but prior 
216.10 	to February 8, 2006; or
216.11 	(4) 60 months if the homestead was transferred on or after February 8, 2006,
216.12 	or the amount of the uncompensated transfer, whichever is less, together with the 
216.13 	costs incurred due to the action. The action shall be brought by the state unless the 
216.14 	state delegates this responsibility to the local agency responsible for providing medical 
216.15 	assistance under chapter 256G.

216.16 	Sec. 12. Minnesota Statutes 2004, section 256B.0595, subdivision 4, is amended to 
216.17 	read:
216.18 		Subd. 4.Other exceptions to transfer prohibition. An institutionalized person 
216.19 	who has made, or whose spouse has made a transfer prohibited by subdivision 1, is not 
216.20 	ineligible for long-term care services if one of the following conditions applies:
216.21 	(1) the assets were transferred to the individual's spouse or to another for the sole 
216.22 	benefit of the spouse; or
216.23 	(2) the institutionalized spouse, prior to being institutionalized, transferred assets 
216.24 	to a spouse, provided that the spouse to whom the assets were transferred does not then 
216.25 	transfer those assets to another person for less than fair market value. (At the time when 
216.26 	one spouse is institutionalized, assets must be allocated between the spouses as provided 
216.27 	under section 256B.059); or
216.28 	(3) the assets were transferred to the individual's child who is blind or permanently 
216.29 	and totally disabled as determined in the supplemental security income program; or
216.30 	(4) a satisfactory showing is made that the individual intended to dispose of the 
216.31 	assets either at fair market value or for other valuable consideration; or
216.32 	(5) the local agency determines that denial of eligibility for long-term care services 
216.33 	would work an undue hardship and grants a waiver of a penalty resulting from a transfer 
216.34 	for less than fair market value based on an imminent threat to the individual's health 
216.35 	and well-being. Whenever an applicant or recipient is denied eligibility because of a 
217.1 	transfer for less than fair market value, the local agency shall notify the applicant or 
217.2 	recipient that the applicant or recipient may request a waiver of the penalty if the denial of 
217.3 	eligibility will cause undue hardship. With the written consent of the individual or the 
217.4 	personal representative of the individual, a long-term care facility in which an individual 
217.5 	is residing may file an undue hardship waiver request, on behalf of the individual who 
217.6 	is denied eligibility for long-term care services on or after July 1, 2006, due to a period 
217.7 	of ineligibility resulting from a transfer on or after February 8, 2006. In evaluating a 
217.8 	waiver, the local agency shall take into account whether the individual was the victim of 
217.9 	financial exploitation, whether the individual has made reasonable efforts to recover the 
217.10 	transferred property or resource, whether the individual has taken any action to prevent 
217.11 	the designation of the department as a remainder beneficiary on an annuity as described 
217.12 	in section 256B.056, subdivision 11, and other factors relevant to a determination of 
217.13 	hardship. If the local agency does not approve a hardship waiver, the local agency shall 
217.14 	issue a written notice to the individual stating the reasons for the denial and the process for 
217.15 	appealing the local agency's decision. When a waiver is granted, a cause of action exists 
217.16 	against the person to whom the assets were transferred for that portion of long-term care 
217.17 	services granted within:
217.18 	(i) 30 months of a transfer made on or before August 10, 1993;
217.19 	(ii) 60 months of a transfer if the assets were transferred after August 30, 1993, to a 
217.20 	trust or portion of a trust that is considered a transfer of assets under federal law; or
217.21 	(iii) 36 months of a transfer if transferred in any other manner after August 10, 1993,
217.22 	but prior to February 8, 2006; or
217.23 	(iv) 60 months of any transfer made on or after February 8, 2006,
217.24 	or the amount of the uncompensated transfer, whichever is less, together with the 
217.25 	costs incurred due to the action. The action shall be brought by the state unless the 
217.26 	state delegates this responsibility to the local agency responsible for providing medical 
217.27 	assistance under this chapter; or
217.28 	(6) for transfers occurring after August 10, 1993, the assets were transferred by 
217.29 	the person or person's spouse: (i) into a trust established for the sole benefit of a son or 
217.30 	daughter of any age who is blind or disabled as defined by the Supplemental Security 
217.31 	Income program; or (ii) into a trust established for the sole benefit of an individual who is 
217.32 	under 65 years of age who is disabled as defined by the Supplemental Security Income 
217.33 	program.
217.34 	"For the sole benefit of" has the meaning found in section  256B.059, subdivision 1. 

218.1 	Sec. 13. Minnesota Statutes 2005 Supplement, section 256B.06, subdivision 4, is 
218.2 	amended to read:
218.3 		Subd. 4.Citizenship requirements. (a) Eligibility for medical assistance is limited 
218.4 	to citizens of the United States, qualified noncitizens as defined in this subdivision, and 
218.5 	other persons residing lawfully in the United States. Citizens or nationals of the United 
218.6 	States must cooperate in obtaining satisfactory documentary evidence of citizenship or 
218.7 	nationality as required by the federal Deficit Reduction Act of 2005, Public Law 109-171. 
218.8 	State and county workers must assist applicants in obtaining satisfactory documentary 
218.9 	evidence of citizenship or nationality.
218.10 	(b) "Qualified noncitizen" means a person who meets one of the following 
218.11 	immigration criteria:
218.12 	(1) admitted for lawful permanent residence according to United States Code, title 8;
218.13 	(2) admitted to the United States as a refugee according to United States Code, 
218.14 	title 8, section 1157;
218.15 	(3) granted asylum according to United States Code, title 8, section 1158;
218.16 	(4) granted withholding of deportation according to United States Code, title 8, 
218.17 	section 1253(h);
218.18 	(5) paroled for a period of at least one year according to United States Code, title 8, 
218.19 	section 1182(d)(5);
218.20 	(6) granted conditional entrant status according to United States Code, title 8, 
218.21 	section 1153(a)(7);
218.22 	(7) determined to be a battered noncitizen by the United States Attorney General 
218.23 	according to the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, 
218.24 	title V of the Omnibus Consolidated Appropriations Bill, Public Law 104-200;
218.25 	(8) is a child of a noncitizen determined to be a battered noncitizen by the United 
218.26 	States Attorney General according to the Illegal Immigration Reform and Immigrant 
218.27 	Responsibility Act of 1996, title V, of the Omnibus Consolidated Appropriations Bill, 
218.28 	Public Law 104-200; or
218.29 	(9) determined to be a Cuban or Haitian entrant as defined in section 501(e) of Public 
218.30 	Law 96-422, the Refugee Education Assistance Act of 1980.
218.31 	(c) All qualified noncitizens who were residing in the United States before August 
218.32 	22, 1996, who otherwise meet the eligibility requirements of this chapter, are eligible for 
218.33 	medical assistance with federal financial participation.
218.34 	(d) All qualified noncitizens who entered the United States on or after August 22, 
218.35 	1996, and who otherwise meet the eligibility requirements of this chapter, are eligible for 
218.36 	medical assistance with federal financial participation through November 30, 1996.
219.1 	Beginning December 1, 1996, qualified noncitizens who entered the United States 
219.2 	on or after August 22, 1996, and who otherwise meet the eligibility requirements of this 
219.3 	chapter are eligible for medical assistance with federal participation for five years if they 
219.4 	meet one of the following criteria:
219.5 	(i) refugees admitted to the United States according to United States Code, title 8, 
219.6 	section 1157;
219.7 	(ii) persons granted asylum according to United States Code, title 8, section 1158;
219.8 	(iii) persons granted withholding of deportation according to United States Code, 
219.9 	title 8, section 1253(h);
219.10 	(iv) veterans of the United States armed forces with an honorable discharge for 
219.11 	a reason other than noncitizen status, their spouses and unmarried minor dependent 
219.12 	children; or
219.13 	(v) persons on active duty in the United States armed forces, other than for training, 
219.14 	their spouses and unmarried minor dependent children.
219.15 	Beginning December 1, 1996, qualified noncitizens who do not meet one of the 
219.16 	criteria in items (i) to (v) are eligible for medical assistance without federal financial 
219.17 	participation as described in paragraph (j).
219.18 	(e) Noncitizens who are not qualified noncitizens as defined in paragraph (b), 
219.19 	who are lawfully residing in the United States and who otherwise meet the eligibility 
219.20 	requirements of this chapter, are eligible for medical assistance under clauses (1) to (3). 
219.21 	These individuals must cooperate with the Immigration and Naturalization Service to 
219.22 	pursue any applicable immigration status, including citizenship, that would qualify them 
219.23 	for medical assistance with federal financial participation.
219.24 	(1) Persons who were medical assistance recipients on August 22, 1996, are eligible 
219.25 	for medical assistance with federal financial participation through December 31, 1996.
219.26 	(2) Beginning January 1, 1997, persons described in clause (1) are eligible for 
219.27 	medical assistance without federal financial participation as described in paragraph (j).
219.28 	(3) Beginning December 1, 1996, persons residing in the United States prior to 
219.29 	August 22, 1996, who were not receiving medical assistance and persons who arrived on 
219.30 	or after August 22, 1996, are eligible for medical assistance without federal financial 
219.31 	participation as described in paragraph (j).
219.32 	(f) Nonimmigrants who otherwise meet the eligibility requirements of this chapter 
219.33 	are eligible for the benefits as provided in paragraphs (g) to (i). For purposes of this 
219.34 	subdivision, a "nonimmigrant" is a person in one of the classes listed in United States 
219.35 	Code, title 8, section 1101(a)(15).
220.1 	(g) Payment shall also be made for care and services that are furnished to noncitizens, 
220.2 	regardless of immigration status, who otherwise meet the eligibility requirements of 
220.3 	this chapter, if such care and services are necessary for the treatment of an emergency 
220.4 	medical condition, except for organ transplants and related care and services and routine 
220.5 	prenatal care.
220.6 	(h) For purposes of this subdivision, the term "emergency medical condition" means 
220.7 	a medical condition that meets the requirements of United States Code, title 42, section 
220.8 	1396b(v).
220.9 	(i) Pregnant noncitizens who are undocumented, nonimmigrants, or eligible for 
220.10 	medical assistance as described in paragraph (j), and who are not covered by a group 
220.11 	health plan or health insurance coverage according to Code of Federal Regulations, title 
220.12 	42, section 457.310, and who otherwise meet the eligibility requirements of this chapter, 
220.13 	are eligible for medical assistance through the period of pregnancy, including labor and 
220.14 	delivery, to the extent federal funds are available under title XXI of the Social Security 
220.15 	Act, and the state children's health insurance program, followed by 60 days postpartum 
220.16 	without federal financial participation.
220.17 	(j) Qualified noncitizens as described in paragraph (d), and all other noncitizens 
220.18 	lawfully residing in the United States as described in paragraph (e), who are ineligible 
220.19 	for medical assistance with federal financial participation and who otherwise meet the 
220.20 	eligibility requirements of chapter 256B and of this paragraph, are eligible for medical 
220.21 	assistance without federal financial participation. Qualified noncitizens as described 
220.22 	in paragraph (d) are only eligible for medical assistance without federal financial 
220.23 	participation for five years from their date of entry into the United States.
220.24 	(k) Beginning October 1, 2003, persons who are receiving care and rehabilitation 
220.25 	services from a nonprofit center established to serve victims of torture and are otherwise 
220.26 	ineligible for medical assistance under this chapter are eligible for medical assistance 
220.27 	without federal financial participation. These individuals are eligible only for the period 
220.28 	during which they are receiving services from the center. Individuals eligible under this 
220.29 	paragraph shall not be required to participate in prepaid medical assistance.

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

220.31 	Sec. 14. Minnesota Statutes 2005 Supplement, section 256B.0625, subdivision 1a, 
220.32 	is amended to read:
220.33 		Subd. 1a.Services provided in a hospital emergency room. Medical assistance 
220.34 	does not cover visits to a hospital emergency room that are not for emergency and 
220.35 	emergency poststabilization care or urgent care, and does not pay for any services provided 
221.1 	in a hospital emergency room that are not for emergency and emergency poststabilization 
221.2 	care or urgent care payment of a nonemergency emergency room facility component shall 
221.3 	be reduced to the payment level of the appropriate outpatient clinic facility component.

221.4 	Sec. 15.  REPEALER.
 221.5 	Minnesota Statutes 2005 Supplement, section 256B.0571, subdivisions 2, 5, and 
221.6 	11, are repealed.

221.7 	ARTICLE 21
221.8 	QUALIFIED LONG-TERM CARE INSURANCE REGULATORY CHANGES

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

221.14 	Sec. 2. Minnesota Statutes 2004, section 62S.08, subdivision 3, is amended to read:
221.15 		Subd. 3.Mandatory format. The following standard format outline of coverage 
221.16 	must be used, unless otherwise specifically indicated:
221.17 	COMPANY NAME
221.18 	ADDRESS - CITY AND STATE
221.19 	TELEPHONE NUMBER
221.20 	LONG-TERM CARE INSURANCE
221.21 	OUTLINE OF COVERAGE
221.22 	Policy Number or Group Master Policy and Certificate Number
221.23 	(Except for policies or certificates which are guaranteed issue, the following caution 
221.24 	statement, or language substantially similar, must appear as follows in the outline of 
221.25 	coverage.)
221.26 	CAUTION: The issuance of this long-term care insurance (policy) (certificate) 
221.27 	is based upon your responses to the questions on your application. A copy of your 
221.28 	(application) (enrollment form) (is enclosed) (was retained by you when you applied). 
221.29 	If your answers are incorrect or untrue, the company has the right to deny benefits or 
221.30 	rescind your policy. The best time to clear up any questions is now, before a claim 
221.31 	arises. If, for any reason, any of your answers are incorrect, contact the company at this 
221.32 	address: (insert address).
221.33 	(1) This policy is (an individual policy of insurance) (a group policy) which was 
221.34 	issued in the (indicate jurisdiction in which group policy was issued).
222.1 	(2) PURPOSE OF OUTLINE OF COVERAGE. This outline of coverage provides 
222.2 	a very brief description of the important features of the policy. You should compare 
222.3 	this outline of coverage to outlines of coverage for other policies available to you. This 
222.4 	is not an insurance contract, but only a summary of coverage. Only the individual or 
222.5 	group policy contains governing contractual provisions. This means that the policy or 
222.6 	group policy sets forth in detail the rights and obligations of both you and the insurance 
222.7 	company. Therefore, if you purchase this coverage, or any other coverage, it is important 
222.8 	that you READ YOUR POLICY (OR CERTIFICATE) CAREFULLY.
222.9 	(3) THIS PLAN IS INTENDED TO BE A QUALIFIED LONG-TERM CARE 
222.10 	INSURANCE CONTRACT AS DEFINED UNDER SECTION 7702(B)(b) OF THE 
222.11 	INTERNAL REVENUE CODE OF 1986.
222.12 	(4) TERMS UNDER WHICH THE POLICY OR CERTIFICATE MAY BE 
222.13 	CONTINUED IN FORCE OR DISCONTINUED.
222.14 	(a) (For long-term care health insurance policies or certificates describe one of the 
222.15 	following permissible policy renewability provisions:
222.16 	(1) Policies and certificates that are guaranteed renewable shall contain the following 
222.17 	statement:) RENEWABILITY: THIS POLICY (CERTIFICATE) IS GUARANTEED 
222.18 	RENEWABLE. This means you have the right, subject to the terms of your policy, 
222.19 	(certificate) to continue this policy as long as you pay your premiums on time. (Company 
222.20 	name) cannot change any of the terms of your policy on its own, except that, in the future, 
222.21 	IT MAY INCREASE THE PREMIUM YOU PAY.
222.22 	(2) (Policies and certificates that are noncancelable shall contain the following 
222.23 	statement:) RENEWABILITY: THIS POLICY (CERTIFICATE) IS NONCANCELABLE. 
222.24 	This means that you have the right, subject to the terms of your policy, to continue this 
222.25 	policy as long as you pay your premiums on time. (Company name) cannot change any 
222.26 	of the terms of your policy on its own and cannot change the premium you currently 
222.27 	pay. However, if your policy contains an inflation protection feature where you choose 
222.28 	to increase your benefits, (company name) may increase your premium at that time for 
222.29 	those additional benefits.
222.30 	(b) (For group coverage, specifically describe continuation/conversion provisions 
222.31 	applicable to the certificate and group policy.)
222.32 	(c) (Describe waiver of premium provisions or state that there are not such 
222.33 	provisions.)
222.34 	(5) TERMS UNDER WHICH THE COMPANY MAY CHANGE PREMIUMS. 
222.35 	(In bold type larger than the maximum type required to be used for the other 
222.36 	provisions of the outline of coverage, state whether or not the company has a right to 
223.1 	change the premium and, if a right exists, describe clearly and concisely each circumstance 
223.2 	under which the premium may change.)
223.3 	(6) TERMS UNDER WHICH THE POLICY OR CERTIFICATE MAY BE 
223.4 	RETURNED AND PREMIUM REFUNDED.
223.5 	(a) (Provide a brief description of the right to return -- "free look" provision of 
223.6 	the policy.)
223.7 	(b) (Include a statement that the policy either does or does not contain provisions 
223.8 	providing for a refund or partial refund of premium upon the death of an insured or 
223.9 	surrender of the policy or certificate. If the policy contains such provisions, include a 
223.10 	description of them.)
223.11 	(5)(7) THIS IS NOT MEDICARE SUPPLEMENT COVERAGE. If you are 
223.12 	eligible for Medicare, review the Medicare Supplement Buyer's Guide available from 
223.13 	the insurance company.
223.14 	(a) (For agents) neither (insert company name) nor its agents represent Medicare, the 
223.15 	federal government, or any state government.
223.16 	(b) (For direct response) (insert company name) is not representing Medicare, the 
223.17 	federal government, or any state government.
223.18 	(6)(8) LONG-TERM CARE COVERAGE. Policies of this category are designed to 
223.19 	provide coverage for one or more necessary or medically necessary diagnostic, preventive, 
223.20 	therapeutic, rehabilitative, maintenance, or personal care services, provided in a setting 
223.21 	other than an acute care unit of a hospital, such as in a nursing home, in the community, 
223.22 	or in the home.
223.23 	This policy provides coverage in the form of a fixed dollar indemnity benefit for 
223.24 	covered long-term care expenses, subject to policy (limitations), (waiting periods), and 
223.25 	(coinsurance) requirements. (Modify this paragraph if the policy is not an indemnity 
223.26 	policy.)
223.27 	(7)(9) BENEFITS PROVIDED BY THIS POLICY.
223.28 	(a) (Covered services, related deductible(s), waiting periods, elimination periods, 
223.29 	and benefit maximums.)
223.30 	(b) (Institutional benefits, by skill level.)
223.31 	(c) (Noninstitutional benefits, by skill level.)
223.32 	(d) (Eligibility for payment of benefits.)
223.33 	(Activities of daily living and cognitive impairment shall be used to measure an 
223.34 	insured's need for long-term care and must be defined and described as part of the outline 
223.35 	of coverage.)
224.1 	(Any benefit screens must be explained in this section. If these screens differ for 
224.2 	different benefits, explanation of the screen should accompany each benefit description. If 
224.3 	an attending physician or other specified person must certify a certain level of functional 
224.4 	dependency in order to be eligible for benefits, this too must be specified. If activities of 
224.5 	daily living (ADLs) are used to measure an insured's need for long-term care, then these 
224.6 	qualifying criteria or screens must be explained.)
224.7 	(8)(10) LIMITATIONS AND EXCLUSIONS:
224.8 	Describe:
224.9 	(a) preexisting conditions;
224.10 	(b) noneligible facilities/provider;
224.11 	(c) noneligible levels of care (e.g., unlicensed providers, care or treatment provided 
224.12 	by a family member, etc.);
224.13 	(d) exclusions/exceptions; and
224.14 	(e) limitations.
224.15 	(This section should provide a brief specific description of any policy provisions 
224.16 	which limit, exclude, restrict, reduce, delay, or in any other manner operate to qualify 
224.17 	payment of the benefits described in paragraph (6) (8).)
224.18 	THIS POLICY MAY NOT COVER ALL THE EXPENSES ASSOCIATED WITH 
224.19 	YOUR LONG-TERM CARE NEEDS.
224.20 	(9)(11) RELATIONSHIP OF COST OF CARE AND BENEFITS. Because the costs 
224.21 	of long-term care services will likely increase over time, you should consider whether and 
224.22 	how the benefits of this plan may be adjusted. As applicable, indicate the following:
224.23 	(a) that the benefit level will not increase over time;
224.24 	(b) any automatic benefit adjustment provisions;
224.25 	(c) whether the insured will be guaranteed the option to buy additional benefits and 
224.26 	the basis upon which benefits will be increased over time if not by a specified amount 
224.27 	or percentage;
224.28 	(d) if there is such a guarantee, include whether additional underwriting or health 
224.29 	screening will be required, the frequency and amounts of the upgrade options, and any 
224.30 	significant restrictions or limitations; and
224.31 	(e) whether there will be any additional premium charge imposed and how that 
224.32 	is to be calculated.
224.33 	(10)(12) ALZHEIMER'S DISEASE AND OTHER ORGANIC BRAIN 
224.34 	DISORDERS. (State that the policy provides coverage for insureds clinically diagnosed as 
224.35 	having Alzheimer's disease or related degenerative and dementing illnesses. Specifically, 
225.1 	describe each benefit screen or other policy provision which provides preconditions to the 
225.2 	availability of policy benefits for such an insured.)
225.3 	(11)(13) PREMIUM.
225.4 	(a) State the total annual premium for the policy.
225.5 	(b) If the premium varies with an applicant's choice among benefit options, indicate 
225.6 	the portion of annual premium which corresponds to each benefit option.
225.7 	(12)(14) ADDITIONAL FEATURES.
225.8 	(a) Indicate if medical underwriting is used.
225.9 	(b) Describe other important features.
225.10 	(15) CONTACT THE STATE DEPARTMENT OF COMMERCE OR SENIOR 
225.11 	LINKAGE LINE IF YOU HAVE GENERAL QUESTIONS REGARDING LONG-TERM 
225.12 	CARE INSURANCE. CONTACT THE INSURANCE COMPANY IF YOU HAVE 
225.13 	SPECIFIC QUESTIONS REGARDING YOUR LONG-TERM CARE INSURANCE 
225.14 	POLICY OR CERTIFICATE.

225.15 	Sec. 3. Minnesota Statutes 2004, section 62S.081, subdivision 4, is amended to read:
225.16 		Subd. 4.Forms. An insurer shall use the forms in Appendices B (Personal 
225.17 	Worksheet) and F (Potential Rate Increase Disclosure Form) of the Long-term Care 
225.18 	Insurance Model Regulation adopted by the National Association of Insurance 
225.19 	Commissioners to comply with the requirements of subdivisions 1 and 2.

225.20 	Sec. 4. Minnesota Statutes 2004, section 62S.10, subdivision 2, is amended to read:
225.21 		Subd. 2.Contents. The summary must include the following information:
225.22 	(1) an explanation of how the long-term care benefit interacts with other components 
225.23 	of the policy, including deductions from death benefits;
225.24 	(2) an illustration of the amount of benefits, the length of benefits, and the guaranteed 
225.25 	lifetime benefits, if any, for each covered person; and
225.26 	(3) any exclusions, reductions, and limitations on benefits of long-term care; and
225.27 	(4) a statement that any long-term care inflation protection option required by section 
225.28 	62S.23 is not available under this policy. 

225.29 	Sec. 5. Minnesota Statutes 2004, section 62S.13, is amended by adding a subdivision 
225.30 	to read:
225.31 		Subd. 6.Death of insured. In the event of the death of the insured, this section shall 
225.32 	not apply to the remaining death benefit of a life insurance policy that accelerates benefits 
225.33 	for long-term care. In this situation, the remaining death benefits under these policies shall 
226.1 	be governed by section 61A.03, subdivision 1, paragraph (c). In all other situations, this 
226.2 	section shall apply to life insurance policies that accelerate benefits for long-term care.

226.3 	Sec. 6. Minnesota Statutes 2004, section 62S.14, subdivision 2, is amended to read:
226.4 		Subd. 2.Terms. The terms "guaranteed renewable" and "noncancelable" may not 
226.5 	be used in an individual long-term care insurance policy without further explanatory 
226.6 	language that complies with the disclosure requirements of section  62S.20. The term 
226.7 	"level premium" may only be used when the insurer does not have the right to change 
226.8 	the premium.

