1.1 	A bill for an act
1.2 	relating to state government; making changes to health and human services 
1.3 	programs; changing children and family provisions; amending child welfare 
1.4 	provisions; establishing prekindergarten exploratory projects; modifying 
1.5 	licensing provisions; amending health care programs and policy; modifying 
1.6 	continuing care programs and policy; amending mental and chemical health 
1.7 	provisions; changing Department of Health provisions and policy; establishing 
1.8 	a children's health program; changing public health provisions and policy; 
1.9 	amending MinnesotaCare, medical assistance, and general assistance medical 
1.10 	care; instituting health care reform; modifying health insurance provisions; 
1.11 	establishing family supportive services; providing rate increases for certain 
1.12 	providers and nursing facilities; changing health records information provisions; 
1.13 	making technical changes; providing penalties; establishing task forces; changing 
1.14 	certain fees; requiring reports; making forecast adjustments; appropriating 
1.15 	money for human services and health; appropriating money for various state 
1.16 	boards and councils;amending Minnesota Statutes 2006, sections 13.381, 
1.17 	by adding a subdivision; 13.46, subdivision 2; 16A.724, subdivision 2, by 
1.18 	adding subdivisions; 16B.61, by adding a subdivision; 16D.13, subdivision 3; 
1.19 	43A.23, subdivision 1; 62E.02, subdivision 7; 62H.02; 62J.07, subdivisions 
1.20 	1, 3; 62J.17, subdivisions 2, 4a, 6a, 7; 62J.41, subdivision 1; 62J.495; 62J.52, 
1.21 	subdivisions 1, 2; 62J.60, subdivisions 2, 3; 62J.692, subdivisions 1, 4, 5, 8; 
1.22 	62J.81, subdivision 1; 62J.82; 62L.02, subdivision 11; 62Q.165, subdivisions 1, 
1.23 	2; 62Q.80, subdivisions 3, 4, 13, 14, by adding a subdivision; 69.021, subdivision 
1.24 	11; 103I.101, subdivision 6; 103I.208, subdivisions 1, 2; 103I.235, subdivision 
1.25 	1; 119B.011, by adding a subdivision; 119B.035, subdivision 1; 119B.05, 
1.26 	subdivision 1; 119B.09, subdivision 7, by adding subdivisions; 119B.12; 
1.27 	119B.125, subdivision 2; 119B.13, subdivisions 1, 3a, 7; 119B.21, subdivision 
1.28 	5; 144.123; 144.125; 144.3345; 144.5509; 144.552; 144.553, subdivision 3; 
1.29 	144.565; 144.651, subdivisions 9, 10, 26; 144.698, subdivision 1; 144.699, by 
1.30 	adding a subdivision; 144.9507, by adding a subdivision; 144.9512; 144A.073, 
1.31 	subdivision 4; 144A.351; 144D.03, subdivision 1; 144E.101, subdivision 6; 
1.32 	144E.127; 144E.35, subdivision 1; 145A.17; 145C.05; 145C.07, by adding 
1.33 	a subdivision; 148.235, by adding a subdivision; 148.6445, subdivisions 1, 
1.34 	2; 148B.53, subdivision 3; 148C.11, subdivision 1; 149A.52, subdivision 3; 
1.35 	149A.97, subdivision 7; 151.19, subdivision 2; 151.37, subdivision 2; 152.11, by 
1.36 	adding a subdivision; 157.16, subdivision 1; 169A.70, subdivision 4; 198.075; 
1.37 	245.462, subdivision 20; 245.465, by adding a subdivision; 245.4712, subdivision 
1.38 	1; 245.4874; 245.50, subdivision 5; 245.771, by adding a subdivision; 245.98, 
1.39 	subdivision 2; 245A.035; 245A.10, subdivision 2; 245A.16, subdivisions 1, 3; 
2.1 	245C.02, by adding a subdivision; 245C.04, subdivision 1; 245C.05, subdivisions 
2.2 	1, 4, 5, 7, by adding a subdivision; 245C.08, subdivisions 1, 2; 245C.10, by 
2.3 	adding a subdivision; 245C.11, subdivisions 1, 2; 245C.12; 245C.16, subdivision 
2.4 	1; 245C.17, by adding a subdivision; 245C.21, by adding a subdivision; 
2.5 	245C.23, subdivision 2; 246.54, subdivisions 1, 2; 252.27, subdivision 2a; 
2.6 	252.32, subdivision 3; 253B.185, subdivision 2, by adding a subdivision; 
2.7 	254A.03, subdivision 3; 254A.16, subdivision 2; 254B.02, subdivisions 1, 5; 
2.8 	254B.03, subdivisions 1, 3; 254B.06, subdivision 3; 256.01, subdivisions 2, 
2.9 	2b, 4, by adding subdivisions; 256.015, subdivision 7; 256.017, subdivisions 
2.10 	1, 9; 256.476, subdivisions 1, 2, 3, 4, 5, 10; 256.969, subdivisions 9, 27; 
2.11 	256.974; 256.9741, subdivisions 1, 3; 256.9742, subdivisions 3, 4, 6; 256.9744, 
2.12 	subdivision 1; 256.975, subdivision 7, by adding a subdivision; 256.984, 
2.13 	subdivision 1; 256B.04, subdivision 14, by adding a subdivision; 256B.055, 
2.14 	subdivision 14; 256B.056, subdivision 10, by adding a subdivision; 256B.057, 
2.15 	by adding a subdivision; 256B.0621, subdivision 11; 256B.0622, subdivision 2; 
2.16 	256B.0623, subdivision 5; 256B.0625, subdivisions 3f, 13c, 13d, 18a, 20, 23, 47, 
2.17 	by adding subdivisions; 256B.0631, subdivisions 1, 3; 256B.0644; 256B.0651, 
2.18 	subdivision 7; 256B.0655, subdivisions 1b, 1f, 3, 8, by adding subdivisions; 
2.19 	256B.0911, subdivisions 3a, 3b, 4b, 4c, 6, 7, by adding subdivisions; 256B.0913, 
2.20 	subdivisions 4, 5, 5a, 8, 9, 10, 11, 12, 13, 14; 256B.0915; 256B.0919, subdivision 
2.21 	3; 256B.0943, subdivisions 6, 8, 9, 11, 12; 256B.0945, subdivision 4; 256B.095; 
2.22 	256B.0951, subdivision 1; 256B.199; 256B.27, subdivision 2a; 256B.431, 
2.23 	subdivisions 1, 2e, 3f, 17a, 17e, 41; 256B.434, subdivision 4, by adding 
2.24 	subdivisions; 256B.437, by adding a subdivision; 256B.441, subdivisions 1, 2, 5, 
2.25 	6, 10, 11, 13, 14, 17, 20, 24, 30, 31, 34, 38, by adding subdivisions; 256B.49, 
2.26 	subdivision 11, by adding a subdivision; 256B.5012, by adding a subdivision; 
2.27 	256B.69, subdivisions 4, 5g, 5h, 23; 256B.76; 256B.763; 256D.03, subdivisions 
2.28 	3, 4; 256E.35, subdivision 2; 256I.04, subdivision 3; 256I.05, by adding 
2.29 	subdivisions; 256J.01, by adding a subdivision; 256J.02, subdivisions 1, 4, by 
2.30 	adding a subdivision; 256J.021; 256J.08, subdivision 65; 256J.20, subdivision 3; 
2.31 	256J.21, subdivision 2; 256J.32, subdivision 6; 256J.42, subdivision 1; 256J.46, 
2.32 	by adding a subdivision; 256J.49, subdivision 13; 256J.521, subdivisions 1, 2; 
2.33 	256J.53, subdivision 2; 256J.55, subdivision 1; 256J.626, subdivisions 1, 2, 3, 4, 
2.34 	5, 6, 7; 256J.751, subdivisions 2, 5; 256J.77; 256J.95, subdivision 3; 256K.45, 
2.35 	by adding a subdivision; 256L.01, subdivisions 1, 4; 256L.03, subdivisions 
2.36 	1, 3, 5; 256L.04, subdivisions 1, 7, 12; 256L.05, subdivisions 1, 1b, 2, 3a; 
2.37 	256L.07, subdivisions 1, 6, by adding a subdivision; 256L.09, subdivision 4; 
2.38 	256L.11, subdivision 7; 256L.12, subdivision 9a; 256L.15, subdivisions 1, 2, 4; 
2.39 	256L.17, subdivisions 2, 3, 7; 259.20, subdivision 2; 259.24, subdivision 3; 
2.40 	259.29, subdivision 1; 259.41; 259.53, subdivisions 1, 2; 259.57, subdivisions 
2.41 	1, 2; 259.67, subdivisions 4, 7; 259.75, subdivision 8; 260.012; 260.755, 
2.42 	subdivisions 12, 20; 260.761, subdivision 7; 260.765, subdivision 5; 260.771, 
2.43 	subdivisions 1, 2; 260B.157, subdivision 1; 260C.152, subdivision 5; 260C.163, 
2.44 	subdivision 1; 260C.201, subdivision 11; 260C.209; 260C.212, subdivisions 1, 2, 
2.45 	4, 9; 260C.317, subdivision 3; 260C.331, subdivision 1; 270B.14, subdivision 
2.46 	1; 518A.56, by adding a subdivision; 609.115, subdivisions 8, 9; 626.556, 
2.47 	subdivisions 2, 3, 10, 10a, 10c, 10f, by adding subdivisions; Laws 2000, chapter 
2.48 	340, section 19; Laws 2005, chapter 98, article 3, section 25; Laws 2005, First 
2.49 	Special Session chapter 4, article 9, section 3, subdivision 2; Laws 2006, chapter 
2.50 	282, article 20, section 37; proposing coding for new law in Minnesota Statutes, 
2.51 	chapters 16C; 62J; 62Q; 144; 145; 148; 149A; 151; 152; 156; 245; 245A; 245C; 
2.52 	252; 254A; 256; 256B; 256C; 256D; 256J; 256L; 260; repealing Minnesota 
2.53 	Statutes 2006, sections 62A.301; 62J.052, subdivision 1; 62J.692, subdivision 
2.54 	10; 119B.08, subdivision 4; 144.335; 252.21; 252.22; 252.23; 252.24; 252.25; 
2.55 	252.261; 252.275, subdivision 5; 254A.02, subdivisions 7, 9, 12, 14, 15, 16; 
2.56 	254A.085; 254A.086; 254A.12; 254A.14; 254A.15; 254A.16, subdivision 5; 
2.57 	254A.175; 254A.18; 256.956; 256.9743; 256B.0625, subdivisions 5a, 5b, 5c, 
2.58 	5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k; 256B.0631, subdivision 4; 256B.0913, subdivisions 
3.1 	5b, 5c, 5d, 5e, 5f, 5g, 5h; 256B.441, subdivisions 12, 16, 21, 26, 28, 42, 45; 
3.2 	256J.29; 256J.37, subdivision 3b; 256J.561, subdivision 1; 256J.62, subdivision 
3.3 	9; 256J.626, subdivision 9; 256J.65; 256L.035; 256L.07, subdivision 2a; Laws 
3.4 	1997, chapter 8, section 1; Laws 2004, chapter 288, article 6, section 27; Laws 
3.5 	2006, chapter 249, section 6; Minnesota Rules, parts 4610.2800; 9503.0035, 
3.6 	subpart 2; 9560.0102, subpart 2, item C; 9585.0030.
3.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.8 	ARTICLE 1
3.9 	CHILD WELFARE POLICY

3.10 	Section 1. Minnesota Statutes 2006, section 256.01, subdivision 2, is amended to read:
3.11 		Subd. 2.Specific powers. Subject to the provisions of section 241.021, subdivision 
3.12 	2, the commissioner of human services shall carry out the specific duties in paragraphs (a) 
3.13 	through (cc):
3.14 	(a) Administer and supervise all forms of public assistance provided for by state law 
3.15 	and other welfare activities or services as are vested in the commissioner. Administration 
3.16 	and supervision of human services activities or services includes, but is not limited to, 
3.17 	assuring timely and accurate distribution of benefits, completeness of service, and quality 
3.18 	program management. In addition to administering and supervising human services 
3.19 	activities vested by law in the department, the commissioner shall have the authority to:
3.20 	(1) require county agency participation in training and technical assistance programs 
3.21 	to promote compliance with statutes, rules, federal laws, regulations, and policies 
3.22 	governing human services;
3.23 	(2) monitor, on an ongoing basis, the performance of county agencies in the 
3.24 	operation and administration of human services, enforce compliance with statutes, rules, 
3.25 	federal laws, regulations, and policies governing welfare services and promote excellence 
3.26 	of administration and program operation;
3.27 	(3) develop a quality control program or other monitoring program to review county 
3.28 	performance and accuracy of benefit determinations;
3.29 	(4) require county agencies to make an adjustment to the public assistance benefits 
3.30 	issued to any individual consistent with federal law and regulation and state law and rule 
3.31 	and to issue or recover benefits as appropriate;
3.32 	(5) delay or deny payment of all or part of the state and federal share of benefits and 
3.33 	administrative reimbursement according to the procedures set forth in section 256.017;
3.34 	(6) make contracts with and grants to public and private agencies and organizations, 
3.35 	both profit and nonprofit, and individuals, using appropriated funds; and
3.36 	(7) enter into contractual agreements with federally recognized Indian tribes with 
3.37 	a reservation in Minnesota to the extent necessary for the tribe to operate a federally 
4.1 	approved family assistance program or any other program under the supervision of the 
4.2 	commissioner. The commissioner shall consult with the affected county or counties in 
4.3 	the contractual agreement negotiations, if the county or counties wish to be included, 
4.4 	in order to avoid the duplication of county and tribal assistance program services. The 
4.5 	commissioner may establish necessary accounts for the purposes of receiving and 
4.6 	disbursing funds as necessary for the operation of the programs.
4.7 	(b) Inform county agencies, on a timely basis, of changes in statute, rule, federal law, 
4.8 	regulation, and policy necessary to county agency administration of the programs.
4.9 	(c) Administer and supervise all child welfare activities; promote the enforcement of 
4.10 	laws protecting disabled, dependent, neglected and delinquent children, and children born 
4.11 	to mothers who were not married to the children's fathers at the times of the conception 
4.12 	nor at the births of the children; license and supervise child-caring and child-placing 
4.13 	agencies and institutions; supervise the care of children in boarding and foster homes or 
4.14 	in private institutions; and generally perform all functions relating to the field of child 
4.15 	welfare now vested in the State Board of Control.
4.16 	(d) Administer and supervise all noninstitutional service to disabled persons, 
4.17 	including those who are visually impaired, hearing impaired, or physically impaired 
4.18 	or otherwise disabled. The commissioner may provide and contract for the care and 
4.19 	treatment of qualified indigent children in facilities other than those located and available 
4.20 	at state hospitals when it is not feasible to provide the service in state hospitals.
4.21 	(e) Assist and actively cooperate with other departments, agencies and institutions, 
4.22 	local, state, and federal, by performing services in conformity with the purposes of Laws 
4.23 	1939, chapter 431.
4.24 	(f) Act as the agent of and cooperate with the federal government in matters of 
4.25 	mutual concern relative to and in conformity with the provisions of Laws 1939, chapter 
4.26 	431, including the administration of any federal funds granted to the state to aid in the 
4.27 	performance of any functions of the commissioner as specified in Laws 1939, chapter 431, 
4.28 	and including the promulgation of rules making uniformly available medical care benefits 
4.29 	to all recipients of public assistance, at such times as the federal government increases its 
4.30 	participation in assistance expenditures for medical care to recipients of public assistance, 
4.31 	the cost thereof to be borne in the same proportion as are grants of aid to said recipients.
4.32 	(g) Establish and maintain any administrative units reasonably necessary for the 
4.33 	performance of administrative functions common to all divisions of the department.
4.34 	(h) Act as designated guardian of both the estate and the person of all the wards of 
4.35 	the state of Minnesota, whether by operation of law or by an order of court, without any 
4.36 	further act or proceeding whatever, except as to persons committed as developmentally 
5.1 	disabled. For children under the guardianship of the commissioner or a tribe in Minnesota 
5.2 	recognized by the Secretary of the Interior whose interests would be best served by 
5.3 	adoptive placement, the commissioner may contract with a licensed child-placing agency 
5.4 	or a Minnesota tribal social services agency to provide adoption services. A contract 
5.5 	with a licensed child-placing agency must be designed to supplement existing county 
5.6 	efforts and may not replace existing county programs or tribal social services, unless the 
5.7 	replacement is agreed to by the county board and the appropriate exclusive bargaining 
5.8 	representative, tribal governing body, or the commissioner has evidence that child 
5.9 	placements of the county continue to be substantially below that of other counties. Funds 
5.10 	encumbered and obligated under an agreement for a specific child shall remain available 
5.11 	until the terms of the agreement are fulfilled or the agreement is terminated.
5.12 	(i) Act as coordinating referral and informational center on requests for service for 
5.13 	newly arrived immigrants coming to Minnesota.
5.14 	(j) The specific enumeration of powers and duties as hereinabove set forth shall in no 
5.15 	way be construed to be a limitation upon the general transfer of powers herein contained.
5.16 	(k) Establish county, regional, or statewide schedules of maximum fees and charges 
5.17 	which may be paid by county agencies for medical, dental, surgical, hospital, nursing and 
5.18 	nursing home care and medicine and medical supplies under all programs of medical 
5.19 	care provided by the state and for congregate living care under the income maintenance 
5.20 	programs.
5.21 	(l) Have the authority to conduct and administer experimental projects to test 
5.22 	methods and procedures of administering assistance and services to recipients or potential 
5.23 	recipients of public welfare. To carry out such experimental projects, it is further provided 
5.24 	that the commissioner of human services is authorized to waive the enforcement of 
5.25 	existing specific statutory program requirements, rules, and standards in one or more 
5.26 	counties. The order establishing the waiver shall provide alternative methods and 
5.27 	procedures of administration, shall not be in conflict with the basic purposes, coverage, or 
5.28 	benefits provided by law, and in no event shall the duration of a project exceed four years. 
5.29 	It is further provided that no order establishing an experimental project as authorized by 
5.30 	the provisions of this section shall become effective until the following conditions have 
5.31 	been met:
5.32 	(1) the secretary of health and human services of the United States has agreed, for 
5.33 	the same project, to waive state plan requirements relative to statewide uniformity; and
5.34 	(2) a comprehensive plan, including estimated project costs, shall be approved by 
5.35 	the Legislative Advisory Commission and filed with the commissioner of administration.
6.1 	(m) According to federal requirements, establish procedures to be followed by 
6.2 	local welfare boards in creating citizen advisory committees, including procedures for 
6.3 	selection of committee members.
6.4 	(n) Allocate federal fiscal disallowances or sanctions which are based on quality 
6.5 	control error rates for the aid to families with dependent children program formerly 
6.6 	codified in sections 256.72 to 256.87, medical assistance, or food stamp program in the 
6.7 	following manner:
6.8 	(1) one-half of the total amount of the disallowance shall be borne by the county 
6.9 	boards responsible for administering the programs. For the medical assistance and the 
6.10 	AFDC program formerly codified in sections 256.72 to 256.87, disallowances shall be 
6.11 	shared by each county board in the same proportion as that county's expenditures for the 
6.12 	sanctioned program are to the total of all counties' expenditures for the AFDC program 
6.13 	formerly codified in sections 256.72 to 256.87, and medical assistance programs. For the 
6.14 	food stamp program, sanctions shall be shared by each county board, with 50 percent of 
6.15 	the sanction being distributed to each county in the same proportion as that county's 
6.16 	administrative costs for food stamps are to the total of all food stamp administrative costs 
6.17 	for all counties, and 50 percent of the sanctions being distributed to each county in the 
6.18 	same proportion as that county's value of food stamp benefits issued are to the total of 
6.19 	all benefits issued for all counties. Each county shall pay its share of the disallowance 
6.20 	to the state of Minnesota. When a county fails to pay the amount due hereunder, the 
6.21 	commissioner may deduct the amount from reimbursement otherwise due the county, or 
6.22 	the attorney general, upon the request of the commissioner, may institute civil action 
6.23 	to recover the amount due; and
6.24 	(2) notwithstanding the provisions of clause (1), if the disallowance results from 
6.25 	knowing noncompliance by one or more counties with a specific program instruction, and 
6.26 	that knowing noncompliance is a matter of official county board record, the commissioner 
6.27 	may require payment or recover from the county or counties, in the manner prescribed in 
6.28 	clause (1), an amount equal to the portion of the total disallowance which resulted from the 
6.29 	noncompliance, and may distribute the balance of the disallowance according to clause (1).
6.30 	(o) Develop and implement special projects that maximize reimbursements and 
6.31 	result in the recovery of money to the state. For the purpose of recovering state money, 
6.32 	the commissioner may enter into contracts with third parties. Any recoveries that result 
6.33 	from projects or contracts entered into under this paragraph shall be deposited in the 
6.34 	state treasury and credited to a special account until the balance in the account reaches 
6.35 	$1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be 
7.1 	transferred and credited to the general fund. All money in the account is appropriated to 
7.2 	the commissioner for the purposes of this paragraph.
7.3 	(p) Have the authority to make direct payments to facilities providing shelter 
7.4 	to women and their children according to section 256D.05, subdivision 3. Upon 
7.5 	the written request of a shelter facility that has been denied payments under section 
7.6 	256D.05, subdivision 3, the commissioner shall review all relevant evidence and make 
7.7 	a determination within 30 days of the request for review regarding issuance of direct 
7.8 	payments to the shelter facility. Failure to act within 30 days shall be considered a 
7.9 	determination not to issue direct payments.
7.10 	(q) Have the authority to establish and enforce the following county reporting 
7.11 	requirements:
7.12 	(1) the commissioner shall establish fiscal and statistical reporting requirements 
7.13 	necessary to account for the expenditure of funds allocated to counties for human 
7.14 	services programs. When establishing financial and statistical reporting requirements, the 
7.15 	commissioner shall evaluate all reports, in consultation with the counties, to determine if 
7.16 	the reports can be simplified or the number of reports can be reduced;
7.17 	(2) the county board shall submit monthly or quarterly reports to the department 
7.18 	as required by the commissioner. Monthly reports are due no later than 15 working days 
7.19 	after the end of the month. Quarterly reports are due no later than 30 calendar days after 
7.20 	the end of the quarter, unless the commissioner determines that the deadline must be 
7.21 	shortened to 20 calendar days to avoid jeopardizing compliance with federal deadlines 
7.22 	or risking a loss of federal funding. Only reports that are complete, legible, and in the 
7.23 	required format shall be accepted by the commissioner;
7.24 	(3) if the required reports are not received by the deadlines established in clause (2), 
7.25 	the commissioner may delay payments and withhold funds from the county board until 
7.26 	the next reporting period. When the report is needed to account for the use of federal 
7.27 	funds and the late report results in a reduction in federal funding, the commissioner shall 
7.28 	withhold from the county boards with late reports an amount equal to the reduction in 
7.29 	federal funding until full federal funding is received;
7.30 	(4) a county board that submits reports that are late, illegible, incomplete, or not 
7.31 	in the required format for two out of three consecutive reporting periods is considered 
7.32 	noncompliant. When a county board is found to be noncompliant, the commissioner 
7.33 	shall notify the county board of the reason the county board is considered noncompliant 
7.34 	and request that the county board develop a corrective action plan stating how the 
7.35 	county board plans to correct the problem. The corrective action plan must be submitted 
8.1 	to the commissioner within 45 days after the date the county board received notice 
8.2 	of noncompliance;
8.3 	(5) the final deadline for fiscal reports or amendments to fiscal reports is one year 
8.4 	after the date the report was originally due. If the commissioner does not receive a report 
8.5 	by the final deadline, the county board forfeits the funding associated with the report for 
8.6 	that reporting period and the county board must repay any funds associated with the 
8.7 	report received for that reporting period;
8.8 	(6) the commissioner may not delay payments, withhold funds, or require repayment 
8.9 	under clause (3) or (5) if the county demonstrates that the commissioner failed to 
8.10 	provide appropriate forms, guidelines, and technical assistance to enable the county to 
8.11 	comply with the requirements. If the county board disagrees with an action taken by the 
8.12 	commissioner under clause (3) or (5), the county board may appeal the action according 
8.13 	to sections 14.57 to 14.69; and
8.14 	(7) counties subject to withholding of funds under clause (3) or forfeiture or 
8.15 	repayment of funds under clause (5) shall not reduce or withhold benefits or services to 
8.16 	clients to cover costs incurred due to actions taken by the commissioner under clause 
8.17 	(3) or (5).
8.18 	(r) Allocate federal fiscal disallowances or sanctions for audit exceptions when 
8.19 	federal fiscal disallowances or sanctions are based on a statewide random sample for 
8.20 	the foster care program under title IV-E of the Social Security Act, United States Code, 
8.21 	title 42, in direct proportion to each county's title IV-E foster care maintenance claim 
8.22 	for that period.
8.23 	(s) Be responsible for ensuring the detection, prevention, investigation, and 
8.24 	resolution of fraudulent activities or behavior by applicants, recipients, and other 
8.25 	participants in the human services programs administered by the department.
8.26 	(t) Require county agencies to identify overpayments, establish claims, and utilize 
8.27 	all available and cost-beneficial methodologies to collect and recover these overpayments 
8.28 	in the human services programs administered by the department.
8.29 	(u) Have the authority to administer a drug rebate program for drugs purchased 
8.30 	pursuant to the prescription drug program established under section 256.955 after the 
8.31 	beneficiary's satisfaction of any deductible established in the program. The commissioner 
8.32 	shall require a rebate agreement from all manufacturers of covered drugs as defined in 
8.33 	section 256B.0625, subdivision 13. Rebate agreements for prescription drugs delivered on 
8.34 	or after July 1, 2002, must include rebates for individuals covered under the prescription 
8.35 	drug program who are under 65 years of age. For each drug, the amount of the rebate shall 
8.36 	be equal to the rebate as defined for purposes of the federal rebate program in United 
9.1 	States Code, title 42, section 1396r-8. The manufacturers must provide full payment 
9.2 	within 30 days of receipt of the state invoice for the rebate within the terms and conditions 
9.3 	used for the federal rebate program established pursuant to section 1927 of title XIX of 
9.4 	the Social Security Act. The manufacturers must provide the commissioner with any 
9.5 	information necessary to verify the rebate determined per drug. The rebate program shall 
9.6 	utilize the terms and conditions used for the federal rebate program established pursuant to 
9.7 	section 1927 of title XIX of the Social Security Act.
9.8 	(v) Have the authority to administer the federal drug rebate program for drugs 
9.9 	purchased under the medical assistance program as allowed by section 1927 of title XIX 
9.10 	of the Social Security Act and according to the terms and conditions of section 1927. 
9.11 	Rebates shall be collected for all drugs that have been dispensed or administered in an 
9.12 	outpatient setting and that are from manufacturers who have signed a rebate agreement 
9.13 	with the United States Department of Health and Human Services.
9.14 	(w) Have the authority to administer a supplemental drug rebate program for drugs 
9.15 	purchased under the medical assistance program. The commissioner may enter into 
9.16 	supplemental rebate contracts with pharmaceutical manufacturers and may require prior 
9.17 	authorization for drugs that are from manufacturers that have not signed a supplemental 
9.18 	rebate contract. Prior authorization of drugs shall be subject to the provisions of section 
9.19 	256B.0625, subdivision 13.
9.20 	(x) Operate the department's communication systems account established in Laws 
9.21 	1993, First Special Session chapter 1, article 1, section 2, subdivision 2, to manage shared 
9.22 	communication costs necessary for the operation of the programs the commissioner 
9.23 	supervises. A communications account may also be established for each regional 
9.24 	treatment center which operates communications systems. Each account must be used 
9.25 	to manage shared communication costs necessary for the operations of the programs the 
9.26 	commissioner supervises. The commissioner may distribute the costs of operating and 
9.27 	maintaining communication systems to participants in a manner that reflects actual usage. 
9.28 	Costs may include acquisition, licensing, insurance, maintenance, repair, staff time and 
9.29 	other costs as determined by the commissioner. Nonprofit organizations and state, county, 
9.30 	and local government agencies involved in the operation of programs the commissioner 
9.31 	supervises may participate in the use of the department's communications technology and 
9.32 	share in the cost of operation. The commissioner may accept on behalf of the state any 
9.33 	gift, bequest, devise or personal property of any kind, or money tendered to the state for 
9.34 	any lawful purpose pertaining to the communication activities of the department. Any 
9.35 	money received for this purpose must be deposited in the department's communication 
9.36 	systems accounts. Money collected by the commissioner for the use of communication 
10.1 	systems must be deposited in the state communication systems account and is appropriated 
10.2 	to the commissioner for purposes of this section.
10.3 	(y) Receive any federal matching money that is made available through the medical 
10.4 	assistance program for the consumer satisfaction survey. Any federal money received for 
10.5 	the survey is appropriated to the commissioner for this purpose. The commissioner may 
10.6 	expend the federal money received for the consumer satisfaction survey in either year of 
10.7 	the biennium.
10.8 	(z) Designate community information and referral call centers and incorporate 
10.9 	cost reimbursement claims from the designated community information and referral 
10.10 	call centers into the federal cost reimbursement claiming processes of the department 
10.11 	according to federal law, rule, and regulations. Existing information and referral centers 
10.12 	provided by Greater Twin Cities United Way or existing call centers for which Greater 
10.13 	Twin Cities United Way has legal authority to represent, shall be included in these 
10.14 	designations upon review by the commissioner and assurance that these services are 
10.15 	accredited and in compliance with national standards. Any reimbursement is appropriated 
10.16 	to the commissioner and all designated information and referral centers shall receive 
10.17 	payments according to normal department schedules established by the commissioner 
10.18 	upon final approval of allocation methodologies from the United States Department of 
10.19 	Health and Human Services Division of Cost Allocation or other appropriate authorities.
10.20 	(aa) Develop recommended standards for foster care homes that address the 
10.21 	components of specialized therapeutic services to be provided by foster care homes with 
10.22 	those services.
10.23 	(bb) Authorize the method of payment to or from the department as part of the 
10.24 	human services programs administered by the department. This authorization includes the 
10.25 	receipt or disbursement of funds held by the department in a fiduciary capacity as part of 
10.26 	the human services programs administered by the department.
10.27 	(cc) Have the authority to administer a drug rebate program for drugs purchased for 
10.28 	persons eligible for general assistance medical care under section 256D.03, subdivision 3. 
10.29 	For manufacturers that agree to participate in the general assistance medical care rebate 
10.30 	program, the commissioner shall enter into a rebate agreement for covered drugs as 
10.31 	defined in section 256B.0625, subdivisions 13 and 13d. For each drug, the amount of the 
10.32 	rebate shall be equal to the rebate as defined for purposes of the federal rebate program in 
10.33 	United States Code, title 42, section 1396r-8. The manufacturers must provide payment 
10.34 	within the terms and conditions used for the federal rebate program established under 
10.35 	section 1927 of title XIX of the Social Security Act. The rebate program shall utilize 
11.1 	the terms and conditions used for the federal rebate program established under section 
11.2 	1927 of title XIX of the Social Security Act.
11.3 	Effective January 1, 2006, drug coverage under general assistance medical care shall 
11.4 	be limited to those prescription drugs that:
11.5 	(1) are covered under the medical assistance program as described in section 
11.6 	256B.0625, subdivisions 13 and 13d; and
11.7 	(2) are provided by manufacturers that have fully executed general assistance 
11.8 	medical care rebate agreements with the commissioner and comply with such agreements. 
11.9 	Prescription drug coverage under general assistance medical care shall conform to 
11.10 	coverage under the medical assistance program according to section 256B.0625, 
11.11 	subdivisions 13 to 13g.
11.12 	The rebate revenues collected under the drug rebate program are deposited in the 
11.13 	general fund.

11.14 	Sec. 2. Minnesota Statutes 2006, section 259.24, subdivision 3, is amended to read:
11.15 		Subd. 3.Child. When the child to be adopted is over 14 years of age, the child's 
11.16 	written consent to adoption by a particular person is also shall be necessary. A child 
11.17 	of any age who is under the guardianship of the commissioner and is legally available 
11.18 	for adoption may not refuse or waive the commissioner's agent's exhaustive efforts to 
11.19 	recruit, identify, and place the child in an adoptive home required under section 260C.317, 
11.20 	subdivision 3, paragraph (b), or sign a document relieving county social services agencies 
11.21 	of all recruitment efforts on the child's behalf.

11.22 	Sec. 3. Minnesota Statutes 2006, section 259.53, subdivision 1, is amended to read:
11.23 		Subdivision 1.Notice to commissioner; referral for postplacement assessment.
 11.24 	(a) Upon the filing of a petition for adoption of a child who is:
11.25 	(1) under the guardianship of the commissioner or a licensed child-placing agency 
11.26 	according to section 260C.201, subdivision 11, or 260C.317;
11.27 	(2) placed by the commissioner, commissioner's agent, or licensed child-placing 
11.28 	agency after a consent to adopt according to section 259.24 or under an agreement 
11.29 	conferring authority to place for adoption according to section 259.25; or
11.30 	(3) placed by preadoptive custody order for a direct adoptive placement ordered 
11.31 	by the district court under section 259.47,
11.32 	the court administrator shall immediately transmit a copy of the petition to the 
11.33 	commissioner of human services.
12.1 	(b) The court shall immediately refer the petition to the agency specified below for 
12.2 	completion of a postplacement assessment and report as required by subdivision 2.
12.3 	(1) If the child to be adopted has been committed to the guardianship of the 
12.4 	commissioner or an agency under section 260C.317 or an agency has been given authority 
12.5 	to place the child under section 259.25, the court shall refer the petition to that agency, 
12.6 	unless another agency is supervising the placement, in which case the court shall refer the 
12.7 	petition to the supervising agency. 
12.8 	(2) If the child to be adopted has been placed in the petitioner's home by a direct 
12.9 	adoptive placement, the court shall refer the petition to the agency supervising the 
12.10 	placement under section 259.47, subdivision 3, paragraph (a), clause (6). 
12.11 	(3) If the child is to be adopted by an individual who is related to the child as defined 
12.12 	by section 245A.02, subdivision 13, and in all other instances not described in clause (1) 
12.13 	or (2), the court shall refer the petition to the local social services agency of the county in 
12.14 	which the prospective adoptive parent lives. 

12.15 	Sec. 4. Minnesota Statutes 2006, section 259.57, subdivision 1, is amended to read:
12.16 		Subdivision 1.Findings; orders. Upon the hearing,
12.17 	(a) if the court finds that it is in the best interests of the child that the petition 
12.18 	be granted, a decree of adoption shall be made and recorded in the office of the court 
12.19 	administrator, ordering that henceforth the child shall be the child of the petitioner. In the 
12.20 	decree the court may change the name of the child if desired. After the decree is granted
12.21 	for a child who is:
12.22 	(1) under the guardianship of the commissioner or a licensed child-placing agency 
12.23 	according to section 260C.201, subdivision 11, or 260C.317;
12.24 	(2) placed by the commissioner, commissioner's agent, or licensed child-placing 
12.25 	agency after a consent to adopt according to section 259.24 or under an agreement 
12.26 	conferring authority to place for adoption according to section 259.25; or
12.27 	(3) adopted after a direct adoptive placement ordered by the district court under 
12.28 	section 259.47,
12.29 	the court administrator shall immediately mail a copy of the recorded decree to the 
12.30 	commissioner of human services;
12.31 	(b) if the court is not satisfied that the proposed adoption is in the best interests 
12.32 	of the child, the court shall deny the petition, and shall order the child returned to the 
12.33 	custody of the person or agency legally vested with permanent custody or certify the 
12.34 	case for appropriate action and disposition to the court having jurisdiction to determine 
12.35 	the custody and guardianship of the child.

13.1 	Sec. 5. Minnesota Statutes 2006, section 259.67, subdivision 7, is amended to read:
13.2 		Subd. 7.Reimbursement of costs. (a) Subject to rules of the commissioner, and 
13.3 	the provisions of this subdivision a child-placing agency licensed in Minnesota or any 
13.4 	other state, or local or tribal social services agency shall receive a reimbursement from the 
13.5 	commissioner equal to 100 percent of the reasonable and appropriate cost of providing 
13.6 	adoption services for a child certified as eligible for adoption assistance under subdivision 
13.7 	4. Such assistance. Adoption services under this subdivision may include adoptive family 
13.8 	recruitment, counseling, and special training when needed. 
13.9 	(b) An eligible child must have a goal of adoption, which may include an adoption 
13.10 	in accordance with tribal law, and meet one of the following criteria: 
13.11 	(1) is a ward of the commissioner of human services or a ward of tribal court 
13.12 	pursuant to section 260.755, subdivision 20, who meets one of the criteria in subdivision 
13.13 	4, paragraph (b), clause (1), (2), or (3); or 
13.14 	(2) is under the guardianship of a Minnesota-licensed child-placing agency who 
13.15 	meets one of the criteria in subdivision 4, paragraph (b), clause (1) or (2).
13.16 	(c) A child-placing agency licensed in Minnesota or any other state shall receive 
13.17 	reimbursement for adoption services it purchases for or directly provides to an eligible 
13.18 	child. Tribal social services shall receive reimbursement for adoption services it purchases 
13.19 	for or directly provides to an eligible child. A local or tribal social services agency shall 
13.20 	receive such reimbursement only for adoption services it purchases for an eligible child.
13.21 	(b) A child-placing agency licensed in Minnesota or any other state or local or tribal 
13.22 	social services agency seeking reimbursement under this subdivision shall enter into
13.23 	Before providing adoption services for which reimbursement will be sought under this 
13.24 	subdivision, a reimbursement agreement, on the designated format, must be entered into
13.25 	with the commissioner before providing adoption services for which reimbursement 
13.26 	is sought. No reimbursement under this subdivision shall be made to an agency for 
13.27 	services provided prior to entering a reimbursement agreement. Separate reimbursement 
13.28 	agreements shall be made for each child and separate records shall be kept on each child 
13.29 	for whom a reimbursement agreement is made. The commissioner of human services shall 
13.30 	agree that the reimbursement costs are reasonable and appropriate. The commissioner 
13.31 	may spend up to $16,000 for each purchase of service agreement. Only one agreement per 
13.32 	child is allowed, unless an exception is granted by the commissioner. Funds encumbered 
13.33 	and obligated under such an agreement for the child remain available until the terms of 
13.34 	the agreement are fulfilled or the agreement is terminated.
13.35 	(c) When a local or tribal social services agency uses a purchase of service agreement 
13.36 	to provide services reimbursable under a reimbursement agreement, The commissioner 
14.1 	may shall make reimbursement payments directly to the agency providing the service if 
14.2 	direct reimbursement is specified by the purchase of service agreement, and if the request 
14.3 	for reimbursement is submitted by the local or tribal social services agency along with a 
14.4 	verification that the service was provided.

14.5 	Sec. 6. Minnesota Statutes 2006, section 259.75, subdivision 8, is amended to read:
14.6 		Subd. 8.Reasons for deferral. Deferral of the listing of a child with the state 
14.7 	adoption exchange shall be only for one or more of the following reasons:
14.8 	(a) the child is in an adoptive placement but is not legally adopted;
14.9 	(b) the child's foster parents or other individuals are now considering adoption;
14.10 	(c) diagnostic study or testing is required to clarify the child's problem and provide 
14.11 	an adequate description; or
14.12 	(d) the child is currently in a hospital and continuing need for daily professional care 
14.13 	will not permit placement in a family setting; or.
14.14 	(e) the child is 14 years of age or older and will not consent to an adoption plan.
14.15 	Approval of a request to defer listing for any of the reasons specified in paragraph (b) or 
14.16 	(c) shall be valid for a period not to exceed 90 days, with no subsequent deferrals for 
14.17 	those reasons.

14.18 	Sec. 7. Minnesota Statutes 2006, section 260.012, is amended to read:
14.19 	260.012 DUTY TO ENSURE PLACEMENT PREVENTION AND FAMILY 
14.20 	REUNIFICATION; REASONABLE EFFORTS.
14.21 	(a) Once a child alleged to be in need of protection or services is under the court's 
14.22 	jurisdiction, the court shall ensure that reasonable efforts, including culturally appropriate 
14.23 	services, by the social services agency are made to prevent placement or to eliminate the 
14.24 	need for removal and to reunite the child with the child's family at the earliest possible 
14.25 	time, and when a child cannot be reunified with the parent or guardian from whom the
14.26 	child was removed, the court must ensure that the responsible social services agency 
14.27 	makes reasonable efforts to finalize an alternative permanent plan for the child as provided 
14.28 	in paragraph (e). In determining reasonable efforts to be made with respect to a child and 
14.29 	in making those reasonable efforts, the child's best interests, health, and safety must be of 
14.30 	paramount concern. Reasonable efforts to prevent placement and for rehabilitation and 
14.31 	reunification are always required except upon a determination by the court that a petition 
14.32 	has been filed stating a prima facie case that:
14.33 	(1) the parent has subjected a child to egregious harm as defined in section 
14.34 	260C.007, subdivision 14;
15.1 	(2) the parental rights of the parent to another child have been terminated 
15.2 	involuntarily;
15.3 	(3) the child is an abandoned infant under section 260C.301, subdivision 2, 
15.4 	paragraph (a), clause (2);
15.5 	(4) the parent's custodial rights to another child have been involuntarily transferred 
15.6 	to a relative under section 260C.201, subdivision 11, paragraph (e), clause (1), or a similar 
15.7 	law of another jurisdiction; or
15.8 	(5) the provision of services or further services for the purpose of reunification is 
15.9 	futile and therefore unreasonable under the circumstances.
15.10 	(b) When the court makes one of the prima facie determinations under paragraph (a), 
15.11 	either permanency pleadings under section 260C.201, subdivision 11, or a termination 
15.12 	of parental rights petition under sections 260C.141 and 260C.301 must be filed. A 
15.13 	permanency hearing under section 260C.201, subdivision 11, must be held within 30 
15.14 	days of this determination.
15.15 	(c) In the case of an Indian child, in proceedings under sections 260B.178 or 
15.16 	260C.178, 260C.201, and 260C.301 the juvenile court must make findings and conclusions 
15.17 	consistent with the Indian Child Welfare Act of 1978, United States Code, title 25, section 
15.18 	1901 et seq., as to the provision of active efforts. In cases governed by the Indian Child 
15.19 	Welfare Act of 1978, United States Code, title 25, section 1901, the responsible social 
15.20 	services agency must provide active efforts as required under United States Code, title 
15.21 	25, section 1911(d).
15.22 	(d) "Reasonable efforts to prevent placement" means:
15.23 	(1) the agency has made reasonable efforts to prevent the placement of the child in 
15.24 	foster care; or
15.25 	(2) given the particular circumstances of the child and family at the time of the 
15.26 	child's removal, there are no services or efforts available which could allow the child to 
15.27 	safely remain in the home.
15.28 	(e) "Reasonable efforts to finalize a permanent plan for the child" means due 
15.29 	diligence by the responsible social services agency to:
15.30 	(1) reunify the child with the parent or guardian from whom the child was removed;
15.31 	(2) assess a noncustodial parent's ability to provide day-to-day care for the child and, 
15.32 	where appropriate, provide services necessary to enable the noncustodial parent to safely 
15.33 	provide the care, as required by section 260C.212, subdivision 4;
15.34 	(3) conduct a relative search as required under section 260C.212, subdivision 5; and
15.35 	(4) when the child cannot return to the parent or guardian from whom the child was 
15.36 	removed, to plan for and finalize a safe and legally permanent alternative home for the 
16.1 	child, and considers permanent alternative homes for the child inside or outside of the 
16.2 	state, preferably through adoption or transfer of permanent legal and physical custody of 
16.3 	the child.
16.4 	(f) Reasonable efforts are made upon the exercise of due diligence by the responsible 
16.5 	social services agency to use culturally appropriate and available services to meet the 
16.6 	needs of the child and the child's family. Services may include those provided by the 
16.7 	responsible social services agency and other culturally appropriate services available in 
16.8 	the community. At each stage of the proceedings where the court is required to review 
16.9 	the appropriateness of the responsible social services agency's reasonable efforts as 
16.10 	described in paragraphs (a), (d), and (e), the social services agency has the burden of 
16.11 	demonstrating that:
16.12 	(1) it has made reasonable efforts to prevent placement of the child in foster care;
16.13 	(2) it has made reasonable efforts to eliminate the need for removal of the child from 
16.14 	the child's home and to reunify the child with the child's family at the earliest possible time;
16.15 	(3) it has made reasonable efforts to finalize an alternative permanent home for 
16.16 	the child, and considers permanent alternative homes for the child inside or outside of 
16.17 	the state; or
16.18 	(4) reasonable efforts to prevent placement and to reunify the child with the parent 
16.19 	or guardian are not required. The agency may meet this burden by stating facts in a sworn 
16.20 	petition filed under section 260C.141, by filing an affidavit summarizing the agency's 
16.21 	reasonable efforts or facts the agency believes demonstrate there is no need for reasonable 
16.22 	efforts to reunify the parent and child, or through testimony or a certified report required 
16.23 	under juvenile court rules.
16.24 	(g) Once the court determines that reasonable efforts for reunification are not 
16.25 	required because the court has made one of the prima facie determinations under paragraph 
16.26 	(a), the court may only require reasonable efforts for reunification after a hearing according 
16.27 	to section 260C.163, where the court finds there is not clear and convincing evidence of 
16.28 	the facts upon which the court based its prima facie determination. In this case when there 
16.29 	is clear and convincing evidence that the child is in need of protection or services, the 
16.30 	court may find the child in need of protection or services and order any of the dispositions 
16.31 	available under section 260C.201, subdivision 1. Reunification of a surviving child with a 
16.32 	parent is not required if the parent has been convicted of:
16.33 	(1) a violation of, or an attempt or conspiracy to commit a violation of, sections 
16.34 	609.185 to 609.20; 609.222, subdivision 2; or 609.223 in regard to another child of the 
16.35 	parent;
17.1 	(2) a violation of section 609.222, subdivision 2; or 609.223, in regard to the 
17.2 	surviving child; or
17.3 	(3) a violation of, or an attempt or conspiracy to commit a violation of, United States 
17.4 	Code, title 18, section 1111(a) or 1112(a), in regard to another child of the parent.
17.5 	(h) The juvenile court, in proceedings under sections 260B.178 or 260C.178, 
17.6 	260C.201, and 260C.301 shall make findings and conclusions as to the provision of 
17.7 	reasonable efforts. When determining whether reasonable efforts have been made, the 
17.8 	court shall consider whether services to the child and family were:
17.9 	(1) relevant to the safety and protection of the child;
17.10 	(2) adequate to meet the needs of the child and family;
17.11 	(3) culturally appropriate;
17.12 	(4) available and accessible;
17.13 	(5) consistent and timely; and
17.14 	(6) realistic under the circumstances.
17.15 	In the alternative, the court may determine that provision of services or further 
17.16 	services for the purpose of rehabilitation is futile and therefore unreasonable under the 
17.17 	circumstances or that reasonable efforts are not required as provided in paragraph (a).
17.18 	(i) This section does not prevent out-of-home placement for treatment of a child with 
17.19 	a mental disability when the child's diagnostic assessment or individual treatment plan 
17.20 	indicates that appropriate and necessary treatment cannot be effectively provided outside 
17.21 	of a residential or inpatient treatment program.
17.22 	(j) If continuation of reasonable efforts to prevent placement or reunify the child 
17.23 	with the parent or guardian from whom the child was removed is determined by the court 
17.24 	to be inconsistent with the permanent plan for the child or upon the court making one of 
17.25 	the prima facie determinations under paragraph (a), reasonable efforts must be made to 
17.26 	place the child in a timely manner in a safe and permanent home and to complete whatever 
17.27 	steps are necessary to legally finalize the permanent placement of the child.
17.28 	(k) Reasonable efforts to place a child for adoption or in another permanent 
17.29 	placement may be made concurrently with reasonable efforts to prevent placement or to 
17.30 	reunify the child with the parent or guardian from whom the child was removed. When 
17.31 	the responsible social services agency decides to concurrently make reasonable efforts for 
17.32 	both reunification and permanent placement away from the parent under paragraph (a), the 
17.33 	agency shall disclose its decision and both plans for concurrent reasonable efforts to all 
17.34 	parties and the court. When the agency discloses its decision to proceed on both plans for 
17.35 	reunification and permanent placement away from the parent, the court's review of the 
17.36 	agency's reasonable efforts shall include the agency's efforts under both plans.

18.1 	Sec. 8. Minnesota Statutes 2006, section 260.755, subdivision 12, is amended to read:
18.2 		Subd. 12.Indian tribe. "Indian tribe" means an Indian tribe, band, nation, or 
18.3 	other organized group or community of Indians recognized as eligible for the services 
18.4 	provided to Indians by the secretary because of their status as Indians, including any band
18.5 	Native group under the Alaska Native Claims Settlement Act, United States Code, title 43, 
18.6 	section 1602, and exercising tribal governmental powers.

18.7 	Sec. 9. Minnesota Statutes 2006, section 260.755, subdivision 20, is amended to read:
18.8 		Subd. 20.Tribal court. "Tribal court" means a court with federally recognized
18.9 	jurisdiction over child custody proceedings and which is either a court of Indian offenses, 
18.10 	or a court established and operated under the code or custom of an Indian tribe, or the
18.11 	any other administrative body of a tribe which is vested with authority over child custody 
18.12 	proceedings. Except as provided in section 260.771, subdivision 5, nothing in this chapter 
18.13 	shall be construed as conferring jurisdiction on an Indian tribe. 

18.14 	Sec. 10. Minnesota Statutes 2006, section 260.761, subdivision 7, is amended to read:
18.15 		Subd. 7.Identification of extended family members. Any agency considering 
18.16 	placement of an Indian child shall make reasonable active efforts to identify and locate 
18.17 	extended family members.

18.18 	Sec. 11. Minnesota Statutes 2006, section 260.765, subdivision 5, is amended to read:
18.19 		Subd. 5.Identification of extended family members. Any agency considering 
18.20 	placement of an Indian child shall make reasonable active efforts to identify and locate 
18.21 	extended family members.

18.22 	Sec. 12. Minnesota Statutes 2006, section 260.771, subdivision 1, is amended to read:
18.23 		Subdivision 1.Indian tribe jurisdiction. An Indian tribe with a tribal court has 
18.24 	exclusive jurisdiction over a child placement proceeding involving an Indian child who 
18.25 	resides or is domiciled within the reservation of such the tribe at the commencement of 
18.26 	the proceedings, except where jurisdiction is otherwise vested in the state by existing 
18.27 	federal law. When an Indian child is in the legal custody of a person or agency pursuant 
18.28 	to an order of a ward of the tribal court, the Indian tribe retains exclusive jurisdiction, 
18.29 	notwithstanding the residence or domicile of the child.

18.30 	Sec. 13. Minnesota Statutes 2006, section 260.771, subdivision 2, is amended to read:
19.1 		Subd. 2.Court determination of tribal affiliation of child. In any child placement 
19.2 	proceeding, the court shall establish whether an Indian child is involved and the identity 
19.3 	of the Indian child's tribe. This chapter and the federal Indian Child Welfare Act are 
19.4 	applicable without exception in any child custody proceeding, as defined in the federal act, 
19.5 	involving an Indian child. This chapter applies to child custody proceedings involving 
19.6 	an Indian child whether the child is in the physical or legal custody of an Indian parent, 
19.7 	Indian custodian, Indian extended family member, or other person at the commencement 
19.8 	of the proceedings. A court shall not determine the applicability of this chapter or the 
19.9 	federal Indian Child Welfare Act to a child custody proceeding based upon whether an 
19.10 	Indian child is part of an existing Indian family or based upon the level of contact a child 
19.11 	has with the child's Indian tribe, reservation, society, or off-reservation community.

19.12 	Sec. 14. [260.852] PLACEMENT PROCEDURES.
19.13 		Subdivision 1.Home study. The state must have procedures for the orderly and 
19.14 	timely interstate placement of children that are implemented in accordance with an 
19.15 	interstate compact and that, within 60 days after the state receives from another state a 
19.16 	request to conduct a study of a home environment for purposes of assessing the safety 
19.17 	and suitability of placing a child in the home, the state shall, directly or by contract, 
19.18 	conduct and complete a home study and return to the other state a report on the results of 
19.19 	the study, which shall address the extent to which placement in the home would meet the 
19.20 	needs of the child; except in the case of a home study begun before October 1, 2008, if the 
19.21 	state fails to comply with conducting and completing the home study within the 60-day 
19.22 	period and this is as a result of circumstances beyond the control of the state, the state has 
19.23 	75 days to comply if the state documents the circumstances involved and certifies that 
19.24 	completing the home study is in the best interests of the child. 
19.25 	This subdivision does not require the completion within the applicable period of 
19.26 	the parts of the home study involving the education and training of the prospective foster 
19.27 	or adoptive parents.
19.28 		Subd. 2.Effect of received report. The state shall treat any report described in 
19.29 	subdivision 1 that is received from another state, an Indian tribe, or a private agency 
19.30 	under contract with another state or Indian tribe as meeting any requirements imposed by 
19.31 	the state for the completion of a home study before placing a child in the home, unless, 
19.32 	within 14 days after receipt of the report, the state determines, based on grounds that 
19.33 	are specific to the content of the report, that making a decision in reliance on the report 
19.34 	would be contrary to the welfare of the child.
20.1 		Subd. 3.Resources. The state shall make effective use of cross-jurisdictional 
20.2 	resources, including through contract for the purchase of services, and shall eliminate 
20.3 	legal barriers to facilitate timely adoptive or permanent placements for waiting children. 
20.4 	The state shall not impose any restriction on the use of private agencies for the purpose of 
20.5 	conducting a home study to meet the 60-day requirement.
20.6 		Subd. 4.Incentive eligibility. Minnesota is an incentive-eligible state and must:
20.7 	(1) have an approved plan as required by the United States Secretary of Health 
20.8 	and Human Services;
20.9 	(2) be in compliance with the data requirements of the United States Department of 
20.10 	Health and Human Services; and
20.11 	(3) have data that verify that a home study is completed within 30 days.
20.12 		Subd. 5.Data requirements. The state shall provide to the United States Secretary 
20.13 	of Health and Human Services a written report, covering the preceding fiscal year, that 
20.14 	specifies:
20.15 	(1) the total number of interstate home studies requested by the state with respect 
20.16 	to children in foster care under the responsibility of the state, and with respect to each 
20.17 	study, the identity of the other state involved;
20.18 	(2) the total number of timely interstate home studies completed by the state with 
20.19 	respect to children in foster care under the responsibility of other states and, with respect 
20.20 	to each study, the identity of the other state involved; and
20.21 	(3) other information the United States Secretary of Health and Human Services 
20.22 	requires in order to determine whether Minnesota is a home study incentive-eligible state.
20.23 		Subd. 6.Definitions. (a) The definitions in this subdivision apply to this section.
20.24 	(b) "Home study" means an evaluation of a home environment conducted in 
20.25 	accordance with applicable requirements of the state in which the home is located, to 
20.26 	determine whether a proposed placement of a child would meet the individual needs of the 
20.27 	child, including the child's safety; permanency; health; well-being; and mental, emotional, 
20.28 	and physical development.
20.29 	(c) "Interstate home study" means a home study conducted by a state at the request 
20.30 	of another state to facilitate an adoptive or foster placement in the state of a child in foster 
20.31 	care under the responsibility of the state.
20.32 	(d) "Timely interstate home study" means an interstate home study completed by a 
20.33 	state if the state provides to the state that requested the study, within 30 days after receipt 
20.34 	of the request, a report on the results of the study, except that there is no requirement 
20.35 	for completion within the 30-day period of the parts of the home study involving the 
20.36 	education and training of the prospective foster or adoptive parents.
21.1 		Subd. 7.Background study requirements for adoption and foster care. (a) 
21.2 	Background study requirements for an adoption home study must be completed consistent 
21.3 	with section 259.41, subdivisions 1, 2, and 3.
21.4 	(b) Background study requirements for a foster care license must be completed 
21.5 	consistent with section 245C.08.
21.6 		Subd. 8.Home visits. If a child has been placed in foster care outside the state in 
21.7 	which the home of the parents of the child is located, periodically, but at least every six 
21.8 	months, a caseworker on the staff of the agency of the state in which the home of the 
21.9 	parents of the child is located or the state in which the child has been placed, or a private 
21.10 	agency under contract with either state, must visit the child in the home or institution and 
21.11 	submit a report on each visit to the agency of the state in which the home of the parents of 
21.12 	the child is located.

21.13 	Sec. 15. Minnesota Statutes 2006, section 260B.157, subdivision 1, is amended to read:
21.14 		Subdivision 1.Investigation. Upon request of the court the local social services 
21.15 	agency or probation officer shall investigate the personal and family history and 
21.16 	environment of any minor coming within the jurisdiction of the court under section 
21.17 	260B.101 and shall report its findings to the court. The court may order any minor coming 
21.18 	within its jurisdiction to be examined by a duly qualified physician, psychiatrist, or 
21.19 	psychologist appointed by the court. 
21.20 	The court shall have order a chemical use assessment conducted when a child is 
21.21 	(1) found to be delinquent for violating a provision of chapter 152, or for committing a 
21.22 	felony-level violation of a provision of chapter 609 if the probation officer determines 
21.23 	that alcohol or drug use was a contributing factor in the commission of the offense, or 
21.24 	(2) alleged to be delinquent for violating a provision of chapter 152, if the child is being 
21.25 	held in custody under a detention order. The assessor's qualifications and the assessment 
21.26 	criteria shall comply with Minnesota Rules, parts 9530.6600 to 9530.6655. If funds under 
21.27 	chapter 254B are to be used to pay for the recommended treatment, the assessment and 
21.28 	placement must comply with all provisions of Minnesota Rules, parts 9530.6600 to 
21.29 	9530.6655 and 9530.7000 to 9530.7030. The commissioner of human services shall 
21.30 	reimburse the court for the cost of the chemical use assessment, up to a maximum of $100.
21.31 	The court shall have order a children's mental health screening conducted when 
21.32 	a child is found to be delinquent. The screening shall be conducted with a screening 
21.33 	instrument approved by the commissioner of human services and shall be conducted by a 
21.34 	mental health practitioner as defined in section 245.4871, subdivision 26, or a probation 
21.35 	officer who is trained in the use of the screening instrument. If the screening indicates 
22.1 	a need for assessment, the local social services agency, in consultation with the child's 
22.2 	family, shall have a diagnostic assessment conducted, including a functional assessment, 
22.3 	as defined in section 245.4871. 
22.4 	With the consent of the commissioner of corrections and agreement of the county to 
22.5 	pay the costs thereof, the court may, by order, place a minor coming within its jurisdiction 
22.6 	in an institution maintained by the commissioner for the detention, diagnosis, custody and 
22.7 	treatment of persons adjudicated to be delinquent, in order that the condition of the minor 
22.8 	be given due consideration in the disposition of the case. Any funds received under the 
22.9 	provisions of this subdivision shall not cancel until the end of the fiscal year immediately 
22.10 	following the fiscal year in which the funds were received. The funds are available for 
22.11 	use by the commissioner of corrections during that period and are hereby appropriated 
22.12 	annually to the commissioner of corrections as reimbursement of the costs of providing 
22.13 	these services to the juvenile courts.

22.14 	Sec. 16. Minnesota Statutes 2006, section 260C.152, subdivision 5, is amended to read:
22.15 		Subd. 5.Notice to foster parents and preadoptive parents and relatives. The 
22.16 	foster parents, if any, of a child and any preadoptive parent or relative providing care 
22.17 	for the child must be provided notice of and an opportunity a right to be heard in any 
22.18 	review or hearing to be held with respect to the child. Any other relative may also request, 
22.19 	and must be granted, a notice and the opportunity to be heard under this section. This 
22.20 	subdivision does not require that a foster parent, preadoptive parent, or relative providing 
22.21 	care for the child be made a party to a review or hearing solely on the basis of the notice 
22.22 	and opportunity right to be heard.

22.23 	Sec. 17. Minnesota Statutes 2006, section 260C.163, subdivision 1, is amended to read:
22.24 		Subdivision 1.General. (a) Except for hearings arising under section 260C.425, 
22.25 	hearings on any matter shall be without a jury and may be conducted in an informal 
22.26 	manner. In all adjudicatory proceedings involving a child alleged to be in need of 
22.27 	protection or services, the court shall admit only evidence that would be admissible in a 
22.28 	civil trial. To be proved at trial, allegations of a petition alleging a child to be in need of 
22.29 	protection or services must be proved by clear and convincing evidence. 
22.30 	(b) Except for proceedings involving a child alleged to be in need of protection or 
22.31 	services and petitions for the termination of parental rights, hearings may be continued or 
22.32 	adjourned from time to time. In proceedings involving a child alleged to be in need of 
22.33 	protection or services and petitions for the termination of parental rights, hearings may not 
22.34 	be continued or adjourned for more than one week unless the court makes specific findings 
23.1 	that the continuance or adjournment is in the best interests of the child. If a hearing is held 
23.2 	on a petition involving physical or sexual abuse of a child who is alleged to be in need of 
23.3 	protection or services or neglected and in foster care, the court shall file the decision with 
23.4 	the court administrator as soon as possible but no later than 15 days after the matter is 
23.5 	submitted to the court. When a continuance or adjournment is ordered in any proceeding, 
23.6 	the court may make any interim orders as it deems in the best interests of the minor in 
23.7 	accordance with the provisions of sections 260C.001 to 260C.421. 
23.8 	(c) Except as otherwise provided in this paragraph, the court shall exclude the 
23.9 	general public from hearings under this chapter and shall admit only those persons who, in 
23.10 	the discretion of the court, have a direct interest in the case or in the work of the court.
23.11 	(d) Adoption hearings shall be conducted in accordance with the provisions of 
23.12 	laws relating to adoptions.
23.13 	(e) In any permanency hearing, including the transition of a child from foster care 
23.14 	to independent living, the court shall ensure that any consult with the child is in an 
23.15 	age-appropriate manner.

23.16 	Sec. 18. Minnesota Statutes 2006, section 260C.201, subdivision 11, is amended to 
23.17 	read:
23.18 		Subd. 11.Review of court-ordered placements; permanent placement 
23.19 	determination. (a) This subdivision and subdivision 11a do not apply in cases where 
23.20 	the child is in placement due solely to the child's developmental disability or emotional 
23.21 	disturbance, where legal custody has not been transferred to the responsible social services 
23.22 	agency, and where the court finds compelling reasons under section 260C.007, subdivision 
23.23 	8, to continue the child in foster care past the time periods specified in this subdivision. 
23.24 	Foster care placements of children due solely to their disability are governed by section 
23.25 	260C.141, subdivision 2a. In all other cases where the child is in foster care or in the care 
23.26 	of a noncustodial parent under subdivision 1, the court shall commence proceedings 
23.27 	to determine the permanent status of a child not later than 12 months after the child is 
23.28 	placed in foster care or in the care of a noncustodial parent. At the admit-deny hearing 
23.29 	commencing such proceedings, the court shall determine whether there is a prima facie 
23.30 	basis for finding that the agency made reasonable efforts, or in the case of an Indian 
23.31 	child active efforts, required under section 260.012 and proceed according to the rules of 
23.32 	juvenile court.
23.33 	For purposes of this subdivision, the date of the child's placement in foster care is 
23.34 	the earlier of the first court-ordered placement or 60 days after the date on which the 
23.35 	child has been voluntarily placed in foster care by the child's parent or guardian. For 
24.1 	purposes of this subdivision, time spent by a child under the protective supervision of 
24.2 	the responsible social services agency in the home of a noncustodial parent pursuant to 
24.3 	an order under subdivision 1 counts towards the requirement of a permanency hearing 
24.4 	under this subdivision or subdivision 11a. Time spent on a trial home visit does not count
24.5 	counts towards the requirement of a permanency hearing under this subdivision orand a 
24.6 	permanency review for a child under eight years of age under subdivision 11a.
24.7 	For purposes of this subdivision, 12 months is calculated as follows:
24.8 	(1) during the pendency of a petition alleging that a child is in need of protection 
24.9 	or services, all time periods when a child is placed in foster care or in the home of a 
24.10 	noncustodial parent are cumulated;
24.11 	(2) if a child has been placed in foster care within the previous five years under one 
24.12 	or more previous petitions, the lengths of all prior time periods when the child was placed 
24.13 	in foster care within the previous five years are cumulated. If a child under this clause 
24.14 	has been in foster care for 12 months or more, the court, if it is in the best interests of the 
24.15 	child and for compelling reasons, may extend the total time the child may continue out 
24.16 	of the home under the current petition up to an additional six months before making a 
24.17 	permanency determination.
24.18 	(b) Unless the responsible social services agency recommends return of the child 
24.19 	to the custodial parent or parents, not later than 30 days prior to the admit-deny hearing 
24.20 	required under paragraph (a) and the rules of juvenile court, the responsible social services 
24.21 	agency shall file pleadings in juvenile court to establish the basis for the juvenile court to 
24.22 	order permanent placement of the child, including a termination of parental rights petition, 
24.23 	according to paragraph (d). Notice of the hearing and copies of the pleadings must be 
24.24 	provided pursuant to section 260C.152.
24.25 	(c) The permanency proceedings shall be conducted in a timely fashion including 
24.26 	that any trial required under section 260C.163 shall be commenced within 60 days of the 
24.27 	admit-deny hearing required under paragraph (a). At the conclusion of the permanency 
24.28 	proceedings, the court shall:
24.29 	(1) order the child returned to the care of the parent or guardian from whom the 
24.30 	child was removed; or
24.31 	(2) order a permanent placement or termination of parental rights if permanent 
24.32 	placement or termination of parental rights is in the child's best interests. The "best 
24.33 	interests of the child" means all relevant factors to be considered and evaluated. Transfer 
24.34 	of permanent legal and physical custody, termination of parental rights, or guardianship 
24.35 	and legal custody to the commissioner through a consent to adopt are preferred 
24.36 	permanency options for a child who cannot return home.
25.1 	(d) If the child is not returned to the home, the court must order one of the following 
25.2 	dispositions:
25.3 	(1) permanent legal and physical custody to a relative in the best interests of the 
25.4 	child according to the following conditions:
25.5 	(i) an order for transfer of permanent legal and physical custody to a relative shall 
25.6 	only be made after the court has reviewed the suitability of the prospective legal and 
25.7 	physical custodian;
25.8 	(ii) in transferring permanent legal and physical custody to a relative, the juvenile 
25.9 	court shall follow the standards applicable under this chapter and chapter 260, and the 
25.10 	procedures set out in the juvenile court rules;
25.11 	(iii) an order establishing permanent legal and physical custody under this 
25.12 	subdivision must be filed with the family court;
25.13 	(iv) a transfer of legal and physical custody includes responsibility for the protection, 
25.14 	education, care, and control of the child and decision making on behalf of the child;
25.15 	(v) the social services agency may bring a petition or motion naming a fit and 
25.16 	willing relative as a proposed permanent legal and physical custodian. The commissioner 
25.17 	of human services shall annually prepare for counties information that must be given to 
25.18 	proposed custodians about their legal rights and obligations as custodians together with 
25.19 	information on financial and medical benefits for which the child is eligible; and
25.20 	(vi) the juvenile court may maintain jurisdiction over the responsible social services 
25.21 	agency, the parents or guardian of the child, the child, and the permanent legal and 
25.22 	physical custodian for purposes of ensuring appropriate services are delivered to the child 
25.23 	and permanent legal custodian or for the purpose of ensuring conditions ordered by the 
25.24 	court related to the care and custody of the child are met;
25.25 	(2) termination of parental rights when the requirements of sections 260C.301 to 
25.26 	260C.328 are met or according to the following conditions:
25.27 	(i) order the social services agency to file a petition for termination of parental 
25.28 	rights in which case all the requirements of sections 260C.301 to 260C.328 remain 
25.29 	applicable; and
25.30 	(ii) an adoption completed subsequent to a determination under this subdivision may 
25.31 	include an agreement for communication or contact under section 259.58;
25.32 	(3) long-term foster care according to the following conditions:
25.33 	(i) the court may order a child into long-term foster care only if it approves the 
25.34 	responsible social service agency's compelling reasons that neither an award of permanent 
25.35 	legal and physical custody to a relative, nor termination of parental rights is in the child's 
25.36 	best interests;
26.1 	(ii) further, the court may only order long-term foster care for the child under this 
26.2 	section if it finds the following:
26.3 	(A) the child has reached age 12 and the responsible social services agency has made 
26.4 	reasonable efforts to locate and place the child with an adoptive family or with a fit and 
26.5 	willing relative who will agree to a transfer of permanent legal and physical custody of 
26.6 	the child, but such efforts have not proven successful; or
26.7 	(B) the child is a sibling of a child described in subitem (A) and the siblings have 
26.8 	a significant positive relationship and are ordered into the same long-term foster care 
26.9 	home; and
26.10 	(iii) at least annually, the responsible social services agency reconsiders its provision 
26.11 	of services to the child and the child's placement in long-term foster care to ensure that:
26.12 	(A) long-term foster care continues to be the most appropriate legal arrangement 
26.13 	for meeting the child's need for permanency and stability, including whether there is 
26.14 	another permanent placement option under this chapter that would better serve the child's 
26.15 	needs and best interests;
26.16 	(B) whenever possible, there is an identified long-term foster care family that is 
26.17 	committed to being the foster family for the child as long as the child is a minor or under 
26.18 	the jurisdiction of the court;
26.19 	(C) the child is receiving appropriate services or assistance to maintain or build 
26.20 	connections with the child's family and community;
26.21 	(D) the child's physical and mental health needs are being appropriately provided 
26.22 	for; and
26.23 	(E) the child's educational needs are being met;
26.24 	(4) foster care for a specified period of time according to the following conditions:
26.25 	(i) foster care for a specified period of time may be ordered only if:
26.26 	(A) the sole basis for an adjudication that the child is in need of protection or 
26.27 	services is the child's behavior;
26.28 	(B) the court finds that foster care for a specified period of time is in the best 
26.29 	interests of the child; and
26.30 	(C) the court approves the responsible social services agency's compelling reasons 
26.31 	that neither an award of permanent legal and physical custody to a relative, nor termination 
26.32 	of parental rights is in the child's best interests;
26.33 	(ii) the order does not specify that the child continue in foster care for any period 
26.34 	exceeding one year; or
26.35 	(5) guardianship and legal custody to the commissioner of human services under 
26.36 	the following procedures and conditions:
27.1 	(i) there is an identified prospective adoptive home agreed to by the responsible 
27.2 	social services agency having legal custody of the child pursuant to court order under this 
27.3 	section that has agreed to adopt the child and the court accepts the parent's voluntary 
27.4 	consent to adopt under section 259.24, except that such consent executed by a parent under 
27.5 	this item, following proper notice that consent given under this provision is irrevocable 
27.6 	upon acceptance by the court, shall be irrevocable unless fraud is established and an order 
27.7 	issues permitting revocation as stated in item (vii);
27.8 	(ii) if the court accepts a consent to adopt in lieu of ordering one of the other 
27.9 	enumerated permanency dispositions, the court must review the matter at least every 90 
27.10 	days. The review will address the reasonable efforts of the agency to achieve a finalized 
27.11 	adoption;
27.12 	(iii) a consent to adopt under this clause vests all legal authority regarding the child, 
27.13 	including guardianship and legal custody of the child, with the commissioner of human 
27.14 	services as if the child were a state ward after termination of parental rights;
27.15 	(iv) the court must forward a copy of the consent to adopt, together with a certified 
27.16 	copy of the order transferring guardianship and legal custody to the commissioner, to 
27.17 	the commissioner;
27.18 	(v) if an adoption is not finalized by the identified prospective adoptive parent within 
27.19 	12 months of the execution of the consent to adopt under this clause, the commissioner of 
27.20 	human services or the commissioner's delegate shall pursue adoptive placement in another 
27.21 	home unless the commissioner certifies that the failure to finalize is not due to either an 
27.22 	action or a failure to act by the prospective adoptive parent;
27.23 	(vi) notwithstanding item (v), the commissioner of human services or the 
27.24 	commissioner's designee must pursue adoptive placement in another home as soon as the 
27.25 	commissioner or commissioner's designee determines that finalization of the adoption with 
27.26 	the identified prospective adoptive parent is not possible, that the identified prospective 
27.27 	adoptive parent is not willing to adopt the child, that the identified prospective adoptive 
27.28 	parent is not cooperative in completing the steps necessary to finalize the adoption, or 
27.29 	upon the commissioner's determination to withhold consent to the adoption.
27.30 	(vii) unless otherwise required by the Indian Child Welfare Act, United States Code, 
27.31 	title 25, section 1913, a consent to adopt executed under this section, following proper 
27.32 	notice that consent given under this provision is irrevocable upon acceptance by the court, 
27.33 	shall be irrevocable upon acceptance by the court except upon order permitting revocation 
27.34 	issued by the same court after written findings that consent was obtained by fraud.
27.35 	(e) In ordering a permanent placement of a child, the court must be governed by the 
27.36 	best interests of the child, including a review of the relationship between the child and 
28.1 	relatives and the child and other important persons with whom the child has resided or 
28.2 	had significant contact. When the court has determined that permanent placement of the 
28.3 	child away from the parent is necessary, the court shall consider permanent alternative 
28.4 	homes that are available both inside and outside the state.
28.5 	(f) Once a permanent placement determination has been made and permanent 
28.6 	placement has been established, further court reviews are necessary if:
28.7 	(1) the placement is long-term foster care or foster care for a specified period of time;
28.8 	(2) the court orders further hearings because it has retained jurisdiction of a transfer 
28.9 	of permanent legal and physical custody matter;
28.10 	(3) an adoption has not yet been finalized; or
28.11 	(4) there is a disruption of the permanent or long-term placement.
28.12 	(g) Court reviews of an order for long-term foster care, whether under this section 
28.13 	or section 260C.317, subdivision 3, paragraph (d), must be conducted at least yearly and 
28.14 	must review the child's out-of-home placement plan and the reasonable efforts of the 
28.15 	agency to finalize the permanent plan for the child including the agency's efforts to:
28.16 	(1) ensure that long-term foster care continues to be the most appropriate legal 
28.17 	arrangement for meeting the child's need for permanency and stability or, if not, to identify 
28.18 	and attempt to finalize another permanent placement option under this chapter that would 
28.19 	better serve the child's needs and best interests;
28.20 	(2) identify a specific long-term foster home for the child, if one has not already 
28.21 	been identified;
28.22 	(3) support continued placement of the child in the identified home, if one has been 
28.23 	identified;
28.24 	(4) ensure appropriate services are provided to address the physical health, mental 
28.25 	health, and educational needs of the child during the period of long-term foster care and 
28.26 	also ensure appropriate services or assistance to maintain relationships with appropriate 
28.27 	family members and the child's community; and
28.28 	(5) plan for the child's independence upon the child's leaving long-term foster care 
28.29 	living as required under section 260C.212, subdivision 1.
28.30 	(h) In the event it is necessary for a child that has been ordered into foster care for a 
28.31 	specified period of time to be in foster care longer than one year after the permanency 
28.32 	hearing held under this section, not later than 12 months after the time the child was 
28.33 	ordered into foster care for a specified period of time, the matter must be returned to 
28.34 	court for a review of the appropriateness of continuing the child in foster care and of the 
28.35 	responsible social services agency's reasonable efforts to finalize a permanent plan for 
28.36 	the child; if it is in the child's best interests to continue the order for foster care for a 
29.1 	specified period of time past a total of 12 months, the court shall set objectives for the 
29.2 	child's continuation in foster care, specify any further amount of time the child may be in 
29.3 	foster care, and review the plan for the safe return of the child to the parent.
29.4 	(i) An order permanently placing a child out of the home of the parent or guardian 
29.5 	must include the following detailed findings:
29.6 	(1) how the child's best interests are served by the order;
29.7 	(2) the nature and extent of the responsible social service agency's reasonable efforts, 
29.8 	or, in the case of an Indian child, active efforts to reunify the child with the parent or 
29.9 	guardian where reasonable efforts are required;
29.10 	(3) the parent's or parents' efforts and ability to use services to correct the conditions 
29.11 	which led to the out-of-home placement; and
29.12 	(4) that the conditions which led to the out-of-home placement have not been 
29.13 	corrected so that the child can safely return home.
29.14 	(j) An order for permanent legal and physical custody of a child may be modified 
29.15 	under sections 518.18 and 518.185. The social services agency is a party to the proceeding 
29.16 	and must receive notice. A parent may only seek modification of an order for long-term 
29.17 	foster care upon motion and a showing by the parent of a substantial change in the parent's 
29.18 	circumstances such that the parent could provide appropriate care for the child and that 
29.19 	removal of the child from the child's permanent placement and the return to the parent's 
29.20 	care would be in the best interest of the child. The responsible social services agency may 
29.21 	ask the court to vacate an order for long-term foster care upon a prima facie showing 
29.22 	that there is a factual basis for the court to order another permanency option under this 
29.23 	chapter and that such an option is in the child's best interests. Upon a hearing where 
29.24 	the court determines that there is a factual basis for vacating the order for long-term 
29.25 	foster care and that another permanent order regarding the placement of the child is in 
29.26 	the child's best interests, the court may vacate the order for long-term foster care and 
29.27 	enter a different order for permanent placement that is in the child's best interests. The 
29.28 	court shall not require further reasonable efforts to reunify the child with the parent or 
29.29 	guardian as a basis for vacating the order for long-term foster care and ordering a different 
29.30 	permanent placement in the child's best interests. The county attorney must file pleadings 
29.31 	and give notice as required under the rules of juvenile court in order to modify an order for 
29.32 	long-term foster care under this paragraph.
29.33 	(k) The court shall issue an order required under this section within 15 days of the 
29.34 	close of the proceedings. The court may extend issuing the order an additional 15 days 
29.35 	when necessary in the interests of justice and the best interests of the child.
30.1 	(l) This paragraph applies to proceedings required under this subdivision when 
30.2 	the child is on a trial home visit:
30.3 	(1) if the child is on a trial home visit 12 months after the child was placed in 
30.4 	foster care or in the care of a noncustodial parent as calculated in this subdivision, the 
30.5 	responsible social services agency may file a report with the court regarding the child's and 
30.6 	parent's progress on the trial home visit and its reasonable efforts to finalize the child's safe 
30.7 	and permanent return to the care of the parent in lieu of filing the pleadings required under 
30.8 	paragraph (b). The court shall make findings regarding reasonableness of the responsible 
30.9 	social services efforts to finalize the child's return home as the permanent order in the best 
30.10 	interests of the child. The court may continue the trial home visit to a total time not to 
30.11 	exceed six months as provided in subdivision 1. If the court finds the responsible social 
30.12 	services agency has not made reasonable efforts to finalize the child's return home as the 
30.13 	permanent order in the best interests of the child, the court may order other or additional 
30.14 	efforts to support the child remaining in the care of the parent; and
30.15 	(2) if a trial home visit ordered or continued at proceedings under this subdivision 
30.16 	terminates, the court shall re-commence proceedings under this subdivision to determine 
30.17 	the permanent status of the child not later than 30 days after the child is returned to foster 
30.18 	care.

30.19 	Sec. 19. Minnesota Statutes 2006, section 260C.212, subdivision 1, is amended to read:
30.20 		Subdivision 1.Out-of-home placement; plan. (a) An out-of-home placement plan 
30.21 	shall be prepared within 30 days after any child is placed in a residential facility by court 
30.22 	order or by the voluntary release of the child by the parent or parents.
30.23 	For purposes of this section, a residential facility means any group home, family 
30.24 	foster home or other publicly supported out-of-home residential facility, including any 
30.25 	out-of-home residential facility under contract with the state, county or other political 
30.26 	subdivision, or any agency thereof, to provide those services or foster care as defined in 
30.27 	section 260C.007, subdivision 18.
30.28 	(b) An out-of-home placement plan means a written document which is prepared by 
30.29 	the responsible social services agency jointly with the parent or parents or guardian of the 
30.30 	child and in consultation with the child's guardian ad litem, the child's tribe, if the child is 
30.31 	an Indian child, the child's foster parent or representative of the residential facility, and, 
30.32 	where appropriate, the child. For a child in placement due solely or in part to the child's 
30.33 	emotional disturbance, preparation of the out-of-home placement plan shall additionally 
30.34 	include the child's mental health treatment provider. As appropriate, the plan shall be:
30.35 	(1) submitted to the court for approval under section 260C.178, subdivision 7;
31.1 	(2) ordered by the court, either as presented or modified after hearing, under section 
31.2 	260C.178, subdivision 7, or 260C.201, subdivision 6; and
31.3 	(3) signed by the parent or parents or guardian of the child, the child's guardian ad 
31.4 	litem, a representative of the child's tribe, the responsible social services agency, and, if 
31.5 	possible, the child.
31.6 	(c) The out-of-home placement plan shall be explained to all persons involved in its 
31.7 	implementation, including the child who has signed the plan, and shall set forth:
31.8 	(1) a description of the residential facility including how the out-of-home placement 
31.9 	plan is designed to achieve a safe placement for the child in the least restrictive, most 
31.10 	family-like, setting available which is in close proximity to the home of the parent or 
31.11 	parents or guardian of the child when the case plan goal is reunification, and how the 
31.12 	placement is consistent with the best interests and special needs of the child according to 
31.13 	the factors under subdivision 2, paragraph (b);
31.14 	(2) the specific reasons for the placement of the child in a residential facility, and 
31.15 	when reunification is the plan, a description of the problems or conditions in the home of 
31.16 	the parent or parents which necessitated removal of the child from home and the changes 
31.17 	the parent or parents must make in order for the child to safely return home;
31.18 	(3) a description of the services offered and provided to prevent removal of the child 
31.19 	from the home and to reunify the family including:
31.20 	(i) the specific actions to be taken by the parent or parents of the child to eliminate 
31.21 	or correct the problems or conditions identified in clause (2), and the time period during 
31.22 	which the actions are to be taken; and
31.23 	(ii) the reasonable efforts, or in the case of an Indian child, active efforts to be made 
31.24 	to achieve a safe and stable home for the child including social and other supportive 
31.25 	services to be provided or offered to the parent or parents or guardian of the child, the 
31.26 	child, and the residential facility during the period the child is in the residential facility;
31.27 	(4) a description of any services or resources that were requested by the child or the 
31.28 	child's parent, guardian, foster parent, or custodian since the date of the child's placement 
31.29 	in the residential facility, and whether those services or resources were provided and if 
31.30 	not, the basis for the denial of the services or resources;
31.31 	(5) the visitation plan for the parent or parents or guardian, other relatives as defined 
31.32 	in section 260C.007, subdivision 27, and siblings of the child if the siblings are not placed 
31.33 	together in the residential facility, and whether visitation is consistent with the best interest 
31.34 	of the child, during the period the child is in the residential facility;
31.35 	(6) documentation of steps to finalize the adoption or legal guardianship of the child 
31.36 	if the court has issued an order terminating the rights of both parents of the child or of 
32.1 	the only known, living parent of the child, and. At a minimum, the documentation must 
32.2 	include child-specific recruitment efforts such as relative search and the use of state, 
32.3 	regional, and national adoption exchanges to facilitate orderly and timely placements in 
32.4 	and outside of the state. A copy of this documentation shall be provided to the court in the 
32.5 	review required under section 260C.317, subdivision 3, paragraph (b);
32.6 	(7) to the extent available and accessible, the health and educational records of the 
32.7 	child including the most recent information available regarding:
32.8 	(i) the names and addresses of the child's health and educational providers;
32.9 	(ii) the child's grade level performance;
32.10 	(iii) the child's school record;
32.11 	(iv) assurances that the child's placement in foster care takes into account proximity 
32.12 	to the school in which the child is enrolled at the time of placement;
32.13 	(v) a record of the child's immunizations;
32.14 	(vi) the child's known medical problems, including any known communicable 
32.15 	diseases, as defined in section 144.4172, subdivision 2;
32.16 	(vii) the child's medications; and
32.17 	(viii) any other relevant health and education information;
32.18 	(8) an independent living plan for a child age 16 or older who is in placement as 
32.19 	a result of a permanency disposition. The plan should include, but not be limited to, 
32.20 	the following objectives:
32.21 	(i) educational, vocational, or employment planning;
32.22 	(ii) health care planning and medical coverage;
32.23 	(iii) transportation including, where appropriate, assisting the child in obtaining a 
32.24 	driver's license;
32.25 	(iv) money management;
32.26 	(v) planning for housing;
32.27 	(vi) social and recreational skills; and
32.28 	(vii) establishing and maintaining connections with the child's family and 
32.29 	community; and
32.30 	(9) for a child in placement due solely or in part to the child's emotional disturbance, 
32.31 	diagnostic and assessment information, specific services relating to meeting the mental 
32.32 	health care needs of the child, and treatment outcomes.
32.33 	(d) The parent or parents or guardian and the child each shall have the right to legal 
32.34 	counsel in the preparation of the case plan and shall be informed of the right at the time 
32.35 	of placement of the child. The child shall also have the right to a guardian ad litem. 
32.36 	If unable to employ counsel from their own resources, the court shall appoint counsel 
33.1 	upon the request of the parent or parents or the child or the child's legal guardian. The 
33.2 	parent or parents may also receive assistance from any person or social services agency 
33.3 	in preparation of the case plan.
33.4 	After the plan has been agreed upon by the parties involved or approved or ordered 
33.5 	by the court, the foster parents shall be fully informed of the provisions of the case plan 
33.6 	and shall be provided a copy of the plan.
33.7 	Upon discharge from foster care, the parent, adoptive parent, or permanent legal and 
33.8 	physical custodian, as appropriate, and the child, if appropriate, must be provided with 
33.9 	a current copy of the child's health and education record.

33.10 	Sec. 20. Minnesota Statutes 2006, section 260C.212, subdivision 4, is amended to read:
33.11 		Subd. 4.Responsible social service agency's duties for children in placement. (a) 
33.12 	When a child is in placement, the responsible social services agency shall make diligent 
33.13 	efforts to identify, locate, and, where appropriate, offer services to both parents of the child.
33.14 	(1) The responsible social services agency shall assess whether a noncustodial or 
33.15 	nonadjudicated parent is willing and capable of providing for the day-to-day care of the 
33.16 	child temporarily or permanently. An assessment under this clause may include, but 
33.17 	is not limited to, obtaining information under section 260C.209. If after assessment, 
33.18 	the responsible social services agency determines that a noncustodial or nonadjudicated 
33.19 	parent is willing and capable of providing day-to-day care of the child, the responsible 
33.20 	social services agency may seek authority from the custodial parent or the court to have 
33.21 	that parent assume day-to-day care of the child. If a parent is not an adjudicated parent, 
33.22 	the responsible social services agency shall require the nonadjudicated parent to cooperate 
33.23 	with paternity establishment procedures as part of the case plan.
33.24 	(2) If, after assessment, the responsible social services agency determines that the 
33.25 	child cannot be in the day-to-day care of either parent, the agency shall:
33.26 	(i) prepare an out-of-home placement plan addressing the conditions that each parent 
33.27 	must meet before the child can be in that parent's day-to-day care; and
33.28 	(ii) provide a parent who is the subject of a background study under section 
33.29 	260C.209 15 days' notice that it intends to use the study to recommend against putting the 
33.30 	child with that parent, as well as the notice provided in section 260C.209, subdivision 4, 
33.31 	and the court shall afford the parent an opportunity to be heard concerning the study.
33.32 	The results of a background study of a noncustodial parent shall not be used by the 
33.33 	agency to determine that the parent is incapable of providing day-to-day care of the child 
33.34 	unless the agency reasonably believes that placement of the child into the home of that 
33.35 	parent would endanger the child's health, safety, or welfare.
34.1 	(3) If, after the provision of services following an out-of-home placement plan under 
34.2 	this section, the child cannot return to the care of the parent from whom the child was 
34.3 	removed or who had legal custody at the time the child was placed in foster care, the 
34.4 	agency may petition on behalf of a noncustodial parent to establish legal custody with 
34.5 	that parent under section 260C.201, subdivision 11. If paternity has not already been 
34.6 	established, it may be established in the same proceeding in the manner provided for 
34.7 	under chapter 257.
34.8 	(4) The responsible social services agency may be relieved of the requirement to 
34.9 	locate and offer services to both parents by the juvenile court upon a finding of good cause 
34.10 	after the filing of a petition under section 260C.141.
34.11 	(b) The responsible social services agency shall give notice to the parent or parents 
34.12 	or guardian of each child in a residential facility, other than a child in placement due 
34.13 	solely to that child's developmental disability or emotional disturbance, of the following 
34.14 	information:
34.15 	(1) that residential care of the child may result in termination of parental rights or an 
34.16 	order permanently placing the child out of the custody of the parent, but only after notice 
34.17 	and a hearing as required under chapter 260C and the juvenile court rules;
34.18 	(2) time limits on the length of placement and of reunification services, including 
34.19 	the date on which the child is expected to be returned to and safely maintained in the 
34.20 	home of the parent or parents or placed for adoption or otherwise permanently removed 
34.21 	from the care of the parent by court order;
34.22 	(3) the nature of the services available to the parent;
34.23 	(4) the consequences to the parent and the child if the parent fails or is unable to use 
34.24 	services to correct the circumstances that led to the child's placement;
34.25 	(5) the first consideration for placement with relatives;
34.26 	(6) the benefit to the child in getting the child out of residential care as soon as 
34.27 	possible, preferably by returning the child home, but if that is not possible, through a 
34.28 	permanent legal placement of the child away from the parent;
34.29 	(7) when safe for the child, the benefits to the child and the parent of maintaining 
34.30 	visitation with the child as soon as possible in the course of the case and, in any event, 
34.31 	according to the visitation plan under this section; and
34.32 	(8) the financial responsibilities and obligations, if any, of the parent or parents for 
34.33 	the support of the child during the period the child is in the residential facility.
34.34 	(c) The responsible social services agency shall inform a parent considering 
34.35 	voluntary placement of a child who is not developmentally disabled or emotionally 
34.36 	disturbed of the following information:
35.1 	(1) the parent and the child each has a right to separate legal counsel before signing a 
35.2 	voluntary placement agreement, but not to counsel appointed at public expense;
35.3 	(2) the parent is not required to agree to the voluntary placement, and a parent 
35.4 	who enters a voluntary placement agreement may at any time request that the agency 
35.5 	return the child. If the parent so requests, the child must be returned within 24 hours of 
35.6 	the receipt of the request;
35.7 	(3) evidence gathered during the time the child is voluntarily placed may be used 
35.8 	at a later time as the basis for a petition alleging that the child is in need of protection 
35.9 	or services or as the basis for a petition seeking termination of parental rights or other 
35.10 	permanent placement of the child away from the parent;
35.11 	(4) if the responsible social services agency files a petition alleging that the child is 
35.12 	in need of protection or services or a petition seeking the termination of parental rights 
35.13 	or other permanent placement of the child away from the parent, the parent would have 
35.14 	the right to appointment of separate legal counsel and the child would have a right to the 
35.15 	appointment of counsel and a guardian ad litem as provided by law, and that counsel will 
35.16 	be appointed at public expense if they are unable to afford counsel; and
35.17 	(5) the timelines and procedures for review of voluntary placements under 
35.18 	subdivision 3, and the effect the time spent in voluntary placement on the scheduling of a 
35.19 	permanent placement determination hearing under section 260C.201, subdivision 11.
35.20 	(d) When an agency accepts a child for placement, the agency shall determine 
35.21 	whether the child has had a physical examination by or under the direction of a licensed 
35.22 	physician within the 12 months immediately preceding the date when the child came into 
35.23 	the agency's care. If there is documentation that the child has had an examination within 
35.24 	the last 12 months, the agency is responsible for seeing that the child has another physical 
35.25 	examination within one year of the documented examination and annually in subsequent 
35.26 	years. If the agency determines that the child has not had a physical examination within 
35.27 	the 12 months immediately preceding placement, the agency shall ensure that the child 
35.28 	has an examination within 30 days of coming into the agency's care and once a year 
35.29 	in subsequent years.
35.30 	(e) If a child leaves foster care by reason of having attained the age of majority 
35.31 	under state law, the child must be given at no cost a copy of the child's health and 
35.32 	education report.

35.33 	Sec. 21. Minnesota Statutes 2006, section 260C.212, subdivision 9, is amended to read:
35.34 		Subd. 9.Review of certain child placements. (a) When a developmentally 
35.35 	disabled child or emotionally disturbed child needs placement in a residential facility for 
36.1 	the sole reason of accessing services or a level of skilled care that cannot be provided in 
36.2 	the parent's home, the child must be placed pursuant to a voluntary placement agreement 
36.3 	between the responsible social services agency and the child's parent. The voluntary 
36.4 	placement agreement must give the responsible social services agency legal responsibility 
36.5 	for the child's physical care, custody, and control, but must not transfer legal custody of 
36.6 	the child to the agency. The voluntary placement agreement must be executed in a form 
36.7 	developed and promulgated by the commissioner of human services. The responsible 
36.8 	social services agency shall report to the commissioner the number of children who are the 
36.9 	subject of a voluntary placement agreement under this subdivision and other information 
36.10 	regarding these children as the commissioner may require.
36.11 	(b) If a developmentally disabled child or a child diagnosed as emotionally disturbed 
36.12 	has been placed in a residential facility pursuant to a voluntary release by the child's parent 
36.13 	or parents because of the child's disabling conditions or need for long-term residential 
36.14 	treatment or supervision, the social services agency responsible for the placement shall 
36.15 	report to the court and bring a petition for review of the child's foster care status as 
36.16 	required in section 260C.141, subdivision 2a. 
36.17 	(b)(c) If a child is in placement due solely to the child's developmental disability or 
36.18 	emotional disturbance, and the court finds compelling reasons not to proceed under section 
36.19 	260C.201, subdivision 11, and custody of the child is not transferred to the responsible 
36.20 	social services agency under section 260C.201, subdivision 1, paragraph (a), clause (2), 
36.21 	and no petition is required by section 260C.201, subdivision 11. 
36.22 	(c)(d) Whenever a petition for review is brought pursuant to this subdivision, a 
36.23 	guardian ad litem shall be appointed for the child.

36.24 	Sec. 22. Minnesota Statutes 2006, section 260C.317, subdivision 3, is amended to read:
36.25 		Subd. 3.Order; retention of jurisdiction. (a) A certified copy of the findings and 
36.26 	the order terminating parental rights, and a summary of the court's information concerning 
36.27 	the child shall be furnished by the court to the commissioner or the agency to which 
36.28 	guardianship is transferred. The orders shall be on a document separate from the findings. 
36.29 	The court shall furnish the individual to whom guardianship is transferred a copy of the 
36.30 	order terminating parental rights.
36.31 	(b) The court shall retain jurisdiction in a case where adoption is the intended 
36.32 	permanent placement disposition until the child's adoption is finalized, the child is 18 years 
36.33 	of age, or the child is otherwise ordered discharged from the jurisdiction of the court. The 
36.34 	guardian ad litem and counsel for the child shall continue on the case until an adoption 
36.35 	decree is entered. A hearing must be held every 90 days following termination of parental 
37.1 	rights for the court to review progress toward an adoptive placement and the specific 
37.2 	recruitment efforts the agency has taken to find an adoptive family or other placement 
37.3 	living arrangement for the child and to finalize the adoption or other permanency plan.
37.4 	(c) The responsible social services agency may make a determination of compelling 
37.5 	reasons for a child to be in long-term foster care when the agency has made exhaustive 
37.6 	efforts to recruit, identify, and place the child in an adoptive home, and the child continues 
37.7 	in foster care for at least 24 months after the court has issued the order terminating 
37.8 	parental rights. A child of any age who is under the guardianship of the commissioner of 
37.9 	the Department of Human Services and is legally available for adoption may not refuse 
37.10 	or waive the commissioner's agent's exhaustive efforts to recruit, identify, and place the 
37.11 	child in an adoptive home required under paragraph (b) or sign a document relieving 
37.12 	county social services agencies of all recruitment efforts on the child's behalf. Upon 
37.13 	approving the agency's determination of compelling reasons, the court may order the 
37.14 	child placed in long-term foster care. At least every 12 months thereafter as long as the 
37.15 	child continues in out-of-home placement, the court shall conduct a permanency review 
37.16 	hearing to determine the future status of the child using the review requirements of section 
37.17 	260C.201, subdivision 11, paragraph (g).
37.18 	(d) The court shall retain jurisdiction through the child's minority in a case where 
37.19 	long-term foster care is the permanent disposition whether under paragraph (c) or section 
37.20 	260C.201, subdivision 11.

37.21 	Sec. 23. Minnesota Statutes 2006, section 260C.331, subdivision 1, is amended to read:
37.22 		Subdivision 1.Care, examination, or treatment. (a) Except where parental rights 
37.23 	are terminated,
37.24 	(1) whenever legal custody of a child is transferred by the court to a responsible 
37.25 	social services agency,
37.26 	(2) whenever legal custody is transferred to a person other than the responsible social 
37.27 	services agency, but under the supervision of the responsible social services agency, or
37.28 	(3) whenever a child is given physical or mental examinations or treatment under 
37.29 	order of the court, and no provision is otherwise made by law for payment for the care, 
37.30 	examination, or treatment of the child, these costs are a charge upon the welfare funds of 
37.31 	the county in which proceedings are held upon certification of the judge of juvenile court.
37.32 	(b) The court shall order, and the responsible social services agency shall require, 
37.33 	the parents or custodian of a child, while the child is under the age of 18, to use the 
37.34 	total income and resources attributable to the child for the period of care, examination, 
37.35 	or treatment, except for clothing and personal needs allowance as provided in section 
38.1 	256B.35, to reimburse the county for the cost of care, examination, or treatment. Income 
38.2 	and resources attributable to the child include, but are not limited to, Social Security 
38.3 	benefits, supplemental security income (SSI), veterans benefits, railroad retirement 
38.4 	benefits and child support. When the child is over the age of 18, and continues to receive 
38.5 	care, examination, or treatment, the court shall order, and the responsible social services 
38.6 	agency shall require, reimbursement from the child for the cost of care, examination, or 
38.7 	treatment from the income and resources attributable to the child less the clothing and 
38.8 	personal needs allowance. Income does not include earnings from a child over the age of 
38.9 	18 who is working as part of a plan under section 260C.212, subdivision 1, paragraph (c), 
38.10 	clause (8), to transition from foster care.
38.11 	(c) If the income and resources attributable to the child are not enough to reimburse 
38.12 	the county for the full cost of the care, examination, or treatment, the court shall inquire 
38.13 	into the ability of the parents to support the child and, after giving the parents a reasonable 
38.14 	opportunity to be heard, the court shall order, and the responsible social services agency 
38.15 	shall require, the parents to contribute to the cost of care, examination, or treatment of 
38.16 	the child. When determining the amount to be contributed by the parents, the court shall 
38.17 	use a fee schedule based upon ability to pay that is established by the responsible social 
38.18 	services agency and approved by the commissioner of human services. The income of 
38.19 	a stepparent who has not adopted a child shall be excluded in calculating the parental 
38.20 	contribution under this section.
38.21 	(d) The court shall order the amount of reimbursement attributable to the parents 
38.22 	or custodian, or attributable to the child, or attributable to both sources, withheld under 
38.23 	chapter 518A from the income of the parents or the custodian of the child. A parent or 
38.24 	custodian who fails to pay without good reason may be proceeded against for contempt, or 
38.25 	the court may inform the county attorney, who shall proceed to collect the unpaid sums, 
38.26 	or both procedures may be used.
38.27 	(e) If the court orders a physical or mental examination for a child, the examination 
38.28 	is a medically necessary service for purposes of determining whether the service is 
38.29 	covered by a health insurance policy, health maintenance contract, or other health 
38.30 	coverage plan. Court-ordered treatment shall be subject to policy, contract, or plan 
38.31 	requirements for medical necessity. Nothing in this paragraph changes or eliminates 
38.32 	benefit limits, conditions of coverage, co-payments or deductibles, provider restrictions, 
38.33 	or other requirements in the policy, contract, or plan that relate to coverage of other 
38.34 	medically necessary services.

38.35 	Sec. 24. Minnesota Statutes 2006, section 626.556, subdivision 2, is amended to read:
39.1 		Subd. 2.Definitions. As used in this section, the following terms have the meanings 
39.2 	given them unless the specific content indicates otherwise:
39.3 	(a) "Family assessment" means a comprehensive assessment of child safety, risk 
39.4 	of subsequent child maltreatment, and family strengths and needs that is applied to a 
39.5 	child maltreatment report that does not allege substantial child endangerment. Family 
39.6 	assessment does not include a determination as to whether child maltreatment occurred 
39.7 	but does determine the need for services to address the safety of family members and the 
39.8 	risk of subsequent maltreatment.
39.9 	(b) "Investigation" means fact gathering related to the current safety of a child 
39.10 	and the risk of subsequent maltreatment that determines whether child maltreatment 
39.11 	occurred and whether child protective services are needed. An investigation must be used 
39.12 	when reports involve substantial child endangerment, and for reports of maltreatment in 
39.13 	facilities required to be licensed under chapter 245A or 245B; under sections 144.50 to 
39.14 	144.58 and 241.021; in a school as defined in sections 120A.05, subdivisions 9, 11, and 
39.15 	13, and 124D.10; or in a nonlicensed personal care provider association as defined in 
39.16 	sections 256B.04, subdivision 16, and 256B.0625, subdivision 19a.
39.17 	(c) "Substantial child endangerment" means a person responsible for a child's care, 
39.18 	and in the case of sexual abuse includes a person who has a significant relationship to the 
39.19 	child as defined in section 609.341, or a person in a position of authority as defined in 
39.20 	section 609.341, who by act or omission commits or attempts to commit an act against a 
39.21 	child under their care that constitutes any of the following:
39.22 	(1) egregious harm as defined in section 260C.007, subdivision 14;
39.23 	(2) sexual abuse as defined in paragraph (d);
39.24 	(3) abandonment under section 260C.301, subdivision 2;
39.25 	(4) neglect as defined in paragraph (f), clause (2), that substantially endangers the 
39.26 	child's physical or mental health, including a growth delay, which may be referred to as 
39.27 	failure to thrive, that has been diagnosed by a physician and is due to parental neglect;
39.28 	(5) murder in the first, second, or third degree under section 609.185, 609.19, or 
39.29 	609.195;
39.30 	(6) manslaughter in the first or second degree under section 609.20 or 609.205;
39.31 	(7) assault in the first, second, or third degree under section 609.221, 609.222, or 
39.32 	609.223;
39.33 	(8) solicitation, inducement, and promotion of prostitution under section 609.322;
39.34 	(9) criminal sexual conduct under sections 609.342 to 609.3451;
39.35 	(10) solicitation of children to engage in sexual conduct under section 609.352;
40.1 	(11) malicious punishment or neglect or endangerment of a child under section 
40.2 	609.377 or 609.378;
40.3 	(12) use of a minor in sexual performance under section 617.246; or
40.4 	(13) parental behavior, status, or condition which mandates that the county attorney 
40.5 	file a termination of parental rights petition under section 260C.301, subdivision 3, 
40.6 	paragraph (a).
40.7 	(d) "Sexual abuse" means the subjection of a child by a person responsible for the 
40.8 	child's care, by a person who has a significant relationship to the child, as defined in 
40.9 	section 609.341, or by a person in a position of authority, as defined in section 609.341, 
40.10 	subdivision 10, to any act which constitutes a violation of section 609.342 (criminal sexual 
40.11 	conduct in the first degree), 609.343 (criminal sexual conduct in the second degree), 
40.12 	609.344 (criminal sexual conduct in the third degree), 609.345 (criminal sexual conduct 
40.13 	in the fourth degree), or 609.3451 (criminal sexual conduct in the fifth degree). Sexual 
40.14 	abuse also includes any act which involves a minor which constitutes a violation of 
40.15 	prostitution offenses under sections 609.321 to 609.324 or 617.246. Sexual abuse includes 
40.16 	threatened sexual abuse.
40.17 	(e) "Person responsible for the child's care" means (1) an individual functioning 
40.18 	within the family unit and having responsibilities for the care of the child such as a 
40.19 	parent, guardian, or other person having similar care responsibilities, or (2) an individual 
40.20 	functioning outside the family unit and having responsibilities for the care of the child 
40.21 	such as a teacher, school administrator, other school employees or agents, or other lawful 
40.22 	custodian of a child having either full-time or short-term care responsibilities including, 
40.23 	but not limited to, day care, babysitting whether paid or unpaid, counseling, teaching, 
40.24 	and coaching.
40.25 	(f) "Neglect" means:
40.26 	(1) failure by a person responsible for a child's care to supply a child with necessary 
40.27 	food, clothing, shelter, health, medical, or other care required for the child's physical or 
40.28 	mental health when reasonably able to do so;
40.29 	(2) failure to protect a child from conditions or actions that seriously endanger the 
40.30 	child's physical or mental health when reasonably able to do so, including a growth delay, 
40.31 	which may be referred to as a failure to thrive, that has been diagnosed by a physician and 
40.32 	is due to parental neglect;
40.33 	(3) failure to provide for necessary supervision or child care arrangements 
40.34 	appropriate for a child after considering factors as the child's age, mental ability, physical 
40.35 	condition, length of absence, or environment, when the child is unable to care for the 
40.36 	child's own basic needs or safety, or the basic needs or safety of another child in their care;
41.1 	(4) failure to ensure that the child is educated as defined in sections 120A.22 and 
41.2 	260C.163, subdivision 11, which does not include a parent's refusal to provide the parent's 
41.3 	child with sympathomimetic medications, consistent with section 125A.091, subdivision 5;
41.4 	(5) nothing in this section shall be construed to mean that a child is neglected solely 
41.5 	because the child's parent, guardian, or other person responsible for the child's care in 
41.6 	good faith selects and depends upon spiritual means or prayer for treatment or care of 
41.7 	disease or remedial care of the child in lieu of medical care; except that a parent, guardian, 
41.8 	or caretaker, or a person mandated to report pursuant to subdivision 3, has a duty to report 
41.9 	if a lack of medical care may cause serious danger to the child's health. This section does 
41.10 	not impose upon persons, not otherwise legally responsible for providing a child with 
41.11 	necessary food, clothing, shelter, education, or medical care, a duty to provide that care;
41.12 	(6) prenatal exposure to a controlled substance, as defined in section 253B.02, 
41.13 	subdivision 2, used by the mother for a nonmedical purpose, as evidenced by withdrawal 
41.14 	symptoms in the child at birth, results of a toxicology test performed on the mother at 
41.15 	delivery or the child at birth, or medical effects or developmental delays during the child's 
41.16 	first year of life that medically indicate prenatal exposure to a controlled substance;
41.17 	(7) "medical neglect" as defined in section 260C.007, subdivision 6, clause (5);
41.18 	(8) chronic and severe use of alcohol or a controlled substance by a parent or 
41.19 	person responsible for the care of the child that adversely affects the child's basic needs 
41.20 	and safety; or
41.21 	(9) emotional harm from a pattern of behavior which contributes to impaired 
41.22 	emotional functioning of the child which may be demonstrated by a substantial and 
41.23 	observable effect in the child's behavior, emotional response, or cognition that is not 
41.24 	within the normal range for the child's age and stage of development, with due regard to 
41.25 	the child's culture.
41.26 	(g) "Physical abuse" means any physical injury, mental injury, or threatened injury, 
41.27 	inflicted by a person responsible for the child's care on a child other than by accidental 
41.28 	means, or any physical or mental injury that cannot reasonably be explained by the child's 
41.29 	history of injuries, or any aversive or deprivation procedures, or regulated interventions, 
41.30 	that have not been authorized under section 121A.67 or 245.825. Abuse does not include 
41.31 	reasonable and moderate physical discipline of a child administered by a parent or legal 
41.32 	guardian which does not result in an injury. Abuse does not include the use of reasonable 
41.33 	force by a teacher, principal, or school employee as allowed by section 121A.582. Actions 
41.34 	which are not reasonable and moderate include, but are not limited to, any of the following 
41.35 	that are done in anger or without regard to the safety of the child:
41.36 	(1) throwing, kicking, burning, biting, or cutting a child;
42.1 	(2) striking a child with a closed fist;
42.2 	(3) shaking a child under age three;
42.3 	(4) striking or other actions which result in any nonaccidental injury to a child 
42.4 	under 18 months of age;
42.5 	(5) unreasonable interference with a child's breathing;
42.6 	(6) threatening a child with a weapon, as defined in section 609.02, subdivision 6;
42.7 	(7) striking a child under age one on the face or head;
42.8 	(8) purposely giving a child poison, alcohol, or dangerous, harmful, or controlled 
42.9 	substances which were not prescribed for the child by a practitioner, in order to control or 
42.10 	punish the child; or other substances that substantially affect the child's behavior, motor 
42.11 	coordination, or judgment or that results in sickness or internal injury, or subjects the 
42.12 	child to medical procedures that would be unnecessary if the child were not exposed 
42.13 	to the substances;
42.14 	(9) unreasonable physical confinement or restraint not permitted under section 
42.15 	609.379, including but not limited to tying, caging, or chaining; or
42.16 	(10) in a school facility or school zone, an act by a person responsible for the child's 
42.17 	care that is a violation under section 121A.58.
42.18 	(h) "Report" means any report received by the local welfare agency, police 
42.19 	department, county sheriff, or agency responsible for assessing or investigating 
42.20 	maltreatment pursuant to this section.
42.21 	(i) "Facility" means: 
42.22 	(1) a licensed or unlicensed day care facility, residential facility, agency, hospital, 
42.23 	sanitarium, or other facility or institution required to be licensed under sections 144.50 to 
42.24 	144.58, 241.021, or 245A.01 to 245A.16, or chapter 245B; 
42.25 	(2) a school as defined in sections 120A.05, subdivisions 9, 11, and 13; and 
42.26 	124D.10; or 
42.27 	(3) a nonlicensed personal care provider organization as defined in sections 256B.04, 
42.28 	subdivision 16, and 256B.0625, subdivision 19a.
42.29 	(j) "Operator" means an operator or agency as defined in section 245A.02.
42.30 	(k) "Commissioner" means the commissioner of human services.
42.31 	(l) "Practice of social services," for the purposes of subdivision 3, includes but is 
42.32 	not limited to employee assistance counseling and the provision of guardian ad litem and 
42.33 	parenting time expeditor services.
42.34 	(m) "Mental injury" means an injury to the psychological capacity or emotional 
42.35 	stability of a child as evidenced by an observable or substantial impairment in the child's 
43.1 	ability to function within a normal range of performance and behavior with due regard to 
43.2 	the child's culture.
43.3 	(n) "Threatened injury" means a statement, overt act, condition, or status that 
43.4 	represents a substantial risk of physical or sexual abuse or mental injury. Threatened 
43.5 	injury includes, but is not limited to, exposing a child to a person responsible for the 
43.6 	child's care, as defined in paragraph (e), clause (1), who has:
43.7 	(1) subjected a child to, or failed to protect a child from, an overt act or condition 
43.8 	that constitutes egregious harm, as defined in section 260C.007, subdivision 14, or a 
43.9 	similar law of another jurisdiction;
43.10 	(2) been found to be palpably unfit under section 260C.301, paragraph (b), clause 
43.11 	(4), or a similar law of another jurisdiction;
43.12 	(3) committed an act that has resulted in an involuntary termination of parental rights 
43.13 	under section 260C.301, or a similar law of another jurisdiction; or
43.14 	(4) committed an act that has resulted in the involuntary transfer of permanent legal 
43.15 	and physical custody of a child to a relative under section 260C.201, subdivision 11, 
43.16 	paragraph (d), clause (1), or a similar law of another jurisdiction.
43.17 	(o) Persons who conduct assessments or investigations under this section shall take 
43.18 	into account accepted child-rearing practices of the culture in which a child participates 
43.19 	and accepted teacher discipline practices, which are not injurious to the child's health, 
43.20 	welfare, and safety.

43.21 	Sec. 25. Minnesota Statutes 2006, section 626.556, subdivision 3, is amended to read:
43.22 		Subd. 3.Persons mandated to report. (a) A person who knows or has reason 
43.23 	to believe a child is being neglected or physically or sexually abused, as defined in 
43.24 	subdivision 2, or has been neglected or physically or sexually abused within the preceding 
43.25 	three years, shall immediately report the information to the local welfare agency, agency 
43.26 	responsible for assessing or investigating the report, police department, or the county 
43.27 	sheriff if the person is:
43.28 	(1) a professional or professional's delegate who is engaged in the practice of 
43.29 	the healing arts, social services, hospital administration, psychological or psychiatric 
43.30 	treatment, child care, education, correctional supervision, probation and correctional 
43.31 	services, or law enforcement; or
43.32 	(2) employed as a member of the clergy and received the information while 
43.33 	engaged in ministerial duties, provided that a member of the clergy is not required by 
43.34 	this subdivision to report information that is otherwise privileged under section 595.02, 
43.35 	subdivision 1, paragraph (c).
44.1 	The police department or the county sheriff, upon receiving a report, shall 
44.2 	immediately notify the local welfare agency or agency responsible for assessing or 
44.3 	investigating the report, orally and in writing. The local welfare agency, or agency 
44.4 	responsible for assessing or investigating the report, upon receiving a report, shall 
44.5 	immediately notify the local police department or the county sheriff orally and in writing. 
44.6 	The county sheriff and the head of every local welfare agency, agency responsible 
44.7 	for assessing or investigating reports, and police department shall each designate a 
44.8 	person within their agency, department, or office who is responsible for ensuring that 
44.9 	the notification duties of this paragraph and paragraph (b) are carried out. Nothing in 
44.10 	this subdivision shall be construed to require more than one report from any institution, 
44.11 	facility, school, or agency.
44.12 	(b) Any person may voluntarily report to the local welfare agency, agency 
44.13 	responsible for assessing or investigating the report, police department, or the county 
44.14 	sheriff if the person knows, has reason to believe, or suspects a child is being or has been 
44.15 	neglected or subjected to physical or sexual abuse. The police department or the county 
44.16 	sheriff, upon receiving a report, shall immediately notify the local welfare agency or 
44.17 	agency responsible for assessing or investigating the report, orally and in writing. The 
44.18 	local welfare agency or agency responsible for assessing or investigating the report, upon 
44.19 	receiving a report, shall immediately notify the local police department or the county 
44.20 	sheriff orally and in writing.
44.21 	(c) A person mandated to report physical or sexual child abuse or neglect occurring 
44.22 	within a licensed facility shall report the information to the agency responsible for 
44.23 	licensing the facility under sections 144.50 to 144.58; 241.021; 245A.01 to 245A.16; or 
44.24 	chapter 245B; or a nonlicensed personal care provider organization as defined in sections 
44.25 	256B.04, subdivision 16; and 256B.0625, subdivision 19. A health or corrections agency 
44.26 	receiving a report may request the local welfare agency to provide assistance pursuant 
44.27 	to subdivisions 10, 10a, and 10b. A board or other entity whose licensees perform work 
44.28 	within a school facility, upon receiving a complaint of alleged maltreatment, shall provide 
44.29 	information about the circumstances of the alleged maltreatment to the commissioner of 
44.30 	education. Section 13.03, subdivision 4, applies to data received by the commissioner of 
44.31 	education from a licensing entity.
44.32 	(d) Any person mandated to report shall receive a summary of the disposition of 
44.33 	any report made by that reporter, including whether the case has been opened for child 
44.34 	protection or other services, or if a referral has been made to a community organization, 
44.35 	unless release would be detrimental to the best interests of the child. Any person who is 
44.36 	not mandated to report shall, upon request to the local welfare agency, receive a concise 
45.1 	summary of the disposition of any report made by that reporter, unless release would be 
45.2 	detrimental to the best interests of the child.
45.3 	(e) For purposes of this subdivision section, "immediately" means as soon as 
45.4 	possible but in no event longer than 24 hours.

45.5 	Sec. 26. Minnesota Statutes 2006, section 626.556, is amended by adding a subdivision 
45.6 	to read:
45.7 		Subd. 3e.Agency responsibility for assessing or investigating reports of sexual 
45.8 	abuse. The local welfare agency is the agency responsible for investigating allegations 
45.9 	of sexual abuse if the alleged offender is the parent, guardian, sibling, or an individual 
45.10 	functioning within the family unit as a person responsible for the child's care, or a person 
45.11 	with a significant relationship to the child if that person resides in the child's household.

45.12 	Sec. 27. Minnesota Statutes 2006, section 626.556, is amended by adding a subdivision 
45.13 	to read:
45.14 		Subd. 3f.Law enforcement agency responsibility for investigating 
45.15 	maltreatment. The local law enforcement agency has responsibility for investigating any 
45.16 	report of child maltreatment if a violation of a criminal statute is alleged. Law enforcement 
45.17 	and the responsible agency must coordinate their investigations or assessments as required 
45.18 	under subdivision 10.

45.19 	Sec. 28. Minnesota Statutes 2006, section 626.556, subdivision 10, is amended to read:
45.20 		Subd. 10.Duties of local welfare agency and local law enforcement agency upon 
45.21 	receipt of a report. (a) Upon receipt of a report, the local welfare agency shall determine 
45.22 	whether to conduct a family assessment or an investigation as appropriate to prevent or 
45.23 	provide a remedy for child maltreatment. The local welfare agency:
45.24 	(1) shall conduct an investigation on reports involving substantial child 
45.25 	endangerment;
45.26 	(2) shall begin an immediate investigation if, at any time when it is using a family 
45.27 	assessment response, it determines that there is reason to believe that substantial child 
45.28 	endangerment or a serious threat to the child's safety exists;
45.29 	(3) may conduct a family assessment for reports that do not allege substantial child 
45.30 	endangerment. In determining that a family assessment is appropriate, the local welfare 
45.31 	agency may consider issues of child safety, parental cooperation, and the need for an 
45.32 	immediate response; and
46.1 	(4) may conduct a family assessment on a report that was initially screened and 
46.2 	assigned for an investigation. In determining that a complete investigation is not required, 
46.3 	the local welfare agency must document the reason for terminating the investigation and 
46.4 	notify the local law enforcement agency if the local law enforcement agency is conducting 
46.5 	a joint investigation.
46.6 	If the report alleges neglect, physical abuse, or sexual abuse by a parent, guardian, 
46.7 	or individual functioning within the family unit as a person responsible for the child's 
46.8 	care, or sexual abuse by a person with a significant relationship to the child when that 
46.9 	person resides in the child's household or by a sibling, the local welfare agency shall 
46.10 	immediately conduct a family assessment or investigation as identified in clauses (1) to 
46.11 	(4). In conducting a family assessment or investigation, the local welfare agency shall 
46.12 	gather information on the existence of substance abuse and domestic violence and offer 
46.13 	services for purposes of preventing future child maltreatment, safeguarding and enhancing 
46.14 	the welfare of the abused or neglected minor, and supporting and preserving family 
46.15 	life whenever possible. If the report alleges a violation of a criminal statute involving 
46.16 	sexual abuse, physical abuse, or neglect or endangerment, under section 609.378, the 
46.17 	local law enforcement agency and local welfare agency shall coordinate the planning and 
46.18 	execution of their respective investigation and assessment efforts to avoid a duplication of 
46.19 	fact-finding efforts and multiple interviews. Each agency shall prepare a separate report of 
46.20 	the results of its investigation. In cases of alleged child maltreatment resulting in death, 
46.21 	the local agency may rely on the fact-finding efforts of a law enforcement investigation 
46.22 	to make a determination of whether or not maltreatment occurred. When necessary the 
46.23 	local welfare agency shall seek authority to remove the child from the custody of a parent, 
46.24 	guardian, or adult with whom the child is living. In performing any of these duties, the 
46.25 	local welfare agency shall maintain appropriate records.
46.26 	If the family assessment or investigation indicates there is a potential for abuse of 
46.27 	alcohol or other drugs by the parent, guardian, or person responsible for the child's care, 
46.28 	the local welfare agency shall conduct a chemical use assessment pursuant to Minnesota 
46.29 	Rules, part 9530.6615. The local welfare agency shall report the determination of the 
46.30 	chemical use assessment, and the recommendations and referrals for alcohol and other 
46.31 	drug treatment services to the state authority on alcohol and drug abuse.
46.32 	(b) When a local agency receives a report or otherwise has information indicating 
46.33 	that a child who is a client, as defined in section 245.91, has been the subject of physical 
46.34 	abuse, sexual abuse, or neglect at an agency, facility, or program as defined in section 
46.35 	245.91, it shall, in addition to its other duties under this section, immediately inform the 
46.36 	ombudsman established under sections 245.91 to 245.97. The commissioner of education 
47.1 	shall inform the ombudsman established under sections 245.91 to 245.97 of reports 
47.2 	regarding a child defined as a client in section 245.91 that maltreatment occurred at a 
47.3 	school as defined in sections 120A.05, subdivisions 9, 11, and 13, and 124D.10.
47.4 	(c) Authority of the local welfare agency responsible for assessing or investigating 
47.5 	the child abuse or neglect report, the agency responsible for assessing or investigating 
47.6 	the report, and of the local law enforcement agency for investigating the alleged abuse or 
47.7 	neglect includes, but is not limited to, authority to interview, without parental consent, 
47.8 	the alleged victim and any other minors who currently reside with or who have resided 
47.9 	with the alleged offender. The interview may take place at school or at any facility or 
47.10 	other place where the alleged victim or other minors might be found or the child may be 
47.11 	transported to, and the interview conducted at, a place appropriate for the interview of a 
47.12 	child designated by the local welfare agency or law enforcement agency. The interview 
47.13 	may take place outside the presence of the alleged offender or parent, legal custodian, 
47.14 	guardian, or school official. For family assessments, it is the preferred practice to request 
47.15 	a parent or guardian's permission to interview the child prior to conducting the child 
47.16 	interview, unless doing so would compromise the safety assessment. Except as provided in 
47.17 	this paragraph, the parent, legal custodian, or guardian shall be notified by the responsible 
47.18 	local welfare or law enforcement agency no later than the conclusion of the investigation 
47.19 	or assessment that this interview has occurred. Notwithstanding rule 49.02 32 of the 
47.20 	Minnesota Rules of Procedure for Juvenile Courts, the juvenile court may, after hearing on 
47.21 	an ex parte motion by the local welfare agency, order that, where reasonable cause exists, 
47.22 	the agency withhold notification of this interview from the parent, legal custodian, or 
47.23 	guardian. If the interview took place or is to take place on school property, the order shall 
47.24 	specify that school officials may not disclose to the parent, legal custodian, or guardian the 
47.25 	contents of the notification of intent to interview the child on school property, as provided 
47.26 	under this paragraph, and any other related information regarding the interview that may 
47.27 	be a part of the child's school record. A copy of the order shall be sent by the local welfare 
47.28 	or law enforcement agency to the appropriate school official.
47.29 	(d) When the local welfare, local law enforcement agency, or the agency responsible 
47.30 	for assessing or investigating a report of maltreatment determines that an interview should 
47.31 	take place on school property, written notification of intent to interview the child on school 
47.32 	property must be received by school officials prior to the interview. The notification 
47.33 	shall include the name of the child to be interviewed, the purpose of the interview, and 
47.34 	a reference to the statutory authority to conduct an interview on school property. For 
47.35 	interviews conducted by the local welfare agency, the notification shall be signed by the 
47.36 	chair of the local social services agency or the chair's designee. The notification shall be 
48.1 	private data on individuals subject to the provisions of this paragraph. School officials 
48.2 	may not disclose to the parent, legal custodian, or guardian the contents of the notification 
48.3 	or any other related information regarding the interview until notified in writing by the 
48.4 	local welfare or law enforcement agency that the investigation or assessment has been 
48.5 	concluded, unless a school employee or agent is alleged to have maltreated the child. 
48.6 	Until that time, the local welfare or law enforcement agency or the agency responsible 
48.7 	for assessing or investigating a report of maltreatment shall be solely responsible for any 
48.8 	disclosures regarding the nature of the assessment or investigation.
48.9 	Except where the alleged offender is believed to be a school official or employee, 
48.10 	the time and place, and manner of the interview on school premises shall be within the 
48.11 	discretion of school officials, but the local welfare or law enforcement agency shall have 
48.12 	the exclusive authority to determine who may attend the interview. The conditions as to 
48.13 	time, place, and manner of the interview set by the school officials shall be reasonable and 
48.14 	the interview shall be conducted not more than 24 hours after the receipt of the notification 
48.15 	unless another time is considered necessary by agreement between the school officials and 
48.16 	the local welfare or law enforcement agency. Where the school fails to comply with the 
48.17 	provisions of this paragraph, the juvenile court may order the school to comply. Every 
48.18 	effort must be made to reduce the disruption of the educational program of the child, other 
48.19 	students, or school staff when an interview is conducted on school premises.
48.20 	(e) Where the alleged offender or a person responsible for the care of the alleged 
48.21 	victim or other minor prevents access to the victim or other minor by the local welfare 
48.22 	agency, the juvenile court may order the parents, legal custodian, or guardian to produce 
48.23 	the alleged victim or other minor for questioning by the local welfare agency or the local 
48.24 	law enforcement agency outside the presence of the alleged offender or any person 
48.25 	responsible for the child's care at reasonable places and times as specified by court order.
48.26 	(f) Before making an order under paragraph (e), the court shall issue an order to 
48.27 	show cause, either upon its own motion or upon a verified petition, specifying the basis for 
48.28 	the requested interviews and fixing the time and place of the hearing. The order to show 
48.29 	cause shall be served personally and shall be heard in the same manner as provided in 
48.30 	other cases in the juvenile court. The court shall consider the need for appointment of a 
48.31 	guardian ad litem to protect the best interests of the child. If appointed, the guardian ad 
48.32 	litem shall be present at the hearing on the order to show cause.
48.33 	(g) The commissioner of human services, the ombudsman for mental health and 
48.34 	developmental disabilities, the local welfare agencies responsible for investigating reports, 
48.35 	the commissioner of education, and the local law enforcement agencies have the right to 
48.36 	enter facilities as defined in subdivision 2 and to inspect and copy the facility's records, 
49.1 	including medical records, as part of the investigation. Notwithstanding the provisions of 
49.2 	chapter 13, they also have the right to inform the facility under investigation that they are 
49.3 	conducting an investigation, to disclose to the facility the names of the individuals under 
49.4 	investigation for abusing or neglecting a child, and to provide the facility with a copy of 
49.5 	the report and the investigative findings.
49.6 	(h) The local welfare agency responsible for conducting a family assessment or 
49.7 	investigation shall collect available and relevant information to determine child safety, 
49.8 	risk of subsequent child maltreatment, and family strengths and needs and share not public 
49.9 	information with an Indian's tribal social services agency without violating any law of the 
49.10 	state that may otherwise impose duties of confidentiality on the local welfare agency in 
49.11 	order to implement the tribal state agreement. The local welfare agency or the agency 
49.12 	responsible for investigating the report shall collect available and relevant information 
49.13 	to ascertain whether maltreatment occurred and whether protective services are needed. 
49.14 	Information collected includes, when relevant, information with regard to the person 
49.15 	reporting the alleged maltreatment, including the nature of the reporter's relationship to the 
49.16 	child and to the alleged offender, and the basis of the reporter's knowledge for the report; 
49.17 	the child allegedly being maltreated; the alleged offender; the child's caretaker; and other 
49.18 	collateral sources having relevant information related to the alleged maltreatment. The 
49.19 	local welfare agency or the agency responsible for assessing or investigating the report 
49.20 	may make a determination of no maltreatment early in an assessment, and close the case 
49.21 	and retain immunity, if the collected information shows no basis for a full assessment or 
49.22 	investigation.
49.23 	Information relevant to the assessment or investigation must be asked for, and 
49.24 	may include:
49.25 	(1) the child's sex and age, prior reports of maltreatment, information relating 
49.26 	to developmental functioning, credibility of the child's statement, and whether the 
49.27 	information provided under this clause is consistent with other information collected 
49.28 	during the course of the assessment or investigation;
49.29 	(2) the alleged offender's age, a record check for prior reports of maltreatment, and 
49.30 	criminal charges and convictions. The local welfare agency or the agency responsible for 
49.31 	assessing or investigating the report must provide the alleged offender with an opportunity 
49.32 	to make a statement. The alleged offender may submit supporting documentation relevant 
49.33 	to the assessment or investigation;
49.34 	(3) collateral source information regarding the alleged maltreatment and care of the 
49.35 	child. Collateral information includes, when relevant: (i) a medical examination of the 
49.36 	child; (ii) prior medical records relating to the alleged maltreatment or the care of the 
50.1 	child maintained by any facility, clinic, or health care professional and an interview with 
50.2 	the treating professionals; and (iii) interviews with the child's caretakers, including the 
50.3 	child's parent, guardian, foster parent, child care provider, teachers, counselors, family 
50.4 	members, relatives, and other persons who may have knowledge regarding the alleged 
50.5 	maltreatment and the care of the child; and
50.6 	(4) information on the existence of domestic abuse and violence in the home of 
50.7 	the child, and substance abuse.
50.8 	Nothing in this paragraph precludes the local welfare agency, the local law 
50.9 	enforcement agency, or the agency responsible for assessing or investigating the report 
50.10 	from collecting other relevant information necessary to conduct the assessment or 
50.11 	investigation. Notwithstanding section 13.384 or 144.335, the local welfare agency has 
50.12 	access to medical data and records for purposes of clause (3). Notwithstanding the data's 
50.13 	classification in the possession of any other agency, data acquired by the local welfare 
50.14 	agency or the agency responsible for assessing or investigating the report during the course 
50.15 	of the assessment or investigation are private data on individuals and must be maintained 
50.16 	in accordance with subdivision 11. Data of the commissioner of education collected 
50.17 	or maintained during and for the purpose of an investigation of alleged maltreatment 
50.18 	in a school are governed by this section, notwithstanding the data's classification as 
50.19 	educational, licensing, or personnel data under chapter 13.
50.20 	In conducting an assessment or investigation involving a school facility as defined 
50.21 	in subdivision 2, paragraph (i), the commissioner of education shall collect investigative 
50.22 	reports and data that are relevant to a report of maltreatment and are from local law 
50.23 	enforcement and the school facility.
50.24 	(i) Upon receipt of a report, the local welfare agency shall conduct a face-to-face 
50.25 	contact with the child reported to be maltreated and with the child's primary caregiver 
50.26 	sufficient to complete a safety assessment and ensure the immediate safety of the child. 
50.27 	The face-to-face contact with the child and primary caregiver shall occur immediately 
50.28 	if substantial child endangerment is alleged and within five calendar days for all other 
50.29 	reports. If the alleged offender was not already interviewed as the primary caregiver, the 
50.30 	local welfare agency shall also conduct a face-to-face interview with the alleged offender 
50.31 	in the early stages of the assessment or investigation. At the initial contact, the local child 
50.32 	welfare agency or the agency responsible for assessing or investigating the report must 
50.33 	inform the alleged offender of the complaints or allegations made against the individual in 
50.34 	a manner consistent with laws protecting the rights of the person who made the report. 
50.35 	The interview with the alleged offender may be postponed if it would jeopardize an active 
50.36 	law enforcement investigation.
51.1 	(j) When conducting an investigation, the local welfare agency shall use a question 
51.2 	and answer interviewing format with questioning as nondirective as possible to elicit 
51.3 	spontaneous responses. For investigations only, the following interviewing methods and 
51.4 	procedures must be used whenever possible when collecting information:
51.5 	(1) audio recordings of all interviews with witnesses and collateral sources; and
51.6 	(2) in cases of alleged sexual abuse, audio-video recordings of each interview with 
51.7 	the alleged victim and child witnesses.
51.8 	(k) In conducting an assessment or investigation involving a school facility as 
51.9 	defined in subdivision 2, paragraph (i), the commissioner of education shall collect 
51.10 	available and relevant information and use the procedures in paragraphs (i), (k), and 
51.11 	subdivision 3d, except that the requirement for face-to-face observation of the child 
51.12 	and face-to-face interview of the alleged offender is to occur in the initial stages of the 
51.13 	assessment or investigation provided that the commissioner may also base the assessment 
51.14 	or investigation on investigative reports and data received from the school facility and 
51.15 	local law enforcement, to the extent those investigations satisfy the requirements of 
51.16 	paragraphs (i) and (k), and subdivision 3d.

51.17 	Sec. 29. Minnesota Statutes 2006, section 626.556, subdivision 10a, is amended to 
51.18 	read:
51.19 		Subd. 10a.Abuse outside family unit Law enforcement agency responsibility 
51.20 	for investigation; welfare agency reliance on law enforcement fact-finding; welfare 
51.21 	agency offer of services. (a) If the report alleges neglect, physical abuse, or sexual abuse 
51.22 	by a person who is not a parent, guardian, sibling, person responsible for the child's care 
51.23 	functioning outside within the family unit, or a person who lives in the child's household 
51.24 	and who has a significant relationship to the child, in a setting other than a facility as 
51.25 	defined in subdivision 2, the local welfare agency shall immediately notify the appropriate 
51.26 	law enforcement agency, which shall conduct an investigation of the alleged abuse or 
51.27 	neglect if a violation of a criminal statute is alleged. 
51.28 	(b) The local agency may rely on the fact-finding efforts of the law enforcement 
51.29 	investigation conducted under this subdivision to make a determination whether or not 
51.30 	threatened harm or other maltreatment has occurred under subdivision 2 if an alleged 
51.31 	offender has minor children or lives with minors.
51.32 	(c) The local welfare agency shall offer appropriate social services for the purpose of 
51.33 	safeguarding and enhancing the welfare of the abused or neglected minor.

52.1 	Sec. 30. Minnesota Statutes 2006, section 626.556, subdivision 10c, is amended to 
52.2 	read:
52.3 		Subd. 10c.Duties of local social service agency upon receipt of a report of 
52.4 	medical neglect. If the report alleges medical neglect as defined in section 260C.007, 
52.5 	subdivision 4 6, clause (5), the local welfare agency shall, in addition to its other duties 
52.6 	under this section, immediately consult with designated hospital staff and with the parents 
52.7 	of the infant to verify that appropriate nutrition, hydration, and medication are being 
52.8 	provided; and shall immediately secure an independent medical review of the infant's 
52.9 	medical charts and records and, if necessary, seek a court order for an independent medical 
52.10 	examination of the infant. If the review or examination leads to a conclusion of medical 
52.11 	neglect, the agency shall intervene on behalf of the infant by initiating legal proceedings 
52.12 	under section 260C.141 and by filing an expedited motion to prevent the withholding 
52.13 	of medically indicated treatment. 

52.14 	Sec. 31. Minnesota Statutes 2006, section 626.556, subdivision 10f, is amended to read:
52.15 		Subd. 10f.Notice of determinations. Within ten working days of the conclusion 
52.16 	of a family assessment, the local welfare agency shall notify the parent or guardian of 
52.17 	the child of the need for services to address child safety concerns or significant risk of 
52.18 	subsequent child maltreatment. The local welfare agency and the family may also jointly 
52.19 	agree that family support and family preservation services are needed. Within ten working 
52.20 	days of the conclusion of an investigation, the local welfare agency or agency responsible 
52.21 	for assessing or investigating the report shall notify the parent or guardian of the child, the 
52.22 	person determined to be maltreating the child, and if applicable, the director of the facility, 
52.23 	of the determination and a summary of the specific reasons for the determination. The 
52.24 	notice must also include a certification that the information collection procedures under 
52.25 	subdivision 10, paragraphs (h), (i), and (j), were followed and a notice of the right of a 
52.26 	data subject to obtain access to other private data on the subject collected, created, or 
52.27 	maintained under this section. In addition, the notice shall include the length of time that 
52.28 	the records will be kept under subdivision 11c. The investigating agency shall notify the 
52.29 	parent or guardian of the child who is the subject of the report, and any person or facility 
52.30 	determined to have maltreated a child, of their appeal or review rights under this section 
52.31 	or section 256.022. The notice must also state that a finding of maltreatment may result 
52.32 	in denial of a license application or background study disqualification under chapter 
52.33 	245C related to employment or services that are licensed by the Department of Human 
52.34 	Services under chapter 245A, the Department of Health under chapter 144 or 144A, the 
53.1 	Department of Corrections under section 241.021, and from providing services related to 
53.2 	an unlicensed personal care provider organization under chapter 256B.

53.3 	Sec. 32. REVISOR'S INSTRUCTION.
 53.4 	(a) The revisor shall renumber Minnesota Statutes, section 626.556, subdivision 3d, 
53.5 	as Minnesota Statutes, section 626.556, subdivision 3g.
53.6 	(b) The revisor shall change references to Minnesota Statutes, section 260.851, 
53.7 	to section 260.853 and references to Minnesota Statutes, section 260.851, article 5, to 
53.8 	section 260.853, article 4, wherever those references appear in Minnesota Statutes and 
53.9 	Minnesota Rules.

53.10 	ARTICLE 2
53.11 	CHILDREN AND FAMILY

53.12 	Section 1. Minnesota Statutes 2006, section 13.46, subdivision 2, is amended to read:
53.13 		Subd. 2.General. (a) Unless the data is summary data or a statute specifically 
53.14 	provides a different classification, data on individuals collected, maintained, used, or 
53.15 	disseminated by the welfare system is private data on individuals, and shall not be 
53.16 	disclosed except:
53.17 	(1) according to section 13.05;
53.18 	(2) according to court order;
53.19 	(3) according to a statute specifically authorizing access to the private data;
53.20 	(4) to an agent of the welfare system, including a law enforcement person, attorney, 
53.21 	or investigator acting for it in the investigation or prosecution of a criminal or civil 
53.22 	proceeding relating to the administration of a program;
53.23 	(5) to personnel of the welfare system who require the data to verify an individual's 
53.24 	identity; determine eligibility, amount of assistance, and the need to provide services to 
53.25 	an individual or family across programs; evaluate the effectiveness of programs; and 
53.26 	investigate suspected fraud;
53.27 	(6) to administer federal funds or programs;
53.28 	(7) between personnel of the welfare system working in the same program;
53.29 	(8) to the Department of Revenue to administer and evaluate tax refund or tax credit 
53.30 	programs and to identify individuals who may benefit from these programs. The following 
53.31 	information may be disclosed under this paragraph: an individual's and their dependent's 
53.32 	names, dates of birth, Social Security numbers, income, addresses, and other data as 
53.33 	required, upon request by the Department of Revenue. Disclosures by the commissioner 
53.34 	of revenue to the commissioner of human services for the purposes described in this clause 
54.1 	are governed by section 270B.14, subdivision 1. Tax refund or tax credit programs include, 
54.2 	but are not limited to, the dependent care credit under section 290.067, the Minnesota 
54.3 	working family credit under section 290.0671, the property tax refund and rental credit 
54.4 	under section 290A.04, and the Minnesota education credit under section 290.0674;
54.5 	(9) between the Department of Human Services, the Department of Education, and 
54.6 	the Department of Employment and Economic Development for the purpose of monitoring 
54.7 	the eligibility of the data subject for unemployment benefits, for any employment or 
54.8 	training program administered, supervised, or certified by that agency, for the purpose of 
54.9 	administering any rehabilitation program or child care assistance program, whether alone 
54.10 	or in conjunction with the welfare system, or to monitor and evaluate the Minnesota 
54.11 	family investment program or the child care assistance program by exchanging data on 
54.12 	recipients and former recipients of food support, cash assistance under chapter 256, 256D, 
54.13 	256J, or 256K, child care assistance under chapter 119B, or medical programs under 
54.14 	chapter 256B, 256D, or 256L;
54.15 	(10) to appropriate parties in connection with an emergency if knowledge of 
54.16 	the information is necessary to protect the health or safety of the individual or other 
54.17 	individuals or persons;
54.18 	(11) data maintained by residential programs as defined in section 245A.02 may 
54.19 	be disclosed to the protection and advocacy system established in this state according 
54.20 	to Part C of Public Law 98-527 to protect the legal and human rights of persons with 
54.21 	developmental disabilities or other related conditions who live in residential facilities for 
54.22 	these persons if the protection and advocacy system receives a complaint by or on behalf 
54.23 	of that person and the person does not have a legal guardian or the state or a designee of 
54.24 	the state is the legal guardian of the person;
54.25 	(12) to the county medical examiner or the county coroner for identifying or locating 
54.26 	relatives or friends of a deceased person;
54.27 	(13) data on a child support obligor who makes payments to the public agency 
54.28 	may be disclosed to the Minnesota Office of Higher Education to the extent necessary to 
54.29 	determine eligibility under section 136A.121, subdivision 2, clause (5);
54.30 	(14) participant Social Security numbers and names collected by the telephone 
54.31 	assistance program may be disclosed to the Department of Revenue to conduct an 
54.32 	electronic data match with the property tax refund database to determine eligibility under 
54.33 	section 237.70, subdivision 4a;
54.34 	(15) the current address of a Minnesota family investment program participant 
54.35 	may be disclosed to law enforcement officers who provide the name of the participant 
54.36 	and notify the agency that:
55.1 	(i) the participant:
55.2 	(A) is a fugitive felon fleeing to avoid prosecution, or custody or confinement after 
55.3 	conviction, for a crime or attempt to commit a crime that is a felony under the laws of the 
55.4 	jurisdiction from which the individual is fleeing; or
55.5 	(B) is violating a condition of probation or parole imposed under state or federal law;
55.6 	(ii) the location or apprehension of the felon is within the law enforcement officer's 
55.7 	official duties; and
55.8 	(iii) the request is made in writing and in the proper exercise of those duties;
55.9 	(16) the current address of a recipient of general assistance or general assistance 
55.10 	medical care may be disclosed to probation officers and corrections agents who are 
55.11 	supervising the recipient and to law enforcement officers who are investigating the 
55.12 	recipient in connection with a felony level offense;
55.13 	(17) information obtained from food support applicant or recipient households may 
55.14 	be disclosed to local, state, or federal law enforcement officials, upon their written request, 
55.15 	for the purpose of investigating an alleged violation of the Food Stamp Act, according 
55.16 	to Code of Federal Regulations, title 7, section 272.1(c);
55.17 	(18) the address, Social Security number, and, if available, photograph of any 
55.18 	member of a household receiving food support shall be made available, on request, to a 
55.19 	local, state, or federal law enforcement officer if the officer furnishes the agency with the 
55.20 	name of the member and notifies the agency that:
55.21 	(i) the member:
55.22 	(A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a 
55.23 	crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;
55.24 	(B) is violating a condition of probation or parole imposed under state or federal 
55.25 	law; or
55.26 	(C) has information that is necessary for the officer to conduct an official duty related 
55.27 	to conduct described in subitem (A) or (B);
55.28 	(ii) locating or apprehending the member is within the officer's official duties; and
55.29 	(iii) the request is made in writing and in the proper exercise of the officer's official 
55.30 	duty;
55.31 	(19) the current address of a recipient of Minnesota family investment program, 
55.32 	general assistance, general assistance medical care, or food support may be disclosed to 
55.33 	law enforcement officers who, in writing, provide the name of the recipient and notify the 
55.34 	agency that the recipient is a person required to register under section 243.166, but is not 
55.35 	residing at the address at which the recipient is registered under section 243.166;
56.1 	(20) certain information regarding child support obligors who are in arrears may be 
56.2 	made public according to section 518A.74;
56.3 	(21) data on child support payments made by a child support obligor and data on 
56.4 	the distribution of those payments excluding identifying information on obligees may be 
56.5 	disclosed to all obligees to whom the obligor owes support, and data on the enforcement 
56.6 	actions undertaken by the public authority, the status of those actions, and data on the 
56.7 	income of the obligor or obligee may be disclosed to the other party;
56.8 	(22) data in the work reporting system may be disclosed under section 256.998, 
56.9 	subdivision 7;
56.10 	(23) to the Department of Education for the purpose of matching Department of 
56.11 	Education student data with public assistance data to determine students eligible for free 
56.12 	and reduced price meals, meal supplements, and free milk according to United States 
56.13 	Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to allocate federal and 
56.14 	state funds that are distributed based on income of the student's family; and to verify 
56.15 	receipt of energy assistance for the telephone assistance plan;
56.16 	(24) the current address and telephone number of program recipients and emergency 
56.17 	contacts may be released to the commissioner of health or a local board of health as 
56.18 	defined in section 145A.02, subdivision 2, when the commissioner or local board of health 
56.19 	has reason to believe that a program recipient is a disease case, carrier, suspect case, or at 
56.20 	risk of illness, and the data are necessary to locate the person;
56.21 	(25) to other state agencies, statewide systems, and political subdivisions of this 
56.22 	state, including the attorney general, and agencies of other states, interstate information 
56.23 	networks, federal agencies, and other entities as required by federal regulation or law for 
56.24 	the administration of the child support enforcement program;
56.25 	(26) to personnel of public assistance programs as defined in section 256.741, for 
56.26 	access to the child support system database for the purpose of administration, including 
56.27 	monitoring and evaluation of those public assistance programs;
56.28 	(27) to monitor and evaluate the Minnesota family investment program by 
56.29 	exchanging data between the Departments of Human Services and Education, on 
56.30 	recipients and former recipients of food support, cash assistance under chapter 256, 256D, 
56.31 	256J, or 256K, child care assistance under chapter 119B, or medical programs under 
56.32 	chapter 256B, 256D, or 256L;
56.33 	(28) to evaluate child support program performance and to identify and prevent 
56.34 	fraud in the child support program by exchanging data between the Department of Human 
56.35 	Services, Department of Revenue under section 270B.14, subdivision 1, paragraphs (a) 
56.36 	and (b), without regard to the limitation of use in paragraph (c), Department of Health, 
57.1 	Department of Employment and Economic Development, and other state agencies as is 
57.2 	reasonably necessary to perform these functions; or
57.3 	(29) counties operating child care assistance programs under chapter 119B may 
57.4 	disseminate data on program participants, applicants, and providers to the commissioner 
57.5 	of education.
57.6 	(b) Information on persons who have been treated for drug or alcohol abuse may 
57.7 	only be disclosed according to the requirements of Code of Federal Regulations, title 
57.8 	42, sections 2.1 to 2.67.
57.9 	(c) Data provided to law enforcement agencies under paragraph (a), clause (15), 
57.10 	(16), (17), or (18), or paragraph (b), are investigative data and are confidential or protected 
57.11 	nonpublic while the investigation is active. The data are private after the investigation 
57.12 	becomes inactive under section 13.82, subdivision 5, paragraph (a) or (b).
57.13 	(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but is 
57.14 	not subject to the access provisions of subdivision 10, paragraph (b).
57.15 	For the purposes of this subdivision, a request will be deemed to be made in writing 
57.16 	if made through a computer interface system.

57.17 	Sec. 2. Minnesota Statutes 2006, section 16D.13, subdivision 3, is amended to read:
57.18 		Subd. 3.Exclusion. A state agency may not charge interest under this section on 
57.19 	overpayments of assistance benefits under the programs formerly codified in sections 
57.20 	256.031 to 256.0361, 256.72 to 256.87, and under chapters 119B, 256D, and 256I, or the 
57.21 	federal food stamp program. Notwithstanding this prohibition, any debts that have been 
57.22 	reduced to judgment under these programs are subject to the interest charges provided 
57.23 	under section 549.09.

57.24 	Sec. 3. Minnesota Statutes 2006, section 119B.011, is amended by adding a subdivision 
57.25 	to read:
57.26 		Subd. 13a.Family stabilization services. "Family stabilization services" means the 
57.27 	services under section 256J.575. 

57.28 	Sec. 4. Minnesota Statutes 2006, section 119B.035, subdivision 1, is amended to read:
57.29 		Subdivision 1.Establishment. A family in which a parent provides care for the 
57.30 	family's infant child may receive a subsidy in lieu of assistance if the family is eligible for 
57.31 	or is receiving assistance under the basic sliding fee program. An eligible family must 
57.32 	meet the eligibility factors under section 119B.09, except as provided in subdivision 4, 
57.33 	and the requirements of this section. Subject to federal match and maintenance of effort 
58.1 	requirements for the child care and development fund, and up to available appropriations, 
58.2 	the commissioner shall establish a pool of up to three percent of the annual state 
58.3 	appropriation for the basic sliding fee program to provide assistance under the at-home 
58.4 	infant child care program and for administrative costs associated with the program. At 
58.5 	the end of a fiscal year, the commissioner may carry forward any unspent funds under 
58.6 	this section to the next fiscal year within the same biennium for assistance under the 
58.7 	basic sliding fee program.

