1.1 	A bill for an act
1.2 	relating to state government; making changes to health and human services 
1.3 	programs; modifying health policy; changing licensing provisions; altering 
1.4 	provisions for mental and chemical health; modifying child care provisions; 
1.5 	amending children and family services provisions; changing continuing 
1.6 	care provisions; amending MinnesotaCare; adjusting child care assistance 
1.7 	eligibility; establishing family stabilization services; enacting federal compliance 
1.8 	requirements; expanding medical assistance coverage; providing rate increases 
1.9 	for certain providers; modifying fees; appropriating money for human services, 
1.10 	health, veterans nursing homes boards, the Emergency Medical Services 
1.11 	Regulatory Board; health care boards, the Council on Disability, the ombudsman 
1.12 	for mental health and developmental disabilities, and the ombudsman for 
1.13 	families; requiring reports;amending Minnesota Statutes 2006, sections 
1.14 	16A.724, subdivision 2, by adding subdivisions; 47.58, subdivision 8; 62E.02, 
1.15 	subdivision 7; 62J.07, subdivisions 1, 3; 62J.495; 62J.692, subdivisions 1, 4, 
1.16 	5, 8; 62J.82; 62L.02, subdivision 11; 62Q.165, subdivisions 1, 2; 62Q.80, 
1.17 	subdivisions 3, 4, 13, 14, by adding a subdivision; 69.021, subdivision 11; 
1.18 	103I.101, subdivision 6; 103I.208, subdivisions 1, 2; 103I.235, subdivision 
1.19 	1; 119B.011, by adding a subdivision; 119B.035, subdivision 1; 119B.05, 
1.20 	subdivision 1; 119B.09, subdivision 1; 119B.12, by adding a subdivision; 
1.21 	119B.13, subdivisions 1, 7; 144.123; 144.125, subdivisions 1, 2; 144.3345; 
1.22 	144D.03, subdivision 1; 148.5194, by adding a subdivision; 148.6445, 
1.23 	subdivisions 1, 2; 148C.11, subdivision 1; 149A.52, subdivision 3; 149A.97, 
1.24 	subdivision 7; 153A.14, subdivision 4a; 153A.17; 169A.70, subdivision 4; 
1.25 	245.465, by adding a subdivision; 245.4874; 245.771, by adding a subdivision; 
1.26 	245.98, subdivision 2; 245A.035; 245A.10, subdivision 2; 245A.16, subdivisions 
1.27 	1, 3; 245C.02, by adding a subdivision; 245C.04, subdivision 1; 245C.05, 
1.28 	subdivisions 1, 4, 5, 7, by adding a subdivision; 245C.08, subdivisions 1, 
1.29 	2; 245C.10, by adding a subdivision; 245C.11, subdivisions 1, 2; 245C.12; 
1.30 	245C.16, subdivision 1; 245C.17, by adding a subdivision; 245C.21, by adding 
1.31 	a subdivision; 245C.23, subdivision 2; 246.54, subdivisions 1, 2; 252.27, 
1.32 	subdivision 2a; 252.32, subdivision 3; 253B.185, by adding a subdivision; 
1.33 	254B.02, subdivision 3; 256.01, subdivision 2b, by adding subdivisions; 256.482, 
1.34 	subdivisions 1, 8; 256.969, subdivisions 3a, 9, 27, by adding a subdivision; 
1.35 	256.975, subdivision 7; 256B.04, subdivision 14, by adding a subdivision; 
1.36 	256B.056, subdivision 10; 256B.0621, subdivision 11; 256B.0622, subdivision 
1.37 	2; 256B.0623, subdivision 5; 256B.0625, subdivisions 17, 18a, 20, 30, by adding 
1.38 	subdivisions; 256B.0631, subdivisions 1, 3; 256B.0911, subdivisions 1a, 3a, 
1.39 	3b, by adding a subdivision; 256B.0913, by adding a subdivision; 256B.0915, 
2.1 	by adding a subdivision; 256B.0943, subdivision 8; 256B.0945, subdivision 
2.2 	4; 256B.095; 256B.0951, subdivision 1; 256B.15, by adding a subdivision; 
2.3 	256B.199; 256B.431, subdivisions 2e, 41; 256B.434, subdivision 4, by adding a 
2.4 	subdivision; 256B.437, by adding a subdivision; 256B.441, subdivisions 1, 2, 5, 
2.5 	6, 10, 11, 13, 14, 17, 20, 24, 30, 31, 34, 38, by adding subdivisions; 256B.49, 
2.6 	subdivisions 11, 16; 256B.5012, by adding a subdivision; 256B.69, subdivisions 
2.7 	2, 4, 5g, 5h; 256B.75; 256B.76; 256B.763; 256D.03, subdivisions 3, 4; 256I.04, 
2.8 	subdivision 3; 256I.05, by adding subdivisions; 256J.01, by adding a subdivision; 
2.9 	256J.02, by adding a subdivision; 256J.021; 256J.08, subdivision 65; 256J.20, 
2.10 	subdivision 3; 256J.32, subdivision 6; 256J.425, subdivisions 3, 4; 256J.49, 
2.11 	subdivision 13; 256J.521, subdivisions 1, 2; 256J.53, subdivision 2; 256J.55, 
2.12 	subdivision 1; 256J.626, subdivisions 1, 2, 3, 4, 5, 6; 256L.01, subdivisions 1, 
2.13 	4; 256L.03, subdivisions 1, 3, 5; 256L.035; 256L.04, subdivisions 1, 1a, 7, 10; 
2.14 	256L.05, subdivisions 1, 1b, 2, 3a; 256L.07, subdivisions 1, 2, 3, 6; 256L.09, 
2.15 	subdivision 4; 256L.11, subdivision 7; 256L.12, subdivision 9a; 256L.15, 
2.16 	subdivisions 1, 2, 4; 256L.17, subdivisions 2, 3, 7; 259.20, subdivision 2; 
2.17 	259.29, subdivision 1; 259.41; 259.53, subdivision 2; 259.57, subdivision 2; 
2.18 	259.67, subdivision 4; 260C.209; 260C.212, subdivision 2; 462A.05, by adding 
2.19 	a subdivision; 518A.56, by adding a subdivision; 609.115, subdivisions 8, 9; 
2.20 	Laws 2005, chapter 98, article 3, section 25; Laws 2005, First Special Session 
2.21 	chapter 4, article 9, section 3, subdivision 2; proposing coding for new law in 
2.22 	Minnesota Statutes, chapters 16C; 144; 145; 149A; 245; 245C; 252; 254A; 256; 
2.23 	256B; 256C; 256J; 256L; repealing Minnesota Statutes 2006, sections 62A.301; 
2.24 	62J.692, subdivision 10; 256B.0631, subdivision 4; 256B.441, subdivisions 12, 
2.25 	16, 21, 26, 28, 42, 45; 256J.24, subdivision 6; 256J.29; 256J.37, subdivisions 3a, 
2.26 	3b; 256J.626, subdivisions 7, 9; 256L.035; 256L.07, subdivision 2a; Laws 2004, 
2.27 	chapter 288, article 6, section 27; Minnesota Rules, parts 4610.2800; 9585.0030.
2.28 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.29 	ARTICLE 1
2.30 	CHILD CARE

2.31 	Section 1. Minnesota Statutes 2006, section 119B.035, subdivision 1, is amended to 
2.32 	read:
2.33 		Subdivision 1.Establishment. A family in which a parent provides care for the 
2.34 	family's infant child may receive a subsidy in lieu of assistance if the family is eligible for 
2.35 	or is receiving assistance under the basic sliding fee program. An eligible family must 
2.36 	meet the eligibility factors under section 119B.09, except as provided in subdivision 4, 
2.37 	and the requirements of this section. Subject to federal match and maintenance of effort 
2.38 	requirements for the child care and development fund, and up to available appropriations, 
2.39 	the commissioner shall establish a pool of up to three percent of the annual state 
2.40 	appropriation for the basic sliding fee program to provide assistance under the at-home 
2.41 	infant child care program and for administrative costs associated with the program. At 
2.42 	the end of a fiscal year, the commissioner may carry forward any unspent funds under 
2.43 	this section to the next fiscal year within the same biennium for assistance under the 
2.44 	basic sliding fee program.

3.1 	Sec. 2. Minnesota Statutes 2006, section 119B.09, subdivision 1, is amended to read:
3.2 		Subdivision 1.General Eligibility requirements for all applicants for child 
3.3 	care assistance. (a) Child care services must be available to families who need child 
3.4 	care to find or keep employment or to obtain the training or education necessary to find 
3.5 	employment and who:
3.6 	(1) have household income less than or equal to 250 percent of the federal poverty 
3.7 	guidelines, adjusted for family size, and meet the requirements of section 119B.05; 
3.8 	receive MFIP assistance; and are participating in employment and training services under 
3.9 	chapter 256J or 256K; or
3.10 	(2) have household income less than or equal to 175 percent of the federal poverty 
3.11 	guidelines, adjusted for family size, at program entry and less than 250 percent of the 
3.12 	federal poverty guidelines, adjusted for family size, at program exit.; or
3.13 	(3) have household income less than or equal to 250 percent of the federal poverty 
3.14 	guidelines, adjusted for family size, and were a family whose child care assistance was 
3.15 	terminated due to insufficient funds under Minnesota Rules, part 3400.0183.
3.16 	(b) Child care services must be made available as in-kind services.
3.17 	(c) All applicants for child care assistance and families currently receiving child care 
3.18 	assistance must be assisted and required to cooperate in establishment of paternity and 
3.19 	enforcement of child support obligations for all children in the family as a condition 
3.20 	of program eligibility. For purposes of this section, a family is considered to meet the 
3.21 	requirement for cooperation when the family complies with the requirements of section 
3.22 	256.741.

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

3.24 	Sec. 3. Minnesota Statutes 2006, section 119B.12, is amended by adding a subdivision 
3.25 	to read:
3.26 		Subd. 3.Co-payment fee for families with annual incomes that exceed the 
3.27 	federal poverty level. The monthly family co-payment fee for families with annual 
3.28 	incomes greater than the federal poverty level, adjusted for family size, is determined 
3.29 	as follows.
3.30 	(a) The family's annual gross income is converted into a percentage of state median 
3.31 	income (SMI) for a family of four, adjusted for family size, by dividing the family's annual 
3.32 	gross income by 100 percent of the SMI for a family of four, adjusted for family size. The 
3.33 	percentage must be carried out to the nearest 100th of a percent. 
3.34 	(b) If the family's annual gross income is less than or equal to 75 percent of the 
3.35 	SMI for a family of four, adjusted for family size, the family's monthly co-payment fee 
4.1 	is the fixed percentage established for the family's income range in clauses (1) to (60), 
4.2 	multiplied by the highest possible income within that income range, divided by 12, and 
4.3 	rounded to the nearest whole dollar.
4.4 	(1) less than 35.01 percent of SMI is 2.20%;
4.5 	(2) 35.01 to 42.00 percent of SMI is 2.70%;
4.6 	(3) 42.01 to 43.00 percent of SMI is 3.75%;
4.7 	(4) 43.01 to 44.00 percent of SMI is 4.00%;
4.8 	(5) 44.01 to 45.00 percent of SMI is 4.25%;
4.9 	(6) 45.01 to 46.00 percent of SMI is 4.50%;
4.10 	(7) 46.01 to 47.00 percent of SMI is 4.75%;
4.11 	(8) 47.01 to 48.00 percent of SMI is 5.00%;
4.12 	(9) 48.01 to 49.00 percent of SMI is 5.25%;
4.13 	(10) 49.01 to 50.00 percent of SMI is 5.50%;
4.14 	(11) 50.01 to 50.50 percent of SMI is 5.75%;
4.15 	(12) 50.51 to 51.00 percent of SMI is 6.00%;
4.16 	(13) 51.01 to 51.50 percent of SMI is 6.25%;
4.17 	(14) 51.51 to 52.00 percent of SMI is 6.50%;
4.18 	(15) 52.01 to 52.50 percent of SMI is 6.75%;
4.19 	(16) 52.51 to 53.00 percent of SMI is 7.00%;
4.20 	(17) 53.01 to 53.50 percent of SMI is 7.25%;
4.21 	(18) 53.51 to 54.00 percent of SMI is 7.50%;
4.22 	(19) 54.01 to 54.50 percent of SMI is 7.75%;
4.23 	(20) 54.51 to 55.00 percent of SMI is 8.00%;
4.24 	(21) 55.01 to 55.50 percent of SMI is 8.30%;
4.25 	(22) 55.51 to 56.00 percent of SMI is 8.60%;
4.26 	(23) 56.01 to 56.50 percent of SMI is 8.90%;
4.27 	(24) 56.51 to 57.00 percent of SMI is 9.20%;
4.28 	(25) 57.01 to 57.50 percent of SMI is 9.50%;
4.29 	(26) 57.51 to 58.00 percent of SMI is 9.80%;
4.30 	(27) 58.01 to 58.50 percent of SMI is 10.10%;
4.31 	(28) 58.51 to 59.00 percent of SMI is 10.40%;
4.32 	(29) 59.01 to 59.50 percent of SMI is 10.70%;
4.33 	(30) 59.51 to 60.00 percent of SMI is 11.00%;
4.34 	(31) 60.01 to 60.50 percent of SMI is 11.30%;
4.35 	(32) 60.51 to 61.00 percent of SMI is 11.60%;
4.36 	(33) 61.01 to 61.50 percent of SMI is 11.90%;
5.1 	(34) 61.51 to 62.00 percent of SMI is 12.20%;
5.2 	(35) 62.01 to 62.50 percent of SMI is 12.50%;
5.3 	(36) 62.51 to 63.00 percent of SMI is 12.80%;
5.4 	(37) 63.01 to 63.50 percent of SMI is 13.10%;
5.5 	(38) 63.51 to 64.00 percent of SMI is 13.40%;
5.6 	(39) 64.01 to 64.50 percent of SMI is 13.70%;
5.7 	(40) 64.51 to 65.00 percent of SMI is 14.00%;
5.8 	(41) 65.01 to 65.50 percent of SMI is 14.30%;
5.9 	(42) 65.51 to 66.00 percent of SMI is 14.60%;
5.10 	(43) 66.01 to 66.50 percent of SMI is 14.90%;
5.11 	(44) 66.51 to 67.00 percent of SMI is 15.20%;
5.12 	(45) 67.01 to 67.50 percent of SMI is 15.50%;
5.13 	(46) 67.51 to 68.00 percent of SMI is 15.80%;
5.14 	(47) 68.01 to 68.50 percent of SMI is 16.10%;
5.15 	(48) 68.51 to 69.00 percent of SMI is 16.40%;
5.16 	(49) 69.01 to 69.50 percent of SMI is 16.70%;
5.17 	(50) 69.51 to 70.00 percent of SMI is 17.00%;
5.18 	(51) 70.01 to 70.50 percent of SMI is 17.30%;
5.19 	(52) 70.51 to 71.00 percent of SMI is 17.60%;
5.20 	(53) 71.01 to 71.50 percent of SMI is 17.90%;
5.21 	(54) 71.51 to 72.00 percent of SMI is 18.20%;
5.22 	(55) 72.01 to 72.50 percent of SMI is 18.50%;
5.23 	(56) 72.51 to 73.00 percent of SMI is 18.80%;
5.24 	(57) 73.01 to 73.50 percent of SMI is 19.10%;
5.25 	(58) 73.51 to 74.00 percent of SMI is 19.40%;
5.26 	(59) 74.01 to 74.50 percent of SMI is 19.70%; and
5.27 	(60) 74.51 to 75.00 percent of SMI is 20.00%.

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

5.29 	Sec. 4. Minnesota Statutes 2006, section 119B.13, subdivision 1, is amended to read:
5.30 		Subdivision 1.Subsidy restrictions. (a) Beginning July 1, 2006 2007, the 
5.31 	maximum rate paid for child care assistance in any county or multicounty region under the 
5.32 	child care fund shall be the  rate for like-care arrangements in the county effective January 
5.33 	1, 2006 2007, increased by sixthree percent.
6.1 	(b) Rate changes shall be implemented for services provided in September 2006
6.2 	2007 unless a participant eligibility redetermination or a new provider agreement is 
6.3 	completed between July 1, 2006 2007, and August 31, 2006 2007.
6.4 	As necessary, appropriate notice of adverse action must be made according to 
6.5 	Minnesota Rules, part 3400.0185, subparts 3 and 4.
6.6 	New cases approved on or after  July 1, 2006 2007, shall have the maximum rates 
6.7 	under paragraph (a), implemented immediately.
6.8 	(c) Not less than once every two yearsEvery year, the commissioner shall survey 
6.9 	rates charged by child care providers in Minnesota to determine the 75th percentile for 
6.10 	like-care arrangements in counties. When the commissioner determines that, using the 
6.11 	commissioner's established protocol, the number of providers responding to the survey is 
6.12 	too small to determine the 75th percentile rate for like-care arrangements in a county or 
6.13 	multicounty region, the commissioner may establish the 75th percentile maximum rate 
6.14 	based on like-care arrangements in a county, region, or category that the commissioner 
6.15 	deems to be similar.
6.16 	(d) A rate which includes a special needs rate paid under subdivision 3 may be in 
6.17 	excess of the maximum rate allowed under this subdivision.
6.18 	(e) The department shall monitor the effect of this paragraph on provider rates. The 
6.19 	county shall pay the provider's full charges for every child in care up to the maximum 
6.20 	established. The commissioner shall determine the maximum rate for each type of care on 
6.21 	an hourly, full-day, and weekly basis, including special needs and disability care.
6.22 	(f) When the provider charge is greater than the maximum provider rate allowed, 
6.23 	the parent is responsible for payment of the difference in the rates in addition to any 
6.24 	family co-payment fee.

6.25 	Sec. 5. Minnesota Statutes 2006, section 119B.13, subdivision 7, is amended to read:
6.26 		Subd. 7.Absent days. (a) Child care providers may not be reimbursed for more 
6.27 	than 25 full-day absent days per child, excluding holidays, in a fiscal year, or for more 
6.28 	than ten consecutive full-day absent days, unless the child has a documented medical 
6.29 	condition that causes more frequent absences. Absences due to a documented medical 
6.30 	condition of a parent or sibling who lives in the same residence as the child receiving 
6.31 	child care assistance do not count against the 25-day absent day limit in a fiscal year. 
6.32 	Documentation of medical conditions must be on the forms and submitted according to 
6.33 	the timelines established by the commissioner. A public health official or school nurse 
6.34 	may verify the illness in lieu of a medical practitioner. If a provider sends a child home 
6.35 	early due to a medical reason, including, but not limited to, fever or contagious illness, 
7.1 	the child care center director or lead teacher may verify the illness in lieu of a medical 
7.2 	practitioner. If a child attends for part of the time authorized to be in care in a day, but is 
7.3 	absent for part of the time authorized to be in care in that same day, the absent time will be 
7.4 	reimbursed but the time will not count toward the ten consecutive or 25 cumulative absent 
7.5 	day limits. Children in families where at least one parent is under the age of 21, does not 
7.6 	have a high school or general equivalency diploma, and is a student in a school district 
7.7 	or another similar program that provides or arranges for child care, as well as parenting, 
7.8 	social services, career and employment supports, and academic support to achieve high 
7.9 	school graduation, may be exempt from the absent day limits upon request of the program 
7.10 	and approval of the county. If a child attends part of an authorized day, payment to the 
7.11 	provider must be for the full amount of care authorized for that day. Child care providers 
7.12 	may only be reimbursed for absent days if the provider has a written policy for child 
7.13 	absences and charges all other families in care for similar absences. 
7.14 	(b) Child care providers must be reimbursed for up to ten federal or state holidays 
7.15 	or designated holidays per year when the provider charges all families for these days 
7.16 	and the holiday or designated holiday falls on a day when the child is authorized to be 
7.17 	in attendance. Parents may substitute other cultural or religious holidays for the ten 
7.18 	recognized state and federal holidays. Holidays do not count toward the ten consecutive or 
7.19 	25 cumulative absent day limits. 
7.20 	(c) A family or child care provider may not be assessed an overpayment for an 
7.21 	absent day payment unless (1) there was an error in the amount of care authorized for the 
7.22 	family, (2) all of the allowed full-day absent payments for the child have been paid, or (3) 
7.23 	the family or provider did not timely report a change as required under law.
7.24 	(d) The provider and family must receive notification of the number of absent days 
7.25 	used upon initial provider authorization for a family and when the family has used 15 
7.26 	cumulative absent days. Upon statewide implementation of the Minnesota Electronic 
7.27 	Child Care System, the provider and family authorization for a family and ongoing 
7.28 	notification of the number of absent days used as of the date of the notification.
7.29 	(e) A county may pay for more absent days than the statewide absent day policy 
7.30 	established under this subdivision if current market practice in the county justifies payment 
7.31 	for those additional days. County policies for payment of absent days in excess of the 
7.32 	statewide absent day policy and justification for these county policies must be included in 
7.33 	the county's child care fund plan under section 119B.08, subdivision 3.

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

7.35 	Sec. 6. Minnesota Statutes 2006, section 245A.10, subdivision 2, is amended to read:
8.1 		Subd. 2.County fees for background studies and licensing inspections. (a) For 
8.2 	purposes of family and group family child care licensing under this chapter, a county 
8.3 	agency may charge a fee to an applicant or license holder to recover the actual cost of 
8.4 	background studies, but in any case not to exceed $100 annually. A county agency may 
8.5 	also charge alicense fee to an applicant or license holder to recover the actual cost of 
8.6 	licensing inspections, but in any case not to exceed $150 annually$50 for a one-year 
8.7 	license or $100 for a two-year license.
8.8 	(b) A county agency may charge a fee to a legal nonlicensed child care provider or 
8.9 	applicant for authorization to recover the actual cost of background studies completed 
8.10 	under section  119B.125, but in any case not to exceed $100 annually. 
8.11 	(c) Counties may elect to reduce or waive the fees in paragraph (a) or (b):
8.12 	(1) in cases of financial hardship;
8.13 	(2)  if the county has a shortage of providers in the county's area;
8.14 	(3) for new providers; or
8.15 	(4) for providers who have attained at least 16 hours of training before seeking 
8.16 	initial licensure.
8.17 	(d) Counties may allow providers to pay the applicant fees in paragraph (a) or (b) on 
8.18 	an installment basis for up to one year. If the provider is receiving child care assistance 
8.19 	payments from the state, the provider may have the fees under paragraph (a) or (b) 
8.20 	deducted from the child care assistance payments for up to one year and the state shall 
8.21 	reimburse the county for the county fees collected in this manner.

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

8.23 	Sec. 7. TWO-HOUR EARLY CHILDHOOD TRAINING.
 8.24 	By January 15, 2008, the commissioner of human services, with input from the 
8.25 	Minnesota Licensed Family Child Care Association and the Minnesota Professional 
8.26 	Development Council, shall identify trainings that meets the two-hour early childhood 
8.27 	development training requirement for new child care practitioners under Minnesota 
8.28 	Statutes, section 245A.14, subdivision 9a. For licensed family child care, the commissioner 
8.29 	will also seek the input of labor unions that serve licensed family child care providers, if 
8.30 	the union has been recognized by a county to serve licensed family child care providers.

9.1 	ARTICLE 2
9.2 	CHILDREN AND FAMILY

9.3 	Section 1. Minnesota Statutes 2006, section 119B.011, is amended by adding a 
9.4 	subdivision to read:
9.5 		Subd. 13a.Family stabilization services. "Family stabilization services" means the 
9.6 	services under section 256J.575. 

9.7 	Sec. 2. Minnesota Statutes 2006, section 119B.05, subdivision 1, is amended to read:
9.8 		Subdivision 1.Eligible participants. Families eligible for child care assistance 
9.9 	under the MFIP child care program are:
9.10 	(1) MFIP participants who are employed or in job search and meet the requirements 
9.11 	of section 119B.10; 
9.12 	(2) persons who are members of transition year families under section 119B.011, 
9.13 	subdivision 20, and meet the requirements of section 119B.10; 
9.14 	(3) families who are participating in employment orientation or job search, or 
9.15 	other employment or training activities that are included in an approved employability 
9.16 	development plan under section 256J.95; 
9.17 	(4) MFIP families who are participating in work job search, job support, 
9.18 	employment, or training activities as required in their employment plan, or in appeals, 
9.19 	hearings, assessments, or orientations according to chapter 256J;
9.20 	(5) MFIP families who are participating in social services activities under chapter 
9.21 	256J as required in their employment plan approved according to chapter 256J;
9.22 	(6) families who are participating in services or activities that are included in an 
9.23 	approved family stabilization plan under section 256J.575;
9.24 	(7) families who are participating in programs as required in tribal contracts under 
9.25 	section 119B.02, subdivision 2, or 256.01, subdivision 2; and
9.26 	(7) (8)  families who are participating in the transition year extension under section 
9.27 	119B.011, subdivision 20a. 

9.28 	Sec. 3. Minnesota Statutes 2006, section 252.27, subdivision 2a, is amended to read:
9.29 		Subd. 2a.Contribution amount. (a) The natural or adoptive parents of a minor 
9.30 	child, including a child determined eligible for medical assistance without consideration of 
9.31 	parental income, must contribute to the cost of services used by making monthly payments 
9.32 	on a sliding scale based on income, unless the child is married or has been married, 
9.33 	parental rights have been terminated, or the child's adoption is subsidized according to 
10.1 	section 259.67 or through title IV-E of the Social Security Act. The parental contribution 
10.2 	is a partial or full payment for medical services provided for diagnostic, therapeutic, 
10.3 	curing, treating, mitigating, rehabilitation, maintenance, and personal care services as 
10.4 	defined in United States Code, title 26, section 213, needed by the child with a chronic 
10.5 	illness or disability.
10.6 	(b) For households with adjusted gross income equal to or greater than 100 percent 
10.7 	of federal poverty guidelines, the parental contribution shall be computed by applying the 
10.8 	following schedule of rates to the adjusted gross income of the natural or adoptive parents:
10.9 	(1) if the adjusted gross income is equal to or greater than 100 percent of federal 
10.10 	poverty guidelines and less than 175 percent of federal poverty guidelines, the parental 
10.11 	contribution is $4 per month;
10.12 	(2) if the adjusted gross income is equal to or greater than 175 percent of federal 
10.13 	poverty guidelines and less than or equal to 545 percent of federal poverty guidelines, 
10.14 	the parental contribution shall be determined using a sliding fee scale established by the 
10.15 	commissioner of human services which begins at one percent of adjusted gross income 
10.16 	at 175 percent of federal poverty guidelines and increases to 7.5 percent of adjusted 
10.17 	gross income for those with adjusted gross income up to 545 percent of federal poverty 
10.18 	guidelines;
10.19 	(3) if the adjusted gross income is greater than 545 percent of federal poverty 
10.20 	guidelines and less than 675 percent of federal poverty guidelines, the parental 
10.21 	contribution shall be 7.5 percent of adjusted gross income;
10.22 	(4) if the adjusted gross income is equal to or greater than 675 percent of federal 
10.23 	poverty guidelines and less than 975 percent of federal poverty guidelines, the parental 
10.24 	contribution shall be determined using a sliding fee scale established by the commissioner 
10.25 	of human services which begins at 7.5 percent of adjusted gross income at 675 percent of 
10.26 	federal poverty guidelines and increases to ten percent of adjusted gross income for those 
10.27 	with adjusted gross income up to 975 percent of federal poverty guidelines; and
10.28 	(5) if the adjusted gross income is equal to or greater than 975 percent of federal 
10.29 	poverty guidelines, the parental contribution shall be 12.5 percent of adjusted gross 
10.30 	income.
10.31 	If the child lives with the parent, the annual adjusted gross income is reduced by 
10.32 	$2,400 prior to calculating the parental contribution. If the child resides in an institution 
10.33 	specified in section 256B.35, the parent is responsible for the personal needs allowance 
10.34 	specified under that section in addition to the parental contribution determined under this 
10.35 	section. The parental contribution is reduced by any amount required to be paid directly to 
10.36 	the child pursuant to a court order, but only if actually paid.
11.1 	(c) The household size to be used in determining the amount of contribution under 
11.2 	paragraph (b) includes natural and adoptive parents and their dependents, including the 
11.3 	child receiving services. Adjustments in the contribution amount due to annual changes 
11.4 	in the federal poverty guidelines shall be implemented on the first day of July following 
11.5 	publication of the changes.
11.6 	(d) For purposes of paragraph (b), "income" means the adjusted gross income of the 
11.7 	natural or adoptive parents determined according to the previous year's federal tax form, 
11.8 	except, effective retroactive to July 1, 2003, taxable capital gains to the extent the funds 
11.9 	have been used to purchase a home shall not be counted as income.
11.10 	(e) The contribution shall be explained in writing to the parents at the time eligibility 
11.11 	for services is being determined. The contribution shall be made on a monthly basis 
11.12 	effective with the first month in which the child receives services. Annually upon 
11.13 	redetermination or at termination of eligibility, if the contribution exceeded the cost of 
11.14 	services provided, the local agency or the state shall reimburse that excess amount to 
11.15 	the parents, either by direct reimbursement if the parent is no longer required to pay 
11.16 	a contribution, or by a reduction in or waiver of parental fees until the excess amount 
11.17 	is exhausted.
11.18 	(f) The monthly contribution amount must be reviewed at least every 12 months; 
11.19 	when there is a change in household size; and when there is a loss of or gain in income 
11.20 	from one month to another in excess of ten percent. The local agency shall mail a written 
11.21 	notice 30 days in advance of the effective date of a change in the contribution amount. 
11.22 	A decrease in the contribution amount is effective in the month that the parent verifies a 
11.23 	reduction in income or change in household size.
11.24 	(g) Parents of a minor child who do not live with each other shall each pay the 
11.25 	contribution required under paragraph (a). An amount equal to the annual court-ordered 
11.26 	child support payment actually paid on behalf of the child receiving services shall be 
11.27 	deducted from the adjusted gross income of the parent making the payment prior to 
11.28 	calculating the parental contribution under paragraph (b).
11.29 	(h) The contribution under paragraph (b) shall be increased by an additional five 
11.30 	percent if the local agency determines that insurance coverage is available but not 
11.31 	obtained for the child. For purposes of this section, "available" means the insurance is a 
11.32 	benefit of employment for a family member at an annual cost of no more than five percent 
11.33 	of the family's annual income. For purposes of this section, "insurance" means health 
11.34 	and accident insurance coverage, enrollment in a nonprofit health service plan, health 
11.35 	maintenance organization, self-insured plan, or preferred provider organization.
12.1 	Parents who have more than one child receiving services shall not be required 
12.2 	to pay more than the amount for the child with the highest expenditures. There shall 
12.3 	be no resource contribution from the parents. The parent shall not be required to pay 
12.4 	a contribution in excess of the cost of the services provided to the child, not counting 
12.5 	payments made to school districts for education-related services. Notice of an increase in 
12.6 	fee payment must be given at least 30 days before the increased fee is due.
12.7 	(i) The contribution under paragraph (b) shall be reduced by $300 per fiscal year if, 
12.8 	in the 12 months prior to July 1:
12.9 	(1) the parent applied for insurance for the child;
12.10 	(2) the insurer denied insurance;
12.11 	(3) the parents submitted a complaint or appeal, in writing to the insurer, submitted 
12.12 	a complaint or appeal, in writing, to the commissioner of health or the commissioner of 
12.13 	commerce, or litigated the complaint or appeal; and
12.14 	(4) as a result of the dispute, the insurer reversed its decision and granted insurance.
12.15 	For purposes of this section, "insurance" has the meaning given in paragraph (h).
12.16 	A parent who has requested a reduction in the contribution amount under this 
12.17 	paragraph shall submit proof in the form and manner prescribed by the commissioner or 
12.18 	county agency, including, but not limited to, the insurer's denial of insurance, the written 
12.19 	letter or complaint of the parents, court documents, and the written response of the insurer 
12.20 	approving insurance. The determinations of the commissioner or county agency under this 
12.21 	paragraph are not rules subject to chapter 14.

12.22 	Sec. 4. Minnesota Statutes 2006, section 256J.01, is amended by adding a subdivision 
12.23 	to read:
12.24 		Subd. 6.Legislative approval to move programs or activities. The commissioner 
12.25 	shall not move programs or activities funded with MFIP or TANF maintenance of effort 
12.26 	funds to other funding sources without legislative approval.

12.27 	Sec. 5. Minnesota Statutes 2006, section 256J.021, is amended to read:
12.28 	256J.021 SEPARATE STATE PROGRAM FOR USE OF STATE MONEY.
12.29 	(a) Until October 1,  2006, the commissioner of human services must treat MFIP 
12.30 	expenditures made to or on behalf of any minor child under section 256J.02, subdivision 
12.31 	2, clause (1), who is a resident of this state under section 256J.12, and who is part of a 
12.32 	two-parent eligible household as expenditures under a separately funded state program 
12.33 	and report those expenditures to the federal Department of Health and Human Services as 
12.34 	separate state program expenditures under Code of Federal Regulations, title 45, section 
13.1 	263.5. Families receiving assistance under this section shall comply with all applicable 
13.2 	requirements in this chapter.
13.3 	(b) Beginning October 1, 2006, the commissioner of human services must treat 
13.4 	MFIP expenditures made to or on behalf of any minor child under section 256J.02, 
13.5 	subdivision 2, clause (1), who is a resident of this state under section 256J.12, and who is 
13.6 	part of a two-parent eligible household, as expenditures under a separately funded state 
13.7 	program. These expenditures shall not count toward the state's maintenance of effort 
13.8 	(MOE) requirements under the federal Temporary Assistance to Needy Families (TANF) 
13.9 	program except if counting certain families would allow the commissioner to avoid a 
13.10 	federal penalty. Families receiving assistance under this section must comply with all 
13.11 	applicable requirements in this chapter.
13.12 	(c) Beginning July 1, 2007, the commissioner of human services shall treat MFIP 
13.13 	expenditures made to or on behalf of any minor child who is part of a household that meets 
13.14 	criteria in section 256J.575, subdivision 3, as expenditures under a separately funded state 
13.15 	program under section 256J.575, subdivision 8.

13.16 	Sec. 6. Minnesota Statutes 2006, section 256J.08, subdivision 65, is amended to read:
13.17 		Subd. 65.Participant. (a) "Participant" means includes any of the following:
13.18 	(1) a person who is currently receiving cash assistance or the food portion available 
13.19 	through MFIP. A person who fails to withdraw or access electronically any portion of the 
13.20 	person's cash and food assistance payment by the end of the payment month, who makes a 
13.21 	written request for closure before the first of a payment month and repays cash and food 
13.22 	assistance electronically issued for that payment month within that payment month, or 
13.23 	who returns any uncashed assistance check and food coupons and withdraws from the 
13.24 	program is not a participant.;
13.25 	(2) a person who withdraws a cash or food assistance payment by electronic transfer 
13.26 	or receives and cashes an MFIP assistance check or food coupons and is subsequently 
13.27 	determined to be ineligible for assistance for that period of time is a participant, regardless 
13.28 	whether that assistance is repaid. The term "participant" includes;
13.29 	(3) the caregiver relative and the minor child whose needs are included in the 
13.30 	assistance payment.;
13.31 	(4) a person in an assistance unit who does not receive a cash and food assistance 
13.32 	payment because the case has been suspended from MFIP is a participant.;
13.33 	(5) a person who receives cash payments under the diversionary work program 
13.34 	under section 256J.95 is a participant.; and
14.1 	(6) a person who receives cash payments under the family stabilization services 
14.2 	under section 256J.575.
14.3 	(b) "Participant" does not include a person who fails to withdraw or access 
14.4 	electronically any portion of the person's cash and food assistance payment by the end of 
14.5 	the payment month, who makes a written request for closure before the first of a payment 
14.6 	month and repays cash and food assistance electronically issued for that payment month 
14.7 	within that payment month, or who returns any uncashed assistance check and food 
14.8 	coupons and withdraws from the program.

14.9 	Sec. 7. Minnesota Statutes 2006, section 256J.20, subdivision 3, is amended to read:
14.10 		Subd. 3.Other property limitations. To be eligible for MFIP, the equity value of 
14.11 	all nonexcluded real and personal property of the assistance unit must not exceed $2,000 
14.12 	for applicants and $5,000 for ongoing participants. The value of assets in clauses (1) to 
14.13 	(19) must be excluded when determining the equity value of real and personal property:
14.14 	(1) a licensed vehicle up to a loan value of less than or equal to $7,500. The county 
14.15 	agency shall apply any excess loan value as if it were equity value to the asset limit 
14.16 	described in this section. If the assistance unit owns more than one licensed vehicle, the 
14.17 	county agency shall determine the vehicle with the highest loan value and count only the 
14.18 	loan value over $7,500, the loan value of all additional vehicles and exclude the combined 
14.19 	loan value of less than or equal to $7,500. The county agency shall apply any excess loan 
14.20 	value as if it were equity value to the asset limit described in this section, excluding: (i) 
14.21 	the value of one vehicle per physically disabled person when the vehicle is needed to 
14.22 	transport the disabled unit member; this exclusion does not apply to mentally disabled 
14.23 	people; (ii) the value of special equipment for a disabled member of the assistance unit; 
14.24 	and (iii) any vehicle used for long-distance travel, other than daily commuting, for the 
14.25 	employment of a unit member.
14.26 	The county agency shall count the loan value of all other vehicles and apply this 
14.27 	amount as if it were equity value to the asset limit described in this section. To establish the 
14.28 	loan value of vehicles, a county agency must use the N.A.D.A. Official Used Car Guide, 
14.29 	Midwest Edition, for newer model cars. When a vehicle is not listed in the guidebook, 
14.30 	or when the applicant or participant disputes the loan value listed in the guidebook as 
14.31 	unreasonable given the condition of the particular vehicle, the county agency may require 
14.32 	the applicant or participant document the loan value by securing a written statement from 
14.33 	a motor vehicle dealer licensed under section 168.27, stating the amount that the dealer 
14.34 	would pay to purchase the vehicle. The county agency shall reimburse the applicant or 
14.35 	participant for the cost of a written statement that documents a lower loan value; 
15.1 	(2) the value of life insurance policies for members of the assistance unit;
15.2 	(3) one burial plot per member of an assistance unit;
15.3 	(4) the value of personal property needed to produce earned income, including 
15.4 	tools, implements, farm animals, inventory, business loans, business checking and 
15.5 	savings accounts used at least annually and used exclusively for the operation of a 
15.6 	self-employment business, and any motor vehicles if at least 50 percent of the vehicle's use 
15.7 	is to produce income and if the vehicles are essential for the self-employment business;
15.8 	(5) the value of personal property not otherwise specified which is commonly 
15.9 	used by household members in day-to-day living such as clothing, necessary household 
15.10 	furniture, equipment, and other basic maintenance items essential for daily living;
15.11 	(6) the value of real and personal property owned by a recipient of Supplemental 
15.12 	Security Income or Minnesota supplemental aid;
15.13 	(7) the value of corrective payments, but only for the month in which the payment 
15.14 	is received and for the following month;
15.15 	(8) a mobile home or other vehicle used by an applicant or participant as the 
15.16 	applicant's or participant's home;
15.17 	(9) money in a separate escrow account that is needed to pay real estate taxes or 
15.18 	insurance and that is used for this purpose;
15.19 	(10) money held in escrow to cover employee FICA, employee tax withholding, 
15.20 	sales tax withholding, employee worker compensation, business insurance, property rental, 
15.21 	property taxes, and other costs that are paid at least annually, but less often than monthly;
15.22 	(11) monthly assistance payments for the current month's or short-term emergency 
15.23 	needs under section 256J.626, subdivision 2; 
15.24 	(12) the value of school loans, grants, or scholarships for the period they are 
15.25 	intended to cover;
15.26 	(13) payments listed in section 256J.21, subdivision 2, clause (9), which are held 
15.27 	in escrow for a period not to exceed three months to replace or repair personal or real 
15.28 	property; 
15.29 	(14) income received in a budget month through the end of the payment month;
15.30 	(15) savings from earned income of a minor child or a minor parent that are set aside 
15.31 	in a separate account designated specifically for future education or employment costs;
15.32 	(16) the federal earned income credit, Minnesota working family credit, state and 
15.33 	federal income tax refunds, state homeowners and renters credits under chapter 290A, 
15.34 	property tax rebates and other federal or state tax rebates in the month received and the 
15.35 	following month;
16.1 	(17) payments excluded under federal law as long as those payments are held in a 
16.2 	separate account from any nonexcluded funds;
16.3 	(18) the assets of children ineligible to receive MFIP benefits because foster care or 
16.4 	adoption assistance payments are made on their behalf; and
16.5 	(19) the assets of persons whose income is excluded under section 256J.21, 
16.6 	subdivision 2, clause (43). 

16.7 	Sec. 8. Minnesota Statutes 2006, section 256J.32, subdivision 6, is amended to read:
16.8 		Subd. 6.Recertification. The county agency shall recertify eligibility in an annual 
16.9 	face-to-face interview with the participant and verify the following:
16.10 	(1) presence of the minor child in the home, if questionable;
16.11 	(2) income, unless excluded, including self-employment expenses used as a 
16.12 	deduction or deposits or withdrawals from business accounts;
16.13 	(3) assets when the value is within $200 of the asset limit;
16.14 	(4) information to establish an exception under section 256J.24, subdivision 9, 
16.15 	if questionable; and
16.16 	(5) inconsistent information, if related to eligibility; and
16.17 	(6) whether a single caregiver household meets requirements in section 256J.575, 
16.18 	subdivision 3.

16.19 	Sec. 9. Minnesota Statutes 2006, section 256J.425, subdivision 3, is amended to read:
16.20 		Subd. 3.Hard-to-employ participants. An assistance unit subject to the time 
16.21 	limit in section 256J.42, subdivision 1, is eligible to receive months of assistance under 
16.22 	a hardship extension if the participant who reached the time limit belongs to any of the 
16.23 	following groups: 
16.24 	(1) a person who is diagnosed by a licensed physician, psychological practitioner, 
16.25 	or other qualified professional, as developmentally disabled or mentally ill, and that 
16.26 	condition prevents the person from obtaining or retaining unsubsidized employment;
16.27 	(2) a person who:
16.28 	(i) has been assessed by a vocational specialist or the county agency to be 
16.29 	unemployable for purposes of this subdivision; or
16.30 	(ii) has an IQ below 80 who has been assessed by a vocational specialist or a county 
16.31 	agency to be employable, but not at a level that makes the participant eligible for an 
16.32 	extension under subdivision 4. The determination of IQ level must be made by a qualified 
16.33 	professional. In the case of a non-English-speaking person: (A) the determination must 
16.34 	be made by a qualified professional with experience conducting culturally appropriate 
17.1 	assessments, whenever possible; (B) the county may accept reports that identify an 
17.2 	IQ range as opposed to a specific score; (C) these reports must include a statement of 
17.3 	confidence in the results;
17.4 	(3) a person who is determined by a qualified professional to be learning disabled, 
17.5 	and the disability severely limits the person's ability to obtain, perform, or maintain 
17.6 	suitable employment. For purposes of the initial approval of a learning disability 
17.7 	extension, the determination must have been made or confirmed within the previous 12 
17.8 	months. In the case of a non-English-speaking person: (i) the determination must be made 
17.9 	by a qualified professional with experience conducting culturally appropriate assessments, 
17.10 	whenever possible; and (ii) these reports must include a statement of confidence in the 
17.11 	results. If a rehabilitation plan for a participant extended as learning disabled is developed 
17.12 	or approved by the county agency, the plan must be incorporated into the employment 
17.13 	plan. However, a rehabilitation plan does not replace the requirement to develop and 
17.14 	comply with an employment plan under section 256J.521; or
17.15 	(4) a person who has been granted a family violence waiver, and who is complying 
17.16 	with an employment plan under section 256J.521, subdivision 3; or
17.17 	(5) a participant who falls under section 256J.561, subdivision 2, paragraph 
17.18 	(d), and who is complying with an employment plan tailored to recognize the special 
17.19 	circumstances of the caregivers and family, including limitations due to illness or 
17.20 	disability, and caregiving needs. 

17.21 	Sec. 10. Minnesota Statutes 2006, section 256J.425, subdivision 4, is amended to read:
17.22 		Subd. 4.Employed participants. (a) An assistance unit subject to the time limit 
17.23 	under section 256J.42, subdivision 1, is eligible to receive assistance under a hardship 
17.24 	extension if the participant who reached the time limit belongs to: 
17.25 	(1) a one-parent assistance unit in which the participant is participating in work 
17.26 	activities for at least 30 hours per week, of which an average of at least 25 hours per week 
17.27 	every month are spent participating in employment;
17.28 	(2) a two-parent assistance unit in which the participants are participating in work 
17.29 	activities for at least 55 hours per week, of which an average of at least 45 hours per week 
17.30 	every month are spent participating in employment; or
17.31 	(3) an assistance unit in which a participant is participating in employment for fewer 
17.32 	hours than those specified in clause (1) or (2), and the participant submits verification from 
17.33 	a qualified professional, in a form acceptable to the commissioner, stating that the number 
17.34 	of hours the participant may work is limited due to illness or disability, as long as the 
17.35 	participant is participating in employment for at least the number of hours specified by the 
18.1 	qualified professional. The participant must be following the treatment recommendations 
18.2 	of the qualified professional providing the verification. The commissioner shall develop a 
18.3 	form to be completed and signed by the qualified professional, documenting the diagnosis 
18.4 	and any additional information necessary to document the functional limitations of the 
18.5 	participant that limit work hours. If the participant is part of a two-parent assistance unit, 
18.6 	the other parent must be treated as a one-parent assistance unit for purposes of meeting the 
18.7 	work requirements under this subdivision.
18.8 	(b) For purposes of this section, employment means:
18.9 	(1) unsubsidized employment under section 256J.49, subdivision 13, clause (1); 
18.10 	(2) subsidized employment under section 256J.49, subdivision 13, clause (2); 
18.11 	(3) on-the-job training under section 256J.49, subdivision 13, clause (2); 
18.12 	(4) an apprenticeship under section 256J.49, subdivision 13, clause (1); 
18.13 	(5) supported work under section 256J.49, subdivision 13, clause (2); 
18.14 	(6) a combination of clauses (1) to (5); or
18.15 	(7) child care under section 256J.49, subdivision 13, clause (7), if it is in combination 
18.16 	with paid employment. 
18.17 	(c) If a participant is complying with a child protection plan under chapter 260C, 
18.18 	the number of hours required under the child protection plan count toward the number 
18.19 	of hours required under this subdivision.
18.20 	(d)(c) The county shall provide the opportunity for subsidized employment to 
18.21 	participants needing that type of employment within available appropriations.
18.22 	(e)(d) To be eligible for a hardship extension for employed participants under this 
18.23 	subdivision, a participant must be in compliance for at least ten out of the 12 months 
18.24 	the participant received MFIP immediately preceding the participant's 61st month on 
18.25 	assistance. If ten or fewer months of eligibility for TANF assistance remain at the time the 
18.26 	participant from another state applies for assistance, the participant must be in compliance 
18.27 	every month.
18.28 	(f)(e) The employment plan developed under section 256J.521, subdivision 2, for 
18.29 	participants under this subdivision must contain at least the minimum number of hours 
18.30 	specified in paragraph (a) for the purpose of meeting the requirements for an extension 
18.31 	under this subdivision. The job counselor and the participant must sign the employment 
18.32 	plan to indicate agreement between the job counselor and the participant on the contents 
18.33 	of the plan. 
18.34 	(g)(f) Participants who fail to meet the requirements in paragraph (a), without 
18.35 	good cause under section 256J.57, shall be sanctioned or permanently disqualified under 
18.36 	subdivision 6. Good cause may only be granted for that portion of the month for which 
19.1 	the good cause reason applies. Participants must meet all remaining requirements in the 
19.2 	approved employment plan or be subject to sanction or permanent disqualification. 
19.3 	(h)(g) If the noncompliance with an employment plan is due to the involuntary loss 
19.4 	of employment, the participant is exempt from the hourly employment requirement under 
19.5 	this subdivision for one month. Participants must meet all remaining requirements in the 
19.6 	approved employment plan or be subject to sanction or permanent disqualification. This 
19.7 	exemption is available to each participant two times in a 12-month period.