226.9 	Sec. 7. Minnesota Statutes 2004, section 62S.15, is amended to read:
226.10 	62S.15 AUTHORIZED LIMITATIONS AND EXCLUSIONS.
226.11 	No policy may be delivered or issued for delivery in this state as long-term care 
226.12 	insurance if the policy limits or excludes coverage by type of illness, treatment, medical 
226.13 	condition, or accident, except as follows:
226.14 	(1) preexisting conditions or diseases;
226.15 	(2) mental or nervous disorders; except that the exclusion or limitation of benefits on 
226.16 	the basis of Alzheimer's disease is prohibited;
226.17 	(3) alcoholism and drug addiction;
226.18 	(4) illness, treatment, or medical condition arising out of war or act of war; 
226.19 	participation in a felony, riot, or insurrection; service in the armed forces or auxiliary 
226.20 	units; suicide, attempted suicide, or intentionally self-inflicted injury; or non-fare-paying 
226.21 	aviation; and
226.22 	(5) treatment provided in a government facility unless otherwise required by 
226.23 	law, services for which benefits are available under Medicare or other government 
226.24 	program except Medicaid, state or federal workers' compensation, employer's liability 
226.25 	or occupational disease law, motor vehicle no-fault law; services provided by a member 
226.26 	of the covered person's immediate family; and services for which no charge is normally 
226.27 	made in the absence of insurance; and
226.28 	(6) expenses for services or items available or paid under another long-term care 
226.29 	insurance or health insurance policy.
226.30 	This subdivision does not prohibit exclusions and limitations by type of provider or 
226.31 	territorial limitations.

226.32 	Sec. 8. Minnesota Statutes 2004, section 62S.20, subdivision 1, is amended to read:
227.1 		Subdivision 1.Renewability. (a) Individual long-term care insurance policies 
227.2 	must contain a renewability provision that is appropriately captioned, appears on the first 
227.3 	page of the policy, and clearly states the duration, where limited, of renewability and the 
227.4 	duration of the term of coverage for which the policy is issued and for which it may be 
227.5 	renewed that the coverage is guaranteed renewable or noncancelable. This subdivision 
227.6 	does not apply to policies which are part of or combined with life insurance policies 
227.7 	which do not contain a renewability provision and under which the right to nonrenew is 
227.8 	reserved solely to the policyholder.
227.9 	(b) A long-term care insurance policy or certificate, other than one where the insurer 
227.10 	does not have the right to change the premium, shall include a statement that premium 
227.11 	rates may change.

227.12 	Sec. 9. Minnesota Statutes 2004, section 62S.24, subdivision 1, is amended to read:
227.13 		Subdivision 1.Required questions. An application form must include the following 
227.14 	questions designed to elicit information as to whether, as of the date of the application, the 
227.15 	applicant has another long-term care insurance policy or certificate in force or whether a 
227.16 	long-term care policy or certificate is intended to replace any other accident and sickness 
227.17 	or long-term care policy or certificate presently in force. A supplementary application 
227.18 	or other form to be signed by the applicant and agent, except where the coverage is sold 
227.19 	without an agent, containing the following questions may be used. If a replacement policy 
227.20 	is issued to a group as defined under section   62S.01, subdivision 15, clause (1), the 
227.21 	following questions may be modified only to the extent necessary to elicit information 
227.22 	about long-term care insurance policies other than the group policy being replaced; 
227.23 	provided, however, that the certificate holder has been notified of the replacement: 
227.24 	(1)  do you have another long-term care insurance policy or certificate in force
227.25 	(including health care service contract or health maintenance organization contract)?;
227.26 	(2) did you have another long-term care insurance policy or certificate in force 
227.27 	during the last 12 months?;
227.28 	(i) if so, with which company?; and
227.29 	(ii) if that policy lapsed, when did it lapse?; and
227.30 	(3) are you covered by Medicaid?; and 
227.31 	(4) do you intend to replace any of your medical or health insurance coverage with 
227.32 	this policy (certificate)?

227.33 	Sec. 10. Minnesota Statutes 2004, section 62S.24, is amended by adding a subdivision 
227.34 	to read:
228.1 		Subd. 1a.Other health insurance policies sold by agent. Agents shall list all other 
228.2 	health insurance policies they have sold to the applicant that are still in force or were sold 
228.3 	in the past five years and are no longer in force.

228.4 	Sec. 11. Minnesota Statutes 2004, section 62S.24, subdivision 3, is amended to read:
228.5 		Subd. 3.Solicitations other than direct response. After determining that a 
228.6 	sale will involve replacement, an insurer, other than an insurer using direct response 
228.7 	solicitation methods or its agent, shall furnish the applicant, before issuance or delivery of 
228.8 	the individual long-term care insurance policy, a notice regarding replacement of accident 
228.9 	and sickness or long-term care coverage. One copy of the notice must be retained by the 
228.10 	applicant and an additional copy signed by the applicant must be retained by the insurer. 
228.11 	The required notice must be provided in the following manner:
228.12 	NOTICE TO APPLICANT REGARDING REPLACEMENT OF
228.13 	INDIVIDUAL ACCIDENT AND SICKNESS OR LONG-TERM 
228.14 	CARE INSURANCE
228.15 	(Insurance company's name and address)
228.16 	SAVE THIS NOTICE! IT MAY BE IMPORTANT TO YOU IN THE FUTURE.
228.17 	According to (your application) (information you have furnished), you intend to 
228.18 	lapse or otherwise terminate existing accident and sickness or long-term care insurance 
228.19 	and replace it with an individual long-term care insurance policy to be issued by (company 
228.20 	name) insurance company. Your new policy provides 30 days within which you may 
228.21 	decide, without cost, whether you desire to keep the policy. For your own information and 
228.22 	protection, you should be aware of and seriously consider certain factors which may affect 
228.23 	the insurance protection available to you under the new policy.
228.24 	You should review this new coverage carefully, comparing it with all accident 
228.25 	and sickness or long-term care insurance coverage you now have, and terminate your 
228.26 	present policy only if, after due consideration, you find that purchase of this long-term 
228.27 	care coverage is a wise decision.
228.28 	STATEMENT TO APPLICANT BY AGENT
228.29 	(BROKER OR OTHER REPRESENTATIVE):
228.30 	(Use additional sheets, as necessary.)
228.31 	I have reviewed your current medical health insurance coverage. I believe the 
228.32 	replacement of insurance involved in this transaction materially improves your position. 
228.33 	My conclusion has taken into account the following considerations, which I call to your 
228.34 	attention:
228.35 	(a) Health conditions which you presently have (preexisting conditions) may not 
228.36 	be immediately or fully covered under the new policy. This could result in denial or 
229.1 	delay in payment of benefits under the new policy, whereas a similar claim might have 
229.2 	been payable under your present policy.
229.3 	(b) State law provides that your replacement policy or certificate may not contain 
229.4 	new preexisting conditions or probationary periods. The insurer will waive any time 
229.5 	periods applicable to preexisting conditions or probationary periods in the new policy (or 
229.6 	coverage) for similar benefits to the extent such time was spent (depleted) under the 
229.7 	original policy.
229.8 	(c)  If you are replacing existing long-term care insurance coverage, you may wish to 
229.9 	secure the advice of your present insurer or its agent regarding the proposed replacement of 
229.10 	your present policy. This is not only your right, but it is also in your best interest to make 
229.11 	sure you understand all the relevant factors involved in replacing your present coverage.
229.12 	(d)  If, after due consideration, you still wish to terminate your present policy and 
229.13 	replace it with new coverage, be certain to truthfully and completely answer all questions 
229.14 	on the application concerning your medical health history. Failure to include all material 
229.15 	medical information on an application may provide a basis for the company to deny any 
229.16 	future claims and to refund your premium as though your policy had never been in force. 
229.17 	After the application has been completed and before you sign it, reread it carefully to be 
229.18 	certain that all information has been properly recorded.
229.19 	........
229.20 	(Signature of Agent, Broker, or Other Representative)
229.21 	(Typed Name and Address of Agency or Broker)
229.22 	The  above "Notice to Applicant" was delivered to me on:

229.23		........
	
229.24		(Date)
	
229.25		........
	
229.26		(Applicant's Signature)

229.27 	Sec. 12. Minnesota Statutes 2004, section 62S.24, subdivision 4, is amended to read:
229.28 		Subd. 4.Direct response solicitations. Insurers using direct response solicitation 
229.29 	methods shall deliver a notice regarding replacement of long-term care coverage to 
229.30 	the applicant upon issuance of the policy. The required notice must be provided in the 
229.31 	following manner:
229.32 	NOTICE TO APPLICANT REGARDING REPLACEMENT OF ACCIDENT 
229.33 	AND SICKNESS OR LONG-TERM CARE INSURANCE
229.34 	(Insurance  company's name and address)
229.35 	SAVE THIS NOTICE! IT MAY BE
229.36 	IMPORTANT TO YOU IN THE FUTURE.
230.1 	According to (your application) (information you have furnished), you intend to 
230.2 	lapse or otherwise terminate existing accident and sickness or long-term care insurance 
230.3 	and replace it with the long-term care insurance policy delivered herewith issued by 
230.4 	(company name) insurance company.
230.5 	Your new policy provides 30 days within which you may decide, without cost, 
230.6 	whether you desire to keep the policy. For your own information and protection, you 
230.7 	should be aware of and seriously consider certain factors which may affect the insurance 
230.8 	protection available to you under the new policy.
230.9 	You should review this new coverage carefully, comparing it with all long-term care 
230.10 	insurance coverage you now have, and terminate your present policy only if, after due 
230.11 	consideration, you find that purchase of this long-term care coverage is a wise decision.
230.12 	(a) Health conditions which you presently have (preexisting conditions) may not 
230.13 	be immediately or fully covered under the new policy. This could result in denial or 
230.14 	delay in payment of benefits under the new policy, whereas a similar claim might have 
230.15 	been payable under your present policy.
230.16 	(b) State law provides that your replacement policy or certificate may not contain 
230.17 	new preexisting conditions or probationary periods. Your insurer will waive any time 
230.18 	periods applicable to preexisting conditions or probationary periods in the new policy (or 
230.19 	coverage) for similar benefits to the extent such time was spent (depleted) under the 
230.20 	original policy.
230.21 	(c) If you are replacing existing long-term care insurance coverage, you may wish to 
230.22 	secure the advice of your present insurer or its agent regarding the proposed replacement of 
230.23 	your present policy. This is not only your right, but it is also in your best interest to make 
230.24 	sure you understand all the relevant factors involved in replacing your present coverage.
230.25 	(d) (To be included only if the application is attached to the policy.)
230.26 	If,  after due consideration, you still wish to terminate your present policy and replace 
230.27 	it with new coverage, read the copy of the application attached to your new policy and be 
230.28 	sure that all questions are answered fully and correctly. Omissions or misstatements in 
230.29 	the application could cause an otherwise valid claim to be denied. Carefully check the 
230.30 	application and write to (company name and address) within 30 days if any information is 
230.31 	not correct and complete, or if any past medical history has been left out of the application.

230.32		........
	
230.33		(Company Name)

230.34 	Sec. 13. Minnesota Statutes 2004, section 62S.24, is amended by adding a subdivision 
230.35 	to read:
231.1 		Subd. 7.Life insurance policies. Life insurance policies that accelerate benefits for 
231.2 	long-term care shall comply with this section if the policy being replaced is a long-term 
231.3 	care insurance policy. If the policy being replaced is a life insurance policy, the insurer 
231.4 	shall comply with the replacement requirements of sections 61A.53 to 61A.60. If a 
231.5 	life insurance policy that accelerates benefits for long-term care is replaced by another 
231.6 	such policy, the replacing insurer shall comply with both the long-term care and the life 
231.7 	insurance replacement requirements.

231.8 	Sec. 14. Minnesota Statutes 2004, section 62S.25, subdivision 6, is amended to read:
231.9 		Subd. 6.Claims denied. Each insurer shall report annually by June 30 the number 
231.10 	of claims denied for any reason during the reporting period for each class of business, 
231.11 	expressed as a percentage of claims denied, other than claims denied for failure to meet 
231.12 	the waiting period or because of any applicable preexisting condition. For purposes of 
231.13 	this subdivision, "claim" means a request for payment of benefits under an in-force policy 
231.14 	regardless of whether the benefit claimed is covered under the policy or any terms or 
231.15 	conditions of the policy have been met.

231.16 	Sec. 15. Minnesota Statutes 2004, section 62S.25, is amended by adding a subdivision 
231.17 	to read:
231.18 		Subd. 7.Reports.  Reports under this section shall be done on a statewide basis and 
231.19 	filed with the commissioner. They shall include, at a minimum, the information in the 
231.20 	format contained in Appendix E (Claim Denial Reporting Form) and in Appendix G 
231.21 	(Replacement and Lapse Reporting Form) of the Long-Term Care Model Regulation 
231.22 	adopted by the National Association of Insurance Commissioners.

231.23 	Sec. 16. Minnesota Statutes 2004, section 62S.26, is amended to read:
231.24 	62S.26 LOSS RATIO.
231.25 		Subdivision 1.Minimum loss ratio. (a) The minimum loss ratio must be at least 60 
231.26 	percent, calculated in a manner which provides for adequate reserving of the long-term 
231.27 	care insurance risk. In evaluating the expected loss ratio, the commissioner shall give 
231.28 	consideration to all relevant factors, including:
231.29 	(1) statistical credibility of incurred claims experience and earned premiums;
231.30 	(2) the period for which rates are computed to provide coverage;
231.31 	(3) experienced and projected trends;
231.32 	(4) concentration of experience within early policy duration;
231.33 	(5) expected claim fluctuation;
232.1 	(6) experience refunds, adjustments, or dividends;
232.2 	(7) renewability features;
232.3 	(8) all appropriate expense factors;
232.4 	(9) interest;
232.5 	(10) experimental nature of the coverage;
232.6 	(11) policy reserves;
232.7 	(12) mix of business by risk classification; and
232.8 	(13) product features such as long elimination periods, high deductibles, and high 
232.9 	maximum limits.
232.10 		Subd. 2.Life insurance policies. Subdivision 1 shall not apply to life insurance 
232.11 	policies that accelerate benefits for long-term care. A life insurance policy that funds 
232.12 	long-term care benefits entirely by accelerating the death benefit is considered to provide 
232.13 	reasonable benefits in relation to premiums paid, if the policy complies with all of the 
232.14 	following provisions:
232.15 	(1) the interest credited internally to determine cash value accumulations, including 
232.16 	long-term care, if any, are guaranteed not to be less than the minimum guaranteed interest 
232.17 	rate for cash value accumulations without long-term care set forth in the policy;
232.18 	(2) the portion of the policy that provides life insurance benefits meets the 
232.19 	nonforfeiture requirements of section 61A.24;
232.20 	(3) the policy meets the disclosure requirements of sections 62S.09, 62S.10, and 
232.21 	62S.11; and 
232.22 	(4) an actuarial memorandum is filed with the commissioner that includes:
232.23 	(i) a description of the basis on which the long-term care rates were determined;
232.24 	(ii) a description of the basis for the reserves;
232.25 	(iii) a summary of the type of policy, benefits, renewability, general marketing 
232.26 	method, and limits on ages of issuance;
232.27 	(iv) a description and a table of each actuarial assumption used. For expenses, 
232.28 	an insurer must include percentage of premium dollars per policy and dollars per unit 
232.29 	of benefits, if any;
232.30 	(v) a description and a table of the anticipated policy reserves and additional reserves 
232.31 	to be held in each future year for active lives;
232.32 	(vi) the estimated average annual premium per policy and the average issue age; 
232.33 	(vii) a statement as to whether underwriting is performed at the time of application. 
232.34 	The statement shall indicate whether underwriting is used and, if used, the statement 
232.35 	shall include a description of the type or types of underwriting used, such as medical 
232.36 	underwriting or functional assessment underwriting. Concerning a group policy, the 
233.1 	statement shall indicate whether the enrollee or any dependent will be underwritten and 
233.2 	when underwriting occurs; and
233.3 	(viii) a description of the effect of the long-term care policy provision on the required 
233.4 	premiums, nonforfeiture values, and reserves on the underlying life insurance policy, both 
233.5 	for active lives and those in long-term care claim status.
233.6 		Subd. 3.Nonapplication.  (b) This section does not apply to policies or certificates 
233.7 	that are subject to sections  62S.021,  62S.081, and  62S.265, and that comply with those 
233.8 	sections. 

233.9 	Sec. 17. Minnesota Statutes 2004, section 62S.266, subdivision 2, is amended to read:
233.10 		Subd. 2.Requirement. (a) An insurer must offer each prospective policyholder a 
233.11 	nonforfeiture benefit in compliance with the following requirements:
233.12 	(1) a policy or certificate offered with nonforfeiture benefits must have coverage 
233.13 	elements, eligibility, benefit triggers, and benefit length that are the same as coverage to be 
233.14 	issued without nonforfeiture benefits. The nonforfeiture benefit included in the offer must 
233.15 	be the benefit described in subdivision 5; and
233.16 	(2)  the offer must be in writing if the nonforfeiture benefit is not otherwise described 
233.17 	in the outline of coverage or other materials given to the prospective policyholder.
233.18 	(b) When a group long-term care insurance policy is issued, the offer required in 
233.19 	paragraph (a) shall be made to the group policy holder. However, if the policy is issued as 
233.20 	group long-term care insurance as defined in section 62S.01, subdivision 15, clause (4), 
233.21 	other than to a continuing care retirement community or other similar entity, the offering 
233.22 	shall be made to each proposed certificate holder. 

233.23 	Sec. 18. Minnesota Statutes 2004, section 62S.29, subdivision 1, is amended to read:
233.24 		Subdivision 1.Requirements. An insurer or other entity marketing long-term care 
233.25 	insurance coverage in this state, directly or through its producers, shall:
233.26 	(1) establish marketing procedures and agent training requirements to assure that a
233.27 	any marketing activities, including any comparison of policies by its agents or other 
233.28 	producers, are fair and accurate;
233.29 	(2) establish marketing procedures to assure excessive insurance is not sold or issued;
233.30 	(3) display prominently by type, stamp, or other appropriate means, on the first page 
233.31 	of the outline of coverage and policy, the following:
233.32 	"Notice to buyer: This policy may not cover all of the costs associated with 
233.33 	long-term care incurred by the buyer during the period of coverage. The buyer is advised 
233.34 	to review carefully all policy limitations.";
234.1 	(4) provide copies of the disclosure forms required in section 62S.081, subdivision 
234.2 	4, to the applicant;
234.3 	(5) inquire and otherwise make every reasonable effort to identify whether a 
234.4 	prospective applicant or enrollee for long-term care insurance already has long-term care 
234.5 	insurance and the types and amounts of the insurance;
234.6 	(5)(6) establish auditable procedures for verifying compliance with this subdivision; 
234.7 	and
234.8 	(6)(7) if applicable, provide written notice to the prospective policyholder and 
234.9 	certificate holder, at solicitation, that a senior insurance counseling program approved 
234.10 	by the commissioner is available and the name, address, and telephone number of the 
234.11 	program;
234.12 	(8) use the terms "noncancelable" or "level premium" only when the policy or 
234.13 	certificate conforms to section 62S.14; and
234.14 	(9) provide an explanation of contingent benefit upon lapse provided for in section 
234.15 	62S.266.

234.16 	Sec. 19. Minnesota Statutes 2004, section 62S.30, is amended to read:
234.17 	62S.30 APPROPRIATENESS OF RECOMMENDED PURCHASE
234.18 	SUITABILITY.
234.19 	In recommending the purchase or replacement of a long-term care insurance policy 
234.20 	or certificate, an agent shall comply with section  60K.46, subdivision 4. 
234.21 		Subdivision 1.Standards. Every insurer or other entity marketing long-term care 
234.22 	insurance shall:
234.23 	(1) develop and use suitability standards to determine whether the purchase or 
234.24 	replacement of long-term care insurance is appropriate for the needs of the applicant; 
234.25 	(2) train its agents in the use of its suitability standards; and 
234.26 	(3) maintain a copy of its suitability standards and make them available for 
234.27 	inspection upon request by the commissioner.
234.28 		Subd. 2.Procedures. (a) To determine whether the applicant meets the standards 
234.29 	developed by the insurer or other entity marketing long-term care insurance, the agent 
234.30 	and insurer or other entity marketing long-term care insurance shall develop procedures 
234.31 	that take the following into consideration:
234.32 	(1) the ability to pay for the proposed coverage and other pertinent financial 
234.33 	information related to the purchase of the coverage;
234.34 	(2) the applicant's goals or needs with respect to long-term care and the advantages 
234.35 	and disadvantages of insurance to meet those goals or needs; and 
235.1 	(3) the values, benefits, and costs of the applicant's existing insurance, if any, when 
235.2 	compared to the values, benefits, and costs of the recommended purchase or replacement.
235.3 	(b) The insurer or other entity marketing long-term care insurance, and the agent, 
235.4 	where an agent is involved, shall make reasonable efforts to obtain the information set 
235.5 	forth in paragraph (a). The efforts shall include presentation to the applicant, at or prior 
235.6 	to application, of the "Long-Term Care Insurance Personal Worksheet." The personal 
235.7 	worksheet used by the insurer or other entity marketing long-term care insurance shall 
235.8 	contain, at a minimum, the information in the format contained in Appendix B of the 
235.9 	Long-Term Care Model Regulation adopted by the National Association of Insurance 
235.10 	Commissioners in not less than 12-point type. The insurer or other entity marketing 
235.11 	long-term care insurance may request the applicant to provide additional information to 
235.12 	comply with its suitability standards. The insurer or other entity marketing long-term care 
235.13 	insurance shall file a copy of its personal worksheet with the commissioner.
235.14 	(c) A completed personal worksheet shall be returned to the insurer or other entity 
235.15 	marketing long-term care insurance prior to consideration of the applicant for coverage, 
235.16 	except the personal worksheet need not be returned for sales of employer group long-term 
235.17 	care insurance to employees and their spouses. The sale or dissemination by the insurer 
235.18 	or other entity marketing long-term care insurance, or the agent, of information obtained 
235.19 	through the personal worksheet is prohibited.
235.20 	(d) The insurer or other entity marketing long-term care insurance shall use the 
235.21 	suitability standards it has developed under this section in determining whether issuing 
235.22 	long-term care insurance coverage to an applicant is appropriate. Agents shall use the 
235.23 	suitability standards developed by the insurer or other entity marketing long-term care 
235.24 	insurance in marketing long-term care insurance.
235.25 	(e) At the same time as the personal worksheet is provided to the applicant, the 
235.26 	disclosure form entitled "Things You Should Know Before You Buy Long-Term Care 
235.27 	Insurance" shall be provided. The form shall be in the format contained in Appendix C of 
235.28 	the Long-Term Care Insurance Model Regulation adopted by the National Association of 
235.29 	Insurance Commissioners in not less than 12-point type.
235.30 	(f) If the insurer or other entity marketing long-term care insurance determines 
235.31 	that the applicant does not meet its financial suitability standards, or if the applicant has 
235.32 	declined to provide the information, the insurer or other entity marketing long-term 
235.33 	care insurance may reject the application. In the alternative, the insurer or other entity 
235.34 	marketing long-term care insurance shall send the applicant a letter similar to Appendix D 
235.35 	of the Long-Term Care Insurance Model Regulation adopted by the National Association 
235.36 	of Insurance Commissioners. However, if the applicant has declined to provide financial 
236.1 	information, the insurer or other entity marketing long-term care insurance may use some 
236.2 	other method to verify the applicant's intent. The applicant's returned letter or a record of 
236.3 	the alternative method of verification shall be made part of the applicant's file.
236.4 		Subd. 3.Reports. The insurer or other entity marketing long-term care insurance 
236.5 	shall report annually to the commissioner the total number of applications received from 
236.6 	residents of this state, the number of those who declined to provide information on the 
236.7 	personal worksheet, the number of applicants who did not meet the suitability standards, 
236.8 	and the number of those who chose to confirm after receiving a suitability letter.
236.9 		Subd. 4.Application. This section shall not apply to life insurance policies that 
236.10 	accelerate benefits for long-term care.