58.8 	Sec. 5. Minnesota Statutes 2006, section 119B.05, subdivision 1, is amended to read:
58.9 		Subdivision 1.Eligible participants. Families eligible for child care assistance 
58.10 	under the MFIP child care program are:
58.11 	(1) MFIP participants who are employed or in job search and meet the requirements 
58.12 	of section 119B.10; 
58.13 	(2) persons who are members of transition year families under section 119B.011, 
58.14 	subdivision 20, and meet the requirements of section 119B.10; 
58.15 	(3) families who are participating in employment orientation or job search, or 
58.16 	other employment or training activities that are included in an approved employability 
58.17 	development plan under section 256J.95; 
58.18 	(4) MFIP families who are participating in work job search, job support, 
58.19 	employment, or training activities as required in their employment plan, or in appeals, 
58.20 	hearings, assessments, or orientations according to chapter 256J;
58.21 	(5) MFIP families who are participating in social services activities under chapter 
58.22 	256J as required in their employment plan approved according to chapter 256J;
58.23 	(6) families who are participating in services or activities that are included in an 
58.24 	approved family stabilization plan under section 256J.575;
58.25 	(7) families who are participating in programs as required in tribal contracts under 
58.26 	section 119B.02, subdivision 2, or 256.01, subdivision 2; and
58.27 	(7) (8)  families who are participating in the transition year extension under section 
58.28 	119B.011, subdivision 20a. 

58.29 	Sec. 6. Minnesota Statutes 2006, section 119B.09, subdivision 7, is amended to read:
58.30 		Subd. 7.Date of eligibility for assistance. (a) The date of eligibility for child 
58.31 	care assistance under this chapter is the later of the date the application was signed; the 
58.32 	beginning date of employment, education, or training; the date the infant is born for 
58.33 	applicants to the at-home infant care program; or the date a determination has been made 
59.1 	that the applicant is a participant in employment and training services under Minnesota 
59.2 	Rules, part 3400.0080, subpart 2a, or chapter 256J.
59.3 	(b) Payment ceases for a family under the at-home infant child care program when a 
59.4 	family has used a total of 12 months of assistance as specified under section 119B.035. 
59.5 	Payment of child care assistance for employed persons on MFIP is effective the date of 
59.6 	employment or the date of MFIP eligibility, whichever is later. Payment of child care 
59.7 	assistance for MFIP or DWP participants in employment and training services is effective 
59.8 	the date of commencement of the services or the date of MFIP or DWP eligibility, 
59.9 	whichever is later. Payment of child care assistance for transition year child care must be 
59.10 	made retroactive to the date of eligibility for transition year child care. 

59.11 	Sec. 7. Minnesota Statutes 2006, section 119B.09, is amended by adding a subdivision 
59.12 	to read:
59.13 		Subd. 11.Payment of other child care expenses. Payment by a source other 
59.14 	than the family, of part or all of a family's child care expenses not payable under this 
59.15 	chapter, does not affect the family's eligibility for child care assistance, and the amount 
59.16 	paid is excluded from the family's income, if the funds are paid directly to the family's 
59.17 	child care provider on behalf of the family. Child care providers who accept third-party 
59.18 	payments must maintain family-specific documentation of payment source, amount, type 
59.19 	of expenses, and time period covered by the payment.

59.20 	Sec. 8. Minnesota Statutes 2006, section 119B.09, is amended by adding a subdivision 
59.21 	to read:
59.22 		Subd. 12.Sliding fee. Child care services to families must be made available on a 
59.23 	sliding fee basis. The commissioner shall convert eligibility requirements in section 
59.24 	119B.09 and parent fee schedules in 119B.12 to state median income, based on a family 
59.25 	size of three, adjusted for family size, by July 1, 2008. The commissioner shall report 
59.26 	to the 2008 legislature with the necessary statutory changes to codify this conversion 
59.27 	to state median income. 

59.28 	Sec. 9. Minnesota Statutes 2006, section 119B.12, is amended to read:
59.29 	119B.12 SLIDING FEE SCALE.
59.30 		Subdivision 1.Fee schedule. In setting the sliding fee schedule, the commissioner 
59.31 	shall exclude from the amount of income used to determine eligibility an amount for 
59.32 	federal and state income and Social Security taxes attributable to that income level 
59.33 	according to federal and state standardized tax tables. The commissioner shall base the 
60.1 	parent fee on the ability of the family to pay for child care. The fee schedule must be 
60.2 	designed to use any available tax credits.
60.3 	PARENT FEE SCHEDULE.   The parent fee schedule is as follows: 

60.4
60.5	Income Range (as a percent of the federal 
poverty guidelines)
	Co-payment (as a percentage of adjusted 
gross income)
	
60.6	 0-74.99%
	$0/month
	
60.7	75.00-99.99%
	$5/month
	
60.8	100.00-104.99%
	2.61%
	
60.9	105.00-109.99%
	2.61%
	
60.10	110.00-114.99%
	2.61%
	
60.11	115.00-119.99%
	2.61%
	
60.12	120.00-124.99%
	2.91%
	
60.13	125.00-129.99%
	2.91%
	
60.14	130.00-134.99%
	2.91%
	
60.15	135.00-139.99%
	2.91%
	
60.16	140.00-144.99%
	3.21%
	
60.17	145.00-149.99%
	3.21%
	
60.18	150.00-154.99%
	3.21%
	
60.19	155.00-159.99%
	3.84%
	
60.20	160.00-164.99%
	3.84%
	
60.21	165.00-169.99%
	4.46%
	
60.22	170.00-174.99%
	4.76%
	
60.23	175.00-179.99%
	5.05%
	
60.24	180.00-184.99%
	5.65%
	
60.25	185.00-189.99%
	5.95%
	
60.26	190.00-194.99%
	6.24%
	
60.27	195.00-199.99%
	6.84%
	
60.28	200.00-204.99%
	7.58%
	
60.29	205.00-209.99%
	8.33%
	
60.30	210.00-214.99%
	9.20%
	
60.31	215.00-219.99%
	10.07%
	
60.32	220.00-224.99%
	10.94%
	
60.33	225.00-229.99%
	11.55%
	
60.34	230.00-234.99%
	12.16%
	
60.35	235.00-239.99%
	12.77%
	
60.36	240.00-244.99%
	13.38%
	
60.37	245.00-249.99%
	14.00%
	
60.38	250%
	ineligible
	
60.39 	A family's monthly co-payment fee is the fixed percentage established for the 
60.40 	income range multiplied by the highest possible income within that income range.
60.41 		Subd. 2.Parent fee. A family must be assessed a parent fee for each service period. 
60.42 	A family's parent fee must be a fixed percentage of its annual gross income. Parent fees 
61.1 	must apply to families eligible for child care assistance under sections 119B.03 and 
61.2 	119B.05. Income must be as defined in section 119B.011, subdivision 15. The fixed 
61.3 	percent is based on the relationship of the family's annual gross income to 100 percent 
61.4 	of the annual federal poverty guidelines. Parent fees must begin at 75 percent of the 
61.5 	poverty level. The minimum parent fees for families between 75 percent and 100 percent 
61.6 	of poverty level must be $10 $5 per month. Parent fees must provide for graduated 
61.7 	movement to full payment. Payment of part or all of a family's parent fee directly to the 
61.8 	family's child care provider on behalf of the family by a source other than the family shall 
61.9 	not affect the family's eligibility for child care assistance, and the amount paid shall be 
61.10 	excluded from the family's income. Child care providers who accept third-party payments 
61.11 	must maintain family specific documentation of payment source, amount, and time period 
61.12 	covered by the payment.

61.13 	EFFECTIVE DATE. (a) This section is effective July 1, 2007. 
61.14 	(b) Effective July 1, 2008, the parent fee scale for families with incomes greater than 
61.15 	or equal to 100 percent of FPG shall be converted to state median income for a family size 
61.16 	of three, adjusted for family size, as directed in section 119B.09, subdivision 12. 

61.17 	Sec. 10. Minnesota Statutes 2006, section 119B.125, subdivision 2, is amended to read:
61.18 		Subd. 2.Persons who cannot be authorized. (a) A person who meets any of the 
61.19 	conditions under paragraphs (b) to (n) must not be authorized as a legal nonlicensed 
61.20 	family child care provider. To determine whether any of the listed conditions exist, 
61.21 	the county must request information about the provider from the Bureau of Criminal 
61.22 	Apprehension, the juvenile courts, and social service agencies. When one of the listed 
61.23 	entities does not maintain information on a statewide basis, the county must contact the 
61.24 	entity in the county where the provider resides and any other county in which the provider 
61.25 	previously resided in the past year. For purposes of this subdivision, a finding that a 
61.26 	delinquency petition is proven in juvenile court must be considered a conviction in state 
61.27 	district court. If a county has determined that a provider is able to be authorized in that 
61.28 	county, and a family in another county later selects that provider, the provider is able to 
61.29 	be authorized in the second county without undergoing a new background investigation 
61.30 	unless one of the following conditions exists:
61.31 	(1) two years have passed since the first authorization;
61.32 	(2) another person age 13 or older has joined the provider's household since the 
61.33 	last authorization;
61.34 	(3) a current household member has turned 13 since the last authorization; or
62.1 	(4) there is reason to believe that a household member has a factor that prevents 
62.2 	authorization.
62.3 	(b) The person has been convicted of one of the following offenses or has admitted to 
62.4 	committing or a preponderance of the evidence indicates that the person has committed an 
62.5 	act that meets the definition of one of the following offenses: sections 609.185 to 609.195, 
62.6 	murder in the first, second, or third degree; 609.2661 to 609.2663, murder of an unborn 
62.7 	child in the first, second, or third degree; 609.322, solicitation, inducement, promotion 
62.8 	of prostitution, or receiving profit from prostitution; 609.342 to 609.345, criminal sexual 
62.9 	conduct in the first, second, third, or fourth degree; 609.352, solicitation of children to 
62.10 	engage in sexual conduct; 609.365, incest; 609.377, felony malicious punishment of a 
62.11 	child; 617.246, use of minors in sexual performance; 617.247, possession of pictorial 
62.12 	representation of a minor; 609.2242 to 609.2243, felony domestic assault; a felony offense 
62.13 	of spousal abuse; a felony offense of child abuse or neglect; a felony offense of a crime 
62.14 	against children; or an attempt or conspiracy to commit any of these offenses as defined in 
62.15 	Minnesota Statutes; or an offense in any other state or country where the elements are 
62.16 	substantially similar to any of the offenses listed in this paragraph.
62.17 	(c) Less than 15 years have passed since the discharge of the sentence imposed for 
62.18 	the offense and the person has received a felony conviction for one of the following 
62.19 	offenses, or the person has admitted to committing or a preponderance of the evidence 
62.20 	indicates that the person has committed an act that meets the definition of a felony 
62.21 	conviction for one of the following offenses: sections 609.20 to 609.205, manslaughter in 
62.22 	the first or second degree; 609.21, criminal vehicular homicide; 609.215, aiding suicide 
62.23 	or aiding attempted suicide; 609.221 to 609.2231, assault in the first, second, third, or 
62.24 	fourth degree; 609.224, repeat offenses of fifth degree assault; 609.228, great bodily 
62.25 	harm caused by distribution of drugs; 609.2325, criminal abuse of a vulnerable adult; 
62.26 	609.2335, financial exploitation of a vulnerable adult; 609.235, use of drugs to injure or 
62.27 	facilitate a crime; 609.24, simple robbery; 617.241, repeat offenses of obscene materials 
62.28 	and performances; 609.245, aggravated robbery; 609.25, kidnapping; 609.255, false 
62.29 	imprisonment; 609.2664 to 609.2665, manslaughter of an unborn child in the first or 
62.30 	second degree; 609.267 to 609.2672, assault of an unborn child in the first, second, or third 
62.31 	degree; 609.268, injury or death of an unborn child in the commission of a crime; 609.27, 
62.32 	coercion; 609.275, attempt to coerce; 609.324, subdivision 1, other prohibited acts, minor 
62.33 	engaged in prostitution; 609.3451, repeat offenses of criminal sexual conduct in the fifth 
62.34 	degree; 609.378, neglect or endangerment of a child; 609.52, theft; 609.521, possession of 
62.35 	shoplifting gear; 609.561 to 609.563, arson in the first, second, or third degree; 609.582, 
62.36 	burglary in the first, second, third, or fourth degree; 609.625, aggravated forgery; 609.63, 
63.1 	forgery; 609.631, check forgery, offering a forged check; 609.635, obtaining signature 
63.2 	by false pretenses; 609.66, dangerous weapon; 609.665, setting a spring gun; 609.67, 
63.3 	unlawfully owning, possessing, or operating a machine gun; 609.687, adulteration; 609.71, 
63.4 	riot; 609.713, terrorist threats; 609.749, harassment, stalking; 260C.301, termination of 
63.5 	parental rights; 152.021 to 152.022 and 152.0262, controlled substance crime in the first 
63.6 	or second degree; 152.023, subdivision 1, clause (3) or (4), or 152.023, subdivision 2, 
63.7 	clause (4), controlled substance crime in third degree; 152.024, subdivision 1, clause 
63.8 	(2), (3), or (4), controlled substance crime in fourth degree; 617.23, repeat offenses of 
63.9 	indecent exposure; an attempt or conspiracy to commit any of these offenses as defined in 
63.10 	Minnesota Statutes; or an offense in any other state or country where the elements are 
63.11 	substantially similar to any of the offenses listed in this paragraph.
63.12 	(d) Less than ten years have passed since the discharge of the sentence imposed for 
63.13 	the offense and the person has received a gross misdemeanor conviction for one of the 
63.14 	following offenses or the person has admitted to committing or a preponderance of the 
63.15 	evidence indicates that the person has committed an act that meets the definition of a gross 
63.16 	misdemeanor conviction for one of the following offenses: sections 609.224, fifth degree 
63.17 	assault; 609.2242 to 609.2243, domestic assault; 518B.01, subdivision 14, violation of 
63.18 	an order for protection; 609.3451, fifth degree criminal sexual conduct; 609.746, repeat 
63.19 	offenses of interference with privacy; 617.23, repeat offenses of indecent exposure; 
63.20 	617.241, obscene materials and performances; 617.243, indecent literature, distribution; 
63.21 	617.293, disseminating or displaying harmful material to minors; 609.71, riot; 609.66, 
63.22 	dangerous weapons; 609.749, harassment, stalking; 609.224, subdivision 2, paragraph 
63.23 	(c), fifth degree assault against a vulnerable adult by a caregiver; 609.23, mistreatment 
63.24 	of persons confined; 609.231, mistreatment of residents or patients; 609.2325, criminal 
63.25 	abuse of a vulnerable adult; 609.2335, financial exploitation of a vulnerable adult; 
63.26 	609.233, criminal neglect of a vulnerable adult; 609.234, failure to report maltreatment of 
63.27 	a vulnerable adult; 609.72, subdivision 3, disorderly conduct against a vulnerable adult; 
63.28 	609.265, abduction; 609.378, neglect or endangerment of a child; 609.377, malicious 
63.29 	punishment of a child; 609.324, subdivision 1a, other prohibited acts, minor engaged 
63.30 	in prostitution; 609.33, disorderly house; 609.52, theft; 609.582, burglary in the first, 
63.31 	second, third, or fourth degree; 609.631, check forgery, offering a forged check; 609.275, 
63.32 	attempt to coerce; an attempt or conspiracy to commit any of these offenses as defined in 
63.33 	Minnesota Statutes; or an offense in any other state or country where the elements are 
63.34 	substantially similar to any of the offenses listed in this paragraph.
63.35 	(e) Less than seven years have passed since the discharge of the sentence imposed 
63.36 	for the offense and the person has received a misdemeanor conviction for one of the 
64.1 	following offenses or the person has admitted to committing or a preponderance of 
64.2 	the evidence indicates that the person has committed an act that meets the definition 
64.3 	of a misdemeanor conviction for one of the following offenses: sections 609.224, fifth 
64.4 	degree assault; 609.2242, domestic assault; 518B.01, violation of an order for protection; 
64.5 	609.3232, violation of an order for protection; 609.746, interference with privacy; 609.79, 
64.6 	obscene or harassing telephone calls; 609.795, letter, telegram, or package opening, 
64.7 	harassment; 617.23, indecent exposure; 609.2672, assault of an unborn child, third degree; 
64.8 	617.293, dissemination and display of harmful materials to minors; 609.66, dangerous 
64.9 	weapons; 609.665, spring guns; an attempt or conspiracy to commit any of these offenses 
64.10 	as defined in Minnesota Statutes; or an offense in any other state or country where the 
64.11 	elements are substantially similar to any of the offenses listed in this paragraph.
64.12 	(f) The person has been identified by the child protection agency in the county where 
64.13 	the provider resides or a county where the provider has resided or by the statewide child 
64.14 	protection database as a person found by a preponderance of evidence under section 
64.15 	626.556 to be responsible for physical or sexual abuse of a child within the last seven years.
64.16 	(g) The person has been identified by the adult protection agency in the county 
64.17 	where the provider resides or a county where the provider has resided or by the statewide 
64.18 	adult protection database as the person responsible for abuse or neglect of a vulnerable 
64.19 	adult within the last seven years.
64.20 	(h) The person has refused to give written consent for disclosure of criminal history 
64.21 	records.
64.22 	(i) The person has been denied a family child care license or has received a fine or a 
64.23 	sanction as a licensed child care provider that has not been reversed on appeal.
64.24 	(j) The person has a family child care licensing disqualification that has not been 
64.25 	set aside.
64.26 	(k) The person has admitted or a county has found that there is a preponderance of 
64.27 	evidence that fraudulent information was given to the county for child care assistance 
64.28 	application purposes or was used in submitting child care assistance bills for payment.
64.29 	(l) The person has been convicted of the crime of theft by wrongfully obtaining 
64.30 	public assistance or has been found guilty of wrongfully obtaining public assistance by a 
64.31 	federal court, state court, or an administrative hearing determination or waiver, through a 
64.32 	disqualification consent agreement, as part of an approved diversion plan under section 
64.33 	401.065, or a court-ordered stay with probationary or other conditions.
64.34 	(m) The person has a household member age 13 or older who has access to children 
64.35 	during the hours that care is provided and who meets one of the conditions listed in 
64.36 	paragraphs (b) to (l).
65.1 	(n) The person has a household member ages ten to 12 who has access to children 
65.2 	during the hours that care is provided; information or circumstances exist which provide 
65.3 	the county with articulable suspicion that further pertinent information may exist showing 
65.4 	the household member meets one of the conditions listed in paragraphs (b) to (l); and the 
65.5 	household member actually meets one of the conditions listed in paragraphs (b) to (l).

65.6 	Sec. 11. Minnesota Statutes 2006, section 119B.13, subdivision 1, is amended to read:
65.7 		Subdivision 1.Subsidy restrictions. (a) Beginning July 1, 2006, the maximum rate 
65.8 	paid for child care assistance in any county or multicounty region under the child care 
65.9 	fund shall be the  rate for like-care arrangements in the county effective January 1, 2006, 
65.10 	increased by six percent.
65.11 	(b) Rate changes shall be implemented for services provided in September 2006 
65.12 	unless a participant eligibility redetermination or a new provider agreement is completed 
65.13 	between July 1, 2006, and August 31, 2006.
65.14 	As necessary, appropriate notice of adverse action must be made according to 
65.15 	Minnesota Rules, part 3400.0185, subparts 3 and 4.
65.16 	New cases approved on or after  July 1, 2006, shall have the maximum rates under 
65.17 	paragraph (a), implemented immediately.
65.18 	(c) Not less than once every two years Every year, the commissioner shall survey 
65.19 	rates charged by child care providers in Minnesota to determine the 75th percentile for 
65.20 	like-care arrangements in counties. When the commissioner determines that, using the 
65.21 	commissioner's established protocol, the number of providers responding to the survey is 
65.22 	too small to determine the 75th percentile rate for like-care arrangements in a county or 
65.23 	multicounty region, the commissioner may establish the 75th percentile maximum rate 
65.24 	based on like-care arrangements in a county, region, or category that the commissioner 
65.25 	deems to be similar.
65.26 	(d) A rate which includes a special needs rate paid under subdivision 3 or under 
65.27 	a school readiness service agreement paid under section 61 may be in excess of the 
65.28 	maximum rate allowed under this subdivision.
65.29 	(e) The department shall monitor the effect of this paragraph on provider rates. The 
65.30 	county shall pay the provider's full charges for every child in care up to the maximum 
65.31 	established. The commissioner shall determine the maximum rate for each type of care on 
65.32 	an hourly, full-day, and weekly basis, including special needs and disability care.
65.33 	(f) When the provider charge is greater than the maximum provider rate allowed, 
65.34 	the parent is responsible for payment of the difference in the rates in addition to any 
65.35 	family co-payment fee.

66.1 	Sec. 12. Minnesota Statutes 2006, section 119B.13, subdivision 3a, is amended to read:
66.2 		Subd. 3a.Provider rate differential for accreditation. A family child care 
66.3 	provider or child care center shall be paid a 15 percent differential above the maximum 
66.4 	rate established in subdivision 1, up to the actual provider rate, if the provider or center 
66.5 	holds a current early childhood development credential or is accredited.  For a family 
66.6 	child care provider, early childhood development credential and accreditation includes 
66.7 	an individual who has earned a child development associate degree, a child development 
66.8 	associate credential, a diploma in child development from a Minnesota state technical 
66.9 	college, or a bachelor's or post baccalaureate degree in early childhood education from 
66.10 	an accredited college or university, or who is accredited by the National Association for 
66.11 	Family Child Care or the Competency Based Training and Assessment Program.  For a 
66.12 	child care center, accreditation includes accreditation by the National Association for the 
66.13 	Education of Young Children, the Council on Accreditation, the National Early Childhood 
66.14 	Program Accreditation, the National School-Age Care Association, or the National Head 
66.15 	Start Association Program of Excellence.  For Montessori programs, accreditation includes 
66.16 	the American Montessori Society, Association of Montessori International-USA, or the 
66.17 	National Center for Montessori Education.

66.18 	Sec. 13. Minnesota Statutes 2006, section 119B.13, subdivision 7, is amended to read:
66.19 		Subd. 7.Absent days. (a) Child care providers may not be reimbursed for more 
66.20 	than 25 full-day absent days per child, excluding holidays, in a fiscal year, or for more 
66.21 	than ten consecutive full-day absent days, unless the child has a documented medical 
66.22 	condition that causes more frequent absences. Absences due to a documented medical 
66.23 	condition of a parent or sibling who lives in the same residence as the child receiving 
66.24 	child care assistance do not count against the 25-day absent day limit in a fiscal year. 
66.25 	Documentation of medical conditions must be on the forms and submitted according to 
66.26 	the timelines established by the commissioner. A public health nurse or school nurse 
66.27 	may verify the illness in lieu of a medical practitioner. If a provider sends a child home 
66.28 	early due to a medical reason, including, but not limited to, fever or contagious illness, 
66.29 	the child care center director or lead teacher may verify the illness in lieu of a medical 
66.30 	practitioner. If a child attends for part of the time authorized to be in care in a day, but is 
66.31 	absent for part of the time authorized to be in care in that same day, the absent time will be 
66.32 	reimbursed but the time will not count toward the ten consecutive or 25 cumulative absent 
66.33 	day limits. Children in families where at least one parent is under the age of 21, does not 
66.34 	have a high school or general equivalency diploma, and is a student in a school district 
66.35 	or another similar program that provides or arranges for child care, as well as parenting, 
67.1 	social services, career and employment supports, and academic support to achieve high 
67.2 	school graduation, may be exempt from the absent day limits upon request of the program 
67.3 	and approval of the county. If a child attends part of an authorized day, payment to the 
67.4 	provider must be for the full amount of care authorized for that day. Child care providers 
67.5 	may only be reimbursed for absent days if the provider has a written policy for child 
67.6 	absences and charges all other families in care for similar absences. 
67.7 	(b) Child care providers must be reimbursed for up to ten federal or state holidays 
67.8 	or designated holidays per year when the provider charges all families for these days 
67.9 	and the holiday or designated holiday falls on a day when the child is authorized to be 
67.10 	in attendance. Parents may substitute other cultural or religious holidays for the ten 
67.11 	recognized state and federal holidays. Holidays do not count toward the ten consecutive or 
67.12 	25 cumulative absent day limits. 
67.13 	(c) A family or child care provider may not be assessed an overpayment for an 
67.14 	absent day payment unless (1) there was an error in the amount of care authorized for the 
67.15 	family, (2) all of the allowed full-day absent payments for the child have been paid, or (3) 
67.16 	the family or provider did not timely report a change as required under law.
67.17 	(d) The provider and family must receive notification of the number of absent days 
67.18 	used upon initial provider authorization for a family and when the family has used 15 
67.19 	cumulative absent days. Upon statewide implementation of the Minnesota Electronic 
67.20 	Child Care System, the provider and family authorization for a family and ongoing 
67.21 	notification of the number of absent days used as of the date of the notification.
67.22 	(e) A county may pay for more absent days than the statewide absent day policy 
67.23 	established under this subdivision if current market practice in the county justifies payment 
67.24 	for those additional days. County policies for payment of absent days in excess of the 
67.25 	statewide absent day policy and justification for these county policies must be included in 
67.26 	the county's child care fund plan under section 119B.08, subdivision 3. 

67.27 	Sec. 14. Minnesota Statutes 2006, section 119B.21, subdivision 5, is amended to read:
67.28 		Subd. 5.Child care services grants. (a) A child care resource and referral program 
67.29 	designated under section 119B.19, subdivision 1a, may award child care services grants 
67.30 	for: 
67.31 	(1) creating new licensed child care facilities and expanding existing facilities, 
67.32 	including, but not limited to, supplies, equipment, facility renovation, and remodeling;
67.33 	(2) improving licensed child care facility programs;
67.34 	(3) staff training and development services including, but not limited to, in-service 
67.35 	training, curriculum development, accreditation, certification, consulting, resource centers, 
68.1 	and program and resource materials, supporting effective teacher-child interactions, 
68.2 	child-focused teaching, and content-driven classroom instruction;
68.3 	(4) interim financing;
68.4 	(5) capacity building through the purchase of appropriate technology to create, 
68.5 	enhance, and maintain business management systems;
68.6 	(6) emergency assistance for child care programs;
68.7 	(7) new programs or projects for the creation, expansion, or improvement of 
68.8 	programs that serve ethnic immigrant and refugee communities; and
68.9 	(8) targeted recruitment initiatives to expand and build the capacity of the child 
68.10 	care system and to improve the quality of care provided by legal nonlicensed child care 
68.11 	providers.
68.12 	(b) A child care resource and referral program designated under section 119B.19, 
68.13 	subdivision 1a, may award child care services grants to: 
68.14 	(1) licensed providers;
68.15 	(2) providers in the process of being licensed;
68.16 	(3) corporations or public agencies that develop or provide child care services;
68.17 	(4) school-age care programs; or
68.18 	(5) any combination of clauses (1) to (4).
68.19 	Unlicensed providers are only eligible for grants under paragraph (a), clause (7).
68.20 	(c) A recipient of a child care services grant for facility improvements, interim 
68.21 	financing, or staff training and development must provide a 25 percent local match.

68.22 	Sec. 15. Minnesota Statutes 2006, section 256.01, subdivision 4, is amended to read:
68.23 		Subd. 4.Duties as state agency. (a) The state agency shall:
68.24 	(1) supervise the administration of assistance to dependent children under Laws 
68.25 	1937, chapter 438, by the county agencies in an integrated program with other service for 
68.26 	dependent children maintained under the direction of the state agency;
68.27 	(2) may subpoena witnesses and administer oaths, make rules, and take such action 
68.28 	as may be necessary, or desirable for carrying out the provisions of Laws 1937, chapter 
68.29 	438. All rules made by the state agency shall be binding on the counties and shall be 
68.30 	complied with by the respective county agencies;
68.31 	(3)(2) establish adequate standards for personnel employed by the counties and the 
68.32 	state agency in the administration of Laws 1937, chapter 438, and make the necessary 
68.33 	rules to maintain such standards;
69.1 	(4)(3) prescribe the form of and print and supply to the county agencies blanks 
69.2 	for applications, reports, affidavits, and such other forms as it may deem necessary and 
69.3 	advisable;
69.4 	(5)(4) cooperate with the federal government and its public welfare agencies 
69.5 	in any reasonable manner as may be necessary to qualify for federal aid for temporary 
69.6 	assistance for needy families and in conformity with title I of Public Law 104-193, the 
69.7 	Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and successor 
69.8 	amendments, including the making of such reports and such forms and containing such 
69.9 	information as the Federal Social Security Board may from time to time require, and 
69.10 	comply with such provisions as such board may from time to time find necessary to assure 
69.11 	the correctness and verification of such reports;
69.12 	(6) may cooperate with other state agencies in establishing reciprocal agreements in 
69.13 	instances where a child receiving Minnesota family investment program assistance moves 
69.14 	or contemplates moving into or out of the state, in order that such child may continue to 
69.15 	receive supervised aid from the state moved from until the child shall have resided for 
69.16 	one year in the state moved to;
69.17 	(7)(5) on or before October 1 in each even-numbered year make a biennial report 
69.18 	to the governor concerning the activities of the agency;
69.19 	(8)(6) enter into agreements with other departments of the state as necessary to meet 
69.20 	all requirements of the federal government; and
69.21 	(9)(7) cooperate with the commissioner of education to enforce the requirements 
69.22 	for program integrity and fraud prevention for investigation for child care assistance 
69.23 	under chapter 119B.
69.24 	(b) The state agency may:
69.25 	(1) subpoena witnesses and administer oaths, make rules, and take such action as 
69.26 	may be necessary or desirable for carrying out the provisions of Laws 1937, chapter 438. 
69.27 	All rules made by the state agency shall be binding on the counties and shall be complied 
69.28 	with by the respective county agencies;
69.29 	(2) cooperate with other state agencies in establishing reciprocal agreements in 
69.30 	instances where a child receiving Minnesota family investment program assistance moves 
69.31 	or contemplates moving into or out of the state, in order that the child may continue 
69.32 	to receive supervised aid from the state moved from until the child has resided for one 
69.33 	year in the state moved to; and
69.34 	(3) administer oaths and affirmations, take depositions, certify to official acts, and 
69.35 	issue subpoenas to compel the attendance of individuals and the production of documents 
70.1 	and other personal property necessary in connection with the administration of programs 
70.2 	administered by the Department of Human Services.
70.3 	(c) The fees for service of a subpoena in paragraph (b), clause (3), must be paid in 
70.4 	the same manner as prescribed by law for a service of process issued by a district court. 
70.5 	Witnesses must receive the same fees and mileage as in civil actions.
70.6 	(d) The subpoena in paragraph (b), clause (3), shall be enforceable through the 
70.7 	district court in the district where the subpoena is issued.

70.8 	Sec. 16. Minnesota Statutes 2006, section 256.01, is amended by adding a subdivision 
70.9 	to read:
70.10 		Subd. 23.Administrative simplification; county cost study.  (a) The commissioner 
70.11 	shall establish and convene the first meeting of an advisory committee to identify ways 
70.12 	to simplify and streamline human services laws and administrative requirements. The 
70.13 	advisory committee shall select its chair from its membership at the first meeting.
70.14 	(b) The committee shall consist of three senators appointed by the senate 
70.15 	Subcommittee on Committees of the Committee on Rules and Administration, three 
70.16 	state representatives appointed by the speaker of the house of representatives, and 
70.17 	nine department staff and county representatives appointed by the commissioner. The 
70.18 	appointments required under this paragraph must be completed by September 1, 2007.
70.19 	(c) The committee shall discuss methods of reducing inconsistency between 
70.20 	programs and complexity within programs in order to improve administrative efficiency 
70.21 	and reduce the risk of recipient noncompliance. Topics for discussion may include child 
70.22 	support enforcement, adoption services, child care licensing, child care assistance, and 
70.23 	other programs. The state senators and state representatives on the advisory committee, 
70.24 	in consultation with the advisory committee, shall report annually to the chairs of the 
70.25 	legislative committees and divisions with jurisdiction over the Department of Human 
70.26 	Services, beginning January 15, 2008, with recommendations developed by the advisory 
70.27 	group.
70.28 	(d) The commissioner, in consultation with the advisory committee, shall study 
70.29 	and report to the legislature by January 15, 2009, on the transfer of any responsibilities 
70.30 	between the department and counties that would result in more efficient and effective 
70.31 	administration of human services programs.
70.32 	(e) This section expires on June 30, 2012.

70.33 	Sec. 17. Minnesota Statutes 2006, section 256.015, subdivision 7, is amended to read:
71.1 		Subd. 7.Cooperation required. Upon the request of the Department of Human 
71.2 	Services, any state agency or third party payer shall cooperate with the department in 
71.3 	furnishing information to help establish a third party liability. Upon the request of the 
71.4 	Department of Human Services or county child support or human service agencies, any 
71.5 	employer or third party payer shall cooperate in furnishing information about group health 
71.6 	insurance plans or medical benefit plans available to its employees. For purposes of 
71.7 	section 176.191, subdivision 4, the Department of Labor and Industry may allow the 
71.8 	Department of Human Services and county agencies direct access and data matching on 
71.9 	information relating to workers' compensation claims in order to determine whether the 
71.10 	claimant has reported the fact of a pending claim and the amount paid to or on behalf of 
71.11 	the claimant to the Department of Human Services. The Department of Human Services 
71.12 	and county agencies shall limit its use of information gained from agencies, third party 
71.13 	payers, and employers to purposes directly connected with the administration of its public 
71.14 	assistance and child support programs. The provision of information by agencies, third 
71.15 	party payers, and employers to the department under this subdivision is not a violation of 
71.16 	any right of confidentiality or data privacy.

71.17 	Sec. 18. Minnesota Statutes 2006, section 256.017, subdivision 1, is amended to read:
71.18 		Subdivision 1.Authority and purpose. The commissioner shall administer a 
71.19 	compliance system for the Minnesota family investment program, the food stamp or food 
71.20 	support program, emergency assistance, general assistance, medical assistance, general 
71.21 	assistance medical care, emergency general assistance, Minnesota supplemental assistance, 
71.22 	preadmission screening, and alternative care grants, and the child care assistance program
71.23 	under the powers and authorities named in section 256.01, subdivision 2. The purpose of 
71.24 	the compliance system is to permit the commissioner to supervise the administration of 
71.25 	public assistance programs and to enforce timely and accurate distribution of benefits, 
71.26 	completeness of service and efficient and effective program management and operations, 
71.27 	to increase uniformity and consistency in the administration and delivery of public 
71.28 	assistance programs throughout the state, and to reduce the possibility of sanctions and 
71.29 	fiscal disallowances for noncompliance with federal regulations and state statutes. 
71.30 	The commissioner shall utilize training, technical assistance, and monitoring 
71.31 	activities, as specified in section 256.01, subdivision 2, to encourage county agency 
71.32 	compliance with written policies and procedures. 

71.33 	Sec. 19. Minnesota Statutes 2006, section 256.017, subdivision 9, is amended to read:
72.1 		Subd. 9.Timing and disposition of penalty and case disallowance funds. Quality 
72.2 	control case penalty and administrative penalty amounts shall be disallowed or withheld 
72.3 	from the next regular reimbursement made to the county agency for state and federal 
72.4 	benefit reimbursements and federal administrative reimbursements for all programs 
72.5 	covered in this section, according to procedures established in statute, but shall not be 
72.6 	imposed sooner than 30 calendar days from the date of written notice of such penalties. 
72.7 	Except for penalties withheld under the child care assistance program, all penalties 
72.8 	must be deposited in the county incentive fund provided in section 256.018. Penalties 
72.9 	withheld under the child care assistance program shall be reallocated to counties using the 
72.10 	allocation formula under section 119B.03, subdivision 5. All penalties must be imposed 
72.11 	according to this provision until a decision is made regarding the status of a written 
72.12 	exception. Penalties must be returned to county agencies when a review of a written 
72.13 	exception results in a decision in their favor. 

72.14 	Sec. 20. Minnesota Statutes 2006, section 256.984, subdivision 1, is amended to read:
72.15 		Subdivision 1.Declaration. Every application for public assistance under this 
72.16 	chapter or chapters 256B, 256D, 256J, and 256L; child care programs under chapter 119B; 
72.17 	and food stamps or food support under chapter 393 shall be in writing or reduced to 
72.18 	writing as prescribed by the state agency and shall contain the following declaration which 
72.19 	shall be signed by the applicant:
72.20 	"I declare under the penalties of perjury that this application has been examined 
72.21 	by me and to the best of my knowledge is a true and correct statement of every 
72.22 	material point. I understand that a person convicted of perjury may be sentenced 
72.23 	to imprisonment of not more than five years or to payment of a fine of not more 
72.24 	than $10,000, or both."

72.25 	Sec. 21. [256D.0516] EXPIRATION OF FOOD SUPPORT BENEFITS AND 
72.26 	REPORTING REQUIREMENTS.
72.27 		Subdivision 1.Expiration of food support benefits. Food support benefits shall 
72.28 	not be stored off line or expunged from a recipient's account unless the benefits have not 
72.29 	been accessed for 12 months after the month they were issued.
72.30 		Subd. 2.Food support reporting requirements. The commissioner of human 
72.31 	services shall implement simplified reporting as permitted under the Food Stamp Act of 
72.32 	1977, as amended, and the food stamp regulations in Code of Federal Regulations, title 
72.33 	7, part 273. Food support recipient households required to report periodically shall not 
72.34 	be required to report more often than one time every six months. This provision shall 
73.1 	not apply to households receiving food benefits under the Minnesota family investment 
73.2 	program waiver.

73.3 	EFFECTIVE DATE. Subdivision 1 is effective February 1, 2008, and subdivision 
73.4 	2 is effective May 1, 2008.

73.5 	Sec. 22. Minnesota Statutes 2006, section 256J.01, is amended by adding a subdivision 
73.6 	to read:
73.7 		Subd. 6.Legislative approval to move programs or activities. The commissioner 
73.8 	shall not move programs or activities funded with MFIP or TANF maintenance of effort 
73.9 	funds to other funding sources without legislative approval.

73.10 	Sec. 23. Minnesota Statutes 2006, section 256J.02, subdivision 1, is amended to read:
73.11 		Subdivision 1.Commissioner's authority to administer block grant funds. The 
73.12 	commissioner of human services is authorized to receive, administer, and expend funds 
73.13 	available under the TANF block grant authorized under title I of Public Law 104-193, the 
73.14 	Personal Responsibility and Work Opportunity Reconciliation Act of 1996, and under 
73.15 	Public Law 109-171, the Deficit Reduction Act of 2005.

73.16 	Sec. 24. Minnesota Statutes 2006, section 256J.02, subdivision 4, is amended to read:
73.17 		Subd. 4.Authority to transfer. Subject to limitations of title I of Public Law 
73.18 	104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, 
73.19 	as amended, and under Public Law 109-171, the Deficit Reduction Act of 2005, the 
73.20 	legislature may transfer money from the TANF block grant to the child care fund under 
73.21 	chapter 119B, or the Title XX block grant.

73.22 	Sec. 25. Minnesota Statutes 2006, section 256J.021, is amended to read:
73.23 	256J.021 SEPARATE STATE PROGRAM FOR USE OF STATE MONEY.
73.24 	(a) Until October 1,  2006, the commissioner of human services must treat MFIP 
73.25 	expenditures made to or on behalf of any minor child under section 256J.02, subdivision 
73.26 	2, clause (1), who is a resident of this state under section 256J.12, and who is part of a 
73.27 	two-parent eligible household as expenditures under a separately funded state program 
73.28 	and report those expenditures to the federal Department of Health and Human Services as 
73.29 	separate state program expenditures under Code of Federal Regulations, title 45, section 
73.30 	263.5. Families receiving assistance under this section shall comply with all applicable 
73.31 	requirements in this chapter.
74.1 	(b) Beginning October 1, 2006, the commissioner of human services must treat 
74.2 	MFIP expenditures made to or on behalf of any minor child under section 256J.02, 
74.3 	subdivision 2, clause (1), who is a resident of this state under section 256J.12, and who is 
74.4 	part of a two-parent eligible household, as expenditures under a separately funded state 
74.5 	program. These expenditures shall not count toward the state's maintenance of effort 
74.6 	(MOE) requirements under the federal Temporary Assistance to Needy Families (TANF) 
74.7 	program except if counting certain families would allow the commissioner to avoid a 
74.8 	federal penalty. Families receiving assistance under this section must comply with all 
74.9 	applicable requirements in this chapter.
74.10 	(c) Beginning February 1, 2008, the commissioner of human services shall treat 
74.11 	MFIP expenditures made to or on behalf of any minor child who is part of a household 
74.12 	that meets criteria in section 256J.575, subdivision 3, as expenditures under a separately 
74.13 	funded state program under section 256J.575, subdivision 8.

74.14 	Sec. 26. Minnesota Statutes 2006, section 256J.08, subdivision 65, is amended to read:
74.15 		Subd. 65.Participant. (a) "Participant" means includes any of the following:
74.16 	(1) a person who is currently receiving cash assistance or the food portion available 
74.17 	through MFIP. A person who fails to withdraw or access electronically any portion of the 
74.18 	person's cash and food assistance payment by the end of the payment month, who makes a 
74.19 	written request for closure before the first of a payment month and repays cash and food 
74.20 	assistance electronically issued for that payment month within that payment month, or 
74.21 	who returns any uncashed assistance check and food coupons and withdraws from the 
74.22 	program is not a participant.;
74.23 	(2) a person who withdraws a cash or food assistance payment by electronic transfer 
74.24 	or receives and cashes an MFIP assistance check or food coupons and is subsequently 
74.25 	determined to be ineligible for assistance for that period of time is a participant, regardless 
74.26 	whether that assistance is repaid. The term "participant" includes;
74.27 	(3) the caregiver relative and the minor child whose needs are included in the 
74.28 	assistance payment.;
74.29 	(4) a person in an assistance unit who does not receive a cash and food assistance 
74.30 	payment because the case has been suspended from MFIP is a participant.;
74.31 	(5) a person who receives cash payments under the diversionary work program 
74.32 	under section 256J.95 is a participant.; and
74.33 	(6) a person who receives cash payments under family stabilization services under 
74.34 	section 256J.575.
75.1 	(b) "Participant" does not include a person who fails to withdraw or access 
75.2 	electronically any portion of the person's cash and food assistance payment by the end of 
75.3 	the payment month, who makes a written request for closure before the first of a payment 
75.4 	month and repays cash and food assistance electronically issued for that payment month 
75.5 	within that payment month, or who returns any uncashed assistance check and food 
75.6 	coupons and withdraws from the program.

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

75.8 	Sec. 27. Minnesota Statutes 2006, section 256J.20, subdivision 3, is amended to read:
75.9 		Subd. 3.Other property limitations. To be eligible for MFIP, the equity value of 
75.10 	all nonexcluded real and personal property of the assistance unit must not exceed $2,000 
75.11 	for applicants and $5,000 for ongoing participants. The value of assets in clauses (1) to 
75.12 	(19) must be excluded when determining the equity value of real and personal property:
75.13 	(1) a licensed vehicle up to a loan value of less than or equal to $7,500. The county 
75.14 	agency shall apply any excess loan value as if it were equity value to the asset limit 
75.15 	described in this section$15,000. If the assistance unit owns more than one licensed 
75.16 	vehicle, the county agency shall determine the vehicle with the highest loan value and 
75.17 	count only the loan value over $7,500, the loan value of all additional vehicles and 
75.18 	exclude the combined loan value of less than or equal to $7,500. The county agency shall 
75.19 	apply any excess loan value as if it were equity value to the asset limit described in this 
75.20 	section, excluding: (i) the value of one vehicle per physically disabled person when the 
75.21 	vehicle is needed to transport the disabled unit member; this exclusion does not apply to 
75.22 	mentally disabled people; (ii) the value of special equipment for a disabled member of 
75.23 	the assistance unit; and (iii) any vehicle used for long-distance travel, other than daily 
75.24 	commuting, for the employment of a unit member.
75.25 	The county agency shall count the loan value of all other vehicles and apply this 
75.26 	amount as if it were equity value to the asset limit described in this section. To establish the 
75.27 	loan value of vehicles, a county agency must use the N.A.D.A. Official Used Car Guide, 
75.28 	Midwest Edition, for newer model cars. When a vehicle is not listed in the guidebook, 
75.29 	or when the applicant or participant disputes the loan value listed in the guidebook as 
75.30 	unreasonable given the condition of the particular vehicle, the county agency may require 
75.31 	the applicant or participant document the loan value by securing a written statement from 
75.32 	a motor vehicle dealer licensed under section 168.27, stating the amount that the dealer 
75.33 	would pay to purchase the vehicle. The county agency shall reimburse the applicant or 
75.34 	participant for the cost of a written statement that documents a lower loan value; 
75.35 	(2) the value of life insurance policies for members of the assistance unit;
76.1 	(3) one burial plot per member of an assistance unit;
76.2 	(4) the value of personal property needed to produce earned income, including 
76.3 	tools, implements, farm animals, inventory, business loans, business checking and 
76.4 	savings accounts used at least annually and used exclusively for the operation of a 
76.5 	self-employment business, and any motor vehicles if at least 50 percent of the vehicle's use 
76.6 	is to produce income and if the vehicles are essential for the self-employment business;
76.7 	(5) the value of personal property not otherwise specified which is commonly 
76.8 	used by household members in day-to-day living such as clothing, necessary household 
76.9 	furniture, equipment, and other basic maintenance items essential for daily living;
76.10 	(6) the value of real and personal property owned by a recipient of Supplemental 
76.11 	Security Income or Minnesota supplemental aid;
76.12 	(7) the value of corrective payments, but only for the month in which the payment 
76.13 	is received and for the following month;
76.14 	(8) a mobile home or other vehicle used by an applicant or participant as the 
76.15 	applicant's or participant's home;
76.16 	(9) money in a separate escrow account that is needed to pay real estate taxes or 
76.17 	insurance and that is used for this purpose;
76.18 	(10) money held in escrow to cover employee FICA, employee tax withholding, 
76.19 	sales tax withholding, employee worker compensation, business insurance, property rental, 
76.20 	property taxes, and other costs that are paid at least annually, but less often than monthly;
76.21 	(11) monthly assistance payments for the current month's or short-term emergency 
76.22 	needs under section 256J.626, subdivision 2; 
76.23 	(12) the value of school loans, grants, or scholarships for the period they are 
76.24 	intended to cover;
76.25 	(13) payments listed in section 256J.21, subdivision 2, clause (9), which are held 
76.26 	in escrow for a period not to exceed three months to replace or repair personal or real 
76.27 	property; 
76.28 	(14) income received in a budget month through the end of the payment month;
76.29 	(15) savings from earned income of a minor child or a minor parent that are set aside 
76.30 	in a separate account designated specifically for future education or employment costs;
76.31 	(16) the federal earned income credit, Minnesota working family credit, state and 
76.32 	federal income tax refunds, state homeowners and renters credits under chapter 290A, 
76.33 	property tax rebates and other federal or state tax rebates in the month received and the 
76.34 	following month;
76.35 	(17) payments excluded under federal law as long as those payments are held in a 
76.36 	separate account from any nonexcluded funds;
77.1 	(18) the assets of children ineligible to receive MFIP benefits because foster care or 
77.2 	adoption assistance payments are made on their behalf; and
77.3 	(19) the assets of persons whose income is excluded under section 256J.21, 
77.4 	subdivision 2, clause (43). 

77.5 	Sec. 28. Minnesota Statutes 2006, section 256J.21, subdivision 2, is amended to read:
77.6 		Subd. 2.Income exclusions. The following must be excluded in determining a 
77.7 	family's available income:
77.8 	(1) payments for basic care, difficulty of care, and clothing allowances received for 
77.9 	providing family foster care to children or adults under Minnesota Rules, parts 9555.5050 
77.10 	to 9555.6265, 9560.0521, and 9560.0650 to 9560.0655, and payments received and used 
77.11 	for care and maintenance of a third-party beneficiary who is not a household member;
77.12 	(2) reimbursements for employment training received through the Workforce 
77.13 	Investment Act of 1998, United States Code, title 20, chapter 73, section 9201;
77.14 	(3) reimbursement for out-of-pocket expenses incurred while performing volunteer 
77.15 	services, jury duty, employment, or informal carpooling arrangements directly related to 
77.16 	employment;
77.17 	(4) all educational assistance, except the county agency must count graduate student 
77.18 	teaching assistantships, fellowships, and other similar paid work as earned income and, 
77.19 	after allowing deductions for any unmet and necessary educational expenses, shall 
77.20 	count scholarships or grants awarded to graduate students that do not require teaching 
77.21 	or research as unearned income;
77.22 	(5) loans, regardless of purpose, from public or private lending institutions, 
77.23 	governmental lending institutions, or governmental agencies;
77.24 	(6) loans from private individuals, regardless of purpose, provided an applicant or 
77.25 	participant documents that the lender expects repayment;
77.26 	(7)(i) state income tax refunds; and
77.27 	(ii) federal income tax refunds;
77.28 	(8)(i) federal earned income credits;
77.29 	(ii) Minnesota working family credits;
77.30 	(iii) state homeowners and renters credits under chapter 290A; and
77.31 	(iv) federal or state tax rebates;
77.32 	(9) funds received for reimbursement, replacement, or rebate of personal or real 
77.33 	property when these payments are made by public agencies, awarded by a court, solicited 
77.34 	through public appeal, or made as a grant by a federal agency, state or local government, 
77.35 	or disaster assistance organizations, subsequent to a presidential declaration of disaster;
78.1 	(10) the portion of an insurance settlement that is used to pay medical, funeral, and 
78.2 	burial expenses, or to repair or replace insured property;
78.3 	(11) reimbursements for medical expenses that cannot be paid by medical assistance;
78.4 	(12) payments by a vocational rehabilitation program administered by the state 
78.5 	under chapter 268A, except those payments that are for current living expenses;
78.6 	(13) in-kind income, including any payments directly made by a third party to a 
78.7 	provider of goods and services;
78.8 	(14) assistance payments to correct underpayments, but only for the month in which 
78.9 	the payment is received;
78.10 	(15) payments for short-term emergency needs under section 256J.626, subdivision 
78.11 	2;
78.12 	(16) funeral and cemetery payments as provided by section 256.935;
78.13 	(17) nonrecurring cash gifts of $30 or less, not exceeding $30 per participant in 
78.14 	a calendar month;
78.15 	(18) any form of energy assistance payment made through Public Law 97-35, 
78.16 	Low-Income Home Energy Assistance Act of 1981, payments made directly to energy 
78.17 	providers by other public and private agencies, and any form of credit or rebate payment 
78.18 	issued by energy providers;
78.19 	(19) Supplemental Security Income (SSI), including retroactive SSI payments and 
78.20 	other income of an SSI recipient, except as described in section 256J.37, subdivision 3b;
78.21 	(20) Minnesota supplemental aid, including retroactive payments;
78.22 	(21) proceeds from the sale of real or personal property;
78.23 	(22) state adoption assistance payments under section 259.67, and up to an equal 
78.24 	amount of county adoption assistance payments;
78.25 	(23) state-funded family subsidy program payments made under section 252.32
78.26 	to help families care for children with developmental disabilities, consumer support 
78.27 	grant funds under section 256.476, and resources and services for a disabled household 
78.28 	member under one of the home and community-based waiver services programs under 
78.29 	chapter 256B;
78.30 	(24) interest payments and dividends from property that is not excluded from and 
78.31 	that does not exceed the asset limit;
78.32 	(25) rent rebates;
78.33 	(26) income earned by a minor caregiver, minor child through age 6, or a minor 
78.34 	child who is at least a half-time student in an approved elementary or secondary education 
78.35 	program;
79.1 	(27) income earned by a caregiver under age 20 who is at least a half-time student in 
79.2 	an approved elementary or secondary education program;
79.3 	(28) MFIP child care payments under section 119B.05;
79.4 	(29) all other payments made through MFIP to support a caregiver's pursuit of 
79.5 	greater economic stability;
79.6 	(30) income a participant receives related to shared living expenses;
79.7 	(31) reverse mortgages;
79.8 	(32) benefits provided by the Child Nutrition Act of 1966, United States Code, title 
79.9 	42, chapter 13A, sections 1771 to 1790;
79.10 	(33) benefits provided by the women, infants, and children (WIC) nutrition program, 
79.11 	United States Code, title 42, chapter 13A, section 1786;
79.12 	(34) benefits from the National School Lunch Act, United States Code, title 42, 
79.13 	chapter 13, sections 1751 to 1769e;
79.14 	(35) relocation assistance for displaced persons under the Uniform Relocation 
79.15 	Assistance and Real Property Acquisition Policies Act of 1970, United States Code, title 
79.16 	42, chapter 61, subchapter II, section 4636, or the National Housing Act, United States 
79.17 	Code, title 12, chapter 13, sections 1701 to 1750jj;
79.18 	(36) benefits from the Trade Act of 1974, United States Code, title 19, chapter 
79.19 	12, part 2, sections 2271 to 2322;
79.20 	(37) war reparations payments to Japanese Americans and Aleuts under United 
79.21 	States Code, title 50, sections 1989 to 1989d;
79.22 	(38) payments to veterans or their dependents as a result of legal settlements 
79.23 	regarding Agent Orange or other chemical exposure under Public Law 101-239, section 
79.24 	10405, paragraph (a)(2)(E);
79.25 	(39) income that is otherwise specifically excluded from MFIP consideration in 
79.26 	federal law, state law, or federal regulation;
79.27 	(40) security and utility deposit refunds;
79.28 	(41) American Indian tribal land settlements excluded under Public Laws 98-123, 
79.29 	98-124, and 99-377 to the Mississippi Band Chippewa Indians of White Earth, Leech 
79.30 	Lake, and Mille Lacs reservations and payments to members of the White Earth Band, 
79.31 	under United States Code, title 25, chapter 9, section 331, and chapter 16, section 1407;
79.32 	(42) all income of the minor parent's parents and stepparents when determining the 
79.33 	grant for the minor parent in households that include a minor parent living with parents or 
79.34 	stepparents on MFIP with other children;
79.35 	(43) income of the minor parent's parents and stepparents equal to 200 percent of the 
79.36 	federal poverty guideline for a family size not including the minor parent and the minor 
80.1 	parent's child in households that include a minor parent living with parents or stepparents 
80.2 	not on MFIP when determining the grant for the minor parent. The remainder of income is 
80.3 	deemed as specified in section 256J.37, subdivision 1b;
80.4 	(44) payments made to children eligible for relative custody assistance under section 
80.5 	257.85;
80.6 	(45) vendor payments for goods and services made on behalf of a client unless the 
80.7 	client has the option of receiving the payment in cash; and
80.8 	(46) the principal portion of a contract for deed payment.; and
80.9 	(47) cash payments to individuals enrolled for full-time service as a volunteer under 
80.10 	AmeriCorps programs including AmeriCorps VISTA, AmeriCorps State, AmeriCorps 
80.11 	National, and AmeriCorps NCCC.

80.12 	Sec. 29. Minnesota Statutes 2006, section 256J.32, subdivision 6, is amended to read:
80.13 		Subd. 6.Recertification. The county agency shall recertify eligibility in an annual 
80.14 	face-to-face interview with the participant and verify the following:
80.15 	(1) presence of the minor child in the home, if questionable;
80.16 	(2) income, unless excluded, including self-employment expenses used as a 
80.17 	deduction or deposits or withdrawals from business accounts;
80.18 	(3) assets when the value is within $200 of the asset limit;
80.19 	(4) information to establish an exception under section 256J.24, subdivision 9, 
80.20 	if questionable; and
80.21 	(5) inconsistent information, if related to eligibility; and
80.22 	(6) whether a single caregiver household meets requirements in section 256J.575, 
80.23 	subdivision 3.

80.24 	Sec. 30. Minnesota Statutes 2006, section 256J.42, subdivision 1, is amended to read:
80.25 		Subdivision 1.Time limit. (a) Except as otherwise provided for in this section, an 
80.26 	assistance unit in which any adult caregiver has received 60 months of cash assistance 
80.27 	funded in whole or in part by the TANF block grant in this or any other state or 
80.28 	United States territory, or from a tribal TANF program, MFIP, the AFDC program 
80.29 	formerly codified in sections 256.72 to 256.87, or the family general assistance program 
80.30 	formerly codified in sections 256D.01 to 256D.23, funded in whole or in part by state 
80.31 	appropriations, is ineligible to receive MFIP. Any cash assistance funded with TANF 
80.32 	dollars in this or any other state or United States territory, or from a tribal TANF program, 
80.33 	or MFIP assistance funded in whole or in part by state appropriations, that was received 
80.34 	by the unit on or after the date TANF was implemented, including any assistance received 
81.1 	in states or United States territories of prior residence, counts toward the 60-month 
81.2 	limitation. Months during which any cash assistance is received by an assistance unit 
81.3 	with a mandatory member who is disqualified for wrongfully obtaining public assistance 
81.4 	under section 256.98, subdivision 8, counts toward the time limit for the disqualified 
81.5 	member. The 60-month limit applies to a minor caregiver except under subdivision 5. The 
81.6 	60-month time period does not need to be consecutive months for this provision to apply. 
81.7 	(b) The months before July 1998 in which individuals received assistance as part of 
81.8 	the field trials as an MFIP, MFIP-R, or MFIP or MFIP-R comparison group family are 
81.9 	not included in the 60-month time limit.

81.10 	EFFECTIVE DATE. This section is effective October 1, 2007.

81.11 	Sec. 31. Minnesota Statutes 2006, section 256J.46, is amended by adding a subdivision 
81.12 	to read:
81.13 		Subd. 3.Restrictions on sanctions. A participant shall not be sanctioned for 
81.14 	failure to meet the agreed upon hours in a participant's employment plan under section 
81.15 	256J.521, subdivision 2, when the participant fails to meet the agreed upon hours of 
81.16 	participation in paid employment because the participant is not eligible for holiday pay 
81.17 	and the participant's place of employment is closed for a holiday.

81.18 	Sec. 32. Minnesota Statutes 2006, section 256J.49, subdivision 13, is amended to read:
81.19 		Subd. 13.Work activity. "Work activity" means any activity in a participant's 
81.20 	approved employment plan that leads to employment. For purposes of the MFIP program, 
81.21 	this includes activities that meet the definition of work activity under the participation 
81.22 	requirements of TANF. Work activity includes:
81.23 	(1) unsubsidized employment, including work study and paid apprenticeships or 
81.24 	internships;
81.25 	(2) subsidized private sector or public sector employment, including grant diversion 
81.26 	as specified in section 256J.69, on-the-job training as specified in section 256J.66, 
81.27 	the self-employment investment demonstration program (SEID) as specified in section 
81.28 	256J.65, paid work experience, and supported work when a wage subsidy is provided; 
81.29 	(3) unpaid work experience, including community service, volunteer work, 
81.30 	the community work experience program as specified in section 256J.67, unpaid 
81.31 	apprenticeships or internships, and supported work when a wage subsidy is not provided;. 
81.32 	Unpaid work experience is only an option if the participant has been unable to obtain or 
81.33 	maintain paid employment in the competitive labor market, and no paid work experience 
81.34 	programs are available to the participant. Unless a participant consents to participating 
82.1 	in unpaid work experience, the participant's employment plan may only include unpaid 
82.2 	work experience if including the unpaid work experience in the plan will meet the 
82.3 	following criteria:
82.4 	(i) the unpaid work experience will provide the participant specific skills or 
82.5 	experience that cannot be obtained through other work activity options where the 
82.6 	participant resides or is willing to reside; and 
82.7 	(ii) the skills or experience gained through the unpaid work experience will result 
82.8 	in higher wages for the participant than the participant could earn without the unpaid 
82.9 	work experience;
82.10 	(4) job search including job readiness assistance, job clubs, job placement, 
82.11 	job-related counseling, and job retention services;
82.12 	(5) job readiness education, including English as a second language (ESL) or 
82.13 	functional work literacy classes as limited by the provisions of section 256J.531, 
82.14 	subdivision 2, general educational development (GED) course work, high school 
82.15 	completion, and adult basic education as limited by the provisions of section 256J.531, 
82.16 	subdivision 1; 
82.17 	(6) job skills training directly related to employment, including education and 
82.18 	training that can reasonably be expected to lead to employment, as limited by the 
82.19 	provisions of section 256J.53; 
82.20 	(7) providing child care services to a participant who is working in a community 
82.21 	service program;
82.22 	(8) activities included in the employment plan that is developed under section 
82.23 	256J.521, subdivision 3; and 
82.24 	(9) preemployment activities including chemical and mental health assessments, 
82.25 	treatment, and services; learning disabilities services; child protective services; family 
82.26 	stabilization services; or other programs designed to enhance employability.

82.27 	Sec. 33. Minnesota Statutes 2006, section 256J.521, subdivision 1, is amended to read:
82.28 		Subdivision 1.Assessments. (a) For purposes of MFIP employment services, 
82.29 	assessment is a continuing process of gathering information related to employability 
82.30 	for the purpose of identifying both participant's strengths and strategies for coping with 
82.31 	issues that interfere with employment. The job counselor must use information from the 
82.32 	assessment process to develop and update the employment plan under subdivision 2 or 3, 
82.33 	as appropriate, and to determine whether the participant qualifies for a family violence 
82.34 	waiver including an employment plan under subdivision 3, and to determine whether the 
82.35 	participant should be referred to family stabilization services under section 256J.575.
83.1 	(b) The scope of assessment must cover at least the following areas:
83.2 	(1) basic information about the participant's ability to obtain and retain employment, 
83.3 	including: a review of the participant's education level; interests, skills, and abilities; prior 
83.4 	employment or work experience; transferable work skills; child care and transportation 
83.5 	needs;
83.6 	(2) identification of personal and family circumstances that impact the participant's 
83.7 	ability to obtain and retain employment, including: any special needs of the children, the 
83.8 	level of English proficiency, family violence issues, and any involvement with social 
83.9 	services or the legal system;
83.10 	(3) the results of a mental and chemical health screening tool designed by the 
83.11 	commissioner and results of the brief screening tool for special learning needs. Screening 
83.12 	tools for mental and chemical health and special learning needs must be approved by the 
83.13 	commissioner and may only be administered by job counselors or county staff trained in 
83.14 	using such screening tools. The commissioner shall work with county agencies to develop 
83.15 	protocols for referrals and follow-up actions after screens are administered to participants, 
83.16 	including guidance on how employment plans may be modified based upon outcomes 
83.17 	of certain screens. Participants must be told of the purpose of the screens and how the 
83.18 	information will be used to assist the participant in identifying and overcoming barriers to 
83.19 	employment. Screening for mental and chemical health and special learning needs must 
83.20 	be completed by participants who are unable to find suitable employment after six weeks 
83.21 	of job search under subdivision 2, paragraph (b), and participants who are determined to 
83.22 	have barriers to employment under subdivision 2, paragraph (d). Failure to complete the 
83.23 	screens will result in sanction under section 256J.46; and 
83.24 	(4) a comprehensive review of participation and progress for participants who have 
83.25 	received MFIP assistance and have not worked in unsubsidized employment during the 
83.26 	past 12 months. The purpose of the review is to determine the need for additional services 
83.27 	and supports, including placement in subsidized employment or unpaid work experience 
83.28 	under section 256J.49, subdivision 13, or referral to family stabilization services under 
83.29 	section 256J.575. 
83.30 	(c) Information gathered during a caregiver's participation in the diversionary work 
83.31 	program under section 256J.95 must be incorporated into the assessment process. 
83.32 	(d) The job counselor may require the participant to complete a professional chemical 
83.33 	use assessment to be performed according to the rules adopted under section 254A.03, 
83.34 	subdivision 3, including provisions in the administrative rules which recognize the cultural 
83.35 	background of the participant, or a professional psychological assessment as a component 
83.36 	of the assessment process, when the job counselor has a reasonable belief, based on 
84.1 	objective evidence, that a participant's ability to obtain and retain suitable employment 
84.2 	is impaired by a medical condition. The job counselor may assist the participant with 
84.3 	arranging services, including child care assistance and transportation, necessary to meet 
84.4 	needs identified by the assessment. Data gathered as part of a professional assessment 
84.5 	must be classified and disclosed according to the provisions in section 13.46.

84.6 	Sec. 34. Minnesota Statutes 2006, section 256J.521, subdivision 2, is amended to read:
84.7 		Subd. 2.Employment plan; contents. (a) Based on the assessment under 
84.8 	subdivision 1, the job counselor and the participant must develop an employment plan 
84.9 	that includes participation in activities and hours that meet the requirements of section 
84.10 	256J.55, subdivision 1. The purpose of the employment plan is to identify for each 
84.11 	participant the most direct path to unsubsidized employment and any subsequent steps that 
84.12 	support long-term economic stability. The employment plan should be developed using 
84.13 	the highest level of activity appropriate for the participant. Activities must be chosen from 
84.14 	clauses (1) to (6), which are listed in order of preference. Notwithstanding this order of 
84.15 	preference for activities, priority must be given for activities related to a family violence 
84.16 	waiver when developing the employment plan. The employment plan must also list the 
84.17 	specific steps the participant will take to obtain employment, including steps necessary 
84.18 	for the participant to progress from one level of activity to another, and a timetable for 
84.19 	completion of each step. Levels of activity include:
84.20 	(1) unsubsidized employment;
84.21 	(2) job search;
84.22 	(3) subsidized employment or unpaid work experience;
84.23 	(4) unsubsidized employment and job readiness education or job skills training;
84.24 	(5) unsubsidized employment or unpaid work experience and activities related to 
84.25 	a family violence waiver or preemployment needs; and
84.26 	(6) activities related to a family violence waiver or preemployment needs.
84.27 	(b) Participants who are determined to possess sufficient skills such that the 
84.28 	participant is likely to succeed in obtaining unsubsidized employment must job search at 
84.29 	least 30 hours per week for up to six weeks and accept any offer of suitable employment. 
84.30 	The remaining hours necessary to meet the requirements of section 256J.55, subdivision 
84.31 	1, may be met through participation in other work activities under section 256J.49, 
84.32 	subdivision 13. The participant's employment plan must specify, at a minimum: (1) 
84.33 	whether the job search is supervised or unsupervised; (2) support services that will 
84.34 	be provided; and (3) how frequently the participant must report to the job counselor. 
84.35 	Participants who are unable to find suitable employment after six weeks must meet 
85.1 	with the job counselor to determine whether other activities in paragraph (a) should be 
85.2 	incorporated into the employment plan. Job search activities which are continued after six 
85.3 	weeks must be structured and supervised. 
85.4 	(c) Beginning July 1, 2004, activities and hourly requirements in the employment 
85.5 	plan may be adjusted as necessary to accommodate the personal and family circumstances 
85.6 	of participants identified under section 256J.561, subdivision 2, paragraph (d). Participants 
85.7 	who no longer meet the provisions of section 256J.561, subdivision 2, paragraph (d), 
85.8 	must meet with the job counselor within ten days of the determination to revise the 
85.9 	employment plan. 
85.10 	(d) Participants who are determined to have barriers to obtaining or retaining 
85.11 	employment that will not be overcome during six weeks of job search under paragraph (b) 
85.12 	must work with the job counselor to develop an employment plan that addresses those 
85.13 	barriers by incorporating appropriate activities from paragraph (a), clauses (1) to (6). 
85.14 	The employment plan must include enough hours to meet the participation requirements 
85.15 	in section 256J.55, subdivision 1, unless a compelling reason to require fewer hours 
85.16 	is noted in the participant's file. 
85.17 	(e) The job counselor and the participant must sign the employment plan to indicate 
85.18 	agreement on the contents.
85.19 	(f) Except as provided under paragraph (g), failure to develop or comply with 
85.20 	activities in the plan, or voluntarily quitting suitable employment without good cause, will 
85.21 	result in the imposition of a sanction under section 256J.46. 
85.22 	(g) When a participant fails to meet the agreed upon hours of participation in paid 
85.23 	employment because the participant is not eligible for holiday pay and the participant's 
85.24 	place of employment is closed for a holiday, the job counselor shall not impose a sanction 
85.25 	or increase the hours of participation in any other activity, including paid employment, to 
85.26 	offset the hours that were missed due to the holiday.
85.27 	(f) (h)  Employment plans must be reviewed at least every three months to determine 
85.28 	whether activities and hourly requirements should be revised. The job counselor is 
85.29 	encouraged to allow participants who are participating in at least 20 hours of work 
85.30 	activities to also participate in education and training activities in order to meet the federal 
85.31 	hourly participations rates.

85.32 	Sec. 35. Minnesota Statutes 2006, section 256J.53, subdivision 2, is amended to read:
85.33 		Subd. 2.Approval of postsecondary education or training. (a) In order for a 
85.34 	postsecondary education or training program to be an approved activity in an employment 
85.35 	plan, the participant must be working in unsubsidized employment at least 20 hours per 
86.1 	week. plan must include additional work activities if the education and training activities 
86.2 	do not meet the minimum hours required to meet the federal work participation rate under 
86.3 	Code of Federal Regulations, title 45, sections 261.31 and 261.35.
86.4 	(b) Participants seeking approval of a postsecondary education or training plan 
86.5 	must provide documentation that:
86.6 	(1) the employment goal can only be met with the additional education or training;
86.7 	(2) there are suitable employment opportunities that require the specific education or 
86.8 	training in the area in which the participant resides or is willing to reside;
86.9 	(3) the education or training will result in significantly higher wages for the 
86.10 	participant than the participant could earn without the education or training;
86.11 	(4) the participant can meet the requirements for admission into the program; and
86.12 	(5) there is a reasonable expectation that the participant will complete the training 
86.13 	program based on such factors as the participant's MFIP assessment, previous education, 
86.14 	training, and work history; current motivation; and changes in previous circumstances.
86.15 	(c) The hourly unsubsidized employment requirement does not apply for intensive 
86.16 	education or training programs lasting 12 weeks or less when full-time attendance is 
86.17 	required.
86.18 	(d) Participants with an approved employment plan in place on July 1, 2003, which 
86.19 	includes more than 12 months of postsecondary education or training shall be allowed to 
86.20 	complete that plan provided that hourly requirements in section 256J.55, subdivision 1, 
86.21 	and conditions specified in paragraph (b), and subdivisions 3 and 5 are met. A participant 
86.22 	whose case is subsequently closed for three months or less for reasons other than 
86.23 	noncompliance with program requirements and who returns to MFIP shall be allowed to 
86.24 	complete that plan provided that hourly requirements in section 256J.55, subdivision 1, 
86.25 	and conditions specified in paragraph (b) and subdivisions 3 and 5 are met.

86.26 	Sec. 36. Minnesota Statutes 2006, section 256J.55, subdivision 1, is amended to read:
86.27 		Subdivision 1.Participation requirements. (a) All caregivers must participate 
86.28 	in employment services under sections 256J.515 to 256J.57 concurrent with receipt of 
86.29 	MFIP assistance. 
86.30 	(b) Until July 1, 2004, participants who meet the requirements of section 256J.56 are 
86.31 	exempt from participation requirements.
86.32 	(c) Participants under paragraph (a) must develop and comply with an employment 
86.33 	plan under section 256J.521 or section 256J.54 in the case of a participant under the age of 
86.34 	20 who has not obtained a high school diploma or its equivalent.
87.1 	(d) With the exception of participants under the age of 20 who must meet the 
87.2 	education requirements of section 256J.54, all participants must meet the hourly 
87.3 	participation requirements of TANF or the hourly requirements listed in clauses (1) to 
87.4 	(3), whichever is higher.
87.5 	(1) In single-parent families with no children under six years of age, the job 
87.6 	counselor and the caregiver must develop an employment plan that includes 30 to 35 hours 
87.7 	per week of work activities 130 hours per month of work activities.
87.8 	(2) In single-parent families with a child under six years of age, the job counselor 
87.9 	and the caregiver must develop an employment plan that includes 20 to 35 hours per week 
87.10 	of work activities 87 hours per month of work activities.
87.11 	(3) In two-parent families, the job counselor and the caregivers must develop 
87.12 	employment plans which result in a combined total of at least 55 hours per week of work 
87.13 	activities.
87.14 	(e) Failure to participate in employment services, including the requirement to 
87.15 	develop and comply with an employment plan, including hourly requirements, without 
87.16 	good cause under section 256J.57, shall result in the imposition of a sanction under section 
87.17 	256J.46.

87.18 	Sec. 37. [256J.575] FAMILY STABILIZATION SERVICES.
87.19 		Subdivision 1.Purpose. (a) The family stabilization services serve families who are 
87.20 	not making significant progress within the Minnesota family investment program (MFIP) 
87.21 	due to a variety of barriers to employment.
87.22 	(b) The goal of the services is to stabilize and improve the lives of families at risk 
87.23 	of long-term welfare dependency or family instability due to employment barriers such 
87.24 	as physical disability, mental disability, age, or providing care for a disabled household 
87.25 	member. These services promote and support families to achieve the greatest possible 
87.26 	degree of self-sufficiency.
87.27 		Subd. 2.Definitions. The terms used in this section have the meanings given them 
87.28 	in paragraphs (a) to (d).
87.29 	(a) "Case manager" means the county-designated staff person or employment 
87.30 	services counselor.
87.31 	(b) "Case management" means the services provided by or through the county 
87.32 	agency or through the employment services agency to participating families, including 
87.33 	assessment, information, referrals, and assistance in the preparation and implementation 
87.34 	of a family stabilization plan under subdivision 5.
88.1 	(c) "Family stabilization plan" means a plan developed by a case manager and 
88.2 	the participant, which identifies the participant's most appropriate path to unsubsidized 
88.3 	employment, family stability, and barrier reduction, taking into account the family's 
88.4 	circumstances.
88.5 	(d) "Family stabilization services" means programs, activities, and services in this 
88.6 	section that provide participants and their family members with assistance regarding, 
88.7 	but not limited to:
88.8 	(1) obtaining and retaining unsubsidized employment;
88.9 	(2) family stability;
88.10 	(3) economic stability; and
88.11 	(4) barrier reduction.
88.12 	The goal of the services is to achieve the greatest degree of economic self-sufficiency 
88.13 	and family well-being possible for the family under the circumstances.
88.14 		Subd. 3.Eligibility. (a) The following MFIP or diversionary work program (DWP) 
88.15 	participants are eligible for the services under this section:
88.16 	(1) a participant who meets the requirements for or has been granted a hardship 
88.17 	extension under section 256J.425, subdivision 2 or 3, except that it is not necessary for 
88.18 	the participant to have reached or be approaching 60 months of eligibility for this section 
88.19 	to apply;
88.20 	(2) a participant who is applying for supplemental security income or Social Security 
88.21 	disability insurance; and
88.22 	(3) a participant who is a noncitizen who has been in the United States for 12 or 
88.23 	fewer months.
88.24 	(b) Families must meet all other eligibility requirements for MFIP established in 
88.25 	this chapter. Families are eligible for financial assistance to the same extent as if they 
88.26 	were participating in MFIP.
88.27 	(c) A participant under paragraph (a), clause (3), must be provided with English as a 
88.28 	second language opportunities and skills training for up to 12 months. After 12 months, 
88.29 	the case manager and participant must determine whether the participant should continue 
88.30 	with English as a second language classes or skills training, or both, and continue to 
88.31 	receive family stabilization services.
88.32 		Subd. 4.Universal participation. All caregivers must participate in family 
88.33 	stabilization services as defined in subdivision 2.
88.34 		Subd. 5.Case management; family stabilization plans; coordinated services.
 88.35 	(a) The county agency or employment services provider shall provide family stabilization 
88.36 	services to families through a case management model. A case manager shall be assigned 
89.1 	to each participating family within 30 days after the family is determined to be eligible 
89.2 	for family stabilization services. The case manager, with the full involvement of the 
89.3 	participant, shall recommend, and the county agency shall establish and modify as 
89.4 	necessary, a family stabilization plan for each participating family. If a participant is 
89.5 	already assigned to a county case manager or a county-designated case manager in social 
89.6 	services, disability services, or housing services that case manager already assigned may 
89.7 	be the case manager for purposes of these services.
89.8 	(b) The family stabilization plan must include:
89.9 	(1) each participant's plan for long-term self-sufficiency, including an employment 
89.10 	goal where applicable;
89.11 	(2) an assessment of each participant's strengths and barriers, and any special 
89.12 	circumstances of the participant's family that impact, or are likely to impact, the 
89.13 	participant's progress towards the goals in the plan; and
89.14 	(3) an identification of the services, supports, education, training, and 
89.15 	accommodations needed to reduce or overcome any barriers to enable the family to 
89.16 	achieve self-sufficiency and to fulfill each caregiver's personal and family responsibilities.
89.17 	(c) The case manager and the participant shall meet within 30 days of the family's 
89.18 	referral to the case manager. The initial family stabilization plan must be completed within 
89.19 	30 days of the first meeting with the case manager. The case manager shall establish a 
89.20 	schedule for periodic review of the family stabilization plan that includes personal contact 
89.21 	with the participant at least once per month. In addition, the case manager shall review 
89.22 	and, if necessary, modify the plan under the following circumstances:
89.23 	(1) there is a lack of satisfactory progress in achieving the goals of the plan;
89.24 	(2) the participant has lost unsubsidized or subsidized employment;
89.25 	(3) a family member has failed or is unable to comply with a family stabilization 
89.26 	plan requirement;
89.27 	(4) services, supports, or other activities required by the plan are unavailable;
89.28 	(5) changes to the plan are needed to promote the well-being of the children; or
89.29 	(6) the participant and case manager determine that the plan is no longer appropriate 
89.30 	for any other reason.
89.31 		Subd. 6.Cooperation with services requirements. (a) To be eligible, a participant 
89.32 	shall comply with paragraphs (b) to (d).
89.33 	(b) Participants shall engage in family stabilization plan services for the appropriate 
89.34 	number of hours per week that the activities are scheduled and available, unless good 
89.35 	cause exists for not doing so, as defined in section 256J.57, subdivision 1. The appropriate 
89.36 	number of hours must be based on the participant's plan.
90.1 	(c) The case manager shall review the participant's progress toward the goals in the 
90.2 	family stabilization plan every six months to determine whether conditions have changed, 
90.3 	including whether revisions to the plan are needed.
90.4 	(d) A participant's requirement to comply with any or all family stabilization plan 
90.5 	requirements under this subdivision is excused when the case management services, 
90.6 	training and educational services, or family support services identified in the participant's 
90.7 	family stabilization plan are unavailable for reasons beyond the control of the participant, 
90.8 	including when money appropriated is not sufficient to provide the services.
90.9 		Subd. 7.Sanctions. (a) The financial assistance grant of a participating family is 
90.10 	reduced according to section 256J.46, if a participating adult fails without good cause to 
90.11 	comply or continue to comply with the family stabilization plan requirements in this 
90.12 	subdivision, unless compliance has been excused under subdivision 6, paragraph (e).
90.13 	(b) Given the purpose of the family stabilization services  in this section and the 
90.14 	nature of the underlying family circumstances that act as barriers to both employment and 
90.15 	full compliance with program requirements, there must be a review by the county agency 
90.16 	prior to imposing a sanction to determine whether the plan was appropriated to the needs 
90.17 	of the participant and family, and that the participant in all ways had the ability to comply 
90.18 	with the plan, as confirmed by a behavioral health or medical professional.
90.19 	(c) Prior to the imposition of a sanction, the county agency or employment services 
90.20 	provider shall review the participant's case to determine if the family stabilization plan 
90.21 	is still appropriate and meet with the participant face-to-face. The participant may bring 
90.22 	an advocate to the face-to-face meeting. 
90.23 	During the face-to-face meeting, the county agency shall:
90.24 	(1) determine whether the continued noncompliance can be explained and mitigated 
90.25 	by providing a needed family stabilization service, as defined in subdivision 2, paragraph 
90.26 	(d);
90.27 	(2) determine whether the participant qualifies for a good cause exception under 
90.28 	section 256J.57, or if the sanction is for noncooperation with child support requirements, 
90.29 	determine if the participant qualifies for a good cause exemption under section 256.741, 
90.30 	subdivision 10;
90.31 	(3) determine whether activities in the family stabilization plan are appropriate 
90.32 	based on the family's circumstances;
90.33 	(4) explain the consequences of continuing noncompliance;
90.34 	(5) identify other resources that may be available to the participant to meet the 
90.35 	needs of the family; and
90.36 	(6) inform the participant of the right to appeal under section 256J.40.
91.1 	If the lack of an identified activity or service can explain the noncompliance, the 
91.2 	county shall work with the participant to provide the identified activity.
91.3 	(d) If the participant fails to come to the face-to-face meeting, the case manager or a 
91.4 	designee shall attempt at least one home visit. If a face-to-face meeting is not conducted, 
91.5 	the county agency shall send the participant a written notice that includes the information 
91.6 	under paragraph (c).
91.7 	(e) After the requirements of paragraphs (c) and (d) are met and prior to imposition 
91.8 	of a sanction, the county agency shall provide a notice of intent to sanction under section 
91.9 	256J.57, subdivision 2, and, when applicable, a notice of adverse action under section 
91.10 	256J.31.
91.11 	(f) Section 256J.57 applies to this section except to the extent that it is modified 
91.12 	by this subdivision.
91.13 		Subd. 8.Funding. (a) The commissioner of human services shall treat MFIP 
91.14 	expenditures made to or on behalf of any minor child under this section, who is part of a 
91.15 	household that meets criteria in subdivision 3, as expenditures under a separately funded 
91.16 	state program. These expenditures shall not count toward the state's maintenance of effort 
91.17 	requirements under the federal TANF program.
91.18 	(b) A family is no longer part of a separately funded program under this section if 
91.19 	the caregiver no longer meets the criteria for family stabilization services in subdivision 3, 
91.20 	or if it is determined at recertification that a caregiver with a child under the age of six 
91.21 	is working at least 87 hours per month in paid or unpaid employment, or a caregiver 
91.22 	without a child under the age of six is working at least 130 hours per month in paid or 
91.23 	unpaid employment, whichever occurs sooner.

91.24 	EFFECTIVE DATE. This section is effective February 1, 2008.

91.25 	Sec. 38. [256J.621] WORK PARTICIPATION BONUS.
91.26 	(a) Upon exiting the diversionary work program (DWP) or upon terminating 
91.27 	MFIP cash assistance with earnings, a participant who is employed may be eligible for 
91.28 	transitional assistance of $75 per month to assist in meeting the family's basic needs as 
91.29 	the participant continues to move toward self-sufficiency.
91.30 	(b) To be eligible for a transitional assistance payment, the participant shall not 
91.31 	receive MFIP cash assistance or diversionary work program assistance during the month 
91.32 	and the participant or participants must meet the following work requirements:
91.33 	(1) if the participant is a single caregiver and has a child under six years of age, the 
91.34 	participant must be employed at least 87 hours per month;
92.1 	(2) if the participant is a single caregiver and does not have a child under six years of 
92.2 	age, the participant must be employed at least 130 hours per month; or
92.3 	(3) if the household is a two-parent family, at least one of the parents must be 
92.4 	employed an average of at least 130 hours per month.
92.5 	Whenever a participant exits the diversionary work program or is terminated from 
92.6 	MFIP cash assistance and meets the other criteria in this section, transitional assistance is 
92.7 	available for up to 24 consecutive months.
92.8 	(c) Expenditures on the program are maintenance of effort state funds for participants 
92.9 	under paragraph (b), clauses (1) and (2). Expenditures for participants under paragraph 
92.10 	(b), clause (3), are nonmaintenance of effort funds. Months in which a participant 
92.11 	receives transitional assistance under this section do not count toward the participant's 
92.12 	MFIP 60-month time limit.

92.13 	EFFECTIVE DATE. This section is effective February 1, 2009.

92.14 	Sec. 39. Minnesota Statutes 2006, section 256J.626, subdivision 1, is amended to read:
92.15 		Subdivision 1.Consolidated fund. The consolidated fund is established to support 
92.16 	counties and tribes in meeting their duties under this chapter. Counties and tribes must use 
92.17 	funds from the consolidated fund to develop programs and services that are designed to 
92.18 	improve participant outcomes as measured in section 256J.751, subdivision 2. Counties 
92.19 	may use the funds for any allowable expenditures under subdivision 2, including case 
92.20 	management. Tribes may use the funds for any allowable expenditures under subdivision 
92.21 	2, including case management, except those in subdivision 2, paragraph (a), clauses (1) 
92.22 	and (6). 

92.23 	Sec. 40. Minnesota Statutes 2006, section 256J.626, subdivision 2, is amended to read:
92.24 		Subd. 2.Allowable expenditures. (a) The commissioner must restrict expenditures 
92.25 	under the consolidated fund to benefits and services allowed under title IV-A of the federal 
92.26 	Social Security Act. Allowable expenditures under the consolidated fund may include, but 
92.27 	are not limited to:
92.28 	(1) short-term, nonrecurring shelter and utility needs that are excluded from the 
92.29 	definition of assistance under Code of Federal Regulations, title 45, section 260.31, for 
92.30 	families who meet the residency requirement in section 256J.12, subdivisions 1 and 1a. 
92.31 	Payments under this subdivision are not considered TANF cash assistance and are not 
92.32 	counted towards the 60-month time limit; 
92.33 	(2) transportation needed to obtain or retain employment or to participate in other 
92.34 	approved work activities or activities under a family stabilization plan;
93.1 	(3) direct and administrative costs of staff to deliver employment services for 
93.2 	MFIP or,  the diversionary work program, or family stabilization services;  to administer 
93.3 	financial assistance,;  and to provide specialized services intended to assist hard-to-employ 
93.4 	participants to transition to work or transition from family stabilization services to MFIP;
93.5 	(4) costs of education and training including functional work literacy and English as 
93.6 	a second language;
93.7 	(5) cost of work supports including tools, clothing, boots, telephone service, and 
93.8 	other work-related expenses;
93.9 	(6) county administrative expenses as defined in Code of Federal Regulations, title 
93.10 	45, section 260(b);
93.11 	(7) services to parenting and pregnant teens;
93.12 	(8) supported work;
93.13 	(9) wage subsidies;
93.14 	(10) child care needed for MFIP or, the  diversionary work program, or family 
93.15 	stabilization services  participants to participate in social services;
93.16 	(11) child care to ensure that families leaving MFIP or diversionary work program 
93.17 	will continue to receive child care assistance from the time the family no longer qualifies 
93.18 	for transition year child care until an opening occurs under the basic sliding fee child 
93.19 	care program; and
93.20 	(12) services to help noncustodial parents who live in Minnesota and have minor 
93.21 	children receiving MFIP or DWP assistance, but do not live in the same household as the 
93.22 	child, obtain or retain employment; and
93.23 	(13) services to help families participating in family stabilization services achieve 
93.24 	the greatest possible degree of self-sufficiency.
93.25 	(b) Administrative costs that are not matched with county funds as provided in 
93.26 	subdivision 8 may not exceed 7.5 percent of a county's or 15 percent of a tribe's allocation 
93.27 	under this section. The commissioner shall define administrative costs for purposes of 
93.28 	this subdivision.
93.29 	(c) The commissioner may waive the cap on administrative costs for a county or tribe 
93.30 	that elects to provide an approved supported employment, unpaid work, or community 
93.31 	work experience program for a major segment of the county's or tribe's MFIP population. 
93.32 	The county or tribe must apply for the waiver on forms provided by the commissioner. In 
93.33 	no case shall total administrative costs exceed the TANF limits.

93.34 	Sec. 41. Minnesota Statutes 2006, section 256J.626, subdivision 3, is amended to read:
94.1 		Subd. 3.Eligibility for services. Families with a minor child, a pregnant woman, 
94.2 	or a noncustodial parent of a minor child receiving assistance, with incomes below 200 
94.3 	percent of the federal poverty guideline for a family of the applicable size, are eligible 
94.4 	for services funded under the consolidated fund. Counties and tribes must give priority 
94.5 	to families currently receiving MFIP or, the  diversionary work program, or family 
94.6 	stabilization services, and families at risk of receiving MFIP or diversionary work program.

94.7 	Sec. 42. Minnesota Statutes 2006, section 256J.626, subdivision 4, is amended to read:
94.8 		Subd. 4.County and tribal biennial service agreements. (a) Effective January 1, 
94.9 	2004, and each two-year period thereafter, each county and tribe must have in place an 
94.10 	approved biennial service agreement related to the services and programs in this chapter. 
94.11 	In counties with a city of the first class with a population over 300,000, the county must 
94.12 	consider a service agreement that includes a jointly developed plan for the delivery of 
94.13 	employment services with the city. Counties may collaborate to develop multicounty, 
94.14 	multitribal, or regional service agreements.
94.15 	(b) The service agreements will be completed in a form prescribed by the 
94.16 	commissioner. The agreement must include:
94.17 	(1) a statement of the needs of the service population and strengths and resources 
94.18 	in the community;
94.19 	(2) numerical goals for participant outcomes measures to be accomplished during 
94.20 	the biennial period. The commissioner may identify outcomes from section 256J.751, 
94.21 	subdivision 2, as core outcomes for all counties and tribes; 
94.22 	(3) strategies the county or tribe will pursue to achieve the outcome targets. 
94.23 	Strategies must include specification of how funds under this section will be used and may 
94.24 	include community partnerships that will be established or strengthened; and
94.25 	(4) strategies the county or tribe will pursue under family stabilization services ; and 
94.26 	(5) other items prescribed by the commissioner in consultation with counties and 
94.27 	tribes.
94.28 	(c) The commissioner shall provide each county and tribe with information needed 
94.29 	to complete an agreement, including: (1) information on MFIP cases in the county or 
94.30 	tribe; (2) comparisons with the rest of the state; (3) baseline performance on outcome 
94.31 	measures; and (4) promising program practices.
94.32 	(d) The service agreement must be submitted to the commissioner by October 15, 
94.33 	2003, and October 15 of each second year thereafter. The county or tribe must allow 
94.34 	a period of not less than 30 days prior to the submission of the agreement to solicit 
94.35 	comments from the public on the contents of the agreement.
95.1 	(e) The commissioner must, within 60 days of receiving each county or tribal service 
95.2 	agreement, inform the county or tribe if the service agreement is approved. If the service 
95.3 	agreement is not approved, the commissioner must inform the county or tribe of any 
95.4 	revisions needed prior to approval.
95.5 	(f) The service agreement in this subdivision supersedes the plan requirements 
95.6 	of section 116L.88. 

95.7 	Sec. 43. Minnesota Statutes 2006, section 256J.626, subdivision 5, is amended to read:
95.8 		Subd. 5.Innovation projects. Beginning January 1, 2005, no more than $3,000,000 
95.9 	of the funds annually appropriated to the commissioner for use in the consolidated fund 
95.10 	shall be available to the commissioner for projects testing innovative approaches to 
95.11 	improving outcomes for MFIP participants, family stabilization services  participants, and 
95.12 	persons at risk of receiving MFIP as detailed in subdivision 3. Projects shall be targeted to 
95.13 	geographic areas with poor outcomes as specified in section 256J.751, subdivision 5, or to 
95.14 	subgroups within the MFIP case load who are experiencing poor outcomes.

95.15 	Sec. 44. Minnesota Statutes 2006, section 256J.626, subdivision 6, is amended to read:
95.16 		Subd. 6.Base allocation to counties and tribes; definitions. (a) For purposes of 
95.17 	this section, the following terms have the meanings given.
95.18 	(1) "2002 historic spending base" means the commissioner's determination of 
95.19 	the sum of the reimbursement related to fiscal year 2002 of county or tribal agency 
95.20 	expenditures for the base programs listed in clause (6), items (i) through (iv), and earnings 
95.21 	related to calendar year 2002 in the base program listed in clause (6), item (v), and the 
95.22 	amount of spending in fiscal year 2002 in the base program listed in clause (6), item (vi), 
95.23 	issued to or on behalf of persons residing in the county or tribal service delivery area.
95.24 	(2) "Adjusted caseload factor" means a factor weighted:
95.25 	(i) 47 percent on the MFIP cases in each county at four points in time in the most 
95.26 	recent 12-month period for which data is available multiplied by the county's caseload 
95.27 	difficulty factor; and
95.28 	(ii) 53 percent on the count of adults on MFIP in each county and tribe at four points 
95.29 	in time in the most recent 12-month period for which data is available multiplied by the 
95.30 	county or tribe's caseload difficulty factor.
95.31 	(3) "Caseload difficulty factor" means a factor determined by the commissioner for 
95.32 	each county and tribe based upon the self-support index described in section 256J.751, 
95.33 	subdivision 2, clause (7)(6).
96.1 	(4) "Initial allocation" means the amount potentially available to each county or tribe 
96.2 	based on the formula in paragraphs (b) through (h) (d).
96.3 	(5) "Final allocation" means the amount available to each county or tribe based on 
96.4 	the formula in paragraphs (b) through (h) (d), after adjustment by subdivision 7.
96.5 	(6) "Base programs" means the:
96.6 	(i) MFIP employment and training services under Minnesota Statutes 2002, section 
96.7 	256J.62, subdivision 1, in effect June 30, 2002;
96.8 	(ii) bilingual employment and training services to refugees under Minnesota Statutes 
96.9 	2002, section 256J.62, subdivision 6, in effect June 30, 2002;
96.10 	(iii) work literacy language programs under Minnesota Statutes 2002, section 
96.11 	256J.62, subdivision 7, in effect June 30, 2002;
96.12 	(iv) supported work program authorized in Laws 2001, First Special Session chapter 
96.13 	9, article 17, section 2, in effect June 30, 2002;
96.14 	(v) administrative aid program under section 256J.76 in effect December 31, 2002; 
96.15 	and
96.16 	(vi) emergency assistance program under Minnesota Statutes 2002, section 256J.48, 
96.17 	in effect June 30, 2002.
96.18 	(b) The commissioner shall:
96.19 	(1) beginning July 1, 2003, determine the initial allocation of funds available under 
96.20 	this section according to clause (2);
96.21 	(2) allocate all of the funds available for the period beginning July 1, 2003, and 
96.22 	ending December 31, 2004, to each county or tribe in proportion to the county's or tribe's 
96.23 	share of the statewide 2002 historic spending base;
96.24 	(3) determine for calendar year 2005 the initial allocation of funds to be made 
96.25 	available under this section in proportion to the county or tribe's initial allocation for the 
96.26 	period of July 1, 2003, to December 31, 2004;
96.27 	(4) determine for calendar year 2006 the initial allocation of funds to be made 
96.28 	available under this section based 90 percent on the proportion of the county or tribe's 
96.29 	share of the statewide 2002 historic spending base and ten percent on the proportion of 
96.30 	the county or tribe's share of the adjusted caseload factor;
96.31 	(5) determine for calendar year 2007 the initial allocation of funds to be made 
96.32 	available under this section based 70 percent on the proportion of the county or tribe's 
96.33 	share of the statewide 2002 historic spending base and 30 percent on the proportion of the 
96.34 	county or tribe's share of the adjusted caseload factor; and
96.35 	(6) determine for calendar year 2008 and subsequent years the initial allocation of 
96.36 	funds to be made available under this section based 50 percent on the proportion of the 
97.1 	county or tribe's share of the statewide 2002 historic spending base and 50 percent on the 
97.2 	proportion of the county or tribe's share of the adjusted caseload factor.
97.3 	(c) With the commencement of a new or expanded tribal TANF program or an 
97.4 	agreement under section 256.01, subdivision 2, paragraph (g), in which some or all of 
97.5 	the responsibilities of particular counties under this section are transferred to a tribe, 
97.6 	the commissioner shall:
97.7 	(1) in the case where all responsibilities under this section are transferred to a tribal 
97.8 	program, determine the percentage of the county's current caseload that is transferring to a 
97.9 	tribal program and adjust the affected county's allocation accordingly; and
97.10 	(2) in the case where a portion of the responsibilities under this section are 
97.11 	transferred to a tribal program, the commissioner shall consult with the affected county or 
97.12 	counties to determine an appropriate adjustment to the allocation.
97.13 	(d) Effective January 1, 2005, counties and tribes will have their final allocations 
97.14 	adjusted based on the performance provisions of subdivision 7.

97.15 	Sec. 45. Minnesota Statutes 2006, section 256J.626, subdivision 7, is amended to read:
97.16 		Subd. 7.Performance base funds. (a) Beginning calendar year 2005 2008, each 
97.17 	county and tribe will be allocated 95 percent of their initial calendar year allocation. 
97.18 	Counties and tribes will be allocated additional funds based on performance as follows:
97.19 	(1) for calendar year 2005, a county or tribe that achieves a 30 percent rate or higher 
97.20 	on the MFIP participation rate under section 256J.751, subdivision 2, clause (8), as 
97.21 	averaged across the four quarterly measurements for the most recent year for which the 
97.22 	measurements are available, will receive an additional allocation equal to 2.5 percent of 
97.23 	its initial allocation; and
97.24 	(2) for calendar year 2006, a county or tribe that achieves a 40 percent rate or a 
97.25 	five percentage point improvement over the previous year's MFIP participation rate 
97.26 	under section 256J.751, subdivision 2, clause (8), as averaged across the four quarterly 
97.27 	measurements for the most recent year for which the measurements are available, will 
97.28 	receive an additional allocation equal to 2.5 percent of its initial allocation; and
97.29 	(3) for calendar year 2007, a county or tribe that achieves a 50 percent rate or a 
97.30 	five percentage point improvement over the previous year's MFIP participation rate 
97.31 	under section 256J.751, subdivision 2, clause (8), as averaged across the four quarterly 
97.32 	measurements for the most recent year for which the measurements are available, will 
97.33 	receive an additional allocation equal to 2.5 percent of its initial allocation; and
97.34 	(4) for calendar year 2008 and yearly thereafter, a county or tribe that achieves a 50 
97.35 	percent MFIP participation rate or a five percentage point improvement over the previous 
98.1 	year's MFIP participation rate under section 256J.751, subdivision 2, clause (8) (7), as 
98.2 	averaged across the four quarterly measurements for the most recent year for which the 
98.3 	measurements are available, will receive an additional allocation equal to 2.5 percent of 
98.4 	its initial allocation; and
98.5 	(5) (2)  for calendar years 2005 and thereafter, a county or tribe that performs above 
98.6 	the top of its annualized range of expected performance on the three-year self-support 
98.7 	index under section 256J.751, subdivision 2, clause (7) (6), will receive an additional 
98.8 	allocation equal to five percent of its initial allocation; or and 
98.9 	(6) (3)  for calendar years 2005 and thereafter, a county or tribe that performs within 
98.10 	its range of expected performance on the annualized three-year self-support index under 
98.11 	section 256J.751, subdivision 2, clause (7) (6), will receive an additional allocation equal 
98.12 	to 2.5 percent of its initial allocation; and
98.13 	(4) for calendar years 2008 and thereafter, a county or tribe that does not achieve 
98.14 	a 50 percent MFIP participation rate or a five percentage point improvement over the 
98.15 	previous year's MFIP participation rate under section 256J.751, subdivision 2, clause (7), 
98.16 	as averaged across the four quarterly measurements for the most recent year for which 
98.17 	the measurements are available, will not receive an additional 2.5 percent of its initial 
98.18 	allocation until after negotiating a multiyear improvement plan with the commissioner; or 
98.19 	(5) for calendar years 2008 and thereafter, a county or tribe that does not perform 
98.20 	within its range of expected performance on the annualized three-year self-support index 
98.21 	under section 256J.751, subdivision 2, clause (6), will not receive an additional allocation 
98.22 	equal to 2.5 percent of its initial allocation until after negotiating a multiyear improvement 
98.23 	plan with the commissioner.
98.24 	(b) Performance-based funds for a federally approved tribal TANF program in which 
98.25 	the state and tribe have in place a contract under section 256.01, addressing consolidated 
98.26 	funding, will be allocated as follows:
98.27 	(1) for calendar year 2006 and yearly thereafter, a tribe that achieves the participation 
98.28 	rate approved in its federal TANF plan using the average of four quarterly measurements 
98.29 	for the most recent year for which the measurements are available, will receive an 
98.30 	additional allocation equal to 2.5 percent of its initial allocation; and
98.31 	(2) for calendar years 2006 and thereafter, a tribe that performs above the top of its 
98.32 	annualized range of expected performance on the three-year self-support index under 
98.33 	section 256J.751, subdivision 2, clause (7) (6), will receive an additional allocation equal 
98.34 	to five percent of its initial allocation; or
98.35 	(3) for calendar years 2006 and thereafter, a tribe that performs within its range 
98.36 	of expected performance on the annualized three-year self-support index under section 
99.1 	256J.751, subdivision 2, clause (7) (6), will receive an additional allocation equal to 2.5 
99.2 	percent of its initial allocation; or 
99.3 	(4) for calendar year 2008 and yearly thereafter, a tribe that does not achieve the 
99.4 	participation rate approved in its federal TANF plan using the average of four quarterly 
99.5 	measurements for the most recent year for which the measurements are available, will 
99.6 	not receive an additional allocation equal to 2.5 percent of its initial allocation until after 
99.7 	negotiating a multiyear improvement plan with the commissioner; or 
99.8 	(5) for calendar year 2008 and yearly thereafter, a tribe that does not perform within 
99.9 	its range of expected performance on the annualized three-year self-support index under 
99.10 	section 256J.751, subdivision 2, clause (6), will not receive an additional allocation equal 
99.11 	to 2.5 percent until after negotiating a multiyear improvement plan with the commissioner.
99.12 	(c) Funds remaining unallocated after the performance-based allocations in 
99.13 	paragraph (a) are available to the commissioner for innovation projects under subdivision 
99.14 	5.
99.15 	(d)(1) If available funds are insufficient to meet county and tribal allocations 
99.16 	under paragraph (a), the commissioner may make available for allocation funds that are 
99.17 	unobligated and available from the innovation projects through the end of the current 
99.18 	biennium.
99.19 	(2) If after the application of clause (1) funds remain insufficient to meet county and 
99.20 	tribal allocations under paragraph (a), the commissioner must proportionally reduce the 
99.21 	allocation of each county and tribe with respect to their maximum allocation available 
99.22 	under paragraph (a).

99.23 	Sec. 46. Minnesota Statutes 2006, section 256J.751, subdivision 2, is amended to read:
99.24 		Subd. 2.Quarterly comparison report. The commissioner shall report quarterly to 
99.25 	all counties on each county's performance on the following measures:
99.26 	(1) percent of MFIP caseload working in paid employment;
99.27 	(2) percent of MFIP caseload receiving only the food portion of assistance;
99.28 	(3) number of MFIP cases that have left assistance;
99.29 	(4) median placement wage rate;
99.30 	(5) caseload by months of TANF assistance;
99.31 	(6) percent of MFIP and diversionary work program (DWP) cases off cash assistance 
99.32 	or working 30 or more hours per week at one-year, two-year, and three-year follow-up 
99.33 	points from a baseline quarter. This measure is called the self-support index. The 
99.34 	commissioner shall report quarterly an expected range of performance for each county, 
99.35 	county grouping, and tribe on the self-support index. The expected range shall be derived 
100.1 	by a statistical methodology developed by the commissioner in consultation with the 
100.2 	counties and tribes. The statistical methodology shall control differences across counties 
100.3 	in economic conditions and demographics of the MFIP and DWP case load; and
100.4 	(7) the MFIP TANF work participation rate, defined as the participation requirements 
100.5 	specified in title 1 of Public Law 104-193 applied to all MFIP cases except child only 
100.6 	cases under Public Law 109-171, the Deficit Reduction Act of 2005.

100.7 	Sec. 47. Minnesota Statutes 2006, section 256J.751, subdivision 5, is amended to read:
100.8 		Subd. 5.Failure to meet federal performance standards. (a) If sanctions occur 
100.9 	for failure to meet the performance standards specified in title 1 of Public Law 104-193 
100.10 	of the Personal Responsibility and Work Opportunity Act of 1996, and under Public 
100.11 	Law 109-171, the Deficit Reduction Act of 2005, the state shall pay 88 percent of the 
100.12 	sanction. The remaining 12 percent of the sanction will be paid by the counties. The 
100.13 	county portion of the sanction will be distributed across all counties in proportion to each 
100.14 	county's percentage of the MFIP average monthly caseload during the period for which 
100.15 	the sanction was applied.
100.16 	(b) If a county fails to meet the performance standards specified in title 1 of Public 
100.17 	Law 104-193 of the Personal Responsibility and Work Opportunity Act of 1996, and 
100.18 	Public Law 109-171, the Deficit Reduction Act of 2005, for any year, the commissioner 
100.19 	shall work with counties to organize a joint state-county technical assistance team to work 
100.20 	with the county. The commissioner shall coordinate any technical assistance with other 
100.21 	departments and agencies including the Departments of Employment and Economic 
100.22 	Development and Education as necessary to achieve the purpose of this paragraph.
100.23 	(c) For state performance measures, a low-performing county is one that:
100.24 	(1) performs below the bottom of their expected range for the measure in subdivision 
100.25 	2, clause (7) (6), in an annualized measurement reported in October of each year; or
100.26 	(2) performs below 40 percent for the measure in subdivision 2, clause (8) (7), as 
100.27 	averaged across the four quarterly measurements for the year, or the ten counties with the 
100.28 	lowest rates if more than ten are below 40 percent.
100.29 	(d) Low-performing counties under paragraph (c) must engage in corrective action 
100.30 	planning as defined by the commissioner. The commissioner may coordinate technical 
100.31 	assistance as specified in paragraph (b) for low-performing counties under paragraph (c).

100.32 	Sec. 48. Minnesota Statutes 2006, section 256J.95, subdivision 3, is amended to read:
100.33 		Subd. 3.Eligibility for diversionary work program. (a) Except for the categories 
100.34 	of family units listed below, all family units who apply for cash benefits and who 
101.1 	meet MFIP eligibility as required in sections 256J.11 to 256J.15 are eligible and must 
101.2 	participate in the diversionary work program. Family units that are not eligible for the 
101.3 	diversionary work program include:
101.4 	(1) child only cases;
101.5 	(2) a single-parent family unit that includes a child under 12 weeks of age. A parent 
101.6 	is eligible for this exception once in a parent's lifetime and is not eligible if the parent 
101.7 	has already used the previously allowed child under age one exemption from MFIP 
101.8 	employment services;
101.9 	(3) a minor parent without a high school diploma or its equivalent;
101.10 	(4) an 18- or 19-year-old caregiver without a high school diploma or its equivalent 
101.11 	who chooses to have an employment plan with an education option;
101.12 	(5) a caregiver age 60 or over;
101.13 	(6) family units with a caregiver who received DWP benefits in the 12 months prior 
101.14 	to the month the family applied for DWP, except as provided in paragraph (c);
101.15 	(7) family units with a caregiver who received MFIP within the 12 months prior to 
101.16 	the month the family unit applied for DWP;
101.17 	(8) a family unit with a caregiver who received 60 or more months of TANF 
101.18 	assistance; and
101.19 	(9) a family unit with a caregiver who is disqualified from DWP or MFIP due to 
101.20 	fraud.; and
101.21 	(10) refugees as defined in Code of Federal Regulations, title 45, chapter IV, section 
101.22 	444.43, who arrived in the United States in the 12 months prior to the date of application 
101.23 	for family cash assistance.
101.24 	(b) A two-parent family must participate in DWP unless both caregivers meet the 
101.25 	criteria for an exception under paragraph (a), clauses (1) through (5), or the family unit 
101.26 	includes a parent who meets the criteria in paragraph (a), clause (6), (7), (8), or (9).
101.27 	(c) Once DWP eligibility is determined, the four months run consecutively. If a 
101.28 	participant leaves the program for any reason and reapplies during the four-month period, 
101.29 	the county must redetermine eligibility for DWP.

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

101.31 	Sec. 49. Minnesota Statutes 2006, section 256K.45, is amended by adding a 
101.32 	subdivision to read:
101.33 		Subd. 6.Funding. Any funds appropriated for this section may be expended on 
101.34 	programs described under subdivisions 3 to 5, technical assistance, and capacity building. 
101.35 	Up to four percent of funds appropriated may be used for the purpose of monitoring and 
102.1 	evaluating runaway and homeless youth programs receiving funding under this section. 
102.2 	Funding shall be directed to meet the greatest need, with a significant share of the funding 
102.3 	focused on homeless youth providers in greater Minnesota.

102.4 	Sec. 50. Minnesota Statutes 2006, section 259.67, subdivision 4, is amended to read:
102.5 		Subd. 4.Eligibility conditions. (a) The placing agency shall use the AFDC 
102.6 	requirements as specified in federal law as of July 16, 1996, when determining the child's 
102.7 	eligibility for adoption assistance under title IV-E of the Social Security Act. If the child 
102.8 	does not qualify, the placing agency shall certify a child as eligible for state funded 
102.9 	adoption assistance only if the following criteria are met:
102.10 	(1) Due to the child's characteristics or circumstances it would be difficult to provide 
102.11 	the child an adoptive home without adoption assistance.
102.12 	(2)(i) A placement agency has made reasonable efforts to place the child for adoption 
102.13 	without adoption assistance, but has been unsuccessful; or
102.14 	(ii) the child's licensed foster parents desire to adopt the child and it is determined by 
102.15 	the placing agency that the adoption is in the best interest of the child.
102.16 	(3)(i) The child has been a ward of the commissioner, a Minnesota-licensed 
102.17 	child-placing agency, or a tribal social service agency of Minnesota recognized by the 
102.18 	Secretary of the Interior; or (ii) the child will be adopted according to tribal law without a 
102.19 	termination of parental rights or relinquishment, provided that the tribe has documented 
102.20 	the valid reason why the child cannot or should not be returned to the home of the child's 
102.21 	parent. The placing agency shall not certify a child who remains under the jurisdiction 
102.22 	of the sending agency pursuant to section 260.851, article 5, for state-funded adoption 
102.23 	assistance when Minnesota is the receiving state.
102.24 	(b) For purposes of this subdivision, the characteristics or circumstances that may 
102.25 	be considered in determining whether a child is a child with special needs under United 
102.26 	States Code, title 42, chapter 7, subchapter IV, part E, or meets the requirements of 
102.27 	paragraph (a), clause (1), are the following:
102.28 	(1) The child is a member of a sibling group to be placed as one unit in which at 
102.29 	least one sibling is older than 15 months of age or is described in clause (2) or (3).
102.30 	(2) The child has documented physical, mental, emotional, or behavioral disabilities.
102.31 	(3) The child has a high risk of developing physical, mental, emotional, or behavioral 
102.32 	disabilities.
102.33 	(4) The child is adopted according to tribal law without a termination of parental 
102.34 	rights or relinquishment, provided that the tribe has documented the valid reason why the 
102.35 	child cannot or should not be returned to the home of the child's parent.
103.1 	(4) The child is five years of age or older.
103.2 	(c) When a child's eligibility for adoption assistance is based upon the high risk of 
103.3 	developing physical, mental, emotional, or behavioral disabilities, payments shall not be 
103.4 	made under the adoption assistance agreement unless and until the potential disability 
103.5 	manifests itself as documented by an appropriate health care professional.

103.6 	Sec. 51. Minnesota Statutes 2006, section 270B.14, subdivision 1, is amended to read:
103.7 		Subdivision 1.Disclosure to commissioner of human services. (a) On the request 
103.8 	of the commissioner of human services, the commissioner shall disclose return information 
103.9 	regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to 
103.10 	the extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
103.11 	(b) Data that may be disclosed are limited to data relating to the identity, 
103.12 	whereabouts, employment, income, and property of a person owing or alleged to be owing 
103.13 	an obligation of child support.
103.14 	(c) The commissioner of human services may request data only for the purposes of 
103.15 	carrying out the child support enforcement program and to assist in the location of parents 
103.16 	who have, or appear to have, deserted their children. Data received may be used only 
103.17 	as set forth in section 256.978. 
103.18 	(d) The commissioner shall provide the records and information necessary to 
103.19 	administer the supplemental housing allowance to the commissioner of human services.
103.20 	(e) At the request of the commissioner of human services, the commissioner of 
103.21 	revenue shall electronically match the Social Security numbers and names of participants 
103.22 	in the telephone assistance plan operated under sections 237.69 to 237.711, with those of 
103.23 	property tax refund filers, and determine whether each participant's household income is 
103.24 	within the eligibility standards for the telephone assistance plan. 
103.25 	(f) The commissioner may provide records and information collected under sections 
103.26 	295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid 
103.27 	Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law 
103.28 	102-234. Upon the written agreement by the United States Department of Health and 
103.29 	Human Services to maintain the confidentiality of the data, the commissioner may provide 
103.30 	records and information collected under sections 295.50 to 295.59 to the Centers for 
103.31 	Medicare and Medicaid Services section of the United States Department of Health and 
103.32 	Human Services for purposes of meeting federal reporting requirements. 
103.33 	(g) The commissioner may provide records and information to the commissioner of 
103.34 	human services as necessary to administer the early refund of refundable tax credits.
104.1 	(h) The commissioner may disclose information to the commissioner of human 
104.2 	services necessary to verify income for eligibility and premium payment under the 
104.3 	MinnesotaCare program, under section 256L.05, subdivision 2. 
104.4 	(i) The commissioner may disclose information to the commissioner of human 
104.5 	services necessary to verify whether applicants or recipients for the Minnesota family 
104.6 	investment program, general assistance, food support, and Minnesota supplemental aid 
104.7 	program, and child care assistance have claimed refundable tax credits under chapter 290 
104.8 	and the property tax refund under chapter 290A, and the amounts of the credits.

104.9 	Sec. 52. MFIP PILOT PROGRAM; WORKFORCE U.
 104.10 		Subdivision 1.Establishment. A pilot program is established in Stearns and 
104.11 	Benton Counties to expand the Workforce U program administered by the Stearns-Benton 
104.12 	Employment and Training Council.
104.13 		Subd. 2.Evaluation. The Workforce U pilot program must be evaluated by a 
104.14 	research and evaluation organization with experience evaluating welfare programs. The 
104.15 	evaluation must include information on the total number of persons served, percentage 
104.16 	of participants exiting the program, percentage of former participants reentering the 
104.17 	program, average wages of program participants, and recommendations to the legislature 
104.18 	for possible statewide implementation of the program. The evaluation must be presented 
104.19 	to the legislature by February 15, 2011.
104.20 		Subd. 3.Expiration. The Workforce U pilot program expires on June 30, 2011.

104.21 	Sec. 53. LEECH LAKE YOUTH TREATMENT CENTER PROPOSAL.
 104.22 	(a) The commissioner of human services shall provide a planning grant to address 
104.23 	the unmet need for local, effective, culturally relevant alcohol and drug treatment for 
104.24 	American Indian youth, and develop a plan for a family-based youth treatment center in 
104.25 	the Leech Lake area. The planning grant must be provided to a volunteer board consisting 
104.26 	of at least four members appointed by the commissioner, to include at least the following:
104.27 	(1) two members of the Leech Lake Tribal Council or their designees;
104.28 	(2) one member appointed by the Cass County Social Services administrator; and
104.29 	(3) one member appointed by the Cass Lake-Bena Public School superintendent.
104.30 	(b) The plan must include:
104.31 	(1) an interest, feasibility, and suitability of location study;
104.32 	(2) defining scope of programs and services to be offered;
104.33 	(3) defining site use limitations and restrictions, including physical and capacity;
104.34 	(4) defining facilities required for programs and services offered;
105.1 	(5) identifying partners, partnership roles, and partner resources;
105.2 	(6) developing proposed operating and maintenance budgets;
105.3 	(7) identifying funding sources;
105.4 	(8) developing a long-term funding plan; and
105.5 	(9) developing a formal steering committee, structure, and bylaws.
105.6 	(c) The plan is due to the legislative committees having jurisdiction over chemical 
105.7 	health issues no later than September 2008 in order to provide the 12 months necessary to 
105.8 	complete the plan.

105.9 	Sec. 54. MINNESOTA FOOD SUPPORT PROGRAM SIMPLIFIED 
105.10 	APPLICATION.
 105.11 	The commissioner of human services shall implement a simplified application form 
105.12 	and process for the food support program by January 1, 2008. The commissioner shall 
105.13 	consult with counties and representatives of persons served by the program to develop the 
105.14 	simplified application form and process. The application process shall:
105.15 	(1) include a simple, short form that can be completed by individuals with limited 
105.16 	literacy skills;
105.17 	(2) include an application form for individuals without dependents;
105.18 	(3) include a process that does not require individuals to take time off work for a 
105.19 	face-to-face interview; and
105.20 	(4) minimize demands on county staff in assisting applicants.

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

105.22 	Sec. 55. INSPECTION OF LEGAL UNLICENSED CHILD CARE PROVIDERS.
 105.23 	The commissioner of human services, in consultation with the commissioner of 
105.24 	health and the counties, shall develop and present recommendations to the legislature in 
105.25 	January 2008 in order for each legally unlicensed child care provider receiving child 
105.26 	care assistance funds to receive a onetime home visit to receive information on health 
105.27 	and safety, and school readiness.

105.28 	Sec. 56. COMMISSIONER OF HUMAN SERVICES DUTIES; EARLY 
105.29 	CHILDHOOD AND SCHOOL-AGE PROFESSIONAL DEVELOPMENT 
105.30 	TRAINING.
 105.31 		Subdivision 1.Development and implementation of an early childhood and 
105.32 	school-age professional development system. (a) The commissioner of human services, 
105.33 	in cooperation with the commissioners of education and health, shall develop and phase-in 
106.1 	the implementation of a professional development system for practitioners serving 
106.2 	children in early childhood and school-age programs. The system shall provide training 
106.3 	options and supports for practitioners to voluntarily choose, as they complete or exceed 
106.4 	existing licensing requirements.
106.5 	The system must, at a minimum, include the following features:
106.6 	(1) a continuum of training content based on the early childhood and school-age 
106.7 	care practitioner core competencies that translates knowledge into improved practice to 
106.8 	support children's school success;
106.9 	(2) training strategies that provide direct feedback about practice to practitioners 
106.10 	through ongoing consultation, mentoring, or coaching with special emphasis on early 
106.11 	literacy and early mathematics;
106.12 	(3) an approval process for trainers;
106.13 	(4) a professional development registry for early childhood and school-age care 
106.14 	practitioners that will provide tracking and recognition of practitioner training/career 
106.15 	development progress;
106.16 	(5) a career lattice that includes a range of professional development and educational 
106.17 	opportunities that provide appropriate coursework and degree pathways;
106.18 	(6) development of a plan with public higher education institutions for an articulated 
106.19 	system of education, training, and professional development that includes credit for prior 
106.20 	learning and development of equivalences to two- and four-year degrees;
106.21 	(7) incentives and supports for early childhood and school-age care practitioners 
106.22 	to seek additional training and education, including TEACH, other scholarships, and 
106.23 	career guidance; and
106.24 	(8) coordinated and accessible delivery of training to early childhood and school-age 
106.25 	care practitioners.
106.26 	(b) By January 1, 2008, the commissioner, in consultation with the organizations 
106.27 	named in subdivision 2 shall develop additional opportunities in order to qualify more 
106.28 	licensed family child care providers under section 119B.13, subdivision 3a.
106.29 	(c) The commissioner of human services must evaluate the professional development 
106.30 	system and make continuous improvements.
106.31 	(d) Beginning July 1, 2007, as appropriations permit, the commissioner shall 
106.32 	phase-in the professional development system.
106.33 		Subd. 2.Two-hour early childhood training. By January 15, 2008, the 
106.34 	commissioner of human services, with input from the Minnesota Licensed Family Child 
106.35 	Care Association and the Minnesota Professional Development Council, shall identify 
106.36 	trainings that qualify for the two-hour early childhood development training requirement 
107.1 	for new child care practitioners under Minnesota Statutes, section 245A.14, subdivision 
107.2 	9a, paragraphs (a) and (b). For licensed family child care, the commissioner shall also 
107.3 	seek the input of labor unions that serve licensed family child care providers, if the union 
107.4 	has been recognized by a county to serve licensed family child care providers.

107.5 	Sec. 57. SCHOOL READINESS SERVICE AGREEMENTS.
 107.6 		Subdivision 1.Overview. (a) Effective July 1, 2007, funds must be made available 
107.7 	to allow the commissioner to pay higher rates to up to 50 child care providers who are 
107.8 	deemed by the commissioner to meet the requirements of a school readiness service 
107.9 	agreement (SRSA) provider and perform services that support school readiness for 
107.10 	children and economic stability for parents.
107.11 	(b) A provider may be paid a rate above that currently allowed under Minnesota 
107.12 	Statutes, section 119B.13, if:
107.13 	(1) the provider has entered into an SRSA with the commissioner; 
107.14 	(2) a family using that provider receives child care assistance under any provision in 
107.15 	Minnesota Statutes, chapter 119B, except Minnesota Statutes, section 119B.035; 
107.16 	(3) the family using that provider meets the criteria in this section; and 
107.17 	(4) funding is available under this section.
107.18 		Subd. 2.Provider eligibility. (a) To be considered for an SRSA, a provider shall 
107.19 	apply to the commissioner. To be eligible to apply for an SRSA, a provider shall:
107.20 	(1) be eligible for child care assistance payments under Minnesota Statutes, chapter 
107.21 	119B;
107.22 	(2) have at least 25 percent of the children enrolled with the provider subsidized 
107.23 	through the child care assistance program;
107.24 	(3) provide full-time, full-year child care services; and 
107.25 	(4) serve at least one child who is subsidized through the child care assistance 
107.26 	program and who is expected to enter kindergarten within the following 30 months.
107.27 	(b) The commissioner may waive the 25 percent requirement in paragraph (a), clause 
107.28 	(2), if necessary to achieve geographic distribution of SRSA providers and diversity of 
107.29 	types of care provided by SRSA providers.
107.30 	(c) An eligible provider who would like to enter into an SRSA with the commissioner 
107.31 	shall submit an SRSA application. To determine whether to enter into an SRSA with a 
107.32 	provider, the commissioner shall evaluate the following factors:
107.33 	(1) the qualifications of the provider and the provider's staff;
107.34 	(2) the provider's staff-child ratios;
107.35 	(3) the provider's curriculum;
108.1 	(4) the provider's current or planned parent education activities;
108.2 	(5) the provider's current or planned social service and employment linkages;
108.3 	(6) the provider's child development assessment plan;
108.4 	(7) the geographic distribution needed for SRSA providers;
108.5 	(8) the inclusion of a variety of child care delivery models; and 
108.6 	(9) other related factors determined by the commissioner.
108.7 		Subd. 3.Family and child eligibility. (a) A family eligible to choose an SRSA 
108.8 	provider for their children shall:
108.9 	(1) be eligible to receive child care assistance under any provision in Minnesota 
108.10 	Statutes, chapter 119B, except Minnesota Statutes, section 119B.035; 
108.11 	(2) be in an authorized activity for an average of at least 35 hours per week when 
108.12 	initial eligibility is determined; and 
108.13 	(3) include a child who has not yet entered kindergarten.
108.14 	(b) A family who is determined to be eligible to choose an SRSA provider remains 
108.15 	eligible to be paid at a higher rate through the SRSA provider when the following 
108.16 	conditions exist:
108.17 	(1) the child attends child care with the SRSA provider a minimum of 25 hours per 
108.18 	week, on average;
108.19 	(2) the family has a child who has not yet entered kindergarten; and 
108.20 	(3) the family maintains eligibility under Minnesota Statutes, chapter 119B, except 
108.21 	Minnesota Statutes, section 119B.035.
108.22 	(c) For the 12 months after initial eligibility has been determined, a decrease in 
108.23 	the family's authorized activities to an average of less than 35 hours per week does not 
108.24 	result in ineligibility for the SRSA rate.
108.25 	(d) A family that moves between counties but continues to use the same SRSA 
108.26 	provider shall continue to receive SRSA funding for the increased payments.
108.27 		Subd. 4.Requirements of providers. An SRSA must include assessment, 
108.28 	evaluation, and reporting requirements that promote the goals of improved school 
108.29 	readiness and movement toward appropriate child development milestones. A provider 
108.30 	who enters into an SRSA shall comply with the assessment, evaluation, and reporting 
108.31 	requirements in the SRSA.
108.32 		Subd. 5.Relationship to current law. (a) The following provisions in Minnesota 
108.33 	Statutes, chapter 119B, must be waived or modified for families receiving services under 
108.34 	this section.
108.35 	(b) Notwithstanding Minnesota Statutes, section 119B.13, subdivisions 1 and 1a, 
108.36 	maximum weekly rates under this section are 125 percent of the existing maximum 
109.1 	weekly rate for like-care. Providers eligible for a differential rate under Minnesota 
109.2 	Statutes, section 119B.13, subdivision 3a, remain eligible for the differential above the 
109.3 	rate identified in this section. Only care for children who have not yet entered kindergarten 
109.4 	may be paid at the maximum rate under this section. The provider's charge for service 
109.5 	provided through an SRSA may not exceed the rate that the provider charges a private-pay 
109.6 	family for like-care arrangements.
109.7 	(c) A family or child care provider may not be assessed an overpayment for care 
109.8 	provided through an SRSA unless: 
109.9 	(1) there was an error in the amount of care authorized for the family; or 
109.10 	(2) the family or provider did not timely report a change as required under the law.
109.11 	(d) Care provided through an SRSA is authorized on a weekly basis.
109.12 	(e) Funds appropriated under this section to serve families eligible under Minnesota 
109.13 	Statutes, section 119B.03, are not allocated through the basic sliding fee formula under 
109.14 	Minnesota Statutes, section 119B.03. Funds appropriated under this section are used to 
109.15 	offset increased costs when payments are made under SRSA's.
109.16 	(f) Notwithstanding Minnesota Statutes, section 119B.09, subdivision 6, the 
109.17 	maximum amount of child care assistance that may be authorized for a child receiving 
109.18 	care through an SRSA in a two-week period is 160 hours per child.
109.19 		Subd. 6.Establishment of service agreements. (a) The commissioner shall 
109.20 	approve SRSA's for up to 50 providers that represent diverse parts of the state and a 
109.21 	variety of child care delivery models. Entering into a service agreement does not guarantee 
109.22 	that a provider will receive payment at a higher rate for families receiving child care 
109.23 	assistance. A family eligible under this section shall choose a provider participating in an 
109.24 	SRSA in order for a higher rate to be paid. Payments through SRSA's are also limited by 
109.25 	the availability of SRSA funds.
109.26 	(b) Nothing in this section shall be construed to limit parent choice as defined in 
109.27 	Minnesota Statutes, section 119B.09, subdivision 5.
109.28 	(c) The commissioner may allow for startup time for some providers if failing to 
109.29 	do so would limit geographic diversity of SRSA providers or a variety of child care 
109.30 	delivery models.

109.31 	Sec. 58. FAMILY, FRIEND, AND NEIGHBOR GRANT PROGRAM.
 109.32 		Subdivision 1.Establishment. A family, friend, and neighbor (FFN) grant program 
109.33 	is established to promote children's early literacy, healthy development, and school 
109.34 	readiness, and to foster community partnerships to promote children's school readiness. 
109.35 	The commissioner shall attempt to ensure that grants are made in all areas of the state. The 
110.1 	commissioner of human services shall make grants available to fund: community-based 
110.2 	organizations, nonprofit organizations, and Indian tribes working with FFN caregivers 
110.3 	under subdivision 2, paragraph (a); and community-based partnerships to implement early 
110.4 	literacy programs under subdivision 2, paragraph (b).
110.5 		Subd. 2.Program components. (a)(1) Grants that the commissioner awards under 
110.6 	this section must be used by community-based organizations, nonprofit organizations, and 
110.7 	Indian tribes working with FFN caregivers in local communities, cultural communities, 
110.8 	and Indian tribes to:
110.9 	(i) provide training, support, and resources to FFN caregivers in order to improve 
110.10 	and promote children's health, safety, nutrition, and school readiness;
110.11 	(ii) connect FFN caregivers and children's families with appropriate community 
110.12 	resources that support the families' health, mental health, economic, and developmental 
110.13 	needs;
110.14 	(iii) connect FFN caregivers and children's families to early childhood screening 
110.15 	programs and facilitate referrals where appropriate;
110.16 	(iv) provide FFN caregivers and children's families with information about early 
110.17 	learning guidelines from the Departments of Human Services and Education;
110.18 	(v) provide FFN caregivers and children's families with information about becoming 
110.19 	a licensed family child care provider; and
110.20 	(vi) provide FFN caregivers and children's families with information about early 
110.21 	learning allowances and enrollment opportunities in high quality community-based 
110.22 	child-care and preschool programs.
110.23 	(2) Grants that the commissioner awards under this paragraph also may be used for:
110.24 	(i) health and safety and early learning kits for FFN caregivers;
110.25 	(ii) play-and-learn groups with FFN caregivers;
110.26 	(iii) culturally appropriate early childhood training for FFN caregivers;
110.27 	(iv) transportation for FFN caregivers and children's families to school readiness and 
110.28 	other early childhood training activities;
110.29 	(v) other activities that promote school readiness;
110.30 	(vi) data collection and evaluation;
110.31 	(vii) staff outreach and outreach activities;
110.32 	(viii) translation needs; or
110.33 	(ix) administrative costs that equal up to 12 percent of the recipient's grant award.
110.34 	(b) Grants that the commissioner awards under this section also must be used to fund 
110.35 	partnerships among Minnesota public and regional library systems, community-based 
111.1 	organizations, nonprofit organizations, and Indian tribes to implement early literacy 
111.2 	programs in low-income communities, including tribal communities, to:
111.3 	(1) purchase and equip early childhood read-mobiles that provide FFN caregivers 
111.4 	and children's families with books, training, and early literacy activities;
111.5 	(2) provide FFN caregivers and children's families with translations of early 
111.6 	childhood books, training, and early literacy activities in native languages; or
111.7 	(3) provide FFN caregivers and children's families with early literacy activities in 
111.8 	local libraries.
111.9 		Subd. 3.Grant awards. Interested entities eligible to receive a grant under 
111.10 	this section may apply to the commissioner in the form and manner the commissioner 
111.11 	determines. The commissioner shall awards grants to eligible entities consistent with 
111.12 	the requirements of this section.
111.13 		Subd. 4.Evaluation. The commissioner, in consultation with early childhood 
111.14 	care and education experts at the University of Minnesota, must evaluate the impact of 
111.15 	the grants under subdivision 2 on children's school readiness and submit a written report 
111.16 	to the human services and education finance and policy committees of the legislature by 
111.17 	February 15, 2010.

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

111.19 	Sec. 59. CHILD CARE PROVIDER STUDY.
 111.20 	If sufficient resources to support the costs are provided by one or more 
111.21 	nongovernmental entities, the commissioner of human services is directed to study the 
111.22 	implications of restricting the use of state subsidies in center-based child care to centers 
111.23 	meeting state quality standards under Minnesota Statutes, section 124D.175, paragraph 
111.24 	(c), and to publish the results no later than January 1, 2010. The study must include:
111.25 	(1) the likelihood of there being sufficient child care providers meeting the standards;
111.26 	(2) the cost to bring providers up to the standards and how this cost would be funded;
111.27 	(3) how the standards and the ratings would be communicated to both parents and 
111.28 	the general public; and
111.29 	(4) a determination whether a similar system could be implemented for 
111.30 	non-center-based care.

111.31 	Sec. 60. DIRECTION TO COMMISSIONER.
 111.32 	(a) The commissioner of human services shall offer a request for proposals to 
111.33 	identify a research and evaluation firm with experience working with:
111.34 	(1) homeless youth providers;
112.1 	(2) data; and
112.2 	(3) the topics of housing, homelessness, and a continuum of care for youth.
112.3 	(b) The research and evaluation firm identified under paragraph (a) shall monitor and 
112.4 	evaluate the programs receiving funding under Minnesota Statutes, section 256K.45.

112.5 	Sec. 61. NOT ASSESSING TANF PENALTIES AGAINST COUNTIES.
 112.6 	From October 2006 through October 2007, if the state does not meet the federal 
112.7 	work participation requirements, and the state is penalized by a reduction in the TANF 
112.8 	grant, the state shall not assess penalties against the counties.

112.9 	Sec. 62. PREKINDERGARTEN EXPLORATORY PROJECTS.
 112.10 		Subdivision 1.Early childhood allowance. The commissioners of human services 
112.11 	and education shall establish three prekindergarten exploratory projects to be conducted in 
112.12 	partnership with the Minnesota Early Learning Foundation to promote children's school 
112.13 	readiness. The exploratory projects shall be designed and evaluated by the Minnesota 
112.14 	Early Learning Foundation.
112.15 		Subd. 2.Family eligibility. Parents or legal guardians with incomes less than or 
112.16 	equal to 185 percent of the federal poverty guidelines are eligible to receive allowances to 
112.17 	pay for their children's education in a quality early education program, in an amount not 
112.18 	to exceed $4,000 per child per year. The allowance must be used during the 12 months 
112.19 	following receipt of the allowance by the claimant for a child who is age 3 or 4 on August 
112.20 	31, to pay for services designed to promote school readiness in a quality early education 
112.21 	setting. A quality program is one that meets the standards in subdivision 3. 
112.22 		Subd. 3.Quality standards. (a) A quality early care and education setting is any 
112.23 	service or program that receives a quality rating from the Department of Human Services 
112.24 	under the Minnesota Early Learning Foundation quality rating system administered by 
112.25 	the Department of Human Services and agrees to accept a prekindergarten education 
112.26 	allowance to pay for services. For fiscal years 2008 and 2009 only, a provider may satisfy 
112.27 	the quality rating system requirements and be deemed eligible to participate in this 
112.28 	program if the provider has received a provisional quality rating system approval from 
112.29 	either the Department of Human Services or the Department of Education.
112.30 	(b) For the purposes of receiving a provisional quality rating, a child care program or 
112.31 	provider must be approved by the commissioner of human services and a school readiness 
112.32 	program or a Head Start program must be approved by the commissioner of education. 
112.33 	Programs and providers must apply for approval in the form and manner prescribed by the 
112.34 	commissioners. To receive approval, the commissioners must determine that applicants:
113.1 	(1) use research-based curricula that are aligned with the education standards under 
113.2 	Minnesota Statutes, section 120B.021, instruction, and child assessment instruments 
113.3 	approved by the Department of Education and the Department of Human Services, in 
113.4 	consultation with the Minnesota Early Learning Foundation;
113.5 	(2) provide a program of sufficient intensity and duration to improve the school 
113.6 	readiness of participating children;
113.7 	(3) provide opportunities for parent involvement; and
113.8 	(4) meet other research-based criteria determined necessary by the commissioners.
113.9 	(c) For 2008 and 2009, notwithstanding paragraph (b), Head Start programs 
113.10 	meeting Head Start performance standards and accredited child care centers are granted 
113.11 	a provisional quality rating for the purposes of receiving a prekindergarten education 
113.12 	allowance under this statute.
113.13 	(d) A provider deemed eligible to receive a prekindergarten education allowance 
113.14 	under paragraphs (a) to (c) may use the allowance to enhance services above the current 
113.15 	quality levels, increase the duration of services provided, or expand the number of children 
113.16 	to whom services are provided.
113.17 	(e) For fiscal years 2008 and 2009 only, when no quality program is available, a 
113.18 	recipient may direct the prekindergarten education allowance to a provider or program for 
113.19 	school readiness quality improvements that will make the provider or program eligible 
113.20 	for a quality rating according to the quality rating system. Allowable expenditures that 
113.21 	will increase the capacity of the provider or program to help children be ready for school 
113.22 	include purchase of curricula and assessment tools, training on the use of curriculum and 
113.23 	assessment tools, purchase of materials to improve the learning environment, or other 
113.24 	expenditures approved by the commissioner of human services for child care providers 
113.25 	and the commissioner of education for school readiness programs.
113.26 		Subd. 4.Eligibility; applications. Eligible families must have incomes less than or 
113.27 	equal to 185 percent of the federal poverty guidelines. Allowances paid to families under 
113.28 	this program may not be counted as earned income for the purposes of medical assistance, 
113.29 	MinnesotaCare, MFIP, child care assistance, or Head Start programs.
113.30 		Subd. 5.Expenditures. This program shall operate during fiscal years 2008 and 
113.31 	2009.

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

113.33 	Sec. 63.  REPEALER.
 113.34 	(a) Minnesota Statutes 2006, sections 119B.08, subdivision 4; 256J.29; and 
113.35 	256J.626, subdivision 9, are repealed.
114.1 	(b) Minnesota Statutes 2006, section 256J.37, subdivision 3b, is repealed effective 
114.2 	February 1, 2008.
114.3 	(c) Laws 1997, chapter 8, section 1, is repealed.
114.4 	(d) Minnesota Rules, part 9560.0102, subpart 2, item C, is repealed.

114.5 	Sec. 64. EFFECTIVE DATE.
 114.6 	Section 27 (Minnesota Statutes, section 256J.20, subdivision 3) is effective January 
114.7 	1, 2008. Section 13 (Minnesota Statutes, section 119B.13, subdivision 7) is effective 
114.8 	January 1, 2009.

114.9 	ARTICLE 3
114.10 	LICENSING

114.11 	Section 1. Minnesota Statutes 2006, section 245A.035, is amended to read:
114.12 	245A.035 RELATIVE FOSTER CARE; UNLICENSED EMERGENCY 
114.13 	LICENSE RELATIVE PLACEMENT.
114.14 		Subdivision 1.Grant of Emergency license placement. Notwithstanding section 
114.15 	245A.03, subdivision 2a, or 245C.13, subdivision 2, a county agency may place a child 
114.16 	for foster care with a relative who is not licensed to provide foster care, provided the 
114.17 	requirements of subdivision 2 this section are met. As used in this section, the term 
114.18 	"relative" has the meaning given it under section 260C.007, subdivision 27.
114.19 		Subd. 2.Cooperation with emergency licensing placement process. (a) A county 
114.20 	agency that places a child with a relative who is not licensed to provide foster care must 
114.21 	begin the process of securing an emergency license for the relative as soon as possible 
114.22 	and must conduct the initial inspection required by subdivision 3, clause (1), whenever 
114.23 	possible, prior to placing the child in the relative's home, but no later than three working 
114.24 	days after placing the child in the home. A child placed in the home of a relative who is 
114.25 	not licensed to provide foster care must be removed from that home if the relative fails 
114.26 	to cooperate with the county agency in securing an emergency foster care license. The 
114.27 	commissioner may issue an emergency foster care license to a relative with whom the 
114.28 	county agency wishes to place or has placed a child for foster care, or to a relative with 
114.29 	whom a child has been placed by court order.
114.30 	(b) If a child is to be placed in the home of a relative not licensed to provide foster 
114.31 	care, either the placing agency or the county agency in the county in which the relative 
114.32 	lives shall conduct the emergency licensing placement process as required in this section.
114.33 		Subd. 3.Requirements for emergency license placement. Before an emergency 
114.34 	license placement may be issued made, the following requirements must be met:
115.1 	(1) the county agency must conduct an initial inspection of the premises where 
115.2 	the foster care placement is to be provided made to ensure the health and safety of any 
115.3 	child placed in the home. The county agency shall conduct the inspection using a form 
115.4 	developed by the commissioner;
115.5 	(2) at the time of the inspection or placement, whichever is earlier, the county 
115.6 	agency must provide the relative being considered for an emergency license shall receive
115.7 	placement an application form for a child foster care license;
115.8 	(3) whenever possible, prior to placing the child in the relative's home, the relative 
115.9 	being considered for an emergency license placement shall provide the information 
115.10 	required by section 245C.05; and 
115.11 	(4) if the county determines, prior to the issuance of an emergency license
115.12 	placement, that anyone requiring a background study may be prior to licensure of the 
115.13 	home is disqualified under section 245C.14 and chapter 245C, and the disqualification 
115.14 	is one which the commissioner cannot set aside, an emergency license shall placement 
115.15 	must not be issued made.
115.16 		Subd. 4.Applicant study. When the county agency has received the information 
115.17 	required by section 245C.05, the county agency shall begin an applicant study according to 
115.18 	the procedures in chapter 245C. The commissioner may issue an emergency license upon 
115.19 	recommendation of the county agency once the initial inspection has been successfully 
115.20 	completed and the information necessary to begin the applicant background study has been 
115.21 	provided. If the county agency does not recommend that the emergency license be granted, 
115.22 	the agency shall notify the relative in writing that the agency is recommending denial to the 
115.23 	commissioner; shall remove any child who has been placed in the home prior to licensure; 
115.24 	and shall inform the relative in writing of the procedure to request review pursuant to 
115.25 	subdivision 6. An emergency license shall be effective until a child foster care license is 
115.26 	granted or denied, but shall in no case remain in effect more than 120 days from the date 
115.27 	of placement submit the information to the commissioner according to section 245C.05.
115.28 		Subd. 5.Child foster care license application. (a) The relatives with whom the
115.29 	emergency license holder placement has been made shall complete the child foster care 
115.30 	license application and necessary paperwork within ten days of the placement. The county 
115.31 	agency shall assist the emergency license holder applicant to complete the application. 
115.32 	The granting of a child foster care license to a relative shall be under the procedures in this 
115.33 	chapter and according to the standards set forth by foster care rule in Minnesota Rules, 
115.34 	chapter 2960. In licensing a relative, the commissioner shall consider the importance of 
115.35 	maintaining the child's relationship with relatives as an additional significant factor in 
115.36 	determining whether to a background study disqualification should be set aside a licensing 
116.1 	disqualifier under section 245C.22, or to grant a variance of licensing requirements should 
116.2 	be granted under sections 245C.21 to 245C.27 section 245C.30.
116.3 	(b) When the county or private child-placing agency is processing an application 
116.4 	for child foster care licensure of a relative as defined in section 260B.007, subdivision 
116.5 	12, or 260C.007, subdivision 27, the county agency or child-placing agency must explain 
116.6 	the licensing process to the prospective licensee, including the background study process 
116.7 	and the procedure for reconsideration of an initial disqualification for licensure. The 
116.8 	county or private child-placing agency must also provide the prospective relative licensee 
116.9 	with information regarding appropriate options for legal representation in the pertinent 
116.10 	geographic area. If a relative is initially disqualified under section 245C.14, the county 
116.11 	or child-placing agency commissioner must provide written notice of the reasons for the 
116.12 	disqualification and the right to request a reconsideration by the commissioner as required 
116.13 	under section 245C.17.
116.14 	(c) The commissioner shall maintain licensing data so that activities related to 
116.15 	applications and licensing actions for relative foster care providers may be distinguished 
116.16 	from other child foster care settings.
116.17 		Subd. 6.Denial of emergency license. If the commissioner denies an application 
116.18 	for an emergency foster care license under this section, that denial must be in writing and 
116.19 	must include reasons for the denial. Denial of an emergency license is not subject to 
116.20 	appeal under chapter 14. The relative may request a review of the denial by submitting 
116.21 	to the commissioner a written statement of the reasons an emergency license should be 
116.22 	granted. The commissioner shall evaluate the request for review and determine whether 
116.23 	to grant the emergency license. The commissioner's review shall be based on a review 
116.24 	of the records submitted by the county agency and the relative. Within 15 working 
116.25 	days of the receipt of the request for review, the commissioner shall notify the relative 
116.26 	requesting review in written form whether the emergency license will be granted. The 
116.27 	commissioner's review shall be based on a review of the records submitted by the county 
116.28 	agency and the relative. A child shall not be placed or remain placed in the relative's home 
116.29 	while the request for review is pending. Denial of an emergency license shall not preclude 
116.30 	an individual from reapplying for an emergency license or from applying for a child foster 
116.31 	care license. The decision of the commissioner is the final administrative agency action.

116.32 	Sec. 2. Minnesota Statutes 2006, section 245A.10, subdivision 2, is amended to read:
116.33 		Subd. 2.County fees for background studies and licensing inspections. (a) For 
116.34 	purposes of family and group family child care licensing under this chapter, a county 
116.35 	agency may charge a fee to an applicant or license holder to recover the actual cost of 
117.1 	background studies, but in any case not to exceed $100 annually. A county agency may 
117.2 	also charge a license fee to an applicant or license holder to recover the actual cost of 
117.3 	licensing inspections, but in any case not to exceed $150 annually$50 for a one-year 
117.4 	license or $100 for a two-year license.
117.5 	(b) A county agency may charge a fee to a legal nonlicensed child care provider or 
117.6 	applicant for authorization to recover the actual cost of background studies completed 
117.7 	under section  119B.125, but in any case not to exceed $100 annually. 
117.8 	(c) Counties may elect to reduce or waive the fees in paragraph (a) or (b):
117.9 	(1) in cases of financial hardship;
117.10 	(2)  if the county has a shortage of providers in the county's area;
117.11 	(3) for new providers; or
117.12 	(4) for providers who have attained at least 16 hours of training before seeking 
117.13 	initial licensure.
117.14 	(d) Counties may allow providers to pay the applicant fees in paragraph (a) or (b) on 
117.15 	an installment basis for up to one year. If the provider is receiving child care assistance 
117.16 	payments from the state, the provider may have the fees under paragraph (a) or (b) 
117.17 	deducted from the child care assistance payments for up to one year and the state shall 
117.18 	reimburse the county for the county fees collected in this manner.

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

117.20 	Sec. 3. Minnesota Statutes 2006, section 245A.16, subdivision 1, is amended to read:
117.21 		Subdivision 1.Delegation of authority to agencies. (a) County agencies and 
117.22 	private agencies that have been designated or licensed by the commissioner to perform 
117.23 	licensing functions and activities under section 245A.04andbackground studies for 
117.24 	adult foster care, family adult day services, and family child care, under chapter 245C,;
117.25 	to recommend denial of applicants under section 245A.05,; to issue correction orders, 
117.26 	to issue variances, and recommend a conditional license under section 245A.06, or to 
117.27 	recommend suspending or revoking a license or issuing a fine under section 245A.07, 
117.28 	shall comply with rules and directives of the commissioner governing those functions and 
117.29 	with this section. The following variances are excluded from the delegation of variance 
117.30 	authority and may be issued only by the commissioner:
117.31 	(1) dual licensure of family child care and child foster care, dual licensure of child 
117.32 	and adult foster care, and adult foster care and family child care;
117.33 	(2) adult foster care maximum capacity;
117.34 	(3) adult foster care minimum age requirement;
117.35 	(4) child foster care maximum age requirement;
118.1 	(5) variances regarding disqualified individuals except that county agencies may 
118.2 	issue variances under section 245C.30 regarding disqualified individuals when the county 
118.3 	is responsible for conducting a consolidated reconsideration according to sections 245C.25
118.4 	and 245C.27, subdivision 2, clauses (a) and (b), of a county maltreatment determination 
118.5 	and a disqualification based on serious or recurring maltreatment; and
118.6 	(6) the required presence of a caregiver in the adult foster care residence during 
118.7 	normal sleeping hours.
118.8 	(b) County agencies must report:
118.9 	(1) information about disqualification reconsiderations under sections 245C.25 and 
118.10 	245C.27, subdivision 2, clauses paragraphs (a) and (b), and variances granted under 
118.11 	paragraph (a), clause (5), to the commissioner at least monthly in a format prescribed by 
118.12 	the commissioner; and.
118.13 	(2) for relative child foster care applicants and license holders, the number of 
118.14 	relatives, as defined in section 260C.007, subdivision 27, and household members of 
118.15 	relatives who are disqualified under section 245C.14; the disqualifying characteristics 
118.16 	under section 245C.15; the number of these individuals who requested reconsideration 
118.17 	under section 245C.21; the number of set-asides under section 245C.22; and variances 
118.18 	under section 245C.30 issued. This information shall be reported to the commissioner 
118.19 	annually by January 15 of each year in a format prescribed by the commissioner.
118.20 	(c) For family day care programs, the commissioner may authorize licensing reviews 
118.21 	every two years after a licensee has had at least one annual review.
118.22 	(d) For family adult day services programs, the commissioner may authorize 
118.23 	licensing reviews every two years after a licensee has had at least one annual review.
118.24 	(e) A license issued under this section may be issued for up to two years.