19.8 	Sec. 11. Minnesota Statutes 2006, section 256J.49, subdivision 13, is amended to read:
19.9 		Subd. 13.Work activity. "Work activity" means any activity in a participant's 
19.10 	approved employment plan that leads to employment. For purposes of the MFIP program, 
19.11 	this includes activities that meet the definition of work activity under the participation 
19.12 	requirements of TANF. Work activity includes:
19.13 	(1) unsubsidized employment, including work study and paid apprenticeships or 
19.14 	internships;
19.15 	(2) subsidized private sector or public sector employment, including grant diversion 
19.16 	as specified in section 256J.69, on-the-job training as specified in section 256J.66, 
19.17 	the self-employment investment demonstration program (SEID) as specified in section 
19.18 	256J.65, paid work experience, and supported work when a wage subsidy is provided; 
19.19 	(3) unpaid work experience, including community service, volunteer work, 
19.20 	the community work experience program as specified in section 256J.67, unpaid 
19.21 	apprenticeships or internships, and supported work when a wage subsidy is not provided. 
19.22 	Unpaid work performed in return for cash assistance is prohibited and does not count 
19.23 	as a work activity, unless the participant voluntarily agrees, in writing, to engage in 
19.24 	unpaid work in return for cash assistance. The participant may terminate the unpaid 
19.25 	work arrangement, in writing, at any time; 
19.26 	(4) job search including job readiness assistance, job clubs, job placement, 
19.27 	job-related counseling, and job retention services;
19.28 	(5) job readiness education, including English as a second language (ESL) or 
19.29 	functional work literacy classes as limited by the provisions of section 256J.531, 
19.30 	subdivision 2, general educational development (GED) course work, high school 
19.31 	completion, and adult basic education as limited by the provisions of section 256J.531, 
19.32 	subdivision 1; 
19.33 	(6) job skills training directly related to employment, including education and 
19.34 	training that can reasonably be expected to lead to employment, as limited by the 
19.35 	provisions of section 256J.53; 
20.1 	(7) providing child care services to a participant who is working in a community 
20.2 	service program;
20.3 	(8) activities included in the employment plan that is developed under section 
20.4 	256J.521, subdivision 3; and 
20.5 	(9) preemployment activities including chemical and mental health assessments, 
20.6 	treatment, and services; learning disabilities services; child protective services; family 
20.7 	stabilization services; or other programs designed to enhance employability.

20.8 	Sec. 12. Minnesota Statutes 2006, section 256J.521, subdivision 1, is amended to read:
20.9 		Subdivision 1.Assessments. (a) For purposes of MFIP employment services, 
20.10 	assessment is a continuing process of gathering information related to employability 
20.11 	for the purpose of identifying both participant's strengths and strategies for coping with 
20.12 	issues that interfere with employment. The job counselor must use information from the 
20.13 	assessment process to develop and update the employment plan under subdivision 2 or 3, 
20.14 	as appropriate, and to determine whether the participant qualifies for a family violence 
20.15 	waiver including an employment plan under subdivision 3, and to determine whether the 
20.16 	participant should be referred to the family stabilization services  under section 256J.575.
20.17 	(b) The scope of assessment must cover at least the following areas:
20.18 	(1) basic information about the participant's ability to obtain and retain employment, 
20.19 	including: a review of the participant's education level; interests, skills, and abilities; prior 
20.20 	employment or work experience; transferable work skills; child care and transportation 
20.21 	needs;
20.22 	(2) identification of personal and family circumstances that impact the participant's 
20.23 	ability to obtain and retain employment, including: any special needs of the children, the 
20.24 	level of English proficiency, family violence issues, and any involvement with social 
20.25 	services or the legal system;
20.26 	(3) the results of a mental and chemical health screening tool designed by the 
20.27 	commissioner and results of the brief screening tool for special learning needs. Screening 
20.28 	tools for mental and chemical health and special learning needs must be approved by the 
20.29 	commissioner and may only be administered by job counselors or county staff trained in 
20.30 	using such screening tools. The commissioner shall work with county agencies to develop 
20.31 	protocols for referrals and follow-up actions after screens are administered to participants, 
20.32 	including guidance on how employment plans may be modified based upon outcomes 
20.33 	of certain screens. Participants must be told of the purpose of the screens and how the 
20.34 	information will be used to assist the participant in identifying and overcoming barriers to 
20.35 	employment. Screening for mental and chemical health and special learning needs must 
21.1 	be completed by participants who are unable to find suitable employment after six weeks 
21.2 	of job search under subdivision 2, paragraph (b), and participants who are determined to 
21.3 	have barriers to employment under subdivision 2, paragraph (d). Failure to complete the 
21.4 	screens will result in sanction under section 256J.46; and 
21.5 	(4) a comprehensive review of participation and progress for participants who have 
21.6 	received MFIP assistance and have not worked in unsubsidized employment during the 
21.7 	past 12 months. The purpose of the review is to determine the need for additional services 
21.8 	and supports, including placement in subsidized employment or unpaid work experience 
21.9 	under section 256J.49, subdivision 13, or referral to the family stabilization services 
21.10 	under section 256J.575. 
21.11 	(c) Information gathered during a caregiver's participation in the diversionary work 
21.12 	program under section 256J.95 must be incorporated into the assessment process. 
21.13 	(d) The job counselor may require the participant to complete a professional chemical 
21.14 	use assessment to be performed according to the rules adopted under section 254A.03, 
21.15 	subdivision 3, including provisions in the administrative rules which recognize the cultural 
21.16 	background of the participant, or a professional psychological assessment as a component 
21.17 	of the assessment process, when the job counselor has a reasonable belief, based on 
21.18 	objective evidence, that a participant's ability to obtain and retain suitable employment 
21.19 	is impaired by a medical condition. The job counselor may assist the participant with 
21.20 	arranging services, including child care assistance and transportation, necessary to meet 
21.21 	needs identified by the assessment. Data gathered as part of a professional assessment 
21.22 	must be classified and disclosed according to the provisions in section 13.46. 

21.23 	Sec. 13. Minnesota Statutes 2006, section 256J.521, subdivision 2, is amended to read:
21.24 		Subd. 2.Employment plan; contents. (a) Based on the assessment under 
21.25 	subdivision 1, the job counselor and the participant must develop an employment plan 
21.26 	that includes participation in activities and hours that meet the requirements of section 
21.27 	256J.55, subdivision 1. The purpose of the employment plan is to identify for each 
21.28 	participant the most direct path to unsubsidized employment and any subsequent steps that 
21.29 	support long-term economic stability. The employment plan should be developed using 
21.30 	the highest level of activity appropriate for the participant. Activities must be chosen from 
21.31 	clauses (1) to (6), which are listed in order of preference. Notwithstanding this order of 
21.32 	preference for activities, priority must be given for activities related to a family violence 
21.33 	waiver when developing the employment plan. The employment plan must also list the 
21.34 	specific steps the participant will take to obtain employment, including steps necessary 
22.1 	for the participant to progress from one level of activity to another, and a timetable for 
22.2 	completion of each step. Levels of activity include: 
22.3 	(1) unsubsidized employment;
22.4 	(2) job search;
22.5 	(3) subsidized employment or unpaid work experience;
22.6 	(4) unsubsidized employment and job readiness education or job skills training;
22.7 	(5) unsubsidized employment or unpaid work experience and activities related to 
22.8 	a family violence waiver or preemployment needs; and
22.9 	(6) activities related to a family violence waiver or preemployment needs.
22.10 	(b) Participants who are determined to possess sufficient skills such that the 
22.11 	participant is likely to succeed in obtaining unsubsidized employment must job search at 
22.12 	least 30 hours per week for up to six weeks and accept any offer of suitable employment. 
22.13 	The remaining hours necessary to meet the requirements of section 256J.55, subdivision 
22.14 	1, may be met through participation in other work activities under section 256J.49, 
22.15 	subdivision 13. The participant's employment plan must specify, at a minimum: (1) 
22.16 	whether the job search is supervised or unsupervised; (2) support services that will 
22.17 	be provided; and (3) how frequently the participant must report to the job counselor. 
22.18 	Participants who are unable to find suitable employment after six weeks must meet 
22.19 	with the job counselor to determine whether other activities in paragraph (a) should be 
22.20 	incorporated into the employment plan. Job search activities which are continued after six 
22.21 	weeks must be structured and supervised. 
22.22 	(c) Beginning July 1, 2004, activities and hourly requirements in the employment 
22.23 	plan may be adjusted as necessary to accommodate the personal and family circumstances 
22.24 	of participants identified under section 256J.561, subdivision 2, paragraph (d). Participants 
22.25 	who no longer meet the provisions of section 256J.561, subdivision 2, paragraph (d), 
22.26 	must meet with the job counselor within ten days of the determination to revise the 
22.27 	employment plan. 
22.28 	(d) Participants who are determined to have barriers to obtaining or retaining 
22.29 	employment that will not be overcome during six weeks of job search under paragraph (b) 
22.30 	must work with the job counselor to develop an employment plan that addresses those 
22.31 	barriers by incorporating appropriate activities from paragraph (a), clauses (1) to (6). 
22.32 	The employment plan must include enough hours to meet the participation requirements 
22.33 	in section 256J.55, subdivision 1, unless a compelling reason to require fewer hours 
22.34 	is noted in the participant's file. 
22.35 	(e) The job counselor and the participant must sign the employment plan to indicate 
22.36 	agreement on the contents. Failure to develop or comply with activities in the plan, or 
23.1 	voluntarily quitting suitable employment without good cause, will result in the imposition 
23.2 	of a sanction under section 256J.46. 
23.3 	(f) Employment plans must be reviewed at least every three months to determine 
23.4 	whether activities and hourly requirements should be revised.  The job counselor is 
23.5 	encouraged to allow participants who are participating in at least 20 hours of work 
23.6 	activities to also participate in education and training activities in order to meet the federal 
23.7 	hourly participation rates.

23.8 	Sec. 14. Minnesota Statutes 2006, section 256J.53, subdivision 2, is amended to read:
23.9 		Subd. 2.Approval of postsecondary education or training. (a) In order for a 
23.10 	postsecondary education or training program to be an approved activity in an employment 
23.11 	plan, the participant must be working in unsubsidized employment at least 20 hours per 
23.12 	week.
23.13 	(b) Participants seeking approval of a postsecondary education or training plan 
23.14 	must provide documentation that:
23.15 	(1) the employment goal can only be met with the additional education or training;
23.16 	(2) there are suitable employment opportunities that require the specific education or 
23.17 	training in the area in which the participant resides or is willing to reside;
23.18 	(3) the education or training will result in significantly higher wages for the 
23.19 	participant than the participant could earn without the education or training;
23.20 	(4) the participant can meet the requirements for admission into the program; and
23.21 	(5) there is a reasonable expectation that the participant will complete the training 
23.22 	program based on such factors as the participant's MFIP assessment, previous education, 
23.23 	training, and work history; current motivation; and changes in previous circumstances.
23.24 	(c) The hourly unsubsidized employment requirement does not apply for intensive 
23.25 	education or training programs lasting 12 weeks or less when full-time attendance is 
23.26 	required.
23.27 	(d)(b) Participants with an approved employment plan in place on July 1, 2003, 
23.28 	which includes more than 12 months of postsecondary education or training shall be 
23.29 	allowed to complete that plan provided that hourly requirements in section 256J.55, 
23.30 	subdivision 1, and conditions specified in paragraph (b) (a), and subdivisions 3 and 5 are 
23.31 	met. A participant whose case is subsequently closed for three months or less for reasons 
23.32 	other than noncompliance with program requirements and who returns to MFIP shall 
23.33 	be allowed to complete that plan provided that hourly requirements in section 256J.55, 
23.34 	subdivision 1, and conditions specified in paragraph (b)(a), and subdivisions 3 and 5 are 
23.35 	met. 

24.1 	Sec. 15. Minnesota Statutes 2006, section 256J.55, subdivision 1, is amended to read:
24.2 		Subdivision 1.Participation requirements. (a) All caregivers must participate 
24.3 	in employment services under sections 256J.515 to 256J.57 concurrent with receipt of 
24.4 	MFIP assistance. 
24.5 	(b) Until July 1, 2004, participants who meet the requirements of section 256J.56 are 
24.6 	exempt from participation requirements. 
24.7 	(c) Participants under paragraph (a) must develop and comply with an employment 
24.8 	plan under section 256J.521 or section 256J.54 in the case of a participant under the age of 
24.9 	20 who has not obtained a high school diploma or its equivalent. 
24.10 	(d) With the exception of participants under the age of 20 who must meet the 
24.11 	education requirements of section 256J.54, all participants must meet the hourly 
24.12 	participation requirements of TANF or the hourly requirements listed in clauses (1) to 
24.13 	(3), whichever is higher. 
24.14 	(1) In single-parent families with no children under six years of age, the job 
24.15 	counselor and the caregiver must develop an employment plan that includes 30 to 35hours 
24.16 	per week of work activities130 hours per month of work activities.
24.17 	(2) In single-parent families with a child under six years of age, the job counselor 
24.18 	and the caregiver must develop an employment plan that includes 20 to 35 hours per week 
24.19 	of work activities87 hours per month of work activities.
24.20 	(3) In two-parent families, the job counselor and the caregivers must develop 
24.21 	employment plans which result in a combined total of at least 55 hours per week of work 
24.22 	activities.
24.23 	(e) Failure to participate in employment services, including the requirement to 
24.24 	develop and comply with an employment plan, including hourly requirements, without 
24.25 	good cause under section 256J.57, shall result in the imposition of a sanction under section 
24.26 	256J.46. 

24.27 	Sec. 16. [256J.575] FAMILY STABILIZATION SERVICES.
24.28 		Subdivision 1.Purpose. (a) The family stabilization services serve families who are 
24.29 	not making significant progress within the Minnesota family investment program (MFIP) 
24.30 	due to a variety of barriers to employment.
24.31 	(b) The goal of the services is to stabilize and improve the lives of families at risk 
24.32 	of long-term welfare dependency or family instability due to employment barriers such 
24.33 	as physical disability, mental disability, age, or providing care for a disabled household 
24.34 	member. These services promote and support families to achieve the greatest possible 
24.35 	degree of self-sufficiency.
25.1 		Subd. 2.Definitions. The terms used in this section have the meanings given them 
25.2 	in paragraphs (a) to (d).
25.3 	(a) "Family stabilization services" means the services established under this section.
25.4 	(b) "Case management" means the services provided by or through the county 
25.5 	agency or through the employment services agency to participating families, including 
25.6 	assessment, information, referrals, and assistance in the preparation and implementation 
25.7 	of a family stabilization plan under subdivision 5.
25.8 	(c) "Family stabilization plan" means a plan developed by a case manager and 
25.9 	the participant, which identifies the participant's most appropriate path to unsubsidized 
25.10 	employment, family stability, and barrier reduction, taking into account the family's 
25.11 	circumstances.
25.12 	(d) "Family stabilization services" means programs, activities, and services in this 
25.13 	section that provide participants and their family members with assistance regarding, 
25.14 	but not limited to:
25.15 	(1) obtaining and retaining unsubsidized employment;
25.16 	(2) family stability;
25.17 	(3) economic stability; and
25.18 	(4) barrier reduction.
25.19 	The goal of the services is to achieve the greatest degree of economic self-sufficiency 
25.20 	and family well-being possible for the family under the circumstances.
25.21 		Subd. 3.Eligibility. (a) The following MFIP or diversionary work program (DWP) 
25.22 	participants are eligible for the services under this section:
25.23 	(1) a participant identified under section 256J.561, subdivision 2, paragraph (d), who 
25.24 	has or is eligible for an employment plan developed under section 256J.521, subdivision 
25.25 	2, paragraph (c);
25.26 	(2) a participant identified under section 256J.95, subdivision 12, paragraph (b), as 
25.27 	unlikely to benefit from the diversionary work program;
25.28 	(3) a participant who meets the requirements for or has been granted a hardship 
25.29 	extension under section 256J.425, subdivision 2 or 3;
25.30 	(4) a participant who is applying for supplemental security income or Social Security 
25.31 	disability insurance; 
25.32 	(5) a participant who is a noncitizen who has been in the United States for 12 or 
25.33 	fewer months; and
25.34 	(6) a new MFIP participant, for the first benefit month the participant receives 
25.35 	assistance or when the participant's employment plan is completed, whichever is sooner.
26.1 	(b) Families must meet all other eligibility requirements for MFIP established in 
26.2 	this chapter. Families are eligible for financial assistance to the same extent as if they 
26.3 	were participating in MFIP.
26.4 	(c) A participant under paragraph (a), clause (5), must be provided with English as a 
26.5 	second language opportunities and skills training for up to 12 months. After 12 months, 
26.6 	the case manager and participant must determine whether the participant should continue 
26.7 	with English as a second language classes or skills training, or both, or if the participant 
26.8 	should become an MFIP participant.
26.9 		Subd. 4.Universal participation. All caregivers must participate in family 
26.10 	stabilization services as defined in subdivision 2.
26.11 		Subd. 5.Case management; family stabilization plans; coordinated services.
 26.12 	(a) The county agency or employment services provider shall provide family stabilization 
26.13 	services to families through a case management model. A case manager shall be assigned 
26.14 	to each participating family within 30 days after the family begins to receive financial 
26.15 	assistance as a participant of the family stabilization services. The case manager, with 
26.16 	the full involvement of the participant, shall recommend, and the county agency shall 
26.17 	establish and modify as necessary, a family stabilization plan for each participating family. 
26.18 	If a participant is already assigned to a county case manager or a county-designated case 
26.19 	manager in social services, disability services, or housing services that case manager 
26.20 	already assigned may be the case manager for purposes of these services.
26.21 	(b) The family stabilization plan must include:
26.22 	(1) each participant's plan for long-term self-sufficiency, including an employment 
26.23 	goal where applicable;
26.24 	(2) an assessment of each participant's strengths and barriers, and any special 
26.25 	circumstances of the participant's family that impact, or are likely to impact, the 
26.26 	participant's progress towards the goals in the plan; and
26.27 	(3) an identification of the services, supports, education, training, and 
26.28 	accommodations needed to reduce or overcome any barriers to enable the family to 
26.29 	achieve self-sufficiency and to fulfill each caregiver's personal and family responsibilities.
26.30 	(c) The case manager and the participant shall meet within 30 days of the family's 
26.31 	referral to the case manager. The initial family stabilization plan must be completed within 
26.32 	30 days of the first meeting with the case manager. The case manager shall establish a 
26.33 	schedule for periodic review of the family stabilization plan that includes personal contact 
26.34 	with the participant at least once per month. In addition, the case manager shall review 
26.35 	and, if necessary, modify the plan under the following circumstances:
26.36 	(1) there is a lack of satisfactory progress in achieving the goals of the plan;
27.1 	(2) the participant has lost unsubsidized or subsidized employment;
27.2 	(3) a family member has failed or is unable to comply with a family stabilization 
27.3 	plan requirement;
27.4 	(4) services, supports, or other activities required by the plan are unavailable;
27.5 	(5) changes to the plan are needed to promote the well-being of the children; or
27.6 	(6) the participant and case manager determine that the plan is no longer appropriate 
27.7 	for any other reason.
27.8 		Subd. 6.Cooperation with services requirements. (a) To be eligible, a participant 
27.9 	shall comply with paragraphs (b) to (e).
27.10 	(b) Participants shall engage in family stabilization plan services for the appropriate 
27.11 	number of hours per week that the activities are scheduled and available, unless good 
27.12 	cause exists for not doing so, as defined in section 256J.57, subdivision 1. The appropriate 
27.13 	number of hours must be based on the participant's plan.
27.14 	(c) The case manager shall review the participant's progress toward the goals in the 
27.15 	family stabilization plan every six months to determine whether conditions have changed, 
27.16 	including whether revisions to the plan are needed.
27.17 	(d) When the participant has increased participation in work-related activities 
27.18 	sufficient to meet the federal participation requirements of TANF, the county agency shall 
27.19 	refer the participant to the MFIP program and assign the participant to a job counselor. 
27.20 	The participant and the job counselor shall meet within 15 days of referral to the MFIP 
27.21 	program to develop an employment plan under section 256J.521. No reapplication is 
27.22 	necessary and financial assistance continues without interruption.
27.23 	(e) A participant's requirement to comply with any or all family stabilization plan 
27.24 	requirements under this subdivision is excused when the case management services, 
27.25 	training and educational services, and family support services identified in the participant's 
27.26 	family stabilization plan are unavailable for reasons beyond the control of the participant, 
27.27 	including when money appropriated is not sufficient to provide the services.
27.28 		Subd. 7.Sanctions. (a) The financial assistance grant of a participating family is 
27.29 	reduced according to section 256J.46, if a participating adult fails without good cause to 
27.30 	comply or continue to comply with the family stabilization plan requirements in this 
27.31 	subdivision, unless compliance has been excused under subdivision 6, paragraph (e).
27.32 	(b) Given the purpose of the family stabilization services  in this section and the 
27.33 	nature of the underlying family circumstances that act as barriers to both employment and 
27.34 	full compliance with program requirements, sanctions are appropriate only when it is clear 
27.35 	that there is both the ability to comply and willful noncompliance by the participant, as 
27.36 	confirmed by a behavioral health or medical professional.
28.1 	(c) Prior to the imposition of a sanction, the county agency or employment services 
28.2 	provider shall review the participant's case to determine if the family stabilization plan 
28.3 	is still appropriate and meet with the participant face-to-face. The participant may bring 
28.4 	an advocate to the face-to-face meeting. 
28.5 	During the face-to-face meeting, the county agency shall:
28.6 	(1) determine whether the continued noncompliance can be explained and mitigated 
28.7 	by providing a needed family stabilization service, as defined in subdivision 2, paragraph 
28.8 	(d);
28.9 	(2) determine whether the participant qualifies for a good cause exception under 
28.10 	section 256J.57, or if the sanction is for noncooperation with child support requirements, 
28.11 	determine if the participant qualifies for a good cause exemption under section 256.741, 
28.12 	subdivision 10;
28.13 	(3) determine whether activities in the family stabilization plan are appropriate 
28.14 	based on the family's circumstances;
28.15 	(4) explain the consequences of continuing noncompliance;
28.16 	(5) identify other resources that may be available to the participant to meet the 
28.17 	needs of the family; and
28.18 	(6) inform the participant of the right to appeal under section 256J.40.
28.19 	If the lack of an identified activity or service can explain the noncompliance, the 
28.20 	county shall work with the participant to provide the identified activity.
28.21 	(d) If the participant fails to come to the face-to-face meeting, the case manager or a 
28.22 	designee shall attempt at least one home visit. If a face-to-face meeting is not conducted, 
28.23 	the county agency shall send the participant a written notice that includes the information 
28.24 	under paragraph (c).
28.25 	(e) After the requirements of paragraphs (c) and (d) are met and prior to imposition 
28.26 	of a sanction, the county agency shall provide a notice of intent to sanction under section 
28.27 	256J.57, subdivision 2, and, when applicable, a notice of adverse action under section 
28.28 	256J.31.
28.29 	(f) Section 256J.57 applies to this section except to the extent that it is modified 
28.30 	by this subdivision.
28.31 		Subd. 8.Funding. (a) The commissioner of human services shall treat MFIP 
28.32 	expenditures made to or on behalf of any minor child under this section, who is part of a 
28.33 	household that meets criteria in subdivision 3, as expenditures under a separately funded 
28.34 	state program. These expenditures shall not count toward the state's maintenance of effort 
28.35 	requirements under the federal TANF program.
29.1 	(b) A family is no longer part of a separately funded program under this section if 
29.2 	the caregiver no longer meets the criteria for family stabilization services in subdivision 
29.3 	3, or if it is determined at recertification that the caregiver is meeting the federal work 
29.4 	participation rate, whichever occurs sooner.

29.5 	Sec. 17. [256J.621] WORK PARTICIPATION BONUS.
29.6 	(a) Upon exiting the diversionary work program (DWP) or upon terminating 
29.7 	MFIP cash assistance with earnings, a participant who is employed may be eligible for 
29.8 	transitional assistance of $100 per month to assist in meeting the family's basic needs as 
29.9 	the participant continues to move toward self-sufficiency.
29.10 	(b) To be eligible for a transitional assistance payment, the participant shall not 
29.11 	receive MFIP cash assistance or diversionary work program assistance during the month 
29.12 	and the participant or participants must meet the following work requirements:
29.13 	(1) if the participant is a single caregiver and has a child under six years of age, the 
29.14 	participant must be employed at least 87 hours per month;
29.15 	(2) if the participant is a single caregiver and does not have a child under six years of 
29.16 	age, the participant must be employed at least 130 hours per month; or
29.17 	(3) if the household is a two-parent family, at least one of the parents must be 
29.18 	employed an average of at least 130 hours per month.
29.19 	Whenever a participant exits the diversionary work program or is terminated from 
29.20 	MFIP cash assistance and meets the other criteria in this section, transitional assistance is 
29.21 	available for up to 24 consecutive months.

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

29.23 	Sec. 18. Minnesota Statutes 2006, section 256J.626, subdivision 1, is amended to read:
29.24 		Subdivision 1.Consolidated fund. The consolidated fund is established to support 
29.25 	counties and tribes in meeting their duties under this chapter. Counties and tribes must use 
29.26 	funds from the consolidated fund to develop programs and services that are designed to 
29.27 	improve participant outcomes as measured in section 256J.751, subdivision 2. Counties 
29.28 	may use the funds for any allowable expenditures under subdivision 2, including case 
29.29 	management. Tribes may use the funds for any allowable expenditures under subdivision 
29.30 	2, except those in clauses (1) and (6). 

29.31 	Sec. 19. Minnesota Statutes 2006, section 256J.626, subdivision 2, is amended to read:
29.32 		Subd. 2.Allowable expenditures. (a) The commissioner must restrict expenditures 
29.33 	under the consolidated fund to benefits and services allowed under title IV-A of the federal 
30.1 	Social Security Act. Allowable expenditures under the consolidated fund may include, but 
30.2 	are not limited to:
30.3 	(1) short-term, nonrecurring shelter and utility needs that are excluded from the 
30.4 	definition of assistance under Code of Federal Regulations, title 45, section 260.31, for 
30.5 	families who meet the residency requirement in section 256J.12, subdivisions 1 and 1a. 
30.6 	Payments under this subdivision are not considered TANF cash assistance and are not 
30.7 	counted towards the 60-month time limit; 
30.8 	(2) transportation needed to obtain or retain employment or to participate in other 
30.9 	approved work activities or activities under a family stabilization plan;
30.10 	(3) direct and administrative costs of staff to deliver employment services for MFIP 
30.11 	or,  the diversionary work program, or the family stabilization services;  to administer 
30.12 	financial assistance,;  and to provide specialized services intended to assist hard-to-employ 
30.13 	participants to transition to work or transition from the family stabilization services  to 
30.14 	MFIP;
30.15 	(4) costs of education and training including functional work literacy and English as 
30.16 	a second language;
30.17 	(5) cost of work supports including tools, clothing, boots, telephone service, and 
30.18 	other work-related expenses;
30.19 	(6) county administrative expenses as defined in Code of Federal Regulations, title 
30.20 	45, section 260(b);
30.21 	(7) services to parenting and pregnant teens;
30.22 	(8) supported work;
30.23 	(9) wage subsidies;
30.24 	(10) child care needed for MFIP or, the  diversionary work program, or the family 
30.25 	stabilization services   participants to participate in social services;
30.26 	(11) child care to ensure that families leaving MFIP or diversionary work program 
30.27 	will continue to receive child care assistance from the time the family no longer qualifies 
30.28 	for transition year child care until an opening occurs under the basic sliding fee child 
30.29 	care program; and
30.30 	(12) services to help noncustodial parents who live in Minnesota and have minor 
30.31 	children receiving MFIP or DWP assistance, but do not live in the same household as the 
30.32 	child, obtain or retain employment; and
30.33 	(13) services to help families participating in the family stabilization services 
30.34 	achieve the greatest possible degree of self-sufficiency.
30.35 	(b) Administrative costs that are not matched with county funds as provided in 
30.36 	subdivision 8 may not exceed 7.5 percent of a county's or 15 percent of a tribe's allocation 
31.1 	under this section. The commissioner shall define administrative costs for purposes of 
31.2 	this subdivision.
31.3 	(c) The commissioner may waive the cap on administrative costs for a county or tribe 
31.4 	that elects to provide an approved supported employment, unpaid work, or community 
31.5 	work experience program for a major segment of the county's or tribe's MFIP population. 
31.6 	The county or tribe must apply for the waiver on forms provided by the commissioner. In 
31.7 	no case shall total administrative costs exceed the TANF limits.

31.8 	Sec. 20. Minnesota Statutes 2006, section 256J.626, subdivision 3, is amended to read:
31.9 		Subd. 3.Eligibility for services. Families with a minor child, a pregnant woman, 
31.10 	or a noncustodial parent of a minor child receiving assistance, with incomes below 200 
31.11 	percent of the federal poverty guideline for a family of the applicable size, are eligible 
31.12 	for services funded under the consolidated fund. Counties and tribes must give priority 
31.13 	to families currently receiving MFIP or, the  diversionary work program, or the family 
31.14 	stabilization services, and families at risk of receiving MFIP or diversionary work program.

31.15 	Sec. 21. Minnesota Statutes 2006, section 256J.626, subdivision 4, is amended to read:
31.16 		Subd. 4.County and tribal biennial service agreements. (a) Effective January 1, 
31.17 	2004, and each two-year period thereafter, each county and tribe must have in place an 
31.18 	approved biennial service agreement related to the services and programs in this chapter. 
31.19 	In counties with a city of the first class with a population over 300,000, the county must 
31.20 	consider a service agreement that includes a jointly developed plan for the delivery of 
31.21 	employment services with the city. Counties may collaborate to develop multicounty, 
31.22 	multitribal, or regional service agreements.
31.23 	(b) The service agreements will be completed in a form prescribed by the 
31.24 	commissioner. The agreement must include:
31.25 	(1) a statement of the needs of the service population and strengths and resources 
31.26 	in the community;
31.27 	(2) numerical goals for participant outcomes measures to be accomplished during 
31.28 	the biennial period. The commissioner may identify outcomes from section 256J.751, 
31.29 	subdivision 2, as core outcomes for all counties and tribes; 
31.30 	(3) strategies the county or tribe will pursue to achieve the outcome targets. 
31.31 	Strategies must include specification of how funds under this section will be used and may 
31.32 	include community partnerships that will be established or strengthened; and
31.33 	(4) strategies the county or tribe will pursue under the family stabilization services; 
31.34 	and
32.1 	(5) other items prescribed by the commissioner in consultation with counties and 
32.2 	tribes.
32.3 	(c) The commissioner shall provide each county and tribe with information needed 
32.4 	to complete an agreement, including: (1) information on MFIP cases in the county or 
32.5 	tribe; (2) comparisons with the rest of the state; (3) baseline performance on outcome 
32.6 	measures; and (4) promising program practices.
32.7 	(d) The service agreement must be submitted to the commissioner by October 15, 
32.8 	2003, and October 15 of each second year thereafter. The county or tribe must allow 
32.9 	a period of not less than 30 days prior to the submission of the agreement to solicit 
32.10 	comments from the public on the contents of the agreement.
32.11 	(e) The commissioner must, within 60 days of receiving each county or tribal service 
32.12 	agreement, inform the county or tribe if the service agreement is approved. If the service 
32.13 	agreement is not approved, the commissioner must inform the county or tribe of any 
32.14 	revisions needed prior to approval.
32.15 	(f) The service agreement in this subdivision supersedes the plan requirements 
32.16 	of section 116L.88. 

32.17 	Sec. 22. Minnesota Statutes 2006, section 256J.626, subdivision 5, is amended to read:
32.18 		Subd. 5.Innovation projects. Beginning January 1, 2005, no more than $3,000,000 
32.19 	of the funds annually appropriated to the commissioner for use in the consolidated fund 
32.20 	shall be available to the commissioner for projects testing innovative approaches to 
32.21 	improving outcomes for MFIP participants, family stabilization services  participants, 
32.22 	and persons at risk of receiving MFIP as detailed in subdivision 3, and for providing 
32.23 	incentives to counties and tribes that exceed performance. Projects shall be targeted to 
32.24 	geographic areas with poor outcomes as specified in section 256J.751, subdivision 5, or to 
32.25 	subgroups within the MFIP case load who are experiencing poor outcomes. For purposes 
32.26 	of an incentive, a county or tribe exceeds performance if the county or tribe is above the 
32.27 	top of the county or tribe's annualized range of expected performance on the three-year 
32.28 	self-support index under section 256J.751, subdivision 2, clause (6), and achieves a 50 
32.29 	percent MFIP participation rate under section 256J.751, subdivision 2, clause (7), as 
32.30 	averaged across the four quarterly measurements for the most recent year for which the 
32.31 	measurements are available.

32.32 	Sec. 23. Minnesota Statutes 2006, section 256J.626, subdivision 6, is amended to read:
32.33 		Subd. 6.Base allocation to counties and tribes; definitions. (a) For purposes of 
32.34 	this section, the following terms have the meanings given.
33.1 	(1) "2002 historic spending base" means the commissioner's determination of 
33.2 	the sum of the reimbursement related to fiscal year 2002 of county or tribal agency 
33.3 	expenditures for the base programs listed in clause (6), items (i) through (iv), and earnings 
33.4 	related to calendar year 2002 in the base program listed in clause (6), item (v), and the 
33.5 	amount of spending in fiscal year 2002 in the base program listed in clause (6), item (vi), 
33.6 	issued to or on behalf of persons residing in the county or tribal service delivery area.
33.7 	(2) "Adjusted caseload factor" means a factor weighted:
33.8 	(i) 47 percent on the MFIP cases in each county at four points in time in the most 
33.9 	recent 12-month period for which data is available multiplied by the county's caseload 
33.10 	difficulty factor; and
33.11 	(ii) 53 percent on the count of adults on MFIP in each county and tribe at four points 
33.12 	in time in the most recent 12-month period for which data is available multiplied by the 
33.13 	county or tribe's caseload difficulty factor.
33.14 	(3) "Caseload difficulty factor" means a factor determined by the commissioner for 
33.15 	each county and tribe based upon the self-support index described in section 256J.751, 
33.16 	subdivision 2, clause (7)(6).
33.17 	(4) "Initial allocation" means the amount potentially available to each county or tribe 
33.18 	based on the formula in paragraphs (b) through (h)and (c).
33.19 	(5) "Final allocation" means the amount available to each county or tribe based on 
33.20 	the formula in paragraphs (b) through (h), after adjustment by subdivision 7 and (c).
33.21 	(6) "Base programs" means the:
33.22 	(i) MFIP employment and training services under Minnesota Statutes 2002, section 
33.23 	256J.62, subdivision 1, in effect June 30, 2002;
33.24 	(ii) bilingual employment and training services to refugees under Minnesota Statutes 
33.25 	2002, section 256J.62, subdivision 6, in effect June 30, 2002;
33.26 	(iii) work literacy language programs under Minnesota Statutes 2002, section 
33.27 	256J.62, subdivision 7, in effect June 30, 2002;
33.28 	(iv) supported work program authorized in Laws 2001, First Special Session chapter 
33.29 	9, article 17, section 2, in effect June 30, 2002;
33.30 	(v) administrative aid program under section 256J.76 in effect December 31, 2002; 
33.31 	and
33.32 	(vi) emergency assistance program under Minnesota Statutes 2002, section 256J.48, 
33.33 	in effect June 30, 2002.
33.34 	(b) The commissioner shall:
33.35 	(1) beginning July 1, 2003, determine the initial allocation of funds available under 
33.36 	this section according to clause (2);
34.1 	(2) allocate all of the funds available for the period beginning July 1, 2003, and 
34.2 	ending December 31, 2004, to each county or tribe in proportion to the county's or tribe's 
34.3 	share of the statewide 2002 historic spending base;
34.4 	(3) determine for calendar year 2005 the initial allocation of funds to be made 
34.5 	available under this section in proportion to the county or tribe's initial allocation for the 
34.6 	period of July 1, 2003, to December 31, 2004;
34.7 	(4) determine for calendar year 2006 the initial allocation of funds to be made 
34.8 	available under this section based 90 percent on the proportion of the county or tribe's 
34.9 	share of the statewide 2002 historic spending base and ten percent on the proportion of 
34.10 	the county or tribe's share of the adjusted caseload factor;
34.11 	(5) determine for calendar year 2007 the initial allocation of funds to be made 
34.12 	available under this section based 70 percent on the proportion of the county or tribe's 
34.13 	share of the statewide 2002 historic spending base and 30 percent on the proportion of the 
34.14 	county or tribe's share of the adjusted caseload factor; and
34.15 	(6) determine for calendar year 2008 and subsequent years the initial allocation of 
34.16 	funds to be made available under this section based 50 percent on the proportion of the 
34.17 	county or tribe's share of the statewide 2002 historic spending base and 50 percent on the 
34.18 	proportion of the county or tribe's share of the adjusted caseload factor.
34.19 	(c) With the commencement of a new or expanded tribal TANF program or an 
34.20 	agreement under section 256.01, subdivision 2, paragraph (g), in which some or all of 
34.21 	the responsibilities of particular counties under this section are transferred to a tribe, 
34.22 	the commissioner shall:
34.23 	(1) in the case where all responsibilities under this section are transferred to a tribal 
34.24 	program, determine the percentage of the county's current caseload that is transferring to a 
34.25 	tribal program and adjust the affected county's allocation accordingly; and
34.26 	(2) in the case where a portion of the responsibilities under this section are 
34.27 	transferred to a tribal program, the commissioner shall consult with the affected county or 
34.28 	counties to determine an appropriate adjustment to the allocation.
34.29 	(d) Effective January 1, 2005, counties and tribes will have their final allocations 
34.30 	adjusted based on the performance provisions of subdivision 7.

34.31 	Sec. 24. Minnesota Statutes 2006, section 259.67, subdivision 4, is amended to read:
34.32 		Subd. 4.Eligibility conditions. (a) The placing agency shall use the AFDC 
34.33 	requirements as specified in federal law as of July 16, 1996, when determining the child's 
34.34 	eligibility for adoption assistance under title IV-E of the Social Security Act. If the child 
35.1 	does not qualify, the placing agency shall certify a child as eligible for state funded 
35.2 	adoption assistance only if the following criteria are met:
35.3 	(1) Due to the child's characteristics or circumstances it would be difficult to provide 
35.4 	the child an adoptive home without adoption assistance.
35.5 	(2)(i) A placement agency has made reasonable efforts to place the child for adoption 
35.6 	without adoption assistance, but has been unsuccessful; or
35.7 	(ii) the child's licensed foster parents desire to adopt the child and it is determined by 
35.8 	the placing agency that the adoption is in the best interest of the child.
35.9 	(3) The child has been a ward of the commissioner, a Minnesota-licensed 
35.10 	child-placing agency, or a tribal social service agency of Minnesota recognized by the 
35.11 	Secretary of the Interior. The placing agency shall not certify a child who remains 
35.12 	under the jurisdiction of the sending agency pursuant to section 260.851, article 5, for 
35.13 	state-funded adoption assistance when Minnesota is the receiving state.
35.14 	(b) For purposes of this subdivision, the characteristics or circumstances that may 
35.15 	be considered in determining whether a child is a child with special needs under United 
35.16 	States Code, title 42, chapter 7, subchapter IV, part E, or meets the requirements of 
35.17 	paragraph (a), clause (1), are the following:
35.18 	(1) The child is a member of a sibling group to be placed as one unit in which at 
35.19 	least one sibling is older than 15 months of age or is described in clause (2) or (3).
35.20 	(2) The child has documented physical, mental, emotional, or behavioral disabilities.
35.21 	(3) The child has a high risk of developing physical, mental, emotional, or behavioral 
35.22 	disabilities.
35.23 	(4) The child is adopted according to tribal law without a termination of parental 
35.24 	rights or relinquishment, provided that the tribe has documented the valid reason why the 
35.25 	child cannot or should not be returned to the home of the child's parent.
35.26 	(5) The child is five years of age or older.
35.27 	(c) When a child's eligibility for adoption assistance is based upon the high risk of 
35.28 	developing physical, mental, emotional, or behavioral disabilities, payments shall not be 
35.29 	made under the adoption assistance agreement unless and until the potential disability 
35.30 	manifests itself as documented by an appropriate health care professional.

35.31 	Sec. 25. NOT ASSESSING TANF PENALTIES AGAINST COUNTIES.
 35.32 	From October 2006 through October 2007, if the state does not meet the federal 
35.33 	work participation requirements, and the state is penalized by a reduction in the TANF 
35.34 	grant, the state shall not assess penalties against the counties.

36.1 	Sec. 26.  REPEALER.
 36.2 	Minnesota Statutes 2006, sections 256J.24, subdivision 6; 256J.29; 256J.37, 
36.3 	subdivisions 3a and 3b; and 256J.626, subdivisions 7 and 9, are repealed.

36.4 	ARTICLE 3
36.5 	LICENSING

36.6 	Section 1. Minnesota Statutes 2006, section 245A.035, is amended to read:
36.7 	245A.035 RELATIVE FOSTER CARE; UNLICENSED EMERGENCY 
36.8 	LICENSE RELATIVE PLACEMENT.
36.9 		Subdivision 1.Grant of Emergency license placement. Notwithstanding section 
36.10 	245A.03, subdivision 2a, or 245C.13, subdivision 2, a county agency may place a child 
36.11 	for foster care with a relative who is not licensed to provide foster care, provided the 
36.12 	requirements of subdivision 2 this section are met. As used in this section, the term 
36.13 	"relative" has the meaning given it under section 260C.007, subdivision 27.
36.14 		Subd. 2.Cooperation with emergency licensing placement process. (a) A county 
36.15 	agency that places a child with a relative who is not licensed to provide foster care must 
36.16 	begin the process of securing an emergency license for the relative as soon as possible 
36.17 	and must conduct the initial inspection required by subdivision 3, clause (1), whenever 
36.18 	possible, prior to placing the child in the relative's home, but no later than three working 
36.19 	days after placing the child in the home. A child placed in the home of a relative who is 
36.20 	not licensed to provide foster care must be removed from that home if the relative fails 
36.21 	to cooperate with the county agency in securing an emergency foster care license. The 
36.22 	commissioner may issue an emergency foster care license to a relative with whom the 
36.23 	county agency wishes to place or has placed a child for foster care, or to a relative with 
36.24 	whom a child has been placed by court order.
36.25 	(b) If a child is to be placed in the home of a relative not licensed to provide foster 
36.26 	care, either the placing agency or the county agency in the county in which the relative 
36.27 	lives shall conduct the emergency licensing placement process as required in this section.
36.28 		Subd. 3.Requirements for emergency license placement. Before an emergency 
36.29 	license placement may be issued made, the following requirements must be met:
36.30 	(1) the county agency must conduct an initial inspection of the premises where 
36.31 	the foster care placement is to be provided made to ensure the health and safety of any 
36.32 	child placed in the home. The county agency shall conduct the inspection using a form 
36.33 	developed by the commissioner;
37.1 	(2) at the time of the inspection or placement, whichever is earlier, the county 
37.2 	agency must provide the relative being considered for an emergency license shall receive
37.3 	placement an application form for a child foster care license;
37.4 	(3) whenever possible, prior to placing the child in the relative's home, the relative 
37.5 	being considered for an emergency license placement shall provide the information 
37.6 	required by section 245C.05; and 
37.7 	(4) if the county determines, prior to the issuance of an emergency license
37.8 	placement, that anyone requiring a background study may be prior to licensure of the 
37.9 	home is disqualified under section 245C.14 and chapter 245C, and the disqualification 
37.10 	is one which the commissioner cannot set aside, an emergency license shall placement 
37.11 	must not be issued made. 
37.12 		Subd. 4.Applicant study. When the county agency has received the information 
37.13 	required by section 245C.05, the county agency shall begin an applicant study according to 
37.14 	the procedures in chapter 245C. The commissioner may issue an emergency license upon 
37.15 	recommendation of the county agency once the initial inspection has been successfully 
37.16 	completed and the information necessary to begin the applicant background study has been 
37.17 	provided. If the county agency does not recommend that the emergency license be granted, 
37.18 	the agency shall notify the relative in writing that the agency is recommending denial to the 
37.19 	commissioner; shall remove any child who has been placed in the home prior to licensure; 
37.20 	and shall inform the relative in writing of the procedure to request review pursuant to 
37.21 	subdivision 6. An emergency license shall be effective until a child foster care license is 
37.22 	granted or denied, but shall in no case remain in effect more than 120 days from the date 
37.23 	of placement submit the information to the commissioner according to section 245C.05. 
37.24 		Subd. 5.Child foster care license application. (a) The relatives with whom the
37.25 	emergency license holder placement has been made shall complete the child foster care 
37.26 	license application and necessary paperwork within ten days of the placement. The county 
37.27 	agency shall assist the emergency license holder applicant to complete the application. 
37.28 	The granting of a child foster care license to a relative shall be under the procedures in this 
37.29 	chapter and according to the standards set forth by foster care rule in Minnesota Rules, 
37.30 	chapter 2960. In licensing a relative, the commissioner shall consider the importance of 
37.31 	maintaining the child's relationship with relatives as an additional significant factor in 
37.32 	determining whether to a background study disqualification should be set aside a licensing 
37.33 	disqualifier under section 245C.22, or to grant a variance of licensing requirements should 
37.34 	be granted under sections 245C.21 to 245C.27 section 245C.30.
37.35 	(b) When the county or private child-placing agency is processing an application 
37.36 	for child foster care licensure of a relative as defined in section 260B.007, subdivision 
38.1 	12, or 260C.007, subdivision 27, the county agency or child-placing agency must explain 
38.2 	the licensing process to the prospective licensee, including the background study process 
38.3 	and the procedure for reconsideration of an initial disqualification for licensure. The 
38.4 	county or private child-placing agency must also provide the prospective relative licensee 
38.5 	with information regarding appropriate options for legal representation in the pertinent 
38.6 	geographic area. If a relative is initially disqualified under section 245C.14, the county 
38.7 	or child-placing agency commissioner must provide written notice of the reasons for the 
38.8 	disqualification and the right to request a reconsideration by the commissioner as required 
38.9 	under section 245C.17.
38.10 	(c) The commissioner shall maintain licensing data so that activities related to 
38.11 	applications and licensing actions for relative foster care providers may be distinguished 
38.12 	from other child foster care settings.
38.13 		Subd. 6.Denial of emergency license. If the commissioner denies an application 
38.14 	for an emergency foster care license under this section, that denial must be in writing and 
38.15 	must include reasons for the denial. Denial of an emergency license is not subject to 
38.16 	appeal under chapter 14. The relative may request a review of the denial by submitting 
38.17 	to the commissioner a written statement of the reasons an emergency license should be 
38.18 	granted. The commissioner shall evaluate the request for review and determine whether 
38.19 	to grant the emergency license. The commissioner's review shall be based on a review 
38.20 	of the records submitted by the county agency and the relative. Within 15 working 
38.21 	days of the receipt of the request for review, the commissioner shall notify the relative 
38.22 	requesting review in written form whether the emergency license will be granted. The 
38.23 	commissioner's review shall be based on a review of the records submitted by the county 
38.24 	agency and the relative. A child shall not be placed or remain placed in the relative's home 
38.25 	while the request for review is pending. Denial of an emergency license shall not preclude 
38.26 	an individual from reapplying for an emergency license or from applying for a child foster 
38.27 	care license. The decision of the commissioner is the final administrative agency action.

