1.1 	A bill for an act
1.2 	relating to human services; changing mental health provisions; requiring 
1.3 	mental health assessments for certain inmates; establishing children's mental 
1.4 	health grants and training; requiring a study to determine the feasibility of 
1.5 	requiring students of higher education to carry health insurance; creating a loan 
1.6 	forgiveness program; establishing the Crisis Intervention Team State Council; 
1.7 	making changes to mental health funding provisions; establishing pilot projects; 
1.8 	authorizing grant funding; requiring reports; appropriating money;amending 
1.9 	Minnesota Statutes 2006, sections 245.4712, subdivision 1; 245.50, subdivision 
1.10 	5; 256B.038; 256B.0623, subdivision 8; 256B.0625, subdivisions 38, 43, 46; 
1.11 	256B.0943, by adding subdivisions; 256B.69, subdivisions 5g, 5h; 256B.763; 
1.12 	256D.03, subdivisions 3, 4; 256D.44, subdivision 5; 256L.03, subdivisions 1, 5; 
1.13 	256L.035; 256L.07, subdivision 3; 256L.12, subdivision 9a; 641.15, by adding 
1.14 	a subdivision; proposing coding for new law in Minnesota Statutes, chapters 
1.15 	144; 245; 245A; 256; 626; 641.
1.16 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.17 	ARTICLE 1
1.18 	CRIMINAL JUSTICE

1.19 	Section 1. [626.96] CRISIS INTERVENTION TEAM STATE COUNCIL.
1.20 		Subdivision 1.Purpose. (a) The purpose of the Crisis Intervention Team (CIT) 
1.21 	State Council is to encourage and support the statewide development of law enforcement 
1.22 	CIT's. The council shall serve as the governing body on the finance, curriculum, and 
1.23 	programs for CIT training.
1.24 	(b) The council shall promote the development of local collaboratives between 
1.25 	public safety professionals, community providers, and citizens.
1.26 	(c) The council shall maintain a mailing list of all CIT trained officers in Minnesota, 
1.27 	sponsor an annual Minnesota CIT conference, and develop systems to promote and 
1.28 	support CIT officers and stakeholders.
2.1 		Subd. 2.Membership. The commissioner of public safety shall appoint members 
2.2 	to the CIT State Council. Members must include, but not be limited to:
2.3 	(1) a representative of the Barbara Schneider Foundation;
2.4 	(2) a representative of the National Alliance on Mental Illness;
2.5 	(3) a representative of the Minnesota Mental Health Association;
2.6 	(4) a representative from a mental health court;
2.7 	(5) a representative from a hospital with emergency and inpatient psychiatric 
2.8 	services;
2.9 	(6) a representative of the Minnesota Chiefs of Police Association from a police 
2.10 	department of a city of the third or fourth class;
2.11 	(7) a representative from the Minnesota Sheriffs Association;
2.12 	(8) a representative of the CIT Officers Association;
2.13 	(9) a training director or CIT coordinator from an operational CIT unit; and
2.14 	(10) a representative from the Peace Officers Standards and Training Board.
2.15 		Subd. 3.Crisis intervention team training. (a) The council shall have at least one 
2.16 	employee who shall be responsible for coordination of the statewide CIT training for 
2.17 	public safety officers. Components of the training must include, but not be limited to: 
2.18 	(1) an overview of mental illnesses and the mental health system; 
2.19 	(2) site visits to psychiatric receiving facilities; 
2.20 	(3) mental health courts; 
2.21 	(4) specific psychiatric conditions, their manifestations, and treatment; and 
2.22 	(5) CIT reporting and data collection.
2.23 	(b) Training under paragraph (a) shall be a minimum of 40 hours.

2.24 	Sec. 2. Minnesota Statutes 2006, section 641.15, is amended by adding a subdivision 
2.25 	to read:
2.26 		Subd. 3a.Intake procedure; approved mental health screening. As part of its 
2.27 	intake procedure for new prisoners, the sheriff or local corrections shall use a mental 
2.28 	health screening tool approved by the commissioner of corrections in consultation with 
2.29 	the commissioner of human services and local corrections staff to identify persons who 
2.30 	may have mental illness.

2.31 	Sec. 3. [641.156] COUNTY JAIL REENTRY PROJECTS; GRANTS.
2.32 		Subdivision 1.Purpose. The purpose of the reentry project is to promote public 
2.33 	safety, prevent recidivism, and promote a successful reintegration into the community 
2.34 	by providing services to individuals confined in jails and county regional jails who are 
3.1 	identified as having mental illness, traumatic brain injury, chemical dependency, or being 
3.2 	homeless.
3.3 		Subd. 2.Grants. (a) The commissioner of corrections, in consultation with the 
3.4 	commissioner of human services, shall award grants to county boards for two-year reentry 
3.5 	pilot projects. At a minimum, one project must be located outside the seven-county 
3.6 	metropolitan area. Projects will target prisoners in jails and county regional jails who 
3.7 	are identified as having:
3.8 	(1) a mental illness, as defined in section 245.462, subdivision 20;
3.9 	(2) a traumatic brain injury, as defined in section 256B.093, subdivision 4;
3.10 	(3) chemical dependency, as defined in section 253B.02, subdivision 2; or
3.11 	(4) a history of homelessness, as defined in section 116L.361, subdivision 5.
3.12 	(b) The projects shall provide a range of services including, but not limited to, 
3.13 	screening and assessment, client-specific programming, discharge planning and follow 
3.14 	up assistance, and follow up for at least six months after the prisoner has reentered the 
3.15 	community.
3.16 		Subd. 3.Applications. A grant applicant shall prepare and submit to the 
3.17 	commissioner of corrections a written proposal detailing the plan and strategies on how 
3.18 	the applicant will implement the program components in subdivision 4. The application 
3.19 	shall include a proposed evaluation component of outcome measures including, but not 
3.20 	limited to, numbers of prisoners served, recidivism, restoration of public benefits, and 
3.21 	status regarding housing, employment, and treatment needs after six months.
3.22 		Subd. 4.Program components. Each participating county shall:
3.23 	(a) develop a written collaborative plan between the county jail or county regional 
3.24 	jail and the county social services agency;
3.25 	(b) assess each prisoner upon entry into the jail or county regional jail using a 
3.26 	screening tool approved by the commissioner of corrections in consultation with the 
3.27 	commissioner of human services to identify prisoners with the characteristics listed in 
3.28 	subdivision 2, paragraph (a);
3.29 	(c) ensure prisoners who are identified with a positive screening and who will be 
3.30 	incarcerated for less than 30 days are offered follow-up care and referred to appropriate 
3.31 	professionals;
3.32 	(d) ensure prisoners who are identified as having a characteristic listed in subdivision 
3.33 	2, paragraph (a), and who will be incarcerated 30 days or longer, are provided with 
3.34 	appropriate treatment and programming including, but not limited to, mental health 
3.35 	treatment, counseling, living and employment skills development, substance abuse 
3.36 	treatment, GED and literacy training, and referrals to aftercare treatment and skills training;
4.1 	(e) offer to develop a discharge plan for prisoners identified as having a characteristic 
4.2 	listed in subdivision 2, paragraph (a), who will be incarcerated for 90 days or longer. 
4.3 	Discharge planning components must include:
4.4 	(1) at least 60 days prior to the prisoner's release, the person responsible for discharge 
4.5 	planning authorized by this section shall begin assisting the prisoner to establish, or 
4.6 	reestablish, benefits such as medical assistance, veterans' benefits, MinnesotaCare, general 
4.7 	assistance medical care, Social Security insurance, housing assistance, and submitting in 
4.8 	a timely manner a prisoner's application for any benefits for which the prisoner may 
4.9 	be eligible upon release;
4.10 	(2) obtaining informed consent and releases of information from the prisoner that 
4.11 	are needed for transition services, identifying treatment needs, referring the prisoner 
4.12 	to appropriate services in the community, and arranging for basic needs such as food, 
4.13 	housing, transportation, employment, and GED services;
4.14 	(3) securing appointments for a prisoner to be treated by a psychiatrist within 30 
4.15 	days of release, if appropriate;
4.16 	(4) securing appointments for a prisoner with a community mental health provider 
4.17 	and a chemical dependency provider within 30 days of release, if appropriate;
4.18 	(5) ensuring that the prisoner, when released from custody, has at least a 14-day 
4.19 	supply of all necessary medications, and a prescription for at least a 30-day supply of all 
4.20 	necessary medication that can be refilled once for an additional 30-day supply;
4.21 	(6) arranging for the prisoner to have a state photo identification card when released. 
4.22 	The identification card must not disclose the prisoner's incarceration or criminal record 
4.23 	and must list an address other than the address of the jail or county regional jail. The 
4.24 	identification card expires on the date of birth of the holder four years after the date of 
4.25 	issue; and
4.26 	(7) identifying prisoners who had a case manager prior to incarceration, and 
4.27 	maintaining contact with that case manager to provide service coordination for the 
4.28 	prisoner upon release. For prisoners without a case manager, making appropriate referrals 
4.29 	for case management services or offering to provide follow-up services to assist the 
4.30 	prisoner in obtaining stable housing, public benefits, and community services for up to 
4.31 	six months after release;
4.32 	(f) recording the number of prisoners identified under subdivision 2, paragraph (a), 
4.33 	and the number of prisoners who received federal benefits upon entry into the jail or 
4.34 	county regional jail; and
4.35 	(g) maintaining accurate records to complete the program evaluation.

5.1 	Sec. 4. DISCIPLINARY CONFINEMENT; PROTOCOL.
 5.2 	The commissioner of corrections shall develop a protocol that is fair, firm, 
5.3 	and consistent so that inmates have an opportunity to be released from disciplinary 
5.4 	confinement in a timely manner. For those inmates in disciplinary confinement who are 
5.5 	nearing their release date, the commissioner of corrections shall develop a reentry plan.

5.6 	Sec. 5. APPROPRIATIONS.
 5.7 		Subdivision 1.Grant program. $....... is appropriated from the general fund to 
5.8 	the commissioner of corrections for fiscal year 2008 and $....... for fiscal year 2009 to 
5.9 	administer the grant program established in section 3.
5.10 		Subd. 2.Discharge planning. $....... is appropriated from the general fund to 
5.11 	the commissioner of human services for fiscal year 2008 to fund discharge planning for 
5.12 	offenders with serious and persistent mental illness as defined in Minnesota Statutes, 
5.13 	section 245.462, subdivision 20, paragraph (c), who are pending release from correctional 
5.14 	facilities.
5.15 		Subd. 3.Mental health courts. $....... for fiscal year 2008 and $....... for fiscal 
5.16 	year 2009 are appropriated from the general fund to the Supreme Court to develop and 
5.17 	implement standards for mental health courts.
5.18 		Subd. 4.Crisis intervention training. $144,000 is appropriated in fiscal year 2008 
5.19 	from the general fund to the commissioner of public safety to fund grants to local police 
5.20 	departments to conduct crisis intervention training under section 1.