118.25 	Sec. 4. Minnesota Statutes 2006, section 245A.16, subdivision 3, is amended to read:
118.26 		Subd. 3.Recommendations to the commissioner. The county or private agency 
118.27 	shall not make recommendations to the commissioner regarding licensure without 
118.28 	first conducting an inspection, and for adult foster care, family adult day services, and 
118.29 	family child care, a background study of the applicant, and evaluation pursuant to under
118.30 	chapter 245C. The county or private agency must forward its recommendation to the 
118.31 	commissioner regarding the appropriate licensing action within 20 working days of 
118.32 	receipt of a completed application.

118.33 	Sec. 5. Minnesota Statutes 2006, section 245C.02, is amended by adding a subdivision 
118.34 	to read:
119.1 		Subd. 14a.Private agency. "Private agency" has the meaning given in section 
119.2 	245A.02, subdivision 12.

119.3 	Sec. 6. Minnesota Statutes 2006, section 245C.04, subdivision 1, is amended to read:
119.4 		Subdivision 1.Licensed programs. (a) The commissioner shall conduct a 
119.5 	background study of an individual required to be studied under section 245C.03, 
119.6 	subdivision 1, at least upon application for initial license for all license types. 
119.7 	(b) The commissioner shall conduct a background study of an individual required 
119.8 	to be studied under section 245C.03, subdivision 1, at reapplication for a license for 
119.9 	family child care,child foster care, and adult foster care, family adult day services, and 
119.10 	family child care. 
119.11 	(c) The commissioner is not required to conduct a study of an individual at the time 
119.12 	of reapplication for a license if the individual's background study was completed by the 
119.13 	commissioner of human services for an adult foster care license holder that is also:
119.14 	(1) registered under chapter 144D; or
119.15 	(2) licensed to provide home and community-based services to people with 
119.16 	disabilities at the foster care location and the license holder does not reside in the foster 
119.17 	care residence; and
119.18 	(3) the following conditions are met:
119.19 	(i) a study of the individual was conducted either at the time of initial licensure or 
119.20 	when the individual became affiliated with the license holder;
119.21 	(ii) the individual has been continuously affiliated with the license holder since 
119.22 	the last study was conducted; and
119.23 	(iii) the last study of the individual was conducted on or after October 1, 1995.
119.24 	(d) From July 1, 2007, to June 30, 2009, the commissioner of human services shall 
119.25 	conduct a study of an individual required to be studied under section 245C.03, at the 
119.26 	time of reapplication for a child foster care license. The county or private agency shall 
119.27 	collect and forward to the commissioner the information required under section 245C.05, 
119.28 	subdivisions 1, paragraphs (a) and (b), and 5, paragraphs (a) and (b). The background 
119.29 	study conducted by the commissioner of human services under this paragraph must 
119.30 	include a review of the information required under section 245C.08, subdivisions 1, 
119.31 	paragraph (a), clauses (1) to (5), 3, and 4.
119.32 	(e) The commissioner of human services shall conduct a background study of an 
119.33 	individual specified under section 245C.03, subdivision 1, paragraph (a), clauses (2) 
119.34 	to (6), who is newly affiliated with a child foster care license holder. The county or 
119.35 	private agency shall collect and forward to the commissioner the information required 
120.1 	under section 245C.05, subdivisions 1 and 5. The background study conducted by the 
120.2 	commissioner of human services under this paragraph must include a review of the 
120.3 	information required under section 245C.08, subdivisions 1, 3, and 4.
120.4 	(f) Applicants for licensure, license holders, and other entities as provided in this 
120.5 	chapter must submit completed background study forms to the commissioner before 
120.6 	individuals specified in section 245C.03, subdivision 1, begin positions allowing direct 
120.7 	contact in any licensed program. 
120.8 	(e) (g) For purposes of this section, a physician licensed under chapter 147 is 
120.9 	considered to be continuously affiliated upon the license holder's receipt from the 
120.10 	commissioner of health or human services of the physician's background study results.

120.11 	Sec. 7. Minnesota Statutes 2006, section 245C.05, subdivision 1, is amended to read:
120.12 		Subdivision 1.Individual studied. (a) The individual who is the subject of the 
120.13 	background study must provide the applicant, license holder, or other entity under section 
120.14 	245C.04 with sufficient information to ensure an accurate study, including: 
120.15 	(1) the individual's first, middle, and last name and all other names by which the 
120.16 	individual has been known;
120.17 	(2) home address, city, and state of residence;
120.18 	(3) zip code;
120.19 	(4) sex;
120.20 	(5) date of birth; and
120.21 	(6) Minnesota driver's license number or state identification number.
120.22 	(b) Every subject of a background study conducted or initiated by counties or private 
120.23 	agencies under this chapter must also provide the home address, city, county, and state of 
120.24 	residence for the past five years.
120.25 	(c) Every subject of a background study related to private agency adoptions or 
120.26 	related to child foster care licensed through a private agency, who is 18 years of age 
120.27 	or older, shall also provide the commissioner a signed consent for the release of any 
120.28 	information received from national crime information databases to the private agency that 
120.29 	initiated the background study.
120.30 	(d) The subject of a background study shall provide fingerprints as required in 
120.31 	subdivision 5, paragraph (c).

120.32 	Sec. 8. Minnesota Statutes 2006, section 245C.05, is amended by adding a subdivision 
120.33 	to read:
121.1 		Subd. 2a.County or private agency. For background studies related to child foster 
121.2 	care, county and private agencies must collect the information under subdivision 1 and 
121.3 	forward it to the commissioner.

121.4 	Sec. 9. Minnesota Statutes 2006, section 245C.05, subdivision 4, is amended to read:
121.5 		Subd. 4.Electronic transmission. For background studies conducted by the 
121.6 	Department of Human Services, the commissioner shall implement a system for the 
121.7 	electronic transmission of:
121.8 	(1) background study information to the commissioner; and
121.9 	(2) background study results to the license holder.; and
121.10 	(3) background study results to county and private agencies for background studies 
121.11 	conducted by the commissioner for child foster care.

121.12 	Sec. 10. Minnesota Statutes 2006, section 245C.05, subdivision 5, is amended to read:
121.13 		Subd. 5.Fingerprints. (a) Except as provided in paragraph (c), for any background 
121.14 	study completed under this chapter, when the commissioner has reasonable cause to 
121.15 	believe that further pertinent information may exist on the subject of the background 
121.16 	study, the subject shall provide the commissioner with a set of classifiable fingerprints 
121.17 	obtained from an authorized law enforcement agency.
121.18 	(b) For purposes of requiring fingerprints, the commissioner has reasonable cause 
121.19 	when, but not limited to, the:
121.20 	(1) information from the Bureau of Criminal Apprehension indicates that the subject 
121.21 	is a multistate offender;
121.22 	(2) information from the Bureau of Criminal Apprehension indicates that multistate 
121.23 	offender status is undetermined; or
121.24 	(3) commissioner has received a report from the subject or a third party indicating 
121.25 	that the subject has a criminal history in a jurisdiction other than Minnesota.
121.26 	(c) Except as specified under section 245C.04, subdivision 1, paragraph (d), for 
121.27 	background studies conducted by the commissioner for child foster care or adoptions, 
121.28 	the subject of the background study, who is 18 years of age or older, shall provide the 
121.29 	commissioner with a set of classifiable fingerprints obtained from an authorized agency.

121.30 	Sec. 11. Minnesota Statutes 2006, section 245C.05, subdivision 7, is amended to read:
121.31 		Subd. 7.Probation officer and corrections agent. (a) A probation officer or 
121.32 	corrections agent shall notify the commissioner of an individual's conviction if the 
121.33 	individual is:
122.1 	(1) affiliated with a program or facility regulated by the Department of Human 
122.2 	Services or Department of Health, a facility serving children or youth licensed by the 
122.3 	Department of Corrections, or any type of home care agency or provider of personal care 
122.4 	assistance services; and
122.5 	(2) convicted of a crime constituting a disqualification under section 245C.14. 
122.6 	(b) For the purpose of this subdivision, "conviction" has the meaning given it 
122.7 	in section 609.02, subdivision 5. 
122.8 	(c) The commissioner, in consultation with the commissioner of corrections, shall 
122.9 	develop forms and information necessary to implement this subdivision and shall provide 
122.10 	the forms and information to the commissioner of corrections for distribution to local 
122.11 	probation officers and corrections agents.
122.12 	(d) The commissioner shall inform individuals subject to a background study that 
122.13 	criminal convictions for disqualifying crimes will be reported to the commissioner by the 
122.14 	corrections system.
122.15 	(e) A probation officer, corrections agent, or corrections agency is not civilly or 
122.16 	criminally liable for disclosing or failing to disclose the information required by this 
122.17 	subdivision.
122.18 	(f) Upon receipt of disqualifying information, the commissioner shall provide the 
122.19 	notice required under section 245C.17, as appropriate, to agencies on record as having 
122.20 	initiated a background study or making a request for documentation of the background 
122.21 	study status of the individual. 
122.22 	(g) This subdivision does not apply to family child care and child foster care
122.23 	programs.

122.24 	Sec. 12. Minnesota Statutes 2006, section 245C.08, subdivision 1, is amended to read:
122.25 		Subdivision 1.Background studies conducted by commissioner of human 
122.26 	services. (a) For a background study conducted by the commissioner, the commissioner 
122.27 	shall review:
122.28 	(1) information related to names of substantiated perpetrators of maltreatment of 
122.29 	vulnerable adults that has been received by the commissioner as required under section 
122.30 	626.557, subdivision 9c, paragraph (i);
122.31 	(2) the commissioner's records relating to the maltreatment of minors in licensed 
122.32 	programs, and from county agency findings of maltreatment of minors as indicated 
122.33 	through the social service information system;
122.34 	(3) information from juvenile courts as required in subdivision 4 for individuals 
122.35 	listed in section 245C.03, subdivision 1, clauses (2), (5), and (6); and
123.1 	(4) information from the Bureau of Criminal Apprehension.; 
123.2 	(5) except as provided in clause (6), information from the national crime information 
123.3 	system when the commissioner has reasonable cause as defined under section 245C.05, 
123.4 	subdivision 5; and
123.5 	(6) for a background study related to a child foster care application for licensure or 
123.6 	adoptions, the commissioner shall also review:
123.7 	(i) information from the child abuse and neglect registry for any state in which the 
123.8 	background study subject has resided for the past five years; and
123.9 	(ii) information from national crime information databases, when the background 
123.10 	study object is 18 years of age or older.
123.11 	(b) Notwithstanding expungement by a court, the commissioner may consider 
123.12 	information obtained under paragraph (a), clauses (3) and (4), unless the commissioner 
123.13 	received notice of the petition for expungement and the court order for expungement is 
123.14 	directed specifically to the commissioner.

123.15 	Sec. 13. Minnesota Statutes 2006, section 245C.08, subdivision 2, is amended to read:
123.16 		Subd. 2.Background studies conducted by a county or private agency. (a) 
123.17 	For a background study conducted by a county or private agency for child foster care,
123.18 	adult foster care, family adult day services, and  family child care homesservices, the 
123.19 	commissioner shall review:
123.20 	(1) information from the county agency's record of substantiated maltreatment 
123.21 	of adults and the maltreatment of minors;
123.22 	(2) information from juvenile courts as required in subdivision 4 for individuals 
123.23 	listed in section 245C.03, subdivision 1, clauses (2), (5), and (6);
123.24 	(3) information from the Bureau of Criminal Apprehension; and
123.25 	(4) arrest and investigative records maintained by the Bureau of Criminal 
123.26 	Apprehension, county attorneys, county sheriffs, courts, county agencies, local police, the 
123.27 	National Criminal Records Repository, and criminal records from other states.
123.28 	(b) If the individual has resided in the county for less than five years, the study shall 
123.29 	include the records specified under paragraph (a) for the previous county or counties of 
123.30 	residence for the past five years.
123.31 	(c) Notwithstanding expungement by a court, the county or private agency may 
123.32 	consider information obtained under paragraph (a), clauses (3) and (4), unless the 
123.33 	commissioner received notice of the petition for expungement and the court order for 
123.34 	expungement is directed specifically to the commissioner.

124.1 	Sec. 14. Minnesota Statutes 2006, section 245C.10, is amended by adding a 
124.2 	subdivision to read:
124.3 		Subd. 4.Temporary personnel agencies, educational programs, and professional 
124.4 	services agencies. The commissioner shall recover the cost of the background studies 
124.5 	initiated by temporary personnel agencies, educational programs, and professional 
124.6 	services agencies that initiate background studies under section 245C.03, subdivision 4, 
124.7 	through a fee of no more than $20 per study charged to the agency. The fees collected 
124.8 	under this subdivision are appropriated to the commissioner for the purpose of conducting 
124.9 	background studies.

124.10 	Sec. 15. Minnesota Statutes 2006, section 245C.11, subdivision 1, is amended to read:
124.11 		Subdivision 1.Adult foster care; criminal conviction data. For individuals who 
124.12 	are required to have background studies under section 245C.03, subdivisions 1 and 2, and 
124.13 	who have been continuously affiliated with a an adult foster care provider that is licensed 
124.14 	in more than one county, criminal conviction data may be shared among those counties in 
124.15 	which the adult foster care programs are licensed. A county agency's receipt of criminal 
124.16 	conviction data from another county agency shall meet the criminal data background 
124.17 	study requirements of this chapter. 

124.18 	Sec. 16. Minnesota Statutes 2006, section 245C.11, subdivision 2, is amended to read:
124.19 		Subd. 2.Jointly licensed programs. A county agency may accept a background 
124.20 	study completed by the commissioner under this chapter in place of the background study 
124.21 	required under section 245A.16, subdivision 3, in programs with joint licensure as home 
124.22 	and community-based services and adult foster care for people with developmental 
124.23 	disabilities when the license holder does not reside in the adult foster care residence and 
124.24 	the subject of the study has been continuously affiliated with the license holder since the 
124.25 	date of the commissioner's study. 

124.26 	Sec. 17. Minnesota Statutes 2006, section 245C.12, is amended to read:
124.27 	245C.12 BACKGROUND STUDY; TRIBAL ORGANIZATIONS.
124.28 	(a) For the purposes of background studies completed by tribal organizations 
124.29 	performing licensing activities otherwise required of the commissioner under this chapter, 
124.30 	after obtaining consent from the background study subject, tribal licensing agencies shall 
124.31 	have access to criminal history data in the same manner as county licensing agencies and 
124.32 	private licensing agencies under this chapter.
125.1 	(b) Tribal organizations may contract with the commissioner to obtain background 
125.2 	study data on individuals under tribal jurisdiction related to adoptions according to 
125.3 	section 245C.34. Tribal organizations may also contract with the commissioner to obtain 
125.4 	background study data on individuals under tribal jurisdiction related to child foster care 
125.5 	according to section 245C.34.

125.6 	Sec. 18. Minnesota Statutes 2006, section 245C.16, subdivision 1, is amended to read:
125.7 		Subdivision 1.Determining immediate risk of harm. (a) If the commissioner 
125.8 	determines that the individual studied has a disqualifying characteristic, the commissioner 
125.9 	shall review the information immediately available and make a determination as to the 
125.10 	subject's immediate risk of harm to persons served by the program where the individual 
125.11 	studied will have direct contact.
125.12 	(b) The commissioner shall consider all relevant information available, including the 
125.13 	following factors in determining the immediate risk of harm:
125.14 	(1) the recency of the disqualifying characteristic;
125.15 	(2) the recency of discharge from probation for the crimes;
125.16 	(3) the number of disqualifying characteristics;
125.17 	(4) the intrusiveness or violence of the disqualifying characteristic;
125.18 	(5) the vulnerability of the victim involved in the disqualifying characteristic;
125.19 	(6) the similarity of the victim to the persons served by the program where the 
125.20 	individual studied will have direct contact; and
125.21 	(7) whether the individual has a disqualification from a previous background study 
125.22 	that has not been set aside.
125.23 	(c) This section does not apply when the subject of a background study is regulated 
125.24 	by a health-related licensing board as defined in chapter 214, and the subject is determined 
125.25 	to be responsible for substantiated maltreatment under section 626.556 or 626.557. 
125.26 	(d) This section does not apply to a background study related to an initial application 
125.27 	for a child foster care license.
125.28 	(e) If the commissioner has reason to believe, based on arrest information or an 
125.29 	active maltreatment investigation, that an individual poses an imminent risk of harm to 
125.30 	persons receiving services, the commissioner may order that the person be continuously 
125.31 	supervised or immediately removed pending the conclusion of the maltreatment 
125.32 	investigation or criminal proceedings.

125.33 	Sec. 19. Minnesota Statutes 2006, section 245C.17, is amended by adding a 
125.34 	subdivision to read:
126.1 		Subd. 5.Notice to county or private agency. For studies on individuals related to a 
126.2 	license to provide child foster care, the commissioner shall also provide a notice of the 
126.3 	background study results to the county or private agency that initiated the background 
126.4 	study.

126.5 	Sec. 20. Minnesota Statutes 2006, section 245C.21, is amended by adding a 
126.6 	subdivision to read:
126.7 		Subd. 1a.Submission of reconsideration request to county or private agency.
 126.8 	(a) For disqualifications related to studies conducted by county agencies, and for 
126.9 	disqualifications related to studies conducted by the commissioner for child foster care, 
126.10 	the individual shall submit the request for reconsideration to the county or private agency 
126.11 	that initiated the background study.
126.12 	(b) A reconsideration request shall be submitted within 30 days of the individual's 
126.13 	receipt of the disqualification notice or the time frames specified in subdivision 2, 
126.14 	whichever time frame is shorter.
126.15 	(c) The county or private agency shall forward the individual's request for 
126.16 	reconsideration and provide the commissioner with a recommendation whether to set aside 
126.17 	the individual's disqualification.

126.18 	Sec. 21. Minnesota Statutes 2006, section 245C.23, subdivision 2, is amended to read:
126.19 		Subd. 2.Commissioner's notice of disqualification that is not set aside. (a) The 
126.20 	commissioner shall notify the license holder of the disqualification and order the license 
126.21 	holder to immediately remove the individual from any position allowing direct contact 
126.22 	with persons receiving services from the license holder if:
126.23 	(1) the individual studied does not submit a timely request for reconsideration 
126.24 	under section 245C.21;
126.25 	(2) the individual submits a timely request for reconsideration, but the commissioner 
126.26 	does not set aside the disqualification for that license holder under section 245C.22;
126.27 	(3) an individual who has a right to request a hearing under sections 245C.27 and 
126.28 	256.045, or 245C.28 and chapter 14 for a disqualification that has not been set aside, does 
126.29 	not request a hearing within the specified time; or
126.30 	(4) an individual submitted a timely request for a hearing under sections 245C.27
126.31 	and 256.045, or 245C.28 and chapter 14, but the commissioner does not set aside the 
126.32 	disqualification under section 245A.08, subdivision 5, or 256.045.
126.33 	(b) If the commissioner does not set aside the disqualification under section 245C.22, 
126.34 	and the license holder was previously ordered under section 245C.17 to immediately 
127.1 	remove the disqualified individual from direct contact with persons receiving services or 
127.2 	to ensure that the individual is under continuous, direct supervision when providing direct 
127.3 	contact services, the order remains in effect pending the outcome of a hearing under 
127.4 	sections 245C.27 and 256.045, or 245C.28 and chapter 14.
127.5 	(c) For background studies related to child foster care, the commissioner shall 
127.6 	also notify the county or private agency that initiated the study of the results of the 
127.7 	reconsideration.

127.8 	Sec. 22. [245C.33] ADOPTION BACKGROUND STUDY REQUIREMENTS.
127.9 		Subdivision 1.Background studies conducted by commissioner. Before 
127.10 	placement of a child for purposes of adoption, the commissioner shall conduct a 
127.11 	background study on individuals listed in section 259.41, subdivision 3, for county 
127.12 	agencies and private agencies licensed to place children for adoption.
127.13 		Subd. 2.Information and data provided to county or private agency. The subject 
127.14 	of the background study shall provide the information specified in section 245C.05.
127.15 		Subd. 3.Information and data provided to commissioner. The county or private 
127.16 	agency shall forward the data collected under subdivision 2 to the commissioner.
127.17 		Subd. 4.Information commissioner reviews. (a) The commissioner shall review 
127.18 	the following information regarding the background study subject:
127.19 	(1) the information under section 245C.08, subdivisions 1, 3, and 4;
127.20 	(2) information from the child abuse and neglect registry for any state in which the 
127.21 	subject has resided for the past five years; and
127.22 	(3) information from national crime information databases, when required under 
127.23 	section 245C.08.
127.24 	(b) The commissioner shall provide any information collected under this subdivision 
127.25 	to the county or private agency that initiated the background study. The commissioner 
127.26 	shall indicate if the information collected shows that the subject of the background study 
127.27 	has a conviction listed in United States Code, title 42, section 671(a)(20)(A).

127.28 	Sec. 23. [245C.34] ADOPTION AND CHILD FOSTER CARE BACKGROUND 
127.29 	STUDIES; TRIBAL ORGANIZATIONS.
127.30 		Subdivision 1.Background studies may be conducted by commissioner. (a) 
127.31 	Tribal organizations may contract with the commissioner under section 245C.12 to obtain 
127.32 	background study data on individuals under tribal jurisdiction related to adoptions.
128.1 	(b) Tribal organizations may contract with the commissioner under section 245C.12 
128.2 	to obtain background study data on individuals under tribal jurisdiction related to child 
128.3 	foster care.
128.4 	(c) Background studies initiated by tribal organizations under paragraphs (a) and (b) 
128.5 	must be conducted as provided in subdivisions 2 and 3.
128.6 		Subd. 2.Information and data provided to tribal organization. The background 
128.7 	study subject must provide the information specified in section 245C.05.
128.8 		Subd. 3.Information and data provided to commissioner. The tribal organization 
128.9 	shall forward the data collected under subdivision 2 to the commissioner.
128.10 		Subd. 4.Information commissioner reviews. (a) The commissioner shall review 
128.11 	the following information regarding the background study subject:
128.12 	(1) the information under section 245C.08, subdivisions 1, 3, and 4;
128.13 	(2) information from the child abuse and neglect registry for any state in which the 
128.14 	subject has resided for the past five years; and
128.15 	(3) information from national crime information databases, when required under 
128.16 	section 245C.08.
128.17 	(b) The commissioner shall provide any information collected under this subdivision 
128.18 	to the tribal organization that initiated the background study. The commissioner shall 
128.19 	indicate if the information collected shows that the subject of the background study has a 
128.20 	conviction listed in United States Code, title 42, section 671(a)(20)(A).

128.21 	Sec. 24. Minnesota Statutes 2006, section 259.20, subdivision 2, is amended to read:
128.22 		Subd. 2.Other applicable law. (a) Portions of chapters 245A, 245C, 257, 260, and 
128.23 	317A may also affect the adoption of a particular child. 
128.24 	(b) Provisions of the Indian Child Welfare Act, United States Code, title 25, chapter 
128.25 	21, sections 1901-1923, may also apply in the adoption of an Indian child, and may 
128.26 	preempt specific provisions of this chapter.
128.27 	(c) Consistent with section 245C.33 and Public Law 109-248, a completed 
128.28 	background study is required before the approval of any foster or adoptive placement in 
128.29 	a related or an unrelated home.

128.30 	Sec. 25. Minnesota Statutes 2006, section 259.29, subdivision 1, is amended to read:
128.31 		Subdivision 1.Best interests of the child. (a) The policy of the state of Minnesota 
128.32 	is to ensure that the best interests of the child are met by requiring individualized 
128.33 	determination of the needs of the child and of how the adoptive placement will serve the 
128.34 	needs of the child.
129.1 	(b) Among the factors the agency shall consider in determining the needs of the child 
129.2 	are those specified under section 260C.193, subdivision 3, paragraph (b).
129.3 	(c) Except for emergency placements provided for in section 245A.035, a completed 
129.4 	background study is required under section 245C.33 before the approval of an adoptive 
129.5 	placement in a home.

129.6 	Sec. 26. Minnesota Statutes 2006, section 259.41, is amended to read:
129.7 	259.41 ADOPTION STUDY.
129.8 		Subdivision 1.Study required before placement; certain relatives excepted. (a) 
129.9 	An approved adoption study; completed background study, as required under section 
129.10 	245C.33; and written report must be completed before the child is placed in a prospective 
129.11 	adoptive home under this chapter, except as allowed by section 259.47, subdivision 6. 
129.12 	In an agency placement, the report must be filed with the court at the time the adoption 
129.13 	petition is filed. In a direct adoptive placement, the report must be filed with the court in 
129.14 	support of a motion for temporary preadoptive custody under section 259.47, subdivision 
129.15 	3, or, if the study and report are complete, in support of an emergency order under section 
129.16 	259.47, subdivision 6. The study and report shall be completed by a licensed child-placing 
129.17 	agency and must be thorough and comprehensive. The study and report shall be paid for 
129.18 	by the prospective adoptive parent, except as otherwise required under section 259.67
129.19 	or 259.73. 
129.20 	(b) A placement for adoption with an individual who is related to the child, as 
129.21 	defined by section 245A.02, subdivision 13, is not subject to this section except as required 
129.22 	by section sections 245C.33 and259.53, subdivision 2, paragraph (c). 
129.23 	(c) In the case of a licensed foster parent seeking to adopt a child who is in the foster 
129.24 	parent's care, any portions of the foster care licensing process that duplicate requirements 
129.25 	of the home study may be submitted in satisfaction of the relevant requirements of this 
129.26 	section.
129.27 		Subd. 2.Form of study. (a) The adoption study must include at least one in-home 
129.28 	visit with the prospective adoptive parent. At a minimum, the study must include
129.29 	document the following information about the prospective adoptive parent:
129.30 	(1) a background check study as required by subdivision 3 and section 245C.33, 
129.31 	and including:
129.32 	(i) an evaluation assessment of the data and information provided by section 
129.33 	245C.33, subdivision 4, to determine if the prospective adoptive parent and any other 
129.34 	person over the age of 13 living in the home has a felony conviction consistent with 
129.35 	subdivision 3 and section 471(a)(2) of the Social Security Act; and
130.1 	(ii) an assessment of the effect of a any conviction or finding of substantiated 
130.2 	maltreatment on the ability to capacity of the prospective adoptive parent to safely care 
130.3 	for and parent a child;
130.4 	(2) a medical and social history and assessment of current health;
130.5 	(3) an assessment of potential parenting skills;
130.6 	(4) an assessment of ability to provide adequate financial support for a child; and
130.7 	(5) an assessment of the level of knowledge and awareness of adoption issues 
130.8 	including, where appropriate, matters relating to interracial, cross-cultural, and special 
130.9 	needs adoptions.
130.10 	(b) The adoption study is the basis for completion of a written report. The report 
130.11 	must be in a format specified by the commissioner and must contain recommendations 
130.12 	regarding the suitability of the subject of the study to be an adoptive parent.
130.13 		Subd. 3.Background check; affidavit of history study. (a) At the time an adoption 
130.14 	study is commenced, each prospective adoptive parent must:
130.15 	(1) authorize access by the agency to any private data needed to complete the study;
130.16 	(2) provide all addresses at which the prospective adoptive parent and anyone in the 
130.17 	household over the age of 13 has resided in the previous five years; and
130.18 	(3) disclose any names used previously other than the name used at the time of 
130.19 	the study.
130.20 	(b) When the requirements of paragraph (a) have been met, the agency shall 
130.21 	immediately begin initiate a background check, study under section 245C.33 to be 
130.22 	completed by the commissioner on each person over the age of 13 living in the home, 
130.23 	consisting, at a minimum, of the following:. As required under section 245C.33 and Public 
130.24 	Law 109-248, a completed background study is required before the approval of any foster 
130.25 	or adoptive placement in a related or an unrelated home. The required background study 
130.26 	must be completed as part of the home study.
130.27 	(1) a check of criminal conviction data with the Bureau of Criminal Apprehension 
130.28 	and local law enforcement authorities;
130.29 	(2) a check for data on substantiated maltreatment of a child or vulnerable adult 
130.30 	and domestic violence data with local law enforcement and social services agencies and 
130.31 	district courts; and
130.32 	(3) for those persons under the age of 25, a check of juvenile court records.
130.33 	Notwithstanding the provisions of section 260B.171 or 260C.171, the Bureau of 
130.34 	Criminal Apprehension, local law enforcement and social services agencies, district courts, 
130.35 	and juvenile courts shall release the requested information to the agency completing 
130.36 	the adoption study.
131.1 	(c) When paragraph (b) requires checking the data or records of local law 
131.2 	enforcement and social services agencies and district and juvenile courts, the agency 
131.3 	shall check with the law enforcement and social services agencies and courts whose 
131.4 	jurisdictions cover the addresses under paragraph (a), clause (2). In the event that the 
131.5 	agency is unable to complete any of the record checks required by paragraph (b), the 
131.6 	agency shall document the fact and the agency's efforts to obtain the information.
131.7 	(d) For a study completed under this section, when the agency has reasonable 
131.8 	cause to believe that further information may exist on the prospective adoptive parent or 
131.9 	household member over the age of 13 that may relate to the health, safety, or welfare of 
131.10 	the child, the prospective adoptive parent or household member over the age of 13 shall 
131.11 	provide the agency with a set of classifiable fingerprints obtained from an authorized law 
131.12 	enforcement agency and the agency may obtain criminal history data from the National 
131.13 	Criminal Records Repository by submitting fingerprints to the Bureau of Criminal 
131.14 	Apprehension. The agency has reasonable cause when, but not limited to, the:
131.15 	(1) information from the Bureau of Criminal Apprehension indicates that the 
131.16 	prospective adoptive parent or household member over the age of 13 is a multistate 
131.17 	offender;
131.18 	(2) information from the Bureau of Criminal Apprehension indicates that multistate 
131.19 	offender status is undetermined;
131.20 	(3) the agency has received a report from the prospective adoptive parent or 
131.21 	household member over the age of 13 or a third party indicating that the prospective 
131.22 	adoptive parent or household member over the age of 13 has a criminal history in a 
131.23 	jurisdiction other than Minnesota; or
131.24 	(4) the prospective adoptive parent or household member over the age of 13 is or has 
131.25 	been a resident of a state other than Minnesota in the prior five years.
131.26 	(e) At any time prior to completion of the background check required under 
131.27 	paragraph (b), a prospective adoptive parent may submit to the agency conducting the 
131.28 	study a sworn affidavit stating whether they or any person residing in the household have 
131.29 	been convicted of a crime. The affidavit shall also state whether the adoptive parent or any 
131.30 	other person residing in the household is the subject of an open investigation of, or have 
131.31 	been the subject of a substantiated allegation of, child or vulnerable-adult maltreatment 
131.32 	within the past ten years. A complete description of the crime, open investigation, or 
131.33 	substantiated abuse, and a complete description of any sentence, treatment, or disposition 
131.34 	must be included. The affidavit must contain an acknowledgment that if, at any time 
131.35 	before the adoption is final, a court receives evidence leading to a conclusion that a 
131.36 	prospective adoptive parent knowingly gave false information in the affidavit, it shall be 
132.1 	determined that the adoption of the child by the prospective adoptive parent is not in the 
132.2 	best interests of the child.
132.3 	(f) For the purposes of subdivision 1 and section 259.47, subdivisions 3 and 6, an 
132.4 	adoption study is complete for placement, even though the background checks required by 
132.5 	paragraph (b) have not been completed, if each prospective adoptive parent has completed 
132.6 	the affidavit allowed by paragraph (e) and the other requirements of this section have been 
132.7 	met. The background checks required by paragraph (b) must be completed before an 
132.8 	adoption petition is filed. If an adoption study has been submitted to the court under section 
132.9 	259.47, subdivision 3 or 6, before the background checks required by paragraph (b) were 
132.10 	complete, an updated adoption study report which includes the results of the background 
132.11 	check must be filed with the adoption petition. In the event that an agency is unable to 
132.12 	complete any of the records checks required by paragraph (b), the agency shall submit with 
132.13 	the petition to adopt an affidavit documenting the agency's efforts to complete the checks.
132.14 	(c) A home study under paragraph (b) used to consider placement of any child 
132.15 	on whose behalf Title IV-E adoption assistance payments are to be made must not be 
132.16 	approved if a background study reveals a felony conviction at any time for:
132.17 	(1) child abuse or neglect;
132.18 	(2) spousal abuse;
132.19 	(3) a crime against children, including child pornography; or
132.20 	(4) a crime involving violence, including rape, sexual assault, or homicide, but not 
132.21 	including other physical assault or battery.
132.22 	(d) A home study under paragraph (b) used to consider placement of any child 
132.23 	on whose behalf Title IV-E adoption assistance payments are to be made must not be 
132.24 	approved if a background study reveals a felony conviction within the past five years for:
132.25 	(1) physical assault or battery; or
132.26 	(2) a drug-related offense.
132.27 		Subd. 4.Updates to adoption study; period of validity. An agency may update 
132.28 	an adoption study and report as needed, regardless of when the original study and report 
132.29 	or most recent update was completed. An update must be in a format specified by the 
132.30 	commissioner and must verify the continuing accuracy of the elements of the original 
132.31 	report and document any changes to elements of the original report. An update to a study 
132.32 	and report not originally completed under this section must ensure that the study and 
132.33 	report, as updated, meet the requirements of this section. An adoption study is valid if the 
132.34 	report has been completed or updated within the previous 12 months.

132.35 	Sec. 27. Minnesota Statutes 2006, section 259.53, subdivision 2, is amended to read:
133.1 		Subd. 2.Adoption agencies; postplacement assessment and report. (a) The 
133.2 	agency to which the petition has been referred under subdivision 1 shall conduct a 
133.3 	postplacement assessment and file a report with the court within 90 days of receipt 
133.4 	of a copy of the adoption petition. The agency shall send a copy of the report to the 
133.5 	commissioner at the time it files the report with the court. The assessment and report 
133.6 	must evaluate the environment and antecedents of the child to be adopted, the home of 
133.7 	the petitioners, whether placement with the petitioners meets the needs of the child as 
133.8 	described in section 259.57, subdivision 2. The report must include a recommendation to 
133.9 	the court as to whether the petition should or should not be granted. 
133.10 	In making evaluations and recommendations, the postplacement assessment and 
133.11 	report must, at a minimum, address the following:
133.12 	(1) the level of adaptation by the prospective adoptive parents to parenting the child;
133.13 	(2) the health and well-being of the child in the prospective adoptive parents' home;
133.14 	(3) the level of incorporation by the child into the prospective adoptive parents' 
133.15 	home, extended family, and community; and
133.16 	(4) the level of inclusion of the child's previous history into the prospective adoptive 
133.17 	home, such as cultural or ethnic practices, or contact with former foster parents or 
133.18 	biological relatives.
133.19 	(b) A postplacement adoption report is valid for 12 months following its date 
133.20 	of completion.
133.21 	(c) If the petitioner is an individual who is related to the child, as defined by section 
133.22 	245A.02, subdivision 13, the agency, as part of its postplacement assessment and report 
133.23 	under paragraph (a), shall conduct a background check meeting the requirements of 
133.24 	section 259.41, subdivision 3, paragraph (b). The prospective adoptive parent shall 
133.25 	cooperate in the completion of the background check by supplying the information and 
133.26 	authorizations described in section 259.41, subdivision 3, paragraph (a).
133.27 	(d) (c) If the report recommends that the court not grant the petition to adopt the 
133.28 	child, the provisions of this paragraph apply. Unless the assessment and report were 
133.29 	completed by the local social services agency, the agency completing the report, at the 
133.30 	time it files the report with the court under paragraph (a), must provide a copy of the report 
133.31 	to the local social services agency in the county where the prospective adoptive parent 
133.32 	lives. The agency or local social services agency may recommend that the court dismiss 
133.33 	the petition. If the local social services agency determines that continued placement in the 
133.34 	home endangers the child's physical or emotional health, the agency shall seek a court 
133.35 	order to remove the child from the home.
134.1 	(e) (d) If, through no fault of the petitioner, the agency to whom the petition was 
134.2 	referred under subdivision 1, paragraph (b), fails to complete the assessment and file the 
134.3 	report within 90 days of the date it received a copy of the adoption petition, the court may 
134.4 	hear the petition upon giving the agency and the local social services agency, if different, 
134.5 	five days' notice by mail of the time and place of the hearing.

134.6 	Sec. 28. Minnesota Statutes 2006, section 259.57, subdivision 2, is amended to read:
134.7 		Subd. 2.Protection of child's best interests. (a) The policy of the state of 
134.8 	Minnesota is to ensure that the best interests of children are met by requiring an 
134.9 	individualized determination of the needs of the child and how the adoptive placement 
134.10 	will serve the needs of the child.
134.11 	(b) Among the factors the court shall consider in determining the needs of the child 
134.12 	are those specified under section 260C.193, subdivision 3, paragraph (b). Consistent with 
134.13 	section 245C.33 and Public Law 109-248, a complete background study is required before 
134.14 	the approval of an adoptive placement in a home. 
134.15 	(c) In reviewing adoptive placement and in determining appropriate adoption, 
134.16 	the court shall consider placement, consistent with the child's best interests and in the 
134.17 	following order, with (1) a relative or relatives of the child, or (2) an important friend with 
134.18 	whom the child has resided or had significant contact. Placement of a child cannot be 
134.19 	delayed or denied based on race, color, or national origin of the adoptive parent or the 
134.20 	child. Whenever possible, siblings should be placed together unless it is determined 
134.21 	not to be in the best interests of a sibling.
134.22 	(d) If the child's birth parent or parents explicitly request that relatives and important 
134.23 	friends not be considered, the court shall honor that request consistent with the best 
134.24 	interests of the child.
134.25 	If the child's birth parent or parents express a preference for placing the child in an 
134.26 	adoptive home of the same or a similar religious background to that of the birth parent 
134.27 	or parents, the court shall place the child with a family that also meets the birth parent's 
134.28 	religious preference. Only if no family is available as described in clause (a) or (b) 
134.29 	may the court give preference to a family described in clause (c) that meets the parent's 
134.30 	religious preference.
134.31 	(e) This subdivision does not affect the Indian Child Welfare Act, United States 
134.32 	Code, title 25, sections 1901 to 1923, and the Minnesota Indian Family Preservation 
134.33 	Act, sections 260.751 to 260.835.

135.1 	Sec. 29. Minnesota Statutes 2006, section 260C.209, is amended to read:
135.2 	260C.209 BACKGROUND CHECKS.
135.3 		Subdivision 1.Subjects. The responsible social services agency must conduct
135.4 	initiate a background check study to be completed by the commissioner under this section 
135.5 	of chapter 245C on the following individuals:
135.6 	(1) a noncustodial parent or nonadjudicated parent who is being assessed for 
135.7 	purposes of providing day-to-day care of a child temporarily or permanently under section 
135.8 	260C.212, subdivision 4, and any member of the parent's household who is over the age of 
135.9 	13 when there is a reasonable cause to believe that the parent or household member over 
135.10 	age 13 has a criminal history or a history of maltreatment of a child or vulnerable adult 
135.11 	which would endanger the child's health, safety, or welfare;
135.12 	(2) an individual whose suitability for relative placement under section 260C.212, 
135.13 	subdivision 5, is being determined and any member of the relative's household who is 
135.14 	over the age of 13 when:
135.15 	(i) the relative must be licensed for foster care; or
135.16 	(ii) the agency must conduct a background study is required under section 259.53, 
135.17 	subdivision 2; or
135.18 	(iii) the agency or the commissioner has reasonable cause to believe the relative 
135.19 	or household member over the age of 13 has a criminal history which would not make 
135.20 	transfer of permanent legal and physical custody to the relative under section 260C.201, 
135.21 	subdivision 11, in the child's best interest; and
135.22 	(3) a parent, following an out-of-home placement, when the responsible social 
135.23 	services agency has reasonable cause to believe that the parent has been convicted of a 
135.24 	crime directly related to the parent's capacity to maintain the child's health, safety, or 
135.25 	welfare or the parent is the subject of an open investigation of, or has been the subject 
135.26 	of a substantiated allegation of, child or vulnerable-adult maltreatment within the past 
135.27 	ten years.
135.28 	"Reasonable cause" means that the agency has received information or a report from the 
135.29 	subject or a third person that creates an articulable suspicion that the individual has a 
135.30 	history that may pose a risk to the health, safety, or welfare of the child. The information 
135.31 	or report must be specific to the potential subject of the background check and shall not 
135.32 	be based on the race, religion, ethnic background, age, class, or lifestyle of the potential 
135.33 	subject.
135.34 		Subd. 2.General procedures. (a) When conducting initiating a background check 
135.35 	under subdivision 1, the agency may shall require the individual being assessed to provide 
135.36 	sufficient information to ensure an accurate assessment under this section, including:
136.1 	(1) the individual's first, middle, and last name and all other names by which the 
136.2 	individual has been known;
136.3 	(2) home address, zip code, city, county, and state of residence for the past ten five
136.4 	years;
136.5 	(3) sex;
136.6 	(4) date of birth; and
136.7 	(5) driver's license number or state identification number.
136.8 	(b) When notified by the commissioner or the responsible social services agency that 
136.9 	it is conducting an assessment under this section, the Bureau of Criminal Apprehension, 
136.10 	commissioners of health and human services, law enforcement, and county agencies must 
136.11 	provide the commissioner or the responsible social services agency or county attorney 
136.12 	with the following information on the individual being assessed: criminal history data, 
136.13 	reports about the maltreatment of adults substantiated under section 626.557, and reports 
136.14 	of maltreatment of minors substantiated under section 626.556.
136.15 		Subd. 3.Multistate information. (a) For any assessment every background study
136.16 	completed under this section, if the responsible social services agency has reasonable 
136.17 	cause to believe that the individual is a multistate offender, the individual must the subject 
136.18 	of the background study shall provide the responsible social services agency or the 
136.19 	county attorney with a set of classifiable fingerprints obtained from an authorized law 
136.20 	enforcement agency. The responsible social services agency or county attorney may shall 
136.21 	provide the fingerprints to the commissioner, and the commissioner shall obtain criminal 
136.22 	history data from the National Criminal Records Repository by submitting the fingerprints 
136.23 	to the Bureau of Criminal Apprehension.
136.24 	(b) For purposes of this subdivision, the responsible social services agency has 
136.25 	reasonable cause when, but not limited to:
136.26 	(1) information from the Bureau of Criminal Apprehension indicates that the 
136.27 	individual is a multistate offender;
136.28 	(2) information from the Bureau of Criminal Apprehension indicates that multistate 
136.29 	offender status is undetermined;
136.30 	(3) the social services agency has received a report from the individual or a third 
136.31 	party indicating that the individual has a criminal history in a jurisdiction other than 
136.32 	Minnesota; or
136.33 	(4) the individual is or has been a resident of a state other than Minnesota at any 
136.34 	time during the prior ten years.
136.35 		Subd. 4.Notice upon receipt. The responsible social services agency commissioner
136.36 	must provide the subject of the background study with the results of the study as required
137.1 	under this section within 15 business days of receipt or at least 15 days prior to the hearing 
137.2 	at which the results will be presented, whichever comes first. The subject may provide 
137.3 	written information to the agency that the results are incorrect and may provide additional 
137.4 	or clarifying information to the agency and to the court through a party to the proceeding. 
137.5 	This provision does not apply to any background study conducted under chapters 245A 
137.6 	and chapter 245C.

137.7 	Sec. 30. Minnesota Statutes 2006, section 260C.212, subdivision 2, is amended to read:
137.8 		Subd. 2.Placement decisions based on best interest of the child. (a) The policy 
137.9 	of the state of Minnesota is to ensure that the child's best interests are met by requiring an 
137.10 	individualized determination of the needs of the child and of how the selected placement 
137.11 	will serve the needs of the child being placed. The authorized child-placing agency shall 
137.12 	place a child, released by court order or by voluntary release by the parent or parents, in 
137.13 	a family foster home selected by considering placement with relatives and important 
137.14 	friends in the following order:
137.15 	(1) with an individual who is related to the child by blood, marriage, or adoption; or
137.16 	(2) with an individual who is an important friend with whom the child has resided or 
137.17 	had significant contact.
137.18 	(b) Among the factors the agency shall consider in determining the needs of the 
137.19 	child are the following:
137.20 	(1) the child's current functioning and behaviors;
137.21 	(2) the medical, educational, and developmental needs of the child;
137.22 	(3) the child's history and past experience;
137.23 	(4) the child's religious and cultural needs;
137.24 	(5) the child's connection with a community, school, and church;
137.25 	(6) the child's interests and talents;
137.26 	(7) the child's relationship to current caretakers, parents, siblings, and relatives; and
137.27 	(8) the reasonable preference of the child, if the court, or the child-placing agency 
137.28 	in the case of a voluntary placement, deems the child to be of sufficient age to express 
137.29 	preferences.
137.30 	(c) Placement of a child cannot be delayed or denied based on race, color, or national 
137.31 	origin of the foster parent or the child.
137.32 	(d) Siblings should be placed together for foster care and adoption at the earliest 
137.33 	possible time unless it is determined not to be in the best interests of a sibling or unless it 
137.34 	is not possible after appropriate efforts by the responsible social services agency.
138.1 	(e) Except for emergency placement as provided for in section 245A.035, a 
138.2 	completed background study is required under section 245C.08 before the approval of a 
138.3 	foster placement in a related or unrelated home.

138.4 	Sec. 31. LICENSING MORATORIUM.
 138.5 	A program operated by a nonpublic school for children 33 months or older is 
138.6 	exempt from the human services licensing requirements in Minnesota Statutes, chapter 
138.7 	245A, until July 1, 2009. Nothing in this section prohibits an already licensed nonpublic 
138.8 	school program from continuing its licensure or a nonpublic school program from seeking 
138.9 	licensure.

138.10 	EFFECTIVE DATE. This moratorium is effective the day following final 
138.11 	enactment.

138.12 	Sec. 32. ANNUAL LICENSE REVIEW.
 138.13 	The commissioner of human services shall work with counties to determine the cost 
138.14 	and propose an ongoing funding allocation from the general fund to cover the cost to 
138.15 	counties to implement an annual license review for licensed family child care providers. 
138.16 	The commissioner shall solicit input from counties to determine the outcome. The 
138.17 	commissioner shall report to the house and senate committees having jurisdiction over 
138.18 	early childhood programs by January 15, 2008, as to the costs and the funding allocation 
138.19 	recommended for future use.

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

138.21 	ARTICLE 4
138.22 	HEALTH CARE POLICY

138.23 	Section 1. Minnesota Statutes 2006, section 16A.724, subdivision 2, is amended to 
138.24 	read:
138.25 		Subd. 2.Transfers. (a) Notwithstanding section 295.581, to the extent available 
138.26 	resources in the health care access fund exceed expenditures in that fund, effective with
138.27 	for the biennium beginning July 1, 2007, the commissioner of finance shall transfer the 
138.28 	excess funds from the health care access fund to the general fund on June 30 of each year, 
138.29 	provided that the amount transferred in any fiscal biennium shall not exceed $96,000,000.
138.30 	The purpose of this transfer is to meet the rate increase required under Laws 2003, First 
138.31 	Special Session chapter 14, article 13C, section 2, subdivision 6.
139.1 	(b) For fiscal years 2006 to 2009, MinnesotaCare shall be a forecasted program, and, 
139.2 	if necessary, the commissioner shall reduce these transfers from the health care access 
139.3 	fund to the general fund to meet annual MinnesotaCare expenditures or, if necessary, 
139.4 	transfer sufficient funds from the general fund to the health care access fund to meet 
139.5 	annual MinnesotaCare expenditures.

139.6 	Sec. 2. [254A.171] INTERVENTION AND ADVOCACY PROGRAM.
139.7 	Within the limit of money available, the commissioner shall fund voluntary outreach 
139.8 	programs targeted at women who deliver children affected by prenatal alcohol or drug use. 
139.9 	The programs shall help women obtain treatment, stay in recovery, and plan any future 
139.10 	pregnancies. An advocate shall be assigned to each woman in the program to provide 
139.11 	guidance and advice with respect to treatment programs, child safety and parenting, 
139.12 	housing, family planning, and any other personal issues that are barriers to remaining free 
139.13 	of chemical dependency.

139.14 	Sec. 3. Minnesota Statutes 2006, section 256B.055, subdivision 14, is amended to read:
139.15 		Subd. 14.Persons detained by law. (a) Medical assistance may be paid for an 
139.16 	inmate of a correctional facility who is conditionally released as authorized under section 
139.17 	241.26, 244.065, or 631.425, if the individual does not require the security of a public 
139.18 	detention facility and is housed in a halfway house or community correction center, or 
139.19 	under house arrest and monitored by electronic surveillance in a residence approved 
139.20 	by the commissioner of corrections, and if the individual meets the other eligibility 
139.21 	requirements of this chapter.
139.22 	(b) An individual who is enrolled in medical assistance, and who is charged with a 
139.23 	crime and incarcerated for less than 12 months shall be suspended from eligibility at the 
139.24 	time of incarceration until the individual is released. Upon release, medical assistance 
139.25 	eligibility is reinstated without reapplication using a reinstatement process and form, if the 
139.26 	individual is otherwise eligible.
139.27 	(c) An individual, regardless of age, who is considered an inmate of a public 
139.28 	institution as defined in Code of Federal Regulations, title 42, section 435.1009, is not 
139.29 	eligible for medical assistance.

139.30 	Sec. 4. Minnesota Statutes 2006, section 256B.056, is amended by adding a 
139.31 	subdivision to read:
139.32 		Subd. 1d.Treatment of certain monetary gifts. The commissioner shall disregard 
139.33 	as income any portion of a monetary gift received by an applicant or enrollee that is 
140.1 	designated to purchase a prosthetic device not covered by insurance, other third-party 
140.2 	payers, or medical assistance.

140.3 	Sec. 5. Minnesota Statutes 2006, section 256B.0625, subdivision 13c, is amended to 
140.4 	read:
140.5 		Subd. 13c.Formulary committee. The commissioner, after receiving 
140.6 	recommendations from professional medical associations and professional pharmacy 
140.7 	associations, and consumer groups shall designate a Formulary Committee to carry 
140.8 	out duties as described in subdivisions 13 to 13g. The Formulary Committee shall be 
140.9 	comprised of four licensed physicians actively engaged in the practice of medicine in 
140.10 	Minnesota one of whom must be actively engaged in the treatment of persons with mental 
140.11 	illness; at least three licensed pharmacists actively engaged in the practice of pharmacy 
140.12 	in Minnesota; and one consumer representative; the remainder to be made up of health 
140.13 	care professionals who are licensed in their field and have recognized knowledge in the 
140.14 	clinically appropriate prescribing, dispensing, and monitoring of covered outpatient drugs. 
140.15 	Members of the Formulary Committee shall not be employed by the Department of 
140.16 	Human Services, but the committee shall be staffed by an employee of the department 
140.17 	who shall serve as an ex officio, nonvoting member of the board committee. The 
140.18 	department's medical director shall also serve as an ex officio, nonvoting member for the 
140.19 	committee. Committee members shall serve three-year terms and may be reappointed 
140.20 	by the commissioner. The Formulary Committee shall meet at least quarterly. The 
140.21 	commissioner may require more frequent Formulary Committee meetings as needed. An 
140.22 	honorarium of $100 per meeting and reimbursement for mileage shall be paid to each 
140.23 	committee member in attendance.

140.24 	Sec. 6. Minnesota Statutes 2006, section 256B.0625, subdivision 13d, is amended to 
140.25 	read:
140.26 		Subd. 13d.Drug formulary. (a) The commissioner shall establish a drug 
140.27 	formulary. Its establishment and publication shall not be subject to the requirements of the 
140.28 	Administrative Procedure Act, but the Formulary Committee shall review and comment 
140.29 	on the formulary contents.
140.30 	(b) The formulary shall not include:
140.31 	(1) drugs or products for which there is no federal funding;
140.32 	(2) over-the-counter drugs, except as provided in subdivision 13;
140.33 	(3) drugs used for weight loss, except that medically necessary lipase inhibitors may 
140.34 	be covered for a recipient with type II diabetes;
141.1 	(4) drugs when used for the treatment of impotence or erectile dysfunction;
141.2 	(5) drugs for which medical value has not been established; and
141.3 	(6) drugs from manufacturers who have not signed a rebate agreement with the 
141.4 	Department of Health and Human Services pursuant to section 1927 of title XIX of the 
141.5 	Social Security Act.
141.6 	(c) If a single-source drug used by at least two percent of the fee-for-service 
141.7 	medical assistance recipients is removed from the formulary due to the failure of the 
141.8 	manufacturer to sign a rebate agreement with the Department of Health and Human 
141.9 	Services, the commissioner shall notify prescribing practitioners within 30 days of 
141.10 	receiving notification from the Centers for Medicare and Medicaid Services (CMS) that a 
141.11 	rebate agreement was not signed.

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

141.13 	Sec. 7. Minnesota Statutes 2006, section 256B.0625, is amended by adding a 
141.14 	subdivision to read:
141.15 		Subd. 49.Community health worker. (a) Medical assistance covers the care 
141.16 	coordination and patient education services provided by a community health worker if 
141.17 	the community health worker has: 
141.18 	(1) received a certificate from the Minnesota State Colleges and Universities System 
141.19 	approved community health worker curriculum; or
141.20 	(2) at least five years of supervised experience with an enrolled physician, registered 
141.21 	nurse, or advanced practice registered nurse.
141.22 	Community health workers eligible for payment under clause (2) must complete the 
141.23 	certification program by January 1, 2010, to continue to be eligible for payment.
141.24 	(b) Community health workers must work under the supervision of a medical 
141.25 	assistance enrolled physician, registered nurse, or advanced practice registered nurse.

141.26 	Sec. 8. Minnesota Statutes 2006, section 256L.03, subdivision 5, is amended to read:
141.27 		Subd. 5.Co-payments and coinsurance. (a) Except as provided in paragraphs (b) 
141.28 	and (c), the MinnesotaCare benefit plan shall include the following co-payments and 
141.29 	coinsurance requirements for all enrollees:
141.30 	(1) ten percent of the paid charges for inpatient hospital services for adult enrollees, 
141.31 	subject to an annual inpatient out-of-pocket maximum of $1,000 per individual and 
141.32 	$3,000 per family;
141.33 	(2) $3 per prescription for adult enrollees;
142.1 	(3) $25 for eyeglasses for adult enrollees;
142.2 	(4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an 
142.3 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
142.4 	established illness, and which is delivered in an ambulatory setting by a physician or 
142.5 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
142.6 	audiologist, optician, or optometrist; and
142.7 	(5) $6 for nonemergency visits to a hospital-based emergency room.
142.8 	(b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of 
142.9 	children under the age of 21 in households with family income equal to or less than 175 
142.10 	percent of the federal poverty guidelines. Paragraph (a), clause (1), does not apply to 
142.11 	parents and relative caretakers of children under the age of 21 in households with family 
142.12 	income greater than 175 percent of the federal poverty guidelines for inpatient hospital 
142.13 	admissions occurring on or after January 1, 2001.
142.14 	(c) Paragraph (a), clauses (1) to (4), dodoes not apply to pregnant women and 
142.15 	children under the age of 21.
142.16 	(d) Adult enrollees with family gross income that exceeds 175 percent of the 
142.17 	federal poverty guidelines and who are not pregnant shall be financially responsible for 
142.18 	the coinsurance amount, if applicable, and amounts which exceed the $10,000 inpatient 
142.19 	hospital benefit limit.
142.20 	(e) When a MinnesotaCare enrollee becomes a member of a prepaid health plan, 
142.21 	or changes from one prepaid health plan to another during a calendar year, any charges 
142.22 	submitted towards the $10,000 annual inpatient benefit limit, and any out-of-pocket 
142.23 	expenses incurred by the enrollee for inpatient services, that were submitted or incurred 
142.24 	prior to enrollment, or prior to the change in health plans, shall be disregarded.

142.25 	Sec. 9. Minnesota Statutes 2006, section 256L.04, subdivision 12, is amended to read:
142.26 		Subd. 12.Persons in detention. Beginning January 1, 1999, an applicant residing 
142.27 	in a correctional or detention facility is not eligible for MinnesotaCare. An enrollee 
142.28 	residing in a correctional or detention facility is not eligible at renewal of eligibility under 
142.29 	section 256L.05, subdivision 3b 3a.

142.30 	Sec. 10. Minnesota Statutes 2006, section 256L.17, subdivision 3, is amended to read:
142.31 		Subd. 3.Documentation. (a) The commissioner of human services shall require 
142.32 	individuals and families, at the time of application or renewal, to indicate on a checkoff 
142.33 	form developed by the commissioner whether they satisfy the MinnesotaCare asset 
142.34 	requirement. This form must include the following or similar language: "To be eligible for 
143.1 	MinnesotaCare, individuals and families must not own net assets in excess of $30,000 
143.2 	for a household of two or more persons or $15,000 for a household of one person, not 
143.3 	including a homestead, household goods and personal effects, assets owned by children, 
143.4 	vehicles used for employment, court-ordered settlements up to $10,000, individual 
143.5 	retirement accounts, and capital and operating assets of a trade or business up to $200,000. 
143.6 	Do you and your household own net assets in excess of these limits?"
143.7 	(b) The commissioner may require individuals and families to provide any 
143.8 	information the commissioner determines necessary to verify compliance with the asset 
143.9 	requirement, if the commissioner determines that there is reason to believe that an 
143.10 	individual or family has assets that exceed the program limit.

143.11 	ARTICLE 5
143.12 	HEALTH CARE

143.13 	Section 1. Minnesota Statutes 2006, section 16A.724, subdivision 2, is amended to 
143.14 	read:
143.15 		Subd. 2.Transfers. (a) Notwithstanding section 295.581, to the extent available 
143.16 	resources in the health care access fund exceed expenditures in that fund, effective with
143.17 	for the biennium beginning July 1, 2007, the commissioner of finance shall transfer the 
143.18 	excess funds from the health care access fund to the general fund on June 30 of each year, 
143.19 	provided that the amount transferred in any fiscal biennium shall not exceed $96,000,000.
143.20 	The purpose of this transfer is to meet the rate increase required under Laws 2003, First 
143.21 	Special Session chapter 14, article 13C, section 2, subdivision 6.
143.22 	(b) For fiscal years 2006 to 2009 2011, MinnesotaCare shall be a forecasted 
143.23 	program, and, if necessary, the commissioner shall reduce these transfers from the health 
143.24 	care access fund to the general fund to meet annual MinnesotaCare expenditures or, if 
143.25 	necessary, transfer sufficient funds from the general fund to the health care access fund to 
143.26 	meet annual MinnesotaCare expenditures.

143.27 	Sec. 2. [256.962] MINNESOTA HEALTH CARE PROGRAMS OUTREACH.
143.28 		Subdivision 1.Public awareness and education. The commissioner, in consultation 
143.29 	with community organizations, health plans, and other public entities experienced in 
143.30 	outreach to the uninsured, shall design and implement a statewide campaign to raise public 
143.31 	awareness on the availability of health coverage through medical assistance, general 
143.32 	assistance medical care, and MinnesotaCare and to educate the public on the importance of 
143.33 	obtaining and maintaining health care coverage. The campaign shall include multimedia 
143.34 	messages directed to the general population.
144.1 		Subd. 2.Outreach grants. (a) The commissioner shall award grants to public and 
144.2 	private organizations, regional collaboratives, and regional health care outreach centers 
144.3 	for outreach activities, including, but not limited to: 
144.4 	(1) providing information, applications, and assistance in obtaining coverage 
144.5 	through Minnesota public health care programs;
144.6 	(2) collaborating with public and private entities such as hospitals, providers, health 
144.7 	plans, legal aid offices, pharmacies, insurance agencies, and faith-based organizations to 
144.8 	develop outreach activities and partnerships to ensure the distribution of information 
144.9 	and applications and provide assistance in obtaining coverage through Minnesota health 
144.10 	care programs; and
144.11 	(3) providing or collaborating with public and private entities to provide multilingual 
144.12 	and culturally specific information and assistance to applicants in areas of high 
144.13 	uninsurance in the state or populations with high rates of uninsurance.
144.14 	(b) The commissioner shall ensure that all outreach materials are available in 
144.15 	languages other than English.
144.16 	(c) The commissioner shall establish an outreach trainer program to provide 
144.17 	training to designated individuals from the community and public and private entities on 
144.18 	application assistance in order for these individuals to provide training to others in the 
144.19 	community on an as-needed basis.
144.20 		Subd. 3. Application and assistance. (a) The Minnesota health care programs 
144.21 	application must be made available at provider offices, local human services agencies, 
144.22 	school districts, public and private elementary schools in which 25 percent or more of 
144.23 	the students receive free or reduced price lunches, community health offices, Women, 
144.24 	Infants and Children (WIC) program sites, Head Start program sites, public housing 
144.25 	councils, child care centers, early childhood education and preschool program sites, legal 
144.26 	aid offices, and libraries. The commissioner shall ensure that applications are available 
144.27 	in languages other than English.
144.28 	(b) Local human service agencies, hospitals, and health care community clinics 
144.29 	receiving state funds must provide direct assistance in completing the application 
144.30 	form, including the free use of a copy machine and a drop box for applications. These 
144.31 	locations must ensure that the drop box is checked at least weekly and any applications 
144.32 	are submitted to the commissioner. The commissioner shall provide these entities with 
144.33 	an identification number to stamp on each application to identify the entity that provided 
144.34 	assistance. Other locations where applications are required to be available shall either 
144.35 	provide direct assistance in completing the application form or provide information on 
144.36 	where an applicant can receive application assistance.
145.1 	(c) Counties must offer applications and application assistance when providing 
145.2 	child support collection services.
145.3 	(d) Local public health agencies and counties that provide immunization clinics must 
145.4 	offer applications and application assistance during these clinics.
145.5 	(e) The commissioner shall coordinate with the commissioner of health to ensure 
145.6 	that maternal and child health outreach efforts include information on Minnesota health 
145.7 	care programs and application assistance, when needed.
145.8 		Subd. 4.Statewide toll-free telephone number. The commissioner shall provide 
145.9 	funds for a statewide toll-free telephone number to provide information on public and 
145.10 	private health coverage options and sources of free and low-cost health care. The 
145.11 	statewide telephone number must provide the option of obtaining this information in 
145.12 	languages other than English.
145.13 		Subd. 5.Incentive program. Beginning January 1, 2008, the commissioner 
145.14 	shall establish an incentive program for organizations that directly identify and assist 
145.15 	potential enrollees in filling out and submitting an application. For each applicant who is 
145.16 	successfully enrolled in MinnesotaCare, medical assistance, or general assistance medical 
145.17 	care, the commissioner, within the available appropriation, shall pay the organization 
145.18 	a $20 application assistance bonus. The organization may provide an applicant a gift 
145.19 	certificate or other incentive upon enrollment.
145.20 		Subd. 6.School districts. (a) At the beginning of each school year, a school district 
145.21 	shall provide information to each student on the availability of health care coverage 
145.22 	through the Minnesota health care programs.
145.23 	(b) For each child who is determined to be eligible for a free or reduced priced lunch, 
145.24 	the district shall provide the child's family with an application for the Minnesota health 
145.25 	care programs and information on how to obtain application assistance.
145.26 	(c) A district shall also ensure that applications and information on application 
145.27 	assistance are available at early childhood education sites and public schools located 
145.28 	within the district's jurisdiction. 
145.29 	(d) Each district shall designate an enrollment specialist to provide application 
145.30 	assistance and follow-up services with families who are eligible for the reduced or free 
145.31 	lunch program or who have indicated an interest in receiving information or an application 
145.32 	for the Minnesota health care program.
145.33 	(e) Each school district shall provide on their Web site a link to information on how 
145.34 	to obtain an application and application assistance.
145.35 		Subd. 7.Renewal notice. (a) Beginning December 1, 2007, the commissioner shall 
145.36 	mail a renewal notice to enrollees notifying the enrollees that the enrollees eligibility must 
146.1 	be renewed. A notice shall be sent at least 90 days prior to the renewal date and at least 
146.2 	60 days prior to the renewal date.
146.3 	(b) For enrollees who are receiving services through managed care plans, the 
146.4 	managed care plan must provide a follow-up renewal call at least 60 days prior to the 
146.5 	enrollees' renewal dates.
146.6 	(c) The commissioner shall include the end of coverage dates on the monthly rosters 
146.7 	of enrollees provided to managed care organizations.

146.8 	Sec. 3. [256.963] PRIMARY CARE ACCESS INITIATIVE.
146.9 		Subdivision 1.Establishment. (a) The commissioner shall award a grant to 
146.10 	implement in Hennepin and Ramsey Counties a Web-based primary care access pilot 
146.11 	project designed as a collaboration between private and public sectors to connect, where 
146.12 	appropriate, a patient with a primary care medical home, and schedule patients into 
146.13 	available community-based appointments as an alternative to nonemergency use of the 
146.14 	hospital emergency room. The grantee must establish a program that diverts patients 
146.15 	presenting at an emergency room for nonemergency care to more appropriate outpatient 
146.16 	settings. The program must refer the patient to an appropriate health care professional 
146.17 	based on the patient's health care needs and situation. The program must provide the 
146.18 	patient with a scheduled appointment that is timely, with an appropriate provider who is 
146.19 	conveniently located. If the patient is uninsured and potentially eligible for a Minnesota 
146.20 	health care program, the program must connect the patient to a primary care provider, 
146.21 	community clinic, or agency that can assist the patient with the application process. The 
146.22 	program must also ensure that discharged patients are connected with a community-based 
146.23 	primary care provider and assist in scheduling any necessary follow-up visits before 
146.24 	the patient is discharged.
146.25 	(b) The program must not require a provider to pay a fee for accepting charity care 
146.26 	patients or patients enrolled in a Minnesota public health care program.
146.27 		Subd. 2.Evaluation. (a) The grantee must report to the commissioner on a quarterly 
146.28 	basis the following information:
146.29 	(1) the total number of appointments available for scheduling by specialty;
146.30 	(2) the average length of time between scheduling and actual appointment;  
146.31 	(3) the total number of patients referred and whether the patient was insured or 
146.32 	uninsured; and
146.33 	(4) the total number of appointments resulting in visits completed and number of 
146.34 	patients continuing services with the referring clinic.
147.1 	(b) The commissioner, in consultation with the Minnesota Hospital Association, 
147.2 	shall conduct an evaluation of the emergency room diversion pilot project and submit the 
147.3 	results to the legislature by January 15, 2009. The evaluation shall compare the number of 
147.4 	nonemergency visits and repeat visits to hospital emergency rooms for the period before 
147.5 	the commencement of the project and one year after the commencement, and an estimate 
147.6 	of the costs saved from any documented reductions.

147.7 	Sec. 4. Minnesota Statutes 2006, section 256.969, subdivision 9, is amended to read:
147.8 		Subd. 9.Disproportionate numbers of low-income patients served. (a) For 
147.9 	admissions occurring on or after October 1, 1992, through December 31, 1992, the 
147.10 	medical assistance disproportionate population adjustment shall comply with federal law 
147.11 	and shall be paid to a hospital, excluding regional treatment centers and facilities of the 
147.12 	federal Indian Health Service, with a medical assistance inpatient utilization rate in excess 
147.13 	of the arithmetic mean. The adjustment must be determined as follows:
147.14 	(1) for a hospital with a medical assistance inpatient utilization rate above the 
147.15 	arithmetic mean for all hospitals excluding regional treatment centers and facilities of the 
147.16 	federal Indian Health Service but less than or equal to one standard deviation above the 
147.17 	mean, the adjustment must be determined by multiplying the total of the operating and 
147.18 	property payment rates by the difference between the hospital's actual medical assistance 
147.19 	inpatient utilization rate and the arithmetic mean for all hospitals excluding regional 
147.20 	treatment centers and facilities of the federal Indian Health Service; and
147.21 	(2) for a hospital with a medical assistance inpatient utilization rate above one 
147.22 	standard deviation above the mean, the adjustment must be determined by multiplying 
147.23 	the adjustment that would be determined under clause (1) for that hospital by 1.1. If 
147.24 	federal matching funds are not available for all adjustments under this subdivision, the 
147.25 	commissioner shall reduce payments on a pro rata basis so that all adjustments qualify for 
147.26 	federal match. The commissioner may establish a separate disproportionate population 
147.27 	operating payment rate adjustment under the general assistance medical care program. 
147.28 	For purposes of this subdivision medical assistance does not include general assistance 
147.29 	medical care. The commissioner shall report annually on the number of hospitals likely to 
147.30 	receive the adjustment authorized by this paragraph. The commissioner shall specifically 
147.31 	report on the adjustments received by public hospitals and public hospital corporations 
147.32 	located in cities of the first class.
147.33 	(b) For admissions occurring on or after July 1, 1993, the medical assistance 
147.34 	disproportionate population adjustment shall comply with federal law and shall be paid to 
147.35 	a hospital, excluding regional treatment centers and facilities of the federal Indian Health 
148.1 	Service, with a medical assistance inpatient utilization rate in excess of the arithmetic 
148.2 	mean. The adjustment must be determined as follows:
148.3 	(1) for a hospital with a medical assistance inpatient utilization rate above the 
148.4 	arithmetic mean for all hospitals excluding regional treatment centers and facilities of the 
148.5 	federal Indian Health Service but less than or equal to one standard deviation above the 
148.6 	mean, the adjustment must be determined by multiplying the total of the operating and 
148.7 	property payment rates by the difference between the hospital's actual medical assistance 
148.8 	inpatient utilization rate and the arithmetic mean for all hospitals excluding regional 
148.9 	treatment centers and facilities of the federal Indian Health Service;
148.10 	(2) for a hospital with a medical assistance inpatient utilization rate above one 
148.11 	standard deviation above the mean, the adjustment must be determined by multiplying 
148.12 	the adjustment that would be determined under clause (1) for that hospital by 1.1. The 
148.13 	commissioner may establish a separate disproportionate population operating payment 
148.14 	rate adjustment under the general assistance medical care program. For purposes of this 
148.15 	subdivision, medical assistance does not include general assistance medical care. The 
148.16 	commissioner shall report annually on the number of hospitals likely to receive the 
148.17 	adjustment authorized by this paragraph. The commissioner shall specifically report on 
148.18 	the adjustments received by public hospitals and public hospital corporations located 
148.19 	in cities of the first class;
148.20 	(3) for a hospital that had medical assistance fee-for-service payment volume during 
148.21 	calendar year 1991 in excess of 13 percent of total medical assistance fee-for-service 
148.22 	payment volume, a medical assistance disproportionate population adjustment shall be 
148.23 	paid in addition to any other disproportionate payment due under this subdivision as 
148.24 	follows: $1,515,000 due on the 15th of each month after noon, beginning July 15, 1995. 
148.25 	For a hospital that had medical assistance fee-for-service payment volume during calendar 
148.26 	year 1991 in excess of eight percent of total medical assistance fee-for-service payment 
148.27 	volume and was the primary hospital affiliated with the University of Minnesota, a 
148.28 	medical assistance disproportionate population adjustment shall be paid in addition to any 
148.29 	other disproportionate payment due under this subdivision as follows: $505,000 due on 
148.30 	the 15th of each month after noon, beginning July 15, 1995; and
148.31 	(4) effective August 1, 2005, the payments in paragraph (b), clause (3), shall be 
148.32 	reduced to zero.
148.33 	(c) The commissioner shall adjust rates paid to a health maintenance organization 
148.34 	under contract with the commissioner to reflect rate increases provided in paragraph (b), 
148.35 	clauses (1) and (2), on a nondiscounted hospital-specific basis but shall not adjust those 
148.36 	rates to reflect payments provided in clause (3).
149.1 	(d) If federal matching funds are not available for all adjustments under paragraph 
149.2 	(b), the commissioner shall reduce payments under paragraph (b), clauses (1) and (2), on a 
149.3 	pro rata basis so that all adjustments under paragraph (b) qualify for federal match.
149.4 	(e) For purposes of this subdivision, medical assistance does not include general 
149.5 	assistance medical care.
149.6 	(f) For hospital services occurring on or after July 1, 2005, to June 30, 2007, :
149.7 	(1) general assistance medical care expenditures for fee-for-service inpatient 
149.8 	and outpatient hospital payments made by the department and by prepaid health 
149.9 	plans participating in general assistance medical care shall be considered Medicaid 
149.10 	disproportionate share hospital payments, except as limited below:
149.11 	(1) (i) only the portion of Minnesota's disproportionate share hospital allotment 
149.12 	under section 1923(f) of the Social Security Act that is not spent on the disproportionate 
149.13 	population adjustments in paragraph (b), clauses (1) and (2), may be used for general 
149.14 	assistance medical care expenditures;
149.15 	(2) (ii) only those general assistance medical care expenditures made to hospitals that 
149.16 	qualify for disproportionate share payments under section 1923 of the Social Security Act 
149.17 	and the Medicaid state plan may be considered disproportionate share hospital payments;
149.18 	(3) (iii) only those general assistance medical care expenditures made to an 
149.19 	individual hospital that would not cause the hospital to exceed its individual hospital limits 
149.20 	under section 1923 of the Social Security Act may be considered; and
149.21 	(4) (iv) general assistance medical care expenditures may be considered only to the 
149.22 	extent of Minnesota's aggregate allotment under section 1923 of the Social Security Act.
149.23 	All hospitals and prepaid health plans participating in general assistance medical care 
149.24 	must provide any necessary expenditure, cost, and revenue information required by the 
149.25 	commissioner as necessary for purposes of obtaining federal Medicaid matching funds for 
149.26 	general assistance medical care expenditures; and
149.27 	(2) certified public expenditures made by Hennepin County Medical Center shall 
149.28 	be considered Medicaid disproportionate share hospital payments. Hennepin County 
149.29 	and Hennepin County Medical Center shall report by June 15, 2007, on payments made 
149.30 	beginning July 1, 2005, or another date specified by the commissioner, that may qualify 
149.31 	for reimbursement under federal law. Based on these reports, the commissioner shall 
149.32 	apply for federal matching funds.
149.33 	(g) Upon federal approval of the related state plan amendment, paragraph (f) is 
149.34 	effective retroactively from July 1, 2005, or the earliest effective date approved by the 
149.35 	Centers for Medicare and Medicaid Services.

150.1 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2005.

150.2 	Sec. 5. Minnesota Statutes 2006, section 256.969, subdivision 27, is amended to read:
150.3 		Subd. 27.Quarterly payment adjustment. (a) In addition to any other payment 
150.4 	under this section, the commissioner shall make the following payments effective July 
150.5 	1, 2007:
150.6 	(1) for a hospital located in Minnesota and not eligible for payments under 
150.7 	subdivision 20, with a medical assistance inpatient utilization rate greater than 17.8 
150.8 	percent of total patient days as of the base year in effect on July 1, 2005, a payment equal 
150.9 	to 13 percent of the total of the operating and property payment rates;
150.10 	(2) for a hospital located in Minnesota in a specified urban area outside of the 
150.11 	seven-county metropolitan area and not eligible for payments under subdivision 20, with 
150.12 	a medical assistance inpatient utilization rate less than or equal to 17.8 percent of total 
150.13 	patient days as of the base year in effect on July 1, 2005, a payment equal to ten percent 
150.14 	of the total of the operating and property payment rates. For purposes of this clause, the 
150.15 	following cities are specified urban areas: Detroit Lakes, Rochester, Willmar, Alexandria, 
150.16 	Austin, Cambridge, Brainerd, Hibbing, Mankato, Duluth, St. Cloud, Grand Rapids, 
150.17 	Wyoming, Fergus Falls, Albert Lea, Winona, Virginia, Thief River Falls, and Wadena; and
150.18 	(3) for a hospital located in Minnesota but not located in a specified urban area 
150.19 	under clause (2), with a medical assistance inpatient utilization rate less than or equal to 
150.20 	17.8 percent of total patient days as of the base year in effect on July 1, 2005, a payment 
150.21 	equal to four percent of the total of the operating and property payment rates. A hospital 
150.22 	located in Woodbury and not in existence during the base year shall be reimbursed under 
150.23 	this clause.; and
150.24 	(4) in addition to any payments under clauses (1) to (3), for a hospital located in 
150.25 	Minnesota and not eligible for payments under subdivision 20 with a medical assistance 
150.26 	inpatient utilization rate of 17.9 percent of total patient days as of the base year in effect 
150.27 	on July 1, 2005, a payment equal to eight percent of the total of the operating and property 
150.28 	payment rates, and for a hospital located in Minnesota and not eligible for payments 
150.29 	under subdivision 20 with a medical assistance inpatient utilization rate of 59.6 percent 
150.30 	of total patient days as of the base year in effect on July 1, 2005, a payment equal to 
150.31 	nine percent of the total of the operating and property payment rates. After making any 
150.32 	ratable adjustments required under paragraph (b), the commissioner shall proportionately 
150.33 	reduce payments under clauses (2) and (3) by an amount needed to make payments under 
150.34 	this clause.
151.1 	(b) The state share of payments under paragraph (a) shall be equal to federal 
151.2 	reimbursements to the commissioner to reimburse nonstate expenditures reported under 
151.3 	section 256B.199. The commissioner shall ratably reduce or increase payments under this 
151.4 	subdivision in order to ensure that these payments equal the amount of reimbursement 
151.5 	received by the commissioner under section 256B.199, except that payments shall be 
151.6 	ratably reduced by an amount equivalent to the state share of a four percent reduction in 
151.7 	MinnesotaCare and medical assistance payments for inpatient hospital services. Effective 
151.8 	July 1, 2009, the ratable reduction shall be equivalent to the state share of a three percent 
151.9 	reduction in these payments.
151.10 	(c) The payments under paragraph (a) shall be paid quarterly based on each hospital's 
151.11 	operating and property payments from the second previous quarter, beginning on July 
151.12 	15, 2007, or upon federal approval of federal reimbursements under section 256B.199, 
151.13 	whichever occurs later.
151.14 	(d) The commissioner shall not adjust rates paid to a prepaid health plan under 
151.15 	contract with the commissioner to reflect payments provided in paragraph (a).
151.16 	(e) The commissioner shall maximize the use of available federal money for 
151.17 	disproportionate share hospital payments and shall maximize payments to qualifying 
151.18 	hospitals. In order to accomplish these purposes, the commissioner may, in consultation 
151.19 	with the nonstate entities identified in section 256B.199, adjust, on a pro rata basis 
151.20 	if feasible, the amounts reported by nonstate entities under section 256B.199 when 
151.21 	application for reimbursement is made to the federal government, and otherwise adjust 
151.22 	the provisions of this subdivision. The commissioner shall utilize a settlement process 
151.23 	based on finalized data to maximize revenue under section 256B.199 and payments 
151.24 	under this section.
151.25 	(f) By January 15 of each year, beginning January 15, 2006, the commissioner 
151.26 	shall report to the chairs of the house and senate finance committees and divisions with 
151.27 	jurisdiction over funding for the Department of Human Services the following estimates 
151.28 	for the current and upcoming federal and state fiscal years:
151.29 	(1) the difference between the Medicare upper payment limit and actual or 
151.30 	anticipated medical assistance payments for hospital services;
151.31 	(2) the amount of federal disproportionate share hospital funding available to 
151.32 	Minnesota and the amount expected to be claimed by the state; and
151.33 	(3) the methodology used to calculate the results reported for clauses (1) and (2).
151.34 	(g) For purposes of this subdivision, medical assistance does not include general 
151.35 	assistance medical care.
152.1 	(h) This section sunsets on June 30, 2009. The commissioner shall report to 
152.2 	the legislature by December 15, 2008, with recommendations for maximizing federal 
152.3 	disproportionate share hospital payments after June 30, 2009.

152.4 	Sec. 6. Minnesota Statutes 2006, section 256B.04, subdivision 14, is amended to read:
152.5 		Subd. 14.Competitive bidding. (a) When determined to be effective, economical, 
152.6 	and feasible, the commissioner may utilize volume purchase through competitive bidding 
152.7 	and negotiation under the provisions of chapter 16C, to provide items under the medical 
152.8 	assistance program including but not limited to the following:
152.9 	(1) eyeglasses;
152.10 	(2) oxygen. The commissioner shall provide for oxygen needed in an emergency 
152.11 	situation on a short-term basis, until the vendor can obtain the necessary supply from 
152.12 	the contract dealer;
152.13 	(3) hearing aids and supplies; and
152.14 	(4) durable medical equipment, including but not limited to:
152.15 	(i) hospital beds;
152.16 	(ii) commodes;
152.17 	(iii) glide-about chairs;
152.18 	(iv) patient lift apparatus;
152.19 	(v) wheelchairs and accessories;
152.20 	(vi) oxygen administration equipment;
152.21 	(vii) respiratory therapy equipment;
152.22 	(viii) electronic diagnostic, therapeutic and life support systems;
152.23 	(5) specialnonemergency medical transportation services level of need 
152.24 	determinations, disbursement of public transportation passes and tokens, and volunteer 
152.25 	and recipient mileage and parking reimbursements; and
152.26 	(6) drugs.
152.27 	(b) Rate changes under this chapter and chapters 256D and 256L do not affect 
152.28 	contract payments under this subdivision unless specifically identified.
152.29 	(c) The commissioner may not utilize volume purchase through competitive bidding 
152.30 	and negotiation for special transportation services under the provisions of chapter 16C.

152.31 	Sec. 7. Minnesota Statutes 2006, section 256B.04, is amended by adding a subdivision 
152.32 	to read:
152.33 		Subd. 14a.Level of need determination. Nonemergency medical transportation 
152.34 	level of need determinations must be performed by a physician, a registered nurse working 
153.1 	under direct supervision of a physician, a physician's assistant, a nurse practitioner, a 
153.2 	licensed practical nurse, or a discharge planner. Nonemergency medical transportation 
153.3 	level of need determinations must not be performed more than semiannually on any 
153.4 	individual, unless the individual's circumstances have sufficiently changed so as to require 
153.5 	a new level of need determination. Individuals residing in licensed nursing facilities are 
153.6 	exempt from a level of need determination and are eligible for special transportation 
153.7 	services until the individual no longer resides in a licensed nursing facility. If a person 
153.8 	authorized by this subdivision to perform a level of need determination determines that an 
153.9 	individual requires stretcher transportation, the individual is presumed to maintain that 
153.10 	level of need until otherwise determined by a person authorized to perform a level of need 
153.11 	determination, or for six months, whichever is sooner.

153.12 	Sec. 8. Minnesota Statutes 2006, section 256B.056, subdivision 10, is amended to read:
153.13 		Subd. 10.Eligibility verification. (a) The commissioner shall require women who 
153.14 	are applying for the continuation of medical assistance coverage following the end of the 
153.15 	60-day postpartum period to update their income and asset information and to submit 
153.16 	any required income or asset verification.
153.17 	(b) The commissioner shall determine the eligibility of private-sector health care 
153.18 	coverage for infants less than one year of age eligible under section 256B.055, subdivision 
153.19 	10, or 256B.057, subdivision 1, paragraph (d), and shall pay for private-sector coverage 
153.20 	if this is determined to be cost-effective.
153.21 	(c) The commissioner shall modify the application for Minnesota health care 
153.22 	programs to require more detailed information related to verification of assets and income, 
153.23 	and shall verify assets and income for all applicants, and for all recipients upon renewal.
153.24 	(d) The commissioner shall require Minnesota health care program recipients to 
153.25 	report new or an increase in earned income within ten days of the change, and to verify new 
153.26 	or an increase in earned income that affects eligibility within ten days of notification by 
153.27 	the agency that the new or increased earned income affects eligibility. Recipients who fail 
153.28 	to verify new or an increase in earned income that affects eligibility shall be disenrolled.

153.29 	Sec. 9. Minnesota Statutes 2006, section 256B.0625, subdivision 3f, is amended to 
153.30 	read:
153.31 		Subd. 3f.Circumcision for newborns. Newborn Circumcision is not covered, 
153.32 	unless the procedure is medically necessary or required because of a well-established 
153.33 	religious practice.

154.1 	Sec. 10. Minnesota Statutes 2006, section 256B.0631, subdivision 1, is amended to 
154.2 	read:
154.3 		Subdivision 1.Co-payments. (a) Except as provided in subdivision 2, the medical 
154.4 	assistance benefit plan shall include the following co-payments for all recipients, effective 
154.5 	for services provided on or after October 1, 2003, and before January 1, 2009:
154.6 	(1) $3 per nonpreventive visit. For purposes of this subdivision, a visit means an 
154.7 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
154.8 	established illness, and which is delivered in an ambulatory setting by a physician or 
154.9 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
154.10 	audiologist, optician, or optometrist;
154.11 	(2) $3 for eyeglasses;
154.12 	(3) $6 for nonemergency visits to a hospital-based emergency room; and
154.13 	(4) $3 per brand-name drug prescription and $1 per generic drug prescription, 
154.14 	subject to a $12 per month maximum for prescription drug co-payments. No co-payments 
154.15 	shall apply to antipsychotic drugs when used for the treatment of mental illness.
154.16 	(b) Except as provided in subdivision 2, the medical assistance benefit plan shall 
154.17 	include the following co-payments for all recipients, effective for services provided on 
154.18 	or after January 1, 2009:
154.19 	(1) $6 for nonemergency visits to a hospital-based emergency room; and
154.20 	(2) $3 per brand-name drug prescription and $1 per generic drug prescription, 
154.21 	subject to a $7 per month maximum for prescription drug co-payments. No co-payments 
154.22 	shall apply to antipsychotic drugs when used for the treatment of mental illness.
154.23 	(c) Recipients of medical assistance are responsible for all co-payments in this 
154.24 	subdivision.

154.25 	Sec. 11. Minnesota Statutes 2006, section 256B.0631, subdivision 3, is amended to 
154.26 	read:
154.27 		Subd. 3.Collection. (a) The medical assistance reimbursement to the provider shall 
154.28 	be reduced by the amount of the co-payment, except that reimbursement for prescription 
154.29 	drugs shall not be reduced once a recipient has reached the $12 per month maximum or 
154.30 	the $7 per month maximum effective January 1, 2009, for prescription drug co-payments. 
154.31 	(b) The provider collects the co-payment from the recipient. Providers may not 
154.32 	deny services to recipients who are unable to pay the co-payment, except as provided in 
154.33 	subdivision 4.
155.1 	(c) Medical assistance reimbursement to fee-for-service providers and payments to 
155.2 	managed care plans shall not be increased as a result of the removal of the co-payments 
155.3 	effective January 1, 2009.

155.4 	Sec. 12. Minnesota Statutes 2006, section 256B.0644, is amended to read:
155.5 	256B.0644 REIMBURSEMENT UNDER OTHER STATE HEALTH CARE 
155.6 	PROGRAMS.
155.7 	(a) A vendor of medical care, as defined in section 256B.02, subdivision 7, and a 
155.8 	health maintenance organization, as defined in chapter 62D, must participate as a provider 
155.9 	or contractor in the medical assistance program, general assistance medical care program, 
155.10 	and MinnesotaCare as a condition of participating as a provider in health insurance plans 
155.11 	and programs or contractor for state employees established under section 43A.18, the 
155.12 	public employees insurance program under section 43A.316, for health insurance plans 
155.13 	offered to local statutory or home rule charter city, county, and school district employees, 
155.14 	the workers' compensation system under section 176.135, and insurance plans provided 
155.15 	through the Minnesota Comprehensive Health Association under sections 62E.01 to 
155.16 	62E.19. The limitations on insurance plans offered to local government employees shall 
155.17 	not be applicable in geographic areas where provider participation is limited by managed 
155.18 	care contracts with the Department of Human Services. 
155.19 	(b) For providers other than health maintenance organizations, participation in the 
155.20 	medical assistance program means that:
155.21 	 (1) the provider accepts new medical assistance, general assistance medical care, 
155.22 	and MinnesotaCare patients or;
155.23 	(2) for providers other than dental service providers, at least 20 percent of the 
155.24 	provider's patients are covered by medical assistance, general assistance medical care, and 
155.25 	MinnesotaCare as their primary source of coverage, or; or
155.26 	(3) for dental service providers, at least ten percent of the provider's patients are 
155.27 	covered by medical assistance, general assistance medical care, and MinnesotaCare as 
155.28 	their primary source of coverage, or the provider accepts new medical assistance and 
155.29 	MinnesotaCare patients who are children with special health care needs. For purposes 
155.30 	of this section, "children with special health care needs" means children up to age 18 
155.31 	who: (i) require health and related services beyond that required by children generally; 
155.32 	and (ii) have or are at risk for a chronic physical, developmental, behavioral, or emotional 
155.33 	condition, including: bleeding and coagulation disorders; immunodeficiency disorders; 
155.34 	cancer; endocrinopathy; developmental disabilities; epilepsy, cerebral palsy, and other 
155.35 	neurological diseases; visual impairment or deafness; Down syndrome and other genetic 
156.1 	disorders; autism; fetal alcohol syndrome; and other conditions designated by the 
156.2 	commissioner after consultation with representatives of pediatric dental providers and 
156.3 	consumers. 
156.4 	(c) Patients seen on a volunteer basis by the provider at a location other than the 
156.5 	provider's usual place of practice may be considered in meeting this the participation 
156.6 	requirement in this section. The commissioner shall establish participation requirements 
156.7 	for health maintenance organizations. The commissioner shall provide lists of 
156.8 	participating medical assistance providers on a quarterly basis to the commissioner of 
156.9 	employee relations, the commissioner of labor and industry, and the commissioner of 
156.10 	commerce. Each of the commissioners shall develop and implement procedures to exclude 
156.11 	as participating providers in the program or programs under their jurisdiction those 
156.12 	providers who do not participate in the medical assistance program. The commissioner 
156.13 	of employee relations shall implement this section through contracts with participating 
156.14 	health and dental carriers. 

156.15 	Sec. 13. Minnesota Statutes 2006, section 256B.199, is amended to read:
156.16 	256B.199 PAYMENTS REPORTED BY GOVERNMENTAL ENTITIES.
156.17 	(a) Effective July 1, 2007, the commissioner shall apply for federal matching funds 
156.18 	for the expenditures in paragraphs (b) and (c).
156.19 	(b) The commissioner shall apply for federal matching funds for certified public 
156.20 	expenditures as follows:
156.21 	(1) Hennepin County, Hennepin County Medical Center, Ramsey County, Regions 
156.22 	Hospital, the University of Minnesota, and Fairview-University Medical Center shall 
156.23 	report quarterly to the commissioner beginning June 1, 2007, payments made during the 
156.24 	second previous quarter that may qualify for reimbursement under federal law.;
156.25 	(b) (2)  based on these reports, the commissioner shall apply for federal matching 
156.26 	funds. These funds are appropriated to the commissioner for the payments under section 
156.27 	256.969, subdivision 27.; and
156.28 	(c) (3) by May 1 of each year, beginning May 1, 2007, the commissioner shall inform 
156.29 	the nonstate entities listed in paragraph (a) of the amount of federal disproportionate share 
156.30 	hospital payment money expected to be available in the current federal fiscal year.
156.31 	(c) The commissioner shall apply for federal matching funds for general assistance 
156.32 	medical care expenditures as follows:
156.33 	(1) for hospital services occurring on or after July 1, 2007, general assistance medical 
156.34 	care expenditures for fee-for-service inpatient and outpatient hospital payments made by 
156.35 	the department shall be used to apply for federal matching funds, except as limited below:
157.1 	(i) only those general assistance medical care expenditures made to an individual 
157.2 	hospital that would not cause the hospital to exceed its individual hospital limits under 
157.3 	section 1923 of the Social Security Act may be considered; and
157.4 	(ii) general assistance medical care expenditures may be considered only to the extent 
157.5 	of Minnesota's aggregate allotment under section 1923 of the Social Security Act; and
157.6 	(2) all hospitals must provide any necessary expenditure, cost, and revenue 
157.7 	information required by the commissioner as necessary for purposes of obtaining federal 
157.8 	Medicaid matching funds for general assistance medical care expenditures.
157.9 	(d) This section sunsets on June 30, 2009. The commissioner shall report to 
157.10 	the legislature by December 15, 2008, with recommendations for maximizing federal 
157.11 	disproportionate share hospital payments after June 30, 2009.

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

157.13 	Sec. 14. Minnesota Statutes 2006, section 256B.76, is amended to read:
157.14 	256B.76 PHYSICIAN AND DENTAL REIMBURSEMENT.
157.15 	(a) Effective for services rendered on or after October 1, 1992, the commissioner 
157.16 	shall make payments for physician services as follows:
157.17 	(1) payment for level one Centers for Medicare and Medicaid Services' common 
157.18 	procedural coding system codes titled "office and other outpatient services," "preventive 
157.19 	medicine new and established patient," "delivery, antepartum, and postpartum care," 
157.20 	"critical care," cesarean delivery and pharmacologic management provided to psychiatric 
157.21 	patients, and level three codes for enhanced services for prenatal high risk, shall be paid 
157.22 	at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 
157.23 	30, 1992. If the rate on any procedure code within these categories is different than the 
157.24 	rate that would have been paid under the methodology in section 256B.74, subdivision 2, 
157.25 	then the larger rate shall be paid; 
157.26 	(2) payments for all other services shall be paid at the lower of (i) submitted charges, 
157.27 	or (ii) 15.4 percent above the rate in effect on June 30, 1992;
157.28 	(3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th 
157.29 	percentile of 1989, less the percent in aggregate necessary to equal the above increases 
157.30 	except that payment rates for home health agency services shall be the rates in effect 
157.31 	on September 30, 1992;
157.32 	(4) effective for services rendered on or after January 1, 2000, payment rates for 
157.33 	physician and professional services shall be increased by three percent over the rates in 
158.1 	effect on December 31, 1999, except for home health agency and family planning agency 
158.2 	services; and
158.3 	(5) the increases in clause (4) shall be implemented January 1, 2000, for managed 
158.4 	care.
158.5 	(b) Effective for services rendered on or after October 1, 1992, the commissioner 
158.6 	shall make payments for dental services as follows:
158.7 	(1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25 
158.8 	percent above the rate in effect on June 30, 1992;
158.9 	(2) dental rates shall be converted from the 50th percentile of 1982 to the 50th 
158.10 	percentile of 1989, less the percent in aggregate necessary to equal the above increases;
158.11 	(3) effective for services rendered on or after January 1, 2000, payment rates for 
158.12 	dental services shall be increased by three percent over the rates in effect on December 
158.13 	31, 1999;
158.14 	(4) the commissioner shall award grants to community clinics or other nonprofit 
158.15 	community organizations, political subdivisions, professional associations, or other 
158.16 	organizations that demonstrate the ability to provide dental services effectively to public 
158.17 	program recipients. Grants may be used to fund the costs related to coordinating access for 
158.18 	recipients, developing and implementing patient care criteria, upgrading or establishing 
158.19 	new facilities, acquiring furnishings or equipment, recruiting new providers, or other 
158.20 	development costs that will improve access to dental care in a region. In awarding grants, 
158.21 	the commissioner shall give priority to applicants that plan to serve areas of the state in 
158.22 	which the number of dental providers is not currently sufficient to meet the needs of 
158.23 	recipients of public programs or uninsured individuals. The commissioner shall consider 
158.24 	the following in awarding the grants:
158.25 	(i) potential to successfully increase access to an underserved population;
158.26 	(ii) the ability to raise matching funds;
158.27 	(iii) the long-term viability of the project to improve access beyond the period 
158.28 	of initial funding;
158.29 	(iv) the efficiency in the use of the funding; and
158.30 	(v) the experience of the proposers in providing services to the target population.
158.31 	The commissioner shall monitor the grants and may terminate a grant if the grantee 
158.32 	does not increase dental access for public program recipients. The commissioner shall 
158.33 	consider grants for the following:
158.34 	(i) implementation of new programs or continued expansion of current access 
158.35 	programs that have demonstrated success in providing dental services in underserved 
158.36 	areas;
159.1 	(ii) a pilot program for utilizing hygienists outside of a traditional dental office to 
159.2 	provide dental hygiene services; and
159.3 	(iii) a program that organizes a network of volunteer dentists, establishes a system to 
159.4 	refer eligible individuals to volunteer dentists, and through that network provides donated 
159.5 	dental care services to public program recipients or uninsured individuals;
159.6 	(5) beginning October 1, 1999, the payment for tooth sealants and fluoride treatments 
159.7 	shall be the lower of (i) submitted charge, or (ii) 80 percent of median 1997 charges;
159.8 	(6) the increases listed in clauses (3) and (5) shall be implemented January 1, 2000, 
159.9 	for managed care; and
159.10 	(7) effective for services provided on or after January 1, 2002, payment for 
159.11 	diagnostic examinations and dental x-rays provided to children under age 21 shall be the 
159.12 	lower of (i) the submitted charge, or (ii) 85 percent of median 1999 charges.
159.13 	(c) Effective for dental services rendered on or after January 1, 2002, the 
159.14 	commissioner may, within the limits of available appropriation,shall increase 
159.15 	reimbursements to dentists and dental clinics deemed by the commissioner to be critical 
159.16 	access dental providers. Reimbursement to a critical access dental provider may be 
159.17 	increased by not more than 50 percent above the reimbursement rate that would otherwise 
159.18 	be paid to the provider. Payments to health plan companies shall be adjusted toFor dental 
159.19 	services rendered on or after July 1, 2007, the commissioner shall increase reimbursement 
159.20 	by 30 percent above the reimbursement rate that would otherwise be paid to the critical 
159.21 	access dental provider. The commissioner shall pay the health plan companies in amounts 
159.22 	sufficient to reflect increased reimbursements to critical access dental providers as 
159.23 	approved by the commissioner. In determining which dentists and dental clinics shall be 
159.24 	deemed critical access dental providers, the commissioner shall review:
159.25 	(1) the utilization rate in the service area in which the dentist or dental clinic operates 
159.26 	for dental services to patients covered by medical assistance, general assistance medical 
159.27 	care, or MinnesotaCare as their primary source of coverage;
159.28 	(2) the level of services provided by the dentist or dental clinic to patients covered 
159.29 	by medical assistance, general assistance medical care, or MinnesotaCare as their primary 
159.30 	source of coverage; and
159.31 	(3) whether the level of services provided by the dentist or dental clinic is critical to 
159.32 	maintaining adequate levels of patient access within the service area.
159.33 	In the absence of a critical access dental provider in a service area, the commissioner may 
159.34 	designate a dentist or dental clinic as a critical access dental provider if the dentist or 
159.35 	dental clinic is willing to provide care to patients covered by medical assistance, general 
160.1 	assistance medical care, or MinnesotaCare at a level which significantly increases access 
160.2 	to dental care in the service area.
160.3 	The commissioner shall annually establish a reimbursement schedule for critical 
160.4 	access dental providers and provider-specific limits on total reimbursement received 
160.5 	under the reimbursement schedule, and shall notify each critical access dental provider 
160.6 	of the schedule and limit.
160.7 	(d) An entity that operates both a Medicare certified comprehensive outpatient 
160.8 	rehabilitation facility and a facility which was certified prior to January 1, 1993, that is 
160.9 	licensed under Minnesota Rules, parts 9570.2000 to 9570.3600, and for whom at least 33 
160.10 	percent of the clients receiving rehabilitation services in the most recent calendar year are 
160.11 	medical assistance recipients, shall be reimbursed by the commissioner for rehabilitation 
160.12 	services at rates that are 38 percent greater than the maximum reimbursement rate 
160.13 	allowed under paragraph (a), clause (2), when those services are (1) provided within the 
160.14 	comprehensive outpatient rehabilitation facility and (2) provided to residents of nursing 
160.15 	facilities owned by the entity.
160.16 	(e) Effective for services rendered on or after January 1, 2007, the commissioner 
160.17 	shall make payments for physician and professional services based on the Medicare 
160.18 	relative value units (RVU's). This change shall be budget neutral and the cost of 
160.19 	implementing RVU's will be incorporated in the established conversion factor.

160.20 	Sec. 15. [256B.764] REIMBURSEMENT FOR FAMILY PLANNING SERVICES.
160.21 	Effective for services rendered on or after July 1, 2007, payment rates for family 
160.22 	planning services shall be increased by 25 percent over the rates in effect June 30, 2007, 
160.23 	when these services are provided by a community clinic as defined in section 145.9268, 
160.24 	subdivision 1.

160.25 	Sec. 16. Minnesota Statutes 2006, section 256D.03, subdivision 3, is amended to read:
160.26 		Subd. 3.General assistance medical care; eligibility. (a) General assistance 
160.27 	medical care may be paid for any person who is not eligible for medical assistance under 
160.28 	chapter 256B, including eligibility for medical assistance based on a spenddown of excess 
160.29 	income according to section 256B.056, subdivision 5, or MinnesotaCare as defined in 
160.30 	paragraph (b), except as provided in paragraph (c), and:
160.31 	(1) who is receiving assistance under section 256D.05, except for families with 
160.32 	children who are eligible under Minnesota family investment program (MFIP), or who is 
160.33 	having a payment made on the person's behalf under sections 256I.01 to 256I.06; or
160.34 	(2) who is a resident of Minnesota; and
161.1 	(i) who has gross countable income not in excess of 75 percent of the federal poverty 
161.2 	guidelines for the family size, using a six-month budget period and whose equity in assets 
161.3 	is not in excess of $1,000 per assistance unit. General assistance medical care is not 
161.4 	available for applicants or enrollees who are otherwise eligible for medical assistance but 
161.5 	fail to verify their assets. Enrollees who become eligible for medical assistance shall be 
161.6 	terminated and transferred to medical assistance. Exempt assets, the reduction of excess 
161.7 	assets, and the waiver of excess assets must conform to the medical assistance program in 
161.8 	section 256B.056, subdivision 3, with the following exception: the maximum amount of 
161.9 	undistributed funds in a trust that could be distributed to or on behalf of the beneficiary by 
161.10 	the trustee, assuming the full exercise of the trustee's discretion under the terms of the 
161.11 	trust, must be applied toward the asset maximum;
161.12 	(ii) who has gross countable income above 75 percent of the federal poverty 
161.13 	guidelines but not in excess of 175 percent of the federal poverty guidelines for the 
161.14 	family size, using a six-month budget period, whose equity in assets is not in excess 
161.15 	of the limits in section 256B.056, subdivision 3c, and who applies during an inpatient 
161.16 	hospitalization; or
161.17 	(iii) the commissioner shall adjust the income standards under this section each July 
161.18 	1 by the annual update of the federal poverty guidelines following publication by the 
161.19 	United States Department of Health and Human Services.
161.20 	(b) Effective for applications and renewals processed on or after September 1, 2006, 
161.21 	general assistance medical care may not be paid for applicants or recipients who are adults 
161.22 	with dependent children under 21 whose gross family income is equal to or less than 275 
161.23 	percent of the federal poverty guidelines who are not described in paragraph (e).
161.24 	(c) Effective for applications and renewals processed on or after September 1, 2006, 
161.25 	general assistance medical care may be paid for applicants and recipients who meet all 
161.26 	eligibility requirements of paragraph (a), clause (2), item (i), for a temporary period 
161.27 	beginning the date of application. Immediately following approval of general assistance 
161.28 	medical care, enrollees shall be enrolled in MinnesotaCare under section 256L.04, 
161.29 	subdivision 7, with covered services as provided in section 256L.03 for the rest of the 
161.30 	six-month general assistance medical care eligibility period, until their six-month renewal. 
161.31 	(d) To be eligible for general assistance medical care following enrollment in 
161.32 	MinnesotaCare as required by paragraph (c), an individual must complete a new 
161.33 	application.
161.34 	(e) Applicants and recipients eligible under paragraph (a), clause (1); who have 
161.35 	applied for and are awaiting a determination of blindness or disability by the state medical 
161.36 	review team or a determination of eligibility for Supplemental Security Income or Social 
162.1 	Security Disability Insurance by the Social Security Administration; who fail to meet the 
162.2 	requirements of section 256L.09, subdivision 2; who are homeless as defined by United 
162.3 	States Code, title 42, section 11301, et seq.;  who are classified as end-stage renal disease 
162.4 	beneficiaries in the Medicare program; who are enrolled in private health care coverage as 
162.5 	defined in section 256B.02, subdivision 9; who are eligible under paragraph (j); or who 
162.6 	receive treatment funded pursuant to section 254B.02 are exempt from the MinnesotaCare 
162.7 	enrollment requirements of this subdivision.
162.8 	(f) For applications received on or after October 1, 2003, eligibility may begin no 
162.9 	earlier than the date of application. For individuals eligible under paragraph (a), clause 
162.10 	(2), item (i), a redetermination of eligibility must occur every 12 months. Individuals are 
162.11 	eligible under paragraph (a), clause (2), item (ii), only during inpatient hospitalization but 
162.12 	may reapply if there is a subsequent period of inpatient hospitalization.
162.13 	(g) Beginning September 1, 2006, Minnesota health care program applications and 
162.14 	renewals completed by recipients and applicants who are persons described in paragraph 
162.15 	(c) and submitted to the county agency shall be determined for MinnesotaCare eligibility 
162.16 	by the county agency. If all other eligibility requirements of this subdivision are met, 
162.17 	eligibility for general assistance medical care shall be available in any month during which 
162.18 	MinnesotaCare enrollment is pending. Upon notification of eligibility for MinnesotaCare, 
162.19 	notice of termination for eligibility for general assistance medical care shall be sent to 
162.20 	an applicant or recipient. If all other eligibility requirements of this subdivision are 
162.21 	met, eligibility for general assistance medical care shall be available until enrollment in 
162.22 	MinnesotaCare subject to the provisions of paragraphs (c), (e), and (f).
162.23 	(h) The date of an initial Minnesota health care program application necessary to 
162.24 	begin a determination of eligibility shall be the date the applicant has provided a name, 
162.25 	address, and Social Security number, signed and dated, to the county agency or the 
162.26 	Department of Human Services. If the applicant is unable to provide a name, address, 
162.27 	Social Security number, and signature when health care is delivered due to a medical 
162.28 	condition or disability, a health care provider may act on an applicant's behalf to establish 
162.29 	the date of an initial Minnesota health care program application by providing the county 
162.30 	agency or Department of Human Services with provider identification and a temporary 
162.31 	unique identifier for the applicant. The applicant must complete the remainder of the 
162.32 	application and provide necessary verification before eligibility can be determined. The 
162.33 	county agency must assist the applicant in obtaining verification if necessary.
162.34 	(i) County agencies are authorized to use all automated databases containing 
162.35 	information regarding recipients' or applicants' income in order to determine eligibility for 
163.1 	general assistance medical care or MinnesotaCare. Such use shall be considered sufficient 
163.2 	in order to determine eligibility and premium payments by the county agency.
163.3 	(j) General assistance medical care is not available for a person in a correctional 
163.4 	facility unless the person is detained by law for less than one year in a county correctional 
163.5 	or detention facility as a person accused or convicted of a crime, or admitted as an 
163.6 	inpatient to a hospital on a criminal hold order, and the person is a recipient of general 
163.7 	assistance medical care at the time the person is detained by law or admitted on a criminal 
163.8 	hold order and as long as the person continues to meet other eligibility requirements 
163.9 	of this subdivision.
163.10 	(k) General assistance medical care is not available for applicants or recipients who 
163.11 	do not cooperate with the county agency to meet the requirements of medical assistance.
163.12 	(l) In determining the amount of assets of an individual eligible under paragraph 
163.13 	(a), clause (2), item (i), there shall be included any asset or interest in an asset, including 
163.14 	an asset excluded under paragraph (a), that was given away, sold, or disposed of for 
163.15 	less than fair market value within the 60 months preceding application for general 
163.16 	assistance medical care or during the period of eligibility. Any transfer described in this 
163.17 	paragraph shall be presumed to have been for the purpose of establishing eligibility for 
163.18 	general assistance medical care, unless the individual furnishes convincing evidence to 
163.19 	establish that the transaction was exclusively for another purpose. For purposes of this 
163.20 	paragraph, the value of the asset or interest shall be the fair market value at the time it 
163.21 	was given away, sold, or disposed of, less the amount of compensation received. For any 
163.22 	uncompensated transfer, the number of months of ineligibility, including partial months, 
163.23 	shall be calculated by dividing the uncompensated transfer amount by the average monthly 
163.24 	per person payment made by the medical assistance program to skilled nursing facilities 
163.25 	for the previous calendar year. The individual shall remain ineligible until this fixed period 
163.26 	has expired. The period of ineligibility may exceed 30 months, and a reapplication for 
163.27 	benefits after 30 months from the date of the transfer shall not result in eligibility unless 
163.28 	and until the period of ineligibility has expired. The period of ineligibility begins in the 
163.29 	month the transfer was reported to the county agency, or if the transfer was not reported, 
163.30 	the month in which the county agency discovered the transfer, whichever comes first. For 
163.31 	applicants, the period of ineligibility begins on the date of the first approved application.
163.32 	(m) When determining eligibility for any state benefits under this subdivision, 
163.33 	the income and resources of all noncitizens shall be deemed to include their sponsor's 
163.34 	income and resources as defined in the Personal Responsibility and Work Opportunity 
163.35 	Reconciliation Act of 1996, title IV, Public Law 104-193, sections 421 and 422, and 
163.36 	subsequently set out in federal rules.
164.1 	(n) Undocumented noncitizens and nonimmigrants are ineligible for general 
164.2 	assistance medical care. For purposes of this subdivision, a nonimmigrant is an individual 
164.3 	in one or more of the classes listed in United States Code, title 8, section 1101(a)(15), and 
164.4 	an undocumented noncitizen is an individual who resides in the United States without the 
164.5 	approval or acquiescence of the Immigration and Naturalization Service.
164.6 	(o) Notwithstanding any other provision of law, a noncitizen who is ineligible for 
164.7 	medical assistance due to the deeming of a sponsor's income and resources, is ineligible 
164.8 	for general assistance medical care.
164.9 	(p) Effective July 1, 2003, general assistance medical care emergency services end.

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

164.11 	Sec. 17. Minnesota Statutes 2006, section 256D.03, subdivision 4, is amended to read:
164.12 		Subd. 4.General assistance medical care; services. (a)(i) For a person who is 
164.13 	eligible under subdivision 3, paragraph (a), clause (2), item (i), general assistance medical 
164.14 	care covers, except as provided in paragraph (c):
164.15 	(1) inpatient hospital services;
164.16 	(2) outpatient hospital services;
164.17 	(3) services provided by Medicare certified rehabilitation agencies;
164.18 	(4) prescription drugs and other products recommended through the process 
164.19 	established in section 256B.0625, subdivision 13;
164.20 	(5) equipment necessary to administer insulin and diagnostic supplies and equipment 
164.21 	for diabetics to monitor blood sugar level;
164.22 	(6) eyeglasses and eye examinations provided by a physician or optometrist;
164.23 	(7) hearing aids;
164.24 	(8) prosthetic devices;
164.25 	(9) laboratory and X-ray services;
164.26 	(10) physician's services;
164.27 	(11) medical transportation except special transportation;
164.28 	(12) chiropractic services as covered under the medical assistance program;
164.29 	(13) podiatric services;
164.30 	(14) dental services as covered under the medical assistance program;
164.31 	(15) outpatient services provided by a mental health center or clinic that is under 
164.32 	contract with the county board and is established under section 245.62;
164.33 	(16) day treatment services for mental illness provided under contract with the 
164.34 	county board;
165.1 	(17) prescribed medications for persons who have been diagnosed as mentally ill as 
165.2 	necessary to prevent more restrictive institutionalization;
165.3 	(18) psychological services, medical supplies and equipment, and Medicare 
165.4 	premiums, coinsurance and deductible payments;
165.5 	(19) medical equipment not specifically listed in this paragraph when the use of 
165.6 	the equipment will prevent the need for costlier services that are reimbursable under 
165.7 	this subdivision;
165.8 	(20) services performed by a certified pediatric nurse practitioner, a certified family 
165.9 	nurse practitioner, a certified adult nurse practitioner, a certified obstetric/gynecological 
165.10 	nurse practitioner, a certified neonatal nurse practitioner, or a certified geriatric nurse 
165.11 	practitioner in independent practice, if (1) the service is otherwise covered under this 
165.12 	chapter as a physician service, (2) the service provided on an inpatient basis is not included 
165.13 	as part of the cost for inpatient services included in the operating payment rate, and (3) the 
165.14 	service is within the scope of practice of the nurse practitioner's license as a registered 
165.15 	nurse, as defined in section 148.171;
165.16 	(21) services of a certified public health nurse or a registered nurse practicing in 
165.17 	a public health nursing clinic that is a department of, or that operates under the direct 
165.18 	authority of, a unit of government, if the service is within the scope of practice of the 
165.19 	public health nurse's license as a registered nurse, as defined in section 148.171;
165.20 	(22) telemedicine consultations, to the extent they are covered under section 
165.21 	256B.0625, subdivision 3b; and
165.22 	(23) mental health telemedicine and psychiatric consultation as covered under 
165.23 	section 256B.0625, subdivisions 46 and 48.;
165.24 	(24) care coordination and patient education services provided by a community 
165.25 	health worker according to section 256B.0625, subdivision 49; and
165.26 	(25) regardless of the number of employees that an enrolled health care provider 
165.27 	may have, sign language interpreter services when provided by an enrolled health care 
165.28 	provider during the course of providing a direct, person-to-person covered health care 
165.29 	service to an enrolled recipient who has a hearing loss and uses interpreting services.
165.30 	(ii) Effective October 1, 2003, for a person who is eligible under subdivision 3, 
165.31 	paragraph (a), clause (2), item (ii), general assistance medical care coverage is limited 
165.32 	to inpatient hospital services, including physician services provided during the inpatient 
165.33 	hospital stay. A $1,000 deductible is required for each inpatient hospitalization.
165.34 	(b) Effective August 1, 2005, sex reassignment surgery is not covered under this 
165.35 	subdivision.
166.1 	(c) In order to contain costs, the commissioner of human services shall select 
166.2 	vendors of medical care who can provide the most economical care consistent with high 
166.3 	medical standards and shall where possible contract with organizations on a prepaid 
166.4 	capitation basis to provide these services. The commissioner shall consider proposals by 
166.5 	counties and vendors for prepaid health plans, competitive bidding programs, block grants, 
166.6 	or other vendor payment mechanisms designed to provide services in an economical 
166.7 	manner or to control utilization, with safeguards to ensure that necessary services are 
166.8 	provided. Before implementing prepaid programs in counties with a county operated or 
166.9 	affiliated public teaching hospital or a hospital or clinic operated by the University of 
166.10 	Minnesota, the commissioner shall consider the risks the prepaid program creates for the 
166.11 	hospital and allow the county or hospital the opportunity to participate in the program in a 
166.12 	manner that reflects the risk of adverse selection and the nature of the patients served by 
166.13 	the hospital, provided the terms of participation in the program are competitive with the 
166.14 	terms of other participants considering the nature of the population served. Payment for 
166.15 	services provided pursuant to this subdivision shall be as provided to medical assistance 
166.16 	vendors of these services under sections 256B.02, subdivision 8, and 256B.0625. For 
166.17 	payments made during fiscal year 1990 and later years, the commissioner shall consult 
166.18 	with an independent actuary in establishing prepayment rates, but shall retain final control 
166.19 	over the rate methodology.
166.20 	(d) Effective January 1, 2008, drug coverage under general assistance medical care 
166.21 	is limited to prescription drugs that:
166.22 	(i) are covered under the medical assistance program as described in section 
166.23 	256B.0625, subdivisions 13 and 13d; and
166.24 	(ii) are provided by manufacturers that have fully executed general assistance 
166.25 	medical care rebate agreements with the commissioner and comply with the agreements. 
166.26 	Prescription drug coverage under general assistance medical care must conform to 
166.27 	coverage under the medical assistance program according to section 256B.0625, 
166.28 	subdivisions 13 to 13g.
166.29 	(d) (e) Recipients eligible under subdivision 3, paragraph (a), shall pay the following 
166.30 	co-payments for services provided on or after October 1, 2003, and before January 1, 2009:
166.31 	(1) $25 for eyeglasses;
166.32 	(2) $25 for nonemergency visits to a hospital-based emergency room;
166.33 	(3) $3 per brand-name drug prescription and $1 per generic drug prescription, 
166.34 	subject to a $12 per month maximum for prescription drug co-payments. No co-payments 
166.35 	shall apply to antipsychotic drugs when used for the treatment of mental illness; and
166.36 	(4) 50 percent coinsurance on restorative dental services.
167.1 	(e)(f) Recipients eligible under subdivision 3, paragraph (a), shall include the 
167.2 	following co-payments for services provided on or after January 1, 2009: 
167.3 	(1) $25 for nonemergency visits to a hospital-based emergency room; and
167.4 	(2) $3 per brand-name drug prescription and $1 per generic drug prescription, 
167.5 	subject to a $7 per month maximum for prescription drug co-payments. No co-payments 
167.6 	shall apply to antipsychotic drugs when used for the treatment of mental illness.
167.7 	(g) Co-payments shall be limited to one per day per provider for nonpreventive visits, 
167.8 	eyeglasses, and nonemergency visits to a hospital-based emergency room. Recipients of 
167.9 	general assistance medical care are responsible for all co-payments in this subdivision. 
167.10 	The general assistance medical care reimbursement to the provider shall be reduced by the 
167.11 	amount of the co-payment, except that reimbursement for prescription drugs shall not be 
167.12 	reduced once a recipient has reached the $12 per month maximum for prescription drug 
167.13 	co-payments. The provider collects the co-payment from the recipient. Providers may 
167.14 	not deny services to recipients who are unable to pay the co-payment, except as provided 
167.15 	in paragraph (f). This paragraph expires January 1, 2009.
167.16 	(f) If it is the routine business practice of a provider to refuse service to an individual 
167.17 	with uncollected debt, the provider may include uncollected co-payments under this 
167.18 	section. A provider must give advance notice to a recipient with uncollected debt before 
167.19 	services can be denied.
167.20 	(h) Effective January 1, 2009, co-payments shall be limited to one per day per 
167.21 	provider for nonemergency visits to a hospital-based emergency room. Recipients of 
167.22 	general assistance medical care are responsible for all co-payments in this subdivision. 
167.23 	The general assistance medical care reimbursement to the provider shall be reduced by the 
167.24 	amount of the co-payment, except that reimbursement for prescription drugs shall not be 
167.25 	reduced once a recipient has reached the $7 per month maximum for prescription drug 
167.26 	co-payments. The provider collects the co-payment from the recipient. Providers may not 
167.27 	deny services to recipients who are unable to pay the co-payment.
167.28 	(i) General assistance medical care reimbursement to fee-for-service providers 
167.29 	and payments to managed care plans shall not be increased as a result of the removal of 
167.30 	the co-payments effective January 1, 2009.
167.31 	(g)(j) Any county may, from its own resources, provide medical payments for 
167.32 	which state payments are not made.
167.33 	(h)(k) Chemical dependency services that are reimbursed under chapter 254B must 
167.34 	not be reimbursed under general assistance medical care.
168.1 	(i)(l) The maximum payment for new vendors enrolled in the general assistance 
168.2 	medical care program after the base year shall be determined from the average usual and 
168.3 	customary charge of the same vendor type enrolled in the base year.
168.4 	(j)(m) The conditions of payment for services under this subdivision are the same 
168.5 	as the conditions specified in rules adopted under chapter 256B governing the medical 
168.6 	assistance program, unless otherwise provided by statute or rule.
168.7 	(k) (n) Inpatient and outpatient payments shall be reduced by five percent, effective 
168.8 	July 1, 2003. This reduction is in addition to the five percent reduction effective July 1, 
168.9 	2003, and incorporated by reference in paragraph (i) (l).
168.10 	(l)(o) Payments for all other health services except inpatient, outpatient, and 
168.11 	pharmacy services shall be reduced by five percent, effective July 1, 2003.
168.12 	(m)(p) Payments to managed care plans shall be reduced by five percent for services 
168.13 	provided on or after October 1, 2003.
168.14 	(n)(q) A hospital receiving a reduced payment as a result of this section may apply 
168.15 	the unpaid balance toward satisfaction of the hospital's bad debts.
168.16 	(o)(r) Fee-for-service payments for nonpreventive visits shall be reduced by $3 
168.17 	for services provided on or after January 1, 2006. For purposes of this subdivision, a 
168.18 	visit means an episode of service which is required because of a recipient's symptoms, 
168.19 	diagnosis, or established illness, and which is delivered in an ambulatory setting by 
168.20 	a physician or physician ancillary, chiropractor, podiatrist, advance practice nurse, 
168.21 	audiologist, optician, or optometrist.
168.22 	(p)(s) Payments to managed care plans shall not be increased as a result of the 
168.23 	removal of the $3 nonpreventive visit co-payment effective January 1, 2006.

168.24 	EFFECTIVE DATE. This section is effective July 1, 2007, unless another effective 
168.25 	date is explicit.

168.26 	Sec. 18. Minnesota Statutes 2006, section 256L.01, subdivision 1, is amended to read:
168.27 		Subdivision 1.Scope. For purposes of sections 256L.01 to 256L.18 this chapter, 
168.28 	the following terms shall have the meanings given them. 

168.29 	Sec. 19. Minnesota Statutes 2006, section 256L.01, subdivision 4, is amended to read:
168.30 		Subd. 4.Gross individual or gross family income. (a) "Gross individual or gross 
168.31 	family income" for nonfarm self-employed means income calculated for the six-month
168.32 	12-month period of eligibility using the net profit or loss reported on the applicant's 
168.33 	federal income tax form for the previous year and using the medical assistance families 
169.1 	with children methodology for determining allowable and nonallowable self-employment 
169.2 	expenses and countable income.
169.3 	(b) "Gross individual or gross family income" for farm self-employed means income 
169.4 	calculated for the six-month12-month period of eligibility using as the baseline the 
169.5 	adjusted gross income reported on the applicant's federal income tax form for the previous 
169.6 	year and adding back in reported depreciation amounts that apply to the business in which 
169.7 	the family is currently engaged.
169.8 	(c) "Gross individual or gross family income" means the total income for all family 
169.9 	members, calculated for the six-month12-month period of eligibility.

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

169.12 	Sec. 20. Minnesota Statutes 2006, section 256L.03, subdivision 1, is amended to read:
169.13 		Subdivision 1.Covered health services. For individuals under section 256L.04, 
169.14 	subdivision 7, with income no greater than 75 percent of the federal poverty guidelines 
169.15 	or for families with children under section 256L.04, subdivision 1, all subdivisions of 
169.16 	this section apply. "Covered health services" means the health services reimbursed 
169.17 	under chapter 256B, with the exception of inpatient hospital services, special education 
169.18 	services, private duty nursing services, adult dental care services other than services 
169.19 	covered under section 256B.0625, subdivision 9, orthodontic services, nonemergency 
169.20 	medical transportation services, personal care assistant and case management services, 
169.21 	nursing home or intermediate care facilities services, inpatient mental health services, 
169.22 	and chemical dependency services. Outpatient mental health services covered under the 
169.23 	MinnesotaCare program are limited to diagnostic assessments, psychological testing, 
169.24 	explanation of findings, mental health telemedicine, psychiatric consultation, medication 
169.25 	management by a physician, day treatment, partial hospitalization, and individual, family, 
169.26 	and group psychotherapy.
169.27 	No public funds shall be used for coverage of abortion under MinnesotaCare 
169.28 	except where the life of the female would be endangered or substantial and irreversible 
169.29 	impairment of a major bodily function would result if the fetus were carried to term; or 
169.30 	where the pregnancy is the result of rape or incest.
169.31 	Covered health services shall be expanded as provided in this section.

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

169.33 	Sec. 21. Minnesota Statutes 2006, section 256L.03, subdivision 3, is amended to read:
170.1 		Subd. 3.Inpatient hospital services. (a) Covered health services shall include 
170.2 	inpatient hospital services, including inpatient hospital mental health services and inpatient 
170.3 	hospital and residential chemical dependency treatment, subject to those limitations 
170.4 	necessary to coordinate the provision of these services with eligibility under the medical 
170.5 	assistance spenddown. Prior to July 1, 1997, the inpatient hospital benefit for adult 
170.6 	enrollees is subject to an annual benefit limit of $10,000. The inpatient hospital benefit for 
170.7 	adult enrollees who qualify under section 256L.04, subdivision 7, or who qualify under 
170.8 	section 256L.04, subdivisions 1 and 2, with family gross income that exceeds 175 200
170.9 	percent of the federal poverty guidelines or 215 percent of the federal poverty guidelines 
170.10 	on or after July 1, 2009, and who are not pregnant, is subject to an annual limit of $10,000. 
170.11 	(b) Admissions for inpatient hospital services paid for under section 256L.11, 
170.12 	subdivision 3, must be certified as medically necessary in accordance with Minnesota 
170.13 	Rules, parts 9505.0500 to 9505.0540, except as provided in clauses (1) and (2): 
170.14 	(1) all admissions must be certified, except those authorized under rules established 
170.15 	under section 254A.03, subdivision 3, or approved under Medicare; and 
170.16 	(2) payment under section 256L.11, subdivision 3, shall be reduced by five percent 
170.17 	for admissions for which certification is requested more than 30 days after the day of 
170.18 	admission. The hospital may not seek payment from the enrollee for the amount of the 
170.19 	payment reduction under this clause. 

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

170.21 	Sec. 22. Minnesota Statutes 2006, section 256L.03, subdivision 5, is amended to read:
170.22 		Subd. 5.Co-payments and coinsurance. (a) Except as provided in paragraphs (b) 
170.23 	and (c), the MinnesotaCare benefit plan shall include the following co-payments and 
170.24 	coinsurance requirements for all enrollees:
170.25 	(1) ten percent of the paid charges for inpatient hospital services for adult enrollees, 
170.26 	subject to an annual inpatient out-of-pocket maximum of $1,000 per individual and 
170.27 	$3,000 per family;
170.28 	(2) $3 per prescription for adult enrollees;
170.29 	(3) $25 for eyeglasses for adult enrollees;
170.30 	(4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an 
170.31 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
170.32 	established illness, and which is delivered in an ambulatory setting by a physician or 
170.33 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
170.34 	audiologist, optician, or optometrist; and
170.35 	(5) $6 for nonemergency visits to a hospital-based emergency room.
171.1 	(b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of 
171.2 	children under the age of 21 in households with family income equal to or less than 175 
171.3 	percent of the federal poverty guidelines. Paragraph (a), clause (1), does not apply to 
171.4 	parents and relative caretakers of children under the age of 21 in households with family 
171.5 	income greater than 175 percent of the federal poverty guidelines for inpatient hospital 
171.6 	admissions occurring on or after January 1, 2001.
171.7 	(c) Paragraph (a), clauses (1) to (4), do does not apply to pregnant women and 
171.8 	children under the age of 21.
171.9 	(d) Adult enrollees with family gross income that exceeds 175 200 percent of the 
171.10 	federal poverty guidelines or 215 percent of the federal poverty guidelines on or after July 
171.11 	1, 2009, and who are not pregnant shall be financially responsible for the coinsurance 
171.12 	amount, if applicable, and amounts which exceed the $10,000 inpatient hospital benefit 
171.13 	limit.
171.14 	(e) When a MinnesotaCare enrollee becomes a member of a prepaid health plan, 
171.15 	or changes from one prepaid health plan to another during a calendar year, any charges 
171.16 	submitted towards the $10,000 annual inpatient benefit limit, and any out-of-pocket 
171.17 	expenses incurred by the enrollee for inpatient services, that were submitted or incurred 
171.18 	prior to enrollment, or prior to the change in health plans, shall be disregarded.

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

171.20 	Sec. 23. Minnesota Statutes 2006, section 256L.04, subdivision 7, is amended to read:
171.21 		Subd. 7.Single adults and households with no children. The definition of eligible 
171.22 	persons includes all individuals and households with no children who have gross family 
171.23 	incomes that are equal to or less than 175 200 percent of the federal poverty guidelines.
171.24 	Effective July 1, 2009, the definition of eligible persons includes all individuals and 
171.25 	households with no children who have gross family incomes that are equal to or less than 
171.26 	215 percent of the federal poverty guidelines.

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

171.28 	Sec. 24. Minnesota Statutes 2006, section 256L.05, subdivision 1, is amended to read:
171.29 		Subdivision 1.Application and information availability. Applications and other 
171.30 	information application assistance must be made available to at provider offices, local 
171.31 	human services agencies, school districts, public and private elementary schools in which 
171.32 	25 percent or more of the students receive free or reduced price lunches, community health 
171.33 	offices, and Women, Infants and Children (WIC) program sites, Head Start program sites, 
172.1 	public housing councils, crisis nurseries, child care centers, early childhood education 
172.2 	and preschool program sites, legal aid offices, and libraries. These sites may accept 
172.3 	applications and forward the forms to the commissioner or local county human services 
172.4 	agencies that choose to participate as an enrollment site. Otherwise, applicants may apply 
172.5 	directly to the commissioner or to participating local county human services agencies. 
172.6 	Beginning January 1, 2000, MinnesotaCare enrollment sites will be expanded to include 
172.7 	local county human services agencies which choose to participate.

172.8 	Sec. 25. Minnesota Statutes 2006, section 256L.05, subdivision 1b, is amended to read:
172.9 		Subd. 1b.MinnesotaCare enrollment by county agencies. Beginning September 
172.10 	1, 2006, county agencies shall enroll single adults and households with no children 
172.11 	formerly enrolled in general assistance medical care in MinnesotaCare according to 
172.12 	section 256D.03, subdivision 3. County agencies shall perform all duties necessary 
172.13 	to administer the MinnesotaCare program ongoing for these enrollees, including the 
172.14 	redetermination of MinnesotaCare eligibility at six-month renewal.

172.15 	Sec. 26. Minnesota Statutes 2006, section 256L.05, subdivision 2, is amended to read:
172.16 		Subd. 2.Commissioner's duties. (a) The commissioner or county agency shall 
172.17 	use electronic verification as the primary method of income verification. If there is a 
172.18 	discrepancy between reported income and electronically verified income, an individual 
172.19 	may be required to submit additional verification. In addition, the commissioner shall 
172.20 	perform random audits to verify reported income and eligibility. The commissioner 
172.21 	may execute data sharing arrangements with the Department of Revenue and any other 
172.22 	governmental agency in order to perform income verification related to eligibility and 
172.23 	premium payment under the MinnesotaCare program.
172.24 	(b) In determining eligibility for MinnesotaCare, the commissioner shall require 
172.25 	applicants and enrollees seeking renewal of eligibility to verify both earned and unearned 
172.26 	income. The commissioner shall also require applicants and enrollees to submit the names 
172.27 	of their employers and a contact name with a telephone number for each employer for 
172.28 	purposes of verifying whether the applicant or enrollee, and any dependents, are eligible 
172.29 	for employer-subsidized coverage. Data collected is nonpublic data as defined in section 
172.30 	13.02, subdivision 9.

172.31 	Sec. 27. Minnesota Statutes 2006, section 256L.05, subdivision 3a, is amended to read:
173.1 		Subd. 3a.Renewal of eligibility. (a) Beginning January 1, 1999 July 1, 2007, an 
173.2 	enrollee's eligibility must be renewed every 12 months. The 12-month period begins in 
173.3 	the month after the month the application is approved.
173.4 	(b) Beginning October 1, 2004, an enrollee's eligibility must be renewed every 
173.5 	six months. The first six-month period of eligibility begins the month the application is 
173.6 	received by the commissioner. The effective date of coverage within the first six-month 
173.7 	period of eligibility is as provided in subdivision 3. Each new period of eligibility must 
173.8 	take into account any changes in circumstances that impact eligibility and premium 
173.9 	amount. An enrollee must provide all the information needed to redetermine eligibility by 
173.10 	the first day of the month that ends the eligibility period. The premium for the new period 
173.11 	of eligibility must be received as provided in section 256L.06 in order for eligibility to 
173.12 	continue.
173.13 	(c) For single adults and households with no children formerly enrolled in general 
173.14 	assistance medical care and enrolled in MinnesotaCare according to section 256D.03, 
173.15 	subdivision 3, the first six-month period of eligibility begins the month the enrollee 
173.16 	submitted the application or renewal for general assistance medical care.

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

173.19 	Sec. 28. Minnesota Statutes 2006, section 256L.07, subdivision 1, is amended to read:
173.20 		Subdivision 1.General requirements. (a) Children enrolled in the original 
173.21 	children's health plan as of September 30, 1992, children who enrolled in the 
173.22 	MinnesotaCare program after September 30, 1992, pursuant to Laws 1992, chapter 549, 
173.23 	article 4, section 17, and children who have family gross incomes that are equal to or 
173.24 	less than 150 percent of the federal poverty guidelines are eligible without meeting 
173.25 	the requirements of subdivision 2 and the four-month requirement in subdivision 3, as 
173.26 	long as they maintain continuous coverage in the MinnesotaCare program or medical 
173.27 	assistance. Children who apply for MinnesotaCare on or after the implementation date 
173.28 	of the employer-subsidized health coverage program as described in Laws 1998, chapter 
173.29 	407, article 5, section 45, who have family gross incomes that are equal to or less than 150 
173.30 	percent of the federal poverty guidelines, must meet the requirements of subdivision 2 to 
173.31 	be eligible for MinnesotaCare.
173.32 	(b) Families enrolled in MinnesotaCare under section 256L.04, subdivision 1, whose 
173.33 	income increases above 275 percent of the federal poverty guidelines, are no longer 
173.34 	eligible for the program and shall be disenrolled by the commissioner. Beginning January 
173.35 	1, 2008, individuals enrolled in MinnesotaCare under section 256L.04, subdivision 7, 
174.1 	whose income increases above 175 200 percent of the federal poverty guidelines or 215 
174.2 	percent of the federal poverty guidelines on or after July 1, 2009, are no longer eligible for 
174.3 	the program and shall be disenrolled by the commissioner. For persons disenrolled under 
174.4 	this subdivision, MinnesotaCare coverage terminates the last day of the calendar month 
174.5 	following the month in which the commissioner determines that the income of a family or 
174.6 	individual exceeds program income limits.
174.7 	(c) (b)  Notwithstanding paragraph (b) (a), children may remain enrolled in 
174.8 	MinnesotaCare if ten percent of their gross individual or gross family income as defined 
174.9 	in section 256L.01, subdivision 4, is less than the annual premium for a six-month
174.10 	policy with a $500 deductible available through the Minnesota Comprehensive Health 
174.11 	Association. Children who are no longer eligible for MinnesotaCare under this clause shall 
174.12 	be given a 12-month notice period from the date that ineligibility is determined before 
174.13 	disenrollment. The premium for children remaining eligible under this clause shall be the 
174.14 	maximum premium determined under section 256L.15, subdivision 2, paragraph (b).
174.15 	(d) (c) Notwithstanding paragraphs (b) (a) and (c) (b), parents are not eligible for 
174.16 	MinnesotaCare if gross household income exceeds $25,000 for the six-month$50,000 
174.17 	for the twelve-month period of eligibility.

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

174.20 	Sec. 29. Minnesota Statutes 2006, section 256L.07, subdivision 6, is amended to read:
174.21 		Subd. 6.Exception for certain adults. Single adults and households with 
174.22 	no children formerly enrolled in general assistance medical care and enrolled in 
174.23 	MinnesotaCare according to section 256D.03, subdivision 3, are eligible without meeting 
174.24 	the requirements of this section until six-month renewal.

174.25 	Sec. 30. Minnesota Statutes 2006, section 256L.09, subdivision 4, is amended to read:
174.26 		Subd. 4.Eligibility as Minnesota resident. (a) For purposes of this section, a 
174.27 	permanent Minnesota resident is a person who has demonstrated, through persuasive and 
174.28 	objective evidence, that the person is domiciled in the state and intends to live in the 
174.29 	state permanently.
174.30 	(b) To be eligible as a permanent resident, an applicant must demonstrate the 
174.31 	requisite intent to live in the state permanently by:
174.32 	(1) showing that the applicant maintains a residence at a verified address other than a 
174.33 	place of public accommodation, through the use of evidence of residence described in 
174.34 	section 256D.02, subdivision 12a, paragraph (b), clause (1) (2); 
175.1 	(2) demonstrating that the applicant has been continuously domiciled in the state for 
175.2 	no less than 180 days immediately before the application; and
175.3 	(3) signing an affidavit declaring that (A) the applicant currently resides in the state 
175.4 	and intends to reside in the state permanently; and (B) the applicant did not come to the 
175.5 	state for the primary purpose of obtaining medical coverage or treatment.
175.6 	(c) A person who is temporarily absent from the state does not lose eligibility for 
175.7 	MinnesotaCare. "Temporarily absent from the state" means the person is out of the state 
175.8 	for a temporary purpose and intends to return when the purpose of the absence has been 
175.9 	accomplished. A person is not temporarily absent from the state if another state has 
175.10 	determined that the person is a resident for any purpose. If temporarily absent from the 
175.11 	state, the person must follow the requirements of the health plan in which the person is 
175.12 	enrolled to receive services.

175.13 	Sec. 31. Minnesota Statutes 2006, section 256L.11, subdivision 7, is amended to read:
175.14 		Subd. 7.Critical access dental providers. Effective for dental services provided 
175.15 	to MinnesotaCare enrollees on or after January 1, 2007, the commissioner shall increase 
175.16 	payment rates to dentists and dental clinics deemed by the commissioner to be critical 
175.17 	access providers under section 256B.76, paragraph (c), by 50 percent above the payment 
175.18 	rate that would otherwise be paid to the provider. The commissioner shall adjust the rates 
175.19 	paid on or after January 1, 2007, topay the prepaid health plans under contract with the 
175.20 	commissioner amounts sufficient to reflect this rate increase. The prepaid health plan must 
175.21 	pass this rate increase to providers who have been identified by the commissioner as 
175.22 	critical access dental providers under section 256B.76, paragraph (c).

175.23 	Sec. 32. Minnesota Statutes 2006, section 256L.15, subdivision 1, is amended to read:
175.24 		Subdivision 1.Premium determination. (a) Families with children and individuals 
175.25 	shall pay a premium determined according to subdivision 2.
175.26 	(b) Pregnant women and children under age two are exempt from the provisions 
175.27 	of section 256L.06, subdivision 3, paragraph (b), clause (3), requiring disenrollment 
175.28 	for failure to pay premiums. For pregnant women, this exemption continues until the 
175.29 	first day of the month following the 60th day postpartum. Women who remain enrolled 
175.30 	during pregnancy or the postpartum period, despite nonpayment of premiums, shall be 
175.31 	disenrolled on the first of the month following the 60th day postpartum for the penalty 
175.32 	period that otherwise applies under section 256L.06, unless they begin paying premiums. 
175.33 	(c) Members of the military and their families who meet the eligibility criteria 
175.34 	for MinnesotaCare upon eligibility approval made within 24 months following the end 
176.1 	of the member's tour of active duty shall have their premiums paid by the commissioner. 
176.2 	The effective date of coverage for an individual or family who meets the criteria of this 
176.3 	paragraph shall be the first day of the month following the month in which eligibility is 
176.4 	approved. This exemption applies for 12 months. This paragraph expires June 30, 2010. 

176.5 	EFFECTIVE DATE. This section is effective July 1, 2007, or upon federal 
176.6 	approval, whichever is later. The commissioner of human services shall notify the Office 
176.7 	of the Revisor of Statutes when federal approval is obtained.

176.8 	Sec. 33. Minnesota Statutes 2006, section 256L.15, subdivision 2, is amended to read:
176.9 		Subd. 2.Sliding fee scale; monthly gross individual or family income. (a) The 
176.10 	commissioner shall establish a sliding fee scale to determine the percentage of monthly 
176.11 	gross individual or family income that households at different income levels must pay 
176.12 	to obtain coverage through the MinnesotaCare program. The sliding fee scale must be 
176.13 	based on the enrollee's monthly gross individual or family income. The sliding fee scale 
176.14 	must contain separate tables based on enrollment of one, two, or three or more persons. 
176.15 	The sliding fee scale begins with a premium of 1.5 percent of monthly gross individual or 
176.16 	family income for individuals or families with incomes below the limits for the medical 
176.17 	assistance program for families and children in effect on January 1, 1999, and proceeds 
176.18 	through the following evenly spaced steps: 1.8, 2.3, 3.1, 3.8, 4.8, 5.9, 7.4, and 8.8 percent. 
176.19 	These percentages are matched to evenly spaced income steps ranging from the medical 
176.20 	assistance income limit for families and children in effect on January 1, 1999, to 275 
176.21 	percent of the federal poverty guidelines for the applicable family size, up to a family size 
176.22 	of five. The sliding fee scale for a family of five must be used for families of more than 
176.23 	five. Effective October 1, 2003, the commissioner shall increase each percentage by 0.5 
176.24 	percentage points for enrollees with income greater than 100 percent but not exceeding 
176.25 	200 percent of the federal poverty guidelines and shall increase each percentage by 1.0 
176.26 	percentage points for families and children with incomes greater than 200 percent of 
176.27 	the federal poverty guidelines. The sliding fee scale and percentages are not subject to 
176.28 	the provisions of chapter 14. If a family or individual reports increased income after 
176.29 	enrollment, premiums shall be adjusted at the time the change in income is reported.
176.30 	(b) Children in Families whose gross income is above 275 percent of the federal 
176.31 	poverty guidelines shall pay the maximum premium. The maximum premium is defined 
176.32 	as a base charge for one, two, or three or more enrollees so that if all MinnesotaCare 
176.33 	cases paid the maximum premium, the total revenue would equal the total cost of 
176.34 	MinnesotaCare medical coverage and administration. In this calculation, administrative 
176.35 	costs shall be assumed to equal ten percent of the total. The costs of medical coverage 
177.1 	for pregnant women and children under age two and the enrollees in these groups shall 
177.2 	be excluded from the total. The maximum premium for two enrollees shall be twice the 
177.3 	maximum premium for one, and the maximum premium for three or more enrollees shall 
177.4 	be three times the maximum premium for one.
177.5 	(c) After calculating the percentage of premium each enrollee shall pay under 
177.6 	paragraph (a), eight percent shall be added to the premium.

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

177.9 	Sec. 34. Minnesota Statutes 2006, section 256L.15, subdivision 4, is amended to read:
177.10 		Subd. 4.Exception for transitioned adults. County agencies shall pay premiums 
177.11 	for single adults and households with no children formerly enrolled in general assistance 
177.12 	medical care and enrolled in MinnesotaCare according to section 256D.03, subdivision 3, 
177.13 	until six-month renewal. The county agency has the option of continuing to pay premiums 
177.14 	for these enrollees past the first six-month renewal period.

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

177.16 	Sec. 35. Minnesota Statutes 2006, section 256L.17, subdivision 2, is amended to read:
177.17 		Subd. 2.Limit on total assets. (a) Effective July 1, 2002, or upon federal approval, 
177.18 	whichever is later, in order to be eligible for the MinnesotaCare program, a household of 
177.19 	two or more persons must not own more than $20,000 in total net assets, and a household 
177.20 	of one person must not own more than $10,000 in total net assets.
177.21 	(b) For purposes of this subdivision, assets are determined according to section 
177.22 	256B.056, subdivision 3c, except that workers' compensation settlements received due to 
177.23 	a work-related injury shall not be considered. 
177.24 	(c) State-funded MinnesotaCare is not available for applicants or enrollees who are 
177.25 	otherwise eligible for medical assistance but fail to verify assets. Enrollees who become 
177.26 	eligible for federally funded medical assistance shall be terminated from state-funded 
177.27 	MinnesotaCare and transferred to medical assistance.

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

177.30 	Sec. 36. Minnesota Statutes 2006, section 256L.17, subdivision 7, is amended to read:
177.31 		Subd. 7.Exception for certain adults. Single adults and households with 
177.32 	no children formerly enrolled in general assistance medical care and enrolled in 
178.1 	MinnesotaCare according to section 256D.03, subdivision 3, are exempt from the 
178.2 	requirements of this section until six-month renewal.

178.3 	Sec. 37. HENNEPIN COUNTY PILOT PROJECT.
 178.4 	The commissioner of human services shall support a pilot project in Hennepin 
178.5 	County to demonstrate the effectiveness of alternative strategies to redetermine eligibility 
178.6 	for certain recipient populations in the medical assistance program. The target populations 
178.7 	for the demonstration are persons who are eligible based upon disability or age, who have 
178.8 	chronic medical conditions, and who are expected to experience minimal change in income 
178.9 	or assets from month to month. The commissioner and the county shall analyze the issues 
178.10 	and strategies employed and the outcomes to determine reasonable efforts to streamline 
178.11 	eligibility statewide. The duration of the pilot project shall be no more than two years. 
178.12 	The commissioner shall apply for any federal waivers needed to implement this section.

178.13 	Sec. 38. PHARMACY REPORT ON DRA IMPACT.
 178.14 		Subdivision 1.Fiscal impact of deficit reduction act. The commissioner of 
178.15 	human services shall report to the legislature by January 15, 2008, on the fiscal impact of 
178.16 	Deficit Reduction Act reforms on the Minnesota Medicaid pharmacy program, including 
178.17 	but not limited to:
178.18 	(1) overall cost reductions to the Minnesota Medicaid pharmacy program as a result 
178.19 	of the Deficit Reduction Act of 2005;
178.20 	(2) the impact of reforms on the federal upper limit on pharmacy reimbursement, 
178.21 	and the amount that the dispensing fee for multiple-source generic drugs would have to 
178.22 	be adjusted to offset any reductions resulting from federal upper limits implemented as a 
178.23 	result of the Deficit Reduction Act of 2005;
178.24 	(3) the change in federal rebates received from pharmaceutical manufacturers 
178.25 	as a result of Deficit Reduction Act reforms, and strategies that could be employed in 
178.26 	administering the Medicaid drug formulary to compensate for lost manufacturer rebates; 
178.27 	(4) a comparison of published federal upper limits and state maximum allowable 
178.28 	cost (MAC) prices prior to and following implementation of the Deficit Reduction Act 
178.29 	federal upper limit reforms;
178.30 	(5) the number of participating pharmacies in the program as of January 1, 2007, 
178.31 	July 1, 2007, and November 1, 2007; and
178.32 	(6) the Minnesota Medicaid fee-for-service pharmacy program rate of generic 
178.33 	dispensing before and after state implementation of Deficit Reduction Act of 2005 generic 
178.34 	reimbursement reform.

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

179.2 	Sec. 39. CHIROPRACTIC COVERAGE.
 179.3 	The commissioner of human services, through the Health Services Policy 
179.4 	Committee established under Minnesota Statutes, section 256B.0625, subdivision 3c, and 
179.5 	using existing funding, shall study whether medical assistance coverage for chiropractic 
179.6 	services should be expanded to include initial and progress exams, and shall report 
179.7 	recommendations to the legislature by January 15, 2008.

179.8 	Sec. 40. IMPLEMENTATION.
 179.9 	The commissioner of human services shall implement the amendments to Minnesota 
179.10 	Statutes, sections 256.969, subdivision 9; 256.969, subdivision 27; and 256B.199, on the 
179.11 	earliest date for which the Centers for Medicare and Medicaid Services grants approval. 
179.12 	The commissioner may alter the reporting date for Hennepin County and Hennepin 
179.13 	County Medical Center in Minnesota Statutes, section 256.969, subdivision 9, paragraph 
179.14 	(f), clause (2), to reflect the approved effective date.

179.15 	Sec. 41.  REPEALER.
 179.16 	(a) Minnesota Statutes 2006, sections 256B.0625, subdivisions 5a, 5b, 5c, 5d, 5e, 5f, 
179.17 	5g, 5h, 5i, 5j, and 5k; and 256L.07, subdivision 2a, are repealed effective July 1, 2007.
179.18 	(b) Minnesota Statutes 2006, sections 256.956,  is repealed effective September 
179.19 	1, 2007.
179.20 	(c) Minnesota Statutes 2006, section 256L.035, is repealed effective January 1, 2008.
179.21 	(d) Minnesota Statutes 2006, section 256B.0631, subdivision 4, is repealed effective 
179.22 	January 1, 2009.