236.11 	Sec. 20. [62S.315] PRODUCER TRAINING.
236.12 	The commissioner shall approve insurer and producer training requirements 
236.13 	according to the NAIC Long-Term Care Insurance Model Act provisions. The 
236.14 	commissioner of human services shall provide technical assistance and information to the 
236.15 	commissioner according to Public Law 109-171, section 6021.

236.16 	ARTICLE 22
236.17 	CHILDREN AND FAMILIES PROGRAMS AND SERVICES

236.18 	Section 1. Minnesota Statutes 2004, section 119B.011, is amended by adding a 
236.19 	subdivision to read:
236.20 		Subd. 23.Work participation rate enhancement program. "Work participation 
236.21 	rate enhancement program" means the program established under section 256J.575.

236.22 	Sec. 2. Minnesota Statutes 2004, section 119B.05, subdivision 1, is amended to read:
236.23 		Subdivision 1.Eligible participants. Families eligible for child care assistance 
236.24 	under the MFIP child care program are:
236.25 	(1) MFIP participants who are employed or in job search and meet the requirements 
236.26 	of section  119B.10; 
236.27 	(2) persons who are members of transition year families under section  119B.011, 
236.28 	subdivision 20, and meet the requirements of section  119B.10; 
236.29 	(3) families who are participating in employment orientation or job search, or 
236.30 	other employment or training activities that are included in an approved employability 
236.31 	development plan under section  256J.95; 
237.1 	(4) MFIP families who are participating in work job search, job support, 
237.2 	employment, or training activities as required in their employment plan, or in appeals, 
237.3 	hearings, assessments, or orientations according to chapter 256J;
237.4 	(5) MFIP families who are participating in social services activities under chapter 
237.5 	256J as required in their employment plan approved according to chapter 256J;
237.6 	(6) families who are participating in services or activities that are included in an 
237.7 	approved family stabilization plan under section 256J.575;
237.8 	(7) families who are participating in programs as required in tribal contracts under 
237.9 	section  119B.02, subdivision 2, or  256.01, subdivision 2; and 
237.10 	(7) (8) families who are participating in the transition year extension under section  
237.11 	119B.011, subdivision 20a. 

237.12 	Sec. 3. Minnesota Statutes 2005 Supplement, section 119B.13, subdivision 1, is 
237.13 	amended to read:
237.14 		Subdivision 1.Subsidy restrictions. (a)(i) Effective July 1, 2005, the commissioner 
237.15 	of human services shall modify the rate tables for child care centers published in 
237.16 	Department of Human Services Bulletin No. 03-68-07 so that in counties with regional or 
237.17 	statewide cells, the higher of the 100th percentile of the 2002 market rate survey data or 
237.18 	the rate currently identified in the bulletin will be the maximum rate. The rates established 
237.19 	in this clause will be considered as the previous year's rates for purposes of the increase in 
237.20 	item (iii), and shall be compared to the 100th percentile of current market rates.
237.21 	(ii) For the period between July 1, 2005, and through the full implementation of the 
237.22 	new rates under item (iii), the rates published in Department of Human Services Bulletin 
237.23 	No. 03-68-07 as adjusted by item (i) shall remain in effect.
237.24 	(iii) (a) Beginning JanuaryJuly 1, 2006, the maximum rate paid for child care 
237.25 	assistance in any county or multicounty region under the child care fund shall be the
237.26 	lesser of the
237.27 	 75th percentile rate for like-care arrangements in the county or multicounty region 
237.28 	as surveyed by the commissioner or the previous year's rate for like-care arrangements in 
237.29 	the county increased by 1.75 percentexcept that in counties where the maximum rate is 
237.30 	set at the 100th percentile on January 1, 2006, as published in Policy Bulletin 05-68-15, 
237.31 	the maximum rate shall continue to be set at the 100th percentile.
237.32 	(iv) (b) Rate changes shall be implemented for services provided in March 
237.33 	 September 2006 unless a participant eligibility redetermination or a new provider 
237.34 	agreement is completed between JanuaryJuly 1, 2006, and February 28 August 31, 2006.
238.1 	As necessary, appropriate notice of adverse action must be made according to 
238.2 	Minnesota Rules, part 3400.0185, subparts 3 and 4.
238.3 	New cases approved on or after JanuaryJuly 1, 2006, shall have the maximum rates 
238.4 	under item (iii)paragraph (a) implemented immediately.
238.5 	(b)(c) Not less than once every two years, the commissioner shall survey rates 
238.6 	charged by child care providers in Minnesota to determine the 75th percentile for 
238.7 	like-care arrangements in counties. When the commissioner determines that, using the 
238.8 	commissioner's established protocol, the number of providers responding to the survey is 
238.9 	too small to determine the 75th percentile rate for like-care arrangements in a county or 
238.10 	multicounty region, the commissioner may establish the 75th percentile maximum rate 
238.11 	based on like-care arrangements in a county, region, or category that the commissioner 
238.12 	deems to be similar.
238.13 	(c)(d) A rate which includes a special needs rate paid under subdivision 3 may be in 
238.14 	excess of the maximum rate allowed under this subdivision.
238.15 	(d)(e) The department shall monitor the effect of this paragraph on provider rates. 
238.16 	The county shall pay the provider's full charges for every child in care up to the maximum 
238.17 	established. The commissioner shall determine the maximum rate for each type of care on 
238.18 	an hourly, full-day, and weekly basis, including special needs and handicapped care. The 
238.19 	commissioner shall also determine the maximum rate for school age care on a half-day 
238.20 	basis.
238.21 	(e)(f) When the provider charge is greater than the maximum provider rate allowed, 
238.22 	the parent is responsible for payment of the difference in the rates in addition to any 
238.23 	family co-payment fee.

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

238.25 	Sec. 4. Minnesota Statutes 2004, section 119B.13, is amended by adding a subdivision 
238.26 	to read:
238.27 		Subd. 3a.Provider rate differential for accreditation. A family child care 
238.28 	provider or child care center shall be paid a 15 percent differential above the maximum rate 
238.29 	established in subdivision 1, up to the actual provider rate, if the provider or center holds a 
238.30 	current early childhood development credential or is accredited.  For a family child care 
238.31 	provider, early childhood development credential and accreditation includes an individual 
238.32 	who has earned a child development associate degree, a diploma in child development from 
238.33 	a Minnesota state technical college, or a bachelor's degree in early childhood education 
238.34 	from an accredited college or university, or who is accredited by the National Association 
238.35 	for Family Child Care or the Competency Based Training and Assessment Program.  For a 
239.1 	child care center, accreditation includes accreditation by the National Association for the 
239.2 	Education of Young Children, the Council on Accreditation, the National Early Childhood 
239.3 	Program Accreditation, the National School-Age Care Association, or the National Head 
239.4 	Start Association Program of Excellence.  For Montessori programs, accreditation includes 
239.5 	the American Montessori Society, Association of Montessori International-USA, or the 
239.6 	National Center for Montessori Education.

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

239.8 	Sec. 5. [256.029] DOMESTIC VIOLENCE INFORMATIONAL BROCHURE.
239.9 	(a) The commissioner shall provide a domestic violence informational brochure 
239.10 	that provides information about the existence of domestic violence waivers for eligible 
239.11 	public assistance applicants to all general assistance, general assistance medical care, 
239.12 	MFIP, medical assistance, and MinnesotaCare. The brochure must explain that eligible 
239.13 	applicants may be temporarily waived from certain program requirements due to domestic 
239.14 	violence. The brochure must provide information about services and other programs to 
239.15 	help victims of domestic violence.
239.16 	(b) The brochure must be funded with TANF funds.

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

239.18 	Sec. 6. [256D.0515] ASSET LIMITATIONS FOR FOOD STAMP HOUSEHOLDS.
239.19 	All food stamp households must be determined eligible for the benefit discussed 
239.20 	under section 256.029. Food stamp households must demonstrate that:
239.21 	(1) their gross income meets the federal food stamp requirements under United 
239.22 	States Code, title 7, section 2014(c); and
239.23 	(2) they have financial resources, excluding vehicles, of less than $7,000.

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

239.25 	Sec. 7. Minnesota Statutes 2004, section 256J.01, is amended by adding a subdivision 
239.26 	to read:
239.27 		Subd. 6.Legislative approval to move programs or activities. The commissioner 
239.28 	shall not move programs or activities funded with MFIP or TANF maintenance of effort 
239.29 	funds to other funding sources unless specifically approved by law.

239.30 	Sec. 8. Minnesota Statutes 2004, section 256J.02, subdivision 1, is amended to read:
240.1 		Subdivision 1.Commissioner's authority to administer block grant funds. The 
240.2 	commissioner of human services is authorized to receive, and administer, and expend
240.3 	funds available under the TANF block grant authorized under title I of Public Law 
240.4 	104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.
240.5 	Notwithstanding section 4.07, the commissioner shall not spend TANF funds, except 
240.6 	pursuant to a direct appropriation enacted by the legislature.

240.7 	Sec. 9. Minnesota Statutes 2004, section 256J.021, is amended to read:
240.8 	256J.021 SEPARATE STATE PROGRAM FOR USE OF STATE MONEY
240.9 	PROGRAMS.
240.10 	(a) BeginningUntil October 1, 2001 2006, and each year thereafter, the 
240.11 	commissioner of human services must treat MFIP expenditures made to or on behalf of 
240.12 	any minor child under section  256J.02, subdivision 2, clause (1), who is a resident of 
240.13 	this state under section  256J.12, and who is part of a two-parent eligible household as 
240.14 	expenditures under a separately funded state program and report those expenditures to the 
240.15 	federal Department of Health and Human Services as separate state program expenditures 
240.16 	under Code of Federal Regulations, title 45, section 263.5. 
240.17 	(b) Beginning October 1, 2006, the commissioner of human services must treat 
240.18 	MFIP expenditures made to or on behalf of any minor child under section 256J.02, 
240.19 	subdivision 2, clause (1), who is a resident of this state under section 256J.12, and who is 
240.20 	part of a two-parent eligible household as expenditures under a separately funded state 
240.21 	program. These expenditures shall not count toward the state's maintenance of effort 
240.22 	(MOE) requirements under the federal TANF program except if counting certain families 
240.23 	would allow the commissioner to avoid a federal penalty. Families receiving assistance 
240.24 	under this section must comply with all applicable requirements in chapter 256J.
240.25 	(c) Beginning October 1, 2006, and each year thereafter, the commissioner of 
240.26 	human services must treat MFIP expenditures made to or on behalf of any minor child 
240.27 	under section 256J.02, subdivision 2, clause (1), who is a resident of this state under 
240.28 	section 256J.12, and who is part of a household participating in the work participation rate 
240.29 	enhancement program under section 256J.575, as expenditures under a program funded 
240.30 	with state nonmaintenance of effort funds. These expenditures shall not count toward the 
240.31 	state's MOE requirements under the federal TANF program, except if counting certain 
240.32 	families would allow the commissioner to avoid a federal penalty. Families receiving 
240.33 	assistance under this section must comply with all applicable requirements in chapter 256J.

240.34 	Sec. 10. Minnesota Statutes 2004, section 256J.08, subdivision 65, is amended to read:
241.1 		Subd. 65.Participant. "Participant" means a person who is currently receiving cash 
241.2 	assistance or the food portion available through MFIP. A person who fails to withdraw 
241.3 	or access electronically any portion of the person's cash and food assistance payment by 
241.4 	the end of the payment month, who makes a written request for closure before the first 
241.5 	of a payment month and repays cash and food assistance electronically issued for that 
241.6 	payment month within that payment month, or who returns any uncashed assistance 
241.7 	check and food coupons and withdraws from the program is not a participant. A person 
241.8 	who withdraws a cash or food assistance payment by electronic transfer or receives and 
241.9 	cashes an MFIP assistance check or food coupons and is subsequently determined to be 
241.10 	ineligible for assistance for that period of time is a participant, regardless whether that 
241.11 	assistance is repaid. The term "participant" includes the caregiver relative and the minor 
241.12 	child whose needs are included in the assistance payment. A person in an assistance unit 
241.13 	who does not receive a cash and food assistance payment because the case has been 
241.14 	suspended from MFIP is a participant. A person who receives cash payments under the 
241.15 	diversionary work program under section  256J.95 is a participant. A person who receives 
241.16 	cash payments under the work participation rate enhancement program under section 
241.17 	256J.575 is a participant.

241.18 	Sec. 11. Minnesota Statutes 2004, section 256J.37, subdivision 3a, is amended to read:
241.19 		Subd. 3a.Rental subsidies; unearned income. (a) Effective July 1, 2003, the 
241.20 	county agency shall count $50 of the value of public and assisted rental subsidies provided 
241.21 	through the Department of Housing and Urban Development (HUD) as unearned income 
241.22 	to the cash portion of the MFIP grant. The full amount of the subsidy must be counted as 
241.23 	unearned income when the subsidy is less than $50. The income from this subsidy shall 
241.24 	be budgeted according to section  256J.34. 
241.25 	(b) The provisions of this subdivision shall not apply to an MFIP assistance unit 
241.26 	which includes a participant who is:
241.27 	(1) age 60 or older;
241.28 	(2) a caregiver who is suffering from an illness, injury, or incapacity that has been 
241.29 	certified by a qualified professional when the illness, injury, or incapacity is expected 
241.30 	to continue for more than 30 days and prevents the person from obtaining or retaining 
241.31 	employment; or
241.32 	(3) a caregiver whose presence in the home is required due to the illness or 
241.33 	incapacity of another member in the assistance unit, a relative in the household, or a foster 
241.34 	child in the household when the illness or incapacity and the need for the participant's 
242.1 	presence in the home has been certified by a qualified professional and is expected to 
242.2 	continue for more than 30 days.
242.3 	(c) The provisions of this subdivision shall not apply to an MFIP assistance unit 
242.4 	where the parental caregiver is an SSI recipient.
242.5 	(d) Prior to implementing this provision, the commissioner must identify the MFIP 
242.6 	participants subject to this provision and provide written notice to these participants at 
242.7 	least 30 days before the first grant reduction. The notice must inform the participant of the 
242.8 	basis for the potential grant reduction, the exceptions to the provision, if any, and inform 
242.9 	the participant of the steps necessary to claim an exception. A person who is found not to 
242.10 	meet one of the exceptions to the provision must be notified and informed of the right to a 
242.11 	fair hearing under section  256J.40. The notice must also inform the participant that the 
242.12 	participant may be eligible for a rent reduction resulting from a reduction in the MFIP 
242.13 	grant and encourage the participant to contact the local housing authority. 
242.14 	(e) This subdivision is suspended from July 1, 2006, through June 30, 2007.

242.15 	Sec. 12. Minnesota Statutes 2004, section 256J.521, subdivision 1, is amended to read:
242.16 		Subdivision 1.Assessments. (a) For purposes of MFIP employment services, 
242.17 	assessment is a continuing process of gathering information related to employability for 
242.18 	the purpose of identifying both participant's strengths and strategies for coping with 
242.19 	issues that interfere with employment. The job counselor must use information from the 
242.20 	assessment process to develop and update the employment plan under subdivision 2 or 3, 
242.21 	as appropriate, and to determine whether the participant qualifies for a family violence 
242.22 	waiver including an employment plan under subdivision 3, and to determine whether 
242.23 	the participant should be referred to the work participation rate enhancement program 
242.24 	under section 256J.575.
242.25 	(b) The scope of assessment must cover at least the following areas:
242.26 	(1) basic information about the participant's ability to obtain and retain employment, 
242.27 	including: a review of the participant's education level; interests, skills, and abilities; prior 
242.28 	employment or work experience; transferable work skills; child care and transportation 
242.29 	needs;
242.30 	(2) identification of personal and family circumstances that impact the participant's 
242.31 	ability to obtain and retain employment, including: any special needs of the children, the 
242.32 	level of English proficiency, family violence issues, and any involvement with social 
242.33 	services or the legal system;
242.34 	(3) the results of a mental and chemical health screening tool designed by the 
242.35 	commissioner and results of the brief screening tool for special learning needs. Screening 
243.1 	tools for mental and chemical health and special learning needs must be approved by the 
243.2 	commissioner and may only be administered by job counselors or county staff trained in 
243.3 	using such screening tools. The commissioner shall work with county agencies to develop 
243.4 	protocols for referrals and follow-up actions after screens are administered to participants, 
243.5 	including guidance on how employment plans may be modified based upon outcomes 
243.6 	of certain screens. Participants must be told of the purpose of the screens and how the 
243.7 	information will be used to assist the participant in identifying and overcoming barriers to 
243.8 	employment. Screening for mental and chemical health and special learning needs must 
243.9 	be completed by participants who are unable to find suitable employment after six weeks 
243.10 	of job search under subdivision 2, paragraph (b), and participants who are determined to 
243.11 	have barriers to employment under subdivision 2, paragraph (d). Failure to complete the 
243.12 	screens will result in sanction under section  256J.46; and 
243.13 	(4) a comprehensive review of participation and progress for participants who have 
243.14 	received MFIP assistance and have not worked in unsubsidized employment during 
243.15 	the past 12 months. The purpose of the review is to determine the need for additional 
243.16 	services and supports, including placement in subsidized employment or unpaid work 
243.17 	experience under section  256J.49, subdivision 13, or referral to the work participation rate 
243.18 	enhancement program under section 256J.575. 
243.19 	(c) Information gathered during a caregiver's participation in the diversionary work 
243.20 	program under section  256J.95 must be incorporated into the assessment process. 
243.21 	(d) The job counselor may require the participant to complete a professional chemical 
243.22 	use assessment to be performed according to the rules adopted under section  254A.03, 
243.23 	subdivision 3, including provisions in the administrative rules which recognize the cultural 
243.24 	background of the participant, or a professional psychological assessment as a component 
243.25 	of the assessment process, when the job counselor has a reasonable belief, based on 
243.26 	objective evidence, that a participant's ability to obtain and retain suitable employment 
243.27 	is impaired by a medical condition. The job counselor may assist the participant with 
243.28 	arranging services, including child care assistance and transportation, necessary to meet 
243.29 	needs identified by the assessment. Data gathered as part of a professional assessment 
243.30 	must be classified and disclosed according to the provisions in section  13.46. 

243.31 	Sec. 13. Minnesota Statutes 2004, section 256J.521, subdivision 2, is amended to read:
243.32 		Subd. 2.Employment plan; contents. (a) Based on the assessment under 
243.33 	subdivision 1, the job counselor and the participant must develop an employment plan 
243.34 	that includes participation in activities and hours that meet the requirements of section  
243.35 	256J.55, subdivision 1. The purpose of the employment plan is to identify for each 
244.1 	participant the most direct path to unsubsidized employment and any subsequent steps that 
244.2 	support long-term economic stability. The employment plan should be developed using 
244.3 	the highest level of activity appropriate for the participant. Activities must be chosen from 
244.4 	clauses (1) to (6), which are listed in order of preference. Notwithstanding this order of 
244.5 	preference for activities, priority must be given for activities related to a family violence 
244.6 	waiver when developing the employment plan. The employment plan must also list the 
244.7 	specific steps the participant will take to obtain employment, including steps necessary 
244.8 	for the participant to progress from one level of activity to another, and a timetable for 
244.9 	completion of each step. Levels of activity include: 
244.10 	(1) unsubsidized employment;
244.11 	(2) job search;
244.12 	(3) subsidized employment or unpaid work experience;
244.13 	(4) unsubsidized employment and job readiness education or job skills training;
244.14 	(5) unsubsidized employment or unpaid work experience and activities related to 
244.15 	a family violence waiver or preemployment needs; and
244.16 	(6) activities related to a family violence waiver or preemployment needs.
244.17 	(b) Participants who are determined to possess sufficient skills such that the 
244.18 	participant is likely to succeed in obtaining unsubsidized employment must job search at 
244.19 	least 30 hours per week for up to six weeks and accept any offer of suitable employment. 
244.20 	The remaining hours necessary to meet the requirements of section  256J.55, subdivision 
244.21 	1, may be met through participation in other work activities under section  256J.49, 
244.22 	subdivision 13. The participant's employment plan must specify, at a minimum: (1) 
244.23 	whether the job search is supervised or unsupervised; (2) support services that will 
244.24 	be provided; and (3) how frequently the participant must report to the job counselor. 
244.25 	Participants who are unable to find suitable employment after six weeks must meet 
244.26 	with the job counselor to determine whether other activities in paragraph (a) should be 
244.27 	incorporated into the employment plan. Job search activities which are continued after six 
244.28 	weeks must be structured and supervised. 
244.29 	(c) Beginning July 1, 2004, activities and hourly requirements in the employment 
244.30 	plan may be adjusted as necessary to accommodate the personal and family circumstances 
244.31 	of participants identified under section  256J.561, subdivision 2, paragraph (d). Participants 
244.32 	who no longer meet the provisions of section  256J.561, subdivision 2, paragraph (d), 
244.33 	must meet with the job counselor within ten days of the determination to revise the 
244.34 	employment plan. 
244.35 	(d) Participants who are determined to have barriers to obtaining or retaining 
244.36 	employment that will not be overcome during six weeks of job search under paragraph (b) 
245.1 	must work with the job counselor to develop an employment plan that addresses those 
245.2 	barriers by incorporating appropriate activities from paragraph (a), clauses (1) to (6). The 
245.3 	employment plan must include enough hours to meet the participation requirements in 
245.4 	section  256J.55, subdivision 1, unless a compelling reason to require fewer hours is noted 
245.5 	in the participant's file. 
245.6 	(e) The job counselor and the participant must sign the employment plan to indicate 
245.7 	agreement on the contents. Failure to develop or comply with activities in the plan, or 
245.8 	voluntarily quitting suitable employment without good cause, will result in the imposition 
245.9 	of a sanction under section  256J.46. 
245.10 	(f) Employment plans must be reviewed at least every three months to determine 
245.11 	whether activities and hourly requirements should be revised. The job counselor is 
245.12 	encouraged to allow participants who are participating in at least 20 hours of work 
245.13 	activities to also participate in employment and training activities in order to meet the 
245.14 	federal hourly participation rates.

245.15 	Sec. 14. Minnesota Statutes 2004, section 256J.53, subdivision 2, is amended to read:
245.16 		Subd. 2.Approval of postsecondary education or training. (a) In order for a 
245.17 	postsecondary education or training program to be an approved activity in an employment 
245.18 	plan, the participant must be working in unsubsidized employment at least 20 hours per 
245.19 	week.
245.20 	(b) (a) Participants seeking approval of a postsecondary education or training plan 
245.21 	must provide documentation that:
245.22 	(1) the employment goal can only be met with the additional education or training;
245.23 	(2) there are suitable employment opportunities that require the specific education or 
245.24 	training in the area in which the participant resides or is willing to reside;
245.25 	(3) the education or training will result in significantly higher wages for the 
245.26 	participant than the participant could earn without the education or training;
245.27 	(4) the participant can meet the requirements for admission into the program; and
245.28 	(5) there is a reasonable expectation that the participant will complete the training 
245.29 	program based on such factors as the participant's MFIP assessment, previous education, 
245.30 	training, and work history; current motivation; and changes in previous circumstances.
245.31 	(c) (b) The hourly unsubsidized employment requirement does not apply for 
245.32 	intensive education or training programs lasting 12 weeks or less when full-time 
245.33 	attendance is required.
245.34 	(d) (c) Participants with an approved employment plan in place on July 1, 2003, 
245.35 	which includes more than 12 months of postsecondary education or training shall be 
246.1 	allowed to complete that plan provided that hourly requirements in section  256J.55, 
246.2 	subdivision 1, and conditions specified in paragraph (b) (a), and subdivisions 3 and 5 are 
246.3 	met. A participant whose case is subsequently closed for three months or less for reasons 
246.4 	other than noncompliance with program requirements and who returns to MFIP shall 
246.5 	be allowed to complete that plan provided that hourly requirements in section  256J.55, 
246.6 	subdivision 1, and conditions specified in paragraph (b) (a) and subdivisions 3 and 5 are 
246.7 	met. 

246.8 	Sec. 15. Minnesota Statutes 2004, section 256J.53, is amended by adding a subdivision 
246.9 	to read:
246.10 		Subd. 2a.Employment while attending postsecondary education. For the first 
246.11 	12 months of education, the participant may work, but there is no work requirement. 
246.12 	For the subsequent 12 months of education, the participant must work in unsubsidized 
246.13 	employment at least 20 hours per week.