5.21 	ARTICLE 2
5.22 	CHILDREN'S MENTAL HEALTH

5.23 	Section 1. [245.4889] CHILDREN'S MENTAL HEALTH GRANTS.
5.24 		Subdivision 1.Establishment and authority. (a) The commissioner is authorized 
5.25 	to make grants from available appropriations to assist: 
5.26 	(1) counties;
5.27 	(2) Indian tribes;
5.28 	(3) children's collaboratives under section 124D.23 or 245.493; or 
5.29 	(4) mental health service providers
5.30 	in providing services to children with emotional disturbances as defined in section 
5.31 	245.4871, subdivision 15, and their families. The commissioner may also authorize grants 
6.1 	to assist young adults meeting the criteria for transition services in section 245.4875, 
6.2 	subdivision 8, and their families.
6.3 	(b) Services under paragraph (a) must be designed to help each child to function and 
6.4 	remain with the child's family in the community and must be delivered consistent with the 
6.5 	child's treatment plan. Transition services under paragraph (a) to eligible young adults 
6.6 	must be designed to foster independent living in the community.
6.7 		Subd. 2.Grant application and reporting requirements. To apply for a grant an 
6.8 	applicant organization shall submit an application and budget for the use of the money 
6.9 	in the form specified by the commissioner. The commissioner shall make grants only to 
6.10 	entities whose applications and budgets are approved by the commissioner. In awarding 
6.11 	grants, the commissioner shall give priority to those counties whose applications indicate 
6.12 	plans to collaborate in the development, funding, and delivery of services with other 
6.13 	agencies in the local system of care. The commissioner shall specify requirements for 
6.14 	reports, including quarterly fiscal reports under section 256.01, subdivision 2, paragraph 
6.15 	(q). The commissioner shall require collection of data and periodic reports that the 
6.16 	commissioner deems necessary to demonstrate the effectiveness of each service.

6.17 	Sec. 2. [245A.175] MENTAL HEALTH TRAINING REQUIREMENT.
6.18 	Prior to the placement of a child in a foster care home, the child foster care provider, 
6.19 	if required to be licensed, must complete two hours of training that addresses the causes, 
6.20 	symptoms, and key warning signs of mental health disorders; cultural considerations; and 
6.21 	effective approaches for dealing with a child's behaviors. At least one hour of the annual 
6.22 	12-hour training requirement for foster parents must be on children's mental health issues 
6.23 	and treatment. Training curriculum shall be approved by the commissioner of human 
6.24 	services.

6.25 	Sec. 3. [256.9961] COLLABORATIVE SERVICES FOR HIGH-RISK 
6.26 	CHILDREN.
6.27 	To provide early intervention collaborative services to children who are at high risk 
6.28 	for child maltreatment, substance use, mental illness, and serious and violent offending, 
6.29 	but not subject to the delinquency provisions of chapter 260B, the commissioner of human 
6.30 	services shall fund one or more projects that identify and serve these children. The 
6.31 	projects shall include the following program components:
6.32 	(1) multidimensional screening instruments;
6.33 	(2) multidisciplinary and multijurisdictional collaborative services;
6.34 	(3) integrated information systems;
7.1 	(4) intensive in-home and community casework;
7.2 	(5) continuous tracking of outcomes; and
7.3 	(6) multidimensional evaluations and cost-benefit analysis.
7.4 	Projects must use all available funding streams.

7.5 	Sec. 4. Minnesota Statutes 2006, section 256B.0943, is amended by adding a 
7.6 	subdivision to read:
7.7 		Subd. 14.Rate increase for children's therapeutic services and support. For 
7.8 	services defined in clauses (1) and (2) rendered on or after July 1, 2007, payment rates 
7.9 	shall be increased by 33.7 percent over the rates in effect on January 1, 2006, for:
7.10 	(1) services when provided as a component of children's therapeutic services and 
7.11 	support including, but not limited to, individual and group skills training, individual and 
7.12 	group psychotherapy, and provider travel; and
7.13 	(2) diagnostic assessments of children and adolescents.
7.14 	The commissioner shall adjust rates paid to prepaid health plans under contract with 
7.15 	the commissioner to reflect the rate increases provided in clauses (1) and (2). The prepaid 
7.16 	health plans must pass this rate increase to the providers of the services identified in 
7.17 	clauses (1) and (2). 

7.18 	Sec. 5. CHILDREN'S MENTAL HEALTH WORK GROUP; REPORT.
 7.19 	The commissioner of human services shall convene a work group to study the unmet 
7.20 	need for children's mental health wraparound services, and determine what components of 
7.21 	wraparound services are currently being funded, and what components need to be funded 
7.22 	in order to provide comprehensive funding of wraparound services, to address the needs 
7.23 	of children diagnosed with an emotional disturbance or a severe emotional disturbance. In 
7.24 	addition to a representative from the Department of Human Services, the work group shall 
7.25 	consist of representatives from the Department of Health, the Department of Education, 
7.26 	organizations that provide or advocate for children's mental health services, and county 
7.27 	representatives.  The commissioner shall report the results of the work group's findings and 
7.28 	recommendations to the chairs of the house and senate committees with jurisdiction over 
7.29 	children's mental health issues no later than January 15, 2008.

7.30 	Sec. 6. TRAUMA-FOCUSED, EVIDENCE-BASED PRACTICES TO 
7.31 	CHILDREN.
 7.32 	The commissioner of human services shall provide grants to organizations that 
7.33 	provide trauma-focused, evidence-based services to children. Organizations that are 
8.1 	certified to provide children's therapeutic services and support under Minnesota Statutes, 
8.2 	section 256B.0943, are eligible to apply for a grant to provide services to children 
8.3 	who have been exposed to violence or are refugees. Grants are to be used to provide 
8.4 	trauma-focused, evidence-based practices to children who are living in a battered women's 
8.5 	shelter, homeless shelter, transitional housing, or supported housing. Children served must 
8.6 	have been exposed to or witnessed domestic violence, have been exposed to or witnessed 
8.7 	community violence, or be a refugee. Priority shall be given to organizations that 
8.8 	demonstrate collaboration with battered women's shelters, homeless shelters, or providers 
8.9 	of transitional housing or supported housing. The commissioner shall specify what 
8.10 	constitutes evidence-based practice. Organizations shall use all available funding streams.

8.11 	Sec. 7. RESPITE CARE.
 8.12 	(a) The commissioner of human services shall allocate amounts for respite care 
8.13 	funding to counties based on population. Counties shall be reimbursed for the costs of 
8.14 	respite care for families with a child who has a severe emotional disturbance. Total 
8.15 	reimbursement shall not exceed the county's allocation. Any funds not used by a county 
8.16 	may be reallocated to other counties.
8.17 	(b) Funds allocated under paragraph (a) may be used for day, night, overnight, and 
8.18 	summer or vacation respite care. Funds may be used for in-home or out-of-home respite 
8.19 	care.
8.20 	(c) Up to 25 percent of the funds allocated under paragraph (a) in the first year may 
8.21 	be use to recruit, train, and support respite care providers.
8.22 	(d) The commissioner shall convene a work group composed of stakeholders to 
8.23 	determine:
8.24 	(1) how funds in subsequent years may be used;
8.25 	(2) how funds shall be disbursed to counties;
8.26 	(3) who is eligible to provide respite care;
8.27 	(4) how families access respite care;
8.28 	(5) how respite care rates will be established; and
8.29 	(6) what outcome data will be collected.
8.30 	The work group shall also examine how to use existing tools to determine difficulty of 
8.31 	care rates.

8.32 	Sec. 8. APPROPRIATIONS.
 8.33 		Subdivision 1.Evidence-based practice. $....... in fiscal year 2008 and $....... in 
8.34 	fiscal year 2009 are appropriated from the general fund to the commissioner of human 
9.1 	services to develop and implement evidence-based practice in children's mental health 
9.2 	care and treatment.
9.3 		Subd. 2.Early intervention collaborative programs. $....... in fiscal year 2008 
9.4 	and $....... in fiscal year 2009 are appropriated from the general fund to the commissioner 
9.5 	of human services to fund the early intervention collaborative programs in section 3.
9.6 		Subd. 3.Childhood trauma; grants. $....... in fiscal year 2008 and $....... in fiscal 
9.7 	year 2009 are appropriated from the general fund to the commissioner of human services 
9.8 	to make grants for the purpose of maintaining and expanding evidence-based practices 
9.9 	under section 6 that support children and youth who have been exposed to violence or 
9.10 	who are refugees.
9.11 		Subd. 4.Respite care. $....... in fiscal year 2008 is appropriated from the general 
9.12 	fund to the commissioner of human services to fund respite care for children under section 
9.13 	7 who have a diagnosis of emotional disturbance or severe emotional disturbance.

9.14 	ARTICLE 3
9.15 	MISCELLANEOUS

9.16 	Section 1. [144.206] LOAN FORGIVENESS PROGRAM.
9.17 		Subdivision 1.Establishment. A loan forgiveness program account is established. 
9.18 	The commissioner of health shall use money from the account to establish a loan 
9.19 	forgiveness program for individuals who are employed by a nonprofit agency that provides 
9.20 	mental health services for cultural or ethnic minority clients.
9.21 	Appropriations made to the account do not cancel and are available until expended, 
9.22 	except that at the end of the biennium, any remaining balance in the account that is not 
9.23 	committed by contract and is not needed to fulfill existing commitments shall cancel to 
9.24 	the fund.
9.25 		Subd. 2.Definition. For the purposes of this section, "qualified educational loan" 
9.26 	means a government, commercial, or foundation loan for actual costs paid for tuition, 
9.27 	reasonable education expenses, and reasonable living expenses related to the graduate 
9.28 	education of a mental health professional.
9.29 		Subd. 3.Eligibility. To be eligible to participate in the loan forgiveness program, an 
9.30 	individual must be employed by a nonprofit agency that provides mental health services 
9.31 	for cultural or ethnic minority clients and must be of the same culture or ethnicity as 
9.32 	the clients. An applicant selected to participate must sign a contract agreeing to remain 
10.1 	employed with the nonprofit agency for a three-year full-time term, which shall begin no 
10.2 	later than 30 days following completion of the required training.
10.3 	The commissioner may select applicants each year for participation in the loan 
10.4 	forgiveness program, within the limits of available funding. Applicants are responsible for 
10.5 	securing their own qualified educational loans. The commissioner shall select participants 
10.6 	based on their suitability for practice serving the required cultural or ethnic minority 
10.7 	population. The commissioner shall give preference to applicants closest to completing 
10.8 	their education.
10.9 		Subd. 4.Disbursements. For each year that a participant meets the service 
10.10 	obligation required under subdivision 3, the commissioner shall make annual 
10.11 	disbursements directly to the participant equivalent to 25 percent of the participant's loan 
10.12 	indebtedness, not to exceed the balance of the participant's qualifying educational loans. 
10.13 	Before receiving loan repayment disbursements, and as requested, the participant and the 
10.14 	employer must complete and return to the commissioner an affidavit of practice form 
10.15 	provided by the commissioner verifying that the participant is practicing as required under 
10.16 	subdivision 3. The participant must provide the commissioner with verification that the full 
10.17 	amount of the loan repayment disbursement received by the participant has been applied 
10.18 	toward the designated loans. After each disbursement, verification must be received by 
10.19 	the commissioner and approved before the next loan repayment disbursement is made.
10.20 	If a participant does not fulfill the minimum commitment of service under 
10.21 	subdivision 3, the commissioner shall collect from the participant the full amount paid 
10.22 	to the participant under the loan forgiveness program plus interest at the rate established 
10.23 	under section 270C.40. The commissioner shall deposit the money collected in the 
10.24 	general fund. The commissioner shall allow waivers of all or part of the money owed 
10.25 	the commissioner as a result of nonfulfillment if emergency circumstances prevented 
10.26 	fulfillment of the minimum service commitment.