179.23 	ARTICLE 6
179.24 	CONTINUING CARE POLICY

179.25 	Section 1. Minnesota Statutes 2006, section 144A.351, is amended to read:
179.26 	144A.351 BALANCING LONG-TERM CARE: REPORT REQUIRED.
179.27 	The commissioners of health and human services, with the cooperation of counties 
179.28 	and regional entities, shall prepare a report to the legislature by JanuaryAugust 15, 2004, 
179.29 	and biennially thereafter, regarding the status of the full range of long-term care services 
179.30 	for the elderly in Minnesota. The report shall address:
179.31 	(1) demographics and need for long-term care in Minnesota;
180.1 	(2) summary of county and regional reports on long-term care gaps, surpluses, 
180.2 	imbalances, and corrective action plans;
180.3 	(3) status of long-term care services by county and region including:
180.4 	(i) changes in availability of the range of long-term care services and housing 
180.5 	options;
180.6 	(ii) access problems regarding long-term care; and
180.7 	(iii) comparative measures of long-term care availability and progress over time; and
180.8 	(4) recommendations regarding goals for the future of long-term care services, 
180.9 	policy changes, and resource needs.

180.10 	Sec. 2. Minnesota Statutes 2006, section 252.32, subdivision 3, is amended to read:
180.11 		Subd. 3.Amount of support grant; use. Support grant amounts shall be 
180.12 	determined by the county social service agency. Services and items purchased with a 
180.13 	support grant must:
180.14 	(1) be over and above the normal costs of caring for the dependent if the dependent 
180.15 	did not have a disability;
180.16 	(2) be directly attributable to the dependent's disabling condition; and
180.17 	(3) enable the family to delay or prevent the out-of-home placement of the dependent.
180.18 	The design and delivery of services and items purchased under this section must 
180.19 	suit the dependent's chronological age and be provided in the least restrictive environment 
180.20 	possible, consistent with the needs identified in the individual service plan.
180.21 	Items and services purchased with support grants must be those for which there 
180.22 	are no other public or private funds available to the family. Fees assessed to parents 
180.23 	for health or human services that are funded by federal, state, or county dollars are not 
180.24 	reimbursable through this program.
180.25 	In approving or denying applications, the county shall consider the following factors:
180.26 	(1) the extent and areas of the functional limitations of the disabled child;
180.27 	(2) the degree of need in the home environment for additional support; and
180.28 	(3) the potential effectiveness of the grant to maintain and support the person in 
180.29 	the family environment.
180.30 	The maximum monthly grant amount shall be $250 per eligible dependent, or 
180.31 	$3,000 per eligible dependent per state fiscal year, within the limits of available funds and 
180.32 	as adjusted by any legislatively authorized cost of living adjustment. The county social 
180.33 	service agency may consider the dependent's supplemental security income in determining 
180.34 	the amount of the support grant.
181.1 	Any adjustments to their monthly grant amount must be based on the needs of the 
181.2 	family and funding availability.

181.3 	Sec. 3. Minnesota Statutes 2006, section 256.476, subdivision 1, is amended to read:
181.4 		Subdivision 1.Purpose and goals. The commissioner of human services shall 
181.5 	establish a consumer support grant program for individuals with functional limitations and 
181.6 	their families who wish to purchase and secure their own supports. The commissioner and 
181.7 	local agencies shall jointly develop an implementation plan which must include a way to 
181.8 	resolve the issues related to county liability. The program shall:
181.9 	(1) make support grants available to individuals or families as an effective alternative 
181.10 	to the developmental disability family support program, personal care attendant services, 
181.11 	home health aide services, and private duty nursing services;
181.12 	(2) provide consumers more control, flexibility, and responsibility over their services 
181.13 	and supports;
181.14 	(3) promote local program management and decision making; and
181.15 	(4) encourage the use of informal and typical community supports.

181.16 	Sec. 4. Minnesota Statutes 2006, section 256.476, subdivision 2, is amended to read:
181.17 		Subd. 2.Definitions. For purposes of this section, the following terms have the 
181.18 	meanings given them:
181.19 	(a) "County board" means the county board of commissioners for the county of 
181.20 	financial responsibility as defined in section 256G.02, subdivision 4, or its designated 
181.21 	representative. When a human services board has been established under sections 402.01
181.22 	to 402.10, it shall be considered the county board for the purposes of this section. 
181.23 	(b) "Family" means the person's birth parents, adoptive parents or stepparents, 
181.24 	siblings or stepsiblings, children or stepchildren, grandparents, grandchildren, niece, 
181.25 	nephew, aunt, uncle, or spouse. For the purposes of this section, a family member is 
181.26 	at least 18 years of age.
181.27 	(c) "Functional limitations" means the long-term inability to perform an activity or 
181.28 	task in one or more areas of major life activity, including self-care, understanding and use 
181.29 	of language, learning, mobility, self-direction, and capacity for independent living. For the 
181.30 	purpose of this section, the inability to perform an activity or task results from a mental, 
181.31 	emotional, psychological, sensory, or physical disability, condition, or illness.
181.32 	(d) "Informed choice" means a voluntary decision made by the person or,
181.33 	the person's legal representative, or other authorized representative after becoming 
181.34 	familiarized with the alternatives to:
182.1 	(1) select a preferred alternative from a number of feasible alternatives;
182.2 	(2) select an alternative which may be developed in the future; and
182.3 	(3) refuse any or all alternatives.
182.4 	(e) "Local agency" means the local agency authorized by the county board or, 
182.5 	for counties not participating in the consumer grant program by July 1, 2002, the 
182.6 	commissioner, to carry out the provisions of this section.
182.7 	(f) "Person" or "persons" means a person or persons meeting the eligibility criteria in 
182.8 	subdivision 3.
182.9 	(g) "Authorized representative" means an individual designated by the person or 
182.10 	their legal representative to act on their behalf. This individual may be a family member, 
182.11 	guardian, representative payee, or other individual designated by the person or their legal 
182.12 	representative, if any, to assist in purchasing and arranging for supports. For the purposes 
182.13 	of this section, an authorized representative is at least 18 years of age.
182.14 	(h) "Screening" means the screening of a person's service needs under sections 
182.15 	256B.0911 and 256B.092. 
182.16 	(i) "Supports" means services, care, aids, environmental modifications, or assistance 
182.17 	purchased by the person or the person's family, the person's legal representative, or other 
182.18 	authorized representative. Examples of supports include respite care, assistance with daily 
182.19 	living, and assistive technology. For the purpose of this section, notwithstanding the 
182.20 	provisions of section 144A.43, supports purchased under the consumer support program 
182.21 	are not considered home care services. 
182.22 	(j) "Program of origination" means the program the individual transferred from 
182.23 	when approved for the consumer support grant program.

182.24 	Sec. 5. Minnesota Statutes 2006, section 256.476, subdivision 3, is amended to read:
182.25 		Subd. 3.Eligibility to apply for grants. (a) A person is eligible to apply for a 
182.26 	consumer support grant if the person meets all of the following criteria:
182.27 	(1) the person is eligible for and has been approved to receive services under 
182.28 	medical assistance as determined under sections 256B.055 and 256B.056 or the person 
182.29 	has been approved to receive a grant under the developmental disability family support 
182.30 	program under section 252.32; 
182.31 	(2) the person is able to direct and purchase the person's own care and supports, or 
182.32 	the person has a family member, legal representative, or other authorized representative 
182.33 	who can purchase and arrange supports on the person's behalf;
183.1 	(3) the person has functional limitations, requires ongoing supports to live in the 
183.2 	community, and is at risk of or would continue institutionalization without such supports; 
183.3 	and
183.4 	(4) the person will live in a home. For the purpose of this section, "home" means the 
183.5 	person's own home or home of a person's family member. These homes are natural home 
183.6 	settings and are not licensed by the Department of Health or Human Services.
183.7 	(b) Persons may not concurrently receive a consumer support grant if they are:
183.8 	(1) receiving personal care attendant and home health aide services, or private duty 
183.9 	nursing under section 256B.0625; a developmental disability family support grant; or 
183.10 	alternative care services under section 256B.0913; or 
183.11 	(2) residing in an institutional or congregate care setting.
183.12 	(c) A person or person's family receiving a consumer support grant shall not be 
183.13 	charged a fee or premium by a local agency for participating in the program.
183.14 	(d) Individuals receiving home and community-based waivers under United States 
183.15 	Code, title 42, section 1396h(c), are not eligible for the consumer support grant, except 
183.16 	for individuals receiving consumer support grants before July 1, 2003, as long as other 
183.17 	eligibility criteria are met.
183.18 	(e) The commissioner shall establish a budgeted appropriation each fiscal year 
183.19 	for the consumer support grant program. The number of individuals participating in 
183.20 	the program will be adjusted so the total amount allocated to counties does not exceed 
183.21 	the amount of the budgeted appropriation. The budgeted appropriation will be adjusted 
183.22 	annually to accommodate changes in demand for the consumer support grants.

183.23 	Sec. 6. Minnesota Statutes 2006, section 256.476, subdivision 4, is amended to read:
183.24 		Subd. 4.Support grants; criteria and limitations. (a) A county board may 
183.25 	choose to participate in the consumer support grant program. If a county has not chosen 
183.26 	to participate by July 1, 2002, the commissioner shall contract with another county or 
183.27 	other entity to provide access to residents of the nonparticipating county who choose 
183.28 	the consumer support grant option. The commissioner shall notify the county board 
183.29 	in a county that has declined to participate of the commissioner's intent to enter into 
183.30 	a contract with another county or other entity at least 30 days in advance of entering 
183.31 	into the contract. The local agency shall establish written procedures and criteria to 
183.32 	determine the amount and use of support grants. These procedures must include, at least, 
183.33 	the availability of respite care, assistance with daily living, and adaptive aids. The local 
183.34 	agency may establish monthly or annual maximum amounts for grants and procedures 
183.35 	where exceptional resources may be required to meet the health and safety needs of the 
184.1 	person on a time-limited basis, however, the total amount awarded to each individual may 
184.2 	not exceed the limits established in subdivision 11.
184.3 	(b) Support grants to a person or a person's family, a person's legal representative, 
184.4 	or other authorized representative will be provided through a monthly subsidy payment 
184.5 	and be in the form of cash, voucher, or direct county payment to vendor. Support grant 
184.6 	amounts must be determined by the local agency. Each service and item purchased with a 
184.7 	support grant must meet all of the following criteria:
184.8 	(1) it must be over and above the normal cost of caring for the person if the person 
184.9 	did not have functional limitations;
184.10 	(2) it must be directly attributable to the person's functional limitations;
184.11 	(3) it must enable the person or the person's family, a person's legal representative, 
184.12 	or other authorized representative to delay or prevent out-of-home placement of the 
184.13 	person; and
184.14 	(4) it must be consistent with the needs identified in the service agreement, when 
184.15 	applicable.
184.16 	(c) Items and services purchased with support grants must be those for which there 
184.17 	are no other public or private funds available to the person or the person's family, a person's 
184.18 	legal representative, or other authorized representative. Fees assessed to the person or the 
184.19 	person's family for health and human services are not reimbursable through the grant.
184.20 	(d) In approving or denying applications, the local agency shall consider the 
184.21 	following factors:
184.22 	(1) the extent and areas of the person's functional limitations;
184.23 	(2) the degree of need in the home environment for additional support; and
184.24 	(3) the potential effectiveness of the grant to maintain and support the person in the 
184.25 	family environment or the person's own home.
184.26 	(e) At the time of application to the program or screening for other services, 
184.27 	the person or the person's family, a person's legal representative, or other authorized 
184.28 	representative shall be provided sufficient information to ensure an informed choice 
184.29 	of alternatives by the person, the person's legal representative, or other authorized 
184.30 	representative, if any, or the person's family. The application shall be made to the local 
184.31 	agency and shall specify the needs of the person and family, the form and amount of 
184.32 	grant requested, the items and services to be reimbursed, and evidence of eligibility for 
184.33 	medical assistance.
184.34 	(f) Upon approval of an application by the local agency and agreement on a support 
184.35 	plan for the person or person's family, the local agency shall make grants to the person or 
185.1 	the person's family. The grant shall be in an amount for the direct costs of the services or 
185.2 	supports outlined in the service agreement.
185.3 	(g) Reimbursable costs shall not include costs for resources already available, such as 
185.4 	special education classes, day training and habilitation, case management, other services to 
185.5 	which the person is entitled, medical costs covered by insurance or other health programs, 
185.6 	or other resources usually available at no cost to the person or the person's family.
185.7 	(h) The state of Minnesota, the county boards participating in the consumer 
185.8 	support grant program, or the agencies acting on behalf of the county boards in the 
185.9 	implementation and administration of the consumer support grant program shall not be 
185.10 	liable for damages, injuries, or liabilities sustained through the purchase of support by 
185.11 	the individual, the individual's family, or the authorized representative under this section 
185.12 	with funds received through the consumer support grant program. Liabilities include but 
185.13 	are not limited to: workers' compensation liability, the Federal Insurance Contributions 
185.14 	Act (FICA), or the Federal Unemployment Tax Act (FUTA). For purposes of this section, 
185.15 	participating county boards and agencies acting on behalf of county boards are exempt 
185.16 	from the provisions of section 268.04.

185.17 	Sec. 7. Minnesota Statutes 2006, section 256.476, subdivision 5, is amended to read:
185.18 		Subd. 5.Reimbursement, allocations, and reporting. (a) For the purpose of 
185.19 	transferring persons to the consumer support grant program from the developmental 
185.20 	disability family support program and personal care assistant services, home health 
185.21 	aide services, or private duty nursing services, the amount of funds transferred by the 
185.22 	commissioner between the developmental disability family support program account, the 
185.23 	medical assistance account, or the consumer support grant account shall be based on each 
185.24 	county's participation in transferring persons to the consumer support grant program 
185.25 	from those programs and services.
185.26 	(b) At the beginning of each fiscal year, county allocations for consumer support 
185.27 	grants shall be based on:
185.28 	(1) the number of persons to whom the county board expects to provide consumer 
185.29 	supports grants;
185.30 	(2) their eligibility for current program and services;
185.31 	(3) the amount of nonfederal dollars allowed under subdivision 11; and
185.32 	(4) projected dates when persons will start receiving grants. County allocations shall 
185.33 	be adjusted periodically by the commissioner based on the actual transfer of persons or 
185.34 	service openings, and the nonfederal dollars associated with those persons or service 
185.35 	openings, to the consumer support grant program.
186.1 	(c) The amount of funds transferred by the commissioner from the medical 
186.2 	assistance account for an individual may be changed if it is determined by the county or its 
186.3 	agent that the individual's need for support has changed.
186.4 	(d) The authority to utilize funds transferred to the consumer support grant account 
186.5 	for the purposes of implementing and administering the consumer support grant program 
186.6 	will not be limited or constrained by the spending authority provided to the program 
186.7 	of origination.
186.8 	(e) The commissioner may use up to five percent of each county's allocation, as 
186.9 	adjusted, for payments for administrative expenses, to be paid as a proportionate addition 
186.10 	to reported direct service expenditures.
186.11 	(f) The county allocation for each individual or individual's family cannot exceed 
186.12 	the amount allowed under subdivision 11.
186.13 	(g) The commissioner may recover, suspend, or withhold payments if the county 
186.14 	board, local agency, or grantee does not comply with the requirements of this section.
186.15 	(h) Grant funds unexpended by consumers shall return to the state once a year. The 
186.16 	annual return of unexpended grant funds shall occur in the quarter following the end of 
186.17 	the state fiscal year.

186.18 	Sec. 8. Minnesota Statutes 2006, section 256.476, subdivision 10, is amended to read:
186.19 		Subd. 10.Consumer responsibilities. Persons receiving grants under this section 
186.20 	shall:
186.21 	(1) spend the grant money in a manner consistent with their agreement with the 
186.22 	local agency;
186.23 	(2) notify the local agency of any necessary changes in the grant or the items on 
186.24 	which it is spent;
186.25 	(3) notify the local agency of any decision made by the person, the a person's legal 
186.26 	representative, or the person's family or other authorized representative that would change 
186.27 	their eligibility for consumer support grants;
186.28 	(4) arrange and pay for supports; and
186.29 	(5) inform the local agency of areas where they have experienced difficulty securing 
186.30 	or maintaining supports.

186.31 	Sec. 9. Minnesota Statutes 2006, section 256.974, is amended to read:
186.32 	256.974 OFFICE OF OMBUDSMAN FOR OLDER MINNESOTANS
186.33 	LONG-TERM CARE; LOCAL PROGRAMS.
187.1 	The ombudsman for older Minnesotans long-term care serves in the classified service 
187.2 	under section 256.01, subdivision 7, in an office within the Minnesota Board on Aging that 
187.3 	incorporates the long-term care ombudsman program required by the Older Americans 
187.4 	Act, Public Law 100-75 as amended, United States Code, title 42, section 3027(a)(12)
187.5 	(9) and 3058g (a), and established within the Minnesota Board on Aging. The Minnesota 
187.6 	Board on Aging may make grants to and designate local programs for the provision of 
187.7 	ombudsman services to clients in county or multicounty areas. The local program may not 
187.8 	be an agency engaged in the provision of nursing home care, hospital care, or home care 
187.9 	services either directly or by contract, or have the responsibility for planning, coordinating, 
187.10 	funding, or administering nursing home care, hospital care, or home care services.

187.11 	Sec. 10. Minnesota Statutes 2006, section 256.9741, subdivision 1, is amended to read:
187.12 		Subdivision 1.Long-term care facility. "Long-term care facility" means a nursing 
187.13 	home licensed under sections 144A.02 to 144A.10or; a boarding care home licensed 
187.14 	under sections 144.50 to 144.56; or a licensed or registered residential setting that provides 
187.15 	or arranges for the provision of home care services. 

187.16 	Sec. 11. Minnesota Statutes 2006, section 256.9741, subdivision 3, is amended to read:
187.17 		Subd. 3.Client. "Client" means an individual who requests, or on whose behalf a 
187.18 	request is made for, ombudsman services and is (a) a resident of a long-term care facility 
187.19 	or (b) a Medicare beneficiary who requests assistance relating to access, discharge, or 
187.20 	denial of inpatient or outpatient services, or (c) an individual reserving, receiving, or 
187.21 	requesting a home care service.

187.22 	Sec. 12. Minnesota Statutes 2006, section 256.9742, subdivision 3, is amended to read:
187.23 		Subd. 3.Posting. Every long-term care facility and acute care facility shall post in a 
187.24 	conspicuous place the address and telephone number of the office. A home care service 
187.25 	provider shall provide all recipients, including those in elderly housing with services 
187.26 	under chapter 144D, with the address and telephone number of the office. Counties shall 
187.27 	provide clients receiving a consumer support grant or a service allowancelong-term care 
187.28 	consultation services under section 256B.0911 or home and community-based services 
187.29 	through a state or federally funded program with the name, address, and telephone number 
187.30 	of the office. The posting or notice is subject to approval by the ombudsman.

187.31 	Sec. 13. Minnesota Statutes 2006, section 256.9742, subdivision 4, is amended to read:
188.1 		Subd. 4.Access to long-term care and acute care facilities and clients. The 
188.2 	ombudsman or designee may:
188.3 	(1) enter any long-term care facility without notice at any time;
188.4 	(2) enter any acute care facility without notice during normal business hours;
188.5 	(3) enter any acute care facility without notice at any time to interview a patient or 
188.6 	observe services being provided to the patient as part of an investigation of a matter that is 
188.7 	within the scope of the ombudsman's authority, but only if the ombudsman's or designee's 
188.8 	presence does not intrude upon the privacy of another patient or interfere with routine 
188.9 	hospital services provided to any patient in the facility;
188.10 	(4) communicate privately and without restriction with any client in accordance 
188.11 	with section 144.651, as long as the ombudsman has the client's consent for such 
188.12 	communication; 
188.13 	(5) inspect records of a long-term care facility, home care service provider, or acute 
188.14 	care facility that pertain to the care of the client according to sectionssection 144.335and 
188.15 	144.651; and 
188.16 	(6) with the consent of a client or client's legal guardian, the ombudsman or 
188.17 	designated staff shall have access to review records pertaining to the care of the client 
188.18 	according to sectionssection 144.335and 144.651. If a client cannot consent and has no 
188.19 	legal guardian, access to the records is authorized by this section. 
188.20 	A person who denies access to the ombudsman or designee in violation of this 
188.21 	subdivision or aids, abets, invites, compels, or coerces another to do so is guilty of a 
188.22 	misdemeanor.

188.23 	Sec. 14. Minnesota Statutes 2006, section 256.9742, subdivision 6, is amended to read:
188.24 		Subd. 6.Prohibition against discrimination or retaliation. (a) No entity shall take 
188.25 	discriminatory, disciplinary, or retaliatory action against an employee or volunteer, or a 
188.26 	patient, resident, or guardian or family member of a patient, resident, or guardian for filing 
188.27 	in good faith a complaint with or providing information to the ombudsman or designee 
188.28 	including volunteers. A person who violates this subdivision or who aids, abets, invites, 
188.29 	compels, or coerces another to do so is guilty of a misdemeanor.
188.30 	(b) There shall be a rebuttable presumption that any adverse action, as defined below, 
188.31 	within 90 days of report, is discriminatory, disciplinary, or retaliatory. For the purpose 
188.32 	of this clause, the term "adverse action" refers to action taken by the entity involved in a 
188.33 	report against the person making the report or the person with respect to whom the report 
188.34 	was made because of the report, and includes, but is not limited to:
188.35 	(1) discharge or transfer from a facility;
189.1 	(2) termination of service;
189.2 	(3) restriction or prohibition of access to the facility or its residents;
189.3 	(4) discharge from or termination of employment;
189.4 	(5) demotion or reduction in remuneration for services; and
189.5 	(6) any restriction of rights set forth in section 144.651or,144A.44, or 144A.751. 

189.6 	Sec. 15. Minnesota Statutes 2006, section 256.9744, subdivision 1, is amended to read:
189.7 		Subdivision 1.Classification. Except as provided in this section, data maintained 
189.8 	by the office under sections 256.974 to 256.9744 are private data on individuals or 
189.9 	nonpublic data as defined in section 13.02, subdivision 9 or 12, and must be maintained 
189.10 	in accordance with the requirements of Public Law 100-75 the Older Americans Act, as 
189.11 	amended, United States Code, title 42, section 3027(a)(12)(D) 3058g(d).

189.12 	Sec. 16. Minnesota Statutes 2006, section 256.975, is amended by adding a subdivision 
189.13 	to read:
189.14 		Subd. 2a.Electronic meetings. (a) Notwithstanding section 13D.01, the Minnesota 
189.15 	Board on Aging may conduct a meeting of its members by telephone or other electronic 
189.16 	means so long as the following conditions are met:
189.17 	(1) all members of the board participating in the meeting, wherever their physical 
189.18 	location, can hear one another and can hear all discussion and testimony;
189.19 	(2) members of the public present at the regular meeting location of the board can 
189.20 	hear all discussion and testimony and all votes of members of the board;
189.21 	(3) at least one member of the board is physically present at the regular meeting 
189.22 	location; and
189.23 	(4) all votes are conducted by roll call, so that each member's vote on each issue 
189.24 	can be identified and recorded.
189.25 	(b) Each member of the board participating in a meeting by telephone or other 
189.26 	electronic means is considered present at the meeting for purposes of determining a 
189.27 	quorum and participating in all proceedings.
189.28 	(c) If telephone or other electronic means is used to conduct a meeting, the board, 
189.29 	to the extent practical, shall allow a person to monitor the meeting electronically from 
189.30 	a remote location. The board may require the person making a connection to pay for 
189.31 	documented marginal costs that the board incurs as a result of the additional connection.
189.32 	(d) If telephone or other electronic means is used to conduct a regular, special, or 
189.33 	emergency meeting, the board shall provide notice of the regular meeting location, of the 
189.34 	fact that some members may participate by telephone or other electronic means, and of 
190.1 	the provisions of paragraph (c). The timing and method of providing notice is governed 
190.2 	by section 13D.04.

190.3 	Sec. 17. Minnesota Statutes 2006, section 256B.0621, subdivision 11, is amended to 
190.4 	read:
190.5 		Subd. 11.Data use agreement; Notice of relocation assistance. The commissioner 
190.6 	shall execute a data use agreement with the Centers for Medicare and Medicaid Services 
190.7 	to obtain the long-term care minimum data set data to assist residents of nursing facilities 
190.8 	who have establish a process with the Centers for Independent Living that allows a person 
190.9 	residing in a Minnesota nursing facility to receive needed information, consultation, and 
190.10 	assistance from one of the centers about the available community support options that may 
190.11 	enable the person to relocate to the community, if the person: (1) is under the age of 65, 
190.12 	(2) has indicated a desire to live in the community. The commissioner shall in turn enter 
190.13 	into agreements with the Centers for Independent Living to provide information about 
190.14 	assistance for persons who want to move to the community. The commissioner shall work 
190.15 	with the Centers for Independent Living on both the content of the information to be 
190.16 	provided and privacy protections for the individual residents, and (3) has signed a release 
190.17 	of information authorized by the person or the person's appointed legal representative. 
190.18 	The process established under this subdivision shall be coordinated with the long-term 
190.19 	care consultation service activities established in section 256B.0911.

190.20 	Sec. 18. Minnesota Statutes 2006, section 256B.0625, subdivision 23, is amended to 
190.21 	read:
190.22 		Subd. 23.Day treatment services. Medical assistance covers day treatment 
190.23 	services as specified in sections 245.462, subdivision 8, and 245.4871, subdivision 10, that 
190.24 	are provided under contract with the county board. Notwithstanding Minnesota Rules, 
190.25 	part 9505.0323, subpart 15, the commissioner may set authorization thresholds for day 
190.26 	treatment for adults according to section 256B.0625, subdivision 25. Notwithstanding 
190.27 	Minnesota Rules, part 9505.0323, subpart 15, effective July 1, 2004, medical assistance 
190.28 	covers day treatment services for children as specified under section 256B.0943. 

190.29 	Sec. 19. Minnesota Statutes 2006, section 256B.0655, subdivision 1f, is amended to 
190.30 	read:
190.31 		Subd. 1f.Personal care assistant. (a) "Personal care assistant" means a person who:
191.1 	(1) is at least 18 years old, except for persons 16 to 18 years of age who participated 
191.2 	in a related school-based job training program or have completed a certified home health 
191.3 	aide competency evaluation;
191.4 	(2) is able to effectively communicate with the recipient and personal care provider 
191.5 	organization;
191.6 	(3) effective July 1, 1996, has completed one of the training requirements as 
191.7 	specified in Minnesota Rules, part 9505.0335, subpart 3, items A to E paragraph (b);
191.8 	(4) has the ability to, and provides covered personal care assistant services according 
191.9 	to the recipient's care plan, responds appropriately to recipient needs, and reports changes 
191.10 	in the recipient's condition to the supervising qualified professional or physician;
191.11 	(5) is not a consumer of personal care assistant services;
191.12 	(6) maintains daily written records detailing:
191.13 	(i) the actual services provided to the recipient; and
191.14 	(ii) the amount of time spent providing the services; and
191.15 	(7) is subject to criminal background checks and procedures specified in chapter 
191.16 	245C.
191.17 	(b) Personal care assistant training must include successful completion of one or 
191.18 	more training requirements in:
191.19 	(1) a nursing assistant training program or its equivalent for which competency as a 
191.20 	nursing assistant is determined according to a test administered by the Minnesota State 
191.21 	Board of Technical Colleges;
191.22 	(2) a homemaker home health aide preservice training program using a curriculum 
191.23 	recommended by the Department of Health;
191.24 	(3) an accredited educational program for registered nurses or licensed practical 
191.25 	nurses;
191.26 	(4) a training program that provides the assistant with skills required to perform 
191.27 	personal care assistant services specified in subdivision 2; or
191.28 	(5) a determination by the personal care provider that the assistant has, through 
191.29 	training or experience, the skills required to perform the personal care services specified in 
191.30 	subdivision 2.

191.31 	Sec. 20. Minnesota Statutes 2006, section 256B.0655, is amended by adding a 
191.32 	subdivision to read:
191.33 		Subd. 12.Personal care provider responsibilities. The personal care provider 
191.34 	shall:
192.1 	(1) employ or contract with services staff to provide personal care services and to 
192.2 	train services staff as necessary;
192.3 	(2) supervise the personal care services as provided in subdivision 2, paragraph (f);
192.4 	(3) employ a personal care assistant that a qualified recipient brings to the personal 
192.5 	care provider as the recipient's choice of assistant and who meets the employment 
192.6 	qualifications of the provider, except that a personal care provider who must comply with 
192.7 	the requirements of a governmental personnel administration system is exempt from 
192.8 	this clause;
192.9 	(4) bill the medical assistance program for a personal care service by the personal 
192.10 	care assistant and a visit by the qualified professional supervising the personal care 
192.11 	assistant;
192.12 	(5) establish a grievance mechanism to resolve consumer complaints about personal 
192.13 	care services, including the personal care provider's decision whether to employ the 
192.14 	qualified recipient's choice of a personal care assistant;
192.15 	(6) keep records as required in Minnesota Rules, parts 9505.2160 to 9505.2195;
192.16 	(7) perform functions and provide services specified in the personal care provider's 
192.17 	contract;
192.18 	(8) comply with applicable rules and statutes; and
192.19 	(9) perform other functions as necessary to carry out the responsibilities in clauses 
192.20 	(1) to (8).

192.21 	Sec. 21. Minnesota Statutes 2006, section 256B.0655, is amended by adding a 
192.22 	subdivision to read:
192.23 		Subd. 13.Personal care provider; employment prohibition. A personal care 
192.24 	provider shall not employ a person to provide personal care service for a qualified 
192.25 	recipient if the person:
192.26 	(1) refuses to provide full disclosure of criminal history records as specified in 
192.27 	subdivision 1g, clause (1);
192.28 	(2) has been convicted of a crime that directly relates to the occupation of providing 
192.29 	personal care services to a qualified recipient;
192.30 	(3) has jeopardized the health or welfare of a vulnerable adult through physical 
192.31 	abuse, sexual abuse, or neglect as defined in section 626.557; or
192.32 	(4) is misusing or is dependent on mood-altering chemicals, including alcohol, to 
192.33 	the extent that the personal care provider knows or has reason to believe that the use of 
192.34 	chemicals has a negative effect on the person's ability to provide personal care services 
193.1 	or the use of chemicals is apparent during the hours the person is providing personal 
193.2 	care services.

193.3 	Sec. 22. Minnesota Statutes 2006, section 256B.0655, is amended by adding a 
193.4 	subdivision to read:
193.5 		Subd. 14.Supervision of personal care services. A personal care service to a 
193.6 	qualified recipient as described in subdivision 4 shall be under the supervision of a 
193.7 	qualified professional who shall have the following duties:
193.8 	(1) ensure that the personal care assistant is capable of providing the required 
193.9 	personal care services through direct observation of the assistant's work or through 
193.10 	consultation with the qualified recipient;
193.11 	(2) ensure that the personal care assistant is knowledgeable about the plan of 
193.12 	personal care services before the personal care assistant performs personal care services;
193.13 	(3) ensure that the personal care assistant is knowledgeable about essential 
193.14 	observations of the recipient's health, and about any conditions that should be immediately 
193.15 	brought to the attention of either the qualified professional or the attending physician;
193.16 	(4) evaluate the personal care services of a recipient through direct observation of 
193.17 	the personal care assistant's work or through consultation with the qualified recipient. 
193.18 	Evaluation shall be made:
193.19 	(i) within 14 days after the placement of a personal care assistant with the qualified 
193.20 	recipient;
193.21 	(ii) at least once every 30 days during the first 90 days after the qualified recipient 
193.22 	first receives personal care services according to the plan of personal care service; and
193.23 	(iii) at least once every 120 days following the period of evaluations in item (ii). The 
193.24 	qualified professional shall record in writing the results of the evaluation and actions taken 
193.25 	to correct any deficiencies in the work of the personal care assistant;
193.26 	(5) review, together with the recipient, and revise, as necessary, the plan of 
193.27 	personal care services at least once every 120 days after a plan of personal care services 
193.28 	is developed;
193.29 	(6) ensure that the personal care assistant and recipient are knowledgeable about a 
193.30 	change in the plan of personal care services;
193.31 	(7) ensure that records are kept, showing the services provided to the recipient 
193.32 	by the personal care assistant as described in subdivision 2, paragraph (f), and the time 
193.33 	spent providing the services;
193.34 	(8) determine that a qualified recipient is still capable of directing the recipient's 
193.35 	own care or has a responsible party; and
194.1 	(9) determine with a physician that a recipient is a qualified recipient.

194.2 	Sec. 23. Minnesota Statutes 2006, section 256B.0911, subdivision 3b, is amended to 
194.3 	read:
194.4 		Subd. 3b.Transition assistance. (a) A long-term care consultation team shall 
194.5 	provide assistance to persons residing in a nursing facility, hospital, regional treatment 
194.6 	center, or intermediate care facility for persons with developmental disabilities who 
194.7 	request or are referred for assistance. Transition assistance must include assessment, 
194.8 	community support plan development, referrals to Minnesota health care programs, 
194.9 	and referrals to programs that provide assistance with housing. Transition assistance 
194.10 	must also include information about the Centers for Independent Living and about other 
194.11 	organizations that can provide assistance with relocation efforts, and information about 
194.12 	contacting these organizations to obtain their assistance and support. 
194.13 	(b) The county shall develop transition processes with institutional social workers 
194.14 	and discharge planners to ensure that:
194.15 	(1) persons admitted to facilities receive information about transition assistance 
194.16 	that is available;
194.17 	(2) the assessment is completed for persons within ten working days of the date of 
194.18 	request or recommendation for assessment; and
194.19 	(3) there is a plan for transition and follow-up for the individual's return to the 
194.20 	community. The plan must require notification of other local agencies when a person 
194.21 	who may require assistance is screened by one county for admission to a facility located 
194.22 	in another county.
194.23 	(c) If a person who is eligible for a Minnesota health care program is admitted to a 
194.24 	nursing facility, the nursing facility must include a consultation team member or the case 
194.25 	manager in the discharge planning process.

194.26 	Sec. 24. Minnesota Statutes 2006, section 256B.0911, subdivision 4b, is amended to 
194.27 	read:
194.28 		Subd. 4b.Exemptions and emergency admissions. (a) Exemptions from the 
194.29 	federal screening requirements outlined in subdivision 4a, paragraphs (b) and (c), are 
194.30 	limited to:
194.31 	(1) a person who, having entered an acute care facility from a certified nursing 
194.32 	facility, is returning to a certified nursing facility;
194.33 	(2) a person transferring from one certified nursing facility in Minnesota to another 
194.34 	certified nursing facility in Minnesota; and
195.1 	(3) a person, 21 years of age or older, who satisfies the following criteria, as specified 
195.2 	in Code of Federal Regulations, title 42, section 483.106(b)(2):
195.3 	(i) the person is admitted to a nursing facility directly from a hospital after receiving 
195.4 	acute inpatient care at the hospital;
195.5 	(ii) the person requires nursing facility services for the same condition for which 
195.6 	care was provided in the hospital; and
195.7 	(iii) the attending physician has certified before the nursing facility admission that 
195.8 	the person is likely to receive less than 30 days of nursing facility services.
195.9 	(b) Persons who are exempt from preadmission screening for purposes of level of 
195.10 	care determination include:
195.11 	(1) persons described in paragraph (a);
195.12 	(2) an individual who has a contractual right to have nursing facility care paid for 
195.13 	indefinitely by the veterans' administration;
195.14 	(3) an individual enrolled in a demonstration project under section 256B.69, 
195.15 	subdivision 8, at the time of application to a nursing facility; and
195.16 	(4) an individual currently being served under the alternative care program or under 
195.17 	a home and community-based services waiver authorized under section 1915(c) of the 
195.18 	federal Social Security Act; and.
195.19 	(5) individuals admitted to a certified nursing facility for a short-term stay, which 
195.20 	is expected to be 14 days or less in duration based upon a physician's certification, and 
195.21 	who have been assessed and approved for nursing facility admission within the previous 
195.22 	six months. This exemption applies only if the consultation team member determines at 
195.23 	the time of the initial assessment of the six-month period that it is appropriate to use the 
195.24 	nursing facility for short-term stays and that there is an adequate plan of care for return to 
195.25 	the home or community-based setting. If a stay exceeds 14 days, the individual must be 
195.26 	referred no later than the first county working day following the 14th resident day for a 
195.27 	screening, which must be completed within five working days of the referral. The payment 
195.28 	limitations in subdivision 7 apply to an individual found at screening to not meet the level 
195.29 	of care criteria for admission to a certified nursing facility.
195.30 	(c) Persons admitted to a Medicaid-certified nursing facility from the community 
195.31 	on an emergency basis as described in paragraph (d) or from an acute care facility on a 
195.32 	nonworking day must be screened the first working day after admission.
195.33 	(d) Emergency admission to a nursing facility prior to screening is permitted when 
195.34 	all of the following conditions are met:
195.35 	(1) a person is admitted from the community to a certified nursing or certified 
195.36 	boarding care facility during county nonworking hours;
196.1 	(2) a physician has determined that delaying admission until preadmission screening 
196.2 	is completed would adversely affect the person's health and safety;
196.3 	(3) there is a recent precipitating event that precludes the client from living safely in 
196.4 	the community, such as sustaining an injury, sudden onset of acute illness, or a caregiver's 
196.5 	inability to continue to provide care;
196.6 	(4) the attending physician has authorized the emergency placement and has 
196.7 	documented the reason that the emergency placement is recommended; and
196.8 	(5) the county is contacted on the first working day following the emergency 
196.9 	admission.
196.10 	Transfer of a patient from an acute care hospital to a nursing facility is not considered 
196.11 	an emergency except for a person who has received hospital services in the following 
196.12 	situations: hospital admission for observation, care in an emergency room without hospital 
196.13 	admission, or following hospital 24-hour bed care.
196.14 	(e) A nursing facility must provide a written notice to persons who satisfy the criteria 
196.15 	in paragraph (a), clause (3),information to all persons admitted regarding the person's 
196.16 	right to request and receive long-term care consultation services as defined in subdivision 
196.17 	1a. The noticeinformation must be provided prior to the person's discharge from the 
196.18 	facility and in a format specified by the commissioner.

196.19 	Sec. 25. Minnesota Statutes 2006, section 256B.0911, subdivision 4c, is amended to 
196.20 	read:
196.21 		Subd. 4c.Screening requirements. (a) A person may be screened for nursing 
196.22 	facility admission by telephone or in a face-to-face screening interview. Consultation team 
196.23 	members shall identify each individual's needs using the following categories:
196.24 	(1) the person needs no face-to-face screening interview to determine the need 
196.25 	for nursing facility level of care based on information obtained from other health care 
196.26 	professionals;
196.27 	(2) the person needs an immediate face-to-face screening interview to determine the 
196.28 	need for nursing facility level of care and complete activities required under subdivision 
196.29 	4a; or
196.30 	(3) the person may be exempt from screening requirements as outlined in subdivision 
196.31 	4b, but will need transitional assistance after admission or in-person follow-along after 
196.32 	a return home.
196.33 	(b) Persons admitted on a nonemergency basis to a Medicaid-certified nursing 
196.34 	facility must be screened prior to admission.
197.1 	(c) The long-term care consultation team shall recommend a case mix classification 
197.2 	for persons admitted to a certified nursing facility when sufficient information is received 
197.3 	to make that classification. The nursing facility is authorized to conduct all case mix 
197.4 	assessments for persons who have been screened prior to admission for whom the county 
197.5 	did not recommend a case mix classification. The nursing facility is authorized to conduct 
197.6 	all case mix assessments for persons admitted to the facility prior to a preadmission 
197.7 	screening. The county retains the responsibility of distributing appropriate case mix 
197.8 	forms to the nursing facility.
197.9 	(d) (c) The county screening or intake activity must include processes to identify 
197.10 	persons who may require transition assistance as described in subdivision 3b.

197.11 	Sec. 26. Minnesota Statutes 2006, section 256B.0911, subdivision 6, is amended to 
197.12 	read:
197.13 		Subd. 6.Payment for long-term care consultation services. (a) The total payment 
197.14 	for each county must be paid monthly by certified nursing facilities in the county. The 
197.15 	monthly amount to be paid by each nursing facility for each fiscal year must be determined 
197.16 	by dividing the county's annual allocation for long-term care consultation services by 12 
197.17 	to determine the monthly payment and allocating the monthly payment to each nursing 
197.18 	facility based on the number of licensed beds in the nursing facility. Payments to counties 
197.19 	in which there is no certified nursing facility must be made by increasing the payment 
197.20 	rate of the two facilities located nearest to the county seat.
197.21 	(b) The commissioner shall include the total annual payment determined under 
197.22 	paragraph (a) for each nursing facility reimbursed under section 256B.431 or 256B.434
197.23 	according to section 256B.431, subdivision 2b, paragraph (g), or 256B.435.
197.24 	(c) In the event of the layaway, delicensure and decertification, or removal from 
197.25 	layaway of 25 percent or more of the beds in a facility, the commissioner may adjust 
197.26 	the per diem payment amount in paragraph (b) and may adjust the monthly payment 
197.27 	amount in paragraph (a). The effective date of an adjustment made under this paragraph 
197.28 	shall be on or after the first day of the month following the effective date of the layaway, 
197.29 	delicensure and decertification, or removal from layaway.
197.30 	(d) Payments for long-term care consultation services are available to the county 
197.31 	or counties to cover staff salaries and expenses to provide the services described in 
197.32 	subdivision 1a. The county shall employ, or contract with other agencies to employ, within 
197.33 	the limits of available funding, sufficient personnel to provide long-term care consultation 
197.34 	services while meeting the state's long-term care outcomes and objectives as defined in 
197.35 	section 256B.0917, subdivision 1. The county shall be accountable for meeting local 
198.1 	objectives as approved by the commissioner in the biennial home and community-based 
198.2 	services quality assurance plan on a form provided by the commissioner.
198.3 	(e) Notwithstanding section 256B.0641, overpayments attributable to payment of the 
198.4 	screening costs under the medical assistance program may not be recovered from a facility.
198.5 	(f) The commissioner of human services shall amend the Minnesota medical 
198.6 	assistance plan to include reimbursement for the local consultation teams.
198.7 	(g) The county may bill, as case management services, assessments, support 
198.8 	planning, and follow-along provided to persons determined to be eligible for case 
198.9 	management under Minnesota health care programs. No individual or family member 
198.10 	shall be charged for an initial assessment or initial support plan development provided 
198.11 	under subdivision 3a or 3b.

198.12 	Sec. 27. Minnesota Statutes 2006, section 256B.0911, is amended by adding a 
198.13 	subdivision to read:
198.14 		Subd. 6a.Withholding. If any provider obligated to pay the long-term care 
198.15 	consultation amount as described in subdivision 6 is more than two months delinquent in 
198.16 	the timely payment of the monthly installment, the commissioner may withhold payments, 
198.17 	penalties, and interest in accordance with the methods outlined in section 256.9657, 
198.18 	subdivision 7a. Any amount withheld under this provision must be returned to the county 
198.19 	to whom the delinquent payments were due.

198.20 	Sec. 28. Minnesota Statutes 2006, section 256B.0911, subdivision 7, is amended to 
198.21 	read:
198.22 		Subd. 7.Reimbursement for certified nursing facilities. (a) Medical assistance 
198.23 	reimbursement for nursing facilities shall be authorized for a medical assistance recipient 
198.24 	only if a preadmission screening has been conducted prior to admission or the county has 
198.25 	authorized an exemption. Medical assistance reimbursement for nursing facilities shall 
198.26 	not be provided for any recipient who the local screener has determined does not meet the 
198.27 	level of care criteria for nursing facility placement or, if indicated, has not had a level II 
198.28 	OBRA evaluation as required under the federal Omnibus Budget Reconciliation Act of 
198.29 	1987 completed unless an admission for a recipient with mental illness is approved by the 
198.30 	local mental health authority or an admission for a recipient with developmental disability 
198.31 	is approved by the state developmental disability authority.
198.32 	(b) The nursing facility must not bill a person who is not a medical assistance 
198.33 	recipient for resident days that preceded the date of completion of screening activities as 
199.1 	required under subdivisions 4a, 4b, and 4c. The nursing facility must include unreimbursed 
199.2 	resident days in the nursing facility resident day totals reported to the commissioner.
199.3 	(c) The commissioner shall make a request to the Centers for Medicare and Medicaid 
199.4 	Services for a waiver allowing team approval of Medicaid payments for certified nursing 
199.5 	facility care. An individual has a choice and makes the final decision between nursing 
199.6 	facility placement and community placement after the screening team's recommendation, 
199.7 	except as provided in subdivision 4a, paragraph (c).

199.8 	Sec. 29. Minnesota Statutes 2006, section 256B.0913, subdivision 4, is amended to 
199.9 	read:
199.10 		Subd. 4.Eligibility for funding for services for nonmedical assistance recipients.
 199.11 	(a) Funding for services under the alternative care program is available to persons who 
199.12 	meet the following criteria:
199.13 	(1) the person has been determined by a community assessment under section 
199.14 	256B.0911 to be a person who would require the level of care provided in a nursing 
199.15 	facility, but for the provision of services under the alternative care program;
199.16 	(2) the person is age 65 or older;
199.17 	(3) the person would be eligible for medical assistance within 135 days of admission 
199.18 	to a nursing facility;
199.19 	(4) the person is not ineligible for the payment of long-term care services by the
199.20 	medical assistance program due to an asset transfer penalty under section 256B.0595 or 
199.21 	equity interest in the home exceeding $500,000 as stated in section 256B.056;
199.22 	(5) the person needs long-term care services that are not funded through other state 
199.23 	or federal funding;
199.24 	(6) the monthly cost of the alternative care services funded by the program for 
199.25 	this person does not exceed 75 percent of the monthly limit described under section 
199.26 	256B.0915, subdivision 3a. This monthly limit does not prohibit the alternative care client 
199.27 	from payment for additional services, but in no case may the cost of additional services 
199.28 	purchased under this section exceed the difference between the client's monthly service 
199.29 	limit defined under section 256B.0915, subdivision 3, and the alternative care program 
199.30 	monthly service limit defined in this paragraph. If medical care-related supplies and 
199.31 	equipment or environmental modifications and adaptations are or will be purchased for 
199.32 	an alternative care services recipient, the costs may be prorated on a monthly basis for 
199.33 	up to 12 consecutive months beginning with the month of purchase. If the monthly cost 
199.34 	of a recipient's other alternative care services exceeds the monthly limit established in 
199.35 	this paragraph, the annual cost of the alternative care services shall be determined. In this 
200.1 	event, the annual cost of alternative care services shall not exceed 12 times the monthly 
200.2 	limit described in this paragraph; and
200.3 	(7) the person is making timely payments of the assessed monthly fee.
200.4 	A person is ineligible if payment of the fee is over 60 days past due, unless the person 
200.5 	agrees to:
200.6 	(i) the appointment of a representative payee;
200.7 	(ii) automatic payment from a financial account;
200.8 	(iii) the establishment of greater family involvement in the financial management of 
200.9 	payments; or
200.10 	(iv) another method acceptable to the county lead agency to ensure prompt fee 
200.11 	payments.
200.12 	The county shall lead agency may extend the client's eligibility as necessary while 
200.13 	making arrangements to facilitate payment of past-due amounts and future premium 
200.14 	payments. Following disenrollment due to nonpayment of a monthly fee, eligibility shall 
200.15 	not be reinstated for a period of 30 days.
200.16 	(b) Alternative care funding under this subdivision is not available for a person 
200.17 	who is a medical assistance recipient or who would be eligible for medical assistance 
200.18 	without a spenddown or waiver obligation. A person whose initial application for medical 
200.19 	assistance and the elderly waiver program is being processed may be served under the 
200.20 	alternative care program for a period up to 60 days. If the individual is found to be eligible 
200.21 	for medical assistance, medical assistance must be billed for services payable under the 
200.22 	federally approved elderly waiver plan and delivered from the date the individual was 
200.23 	found eligible for the federally approved elderly waiver plan. Notwithstanding this 
200.24 	provision, alternative care funds may not be used to pay for any service the cost of which: 
200.25 	(i) is payable by medical assistance; (ii) is used by a recipient to meet a waiver obligation; 
200.26 	or (iii) is used to pay a medical assistance income spenddown for a person who is eligible 
200.27 	to participate in the federally approved elderly waiver program under the special income 
200.28 	standard provision.
200.29 	(c) Alternative care funding is not available for a person who resides in a licensed 
200.30 	nursing home, certified boarding care home, hospital, or intermediate care facility, except 
200.31 	for case management services which are provided in support of the discharge planning 
200.32 	process for a nursing home resident or certified boarding care home resident to assist with 
200.33 	a relocation process to a community-based setting.
200.34 	(d) Alternative care funding is not available for a person whose income is greater 
200.35 	than the maintenance needs allowance under section 256B.0915, subdivision 1d, but equal 
200.36 	to or less than 120 percent of the federal poverty guideline effective July 1 in the fiscal
201.1 	year for which alternative care eligibility is determined, who would be eligible for the 
201.2 	elderly waiver with a waiver obligation.

201.3 	Sec. 30. Minnesota Statutes 2006, section 256B.0913, subdivision 5, is amended to 
201.4 	read:
201.5 		Subd. 5.Services covered under alternative care. Alternative care funding may 
201.6 	be used for payment of costs of:
201.7 	(1) adult day care;
201.8 	(2) home health aide;
201.9 	(3) homemaker services;
201.10 	(4) personal care;
201.11 	(5) case management;
201.12 	(6) respite care;
201.13 	(7) care-related supplies and equipment;
201.14 	(8) meals delivered to the home;
201.15 	(9) nonmedical transportation;
201.16 	(10) nursing services;
201.17 	(11) chore services;
201.18 	(12) companion services;
201.19 	(13) nutrition services;
201.20 	(14) training for direct informal caregivers;
201.21 	(15) telehome care to provide services in their own homes in conjunction with 
201.22 	in-home visits;
201.23 	(16) discretionary services, for which counties may make payment from their 
201.24 	alternative care program allocation or services not otherwise defined in this section 
201.25 	or section 256B.0625, following approval by the commissioner consumer-directed 
201.26 	community services under the alternative care programs which are available statewide and 
201.27 	limited to the average monthly expenditures representative of all alternative care program 
201.28 	participants for the same case mix resident class assigned in the most recent fiscal year for 
201.29 	which complete expenditure data is available;
201.30 	(17) environmental modifications and adaptations; and
201.31 	(18) direct cash payments for which counties may make payment from their 
201.32 	alternative care program allocation to clients for the purpose of purchasing services, 
201.33 	following approval by the commissioner, and subject to the provisions of subdivision 5h, 
201.34 	until approval and implementation of consumer-directed services through the federally 
201.35 	approved elderly waiver plan. Upon implementation, consumer-directed services under 
202.1 	the alternative care program are available statewide and limited to the average monthly 
202.2 	expenditures representative of all alternative care program participants for the same case 
202.3 	mix resident class assigned in the most recent fiscal year for which complete expenditure 
202.4 	data is available discretionary services, for which lead agencies may make payment from 
202.5 	their alternative care program allocation for services not otherwise defined in this section 
202.6 	or section 256B.0625, following approval by the commissioner.
202.7 	Total annual payments for discretionary services and direct cash payments, until 
202.8 	the federally approved consumer-directed service option is implemented statewide, for 
202.9 	all clients within a county may served by a lead agency must not exceed 25 percent of 
202.10 	that county's lead agency's annual alternative care program base allocation. Thereafter, 
202.11 	discretionary services are limited to 25 percent of the county's annual alternative care 
202.12 	program base allocation.

202.13 	Sec. 31. Minnesota Statutes 2006, section 256B.0913, subdivision 5a, is amended to 
202.14 	read:
202.15 		Subd. 5a.Services; service definitions; service standards. (a) Unless specified in 
202.16 	statute, the services, service definitions, and standards for alternative care services shall 
202.17 	be the same as the services, service definitions, and standards specified in the federally 
202.18 	approved elderly waiver plan, except foralternative care does not cover transitional 
202.19 	support services, assisted living services, adult foster care services, and residential care 
202.20 	services and benefits defined under section 256B.0625 that meet primary and acute 
202.21 	health care needs.
202.22 	(b) The county lead agency must ensure that the funds are not used to supplant 
202.23 	or supplement services available through other public assistance or services programs., 
202.24 	including supplementation of client co-pays, deductibles, premiums, or other cost-sharing 
202.25 	arrangements for health-related benefits and services or entitlement programs and services 
202.26 	that are available to the person, but in which they have elected not to enroll. For a provider 
202.27 	of supplies and equipment when the monthly cost of the supplies and equipment is less 
202.28 	than $250, persons or agencies must be employed by or under a contract with the county
202.29 	lead agency or the public health nursing agency of the local board of health in order to 
202.30 	receive funding under the alternative care program. Supplies and equipment may be 
202.31 	purchased from a vendor not certified to participate in the Medicaid program if the cost for 
202.32 	the item is less than that of a Medicaid vendor.
202.33 	(c) Personal care services must meet the service standards defined in the federally 
202.34 	approved elderly waiver plan, except that a county lead agency may contract with a 
202.35 	client's relative who meets the relative hardship waiver requirements or a relative who 
203.1 	meets the criteria and is also the responsible party under an individual service plan that 
203.2 	ensures the client's health and safety and supervision of the personal care services by a 
203.3 	qualified professional as defined in section 256B.0625, subdivision 19c. Relative hardship 
203.4 	is established by the county lead agency when the client's care causes a relative caregiver 
203.5 	to do any of the following: resign from a paying job, reduce work hours resulting in lost 
203.6 	wages, obtain a leave of absence resulting in lost wages, incur substantial client-related 
203.7 	expenses, provide services to address authorized, unstaffed direct care time, or meet 
203.8 	special needs of the client unmet in the formal service plan.

203.9 	Sec. 32. Minnesota Statutes 2006, section 256B.0913, subdivision 8, is amended to 
203.10 	read:
203.11 		Subd. 8.Requirements for individual care plan. (a) The case manager shall 
203.12 	implement the plan of care for each alternative care client and ensure that a client's 
203.13 	service needs and eligibility are reassessed at least every 12 months. The plan shall 
203.14 	include any services prescribed by the individual's attending physician as necessary to 
203.15 	allow the individual to remain in a community setting. In developing the individual's care 
203.16 	plan, the case manager should include the use of volunteers from families and neighbors, 
203.17 	religious organizations, social clubs, and civic and service organizations to support the 
203.18 	formal home care services. The county lead agency shall be held harmless for damages or 
203.19 	injuries sustained through the use of volunteers under this subdivision including workers' 
203.20 	compensation liability. The county of service case manager shall provide documentation 
203.21 	in each individual's plan of care and, if requested, to the commissioner that the most 
203.22 	cost-effective alternatives available have been offered to the individual and that the 
203.23 	individual was free to choose among available qualified providers, both public and private, 
203.24 	including qualified case management or service coordination providers other than those 
203.25 	employed by any county; however, the county or tribe maintains responsibility for prior 
203.26 	authorizing services in accordance with statutory and administrative requirements. The 
203.27 	case manager must give the individual a ten-day written notice of any denial, termination, 
203.28 	or reduction of alternative care services.
203.29 	(b) The county of service or tribe must provide access to and arrange for case 
203.30 	management services, including assuring implementation of the plan. "County of service" 
203.31 	has the meaning given it in Minnesota Rules, part 9505.0015, subpart 11. The county of 
203.32 	service must notify the county of financial responsibility of the approved care plan and 
203.33 	the amount of encumbered funds.

204.1 	Sec. 33. Minnesota Statutes 2006, section 256B.0913, subdivision 9, is amended to 
204.2 	read:
204.3 		Subd. 9.Contracting provisions for providers. Alternative care funds paid to 
204.4 	service providers are subject to audit by the commissioner for fiscal and utilization control.
204.5 	The lead agency must select providers for contracts or agreements using the 
204.6 	following criteria and other criteria established by the county lead agency:
204.7 	(1) the need for the particular services offered by the provider;
204.8 	(2) the population to be served, including the number of clients, the length of time 
204.9 	services will be provided, and the medical condition of clients;
204.10 	(3) the geographic area to be served;
204.11 	(4) quality assurance methods, including appropriate licensure, certification, or 
204.12 	standards, and supervision of employees when needed;
204.13 	(5) rates for each service and unit of service exclusive of county lead agency
204.14 	administrative costs;
204.15 	(6) evaluation of services previously delivered by the provider; and
204.16 	(7) contract or agreement conditions, including billing requirements, cancellation, 
204.17 	and indemnification.
204.18 	The county lead agency must evaluate its own agency services under the criteria 
204.19 	established for other providers.

204.20 	Sec. 34. Minnesota Statutes 2006, section 256B.0913, subdivision 10, is amended to 
204.21 	read:
204.22 		Subd. 10.Allocation formula. (a) The alternative care appropriation for fiscal 
204.23 	years 1992 and beyond shall cover only alternative care eligible clients. By July 1 15 of 
204.24 	each year, the commissioner shall allocate to county agencies the state funds available for 
204.25 	alternative care for persons eligible under subdivision 2.
204.26 	(b) The adjusted base for each county lead agency is the county's lead agency's
204.27 	current fiscal year base allocation plus any targeted funds approved during the current 
204.28 	fiscal year. Calculations for paragraphs (c) and (d) are to be made as follows: for each 
204.29 	county lead agency, the determination of alternative care program expenditures shall be 
204.30 	based on payments for services rendered from April 1 through March 31 in the base year, 
204.31 	to the extent that claims have been submitted and paid by June 1 of that year.
204.32 	(c) If the alternative care program expenditures as defined in paragraph (b) are 95 
204.33 	percent or more of the county's lead agency's adjusted base allocation, the allocation for 
204.34 	the next fiscal year is 100 percent of the adjusted base, plus inflation to the extent that 
204.35 	inflation is included in the state budget.
205.1 	(d) If the alternative care program expenditures as defined in paragraph (b) are less 
205.2 	than 95 percent of the county's lead agency's adjusted base allocation, the allocation 
205.3 	for the next fiscal year is the adjusted base allocation less the amount of unspent funds 
205.4 	below the 95 percent level.
205.5 	(e) If the annual legislative appropriation for the alternative care program is 
205.6 	inadequate to fund the combined county lead agency allocations for a biennium, the 
205.7 	commissioner shall distribute to each county lead agency the entire annual appropriation 
205.8 	as that county's lead agency's percentage of the computed base as calculated in paragraphs 
205.9 	(c) and (d).
205.10 	(f) On agreement between the commissioner and the lead agency, the commissioner 
205.11 	may have discretion to reallocate alternative care base allocations distributed to lead 
205.12 	agencies in which the base amount exceeds program expenditures.

205.13 	Sec. 35. Minnesota Statutes 2006, section 256B.0913, subdivision 11, is amended to 
205.14 	read:
205.15 		Subd. 11.Targeted funding. (a) The purpose of targeted funding is to make 
205.16 	additional money available to counties lead agencies with the greatest need. Targeted 
205.17 	funds are not intended to be distributed equitably among all counties lead agencies, but 
205.18 	rather, allocated to those with long-term care strategies that meet state goals.
205.19 	(b) The funds available for targeted funding shall be the total appropriation for each 
205.20 	fiscal year minus county lead agency allocations determined under subdivision 10 as 
205.21 	adjusted for any inflation increases provided in appropriations for the biennium.
205.22 	(c) The commissioner shall allocate targeted funds to counties lead agencies that 
205.23 	demonstrate to the satisfaction of the commissioner that they have developed feasible 
205.24 	plans to increase alternative care spending. In making targeted funding allocations, the 
205.25 	commissioner shall use the following priorities:
205.26 	(1) counties lead agencies that received a lower allocation in fiscal year 1991 than in 
205.27 	fiscal year 1990. Counties remain in this priority until they have been restored to their 
205.28 	fiscal year 1990 level plus inflation;
205.29 	(2) counties lead agencies that sustain a base allocation reduction for failure to spend 
205.30 	95 percent of the allocation if they demonstrate that the base reduction should be restored;
205.31 	(3) counties lead agencies that propose projects to divert community residents from 
205.32 	nursing home placement or convert nursing home residents to community living; and
205.33 	(4) counties lead agencies that can otherwise justify program growth by 
205.34 	demonstrating the existence of waiting lists, demographically justified needs, or other 
205.35 	unmet needs.
206.1 	(d) Counties Lead agencies that would receive targeted funds according to 
206.2 	paragraph (c) must demonstrate to the commissioner's satisfaction that the funds 
206.3 	would be appropriately spent by showing how the funds would be used to further the 
206.4 	state's alternative care goals as described in subdivision 1, and that the county has the 
206.5 	administrative and service delivery capability to use them.
206.6 	(e) The commissioner shall request applications make applications available for 
206.7 	targeted funds by November 1 of each year. The counties lead agencies selected for 
206.8 	targeted funds shall be notified of the amount of their additional funding. Targeted funds 
206.9 	allocated to a county lead agency in one year shall be treated as part of the county's lead 
206.10 	agency's base allocation for that year in determining allocations for subsequent years. No 
206.11 	reallocations between counties lead agencies shall be made.

206.12 	Sec. 36. Minnesota Statutes 2006, section 256B.0913, subdivision 12, is amended to 
206.13 	read:
206.14 		Subd. 12.Client fees. (a) A fee is required for all alternative care eligible clients 
206.15 	to help pay for the cost of participating in the program. The amount of the fee for the 
206.16 	alternative care client shall be determined as follows:
206.17 	(1) when the alternative care client's income less recurring and predictable medical 
206.18 	expenses is less than 100 percent of the federal poverty guideline effective on July 1 of 
206.19 	the state fiscal year in which the fee is being computed, and total assets are less than 
206.20 	$10,000, the fee is zero;
206.21 	(2) when the alternative care client's income less recurring and predictable medical 
206.22 	expenses is equal to or greater than 100 percent but less than 150 percent of the federal 
206.23 	poverty guideline effective on July 1 of the state fiscal year in which the fee is being 
206.24 	computed, and total assets are less than $10,000, the fee is five percent of the cost of 
206.25 	alternative care services;
206.26 	(3) when the alternative care client's income less recurring and predictable medical 
206.27 	expenses is equal to or greater than 150 percent but less than 200 percent of the federal 
206.28 	poverty guidelines effective on July 1 of the state fiscal year in which the fee is being 
206.29 	computed and assets are less than $10,000, the fee is 15 percent of the cost of alternative 
206.30 	care services;
206.31 	(4) when the alternative care client's income less recurring and predictable medical 
206.32 	expenses is equal to or greater than 200 percent of the federal poverty guidelines effective 
206.33 	on July 1 of the state fiscal year in which the fee is being computed and assets are less than 
206.34 	$10,000, the fee is 30 percent of the cost of alternative care services; and
207.1 	(5) when the alternative care client's assets are equal to or greater than $10,000, the 
207.2 	fee is 30 percent of the cost of alternative care services.
207.3 	For married persons, total assets are defined as the total marital assets less the 
207.4 	estimated community spouse asset allowance, under section 256B.059, if applicable. For 
207.5 	married persons, total income is defined as the client's income less the monthly spousal 
207.6 	allotment, under section 256B.058. 
207.7 	All alternative care services shall be included in the estimated costs for the purpose 
207.8 	of determining the fee.
207.9 	Fees are due and payable each month alternative care services are received unless the 
207.10 	actual cost of the services is less than the fee, in which case the fee is the lesser amount.
207.11 	(b) The fee shall be waived by the commissioner when:
207.12 	(1) a person who is residing in a nursing facility is receiving case management only;
207.13 	(2) a married couple is requesting an asset assessment under the spousal 
207.14 	impoverishment provisions;
207.15 	(3) a person is found eligible for alternative care, but is not yet receiving alternative 
207.16 	care services including case management services; or
207.17 	(4) a person has chosen to participate in a consumer-directed service plan for which 
207.18 	the cost is no greater than the total cost of the person's alternative care service plan less 
207.19 	the monthly fee amount that would otherwise be assessed.
207.20 	(c) The county agency must record in the state's receivable system the client's 
207.21 	assessed fee amount or the reason the fee has been waived. The commissioner will bill 
207.22 	and collect the fee from the client. Money collected must be deposited in the general fund 
207.23 	and is appropriated to the commissioner for the alternative care program. The client must 
207.24 	supply the county lead agency with the client's Social Security number at the time of 
207.25 	application. The county lead agency shall supply the commissioner with the client's Social 
207.26 	Security number and other information the commissioner requires to collect the fee from 
207.27 	the client. The commissioner shall collect unpaid fees using the Revenue Recapture Act in 
207.28 	chapter 270A and other methods available to the commissioner. The commissioner may 
207.29 	require counties lead agencies to inform clients of the collection procedures that may be 
207.30 	used by the state if a fee is not paid. This paragraph does not apply to alternative care 
207.31 	pilot projects authorized in Laws 1993, First Special Session chapter 1, article 5, section 
207.32 	133, if a county operating under the pilot project reports the following dollar amounts 
207.33 	to the commissioner quarterly:
207.34 	(1) total fees billed to clients;
207.35 	(2) total collections of fees billed; and
207.36 	(3) balance of fees owed by clients.
208.1 	If a county lead agency does not adhere to these reporting requirements, the commissioner 
208.2 	may terminate the billing, collecting, and remitting portions of the pilot project and require 
208.3 	the county lead agency involved to operate under the procedures set forth in this paragraph.

208.4 	Sec. 37. Minnesota Statutes 2006, section 256B.0913, subdivision 13, is amended to 
208.5 	read:
208.6 		Subd. 13.County Lead agency biennial plan. The county lead agency biennial 
208.7 	plan for long-term care consultation services under section 256B.0911, the alternative 
208.8 	care program under this section, and waivers for the elderly under section 256B.0915, 
208.9 	shall be submitted by the lead agency as the home and community-based services quality 
208.10 	assurance plan on a form provided by the commissioner.

208.11 	Sec. 38. Minnesota Statutes 2006, section 256B.0913, subdivision 14, is amended to 
208.12 	read:
208.13 		Subd. 14.Provider requirements, payment, and rate adjustments. (a) Unless 
208.14 	otherwise specified in statute, providers must be enrolled as Minnesota health care 
208.15 	program providers and abide by the requirements for provider participation according to 
208.16 	Minnesota Rules, part 9505.0195.
208.17 	(b) Payment for provided alternative care services as approved by the client's 
208.18 	case manager shall occur through the invoice processing procedures of the department's 
208.19 	Medicaid Management Information System (MMIS). To receive payment, the county lead 
208.20 	agency or vendor must submit invoices within 12 months following the date of service. 
208.21 	The county lead agency and its vendors under contract shall not be reimbursed for services 
208.22 	which exceed the county allocation.
208.23 	(c) The county lead agency shall negotiate individual rates with vendors and may 
208.24 	authorize service payment for actual costs up to the county's current approved rate. 
208.25 	Notwithstanding any other rule or statutory provision to the contrary, the commissioner 
208.26 	shall not be authorized to increase rates by an annual inflation factor, unless so authorized 
208.27 	by the legislature. To improve access to community services and eliminate payment 
208.28 	disparities between the alternative care program and the elderly waiver program, the 
208.29 	commissioner shall establish statewide maximum service rate limits and eliminate 
208.30 	county-specific service rate limits.
208.31 	(1) Effective July 1, 2001, for service rate limits, except those in subdivision 5, 
208.32 	paragraphs (d) and (i), the rate limit for each service shall be the greater of the alternative 
208.33 	care statewide maximum rate or the elderly waiver statewide maximum rate.
209.1 	(2) Counties Lead agencies may negotiate individual service rates with vendors for 
209.2 	actual costs up to the statewide maximum service rate limit.

209.3 	Sec. 39. Minnesota Statutes 2006, section 256B.0919, subdivision 3, is amended to 
209.4 	read:
209.5 		Subd. 3.County certification of persons providing adult foster care to related 
209.6 	persons. A person exempt from licensure under section 245A.03, subdivision 2, who 
209.7 	provides adult foster care to a related individual age 65 and older, and who meets the 
209.8 	requirements in Minnesota Rules, parts 9555.5105 to 9555.6265, may be certified by the 
209.9 	county to provide adult foster care. A person certified by the county to provide adult foster 
209.10 	care may be reimbursed for services provided and eligible for funding under sections 
209.11 	256B.0913 and section256B.0915, if the relative would suffer a financial hardship as 
209.12 	a result of providing care. For purposes of this subdivision, financial hardship refers 
209.13 	to a situation in which a relative incurs a substantial reduction in income as a result of 
209.14 	resigning from a full-time job or taking a leave of absence without pay from a full-time 
209.15 	job to care for the client. 

209.16 	Sec. 40. Minnesota Statutes 2006, section 256B.27, subdivision 2a, is amended to read:
209.17 		Subd. 2a.On-siteCost and statistical data audits. Each year The commissioner 
209.18 	shall provide for the on-sitean audit of the cost reportsand statistical data of nursing homes
209.19 	facilities participating as vendors of medical assistance. The commissioner shall select for 
209.20 	audit at least 15 percent of thesethe nursing homesfacilities' data reported at random or 
209.21 	using factors including, but not limited to: data reported to the public as criteria for rating 
209.22 	nursing facilities; data used to set limits for other medical assistance programs or vendors 
209.23 	of services to nursing facilities; change in ownership; frequent changes in administration 
209.24 	in excess of normal turnover rates; complaints to the commissioner of health about care, 
209.25 	safety, or rights; where previous inspections or reinspections under section 144A.10 have 
209.26 	resulted in correction orders related to care, safety, or rights; or where persons involved in 
209.27 	ownership or administration of the facility have been indicted for alleged criminal activity. 
209.28 	The commissioner shall meet the 15 percent requirement by either conducting an 
209.29 	audit focused on an individual nursing facility, a group of facilities, or targeting specific 
209.30 	data categories in multiple nursing facilities. These audits may be conducted on site 
209.31 	at the nursing facility, at office space used by a nursing facility or a nursing facility's 
209.32 	parent organization, or at the commissioner's office. Data being audited may be collected 
209.33 	electronically, in person, or by any other means the commissioner finds acceptable.

210.1 	Sec. 41. Minnesota Statutes 2006, section 256B.431, subdivision 1, is amended to read:
210.2 		Subdivision 1.In general. The commissioner shall determine prospective 
210.3 	payment rates for resident care costs. For rates established on or after July 1, 1985, the 
210.4 	commissioner shall develop procedures for determining operating cost payment rates that 
210.5 	take into account the mix of resident needs, geographic location, and other factors as 
210.6 	determined by the commissioner. The commissioner shall consider whether the fact that a 
210.7 	facility is attached to a hospital or has an average length of stay of 180 days or less should 
210.8 	be taken into account in determining rates. The commissioner shall consider the use of the 
210.9 	standard metropolitan statistical areas when developing groups by geographic location. 
210.10 	The commissioner shall provide notice to each nursing facility on or before May 1 August 
210.11 	15 of the rates effective for the following rate year except that if legislation is pending on 
210.12 	May 1 August 15 that may affect rates for nursing facilities, the commissioner shall set the 
210.13 	rates after the legislation is enacted and provide notice to each facility as soon as possible.
210.14 	Compensation for top management personnel shall continue to be categorized as a 
210.15 	general and administrative cost and is subject to any limits imposed on that cost category.

210.16 	Sec. 42. Minnesota Statutes 2006, section 256B.431, subdivision 3f, is amended to 
210.17 	read:
210.18 		Subd. 3f.Property costs after July 1, 1988. (a) Investment per bed limit. For the 
210.19 	rate year beginning July 1, 1988, the replacement-cost-new per bed limit must be $32,571 
210.20 	per licensed bed in multiple bedrooms and $48,857 per licensed bed in a single bedroom. 
210.21 	For the rate year beginning July 1, 1989, the replacement-cost-new per bed limit for a 
210.22 	single bedroom must be $49,907 adjusted according to Minnesota Rules, part 9549.0060, 
210.23 	subpart 4, item A, subitem (1). Beginning January 1, 1990, the replacement-cost-new per 
210.24 	bed limits must be adjusted annually as specified in Minnesota Rules, part 9549.0060, 
210.25 	subpart 4, item A, subitem (1). Beginning January 1, 1991, the replacement-cost-new per 
210.26 	bed limits will be adjusted annually as specified in Minnesota Rules, part 9549.0060, 
210.27 	subpart 4, item A, subitem (1), except that the index utilized will be the Bureau of the 
210.28 	Census: Composite fixed-weighted price index as published in the C30 Report, Value 
210.29 	of New Construction Put in Place Economic Analysis: Price Indexes for Private Fixed 
210.30 	Investments in Structures; Special Care. 
210.31 	(b)  Rental factor. For the rate year beginning July 1, 1988, the commissioner shall 
210.32 	increase the rental factor as established in Minnesota Rules, part 9549.0060, subpart 8, 
210.33 	item A, by 6.2 percent rounded to the nearest 100th percent for the purpose of reimbursing 
210.34 	nursing facilities for soft costs and entrepreneurial profits not included in the cost valuation 
210.35 	services used by the state's contracted appraisers. For rate years beginning on or after July 
211.1 	1, 1989, the rental factor is the amount determined under this paragraph for the rate year 
211.2 	beginning July 1, 1988. 
211.3 	(c)  Occupancy factor. For rate years beginning on or after July 1, 1988, in order 
211.4 	to determine property-related payment rates under Minnesota Rules, part 9549.0060, 
211.5 	for all nursing facilities except those whose average length of stay in a skilled level of 
211.6 	care within a nursing facility is 180 days or less, the commissioner shall use 95 percent 
211.7 	of capacity days. For a nursing facility whose average length of stay in a skilled level of 
211.8 	care within a nursing facility is 180 days or less, the commissioner shall use the greater of 
211.9 	resident days or 80 percent of capacity days but in no event shall the divisor exceed 95 
211.10 	percent of capacity days. 
211.11 	(d)  Equipment allowance. For rate years beginning on July 1, 1988, and July 1, 
211.12 	1989, the commissioner shall add ten cents per resident per day to each nursing facility's 
211.13 	property-related payment rate. The ten-cent property-related payment rate increase is not 
211.14 	cumulative from rate year to rate year. For the rate year beginning July 1, 1990, the 
211.15 	commissioner shall increase each nursing facility's equipment allowance as established 
211.16 	in Minnesota Rules, part 9549.0060, subpart 10, by ten cents per resident per day. For 
211.17 	rate years beginning on or after July 1, 1991, the adjusted equipment allowance must be 
211.18 	adjusted annually for inflation as in Minnesota Rules, part 9549.0060, subpart 10, item E. 
211.19 	For the rate period beginning October 1, 1992, the equipment allowance for each nursing 
211.20 	facility shall be increased by 28 percent. For rate years beginning after June 30, 1993, the 
211.21 	allowance must be adjusted annually for inflation. 
211.22 	(e)  Post chapter 199 related-organization debts and interest expense. For rate 
211.23 	years beginning on or after July 1, 1990, Minnesota Rules, part 9549.0060, subpart 5, item 
211.24 	E, shall not apply to outstanding related organization debt incurred prior to May 23, 1983, 
211.25 	provided that the debt was an allowable debt under Minnesota Rules, parts 9510.0010 
211.26 	to 9510.0480, the debt is subject to repayment through annual principal payments, and 
211.27 	the nursing facility demonstrates to the commissioner's satisfaction that the interest rate 
211.28 	on the debt was less than market interest rates for similar arm's-length transactions at 
211.29 	the time the debt was incurred. If the debt was incurred due to a sale between family 
211.30 	members, the nursing facility must also demonstrate that the seller no longer participates 
211.31 	in the management or operation of the nursing facility. Debts meeting the conditions of 
211.32 	this paragraph are subject to all other provisions of Minnesota Rules, parts 9549.0010 
211.33 	to 9549.0080. 
211.34 	(f)  Building capital allowance for nursing facilities with operating leases. For 
211.35 	rate years beginning on or after July 1, 1990, a nursing facility with operating lease costs 
211.36 	incurred for the nursing facility's buildings shall receive its building capital allowance 
212.1 	computed in accordance with Minnesota Rules, part 9549.0060, subpart 8. If an operating 
212.2 	lease provides that the lessee's rent is adjusted to recognize improvements made by the 
212.3 	lessor and related debt, the costs for capital improvements and related debt shall be allowed 
212.4 	in the computation of the lessee's building capital allowance, provided that reimbursement 
212.5 	for these costs under an operating lease shall not exceed the rate otherwise paid. 

212.6 	Sec. 43. Minnesota Statutes 2006, section 256B.431, subdivision 17e, is amended to 
212.7 	read:
212.8 		Subd. 17e.Replacement-costs-new per bed limit effective JulyOctober 1, 2001
212.9 	2007. Notwithstanding Minnesota Rules, part 9549.0060, subpart 11, item C, subitem 
212.10 	(2), for a total replacement, as defined in paragraph (f) subdivision 17d, authorized 
212.11 	under section   144A.071 or   144A.073 after July 1, 1999, or any building project that is a 
212.12 	relocation, renovation, upgrading, or conversion completed on or after July 1, 2001, or 
212.13 	any building project eligible for reimbursement under section 256B.434, subdivision 4f, 
212.14 	the replacement-costs-new per bed limit shall be $74,280 per licensed bed in multiple-bed 
212.15 	rooms, $92,850 per licensed bed in semiprivate rooms with a fixed partition separating 
212.16 	the resident beds, and $111,420 per licensed bed in single rooms. Minnesota Rules, part 
212.17 	9549.0060, subpart 11, item C, subitem (2), does not apply. These amounts must be 
212.18 	adjusted annually as specified in subdivision 3f, paragraph (a), beginning January 1, 2000. 

212.19 	Sec. 44. Minnesota Statutes 2006, section 256B.431, subdivision 41, is amended to 
212.20 	read:
212.21 		Subd. 41.Rate increases for October 1, 2005, and October 1, 2006. (a) For the 
212.22 	rate period beginning October 1, 2005, the commissioner shall make available to each 
212.23 	nursing facility reimbursed under this section or section 256B.434 an adjustment equal to 
212.24 	2.2553 percent of the total operating payment rate, and for the rate year beginning October 
212.25 	1, 2006, the commissioner shall make available to each nursing facility reimbursed 
212.26 	under this section or section 256B.434 an adjustment equal to 1.2553 percent of the total 
212.27 	operating payment rate.
212.28 	(b) 75 percent of the money resulting from the rate adjustment under paragraph (a) 
212.29 	must be used to increase wages and benefits and pay associated costs for all employees, 
212.30 	except management fees, the administrator, and central office staff. Except as provided 
212.31 	in paragraph (c), 75 percent of the money received by a facility as a result of the rate 
212.32 	adjustment provided in paragraph (a) must be used only for wage, benefit, and staff 
212.33 	increases implemented on or after the effective date of the rate increase each year, and 
212.34 	must not be used for increases implemented prior to that date.
213.1 	(c) With respect only to the October 1, 2005, rate increase, a nursing facility that 
213.2 	incurred costs for salary and employee benefit increases first provided after July 1, 2003, 
213.3 	may count those costs towards the amount required to be spent on salaries and benefits 
213.4 	under paragraph (b). These costs must be reported to the commissioner in the form and 
213.5 	manner specified by the commissioner.
213.6 	(d) Nursing facilities may apply for the portion of the rate adjustment under 
213.7 	paragraph (a) for employee wages and benefits and associated costs. The application 
213.8 	must be made to the commissioner and contain a plan by which the nursing facility 
213.9 	will distribute the funds according to paragraph (b). For nursing facilities in which the 
213.10 	employees are represented by an exclusive bargaining representative, an agreement 
213.11 	negotiated and agreed to by the employer and the exclusive bargaining representative 
213.12 	constitutes the plan. A negotiated agreement may constitute the plan only if the agreement 
213.13 	is finalized after the date of enactment of all increases for the rate year and signed by both 
213.14 	parties prior to submission to the commissioner. The commissioner shall review the 
213.15 	plan to ensure that the rate adjustments are used as provided in paragraph (b). To be 
213.16 	eligible, a facility must submit its distribution plan by March 31, 2006, and March 31, 
213.17 	2007, respectively. The commissioner may approve distribution plans on or before June 
213.18 	30, 2006, and June 30, 2007, respectively. The commissioner may waive the deadlines in 
213.19 	this paragraph under extraordinary circumstances, either retroactively or prospectively, to 
213.20 	be determined at the sole discretion of the commissioner. If a facility's distribution plan is 
213.21 	effective after the first day of the applicable rate period that the funds are available, the 
213.22 	rate adjustments are effective the same date as the facility's plan.
213.23 	(e) A copy of the approved distribution plan must be made available to all employees 
213.24 	by giving each employee a copy or by posting a copy in an area of the nursing facility 
213.25 	to which all employees have access. If an employee does not receive the wage and 
213.26 	benefit adjustment described in the facility's approved plan and is unable to resolve the 
213.27 	problem with the facility's management or through the employee's union representative, 
213.28 	the employee may contact the commissioner at an address or telephone number provided 
213.29 	by the commissioner and included in the approved plan.

213.30 	EFFECTIVE DATE. This section is effective upon enactment and is retroactive 
213.31 	from October 1, 2005.

213.32 	Sec. 45. Minnesota Statutes 2006, section 256B.49, subdivision 11, is amended to read:
213.33 		Subd. 11.Authority. (a) The commissioner is authorized to apply for home and 
213.34 	community-based service waivers, as authorized under section 1915(c) of the Social 
213.35 	Security Act to serve persons under the age of 65 who are determined to require the level 
214.1 	of care provided in a nursing home and persons who require the level of care provided in a 
214.2 	hospital. The commissioner shall apply for the home and community-based waivers in 
214.3 	order to:
214.4 	(i) promote the support of persons with disabilities in the most integrated settings;
214.5 	(ii) expand the availability of services for persons who are eligible for medical 
214.6 	assistance;
214.7 	(iii) promote cost-effective options to institutional care; and
214.8 	(iv) obtain federal financial participation.
214.9 	(b) The provision of waivered services to medical assistance recipients with 
214.10 	disabilities shall comply with the requirements outlined in the federally approved 
214.11 	applications for home and community-based services and subsequent amendments, 
214.12 	including provision of services according to a service plan designed to meet the needs of 
214.13 	the individual. For purposes of this section, the approved home and community-based 
214.14 	application is considered the necessary federal requirement.
214.15 	(c) The commissioner shall provide interested persons serving on agency advisory 
214.16 	committees and, task forces, the Centers for Independent Living, and others upon who
214.17 	request, with to be on a list to receive, notice of, and an opportunity to comment on, 
214.18 	at least 30 days before any effective dates, (1) any substantive changes to the state's 
214.19 	disability services program manual, or (2) changes or amendments to the federally 
214.20 	approved applications for home and community-based waivers, prior to their submission 
214.21 	to the federal Centers for Medicare and Medicaid Services.
214.22 	(d) The commissioner shall seek approval, as authorized under section 1915(c) of 
214.23 	the Social Security Act, to allow medical assistance eligibility under this section for 
214.24 	children under age 21 without deeming of parental income or assets.
214.25 	(e) The commissioner shall seek approval, as authorized under section 1915(c) of 
214.26 	the Social Act, to allow medical assistance eligibility under this section for individuals 
214.27 	under age 65 without deeming the spouse's income or assets.

214.28 	Sec. 46. Laws 2000, chapter 340, section 19, is amended to read:
214.29 	Sec. 19. ALTERNATIVE CARE PILOT PROJECTS.
 214.30 	(a) Expenditures for housing with services and adult foster care shall be excluded 
214.31 	when determining average monthly expenditures per client for alternative care pilot 
214.32 	projects authorized in Laws 1993, First Special Session chapter 1, article 5, section 133.
214.33 	(b) Alternative care pilot projects shall not expire on June 30, 2001, but shall 
214.34 	continue until June 30, 2005 2007.

215.1 	EFFECTIVE DATE. This section is effective retroactively from June 29, 2005, for 
215.2 	activities related to discontinuing pilot projects under this section.

215.3 	Sec. 47. LICENSURE; SERVICES FOR YOUTH WITH DISABILITIES.
 215.4 	(a) Notwithstanding the requirements of Minnesota Statutes, chapter 245A, upon 
215.5 	the recommendation of a county agency, the commissioner of human services shall 
215.6 	grant a license with any necessary variances to a nonresidential program for youth 
215.7 	that provides services to youth with disabilities under age 21 during nonschool hours 
215.8 	established to ensure health and safety, prevent out-of-home placement, and increase 
215.9 	community inclusion of youth with disabilities. The nonresidential youth program is 
215.10 	subject to the conditions of any variances granted and to consumer rights standards under 
215.11 	Minnesota Statutes, section 245B.04; consumer protection standards under Minnesota 
215.12 	Statutes, section 245B.05; service standards under Minnesota Statutes, section 245B.06; 
215.13 	management standards under Minnesota Statutes, section 245B.07; and fire marshal 
215.14 	inspections under Minnesota Statutes, section 245A.151, until the commissioner develops 
215.15 	other licensure requirements for this type of program.
215.16 	(b) By February 1, 2008, the commissioner shall recommend amendments to 
215.17 	licensure requirements in Minnesota Statutes, chapter 245A, to allow licensure of 
215.18 	appropriate services for school-age youth with disabilities under age 21 who need 
215.19 	supervision and services to develop skills necessary to maintain personal safety and 
215.20 	increase their independence, productivity, and participation in their communities during 
215.21 	nonschool hours. As part of developing the recommendations, the commissioner shall 
215.22 	survey county agencies to determine how the needs of youth with disabilities under age 21 
215.23 	who require supervision and support services are being met and the funding sources used. 
215.24 	The recommendations must be provided to the house and senate chairs of the committees 
215.25 	with jurisdiction over licensing of programs for youth with disabilities.

215.26 	ARTICLE 7
215.27 	CONTINUING CARE

215.28 	Section 1. Minnesota Statutes 2006, section 144A.073, subdivision 4, is amended to 
215.29 	read:
215.30 		Subd. 4.Criteria for review. The following criteria shall be used in a consistent 
215.31 	manner to compare, evaluate, and rank all proposals submitted. Except for the criteria 
215.32 	specified in clause (3), the application of criteria listed under this subdivision shall not 
215.33 	reflect any distinction based on the geographic location of the proposed project:
216.1 	(1) the extent to which the proposal furthers state long-term care goals, including 
216.2 	the goal of enhancing the availability and use of alternative care services and the goal of 
216.3 	reducing the number of long-term care resident rooms with more than two beds;
216.4 	(2) the proposal's long-term effects on state costs including the cost estimate of the 
216.5 	project according to section 144A.071, subdivision 5a; 
216.6 	(3) the extent to which the proposal promotes equitable access to long-term care 
216.7 	services in nursing homes through redistribution of the nursing home bed supply, as 
216.8 	measured by the number of beds relative to the population 85 or older, projected to the 
216.9 	year 2000 by the state demographer, and according to items (i) to (iv):
216.10 	(i) reduce beds in counties where the supply is high, relative to the statewide mean, 
216.11 	and increase beds in counties where the supply is low, relative to the statewide mean;
216.12 	(ii) adjust the bed supply so as to create the greatest benefits in improving the 
216.13 	distribution of beds;
216.14 	(iii) adjust the existing bed supply in counties so that the bed supply in a county 
216.15 	moves toward the statewide mean; and
216.16 	(iv) adjust the existing bed supply so that the distribution of beds as projected for the 
216.17 	year 2020 would be consistent with projected need, based on the methodology outlined in 
216.18 	the Interagency Long-Term Care Committee's nursing home bed distribution study;
216.19 	(4) the extent to which the project improves conditions that affect the health or 
216.20 	safety of residents, such as narrow corridors, narrow door frames, unenclosed fire exits, 
216.21 	and wood frame construction, and similar provisions contained in fire and life safety 
216.22 	codes and licensure and certification rules;
216.23 	(5) the extent to which the project improves conditions that affect the comfort or 
216.24 	quality of life of residents in a facility or the ability of the facility to provide efficient 
216.25 	care, such as a relatively high number of residents in a room; inadequate lighting or 
216.26 	ventilation; poor access to bathing or toilet facilities; a lack of available ancillary space for 
216.27 	dining rooms, day rooms, or rooms used for other activities; problems relating to heating, 
216.28 	cooling, or energy efficiency; inefficient location of nursing stations; narrow corridors; or 
216.29 	other provisions contained in the licensure and certification rules;
216.30 	(6) the extent to which the applicant demonstrates the delivery of quality care, as 
216.31 	defined in state and federal statutes and rules, to residents as evidenced by the two most 
216.32 	recent state agency certification surveys and the applicants' response to those surveys;
216.33 	(7) the extent to which the project removes the need for waivers or variances 
216.34 	previously granted by either the licensing agency, certifying agency, fire marshal, or 
216.35 	local government entity;
217.1 	(8) the extent to which the project increases the number of private or single bed 
217.2 	rooms; and
217.3 	(9) the extent to which the applicant demonstrates the continuing need for nursing 
217.4 	facility care in the community and adjacent communities; and
217.5 	(10) other factors that may be developed in permanent rule by the commissioner of 
217.6 	health that evaluate and assess how the proposed project will further promote or protect 
217.7 	the health, safety, comfort, treatment, or well-being of the facility's residents.

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

217.9 	Sec. 2. Minnesota Statutes 2006, section 252.27, subdivision 2a, is amended to read:
217.10 		Subd. 2a.Contribution amount. (a) The natural or adoptive parents of a minor 
217.11 	child, including a child determined eligible for medical assistance without consideration of 
217.12 	parental income, must contribute to the cost of services used by making monthly payments 
217.13 	on a sliding scale based on income, unless the child is married or has been married, 
217.14 	parental rights have been terminated, or the child's adoption is subsidized according to 
217.15 	section 259.67 or through title IV-E of the Social Security Act. The parental contribution 
217.16 	is a partial or full payment for medical services provided for diagnostic, therapeutic, 
217.17 	curing, treating, mitigating, rehabilitation, maintenance, and personal care services as 
217.18 	defined in United States Code, title 26, section 213, needed by the child with a chronic 
217.19 	illness or disability.
217.20 	(b) For households with adjusted gross income equal to or greater than 100 percent 
217.21 	of federal poverty guidelines, the parental contribution shall be computed by applying the 
217.22 	following schedule of rates to the adjusted gross income of the natural or adoptive parents:
217.23 	(1) if the adjusted gross income is equal to or greater than 100 percent of federal 
217.24 	poverty guidelines and less than 175 percent of federal poverty guidelines, the parental 
217.25 	contribution is $4 per month;
217.26 	(2) if the adjusted gross income is equal to or greater than 175 percent of federal 
217.27 	poverty guidelines and less than or equal to 545 percent of federal poverty guidelines, 
217.28 	the parental contribution shall be determined using a sliding fee scale established by the 
217.29 	commissioner of human services which begins at one percent of adjusted gross income 
217.30 	at 175 percent of federal poverty guidelines and increases to 7.5 percent of adjusted 
217.31 	gross income for those with adjusted gross income up to 545 percent of federal poverty 
217.32 	guidelines;
217.33 	(3) if the adjusted gross income is greater than 545 percent of federal poverty 
217.34 	guidelines and less than 675 percent of federal poverty guidelines, the parental 
217.35 	contribution shall be 7.5 percent of adjusted gross income;
218.1 	(4) if the adjusted gross income is equal to or greater than 675 percent of federal 
218.2 	poverty guidelines and less than 975 percent of federal poverty guidelines, the parental 
218.3 	contribution shall be determined using a sliding fee scale established by the commissioner 
218.4 	of human services which begins at 7.5 percent of adjusted gross income at 675 percent of 
218.5 	federal poverty guidelines and increases to ten percent of adjusted gross income for those 
218.6 	with adjusted gross income up to 975 percent of federal poverty guidelines; and
218.7 	(5) if the adjusted gross income is equal to or greater than 975 percent of federal 
218.8 	poverty guidelines, the parental contribution shall be 12.5 percent of adjusted gross 
218.9 	income.
218.10 	If the child lives with the parent, the annual adjusted gross income is reduced by 
218.11 	$2,400 prior to calculating the parental contribution. If the child resides in an institution 
218.12 	specified in section 256B.35, the parent is responsible for the personal needs allowance 
218.13 	specified under that section in addition to the parental contribution determined under this 
218.14 	section. The parental contribution is reduced by any amount required to be paid directly to 
218.15 	the child pursuant to a court order, but only if actually paid.
218.16 	(c) The household size to be used in determining the amount of contribution under 
218.17 	paragraph (b) includes natural and adoptive parents and their dependents, including the 
218.18 	child receiving services. Adjustments in the contribution amount due to annual changes 
218.19 	in the federal poverty guidelines shall be implemented on the first day of July following 
218.20 	publication of the changes.
218.21 	(d) For purposes of paragraph (b), "income" means the adjusted gross income of the 
218.22 	natural or adoptive parents determined according to the previous year's federal tax form, 
218.23 	except, effective retroactive to July 1, 2003, taxable capital gains to the extent the funds 
218.24 	have been used to purchase a home shall not be counted as income.
218.25 	(e) The contribution shall be explained in writing to the parents at the time eligibility 
218.26 	for services is being determined. The contribution shall be made on a monthly basis 
218.27 	effective with the first month in which the child receives services. Annually upon 
218.28 	redetermination or at termination of eligibility, if the contribution exceeded the cost of 
218.29 	services provided, the local agency or the state shall reimburse that excess amount to 
218.30 	the parents, either by direct reimbursement if the parent is no longer required to pay 
218.31 	a contribution, or by a reduction in or waiver of parental fees until the excess amount 
218.32 	is exhausted.
218.33 	(f) The monthly contribution amount must be reviewed at least every 12 months; 
218.34 	when there is a change in household size; and when there is a loss of or gain in income 
218.35 	from one month to another in excess of ten percent. The local agency shall mail a written 
218.36 	notice 30 days in advance of the effective date of a change in the contribution amount. 
219.1 	A decrease in the contribution amount is effective in the month that the parent verifies a 
219.2 	reduction in income or change in household size.
219.3 	(g) Parents of a minor child who do not live with each other shall each pay the 
219.4 	contribution required under paragraph (a). An amount equal to the annual court-ordered 
219.5 	child support payment actually paid on behalf of the child receiving services shall be 
219.6 	deducted from the adjusted gross income of the parent making the payment prior to 
219.7 	calculating the parental contribution under paragraph (b).
219.8 	(h) The contribution under paragraph (b) shall be increased by an additional five 
219.9 	percent if the local agency determines that insurance coverage is available but not 
219.10 	obtained for the child. For purposes of this section, "available" means the insurance is a 
219.11 	benefit of employment for a family member at an annual cost of no more than five percent 
219.12 	of the family's annual income. For purposes of this section, "insurance" means health 
219.13 	and accident insurance coverage, enrollment in a nonprofit health service plan, health 
219.14 	maintenance organization, self-insured plan, or preferred provider organization.
219.15 	Parents who have more than one child receiving services shall not be required 
219.16 	to pay more than the amount for the child with the highest expenditures. There shall 
219.17 	be no resource contribution from the parents. The parent shall not be required to pay 
219.18 	a contribution in excess of the cost of the services provided to the child, not counting 
219.19 	payments made to school districts for education-related services. Notice of an increase in 
219.20 	fee payment must be given at least 30 days before the increased fee is due.
219.21 	(i) The contribution under paragraph (b) shall be reduced by $300 per fiscal year if, 
219.22 	in the 12 months prior to July 1:
219.23 	(1) the parent applied for insurance for the child;
219.24 	(2) the insurer denied insurance;
219.25 	(3) the parents submitted a complaint or appeal, in writing to the insurer, submitted 
219.26 	a complaint or appeal, in writing, to the commissioner of health or the commissioner of 
219.27 	commerce, or litigated the complaint or appeal; and
219.28 	(4) as a result of the dispute, the insurer reversed its decision and granted insurance.
219.29 	For purposes of this section, "insurance" has the meaning given in paragraph (h).
219.30 	A parent who has requested a reduction in the contribution amount under this 
219.31 	paragraph shall submit proof in the form and manner prescribed by the commissioner or 
219.32 	county agency, including, but not limited to, the insurer's denial of insurance, the written 
219.33 	letter or complaint of the parents, court documents, and the written response of the insurer 
219.34 	approving insurance. The determinations of the commissioner or county agency under this 
219.35 	paragraph are not rules subject to chapter 14.

220.1 	Sec. 3. [252.295] LICENSING EXCEPTION.
220.2 	(a) Notwithstanding section 252.294, the commissioner may license two six-bed, 
220.3 	level B intermediate care facilities for persons with developmental disabilities (ICF's/MR) 
220.4 	to replace a 15-bed level A facility in Minneapolis that is not accessible to persons with 
220.5 	disabilities. The new facilities must be accessible to persons with disabilities and must 
220.6 	be located on a different site or sites in Hennepin County. Notwithstanding section 
220.7 	256B.5012, the payment rate at the new facilities is $200.47 plus any rate adjustments for 
220.8 	ICF's/MR effective on or after July 1, 2007.
220.9 	(b) Notwithstanding section 252.294, the commissioner may license one six-bed 
220.10 	level B intermediate care facility for persons with developmental disabilities to replace 
220.11 	a downsized 21-bed facility attached to a day training and habilitation program in 
220.12 	Chisholm. Notwithstanding section 256B.5012, the facility must serve persons who 
220.13 	require substantial nursing care and are able to leave the facility to receive day training 
220.14 	and habilitation services. The payment rate at this facility is $274.50.
220.15 	(c) Notwithstanding section 256B.5012, the payment rate of a six-bed level B 
220.16 	intermediate care facility for persons with developmental disabilities in Hibbing, with a 
220.17 	per diem rate of $164.13 as of March 1, 2007, for persons who require substantial nursing 
220.18 	care and are able to leave the facility to receive day training and habilitation services shall 
220.19 	be increased to $250.84.
220.20 	(d) The payment rates in paragraphs (b) and (c) are effective October 1, 2009.

220.21 	Sec. 4. Minnesota Statutes 2006, section 256.01, is amended by adding a subdivision 
220.22 	to read:
220.23 		Subd. 24.Disability linkage line. The commissioner shall establish the disability 
220.24 	linkage line, a statewide consumer information, referral, and assistance system for people 
220.25 	with disabilities and chronic illnesses that: 
220.26 	(1) provides information about state and federal eligibility requirements, benefits, 
220.27 	and service options; 
220.28 	(2) makes referrals to appropriate support entities; 
220.29 	(3) delivers information and assistance based on national and state standards; 
220.30 	(4) assists people to make well-informed decisions; and 
220.31 	(5) supports the timely resolution of service access and benefit issues.

220.32 	Sec. 5. Minnesota Statutes 2006, section 256.975, subdivision 7, is amended to read:
220.33 		Subd. 7.Consumer information and assistance; senior linkage. (a) The 
220.34 	Minnesota Board on Aging shall operate a statewide information and assistance service 
221.1 	to aid older Minnesotans and their families in making informed choices about long-term 
221.2 	care options and health care benefits. Language services to persons with limited English 
221.3 	language skills may be made available. The service, known as Senior LinkAge Line, must 
221.4 	be available during business hours through a statewide toll-free number and must also 
221.5 	be available through the Internet.
221.6 	(b) The service must assist older adults, caregivers, and providers in accessing 
221.7 	information about choices in long-term care services that are purchased through private 
221.8 	providers or available through public options. The service must:
221.9 	(1) develop a comprehensive database that includes detailed listings in both 
221.10 	consumer- and provider-oriented formats;
221.11 	(2) make the database accessible on the Internet and through other telecommunication 
221.12 	and media-related tools;
221.13 	(3) link callers to interactive long-term care screening tools and make these tools 
221.14 	available through the Internet by integrating the tools with the database;
221.15 	(4) develop community education materials with a focus on planning for long-term 
221.16 	care and evaluating independent living, housing, and service options;
221.17 	(5) conduct an outreach campaign to assist older adults and their caregivers in 
221.18 	finding information on the Internet and through other means of communication;
221.19 	(6) implement a messaging system for overflow callers and respond to these callers 
221.20 	by the next business day;
221.21 	(7) link callers with county human services and other providers to receive more 
221.22 	in-depth assistance and consultation related to long-term care options; and
221.23 	(8) link callers with quality profiles for nursing facilities and other providers 
221.24 	developed by the commissioner of health.; and
221.25 	(9) incorporate information about housing with services and consumer rights 
221.26 	within the MinnesotaHelp.info network long-term care database to facilitate consumer 
221.27 	comparison of services and costs among housing with services establishments and with 
221.28 	other in-home services and to support financial self-sufficiency as long as possible. 
221.29 	Housing with services establishments and their arranged home care providers shall provide 
221.30 	information to the commissioner of human services that is consistent with information 
221.31 	required by the commissioner of health under section 144G.06, the Uniform Consumer 
221.32 	Information Guide. The commissioner of human services shall provide the data to the 
221.33 	Minnesota Board on Aging for inclusion in the MinnesotaHelp.info network long-term 
221.34 	care database.
221.35 	(c) The Minnesota Board on Aging shall conduct an evaluation of the effectiveness 
221.36 	of the statewide information and assistance, and submit this evaluation to the legislature 
222.1 	by December 1, 2002. The evaluation must include an analysis of funding adequacy, gaps 
222.2 	in service delivery, continuity in information between the service and identified linkages, 
222.3 	and potential use of private funding to enhance the service.

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

222.5 	Sec. 6. Minnesota Statutes 2006, section 256B.0625, subdivision 18a, is amended to 
222.6 	read:
222.7 		Subd. 18a.Access to medical services. (a) Medical assistance reimbursement for 
222.8 	meals for persons traveling to receive medical care may not exceed $5.50 for breakfast, 
222.9 	$6.50 for lunch, or $8 for dinner.
222.10 	(b) Medical assistance reimbursement for lodging for persons traveling to receive 
222.11 	medical care may not exceed $50 per day unless prior authorized by the local agency.
222.12 	(c) Medical assistance direct mileage reimbursement to the eligible person or the 
222.13 	eligible person's driver may not exceed 20 cents per mile.
222.14 	(d) Regardless of the number of employees that an enrolled health care provider 
222.15 	may have, medical assistance covers sign and oral language interpreter services when 
222.16 	provided by an enrolled health care provider during the course of providing a direct, 
222.17 	person-to-person covered health care service to an enrolled recipient with limited English 
222.18 	proficiency or who has a hearing loss and uses interpreting services.

222.19 	Sec. 7. Minnesota Statutes 2006, section 256B.0625, is amended by adding a 
222.20 	subdivision to read:
222.21 		Subd. 49.Self-directed supports option. Upon federal approval, medical 
222.22 	assistance covers the self-directed supports option as defined under section 256B.0657 and 
222.23 	section 6087 of the Federal Deficit Reduction Act of 2005, Public Law 109-171.

222.24 	EFFECTIVE DATE. This section is effective upon federal approval of the state 
222.25 	Medicaid plan amendment. The commissioner of human services shall inform the Office 
222.26 	of the Revisor of Statutes when approval is obtained.

222.27 	Sec. 8. Minnesota Statutes 2006, section 256B.0651, subdivision 7, is amended to read:
222.28 		Subd. 7.Prior authorization; time limits. The commissioner or the commissioner's 
222.29 	designee shall determine the time period for which a prior authorization shall be effective 
222.30 	and, if flexible use has been requested, whether to allow the flexible use option. If 
222.31 	the recipient continues to require home care services beyond the duration of the prior 
222.32 	authorization, the home care provider must request a new prior authorization. A personal 
223.1 	care provider agency must request a new personal care assistant services assessment, or 
223.2 	service update if allowed, at least 60 days prior to the end of the current prior authorization 
223.3 	time period. The request for the assessment must be made on a form approved by the 
223.4 	commissioner. Under no circumstances, other than the exceptions in subdivision 4, shall a 
223.5 	prior authorization be valid prior to the date the commissioner receives the request or for 
223.6 	more than 12 months. A recipient who appeals a reduction in previously authorized home 
223.7 	care services may continue previously authorized services, other than temporary services 
223.8 	under subdivision 8, pending an appeal under section 256.045. The commissioner must 
223.9 	provide a detailed explanation of why the authorized services are reduced in amount from 
223.10 	those requested by the home care provider.

223.11 	Sec. 9. Minnesota Statutes 2006, section 256B.0655, subdivision 1b, is amended to 
223.12 	read:
223.13 		Subd. 1b.Assessment. "Assessment" means a review and evaluation of a recipient's 
223.14 	need for home care services conducted in person. Assessments for personal care assistant 
223.15 	services shall be conducted by the county public health nurse or a certified public 
223.16 	health nurse under contract with the county. A face-to-face assessment must include: 
223.17 	documentation of health status, determination of need, evaluation of service effectiveness, 
223.18 	identification of appropriate services, service plan development or modification, 
223.19 	coordination of services, referrals and follow-up to appropriate payers and community 
223.20 	resources, completion of required reports, recommendation of service authorization, and 
223.21 	consumer education. Once the need for personal care assistant services is determined 
223.22 	under this section or sections 256B.0651, 256B.0653, 256B.0654, and 256B.0656, the 
223.23 	county public health nurse or certified public health nurse under contract with the county 
223.24 	is responsible for communicating this recommendation to the commissioner and the 
223.25 	recipient. A face-to-face assessment for personal care assistant services is conducted 
223.26 	on those recipients who have never had a county public health nurse assessment. A 
223.27 	face-to-face assessment must occur at least annually or when there is a significant change 
223.28 	in the recipient's condition or when there is a change in the need for personal care assistant 
223.29 	services. A service update may substitute for the annual face-to-face assessment when 
223.30 	there is not a significant change in recipient condition or a change in the need for personal 
223.31 	care assistant service. A service update may be completed by telephone, used when there 
223.32 	is no need for an increase in personal care assistant services, and used for two consecutive 
223.33 	assessments if followed by a face-to-face assessment. A service update must be completed 
223.34 	on a form approved by the commissioner. A service update or review for temporary 
223.35 	increase includes a review of initial baseline data, evaluation of service effectiveness, 
224.1 	redetermination of service need, modification of service plan and appropriate referrals, 
224.2 	update of initial forms, obtaining service authorization, and on going consumer education. 
224.3 	Assessments must be completed on forms provided by the commissioner within 30 days 
224.4 	of a request for home care services by a recipient or responsible party or personal care 
224.5 	provider agency.

224.6 	Sec. 10. Minnesota Statutes 2006, section 256B.0655, subdivision 3, is amended to 
224.7 	read:
224.8 		Subd. 3.Assessment and service plan. Assessments under subdivision 1b 
224.9 	and sections 256B.0651, subdivision 1, paragraph (b), and 256B.0654, subdivision 1, 
224.10 	paragraph (a), shall be conducted initially, and at least annually thereafter, in person 
224.11 	with the recipient and result in a completed service plan using forms specified by 
224.12 	the commissioner. A personal care provider agency must use a form approved by 
224.13 	the commissioner to request a county public health nurse to conduct a personal care 
224.14 	assistant services assessment. When requesting a reassessment, the personal care provider 
224.15 	agency must notify the county and the recipient at least 60 days prior to the end of the 
224.16 	current prior authorization for personal care assistant services. The recipient notice 
224.17 	shall include information on the recipient's appeal rights. Within 30 days of recipient 
224.18 	or responsible party or personal care assistant provider agency request for home care 
224.19 	services, the assessment, the service plan, and other information necessary to determine 
224.20 	medical necessity such as diagnostic or testing information, social or medical histories, 
224.21 	and hospital or facility discharge summaries shall be submitted to the commissioner. 
224.22 	Notwithstanding the provisions of subdivision 8, the commissioner shall maximize 
224.23 	federal financial participation to pay for public health nurse assessments for personal care 
224.24 	services. For personal care assistant services:
224.25 	(1) The amount and type of service authorized based upon the assessment and 
224.26 	service plan will follow the recipient if the recipient chooses to change providers.
224.27 	(2) If the recipient's need changes, the recipient's provider may assess the need for 
224.28 	a change in service authorization and request the change from the county public health 
224.29 	nurse. The request must be made on a form approved by the commissioner. Within 30 
224.30 	days of the request, the public health nurse will determine whether to request the change 
224.31 	in services based upon the provider assessment, or conduct a home visit to assess the need 
224.32 	and determine whether the change is appropriate. If the change in service need is due to 
224.33 	a change in medical condition, a new physician's statement of need required by section 
224.34 	256B.0625, subdivision 19c, must be obtained.
225.1 	(3) To continue to receive personal care assistant services after the first year, 
225.2 	the recipient or the responsible party, in conjunction with the public health nurse, 
225.3 	may complete a service update on forms developed by the commissioner according to 
225.4 	criteria and procedures in subdivisions 1a to 1i and sections 256B.0651, subdivision 1; 
225.5 	256B.0653, subdivision 1; and 256B.0654, subdivision 1.

225.6 	Sec. 11. Minnesota Statutes 2006, section 256B.0655, subdivision 8, is amended to 
225.7 	read:
225.8 		Subd. 8.Public health nurse assessment rate. (a) The reimbursement rates for 
225.9 	public health nurse visits that relate to the provision of personal care services under this 
225.10 	section and section 256B.0625, subdivision 19a, are:
225.11 	(i) $210.50 for a face-to-face assessment visit;
225.12 	(ii) $105.25 for each service update; and
225.13 	(iii) $105.25 for each request for a temporary service increase.
225.14 	(b) The rates specified in paragraph (a) must be adjusted to reflect provider rate 
225.15 	increases for personal care assistant services that are approved by the legislature for the 
225.16 	fiscal year ending June 30, 2000, and subsequent fiscal years. Any requirements applied 
225.17 	by the legislature to provider rate increases for personal care assistant services also apply 
225.18 	to adjustments under this paragraph.
225.19 	(c) Effective July 1, 2008, the payment rate for an assessment under this section and 
225.20 	section 256B.0651 shall be reduced by 25 percent when the assessment is not completed 
225.21 	on time or the service agreement documentation is not submitted in time to continue 
225.22 	services. The commissioner shall recoup these amounts on a retroactive basis.

225.23 	Sec. 12. [256B.0657] SELF-DIRECTED SUPPORTS OPTION.
225.24 		Subdivision 1.Definition. "Self-directed supports option" means personal 
225.25 	assistance, supports, items, and related services purchased under an approved budget 
225.26 	plan and budget by a recipient.
225.27 		Subd. 2.Eligibility. (a) The self-directed supports option is available to a person 
225.28 	who:
225.29 	(1) is a recipient of medical assistance as determined under sections 256B.055, 
225.30 	256B.056, and 256B.057, subdivision 9;
225.31 	(2) is eligible for personal care assistant services under section 256B.0655;
225.32 	(3) lives in the person's own apartment or home, which is not owned, operated, or 
225.33 	controlled by a provider of services not related by blood or marriage;
226.1 	(4) has the ability to hire, fire, supervise, establish staff compensation for, and 
226.2 	manage the individuals providing services, and to choose and obtain items, related 
226.3 	services, and supports as described in the participant's plan. If the recipient is not able to 
226.4 	carry out these functions but has a legal guardian or parent to carry them out, the guardian 
226.5 	or parent may fulfill these functions on behalf of the recipient; and
226.6 	(5) has not been excluded or disenrolled by the commissioner.
226.7 	(b) The commissioner may disenroll or exclude recipients, including guardians and 
226.8 	parents, under the following circumstances:
226.9 	(1) recipients who have been restricted by the Primary Care Utilization Review 
226.10 	Committee may be excluded for a specified time period; 
226.11 	(2) recipients who exit the self-directed supports option during the recipient's 
226.12 	service plan year shall not access the self-directed supports option for the remainder of 
226.13 	that service plan year; and
226.14 	(3) when the department determines that the recipient cannot manage recipient 
226.15 	responsibilities under the program.
226.16 		Subd. 3.Eligibility for other services. Selection of the self-directed supports 
226.17 	option by a recipient shall not restrict access to other medically necessary care and 
226.18 	services furnished under the state plan medical assistance benefit, including home care 
226.19 	targeted case management, except that a person receiving home and community-based 
226.20 	waiver services, a family support grant or a consumer support grant is not eligible for 
226.21 	funding under the self-directed supports option.
226.22 		Subd. 4.Assessment requirements. (a) The self-directed supports option 
226.23 	assessment must meet the following requirements:
226.24 	(1) it shall be conducted by the county public health nurse or a certified public 
226.25 	health nurse under contract with the county;
226.26 	(2) it shall be conducted face-to-face in the recipient's home initially, and at least 
226.27 	annually thereafter; when there is a significant change in the recipient's condition; and 
226.28 	when there is a change in the need for personal care assistant services. A recipient who is 
226.29 	residing in a facility may be assessed for the self-directed support option for the purpose 
226.30 	of returning to the community using this option; and 
226.31 	(3) it shall be completed using the format established by the commissioner.
226.32 	(b) The results of the assessment and recommendations shall be communicated to 
226.33 	the commissioner and the recipient by the county public health nurse or certified public 
226.34 	health nurse under contract with the county.
226.35 		Subd. 5.Self-directed supports option plan requirements. (a) The plan for the 
226.36 	self-directed supports option must meet the following requirements:
227.1 	(1) the plan must be completed using a person-centered process that:
227.2 	(i) builds upon the recipient's capacity to engage in activities that promote 
227.3 	community life;
227.4 	(ii) respects the recipient's preferences, choices, and abilities;
227.5 	(iii) involves families, friends, and professionals in the planning or delivery of 
227.6 	services or supports as desired or required by the recipient; and 
227.7 	(iv) addresses the need for personal care assistant services identified in the recipient's 
227.8 	self-directed supports option assessment;
227.9 	(2) the plan shall be developed by the recipient or by the guardian of an adult 
227.10 	recipient or by a parent or guardian of a minor child, with the assistance of an enrolled 
227.11 	medical assistance home care targeted case manager provider who meets the requirements 
227.12 	established for using a person-centered planning process and shall be reviewed at least 
227.13 	annually upon reassessment or when there is a significant change in the recipient's 
227.14 	condition; and 
227.15 	(3) the plan must include the total budget amount available divided into monthly 
227.16 	amounts that cover the number of months of personal care assistant services authorization 
227.17 	included in the budget. The amount used each month may vary, but additional funds shall 
227.18 	not be provided above the annual personal care assistant services authorized amount 
227.19 	unless a change in condition is documented.
227.20 	(b) The commissioner shall:
227.21 	(1) establish the format and criteria for the plan as well as the requirements for 
227.22 	providers who assist with plan development;
227.23 	(2) review the assessment and plan and, within 30 days after receiving the 
227.24 	assessment and plan, make a decision on approval of the plan;
227.25 	(3) notify the recipient, parent, or guardian of approval or denial of the plan and 
227.26 	provide notice of the right to appeal under section 256.045; and 
227.27 	(4) provide a copy of the plan to the fiscal support entity selected by the recipient.
227.28 		Subd. 6.Services covered. (a) Services covered under the self-directed supports 
227.29 	option include:
227.30 	(1) personal care assistant services under section 256B.0655; and 
227.31 	(2) items, related services, and supports, including assistive technology, that increase 
227.32 	independence or substitute for human assistance to the extent expenditures would 
227.33 	otherwise be used for human assistance.
227.34 	(b) Items, supports, and related services purchased under this option shall not be 
227.35 	considered home care services for the purposes of section 144A.43.
228.1 		Subd. 7.Noncovered services. Services or supports that are not eligible for 
228.2 	payment under the self-directed supports option include:
228.3 	(1) services, goods, or supports that do not benefit the recipient;
228.4 	(2) any fees incurred by the recipient, such as Minnesota health care program fees 
228.5 	and co-pays, legal fees, or costs related to advocate agencies;
228.6 	(3) insurance, except for insurance costs related to employee coverage or fiscal 
228.7 	support entity payments;
228.8 	(4) room and board and personal items that are not related to the disability, except 
228.9 	that medically prescribed specialized diet items may be covered if they reduce the need for 
228.10 	human assistance;
228.11 	(5) home modifications that add square footage;
228.12 	(6) home modifications for a residence other than the primary residence of the 
228.13 	recipient, or in the event of a minor with parents not living together, the primary residences 
228.14 	of the parents;
228.15 	(7) expenses for travel, lodging, or meals related to training the recipient, the parent 
228.16 	or guardian of an adult recipient, or the parent or guardian of a minor child, or paid or 
228.17 	unpaid caregivers that exceed $500 in a 12-month period;
228.18 	(8) experimental treatment;
228.19 	(9) any service or item covered by other medical assistance state plan services, 
228.20 	including prescription and over-the-counter medications, compounds, and solutions and 
228.21 	related fees, including premiums and co-payments;
228.22 	(10) membership dues or costs, except when the service is necessary and appropriate 
228.23 	to treat a physical condition or to improve or maintain the recipient's physical condition. 
228.24 	The condition must be identified in the recipient's plan of care and monitored by a 
228.25 	Minnesota health care program enrolled physician;
228.26 	(11) vacation expenses other than the cost of direct services;
228.27 	(12) vehicle maintenance or modifications not related to the disability;
228.28 	(13) tickets and related costs to attend sporting or other recreational events; and
228.29 	(14) costs related to Internet access, except when necessary for operation of assistive 
228.30 	technology, to increase independence, or to substitute for human assistance.
228.31 		Subd. 8.Self-directed budget requirements. The budget for the provision of the 
228.32 	self-directed service option shall be equal to the greater of either:
228.33 	(1) the annual amount of personal care assistant services under section 256B.0655 
228.34 	that the recipient has used in the most recent 12-month period; or 
229.1 	(2) the amount determined using the consumer support grant methodology under 
229.2 	section 256.476, subdivision 11, except that the budget amount shall include the federal 
229.3 	and nonfederal share of the average service costs.
229.4 		Subd. 9.Quality assurance and risk management. (a) The commissioner 
229.5 	shall establish quality assurance and risk management measures for use in developing 
229.6 	and implementing self-directed plans and budgets that (1) recognize the roles and 
229.7 	responsibilities involved in obtaining services in a self-directed manner, and (2) assure 
229.8 	the appropriateness of such plans and budgets based upon a recipient's resources and 
229.9 	capabilities. These measures must include (i) background studies, and (ii) backup and 
229.10 	emergency plans, including disaster planning.
229.11 	(b) The commissioner shall provide ongoing technical assistance and resource and 
229.12 	educational materials for families and recipients selecting the self-directed option.
229.13 	(c) Performance assessments measures, such as of a recipient's satisfaction with the 
229.14 	services and supports, and ongoing monitoring of health and well-being shall be identified 
229.15 	in consultation with the stakeholder group.
229.16 		Subd. 10.Fiscal support entity. (a) Each recipient shall choose a fiscal support 
229.17 	entity provider certified by the commissioner to make payments for services, items, 
229.18 	supports, and administrative costs related to managing a self-directed service plan 
229.19 	authorized for payment in the approved plan and budget. Recipients shall also choose 
229.20 	the payroll, agency with choice, or the fiscal conduit model of financial and service 
229.21 	management.
229.22 	(b) The fiscal support entity:
229.23 	(1) may not limit or restrict the recipient's choice of service or support providers, 
229.24 	including use of the payroll, agency with choice, or fiscal conduit model of financial 
229.25 	and service management; 
229.26 	(2) must have a written agreement with the recipient or the recipient's representative 
229.27 	that identifies the duties and responsibilities to be performed and the specific related 
229.28 	charges; 
229.29 	(3) must provide the recipient and the home care targeted case manager with a 
229.30 	monthly written summary of the self-directed supports option services that were billed, 
229.31 	including charges from the fiscal support entity;
229.32 	(4) must be knowledgeable of and comply with Internal Revenue Service 
229.33 	requirements necessary to process employer and employee deductions, provide appropriate 
229.34 	and timely submission of employer tax liabilities, and maintain documentation to support 
229.35 	medical assistance claims; 
230.1 	(5) must have current and adequate liability insurance and bonding and sufficient 
230.2 	cash flow and have on staff or under contract a certified public accountant or an individual 
230.3 	with a baccalaureate degree in accounting; and 
230.4 	(6) must maintain records to track all self-directed supports option services 
230.5 	expenditures, including time records of persons paid to provide supports and receipts for 
230.6 	any goods purchased. The records must be maintained for a minimum of five years from 
230.7 	the claim date and be available for audit or review upon request. Claims submitted by 
230.8 	the fiscal support entity must correspond with services, amounts, and time periods as 
230.9 	authorized in the recipient's self-directed supports option plan.
230.10 	(c) The commissioner shall have authority to:
230.11 	(1) set or negotiate rates with fiscal support entities;
230.12 	(2) limit the number of fiscal support entities;
230.13 	(3) identify a process to certify and recertify fiscal support entities and assure fiscal 
230.14 	support entities are available to recipients throughout the state; and 
230.15 	(4) establish a uniform format and protocol to be used by eligible fiscal support 
230.16 	entities.
230.17 		Subd. 11.Stakeholder consultation. The commissioner shall consult with a 
230.18 	statewide consumer-directed services stakeholder group, including representatives of 
230.19 	all types of consumer-directed service users, advocacy organizations, counties, and 
230.20 	consumer-directed service providers. The commissioner shall seek recommendations 
230.21 	from this stakeholder group in developing:
230.22 	(1) the self-directed plan format;
230.23 	(2) requirements and guidelines for the person-centered plan assessment and 
230.24 	planning process;
230.25 	(3) implementation of the option and the quality assurance and risk management 
230.26 	techniques; and 
230.27 	(4) standards and requirements, including rates for the personal support plan 
230.28 	development provider and the fiscal support entity; policies; training; and implementation. 
230.29 	The stakeholder group shall provide recommendations on the repeal of the personal care 
230.30 	assistant choice option, transition issues, and whether the consumer support grant program 
230.31 	under section 256.476 should be modified. The stakeholder group shall meet at least 
230.32 	three times each year to provide advice on policy, implementation, and other aspects of 
230.33 	consumer and self-directed services.

230.34 	EFFECTIVE DATE. Subdivisions 1 to 10 are effective upon federal approval of 
230.35 	the state Medicaid plan amendment. The commissioner of human services shall inform 
231.1 	the Office of the Revisor of Statutes when federal approval is obtained. Subdivision 11 
231.2 	is effective July 1, 2007.

231.3 	Sec. 13. Minnesota Statutes 2006, section 256B.0911, subdivision 3a, is amended to 
231.4 	read:
231.5 		Subd. 3a.Assessment and support planning. (a) Persons requesting assessment, 
231.6 	services planning, or other assistance intended to support community-based living, 
231.7 	including persons who need assessment in order to determine waiver or alternative care 
231.8 	program eligibility, must be visited by a long-term care consultation team within ten 
231.9 	working days after the date on which an assessment was requested or recommended. 
231.10 	Assessments must be conducted according to paragraphs (b) to (g) (i).
231.11 	(b) The county may utilize a team of either the social worker or public health nurse, 
231.12 	or both, to conduct the assessment in a face-to-face interview. The consultation team 
231.13 	members must confer regarding the most appropriate care for each individual screened or 
231.14 	assessed.
231.15 	(c) The long-term care consultation team must assess the health and social needs of 
231.16 	the person, using an assessment form provided by the commissioner.
231.17 	(d) The team must conduct the assessment in a face-to-face interview with the 
231.18 	person being assessed and the person's legal representative, if applicable.
231.19 	(e) The team must provide the person, or the person's legal representative, with 
231.20 	written recommendations for facility- or community-based services. The team must 
231.21 	document that the most cost-effective alternatives available were offered to the individual. 
231.22 	For purposes of this requirement, "cost-effective alternatives" means community services 
231.23 	and living arrangements that cost the same as or less than nursing facility care.
231.24 	(f) If the person chooses to use community-based services, the team must provide 
231.25 	the person or the person's legal representative with a written community support plan, 
231.26 	regardless of whether the individual is eligible for Minnesota health care programs. 
231.27 	The person may request assistance in developing a community support plan without 
231.28 	participating in a complete assessment.
231.29 	(g) The person has the right to make the final decision between nursing facility 
231.30 	placement and community placement after the screening team's recommendation, except 
231.31 	as provided in subdivision 4a, paragraph (c).
231.32 	(h) The team must give the person receiving assessment or support planning, or 
231.33 	the person's legal representative, materials, and forms supplied by the commissioner 
231.34 	containing the following information:
232.1 	(1) the need for and purpose of preadmission screening and assessment if the person 
232.2 	selects nursing facility placement;
232.3 	(2) the role of the long-term care consultation assessment and support planning in 
232.4 	waiver and alternative care program eligibility determination;
232.5 	(2) (3) information about Minnesota health care programs;
232.6 	(3) (4) the person's freedom to accept or reject the recommendations of the team;
232.7 	(4) (5) the person's right to confidentiality under the Minnesota Government Data 
232.8 	Practices Act, chapter 13; and
232.9 	(6) the long-term care consultant's decision regarding the person's need for nursing 
232.10 	facility level of care;
232.11 	(5) (7) the person's right to appeal the decision regarding the need for nursing facility 
232.12 	level of care or the county's final decisions regarding public programs eligibility according 
232.13 	to section 256.045, subdivision 3. 
232.14 	(i) Face-to-face assessment completed as part of eligibility determination for 
232.15 	the alternative care, elderly waiver, community alternatives for disabled individuals, 
232.16 	community alternative care, and traumatic brain injury waiver programs under sections 
232.17 	256B.0915, 256B.0917, and 256B.49 is valid to establish service eligibility for no more 
232.18 	than 60 calendar days after the date of assessment. The effective eligibility start date 
232.19 	for these programs can never be prior to the date of assessment. If an assessment was 
232.20 	completed more than 60 days before the effective waiver or alternative care program 
232.21 	eligibility start date, assessment and support plan information must be updated in a 
232.22 	face-to-face visit and documented in the department's Medicaid Management Information 
232.23 	System (MMIS). The effective date of program eligibility in this case cannot be prior to 
232.24 	the date the updated assessment is completed.

232.25 	Sec. 14. Minnesota Statutes 2006, section 256B.0911, is amended by adding a 
232.26 	subdivision to read:
232.27 		Subd. 3c.Transition to housing with services. (a) Housing with services 
232.28 	establishments offering or providing assisted living under chapter 144G shall inform 
232.29 	all prospective residents of the availability of and contact information for transitional 
232.30 	consultation services under this subdivision prior to executing a lease or contract with the 
232.31 	prospective resident. The purpose of transitional long-term care consultation is to support 
232.32 	persons with current or anticipated long-term care needs in making informed choices 
232.33 	among options that include the most cost-effective and least restrictive settings, and to 
232.34 	delay spenddown to eligibility for publicly funded programs by connecting people to 
232.35 	alternative services in their homes before transition to housing with services. Regardless 
233.1 	of the consultation, prospective residents maintain the right to choose housing with 
233.2 	services or assisted living if that option is their preference.
233.3 	(b) Transitional consultation services are provided as determined by the 
233.4 	commissioner of human services in partnership with county long-term care consultation 
233.5 	units, and the Area Agencies on Aging, and are a combination of telephone-based 
233.6 	and in-person assistance provided under models developed by the commissioner. The 
233.7 	consultation shall be performed in a manner that provides objective and complete 
233.8 	information. Transitional consultation must be provided within five working days of the 
233.9 	request of the prospective resident as follows:
233.10 	(1) the consultation must be provided by a qualified professional as determined by 
233.11 	the commissioner;
233.12 	(2) the consultation must include a review of the prospective resident's reasons for 
233.13 	considering assisted living, the prospective resident's personal goals, a discussion of the 
233.14 	prospective resident's immediate and projected long-term care needs, and alternative 
233.15 	community services or assisted living settings that may meet the prospective resident's 
233.16 	needs; and
233.17 	(3) the prospective resident shall be informed of the availability of long-term care 
233.18 	consultation services described in subdivision 3a that are available at no charge to the 
233.19 	prospective resident to assist the prospective resident in assessment and planning to meet 
233.20 	the prospective resident's long-term care needs.

233.21 	EFFECTIVE DATE. This section is effective October 1, 2008.

233.22 	Sec. 15. Minnesota Statutes 2006, section 256B.0915, is amended to read:
233.23 	256B.0915 MEDICAID WAIVER FOR ELDERLY SERVICES.
233.24 		Subdivision 1.Authority. The commissioner is authorized to apply for a home 
233.25 	and community-based services waiver for the elderly, authorized under section 1915(c) 
233.26 	of the Social Security Act, in order to obtain federal financial participation to expand 
233.27 	the availability of services for persons who are eligible for medical assistance. The 
233.28 	commissioner may apply for additional waivers or pursue other federal financial 
233.29 	participation which is advantageous to the state for funding home care services for the 
233.30 	frail elderly who are eligible for medical assistance. The provision of waivered services 
233.31 	to elderly and disabled medical assistance recipients must comply with the criteria for 
233.32 	service definitions and provider standards approved in the waiver.
233.33 		Subd. 1a.Elderly waiver case management services. (a) Elderly case management 
233.34 	services under the home and community-based services waiver for elderly individuals are 
234.1 	available from providers meeting qualification requirements and the standards specified 
234.2 	in subdivision 1b. Eligible recipients may choose any qualified provider of elderly case 
234.3 	management services.
234.4 	Case management services assist individuals who receive waiver services in gaining 
234.5 	access to needed waiver and other state plan services, as well as needed medical, social, 
234.6 	educational, and other services regardless of the funding source for the services to which 
234.7 	access is gained.
234.8 	A case aide shall provide assistance to the case manager in carrying out 
234.9 	administrative activities of the case management function. The case aide may not assume 
234.10 	responsibilities that require professional judgment including assessments, reassessments, 
234.11 	and care plan development. The case manager is responsible for providing oversight of 
234.12 	the case aide.
234.13 	Case managers shall be responsible for ongoing monitoring of the provision of 
234.14 	services included in the individual's plan of care. Case managers shall initiate and oversee 
234.15 	the process of assessment and reassessment of the individual's care and review plan of 
234.16 	care at intervals specified in the federally approved waiver plan.
234.17 	(b) The county of service or tribe must provide access to and arrange for case 
234.18 	management services. County of service has the meaning given it in Minnesota Rules, 
234.19 	part 9505.0015, subpart 11.
234.20 		Subd. 1b.Provider qualifications and standards. The commissioner must 
234.21 	enroll qualified providers of elderly case management services under the home 
234.22 	and community-based waiver for the elderly under section 1915(c) of the Social 
234.23 	Security Act. The enrollment process shall ensure the provider's ability to meet the 
234.24 	qualification requirements and standards in this subdivision and other federal and state 
234.25 	requirements of this service. An elderly case management provider is an enrolled medical 
234.26 	assistance provider who is determined by the commissioner to have all of the following 
234.27 	characteristics:
234.28 	(1) the demonstrated capacity and experience to provide the components of 
234.29 	case management to coordinate and link community resources needed by the eligible 
234.30 	population;
234.31 	(2) administrative capacity and experience in serving the target population for 
234.32 	whom it will provide services and in ensuring quality of services under state and federal 
234.33 	requirements;
234.34 	(3) a financial management system that provides accurate documentation of services 
234.35 	and costs under state and federal requirements;
235.1 	(4) the capacity to document and maintain individual case records under state and 
235.2 	federal requirements; and
235.3 	(5) the countylead agency may allow a case manager employed by the countylead 
235.4 	agency to delegate certain aspects of the case management activity to another individual 
235.5 	employed by the countylead agency provided there is oversight of the individual by 
235.6 	the case manager. The case manager may not delegate those aspects which require 
235.7 	professional judgment including assessments, reassessments, and care plan development.
235.8 	Lead agencies include counties, health plans, and federally recognized tribes who 
235.9 	authorize services under this section.
235.10 		Subd. 1c.Case management activities under the state plan. The commissioner 
235.11 	shall seek an amendment to the home and community-based services waiver for the 
235.12 	elderly to implement the provisions of subdivisions 1a and 1b. If the commissioner 
235.13 	is unable to secure the approval of the secretary of health and human services for the 
235.14 	requested waiver amendment by December 31, 1993, the commissioner shall amend 
235.15 	the medical assistance state plan to provide that case management provided under the 
235.16 	home and community-based services waiver for the elderly is performed by counties 
235.17 	as an administrative function for the proper and effective administration of the state 
235.18 	medical assistance plan. The state shall reimburse counties for the nonfederal share of 
235.19 	costs for case management performed as an administrative function under the home and 
235.20 	community-based services waiver for the elderly.
235.21 		Subd. 1d.Posteligibility treatment of income and resources for elderly waiver.
 235.22 	Notwithstanding the provisions of section 256B.056, the commissioner shall make the 
235.23 	following amendment to the medical assistance elderly waiver program effective July 1, 
235.24 	1999, or upon federal approval, whichever is later. 
235.25 	A recipient's maintenance needs will be an amount equal to the Minnesota 
235.26 	supplemental aid equivalent rate as defined in section 256I.03, subdivision 5, plus the 
235.27 	medical assistance personal needs allowance as defined in section 256B.35, subdivision 
235.28 	1, paragraph (a), when applying posteligibility treatment of income rules to the gross 
235.29 	income of elderly waiver recipients, except for individuals whose income is in excess of 
235.30 	the special income standard according to Code of Federal Regulations, title 42, section 
235.31 	435.236. Recipient maintenance needs shall be adjusted under this provision each July 1. 
235.32 		Subd. 2.Spousal impoverishment policies. The commissioner shall seek to amend 
235.33 	the federal waiver and the medical assistance state plan to allowapply:
235.34 	(1) the spousal impoverishment criteria as authorized under United States Code, title 
235.35 	42, section 1396r-5, and as implemented in sections 256B.0575, 256B.058, and 256B.059, 
235.36 	except that the amendment shall seek to add to;
236.1 	(2)  the personal needs allowance permitted in section 256B.0575,; and
236.2 	(3) an amount equivalent to the group residential housing rate as set by section 
236.3 	256I.03, subdivision 5, and according to the approved federal waiver and medical 
236.4 	assistance state plan. 
236.5 		Subd. 3.Limits of cases. The number of medical assistance waiver recipients that 
236.6 	a countylead agency may serve must be allocated according to the number of medical 
236.7 	assistance waiver cases open on July 1 of each fiscal year. Additional recipients may be 
236.8 	served with the approval of the commissioner.
236.9 		Subd. 3a.Elderly waiver cost limits. (a) The monthly limit for the cost of waivered 
236.10 	services to an individual elderly waiver client shall be the weighted average monthly 
236.11 	nursing facility rate of the case mix resident class to which the elderly waiver client would 
236.12 	be assigned under Minnesota Rules, parts 9549.0050 to 9549.0059, less the recipient's 
236.13 	maintenance needs allowance as described in subdivision 1d, paragraph (a), until the first 
236.14 	day of the state fiscal year in which the resident assessment system as described in section 
236.15 	256B.437 for nursing home rate determination is implemented. Effective on the first day 
236.16 	of the state fiscal year in which the resident assessment system as described in section 
236.17 	256B.437 for nursing home rate determination is implemented and the first day of each 
236.18 	subsequent state fiscal year, the monthly limit for the cost of waivered services to an 
236.19 	individual elderly waiver client shall be the rate of the case mix resident class to which the 
236.20 	waiver client would be assigned under Minnesota Rules, parts 9549.0050 to 9549.0059, 
236.21 	in effect on the last day of the previous state fiscal year, adjusted by the greater of any 
236.22 	legislatively adopted home and community-based services percentage rate increase or the 
236.23 	average statewide percentage increase in nursing facility payment rates. 
236.24 	(b) If extended medical supplies and equipment or environmental modifications are 
236.25 	or will be purchased for an elderly waiver client, the costs may be prorated for up to 
236.26 	12 consecutive months beginning with the month of purchase. If the monthly cost of a 
236.27 	recipient's waivered services exceeds the monthly limit established in paragraph (a), the 
236.28 	annual cost of all waivered services shall be determined. In this event, the annual cost of 
236.29 	all waivered services shall not exceed 12 times the monthly limit of waivered services as 
236.30 	described in paragraph (a).
236.31 		Subd. 3b.Cost limits for elderly waiver applicants who reside in a nursing 
236.32 	facility. (a) For a person who is a nursing facility resident at the time of requesting a 
236.33 	determination of eligibility for elderly waivered services, a monthly conversion limit 
236.34 	for the cost of elderly waivered services may be requested. The monthly conversion 
236.35 	limit for the cost of elderly waiver services shall be the resident class assigned under 
236.36 	Minnesota Rules, parts 9549.0050 to 9549.0059, for that resident in the nursing facility 
237.1 	where the resident currently resides until July 1 of the state fiscal year in which the 
237.2 	resident assessment system as described in section 256B.437256B.438 for nursing home 
237.3 	rate determination is implemented. Effective on July 1 of the state fiscal year in which 
237.4 	the resident assessment system as described in section 256B.437256B.438 for nursing 
237.5 	home rate determination is implemented, the monthly conversion limit for the cost of 
237.6 	elderly waiver services shall be the per diem nursing facility rate as determined by the 
237.7 	resident assessment system as described in section 256B.437256B.438 for that resident in 
237.8 	the nursing facility where the resident currently resides multiplied by 365 and divided 
237.9 	by 12, less the recipient's maintenance needs allowance as described in subdivision 1d. 
237.10 	The initially approved conversion rate may be adjusted by the greater of any subsequent 
237.11 	legislatively adopted home and community-based services percentage rate increase or 
237.12 	the average statewide percentage increase in nursing facility payment rates. The limit 
237.13 	under this subdivision only applies to persons discharged from a nursing facility after a 
237.14 	minimum 30-day stay and found eligible for waivered services on or after July 1, 1997. 
237.15 	For conversions from the nursing home to the elderly waiver with consumer directed 
237.16 	community support services, the conversion rate limit is equal to the nursing facility rate 
237.17 	reduced by a percentage equal to the percentage difference between the consumer directed 
237.18 	services budget limit that would be assigned according to the federally approved waiver 
237.19 	plan and the corresponding community case mix cap, but not to exceed 50 percent.
237.20 	(b) The following costs must be included in determining the total monthly costs 
237.21 	for the waiver client:
237.22 	(1) cost of all waivered services, including extended medical supplies and equipment 
237.23 	and environmental modifications and adaptations; and
237.24 	(2) cost of skilled nursing, home health aide, and personal care services reimbursable 
237.25 	by medical assistance.
237.26 		Subd. 3c.Service approval and contracting provisions. (a) Medical assistance 
237.27 	funding for skilled nursing services, private duty nursing, home health aide, and personal 
237.28 	care services for waiver recipients must be approved by the case manager and included in 
237.29 	the individual care plan.
237.30 	(b) A countylead agency is not required to contract with a provider of supplies and 
237.31 	equipment if the monthly cost of the supplies and equipment is less than $250.
237.32 		Subd. 3d.Adult foster care rate. The adult foster care rate shall be considered 
237.33 	a difficulty of care payment and shall not include room and board. The adult foster 
237.34 	care service rate shall be negotiated between the countylead agency and the foster care 
237.35 	provider. The elderly waiver payment for the foster care service in combination with 
238.1 	the payment for all other elderly waiver services, including case management, must not 
238.2 	exceed the limit specified in subdivision 3a, paragraph (a).
238.3 		Subd. 3e.Assisted livingCustomized living service rate. (a) Payment for assisted 
238.4 	living servicecustomized living services shall be a monthly rate negotiated and authorized 
238.5 	by the county agency based on an individualized service plan for each resident and may 
238.6 	not cover direct rent or food costs. lead agency within the parameters established by 
238.7 	the commissioner. The payment agreement must delineate the services that have been 
238.8 	customized for each recipient and specify the amount of each service to be provided. The 
238.9 	lead agency shall ensure that there is a documented need for all services authorized. 
238.10 	Customized living services must not include rent or raw food costs. The negotiated 
238.11 	payment rate must be based on services to be provided. Negotiated rates must not exceed 
238.12 	payment rates for comparable elderly waiver or medical assistance services and must 
238.13 	reflect economies of scale.
238.14 	(b) The individualized monthly negotiated payment for assisted livingcustomized 
238.15 	living services as described in section 256B.0913, subdivisions 5d to 5f, and residential 
238.16 	care services as described in section 256B.0913, subdivision 5c, shall not exceed the 
238.17 	nonfederal share, in effect on July 1 of the state fiscal year for which the rate limit 
238.18 	is being calculated, of the greater of either the statewide or any of the geographic 
238.19 	groups' weighted average monthly nursing facility rate of the case mix resident class 
238.20 	to which the elderly waiver eligible client would be assigned under Minnesota Rules, 
238.21 	parts 9549.0050 to 9549.0059, less the maintenance needs allowance as described in 
238.22 	subdivision 1d, paragraph (a), until the July 1 of the state fiscal year in which the resident 
238.23 	assessment system as described in section 256B.437 for nursing home rate determination 
238.24 	is implemented. Effective on July 1 of the state fiscal year in which the resident 
238.25 	assessment system as described in section 256B.437 for nursing home rate determination 
238.26 	is implemented and July 1 of each subsequent state fiscal year, the individualized monthly 
238.27 	negotiated payment for the services described in this clause shall not exceed the limit 
238.28 	described in this clause which was in effect on June 30 of the previous state fiscal year 
238.29 	and which has been adjusted by the greater of any legislatively adopted home and 
238.30 	community-based services cost-of-living percentage increase or any legislatively adopted 
238.31 	statewide percent rate increase for nursing facilities. 
238.32 	(c) The individualized monthly negotiated payment for assisted Customized living 
238.33 	services described in section 144A.4605 and are delivered by a provider licensed by the 
238.34 	Department of Health as a class A or class F home care provider or an assisted living 
238.35 	home care provider and provided in a building that is registered as a housing with services 
238.36 	establishment under chapter 144D and that provides 24-hour supervision in combination 
239.1 	with the payment for other elderly waiver services, including case management, must not 
239.2 	exceed the limit specified in subdivision 3a. 
239.3 		Subd. 3f.Individual service rates; expenditure forecasts. (a) The countylead 
239.4 	agency shall negotiate individual service rates with vendors and may authorize payment 
239.5 	for actual costs up to the county'slead agency's current approved rate. Persons or agencies 
239.6 	must be employed by or under a contract with the countylead agency or the public health 
239.7 	nursing agency of the local board of health in order to receive funding under the elderly 
239.8 	waiver program, except as a provider of supplies and equipment when the monthly cost of 
239.9 	the supplies and equipment is less than $250.
239.10 	(b) Reimbursement for the medical assistance recipients under the approved waiver 
239.11 	shall be made from the medical assistance account through the invoice processing 
239.12 	procedures of the department's Medicaid Management Information System (MMIS), 
239.13 	only with the approval of the client's case manager. The budget for the state share of the 
239.14 	Medicaid expenditures shall be forecasted with the medical assistance budget, and shall 
239.15 	be consistent with the approved waiver.
239.16 		Subd. 3g.Service rate limits; state assumption of costs. (a) To improve access 
239.17 	to community services and eliminate payment disparities between the alternative care 
239.18 	program and the elderly waiver, the commissioner shall establish statewide maximum 
239.19 	service rate limits and eliminate county-specificlead agency-specific service rate limits.
239.20 	(b) Effective July 1, 2001, for service rate limits, except those described or defined in 
239.21 	subdivisions 3d and 3e, the rate limit for each service shall be the greater of the alternative 
239.22 	care statewide maximum rate or the elderly waiver statewide maximum rate.
239.23 	(c) CountiesLead agencies may negotiate individual service rates with vendors for 
239.24 	actual costs up to the statewide maximum service rate limit.
239.25 		Subd. 3h.Service rate limits; 24-hour customized living services. The payment 
239.26 	rates for 24-hour customized living services is a monthly rate negotiated and authorized by 
239.27 	the lead agency within the parameters established by the commissioner of human services. 
239.28 	The payment agreement must delineate the services that have been customized for each 
239.29 	recipient and specify the amount of each service to be provided. The lead agency shall 
239.30 	ensure that there is a documented need for all services authorized. The lead agency shall 
239.31 	not authorize 24-hour customized living services unless there is a documented need for 
239.32 	24-hour supervision. For purposes of this section, "24-hour supervision" means that the 
239.33 	recipient requires assistance due to needs related to one or more of the following:
239.34 	(1) intermittent assistance with toileting or transferring;
239.35 	(2) cognitive or behavioral issues;
239.36 	(3) a medical condition that requires clinical monitoring; or
240.1 	(4) other conditions or needs as defined by the commissioner of human services. 
240.2 	The lead agency shall ensure that the frequency and mode of supervision of the recipient 
240.3 	and the qualifications of staff providing supervision are described and meet the needs 
240.4 	of the recipient. Customized living services must not include rent or raw food costs. 
240.5 	The negotiated payment rate for 24-hour customized living services must be based on 
240.6 	services to be provided. Negotiated rates must not exceed payment rates for comparable 
240.7 	elderly waiver or medical assistance services and must reflect economies of scale. The 
240.8 	individually negotiated 24-hour customized living payments, in combination with the 
240.9 	payment for other elderly waiver services, including case management, must not exceed 
240.10 	the recipient's community budget cap specified in subdivision 3a.
240.11 		Subd. 4.Termination notice. The case manager must give the individual a ten-day 
240.12 	written notice of any denial, reduction, or termination of waivered services.
240.13 		Subd. 5.Assessments and reassessments for waiver clients. Each client shall 
240.14 	receive an initial assessment of strengths, informal supports, and need for services in 
240.15 	accordance with section 256B.0911, subdivisions 3, 3a, and 3b. A reassessment of a 
240.16 	client served under the elderly waiver must be conducted at least every 12 months and 
240.17 	at other times when the case manager determines that there has been significant change 
240.18 	in the client's functioning. This may include instances where the client is discharged 
240.19 	from the hospital. 
240.20 		Subd. 6.Implementation of care plan. Each elderly waiver client shall be provided 
240.21 	a copy of a written care plan that meets the requirements outlined in section 256B.0913, 
240.22 	subdivision 8. The care plan must be implemented by the county administering waivered 
240.23 	servicesof service when it is different than the county of financial responsibility. The 
240.24 	county of service administering waivered services must notify the county of financial 
240.25 	responsibility of the approved care plan.
240.26 		Subd. 7.Prepaid elderly waiver services. An individual for whom a prepaid health 
240.27 	plan is liable for nursing home services or elderly waiver services according to section 
240.28 	256B.69, subdivision 6a, is not eligible to also receive county-administered elderly waiver 
240.29 	services under this section. 
240.30 		Subd. 8.Services and supports. (a) Services and supports shall meet the 
240.31 	requirements set out in United States Code, title 42, section 1396n.
240.32 	(b) Services and supports shall promote consumer choice and be arranged and 
240.33 	provided consistent with individualized, written care plans.
240.34 	(c) The state of Minnesota, county, managed care organization, or tribal government 
240.35 	under contract to administer the elderly waiver shall not be liable for damages, injuries, 
240.36 	or liabilities sustained through the purchase of direct supports or goods by the person, 
241.1 	the person's family, or the authorized representatives with funds received through 
241.2 	consumer-directed community support services under the federally approved waiver plan. 
241.3 	Liabilities include, but are not limited to, workers' compensation liability, the Federal 
241.4 	Insurance Contributions Act (FICA), or the Federal Unemployment Tax Act (FUTA).
241.5 		Subd. 9.Tribal management of elderly waiver. Notwithstanding contrary 
241.6 	provisions of this section, or those in other state laws or rules, the commissioner may 
241.7 	develop a model for tribal management of the elderly waiver program and implement this 
241.8 	model through a contract between the state and any of the state's federally recognized tribal 
241.9 	governments. The model shall include the provision of tribal waiver case management, 
241.10 	assessment for personal care assistance, and administrative requirements otherwise carried 
241.11 	out by countieslead agencies but shall not include tribal financial eligibility determination 
241.12 	for medical assistance.