38.28 	Sec. 2. Minnesota Statutes 2006, section 245A.16, subdivision 1, is amended to read:
38.29 		Subdivision 1.Delegation of authority to agencies. (a) County agencies and 
38.30 	private agencies that have been designated or licensed by the commissioner to perform 
38.31 	licensing functions and activities under section 245A.04and; background studies for adult 
38.32 	foster care, family adult day services, and until December 31, 2007, family child care 
38.33 	under chapter 245C,; to recommend denial of applicants under section 245A.05,; to issue 
38.34 	correction orders, to issue variances, and recommend a conditional license under section 
38.35 	245A.06,; or to recommend suspending or revoking a license or issuing a fine under 
39.1 	section 245A.07, shall comply with rules and directives of the commissioner governing 
39.2 	those functions and with this section. The following variances are excluded from the 
39.3 	delegation of variance authority and may be issued only by the commissioner:
39.4 	(1) dual licensure of family child care and child foster care, dual licensure of child 
39.5 	and adult foster care, and adult foster care and family child care;
39.6 	(2) adult foster care maximum capacity;
39.7 	(3) adult foster care minimum age requirement;
39.8 	(4) child foster care maximum age requirement;
39.9 	(5) variances regarding disqualified individuals except that county agencies may 
39.10 	issue variances under section 245C.30 regarding disqualified individuals when the county 
39.11 	is responsible for conducting a consolidated reconsideration according to sections 245C.25
39.12 	and 245C.27, subdivision 2, clauses (a) and (b), of a county maltreatment determination 
39.13 	and a disqualification based on serious or recurring maltreatment; and
39.14 	(6) the required presence of a caregiver in the adult foster care residence during 
39.15 	normal sleeping hours.
39.16 	(b) County agencies must report:
39.17 	(1) information about disqualification reconsiderations under sections 245C.25 and 
39.18 	245C.27, subdivision 2, clauses paragraphs (a) and (b), and variances granted under 
39.19 	paragraph (a), clause (5), to the commissioner at least monthly in a format prescribed by 
39.20 	the commissioner; and.
39.21 	(2) for relative child foster care applicants and license holders, the number of 
39.22 	relatives, as defined in section 260C.007, subdivision 27, and household members of 
39.23 	relatives who are disqualified under section 245C.14; the disqualifying characteristics 
39.24 	under section 245C.15; the number of these individuals who requested reconsideration 
39.25 	under section 245C.21; the number of set-asides under section 245C.22; and variances 
39.26 	under section 245C.30 issued. This information shall be reported to the commissioner 
39.27 	annually by January 15 of each year in a format prescribed by the commissioner.
39.28 	(c) For family day care programs, the commissioner may authorize licensing reviews 
39.29 	every two years after a licensee has had at least one annual review.
39.30 	(d) For family adult day services programs, the commissioner may authorize 
39.31 	licensing reviews every two years after a licensee has had at least one annual review.
39.32 	(e) A license issued under this section may be issued for up to two years.

39.33 	Sec. 3. Minnesota Statutes 2006, section 245A.16, subdivision 3, is amended to read:
39.34 		Subd. 3.Recommendations to the commissioner. The county or private agency 
39.35 	shall not make recommendations to the commissioner regarding licensure without 
40.1 	first conducting an inspection, and for adult foster care, family adult day services, and 
40.2 	until December 31, 2007, family child care, a background study of the applicant, and 
40.3 	evaluation pursuant to under chapter 245C. The county or private agency must forward its 
40.4 	recommendation to the commissioner regarding the appropriate licensing action within 20 
40.5 	working days of receipt of a completed application.

40.6 	Sec. 4. Minnesota Statutes 2006, section 245C.02, is amended by adding a subdivision 
40.7 	to read:
40.8 		Subd. 14a.Private agency. "Private agency" has the meaning given in section 
40.9 	245A.02, subdivision 12.

40.10 	Sec. 5. Minnesota Statutes 2006, section 245C.04, subdivision 1, is amended to read:
40.11 		Subdivision 1.Licensed programs. (a) The commissioner shall conduct a 
40.12 	background study of an individual required to be studied under section 245C.03, 
40.13 	subdivision 1, at least upon application for initial license for all license types. 
40.14 	(b) The commissioner shall conduct a background study of an individual required 
40.15 	to be studied under section 245C.03, subdivision 1, at reapplication for a license for 
40.16 	family child care,child foster care, and adult foster care, family adult day services, and 
40.17 	until January 1, 2008, family child care. 
40.18 	(c) The commissioner is not required to conduct a study of an individual at the time 
40.19 	of reapplication for a license if the individual's background study was completed by the 
40.20 	commissioner of human services for an adult foster care license holder that is also:
40.21 	(1) registered under chapter 144D; or
40.22 	(2) licensed to provide home and community-based services to people with 
40.23 	disabilities at the foster care location and the license holder does not reside in the foster 
40.24 	care residence; and
40.25 	(3) the following conditions are met:
40.26 	(i) a study of the individual was conducted either at the time of initial licensure or 
40.27 	when the individual became affiliated with the license holder;
40.28 	(ii) the individual has been continuously affiliated with the license holder since 
40.29 	the last study was conducted; and
40.30 	(iii) the last study of the individual was conducted on or after October 1, 1995.
40.31 	(d) From July 1, 2007, to June 30, 2009, the commissioner of human services 
40.32 	shall conduct a study of an individual required to be studied under section 245C.03, at 
40.33 	the time of reapplication for a child foster care license. The county or private agency 
40.34 	shall collect and forward to the commissioner the information required under section 
41.1 	245C.05, subdivisions 1, paragraphs (a) and (b), and 5, paragraphs (a) and (b). The 
41.2 	background study conducted by the commissioner of human services under this paragraph 
41.3 	must include a review of the information required under section 245C.08, subdivisions 
41.4 	1, paragraph (a), clauses (1) to (4), and 3.
41.5 	(e) From January 1, 2008, to December 31, 2009, the commissioner shall conduct 
41.6 	a study of an individual required to be studied under section 245C.03, at the time of 
41.7 	reapplication for a family child care license. The county shall collect and forward to the 
41.8 	commissioner the information required under section 245C.05, subdivisions 1, paragraphs 
41.9 	(a) and (b), and 5, paragraphs (a) and (b). The background study conducted by the 
41.10 	commissioner under this paragraph must include a review of the information required 
41.11 	under section 245C.08, subdivisions 1, paragraph (a), clauses (1) to (4), and 3.
41.12 	(f) The commissioner of human services shall conduct a background study of an 
41.13 	individual specified under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), 
41.14 	who is newly affiliated with a child foster care license holder, and beginning January 1, 
41.15 	2008, a family child care license. The county or private agency shall collect and forward 
41.16 	to the commissioner the information required under section 245C.05, subdivisions 1 and 
41.17 	5. The background study conducted by the commissioner of human services under this 
41.18 	paragraph must include a review of the information required under section 245C.08, 
41.19 	subdivisions 1, paragraph (a), clauses (1) to (4), and 3.
41.20 	(g) Applicants for licensure, license holders, and other entities as provided in this 
41.21 	chapter must submit completed background study forms to the commissioner before 
41.22 	individuals specified in section 245C.03, subdivision 1, begin positions allowing direct 
41.23 	contact in any licensed program. 
41.24 	(e) (h) For purposes of this section, a physician licensed under chapter 147 is 
41.25 	considered to be continuously affiliated upon the license holder's receipt from the 
41.26 	commissioner of health or human services of the physician's background study results.

41.27 	Sec. 6. Minnesota Statutes 2006, section 245C.05, subdivision 1, is amended to read:
41.28 		Subdivision 1.Individual studied. (a) The individual who is the subject of the 
41.29 	background study must provide the applicant, license holder, or other entity under section 
41.30 	245C.04 with sufficient information to ensure an accurate study, including: 
41.31 	(1) the individual's first, middle, and last name and all other names by which the 
41.32 	individual has been known;
41.33 	(2) home address, city, and state of residence;
41.34 	(3) zip code;
41.35 	(4) sex;
42.1 	(5) date of birth; and
42.2 	(6) Minnesota driver's license number or state identification number.
42.3 	(b) Every subject of a background study conducted or initiated by counties or private 
42.4 	agencies under this chapter must also provide the home address, city, county, and state of 
42.5 	residence for the past five years.
42.6 	(c) Every subject of a background study related to child foster care licensed through 
42.7 	a private agency shall also provide the commissioner a signed consent for the release of 
42.8 	any information received from national crime information databases to the private agency 
42.9 	that initiated the background study.
42.10 	(d) The subject of a background study shall provide fingerprints as required in 
42.11 	subdivision 5, paragraph (c).

42.12 	Sec. 7. Minnesota Statutes 2006, section 245C.05, is amended by adding a subdivision 
42.13 	to read:
42.14 		Subd. 2a.County or private agency. For background studies related to child 
42.15 	foster care, and beginning January 1, 2008, for studies related to family child care, county 
42.16 	and private agencies must collect the information under subdivision 1 and forward it to 
42.17 	the commissioner.

42.18 	Sec. 8. Minnesota Statutes 2006, section 245C.05, subdivision 4, is amended to read:
42.19 		Subd. 4.Electronic transmission. For background studies conducted by the 
42.20 	Department of Human Services, the commissioner shall implement a system for the 
42.21 	electronic transmission of:
42.22 	(1) background study information to the commissioner; and
42.23 	(2) background study results to the license holder.; and
42.24 	(3) background study results to county and private agencies for background studies 
42.25 	conducted by the commissioner for child foster care, and beginning January 1, 2008, 
42.26 	also for family child care.

42.27 	Sec. 9. Minnesota Statutes 2006, section 245C.05, subdivision 5, is amended to read:
42.28 		Subd. 5.Fingerprints. (a) Except as provided in paragraph (c), for any background 
42.29 	study completed under this chapter, when the commissioner has reasonable cause to 
42.30 	believe that further pertinent information may exist on the subject of the background 
42.31 	study, the subject shall provide the commissioner with a set of classifiable fingerprints 
42.32 	obtained from an authorized law enforcement agency.
43.1 	(b) For purposes of requiring fingerprints, the commissioner has reasonable cause 
43.2 	when, but not limited to, the:
43.3 	(1) information from the Bureau of Criminal Apprehension indicates that the subject 
43.4 	is a multistate offender;
43.5 	(2) information from the Bureau of Criminal Apprehension indicates that multistate 
43.6 	offender status is undetermined; or
43.7 	(3) commissioner has received a report from the subject or a third party indicating 
43.8 	that the subject has a criminal history in a jurisdiction other than Minnesota.
43.9 	(c) Except as specified under section 245C.04, subdivision 1, paragraph (d), for 
43.10 	background studies conducted by the commissioner for child foster care, the subject of the 
43.11 	background study shall provide the commissioner with a set of classifiable fingerprints 
43.12 	obtained from an authorized agency.

43.13 	Sec. 10. Minnesota Statutes 2006, section 245C.05, subdivision 7, is amended to read:
43.14 		Subd. 7.Probation officer and corrections agent. (a) A probation officer or 
43.15 	corrections agent shall notify the commissioner of an individual's conviction if the 
43.16 	individual is:
43.17 	(1) affiliated with a program or facility regulated by the Department of Human 
43.18 	Services or Department of Health, a facility serving children or youth licensed by the 
43.19 	Department of Corrections, or any type of home care agency or provider of personal care 
43.20 	assistance services; and
43.21 	(2) convicted of a crime constituting a disqualification under section 245C.14. 
43.22 	(b) For the purpose of this subdivision, "conviction" has the meaning given it 
43.23 	in section 609.02, subdivision 5. 
43.24 	(c) The commissioner, in consultation with the commissioner of corrections, shall 
43.25 	develop forms and information necessary to implement this subdivision and shall provide 
43.26 	the forms and information to the commissioner of corrections for distribution to local 
43.27 	probation officers and corrections agents.
43.28 	(d) The commissioner shall inform individuals subject to a background study that 
43.29 	criminal convictions for disqualifying crimes will be reported to the commissioner by the 
43.30 	corrections system.
43.31 	(e) A probation officer, corrections agent, or corrections agency is not civilly or 
43.32 	criminally liable for disclosing or failing to disclose the information required by this 
43.33 	subdivision.
43.34 	(f) Upon receipt of disqualifying information, the commissioner shall provide the 
43.35 	notice required under section 245C.17, as appropriate, to agencies on record as having 
44.1 	initiated a background study or making a request for documentation of the background 
44.2 	study status of the individual. 
44.3 	(g) This subdivision does not apply to family child care and child foster care
44.4 	programs until January 1, 2008.

44.5 	Sec. 11. Minnesota Statutes 2006, section 245C.08, subdivision 1, is amended to read:
44.6 		Subdivision 1.Background studies conducted by commissioner of human 
44.7 	services. (a) For a background study conducted by the commissioner, the commissioner 
44.8 	shall review:
44.9 	(1) information related to names of substantiated perpetrators of maltreatment of 
44.10 	vulnerable adults that has been received by the commissioner as required under section 
44.11 	626.557, subdivision 9c, paragraph (i);
44.12 	(2) the commissioner's records relating to the maltreatment of minors in licensed 
44.13 	programs, and from county agency findings of maltreatment of minors as indicated 
44.14 	through the social service information system;
44.15 	(3) information from juvenile courts as required in subdivision 4 for individuals 
44.16 	listed in section 245C.03, subdivision 1, clauses (2), (5), and (6); and
44.17 	(4) information from the Bureau of Criminal Apprehension.; and
44.18 	(5) for a background study related to a child foster care application for licensure, the 
44.19 	commissioner shall also review:
44.20 	(i) information from the child abuse and neglect registry for any state in which the 
44.21 	background study subject has resided in for the past five years; and
44.22 	(ii) information from national crime information databases.
44.23 	(b) Notwithstanding expungement by a court, the commissioner may consider 
44.24 	information obtained under paragraph (a), clauses (3) and (4), unless the commissioner 
44.25 	received notice of the petition for expungement and the court order for expungement is 
44.26 	directed specifically to the commissioner.

44.27 	Sec. 12. Minnesota Statutes 2006, section 245C.08, subdivision 2, is amended to read:
44.28 		Subd. 2.Background studies conducted by a county or private agency. (a) For 
44.29 	a background study conducted by a county or private agency for child foster care, adult 
44.30 	foster care, and family child care homesfamily adult day services, and until January 1, 
44.31 	2008, family child care services, the commissioner shall review:
44.32 	(1) information from the county agency's record of substantiated maltreatment 
44.33 	of adults and the maltreatment of minors;
45.1 	(2) information from juvenile courts as required in subdivision 4 for individuals 
45.2 	listed in section 245C.03, subdivision 1, clauses (2), (5), and (6);
45.3 	(3) information from the Bureau of Criminal Apprehension; and
45.4 	(4) arrest and investigative records maintained by the Bureau of Criminal 
45.5 	Apprehension, county attorneys, county sheriffs, courts, county agencies, local police, the 
45.6 	National Criminal Records Repository, and criminal records from other states.
45.7 	(b) If the individual has resided in the county for less than five years, the study shall 
45.8 	include the records specified under paragraph (a) for the previous county or counties of 
45.9 	residence for the past five years.
45.10 	(c) Notwithstanding expungement by a court, the county or private agency may 
45.11 	consider information obtained under paragraph (a), clauses (3) and (4), unless the 
45.12 	commissioner received notice of the petition for expungement and the court order for 
45.13 	expungement is directed specifically to the commissioner.

45.14 	Sec. 13. Minnesota Statutes 2006, section 245C.10, is amended by adding a 
45.15 	subdivision to read:
45.16 		Subd. 4.Temporary personnel agencies, educational programs, and professional 
45.17 	services agencies. The commissioner shall recover the cost of the background studies 
45.18 	initiated by temporary personnel agencies, educational programs, and professional 
45.19 	services agencies that initiate background studies under section 245C.03, subdivision 4, 
45.20 	through a fee of no more than $20 per study charged to the agency. The fees collected 
45.21 	under this subdivision are appropriated to the commissioner for the purpose of conducting 
45.22 	background studies.

45.23 	Sec. 14. Minnesota Statutes 2006, section 245C.11, subdivision 1, is amended to read:
45.24 		Subdivision 1.Adult foster care; criminal conviction data. For individuals who 
45.25 	are required to have background studies under section 245C.03, subdivisions 1 and 2, and 
45.26 	who have been continuously affiliated with a an adult foster care provider that is licensed 
45.27 	in more than one county, criminal conviction data may be shared among those counties in 
45.28 	which the adult foster care programs are licensed. A county agency's receipt of criminal 
45.29 	conviction data from another county agency shall meet the criminal data background 
45.30 	study requirements of this chapter. 

45.31 	Sec. 15. Minnesota Statutes 2006, section 245C.11, subdivision 2, is amended to read:
45.32 		Subd. 2.Jointly licensed programs. A county agency may accept a background 
45.33 	study completed by the commissioner under this chapter in place of the background study 
46.1 	required under section 245A.16, subdivision 3, in programs with joint licensure as home 
46.2 	and community-based services and adult foster care for people with developmental 
46.3 	disabilities when the license holder does not reside in the adult foster care residence and 
46.4 	the subject of the study has been continuously affiliated with the license holder since the 
46.5 	date of the commissioner's study. 

46.6 	Sec. 16. Minnesota Statutes 2006, section 245C.12, is amended to read:
46.7 	245C.12 BACKGROUND STUDY; TRIBAL ORGANIZATIONS.
46.8 	(a) For the purposes of background studies completed by tribal organizations 
46.9 	performing licensing activities otherwise required of the commissioner under this chapter, 
46.10 	after obtaining consent from the background study subject, tribal licensing agencies shall 
46.11 	have access to criminal history data in the same manner as county licensing agencies and 
46.12 	private licensing agencies under this chapter.
46.13 	(b) Tribal organizations may contract with the commissioner to obtain background 
46.14 	study data on individuals under tribal jurisdiction related to adoptions according to 
46.15 	section 245C.34. Tribal organizations may also contract with the commissioner to obtain 
46.16 	background study data on individuals under tribal jurisdiction related to child foster care 
46.17 	according to section 245C.34.

46.18 	Sec. 17. Minnesota Statutes 2006, section 245C.16, subdivision 1, is amended to read:
46.19 		Subdivision 1.Determining immediate risk of harm. (a) If the commissioner 
46.20 	determines that the individual studied has a disqualifying characteristic, the commissioner 
46.21 	shall review the information immediately available and make a determination as to the 
46.22 	subject's immediate risk of harm to persons served by the program where the individual 
46.23 	studied will have direct contact.
46.24 	(b) The commissioner shall consider all relevant information available, including the 
46.25 	following factors in determining the immediate risk of harm:
46.26 	(1) the recency of the disqualifying characteristic;
46.27 	(2) the recency of discharge from probation for the crimes;
46.28 	(3) the number of disqualifying characteristics;
46.29 	(4) the intrusiveness or violence of the disqualifying characteristic;
46.30 	(5) the vulnerability of the victim involved in the disqualifying characteristic;
46.31 	(6) the similarity of the victim to the persons served by the program where the 
46.32 	individual studied will have direct contact; and
46.33 	(7) whether the individual has a disqualification from a previous background study 
46.34 	that has not been set aside.
47.1 	(c) This section does not apply when the subject of a background study is regulated 
47.2 	by a health-related licensing board as defined in chapter 214, and the subject is determined 
47.3 	to be responsible for substantiated maltreatment under section 626.556 or 626.557. 
47.4 	(d) This section does not apply to a background study related to an initial application 
47.5 	for a child foster care license.
47.6 	(e) If the commissioner has reason to believe, based on arrest information or an 
47.7 	active maltreatment investigation, that an individual poses an imminent risk of harm to 
47.8 	persons receiving services, the commissioner may order that the person be continuously 
47.9 	supervised or immediately removed pending the conclusion of the maltreatment 
47.10 	investigation or criminal proceedings.

47.11 	Sec. 18. Minnesota Statutes 2006, section 245C.17, is amended by adding a 
47.12 	subdivision to read:
47.13 		Subd. 5.Notice to county or private agency. For studies on individuals related 
47.14 	to a license to provide child foster care, and beginning January 1, 2008, for family child 
47.15 	care, the commissioner shall also provide a notice of the background study results to the 
47.16 	county or private agency that initiated the background study.

47.17 	Sec. 19. Minnesota Statutes 2006, section 245C.21, is amended by adding a 
47.18 	subdivision to read:
47.19 		Subd. 1a.Submission of reconsideration request to county or private agency.
 47.20 	(a) For disqualifications related to studies conducted by county agencies, and for 
47.21 	disqualifications related to studies conducted by the commissioner for child foster care, 
47.22 	and beginning January 1, 2008, for family child care, the individual shall submit the 
47.23 	request for reconsideration to the county or private agency that conducted or initiated the 
47.24 	background study.
47.25 	(b) A reconsideration request shall be submitted within the time frames specified in 
47.26 	subdivision 2.
47.27 	(c) The county or private agency shall forward the individual's request for 
47.28 	reconsideration and provide the commissioner with a recommendation whether to set aside 
47.29 	the individual's disqualification.

47.30 	Sec. 20. Minnesota Statutes 2006, section 245C.23, subdivision 2, is amended to read:
47.31 		Subd. 2.Commissioner's notice of disqualification that is not set aside. (a) The 
47.32 	commissioner shall notify the license holder of the disqualification and order the license 
48.1 	holder to immediately remove the individual from any position allowing direct contact 
48.2 	with persons receiving services from the license holder if:
48.3 	(1) the individual studied does not submit a timely request for reconsideration 
48.4 	under section 245C.21;
48.5 	(2) the individual submits a timely request for reconsideration, but the commissioner 
48.6 	does not set aside the disqualification for that license holder under section 245C.22;
48.7 	(3) an individual who has a right to request a hearing under sections 245C.27 and 
48.8 	256.045, or 245C.28 and chapter 14 for a disqualification that has not been set aside, does 
48.9 	not request a hearing within the specified time; or
48.10 	(4) an individual submitted a timely request for a hearing under sections 245C.27
48.11 	and 256.045, or 245C.28 and chapter 14, but the commissioner does not set aside the 
48.12 	disqualification under section 245A.08, subdivision 5, or 256.045.
48.13 	(b) If the commissioner does not set aside the disqualification under section 245C.22, 
48.14 	and the license holder was previously ordered under section 245C.17 to immediately 
48.15 	remove the disqualified individual from direct contact with persons receiving services or 
48.16 	to ensure that the individual is under continuous, direct supervision when providing direct 
48.17 	contact services, the order remains in effect pending the outcome of a hearing under 
48.18 	sections 245C.27 and 256.045, or 245C.28 and chapter 14.
48.19 	(c) For background studies related to child foster care, and beginning January 
48.20 	1, 2008, for family child care, the commissioner shall also notify the county or private 
48.21 	agency that initiated the study of the results of the reconsideration.

48.22 	Sec. 21. [245C.33] ADOPTION BACKGROUND STUDY REQUIREMENTS.
48.23 		Subdivision 1.Background studies conducted by commissioner. Before 
48.24 	placement of a child for purposes of adoption, the commissioner shall conduct a 
48.25 	background study on individuals listed in section 259.41, subdivision 3, for county 
48.26 	agencies and private agencies licensed to place children for adoption.
48.27 		Subd. 2.Information and data provided to county or private agency. The 
48.28 	subject of the background study shall provide the following information to the county 
48.29 	or private agency:
48.30 	(1) the information specified in section 245C.05;
48.31 	(2) a set of classifiable fingerprints obtained from an authorized agency; and
48.32 	(3) for studies initiated by a private agency, a signed consent for the release of 
48.33 	information received from national crime information databases to the private agency.
48.34 		Subd. 3.Information and data provided to commissioner. The county or private 
48.35 	agency shall forward the data collected under subdivision 2 to the commissioner.
49.1 		Subd. 4.Information commissioner reviews. (a) The commissioner shall review 
49.2 	the following information regarding the background study subject:
49.3 	(1) the information under section 245C.08, subdivisions 1, 3, and 4;
49.4 	(2) information from the child abuse and neglect registry for any state in which the 
49.5 	subject has resided for the past five years; and
49.6 	(3) information from national crime information databases.
49.7 	(b) The commissioner shall provide any information collected under this subdivision 
49.8 	to the county or private agency that initiated the background study. The commissioner 
49.9 	shall indicate if the information collected shows that the subject of the background study 
49.10 	has a conviction listed in United States Code, title 42, section 671(a)(20)(A).

49.11 	Sec. 22. [245C.34] ADOPTION AND CHILD FOSTER CARE BACKGROUND 
49.12 	STUDIES; TRIBAL ORGANIZATIONS.
49.13 		Subdivision 1.Background studies may be conducted by commissioner. (a) 
49.14 	Tribal organizations may contract with the commissioner under section 245C.12 to obtain 
49.15 	background study data on individuals under tribal jurisdiction related to adoptions.
49.16 	(b) Tribal organizations may contract with the commissioner under section 245C.12 
49.17 	to obtain background study data on individuals under tribal jurisdiction related to child 
49.18 	foster care.
49.19 	(c) Background studies initiated by tribal organizations under paragraphs (a) and (b) 
49.20 	must be conducted as provided in subdivisions 2 and 3.
49.21 		Subd. 2.Information and data provided to tribal organization. The background 
49.22 	study subject must provide the following information to the tribal organization:
49.23 	(1) for background studies related to adoptions, the information under section 
49.24 	245C.05;
49.25 	(2) for background studies related to child foster care, the information under section 
49.26 	245C.05;
49.27 	(3) a set of classifiable fingerprints obtained from an authorized agency; and
49.28 	(4) a signed consent for the release of information received from national crime 
49.29 	information databases to the tribal organization.
49.30 		Subd. 3.Information and data provided to commissioner. The tribal organization 
49.31 	shall forward the data collected under subdivision 2 to the commissioner.
49.32 		Subd. 4.Information commissioner reviews. (a) The commissioner shall review 
49.33 	the following information regarding the background study subject:
49.34 	(1) the information under section 245C.08, subdivisions 1, 3, and 4;
50.1 	(2) information from the child abuse and neglect registry for any state in which the 
50.2 	subject has resided for the past five years; and
50.3 	(3) information from national crime information databases.
50.4 	(b) The commissioner shall provide any information collected under this subdivision 
50.5 	to the tribal organization that initiated the background study. The commissioner shall 
50.6 	indicate if the information collected shows that the subject of the background study has a 
50.7 	conviction listed in United States Code, title 42, section 671(a)(20)(A).

50.8 	Sec. 23. Minnesota Statutes 2006, section 259.20, subdivision 2, is amended to read:
50.9 		Subd. 2.Other applicable law. (a) Portions of chapters 245A, 245C, 257, 260, and 
50.10 	317A may also affect the adoption of a particular child. 
50.11 	(b) Provisions of the Indian Child Welfare Act, United States Code, title 25, chapter 
50.12 	21, sections 1901-1923, may also apply in the adoption of an Indian child, and may 
50.13 	preempt specific provisions of this chapter.
50.14 	(c) Consistent with chapters 245A and 245C and Public Law 109-248, a completed 
50.15 	background study is required before the approval of any foster or adoptive placement in 
50.16 	a related or an unrelated home.

50.17 	Sec. 24. Minnesota Statutes 2006, section 259.29, subdivision 1, is amended to read:
50.18 		Subdivision 1.Best interests of the child. (a) The policy of the state of Minnesota 
50.19 	is to ensure that the best interests of the child are met by requiring individualized 
50.20 	determination of the needs of the child and of how the adoptive placement will serve the 
50.21 	needs of the child.
50.22 	(b) Among the factors the agency shall consider in determining the needs of the child 
50.23 	are those specified under section 260C.193, subdivision 3, paragraph (b). 
50.24 	(c) Except for emergency placements provided for in section 245A.03, a completed 
50.25 	background study is required under section 245C.33 before the approval of an adoptive 
50.26 	placement in a home.

50.27 	Sec. 25. Minnesota Statutes 2006, section 259.41, is amended to read:
50.28 	259.41 ADOPTION STUDY.
50.29 		Subdivision 1.Study required before placement; certain relatives excepted. (a) 
50.30 	An approved adoption study; completed background study, as required under section 
50.31 	245C.33; and written report must be completed before the child is placed in a prospective 
50.32 	adoptive home under this chapter, except as allowed by section 259.47, subdivision 6. 
50.33 	In an agency placement, the report must be filed with the court at the time the adoption 
51.1 	petition is filed. In a direct adoptive placement, the report must be filed with the court in 
51.2 	support of a motion for temporary preadoptive custody under section 259.47, subdivision 
51.3 	3, or, if the study and report are complete, in support of an emergency order under section 
51.4 	259.47, subdivision 6. The study and report shall be completed by a licensed child-placing 
51.5 	agency and must be thorough and comprehensive. The study and report shall be paid for 
51.6 	by the prospective adoptive parent, except as otherwise required under section 259.67
51.7 	or 259.73. 
51.8 	(b) A placement for adoption with an individual who is related to the child, as 
51.9 	defined by section 245A.02, subdivision 13, is not subject to this section except as required 
51.10 	by section sections 245C.33 and259.53, subdivision 2, paragraph (c). 
51.11 	(c) In the case of a licensed foster parent seeking to adopt a child who is in the foster 
51.12 	parent's care, any portions of the foster care licensing process that duplicate requirements 
51.13 	of the home study may be submitted in satisfaction of the relevant requirements of this 
51.14 	section.
51.15 		Subd. 2.Form of study. (a) The adoption study must include at least one in-home 
51.16 	visit with the prospective adoptive parent. At a minimum, the study must include
51.17 	document the following information about the prospective adoptive parent:
51.18 	(1) a background check study as required by subdivision 3 and section 245C.33, 
51.19 	and including:
51.20 	(i) an evaluation assessment of the data and information provided by section 
51.21 	245C.33, subdivision 4, to determine if the prospective adoptive parent and any other 
51.22 	person over the age of 13 living in the home has a felony conviction consistent with 
51.23 	subdivision 3 and section 471(a)(2) of the Social Security Act; and
51.24 	(ii) an assessment of the effect of a any conviction or finding of substantiated 
51.25 	maltreatment on the ability to capacity of the prospective adoptive parent to safely care 
51.26 	for and parent a child;
51.27 	(2) a medical and social history and assessment of current health;
51.28 	(3) an assessment of potential parenting skills;
51.29 	(4) an assessment of ability to provide adequate financial support for a child; and
51.30 	(5) an assessment of the level of knowledge and awareness of adoption issues 
51.31 	including, where appropriate, matters relating to interracial, cross-cultural, and special 
51.32 	needs adoptions.
51.33 	(b) The adoption study is the basis for completion of a written report. The report 
51.34 	must be in a format specified by the commissioner and must contain recommendations 
51.35 	regarding the suitability of the subject of the study to be an adoptive parent.
52.1 		Subd. 3.Background check; affidavit of history study. (a) At the time an adoption 
52.2 	study is commenced, each prospective adoptive parent must:
52.3 	(1) authorize access by the agency to any private data needed to complete the study;
52.4 	(2) provide all addresses at which the prospective adoptive parent and anyone in the 
52.5 	household over the age of 13 has resided in the previous five years; and
52.6 	(3) disclose any names used previously other than the name used at the time of 
52.7 	the study.
52.8 	(b) When the requirements of paragraph (a) have been met, the agency shall 
52.9 	immediately begin initiate a background check, study under section 245C.33 to be 
52.10 	completed by the commissioner on each person over the age of 13 living in the home, 
52.11 	consisting, at a minimum, of the following:. As required under section 245C.33 and Public 
52.12 	Law 109-248, a completed background study is required before the approval of any foster 
52.13 	or adoptive placement in a related or an unrelated home. The required background study 
52.14 	must be completed as part of the home study.
52.15 	(1) a check of criminal conviction data with the Bureau of Criminal Apprehension 
52.16 	and local law enforcement authorities;
52.17 	(2) a check for data on substantiated maltreatment of a child or vulnerable adult 
52.18 	and domestic violence data with local law enforcement and social services agencies and 
52.19 	district courts; and
52.20 	(3) for those persons under the age of 25, a check of juvenile court records.
52.21 	Notwithstanding the provisions of section 260B.171 or 260C.171, the Bureau of 
52.22 	Criminal Apprehension, local law enforcement and social services agencies, district courts, 
52.23 	and juvenile courts shall release the requested information to the agency completing 
52.24 	the adoption study.
52.25 	(c) When paragraph (b) requires checking the data or records of local law 
52.26 	enforcement and social services agencies and district and juvenile courts, the agency 
52.27 	shall check with the law enforcement and social services agencies and courts whose 
52.28 	jurisdictions cover the addresses under paragraph (a), clause (2). In the event that the 
52.29 	agency is unable to complete any of the record checks required by paragraph (b), the 
52.30 	agency shall document the fact and the agency's efforts to obtain the information.
52.31 	(d) For a study completed under this section, when the agency has reasonable 
52.32 	cause to believe that further information may exist on the prospective adoptive parent or 
52.33 	household member over the age of 13 that may relate to the health, safety, or welfare of 
52.34 	the child, the prospective adoptive parent or household member over the age of 13 shall 
52.35 	provide the agency with a set of classifiable fingerprints obtained from an authorized law 
52.36 	enforcement agency and the agency may obtain criminal history data from the National 
53.1 	Criminal Records Repository by submitting fingerprints to the Bureau of Criminal 
53.2 	Apprehension. The agency has reasonable cause when, but not limited to, the:
53.3 	(1) information from the Bureau of Criminal Apprehension indicates that the 
53.4 	prospective adoptive parent or household member over the age of 13 is a multistate 
53.5 	offender;
53.6 	(2) information from the Bureau of Criminal Apprehension indicates that multistate 
53.7 	offender status is undetermined;
53.8 	(3) the agency has received a report from the prospective adoptive parent or 
53.9 	household member over the age of 13 or a third party indicating that the prospective 
53.10 	adoptive parent or household member over the age of 13 has a criminal history in a 
53.11 	jurisdiction other than Minnesota; or
53.12 	(4) the prospective adoptive parent or household member over the age of 13 is or has 
53.13 	been a resident of a state other than Minnesota in the prior five years.
53.14 	(e) At any time prior to completion of the background check required under 
53.15 	paragraph (b), a prospective adoptive parent may submit to the agency conducting the 
53.16 	study a sworn affidavit stating whether they or any person residing in the household have 
53.17 	been convicted of a crime. The affidavit shall also state whether the adoptive parent or any 
53.18 	other person residing in the household is the subject of an open investigation of, or have 
53.19 	been the subject of a substantiated allegation of, child or vulnerable-adult maltreatment 
53.20 	within the past ten years. A complete description of the crime, open investigation, or 
53.21 	substantiated abuse, and a complete description of any sentence, treatment, or disposition 
53.22 	must be included. The affidavit must contain an acknowledgment that if, at any time 
53.23 	before the adoption is final, a court receives evidence leading to a conclusion that a 
53.24 	prospective adoptive parent knowingly gave false information in the affidavit, it shall be 
53.25 	determined that the adoption of the child by the prospective adoptive parent is not in the 
53.26 	best interests of the child.
53.27 	(f) For the purposes of subdivision 1 and section 259.47, subdivisions 3 and 6, an 
53.28 	adoption study is complete for placement, even though the background checks required by 
53.29 	paragraph (b) have not been completed, if each prospective adoptive parent has completed 
53.30 	the affidavit allowed by paragraph (e) and the other requirements of this section have been 
53.31 	met. The background checks required by paragraph (b) must be completed before an 
53.32 	adoption petition is filed. If an adoption study has been submitted to the court under section 
53.33 	259.47, subdivision 3 or 6, before the background checks required by paragraph (b) were 
53.34 	complete, an updated adoption study report which includes the results of the background 
53.35 	check must be filed with the adoption petition. In the event that an agency is unable to 
54.1 	complete any of the records checks required by paragraph (b), the agency shall submit with 
54.2 	the petition to adopt an affidavit documenting the agency's efforts to complete the checks.
54.3 	(c) A home study under paragraph (b) used to consider placement of any child 
54.4 	on whose behalf Title IV-E adoption assistance payments are to be made must not be 
54.5 	approved if a background study reveals a felony conviction at any time for:
54.6 	(1) child abuse or neglect;
54.7 	(2) spousal abuse;
54.8 	(3) a crime against children, including child pornography; or
54.9 	(4) a crime involving violence, including rape, sexual assault, or homicide, but not 
54.10 	including other physical assault or battery.
54.11 	(d) A home study under paragraph (b) used to consider placement of any child 
54.12 	on whose behalf Title IV-E adoption assistance payments are to be made must not be 
54.13 	approved if a background study reveals a felony conviction within the past five years for:
54.14 	(1) physical assault or battery; or
54.15 	(2) a drug-related offense.
54.16 		Subd. 4.Updates to adoption study; period of validity. An agency may update 
54.17 	an adoption study and report as needed, regardless of when the original study and report 
54.18 	or most recent update was completed. An update must be in a format specified by the 
54.19 	commissioner and must verify the continuing accuracy of the elements of the original 
54.20 	report and document any changes to elements of the original report. An update to a study 
54.21 	and report not originally completed under this section must ensure that the study and 
54.22 	report, as updated, meet the requirements of this section. An adoption study is valid if the 
54.23 	report has been completed or updated within the previous 12 months.

54.24 	Sec. 26. Minnesota Statutes 2006, section 259.53, subdivision 2, is amended to read:
54.25 		Subd. 2.Adoption agencies; postplacement assessment and report. (a) The 
54.26 	agency to which the petition has been referred under subdivision 1 shall conduct a 
54.27 	postplacement assessment and file a report with the court within 90 days of receipt 
54.28 	of a copy of the adoption petition. The agency shall send a copy of the report to the 
54.29 	commissioner at the time it files the report with the court. The assessment and report 
54.30 	must evaluate the environment and antecedents of the child to be adopted, the home of 
54.31 	the petitioners, whether placement with the petitioners meets the needs of the child as 
54.32 	described in section 259.57, subdivision 2. The report must include a recommendation to 
54.33 	the court as to whether the petition should or should not be granted. 
54.34 	In making evaluations and recommendations, the postplacement assessment and 
54.35 	report must, at a minimum, address the following:
55.1 	(1) the level of adaptation by the prospective adoptive parents to parenting the child;
55.2 	(2) the health and well-being of the child in the prospective adoptive parents' home;
55.3 	(3) the level of incorporation by the child into the prospective adoptive parents' 
55.4 	home, extended family, and community; and
55.5 	(4) the level of inclusion of the child's previous history into the prospective adoptive 
55.6 	home, such as cultural or ethnic practices, or contact with former foster parents or 
55.7 	biological relatives.
55.8 	(b) A postplacement adoption report is valid for 12 months following its date 
55.9 	of completion.
55.10 	(c) If the petitioner is an individual who is related to the child, as defined by section 
55.11 	245A.02, subdivision 13, the agency, as part of its postplacement assessment and report 
55.12 	under paragraph (a), shall conduct a background check meeting the requirements of 
55.13 	section 259.41, subdivision 3, paragraph (b). The prospective adoptive parent shall 
55.14 	cooperate in the completion of the background check by supplying the information and 
55.15 	authorizations described in section 259.41, subdivision 3, paragraph (a). 
55.16 	(d) (c) If the report recommends that the court not grant the petition to adopt the 
55.17 	child, the provisions of this paragraph apply. Unless the assessment and report were 
55.18 	completed by the local social services agency, the agency completing the report, at the 
55.19 	time it files the report with the court under paragraph (a), must provide a copy of the report 
55.20 	to the local social services agency in the county where the prospective adoptive parent 
55.21 	lives. The agency or local social services agency may recommend that the court dismiss 
55.22 	the petition. If the local social services agency determines that continued placement in the 
55.23 	home endangers the child's physical or emotional health, the agency shall seek a court 
55.24 	order to remove the child from the home.
55.25 	(e) (d) If, through no fault of the petitioner, the agency to whom the petition was 
55.26 	referred under subdivision 1, paragraph (b), fails to complete the assessment and file the 
55.27 	report within 90 days of the date it received a copy of the adoption petition, the court may 
55.28 	hear the petition upon giving the agency and the local social services agency, if different, 
55.29 	five days' notice by mail of the time and place of the hearing.

55.30 	Sec. 27. Minnesota Statutes 2006, section 259.57, subdivision 2, is amended to read:
55.31 		Subd. 2.Protection of child's best interests. (a) The policy of the state of 
55.32 	Minnesota is to ensure that the best interests of children are met by requiring an 
55.33 	individualized determination of the needs of the child and how the adoptive placement 
55.34 	will serve the needs of the child.
56.1 	(b) Among the factors the court shall consider in determining the needs of the child 
56.2 	are those specified under section 260C.193, subdivision 3, paragraph (b). Consistent with 
56.3 	section 245C.33 and Public Law 109-248, a completed background study is required 
56.4 	before the approval of an adoptive placement in a home.
56.5 	(c) In reviewing adoptive placement and in determining appropriate adoption, 
56.6 	the court shall consider placement, consistent with the child's best interests and in the 
56.7 	following order, with (1) a relative or relatives of the child, or (2) an important friend with 
56.8 	whom the child has resided or had significant contact. Placement of a child cannot be 
56.9 	delayed or denied based on race, color, or national origin of the adoptive parent or the 
56.10 	child. Whenever possible, siblings should be placed together unless it is determined 
56.11 	not to be in the best interests of a sibling.
56.12 	(d) If the child's birth parent or parents explicitly request that relatives and important 
56.13 	friends not be considered, the court shall honor that request consistent with the best 
56.14 	interests of the child.
56.15 	If the child's birth parent or parents express a preference for placing the child in an 
56.16 	adoptive home of the same or a similar religious background to that of the birth parent 
56.17 	or parents, the court shall place the child with a family that also meets the birth parent's 
56.18 	religious preference. Only if no family is available as described in clause (a) or (b) 
56.19 	may the court give preference to a family described in clause (c) that meets the parent's 
56.20 	religious preference.
56.21 	(e) This subdivision does not affect the Indian Child Welfare Act, United States 
56.22 	Code, title 25, sections 1901 to 1923, and the Minnesota Indian Family Preservation 
56.23 	Act, sections 260.751 to 260.835. 