10.27 	Sec. 2. Minnesota Statutes 2006, section 245.4712, subdivision 1, is amended to read:
10.28 		Subdivision 1.Availability of community support services. (a) County boards 
10.29 	must provide or contract for sufficient community support services within the county to 
10.30 	meet the needs of adults with serious and persistent mental illness who are residents of 
10.31 	the county, and adults who are having an acute episode, regardless of insurance status. 
10.32 	Adults may be required to pay a fee according to section 245.481. The community 
10.33 	support services program must be designed to improve the ability of adults with serious 
10.34 	and persistent mental illness to: 
10.35 	(1) work in a regular or supported work environment;
11.1 	(2) handle basic activities of daily living;
11.2 	(3) participate in leisure time activities;
11.3 	(4) set goals and plans; and
11.4 	(5) obtain and maintain appropriate living arrangements.
11.5 	The community support services program must also be designed to promote mental 
11.6 	health stabilization and increase functioning, and reduce the need for and use of more 
11.7 	intensive, costly, or restrictive placements both in number of admissions and length of stay.
11.8 	(b) Community support services are those services that are supportive in nature and 
11.9 	not necessarily treatment-oriented, and include:
11.10 	(1) assessing and monitoring mental health symptoms;
11.11 	(2) conducting outreach activities such as home visits, health and wellness checks, 
11.12 	illness education, problem solving, and accompanying people to medical appointments 
11.13 	and other meetings;
11.14 	(3) connecting people to resources to meet their basic needs;
11.15 	(4) finding, securing, and helping people maintain housing;
11.16 	(5) attaining and maintaining health insurance benefits;
11.17 	(6) assisting with finding and maintaining employment and securing a stable 
11.18 	financial situation;
11.19 	(7) fostering social support, including support groups, mentoring, peer support, and 
11.20 	other efforts to prevent isolation and promote recovery;
11.21 	(8) educating about mental illness, treatment, and recovery; and
11.22 	(9) connecting with individuals who have mental illness, health care providers, and 
11.23 	treatment programs to prevent the use of crisis services or hospital emergency departments.
11.24 	(c) Community support services shall use all available funding streams. The county 
11.25 	shall maintain the level of expenditures for this program, as required under section 
11.26 	245.4835. County boards must continue to provide funds for those services not covered 
11.27 	by other funding streams and to maintain an infrastructure to carry out these services.
11.28 	(d) The commissioner shall collect data on community support services programs, 
11.29 	including, but not limited to, demographic information such as age, sex, race, the number 
11.30 	of people served, and information related to housing, employment, hospitalization, 
11.31 	symptoms, and satisfaction with services.

11.32 	Sec. 3. Minnesota Statutes 2006, section 245.50, subdivision 5, is amended to read:
11.33 		Subd. 5.Special contracts; bordering states. (a) An individual who is detained, 
11.34 	committed, or placed on an involuntary basis under chapter 253B may be confined or 
11.35 	treated in a bordering state pursuant to a contract under this section. An individual who is 
12.1 	detained, committed, or placed on an involuntary basis under the civil law of a bordering 
12.2 	state may be confined or treated in Minnesota pursuant to a contract under this section. A 
12.3 	peace or health officer who is acting under the authority of the sending state may transport 
12.4 	an individual to a receiving agency that provides services pursuant to a contract under 
12.5 	this section and may transport the individual back to the sending state under the laws 
12.6 	of the sending state. Court orders valid under the law of the sending state are granted 
12.7 	recognition and reciprocity in the receiving state for individuals covered by a contract 
12.8 	under this section to the extent that the court orders relate to confinement for treatment 
12.9 	or care of mental illness or chemical dependency. Such treatment or care may address 
12.10 	other conditions that may be co-occurring with the mental illness or chemical dependency. 
12.11 	These court orders are not subject to legal challenge in the courts of the receiving state. 
12.12 	Individuals who are detained, committed, or placed under the law of a sending state and 
12.13 	who are transferred to a receiving state under this section continue to be in the legal 
12.14 	custody of the authority responsible for them under the law of the sending state. Except 
12.15 	in emergencies, those individuals may not be transferred, removed, or furloughed from 
12.16 	a receiving agency without the specific approval of the authority responsible for them 
12.17 	under the law of the sending state.
12.18 	(b) While in the receiving state pursuant to a contract under this section, an 
12.19 	individual shall be subject to the sending state's laws and rules relating to length of 
12.20 	confinement, reexaminations, and extensions of confinement. No individual may be sent 
12.21 	to another state pursuant to a contract under this section until the receiving state has 
12.22 	enacted a law recognizing the validity and applicability of this section.
12.23 	(c) If an individual receiving services pursuant to a contract under this section leaves 
12.24 	the receiving agency without permission and the individual is subject to involuntary 
12.25 	confinement under the law of the sending state, the receiving agency shall use all 
12.26 	reasonable means to return the individual to the receiving agency. The receiving agency 
12.27 	shall immediately report the absence to the sending agency. The receiving state has the 
12.28 	primary responsibility for, and the authority to direct, the return of these individuals 
12.29 	within its borders and is liable for the cost of the action to the extent that it would be 
12.30 	liable for costs of its own resident.
12.31 	(d) Responsibility for payment for the cost of care remains with the sending agency.
12.32 	(e) This subdivision also applies to county contracts under subdivision 2 which 
12.33 	include emergency care and treatment provided to a county resident in a bordering state.
12.34 	(f) If a Minnesota resident is admitted to a receiving agency in a bordering state 
12.35 	under this chapter, a physician, licensed psychologist who has a doctoral degree in 
12.36 	psychology, or an advance practice registered nurse certified in mental health, and who is 
13.1 	licensed in the bordering state, may act as an examiner under sections 253B.07, 253B.08, 
13.2 	253B.092, 253B.12, and 253B.17, subject to the same requirements and limitations in 
13.3 	section 253B.02, subdivision 7.

13.4 	Sec. 4. [245.6961] CULTURALLY COMPETENT MENTAL HEALTH 
13.5 	SERVICES GRANTS.
13.6 		Subdivision 1.Services. The commissioner shall make grants to nonprofit 
13.7 	organizations to ensure that culturally competent mental health services are provided to 
13.8 	individuals throughout the state. The grants are intended to provide direct services and 
13.9 	to serve as a bridge to existing mental health providers and organizations that reflect the 
13.10 	community they serve. The grants may be used to:
13.11 	(1) provide services and support to low-income families from different cultures;
13.12 	(2) provide technical assistance to mental health and health care providers who have 
13.13 	clients in need of culturally appropriate services;
13.14 	(3) translate information for patients and their families;
13.15 	(4) colocate services at clinics, schools, and other locations;
13.16 	(5) provide services and support using telemedicine to reach families in need of 
13.17 	information and support in communities where there are no culturally specific providers; 
13.18 	and
13.19 	(6) provide culturally specific support services.
13.20 		Subd. 2.Grants. The commissioner shall determine grantees through a request 
13.21 	for proposal process and, in consultation with mental health advocates, develop grantee 
13.22 	eligibility requirements, services, and outcome measures.