241.13 	EFFECTIVE DATE. Subdivision 3h is effective the day following final enactment.

241.14 	Sec. 16. Minnesota Statutes 2006, section 256B.095, is amended to read:
241.15 	256B.095 QUALITY ASSURANCE SYSTEM ESTABLISHED.
241.16 	(a) Effective July 1, 1998, a quality assurance system for persons with developmental 
241.17 	disabilities, which includes an alternative quality assurance licensing system for programs, 
241.18 	is established in Dodge, Fillmore, Freeborn, Goodhue, Houston, Mower, Olmsted, Rice, 
241.19 	Steele, Wabasha, and Winona Counties for the purpose of improving the quality of 
241.20 	services provided to persons with developmental disabilities. A county, at its option, may 
241.21 	choose to have all programs for persons with developmental disabilities located within 
241.22 	the county licensed under chapter 245A using standards determined under the alternative 
241.23 	quality assurance licensing system or may continue regulation of these programs under 
241.24 	the licensing system operated by the commissioner. The project expires on June 30, 
241.25 	20092014.
241.26 	(b) Effective July 1, 2003, a county not listed in paragraph (a) may apply to 
241.27 	participate in the quality assurance system established under paragraph (a). The 
241.28 	commission established under section 256B.0951 may, at its option, allow additional 
241.29 	counties to participate in the system.
241.30 	(c) Effective July 1, 2003, any county or group of counties not listed in paragraph (a) 
241.31 	may establish a quality assurance system under this section. A new system established 
241.32 	under this section shall have the same rights and duties as the system established 
241.33 	under paragraph (a). A new system shall be governed by a commission under section 
241.34 	256B.0951. The commissioner shall appoint the initial commission members based 
242.1 	on recommendations from advocates, families, service providers, and counties in the 
242.2 	geographic area included in the new system. Counties that choose to participate in a 
242.3 	new system shall have the duties assigned under section 256B.0952. The new system 
242.4 	shall establish a quality assurance process under section 256B.0953. The provisions of 
242.5 	section 256B.0954 shall apply to a new system established under this paragraph. The 
242.6 	commissioner shall delegate authority to a new system established under this paragraph 
242.7 	according to section 256B.0955.
242.8 	(d) Effective July 1, 2007, the quality assurance system may be expanded to include 
242.9 	programs for persons with disabilities and older adults.

242.10 	Sec. 17. Minnesota Statutes 2006, section 256B.0951, subdivision 1, is amended to 
242.11 	read:
242.12 		Subdivision 1.Membership. The Quality Assurance Commission is established. 
242.13 	The commission consists of at least 14 but not more than 21 members as follows: at 
242.14 	least three but not more than five members representing advocacy organizations; at 
242.15 	least three but not more than five members representing consumers, families, and their 
242.16 	legal representatives; at least three but not more than five members representing service 
242.17 	providers; at least three but not more than five members representing counties; and the 
242.18 	commissioner of human services or the commissioner's designee. The first commission 
242.19 	shall establish membership guidelines for the transition and recruitment of membership for 
242.20 	the commission's ongoing existence. Members of the commission who do not receive a 
242.21 	salary or wages from an employer for time spent on commission duties may receive a per 
242.22 	diem payment when performing commission duties and functions. All members may be 
242.23 	reimbursed for expenses related to commission activities. Notwithstanding the provisions 
242.24 	of section 15.059, subdivision 5, the commission expires on June 30, 20092014.

242.25 	Sec. 18. [256B.096] QUALITY MANAGEMENT, ASSURANCE, AND 
242.26 	IMPROVEMENT SYSTEM FOR MINNESOTANS RECEIVING DISABILITY 
242.27 	SERVICES.
242.28 		Subdivision 1.Scope. In order to improve the quality of services provided to 
242.29 	Minnesotans with disabilities and to meet the requirements of the federally approved home 
242.30 	and community-based waivers under section 1915c of the Social Security Act, a statewide 
242.31 	quality assurance and improvement system for Minnesotans receiving disability services 
242.32 	shall be developed. The disability services included are the home and community-based 
242.33 	services waiver programs for persons with developmental disabilities under section 
242.34 	256B.092, subdivision 4, and for persons with disabilities under section 256B.49.
243.1 		Subd. 2.Stakeholder advisory group. The commissioner shall consult with a 
243.2 	stakeholder advisory group on the development and implementation of the state quality 
243.3 	management, assurance, and improvement system, including representatives of disability 
243.4 	service recipients, disability service providers, disability advocacy groups, county human 
243.5 	service agencies, and state agency staff from the Departments of Human Services and 
243.6 	Health, and the ombudsman for mental health and developmental disabilities on the 
243.7 	development of a statewide quality assurance and improvement system.
243.8 		Subd. 3.Annual survey of service recipients. The commissioner, in consultation 
243.9 	with the stakeholder advisory group, shall develop  an annual independent random 
243.10 	statewide survey of between five and ten percent of service recipients to determine the 
243.11 	effectiveness and quality of disability services. The survey shall be consistent with the 
243.12 	system performance expectations of the Centers for Medicare and Medicaid Services 
243.13 	quality management requirements and framework. The survey shall analyze whether 
243.14 	desired outcomes have been achieved for persons with different demographic, diagnostic, 
243.15 	health, and functional needs receiving different types of services, in different settings, 
243.16 	with different costs. The survey shall be field tested during 2008. The biennial report 
243.17 	established in subdivision 5 shall include recommendations on statewide and regional 
243.18 	reports of the survey results that, if published, would be useful to regions, counties, and 
243.19 	providers to plan and measure the impact of quality improvement activities.
243.20 		Subd. 4.Improvements for incident reporting, investigation, analysis, and 
243.21 	follow-up.  In consultation with the stakeholder advisory group, the commissioner shall 
243.22 	identify the information, data sources, and technology needed to improve the system 
243.23 	of incident reporting, including:
243.24 	(1) reports made under the Maltreatment of Minors and Vulnerable Adults Acts; and 
243.25 	(2) investigation, analysis, and follow-up for disability services.
243.26 	The commissioner must ensure that the federal home and community-based waiver 
243.27 	requirements are met and that incidents that may have jeopardized safety and health or 
243.28 	violated service-related assurances, civil and human rights, and other protections designed 
243.29 	to prevent abuse, neglect, and exploitation, are reviewed, investigated, and acted upon 
243.30 	in a timely manner.
243.31 		Subd. 5.Biennial report. The commissioner shall provide a biennial report to the 
243.32 	chairs of the legislative committees with jurisdiction over health and human services 
243.33 	policy and funding beginning January 15, 2009, on the development and activities of the 
243.34 	quality management, assurance, and improvement system designed to meet the federal 
243.35 	requirements under the home and community-based services waiver programs for persons 
243.36 	with disabilities. By January 15, 2008, the commissioner shall provide a preliminary 
244.1 	report on priorities for meeting the federal requirements, progress on development and 
244.2 	field testing of the annual survey, appropriations necessary to implement an annual survey 
244.3 	of service recipients once field testing is completed, recommendations for improvements 
244.4 	in the incident reporting system, and a plan for incorporating quality assurance efforts 
244.5 	under section 256B.095 and other regional efforts into the statewide system.

244.6 	Sec. 19. Minnesota Statutes 2006, section 256B.431, subdivision 2e, is amended to 
244.7 	read:
244.8 		Subd. 2e.Contracts for services for ventilator-dependent persons. (a) 
244.9 	The commissioner may negotiate with a nursing facility eligible to receive medical 
244.10 	assistance payments to provide services to a ventilator-dependent person identified by the 
244.11 	commissioner according to criteria developed by the commissioner, including:
244.12 	(1) nursing facility care has been recommended for the person by a preadmission 
244.13 	screening team;
244.14 	(2) the person has been hospitalized and no longer requires inpatient acute care 
244.15 	hospital services; and
244.16 	(3) the commissioner has determined that necessary services for the person cannot 
244.17 	be provided under existing nursing facility rates.
244.18 	The commissioner may negotiate an adjustment to the operating cost payment 
244.19 	rate for a nursing facility with a resident who is ventilator-dependent, for that resident. 
244.20 	The negotiated adjustment must reflect only the actual additional cost of meeting the 
244.21 	specialized care needs of a ventilator-dependent person identified by the commissioner 
244.22 	for whom necessary services cannot be provided under existing nursing facility rates and 
244.23 	which are not otherwise covered under Minnesota Rules, parts 9549.0010 to 9549.0080 or 
244.24 	9505.0170 to 9505.0475. For persons who are initially admitted to a nursing facility before 
244.25 	July 1, 2001, and have their payment rate under this subdivision negotiated after July 1, 
244.26 	2001, the negotiated payment rate must not exceed 200 percent of the highest multiple 
244.27 	bedroom payment rate for the facility, as initially established by the commissioner for the 
244.28 	rate year for case mix classification K; or, upon implementation of the RUG's-based case 
244.29 	mix system, 200 percent of the highest RUG's rate. For persons initially admitted to a 
244.30 	nursing facility on or after July 1, 2001, the negotiated payment rate must not exceed 300 
244.31 	percent of the facility's multiple bedroom payment rate for case mix classification K; or, 
244.32 	upon implementation of the RUG's-based case mix system, 300 percent of the highest 
244.33 	RUG's rate. The negotiated adjustment shall not affect the payment rate charged to private 
244.34 	paying residents under the provisions of section   256B.48, subdivision 1. 
245.1 	(b) Effective July 1, 2007, or upon opening a unit of at least ten beds dedicated to 
245.2 	care of ventilator-dependent persons in partnership with Mayo Health Systems, whichever 
245.3 	is later, the operating payment rates for residents determined eligible under paragraph (a) 
245.4 	of a nursing facility in Waseca County that on February 1, 2007, was licensed for 70 beds 
245.5 	and reimbursed under this section, section 256B.434, or section 256B.441, shall be 300 
245.6 	percent of the facility's highest RUG rate.

245.7 	Sec. 20. Minnesota Statutes 2006, section 256B.431, subdivision 17a, is amended to 
245.8 	read:
245.9 		Subd. 17a.Allowable interest expense. (a) Notwithstanding Minnesota Rules, part 
245.10 	9549.0060, subparts 5, item A, subitems (1) and (3), and 7, item D, allowable interest 
245.11 	expense on debt shall include:
245.12 	(1) interest expense on debt related to the cost of purchasing or replacing depreciable 
245.13 	equipment, excluding vehicles, not to exceed six ten percent of the total historical cost 
245.14 	of the project; and
245.15 	(2) interest expense on debt related to financing or refinancing costs, including costs 
245.16 	related to points, loan origination fees, financing charges, legal fees, and title searches; and 
245.17 	issuance costs including bond discounts, bond counsel, underwriter's counsel, corporate 
245.18 	counsel, printing, and financial forecasts. Allowable debt related to items in this clause 
245.19 	shall not exceed seven percent of the total historical cost of the project. To the extent 
245.20 	these costs are financed, the straight-line amortization of the costs in this clause is not an 
245.21 	allowable cost; and
245.22 	(3) interest on debt incurred for the establishment of a debt reserve fund, net of the 
245.23 	interest earned on the debt reserve fund.
245.24 	(b) Debt incurred for costs under paragraph (a) is not subject to Minnesota Rules, 
245.25 	part 9549.0060, subpart 5, item A, subitem (5) or (6).

245.26 	EFFECTIVE DATE. This section is effective October 1, 2007.

245.27 	Sec. 21. Minnesota Statutes 2006, section 256B.434, subdivision 4, is amended to read:
245.28 		Subd. 4.Alternate rates for nursing facilities. (a) For nursing facilities which 
245.29 	have their payment rates determined under this section rather than section 256B.431, the 
245.30 	commissioner shall establish a rate under this subdivision. The nursing facility must enter 
245.31 	into a written contract with the commissioner.
245.32 	(b) A nursing facility's case mix payment rate for the first rate year of a facility's 
245.33 	contract under this section is the payment rate the facility would have received under 
245.34 	section 256B.431.
246.1 	(c) A nursing facility's case mix payment rates for the second and subsequent years 
246.2 	of a facility's contract under this section are the previous rate year's contract payment 
246.3 	rates plus an inflation adjustment and, for facilities reimbursed under this section or 
246.4 	section 256B.431, an adjustment to include the cost of any increase in Health Department 
246.5 	licensing fees for the facility taking effect on or after July 1, 2001. The index for the 
246.6 	inflation adjustment must be based on the change in the Consumer Price Index-All Items 
246.7 	(United States City average) (CPI-U) forecasted by the commissioner of finance's national 
246.8 	economic consultant, as forecasted in the fourth quarter of the calendar year preceding 
246.9 	the rate year. The inflation adjustment must be based on the 12-month period from the 
246.10 	midpoint of the previous rate year to the midpoint of the rate year for which the rate is 
246.11 	being determined. For the rate years beginning on July 1, 1999, July 1, 2000, July 1, 
246.12 	2001, July 1, 2002, July 1, 2003, July 1, 2004, July 1, 2005, July 1, 2006, July 1, 2007, 
246.13 	and July 1, 2008,  October 1, 2009, and October 1, 2010,this paragraph shall apply only 
246.14 	to the property-related payment rate, except that adjustments to include the cost of any 
246.15 	increase in Health Department licensing fees taking effect on or after July 1, 2001, shall 
246.16 	be provided. Beginning in 2005, adjustment to the property payment rate under this 
246.17 	section and section 256B.431 shall be effective on October 1. In determining the amount 
246.18 	of the property-related payment rate adjustment under this paragraph, the commissioner 
246.19 	shall determine the proportion of the facility's rates that are property-related based on the 
246.20 	facility's most recent cost report. 
246.21 	(d) The commissioner shall develop additional incentive-based payments of up to 
246.22 	five percent above a facility's operating payment rate for achieving outcomes specified 
246.23 	in a contract. The commissioner may solicit contract amendments and implement those 
246.24 	which, on a competitive basis, best meet the state's policy objectives. The commissioner 
246.25 	shall limit the amount of any incentive payment and the number of contract amendments 
246.26 	under this paragraph to operate the incentive payments within funds appropriated for this 
246.27 	purpose. The contract amendments may specify various levels of payment for various 
246.28 	levels of performance. Incentive payments to facilities under this paragraph may be in the 
246.29 	form of time-limited rate adjustments or onetime supplemental payments. In establishing 
246.30 	the specified outcomes and related criteria, the commissioner shall consider the following 
246.31 	state policy objectives:
246.32 	(1) successful diversion or discharge of residents to the residents' prior home or other 
246.33 	community-based alternatives;
246.34 	(2) adoption of new technology to improve quality or efficiency; 
246.35 	(3) improved quality as measured in the Nursing Home Report Card; 
246.36 	(4) reduced acute care costs; and
247.1 	(5) any additional outcomes proposed by a nursing facility that the commissioner 
247.2 	finds desirable.
247.3 	(e) Notwithstanding the threshold in section 256B.431, subdivision 16, facilities that 
247.4 	take action to come into compliance with existing or pending requirements of the life 
247.5 	safety code provisions or federal regulations governing sprinkler systems must receive 
247.6 	reimbursement for the costs associated with compliance if all of the following conditions 
247.7 	are met:
247.8 	(1) the expenses associated with compliance occurred on or after January 1, 2005, 
247.9 	and before December 31, 2008;
247.10 	(2) the costs were not otherwise reimbursed under subdivision 4f or section 
247.11 	144A.071 or 144A.073; and
247.12 	(3) the total allowable costs reported under this paragraph are  less than the minimum 
247.13 	threshold established under section 256B.431, subdivision 15, paragraph (e), and 
247.14 	subdivision 16.
247.15 	The commissioner shall use money appropriated for this purpose to provide to qualifying 
247.16 	nursing facilities a rate adjustment beginning October 1, 2007, and ending September 30, 
247.17 	2008. Nursing facilities that have spent money or anticipate the need to spend money 
247.18 	to satisfy the most recent life safety code requirements by (1) installing a sprinkler 
247.19 	system or (2) replacing all or portions of an existing sprinkler system may submit to the 
247.20 	commissioner by June 30, 2007, on a form provided by the commissioner the actual 
247.21 	costs of a completed project or the estimated costs, based on a project bid, of a planned 
247.22 	project. The commissioner shall calculate a rate adjustment equal to the allowable 
247.23 	costs of the project divided by the resident days reported for the report year ending 
247.24 	September 30, 2006. If the costs from all projects exceed the appropriation for this 
247.25 	purpose, the commissioner shall allocate the money appropriated on a pro rata basis to the 
247.26 	qualifying facilities by reducing the rate adjustment determined for each facility by an 
247.27 	equal percentage. Facilities that used estimated costs when requesting the rate adjustment 
247.28 	shall report to the commissioner by January 31, 2009, on the use of this money on a 
247.29 	form provided by the commissioner. If the nursing facility fails to provide the report, the 
247.30 	commissioner shall recoup the money paid to the facility for this purpose. If the facility 
247.31 	reports expenditures allowable under this subdivision that are less than the amount received 
247.32 	in the facility's annualized rate adjustment, the commissioner shall recoup the difference.

247.33 	Sec. 22. Minnesota Statutes 2006, section 256B.434, is amended by adding a 
247.34 	subdivision to read:
248.1 		Subd. 19.Nursing facility rate increases beginning October 1, 2007.  (a) For the 
248.2 	rate year beginning October 1, 2007, the commissioner shall make available to each 
248.3 	nursing facility reimbursed under this section operating payment rate adjustments equal to 
248.4 	1.87 percent of the operating payment rates in effect on September 30, 2007.
248.5 	(b) Seventy-five percent of the money resulting from the rate adjustment under 
248.6 	paragraph (a) must be used for increases in compensation-related costs for employees 
248.7 	directly employed by the nursing facility on or after the effective date of the rate 
248.8 	adjustment, except:
248.9 	(1) the administrator;
248.10 	(2) persons employed in the central office of a corporation that has an ownership 
248.11 	interest in the nursing facility or exercises control over the nursing facility; and 
248.12 	(3) persons paid by the nursing facility under a management contract.
248.13 	(c) Two-thirds of the money available under paragraph (b) must be used for wage 
248.14 	increases for all employees directly employed by the nursing facility on or after the 
248.15 	effective date of the rate adjustment, except those listed in paragraph (b), clauses (1) to 
248.16 	(3). The wage adjustment that employees receive under this paragraph must be paid as 
248.17 	an equal hourly percentage wage increase for all eligible employees. All wage increases 
248.18 	under this paragraph must be effective on the same date. Only costs associated with the 
248.19 	portion of the equal hourly percentage wage increase that goes to all employees shall 
248.20 	qualify under this paragraph. Costs associated with wage increases in excess of the 
248.21 	amount of the equal hourly percentage wage increase provided to all employees shall be 
248.22 	allowed only for meeting the requirements in paragraph (b). This paragraph shall not 
248.23 	apply to employees covered by a collective bargaining agreement.
248.24 	(d) The commissioner shall allow as compensation-related costs all costs for:
248.25 	(1) wages and salaries;
248.26 	(2) FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers' 
248.27 	compensation;
248.28 	(3) the employer's share of health and dental insurance, life insurance, disability 
248.29 	insurance, long-term care insurance, uniform allowance, and pensions; and
248.30 	(4) other benefits provided, subject to the approval of the commissioner.
248.31 	(e) The portion of the rate adjustment under paragraph (a) that is not subject to the 
248.32 	requirements in paragraphs (b) and (c) shall be provided to nursing facilities effective 
248.33 	October 1, 2007.
248.34 	(f) Nursing facilities may apply for the portion of the rate adjustment under 
248.35 	paragraph (a) that is subject to the requirements in paragraphs (b) and (c). The application 
248.36 	must be submitted to the commissioner within six months of the effective date of the 
249.1 	rate adjustment, and the nursing facility must provide additional information required 
249.2 	by the commissioner within nine months of the effective date of the rate adjustment. 
249.3 	The commissioner must respond to all applications within three weeks of receipt. 
249.4 	The commissioner may waive the deadlines in this paragraph under extraordinary 
249.5 	circumstances, to be determined at the sole discretion of the commissioner. The 
249.6 	application must contain:
249.7 	(1) an estimate of the amounts of money that must be used as specified in paragraphs 
249.8 	(b) and (c);
249.9 	(2) a detailed distribution plan specifying the allowable compensation-related and 
249.10 	wage increases the nursing facility will implement to use the funds available in clause (1);
249.11 	(3) a description of how the nursing facility will notify eligible employees of 
249.12 	the contents of the approved application, which must provide for giving each eligible 
249.13 	employee a copy of the approved application, excluding the information required in clause 
249.14 	(1), or posting a copy of the approved application, excluding the information required in 
249.15 	clause (1), for a period of at least six weeks in an area of the nursing facility to which all 
249.16 	eligible employees have access; and
249.17 	(4) instructions for employees who believe they have not received the 
249.18 	compensation-related or wage increases specified in clause (2), as approved by the 
249.19 	commissioner, and which must include a mailing address, e-mail address, and the 
249.20 	telephone number that may be used by the employee to contact the commissioner or the 
249.21 	commissioner's representative.
249.22 	(g) The commissioner shall ensure that cost increases in distribution plans under 
249.23 	paragraph (f), clause (2), that may be included in approved applications, comply with the 
249.24 	following requirements:
249.25 	(1) costs to be incurred during the applicable rate year resulting from wage and 
249.26 	salary increases effective after October 1, 2006, and prior to the first day of the nursing 
249.27 	facility's payroll period that includes October 1, 2007, shall be allowed if they were not 
249.28 	used in the prior year's application;
249.29 	(2) a portion of the costs resulting from tenure-related wage or salary increases 
249.30 	may be considered to be allowable wage increases, according to formulas that the 
249.31 	commissioner shall provide, where employee retention is above the average statewide 
249.32 	rate of retention of direct care employees;
249.33 	(3) the annualized amount of increases in costs for the employer's share of health 
249.34 	and dental insurance, life insurance, disability insurance, and workers' compensation 
249.35 	shall be allowable compensation-related increases if they are effective on or after April 
249.36 	1, 2007, and prior to April 1, 2008; and 
250.1 	(4) for nursing facilities in which employees are represented by an exclusive 
250.2 	bargaining representative, the commissioner shall approve the application only upon 
250.3 	receipt of a letter of acceptance of the distribution plan, in regard to members of the 
250.4 	bargaining unit, signed by the exclusive bargaining agent and dated after enactment of 
250.5 	this subdivision. Upon receipt of the letter of acceptance, the commissioner shall deem 
250.6 	all requirements of this section as having been met in regard to the members of the 
250.7 	bargaining unit.
250.8 	(h) The commissioner shall review applications received under paragraph (f) and 
250.9 	shall provide the portion of the rate adjustment under paragraphs (b) and (c) if the 
250.10 	requirements of this subdivision have been met. The rate adjustment shall be effective 
250.11 	October 1. Notwithstanding paragraph (a), if the approved application distributes less 
250.12 	money than is available, the amount of the rate adjustment shall be reduced so that the 
250.13 	amount of money made available is equal to the amount to be distributed.

250.14 	Sec. 23. Minnesota Statutes 2006, section 256B.434, is amended by adding a 
250.15 	subdivision to read:
250.16 		Subd. 20.Payment of Public Employees Retirement Association costs. Nursing 
250.17 	facilities that participate in the Public Employees Retirement Association (PERA) shall 
250.18 	have the component of their payment rate associated with the costs of PERA determined 
250.19 	for each rate year. Effective for rate years beginning on and after October 1, 2007, the 
250.20 	commissioner shall determine the portion of the payment rate in effect on September 30 
250.21 	each year and shall subtract that amount from the payment rate to be effective on the 
250.22 	following October 1. The portion that shall be deemed to be included in the September 30, 
250.23 	2007, rate that is associated with PERA costs shall be the allowed costs in the facility's 
250.24 	base for determining rates under this section, divided by the resident days reported for that 
250.25 	year. The commissioner shall add to the payment rate to be effective on October 1 each 
250.26 	year an amount equal to the reported costs associated with PERA, for the year ended on 
250.27 	the most recent September 30 for which data is available, divided by total resident days 
250.28 	for that year, as reported by the facility and audited under section 256B.441.

250.29 	Sec. 24. Minnesota Statutes 2006, section 256B.437, is amended by adding a 
250.30 	subdivision to read:
250.31 		Subd. 10.Big Stone County rate adjustment.  Notwithstanding the  requirements 
250.32 	of this section, the commissioner shall approve a planned closure rate adjustment in Big 
250.33 	Stone County for an eight-bed facility in Clinton for reassignment to a 50-bed facility in 
250.34 	Graceville. The adjustment shall be calculated according to subdivisions 3 and 6.

251.1 	Sec. 25. Minnesota Statutes 2006, section 256B.441, subdivision 1, is amended to read:
251.2 		Subdivision 1.Rate determination Rebasing of nursing facility operating cost 
251.3 	payment rates. (a) The commissioner shall establish a value-based nursing facility 
251.4 	reimbursement system which will provide facility-specific, prospective rates for nursing 
251.5 	facilities participating in the medical assistance program. The rates shall be determined 
251.6 	using an annual statistical and cost report filed by each nursing facility. The total payment 
251.7 	rate shall be composed of four rate components: direct care services, support services, 
251.8 	external fixed, and property-related rate components. The payment rate shall be derived 
251.9 	from statistical measures of actual costs incurred in facility operation of nursing facilities. 
251.10 	From this cost basis, the components of the total payment rate shall be adjusted for quality 
251.11 	of services provided, recognition of staffing levels, geographic variation in labor costs, and 
251.12 	resident acuity. The commissioner shall rebase nursing facility operating cost payment 
251.13 	rates to align payments to facilities with the cost of providing care. The rebased operating 
251.14 	cost payment rates shall be calculated using the statistical and cost report filed by each 
251.15 	nursing facility for the report period ending one year prior to the rate year.
251.16 	(b) Rates shall be rebased annually. The new operating cost payment rates based on 
251.17 	this section shall take effect beginning with the rate year beginning October 1, 2008, and 
251.18 	shall be phased in over eight rate years through October 1, 2015.
251.19 	(c) Operating cost payment rates shall be rebased on October 1, 2016, and every 
251.20 	two years after that date.
251.21 	(d) Each cost reporting year shall begin on October 1 and end on the following 
251.22 	September 30. Beginning in 2006, a statistical and cost report shall be filed by each 
251.23 	nursing facility by January 15. Notice of rates shall be distributed by August 15 and the 
251.24 	rates shall go into effect on October 1 for one year.
251.25 	(c) The commissioner shall begin to phase in the new reimbursement system 
251.26 	beginning October 1, 2007. Full phase-in shall be completed by October 1, 2011.
251.27 	(e) Effective October 1, 2014, property rates shall be rebased in accordance with 
251.28 	section 256B.431 and Minnesota Rules, chapter 9549. The commissioner shall determine 
251.29 	what the property payment rate for a nursing facility would be had the facility not had its 
251.30 	property rate determined under section 256B.434. The commissioner shall allow nursing 
251.31 	facilities to provide information affecting this rate determination that would have been 
251.32 	filed annually under Minnesota Rules, chapter 9549, and nursing facilities shall report 
251.33 	information necessary to determine allowable debt. The commissioner shall use this 
251.34 	information to determine the property payment rate.

251.35 	Sec. 26. Minnesota Statutes 2006, section 256B.441, subdivision 2, is amended to read:
252.1 		Subd. 2.Definitions. For purposes of this section, the terms in subdivisions 3 to 
252.2 	42 42a  have the meanings given unless otherwise provided for in this section.

252.3 	Sec. 27. Minnesota Statutes 2006, section 256B.441, subdivision 5, is amended to read:
252.4 		Subd. 5.Administrative costs. "Administrative costs" means the direct costs for 
252.5 	administering the overall activities of the nursing home. These costs include salaries and 
252.6 	wages of the administrator, assistant administrator, business office employees, security 
252.7 	guards, and associated fringe benefits and payroll taxes, fees, contracts, or purchases 
252.8 	related to business office functions, licenses, and permits except as provided in the 
252.9 	external fixed costs category, employee recognition, travel including meals and lodging, 
252.10 	training, voice and data communication or transmission, office supplies, liability insurance 
252.11 	and other forms of insurance not designated to other areas, personnel recruitment, legal 
252.12 	services, accounting services, management or business consultants, data processing, 
252.13 	information technology, Web site, central or home office costs, business meetings and 
252.14 	seminars, postage, fees for professional organizations, subscriptions, security services, 
252.15 	advertising, board of director's fees, working capital interest expense, and bad debts and 
252.16 	bad debt collection fees.

252.17 	Sec. 28. Minnesota Statutes 2006, section 256B.441, subdivision 6, is amended to read:
252.18 		Subd. 6.Allowed costs. "Allowed costs" means the amounts reported by the 
252.19 	facility which are necessary for the operation of the facility and the care of residents 
252.20 	and which are reviewed by the department for accuracy,; reasonableness, in accordance 
252.21 	with the requirements set forth in Title XVIII of the federal Social Security Act and the 
252.22 	interpretations in the provider reimbursement manual; and compliance with this section 
252.23 	and generally accepted accounting principles. All references to costs in this section shall 
252.24 	be assumed to refer to allowed costs.

252.25 	Sec. 29. Minnesota Statutes 2006, section 256B.441, subdivision 10, is amended to 
252.26 	read:
252.27 		Subd. 10.Dietary costs. "Dietary costs" means the costs for the salaries and wages 
252.28 	of the dietary supervisor, dietitians, chefs, cooks, dishwashers, and other employees 
252.29 	assigned to the kitchen and dining room, and associated fringe benefits and payroll 
252.30 	taxes. Dietary costs also includes the salaries or fees of dietary consultants, direct costs 
252.31 	of raw food (both normal and special diet food), dietary supplies, and food preparation 
252.32 	and serving. Also included are special dietary supplements used for tube feeding or oral 
253.1 	feeding, such as elemental high nitrogen diet, even if written as a prescription item by a 
253.2 	physician.

253.3 	Sec. 30. Minnesota Statutes 2006, section 256B.441, subdivision 11, is amended to 
253.4 	read:
253.5 		Subd. 11.Direct care costs category. "Direct care costs category" "Direct care 
253.6 	costs" means costs for nursing services, activities, and social services the wages of nursing 
253.7 	administration, staff education, direct care registered nurses, licensed practical nurses, 
253.8 	certified nursing assistants, trained medication aides, and associated fringe benefits and 
253.9 	payroll taxes; services from a supplemental nursing services agency; supplies that are 
253.10 	stocked at nursing stations or on the floor and distributed or used individually, including, 
253.11 	but not limited to: alcohol, applicators, cotton balls, incontinence pads, disposable ice 
253.12 	bags, dressings, bandages, water pitchers, tongue depressors, disposable gloves, enemas, 
253.13 	enema equipment, soap, medication cups, diapers, plastic waste bags, sanitary products, 
253.14 	thermometers, hypodermic needles and syringes, clinical reagents or similar diagnostic 
253.15 	agents, drugs that are not paid on a separate fee schedule by the medical assistance 
253.16 	program or any other payer, and technology related to the provision of nursing care to 
253.17 	residents, such as electronic charting systems.

253.18 	Sec. 31. Minnesota Statutes 2006, section 256B.441, subdivision 13, is amended to 
253.19 	read:
253.20 		Subd. 13.External fixed costs category. "External fixed costs category" "External 
253.21 	fixed costs"  means costs related to the nursing home surcharge under section 256.9657, 
253.22 	subdivision 1; licensure fees under section 144.122; long-term care consultation fees 
253.23 	under section 256B.0911, subdivision 6; family advisory council fee under section 
253.24 	 144A.33; scholarships under section 256B.431, subdivision 36; planned closure rate 
253.25 	adjustments under section 256B.436 or256B.437; or single bed room incentives under 
253.26 	section 256B.431, subdivision 42; property taxes and property insurance; and PERA.

253.27 	Sec. 32. Minnesota Statutes 2006, section 256B.441, subdivision 14, is amended to 
253.28 	read:
253.29 		Subd. 14.Facility average case mix index. "Facility average case mix index" or 
253.30 	"CMI" means a numerical value score that describes the relative resource use for all 
253.31 	residents within the groups under the resource utilization group (RUG-III) classification 
253.32 	system prescribed by the commissioner based on an assessment of each resident. The 
253.33 	facility average CMI shall be computed as the standardized days divided by total days for 
254.1 	all residents in the facility. The RUG's weights used in this section shall be as follows 
254.2 	for each RUG's class: SE3 1.605; SE2 1.247; SE1 1.081; RAD 1.509; RAC 1.259; RAB 
254.3 	1.109; RAA 0.957; SSC 1.453; SSB 1.224; SSA 1.047; CC2 1.292; CC1 1.200; CB2 
254.4 	1.086; CB1 1.017; CA2 0.908; CA1 0.834; IB2 0.877; IB1 0.817; IA2 0.720; IA1 0.676; 
254.5 	BB2 0.956; BB1 0.885; BA2 0.716; BA1 0.673; PE2 1.199; PE1 1.104; PD2 1.023; 
254.6 	PD1 0.948; PC2 0.926; PC1 0.860; PB2 0.786; PB1 0.734; PA2 0.691; PA1 0.651; BC1 
254.7 	0.651; and DDF 1.000.

254.8 	Sec. 33. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
254.9 	subdivision to read:
254.10 		Subd. 14a.Facility type groups. Facilities shall be classified into two groups, 
254.11 	called "facility type groups," which shall consist of:
254.12 	(1) C&NC/R80: facilities that are hospital-attached, or are licensed under Minnesota 
254.13 	Rules, parts 9570.2000 to 9570.3400; and 
254.14 	(2) freestanding: all other facilities.

254.15 	Sec. 34. Minnesota Statutes 2006, section 256B.441, subdivision 17, is amended to 
254.16 	read:
254.17 		Subd. 17.Fringe benefit costs. "Fringe benefit costs" means the costs for group 
254.18 	life, health, dental, workers' compensation, and other employee insurances and pension, 
254.19 	profit-sharing, and retirement plans for which the employer pays all or a portion of the 
254.20 	costs and that are available to at least all employees who work at least 20 hours per week.

254.21 	Sec. 35. Minnesota Statutes 2006, section 256B.441, subdivision 20, is amended to 
254.22 	read:
254.23 		Subd. 20.Housekeeping costs. "Housekeeping costs" means the costs for the 
254.24 	salaries and wages of the housekeeping supervisor, housekeepers, and other cleaning 
254.25 	employees and associated fringe benefits and payroll taxes. It also includes the cost of 
254.26 	housekeeping supplies, including, but not limited to,  cleaning and lavatory supplies and 
254.27 	contract services.

254.28 	Sec. 36. Minnesota Statutes 2006, section 256B.441, subdivision 24, is amended to 
254.29 	read:
254.30 		Subd. 24.Maintenance and plant operations costs. "Maintenance and plant 
254.31 	operations costs" means the costs for the salaries and wages of the maintenance supervisor, 
254.32 	engineers, heating-plant employees, and other maintenance employees and associated 
255.1 	fringe benefits and payroll taxes. It also includes direct costs for maintenance and 
255.2 	operation of the building and grounds, including, but not limited to,  fuel, electricity, 
255.3 	medical waste and garbage removal, water, sewer, supplies, tools, and repairs.

255.4 	Sec. 37. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
255.5 	subdivision to read:
255.6 		Subd. 28a.Other direct care costs. "Other direct care costs" means the costs 
255.7 	for the salaries and wages and associated fringe benefits and payroll taxes of mental 
255.8 	health workers, religious personnel, and other direct care employees not specified in 
255.9 	the definition of direct care costs. 

255.10 	Sec. 38. Minnesota Statutes 2006, section 256B.441, subdivision 30, is amended to 
255.11 	read:
255.12 		Subd. 30.Peer groups. Facilities shall be classified into three groups, called "peer 
255.13 	groups," which by county. The groups  shall consist of:
255.14 	(1) C&NC/Short Stay/R80 - facilities that have three or more admissions per bed 
255.15 	per year, are hospital-attached, or are licensed under Minnesota Rules, parts 9570.2000 
255.16 	to 9570.3600 group one: facilities in Anoka, Benton, Carlton, Carver, Chisago, Dakota, 
255.17 	Dodge, Goodhue, Hennepin, Isanti, Mille Lacs, Morrison, Olmsted, Ramsey, Rice, Scott, 
255.18 	Sherburne, St. Louis, Stearns, Steele, Wabasha, Washington, Winona, or Wright County;
255.19 	(2) boarding care homes - facilities that have more than 50 percent of their beds 
255.20 	licensed as boarding care homes group two: facilities in Aitkin, Beltrami, Blue Earth, 
255.21 	Brown, Cass, Clay, Cook, Crow Wing, Faribault, Fillmore, Freeborn, Houston, Hubbard, 
255.22 	Itasca, Kanabec, Koochiching, Lake, Lake of the Woods, Le Sueur, Martin, McLeod, 
255.23 	Meeker, Mower, Nicollet, Norman, Pine, Roseau, Sibley, Todd, Wadena, Waseca, 
255.24 	Watonwan, or Wilkin County; and
255.25 	(3) standard - all other facilities group three: facilities in all other counties.

255.26 	Sec. 39. Minnesota Statutes 2006, section 256B.441, subdivision 31, is amended to 
255.27 	read:
255.28 		Subd. 31.Prior rate-setting method system operating cost payment rate. "Prior 
255.29 	rate-setting method" "Prior system operating cost payment rate"  means the operating cost 
255.30 	payment rate determination process in effect prior to October 1, 2006 on September 30, 
255.31 	2008, under Minnesota Rules and Minnesota Statutes, not including planned closure rate 
255.32 	adjustments under section 256B.436 or 256B.437, or single bed room incentives under 
255.33 	section 256B.431, subdivision 42.

256.1 	Sec. 40. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
256.2 	subdivision to read:
256.3 		Subd. 33a.Raw food costs. "Raw food costs" means the cost of food provided to 
256.4 	nursing facility residents. Also included are special dietary supplements used for tube 
256.5 	feeding or oral feeding, such as elemental high nitrogen diet.

256.6 	Sec. 41. Minnesota Statutes 2006, section 256B.441, subdivision 34, is amended to 
256.7 	read:
256.8 		Subd. 34.Related organization. "Related organization" means a person that 
256.9 	furnishes goods or services to a nursing facility and that is a close relative of a nursing 
256.10 	facility, an affiliate of a nursing facility, a close relative of an affiliate of a nursing facility, 
256.11 	or an affiliate of a close relative of an affiliate of a nursing facility. As used in this 
256.12 	subdivision, paragraphs (a) to (d) apply:
256.13 	(a) "Affiliate" means a person that directly, or indirectly through one or more 
256.14 	intermediaries, controls or is controlled by, or is under common control with another 
256.15 	person.
256.16 	(b) "Person" means an individual, a corporation, a partnership, an association, a 
256.17 	trust, an unincorporated organization, or a government or political subdivision.
256.18 	(c) "Close relative of an affiliate of a nursing facility" means an individual whose 
256.19 	relationship by blood, marriage, or adoption to an individual who is an affiliate of a 
256.20 	nursing facility is no more remote than first cousin.
256.21 	(d) "Control" including the terms "controlling," "controlled by," and "under common 
256.22 	control with" means the possession, direct or indirect, of the power to direct or cause the 
256.23 	direction of the management, operations, or policies of a person, whether through the 
256.24 	ownership of voting securities, by contract, or otherwise, or to influence in any manner 
256.25 	other than through an arms length, legal transaction.

256.26 	Sec. 42. Minnesota Statutes 2006, section 256B.441, subdivision 38, is amended to 
256.27 	read:
256.28 		Subd. 38.Social services costs. "Social services costs" means the costs for the 
256.29 	salaries and wages of the supervisor and other social work employees, associated fringe 
256.30 	benefits and payroll taxes, supplies, services, and consultants. This category includes the 
256.31 	cost of those employees who manage and process admission to the nursing facility.

256.32 	Sec. 43. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
256.33 	subdivision to read:
257.1 		Subd. 42a.Therapy costs. "Therapy costs" means any costs related to medical 
257.2 	assistance therapy services provided to residents that are not billed separately from the 
257.3 	daily operating rate.

257.4 	Sec. 44. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
257.5 	subdivision to read:
257.6 		Subd. 46a.Calculation of quality add-on for the rate year beginning October 
257.7 	1, 2007. (a) The payment rate for the rate year beginning October 1, 2007, for the 
257.8 	quality add-on, is a variable amount based on each facility's quality score. For the rate 
257.9 	year, the maximum quality add-on is .3 percent of the operating payment rate in effect 
257.10 	on September 30, 2007. The commissioner shall determine the quality add-on for each 
257.11 	facility according to paragraphs (b) to (d).
257.12 	(b) For each facility, the commissioner shall determine the operating payment rate 
257.13 	in effect on September 30, 2007.
257.14 	(c) For each facility, the commissioner shall determine a ratio of the quality score of 
257.15 	the facility determined in subdivision 44, subtract 40, and then divide by 60. If this value 
257.16 	is less than zero, the commissioner shall use the value zero.
257.17 	(d) For each facility, the quality add-on is the value determined in paragraph (b), 
257.18 	multiplied by the value determined in paragraph (c), multiplied by .3 percent.

257.19 	Sec. 45. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
257.20 	subdivision to read:
257.21 		Subd. 48.Calculation of operating per diems. The direct care per diem for 
257.22 	each facility shall be the facility's direct care costs divided by its standardized days. 
257.23 	The other care-related per diem shall be the sum of the facility's activities costs, other 
257.24 	direct care costs, raw food costs, therapy costs, and social services costs, divided by the 
257.25 	facility's resident days. The other operating per diem shall be the sum of the facility's 
257.26 	administrative costs, dietary costs, housekeeping costs, laundry costs, and maintenance 
257.27 	and plant operations costs divided by the facility's resident days.

257.28 	Sec. 46. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
257.29 	subdivision to read:
257.30 		Subd. 49.Determination of total care-related per diem. The total care-related 
257.31 	per diem for each facility shall be the sum of the direct care per diem and the other 
257.32 	care-related per diem.

258.1 	Sec. 47. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
258.2 	subdivision to read:
258.3 		Subd. 50.Determination of total care-related limit. (a) The limit on the total 
258.4 	care-related per diem shall be determined for each peer group and facility type group 
258.5 	combination. A facility's total care-related per diems shall be limited to 120 percent of the 
258.6 	median for the facility's peer and facility type group. The facility-specific direct care costs 
258.7 	used in making this comparison and in the calculation of the median shall be based on a 
258.8 	RUG's weight of 1.00. A facility that is above that limit shall have its total care-related per 
258.9 	diem reduced to the limit. If a reduction of the total care-related per diem is necessary 
258.10 	because of this limit, the reduction shall be made proportionally to both the direct care per 
258.11 	diem and the other care-related per diem.
258.12 	(b) Beginning with rates determined for October 1, 2016, the total care-related limit 
258.13 	shall be a variable amount based on each facility's quality score, as determined under 
258.14 	section 256B.441, subdivision 44, in accordance with clauses (1) to (4):
258.15 	(1) for each facility, the commissioner shall determine the quality score, subtract 40, 
258.16 	divide by 40, and convert to a percentage;
258.17 	(2) if the value determined in clause (1) is less than zero, the total care-related limit 
258.18 	shall be 105 percent of the median for the facility's peer and facility type group;
258.19 	(3) if the value determined in clause (1) is greater than 100 percent, the total 
258.20 	care-related limit shall be 125 percent of the median for the facility's peer and facility 
258.21 	type group; and 
258.22 	(4) if the value determined in clause (1) is greater than zero and less than 100 
258.23 	percent, the total care-related limit shall be 105 percent of the median for the facility's peer 
258.24 	and facility type group plus one-fifth of the percentage determined in clause (1).

258.25 	Sec. 48. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
258.26 	subdivision to read:
258.27 		Subd. 50a.Determination of proximity adjustments. For a nursing facility 
258.28 	located in close proximity to another nursing facility of the same facility group type but in 
258.29 	a different peer group and that has higher limits for care-related or other operating costs, 
258.30 	the commissioner shall adjust the limits in accordance with clauses (1) to (4):
258.31 	(1) determine the difference between the limits;
258.32 	(2) determine the distance between the two facilities, by the shortest driving route. If 
258.33 	the distance exceeds 20 miles, no adjustment shall be made;
258.34 	(3) subtract the value in clause (2) from 20 miles, divide by 20, and convert to a 
258.35 	percentage; and 
259.1 	(4) increase the limits for the nursing facility with the lower limits by the value 
259.2 	determined in clause (1) multiplied by the value determined in clause (3).

259.3 	Sec. 49. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
259.4 	subdivision to read:
259.5 		Subd. 51.Determination of other operating limit. The limit on the other operating 
259.6 	per diem shall be determined for each peer group. A facility's other operating per diem 
259.7 	shall be limited to 105 percent of the median for its peer group. A facility that is above 
259.8 	that limit shall have its other operating per diem reduced to the limit.

259.9 	Sec. 50. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
259.10 	subdivision to read:
259.11 		Subd. 51a.Exception allowing contracting for specialized care. (a) For rate years 
259.12 	beginning on or after October 1, 2016, the commissioner may negotiate increases to 
259.13 	the care-related limit for nursing facilities that provide specialized care, at a cost to the 
259.14 	general fund not to exceed $600,000 per year. The commissioner shall publish a request 
259.15 	for proposals annually, and may negotiate increases to the limits that shall apply for either 
259.16 	one or two years before the increase shall be subject to a new proposal and negotiation. 
259.17 	The care-related limit may be increased by up to 50 percent.
259.18 	(b) In selecting facilities with which to negotiate, the commissioner shall consider:
259.19 	(1) the diagnoses or other circumstances of residents in the specialized program that 
259.20 	require care that costs substantially more than the RUG's rates associated with those 
259.21 	residents;
259.22 	(2) the nature of the specialized program or programs offered to meet the needs 
259.23 	of these individuals; and 
259.24 	(3) outcomes achieved by the specialized program.

259.25 	Sec. 51. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
259.26 	subdivision to read:
259.27 		Subd. 52.Determination of efficiency incentive. Each facility shall be eligible 
259.28 	for an efficiency incentive based on its other operating per diem. A facility with an other 
259.29 	operating per diem that exceeds the limit in subdivision 51 shall receive no efficiency 
259.30 	incentive. All other facilities shall receive an incentive calculated as 50 percent times the 
259.31 	difference between the facility's other operating per diem and its other operating per diem 
259.32 	limit, up to a maximum incentive of $3.

260.1 	Sec. 52. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
260.2 	subdivision to read:
260.3 		Subd. 53.Calculation of payment rate for external fixed costs. The commissioner 
260.4 	shall calculate a payment rate for external fixed costs.
260.5 	(a) For a facility licensed as a nursing home, the portion related to section 256.9657 
260.6 	shall be equal to $8.86. For a facility licensed as both a nursing home and a boarding care 
260.7 	home, the portion related to section 256.9657 shall be equal to $8.86 multiplied by the 
260.8 	result of its number of nursing home beds divided by its total number of licensed beds.
260.9 	(b) The portion related to the licensure fee under section 144.122, paragraph (d), 
260.10 	shall be the amount of the fee divided by actual resident days.
260.11 	(c) The portion related to scholarships shall be determined under section 256B.431, 
260.12 	subdivision 36.
260.13 	(d) The portion related to long-term care consultation shall be determined according 
260.14 	to section 256B.0911, subdivision 6.
260.15 	(e) The portion related to development and education of resident and family advisory 
260.16 	councils under section 144A.33 shall be $5 divided by 365.
260.17 	(f) The portion related to planned closure rate adjustments shall be as determined 
260.18 	under sections 256B.436 and 256B.437, subdivision 6. Planned closure rate adjustments 
260.19 	that take effect before October 1, 2014, shall no longer be included in the payment rate 
260.20 	for external fixed costs beginning October 1, 2016. Planned closure rate adjustments that 
260.21 	take effect on or after October 1, 2014, shall no longer be included in the payment rate 
260.22 	for external fixed costs beginning on October 1 of the first year not less than two years 
260.23 	after their effective date.
260.24 	(g) The portions related to property insurance, real estate taxes, special assessments, 
260.25 	and payments made in lieu of real estate taxes directly identified or allocated to the nursing 
260.26 	facility shall be the actual amounts divided by actual resident days.
260.27 	(h) The portion related to the Public Employees Retirement Association shall be 
260.28 	actual costs divided by resident days.
260.29 	(i) The single bed room incentives shall be as determined under section 256B.431, 
260.30 	subdivision 42. Single bed room incentives that take effect before October 1, 2014, shall 
260.31 	no longer be included in the payment rate for external fixed costs beginning October 1, 
260.32 	2016. Single bed room incentives that take effect on or after October 1, 2014, shall no 
260.33 	longer be included in the payment rate for external fixed costs beginning on October 1 of 
260.34 	the first year not less than two years after their effective date.
260.35 	(j) The payment rate for external fixed costs shall be the sum of the amounts in 
260.36 	paragraphs (a) to (i).

261.1 	Sec. 53. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
261.2 	subdivision to read:
261.3 		Subd. 54.Determination of total payment rates. In rate years when rates are 
261.4 	rebased, the total payment rate for a RUG's weight of 1.00 shall be the sum of the total 
261.5 	care-related payment rate, other operating payment rate, efficiency incentive, external 
261.6 	fixed cost rate, and the property rate determined under section 256B.434. To determine 
261.7 	a total payment rate for each RUG's level, the total care-related payment rate shall be 
261.8 	divided into the direct care payment rate and the other care-related payment rate, and the 
261.9 	direct care payment rate multiplied by the RUG's weight for each RUG's level using the 
261.10 	weights in subdivision 14.

261.11 	Sec. 54. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
261.12 	subdivision to read:
261.13 		Subd. 55.Phase-in of rebased operating cost payment rates.  (a) For the rate years 
261.14 	beginning October 1, 2008, to October 1, 2012, the operating cost payment rate calculated 
261.15 	under this section shall be phased in by blending the operating cost rate with the operating 
261.16 	cost payment rate determined under section 256B.434. For the rate year beginning 
261.17 	October 1, 2008, the operating cost payment rate for each facility shall be 13 percent of 
261.18 	the operating cost payment rate from this section, and 87 percent of the operating cost 
261.19 	payment rate from section 256B.434. For the rate year beginning October 1, 2009, the 
261.20 	operating cost payment rate for each facility shall be 14 percent of the operating cost 
261.21 	payment rate from this section, and 86 percent of the operating cost payment rate from 
261.22 	section 256B.434. For the rate year beginning October 1, 2010, the operating cost payment 
261.23 	rate for each facility shall be 14 percent of the operating cost payment rate from this 
261.24 	section, and 86 percent of the operating cost payment rate from section 256B.434. For the 
261.25 	rate year beginning October 1, 2011, the operating cost payment rate for each facility shall 
261.26 	be 31 percent of the operating cost payment rate from this section, and 69 percent of the 
261.27 	operating cost payment rate from section 256B.434. For the rate year beginning October 1, 
261.28 	2012, the operating cost payment rate for each facility shall be 48 percent of the operating 
261.29 	cost payment rate from this section, and 52 percent of the operating cost payment rate 
261.30 	from section 256B.434. For the rate year beginning October 1, 2013, the operating cost 
261.31 	payment rate for each facility shall be 65 percent of the operating cost payment rate from 
261.32 	this section, and 35 percent of the operating cost payment rate from section 256B.434. For 
261.33 	the rate year beginning October 1, 2014, the operating cost payment rate for each facility 
261.34 	shall be 82 percent of the operating cost payment rate from this section, and 18 percent 
261.35 	of the operating cost payment rate from section 256B.434. For the rate year beginning 
262.1 	October 1, 2015, the operating cost payment rate for each facility shall be the operating 
262.2 	cost payment rate determined under this section. The blending of operating cost payment 
262.3 	rates under this section shall be performed separately for each RUG's class.
262.4 	(b) A portion of the funds received under this subdivision that are in excess of 
262.5 	operating cost payment rates that a facility would have received under section 256B.434, 
262.6 	as determined in accordance with clauses (1) to (3), shall be subject to the requirements in 
262.7 	section 256B.434, subdivision 19, paragraphs (b) to (h).
262.8 	(1) Determine the amount of additional funding available to a facility, which shall be 
262.9 	equal to total medical assistance resident days from the most recent reporting year times 
262.10 	the difference between the blended rate determined in paragraph (a) for the rate year being 
262.11 	computed and the blended rate for the prior year.
262.12 	(2) Determine the portion of all operating costs, for the most recent reporting year, 
262.13 	that are compensation related. If this value exceeds 75 percent, use 75 percent.
262.14 	(3) Subtract the amount determined in clause (2) from 75 percent.
262.15 	(4) The portion of the fund received under this subdivision that shall be subject to 
262.16 	the requirements in section 256B.434, subdivision 19, paragraphs (b) to (h), shall equal 
262.17 	the amount determined in clause (1) times the amount determined in clause (3).

262.18 	Sec. 55. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
262.19 	subdivision to read:
262.20 		Subd. 56.Hold harmless. For the rate years beginning October 1, 2008, to October 
262.21 	1, 2016, no nursing facility shall receive an operating cost payment rate less than its 
262.22 	operating cost payment rate under section 256B.434. The comparison of operating cost 
262.23 	payment rates under this section shall be made for a RUG's rate with a weight of 1.00.

262.24 	Sec. 56. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
262.25 	subdivision to read:
262.26 		Subd. 57.Appeals. Nursing facilities may appeal, as described under section 
262.27 	256B.50, the determination of a payment rate established under this chapter.

262.28 	Sec. 57. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
262.29 	subdivision to read:
262.30 		Subd. 58.Implementation delay. Within six months prior to the effective date of 
262.31 	(1) rebasing of property payment rates under subdivision 1; (2) quality-based rate limits 
262.32 	under subdivision 50; and (3) the removal of planned closure rate adjustments and single 
262.33 	bed room incentives from external fixed costs under subdivision 53, the commissioner 
263.1 	shall compare the average operating cost for all facilities combined from the most recent 
263.2 	cost reports to the average medical assistance operating payment rates for all facilities 
263.3 	combined from the same time period. Each provision shall not go into effect until the 
263.4 	average medical assistance operating payment rate is at least 92 percent of the average 
263.5 	operating cost.

263.6 	Sec. 58. Minnesota Statutes 2006, section 256B.49, is amended by adding a 
263.7 	subdivision to read:
263.8 		Subd. 16a.Medical assistance reimbursement. (a) The commissioner shall 
263.9 	seek federal approval for medical assistance reimbursement of independent living skills 
263.10 	services, foster care waiver service, supported employment, prevocational service, 
263.11 	structured day service, and adult day care under the home and community-based waiver 
263.12 	for persons with a traumatic brain injury, the community alternatives for disabled 
263.13 	individuals waivers, and the community alternative care waivers.
263.14 	(b) Medical reimbursement shall be made only when the provider demonstrates 
263.15 	evidence of its capacity to meet basic health, safety, and protection standards through 
263.16 	one of the methods in paragraphs (c) to (e).
263.17 	(c) The provider is licensed to provide services under chapter 245B and agrees to 
263.18 	apply these standards to services funded through the traumatic brain injury, community 
263.19 	alternatives for disabled, or community alternative care home and community-based 
263.20 	waivers.
263.21 	(d) The local agency contracting for the services certifies on a form provided by the 
263.22 	commissioner that the provider has the capacity to meet the individual needs as identified 
263.23 	in each person's individual service plan. When certifying that the service provider meets 
263.24 	the necessary provider qualifications, the local agency shall verify that the provider has 
263.25 	policies and procedures governing the following:
263.26 	(1) protection of the consumer's rights and privacy;
263.27 	(2) risk assessment and planning;
263.28 	(3) record keeping and reporting of incidents and emergencies with documentation 
263.29 	of corrective action if needed;
263.30 	(4) service outcomes, regular reviews of progress, and periodic reports;
263.31 	(5) complaint and grievance procedures;
263.32 	(6) service termination or suspension;
263.33 	(7) necessary training and supervision of direct care staff that includes:
263.34 	(i) documentation in personnel files of 20 hours of orientation training in providing 
263.35 	training related to service provision;
264.1 	(ii) training in recognizing the symptoms and effects of certain disabilities, health 
264.2 	conditions, and positive behavioral supports and interventions; and 
264.3 	(iii) a minimum of five hours of related training annually; and 
264.4 	(iv) when applicable:
264.5 	(A) safe medication administration;
264.6 	(B) proper handling of consumer funds; and 
264.7 	(C) compliance with prohibitions and standards developed by the commissioner to 
264.8 	satisfy federal requirements regarding the use of restraints and restrictive interventions. 
264.9 	The local agency shall review at least annually each service provider's continued 
264.10 	compliance with the standards governing basic health, safety, and protection of rights.
264.11 	(h) The commissioner shall seek federal approval for Medicaid reimbursement 
264.12 	of foster care services under the home and community-based waiver for persons with 
264.13 	a traumatic brain injury, the community alternatives for disabled individuals waiver, 
264.14 	and community alternative care waiver when the provider demonstrates evidence of its 
264.15 	capacity to meet basic health, safety, and protection standards. The local agency shall 
264.16 	verify that the provider is licensed under Minnesota Rules, parts 9555.5105 to 9555.6265, 
264.17 	and certify that the provider has policies and procedures that govern:
264.18 	(1) compliance with prohibitions and standards developed by the commissioner to 
264.19 	meet federal requirements regarding the use of restraints and restrictive interventions; and 
264.20 	(2) documentation of service needs and outcomes, regular reviews of progress, 
264.21 	and periodic reports.
264.22 	The local agency shall review at least annually each service provider's continued 
264.23 	compliance with the standards governing basic health, safety, and protection of rights 
264.24 	standards.

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

264.26 	Sec. 59. Minnesota Statutes 2006, section 256B.5012, is amended by adding a 
264.27 	subdivision to read:
264.28 		Subd. 7.ICF/MR rate increases effective October 1, 2007, and October 1, 2008.
 264.29 	(a) For the rate year beginning October 1, 2007, the commissioner shall make available to 
264.30 	each facility reimbursed under this section operating payment rate adjustments equal to 2.0 
264.31 	percent of the operating payment rates in effect on September 30, 2007. For the rate year 
264.32 	beginning July 1, 2008, the commissioner shall make available to each facility reimbursed 
264.33 	under this section operating payment rate adjustments equal to 2.0 percent of the operating 
264.34 	payment rates in effect on June 30, 2008. For each facility, the commissioner shall make 
265.1 	available an adjustment, based on occupied beds, using the percentage specified in this 
265.2 	paragraph multiplied by the total payment rate, including the variable rate but excluding 
265.3 	the property-related payment rate, in effect on the preceding day. The total payment rate 
265.4 	shall include the adjustment provided in section 256B.501, subdivision 12. A facility 
265.5 	whose payment rates are governed by closure agreements, receivership agreements, or 
265.6 	Minnesota Rules, part 9553.0075, is not eligible for an adjustment otherwise granted 
265.7 	under this subdivision.
265.8 	(b) Seventy-five percent of the money resulting from the rate adjustments under 
265.9 	paragraph (a) must be used for increases in compensation-related costs for employees 
265.10 	directly employed by the facility on or after the effective date of the rate adjustments, 
265.11 	except:
265.12 	(1) the administrator;
265.13 	(2) persons employed in the central office of a corporation that has an ownership 
265.14 	interest in the facility or exercises control over the facility; and 
265.15 	(3) persons paid by the facility under a management contract.
265.16 	(c) Two-thirds of the money available under paragraph (b) must be used for wage 
265.17 	increases for all employees directly employed by the facility on or after the effective 
265.18 	date of the rate adjustments, except those listed in paragraph (b), clauses (1) to (3). The 
265.19 	wage adjustment that employees receive under this paragraph must be paid as an equal 
265.20 	hourly percentage wage increase for all eligible employees. All wage increases under this 
265.21 	paragraph must be effective on the same date. Only costs associated with the portion of 
265.22 	the equal hourly percentage wage increase that goes to all employees shall qualify under 
265.23 	this paragraph. Costs associated with wage increases in excess of the amount of the equal 
265.24 	hourly percentage wage increase provided to all employees shall be allowed only for 
265.25 	meeting the requirements in paragraph (b). This paragraph shall not apply to employees 
265.26 	covered by a collective bargaining agreement.
265.27 	(d) The commissioner shall allow as compensation-related costs all costs for:
265.28 	(1) wages and salaries;
265.29 	(2) FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers' 
265.30 	compensation;
265.31 	(3) the employer's share of health and dental insurance, life insurance, disability 
265.32 	insurance, long-term care insurance, uniform allowance, and pensions; and
265.33 	(4) other benefits provided, subject to the approval of the commissioner.
265.34 	(e) The portion of the rate adjustments under paragraph (a) that is not subject to the 
265.35 	requirements in paragraphs (b) and (c) shall be provided to facilities effective October 
265.36 	1 of each year.
266.1 	(f) Facilities may apply for the portion of the rate adjustments under paragraph 
266.2 	(a) that is subject to the requirements in paragraphs (b) and (c). The application 
266.3 	must be submitted to the commissioner within six months of the effective date of the 
266.4 	rate adjustments, and the facility must provide additional information required by 
266.5 	the commissioner within nine months of the effective date of the rate adjustments. 
266.6 	The commissioner must respond to all applications within three weeks of receipt. 
266.7 	The commissioner may waive the deadlines in this paragraph under extraordinary 
266.8 	circumstances, to be determined at the sole discretion of the commissioner. The 
266.9 	application must contain:
266.10 	(1) an estimate of the amounts of money that must be used as specified in paragraphs 
266.11 	(b) and (c);
266.12 	(2) a detailed distribution plan specifying the allowable compensation-related and 
266.13 	wage increases the facility will implement to use the funds available in clause (1);
266.14 	(3) a description of how the facility will notify eligible employees of the contents of 
266.15 	the approved application, which must provide for giving each eligible employee a copy of 
266.16 	the approved application, excluding the information required in clause (1), or posting a 
266.17 	copy of the approved application, excluding the information required in clause (1), for 
266.18 	a period of at least six weeks in an area of the facility to which all eligible employees 
266.19 	have access; and
266.20 	(4) instructions for employees who believe they have not received the 
266.21 	compensation-related or wage increases specified in clause (2), as approved by the 
266.22 	commissioner, and which must include a mailing address, e-mail address, and the 
266.23 	telephone number that may be used by the employee to contact the commissioner or the 
266.24 	commissioner's representative.
266.25 	(g) The commissioner shall ensure that cost increases in distribution plans under 
266.26 	paragraph (f), clause (2), that may be included in approved applications, comply with 
266.27 	requirements in clauses (1) to (4):
266.28 	(1) costs to be incurred during the applicable rate year resulting from wage and 
266.29 	salary increases effective after October 1, 2006, and prior to the first day of the facility's 
266.30 	payroll period that includes October 1 of each year shall be allowed if they were not used 
266.31 	in the prior year's application and they meet the requirements of paragraphs (b) and (c);
266.32 	(2) a portion of the costs resulting from tenure-related wage or salary increases 
266.33 	may be considered to be allowable wage increases, according to formulas that the 
266.34 	commissioner shall provide, where employee retention is above the average statewide 
266.35 	rate of retention of direct care employees;
267.1 	(3) the annualized amount of increases in costs for the employer's share of health 
267.2 	and dental insurance, life insurance, disability insurance, and workers' compensation shall 
267.3 	be allowable compensation-related increases if they are effective on or after April 1 of 
267.4 	the year in which the rate adjustments are effective and prior to April 1 of the following 
267.5 	year; and 
267.6 	(4) for facilities in which employees are represented by an exclusive bargaining 
267.7 	representative, the commissioner shall approve the application only upon receipt of a letter 
267.8 	of acceptance of the distribution plan, as regards members of the bargaining unit, signed 
267.9 	by the exclusive bargaining agent and dated after enactment of this subdivision. Upon 
267.10 	receipt of the letter of acceptance, the commissioner shall deem all requirements of this 
267.11 	section as having been met in regard to the members of the bargaining unit.
267.12 	(h) The commissioner shall review applications received under paragraph (f) and 
267.13 	shall provide the portion of the rate adjustments under paragraphs (b) and (c) if the 
267.14 	requirements of this subdivision have been met. The rate adjustments shall be effective 
267.15 	October 1 of each year. Notwithstanding paragraph (a), if the approved application 
267.16 	distributes less money than is available, the amount of the rate adjustment shall be reduced 
267.17 	so that the amount of money made available is equal to the amount to be distributed.

267.18 	Sec. 60. Minnesota Statutes 2006, section 256B.69, subdivision 23, is amended to read:
267.19 		Subd. 23.Alternative services; elderly and disabled persons. (a) The 
267.20 	commissioner may implement demonstration projects to create alternative integrated 
267.21 	delivery systems for acute and long-term care services to elderly persons and persons 
267.22 	with disabilities as defined in section 256B.77, subdivision 7a, that provide increased 
267.23 	coordination, improve access to quality services, and mitigate future cost increases. 
267.24 	The commissioner may seek federal authority to combine Medicare and Medicaid 
267.25 	capitation payments for the purpose of such demonstrations and may contract with 
267.26 	Medicare-approved special needs plans to provide Medicaid services. Medicare funds and 
267.27 	services shall be administered according to the terms and conditions of the federal contract 
267.28 	and demonstration provisions. For the purpose of administering medical assistance funds, 
267.29 	demonstrations under this subdivision are subject to subdivisions 1 to 22. The provisions 
267.30 	of Minnesota Rules, parts 9500.1450 to 9500.1464, apply to these demonstrations, 
267.31 	with the exceptions of parts 9500.1452, subpart 2, item B; and 9500.1457, subpart 1, 
267.32 	items B and C, which do not apply to persons enrolling in demonstrations under this 
267.33 	section. An initial open enrollment period may be provided. Persons who disenroll from 
267.34 	demonstrations under this subdivision remain subject to Minnesota Rules, parts 9500.1450
267.35 	to 9500.1464. When a person is enrolled in a health plan under these demonstrations and 
268.1 	the health plan's participation is subsequently terminated for any reason, the person shall 
268.2 	be provided an opportunity to select a new health plan and shall have the right to change 
268.3 	health plans within the first 60 days of enrollment in the second health plan. Persons 
268.4 	required to participate in health plans under this section who fail to make a choice of 
268.5 	health plan shall not be randomly assigned to health plans under these demonstrations. 
268.6 	Notwithstanding section 256L.12, subdivision 5, and Minnesota Rules, part 9505.5220, 
268.7 	subpart 1, item A, if adopted, for the purpose of demonstrations under this subdivision, 
268.8 	the commissioner may contract with managed care organizations, including counties, to 
268.9 	serve only elderly persons eligible for medical assistance, elderly and disabled persons, or 
268.10 	disabled persons only. For persons with a primary diagnosis of developmental disability, 
268.11 	serious and persistent mental illness, or serious emotional disturbance, the commissioner 
268.12 	must ensure that the county authority has approved the demonstration and contracting 
268.13 	design. Enrollment in these projects for persons with disabilities shall be voluntary. The 
268.14 	commissioner shall not implement any demonstration project under this subdivision for 
268.15 	persons with a primary diagnosis of developmental disabilities, serious and persistent 
268.16 	mental illness, or serious emotional disturbance, without approval of the county board of 
268.17 	the county in which the demonstration is being implemented.
268.18 	(b) Notwithstanding chapter 245B, sections 252.40 to 252.46, 256B.092, 256B.501
268.19 	to 256B.5015, and Minnesota Rules, parts 9525.0004 to 9525.0036, 9525.1200 to 
268.20 	9525.1330, 9525.1580, and 9525.1800 to 9525.1930, the commissioner may implement 
268.21 	under this section projects for persons with developmental disabilities. The commissioner 
268.22 	may capitate payments for ICF/MR services, waivered services for developmental 
268.23 	disabilities, including case management services, day training and habilitation and 
268.24 	alternative active treatment services, and other services as approved by the state and by 
268.25 	the federal government. Case management and active treatment must be individualized 
268.26 	and developed in accordance with a person-centered plan. Costs under these projects may 
268.27 	not exceed costs that would have been incurred under fee-for-service. Beginning July 1, 
268.28 	2003, and until twofour years after the pilot project implementation date, subcontractor 
268.29 	participation in the long-term care developmental disability pilot is limited to a nonprofit 
268.30 	long-term care system providing ICF/MR services, home and community-based waiver 
268.31 	services, and in-home services to no more than 120 consumers with developmental 
268.32 	disabilities in Carver, Hennepin, and Scott Counties. The commissioner shall report to the 
268.33 	legislature prior to expansion of the developmental disability pilot project. This paragraph 
268.34 	expires twofour years after the implementation date of the pilot project.
268.35 	(c) Before implementation of a demonstration project for disabled persons, the 
268.36 	commissioner must provide information to appropriate committees of the house of 
269.1 	representatives and senate and must involve representatives of affected disability groups 
269.2 	in the design of the demonstration projects.
269.3 	(d) A nursing facility reimbursed under the alternative reimbursement methodology 
269.4 	in section 256B.434 may, in collaboration with a hospital, clinic, or other health care entity 
269.5 	provide services under paragraph (a). The commissioner shall amend the state plan and 
269.6 	seek any federal waivers necessary to implement this paragraph.
269.7 	(e) The commissioner, in consultation with the commissioners of commerce and 
269.8 	health, may approve and implement programs for all-inclusive care for the elderly (PACE) 
269.9 	according to federal laws and regulations governing that program and state laws or rules 
269.10 	applicable to participating providers. The process for approval of these programs shall 
269.11 	begin only after the commissioner receives grant money in an amount sufficient to cover 
269.12 	the state share of the administrative and actuarial costs to implement the programs during 
269.13 	state fiscal years 2006 and 2007. Grant amounts for this purpose shall be deposited in an 
269.14 	account in the special revenue fund and are appropriated to the commissioner to be used 
269.15 	solely for the purpose of PACE administrative and actuarial costs. A PACE provider is 
269.16 	not required to be licensed or certified as a health plan company as defined in section 
269.17 	62Q.01, subdivision 4. Persons age 55 and older who have been screened by the county 
269.18 	and found to be eligible for services under the elderly waiver or community alternatives 
269.19 	for disabled individuals or who are already eligible for Medicaid but meet level of 
269.20 	care criteria for receipt of waiver services may choose to enroll in the PACE program. 
269.21 	Medicare and Medicaid services will be provided according to this subdivision and 
269.22 	federal Medicare and Medicaid requirements governing PACE providers and programs. 
269.23 	PACE enrollees will receive Medicaid home and community-based services through the 
269.24 	PACE provider as an alternative to services for which they would otherwise be eligible 
269.25 	through home and community-based waiver programs and Medicaid State Plan Services. 
269.26 	The commissioner shall establish Medicaid rates for PACE providers that do not exceed 
269.27 	costs that would have been incurred under fee-for-service or other relevant managed care 
269.28 	programs operated by the state.
269.29 	(f) The commissioner shall seek federal approval to expand the Minnesota disability 
269.30 	health options (MnDHO) program established under this subdivision in stages, first to 
269.31 	regional population centers outside the seven-county metro area and then to all areas 
269.32 	of the state. Until January 1, 2008July 1, 2009, expansion for MnDHO projects that 
269.33 	include home and community-based services is limited to the two projects and service 
269.34 	areas in effect on March 1, 2006.  Enrollment in integrated MnDHO programs that 
269.35 	include home and community-based services shall remain voluntary. Costs for home 
269.36 	and community-based services included under MnDHO must not exceed costs that 
270.1 	would have been incurred under the fee-for-service program. In developing program 
270.2 	specifications for expansion of integrated programs, the commissioner shall involve and 
270.3 	consult the state-level stakeholder group established in subdivision 28, paragraph (d), 
270.4 	including consultation on whether and how to include home and community-based waiver 
270.5 	programs. Plans for further expansion of MnDHO projects shall be presented to the chairs 
270.6 	of the house and senate committees with jurisdiction over health and human services 
270.7 	policy and finance by February 1, 2007.
270.8 	(g) Notwithstanding section 256B.0261, health plans providing services under this 
270.9 	section are responsible for home care targeted case management and relocation targeted 
270.10 	case management. Services must be provided according to the terms of the waivers and 
270.11 	contracts approved by the federal government.

270.12 	Sec. 61. [256C.261] SERVICES FOR DEAF-BLIND PERSONS.
270.13 	(a) The commissioner of human services shall combine the existing biennial base 
270.14 	level funding for deaf-blind services into a single grant program. At least 35 percent 
270.15 	of the total funding is awarded for services and other supports to deaf-blind children 
270.16 	and their families and at least 25 percent is awarded for services and other supports to 
270.17 	deaf-blind adults.
270.18 	The commissioner shall award grants for the purposes of: 
270.19 	(1) providing services and supports to individuals who are deaf-blind; and 
270.20 	(2) developing and providing training to counties and the network of senior citizen 
270.21 	service providers. The purpose of the training grants is to teach counties how to use 
270.22 	existing programs that capture federal financial participation to meet the needs of eligible 
270.23 	deaf-blind persons and to build capacity of senior service programs to meet the needs of 
270.24 	seniors with a dual sensory hearing and vision loss.
270.25 	(b) The commissioner may make grants:
270.26 	(1) for services and training provided by organizations; and
270.27 	(2) to develop and administer consumer-directed services.
270.28 	(c) Any entity that is able to satisfy the grant criteria is eligible to receive a grant 
270.29 	under paragraph (a).
270.30 	(d) Deaf-blind service providers may, but are not required to, provide intervenor 
270.31 	services as part of the service package provided with grant funds under this section.

270.32 	Sec. 62. Minnesota Statutes 2006, section 256I.04, subdivision 3, is amended to read:
270.33 		Subd. 3.Moratorium on the development of group residential housing beds. (a) 
270.34 	County agencies shall not enter into agreements for new group residential housing beds 
271.1 	with total rates in excess of the MSA equivalent rate except: (1) for group residential 
271.2 	housing establishments licensed under Minnesota Rules, parts 9525.0215 to 9525.0355, 
271.3 	provided the facility is needed to meet the census reduction targets for persons with 
271.4 	developmental disabilities at regional treatment centers; (2) to ensure compliance with 
271.5 	the federal Omnibus Budget Reconciliation Act alternative disposition plan requirements 
271.6 	for inappropriately placed persons with developmental disabilities or mental illness; 
271.7 	(3) up to 80 beds in a single, specialized facility located in Hennepin County that will 
271.8 	provide housing for chronic inebriates who are repetitive users of detoxification centers 
271.9 	and are refused placement in emergency shelters because of their state of intoxication, 
271.10 	and planning for the specialized facility must have been initiated before July 1, 1991, in 
271.11 	anticipation of receiving a grant from the Housing Finance Agency under section 462A.05, 
271.12 	subdivision 20a, paragraph (b); (4) notwithstanding the provisions of subdivision 2a, for 
271.13 	up to 190 supportive housing units in Anoka, Dakota, Hennepin, or Ramsey County 
271.14 	for homeless adults with a mental illness, a history of substance abuse, or human 
271.15 	immunodeficiency virus or acquired immunodeficiency syndrome. For purposes of this 
271.16 	section, "homeless adult" means a person who is living on the street or in a shelter or 
271.17 	discharged from a regional treatment center, community hospital, or residential treatment 
271.18 	program and has no appropriate housing available and lacks the resources and support 
271.19 	necessary to access appropriate housing. At least 70 percent of the supportive housing 
271.20 	units must serve homeless adults with mental illness, substance abuse problems, or human 
271.21 	immunodeficiency virus or acquired immunodeficiency syndrome who are about to be 
271.22 	or, within the previous six months, has been discharged from a regional treatment center, 
271.23 	or a state-contracted psychiatric bed in a community hospital, or a residential mental 
271.24 	health or chemical dependency treatment program. If a person meets the requirements of 
271.25 	subdivision 1, paragraph (a), and receives a federal or state housing subsidy, the group 
271.26 	residential housing rate for that person is limited to the supplementary rate under section 
271.27 	256I.05, subdivision 1a, and is determined by subtracting the amount of the person's 
271.28 	countable income that exceeds the MSA equivalent rate from the group residential housing 
271.29 	supplementary rate. A resident in a demonstration project site who no longer participates 
271.30 	in the demonstration program shall retain eligibility for a group residential housing 
271.31 	payment in an amount determined under section 256I.06, subdivision 8, using the MSA 
271.32 	equivalent rate. Service funding under section 256I.05, subdivision 1a, will end June 30, 
271.33 	1997, if federal matching funds are available and the services can be provided through a 
271.34 	managed care entity. If federal matching funds are not available, then service funding will 
271.35 	continue under section 256I.05, subdivision 1a; or (6) (5) for group residential housing 
271.36 	beds in settings meeting the requirements of subdivision 2a, clauses (1) and (3), which 
272.1 	are used exclusively for recipients receiving home and community-based waiver services 
272.2 	under sections 256B.0915, 256B.092, subdivision 5, 256B.093, and 256B.49, and who 
272.3 	resided in a nursing facility for the six months immediately prior to the month of entry 
272.4 	into the group residential housing setting. The group residential housing rate for these 
272.5 	beds must be set so that the monthly group residential housing payment for an individual 
272.6 	occupying the bed when combined with the nonfederal share of services delivered under 
272.7 	the waiver for that person does not exceed the nonfederal share of the monthly medical 
272.8 	assistance payment made for the person to the nursing facility in which the person resided 
272.9 	prior to entry into the group residential housing establishment. The rate may not exceed 
272.10 	the MSA equivalent rate plus $426.37 for any case.; (6) for an additional two beds, 
272.11 	resulting in a total of 32 beds, for a facility located in Hennepin County providing services 
272.12 	for recovering and chemically dependent men that has had a group residential housing 
272.13 	contract with the county and has been licensed as a board and lodge facility with special 
272.14 	services since 1980; (7) for a group residential housing provider located in Stearns County 
272.15 	that operates a 40-bed facility, that received financing through the Minnesota Housing 
272.16 	Finance Agency Ending Long-Term Homelessness Initiative and serves chemically 
272.17 	dependent clientele, providing 24-hour-a-day supervision; (8) for a new 65-bed facility in 
272.18 	Crow Wing County that will serve chemically dependent persons, operated by a group 
272.19 	residential housing provider that currently operates a 304-bed facility in Minneapolis, and 
272.20 	a 44-bed facility in Duluth; (9) for a group residential housing provider that operates two 
272.21 	ten-bed facilities, one located in Hennepin County and one located in Ramsey County, 
272.22 	that provide community support and 24-hour-a-day supervision to serve the mental 
272.23 	health needs of individuals who have chronically lived unsheltered; and (10) for a group 
272.24 	residential facility in Hennepin County with a capacity of up to 48 beds that has been 
272.25 	licensed since 1978 as a board and lodging facility and that until August 1, 2007, operated 
272.26 	as a licensed chemical dependency treatment program.
272.27 	(b) A county agency may enter into a group residential housing agreement for beds 
272.28 	with rates in excess of the MSA equivalent rate in addition to those currently covered 
272.29 	under a group residential housing agreement if the additional beds are only a replacement 
272.30 	of beds with rates in excess of the MSA equivalent rate which have been made available 
272.31 	due to closure of a setting, a change of licensure or certification which removes the beds 
272.32 	from group residential housing payment, or as a result of the downsizing of a group 
272.33 	residential housing setting. The transfer of available beds from one county to another can 
272.34 	only occur by the agreement of both counties.

273.1 	Sec. 63. Minnesota Statutes 2006, section 256I.05, is amended by adding a subdivision 
273.2 	to read:
273.3 		Subd. 1h.Supplementary rate for certain facilities serving chemically 
273.4 	dependent males. Notwithstanding subdivisions 1a and 1c, beginning July 1, 2007, a 
273.5 	county agency shall negotiate a supplementary rate in addition to the rate specified in 
273.6 	subdivision 1, not to exceed $737.87 per month, including any legislatively authorized 
273.7 	inflationary adjustments, for a group residential housing provider that:
273.8 	(1) is located in Ramsey County and has had a group residential housing contract 
273.9 	with the county since 1982 and has been licensed as a board and lodge facility with special 
273.10 	services since 1979; and
273.11 	(2) serves recovering and chemically dependent males, providing 24-hour-a-day 
273.12 	supervision.

273.13 	Sec. 64. Minnesota Statutes 2006, section 256I.05, is amended by adding a subdivision 
273.14 	to read:
273.15 		Subd. 1i.Supplementary rate for certain facilities; Hennepin County.
 273.16 	Notwithstanding the provisions of subdivisions 1a and 1c, a county agency shall negotiate 
273.17 	a supplementary rate in addition to the rate specified in subdivision 1, not to exceed $700 
273.18 	per month, including any legislatively authorized inflationary adjustments, up to the 
273.19 	available appropriation, for a facility located in Hennepin County with a capacity of up to 
273.20 	48 beds that has been licensed since 1978 as a board and lodging facility and that until 
273.21 	August 1, 2007, operated as a licensed chemical dependency treatment program.

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

273.23 	Sec. 65. Minnesota Statutes 2006, section 256I.05, is amended by adding a subdivision 
273.24 	to read:
273.25 		Subd. 1j.Supplementary rate for certain facilities; Crow Wing County.
 273.26 	Notwithstanding the provisions of subdivisions 1a and 1c, beginning July 1, 2007, a 
273.27 	county agency shall negotiate a supplementary rate in addition to the rate specified in 
273.28 	subdivision 1, not to exceed $700 per month, including any legislatively authorized 
273.29 	inflationary adjustments, for a new 65-bed facility in Crow Wing County that will serve 
273.30 	chemically dependent persons operated by a group residential housing provider that 
273.31 	currently operates a 304-bed facility in Minneapolis and a 44-bed facility in Duluth which 
273.32 	opened in January of 2006.

274.1 	Sec. 66. Minnesota Statutes 2006, section 256I.05, is amended by adding a subdivision 
274.2 	to read:
274.3 		Subd. 1k.Supplementary rate for certain facilities; Stearns County.
 274.4 	Notwithstanding the provisions of this section, beginning July 1, 2007, a county agency 
274.5 	shall negotiate a supplementary service rate in addition to the rate specified in subdivision 
274.6 	1, not to exceed $700 per month, including any legislatively authorized inflationary 
274.7 	adjustments, for a group residential housing provider located in Stearns County that 
274.8 	operates a 40-bed facility, that received financing through the Minnesota Housing Finance 
274.9 	Agency Ending Long-Term Homelessness Initiative and serves chemically dependent 
274.10 	clientele, providing 24-hour-a-day supervision.

274.11 	Sec. 67. Minnesota Statutes 2006, section 256I.05, is amended by adding a subdivision 
274.12 	to read:
274.13 		Subd. 1l.Supplementary rate for certain facilities; St. Louis County.
 274.14 	Notwithstanding the provisions of this section, beginning July 1, 2007, a county agency 
274.15 	shall negotiate a supplementary service rate in addition to the rate specified in subdivision 
274.16 	1, not to exceed $700 per month, including any legislatively authorized inflationary 
274.17 	adjustments, for a group residential housing provider located in St. Louis County that 
274.18 	operates a 30-bed facility, that received financing through the Minnesota Housing Finance 
274.19 	Agency Ending Long-Term Homelessness Initiative and serves chemically dependent 
274.20 	clientele, providing 24-hour-a-day supervision. 

274.21 	Sec. 68. Minnesota Statutes 2006, section 256I.05, is amended by adding a subdivision 
274.22 	to read:
274.23 		Subd. 1m.Supplemental rate for certain facilities; Hennepin and Ramsey 
274.24 	Counties. (a) Notwithstanding the provisions of this section, beginning July 1, 2007, a 
274.25 	county agency shall negotiate a supplemental service rate in addition to the rate specified 
274.26 	in subdivision 1, not to exceed $700 per month or the existing monthly rate, whichever 
274.27 	is higher, including any legislatively authorized inflationary adjustments, for a group 
274.28 	residential housing provider that operates two ten-bed facilities, one located in Hennepin 
274.29 	County and one located in Ramsey County, which provide community support and serve 
274.30 	the mental health needs of individuals who have chronically lived unsheltered, providing 
274.31 	24-hour per day supervision.
274.32 	(b) An individual who has lived in one of the facilities under paragraph (a), who 
274.33 	is being transitioned to independent living as part of the program plan continues to be 
275.1 	eligible for group residential housing and the supplemental service rate negotiated with 
275.2 	the county under paragraph (a).

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

275.4 	Sec. 69. Laws 2006, chapter 282, article 20, section 37, is amended to read:
275.5 	Sec. 37. REPAYMENT DELAY.
 275.6 	(a) A county that overspent its allowed amounts in calendar year 2004 or 2005 under 
275.7 	the waivered services program for persons with developmental disabilities shall not be 
275.8 	required to pay back the amount of overspending until May 31, 2007. This section applies 
275.9 	to Fillmore, Steele, and St. Louis Counties.
275.10 	(b) Carver County is not required to pay back the amount of overspending under 
275.11 	the waivered services program for persons with developmental disabilities for calendar 
275.12 	years 2004 and 2005 until June 30, 2009.

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

275.14 	Sec. 70. ASSISTIVE TECHNOLOGY RECOMMENDATIONS.
 275.15 		Subdivision 1.Review. During the biennium ending June 30, 2009, the Council on 
275.16 	Disability shall facilitate a statewide review of the assistive technology needs of people 
275.17 	with disabling conditions, and seniors. The council shall identify community-based 
275.18 	service providers, state agencies, and other entities involved in providing assistive 
275.19 	technology supports.
275.20 		Subd. 2.Recommendations. The council shall present to the chairs of the house 
275.21 	and senate committees having jurisdiction over human services, by January 1, 2009, 
275.22 	recommendations, including proposed legislation creating a statewide comprehensive plan 
275.23 	to meet the assistive technology needs of people with disabling conditions and seniors. 
275.24 	The statewide plan must include steps to coordinate and streamline assistive technology 
275.25 	services.

275.26 	Sec. 71. PROVIDER RATE INCREASES.
 275.27 	(a) The commissioner of human services shall increase allocations, reimbursement 
275.28 	rates, or rate limits, as applicable, by  2.0 percent beginning October 1, 2007, and by 2.0 
275.29 	percent beginning July 1, 2008, effective for services rendered on or after those dates. 
275.30 	County contracts for services specified in this section must be amended to pass through 
275.31 	these rate adjustments within 60 days of the effective date of the increase and must be 
275.32 	retroactive from the effective date of the rate adjustment.
276.1 	(b) The annual rate increases described in this section must be provided to: 
276.2 	(1) home and community-based waivered services for persons with developmental 
276.3 	disabilities or related conditions, including consumer-directed community supports, under 
276.4 	Minnesota Statutes, section 256B.501; 
276.5 	(2) home and community-based waivered services for the elderly, including 
276.6 	consumer-directed community supports, under Minnesota Statutes, section 256B.0915; 
276.7 	(3) waivered services under community alternatives for disabled individuals, 
276.8 	including consumer-directed community supports, under Minnesota Statutes, section 
276.9 	256B.49; 
276.10 	(4) community alternative care waivered services, including consumer-directed 
276.11 	community supports, under Minnesota Statutes, section 256B.49; 
276.12 	(5) traumatic brain injury waivered services, including consumer-directed 
276.13 	community supports, under Minnesota Statutes, section 256B.49; 
276.14 	(6) nursing services and home health services under Minnesota Statutes, section 
276.15 	256B.0625, subdivision 6a; 
276.16 	(7) personal care services and qualified professional supervision of personal care 
276.17 	services under Minnesota Statutes, section 256B.0625, subdivision 19a; 
276.18 	(8) private duty nursing services under Minnesota Statutes, section 256B.0625, 
276.19 	subdivision 7; 
276.20 	(9) day training and habilitation services for adults with developmental disabilities 
276.21 	or related conditions under Minnesota Statutes, sections 252.40 to 252.46, including the 
276.22 	additional cost of rate adjustments on day training and habilitation services, provided as a 
276.23 	social service under Minnesota Statutes, section 256M.60; 
276.24 	(10) alternative care services under Minnesota Statutes, section 256B.0913; 
276.25 	(11) adult residential program grants under Minnesota Statutes, section 245.73;
276.26 	(12) children's community-based mental health services grants and adult community 
276.27 	support and case management services grants under Minnesota Rules, parts 9535.1700 
276.28 	to 9535.1760; 
276.29 	(13) the group residential housing supplementary service rate under Minnesota 
276.30 	Statutes, section 256I.05, subdivision 1a; 
276.31 	(14) adult mental health integrated fund grants under Minnesota Statutes, section 
276.32 	245.4661;
276.33 	(15) semi-independent living services (SILS) under Minnesota Statutes, section 
276.34 	252.275, including SILS funding under county social services grants formerly funded 
276.35 	under Minnesota Statutes, chapter 256I; 
277.1 	(16) community support services for deaf and hard-of-hearing adults with mental 
277.2 	illness who use or wish to use sign language as their primary means of communication 
277.3 	under Minnesota Statutes, section 256.01, subdivision 2; and deaf and hard-of-hearing 
277.4 	grants under Minnesota Statutes, sections 256C.233 and 256C.25; Laws 1985, chapter 9, 
277.5 	article 1; and Laws 1997, First Special Session chapter 5, section 20; 
277.6 	(17) living skills training programs for persons with intractable epilepsy who need 
277.7 	assistance in the transition to independent living under Laws 1988, chapter 689; 
277.8 	(18) physical therapy services under sections 256B.0625, subdivision 8, and 
277.9 	256D.03, subdivision 4; 
277.10 	(19) occupational therapy services under sections 256B.0625, subdivision 8a, and 
277.11 	256D.03, subdivision 4; 
277.12 	(20) speech-language therapy services under section 256D.03, subdivision 4, and 
277.13 	Minnesota Rules, part 9505.0390; 
277.14 	(21) respiratory therapy services under section 256D.03, subdivision 4, and 
277.15 	Minnesota Rules, part 9505.0295; 
277.16 	(22) adult rehabilitative mental health services under section 256B.0623;
277.17 	(23) children's therapeutic services and support services under section 256B.0943;
277.18 	(24) tier I chemical health services under Minnesota Statutes, chapter 254B;
277.19 	(25) consumer support grants under Minnesota Statutes, section 256.476;
277.20 	(26) family support grants under Minnesota Statutes, section 252.32; 
277.21 	(27) grants for case management services to persons with HIV or AIDS under 
277.22 	Minnesota Statutes, section 256.01, subdivision 19; and 
277.23 	(28) aging grants under Minnesota Statutes, sections 256.975 to 256.977, 256B.0917, 
277.24 	and 256B.0928.
277.25 	(c) For services funded through Minnesota disability health options, the rate 
277.26 	increases under this section apply to all medical assistance payments, including former 
277.27 	group residential housing supplementary rates under Minnesota Statutes, chapter 256I.
277.28 	(d) The commissioner may recoup payments made under this section from a provider 
277.29 	that does not comply with paragraphs (f) and (g).
277.30 	(e) A managed care plan receiving state payments for the services in this section 
277.31 	must include these increases in their payments to providers on a prospective basis, 
277.32 	effective on January 1 following the effective date of the rate increase.
277.33 	(f) Providers that receive a rate increase under this section shall use 75 percent of 
277.34 	the additional revenue to increase compensation-related costs for employees directly 
277.35 	employed by the program on or after the effective date of the rate adjustments, except: 
277.36 	(1) the administrator;
278.1 	(2) persons employed in the central office of a corporation or entity that has an 
278.2 	ownership interest in the provider or exercises control over the provider; and 
278.3 	(3) persons paid by the provider under a management contract.
278.4 	Compensation-related costs include: wages and salaries; FICA taxes, Medicare taxes, 
278.5 	state and federal unemployment taxes, and workers' compensation; and the employer's 
278.6 	share of health and dental insurance, life insurance, disability insurance, long-term care 
278.7 	insurance, uniform allowance, and pensions.
278.8 	(g) Two-thirds of the money available under paragraph (f) must be used for wage 
278.9 	increases for all employees directly employed by the provider on or after the effective 
278.10 	date of the rate adjustments, except those listed in paragraph (f), clauses (1) to (3). The 
278.11 	wage adjustment that employees receive under this paragraph must be paid as an equal 
278.12 	hourly percentage wage increase for all eligible employees. All wage increases under this 
278.13 	paragraph must be effective on the same date. This paragraph shall not apply to employees 
278.14 	covered by a collective bargaining agreement.
278.15 	(h) For public employees, the increase for wages and benefits for certain staff is 
278.16 	available and pay rates must be increased only to the extent that they comply with laws 
278.17 	governing public employees collective bargaining. Money received by a provider for pay 
278.18 	increases under this section may be used only for increases implemented on or after the 
278.19 	first day of the rate period in which the increase is available and must not be used for 
278.20 	increases implemented prior to that date. 
278.21 	(i) The commissioner shall amend state grant contracts that include direct 
278.22 	personnel-related grant expenditures to include the allocation for the portion of the contract 
278.23 	that is employee compensation related. Grant contracts for compensation-related services 
278.24 	must be amended to pass through these adjustments within 60 days of the effective date of 
278.25 	the increase and must be retroactive to the effective date of the rate adjustment.
278.26 	(j) The Board on Aging and its Area Agencies on Aging shall amend their 
278.27 	grants that include direct personnel-related grant expenditures to include the rate 
278.28 	adjustment for the portion of the grant that is employee compensation related. Grants 
278.29 	for compensation-related services must be amended to pass through these adjustments 
278.30 	within 60 days of the effective date of the increase and must be retroactive to the effective 
278.31 	date of the rate adjustment.
278.32 	(k) The calendar year 2008 rate for vendors reimbursed under Minnesota Statutes, 
278.33 	chapter 254B, shall be at least 2.0 percent above the rate in effect on January 1, 2007. The 
278.34 	calendar year 2009 rate shall be at least 2.0 percent above the rate in effect on January 
278.35 	1, 2008.
279.1 	(l) Providers that receive a rate adjustment under paragraph (a) that is subject to 
279.2 	paragraphs (f) and (g) shall provide to the commissioner, and those counties with whom 
279.3 	they have a contract, within six months after the effective date of each rate adjustment, a 
279.4 	letter, in a format specified by the commissioner, that provides assurances that the provider 
279.5 	has developed and implemented a compensation plan and complied with paragraphs (f) 
279.6 	and (g). The provider shall keep on file, and produce for the commissioner or county 
279.7 	upon request, its plan, which must specify:
279.8 	(1) an estimate of the amounts of money that must be used as specified in paragraphs 
279.9 	(f) and (g); and 
279.10 	(2) a detailed distribution plan specifying the allowable compensation-related and 
279.11 	wage increases the provider will implement to use the funds available in clause (1).
279.12 	(m) Within six months after the effective date of each rate adjustment, the provider 
279.13 	shall post this plan, excluding the information required in paragraph (l), clause (1), for 
279.14 	a period of at least six weeks in an area of the provider's operation to which all eligible 
279.15 	employees have access and provide instructions for employees who believe they have 
279.16 	not received the wage and other compensation-related increases specified in paragraph 
279.17 	(l), clause (2). Instructions must include a mailing address, e-mail address, and the 
279.18 	telephone number that may be used by the employee to contact the commissioner or the 
279.19 	commissioner's representative. Providers shall also make assurances to the commissioner 
279.20 	and counties with whom they have a contract that they have complied with the requirement 
279.21 	in this paragraph.

279.22 	Sec. 72. MINNESOTA RULES.
 279.23 	The Department of Administration shall publish adopted rules in the State Register 
279.24 	making the terminology changes specified in section 75 in Minnesota Rules. Upon 
279.25 	publication in the State Register, the terminology changes for Minnesota Rules are 
279.26 	adopted without further administrative action.

279.27 	Sec. 73. HOUSING WITH SERVICES AND HOME CARE PROVIDERS 
279.28 	STUDY; REPORT.
 279.29 	The commissioner of human services shall conduct a study of how the state of 
279.30 	Minnesota can most effectively assist persons age 65 and older in selecting long-term care 
279.31 	services that meet their needs, reflect their preferences, and enable them to maintain 
279.32 	financial self-sufficiency as long as possible. The study shall include surveys of both 
279.33 	consumers and providers of housing with services, assisted living, and in-home services, 
279.34 	as well as an evaluation of what role the long-term care consultation program under 
280.1 	Minnesota Statutes, section 256B.0911, does or could play in helping consumers to 
280.2 	evaluate their options. Upon request of the commissioner, providers covered by the 
280.3 	study shall provide data that the commissioner determines is reasonably necessary to 
280.4 	achieve study outcomes. The preliminary results of this study shall be reported to the 
280.5 	senate and house of representatives committees with jurisdiction over health and human 
280.6 	services policy and finance issues by February 15, 2008, with a final report completed 
280.7 	by December 15, 2008.

280.8 	Sec. 74. PROVIDER RATE INCREASE.
 280.9 	Effective July 1, 2007, a day training and habilitation provider in St. Louis County 
280.10 	providing services for up to 80 individuals shall have a reimbursement rate that equals 94 
280.11 	percent of 125 percent of the statewide median per diem.

280.12 	Sec. 75. REVISOR'S INSTRUCTION.
 280.13 	The revisor of statutes shall change the terms in column A to the terms in column B 
280.14 	wherever they appear in Minnesota Statutes:

280.15		Column A
		Column B
	
280.16
280.17
280.18
280.19
280.20		"Office of Ombudsman 
for Older Minnesotans" 
and "Office of the 
Ombudsman for Older 
Minnesotans"
		"Office of Ombudsman 
for Long-Term Care"
	
280.21
280.22		"ombudsman for older 
Minnesotans"
		"ombudsman for 
long-term care"

280.23 	Sec. 76. REPEALER.
 280.24 	Minnesota Statutes 2006, sections 252.21; 252.22; 252.23; 252.24; 252.25; 252.261; 
280.25 	252.275, subdivision 5; 256.9743; 256B.0913, subdivisions 5b, 5c, 5d, 5e, 5f, 5g, and 5h; 
280.26 	and 256B.441, subdivisions 12, 16, 21, 26, 28, 42, and 45, are repealed.

280.27 	ARTICLE 8
280.28 	MENTAL HEALTH

280.29 	Section 1. [16C.155] JANITORIAL CONTRACTS FOR REHABILITATION 
280.30 	PROGRAMS AND EXTENDED EMPLOYMENT PROVIDERS.
280.31 	The commissioner of administration shall ensure that a portion of all janitorial 
280.32 	services contracts be awarded by the state to rehabilitation programs and extended 
280.33 	employment providers listed under section 16C.15. The total value of the contracts under 
280.34 	this section must exceed 19 percent of the total value of janitorial services contracts 
281.1 	entered into in the previous fiscal year. The amount of each contract awarded under this 
281.2 	section may exceed the estimated fair market price for the same goods and services by 
281.3 	up to five percent.

281.4 	Sec. 2. Minnesota Statutes 2006, section 148C.11, subdivision 1, is amended to read:
281.5 		Subdivision 1.Other professionals. (a) Nothing in this chapter prevents members 
281.6 	of other professions or occupations from performing functions for which they are qualified 
281.7 	or licensed. This exception includes, but is not limited to: licensed physicians; registered 
281.8 	nurses; licensed practical nurses; licensed psychological practitioners; members of 
281.9 	the clergy; American Indian medicine men and women; licensed attorneys; probation 
281.10 	officers; licensed marriage and family therapists; licensed social workers; social workers 
281.11 	employed by city, county, or state agencies; licensed professional counselors; licensed 
281.12 	school counselors; registered occupational therapists or occupational therapy assistants; 
281.13 	city, county, or state employees when providing assessments or case management under 
281.14 	Minnesota Rules, chapter 9530; and until July 1, 2007 2009, individuals providing 
281.15 	integrated dual-diagnosis treatment in adult mental health rehabilitative programs certified 
281.16 	by the Department of Human Services under section 256B.0622 or 256B.0623.
281.17 	(b) Nothing in this chapter prohibits technicians and resident managers in programs 
281.18 	licensed by the Department of Human Services from discharging their duties as provided 
281.19 	in Minnesota Rules, chapter 9530.
281.20 	(c) Any person who is exempt under this subdivision but who elects to obtain a 
281.21 	license under this chapter is subject to this chapter to the same extent as other licensees. 
281.22 	The board shall issue a license without examination to an applicant who is licensed or 
281.23 	registered in a profession identified in paragraph (a) if the applicant:
281.24 	(1) shows evidence of current licensure or registration; and
281.25 	(2) has submitted to the board a plan for supervision during the first 2,000 hours of 
281.26 	professional practice or has submitted proof of supervised professional practice that is 
281.27 	acceptable to the board.
281.28 	(d) Any person who is exempt from licensure under this section must not use a 
281.29 	title incorporating the words "alcohol and drug counselor" or "licensed alcohol and drug 
281.30 	counselor" or otherwise hold themselves out to the public by any title or description 
281.31 	stating or implying that they are engaged in the practice of alcohol and drug counseling, 
281.32 	or that they are licensed to engage in the practice of alcohol and drug counseling unless 
281.33 	that person is also licensed as an alcohol and drug counselor. Persons engaged in the 
281.34 	practice of alcohol and drug counseling are not exempt from the board's jurisdiction 
281.35 	solely by the use of one of the above titles.

282.1 	Sec. 3. Minnesota Statutes 2006, section 245.462, subdivision 20, is amended to read:
282.2 		Subd. 20.Mental illness. (a) "Mental illness" means an organic disorder of the 
282.3 	brain or a clinically significant disorder of thought, mood, perception, orientation, 
282.4 	memory, or behavior that is listed in the clinical manual of the International Classification 
282.5 	of Diseases (ICD-9-CM), current edition, code range 290.0 to 302.99 or 306.0 to 316.0 
282.6 	or the corresponding code in the American Psychiatric Association's Diagnostic and 
282.7 	Statistical Manual of Mental Disorders (DSM-MD), current edition, Axes I, II, or III, and 
282.8 	that seriously limits a person's capacity to function in primary aspects of daily living such 
282.9 	as personal relations, living arrangements, work, and recreation. 
282.10 	(b) An "adult with acute mental illness" means an adult who has a mental illness that 
282.11 	is serious enough to require prompt intervention.
282.12 	(c) For purposes of case management and community support services, a "person 
282.13 	with serious and persistent mental illness" means an adult who has a mental illness and 
282.14 	meets at least one of the following criteria:
282.15 	(1) the adult has undergone two or more episodes of inpatient care for a mental 
282.16 	illness within the preceding 24 months;
282.17 	(2) the adult has experienced a continuous psychiatric hospitalization or residential 
282.18 	treatment exceeding six months' duration within the preceding 12 months;
282.19 	(3) the adult has been treated by a crisis team two or more times within the preceding 
282.20 	24 months;
282.21 	(4) the adult:
282.22 	(i) has a diagnosis of schizophrenia, bipolar disorder, major depression, or borderline 
282.23 	personality disorder;
282.24 	(ii) indicates a significant impairment in functioning; and
282.25 	(iii) has a written opinion from a mental health professional, in the last three years, 
282.26 	stating that the adult is reasonably likely to have future episodes requiring inpatient or 
282.27 	residential treatment, of a frequency described in clause (1) or (2), unless ongoing case 
282.28 	management or community support services are provided;
282.29 	(4) (5) the adult has, in the last three years, been committed by a court as a person 
282.30 	who is mentally ill under chapter 253B, or the adult's commitment has been stayed or 
282.31 	continued; or
282.32 	(5) (6) the adult (i) was eligible under clauses (1) to (4) (5), but the specified time 
282.33 	period has expired or the adult was eligible as a child under section 245.4871, subdivision 
282.34 	6; and (ii) has a written opinion from a mental health professional, in the last three years, 
282.35 	stating that the adult is reasonably likely to have future episodes requiring inpatient or 
283.1 	residential treatment, of a frequency described in clause (1) or (2), unless ongoing case 
283.2 	management or community support services are provided. 

283.3 	Sec. 4. Minnesota Statutes 2006, section 245.465, is amended by adding a subdivision 
283.4 	to read:
283.5 		Subd. 3.Responsibility not duplicated. For individuals who have health care 
283.6 	coverage, the county board is not responsible for providing mental health services which 
283.7 	are within the limits of the individual's health care coverage.

283.8 	Sec. 5. [245.4682] MENTAL HEALTH SERVICE DELIVERY AND FINANCE 
283.9 	REFORM.
283.10 		Subdivision 1.Policy. The commissioner of human services shall undertake a series 
283.11 	of reforms to address the underlying structural, financial, and organizational problems in 
283.12 	Minnesota's mental health system with the goal of improving the availability, quality, and 
283.13 	accountability of mental health care within the state.
283.14 		Subd. 2.General provisions. (a) In the design and implementation of reforms to 
283.15 	the mental health system, the commissioner shall:
283.16 	(1) consult with consumers, families, counties, tribes, advocates, providers, and 
283.17 	other stakeholders;
283.18 	(2) bring to the legislature, and the State Advisory Council on Mental Health, by 
283.19 	January 15, 2008, recommendations for legislation to update the role of counties and to 
283.20 	clarify the case management roles, functions, and decision-making authority of health 
283.21 	plans and counties, and to clarify county retention of the responsibility for the delivery of 
283.22 	social services as required under subdivision 3, paragraph (a);
283.23 	(3) withhold implementation of any recommended changes in case management 
283.24 	roles, functions, and decision-making authority until after the release of the report due 
283.25 	January 15, 2008;
283.26 	(4) ensure continuity of care for persons affected by these reforms including 
283.27 	ensuring client choice of provider by requiring broad provider networks and developing 
283.28 	mechanisms to facilitate a smooth transition of service responsibilities;
283.29 	(5) provide accountability for the efficient and effective use of public and private 
283.30 	resources in achieving positive outcomes for consumers;
283.31 	(6) ensure client access to applicable protections and appeals; and
283.32 	(7) make budget transfers necessary to implement the reallocation of services and 
283.33 	client responsibilities between counties and health care programs that do not increase the 
283.34 	state and county costs and efficiently allocate state funds.
284.1 	(b) When making transfers under paragraph (a) necessary to implement movement 
284.2 	of responsibility for clients and services between counties and health care programs, 
284.3 	the commissioner, in consultation with counties, shall ensure that any transfer of state 
284.4 	grants to health care programs, including the value of case management transfer grants 
284.5 	under section 256B.0625, subdivision 20, does not exceed the value of the services being 
284.6 	transferred for the latest 12-month period for which data is available. The commissioner 
284.7 	may make quarterly adjustments based on the availability of additional data during the 
284.8 	first four quarters after the transfers first occur. If case management transfer grants under 
284.9 	section 256B.0625, subdivision 20, are repealed and the value, based on the last year prior 
284.10 	to repeal, exceeds the value of the services being transferred, the difference becomes an 
284.11 	ongoing part of each county's adult and children's mental health grants under sections 
284.12 	245.4661, 245.4889, and 256E.12.
284.13 	(c) This appropriation is not authorized to be expended after December 31, 2010, 
284.14 	unless approved by the legislature.
284.15 		Subd. 3.Projects for coordination of care. (a) Consistent with section 256B.69 
284.16 	and chapters 256D and 256L, the commissioner is authorized to solicit, approve, and 
284.17 	implement up to three projects to demonstrate the integration of physical and mental 
284.18 	health services within prepaid health plans and their coordination with social services. 
284.19 	The commissioner shall require that each project be based on locally defined partnerships 
284.20 	that include at least one health maintenance organization, community integrated service 
284.21 	network, or accountable provider network authorized and operating under chapter 62D, 
284.22 	62N, or 62T, or county-based purchasing entity under section 256B.692 that is eligible to 
284.23 	contract with the commissioner as a prepaid health plan, and the county or counties within 
284.24 	the service area. Counties shall retain responsibility and authority for social services in 
284.25 	these locally defined partnerships.
284.26 	(b) The commissioner, in consultation with consumers, families, and their 
284.27 	representatives, shall:
284.28 	(1) determine criteria for approving the projects and use those criteria to solicit 
284.29 	proposals for preferred integrated networks. The commissioner must develop criteria to 
284.30 	evaluate the partnership proposed by the county and prepaid health plan to coordinate 
284.31 	access and delivery of services. The proposal must at a minimum address how the 
284.32 	partnership will coordinate the provision of:
284.33 	(i) client outreach and identification of health and social service needs paired with 
284.34 	expedited access to appropriate resources;
284.35 	(ii) activities to maintain continuity of health care coverage;
284.36 	(iii) children's residential mental health treatment and treatment foster care;
285.1 	(iv) court-ordered assessments and treatments;
285.2 	(v) prepetition screening and commitments under chapter 253B;
285.3 	(vi) assessment and treatment of children identified through mental health screening 
285.4 	of child welfare and juvenile corrections cases;
285.5 	(vii) home and community-based waiver services;
285.6 	(viii) assistance with finding and maintaining employment;
285.7 	(ix) housing; and
285.8 	(x) transportation;
285.9 	(2) determine specifications for contracts with prepaid health plans to improve the 
285.10 	plan's ability to serve persons with mental health conditions, including specifications 
285.11 	addressing:
285.12 	(i) early identification and intervention of physical and behavioral health problems;
285.13 	(ii) communication between the enrollee and the health plan;
285.14 	(iii) facilitation of enrollment for persons who are also eligible for a Medicare 
285.15 	special needs plan offered by the health plan;
285.16 	(iv) risk screening procedures;
285.17 	(v) health care coordination;
285.18 	(vi) member services and access to applicable protections and appeal processes;
285.19 	(vii) specialty provider networks;
285.20 	(viii) transportation services;
285.21 	(ix) treatment planning; and
285.22 	(x) administrative simplification for providers;
285.23 	(3) begin implementation of the projects no earlier than January 1, 2009, with not 
285.24 	more than 40 percent of the statewide population  included during calendar year 2009 and 
285.25 	additional counties included in subsequent years;
285.26 	(4) waive any administrative rule not consistent with the implementation of the 
285.27 	projects;
285.28 	(5) allow potential bidders at least 90 days to respond to the request for proposals; 
285.29 	and
285.30 	(6) conduct an independent evaluation to determine if mental health outcomes have 
285.31 	improved in that county or counties according to measurable standards designed in 
285.32 	consultation with the advisory body established under this subdivision and reviewed by 
285.33 	the State Advisory Council on Mental Health.
285.34 	(c) Notwithstanding any statute or administrative rule to the contrary, the 
285.35 	commissioner may enroll all persons eligible for medical assistance with serious mental 
286.1 	illness or emotional disturbance in the prepaid plan of their choice within the project 
286.2 	service area unless:
286.3 	(1) the individual is eligible for home and community-based services for persons 
286.4 	with developmental disabilities and related conditions under section 256B.092; or
286.5 	(2) the individual has a basis for exclusion from the prepaid plan under section 
286.6 	256B.69, subdivision 4, other than disability, mental illness, or emotional disturbance.
286.7 	(d) The commissioner shall involve organizations representing persons with mental 
286.8 	illness and their families in the development and distribution of information used to 
286.9 	educate potential enrollees regarding their options for health care and mental health 
286.10 	service delivery under this subdivision.
286.11 	(e) If the person described in paragraph (c) does not elect to remain in fee-for-service 
286.12 	medical assistance, or declines to choose a plan, the commissioner may preferentially 
286.13 	assign that person to the prepaid plan participating in the preferred integrated network. 
286.14 	The commissioner shall implement the enrollment changes within a project's service area 
286.15 	on the timeline specified in that project's approved application.
286.16 	(f) A person enrolled in a prepaid health plan under paragraphs (c) and (d) may 
286.17 	disenroll from the plan at any time.
286.18 	(g) The commissioner, in consultation with consumers, families, and their 
286.19 	representatives, shall evaluate the projects begun in 2009, and shall refine the design of the 
286.20 	service integration projects before expanding the projects. The commissioner shall report 
286.21 	to the chairs of the legislative committees with jurisdiction over mental health services 
286.22 	by March 1, 2008, on plans for evaluation of preferred integrated networks established 
286.23 	under this subdivision.
286.24 	(h) The commissioner shall apply for any federal waivers necessary to implement 
286.25 	these changes.
286.26 	(i) Payment for Medicaid service providers under this subdivision for the months of 
286.27 	May and June will be made no earlier than July 1 of the same calendar year.

286.28 	Sec. 6. Minnesota Statutes 2006, section 245.4712, subdivision 1, is amended to read:
286.29 		Subdivision 1.Availability of community support services. (a) County boards 
286.30 	must provide or contract for sufficient community support services within the county to 
286.31 	meet the needs of adults with serious and persistent mental illness who are residents of the 
286.32 	county. Adults may be required to pay a fee according to section 245.481. The community 
286.33 	support services program must be designed to improve the ability of adults with serious 
286.34 	and persistent mental illness to: 
286.35 	(1) work in a regular or supported work environment;
287.1 	(2) handle basic activities of daily living;
287.2 	(3) participate in leisure time activities;
287.3 	(4) set goals and plans; and
287.4 	(5) obtain and maintain appropriate living arrangements.
287.5 	The community support services program must also be designed to reduce the 
287.6 	need for and use of more intensive, costly, or restrictive placements both in number of 
287.7 	admissions and length of stay.
287.8 	(b) Community support services are those services that are supportive in nature and 
287.9 	not necessarily treatment oriented, and include:
287.10 	(1) conducting outreach activities such as home visits, health and wellness checks, 
287.11 	and problem solving;
287.12 	(2) connecting people to resources to meet their basic needs;
287.13 	(3) finding, securing, and supporting people in their housing;
287.14 	(4) attaining and maintaining health insurance benefits;
287.15 	(5) assisting with job applications, finding and maintaining employment, and 
287.16 	securing a stable financial situation;
287.17 	(6) fostering social support, including support groups, mentoring, peer support, and 
287.18 	other efforts to prevent isolation and promote recovery; and
287.19 	(7) educating about mental illness, treatment, and recovery.
287.20 	(c) Community support services shall use all available funding streams. The county 
287.21 	shall maintain the level of expenditures for this program, as required under section 
287.22 	245.4835. County boards must continue to provide funds for those services not covered 
287.23 	by other funding streams and to maintain an infrastructure to carry out these services.
287.24 	(d) The commissioner shall collect data on community support services programs, 
287.25 	including, but not limited to, demographic information such as age, sex, race, the number 
287.26 	of people served, and information related to housing, employment, hospitalization, 
287.27 	symptoms, and satisfaction with services.

287.28 	Sec. 7. Minnesota Statutes 2006, section 245.4874, is amended to read:
287.29 	245.4874 DUTIES OF COUNTY BOARD.
287.30 		Subdivision 1.Duties of the county board. (a) The county board must:
287.31 	(1) develop a system of affordable and locally available children's mental health 
287.32 	services according to sections 245.487 to 245.4887;
287.33 	(2) establish a mechanism providing for interagency coordination as specified in 
287.34 	section 245.4875, subdivision 6;
288.1 	(3) consider the assessment of unmet needs in the county as reported by the local 
288.2 	children's mental health advisory council under section 245.4875, subdivision 5, paragraph 
288.3 	(b), clause (3). The county shall provide, upon request of the local children's mental health 
288.4 	advisory council, readily available data to assist in the determination of unmet needs;
288.5 	(4) assure that parents and providers in the county receive information about how to 
288.6 	gain access to services provided according to sections 245.487 to 245.4887;
288.7 	(5) coordinate the delivery of children's mental health services with services 
288.8 	provided by social services, education, corrections, health, and vocational agencies to 
288.9 	improve the availability of mental health services to children and the cost-effectiveness of 
288.10 	their delivery;
288.11 	(6) assure that mental health services delivered according to sections 245.487
288.12 	to 245.4887 are delivered expeditiously and are appropriate to the child's diagnostic 
288.13 	assessment and individual treatment plan;
288.14 	(7) provide the community with information about predictors and symptoms of 
288.15 	emotional disturbances and how to access children's mental health services according to 
288.16 	sections 245.4877 and 245.4878;
288.17 	(8) provide for case management services to each child with severe emotional 
288.18 	disturbance according to sections 245.486; 245.4871, subdivisions 3 and 4; and 245.4881, 
288.19 	subdivisions 1, 3, and 5;
288.20 	(9) provide for screening of each child under section 245.4885 upon admission 
288.21 	to a residential treatment facility, acute care hospital inpatient treatment, or informal 
288.22 	admission to a regional treatment center;
288.23 	(10) prudently administer grants and purchase-of-service contracts that the county 
288.24 	board determines are necessary to fulfill its responsibilities under sections 245.487 to 
288.25 	245.4887;
288.26 	(11) assure that mental health professionals, mental health practitioners, and case 
288.27 	managers employed by or under contract to the county to provide mental health services 
288.28 	are qualified under section 245.4871;
288.29 	(12) assure that children's mental health services are coordinated with adult mental 
288.30 	health services specified in sections 245.461 to 245.486 so that a continuum of mental 
288.31 	health services is available to serve persons with mental illness, regardless of the person's 
288.32 	age;
288.33 	(13) assure that culturally informedcompetent mental health consultants are used as 
288.34 	necessary to assist the county board in assessing and providing appropriate treatment for 
288.35 	children of cultural or racial minority heritage; and
289.1 	(14) consistent with section 245.486, arrange for or provide a children's mental 
289.2 	health screening to a child receiving child protective services or a child in out-of-home 
289.3 	placement, a child for whom parental rights have been terminated, a child found to be 
289.4 	delinquent, and a child found to have committed a juvenile petty offense for the third or 
289.5 	subsequent time, unless a screening has been performed within the previous 180 days, or 
289.6 	the child is currently under the care of a mental health professional. The court or county 
289.7 	agency must notify a parent or guardian whose parental rights have not been terminated of 
289.8 	the potential mental health screening and the option to prevent the screening by notifying 
289.9 	the court or county agency in writing. The screening shall be conducted with a screening 
289.10 	instrument approved by the commissioner of human services according to criteria that 
289.11 	are updated and issued annually to ensure that approved screening instruments are valid 
289.12 	and useful for child welfare and juvenile justice populations, and shall be conducted 
289.13 	by a mental health practitioner as defined in section 245.4871, subdivision 26, or a 
289.14 	probation officer or local social services agency staff person who is trained in the use of 
289.15 	the screening instrument. Training in the use of the instrument shall include training in the 
289.16 	administration of the instrument, the interpretation of its validity given the child's current 
289.17 	circumstances, the state and federal data practices laws and confidentiality standards, the 
289.18 	parental consent requirement, and providing respect for families and cultural values. 
289.19 	If the screen indicates a need for assessment, the child's family, or if the family lacks 
289.20 	mental health insurance, the local social services agency, in consultation with the child's 
289.21 	family, shall have conducted a diagnostic assessment, including a functional assessment, 
289.22 	as defined in section 245.4871. The administration of the screening shall safeguard the 
289.23 	privacy of children receiving the screening and their families and shall comply with the 
289.24 	Minnesota Government Data Practices Act, chapter 13, and the federal Health Insurance 
289.25 	Portability and Accountability Act of 1996, Public Law 104-191. Screening results shall be 
289.26 	considered private data and the commissioner shall not collect individual screening results.
289.27 	(b) When the county board refers clients to providers of children's therapeutic 
289.28 	services and supports under section 256B.0943, the county board must clearly identify 
289.29 	the desired services components not covered under section 256B.0943 and identify the 
289.30 	reimbursement source for those requested services, the method of payment, and the 
289.31 	payment rate to the provider.
289.32 		Subd. 2.Responsibility not duplicated. For individuals who have health care 
289.33 	coverage, the county board is not responsible for providing mental health services which 
289.34 	are within the limits of the individual's health care coverage.

289.35 	Sec. 8. [245.4889] CHILDREN'S MENTAL HEALTH GRANTS.
290.1 		Subdivision 1.Establishment and authority. (a) The commissioner is authorized 
290.2 	to make grants from available appropriations to assist: 
290.3 	(1) counties;
290.4 	(2) Indian tribes;
290.5 	(3) children's collaboratives under section 124D.23 or 245.493; or
290.6 	(4) mental health service providers
290.7 	for providing services to children with emotional disturbances as defined in section 
290.8 	245.4871, subdivision 15, and their families. The commissioner may also authorize 
290.9 	grants to young adults meeting the criteria for transition services in section 245.4875, 
290.10 	subdivision 8, and their families. 
290.11 	(b) Services under paragraph (a) must be designed to help each child to function and 
290.12 	remain with the child's family in the community and delivered consistent with the child's 
290.13 	treatment plan. Transition services to eligible young adults under paragraph (a) must be 
290.14 	designed to foster independent living in the community.
290.15 		Subd. 2.Grant application and reporting requirements. To apply for a grant, 
290.16 	an applicant organization shall submit an application and budget for the use of the 
290.17 	money in the form specified by the commissioner. The commissioner shall make grants 
290.18 	only to entities whose applications and budgets are approved by the commissioner. In 
290.19 	awarding grants, the commissioner shall give priority to applications that indicate plans 
290.20 	to collaborate in the development, funding, and delivery of services with other agencies 
290.21 	in the local system of care. The commissioner shall specify requirements for reports, 
290.22 	including quarterly fiscal reports under section 256.01, subdivision 2, paragraph (q). The 
290.23 	commissioner shall require collection of data and periodic reports that the commissioner 
290.24 	deems necessary to demonstrate the effectiveness of each service.

290.25 	Sec. 9. Minnesota Statutes 2006, section 245.50, subdivision 5, is amended to read:
290.26 		Subd. 5.Special contracts; bordering states. (a) An individual who is detained, 
290.27 	committed, or placed on an involuntary basis under chapter 253B may be confined or 
290.28 	treated in a bordering state pursuant to a contract under this section. An individual who is 
290.29 	detained, committed, or placed on an involuntary basis under the civil law of a bordering 
290.30 	state may be confined or treated in Minnesota pursuant to a contract under this section. A 
290.31 	peace or health officer who is acting under the authority of the sending state may transport 
290.32 	an individual to a receiving agency that provides services pursuant to a contract under 
290.33 	this section and may transport the individual back to the sending state under the laws 
290.34 	of the sending state. Court orders valid under the law of the sending state are granted 
290.35 	recognition and reciprocity in the receiving state for individuals covered by a contract 
291.1 	under this section to the extent that the court orders relate to confinement for treatment 
291.2 	or care of mental illness or chemical dependency. Such treatment or care may address 
291.3 	other conditions that may be co-occurring with the mental illness or chemical dependency. 
291.4 	These court orders are not subject to legal challenge in the courts of the receiving state. 
291.5 	Individuals who are detained, committed, or placed under the law of a sending state and 
291.6 	who are transferred to a receiving state under this section continue to be in the legal 
291.7 	custody of the authority responsible for them under the law of the sending state. Except 
291.8 	in emergencies, those individuals may not be transferred, removed, or furloughed from 
291.9 	a receiving agency without the specific approval of the authority responsible for them 
291.10 	under the law of the sending state.
291.11 	(b) While in the receiving state pursuant to a contract under this section, an 
291.12 	individual shall be subject to the sending state's laws and rules relating to length of 
291.13 	confinement, reexaminations, and extensions of confinement. No individual may be sent 
291.14 	to another state pursuant to a contract under this section until the receiving state has 
291.15 	enacted a law recognizing the validity and applicability of this section.
291.16 	(c) If an individual receiving services pursuant to a contract under this section leaves 
291.17 	the receiving agency without permission and the individual is subject to involuntary 
291.18 	confinement under the law of the sending state, the receiving agency shall use all 
291.19 	reasonable means to return the individual to the receiving agency. The receiving agency 
291.20 	shall immediately report the absence to the sending agency. The receiving state has the 
291.21 	primary responsibility for, and the authority to direct, the return of these individuals 
291.22 	within its borders and is liable for the cost of the action to the extent that it would be 
291.23 	liable for costs of its own resident.
291.24 	(d) Responsibility for payment for the cost of care remains with the sending agency.
291.25 	(e) This subdivision also applies to county contracts under subdivision 2 which 
291.26 	include emergency care and treatment provided to a county resident in a bordering state.
291.27 	(f) If a Minnesota resident is admitted to a facility in a bordering state under this 
291.28 	chapter, a physician, licensed psychologist who has a doctoral degree in psychology, or 
291.29 	an advance practice registered nurse certified in mental health, who is licensed in the 
291.30 	bordering state, may act as an examiner under sections 253B.07, 253B.08, 253B.092, 
291.31 	253B.12, and 253B.17 subject to the same requirements and limitations in section 
291.32 	253B.02, subdivision 7.

291.33 	Sec. 10. Minnesota Statutes 2006, section 245.98, subdivision 2, is amended to read:
291.34 		Subd. 2.Program. The commissioner of human services shall establish a program 
291.35 	for the treatment of compulsive gamblers. The commissioner may contract with an 
292.1 	entity with expertise regarding the treatment of compulsive gambling to operate the 
292.2 	program. The program may include the establishment of a statewide toll-free number, 
292.3 	resource library, public education programs; regional in-service training programs and 
292.4 	conferences for health care professionals, educators, treatment providers, employee 
292.5 	assistance programs, and criminal justice representatives; and the establishment of 
292.6 	certification standards for programs and service providers. The commissioner may enter 
292.7 	into agreements with other entities and may employ or contract with consultants to 
292.8 	facilitate the provision of these services or the training of individuals to qualify them to 
292.9 	provide these services. The program may also include inpatient and outpatient treatment 
292.10 	and rehabilitation services and for residents in different settings, including a temporary or 
292.11 	permanent residential setting for mental health or chemical dependency, and individuals 
292.12 	in jails or correctional facilities. The program may also include research studies. The 
292.13 	research studies must include baseline and prevalence studies for adolescents and adults to 
292.14 	identify those at the highest risk. The program must be approved by the commissioner 
292.15 	before it is established.

292.16 	Sec. 11. [245A.175] MENTAL HEALTH TRAINING REQUIREMENT.
292.17 	Prior to a nonemergency placement of a child in a foster care home, the child 
292.18 	foster care provider, licensed after July 1, 2007, must complete two hours of training 
292.19 	that addresses the causes, symptoms, and key warning signs of mental health disorders; 
292.20 	cultural considerations; and effective approaches for dealing with a child's behaviors. At 
292.21 	least one hour of the annual 12-hour training requirement for foster parents must be on 
292.22 	children's mental health issues and treatment. Training curriculum shall be approved 
292.23 	by the commissioner of human services.

292.24 	Sec. 12. Minnesota Statutes 2006, section 246.54, subdivision 1, is amended to read:
292.25 		Subdivision 1.County portion for cost of care. (a) Except for chemical 
292.26 	dependency services provided under sections 254B.01 to 254B.09, the client's county 
292.27 	shall pay to the state of Minnesota a portion of the cost of care provided in a regional 
292.28 	treatment center or a state nursing facility to a client legally settled in that county. A 
292.29 	county's payment shall be made from the county's own sources of revenue and payments 
292.30 	shall be paid as follows: payments to the state from the county shall equal 20 percenta 
292.31 	percentage of the cost of care, as determined by the commissioner, for each day, or the 
292.32 	portion thereof, that the client spends at a regional treatment center or a state nursing 
292.33 	facility. according to the following schedule:
292.34 	(1) zero percent for the first 30 days;
293.1 	(2) 20 percent for days 31 to 60; and
293.2 	(3) 50 percent for any days over 60.
293.3 	(b) The increase in the county portion for cost of care under paragraph (a), clause 
293.4 	(3), shall be imposed when the treatment facility has determined that it is clinically 
293.5 	appropriate for the client to be discharged.
293.6 	(c) If payments received by the state under sections 246.50 to 246.53 exceed 80 
293.7 	percent of the cost of care for days 31 to 60, or 50 percent for days over 60, the county 
293.8 	shall be responsible for paying the state only the remaining amount. The county shall 
293.9 	not be entitled to reimbursement from the client, the client's estate, or from the client's 
293.10 	relatives, except as provided in section 246.53. No such payments shall be made for any 
293.11 	client who was last committed prior to July 1, 1947.

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

293.13 	Sec. 13. Minnesota Statutes 2006, section 246.54, subdivision 2, is amended to read:
293.14 		Subd. 2.Exceptions. (a) Subdivision 1 does not apply to services provided at the 
293.15 	Minnesota Security Hospital, the Minnesota sex offender program, or the Minnesota 
293.16 	extended treatment options program. For services at these facilities, a county's payment 
293.17 	shall be made from the county's own sources of revenue and payments shall be paid as 
293.18 	follows: payments to the state from the county shall equal ten percent of the cost of care, 
293.19 	as determined by the commissioner, for each day, or the portion thereof, that the client 
293.20 	spends at the facility. If payments received by the state under sections 246.50 to 246.53
293.21 	exceed 90 percent of the cost of care, the county shall be responsible for paying the state 
293.22 	only the remaining amount. The county shall not be entitled to reimbursement from the 
293.23 	client, the client's estate, or from the client's relatives, except as provided in section 246.53. 
293.24 	(b) Regardless of the facility to which the client is committed, subdivision 1 does not 
293.25 	apply to the following individuals:
293.26 	(1) clients who are committed as mentally ill and dangerous under section 253B.02, 
293.27 	subdivision 17;
293.28 	(2) clients who are committed as sexual psychopathic personalities under section 
293.29 	253B.02, subdivision 18b; and
293.30 	(3) clients who are committed as sexually dangerous persons under section 253B.02, 
293.31 	subdivision 18c.
293.32 	For each of the individuals in clauses (1) to (3), the payment by the county to the state 
293.33 	shall equal ten percent of the cost of care for each day as determined by the commissioner.

294.1 	Sec. 14. Minnesota Statutes 2006, section 253B.185, is amended by adding a 
294.2 	subdivision to read:
294.3 		Subd. 8.Petition and report required. (a) Within 120 days of receipt of a 
294.4 	preliminary determination from a court under section 609.1351, or a referral from the 
294.5 	commissioner of corrections pursuant to section 244.05, subdivision 7, a county attorney 
294.6 	shall determine whether good cause under this section exists to file a petition, and if good 
294.7 	cause exists, the county attorney or designee shall file the petition with the court.
294.8 	(b) Failure to meet the requirements of paragraph (a) does not bar filing a petition 
294.9 	under subdivision 1 any time the county attorney determines pursuant to subdivision 1 
294.10 	that good cause for such a petition exists.
294.11 	(c) By February 1 of each year, the commissioner of human services shall annually 
294.12 	report to the respective chairs of the divisions or committees of the senate and house 
294.13 	of representatives that oversee human services finance regarding compliance with this 
294.14 	subdivision.

294.15 	Sec. 15. [254A.25] DUTIES OF COMMISSIONER RELATED TO CHEMICAL 
294.16 	HEALTH.
294.17 	The commissioner shall develop a directory that identifies key characteristics of 
294.18 	each licensed chemical dependency treatment program.

294.19 	Sec. 16. [256B.0615] MENTAL HEALTH CERTIFIED PEER SPECIALIST.
294.20 		Subdivision 1.Scope. Medical assistance covers mental health certified peers 
294.21 	specialists services, as established in subdivision 2, subject to federal approval, if provided 
294.22 	to recipients who are eligible for services under sections 256B.0622 and 256B.0623, 
294.23 	and are provided by a certified peer specialist who has completed the training under 
294.24 	subdivision 5.
294.25 		Subd. 2.Establishment. The commissioner of human services shall establish a 
294.26 	certified peer specialists program model, which:
294.27 	(1) provides nonclinical peer support counseling by certified peer specialists;
294.28 	(2) provides a part of a wraparound continuum of services in conjunction with 
294.29 	other community mental health services;
294.30 	(3) is individualized to the consumer; and
294.31 	(4) promotes socialization, recovery, self-sufficiency, self-advocacy, development of 
294.32 	natural supports, and maintenance of skills learned in other support services.
295.1 		Subd. 3.Eligibility. Peer support services may be made available to consumers 
295.2 	of the intensive rehabilitative mental health services under section 256B.0622 and adult 
295.3 	rehabilitative mental health services under section 256B.0623.
295.4 		Subd. 4.Peer support specialist program providers. The commissioner shall 
295.5 	develop a process to certify peer support specialist programs, in accordance with the 
295.6 	federal guidelines, in order for the program to bill for reimbursable services. Peer support 
295.7 	programs may be freestanding or within existing mental health community provider 
295.8 	centers.
295.9 		Subd. 5.Certified peer specialist training and certification. The commissioner 
295.10 	of human services shall develop a training and certification process for certified peer 
295.11 	specialists, who must be at least 21 years of age and have a high school diploma or its 
295.12 	equivalent. The candidates must have had a primary diagnosis of mental illness, be a 
295.13 	current or former consumer of mental health services, and must demonstrate leadership 
295.14 	and advocacy skills and a strong dedication to recovery. The training curriculum must 
295.15 	teach participating consumers specific skills relevant to providing peer support to other 
295.16 	consumers. In addition to initial training and certification, the commissioner shall develop 
295.17 	ongoing continuing educational workshops on pertinent issues related to peer support 
295.18 	counseling.

295.19 	Sec. 17. Minnesota Statutes 2006, section 256B.0622, subdivision 2, is amended to 
295.20 	read:
295.21 		Subd. 2.Definitions. For purposes of this section, the following terms have the 
295.22 	meanings given them.
295.23 	(a) "Intensive nonresidential rehabilitative mental health services" means adult 
295.24 	rehabilitative mental health services as defined in section 256B.0623, subdivision 2, 
295.25 	paragraph (a), except that these services are provided by a multidisciplinary staff using 
295.26 	a total team approach consistent with assertive community treatment, the Fairweather 
295.27 	Lodge treatment model, as defined by the standards established by the National Coalition 
295.28 	for Community Living, and other evidence-based practices, and directed to recipients with 
295.29 	a serious mental illness who require intensive services.
295.30 	(b) "Intensive residential rehabilitative mental health services" means short-term, 
295.31 	time-limited services provided in a residential setting to recipients who are in need of 
295.32 	more restrictive settings and are at risk of significant functional deterioration if they do 
295.33 	not receive these services. Services are designed to develop and enhance psychiatric 
295.34 	stability, personal and emotional adjustment, self-sufficiency, and skills to live in a more 
295.35 	independent setting. Services must be directed toward a targeted discharge date with 
296.1 	specified client outcomes and must be consistent with the Fairweather Lodge treatment 
296.2 	model as defined in paragraph (a), and other evidence-based practices.
296.3 	(c) "Evidence-based practices" are nationally recognized mental health services that 
296.4 	are proven by substantial research to be effective in helping individuals with serious 
296.5 	mental illness obtain specific treatment goals.
296.6 	(d) "Overnight staff" means a member of the intensive residential rehabilitative 
296.7 	mental health treatment team who is responsible during hours when recipients are 
296.8 	typically asleep.
296.9 	(e) "Treatment team" means all staff who provide services under this section 
296.10 	to recipients. At a minimum, this includes the clinical supervisor, mental health 
296.11 	professionals, as defined in section 245.462, subdivision 18, clauses (1) to (5); mental 
296.12 	health practitioners, and as defined in section 245.462, subdivision 17; mental health 
296.13 	rehabilitation workers under section 256B.0623, subdivision 5, clause (3); and certified 
296.14 	peer specialists under section 256B.0615.

296.15 	Sec. 18. Minnesota Statutes 2006, section 256B.0623, subdivision 5, is amended to 
296.16 	read:
296.17 		Subd. 5.Qualifications of provider staff. Adult rehabilitative mental health 
296.18 	services must be provided by qualified individual provider staff of a certified provider 
296.19 	entity. Individual provider staff must be qualified under one of the following criteria:
296.20 	(1) a mental health professional as defined in section 245.462, subdivision 18, 
296.21 	clauses (1) to (5). If the recipient has a current diagnostic assessment by a licensed 
296.22 	mental health professional as defined in section 245.462, subdivision 18, clauses (1) to 
296.23 	(5), recommending receipt of adult mental health rehabilitative services, the definition of 
296.24 	mental health professional for purposes of this section includes a person who is qualified 
296.25 	under section 245.462, subdivision 18, clause (6), and who holds a current and valid 
296.26 	national certification as a certified rehabilitation counselor or certified psychosocial 
296.27 	rehabilitation practitioner; 
296.28 	(2) a mental health practitioner as defined in section 245.462, subdivision 17. The 
296.29 	mental health practitioner must work under the clinical supervision of a mental health 
296.30 	professional; or
296.31 	(3) a certified peer specialist under section 256B.0615. The certified peer specialist 
296.32 	must work under the clinical supervision of a mental health professional; or
296.33 	(3) (4) a mental health rehabilitation worker. A mental health rehabilitation worker 
296.34 	means a staff person working under the direction of a mental health practitioner or mental 
296.35 	health professional and under the clinical supervision of a mental health professional in 
297.1 	the implementation of rehabilitative mental health services as identified in the recipient's 
297.2 	individual treatment plan who:
297.3 	(i) is at least 21 years of age;
297.4 	(ii) has a high school diploma or equivalent;
297.5 	(iii) has successfully completed 30 hours of training during the past two years in all 
297.6 	of the following areas: recipient rights, recipient-centered individual treatment planning, 
297.7 	behavioral terminology, mental illness, co-occurring mental illness and substance abuse, 
297.8 	psychotropic medications and side effects, functional assessment, local community 
297.9 	resources, adult vulnerability, recipient confidentiality; and
297.10 	(iv) meets the qualifications in subitem (A) or (B):
297.11 	(A) has an associate of arts degree in one of the behavioral sciences or human 
297.12 	services, or is a registered nurse without a bachelor's degree, or who within the previous 
297.13 	ten years has:
297.14 	(1) three years of personal life experience with serious and persistent mental illness;
297.15 	(2) three years of life experience as a primary caregiver to an adult with a serious 
297.16 	mental illness or traumatic brain injury; or
297.17 	(3) 4,000 hours of supervised paid work experience in the delivery of mental health 
297.18 	services to adults with a serious mental illness or traumatic brain injury; or
297.19 	(B)(1) is fluent in the non-English language or competent in the culture of the 
297.20 	ethnic group to which at least 20 percent of the mental health rehabilitation worker's 
297.21 	clients belong;
297.22 	(2) receives during the first 2,000 hours of work, monthly documented individual 
297.23 	clinical supervision by a mental health professional;
297.24 	(3) has 18 hours of documented field supervision by a mental health professional 
297.25 	or practitioner during the first 160 hours of contact work with recipients, and at least six 
297.26 	hours of field supervision quarterly during the following year;
297.27 	(4) has review and cosignature of charting of recipient contacts during field 
297.28 	supervision by a mental health professional or practitioner; and
297.29 	(5) has 40 hours of additional continuing education on mental health topics during 
297.30 	the first year of employment.

297.31 	Sec. 19. Minnesota Statutes 2006, section 256B.0625, is amended by adding a 
297.32 	subdivision to read:
297.33 		Subd. 5l.Intensive mental health outpatient treatment. Medical assistance 
297.34 	covers intensive mental health outpatient treatment for dialectical behavioral therapy for 
297.35 	adults. The commissioner shall establish:
298.1 	(1) certification procedures to ensure that providers of these services are qualified; 
298.2 	and
298.3 	(2) treatment protocols including required service components and criteria for 
298.4 	admission, continued treatment, and discharge.

298.5 	EFFECTIVE DATE. This section is effective July 1, 2008, and subject to federal 
298.6 	approval. The commissioner shall notify the revisor of statutes when federal approval is 
298.7 	obtained.

298.8 	Sec. 20. Minnesota Statutes 2006, section 256B.0625, subdivision 20, is amended to 
298.9 	read:
298.10 		Subd. 20.Mental health case management. (a) To the extent authorized by rule 
298.11 	of the state agency, medical assistance covers case management services to persons with 
298.12 	serious and persistent mental illness and children with severe emotional disturbance. 
298.13 	Services provided under this section must meet the relevant standards in sections 245.461
298.14 	to 245.4887, the Comprehensive Adult and Children's Mental Health Acts, Minnesota 
298.15 	Rules, parts 9520.0900 to 9520.0926, and 9505.0322, excluding subpart 10. 
298.16 	(b) Entities meeting program standards set out in rules governing family community 
298.17 	support services as defined in section 245.4871, subdivision 17, are eligible for medical 
298.18 	assistance reimbursement for case management services for children with severe 
298.19 	emotional disturbance when these services meet the program standards in Minnesota 
298.20 	Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10. 
298.21 	(c) Medical assistance and MinnesotaCare payment for mental health case 
298.22 	management shall be made on a monthly basis. In order to receive payment for an eligible 
298.23 	child, the provider must document at least a face-to-face contact with the child, the child's 
298.24 	parents, or the child's legal representative. To receive payment for an eligible adult, the 
298.25 	provider must document:
298.26 	(1) at least a face-to-face contact with the adult or the adult's legal representative; or
298.27 	(2) at least a telephone contact with the adult or the adult's legal representative and 
298.28 	document a face-to-face contact with the adult or the adult's legal representative within 
298.29 	the preceding two months.
298.30 	(d) Payment for mental health case management provided by county or state staff 
298.31 	shall be based on the monthly rate methodology under section 256B.094, subdivision 6, 
298.32 	paragraph (b), with separate rates calculated for child welfare and mental health, and 
298.33 	within mental health, separate rates for children and adults. 
299.1 	(e) Payment for mental health case management provided by Indian health services 
299.2 	or by agencies operated by Indian tribes may be made according to this section or other 
299.3 	relevant federally approved rate setting methodology.
299.4 	(f) Payment for mental health case management provided by vendors who contract 
299.5 	with a county or Indian tribe shall be based on a monthly rate negotiated by the host county 
299.6 	or tribe. The negotiated rate must not exceed the rate charged by the vendor for the same 
299.7 	service to other payers. If the service is provided by a team of contracted vendors, the 
299.8 	county or tribe may negotiate a team rate with a vendor who is a member of the team. The 
299.9 	team shall determine how to distribute the rate among its members. No reimbursement 
299.10 	received by contracted vendors shall be returned to the county or tribe, except to reimburse 
299.11 	the county or tribe for advance funding provided by the county or tribe to the vendor.
299.12 	(g) If the service is provided by a team which includes contracted vendors, tribal 
299.13 	staff, and county or state staff, the costs for county or state staff participation in the team 
299.14 	shall be included in the rate for county-provided services. In this case, the contracted 
299.15 	vendor, the tribal agency, and the county may each receive separate payment for services 
299.16 	provided by each entity in the same month. In order to prevent duplication of services, 
299.17 	each entity must document, in the recipient's file, the need for team case management and 
299.18 	a description of the roles of the team members.
299.19 	(h) The commissioner shall calculate the nonfederal share of actual medical 
299.20 	assistance and general assistance medical care payments for each county, based on the 
299.21 	higher of calendar year 1995 or 1996, by service date, project that amount forward to 1999, 
299.22 	and transfer one-half of the result from medical assistance and general assistance medical 
299.23 	care to each county's mental health grants under section 256E.12 for calendar year 1999. 
299.24 	The annualized minimum amount added to each county's mental health grant shall be 
299.25 	$3,000 per year for children and $5,000 per year for adults. The commissioner may reduce 
299.26 	the statewide growth factor in order to fund these minimums. The annualized total amount 
299.27 	transferred shall become part of the base for future mental health grants for each county. 
299.28 	(i)(h) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of 
299.29 	costs for mental health case management shall be provided by the recipient's county of 
299.30 	responsibility, as defined in sections 256G.01 to 256G.12, from sources other than federal 
299.31 	funds or funds used to match other federal funds. If the service is provided by a tribal 
299.32 	agency, the nonfederal share, if any, shall be provided by the recipient's tribe. When this 
299.33 	service is paid by the state without a federal share through fee-for-service, 50 percent of 
299.34 	the cost shall be provided by the recipient's county of responsibility.
299.35 	(i) Notwithstanding any administrative rule to the contrary, prepaid medical 
299.36 	assistance, general assistance medical care, and MinnesotaCare include mental health case 
300.1 	management. When the service is provided through prepaid capitation, the nonfederal 
300.2 	share is paid by the state and the county pays no share.
300.3 	(j) The commissioner may suspend, reduce, or terminate the reimbursement to a 
300.4 	provider that does not meet the reporting or other requirements of this section. The county 
300.5 	of responsibility, as defined in sections 256G.01 to 256G.12, or, if applicable, the tribal 
300.6 	agency, is responsible for any federal disallowances. The county or tribe may share this 
300.7 	responsibility with its contracted vendors. 
300.8 	(k) The commissioner shall set aside a portion of the federal funds earned for county 
300.9 	expenditures under this section to repay the special revenue maximization account under 
300.10 	section 256.01, subdivision 2, clause (15). The repayment is limited to: 
300.11 	(1) the costs of developing and implementing this section; and
300.12 	(2) programming the information systems.
300.13 	(l) Payments to counties and tribal agencies for case management expenditures 
300.14 	under this section shall only be made from federal earnings from services provided 
300.15 	under this section. When this service is paid by the state without a federal share through 
300.16 	fee-for-service, 50 percent of the cost shall be provided by the state. Payments to 
300.17 	county-contracted vendors shall include both the federal earnings, the state share,  and the 
300.18 	county share.
300.19 	(m) Notwithstanding section 256B.041, county payments for the cost of mental 
300.20 	health case management services provided by county or state staff shall not be made 
300.21 	to the commissioner of finance. For the purposes of mental health case management 
300.22 	services provided by county or state staff under this section, the centralized disbursement 
300.23 	of payments to counties under section 256B.041 consists only of federal earnings from 
300.24 	services provided under this section. 
300.25 	(n)(m) Case management services under this subdivision do not include therapy, 
300.26 	treatment, legal, or outreach services.
300.27 	(o)(n) If the recipient is a resident of a nursing facility, intermediate care facility, 
300.28 	or hospital, and the recipient's institutional care is paid by medical assistance, payment 
300.29 	for case management services under this subdivision is limited to the last 180 days of 
300.30 	the recipient's residency in that facility and may not exceed more than six months in a 
300.31 	calendar year.
300.32 	(p)(o) Payment for case management services under this subdivision shall not 
300.33 	duplicate payments made under other program authorities for the same purpose.
300.34 	(q) By July 1, 2000, the commissioner shall evaluate the effectiveness of the changes 
300.35 	required by this section, including changes in number of persons receiving mental health 
300.36 	case management, changes in hours of service per person, and changes in caseload size.
301.1 	(r) For each calendar year beginning with the calendar year 2001, the annualized 
301.2 	amount of state funds for each county determined under paragraph (h) shall be adjusted by 
301.3 	the county's percentage change in the average number of clients per month who received 
301.4 	case management under this section during the fiscal year that ended six months prior to 
301.5 	the calendar year in question, in comparison to the prior fiscal year.
301.6 	(s) For counties receiving the minimum allocation of $3,000 or $5,000 described 
301.7 	in paragraph (h), the adjustment in paragraph (s) shall be determined so that the county 
301.8 	receives the higher of the following amounts:
301.9 	(1) a continuation of the minimum allocation in paragraph (h); or
301.10 	(2) an amount based on that county's average number of clients per month who 
301.11 	received case management under this section during the fiscal year that ended six months 
301.12 	prior to the calendar year in question, times the average statewide grant per person per 
301.13 	month for counties not receiving the minimum allocation.
301.14 	(t) The adjustments in paragraphs (s) and (t) shall be calculated separately for 
301.15 	children and adults.

301.16 	EFFECTIVE DATE. This section is effective January 1, 2009, except the 
301.17 	amendments to paragraphs (h), (r), (s), and (t) are effective January 1, 2008.

301.18 	Sec. 21. Minnesota Statutes 2006, section 256B.0625, subdivision 47, is amended to 
301.19 	read:
301.20 		Subd. 47.Treatment foster care services. Effective July 1, 2006 2007, and subject 
301.21 	to federal approval, medical assistance covers treatment foster care services according to 
301.22 	section 256B.0946.