246.14 	Sec. 16. [256J.575] WORK PARTICIPATION RATE ENHANCEMENT 
246.15 	PROGRAM.
246.16 		Subdivision 1.Purpose. (a) The work participation rate enhancement program 
246.17 	(WORK PREP) is Minnesota's cash assistance program to serve families who are not 
246.18 	making significant progress within MFIP due to a variety of barriers to employment.
246.19 	(b) The goal of this program is to stabilize and improve the lives of families at risk 
246.20 	of long-term welfare dependency or family instability due to employment barriers such as 
246.21 	physical disability, mental disability, age, and caring for a disabled household member. 
246.22 	WORK PREP provides services to promote and support families to achieve the greatest 
246.23 	possible degree of self-sufficiency.
246.24 		Subd. 2.Definitions. The terms used in this section have the meanings given them 
246.25 	in paragraphs (a) to (d).
246.26 	(a) The "work participation rate enhancement program" means the WORK PREP 
246.27 	program established under this section.
246.28 	(b) "Case management" means the services provided by or through the county agency 
246.29 	to participating families, including assessment, information, referrals, and assistance in the 
246.30 	preparation and implementation of a family stabilization plan under subdivision 5.
246.31 	(c) "Family stabilization plan" means a plan developed by a case manager and 
246.32 	the participant, which identifies the participant's most appropriate path to unsubsidized 
246.33 	employment, family stability, and barrier reduction, taking into account the family's 
246.34 	circumstances.
247.1 	(d) "Family stabilization services" means programs, activities, and services in this 
247.2 	section that provide participants and their family members with assistance regarding, 
247.3 	but not limited to:
247.4 	(1) obtaining and retaining unsubsidized employment;
247.5 	(2) family stability;
247.6 	(3) economic stability; and
247.7 	(4) barrier reduction.
247.8 	The goal of the program is to achieve the greatest degree of economic self-sufficiency 
247.9 	and family well-being possible for the family under the circumstances.
247.10 		Subd. 3.Eligibility. (a) The following MFIP or diversionary work program (DWP) 
247.11 	participants are eligible for the program under this section:
247.12 	(1) a participant identified under section 256J.561, subdivision 2, paragraph (d), who 
247.13 	has or is eligible for an employment plan developed under section 256J.521, subdivision 
247.14 	2, paragraph (c);
247.15 	(2) a participant identified under section 256J.95, subdivision 12, paragraph (b), as 
247.16 	unlikely to benefit from the diversionary work program;
247.17 	(3) a participant who meets the requirements for or has been granted a hardship 
247.18 	extension under section 256J.425, subdivision 2 or 3; and
247.19 	(4) a participant who is applying for supplemental security income or Social Security 
247.20 	disability insurance.
247.21 	(b) Families must meet all other eligibility requirements for MFIP established in 
247.22 	this chapter. Families are eligible for financial assistance to the same extent as if they 
247.23 	were participating in MFIP.
247.24 		Subd. 4.Universal participation. All caregivers must participate in family 
247.25 	stabilization services as defined in subdivision 2.
247.26 		Subd. 5.Case management; family stabilization plans; coordinated services. (a) 
247.27 	The county agency shall provide family stabilization services to families through a case 
247.28 	management model. A case manager shall be assigned to each participating family within 
247.29 	30 days after the family begins to receive financial assistance as a participant of the work 
247.30 	participation rate enhancement program. The case manager, with the full involvement 
247.31 	of the family, shall recommend, and the county agency shall establish and modify as 
247.32 	necessary, a family stabilization plan for each participating family.
247.33 	(b) The family stabilization plan shall include:
247.34 	(1) each participant's plan for long-term self-sufficiency, including an employment 
247.35 	goal where applicable;
248.1 	(2) an assessment of each participant's strengths and barriers, and any special 
248.2 	circumstances of the participant's family that impact, or are likely to impact, the 
248.3 	participant's progress towards the goals in the plan; and
248.4 	(3) an identification of the services, supports, education, training, and 
248.5 	accommodations needed to overcome any barriers to enable the family to achieve 
248.6 	self-sufficiency and to fulfill each caregiver's personal and family responsibilities.
248.7 	(c) The case manager and the participant must meet within 30 days of the family's 
248.8 	referral to the case manager. The initial family stabilization plan shall be completed within 
248.9 	30 days of the first meeting with the case manager. The case manager shall establish a 
248.10 	schedule for periodic review of the family stabilization plan that includes personal contact 
248.11 	with the participant at least once per month. In addition, the case manager shall review 
248.12 	and modify if necessary the plan under the following circumstances:
248.13 	(1) there is a lack of satisfactory progress in achieving the goals of the plan;
248.14 	(2) the participant has lost unsubsidized or subsidized employment;
248.15 	(3) a family member has failed to comply with a family stabilization plan 
248.16 	requirement;
248.17 	(4) services required by the plan are unavailable; or
248.18 	(5) changes to the plan are needed to promote the well-being of the children.
248.19 	(d) Family stabilization plans under this section shall be written for a period of 
248.20 	time not to exceed six months.
248.21 		Subd. 6.Cooperation with program requirements. (a) To be eligible, a participant 
248.22 	must comply with paragraphs (b) to (f).
248.23 	(b) Participants shall engage in family stabilization plan services for the appropriate 
248.24 	number of hours per week based on the participant's plan, but not fewer than ten hours per 
248.25 	week, provided the activities are scheduled and available, unless good cause exists for 
248.26 	not doing so, as defined in section 256J.57, subdivision 1.
248.27 	(c) The case manager shall review the participant's progress toward the goals in the 
248.28 	family stabilization plan every six months to determine whether conditions have changed, 
248.29 	including whether revisions to the plan are needed.
248.30 	(d) When the participant has increased participation in work-related activities 
248.31 	sufficient to meet the federal participation requirements of TANF, the county agency shall 
248.32 	refer the participant to the MFIP program and assign the participant to a job counselor. 
248.33 	The participant and the job counselor must meet within 15 days of referral to MFIP to 
248.34 	develop an employment plan under section 256J.521. No reapplication is necessary and 
248.35 	financial assistance shall continue without interruption.
249.1 	(e) Participants who have not increased their participation in work activities 
249.2 	sufficient to meet the federal participation requirements of TANF may request a referral to 
249.3 	the MFIP program and assignment to a job counselor after 12 months in the program.
249.4 	(f) A participant's requirement to comply with any or all family stabilization plan 
249.5 	requirements under this subdivision shall be excused when the case management services, 
249.6 	training and educational services, and family support services identified in the participant's 
249.7 	family stabilization plan are unavailable for reasons beyond the control of the participant, 
249.8 	including when money appropriated is not sufficient to provide the services.
249.9 		Subd. 7.Sanctions. (a) The financial assistance grant of a participating family shall 
249.10 	be reduced, according to section 256J.46, if a participating adult fails without good cause 
249.11 	to comply or continue to comply with the family stabilization plan requirements in this 
249.12 	subdivision, unless compliance has been excused under subdivision 6, paragraph (f).
249.13 	(b) Given the purpose of the work participation rate enhancement program in this 
249.14 	section and the nature of the underlying family circumstances that act as barriers to both 
249.15 	employment and full compliance with program requirements, sanctions are appropriate 
249.16 	only when it is clear that there is both the ability to comply and willful noncompliance by 
249.17 	the participant, as confirmed by a behavioral health or medical professional.
249.18 	(c) Prior to the imposition of a sanction, the county agency must review the 
249.19 	participant's case to determine if the family stabilization plan is still appropriate and meet 
249.20 	with the participant face-to-face. The participant may bring an advocate to the face-to-face 
249.21 	meeting. If a face-to-face meeting is not conducted, the county agency must send the 
249.22 	participant a written notice that includes the following face-to-face meeting requirements:
249.23 	(1) during the face-to-face meeting, the county agency must:
249.24 	(i) determine whether the continued noncompliance can be explained and mitigated 
249.25 	by providing a needed family stabilization service, as defined in subdivision 2, paragraph 
249.26 	(d);
249.27 	(ii) determine whether the participant qualifies for a good cause exception under 
249.28 	section 256J.57, or if the sanction is for noncooperation with child support requirements, 
249.29 	determine if the participant qualifies for a good cause exemption under section 256.741, 
249.30 	subdivision 10;
249.31 	(iii) determine whether activities in the family stabilization plan are appropriate 
249.32 	based on the family's circumstances;
249.33 	(iv) explain the consequences of continuing noncompliance;
249.34 	(v) identify other resources that may be available to the participant to meet the 
249.35 	needs of the family; and
249.36 	(vi) inform the participant of the right to appeal under section 256J.40; and
250.1 	(2) if the lack of an identified activity or service can explain the noncompliance, the 
250.2 	county must work with the participant to provide the identified activity.
250.3 	(d) After the requirements of paragraph (c) are met and prior to imposition of a 
250.4 	sanction, the county agency shall provide a notice of intent to sanction under section 
250.5 	256J.57, subdivision 2, and, when applicable, a notice of adverse action as provided 
250.6 	in section 256J.31.
250.7 	(e) Section 256J.57 applies to this section except to the extent that it is modified 
250.8 	by this subdivision.

250.9 	Sec. 17. [256J.621] WORK PARTICIPATION BONUS.
250.10 	Upon exiting the diversionary work program (DWP) or upon terminating MFIP cash 
250.11 	assistance with earnings, a participant who is employed and working 24 hours a week may 
250.12 	be eligible for transitional assistance of $50 per month to assist in meeting the family's 
250.13 	basic needs as the participant continues to move toward self-sufficiency.
250.14 	To be eligible for a transitional assistance payment, the participant must not receive 
250.15 	MFIP cash assistance or DWP assistance during the month and must be employed an 
250.16 	average of at least 24 hours a week. Transitional assistance shall be available for a 
250.17 	maximum of 12 months from the date the participant exited the DWP or terminated MFIP 
250.18 	cash assistance.
250.19 	The commissioner shall establish minimal policies and develop forms to verify 
250.20 	eligibility for transitional assistance. The commissioner is authorized to change or 
250.21 	modify the provisions of this section in order to comply with federal rules or regulations 
250.22 	promulgated as a result of the federal Deficit Reduction Act (DEFRA) of 2005.
250.23 	Expenditures on the transitional assistance program shall be maintenance of effort 
250.24 	state funds. Months in which a participant receives transitional assistance under this 
250.25 	section shall not count toward the participant's MFIP 60-month time limit.

250.26 	Sec. 18. Minnesota Statutes 2004, section 256J.626, subdivision 1, is amended to read:
250.27 		Subdivision 1.Consolidated fund. The consolidated fund is established to support 
250.28 	counties and tribes in meeting their duties under this chapter. Counties and tribes must 
250.29 	use funds from the consolidated fund to develop programs and services that are designed 
250.30 	to improve participant outcomes as measured in section  256J.751, subdivision 2, and 
250.31 	to provide case management services to participants of the work participation rate 
250.32 	enhancement program. Counties may use the funds for any allowable expenditures under 
250.33 	subdivision 2. Tribes may use the funds for any allowable expenditures under subdivision 
250.34 	2, except those in clauses (1) and (6). 

251.1 	Sec. 19. Minnesota Statutes 2004, section 256J.626, subdivision 2, is amended to read:
251.2 		Subd. 2.Allowable expenditures. (a) The commissioner must restrict expenditures 
251.3 	under the consolidated fund to benefits and services allowed under title IV-A of the federal 
251.4 	Social Security Act. Allowable expenditures under the consolidated fund may include, but 
251.5 	are not limited to:
251.6 	(1) short-term, nonrecurring shelter and utility needs that are excluded from the 
251.7 	definition of assistance under Code of Federal Regulations, title 45, section  260.31, for 
251.8 	families who meet the residency requirement in section  256J.12, subdivisions 1 and 1a. 
251.9 	Payments under this subdivision are not considered TANF cash assistance and are not 
251.10 	counted towards the 60-month time limit; 
251.11 	(2) transportation needed to obtain or retain employment or to participate in other 
251.12 	approved work activities or activities under a family stabilization plan;
251.13 	(3) direct and administrative costs of staff to deliver employment services for MFIP 
251.14 	or the diversionary work program, the DWP, or the work participation rate enhancement 
251.15 	program; to administer financial assistance,; and to provide specialized services intended 
251.16 	to assist hard-to-employ participants to transition to work or transition from the work 
251.17 	participation rate enhancement program to MFIP;
251.18 	(4) costs of education and training including functional work literacy and English as 
251.19 	a second language;
251.20 	(5) cost of work supports including tools, clothing, boots, and other work-related 
251.21 	expenses;
251.22 	(6) county administrative expenses as defined in Code of Federal Regulations, title 
251.23 	45, section 260(b);
251.24 	(7) services to parenting and pregnant teens;
251.25 	(8) supported work;
251.26 	(9) wage subsidies;
251.27 	(10) child care needed for MFIP or diversionary work program, the DWP, or the 
251.28 	work participation rate enhancement program participants to participate in social services;
251.29 	(11) child care to ensure that families leaving MFIP or diversionary work program 
251.30 	will continue to receive child care assistance from the time the family no longer qualifies 
251.31 	for transition year child care until an opening occurs under the basic sliding fee child 
251.32 	care program; and
251.33 	(12) services to help noncustodial parents who live in Minnesota and have minor 
251.34 	children receiving MFIP or DWP assistance, but do not live in the same household as the 
251.35 	child, obtain or retain employment; and
252.1 	(13) services to help families participating in the work participation rate 
252.2 	enhancement program achieve the greatest possible degree of self-sufficiency.
252.3 	(b) Administrative costs that are not matched with county funds as provided in 
252.4 	subdivision 8 may not exceed 7.5 percent of a county's or 15 percent of a tribe's allocation 
252.5 	under this section. The commissioner shall define administrative costs for purposes of 
252.6 	this subdivision.
252.7 	(c) The commissioner may waive the cap on administrative costs for a county or tribe 
252.8 	that elects to provide an approved supported employment, unpaid work, or community 
252.9 	work experience program for a major segment of the county's or tribe's MFIP population. 
252.10 	The county or tribe must apply for the waiver on forms provided by the commissioner. In 
252.11 	no case shall total administrative costs exceed the TANF limits.

252.12 	Sec. 20. Minnesota Statutes 2004, section 256J.626, subdivision 3, is amended to read:
252.13 		Subd. 3.Eligibility for services. Families with a minor child, a pregnant woman, 
252.14 	or a noncustodial parent of a minor child receiving assistance, with incomes below 200 
252.15 	percent of the federal poverty guideline for a family of the applicable size, are eligible 
252.16 	for services funded under the consolidated fund. Counties and tribes must give priority 
252.17 	to families currently receiving MFIP or, the diversionary work program, or the work 
252.18 	participation rate enhancement program, and families at risk of receiving MFIP or 
252.19 	diversionary work program.

252.20 	Sec. 21. Minnesota Statutes 2004, section 256J.626, subdivision 4, is amended to read:
252.21 		Subd. 4.County and tribal biennial service agreements. (a) Effective January 1, 
252.22 	2004, and each two-year period thereafter, each county and tribe must have in place an 
252.23 	approved biennial service agreement related to the services and programs in this chapter. 
252.24 	In counties with a city of the first class with a population over 300,000, the county must 
252.25 	consider a service agreement that includes a jointly developed plan for the delivery of 
252.26 	employment services with the city. Counties may collaborate to develop multicounty, 
252.27 	multitribal, or regional service agreements.
252.28 	(b) The service agreements will be completed in a form prescribed by the 
252.29 	commissioner. The agreement must include:
252.30 	(1) a statement of the needs of the service population and strengths and resources 
252.31 	in the community;
252.32 	(2) numerical goals for participant outcomes measures to be accomplished during 
252.33 	the biennial period. The commissioner may identify outcomes from section  256J.751, 
252.34 	subdivision 2, as core outcomes for all counties and tribes; 
253.1 	(3) strategies the county or tribe will pursue to achieve the outcome targets. 
253.2 	Strategies must include specification of how funds under this section will be used and may 
253.3 	include community partnerships that will be established or strengthened; and
253.4 	(4) strategies the county or tribe will pursue under the work participation rate 
253.5 	enhancement program; and
253.6 	(5) other items prescribed by the commissioner in consultation with counties and 
253.7 	tribes.
253.8 	(c) The commissioner shall provide each county and tribe with information needed 
253.9 	to complete an agreement, including: (1) information on MFIP cases in the county or 
253.10 	tribe; (2) comparisons with the rest of the state; (3) baseline performance on outcome 
253.11 	measures; and (4) promising program practices.
253.12 	(d) The service agreement must be submitted to the commissioner by October 15, 
253.13 	2003, and October 15 of each second year thereafter. The county or tribe must allow 
253.14 	a period of not less than 30 days prior to the submission of the agreement to solicit 
253.15 	comments from the public on the contents of the agreement.
253.16 	(e) The commissioner must, within 60 days of receiving each county or tribal service 
253.17 	agreement, inform the county or tribe if the service agreement is approved. If the service 
253.18 	agreement is not approved, the commissioner must inform the county or tribe of any 
253.19 	revisions needed prior to approval.
253.20 	(f) The service agreement in this subdivision supersedes the plan requirements 
253.21 	of section  116L.88. 

253.22 	Sec. 22. Minnesota Statutes 2004, section 256J.626, subdivision 5, is amended to read:
253.23 		Subd. 5.Innovation projects. Beginning January 1, 2005, no more than $3,000,000 
253.24 	of the funds annually appropriated to the commissioner for use in the consolidated 
253.25 	fund shall be available to the commissioner for projects testing innovative approaches 
253.26 	to improving outcomes for MFIP participants, and persons at risk of receiving MFIP 
253.27 	as detailed in subdivision 3, and for providing incentives to counties and tribes that 
253.28 	exceed performance. Projects shall be targeted to geographic areas with poor outcomes 
253.29 	as specified in section  256J.751, subdivision 5, or to subgroups within the MFIP case 
253.30 	load who are experiencing poor outcomes. For purposes of an incentive, a county or 
253.31 	tribe exceeds performance if the county or tribe is above the top of the county or tribe's 
253.32 	annualized range of expected performance on the three-year self-support index under 
253.33 	section 256J.751, subdivision 2, clause (6), and achieves a 50 percent MFIP participation 
253.34 	rate under section 256J.751, subdivision 2, clause (7), as averaged across the four quarterly 
253.35 	measurements for the most recent year for which the measurements are available.

254.1 	Sec. 23. Minnesota Statutes 2005 Supplement, section 256J.626, subdivision 6, 
254.2 	is amended to read:
254.3 		Subd. 6.Base allocation to counties and tribes; definitions. (a) For purposes of 
254.4 	this section, the following terms have the meanings given.
254.5 	(1) "2002 historic spending base" means the commissioner's determination of 
254.6 	the sum of the reimbursement related to fiscal year 2002 of county or tribal agency 
254.7 	expenditures for the base programs listed in clause (6), items (i) through (iv), and earnings 
254.8 	related to calendar year 2002 in the base program listed in clause (6), item (v), and the 
254.9 	amount of spending in fiscal year 2002 in the base program listed in clause (6), item (vi), 
254.10 	issued to or on behalf of persons residing in the county or tribal service delivery area.
254.11 	(2) "Adjusted caseload factor" means a factor weighted:
254.12 	(i) 47 percent on the MFIP cases in each county at four points in time in the most 
254.13 	recent 12-month period for which data is available multiplied by the county's caseload 
254.14 	difficulty factor; and
254.15 	(ii) 53 percent on the count of adults on MFIP in each county and tribe at four points 
254.16 	in time in the most recent 12-month period for which data is available multiplied by the 
254.17 	county or tribe's caseload difficulty factor.
254.18 	(3) "Caseload difficulty factor" means a factor determined by the commissioner for 
254.19 	each county and tribe based upon the self-support index described in section 256J.751, 
254.20 	subdivision 2, clause (7).
254.21 	(4) "Initial allocation" means the amount potentially available to each county or tribe 
254.22 	based on the formula in paragraphs (b) through (h).
254.23 	(5) "Final allocation" means the amount available to each county or tribe based on 
254.24 	the formula in paragraphs (b) through (h), after adjustment by subdivision 7.
254.25 	(6) "Base programs" means the:
254.26 	(i) MFIP employment and training services under Minnesota Statutes 2002, section 
254.27 	256J.62, subdivision 1, in effect June 30, 2002;
254.28 	(ii) bilingual employment and training services to refugees under Minnesota Statutes 
254.29 	2002, section 256J.62, subdivision 6, in effect June 30, 2002;
254.30 	(iii) work literacy language programs under Minnesota Statutes 2002, section 
254.31 	256J.62, subdivision 7, in effect June 30, 2002;
254.32 	(iv) supported work program authorized in Laws 2001, First Special Session chapter 
254.33 	9, article 17, section 2, in effect June 30, 2002;
254.34 	(v) administrative aid program under section 256J.76 in effect December 31, 2002; 
254.35 	and
255.1 	(vi) emergency assistance program under Minnesota Statutes 2002, section 256J.48, 
255.2 	in effect June 30, 2002.
255.3 	(b) The commissioner shall:
255.4 	(1) beginning July 1, 2003, determine the initial allocation of funds available under 
255.5 	this section according to clause (2);
255.6 	(2) allocate all of the funds available for the period beginning July 1, 2003, and 
255.7 	ending December 31, 2004, to each county or tribe in proportion to the county's or tribe's 
255.8 	share of the statewide 2002 historic spending base;
255.9 	(3) determine for calendar year 2005 the initial allocation of funds to be made 
255.10 	available under this section in proportion to the county or tribe's initial allocation for the 
255.11 	period of July 1, 2003, to December 31, 2004;
255.12 	(4) determine for calendar year 2006 the initial allocation of funds to be made 
255.13 	available under this section based 90 percent on the proportion of the county or tribe's 
255.14 	share of the statewide 2002 historic spending base and ten percent on the proportion of 
255.15 	the county or tribe's share of the adjusted caseload factor;
255.16 	(5) determine for calendar year 2007 the initial allocation of funds to be made 
255.17 	available under this section based 70 percent on the proportion of the county or tribe's 
255.18 	share of the statewide 2002 historic spending base and 30 percent on the proportion of the 
255.19 	county or tribe's share of the adjusted caseload factor; and
255.20 	(6) determine for calendar year 2008 and subsequent years the initial allocation of 
255.21 	funds to be made available under this section based 50 percent on the proportion of the 
255.22 	county or tribe's share of the statewide 2002 historic spending base and 50 percent on the 
255.23 	proportion of the county or tribe's share of the adjusted caseload factor.
255.24 	(c) With the commencement of a new or expanded tribal TANF program or an 
255.25 	agreement under section 256.01, subdivision 2, paragraph (g), in which some or all of 
255.26 	the responsibilities of particular counties under this section are transferred to a tribe, 
255.27 	the commissioner shall:
255.28 	(1) in the case where all responsibilities under this section are transferred to a tribal 
255.29 	program, determine the percentage of the county's current caseload that is transferring to a 
255.30 	tribal program and adjust the affected county's allocation accordingly; and
255.31 	(2) in the case where a portion of the responsibilities under this section are 
255.32 	transferred to a tribal program, the commissioner shall consult with the affected county or 
255.33 	counties to determine an appropriate adjustment to the allocation.
255.34 	(d) Effective January 1, 2005, counties and tribes will have their final allocations 
255.35 	adjusted based on the performance provisions of subdivision 7.

256.1 	Sec. 24. [259.86] POSTADOPTION SEARCH SERVICES.
256.2 	(a) The commissioner of human services shall develop a specialized curriculum 
256.3 	to train department, county agency, and social service agency staff in performing and 
256.4 	complying with the postadoption search services developed in the best practices guidelines 
256.5 	reported to the legislature in 2006. 
256.6 	(b) All department and county social service agency staff providing postadoption 
256.7 	search services, shall complete six hours of postadoption search services training as a 
256.8 	specialized curriculum of the child welfare training.
256.9 	(c) All private agency staff providing postadoption search services shall complete at 
256.10 	least six hours of postadoption search services training. 

256.11 	Sec. 25. Minnesota Statutes 2004, section 259.87, is amended to read:
256.12 	259.87 RULES.
256.13 	The commissioner of human services shall make rules as necessary to administer 
256.14 	sections  259.79and,259.83, and 259.86. 