13.23 	Sec. 5. Minnesota Statutes 2006, section 256D.03, subdivision 3, is amended to read:
13.24 		Subd. 3.General assistance medical care; eligibility. (a) General assistance 
13.25 	medical care may be paid for any person who is not eligible for medical assistance under 
13.26 	chapter 256B, including eligibility for medical assistance based on a spenddown of excess 
13.27 	income according to section 256B.056, subdivision 5, or MinnesotaCare as defined in 
13.28 	paragraph (b), except as provided in paragraph (c), and:
13.29 	(1) who is receiving assistance under section 256D.05, except for families with 
13.30 	children who are eligible under Minnesota family investment program (MFIP), or who is 
13.31 	having a payment made on the person's behalf under sections 256I.01 to 256I.06; or
13.32 	(2) who is a resident of Minnesota; and
13.33 	(i) who has gross countable income not in excess of 75 percent of the federal poverty 
13.34 	guidelines for the family size, using a six-month budget period and whose equity in assets 
14.1 	is not in excess of $1,000 per assistance unit. General assistance medical care is not 
14.2 	available for applicants or enrollees who are otherwise eligible for medical assistance but 
14.3 	fail to verify their assets. Enrollees who become eligible for medical assistance shall be 
14.4 	terminated and transferred to medical assistance. Exempt assets, the reduction of excess 
14.5 	assets, and the waiver of excess assets must conform to the medical assistance program in 
14.6 	section 256B.056, subdivision 3, with the following exception: the maximum amount of 
14.7 	undistributed funds in a trust that could be distributed to or on behalf of the beneficiary by 
14.8 	the trustee, assuming the full exercise of the trustee's discretion under the terms of the 
14.9 	trust, must be applied toward the asset maximum;
14.10 	(ii) who has gross countable income above 75 percent of the federal poverty 
14.11 	guidelines but not in excess of 175 percent of the federal poverty guidelines for the 
14.12 	family size, using a six-month budget period, whose equity in assets is not in excess 
14.13 	of the limits in section 256B.056, subdivision 3c, and who applies during an inpatient 
14.14 	hospitalization; or
14.15 	(iii) the commissioner shall adjust the income standards under this section each July 
14.16 	1 by the annual update of the federal poverty guidelines following publication by the 
14.17 	United States Department of Health and Human Services.
14.18 	(b) Effective for applications and renewals processed on or after September 1, 2006, 
14.19 	general assistance medical care may not be paid for applicants or recipients who are adults 
14.20 	with dependent children under 21 whose gross family income is equal to or less than 275 
14.21 	percent of the federal poverty guidelines who are not described in paragraph (e).
14.22 	(c) Effective for applications and renewals processed on or after September 1, 2006, 
14.23 	general assistance medical care may be paid for applicants and recipients who meet all 
14.24 	eligibility requirements of paragraph (a), clause (2), item (i), for a temporary period 
14.25 	beginning the date of application. Immediately following approval of general assistance 
14.26 	medical care, enrollees shall be enrolled in MinnesotaCare under section 256L.04, 
14.27 	subdivision 7, with covered services as provided in section 256L.03 for the rest of the 
14.28 	six-month eligibility period, until their six-month renewal.
14.29 	(d) To be eligible for general assistance medical care following enrollment in 
14.30 	MinnesotaCare as required by paragraph (c), an individual must complete a new 
14.31 	application.
14.32 	(e) Applicants and recipients eligible under paragraph (a), clause (1); who have 
14.33 	applied for and are awaiting a determination of blindness or disability by the state medical 
14.34 	review team or a determination of eligibility for Supplemental Security Income or Social 
14.35 	Security Disability Insurance by the Social Security Administration; who fail to meet the 
14.36 	requirements of section 256L.09, subdivision 2;  who are classified as end-stage renal 
15.1 	disease beneficiaries in the Medicare program; who are enrolled in private health care 
15.2 	coverage as defined in section 256B.02, subdivision 9; who are eligible under paragraph 
15.3 	(j); or who receive treatment funded pursuant to section 254B.02 are exempt from the 
15.4 	MinnesotaCare enrollment requirements of this subdivision.
15.5 	(f) For applications received on or after October 1, 2003, eligibility may begin no 
15.6 	earlier than the date of application. For individuals eligible under paragraph (a), clause 
15.7 	(2), item (i), a redetermination of eligibility must occur every 12 months. Individuals are 
15.8 	eligible under paragraph (a), clause (2), item (ii), only during inpatient hospitalization but 
15.9 	may reapply if there is a subsequent period of inpatient hospitalization.
15.10 	(g) Beginning September 1, 2006, Minnesota health care program applications and 
15.11 	renewals completed by recipients and applicants who are persons described in paragraph 
15.12 	(c) and submitted to the county agency shall be determined for MinnesotaCare eligibility 
15.13 	by the county agency. If all other eligibility requirements of this subdivision are met, 
15.14 	eligibility for general assistance medical care shall be available in any month during which 
15.15 	MinnesotaCare enrollment is pending. Upon notification of eligibility for MinnesotaCare, 
15.16 	notice of termination for eligibility for general assistance medical care shall be sent to 
15.17 	an applicant or recipient. If all other eligibility requirements of this subdivision are 
15.18 	met, eligibility for general assistance medical care shall be available until enrollment in 
15.19 	MinnesotaCare subject to the provisions of paragraphs (c), (e), and (f).
15.20 	(h) The date of an initial Minnesota health care program application necessary to 
15.21 	begin a determination of eligibility shall be the date the applicant has provided a name, 
15.22 	address, and Social Security number, signed and dated, to the county agency or the 
15.23 	Department of Human Services. If the applicant is unable to provide a name, address, 
15.24 	Social Security number, and signature when health care is delivered due to a medical 
15.25 	condition or disability, a health care provider may act on an applicant's behalf to establish 
15.26 	the date of an initial Minnesota health care program application by providing the county 
15.27 	agency or Department of Human Services with provider identification and a temporary 
15.28 	unique identifier for the applicant. The applicant must complete the remainder of the 
15.29 	application and provide necessary verification before eligibility can be determined. The 
15.30 	county agency must assist the applicant in obtaining verification if necessary.
15.31 	(i) County agencies are authorized to use all automated databases containing 
15.32 	information regarding recipients' or applicants' income in order to determine eligibility for 
15.33 	general assistance medical care or MinnesotaCare. Such use shall be considered sufficient 
15.34 	in order to determine eligibility and premium payments by the county agency.
15.35 	(j) General assistance medical care is not available for a person in a correctional 
15.36 	facility unless the person is detained by law for less than one year in a county correctional 
16.1 	or detention facility as a person accused or convicted of a crime, or admitted as an 
16.2 	inpatient to a hospital on a criminal hold order, and the person is a recipient of general 
16.3 	assistance medical care at the time the person is detained by law or admitted on a criminal 
16.4 	hold order and as long as the person continues to meet other eligibility requirements 
16.5 	of this subdivision.
16.6 	(k) General assistance medical care is not available for applicants or recipients who 
16.7 	do not cooperate with the county agency to meet the requirements of medical assistance.
16.8 	(l) In determining the amount of assets of an individual eligible under paragraph 
16.9 	(a), clause (2), item (i), there shall be included any asset or interest in an asset, including 
16.10 	an asset excluded under paragraph (a), that was given away, sold, or disposed of for 
16.11 	less than fair market value within the 60 months preceding application for general 
16.12 	assistance medical care or during the period of eligibility. Any transfer described in this 
16.13 	paragraph shall be presumed to have been for the purpose of establishing eligibility for 
16.14 	general assistance medical care, unless the individual furnishes convincing evidence to 
16.15 	establish that the transaction was exclusively for another purpose. For purposes of this 
16.16 	paragraph, the value of the asset or interest shall be the fair market value at the time it 
16.17 	was given away, sold, or disposed of, less the amount of compensation received. For any 
16.18 	uncompensated transfer, the number of months of ineligibility, including partial months, 
16.19 	shall be calculated by dividing the uncompensated transfer amount by the average monthly 
16.20 	per person payment made by the medical assistance program to skilled nursing facilities 
16.21 	for the previous calendar year. The individual shall remain ineligible until this fixed period 
16.22 	has expired. The period of ineligibility may exceed 30 months, and a reapplication for 
16.23 	benefits after 30 months from the date of the transfer shall not result in eligibility unless 
16.24 	and until the period of ineligibility has expired. The period of ineligibility begins in the 
16.25 	month the transfer was reported to the county agency, or if the transfer was not reported, 
16.26 	the month in which the county agency discovered the transfer, whichever comes first. For 
16.27 	applicants, the period of ineligibility begins on the date of the first approved application.
16.28 	(m) When determining eligibility for any state benefits under this subdivision, 
16.29 	the income and resources of all noncitizens shall be deemed to include their sponsor's 
16.30 	income and resources as defined in the Personal Responsibility and Work Opportunity 
16.31 	Reconciliation Act of 1996, title IV, Public Law 104-193, sections 421 and 422, and 
16.32 	subsequently set out in federal rules.
16.33 	(n) Undocumented noncitizens and nonimmigrants are ineligible for general 
16.34 	assistance medical care. For purposes of this subdivision, a nonimmigrant is an individual 
16.35 	in one or more of the classes listed in United States Code, title 8, section 1101(a)(15), and 
17.1 	an undocumented noncitizen is an individual who resides in the United States without the 
17.2 	approval or acquiescence of the Immigration and Naturalization Service.
17.3 	(o) Notwithstanding any other provision of law, a noncitizen who is ineligible for 
17.4 	medical assistance due to the deeming of a sponsor's income and resources, is ineligible 
17.5 	for general assistance medical care.
17.6 	(p) Effective July 1, 2003, general assistance medical care emergency services end.
17.7 	(q) Effective July 1, 2007, individuals in a correctional facility who have been 
17.8 	diagnosed with a mental illness as defined in section 245.462, subdivision 20, are 
17.9 	eligible for general assistance medical care for three months from the date of release 
17.10 	from confinement.

17.11 	Sec. 6. MINNESOTA FAMILY INVESTMENT PROGRAM AND CHILDREN'S 
17.12 	MENTAL HEALTH PILOT PROJECT.
 17.13 		Subdivision 1.Pilot project authorized. The commissioner of human services 
17.14 	shall fund a three-year pilot project to measure the effect of children's identified mental 
17.15 	health needs, including social and emotional needs, on Minnesota family investment 
17.16 	program (MFIP) participants' ability to obtain and retain employment. The project shall 
17.17 	also measure the effect on meeting work activity requirements of MFIP participants' needs 
17.18 	to address their children's identified mental health needs.
17.19 		Subd. 2.Provider and agency proposals. (a) Interested MFIP employment and 
17.20 	training service providers and agencies shall: 
17.21 	(1) submit proposals defining how they will identify participants whose children 
17.22 	have mental health needs that hinder the employment process; 
17.23 	(2) connect families with appropriate developmental, social, and emotional 
17.24 	screenings and services; and 
17.25 	(3) incorporate those services into the participant's employment plan.
17.26 	Each proposal under this paragraph must include an evaluation component.
17.27 	(b) Interested MFIP employment and training service providers and agencies shall 
17.28 	develop a protocol to inform MFIP participants of the following: 
17.29 	(1) the availability of developmental, social, and emotional screening tools for 
17.30 	children and youth; 
17.31 	(2) the purpose of the screenings; 
17.32 	(3) how the information will be used to assist the participants in identifying and 
17.33 	addressing potential barriers to employment; and 
17.34 	(4) that their employment plan may be modified based on the screening results.
18.1 		Subd. 3.Program components. (a) MFIP employment and training service 
18.2 	providers shall obtain the participant's written consent for participation in the pilot project, 
18.3 	including consent for developmental, social, and emotional screening.
18.4 	(b) MFIP employment and training service providers shall coordinate with county 
18.5 	social service agencies and health plans to assist recipients in arranging referrals indicated 
18.6 	by the screening results.
18.7 	(c) Tools used for developmental, social, and emotional screenings shall be approved 
18.8 	by the commissioner of human services.
18.9 		Subd. 4.Program evaluation. (a) The commissioner of human services shall 
18.10 	conduct an evaluation of the pilot project to determine:
18.11 	(1) the number of participants who took part in the screening;
18.12 	(2) the number of children who were screened and what screening tools were used;
18.13 	(3) the number of children who were identified in the screening who needed referral 
18.14 	or follow-up services;
18.15 	(4) the number of children who received services, what agency provided the services, 
18.16 	and what type of services were provided;
18.17 	(5) the number of employment plans that were adjusted to include the activities 
18.18 	recommended in the screenings;
18.19 	(6) the changes in work participation rates;
18.20 	(7) the changes in earned income;
18.21 	(8) the changes in sanction rates; and
18.22 	(9) the participants' report of program effectiveness.
18.23 	(b) The evaluation is due to the legislature by January 15, 2011.
18.24 		Subd. 5.Work activity. Participant involvement in screenings and subsequent 
18.25 	referral and follow-up services shall count as work activity under Minnesota Statutes, 
18.26 	section 256J.49, subdivision 13.

18.27 	Sec. 7. EVIDENCE-BASED PRACTICE.
 18.28 	The commissioner of human services shall consult with stakeholder groups to 
18.29 	examine possible budget-neutral changes that include and support evidence-based 
18.30 	practices. The commissioner has the authority to make budget-neutral changes to medical 
18.31 	assistance coverage and benefits to implement evidence-based practices as defined by the 
18.32 	Agency for Healthcare Research and Quality Practice Guidelines, and the Substance 
18.33 	Abuse and Mental Health Services Administration.

18.34 	Sec. 8. TELEHEALTH.
 19.1 		Subdivision 1.Office of Enterprise Technology. The Office of Enterprise 
19.2 	Technology, in consultation with the commissioner of human services, shall provide 
19.3 	interconnectivity, bridging, or gateway for televideo conferencing at no cost to the 
19.4 	providers between:
19.5 	(1) state and county agency sites; and
19.6 	(2) community provider sites or association of community providers sites.
19.7 		Subd. 2.Eligibility. Community providers eligible for the televideo conferencing 
19.8 	are those enrolled as medical assistance providers under Minnesota Statutes, section 
19.9 	256B.0625, subdivision 5, or under contract with counties to provide services under 
19.10 	Minnesota Statutes, sections 245.461 to 245.486, the Minnesota Comprehensive Adult 
19.11 	Mental Health Act; Minnesota Statutes, sections 245.4712 to 245.4861, community 
19.12 	support and day treatment services; or Minnesota Statutes, sections 245.487 to 245.4887, 
19.13 	the Minnesota Comprehensive Children's Mental Health Act.

19.14 	Sec. 9. DUAL DIAGNOSIS.
 19.15 	The commissioner of human services shall fund up to three programs, within the 
19.16 	available appropriation, that provide services for high-risk adults with serious mental 
19.17 	illness and co-occurring substance abuse problems. The services must include, but not be 
19.18 	limited to, the following:
19.19 	(1) housing services, including rent or housing subsidies, housing with clinical 
19.20 	staff, or housing support;
19.21 	(2) assertive outreach services; and
19.22 	(3) intensive direct therapeutic, rehabilitative, and care management services 
19.23 	oriented to harm reduction.
19.24 	The commissioner shall work with housing providers to ensure proper licensure or 
19.25 	certification to meet medical assistance or third-party payor reimbursement requirements.