301.23 	Sec. 22. Minnesota Statutes 2006, section 256B.0943, subdivision 8, is amended to 
301.24 	read:
301.25 		Subd. 8.Required preservice and continuing education. (a) A provider entity 
301.26 	shall establish a plan to provide preservice and continuing education for staff. The plan 
301.27 	must clearly describe the type of training necessary to maintain current skills and obtain 
301.28 	new skills and that relates to the provider entity's goals and objectives for services offered.
301.29 	(b) A provider that employs a mental health behavioral aide under this section must 
301.30 	require the mental health behavioral aide to complete 30 hours of preservice training. The 
301.31 	preservice training must include topics specified in Minnesota Rules, part 9535.4068, 
301.32 	subparts 1 and 2, and parent team training. The preservice training must include 15 hours 
301.33 	of in-person training of a mental health behavioral aide in mental health services delivery 
302.1 	and eight hours of parent team training. Curricula for parent team training must be 
302.2 	approved in advance by the commissioner. Components of parent team training include:
302.3 	(1) partnering with parents;
302.4 	(2) fundamentals of family support;
302.5 	(3) fundamentals of policy and decision making;
302.6 	(4) defining equal partnership;
302.7 	(5) complexities of the parent and service provider partnership in multiple service 
302.8 	delivery systems due to system strengths and weaknesses;
302.9 	(6) sibling impacts;
302.10 	(7) support networks; and
302.11 	(8) community resources.
302.12 	(c) A provider entity that employs a mental health practitioner and a mental health 
302.13 	behavioral aide to provide children's therapeutic services and supports under this section 
302.14 	must require the mental health practitioner and mental health behavioral aide to complete 
302.15 	20 hours of continuing education every two calendar years. The continuing education 
302.16 	must be related to serving the needs of a child with emotional disturbance in the child's 
302.17 	home environment and the child's family. The topics covered in orientation and training 
302.18 	must conform to Minnesota Rules, part 9535.4068.
302.19 	(d) The provider entity must document the mental health practitioner's or mental 
302.20 	health behavioral aide's annual completion of the required continuing education. The 
302.21 	documentation must include the date, subject, and number of hours of the continuing 
302.22 	education, and attendance records, as verified by the staff member's signature, job 
302.23 	title, and the instructor's name. The provider entity must keep documentation for each 
302.24 	employee, including records of attendance at professional workshops and conferences, 
302.25 	at a central location and in the employee's personnel file.

302.26 	Sec. 23. Minnesota Statutes 2006, section 256B.0945, subdivision 4, is amended to 
302.27 	read:
302.28 		Subd. 4.Payment rates. (a) Notwithstanding sections 256B.19 and 256B.041, 
302.29 	payments to counties for residential services provided by a residential facility shall only 
302.30 	be made of federal earnings for services provided under this section, and the nonfederal 
302.31 	share of costs for services provided under this section shall be paid by the county from 
302.32 	sources other than federal funds or funds used to match other federal funds. Payment to 
302.33 	counties for services provided according to this section shall be a proportion of the per 
302.34 	day contract rate that relates to rehabilitative mental health services and shall not include 
302.35 	payment for costs or services that are billed to the IV-E program as room and board. 
303.1 	(b) Per diem rates paid to providers under this section by prepaid plans shall be the 
303.2 	proportion of the per-day contract rate that relates to rehabilitative mental health services 
303.3 	and shall not include payment for group foster care costs or services that are billed to the 
303.4 	county of financial responsibility.
303.5 	(c) The commissioner shall set aside a portion not to exceed five percent of the 
303.6 	federal funds earned for county expenditures under this section to cover the state costs of 
303.7 	administering this section. Any unexpended funds from the set-aside shall be distributed 
303.8 	to the counties in proportion to their earnings under this section.

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

303.10 	Sec. 24. Minnesota Statutes 2006, section 256B.69, subdivision 4, is amended to read:
303.11 		Subd. 4.Limitation of choice. (a) The commissioner shall develop criteria to 
303.12 	determine when limitation of choice may be implemented in the experimental counties. 
303.13 	The criteria shall ensure that all eligible individuals in the county have continuing access 
303.14 	to the full range of medical assistance services as specified in subdivision 6.
303.15 	(b) The commissioner shall exempt the following persons from participation in the 
303.16 	project, in addition to those who do not meet the criteria for limitation of choice:
303.17 	(1) persons eligible for medical assistance according to section 256B.055, 
303.18 	subdivision 1;
303.19 	(2) persons eligible for medical assistance due to blindness or disability as 
303.20 	determined by the Social Security Administration or the state medical review team, unless:
303.21 	(i) they are 65 years of age or older; or
303.22 	(ii) they reside in Itasca County or they reside in a county in which the commissioner 
303.23 	conducts a pilot project under a waiver granted pursuant to section 1115 of the Social 
303.24 	Security Act;
303.25 	(3) recipients who currently have private coverage through a health maintenance 
303.26 	organization;
303.27 	(4) recipients who are eligible for medical assistance by spending down excess 
303.28 	income for medical expenses other than the nursing facility per diem expense;
303.29 	(5) recipients who receive benefits under the Refugee Assistance Program, 
303.30 	established under United States Code, title 8, section 1522(e);
303.31 	(6) children who are both determined to be severely emotionally disturbed and 
303.32 	receiving case management services according to section 256B.0625, subdivision 20, 
303.33 	except children who are eligible for and who decline enrollment in an approved preferred 
303.34 	integrated network under section 245.4682;
304.1 	(7) adults who are both determined to be seriously and persistently mentally ill and 
304.2 	received case management services according to section 256B.0625, subdivision 20;
304.3 	(8) persons eligible for medical assistance according to section 256B.057, 
304.4 	subdivision 10; and
304.5 	(9) persons with access to cost-effective employer-sponsored private health 
304.6 	insurance or persons enrolled in a non-Medicare individual health plan determined to be 
304.7 	cost-effective according to section 256B.0625, subdivision 15.
304.8 	Children under age 21 who are in foster placement may enroll in the project on an elective 
304.9 	basis. Individuals excluded under clauses (1), (6), and (7) may choose to enroll on an 
304.10 	elective basis. The commissioner may enroll recipients in the prepaid medical assistance 
304.11 	program for seniors who are (1) age 65 and over, and (2) eligible for medical assistance by 
304.12 	spending down excess income.
304.13 	(c) The commissioner may allow persons with a one-month spenddown who are 
304.14 	otherwise eligible to enroll to voluntarily enroll or remain enrolled, if they elect to prepay 
304.15 	their monthly spenddown to the state.
304.16 	(d) The commissioner may require those individuals to enroll in the prepaid medical 
304.17 	assistance program who otherwise would have been excluded under paragraph (b), clauses 
304.18 	(1), (3), and (8), and under Minnesota Rules, part 9500.1452, subpart 2, items H, K, and L.
304.19 	(e) Before limitation of choice is implemented, eligible individuals shall be notified 
304.20 	and after notification, shall be allowed to choose only among demonstration providers. 
304.21 	The commissioner may assign an individual with private coverage through a health 
304.22 	maintenance organization, to the same health maintenance organization for medical 
304.23 	assistance coverage, if the health maintenance organization is under contract for medical 
304.24 	assistance in the individual's county of residence. After initially choosing a provider, 
304.25 	the recipient is allowed to change that choice only at specified times as allowed by the 
304.26 	commissioner. If a demonstration provider ends participation in the project for any reason, 
304.27 	a recipient enrolled with that provider must select a new provider but may change providers 
304.28 	without cause once more within the first 60 days after enrollment with the second provider.
304.29 	(f) An infant born to a woman who is eligible for and receiving medical assistance 
304.30 	and who is enrolled in the prepaid medical assistance program shall be retroactively 
304.31 	enrolled to the month of birth in the same managed care plan as the mother once the 
304.32 	child is enrolled in medical assistance unless the child is determined to be excluded from 
304.33 	enrollment in a prepaid plan under this section.

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

305.1 	Sec. 25. Minnesota Statutes 2006, section 256B.69, subdivision 5g, is amended to read:
305.2 		Subd. 5g.Payment for covered services. For services rendered on or after January 
305.3 	1, 2003, the total payment made to managed care plans for providing covered services 
305.4 	under the medical assistance and general assistance medical care programs is reduced by 
305.5 	.5 percent from their current statutory rates. This provision excludes payments for nursing 
305.6 	home services, home and community-based waivers, and payments to demonstration 
305.7 	projects for persons with disabilities, and mental health services added as covered benefits 
305.8 	after December 31, 2007.

305.9 	Sec. 26. Minnesota Statutes 2006, section 256B.69, subdivision 5h, is amended to read:
305.10 		Subd. 5h.Payment reduction. In addition to the reduction in subdivision 5g, 
305.11 	the total payment made to managed care plans under the medical assistance program is 
305.12 	reduced 1.0 percent for services provided on or after October 1, 2003, and an additional 
305.13 	1.0 percent for services provided on or after January 1, 2004. This provision excludes 
305.14 	payments for nursing home services, home and community-based waivers, and payments 
305.15 	to demonstration projects for persons with disabilities, and mental health services added as 
305.16 	covered benefits after December 31, 2007.

305.17 	Sec. 27. Minnesota Statutes 2006, section 256B.763, is amended to read:
305.18 	256B.763 CRITICAL ACCESS MENTAL HEALTH RATE INCREASE.
305.19 	(a) For services defined in paragraph (b) and rendered on or after July 1, 2007, 
305.20 	payment rates shall be increased by 23.7 percent over the rates in effect on January 1, 
305.21 	2006, for:
305.22 	(1) psychiatrists and advanced practice registered nurses with a psychiatric specialty;
305.23 	(2) community mental health centers under section 256B.0625, subdivision 5; and
305.24 	(3) mental health clinics and centers certified under Minnesota Rules, parts 
305.25 	9520.0750 to 9520.0870, or hospital outpatient psychiatric departments that are designated 
305.26 	as essential community providers under section 62Q.19.
305.27 	(b) This increase applies to group skills training when provided as a component of 
305.28 	children's therapeutic services and support, psychotherapy, medication management, 
305.29 	evaluation and management, diagnostic assessment, explanation of findings, psychological 
305.30 	testing, neuropsychological services, direction of behavioral aides, and inpatient 
305.31 	consultation.
305.32 	(c) This increase does not apply to rates that are governed by section 256B.0625, 
305.33 	subdivision 30, or 256B.761, paragraph (b), other cost-based rates, rates that are 
306.1 	negotiated with the county, rates that are established by the federal government, or rates 
306.2 	that increased between January 1, 2004, and January 1, 2005.
306.3 	(d) The commissioner shall adjust rates paid to prepaid health plans under contract 
306.4 	with the commissioner to reflect the rate increases provided in paragraphparagraphs (a), 
306.5 	(e), and (f). The prepaid health plan must pass this rate increase to the providers identified 
306.6 	in paragraphparagraphs (a), (e), (f), and (g).
306.7 	(e) Payment rates shall be increased by 23.7 percent over the rates in effect on 
306.8 	December 31, 2007, for:
306.9 	(1) medication education services provided on or after January 1, 2008, by adult 
306.10 	rehabilitative mental health services providers certified under section 256B.0623; and
306.11 	(2) mental health behavioral aide services provided on or after January 1, 2008, by 
306.12 	children's therapeutic services and support providers certified under section 256B.0943.
306.13 	(f) For services defined in paragraph (b) and rendered on or after January 1, 2008, by 
306.14 	children's therapeutic services and support providers certified under section 256B.0943 
306.15 	and not already included in paragraph (a), payment rates shall be increased by 23.7 percent 
306.16 	over the rates in effect on December 31, 2007.
306.17 	(g) Payment rates shall be increased by 2.3 percent over the rates in effect on 
306.18 	December 31, 2007, for individual and family skills training provided on or after January 
306.19 	1, 2008, by children's therapeutic services and support providers certified under section 
306.20 	256B.0943.

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

306.22 	Sec. 28. Minnesota Statutes 2006, section 256D.03, subdivision 4, is amended to read:
306.23 		Subd. 4.General assistance medical care; services. (a)(i) For a person who is 
306.24 	eligible under subdivision 3, paragraph (a), clause (2), item (i), general assistance medical 
306.25 	care covers, except as provided in paragraph (c):
306.26 	(1) inpatient hospital services;
306.27 	(2) outpatient hospital services;
306.28 	(3) services provided by Medicare certified rehabilitation agencies;
306.29 	(4) prescription drugs and other products recommended through the process 
306.30 	established in section 256B.0625, subdivision 13;
306.31 	(5) equipment necessary to administer insulin and diagnostic supplies and equipment 
306.32 	for diabetics to monitor blood sugar level;
306.33 	(6) eyeglasses and eye examinations provided by a physician or optometrist;
306.34 	(7) hearing aids;
306.35 	(8) prosthetic devices;
307.1 	(9) laboratory and X-ray services;
307.2 	(10) physician's services;
307.3 	(11) medical transportation except special transportation;
307.4 	(12) chiropractic services as covered under the medical assistance program;
307.5 	(13) podiatric services;
307.6 	(14) dental services as covered under the medical assistance program;
307.7 	(15) outpatient services provided by a mental health center or clinic that is under 
307.8 	contract with the county board and is established under section 245.62 mental health 
307.9 	services covered under chapter 256B;
307.10 	(16) day treatment services for mental illness provided under contract with the 
307.11 	county board;
307.12 	(17)(16) prescribed medications for persons who have been diagnosed as mentally 
307.13 	ill as necessary to prevent more restrictive institutionalization;
307.14 	(18) psychological services,(17) medical supplies and equipment, and Medicare 
307.15 	premiums, coinsurance and deductible payments;
307.16 	(19)(18) medical equipment not specifically listed in this paragraph when the use 
307.17 	of the equipment will prevent the need for costlier services that are reimbursable under 
307.18 	this subdivision;
307.19 	(20)(19) services performed by a certified pediatric nurse practitioner, a 
307.20 	certified family nurse practitioner, a certified adult nurse practitioner, a certified 
307.21 	obstetric/gynecological nurse practitioner, a certified neonatal nurse practitioner, or a 
307.22 	certified geriatric nurse practitioner in independent practice, if (1) the service is otherwise 
307.23 	covered under this chapter as a physician service, (2) the service provided on an inpatient 
307.24 	basis is not included as part of the cost for inpatient services included in the operating 
307.25 	payment rate, and (3) the service is within the scope of practice of the nurse practitioner's 
307.26 	license as a registered nurse, as defined in section 148.171;
307.27 	(21)(20) services of a certified public health nurse or a registered nurse practicing 
307.28 	in a public health nursing clinic that is a department of, or that operates under the direct 
307.29 	authority of, a unit of government, if the service is within the scope of practice of the 
307.30 	public health nurse's license as a registered nurse, as defined in section 148.171; and
307.31 	(22)(21) telemedicine consultations, to the extent they are covered under section 
307.32 	256B.0625, subdivision 3b; and.
307.33 	(23) mental health telemedicine and psychiatric consultation as covered under 
307.34 	section 256B.0625, subdivisions 46 and 48.
307.35 	(ii) Effective October 1, 2003, for a person who is eligible under subdivision 3, 
307.36 	paragraph (a), clause (2), item (ii), general assistance medical care coverage is limited 
308.1 	to inpatient hospital services, including physician services provided during the inpatient 
308.2 	hospital stay. A $1,000 deductible is required for each inpatient hospitalization.
308.3 	(b) Effective August 1, 2005, sex reassignment surgery is not covered under this 
308.4 	subdivision.
308.5 	(c) In order to contain costs, the commissioner of human services shall select 
308.6 	vendors of medical care who can provide the most economical care consistent with high 
308.7 	medical standards and shall where possible contract with organizations on a prepaid 
308.8 	capitation basis to provide these services. The commissioner shall consider proposals by 
308.9 	counties and vendors for prepaid health plans, competitive bidding programs, block grants, 
308.10 	or other vendor payment mechanisms designed to provide services in an economical 
308.11 	manner or to control utilization, with safeguards to ensure that necessary services are 
308.12 	provided. Before implementing prepaid programs in counties with a county operated or 
308.13 	affiliated public teaching hospital or a hospital or clinic operated by the University of 
308.14 	Minnesota, the commissioner shall consider the risks the prepaid program creates for the 
308.15 	hospital and allow the county or hospital the opportunity to participate in the program in a 
308.16 	manner that reflects the risk of adverse selection and the nature of the patients served by 
308.17 	the hospital, provided the terms of participation in the program are competitive with the 
308.18 	terms of other participants considering the nature of the population served. Payment for 
308.19 	services provided pursuant to this subdivision shall be as provided to medical assistance 
308.20 	vendors of these services under sections 256B.02, subdivision 8, and 256B.0625. For 
308.21 	payments made during fiscal year 1990 and later years, the commissioner shall consult 
308.22 	with an independent actuary in establishing prepayment rates, but shall retain final control 
308.23 	over the rate methodology.
308.24 	(d) Recipients eligible under subdivision 3, paragraph (a), shall pay the following 
308.25 	co-payments for services provided on or after October 1, 2003:
308.26 	(1) $25 for eyeglasses;
308.27 	(2) $25 for nonemergency visits to a hospital-based emergency room;
308.28 	(3) $3 per brand-name drug prescription and $1 per generic drug prescription, 
308.29 	subject to a $12 per month maximum for prescription drug co-payments. No co-payments 
308.30 	shall apply to antipsychotic drugs when used for the treatment of mental illness; and
308.31 	(4) 50 percent coinsurance on restorative dental services.
308.32 	(e) Co-payments shall be limited to one per day per provider for nonpreventive visits, 
308.33 	eyeglasses, and nonemergency visits to a hospital-based emergency room. Recipients of 
308.34 	general assistance medical care are responsible for all co-payments in this subdivision. 
308.35 	The general assistance medical care reimbursement to the provider shall be reduced by 
308.36 	the amount of the co-payment, except that reimbursement for prescription drugs shall not 
309.1 	be reduced once a recipient has reached the $12 per month maximum for prescription 
309.2 	drug co-payments. The provider collects the co-payment from the recipient. Providers 
309.3 	may not deny services to recipients who are unable to pay the co-payment, except as 
309.4 	provided in paragraph (f).
309.5 	(f) If it is the routine business practice of a provider to refuse service to an individual 
309.6 	with uncollected debt, the provider may include uncollected co-payments under this 
309.7 	section. A provider must give advance notice to a recipient with uncollected debt before 
309.8 	services can be denied.
309.9 	(g) Any county may, from its own resources, provide medical payments for which 
309.10 	state payments are not made.
309.11 	(h) Chemical dependency services that are reimbursed under chapter 254B must not 
309.12 	be reimbursed under general assistance medical care.
309.13 	(i) The maximum payment for new vendors enrolled in the general assistance 
309.14 	medical care program after the base year shall be determined from the average usual and 
309.15 	customary charge of the same vendor type enrolled in the base year.
309.16 	(j) The conditions of payment for services under this subdivision are the same as the 
309.17 	conditions specified in rules adopted under chapter 256B governing the medical assistance 
309.18 	program, unless otherwise provided by statute or rule.
309.19 	(k) Inpatient and outpatient payments shall be reduced by five percent, effective July 
309.20 	1, 2003. This reduction is in addition to the five percent reduction effective July 1, 2003, 
309.21 	and incorporated by reference in paragraph (i).
309.22 	(l) Payments for all other health services except inpatient, outpatient, and pharmacy 
309.23 	services shall be reduced by five percent, effective July 1, 2003.
309.24 	(m) Payments to managed care plans shall be reduced by five percent for services 
309.25 	provided on or after October 1, 2003.
309.26 	(n) A hospital receiving a reduced payment as a result of this section may apply the 
309.27 	unpaid balance toward satisfaction of the hospital's bad debts.
309.28 	(o) Fee-for-service payments for nonpreventive visits shall be reduced by $3 
309.29 	for services provided on or after January 1, 2006. For purposes of this subdivision, a 
309.30 	visit means an episode of service which is required because of a recipient's symptoms, 
309.31 	diagnosis, or established illness, and which is delivered in an ambulatory setting by 
309.32 	a physician or physician ancillary, chiropractor, podiatrist, advance practice nurse, 
309.33 	audiologist, optician, or optometrist.
309.34 	(p) Payments to managed care plans shall not be increased as a result of the removal 
309.35 	of the $3 nonpreventive visit co-payment effective January 1, 2006.
310.1 	(q) Payments for mental health services added as covered benefits after December 
310.2 	31, 2007, are not subject to the reductions in paragraphs (i), (k), (l), and (m).

310.3 	EFFECTIVE DATE. This section is effective January 1, 2008, except mental health 
310.4 	case management under paragraph (a), clause (i), item (15), is effective January 1, 2009.

310.5 	Sec. 29. Minnesota Statutes 2006, section 256L.03, subdivision 1, is amended to read:
310.6 		Subdivision 1.Covered health services. For individuals under section 256L.04, 
310.7 	subdivision 7, with income no greater than 75 percent of the federal poverty guidelines 
310.8 	or for families with children under section 256L.04, subdivision 1, all subdivisions of 
310.9 	this section apply. "Covered health services" means the health services reimbursed 
310.10 	under chapter 256B, with the exception of inpatient hospital services, special education 
310.11 	services, private duty nursing services, adult dental care services other than services 
310.12 	covered under section 256B.0625, subdivision 9, orthodontic services, nonemergency 
310.13 	medical transportation services, personal care assistant and case management services, 
310.14 	nursing home or intermediate care facilities services, inpatient mental health services, 
310.15 	and chemical dependency services. Outpatient mental health services covered under the 
310.16 	MinnesotaCare program are limited to diagnostic assessments, psychological testing, 
310.17 	explanation of findings, mental health telemedicine, psychiatric consultation, medication 
310.18 	management by a physician, day treatment, partial hospitalization, and individual, family, 
310.19 	and group psychotherapy.
310.20 	No public funds shall be used for coverage of abortion under MinnesotaCare 
310.21 	except where the life of the female would be endangered or substantial and irreversible 
310.22 	impairment of a major bodily function would result if the fetus were carried to term; or 
310.23 	where the pregnancy is the result of rape or incest.
310.24 	Covered health services shall be expanded as provided in this section.

310.25 	EFFECTIVE DATE. This section is effective January 1, 2008, except coverage for 
310.26 	mental health case management under subdivision 1 is effective January 1, 2009.

310.27 	Sec. 30. Minnesota Statutes 2006, section 256L.03, subdivision 5, is amended to read:
310.28 		Subd. 5.Co-payments and coinsurance. (a) Except as provided in paragraphs (b) 
310.29 	and (c), the MinnesotaCare benefit plan shall include the following co-payments and 
310.30 	coinsurance requirements for all enrollees:
310.31 	(1) ten percent of the paid charges for inpatient hospital services for adult enrollees, 
310.32 	subject to an annual inpatient out-of-pocket maximum of $1,000 per individual and 
310.33 	$3,000 per family;
311.1 	(2) $3 per prescription for adult enrollees;
311.2 	(3) $25 for eyeglasses for adult enrollees;
311.3 	(4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an 
311.4 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
311.5 	established illness, and which is delivered in an ambulatory setting by a physician or 
311.6 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
311.7 	audiologist, optician, or optometrist; and
311.8 	(5) $6 for nonemergency visits to a hospital-based emergency room.
311.9 	(b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of 
311.10 	children under the age of 21 in households with family income equal to or less than 175 
311.11 	percent of the federal poverty guidelines. Paragraph (a), clause (1), does not apply to 
311.12 	parents and relative caretakers of children under the age of 21 in households with family 
311.13 	income greater than 175 percent of the federal poverty guidelines for inpatient hospital 
311.14 	admissions occurring on or after January 1, 2001.
311.15 	(c) Paragraph (a), clauses (1) to (4), do not apply to pregnant women and children 
311.16 	under the age of 21.
311.17 	(d) Paragraph (a), clause (4), does not apply to mental health services.
311.18 	(e) Adult enrollees with family gross income that exceeds 175 percent of the 
311.19 	federal poverty guidelines and who are not pregnant shall be financially responsible for 
311.20 	the coinsurance amount, if applicable, and amounts which exceed the $10,000 inpatient 
311.21 	hospital benefit limit.
311.22 	(e) (f) When a MinnesotaCare enrollee becomes a member of a prepaid health plan, 
311.23 	or changes from one prepaid health plan to another during a calendar year, any charges 
311.24 	submitted towards the $10,000 annual inpatient benefit limit, and any out-of-pocket 
311.25 	expenses incurred by the enrollee for inpatient services, that were submitted or incurred 
311.26 	prior to enrollment, or prior to the change in health plans, shall be disregarded.

311.27 	Sec. 31. Minnesota Statutes 2006, section 256L.12, subdivision 9a, is amended to read:
311.28 		Subd. 9a.Rate setting; ratable reduction. For services rendered on or after 
311.29 	October 1, 2003, the total payment made to managed care plans under the MinnesotaCare 
311.30 	program is reduced 1.0 percent. This provision excludes payments for mental health 
311.31 	services added as covered benefits after December 31, 2007.

311.32 	Sec. 32. Minnesota Statutes 2006, section 609.115, subdivision 9, is amended to read:
311.33 		Subd. 9.Compulsive gambling assessment required. (a) If a person is convicted 
311.34 	of theft under section 609.52, embezzlement of public funds under section 609.54, or 
312.1 	forgery under section 609.625, 609.63, or 609.631, the probation officer shall determine in 
312.2 	the report prepared under subdivision 1 whether or not compulsive gambling contributed 
312.3 	to the commission of the offense. If so, the report shall contain the results of a compulsive 
312.4 	gambling assessment conducted in accordance with this subdivision. The probation officer 
312.5 	shall make an appointment for the offender to undergo the assessment if so indicated. 
312.6 	(b) The compulsive gambling assessment report must include a recommended level 
312.7 	of treatment for the offender if the assessor concludes that the offender is in need of 
312.8 	compulsive gambling treatment. The assessment must be conducted by an assessor 
312.9 	qualified either under section 245.98, subdivision 2a Minnesota Rules, part 9585.0040, 
312.10 	subpart 1, item C, or qualifications determined to be equivalent by the commissioner, to 
312.11 	perform these assessments or to provide compulsive gambling treatment. An assessor 
312.12 	providing a compulsive gambling assessment may not have any direct or shared financial 
312.13 	interest or referral relationship resulting in shared financial gain with a treatment provider. 
312.14 	If an independent assessor is not available, the probation officer may use the services of an 
312.15 	assessor with a financial interest or referral relationship as authorized under rules adopted 
312.16 	by the commissioner of human services under section 245.98, subdivision 2a. 
312.17 	(c) The commissioner of human services shall reimburse the assessor for the 
312.18 	costs associated with aeach compulsive gambling assessment at a rate established 
312.19 	by the commissioner up to a maximum of $100 for each assessment. To the extent 
312.20 	practicable, the commissioner shall standardize reimbursement rates for assessments. The 
312.21 	commissioner shall reimburse these coststhe assessor after receiving written verification 
312.22 	from the probation officer that the assessment was performed and found acceptable.

312.23 	Sec. 33. REPORT.
 312.24 	The commissioner shall make a report to the legislature by January 15, 2008, 
312.25 	regarding the transfer of funds to counties for state registered nurses employed in 
312.26 	community mental health pilot projects as part of the assertive community treatment 
312.27 	teams under Minnesota Statutes, section 245.4661. The report shall address the impact 
312.28 	of the nursing shortage on replacing these positions, continuity of patient care if these 
312.29 	positions cannot be filled, and ways to maintain state registered nurses in these positions 
312.30 	until the nurse retires or leaves employment. No funds for state registered nurse positions 
312.31 	referenced in this section may be transferred before the report date. This section does not 
312.32 	apply to positions vacated by routine attrition.

312.33 	Sec. 34. CASE MANAGEMENT; BEST PRACTICES.
 313.1 	The commissioner of human services, in consultation with consumers, families, 
313.2 	counties, and other interested stakeholders, will develop recommendations for changes in 
313.3 	the adult mental health act related to case management, consistent with evidence-based 
313.4 	and best practices.

313.5 	Sec. 35. REGIONAL CHILDREN'S MENTAL HEALTH INITIATIVE.
 313.6 		Subdivision 1.Pilot project authorized; purpose. A two-year Regional Children's 
313.7 	Mental Health Initiative pilot project is established to improve children's mental health 
313.8 	service coordination, communication, and processes in Blue Earth, Brown, Faribault, 
313.9 	Freeborn, Le Sueur, Martin, Nicollet, Rice, Sibley, Waseca, and Watonwan Counties. The 
313.10 	purpose of the Regional Children's Mental Health Initiative will be to plan and develop 
313.11 	new programs and services related to children's mental health in south central Minnesota.
313.12 		Subd. 2.Goals. To accomplish its purpose, the Regional Children's Mental Health 
313.13 	Initiative shall have the following goals:
313.14 	(1) work to streamline delivery and regional access to services;
313.15 	(2) share strategies and resources for the management of out-of-home placements;
313.16 	(3) establish standard protocols and operating procedures for functions that are 
313.17 	performed across all counties;
313.18 	(4) share information to improve resource allocation and service delivery across 
313.19 	counties;
313.20 	(5) evaluate outcomes of various treatment alternatives;
313.21 	(6) create a network for and provide support to service delivery groups;
313.22 	(7) establish a regional process to match children in need of out-of-home placement 
313.23 	with foster homes that can meet their needs; and
313.24 	(8) recruit and retain foster homes.
313.25 		Subd. 3.Director's Council. The Director's Council shall govern the operations of 
313.26 	the Regional Children's Mental Health Initiative. Members of the Director's Council shall 
313.27 	represent each of the 11 counties participating in the pilot project.
313.28 		Subd. 4.Regional Children's Mental Health Initiative Team. The members 
313.29 	of the Regional Children's Mental Health Initiative Team shall conduct planning and 
313.30 	development of new and modified children's mental health programs and services in the 
313.31 	region. Members of the team shall reflect the cultural, demographic, and geographic 
313.32 	diversity of the region and shall be composed of representatives from each of the 
313.33 	following:
313.34 	(1) the medical community;
313.35 	(2) human services;
314.1 	(3) corrections;
314.2 	(4) education;
314.3 	(5) mental health providers and vendors;
314.4 	(6) advocacy organizations;
314.5 	(7) parents; and
314.6 	(8) children and youth.
314.7 		Subd. 5.Authority. The regional children's mental health initiative shall have the 
314.8 	authority to develop and implement the following programs:
314.9 	(1) Flexible funding payments. This program will make funds available to respond to 
314.10 	the unique and unpredictable needs of children with mental health issues such as the need 
314.11 	for prescription drugs, transportation, clothing, and assessments not otherwise available.
314.12 	(2) Transition to self-sufficiency. This program will help youths between the ages of 
314.13 	14 and 21 establish professional relationships, find jobs, build financial foundations, and 
314.14 	learn to fulfill their roles as productive citizens.
314.15 	(3) Crisis response. This program will establish public and private partnerships 
314.16 	to offer a range of options to meet the needs of children in crisis. Methods to meet 
314.17 	these needs may include accessible local services, holistic assessments, urgent care and 
314.18 	stabilization services, and telehealth for specialized diagnosis and therapeutic sessions.
314.19 	(4) Integrated services for complex conditions. This program will design, develop, 
314.20 	and implement packages of integrated services to meet the needs of children with specific, 
314.21 	complex conditions.
314.22 		Subd. 6.Evaluation and report. The regional children's mental health initiative 
314.23 	shall develop a method for evaluating the effectiveness of this pilot project focusing on 
314.24 	identifiable goals and outcomes. An interim report on the pilot project's effectiveness 
314.25 	shall be submitted to the house and senate finance committees having jurisdiction over 
314.26 	mental health, the commissioner of human services, and the Minnesota Association of 
314.27 	County Social Service Administrators no later than December 31, 2008. A final report 
314.28 	is due no later than December 31, 2009.

314.29 	Sec. 36. MINNESOTA FAMILY INVESTMENT PROGRAM AND CHILDREN'S 
314.30 	MENTAL HEALTH PILOT PROJECT.
 314.31 		Subdivision 1.Pilot project authorized. The commissioner of human services 
314.32 	shall fund a three-year pilot project to measure the effect of children's identified mental 
314.33 	health needs, including social and emotional needs, on Minnesota family investment 
314.34 	program (MFIP) participants' ability to obtain and retain employment. The project shall 
315.1 	also measure the effect on work activity of MFIP participants' needs to address their 
315.2 	children's identified mental health needs.
315.3 		Subd. 2.Provider and agency proposals. (a) Interested MFIP providers and 
315.4 	agencies shall: 
315.5 	(1) submit proposals defining how they will identify participants whose children 
315.6 	have mental health needs that hinder the employment process; 
315.7 	(2) connect families with appropriate developmental, social, and emotional 
315.8 	screenings and services; and 
315.9 	(3) incorporate those services into the participant's employment plan.
315.10 	Each proposal under this paragraph must include an evaluation component.
315.11 	(b) Interested MFIP providers and agencies shall develop a protocol to inform MFIP 
315.12 	participants of the following: 
315.13 	(1) the availability of developmental, social, and emotional screening tools for 
315.14 	children and youth; 
315.15 	(2) the purpose of the screenings; 
315.16 	(3) how the information will be used to assist the participants in identifying and 
315.17 	addressing potential barriers to employment; and 
315.18 	(4) that their employment plan may be modified based on the screening results.
315.19 		Subd. 3.Program components. (a) MFIP providers shall obtain the participant's 
315.20 	written consent for participation in the pilot project, including consent for developmental, 
315.21 	social, and emotional screening.
315.22 	(b) MFIP providers shall coordinate with county social service agencies and health 
315.23 	plans to assist recipients in arranging referrals indicated by the screening results.
315.24 	(c) Tools used for developmental, social, and emotional screenings shall be approved 
315.25 	by the commissioner of human services.
315.26 		Subd. 4.Program evaluation. The commissioner of human services shall conduct 
315.27 	an evaluation of the pilot project to determine:
315.28 	(1) the number of participants who took part in the screening;
315.29 	(2) the number of children who were screened and what screening tools were used;
315.30 	(3) the number of children who were identified in the screening who needed referral 
315.31 	or follow-up services;
315.32 	(4) the number of children who received services, what agency provided the services, 
315.33 	and what type of services were provided;
315.34 	(5) the number of employment plans that were adjusted to include the activities 
315.35 	recommended in the screenings;
315.36 	(6) the changes in work participation rates;
316.1 	(7) the changes in earned income;
316.2 	(8) the changes in sanction rates; and
316.3 	(9) the participants' report of program effectiveness.
316.4 		Subd. 5.Work activity. Participant involvement in screenings and subsequent 
316.5 	referral and follow-up services shall count as work activity under Minnesota Statutes, 
316.6 	section 256J.49, subdivision 13.
316.7 		Subd. 6.Evaluation. Of the amounts appropriated, the commissioner may use up 
316.8 	to $100,000 for evaluation of this pilot.

316.9 	Sec. 37. SOCIAL AND ECONOMIC COSTS OF GAMBLING.
 316.10 		Subdivision 1.Report. The commissioner of human services, in consultation with 
316.11 	the state affiliate of the National Council on Problem Gambling, stakeholders, and licensed 
316.12 	vendors, shall prepare a report that provides a process and funding mechanism to study the 
316.13 	issues in subdivisions 2 and 3. The commissioner, in consultation with the state affiliate 
316.14 	of the National Council on Problem Gambling, stakeholders, and licensed vendors, shall 
316.15 	include in the report potential financial commitments made by stakeholders and others in 
316.16 	order to fund the study. The report is due to the legislative committees having jurisdiction 
316.17 	over compulsive gambling issues by December 1, 2007. 
316.18 		Subd. 2.Issues to be addressed. The study must address:
316.19 	(1) state, local, and tribal government policies and practices in Minnesota to legalize 
316.20 	or prohibit gambling;
316.21 	(2) the relationship between gambling and crime in Minnesota, including: (i) the 
316.22 	relationship between gambling and overall crime rates; (ii) the relationship between 
316.23 	gambling and crimes rates for specific crimes, such as forgery, domestic abuse, child 
316.24 	neglect and abuse, alcohol and drug offenses, and youth crime; and (iii) enforcement 
316.25 	and regulation practices that are intended to address the relationship between gambling 
316.26 	and levels of crime;
316.27 	(3) the relationship between expanded gambling and increased rates of problem 
316.28 	gambling in Minnesota, including the impact of pathological or problem gambling on 
316.29 	individuals, families, businesses, social institutions, and the economy;
316.30 	(4) the social impact of gambling on individuals, families, businesses, and social 
316.31 	institutions in Minnesota, including an analysis of the relationship between gambling and 
316.32 	depression, abuse, divorce, homelessness, suicide, and bankruptcy;
316.33 	(5) the economic impact of gambling on state, local, and tribal economies in 
316.34 	Minnesota; and
317.1 	(6) any other issues deemed necessary in assessing the social and economic impact 
317.2 	of gambling in Minnesota.
317.3 		Subd. 3.Quantification of social and economic impact. The study shall quantify 
317.4 	the social and economic impact on both (1) state, local, and tribal governments in 
317.5 	Minnesota, and (2) Minnesota's communities and social institutions, including individuals, 
317.6 	families, and businesses within those communities and institutions.

317.7 	Sec. 38. REVISOR'S INSTRUCTION.
 317.8 	(a) The revisor of statutes shall change the references to sections "245.487 to 
317.9 	245.4887" wherever it appears in statutes or rules to sections "245.487 to 245.4889."
317.10 	(b) The revisor of statutes shall correct all internal references that are necessary 
317.11 	from the relettering in section 20.

317.12 	Sec. 39.  REPEALER.
 317.13 	Minnesota Rules, part 9585.0030, is repealed.

317.14 	ARTICLE 9
317.15 	DEPARTMENT OF HEALTH POLICY

317.16 	Section 1. Minnesota Statutes 2006, section 62J.17, subdivision 2, is amended to read:
317.17 		Subd. 2.Definitions. For purposes of this section, the terms defined in this 
317.18 	subdivision have the meanings given.
317.19 	(a) "Access" means the financial, temporal, and geographic availability of health 
317.20 	care to individuals who need it.
317.21 	(b)(a) "Capital expenditure" means an expenditure which, under generally accepted 
317.22 	accounting principles, is not properly chargeable as an expense of operation and 
317.23 	maintenance.
317.24 	(c) "Cost" means the amount paid by consumers or third party payers for health 
317.25 	care services or products.
317.26 	(d) "Date of the major spending commitment" means the date the provider formally 
317.27 	obligated itself to the major spending commitment. The obligation may be incurred 
317.28 	by entering into a contract, making a down payment, issuing bonds or entering a loan 
317.29 	agreement to provide financing for the major spending commitment, or taking some other 
317.30 	formal, tangible action evidencing the provider's intention to make the major spending 
317.31 	commitment.
317.32 	(e)(b) "Health care service" means:
318.1 	(1) a service or item that would be covered by the medical assistance program 
318.2 	under chapter 256B if provided in accordance with medical assistance requirements to an 
318.3 	eligible medical assistance recipient; and
318.4 	(2) a service or item that would be covered by medical assistance except that it is 
318.5 	characterized as experimental, cosmetic, or voluntary.
318.6 	"Health care service" does not include retail, over-the-counter sales of 
318.7 	nonprescription drugs and other retail sales of health-related products that are not generally 
318.8 	paid for by medical assistance and other third-party coverage.
318.9 	(f)(c) "Major spending commitment" means an expenditure in excess of $1,000,000 
318.10 	for:
318.11 	(1) acquisition of a unit of medical equipment;
318.12 	(2) a capital expenditure for a single project for the purposes of providing health 
318.13 	care services, other than for the acquisition of medical equipment;
318.14 	(3) offering a new specialized service not offered before;
318.15 	(4) planning for an activity that would qualify as a major spending commitment 
318.16 	under this paragraph; or
318.17 	(5) a project involving a combination of two or more of the activities in clauses 
318.18 	(1) to (4).
318.19 	The cost of acquisition of medical equipment, and the amount of a capital 
318.20 	expenditure, is the total cost to the provider regardless of whether the cost is distributed 
318.21 	over time through a lease arrangement or other financing or payment mechanism.
318.22 	(g)(d) "Medical equipment" means fixed and movable equipment that is used by 
318.23 	a provider in the provision of a health care service. "Medical equipment" includes, but 
318.24 	is not limited to, the following:
318.25 	(1) an extracorporeal shock wave lithotripter;
318.26 	(2) a computerized axial tomography (CAT) scanner;
318.27 	(3) a magnetic resonance imaging (MRI) unit;
318.28 	(4) a positron emission tomography (PET) scanner; and
318.29 	(5) emergency and nonemergency medical transportation equipment and vehicles.
318.30 	(h)(e) "New specialized service" means a specialized health care procedure or 
318.31 	treatment regimen offered by a provider that was not previously offered by the provider, 
318.32 	including, but not limited to:
318.33 	(1) cardiac catheterization services involving high-risk patients as defined in the 
318.34 	Guidelines for Coronary Angiography established by the American Heart Association 
318.35 	and the American College of Cardiology;
319.1 	(2) heart, heart-lung, liver, kidney, bowel, or pancreas transplantation service, or 
319.2 	any other service for transplantation of any other organ;
319.3 	(3) megavoltage radiation therapy;
319.4 	(4) open heart surgery;
319.5 	(5) neonatal intensive care services; and
319.6 	(6) any new medical technology for which premarket approval has been granted by 
319.7 	the United States Food and Drug Administration, excluding implantable and wearable 
319.8 	devices.
319.9 	(f) "Specialty care" includes but is not limited to cardiac, neurology, orthopedic, 
319.10 	obstetrics, mental health, chemical dependency, and emergency services.

319.11 	Sec. 2. Minnesota Statutes 2006, section 62J.17, subdivision 4a, is amended to read:
319.12 		Subd. 4a.Expenditure reporting. (a) A provider making a major spending 
319.13 	commitment after April 1, 1992, shall submit notification of the expenditure to the 
319.14 	commissioner and provide the commissioner with any relevant background information.
319.15 	(b) Notification must include a report, submitted within 60 days after the date of the 
319.16 	major spending commitment, using terms conforming to the definitions in section 62J.03
319.17 	and this section. Each report is subject to retrospective review and must contain: 
319.18 	(1) a detailed description of the major spending commitment, including the specific 
319.19 	dollar amount of each expenditure, and its purpose;
319.20 	(2) the date of the major spending commitment;
319.21 	(3) a statement of the expected impact that the major spending commitment will 
319.22 	have on charges by the provider to patients and third party payers;
319.23 	(4) a statement of the expected impact on the clinical effectiveness or quality of care 
319.24 	received by the patients that the provider expects to serve;
319.25 	(5) a statement of the extent to which equivalent services or technology are already 
319.26 	available to the provider's actual and potential patient population;
319.27 	(6) a statement of the distance from which the nearest equivalent services or 
319.28 	technology are already available to the provider's actual and potential population;
319.29 	(7) a statement describing the pursuit of any lawful collaborative arrangements; and
319.30 	(8) a statement of assurance that the provider will not use, purchase, or perform 
319.31 	health care technologies and procedures that are not clinically effective and cost-effective, 
319.32 	unless the technology is used for experimental or research purposes to determine whether 
319.33 	a technology or procedure is clinically effective and cost-effective.
319.34 	The provider may submit any additional information that it deems relevant.
320.1 	(c) The commissioner may request additional information from a provider for the 
320.2 	purpose of review of a report submitted by that provider, and may consider relevant 
320.3 	information from other sources. A provider shall provide any information requested by 
320.4 	the commissioner within the time period stated in the request, or within 30 days after the 
320.5 	date of the request if the request does not state a time.
320.6 	(d) If the provider fails to submit a complete and timely expenditure report, including 
320.7 	any additional information requested by the commissioner, the commissioner may make 
320.8 	the provider's subsequent major spending commitments subject to the procedures of 
320.9 	prospective review and approval under subdivision 6a.
320.10 	Each hospital, outpatient surgical center, diagnostic imaging center, and physician 
320.11 	clinic shall report annually to the commissioner on all major spending commitments, 
320.12 	in the form and manner specified by the commissioner. The report shall include the 
320.13 	following information:
320.14 	(a) a description of major spending commitments made during the previous year, 
320.15 	including the total dollar amount of major spending commitments and purpose of the 
320.16 	expenditures;
320.17 	(b) the cost of land acquisition, construction of new facilities, and renovation of 
320.18 	existing facilities;
320.19 	(c) the cost of purchased or leased medical equipment, by type of equipment;
320.20 	(d) expenditures by type for specialty care and new specialized services;
320.21 	(e) information on the amount and types of added capacity for diagnostic imaging 
320.22 	services, outpatient surgical services, and new specialized services; and
320.23 	(f) information on investments in electronic medical records systems.
320.24 	For hospitals and outpatient surgical centers, this information shall be included in reports 
320.25 	to the commissioner that are required under section 144.698. For diagnostic imaging 
320.26 	centers, this information shall be included in reports to the commissioner that are required 
320.27 	under section 144.565. For physician clinics, this information shall be included in reports 
320.28 	to the commissioner that are required under section 62J.41. For all other health care 
320.29 	providers that are subject to this reporting requirement, reports must be submitted to the 
320.30 	commissioner by March 1 each year for the preceding calendar year.

320.31 	Sec. 3. Minnesota Statutes 2006, section 62J.17, subdivision 6a, is amended to read:
320.32 		Subd. 6a.Prospective review and approval. (a) No health care provider subject 
320.33 	to prospective review under this subdivision shall make a major spending commitment 
320.34 	unless:
321.1 	(1) the provider has filed an application with the commissioner to proceed with the 
321.2 	major spending commitment and has provided all supporting documentation and evidence 
321.3 	requested by the commissioner; and
321.4 	(2) the commissioner determines, based upon this documentation and evidence, that 
321.5 	the major spending commitment is appropriate under the criteria provided in subdivision 
321.6 	5a in light of the alternatives available to the provider.
321.7 	(b) A provider subject to prospective review and approval shall submit an 
321.8 	application to the commissioner before proceeding with any major spending commitment. 
321.9 	The application must address each item listed in subdivision 4a, paragraph (a), and must 
321.10 	also include documentation to support the response to each item. The provider may 
321.11 	submit information, with supporting documentation, regarding why the major spending 
321.12 	commitment should be excepted from prospective review under subdivision 7. The 
321.13 	submission may be made either in addition to or instead of the submission of information 
321.14 	relating to the items listed in subdivision 4a, paragraph (a).
321.15 	(c) The commissioner shall determine, based upon the information submitted, 
321.16 	whether the major spending commitment is appropriate under the criteria provided 
321.17 	in subdivision 5a, or whether it should be excepted from prospective review under 
321.18 	subdivision 7. In making this determination, the commissioner may also consider relevant 
321.19 	information from other sources. At the request of the commissioner, the health technology 
321.20 	advisory committee shall convene an expert review panel made up of persons with 
321.21 	knowledge and expertise regarding medical equipment, specialized services, health care 
321.22 	expenditures, and capital expenditures to review applications and make recommendations 
321.23 	to the commissioner. The commissioner shall make a decision on the application within 
321.24 	60 days after an application is received.
321.25 	(d) The commissioner of health has the authority to issue fines, seek injunctions, and 
321.26 	pursue other remedies as provided by law.

321.27 	Sec. 4. Minnesota Statutes 2006, section 62J.17, subdivision 7, is amended to read:
321.28 		Subd. 7.Exceptions. (a) The retrospective review process as described in 
321.29 	subdivision 5a and the prospective review and approval process as described in subdivision 
321.30 	6a reporting requirement in subdivision 4adodoes not apply to:
321.31 	(1) a major spending commitment to replace existing equipment with comparable 
321.32 	equipment used for direct patient care, upgrades of equipment beyond the current model, 
321.33 	or comparable model must be reported;
322.1 	(2) (1) a major spending commitment made by a research and teaching institution 
322.2 	for purposes of conducting medical education, medical research supported or sponsored 
322.3 	by a medical school, or by a federal or foundation grant or clinical trials;
322.4 	(3) a major spending commitment to repair, remodel, or replace existing buildings or 
322.5 	fixtures if, in the judgment of the commissioner, the project does not involve a substantial 
322.6 	expansion of service capacity or a substantial change in the nature of health care services 
322.7 	provided;
322.8 	(4) (2) a major spending commitment for building maintenance including heating, 
322.9 	water, electricity, and other maintenance-related expenditures; and
322.10 	(5) (3) a major spending commitment for activities, not directly related to the 
322.11 	delivery of patient care services, including food service, laundry, housekeeping, and 
322.12 	other service-related activities; and.
322.13 	(6) a major spending commitment for computer equipment or data systems not 
322.14 	directly related to the delivery of patient care services, including computer equipment or 
322.15 	data systems related to medical record automation.
322.16 	(b) In addition to the exceptions listed in paragraph (a), the prospective review and 
322.17 	approval process described in subdivision 6a reporting requirement in subdivision 4a does 
322.18 	not apply to mergers, acquisitions, and other changes in ownership or control that, in the 
322.19 	judgment of the commissioner, do not involve a substantial expansion of service capacity 
322.20 	or a substantial change in the nature of health care services provided.

322.21 	Sec. 5. Minnesota Statutes 2006, section 62J.41, subdivision 1, is amended to read:
322.22 		Subdivision 1.Cost containment data to be collected from providers. The 
322.23 	commissioner shall require health care providers to collect and provide both patient 
322.24 	specific information and descriptive and financial aggregate data on:
322.25 	(1) the total number of patients served;
322.26 	(2) the total number of patients served by state of residence and Minnesota county;
322.27 	(3) the site or sites where the health care provider provides services;
322.28 	(4) the number of individuals employed, by type of employee, by the health care 
322.29 	provider;
322.30 	(5) the services and their costs for which no payment was received;
322.31 	(6) total revenue by type of payer or by groups of payers, including but not limited 
322.32 	to, revenue from Medicare, medical assistance, MinnesotaCare, nonprofit health service 
322.33 	plan corporations, commercial insurers, health maintenance organizations, and individual 
322.34 	patients;
322.35 	(7) revenue from research activities;
323.1 	(8) revenue from educational activities;
323.2 	(9) revenue from out-of-pocket payments by patients;
323.3 	(10) revenue from donations; and
323.4 	(11) a report on health care capital expenditures during the previous year, as required 
323.5 	by section 62J.17; and
323.6 	(11) (12) any other data required by the commissioner, including data in 
323.7 	unaggregated form, for the purposes of developing spending estimates, setting spending 
323.8 	limits, monitoring actual spending, and monitoring costs.
323.9 	The commissioner may, by rule, modify the data submission categories listed above if the 
323.10 	commissioner determines that this will reduce the reporting burden on providers without 
323.11 	having a significant negative effect on necessary data collection efforts.

323.12 	Sec. 6. Minnesota Statutes 2006, section 62J.52, subdivision 1, is amended to read:
323.13 		Subdivision 1.Uniform billing form CMS 1450. (a) On and after January 1, 
323.14 	1996, all institutional inpatient hospital services, ancillary services, institutionally owned 
323.15 	or operated outpatient services rendered by providers in Minnesota, and institutional 
323.16 	or noninstitutional home health services that are not being billed using an equivalent 
323.17 	electronic billing format, must be billed using the uniform billing form CMS 1450, except 
323.18 	as provided in subdivision 5.
323.19 	(b) The instructions and definitions for the use of the uniform billing form CMS 
323.20 	1450 shall be in accordance with the uniform billing form manual specified by the 
323.21 	commissioner. In promulgating these instructions, the commissioner may utilize the 
323.22 	manual developed by the National Uniform Billing Committee, as adopted and finalized 
323.23 	by the Minnesota Uniform Billing Committee.
323.24 	(c) Services to be billed using the uniform billing form CMS 1450 include: 
323.25 	institutional inpatient hospital services and distinct units in the hospital such as psychiatric 
323.26 	unit services, physical therapy unit services, swing bed (SNF) services, inpatient state 
323.27 	psychiatric hospital services, inpatient skilled nursing facility services, home health 
323.28 	services (Medicare part A), and hospice services; ancillary services, where benefits are 
323.29 	exhausted or patient has no Medicare part A, from hospitals, state psychiatric hospitals, 
323.30 	skilled nursing facilities, and home health (Medicare part B); institutional owned or 
323.31 	operated outpatient services such as waivered services, hospital outpatient services, 
323.32 	including ambulatory surgical center services, hospital referred laboratory services, 
323.33 	hospital-based ambulance services, and other hospital outpatient services, skilled nursing 
323.34 	facilities, home health, freestanding renal dialysis centers, comprehensive outpatient 
323.35 	rehabilitation facilities (CORF), outpatient rehabilitation facilities (ORF), rural health 
324.1 	clinics, and community mental health centers; home health services such as home health 
324.2 	intravenous therapy providers, waivered services, personal care attendants, and hospice; 
324.3 	and any other health care provider certified by the Medicare program to use this form.
324.4 	(d) On and after January 1, 1996, a mother and newborn child must be billed 
324.5 	separately, and must not be combined on one claim form.
324.6 	(e) Services provided by Medicare Critical Access Hospitals electing Method 
324.7 	II billing will be allowed an exception to this provision to allow the inclusion of the 
324.8 	professional fees on the CMS 1450.

324.9 	Sec. 7. Minnesota Statutes 2006, section 62J.52, subdivision 2, is amended to read:
324.10 		Subd. 2.Uniform billing form CMS 1500. (a) On and after January 1, 1996, all 
324.11 	noninstitutional health care services rendered by providers in Minnesota except dental 
324.12 	or pharmacy providers, that are not currently being billed using an equivalent electronic 
324.13 	billing format, must be billed using the health insurance claim form CMS 1500, except as 
324.14 	provided in subdivision 5.
324.15 	(b) The instructions and definitions for the use of the uniform billing form CMS 
324.16 	1500 shall be in accordance with the manual developed by the Administrative Uniformity 
324.17 	Committee entitled standards for the use of the CMS 1500 form, dated February 1994, 
324.18 	as further defined by the commissioner.
324.19 	(c) Services to be billed using the uniform billing form CMS 1500 include physician 
324.20 	services and supplies, durable medical equipment, noninstitutional ambulance services, 
324.21 	independent ancillary services including occupational therapy, physical therapy, speech 
324.22 	therapy and audiology, home infusion therapy, podiatry services, optometry services, 
324.23 	mental health licensed professional services, substance abuse licensed professional 
324.24 	services, nursing practitioner professional services, certified registered nurse anesthetists, 
324.25 	chiropractors, physician assistants, laboratories, medical suppliers, and other health care 
324.26 	providers such as day activity centers and freestanding ambulatory surgical centers.
324.27 	(d) Services provided by Medicare Critical Access Hospitals electing Method 
324.28 	II billing will be allowed an exception to this provision to allow the inclusion of the 
324.29 	professional fees on the CMS 1450.

324.30 	Sec. 8. Minnesota Statutes 2006, section 62J.60, subdivision 2, is amended to read:
324.31 		Subd. 2.General characteristics. (a) The Minnesota uniform health care 
324.32 	identification card must be a preprinted card constructed of plastic, paper, or any other 
324.33 	medium that conforms with ANSI and ISO 7810 physical characteristics standards. The 
324.34 	card dimensions must also conform to ANSI and ISO 7810 physical characteristics 
325.1 	standard. The use of a signature panel is optional. The uniform prescription drug 
325.2 	information contained on the card must conform with the format adopted by the NCPDP 
325.3 	and, except as provided in subdivision 3, paragraph (a), clause (2), must include all of 
325.4 	the fields required to submit a claim in conformance with the most recent pharmacy 
325.5 	identification card implementation guide produced by the NCPDP. All information 
325.6 	required to submit a prescription drug claim, exclusive of information provided on a 
325.7 	prescription that is required by law, must be included on the card in a clear, readable, and 
325.8 	understandable manner. If a health benefit plan requires a conditional or situational field, 
325.9 	as defined by the NCPDP, the conditional or situational field must conform to the most 
325.10 	recent pharmacy information card implementation guide produced by the NCPDP.
325.11 	(b) The Minnesota uniform health care identification card must have an essential 
325.12 	information window on the front side with the following data elements: card issuer name, 
325.13 	electronic transaction routing information, card issuer identification number, cardholder 
325.14 	(insured) identification number, and cardholder (insured) identification name. No optional 
325.15 	data may be interspersed between these data elements. 
325.16 	(c) Standardized labels are required next to human readable data elements and 
325.17 	must come before the human data elements.

325.18 	Sec. 9. Minnesota Statutes 2006, section 62J.60, subdivision 3, is amended to read:
325.19 		Subd. 3.Human readable data elements. (a) The following are the minimum 
325.20 	human readable data elements that must be present on the front side of the Minnesota 
325.21 	uniform health care identification card:
325.22 	(1) card issuer name or logo, which is the name or logo that identifies the card issuer. 
325.23 	The card issuer name or logo may be located at the top of the card. No standard label 
325.24 	is required for this data element;
325.25 	(2) complete electronic transaction routing information including, at a minimum, 
325.26 	the international identification number. The standardized label of this data element 
325.27 	is "RxBIN." Processor control numbers and group numbers are required if needed to 
325.28 	electronically process a prescription drug claim. The standardized label for the process 
325.29 	control numbers data element is "RxPCN" and the standardized label for the group 
325.30 	numbers data element is "RxGrp," except that if the group number data element is a 
325.31 	universal element to be used by all health care providers, the standardized label may be 
325.32 	"Grp." To conserve vertical space on the card, the international identification number and 
325.33 	the processor control number may be printed on the same line;
326.1 	 (3) cardholder (insured) identification number, which is the unique identification 
326.2 	number of the individual card holder established and defined under this section. The 
326.3 	standardized label for the data element is "ID";
326.4 	(4) cardholder (insured) identification name, which is the name of the individual 
326.5 	card holder. The identification name must be formatted as follows: first name, space, 
326.6 	optional middle initial, space, last name, optional space and name suffix. The standardized 
326.7 	label for this data element is "Name";
326.8 	(5) care type, which is the description of the group purchaser's plan product under 
326.9 	which the beneficiary is covered. The description shall include the health plan company 
326.10 	name and the plan or product name. The standardized label for this data element is 
326.11 	"Care Type";
326.12 	(6) service type, which is the description of coverage provided such as hospital, 
326.13 	dental, vision, prescription, or mental health. The standard label for this data element 
326.14 	is "Svc Type"; and
326.15 	(7) provider/clinic name, which is the name of the primary care clinic the card 
326.16 	holder is assigned to by the health plan company. The standard label for this field is 
326.17 	"PCP." This information is mandatory only if the health plan company assigns a specific 
326.18 	primary care provider to the card holder.
326.19 	(b) The following human readable data elements shall be present on the back side 
326.20 	of the Minnesota uniform health care identification card. These elements must be left 
326.21 	justified, and no optional data elements may be interspersed between them:
326.22 	(1) claims submission names and addresses, which are the names and addresses of 
326.23 	the entity or entities to which claims should be submitted. If different destinations are 
326.24 	required for different types of claims, this must be labeled;
326.25 	(2) telephone numbers and names that pharmacies and other health care providers 
326.26 	may call for assistance. These telephone numbers and names are required on the back 
326.27 	side of the card only if one of the contacts listed in clause (3) cannot provide pharmacies 
326.28 	or other providers with assistance or with the telephone numbers and names of contacts 
326.29 	for assistance; and
326.30 	(3) telephone numbers and names; which are the telephone numbers and names of the 
326.31 	following contacts with a standardized label describing the service function as applicable:
326.32 	(i) eligibility and benefit information;
326.33 	(ii) utilization review;
326.34 	(iii) precertification; or
326.35 	(iv) customer services.
327.1 	(c) The following human readable data elements are mandatory on the back 
327.2 	side of the Minnesota uniform health care identification card for health maintenance 
327.3 	organizations:
327.4 	(1) emergency care authorization telephone number or instruction on how to receive 
327.5 	authorization for emergency care. There is no standard label required for this information; 
327.6 	and
327.7 	(2) one of the following:
327.8 	(i) telephone number to call to appeal to or file a complaint with the commissioner of 
327.9 	health; or
327.10 	(ii) for persons enrolled under section 256B.69, 256D.03, or 256L.12, the telephone 
327.11 	number to call to file a complaint with the ombudsperson designated by the commissioner 
327.12 	of human services under section 256B.69 and the address to appeal to the commissioner of 
327.13 	human services. There is no standard label required for this information. 
327.14 	(d) All human readable data elements not required under paragraphs (a) to (c) are 
327.15 	optional and may be used at the issuer's discretion.

327.16 	Sec. 10. Minnesota Statutes 2006, section 62Q.80, subdivision 3, is amended to read:
327.17 		Subd. 3.Approval.  (a) Prior to the operation of a community-based health care 
327.18 	coverage program, a community-based health initiative shall submit to the commissioner 
327.19 	of health for approval the community-based health care coverage program developed by 
327.20 	the initiative. The commissioner shall only approve a program that has been awarded 
327.21 	a community access program grant from the United States Department of Health and 
327.22 	Human Services. The commissioner shall ensure that the program meets the federal grant 
327.23 	requirements and any requirements described in this section and is actuarially sound based 
327.24 	on a review of appropriate records and methods utilized by the community-based health 
327.25 	initiative in establishing premium rates for the community-based health care coverage 
327.26 	program. 
327.27 	(b) Prior to approval, the commissioner shall also ensure that:
327.28 	(1) the benefits offered comply with subdivision 8 and that there are adequate 
327.29 	numbers of health care providers participating in the community-based health network to 
327.30 	deliver the benefits offered under the program;
327.31 	(2) the activities of the program are limited to activities that are exempt under this 
327.32 	section or otherwise from regulation by the commissioner of commerce;
327.33 	(3) the complaint resolution process meets the requirements of subdivision 10; and 
327.34 	(4) the data privacy policies and procedures comply with state and federal law.

328.1 	Sec. 11. Minnesota Statutes 2006, section 62Q.80, subdivision 4, is amended to read:
328.2 		Subd. 4.Establishment.  (a) The initiative shall establish and operate upon approval 
328.3 	by the commissioner of health a community-based health care coverage program. The 
328.4 	operational structure established by the initiative shall include, but is not limited to: 
328.5 	(1) establishing a process for enrolling eligible individuals and their dependents; 
328.6 	(2) collecting and coordinating premiums from enrollees and employers of enrollees;
328.7 	(3) providing payment to participating providers; 
328.8 	(4) establishing a benefit set according to subdivision 8 and establishing premium 
328.9 	rates and cost-sharing requirements; 
328.10 	(5) creating incentives to encourage primary care and wellness services; and 
328.11 	(6) initiating disease management services, as appropriate. 
328.12 	(b) The payments collected under paragraph (a), clause (2), may be used to capture 
328.13 	available federal funds.

328.14 	Sec. 12. Minnesota Statutes 2006, section 62Q.80, subdivision 13, is amended to read:
328.15 		Subd. 13.Report.  (a) The initiative shall submit quarterly status reports to the 
328.16 	commissioner of health on January 15, April 15, July 15, and October 15 of each year, 
328.17 	with the first report due January 15, 2007 2008. The status report shall include:
328.18 	(1) the financial status of the program, including the premium rates, cost per member 
328.19 	per month, claims paid out, premiums received, and administrative expenses; 
328.20 	(2) a description of the health care benefits offered and the services utilized; 
328.21 	(3) the number of employers participating, the number of employees and dependents 
328.22 	covered under the program, and the number of health care providers participating; 
328.23 	(4) a description of the health outcomes to be achieved by the program and a status 
328.24 	report on the performance measurements to be used and collected; and 
328.25 	(5) any other information requested by the commissioner of health or commerce or 
328.26 	the legislature. 
328.27 	(b) The initiative shall contract with an independent entity to conduct an evaluation 
328.28 	of the program to be submitted to the commissioners of health and commerce and the 
328.29 	legislature by January 15, 2009 2010. The evaluation shall include:
328.30 	(1) an analysis of the health outcomes established by the initiative and the 
328.31 	performance measurements to determine whether the outcomes are being achieved;
328.32 	(2) an analysis of the financial status of the program, including the claims to 
328.33 	premiums loss ratio and utilization and cost experience; 
328.34 	(3) the demographics of the enrollees, including their age, gender, family income, 
328.35 	and the number of dependents; 
329.1 	(4) the number of employers and employees who have been denied access to the 
329.2 	program and the basis for the denial; 
329.3 	(5) specific analysis on enrollees who have aggregate medical claims totaling over 
329.4 	$5,000 per year, including data on the enrollee's main diagnosis and whether all the 
329.5 	medical claims were covered by the program; 
329.6 	(6) number of enrollees referred to state public assistance programs; 
329.7 	(7) a comparison of employer-subsidized health coverage provided in a comparable 
329.8 	geographic area to the designated community-based geographic area served by the 
329.9 	program, including, to the extent available: 
329.10 	(i) the difference in the number of employers with 50 or fewer employees offering 
329.11 	employer-subsidized health coverage; 
329.12 	(ii) the difference in uncompensated care being provided in each area; and
329.13 	(iii) a comparison of health care outcomes and measurements established by the 
329.14 	initiative; and 
329.15 	(8) any other information requested by the commissioner of health or commerce.

329.16 	Sec. 13. Minnesota Statutes 2006, section 62Q.80, subdivision 14, is amended to read:
329.17 		Subd. 14.Sunset. This section expires December 31, 2011 2012.

329.18 	Sec. 14. Minnesota Statutes 2006, section 144.552, is amended to read:
329.19 	144.552 PUBLIC INTEREST REVIEW.
329.20 	(a) The following entities must submit a plan to the commissioner:
329.21 	(1) a hospital seeking to increase its number of licensed beds; or
329.22 	(2) an organization seeking to obtain a hospital license  and notified by the 
329.23 	commissioner under section 144.553, subdivision 1, paragraph (c), that it is subject 
329.24 	to this section. 
329.25 	The plan must include information that includes an explanation of how the expansion will 
329.26 	meet the public's interest. When submitting a plan to the commissioner, an applicant 
329.27 	shall pay the commissioner for the commissioner's cost of reviewing and monitoring the 
329.28 	plan, as determined by the commissioner and notwithstanding section 16A.1283. Money 
329.29 	received by the commissioner under this section is appropriated to the commissioner for 
329.30 	the purpose of administering this section. 
329.31 	(b) Plans submitted under this section shall include detailed information necessary 
329.32 	for the commissioner to review the plan and reach a finding. The commissioner may 
329.33 	request additional information from the hospital submitting a plan under this section and 
330.1 	from others affected by the plan that the commissioner deems necessary to review the 
330.2 	plan and make a finding.
330.3 	(c) The commissioner shall review the plan and, within 90 days, but no more than 
330.4 	six months if extenuating circumstances apply, issue a finding on whether the plan is in 
330.5 	the public interest. In making the recommendation, the commissioner shall consider 
330.6 	issues including but not limited to:
330.7 	(1) whether the new hospital or hospital beds are needed to provide timely access to 
330.8 	care or access to new or improved services;
330.9 	(2) the financial impact of the new hospital or hospital beds on existing acute-care 
330.10 	hospitals that have emergency departments in the region;
330.11 	(3) how the new hospital or hospital beds will affect the ability of existing hospitals 
330.12 	in the region to maintain existing staff;
330.13 	(4) the extent to which the new hospital or hospital beds will provide services to 
330.14 	nonpaying or low-income patients relative to the level of services provided to these groups 
330.15 	by existing hospitals in the region; and
330.16 	(5) the views of affected parties.
330.17 	(d) If the plan is being submitted by an existing hospital seeking authority to 
330.18 	construct a new hospital, the commissioner shall also consider:
330.19 	(1) the ability of the applicant to maintain the applicant's current level of community 
330.20 	benefit as defined in section 144.699, subdivision 5, at the existing facility; and
330.21 	(2) the impact on the workforce at the existing facility including the applicant's 
330.22 	plan for: 
330.23 	(i) transitioning current workers to the new facility;
330.24 	(ii) retraining and employment security for current workers; and
330.25 	(iii) addressing the impact of layoffs at the existing facility on affected workers.
330.26 	(e) Prior to making a recommendation, the commissioner shall conduct a public 
330.27 	hearing in the affected hospital service area to take testimony from interested persons.
330.28 	(d) (f) Upon making a recommendation under paragraph (c), the commissioner shall 
330.29 	provide a copy of the recommendation to the chairs of the house and senate committees 
330.30 	having jurisdiction over health and human services policy and finance.
330.31 	(g) If an exception to the moratorium is approved under section 144.551 after a 
330.32 	review under this section, the commissioner shall monitor the implementation of the 
330.33 	exception up to completion of the construction project. Thirty days after completion of 
330.34 	the construction project, the hospital shall submit to the commissioner a report on how 
330.35 	the construction has met the provisions of the plan originally submitted under the public 
331.1 	interest review process or a plan submitted pursuant to section 144.551, subdivision 1, 
331.2 	paragraph (b), clause (20).

331.3 	Sec. 15. Minnesota Statutes 2006, section 144.553, subdivision 3, is amended to read:
331.4 		Subd. 3.Process when hospital need is determined. (a) If the commissioner 
331.5 	determines that a new hospital is needed in the proposed service area, the commissioner 
331.6 	shall notify the applicants of that finding and shall select the applicant determined under 
331.7 	the process established in this subdivision to be best able to provide services consistent 
331.8 	with the review criteria established in this subdivision.
331.9 	(b) The commissioner shall:
331.10 	(1) determine market-specific criteria that shall be used to evaluate all proposals. 
331.11 	The criteria must include standards regarding:
331.12 	(i) access to care;
331.13 	(ii) quality of care;
331.14 	(iii) cost of care; and
331.15 	(iv) overall project feasibility;
331.16 	(2) establish additional criteria at the commissioner's discretion. In establishing the 
331.17 	criteria, the commissioner shall consider the need for:
331.18 	(i) mental health services in the service area, including both inpatient and outpatient 
331.19 	services for adults, adolescents, and children; 
331.20 	(ii) a significant commitment to providing uncompensated care, including discounts 
331.21 	for uninsured patients and coordination with other providers of care to low-income 
331.22 	uninsured persons; and 
331.23 	(iii) coordination with other hospitals so that specialized services are not 
331.24 	unnecessarily duplicated and are provided in sufficient volume to ensure the maintenance 
331.25 	of high-quality care; and
331.26 	(3) define a service area for the proposed hospital. The service area shall consist of:
331.27 	(i) in the 11-county metropolitan area, in St. Cloud, and in Duluth, the zip codes 
331.28 	located within a 20-mile radius of the proposed new hospital location; and 
331.29 	(ii) in the remainder of the state, the zip codes within a 30-mile radius of the 
331.30 	proposed new hospital location.
331.31 	(c) If the plan is being submitted by an existing hospital, the commissioner shall 
331.32 	also consider:
331.33 	(1) the ability of the applicant to maintain the applicant's current level of community 
331.34 	benefit as defined in section 144.699, subdivision 5, at the existing facility; and
332.1 	(2) the impact on the workforce at the existing facility including the applicant's 
332.2 	plan for: 
332.3 	(i) transitioning current workers to the new facility;
332.4 	(ii) retraining and employment security for current workers; and
332.5 	(iii) addressing the impact of layoffs at the existing facility on affected workers.
332.6 	(d) The commissioner shall publish the criteria determined under paragraph
332.7 	paragraphs  (b) and (c) in the State Register within 60 days of the determination under 
332.8 	subdivision 2. Once published, the criteria shall not be modified with respect to the 
332.9 	particular project and applicants to which they apply. The commissioner shall publish with 
332.10 	the criteria guidelines for a proposal and submission review process.
332.11 	(d) (e) For 60 days after the publication under paragraph (c) (d), the commissioner 
332.12 	shall accept proposals to construct a hospital from organizations that have submitted a 
332.13 	letter of intent under subdivision 1, paragraph (a), or have notified the commissioner under 
332.14 	subdivision 1, paragraph (b). The proposal must include a plan for the new hospital and 
332.15 	evidence of compliance with the criteria specified under paragraph paragraphs (b) and (c). 
332.16 	Once submitted, the proposal may not be revised except:
332.17 	(1) to submit corrections of material facts; or
332.18 	(2) in response to a request from the commissioner to provide clarification or 
332.19 	further information. 
332.20 	(e) (f) The commissioner shall determine within 90 days of the deadline for 
332.21 	applications under paragraph (d) (e), which applicant has demonstrated that it is best able 
332.22 	to provide services consistent with the published criteria. The commissioner shall make 
332.23 	this determination by order following a hearing according to this paragraph. The hearing 
332.24 	shall not constitute or be considered to be a contested case hearing under chapter 14 and 
332.25 	shall be conducted solely under the procedures specified in this paragraph. The hearing 
332.26 	shall commence upon at least 30 days' notice to the applicants by the commissioner. 
332.27 	The hearing may be conducted by the commissioner or by a person designated by the 
332.28 	commissioner. The designee may be an administrative law judge. The purpose of the 
332.29 	hearing shall be to receive evidence to assist the commissioner in determining which 
332.30 	applicant has demonstrated that it best meets the published criteria.
332.31 	The parties to the hearing shall consist only of those applicants who have submitted 
332.32 	a completed application. Each applicant shall have the right to be represented by 
332.33 	counsel, to present evidence deemed relevant by the commissioner, and to examine and 
332.34 	cross-examine witnesses. Persons who are not parties to the proceeding but who wish to 
332.35 	present comments or submit information may do so in the manner determined by the 
332.36 	commissioner or the commissioner's designee. Any person who is not a party shall have 
333.1 	no right to examine or cross-examine witnesses. The commissioner may participate as an 
333.2 	active finder of fact in the hearing and may ask questions to elicit information or clarify 
333.3 	answers or responses.
333.4 	(f) (g) Prior to making a determination selecting an application, the commissioner 
333.5 	shall hold a public hearing in the proposed hospital service area to accept comments from 
333.6 	members of the public. The commissioner shall take this information into consideration in 
333.7 	making the determination. The commissioner may shall appoint an advisory committee, 
333.8 	including legislators and local elected officials who represent the service area and outside 
333.9 	experts to assist in the recommendation process. The legislative appointees shall include, 
333.10 	at a minimum, the chairs of the senate and house of representatives committees with 
333.11 	jurisdiction over health care policy. The commissioner shall issue an order selecting an 
333.12 	application following the closing of the record of the hearing as determined by the hearing 
333.13 	officer. The commissioner's order shall include a statement of the reasons the selected 
333.14 	application best meets the published criteria.
333.15 	(g) (h) Within 30 days following the determination under paragraph (e) (f), the 
333.16 	commissioner shall recommend the selected proposal to the legislature.
333.17 	(i) If an exception to the moratorium is approved under section 144.551 after a 
333.18 	review under this section, the commissioner shall monitor the implementation of the 
333.19 	exception up to completion of the construction project. Thirty days after completion of 
333.20 	the construction project, the hospital shall submit to the commissioner a report on how 
333.21 	the construction has met the provisions of the plan originally submitted under the public 
333.22 	interest review process or a plan submitted pursuant to section 144.551, subdivision 1, 
333.23 	paragraph (b), clause (20).

333.24 	Sec. 16. Minnesota Statutes 2006, section 144.565, is amended to read:
333.25 	144.565 DIAGNOSTIC IMAGING FACILITIES.
333.26 		Subdivision 1.Utilization and services data; economic and financial interests.
 333.27 	The commissioner shall require diagnostic imaging facilities and providers of diagnostic 
333.28 	imaging services in Minnesota to annually report by March 1 each year for the preceding 
333.29 	fiscal year to the commissioner, in the form and manner specified by the commissioner:
333.30 	(1) utilization data for each health plan company and each public program, 
333.31 	including workers' compensation, as follows: of diagnostic imaging services as defined 
333.32 	in subdivision 4, paragraph (b);
333.33 	(i) the number of computerized tomography (CT) procedures performed;
333.34 	(ii) the number of magnetic resonance imaging (MRI) procedures performed; and
333.35 	(iii) the number of positron emission tomography (PET) procedures performed; and
334.1 	(2) the names of all physicians with any financial or economic interest excluding 
334.2 	salaried physicians, unless the physicians' salary is adjusted for volume of service, and all 
334.3 	other individuals with a ten percent or greater financial or economic interest in the facility.;
334.4 	(3) the location where procedures were performed;
334.5 	(4) the number of units of each type of fixed, portable, and mobile scanner used at 
334.6 	each location;
334.7 	(5) the average number of hours per month each mobile scanner was operated at 
334.8 	each location;
334.9 	(6) the number of hours per month each scanner was leased, if applicable;
334.10 	(7) the total number of diagnostic imaging procedures billed for by the provider at 
334.11 	each location, by type of diagnostic imaging service as defined in subdivision 4, paragraph 
334.12 	(b); and
334.13 	(8) a report on major health care capital expenditures during the previous year, as 
334.14 	required by section 62J.17.
334.15 		Subd. 2.Commissioner's right to inspect records. If the report is not filed or 
334.16 	the commissioner of health has reason to believe the report is incomplete or false, the 
334.17 	commissioner shall have the right to inspect diagnostic imaging facility books, audits, 
334.18 	and records.
334.19 		Subd. 3.Separate reports. For a diagnostic imaging facility that is not attached 
334.20 	or not contiguous to a hospital or a hospital affiliate, the commissioner shall require 
334.21 	the information in subdivision 1 be reported separately for each detached diagnostic 
334.22 	imaging facility as part of the report required under section 144.702. If any entity owns 
334.23 	more than one diagnostic imaging facility, that entity must report by individual facility. 
334.24 	Reports must include only services that were billed by the provider of diagnostic imaging 
334.25 	services submitting the report. If a diagnostic imaging facility leases capacity, technical 
334.26 	services, or professional services to one or more other providers of diagnostic imaging 
334.27 	services, each provider must submit a separate annual report to the commissioner for all 
334.28 	diagnostic imaging services that it provided and billed. The owner of the leased capacity 
334.29 	must provide a report listing the names and addresses of providers to whom the diagnostic 
334.30 	imaging services and equipment were leased.
334.31 		Subd. 4.Definitions. For purposes of this section, the following terms have the 
334.32 	meanings given:
334.33 	(a) "Diagnostic imaging facility" means a health care facility that providesis not 
334.34 	a hospital or location licensed as a hospital which offers diagnostic imaging services 
334.35 	through the use of ionizing radiation or other imaging technique including, but not limited 
334.36 	to magnetic resonance imaging (MRI) or computerized tomography (CT) scan on a 
335.1 	freestanding or mobile basis in Minnesota, regardless of whether the equipment used 
335.2 	to provide the service is owned or leased. For the purposes of this section, diagnostic 
335.3 	imaging facility includes, but is not limited to, facilities such as a physician's office, clinic, 
335.4 	mobile transport vehicle, outpatient imaging center, or surgical center.
335.5 	(b) "Diagnostic imaging service" means the use of ionizing radiation or other 
335.6 	imaging technique on a human patient including, but not limited to, magnetic resonance 
335.7 	imaging (MRI) or computerized tomography (CT), positron emission tomography (PET), 
335.8 	or single photon emission computerized tomography (SPECT) scans using fixed, portable, 
335.9 	or mobile equipment.
335.10 	(b)(c) "Financial or economic interest" means a direct or indirect:
335.11 	(1) equity or debt security issued by an entity, including, but not limited to, shares of 
335.12 	stock in a corporation, membership in a limited liability company, beneficial interest in 
335.13 	a trust, units or other interests in a partnership, bonds, debentures, notes or other equity 
335.14 	interests or debt instruments, or any contractual arrangements;
335.15 	(2) membership, proprietary interest, or co-ownership with an individual, group, or 
335.16 	organization to which patients, clients, or customers are referred to; or
335.17 	(3) employer-employee or independent contractor relationship, including, but not 
335.18 	limited to, those that may occur in a limited partnership, profit-sharing arrangement, or 
335.19 	other similar arrangement with any facility to which patients are referred, including any 
335.20 	compensation between a facility and a health care provider, the group practice of which 
335.21 	the provider is a member or employee or a related party with respect to any of them.
335.22 	(c)(d) "Freestanding Fixed equipment" means a stationary diagnostic imaging 
335.23 	facility that is not located within a: machine installed in a permanent location.
335.24 	(1) hospital;
335.25 	(2) location licensed as a hospital; or
335.26 	(3) physician's office or clinic where the professional practice of medicine by 
335.27 	licensed physicians is the primary purpose and not the provision of ancillary services 
335.28 	such as diagnostic imaging.
335.29 	(d)(e) "Mobile equipment" means a diagnostic imaging facility that is transported to 
335.30 	various sites not including movement within a hospital or a physician's office or clinic
335.31 	machine in a self-contained transport vehicle designed to be brought to a temporary offsite 
335.32 	location to perform diagnostic imaging services.
335.33 	(f) "Portable equipment" means a diagnostic imaging machine designed to be 
335.34 	temporarily transported within a permanent location to perform diagnostic imaging 
335.35 	services.
336.1 	(g) "Provider of diagnostic imaging services" means a diagnostic imaging facility 
336.2 	or an entity that offers and bills for diagnostic imaging services at a facility owned or 
336.3 	leased by the entity.
336.4 		Subd. 5.Reports open to public inspection. All reports filed pursuant to this 
336.5 	section shall be open to public inspection.

336.6 	Sec. 17. [144.585] METHICILLIN-RESISTANT STAPHYLOCOCCUS AUREUS 
336.7 	CONTROL PROGRAMS.
336.8 	In order to improve the prevention of hospital-associated infections due 
336.9 	to methicillin-resistant Staphylococcus aureus ("MRSA"), every hospital shall 
336.10 	establish an MRSA control program that meets Minnesota Department of Health 
336.11 	MRSA recommendations as published January 15, 2008. In developing the MRSA 
336.12 	recommendations, the Department of Health shall consider the following infection control 
336.13 	practices: 
336.14 	(1) identification of MRSA-colonized patients in all intensive care units, or other 
336.15 	at-risk patients identified by the hospital; 
336.16 	(2) isolation of identified MRSA-colonized or MRSA-infected patients in an 
336.17 	appropriate manner; 
336.18 	(3) adherence to hand hygiene requirements; and 
336.19 	(4) monitor trends in the incidence of MRSA in the hospital over time and modify 
336.20 	interventions if MRSA infection rates do not decrease.
336.21 	The Department of Health shall review the MRSA recommendations on an annual basis 
336.22 	and revise the recommendations as necessary, in accordance with available scientific data.

336.23 	Sec. 18. Minnesota Statutes 2006, section 144.651, subdivision 9, is amended to read:
336.24 		Subd. 9.Information about treatment. Patients and residents shall be given by 
336.25 	their physicians complete and current information concerning their diagnosis, treatment, 
336.26 	alternatives, risks, and prognosis as required by the physician's legal duty to disclose. This 
336.27 	information shall be in terms and language the patients or residents can reasonably be 
336.28 	expected to understand. Patients and residents may be accompanied by a family member 
336.29 	or other chosen representative, or both. This information shall include the likely medical 
336.30 	or major psychological results of the treatment and its alternatives. In cases where it is 
336.31 	medically inadvisable, as documented by the attending physician in a patient's or resident's 
336.32 	medical record, the information shall be given to the patient's or resident's guardian or 
336.33 	other person designated by the patient or resident as a representative. Individuals have the 
336.34 	right to refuse this information.
337.1 	Every patient or resident suffering from any form of breast cancer shall be fully 
337.2 	informed, prior to or at the time of admission and during her stay, of all alternative 
337.3 	effective methods of treatment of which the treating physician is knowledgeable, including 
337.4 	surgical, radiological, or chemotherapeutic treatments or combinations of treatments and 
337.5 	the risks associated with each of those methods.

337.6 	Sec. 19. Minnesota Statutes 2006, section 144.651, subdivision 10, is amended to read:
337.7 		Subd. 10.Participation in planning treatment; notification of family members.
 337.8 	(a) Patients and residents shall have the right to participate in the planning of their 
337.9 	health care. This right includes the opportunity to discuss treatment and alternatives 
337.10 	with individual caregivers, the opportunity to request and participate in formal care 
337.11 	conferences, and the right to include a family member or other chosen representative, or 
337.12 	both. In the event that the patient or resident cannot be present, a family member or other 
337.13 	representative chosen by the patient or resident may be included in such conferences. A 
337.14 	chosen representative may include a doula of the patient's choice.
337.15 	(b) If a patient or resident who enters a facility is unconscious or comatose or is 
337.16 	unable to communicate, the facility shall make reasonable efforts as required under 
337.17 	paragraph (c) to notify either a family member or a person designated in writing by the 
337.18 	patient as the person to contact in an emergency that the patient or resident has been 
337.19 	admitted to the facility. The facility shall allow the family member to participate in 
337.20 	treatment planning, unless the facility knows or has reason to believe the patient or 
337.21 	resident has an effective advance directive to the contrary or knows the patient or resident 
337.22 	has specified in writing that they do not want a family member included in treatment 
337.23 	planning. After notifying a family member but prior to allowing a family member to 
337.24 	participate in treatment planning, the facility must make reasonable efforts, consistent 
337.25 	with reasonable medical practice, to determine if the patient or resident has executed an 
337.26 	advance directive relative to the patient or resident's health care decisions. For purposes of 
337.27 	this paragraph, "reasonable efforts" include:
337.28 	(1) examining the personal effects of the patient or resident;
337.29 	(2) examining the medical records of the patient or resident in the possession 
337.30 	of the facility;
337.31 	(3) inquiring of any emergency contact or family member contacted under this 
337.32 	section whether the patient or resident has executed an advance directive and whether the 
337.33 	patient or resident has a physician to whom the patient or resident normally goes for 
337.34 	care; and
338.1 	(4) inquiring of the physician to whom the patient or resident normally goes for care, 
338.2 	if known, whether the patient or resident has executed an advance directive. If a facility 
338.3 	notifies a family member or designated emergency contact or allows a family member 
338.4 	to participate in treatment planning in accordance with this paragraph, the facility is not 
338.5 	liable to the patient or resident for damages on the grounds that the notification of the 
338.6 	family member or emergency contact or the participation of the family member was 
338.7 	improper or violated the patient's privacy rights.
338.8 	(c) In making reasonable efforts to notify a family member or designated emergency 
338.9 	contact, the facility shall attempt to identify family members or a designated emergency 
338.10 	contact by examining the personal effects of the patient or resident and the medical records 
338.11 	of the patient or resident in the possession of the facility. If the facility is unable to notify 
338.12 	a family member or designated emergency contact within 24 hours after the admission, 
338.13 	the facility shall notify the county social service agency or local law enforcement agency 
338.14 	that the patient or resident has been admitted and the facility has been unable to notify a 
338.15 	family member or designated emergency contact. The county social service agency and 
338.16 	local law enforcement agency shall assist the facility in identifying and notifying a family 
338.17 	member or designated emergency contact. A county social service agency or local law 
338.18 	enforcement agency that assists a facility in implementing this subdivision is not liable 
338.19 	to the patient or resident for damages on the grounds that the notification of the family 
338.20 	member or emergency contact or the participation of the family member was improper or 
338.21 	violated the patient's privacy rights.

338.22 	Sec. 20. Minnesota Statutes 2006, section 144.651, subdivision 26, is amended to read:
338.23 		Subd. 26.Right to associate. (a) Residents may meet with and receive visitors 
338.24 	and participate in activities of commercial, religious, political, as defined in section 
338.25 	203B.11 and community groups without interference at their discretion if the activities 
338.26 	do not infringe on the right to privacy of other residents or are not programmatically 
338.27 	contraindicated. This includes:
338.28 	(1) the right to join with other individuals within and outside the facility to work for 
338.29 	improvements in long-term care;
338.30 	(2) the right to visitation by an individual the patient has appointed as the patient's 
338.31 	health care agent under chapter 145C;
338.32 	(3) the right to visitation and health care decision making by an individual designated 
338.33 	by the patient under paragraph (c).
338.34 	(b) Upon admission to a facility where federal law prohibits unauthorized disclosure 
338.35 	of patient or resident identifying information to callers and visitors, the patient or 
339.1 	resident, or the legal guardian or conservator of the patient or resident, shall be given the 
339.2 	opportunity to authorize disclosure of the patient's or resident's presence in the facility 
339.3 	to callers and visitors who may seek to communicate with the patient or resident. To the 
339.4 	extent possible, the legal guardian or conservator of a patient or resident shall consider the 
339.5 	opinions of the patient or resident regarding the disclosure of the patient's or resident's 
339.6 	presence in the facility. 
339.7 	(c) Upon admission to a facility, the patient or resident, or the legal guardian 
339.8 	or conservator of the patient or resident, must be given the opportunity to designate 
339.9 	a person who is not related who will have the status of the patient's next of kin with 
339.10 	respect to visitation and making a health care decision. A designation must be included 
339.11 	in the patient's health record. With respect to making a health care decision, a health 
339.12 	care directive or appointment of a health care agent under chapter 145C prevails over a 
339.13 	designation made under this paragraph. The unrelated person may also be identified as 
339.14 	such by the patient or by the patient's family.

339.15 	Sec. 21. Minnesota Statutes 2006, section 144.699, is amended by adding a subdivision 
339.16 	to read:
339.17 		Subd. 5.Annual reports on community benefit, community care amounts, and 
339.18 	state program underfunding. (a) For each hospital reporting health care cost information 
339.19 	under section 144.698 or 144.702, the commissioner shall report annually on the 
339.20 	hospital's community benefit and community care, including detailed information on each 
339.21 	component of those costs as defined in this subdivision. The information shall be reported 
339.22 	in terms of total dollars and as a percentage of total operating costs for each hospital.
339.23 	(b) For purposes of this subdivision, "community benefit" means the costs of 
339.24 	community care, underpayment for services provided under state health care programs, 
339.25 	research costs, community health services costs, financial and in-kind contributions, costs 
339.26 	of community building activities, costs of community benefit operations, education costs, 
339.27 	and the cost of operating subsidized services. The cost of bad debts and underpayment for 
339.28 	Medicare services are not included in the calculation of community benefit.
339.29 	(c) For purposes of this subdivision, "community care" means the costs for medical 
339.30 	care that a hospital has determined is charity care as defined under Minnesota Rules, part 
339.31 	4650.0115, or for which the hospital determines after billing for the services that there is a 
339.32 	demonstrated inability to pay. Any costs forgiven under a hospital's community care plan 
339.33 	or under section 62J.83 may be counted in the hospital's calculation of community care. 
339.34 	Bad debt expenses and discounted charges available to the uninsured shall not be included 
340.1 	in the calculation of community care. The amount of community care is the value of costs 
340.2 	incurred and not the charges made for services. 
340.3 	(d) For purposes of this subdivision, "underpayment for services provided under 
340.4 	state health care programs" means the difference between hospital costs and public 
340.5 	program payments.

340.6 	Sec. 22. Minnesota Statutes 2006, section 145C.05, is amended to read:
340.7 	145C.05 SUGGESTED FORM; PROVISIONS THAT MAY BE INCLUDED.
340.8 		Subdivision 1.Content. A health care directive executed pursuant to this chapter 
340.9 	may, but need not, be in the form contained in section 145C.16. 
340.10 		Subd. 2.Provisions that may be included. (a) A health care directive may include 
340.11 	provisions consistent with this chapter, including, but not limited to:
340.12 	(1) the designation of one or more alternate health care agents to act if the named 
340.13 	health care agent is not reasonably available to serve;
340.14 	(2) directions to joint health care agents regarding the process or standards by which 
340.15 	the health care agents are to reach a health care decision for the principal, and a statement 
340.16 	whether joint health care agents may act independently of one another;
340.17 	(3) limitations, if any, on the right of the health care agent or any alternate health 
340.18 	care agents to receive, review, obtain copies of, and consent to the disclosure of the 
340.19 	principal's medical records or to visit the principal when the principal is a patient in a 
340.20 	health care facility;
340.21 	(4) limitations, if any, on the nomination of the health care agent as guardian for 
340.22 	purposes of sections 524.5-202, 524.5-211, 524.5-302, and 524.5-303; 
340.23 	(5) a document of gift for the purpose of making an anatomical gift, as set forth in 
340.24 	sections 525.921 to 525.9224, or an amendment to, revocation of, or refusal to make 
340.25 	an anatomical gift; 
340.26 	(6) a declaration regarding intrusive mental health treatment under section 253B.03, 
340.27 	subdivision 6d, or a statement that the health care agent is authorized to give consent for 
340.28 	the principal under section 253B.04, subdivision 1a; 
340.29 	(7) a funeral directive as provided in section 149A.80, subdivision 2; 
340.30 	(8) limitations, if any, to the effect of dissolution or annulment of marriage or 
340.31 	termination of domestic partnership on the appointment of a health care agent under 
340.32 	section 145C.09, subdivision 2; 
340.33 	(9) specific reasons why a principal wants a health care provider or an employee 
340.34 	of a health care provider attending the principal to be eligible to act as the principal's 
340.35 	health care agent;
341.1 	(10) health care instructions by a woman of child bearing age regarding how she 
341.2 	would like her pregnancy, if any, to affect health care decisions made on her behalf; and
341.3 	(11) health care instructions regarding artificially administered nutrition or hydration.
341.4 	(b) A health care directive may include a statement of the circumstances under 
341.5 	which the directive becomes effective other than upon the judgment of the principal's 
341.6 	attending physician in the following situations:
341.7 	(1) a principal who in good faith generally selects and depends upon spiritual means 
341.8 	or prayer for the treatment or care of disease or remedial care and does not have an 
341.9 	attending physician, may include a statement appointing an individual who may determine 
341.10 	the principal's decision-making capacity; and
341.11 	(2) a principal who in good faith does not generally select a physician or a health 
341.12 	care facility for the principal's health care needs may include a statement appointing an 
341.13 	individual who may determine the principal's decision-making capacity, provided that if 
341.14 	the need to determine the principal's capacity arises when the principal is receiving care 
341.15 	under the direction of an attending physician in a health care facility, the determination 
341.16 	must be made by an attending physician after consultation with the appointed individual.
341.17 	If a person appointed under clause (1) or (2) is not reasonably available and the 
341.18 	principal is receiving care under the direction of an attending physician in a health care 
341.19 	facility, an attending physician shall determine the principal's decision-making capacity.
341.20 	(c) A health care directive may authorize a health care agent to make health care 
341.21 	decisions for a principal even though the principal retains decision-making capacity.

341.22 	Sec. 23. Minnesota Statutes 2006, section 145C.07, is amended by adding a 
341.23 	subdivision to read:
341.24 		Subd. 5.Visitation. A health care agent may visit the principal when the 
341.25 	principal is a patient in a health care facility regardless of whether the principal retains 
341.26 	decision-making capacity, unless:
341.27 	(1) the principal has otherwise specified in the health care directive;
341.28 	(2) a principal who retains decision-making capacity indicates otherwise; or
341.29 	(3) a health care provider reasonably determines that the principal must be isolated 
341.30 	from all visitors or that the presence of the health care agent would endanger the health or 
341.31 	safety of the principal, other patients, or the facility in which the care is being provided.

341.32 	Sec. 24. Minnesota Statutes 2006, section 148.6445, subdivision 1, is amended to read:
341.33 		Subdivision 1.Initial licensure fee. The initial licensure fee for occupational 
341.34 	therapists is $180 $145. The initial licensure fee for occupational therapy assistants is 
342.1 	$100 $80. The commissioner shall prorate fees based on the number of quarters remaining 
342.2 	in the biennial licensure period.

342.3 	Sec. 25. Minnesota Statutes 2006, section 148.6445, subdivision 2, is amended to read:
342.4 		Subd. 2.Licensure renewal fee. The biennial licensure renewal fee for 
342.5 	occupational therapists is $180 $145. The biennial licensure renewal fee for occupational 
342.6 	therapy assistants is $100 $80.

342.7 	Sec. 26. [148.785] FEES.
342.8 	The fees charged by the board are fixed at the following rates:
342.9 	(1) application fee for physical therapists and physical therapist assistants, $100;
342.10 	(2) annual licensure for physical therapists and physical therapist assistants, $60;
342.11 	(3) licensure renewal late fee, $20;
342.12 	(4) temporary permit, $25;
342.13 	(5) duplicate license or registration, $20;
342.14 	(6) certification letter, $25;
342.15 	(7) education or training program approval, $100;
342.16 	(8) report creation and generation, $60 per hour billed in quarter-hour increments 
342.17 	with a quarter-hour minimum; and
342.18 	(9) examination administration:
342.19 	(i) half day, $50; and
342.20 	(ii) full day, $80.

342.21 	Sec. 27. [148.995] DEFINITIONS.
342.22 		Subdivision 1.Applicability. The definitions in this section apply to sections 
342.23 	148.995 to 148.997.
342.24 		Subd. 2.Certified doula. "Certified doula" means an individual who has received 
342.25 	a certification to perform doula services from the International Childbirth Education 
342.26 	Association, the Doulas of North America (DONA), the Association of Labor Assistants 
342.27 	and Childbirth Educators (ALACE), Birthworks, Childbirth and Postpartum Professional 
342.28 	Association (CAPPA), or Childbirth International.
342.29 		Subd. 3.Commissioner. "Commissioner" means the commissioner of health.
342.30 		Subd. 4.Doula services. "Doula services" means emotional and physical support 
342.31 	during pregnancy, labor, birth, and postpartum.

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

343.1 	Sec. 28. [148.996] REGISTRY.
343.2 		Subdivision 1.Establishment. The commissioner of health shall maintain a registry 
343.3 	of certified doulas who have met the requirements listed in subdivision 2.
343.4 		Subd. 2.Qualifications. The commissioner shall include on the registry any 
343.5 	individual who:
343.6 	(1) submits an application on a form provided by the commissioner. The form must 
343.7 	include the applicant's name, address, and contact information;
343.8 	(2) maintains a current certification from one of the organizations listed in section 
343.9 	146B.01, subdivision 2; and
343.10 	(3) pays the fees required under section 148.997.
343.11 		Subd. 3.Criminal background check. The commissioner shall conduct a 
343.12 	criminal background check by reviewing the Bureau of Criminal Apprehension's Web 
343.13 	site. If the review indicates that an applicant has been engaged in criminal behavior, 
343.14 	the commissioner shall indicate this on the registry and provide a link to the Bureau of 
343.15 	Criminal Apprehension's Web site.
343.16 		Subd. 4.Renewal. Inclusion on the registry maintained by the commissioner is 
343.17 	valid for three years. At the end of the three-year period, the certified doula may submit a 
343.18 	new application to remain on the doula registry by meeting the requirements described in 
343.19 	subdivision 2.
343.20 		Subd. 5.Public access. The commissioner shall provide a link to the registry 
343.21 	on the Department of Health's Web site.

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

343.23 	Sec. 29. [148.997] FEES.
343.24 		Subdivision 1.Fees. (a) The application fee is $130.
343.25 	(b) The criminal background check fee is $6.
343.26 		Subd. 2.Nonrefundable fees. The fees in this section are nonrefundable.
343.27 		Subd. 3.Deposit. Fees received under sections 148.995 to 148.997 shall be 
343.28 	deposited in the state government special revenue fund.

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

343.30 	Sec. 30. Minnesota Statutes 2006, section 148B.53, subdivision 3, is amended to read:
343.31 		Subd. 3.Fee. Nonrefundable fees are as follows:
343.32 	(1) initial license application fee for licensed professional counseling (LPC) - $250
343.33 	$150;
344.1 	(2) initial license fee for LPC - $250;
344.2 	(3) annual active license renewal fee for LPC - $200 $250 or equivalent;
344.3 	(3) (4) annual inactive license renewal fee for LPC - $100 $125;
344.4 	(5) initial license application fee for licensed professional clinical counseling 
344.5 	(LPCC) - $150;
344.6 	(6) initial license fee for LPCC - $250;
344.7 	(7) annual active license renewal fee for LPCC - $250 or equivalent;
344.8 	(8) annual inactive license renewal fee for LPCC - $125;
344.9 	(4) (9) license renewal late fee - $100 per month or portion thereof;
344.10 	(5) (10) copy of board order or stipulation - $10;
344.11 	(6) (11) certificate of good standing or license verification - $10 $25;
344.12 	(7) (12) duplicate certificate fee - $10 $25;
344.13 	(8) (13) professional firm renewal fee - $25;
344.14 	(9) (14) sponsor application for approval of a continuing education course - $60;
344.15 	(15) initial registration fee - $50; and
344.16 	(10) (16) annual registration renewal fee - $25; and
344.17 	(17) approved supervisor application processing fee - $30.

344.18 	Sec. 31. Minnesota Statutes 2006, section 149A.52, subdivision 3, is amended to read:
344.19 		Subd. 3.Application procedure; documentation; initial inspection. An applicant 
344.20 	for a license to operate a crematory shall submit to the commissioner a completed 
344.21 	application. A completed application includes:
344.22 	(1) a completed application form, as provided by the commissioner;
344.23 	(2) proof of business form and ownership; and
344.24 	(3) proof of liability insurance coverage or other financial documentation, as 
344.25 	determined by the commissioner, that demonstrates the applicant's ability to respond in 
344.26 	damages for liability arising from the ownership, maintenance, management, or operation 
344.27 	of a crematory.
344.28 	Upon receipt of the application and appropriate fee, the commissioner shall review 
344.29 	and verify all information. Upon completion of the verification process and resolution 
344.30 	of any deficiencies in the application information, the commissioner shall conduct an 
344.31 	initial inspection of the premises to be licensed. After the inspection and resolution of 
344.32 	any deficiencies found and any reinspections as may be necessary, the commissioner shall 
344.33 	make a determination, based on all the information available, to grant or deny licensure. If 
344.34 	the commissioner's determination is to grant the license, the applicant shall be notified and 
344.35 	the license shall issue and remain valid for a period prescribed on the license, but not to 
345.1 	exceed one calendar year from the date of issuance of the license. If the commissioner's 
345.2 	determination is to deny the license, the commissioner must notify the applicant, in 
345.3 	writing, of the denial and provide the specific reason for denial.

345.4 	Sec. 32. [149A.65] FEES.
345.5 		Subdivision 1.Generally. This section establishes the fees for registrations, 
345.6 	examinations, initial and renewal licenses, and late fees authorized under the provisions 
345.7 	of this chapter.
345.8 		Subd. 2.Mortuary science fees. Fees for mortuary science are:
345.9 	(1) $50 for the initial and renewal registration of a mortuary science intern;
345.10 	(2) $100 for the mortuary science examination;
345.11 	(3) $125 for issuance of initial and renewal mortuary science licenses;
345.12 	(4) $25 late fee charge for a license renewal; and
345.13 	(5) $200 for issuing a mortuary science license by endorsement.
345.14 		Subd. 3.Funeral directors. The license renewal fee for funeral directors is $125. 
345.15 	The late fee charge for a license renewal is $25.
345.16 		Subd. 4.Funeral establishments. The initial and renewal fee for funeral 
345.17 	establishments is $300. The late fee charge for a license renewal is $25.
345.18 		Subd. 5.Crematories. The initial and renewal fee for a crematory is $300. The 
345.19 	late fee charge for a license renewal is $25.

345.20 	Sec. 33. Minnesota Statutes 2006, section 149A.97, subdivision 7, is amended to read:
345.21 		Subd. 7.Reports to commissioner. Every funeral provider lawfully doing business 
345.22 	in Minnesota that accepts funds under subdivision 2 must make a complete annual report 
345.23 	to the commissioner. The reports may be on forms provided by the commissioner or 
345.24 	substantially similar forms containing, at least, identification and the state of each trust 
345.25 	account, including all transactions involving principal and accrued interest, and must be 
345.26 	filed by March 31 of the calendar year following the reporting year along with a filing 
345.27 	fee of $15 $25 for each report. Fees shall be paid to the commissioner of finance, state of 
345.28 	Minnesota, for deposit in the state government special revenue fund in the state treasury. 
345.29 	Reports must be signed by an authorized representative of the funeral provider and 
345.30 	notarized under oath. All reports to the commissioner shall be reviewed for account 
345.31 	inaccuracies or possible violations of this section. If the commissioner has a reasonable 
345.32 	belief to suspect that there are account irregularities or possible violations of this section, 
345.33 	the commissioner shall report that belief, in a timely manner, to the state auditor. The 
345.34 	commissioner shall also file an annual letter with the state auditor disclosing whether or 
346.1 	not any irregularities or possible violations were detected in review of the annual trust 
346.2 	fund reports filed by the funeral providers. This letter shall be filed with the state auditor 
346.3 	by May 31 of the calendar year following the reporting year.

346.4 	Sec. 34. Minnesota Statutes 2006, section 157.16, subdivision 1, is amended to read:
346.5 		Subdivision 1.License required annually. A license is required annually for every 
346.6 	person, firm, or corporation engaged in the business of conducting a food and beverage 
346.7 	service establishment, hotel, motel, lodging establishment, or resort. Any person wishing 
346.8 	to operate a place of business licensed in this section shall first make application, pay the 
346.9 	required fee specified in this section, and receive approval for operation, including plan 
346.10 	review approval. Seasonal and temporary food stands and special event food stands are 
346.11 	not required to submit plans. Nonprofit organizations operating a special event food 
346.12 	stand with multiple locations at an annual one-day event shall be issued only one license. 
346.13 	Application shall be made on forms provided by the commissioner and shall require 
346.14 	the applicant to state the full name and address of the owner of the building, structure, 
346.15 	or enclosure, the lessee and manager of the food and beverage service establishment, 
346.16 	hotel, motel, lodging establishment, or resort; the name under which the business is to 
346.17 	be conducted; and any other information as may be required by the commissioner to 
346.18 	complete the application for license.

346.19 	Sec. 35. INJUNCTIVE RELIEF REPORT.
 346.20 	The commissioner of health shall present to the 2008 legislature, by December 15, 
346.21 	2007, recommendations to fund the cost of bringing actions for injunctive relief under 
346.22 	Minnesota Statutes, section 144G.02, subdivision 2, paragraph (b).

346.23 	Sec. 36. HEARING AID DISPENSER FEES.
 346.24 	Fees relating to hearing aid dispensers, as provided in Minnesota Statutes, section 
346.25 	153A.17, may not be increased until after the Department of Health provides a report to 
346.26 	the legislature regarding the need and reasons for fee increases.

346.27 	Sec. 37. APPROPRIATION.
 346.28 	$18,000 in fiscal year 2008 and $5,000 in fiscal year 2009 are appropriated to the 
346.29 	commissioner of health from the state government special revenue fund to implement the 
346.30 	doula registry in Minnesota Statutes, sections 148.995 to 148.997.

346.31 	Sec. 38.  REPEALER.
 347.1 	Minnesota Rules, part 4610.2800, is repealed.

347.2 	ARTICLE 10
347.3 	DEPARTMENT OF HEALTH

347.4 	Section 1. Minnesota Statutes 2006, section 62Q.80, is amended by adding a 
347.5 	subdivision to read:
347.6 		Subd. 1a.Demonstration project. The commissioner of health shall award a 
347.7 	demonstration project grant to a community-based health care initiative to develop and 
347.8 	operate a community-based health care coverage program to operate within Carlton, Cook, 
347.9 	Lake, and St. Louis County. The demonstration project shall extend for five years and 
347.10 	must comply with the requirements of this section.

347.11 	Sec. 2. [144.291] MINNESOTA HEALTH RECORDS ACT.
347.12 		Subdivision 1.Short title. Sections 144.291 to 144.298 may be cited as the 
347.13 	Minnesota Health Records Act.
347.14 		Subd. 2.Definitions. For the purposes of sections 144.291 to 144.298, the following 
347.15 	terms have the meanings given.
347.16 	(a) Group purchaser. "Group purchaser" has the meaning given in section 62J.03, 
347.17 	subdivision 6.
347.18 	(b) Health information exchange. "Health information exchange" means a legal 
347.19 	arrangement between health care providers and group purchasers to enable and oversee the 
347.20 	business and legal issues involved in the electronic exchange of health records between 
347.21 	the entities for the delivery of patient care.
347.22 	(c) Health record. "Health record" means any information, whether oral or recorded 
347.23 	in any form or medium, that relates to the past, present, or future physical or mental health 
347.24 	or condition of a patient; the provision of health care to a patient; or the past, present, or 
347.25 	future payment for the provision of health care to a patient.
347.26 	(d) Identifying information. "Identifying information" means the patient's name, 
347.27 	address, date of birth, gender, parent's or guardian's name regardless of the age of the 
347.28 	patient, and other nonclinical data which can be used to uniquely identify a patient.
347.29 	(e) Individually identifiable form. "Individually identifiable form" means a form in 
347.30 	which the patient is or can be identified as the subject of the health records.
347.31 	(f) Medical emergency. "Medical emergency" means medically necessary care 
347.32 	which is immediately needed to preserve life, prevent serious impairment to bodily 
347.33 	functions, organs, or parts, or prevent placing the physical or mental health of the patient 
347.34 	in serious jeopardy.
348.1 	(g) Patient. "Patient" means a natural person who has received health care services 
348.2 	from a provider for treatment or examination of a medical, psychiatric, or mental 
348.3 	condition, the surviving spouse and parents of a deceased patient, or a person the patient 
348.4 	appoints in writing as a representative, including a health care agent acting according to 
348.5 	chapter 145C, unless the authority of the agent has been limited by the principal in the 
348.6 	principal's health care directive. Except for minors who have received health care services 
348.7 	under sections 144.341 to 144.347, in the case of a minor, patient includes a parent or 
348.8 	guardian, or a person acting as a parent or guardian in the absence of a parent or guardian.
348.9 	(h) Provider. "Provider" means: 
348.10 	(1) any person who furnishes health care services and is regulated to furnish the 
348.11 	services under chapter 147, 147A, 147B, 147C, 147D, 148, 148B, 148C, 148D, 150A, 
348.12 	151, 153, or 153A; 
348.13 	(2) a home care provider licensed under section 144A.46; 
348.14 	(3) a health care facility licensed under this chapter or chapter 144A; 
348.15 	(4) a physician assistant registered under chapter 147A; and 
348.16 	(5) an unlicensed mental health practitioner regulated under sections 148B.60 to 
348.17 	148B.71.
348.18 	(i) Record locator service. "Record locator service" means an electronic index of 
348.19 	patient identifying information that directs providers in a health information exchange to 
348.20 	the location of patient health records held by providers and group purchasers.
348.21 	(j) Related health care entity. "Related health care entity" means an affiliate, as 
348.22 	defined in section 144.6521, subdivision 3, paragraph (b), of the provider releasing the 
348.23 	health records.

348.24 	Sec. 3. [144.292] PATIENT RIGHTS.
348.25 		Subdivision 1.Scope. Patients have the rights specified in this section regarding the 
348.26 	treatment the patient receives and the patient's health record.
348.27 		Subd. 2.Patient access. Upon request, a provider shall supply to a patient complete 
348.28 	and current information possessed by that provider concerning any diagnosis, treatment, 
348.29 	and prognosis of the patient in terms and language the patient can reasonably be expected 
348.30 	to understand.
348.31 		Subd. 3.Additional patient rights. A patient's right specified in this section and 
348.32 	sections 144.293 to 144.298 are in addition to the rights specified in sections 144.651 and 
348.33 	144.652 and any other provision of law relating to the access of a patient to the patient's 
348.34 	health records.
349.1 		Subd. 4.Notice of rights; information on release. A provider shall provide to 
349.2 	patients, in a clear and conspicuous manner, a written notice concerning practices and 
349.3 	rights with respect to access to health records. The notice must include an explanation of:
349.4 	(1) disclosures of health records that may be made without the written consent of the 
349.5 	patient, including the type of records and to whom the records may be disclosed; and
349.6 	(2) the right of the patient to have access to and obtain copies of the patient's health 
349.7 	records and other information about the patient that is maintained by the provider.
349.8 	The notice requirements of this subdivision are satisfied if the notice is included with 
349.9 	the notice and copy of the patient and resident bill of rights under section 144.652 or if it 
349.10 	is displayed prominently in the provider's place of business. The commissioner of health 
349.11 	shall develop the notice required in this subdivision and publish it in the State Register.
349.12 		Subd. 5.Copies of health records to patients. Except as provided in section 
349.13 	144.296, upon a patient's written request, a provider, at a reasonable cost to the patient, 
349.14 	shall promptly furnish to the patient:
349.15 	(1) copies of the patient's health record, including but not limited to laboratory 
349.16 	reports, x-rays, prescriptions, and other technical information used in assessing the 
349.17 	patient's health conditions; or
349.18 	(2) the pertinent portion of the record relating to a condition specified by the patient.
349.19 	With the consent of the patient, the provider may instead furnish only a summary 
349.20 	of the record. The provider may exclude from the health record written speculations 
349.21 	about the patient's health condition, except that all information necessary for the patient's 
349.22 	informed consent must be provided.
349.23 		Subd. 6.Cost. (a) When a patient requests a copy of the patient's record for 
349.24 	purposes of reviewing current medical care, the provider must not charge a fee.
349.25 	(b) When a provider or its representative makes copies of patient records upon a 
349.26 	patient's request under this section, the provider or its representative may charge the 
349.27 	patient or the patient's representative no more than 75 cents per page, plus $10 for time 
349.28 	spent retrieving and copying the records, unless other law or a rule or contract provide for 
349.29 	a lower maximum charge. This limitation does not apply to x-rays. The provider may 
349.30 	charge a patient no more than the actual cost of reproducing x-rays, plus no more than 
349.31 	$10 for the time spent retrieving and copying the x-rays.
349.32 	(c) The respective maximum charges of 75 cents per page and $10 for time provided 
349.33 	in this subdivision are in effect for calendar year 1992 and may be adjusted annually each 
349.34 	calendar year as provided in this subdivision. The permissible maximum charges shall 
349.35 	change each year by an amount that reflects the change, as compared to the previous year, 
350.1 	in the Consumer Price Index for all Urban Consumers, Minneapolis-St. Paul (CPI-U), 
350.2 	published by the Department of Labor.
350.3 	(d) A provider or its representative must not charge a fee to provide copies of records 
350.4 	requested by a patient or the patient's authorized representative if the request for copies 
350.5 	of records is for purposes of appealing a denial of Social Security disability income or 
350.6 	Social Security disability benefits under title II or title XVI of the Social Security Act. For 
350.7 	the purpose of further appeals, a patient may receive no more than two medical record 
350.8 	updates without charge, but only for medical record information previously not provided. 
350.9 	For purposes of this paragraph, a patient's authorized representative does not include units 
350.10 	of state government engaged in the adjudication of Social Security disability claims.
350.11 		Subd. 7.Withholding health records from patient. (a) If a provider, as defined in 
350.12 	section 144.291, subdivision 2, paragraph (h), clause (1), reasonably determines that the 
350.13 	information is detrimental to the physical or mental health of the patient, or is likely to 
350.14 	cause the patient to inflict self harm, or to harm another, the provider may withhold the 
350.15 	information from the patient and may supply the information to an appropriate third party 
350.16 	or to another provider, as defined in section 144.291, subdivision 2, paragraph (h), clause 
350.17 	(1). The other provider or third party may release the information to the patient.
350.18 	(b) A provider, as defined in section 144.291, subdivision 2, paragraph (h), clause 
350.19 	(3), shall release information upon written request unless, prior to the request, a provider, 
350.20 	as defined in section 144.291, subdivision 2, paragraph (h), clause (1), has designated and 
350.21 	described a specific basis for withholding the information as authorized by paragraph (a).
350.22 		Subd. 8.Form. By January 1, 2008, the Department of Health must develop a form 
350.23 	that may be used by a patient to request access to health records under this section. A form 
350.24 	developed by the commissioner must be accepted by a provider as a legally enforceable 
350.25 	request under this section.

350.26 	Sec. 4. [144.293] RELEASE OR DISCLOSURE OF HEALTH RECORDS.
350.27 		Subdivision 1.Release or disclosure of health records. Health records can be 
350.28 	released or disclosed as specified in subdivisions 2 to 9 and sections 144.294 and 144.295.
350.29 		Subd. 2.Patient consent to release of records. A provider, or a person who 
350.30 	receives health records from a provider, may not release a patient's health records to a 
350.31 	person without:
350.32 	(1) a signed and dated consent from the patient or the patient's legally authorized 
350.33 	representative authorizing the release; 
350.34 	(2) specific authorization in law; or
351.1 	(3) a representation from a provider that holds a signed and dated consent from the 
351.2 	patient authorizing the release.
351.3 		Subd. 3.Release from one provider to another. A patient's health record, 
351.4 	including, but not limited to, laboratory reports, x-rays, prescriptions, and other technical 
351.5 	information used in assessing the patient's condition, or the pertinent portion of the record 
351.6 	relating to a specific condition, or a summary of the record, shall promptly be furnished to 
351.7 	another provider upon the written request of the patient. The written request shall specify 
351.8 	the name of the provider to whom the health record is to be furnished. The provider who 
351.9 	furnishes the health record or summary may retain a copy of the materials furnished. The 
351.10 	patient shall be responsible for the reasonable costs of furnishing the information.
351.11 		Subd. 4.Duration of consent. Except as provided in this section, a consent is 
351.12 	valid for one year or for a lesser period specified in the consent or for a different period 
351.13 	provided by law.
351.14 		Subd. 5.Exceptions to consent requirement. This section does not prohibit the 
351.15 	release of health records:
351.16 	(1) for a medical emergency when the provider is unable to obtain the patient's 
351.17 	consent due to the patient's condition or the nature of the medical emergency;
351.18 	(2) to other providers within related health care entities when necessary for the 
351.19 	current treatment of the patient; or
351.20 	(3) to a health care facility licensed by this chapter, chapter 144A, or to the same 
351.21 	types of health care facilities licensed by this chapter and chapter 144A that are licensed 
351.22 	in another state when a patient:
351.23 	(i) is returning to the health care facility and unable to provide consent; or
351.24 	(ii) who resides in the health care facility, has services provided by an outside 
351.25 	resource under Code of Federal Regulations, title 42, section 483.75(h), and is unable 
351.26 	to provide consent.
351.27 		Subd. 6.Consent does not expire. Notwithstanding subdivision 4, if a patient 
351.28 	explicitly gives informed consent to the release of health records for the purposes and 
351.29 	restrictions in clauses (1) and (2), the consent does not expire after one year for:
351.30 	(1) the release of health records to a provider who is being advised or consulted with 
351.31 	in connection with the releasing provider's current treatment of the patient;
351.32 	(2) the release of health records to an accident and health insurer, health service plan 
351.33 	corporation, health maintenance organization, or third-party administrator for purposes of 
351.34 	payment of claims, fraud investigation, or quality of care review and studies, provided that:
351.35 	(i) the use or release of the records complies with sections 72A.49 to 72A.505;
352.1 	(ii) further use or release of the records in individually identifiable form to a person 
352.2 	other than the patient without the patient's consent is prohibited; and
352.3 	(iii) the recipient establishes adequate safeguards to protect the records from 
352.4 	unauthorized disclosure, including a procedure for removal or destruction of information 
352.5 	that identifies the patient.
352.6 		Subd. 7.Exception to consent. Subdivision 2 does not apply to the release of health 
352.7 	records to the commissioner of health or the Health Data Institute under chapter 62J, 
352.8 	provided that the commissioner encrypts the patient identifier upon receipt of the data.
352.9 		Subd. 8.Record locator service. (a) A provider or group purchaser may release 
352.10 	patient identifying information and information about the location of the patient's health 
352.11 	records to a record locator service without consent from the patient, unless the patient 
352.12 	has elected to be excluded from the service under paragraph (d). The Department of 
352.13 	Health may not access the record locator service or receive data from the record locator 
352.14 	service. Only a provider may have access to patient identifying information in a record 
352.15 	locator service. Except in the case of a medical emergency, a provider participating in a 
352.16 	health information exchange using a record locator service does not have access to patient 
352.17 	identifying information and information about the location of the patient's health records 
352.18 	unless the patient specifically consents to the access. A consent does not expire but may 
352.19 	be revoked by the patient at any time by providing written notice of the revocation to the 
352.20 	provider. 
352.21 	(b) A health information exchange maintaining a record locator service must 
352.22 	maintain an audit log of providers accessing information in a record locator service that 
352.23 	at least contains information on: 
352.24 	(1) the identity of the provider accessing the information; 
352.25 	(2) the identity of the patient whose information was accessed by the provider; and 
352.26 	(3) the date the information was accessed. 
352.27 	(c) No group purchaser may in any way require a provider to participate in a record 
352.28 	locator service as a condition of payment or participation.
352.29 	(d) A provider or an entity operating a record locator service must provide 
352.30 	a mechanism under which patients may exclude their identifying information and 
352.31 	information about the location of their health records from a record locator service. At 
352.32 	a minimum, a consent form that permits a provider to access a record locator service 
352.33 	must include a conspicuous check-box option that allows a patient to exclude all of the 
352.34 	patient's information from the record locator service. A provider participating in a health 
352.35 	information exchange with a record locator service who receives a patient's request to 
352.36 	exclude all of the patient's information from the record locator service or to have a specific 
353.1 	provider contact excluded from the record locator service is responsible for removing that 
353.2 	information from the record locator service.
353.3 		Subd. 9.Documentation of release. (a) In cases where a provider releases health 
353.4 	records without patient consent as authorized by law, the release must be documented in 
353.5 	the patient's health record. In the case of a release under section 144.294, subdivision 2, the 
353.6 	documentation must include the date and circumstances under which the release was made, 
353.7 	the person or agency to whom the release was made, and the records that were released.
353.8 	(b) When a health record is released using a representation from a provider that 
353.9 	holds a consent from the patient, the releasing provider shall document: 
353.10 	(1) the provider requesting the health records; 
353.11 	(2) the identity of the patient;
353.12 	(3) the health records requested; and 
353.13 	(4) the date the health records were requested.
353.14 		Subd. 10.Warranties regarding consents, requests, and disclosures. (a) When 
353.15 	requesting health records using consent, a person warrants that the consent:
353.16 	(1) contains no information known to the person to be false; and
353.17 	(2) accurately states the patient's desire to have health records disclosed or that there 
353.18 	is specific authorization in law.
353.19 	(b) When requesting health records using consent, or a representation of holding a 
353.20 	consent, a provider warrants that the request:
353.21 	(1) contains no information known to the provider to be false;
353.22 	(2) accurately states the patient's desire to have health records disclosed or that 
353.23 	there is specific authorization in law; and
353.24 	(3) does not exceed any limits imposed by the patient in the consent.
353.25 	(c) When disclosing health records, a person releasing health records warrants that 
353.26 	the person:
353.27 	(1) has complied with the requirements of this section regarding disclosure of 
353.28 	health records;
353.29 	(2) knows of no information related to the request that is false; and
353.30 	(3) has complied with the limits set by the patient in the consent.

353.31 	Sec. 5. [144.294] RECORDS RELATING TO MENTAL HEALTH.
353.32 		Subdivision 1.Provider inquiry. Upon the written request of a spouse, parent, 
353.33 	child, or sibling of a patient being evaluated for or diagnosed with mental illness, a 
353.34 	provider shall inquire of a patient whether the patient wishes to authorize a specific 
353.35 	individual to receive information regarding the patient's current and proposed course of 
354.1 	treatment. If the patient so authorizes, the provider shall communicate to the designated 
354.2 	individual the patient's current and proposed course of treatment. Section 144.293, 
354.3 	subdivisions 2 and 4, apply to consents given under this subdivision.
354.4 		Subd. 2.Disclosure to law enforcement agency. Notwithstanding section 144.293, 
354.5 	subdivisions 2 and 4, a provider must disclose health records relating to a patient's mental 
354.6 	health to a law enforcement agency if the law enforcement agency provides the name 
354.7 	of the patient and communicates that the:
354.8 	(1) patient is currently involved in an emergency interaction with the law 
354.9 	enforcement agency; and
354.10 	(2) disclosure of the records is necessary to protect the health or safety of the patient 
354.11 	or of another person. 
354.12 	The scope of disclosure under this subdivision is limited to the minimum necessary 
354.13 	for law enforcement to respond to the emergency. A law enforcement agency that obtains 
354.14 	health records under this subdivision shall maintain a record of the requestor, the provider 
354.15 	of the information, and the patient's name. Health records obtained by a law enforcement 
354.16 	agency under this subdivision are private data on individuals as defined in section 13.02, 
354.17 	subdivision 12, and must not be used by law enforcement for any other purpose.
354.18 		Subd. 3.Records release for family and caretaker; mental health care. (a) 
354.19 	Notwithstanding section 144.293, a provider providing mental health care and treatment 
354.20 	may disclose health record information described in paragraph (b) about a patient to a 
354.21 	family member of the patient or other person who requests the information if:
354.22 	(1) the request for information is in writing;
354.23 	(2) the family member or other person lives with, provides care for, or is directly 
354.24 	involved in monitoring the treatment of the patient;
354.25 	(3) the involvement under clause (2) is verified by the patient's mental health care 
354.26 	provider, the patient's attending physician, or a person other than the person requesting the 
354.27 	information, and is documented in the patient's medical record;
354.28 	(4) before the disclosure, the patient is informed in writing of the request, the name 
354.29 	of the person requesting the information, the reason for the request, and the specific 
354.30 	information being requested;
354.31 	(5) the patient agrees to the disclosure, does not object to the disclosure, or is 
354.32 	unable to consent or object, and the patient's decision or inability to make a decision is 
354.33 	documented in the patient's medical record; and
354.34 	(6) the disclosure is necessary to assist in the provision of care or monitoring of the 
354.35 	patient's treatment. 
355.1 	(b) The information disclosed under this paragraph is limited to diagnosis, admission 
355.2 	to or discharge from treatment, the name and dosage of the medications prescribed, side 
355.3 	effects of the medication, consequences of failure of the patient to take the prescribed 
355.4 	medication, and a summary of the discharge plan. 
355.5 	(c) If a provider reasonably determines that providing information under this 
355.6 	subdivision would be detrimental to the physical or mental health of the patient or is 
355.7 	likely to cause the patient to inflict self harm or to harm another, the provider must not 
355.8 	disclose the information. 
355.9 	(d) This subdivision does not apply to disclosures for a medical emergency or 
355.10 	to family members as authorized or required under subdivision 1 or section 144.293, 
355.11 	subdivision 5, clause (1).

355.12 	Sec. 6. [144.295] DISCLOSURE OF HEALTH RECORDS FOR EXTERNAL 
355.13 	RESEARCH.
355.14 		Subdivision 1.Methods of release. (a) Notwithstanding section 144.293, 
355.15 	subdivisions 2 and 4, health records may be released to an external researcher solely for 
355.16 	purposes of medical or scientific research only as follows:
355.17 	(1) health records generated before January 1, 1997, may be released if the patient 
355.18 	has not objected or does not elect to object after that date;
355.19 	(2) for health records generated on or after January 1, 1997, the provider must:
355.20 	(i) disclose in writing to patients currently being treated by the provider that health 
355.21 	records, regardless of when generated, may be released and that the patient may object, in 
355.22 	which case the records will not be released; and
355.23 	(ii) use reasonable efforts to obtain the patient's written general authorization that 
355.24 	describes the release of records in item (i), which does not expire but may be revoked or 
355.25 	limited in writing at any time by the patient or the patient's authorized representative; 
355.26 	(3) the provider must advise the patient of the rights specified in clause (4); and
355.27 	(4) the provider must, at the request of the patient, provide information on how the 
355.28 	patient may contact an external researcher to whom the health record was released and 
355.29 	the date it was released.
355.30 	(b) Authorization may be established if an authorization is mailed at least two 
355.31 	times to the patient's last known address with a postage prepaid return envelope and a 
355.32 	conspicuous notice that the patient's medical records may be released if the patient does 
355.33 	not object, and at least 60 days have expired since the second notice was sent.
355.34 		Subd. 2.Duties of researcher. In making a release for research purposes, the 
355.35 	provider shall make a reasonable effort to determine that:
356.1 	(1) the use or disclosure does not violate any limitations under which the record 
356.2 	was collected;
356.3 	(2) the use or disclosure in individually identifiable form is necessary to accomplish 
356.4 	the research or statistical purpose for which the use or disclosure is to be made;
356.5 	(3) the recipient has established and maintains adequate safeguards to protect the 
356.6 	records from unauthorized disclosure, including a procedure for removal or destruction of 
356.7 	information that identifies the patient; and
356.8 	(4) further use or release of the records in individually identifiable form to a person 
356.9 	other than the patient without the patient's consent is prohibited.

356.10 	Sec. 7. [144.296] COPIES OF VIDEOTAPES.
356.11 	A provider may not release a copy of a videotape of a child victim or alleged victim 
356.12 	of physical or sexual abuse without a court order under section 13.03, subdivision 6, or 
356.13 	as provided in section 611A.90. This section does not limit the right of a patient to view 
356.14 	the videotape.

356.15 	Sec. 8. [144.297] INDEPENDENT MEDICAL EXAMINATION.
356.16 	Sections 144.291 to 144.298 apply to the subject and provider of an independent 
356.17 	medical examination requested by or paid for by a third party. Notwithstanding section 
356.18 	144.293, a provider may release health records created as part of an independent medical 
356.19 	examination to the third party who requested or paid for the examination.

356.20 	Sec. 9. [144.298] PENALTIES.
356.21 		Subdivision 1.Licensing action. A violation of sections 144.291 to 144.298 may 
356.22 	be grounds for disciplinary action against a provider by the appropriate licensing board 
356.23 	or agency.
356.24 		Subd. 2.Liability of provider or other person. A person who does any of the 
356.25 	following is liable to the patient for compensatory damages caused by an unauthorized 
356.26 	release, plus costs and reasonable attorney fees:
356.27 	(1) negligently or intentionally requests or releases a health record in violation 
356.28 	of sections 144.291 to 144.297;
356.29 	(2) forges a signature on a consent form or materially alters the consent form of 
356.30 	another person without the person's consent; or
356.31 	(3) obtains a consent form or the health records of another person under false 
356.32 	pretenses.
357.1 		Subd. 3.Liability for record locator service. A patient is entitled to receive 
357.2 	compensatory damages plus costs and reasonable attorney fees if a health information 
357.3 	exchange maintaining a record locator service, or an entity maintaining a record locator 
357.4 	service for a health information exchange, negligently or intentionally violates the 
357.5 	provisions of section 144.293, subdivision 8.

357.6 	Sec. 10. Minnesota Statutes 2006, section 144.3345, is amended to read:
357.7 	144.3345 INTERCONNECTED ELECTRONIC HEALTH RECORD 
357.8 	GRANTS.
357.9 		Subdivision 1.Definitions. The following definitions are used for the purposes 
357.10 	of this section.
357.11 	(a) "Eligible community e-health collaborative" means an existing or newly 
357.12 	established collaborative to support the adoption and use of interoperable electronic 
357.13 	health records. A collaborative must consist of at least three two or more eligible health 
357.14 	care entities in at least two of the categories listed in paragraph (b) and have a focus on 
357.15 	interconnecting the members of the collaborative for secure and interoperable exchange of 
357.16 	health care information.
357.17 	(b) "Eligible health care entity" means one of the following:
357.18 	(1) community clinics, as defined under section 145.9268; 
357.19 	(2) hospitals eligible for rural hospital capital improvement grants, as defined 
357.20 	in section 144.148;
357.21 	(3) physician clinics located in a community with a population of less than 50,000 
357.22 	according to United States Census Bureau statistics and outside the seven-county 
357.23 	metropolitan area; 
357.24 	(4) nursing facilities licensed under sections 144A.01 to 144A.27; 
357.25 	(5) community health boards or boards of health as established under chapter 145A; 
357.26 	(6) nonprofit entities with a purpose to provide health information exchange 
357.27 	coordination governed by a representative, multi-stakeholder board of directors; and
357.28 	(7) other providers of health or health care services approved by the commissioner 
357.29 	for which interoperable electronic health record capability would improve quality of 
357.30 	care, patient safety, or community health.
357.31 		Subd. 2.Grants authorized. The commissioner of health shall award grants to:
357.32 	(a) eligible community e-health collaborative projects to improve the implementation 
357.33 	and use of interoperable electronic health records including but not limited to the 
357.34 	following projects:
358.1 	(1) collaborative efforts to host and support fully functional interoperable electronic 
358.2 	health records in multiple care settings; 
358.3 	(2) electronic medication history and electronic patient registration medical history
358.4 	information; 
358.5 	(3) electronic personal health records for persons with chronic diseases and for 
358.6 	prevention services; 
358.7 	(4) rural and underserved community models for electronic prescribing; and
358.8 	(5) enabling modernize local public health information systems to rapidly and 
358.9 	electronically exchange information needed to participate in community e-health 
358.10 	collaboratives or for public health emergency preparedness and response.; and
358.11 	(6) implement regional or community-based health information exchange 
358.12 	organizations;
358.13 	(b) community clinics, as defined under section 145.9268, to implement and use 
358.14 	interoperable electronic health records, including but not limited to the following projects:
358.15 	(1) efforts to plan for and implement fully functional, standards-based interoperable 
358.16 	electronic health records; and
358.17 	(2) purchases and implementation of computer hardware, software, and technology 
358.18 	to fully implement interoperable electronic health records;
358.19 	(c) regional or community-based health information exchange organizations to 
358.20 	connect and facilitate the exchange of health information between eligible health care 
358.21 	entities, including but not limited to the development, testing, and implementation of:
358.22 	(1) data exchange standards, including data, vocabulary, and messaging standards, 
358.23 	for the exchange of health information, provided that such standards are consistent with 
358.24 	state and national standards;
358.25 	(2) security standards necessary to ensure the confidentiality and integrity of health 
358.26 	records;
358.27 	(3) computer interfaces and mechanisms for standardizing health information 
358.28 	exchanged between eligible health care entities;
358.29 	(4) a record locator service for identifying the location of patient health records; or
358.30 	(5) interfaces and mechanisms for implementing patient consent requirements; and
358.31 	(d) community health boards and boards of health as established under chapter 
358.32 	145A to modernize local public health information systems to be standards-based and 
358.33 	interoperable with other electronic health records and information systems, or for 
358.34 	enhanced public health emergency preparedness and response.
358.35 	Grant funds may not be used for construction of health care or other buildings or 
358.36 	facilities.
359.1 		Subd. 3.Allocation of grants. (a) To receive a grant under this section, an eligible 
359.2 	community e-health collaborative, community clinic, regional or community-based health 
359.3 	information exchange, or community health boards and boards of health must submit an 
359.4 	application to the commissioner of health by the deadline established by the commissioner. 
359.5 	A grant may be awarded upon the signing of a grant contract. In awarding grants, the 
359.6 	commissioner shall give preference to projects benefiting providers located in rural and 
359.7 	underserved areas of Minnesota which the commissioner has determined have an unmet 
359.8 	need for the development and funding of electronic health records. Applicants may apply 
359.9 	for and the commissioner may award grants for one-year, two-year, or three-year periods.
359.10 	(b) An application must be on a form and contain information as specified by the 
359.11 	commissioner but at a minimum must contain:
359.12 	(1) a description of the purpose or project for which grant funds will be used; 
359.13 	(2) a description of the problem or problems the grant funds will be used to address, 
359.14 	including an assessment of the likelihood of the project occurring absent grant funding; 
359.15 	(3) a description of achievable objectives, a workplan, budget, budget narrative, a 
359.16 	project communications plan, a timeline for implementation and completion of processes 
359.17 	or projects enabled by the grant, and an assessment of privacy and security issues and a 
359.18 	proposed approach to address these issues;
359.19 	(4) a description of the health care entities and other groups participating in the 
359.20 	project, including identification of the lead entity responsible for applying for and 
359.21 	receiving grant funds; 
359.22 	(5) a plan for how patients and consumers will be involved in development of 
359.23 	policies and procedures related to the access to and interchange of information; 
359.24 	(6) evidence of consensus and commitment among the health care entities and others 
359.25 	who developed the proposal and are responsible for its implementation; and
359.26 	(7) a plan for documenting and evaluating results of the grant. ; and
359.27 	(8) a plan for use of data exchange standards, including data and vocabulary.
359.28 	(c) The commissioner shall review each application to determine whether the 
359.29 	application is complete and whether the applicant and the project are eligible for a 
359.30 	grant. In evaluating applications, the commissioner shall take into consideration factors, 
359.31 	including but not limited to, the following:
359.32 	(1) the degree to which the proposal interconnects the various providers of care with 
359.33 	other health care entities in the applicant's geographic community; 
359.34 	(2) the degree to which the project provides for the interoperability of electronic 
359.35 	health records or related health information technology between the members of the 
360.1 	collaborative, and presence and scope of a description of how the project intends to 
360.2 	interconnect with other providers not part of the project into the future;
360.3 	(3) the degree to which the project addresses current unmet needs pertaining 
360.4 	to interoperable electronic health records in a geographic area of Minnesota and the 
360.5 	likelihood that the needs would not be met absent grant funds; 
360.6 	(4) the applicant's thoroughness and clarity in describing the project, how the project 
360.7 	will improve patient safety, quality of care, and consumer empowerment, and the role of 
360.8 	the various collaborative members;
360.9 	(5) the recommendations of the Health Information and Technology Infrastructure 
360.10 	Advisory Committee; and
360.11 	(6) other factors that the commissioner deems relevant.
360.12 	(d) Grant funds shall be awarded on a three-to-one match basis. Applicants shall 
360.13 	be required to provide $1 in the form of cash or in-kind staff or services for each $3 
360.14 	provided under the grant program.
360.15 	(e) Grants shall not exceed $900,000 per grant. The commissioner has discretion 
360.16 	over the size and number of grants awarded.
360.17 		Subd. 4.Evaluation and report. The commissioner of health shall evaluate the 
360.18 	overall effectiveness of the grant program. The commissioner shall collect progress 
360.19 	and expenditure reports to evaluate the grant program from the eligible community 
360.20 	collaboratives receiving grants.

360.21 	Sec. 11. Minnesota Statutes 2006, section 144D.03, subdivision 1, is amended to read:
360.22 		Subdivision 1.Registration procedures. The commissioner shall establish forms 
360.23 	and procedures for annual registration of housing with services establishments. The 
360.24 	commissioner shall charge an annual registration fee of $35 $155. No fee shall be 
360.25 	refunded. A registered establishment shall notify the commissioner within 30 days of the 
360.26 	date it is no longer required to be registered under this chapter or of any change in the 
360.27 	business name or address of the establishment, the name or mailing address of the owner 
360.28 	or owners, or the name or mailing address of the managing agent. There shall be no 
360.29 	fee for submission of the notice.

360.30 	Sec. 12. [145.9269] FEDERALLY QUALIFIED HEALTH CENTERS.
360.31 		Subdivision 1.Definitions. For purposes of this section, "federally qualified health 
360.32 	center" means an entity that is receiving a grant under United States Code, title 42, 
360.33 	section 254b, or, based on the recommendation of the Health Resources and Services 
361.1 	Administration within the Public Health Service, is determined by the secretary to meet 
361.2 	the requirements for receiving such a grant.
361.3 		Subd. 2.Allocation of subsidies. The commissioner of health shall distribute 
361.4 	subsidies to federally qualified health centers operating in Minnesota to continue, expand, 
361.5 	and improve federally qualified health center services to low-income populations. The 
361.6 	commissioner shall distribute the funds appropriated under this section to federally 
361.7 	qualified health centers operating in Minnesota as of January 1, 2007. The amount of 
361.8 	each subsidy shall be in proportion to each federally qualified health center's amount of 
361.9 	discounts granted to patients during calendar year 2006 as reported on the federal Uniform 
361.10 	Data System report in conformance with the Bureau of Primary Health Care Program 
361.11 	Expectations Policy Information Notice 98-23, except that each eligible federally qualified 
361.12 	health center shall receive at least two percent but no more than 30 percent of the total 
361.13 	amount of money available under this section.

361.14 	Sec. 13. HEALTH PROMOTION PROGRAM.
 361.15 	The commissioner of health, in consultation with the State Community Health 
361.16 	Services Advisory Committee established in Minnesota Statutes, section 145A.10, 
361.17 	subdivision 10, shall develop a plan to fund and implement an ongoing comprehensive 
361.18 	health promotion program that can effect change more effectively and at lower cost at 
361.19 	a community level rather than through individual counseling and change promotion. 
361.20 	The program shall use proven public health strategies to promote healthy lifestyles and 
361.21 	behaviors in order to establish a sustainable, long-term approach to reducing preventable 
361.22 	disability, chronic health conditions, and disease. The focus shall be on community 
361.23 	based initiatives that address childhood and adult obesity, tobacco and substance abuse, 
361.24 	improved activity levels among senior citizens, and other lifestyle issues that impact 
361.25 	health and healthcare costs. Because of its population health focus, funding shall be 
361.26 	related to the size of the population to be served. The plan shall be completed by October 
361.27 	1, 2007, and shared with the Legislative Health Care Access Commission.

361.28 	Sec. 14. CERVICAL CANCER PREVENTION AND HUMAN PAPILLOMA 
361.29 	VIRUS VACCINE STUDY.
 361.30 	The commissioner of health shall reconvene the cervical cancer elimination study 
361.31 	required under Laws 2005, First Special Session chapter 4, article 6, section 52, to conduct 
361.32 	a study, in collaboration with the Minnesota Immunization Practices Advisory Committee, 
361.33 	on the human papilloma virus vaccine, including, but not limited to, the following: 
361.34 	(1) the risks and benefits of the human papilloma virus vaccine;
362.1 	(2) the availability and effectiveness of the vaccine;
362.2 	(3) the extent to which health plan companies cover the cost of this vaccination; and
362.3 	(4) ways to cover the cost of vaccination for persons without coverage.
362.4 	The commissioner shall submit a report to the legislature by February 1, 2008, on 
362.5 	the findings of the study and recommendations as to whether the human papilloma virus 
362.6 	vaccine should be made mandatory statewide.

362.7 	Sec. 15. REVISOR'S INSTRUCTION.
 362.8 	In Minnesota Statutes and Minnesota Rules, the revisor shall change the references 
362.9 	in column A with the references in column B.

362.10	Column A
	Column B
	
362.11	section 144.335
	sections 144.291 to 144.298
	
362.12	section 144.335, subdivision 1
	section 144.291, subdivision 2
	
362.13
362.14	section 144.335, subdivision 1, paragraph 
(b)
	section 144.291, subdivision 2, paragraph 
(h)
	
362.15
362.16	section 144.335, subdivision 2, paragraphs 
(a) and (b)
	section 144.292, subdivisions 2 and 5
	
362.17	section 144.335, subdivision 2
	section 144.292
	
362.18	section 144.335, subdivision 3a
	section 144.294, subdivision 2
	
362.19
362.20	section 144.335, subdivision 3a, paragraph 
(d)
	section 144.295
	
362.21
362.22	section 144.335, subdivision 3a, paragraph 
(f)
	section 144.294
	
362.23	section 144.335, subdivision 3b
	section 144.293, subdivision 7

362.24 	Sec. 16.  REPEALER.
 362.25 	Minnesota Statutes 2006, section 144.335, and Laws 2006, chapter 249, section 
362.26 	6, are repealed.

362.27 	ARTICLE 11
362.28 	MISCELLANEOUS POLICY

362.29 	Section 1. Minnesota Statutes 2006, section 13.381, is amended by adding a 
362.30 	subdivision to read:
362.31 		Subd. 16a.Prescription electronic reporting system. Access to data in the 
362.32 	prescription electronic reporting system is governed by section 152.126.

362.33 	Sec. 2. Minnesota Statutes 2006, section 144.5509, is amended to read:
362.34 	144.5509 RADIATION THERAPY FACILITY CONSTRUCTION.
363.1 	(a) A radiation therapy facility may be constructed only by an entity owned, 
363.2 	operated, or controlled by a hospital licensed according to sections 144.50 to 144.56 either 
363.3 	alone or in cooperation with another entity. 
363.4 	(b) This section expires August 1,  2013 Notwithstanding paragraph (a), there shall 
363.5 	be a two-year moratorium on the construction of any radiation therapy facility located in 
363.6 	the following counties: Hennepin, Ramsey, Dakota, Washington, Anoka, Carver, Scott, 
363.7 	St. Louis, Sherburne, Benton, Stearns, Chisago, Isanti, and Wright. This paragraph does 
363.8 	not apply to the relocation or reconstruction of an existing facility owned by a hospital if 
363.9 	the relocation or reconstruction is within one mile of the existing facility. This paragraph 
363.10 	expires August 1, 2009. This paragraph does not apply to a radiation therapy facility 
363.11 	that is being built attached to a community hospital in Wright County and meets the 
363.12 	following conditions prior to August 1, 2007: the capital expenditure report required 
363.13 	under Minnesota Statutes, section 62J.17, has been filed with the commissioner of health; 
363.14 	a timely construction schedule is developed, stipulating dates for beginning, achieving 
363.15 	various stages, and completing construction; and all zoning and building permits applied 
363.16 	for.

363.17 	Sec. 3. Minnesota Statutes 2006, section 148.235, is amended by adding a subdivision 
363.18 	to read:
363.19 		Subd. 11.Dispensing by protocol. A registered nurse in a family planning agency 
363.20 	as defined in Minnesota Rules, part 9505.0280, subpart 3, may dispense oral contraceptives 
363.21 	prescribed by a licensed practitioner as defined in section 151.01, subdivision 23, pursuant 
363.22 	to a dispensing protocol established by the agency's medical director or under the direction 
363.23 	of a physician. The dispensing protocol must address the requirements of sections 151.01, 
363.24 	subdivision 30, and 151.212, subdivision 1.

363.25 	Sec. 4. Minnesota Statutes 2006, section 151.19, subdivision 2, is amended to read:
363.26 		Subd. 2.Nonresident pharmacies. The board shall require and provide for an 
363.27 	annual nonresident special pharmacy registration for all pharmacies located outside of this 
363.28 	state that regularly dispense medications for Minnesota residents and mail, ship, or deliver 
363.29 	prescription medications into this state. Nonresident special pharmacy registration shall 
363.30 	be granted by the board upon the disclosure and certification by a pharmacy:
363.31 	(1) that it is licensed in the state in which the dispensing facility is located and from 
363.32 	which the drugs are dispensed;
363.33 	(2) the location, names, and titles of all principal corporate officers and all 
363.34 	pharmacists who are dispensing drugs to residents of this state;
364.1 	(3) that it complies with all lawful directions and requests for information from 
364.2 	the Board of Pharmacy of all states in which it is licensed or registered, except that it 
364.3 	shall respond directly to all communications from the board concerning emergency 
364.4 	circumstances arising from the dispensing of drugs to residents of this state;
364.5 	(4) that it maintains its records of drugs dispensed to residents of this state so that the 
364.6 	records are readily retrievable from the records of other drugs dispensed;
364.7 	(5) that it cooperates with the board in providing information to the Board of 
364.8 	Pharmacy of the state in which it is licensed concerning matters related to the dispensing 
364.9 	of drugs to residents of this state; and
364.10 	(6) that during its regular hours of operation, but not less than six days per week, for 
364.11 	a minimum of 40 hours per week, a toll-free telephone service is provided to facilitate 
364.12 	communication between patients in this state and a pharmacist at the pharmacy who has 
364.13 	access to the patients' records; the toll-free number must be disclosed on the label affixed 
364.14 	to each container of drugs dispensed to residents of this state.; and
364.15 	(7) that, upon request of a resident of a long-term care facility located within the 
364.16 	state of Minnesota, the resident's authorized representative, or a contract pharmacy or 
364.17 	licensed health care facility acting on behalf of the resident, the pharmacy will dispense 
364.18 	medications prescribed for the resident in unit-dose packaging or, alternatively, comply 
364.19 	with the provisions of section 151.415, subdivision 5.