256.15 	Sec. 26. Minnesota Statutes 2004, section 518.551, subdivision 7, is amended to read:
256.16 		Subd. 7.Fees and cost recovery fees for IV-D services. (a) When a recipient of 
256.17 	IV-D services is no longer receiving assistance under the state's title IV-A, IV-E foster 
256.18 	care, medical assistance, or MinnesotaCare programs, the public authority responsible 
256.19 	for child support enforcement must notify the recipient, within five working days of the 
256.20 	notification of ineligibility, that IV-D services will be continued unless the public authority 
256.21 	is notified to the contrary by the recipient. The notice must include the implications 
256.22 	of continuing to receive IV-D services, including the available services and fees, cost 
256.23 	recovery fees, and distribution policies relating to fees.
256.24 	(b) An application fee of $25 shall be paid by the person who applies for child 
256.25 	support and maintenance collection services, except persons who are receiving public 
256.26 	assistance as defined in section   256.741 and, if enacted, the diversionary work program 
256.27 	under section   256J.95, persons who transfer from public assistance to nonpublic assistance 
256.28 	status, and minor parents and parents enrolled in a public secondary school, area learning 
256.29 	center, or alternative learning program approved by the commissioner of education. 
256.30 	(c) In the case of an individual who has never received assistance under a state 
256.31 	program funded under Title IV-A of the Social Security Act and for whom the public 
256.32 	authority has collected at least $500 of support, the public authority must impose an 
256.33 	annual federal collections fee of $25 for each case in which services are furnished. This 
257.1 	fee must be retained by the public authority from support collected on behalf of the 
257.2 	individual, but not from the first $500 collected.
257.3 	(d) When the public authority provides full IV-D services to an obligee who has 
257.4 	applied for those services, upon written notice to the obligee, the public authority must 
257.5 	charge a cost recovery fee of one percent of the amount collected. This fee must be 
257.6 	deducted from the amount of the child support and maintenance collected and not assigned 
257.7 	under section   256.741 before disbursement to the obligee. This fee does not apply to an 
257.8 	obligee who: 
257.9 	(1)  is currently receiving assistance under the state's title IV-A, IV-E foster care, 
257.10 	medical assistance, or MinnesotaCare programs; or
257.11 	(2)  has received assistance under the state's title IV-A or IV-E foster care programs, 
257.12 	until the person has not received this assistance for 24 consecutive months.
257.13 	(d) (e) When the public authority provides full IV-D services to an obligor who has 
257.14 	applied for such services, upon written notice to the obligor, the public authority must 
257.15 	charge a cost recovery fee of one percent of the monthly court-ordered child support and 
257.16 	maintenance obligation. The fee may be collected through income withholding, as well 
257.17 	as by any other enforcement remedy available to the public authority responsible for 
257.18 	child support enforcement.
257.19 	(e) (f) Fees assessed by state and federal tax agencies for collection of overdue 
257.20 	support owed to or on behalf of a person not receiving public assistance must be imposed 
257.21 	on the person for whom these services are provided. The public authority upon written 
257.22 	notice to the obligee shall assess a fee of $25 to the person not receiving public assistance 
257.23 	for each successful federal tax interception. The fee must be withheld prior to the release 
257.24 	of the funds received from each interception and deposited in the general fund.
257.25 	(f) (g) Federal collections fees collected under paragraph (c) and cost recovery fees 
257.26 	collected under paragraphs (c) and (d) and (e) shall be considered child support program 
257.27 	income according to Code of Federal Regulations, title 45, section   304.50, and shall 
257.28 	be deposited in the cost recovery fee special revenue fund account established under 
257.29 	paragraph (h) (i). The commissioner of human services must elect to recover costs based 
257.30 	on either actual or standardized costs. 
257.31 	(g) (h) The limitations of this subdivision on the assessment of fees shall not apply 
257.32 	to the extent inconsistent with the requirements of federal law for receiving funds for the 
257.33 	programs under Title IV-A and Title IV-D of the Social Security Act, United States Code, 
257.34 	title 42, sections 601 to 613 and United States Code, title 42, sections 651 to 662.
257.35 	(h) (i) The commissioner of human services is authorized to establish a special 
257.36 	revenue fund account to receive child support the federal collections fees collected under 
258.1 	paragraph (c) and cost recovery fees collected under paragraphs (d) and (e). A portion of 
258.2 	the nonfederal share of these fees may be retained for expenditures necessary to administer 
258.3 	the fee fees and must be transferred to the child support system special revenue account. 
258.4 	The remaining nonfederal share of the federal collections fees and cost recovery fee fees
258.5 	must be retained by the commissioner and dedicated to the child support general fund 
258.6 	county performance-based grant account authorized under sections   256.979 and   256.9791. 

258.7 	EFFECTIVE DATE. This section is effective October 1, 2006, or later if the 
258.8 	commissioner determines that a later implementation will not result in federal fiscal 
258.9 	penalties.

258.10 	Sec. 27. PARENT FEE SCHEDULE.
 258.11 	Notwithstanding Minnesota Rules, part 3400.0100, subpart 4, the parent fee 
258.12 	schedule for the child care assistance program is as follows:

258.13
258.14	Income Range (as a percent of the federal 
poverty guidelines)
	Co-payment (as a percentage of adjusted 
gross income)
	
258.15	0-74.99%
	$0/month
	
258.16	75.00-99.99%
	$5/month
	
258.17	100.00-104.99%
	2.61%
	
258.18	105.00-109.99%
	2.61%
	
258.19	110.00-114.99%
	2.61%
	
258.20	115.00-119.99%
	2.61%
	
258.21	120.00-124.99%
	2.91%
	
258.22	125.00-129.99%
	2.91%
	
258.23	130.00-134.99%
	2.91%
	
258.24	135.00-139.99%
	2.91%
	
258.25	140.00-144.99%
	3.21%
	
258.26	145.00-149.99%
	3.21%
	
258.27	150.00-154.99%
	3.21%
	
258.28	155.00-159.99%
	3.84%
	
258.29	160.00-164.99%
	3.84%
	
258.30	165.00-169.99%
	4.46%
	
259.1	170.00-174.99%
	4.76%
	
259.2	175.00-179.99%
	5.05%
	
259.3	180.00-184.99%
	5.65%
	
259.4	185.00-189.99%
	5.95%
	
259.5	190.00-194.99%
	6.24%
	
259.6	195.00-199.99%
	6.84%
	
259.7	200.00-204.99%
	7.58%
	
259.8	205.00-209.99%
	8.33%
	
259.9	210.00-214.99%
	9.20%
	
259.10	215.00-219.99%
	10.07%
	
259.11	220.00-224.99%
	10.94%
	
259.12	225.00-229.99%
	11.55%
	
259.13	230.00-234.99%
	12.16%
	
259.14	235.00-239.99%
	12.77%
	
259.15	240.00-244.99%
	13.38%
	
259.16	245.00-249.99%
	14.00%
	
259.17	250%
	ineligible
	
259.18 	A family's monthly co-payment fee is the fixed percentage established for the 
259.19 	income range multiplied by the highest possible income within that income range.

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

259.21 	Sec. 28.  REPEALER.
 259.22 	(a) Minnesota Statutes 2004, section 256J.626, subdivision 9, and Minnesota 
259.23 	Statutes 2005 Supplement, sections 119B.13, subdivision 7; and 256J.626, subdivision 
259.24 	7, are repealed.
259.25 	(b) Laws 2003, First Special Session chapter 14, article 9, section 36,  is repealed.

259.26 	ARTICLE 23
259.27 	MENTAL HEALTH AND CHEMICAL HEALTH

259.28 	Section 1. Minnesota Statutes 2004, section 245.465, is amended by adding a 
259.29 	subdivision to read:
260.1 		Subd. 3.Responsibility not duplicated. For individuals who have health care 
260.2 	coverage, the county board is not responsible for providing mental health services which 
260.3 	are covered by the entity that administers the health care coverage.

260.4 	Sec. 2. [245.4682] MENTAL HEALTH SERVICE DELIVERY AND FINANCE 
260.5 	REFORM.
260.6 		Subdivision 1.Policy. The commissioner of human services shall undertake a series 
260.7 	of reforms to improve the underlying structural, financing, and organizational problems 
260.8 	in Minnesota's mental health system with the goal of improving the availability, quality, 
260.9 	and accountability of mental health care within the state.
260.10 		Subd. 2.General provisions. In the design and implementation of reforms to the 
260.11 	mental health system, the commissioner shall:
260.12 	(1) consult with consumers, families, counties, tribes, advocates, providers, and 
260.13 	other stakeholders;
260.14 	(2) bring to the legislature, and the state Mental Health Advisory Council by January 
260.15 	15, 2007, recommendations for legislation to update the role of counties and to clarify the 
260.16 	case management roles and functions of health plans and counties;
260.17 	(3) ensure continuity of care for persons affected by these reforms including:
260.18 	(i) ensuring client choice of provider by requiring broad provider networks;
260.19 	(ii) allowing clients options to maintain previously established therapeutic 
260.20 	relationships; and
260.21 	(iii) developing mechanisms to facilitate a smooth transition of service 
260.22 	responsibilities;
260.23 	(4) provide accountability for the efficient and effective use of public and private 
260.24 	resources in achieving positive outcomes for consumers;
260.25 	(5) ensure client access to applicable protections and appeals; and
260.26 	(6) make budget transfers that do not increase the state and county costs to 
260.27 	effectively implement improvements to the mental health system and efficiently allocate 
260.28 	state funds. When making transfers necessary to implement movement of responsibility 
260.29 	for clients and services between counties and health care programs, the commissioner, 
260.30 	in consultation with counties, shall ensure that any transfer of state grants to health 
260.31 	care programs, including the value of case management transfer grants under section 
260.32 	256B.0625, subdivision 20, does not exceed the value of the services being transferred 
260.33 	for the latest 12-month period for which data is available. The commissioner may make 
260.34 	quarterly adjustments based on the availability of additional data during the first four 
260.35 	quarters after the transfers first occur.
261.1 		Subd. 3.Regional projects for coordination of care. (a) Consistent with section 
261.2 	256B.69 and chapters 256D and 256L, the commissioner is authorized to solicit, approve, 
261.3 	and implement regional projects to demonstrate the integration of physical and mental 
261.4 	health services within prepaid health plans and their coordination with social services. The 
261.5 	commissioner, in consultation with consumers, families, and their representatives, shall:
261.6 	(1) determine criteria for approving the regional projects and use those criteria to 
261.7 	solicit regional proposals for integrated service networks;
261.8 	(2) require that each project be based on locally defined partnerships that include 
261.9 	at least one health maintenance organization, community integrated service network, or 
261.10 	accountable provider network authorized and operating under chapter 62D, 62N, or 62T, 
261.11 	or county-based purchasing entity under section 256B.692 that is eligible to contract with 
261.12 	the commissioner as a prepaid health plan, and the county or counties within the region;
261.13 	(3) allow potential bidders at least 90 days to respond to the request for proposals;
261.14 	(4) waive any administrative rule not consistent with the implementation of the 
261.15 	regional projects; and
261.16 	(5) begin implementation of the regional projects no earlier than January 1, 2008, 
261.17 	with not more than 20 percent of the statewide population described in paragraph (b) 
261.18 	included during calendar year 2008 and additional individuals included in subsequent 
261.19 	years.
261.20 	(b) Notwithstanding any statute or administrative rule to the contrary, the 
261.21 	commissioner shall enroll all medical assistance eligible persons with serious and 
261.22 	persistent mental illness or severe emotional disturbance in the prepaid plan of their choice 
261.23 	within the project region unless:
261.24 	 (1) an individual has another basis for exclusion from the prepaid plan under section 
261.25 	256B.69, subdivision 4; 
261.26 	 (2) an individual has a previously established therapeutic relationship with a 
261.27 	provider who is not included in the available prepaid plans; or
261.28 	(3) the service the individual wishes to use is not included in the available prepaid 
261.29 	plans.
261.30 	 (c) If the person with serious and persistent mental illness or severe emotional 
261.31 	disturbance declines to choose a plan, the commissioner may preferentially assign 
261.32 	that person to the prepaid plan participating in the integrated service network. The 
261.33 	commissioner shall implement the enrollment changes within a regional project on the 
261.34 	timeline specified in that region's approved application.
261.35 	(d) The commissioner, in consultation with consumers, families, and their 
261.36 	representatives, shall evaluate the regional projects begun in 2008, and shall refine the 
262.1 	design of the regional service integration projects before expanding beyond the 20 
262.2 	percent of the statewide population and expanding the number of regions engaged in the 
262.3 	demonstration projects as additional qualified applicant partnerships present themselves.
262.4 	(e) The commissioner shall apply for any federal waivers necessary to implement 
262.5 	these changes.

262.6 	Sec. 3. [245.4835] COUNTY MAINTENANCE OF EFFORT.
262.7 		Subdivision 1.Required expenditures. Counties must maintain a level of 
262.8 	expenditures for mental health services under sections 245.461 to 245.484 and 245.487 to 
262.9 	245.4887 so that each year's county expenditures are at least equal to that county's average 
262.10 	expenditures for those services for calendar years 2004 and 2005. The commissioner will 
262.11 	adjust each county's base level for minimum expenditures in each year by the amount of 
262.12 	any increase or decrease in that county's state grants or other noncounty revenues for 
262.13 	mental health services under sections 245.461 to 245.484 and 245.487 to 245.4887.
262.14 		Subd. 2.Failure to maintain expenditures. If a county does not comply with 
262.15 	subdivision 1, the commissioner shall require the county to develop a corrective action plan 
262.16 	according to a format and timeline established by the commissioner. If the commissioner 
262.17 	determines that a county has not developed an acceptable corrective action plan within 
262.18 	the required timeline, or that the county is not in compliance with an approved corrective 
262.19 	action plan, the protections provided to that county under section 245.485 do not apply.

262.20 	Sec. 4. Minnesota Statutes 2005 Supplement, section 245.4874, is amended to read:
262.21 	245.4874 DUTIES OF COUNTY BOARD.
262.22 		Subdivision 1.Duties of the county board. (a) The county board must:
262.23 	(1) develop a system of affordable and locally available children's mental health 
262.24 	services according to sections 245.487 to 245.4887;
262.25 	(2) establish a mechanism providing for interagency coordination as specified in 
262.26 	section 245.4875, subdivision 6;
262.27 	(3) consider the assessment of unmet needs in the county as reported by the local 
262.28 	children's mental health advisory council under section 245.4875, subdivision 5, paragraph 
262.29 	(b), clause (3). The county shall provide, upon request of the local children's mental health 
262.30 	advisory council, readily available data to assist in the determination of unmet needs;
262.31 	(4) assure that parents and providers in the county receive information about how to 
262.32 	gain access to services provided according to sections 245.487 to 245.4887;
262.33 	(5) coordinate the delivery of children's mental health services with services 
262.34 	provided by social services, education, corrections, health, and vocational agencies to 
263.1 	improve the availability of mental health services to children and the cost-effectiveness of 
263.2 	their delivery;
263.3 	(6) assure that mental health services delivered according to sections 245.487
263.4 	to 245.4887 are delivered expeditiously and are appropriate to the child's diagnostic 
263.5 	assessment and individual treatment plan;
263.6 	(7) provide the community with information about predictors and symptoms of 
263.7 	emotional disturbances and how to access children's mental health services according to 
263.8 	sections 245.4877 and 245.4878;
263.9 	(8) provide for case management services to each child with severe emotional 
263.10 	disturbance according to sections 245.486; 245.4871, subdivisions 3 and 4; and 245.4881, 
263.11 	subdivisions 1, 3, and 5;
263.12 	(9) provide for screening of each child under section 245.4885 upon admission 
263.13 	to a residential treatment facility, acute care hospital inpatient treatment, or informal 
263.14 	admission to a regional treatment center;
263.15 	(10) prudently administer grants and purchase-of-service contracts that the county 
263.16 	board determines are necessary to fulfill its responsibilities under sections 245.487 to 
263.17 	245.4887;
263.18 	(11) assure that mental health professionals, mental health practitioners, and case 
263.19 	managers employed by or under contract to the county to provide mental health services 
263.20 	are qualified under section 245.4871;
263.21 	(12) assure that children's mental health services are coordinated with adult mental 
263.22 	health services specified in sections 245.461 to 245.486 so that a continuum of mental 
263.23 	health services is available to serve persons with mental illness, regardless of the person's 
263.24 	age;
263.25 	(13) assure that culturally informed mental health consultants are used as necessary 
263.26 	to assist the county board in assessing and providing appropriate treatment for children of 
263.27 	cultural or racial minority heritage; and
263.28 	(14) consistent with section 245.486, arrange for or provide a children's mental 
263.29 	health screening to a child receiving child protective services or a child in out-of-home 
263.30 	placement, a child for whom parental rights have been terminated, a child found to be 
263.31 	delinquent, and a child found to have committed a juvenile petty offense for the third or 
263.32 	subsequent time, unless a screening has been performed within the previous 180 days, or 
263.33 	the child is currently under the care of a mental health professional. The court or county 
263.34 	agency must notify a parent or guardian whose parental rights have not been terminated of 
263.35 	the potential mental health screening and the option to prevent the screening by notifying 
263.36 	the court or county agency in writing. The screening shall be conducted with a screening 
264.1 	instrument approved by the commissioner of human services according to criteria that 
264.2 	are updated and issued annually to ensure that approved screening instruments are valid 
264.3 	and useful for child welfare and juvenile justice populations, and shall be conducted 
264.4 	by a mental health practitioner as defined in section 245.4871, subdivision 26, or a 
264.5 	probation officer or local social services agency staff person who is trained in the use of 
264.6 	the screening instrument. Training in the use of the instrument shall include training in the 
264.7 	administration of the instrument, the interpretation of its validity given the child's current 
264.8 	circumstances, the state and federal data practices laws and confidentiality standards, the 
264.9 	parental consent requirement, and providing respect for families and cultural values. 
264.10 	If the screen indicates a need for assessment, the child's family, or if the family lacks 
264.11 	mental health insurance, the local social services agency, in consultation with the child's 
264.12 	family, shall have conducted a diagnostic assessment, including a functional assessment, 
264.13 	as defined in section 245.4871. The administration of the screening shall safeguard the 
264.14 	privacy of children receiving the screening and their families and shall comply with the 
264.15 	Minnesota Government Data Practices Act, chapter 13, and the federal Health Insurance 
264.16 	Portability and Accountability Act of 1996, Public Law 104-191. Screening results shall be 
264.17 	considered private data and the commissioner shall not collect individual screening results.
264.18 	(b) When the county board refers clients to providers of children's therapeutic 
264.19 	services and supports under section 256B.0943, the county board must clearly identify 
264.20 	the desired services components not covered under section 256B.0943 and identify the 
264.21 	reimbursement source for those requested services, the method of payment, and the 
264.22 	payment rate to the provider.
264.23 		Subd. 2.Responsibility not duplicated. For individuals that have health care 
264.24 	coverage, the county board is not responsible for providing mental health services which 
264.25 	are covered by the entity which administers the health care coverage. 

264.26 	Sec. 5. [245.4889] CHILDREN'S MENTAL HEALTH GRANTS.
264.27 		Subdivision 1.Establishment and authority. The commissioner is authorized to 
264.28 	make grants from available appropriations to assist counties, Indian tribes, children's 
264.29 	collaboratives under section 124D.23 or 245.493, or mental health service providers for 
264.30 	providing services to children with emotional disturbances as defined in section 245.4871, 
264.31 	subdivision 15, and their families; and to young adults meeting the criteria for transition 
264.32 	services in section 245.4875, subdivision 8, and their families. Services must be designed 
264.33 	to help each child to function and remain with the child's family in the community and 
264.34 	delivered consistent with the child's treatment plan. Transition services to eligible young 
264.35 	adults must be designed to foster independent living in the community.
265.1 		Subd. 2.Grant application and reporting requirements. To apply for a grant 
265.2 	an applicant organization shall submit an application and budget for the use of the 
265.3 	money in the form specified by the commissioner. The commissioner shall make grants 
265.4 	only to entities whose applications and budgets are approved by the commissioner. In 
265.5 	awarding grants, the commissioner shall give priority to applications that indicate plans 
265.6 	to collaborate in the development, funding, and delivery of services with other agencies 
265.7 	in the local system of care. The commissioner shall specify requirements for reports, 
265.8 	including quarterly fiscal reports, according to section 256.01, subdivision 2, paragraph 
265.9 	(q). The commissioner shall require collection of data and periodic reports that the 
265.10 	commissioner deems necessary to demonstrate the effectiveness of each service.

265.11 	Sec. 6. Minnesota Statutes 2004, section 246.54, subdivision 1, is amended to read:
265.12 		Subdivision 1.County portion for cost of care. Except for chemical dependency 
265.13 	services provided under sections  254B.01 to  254B.09, the client's county shall pay to the 
265.14 	state of Minnesota a portion of the cost of care provided in a regional treatment center 
265.15 	or a state nursing facility to a client legally settled in that county. A county's payment 
265.16 	shall be made from the county's own sources of revenue and payments shall be paid as 
265.17 	follows: payments to the state from the county shall equal 20 percent of the cost of care, as 
265.18 	determined by the commissioner, for each day of the first 60 days, or the portion thereof, 
265.19 	that the client spends at a regional treatment center or a state nursing facility. After the 
265.20 	first 60 days, the county share is 50 percent. This increase in the county share of payment 
265.21 	shall not apply if the continued placement of the client in the regional treatment center or 
265.22 	state nursing facility is the result of one of the following:
265.23 	(1) the individual has been admitted for assessment and treatment under a court 
265.24 	order issued under the Rules of Criminal Procedure, parts 20.01 and 20.02; or
265.25 	(2) there has been medical certification by the head of the center or facility that the 
265.26 	client is in need of continued treatment at a hospital level of care.
265.27 	If payments received by the state under sections  246.50 to  246.53 exceed 80 percent 
265.28 	of the cost of care for the first 60 days or 50 percent of any additional days, the county 
265.29 	shall be responsible for paying the state only the remaining amount. The county shall 
265.30 	not be entitled to reimbursement from the client, the client's estate, or from the client's 
265.31 	relatives, except as provided in section  246.53. No such payments shall be made for any 
265.32 	client who was last committed prior to July 1, 1947.

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

266.1 	Sec. 7. Minnesota Statutes 2004, section 246.54, is amended by adding a subdivision 
266.2 	to read:
266.3 		Subd. 3.Additional exception for community behavioral health hospitals.
 266.4 	Subdivision 1 does not apply to services provided at state-operated community behavioral 
266.5 	health hospitals. For services at these facilities, a county's payment shall be made from 
266.6 	the county's own sources of revenue and payments shall be paid as follows: payments 
266.7 	to the state from the county shall equal 50 percent of the cost of care, as determined 
266.8 	by the commissioner, for each day, or the portion thereof, that the client spends at 
266.9 	the hospital. After the first 60 days, the county share of payment shall not apply if the 
266.10 	continued placement of the client in the community behavioral health hospital is the result 
266.11 	of one of the following:
266.12 	(1) the individual has been admitted for assessment and treatment under a court 
266.13 	order issued under the Rules of Criminal Procedure, parts 20.01 and 20.02; or
266.14 	(2) there has been medical certification by the head of the hospital that the client is 
266.15 	in need of continued treatment at a hospital level of care.
266.16 	If payments received by the state under sections 246.50 to 246.53 exceed 50 percent 
266.17 	of the cost of care, the county shall be responsible for paying the state only the remaining 
266.18 	amount. The county shall not be entitled to reimbursement from the client, the client's 
266.19 	estate, or from the client's relatives, except as provided in section 246.53.