56.24 	Sec. 28. Minnesota Statutes 2006, section 260C.209, is amended to read:
56.25 	260C.209 BACKGROUND CHECKS.
56.26 		Subdivision 1.Subjects. The responsible social services agency must conduct
56.27 	initiate a background check study to be completed by the commissioner under this section 
56.28 	of chapter 245C on the following individuals:
56.29 	(1) a noncustodial parent or nonadjudicated parent who is being assessed for 
56.30 	purposes of providing day-to-day care of a child temporarily or permanently under section 
56.31 	260C.212, subdivision 4, and any member of the parent's household who is over the age of 
56.32 	13 when there is a reasonable cause to believe that the parent or household member over 
56.33 	age 13 has a criminal history or a history of maltreatment of a child or vulnerable adult 
56.34 	which would endanger the child's health, safety, or welfare;
57.1 	(2) an individual whose suitability for relative placement under section 260C.212, 
57.2 	subdivision 5, is being determined and any member of the relative's household who is 
57.3 	over the age of 13 when:
57.4 	(i) the relative must be licensed for foster care; or
57.5 	(ii) the agency must conduct a background study is required under section 259.53, 
57.6 	subdivision 2; or
57.7 	(iii) the agency or the commissioner has reasonable cause to believe the relative 
57.8 	or household member over the age of 13 has a criminal history which would not make 
57.9 	transfer of permanent legal and physical custody to the relative under section 260C.201, 
57.10 	subdivision 11, in the child's best interest; and
57.11 	(3) a parent, following an out-of-home placement, when the responsible social 
57.12 	services agency has reasonable cause to believe that the parent has been convicted of a 
57.13 	crime directly related to the parent's capacity to maintain the child's health, safety, or 
57.14 	welfare or the parent is the subject of an open investigation of, or has been the subject 
57.15 	of a substantiated allegation of, child or vulnerable-adult maltreatment within the past 
57.16 	ten years.
57.17 	"Reasonable cause" means that the agency has received information or a report from the 
57.18 	subject or a third person that creates an articulable suspicion that the individual has a 
57.19 	history that may pose a risk to the health, safety, or welfare of the child. The information 
57.20 	or report must be specific to the potential subject of the background check and shall not 
57.21 	be based on the race, religion, ethnic background, age, class, or lifestyle of the potential 
57.22 	subject.
57.23 		Subd. 2.General procedures. (a) When conducting initiating a background check 
57.24 	under subdivision 1, the agency may shall require the individual being assessed to provide 
57.25 	sufficient information to ensure an accurate assessment under this section, including:
57.26 	(1) the individual's first, middle, and last name and all other names by which the 
57.27 	individual has been known;
57.28 	(2) home address, zip code, city, county, and state of residence for the past ten five
57.29 	years;
57.30 	(3) sex;
57.31 	(4) date of birth; and
57.32 	(5) driver's license number or state identification number.
57.33 	(b) When notified by the commissioner or the responsible social services agency that 
57.34 	it is conducting an assessment under this section, the Bureau of Criminal Apprehension, 
57.35 	commissioners of health and human services, law enforcement, and county agencies must 
57.36 	provide the commissioner or the responsible social services agency or county attorney 
58.1 	with the following information on the individual being assessed: criminal history data, 
58.2 	reports about the maltreatment of adults substantiated under section 626.557, and reports 
58.3 	of maltreatment of minors substantiated under section 626.556.
58.4 		Subd. 3.Multistate information. (a) For any assessment every background study
58.5 	completed under this section, if the responsible social services agency has reasonable 
58.6 	cause to believe that the individual is a multistate offender, the individual must the subject 
58.7 	of the background study shall provide the responsible social services agency or the 
58.8 	county attorney with a set of classifiable fingerprints obtained from an authorized law 
58.9 	enforcement agency. The responsible social services agency or county attorney may shall 
58.10 	provide the fingerprints to the commissioner, and the commissioner shall obtain criminal 
58.11 	history data from the National Criminal Records Repository by submitting the fingerprints 
58.12 	to the Bureau of Criminal Apprehension.
58.13 	(b) For purposes of this subdivision, the responsible social services agency has 
58.14 	reasonable cause when, but not limited to:
58.15 	(1) information from the Bureau of Criminal Apprehension indicates that the 
58.16 	individual is a multistate offender;
58.17 	(2) information from the Bureau of Criminal Apprehension indicates that multistate 
58.18 	offender status is undetermined;
58.19 	(3) the social services agency has received a report from the individual or a third 
58.20 	party indicating that the individual has a criminal history in a jurisdiction other than 
58.21 	Minnesota; or
58.22 	(4) the individual is or has been a resident of a state other than Minnesota at any 
58.23 	time during the prior ten years.
58.24 		Subd. 4.Notice upon receipt. The responsible social services agency commissioner
58.25 	must provide the subject of the background study with the results of the study as required
58.26 	under this section within 15 business days of receipt or at least 15 days prior to the hearing 
58.27 	at which the results will be presented, whichever comes first. The subject may provide 
58.28 	written information to the agency that the results are incorrect and may provide additional 
58.29 	or clarifying information to the agency and to the court through a party to the proceeding. 
58.30 	This provision does not apply to any background study conducted under chapters 245A 
58.31 	and chapter 245C.

58.32 	Sec. 29. Minnesota Statutes 2006, section 260C.212, subdivision 2, is amended to read:
58.33 		Subd. 2.Placement decisions based on best interest of the child. (a) The policy 
58.34 	of the state of Minnesota is to ensure that the child's best interests are met by requiring an 
58.35 	individualized determination of the needs of the child and of how the selected placement 
59.1 	will serve the needs of the child being placed. The authorized child-placing agency shall 
59.2 	place a child, released by court order or by voluntary release by the parent or parents, in 
59.3 	a family foster home selected by considering placement with relatives and important 
59.4 	friends in the following order:
59.5 	(1) with an individual who is related to the child by blood, marriage, or adoption; or
59.6 	(2) with an individual who is an important friend with whom the child has resided or 
59.7 	had significant contact.
59.8 	(b) Among the factors the agency shall consider in determining the needs of the 
59.9 	child are the following:
59.10 	(1) the child's current functioning and behaviors;
59.11 	(2) the medical, educational, and developmental needs of the child;
59.12 	(3) the child's history and past experience;
59.13 	(4) the child's religious and cultural needs;
59.14 	(5) the child's connection with a community, school, and church;
59.15 	(6) the child's interests and talents;
59.16 	(7) the child's relationship to current caretakers, parents, siblings, and relatives; and
59.17 	(8) the reasonable preference of the child, if the court, or the child-placing agency 
59.18 	in the case of a voluntary placement, deems the child to be of sufficient age to express 
59.19 	preferences.
59.20 	(c) Placement of a child cannot be delayed or denied based on race, color, or national 
59.21 	origin of the foster parent or the child.
59.22 	(d) Siblings should be placed together for foster care and adoption at the earliest 
59.23 	possible time unless it is determined not to be in the best interests of a sibling or unless it 
59.24 	is not possible after appropriate efforts by the responsible social services agency.
59.25 	(e) Except for emergency placements as provided for in section 245A.035, a 
59.26 	completed background study is required under section 245C.08 before the approval of a 
59.27 	foster placement in a related or an unrelated home.

59.28 	EFFECTIVE DATE. Changes made to sections in this article related to family 
59.29 	child care are effective January 1, 2008.

59.30 	ARTICLE 4
59.31 	DEPARTMENT OF HUMAN SERVICES - HEALTH CARE

59.32 	Section 1. Minnesota Statutes 2006, section 16A.724, subdivision 2, is amended to 
59.33 	read:
60.1 		Subd. 2.Transfers. (a) Notwithstanding section 295.581, to the extent available 
60.2 	resources in the health care access fund exceed expenditures in that fund, effective with
60.3 	for the biennium beginning July 1, 2007, the commissioner of finance shall transfer the 
60.4 	excess funds from the health care access fund to the general fund on June 30 of each year, 
60.5 	provided that the amount transferred in any fiscal biennium shall not exceed $96,000,000.
60.6 	The purpose of this transfer is to meet the rate increase required under Laws 2003, First 
60.7 	Special Session chapter 14, article 13C, section 2, subdivision 6.
60.8 	(b) For fiscal years 2006 to 2009 2011, MinnesotaCare shall be a forecasted 
60.9 	program, and, if necessary, the commissioner shall reduce these transfers from the health 
60.10 	care access fund to the general fund to meet annual MinnesotaCare expenditures or, if 
60.11 	necessary, transfer sufficient funds from the general fund to the health care access fund to 
60.12 	meet annual MinnesotaCare expenditures.

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

60.21 	Sec. 3. Minnesota Statutes 2006, section 256.01, subdivision 2b, is amended to read:
60.22 		Subd. 2b.Performance payments. (a) The commissioner shall develop and 
60.23 	implement a pay-for-performance system to provide performance payments to eligible
60.24 	medical groups and clinics that demonstrate optimum care in serving individuals 
60.25 	with chronic diseases who are enrolled in health care programs administered by the 
60.26 	commissioner under chapters 256B, 256D, and 256L. The commissioner may receive any 
60.27 	federal matching money that is made available through the medical assistance program 
60.28 	for managed care oversight contracted through vendors, including consumer surveys, 
60.29 	studies, and external quality reviews as required by the federal Balanced Budget Act of 
60.30 	1997, Code of Federal Regulations, title 42, part 438-managed care, subpart E-external 
60.31 	quality review. Any federal money received for managed care oversight is appropriated 
60.32 	to the commissioner for this purpose. The commissioner may expend the federal money 
60.33 	received in either year of the biennium.
61.1 	(b) The commissioner shall also develop and implement a patient incentive health 
61.2 	program to provide incentives and rewards to patients who are enrolled in health care 
61.3 	programs administered by the commissioner under chapters 256B, 256D, and 256L, and 
61.4 	who have agreed to and have met personal health goals established with the patients' 
61.5 	primary care providers to manage a chronic disease or condition, including but not limited 
61.6 	to diabetes, high blood pressure, and coronary artery disease.

61.7 	Sec. 4. [256.962] MINNESOTA HEALTH CARE PROGRAMS OUTREACH.
61.8 		Subdivision 1.Public awareness and education. The commissioner shall design 
61.9 	and implement a statewide campaign to raise public awareness on the availability 
61.10 	of health coverage through medical assistance, general assistance medical care, and 
61.11 	MinnesotaCare and to educate the public on the importance of obtaining and maintaining 
61.12 	health care coverage. The campaign shall include multimedia messages directed to the 
61.13 	general population.
61.14 		Subd. 2.Outreach grants. (a) The commissioner shall award grants to public 
61.15 	and private organizations or regional collaboratives for outreach activities, including, 
61.16 	but not limited to: 
61.17 	(1) providing information, applications, and assistance in obtaining coverage 
61.18 	through Minnesota public health care programs;
61.19 	(2) collaborating with public and private entities such as hospitals, providers, health 
61.20 	plans, legal aid offices, pharmacies, insurance agencies, and faith-based organizations to 
61.21 	develop outreach activities and partnerships to ensure the distribution of information 
61.22 	and applications and provide assistance in obtaining coverage through Minnesota health 
61.23 	care programs; and
61.24 	(3) providing or collaborating with public and private entities to provide multilingual 
61.25 	and culturally specific information and assistance to applicants in areas of high 
61.26 	uninsurance in the state or populations with high rates of uninsurance.
61.27 	(b) The commissioner shall ensure that all outreach materials are available in 
61.28 	languages other than English.
61.29 	(c) The commissioner shall establish an outreach trainer program to provide 
61.30 	training to designated individuals from the community and public and private entities on 
61.31 	application assistance in order for these individuals to provide training to others in the 
61.32 	community on an as-needed basis.
61.33 		Subd. 3. Application and assistance. (a) The Minnesota health care programs 
61.34 	application must be made available at provider offices, local human services agencies, 
61.35 	school districts, public and private elementary schools in which 25 percent or more of 
62.1 	the students receive free or reduced price lunches, community health offices, Women, 
62.2 	Infants and Children (WIC) program sites, Head Start program sites, public housing 
62.3 	councils, child care centers, early childhood education and preschool program sites, legal 
62.4 	aid offices, and libraries. The commissioner shall ensure that applications are available 
62.5 	in languages other than English.
62.6 	(b) Local human service agencies, hospitals, and health care community clinics 
62.7 	receiving state funds must provide direct assistance in completing the application 
62.8 	form, including the free use of a copy machine and a drop box for applications. These 
62.9 	locations must ensure that the drop box is checked at least weekly and any applications 
62.10 	are submitted to the commissioner. The commissioner shall provide these entities with 
62.11 	an identification number to stamp on each application to identify the entity that provided 
62.12 	assistance. Other locations where applications are required to be available shall either 
62.13 	provide direct assistance in completing the application form or provide information on 
62.14 	where an applicant can receive application assistance.
62.15 	(c) Counties must offer applications and application assistance when providing 
62.16 	child support collection services.
62.17 	(d) Local public health agencies and counties that provide immunization clinics must 
62.18 	offer applications and application assistance during these clinics.
62.19 	(e) The commissioner shall coordinate with the commissioner of health to ensure 
62.20 	that maternal and child health outreach efforts include information on Minnesota health 
62.21 	care programs and application assistance, when needed.
62.22 		Subd. 4.Statewide toll-free telephone number. The commissioner shall provide 
62.23 	funds for a statewide toll-free telephone number to provide information on public and 
62.24 	private health coverage options and sources of free and low-cost health care. The 
62.25 	statewide telephone number must provide the option of obtaining this information in 
62.26 	languages other than English.
62.27 		Subd. 5.Incentive program. The commissioner shall establish an incentive 
62.28 	program for organizations that directly identify and assist potential enrollees in filling 
62.29 	out and submitting an application. For each applicant who is successfully enrolled in 
62.30 	MinnesotaCare, medical assistance, or general assistance medical care, the commissioner 
62.31 	shall pay the organization a $25 application assistance bonus. The organization may 
62.32 	provide an applicant a gift certificate or other incentive upon enrollment.
62.33 		Subd. 6.School districts. (a) At the beginning of each school year, a school district 
62.34 	shall provide information to each student on the availability of health care coverage 
62.35 	through the Minnesota health care programs.
63.1 	(b) For each child who is determined to be eligible for a free or reduced priced lunch, 
63.2 	the district shall provide the child's family with an application for the Minnesota health 
63.3 	care programs and information on how to obtain application assistance.
63.4 	(c) A district shall also ensure that applications and information on application 
63.5 	assistance are available at early childhood education sites and public schools located 
63.6 	within the district's jurisdiction. 
63.7 	(d) Each district shall designate an enrollment specialist to provide application 
63.8 	assistance and follow-up services with families who are eligible for the reduced or free 
63.9 	lunch program or who have indicated an interest in receiving information or an application 
63.10 	for the Minnesota health care program.
63.11 	(e) Each school district shall provide on their Web site a link to information on how 
63.12 	to obtain an application and application assistance.
63.13 		Subd. 7.Renewal notice. (a) The commissioner shall mail a renewal notice to 
63.14 	enrollees notifying the enrollees that the enrollees eligibility must be renewed. A notice 
63.15 	shall be sent at least 90 days prior to the renewal date and at least 60 days prior to the 
63.16 	renewal date.
63.17 	(b) For enrollees who are receiving services through managed care plans, the 
63.18 	managed care plan must provide a follow-up renewal call at least 60 days prior to the 
63.19 	enrollees' renewal dates.
63.20 	(c) The commissioner shall include the end of coverage dates on the monthly rosters 
63.21 	of enrollees provided to managed care organizations.
63.22 		Subd. 8.MinnesotaCare small employer buy-in option. The commissioner shall 
63.23 	provide information on the small employer buy-in option for MinnesotaCare to insurance 
63.24 	agents and local chambers of commerce.

63.25 	Sec. 5. [256.963] PRIMARY CARE ACCESS INITIATIVE.
63.26 		Subdivision 1.Establishment. (a) The commissioner shall award a grant to 
63.27 	implement in Hennepin and Ramsey Counties a Web-based primary care access pilot 
63.28 	project designed as a collaboration between private and public sectors to connect, where 
63.29 	appropriate, a patient with a primary care medical home, and schedule patients into 
63.30 	available community-based appointments as an alternative to nonemergency use of the 
63.31 	hospital emergency room. The grantee must establish a program that diverts patients 
63.32 	presenting at an emergency room for nonemergency care to more appropriate outpatient 
63.33 	settings. The program must refer the patient to an appropriate health care professional 
63.34 	based on the patient's health care needs and situation. The program must provide the 
63.35 	patient with a scheduled appointment that is timely, with an appropriate provider who is 
64.1 	conveniently located. If the patient is uninsured and potentially eligible for a Minnesota 
64.2 	health care program, the program must connect the patient to a primary care provider, 
64.3 	community clinic, or agency that can assist the patient with the application process. The 
64.4 	program must also ensure that discharged patients are connected with a community-based 
64.5 	primary care provider and assist in scheduling any necessary follow-up visits before 
64.6 	the patient is discharged.
64.7 	(b) The program must not require a provider to pay a fee for accepting charity care 
64.8 	patients or patients enrolled in a Minnesota public health care program.
64.9 		Subd. 2.Evaluation. (a) The grantee must report to the commissioner on a quarterly 
64.10 	basis the following information:
64.11 	(1) the total number of appointments available for scheduling by specialty;
64.12 	(2) the average length of time between scheduling and actual appointment;  
64.13 	(3) the total number of patients referred and whether the patient was insured or 
64.14 	uninsured; and
64.15 	(4) the total number of appointments resulting in visits completed and number of 
64.16 	patients continuing services with the referring clinic.
64.17 	(b) The commissioner, in consultation with the Minnesota Hospital Association, 
64.18 	shall conduct an evaluation of the emergency room diversion pilot project and submit the 
64.19 	results to the legislature by January 15, 2009. The evaluation shall compare the number of 
64.20 	nonemergency visits and repeat visits to hospital emergency rooms for the period before 
64.21 	the commencement of the project and one year after the commencement, and an estimate 
64.22 	of the costs saved from any documented reductions.

64.23 	Sec. 6. Minnesota Statutes 2006, section 256.969, subdivision 3a, is amended to read:
64.24 		Subd. 3a.Payments. (a) Acute care hospital billings under the medical 
64.25 	assistance program must not be submitted until the recipient is discharged. However, 
64.26 	the commissioner shall establish monthly interim payments for inpatient hospitals that 
64.27 	have individual patient lengths of stay over 30 days regardless of diagnostic category. 
64.28 	Except as provided in section 256.9693, medical assistance reimbursement for treatment 
64.29 	of mental illness shall be reimbursed based on diagnostic classifications. Individual 
64.30 	hospital payments established under this section and sections 256.9685, 256.9686, and 
64.31 	256.9695, in addition to third party and recipient liability, for discharges occurring during 
64.32 	the rate year shall not exceed, in aggregate, the charges for the medical assistance covered 
64.33 	inpatient services paid for the same period of time to the hospital. This payment limitation 
64.34 	shall be calculated separately for medical assistance and general assistance medical 
64.35 	care services. The limitation on general assistance medical care shall be effective for 
65.1 	admissions occurring on or after July 1, 1991. Services that have rates established under 
65.2 	subdivision 11 or 12, must be limited separately from other services. After consulting with 
65.3 	the affected hospitals, the commissioner may consider related hospitals one entity and 
65.4 	may merge the payment rates while maintaining separate provider numbers. The operating 
65.5 	and property base rates per admission or per day shall be derived from the best Medicare 
65.6 	and claims data available when rates are established. The commissioner shall determine 
65.7 	the best Medicare and claims data, taking into consideration variables of recency of the 
65.8 	data, audit disposition, settlement status, and the ability to set rates in a timely manner. 
65.9 	The commissioner shall notify hospitals of payment rates by December 1 of the year 
65.10 	preceding the rate year. The rate setting data must reflect the admissions data used to 
65.11 	establish relative values. Base year changes from 1981 to the base year established for the 
65.12 	rate year beginning January 1, 1991, and for subsequent rate years, shall not be limited 
65.13 	to the limits ending June 30, 1987, on the maximum rate of increase under subdivision 
65.14 	1. The commissioner may adjust base year cost, relative value, and case mix index data 
65.15 	to exclude the costs of services that have been discontinued by the October 1 of the year 
65.16 	preceding the rate year or that are paid separately from inpatient services. Inpatient stays 
65.17 	that encompass portions of two or more rate years shall have payments established based 
65.18 	on payment rates in effect at the time of admission unless the date of admission preceded 
65.19 	the rate year in effect by six months or more. In this case, operating payment rates for 
65.20 	services rendered during the rate year in effect and established based on the date of 
65.21 	admission shall be adjusted to the rate year in effect by the hospital cost index.
65.22 	(b) For fee-for-service admissions occurring on or after July 1, 2002, the total 
65.23 	payment, before third-party liability and spenddown, made to hospitals for inpatient 
65.24 	services is reduced by .5 percent from the current statutory rates.
65.25 	(c) In addition to the reduction in paragraph (b), the total payment for fee-for-service 
65.26 	admissions occurring on or after July 1, 2003, made to hospitals for inpatient services 
65.27 	before third-party liability and spenddown, is reduced five percent from the current 
65.28 	statutory rates. Mental health services within diagnosis related groups 424 to 432, and
65.29 	facilities defined under subdivision 16, and, effective for admissions occurring on or after 
65.30 	July 1, 2007, a long-term hospital as designated by the Medicare program that is located in 
65.31 	a city of the first class as defined in section 410.01 are excluded from this paragraph.
65.32 	(d) In addition to the reduction in paragraphs (b) and (c), the total payment for 
65.33 	fee-for-service admissions occurring on or after July 1, 2005, made to hospitals for 
65.34 	inpatient services before third-party liability and spenddown, is reduced 6.0 percent from 
65.35 	the current statutory rates. Mental health services within diagnosis related groups 424 to 
65.36 	432 and, facilities defined under subdivision 16, and, effective for admissions occurring 
66.1 	on or after July 1, 2007, a long-term hospital as designated by the Medicare program 
66.2 	that is located in a city of the first class as defined in section 410.01 are excluded from 
66.3 	this paragraph. Notwithstanding section 256.9686, subdivision 7, for purposes of this 
66.4 	paragraph, medical assistance does not include general assistance medical care. Payments 
66.5 	made to managed care plans shall be reduced for services provided on or after January 
66.6 	1, 2006, to reflect this reduction.

66.7 	Sec. 7. Minnesota Statutes 2006, section 256.969, subdivision 9, is amended to read:
66.8 		Subd. 9.Disproportionate numbers of low-income patients served. (a) For 
66.9 	admissions occurring on or after October 1, 1992, through December 31, 1992, the 
66.10 	medical assistance disproportionate population adjustment shall comply with federal law 
66.11 	and shall be paid to a hospital, excluding regional treatment centers and facilities of the 
66.12 	federal Indian Health Service, with a medical assistance inpatient utilization rate in excess 
66.13 	of the arithmetic mean. The adjustment must be determined as follows:
66.14 	(1) for a hospital with a medical assistance inpatient utilization rate above the 
66.15 	arithmetic mean for all hospitals excluding regional treatment centers and facilities of the 
66.16 	federal Indian Health Service but less than or equal to one standard deviation above the 
66.17 	mean, the adjustment must be determined by multiplying the total of the operating and 
66.18 	property payment rates by the difference between the hospital's actual medical assistance 
66.19 	inpatient utilization rate and the arithmetic mean for all hospitals excluding regional 
66.20 	treatment centers and facilities of the federal Indian Health Service; and
66.21 	(2) for a hospital with a medical assistance inpatient utilization rate above one 
66.22 	standard deviation above the mean, the adjustment must be determined by multiplying 
66.23 	the adjustment that would be determined under clause (1) for that hospital by 1.1. If 
66.24 	federal matching funds are not available for all adjustments under this subdivision, the 
66.25 	commissioner shall reduce payments on a pro rata basis so that all adjustments qualify for 
66.26 	federal match. The commissioner may establish a separate disproportionate population 
66.27 	operating payment rate adjustment under the general assistance medical care program. 
66.28 	For purposes of this subdivision medical assistance does not include general assistance 
66.29 	medical care. The commissioner shall report annually on the number of hospitals likely to 
66.30 	receive the adjustment authorized by this paragraph. The commissioner shall specifically 
66.31 	report on the adjustments received by public hospitals and public hospital corporations 
66.32 	located in cities of the first class.
66.33 	(b) For admissions occurring on or after July 1, 1993, the medical assistance 
66.34 	disproportionate population adjustment shall comply with federal law and shall be paid to 
66.35 	a hospital, excluding regional treatment centers and facilities of the federal Indian Health 
67.1 	Service, with a medical assistance inpatient utilization rate in excess of the arithmetic 
67.2 	mean. The adjustment must be determined as follows:
67.3 	(1) for a hospital with a medical assistance inpatient utilization rate above the 
67.4 	arithmetic mean for all hospitals excluding regional treatment centers and facilities of the 
67.5 	federal Indian Health Service but less than or equal to one standard deviation above the 
67.6 	mean, the adjustment must be determined by multiplying the total of the operating and 
67.7 	property payment rates by the difference between the hospital's actual medical assistance 
67.8 	inpatient utilization rate and the arithmetic mean for all hospitals excluding regional 
67.9 	treatment centers and facilities of the federal Indian Health Service;
67.10 	(2) for a hospital with a medical assistance inpatient utilization rate above one 
67.11 	standard deviation above the mean, the adjustment must be determined by multiplying 
67.12 	the adjustment that would be determined under clause (1) for that hospital by 1.1. The 
67.13 	commissioner may establish a separate disproportionate population operating payment 
67.14 	rate adjustment under the general assistance medical care program. For purposes of this 
67.15 	subdivision, medical assistance does not include general assistance medical care. The 
67.16 	commissioner shall report annually on the number of hospitals likely to receive the 
67.17 	adjustment authorized by this paragraph. The commissioner shall specifically report on 
67.18 	the adjustments received by public hospitals and public hospital corporations located 
67.19 	in cities of the first class;
67.20 	(3) for a hospital that had medical assistance fee-for-service payment volume during 
67.21 	calendar year 1991 in excess of 13 percent of total medical assistance fee-for-service 
67.22 	payment volume, a medical assistance disproportionate population adjustment shall be 
67.23 	paid in addition to any other disproportionate payment due under this subdivision as 
67.24 	follows: $1,515,000 due on the 15th of each month after noon, beginning July 15, 1995. 
67.25 	For a hospital that had medical assistance fee-for-service payment volume during calendar 
67.26 	year 1991 in excess of eight percent of total medical assistance fee-for-service payment 
67.27 	volume and was the primary hospital affiliated with the University of Minnesota, a 
67.28 	medical assistance disproportionate population adjustment shall be paid in addition to any 
67.29 	other disproportionate payment due under this subdivision as follows: $505,000 due on 
67.30 	the 15th of each month after noon, beginning July 15, 1995; and
67.31 	(4) effective August 1, 2005, the payments in paragraph (b), clause (3), shall be 
67.32 	reduced to zero.
67.33 	(c) The commissioner shall adjust rates paid to a health maintenance organization 
67.34 	under contract with the commissioner to reflect rate increases provided in paragraph (b), 
67.35 	clauses (1) and (2), on a nondiscounted hospital-specific basis but shall not adjust those 
67.36 	rates to reflect payments provided in clause (3).
68.1 	(d) If federal matching funds are not available for all adjustments under paragraph 
68.2 	(b), the commissioner shall reduce payments under paragraph (b), clauses (1) and (2), on a 
68.3 	pro rata basis so that all adjustments under paragraph (b) qualify for federal match.
68.4 	(e) For purposes of this subdivision, medical assistance does not include general 
68.5 	assistance medical care.
68.6 	(f) For hospital services occurring on or after July 1, 2005, to June 30, 2007, :
68.7 	(1) general assistance medical care expenditures for fee-for-service inpatient 
68.8 	and outpatient hospital payments made by the department and by prepaid health 
68.9 	plans participating in general assistance medical care shall be considered Medicaid 
68.10 	disproportionate share hospital payments, except as limited below:
68.11 	(1) (i) only the portion of Minnesota's disproportionate share hospital allotment 
68.12 	under section 1923(f) of the Social Security Act that is not spent on the disproportionate 
68.13 	population adjustments in paragraph (b), clauses (1) and (2), may be used for general 
68.14 	assistance medical care expenditures;
68.15 	(2) (ii) only those general assistance medical care expenditures made to hospitals that 
68.16 	qualify for disproportionate share payments under section 1923 of the Social Security Act 
68.17 	and the Medicaid state plan may be considered disproportionate share hospital payments;
68.18 	(3) (iii) only those general assistance medical care expenditures made to an 
68.19 	individual hospital that would not cause the hospital to exceed its individual hospital limits 
68.20 	under section 1923 of the Social Security Act may be considered; and
68.21 	(4) (iv) general assistance medical care expenditures may be considered only to the 
68.22 	extent of Minnesota's aggregate allotment under section 1923 of the Social Security Act.
68.23 	All hospitals and prepaid health plans participating in general assistance medical care 
68.24 	must provide any necessary expenditure, cost, and revenue information required by the 
68.25 	commissioner as necessary for purposes of obtaining federal Medicaid matching funds for 
68.26 	general assistance medical care expenditures; and
68.27 	(2) certified public expenditures made by Hennepin County Medical Center shall 
68.28 	be considered Medicaid disproportionate share hospital payments. Hennepin County 
68.29 	and Hennepin County Medical Center shall report by June 15, 2007, on payments made 
68.30 	beginning July 1, 2005, or another date specified by the commissioner, that may qualify 
68.31 	for reimbursement under federal law. Based on these reports, the commissioner shall 
68.32 	apply for federal matching funds.
68.33 	(g) Upon federal approval of the related state plan amendment, paragraph (f) is 
68.34 	effective retroactively from July 1, 2005, or the earliest effective date approved by the 
68.35 	Centers for Medicare and Medicaid Services.

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

69.2 	Sec. 8. Minnesota Statutes 2006, section 256.969, subdivision 27, is amended to read:
69.3 		Subd. 27.Quarterly payment adjustment. (a) In addition to any other payment 
69.4 	under this section, the commissioner shall make the following payments effective July 
69.5 	1, 2007:
69.6 	(1) for a hospital located in Minnesota and not eligible for payments under 
69.7 	subdivision 20, with a medical assistance inpatient utilization rate greater than 17.8 
69.8 	percent of total patient days as of the base year in effect on July 1, 2005, a payment equal 
69.9 	to 13 percent of the total of the operating and property payment rates;
69.10 	(2) for a hospital located in Minnesota in a specified urban area outside of the 
69.11 	seven-county metropolitan area and not eligible for payments under subdivision 20, with 
69.12 	a medical assistance inpatient utilization rate less than or equal to 17.8 percent of total 
69.13 	patient days as of the base year in effect on July 1, 2005, a payment equal to ten percent 
69.14 	of the total of the operating and property payment rates. For purposes of this clause, the 
69.15 	following cities are specified urban areas: Detroit Lakes, Rochester, Willmar, Alexandria, 
69.16 	Austin, Cambridge, Brainerd, Hibbing, Mankato, Duluth, St. Cloud, Grand Rapids, 
69.17 	Wyoming, Fergus Falls, Albert Lea, Winona, Virginia, Thief River Falls, and Wadena; and
69.18 	(3) for a hospital located in Minnesota but not located in a specified urban area under 
69.19 	clause (2), with a medical assistance inpatient utilization rate less than or equal to 17.8 
69.20 	percent of total patient days as of the base year in effect on July 1, 2005, a payment equal to 
69.21 	four percent of the total of the operating and property payment rates. A hospital located in 
69.22 	Woodbury and not in existence during the base year shall be reimbursed under this clause.
69.23 	(b) The state share of payments under paragraph (a) shall be equal to federal 
69.24 	reimbursements to the commissioner to reimburse nonstate expenditures reported under 
69.25 	section 256B.199. The commissioner shall ratably reduce or increase payments under this 
69.26 	subdivision in order to ensure that these payments equal the amount of reimbursement 
69.27 	received by the commissioner under section 256B.199, except that payments shall be 
69.28 	ratably reduced by an amount equivalent to the state share of a four percent reduction in 
69.29 	MinnesotaCare and medical assistance payments for inpatient hospital services.
69.30 	(c) The payments under paragraph (a) shall be paid quarterly beginning on July 
69.31 	15, 2007, or upon federal approval of federal reimbursements under section 256B.199, 
69.32 	whichever occurs later.
69.33 	(d) The commissioner shall not adjust rates paid to a prepaid health plan under 
69.34 	contract with the commissioner to reflect payments provided in paragraph (a).
70.1 	(e) The commissioner shall maximize the use of available federal money for 
70.2 	disproportionate share hospital payments and shall maximize payments to qualifying 
70.3 	hospitals. In order to accomplish these purposes, the commissioner may, in consultation 
70.4 	with the nonstate entities identified in section 256B.199, adjust, on a pro rata basis 
70.5 	if feasible, the amounts reported by nonstate entities under section 256B.199 when 
70.6 	application for reimbursement is made to the federal government, and otherwise adjust 
70.7 	the provisions of this subdivision.
70.8 	(f) By January 15 of each year, beginning January 15, 2006, the commissioner 
70.9 	shall report to the chairs of the house and senate finance committees and divisions with 
70.10 	jurisdiction over funding for the Department of Human Services the following estimates 
70.11 	for the current and upcoming federal and state fiscal years:
70.12 	(1) the difference between the Medicare upper payment limit and actual or 
70.13 	anticipated medical assistance payments for hospital services;
70.14 	(2) the amount of federal disproportionate share hospital funding available to 
70.15 	Minnesota and the amount expected to be claimed by the state; and
70.16 	(3) the methodology used to calculate the results reported for clauses (1) and (2).
70.17 	(g) For purposes of this subdivision, medical assistance does not include general 
70.18 	assistance medical care.
70.19 	(h) This section sunsets on June 30, 2009. The commissioner shall report to 
70.20 	the legislature by December 15, 2008, with recommendations for maximizing federal 
70.21 	disproportionate share hospital payments after June 30, 2009.

70.22 	Sec. 9. Minnesota Statutes 2006, section 256.969, is amended by adding a subdivision 
70.23 	to read:
70.24 		Subd. 28.Long-term hospital payment adjustment. For admissions occurring on 
70.25 	or after July 1, 2007, the commissioner shall increase the medical assistance payments 
70.26 	to a long-term hospital with a medical assistance inpatient utilization rate of 17.95 
70.27 	percent of total patient days as of the base year in effect on July 1, 2005, by an amount 
70.28 	equal to 13 percent of the total of the operating and property payment rates. Payments 
70.29 	made to managed care plans shall not reflect this payment increase. For purposes of 
70.30 	this subdivision, medical assistance does not include general assistance medical care. 
70.31 	Payments to a hospital under this subdivision shall be reduced by the amount of any 
70.32 	payments made under subdivision 27. 

70.33 	Sec. 10. Minnesota Statutes 2006, section 256B.04, subdivision 14, is amended to read:
71.1 		Subd. 14.Competitive bidding. (a) When determined to be effective, economical, 
71.2 	and feasible, the commissioner may utilize volume purchase through competitive bidding 
71.3 	and negotiation under the provisions of chapter 16C, to provide items under the medical 
71.4 	assistance program including but not limited to the following:
71.5 	(1) eyeglasses;
71.6 	(2) oxygen. The commissioner shall provide for oxygen needed in an emergency 
71.7 	situation on a short-term basis, until the vendor can obtain the necessary supply from 
71.8 	the contract dealer;
71.9 	(3) hearing aids and supplies; and
71.10 	(4) durable medical equipment, including but not limited to:
71.11 	(i) hospital beds;
71.12 	(ii) commodes;
71.13 	(iii) glide-about chairs;
71.14 	(iv) patient lift apparatus;
71.15 	(v) wheelchairs and accessories;
71.16 	(vi) oxygen administration equipment;
71.17 	(vii) respiratory therapy equipment;
71.18 	(viii) electronic diagnostic, therapeutic and life support systems;
71.19 	(5) specialnonemergency medical transportation services level of need 
71.20 	determinations, disbursement of public transportation passes and tokens, and volunteer 
71.21 	and recipient mileage and parking reimbursements; and
71.22 	(6) drugs.
71.23 	(b) Rate changes under this chapter and chapters 256D and 256L do not affect 
71.24 	contract payments under this subdivision unless specifically identified.
71.25 	(c) The commissioner may not utilize volume purchase through competitive bidding 
71.26 	and negotiation for special transportation services under the provisions of chapter 16C.

71.27 	Sec. 11. Minnesota Statutes 2006, section 256B.04, is amended by adding a subdivision 
71.28 	to read:
71.29 		Subd. 14a.Level of need determination. Nonemergency medical transportation 
71.30 	level of need determinations must be performed by a physician, a registered nurse working 
71.31 	under direct supervision of a physician, a physician's assistant, a nurse practitioner, a 
71.32 	licensed practical nurse, or a discharge planner. Nonemergency medical transportation 
71.33 	level of need determinations must not be performed more than semiannually on any 
71.34 	individual, unless the individual's circumstances have sufficiently changed so as to 
71.35 	require a new level of need determination. Individuals residing in licensed nursing 
72.1 	facilities and individuals requiring stretcher transportation are exempt from a level of need 
72.2 	determination and are eligible for special transportation services until the individual no 
72.3 	longer resides in a licensed nursing facility or no longer requires stretcher transportation.

72.4 	Sec. 12. Minnesota Statutes 2006, section 256B.056, subdivision 10, is amended to 
72.5 	read:
72.6 		Subd. 10.Eligibility verification. (a) The commissioner shall require women who 
72.7 	are applying for the continuation of medical assistance coverage following the end of the 
72.8 	60-day postpartum period to update their income and asset information and to submit 
72.9 	any required income or asset verification.
72.10 	(b) The commissioner shall determine the eligibility of private-sector health care 
72.11 	coverage for infants less than one year of age eligible under section 256B.055, subdivision 
72.12 	10, or 256B.057, subdivision 1, paragraph (d), and shall pay for private-sector coverage 
72.13 	if this is determined to be cost-effective.
72.14 	(c) The commissioner shall modify the application for Minnesota health care 
72.15 	programs to require more detailed information related to verification of assets and income, 
72.16 	and shall verify assets and income for all applicants, and for all recipients upon renewal.
72.17 	(d) The commissioner shall require Minnesota health care program recipients to 
72.18 	report new or an increase in earned income within ten days of the change, and to verify new 
72.19 	or an increase in earned income that affects eligibility within ten days of notification by 
72.20 	the agency that the new or increased earned income affects eligibility. Recipients who fail 
72.21 	to verify new or an increase in earned income that affects eligibility shall be disenrolled.

72.22 	Sec. 13. Minnesota Statutes 2006, section 256B.0625, is amended by adding a 
72.23 	subdivision to read:
72.24 		Subd. 13i.Medicare Part D co-payments. For medical assistance recipients who 
72.25 	are enrolled in a Medicare Part D prescription drug plan or Medicare Advantage plan, 
72.26 	medical assistance covers the co-payments that the recipient is responsible for under the 
72.27 	Medicare Part D prescription drug plan or Medicare Advantage plan. 

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

72.29 	Sec. 14. Minnesota Statutes 2006, section 256B.0625, subdivision 17, is amended to 
72.30 	read:
72.31 		Subd. 17.Transportation costs. (a) Medical assistance covers transportation costs 
72.32 	incurred solely for obtaining emergency medical care or transportation costs incurred 
72.33 	by eligible persons in obtaining emergency or nonemergency medical care when paid 
73.1 	directly to an ambulance company, common carrier, or other recognized providers of 
73.2 	transportation services.
73.3 	(b) Medical assistance covers special transportation, as defined in Minnesota Rules, 
73.4 	part 9505.0315, subpart 1, item F, if the recipient has a physical or mental impairment that 
73.5 	would prohibit the recipient from safely accessing and using a bus, taxi, other commercial 
73.6 	transportation, or private automobile.
73.7 	The commissioner may use an order by the recipient's attending physician to certify that 
73.8 	the recipient requires special transportation services. Special transportation includes 
73.9 	driver-assisted service to eligible individuals. Driver-assisted service includes passenger 
73.10 	pickup at and return to the individual's residence or place of business, assistance with 
73.11 	admittance of the individual to the medical facility, and assistance in passenger securement 
73.12 	or in securing of wheelchairs or stretchers in the vehicle. Special transportation providers 
73.13 	must obtain written documentation from the health care service provider who is serving 
73.14 	the recipient being transported, identifying the time that the recipient arrived. Special 
73.15 	transportation providers may not bill for separate base rates for the continuation of a trip 
73.16 	beyond the original destination. Special transportation providers must take recipients 
73.17 	to the nearest appropriate health care provider, using the most direct quickest route 
73.18 	available as determined by a commercially available mileage software program approved 
73.19 	by the commissioner. The maximum medical assistance reimbursement rates for special 
73.20 	transportation services are:
73.21 	(1) $17 for the base rate and $1.35 $1.43 per mile for services to eligible persons 
73.22 	who need a wheelchair-accessible van;
73.23 	(2) $11.50 for the base rate and $1.30 per mile for services to eligible persons who 
73.24 	do not need a wheelchair-accessible van; and
73.25 	(3) $60 for the base rate and $2.40 per mile, and an attendant rate of $9 per trip, for 
73.26 	services to eligible persons who need a stretcher-accessible vehicle.

73.27 	Sec. 15. Minnesota Statutes 2006, section 256B.0625, subdivision 30, is amended to 
73.28 	read:
73.29 		Subd. 30.Other clinic services. (a) Medical assistance covers rural health clinic 
73.30 	services, federally qualified health center services, nonprofit community health clinic 
73.31 	services, public health clinic services, and the services of a clinic meeting the criteria 
73.32 	established in rule by the commissioner. Rural health clinic services and federally 
73.33 	qualified health center services mean services defined in United States Code, title 42, 
73.34 	section 1396d(a)(2)(B) and (C). Payment for rural health clinic and federally qualified 
73.35 	health center services shall be made according to applicable federal law and regulation.
74.1 	(b) A federally qualified health center that is beginning initial operation shall submit 
74.2 	an estimate of budgeted costs and visits for the initial reporting period in the form and 
74.3 	detail required by the commissioner. A federally qualified health center that is already in 
74.4 	operation shall submit an initial report using actual costs and visits for the initial reporting 
74.5 	period. Within 90 days of the end of its reporting period, a federally qualified health 
74.6 	center shall submit, in the form and detail required by the commissioner, a report of 
74.7 	its operations, including allowable costs actually incurred for the period and the actual 
74.8 	number of visits for services furnished during the period, and other information required 
74.9 	by the commissioner. Federally qualified health centers that file Medicare cost reports 
74.10 	shall provide the commissioner with a copy of the most recent Medicare cost report filed 
74.11 	with the Medicare program intermediary for the reporting year which support the costs 
74.12 	claimed on their cost report to the state.
74.13 	(c) In order to continue cost-based payment under the medical assistance program 
74.14 	according to paragraphs (a) and (b), a federally qualified health center or rural health clinic 
74.15 	must apply for designation as an essential community provider within six months of final 
74.16 	adoption of rules by the Department of Health according to section 62Q.19, subdivision 
74.17 	7. For those federally qualified health centers and rural health clinics that have applied 
74.18 	for essential community provider status within the six-month time prescribed, medical 
74.19 	assistance payments will continue to be made according to paragraphs (a) and (b) for the 
74.20 	first three years after application. For federally qualified health centers and rural health 
74.21 	clinics that either do not apply within the time specified above or who have had essential 
74.22 	community provider status for three years, medical assistance payments for health services 
74.23 	provided by these entities shall be according to the same rates and conditions applicable 
74.24 	to the same service provided by health care providers that are not federally qualified 
74.25 	health centers or rural health clinics.
74.26 	(d) Effective July 1, 1999, the provisions of paragraph (c) requiring a federally 
74.27 	qualified health center or a rural health clinic to make application for an essential 
74.28 	community provider designation in order to have cost-based payments made according 
74.29 	to paragraphs (a) and (b) no longer apply.
74.30 	(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b) 
74.31 	shall be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.
74.32 	(f) (d) Effective January 1, 2001, each federally qualified health center and rural 
74.33 	health clinic may elect to be paid either under the prospective payment system established 
74.34 	in United States Code, title 42, section 1396a(aa), or under an alternative payment 
74.35 	methodology consistent with the requirements of United States Code, title 42, section 
74.36 	1396a(aa), and approved by the Centers for Medicare and Medicaid Services. The 
75.1 	alternative payment methodology shall be 100 percent of cost as determined according to 
75.2 	Medicare cost principles.
75.3 	(e) Effective July 1, 2007, the alternative payment methodology in paragraph (d) is 
75.4 	adjusted to exclude the productivity standards and the Medicare limits.

75.5 	Sec. 16. Minnesota Statutes 2006, section 256B.0625, is amended by adding a 
75.6 	subdivision to read:
75.7 		Subd. 49.Community health worker. (a) Medical assistance covers the care 
75.8 	coordination and patient education services provided by a community health worker if 
75.9 	the community health worker has: 
75.10 	(1) received a certificate from the Minnesota State Colleges and Universities system 
75.11 	approved community health worker curriculum; or
75.12 	(2) at least five years of supervised experience with an enrolled physician or 
75.13 	advanced practice registered nurse.
75.14 	Community health workers eligible for payment under clause (2) must complete the 
75.15 	certification program by January 1, 2010, to continue to be eligible for payment.
75.16 	(b) Community health workers must work under the supervision of a medical 
75.17 	assistance enrolled physician or advanced practice registered nurse.

75.18 	Sec. 17. Minnesota Statutes 2006, section 256B.0625, is amended by adding a 
75.19 	subdivision to read:
75.20 		Subd. 50.Physician-directed care coordination services. The commissioner 
75.21 	shall develop and implement a physician-directed care coordination program for medical 
75.22 	assistance recipients who are not enrolled in the prepaid medical assistance program and 
75.23 	who are receiving services on a fee-for-service basis. This program provides payment 
75.24 	to primary care clinics for care coordination for people who have complex and chronic 
75.25 	medical conditions. Clinics must meet certain criteria such as the capacity to develop care 
75.26 	plans, and have a dedicated care coordinator, an adequate number of fee-for-service clients, 
75.27 	evaluation mechanisms, and quality improvement processes to qualify for reimbursement.