364.20 	Sec. 5. [151.415] LONG-TERM CARE RESIDENT ACCESS TO 
364.21 	PHARMACEUTICALS ACT.
364.22 		Subdivision 1.Title; citation. This section may be cited as the "Long-Term Care 
364.23 	Resident Access to Pharmaceuticals Act."
364.24 		Subd. 2.Definitions. For the purposes of this section, the following terms have the 
364.25 	meanings given them unless otherwise provided by text:
364.26 	(a) "Board" means the Board of Pharmacy.
364.27 	(b) "Contract pharmacy" means a pharmacy, licensed under this chapter, which is 
364.28 	under contract to a long-term care facility.
364.29 	(c) "Long-term care facility" means a nursing home licensed under sections 144A.02 
364.30 	to 144A.10, or a boarding care home licensed under sections 144.50 to 144.56. Facilities 
364.31 	not certified under title XIX of the federal Social Security Act are not included in this 
364.32 	definition.
364.33 	(d) "Original dispensing pharmacy" shall mean a pharmacy, licensed in any state in 
364.34 	the United States, which dispenses drugs in bulk prescription containers to a person who 
364.35 	is a resident in a long-term care facility.
365.1 		Subd. 3.Authorization to administer and repackage drugs. (a) A contract 
365.2 	pharmacist or pharmacy may repackage a resident's prescription drugs, which have been 
365.3 	lawfully dispensed from bulk prescription containers by an original dispensing pharmacy, 
365.4 	into a unit-dose system compatible with the system used by the long-term care facility.
365.5 	(b) A long-term care facility may administer drugs to residents of the facility that 
365.6 	have been repackaged according to this subdivision. The contract pharmacy shall notify 
365.7 	the long-term care facility whenever medications have been dispensed according to 
365.8 	this subdivision and must certify that the repackaging and dispensing has been done in 
365.9 	accordance with this subdivision.
365.10 	(c) Drugs may be dispensed for a resident of a long-term care facility according to 
365.11 	this subdivision, provided that:
365.12 	(1) the drug is dispensed by the original dispensing pharmacy according to a current, 
365.13 	valid prescription;
365.14 	(2) the original bulk prescription container for the resident is delivered by the 
365.15 	original dispensing pharmacy directly to the contract pharmacist or pharmacy;
365.16 	(3) the contract pharmacist or pharmacy verifies the name and strength of the drug, 
365.17 	the name of the manufacturer of the drug, the manufacturer's lot or control number, the 
365.18 	manufacturer's expiration date for the drug, and the date the drug was dispensed by the 
365.19 	original dispensing pharmacy;
365.20 	(4) the contract pharmacist or pharmacy verifies the validity and accuracy of the 
365.21 	current prescription order;
365.22 	(5) the contract pharmacist or pharmacy repackages the drug in board-approved 
365.23 	unit-dose packaging, with labeling that complies with Minnesota Rules, part 6800.6300, 
365.24 	and that identifies that the drug has been repackaged according to this section;
365.25 	(6) the resident for whom the medication is repackaged obtains medications from or 
365.26 	receives medications at a discounted rate from the original dispensing pharmacy under the 
365.27 	resident's state or federal health assistance program or a private health insurance plan; and
365.28 	(7) the resident for whom the medication is to be repackaged, or the resident's 
365.29 	authorized representative, has signed an informed consent form provided by the facility 
365.30 	which includes an explanation of the repackaging process and which notifies the resident 
365.31 	of the immunities from liability provided in this section.
365.32 		Subd. 4.Maintenance of records. For each drug repackaged by a contract 
365.33 	pharmacy under this section, the contract pharmacy shall maintain a record for at least 
365.34 	two years of the following information:
365.35 	(1) the name, manufacturer, manufacturer's lot number, manufacturer's expiration 
365.36 	date, and quantity of the drug prescribed;
366.1 	(2) the name and address of the resident for whom the drug was repackaged;
366.2 	(3) the name and address or other identifier of the prescriber;
366.3 	(4) the date the prescription was issued and the date the drug was repackaged;
366.4 	(5) the date the repackaged drug was delivered to the long-term care facility;
366.5 	(6) the directions for use;
366.6 	(7) a copy of the label that was affixed to the repackaged drug;
366.7 	(8) the initials of the packager;
366.8 	(9) the initials of the supervising pharmacist; and
366.9 	(10) the name and business address of the original dispensing pharmacy.
366.10 		Subd. 5.Duties of the original dispensing pharmacy. Upon request of the 
366.11 	resident, the resident's authorized representative, or a contract pharmacy or licensed 
366.12 	health care facility acting on behalf of the resident, the original dispensing pharmacy 
366.13 	is required to deliver medications dispensed for the resident directly to the contract 
366.14 	pharmacist or pharmacy. The original dispensing pharmacy is further required to provide 
366.15 	the contract pharmacist or pharmacy with the name and strength of the drug, the name of 
366.16 	the manufacturer of the drug, the manufacturer's lot or control number, the manufacturer's 
366.17 	expiration date for the drug, and the date the drug was dispensed.
366.18 		Subd. 6.Redispensing of returned drugs prohibited. Unused drugs repackaged 
366.19 	according to this section that are returned to any pharmacy shall not be redispensed.
366.20 		Subd. 7.Immunity from civil liability. (a) A contract pharmacist or pharmacy 
366.21 	and its employees or agents repackaging a drug acquired from an original dispensing 
366.22 	pharmacy shall be immune from civil liability arising from harm caused by the drug due 
366.23 	to acts or omissions of other persons outside of the contract pharmacist or pharmacy if the 
366.24 	contract pharmacist or pharmacy properly repackages the drug according to this section.
366.25 	(b) A long-term care facility and the facility's employees or agents who properly 
366.26 	administer a drug repackaged by a contract pharmacist or pharmacy under this section 
366.27 	shall be immune from civil liability arising from harm caused by the drug due to acts or 
366.28 	omissions of other persons outside the long-term care facility.
366.29 		Subd. 8.Handling fee. A contract pharmacist or pharmacy may charge a monthly 
366.30 	fee of no more than 250 percent of the medical assistance program dispensing fee for 
366.31 	each drug repackaged according to this section, but no more than $100 per month for 
366.32 	each individual resident.

366.33 	Sec. 6. Minnesota Statutes 2006, section 152.11, is amended by adding a subdivision to 
366.34 	read:
367.1 		Subd. 2d.Identification requirement for schedule II or III controlled substance.
 367.2 	No person may dispense a controlled substance included in schedule II or III without 
367.3 	requiring the person purchasing the controlled substance, who need not be the person for 
367.4 	whom the controlled substance prescription is written, to present valid photographic 
367.5 	identification, unless the person purchasing the controlled substance, or if applicable the 
367.6 	person for whom the controlled substance prescription is written, is known to the dispenser.

367.7 	Sec. 7. [152.126] SCHEDULE II AND III CONTROLLED SUBSTANCES 
367.8 	PRESCRIPTION ELECTRONIC REPORTING SYSTEM.
367.9 		Subdivision 1.Definitions. For purposes of this section, the terms defined in this 
367.10 	subdivision have the meanings given.
367.11 	(a) "Board" means the Minnesota State Board of Pharmacy established under 
367.12 	chapter 151.
367.13 	(b) "Controlled substances" means those substances listed in section 152.02, 
367.14 	subdivisions 3 and 4, and those substances defined by the board pursuant to section 
367.15 	152.02, subdivisions 7, 8, and 12.
367.16 	(c) "Dispense" or "dispensing" has the meaning given in section 151.01, subdivision 
367.17 	30. Dispensing does not include the direct administering of a controlled substance to a 
367.18 	patient by a licensed health care professional.
367.19 	(d) "Dispenser" means a person authorized by law to dispense a controlled substance, 
367.20 	pursuant to a valid prescription. A dispenser does not include a licensed hospital pharmacy 
367.21 	that distributes controlled substances for inpatient hospital care.
367.22 	(e) "Prescriber" means a licensed health care professional who is authorized to 
367.23 	prescribe a controlled substance under section 152.12, subdivision 1.
367.24 	(f) "Prescription" has the meaning given in section 151.01, subdivision 16.
367.25 		Subd. 2.Prescription electronic reporting system. (a) The board shall establish 
367.26 	by January 1, 2009, an electronic system for reporting the information required under 
367.27 	subdivision 4 for all controlled substances dispensed within the state. Data for controlled 
367.28 	substance prescriptions that are dispensed in a quantity small enough to provide treatment 
367.29 	to a patient for a period of 48 hours or less need not be reported.
367.30 	(b) The board may contract with a vendor for the purpose of obtaining technical 
367.31 	assistance in the design, implementation, and maintenance of the electronic reporting 
367.32 	system. The vendor's role shall be limited to providing technical support to the board 
367.33 	concerning the software, databases, and computer systems required to interface with the 
367.34 	existing systems currently used by pharmacies to dispense prescriptions and transmit 
367.35 	prescription data to other third parties.
368.1 		Subd. 3.Prescription Electronic Reporting Advisory Committee. (a) The 
368.2 	board shall convene an advisory committee. The committee must include at least one 
368.3 	representative of:
368.4 	(1) the Department of Health;
368.5 	(2) the Department of Human Services;
368.6 	(3) each health-related licensing board that licenses prescribers;
368.7 	(4) a professional medical association, which may include an association of pain 
368.8 	management and chemical dependency specialists;
368.9 	(5) a professional pharmacy association; 
368.10 	(6) a consumer privacy or security advocate; and 
368.11 	(7) a consumer or patient rights organization.
368.12 	(b) The advisory committee shall advise the board on the development and operation 
368.13 	of the electronic reporting system, including, but not limited to:
368.14 	(1) technical standards for electronic prescription drug reporting;
368.15 	(2) proper analysis and interpretation of prescription monitoring data; and
368.16 	(3) an evaluation process for the program.
368.17 	(c) The Board of Pharmacy, after consultation with the advisory committee, shall 
368.18 	present recommendations and draft legislation on the issues addressed by the advisory 
368.19 	committee under paragraph (b), to the legislature by December 15, 2007.
368.20 		Subd. 4.Reporting requirements; notice. (a) Each dispenser must submit the 
368.21 	following data to the board or its designated vendor, subject to the notice required under 
368.22 	paragraph (d):
368.23 	(1) name of the prescriber;
368.24 	(2) national provider identifier of the prescriber;
368.25 	(3) name of the dispenser;
368.26 	(4) national provider identifier of the dispenser;
368.27 	(5) name of the patient for whom the prescription was written;
368.28 	(6) date of birth of the patient for whom the prescription was written;
368.29 	(7) date the prescription was written;
368.30 	(8) date the prescription was filled;
368.31 	(9) name and strength of the controlled substance;
368.32 	(10) quantity of controlled substance prescribed; and
368.33 	(11) quantity of controlled substance dispensed.
368.34 	(b) The dispenser must submit the required information by a procedure and in a 
368.35 	format established by the board.
369.1 	(c) A dispenser is not required to submit this data for those controlled substance 
369.2 	prescriptions dispensed for:
369.3 	(1) individuals residing in licensed skilled nursing or intermediate care facilities;
369.4 	(2) individuals receiving assisted living services under chapter 144G or through a 
369.5 	medical assistance home and community-based waiver;
369.6 	(3) individuals receiving medication intravenously;
369.7 	(4) individuals receiving hospice and other palliative or end-of-life care; and
369.8 	(5) individuals receiving services from a home care provider regulated under chapter 
369.9 	144A.
369.10 	(d) A dispenser must not submit data under this subdivision unless a conspicuous 
369.11 	notice of the reporting requirements of this section is given to the patient for whom the 
369.12 	prescription was written.
369.13 		Subd. 5.Use of data by board. (a) The board shall develop and maintain a database 
369.14 	of the data reported under subdivision 4. The board shall maintain data that could identify 
369.15 	an individual prescriber or dispenser in encrypted form. The database may be used by 
369.16 	permissible users identified under subdivision 6 for the identification of:
369.17 	(1) individuals receiving prescriptions for controlled substances from prescribers 
369.18 	who subsequently obtain controlled substances from dispensers in quantities or with 
369.19 	a frequency inconsistent with standards accepted by national and international pain 
369.20 	management associations of dosage for those controlled substances; and 
369.21 	(2) individuals presenting forged or otherwise false or altered prescriptions for 
369.22 	controlled substances to dispensers. 
369.23 	(b) No permissible user identified under subdivision 6 may access the database 
369.24 	for the sole purpose of identifying prescribers of controlled substances for unusual or 
369.25 	excessive prescribing patterns without a valid search warrant or court order.
369.26 	(c) No personnel of a state or federal occupational licensing board or agency may 
369.27 	access the database for the purpose of obtaining information to be used to initiate or 
369.28 	substantiate a disciplinary action against a prescriber.
369.29 	(d) Data reported under subdivision 4 shall be retained by the board in the database 
369.30 	for a 12-month period, and shall be removed from the database 12 months from the date 
369.31 	the data was received.
369.32 		Subd. 6.Access to reporting system data. (a) Except as indicated in this 
369.33 	subdivision, the data submitted to the board under subdivision 4 is private data on 
369.34 	individuals as defined in section 13.02, subdivision 12, and not subject to public disclosure.
369.35 	(b) Except as specified in subdivision 5, the following persons shall be considered 
369.36 	permissible users and may access the data submitted under subdivision 4 in the same or 
370.1 	similar manner, and for the same or similar purposes, as those persons who are authorized 
370.2 	to access similar private data on individuals under federal and state law:
370.3 	(1) a prescriber, to the extent the information relates specifically to a current patient 
370.4 	of the prescriber, to whom the practitioner is prescribing or considering prescribing any 
370.5 	controlled substance;
370.6 	(2) a dispenser, to the extent the information relates specifically to a current patient 
370.7 	to whom that dispenser is dispensing or considering dispensing any controlled substance;
370.8 	(3) an individual who is the recipient of a controlled substance prescription for 
370.9 	which data was submitted under subdivision 4, or a guardian of the individual, parent or 
370.10 	guardian of a minor, or health care agent of the individual acting under a health care 
370.11 	directive under chapter 145C;
370.12 	(4) personnel of the board specifically assigned to conduct a bona fide investigation 
370.13 	of a specific licensee;
370.14 	(5) personnel of the board engaged in the collection of controlled substance 
370.15 	prescription information as part of the assigned duties and responsibilities under this 
370.16 	section;
370.17 	(6) authorized personnel of a vendor under contract with the board who are engaged 
370.18 	in the design, implementation, and maintenance of the electronic reporting system as part 
370.19 	of the assigned duties and responsibilities of their employment, provided that access to data 
370.20 	is limited to the minimum amount necessary to test and maintain the system databases;
370.21 	(7) federal, state, and local law enforcement authorities acting pursuant to a valid 
370.22 	search warrant; and
370.23 	(8) personnel of the medical assistance program assigned to use the data collected 
370.24 	under this section to identify recipients whose usage of controlled substances may warrant 
370.25 	restriction to a single primary care physician, a single outpatient pharmacy, or a single 
370.26 	hospital.
370.27 	For purposes of clause (3), access by an individual includes persons in the definition 
370.28 	of an individual under section 13.02.
370.29 	(c) Any permissible user identified in paragraph (b), who directly accesses 
370.30 	the data electronically, shall implement and maintain a comprehensive information 
370.31 	security program that contains administrative, technical, and physical safeguards that 
370.32 	are appropriate to the user's size and complexity, and the sensitivity of the personal 
370.33 	information obtained. The permissible user shall identify reasonably foreseeable internal 
370.34 	and external risks to the security, confidentiality, and integrity of personal information 
370.35 	that could result in the unauthorized disclosure, misuse, or other compromise of the 
370.36 	information and assess the sufficiency of any safeguards in place to control the risks.
371.1 	(d) The board shall not release data submitted under this section unless it is provided 
371.2 	with evidence, satisfactory to the board, that the person requesting the information is 
371.3 	entitled to receive the data.
371.4 	(e) The board shall not release the name of a prescriber without the written consent 
371.5 	of the prescriber or a valid search warrant or court order. The board shall provide a 
371.6 	mechanism for a prescriber to submit to the board a signed consent authorizing the release 
371.7 	of the prescriber's name when data containing the prescriber's name is requested.
371.8 	(f) The board shall maintain a log of all persons who access the data and shall ensure 
371.9 	that any permissible user complies with paragraph (c) prior to attaining direct access to 
371.10 	the data.
371.11 		Subd. 7.Disciplinary action. (a) A dispenser who knowingly fails to submit data to 
371.12 	the board as required under this section is subject to disciplinary action by the appropriate 
371.13 	health-related licensing board.
371.14 	(b) A prescriber or dispenser authorized to access the data who knowingly discloses 
371.15 	the data in violation of state or federal laws relating to the privacy of health care data 
371.16 	shall be subject to disciplinary action by the appropriate health-related licensing board, 
371.17 	and appropriate civil penalties.
371.18 		Subd. 8.Evaluation and reporting. (a) The board shall evaluate the prescription 
371.19 	electronic reporting system to determine if the system is cost-effective and whether it is 
371.20 	negatively impacting appropriate prescribing practices of controlled substances. The 
371.21 	board may contract with a vendor to design and conduct the evaluation.
371.22 	(b) The board shall submit the evaluation of the system to the legislature by January 
371.23 	15, 2010.
371.24 		Subd. 9.Immunity from liability; no requirement to obtain information. (a) A 
371.25 	pharmacist, prescriber, or other dispenser making a report to the program in good faith 
371.26 	under this section is immune from any civil, criminal, or administrative liability, which 
371.27 	might otherwise be incurred or imposed as a result of the report, or on the basis that the 
371.28 	pharmacist or prescriber did or did not seek or obtain or use information from the program.
371.29 	(b) Nothing in this section shall require a pharmacist, prescriber, or other dispenser 
371.30 	to obtain information about a patient from the program, and the pharmacist, prescriber, 
371.31 	or other dispenser, if acting in good faith, is immune from any civil, criminal, or 
371.32 	administrative liability that might otherwise be incurred or imposed for requesting, 
371.33 	receiving, or using information from the program.

371.34 	EFFECTIVE DATE. This section is effective July 1, 2007, or upon receiving 
371.35 	sufficient nonstate funds to implement the prescription electronic reporting program, 
371.36 	whichever is later. In the event that nonstate funds are not secured by the Board of 
372.1 	Pharmacy to adequately fund the implementation of the prescription electronic reporting 
372.2 	program, the board is not required to implement this section without a subsequent 
372.3 	appropriation from the legislature.

372.4 	Sec. 8. Minnesota Statutes 2006, section 245.4874, is amended to read:
372.5 	245.4874 DUTIES OF COUNTY BOARD.
372.6 	(a) The county board must:
372.7 	(1) develop a system of affordable and locally available children's mental health 
372.8 	services according to sections 245.487 to 245.4887;
372.9 	(2) establish a mechanism providing for interagency coordination as specified in 
372.10 	section 245.4875, subdivision 6;
372.11 	(3) consider the assessment of unmet needs in the county as reported by the local 
372.12 	children's mental health advisory council under section 245.4875, subdivision 5, paragraph 
372.13 	(b), clause (3). The county shall provide, upon request of the local children's mental health 
372.14 	advisory council, readily available data to assist in the determination of unmet needs;
372.15 	(4) assure that parents and providers in the county receive information about how to 
372.16 	gain access to services provided according to sections 245.487 to 245.4887;
372.17 	(5) coordinate the delivery of children's mental health services with services 
372.18 	provided by social services, education, corrections, health, and vocational agencies to 
372.19 	improve the availability of mental health services to children and the cost-effectiveness of 
372.20 	their delivery;
372.21 	(6) assure that mental health services delivered according to sections 245.487
372.22 	to 245.4887 are delivered expeditiously and are appropriate to the child's diagnostic 
372.23 	assessment and individual treatment plan;
372.24 	(7) provide the community with information about predictors and symptoms of 
372.25 	emotional disturbances and how to access children's mental health services according to 
372.26 	sections 245.4877 and 245.4878;
372.27 	(8) provide for case management services to each child with severe emotional 
372.28 	disturbance according to sections 245.486; 245.4871, subdivisions 3 and 4; and 245.4881, 
372.29 	subdivisions 1, 3, and 5;
372.30 	(9) provide for screening of each child under section 245.4885 upon admission 
372.31 	to a residential treatment facility, acute care hospital inpatient treatment, or informal 
372.32 	admission to a regional treatment center;
372.33 	(10) prudently administer grants and purchase-of-service contracts that the county 
372.34 	board determines are necessary to fulfill its responsibilities under sections 245.487 to 
372.35 	245.4887;
373.1 	(11) assure that mental health professionals, mental health practitioners, and case 
373.2 	managers employed by or under contract to the county to provide mental health services 
373.3 	are qualified under section 245.4871;
373.4 	(12) assure that children's mental health services are coordinated with adult mental 
373.5 	health services specified in sections 245.461 to 245.486 so that a continuum of mental 
373.6 	health services is available to serve persons with mental illness, regardless of the person's 
373.7 	age;
373.8 	(13) assure that culturally informed mental health consultants are used as necessary 
373.9 	to assist the county board in assessing and providing appropriate treatment for children of 
373.10 	cultural or racial minority heritage; and
373.11 	(14) consistent with section 245.486, arrange for or provide a children's mental 
373.12 	health screening to a child receiving child protective services or a child in out-of-home 
373.13 	placement, a child for whom parental rights have been terminated, a child found to be 
373.14 	delinquent, and a child found to have committed a juvenile petty offense for the third 
373.15 	or subsequent time, unless a screening or diagnostic assessment has been performed 
373.16 	within the previous 180 days, or the child is currently under the care of a mental health 
373.17 	professional. The court or county agency must notify a parent or guardian whose 
373.18 	parental rights have not been terminated of the potential mental health screening and the 
373.19 	option to prevent the screening by notifying the court or county agency in writing. The 
373.20 	screening shall be conducted with a screening instrument approved by the commissioner 
373.21 	of human services according to criteria that are updated and issued annually to ensure 
373.22 	that approved screening instruments are valid and useful for child welfare and juvenile 
373.23 	justice populations, and shall be conducted by a mental health practitioner as defined in 
373.24 	section 245.4871, subdivision 26, or a probation officer or local social services agency 
373.25 	staff person who is trained in the use of the screening instrument. Training in the use of the 
373.26 	instrument shall include training in the administration of the instrument, the interpretation 
373.27 	of its validity given the child's current circumstances, the state and federal data practices 
373.28 	laws and confidentiality standards, the parental consent requirement, and providing respect 
373.29 	for families and cultural values. If the screen indicates a need for assessment, the child's 
373.30 	family, or if the family lacks mental health insurance, the local social services agency, 
373.31 	in consultation with the child's family, shall have conducted a diagnostic assessment, 
373.32 	including a functional assessment, as defined in section 245.4871. The administration of 
373.33 	the screening shall safeguard the privacy of children receiving the screening and their 
373.34 	families and shall comply with the Minnesota Government Data Practices Act, chapter 
373.35 	13, and the federal Health Insurance Portability and Accountability Act of 1996, Public 
374.1 	Law 104-191. Screening results shall be considered private data and the commissioner 
374.2 	shall not collect individual screening results.
374.3 	(b) When the county board refers clients to providers of children's therapeutic 
374.4 	services and supports under section 256B.0943, the county board must clearly identify 
374.5 	the desired services components not covered under section 256B.0943 and identify the 
374.6 	reimbursement source for those requested services, the method of payment, and the 
374.7 	payment rate to the provider.

374.8 	Sec. 9. Minnesota Statutes 2006, section 253B.185, subdivision 2, is amended to read:
374.9 		Subd. 2.Transfer to correctional facility. (a) If a person has been committed 
374.10 	under this section and later is committed to the custody of the commissioner of corrections 
374.11 	for any reason, including but not limited to, being sentenced for a crime or revocation of 
374.12 	the person's supervised release or conditional release under section 244.05, 609.108, 
374.13 	subdivision 6, or 609.109, subdivision 7, the person shall be transferred to a facility 
374.14 	designated by the commissioner of corrections without regard to the procedures provided 
374.15 	in section 253B.18. 
374.16 	(b) If a person is committed under this section after a commitment to the 
374.17 	commissioner of corrections, the person shall first serve the sentence in a facility 
374.18 	designated by the commissioner of corrections. After the person has served the sentence, 
374.19 	the person shall be transferred to a treatment program designated by the commissioner 
374.20 	of human services.

374.21 	Sec. 10. Minnesota Statutes 2006, section 254A.03, subdivision 3, is amended to read:
374.22 		Subd. 3.Rules for chemical dependency care. The commissioner of human 
374.23 	services shall establish by rule criteria to be used in determining the appropriate level 
374.24 	of chemical dependency care, whether outpatient, inpatient or short-term treatment 
374.25 	programs, for each recipient of public assistance seeking treatment for alcohol or other 
374.26 	drug dependency and abuse problems. The criteria shall address, at least, the family 
374.27 	relationship, past treatment history, medical or physical problems, arrest record, and 
374.28 	employment situation.

374.29 	Sec. 11. Minnesota Statutes 2006, section 254A.16, subdivision 2, is amended to read:
374.30 		Subd. 2.Program and service guidelines. (a) The commissioner shall provide 
374.31 	program and service guidelines and technical assistance to the county boards in carrying 
374.32 	out services authorized under sections section254A.08, 254A.12, 254A.14, and their 
374.33 	responsibilities under chapter 256E. 
375.1 	(b) The commissioner shall recommend to the governor means of improving 
375.2 	the efficiency and effectiveness of comprehensive program services in the state and 
375.3 	maximizing the use of nongovernmental funds for providing comprehensive programs.

375.4 	Sec. 12. Minnesota Statutes 2006, section 254B.02, subdivision 1, is amended to read:
375.5 		Subdivision 1.Chemical dependency treatment allocation. The chemical 
375.6 	dependency funds appropriated for allocation shall be placed in a special revenue account. 
375.7 	The commissioner shall annually transfer funds from the chemical dependency fund to pay 
375.8 	for operation of the drug and alcohol abuse normative evaluation system and to pay for all 
375.9 	costs incurred by adding two positions for licensing of chemical dependency treatment 
375.10 	and rehabilitation programs located in hospitals for which funds are not otherwise 
375.11 	appropriated. For each year of the biennium ending June 30, 1999, the commissioner shall 
375.12 	allocate funds to the American Indian chemical dependency tribal account for treatment 
375.13 	of American Indians by eligible vendors under section 254B.05, equal to the amount 
375.14 	allocated in fiscal year 1997. Six percent of the remaining money must be reserved for 
375.15 	tribal allocation under section 254B.09, subdivisions 4 and 5. The commissioner shall 
375.16 	annually divide the money available in the chemical dependency fund that is not held 
375.17 	in reserve by counties from a previous allocation, or allocated to the American Indian 
375.18 	chemical dependency tribal account. Six percent of the remaining money must be 
375.19 	reserved for the nonreservation American Indian chemical dependency allocation for 
375.20 	treatment of American Indians by eligible vendors under section 254B.05, subdivision 
375.21 	1. The remainder of the money must be allocated among the counties according to the 
375.22 	following formula, using state demographer data and other data sources determined by 
375.23 	the commissioner: 
375.24 	(a) For purposes of this formula, American Indians and children under age 14 are 
375.25 	subtracted from the population of each county to determine the restricted population.
375.26 	(b) The amount of chemical dependency fund expenditures for entitled persons for 
375.27 	services not covered by prepaid plans governed by section 256B.69 in the previous year is 
375.28 	divided by the amount of chemical dependency fund expenditures for entitled persons for 
375.29 	all services to determine the proportion of exempt service expenditures for each county. 
375.30 	(c) The prepaid plan months of eligibility is multiplied by the proportion of exempt 
375.31 	service expenditures to determine the adjusted prepaid plan months of eligibility for 
375.32 	each county.
375.33 	(d) The adjusted prepaid plan months of eligibility is added to the number of 
375.34 	restricted population fee for service months of eligibility for the Minnesota family 
376.1 	investment program, general assistance, and medical assistance and divided by the county 
376.2 	restricted population to determine county per capita months of covered service eligibility.
376.3 	(e) The number of adjusted prepaid plan months of eligibility for the state is added 
376.4 	to the number of fee for service months of eligibility for the Minnesota family investment 
376.5 	program, general assistance, and medical assistance for the state restricted population and 
376.6 	divided by the state restricted population to determine state per capita months of covered 
376.7 	service eligibility.
376.8 	(f) The county per capita months of covered service eligibility is divided by the 
376.9 	state per capita months of covered service eligibility to determine the county welfare 
376.10 	caseload factor.
376.11 	(g) The median married couple income for the most recent three-year period 
376.12 	available for the state is divided by the median married couple income for the same period 
376.13 	for each county to determine the income factor for each county.
376.14 	(h) The county restricted population is multiplied by the sum of the county welfare 
376.15 	caseload factor and the county income factor to determine the adjusted population.
376.16 	(i) $15,000 shall be allocated to each county.
376.17 	(j) The remaining funds shall be allocated proportional to the county adjusted 
376.18 	population.

376.19 	Sec. 13. Minnesota Statutes 2006, section 254B.02, subdivision 5, is amended to read:
376.20 		Subd. 5.Administrative adjustment. The commissioner may make payments to 
376.21 	local agencies from money allocated under this section to support administrative activities 
376.22 	under sections 254B.03 and 254B.04. The administrative payment must not exceed 
376.23 	five percent of the first $50,000, four percent of the next $50,000, and three percent of 
376.24 	the remaining payments for services from the allocation. Twenty-five percent of the 
376.25 	administrative allowance shall be advanced at the beginning of each quarter, based on 
376.26 	the payments for services made in the most recent quarter for which data is available. 
376.27 	Adjustment of any overestimate or underestimate based on actual expenditures shall be 
376.28 	made by the state agency by adjusting the administrative allowance for any succeeding 
376.29 	quarter.

376.30 	Sec. 14. Minnesota Statutes 2006, section 254B.03, subdivision 1, is amended to read:
376.31 		Subdivision 1.Local agency duties. (a) Every local agency shall provide chemical 
376.32 	dependency services to persons residing within its jurisdiction who meet criteria 
376.33 	established by the commissioner for placement in a chemical dependency residential or 
376.34 	nonresidential treatment service. Chemical dependency money must be administered 
377.1 	by the local agencies according to law and rules adopted by the commissioner under 
377.2 	sections 14.001 to 14.69. 
377.3 	(b) In order to contain costs, the county board shall, with the approval of the 
377.4 	commissioner of human services, select eligible vendors of chemical dependency services 
377.5 	who can provide economical and appropriate treatment. Unless the local agency is a social 
377.6 	services department directly administered by a county or human services board, the local 
377.7 	agency shall not be an eligible vendor under section 254B.05. The commissioner may 
377.8 	approve proposals from county boards to provide services in an economical manner or to 
377.9 	control utilization, with safeguards to ensure that necessary services are provided. If a 
377.10 	county implements a demonstration or experimental medical services funding plan, the 
377.11 	commissioner shall transfer the money as appropriate. If a county selects a vendor located 
377.12 	in another state, the county shall ensure that the vendor is in compliance with the rules 
377.13 	governing licensure of programs located in the state. 
377.14 	(c) The calendar year 2002 rate for vendors may not increase more than three 
377.15 	percent above the rate approved in effect on January 1, 2001. The calendar year 2003 
377.16 	rate for vendors may not increase more than three percent above the rate in effect on 
377.17 	January 1, 2002. The calendar years 2004 and 2005 rates may not exceed the rate in 
377.18 	effect on January 1, 2003.
377.19 	(d) (c) A culturally specific vendor that provides assessments under a variance under 
377.20 	Minnesota Rules, part 9530.6610, shall be allowed to provide assessment services to 
377.21 	persons not covered by the variance.

377.22 	Sec. 15. Minnesota Statutes 2006, section 254B.03, subdivision 3, is amended to read:
377.23 		Subd. 3.Local agencies to pay state for county share. Local agencies shall submit 
377.24 	invoices to the state on forms supplied by the commissioner and according to procedures 
377.25 	established by the commissioner. Local agencies shall pay the state for the county share 
377.26 	of the invoiced services authorized by the local agency. Payments shall be made at the 
377.27 	beginning of each month for services provided in the previous month. The commissioner 
377.28 	shall bill the county monthly for services, based on the most recent month for which 
377.29 	expenditure information is available. Adjustment of any overestimate or underestimate 
377.30 	based on actual expenditures shall be made by the state agency by adjusting the estimate 
377.31 	for any succeeding month.

377.32 	Sec. 16. Minnesota Statutes 2006, section 254B.06, subdivision 3, is amended to read:
377.33 		Subd. 3.Payment; denial. The commissioner shall pay eligible vendors for 
377.34 	placements made by local agencies under section 254B.03, subdivision 1, and placements 
378.1 	by tribal designated agencies according to section 254B.09. The commissioner may 
378.2 	reduce or deny payment of the state share when services are not provided according to the 
378.3 	placement criteria established by the commissioner. The commissioner may pay for all or 
378.4 	a portion of improper county chemical dependency placements and bill the county for the 
378.5 	entire payment made when the placement did not comply with criteria established by the 
378.6 	commissioner. The commissioner may make payments to vendors and charge the county 
378.7 	100 percent of the payments if documentation of a county approved placement is received 
378.8 	more than 30 working days, exclusive of weekends and holidays, after the date services 
378.9 	began; or if the county approved invoice is received by the commissioner more than 120 
378.10 	days after the last date of service provided. The commissioner shall not pay vendors until 
378.11 	private insurance company claims have been settled. 

378.12 	Sec. 17. Minnesota Statutes 2006, section 256B.0625, subdivision 23, is amended to 
378.13 	read:
378.14 		Subd. 23.Day treatment services. Medical assistance covers day treatment 
378.15 	services as specified in sections 245.462, subdivision 8, and 245.4871, subdivision 10, that 
378.16 	are provided under contract with the county board. Notwithstanding Minnesota Rules, 
378.17 	part 9505.0323, subpart 15, the commissioner may set authorization thresholds for day 
378.18 	treatment for adults according to section 256B.0625, subdivision 25. Notwithstanding 
378.19 	Minnesota Rules, part 9505.0323, subpart 15, effective July 1, 2004, medical assistance 
378.20 	covers day treatment services for children as specified under section 256B.0943. 

378.21 	Sec. 18. Minnesota Statutes 2006, section 256B.0943, subdivision 6, is amended to 
378.22 	read:
378.23 		Subd. 6.Provider entity clinical infrastructure requirements. (a) To be 
378.24 	an eligible provider entity under this section, a provider entity must have a clinical 
378.25 	infrastructure that utilizes diagnostic assessment, an individualized treatment plan, 
378.26 	service delivery, and individual treatment plan review that are culturally competent, 
378.27 	child-centered, and family-driven to achieve maximum benefit for the client. The provider 
378.28 	entity must review and update the clinical policies and procedures every three years and 
378.29 	must distribute the policies and procedures to staff initially and upon each subsequent 
378.30 	update.
378.31 	(b) The clinical infrastructure written policies and procedures must include policies 
378.32 	and procedures for:
378.33 	(1) providing or obtaining a client's diagnostic assessment that identifies acute and 
378.34 	chronic clinical disorders, co-occurring medical conditions, sources of psychological and 
379.1 	environmental problems, and a functional assessment. The functional assessment must 
379.2 	clearly summarize the client's individual strengths and needs;
379.3 	(2) developing an individual treatment plan that is:
379.4 	(i) based on the information in the client's diagnostic assessment;
379.5 	(ii) developed no later than the end of the first psychotherapy session after the 
379.6 	completion of the client's diagnostic assessment by the mental health professional who 
379.7 	provides the client's psychotherapy;
379.8 	(iii) developed through a child-centered, family-driven planning process that 
379.9 	identifies service needs and individualized, planned, and culturally appropriate 
379.10 	interventions that contain specific treatment goals and objectives for the client and the 
379.11 	client's family or foster family;
379.12 	(iv) reviewed at least once every 90 days and revised, if necessary; and
379.13 	(v) signed by the client or, if appropriate, by the client's parent or other person 
379.14 	authorized by statute to consent to mental health services for the client;
379.15 	(3) developing an individual behavior plan that documents services to be provided 
379.16 	by the mental health behavioral aide. The individual behavior plan must include:
379.17 	(i) detailed instructions on the service to be provided;
379.18 	(ii) time allocated to each service;
379.19 	(iii) methods of documenting the child's behavior;
379.20 	(iv) methods of monitoring the child's progress in reaching objectives; and
379.21 	(v) goals to increase or decrease targeted behavior as identified in the individual 
379.22 	treatment plan;
379.23 	(4) clinical supervision of the mental health practitioner and mental health behavioral 
379.24 	aide. A mental health professional must document the clinical supervision the professional 
379.25 	provides by cosigning individual treatment plans and making entries in the client's record 
379.26 	on supervisory activities. Clinical supervision does not include the authority to make or 
379.27 	terminate court-ordered placements of the child. A clinical supervisor must be available 
379.28 	for urgent consultation as required by the individual client's needs or the situation. Clinical 
379.29 	supervision may occur individually or in a small group to discuss treatment and review 
379.30 	progress toward goals. The focus of clinical supervision must be the client's treatment 
379.31 	needs and progress and the mental health practitioner's or behavioral aide's ability to 
379.32 	provide services;
379.33 	(4a) CTSS certified provider entities providing day treatment programs must meet 
379.34 	the conditions in items (i) to (iii):
380.1 	(i) the provider supervisor must be present and available on the premises more 
380.2 	than 50 percent of the time in a five-working-day period during which the supervisee is 
380.3 	providing a mental health service;
380.4 	(ii) the diagnosis and the client's individual treatment plan or a change in the 
380.5 	diagnosis or individual treatment plan must be made by or reviewed, approved, and signed 
380.6 	by the provider supervisor; and
380.7 	(iii) every 30 days, the supervisor must review and sign the record of the client's care 
380.8 	for all activities in the preceding 30-day period;
380.9 	(4b) for all other services provided under CTSS, clinical supervision standards 
380.10 	provided in items (i) to (iii) must be used:
380.11 	(i) medical assistance shall reimburse a mental health practitioner who maintains a 
380.12 	consulting relationship with a mental health professional who accepts full professional 
380.13 	responsibility and is present on site for at least one observation during the first 12 hours 
380.14 	in which the mental health practitioner provides the individual, family, or group skills 
380.15 	training to the child or the child's family;
380.16 	(ii) thereafter, the mental health professional is required to be present on site for 
380.17 	observation as clinically appropriate when the mental health practitioner is providing 
380.18 	individual, family, or group skills training to the child or the child's family; and
380.19 	(iii) the observation must be a minimum of one clinical unit. The on-site presence of 
380.20 	the mental health professional must be documented in the child's record and signed by the 
380.21 	mental health professional who accepts full professional responsibility;
380.22 	(5) providing direction to a mental health behavioral aide. For entities that employ 
380.23 	mental health behavioral aides, the clinical supervisor must be employed by the provider 
380.24 	entity or other certified children's therapeutic supports and services provider entity to 
380.25 	ensure necessary and appropriate oversight for the client's treatment and continuity 
380.26 	of care. The mental health professional or mental health practitioner giving direction 
380.27 	must begin with the goals on the individualized treatment plan, and instruct the mental 
380.28 	health behavioral aide on how to construct therapeutic activities and interventions that 
380.29 	will lead to goal attainment. The professional or practitioner giving direction must also 
380.30 	instruct the mental health behavioral aide about the client's diagnosis, functional status, 
380.31 	and other characteristics that are likely to affect service delivery. Direction must also 
380.32 	include determining that the mental health behavioral aide has the skills to interact with 
380.33 	the client and the client's family in ways that convey personal and cultural respect and 
380.34 	that the aide actively solicits information relevant to treatment from the family. The aide 
380.35 	must be able to clearly explain the activities the aide is doing with the client and the 
380.36 	activities' relationship to treatment goals. Direction is more didactic than is supervision 
381.1 	and requires the professional or practitioner providing it to continuously evaluate the 
381.2 	mental health behavioral aide's ability to carry out the activities of the individualized 
381.3 	treatment plan and the individualized behavior plan. When providing direction, the 
381.4 	professional or practitioner must:
381.5 	(i) review progress notes prepared by the mental health behavioral aide for accuracy 
381.6 	and consistency with diagnostic assessment, treatment plan, and behavior goals and the 
381.7 	professional or practitioner must approve and sign the progress notes;
381.8 	(ii) identify changes in treatment strategies, revise the individual behavior plan, 
381.9 	and communicate treatment instructions and methodologies as appropriate to ensure 
381.10 	that treatment is implemented correctly;
381.11 	(iii) demonstrate family-friendly behaviors that support healthy collaboration among 
381.12 	the child, the child's family, and providers as treatment is planned and implemented;
381.13 	(iv) ensure that the mental health behavioral aide is able to effectively communicate 
381.14 	with the child, the child's family, and the provider; and
381.15 	(v) record the results of any evaluation and corrective actions taken to modify the 
381.16 	work of the mental health behavioral aide;
381.17 	(6) providing service delivery that implements the individual treatment plan and 
381.18 	meets the requirements under subdivision 9; and
381.19 	(7) individual treatment plan review. The review must determine the extent to which 
381.20 	the services have met the goals and objectives in the previous treatment plan. The review 
381.21 	must assess the client's progress and ensure that services and treatment goals continue to 
381.22 	be necessary and appropriate to the client and the client's family or foster family. Revision 
381.23 	of the individual treatment plan does not require a new diagnostic assessment unless the 
381.24 	client's mental health status has changed markedly. The updated treatment plan must be 
381.25 	signed by the client, if appropriate, and by the client's parent or other person authorized by 
381.26 	statute to give consent to the mental health services for the child.

381.27 	Sec. 19. Minnesota Statutes 2006, section 256B.0943, subdivision 9, is amended to 
381.28 	read:
381.29 		Subd. 9.Service delivery criteria. (a) In delivering services under this section, a 
381.30 	certified provider entity must ensure that:
381.31 	(1) each individual provider's caseload size permits the provider to deliver services 
381.32 	to both clients with severe, complex needs and clients with less intensive needs. The 
381.33 	provider's caseload size should reasonably enable the provider to play an active role in 
381.34 	service planning, monitoring, and delivering services to meet the client's and client's 
381.35 	family's needs, as specified in each client's individual treatment plan;
382.1 	(2) site-based programs, including day treatment and preschool programs, provide 
382.2 	staffing and facilities to ensure the client's health, safety, and protection of rights, and that 
382.3 	the programs are able to implement each client's individual treatment plan;
382.4 	(3) a day treatment program is provided to a group of clients by a multidisciplinary 
382.5 	team under the clinical supervision of a mental health professional. The day treatment 
382.6 	program must be provided in and by: (i) an outpatient hospital accredited by the Joint 
382.7 	Commission on Accreditation of Health Organizations and licensed under sections 
382.8 	144.50 to 144.55; (ii) a community mental health center under section 245.62; and (iii) 
382.9 	an entity that is under contract with the county board to operate a program that meets 
382.10 	the requirements of sections 245.4712, subdivision 2, and 245.4884, subdivision 2, 
382.11 	and Minnesota Rules, parts 9505.0170 to 9505.0475. The day treatment program must 
382.12 	stabilize the client's mental health status while developing and improving the client's 
382.13 	independent living and socialization skills. The goal of the day treatment program must be 
382.14 	to reduce or relieve the effects of mental illness and provide training to enable the client 
382.15 	to live in the community. The program must be available at least one day a week for a 
382.16 	minimum three-hour time block. The three-hour time block must include at least one 
382.17 	hour, but no more than two hours, of individual or group psychotherapy. The remainder 
382.18 	of the three-hour time block may include recreation therapy, socialization therapy, or 
382.19 	independent living skills therapy, but only if the therapies are included in the client's 
382.20 	individual treatment plan. Day treatment programs are not part of inpatient or residential 
382.21 	treatment services; and 
382.22 	(4) a preschool program is a structured treatment program offered to a child who 
382.23 	is at least 33 months old, but who has not yet reached the first day of kindergarten, by a 
382.24 	preschool multidisciplinary team in a day program licensed under Minnesota Rules, parts 
382.25 	9503.0005 to 9503.0175. The program must be available at least one day a week for a 
382.26 	minimum two-hour time block. The structured treatment program may include individual 
382.27 	or group psychotherapy and recreation therapy, socialization therapy, or independent 
382.28 	living skills therapy, if included in the client's individual treatment plan.
382.29 	(b) A provider entity must deliver the service components of children's therapeutic 
382.30 	services and supports in compliance with the following requirements:
382.31 	(1) individual, family, and group psychotherapy must be delivered as specified in 
382.32 	Minnesota Rules, part 9505.0323;
382.33 	(2) individual, family, or group skills training must be provided by a mental health 
382.34 	professional or a mental health practitioner who has a consulting relationship with a 
382.35 	mental health professional who accepts full professional responsibility for the training;
383.1 	(3) crisis assistance must be time-limited and designed to resolve or stabilize crisis 
383.2 	through arrangements for direct intervention and support services to the child and the 
383.3 	child's family. Crisis assistance must utilize resources designed to address abrupt or 
383.4 	substantial changes in the functioning of the child or the child's family as evidenced by 
383.5 	a sudden change in behavior with negative consequences for well being, a loss of usual 
383.6 	coping mechanisms, or the presentation of danger to self or others;
383.7 	(4) medically necessary services that are provided by a mental health behavioral 
383.8 	aide must be designed to improve the functioning of the child and support the family in 
383.9 	activities of daily and community living. A mental health behavioral aide must document 
383.10 	the delivery of services in written progress notes. The mental health behavioral aide 
383.11 	must implement goals in the treatment plan for the child's emotional disturbance that 
383.12 	allow the child to acquire developmentally and therapeutically appropriate daily living 
383.13 	skills, social skills, and leisure and recreational skills through targeted activities. These 
383.14 	activities may include:
383.15 	(i) assisting a child as needed with skills development in dressing, eating, and 
383.16 	toileting;
383.17 	(ii) assisting, monitoring, and guiding the child to complete tasks, including 
383.18 	facilitating the child's participation in medical appointments;
383.19 	(iii) observing the child and intervening to redirect the child's inappropriate behavior;
383.20 	(iv) assisting the child in using age-appropriate self-management skills as related 
383.21 	to the child's emotional disorder or mental illness, including problem solving, decision 
383.22 	making, communication, conflict resolution, anger management, social skills, and 
383.23 	recreational skills;
383.24 	(v) implementing deescalation techniques as recommended by the mental health 
383.25 	professional;
383.26 	(vi) implementing any other mental health service that the mental health professional 
383.27 	has approved as being within the scope of the behavioral aide's duties; or
383.28 	(vii) assisting the parents to develop and use parenting skills that help the child 
383.29 	achieve the goals outlined in the child's individual treatment plan or individual behavioral 
383.30 	plan. Parenting skills must be directed exclusively to the child's treatment; and
383.31 	(5) direction of a mental health behavioral aide must include the following:
383.32 	(i) a total of one hour of on-site observation by a mental health professional during 
383.33 	the first 12 hours of service provided to a child;
383.34 	(ii) ongoing on-site observation by a mental health professional or mental health 
383.35 	practitioner for at least a total of one hour during every 40 hours of service provided 
383.36 	to a child; and
384.1 	(iii) immediate accessibility of the mental health professional or mental health 
384.2 	practitioner to the mental health behavioral aide during service provision.

384.3 	Sec. 20. Minnesota Statutes 2006, section 256B.0943, subdivision 11, is amended to 
384.4 	read:
384.5 		Subd. 11.Documentation and billing. (a) A provider entity must document the 
384.6 	services it provides under this section. The provider entity must ensure that the entity's 
384.7 	documentation standards meet the requirements of federal and state laws. Services billed 
384.8 	under this section that are not documented according to this subdivision shall be subject to 
384.9 	monetary recovery by the commissioner. The provider entity may not bill for anything 
384.10 	other than direct service time.
384.11 	(b) An individual mental health provider must promptly document the following 
384.12 	in a client's record after providing services to the client:
384.13 	(1) each occurrence of the client's mental health service, including the date, type, 
384.14 	length, and scope of the service;
384.15 	(2) the name of the person who gave the service;
384.16 	(3) contact made with other persons interested in the client, including representatives 
384.17 	of the courts, corrections systems, or schools. The provider must document the name 
384.18 	and date of each contact;
384.19 	(4) any contact made with the client's other mental health providers, case manager, 
384.20 	family members, primary caregiver, legal representative, or the reason the provider did 
384.21 	not contact the client's family members, primary caregiver, or legal representative, if 
384.22 	applicable; and
384.23 	(5) required clinical supervision, as appropriate.

384.24 	Sec. 21. Minnesota Statutes 2006, section 256B.0943, subdivision 12, is amended to 
384.25 	read:
384.26 		Subd. 12.Excluded services. The following services are not eligible for medical 
384.27 	assistance payment as children's therapeutic services and supports:
384.28 	(1) service components of children's therapeutic services and supports 
384.29 	simultaneously provided by more than one provider entity unless prior authorization is 
384.30 	obtained;
384.31 	(2) children's therapeutic services and supports provided in violation of medical 
384.32 	assistance policy in Minnesota Rules, part 9505.0220;
385.1 	(3) mental health behavioral aide services provided by a personal care assistant who 
385.2 	is not qualified as a mental health behavioral aide and employed by a certified children's 
385.3 	therapeutic services and supports provider entity;
385.4 	(4) service components of CTSS that are the responsibility of a residential or 
385.5 	program license holder, including foster care providers under the terms of a service 
385.6 	agreement or administrative rules governing licensure; and
385.7 	(5) adjunctive activities that may be offered by a provider entity but are not 
385.8 	otherwise covered by medical assistance, including:
385.9 	(i) a service that is primarily recreation oriented or that is provided in a setting that 
385.10 	is not medically supervised. This includes sports activities, exercise groups, activities 
385.11 	such as craft hours, leisure time, social hours, meal or snack time, trips to community 
385.12 	activities, and tours;
385.13 	(ii) a social or educational service that does not have or cannot reasonably be 
385.14 	expected to have a therapeutic outcome related to the client's emotional disturbance;
385.15 	(iii) consultation with other providers or service agency staff about the care or 
385.16 	progress of a client;
385.17 	(iv) prevention or education programs provided to the community; and
385.18 	(v) treatment for clients with primary diagnoses of alcohol or other drug abuse.; and
385.19 	(6) activities that are not direct service time.

385.20 	Sec. 22. Minnesota Statutes 2006, section 256E.35, subdivision 2, is amended to read:
385.21 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
385.22 	(b) "Family asset account" means a savings account opened by a household 
385.23 	participating in the Minnesota family assets for independence initiative.
385.24 	(c) "Fiduciary organization" means:
385.25 	(1) a community action agency that has obtained recognition under section 268.53
385.26 	256E.31;
385.27 	(2) a federal community development credit union serving the seven-county 
385.28 	metropolitan area; or
385.29 	(3) a women-oriented economic development agency serving the seven-county 
385.30 	metropolitan area.
385.31 	(d) "Financial institution" means a bank, bank and trust, savings bank, savings 
385.32 	association, or credit union, the deposits of which are insured by the Federal Deposit 
385.33 	Insurance Corporation or the National Credit Union Administration.
385.34 	(e) "Permissible use" means:
386.1 	(1) postsecondary educational expenses at an accredited public postsecondary 
386.2 	institution including books, supplies, and equipment required for courses of instruction;
386.3 	(2) acquisition costs of acquiring, constructing, or reconstructing a residence, 
386.4 	including any usual or reasonable settlement, financing, or other closing costs;
386.5 	(3) business capitalization expenses for expenditures on capital, plant, equipment, 
386.6 	working capital, and inventory expenses of a legitimate business pursuant to a business 
386.7 	plan approved by the fiduciary organization; and
386.8 	(4) acquisition costs of a principal residence within the meaning of section 1034 of 
386.9 	the Internal Revenue Code of 1986 which do not exceed 100 percent of the average area 
386.10 	purchase price applicable to the residence determined according to section 143(e)(2) and 
386.11 	(3) of the Internal Revenue Code of 1986.
386.12 	(f) "Household" means all individuals who share use of a dwelling unit as primary 
386.13 	quarters for living and eating separate from other individuals.

386.14 	Sec. 23. Laws 2005, chapter 98, article 3, section 25, is amended to read:
386.15 	Sec. 25. REPEALER.
 386.16 	Minnesota Statutes 2004, sections 245.713, subdivisions 2 and subdivision 4; 
386.17 	245.716; and 626.5551, subdivision 4, are repealed.

386.18 	EFFECTIVE DATE. This section is effective retroactively from August 1, 2005.

386.19 	Sec. 24. FEDERAL GRANTS.
 386.20 	The Board of Pharmacy shall apply for any applicable federal grants or other nonstate 
386.21 	funds to establish and fully implement the prescription electronic reporting system.

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

386.23 	Sec. 25. BOARD OF PHARMACY.
 386.24 	The Board of Pharmacy shall not increase the license fees of pharmacists or 
386.25 	pharmacies in order to adequately fund the prescription electronic reporting system under 
386.26 	Minnesota Statutes, section 152.126, without specific authority from the legislature.

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

386.28 	Sec. 26. BOARD OF MEDICAL PRACTICE.
 386.29 	The Board of Medical Practice shall convene a work group to discuss the appropriate 
386.30 	prescribing of controlled substances listed in Minnesota Statutes, section 152.02, 
386.31 	subdivisions 3 and 4, and those substances defined by the Board of Pharmacy under 
387.1 	Minnesota Statutes, section 152.02, subdivisions 7, 8, and 12, for pain management, and 
387.2 	shall report to the legislature by December 15, 2007.

387.3 	Sec. 27.  REPEALER.
 387.4 	(a) Minnesota Statutes 2006, sections 254A.02, subdivisions 7, 9, 12, 14, 15, and 16; 
387.5 	254A.085; 254A.086; 254A.12; 254A.14; 254A.15; 254A.16, subdivision 5; 254A.175; 
387.6 	254A.18; 256J.561, subdivision 1; 256J.62, subdivision 9; and 256J.65, are repealed.
387.7 	(b) Minnesota Rules, part 9503.0035, subpart 2, is repealed.

387.8 	ARTICLE 12
387.9 	MISCELLANEOUS

387.10 	Section 1. Minnesota Statutes 2006, section 43A.23, subdivision 1, is amended to read:
387.11 		Subdivision 1.General. (a) The commissioner is authorized to request bids and 
387.12 	to enter into contracts with parties which in the judgment of the commissioner are best 
387.13 	qualified to provide service to the benefit plans. Contracts entered into are not subject 
387.14 	to the requirements of sections 16C.16 to 16C.19. The commissioner may negotiate 
387.15 	premium rates and coverage. Contracts to underwrite the benefit plans must be bid or 
387.16 	negotiated separately from contracts to service the benefit plans, which may be awarded 
387.17 	only on the basis of competitive bids. The commissioner shall consider the cost of the 
387.18 	plans, conversion options relating to the contracts, service capabilities, character, financial 
387.19 	position, and reputation of the carriers, and any other factors which the commissioner 
387.20 	deems appropriate. Each benefit contract must be for a uniform term of at least one year, 
387.21 	but may be made automatically renewable from term to term in the absence of notice of 
387.22 	termination by either party. A carrier licensed under chapter 62A is exempt from the taxes 
387.23 	imposed by chapter 297I on premiums paid to it by the state.
387.24 	(b) All self-insured hospital and medical service products must comply with coverage 
387.25 	mandates, data reporting, and consumer protection requirements applicable to the licensed 
387.26 	carrier administering the product, had the product been insured, including chapters 62J, 
387.27 	62M, and 62Q. Any self-insured products that limit coverage to a network of providers 
387.28 	or provide different levels of coverage between network and nonnetwork providers shall 
387.29 	comply with section 62D.123 and geographic access standards for health maintenance 
387.30 	organizations adopted by the commissioner of health in rule under chapter 62D.
387.31 	(c) Notwithstanding paragraph (b), a self-insured hospital and medical product 
387.32 	offered under sections 43A.22 to 43A.30 is not required to extend dependent coverage to 
387.33 	an eligible employee's unmarried child under the age of 25 to the full extent required under 
387.34 	chapters 62A and 62L. Dependent coverage must, at a minimum, extend to an eligible 
388.1 	employee's unmarried child who is under the age of 19 or an unmarried child under the 
388.2 	age of 25 who is a full-time student. The definition of "full-time student" for purposes 
388.3 	of this paragraph includes any student who by reason of illness, injury, or physical or 
388.4 	mental disability as documented by a physician is unable to carry what the educational 
388.5 	institution considers a full-time course load so long as the student's course load is at least 
388.6 	60 percent of what otherwise is considered by the institution to be a full-time course load. 
388.7 	Any notice regarding termination of coverage due to attainment of the limiting age must 
388.8 	include information about this definition of "full-time student."

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

388.10 	Sec. 2. Minnesota Statutes 2006, section 62E.02, subdivision 7, is amended to read:
388.11 		Subd. 7.Dependent. "Dependent" means a spouse or unmarried child under the 
388.12 	age of 19 years, a dependent child who is a student under the age of 25, or a dependent 
388.13 	child of any age who is disabled.

388.14 	EFFECTIVE DATE. This section is effective January 1, 2008, and applies to 
388.15 	coverage offered, sold, issued, or renewed on or after that date.

388.16 	Sec. 3. Minnesota Statutes 2006, section 62H.02, is amended to read:
388.17 	62H.02 REQUIRED PROVISIONS.
388.18 	(a) A joint self-insurance plan must include aggregate excess stop-loss coverage and 
388.19 	individual excess stop-loss coverage provided by an insurance company licensed by the 
388.20 	state of Minnesota. 
388.21 	(b) Aggregate excess stop-loss coverage must include provisions to cover incurred, 
388.22 	unpaid claim liability in the event of plan termination. In addition,
388.23 	(c) The plan of self-insurance must have participating employers fund an amount at 
388.24 	least equal to the point at which the excess or stop-loss insurer has contracted to assume 
388.25 	100 percent of additional liability. 
388.26 	(d) A joint self-insurance plan must submit its proposed excess or stop-loss insurance 
388.27 	contract to the commissioner of commerce at least 30 days prior to the proposed plan's 
388.28 	effective date and at least 30 days subsequent to any renewal date. The commissioner shall 
388.29 	review the contract to determine if they meet the standards established by sections 62H.01
388.30 	to 62H.08 and respond within a 30-day period. 
388.31 	(e) Any excess or stop-loss insurance plan must contain a provision that the excess 
388.32 	or stop-loss insurer will give the plan and the commissioner of commerce a minimum of 
388.33 	180 days' notice of termination or nonrenewal. If the plan fails to secure replacement 
389.1 	coverage within 60 days after receipt of the notice of cancellation or nonrenewal, the 
389.2 	commissioner shall issue an order providing for the orderly termination of the plan. 
389.3 	(f) The commissioner may waive the requirements of this section and of any rule 
389.4 	relating to the requirements of this section, if the commissioner determines that a joint 
389.5 	self-insurance plan has established alternative arrangements that fully fund the plan's 
389.6 	liability or incurred but unpaid claims. The commissioner may not waive the requirement 
389.7 	that a joint self-insurance plan have excess stop-loss coverage. 

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

389.9 	Sec. 4. Minnesota Statutes 2006, section 62J.07, subdivision 1, is amended to read:
389.10 		Subdivision 1.Legislative oversight. The Legislative Commission on Health 
389.11 	Care Access reviews the activities of the commissioner of health, the Health Technology 
389.12 	Advisory Committee, and all other state agencies involved in the implementation and 
389.13 	administration of this chapter, including efforts to obtain federal approval through waivers 
389.14 	and other means shall make recommendations to the legislature on how to achieve the 
389.15 	goal of universal health coverage as described in section 62Q.165. The recommendations 
389.16 	shall include a timetable in which measurable progress must be achieved toward this goal. 
389.17 	The commission shall submit to the legislature by January 15, 2008, the recommendations 
389.18 	and corresponding timetable.

389.19 	Sec. 5. Minnesota Statutes 2006, section 62J.07, subdivision 3, is amended to read:
389.20 		Subd. 3.Reports to the commission. The commissionercommissioners of 
389.21 	health, human services, commerce, and the Health Technology Advisory Committee shall 
389.22 	report on their activities annually and at other times at the request of the Legislative 
389.23 	Commission on Health Care Access. The commissioners of health, commerce, and human 
389.24 	services shall provide periodic reports to the legislative commission on the progress of 
389.25 	rulemaking that is authorized or required under this chapter and shall notify members 
389.26 	of the commission when a draft of a proposed rule has been completed and scheduled 
389.27 	for publication in the State Register. At the request of a member of the commission, 
389.28 	a commissioner shall provide a description and a copy of a proposed rule other state 
389.29 	agencies shall provide assistance and technical support to the commission at the request 
389.30 	of the commission. The commission may convene subcommittees to provide additional 
389.31 	assistance and advice to the commission.

389.32 	Sec. 6. Minnesota Statutes 2006, section 62L.02, subdivision 11, is amended to read:
390.1 		Subd. 11.Dependent. "Dependent" means an eligible employee's spouse, 
390.2 	unmarried child who is under the age of 19 years, unmarried child under the age of 25 
390.3 	years who is a full-time student as defined in section 62A.301, dependent child of any age 
390.4 	who is disabled and who meets the eligibility criteria in section 62A.14, subdivision 2, 
390.5 	or any other person whom state or federal law requires to be treated as a dependent for 
390.6 	purposes of health plans. For the purpose of this definition, a child includes a child for 
390.7 	whom the employee or the employee's spouse has been appointed legal guardian and an 
390.8 	adoptive child as provided in section 62A.27. 

390.9 	EFFECTIVE DATE. This section is effective January 1, 2008, and applies to 
390.10 	coverage offered, sold, issued, and renewed on or after that date.

390.11 	Sec. 7. Minnesota Statutes 2006, section 151.37, subdivision 2, is amended to read:
390.12 		Subd. 2.Prescribing and filing. (a) A licensed practitioner in the course of 
390.13 	professional practice only, may prescribe, administer, and dispense a legend drug, and may 
390.14 	cause the same to be administered by a nurse, a physician assistant, or medical student or 
390.15 	resident under the practitioner's direction and supervision, and may cause a person who 
390.16 	is an appropriately certified, registered, or licensed health care professional to prescribe, 
390.17 	dispense, and administer the same within the expressed legal scope of the person's practice 
390.18 	as defined in Minnesota Statutes. A licensed practitioner may prescribe a legend drug, 
390.19 	without reference to a specific patient, by directing a nurse, pursuant to section 148.235, 
390.20 	subdivisions 8 and 9, physician assistant, or medical student or resident to adhere to 
390.21 	a particular practice guideline or protocol when treating patients whose condition falls 
390.22 	within such guideline or protocol, and when such guideline or protocol specifies the 
390.23 	circumstances under which the legend drug is to be prescribed and administered. An 
390.24 	individual who verbally, electronically, or otherwise transmits a written, oral, or electronic 
390.25 	order, as an agent of a prescriber, shall not be deemed to have prescribed the legend drug. 
390.26 	This paragraph applies to a physician assistant only if the physician assistant meets the 
390.27 	requirements of section 147A.18. 
390.28 	(b) A licensed practitioner that dispenses for profit a legend drug that is to be 
390.29 	administered orally, is ordinarily dispensed by a pharmacist, and is not a vaccine, must 
390.30 	file with the practitioner's licensing board a statement indicating that the practitioner 
390.31 	dispenses legend drugs for profit, the general circumstances under which the practitioner 
390.32 	dispenses for profit, and the types of legend drugs generally dispensed. It is unlawful to 
390.33 	dispense legend drugs for profit after July 31, 1990, unless the statement has been filed 
390.34 	with the appropriate licensing board. For purposes of this paragraph, "profit" means (1) 
390.35 	any amount received by the practitioner in excess of the acquisition cost of a legend drug 
391.1 	for legend drugs that are purchased in prepackaged form, or (2) any amount received 
391.2 	by the practitioner in excess of the acquisition cost of a legend drug plus the cost of 
391.3 	making the drug available if the legend drug requires compounding, packaging, or other 
391.4 	treatment. The statement filed under this paragraph is public data under section 13.03. 
391.5 	This paragraph does not apply to a licensed doctor of veterinary medicine or a registered 
391.6 	pharmacist. Any person other than a licensed practitioner with the authority to prescribe, 
391.7 	dispense, and administer a legend drug under paragraph (a) shall not dispense for profit. 
391.8 	To dispense for profit does not include dispensing by a community health clinic when the 
391.9 	profit from dispensing is used to meet operating expenses. 
391.10 	(c) A prescription or drug order for a legend drug is not valid if it is based solely 
391.11 	on an online questionnaire, unless it can be established that the prescription or order was 
391.12 	based on a documented patient evaluation adequate to establish a diagnosis and identify 
391.13 	underlying conditions and contraindications to treatment.

391.14 	Sec. 8. Minnesota Statutes 2006, section 152.11, is amended by adding a subdivision to 
391.15 	read:
391.16 		Subd. 2d.Identification requirement for schedule II or III controlled substance.
 391.17 	(a) No person may dispense a controlled substance included in schedule II or III without 
391.18 	requiring the person purchasing the controlled substance, who need not be the person for 
391.19 	whom the controlled substance prescription is written, to present valid photographic 
391.20 	identification, unless the person purchasing the controlled substance, or if applicable the 
391.21 	person for whom the controlled substance prescription is written, is known to the dispenser.
391.22 	(b) This subdivision applies only to purchases of controlled substances that are not 
391.23 	covered, in whole or in part, by a health plan company or other third-party payor. The 
391.24 	Board of Pharmacy shall report to the legislature by July 1, 2009, on the effect of this 
391.25 	subdivision. The board shall include in the report the incidence of complaints, if any, 
391.26 	generated by the requirements of this subdivision and whether this subdivision is creating 
391.27 	barriers to pharmaceutical access.

391.28 	Sec. 9. Minnesota Statutes 2006, section 169A.70, subdivision 4, is amended to read:
391.29 		Subd. 4.Assessor standards; rules; assessment time limits. A chemical use 
391.30 	assessment required by this section must be conducted by an assessor appointed by the 
391.31 	court. The assessor must meet the training and qualification requirements of rules adopted 
391.32 	by the commissioner of human services under section 254A.03, subdivision 3 (chemical 
391.33 	dependency treatment rules). Notwithstanding section 13.82 (law enforcement data), the 
391.34 	assessor shall have access to any police reports, laboratory test results, and other law 
392.1 	enforcement data relating to the current offense or previous offenses that are necessary 
392.2 	to complete the evaluation. An assessor providing an assessment under this section may 
392.3 	not have any direct or shared financial interest or referral relationship resulting in shared 
392.4 	financial gain with a treatment provider, except as authorized under section 254A.20, 
392.5 	subdivision 3. If an independent assessor is not available, the court may use the services 
392.6 	of an assessor authorized to perform assessments for the county social services agency 
392.7 	under a variance granted under rules adopted by the commissioner of human services 
392.8 	under section 254A.03, subdivision 3. An appointment for the defendant to undergo the 
392.9 	assessment must be made by the court, a court services probation officer, or the court 
392.10 	administrator as soon as possible but in no case more than one week after the defendant's 
392.11 	court appearance. The assessment must be completed no later than three weeks after the 
392.12 	defendant's court appearance. If the assessment is not performed within this time limit, the 
392.13 	county where the defendant is to be sentenced shall perform the assessment. The county 
392.14 	of financial responsibility must be determined under chapter 256G. 

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

392.16 	Sec. 10. [254A.20] CHEMICAL USE ASSESSMENTS.
392.17 		Subdivision 1.Persons arrested outside of home county. When a chemical use 
392.18 	assessment is required under Minnesota Rules, parts 9530.6600 to 9530.6655, for a person 
392.19 	who is arrested and taken into custody by a peace officer outside of the person's county 
392.20 	of residence, the assessment must be completed by the person's county of residence no 
392.21 	later than three weeks after the assessment is initially requested. If the assessment is 
392.22 	not performed within this time limit, the county where the person is to be sentenced 
392.23 	shall perform the assessment. The county of financial responsibility is determined under 
392.24 	chapter 256G.
392.25 		Subd. 2.Probation officer as contact. When a chemical use assessment is required 
392.26 	under Minnesota Rules, parts 9530.6600 to 9530.6655, for a person who is on probation 
392.27 	or under other correctional supervision, the assessor, either orally or in writing, shall 
392.28 	contact the person's probation officer to verify or supplement the information provided 
392.29 	by the person.
392.30 		Subd. 3.Financial conflicts of interest. (a) Except as provided in paragraph (b), an 
392.31 	assessor conducting a chemical use assessment under Minnesota Rules, parts 9530.6600 
392.32 	to 9530.6655, may not have any direct or shared financial interest or referral relationship 
392.33 	resulting in shared financial gain with a treatment provider.
392.34 	(b) A county may contract with an assessor having a conflict described in paragraph 
392.35 	(a) if the county documents that:
393.1 	(1) the assessor is employed by a culturally specific service provider or a service 
393.2 	provider with a program designed to treat individuals of a specific age, sex, or sexual 
393.3 	preference; 
393.4 	(2) the county does not employ a sufficient number of qualified assessors and the 
393.5 	only qualified assessors available in the county have a direct or shared financial interest or 
393.6 	a referral relationship resulting in shared financial gain with a treatment provider; or 
393.7 	(3) the county social service agency has an existing relationship with an assessor 
393.8 	or service provider and elects to enter into a contract with that assessor to provide both 
393.9 	assessment and treatment under circumstances specified in the county's contract, provided 
393.10 	the county retains responsibility for making placement decisions.
393.11 	An assessor under this paragraph may not place clients in treatment. The assessor 
393.12 	shall gather required information and provide it to the county along with any required 
393.13 	documentation. The county shall make all placement decisions for clients assessed by 
393.14 	assessors under this paragraph.

393.15 	EFFECTIVE DATE. This section is effective July 1, 2007, except for subdivision 
393.16 	3, which is effective the day following final enactment.

393.17 	Sec. 11. [256B.0636] CONTROLLED SUBSTANCE PRESCRIPTIONS; ABUSE 
393.18 	PREVENTION.
393.19 	The commissioner of human services shall develop and implement a plan to:
393.20 	(1) review utilization patterns of Minnesota health care program enrollees for 
393.21 	controlled substances listed in section 152.02, subdivisions 3 and 4, and those substances 
393.22 	defined by the Board of Pharmacy under section 152.02, subdivisions 8 and 12;
393.23 	(2) develop a mechanism to address abuses both for fee-for-service Minnesota health 
393.24 	care program enrollees and those enrolled in managed care plans; and
393.25 	(3) provide education to Minnesota health care program enrollees on the proper use 
393.26 	of controlled substances.
393.27 	For purposes of this section, "Minnesota health care program" means medical 
393.28 	assistance, MinnesotaCare, or general assistance medical care.

393.29 	Sec. 12. Minnesota Statutes 2006, section 609.115, subdivision 8, is amended to read:
393.30 		Subd. 8.Chemical use assessment required. (a) If a person is convicted of a 
393.31 	felony, the probation officer shall determine in the report prepared under subdivision 1 
393.32 	whether or not alcohol or drug use was a contributing factor to the commission of the 
393.33 	offense. If so, the report shall contain the results of a chemical use assessment conducted 
394.1 	in accordance with this subdivision. The probation officer shall make an appointment for 
394.2 	the defendant to undergo the chemical use assessment if so indicated.
394.3 	(b) The chemical use assessment report must include a recommended level of 
394.4 	care for the defendant in accordance with the criteria contained in rules adopted by the 
394.5 	commissioner of human services under section 254A.03, subdivision 3. The assessment 
394.6 	must be conducted by an assessor qualified under rules adopted by the commissioner of 
394.7 	human services under section 254A.03, subdivision 3. An assessor providing a chemical 
394.8 	use assessment may not have any direct or shared financial interest or referral relationship 
394.9 	resulting in shared financial gain with a treatment provider, except as authorized under 
394.10 	section 254A.20, subdivision 3. If an independent assessor is not available, the probation 
394.11 	officer may use the services of an assessor authorized to perform assessments for the 
394.12 	county social services agency under a variance granted under rules adopted by the 
394.13 	commissioner of human services under section 254A.03, subdivision 3. 

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

394.15 	Sec. 13. INTERPRETER SERVICES WORK GROUP.
 394.16 	(a) The commissioner of health shall convene a work group of interested parties to 
394.17 	discuss the provision of interpreter services to patients in medical and dental care settings.
394.18 	(b) The work group shall develop findings and recommendations on the following:
394.19 	(1) ensuring access to interpreter services;
394.20 	(2) compliance with requirements of federal law and guidance;
394.21 	(3) developing a quality assurance program to ensure the quality of health care 
394.22 	interpreting services, including requirements for training and establishing a certification 
394.23 	process; and
394.24 	(4) identifying broad-based funding mechanisms for interpreter services.
394.25 	(c) The work group shall report findings and recommendations to the commissioner 
394.26 	of health and to the chairs of the health policy and finance committees in the house and 
394.27 	senate by January 15, 2008.
394.28 	(d) The work group expires the day following the submission of the report required 
394.29 	by paragraph (c).

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

394.31 	Sec. 14. AGRICULTURAL COOPERATIVE HEALTH PLAN FOR FARMERS.
 394.32 		Subdivision 1.Pilot project requirements. Notwithstanding contrary provisions of 
394.33 	Minnesota Statutes, chapter 62H, the following apply to a joint self-insurance pilot project 
395.1 	administered by a trust sponsored by one or more agricultural cooperatives organized 
395.2 	under Minnesota Statutes, chapter 308A, or under a federal charter for the purpose of 
395.3 	offering health coverage to members of the cooperatives and their families, provided the 
395.4 	project satisfies the other requirements of Minnesota Statutes, chapter 62H:
395.5 	(1) Minnesota Statutes, section 62H.02, paragraph (b), does not apply;
395.6 	(2) the notice period required under Minnesota Statutes, section 62H.02, paragraph 
395.7 	(e), is 90 days;
395.8 	(3) a joint self-insurance plan may elect to treat the sale of a health plan to or for 
395.9 	an employer that has only one eligible employee who has not waived coverage as the 
395.10 	sale of an individual health plan as allowed under Minnesota Statutes, section 62L.02, 
395.11 	subdivision 26;
395.12 	(4) Minnesota Statutes, section 297I.05, subdivision 12, paragraph (c), applies; and
395.13 	(5) the trust must pay the assessment for the Minnesota Comprehensive Health 
395.14 	Association as provided under Minnesota Statutes, section 62E.11.
395.15 		Subd. 2.Evaluation and renewal. The pilot project authorized under this section 
395.16 	is for a period of four years from the date of initial enrollment. The commissioner of 
395.17 	commerce shall grant an extension of four additional years if the trust provides evidence 
395.18 	that it remains in compliance with the requirements of this section and other applicable 
395.19 	laws and rules. If the commissioner determines that the operation of the trust has not 
395.20 	improved access, expanded health plan choices, or improved the affordability of health 
395.21 	coverage for farm families, or that it has significantly damaged access, choice, or 
395.22 	affordability for other consumers not enrolled in the trust, the commissioner shall provide 
395.23 	at least 180 days' advance written notice to the trust and to the chairs of the senate and 
395.24 	house finance and policy committees with jurisdiction over health and insurance of the 
395.25 	commissioner's intention not to renew the pilot project at the expiration of a four-year 
395.26 	period.

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

395.28 	Sec. 15. HEALTH PLAN PURCHASING POOL STUDY GROUP.
 395.29 		Subdivision 1.Creation; membership. (a) A health plan purchasing pool study 
395.30 	group is created to study and make recommendations regarding the creation of a voluntary, 
395.31 	statewide health plan purchasing pool that would contract directly with providers to 
395.32 	provide affordable health coverage to eligible Minnesota residents. The study group is 
395.33 	composed of: 
395.34 	(1) three members of the senate appointed by the Subcommittee on Committees of 
395.35 	the Committee on Rules and Administration, including one member of the minority;
396.1 	(2) three members of the house of representatives, two from the majority party 
396.2 	appointed by the speaker of the house of representatives, and one from the minority party 
396.3 	appointed by the minority leader of the house of representatives;
396.4 	(3) the attorney general or the attorney general's designated representative; 
396.5 	(4) three representatives of health care providers appointed as follows:
396.6 	(i) one member appointed by the governor;
396.7 	(ii) one member appointed by the speaker of the house; and
396.8 	(iii) one member appointed by the Subcommittee on Committees of the senate 
396.9 	Committee on Rules and Administration;
396.10 	(5) one member selected by the American Federation of State, County, and 
396.11 	Municipal employees;
396.12 	(6) one member selected by the Minnesota Association of Professional Employees;
396.13 	(7) one member selected by Education Minnesota;
396.14 	(8) one member selected by the Minnesota Business Partnership; and
396.15 	(9) one member selected by the Metropolitan Interdependent Business Organization.
396.16 	All appointments made under this subdivision must be made within 30 days of the 
396.17 	effective date of this act.
396.18 	(b) The attorney general or the attorney general's designee shall convene the first 
396.19 	meeting of the study group. The study group shall select its chair at the first meeting.
396.20 		Subd. 2.Study; report. The study group shall study and make recommendations 
396.21 	on the following issues related to the creation, maintenance, and funding of a voluntary, 
396.22 	statewide health plan purchasing pool to provide comprehensive, cost-effective, and 
396.23 	medically appropriate health coverage to all public and private employees in Minnesota 
396.24 	and all Minnesota residents:
396.25 	(1) the creation of an independent public entity to administer the pool; 
396.26 	(2) eligibility and participation requirements for existing public and private health 
396.27 	care purchasing pools, public and private employers, and residents of this state; 
396.28 	(3) how to contract directly with providers to provide comprehensive coverage for 
396.29 	preventive, mental health, dental and other medical services, and comprehensive drug 
396.30 	benefits to enrollees and maximize the cost savings and other efficiencies that a large 
396.31 	purchasing pool  would be expected to generate without the need for a public subsidy; 
396.32 	(4) provisions that allow the pool to contract directly with health care providers 
396.33 	to provide coverage to enrollees;
396.34 	(5) incentives designed to attract and retain the maximum number of enrollees; 
397.1 	(6) recommendations for the administration of the pool and the plans that will be 
397.2 	available to enrollees including, but not limited to, recommendations to keep the pool 
397.3 	solvent and profitable so that public subsidies are not necessary; and 
397.4 	(7) other elements the study group concludes are necessary or desirable for the 
397.5 	pool to possess. 
397.6 	The study group shall submit its report and the draft legislation necessary to 
397.7 	implement its recommendations to the chairs of the legislative committees and divisions 
397.8 	with jurisdiction over health care policy and finance, the Health Care Access Commission, 
397.9 	and the governor by February 1, 2008. 
397.10 		Subd. 3.Staffing. State agencies shall assist the study group with any requests for 
397.11 	information the study group considers necessary to complete the study and report under 
397.12 	subdivision 2.
397.13 		Subd. 4.Removal; vacancies; expenses. Removal of members, vacancies, and 
397.14 	expenses for members shall be as provided in Minnesota Statutes, section 15.059.
397.15 		Subd. 5.Expiration. This section expires after the submission of the report as 
397.16 	required in subdivision 2.

397.17 	Sec. 16.  REPEALER.
 397.18 	Minnesota Statutes 2006, section 62A.301, is repealed, effective January 1, 2008.

397.19 	ARTICLE 13
397.20 	CHILDREN'S HEALTH PROGRAMS; MINNESOTACARE

397.21 	Section 1. Minnesota Statutes 2006, section 256B.057, is amended by adding a 
397.22 	subdivision to read:
397.23 		Subd. 2c.Extended coverage for children. A child receiving medical assistance 
397.24 	under subdivision 2, who becomes ineligible due to excess income, is eligible for two 
397.25 	additional months of medical assistance. Eligibility under this section is effective 
397.26 	following any coverage available under section 256B.0625.
397.27 	A child eligible for extended coverage under this section is deemed automatically 
397.28 	eligible for MinnesotaCare until renewal. MinnesotaCare coverage begins in accordance 
397.29 	with section 256L.05, subdivision 3.

397.30 	EFFECTIVE DATE. This section is effective October 1, 2008, or upon federal 
397.31 	approval, whichever is later.

397.32 	Sec. 2. Minnesota Statutes 2006, section 256L.04, subdivision 1, is amended to read:
398.1 		Subdivision 1.Families with children. (a) Families with children with family 
398.2 	income equal to or less than 275 percent of the federal poverty guidelines for the 
398.3 	applicable family size shall be eligible for MinnesotaCare according to this section. All 
398.4 	other provisions of sections 256L.01 to 256L.18, including the insurance-related barriers 
398.5 	to enrollment under section 256L.07, shall apply unless otherwise specified. 
398.6 	(b) Parents who enroll in the MinnesotaCare program must also enroll their children, 
398.7 	if the children are eligible. Children may be enrolled separately without enrollment by 
398.8 	parents. However, if one parent in the household enrolls, both parents must enroll, unless 
398.9 	other insurance is available. If one child from a family is enrolled, all children must 
398.10 	be enrolled, unless other insurance is available. If one spouse in a household enrolls, 
398.11 	the other spouse in the household must also enroll, unless other insurance is available. 
398.12 	Families cannot choose to enroll only certain uninsured members.
398.13 	(c) Beginning October 1, 2003, the dependent sibling definition no longer applies 
398.14 	to the MinnesotaCare program. These persons are no longer counted in the parental 
398.15 	household and may apply as a separate household.
398.16 	(d) Beginning July 1, 2003, or upon federal approval, whichever is later, parents are 
398.17 	not eligible for MinnesotaCare if their gross income exceeds $50,000.
398.18 	(e) Children formerly enrolled in medical assistance and automatically deemed 
398.19 	eligible for MinnesotaCare according to section 256B.057, subdivision 2c, are exempt 
398.20 	from the requirements of this section until renewal.

398.21 	EFFECTIVE DATE. This section is effective October 1, 2008, or upon federal 
398.22 	approval, whichever is later.

398.23 	Sec. 3. Minnesota Statutes 2006, section 256L.07, is amended by adding a subdivision 
398.24 	to read:
398.25 		Subd. 7.Exception for certain children. Children formerly enrolled in medical 
398.26 	assistance and automatically deemed eligible for MinnesotaCare according to section 
398.27 	256B.057, subdivision 2c, are exempt from the requirements of this section until renewal.

398.28 	EFFECTIVE DATE. This section is effective October 1, 2008, or upon federal 
398.29 	approval, whichever is later.

398.30 	Sec. 4. [256L.22] DEFINITION; CHILDREN'S HEALTH PROGRAM.
398.31 	For purposes of sections 256L.22 to 256L.28, "children's health program" means 
398.32 	the medical assistance and MinnesotaCare programs to the extent medical assistance and 
398.33 	MinnesotaCare provide health coverage to children.

399.1 	EFFECTIVE DATE. This section is effective October 1, 2008, or upon federal 
399.2 	approval, whichever is later.

399.3 	Sec. 5. [256L.24] HEALTH CARE ELIGIBILITY FOR CHILDREN.
399.4 		Subdivision 1.Applicability. This section applies to children who are enrolled in a 
399.5 	children's health program.
399.6 		Subd. 2.Application procedure. The commissioner shall develop an application 
399.7 	form for children's health programs for children that is easily understandable and does not 
399.8 	exceed four pages in length. The provisions of section 256L.05, subdivision 1, apply.
399.9 		Subd. 3.Premiums. Children enrolled in MinnesotaCare shall pay premiums 
399.10 	as provided in section 256L.15.
399.11 		Subd. 4.Eligibility renewal. The commissioner shall require children enrolled in 
399.12 	MinnesotaCare to renew eligibility every 12 months.

399.13 	EFFECTIVE DATE. This section is effective October 1, 2008, or upon federal 
399.14 	approval, whichever is later.

399.15 	Sec. 6. [256L.26] ASSISTANCE TO APPLICANTS.
399.16 	The commissioner shall assist children in choosing a managed care organization 
399.17 	to receive services under a children's health program, by:
399.18 	(1) establishing a Web site to provide information about managed care organizations 
399.19 	and to allow online enrollment;
399.20 	(2) making applications and information on managed care organizations available 
399.21 	to applicants and enrollees according to Title VI of the Civil Rights Act and federal 
399.22 	regulations adopted under that law or any guidance from the United States Department of 
399.23 	Health and Human Services; and
399.24 	(3) making benefit educators available to assist applicants in choosing a managed 
399.25 	care organization.

399.26 	EFFECTIVE DATE. This section is effective October 1, 2008, or upon federal 
399.27 	approval, whichever is later.

399.28 	Sec. 7. [256L.28] FEDERAL APPROVAL.
399.29 	The commissioner shall seek all federal waivers and approvals necessary to 
399.30 	implement sections 256L.22 to 256L.28, including, but not limited to, waivers and 
399.31 	approvals necessary to:
399.32 	(1) coordinate medical assistance and MinnesotaCare coverage for children; and
400.1 	(2) maximize receipt of the federal medical assistance match for covered children, 
400.2 	by increasing income standards through the use of more liberal income methodologies as 
400.3 	provided under United States Code, title 42, sections 1396a and 1396u-1.

400.4 	EFFECTIVE DATE. This section is effective October 1, 2008, or upon federal 
400.5 	approval, whichever is later.

400.6 	ARTICLE 14
400.7 	HEALTH CARE REFORM POLICY

400.8 	Section 1. Minnesota Statutes 2006, section 62J.82, is amended to read:
400.9 	62J.82 HOSPITAL CHARGEINFORMATION REPORTING DISCLOSURE.
400.10 		Subdivision 1.Required information. The Minnesota Hospital Association shall 
400.11 	develop a Web-based system, available to the public free of charge, for reporting charge 
400.12 	information the following, for Minnesota residents,:
400.13 	(1) hospital-specific performance on the measures of care developed under section 
400.14 	256B.072 for acute myocardial infarction, heart failure, and pneumonia; 
400.15 	(2) by January 1, 2009, hospital-specific performance on the public reporting 
400.16 	measures for hospital-acquired infections as published by the National Quality Forum 
400.17 	and collected by the Minnesota Hospital Association and Stratis Health in collaboration 
400.18 	with infection control practitioners; and 
400.19 	(3) charge information, including, but not limited to, number of discharges, average 
400.20 	length of stay, average charge, average charge per day, and median charge, for each of the 
400.21 	50 most common inpatient diagnosis-related groups and the 25 most common outpatient 
400.22 	surgical procedures as specified by the Minnesota Hospital Association. 
400.23 		Subd. 2.Web site. The Web site must provide information that compares 
400.24 	hospital-specific data to hospital statewide data. The Web site must be established by 
400.25 	October 1, 2006, and must be updated annually. The commissioner shall provide a link to 
400.26 	this reporting information on the department's Web site.
400.27 		Subd. 3.Enforcement. The commissioner shall provide a link to this information 
400.28 	on the department's Web site. If a hospital does not provide this information to the 
400.29 	Minnesota Hospital Association, the commissioner of health may require the hospital to 
400.30 	do so in accordance with section 144.55, subdivision 6. The commissioner shall provide a 
400.31 	link to this information on the department's Web site.

401.1 	ARTICLE 15
401.2 	HEALTH CARE REFORM

401.3 	Section 1. [62J.431] EVIDENCE-BASED HEALTH CARE GUIDELINES.
401.4 	Evidence-based guidelines must meet the following criteria:
401.5 	(1) the scope and application are clear;
401.6 	(2) authorship is stated and any conflicts of interest disclosed;
401.7 	(3) authors represent all pertinent clinical fields or other means of input have been 
401.8 	used;
401.9 	(4) the development process is explicitly stated;
401.10 	(5) the guideline is grounded in evidence;
401.11 	(6) the evidence is cited and grated;
401.12 	(7) the document itself is clear and practical;
401.13 	(8) the document is flexible in use, with exceptions noted or provided for with 
401.14 	general statements;
401.15 	(9) measures are included for use in systems improvement; and
401.16 	(10) the guideline has scheduled reviews and updating.

401.17 	Sec. 2. Minnesota Statutes 2006, section 62J.495, is amended to read:
401.18 	62J.495 HEALTH INFORMATION TECHNOLOGY AND 
401.19 	INFRASTRUCTURE ADVISORY COMMITTEE.
401.20 		Subdivision 1.Establishment; members; duties Implementation. By January 
401.21 	1, 2015, all hospitals and health care providers must have in place an interoperable 
401.22 	electronic health records system within their hospital system or clinical practice setting. 
401.23 	The commissioner of health, in consultation with the Health Information Technology and 
401.24 	Infrastructure Advisory Committee, shall develop a statewide plan to meet this goal, 
401.25 	including uniform standards to be used for the interoperable system for sharing and 
401.26 	synchronizing patient data across systems. The standards must be compatible with federal 
401.27 	efforts. The uniform standards must be developed by January 1, 2009, with a status report 
401.28 	on the development of these standards submitted to the legislature by January 15, 2008.
401.29 		Subd. 2.Health Information Technology and Infrastructure Advisory 
401.30 	Committee. (a) The commissioner shall establish a Health Information Technology 
401.31 	and Infrastructure Advisory Committee governed by section 15.059 to advise the 
401.32 	commissioner on the following matters:
401.33 	(1) assessment of the use of health information technology by the state, licensed 
401.34 	health care providers and facilities, and local public health agencies;
402.1 	(2) recommendations for implementing a statewide interoperable health information 
402.2 	infrastructure, to include estimates of necessary resources, and for determining standards 
402.3 	for administrative data exchange, clinical support programs, patient privacy requirements, 
402.4 	and maintenance of the security and confidentiality of individual patient data; and
402.5 	(3) recommendations for encouraging use of innovative health care applications 
402.6 	using information technology and systems to improve patient care and reduce the cost 
402.7 	of care, including applications relating to disease management and personal health 
402.8 	management that enable remote monitoring of patients' conditions, especially those with 
402.9 	chronic conditions; and 
402.10 	(4) other related issues as requested by the commissioner.
402.11 	(b) The members of the Health Information Technology and Infrastructure Advisory 
402.12 	Committee shall include the commissioners, or commissioners' designees, of health, 
402.13 	human services, administration, and commerce and additional members to be appointed 
402.14 	by the commissioner to include persons representing Minnesota's local public health 
402.15 	agencies, licensed hospitals and other licensed facilities and providers, private purchasers, 
402.16 	the medical and nursing professions, health insurers and health plans, the state quality 
402.17 	improvement organization, academic and research institutions, consumer advisory 
402.18 	organizations with an interest and expertise in health information technology, and other 
402.19 	stakeholders as identified by the Health Information Technology and Infrastructure 
402.20 	Advisory Committee.
402.21 		Subd. 2.Annual report. (c) The commissioner shall prepare and issue an annual 
402.22 	report not later than January 30 of each year outlining progress to date in implementing a 
402.23 	statewide health information infrastructure and recommending future projects.
402.24 		Subd. 3.Expiration. (d) Notwithstanding section 15.059, this sectionsubdivision 
402.25 	expires June 30, 2009 2015.

402.26 	Sec. 3. [62J.496] ELECTRONIC HEALTH RECORD SYSTEM REVOLVING 
402.27 	ACCOUNT AND LOAN PROGRAM.
402.28 		Subdivision 1.Account establishment. An account is established to provide loans 
402.29 	to eligible borrowers to assist in financing the installation or support of an interoperable 
402.30 	health record system. The system must provide for the interoperable exchange of health 
402.31 	care information between the applicant and, at a minimum, a hospital system, pharmacy, 
402.32 	and a health care clinic or other physician group.
402.33 		Subd. 2.Eligibility. (a) "Eligible borrower" means one of the following:
402.34 	(1) community clinics, as defined under section 145.9268;
403.1 	(2) hospitals eligible for rural hospital capital improvement grants, as defined 
403.2 	in section 144.148;
403.3 	(3) physician clinics located in a community with a population of less than 50,000 
403.4 	according to United States Census Bureau statistics and outside the seven-county 
403.5 	metropolitan area;
403.6 	(4) nursing facilities licensed under sections 144A.01 to 144A.27; and
403.7 	(5) other providers of health or health care services approved by the commissioner 
403.8 	for which interoperable electronic health record capability would improve quality of 
403.9 	care, patient safety, or community health.
403.10 	(b) To be eligible for a loan under this section, the applicant must submit a loan 
403.11 	application to the commissioner of health on forms prescribed by the commissioner. The 
403.12 	application must include, at a minimum:
403.13 	(1) the amount of the loan requested and a description of the purpose or project 
403.14 	for which the loan proceeds will be used;
403.15 	(2) a quote from a vendor;
403.16 	(3) a description of the health care entities and other groups participating in the 
403.17 	project;
403.18 	(4) evidence of financial stability and a demonstrated ability to repay the loan; and
403.19 	(5) a description of how the system to be financed interconnects or plans in the 
403.20 	future to interconnect with other health care entities and provider groups located in the 
403.21 	same geographical area.
403.22 		Subd. 3.Loans. (a) The commissioner of health may make a no interest loan 
403.23 	to a provider or provider group who is eligible under subdivision 2 on a first-come, 
403.24 	first-served basis provided that the applicant is able to comply with this section. The total 
403.25 	accumulative loan principal must not exceed $1,500,000 per loan. The commissioner of 
403.26 	health has discretion over the size and number of loans made.
403.27 	(b) The commissioner of health may prescribe forms and establish an application 
403.28 	process and, notwithstanding section 16A.1283, may impose a reasonable nonrefundable 
403.29 	application fee to cover the cost of administering the loan program. Any application 
403.30 	fees imposed and collected under the electronic health records system revolving account 
403.31 	and loan program in this section are appropriated to the commissioner of health for the 
403.32 	duration of the loan program.
403.33 	(c) The borrower must begin repaying the principal no later than two years from the 
403.34 	date of the loan. Loans must be amortized no later than six years from the date of the loan.
403.35 	(d) Repayments must be credited to the account.
404.1 		Subd. 4.Data classification. Data collected by the commissioner of health on the 
404.2 	application to determine eligibility under subdivision 2 and to monitor borrowers' default 
404.3 	risk or collect payments owed under subdivision 3 are (1) private data on individuals as 
404.4 	defined in section 13.02, subdivision 12; and (2) nonpublic data as defined in section 
404.5 	13.02, subdivision 9. The names of borrowers and the amounts of the loans granted are 
404.6 	public data.

404.7 	Sec. 4. [62J.536] UNIFORM ELECTRONIC TRANSACTIONS AND 
404.8 	IMPLEMENTATION GUIDE STANDARDS.
404.9 		Subdivision 1.Electronic claims and eligibility transactions required. (a) 
404.10 	Beginning January 15, 2009, all group purchasers must accept from health care providers 
404.11 	the eligibility for a health plan transaction described under Code of Federal Regulations, 
404.12 	title 45, part 162, subpart L. Beginning July 15, 2009, all group purchasers must accept 
404.13 	from health care providers the health care claims or equivalent encounter information 
404.14 	transaction described under Code of Federal Regulations, title 45, part 162, subpart K.
404.15 	(b) Beginning January 15, 2009, all group purchasers must transmit to providers the 
404.16 	eligibility for a health plan transaction described under Code of Federal Regulations, title 
404.17 	45, part 162, subpart L. Beginning December 1, 2009, all group purchasers must transmit 
404.18 	to providers the health care payment and remittance advice transaction described under 
404.19 	Code of Federal Regulations, title 45, part 162, subpart P.
404.20 	(c) Beginning January 15, 2009, all health care providers must submit to group 
404.21 	purchasers the eligibility for a health plan transaction described under Code of Federal 
404.22 	Regulations, title 45, part 162, subpart L. Beginning July 15, 2009, all health care 
404.23 	providers must submit to group purchasers the health care claims or equivalent encounter 
404.24 	information transaction described under Code of Federal Regulations, title 45, part 162, 
404.25 	subpart K.
404.26 	(d) Beginning January 15, 2009, all health care providers must accept from group 
404.27 	purchasers the eligibility for a health plan transaction described under Code of Federal 
404.28 	Regulations, title 45, part 162, subpart L. Beginning December 15, 2009, all health care 
404.29 	providers must accept from group purchasers the health care payment and remittance 
404.30 	advice transaction described under Code of Federal Regulations, title 45, part 162, subpart 
404.31 	P.
404.32 	(e) Each of the transactions described in paragraphs (a) to (d) shall require the use 
404.33 	of a single, uniform companion guide to the implementation guides described under 
404.34 	Code of Federal Regulations, title 45, part 162. The companion guides will be developed 
404.35 	pursuant to subdivision 2.
405.1 	(f) Notwithstanding any other provisions in sections 62J.50 to 62J.61, all group 
405.2 	purchasers and health care providers must exchange claims and eligibility information 
405.3 	electronically using the transactions, companion guides, implementation guides, and 
405.4 	timelines required under this subdivision. Group purchasers may not impose any fee on 
405.5 	providers for the use of the transactions prescribed in this subdivision.
405.6 	(g) Nothing in this subdivision shall prohibit group purchasers and health care 
405.7 	providers from using a direct data entry, Web-based methodology for complying with 
405.8 	the requirements of this subdivision. Any direct data entry method for conducting 
405.9 	the transactions specified in this subdivision must be consistent with the data content 
405.10 	component of the single, uniform companion guides required in paragraph (e) and the 
405.11 	implementation guides described under Code of Federal Regulations, title 45, part 162.
405.12 		Subd. 2.Establishing uniform, standard companion guides. (a) At least 12 
405.13 	months prior to the timelines required in subdivision 1, the commissioner of health shall 
405.14 	promulgate rules pursuant to section 62J.61 establishing and requiring group purchasers 
405.15 	and health care providers to use the transactions and the uniform, standard companion 
405.16 	guides required under subdivision 1, paragraph (e).
405.17 	(b) The commissioner of health must consult with the Minnesota Administrative 
405.18 	Uniformity Committee on the development of the single, uniform companion guides 
405.19 	required under subdivision 1, paragraph (e), for each of the transactions in subdivision 1. 
405.20 	The single uniform companion guides required under subdivision 1, paragraph (e), must 
405.21 	specify uniform billing and coding standards. The commissioner of health shall base the 
405.22 	companion guides required under subdivision 1, paragraph (e), billing and coding rules, 
405.23 	and standards on the Medicare program, with modifications that the commissioner deems 
405.24 	appropriate after consulting the Minnesota Administrative Uniformity Committee.
405.25 	(c) No group purchaser or health care provider may add to or modify the single, 
405.26 	uniform companion guides defined in subdivision 1, paragraph (e), through additional 
405.27 	companion guides or other requirements.
405.28 	(d) In promulgating the rules in paragraph (a), the commissioner shall not require 
405.29 	data content that is not essential to accomplish the purpose of the transactions in 
405.30 	subdivision 1.
405.31 		Subd. 3.Definition. Notwithstanding section 62J.03, subdivision 8, for purposes of 
405.32 	this section, "health care provider" includes licensed nursing homes, licensed boarding 
405.33 	care homes, and licensed home care providers.

405.34 	Sec. 5. Minnesota Statutes 2006, section 62J.692, subdivision 1, is amended to read:
406.1 		Subdivision 1.Definitions. For purposes of this section, the following definitions 
406.2 	apply:
406.3 	(a) "Accredited clinical training" means the clinical training provided by a 
406.4 	medical education program that is accredited through an organization recognized by the 
406.5 	Department of Education, the Centers for Medicare and Medicaid Services, or another 
406.6 	national body who reviews the accrediting organizations for multiple disciplines and 
406.7 	whose standards for recognizing accrediting organizations are reviewed and approved by 
406.8 	the commissioner of health in consultation with the Medical Education and Research 
406.9 	Advisory Committee.
406.10 	(b) "Commissioner" means the commissioner of health.
406.11 	(c) "Clinical medical education program" means the accredited clinical training of 
406.12 	physicians (medical students and residents), doctor of pharmacy practitioners, doctors 
406.13 	of chiropractic, dentists, advanced practice nurses (clinical nurse specialists, certified 
406.14 	registered nurse anesthetists, nurse practitioners, and certified nurse midwives), and 
406.15 	physician assistants.
406.16 	(d) "Sponsoring institution" means a hospital, school, or consortium located in 
406.17 	Minnesota that sponsors and maintains primary organizational and financial responsibility 
406.18 	for a clinical medical education program in Minnesota and which is accountable to the 
406.19 	accrediting body.
406.20 	(e) "Teaching institution" means a hospital, medical center, clinic, or other 
406.21 	organization that conducts a clinical medical education program in Minnesota.
406.22 	(f) "Trainee" means a student or resident involved in a clinical medical education 
406.23 	program.
406.24 	(g) "Eligible trainee FTEs FTE's" means the number of trainees, as measured by 
406.25 	full-time equivalent counts, that are at training sites located in Minnesota with acurrently 
406.26 	active medical assistance provider numberenrollment status and a National Provider 
406.27 	Identification (NPI) number where training occurs in either an inpatient or ambulatory 
406.28 	patient care setting and where the training is funded, in part, by patient care revenues.
406.29 	Training that occurs in nursing facility settings is not eligible for funding under this section.

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

406.31 	Sec. 6. Minnesota Statutes 2006, section 62J.692, subdivision 4, is amended to read:
406.32 		Subd. 4.Distribution of funds. (a) Following the distribution described under 
406.33 	paragraph (b), the commissioner shall annually distribute 90 percent ofthe available 
406.34 	medical education funds to all qualifying applicants based on a distribution formula that 
406.35 	reflects a summation of two factors:
407.1 	(1) an education factor, which is determined by the total number of eligible trainee 
407.2 	FTEs and the total statewide average costs per trainee, by type of trainee, in each clinical 
407.3 	medical education program; and
407.4 	(2) a public program volume factor, which is determined by the total volume of 
407.5 	public program revenue received by each training site as a percentage of all public 
407.6 	program revenue received by all training sites in the fund pool; and
407.7 	(2) a supplemental public program volume factor, which is determined by providing 
407.8 	a supplemental payment of 20 percent of each training site's grant to training sites whose 
407.9 	public program revenue accounted for at least 0.98 percent of the total public program 
407.10 	revenue received by all eligible training sites. Grants to training sites whose public 
407.11 	program revenue accounted for less than 0.98 percent of the total public program revenue 
407.12 	received by all eligible training sites shall be reduced by an amount equal to the total 
407.13 	value of the supplemental payment.
407.14 	In this formula, the education factor is weighted at 67 percent and the public program 
407.15 	volume factor is weighted at 33 percent.
407.16 	Public program revenue for the distribution formula includes revenue from medical 
407.17 	assistance, prepaid medical assistance, general assistance medical care, and prepaid 
407.18 	general assistance medical care. Training sites that receive no public program revenue 
407.19 	are ineligible for funds available under this paragraph subdivision.  For purposes of 
407.20 	determining training-site level grants to be distributed under paragraph (a), total statewide 
407.21 	average costs per trainee for medical residents is based on audited clinical training costs 
407.22 	per trainee in primary care clinical medical education programs for medical residents. 
407.23 	Total statewide average costs per trainee for dental residents is based on audited clinical 
407.24 	training costs per trainee in clinical medical education programs for dental students. Total 
407.25 	statewide average costs per trainee for pharmacy residents is based on audited clinical 
407.26 	training costs per trainee in clinical medical education programs for pharmacy students.
407.27 	(b) The commissioner shall annually distribute ten percent of total available medical 
407.28 	education funds to all qualifying applicants based on the percentage received by each 
407.29 	applicant under paragraph (a). These funds are to be used to offset clinical education 
407.30 	costs at eligible clinical training sites based on criteria developed by the clinical medical 
407.31 	education program. Applicants may choose to distribute funds allocated under this 
407.32 	paragraph based on the distribution formula described in paragraph (a). $5,350,000 of the 
407.33 	available medical education funds shall be distributed as follows:
407.34 	(1) $1,475,000 to the University of Minnesota Medical Center-Fairview;
407.35 	(2) $2,075,000 to the University of Minnesota School of Dentistry; and
407.36 	(3) $1,800,000 to the Academic Health Center.
408.1 	(c) Funds distributed shall not be used to displace current funding appropriations 
408.2 	from federal or state sources.
408.3 	(d) Funds shall be distributed to the sponsoring institutions indicating the amount 
408.4 	to be distributed to each of the sponsor's clinical medical education programs based on 
408.5 	the criteria in this subdivision and in accordance with the commissioner's approval letter. 
408.6 	Each clinical medical education program must distribute funds allocated under paragraph 
408.7 	(a) to the training sites as specified in the commissioner's approval letter. Sponsoring 
408.8 	institutions, which are accredited through an organization recognized by the Department 
408.9 	of Education or the Centers for Medicare and Medicaid Services, may contract directly 
408.10 	with training sites to provide clinical training. To ensure the quality of clinical training, 
408.11 	those accredited sponsoring institutions must:
408.12 	(1) develop contracts specifying the terms, expectations, and outcomes of the clinical 
408.13 	training conducted at sites; and
408.14 	(2) take necessary action if the contract requirements are not met. Action may 
408.15 	include the withholding of payments under this section or the removal of students from 
408.16 	the site.
408.17 	(e) Any funds not distributed in accordance with the commissioner's approval letter 
408.18 	must be returned to the medical education and research fund within 30 days of receiving 
408.19 	notice from the commissioner. The commissioner shall distribute returned funds to the 
408.20 	appropriate training sites in accordance with the commissioner's approval letter.
408.21 	(f) The commissioner shall distribute by June 30 of each year an amount equal to 
408.22 	the funds transferred under subdivision 10, plus five percent interest to the University of 
408.23 	Minnesota Board of Regents for the instructional costs of health professional programs 
408.24 	at the Academic Health Center and for interdisciplinary academic initiatives within the 
408.25 	Academic Health Center.
408.26 	(g) A maximum of $150,000 of the funds dedicated to the commissioner under 
408.27 	section 297F.10, subdivision 1, paragraph (b), clause (2), may be used by the commissioner 
408.28 	for administrative expenses associated with implementing this section.

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

408.30 	Sec. 7. Minnesota Statutes 2006, section 62J.692, subdivision 5, is amended to read:
408.31 		Subd. 5.Report. (a) Sponsoring institutions receiving funds under this section 
408.32 	must sign and submit a medical education grant verification report (GVR) to verify that 
408.33 	the correct grant amount was forwarded to each eligible training site. If the sponsoring 
408.34 	institution fails to submit the GVR by the stated deadline, or to request and meet 
408.35 	the deadline for an extension, the sponsoring institution is required to return the full 
409.1 	amount of funds received to the commissioner within 30 days of receiving notice from 
409.2 	the commissioner. The commissioner shall distribute returned funds to the appropriate 
409.3 	training sites in accordance with the commissioner's approval letter.
409.4 	(b) The reports must provide verification of the distribution of the funds and must 
409.5 	include:
409.6 	(1) the total number of eligible trainee FTEs in each clinical medical education 
409.7 	program;
409.8 	(2) the name of each funded program and, for each program, the dollar amount 
409.9 	distributed to each training site;
409.10 	(3) documentation of any discrepancies between the initial grant distribution notice 
409.11 	included in the commissioner's approval letter and the actual distribution;
409.12 	(4) a statement by the sponsoring institution describing the distribution of funds 
409.13 	allocated under subdivision 4, paragraph (b), including information on which clinical 
409.14 	training sites received funding and the rationale used for determining funding priorities;
409.15 	(5) a statement by the sponsoring institution stating that the completed grant 
409.16 	verification report is valid and accurate; and
409.17 	(6)(5) other information the commissioner, with advice from the advisory 
409.18 	committee, deems appropriate to evaluate the effectiveness of the use of funds for medical 
409.19 	education.
409.20 	(c) By February 15 of each year, the commissioner, with advice from the 
409.21 	advisory committee, shall provide an annual summary report to the legislature on the 
409.22 	implementation of this section.

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

409.24 	Sec. 8. Minnesota Statutes 2006, section 62J.692, subdivision 8, is amended to read:
409.25 		Subd. 8.Federal financial participation. (a) The commissioner of human 
409.26 	services shall seek to maximize federal financial participation in payments for medical 
409.27 	education and research costs. If the commissioner of human services determines that 
409.28 	federal financial participation is available for the medical education and research, the 
409.29 	commissioner of health shall transfer to the commissioner of human services the amount 
409.30 	of state funds necessary to maximize the federal funds available. The amount transferred 
409.31 	to the commissioner of human services, plus the amount of federal financial participation, 
409.32 	shall be distributed to medical assistance providers in accordance with the distribution 
409.33 	methodology described in subdivision 4.
410.1 	(b) For the purposes of paragraph (a), The commissioner shall use physician clinic 
410.2 	rates where possible to maximize federal financial participation. Any additional funds that 
410.3 	become available must be distributed under subdivision 4, paragraph (a).

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

410.5 	Sec. 9. Minnesota Statutes 2006, section 62J.81, subdivision 1, is amended to read:
410.6 		Subdivision 1.Required disclosure of estimated payment. (a) A health care 
410.7 	provider, as defined in section 62J.03, subdivision 8, or the provider's designee as agreed 
410.8 	to by that designee, shall, at the request of a consumer, and at no cost to the consumer 
410.9 	or the consumer's employer, provide that consumer with a good faith estimate of the 
410.10 	reimbursementallowable payment the provider expects to receive from the health plan 
410.11 	company in which the consumer is enrolled has agreed to accept from the consumer's 
410.12 	health plan company for the services specified by the consumer, specifying the amount of 
410.13 	the allowable payment due from the health plan company. Health plan companies must 
410.14 	allow contracted providers, or their designee, to release this information. A good faith 
410.15 	estimate must also be made available at the request of a consumer who is not enrolled in 
410.16 	a health plan company.If a consumer has no applicable public or private coverage, the 
410.17 	health care provider must give the consumer, and at no cost to the consumer, a good faith 
410.18 	estimate of the average allowable reimbursement the provider accepts as payment from 
410.19 	private third-party payers for the services specified by the consumer and the estimated 
410.20 	amount the noncovered consumer will be required to pay. Payment information provided 
410.21 	by a provider, or by the provider's designee as agreed to by that designee, to a patient 
410.22 	pursuant to this subdivision does not constitute a legally binding estimate of the allowable 
410.23 	charge for or cost to the consumer of services. 
410.24 	(b) A health plan company, as defined in section 62J.03, subdivision 10, shall, at 
410.25 	the request of an enrollee or the enrollee's designee, provide that enrollee with a good 
410.26 	faith estimate of the reimbursementallowable amount the health plan company would 
410.27 	expect to pay tohas contracted for with a specified provider within the network as total 
410.28 	payment for a health care service specified by the enrollee and the portion of the allowable 
410.29 	amount due from the enrollee and the enrollee's out-of-pocket costs. If requested by the 
410.30 	enrollee, the health plan company shall also provide to the enrollee a good faith estimate 
410.31 	of the enrollee's out-of-pocket cost for the health care service. An estimate provided to 
410.32 	an enrollee under this paragraph is not a legally binding estimate of the reimbursement
410.33 	allowable amount or enrollee's out-of-pocket cost.

410.34 	EFFECTIVE DATE. This section is effective August 1, 2007.

411.1 	Sec. 10. [62Q.101] EVALUATION OF PROVIDER PERFORMANCE.
411.2 	A health plan company, or a vendor of risk management services as defined under 
411.3 	section 60A.23, subdivision 8, shall, in evaluating the performance of a health care 
411.4 	provider:
411.5 	(1) conduct the evaluation using a bona fide baseline based upon practice experience 
411.6 	of the provider group; and
411.7 	(2) disclose the baseline to the health care provider in writing and prior to the 
411.8 	beginning of the time period used for the evaluation.

411.9 	Sec. 11. Minnesota Statutes 2006, section 62Q.165, subdivision 1, is amended to read:
411.10 		Subdivision 1.Definition. It is the commitment of the state to achieve universal 
411.11 	health coverage for all Minnesotans by the year 2011. Universal coverage is achieved 
411.12 	when:
411.13 	(1) every Minnesotan has access to a full range of quality health care services;
411.14 	(2) every Minnesotan is able to obtain affordable health coverage which pays for the 
411.15 	full range of services, including preventive and primary care; and
411.16 	(3) every Minnesotan pays into the health care system according to that person's 
411.17 	ability.

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

411.19 	Sec. 12. Minnesota Statutes 2006, section 62Q.165, subdivision 2, is amended to read:
411.20 		Subd. 2.Goal. It is the goal of the state to make continuous progress toward 
411.21 	reducing the number of Minnesotans who do not have health coverage so that by January 
411.22 	1, 2000, fewer than four percent of the state's population will be without health coverage
411.23 	2011, all Minnesota residents have access to affordable health care. The goal will be 
411.24 	achieved by improving access to private health coverage through insurance reforms and 
411.25 	market reforms, by making health coverage more affordable for low-income Minnesotans 
411.26 	through purchasing pools and state subsidies, and by reducing the cost of health coverage 
411.27 	through cost containment programs and methods of ensuring that all Minnesotans are 
411.28 	paying into the system according to their ability.

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

411.30 	Sec. 13. Minnesota Statutes 2006, section 144.698, subdivision 1, is amended to read:
411.31 		Subdivision 1.Yearly reports. Each hospital and each outpatient surgical center, 
411.32 	which has not filed the financial information required by this section with a voluntary, 
412.1 	nonprofit reporting organization pursuant to section 144.702, shall file annually with the 
412.2 	commissioner of health after the close of the fiscal year: 
412.3 	(1) a balance sheet detailing the assets, liabilities, and net worth of the hospital or 
412.4 	outpatient surgical center;
412.5 	(2) a detailed statement of income and expenses;
412.6 	(3) a copy of its most recent cost report, if any, filed pursuant to requirements of 
412.7 	Title XVIII of the United States Social Security Act;
412.8 	(4) a copy of all changes to articles of incorporation or bylaws;
412.9 	(5) information on services provided to benefit the community, including services 
412.10 	provided at no cost or for a reduced fee to patients unable to pay, teaching and research 
412.11 	activities, or other community or charitable activities;
412.12 	(6) information required on the revenue and expense report form set in effect on 
412.13 	July 1, 1989, or as amended by the commissioner in rule;
412.14 	(7) information on changes in ownership or control; and
412.15 	(8) other information required by the commissioner in rule.;
412.16 	(9) information on the number of available hospital beds that are dedicated to certain 
412.17 	specialized services, as designated by the commissioner, and annual occupancy rates for 
412.18 	those beds, separately for adult and pediatric care;
412.19 	(10) from outpatient surgical centers, the total number of surgeries; and
412.20 	(11) a report on health care capital expenditures during the previous year, as required 
412.21 	by section 62J.17.

412.22 	Sec. 14. [145.985] HEALTH PROMOTION AND WELLNESS.
412.23 	Community health boards as defined in section 145A.02, subdivision 5, may work 
412.24 	with schools, health care providers, and others to coordinate health and wellness programs 
412.25 	in their communities. In order to meet the requirements of this section, community 
412.26 	health boards may:
412.27 	(1) provide instruction, technical assistance, and recommendations on how to 
412.28 	evaluate project outcomes;
412.29 	(2) assist with on-site health and wellness programs utilizing volunteers and others 
412.30 	addressing health and wellness topics including smoking, nutrition, obesity, and others; and
412.31 	(3) encourage health and wellness programs consistent with the Centers for Disease 
412.32 	Control and Prevention's Community Guide and goals consistent with the Centers for 
412.33 	Disease Control and Prevention's Healthy People 2010 initiative.

412.34 	Sec. 15. Minnesota Statutes 2006, section 256.01, subdivision 2b, is amended to read:
413.1 		Subd. 2b.Performance payments. (a) The commissioner shall develop and 
413.2 	implement a pay-for-performance system to provide performance payments to eligible
413.3 	medical groups and clinics that demonstrate optimum care in serving individuals 
413.4 	with chronic diseases who are enrolled in health care programs administered by the 
413.5 	commissioner under chapters 256B, 256D, and 256L. The commissioner may receive any 
413.6 	federal matching money that is made available through the medical assistance program 
413.7 	for managed care oversight contracted through vendors, including consumer surveys, 
413.8 	studies, and external quality reviews as required by the federal Balanced Budget Act of 
413.9 	1997, Code of Federal Regulations, title 42, part 438-managed care, subpart E-external 
413.10 	quality review. Any federal money received for managed care oversight is appropriated 
413.11 	to the commissioner for this purpose. The commissioner may expend the federal money 
413.12 	received in either year of the biennium.
413.13 	(b) Effective July 1, 2009, or upon federal approval, whichever is later, the 
413.14 	commissioner shall develop and implement a patient incentive health program to provide 
413.15 	incentives and rewards to patients who are enrolled in health care programs administered 
413.16 	by the commissioner under chapters 256B, 256D, and 256L, and who have agreed to and 
413.17 	have met personal health goals established with the patients' primary care providers to 
413.18 	manage a chronic disease or condition, including but not limited to diabetes, high blood 
413.19 	pressure, and coronary artery disease.

413.20 	Sec. 16. Minnesota Statutes 2006, section 256B.0625, is amended by adding a 
413.21 	subdivision to read:
413.22 		Subd. 49.Provider-directed care coordination services. The commissioner 
413.23 	shall develop and implement a provider-directed care coordination program for medical 
413.24 	assistance recipients who are not enrolled in the prepaid medical assistance program and 
413.25 	who are receiving services on a fee-for-service basis. This program provides payment 
413.26 	to primary care clinics for care coordination for people who have complex and chronic 
413.27 	medical conditions. Clinics must meet certain criteria such as the capacity to develop care 
413.28 	plans; have a dedicated care coordinator; and have an adequate number of fee-for-service 
413.29 	clients, evaluation mechanisms, and quality improvement processes to qualify for 
413.30 	reimbursement. For purposes of this subdivision, a primary care clinic is a medical clinic 
413.31 	designated as the patient's first point of contact for medical care, available 24 hours a 
413.32 	day, seven days a week, that provides or arranges for the patient's comprehensive health 
413.33 	care needs, and provides overall integration, coordination and continuity over time and 
413.34 	referrals for specialty care.

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

414.1 	Sec. 17. HEALTH CARE PAYMENT SYSTEM REFORM.
 414.2 		Subdivision 1.Payment reform plan. The commissioners of employee relations, 
414.3 	human services, commerce, and health shall develop a plan for promoting and facilitating 
414.4 	changes in payment rates and methods for paying for health care services, drugs, devices, 
414.5 	supplies, and equipment in order to:
414.6 	(1) reward the provision of cost-effective primary and preventive care;
414.7 	(2) reward the use of evidence-based care;
414.8 	(3) discourage underutilization, overuse, and misuse;
414.9 	(4) reward the use of the most cost-effective settings, drugs, devices, providers, 
414.10 	and treatments; and
414.11 	(5) encourage consumers to maintain good health and use the health care system 
414.12 	appropriately.
414.13 	In developing the plan, the commissioners shall analyze existing data to determine 
414.14 	specific services and health conditions for which changes in payment rates and methods 
414.15 	would lead to significant improvements in quality of care. The commissioners shall 
414.16 	include a definition of the term "quality" for uniform understanding of the plan's impact.
414.17 		Subd. 2.Report. The commissioners shall submit a report to the legislature by 
414.18 	December 15, 2007, describing the payment reform plan. The report must include 
414.19 	proposed legislation for implementing those components of the plan requiring legislative 
414.20 	action or appropriations of money.

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

414.22 	Sec. 18. COMMUNITY INITIATIVES TO COVER UNINSURED AND 
414.23 	UNDERINSURED.
 414.24 		Subdivision 1.Community partnerships. The commissioner of health shall 
414.25 	provide planning grants to up to three community partnerships that satisfy the requirements 
414.26 	in this section. A community partnership is eligible for a grant if the community 
414.27 	partnership includes:
414.28 	(1) at least one county;
414.29 	(2) at least one local hospital;
414.30 	(3) at least one local employer who collectively provides at least 300 jobs in the 
414.31 	community;
414.32 	(4) at least one school system;
414.33 	(5) at least one of the following:
414.34 	(i) one or more integrated health care clinics or physician groups. For purposes of 
414.35 	this section, "integrated health care" means integrated mental health and primary care; or
415.1 	(ii) one or more health care clinics or physician groups and one or more mental 
415.2 	health clinics; and
415.3 	(6) a third-party payer, which may include a county-based purchasing plan, an 
415.4 	employer, or a health plan company.
415.5 		Subd. 2Proposal requirements. The planning grants shall be used by community 
415.6 	partnerships to develop a comprehensive proposal to provide affordable health care 
415.7 	services to uninsured and underinsured individuals with chronic health conditions through 
415.8 	an integrated community partnership system. A community partnership requesting a 
415.9 	planning grant must submit to the commissioner a planning proposal that includes:
415.10 	(1) methods for identifying potential uninsured or underinsured individuals and 
415.11 	patients who have or who are at risk of developing a chronic health condition;
415.12 	(2) methods to integrate and coordinate medical, mental health, and chemical health 
415.13 	services with services provided through county social services, corrections, public health, 
415.14 	school districts, and health care providers;
415.15 	(3) providing early intervention and prevention activities; and
415.16 	(4) methods to identify and support accountability across public and private systems, 
415.17 	including means to measure outcomes and economic savings from providing services 
415.18 	through an integrated system.
415.19 		Subd. 3.Planning grant criteria. (a) Proposals for planning grants shall be 
415.20 	submitted to the commissioner. Preference shall be given to planning proposals that:
415.21 	(1) have broad community support from local business, providers, counties, and 
415.22 	other public and private organizations;
415.23 	(2) propose to provide services to uninsured or underinsured individuals of every 
415.24 	age who have or are at risk of developing multiple, co-occurring chronic conditions;
415.25 	(3) integrate or coordinate resources from multiple sources; and
415.26 	(4) demonstrate how administrative costs for health plan companies and providers 
415.27 	can be reduced through greater simplification, coordination, consolidation, standardization, 
415.28 	reducing billing errors, or other methods.
415.29 	(b) Community partnerships receiving a planning grant under this section shall 
415.30 	submit their proposed initiatives to the commissioner by December 15, 2007.
415.31 	(c) The commissioner shall submit a report to the legislature by February 15, 2008, 
415.32 	that:
415.33 	(1) identifies the community partnerships that received a planning grant under this 
415.34 	section; and
415.35 	(2) summarizes the planned initiatives submitted to the commissioner based on 
415.36 	the requirements in this section.

416.1 	Sec. 19. CARE COORDINATION PILOT PROJECTS.
 416.2 		Subdivision 1.Pilot projects. (a) The commissioner of human services shall 
416.3 	develop and administer up to four pilot projects for children and adults with complex 
416.4 	health care needs who are enrolled in fee-for-service medical assistance, to the extent 
416.5 	permitted by federal requirements. At least two of the grantees must focus on children 
416.6 	with autism or children with complex/multi-diagnoses physical conditions. The purpose 
416.7 	of the projects is to pilot primary care clinic models of care delivery focused on care 
416.8 	coordination and family involvement in order to:
416.9 	(1) incent and support the provision of cost-effective primary and preventive care;
416.10 	(2) reward the use of evidence-based care;
416.11 	(3) reward coordination of care for patients with chronic conditions;
416.12 	(4) discourage overuse and misuse of high cost services;
416.13 	(5) reward the use of the most cost-effective settings, drugs, devices, providers, 
416.14 	and treatments; and
416.15 	(6) encourage consumers to maintain good health and use the health care system 
416.16 	appropriately.
416.17 	(b) The pilot projects must involve the use of designated care professionals or 
416.18 	clinics to serve as a patient's medical home and be responsible for coordinating health 
416.19 	care services across the continuum of care. 
416.20 		Subd. 2.Requirements. In order to be designated a pilot project, health care 
416.21 	professionals or clinics must demonstrate the ability to:
416.22 	(1) be the patient's first point of contact by telephone or other means, 24 hours per 
416.23 	day, seven days a week;
416.24 	(2) provide or arrange for patients' comprehensive health care needs, including the 
416.25 	ability to structure planned chronic disease visits and train and support the caregivers to 
416.26 	effectively monitor and manage the person's health condition;
416.27 	(3) coordinate patients' care when care must be provided outside the medical home;
416.28 	(4) provide longitudinal care, not just episodic care, including meeting long-term 
416.29 	and unique personal needs; and
416.30 	(5) systematically improve quality of care using, among other inputs, patient 
416.31 	feedback.
416.32 		Subd. 3.Evaluation. Pilot projects must be evaluated based on patient satisfaction, 
416.33 	provider satisfaction, clinical process and outcome measures, program costs and savings, 
416.34 	and economic impact on health care providers. Pilot projects must be evaluated based 
416.35 	on the extent to which the medical home:
417.1 	(1) coordinated health care services across the continuum of care and thereby 
417.2 	reduced duplication of services and enhanced communication across providers;
417.3 	(2) provided safe and high-quality care by increasing utilization of effective 
417.4 	treatments, reduced use of ineffective treatments, reduced barriers to essential care and 
417.5 	services, and eliminated barriers to access;
417.6 	(3) reduced unnecessary hospitalizations and emergency room visits and increased 
417.7 	use of cost-effective care and settings;
417.8 	(4) encouraged long-term patient and provider relationships by shifting from 
417.9 	episodic care to consistent, coordinated communication and care with a specified team of 
417.10 	providers or individual providers;
417.11 	(5) engaged and educated consumers by encouraging shared patient and provider 
417.12 	responsibility and accountability for disease prevention, health promotion, chronic 
417.13 	disease management, acute care, and overall well-being, encouraging informed medical 
417.14 	decision-making, ensuring the availability of accurate medical information, and facilitated 
417.15 	the transfer of accurate medical information;
417.16 	(6) fostered the expansion of a technology infrastructure that supports collaboration; 
417.17 	and
417.18 	(7) reduced overall health care costs as compared to conventional payment methods 
417.19 	for similar patient populations.
417.20 		Subd. 4.Rulemaking. The commissioner is exempt from administrative rulemaking 
417.21 	under chapter 14 for purposes of developing, administering, contracting for, and evaluating 
417.22 	pilot projects under this section. The commissioner shall publish a proposed request for 
417.23 	proposals in the State Register and allow 30 days for comment before issuing the final 
417.24 	request for proposals.
417.25 		Subd. 5.Care coordination payments. Grantees under this section are not eligible 
417.26 	for care coordination payments under Minnesota Statutes, section 256B.0625, subdivision 
417.27 	49.

417.28 	Sec. 20. MERC DISTRIBUTION FORMULA.
 417.29 	The commissioner of health shall evaluate the effect of the 2007 revisions to the 
417.30 	medical education and research costs (MERC) distribution formula adopted in this act 
417.31 	on sponsoring institutions and clinical training sites with low numbers of eligible trainee 
417.32 	full-time equivalents. The commissioner shall present to the legislature, by January 15, 
417.33 	2009, any recommendations for changes in the MERC distribution formula necessary to 
417.34 	ensure the financial viability of clinical medical education at these sponsoring institutions 
417.35 	and clinical training sites.

418.1 	Sec. 21. HEALTH CARE TRANSFORMATION TASK FORCE.
 418.2 		Subdivision 1.Task force. (a) The governor shall convene a Health Care 
418.3 	Transformation Task Force to advise and assist the governor regarding activities to 
418.4 	transform the health care system, and to develop a statewide action plan as provided under 
418.5 	subdivision 3. The task force shall consist of:
418.6 	(1) two legislators from the house of representatives appointed by the speaker, and 
418.7 	two legislators from the senate appointed by the Subcommittee on Committees of the 
418.8 	Committee on Rules and Administration;
418.9 	(2) two representatives of the governor and state agencies, appointed by the governor;
418.10 	(3) three persons appointed by the governor who have demonstrated leadership in 
418.11 	health care organizations, health improvement initiatives, health care trade or professional 
418.12 	associations, or other collaborative health system improvement activities;
418.13 	(4) three persons appointed by the governor who have demonstrated leadership in 
418.14 	employer and group purchaser activities related to health system improvement, at least 
418.15 	two of which must be from a labor organization; and
418.16 	(5) five persons appointed by the governor who have demonstrated public or private 
418.17 	sector leadership and innovation.
418.18 	The governor is exempt from the requirements of the open appointments process for 
418.19 	purposes of appointing task force members.
418.20 	(b) The Department of Health shall provide staff support to the task force. The task 
418.21 	force may accept outside resources to help support its efforts.
418.22 		Subd. 2.Public and stakeholder engagement. The commissioner of health shall 
418.23 	review available research to determine Minnesotans' values, preferences, opinions, and 
418.24 	perceptions related to health care and to the issues confronting the task force, and shall 
418.25 	report the findings to the task force.
418.26 		Subd. 3.Duties. (a) By February 1, 2008, the task force shall develop and present to 
418.27 	the legislature and the governor a statewide action plan for transforming the health care 
418.28 	system to improve affordability, quality, access, and the health status of Minnesotans. The 
418.29 	plan may consist of legislative actions, administrative actions of governmental entities, 
418.30 	collaborative actions, and actions of individuals and individual organizations. Among 
418.31 	other things, the action plan must include the following, with specific and measurable 
418.32 	goals and deadlines for each:
418.33 	(1) actions that will reduce health care expenditures by 20 percent by January 2011, 
418.34 	and limit the rate of growth in health care spending to no greater than the percentage 
418.35 	increase in the Consumer Price Index for all urban consumers plus two percentage points 
418.36 	each year thereafter;
419.1 	(2) actions that will increase the affordable health coverage options for all 
419.2 	Minnesotans and other strategies that will ensure all Minnesotans will have health 
419.3 	coverage by January 2011;
419.4 	(3) actions to improve the quality and safety of health care and reduce racial and 
419.5 	ethnic disparities in access and quality;
419.6 	(4) actions that will improve the health status of Minnesotans and reduce the rate of 
419.7 	preventable chronic illness;
419.8 	(5) proposed changes to state health care purchasing and payment strategies that will 
419.9 	promote higher quality, lower cost health care;
419.10 	(6) actions that will promote the appropriate and cost-effective investment in new 
419.11 	facilities, technologies, and drugs;
419.12 	(7) options for serving small employers and their employees, and self-employed 
419.13 	individuals; and
419.14 	(8) actions to reduce administrative costs.

419.15 	Sec. 22.  REPEALER.
 419.16 	(a) Minnesota Statutes 2006, section 62J.052, subdivision 1, is repealed effective 
419.17 	August 1, 2007.
419.18 	(b) Minnesota Statutes 2006, section 62J.692, subdivision 10, is repealed effective 
419.19 	January 1, 2008.

419.20 	ARTICLE 16
419.21 	PUBLIC HEALTH POLICY

419.22 	Section 1. Minnesota Statutes 2006, section 16B.61, is amended by adding a 
419.23 	subdivision to read:
419.24 		Subd. 3b.Window fall prevention device code. The commissioner of labor and 
419.25 	industry shall adopt rules for window fall prevention devices as part of the state Building 
419.26 	Code. Window fall prevention devices include, but are not limited to, safety screens, 
419.27 	hardware, guards, and other devices that comply with the standards established by the 
419.28 	commissioner of labor and industry. The rules shall require compliance with standards 
419.29 	for window fall prevention devices developed by ASTM International, contained in the 
419.30 	International Building Code as the model language with amendments deemed necessary to 
419.31 	coordinate with the other adopted building codes in Minnesota. The rules shall establish a 
419.32 	scope that includes the applicable building occupancies, and the types, locations, and sizes 
419.33 	of windows that will require the installation of fall devices. The rules will be effective July 
420.1 	1, 2009. The commissioner shall report to the legislature on the status of the rulemaking 
420.2 	on or before February 15, 2008.

420.3 	Sec. 2. Minnesota Statutes 2006, section 103I.101, subdivision 6, is amended to read:
420.4 		Subd. 6.Fees for variances. The commissioner shall charge a nonrefundable 
420.5 	application fee of $175 $215 to cover the administrative cost of processing a request for a 
420.6 	variance or modification of rules adopted by the commissioner under this chapter.

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

420.8 	Sec. 3. Minnesota Statutes 2006, section 103I.208, subdivision 1, is amended to read:
420.9 		Subdivision 1.Well notification fee. The well notification fee to be paid by a 
420.10 	property owner is:
420.11 	(1) for a new water supply well, $175 $215, which includes the state core function 
420.12 	fee;
420.13 	(2) for a well sealing, $35 $50 for each well, which includes the state core function 
420.14 	fee, except that for monitoring wells constructed on a single property, having depths 
420.15 	within a 25 foot range, and sealed within 48 hours of start of construction, a single fee of 
420.16 	$35 $50; and
420.17 	(3) for construction of a dewatering well, $175 $215, which includes the state core 
420.18 	function fee, for each dewatering well except a dewatering project comprising five or 
420.19 	more dewatering wells shall be assessed a single fee of $875 $1,075 for the dewatering 
420.20 	wells recorded on the notification.

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

420.22 	Sec. 4. Minnesota Statutes 2006, section 103I.208, subdivision 2, is amended to read:
420.23 		Subd. 2.Permit fee. The permit fee to be paid by a property owner is:
420.24 	(1) for a water supply well that is not in use under a maintenance permit, $150 $175
420.25 	annually;
420.26 	(2) for construction of a monitoring well, $175 $215, which includes the state 
420.27 	core function fee;
420.28 	(3) for a monitoring well that is unsealed under a maintenance permit, $150 $175
420.29 	annually;
420.30 	(4) for monitoring wells used as a leak detection device at a single motor fuel retail 
420.31 	outlet, a single petroleum bulk storage site excluding tank farms, or a single agricultural 
420.32 	chemical facility site, the construction permit fee is $175 $215, which includes the state 
421.1 	core function fee, per site regardless of the number of wells constructed on the site, and 
421.2 	the annual fee for a maintenance permit for unsealed monitoring wells is $150 $175 per 
421.3 	site regardless of the number of monitoring wells located on site;
421.4 	(5) for a groundwater thermal exchange device, in addition to the notification fee for 
421.5 	water supply wells, $175 $215, which includes the state core function fee;
421.6 	(6) for a vertical heat exchanger, $175 $215;
421.7 	(7) for a dewatering well that is unsealed under a maintenance permit, $150 $175
421.8 	annually for each dewatering well, except a dewatering project comprising more than five 
421.9 	dewatering wells shall be issued a single permit for $750 $875 annually for dewatering 
421.10 	wells recorded on the permit; and
421.11 	(8) for an elevator boring, $175 $215 for each boring.

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

421.13 	Sec. 5. Minnesota Statutes 2006, section 103I.235, subdivision 1, is amended to read:
421.14 		Subdivision 1.Disclosure of wells to buyer. (a) Before signing an agreement to 
421.15 	sell or transfer real property, the seller must disclose in writing to the buyer information 
421.16 	about the status and location of all known wells on the property, by delivering to the buyer 
421.17 	either a statement by the seller that the seller does not know of any wells on the property, 
421.18 	or a disclosure statement indicating the legal description and county, and a map drawn 
421.19 	from available information showing the location of each well to the extent practicable. 
421.20 	In the disclosure statement, the seller must indicate, for each well, whether the well is in 
421.21 	use, not in use, or sealed.
421.22 	(b) At the time of closing of the sale, the disclosure statement information, name and 
421.23 	mailing address of the buyer, and the quartile, section, township, and range in which each 
421.24 	well is located must be provided on a well disclosure certificate signed by the seller or a 
421.25 	person authorized to act on behalf of the seller.
421.26 	(c) A well disclosure certificate need not be provided if the seller does not know 
421.27 	of any wells on the property and the deed or other instrument of conveyance contains 
421.28 	the statement: "The Seller certifies that the Seller does not know of any wells on the 
421.29 	described real property."
421.30 	(d) If a deed is given pursuant to a contract for deed, the well disclosure certificate 
421.31 	required by this subdivision shall be signed by the buyer or a person authorized to act on 
421.32 	behalf of the buyer. If the buyer knows of no wells on the property, a well disclosure 
421.33 	certificate is not required if the following statement appears on the deed followed by the 
421.34 	signature of the grantee or, if there is more than one grantee, the signature of at least one 
421.35 	of the grantees: "The Grantee certifies that the Grantee does not know of any wells on the 
422.1 	described real property." The statement and signature of the grantee may be on the front 
422.2 	or back of the deed or on an attached sheet and an acknowledgment of the statement by 
422.3 	the grantee is not required for the deed to be recordable.
422.4 	(e) This subdivision does not apply to the sale, exchange, or transfer of real property:
422.5 	(1) that consists solely of a sale or transfer of severed mineral interests; or
422.6 	(2) that consists of an individual condominium unit as described in chapters 515 
422.7 	and 515B.
422.8 	(f) For an area owned in common under chapter 515 or 515B the association or other 
422.9 	responsible person must report to the commissioner by July 1, 1992, the location and 
422.10 	status of all wells in the common area. The association or other responsible person must 
422.11 	notify the commissioner within 30 days of any change in the reported status of wells.
422.12 	(g) For real property sold by the state under section 92.67, the lessee at the time of 
422.13 	the sale is responsible for compliance with this subdivision.
422.14 	(h) If the seller fails to provide a required well disclosure certificate, the buyer, or 
422.15 	a person authorized to act on behalf of the buyer, may sign a well disclosure certificate 
422.16 	based on the information provided on the disclosure statement required by this section 
422.17 	or based on other available information.
422.18 	(i) A county recorder or registrar of titles may not record a deed or other instrument 
422.19 	of conveyance dated after October 31, 1990, for which a certificate of value is required 
422.20 	under section 272.115, or any deed or other instrument of conveyance dated after October 
422.21 	31, 1990, from a governmental body exempt from the payment of state deed tax, unless 
422.22 	the deed or other instrument of conveyance contains the statement made in accordance 
422.23 	with paragraph (c) or (d) or is accompanied by the well disclosure certificate containing all 
422.24 	the information required by paragraph (b) or (d). The county recorder or registrar of titles 
422.25 	must not accept a certificate unless it contains all the required information. The county 
422.26 	recorder or registrar of titles shall note on each deed or other instrument of conveyance 
422.27 	accompanied by a well disclosure certificate that the well disclosure certificate was 
422.28 	received. The notation must include the statement "No wells on property" if the disclosure 
422.29 	certificate states there are no wells on the property. The well disclosure certificate shall not 
422.30 	be filed or recorded in the records maintained by the county recorder or registrar of titles. 
422.31 	After noting "No wells on property" on the deed or other instrument of conveyance, the 
422.32 	county recorder or registrar of titles shall destroy or return to the buyer the well disclosure 
422.33 	certificate. The county recorder or registrar of titles shall collect from the buyer or the 
422.34 	person seeking to record a deed or other instrument of conveyance, a fee of $40 $45
422.35 	for receipt of a completed well disclosure certificate. By the tenth day of each month, 
422.36 	the county recorder or registrar of titles shall transmit the well disclosure certificates 
423.1 	to the commissioner of health. By the tenth day after the end of each calendar quarter, 
423.2 	the county recorder or registrar of titles shall transmit to the commissioner of health 
423.3 	$32.50 $37.50 of the fee for each well disclosure certificate received during the quarter. 
423.4 	The commissioner shall maintain the well disclosure certificate for at least six years. The 
423.5 	commissioner may store the certificate as an electronic image. A copy of that image 
423.6 	shall be as valid as the original.
423.7 	(j) No new well disclosure certificate is required under this subdivision if the buyer 
423.8 	or seller, or a person authorized to act on behalf of the buyer or seller, certifies on the deed 
423.9 	or other instrument of conveyance that the status and number of wells on the property 
423.10 	have not changed since the last previously filed well disclosure certificate. The following 
423.11 	statement, if followed by the signature of the person making the statement, is sufficient 
423.12 	to comply with the certification requirement of this paragraph: "I am familiar with the 
423.13 	property described in this instrument and I certify that the status and number of wells on 
423.14 	the described real property have not changed since the last previously filed well disclosure 
423.15 	certificate." The certification and signature may be on the front or back of the deed or on 
423.16 	an attached sheet and an acknowledgment of the statement is not required for the deed or 
423.17 	other instrument of conveyance to be recordable.
423.18 	(k) The commissioner in consultation with county recorders shall prescribe the form 
423.19 	for a well disclosure certificate and provide well disclosure certificate forms to county 
423.20 	recorders and registrars of titles and other interested persons.
423.21 	(l) Failure to comply with a requirement of this subdivision does not impair:
423.22 	(1) the validity of a deed or other instrument of conveyance as between the parties 
423.23 	to the deed or instrument or as to any other person who otherwise would be bound by 
423.24 	the deed or instrument; or
423.25 	(2) the record, as notice, of any deed or other instrument of conveyance accepted for 
423.26 	filing or recording contrary to the provisions of this subdivision.

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

423.28 	Sec. 6. Minnesota Statutes 2006, section 144.123, is amended to read:
423.29 	144.123 FEES FOR DIAGNOSTIC LABORATORY SERVICES; 
423.30 	EXCEPTIONS.
423.31 		Subdivision 1.Who must pay. Except for the limitation contained in this section, 
423.32 	the commissioner of health shall charge a handling fee for each specimen submitted to 
423.33 	the Department of Health for analysis for diagnostic purposes by any hospital, private 
423.34 	laboratory, private clinic, or physician. No fee shall be charged to any entity which 
424.1 	receives direct or indirect financial assistance from state or federal funds administered by 
424.2 	the Department of Health, including any public health department, nonprofit community 
424.3 	clinic, venereal sexually transmitted disease clinic, family planning clinic, or similar 
424.4 	entity. No fee will be charged for any biological materials submitted to the Department 
424.5 	of Health as a requirement of Minnesota Rules, part 4605.7040, or for those biological 
424.6 	materials requested by the department to gather information for disease prevention or 
424.7 	control purposes. The commissioner of health may establish by rule other exceptions to 
424.8 	the handling fee as may be necessary to gather information for epidemiologic purposes
424.9 	protect the public's health. All fees collected pursuant to this section shall be deposited in 
424.10 	the state treasury and credited to the state government special revenue fund.
424.11 		Subd. 2.Rules for Fee amounts. The commissioner of health shall promulgate 
424.12 	rules, in accordance with chapter 14, which shall specify the amount of the charge a
424.13 	handling fee prescribed in subdivision 1. The fee shall approximate the costs to the 
424.14 	department of handling specimens including reporting, postage, specimen kit preparation, 
424.15 	and overhead costs. The fee prescribed in subdivision 1 shall be $15 $25 per specimen 
424.16 	until the commissioner promulgates rules pursuant to this subdivision.

424.17 	Sec. 7. Minnesota Statutes 2006, section 144.125, is amended to read:
424.18 	144.125 TESTS OF INFANTS FOR HERITABLE AND CONGENITAL 
424.19 	DISORDERS.
424.20 		Subdivision 1.Duty to perform testing. It is the duty of (1) the administrative 
424.21 	officer or other person in charge of each institution caring for infants 28 days or less 
424.22 	of age, (2) the person required in pursuance of the provisions of section 144.215, to 
424.23 	register the birth of a child, or (3) the nurse midwife or midwife in attendance at the 
424.24 	birth, to arrange to have administered to every infant or child in its care tests for heritable 
424.25 	and congenital disorders according to subdivision 2 and rules prescribed by the state 
424.26 	commissioner of health. Testing and the recording and reporting of test results shall be 
424.27 	performed at the times and in the manner prescribed by the commissioner of health. The 
424.28 	commissioner shall charge laboratory service fees a fee so that the total of fees collected 
424.29 	will approximate the costs of conducting the tests and implementing and maintaining a 
424.30 	system to follow-up infants with heritable or congenital disorders, including hearing loss 
424.31 	detected through the early hearing detection and intervention program under section 
424.32 	144.966. The laboratory service fee is $61 $101 per specimen. Costs associated with 
424.33 	capital expenditures and the development of new procedures may be prorated over a 
424.34 	three-year period when calculating the amount of the fees. 
425.1 		Subd. 2.Determination of tests to be administered. The commissioner shall 
425.2 	periodically revise the list of tests to be administered for determining the presence of a 
425.3 	heritable or congenital disorder. Revisions to the list shall reflect advances in medical 
425.4 	science, new and improved testing methods, or other factors that will improve the public 
425.5 	health. In determining whether a test must be administered, the commissioner shall take 
425.6 	into consideration the adequacy of laboratory analytical methods to detect the heritable 
425.7 	or congenital disorder, the ability to treat or prevent medical conditions caused by the 
425.8 	heritable or congenital disorder, and the severity of the medical conditions caused by the 
425.9 	heritable or congenital disorder. The list of tests to be performed may be revised if the 
425.10 	changes are recommended by the advisory committee established under section 144.1255, 
425.11 	approved by the commissioner, and published in the State Register. The revision is 
425.12 	exempt from the rulemaking requirements in chapter 14, and sections 14.385 and 14.386
425.13 	do not apply. 
425.14 		Subd. 3.Objection of parents to test. Persons with a duty to perform testing under 
425.15 	subdivision 1 shall advise parents of infants (1) that the blood or tissue samples used to 
425.16 	perform testing thereunder as well as the results of such testing may be retained by the 
425.17 	Department of Health, (2) the benefit of retaining the blood or tissue sample, and (3) that 
425.18 	the following options are available to them with respect to the testing: (i) to decline to 
425.19 	have the tests, or (ii) to elect to have the tests but to require that all blood samples and 
425.20 	records of test results be destroyed within 24 months of the testing. If the parents of 
425.21 	an infant object in writing to testing for heritable and congenital disorders or elect to 
425.22 	require that blood samples and test results be destroyed, the objection or election shall 
425.23 	be recorded on a form that is signed by a parent or legal guardian and made part of the 
425.24 	infant's medical record. A written objection exempts an infant from the requirements of 
425.25 	this section and section 144.128. 

425.26 	Sec. 8. Minnesota Statutes 2006, section 144.9507, is amended by adding a subdivision 
425.27 	to read:
425.28 		Subd. 6.Medical assistance. Medical assistance reimbursement for lead risk 
425.29 	assessment services under section 256B.0625, subdivision 49, shall not be used to replace 
425.30 	or decrease existing state or local funding for lead services and lead-related activities.