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

266.21 	Sec. 8. Minnesota Statutes 2004, section 253B.02, subdivision 2, is amended to read:
266.22 		Subd. 2.Chemically dependent person. "Chemically dependent person" means 
266.23 	any person (a) determined as being incapable of self-management or management of 
266.24 	personal affairs by reason of the habitual and excessive use of alcohol, drugs, or other 
266.25 	mind-altering substances; and (b) whose recent conduct as a result of habitual and 
266.26 	excessive use of alcohol, drugs, or other mind-altering substances poses a substantial 
266.27 	likelihood of physical harm to self or others as demonstrated by (i) a recent attempt or 
266.28 	threat to physically harm self or others, (ii) evidence of recent serious physical problems, 
266.29 	or (iii) a failure to obtain necessary food, clothing, shelter, or medical care. "Chemically 
266.30 	dependent person" also means a pregnant woman who has engaged during the pregnancy 
266.31 	in habitual or excessive use, for a nonmedical purpose, of any of the following controlled 
266.32 	substances or their derivatives: opium, cocaine, heroin, phencyclidine, methamphetamine, 
266.33 	or amphetamine.

266.34 	Sec. 9. [254A.20] CHEMICAL USE ASSESSMENTS.
267.1 		Subdivision 1.Persons arrested outside of home county.  When a chemical use 
267.2 	assessment is required under Minnesota Rules, parts 9530.6600 to 9530.6655, for a person 
267.3 	who is arrested and taken into custody by a peace officer outside of the person's county 
267.4 	of residence, the assessment must be completed by the person's county of residence no 
267.5 	later than three weeks after the assessment is initially requested. If the assessment is 
267.6 	not performed within this time limit, the county where the person is to be sentenced 
267.7 	shall perform the assessment. The county of financial responsibility must be determined 
267.8 	under chapter 256G.
267.9 		Subd. 2.Probation officer as contact.  When a chemical use assessment is required 
267.10 	under Minnesota Rules, parts 9530.6600 to 9530.6655, for a person who is on probation 
267.11 	or under other correctional supervision, the assessor, either orally or in writing, shall 
267.12 	contact the person's probation officer to verify or supplement the information provided 
267.13 	by the person.
267.14 		Subd. 3.Financial conflicts of interest.  (a) Except as provided in paragraph (b), an 
267.15 	assessor conducting a chemical use assessment under Minnesota Rules, parts 9530.6600 
267.16 	to 9530.6655, may not have any direct or shared financial interest or referral relationship 
267.17 	resulting in shared financial gain with a treatment provider.
267.18 	(b) A county may contract with an assessor having a conflict described in paragraph 
267.19 	(a) if the county documents that:
267.20 	(1) the assessor is employed by a culturally specific service provider or a service 
267.21 	provider with a program designed to treat individuals of a specific age, sex, or sexual 
267.22 	preference; or
267.23 	(2) the county does not employ a sufficient number of qualified assessors and the 
267.24 	only qualified assessors available in the county have a direct or shared financial interest or 
267.25 	a referral relationship resulting in shared financial gain with a treatment provider.
267.26 	An assessor under this paragraph may not place clients in treatment. The assessor 
267.27 	shall gather required information and provide it to the county along with any required 
267.28 	documentation. The county shall make all placement decisions for clients assessed by 
267.29 	assessors under this paragraph.

267.30 	EFFECTIVE DATE. This section is effective July 1, 2006, except for subdivision 
267.31 	3, which is effective July 1, 2008.

267.32 	Sec. 10. [254A.25] DUTIES OF COMMISSIONER RELATED TO CHEMICAL 
267.33 	HEALTH.
267.34 	The commissioner shall:
268.1 	(1) develop a directory that identifies key characteristics of each licensed chemical 
268.2 	dependency treatment program; and
268.3 	(2) post copies of state licensing reviews  at an online location where they may be 
268.4 	reviewed by agencies that make client placements.

268.5 	Sec. 11. Minnesota Statutes 2004, section 256B.0625, subdivision 20, is amended to 
268.6 	read:
268.7 		Subd. 20.Mental health case management. (a) To the extent authorized by rule 
268.8 	of the state agency, medical assistance covers case management services to persons with 
268.9 	serious and persistent mental illness and children with severe emotional disturbance. 
268.10 	Services provided under this section must meet the relevant standards in sections  245.461
268.11 	to  245.4887, the Comprehensive Adult and Children's Mental Health Acts, Minnesota 
268.12 	Rules, parts 9520.0900 to 9520.0926, and 9505.0322, excluding subpart 10. 
268.13 	(b) Entities meeting program standards set out in rules governing family community 
268.14 	support services as defined in section  245.4871, subdivision 17, are eligible for medical 
268.15 	assistance reimbursement for case management services for children with severe 
268.16 	emotional disturbance when these services meet the program standards in Minnesota 
268.17 	Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10. 
268.18 	(c) Medical assistance and MinnesotaCare payment for mental health case 
268.19 	management shall be made on a monthly basis. In order to receive payment for an eligible 
268.20 	child, the provider must document at least a face-to-face contact with the child, the child's 
268.21 	parents, or the child's legal representative. To receive payment for an eligible adult, the 
268.22 	provider must document:
268.23 	(1) at least a face-to-face contact with the adult or the adult's legal representative; or
268.24 	(2) at least a telephone contact with the adult or the adult's legal representative and 
268.25 	document a face-to-face contact with the adult or the adult's legal representative within 
268.26 	the preceding two months.
268.27 	(d) Payment for mental health case management provided by county or state staff 
268.28 	shall be based on the monthly rate methodology under section  256B.094, subdivision 6, 
268.29 	paragraph (b), with separate rates calculated for child welfare and mental health, and 
268.30 	within mental health, separate rates for children and adults. 
268.31 	(e) Payment for mental health case management provided by Indian health services 
268.32 	or by agencies operated by Indian tribes may be made according to this section or other 
268.33 	relevant federally approved rate setting methodology.
268.34 	(f) Payment for mental health case management provided by vendors who contract 
268.35 	with a county or Indian tribe shall be based on a monthly rate negotiated by the host county 
269.1 	or tribe. The negotiated rate must not exceed the rate charged by the vendor for the same 
269.2 	service to other payers. If the service is provided by a team of contracted vendors, the 
269.3 	county or tribe may negotiate a team rate with a vendor who is a member of the team. The 
269.4 	team shall determine how to distribute the rate among its members. No reimbursement 
269.5 	received by contracted vendors shall be returned to the county or tribe, except to reimburse 
269.6 	the county or tribe for advance funding provided by the county or tribe to the vendor.
269.7 	(g) If the service is provided by a team which includes contracted vendors, tribal 
269.8 	staff, and county or state staff, the costs for county or state staff participation in the team 
269.9 	shall be included in the rate for county-provided services. In this case, the contracted 
269.10 	vendor, the tribal agency, and the county may each receive separate payment for services 
269.11 	provided by each entity in the same month. In order to prevent duplication of services, 
269.12 	each entity must document, in the recipient's file, the need for team case management and 
269.13 	a description of the roles of the team members.
269.14 	(h) The commissioner shall calculate the nonfederal share of actual medical 
269.15 	assistance and general assistance medical care payments for each county, based on the 
269.16 	higher of calendar year 1995 or 1996, by service date, project that amount forward to 1999, 
269.17 	and transfer one-half of the result from medical assistance and general assistance medical 
269.18 	care to each county's mental health grants under section  256E.12 for calendar year 1999. 
269.19 	The annualized minimum amount added to each county's mental health grant shall be 
269.20 	$3,000 per year for children and $5,000 per year for adults. The commissioner may reduce 
269.21 	the statewide growth factor in order to fund these minimums. The annualized total amount 
269.22 	transferred shall become part of the base for future mental health grants for each county. 
269.23 	(i) Any net increase in revenue to the county or tribe as a result of the change in this 
269.24 	section must be used to provide expanded mental health services as defined in sections 
269.25 	245.461 to  245.4887, the Comprehensive Adult and Children's Mental Health Acts, 
269.26 	excluding inpatient and residential treatment. For adults, increased revenue may also be 
269.27 	used for services and consumer supports which are part of adult mental health projects 
269.28 	approved under Laws 1997, chapter 203, article 7, section 25. For children, increased 
269.29 	revenue may also be used for respite care and nonresidential individualized rehabilitation 
269.30 	services as defined in section  245.492, subdivisions 17 and 23. "Increased revenue" has 
269.31 	the meaning given in Minnesota Rules, part 9520.0903, subpart 3. 
269.32 	(j)(h) Notwithstanding section  256B.19, subdivision 1, the nonfederal share of 
269.33 	costs for mental health case management shall be provided by the recipient's county of 
269.34 	responsibility, as defined in sections  256G.01 to  256G.12, from sources other than federal 
269.35 	funds or funds used to match other federal funds. If the service is provided by a tribal 
269.36 	agency, the nonfederal share, if any, shall be provided by the recipient's tribe. When this 
270.1 	service is paid by the state without a federal share through fee-for-service, 50 percent of 
270.2 	the cost shall be provided by the recipient's county of responsibility.
270.3 	(i) Notwithstanding Minnesota Rules to the contrary, prepaid medical assistance, 
270.4 	general assistance medical care, and MinnesotaCare include mental health case 
270.5 	management. When the service is provided through prepaid capitation, the nonfederal 
270.6 	share is paid by the state and there is no county share.
270.7 	(k) (j) The commissioner may suspend, reduce, or terminate the reimbursement to a 
270.8 	provider that does not meet the reporting or other requirements of this section. The county 
270.9 	of responsibility, as defined in sections  256G.01 to  256G.12, or, if applicable, the tribal 
270.10 	agency, is responsible for any federal disallowances. The county or tribe may share this 
270.11 	responsibility with its contracted vendors. 
270.12 	(l) (k) The commissioner shall set aside a portion of the federal funds earned for 
270.13 	county expenditures under this section to repay the special revenue maximization account 
270.14 	under section  256.01, subdivision 2, clause (15). The repayment is limited to: 
270.15 	(1) the costs of developing and implementing this section; and
270.16 	(2) programming the information systems.
270.17 	(m) (l) Payments to counties and tribal agencies for case management expenditures 
270.18 	under this section shall only be made from federal earnings from services provided 
270.19 	under this section. When this service is paid by the state without a federal share through 
270.20 	fee-for-service, 50 percent of the cost shall be provided by the state. Payments to 
270.21 	county-contracted vendors shall include both the federal earnings, the state share, and the 
270.22 	county share.
270.23 	(n) Notwithstanding section  256B.041, county payments for the cost of mental 
270.24 	health case management services provided by county or state staff shall not be made 
270.25 	to the commissioner of finance. For the purposes of mental health case management 
270.26 	services provided by county or state staff under this section, the centralized disbursement 
270.27 	of payments to counties under section  256B.041 consists only of federal earnings from 
270.28 	services provided under this section.
270.29 	(o) (m) Case management services under this subdivision do not include therapy, 
270.30 	treatment, legal, or outreach services.
270.31 	(p) (n) If the recipient is a resident of a nursing facility, intermediate care facility, 
270.32 	or hospital, and the recipient's institutional care is paid by medical assistance, payment 
270.33 	for case management services under this subdivision is limited to the last 180 days of 
270.34 	the recipient's residency in that facility and may not exceed more than six months in a 
270.35 	calendar year.
271.1 	(q) (o) Payment for case management services under this subdivision shall not 
271.2 	duplicate payments made under other program authorities for the same purpose.
271.3 	(r) By July 1, 2000, the commissioner shall evaluate the effectiveness of the changes 
271.4 	required by this section, including changes in number of persons receiving mental health 
271.5 	case management, changes in hours of service per person, and changes in caseload size.
271.6 	(s) For each calendar year beginning with the calendar year 2001, the annualized 
271.7 	amount of state funds for each county determined under paragraph (h) shall be adjusted by 
271.8 	the county's percentage change in the average number of clients per month who received 
271.9 	case management under this section during the fiscal year that ended six months prior to 
271.10 	the calendar year in question, in comparison to the prior fiscal year.
271.11 	(t) For counties receiving the minimum allocation of $3,000 or $5,000 described 
271.12 	in paragraph (h), the adjustment in paragraph (s) shall be determined so that the county 
271.13 	receives the higher of the following amounts:
271.14 	(1) a continuation of the minimum allocation in paragraph (h); or
271.15 	(2) an amount based on that county's average number of clients per month who 
271.16 	received case management under this section during the fiscal year that ended six months 
271.17 	prior to the calendar year in question, times the average statewide grant per person per 
271.18 	month for counties not receiving the minimum allocation.
271.19 	(u) The adjustments in paragraphs (s) and (t) shall be calculated separately for 
271.20 	children and adults.

271.21 	EFFECTIVE DATE. This section is effective January 1, 2008.

271.22 	Sec. 12. Minnesota Statutes 2004, section 256B.0625, subdivision 28, is amended to 
271.23 	read:
271.24 		Subd. 28.Certified nurse practitioner services. Medical assistance covers 
271.25 	services performed by a certified pediatric nurse practitioner, a certified family nurse 
271.26 	practitioner, a certified adult nurse practitioner, a certified obstetric/gynecological 
271.27 	nurse practitioner, a certified neonatal nurse practitioner, or a certified geriatric nurse 
271.28 	practitioner, a clinical nurse specialist in mental health, or a certified psychiatric nurse 
271.29 	practitioner in independent practice, if:
271.30 	(1) the service provided on an inpatient basis is not included as part of the cost for 
271.31 	inpatient services included in the operating payment rate;
271.32 	(2) the service is otherwise covered under this chapter as a physician service; and
271.33 	(3) the service is within the scope of practice of the nurse practitioner's license as a 
271.34 	registered nurse, as defined in section  148.171.

272.1 	Sec. 13. Minnesota Statutes 2004, section 256B.0945, subdivision 1, is amended to 
272.2 	read:
272.3 		Subdivision 1.Provider qualifications. Counties must arrange to provide 
272.4 	residential services for children with severe emotional disturbance according to sections  
272.5 	245.4882,  245.4885, and this section. Services must be provided by a facility that is 
272.6 	licensed according to section  245.4882 and administrative rules promulgated thereunder, 
272.7 	and under contract with the county. Facilities providing services under subdivision 2, 
272.8 	paragraph (a), must be accredited as a psychiatric facility by the Joint Commission 
272.9 	on Accreditation of Healthcare Organizations, the Commission on Accreditation of 
272.10 	Rehabilitation Facilities, or the Council on Accreditation. Accreditation is not required for 
272.11 	facilities providing services under subdivision 2, paragraph (b).

272.12 	Sec. 14. Minnesota Statutes 2004, section 256B.0945, subdivision 4, is amended to 
272.13 	read:
272.14 		Subd. 4.Payment rates. (a) Notwithstanding sections  256B.19 and  256B.041, 
272.15 	payments to counties for residential services provided by a residential facility shall only 
272.16 	be made of federal earnings for services provided under this section, and the nonfederal 
272.17 	share of costs for services provided under this section shall be paid by the county from 
272.18 	sources other than federal funds or funds used to match other federal funds. Payment to 
272.19 	counties for services provided according to this section shall be a proportion of the per 
272.20 	day contract rate that relates to rehabilitative mental health services and shall not include 
272.21 	payment for costs or services that are billed to the IV-E program as room and board. 
272.22 	(b) Per diem rates paid to providers under this section by prepaid plans shall be the 
272.23 	proportion of the per day contract rate that relates to rehabilitative mental health services 
272.24 	and shall not include payment for costs or services that are billed to the IV-E program 
272.25 	as room and board.
272.26 	(c) The commissioner shall set aside a portion not to exceed five percent of the 
272.27 	federal funds earned for county expenditures under this section to cover the state costs of 
272.28 	administering this section. Any unexpended funds from the set-aside shall be distributed 
272.29 	to the counties in proportion to their earnings under this section.

272.30 	EFFECTIVE DATE. This section is effective January 1, 2008.

272.31 	Sec. 15. Minnesota Statutes 2005 Supplement, section 256B.0946, subdivision 1, 
272.32 	is amended to read:
272.33 		Subdivision 1.Covered service. (a) Effective July 1, 2006, and subject to federal 
272.34 	approval, medical assistance covers medically necessary services described under 
273.1 	paragraph (b) that are provided by a provider entity eligible under subdivision 3 to a client 
273.2 	eligible under subdivision 2 who is placed in a treatment foster home licensed under 
273.3 	Minnesota Rules, parts 2960.3000 to 2960.3340.
273.4 	(b) Services to children with severe emotional disturbance residing in treatment 
273.5 	foster care settings must meet the relevant standards for mental health services under 
273.6 	sections 245.487 to 245.4887. In addition, specific service components reimbursed by 
273.7 	medical assistance must meet the following standards:
273.8 	(1) case management service component must meet the standards in Minnesota 
273.9 	Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10;
273.10 	(2) psychotherapy, crisis assistance, and skills training components must meet the 
273.11 	standards for children's therapeutic services and supports in section 256B.0943; and
273.12 	(3) family psychoeducation services under supervision of a mental health 
273.13 	professional.

273.14 	Sec. 16. Minnesota Statutes 2004, section 256B.69, subdivision 5g, is amended to read:
273.15 		Subd. 5g.Payment for covered services. For services rendered on or after January 
273.16 	1, 2003, the total payment made to managed care plans for providing covered services 
273.17 	under the medical assistance and general assistance medical care programs is reduced by 
273.18 	.5 percent from their current statutory rates. This provision excludes payments for nursing 
273.19 	home services, home and community-based waivers, and payments to demonstration 
273.20 	projects for persons with disabilities, and mental health services added as covered benefits 
273.21 	after December 31, 2006.

273.22 	Sec. 17. Minnesota Statutes 2004, section 256B.69, subdivision 5h, is amended to read:
273.23 		Subd. 5h.Payment reduction. In addition to the reduction in subdivision 5g, 
273.24 	the total payment made to managed care plans under the medical assistance program is 
273.25 	reduced 1.0 percent for services provided on or after October 1, 2003, and an additional 
273.26 	1.0 percent for services provided on or after January 1, 2004. This provision excludes 
273.27 	payments for nursing home services, home and community-based waivers, and payments 
273.28 	to demonstration projects for persons with disabilities, and mental health services added as 
273.29 	covered benefits after December 31, 2006.

273.30 	Sec. 18. [256B.763] CRITICAL ACCESS MENTAL HEALTH RATE INCREASE.
273.31 	(a) For services defined in paragraph (b) and rendered on or after July 1, 2007, 
273.32 	payment rates shall be increased by 23.7 percent over the rates in effect on January 1, 
273.33 	2006, for:
274.1 	(1) psychiatrists and advanced practice registered nurses with a psychiatric specialty;
274.2 	(2) community mental health centers under section 256B.0625, subdivision 5; and
274.3 	(3) mental health clinics and centers certified under Minnesota Rules, parts 
274.4 	9520.0750 to 9520.0870, or hospital outpatient psychiatric departments that are designated 
274.5 	as essential community providers under section 62Q.19.
274.6 	(b) This increase applies to group skills training when provided as a component of 
274.7 	children's therapeutic services and support, psychotherapy, medication management, 
274.8 	evaluation and management, diagnostic assessment, explanation of findings, psychological 
274.9 	testing, neuropsychological services, direction of behavioral aides, and inpatient 
274.10 	consultation.
274.11 	(c) This increase does not apply to rates that are governed by section 256B.0625, 
274.12 	subdivision 30, or 256B.761, paragraph (b), other cost-based rates, rates that are 
274.13 	negotiated with the county, rates that are established by the federal government, or rates 
274.14 	that increased between January 1, 2004, and January 1, 2005.
274.15 	(d) The commissioner shall adjust rates paid to prepaid health plans under contract 
274.16 	with the commissioner to reflect the rate increases provided in paragraph (a). The prepaid 
274.17 	health plan must pass this rate increase to the providers identified in paragraph (a).

274.18 	Sec. 19. Minnesota Statutes 2005 Supplement, section 256D.03, subdivision 4, is 
274.19 	amended to read:
274.20 		Subd. 4.General assistance medical care; services. (a) (i) For a person who is 
274.21 	eligible under subdivision 3, paragraph (a), clause (2), item (i), general assistance medical 
274.22 	care covers, except as provided in paragraph (c):
274.23 	(1) inpatient hospital services;
274.24 	(2) outpatient hospital services;
274.25 	(3) services provided by Medicare certified rehabilitation agencies;
274.26 	(4) prescription drugs and other products recommended through the process 
274.27 	established in section 256B.0625, subdivision 13;
274.28 	(5) equipment necessary to administer insulin and diagnostic supplies and equipment 
274.29 	for diabetics to monitor blood sugar level;
274.30 	(6) eyeglasses and eye examinations provided by a physician or optometrist;
274.31 	(7) hearing aids;
274.32 	(8) prosthetic devices;
274.33 	(9) laboratory and X-ray services;
274.34 	(10) physician's services;
274.35 	(11) medical transportation except special transportation;
275.1 	(12) chiropractic services as covered under the medical assistance program;
275.2 	(13) podiatric services;
275.3 	(14) dental services as covered under the medical assistance program;
275.4 	(15) outpatient services provided by a mental health center or clinic that is under 
275.5 	contract with the county board and is established under section 245.62 mental health 
275.6 	services covered under chapter 256B;
275.7 	(16) day treatment services for mental illness provided under contract with the 
275.8 	county board;
275.9 	(17)(16) prescribed medications for persons who have been diagnosed as mentally 
275.10 	ill as necessary to prevent more restrictive institutionalization;
275.11 	(18) psychological services,(17) medical supplies and equipment, and Medicare 
275.12 	premiums, coinsurance and deductible payments;
275.13 	(19) (18) medical equipment not specifically listed in this paragraph when the use 
275.14 	of the equipment will prevent the need for costlier services that are reimbursable under 
275.15 	this subdivision;
275.16 	(20) (19) services performed by a certified pediatric nurse practitioner, a 
275.17 	certified family nurse practitioner, a certified adult nurse practitioner, a certified 
275.18 	obstetric/gynecological nurse practitioner, a certified neonatal nurse practitioner, or a 
275.19 	certified geriatric nurse practitioner in independent practice, if (1) the service is otherwise 
275.20 	covered under this chapter as a physician service, (2) the service provided on an inpatient 
275.21 	basis is not included as part of the cost for inpatient services included in the operating 
275.22 	payment rate, and (3) the service is within the scope of practice of the nurse practitioner's 
275.23 	license as a registered nurse, as defined in section 148.171;
275.24 	(21) (20) services of a certified public health nurse or a registered nurse practicing 
275.25 	in a public health nursing clinic that is a department of, or that operates under the direct 
275.26 	authority of, a unit of government, if the service is within the scope of practice of the 
275.27 	public health nurse's license as a registered nurse, as defined in section 148.171; and
275.28 	(22) (21) telemedicine consultations, to the extent they are covered under section 
275.29 	256B.0625, subdivision 3b; and.
275.30 	(23) mental health telemedicine and psychiatric consultation as covered under 
275.31 	section 256B.0625, subdivisions 46 and 48.
275.32 	(ii) Effective October 1, 2003, for a person who is eligible under subdivision 3, 
275.33 	paragraph (a), clause (2), item (ii), general assistance medical care coverage is limited 
275.34 	to inpatient hospital services, including physician services provided during the inpatient 
275.35 	hospital stay. A $1,000 deductible is required for each inpatient hospitalization.
276.1 	(b) Effective August 1, 2005, sex reassignment surgery is not covered under this 
276.2 	subdivision.
276.3 	(c) In order to contain costs, the commissioner of human services shall select 
276.4 	vendors of medical care who can provide the most economical care consistent with high 
276.5 	medical standards and shall where possible contract with organizations on a prepaid 
276.6 	capitation basis to provide these services. The commissioner shall consider proposals by 
276.7 	counties and vendors for prepaid health plans, competitive bidding programs, block grants, 
276.8 	or other vendor payment mechanisms designed to provide services in an economical 
276.9 	manner or to control utilization, with safeguards to ensure that necessary services are 
276.10 	provided. Before implementing prepaid programs in counties with a county operated or 
276.11 	affiliated public teaching hospital or a hospital or clinic operated by the University of 
276.12 	Minnesota, the commissioner shall consider the risks the prepaid program creates for the 
276.13 	hospital and allow the county or hospital the opportunity to participate in the program in a 
276.14 	manner that reflects the risk of adverse selection and the nature of the patients served by 
276.15 	the hospital, provided the terms of participation in the program are competitive with the 
276.16 	terms of other participants considering the nature of the population served. Payment for 
276.17 	services provided pursuant to this subdivision shall be as provided to medical assistance 
276.18 	vendors of these services under sections 256B.02, subdivision 8, and 256B.0625. For 
276.19 	payments made during fiscal year 1990 and later years, the commissioner shall consult 
276.20 	with an independent actuary in establishing prepayment rates, but shall retain final control 
276.21 	over the rate methodology.
276.22 	(d) Recipients eligible under subdivision 3, paragraph (a), shall pay the following 
276.23 	co-payments for services provided on or after October 1, 2003:
276.24 	(1) $25 for eyeglasses;
276.25 	(2) $25 for nonemergency visits to a hospital-based emergency room;
276.26 	(3) $3 per brand-name drug prescription and $1 per generic drug prescription, 
276.27 	subject to a $12 per month maximum for prescription drug co-payments. No co-payments 
276.28 	shall apply to antipsychotic drugs when used for the treatment of mental illness; and
276.29 	(4) 50 percent coinsurance on restorative dental services.
276.30 	(e) Co-payments shall be limited to one per day per provider for nonpreventive visits, 
276.31 	eyeglasses, and nonemergency visits to a hospital-based emergency room. Recipients of 
276.32 	general assistance medical care are responsible for all co-payments in this subdivision. 
276.33 	The general assistance medical care reimbursement to the provider shall be reduced by 
276.34 	the amount of the co-payment, except that reimbursement for prescription drugs shall not 
276.35 	be reduced once a recipient has reached the $12 per month maximum for prescription 
276.36 	drug co-payments. The provider collects the co-payment from the recipient. Providers 
277.1 	may not deny services to recipients who are unable to pay the co-payment, except as 
277.2 	provided in paragraph (f).
277.3 	(f) If it is the routine business practice of a provider to refuse service to an individual 
277.4 	with uncollected debt, the provider may include uncollected co-payments under this 
277.5 	section. A provider must give advance notice to a recipient with uncollected debt before 
277.6 	services can be denied.
277.7 	(g) Any county may, from its own resources, provide medical payments for which 
277.8 	state payments are not made.
277.9 	(h) Chemical dependency services that are reimbursed under chapter 254B must not 
277.10 	be reimbursed under general assistance medical care.
277.11 	(i) The maximum payment for new vendors enrolled in the general assistance 
277.12 	medical care program after the base year shall be determined from the average usual and 
277.13 	customary charge of the same vendor type enrolled in the base year.
277.14 	(j) The conditions of payment for services under this subdivision are the same as the 
277.15 	conditions specified in rules adopted under chapter 256B governing the medical assistance 
277.16 	program, unless otherwise provided by statute or rule.
277.17 	(k) Inpatient and outpatient payments shall be reduced by five percent, effective July 
277.18 	1, 2003. This reduction is in addition to the five percent reduction effective July 1, 2003, 
277.19 	and incorporated by reference in paragraph (i).
277.20 	(l) Payments for all other health services except inpatient, outpatient, and pharmacy 
277.21 	services shall be reduced by five percent, effective July 1, 2003.
277.22 	(m) Payments to managed care plans shall be reduced by five percent for services 
277.23 	provided on or after October 1, 2003.
277.24 	(n) A hospital receiving a reduced payment as a result of this section may apply the 
277.25 	unpaid balance toward satisfaction of the hospital's bad debts.
277.26 	(o) Fee-for-service payments for nonpreventive visits shall be reduced by $3 
277.27 	for services provided on or after January 1, 2006. For purposes of this subdivision, a 
277.28 	visit means an episode of service which is required because of a recipient's symptoms, 
277.29 	diagnosis, or established illness, and which is delivered in an ambulatory setting by 
277.30 	a physician or physician ancillary, chiropractor, podiatrist, advance practice nurse, 
277.31 	audiologist, optician, or optometrist.
277.32 	(p) Payments to managed care plans shall not be increased as a result of the removal 
277.33 	of the $3 nonpreventive visit co-payment effective January 1, 2006.
277.34 	(q) Payments for mental health services added as covered benefits after December 
277.35 	31, 2006, are not subject to the reductions in paragraphs (i), (k), (l), and (m).