75.28 	Sec. 18. Minnesota Statutes 2006, section 256B.0631, subdivision 1, is amended to 
75.29 	read:
75.30 		Subdivision 1.Co-payments. (a) Except as provided in subdivision 2, the medical 
75.31 	assistance benefit plan shall include the following co-payments for all recipients, effective 
75.32 	for services provided on or after October 1, 2003, and before January 1, 2008:
76.1 	(1) $3 per nonpreventive visit. For purposes of this subdivision, a visit means an 
76.2 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
76.3 	established illness, and which is delivered in an ambulatory setting by a physician or 
76.4 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
76.5 	audiologist, optician, or optometrist;
76.6 	(2) $3 for eyeglasses;
76.7 	(3) $6 for nonemergency visits to a hospital-based emergency room; and
76.8 	(4) $3 per brand-name drug prescription and $1 per generic drug prescription, 
76.9 	subject to a $12 per month maximum for prescription drug co-payments. No co-payments 
76.10 	shall apply to antipsychotic drugs when used for the treatment of mental illness.
76.11 	(b) Except as provided in subdivision 2, the medical assistance benefit plan shall 
76.12 	include the following co-payments for all recipients, effective for services provided on 
76.13 	or after January 1, 2008, and before December 31, 2008:
76.14 	(1) $6 for nonemergency visits to a hospital-based emergency room; and
76.15 	(2) $3 per brand-name drug prescription and $1 per generic drug prescription, 
76.16 	subject to a $12 per month maximum for prescription drug co-payments. No co-payments 
76.17 	shall apply to antipsychotic drugs when used for the treatment of mental illness.
76.18 	(c) Except as provided in subdivision 2, the medical assistance benefit plan shall 
76.19 	include a $6 co-payment for nonemergency visits to a hospital-based emergency room for 
76.20 	all recipients effective for services provided on or after January 1, 2009.
76.21 	(d) Recipients of medical assistance are responsible for all co-payments in this 
76.22 	subdivision.

76.23 	Sec. 19. Minnesota Statutes 2006, section 256B.0631, subdivision 3, is amended to 
76.24 	read:
76.25 		Subd. 3.Collection. (a) The medical assistance reimbursement to the provider shall 
76.26 	be reduced by the amount of the co-payment, except that reimbursement for prescription 
76.27 	drugs shall not be reduced once a recipient has reached the $12 per month maximum for 
76.28 	prescription drug co-payments. 
76.29 	(b) The provider collects the co-payment from the recipient. Providers may not 
76.30 	deny services to recipients who are unable to pay the co-payment, except as provided in 
76.31 	subdivision 4.
76.32 	(c) Medical assistance reimbursement to providers and payments to managed care 
76.33 	plans shall not be increased as a result of the removal of the co-payments effective January 
76.34 	1, 2008. Effective January 1, 2009, reimbursement for prescription drugs shall be restored 
76.35 	to the extent that reimbursement was reduced due to the implementation of co-payments.

77.1 	Sec. 20. Minnesota Statutes 2006, section 256B.095, is amended to read:
77.2 	256B.095 QUALITY ASSURANCE SYSTEM ESTABLISHED.
77.3 	(a) Effective July 1, 1998, a quality assurance system for persons with developmental 
77.4 	disabilities, which includes an alternative quality assurance licensing system for programs, 
77.5 	is established in Dodge, Fillmore, Freeborn, Goodhue, Houston, Mower, Olmsted, Rice, 
77.6 	Steele, Wabasha, and Winona Counties for the purpose of improving the quality of 
77.7 	services provided to persons with developmental disabilities. A county, at its option, may 
77.8 	choose to have all programs for persons with developmental disabilities located within 
77.9 	the county licensed under chapter 245A using standards determined under the alternative 
77.10 	quality assurance licensing system or may continue regulation of these programs under 
77.11 	the licensing system operated by the commissioner. The project expires on June 30, 
77.12 	2009 2014.
77.13 	(b) Effective July 1, 2003, a county not listed in paragraph (a) may apply to 
77.14 	participate in the quality assurance system established under paragraph (a). The 
77.15 	commission established under section 256B.0951 may, at its option, allow additional 
77.16 	counties to participate in the system.
77.17 	(c) Effective July 1, 2003, any county or group of counties not listed in paragraph (a) 
77.18 	may establish a quality assurance system under this section. A new system established 
77.19 	under this section shall have the same rights and duties as the system established 
77.20 	under paragraph (a). A new system shall be governed by a commission under section 
77.21 	256B.0951. The commissioner shall appoint the initial commission members based 
77.22 	on recommendations from advocates, families, service providers, and counties in the 
77.23 	geographic area included in the new system. Counties that choose to participate in a 
77.24 	new system shall have the duties assigned under section 256B.0952. The new system 
77.25 	shall establish a quality assurance process under section 256B.0953. The provisions of 
77.26 	section 256B.0954 shall apply to a new system established under this paragraph. The 
77.27 	commissioner shall delegate authority to a new system established under this paragraph 
77.28 	according to section 256B.0955.
77.29 	(d) Effective July 1, 2007, the quality assurance system may be expanded to include 
77.30 	programs for persons with disabilities and older adults.

77.31 	Sec. 21. Minnesota Statutes 2006, section 256B.0951, subdivision 1, is amended to 
77.32 	read:
77.33 		Subdivision 1.Membership. The Quality Assurance Commission is established. 
77.34 	The commission consists of at least 14 but not more than 21 members as follows: at 
77.35 	least three but not more than five members representing advocacy organizations; at 
78.1 	least three but not more than five members representing consumers, families, and their 
78.2 	legal representatives; at least three but not more than five members representing service 
78.3 	providers; at least three but not more than five members representing counties; and the 
78.4 	commissioner of human services or the commissioner's designee. The first commission 
78.5 	shall establish membership guidelines for the transition and recruitment of membership for 
78.6 	the commission's ongoing existence. Members of the commission who do not receive a 
78.7 	salary or wages from an employer for time spent on commission duties may receive a per 
78.8 	diem payment when performing commission duties and functions. All members may be 
78.9 	reimbursed for expenses related to commission activities. Notwithstanding the provisions 
78.10 	of section 15.059, subdivision 5, the commission expires on June 30, 2009 2014.

78.11 	Sec. 22. [256B.096] QUALITY MANAGEMENT, ASSURANCE, AND 
78.12 	IMPROVEMENT SYSTEM FOR MINNESOTANS RECEIVING DISABILITY 
78.13 	SERVICES.
78.14 		Subdivision 1.Scope. In order to improve the quality of services provided to 
78.15 	Minnesotans with disabilities and to meet the requirements of the federally approved home 
78.16 	and community-based waivers under section 1915c of the Social Security Act, a statewide 
78.17 	quality assurance and improvement system for Minnesotans receiving disability services 
78.18 	shall be developed. The disability services included are the home and community-based 
78.19 	services waiver programs for persons with developmental disabilities under section 
78.20 	256B.092, subdivision 4, and for persons with disabilities under section 256B.49.
78.21 		Subd. 2.Stakeholder group. The commissioner shall consult with a stakeholder 
78.22 	group on the development and implementation of the state quality management, assurance, 
78.23 	and improvement system, including representatives of disability service recipients, 
78.24 	disability service providers, disability advocacy groups, county human service agencies, 
78.25 	and state agency staff from the Departments of Human Services and Health, and the 
78.26 	ombudsman for mental health and developmental disabilities on the development of 
78.27 	a statewide quality assurance and improvement system.
78.28 		Subd. 3.Annual survey of service recipients. The commissioner, in consultation 
78.29 	with the stakeholder advisory group, shall develop  an annual independent random 
78.30 	statewide survey of between five and ten percent of service recipients to determine the 
78.31 	effectiveness and quality of disability services. The survey shall be consistent with the 
78.32 	system performance expectations of the Centers for Medicare and Medicaid Services 
78.33 	quality management requirements and framework. The survey shall analyze whether 
78.34 	desired outcomes have been achieved for persons with different demographic, diagnostic, 
78.35 	health, and functional needs receiving different types of services in different settings 
79.1 	with different costs. The survey shall be field tested during 2008. The biennial report 
79.2 	established in subdivision 5 shall include recommendations on statewide and regional 
79.3 	reports of the survey results that, if published, would be useful to regions, counties, and 
79.4 	providers to plan and measure the impact of quality improvement activities.
79.5 		Subd. 4.Improvements for incident reporting, investigation, analysis, and 
79.6 	follow-up.  In consultation with the stakeholder group, the commissioner shall identify 
79.7 	the information, data sources, and technology needed to improve the system of incident 
79.8 	reporting, including:
79.9 	(1) reports made under the Maltreatment of Minors and Vulnerable Adults Acts; and 
79.10 	(2) investigation, analysis, and follow-up for disability services.
79.11 	The commissioner must ensure that the federal home and community-based waiver 
79.12 	requirements are met and that incidents that may have jeopardized safety and health or 
79.13 	violated service-related assurances, civil and human rights, and other protections designed 
79.14 	to prevent abuse, neglect, and exploitation, are reviewed, investigated, and acted upon 
79.15 	in a timely manner.
79.16 		Subd. 5.Biennial report. The commissioner shall provide a biennial report to the 
79.17 	chairs of the legislative committees with jurisdiction over health and human services 
79.18 	policy and funding beginning January 15, 2009, on the development and activities of the 
79.19 	quality management, assurance, and improvement system designed to meet the federal 
79.20 	requirements under the home and community-based services waiver programs for persons 
79.21 	with disabilities. By January 15, 2008, the commissioner shall provide a preliminary 
79.22 	report on priorities for meeting the federal requirements, progress on development and 
79.23 	field testing of the annual survey, appropriations necessary to implement an annual survey 
79.24 	of service recipients once field testing is completed, recommendations for improvements 
79.25 	in the incident reporting system, and a plan for incorporating quality assurance efforts 
79.26 	under section 256B.095 and other regional efforts into the statewide system.

79.27 	Sec. 23. Minnesota Statutes 2006, section 256B.199, is amended to read:
79.28 	256B.199 PAYMENTS REPORTED BY GOVERNMENTAL ENTITIES.
79.29 	(a) Effective July 1, 2007, the commissioner shall apply for federal matching funds 
79.30 	for the expenditures in paragraphs (b) and (c).
79.31 	(b) The commissioner shall apply for federal matching funds for certified public 
79.32 	expenditures as follows:
79.33 	(1) Hennepin County, Hennepin County Medical Center, Ramsey County, Regions 
79.34 	Hospital, the University of Minnesota, and Fairview-University Medical Center shall 
80.1 	report quarterly to the commissioner beginning June 1, 2007, payments made during the 
80.2 	second previous quarter that may qualify for reimbursement under federal law.;
80.3 	(b) (2)  based on these reports, the commissioner shall apply for federal matching 
80.4 	funds. These funds are appropriated to the commissioner for the payments under section 
80.5 	256.969, subdivision 27.; and
80.6 	(c) (3) by May 1 of each year, beginning May 1, 2007, the commissioner shall inform 
80.7 	the nonstate entities listed in paragraph (a) of the amount of federal disproportionate share 
80.8 	hospital payment money expected to be available in the current federal fiscal year.
80.9 	(c) The commissioner shall apply for federal matching funds for general assistance 
80.10 	medical care expenditures as follows:
80.11 	(1) for hospital services occurring on or after July 1, 2007, and before June 30, 2009, 
80.12 	general assistance medical care expenditures for fee-for-service inpatient and outpatient 
80.13 	hospital payments made by the department shall be used to apply for federal matching 
80.14 	funds, except as limited below:
80.15 	(i) only those general assistance medical care expenditures made to an individual 
80.16 	hospital that would not cause the hospital to exceed its individual hospital limits under 
80.17 	section 1923 of the Social Security Act may be considered; and
80.18 	(ii) general assistance medical care expenditures may be considered only to the extent 
80.19 	of Minnesota's aggregate allotment under section 1923 of the Social Security Act; and
80.20 	(2) all hospitals must provide any necessary expenditure, cost, and revenue 
80.21 	information required by the commissioner as necessary for purposes of obtaining federal 
80.22 	Medicaid matching funds for general assistance medical care expenditures.
80.23 	(d) This section sunsets on June 30, 2009. The commissioner shall report to 
80.24 	the legislature by December 15, 2008, with recommendations for maximizing federal 
80.25 	disproportionate share hospital payments after June 30, 2009.

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

80.27 	Sec. 24. Minnesota Statutes 2006, section 256B.69, subdivision 2, is amended to read:
80.28 		Subd. 2.Definitions. For the purposes of this section, the following terms have 
80.29 	the meanings given.
80.30 	(a) "Commissioner" means the commissioner of human services. For the 
80.31 	remainder of this section, the commissioner's responsibilities for methods and policies 
80.32 	for implementing the project will be proposed by the project advisory committees and 
80.33 	approved by the commissioner.
80.34 	(b) "Demonstration provider" means a health maintenance organization, community 
80.35 	integrated service network, or accountable provider network authorized and operating 
81.1 	under chapter 62D, 62N, or 62T that participates in the demonstration project according 
81.2 	to criteria, standards, methods, and other requirements established for the project and 
81.3 	approved by the commissioner. For purposes of this section, a county board, or group of 
81.4 	county boards operating under a joint powers agreement, is considered a demonstration 
81.5 	provider if the county or group of county boards meets the requirements of section 
81.6 	256B.692. Notwithstanding the above, Itasca County may continue to participate as a 
81.7 	demonstration provider until July 1, 2004. 
81.8 	(c) "Eligible individuals" means those persons eligible for medical assistance 
81.9 	benefits as defined in sections 256B.055, 256B.056, and 256B.06. Notwithstanding 
81.10 	sections 256B.055, 256B.056, and 256B.06, an individual who becomes ineligible for the 
81.11 	program because of failure to submit income reports or recertification forms in a timely 
81.12 	manner shall remain enrolled in the prepaid health plan and shall remain eligible to receive 
81.13 	medical assistance coverage through the last day of the month following the month in 
81.14 	which the enrollee became ineligible for the medical assistance program.
81.15 	(d) "Limitation of choice" means suspending freedom of choice while allowing 
81.16 	eligible individuals to choose among the demonstration providers.

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

81.20 	Sec. 25. Minnesota Statutes 2006, section 256B.75, is amended to read:
81.21 	256B.75 HOSPITAL OUTPATIENT REIMBURSEMENT.
81.22 	(a) For outpatient hospital facility fee payments for services rendered on or after 
81.23 	October 1, 1992, the commissioner of human services shall pay the lower of (1) submitted 
81.24 	charge, or (2) 32 percent above the rate in effect on June 30, 1992, except for those 
81.25 	services for which there is a federal maximum allowable payment. Effective for services 
81.26 	rendered on or after January 1, 2000, payment rates for nonsurgical outpatient hospital 
81.27 	facility fees and emergency room facility fees shall be increased by eight percent over the 
81.28 	rates in effect on December 31, 1999, except for those services for which there is a federal 
81.29 	maximum allowable payment. Services for which there is a federal maximum allowable 
81.30 	payment shall be paid at the lower of (1) submitted charge, or (2) the federal maximum 
81.31 	allowable payment. Total aggregate payment for outpatient hospital facility fee services 
81.32 	shall not exceed the Medicare upper limit. If it is determined that a provision of this 
81.33 	section conflicts with existing or future requirements of the United States government with 
81.34 	respect to federal financial participation in medical assistance, the federal requirements 
82.1 	prevail. The commissioner may, in the aggregate, prospectively reduce payment rates to 
82.2 	avoid reduced federal financial participation resulting from rates that are in excess of 
82.3 	the Medicare upper limitations.
82.4 	(b) Notwithstanding paragraph (a), payment for outpatient, emergency, and 
82.5 	ambulatory surgery hospital facility fee services for critical access hospitals designated 
82.6 	under section 144.1483, clause (10), shall be paid on a cost-based payment system that is 
82.7 	based on the cost-finding methods and allowable costs of the Medicare program. Effective 
82.8 	for services provided on or after July 1, 2007, a children's hospital that was formerly 
82.9 	a state hospital must be paid for the services in this paragraph using the methodology 
82.10 	established for critical access hospitals at a rate equal to fee-for-service rates plus 49 
82.11 	percent, as limited by allowable costs. 
82.12 	(c) Effective for services provided on or after July 1, 2003, rates that are based 
82.13 	on the Medicare outpatient prospective payment system shall be replaced by a budget 
82.14 	neutral prospective payment system that is derived using medical assistance data. The 
82.15 	commissioner shall provide a proposal to the 2003 legislature to define and implement 
82.16 	this provision.
82.17 	(d) For fee-for-service services provided on or after July 1, 2002, the total payment, 
82.18 	before third-party liability and spenddown, made to hospitals for outpatient hospital 
82.19 	facility services is reduced by .5 percent from the current statutory rate.
82.20 	(e) In addition to the reduction in paragraph (d), the total payment for fee-for-service 
82.21 	services provided on or after July 1, 2003, made to hospitals for outpatient hospital 
82.22 	facility services before third-party liability and spenddown, is reduced five percent from 
82.23 	the current statutory rates. Facilities defined under section 256.969, subdivision 16, are 
82.24 	excluded from this paragraph.

82.25 	Sec. 26. Minnesota Statutes 2006, section 256B.76, is amended to read:
82.26 	256B.76 PHYSICIAN AND DENTAL REIMBURSEMENT.
82.27 	(a) Effective for services rendered on or after October 1, 1992, the commissioner 
82.28 	shall make payments for physician services as follows:
82.29 	(1) payment for level one Centers for Medicare and Medicaid Services' common 
82.30 	procedural coding system codes titled "office and other outpatient services," "preventive 
82.31 	medicine new and established patient," "delivery, antepartum, and postpartum care," 
82.32 	"critical care," cesarean delivery and pharmacologic management provided to psychiatric 
82.33 	patients, and level three codes for enhanced services for prenatal high risk, shall be paid 
82.34 	at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 
82.35 	30, 1992. If the rate on any procedure code within these categories is different than the 
83.1 	rate that would have been paid under the methodology in section 256B.74, subdivision 2, 
83.2 	then the larger rate shall be paid; 
83.3 	(2) payments for all other services shall be paid at the lower of (i) submitted charges, 
83.4 	or (ii) 15.4 percent above the rate in effect on June 30, 1992;
83.5 	(3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th 
83.6 	percentile of 1989, less the percent in aggregate necessary to equal the above increases 
83.7 	except that payment rates for home health agency services shall be the rates in effect 
83.8 	on September 30, 1992;
83.9 	(4) effective for services rendered on or after January 1, 2000, payment rates for 
83.10 	physician and professional services shall be increased by three percent over the rates in 
83.11 	effect on December 31, 1999, except for home health agency and family planning agency 
83.12 	services; and
83.13 	(5) the increases in clause (4) shall be implemented January 1, 2000, for managed 
83.14 	care.
83.15 	(b) Effective for services rendered on or after October 1, 1992, the commissioner 
83.16 	shall make payments for dental services as follows:
83.17 	(1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25 
83.18 	percent above the rate in effect on June 30, 1992;
83.19 	(2) dental rates shall be converted from the 50th percentile of 1982 to the 50th 
83.20 	percentile of 1989, less the percent in aggregate necessary to equal the above increases;
83.21 	(3) effective for services rendered on or after January 1, 2000, payment rates for 
83.22 	dental services shall be increased by three percent over the rates in effect on December 
83.23 	31, 1999;
83.24 	(4) the commissioner shall award grants to community clinics or other nonprofit 
83.25 	community organizations, political subdivisions, professional associations, or other 
83.26 	organizations that demonstrate the ability to provide dental services effectively to public 
83.27 	program recipients. Grants may be used to fund the costs related to coordinating access for 
83.28 	recipients, developing and implementing patient care criteria, upgrading or establishing 
83.29 	new facilities, acquiring furnishings or equipment, recruiting new providers, or other 
83.30 	development costs that will improve access to dental care in a region. In awarding grants, 
83.31 	the commissioner shall give priority to applicants that plan to serve areas of the state in 
83.32 	which the number of dental providers is not currently sufficient to meet the needs of 
83.33 	recipients of public programs or uninsured individuals. The commissioner shall consider 
83.34 	the following in awarding the grants:
83.35 	(i) potential to successfully increase access to an underserved population;
83.36 	(ii) the ability to raise matching funds;
84.1 	(iii) the long-term viability of the project to improve access beyond the period 
84.2 	of initial funding;
84.3 	(iv) the efficiency in the use of the funding; and
84.4 	(v) the experience of the proposers in providing services to the target population.
84.5 	The commissioner shall monitor the grants and may terminate a grant if the grantee 
84.6 	does not increase dental access for public program recipients. The commissioner shall 
84.7 	consider grants for the following:
84.8 	(i) implementation of new programs or continued expansion of current access 
84.9 	programs that have demonstrated success in providing dental services in underserved 
84.10 	areas;
84.11 	(ii) a pilot program for utilizing hygienists outside of a traditional dental office to 
84.12 	provide dental hygiene services; and
84.13 	(iii) a program that organizes a network of volunteer dentists, establishes a system to 
84.14 	refer eligible individuals to volunteer dentists, and through that network provides donated 
84.15 	dental care services to public program recipients or uninsured individuals;
84.16 	(5) beginning October 1, 1999, the payment for tooth sealants and fluoride treatments 
84.17 	shall be the lower of (i) submitted charge, or (ii) 80 percent of median 1997 charges;
84.18 	(6) the increases listed in clauses (3) and (5) shall be implemented January 1, 2000, 
84.19 	for managed care; and
84.20 	(7) effective for services provided on or after January 1, 2002, payment for 
84.21 	diagnostic examinations and dental x-rays provided to children under age 21 shall be the 
84.22 	lower of (i) the submitted charge, or (ii) 85 percent of median 1999 charges.
84.23 	(c) Effective for dental services rendered on or after January 1, 2002, the 
84.24 	commissioner may, within the limits of available appropriation,shall increase 
84.25 	reimbursements to dentists and dental clinics deemed by the commissioner to be critical 
84.26 	access dental providers. Reimbursement to a critical access dental provider may be 
84.27 	increased by not more than 50 percent above the reimbursement rate that would otherwise 
84.28 	be paid to the provider. Payments to health plan companies shall be adjusted toFor dental 
84.29 	services rendered on or after July 1, 2007, the commissioner shall increase reimbursement 
84.30 	by 33 percent above the reimbursement rate that would otherwise be paid to the critical 
84.31 	access dental provider. The commissioner shall pay the health plan companies in amounts 
84.32 	sufficient to reflect increased reimbursements to critical access dental providers as 
84.33 	approved by the commissioner. In determining which dentists and dental clinics shall be 
84.34 	deemed critical access dental providers, the commissioner shall review:
85.1 	(1) the utilization rate in the service area in which the dentist or dental clinic operates 
85.2 	for dental services to patients covered by medical assistance, general assistance medical 
85.3 	care, or MinnesotaCare as their primary source of coverage;
85.4 	(2) the level of services provided by the dentist or dental clinic to patients covered 
85.5 	by medical assistance, general assistance medical care, or MinnesotaCare as their primary 
85.6 	source of coverage; and
85.7 	(3) whether the level of services provided by the dentist or dental clinic is critical to 
85.8 	maintaining adequate levels of patient access within the service area.
85.9 	In the absence of a critical access dental provider in a service area, the commissioner may 
85.10 	designate a dentist or dental clinic as a critical access dental provider if the dentist or 
85.11 	dental clinic is willing to provide care to patients covered by medical assistance, general 
85.12 	assistance medical care, or MinnesotaCare at a level which significantly increases access 
85.13 	to dental care in the service area.
85.14 	The commissioner shall annually establish a reimbursement schedule for critical 
85.15 	access dental providers and provider-specific limits on total reimbursement received 
85.16 	under the reimbursement schedule, and shall notify each critical access dental provider 
85.17 	of the schedule and limit.
85.18 	(d) An entity that operates both a Medicare certified comprehensive outpatient 
85.19 	rehabilitation facility and a facility which was certified prior to January 1, 1993, that is 
85.20 	licensed under Minnesota Rules, parts 9570.2000 to 9570.3600, and for whom at least 33 
85.21 	percent of the clients receiving rehabilitation services in the most recent calendar year are 
85.22 	medical assistance recipients, shall be reimbursed by the commissioner for rehabilitation 
85.23 	services at rates that are 38 percent greater than the maximum reimbursement rate 
85.24 	allowed under paragraph (a), clause (2), when those services are (1) provided within the 
85.25 	comprehensive outpatient rehabilitation facility and (2) provided to residents of nursing 
85.26 	facilities owned by the entity.
85.27 	(e) Effective for services rendered on or after January 1, 2007, the commissioner 
85.28 	shall make payments for physician and professional services based on the Medicare 
85.29 	relative value units (RVU's). This change shall be budget neutral and the cost of 
85.30 	implementing RVU's will be incorporated in the established conversion factor.

85.31 	Sec. 27. [256B.764] REIMBURSEMENT FOR FAMILY PLANNING SERVICES.
85.32 	Effective for services rendered on or after July 1, 2007, payment rates for family 
85.33 	planning services shall be increased by 25 percent over the rates in effect June 30, 2007, 
85.34 	when these services are provided by a community clinic as defined in section 145.9268, 
85.35 	subdivision 1.

86.1 	Sec. 28. Minnesota Statutes 2006, section 256D.03, subdivision 3, is amended to read:
86.2 		Subd. 3.General assistance medical care; eligibility. (a) General assistance 
86.3 	medical care may be paid for any person who is not eligible for medical assistance under 
86.4 	chapter 256B, including eligibility for medical assistance based on a spenddown of excess 
86.5 	income according to section 256B.056, subdivision 5, or MinnesotaCare as defined in 
86.6 	paragraph (b), except as provided in paragraph (c), and:
86.7 	(1) who is receiving assistance under section 256D.05, except for families with 
86.8 	children who are eligible under Minnesota family investment program (MFIP), or who is 
86.9 	having a payment made on the person's behalf under sections 256I.01 to 256I.06; or
86.10 	(2) who is a resident of Minnesota; and
86.11 	(i) who has gross countable income not in excess of 75 percent of the federal poverty 
86.12 	guidelines for the family size, using a six-month budget period and whose equity in assets 
86.13 	is not in excess of $1,000 per assistance unit. General assistance medical care is not 
86.14 	available for applicants or enrollees who are otherwise eligible for medical assistance but 
86.15 	fail to verify their assets. Enrollees who become eligible for medical assistance shall be 
86.16 	terminated and transferred to medical assistance. Exempt assets, the reduction of excess 
86.17 	assets, and the waiver of excess assets must conform to the medical assistance program in 
86.18 	section 256B.056, subdivision 3, with the following exception: the maximum amount of 
86.19 	undistributed funds in a trust that could be distributed to or on behalf of the beneficiary by 
86.20 	the trustee, assuming the full exercise of the trustee's discretion under the terms of the 
86.21 	trust, must be applied toward the asset maximum;
86.22 	(ii) who has gross countable income above 75 percent of the federal poverty 
86.23 	guidelines but not in excess of 175 percent of the federal poverty guidelines for the 
86.24 	family size, using a six-month budget period, whose equity in assets is not in excess 
86.25 	of the limits in section 256B.056, subdivision 3c, and who applies during an inpatient 
86.26 	hospitalization; or
86.27 	(iii) the commissioner shall adjust the income standards under this section each July 
86.28 	1 by the annual update of the federal poverty guidelines following publication by the 
86.29 	United States Department of Health and Human Services.
86.30 	(b) Effective for applications and renewals processed on or after September 1, 2006, 
86.31 	general assistance medical care may not be paid for applicants or recipients who are adults 
86.32 	with dependent children under 21 whose gross family income is equal to or less than 275 
86.33 	percent of the federal poverty guidelines who are not described in paragraph (e).
86.34 	(c) Effective for applications and renewals processed on or after September 1, 2006, 
86.35 	general assistance medical care may be paid for applicants and recipients who meet all 
86.36 	eligibility requirements of paragraph (a), clause (2), item (i), for a temporary period 
87.1 	beginning the date of application. Immediately following approval of general assistance 
87.2 	medical care, enrollees shall be deemed eligible for MinnesotaCare based on approval of 
87.3 	general assistance medical care and  enrolled in MinnesotaCare under section 256L.04, 
87.4 	subdivision 7, with covered services as provided in section 256L.03 for the rest of the 
87.5 	six-monthinitial eligibility period, until their six-monthannual renewal. 
87.6 	(d) To be eligible for general assistance medical care following enrollment in 
87.7 	MinnesotaCare as required by paragraph (c), an individual must complete a new 
87.8 	application.
87.9 	(e) Applicants and recipients eligible under paragraph (a), clause (1); who have 
87.10 	applied for and are awaiting a determination of blindness or disability by the state medical 
87.11 	review team or a determination of eligibility for Supplemental Security Income or Social 
87.12 	Security Disability Insurance by the Social Security Administration; who fail to meet the 
87.13 	requirements of section 256L.09, subdivision 2; who are homeless as defined by United 
87.14 	States Code, title 42, section 11301, et seq.;  who are classified as end-stage renal disease 
87.15 	beneficiaries in the Medicare program; who are enrolled in private health care coverage as 
87.16 	defined in section 256B.02, subdivision 9; who are eligible under paragraph (j); or who 
87.17 	receive treatment funded pursuant to section 254B.02 are exempt from the MinnesotaCare 
87.18 	enrollment requirements of this subdivision.
87.19 	(f) For applications received on or after October 1, 2003, eligibility may begin no 
87.20 	earlier than the date of application. For individuals eligible under paragraph (a), clause 
87.21 	(2), item (i), a redetermination of eligibility must occur every 12 months. Individuals are 
87.22 	eligible under paragraph (a), clause (2), item (ii), only during inpatient hospitalization but 
87.23 	may reapply if there is a subsequent period of inpatient hospitalization.
87.24 	(g) Beginning September 1, 2006, Minnesota health care program applications and 
87.25 	renewals completed by recipients and applicants who are persons described in paragraph 
87.26 	(c) and submitted to the county agency shall be determined for MinnesotaCare eligibility 
87.27 	by the county agency. If all other eligibility requirements of this subdivision are met, 
87.28 	eligibility for general assistance medical care shall be available in any month during which 
87.29 	MinnesotaCare enrollment is pending. Upon notification of eligibility for MinnesotaCare, 
87.30 	notice of termination for eligibility for general assistance medical care shall be sent to 
87.31 	an applicant or recipient. If all other eligibility requirements of this subdivision are 
87.32 	met, eligibility for general assistance medical care shall be available until enrollment in 
87.33 	MinnesotaCare subject to the provisions of paragraphs (c), (e), and (f).
87.34 	(h) The date of an initial Minnesota health care program application necessary to 
87.35 	begin a determination of eligibility shall be the date the applicant has provided a name, 
87.36 	address, and Social Security number, signed and dated, to the county agency or the 
88.1 	Department of Human Services. If the applicant is unable to provide a name, address, 
88.2 	Social Security number, and signature when health care is delivered due to a medical 
88.3 	condition or disability, a health care provider may act on an applicant's behalf to establish 
88.4 	the date of an initial Minnesota health care program application by providing the county 
88.5 	agency or Department of Human Services with provider identification and a temporary 
88.6 	unique identifier for the applicant. The applicant must complete the remainder of the 
88.7 	application and provide necessary verification before eligibility can be determined. The 
88.8 	county agency must assist the applicant in obtaining verification if necessary.
88.9 	(i) County agencies are authorized to use all automated databases containing 
88.10 	information regarding recipients' or applicants' income in order to determine eligibility for 
88.11 	general assistance medical care or MinnesotaCare. Such use shall be considered sufficient 
88.12 	in order to determine eligibility and premium payments by the county agency.
88.13 	(j) General assistance medical care is not available for a person in a correctional 
88.14 	facility unless the person is detained by law for less than one year in a county correctional 
88.15 	or detention facility as a person accused or convicted of a crime, or admitted as an 
88.16 	inpatient to a hospital on a criminal hold order, and the person is a recipient of general 
88.17 	assistance medical care at the time the person is detained by law or admitted on a criminal 
88.18 	hold order and as long as the person continues to meet other eligibility requirements 
88.19 	of this subdivision.
88.20 	(k) General assistance medical care is not available for applicants or recipients who 
88.21 	do not cooperate with the county agency to meet the requirements of medical assistance.
88.22 	(l) In determining the amount of assets of an individual eligible under paragraph 
88.23 	(a), clause (2), item (i), there shall be included any asset or interest in an asset, including 
88.24 	an asset excluded under paragraph (a), that was given away, sold, or disposed of for 
88.25 	less than fair market value within the 60 months preceding application for general 
88.26 	assistance medical care or during the period of eligibility. Any transfer described in this 
88.27 	paragraph shall be presumed to have been for the purpose of establishing eligibility for 
88.28 	general assistance medical care, unless the individual furnishes convincing evidence to 
88.29 	establish that the transaction was exclusively for another purpose. For purposes of this 
88.30 	paragraph, the value of the asset or interest shall be the fair market value at the time it 
88.31 	was given away, sold, or disposed of, less the amount of compensation received. For any 
88.32 	uncompensated transfer, the number of months of ineligibility, including partial months, 
88.33 	shall be calculated by dividing the uncompensated transfer amount by the average monthly 
88.34 	per person payment made by the medical assistance program to skilled nursing facilities 
88.35 	for the previous calendar year. The individual shall remain ineligible until this fixed period 
88.36 	has expired. The period of ineligibility may exceed 30 months, and a reapplication for 
89.1 	benefits after 30 months from the date of the transfer shall not result in eligibility unless 
89.2 	and until the period of ineligibility has expired. The period of ineligibility begins in the 
89.3 	month the transfer was reported to the county agency, or if the transfer was not reported, 
89.4 	the month in which the county agency discovered the transfer, whichever comes first. For 
89.5 	applicants, the period of ineligibility begins on the date of the first approved application.
89.6 	(m) When determining eligibility for any state benefits under this subdivision, 
89.7 	the income and resources of all noncitizens shall be deemed to include their sponsor's 
89.8 	income and resources as defined in the Personal Responsibility and Work Opportunity 
89.9 	Reconciliation Act of 1996, title IV, Public Law 104-193, sections 421 and 422, and 
89.10 	subsequently set out in federal rules.
89.11 	(n) Undocumented noncitizens and nonimmigrants are ineligible for general 
89.12 	assistance medical care. For purposes of this subdivision, a nonimmigrant is an individual 
89.13 	in one or more of the classes listed in United States Code, title 8, section 1101(a)(15), and 
89.14 	an undocumented noncitizen is an individual who resides in the United States without the 
89.15 	approval or acquiescence of the Immigration and Naturalization Service.
89.16 	(o) Notwithstanding any other provision of law, a noncitizen who is ineligible for 
89.17 	medical assistance due to the deeming of a sponsor's income and resources, is ineligible 
89.18 	for general assistance medical care.
89.19 	(p) Effective July 1, 2003, general assistance medical care emergency services end.

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

89.21 	Sec. 29. Minnesota Statutes 2006, section 256D.03, subdivision 4, is amended to read:
89.22 		Subd. 4.General assistance medical care; services. (a)(i) For a person who is 
89.23 	eligible under subdivision 3, paragraph (a), clause (2), item (i), general assistance medical 
89.24 	care covers, except as provided in paragraph (c):
89.25 	(1) inpatient hospital services;
89.26 	(2) outpatient hospital services;
89.27 	(3) services provided by Medicare certified rehabilitation agencies;
89.28 	(4) prescription drugs and other products recommended through the process 
89.29 	established in section 256B.0625, subdivision 13;
89.30 	(5) equipment necessary to administer insulin and diagnostic supplies and equipment 
89.31 	for diabetics to monitor blood sugar level;
89.32 	(6) eyeglasses and eye examinations provided by a physician or optometrist;
89.33 	(7) hearing aids;
89.34 	(8) prosthetic devices;
89.35 	(9) laboratory and X-ray services;
90.1 	(10) physician's services;
90.2 	(11) medical transportation except special transportation;
90.3 	(12) chiropractic services as covered under the medical assistance program;
90.4 	(13) podiatric services;
90.5 	(14) dental services as covered under the medical assistance program;
90.6 	(15) outpatient services provided by a mental health center or clinic that is under 
90.7 	contract with the county board and is established under section 245.62;
90.8 	(16) day treatment services for mental illness provided under contract with the 
90.9 	county board;
90.10 	(17) prescribed medications for persons who have been diagnosed as mentally ill as 
90.11 	necessary to prevent more restrictive institutionalization;
90.12 	(18) psychological services, medical supplies and equipment, and Medicare 
90.13 	premiums, coinsurance and deductible payments;
90.14 	(19) medical equipment not specifically listed in this paragraph when the use of 
90.15 	the equipment will prevent the need for costlier services that are reimbursable under 
90.16 	this subdivision;
90.17 	(20) services performed by a certified pediatric nurse practitioner, a certified family 
90.18 	nurse practitioner, a certified adult nurse practitioner, a certified obstetric/gynecological 
90.19 	nurse practitioner, a certified neonatal nurse practitioner, or a certified geriatric nurse 
90.20 	practitioner in independent practice, if (1) the service is otherwise covered under this 
90.21 	chapter as a physician service, (2) the service provided on an inpatient basis is not included 
90.22 	as part of the cost for inpatient services included in the operating payment rate, and (3) the 
90.23 	service is within the scope of practice of the nurse practitioner's license as a registered 
90.24 	nurse, as defined in section 148.171;
90.25 	(21) services of a certified public health nurse or a registered nurse practicing in 
90.26 	a public health nursing clinic that is a department of, or that operates under the direct 
90.27 	authority of, a unit of government, if the service is within the scope of practice of the 
90.28 	public health nurse's license as a registered nurse, as defined in section 148.171;
90.29 	(22) telemedicine consultations, to the extent they are covered under section 
90.30 	256B.0625, subdivision 3b; and
90.31 	(23) mental health telemedicine and psychiatric consultation as covered under 
90.32 	section 256B.0625, subdivisions 46 and 48.; and
90.33 	(24) care coordination and patient education services provided by a community 
90.34 	health worker according to section 256B.0625, subdivision 49.
90.35 	(ii) Effective October 1, 2003, for a person who is eligible under subdivision 3, 
90.36 	paragraph (a), clause (2), item (ii), general assistance medical care coverage is limited 
91.1 	to inpatient hospital services, including physician services provided during the inpatient 
91.2 	hospital stay. A $1,000 deductible is required for each inpatient hospitalization.
91.3 	(b) Effective August 1, 2005, sex reassignment surgery is not covered under this 
91.4 	subdivision.
91.5 	(c) In order to contain costs, the commissioner of human services shall select 
91.6 	vendors of medical care who can provide the most economical care consistent with high 
91.7 	medical standards and shall where possible contract with organizations on a prepaid 
91.8 	capitation basis to provide these services. The commissioner shall consider proposals by 
91.9 	counties and vendors for prepaid health plans, competitive bidding programs, block grants, 
91.10 	or other vendor payment mechanisms designed to provide services in an economical 
91.11 	manner or to control utilization, with safeguards to ensure that necessary services are 
91.12 	provided. Before implementing prepaid programs in counties with a county operated or 
91.13 	affiliated public teaching hospital or a hospital or clinic operated by the University of 
91.14 	Minnesota, the commissioner shall consider the risks the prepaid program creates for the 
91.15 	hospital and allow the county or hospital the opportunity to participate in the program in a 
91.16 	manner that reflects the risk of adverse selection and the nature of the patients served by 
91.17 	the hospital, provided the terms of participation in the program are competitive with the 
91.18 	terms of other participants considering the nature of the population served. Payment for 
91.19 	services provided pursuant to this subdivision shall be as provided to medical assistance 
91.20 	vendors of these services under sections 256B.02, subdivision 8, and 256B.0625. For 
91.21 	payments made during fiscal year 1990 and later years, the commissioner shall consult 
91.22 	with an independent actuary in establishing prepayment rates, but shall retain final control 
91.23 	over the rate methodology.
91.24 	(d) Recipients eligible under subdivision 3, paragraph (a), shall pay the following 
91.25 	co-payments for services provided on or after October 1, 2003, and before January 1, 2008:
91.26 	(1) $25 for eyeglasses;
91.27 	(2) $25 for nonemergency visits to a hospital-based emergency room;
91.28 	(3) $3 per brand-name drug prescription and $1 per generic drug prescription, 
91.29 	subject to a $12 per month maximum for prescription drug co-payments. No co-payments 
91.30 	shall apply to antipsychotic drugs when used for the treatment of mental illness; and
91.31 	(4) 50 percent coinsurance on restorative dental services.
91.32 	(e) Recipients eligible under subdivision 3, paragraph (a), shall include the following 
91.33 	co-payments for services provided on or after January 1, 2008, and before December 
91.34 	31, 2008:
91.35 	(1) $25 for nonemergency visits to a hospital-based emergency room; and
92.1 	(2) $3 per brand-name drug prescription and $1 per generic drug prescription, 
92.2 	subject to a $12 per month maximum for prescription drug co-payments. No co-payments 
92.3 	shall apply to antipsychotic drugs when used for the treatment of mental illness.
92.4 	(f) Recipients eligible under subdivision 3, paragraph (a), shall include a $25 
92.5 	co-payment for nonemergency visits to a hospital-based emergency room for services 
92.6 	provided on or after January 1, 2009.
92.7 	(g) Co-payments shall be limited to one per day per provider for nonpreventive 
92.8 	visits, eyeglasses, and nonemergency visits to a hospital-based emergency room. 
92.9 	Recipients of general assistance medical care are responsible for all co-payments in this 
92.10 	subdivision. The general assistance medical care reimbursement to the provider shall be 
92.11 	reduced by the amount of the co-payment, except that reimbursement for prescription 
92.12 	drugs shall not be reduced once a recipient has reached the $12 per month maximum for 
92.13 	prescription drug co-payments. The provider collects the co-payment from the recipient. 
92.14 	Providers may not deny services to recipients who are unable to pay the co-payment, 
92.15 	except as provided in paragraph (f).
92.16 	(f) If it is the routine business practice of a provider to refuse service to an individual 
92.17 	with uncollected debt, the provider may include uncollected co-payments under this 
92.18 	section. A provider must give advance notice to a recipient with uncollected debt before 
92.19 	services can be denied.
92.20 	(h) General assistance medical care reimbursement to providers and payments to 
92.21 	managed care plans shall not be increased as a result of the removal of the co-payments 
92.22 	effective January 1, 2008. Effective January 1, 2009, reimbursement for prescription drugs 
92.23 	shall be restored to the extent that reimbursement was reduced due to the implementation 
92.24 	of co-payments.
92.25 	(g)(i) Any county may, from its own resources, provide medical payments for 
92.26 	which state payments are not made.
92.27 	(h)(j) Chemical dependency services that are reimbursed under chapter 254B must 
92.28 	not be reimbursed under general assistance medical care.
92.29 	(i)(k) The maximum payment for new vendors enrolled in the general assistance 
92.30 	medical care program after the base year shall be determined from the average usual and 
92.31 	customary charge of the same vendor type enrolled in the base year.
92.32 	(j)(l) The conditions of payment for services under this subdivision are the same 
92.33 	as the conditions specified in rules adopted under chapter 256B governing the medical 
92.34 	assistance program, unless otherwise provided by statute or rule.
93.1 	(k) (m) Inpatient and outpatient payments shall be reduced by five percent, effective 
93.2 	July 1, 2003. This reduction is in addition to the five percent reduction effective July 1, 
93.3 	2003, and incorporated by reference in paragraph (i) (k).
93.4 	(l)(n) Payments for all other health services except inpatient, outpatient, and 
93.5 	pharmacy services shall be reduced by five percent, effective July 1, 2003.
93.6 	(m)(o) Payments to managed care plans shall be reduced by five percent for services 
93.7 	provided on or after October 1, 2003, or upon federal approval, whichever is later.
93.8 	(n)(p) A hospital receiving a reduced payment as a result of this section may apply 
93.9 	the unpaid balance toward satisfaction of the hospital's bad debts.
93.10 	(o)(q) Fee-for-service payments for nonpreventive visits shall be reduced by $3 
93.11 	for services provided on or after January 1, 2006. For purposes of this subdivision, a 
93.12 	visit means an episode of service which is required because of a recipient's symptoms, 
93.13 	diagnosis, or established illness, and which is delivered in an ambulatory setting by 
93.14 	a physician or physician ancillary, chiropractor, podiatrist, advance practice nurse, 
93.15 	audiologist, optician, or optometrist.
93.16 	(p)(r) Payments to managed care plans shall not be increased as a result of the 
93.17 	removal of the $3 nonpreventive visit co-payment effective January 1, 2006.

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

93.19 	Sec. 30. Minnesota Statutes 2006, section 256L.01, subdivision 1, is amended to read:
93.20 		Subdivision 1.Scope. For purposes of sections 256L.01 to 256L.18 this chapter, 
93.21 	the following terms shall have the meanings given them. 

93.22 	Sec. 31. Minnesota Statutes 2006, section 256L.01, subdivision 4, is amended to read:
93.23 		Subd. 4.Gross individual or gross family income. (a) "Gross individual or gross 
93.24 	family income" for nonfarm self-employed means income calculated for the six-month
93.25 	12-month period of eligibility using the net profit or loss reported on the applicant's 
93.26 	federal income tax form for the previous year and using the medical assistance families 
93.27 	with children methodology for determining allowable and nonallowable self-employment 
93.28 	expenses and countable income.
93.29 	(b) "Gross individual or gross family income" for farm self-employed means income 
93.30 	calculated for the six-month12-month period of eligibility using as the baseline the 
93.31 	adjusted gross income reported on the applicant's federal income tax form for the previous 
93.32 	year and adding back in reported depreciation amounts that apply to the business in which 
93.33 	the family is currently engaged.
94.1 	(c) "Gross individual or gross family income" means the total income for all family 
94.2 	members, calculated for the six-month12-month period of eligibility.

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

94.4 	Sec. 32. Minnesota Statutes 2006, section 256L.03, subdivision 1, is amended to read:
94.5 		Subdivision 1.Covered health services. For individuals under section 256L.04, 
94.6 	subdivision 7, with income no greater than 75 percent of the federal poverty guidelines 
94.7 	or for families with children under section 256L.04, subdivision 1, all subdivisions of 
94.8 	this section apply. "Covered health services" means the health services reimbursed 
94.9 	under chapter 256B, with the exception of inpatient hospital services, special education 
94.10 	services, private duty nursing services, adult dental care services other than services 
94.11 	covered under section 256B.0625, subdivision 9, orthodontic services, nonemergency 
94.12 	medical transportation services, personal care assistant and case management services, 
94.13 	nursing home or intermediate care facilities services, inpatient mental health services, 
94.14 	and chemical dependency services. Outpatient mental health services covered under the 
94.15 	MinnesotaCare program are limited to diagnostic assessments, psychological testing, 
94.16 	explanation of findings, mental health telemedicine, psychiatric consultation, medication 
94.17 	management by a physician, day treatment, partial hospitalization, and individual, family, 
94.18 	and group psychotherapy.
94.19 	No public funds shall be used for coverage of abortion under MinnesotaCare 
94.20 	except where the life of the female would be endangered or substantial and irreversible 
94.21 	impairment of a major bodily function would result if the fetus were carried to term; or 
94.22 	where the pregnancy is the result of rape or incest.
94.23 	Covered health services shall be expanded as provided in this section.