19.26 	Sec. 10. HIGHER EDUCATION STUDENT HEALTH INSURANCE 
19.27 	PROGRAM.
 19.28 	The commissioner of human services shall explore, in consultation with the Office 
19.29 	of Higher Education, and provide to the legislature, different options for ensuring that 
19.30 	all full-time and part-time students enrolled in a public or private institution of higher 
19.31 	education in the state are participating in a qualifying student health insurance program 
19.32 	or are covered under another health insurance plan. The commissioner shall determine 
19.33 	how institutions of higher education will monitor student participation and require each 
19.34 	institution to provide documentation to determine if the institution is complying with the 
20.1 	mandatory health insurance program requirements. The commissioner shall also propose 
20.2 	exceptions to the requirement for students who do not have insurance coverage due to 
20.3 	religious beliefs. The commissioner must recommend in the report to the legislature a 
20.4 	penalty for institutions that fail to carry out the responsibilities of the mandatory student 
20.5 	health insurance program. The commissioner shall also provide in the report to the 
20.6 	legislature an analysis of the number of higher education students in the state who are 
20.7 	lacking health insurance, and the costs to the students and the institutions of providing a 
20.8 	qualifying student health insurance program, or requiring the students to enroll in other 
20.9 	available health insurance, and the costs of monitoring student compliance with the 
20.10 	program. The commissioner shall also include a proposed method of meeting those costs.
20.11 	The analysis, report, and draft legislation are due to the legislative committees having 
20.12 	jurisdiction over higher education issues and health care issues by January 15, 2008.

20.13 	Sec. 11. APPROPRIATIONS.
 20.14 		Subd. 1.Community mental health programs. $....... is appropriated in fiscal year 
20.15 	2008 from the general fund to the commissioner of human services to contract for training 
20.16 	and consultation for clinical supervisors and staff of community mental health centers who 
20.17 	provide services to children and adults. The purpose of the training and consultation is to 
20.18 	improve clinical supervision of staff, strengthen compliance with federal and state rules 
20.19 	and regulations, and to recommend strategies for standardization and simplification of 
20.20 	administrative functions among community mental health centers.
20.21 		Subd. 2.Suicide intervention and prevention grant. $....... in fiscal year 2008 and 
20.22 	$....... in fiscal year 2009 are appropriated from the general fund to the commissioner of 
20.23 	human services for grants for institutions of higher education in the state of Minnesota to 
20.24 	coordinate implementation of youth suicide early intervention and prevention strategies.
20.25 		Subd. 3.Culturally competent mental health services grants. $....... in fiscal 
20.26 	year 2008 and $....... in fiscal year 2009 are appropriated from the general fund to the 
20.27 	commissioner of human services for development and implementation of grants for 
20.28 	culturally competent mental health services under section 4.
20.29 		Subd. 4.Bridges rental housing assistance program. $3,400,000 in fiscal year 
20.30 	2008 and $3,400,000 in fiscal year 2009 are appropriated from the general fund to the 
20.31 	Housing Finance Agency for the Bridges rental housing assistance program under 
20.32 	Minnesota Statutes, section 462A.2097. These appropriations are in addition to any base 
20.33 	appropriations for this purpose and shall become part of the agency's base.
21.1 		Subd. 5.MFIP and children's mental health pilot project. $....... in fiscal 
21.2 	year 2008 and $....... in fiscal year 2009 are appropriated from the general fund to the 
21.3 	commissioner of human services to fund the pilot project under section 6.
21.4 		Subd. 6.Televideo conferencing. $....... in fiscal year 2008 and $....... in fiscal year 
21.5 	2009 are appropriated from the general fund to the Office of Enterprise Technology to 
21.6 	provide televideo conferencing under section 8.
21.7 		Subd. 7.Dual diagnosis; demonstration project. $....... in fiscal year 2008 and 
21.8 	$....... in fiscal year 2009 are appropriated from the general fund to the commissioner of 
21.9 	human services to fund the demonstration projects under section 9.

21.10 	ARTICLE 4
21.11 	MENTAL HEALTH FUNDING

21.12 	Section 1. Minnesota Statutes 2006, section 256B.038, is amended to read:
21.13 	256B.038 PROVIDER RATE INCREASES AFTER JUNE 30, 1999.
21.14 	(a) For fiscal years beginning on or after July 1, 1999, the commissioner of finance 
21.15 	shall include an annual inflationary adjustment in payment rates for the services listed 
21.16 	in paragraph (b) as a budget change request in each biennial detailed expenditure budget 
21.17 	submitted to the legislature under section 16A.11. The adjustment shall be accomplished 
21.18 	by indexing the rates in effect for inflation based on the change in the Consumer Price 
21.19 	Index-All Items (United States city average)(CPI-U) as forecasted by Data Resources, 
21.20 	Inc., in the fourth quarter of the prior year for the calendar year during which the rate 
21.21 	increase occurs. 
21.22 	(b) Within the limits of appropriations specifically for this purpose, the commissioner 
21.23 	shall apply the rate increases in paragraph (a) to home and community-based waiver 
21.24 	services for persons with developmental disabilities under section 256B.501; home and 
21.25 	community-based waiver services for the elderly under section 256B.0915; waivered 
21.26 	services under community alternatives for disabled individuals under section 256B.49; 
21.27 	community alternative care waivered services under section 256B.49; traumatic brain 
21.28 	injury waivered services under section 256B.49; nursing services and home health services 
21.29 	under section 256B.0625, subdivision 6a; personal care services and nursing supervision 
21.30 	of personal care services under section 256B.0625, subdivision 19a; private duty nursing 
21.31 	services under section 256B.0625, subdivision 7; day training and habilitation services 
21.32 	for adults with developmental disabilities under sections 252.40 to 252.46; physical 
21.33 	therapy services under sections 256B.0625, subdivision 8, and 256D.03, subdivision 4; 
21.34 	occupational therapy services under sections 256B.0625, subdivision 8a, and 256D.03, 
22.1 	subdivision 4; speech-language therapy services under section 256D.03, subdivision 
22.2 	4, and Minnesota Rules, part 9505.0390; respiratory therapy services under section 
22.3 	256D.03, subdivision 4, and Minnesota Rules, part 9505.0295; physician services under 
22.4 	section 256B.0625, subdivision 3; dental services under sections 256B.0625, subdivision 
22.5 	9, and 256D.03, subdivision 4; alternative care services under section 256B.0913; adult 
22.6 	residential program grants under Minnesota Rules, parts 9535.2000 to 9535.3000; 
22.7 	adult and family community support grants under Minnesota Rules, parts 9535.1700 to 
22.8 	9535.1760; and semi-independent living services under section 252.275, including SILS 
22.9 	funding under county social services grants formerly funded under chapter 256I; adult 
22.10 	rehabilitative mental health services under section 256B.0623; and children's therapeutic 
22.11 	services and support services under section 256B.0943. 
22.12 	(c) The commissioner shall increase prepaid medical assistance program capitation 
22.13 	rates as appropriate to reflect the rate increases in this section.
22.14 	(d) In implementing this section, the commissioner shall consider proposing a 
22.15 	schedule to equalize rates paid by different programs for the same service.

22.16 	Sec. 2. Minnesota Statutes 2006, section 256B.0623, subdivision 8, is amended to read:
22.17 		Subd. 8.Diagnostic assessment. Providers of adult rehabilitative mental 
22.18 	health services must complete a diagnostic assessment as defined in section 245.462, 
22.19 	subdivision 9, within five days after the recipient's second visit or within 30 days after 
22.20 	intake, whichever occurs first. A diagnostic assessment must be reimbursed at the 
22.21 	same rate as an assessment under section 256B.0655, subdivision 8. In cases where a 
22.22 	diagnostic assessment is available that reflects the recipient's current status, and has been 
22.23 	completed within 180 days preceding admission, an update must be completed. An 
22.24 	update shall include a written summary by a mental health professional of the recipient's 
22.25 	current mental health status and service needs. If the recipient's mental health status 
22.26 	has changed significantly since the adult's most recent diagnostic assessment, a new 
22.27 	diagnostic assessment is required. For initial implementation of adult rehabilitative mental 
22.28 	health services, until June 30, 2005, a diagnostic assessment that reflects the recipient's 
22.29 	current status and has been completed within the past three years preceding admission 
22.30 	is acceptable. 

22.31 	Sec. 3. Minnesota Statutes 2006, section 256B.0625, subdivision 38, is amended to 
22.32 	read:
22.33 		Subd. 38.Payments for mental health services. (a) Payments for mental 
22.34 	health services covered under the medical assistance program that are provided by 
23.1 	masters-prepared mental health professionals shall be 80 percent of the rate paid to 
23.2 	doctoral-prepared professionals. Payments for mental health services covered under 
23.3 	the medical assistance program that are provided by masters-prepared mental health 
23.4 	professionals employed by community mental health centers shall be 100 percent of the 
23.5 	rate paid to doctoral-prepared professionals. For purposes of reimbursement of mental 
23.6 	health professionals under the medical assistance program, all
23.7 	(b) Payments for mental health services covered under the medical assistance 
23.8 	program that are provided by social workers who:
23.9 	(1) have received a master's degree in social work from a program accredited by the 
23.10 	Council on Social Work Education;
23.11 	(2) are licensed at the level of graduate social worker or independent social worker; 
23.12 	and
23.13 	(3) are practicing clinical social work under appropriate supervision, as defined by 
23.14 	chapter 148D; and
23.15 	(4) meet all requirements under Minnesota Rules, part 9505.0323, subpart 24, and. 
23.16 	Payments under this paragraph  shall be paid accordingly according to Minnesota Rules, 
23.17 	part 9505.0323, subpart 24, unless paragraph (c) is applicable.
23.18 	(c) Payments for mental health services covered under the medical assistance 
23.19 	program that are provided by an individual who is employed by a community mental 
23.20 	health center and: 
23.21 	(1) who is a licensed graduate social worker under section 148D.055, subdivision 3, 
23.22 	or a licensed independent social worker under section 148D.055, subdivision 4;
23.23 	(2) who has completed all requirements for licensure or board certification as a 
23.24 	mental health professional except for the requirements for supervised experience in the 
23.25 	delivery of mental health services; or 
23.26 	(3) who is a student in a bona fide field placement or internship under a program 
23.27 	leading to completion of the requirements for licensure as a mental health professional
23.28 	shall be reimbursed at 100 percent of the rate paid to the supervising professional. 
23.29 	The individual providing the service under this paragraph must be under the clinical 
23.30 	supervision of a fully qualified mental health professional.
23.31 	(d) Subject to federal approval, medical assistance covers clinical supervision of 
23.32 	mental health practitioners by a mental health professional when clinical supervision is 
23.33 	required as part of other medical assistance services.

23.34 	Sec. 4. Minnesota Statutes 2006, section 256B.0625, subdivision 43, is amended to 
23.35 	read:
24.1 		Subd. 43.Mental health provider travel time. Medical assistance covers provider 
24.2 	travel time if a recipient's individual treatment plan requires the provision of mental health 
24.3 	services outside of the provider's normal place of business. This The per minute rate 
24.4 	for travel time is to be calculated at two times the IRS mileage rate. Reimbursement 
24.5 	under this subdivision does not include any travel time which is included in other billable 
24.6 	services, and is only covered when the mental health service being provided to a recipient 
24.7 	is covered under medical assistance.

24.8 	Sec. 5. Minnesota Statutes 2006, section 256B.0625, subdivision 46, is amended to 
24.9 	read:
24.10 		Subd. 46.Mental health telemedicine. Effective January 1, 2006, and subject to 
24.11 	federal approval, mental health services that are otherwise covered by medical assistance 
24.12 	as direct face-to-face services may be provided via two-way interactive video. Use of 
24.13 	two-way interactive video must be medically appropriate to the condition and needs 
24.14 	of the person being served. Reimbursement is at the same rates and under the same 
24.15 	conditions that would otherwise apply to the service and shall include payment for the 
24.16 	originating facility fee and the cost of broadband connections. The interactive video 
24.17 	equipment and connection must comply with Medicare standards in effect at the time 
24.18 	the service is provided.