425.31 	Sec. 9. Minnesota Statutes 2006, section 144.9512, is amended to read:
425.32 	144.9512 LEAD ABATEMENT PROGRAM.
425.33 		Subdivision 1.Definitions. (a) The definitions in section 144.9501 and in this 
425.34 	subdivision apply to this section.
426.1 	(b) "Eligible organization" means a lead contractor, city, board of health, community 
426.2 	health department, community action agency as defined in section 256E.30, or community 
426.3 	development corporation.
426.4 	(c) "Commissioner" means the commissioner of health, or the commissioner of the 
426.5 	Minnesota Housing Finance Agency as authorized by section 462A.05, subdivision 15c.
426.6 		Subd. 2.Grants; administration. Within the limits of the available appropriation, 
426.7 	the commissioner must develop a swab team services program which may shall make 
426.8 	demonstration and training grants to eligible organizationsa nonprofit organization 
426.9 	currently operating the CLEARCorps lead hazard reduction project to train workers to 
426.10 	provide swab team services and swab team services for residential property. Grants may 
426.11 	be awarded to nonprofit organizations to provide technical assistance and training to 
426.12 	ensure quality and consistency within the statewide program. Grants must be awarded to 
426.13 	help ensure full-time employment to workers providing swab team services and must be 
426.14 	awarded for a two-year period.
426.15 	Grants awarded under this section must be made in consultation with the 
426.16 	commissioner of the Housing Finance Agency and representatives of neighborhood 
426.17 	groups from areas at high risk for toxic lead exposure, a labor organization, the lead 
426.18 	coalition, community action agencies, and the legal aid society. The consulting team must 
426.19 	review grant applications and recommend awards to eligible organizations that meet 
426.20 	requirements for receiving a grant under this section.
426.21 		Subd. 3.Applicants. (a) Interested eligible organizations may apply to the 
426.22 	commissioner for grants under this section. Two or more eligible organizations may 
426.23 	jointly apply for a grant. Priority shall be given to community action agencies in greater 
426.24 	Minnesota and to either community action agencies or neighborhood based nonprofit 
426.25 	organizations in cities of the first class. Of the total annual appropriation, 12.5 percent may 
426.26 	be used for administrative purposes. The commissioner may deviate from this percentage 
426.27 	if a grantee can justify the need for a larger administrative allowance. Of this amount, 
426.28 	up to five percent may be used by the commissioner for state administrative purposes. 
426.29 	Applications must provide information requested by the commissioner, including at least 
426.30 	the information required to assess the factors listed in paragraph (d).
426.31 	(b) The commissioner must consult with boards of health to provide swab team 
426.32 	services for purposes of secondary prevention. The priority for swab teams created 
426.33 	by grants to eligible organizations under this section must be work assigned by the 
426.34 	commissioner of health, or by a board of health if so designated by the commissioner of 
426.35 	health, to provide secondary prevention swab team services to fulfill the requirements 
426.36 	of section 144.9504, subdivision 6, in response to a lead order. Swab teams assigned 
427.1 	work under this section by the commissioner, that are not engaged daily in fulfilling the 
427.2 	requirements of section 144.9504, subdivision 6, must deliver swab team services in 
427.3 	response to elevated blood lead levels as defined in section 144.9501, subdivision 9, 
427.4 	where lead orders were not issued, and for purposes of primary prevention in census 
427.5 	tracts known to be in areas at high risk for toxic lead exposure as described in section 
427.6 	144.9503, subdivision 2.
427.7 	(c) Any additional money must be used for grants to establish swab teams for 
427.8 	primary prevention under section 144.9503, in census tracts in areas at high risk for toxic 
427.9 	lead exposure as determined under section 144.9503, subdivision 2.
427.10 	(d) In evaluating grant applications, the commissioner must consider the following 
427.11 	criteria:
427.12 	(1) the use of lead contractors and lead workers for residential swab team services;
427.13 	(2) the participation of neighborhood groups and individuals, as swab team workers, 
427.14 	in areas at high risk for toxic lead exposure;
427.15 	(3) plans for the provision of swab team services for primary and secondary 
427.16 	prevention as required under subdivision 4;
427.17 	(4) plans for supervision, training, career development, and postprogram placement 
427.18 	of swab team members;
427.19 	(5) plans for resident and property owner education on lead safety;
427.20 	(6) plans for distributing cleaning supplies to area residents and educating residents 
427.21 	and property owners on cleaning techniques;
427.22 	(7) sources of other funding and cost estimates for training, lead inspections, swab 
427.23 	team services, equipment, monitoring, testing, and administration;
427.24 	(8) measures of program effectiveness;
427.25 	(9) coordination of program activities with other federal, state, and local public 
427.26 	health, job training, apprenticeship, and housing renovation programs including programs 
427.27 	under sections 116L.86 to 116L.881; and
427.28 	(10) prior experience in providing swab team services.
427.29 		Subd. 4.Lead supervisor or certified firm Eligible grant activities. (a) Eligible 
427.30 	organizations and lead supervisors or certified firms may participate in the swab team 
427.31 	program. An eligible organization The nonprofit receiving a grant under this section 
427.32 	must assure ensure that all participating lead supervisors or certified firms are licensed 
427.33 	and that all swab team workers are certified by the Department of Health under section 
427.34 	144.9505. Eligible organizations and lead supervisors or certified firms may distinguish 
427.35 	between interior and exterior services in assigning duties and The nonprofit organization
427.36 	may participate in the program by: 
428.1 	(1) providing on-the-job training for swab team workers;
428.2 	(2) providing swab team services to meet the requirements of sections 144.9503, 
428.3 	subdivision 4, and 144.9504, subdivision 6; 
428.4 	(3) providing a removal and replacement component using skilled craft workers 
428.5 	under subdivision 7 lead hazard reduction to meet the requirements of section 144.9501, 
428.6 	subdivision 17;
428.7 	(4) providing lead testing according to subdivision 8;
428.8 	(5) (4) providing lead dust cleaning supplies cleanup equipment and materials, as 
428.9 	described in section 144.9507 144.9503, subdivision 4, paragraph (c) 1, to residents; or
428.10 	(6) (5) having a swab team worker instruct residents and property owners on 
428.11 	appropriate lead control techniques, including the lead-safe directives developed by the 
428.12 	commissioner of health.;
428.13 	(6) conducting blood lead testing events including screening children and pregnant 
428.14 	women according to Department of Health screening guidelines;
428.15 	(7) performing case management services according to Department of Health case 
428.16 	management guidelines; or
428.17 	(8) conducting mandated risk assessments under Minnesota Statutes, section 
428.18 	144.9504, subdivision 2.
428.19 	(b) Participating lead supervisors or certified firms must:
428.20 	(1) demonstrate proof of workers' compensation and general liability insurance 
428.21 	coverage;
428.22 	(2) be knowledgeable about lead abatement requirements established by the 
428.23 	Department of Housing and Urban Development and the Occupational Safety and Health 
428.24 	Administration and lead hazard reduction requirements and lead-safe directives of the 
428.25 	commissioner of health;
428.26 	(3) demonstrate experience with on-the-job training programs;
428.27 	(4) demonstrate an ability to recruit employees from areas at high risk for toxic 
428.28 	lead exposure; and
428.29 	(5) demonstrate experience in working with low-income clients.
428.30 		Subd. 5.Swab team workers. Each worker engaged in swab team services 
428.31 	established under this section must have blood lead concentrations below 15 micrograms 
428.32 	of lead per deciliter of whole blood as determined by a baseline blood lead screening. 
428.33 	Any The nonprofit organization receiving a grant under this section is responsible for lead 
428.34 	screening and must assure ensure that all swab team workers meet the standards established 
428.35 	in this subdivision. Grantees The nonprofit organization must use appropriate workplace 
428.36 	procedures including following the lead-safe directives developed by the commissioner of 
429.1 	health to reduce risk of elevated blood lead levels. Grantees The nonprofit organization
429.2 	and participating contractors must report all employee blood lead levels that exceed 15 
429.3 	micrograms of lead per deciliter of whole blood to the commissioner of health.
429.4 		Subd. 6.On-the-job training component. (a) Programs established under this 
429.5 	section must provide on-the-job training for swab team workers.
429.6 	(b) Swab team workers must receive monetary compensation equal to the prevailing 
429.7 	wage as defined in section 177.42, subdivision 6, for comparable jobs in the licensed 
429.8 	contractor's principal business. 
429.9 		Subd. 7.Removal and replacement component. (a) Within the limits of the 
429.10 	available appropriation and if a need is identified by a lead inspector, the commissioner 
429.11 	may establish a component for removal and replacement of deteriorated paint in residential 
429.12 	properties according to the following criteria:
429.13 	(1) components within a residence must have both deteriorated lead-based paint and 
429.14 	substrate damage beyond repair or rotting wooden framework to be eligible for removal 
429.15 	and replacement;
429.16 	(2) all removal and replacement must be done using least-cost methods and 
429.17 	following lead-safe directives;
429.18 	(3) whenever windows and doors or other components covered with deteriorated 
429.19 	lead-based paint have sound substrate or are not rotting, those components should be 
429.20 	repaired, sent out for stripping, planed down to remove deteriorated lead-based paint, or 
429.21 	covered with protective guards instead of being replaced, provided that such an activity is 
429.22 	the least-cost method of providing the swab team service;
429.23 	(4) removal and replacement or repair must be done by lead contractors using skilled 
429.24 	craft workers or trained swab team members; and
429.25 	(5) all craft work that requires a state license must be supervised by a person with 
429.26 	a state license in the craft work being supervised. The grant recipient may contract for 
429.27 	this supervision.
429.28 	(b) The program design must:
429.29 	(1) identify the need for on-the-job training of swab team workers to be removal and 
429.30 	replacement workers; and
429.31 	(2) describe plans to involve appropriate groups in designing methods to meet the 
429.32 	need for training swab team workers.
429.33 		Subd. 8.Testing and evaluation. (a) Testing of the environment is not necessary 
429.34 	by swab teams whose work is assigned by the commissioner of health or a designated 
429.35 	board of health under section 144.9504. The commissioner of health or designated board 
429.36 	of health must share the analytical testing data collected on each residence for purposes 
430.1 	of secondary prevention under section 144.9504 with the swab team workers in order to 
430.2 	provide constructive feedback on their work and to the commissioner for the purposes 
430.3 	set forth in paragraph (c).
430.4 	(b) For purposes of primary prevention evaluation, the following samples must be 
430.5 	collected: pretesting and posttesting of one noncarpeted floor dust lead sample and a 
430.6 	notation of the extent and location of bare soil and of deteriorated lead-based paint. The 
430.7 	analytical testing data collected on each residence for purposes of primary prevention 
430.8 	under section 144.9503 must be shared with the swab team workers in order to provide 
430.9 	constructive feedback on their work and to the commissioner for the purposes set forth in 
430.10 	paragraph (c).
430.11 	(c) The commissioner of health must establish a program to collect appropriate data 
430.12 	as required under paragraphs (a) and (b), in order to conduct an ongoing evaluation of 
430.13 	swab team services for primary and secondary prevention. Within the limits of available 
430.14 	appropriations, the commissioner of health must conduct on up to 1,000 residences which 
430.15 	have received primary or secondary prevention swab team services, a postremediation 
430.16 	evaluation, on at least a quarterly basis for a period of at least two years for each residence. 
430.17 	The evaluation must note the condition of the paint within the residence, the extent of bare 
430.18 	soil on the grounds, and collect and analyze one noncarpeted floor dust lead sample. 
430.19 	The data collected must be evaluated to determine the efficacy of providing swab team 
430.20 	services as a method of reducing lead exposure in young children. In evaluating this data, 
430.21 	the commissioner of health must consider city size, community location, historic traffic 
430.22 	flow, soil lead level of the property by area or census tract, distance to industrial point 
430.23 	sources that emit lead, season of the year, age of the housing, age and number of children 
430.24 	living at the residence, the presence of pets that move in and out of the residence, and 
430.25 	other relevant factors as the commissioner of health may determine.
430.26 		Subd. 9.Program benefits. As a condition of providing swab team services under 
430.27 	this section, an the nonprofit organization may require a property owner to not increase 
430.28 	rents on a property solely as a result of a substantial improvement made with public 
430.29 	funds under the programs in this section.
430.30 		Subd. 10.Requirements of organizations receiving grants the nonprofit 
430.31 	organization. An eligible The nonprofit organization that is awarded a training and 
430.32 	demonstration grant under this section must prepare and submit a quarterly progress report 
430.33 	to the commissioner beginning three months after receipt of the grant.

430.34 	Sec. 10. [144.966] EARLY HEARING DETECTION AND INTERVENTION 
430.35 	PROGRAM.
431.1 		Subdivision 1.Definitions. (a) "Child" means a person 18 years of age or younger.
431.2 	(b) "False positive rate" means the proportion of infants identified as having a 
431.3 	significant hearing loss by the screening process who are ultimately found to not have a 
431.4 	significant hearing loss.
431.5 	(c) "False negative rate" means the proportion of infants not identified as having 
431.6 	a significant hearing loss by the screening process who are ultimately found to have a 
431.7 	significant hearing loss.
431.8 	(d) "Hearing screening test" means automated auditory brain stem response, 
431.9 	otoacoustic emissions, or another appropriate screening test approved by the Department 
431.10 	of Health.
431.11 	(e) "Hospital" means a birthing health care facility or birthing center licensed in 
431.12 	this state that provides obstetrical services.
431.13 	(f) "Infant" means a child who is not a newborn and has not attained the age of 
431.14 	one year.
431.15 	(g) "Newborn" means an infant 28 days of age or younger.
431.16 	(h) "Parent" means a natural parent, stepparent, adoptive parent, guardian, or 
431.17 	custodian of a newborn or infant.
431.18 		Subd. 2.Newborn Hearing Screening Advisory Committee. (a) The 
431.19 	commissioner of health shall establish a Newborn Hearing Screening Advisory Committee 
431.20 	to advise and assist the Department of Health and the Department of Education in:
431.21 	(1) developing protocols and timelines for screening, rescreening, and diagnostic 
431.22 	audiological assessment and early medical, audiological, and educational intervention 
431.23 	services for children who are deaf or hard-of-hearing;
431.24 	(2) designing protocols for tracking children from birth through age three that may 
431.25 	have passed newborn screening but are at risk for delayed or late onset of permanent 
431.26 	hearing loss;
431.27 	(3) designing a technical assistance program to support facilities implementing the 
431.28 	screening program and facilities conducting rescreening and diagnostic audiological 
431.29 	assessment;
431.30 	(4) designing implementation and evaluation of a system of follow-up and tracking; 
431.31 	and
431.32 	(5) evaluating program outcomes to increase effectiveness and efficiency and ensure 
431.33 	culturally appropriate services for children with a confirmed hearing loss and their families.
431.34 	(b) The commissioner of health shall appoint at least one member from each of the 
431.35 	following groups with no less than two of the members being deaf or hard-of-hearing:
432.1 	(1) a representative from a consumer organization representing culturally deaf 
432.2 	persons;
432.3 	(2) a parent with a child with hearing loss representing a parent organization;
432.4 	(3) a consumer from an organization representing oral communication options;
432.5 	(4) a consumer from an organization representing cued speech communication 
432.6 	options;
432.7 	(5) an audiologist who has experience in evaluation and intervention of infants 
432.8 	and young children;
432.9 	(6) a speech-language pathologist who has experience in evaluation and intervention 
432.10 	of infants and young children;
432.11 	(7) two primary care providers who have experience in the care of infants and young 
432.12 	children, one of which shall be a pediatrician;
432.13 	(8) a representative from the early hearing detection intervention teams;
432.14 	(9) a representative from the Department of Education resource center for the deaf 
432.15 	and hard-of-hearing or the representative's designee;
432.16 	(10) a representative of the Minnesota Commission Serving Deaf and Hard of 
432.17 	Hearing People;
432.18 	(11) a representative from the Department of Human Services Deaf and Hard of 
432.19 	Hearing Services Division;
432.20 	(12) one or more of the Part C coordinators from the Department of Education, 
432.21 	the Department of Health, or the Department of Human Services or the department's 
432.22 	designees;
432.23 	(13) the Department of Health early hearing detection and intervention coordinators;
432.24 	(14) two birth hospital representatives from one rural and one urban hospital;
432.25 	(15) a pediatric geneticist;
432.26 	(16) an otolaryngologist;
432.27 	(17) a representative from the Newborn Screening Advisory Committee under 
432.28 	this subdivision; and
432.29 	(18) a representative of the Department of Education regional low-incidence 
432.30 	facilitators.
432.31 	The commissioner must complete the appointments required under this subdivision by 
432.32 	September 1, 2007.
432.33 	(c) The Department of Health member shall chair the first meeting of the committee. 
432.34 	At the first meeting, the committee shall elect a chair from its membership. The committee 
432.35 	shall meet at the call of the chair, at least four times a year. The committee shall adopt 
432.36 	written bylaws to govern its activities. The Department of Health shall provide technical 
433.1 	and administrative support services as required by the committee. These services shall 
433.2 	include technical support from individuals qualified to administer infant hearing screening, 
433.3 	rescreening, and diagnostic audiological assessments.
433.4 	Members of the committee shall receive no compensation for their service, but 
433.5 	shall be reimbursed as provided in section 15.059 for expenses incurred as a result of 
433.6 	their duties as members of the committee.
433.7 	(d) This subdivision expires June 30, 2013.
433.8 		Subd. 3.Early hearing detection and intervention programs.  All hospitals 
433.9 	shall establish an early hearing detection and intervention (EHDI) program. Each EHDI 
433.10 	program shall:
433.11 	(1) in advance of any hearing screening testing, provide to the newborn's or infant's 
433.12 	parents or parent information concerning the nature of the screening procedure, applicable 
433.13 	costs of the screening procedure, the potential risks and effects of hearing loss, and the 
433.14 	benefits of early detection and intervention;
433.15 	(2) comply with parental consent under section 144.125, subdivision 3;
433.16 	(3) develop policies and procedures for screening and rescreening based on 
433.17 	Department of Health recommendations;
433.18 	(4) provide appropriate training and monitoring of individuals responsible for 
433.19 	performing hearing screening tests as recommended by the Department of Health;
433.20 	(5) test the newborn's hearing prior to discharge, or, if the newborn is expected to 
433.21 	remain in the hospital for a prolonged period, testing shall be performed prior to three 
433.22 	months of age or when medically feasible;
433.23 	(6) develop and implement procedures for documenting the results of all hearing 
433.24 	screening tests;
433.25 	(7) inform the newborn's or infant's parents or parent, primary care physician, and 
433.26 	the Department of Health according to recommendations of the Department of Health of 
433.27 	the results of the hearing screening test or rescreening if conducted, or if the newborn or 
433.28 	infant was not successfully tested. The hospital that discharges the newborn or infant to 
433.29 	home is responsible for the screening; and
433.30 	(8) collect performance data specified by the Department of Health. 
433.31 		Subd. 4.Notification and information. (a) Notification to the parents or parent, 
433.32 	primary care provider, and the Department of Health shall occur prior to discharge or no 
433.33 	later than ten days following the date of testing. Notification shall include information 
433.34 	recommended by the Department of Health.
433.35 	(b) A physician, nurse, midwife, or other health professional attending a birth outside 
433.36 	a hospital or institution shall provide information, orally and in writing, as established by 
434.1 	the Department of Health, to parents regarding places where the parents may have their 
434.2 	infant's hearing screened and the importance of the screening.
434.3 	(c) The professional conducting the diagnostic procedure to confirm the hearing loss 
434.4 	must report the results to the parents, primary care provider, and Department of Health 
434.5 	according to the Department of Health recommendations.
434.6 		Subd. 5.Oversight responsibility. The Department of Health shall exercise 
434.7 	oversight responsibility for EHDI programs, including establishing a performance data set 
434.8 	and reviewing performance data collected by each hospital.
434.9 		Subd. 6.Civil and criminal immunity and penalties. (a) No physician or hospital 
434.10 	shall be civilly or criminally liable for failure to conduct hearing screening testing.
434.11 	(b) No physician, midwife, nurse, other health professional, or hospital acting in 
434.12 	compliance with this section shall be civilly or criminally liable for any acts conforming 
434.13 	with this section, including furnishing information required according to this section.
434.14 		Subd. 7.Fees. The commissioner shall charge  a fee so that the total of fees 
434.15 	collected will approximate the costs of implementing and maintaining a system to follow 
434.16 	up on infants and provide technical assistance, a tracking system, data management, and 
434.17 	evaluation. The  fee shall be incorporated in the fee charged under section 144.125.

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

434.19 	Sec. 11. Minnesota Statutes 2006, section 144E.101, subdivision 6, is amended to read:
434.20 		Subd. 6.Basic life support. (a) Except as provided in paragraph (e), a basic life 
434.21 	support ambulance shall be staffed by at least two ambulance service personnel, at least 
434.22 	one of which must be an EMT, who provide a level of care so as to ensure that:
434.23 	(1) life-threatening situations and potentially serious injuries are recognized;
434.24 	(2) patients are protected from additional hazards;
434.25 	(3) basic treatment to reduce the seriousness of emergency situations is administered; 
434.26 	and
434.27 	(4) patients are transported to an appropriate medical facility for treatment.
434.28 	(b) A basic life support service shall provide basic airway management.
434.29 	(c) By January 1, 2001, a basic life support service shall provide automatic 
434.30 	defibrillation, as provided in section 144E.103, subdivision 1, paragraph (b). 
434.31 	(d) A basic life support service licensee's medical director may authorize the 
434.32 	ambulance service personnel to carry and to use medical antishock trousers and to perform 
434.33 	intravenous infusion if the ambulance service personnel have been properly trained.
434.34 	(e) Upon application from an ambulance service that includes evidence 
434.35 	demonstrating hardship, the board may grant a temporary variance from the staff 
435.1 	requirements in paragraph (a) and may authorize a basic life support ambulance to be 
435.2 	staffed by one EMT and one first responder. The variance shall apply to basic life support 
435.3 	ambulances operated by the ambulance service for up to one year from the date of the 
435.4 	variance's issuance until the ambulance service renews its license. When a variance 
435.5 	expires, an ambulance service may apply for a new variance under this paragraph. For 
435.6 	purposes of this paragraph, "ambulance service" means either an ambulance service whose 
435.7 	primary service area is located outside the metropolitan counties listed in section 473.121, 
435.8 	subdivision 4, and outside the cities of Duluth, Mankato, Moorhead, Rochester, and St. 
435.9 	Cloud; or an ambulance service based in a community with a population of less than 1,000. 

435.10 	Sec. 12. Minnesota Statutes 2006, section 144E.127, is amended to read:
435.11 	144E.127 INTERHOSPITAL; INTERFACILITY TRANSFER.
435.12 		Subdivision 1.Interhospital transfers. When transporting a patient from one 
435.13 	licensed hospital to another, a licensee may substitute for one of the required ambulance 
435.14 	service personnel, a physician, a registered nurse, or physician's assistant who has been 
435.15 	trained to use the equipment in the ambulance and is knowledgeable of the licensee's 
435.16 	ambulance service protocols.
435.17 		Subd. 2.Interfacility transfers. In an interfacility transport, a licensee whose 
435.18 	primary service area is located outside the metropolitan counties listed in section 473.121, 
435.19 	subdivision 4, and outside the cities of Duluth, Mankato, Moorhead, Rochester, and St. 
435.20 	Cloud; or an ambulance service based in a community with a population of less than 1,000, 
435.21 	may substitute one EMT with a registered first responder if an EMT or EMT-paramedic, 
435.22 	physician, registered nurse, or physician's assistant is in the patient compartment. If using 
435.23 	a physician, registered nurse, or physician's assistant as the sole provider in the patient 
435.24 	compartment, the individual must be trained to use the equipment in the ambulance and be 
435.25 	knowledgeable of the ambulance service protocols.

435.26 	Sec. 13. Minnesota Statutes 2006, section 144E.35, subdivision 1, is amended to read:
435.27 		Subdivision 1.Repayment for volunteer training. Any political subdivision, or 
435.28 	nonprofit hospital or nonprofit corporation operating A licensed ambulance service shall 
435.29 	be reimbursed by the board for the necessary expense of the initial training of a volunteer 
435.30 	ambulance attendant upon successful completion by the attendant of a basic emergency 
435.31 	care course, or a continuing education course for basic emergency care, or both, which has 
435.32 	been approved by the board, pursuant to section 144E.285. Reimbursement may include 
435.33 	tuition, transportation, food, lodging, hourly payment for the time spent in the training 
435.34 	course, and other necessary expenditures, except that in no instance shall a volunteer 
436.1 	ambulance attendant be reimbursed more than $450$600 for successful completion of a 
436.2 	basic course, and $225$275 for successful completion of a continuing education course. 

436.3 	Sec. 14. [156.015] FEES.
436.4 		Subdivision 1.Verification of licensure. The board may charge a fee of $25 per 
436.5 	license verification to a licensee for verification of licensure status provided to other 
436.6 	veterinary licensing boards.
436.7 		Subd. 2.Continuing education review. The board may charge a fee of $50 per 
436.8 	submission to a sponsor for review and approval of individual continuing education 
436.9 	seminars, courses, wet labs, and lectures. This fee does not apply to continuing education 
436.10 	sponsors that already meet the criteria for preapproval under Minnesota Rules, part 
436.11 	9100.1000, subpart 3, item A.

436.12 	Sec. 15. Minnesota Statutes 2006, section 198.075, is amended to read:
436.13 	198.075 MINNESOTA VETERANS HOME EMPLOYEES; EXCLUDED 
436.14 	FROM COMMISSARY PRIVILEGES.
436.15 	Except as provided in this section, no commissary privileges including food, laundry 
436.16 	service, janitorial service, and household supplies shall be furnished to any employee of 
436.17 	the Minnesota veterans homes. An employee of the Minnesota veterans homes who works 
436.18 	a second shift that is consecutive with a regularly scheduled shift may be allowed one free 
436.19 	meal at the veterans home on the day of that extra shift.

436.20 	Sec. 16. Minnesota Statutes 2006, section 256B.0625, is amended by adding a 
436.21 	subdivision to read:
436.22 		Subd. 49.Lead risk assessments. (a) Effective October 1, 2007, or six months after 
436.23 	federal approval, whichever is later, medical assistance covers lead risk assessments 
436.24 	provided by a lead risk assessor who is licensed by the commissioner of health under 
436.25 	section 144.9505 and employed by an assessing agency as defined in section 144.9501. 
436.26 	Medical assistance covers a onetime on-site investigation of a recipient's home or primary 
436.27 	residence to determine the existence of lead so long as the recipient is under the age 
436.28 	of 21 and has a venous blood lead level specified in section 144.9504, subdivision 2, 
436.29 	paragraph (a).
436.30 	(b) Medical assistance reimbursement covers the lead risk assessor's time to 
436.31 	complete the following activities:
436.32 	(1) gathering samples;
436.33 	(2) interviewing family members;
437.1 	(3) gathering data, including meter readings; and
437.2 	(4) providing a report with the results of the investigation and options for reducing 
437.3 	lead-based paint hazards.
437.4 	Medical assistance coverage of lead risk assessment does not include testing of 
437.5 	environmental substances such as water, paint, or soil or any other laboratory services. 
437.6 	Medical assistance coverage of lead risk assessments is not included in the capitated 
437.7 	services for children enrolled in health plans through the prepaid medical assistance 
437.8 	program and the MinnesotaCare program.
437.9 	(c) Payment for lead risk assessment must be cost-based and must meet the 
437.10 	criteria for federal financial participation under the Medicaid program. The rate must 
437.11 	be based on allowable expenditures from cost information gathered. Under section 
437.12 	144.9507, subdivision 5, federal medical assistance funds may not replace existing 
437.13 	funding for lead-related activities. The nonfederal share of costs for services provided 
437.14 	under this subdivision must be from state or local funds and is the responsibility of the 
437.15 	agency providing the risk assessment. When the risk assessment is conducted by the 
437.16 	commissioner of health, the state share must be from appropriations to the commissioner 
437.17 	of health for this purpose. Eligible expenditures for the nonfederal share of costs may not 
437.18 	be made from federal funds or funds used to match other federal funds. Any federal 
437.19 	disallowances are the responsibility of the agency providing risk assessment services.

437.20 	Sec. 17. Laws 2005, First Special Session chapter 4, article 9, section 3, subdivision 2, 
437.21 	is amended to read:

437.22
437.23	Subd. 2.Community and Family Health 
Improvement

437.24	Summary by Fund
	
437.25	General
	40,413,000
	40,382,000
	
437.26
437.27	State Government 
Special Revenue
	141,000
	128,000
	
437.28	Health Care Access
	3,510,000
	3,516,000
	
437.29	Federal TANF
	6,000,000
	6,000,000
	
437.30 	Family Planning Base Reduction. Base 
437.31 	level funding for the family planning 
437.32 	special projects grant program is reduced 
437.33 	by $1,877,000 each year of the biennium 
437.34 	beginning July 1, 2007, provided that 
437.35 	this reduction shall only take place 
437.36 	upon full implementation of the family 
438.1 	planning project section of the 1115 waiver. 
438.2 	Notwithstanding Minnesota Statutes, section 
438.3 	145.925, the commissioner shall give priority 
438.4 	to community health care clinics providing 
438.5 	family planning services that either serve a 
438.6 	high number of women who do not qualify 
438.7 	for medical assistance or are unable to 
438.8 	participate in the medical assistance program 
438.9 	as a medical assistance provider when 
438.10 	allocating the remaining appropriations. 
438.11 	Notwithstanding section 15, this paragraph 
438.12 	shall not expire.
438.13 	Shaken Baby Video. Of the state 
438.14 	government special revenue fund 
438.15 	appropriation, $13,000 in 2006 is 
438.16 	appropriated to the commissioner of health 
438.17 	to provide a video to hospitals on shaken 
438.18 	baby syndrome. The commissioner of health 
438.19 	shall assess a fee to hospitals to cover the 
438.20 	cost of the approved shaken baby video and 
438.21 	the revenue received is to be deposited in the 
438.22 	state government special revenue fund.

438.23 	Sec. 18. STUDY OF BLOOD LEAD TESTING METHODS.
 438.24 	(a) The commissioner of health, in consultation with the commissioner of human 
438.25 	services, cities of the first class, health care providers, and other interested parties, shall 
438.26 	conduct a study to evaluate blood lead testing methods used to confirm elevated blood 
438.27 	lead status. The study shall examine:
438.28 	(1) the false positive rate of capillary tests for children who are younger than 72 
438.29 	months old;
438.30 	(2) current protocols for conducting capillary testing, including filter paper 
438.31 	methodology; and 
438.32 	(3) existing guidelines and regulations from other states and federal agencies 
438.33 	regarding lead testing.
438.34 	(b) The commissioner shall make recommendations on:
439.1 	(1) the use of capillary tests to initiate environmental investigations and case 
439.2 	management, including number and timing of tests and fiscal implications for state and 
439.3 	local lead programs; and
439.4 	(2) reducing the state mandatory intervention to ten micrograms of lead per deciliter 
439.5 	of whole blood.
439.6 	(c) The commissioner shall submit the results of the study and recommendations, 
439.7 	including any necessary legislative changes, to the legislature by January 15, 2008.

439.8 	Sec. 19. WINDOW SAFETY EDUCATION.
 439.9 	The commissioner of health shall create in the department's current educational 
439.10 	safety program a component targeted at parents and caregivers of young children to 
439.11 	provide awareness of the need to take precautions to prevent children from falling 
439.12 	through open windows. The commissioner of health shall consult with representatives 
439.13 	of the residential building industry, the window products industry, the child safety 
439.14 	advocacy community, and the Department of Labor and Industry to create the window 
439.15 	safety program component. The program must include the gathering of data about 
439.16 	falls from windows that result in severe injury in order to measure the effectiveness of 
439.17 	the safety program. The commissioner of health may consult with other child safety 
439.18 	advocacy groups, experts, and interested parties in the development and implementation 
439.19 	of the window safety program. The commissioner of health shall prepare and submit 
439.20 	a final report on the window safety program to the legislature by March 1, 2011. The 
439.21 	commissioner shall prepare and submit a yearly progress report to the legislature by 
439.22 	March 1 of each year beginning in 2008 until the submission of the final report. The 
439.23 	final report must include a summary of the safety program, the impact of the program on 
439.24 	children falling from windows, and any recommendations for further study or action.

439.25 	Sec. 20. REVISOR'S INSTRUCTION.
 439.26 	The revisor of statutes shall change the range reference "144.9501 to 144.9509" 
439.27 	to "144.9501 to 144.9512" wherever the reference appears in Minnesota Statutes and 
439.28 	Minnesota Rules.

439.29 	Sec. 21.  REPEALER.
 439.30 	Laws 2004, chapter 288, article 6, section 27, is repealed.

440.1 	ARTICLE 17
440.2 	PUBLIC HEALTH

440.3 	Section 1. Minnesota Statutes 2006, section 145A.17, is amended to read:
440.4 	145A.17 FAMILY HOME VISITING PROGRAMS.
440.5 		Subdivision 1.Establishment; goals. The commissioner shall establish a program 
440.6 	to fund family home visiting programs designed to foster a healthy beginning for children 
440.7 	in families at or below 200 percent of the federal poverty guidelines beginnings, improve 
440.8 	pregnancy outcomes, promote school readiness, prevent child abuse and neglect, reduce 
440.9 	juvenile delinquency, promote positive parenting and resiliency in children, and promote 
440.10 	family health and economic self-sufficiency for children and families. The commissioner 
440.11 	shall promote partnerships, collaboration, and multidisciplinary visiting done by teams of 
440.12 	professionals and paraprofessionals from the fields of public health nursing, social work, 
440.13 	and early childhood education. A program funded under this section must serve families 
440.14 	at or below 200 percent of the federal poverty guidelines, and other families determined 
440.15 	to be at risk, including but not limited to being at risk for child abuse, child neglect, or 
440.16 	juvenile delinquency. Programs must give priority for services to families considered to 
440.17 	be in need of services, including but not limited tobegin prenatally whenever possible and 
440.18 	must be targeted to families with:
440.19 	(1) adolescent parents;
440.20 	(2) a history of alcohol or other drug abuse;
440.21 	(3) a history of child abuse, domestic abuse, or other types of violence;
440.22 	(4) a history of domestic abuse, rape, or other forms of victimization;
440.23 	(5) reduced cognitive functioning;
440.24 	(6) a lack of knowledge of child growth and development stages;
440.25 	(7) low resiliency to adversities and environmental stresses; or
440.26 	(8) insufficient financial resources to meet family needs;
440.27 	(9) a history of homelessness;
440.28 	(10) a risk of long-term welfare dependence or family instability due to employment 
440.29 	barriers; or
440.30 	(11) other risk factors as determined by the commissioner.
440.31 		Subd. 3.Requirements for programs; process. (a) Before a community health 
440.32 	board or tribal government may receive an allocation under subdivision 2, a community 
440.33 	health board or tribal government must submit a proposal to the commissioner that 
440.34 	includes identification, based on a community assessment, of the populations at or below 
440.35 	200 percent of the federal poverty guidelines that will be served and the other populations 
441.1 	that will be served. Each program that receives funds must Community health boards 
441.2 	and tribal governments that receive funding under this section must submit a plan to 
441.3 	the commissioner describing a multidisciplinary approach to targeted home visiting for 
441.4 	families. The plan must be submitted on forms provided by the commissioner. At a 
441.5 	minimum, the plan must include the following:
441.6 	(1) a description of outreach strategies to families prenatally or at birth;
441.7 	(2) provisions for the seamless delivery of health, safety, and early learning services; 
441.8 	(3) methods to promote continuity of services when families move within the state;
441.9 	(4) a description of the community demographics;
441.10 	(5) a plan for meeting outcome measures; and
441.11 	(6) a proposed work plan that includes:
441.12 	(i) coordination to ensure nonduplication of services for children and families;
441.13 	(ii) a description of the strategies to ensure that children and families at greatest risk 
441.14 	receive appropriate services; and
441.15 	(iii) collaboration with multidisciplinary partners including public health, 
441.16 	ECFE, Head Start, community health workers, social workers, community home 
441.17 	visiting programs, school districts, and other relevant partners. Letters of intent from 
441.18 	multidisciplinary partners must be submitted with the plan.
441.19 	(b) Each program that receives funds must accomplish the following program 
441.20 	requirements:
441.21 	(1) use either a broad community-based or selective community-based strategy to 
441.22 	provide preventive and early intervention home visiting services;
441.23 	(2) offer a home visit by a trained home visitor. If a home visit is accepted, the first 
441.24 	home visit must occur prenatally or as soon after birth as possible and must include a 
441.25 	public health nursing assessment by a public health nurse;
441.26 	(3) offer, at a minimum, information on infant care, child growth and development, 
441.27 	positive parenting, preventing diseases, preventing exposure to environmental hazards, 
441.28 	and support services available in the community;
441.29 	(4) provide information on and referrals to health care services, if needed, including 
441.30 	information on and assistance in applying for health care coverage for which the child or 
441.31 	family may be eligible; and provide information on preventive services, developmental 
441.32 	assessments, and the availability of public assistance programs as appropriate;
441.33 	(5) provide youth development programs when appropriate;
441.34 	(6) recruit home visitors who will represent, to the extent possible, the races, 
441.35 	cultures, and languages spoken by families that may be served;
442.1 	(7) train and supervise home visitors in accordance with the requirements established 
442.2 	under subdivision 4;
442.3 	(8) maximize resources and minimize duplication by coordinating activitiesor 
442.4 	contracting with local social and human services organizations, education organizations, 
442.5 	and other appropriate governmental entities and community-based organizations and 
442.6 	agencies; and
442.7 	(9) utilize appropriate racial and ethnic approaches to providing home visiting 
442.8 	services; and
442.9 	(10) connect eligible families, as needed, to additional resources available in the 
442.10 	community, including, but not limited to, early care and education programs, health or 
442.11 	mental health services, family literacy programs, employment agencies, social services, 
442.12 	and child care resources and referral agencies.
442.13 	(c) When available, programs that receive funds under this section must offer or 
442.14 	provide the family with a referral to center-based or group meetings that meet at least 
442.15 	once per month for those families identified with additional needs. The meetings must 
442.16 	focus on further enhancing the information, activities, and skill-building addressed during 
442.17 	home visitation; offering opportunities for parents to meet with and support each other; 
442.18 	and offering infants and toddlers a safe, nurturing, and stimulating environment for 
442.19 	socialization and supervised play with qualified teachers.
442.20 	(b)(d) Funds available under this section shall not be used for medical services. The 
442.21 	commissioner shall establish an administrative cost limit for recipients of funds. The 
442.22 	outcome measures established under subdivision 6 must be specified to recipients of 
442.23 	funds at the time the funds are distributed.
442.24 	(c)(e) Data collected on individuals served by the home visiting programs must 
442.25 	remain confidential and must not be disclosed by providers of home visiting services 
442.26 	without a specific informed written consent that identifies disclosures to be made. 
442.27 	Upon request, agencies providing home visiting services must provide recipients with 
442.28 	information on disclosures, including the names of entities and individuals receiving the 
442.29 	information and the general purpose of the disclosure. Prospective and current recipients 
442.30 	of home visiting services must be told and informed in writing that written consent for 
442.31 	disclosure of data is not required for access to home visiting services.
442.32 		Subd. 4.Training. The commissioner shall establish training requirements for 
442.33 	home visitors and minimum requirements for supervision by a public health nurse. The 
442.34 	requirements for nurses must be consistent with chapter 148. The commissioner must 
442.35 	provide training for home visitors. Training must include child development, positive 
443.1 	parenting techniques, screening and referrals for child abuse and neglect, and diverse 
443.2 	cultural practices in child rearing and family systems the following:
443.3 	(1) effective relationships for engaging and retaining families and ensuring family 
443.4 	health, safety, and early learning;
443.5 	(2) effective methods of implementing parent education, conducting home visiting, 
443.6 	and promoting quality early childhood development;
443.7 	(3) early childhood development from birth to age five;
443.8 	(4) diverse cultural practices in child rearing and family systems;
443.9 	(5) recruiting, supervising, and retaining qualified staff;
443.10 	(6) increasing services for underserved populations; and 
443.11 	(7) relevant issues related to child welfare and protective services, with information 
443.12 	provided being consistent with state child welfare agency training.
443.13 		Subd. 5.Technical assistance. The commissioner shall provide administrative 
443.14 	and technical assistance to each program, including assistance in data collection and 
443.15 	other activities related to conducting short- and long-term evaluations of the programs 
443.16 	as required under subdivision 7. The commissioner may request research and evaluation 
443.17 	support from the University of Minnesota.
443.18 		Subd. 6.Outcome and performance measures. The commissioner shall establish 
443.19 	outcomesmeasures to determine the impact of family home visiting programs funded 
443.20 	under this section on the following areas:
443.21 	(1) appropriate utilization of preventive health care;
443.22 	(2) rates of substantiated child abuse and neglect;
443.23 	(3) rates of unintentional child injuries;
443.24 	(4) rates of children who are screened and who pass early childhood screening; and
443.25 	(5) rates of children accessing early care and educational services;
443.26 	(6) program retention rates;
443.27 	(7) number of home visits provided compared to the number of home visits planned;
443.28 	(8) participant satisfaction;
443.29 	(9) rates of at-risk populations reached; and
443.30 	(10) any additional qualitative goals and quantitative measures established by the 
443.31 	commissioner.
443.32 		Subd. 7.Evaluation. Using the qualitative goals and quantitative outcome and 
443.33 	performance measures established under subdivisions 1 and 6, the commissioner shall 
443.34 	conduct ongoing evaluations of the programs funded under this section. Community 
443.35 	health boards and tribal governments shall cooperate with the commissioner in the 
443.36 	evaluations and shall provide the commissioner with the information necessary to conduct 
444.1 	the evaluations. As part of the ongoing evaluations, the commissioner shall rate the impact 
444.2 	of the programs on the outcome measures listed in subdivision 6, and shall periodically 
444.3 	determine whether home visiting programs are the best way to achieve the qualitative 
444.4 	goals established under subdivisions 1 and 6. If the commissioner determines that home 
444.5 	visiting programs are not the best way to achieve these goals, the commissioner shall 
444.6 	provide the legislature with alternative methods for achieving them.
444.7 		Subd. 8.Report. By January 15, 2002, and January 15 of each even-numbered 
444.8 	year thereafter, the commissioner shall submit a report to the legislature on the family 
444.9 	home visiting programs funded under this section and on the results of the evaluations 
444.10 	conducted under subdivision 7.
444.11 		Subd. 9.No supplanting of existing funds. Funding available under this section 
444.12 	may be used only to supplement, not to replace, nonstate funds being used for home 
444.13 	visiting services as of July 1, 2001.

444.14 	Sec. 2. WATER LEVEL STANDARDS.
 444.15 	(a) Until the commissioner of health adopts rules setting the health risk limits 
444.16 	required in paragraph (b), the health risk limit for all contaminants in private domestic 
444.17 	wells must be the more stringent of the state standards or the federal standards determined 
444.18 	by the United States Environmental Protection Agency.
444.19 	(b) By March 1, 2008, the commissioner of health must publish in the State Register 
444.20 	notice of intent to adopt rules relating to health risk limits for commonly detected 
444.21 	contaminants. The commissioner of health shall review current scientific information to 
444.22 	establish health risk limits for commonly detected contaminants in groundwater that 
444.23 	provides a reasonable margin of safety to adequately protect the health of developing 
444.24 	fetuses, infants, and children, in accordance with the requirements of Minnesota Statutes, 
444.25 	section 144.0751. Nothing in paragraph (a) prohibits the commissioner from setting 
444.26 	standards that are stricter than the federal standards.
444.27 	(c) By March 1, 2009, the commissioner shall adopt rules relating to health risk 
444.28 	limits for the ten most commonly detected contaminants.
444.29 	(d) By February 1, 2008, the commissioner shall report to the legislature on the 
444.30 	implications for public health and the costs to enforce the more stringent of health risk 
444.31 	limits or maximum contaminant levels for public water systems.

444.32 	Sec. 3. FUNDING FOR ENVIRONMENTAL JUSTICE MAPPING.
 444.33 	The commissioner of health, in conjunction with the commissioner of the Pollution 
444.34 	Control Agency, shall apply for federal funding to renew and expand the state's 
445.1 	environmental justice mapping capacity in order to promote public health tracking. If 
445.2 	implemented, the commissioner of health shall coordinate the project with the Pollution 
445.3 	Control Agency and the Department of Agriculture in order to explore possible links 
445.4 	between environmental health and toxic exposures and to help create a system for 
445.5 	environmental public health tracking and make recommendations to the legislature for 
445.6 	additional sources of funding within the state.

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

445.8 	Sec. 4. FRAGRANCE-FREE SCHOOLS EDUCATION PILOT PROJECT.
 445.9 		Subdivision 1.Purpose. Recognizing that scented products may trigger asthma or 
445.10 	chemical sensitivity reactions in students and school staff, which can contribute to learning 
445.11 	and breathing problems, the commissioner of health shall develop a fragrance-free schools 
445.12 	education pilot project.
445.13 		Subd. 2.Education. The commissioner of health, in collaboration with the 
445.14 	Minneapolis Board of Education, shall establish a working group composed of at least 
445.15 	three students, two teachers, one school administrator, and one member of the Minneapolis 
445.16 	Board of Education to recommend an education campaign in Minneapolis public schools 
445.17 	to inform students and parents about the potentially harmful effects of the use of fragrance 
445.18 	products on sensitive students and school personnel in Minneapolis schools. The 
445.19 	commissioner shall report findings to the legislature by February 1, 2008.

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

445.21 	Sec. 5. MEDICAL ASSISTANCE COVERAGE FOR ARSENIC TESTING.
 445.22 	The commissioner of human services shall inform providers that testing for arsenic 
445.23 	under Minnesota Statutes, section 144.967, is covered under medical assistance.

445.24 	ARTICLE 18
445.25 	HUMAN SERVICES FORECAST ADJUSTMENTS

445.26
445.27	Section 1.  SUMMARY OF APPROPRIATIONS; DEPARTMENT OF HUMAN 
SERVICES FORECAST ADJUSTMENT.
 	
445.28 	The dollar amounts shown are added to or, if shown in parentheses, are subtracted 
445.29 	from the appropriations in Laws 2006, chapter 282, from the general fund, or any other 
445.30 	fund named, to the Department of Human Services for the purposes specified in this 
445.31 	article, to be available for the fiscal year indicated for each purpose. The figure "2007" 
446.1 	used in this article means that the appropriation or appropriations listed are available 
446.2 	for the fiscal year ending June 30, 2007.

446.3							2007
	
446.4	General Fund
					$
	(25,226,000)
	
446.5	Health Care Access
					$
	(53,980,000)
	
446.6	TANF
					$
	(24,805,000)
	
446.7	Total
					$
	(104,011,000)

446.8
446.9	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

446.10	Subdivision 1.Total Appropriation
 			$
	(104,011,000)

446.11	Appropriations by Fund
	
446.12			2007
	
446.13	General
		(25,226,000)
	
446.14	Health Care Access
		(53,980,000)
	
446.15	TANF
		(24,805,000)

446.16	Subd. 2.Revenue and Pass Through

446.17	TANF
				(106,000)

446.18
446.19	Subd. 3.Children and Economic Assistance 
Grants

446.20	General
				3,221,000
	
446.21	TANF
						(24,699,000)
	
446.22 	The amounts that may be spent from this 
446.23 	appropriation for each purpose are as follows:

446.24	(a) MFIP/DWP Grants
					
446.25	General
						13,827,000
	
446.26	TANF
						(24,699,000)

446.27	(b) MFIP Child Care Assistance Grants
					
446.28	General
						(4,733,000)

446.29	(c) General Assistance Grants
					
446.30	General
						1,081,000

446.31	(d) Minnesota Supplemental Aid Grants
					
446.32	General
						(1,099,000)

446.33	(e) Group Residential Housing Grants
					
446.34	General
						(5,855,000)

446.35	Subd. 4.Basic Health Care Grants

447.1	General
				17,592,000
	
447.2	Health Care Access
						(53,980,000)
	
447.3 	The amounts that may be spent from this 
447.4 	appropriation for each purpose are as follows:

447.5	(a) MinnesotaCare Health Care Access
				(53,980,000)

447.6	(b) MA Basic Health Care - Families and Children
					
447.7	General
						15,729,000

447.8	(c) MA Basic Health Care - Elderly and Disabled
					
447.9	General
						(4,540,000)

447.10	(d) General Assistance Medical Care
					
447.11	General
						6,403,000

447.12	Subd. 5.Continuing Care Grants

447.13	General
				(46,039,000)
	
447.14 	The amounts that may be spent from this 
447.15 	appropriation for each purpose are as follows:

447.16	(a) MA Long-Term Care Facilities
					
447.17	General
						(15,028,000)

447.18	(b) MA Long-Term Care Waivers
					
447.19	General
						(20,677,000)

447.20	(c) Chemical Dependency Entitlement Grants
					
447.21	General
						(10,334,000)

447.22 	Sec. 3. EFFECTIVE DATE.
 447.23 	Sections 1 and 2 are effective the day following final enactment.

447.24 	ARTICLE 19
447.25 	HUMAN SERVICES APPROPRIATIONS

447.26	Section 1. SUMMARY OF APPROPRIATIONS.
 	
447.27 	The amounts shown in this section summarize direct appropriations, by fund, made 
447.28 	in this article.

447.29			2008
		2009
		Total
	
447.30	General
	$
	4,749,084,000
	$
	5,070,979,000
	$
	9,820,063,000
	
447.31
447.32	State Government Special 
Revenue
		59,686,000
		58,595,000
		118,281,000
	
448.1	Health Care Access
		441,426,000
		506,894,000
		948,320,000
	
448.2	Federal TANF
		261,955,000
		271,784,000
		533,739,000
	
448.3	Lottery Prize Fund
		2,185,000
		1,790,000
		3,975,000
	
448.4	Total
	$
	5,514,336,000
	$
	5,910,042,000
	$
	11,424,378,000

448.5	Sec. 2. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
448.6 	The sums shown in the columns marked "Appropriations" are appropriated to the 
448.7 	agencies and for the purposes specified in this article. The appropriations are from the 
448.8 	general fund, or another named fund, and are available for the fiscal years indicated 
448.9 	for each purpose. The figures "2008" and "2009" used in this article mean that the 
448.10 	appropriations listed under them are available for the fiscal year ending June 30, 2008, or 
448.11 	June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 
448.12 	year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal 
448.13 	year ending June 30, 2007, are effective the day following final enactment.

448.14				APPROPRIATIONS
	
448.15				Available for the Year
	
448.16				Ending June 30
	
448.17					2008
		2009

448.18	Sec. 3. HUMAN SERVICES

448.19	Subdivision 1.Total Appropriation
 	$
	 5,294,627,000
	$
	 5,695,458,000

448.20	Appropriations by Fund
	
448.21		2008
	2009
	
448.22	General
	4,614,727,000
	4,940,293,000
	
448.23
448.24	State Government 
Special Revenue
	549,000
	565,000
	
448.25	Health Care Access
	426,628,000
	492,759,000
	
448.26	Federal TANF
	250,537,000
	260,051,000
	
448.27	Lottery Prize Fund
	2,185,000
	1,790,000
	
448.28 	The amounts that may be spent for each 
448.29 	purpose are specified in the following 
448.30 	subdivisions.
448.31 	Receipts for Systems Projects.
448.32 	Appropriations and federal receipts for 
448.33 	information system projects for MAXIS, 
448.34 	PRISM, MMIS, and SSIS must be deposited 
448.35 	in the state system account authorized in 
448.36 	Minnesota Statutes, section 256.014. Money 
449.1 	appropriated for computer projects approved 
449.2 	by the Minnesota Office of Enterprise 
449.3 	Technology, funded by the legislature, and 
449.4 	approved by the commissioner of finance, 
449.5 	may be transferred from one project to 
449.6 	another and from development to operations 
449.7 	as the commissioner of human services 
449.8 	considers necessary. Any unexpended 
449.9 	balance in the appropriation for these 
449.10 	projects does not cancel but is available for 
449.11 	ongoing development and operations.
449.12 	Pay for Performance. (a) Of the general 
449.13 	fund appropriation, $272,000 each year 
449.14 	is available to the commissioner of 
449.15 	human services only under the following 
449.16 	circumstances:
449.17 	(1) $272,000 shall be made available by the 
449.18 	commissioner of finance on January 1, 2009, 
449.19 	only after notification by the commissioner 
449.20 	of human services to the commissioner of 
449.21 	finance and to the chairs of the relevant house 
449.22 	of representatives and senate finance and 
449.23 	policy committees that the average number 
449.24 	of days from the receipt of a MinnesotaCare 
449.25 	application at the state processing unit until 
449.26 	the initial eligibility determination of the 
449.27 	application was 30 days or less during the 
449.28 	period October 1, 2007, to September 30, 
449.29 	2008. Applications transferred from counties 
449.30 	to the state processing unit are excluded from 
449.31 	this calculation; and 
449.32 	(2) $272,000 shall be made available by the 
449.33 	commissioner of finance on January 1, 2009, 
449.34 	only after notification by the commissioner 
449.35 	of human services to the commissioner of 
450.1 	finance and to the chairs of the relevant 
450.2 	house of representatives and senate finance 
450.3 	and policy committees that the commissioner 
450.4 	initiated a separate treatment program for 
450.5 	persons in the Minnesota sex offenders 
450.6 	program who are between the ages of 18 and 
450.7 	25 by January 1, 2008.
450.8 	(b) Regardless of whether these 
450.9 	appropriations are made available to 
450.10 	the commissioner of human services, they 
450.11 	shall be part of base level funding for the 
450.12 	biennium beginning July 1, 2009.
450.13 	Purchasing Alliance Fund Transfer.
450.14 	On September 1, 2007, any remaining 
450.15 	balance in the purchasing alliance stop-loss 
450.16 	fund account established under Minnesota 
450.17 	Statutes, section 256.956, shall transfer to 
450.18 	the general fund.
450.19 	Nonfederal Share Transfers. The 
450.20 	nonfederal share of activities for which 
450.21 	federal administrative reimbursement is 
450.22 	appropriated to the commissioner may be 
450.23 	transferred to the special revenue fund.
450.24 	TANF Maintenance of Effort. (a) In order 
450.25 	to meet the basic MOE requirements of the 
450.26 	TANF block grant specified under Code 
450.27 	of Federal Regulations, title 45, section 
450.28 	263.1, the commissioner may only report 
450.29 	nonfederal money expended for allowable 
450.30 	activities listed in the following clauses as 
450.31 	TANF/MOE expenditures:
450.32 	(1) MFIP cash, diversionary work program, 
450.33 	and food assistance benefits under Minnesota 
450.34 	Statutes, chapter 256J;
451.1 	(2) the child care assistance programs 
451.2 	under Minnesota Statutes, sections 119B.03 
451.3 	and 119B.05, and county child care 
451.4 	administrative costs under Minnesota 
451.5 	Statutes, section 119B.15;
451.6 	(3) state and county MFIP administrative 
451.7 	costs under Minnesota Statutes, chapters 
451.8 	256J and 256K;
451.9 	(4) state, county, and tribal MFIP 
451.10 	employment services under Minnesota 
451.11 	Statutes, chapters 256J and 256K;
451.12 	(5) expenditures made on behalf of 
451.13 	noncitizen MFIP recipients who qualify 
451.14 	for the medical assistance without federal 
451.15 	financial participation program under 
451.16 	Minnesota Statutes, section 256B.06, 
451.17 	subdivision 4, paragraphs (d), (e), and (j); 
451.18 	and
451.19 	(6) qualifying working family credit 
451.20 	expenditures under Minnesota Statutes, 
451.21 	section 290.0671.
451.22 	(b) The commissioner shall ensure that 
451.23 	sufficient qualified nonfederal expenditures 
451.24 	are made each year to meet the state's 
451.25 	TANF/MOE requirements. For the activities 
451.26 	listed in paragraph (a), clauses (2) to 
451.27 	(6), the commissioner may only report 
451.28 	expenditures that are excluded from the 
451.29 	definition of assistance under Code of 
451.30 	Federal Regulations, title 45, section 260.31.
451.31 	(c) The commissioner shall ensure that the 
451.32 	MOE used by the commissioner of finance 
451.33 	for the February and November forecasts 
451.34 	required under Minnesota Statutes, section 
451.35 	16A.103, contains expenditures under 
452.1 	paragraph (a), clause (1), equal to at least 16 
452.2 	percent of the total required under Code of 
452.3 	Federal Regulations, title 45, section 263.1.
452.4 	(d) Minnesota Statutes, section 256.011, 
452.5 	subdivision 3, which requires that federal 
452.6 	grants or aids secured or obtained under that 
452.7 	subdivision be used to reduce any direct 
452.8 	appropriations provided by law, does not 
452.9 	apply if the grants or aids are federal TANF 
452.10 	funds.
452.11 	(e) Notwithstanding any contrary provision 
452.12 	in this article, this rider expires June 30, 
452.13 	2011.
452.14 	Working Family Credit Expenditures as 
452.15 	TANF/MOE. The commissioner may claim 
452.16 	as TANF/MOE up to $6,707,000 per year 
452.17 	for fiscal year 2008 through fiscal year 2011. 
452.18 	Notwithstanding any contrary provision in 
452.19 	this article, this rider expires June 30, 2011.
452.20 	Additional Working Family Credit 
452.21 	Expenditures to be Claimed for 
452.22 	TANF/MOE. In addition to the amounts 
452.23 	provided in this section, the commissioner 
452.24 	may count the following amounts of working 
452.25 	family credit expenditure as TANF/MOE:
452.26 	(1) fiscal year 2008, $11,097,000;
452.27 	(2) fiscal year 2009, $25,401,000;
452.28 	(3) fiscal year 2010, $20,398,000; and
452.29 	(4) fiscal year 2011, $19,841,000.
452.30 	Notwithstanding any contrary provision in 
452.31 	this article, this rider expires June 30, 2011.
452.32 	Capitation Rate Increase. Of the health care 
452.33 	access fund appropriations to the University 
452.34 	of Minnesota in the higher education 
453.1 	omnibus appropriation bill, $2,157,000 in 
453.2 	fiscal year 2008 and $2,157,000 in fiscal year 
453.3 	2009 are to be used to increase the capitation 
453.4 	payments under Minnesota Statutes, section 
453.5 	256B.69.

453.6	Subd. 2.Agency Management
 					
453.7 	The amounts that may be spent from the 
453.8 	appropriation for each purpose are as follows:

453.9	(a) Financial Operations

453.10	Appropriations by Fund
	
453.11	General
	7,165,000
	7,652,000
	
453.12	Health Care Access
	 799,000
	 804,000
	
453.13	Federal TANF
	122,000
	122,000

453.14	(b) Legal and Regulation Operations

453.15	Appropriations by Fund
	
453.16	General
	 12,337,000
	12,424,000
	
453.17
453.18	State Government 
Special Revenue
	427,000
	440,000
	
453.19	Health Care Access
	900,000
	926,000
	
453.20	Federal TANF
	100,000
	100,000
	
453.21 	Base Adjustment. The general fund base 
453.22 	is $12,361,000 for each of fiscal years 2010 
453.23 	and 2011.

453.24	(c) Management Operations

453.25	Appropriations by Fund
	
453.26	General
	4,332,000
	4,419,000
	
453.27	Health Care Access
	236,000
	243,000

453.28	(d) Information Technology Operations

453.29	Appropriations by Fund
	
453.30	General
	23,949,000
	23,922,000
	
453.31	Health Care Access
	6,015,000
	5,972,000

453.32
453.33	Subd. 3.Revenue and Pass-Through 
Expenditures

453.34	Federal TANF
	 57,896,000
	59,900,000
	
454.1 	TANF Transfer to Federal Child Care 
454.2 	and Development Fund. The following 
454.3 	TANF fund amounts are appropriated to the 
454.4 	commissioner for the purposes of MFIP and 
454.5 	transition year child care under Minnesota 
454.6 	Statutes, section 119B.05:
454.7 	(1) fiscal year 2008, $1,387,000;
454.8 	(2) fiscal year 2009, $3,003,000;
454.9 	(3) fiscal year 2010, $4,944,000; and
454.10 	(4) fiscal year 2011, $6,893,000.
454.11 	The commissioner shall authorize transfer 
454.12 	of sufficient TANF funds to the federal 
454.13 	child care and development fund to meet 
454.14 	this appropriation and shall ensure that all 
454.15 	transferred funds are expended according 
454.16 	the federal child care and development fund 
454.17 	regulations.

454.18
454.19	Subd. 4.Children and Economic Assistance 
Grants
 					
454.20 	The amounts that may be spent from this 
454.21 	appropriation for each purpose are as follows:

454.22	(a) MFIP/DWP Grants

454.23	Appropriations by Fund
	
454.24	General
	62,069,000
	62,405,000
	
454.25	Federal TANF
	 75,904,000
	80,841,000

454.26	(b) Support Services Grants

454.27	Appropriations by Fund
	
454.28	General
	8,715,000
	8,715,000
	
454.29	Federal TANF
	113,429,000
	115,902,000
	
454.30 	TANF Prior Appropriation Cancellation.
454.31 	Notwithstanding Laws 2001, First Special 
454.32 	Session chapter 9, article 17, section 
454.33 	2, subdivision 11, paragraph (b), any 
454.34 	unexpended TANF funds appropriated to the 
455.1 	commissioner to contract with the Board of 
455.2 	Trustees of Minnesota State Colleges and 
455.3 	Universities, to provide tuition waivers to 
455.4 	employees of health care and human service 
455.5 	providers that are members of qualifying 
455.6 	consortia operating under Minnesota 
455.7 	Statutes, sections 116L.10 to 116L.15, must 
455.8 	cancel at the end of fiscal year 2007.
455.9 	MFIP Pilot Program. Of the TANF 
455.10 	appropriation, $100,000 in fiscal year 2008 
455.11 	and $750,000 in fiscal year 2009 are for a 
455.12 	grant to the Stearns-Benton Employment and 
455.13 	Training Council for the Workforce U pilot 
455.14 	program. Base level funding for this program 
455.15 	shall be $750,000 in 2010 and $0 in 2011.
455.16 	Supported Work. (1) Of the TANF 
455.17 	appropriation, $5,468,000 in fiscal year 
455.18 	2008 and $7,291,000 in fiscal year 
455.19 	2009 are for supported work for MFIP 
455.20 	participants, to be allocated to counties 
455.21 	and tribes based on the criteria under 
455.22 	clauses (2) and (3). Paid transitional work 
455.23 	experience and other supported employment 
455.24 	under this rider provides a continuum of 
455.25 	employment assistance, including outreach 
455.26 	and recruitment, program orientation 
455.27 	and intake, testing and assessment, job 
455.28 	development and marketing, preworksite 
455.29 	training, supported worksite experience, job 
455.30 	coaching, and postplacement follow-up, in 
455.31 	addition to extensive case management and 
455.32 	referral services.
455.33 	(2) A county or tribe is eligible to receive an 
455.34 	allocation under this rider if:
456.1 	(i) the county or tribe is not meeting the 
456.2 	federal work participation rate;
456.3 	(ii) the county or tribe has participants who 
456.4 	are required to perform work activities under 
456.5 	Minnesota Statutes, chapter 256J, but are not 
456.6 	meeting hourly work requirements; and
456.7 	(iii) the county or tribe has assessed 
456.8 	participants who have completed six weeks 
456.9 	of job search or are required to perform 
456.10 	work activities and are not meeting the 
456.11 	hourly requirements, and the county or tribe 
456.12 	has determined that the participant would 
456.13 	benefit from working in a supported work 
456.14 	environment.
456.15 	(3) A county or tribe may also be eligible for 
456.16 	funds in order to contract for supplemental 
456.17 	hours of paid work at the participant's child's 
456.18 	place of education, child care location, or the 
456.19 	child's physical or mental health treatment 
456.20 	facility or office. This grant to counties and 
456.21 	tribes is specifically for MFIP participants 
456.22 	who need to work up to five hours more 
456.23 	per week in order to meet the hourly work 
456.24 	requirement, and the participant's employer 
456.25 	cannot or will not offer more hours to the 
456.26 	participant.
456.27 	Work Study. Of the TANF appropriation, 
456.28 	$750,000 each year are to the commissioner 
456.29 	to contract with the Minnesota Office of 
456.30 	Higher Education for the biennium beginning 
456.31 	July 1, 2007, for work study grants under 
456.32 	Minnesota Statutes, section 136A.233, 
456.33 	specifically for low-income individuals who 
456.34 	receive assistance under Minnesota Statutes, 
457.1 	chapter 256J, and for grants to opportunities 
457.2 	industrialization centers.
457.3 	Integrated Service Projects. $2,500,000 
457.4 	in fiscal year 2008 and $2,500,000 in fiscal 
457.5 	year 2009 are appropriated from the TANF 
457.6 	fund to the commissioner to continue to 
457.7 	fund the existing integrated services projects 
457.8 	for MFIP families, and if funding allows, 
457.9 	additional similar projects. 
457.10 	Base Adjustment. The TANF base for fiscal 
457.11 	year 2010 is $115,902,000 and for fiscal year 
457.12 	2011 is $115,152,000.

457.13	(c) MFIP Child Care Assistance Grants

457.14	General
	 74,654,000
	71,951,000

457.15
457.16	(d) Basic Sliding Fee Child Care Assistance 
Grants

457.17	General
	 42,995,000
	45,008,000
	
457.18 	Base Adjustment. The general fund base 
457.19 	is $44,881,000 for fiscal year 2010 and 
457.20 	$44,852,000 for fiscal year 2011.
457.21 	At-Home Infant Care Program. No 
457.22 	funding shall be allocated to or spent on 
457.23 	the at-home infant care program under 
457.24 	Minnesota Statutes, section 119B.035.

457.25	(e) Child Care Development Grants

457.26	General
	 4,390,000
	6,390,000
	
457.27 	Prekindergarten Exploratory Projects. Of 
457.28 	the general fund appropriation, $2,000,000 
457.29 	the first year and $4,000,000 the second 
457.30 	year are for grants to the city of St. Paul, 
457.31 	Hennepin County, and Blue Earth County to 
457.32 	establish scholarship demonstration projects 
457.33 	to be conducted in partnership with the 
458.1 	Minnesota Early Learning Foundation to 
458.2 	promote children's school readiness. This 
458.3 	appropriation is available until June 30, 2009.
458.4 	Child Care Services Grants. Of this 
458.5 	appropriation, $500,000 each year are for 
458.6 	the purpose of providing child care services 
458.7 	grants under Minnesota Statutes, section 
458.8 	119B.21, subdivision 5. This appropriation 
458.9 	is for the 2008-2009 biennium only, and does 
458.10 	not increase the base funding.
458.11 	Early Childhood Professional 
458.12 	Development System. Of this appropriation, 
458.13 	$500,000 each year are for purposes of the 
458.14 	early childhood professional development 
458.15 	system, which increases the quality and 
458.16 	continuum of professional development 
458.17 	opportunities for child care practitioners. 
458.18 	This appropriation is for the 2008-2009 
458.19 	biennium only, and does not increase the 
458.20 	base funding.
458.21 	Base Adjustment. The general fund base 
458.22 	is $1,515,000 for each of fiscal years 2010 
458.23 	and 2011.

458.24	(f) Child Support Enforcement Grants

458.25	General
	11,038,000
	3,705,000
	
458.26 	Child Support Enforcement. $7,333,000 
458.27 	for fiscal year 2008 is to make grants to 
458.28 	counties for child support enforcement 
458.29 	programs to make up for the loss under the 
458.30 	2005 federal Deficit Reduction Act of federal 
458.31 	matching funds for federal incentive funds 
458.32 	passed on to the counties by the state.
458.33 	This appropriation is available until June 30, 
458.34 	2009.

459.1	(g) Children's Services Grants

459.2	Appropriations by Fund
	
459.3	General
	 63,647,000
	71,147,000
	
459.4	Health Care Access
	250,000
	-0-
	
459.5	TANF
	240,000
	340,000
	
459.6 	Grants for Programs Serving Young 
459.7 	Parents. Of the TANF fund appropriation, 
459.8 	$140,000 each year is for a grant to a program 
459.9 	or programs that provide comprehensive 
459.10 	services through a private, nonprofit agency 
459.11 	to young parents in Hennepin County who 
459.12 	have dropped out of school and are receiving 
459.13 	public assistance. The program administrator 
459.14 	shall report annually to the commissioner on 
459.15 	skills development, education, job training, 
459.16 	and job placement outcomes for program 
459.17 	participants.
459.18 	County Allocations for Rate Increases.
459.19 	County Children and Community Services 
459.20 	Act allocations shall be increased by 
459.21 	$197,000 effective October 1, 2007, and 
459.22 	$696,000 effective October 1, 2008, to help 
459.23 	counties pay for the rate adjustments to 
459.24 	day training and habilitation providers for 
459.25 	participants paid by county social service 
459.26 	funds. Notwithstanding the provisions of 
459.27 	Minnesota Statutes, section 256M.40, the 
459.28 	allocation to a county shall be based on 
459.29 	the county's proportion of social services 
459.30 	spending for day training and habilitation 
459.31 	services as determined in the most recent 
459.32 	social services expenditure and grant 
459.33 	reconciliation report.
459.34 	Privatized Adoption Grants. Federal 
459.35 	reimbursement for privatized adoption grant 
460.1 	and foster care recruitment grant expenditures 
460.2 	is appropriated to the commissioner for 
460.3 	adoption grants and foster care and adoption 
460.4 	administrative purposes.
460.5 	Adoption Assistance Incentive Grants.
460.6 	Federal funds available during fiscal year 
460.7 	2008 and fiscal year 2009 for the adoption 
460.8 	incentive grants are appropriated to the 
460.9 	commissioner for these purposes.
460.10 	Adoption Assistance and Relative Custody 
460.11 	Assistance. The commissioner may transfer 
460.12 	unencumbered appropriation balances for 
460.13 	adoption assistance and relative custody 
460.14 	assistance between fiscal years and between 
460.15 	programs.
460.16 	Children's Mental Health Grants. Of the 
460.17 	general fund appropriation, $5,913,000 in 
460.18 	fiscal year 2008 and $6,825,000 in fiscal year 
460.19 	2009 are for children's mental health grants. 
460.20 	The purpose of these grants is to increase and 
460.21 	maintain the state's children's mental health 
460.22 	service capacity, especially for school-based 
460.23 	mental health services. The commissioner 
460.24 	shall require grantees to utilize all available 
460.25 	third party reimbursement sources as a 
460.26 	condition of using state grant funds. At 
460.27 	least 15 percent of these funds shall be 
460.28 	used to encourage efficiencies through early 
460.29 	intervention services. At least another 15 
460.30 	percent shall be used to provide respite care 
460.31 	services for children with severe emotional 
460.32 	disturbance at risk of out-of-home placement.
460.33 	Mental Health Crisis Services. Of the 
460.34 	general fund appropriation, $2,528,000 in 
460.35 	fiscal year 2008 and $2,850,000 in fiscal year 
461.1 	2009 are for statewide funding of children's 
461.2 	mental health crisis services. Providers must 
461.3 	utilize all available funding streams.
461.4 	Children's Mental Health Evidence-Based 
461.5 	and Best Practices. Of the general fund 
461.6 	appropriation, $375,000 in fiscal year 2008 
461.7 	and $750,000 in fiscal year 2009 are for 
461.8 	children's mental health evidence-based and 
461.9 	best practices including, but not limited 
461.10 	to: Adolescent Integrated Dual Diagnosis 
461.11 	Treatment services; school-based mental 
461.12 	health services; co-location of mental 
461.13 	health and physical health care, and; the 
461.14 	use of technological resources to better 
461.15 	inform diagnosis and development of 
461.16 	treatment plan development by mental 
461.17 	health professionals. The commissioner 
461.18 	shall require grantees to utilize all available 
461.19 	third-party reimbursement sources as a 
461.20 	condition of using state grant funds.
461.21 	Culturally Specific Mental Health 
461.22 	Treatment Grants. Of the general fund 
461.23 	appropriation, $75,000 in fiscal year 2008 
461.24 	and $300,000 in fiscal year 2009 are for 
461.25 	children's mental health grants to support 
461.26 	increased availability of mental health 
461.27 	services for persons from cultural and 
461.28 	ethnic minorities within the state. The 
461.29 	commissioner shall use at least 20 percent 
461.30 	of these funds to help members of cultural 
461.31 	and ethnic minority communities to become 
461.32 	qualified mental health professionals and 
461.33 	practitioners. The commissioner shall assist 
461.34 	grantees to meet third-party credentialing 
461.35 	requirements and require them to utilize all 
462.1 	available third-party reimbursement sources 
462.2 	as a condition of using state grant funds.
462.3 	Mental Health Services for Children with 
462.4 	Special Treatment Needs. Of the general 
462.5 	fund appropriation, $50,000 in fiscal year 
462.6 	2008 and $200,000 in fiscal year 2009 are 
462.7 	for children's mental health grants to support 
462.8 	increased availability of mental health 
462.9 	services for children with special treatment 
462.10 	needs. These shall include, but not be limited 
462.11 	to: victims of trauma, including children 
462.12 	subjected to abuse or neglect, veterans and 
462.13 	their families, and refugee populations; 
462.14 	persons with complex treatment needs, such 
462.15 	as eating disorders; and those with low 
462.16 	incidence disorders.
462.17 	MFIP and Children's Mental Health 
462.18 	Pilot Project. Of the TANF appropriation, 
462.19 	$100,000 in fiscal year 2008 and $200,000 
462.20 	in fiscal year 2009 are to fund the MFIP 
462.21 	and children's mental health pilot project. 
462.22 	Of these amounts, up to $100,000 may be 
462.23 	expended on evaluation of this pilot.
462.24 	Prenatal Alcohol or Drug Use. Of the 
462.25 	general fund appropriation, $75,000 each 
462.26 	year is to award grants beginning July 1, 
462.27 	2007, to programs that provide services 
462.28 	under Minnesota Statutes, section 254A.171, 
462.29 	in Pine, Kanabec, and Carlton Counties. This 
462.30 	appropriation shall become part of the base 
462.31 	appropriation.
462.32 	Base Adjustment. The general fund base 
462.33 	is $62,572,000 in fiscal year 2010 and 
462.34 	$62,575,000 in fiscal year 2011.

462.35	(h) Children and Community Services Grants

463.1	General
	 101,369,000
	69,208,000
	
463.2 	Base Adjustment. The general fund base 
463.3 	is $69,274,000 in each of fiscal years 2010 
463.4 	and 2011.
463.5 	Targeted Case Management Temporary 
463.6 	Funding. (a) Of the general fund 
463.7 	appropriation, $32,667,000 in fiscal year 
463.8 	2008 is transferred to the targeted case 
463.9 	management contingency reserve account in 
463.10 	the general fund to be allocated to counties 
463.11 	and tribes affected by reductions in targeted 
463.12 	case management federal Medicaid revenue 
463.13 	as a result of the provisions in the federal 
463.14 	Deficit Reduction Act of 2005, Public Law 
463.15 	109-171.
463.16 	(b) Contingent upon (1) publication by the 
463.17 	federal Centers for Medicare and Medicaid 
463.18 	Services of final regulations implementing 
463.19 	the targeted case management provisions 
463.20 	of the federal Deficit Reduction Act of 
463.21 	2005, Public Law 109-171, or (2) the 
463.22 	issuance of a finding by the Centers for 
463.23 	Medicare and Medicaid Services of federal 
463.24 	Medicaid overpayments for targeted case 
463.25 	management expenditures, up to $32,667,000 
463.26 	is appropriated to the commissioner of human 
463.27 	services. Prior to distribution of funds, the 
463.28 	commissioner shall estimate and certify the 
463.29 	amount by which the federal regulations or 
463.30 	federal disallowance will reduce targeted 
463.31 	case management Medicaid revenue over the 
463.32 	2008-2009 biennium.
463.33 	(c) Within 60 days of a contingency described 
463.34 	in paragraph (b), the commissioner shall 
463.35 	distribute the grants proportionate to each 
464.1 	affected county or tribe's targeted case 
464.2 	management federal earnings for calendar 
464.3 	year 2005, not to exceed the lower of (1) the 
464.4 	amount of the estimated reduction in federal 
464.5 	revenue or (2) $32,667,000.
464.6 	(d) These funds are available in either year of 
464.7 	the biennium. Counties and tribes shall use 
464.8 	these funds to pay for social service-related 
464.9 	costs, but the funds are not subject to 
464.10 	provisions of the Children and Community 
464.11 	Services Act grant under Minnesota Statutes, 
464.12 	chapter 256M.
464.13 	(e) This appropriation shall be available to 
464.14 	pay counties and tribes for expenses incurred 
464.15 	on or after July 1, 2007. The appropriation 
464.16 	shall be available until expended.

464.17	(i) General Assistance Grants

464.18	General
	37,876,000
	38,253,000
	
464.19 	General Assistance Standard. The 
464.20 	commissioner shall set the monthly standard 
464.21 	of assistance for general assistance units 
464.22 	consisting of an adult recipient who is 
464.23 	childless and unmarried or living apart 
464.24 	from parents or a legal guardian at $203. 
464.25 	The commissioner may reduce this amount 
464.26 	according to Laws 1997, chapter 85, article 
464.27 	3, section 54.
464.28 	Emergency General Assistance. The 
464.29 	amount appropriated for emergency general 
464.30 	assistance funds is limited to no more 
464.31 	than $7,889,812 in fiscal year 2008 and 
464.32 	$7,889,812 in fiscal year 2009. Funds 
464.33 	to counties must be allocated by the 
464.34 	commissioner using the allocation method 
465.1 	specified in Minnesota Statutes, section 
465.2 	256D.06.

465.3	(j) Minnesota Supplemental Aid Grants

465.4	General
	30,505,000
	30,812,000
	
465.5 	Emergency Minnesota Supplemental 
465.6 	Aid Funds. The amount appropriated for 
465.7 	emergency Minnesota supplemental aid 
465.8 	funds is limited to no more than $1,100,000 
465.9 	in fiscal year 2008 and $1,100,000 in fiscal 
465.10 	year 2009. Funds to counties must be 
465.11 	allocated by the commissioner using the 
465.12 	allocation method specified in Minnesota 
465.13 	Statutes, section 256D.46.

465.14	(k) Group Residential Housing Grants

465.15	General
	 91,069,000
	98,671,000
	
465.16 	People Incorporated. Of the general fund 
465.17 	appropriation, $460,000 each year is to 
465.18 	augment community support and mental 
465.19 	health services provided to individuals 
465.20 	residing in facilities under Minnesota 
465.21 	Statutes, section 256I.05, subdivision 1m.

465.22
465.23	(l) Other Children and Economic Assistance 
Grants

465.24	General
	 20,183,000
	16,333,000
	
465.25	Federal TANF
	1,500,000
	1,500,000
	
465.26 	Base Adjustment. The general fund base 
465.27 	shall be $16,033,000 in fiscal year 2010 and 
465.28 	$15,533,000 in fiscal year 2011. The TANF 
465.29 	base shall be $1,500,000 in fiscal year 2010 
465.30 	and $1,181,000 in fiscal year 2011.
465.31 	Homeless and Runaway Youth. Of the 
465.32 	general fund appropriation, $500,000 each 
465.33 	year are for the Runaway and Homeless 
465.34 	Youth Act under Minnesota Statutes, section 
466.1 	256K.45. Funds shall be spent in each area 
466.2 	of the continuum of care to ensure that 
466.3 	programs are meeting the greatest need. This 
466.4 	is a onetime appropriation. 
466.5 	Long-Term Homelessness. Of the general 
466.6 	fund appropriation, $1,500,000 each year are 
466.7 	for implementation of programs to address 
466.8 	long-term homelessness. This is a onetime 
466.9 	appropriation.
466.10 	Minnesota Community Action Grants. (a) 
466.11 	Of the general fund appropriation, $250,000 
466.12 	each year is for the purposes of Minnesota 
466.13 	community action grants under Minnesota 
466.14 	Statutes, sections 256E.30 to 256E.32. This 
466.15 	is a onetime appropriation. 
466.16 	(b) Of the TANF appropriation, $1,500,000 
466.17 	each year is for community action agencies 
466.18 	for auto repairs, auto loans, and auto purchase 
466.19 	grants to individuals who are eligible to 
466.20 	receive benefits under Minnesota Statutes, 
466.21 	chapter 256J, or who have lost eligibility 
466.22 	for benefits under Minnesota Statutes, 
466.23 	chapter 256J, due to earnings in the prior 12 
466.24 	months. Base level funding for this activity 
466.25 	shall be $1,500,000 in fiscal year 2010 and 
466.26 	$1,181,000 in fiscal year 2011.
466.27 	(c) Money appropriated under paragraphs (a) 
466.28 	and (b) that is not spent in the first year does 
466.29 	not cancel but is available for the second 
466.30 	year.

466.31
466.32	Subd. 5.Children and Economic Assistance 
Management
 					
466.33 	The amounts that may be spent from the 
466.34 	appropriation for each purpose are as follows:

467.1
467.2	(a) Children and Economic Assistance 
Administration

467.3	Appropriations by Fund
	
467.4	General
	 9,326,000
	9,381,000
	
467.5	Federal TANF
	1,196,000
	1,196,000
	
467.6 	Base Adjustment. The general fund base is 
467.7 	$9,343,000 in each of the fiscal years 2010 
467.8 	and 2011.

467.9467.10
	(b) Children and Economic Assistance 
Operations

467.11	Appropriations by Fund
	
467.12	General
	35,667,000
	35,989,000
	
467.13	Health Care Access
	350,000
	361,000
	
467.14 	Financial Institution Data Match and 
467.15 	Payment of Fees. The commissioner is 
467.16 	authorized to allocate up to $310,000 each 
467.17 	year in fiscal years 2008 and 2009 from the 
467.18 	PRISM special revenue account to make 
467.19 	payments to financial institutions in exchange 
467.20 	for performing data matches between account 
467.21 	information held by financial institutions 
467.22 	and the public authority's database of child 
467.23 	support obligors as authorized by Minnesota 
467.24 	Statutes, section 13B.06, subdivision 7.
467.25 	Base Adjustment. The general fund base 
467.26 	is $35,967,000 in each of fiscal years 2010 
467.27 	and 2011.

467.28	Subd. 6.Basic Health Care Grants
 					
467.29 	The amounts that may be spent from the 
467.30 	appropriation for each purpose are as follows:

467.31	(a) MinnesotaCare Grants

467.32	Health Care Access
	 389,760,000
	458,401,000
	
467.33 	HealthMatch Delay. Of this appropriation, 
467.34 	$2,560,000 the first year and $21,735,000 
468.1 	the second year are for the MinnesotaCare 
468.2 	program costs related to a seven-month 
468.3 	delay in implementation of the HealthMatch 
468.4 	program.
468.5 	Health Match Enrollment Shift. In fiscal 
468.6 	year 2009, $6,178,000 shall be transferred 
468.7 	from the health care access fund to the 
468.8 	general fund to pay for the Health Match 
468.9 	program-related enrollment shift. In the 
468.10 	event no systematic enrollment shift of 
468.11 	MinnesotaCare families and children to 
468.12 	medical assistance occurs prior to June 30, 
468.13 	2009, except as required under Minnesota 
468.14 	Statutes, section 256L.04, subdivision 8, this 
468.15 	transfer shall not occur.

468.16
468.17	(b) MA Basic Health Care - Families and 
Children

468.18	Appropriations by Fund
	
468.19	General
	 739,957,000
	838,874,000
	
468.20	Health Care Access
	1,672,000
	-0-

468.21
468.22	(c) MA Basic Health Care - Elderly and 
Disabled

468.23	General
	 995,560,000
	1,101,390,000
	
468.24 	Treatment Foster Care Services Delay. (a) 
468.25 	Notwithstanding Minnesota Statutes, section 
468.26 	256B.0625, subdivision 47, effective July 
468.27 	1, 2009, and subject to federal approval, 
468.28 	medical assistance covers treatment foster 
468.29 	care services according to Minnesota 
468.30 	Statutes, section 256B.0946.
468.31 	(b) Of the general fund savings that result 
468.32 	from the delayed effective date in paragraph 
468.33 	(a):
468.34 	(1) The commissioner shall present to the 
468.35 	legislature, by February 1, 2008, a report 
469.1 	and recommendations on establishing a 
469.2 	health insurance exchange that would 
469.3 	provide individuals with greater access, 
469.4 	choice, portability, and affordability of 
469.5 	health insurance products.  The report must 
469.6 	evaluate, identify options, and present 
469.7 	recommendations, on:
469.8 	(i) whether a health insurance exchange 
469.9 	would provide individuals with greater 
469.10 	access, choice, portability, and affordability 
469.11 	of health care products;
469.12 	(ii) the duties and powers of the exchange;
469.13 	(iii) the use of the exchange to receive and 
469.14 	process employee premiums on a pretax 
469.15 	basis through section 125 plans;
469.16 	(iv) eligibility criteria that enrollees and 
469.17 	health plan companies must meet to 
469.18 	participate in the exchange;
469.19 	(v) the types of health plans to be offered 
469.20 	through the exchange, and the extent to 
469.21 	which these plans should be available for 
469.22 	purchase only through the exchange;
469.23 	(vi) loss ratio requirements for health plans 
469.24 	offered through the exchange;
469.25 	(vii) the extent to which the operation of the 
469.26 	exchange will lower the cost of health care 
469.27 	insurance coverage;
469.28 	(viii) estimates of administrative costs of 
469.29 	operating the exchange, and methods for 
469.30 	funding these administrative costs; and 
469.31 	(iv) other topics relevant to the design and 
469.32 	operation of the exchange if its establishment 
469.33 	is recommended.
470.1 	(2) $375,000 each year are for the family, 
470.2 	friend, and neighbor grant program in article 
470.3 	1, section 94. Any balance in the first year 
470.4 	does not cancel but is available in the second 
470.5 	year. This appropriation is for the 2008-2009 
470.6 	biennium only, and does not increase the 
470.7 	base funding.
470.8 	(3) $300,000 each year from the general fund 
470.9 	and $150,000 each year from the TANF fund 
470.10 	are to the commissioner for the purposes 
470.11 	of a program in Ramsey County that 
470.12 	provides early intervention efforts designed 
470.13 	to discourage pregnant women from using 
470.14 	alcohol and illegal drugs. The appropriation 
470.15 	shall not become part of base level funding 
470.16 	and is available until spent.
470.17 	(4) $750,000 the first year is for transitional 
470.18 	housing programs under Minnesota Statutes, 
470.19 	section 256E.33. Up to ten percent of this 
470.20 	appropriation may be used for housing and 
470.21 	services which extend beyond 24 months. 
470.22 	$600,000 the first year is for emergency 
470.23 	services grants under Laws 1997, chapter 
470.24 	162, article 3, section 7.
470.25 	(5) $50,000 each year is for a grant to HOME 
470.26 	Line for the tenant hotline services program. 
470.27 	This is a onetime appropriation.
470.28 	(6) $60,000 in fiscal year 2008 is to 
470.29 	the commissioner to contract with a 
470.30 	Minnesota-based, nonprofit quality 
470.31 	improvement organization that collaborates 
470.32 	with providers and consumers in health 
470.33 	improvement activities, for the purpose 
470.34 	of conducting an independent analysis 
470.35 	of the reimbursement methodologies for 
471.1 	home health services provided to enrollees 
471.2 	in the Minnesota senior health options 
471.3 	and Minnesota disability health options 
471.4 	programs. The analysis of reimbursement 
471.5 	methodologies shall include, at a minimum, 
471.6 	a review of:
471.7 	(i) any limitations on flexibility in services or 
471.8 	technology for the home health provider;
471.9 	(ii) the Medicare program reimbursement 
471.10 	methodologies, including possible 
471.11 	alternatives, and Medicare benefits;
471.12 	(iii) potential access issues raised by current 
471.13 	reimbursement methodologies; and
471.14 	(iv) incentives, including episodic care 
471.15 	reimbursement methodologies, to promote 
471.16 	best practices and achieve identified clinical 
471.17 	outcomes.
471.18 	The analysis and any supporting 
471.19 	recommendations shall be presented 
471.20 	to the commissioner by December 1, 2007, 
471.21 	and to the chairs of the appropriate legislative 
471.22 	committees by December 15, 2007. In no 
471.23 	event shall the study disclose any specific 
471.24 	reimbursement amount or methodologies 
471.25 	attributable to an individual health carrier.
471.26 	In conducting its analysis, the organization 
471.27 	described in paragraph (a) shall consult with 
471.28 	the commissioner, the Minnesota Home Care 
471.29 	Association, managed care organizations, 
471.30 	and other interested home health entities and 
471.31 	advocates, and shall convene the parties to 
471.32 	discuss pertinent issues.
471.33 	(7) $50,000 the first year is to conduct 
471.34 	a feasibility study of and to predesign a 
472.1 	Native American juvenile treatment center 
472.2 	on or near the White Earth Reservation. 
472.3 	The facility must house and treat Native 
472.4 	American juveniles and provide culturally 
472.5 	specific programming to juveniles placed in 
472.6 	the treatment center. The commissioner may 
472.7 	contract with parties who have experience 
472.8 	in the design and construction of juvenile 
472.9 	treatment centers to assist in the feasibility 
472.10 	study and predesign. On or before January 
472.11 	15, 2008, the commissioner shall present 
472.12 	the results of the feasibility study and the 
472.13 	predesign of the facility to the chairs of house 
472.14 	of representatives and senate committees 
472.15 	having jurisdiction over human services 
472.16 	finance, public safety finance, and capital 
472.17 	investment.
472.18 	(8) $200,000 in fiscal year 2008 and $200,000 
472.19 	in fiscal year 2009 are to develop a statewide 
472.20 	quality assurance and improvement system 
472.21 	under Minnesota Statutes, section 256B.096, 
472.22 	for persons receiving disability services. 
472.23 	Any unspent portion of the appropriation 
472.24 	for the first year shall not cancel but shall 
472.25 	be available for the second year. These are 
472.26 	onetime appropriations.
472.27 	(9) $200,000 is to the commissioner to be 
472.28 	available until June 30, 2009, to make a 
472.29 	grant to Advocating Change Together for the 
472.30 	purposes of the Remembering With Dignity 
472.31 	project. As part of the Remembering With 
472.32 	Dignity project, the grant recipient shall:
472.33 	(i) conduct necessary research on persons 
472.34 	buried in state cemeteries who were residents 
472.35 	of state hospitals or regional treatment 
473.1 	centers and buried in numbered or unmarked 
473.2 	graves;
473.3 	(ii) purchase and install headstones that are 
473.4 	properly inscribed with their names on the 
473.5 	graves of those persons; and
473.6 	(iii) collaborate with community groups 
473.7 	and state and local government agencies to 
473.8 	build community involvement and public 
473.9 	awareness, ensure public access to the 
473.10 	graves, and ensure appropriate perpetual 
473.11 	maintenance of state cemeteries.
473.12 	(10) $500,000 each year are to fund 
473.13 	the Regional Children's Mental Health 
473.14 	Initiative pilot project. This is a onetime 
473.15 	appropriation. This paragraph does not apply 
473.16 	to a radiation therapy facility that is being 
473.17 	built attached to a community hospital in 
473.18 	Wright County and meets the following 
473.19 	conditions prior to August 1, 2007: the 
473.20 	capital expenditure report required under 
473.21 	Minnesota Statutes, section 62J.17, has been 
473.22 	filed with the commissioner of health; a 
473.23 	timely construction schedule is developed, 
473.24 	stipulating dates for beginning, achieving 
473.25 	various stages, and completing construction; 
473.26 	and all zoning and building permits applied 
473.27 	for.
473.28 	Provider-Directed Care Coordination. In 
473.29 	addition to medical assistance reimbursement 
473.30 	under Minnesota Statutes, sections 
473.31 	256B.0625 and 256B.76, clinics participating 
473.32 	in provider-directed care coordination under 
473.33 	Minnesota Statutes, section 256B.0625, also 
473.34 	receive a monthly payment per client when 
473.35 	the clinic serves an eligible client. The 
474.1 	payments across the program must average 
474.2 	$50 per month per client.

474.3	(d) General Assistance Medical Care Grants

474.4	General
	 238,822,000
	251,412,000

474.5	(e) Other Health Care Grants

474.6	General
	421,000
	921,000
	
474.7	Health Care Access
	850,000
	900,000
	
474.8 	Community-Based Health Care 
474.9 	Demonstration Project. Of the general 
474.10 	fund appropriation, $212,000 each year is 
474.11 	to be transferred to the commissioner of 
474.12 	health for the demonstration project grant 
474.13 	described in Minnesota Statutes, section 
474.14 	62Q.80, subdivision 1a. This appropriation 
474.15 	shall remain part of base level funding until 
474.16 	June 30, 2012. Notwithstanding any contrary 
474.17 	provision in this article, this rider expires 
474.18 	July 1, 2012.
474.19 	Care Coordination Pilot Projects. Of 
474.20 	the health care access fund appropriation, 
474.21 	$881,000 in fiscal year 2009 is for the health 
474.22 	care pilot projects for children and adults 
474.23 	with complex health care needs. Base level 
474.24 	funding for this program is $878,000 in 2010 
474.25 	and $0 in 2011.
474.26 	Patient Incentive Programs. Of the general 
474.27 	fund appropriation, $500,000 in fiscal year 
474.28 	2009 is for patient incentive programs.
474.29 	Base Adjustment. The health care access 
474.30 	fund base is $900,000 in fiscal year 2010 and 
474.31 	$150,000 in fiscal year 2011.
474.32 	Oral Health Care Innovations Grants. (a) 
474.33 	Of the health care access fund appropriation, 
474.34 	$400,000 for the fiscal year beginning July 1, 
475.1 	2007, is to award competitive oral health care 
475.2 	innovations grants to organizations described 
475.3 	in Minnesota Statutes, section 256B.76, 
475.4 	paragraph (b), clause (4), or coalitions of 
475.5 	such organizations, providing access to oral 
475.6 	health services for low-income and uninsured 
475.7 	persons. The commissioner shall award one 
475.8 	grant for a project to develop a nonprofit 
475.9 	dental clinic serving public program 
475.10 	recipients and uninsured persons in Beltrami 
475.11 	County; one grant for the maintenance of 
475.12 	nonprofit dental clinics providing oral health 
475.13 	care services to children ages birth to 18 in 
475.14 	St. Louis County; and one grant for the bright 
475.15 	smiles program to increase access to oral 
475.16 	health care for low-income and immigrant 
475.17 	children, ages birth to five years, and their 
475.18 	families in underserved areas in Minneapolis. 
475.19 	(b) This grant shall not become part of base 
475.20 	level funding.
475.21 	State Health Policies Grant. Of the health 
475.22 	care access fund appropriation, $300,000 in 
475.23 	fiscal year 2008 is to provide a grant to a 
475.24 	research center associated with a safety net 
475.25 	hospital and county-affiliated health system 
475.26 	to develop the capabilities necessary for 
475.27 	evaluating the effects of changes in state 
475.28 	health policies on low-income and uninsured 
475.29 	individuals, including the impact on state 
475.30 	health care program costs, health outcomes, 
475.31 	cost-shifting to different units and levels 
475.32 	of government, and utilization patterns 
475.33 	including use of emergency room care and 
475.34 	hospitalization rates. The center shall report 
475.35 	on the use of this money by December 1, 
475.36 	2008, to the chairs of the senate and house 
476.1 	of representatives committees with relevant 
476.2 	jurisdiction.

476.3	Subd. 7.Health Care Management
 					
476.4 	The amounts that may be spent from the 
476.5 	appropriation for each purpose are as follows:

476.6	(a) Health Care Policy Administration

476.7	Appropriations by Fund
	
476.8	General
	 10,954,000
	10,936,000
	
476.9	Health Care Access
	 1,788,000
	2,730,000
	
476.10 	Minnesota Senior Health Options 
476.11 	Reimbursement. Federal administrative 
476.12 	reimbursement resulting from the Minnesota 
476.13 	senior health options project is appropriated 
476.14 	to the commissioner for this activity.
476.15 	Disproportionate Share Hospital Payment 
476.16 	Formulas. The commissioner is prohibited 
476.17 	from altering formulas for disbursement of 
476.18 	disproportionate share hospital funds under 
476.19 	the disproportionate share hospital program 
476.20 	by rule, bulletin, or any other administrative 
476.21 	method without explicit legislative authority.
476.22 	Utilization Review. Federal administrative 
476.23 	reimbursement resulting from prior 
476.24 	authorization and inpatient admission 
476.25 	certification by a professional review 
476.26 	organization is dedicated to the commissioner 
476.27 	for these purposes. A portion of these funds 
476.28 	must be used for activities to decrease 
476.29 	unnecessary pharmaceutical costs in medical 
476.30 	assistance.
476.31 	Base Adjustment. The health care access 
476.32 	fund base is $3,763,000 in fiscal year 2010 
476.33 	and $3,396,000 in fiscal year 2011, for health 
476.34 	care administration.
477.1 	Base Adjustment. The general fund base 
477.2 	is $10,701,000 in fiscal year 2010 and 
477.3 	$10,520,00 in fiscal year 2011.

477.4	(b) Health Care Operations

477.5	Appropriations by Fund
	
477.6	General
	 21,241,000
	21,874,000
	
477.7	Health Care Access
	 22,965,000
	21,672,000
	
477.8 	Base Adjustment. The general fund base 
477.9 	is $21,839,000 in each of fiscal years 2010 
477.10 	and 2011. The health care access fund 
477.11 	base is $21,697,000 in fiscal year 2010 and 
477.12 	$21,373,000 in fiscal year 2011.
477.13 	Outreach Funding. Of these appropriations, 
477.14 	the following amounts are to the 
477.15 	commissioner for the Minnesota health care 
477.16 	outreach program under Minnesota Statutes, 
477.17 	section 256.962:
477.18 	(1) $950,000 the first year and $1,000,000 
477.19 	the second year from the health care access 
477.20 	fund for a statewide outreach campaign 
477.21 	under Minnesota Statutes, section 256.962, 
477.22 	subdivision 1;
477.23 	(2) $350,000 the first year and $500,000 
477.24 	the second year from the general fund and 
477.25 	$150,000 the first year and $250,000 the 
477.26 	second year from the health care access 
477.27 	fund are for the incentive program under 
477.28 	Minnesota Statutes, section 256.962, 
477.29 	subdivision 5. For the biennium beginning 
477.30 	July 1, 2009, base level funding for this 
477.31 	activity shall be $450,000 from the general 
477.32 	fund and $200,000 from the health care 
477.33 	access fund; and
477.34 	(3) $150,000 each year from the health 
477.35 	care access fund appropriation for other 
478.1 	health care grants for a grant to a nonprofit 
478.2 	organization to provide a statewide toll-free 
478.3 	number under Minnesota Statutes, section 
478.4 	256.962, subdivision 4.

478.5	Subd. 8.Continuing Care Grants
 					
478.6 	The amounts that may be spent from the 
478.7 	appropriation for each purpose are as follows: 

478.8	(a) Aging and Adult Services Grants

478.9	General
	 14,357,000
	14,727,000
	
478.10 	Information and Assistance 
478.11 	Reimbursement. Federal administrative 
478.12 	reimbursement obtained from information 
478.13 	and assistance services provided by the 
478.14 	Senior LinkAge Line to people who are 
478.15 	identified as eligible for medical assistance 
478.16 	is appropriated to the commissioner for this 
478.17 	activity.
478.18 	Senior Companion Program. Of this 
478.19 	appropriation, $42,000 each year is for the 
478.20 	senior companion program under Minnesota 
478.21 	Statutes, section 256.977.
478.22 	Volunteer Senior Citizens. Of this 
478.23 	appropriation, $42,000 each year is for the 
478.24 	volunteer programs for retired senior citizens 
478.25 	under Minnesota Statutes, section 256.9753.
478.26 	Foster Grandparent Program. Of this 
478.27 	appropriation, $41,000 each year is for the 
478.28 	foster grandparent program in Minnesota 
478.29 	Statutes, section 256.976.
478.30 	Senior Nutrition. Of this appropriation, 
478.31 	$125,000 each year is for the senior nutrition 
478.32 	programs under Minnesota Statutes, section 
478.33 	256.9752. The commissioner shall give 
478.34 	priority to increase services to: (1) persons 
479.1 	facing language or cultural barriers, (2) 
479.2 	persons with special diets, (3) persons 
479.3 	living in isolated rural areas, and (4) other 
479.4 	hard-to-serve populations.
479.5 	Base Adjustment. The general fund base 
479.6 	is $14,774,000 in fiscal year 2010 and 
479.7 	$14,899,000 in fiscal year 2011.

479.8	(b) Alternative Care Grants

479.9	General
	49,858,000
	51,758,000
	
479.10 	Alternative Care Transfer. Any money 
479.11 	allocated to the alternative care program that 
479.12 	is not spent for the purposes indicated does 
479.13 	not cancel but is transferred to the medical 
479.14 	assistance account.
479.15 	Base Adjustment. The general fund 
479.16 	base is $52,120,000 in fiscal year 2010 
479.17 	and $52,277,000 in fiscal year 2011 for 
479.18 	alternative care grants.

479.19
479.20	(c) Medical Assistance Grants - Long-Term 
Care Facilities

479.21	General
	496,920,000
	499,556,000
	
479.22 	Long-Term Care Consultation Funding 
479.23 	Increase. For the rate year beginning 
479.24 	October 1, 2008, the county long-term 
479.25 	care consultation allocations in Minnesota 
479.26 	Statutes, section 256B.0911, subdivision 
479.27 	6, must be increased based on the number 
479.28 	of transitional long-term care consultation 
479.29 	visits projected by the commissioner in 
479.30 	each county. For the rate year beginning 
479.31 	October 1, 2009, final allocations must be 
479.32 	determined based on the average between 
479.33 	the actual number of transitional long-term 
479.34 	care visits that were conducted in the prior 
480.1 	12-month period and the projected number 
480.2 	of consultations that will be provided in 
480.3 	the rate year beginning October 1, 2009. 
480.4 	Notwithstanding any contrary provision in 
480.5 	this article, this paragraph expires June 30, 
480.6 	2010.
480.7 	Nursing Facility Sprinkler Systems. Of 
480.8 	the general fund appropriation, $2,500,000 
480.9 	the first year is to reimburse the costs of 
480.10 	nursing facility sprinkler systems under 
480.11 	Minnesota Statutes, section 256B.434, 
480.12 	subdivision 4, paragraph (e). Any portion of 
480.13 	this appropriation not spent in the first year 
480.14 	shall not cancel but shall be available for the 
480.15 	second year.
480.16 	Nursing Home Moratorium Exceptions.
480.17 	During fiscal year 2008, the commissioner of 
480.18 	health may approve moratorium exception 
480.19 	projects under Minnesota Statutes, section 
480.20 	144A.073, for which the full annualized 
480.21 	state share of medical assistance costs does 
480.22 	not exceed $3,000,000. During fiscal year 
480.23 	2009, the commissioner of health may 
480.24 	approve moratorium exception projects 
480.25 	under Minnesota Statutes, section 144A.073, 
480.26 	for which the full annualized state share of 
480.27 	medical assistance costs does not exceed 
480.28 	$3,000,000 less the amount approved during 
480.29 	the first year. Priority shall be given to 
480.30 	proposals that entail:
480.31 	(1) complete building replacement in 
480.32 	conjunction with reductions in the number of 
480.33 	beds in a county, with greater weight given 
480.34 	to projects in counties with a greater than 
480.35 	average number of beds per 1,000 elderly;
481.1 	(2) technology improvements;
481.2 	(3) improvements in life safety;
481.3 	(4) construction of nursing facilities that are 
481.4 	part of senior services campuses; and
481.5 	(5) improvements in the work environment.

481.6
481.7	(d) Medical Assistance Grants - Long-Term 
Care Waivers and Home Care Grants

481.8	General
	 957,020,000
	1,075,074,000
	
481.9 	County CADI allocation adjustment.
481.10 	(1) The commissioner shall adjust 2007 
481.11 	home and community-based allocations 
481.12 	under Minnesota Statutes, section 256B.49, 
481.13 	to qualifying counties that transferred 
481.14 	persons to the community alternatives for 
481.15 	disabled individuals (CADI) waiver program 
481.16 	under Laws 2006, chapter 282, article 20, 
481.17 	section 35. The adjustment shall reflect 
481.18 	the amount that county-authorized funding 
481.19 	for CADI waiver services exceeded the 
481.20 	allowable amount as shown in the Medicaid 
481.21 	Management Information System (MMIS) 
481.22 	on March 1, 2007.
481.23 	(2) A county that may qualify under 
481.24 	paragraph (1) shall apply to the commissioner 
481.25 	by June 10, 2007. Following a review of the 
481.26 	county request and the MMIS documentation, 
481.27 	the commissioner shall adjust the county 
481.28 	allocation, as appropriate, by June 25, 2007.
481.29 	(3) The amounts provided to a county under 
481.30 	this section shall become part of the county's 
481.31 	base level state allocation for the CADI 
481.32 	waiver for the biennium beginning July 1, 
481.33 	2007.
482.1 	(4) This rider is effective the day following 
482.2 	final enactment.

482.3	(e) Mental Health Grants

482.4	Appropriations by Fund
	
482.5	General
	 59,632,000
	62,217,000
	
482.6	Health Care Access
	750,000
	750,000
	
482.7	Lottery Prize
	1,933,000
	1,633,000
	
482.8 	Mental Health Crisis Services. Of the 
482.9 	general fund appropriation, $2,528,000 in 
482.10 	fiscal year 2008 and $3,278,000 in fiscal 
482.11 	year 2009 are for statewide funding of adult 
482.12 	mental health crisis services.  Providers must 
482.13 	utilize all available funding streams.
482.14 	Adult Mental Health Evidence-Based 
482.15 	and Best Practices. Of the general fund 
482.16 	appropriation, $375,000 in fiscal year 2008 
482.17 	and $750,000 in fiscal year 2009 are for 
482.18 	adult mental health evidence-based and 
482.19 	best practices including, but not limited 
482.20 	to, Assertive Community Treatment and 
482.21 	Integrated Dual Diagnosis Treatment 
482.22 	services.  The commissioner shall require 
482.23 	grantees to utilize all available third-party 
482.24 	reimbursement sources as a condition of 
482.25 	using state grant funds.
482.26 	Culturally Specific Mental Health 
482.27 	Treatment Grants. Of the general fund 
482.28 	appropriation, $75,000 in fiscal year 2008 
482.29 	and $300,000 in fiscal year 2009 are for adult 
482.30 	mental health grants to support increased 
482.31 	availability of mental health services for 
482.32 	persons from cultural and ethnic minorities 
482.33 	within the state. The commissioner shall use 
482.34 	at least 20 percent of these funds to help 
482.35 	members of cultural and ethnic minority 
483.1 	communities to become qualified mental 
483.2 	health professionals and practitioners. The 
483.3 	commissioner shall assist grantees to meet 
483.4 	third-party credentialing requirements 
483.5 	and require them to utilize all available 
483.6 	third-party reimbursement sources as a 
483.7 	condition of using state grant funds.
483.8 	Mental Health Services for Adults with 
483.9 	Special Treatment Needs. Of the general 
483.10 	fund appropriation, $50,000 in fiscal year 
483.11 	2008 and $200,000 in fiscal year 2009 are 
483.12 	for adult mental health grants to support 
483.13 	increased availability of mental health 
483.14 	services for adults with special treatment 
483.15 	needs. These adults shall include, but not 
483.16 	be limited to: victims of trauma, including 
483.17 	persons subjected to abuse or neglect, 
483.18 	veterans and their families, and refugee 
483.19 	populations; person's with complex treatment 
483.20 	needs, such as eating disorders; and those 
483.21 	with low incidence disorders.
483.22 	Supportive Housing Services for Adults 
483.23 	with Mental Illness. Of the general fund 
483.24 	appropriation, $1,750,000 in fiscal year 
483.25 	2008 and $1,500,000 in fiscal year 2009 are 
483.26 	for adult mental health grants to support 
483.27 	increased availability of a range of housing 
483.28 	options with supports for persons with 
483.29 	serious mental illness.
483.30 	National Council on Problem Gambling.
483.31 	(1) Of the appropriation from the lottery prize 
483.32 	fund, $225,000 each year is for a grant to 
483.33 	the state affiliate recognized by the National 
483.34 	Council on Problem Gambling. The affiliate 
483.35 	must provide services to increase public 
484.1 	awareness of problem gambling, education, 
484.2 	and training for individuals and organizations 
484.3 	providing effective treatment services to 
484.4 	problem gamblers and their families, and 
484.5 	research relating to problem gambling. These 
484.6 	services must be complementary to and not 
484.7 	duplicative of the services provided through 
484.8 	the problem gambling program administered 
484.9 	by the commissioner of human services. This 
484.10 	grant does not prevent the commissioner 
484.11 	from regular monitoring and oversight of the 
484.12 	grant or the ability to reallocate the funds to 
484.13 	other services within the problem gambling 
484.14 	program for nonperformance of duties by 
484.15 	the grantee.
484.16 	(2) Of this appropriation, $100,000 in 
484.17 	fiscal year 2008 and $100,000 in fiscal year 
484.18 	2009 are contingent on the contribution 
484.19 	of nonstate matching funds. Matching 
484.20 	funds may be either cash or qualifying 
484.21 	in-kind contributions. The commissioner of 
484.22 	finance may disburse the state portion of the 
484.23 	matching funds in increments of $25,000 
484.24 	upon receipt of a commitment for an equal 
484.25 	amount of matching nonstate funds. The 
484.26 	general fund base shall be $100,000 in fiscal 
484.27 	year 2010 and $100,000 in fiscal year 2011.
484.28 	(3) Of the lottery prize fund appropriation, 
484.29 	$100,000 in fiscal year 2008 is for a grant 
484.30 	or grants to be awarded competitively 
484.31 	to develop programs and services for 
484.32 	problem gambling treatment, prevention, 
484.33 	and education in immigrant communities. 
484.34 	This appropriation is available until June 
484.35 	30, 2009, at which time the project must 
484.36 	be completed and final products delivered, 
485.1 	unless an earlier completion date is specified 
485.2 	in the work program.
485.3 	Compulsive Gambling. Of the lottery prize 
485.4 	fund appropriation, $300,000 in fiscal year 
485.5 	2008 and $100,000 in fiscal year 2009 are for 
485.6 	purposes of compulsive gambling education, 
485.7 	assessment, and treatment under Minnesota 
485.8 	Statutes, section 245.98.
485.9 	Compulsive Gambling Study. Of the lottery 
485.10 	prize fund appropriation, $100,000 in fiscal 
485.11 	year 2008 is to continue the study currently 
485.12 	being done on compulsive gambling 
485.13 	treatment effectiveness and long-term effects 
485.14 	of gambling.
485.15 	Base Adjustment. The general fund base 
485.16 	is $59,460,000 in each of fiscal years 2010 
485.17 	and 2011.
485.18 	Base Adjustment. The lottery prize fund 
485.19 	base is $1,508,000 in each of fiscal years 
485.20 	2010 and 2011.

485.21	(f) Deaf and Hard-of-Hearing Grants

485.22	General
	 1,730,000
	1,964,000
	
485.23 	Hearing Loss Mentors. Of the general 
485.24 	fund appropriation, $40,000 each year is to 
485.25 	provide mentors who have a hearing loss 
485.26 	to parents of newly identified infants and 
485.27 	children with hearing loss.
485.28 	Base Adjustment. The general fund base is 
485.29 	$1,968,000 in each of fiscal years 2010 and 
485.30 	2011.

485.31	(g) Chemical Dependency Entitlement Grants

485.32	General
	 78,225,000
	88,138,000

486.1
486.2	(h) Chemical Dependency Nonentitlement 
Grants

486.3	General
	 1,655,000
	1,805,000
	
486.4	TANF
	150,000
	150,000
	
486.5 	Methamphetamine Abuse Grants. Of the 
486.6 	general fund appropriation, $175,000 in the 
486.7 	first year and $375,000 in the second year 
486.8 	are for grants to existing programs that treat 
486.9 	methamphetamine abuse, and the abuse 
486.10 	of other substances in Carlton, Faribault, 
486.11 	Martin, Olmsted, and Anoka Counties, that 
486.12 	received grant funds under Laws 2005, 
486.13 	chapter 136, article 1, section 9, subdivision 
486.14 	6. The commissioner shall administer the 
486.15 	grants to programs that the commissioner 
486.16 	deems successful, and may discontinue 
486.17 	grants to programs after an evaluation of 
486.18 	the program and a determination by the 
486.19 	commissioner that the program should no 
486.20 	longer receive funds. This appropriation 
486.21 	shall not become part of base level funding.
486.22 	Native American Juvenile Treatment 
486.23 	Center. Of the general fund appropriation, 
486.24 	$50,000 is to conduct a feasibility study 
486.25 	of and to predesign a Native American 
486.26 	juvenile treatment center on or near the 
486.27 	White Earth Reservation. The facility must 
486.28 	house and treat Native American juveniles 
486.29 	and provide culturally specific programming 
486.30 	to juveniles placed in the treatment center. 
486.31 	The commissioner of human services may 
486.32 	contract with parties who have experience 
486.33 	in the design and construction of juvenile 
486.34 	treatment centers to assist in the feasibility 
486.35 	study and predesign. On or before January 
486.36 	15, 2008, the commissioner shall present 
487.1 	the results of the feasibility study and the 
487.2 	predesign of the facility to the chairs of house 
487.3 	of representatives and senate committees 
487.4 	having jurisdiction over human services 
487.5 	finance, public safety finance, and capital 
487.6 	investment.
487.7 	Leech Lake Youth Treatment Center. Of 
487.8 	the general fund appropriation, $75,000 each 
487.9 	year are for a grant to the Leech Lake Youth 
487.10 	Treatment Center project partners, in order 
487.11 	to pay the salaries and other directly related 
487.12 	costs associated with the development of this 
487.13 	project. This is a onetime appropriation.
487.14 	Base Adjustment. The general fund base is 
487.15 	$1,055,000 in each of fiscal years 2010 and 
487.16 	2011.

487.17	(i) Other Continuing Care Grants

487.18	General
	 21,409,000
	16,983,000
	
487.19 	Repayment. Of the general fund 
487.20 	appropriation, $4,302,000 the first year 
487.21 	is to repay the amount of overspending 
487.22 	in the waiver program for persons with 
487.23 	developmental disabilities incurred by 
487.24 	Fillmore, Steele, and St. Louis Counties in 
487.25 	calendar years 2004 and 2005.
487.26 	Department of Employment and Economic 
487.27 	Development Transfer. For fiscal year 2008, 
487.28 	the commissioner of  finance shall transfer 
487.29 	$200,000 from the methamphetamine 
487.30 	abatement loan fund to the commissioner 
487.31 	of human services for methamphetamine 
487.32 	treatment programs.
487.33 	Disability Linkage Line. Of the general 
487.34 	fund appropriation, $469,000 in fiscal year 
488.1 	2008 and $626,000 in fiscal year 2009 are to 
488.2 	establish and maintain the disability linkage 
488.3 	line.
488.4 	Base Adjustment. The general fund base 
488.5 	is $17,103,000 in fiscal year 2010 and 
488.6 	$17,141,000 in fiscal year 2011 for other 
488.7 	continuing care grants.

488.8	Subd. 9.Continuing Care Management

488.9	General
	 19,387,000
	 19,699,000
	
488.10
488.11	State Government 
Special Revenue
	122,000
	125,000
	
488.12	Health Care Access
	293,000
	-0-
	
488.13	Lottery Prize
	252,000
	157,000
	
488.14 	Base Adjustment. The general fund base 
488.15 	is $19,530,000 in fiscal year 2010 and 
488.16 	$19,620,000 in fiscal year 2011.

488.17	Subd. 10.State-Operated Services
 					
488.18 	Transfer Authority Related to 
488.19 	State-Operated Services. Money 
488.20 	appropriated to finance state-operated 
488.21 	services programs and administrative 
488.22 	services may be transferred between fiscal 
488.23 	years of the biennium with the approval of 
488.24 	the commissioner of finance.

488.25	(a) Mental Health Services

488.26	General
	116,185,000
	119,507,000
	
488.27 	Appropriation Limitation. No part of 
488.28 	the appropriation in this article to the 
488.29 	commissioner for mental health treatment 
488.30 	services at the regional treatment centers 
488.31 	shall be used for the Minnesota sex offender 
488.32 	program.

488.33	(b) Minnesota Sex Offender Services

489.1	General
	67,614,000
	62,569,000

489.2
489.3	(c) Minnesota Security Hospital and METO 
Services

489.4	General
	82,495,000
	84,505,000
	
489.5 	Minnesota Security Hospital. For the 
489.6 	purposes of enhancing the safety of 
489.7 	the public, improving supervision, and 
489.8 	enhancing community-based mental health 
489.9 	treatment, state-operated services may 
489.10 	establish additional community capacity 
489.11 	for providing treatment and supervision 
489.12 	of clients who have been ordered into 
489.13 	less restrictive alternative care from the 
489.14 	state-operated services transitional services 
489.15 	program consistent with Minnesota Statutes, 
489.16 	section 246.014.

489.17	Sec. 4. COMMISSIONER OF HEALTH

489.18	Subdivision 1.Total Appropriation
 	$
	 154,874,000
	$
	148,015,000

489.19	Appropriations by Fund
	
489.20		2008
	2009
	
489.21	General
	 84,862,000
	79,348,000
	
489.22
489.23	State Government 
Special Revenue
	43,796,000
	42,799,000
	
489.24	Health Care Access
	 14,798,000
	14,135,000
	
489.25	Federal TANF
	11,418,000
	11,733,000
	
489.26 	Pay for Performance. (a) For the biennium 
489.27 	beginning July 1, 2009, of the general fund 
489.28 	appropriation, $91,000 each year shall 
489.29 	be made available to the commissioner 
489.30 	of health on January 1, 2011, only after 
489.31 	notification by the commissioner of health to 
489.32 	the commissioner of finance and to the chairs 
489.33 	of the relevant house of representatives and 
489.34 	senate finance and policy committees that the 
489.35 	state has met by that date the health disparity 
490.1 	elimination goals established in Minnesota 
490.2 	Statutes, section 145.928, subdivision 1.
490.3 	(b) Regardless of whether these 
490.4 	appropriations are made available to 
490.5 	the commissioner of health, they shall be 
490.6 	part of base level funding for the biennium 
490.7 	beginning July 1, 2011.
490.8 	(c) Notwithstanding any contrary provision 
490.9 	of this article, this rider shall not expire.
490.10 	Transfer from the State Government 
490.11 	Special Revenue Fund. (a) During the 
490.12 	fiscal year beginning July 1, 2007, the 
490.13 	commissioner of finance shall transfer 
490.14 	$7,200,000 from the state government 
490.15 	special revenue fund to the general fund.
490.16 	(b) Of this amount:
490.17 	(1) $200,000 the first year is for the heart 
490.18 	disease and stroke prevention unit to fund 
490.19 	data collection and other activities to improve 
490.20 	cardiovascular health and reduce the burden 
490.21 	of heart disease and stroke in Minnesota. 
490.22 	This is a onetime appropriation.
490.23 	(2) $300,000 in fiscal year 2008 is to provide 
490.24 	planning grants to community collaboratives 
490.25 	to cover the uninsured. This is a onetime 
490.26 	appropriation.
490.27 	(3) $250,000 in 2008 is for an AIDS 
490.28 	prevention initiative focusing on foreign-born 
490.29 	residents. This appropriation is a onetime 
490.30 	appropriation and shall not become part of 
490.31 	the base level funding for the 2010-2011 
490.32 	biennium.
490.33 	The commissioner of health shall award 
490.34 	grants in accordance with Minnesota Statutes, 
491.1 	section 145.924, paragraph (b), for a public 
491.2 	education and awareness campaign targeting 
491.3 	communities of foreign-born Minnesota 
491.4 	residents. The grants shall be designed to 
491.5 	promote knowledge and understanding about 
491.6 	HIV and to increase knowledge in order 
491.7 	to eliminate and reduce the risk for HIV 
491.8 	infection; to encourage screening and testing 
491.9 	for HIV; and to link individuals to public 
491.10 	health and health care resources. The grants 
491.11 	must be awarded to collaborative efforts that 
491.12 	bring together nonprofit community-based 
491.13 	groups with demonstrated experience in 
491.14 	addressing the public health, health care, 
491.15 	and social service needs of foreign-born 
491.16 	communities.
491.17 	(4) $199,000 the first year is for the 
491.18 	purpose of providing family support and 
491.19 	assistance to families with children who 
491.20 	are deaf or have a hearing loss. The 
491.21 	family support provided must include direct 
491.22 	parent-to-parent assistance and information 
491.23 	on communication, educational, and medical 
491.24 	options. The commissioner may contract 
491.25 	with a nonprofit organization that has the 
491.26 	ability to provide these services throughout 
491.27 	the state. This appropriation is available until 
491.28 	June 30, 2009.
491.29 	(c) Notwithstanding any contrary provision 
491.30 	in this article, this rider shall not expire.

491.31
491.32	Subd. 2.Community and Family Health 
Promotion

491.33	Appropriations by Fund
	
491.34	General
	 44,271,000
	43,836,000
	
491.35
491.36	State Government 
Special Revenue
	870,000
	875,000
	
492.1	Health Care Access
	 4,050,000
	4,086,000
	
492.2	Federal TANF
	8,735,000
	8,735,000
	
492.3 	TANF Appropriations. (a) $3,579,000 of 
492.4 	the TANF funds is appropriated in each year 
492.5 	of the biennium to the commissioner for 
492.6 	home visiting and nutritional services listed 
492.7 	under Minnesota Statutes, section 145.882, 
492.8 	subdivision 7, clauses (6) and (7). Funding 
492.9 	shall be distributed to community health 
492.10 	boards according to Minnesota Statutes, 
492.11 	section 145A.131, subdivision 1.
492.12 	(b) $4,000,000 in the first year and $4,000,000 
492.13 	in the second year are appropriated to the 
492.14 	commissioner of health for the family 
492.15 	home visiting grant program according 
492.16 	to Minnesota Statutes, section 145A.17. 
492.17 	Funding shall be distributed to community 
492.18 	health boards according to Minnesota 
492.19 	Statutes, section 145A.131, subdivision 1. 
492.20 	The commissioner may use five percent of 
492.21 	the funds appropriated in each fiscal year to 
492.22 	conduct the ongoing evaluations required 
492.23 	under Minnesota Statutes, section 145A.17, 
492.24 	subdivision 7, and may use ten percent of 
492.25 	the funds appropriated each fiscal year to 
492.26 	provide training and technical assistance as 
492.27 	required under Minnesota Statutes, section 
492.28 	145A.17, subdivisions 4 and 5.
492.29 	TANF Carryforward. Any unexpended 
492.30 	balance of the TANF appropriation in the 
492.31 	first year of the biennium does not cancel but 
492.32 	is available for the second year.
492.33 	Loan Forgiveness. $400,000 in fiscal 
492.34 	year 2010 and $400,000 in fiscal year 
492.35 	2011 from the state government special 
493.1 	revenue fund are to the commissioner 
493.2 	for the loan forgiveness program under 
493.3 	Minnesota Statutes, section 144.1501. This 
493.4 	appropriation shall not become part of base 
493.5 	level funding for the biennium beginning 
493.6 	July 1, 2011. Notwithstanding any contrary 
493.7 	provision in this article, this rider expires 
493.8 	December 31, 2011.
493.9 	MN ENABL. Base level funding for the MN 
493.10 	ENABL program, under Minnesota Statutes, 
493.11 	section 145.9255, is reduced by $220,000 
493.12 	each year of the biennium beginning July 1, 
493.13 	2007.
493.14 	Fetal Alcohol Spectrum Disorder.
493.15 	$500,000 each year from the general fund is 
493.16 	added to the base for fetal alcohol spectrum 
493.17 	disorder.
493.18 	(1) On July 1 of each fiscal year, the 
493.19 	portion of the general fund appropriation 
493.20 	to the commissioner of health for fetal 
493.21 	alcohol spectrum disorder administration 
493.22 	and grants shall be transferred to a 
493.23 	statewide organization that focuses solely 
493.24 	on prevention of and intervention with fetal 
493.25 	alcohol spectrum disorder as follows:
493.26 	(i) on July 1, 2007, $1,690,000; and
493.27 	(ii) on July 1, 2008, $1,690,000.
493.28 	(2) The money shall be used for prevention 
493.29 	and intervention services and programs, 
493.30 	including, but not limited to, community 
493.31 	grants, professional education, public 
493.32 	awareness, and diagnosis. The organization 
493.33 	may retain $60,000 of the transferred money 
493.34 	for administrative costs. The organization 
493.35 	shall report to the commissioner annually 
494.1 	by January 15 on the services and programs 
494.2 	funded by the appropriation.
494.3 	(3) Notwithstanding any contrary provision 
494.4 	in this article, this rider shall not expire.
494.5 	Family Planning Grants. Of the TANF 
494.6 	appropriation, $1,156,000 each year is for 
494.7 	family planning grants under Minnesota 
494.8 	Statutes, section 145.925.
494.9 	Suicide prevention programs. Of the 
494.10 	general fund appropriation, $335,000 in fiscal 
494.11 	year 2008 and $145,000 in fiscal year 2009 
494.12 	are to fund the suicide prevention program.
494.13 	Hearing Aid and Instrument Loan Bank.
494.14 	Of the general fund appropriation, $70,000 
494.15 	each year is to the commissioner for the 
494.16 	purpose of providing a grant to cover 
494.17 	administrative costs for a statewide hearing 
494.18 	aid and instrument loan bank to families with 
494.19 	children newly diagnosed with hearing loss 
494.20 	from birth to the age of ten.
494.21 	Medical Home Learning Collaborative.
494.22 	Of the health care access fund appropriation, 
494.23 	$500,000 in fiscal year 2008 and $500,000 in 
494.24 	fiscal year 2009 are to expand the medical 
494.25 	home learning collaborative initiative in 
494.26 	collaboration with the commissioner of 
494.27 	human services. Services provided under this 
494.28 	funding must support a medical home model 
494.29 	for children with special health care needs. 
494.30 	The collaborative shall report back to the 
494.31 	legislature on use of the funds by January 15, 
494.32 	2010. This appropriation shall not become 
494.33 	part of the base funding for the 2010-2011 
494.34 	biennium.
495.1 	Base Adjustment. The health care access 
495.2 	fund base is $3,586,000 in each of fiscal 
495.3 	years 2010 and 2011.

495.4	Subd. 3.Policy, Quality, and Compliance

495.5	Appropriations by Fund
	
495.6	General
	 11,732,000
	11,450,000
	
495.7
495.8	State Government 
Special Revenue
	13,451,000
	13,597,000
	
495.9	Health Care Access
	 10,748,000
	10,049,000
	
495.10 	Transformation Task Force. Of the health 
495.11 	care access fund appropriation, $170,000 the 
495.12 	first year is for the health care Transformation 
495.13 	Task Force.
495.14 	Health Care Access Survey. Of the 
495.15 	health care access fund appropriation, 
495.16 	$600,000 in fiscal year 2008 is appropriated 
495.17 	to the commissioner to conduct a health 
495.18 	insurance survey of Minnesota households, 
495.19 	in partnership with the State Health Access 
495.20 	Data Assistance Center at the University 
495.21 	of Minnesota. The commissioner shall 
495.22 	contract with the State Health Access Data 
495.23 	Assistance Center to conduct a survey that 
495.24 	provides information on the characteristics 
495.25 	of the uninsured in Minnesota and the 
495.26 	reasons for changing patterns of insurance 
495.27 	coverage and access to health care services. 
495.28 	This appropriation shall become part of the 
495.29 	agency's base budget for even-numbered 
495.30 	fiscal years.
495.31 	MERC Federal Compliance. Of the general 
495.32 	fund appropriation, $6,250,000 each year is 
495.33 	to the commissioner to distribute to the Mayo 
495.34 	Clinic for the purpose of providing transition 
495.35 	funding while federal compliance changes 
495.36 	are made to the medical education and 
496.1 	research cost funding distribution formula in 
496.2 	Minnesota Statutes, section 62J.692.
496.3 	The base level funding for 2010 and 2011 is 
496.4 	$2,000,000 each year. This funding shall not 
496.5 	become part of the base in 2012 and 2013.
496.6 	Notwithstanding any contrary provision of 
496.7 	this article, this rider expires June 30, 2012.
496.8 	Health Information Technology. Of the 
496.9 	health care access fund appropriation; (1) 
496.10 	$3,500,000 each fiscal year is to implement 
496.11 	Minnesota Statutes, section 144.3345; (2) up 
496.12 	to $350,000 each fiscal year is available for 
496.13 	grant administration and health information 
496.14 	technology technical assistance; and (3) 
496.15 	$3,150,000 each year is to establish a 
496.16 	revolving loan account under Minnesota 
496.17 	Statutes, section 62J.496. This appropriation 
496.18 	shall not be included in the agency's base 
496.19 	budget for the fiscal year beginning July 1, 
496.20 	2009.
496.21 	Uniform Electronic Transactions. Of 
496.22 	the health care access fund appropriation, 
496.23 	$146,000 in fiscal year 2008 is for 
496.24 	development of uniform electronic 
496.25 	transactions and implementation guide 
496.26 	standards under Minnesota Statutes, section 
496.27 	62J.536. Funding for the 2010-2011 
496.28 	biennium shall be from the general fund.
496.29 	Federally Qualified Health Centers. Of the 
496.30 	general fund appropriation, $1,500,000 in 
496.31 	each fiscal year is for subsidies to federally 
496.32 	qualified health centers under Minnesota 
496.33 	Statutes, section 145.9269.
496.34 	Community Collaboratives. Of the general 
496.35 	fund appropriation, $300,000 in fiscal 
497.1 	year 2008 is to provide planning grants 
497.2 	to community collaboratives to cover the 
497.3 	uninsured. This is a onetime appropriation.
497.4 	Base Adjustment. The general fund base 
497.5 	is $7,346,000 in each of fiscal years 2010 
497.6 	and 2011. The health care access fund 
497.7 	base is $3,503,000 in fiscal year 2010 and 
497.8 	$2,903,000 in fiscal year 2011. The state 
497.9 	government special revenue fund base 
497.10 	is $14,015,000 in fiscal year 2010 and 
497.11 	$14,002,000 in fiscal year 2011.

497.12	Subd. 4.Health Protection

497.13	Appropriations by Fund
	
497.14	General
	 15,315,000
	10,526,000
	
497.15
497.16	State Government 
Special Revenue
	27,475,000
	28,327,000
	
497.17 	Pandemic Influenza Preparedness. Of the 
497.18 	general fund appropriation, (1) $115,000 in 
497.19 	fiscal year 2008 is for department activities 
497.20 	of epidemiology, laboratory services, 
497.21 	exercises, and planning, and (2) $3,970,000 
497.22 	is to purchase antiviral medications and 
497.23 	prepare and manage a stockpile of health 
497.24 	care supplies.
497.25 	Lead Abatement. Of the general fund 
497.26 	appropriation, $388,000 in each fiscal year is 
497.27 	for the lead abatement program in Minnesota 
497.28 	Statutes, section 144.9512.
497.29 	Water Treatment. Of the general fund 
497.30 	appropriation, $40,000 in fiscal year 2008 
497.31 	is to augment any appropriation from the 
497.32 	remediation fund to conduct an evaluation of 
497.33 	point of use water treatment units at removing 
497.34 	perfluorooctanoic acid, perfluorooctane 
497.35 	sulfonate, and perfluorobutanoic acid from 
498.1 	known concentrations of these compounds 
498.2 	in drinking water. The evaluation shall be 
498.3 	completed by December 31, 2007, and the 
498.4 	commissioner may contract for services to 
498.5 	complete the evaluation. This is a onetime 
498.6 	appropriation.
498.7 	HIV Information. Of the general fund 
498.8 	appropriation, $80,000 each year is to fund 
498.9 	a community-based nonprofit organization 
498.10 	with demonstrated capacity to operate a 
498.11 	statewide HIV information and referral 
498.12 	service using telephone, Internet, and other 
498.13 	appropriate technologies. This appropriation 
498.14 	shall become part of base level funding for 
498.15 	the biennium beginning July 1, 2009.
498.16 	Base Adjustment. The general fund base is 
498.17 	$10,526,000 in each of the fiscal years 2010 
498.18 	and 2011.

498.19	Subd. 5.Minority and Multicultural Health

498.20	Appropriations by Fund
	
498.21	General
	5,047,000
	5,012,000
	
498.22	Federal TANF
	2,683,000
	2,998,000
	
498.23 	TANF Appropriations. (a) $2,000,000 
498.24 	of the TANF funds is appropriated in each 
498.25 	year of the biennium to the commissioner 
498.26 	for decreasing racial and ethnic disparities 
498.27 	in infant mortality rates under Minnesota 
498.28 	Statutes, section 145.928, subdivision 7.
498.29 	(b) $683,000 the first year and $998,000 
498.30 	the second year of the TANF funds are 
498.31 	appropriated to the commissioner for the 
498.32 	family home visiting and grant program 
498.33 	under Minnesota Statutes, section 145A.17. 
498.34 	Funding shall be distributed to tribal 
498.35 	governments based on Minnesota Statutes, 
499.1 	section 145A.14, subdivision 2a, paragraph 
499.2 	(b). The commissioner may use five percent 
499.3 	of the funds appropriated in each fiscal year 
499.4 	to conduct the ongoing evaluations required 
499.5 	under Minnesota Statutes, section 145A.17, 
499.6 	subdivision 7, and may use ten percent of 
499.7 	the funds appropriated each fiscal year to 
499.8 	provide training and technical assistance as 
499.9 	required under Minnesota Statutes, section 
499.10 	145A.17, subdivisions 4 and 5.
499.11 	TANF Carryforward. Any unexpended 
499.12 	balance of the TANF appropriation in the 
499.13 	first year of the biennium does not cancel but 
499.14 	is available for the second year.

499.15	Subd. 6.Administrative Support Services

499.16	Appropriations by Fund
	
499.17	General
	8,497,000
	8,524,000
	
499.18
499.19	State Government 
Special Revenue
	2,000,000
	-0-
	
499.20 	Disease Surveillance. Of the state 
499.21 	government special revenue fund 
499.22 	appropriation, $2,000,000 the first year is for 
499.23 	redesigning and implementing coordinated 
499.24 	and modern disease surveillance systems 
499.25 	for the department, and for modifying the 
499.26 	Minnesota Cancer Surveillance database and 
499.27 	communicating with providers to include 
499.28 	occupational and residential histories. This 
499.29 	is a onetime appropriation.

499.30
499.31	Sec. 5. VETERANS NURSING HOMES 
BOARD
 	$
	 43,184,000
	$
	 45,206,000
	
499.32 	Veterans Homes Special Revenue Account.
499.33 	The general fund  appropriations made to 
499.34 	the board may be transferred to a veterans 
499.35 	homes special revenue account in the 
500.1 	special revenue fund in the same manner 
500.2 	as other receipts are deposited according to 
500.3 	Minnesota Statutes, section 198.34, and are 
500.4 	appropriated to the board for the operation of 
500.5 	board facilities and programs.
500.6 	Repair and Betterment. Of this 
500.7 	appropriation, $3,250,000 in fiscal year 2008 
500.8 	and $3,250,000 in fiscal year 2009 are to be 
500.9 	used for repair, maintenance, rehabilitation, 
500.10 	and betterment activities at facilities 
500.11 	statewide. This is a onetime appropriation.
500.12 	Base Adjustment. The general fund base is 
500.13 	$41,956,000 in each year of the fiscal 2010 
500.14 	and 2011 biennium.
500.15 	Pay for Performance. (a) For fiscal year 
500.16 	2008, $50,000 shall be made available to 
500.17 	the board on January 1, 2009, only after 
500.18 	notification by the board to the commissioner 
500.19 	of finance and to the chairs of the relevant 
500.20 	house of representatives and senate finance 
500.21 	and policy committees that during the period 
500.22 	October 1, 2007, to September 30, 2008, the 
500.23 	Department of Health has not issued any 
500.24 	penalty assessments under the provisions 
500.25 	of Minnesota Statutes, section 144.653 or 
500.26 	144A.10, or any correction orders under the 
500.27 	provisions of Minnesota Statutes, section 
500.28 	144.653 or 144A.10, that the Department 
500.29 	of Health deems equivalent to findings of 
500.30 	either immediate jeopardy or substandard 
500.31 	quality of care, as defined in Code of Federal 
500.32 	Regulations, title 42, section 488.301.
500.33 	(b) Regardless of whether this appropriation 
500.34 	is made available to the board, it shall be 
501.1 	part of base level funding for the biennium 
501.2 	beginning July 1, 2009.

501.3	Sec. 6. HEALTH-RELATED BOARDS

501.4
501.5	Subdivision 1.Total Appropriation; State 
Government Special Revenue Fund
 	$
	14,654,000
	$
	14,527,000
	
501.6 	The amounts that may be spent for each 
501.7 	purpose are specified in the following 
501.8 	subdivisions.

501.9	Subd. 2.Board of Chiropractic Examiners
 		450,000
		447,000

501.10	Subd. 3.Board of Dentistry
 		987,000
		1,009,000

501.11
501.12	Subd. 4.Board of Dietetic and Nutrition 
Practice
 		103,000
		119,000
	
501.13 	Base Adjustment. Of this appropriation in 
501.14 	fiscal year 2009, $14,000 is onetime.

501.15
501.16	Subd. 5.Board of Marriage and Family 
Therapy
 		134,000
		154,000
	
501.17 	Base Adjustment. Of this appropriation in 
501.18 	fiscal year 2009, $17,000 is onetime.

501.19	Subd. 6.Board of Medical Practice
 		4,120,000
		3,674,000

501.20	Subd. 7.Board of Nursing
 		3,985,000
		4,146,000

501.21
501.22	Subd. 8.Board of Nursing Home 
Administrators
 		633,000
		647,000
	
501.23 	Administrative Services Unit. Of this 
501.24 	appropriation, $430,000 in fiscal year 
501.25 	2008 and $439,000 in fiscal year 2009 are 
501.26 	for the administrative services unit. The 
501.27 	administrative services unit may receive 
501.28 	and expend reimbursements for services 
501.29 	performed by other agencies.

501.30	Subd. 9.Board of Optometry
 		98,000
		114,000
	
501.31 	Base Adjustment. Of this appropriation in 
501.32 	fiscal year 2009, $13,000 is onetime.

501.33	Subd. 10.Board of Pharmacy
 		1,375,000
		1,442,000
	
502.1 	Base Adjustment. Of this appropriation in 
502.2 	fiscal year 2009, $29,000 is onetime.

502.3	Subd. 11.Board of Physical Therapy
 		306,000
		295,000

502.4	Subd. 12.Board of Podiatry
 		54,000
		63,000
	
502.5 	Base Adjustment. Of this appropriation in 
502.6 	fiscal year 2009, $7,000 is onetime.

502.7	Subd. 13.Board of Psychology
 		788,000
		806,000

502.8	Subd. 14.Board of Social Work
 		997,000
		1,022,000

502.9	Subd. 15.Board of Veterinary Medicine
 		230,000
		195,000

502.10
502.11	Subd. 16.Board of Behavioral Health and 
Therapy
 		394,000
		394,000

502.12
502.13	Sec. 7. EMERGENCY MEDICAL SERVICES 
BOARD
 	$
	 4,346,000
	$
	 4,392,000

502.14	Appropriations by Fund
	
502.15		2008
	2009
	
502.16	General
	 3,659,000
	3,688,000
	
502.17
502.18	State Government 
Special Revenue
	687,000
	704,000
	
502.19 	Regional Grants. Of the general fund 
502.20 	appropriation, $400,000 in fiscal year 2008 
502.21 	and $400,000 in fiscal year 2009 are to 
502.22 	the board for regional emergency medical 
502.23 	services programs, to be distributed equally 
502.24 	to the eight emergency medical service 
502.25 	regions. This amount shall not become part 
502.26 	of base level funding. Notwithstanding 
502.27 	Minnesota Statutes, section 144E.50, 100 
502.28 	percent of the appropriation shall be passed 
502.29 	on to the emergency medical service regions.
502.30 	Longevity Award and Incentive Program.
502.31 	(a) Of the general fund appropriation, 
502.32 	$700,000 in fiscal year 2008 and $700,000 
502.33 	in fiscal year 2009 are to the board for the 
502.34 	ambulance service personnel longevity award 
503.1 	and incentive program, under Minnesota 
503.2 	Statutes, section 144E.40.
503.3 	(b) In fiscal year 2008, $800,000 shall be 
503.4 	transferred from the ambulance service 
503.5 	personnel longevity award and incentive 
503.6 	trust to the general fund.
503.7 	Health Professional Services Program.
503.8 	$687,000 in fiscal year 2008 and $704,000 in 
503.9 	fiscal year 2009 from the state government 
503.10 	special revenue fund are for the health 
503.11 	professional services program.
503.12 	Base Adjustment. The general fund base is 
503.13 	$3,288,000 in each year of the fiscal 2010 
503.14 	and 2011 biennium.

503.15	Sec. 8. COUNCIL ON DISABILITY
 	$
	812,000
	$
	524,000
	
503.16 	Assistive Technology. Of the general 
503.17 	fund appropriation to the Council on 
503.18 	Disability in fiscal year 2008, $100,000 
503.19 	is to provide financial support to the 
503.20 	Minnesota Regional Assistive Technology 
503.21 	Collaborative, and $200,000 is for a transfer 
503.22 	to the commissioner of administration 
503.23 	for the purposes of completing the state's 
503.24 	remaining share of the local match required 
503.25 	to access the federal Technology Related 
503.26 	Assistance Act for Persons with Disabilities, 
503.27 	Title III, Alternative Financing Project 2003 
503.28 	grant award, which provides microloans 
503.29 	to individuals for the purpose of acquiring 
503.30 	assistive technology devices and services.

503.31
503.32
503.33	Sec. 9. OMBUDSMAN FOR MENTAL 
HEALTH AND DEVELOPMENTAL 
DISABILITIES
 	$
	1,584,000
	$
	1,655,000

503.34	Sec. 10. OMBUDSMAN FOR FAMILIES
 	$
	255,000
	$
	265,000

504.1 	Sec. 11. Minnesota Statutes 2006, section 16A.724, is amended by adding a 
504.2 	subdivision to read:
504.3 		Subd. 3.MinnesotaCare federal receipts. Receipts received as a result of federal 
504.4 	participation pertaining to administrative costs of the Minnesota health care reform waiver 
504.5 	shall be deposited as nondedicated revenue in the health care access fund. Receipts 
504.6 	received as a result of federal participation pertaining to grants shall be deposited in the 
504.7 	federal fund and shall offset health care access funds for payments to providers.

504.8 	Sec. 12. Minnesota Statutes 2006, section 16A.724, is amended by adding a 
504.9 	subdivision to read:
504.10 		Subd. 4.MinnesotaCare funding. The commissioner of human services may 
504.11 	expend money appropriated from the health care access fund for MinnesotaCare in either 
504.12 	year of the biennium.

504.13 	Sec. 13. Minnesota Statutes 2006, section 69.021, subdivision 11, is amended to read:
504.14 		Subd. 11.Excess police state-aid holding account. (a) The excess police state-aid 
504.15 	holding account is established in the general fund. The excess police state-aid holding 
504.16 	account must be administered by the commissioner.
504.17 	(b) Excess police state aid determined according to subdivision 10, must be 
504.18 	deposited in the excess police state-aid holding account.
504.19 	(c) From the balance in the excess police state-aid holding account, $900,000 
504.20 	is appropriated to and must be transferredcanceled annually to the ambulance service 
504.21 	personnel longevity award and incentive suspense account established by section 144E.42, 
504.22 	subdivision 2 to the general fund.
504.23 	(d) If a police officer stress reduction program is created by law and money is 
504.24 	appropriated for that program, an amount equal to that appropriation must be transferred 
504.25 	to the administrator of that program from the balance in the excess police state-aid holding 
504.26 	account.
504.27 	(e) On October 1 of each year, one-half of the balance of the excess police 
504.28 	state-aid holding account remaining after the deductions under paragraphs (c) and (d) is 
504.29 	appropriated for additional amortization aid under section 423A.02, subdivision 1b.
504.30 	(f) Annually, the remaining balance in the excess police state-aid holding account, 
504.31 	after the deductions under paragraphs (c), (d), and (e), cancels to the general fund.

504.32 	Sec. 14. Minnesota Statutes 2006, section 245.771, is amended by adding a subdivision 
504.33 	to read:
505.1 		Subd. 4.Food stamp bonus awards. In the event that Minnesota qualifies for 
505.2 	the United States Department of Agriculture Food and Nutrition Services Food Stamp 
505.3 	Program performance bonus awards, the funding is appropriated to the commissioner. The 
505.4 	commissioner shall retain 25 percent of the funding and distribute the other 75 percent 
505.5 	among the counties according to a formula that takes into account each county's impact 
505.6 	on state performance in the applicable bonus categories.

505.7 	Sec. 15. Minnesota Statutes 2006, section 256.01, is amended by adding a subdivision 
505.8 	to read:
505.9 		Subd. 23.Nonstate funding for program costs. Notwithstanding sections 16A.013 
505.10 	to 16A.016, the commissioner may accept, on behalf of the state, additional funding 
505.11 	from sources other than state funds for the purpose of financing the cost of assistance 
505.12 	program grants or nongrant administration. All additional funding is appropriated to the 
505.13 	commissioner for use as designated by the grantor of funding.

505.14 	Sec. 16. Minnesota Statutes 2006, section 256.01, is amended by adding a subdivision 
505.15 	to read:
505.16 		Subd. 24.Systems continuity. In the event of disruption of technical systems or 
505.17 	computer operations, the commissioner may use available grant appropriations to ensure 
505.18 	continuity of payments for maintaining the health, safety, and well-being of clients served 
505.19 	by programs administered by the Department of Human Services. Grant funds must be 
505.20 	used in a manner consistent with the original intent of the appropriation.

505.21 	Sec. 17. Minnesota Statutes 2006, section 256J.02, is amended by adding a subdivision 
505.22 	to read:
505.23 		Subd. 6.TANF funds appropriated to other entities. Any expenditures from 
505.24 	the TANF block grant shall be expended in accordance with the requirements and 
505.25 	limitations of part A of Title IV of the Social Security Act, as amended, and any other 
505.26 	applicable federal requirement or limitation. Prior to any expenditure of these funds, the 
505.27 	commissioner shall ensure that funds are expended in compliance with the requirements 
505.28 	and limitations of federal law and that any reporting requirements of federal law are 
505.29 	met. It shall be the responsibility of any entity to which these funds are appropriated to 
505.30 	implement a memorandum of understanding with the commissioner that provides the 
505.31 	necessary assurance of compliance prior to any expenditure of funds. The commissioner 
505.32 	shall receipt TANF funds appropriated to other state agencies and coordinate all related 
505.33 	interagency accounting transactions necessary to implement these appropriations. 
506.1 	Unexpended TANF funds appropriated to any state, local, or nonprofit entity cancel at the 
506.2 	end of the state fiscal year unless appropriating or statutory language permits otherwise.

506.3 	Sec. 18. Minnesota Statutes 2006, section 256J.77, is amended to read:
506.4 	256J.77 AGING OF CASH BENEFITS.
506.5 	Cash benefits under chapters 256D, 256J, and 256K, except food stamp benefits 
506.6 	under chapter 256D,  by warrants or electronic benefit transfer that have not been accessed 
506.7 	within 90 days of issuance shall be canceled. Cash benefits may be replaced after they are 
506.8 	canceled, for up to one year after the date of issuance, if failure to do so would place the 
506.9 	client or family at risk. For purposes of this section, "accessed" means cashing a warrant 
506.10 	or making at least one withdrawal from benefits deposited in an electronic benefit account.

506.11 	Sec. 19. Minnesota Statutes 2006, section 518A.56, is amended by adding a 
506.12 	subdivision to read:
506.13 		Subd. 13.Child support payment center. Payments to the commissioner from 
506.14 	other governmental units, private enterprises, and individuals for services performed by 
506.15 	the child support payment center must be deposited in the state systems account authorized 
506.16 	under section 256.014. These payments are appropriated to the commissioner for the 
506.17 	operation of the child support payment center or system, according to section 256.014.

506.18 	Sec. 20. NONGRANT OPERATING CARRYFORWARD.
 506.19 	For the biennium ending June 30, 2007, any remaining nongrant operating balances 
506.20 	in the Department of Human Services, Minnesota Department of Health, veterans homes, 
506.21 	health-related boards, emergency medical services boards, Council on Disability, the 
506.22 	ombudsman for mental health and developmental disabilities, and the ombudsman 
506.23 	for families direct appropriated accounts may be transferred, with the approval of the 
506.24 	commissioner of finance, to a special revenue account. Funds in those accounts are 
506.25 	appropriated for costs associated with onetime technology, infrastructure, and systems 
506.26 	development projects. Remaining nongrant operating balances in fiscal year 2007 in 
506.27 	the Minnesota sex offender program and the Minnesota security hospital shall not be 
506.28 	transferred.
506.29 	(a) Transfers to a special revenue account shall be reported to the chairs and the 
506.30 	ranking members of the senate Health and Human Services Budget Division and the house 
506.31 	of representatives Health Care and Human Services Finance Division.
507.1 	(b) When these balances originate in nongeneral funds, the transfers shall be made 
507.2 	to separate accounts within the same funds and may only be used to support projects 
507.3 	relevant to the original funding source.
507.4 	(c) Uses of these special revenue account funds shall be reported annually by each 
507.5 	agency to the commissioner of finance, and to the chairs and ranking members of the 
507.6 	senate Health and Human Services Budget Division and the house of representatives 
507.7 	Health Care and Human Services Finance Division.

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

507.9 	Sec. 21. TRANSFERS.
 507.10 		Subdivision 1.Grants. The commissioner of human services, with the approval 
507.11 	of the commissioner of finance and after notifying the chairs of the senate and house 
507.12 	committees with jurisdiction, may transfer unencumbered appropriation balances for the 
507.13 	biennium ending June 30, 2009, within fiscal years among the MFIP; general assistance; 
507.14 	general assistance medical care; medical assistance; MFIP child care assistance under 
507.15 	Minnesota Statutes, section 119B.05; Minnesota supplemental aid and group residential 
507.16 	housing programs; and the entitlement portion of the chemical dependency consolidated 
507.17 	treatment fund and between fiscal years of the biennium.
507.18 		Subd. 2.Administration. Positions, salary money, and nonsalary administrative 
507.19 	money may be transferred within the Departments of Human Services and Health and 
507.20 	within the programs operated by the Veterans Nursing Homes Board as the commissioners 
507.21 	and the board consider necessary, with the advance approval of the commissioner of 
507.22 	finance. The commissioner or the board shall inform the chairs of the house and senate 
507.23 	committees with jurisdiction quarterly about transfers made under this provision.

507.24 	Sec. 22. INDIRECT COSTS NOT TO FUND PROGRAMS.
 507.25 	The commissioners of health and of human services shall not use indirect cost 
507.26 	allocations to pay for the operational costs of any program for which they are responsible.

507.27 	Sec. 23. SUNSET OF UNCODIFIED LANGUAGE.
 507.28 	All uncodified language contained in this article expires on June 30, 2009, unless a 
507.29 	different expiration date is explicit.

507.30 	Sec. 24. EFFECTIVE DATE.
 507.31 	The provisions in this article are effective July 1, 2007, unless a different effective 
507.32 	date is specified.