94.24 	Sec. 33. Minnesota Statutes 2006, section 256L.03, subdivision 3, is amended to read:
94.25 		Subd. 3.Inpatient hospital services. (a) Covered health services shall include 
94.26 	inpatient hospital services, including inpatient hospital mental health services and inpatient 
94.27 	hospital and residential chemical dependency treatment, subject to those limitations 
94.28 	necessary to coordinate the provision of these services with eligibility under the medical 
94.29 	assistance spenddown. Prior to July 1, 1997, the inpatient hospital benefit for adult 
94.30 	enrollees is subject to an annual benefit limit of $10,000. The inpatient hospital benefit 
94.31 	for adult enrollees who qualify under section 256L.04, subdivision 7, or who qualify 
94.32 	under section 256L.04, subdivisions 1 and 2, with family gross income that exceeds 
94.33 	175 200 percent of the federal poverty guidelines or 215 percent of the federal poverty 
95.1 	guidelines on or after July 1, 2009, and who are not pregnant, is subject to an annual 
95.2 	limit of $10,000 $20,000. 
95.3 	(b) Admissions for inpatient hospital services paid for under section 256L.11, 
95.4 	subdivision 3, must be certified as medically necessary in accordance with Minnesota 
95.5 	Rules, parts 9505.0500 to 9505.0540, except as provided in clauses (1) and (2): 
95.6 	(1) all admissions must be certified, except those authorized under rules established 
95.7 	under section 254A.03, subdivision 3, or approved under Medicare; and 
95.8 	(2) payment under section 256L.11, subdivision 3, shall be reduced by five percent 
95.9 	for admissions for which certification is requested more than 30 days after the day of 
95.10 	admission. The hospital may not seek payment from the enrollee for the amount of the 
95.11 	payment reduction under this clause. 

95.12 	EFFECTIVE DATE. For parents and relative caretakers, this section is effective 
95.13 	July 1, 2007, or upon federal approval, whichever is later. For single adults and households 
95.14 	with no children, this section is effective January 1, 2008.

95.15 	Sec. 34. Minnesota Statutes 2006, section 256L.03, subdivision 5, is amended to read:
95.16 		Subd. 5.Co-payments and coinsurance. (a) Except as provided in paragraphs (b) 
95.17 	and (c), the MinnesotaCare benefit plan shall include the following co-payments and 
95.18 	coinsurance requirements for all enrollees:
95.19 	(1) ten percent of the paid charges for inpatient hospital services for adult enrollees, 
95.20 	subject to an annual inpatient out-of-pocket maximum of $1,000 per individual and 
95.21 	$3,000 per family;
95.22 	(2) $3 per prescription for adult enrollees;
95.23 	(3) $25 for eyeglasses for adult enrollees;
95.24 	(4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an 
95.25 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
95.26 	established illness, and which is delivered in an ambulatory setting by a physician or 
95.27 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
95.28 	audiologist, optician, or optometrist; and
95.29 	(5) $6 for nonemergency visits to a hospital-based emergency room.
95.30 	(b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of 
95.31 	children under the age of 21 in households with family income equal to or less than 175 
95.32 	percent of the federal poverty guidelines. Paragraph (a), clause (1), does not apply to 
95.33 	parents and relative caretakers of children under the age of 21 in households with family 
95.34 	income greater than 175 percent of the federal poverty guidelines for inpatient hospital 
95.35 	admissions occurring on or after January 1, 2001.
96.1 	(c) Paragraph (a), clauses (1) to (4), do not apply to pregnant women and children 
96.2 	under the age of 21.
96.3 	(d) Adult enrollees with family gross income that exceeds 175 200 percent of the 
96.4 	federal poverty guidelines or 215 percent of the federal poverty guidelines on or after July 
96.5 	1, 2009, and who are not pregnant shall be financially responsible for the coinsurance 
96.6 	amount, if applicable, and amounts which exceed the $10,000 $20,000 inpatient hospital 
96.7 	benefit limit.
96.8 	(e) When a MinnesotaCare enrollee becomes a member of a prepaid health 
96.9 	plan, or changes from one prepaid health plan to another during a calendar year, any 
96.10 	charges submitted towards the $10,000 $20,000 annual inpatient benefit limit, and any 
96.11 	out-of-pocket expenses incurred by the enrollee for inpatient services, that were submitted 
96.12 	or incurred prior to enrollment, or prior to the change in health plans, shall be disregarded.

96.13 	EFFECTIVE DATE. For parents and relative caretakers, this section is effective 
96.14 	July 1, 2007, or upon federal approval, whichever is later. For single adults and households 
96.15 	with no children, this section is effective January 1, 2008.

96.16 	Sec. 35. Minnesota Statutes 2006, section 256L.04, subdivision 1, is amended to read:
96.17 		Subdivision 1.Families with children. (a) Families with children with family 
96.18 	income equal to or less than 275 percent of the federal poverty guidelines for the 
96.19 	applicable family size shall be eligible for MinnesotaCare according to this section. All 
96.20 	other provisions of sections 256L.01 to 256L.18, including the insurance-related barriers 
96.21 	to enrollment under section 256L.07, shall apply unless otherwise specified. 
96.22 	(b) Parents who enroll in the MinnesotaCare program must also enroll their children, 
96.23 	if the children are eligible. Children may be enrolled separately without enrollment by 
96.24 	parents. However, if one parent in the household enrolls, both parents must enroll, unless 
96.25 	other insurance is available. If one child from a family is enrolled, all children must 
96.26 	be enrolled, unless other insurance is available. If one spouse in a household enrolls, 
96.27 	the other spouse in the household must also enroll, unless other insurance is available. 
96.28 	Families cannot choose to enroll only certain uninsured members.
96.29 	(c) Beginning October 1, 2003, the dependent sibling definition no longer applies 
96.30 	to the MinnesotaCare program. These persons are no longer counted in the parental 
96.31 	household and may apply as a separate household.
96.32 	(d) Beginning July 1, 2003, or upon federal approval, whichever is later, parents are 
96.33 	not eligible for MinnesotaCare if their gross income exceeds $50,000.

96.34 	Sec. 36. Minnesota Statutes 2006, section 256L.04, subdivision 1a, is amended to read:
97.1 		Subd. 1a.Social Security number required. (a) Individuals and families applying 
97.2 	for MinnesotaCare coverage must provide a Social Security number. This requirement 
97.3 	does not apply to an undocumented noncitizen or nonimmigrant who is eligible for 
97.4 	MinnesotaCare.
97.5 	(b) The commissioner shall not deny eligibility to an otherwise eligible applicant 
97.6 	who has applied for a Social Security number and is awaiting issuance of that Social 
97.7 	Security number.
97.8 	(c) Newborns enrolled under section 256L.05, subdivision 3, are exempt from the 
97.9 	requirements of this subdivision.
97.10 	(d) Individuals who refuse to provide a Social Security number because of 
97.11 	well-established religious objections are exempt from the requirements of this subdivision. 
97.12 	The term "well-established religious objections" has the meaning given in Code of Federal 
97.13 	Regulations, title 42, section 435.910.

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

97.15 	Sec. 37. Minnesota Statutes 2006, section 256L.04, subdivision 7, is amended to read:
97.16 		Subd. 7.Single adults and households with no children. The definition of eligible 
97.17 	persons includes all individuals and households with no children who have gross family 
97.18 	incomes that are equal to or less than 175 200 percent of the federal poverty guidelines.
97.19 	Effective July 1, 2009, the definition of eligible persons includes all individuals and 
97.20 	households with no children who have gross family incomes that are equal to or less than 
97.21 	215 percent of the federal poverty guidelines.

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

97.23 	Sec. 38. Minnesota Statutes 2006, section 256L.04, subdivision 10, is amended to read:
97.24 		Subd. 10.Citizenship requirements. (a) Eligibility for MinnesotaCare is limited to 
97.25 	citizens or nationals of the United States, qualified noncitizens, and other persons residing 
97.26 	lawfully in the United States as described in section 256B.06, subdivision 4, paragraphs 
97.27 	(a) to (e) and (j). Undocumented noncitizens and nonimmigrants ages 21 and over are 
97.28 	ineligible for MinnesotaCare.  
97.29 	(b) For purposes of this subdivision, a nonimmigrant is an individual in one or 
97.30 	more of the classes listed in United States Code, title 8, section 1101(a)(15), and an 
97.31 	undocumented noncitizen is an individual who resides in the United States without the 
97.32 	approval or acquiescence of the Immigration and Naturalization Service. 
98.1 	(c) Families with children who are citizens or nationals of the United States must 
98.2 	cooperate in obtaining satisfactory documentary evidence of citizenship or nationality 
98.3 	according to the requirements of the federal Deficit Reduction Act of 2005, Public Law 
98.4 	109-171. State and county workers must assist applicants in obtaining satisfactory 
98.5 	documentary evidence of citizenship or nationality.

98.6 	EFFECTIVE DATE. Paragraph (a) is effective January 1, 2008. Paragraph (c) 
98.7 	is effective July 1, 2007.

98.8 	Sec. 39. Minnesota Statutes 2006, section 256L.05, subdivision 1, is amended to read:
98.9 		Subdivision 1.Application and information availability. Applications and other 
98.10 	information application assistance must be made available to at provider offices, local 
98.11 	human services agencies, school districts, public and private elementary schools in which 
98.12 	25 percent or more of the students receive free or reduced price lunches, community health 
98.13 	offices, and Women, Infants and Children (WIC) program sites, Head Start program sites, 
98.14 	public housing councils, crisis nurseries, child care centers, early childhood education 
98.15 	and preschool program sites, legal aid offices, and libraries. These sites may accept 
98.16 	applications and forward the forms to the commissioner or local county human services 
98.17 	agencies that choose to participate as an enrollment site. Otherwise, applicants may apply 
98.18 	directly to the commissioner or to participating local county human services agencies. 
98.19 	Beginning January 1, 2000, MinnesotaCare enrollment sites will be expanded to include 
98.20 	local county human services agencies which choose to participate.

98.21 	Sec. 40. Minnesota Statutes 2006, section 256L.05, subdivision 1b, is amended to read:
98.22 		Subd. 1b.MinnesotaCare enrollment by county agencies. Beginning September 
98.23 	1, 2006, county agencies shall enroll single adults and households with no children 
98.24 	formerly enrolled in general assistance medical care in MinnesotaCare according to 
98.25 	section 256D.03, subdivision 3. County agencies shall perform all duties necessary 
98.26 	to administer the MinnesotaCare program ongoing for these enrollees, including the 
98.27 	redetermination of MinnesotaCare eligibility at six-month renewal.

98.28 	Sec. 41. Minnesota Statutes 2006, section 256L.05, subdivision 2, is amended to read:
98.29 		Subd. 2.Commissioner's duties. (a) The commissioner or county agency shall 
98.30 	use electronic verification as the primary method of income verification. If there is a 
98.31 	discrepancy between reported income and electronically verified income, an individual 
98.32 	may be required to submit additional verification. In addition, the commissioner shall 
98.33 	perform random audits to verify reported income and eligibility. The commissioner 
99.1 	may execute data sharing arrangements with the Department of Revenue and any other 
99.2 	governmental agency in order to perform income verification related to eligibility and 
99.3 	premium payment under the MinnesotaCare program.
99.4 	(b) In determining eligibility for MinnesotaCare, the commissioner shall require 
99.5 	applicants and enrollees seeking renewal of eligibility to verify both earned and unearned 
99.6 	income. The commissioner shall also require applicants and enrollees to submit the names 
99.7 	of their employers and a contact name with a telephone number for each employer for 
99.8 	purposes of verifying whether the applicant or enrollee, and any dependents, are eligible 
99.9 	for employer-subsidized coverage. Data collected is nonpublic data as defined in section 
99.10 	13.02, subdivision 9.

99.11 	Sec. 42. Minnesota Statutes 2006, section 256L.05, subdivision 3a, is amended to read:
99.12 		Subd. 3a.Renewal of eligibility. (a) Beginning January 1, 1999 July 1, 2007, an 
99.13 	enrollee's eligibility must be renewed every 12 months. The 12-month period begins in 
99.14 	the month after the month the application is approved.
99.15 	(b) Beginning October 1, 2004, an enrollee's eligibility must be renewed every 
99.16 	six months. The first six-month period of eligibility begins the month the application is 
99.17 	received by the commissioner. The effective date of coverage within the first six-month 
99.18 	period of eligibility is as provided in subdivision 3. Each new period of eligibility must 
99.19 	take into account any changes in circumstances that impact eligibility and premium 
99.20 	amount. An enrollee must provide all the information needed to redetermine eligibility by 
99.21 	the first day of the month that ends the eligibility period. The premium for the new period 
99.22 	of eligibility must be received as provided in section 256L.06 in order for eligibility to 
99.23 	continue.
99.24 	(c) For single adults and households with no children formerly enrolled in general 
99.25 	assistance medical care and enrolled in MinnesotaCare according to section 256D.03, 
99.26 	subdivision 3, the first six-month period of eligibility begins the month the enrollee 
99.27 	submitted the application or renewal for general assistance medical care.

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

99.30 	Sec. 43. Minnesota Statutes 2006, section 256L.07, subdivision 1, is amended to read:
99.31 		Subdivision 1.General requirements. (a) Children enrolled in the original 
99.32 	children's health plan as of September 30, 1992, children who enrolled in the 
99.33 	MinnesotaCare program after September 30, 1992, pursuant to Laws 1992, chapter 549, 
99.34 	article 4, section 17, and children who have family gross incomes that are equal to or 
100.1 	less than 150 percent of the federal poverty guidelines are eligible without meeting 
100.2 	the requirements of subdivision 2 and the four-month requirement in subdivision 3, as 
100.3 	long as they maintain continuous coverage in the MinnesotaCare program or medical 
100.4 	assistance. Children who apply for MinnesotaCare on or after the implementation date 
100.5 	of the employer-subsidized health coverage program as described in Laws 1998, chapter 
100.6 	407, article 5, section 45, who have family gross incomes that are equal to or less than 150 
100.7 	percent of the federal poverty guidelines, must meet the requirements of subdivision 2 to 
100.8 	be eligible for MinnesotaCare.
100.9 	(b) Families enrolled in MinnesotaCare under section 256L.04, subdivision 1, whose 
100.10 	income increases above 275 percent of the federal poverty guidelines, are no longer 
100.11 	eligible for the program and shall be disenrolled by the commissioner. Beginning January 
100.12 	1, 2008, individuals enrolled in MinnesotaCare under section 256L.04, subdivision 7, 
100.13 	whose income increases above 175 200 percent of the federal poverty guidelines or 215 
100.14 	percent of the federal poverty guidelines on or after July 1, 2009, are no longer eligible for 
100.15 	the program and shall be disenrolled by the commissioner. For persons disenrolled under 
100.16 	this subdivision, MinnesotaCare coverage terminates the last day of the calendar month 
100.17 	following the month in which the commissioner determines that the income of a family or 
100.18 	individual exceeds program income limits.
100.19 	(c) (b)  Notwithstanding paragraph (b) (a), children may remain enrolled in 
100.20 	MinnesotaCare if ten percent of their gross individual or gross family income as defined 
100.21 	in section 256L.01, subdivision 4, is less than the annual premium for a six-month
100.22 	policy with a $500 deductible available through the Minnesota Comprehensive Health 
100.23 	Association. Children who are no longer eligible for MinnesotaCare under this clause shall 
100.24 	be given a 12-month notice period from the date that ineligibility is determined before 
100.25 	disenrollment. The premium for children remaining eligible under this clause shall be the 
100.26 	maximum premium determined under section 256L.15, subdivision 2, paragraph (b).
100.27 	(d) Notwithstanding paragraphs (b) and (c), parents are not eligible for 
100.28 	MinnesotaCare if gross household income exceeds $25,000 for the six-month period 
100.29 	of eligibility.

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

100.32 	Sec. 44. Minnesota Statutes 2006, section 256L.07, subdivision 2, is amended to read:
100.33 		Subd. 2.Must not have access to employer-subsidized coverage. (a) To be 
100.34 	eligible, a family or individual an adult must not have access to subsidized health coverage 
100.35 	through an employer and must not have had access to employer-subsidized coverage 
101.1 	through a current employer for 18 months prior to application or reapplication. A family 
101.2 	or individual An adult whose employer-subsidized coverage is lost due to an employer 
101.3 	terminating health care coverage as an employee benefit during the previous 18 months 
101.4 	is not eligible.
101.5 	(b) This subdivision does not apply to a family or individual an adult who was 
101.6 	enrolled in MinnesotaCare within six months or less of reapplication and who no longer 
101.7 	has employer-subsidized coverage due to the employer terminating health care coverage 
101.8 	as an employee benefit.
101.9 	(c) For purposes of this requirement, subsidized health coverage means health 
101.10 	coverage for which the employer pays at least 50 percent of the cost of coverage for 
101.11 	the employee or dependent, or a higher percentage as specified by the commissioner. 
101.12 	Children are eligible for employer-subsidized coverage through either parent, including 
101.13 	the noncustodial parent. The commissioner must treat employer contributions to Internal 
101.14 	Revenue Code Section 125 plans and any other employer benefits intended to pay 
101.15 	health care costs as qualified employer subsidies toward the cost of health coverage for 
101.16 	employees for purposes of this subdivision.
101.17 	(d) Notwithstanding paragraph (c), if the cost of the employer's health plan coverage 
101.18 	is greater than eight percent of the applicant's family gross income, the applicant shall 
101.19 	not be deemed as having access to employer-subsidized health coverage under this 
101.20 	subdivision. For purposes of determining the cost of the employer's health plan coverage, 
101.21 	the commissioner shall determine the annual premium that the employee is required to pay 
101.22 	for the coverage, plus any deductibles required under the health plan.
101.23 	(e) This subdivision does not apply to children.

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

101.26 	Sec. 45. Minnesota Statutes 2006, section 256L.07, subdivision 3, is amended to read:
101.27 		Subd. 3.Other health coverage. (a) Families and individualsAdults enrolled in the 
101.28 	MinnesotaCare program must have no health coverage while enrolled or for at least four 
101.29 	months prior to application and renewal. Children enrolled in the original children's health 
101.30 	plan and children in families with income equal to or less than 150 percent of the federal 
101.31 	poverty guidelines, who have other health insurance, are eligible if the coverage:
101.32 	(1) lacks two or more of the following:
101.33 	(i) basic hospital insurance;
101.34 	(ii) medical-surgical insurance;
101.35 	(iii) prescription drug coverage;
102.1 	(iv) dental coverage; or
102.2 	(v) vision coverage;
102.3 	(2) requires a deductible of $100 or more per person per year; or
102.4 	(3) lacks coverage because the child has exceeded the maximum coverage for a 
102.5 	particular diagnosis or the policy excludes a particular diagnosis.
102.6 	The commissioner may change this eligibility criterion for sliding scale premiums in 
102.7 	order to remain within the limits of available appropriations. The requirement of no health 
102.8 	coverage This paragraph does not apply to newborns children.
102.9 	(b) Medical assistance, general assistance medical care, and the Civilian Health and 
102.10 	Medical Program of the Uniformed Service, CHAMPUS, or other coverage provided under 
102.11 	United States Code, title 10, subtitle A, part II, chapter 55, are not considered insurance or 
102.12 	health coverage for purposes of the four-month requirement described in this subdivision.
102.13 	(c) For purposes of this subdivision, an applicant or enrollee who is entitled to 
102.14 	Medicare Part A or enrolled in Medicare Part B coverage under title XVIII of the Social 
102.15 	Security Act, United States Code, title 42, sections 1395c to 1395w-152, is considered to 
102.16 	have health coverage. An applicant or enrollee who is entitled to premium-free Medicare 
102.17 	Part A may not refuse to apply for or enroll in Medicare coverage to establish eligibility 
102.18 	for MinnesotaCare.
102.19 	(d) Applicants who were recipients of medical assistance or general assistance 
102.20 	medical care within one month of application must meet the provisions of this subdivision 
102.21 	and subdivision 2.
102.22 	(e) Cost-effective health insurance that was paid for by medical assistance is not 
102.23 	considered health coverage for purposes of the four-month requirement under this 
102.24 	section, except if the insurance continued after medical assistance no longer considered it 
102.25 	cost-effective or after medical assistance closed.

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

102.28 	Sec. 46. Minnesota Statutes 2006, section 256L.07, subdivision 6, is amended to read:
102.29 		Subd. 6.Exception for certain adults. Single adults and households with 
102.30 	no children formerly enrolled in general assistance medical care and enrolled in 
102.31 	MinnesotaCare according to section 256D.03, subdivision 3, are eligible without meeting 
102.32 	the requirements of this section until six-month renewal.

102.33 	Sec. 47. Minnesota Statutes 2006, section 256L.09, subdivision 4, is amended to read:
103.1 		Subd. 4.Eligibility as Minnesota resident. (a) For purposes of this section, a 
103.2 	permanent Minnesota resident is a person who has demonstrated, through persuasive and 
103.3 	objective evidence, that the person is domiciled in the state and intends to live in the 
103.4 	state permanently.
103.5 	(b) To be eligible as a permanent resident, an applicant must demonstrate the 
103.6 	requisite intent to live in the state permanently by:
103.7 	(1) showing that the applicant maintains a residence at a verified address other than a 
103.8 	place of public accommodation, through the use of evidence of residence described in 
103.9 	section 256D.02, subdivision 12a, paragraph (b), clause (1) (2); 
103.10 	(2) demonstrating that the applicant has been continuously domiciled in the state for 
103.11 	no less than 180 days immediately before the application; and
103.12 	(3) signing an affidavit declaring that (A) the applicant currently resides in the state 
103.13 	and intends to reside in the state permanently; and (B) the applicant did not come to the 
103.14 	state for the primary purpose of obtaining medical coverage or treatment.
103.15 	(c) A person who is temporarily absent from the state does not lose eligibility for 
103.16 	MinnesotaCare. "Temporarily absent from the state" means the person is out of the state 
103.17 	for a temporary purpose and intends to return when the purpose of the absence has been 
103.18 	accomplished. A person is not temporarily absent from the state if another state has 
103.19 	determined that the person is a resident for any purpose. If temporarily absent from the 
103.20 	state, the person must follow the requirements of the health plan in which the person is 
103.21 	enrolled to receive services.

103.22 	Sec. 48. Minnesota Statutes 2006, section 256L.11, subdivision 7, is amended to read:
103.23 		Subd. 7.Critical access dental providers. Effective for dental services provided 
103.24 	to MinnesotaCare enrollees on or after January 1, 2007, the commissioner shall increase 
103.25 	payment rates to dentists and dental clinics deemed by the commissioner to be critical 
103.26 	access providers under section 256B.76, paragraph (c), by 50 percent above the payment 
103.27 	rate that would otherwise be paid to the provider. The commissioner shall adjust the rates 
103.28 	paid on or after January 1, 2007, topay the prepaid health plans under contract with the 
103.29 	commissioner amounts sufficient to reflect this rate increase. The prepaid health plan must 
103.30 	pass this rate increase to providers who have been identified by the commissioner as 
103.31 	critical access dental providers under section 256B.76, paragraph (c).

103.32 	Sec. 49. Minnesota Statutes 2006, section 256L.15, subdivision 1, is amended to read:
103.33 		Subdivision 1.Premium determination. (a) Families with children and individuals 
103.34 	shall pay a premium determined according to subdivision 2.
104.1 	(b) Pregnant women and children under age two are exempt from the provisions 
104.2 	of section 256L.06, subdivision 3, paragraph (b), clause (3), requiring disenrollment 
104.3 	for failure to pay premiums. For pregnant women, this exemption continues until the 
104.4 	first day of the month following the 60th day postpartum. Women who remain enrolled 
104.5 	during pregnancy or the postpartum period, despite nonpayment of premiums, shall be 
104.6 	disenrolled on the first of the month following the 60th day postpartum for the penalty 
104.7 	period that otherwise applies under section 256L.06, unless they begin paying premiums. 
104.8 	(c) Members of the military and their families who meet the eligibility criteria 
104.9 	for MinnesotaCare upon eligibility approval made within 24 months following the end 
104.10 	of the member's tour of active duty shall have their premiums paid by the commissioner. 
104.11 	The effective date of coverage for an individual or family who meets the criteria of this 
104.12 	paragraph shall be the first day of the month following the month in which eligibility is 
104.13 	approved. This exemption applies for 12 months. 

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

104.17 	Sec. 50. Minnesota Statutes 2006, section 256L.15, subdivision 2, is amended to read:
104.18 		Subd. 2.Sliding fee scale; monthly gross individual or family income. (a) The 
104.19 	commissioner shall establish a sliding fee scale to determine the percentage of monthly 
104.20 	gross individual or family income that households at different income levels must pay 
104.21 	to obtain coverage through the MinnesotaCare program. The sliding fee scale must be 
104.22 	based on the enrollee's monthly gross individual or family income. The sliding fee scale 
104.23 	must contain separate tables based on enrollment of one, two, or three or more persons. 
104.24 	The sliding fee scale begins with a premium of 1.5 percent of monthly gross individual or 
104.25 	family income for individuals or families with incomes below the limits for the medical 
104.26 	assistance program for families and children in effect on January 1, 1999, and proceeds 
104.27 	through the following evenly spaced steps: 1.8, 2.3, 3.1, 3.8, 4.8, 5.9, 7.4, and 8.8 percent. 
104.28 	These percentages are matched to evenly spaced income steps ranging from the medical 
104.29 	assistance income limit for families and children in effect on January 1, 1999, to 275 
104.30 	percent of the federal poverty guidelines for the applicable family size, up to a family size 
104.31 	of five. The sliding fee scale for a family of five must be used for families of more than 
104.32 	five. Effective October 1, 2003, the commissioner shall increase each percentage by 0.5 
104.33 	percentage points for enrollees with income greater than 100 percent but not exceeding 
104.34 	200 percent of the federal poverty guidelines and shall increase each percentage by 1.0 
104.35 	percentage points for families and children with incomes greater than 200 percent of 
105.1 	the federal poverty guidelines. The sliding fee scale and percentages are not subject to 
105.2 	the provisions of chapter 14. If a family or individual reports increased income after 
105.3 	enrollment, premiums shall be adjusted at the time the change in income is reported.
105.4 	(b) Children in Families whose gross income is above 275 percent of the federal 
105.5 	poverty guidelines shall pay the maximum premium. The maximum premium is defined 
105.6 	as a base charge for one, two, or three or more enrollees so that if all MinnesotaCare 
105.7 	cases paid the maximum premium, the total revenue would equal the total cost of 
105.8 	MinnesotaCare medical coverage and administration. In this calculation, administrative 
105.9 	costs shall be assumed to equal ten percent of the total. The costs of medical coverage 
105.10 	for pregnant women and children under age two and the enrollees in these groups shall 
105.11 	be excluded from the total. The maximum premium for two enrollees shall be twice the 
105.12 	maximum premium for one, and the maximum premium for three or more enrollees shall 
105.13 	be three times the maximum premium for one.
105.14 	(c) After calculating the percentage of premium each enrollee shall pay under 
105.15 	paragraph (a), eight percent shall be added to the premium.

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

105.18 	Sec. 51. Minnesota Statutes 2006, section 256L.15, subdivision 4, is amended to read:
105.19 		Subd. 4.Exception for transitioned adults. County agencies shall pay premiums 
105.20 	for single adults and households with no children formerly enrolled in general assistance 
105.21 	medical care and enrolled in MinnesotaCare according to section 256D.03, subdivision 3, 
105.22 	until six-month renewal for six months. The county agency has the option of continuing to 
105.23 	pay premiums for these enrollees past the first six-monthsix months until the 12-month 
105.24 	renewal period.

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

105.26 	Sec. 52. Minnesota Statutes 2006, section 256L.17, subdivision 2, is amended to read:
105.27 		Subd. 2.Limit on total assets. (a) Effective July 1, 2002, or upon federal approval, 
105.28 	whichever is later, in order to be eligible for the MinnesotaCare program, a household of 
105.29 	two or more persons must not own more than $20,000 in total net assets, and a household 
105.30 	of one person must not own more than $10,000 in total net assets.
105.31 	(b) For purposes of this subdivision, assets are determined according to section 
105.32 	256B.056, subdivision 3c, except that workers' compensation settlements received due to 
105.33 	a work-related injury shall not be considered. 
106.1 	(c) State-funded MinnesotaCare is not available for applicants or enrollees who are 
106.2 	otherwise eligible for medical assistance but fail to verify assets. Enrollees who become 
106.3 	eligible for federally funded medical assistance shall be terminated from state-funded 
106.4 	MinnesotaCare and transferred to medical assistance.

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

106.7 	Sec. 53. Minnesota Statutes 2006, section 256L.17, subdivision 3, is amended to read:
106.8 		Subd. 3.Documentation. (a) The commissioner of human services shall require 
106.9 	individuals and families, at the time of application or renewal, to indicate on a checkoff 
106.10 	form developed by the commissioner whether they satisfy the MinnesotaCare asset 
106.11 	requirement. This form must include the following or similar language: "To be eligible for 
106.12 	MinnesotaCare, individuals and families must not own net assets in excess of $30,000 
106.13 	for a household of two or more persons or $15,000 for a household of one person, not 
106.14 	including a homestead, household goods and personal effects, assets owned by children, 
106.15 	vehicles used for employment, court-ordered settlements up to $10,000, individual 
106.16 	retirement accounts, and capital and operating assets of a trade or business up to $200,000. 
106.17 	Do you and your household own net assets in excess of these limits?"
106.18 	(b) The commissioner may require individuals and families to provide any 
106.19 	information the commissioner determines necessary to verify compliance with the asset 
106.20 	requirement, if the commissioner determines that there is reason to believe that an 
106.21 	individual or family has assets that exceed the program limit.

106.22 	Sec. 54. Minnesota Statutes 2006, section 256L.17, subdivision 7, is amended to read:
106.23 		Subd. 7.Exception for certain adults. Single adults and households with 
106.24 	no children formerly enrolled in general assistance medical care and enrolled in 
106.25 	MinnesotaCare according to section 256D.03, subdivision 3, are exempt from the 
106.26 	requirements of this section until six-month renewal.

106.27 	Sec. 55. [256L.20] MINNESOTACARE OPTION FOR SMALL EMPLOYERS.
106.28 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
106.29 	have the meanings given them.
106.30 	(b) "Dependent" means an unmarried child who is under the age of 21 and who is 
106.31 	not eligible for employer-subsidized health coverage. 
106.32 	(c) "Eligible employee" means an employee who works at least 20 hours per week 
106.33 	for an eligible employer. Eligible employee does not include an employee who works 
107.1 	on a temporary or substitute basis or who does not work more than 26 weeks annually. 
107.2 	Coverage of an eligible employee includes the employee's spouse if the spouse does not 
107.3 	have access to employer-subsidized health coverage. 
107.4 	(d) "Eligible employer" means a business that employs at least two, but not more 
107.5 	than 50, eligible employees, the majority of whom are employed in the state, and includes 
107.6 	a municipality that has 50 or fewer employees. 
107.7 	(e) "Employer-subsidized health coverage" has the meaning given under section 
107.8 	256L.07, subdivision 2, paragraphs (c) and (d).
107.9 	(f) "Maximum premium" has the meaning given under section 256L.15, subdivision 
107.10 	2, paragraph (b), except that the cost of medical coverage for single adults and households 
107.11 	without children formerly enrolled in general assistance medical care and enrolled in 
107.12 	MinnesotaCare in accordance with section 256D.03, subdivision 3, paragraph (c), are 
107.13 	excluded from the total cost when determining the maximum premium.
107.14 	(g) "Participating employer" means an eligible employer who meets the requirements 
107.15 	in subdivision 3 and applies to the commissioner to enroll its eligible employees and their 
107.16 	dependents in the MinnesotaCare program.
107.17 	(h) "Program" means the MinnesotaCare program. 
107.18 		Subd. 2.Application and renewal procedures. (a) Eligible employees and their 
107.19 	dependents may enroll in MinnesotaCare through their employer if their employer meets 
107.20 	the requirements of subdivision 3. The commissioner shall establish procedures for an 
107.21 	eligible employer to participate in the program. The commissioner shall provide an 
107.22 	employer with applications for each eligible employee. The employee must fill out the 
107.23 	application and submit it to the employer. The employer must submit the completed 
107.24 	applications to the commissioner. The commissioner shall determine eligibility for the 
107.25 	program and determine the premiums owed by the employer for each eligible employee. 
107.26 	The commissioner may require eligible employees to provide income verification to 
107.27 	determine premiums.
107.28 	(b) The effective date of coverage is according to section 256L.05, subdivision 3.
107.29 	(c) An employer's eligibility must be renewed every 12 months. At that time, all 
107.30 	eligible employees enrolled in the program regardless of their enrollment date must 
107.31 	reapply.
107.32 	(d) A participating employer must inform the commissioner of any changes in its 
107.33 	employees and premiums must be adjusted accordingly beginning the first day of the 
107.34 	month following the month in which the change is reported. An employer's premiums 
107.35 	shall not be adjusted due to a change in an employee's income until the next renewal 
107.36 	period. Eligible employees hired after enrollment must fill out an application and submit 
108.1 	the application to the commissioner. Employees who terminate their employment with 
108.2 	the participating employer shall remain enrolled in the program until the last day of the 
108.3 	month in which employment is terminated. A terminating employee may remain in the 
108.4 	MinnesotaCare program if the employee meets the eligibility requirements of enrollment 
108.5 	described in sections 256L.01 to 256L.18.
108.6 		Subd. 3.Employer requirements.  In order to participate, an eligible employer 
108.7 	must meet the following requirements:
108.8 	(1) agree to contribute toward the cost of the premium for the employee, the 
108.9 	employee's spouse, and the employee's dependents according to subdivision 4; 
108.10 	(2) certify that each eligible employee was informed of the availability of coverage 
108.11 	through the program and that at least 75 percent of its eligible employees are planning to 
108.12 	or are enrolled in the program; and
108.13 	(3) have not provided employer-subsidized health coverage as an employee benefit 
108.14 	during the previous 12 months, as defined in section 256L.07, subdivision 2, paragraph (c). 
108.15 		Subd. 4.Premiums. (a) The premium for coverage provided under this section is 
108.16 	equal to the maximum premium as defined in subdivision 1 regardless of the income 
108.17 	of the eligible employee.
108.18 	(b) For eligible employees without dependents with a gross family income equal to 
108.19 	or less than 200 percent of the federal poverty guidelines or 215 percent of the federal 
108.20 	poverty guidelines on or after July 1, 2009, and for eligible employees with dependents 
108.21 	whose gross family income is equal to or less than 275 percent of the federal poverty 
108.22 	guidelines, the participating employer shall pay 50 percent of the premium established 
108.23 	under paragraph (a) for the eligible employee, the employee's spouse, and any dependents, 
108.24 	if applicable. 
108.25 	(c) For eligible employees without dependents with a gross family income over 200 
108.26 	percent of the federal poverty guidelines or 215 percent of the federal poverty guidelines 
108.27 	on or after July 1, 2009, and for eligible employees with dependents with a gross family 
108.28 	income over 275 percent of the federal poverty guidelines, the participating employer shall 
108.29 	pay the full cost of the premium established under paragraph (a) for the eligible employee, 
108.30 	the employee's spouse, and any dependents, if applicable. The participating employer may 
108.31 	require the employee to pay a portion of the cost of the premium so long as the employer 
108.32 	pays at least 50 percent. If the employer requires the employee to pay a portion of the 
108.33 	premium, the employee shall pay the portion of the cost to the employer. 
108.34 	(d) The commissioner shall collect premium payments from participating employers 
108.35 	for eligible employees, spouses, and dependents who are covered by the program as 
109.1 	provided under this section. All premiums collected shall be deposited in the health care 
109.2 	access fund. 
109.3 	(e) Nonpayment of premiums by a participating employer will result in the 
109.4 	disenrollment of all eligible employees, spouses, and dependents from the program 
109.5 	effective the end of the month in which the premium was due.
109.6 		Subd. 5.Coverage. (a) The coverage offered to those enrolled in the program under 
109.7 	this section shall include all health services described under section 256L.03 and all 
109.8 	co-payments and coinsurance requirements under section 256L.03 shall apply except for 
109.9 	as provided under paragraph (b).
109.10 	(b) Notwithstanding paragraph (a), the inpatient hospital benefit annual limit in 
109.11 	section 256L.03, subdivision 3, does not apply to adult enrollees enrolled in the program 
109.12 	under this section.
109.13 		Subd. 6.Enrollment. For purposes of enrollment under this section, income 
109.14 	eligibility limits established under sections 256L.04 and 256L.07, asset limits established 
109.15 	under section 256L.17, and the barriers established under section 256L.07, subdivision 2 
109.16 	or 3, do not apply to applicants eligible for this program unless specified in this section. 
109.17 	The residency requirement under section 256L.09 applies to this section.
109.18 		Subd. 7.Outreach. The commissioner shall provide information on the availability 
109.19 	of this buy-in option for small employers and application forms to entities that provide 
109.20 	insurance information to small employers, including, but not limited to, insurance agents 
109.21 	and chambers of commerce. The commissioner shall establish an assistance fee of $25 per 
109.22 	enrolled employee for such entities that assist eligible employers and their employees in 
109.23 	applying to the program.
109.24 		Subd. 8.Provider payment. (a) Payment to providers under this section shall be 
109.25 	the same rates and conditions under section 256L.12 except that payments for inpatient 
109.26 	hospital services for employees without dependents and for the adult employees with 
109.27 	dependents with gross family incomes greater than 200 percent of the federal poverty 
109.28 	guidelines shall be paid according to paragraph (b).
109.29 	(b) The commissioner shall pay hospitals the medical assistance rate for inpatient 
109.30 	hospital services established under section 256.969 minus the $20,000 annual inpatient 
109.31 	benefit limit and any applicable co-payments or coinsurance requirements.

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

109.33 	Sec. 56. REINVESTMENT FOR COUNTY-BASED HEALTH CARE 
109.34 	PROGRAMS.
 110.1 	Any county that realizes savings from electing to provide health care services 
110.2 	through a county-based purchasing plan under Minnesota Statutes, section 256B.692, 
110.3 	must reinvest the savings into health care services or programs.

110.4 	Sec. 57. IMPLEMENTATION.
 110.5 	The commissioner of human services shall implement the amendments to Minnesota 
110.6 	Statutes, sections 256.969, subdivision 9; 256.969, subdivision 27; and 256B.199, on the 
110.7 	earliest date for which the Centers for Medicare and Medicaid Services grants approval. 
110.8 	The commissioner may alter the reporting date for Hennepin County and Hennepin 
110.9 	County Medical Center in Minnesota Statutes, section 256.969, subdivision 9, paragraph 
110.10 	(f), clause (2), to reflect the approved effective date.

110.11 	Sec. 58.  REPEALER.
 110.12 	Minnesota Statutes 2006, sections 256B.0631, subdivision 4; 256L.035; and 
110.13 	256L.07, subdivision 2a, are repealed.

110.14 	ARTICLE 5
110.15 	CONTINUING CARE

110.16 	Section 1. Minnesota Statutes 2006, section 47.58, subdivision 8, is amended to read:
110.17 		Subd. 8.Counseling; requirement; penalty. A lender, mortgage banking company, 
110.18 	or other mortgage lender not related to the mortgagor must keep a certificate on file 
110.19 	documenting that the borrower, prior to entering into the reverse mortgage loan, received 
110.20 	counseling as defined in this subdivision from an organization that meets the requirements 
110.21 	of section 462A.209 and is a housing counseling agency approved by the Department of 
110.22 	Housing and Urban Development. The certificate must be signed by the mortgagor and 
110.23 	the counselor and include the date of the counseling, the name, address, and telephone 
110.24 	number of both the mortgagor and the organization providing counseling. A failure by 
110.25 	the lender to comply with this subdivision results in a $1,000 civil penalty payable to 
110.26 	the mortgagor. For the purposes of this subdivision, "counseling" means the following 
110.27 	services are provided to the borrower: 
110.28 	(1) a review of the advantages and disadvantages of reverse mortgage programs;
110.29 	(2) an explanation of how the reverse mortgage affects the borrower's estate and 
110.30 	public benefits;
110.31 	(3) an explanation of the lending process;
110.32 	(4) a discussion of the borrower's supplemental income needs; and
111.1 	(5) an explanation of the provisions of sections 256B.0913, subdivision 17, and 
111.2 	462A.05, subdivision 42; and
111.3 	(6) an opportunity to ask questions of the counselor.

111.4 	Sec. 2. [252.295] LICENSING EXCEPTION.
111.5 	(a) Notwithstanding section 252.294, the commissioner may license two six-bed, 
111.6 	level B intermediate care facilities for persons with developmental disabilities (ICF's/MR) 
111.7 	to replace a 15-bed level A facility in Minneapolis that is not accessible to persons with 
111.8 	disabilities. The new facilities must be accessible to persons with disabilities and must 
111.9 	be located on a different site or sites in Hennepin County. Notwithstanding section 
111.10 	256B.5012, the payment rate at the new facilities is $200.47 plus any rate adjustments for 
111.11 	ICF's/MR effective on or after July 1, 2007.
111.12 	(b) Notwithstanding section 252.294, the commissioner may license one five-bed 
111.13 	level B intermediate care facility for persons with developmental disabilities to replace 
111.14 	a downsized 21-bed facility attached to a day training and habilitation program in 
111.15 	Chisholm. Notwithstanding section 256B.5012, the facility must serve persons who 
111.16 	require substantial nursing care and are able to leave the facility to receive day training 
111.17 	and habilitation services. The payment rate at this facility is $274.50.
111.18 	(c) Notwithstanding section 256B.5012, the payment rate of a six-bed level B 
111.19 	intermediate care facility in Hibbing for persons with developmental disabilities who 
111.20 	require substantial nursing care and are able to leave the facility to receive day training 
111.21 	and habilitation services shall be increased to $250.84.
111.22 	(d) The payment rates in paragraphs (b) and (c) are effective October 1, 2009.

111.23 	Sec. 3. Minnesota Statutes 2006, section 252.32, subdivision 3, is amended to read:
111.24 		Subd. 3.Amount of support grant; use. Support grant amounts shall be 
111.25 	determined by the county social service agency. Services and items purchased with a 
111.26 	support grant must:
111.27 	(1) be over and above the normal costs of caring for the dependent if the dependent 
111.28 	did not have a disability;
111.29 	(2) be directly attributable to the dependent's disabling condition; and
111.30 	(3) enable the family to delay or prevent the out-of-home placement of the dependent.
111.31 	The design and delivery of services and items purchased under this section must suit 
111.32 	the dependent's chronological age and be provided in the least restrictive environment 
111.33 	possible, consistent with the needs identified in the individual service plan.
112.1 	Items and services purchased with support grants must be those for which there 
112.2 	are no other public or private funds available to the family. Fees assessed to parents 
112.3 	for health or human services that are funded by federal, state, or county dollars are not 
112.4 	reimbursable through this program.
112.5 	In approving or denying applications, the county shall consider the following factors:
112.6 	(1) the extent and areas of the functional limitations of the disabled child;
112.7 	(2) the degree of need in the home environment for additional support; and
112.8 	(3) the potential effectiveness of the grant to maintain and support the person in 
112.9 	the family environment.
112.10 	The maximum monthly grant amount shall be $250 per eligible dependent, or 
112.11 	$3,000 per eligible dependent per state fiscal year, within the limits of available funds and 
112.12 	as adjusted by any legislatively authorized cost-of-living adjustment. The county social 
112.13 	service agency may consider the dependent's supplemental security income in determining 
112.14 	the amount of the support grant.
112.15 	Any adjustments to their monthly grant amount must be based on the needs of the 
112.16 	family and funding availability.

112.17 	Sec. 4. Minnesota Statutes 2006, section 256.01, is amended by adding a subdivision 
112.18 	to read:
112.19 		Subd. 23.Reverse mortgage information and referral. The commissioner, in 
112.20 	cooperation with the commissioner of the Minnesota Housing Finance Agency, shall: 
112.21 	(1) establish an information and referral system to inform eligible persons regarding 
112.22 	the availability of reverse mortgages and state incentives available to persons who take 
112.23 	out certain reverse mortgages. The information and referral system shall be established 
112.24 	involving the Senior LinkAge Line, county and tribal agencies, community housing 
112.25 	agencies and organizations, Minnesota-certified reverse mortgage counselors, reverse 
112.26 	mortgage lenders, senior and elder community organizations, and other relevant entities; 
112.27 	and 
112.28 	(2) coordinate necessary training for Senior LinkAge Line employees, mortgage 
112.29 	counselors, and lenders regarding the provisions of sections 256B.0913, subdivision 
112.30 	17, and 462A.05, subdivision 42.

112.31 	Sec. 5. Minnesota Statutes 2006, section 256.482, subdivision 1, is amended to read:
112.32 		Subdivision 1.Establishment; members. There is hereby established the Council 
112.33 	on Disability which shall consist of 21 members appointed by the governor. Members 
112.34 	shall be appointed from the general public and from organizations which provide services 
113.1 	for persons who have a disability. A majority of council members shall be persons with a 
113.2 	disability or parents or guardians of persons with a disability. There shall be at least 
113.3 	one member of the council appointed from each of the state development regions. The 
113.4 	commissioners of the Departments of Education, Human Services, Health, and Human 
113.5 	Rights and the directors of the Rehabilitation Services and State Services for the Blind in 
113.6 	the Department of Employment and Economic Development or their designees shall serve 
113.7 	as ex officio members of the council without vote. In addition, the council may appoint ex 
113.8 	officio members from other bureaus, divisions, or sections of state departments which are 
113.9 	directly concerned with the provision of services to persons with a disability.
113.10 	Notwithstanding the provisions of section 15.059, each member of the council 
113.11 	appointed by the governor shall serve a three-year term and until a successor is appointed 
113.12 	and qualified. The compensation and removal of all members shall be as provided in 
113.13 	section 15.059. The council performs functions that are not purely advisory, therefore the 
113.14 	expiration dates provided in section 15.059 do not apply. The governor shall appoint a 
113.15 	chair of the council from among the members appointed from the general public or who 
113.16 	are persons with a disability or their parents or guardians. Vacancies shall be filled by the 
113.17 	authority for the remainder of the unexpired term. 