24.19 	Sec. 6. Minnesota Statutes 2006, section 256B.0943, is amended by adding a 
24.20 	subdivision to read:
24.21 		Subd. 11a.Reimbursement of diagnostic assessments. A diagnostic assessment 
24.22 	under this section must be reimbursed at the same rate as a diagnostic assessment under 
24.23 	section 256B.0655, subdivision 8.

24.24 	Sec. 7. Minnesota Statutes 2006, section 256B.69, subdivision 5g, is amended to read:
24.25 		Subd. 5g.Payment for covered services. For services rendered on or after January 
24.26 	1, 2003, the total payment made to managed care plans for providing covered services 
24.27 	under the medical assistance and general assistance medical care programs is reduced by 
24.28 	.5 percent from their current statutory rates. This provision excludes payments for nursing 
24.29 	home services, home and community-based waivers, and payments to demonstration 
24.30 	projects for persons with disabilities, and mental health services added as covered benefits 
24.31 	after December 31, 2007.

24.32 	Sec. 8. Minnesota Statutes 2006, section 256B.69, subdivision 5h, is amended to read:
25.1 		Subd. 5h.Payment reduction. In addition to the reduction in subdivision 5g, 
25.2 	the total payment made to managed care plans under the medical assistance program is 
25.3 	reduced 1.0 percent for services provided on or after October 1, 2003, and an additional 
25.4 	1.0 percent for services provided on or after January 1, 2004. This provision excludes 
25.5 	payments for nursing home services, home and community-based waivers, and payments 
25.6 	to demonstration projects for persons with disabilities, and mental health services added as 
25.7 	covered benefits after December 1, 2007.

25.8 	Sec. 9. Minnesota Statutes 2006, section 256B.763, is amended to read:
25.9 	256B.763 CRITICAL ACCESS MENTAL HEALTH RATE INCREASE.
25.10 	(a) For services defined in paragraph (b) and rendered on or after July 1, 2007, 
25.11 	payment rates shall be increased by 23.7 percent over the rates in effect on January 1, 
25.12 	2006, for:
25.13 	(1) psychiatrists and advanced practice registered nurses with a psychiatric specialty;
25.14 	(2) community mental health centers under section 256B.0625, subdivision 5; and
25.15 	(3) mental health clinics and centers certified under Minnesota Rules, parts 
25.16 	9520.0750 to 9520.0870, or hospital outpatient psychiatric departments that are designated 
25.17 	as essential community providers under section 62Q.19.
25.18 	(b) This increase applies to group skills training when provided as a component of 
25.19 	children's therapeutic services and support, psychotherapy, medication management, 
25.20 	evaluation and management, diagnostic assessment, explanation of findings, psychological 
25.21 	testing, neuropsychological services, direction of behavioral aides, and inpatient 
25.22 	consultation.
25.23 	(c) This increase does not apply to rates that are governed by section 256B.0625, 
25.24 	subdivision 30, or 256B.761, paragraph (b), other cost-based rates, rates that are 
25.25 	negotiated with the county, rates that are established by the federal government, or rates 
25.26 	that increased between January 1, 2004, and January 1, 2005.
25.27 	(d) The commissioner shall adjust rates paid to prepaid health plans under contract 
25.28 	with the commissioner to reflect the rate increases provided in paragraphparagraphs  (a)
25.29 	and (e). The prepaid health plan must pass this rate increase to the providers identified in 
25.30 	paragraphparagraphs  (a) and (e).
25.31 	(e) Effective January 1, 2008, payment rates for all services not included in 
25.32 	paragraph (b) shall increase 23.7 percent over rates in effect on January 1, 2006, for all 
25.33 	services by community mental health centers under section 256B.0625, subdivision 5.

25.34 	Sec. 10. Minnesota Statutes 2006, section 256D.03, subdivision 4, is amended to read:
26.1 		Subd. 4.General assistance medical care; services. (a)(i) For a person who is 
26.2 	eligible under subdivision 3, paragraph (a), clause (2), item (i), general assistance medical 
26.3 	care covers, except as provided in paragraph (c):
26.4 	(1) inpatient hospital services;
26.5 	(2) outpatient hospital services;
26.6 	(3) services provided by Medicare certified rehabilitation agencies;
26.7 	(4) prescription drugs and other products recommended through the process 
26.8 	established in section 256B.0625, subdivision 13;
26.9 	(5) equipment necessary to administer insulin and diagnostic supplies and equipment 
26.10 	for diabetics to monitor blood sugar level;
26.11 	(6) eyeglasses and eye examinations provided by a physician or optometrist;
26.12 	(7) hearing aids;
26.13 	(8) prosthetic devices;
26.14 	(9) laboratory and X-ray services;
26.15 	(10) physician's services;
26.16 	(11) medical transportation except special transportation;
26.17 	(12) chiropractic services as covered under the medical assistance program;
26.18 	(13) podiatric services;
26.19 	(14) dental services as covered under the medical assistance program;
26.20 	(15) outpatient services provided by a mental health center or clinic that is under 
26.21 	contract with the county board and is established under section 245.62 mental health 
26.22 	services covered under chapter 256B;
26.23 	(16) day treatment services for mental illness provided under contract with the 
26.24 	county board;
26.25 	(17) prescribed medications for persons who have been diagnosed as mentally ill as 
26.26 	necessary to prevent more restrictive institutionalization;
26.27 	(18) psychological services, (17) medical supplies and equipment, and Medicare 
26.28 	premiums, coinsurance and deductible payments;
26.29 	(19) (18) medical equipment not specifically listed in this paragraph when the use 
26.30 	of the equipment will prevent the need for costlier services that are reimbursable under 
26.31 	this subdivision;
26.32 	(20) (19) services performed by a certified pediatric nurse practitioner, a 
26.33 	certified family nurse practitioner, a certified adult nurse practitioner, a certified 
26.34 	obstetric/gynecological nurse practitioner, a certified neonatal nurse practitioner, or a 
26.35 	certified geriatric nurse practitioner in independent practice, if (1) the service is otherwise 
26.36 	covered under this chapter as a physician service, (2) the service provided on an inpatient 
27.1 	basis is not included as part of the cost for inpatient services included in the operating 
27.2 	payment rate, and (3) the service is within the scope of practice of the nurse practitioner's 
27.3 	license as a registered nurse, as defined in section 148.171;
27.4 	(21) (20) services of a certified public health nurse or a registered nurse practicing 
27.5 	in a public health nursing clinic that is a department of, or that operates under the direct 
27.6 	authority of, a unit of government, if the service is within the scope of practice of the 
27.7 	public health nurse's license as a registered nurse, as defined in section 148.171;
27.8 	(22) (21) telemedicine consultations, to the extent they are covered under section 
27.9 	256B.0625, subdivision 3b; and
27.10 	(23) mental health telemedicine and psychiatric consultation as covered under 
27.11 	section 256B.0625, subdivisions 46 and 48
27.12 	(22) up to six hours of service per client per year, without authorization, of 
27.13 	consultation and care coordination as directed by an individual treatment plan, and as a 
27.14 	component of children's therapeutic services and support, adult rehabilitative mental 
27.15 	health services, or community mental health services; and
27.16 	(23) up to six hours of service per client per year for collateral contacts as a 
27.17 	component of children's therapeutic services and support, adult rehabilitative mental 
27.18 	health services, or community mental health services. These services must be directed 
27.19 	by an individual treatment plan and are solely for the purpose of assisting parents and 
27.20 	others toward understanding, accommodating, and better caregiving of the person with 
27.21 	mental illness or emotional disturbance.
27.22 	(ii) Effective October 1, 2003, for a person who is eligible under subdivision 3, 
27.23 	paragraph (a), clause (2), item (ii), general assistance medical care coverage is limited 
27.24 	to inpatient hospital services, including physician services provided during the inpatient 
27.25 	hospital stay. A $1,000 deductible is required for each inpatient hospitalization.
27.26 	(b) Effective August 1, 2005, sex reassignment surgery is not covered under this 
27.27 	subdivision.
27.28 	(c) In order to contain costs, the commissioner of human services shall select 
27.29 	vendors of medical care who can provide the most economical care consistent with high 
27.30 	medical standards and shall where possible contract with organizations on a prepaid 
27.31 	capitation basis to provide these services. The commissioner shall consider proposals by 
27.32 	counties and vendors for prepaid health plans, competitive bidding programs, block grants, 
27.33 	or other vendor payment mechanisms designed to provide services in an economical 
27.34 	manner or to control utilization, with safeguards to ensure that necessary services are 
27.35 	provided. Before implementing prepaid programs in counties with a county operated or 
27.36 	affiliated public teaching hospital or a hospital or clinic operated by the University of 
28.1 	Minnesota, the commissioner shall consider the risks the prepaid program creates for the 
28.2 	hospital and allow the county or hospital the opportunity to participate in the program in a 
28.3 	manner that reflects the risk of adverse selection and the nature of the patients served by 
28.4 	the hospital, provided the terms of participation in the program are competitive with the 
28.5 	terms of other participants considering the nature of the population served. Payment for 
28.6 	services provided pursuant to this subdivision shall be as provided to medical assistance 
28.7 	vendors of these services under sections 256B.02, subdivision 8, and 256B.0625. For 
28.8 	payments made during fiscal year 1990 and later years, the commissioner shall consult 
28.9 	with an independent actuary in establishing prepayment rates, but shall retain final control 
28.10 	over the rate methodology.
28.11 	(d) Recipients eligible under subdivision 3, paragraph (a), shall pay the following 
28.12 	co-payments for services provided on or after October 1, 2003:
28.13 	(1) $25 for eyeglasses;
28.14 	(2) $25 for nonemergency visits to a hospital-based emergency room;
28.15 	(3) $3 per brand-name drug prescription and $1 per generic drug prescription, 
28.16 	subject to a $12 per month maximum for prescription drug co-payments. No co-payments 
28.17 	shall apply to antipsychotic drugs when used for the treatment of mental illness; and
28.18 	(4) 50 percent coinsurance on restorative dental services.
28.19 	(e) Co-payments shall be limited to one per day per provider for nonpreventive visits, 
28.20 	eyeglasses, and nonemergency visits to a hospital-based emergency room. Recipients of 
28.21 	general assistance medical care are responsible for all co-payments in this subdivision. 
28.22 	The general assistance medical care reimbursement to the provider shall be reduced by 
28.23 	the amount of the co-payment, except that reimbursement for prescription drugs shall not 
28.24 	be reduced once a recipient has reached the $12 per month maximum for prescription 
28.25 	drug co-payments. The provider collects the co-payment from the recipient. Providers 
28.26 	may not deny services to recipients who are unable to pay the co-payment, except as 
28.27 	provided in paragraph (f).
28.28 	(f) If it is the routine business practice of a provider to refuse service to an individual 
28.29 	with uncollected debt, the provider may include uncollected co-payments under this 
28.30 	section. A provider must give advance notice to a recipient with uncollected debt before 
28.31 	services can be denied.
28.32 	(g) Any county may, from its own resources, provide medical payments for which 
28.33 	state payments are not made.
28.34 	(h) Chemical dependency services that are reimbursed under chapter 254B must not 
28.35 	be reimbursed under general assistance medical care.
29.1 	(i) The maximum payment for new vendors enrolled in the general assistance 
29.2 	medical care program after the base year shall be determined from the average usual and 
29.3 	customary charge of the same vendor type enrolled in the base year.
29.4 	(j) The conditions of payment for services under this subdivision are the same as the 
29.5 	conditions specified in rules adopted under chapter 256B governing the medical assistance 
29.6 	program, unless otherwise provided by statute or rule.
29.7 	(k) Inpatient and outpatient payments shall be reduced by five percent, effective July 
29.8 	1, 2003. This reduction is in addition to the five percent reduction effective July 1, 2003, 
29.9 	and incorporated by reference in paragraph (i).
29.10 	(l) Payments for all other health services except inpatient, outpatient, and pharmacy 
29.11 	services shall be reduced by five percent, effective July 1, 2003.
29.12 	(m) Payments to managed care plans shall be reduced by five percent for services 
29.13 	provided on or after October 1, 2003.
29.14 	(n) A hospital receiving a reduced payment as a result of this section may apply the 
29.15 	unpaid balance toward satisfaction of the hospital's bad debts.
29.16 	(o) Fee-for-service payments for nonpreventive visits shall be reduced by $3 
29.17 	for services provided on or after January 1, 2006. For purposes of this subdivision, a 
29.18 	visit means an episode of service which is required because of a recipient's symptoms, 
29.19 	diagnosis, or established illness, and which is delivered in an ambulatory setting by 
29.20 	a physician or physician ancillary, chiropractor, podiatrist, advance practice nurse, 
29.21 	audiologist, optician, or optometrist.
29.22 	(p) Payments to managed care plans shall not be increased as a result of the removal 
29.23 	of the $3 nonpreventive visit co-payment effective January 1, 2006.
29.24 	(q) Payments for mental health services added as covered benefits after December 1, 
29.25 	2007, are not subject to the reductions in paragraphs (i), (k), (l), and (m).