278.1 	EFFECTIVE DATE. This section is effective January 1, 2007, except mental 
278.2 	health case management under paragraph (a)(i)(15) is effective January 1, 2008.

278.3 	Sec. 20. Minnesota Statutes 2005 Supplement, section 256L.03, subdivision 1, is 
278.4 	amended to read:
278.5 		Subdivision 1.Covered health services. For individuals under section 256L.04, 
278.6 	subdivision 7, with income no greater than 75 percent of the federal poverty guidelines 
278.7 	or for families with children under section 256L.04, subdivision 1, all subdivisions of 
278.8 	this section apply. "Covered health services" means the health services reimbursed 
278.9 	under chapter 256B, with the exception of inpatient hospital services, special education 
278.10 	services, private duty nursing services, adult dental care services other than services 
278.11 	covered under section 256B.0625, subdivision 9, orthodontic services, nonemergency 
278.12 	medical transportation services, personal care assistant and case management services, 
278.13 	nursing home or intermediate care facilities services, inpatient mental health services, 
278.14 	and chemical dependency services. Outpatient mental health services covered under the 
278.15 	MinnesotaCare program are limited to diagnostic assessments, psychological testing, 
278.16 	explanation of findings, mental health telemedicine, psychiatric consultation, medication 
278.17 	management by a physician, day treatment, partial hospitalization, and individual, family, 
278.18 	and group psychotherapy.
278.19 	No public funds shall be used for coverage of abortion under MinnesotaCare 
278.20 	except where the life of the female would be endangered or substantial and irreversible 
278.21 	impairment of a major bodily function would result if the fetus were carried to term; or 
278.22 	where the pregnancy is the result of rape or incest.
278.23 	Covered health services shall be expanded as provided in this section.

278.24 	EFFECTIVE DATE. This section is effective January 1, 2007, except mental 
278.25 	health case management under subdivision 1 is effective January 1, 2008.

278.26 	Sec. 21. Minnesota Statutes 2005 Supplement, section 256L.035, is amended to read:
278.27 	256L.035 LIMITED BENEFITS COVERAGE FOR CERTAIN SINGLE 
278.28 	ADULTS AND HOUSEHOLDS WITHOUT CHILDREN.
278.29 	(a) "Covered health services" for individuals under section 256L.04, subdivision 
278.30 	7, with income above 75 percent, but not exceeding 175 percent, of the federal poverty 
278.31 	guideline means:
278.32 	(1) inpatient hospitalization benefits with a ten percent co-payment up to $1,000 and 
278.33 	subject to an annual limitation of $10,000;
279.1 	(2) physician services provided during an inpatient stay; and
279.2 	(3) physician services not provided during an inpatient stay; outpatient hospital 
279.3 	services; freestanding ambulatory surgical center services; chiropractic services; lab and 
279.4 	diagnostic services; diabetic supplies and equipment; mental health services as covered 
279.5 	under chapter 256B; and prescription drugs; subject to the following co-payments:
279.6 	(i) $50 co-pay per emergency room visit;
279.7 	(ii) $3 co-pay per prescription drug; and
279.8 	(iii) $5 co-pay per nonpreventive visit.
279.9 	The services covered under this section may be provided by a physician, physician 
279.10 	ancillary, chiropractor, psychologist, or licensed independent clinical social worker, or 
279.11 	other mental health providers covered under chapter 256B if the services are within the 
279.12 	scope of practice of that health care professional.
279.13 	For purposes of this section, "a visit" means an episode of service which is required 
279.14 	because of a recipient's symptoms, diagnosis, or established illness, and which is delivered 
279.15 	in an ambulatory setting by any health care provider identified in this paragraph.
279.16 	Enrollees are responsible for all co-payments in this section.
279.17 	(b) Reimbursement to the providers shall be reduced by the amount of the 
279.18 	co-payment, except that reimbursement for prescription drugs shall not be reduced once a 
279.19 	recipient has reached the $20 per month maximum for prescription drug co-payments. 
279.20 	The provider collects the co-payment from the recipient. Providers may not deny services 
279.21 	to recipients who are unable to pay the co-payment, except as provided in paragraph (c).
279.22 	(c) If it is the routine business practice of a provider to refuse service to an individual 
279.23 	with uncollected debt, the provider may include uncollected co-payments under this 
279.24 	section. A provider must give advance notice to a recipient with uncollected debt before 
279.25 	services can be denied.

279.26 	EFFECTIVE DATE. This section is effective January 1, 2007, except mental 
279.27 	health case management under paragraph (a), clause (3), is effective January 1, 2008.

279.28 	Sec. 22. Minnesota Statutes 2004, section 256L.12, subdivision 9a, is amended to read:
279.29 		Subd. 9a.Rate setting; ratable reduction. For services rendered on or after 
279.30 	October 1, 2003, the total payment made to managed care plans under the MinnesotaCare 
279.31 	program is reduced 1.0 percent. This provision excludes payments for mental health 
279.32 	services added as covered benefits after December 31, 2006.

280.1 	Sec. 23. MENTAL HEALTH PILOT PROGRAM FOR UNSHELTERED 
280.2 	INDIVIDUALS.
 280.3 		Subdivision 1.Pilot project program components. The commissioner of human 
280.4 	services shall establish two pilot projects, one in Ramsey County and one in Hennepin 
280.5 	County, which shall:
280.6 	(1) operate two ten-bed facilities in separate locations;
280.7 	(2) provide community support to individuals who have been living homeless for at 
280.8 	least one year;
280.9 	(3) provide 24-hour supervision; and
280.10 	(4) provide on-site mental health services which focus on the mental health needs of 
280.11 	individuals who have lived unsheltered.
280.12 		Subd. 2.Group residential housing. Notwithstanding Minnesota Statutes, section 
280.13 	256I.05, subdivisions 1a and 1c, a county agency shall negotiate a supplementary rate in 
280.14 	addition to the rate specified in Minnesota Statutes, section 256I.05, subdivision 1, not to 
280.15 	exceed $700 per month, including any legislatively authorized inflationary adjustments for 
280.16 	a group residential program that meets the components under subdivision 1, and for the 
280.17 	independent living component of the program under subdivision 3.
280.18 		Subd. 3.Independent living. An individual who has lived in one of the facilities 
280.19 	under subdivision 1, and who is being transitioned to independent living as part of the 
280.20 	program plan, continues to be eligible for group residential housing and the supplementary 
280.21 	service rate negotiated with the county under subdivision 2.
280.22 		Subd. 4.Effective date. This section is effective July 1, 2006, through June 30, 
280.23 	2008.

280.24 	Sec. 24. RECOMMENDATIONS ON CHANGING THE CONSOLIDATED 
280.25 	CHEMICAL DEPENDENCY TREATMENT FUND.
 280.26 	The commissioner shall report to the legislature by January 15, 2007, on 
280.27 	recommendations which analyze the merits of changing the statutory maintenance of 
280.28 	effort provisions in the chemical dependency treatment fund.

280.29 	Sec. 25. PLAN FOR IMPROVING COMMUNITY-BASED SUBSTANCE 
280.30 	ABUSE TREATMENT AND OTHER ISSUES RELATED TO IMPROVING 
280.31 	CHEMICAL HEALTH.
 280.32 	(a) The commissioner of human services shall present a plan to the senate and 
280.33 	house of representatives committees having jurisdiction over substance abuse treatment 
281.1 	issues by January 15, 2007, for improving the availability of community-based substance 
281.2 	abuse treatment.
281.3 	(b) The commissioner of human services shall also report back to the senate and 
281.4 	house of representatives committees having jurisdiction over substance abuse treatment 
281.5 	issues by January 15, 2007, on the merits, feasibility, and cost of:
281.6 	(1) posting treatment program peer reviews at an online location where they can be 
281.7 	viewed by agencies that make client placements;
281.8 	(2) annually distributing information to chemical health assessors on best practices 
281.9 	in assessments, including model instruments for adults and adolescents;
281.10 	(3) monitoring the compliance of local agencies with assessment and referral rules;
281.11 	(4) working with the commissioner of health to develop guidelines and training 
281.12 	materials for health care organizations on the use of brief interventions for alcohol abuse;
281.13 	(5) providing local agencies with examples of best practices for addressing needs of 
281.14 	persons being considered for repeat placements into publicly funded treatment;
281.15 	(6) identifying best practices to help local agencies monitor the progress of clients 
281.16 	placed in treatment; and
281.17 	(7) periodically providing local agencies with statewide information on treatment 
281.18 	outcomes.

281.19 	Sec. 26. REVISOR'S INSTRUCTION.
 281.20 	In the next edition of Minnesota Statutes, the revisor of statutes shall change the 
281.21 	reference to sections 245.487 to 245.4887, the Children's Mental Health Act, wherever it 
281.22 	appears in statutes or rules to sections 245.487 to 245.4889.

281.23 	Sec. 27.  REPEALER.
 281.24 	Minnesota Statutes 2004, sections 245.465, subdivision 2; 256B.0945, subdivisions 
281.25 	5, 6, 7, 8, and 9; and 256B.83, are repealed.

281.26 	ARTICLE 24
281.27 	HEALTH AND HUMAN SERVICES APPROPRIATIONS

281.28	Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
281.29 	The sums shown in the columns marked "APPROPRIATIONS" are added to or, if 
281.30 	shown in parentheses, subtracted from the appropriations in Laws 2005, First Special 
281.31 	Session chapter 4, article 9, or other law to the agencies and for the purposes specified 
281.32 	in this article.  The appropriations are from the general fund or another named fund and 
281.33 	are available for the fiscal years indicated for each purpose.  The figures "2006" and 
282.1 	"2007" used in this article mean that the addition to or subtraction from the appropriation 
282.2 	listed under them is available for the fiscal year ending June 30, 2006, or June 30, 
282.3 	2007, respectively. "The first year" is fiscal year 2006. "The second year" is fiscal year 
282.4 	2007. "The biennium" is fiscal years 2006 and 2007.  Supplementary appropriations and 
282.5 	reductions to appropriations for the fiscal year ending June 30, 2006, are effective the 
282.6 	day following final enactment.

282.7	SUMMARY BY FUND
	
282.8			2006
		2007
		TOTAL
	
282.9	General
	$
	26,673,000
	$
	66,463,000
	$
	93,136,000
	
282.10	Health Care Access
		-0-
		38,881,000
		38,881,000
	
282.11	Special Revenue
		514,000
		762,000
		1,276,000
	
282.12	Federal TANF
		7,484,000
		11,748,000
		19,232,000
	
282.13	TOTAL
	$
	34,671,000
	$
	117,854,000
	$
	152,525,000

282.14				APPROPRIATIONS
	
282.15				Available for the Year
	
282.16				Ending June 30
	
282.17					2006
		2007

282.18
282.19	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

282.20	Subdivision 1.Total Appropriation
 	$
	31,709,000
	$
	100,608,000

282.21	Summary by Fund
	
282.22	General 
	24,225,000
	59,393,000
	
282.23	Health Care Access
	-0-
	29,467,000
	
282.24	TANF
	7,484,000
	11,748,000
	
282.25 	SPECIAL REVENUE FUND 
282.26 	TRANSFER. Notwithstanding any law to 
282.27 	the contrary, excluding accounts authorized 
282.28 	under Minnesota Statutes, section 16A.1286, 
282.29 	and Minnesota Statutes, chapter 245B, the 
282.30 	commissioner shall transfer $900,000 in 
282.31 	fiscal year 2007 of uncommitted special 
282.32 	revenue fund balances to the general fund. 
283.1 	The actual transfers shall be identified within 
283.2 	the standard information provided to the 
283.3 	chairs of the legislative committees with 
283.4 	jurisdiction over health and human services 
283.5 	issues in December 2006.
283.6 	TANF MAINTENANCE OF EFFORT.
283.7 	Notwithstanding Laws 2005, First Special 
283.8 	Session chapter 4, article 9, section 2, 
283.9 	subdivision 1, the commissioner shall ensure 
283.10 	that for fiscal year 2007, the maintenance of 
283.11 	effort used by the commissioner of finance 
283.12 	for the February and November forecasts 
283.13 	required under Minnesota Statutes, section 
283.14 	16A.103, contains expenditures under the 
283.15 	TANF/MOE rider, paragraph (a), clause (1), 
283.16 	in Laws 2005, First Special Session chapter 
283.17 	4, article 9, section 2, subdivision 1, equal to 
283.18 	at least 21 percent of the total required under 
283.19 	Code of Federal Regulations, title 45, section 
283.20 	263.1.
283.21 	INCREASED WORKING FAMILY 
283.22 	CREDIT EXPENDITURES TO BE 
283.23 	CLAIMED FOR TANF MAINTENANCE 
283.24 	OF EFFORT. In addition to the amounts 
283.25 	provided in Laws 2005, First Special 
283.26 	Session chapter 4, article 9, section 2, 
283.27 	subdivision 1, the commissioner may count 
283.28 	the following amounts of working family 
283.29 	credit expenditure as TANF maintenance of 
283.30 	effort:
283.31 	(1) fiscal year 2006, $9,858,000;
283.32 	(2) fiscal year 2007, $10,936,000;
283.33 	(3) fiscal year 2008, $42,495,000; and
283.34 	(4) fiscal year 2009, $42,502,000.
284.1 	Notwithstanding any contrary provision in 
284.2 	this article, this paragraph shall expire on 
284.3 	June 30, 2009.
284.4 	CHILD CARE AND DEVELOPMENT 
284.5 	FUND; FEDERAL DEFICIT 
284.6 	REDUCTION ACT OF 2005. Increased 
284.7 	child care funds from the federal Deficit 
284.8 	Reduction Act of 2005 may be allocated by 
284.9 	the commissioner for the basic sliding fee 
284.10 	child care program.

284.11
284.12	Subd.  2.Children and Economic Assistance 
Grants

284.13	Summary by Fund
	
284.14	General Fund
	(7,854,000)
	9,433,000
	
284.15	Federal TANF
	7,484,000
	11,456,000

284.16	(a) MFIP/DWP Grants

284.17	General 
	(7,484,000)
	7,484,000
	
284.18	Federal TANF
	7,484,000
	(4,803,000)

284.19	(b) MFIP Child Care Grants

284.20	TANF
	-0-
	16,119,000

284.21	(c) Children's Services Grants
		-0-
		2,223,000
	
284.22 	PROVIDER RATE FREEZE 
284.23 	ELIMINATION. Of the TANF fund 
284.24 	appropriation, $15,888,000 in fiscal year 
284.25 	2007 is to eliminate the provider rate freeze 
284.26 	in Minnesota Statutes, section 119B.13, 
284.27 	subdivision 1; provide an accreditation 
284.28 	incentive under Minnesota Statutes, 
284.29 	section 119B.13, subdivision 3a; repeal the 
284.30 	limitations on payments for absent days 
285.1 	in Minnesota Statutes, section 119B.13, 
285.2 	subdivision 7; and reduce co-payments. 
285.3 	Effective July 1, 2007, these costs shall be 
285.4 	paid from the general fund. Notwithstanding 
285.5 	any section in this article to the contrary, this 
285.6 	paragraph shall not expire.
285.7 	SUBSIDIZED HOUSING PENALTY 
285.8 	REPORT. By February 15, 2007, the 
285.9 	commissioner shall report to the legislature 
285.10 	on the results of suspending the $50 
285.11 	MFIP subsidized housing penalty and with 
285.12 	recommendations on funding sources to 
285.13 	continue this suspension after June 30, 2007.
285.14 	CHILDREN'S SERVICES GRANTS 
285.15 	BASE LEVEL ADJUSTMENT. The 
285.16 	general fund base for children's services 
285.17 	grants shall be increased by $7,964,000 in 
285.18 	fiscal year 2008 and $7,964,000 in fiscal year 
285.19 	2009.
285.20 	CHILDREN'S AND COMMUNITY 
285.21 	SERVICES GRANTS. Notwithstanding 
285.22 	Minnesota Statutes, section 256M.50, 
285.23 	supplemental social service block grant funds 
285.24 	of $153,936 appropriated under the federal 
285.25 	2005 Department of Defense Appropriations 
285.26 	Act, Public Law 109-148, shall be allocated 
285.27 	proportionately to those counties that served 
285.28 	hurricane evacuees and reported those 
285.29 	services on the Social Service Information 
285.30 	System.
285.31 	CHILDREN'S AND COMMUNITY 
285.32 	SERVICES GRANTS BASE LEVEL 
285.33 	ADJUSTMENT. The general fund base for 
285.34 	children's and community services grants 
286.1 	shall be decreased by $2,849,000 in fiscal 
286.2 	year 2009.
286.3 	BASIC SLIDING FEE ALLOCATIONS; 
286.4 	CONVERSION TO AUTOMATED 
286.5 	PAYMENT SYSTEM. As determined by 
286.6 	the commissioner, counties may use up to six 
286.7 	percent of either calendar year 2008 or 2009 
286.8 	allocations under Minnesota Statutes, section 
286.9 	119B.03, to fund accelerated payments that 
286.10 	may occur during the preceding calendar 
286.11 	year during conversion to the automated 
286.12 	child care assistance program system. If 
286.13 	conversion occurs over two calendar years, 
286.14 	counties may use up to three percent of the 
286.15 	combined calendar year allocations to fund 
286.16 	accelerated payments. Funding advanced 
286.17 	under this paragraph shall be considered part 
286.18 	of the allocation from which it was originally 
286.19 	advanced for purposes of setting future 
286.20 	allocations under Minnesota Statutes, section 
286.21 	119B.03, subdivisions 6, 6a, 6b, and 8, and 
286.22 	shall include funding for administrative costs 
286.23 	under Minnesota Statutes, section 119B.15. 
286.24 	Notwithstanding any contrary provisions in 
286.25 	this article, this paragraph shall sunset on 
286.26 	December 31, 2009.

286.27
286.28	(d) Other Children's and Economic Assistance 
Grants

286.29	General
	(370,000)
	(452,000)
	
286.30	Federal TANF
	-0-
	140,000
	
286.31 	OTHER CHILDREN'S AND 
286.32 	ECONOMIC ASSISTANCE GRANTS 
286.33 	BASE LEVEL ADJUSTMENT. The 
286.34 	general fund base for other children's and 
287.1 	economic assistance grants shall be increased 
287.2 	by $20,000 in fiscal year 2008 and by 
287.3 	$20,000 in fiscal year 2009.
287.4 	NEW CHANCE PROGRAM 
287.5 	APPROPRIATION. Of the general fund 
287.6 	appropriation, $140,000 for fiscal year 
287.7 	2007 is for a grant to the new chance 
287.8 	program.  The new chance program shall 
287.9 	provide comprehensive services through a 
287.10 	private, nonprofit agency to young parents in 
287.11 	Hennepin County who have dropped out of 
287.12 	school and are receiving public assistance. 
287.13 	The program administrator shall report 
287.14 	annually to the commissioner of human 
287.15 	services on skills development, education, 
287.16 	job training, and job placement outcomes 
287.17 	for program participants. This appropriation 
287.18 	shall become part of base level funding for 
287.19 	the biennium beginning July 1, 2007.
287.20 	FOOD PROGRAM SURPLUS 
287.21 	REDUCTION. The general fund base 
287.22 	for the Minnesota food assistance program is 
287.23 	reduced by $370,000 in fiscal year 2006 and 
287.24 	by $452,000 in fiscal year 2007.

287.25	(e) Group Residential Housing Grants
		-0-
		168,000

287.26
287.27	Subd.  3. Children and Economic Assistance 
Management

287.28	Summary by Fund
	
287.29	General
	9,000
	26,000
	
287.30	Federal TANF
	-0-
	292,000

287.31
287.32	(a) Children and Economic Assistance 
Administration

288.1	General
	-0-
	7,000
	
288.2	Federal TANF
	-0-
	51,000

288.3
288.4	(b) Children and Economic Assistance 
Operations

288.5	General
	9,000
	19,000
	
288.6	Federal TANF
	-0-
	241,000
	
288.7 	CHILDREN AND ECONOMIC 
288.8 	ASSISTANCE OPERATIONS BASE 
288.9 	LEVEL ADJUSTMENT. The general fund 
288.10 	base for children and economic assistance 
288.11 	operations shall be decreased by $19,000 in 
288.12 	fiscal year 2008 and by $19,000 in fiscal year 
288.13 	2009.
288.14 	CHILDREN AND ECONOMIC 
288.15 	ASSISTANCE OPERATIONS TANF 
288.16 	BASE LEVEL ADJUSTMENT. The TANF 
288.17 	base for children and economic assistance 
288.18 	operations shall be decreased by $241,000 
288.19 	in fiscal year 2008 and by $241,000 in fiscal 
288.20 	year 2009.