113.18 	Sec. 6. Minnesota Statutes 2006, section 256.482, subdivision 8, is amended to read:
113.19 		Subd. 8.Sunset. Notwithstanding section 15.059, subdivision 5, the Council on 
113.20 	Disability shall not sunset until June 30, 2007. 

113.21 	Sec. 7. Minnesota Statutes 2006, section 256.975, subdivision 7, is amended to read:
113.22 		Subd. 7.Consumer information and assistance; senior linkage. (a) The 
113.23 	Minnesota Board on Aging shall operate a statewide information and assistance service 
113.24 	to aid older Minnesotans and their families in making informed choices about long-term 
113.25 	care options and health care benefits. Language services to persons with limited English 
113.26 	language skills may be made available. The service, known as Senior LinkAge Line, must 
113.27 	be available during business hours through a statewide toll-free number and must also 
113.28 	be available through the Internet.
113.29 	(b) The service must assist older adults, caregivers, and providers in accessing 
113.30 	information about choices in long-term care services that are purchased through private 
113.31 	providers or available through public options. The service must:
113.32 	(1) develop a comprehensive database that includes detailed listings in both 
113.33 	consumer- and provider-oriented formats;
114.1 	(2) make the database accessible on the Internet and through other telecommunication 
114.2 	and media-related tools;
114.3 	(3) link callers to interactive long-term care screening tools and make these tools 
114.4 	available through the Internet by integrating the tools with the database;
114.5 	(4) develop community education materials with a focus on planning for long-term 
114.6 	care and evaluating independent living, housing, and service options;
114.7 	(5) conduct an outreach campaign to assist older adults and their caregivers in 
114.8 	finding information on the Internet and through other means of communication;
114.9 	(6) implement a messaging system for overflow callers and respond to these callers 
114.10 	by the next business day;
114.11 	(7) link callers with county human services and other providers to receive more 
114.12 	in-depth assistance and consultation related to long-term care options; and
114.13 	(8) link callers with quality profiles for nursing facilities and other providers 
114.14 	developed by the commissioner of health.;
114.15 	(9) provide information and assistance to inform older adults about reverse 
114.16 	mortgages, including the provisions of sections 47.58, 256B.0913, subdivision 17, and 
114.17 	462A.05, subdivision 42; and
114.18 	(10) incorporate information about housing with services and consumer rights 
114.19 	within the MinnesotaHelp.info network long-term care database to facilitate consumer 
114.20 	comparison of services and costs among housing with services establishments and with 
114.21 	other in-home services and to support financial self-sufficiency as long as possible. 
114.22 	Housing with services establishments and their arranged home care providers shall provide 
114.23 	information to the commissioner of human services including delineation of charges for 
114.24 	housing, meals, supportive services, adapted daily living services, and health-related 
114.25 	services. The commissioner of human services and the commissioner of health shall 
114.26 	align data elements required by section 144G.06, the Uniform Consumer Information 
114.27 	Guide, and this section, to the extent possible. The commissioner of human services shall 
114.28 	provide the data to the Minnesota Board on Aging for inclusion in the MinnesotaHelp.info 
114.29 	network long-term care database.
114.30 	(c) The Minnesota Board on Aging shall conduct an evaluation of the effectiveness 
114.31 	of the statewide information and assistance, and submit this evaluation to the legislature 
114.32 	by December 1, 2002. The evaluation must include an analysis of funding adequacy, gaps 
114.33 	in service delivery, continuity in information between the service and identified linkages, 
114.34 	and potential use of private funding to enhance the service.

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

115.1 	Sec. 8. Minnesota Statutes 2006, section 256B.0621, subdivision 11, is amended to 
115.2 	read:
115.3 		Subd. 11.Data use agreement; notice of relocation assistance. The commissioner 
115.4 	shall execute a data use agreement with the Centers for Medicare and Medicaid Services 
115.5 	to obtain the long-term care minimum data set data to assist residents of nursing facilities 
115.6 	who have establish a process with the Centers for Independent Living that allows a person 
115.7 	residing in a Minnesota nursing facility to receive needed information, consultation, and 
115.8 	assistance from one of the centers about the available community support options that may 
115.9 	enable the person to relocate to the community, if the person: (1) is under the age of 65, 
115.10 	(2) has indicated a desire to live in the community. The commissioner shall in turn enter 
115.11 	into agreements with the Centers for Independent Living to provide information about 
115.12 	assistance for persons who want to move to the community. The commissioner shall work 
115.13 	with the Centers for Independent Living on both the content of the information to be 
115.14 	provided and privacy protections for the individual residents, and (3) has signed a release 
115.15 	of information authorized by the person or the person's appointed legal representative. 
115.16 	The process established under this subdivision shall be coordinated with the long-term 
115.17 	care consultation service activities established in section 256B.0911.

115.18 	Sec. 9. Minnesota Statutes 2006, section 256B.0625, subdivision 18a, is amended to 
115.19 	read:
115.20 		Subd. 18a.Access to medical services. (a) Medical assistance reimbursement for 
115.21 	meals for persons traveling to receive medical care may not exceed $5.50 for breakfast, 
115.22 	$6.50 for lunch, or $8 for dinner.
115.23 	(b) Medical assistance reimbursement for lodging for persons traveling to receive 
115.24 	medical care may not exceed $50 per day unless prior authorized by the local agency.
115.25 	(c) Medical assistance direct mileage reimbursement to the eligible person or the 
115.26 	eligible person's driver may not exceed 20 cents per mile.
115.27 	(d) Regardless of the number of employees that an enrolled health care provider 
115.28 	may have, medical assistance covers sign and oral language interpreter services when 
115.29 	provided by an enrolled health care provider during the course of providing a direct, 
115.30 	person-to-person covered health care service to an enrolled recipient with limited English 
115.31 	proficiency or who has a hearing loss and uses interpreting services.

115.32 	Sec. 10. Minnesota Statutes 2006, section 256B.0911, subdivision 1a, is amended to 
115.33 	read:
115.34 		Subd. 1a.Definitions. For purposes of this section, the following definitions apply:
116.1 	(a) "Long-term care consultation services" means:
116.2 	(1) providing information and education to the general public regarding availability 
116.3 	of the services authorized under this section;
116.4 	(2) an intake process that provides access to the services described in this section;
116.5 	(3) assessment of the health, psychological, and social needs of referred individuals;
116.6 	(4) assistance in identifying services needed to maintain an individual in the least 
116.7 	restrictive environment;
116.8 	(5) providing recommendations on cost-effective community services that are 
116.9 	available to the individual;
116.10 	(6) development of an individual's community support plan, which may include the 
116.11 	use of reverse mortgage payments to pay for services needed to maintain the individual in 
116.12 	the person's home;
116.13 	(7) providing information regarding eligibility for Minnesota health care programs;
116.14 	(8) preadmission screening to determine the need for a nursing facility level of care;
116.15 	(9) preliminary determination of Minnesota health care programs eligibility for 
116.16 	individuals who need a nursing facility level of care, with appropriate referrals for final 
116.17 	determination;
116.18 	(10) providing recommendations for nursing facility placement when there are no 
116.19 	cost-effective community services available; and
116.20 	(11) assistance to transition people back to community settings after facility 
116.21 	admission.
116.22 	(b) "Minnesota health care programs" means the medical assistance program under 
116.23 	chapter 256B and the alternative care program under section 256B.0913.

116.24 	Sec. 11. Minnesota Statutes 2006, section 256B.0911, subdivision 3a, is amended to 
116.25 	read:
116.26 		Subd. 3a.Assessment and support planning. (a) Persons requesting assessment, 
116.27 	services planning, or other assistance intended to support community-based living must be 
116.28 	visited by a long-term care consultation team within ten working days after the date on 
116.29 	which an assessment was requested or recommended. Assessments must be conducted 
116.30 	according to paragraphs (b) to (g).
116.31 	(b) The county may utilize a team of either the social worker or public health nurse, 
116.32 	or both, to conduct the assessment in a face-to-face interview. The consultation team 
116.33 	members must confer regarding the most appropriate care for each individual screened or 
116.34 	assessed.
117.1 	(c) The long-term care consultation team must assess the health and social needs of 
117.2 	the person, using an assessment form provided by the commissioner.
117.3 	(d) The team must conduct the assessment in a face-to-face interview with the 
117.4 	person being assessed and the person's legal representative, if applicable.
117.5 	(e) The team must provide the person, or the person's legal representative, with 
117.6 	written recommendations for facility- or community-based services. The team must 
117.7 	document that the most cost-effective alternatives available were offered to the individual. 
117.8 	For purposes of this requirement, "cost-effective alternatives" means community services 
117.9 	and living arrangements that cost the same as or less than nursing facility care.
117.10 	(f) If the person chooses to use community-based services, the team must provide 
117.11 	the person or the person's legal representative with a written community support plan, 
117.12 	regardless of whether the individual is eligible for Minnesota health care programs. 
117.13 	The person may request assistance in developing a community support plan without 
117.14 	participating in a complete assessment. If the person chooses to obtain a reverse mortgage 
117.15 	under section 47.58 as part of the community support plan, the plan must include a 
117.16 	spending plan for the reverse mortgage payments.
117.17 	(g) The team must give the person receiving assessment or support planning, or 
117.18 	the person's legal representative, materials supplied by the commissioner containing 
117.19 	the following information:
117.20 	(1) the purpose of preadmission screening and assessment;
117.21 	(2) information about Minnesota health care programs and about reverse mortgages, 
117.22 	including the provisions of sections 47.58; 256B.0913, subdivision 17; and 462A.05, 
117.23 	subdivision 42;
117.24 	(3) the person's freedom to accept or reject the recommendations of the team;
117.25 	(4) the person's right to confidentiality under the Minnesota Government Data 
117.26 	Practices Act, chapter 13; and
117.27 	(5) the person's right to appeal the decision regarding the need for nursing facility 
117.28 	level of care or the county's final decisions regarding public programs eligibility according 
117.29 	to section 256.045, subdivision 3. 

117.30 	Sec. 12. Minnesota Statutes 2006, section 256B.0911, subdivision 3b, is amended to 
117.31 	read:
117.32 		Subd. 3b.Transition assistance. (a) A long-term care consultation team shall 
117.33 	provide assistance to persons residing in a nursing facility, hospital, regional treatment 
117.34 	center, or intermediate care facility for persons with developmental disabilities who 
117.35 	request or are referred for assistance. Transition assistance must include assessment, 
118.1 	community support plan development, referrals to Minnesota health care programs, 
118.2 	and referrals to programs that provide assistance with housing. Transition assistance 
118.3 	must also include information about the Centers for Independent Living and about other 
118.4 	organizations that can provide assistance with relocation efforts, and information about 
118.5 	contacting these organizations to obtain their assistance and support. 
118.6 	(b) The county shall develop transition processes with institutional social workers 
118.7 	and discharge planners to ensure that:
118.8 	(1) persons admitted to facilities receive information about transition assistance 
118.9 	that is available;
118.10 	(2) the assessment is completed for persons within ten working days of the date of 
118.11 	request or recommendation for assessment; and
118.12 	(3) there is a plan for transition and follow-up for the individual's return to the 
118.13 	community. The plan must require notification of other local agencies when a person 
118.14 	who may require assistance is screened by one county for admission to a facility located 
118.15 	in another county.
118.16 	(c) If a person who is eligible for a Minnesota health care program is admitted to a 
118.17 	nursing facility, the nursing facility must include a consultation team member or the case 
118.18 	manager in the discharge planning process.

118.19 	Sec. 13. Minnesota Statutes 2006, section 256B.0911, is amended by adding a 
118.20 	subdivision to read:
118.21 		Subd. 3c.Transition to housing with services. (a) Housing with services 
118.22 	establishments offering or providing assisted living under chapter 144G shall inform 
118.23 	all prospective residents of the availability of and contact information for transitional 
118.24 	consultation services under this subdivision prior to executing a lease or contract with the 
118.25 	prospective resident. The purpose of transitional long-term care consultation is to support 
118.26 	persons with current or anticipated long-term care needs in making informed choices 
118.27 	among options that include the most cost-effective and least restrictive settings, and to 
118.28 	delay spenddown to eligibility for publicly funded programs by connecting people to 
118.29 	alternative services in their homes before transition to housing with services.
118.30 	(b) Transitional consultation services are provided as determined by the 
118.31 	commissioner of human services in partnership with county long-term care consultation 
118.32 	units, and the Area Agencies on Aging, and are a combination of telephone-based and 
118.33 	in-person assistance provided under models developed by the commissioner. Transitional 
118.34 	consultation must be provided within five working days of the request of the prospective 
118.35 	resident as follows:
119.1 	(1) the consultation must be provided by a qualified professional as determined by 
119.2 	the commissioner;
119.3 	(2) the consultation must include a review of the prospective resident's reasons for 
119.4 	considering assisted living, the prospective resident's personal goals, a discussion of the 
119.5 	prospective resident's immediate and projected long-term care needs, and alternative 
119.6 	community services or assisted living settings that may meet the prospective resident's 
119.7 	needs; and
119.8 	(3) the prospective resident shall be informed of the availability of long-term care 
119.9 	consultation services described in subdivision 3a that are available at no charge to the 
119.10 	prospective resident to assist the prospective resident in assessment and planning to meet 
119.11 	the prospective resident's long-term care needs.

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

119.13 	Sec. 14. Minnesota Statutes 2006, section 256B.0913, is amended by adding a 
119.14 	subdivision to read:
119.15 		Subd. 17.Services for persons using reverse mortgages. (a) Alternative care 
119.16 	services are available to a person if:
119.17 	(1) the person qualifies for the reverse mortgage incentive program under section 
119.18 	462A.05, subdivision 42, and has received the final payment on a qualifying reverse 
119.19 	mortgage, or the person satisfies the criteria in section 462A.05, subdivision 42, paragraph 
119.20 	(b), clauses (1) to (5), and has otherwise obtained a reverse mortgage and payments from 
119.21 	the reverse mortgage for a period of at least 24 months or in an amount of at least $15,000 
119.22 	are used for services and supports, including basic shelter needs, home maintenance, and 
119.23 	modifications or adaptations, necessary to allow the person to remain in the home as an 
119.24 	alternative to a nursing facility placement; and 
119.25 	(2) the person satisfies the eligibility criteria under this section, other than age, 
119.26 	income, and assets, and verifies that reverse mortgage expenditures were made according 
119.27 	to the spending plan established under section 256B.0911, if one has been established.
119.28 	(b) In addition to the other services provided under this section, a person who 
119.29 	qualifies under this subdivision shall not be assessed a monthly participation fee under 
119.30 	subdivision 12 nor be subject to an estate claim under section 256B.15 for services 
119.31 	received under this section.
119.32 	(c) The commissioner shall require a certification of loan satisfaction or other 
119.33 	documentation that the person qualifies under this subdivision. 

120.1 	Sec. 15. Minnesota Statutes 2006, section 256B.0915, is amended by adding a 
120.2 	subdivision to read:
120.3 		Subd. 3h.Service rate limits; 24-hour customized living services. The payment 
120.4 	rates for 24-hour customized living services is a monthly rate negotiated and authorized by 
120.5 	the lead agency within the parameters established by the commissioner of human services. 
120.6 	The payment agreement must delineate the services that have been customized for each 
120.7 	recipient and specify the amount of each service to be provided. The lead agency shall 
120.8 	ensure that there is a documented need for all services authorized. The lead agency shall 
120.9 	not authorize 24-hour customized living services unless there is a documented need for 
120.10 	24-hour supervision. For purposes of this section, "24-hour supervision" means that the 
120.11 	recipient requires assistance due to needs related to one or more of the following:
120.12 	(1) intermittent assistance with toileting or transferring;
120.13 	(2) cognitive or behavioral issues;
120.14 	(3) a medical condition that requires clinical monitoring; or
120.15 	(4) other conditions or needs as defined by the commissioner of human services. 
120.16 	The lead agency shall ensure that the frequency and mode of supervision of the recipient 
120.17 	and the qualifications of staff providing supervision are described and meet the needs 
120.18 	of the recipient. Customized living services must not include rent or raw food costs. 
120.19 	The negotiated payment rate for 24-hour customized living services must be based on 
120.20 	services to be provided. Negotiated rates must not exceed payment rates for comparable 
120.21 	elderly waiver or medical assistance services and must reflect economies of scale. The 
120.22 	individually negotiated 24-hour customized living payments, in combination with the 
120.23 	payment for other elderly waiver services, including case management, must not exceed 
120.24 	the recipient's community budget cap specified in subdivision 3a.

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

120.26 	Sec. 16. Minnesota Statutes 2006, section 256B.15, is amended by adding a 
120.27 	subdivision to read:
120.28 		Subd. 9.Recovery of alternative care and certain reverse mortgages. The state 
120.29 	and a county agency shall not recover alternative care paid for a person under section 
120.30 	256B.0913, subdivision 17, under this section.

120.31 	Sec. 17. Minnesota Statutes 2006, section 256B.431, subdivision 2e, is amended to 
120.32 	read:
120.33 		Subd. 2e.Contracts for services for ventilator-dependent persons. (a) 
120.34 	The commissioner may negotiate with a nursing facility eligible to receive medical 
121.1 	assistance payments to provide services to a ventilator-dependent person identified by the 
121.2 	commissioner according to criteria developed by the commissioner, including:
121.3 	(1) nursing facility care has been recommended for the person by a preadmission 
121.4 	screening team;
121.5 	(2) the person has been hospitalized and no longer requires inpatient acute care 
121.6 	hospital services; and
121.7 	(3) the commissioner has determined that necessary services for the person cannot 
121.8 	be provided under existing nursing facility rates.
121.9 	(b) The commissioner may negotiate an adjustment to the operating cost payment 
121.10 	rate for a nursing facility with a resident who is ventilator-dependent, for that resident. 
121.11 	The negotiated adjustment must reflect only the actual additional cost of meeting the 
121.12 	specialized care needs of a ventilator-dependent person identified by the commissioner 
121.13 	for whom necessary services cannot be provided under existing nursing facility rates and 
121.14 	which are not otherwise covered under Minnesota Rules, parts 9549.0010 to 9549.0080 or 
121.15 	9505.0170 to 9505.0475. For persons who are initially admitted to a nursing facility before 
121.16 	July 1, 2001, and have their payment rate under this subdivision negotiated after July 1, 
121.17 	2001, the negotiated payment rate must not exceed 200 percent of the highest multiple 
121.18 	bedroom payment rate for the facility, as initially established by the commissioner for the 
121.19 	rate year for case mix classification K; or, upon implementation of the RUG's-based case 
121.20 	mix system, 200 percent of the highest RUG's rate. For persons initially admitted to a 
121.21 	nursing facility on or after July 1, 2001, the negotiated payment rate must not exceed 300 
121.22 	percent of the facility's multiple bedroom payment rate for case mix classification K; or, 
121.23 	upon implementation of the RUG's-based case mix system, 300 percent of the highest 
121.24 	RUG's rate. The negotiated adjustment shall not affect the payment rate charged to private 
121.25 	paying residents under the provisions of section   256B.48, subdivision 1. 
121.26 	(c) Effective July 1, 2007, the operating payment rate for residents determined 
121.27 	eligible under paragraph (a) in a unit of at least ten beds dedicated to the care of 
121.28 	ventilator-dependent persons in partnership with Mayo Health Systems at a nursing 
121.29 	facility in Waseca County that was licensed for 70 beds on February 7, 2007, or in a unit 
121.30 	of at least four beds dedicated to the care of ventilator-dependent persons at a nursing 
121.31 	facility in Blue Earth County that was licensed for 100 beds on February 7, 2007, and 
121.32 	reimbursed under this section or section 256B.434, or section 256B.441, shall be 300 
121.33 	percent of the facility's highest RUG's rate. The rate in this paragraph shall take effect 
121.34 	upon the opening of the unit.

122.1 	Sec. 18. Minnesota Statutes 2006, section 256B.431, subdivision 41, is amended to 
122.2 	read:
122.3 		Subd. 41.Rate increases for October 1, 2005, and October 1, 2006. (a) For the 
122.4 	rate period beginning October 1, 2005, the commissioner shall make available to each 
122.5 	nursing facility reimbursed under this section or section 256B.434 an adjustment equal to 
122.6 	2.2553 percent of the total operating payment rate, and for the rate year beginning October 
122.7 	1, 2006, the commissioner shall make available to each nursing facility reimbursed 
122.8 	under this section or section 256B.434 an adjustment equal to 1.2553 percent of the total 
122.9 	operating payment rate.
122.10 	(b) 75 percent of the money resulting from the rate adjustment under paragraph (a) 
122.11 	must be used to increase wages and benefits and pay associated costs for all employees, 
122.12 	except management fees, the administrator, and central office staff. Except as provided 
122.13 	in paragraph (c), 75 percent of the money received by a facility as a result of the rate 
122.14 	adjustment provided in paragraph (a) must be used only for wage, benefit, and staff 
122.15 	increases implemented on or after the effective date of the rate increase each year, and 
122.16 	must not be used for increases implemented prior to that date.
122.17 	(c) With respect only to the October 1, 2005, rate increase, a nursing facility that 
122.18 	incurred costs for salary and employee benefit increases first provided after July 1, 2003, 
122.19 	may count those costs towards the amount required to be spent on salaries and benefits 
122.20 	under paragraph (b). These costs must be reported to the commissioner in the form and 
122.21 	manner specified by the commissioner.
122.22 	(d) Nursing facilities may apply for the portion of the rate adjustment under 
122.23 	paragraph (a) for employee wages and benefits and associated costs. The application 
122.24 	must be made to the commissioner and contain a plan by which the nursing facility 
122.25 	will distribute the funds according to paragraph (b). For nursing facilities in which the 
122.26 	employees are represented by an exclusive bargaining representative, an agreement 
122.27 	negotiated and agreed to by the employer and the exclusive bargaining representative 
122.28 	constitutes the plan. A negotiated agreement may constitute the plan only if the agreement 
122.29 	is finalized after the date of enactment of all increases for the rate year and signed by both 
122.30 	parties prior to submission to the commissioner. The commissioner shall review the 
122.31 	plan to ensure that the rate adjustments are used as provided in paragraph (b). To be 
122.32 	eligible, a facility must submit its distribution plan by March 31, 2006, and March 31, 
122.33 	2007, respectively. The commissioner may approve distribution plans on or before June 
122.34 	30, 2006, and June 30, 2007, respectively. The commissioner may waive the deadlines in 
122.35 	this paragraph under extraordinary circumstances, either retroactively or prospectively, to 
122.36 	be determined at the sole discretion of the commissioner. If a facility's distribution plan is 
123.1 	effective after the first day of the applicable rate period that the funds are available, the 
123.2 	rate adjustments are effective the same date as the facility's plan.
123.3 	(e) A copy of the approved distribution plan must be made available to all employees 
123.4 	by giving each employee a copy or by posting a copy in an area of the nursing facility 
123.5 	to which all employees have access. If an employee does not receive the wage and 
123.6 	benefit adjustment described in the facility's approved plan and is unable to resolve the 
123.7 	problem with the facility's management or through the employee's union representative, 
123.8 	the employee may contact the commissioner at an address or telephone number provided 
123.9 	by the commissioner and included in the approved plan.

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

123.12 	Sec. 19. Minnesota Statutes 2006, section 256B.434, subdivision 4, is amended to read:
123.13 		Subd. 4.Alternate rates for nursing facilities. (a) For nursing facilities which 
123.14 	have their payment rates determined under this section rather than section 256B.431, the 
123.15 	commissioner shall establish a rate under this subdivision. The nursing facility must enter 
123.16 	into a written contract with the commissioner.
123.17 	(b) A nursing facility's case mix payment rate for the first rate year of a facility's 
123.18 	contract under this section is the payment rate the facility would have received under 
123.19 	section 256B.431.
123.20 	(c) A nursing facility's case mix payment rates for the second and subsequent years 
123.21 	of a facility's contract under this section are the previous rate year's contract payment 
123.22 	rates plus an inflation adjustment and, for facilities reimbursed under this section or 
123.23 	section 256B.431, an adjustment to include the cost of any increase in Health Department 
123.24 	licensing fees for the facility taking effect on or after July 1, 2001. The index for the 
123.25 	inflation adjustment must be based on the change in the Consumer Price Index-All Items 
123.26 	(United States City average) (CPI-U) forecasted by the commissioner of finance's national 
123.27 	economic consultant, as forecasted in the fourth quarter of the calendar year preceding 
123.28 	the rate year. The inflation adjustment must be based on the 12-month period from the 
123.29 	midpoint of the previous rate year to the midpoint of the rate year for which the rate 
123.30 	is being determined. For the rate years beginning on July 1, 1999, July 1, 2000, July 
123.31 	1, 2001, July 1, 2002, July 1, 2003, July 1, 2004, July 1, 2005, July 1, 2006, July 1, 
123.32 	2007, and July 1, 2008, July 1, 2009, and July 1, 2010, this paragraph shall apply only 
123.33 	to the property-related payment rate, except that adjustments to include the cost of any 
123.34 	increase in Health Department licensing fees taking effect on or after July 1, 2001, shall 
123.35 	be provided. Beginning in 2005, adjustment to the property payment rate under this 
124.1 	section and section 256B.431 shall be effective on October 1. In determining the amount 
124.2 	of the property-related payment rate adjustment under this paragraph, the commissioner 
124.3 	shall determine the proportion of the facility's rates that are property-related based on the 
124.4 	facility's most recent cost report. 
124.5 	(d) The commissioner shall develop additional incentive-based payments of up to 
124.6 	five percent above a facility's operating payment rate for achieving outcomes specified 
124.7 	in a contract. The commissioner may solicit contract amendments and implement those 
124.8 	which, on a competitive basis, best meet the state's policy objectives. The commissioner 
124.9 	shall limit the amount of any incentive payment and the number of contract amendments 
124.10 	under this paragraph to operate the incentive payments within funds appropriated for this 
124.11 	purpose. The contract amendments may specify various levels of payment for various 
124.12 	levels of performance. Incentive payments to facilities under this paragraph may be in the 
124.13 	form of time-limited rate adjustments or onetime supplemental payments. In establishing 
124.14 	the specified outcomes and related criteria, the commissioner shall consider the following 
124.15 	state policy objectives:
124.16 	(1) successful diversion or discharge of residents to the residents' prior home or other 
124.17 	community-based alternatives;
124.18 	(2) adoption of new technology to improve quality or efficiency; 
124.19 	(3) improved quality as measured in the Nursing Home Report Card; 
124.20 	(4) reduced acute care costs; and
124.21 	(5) any additional outcomes proposed by a nursing facility that the commissioner 
124.22 	finds desirable.

124.23 	Sec. 20. Minnesota Statutes 2006, section 256B.434, is amended by adding a 
124.24 	subdivision to read:
124.25 		Subd. 19.Nursing facility rate increases beginning October 1, 2007.  (a) For the 
124.26 	rate year beginning October 1, 2007, the commissioner shall make available to each 
124.27 	nursing facility reimbursed under this section operating payment rate adjustments equal 
124.28 	to 2.70 percent of the operating payment rates in effect on September 30, 2007. This 
124.29 	subdivision shall not apply to a facility reimbursed under section 256B.431, subdivision 
124.30 	43.
124.31 	(b) Seventy-five percent of the money resulting from the rate adjustment under 
124.32 	paragraph (a) must be used for increases in compensation-related costs for employees 
124.33 	directly employed by the nursing facility on or after the effective date of the rate 
124.34 	adjustment, except:
124.35 	(1) the administrator;
125.1 	(2) persons employed in the central office of a corporation that has an ownership 
125.2 	interest in the nursing facility or exercises control over the nursing facility; and 
125.3 	(3) persons paid by the nursing facility under a management contract.
125.4 	(c) Sixty-seven percent of the money available under paragraph (b) must be used for 
125.5 	wage increases for all employees directly employed by the nursing facility on or after the 
125.6 	effective date of the rate adjustment, except those listed in paragraph (b), clauses (1) to 
125.7 	(3). The wage adjustment that employees receive under this paragraph must be paid as an 
125.8 	equal hourly wage increase for all eligible employees. This paragraph shall not apply to:
125.9 	(1) employees eligible for a Taft-Hartley insurance plan established under United 
125.10 	States Code, title 29, section 186(c)(5); or 
125.11 	(2) public employees.
125.12 	(d) The commissioner shall allow as compensation-related costs all costs for:
125.13 	(1) wages and salaries;
125.14 	(2) FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers' 
125.15 	compensation;
125.16 	(3) the employer's share of health and dental insurance, life insurance, disability 
125.17 	insurance, long-term care insurance, uniform allowance, and pensions; and
125.18 	(4) other benefits provided, subject to the approval of the commissioner.
125.19 	(e) The portion of the rate adjustment under paragraph (a) that is not subject to the 
125.20 	requirements in paragraphs (b) and (c) shall be provided to nursing facilities effective 
125.21 	October 1, 2007.
125.22 	(f) Nursing facilities may apply for the portion of the rate adjustment under 
125.23 	paragraph (a) that is subject to the requirements in paragraphs (b) and (c). The application 
125.24 	must be submitted to the commissioner within six months of the effective date of the 
125.25 	rate adjustment, and the nursing facility must provide additional information required 
125.26 	by the commissioner within nine months of the effective date of the rate adjustment. 
125.27 	The commissioner must respond to all applications within three weeks of receipt. 
125.28 	The commissioner may waive the deadlines in this paragraph under extraordinary 
125.29 	circumstances, to be determined at the sole discretion of the commissioner. The 
125.30 	application must contain:
125.31 	(1) an estimate of the amounts of money that must be used as specified in paragraphs 
125.32 	(b) and (c);
125.33 	(2) a detailed distribution plan specifying the allowable compensation-related and 
125.34 	wage increases the nursing facility will implement to use the funds available in clause (1);
125.35 	(3) a description of how the nursing facility will notify eligible employees of 
125.36 	the contents of the approved application, which must provide for giving each eligible 
126.1 	employee a copy of the approved application, excluding the information required in clause 
126.2 	(1), or posting a copy of the approved application, excluding the information required in 
126.3 	clause (1), for a period of at least six weeks in an area of the nursing facility to which all 
126.4 	eligible employees have access; and
126.5 	(4) instructions for employees who believe they have not received the 
126.6 	compensation-related or wage increases specified in clause (2), as approved by the 
126.7 	commissioner, and which must include a mailing address, e-mail address, and the 
126.8 	telephone number that may be used by the employee to contact the commissioner or the 
126.9 	commissioner's representative.
126.10 	(g) The commissioner shall ensure that cost increases in distribution plans under 
126.11 	paragraph (f), clause (2), that may be included in approved applications, comply with the 
126.12 	following requirements:
126.13 	(1) costs to be incurred during the applicable rate year resulting from wage and 
126.14 	salary increases implemented prior to the first day of the nursing facility's payroll period 
126.15 	that includes October 1, 2007, shall be allowed if they were not used in a prior year's 
126.16 	application;
126.17 	(2) a portion of the costs resulting from tenure-related wage or salary increases 
126.18 	may be considered to be allowable wage increases, according to formulas that the 
126.19 	commissioner shall provide, where employee retention is above the average statewide 
126.20 	rate of retention of direct care employees;
126.21 	(3) the annualized amount of increases in costs for the employer's share of health 
126.22 	and dental insurance, life insurance, disability insurance, and workers' compensation 
126.23 	shall be allowable compensation-related increases if they are effective on or after April 
126.24 	1, 2007, and prior to April 1, 2008; and 
126.25 	(4) for nursing facilities in which employees are represented by an exclusive 
126.26 	bargaining representative, the commissioner shall approve the application only upon 
126.27 	receipt of a letter of acceptance of the distribution plan, in regard to members of the 
126.28 	bargaining unit, signed by the exclusive bargaining agent and dated after enactment of 
126.29 	this subdivision. Upon receipt of the letter of acceptance, the commissioner shall deem 
126.30 	all requirements of this section as having been met in regard to the members of the 
126.31 	bargaining unit.
126.32 	(h) The commissioner shall review applications received under paragraph (f) and 
126.33 	shall provide the portion of the rate adjustment under paragraphs (b) and (c) if the 
126.34 	requirements of this subdivision have been met. The rate adjustment shall be effective 
126.35 	October 1 of each year. Notwithstanding paragraph (a), if the approved application 
127.1 	distributes less money than is available, the amount of the rate adjustment shall be reduced 
127.2 	so that the amount of money made available is equal to the amount to be distributed.

127.3 	Sec. 21. Minnesota Statutes 2006, section 256B.437, is amended by adding a 
127.4 	subdivision to read:
127.5 		Subd. 10.Big Stone County rate adjustment.  Notwithstanding the  requirements 
127.6 	of this section, the commissioner may approve a planned closure rate adjustment in Big 
127.7 	Stone County for an eight-bed facility in Clinton for reassignment to a 50-bed facility in 
127.8 	Graceville. The adjustment shall be calculated according to subdivisions 3 and 6.

127.9 	Sec. 22. Minnesota Statutes 2006, section 256B.441, subdivision 1, is amended to read:
127.10 		Subdivision 1.Rate determination Rebasing of nursing facility operating cost 
127.11 	payment rates. (a) The commissioner shall establish a value-based nursing facility 
127.12 	reimbursement system which will provide facility-specific, prospective rates for nursing 
127.13 	facilities participating in the medical assistance program. The rates shall be determined 
127.14 	using an annual statistical and cost report filed by each nursing facility. The total payment 
127.15 	rate shall be composed of four rate components: direct care services, support services, 
127.16 	external fixed, and property-related rate components. The payment rate shall be derived 
127.17 	from statistical measures of actual costs incurred in facility operation of nursing facilities. 
127.18 	From this cost basis, the components of the total payment rate shall be adjusted for quality 
127.19 	of services provided, recognition of staffing levels, geographic variation in labor costs, and 
127.20 	resident acuity. The commissioner shall rebase nursing facility operating cost payment 
127.21 	rates to align payments to facilities with the cost of providing care. The rebased operating 
127.22 	cost payment rates shall be calculated using the statistical and cost report filed by each 
127.23 	nursing facility for the report period ending one year prior to the rate year.
127.24 	(b) Rates shall be rebased annually. The new operating cost payment rates based on 
127.25 	this section shall take effect beginning with the rate year beginning October 1, 2008, and 
127.26 	shall be phased in over five rate years through October 1, 2012.
127.27 	(c) Operating cost payment rates shall be rebased on October 1, 2013, and every 
127.28 	two years after that date.
127.29 	(d) Each cost reporting year shall begin on October 1 and end on the following 
127.30 	September 30. Beginning in 2006, a statistical and cost report shall be filed by each 
127.31 	nursing facility by January 15. Notice of rates shall be distributed by August 15 and the 
127.32 	rates shall go into effect on October 1 for one year.
127.33 	(c) The commissioner shall begin to phase in the new reimbursement system 
127.34 	beginning October 1, 2007. Full phase-in shall be completed by October 1, 2011.

128.1 	Sec. 23. Minnesota Statutes 2006, section 256B.441, subdivision 2, is amended to read:
128.2 		Subd. 2.Definitions. For purposes of this section, the terms in subdivisions 3 to 
128.3 	42 42a  have the meanings given unless otherwise provided for in this section.

128.4 	Sec. 24. Minnesota Statutes 2006, section 256B.441, subdivision 5, is amended to read:
128.5 		Subd. 5.Administrative costs. "Administrative costs" means the direct costs for 
128.6 	administering the overall activities of the nursing home. These costs include salaries and 
128.7 	wages of the administrator, assistant administrator, business office employees, security 
128.8 	guards, and associated fringe benefits and payroll taxes, fees, contracts, or purchases 
128.9 	related to business office functions, licenses, and permits except as provided in the 
128.10 	external fixed costs category, employee recognition, travel including meals and lodging, 
128.11 	training, voice and data communication or transmission, office supplies, liability insurance 
128.12 	and other forms of insurance not designated to other areas, personnel recruitment, legal 
128.13 	services, accounting services, management or business consultants, data processing, 
128.14 	information technology, Web site, central or home office costs, business meetings and 
128.15 	seminars, postage, fees for professional organizations, subscriptions, security services, 
128.16 	advertising, board of director's fees, working capital interest expense, and bad debts and 
128.17 	bad debt collection fees.

128.18 	Sec. 25. Minnesota Statutes 2006, section 256B.441, subdivision 6, is amended to read:
128.19 		Subd. 6.Allowed costs. "Allowed costs" means the amounts reported by the facility 
128.20 	which are necessary for the operation of the facility and the care of residents and which 
128.21 	are reviewed by the department for accuracy, reasonableness, and compliance with this 
128.22 	section and generally accepted accounting principles. All references to costs in this section 
128.23 	shall be assumed to refer to allowed costs.

128.24 	Sec. 26. Minnesota Statutes 2006, section 256B.441, subdivision 10, is amended to 
128.25 	read:
128.26 		Subd. 10.Dietary costs. "Dietary costs" means the costs for the salaries and wages 
128.27 	of the dietary supervisor, dietitians, chefs, cooks, dishwashers, and other employees 
128.28 	assigned to the kitchen and dining room, and associated fringe benefits and payroll 
128.29 	taxes. Dietary costs also includes the salaries or fees of dietary consultants, direct costs 
128.30 	of raw food (both normal and special diet food), dietary supplies, and food preparation 
128.31 	and serving. Also included are special dietary supplements used for tube feeding or oral 
128.32 	feeding, such as elemental high nitrogen diet, even if written as a prescription item by a 
128.33 	physician.

129.1 	Sec. 27. Minnesota Statutes 2006, section 256B.441, subdivision 11, is amended to 
129.2 	read:
129.3 		Subd. 11.Direct care costs category. "Direct care costs category" "Direct care 
129.4 	costs" means costs for nursing services, activities, and social services the wages of nursing 
129.5 	administration, staff education, direct care registered nurses, licensed practical nurses, 
129.6 	certified nursing assistants, trained medication aides, and associated fringe benefits and 
129.7 	payroll taxes; services from a supplemental nursing services agency; supplies that are 
129.8 	stocked at nursing stations or on the floor and distributed or used individually, including, 
129.9 	but not limited to: alcohol, applicators, cotton balls, incontinence pads, disposable ice 
129.10 	bags, dressings, bandages, water pitchers, tongue depressors, disposable gloves, enemas, 
129.11 	enema equipment, soap, medication cups, diapers, plastic waste bags, sanitary products, 
129.12 	thermometers, hypodermic needles and syringes, clinical reagents or similar diagnostic 
129.13 	agents, drugs that are not paid on a separate fee schedule by the medical assistance 
129.14 	program or any other payer, and technology related to the provision of nursing care to 
129.15 	residents, such as electronic charting systems.

129.16 	Sec. 28. Minnesota Statutes 2006, section 256B.441, subdivision 13, is amended to 
129.17 	read:
129.18 		Subd. 13.External fixed costs category. "External fixed costs category" "External 
129.19 	fixed costs"  means costs related to the nursing home surcharge under section 256.9657, 
129.20 	subdivision 1; licensure fees under section 144.122; long-term care consultation fees 
129.21 	under section 256B.0911, subdivision 6; family advisory council fee under section 
129.22 	 144A.33; scholarships under section 256B.431, subdivision 36; planned closure rate 
129.23 	adjustments under section 256B.436 or256B.437; or single-bed room incentives under 
129.24 	section 256B.431, subdivision 42; property taxes and property insurance; and PERA.

129.25 	Sec. 29. Minnesota Statutes 2006, section 256B.441, subdivision 14, is amended to 
129.26 	read:
129.27 		Subd. 14.Facility average case mix index. "Facility average case mix index" or 
129.28 	"CMI" means a numerical value score that describes the relative resource use for all 
129.29 	residents within the groups under the resource utilization group (RUG-III) classification 
129.30 	system prescribed by the commissioner based on an assessment of each resident. The 
129.31 	facility average CMI shall be computed as the standardized days divided by total days for 
129.32 	all residents in the facility. The RUG's weights used in this section shall be as follows 
129.33 	for each RUG's class: SE3 1.605; SE2 1.247; SE1 1.081; RAD 1.509; RAC 1.259; RAB 
129.34 	1.109; RAA 0.957; SSC 1.453; SSB 1.254; SSA 1.047; CC2 1.292; CC1 1.200; CB2 
130.1 	1.086; CB1 1.017; CA2 0.908; CA1 0.834; IB2 0.877; IB1 0.817; IA2 0.720; IA1 0.676; 
130.2 	BB2 0.956; BB1 0.885; BA2 0.716; BA1 0.673; PE2 1.199; PE1 1.104; PD2 1.023; 
130.3 	PD1 0.948; PC2 0.926; PC1 0.860; PB2 0.786; PB1 0.734; PA2 0.691; PA1 0.651; BC1 
130.4 	0.651; and DDF 1.000.

130.5 	Sec. 30. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
130.6 	subdivision to read:
130.7 		Subd. 14a.Facility type groups. Facilities shall be classified into two groups, 
130.8 	called "facility type groups," which shall consist of:
130.9 	(1) C&NC/R80: facilities that are hospital-attached, or are licensed under Minnesota 
130.10 	Rules, parts 9570.2000 to 9570.3400; and 
130.11 	(2) freestanding: all other facilities.

130.12 	Sec. 31. Minnesota Statutes 2006, section 256B.441, subdivision 17, is amended to 
130.13 	read:
130.14 		Subd. 17.Fringe benefit costs. "Fringe benefit costs" means the costs for group 
130.15 	life, health, dental, workers' compensation, and other employee insurances and pension, 
130.16 	profit-sharing, and retirement plans for which the employer pays all or a portion of the 
130.17 	costs and that are available to at least all employees who work at least 20 hours per week.

130.18 	Sec. 32. Minnesota Statutes 2006, section 256B.441, subdivision 20, is amended to 
130.19 	read:
130.20 		Subd. 20.Housekeeping costs. "Housekeeping costs" means the costs for the 
130.21 	salaries and wages of the housekeeping supervisor, housekeepers, and other cleaning 
130.22 	employees and associated fringe benefits and payroll taxes. It also includes the cost of 
130.23 	housekeeping supplies, including, but not limited to,  cleaning and lavatory supplies and 
130.24 	contract services.

130.25 	Sec. 33. Minnesota Statutes 2006, section 256B.441, subdivision 24, is amended to 
130.26 	read:
130.27 		Subd. 24.Maintenance and plant operations costs. "Maintenance and plant 
130.28 	operations costs" means the costs for the salaries and wages of the maintenance supervisor, 
130.29 	engineers, heating-plant employees, and other maintenance employees and associated 
130.30 	fringe benefits and payroll taxes. It also includes direct costs for maintenance and 
130.31 	operation of the building and grounds, including, but not limited to,  fuel, electricity, 
130.32 	medical waste and garbage removal, water, sewer, supplies, tools, and repairs.

131.1 	Sec. 34. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
131.2 	subdivision to read:
131.3 		Subd. 28a.Other direct care costs. "Other direct care costs" means the costs 
131.4 	for the salaries and wages and associated fringe benefits and payroll taxes of mental 
131.5 	health workers, religious personnel, and other direct care employees not specified in 
131.6 	the definition of direct care costs. 

131.7 	Sec. 35. Minnesota Statutes 2006, section 256B.441, subdivision 30, is amended to 
131.8 	read:
131.9 		Subd. 30.Peer groups. Facilities shall be classified into three groups, called "peer 
131.10 	groups," which by county. The groups  shall consist of:
131.11 	(1) C&NC/Short Stay/R80 - facilities that have three or more admissions per bed 
131.12 	per year, are hospital-attached, or are licensed under Minnesota Rules, parts 9570.2000 
131.13 	to 9570.3600 group one: facilities in Anoka, Benton, Carlton, Carver, Chisago, Dakota, 
131.14 	Dodge, Goodhue, Hennepin, Isanti, Mille Lacs, Morrison, Olmsted, Ramsey, Rice, Scott, 
131.15 	Sherburne, St. Louis, Stearns, Steele, Wabasha, Washington, Winona, or Wright County;
131.16 	(2) boarding care homes - facilities that have more than 50 percent of their beds 
131.17 	licensed as boarding care homes group two: facilities in Aitkin, Beltrami, Blue Earth, 
131.18 	Brown, Cass, Clay, Cook, Crow Wing, Faribault, Fillmore, Freeborn, Houston, Hubbard, 
131.19 	Itasca, Kanabec, Koochiching, Lake, Lake of the Woods, Le Sueur, Martin, McLeod, 
131.20 	Meeker, Mower, Nicollet, Norman, Pine, Roseau, Sibley, Todd, Wadena, Waseca, 
131.21 	Watonwan, or Wilkin County; and
131.22 	(3) standard - all other facilities group three: facilities in all other counties.

131.23 	Sec. 36. Minnesota Statutes 2006, section 256B.441, subdivision 31, is amended to 
131.24 	read:
131.25 		Subd. 31.Prior rate-setting method system operating cost payment rate. "Prior 
131.26 	rate-setting method" "Prior system operating cost payment rate"  means the operating cost 
131.27 	payment rate determination process in effect prior to October 1, 2006 on September 30, 
131.28 	2008, under Minnesota Rules and Minnesota Statutes, not including planned closure rate 
131.29 	adjustments under section 256B.436 or 256B.437, or single bed room incentives under 
131.30 	section 256B.431, subdivision 42.

131.31 	Sec. 37. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
131.32 	subdivision to read:
132.1 		Subd. 33a.Raw food costs. "Raw food costs" means the cost of food provided to 
132.2 	nursing facility residents. Also included are special dietary supplements used for tube 
132.3 	feeding or oral feeding, such as elemental high nitrogen diet.