29.26 	Sec. 11. Minnesota Statutes 2006, section 256D.44, subdivision 5, is amended to read:
29.27 		Subd. 5.Special needs. In addition to the state standards of assistance established in 
29.28 	subdivisions 1 to 4, payments are allowed for the following special needs of recipients of 
29.29 	Minnesota supplemental aid who are not residents of a nursing home, a regional treatment 
29.30 	center, or a group residential housing facility.
29.31 	(a) The county agency shall pay a monthly allowance for medically prescribed 
29.32 	diets if the cost of those additional dietary needs cannot be met through some other 
29.33 	maintenance benefit. The need for special diets or dietary items must be prescribed by 
29.34 	a licensed physician. Costs for special diets shall be determined as percentages of the 
29.35 	allotment for a one-person household under the thrifty food plan as defined by the United 
30.1 	States Department of Agriculture. The types of diets and the percentages of the thrifty 
30.2 	food plan that are covered are as follows:
30.3 	(1) high protein diet, at least 80 grams daily, 25 percent of thrifty food plan;
30.4 	(2) controlled protein diet, 40 to 60 grams and requires special products, 100 percent 
30.5 	of thrifty food plan;
30.6 	(3) controlled protein diet, less than 40 grams and requires special products, 125 
30.7 	percent of thrifty food plan;
30.8 	(4) low cholesterol diet, 25 percent of thrifty food plan;
30.9 	(5) high residue diet, 20 percent of thrifty food plan;
30.10 	(6) pregnancy and lactation diet, 35 percent of thrifty food plan;
30.11 	(7) gluten-free diet, 25 percent of thrifty food plan;
30.12 	(8) lactose-free diet, 25 percent of thrifty food plan;
30.13 	(9) antidumping diet, 15 percent of thrifty food plan;
30.14 	(10) hypoglycemic diet, 15 percent of thrifty food plan; or
30.15 	(11) ketogenic diet, 25 percent of thrifty food plan.
30.16 	(b) Payment for nonrecurring special needs must be allowed for necessary home 
30.17 	repairs or necessary repairs or replacement of household furniture and appliances using 
30.18 	the payment standard of the AFDC program in effect on July 16, 1996, for these expenses, 
30.19 	as long as other funding sources are not available.
30.20 	(c) A fee for guardian or conservator service is allowed at a reasonable rate 
30.21 	negotiated by the county or approved by the court. This rate shall not exceed five percent 
30.22 	of the assistance unit's gross monthly income up to a maximum of $100 per month. If the 
30.23 	guardian or conservator is a member of the county agency staff, no fee is allowed.
30.24 	(d) The county agency shall continue to pay a monthly allowance of $68 for 
30.25 	restaurant meals for a person who was receiving a restaurant meal allowance on June 1, 
30.26 	1990, and who eats two or more meals in a restaurant daily. The allowance must continue 
30.27 	until the person has not received Minnesota supplemental aid for one full calendar month 
30.28 	or until the person's living arrangement changes and the person no longer meets the criteria 
30.29 	for the restaurant meal allowance, whichever occurs first.
30.30 	(e) A fee of ten percent of the recipient's gross income or $25, whichever is less, 
30.31 	is allowed for representative payee services provided by an agency that meets the 
30.32 	requirements under SSI regulations to charge a fee for representative payee services. This 
30.33 	special need is available to all recipients of Minnesota supplemental aid regardless of 
30.34 	their living arrangement.
30.35 	(f) Notwithstanding the language in this subdivision, an amount equal to the 
30.36 	maximum allotment authorized by the federal Food Stamp Program for a single individual 
31.1 	which is in effect on the first day of January July of the previous current state fiscal
31.2 	year will be added to the standards of assistance established in subdivisions 1 to 4 for 
31.3 	individuals under the age of 65 who are relocating from an institution, or an adult mental 
31.4 	health residential treatment program under section 256B.0622, or an adult eligible for the 
31.5 	community alternatives for disabled individuals waiver, and who are shelter needy. An 
31.6 	eligible individual who receives this benefit prior to age 65 may continue to receive the 
31.7 	benefit after the age of 65.
31.8 	"Shelter needy" means that the assistance unit incurs monthly shelter costs that 
31.9 	exceed 40 percent of the assistance unit's gross income before the application of this 
31.10 	special needs standard. "Gross income" for the purposes of this section is the applicant's or 
31.11 	recipient's income as defined in section 256D.35, subdivision 10, or the standard specified 
31.12 	in subdivision 3, whichever is greater. A recipient of a federal or state housing subsidy, 
31.13 	that limits shelter costs to a percentage of gross income, shall not be considered shelter 
31.14 	needy for purposes of this paragraph.

31.15 	Sec. 12. Minnesota Statutes 2006, section 256L.03, subdivision 1, is amended to read:
31.16 		Subdivision 1.Covered health services. For individuals under section 256L.04, 
31.17 	subdivision 7, with income no greater than 75 percent of the federal poverty guidelines 
31.18 	or for families with children under section 256L.04, subdivision 1, all subdivisions of 
31.19 	this section apply. "Covered health services" means the health services reimbursed 
31.20 	under chapter 256B, with the exception of inpatient hospital services, special education 
31.21 	services, private duty nursing services, adult dental care services other than services 
31.22 	covered under section 256B.0625, subdivision 9, orthodontic services, nonemergency 
31.23 	medical transportation services, personal care assistant and case management services, 
31.24 	nursing home or intermediate care facilities services, inpatient mental health services, 
31.25 	and chemical dependency services. Outpatient mental health services covered under the 
31.26 	MinnesotaCare program are limited to diagnostic assessments, psychological testing, 
31.27 	explanation of findings, mental health telemedicine, psychiatric consultation, medication 
31.28 	management by a physician, day treatment, partial hospitalization, and individual, family, 
31.29 	and group psychotherapy.
31.30 	No public funds shall be used for coverage of abortion under MinnesotaCare 
31.31 	except where the life of the female would be endangered or substantial and irreversible 
31.32 	impairment of a major bodily function would result if the fetus were carried to term; or 
31.33 	where the pregnancy is the result of rape or incest.
31.34 	Covered health services shall be expanded as provided in this section.

32.1 	Sec. 13. Minnesota Statutes 2006, section 256L.03, subdivision 5, is amended to read:
32.2 		Subd. 5.Co-payments and coinsurance. (a) Except as provided in paragraphs (b) 
32.3 	and (c), the MinnesotaCare benefit plan shall include the following co-payments and 
32.4 	coinsurance requirements for all enrollees:
32.5 	(1) ten percent of the paid charges for inpatient hospital services for adult enrollees, 
32.6 	subject to an annual inpatient out-of-pocket maximum of $1,000 per individual and 
32.7 	$3,000 per family;
32.8 	(2) $3 per prescription for adult enrollees;
32.9 	(3) $25 for eyeglasses for adult enrollees;
32.10 	(4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an 
32.11 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
32.12 	established illness, and which is delivered in an ambulatory setting by a physician or 
32.13 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
32.14 	audiologist, optician, or optometrist; and
32.15 	(5) $6 for nonemergency visits to a hospital-based emergency room.
32.16 	(b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of 
32.17 	children under the age of 21 in households with family income equal to or less than 175 
32.18 	percent of the federal poverty guidelines. Paragraph (a), clause (1), does not apply to 
32.19 	parents and relative caretakers of children under the age of 21 in households with family 
32.20 	income greater than 175 percent of the federal poverty guidelines for inpatient hospital 
32.21 	admissions occurring on or after January 1, 2001.
32.22 	(c) Paragraph (a), clauses (1) to (4), do not apply to pregnant women and children 
32.23 	under the age of 21.
32.24 	(d) Paragraph (a), clause (4), does not apply to mental health services.
32.25 	(e) Adult enrollees with family gross income that exceeds 175 percent of the 
32.26 	federal poverty guidelines and who are not pregnant shall be financially responsible for 
32.27 	the coinsurance amount, if applicable, and amounts which exceed the $10,000 inpatient 
32.28 	hospital benefit limit.
32.29 	(e) (f) When a MinnesotaCare enrollee becomes a member of a prepaid health plan, 
32.30 	or changes from one prepaid health plan to another during a calendar year, any charges 
32.31 	submitted towards the $10,000 annual inpatient benefit limit, and any out-of-pocket 
32.32 	expenses incurred by the enrollee for inpatient services, that were submitted or incurred 
32.33 	prior to enrollment, or prior to the change in health plans, shall be disregarded.