288.21	Subd.  4.Health Care Grants

288.22	Summary by Fund
	
288.23	General
	-0-
	4,439,000
	
288.24	Health Care Access
	-0-
	25,806,000

288.25	(a) MinnesotaCare Grants

288.26	Health Care Access
	-0-
	8,304,000
	
288.27 	TRANSFER TO MINNESOTA 
288.28 	PHARMACY ACCESS ACCOUNT.
288.29 	Notwithstanding Minnesota Statutes, 
288.30 	section 295.581, the commissioner of 
289.1 	finance shall transfer $1,925,000 from the 
289.2 	health care access fund to the Minnesota 
289.3 	pharmacy access account in fiscal year 
289.4 	2008 and $916,000 in fiscal year 2009. 
289.5 	Notwithstanding any provision in this article 
289.6 	to the contrary, this paragraph shall expire 
289.7 	on June 30, 2009.
289.8 	PAY FOR PERFORMANCE.
289.9 	The commissioner shall provide 
289.10 	recommendations to the legislature by 
289.11 	January 15, 2007, to make payments for 
289.12 	the optimum care of persons with diabetes 
289.13 	consistent with the percentage enrollment of 
289.14 	persons with diabetes in Minnesota health 
289.15 	care programs, beginning on July 1, 2007.

289.16
289.17	(b) Medical Assistance Basic Health Care - 
Families and Children

289.18	General 
	-0-
	75,000
	
289.19	Health Care Access
	-0-
	3,532,000

289.20
289.21	(c) Medical Assistance Basic Health Care - 
Elderly and Disabled

289.22	General 
	-0-
	(472,000)
	
289.23	Health Care Access
	-0-
	11,420,000
	
289.24 	ENHANCED RATES FOR MENTAL 
289.25 	HEALTH SERVICES. The reimbursement 
289.26 	rate increases effective July 1, 2007, under 
289.27 	Minnesota Statutes, section 256B.763, 
289.28 	for outpatient mental health services that 
289.29 	currently have long waiting lists and other 
289.30 	access problems shall be equalized for mental 
289.31 	health providers in all Minnesota health care 
289.32 	programs.

290.1	(d) General Assistance Medical Care
		-0-
		4,836,000

290.2	(e) Other Health Care Grants

290.3	Health Care Access
	-0-
	2,550,000
	
290.4 	DENTAL GRANTS. Of the health care 
290.5 	access fund appropriation, $300,000 in fiscal 
290.6 	year 2007 is for grants to nonprofit dental 
290.7 	providers under Minnesota Statutes, section 
290.8 	256B.76, paragraph (d). This appropriation 
290.9 	shall become part of base level funding for 
290.10 	the biennium beginning July 1, 2007.
290.11 	CRITICAL ACCESS DENTAL 
290.12 	PROVIDERS. (a) Of the health care access 
290.13 	fund appropriation, $3,532,000 in fiscal 
290.14 	year 2007 only is for critical access dental 
290.15 	provider rates and $78,000 is for related 
290.16 	administrative costs.
290.17 	(b) Notwithstanding Minnesota Statutes, 
290.18 	section 256B.76, paragraph (c), effective for 
290.19 	dental services provided between October 1, 
290.20 	2006, and June 30, 2007, the commissioner 
290.21 	shall increase reimbursement rates for 
290.22 	dentists and dental clinics deemed to be 
290.23 	critical access dental providers by 38 percent 
290.24 	above the reimbursement rate that would 
290.25 	otherwise be paid to the provider. Payments 
290.26 	to prepaid health plans made on or after 
290.27 	January 1, 2007, shall be adjusted to reflect 
290.28 	these increases.
290.29 	(c) By February 15, 2007, the commissioner 
290.30 	shall report to the legislature on the results 
290.31 	of higher payments to critical access dental 
290.32 	providers and with recommendations on 
291.1 	funding sources to continue these higher 
291.2 	payments in effect after June 30, 2007.
291.3 	INTENSIVE CARE MANAGEMENT. (a) 
291.4 	Of the health care access fund appropriation, 
291.5 	$1,505,000 for fiscal year 2007 is for the 
291.6 	intensive care management pilot program 
291.7 	established under Minnesota Statutes, section 
291.8 	256B.075, subdivision 2, paragraph (d), of 
291.9 	which $5,000 is for systems costs and the 
291.10 	remainder is to be distributed as follows:
291.11 	(1) $300,000 is to be paid under a contract 
291.12 	with the neighborhood health care network 
291.13 	for the community care network project that 
291.14 	consists of a network of safety net clinics and 
291.15 	health centers working in cooperation with 
291.16 	a safety net hospital, a health plan, and the 
291.17 	Department of Human Services to improve 
291.18 	care coordination services;
291.19 	(2) of the balance remaining after the 
291.20 	payment made under clause (1), 60 percent 
291.21 	shall be paid in grants to federally qualified 
291.22 	health centers, as defined in Minnesota 
291.23 	Statutes, section 256B.075, subdivision 2, 
291.24 	paragraph (d), in proportion to each center's 
291.25 	amount of discounts granted to patients 
291.26 	during calendar year 2005 as reported on 
291.27 	the federal Uniform Data Systems report in 
291.28 	conformance with the Bureau of Primary 
291.29 	Health Care Program Expectations Policy 
291.30 	Information Notice 98-23, except that each 
291.31 	eligible federally qualified health center shall 
291.32 	receive at least $10,000 but no more than 
291.33 	20 percent of the total amount of money 
291.34 	available under this clause; 
292.1 	(3) the balance remaining after the payments 
292.2 	made under clauses (1) and (2) shall be paid 
292.3 	in grants to community clinics, as defined 
292.4 	in Minnesota Statutes, section 256B.075, 
292.5 	subdivision 2, paragraph (d), to be distributed 
292.6 	based on each clinic's proportionate amount 
292.7 	of contribution to patients as determined in 
292.8 	accordance with the clinic's formal policy for 
292.9 	sliding fee discounts approved by the clinic's 
292.10 	board of directors, as reported by each clinic, 
292.11 	except that each eligible community clinic 
292.12 	shall receive at least $10,000 but no more 
292.13 	than 20 percent of the total amount of money 
292.14 	available under this clause; and 
292.15 	(4) the commissioner shall pay the amounts 
292.16 	at the beginning of the fiscal year, even if 
292.17 	federal approval has not yet been granted.
292.18 	(b) Base level funding for this activity shall 
292.19 	be $1,500,000 each year for the biennium 
292.20 	beginning July 1, 2007.
292.21 	MINNESOTACARE OUTREACH. Of 
292.22 	the health care access fund appropriation, 
292.23 	$750,000 in fiscal year 2007 is for the 
292.24 	MinnesotaCare outreach grants under 
292.25 	Minnesota Statutes, section 256L.04, 
292.26 	subdivision 4. 
292.27 	MINNESOTACARE OUTREACH 
292.28 	REIMBURSEMENT. Federal 
292.29 	administrative reimbursement resulting from 
292.30 	MinnesotaCare outreach is appropriated to 
292.31 	the commissioner for this activity.

292.32	Subd.  5.Health Care Management

293.1	Summary by Fund
	
293.2	General
	-0-
	1,508,000
	
293.3	Health Care Access
	-0-
	3,661,000

293.4	(a) Health Care Administration

293.5	General
	-0-
	1,428,000
	
293.6	Health Care Access
	-0-
	843,000
	
293.7 	HEALTH CARE ADMINISTRATION 
293.8 	HEALTH CARE ACCESS BASE LEVEL 
293.9 	ADJUSTMENT. The health care access 
293.10 	fund base for health care administration shall 
293.11 	be increased by $420,000 in fiscal year 2008 
293.12 	and shall be decreased by $7,000 in fiscal 
293.13 	year 2009.
293.14 	HEALTH CARE ADMINISTRATION 
293.15 	BASE LEVEL ADJUSTMENT.
293.16 	The general fund base for health care 
293.17 	administration shall be increased by 
293.18 	$195,000 in fiscal year 2008 and shall be 
293.19 	decreased by $382,000 in fiscal year 2009.

293.20	(b) Health Care Operations

293.21	General
	-0-
	80,000
	
293.22	Health Care Access
	-0-
	2,818,000
	
293.23 	HEALTHMATCH DELAY. The 
293.24 	commissioner shall delay implementation of 
293.25 	the HealthMatch program by two months. 
293.26 	Of the health care access fund appropriation, 
293.27 	$929,000 in fiscal year 2007 is for the 
293.28 	administrative costs of the two-month delay.
293.29 	HEALTH CARE OPERATIONS BASE 
293.30 	LEVEL ADJUSTMENT. The general fund 
293.31 	base for health care operations shall be 
294.1 	decreased by $38,000 in fiscal year 2008 and 
294.2 	increased by $32,000 in fiscal year 2009.
294.3 	HEALTH CARE OPERATIONS 
294.4 	HEALTH CARE ACCESS FUND BASE 
294.5 	LEVEL ADJUSTMENT. The health care 
294.6 	access fund base for health care operations 
294.7 	shall be increased by $482,000 in fiscal year 
294.8 	2008 and $496,000 in fiscal year 2009.

294.9	Subd.  6.Continuing Care Grants

294.10	General
	1,500,000
	(1,522,000)

294.11	(a) Aging and Adult Grants

294.12	General
	-0-
	25,000
	
294.13 	MEDICARE PART D INFORMATION 
294.14 	AND ASSISTANCE REIMBURSEMENT.
294.15 	Federal administrative reimbursement 
294.16 	obtained from information and assistance 
294.17 	services provided by the Senior LinkAge or 
294.18 	Disability Linkage lines to people who are 
294.19 	identified as eligible for medical assistance 
294.20 	shall be appropriated to the commissioner 
294.21 	for this activity.
294.22 	AGING AND ADULT GRANTS BASE 
294.23 	LEVEL ADJUSTMENT. Base level 
294.24 	funding for aging and adult grants shall be 
294.25 	reduced in fiscal year 2008 by $25,000 and 
294.26 	by $25,000 in fiscal year 2009.

294.27	(b) Alternative Care Grants
		-0-
		3,337,000
	
294.28 	ALTERNATIVE CARE BASE LEVEL 
294.29 	ADJUSTMENT. Base level funding for 
294.30 	alternative care grants shall be reduced by 
294.31 	$1,737,000 in fiscal year 2008 and reduced 
294.32 	by $2,504,000 in fiscal year 2009.

295.1
295.2	(c) Medical Assistance Long-Term Care 
Facilities
		-0-
		(1,874,000)
	
295.3 	TEMPORARY RATE INCREASE. Of the 
295.4 	general fund appropriation, $29,000 in fiscal 
295.5 	year 2007 is for a temporary rate increase 
295.6 	equivalent to six percent of the operating rate 
295.7 	in effect on July 1, 2006, for a day training 
295.8 	and habilitation provider in Meeker County 
295.9 	providing services to up to 110 individuals. 
295.10 	This rate increase shall be in effect only until 
295.11 	June 30, 2007.

295.12
295.13	(d) Medical Assistance Long-Term Care 
Waivers
		-0-
		(415,000)
	
295.14 	ADDITIONAL WAIVER 
295.15 	ALLOCATIONS. Notwithstanding 
295.16 	the waiver growth limits in Laws 2005, 
295.17 	First Special Session chapter 4, article 9, 
295.18 	section 2, paragraph (d), the commissioner 
295.19 	may allocate an additional waiver allocation 
295.20 	under Minnesota Statutes, section 256B.49, 
295.21 	for a recipient of personal care assistant 
295.22 	services who is eligible for and chooses 
295.23 	waivered services and received personal care 
295.24 	assistant services from a provider who was 
295.25 	billing for a service delivery model for that 
295.26 	recipient other than individual or shared care 
295.27 	on March 1, 2006.

295.28	(e) Mental Health Grants
		-0-
		(2,595,000)
	
295.29 	MENTAL HEALTH GRANTS BASE 
295.30 	LEVEL ADJUSTMENT. The general 
295.31 	fund base for mental health grants shall be 
295.32 	decreased by $2,893,000 in fiscal year 2008 
295.33 	and $8,043,000 in fiscal year 2009.

296.1
296.2	(f) Chemical Dependency Nonentitlement 
Grants
		-0-
		-0-
	
296.3 	METHAMPHETAMINE 
296.4 	COORDINATOR. The following 
296.5 	amounts shall be transferred from the federal 
296.6 	chemical health block grant fund to the 
296.7 	commissioner of health for the fiscal years 
296.8 	indicated for the purposes of Minnesota 
296.9 	Statutes, section 144.90: $82,000 in fiscal 
296.10 	year 2007; $205,000 in fiscal year 2008; and 
296.11 	$205,000 in fiscal year 2009.

296.12	Subd.  7.Continuing Care Management

296.13	Summary by Fund
	
296.14	General
	-0-
	881,000
	
296.15	Health Care Access
	-0-
	-0-
	
296.16 	CONTINUING CARE MANAGEMENT 
296.17 	BASE LEVEL ADJUSTMENT. The 
296.18 	general fund base for continuing care 
296.19 	management shall be decreased by $200,000 
296.20 	in fiscal year 2008 and decreased by 
296.21 	$386,000 in fiscal year 2009.

296.22	Subd.  8.State-operated Services
 		30,570,000
		44,628,000
	
296.23 	STATE-OPERATED SERVICES BASE 
296.24 	LEVEL ADJUSTMENT. The general fund 
296.25 	base for state-operated services shall be 
296.26 	increased by $758,000 in fiscal year 2008 and 
296.27 	decreased by $3,694,000 in fiscal year 2009.
296.28 	MINNESOTA SECURITY HOSPITAL.
296.29 	For the purposes of enhancing the safety 
296.30 	of the public, improving supervision, and 
296.31 	enhancing community-based mental health 
296.32 	treatment, state-operated services may 
297.1 	establish additional community capacity 
297.2 	for providing treatment and supervision 
297.3 	of clients who have been ordered into a 
297.4 	less restrictive alternative of care from the 
297.5 	state-operated services transition services 
297.6 	program consistent with Minnesota Statutes, 
297.7 	section 246.014.
297.8 	MINNESOTA SECURITY HOSPITAL 
297.9 	DISCHARGE PLANNING. The 
297.10 	commissioner shall study the feasibility of 
297.11 	requiring the Minnesota Security Hospital 
297.12 	to take full responsibility for the provisional 
297.13 	discharge planning for patients moving from 
297.14 	the St. Peter Campus into the community 
297.15 	under the process outlined by Minnesota 
297.16 	Statutes, section 253B.18, subdivision 8. The 
297.17 	commissioner shall report the results of the 
297.18 	study to the legislature by January 15, 2007.
297.19 	STATE-OPERATED SERVICES 
297.20 	SALARY DEFICIT. The state-operated 
297.21 	services salary deficit of $6,833,000 in fiscal 
297.22 	year 2006 and $10,274,000 in fiscal year 
297.23 	2007 shall be absorbed by the Department of 
297.24 	Human Services, excluding state-operated 
297.25 	services.

297.26	Sec. 3. COMMISSIONER OF HEALTH

297.27	Subdivision 1.Total Appropriation
 		-0-
		12,064,000

297.28	Summary by Fund
	
297.29	General
	-0-
	2,510,000
	
297.30	Health Care Access Fund
	-0-
	9,414,000
	
297.31
297.32	State Government Special 
Revenue
	-0-
	140,000
	
298.1 	The appropriations in this section are added 
298.2 	to appropriations in Laws 2005, First Special 
298.3 	Session chapter 4, article 9, section 3.

298.4	Subd.  2.Health Protection

298.5	Summary by Fund
	
298.6	General
	-0-
	2,510,000
	
298.7
298.8	State Government Special 
Revenue Fund
	-0-
	140,000
	
298.9 	HEALTH PROTECTION BASE LEVEL 
298.10 	ADJUSTMENT. The general fund base 
298.11 	for health protection shall be decreased 
298.12 	by $2,510,000 in fiscal year 2008 and 
298.13 	$2,510,000 in fiscal year 2009.
298.14 	HEALTH PROTECTION STATE 
298.15 	GOVERNMENT SPECIAL REVENUE 
298.16 	BASE LEVEL ADJUSTMENT. The state 
298.17 	government special revenue fund base for 
298.18 	health protection shall be increased by 
298.19 	$140,000 in fiscal year 2008 and $140,000 in 
298.20 	fiscal year 2009.
298.21 	PANDEMIC INFLUENZA 
298.22 	PREPAREDNESS. (a) Of the 
298.23 	general fund appropriation, $2,510,000 in 
298.24 	fiscal year 2007 only is for preparation, 
298.25 	planning, and response to an outbreak of 
298.26 	influenza. Of this amount, $2,410,000 is 
298.27 	to purchase antivirals and supplies and 
298.28 	$100,000 is for mass clinic development and 
298.29 	planning, including training and technical 
298.30 	assistance for local public health.
298.31 	(b) By February 15, 2007, the commissioner 
298.32 	shall report to the legislature on the results 
298.33 	of funding for this initiative and with 
299.1 	recommendations on funding sources to 
299.2 	continue these activities after June 30, 2007.
299.3 	HIV/AIDS PREVENTION. (a) The 
299.4 	commissioner shall allocate $135,000 of the 
299.5 	federal HIV prevention grant to establish a 
299.6 	toll-free telephone line to provide information 
299.7 	and counseling on HIV/AIDS, contingent on 
299.8 	the approval of the Community Cooperative 
299.9 	Council on HIV/AIDS prevention.
299.10 	(b) The commissioner shall not cap HIV 
299.11 	prevention grants. Notwithstanding any 
299.12 	provision in this article to the contrary, this 
299.13 	paragraph shall not expire.

299.14	Subd.  3.Policy Compliance and Quality

299.15	Summary by Fund
	
299.16	Health Care Access Fund
	-0-
	9,414,000
	
299.17 	POLICY QUALITY AND 
299.18 	COMPLIANCE GENERAL 
299.19 	FUND BASE LEVEL ADJUSTMENT.
299.20 	The policy quality and compliance general 
299.21 	fund base shall be increased by $1,887,000 
299.22 	in fiscal year 2008 and $1,887,000 in fiscal 
299.23 	year 2009.
299.24 	POLICY QUALITY AND 
299.25 	COMPLIANCE HEALTH CARE 
299.26 	ACCESS FUND BASE LEVEL 
299.27 	ADJUSTMENT. The health care access 
299.28 	fund base for policy quality and compliance 
299.29 	shall be decreased by $9,121,000 in fiscal 
299.30 	year 2008 and $9,121,000 in fiscal year 2009.

299.31
299.32	Sec. 4. VETERANS NURSING HOMES 
BOARD
 		2,448,000
		4,560,000
	
300.1 	This appropriation is added to appropriations 
300.2 	in Laws 2005, First Special Session 
300.3 	chapter 4, article 9, section 4. Of this 
300.4 	appropriation, $1,868,000 in fiscal year 2006 
300.5 	and $2,159,000 in fiscal year 2007 is to 
300.6 	supplement nursing staff at the Minneapolis 
300.7 	facility. The board shall negotiate with 
300.8 	state bargaining units to address wages, 
300.9 	benefits, and the staffing skill mix in order 
300.10 	to appropriately serve the acuity level of 
300.11 	residents.
300.12 	BASE LEVEL ADJUSTMENT. The 
300.13 	general fund base for the board shall be 
300.14 	increased by $3,981,000 in fiscal year 2008 
300.15 	and $3,981,000 in fiscal year 2009.

300.16	Sec. 5. HEALTH-RELATED BOARDS

300.17
300.18	Subdivision 1.State Government Special 
Revenue
 		514,000
		622,000
	
300.19 	BASE LEVEL ADJUSTMENT. The state 
300.20 	government special revenue fund base for the 
300.21 	health-related boards shall be decreased by 
300.22 	$505,000 in fiscal year 2008 and $505,000 in 
300.23 	fiscal year 2009.

300.24	Subd.  2.Board of Chiropractic Examiners
 		5,000
		5,000
	
300.25 	BOARD OF CHIROPRACTIC 
300.26 	EXAMINERS APPROPRIATION 
300.27 	INCREASE. (a) This appropriation is 
300.28 	added to appropriations in Laws 2005, 
300.29 	First Special Session chapter 4, article 9, 
300.30 	section 5, subdivision 3. This is a onetime 
300.31 	appropriation.
301.1 	(b) This increase is to correct programming 
301.2 	difficulties incurred during implementation 
301.3 	of payment processing changes.

301.4	Subd.  3.Board of Dentistry
 		-0-
		67,000
	
301.5 	BOARD OF DENTISTRY 
301.6 	APPROPRIATION INCREASE.
301.7 	(a) This appropriation is added to 
301.8 	appropriations in Laws 2005, First Special 
301.9 	Session chapter 4, article 9, section 5, 
301.10 	subdivision 4.
301.11 	(b) This increase is to retain a legal analyst 
301.12 	as part of the board staff.

301.13	Subd.  4.Board of Medical Practice
 		500,000
		500,000
	
301.14 	BOARD OF MEDICAL PRACTICE 
301.15 	INCREASE. (a) This appropriation is 
301.16 	added to appropriations in Laws 2005, 
301.17 	First Special Session chapter 4, article 9, 
301.18 	section 5, subdivision 7. This is a onetime 
301.19 	appropriation. 
301.20 	(b)  This increase is to cover higher than 
301.21 	expected costs of investigation and legal 
301.22 	action.

301.23	Subd.  5.Board of Physical Therapy
 		9,000
		-0-
	
301.24 	BOARD OF PHYSICAL THERAPY 
301.25 	APPROPRIATION INCREASE. (a) This 
301.26 	appropriation is added to appropriations in 
301.27 	Laws 2005, First Special Session chapter 4, 
301.28 	article 9, section 5, subdivision 12. This is a 
301.29 	onetime appropriation.
301.30 	(b) This increase is to correct programming 
301.31 	difficulties incurred during implementation 
301.32 	of payment processing changes.

302.1	Subd.  6. Emergency Medical Services Board
 		-0-
		50,000
	
302.2 	EMERGENCY MEDICAL SERVICES 
302.3 	BOARD APPROPRIATION INCREASE.
302.4 	(a) This appropriation is added to 
302.5 	appropriations in Laws 2005, First Special 
302.6 	Session chapter 4, article 9, section 5, 
302.7 	subdivision 12.
302.8 	(b) This increase is to be spent by the health 
302.9 	professional service program from the state 
302.10 	government special revenue fund.

302.11	Sec. 6. ENDOWMENT FUND TRANSFERS
 					
302.12 	On June 30, 2006, the commissioner of 
302.13 	finance shall transfer the balances in the 
302.14 	tobacco use prevention and local public 
302.15 	health endowment fund and the medical 
302.16 	education endowment fund to the general 
302.17 	fund. These balances result from investment 
302.18 	income credited to the funds after the transfer 
302.19 	of balances on July 1, 2003. The amount 
302.20 	transferred under this section is estimated to 
302.21 	be $2,933,000.

302.22 	Sec. 7. Minnesota Statutes 2004, section 245.771, is amended by adding a subdivision 
302.23 	to read:
302.24 		Subd. 4.Food stamp bonus awards. In the event that Minnesota qualifies for 
302.25 	the United States Department of Agriculture Food and Nutrition Services Food Stamp 
302.26 	Program performance bonus awards, the funding is appropriated to the commissioner. The 
302.27 	commissioner shall retain 25 percent of the funding, with the other 75 percent divided 
302.28 	among the counties according to a formula that takes into account each county's impact 
302.29 	on state performance in the applicable bonus categories.

302.30 	Sec. 8. Minnesota Statutes 2004, section 256.01, is amended by adding a subdivision 
302.31 	to read:
303.1 		Subd. 24.Funding from other than state funds. Notwithstanding sections 
303.2 	16A.013 to 16A.016, the commissioner may accept, on behalf of the state, additional 
303.3 	funding from sources other than state funds for the purpose of financing the cost of 
303.4 	assistance program grants or nongrant administration. All additional funding under this 
303.5 	subdivision is appropriated to the commissioner for use as designated by the grantor of 
303.6 	funding.

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

303.10 	Sec. 10.  REPEALER.
 303.11 	Minnesota Statutes 2004, section 62J.694, subdivision 5, is repealed.