33.1 	Sec. 14. Minnesota Statutes 2006, section 256L.035, is amended to read:
33.2 	256L.035 LIMITED BENEFITS COVERAGE FOR CERTAIN SINGLE 
33.3 	ADULTS AND HOUSEHOLDS WITHOUT CHILDREN.
33.4 	(a) "Covered health services" for individuals under section 256L.04, subdivision 
33.5 	7, with income above 75 percent, but not exceeding 175 percent, of the federal poverty 
33.6 	guideline means:
33.7 	(1) inpatient hospitalization benefits with a ten percent co-payment up to $1,000 and 
33.8 	subject to an annual limitation of $10,000;
33.9 	(2) physician services provided during an inpatient stay; and
33.10 	(3) physician services not provided during an inpatient stay; outpatient hospital 
33.11 	services; freestanding ambulatory surgical center services; chiropractic services; lab and 
33.12 	diagnostic services; diabetic supplies and equipment; mental health services as covered 
33.13 	under chapter 256B; and prescription drugs; subject to the following co-payments:
33.14 	(i) $50 co-pay per emergency room visit;
33.15 	(ii) $3 co-pay per prescription drug; and
33.16 	(iii) $5 co-pay per nonpreventive visit; except this co-pay does not apply to mental 
33.17 	health services or community mental health services.
33.18 	The services covered under this section may be provided by a physician, physician 
33.19 	ancillary, chiropractor, psychologist, or licensed independent clinical social worker, or 
33.20 	other mental health providers covered under chapter 256B if the services are within the 
33.21 	scope of practice of that health care professional.
33.22 	For purposes of this section, "a visit" means an episode of service which is required 
33.23 	because of a recipient's symptoms, diagnosis, or established illness, and which is delivered 
33.24 	in an ambulatory setting by any health care provider identified in this paragraph.
33.25 	Enrollees are responsible for all co-payments in this section.
33.26 	(b) Reimbursement to the providers shall be reduced by the amount of the 
33.27 	co-payment, except that reimbursement for prescription drugs shall not be reduced once a 
33.28 	recipient has reached the $20 per month maximum for prescription drug co-payments. 
33.29 	The provider collects the co-payment from the recipient. Providers may not deny services 
33.30 	to recipients who are unable to pay the co-payment, except as provided in paragraph (c).
33.31 	(c) If it is the routine business practice of a provider to refuse service to an individual 
33.32 	with uncollected debt, the provider may include uncollected co-payments under this 
33.33 	section. A provider must give advance notice to a recipient with uncollected debt before 
33.34 	services can be denied.

33.35 	Sec. 15. Minnesota Statutes 2006, section 256L.07, subdivision 3, is amended to read:
34.1 		Subd. 3.Other health coverage. (a) Families and individuals enrolled in the 
34.2 	MinnesotaCare program must have no health coverage while enrolled or for at least four 
34.3 	months prior to application and renewal. Children enrolled in the original children's health 
34.4 	plan and children in families with income equal to or less than 150 percent of the federal 
34.5 	poverty guidelines, who have other health insurance, are eligible if the coverage:
34.6 	(1) lacks two or more of the following:
34.7 	(i) basic hospital insurance;
34.8 	(ii) medical-surgical insurance;
34.9 	(iii) prescription drug coverage;
34.10 	(iv) dental coverage; or
34.11 	(v) vision coverage; or
34.12 	(vi) mental health coverage;
34.13 	(2) requires a deductible of $100 or more per person per year; or
34.14 	(3) lacks coverage because the child has exceeded the maximum coverage for a 
34.15 	particular diagnosis or the policy excludes a particular diagnosis.
34.16 	The commissioner may change this eligibility criterion for sliding scale premiums 
34.17 	in order to remain within the limits of available appropriations. The requirement of no 
34.18 	health coverage does not apply to newborns.
34.19 	(b) Medical assistance, general assistance medical care, and the Civilian Health and 
34.20 	Medical Program of the Uniformed Service, CHAMPUS, or other coverage provided under 
34.21 	United States Code, title 10, subtitle A, part II, chapter 55, are not considered insurance or 
34.22 	health coverage for purposes of the four-month requirement described in this subdivision.
34.23 	(c) For purposes of this subdivision, an applicant or enrollee who is entitled to 
34.24 	Medicare Part A or enrolled in Medicare Part B coverage under title XVIII of the Social 
34.25 	Security Act, United States Code, title 42, sections 1395c to 1395w-152, is considered to 
34.26 	have health coverage. An applicant or enrollee who is entitled to premium-free Medicare 
34.27 	Part A may not refuse to apply for or enroll in Medicare coverage to establish eligibility 
34.28 	for MinnesotaCare.
34.29 	(d) Applicants who were recipients of medical assistance or general assistance 
34.30 	medical care within one month of application must meet the provisions of this subdivision 
34.31 	and subdivision 2.
34.32 	(e) Cost-effective health insurance that was paid for by medical assistance is not 
34.33 	considered health coverage for purposes of the four-month requirement under this 
34.34 	section, except if the insurance continued after medical assistance no longer considered it 
34.35 	cost-effective or after medical assistance closed.

35.1 	Sec. 16. Minnesota Statutes 2006, section 256L.12, subdivision 9a, is amended to read:
35.2 		Subd. 9a.Rate setting; ratable reduction. For services rendered on or after 
35.3 	October 1, 2003, the total payment made to managed care plans under the MinnesotaCare 
35.4 	program is reduced 1.0 percent. This provision excludes payments for mental health 
35.5 	services added as covered benefits after December 31, 2007.

35.6 	Sec. 17. MENTAL HEALTH SERVICES PROVIDER RATE INCREASES.
 35.7 	(a) The commissioner of human services shall increase reimbursement rates or rate 
35.8 	limits, as applicable, by ..... percent for the rate period beginning October 1, 2007, and 
35.9 	the rate period beginning October 1, 2008, effective for services  rendered on or after 
35.10 	those dates.
35.11 	(b) The ..... percent annual rate increase described in this section must be provided to:
35.12 	(1) children's therapeutic services and support under section 256B.0943; and
35.13 	(2) adult rehabilitative mental health services under section 256B.0623.
35.14 	(c) Providers that receive a rate increase under this section shall use 75 percent of 
35.15 	the additional revenue to increase wages and benefits and pay associated costs for all 
35.16 	employees, except for management fees, the administrator, and central office staffs.
35.17 	(d) For public employees, the increase for wages and benefits for certain staff is 
35.18 	available and pay rates shall be increased only to the extent that they comply with laws 
35.19 	governing public employees' collective bargaining. Money received by a provider for pay 
35.20 	increases under this section may be used only for increases implemented on or after the 
35.21 	first day of the rate period in which the increase is available and must not be used for 
35.22 	increases implemented prior to that date.
35.23 	(e) A copy of the provider's plan for complying with paragraph (c) must be made 
35.24 	available to all employees by giving each employee a copy or by posting a copy in an area 
35.25 	of the provider's operation to which all employees have access. If an employee does not 
35.26 	receive the adjustment, if any, described in the plan and is unable to resolve the problem 
35.27 	with the provider, the employee may contact the employee's union representative. If the 
35.28 	employee is not covered by a collective bargaining agreement, the employee may contact 
35.29 	the commissioner at a telephone number provided by the commissioner and included in 
35.30 	the provider's plan.

35.31 	Sec. 18. REQUIREMENT FOR THE COMMISSIONER OF HUMAN 
35.32 	SERVICES TO SEEK FEDERAL APPROVAL TO EXPAND MEDICAL 
35.33 	ASSISTANCE TO INCLUDE CERTAIN MENTAL HEALTH SERVICES.
 36.1 	(a) The commissioner of human services shall seek federal approval to expand 
36.2 	medical assistance covered services to include:
36.3 	(1) family psychoeducation, which is a multimodal outpatient therapy and 
36.4 	rehabilitative service that involves parents, families, and others as resources in the 
36.5 	treatment, recovery, and improved functioning of a person with mental illness or 
36.6 	emotional disturbance, in which families learn about the illness, family reactions, and 
36.7 	types of treatment and support. Families learn to develop skills to handle problems 
36.8 	posed by mental illness including coping, managing stress, ensuring safety, creating 
36.9 	social support, identifying resources, and supporting treatment and recovery goals. 
36.10 	Services include family counseling, family treatment planning, and family support using 
36.11 	cognitive, behavioral, problem-solving, and communication strategies, and may involve 
36.12 	individual, family, and group intervention activities for consumers and families together, 
36.13 	families only, or brief intermittent consultations at critical times in an episode of care. 
36.14 	Eligible providers must be certified to provide both outpatient mental health services and 
36.15 	rehabilitative services under this section;
36.16 	(2) intensive mental health outpatient treatment, which is a multimodal, therapeutic, 
36.17 	and rehabilitative service that is provided for at least two hours per day and at least nine 
36.18 	to 20 hours per week. The service provides an opportunity to combine existing covered 
36.19 	services to deliver the necessary intensity and frequency of services identified in the 
36.20 	individual treatment plan. Components of intensive mental health outpatient treatment 
36.21 	include, but are not limited to:
36.22 	(i) individual, family, or multifamily group psychotherapy or psychoeducational 
36.23 	services;
36.24 	(ii) adjunctive services such as medical monitoring, family psychoeducation, 
36.25 	behavioral parent training, rehabilitative services, medication education, relapse 
36.26 	prevention, illness management and recovery services, and care coordination; and
36.27 	(iii) service coordination and referral for medical care or social services. 
36.28 	During transition into or from services, intensive outpatient treatment under 
36.29 	paragraph (a) may include time-limited services in multiple settings as clinically 
36.30 	necessary. The service must be paid as a per diem based on 90 percent of the rate paid 
36.31 	for partial hospitalization. Eligible providers must be licensed or certified to provide 
36.32 	all aspects of the service;
36.33 	(3) coordination and care management, which is for the purpose of improving 
36.34 	continuity and access to appropriate and necessary services; and
36.35 	(4) collateral contracts as a component of children's therapeutic services and support, 
36.36 	adult rehabilitative mental health services, and community mental health services. These 
37.1 	services must be directed by an individual treatment plan, and are solely for the purpose of 
37.2 	assisting parents and others toward understanding, accommodating, and better caregiving 
37.3 	of the person with mental illness or emotional disturbance.
37.4 	(b) The commissioner shall also seek federal approval in order to authorize medical 
37.5 	assistance payments for community mental health and psychiatry services provided to 
37.6 	dual-eligible clients to be paid at the Medicare reimbursement rate or at the medical 
37.7 	assistance payment rate in effect at a certain point in time, whichever is greater.
37.8 	(c) The commissioner shall seek federal approval as soon as possible, but no later 
37.9 	than September 1, 2007. The commissioner shall report to the legislative committees 
37.10 	having jurisdiction over mental health issues the result of each request in paragraphs 
37.11 	(a) and (b) in the legislative session following the federal government's determinations, 
37.12 	unless the commissioner receives the determination during a legislative session. If the 
37.13 	determination is favorable and is received by the commissioner during the legislative 
37.14 	session, the commissioner shall report the information to the legislature within one week.
37.15 	(d) If the federal government approves any of the requests in paragraphs (a) and (b), 
37.16 	the commissioner shall consult with mental health advocates for input when drafting 
37.17 	legislation incorporating the new services into the statutes. The draft legislation is due to 
37.18 	the legislature at the same time as the report in paragraph (c).

37.19 	Sec. 19. APPROPRIATIONS.
 37.20 		Subdivision 1.Mobile mental health crisis services. (a) $5,000,000 in fiscal year 
37.21 	2008 and $7,250,000 in fiscal year 2009 are appropriated from the general fund to the 
37.22 	commissioner of human services for statewide funding of mobile mental health crisis 
37.23 	services under Minnesota Statutes, sections 256B.0624 and 256B.0944.
37.24 	(b) Providers must utilize all available funding streams.
37.25 		Subd. 2.Mental health tracking system. $448,000 in fiscal year 2008 and 
37.26 	$324,000 in fiscal year 2009 are appropriated from the general fund to the commissioner 
37.27 	of human services to fund implementation and continuation of the mental health services 
37.28 	outcomes and tracking system.
37.29 		Subd. 3.Suicide prevention program. $1,100,000 in fiscal year 2008 and 
37.30 	$1,100,000 in fiscal year 2009 are appropriated from the general fund to the commissioner 
37.31 	of health to fund the suicide prevention program.