132.4 	Sec. 38. Minnesota Statutes 2006, section 256B.441, subdivision 34, is amended to 
132.5 	read:
132.6 		Subd. 34.Related organization. "Related organization" means a person that 
132.7 	furnishes goods or services to a nursing facility and that is a close relative of a nursing 
132.8 	facility, an affiliate of a nursing facility, a close relative of an affiliate of a nursing facility, 
132.9 	or an affiliate of a close relative of an affiliate of a nursing facility. As used in this 
132.10 	subdivision, paragraphs (a) to (d) apply:
132.11 	(a) "Affiliate" means a person that directly, or indirectly through one or more 
132.12 	intermediaries, controls or is controlled by, or is under common control with another 
132.13 	person.
132.14 	(b) "Person" means an individual, a corporation, a partnership, an association, a 
132.15 	trust, an unincorporated organization, or a government or political subdivision.
132.16 	(c) "Close relative of an affiliate of a nursing facility" means an individual whose 
132.17 	relationship by blood, marriage, or adoption to an individual who is an affiliate of a 
132.18 	nursing facility is no more remote than first cousin.
132.19 	(d) "Control" including the terms "controlling," "controlled by," and "under common 
132.20 	control with" means the possession, direct or indirect, of the power to direct or cause the 
132.21 	direction of the management, operations, or policies of a person, whether through the 
132.22 	ownership of voting securities, by contract, or otherwise, or to influence in any manner 
132.23 	other than through an arms length, legal transaction.

132.24 	Sec. 39. Minnesota Statutes 2006, section 256B.441, subdivision 38, is amended to 
132.25 	read:
132.26 		Subd. 38.Social services costs. "Social services costs" means the costs for the 
132.27 	salaries and wages of the supervisor and other social work employees, associated fringe 
132.28 	benefits and payroll taxes, supplies, services, and consultants. This category includes the 
132.29 	cost of those employees who manage and process admission to the nursing facility.

132.30 	Sec. 40. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
132.31 	subdivision to read:
133.1 		Subd. 42a.Therapy costs. "Therapy costs" means any costs related to medical 
133.2 	assistance therapy services provided to residents that are not billed separately from the 
133.3 	daily operating rate.

133.4 	Sec. 41. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
133.5 	subdivision to read:
133.6 		Subd. 46a.Calculation of quality add-on for October 1, 2007. (a) The payment 
133.7 	rate for the rate year beginning October 1, 2007, for the quality add-on, is a variable 
133.8 	amount based on each facility's quality score. For the rate year, the maximum quality 
133.9 	add-on is .3 percent of the operating payment rate in effect on September 30, 2007. The 
133.10 	commissioner shall determine the quality add-on for each facility according to paragraphs 
133.11 	(b) to (d).
133.12 	(b) For each facility, the commissioner shall determine the operating payment rate 
133.13 	in effect on September 30, 2007.
133.14 	(c) For each facility, the commissioner shall determine a ratio of the quality score of 
133.15 	the facility determined in subdivision 44, subtract 40, and then divide by 60. If this value 
133.16 	is less than zero, the commissioner shall use the value zero.
133.17 	(d) For each facility, the quality add-on is the value determined in paragraph (b), 
133.18 	multiplied by the value determined in paragraph (c), multiplied by .3 percent.

133.19 	Sec. 42. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
133.20 	subdivision to read:
133.21 		Subd. 48.Calculation of operating per diems. The direct care per diem for 
133.22 	each facility shall be the facility's direct care costs divided by its standardized days. 
133.23 	The other care-related per diem shall be the sum of the facility's activities costs, other 
133.24 	direct care costs, raw food costs, therapy costs, and social services costs, divided by the 
133.25 	facility's resident days. The other operating per diem shall be the sum of the facility's 
133.26 	administrative costs, dietary costs, housekeeping costs, laundry costs, and maintenance 
133.27 	and plant operations costs divided by the facility's resident days.

133.28 	Sec. 43. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
133.29 	subdivision to read:
133.30 		Subd. 49.Determination of total care-related per diem. The total care-related 
133.31 	per diem for each facility shall be the sum of the direct care per diem and the other 
133.32 	care-related per diem.

134.1 	Sec. 44. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
134.2 	subdivision to read:
134.3 		Subd. 50.Determination of total care-related limit. The limit on the total 
134.4 	care-related per diem shall be determined for each peer group and facility type group 
134.5 	combination. A facility's total care-related per diems shall be limited to 120 percent of the 
134.6 	median for the facility's peer and facility type group. The facility-specific direct care costs 
134.7 	used in making this comparison and in the calculation of the median shall be based on a 
134.8 	RUG's weight of 1.00. A facility that is above that limit shall have its total care-related per 
134.9 	diem reduced to the limit. If a reduction of the total care-related per diem is necessary 
134.10 	because of this limit, the reduction shall be made proportionally to both the direct care per 
134.11 	diem and the other care-related per diem.

134.12 	Sec. 45. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
134.13 	subdivision to read:
134.14 		Subd. 51.Determination of other operating limit. The limit on the other operating 
134.15 	per diem shall be determined for each peer group. A facility's other operating per diem 
134.16 	shall be limited to 105 percent of the median for its peer group. A facility that is above 
134.17 	that limit shall have its other operating per diem reduced to the limit.

134.18 	Sec. 46. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
134.19 	subdivision to read:
134.20 		Subd. 52.Determination of efficiency incentive. Each facility shall be eligible 
134.21 	for an efficiency incentive based on its other operating per diem. A facility with an other 
134.22 	operating per diem that exceeds the limit in subdivision 51 shall receive no efficiency 
134.23 	incentive. All other facilities shall receive an incentive calculated as 50 percent times the 
134.24 	difference between the facility's other operating per diem and its other operating per diem 
134.25 	limit, up to a maximum incentive of $3.

134.26 	Sec. 47. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
134.27 	subdivision to read:
134.28 		Subd. 53.Calculation of payment rate for external fixed costs. The commissioner 
134.29 	shall calculate a payment rate for external fixed costs.
134.30 	(a) For a facility licensed as a nursing home, the portion related to section 256.9657 
134.31 	shall be equal to $8.86. For a facility licensed as both a nursing home and a boarding care 
134.32 	home, the portion related to section 256.9657 shall be equal to $8.86 multiplied by the 
134.33 	result of its number of nursing home beds divided by its total number of licensed beds.
135.1 	(b) The portion related to the licensure fee under section 144.122, paragraph (d), 
135.2 	shall be the amount of the fee divided by actual resident days.
135.3 	(c) The portion related to scholarships shall be determined under section 256B.431, 
135.4 	subdivision 36.
135.5 	(d) The portion related to long-term care consultation shall be determined according 
135.6 	to section 256B.0911, subdivision 6.
135.7 	(e) The portion related to development and education of resident and family advisory 
135.8 	councils under section 144A.33 shall be $5 divided by 365.
135.9 	(f) The portion related to planned closure rate adjustments shall be as determined 
135.10 	under sections 256B.436 and 256B.437, subdivision 6.
135.11 	(g) The portions related to property insurance, real estate taxes, special assessments, 
135.12 	and payments made in lieu of real estate taxes directly identified or allocated to the nursing 
135.13 	facility shall be the actual amounts divided by actual resident days.
135.14 	(h) The portion related to the Public Employees Retirement Association shall be 
135.15 	actual costs divided by resident days.
135.16 	(i) The single bed room incentives shall be as determined under section 256B.431, 
135.17 	subdivision 42.
135.18 	(j) The payment rate for external fixed costs shall be the sum of the amounts in 
135.19 	paragraphs (a) to (i).

135.20 	Sec. 48. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
135.21 	subdivision to read:
135.22 		Subd. 54.Determination of total payment rates. In rate years when rates are 
135.23 	rebased, the total payment rate for a RUG's weight of 1.00 shall be the sum of the total 
135.24 	care-related payment rate, other operating payment rate, efficiency incentive, external 
135.25 	fixed cost rate, and the property rate determined under section 256B.434. To determine 
135.26 	a total payment rate for each RUG's level, the total care-related payment rate shall be 
135.27 	divided into the direct care payment rate and the other care-related payment rate, and the 
135.28 	direct care payment rate multiplied by the RUG's weight for each RUG's level using the 
135.29 	weights in subdivision 14.

135.30 	Sec. 49. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
135.31 	subdivision to read:
135.32 		Subd. 55.Phase-in of rebased operating cost payment rates. For the rate years 
135.33 	beginning October 1, 2008, to October 1, 2012, the operating cost payment rate calculated 
135.34 	under this section shall be phased in by blending the operating cost rate with the operating 
136.1 	cost payment rate determined under section 256B.434. For the rate year beginning 
136.2 	October 1, 2008, the operating cost payment rate for each facility shall be 23.6 percent 
136.3 	of the operating cost payment rate from this section, and 76.4 percent of the operating 
136.4 	cost payment rate from section 256B.434. For the rate year beginning October 1, 2009, 
136.5 	the operating cost payment rate for each facility shall be 40 percent of the operating 
136.6 	cost payment rate from this section, and 60 percent of the operating cost payment rate 
136.7 	from section 256B.434. For the rate year beginning October 1, 2010, the operating cost 
136.8 	payment rate for each facility shall be 60 percent of the operating cost payment rate from 
136.9 	this section, and 40 percent of the operating cost payment rate from section 256B.434. For 
136.10 	the rate year beginning October 1, 2011, the operating cost payment rate for each facility 
136.11 	shall be 80 percent of the operating cost payment rate from this section, and 20 percent 
136.12 	of the operating cost payment rate from section 256B.434. For the rate year beginning 
136.13 	October 1, 2012, the operating cost payment rate for each facility shall be the operating 
136.14 	cost payment rate determined under this section. The blending of operating cost payment 
136.15 	rates under this section shall be performed separately for each RUG's class.

136.16 	Sec. 50. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
136.17 	subdivision to read:
136.18 		Subd. 56.Hold harmless. For the rate years beginning October 1, 2008, to October 
136.19 	1, 2012, no nursing facility shall receive an operating cost payment rate less than the 
136.20 	nursing facility's operating cost payment rate under section 256B.434. The comparison 
136.21 	of operating cost payment rates under this section shall be made for each of the RUG's 
136.22 	classes separately.

136.23 	Sec. 51. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
136.24 	subdivision to read:
136.25 		Subd. 57.Appeals. Nursing facilities may appeal, as described under section 
136.26 	256B.50, the determination of a payment rate established under this chapter.

136.27 	Sec. 52. Minnesota Statutes 2006, section 256B.49, subdivision 11, is amended to read:
136.28 		Subd. 11.Authority. (a) The commissioner is authorized to apply for home and 
136.29 	community-based service waivers, as authorized under section 1915(c) of the Social 
136.30 	Security Act to serve persons under the age of 65 who are determined to require the level 
136.31 	of care provided in a nursing home and persons who require the level of care provided in a 
136.32 	hospital. The commissioner shall apply for the home and community-based waivers in 
136.33 	order to:
137.1 	(i) promote the support of persons with disabilities in the most integrated settings;
137.2 	(ii) expand the availability of services for persons who are eligible for medical 
137.3 	assistance;
137.4 	(iii) promote cost-effective options to institutional care; and
137.5 	(iv) obtain federal financial participation.
137.6 	(b) The provision of waivered services to medical assistance recipients with 
137.7 	disabilities shall comply with the requirements outlined in the federally approved 
137.8 	applications for home and community-based services and subsequent amendments, 
137.9 	including provision of services according to a service plan designed to meet the needs of 
137.10 	the individual. For purposes of this section, the approved home and community-based 
137.11 	application is considered the necessary federal requirement.
137.12 	(c) The commissioner shall provide interested persons serving on agency advisory 
137.13 	committees and task forces, the Centers for Independent Living, and others uponwho 
137.14 	request, with to be on a list to receive  notice of, and an opportunity to comment on, at least 
137.15 	30 days before any effective dates, (1) any substantive changes to the state's disability 
137.16 	services provider manual or (2) changes or amendments to the federally approved 
137.17 	applications for home and community-based waivers, prior to their submission to the 
137.18 	federal Centers for Medicare and Medicaid Services.
137.19 	(d) The commissioner shall seek approval, as authorized under section 1915(c) of 
137.20 	the Social Security Act, to allow medical assistance eligibility under this section for 
137.21 	children under age 21 without deeming of parental income or assets.
137.22 	(e) The commissioner shall seek approval, as authorized under section 1915(c) of 
137.23 	the Social Act, to allow medical assistance eligibility under this section for individuals 
137.24 	under age 65 without deeming the spouse's income or assets.

137.25 	Sec. 53. Minnesota Statutes 2006, section 256B.49, subdivision 16, is amended to read:
137.26 		Subd. 16.Services and supports. (a) Services and supports included in the home 
137.27 	and community-based waivers for persons with disabilities shall meet the requirements set 
137.28 	out in United States Code, title 42, section 1396n. The services and supports, which are 
137.29 	offered as alternatives to institutional care, shall promote consumer choice, community 
137.30 	inclusion, self-sufficiency, and self-determination.
137.31 	(b) Beginning January 1, 2003, the commissioner shall simplify and improve access 
137.32 	to home and community-based waivered services, to the extent possible, through the 
137.33 	establishment of a common service menu that is available to eligible recipients regardless 
137.34 	of age, disability type, or waiver program.
138.1 	(c) Consumer directed community support services shall be offered as an option to 
138.2 	all persons eligible for services under subdivision 11, by January 1, 2002.
138.3 	(d) Services and supports shall be arranged and provided consistent with 
138.4 	individualized written plans of care for eligible waiver recipients.
138.5 	(e) A transitional supports allowance shall be available to all persons under a home 
138.6 	and community-based waiver who are moving from a licensed setting to a community 
138.7 	setting. "Transitional supports allowance" means a onetime payment of up to $3,000, to 
138.8 	cover the costs, not covered by other sources, associated with moving from a licensed 
138.9 	setting to a community setting. Covered costs include:
138.10 	(1) lease or rent deposits;
138.11 	(2) security deposits;
138.12 	(3) utilities set-up costs, including telephone;
138.13 	(4) essential furnishings and supplies; and
138.14 	(5) personal supports and transports needed to locate and transition to community 
138.15 	settings.
138.16 	(f) The state of Minnesota and county agencies that administer home and 
138.17 	community-based waivered services for persons with disabilities, shall not be liable 
138.18 	for damages, injuries, or liabilities sustained through the purchase of supports by the 
138.19 	individual, the individual's family, legal representative, or the authorized representative 
138.20 	with funds received through the consumer-directed community support service under 
138.21 	this section. Liabilities include but are not limited to: workers' compensation liability, 
138.22 	the Federal Insurance Contributions Act (FICA), or the Federal Unemployment Tax Act 
138.23 	(FUTA).
138.24 	(g) The commissioner shall seek federal approval for Medicaid reimbursement 
138.25 	of: independent living skills, supported employment, structured day, prevocational, and 
138.26 	adult day care services under the home and community-based waiver for persons with a 
138.27 	traumatic brain injury (TBI), the community alternatives for disabled individuals (CADI) 
138.28 	waiver, and the community alternative care (CAC) waiver when the provider demonstrates 
138.29 	evidence of its capacity to meet basic health, safety, and protection standards through one 
138.30 	of the following methods:
138.31 	(1) the provider is licensed to provide services under chapter 245B and agrees to 
138.32 	apply these standards to services funded through the TBI, CADI, or CAC home and 
138.33 	community-based waivers; or 
138.34 	(2) the local agency contracting for the services certifies on a form provided by the 
138.35 	commissioner that the provider has the capacity to meet the individual needs as identified 
138.36 	in each person's individual service plan. When certifying that the service provider meets 
139.1 	the necessary provider qualifications, the local agency shall verify that the provider has 
139.2 	policies and procedures governing the following:
139.3 	(i) protection of the consumer's rights and privacy;
139.4 	(ii) risk assessment and planning;
139.5 	(iii) record keeping and reporting of incidents and emergencies with documentation 
139.6 	of corrective action if needed;
139.7 	(iv) service outcomes, regular reviews of progress, and periodic reports;
139.8 	(v) complaint and grievance procedures;
139.9 	(vi) service termination or suspension; and 
139.10 	(vii) necessary training and supervision of direct care staff that includes:
139.11 	(A) documentation in personnel files of 20 hours of orientation training in providing 
139.12 	training related to service provision;
139.13 	(B) training in recognizing the symptoms and effects of certain disabilities, health 
139.14 	conditions, and positive behavioral supports and interventions; and 
139.15 	(C) a minimum of five hours of related training annually; and 
139.16 	(viii) when applicable:
139.17 	(A) safe medication administration;
139.18 	(B) proper handling of consumer funds; and 
139.19 	(C) compliance with prohibitions and standards developed by the commissioner to 
139.20 	satisfy federal requirements regarding the use of restraints and restrictive interventions. 
139.21 	The local agency shall review at least annually each service provider's continued 
139.22 	compliance with the standards governing basic health, safety, and protection of rights.
139.23 	(h) The commissioner shall seek federal approval for Medicaid reimbursement 
139.24 	of foster care services under the home and community-based waiver for persons with 
139.25 	a traumatic brain injury, the community alternatives for disabled individuals waiver, 
139.26 	and community alternative care waiver when the provider demonstrates evidence of its 
139.27 	capacity to meet basic health, safety, and protection standards. The local agency shall 
139.28 	verify that the provider is licensed under Minnesota Rules, parts 9555.5105 to 9555.6265, 
139.29 	and certify that the provider has policies and procedures that govern:
139.30 	(1) compliance with prohibitions and standards developed by the commissioner to 
139.31 	meet federal requirements regarding the use of restraints and restrictive interventions; and 
139.32 	(2) documentation of service needs and outcomes, regular reviews of progress, 
139.33 	and periodic reports.
139.34 	The local agency shall review at least annually each service provider's continued 
139.35 	compliance with the standards governing basic health, safety, and protection of rights 
139.36 	standards.

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

140.2 	Sec. 54. Minnesota Statutes 2006, section 256B.5012, is amended by adding a 
140.3 	subdivision to read:
140.4 		Subd. 7.ICF/MR rate increases effective October 1, 2007, and October 1, 2008.
 140.5 	(a) For the rate year beginning October 1, 2007, the commissioner shall make available 
140.6 	to each facility reimbursed under this section operating payment rate adjustments equal 
140.7 	to 2.83 percent of the operating payment rates in effect on September 30, 2007. For the 
140.8 	rate year beginning October 1, 2008, the commissioner shall make available to each 
140.9 	facility reimbursed under this section operating payment rate adjustments equal to 2.83 
140.10 	percent of the operating payment rates in effect on September 30, 2008. For each facility, 
140.11 	the commissioner shall make available an adjustment, based on occupied beds, using the 
140.12 	percentage specified in this paragraph multiplied by the total payment rate, including the 
140.13 	variable rate but excluding the property-related payment rate, in effect on the preceding 
140.14 	day. The total payment rate shall include the adjustment provided in section 256B.501, 
140.15 	subdivision 12. A facility whose payment rates are governed by closure agreements, 
140.16 	receivership agreements, or Minnesota Rules, part 9553.0075, is not eligible for an 
140.17 	adjustment otherwise granted under this subdivision.
140.18 	(b) Seventy-five percent of the money resulting from the rate adjustments under 
140.19 	paragraph (a) must be used for increases in compensation-related costs for employees 
140.20 	directly employed by the facility on or after the effective date of the rate adjustments, 
140.21 	except:
140.22 	(1) the administrator;
140.23 	(2) persons employed in the central office of a corporation that has an ownership 
140.24 	interest in the facility or exercises control over the facility; and 
140.25 	(3) persons paid by the facility under a management contract.
140.26 	(c) Sixty-seven percent of the money available under paragraph (b) must be used for 
140.27 	wage increases for all employees directly employed by the facility on or after the effective 
140.28 	date of the rate adjustments, except those listed in paragraph (b), clauses (1) to (3). The 
140.29 	wage adjustment that employees receive under this paragraph must be paid as an equal 
140.30 	hourly wage increase for all eligible employees. This paragraph shall not apply to:
140.31 	(1) employees eligible for a Taft-Hartley insurance plan established under United 
140.32 	States Code, title 29, section 186(c)(5); or 
140.33 	(2) public employees.
140.34 	(d) The commissioner shall allow as compensation-related costs all costs for:
140.35 	(1) wages and salaries;
141.1 	(2) FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers' 
141.2 	compensation;
141.3 	(3) the employer's share of health and dental insurance, life insurance, disability 
141.4 	insurance, long-term care insurance, uniform allowance, and pensions; and
141.5 	(4) other benefits provided, subject to the approval of the commissioner.
141.6 	(e) The portion of the rate adjustments under paragraph (a) that is not subject to the 
141.7 	requirements in paragraphs (b) and (c) shall be provided to facilities effective October 
141.8 	1 of each year.
141.9 	(f) Facilities may apply for the portion of the rate adjustments under paragraph 
141.10 	(a) that is subject to the requirements in paragraphs (b) and (c). The application 
141.11 	must be submitted to the commissioner within six months of the effective date of the 
141.12 	rate adjustments, and the facility must provide additional information required by 
141.13 	the commissioner within nine months of the effective date of the rate adjustments. 
141.14 	The commissioner must respond to all applications within three weeks of receipt. 
141.15 	The commissioner may waive the deadlines in this paragraph under extraordinary 
141.16 	circumstances, to be determined at the sole discretion of the commissioner. The 
141.17 	application must contain:
141.18 	(1) an estimate of the amounts of money that must be used as specified in paragraphs 
141.19 	(b) and (c);
141.20 	(2) a detailed distribution plan specifying the allowable compensation-related and 
141.21 	wage increases the facility will implement to use the funds available in clause (1);
141.22 	(3) a description of how the facility will notify eligible employees of the contents of 
141.23 	the approved application, which must provide for giving each eligible employee a copy of 
141.24 	the approved application, excluding the information required in clause (1), or posting a 
141.25 	copy of the approved application, excluding the information required in clause (1), for 
141.26 	a period of at least six weeks in an area of the facility to which all eligible employees 
141.27 	have access; and
141.28 	(4) instructions for employees who believe they have not received the 
141.29 	compensation-related or wage increases specified in clause (2), as approved by the 
141.30 	commissioner, and which must include a mailing address, e-mail address, and the 
141.31 	telephone number that may be used by the employee to contact the commissioner or the 
141.32 	commissioner's representative.
141.33 	(g) The commissioner shall ensure that cost increases in distribution plans under 
141.34 	paragraph (f), clause (2), that may be included in approved applications, comply with 
141.35 	requirements in clauses (1) to (4):
142.1 	(1) costs to be incurred during the applicable rate year resulting from wage and salary 
142.2 	increases implemented prior to the first day of the facility's payroll period that includes 
142.3 	October 1 of each year shall be allowed if they were not used in a prior year's application;
142.4 	(2) a portion of the costs resulting from tenure-related wage or salary increases 
142.5 	may be considered to be allowable wage increases, according to formulas that the 
142.6 	commissioner shall provide, where employee retention is above the average statewide 
142.7 	rate of retention of direct care employees;
142.8 	(3) the annualized amount of increases in costs for the employer's share of health 
142.9 	and dental insurance, life insurance, disability insurance, and workers' compensation shall 
142.10 	be allowable compensation-related increases if they are effective on or after April 1 of 
142.11 	the year in which the rate adjustments are effective and prior to April 1 of the following 
142.12 	year; and 
142.13 	(4) for facilities in which employees are represented by an exclusive bargaining 
142.14 	representative, the commissioner shall approve the application only upon receipt of a letter 
142.15 	of acceptance of the distribution plan, as regards members of the bargaining unit, signed 
142.16 	by the exclusive bargaining agent and dated after enactment of this subdivision. Upon 
142.17 	receipt of the letter of acceptance, the commissioner shall deem all requirements of this 
142.18 	section as having been met in regard to the members of the bargaining unit.
142.19 	(h) The commissioner shall review applications received under paragraph (f) and 
142.20 	shall provide the portion of the rate adjustments under paragraphs (b) and (c) if the 
142.21 	requirements of this subdivision have been met. The rate adjustments shall be effective 
142.22 	October 1 of each year. Notwithstanding paragraph (a), if the approved application 
142.23 	distributes less money than is available, the amount of the rate adjustment shall be reduced 
142.24 	so that the amount of money made available is equal to the amount to be distributed.

142.25 	Sec. 55. [256C.261] SERVICES FOR DEAF-BLIND PERSONS.
142.26 	(a) The commissioner of human services shall combine the existing biennial base 
142.27 	level funding for deaf-blind services into a single grant program. At least 35 percent 
142.28 	of the total funding is awarded for services and other supports to deaf-blind children 
142.29 	and their families and at least  25 percent is awarded for services and other supports to 
142.30 	deaf-blind adults.
142.31 	The commissioner shall award grants for the purposes of: 
142.32 	(1) providing services and supports to individuals who are deaf-blind; and 
142.33 	(2) developing and providing training to counties and the network of senior citizen 
142.34 	service providers. The purpose of the training grants is to teach counties how to use 
142.35 	existing programs that capture federal financial participation to meet the needs of eligible 
143.1 	deaf-blind persons and to build capacity of senior service programs to meet the needs of 
143.2 	seniors with a dual sensory hearing and vision loss.
143.3 	(b) The commissioner may make grants:
143.4 	(1) for services and training provided by organizations; and
143.5 	(2) to develop and administer consumer-directed services.
143.6 	(c) Any entity that is able to satisfy the grant criteria is eligible to receive a grant 
143.7 	under paragraph (a).
143.8 	(d) Deaf-blind service providers may, but are not required to provide intervenor 
143.9 	services as part of the service package provided with grant funds under this section.

143.10 	Sec. 56. Minnesota Statutes 2006, section 256D.03, subdivision 4, is amended to read:
143.11 		Subd. 4.General assistance medical care; services. (a)(i) For a person who is 
143.12 	eligible under subdivision 3, paragraph (a), clause (2), item (i), general assistance medical 
143.13 	care covers, except as provided in paragraph (c):
143.14 	(1) inpatient hospital services;
143.15 	(2) outpatient hospital services;
143.16 	(3) services provided by Medicare certified rehabilitation agencies;
143.17 	(4) prescription drugs and other products recommended through the process 
143.18 	established in section 256B.0625, subdivision 13;
143.19 	(5) equipment necessary to administer insulin and diagnostic supplies and equipment 
143.20 	for diabetics to monitor blood sugar level;
143.21 	(6) eyeglasses and eye examinations provided by a physician or optometrist;
143.22 	(7) hearing aids;
143.23 	(8) prosthetic devices;
143.24 	(9) laboratory and X-ray services;
143.25 	(10) physician's services;
143.26 	(11) medical transportation except special transportation;
143.27 	(12) chiropractic services as covered under the medical assistance program;
143.28 	(13) podiatric services;
143.29 	(14) dental services as covered under the medical assistance program;
143.30 	(15) outpatient services provided by a mental health center or clinic that is under 
143.31 	contract with the county board and is established under section 245.62;
143.32 	(16) day treatment services for mental illness provided under contract with the 
143.33 	county board;
143.34 	(17) prescribed medications for persons who have been diagnosed as mentally ill as 
143.35 	necessary to prevent more restrictive institutionalization;
144.1 	(18) psychological services, medical supplies and equipment, and Medicare 
144.2 	premiums, coinsurance and deductible payments;
144.3 	(19) medical equipment not specifically listed in this paragraph when the use of 
144.4 	the equipment will prevent the need for costlier services that are reimbursable under 
144.5 	this subdivision;
144.6 	(20) services performed by a certified pediatric nurse practitioner, a certified family 
144.7 	nurse practitioner, a certified adult nurse practitioner, a certified obstetric/gynecological 
144.8 	nurse practitioner, a certified neonatal nurse practitioner, or a certified geriatric nurse 
144.9 	practitioner in independent practice, if (1) the service is otherwise covered under this 
144.10 	chapter as a physician service, (2) the service provided on an inpatient basis is not included 
144.11 	as part of the cost for inpatient services included in the operating payment rate, and (3) the 
144.12 	service is within the scope of practice of the nurse practitioner's license as a registered 
144.13 	nurse, as defined in section 148.171;
144.14 	(21) services of a certified public health nurse or a registered nurse practicing in 
144.15 	a public health nursing clinic that is a department of, or that operates under the direct 
144.16 	authority of, a unit of government, if the service is within the scope of practice of the 
144.17 	public health nurse's license as a registered nurse, as defined in section 148.171;
144.18 	(22) telemedicine consultations, to the extent they are covered under section 
144.19 	256B.0625, subdivision 3b; and
144.20 	(23) mental health telemedicine and psychiatric consultation as covered under 
144.21 	section 256B.0625, subdivisions 46 and 48.; and
144.22 	(24) regardless of the number of employees that an enrolled health care provider 
144.23 	may have, sign language interpreter services when provided by an enrolled health care 
144.24 	provider during the course of providing a direct, person-to-person covered health care 
144.25 	service to an enrolled recipient who has a hearing loss and uses interpreting services.
144.26 	(ii) Effective October 1, 2003, for a person who is eligible under subdivision 3, 
144.27 	paragraph (a), clause (2), item (ii), general assistance medical care coverage is limited 
144.28 	to inpatient hospital services, including physician services provided during the inpatient 
144.29 	hospital stay. A $1,000 deductible is required for each inpatient hospitalization.
144.30 	(b) Effective August 1, 2005, sex reassignment surgery is not covered under this 
144.31 	subdivision.
144.32 	(c) In order to contain costs, the commissioner of human services shall select 
144.33 	vendors of medical care who can provide the most economical care consistent with high 
144.34 	medical standards and shall where possible contract with organizations on a prepaid 
144.35 	capitation basis to provide these services. The commissioner shall consider proposals by 
144.36 	counties and vendors for prepaid health plans, competitive bidding programs, block grants, 
145.1 	or other vendor payment mechanisms designed to provide services in an economical 
145.2 	manner or to control utilization, with safeguards to ensure that necessary services are 
145.3 	provided. Before implementing prepaid programs in counties with a county operated or 
145.4 	affiliated public teaching hospital or a hospital or clinic operated by the University of 
145.5 	Minnesota, the commissioner shall consider the risks the prepaid program creates for the 
145.6 	hospital and allow the county or hospital the opportunity to participate in the program in a 
145.7 	manner that reflects the risk of adverse selection and the nature of the patients served by 
145.8 	the hospital, provided the terms of participation in the program are competitive with the 
145.9 	terms of other participants considering the nature of the population served. Payment for 
145.10 	services provided pursuant to this subdivision shall be as provided to medical assistance 
145.11 	vendors of these services under sections 256B.02, subdivision 8, and 256B.0625. For 
145.12 	payments made during fiscal year 1990 and later years, the commissioner shall consult 
145.13 	with an independent actuary in establishing prepayment rates, but shall retain final control 
145.14 	over the rate methodology.
145.15 	(d) Recipients eligible under subdivision 3, paragraph (a), shall pay the following 
145.16 	co-payments for services provided on or after October 1, 2003:
145.17 	(1) $25 for eyeglasses;
145.18 	(2) $25 for nonemergency visits to a hospital-based emergency room;
145.19 	(3) $3 per brand-name drug prescription and $1 per generic drug prescription, 
145.20 	subject to a $12 per month maximum for prescription drug co-payments. No co-payments 
145.21 	shall apply to antipsychotic drugs when used for the treatment of mental illness; and
145.22 	(4) 50 percent coinsurance on restorative dental services.
145.23 	(e) Co-payments shall be limited to one per day per provider for nonpreventive visits, 
145.24 	eyeglasses, and nonemergency visits to a hospital-based emergency room. Recipients of 
145.25 	general assistance medical care are responsible for all co-payments in this subdivision. 
145.26 	The general assistance medical care reimbursement to the provider shall be reduced by 
145.27 	the amount of the co-payment, except that reimbursement for prescription drugs shall not 
145.28 	be reduced once a recipient has reached the $12 per month maximum for prescription 
145.29 	drug co-payments. The provider collects the co-payment from the recipient. Providers 
145.30 	may not deny services to recipients who are unable to pay the co-payment, except as 
145.31 	provided in paragraph (f).
145.32 	(f) If it is the routine business practice of a provider to refuse service to an individual 
145.33 	with uncollected debt, the provider may include uncollected co-payments under this 
145.34 	section. A provider must give advance notice to a recipient with uncollected debt before 
145.35 	services can be denied.
146.1 	(g) Any county may, from its own resources, provide medical payments for which 
146.2 	state payments are not made.
146.3 	(h) Chemical dependency services that are reimbursed under chapter 254B must not 
146.4 	be reimbursed under general assistance medical care.
146.5 	(i) The maximum payment for new vendors enrolled in the general assistance 
146.6 	medical care program after the base year shall be determined from the average usual and 
146.7 	customary charge of the same vendor type enrolled in the base year.
146.8 	(j) The conditions of payment for services under this subdivision are the same as the 
146.9 	conditions specified in rules adopted under chapter 256B governing the medical assistance 
146.10 	program, unless otherwise provided by statute or rule.
146.11 	(k) Inpatient and outpatient payments shall be reduced by five percent, effective July 
146.12 	1, 2003. This reduction is in addition to the five percent reduction effective July 1, 2003, 
146.13 	and incorporated by reference in paragraph (i).
146.14 	(l) Payments for all other health services except inpatient, outpatient, and pharmacy 
146.15 	services shall be reduced by five percent, effective July 1, 2003.
146.16 	(m) Payments to managed care plans shall be reduced by five percent for services 
146.17 	provided on or after October 1, 2003.
146.18 	(n) A hospital receiving a reduced payment as a result of this section may apply the 
146.19 	unpaid balance toward satisfaction of the hospital's bad debts.
146.20 	(o) Fee-for-service payments for nonpreventive visits shall be reduced by $3 
146.21 	for services provided on or after January 1, 2006. For purposes of this subdivision, a 
146.22 	visit means an episode of service which is required because of a recipient's symptoms, 
146.23 	diagnosis, or established illness, and which is delivered in an ambulatory setting by 
146.24 	a physician or physician ancillary, chiropractor, podiatrist, advance practice nurse, 
146.25 	audiologist, optician, or optometrist.
146.26 	(p) Payments to managed care plans shall not be increased as a result of the removal 
146.27 	of the $3 nonpreventive visit co-payment effective January 1, 2006.

146.28 	Sec. 57. Minnesota Statutes 2006, section 462A.05, is amended by adding a 
146.29 	subdivision to read:
146.30 		Subd. 42.Reverse mortgage incentive program. (a) The agency shall, within the 
146.31 	limits of appropriations made available for this purpose, establish, in cooperation with 
146.32 	the commissioner of human services, a program to encourage eligible persons to obtain 
146.33 	reverse mortgages to pay for eligible costs of maintaining the person in the home as an 
146.34 	alternative to a nursing facility placement. 
147.1 	(b) The incentive program shall be made available to a person who has been 
147.2 	determined by the commissioner of human services or the commissioner's designated 
147.3 	agent to meet all of the following criteria:
147.4 	(1) is age 62 or older; 
147.5 	(2) would be eligible for medical assistance within 365 days of admission to a 
147.6 	nursing home;
147.7 	(3) is not a medical assistance recipient, is not eligible for medical assistance without 
147.8 	a spenddown or waiver obligation, is not ineligible for the medical assistance program due 
147.9 	to an asset transfer penalty, and does not have income greater than the maintenance needs 
147.10 	allowance under section 256B.0915, subdivision 1d, but equal to or less than 120 percent 
147.11 	of the federal poverty guidelines effective July 1 in the year for which program eligibility 
147.12 	is established, who would be eligible for the elderly waiver with a waiver obligation; 
147.13 	(4) needs services that are not funded through other state or federal funding for 
147.14 	which the person qualifies; 
147.15 	(5) obtains a reverse mortgage loan under section 47.58 on a home with an estimated 
147.16 	market value not to exceed $156,000. This limit shall be adjusted annually on April 1 
147.17 	by the percentage change for the previous calendar year in the housing component of the 
147.18 	United States Consumer Price Index - all urban consumers; and 
147.19 	(6) agrees to make expenditures of reverse mortgage payments according to a 
147.20 	spending plan established under section 256B.0911, subdivision 3a, in which payments, 
147.21 	services, and supports meet the following standards: 
147.22 	(i) payments received under the loan for a period of at least 24 months or in an 
147.23 	amount of at least $15,000 are used for services and supports, including basic shelter 
147.24 	needs, home maintenance, and modifications or adaptations, necessary to allow the person 
147.25 	to remain in the home as an alternative to a nursing facility placement; 
147.26 	(ii) reimbursements for services, supplies, and equipment shall not exceed the 
147.27 	market rate; and 
147.28 	(iii) if the person's spouse qualifies under section 256B.0913, subdivisions 1 to 14, 
147.29 	the reverse mortgage payments may be used to pay client fees under that section. 
147.30 	(c) The incentives available under this program shall include: 
147.31 	(1) payment of the initial mortgage insurance premium for a reverse mortgage. 
147.32 	The maximum payment under this clause shall be limited to $1,560. This limit shall be 
147.33 	adjusted annually on April 1 by the percentage change for the previous calendar year in 
147.34 	the housing component of the United States Consumer Price Index - all urban consumers;
147.35 	(2) with federal approval, payments to reduce service fee set-asides, through an 
147.36 	advance payment to the lender, an agreement to guarantee fee payments after 60 months 
148.1 	if the set-aside is limited to 60 months, or through other mechanisms approved by the 
148.2 	commissioner; and  
148.3 	(3) other incentives approved by the commissioner. 
148.4 	(d) After calculating the adjusted maximum payment limits under paragraphs (b) 
148.5 	and (c), the commissioner shall annually notify the Office of the Revisor of Statutes in 
148.6 	writing, on or before May 1, of the adjusted limits. The revisor shall annually publish in 
148.7 	the Minnesota Statutes the adjusted maximum payment limits under paragraph (b).

148.8 	Sec. 58. LICENSURE; SERVICES FOR YOUTH WITH DISABILITIES.
 148.9 	(a) Notwithstanding the requirements of Minnesota Statutes, chapter 245A, upon 
148.10 	the recommendation of a county agency, the commissioner of human services shall 
148.11 	grant a license with any necessary variances to a nonresidential program for youth 
148.12 	that provides services to youth with disabilities under age 21 during nonschool hours 
148.13 	established to ensure health and safety, prevent out-of-home placement, and increase 
148.14 	community inclusion of youth with disabilities. The nonresidential youth program is 
148.15 	subject to the conditions of any variances granted and to consumer rights standards under 
148.16 	Minnesota Statutes, section 245B.04; consumer protection standards under Minnesota 
148.17 	Statutes, section 245B.05; service standards under Minnesota Statutes, section 245B.06; 
148.18 	management standards under Minnesota Statutes, section 245B.07; and fire marshal 
148.19 	inspections under Minnesota Statutes, section 245A.151, until the commissioner develops 
148.20 	other licensure requirements for this type of program.
148.21 	(b) By February 1, 2008, the commissioner shall recommend amendments to 
148.22 	licensure requirements in Minnesota Statutes, chapter 245A, to allow licensure of 
148.23 	appropriate services for school-age youth with disabilities under age 21 who need 
148.24 	supervision and services to develop skills necessary to maintain personal safety and 
148.25 	increase their independence, productivity, and participation in their communities during 
148.26 	nonschool hours. As part of developing the recommendations, the commissioner shall 
148.27 	survey county agencies to determine how the needs of youth with disabilities under age 21 
148.28 	who require supervision and support services are being met and the funding sources used. 
148.29 	The recommendations must be provided to the house and senate chairs of the committees 
148.30 	with jurisdiction over licensing of programs for youth with disabilities.

148.31 	Sec. 59. HOUSING WITH SERVICES AND HOME CARE PROVIDERS 
148.32 	STUDY; REPORT.
 148.33 	The commissioner of human services shall conduct a study of housing with 
148.34 	services establishments and their arranged home care providers to assess the impact that 
149.1 	residents' spending down to eligibility for public programs has on public expenditures. 
149.2 	The preliminary results of this study shall be reported to the house and senate committees 
149.3 	with jurisdiction over health and human services policy and finance issues by February 
149.4 	15, 2008, with a final report completed by December 15, 2008. Housing with services 
149.5 	establishments and home care providers shall provide information upon request of the 
149.6 	commissioner in order to achieve study outcomes, including:
149.7 	(1) length of stay of residents in the housing with services establishment;
149.8 	(2) housing and services provided and related charges, payments, and payment 
149.9 	sources;
149.10 	(3) housing and services included in base rates charged to all residents;
149.11 	(4) reasons for termination of services;
149.12 	(5) reasons for termination of leases;
149.13 	(6) copies of contracts, agreements, and leases;
149.14 	(7) resident demographics; and
149.15 	(8) other information as requested by the commissioner.

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

149.17 	Sec. 60. PROVIDER RATE INCREASES.
 149.18 	(a) The commissioner of human services shall increase reimbursement rates or rate 
149.19 	limits, as applicable, by 2.83 percent beginning October 1, 2007, and by 2.83 percent 
149.20 	beginning October 1, 2008, effective for services rendered on or after those dates. County 
149.21 	contracts for services specified in this section must be amended to pass through these rate 
149.22 	adjustments within 60 days of the effective date of the increase and must be retroactive 
149.23 	from the effective date of the rate adjustment.
149.24 	(b) The annual rate increases described in this section must be provided to: 
149.25 	(1) home and community-based waivered services for persons with developmental 
149.26 	disabilities or related conditions, including consumer-directed community supports, under 
149.27 	Minnesota Statutes, section 256B.501; 
149.28 	(2) home and community-based waivered services for the elderly, including 
149.29 	consumer-directed community supports, under Minnesota Statutes, section 256B.0915; 
149.30 	(3) waivered services under community alternatives for disabled individuals, 
149.31 	including consumer-directed community supports, under Minnesota Statutes, section 
149.32 	256B.49; 
149.33 	(4) community alternative care waivered services, including consumer-directed 
149.34 	community supports, under Minnesota Statutes, section 256B.49; 
150.1 	(5) traumatic brain injury waivered services, including consumer-directed 
150.2 	community supports, under Minnesota Statutes, section 256B.49; 
150.3 	(6) nursing services and home health services under Minnesota Statutes, section 
150.4 	256B.0625, subdivision 6a; 
150.5 	(7) personal care services and qualified professional supervision of personal care 
150.6 	services under Minnesota Statutes, section 256B.0625, subdivision 19a; 
150.7 	(8) private duty nursing services under Minnesota Statutes, section 256B.0625, 
150.8 	subdivision 7; 
150.9 	(9) day training and habilitation services for adults with developmental disabilities 
150.10 	or related conditions under Minnesota Statutes, sections 252.40 to 252.46; 
150.11 	(10) alternative care services under Minnesota Statutes, section 256B.0913; 
150.12 	(11) adult residential program grants under Minnesota Statutes, section 245.73;
150.13 	(12) children's community-based mental health services grants and adult community 
150.14 	support and case management services grants under Minnesota Rules, parts 9535.1700 
150.15 	to 9535.1760; 
150.16 	(13) the group residential housing supplementary service rate under Minnesota 
150.17 	Statutes, section 256I.05, subdivision 1a; 
150.18 	(14) adult mental health integrated fund grants under Minnesota Statutes, section 
150.19 	245.4661;
150.20 	(15) semi-independent living services (SILS) under Minnesota Statutes, section 
150.21 	252.275, including SILS funding under county social services grants formerly funded 
150.22 	under Minnesota Statutes, chapter 256I; 
150.23 	(16) community support services for deaf and hard-of-hearing adults with mental 
150.24 	illness who use or wish to use sign language as their primary means of communication 
150.25 	under Minnesota Statutes, section 256.01, subdivision 2; and deaf and hard-of-hearing 
150.26 	grants under Minnesota Statutes, sections 256C.225 and 256C.233; Laws 1985, chapter 9, 
150.27 	article 1; and Laws 1997, First Special Session chapter 5, section 20; 
150.28 	(17) living skills training programs for persons with intractable epilepsy who need 
150.29 	assistance in the transition to independent living under Laws 1988, chapter 689; 
150.30 	(18) physical therapy services under sections 256B.0625, subdivision 8, and 
150.31 	256D.03, subdivision 4; 
150.32 	(19) occupational therapy services under sections 256B.0625, subdivision 8a, and 
150.33 	256D.03, subdivision 4; 
150.34 	(20) speech-language therapy services under section 256D.03, subdivision 4, and 
150.35 	Minnesota Rules, part 9505.0390; 
151.1 	(21) respiratory therapy services under section 256D.03, subdivision 4, and 
151.2 	Minnesota Rules, part 9505.0295; 
151.3 	(22) adult rehabilitative mental health services under section 256B.0623;
151.4 	(23) children's therapeutic services and support services under section 256B.0943;
151.5 	(24) tier I chemical health services under Minnesota Statutes, chapter 254B;
151.6 	(25) consumer support grants under Minnesota Statutes, section 256.476;
151.7 	(26) family support grants under Minnesota Statutes, section 252.32; 
151.8 	(27) grants for case management services to persons with HIV or AIDS under 
151.9 	Minnesota Statutes, section 256.01, subdivision 19; and 
151.10 	(28) aging grants under Minnesota Statutes, sections 256.975 to 256.977, 256B.0917, 
151.11 	and 256B.0928.
151.12 	(c) For services funded through Minnesota disability health options, the rate 
151.13 	increases under this section apply to all medical assistance payments, including former 
151.14 	group residential housing supplementary rates under Minnesota Statutes, chapter 256I.
151.15 	(d) The commissioner may recoup payments made under this section from a provider 
151.16 	that does not comply with paragraphs (f) and (g).
151.17 	(e) A managed care plan receiving state payments for the services in this section 
151.18 	must include these increases in their payments to providers on a prospective basis, 
151.19 	effective on January 1 following the effective date of the rate increase.
151.20 	(f) Providers that receive a rate increase under this section shall use 75 percent of 
151.21 	the additional revenue to increase compensation-related costs for employees directly 
151.22 	employed by the program on or after the effective date of the rate adjustments, except: 
151.23 	(1) the administrator;
151.24 	(2) persons employed in the central office of a corporation or entity that has an 
151.25 	ownership interest in the provider or exercises control over the provider; and 
151.26 	(3) persons paid by the provider under a management contract.
151.27 	Compensation-related costs include: wages and salaries; FICA taxes, Medicare taxes, 
151.28 	state and federal unemployment taxes, and workers' compensation; and the employer's 
151.29 	share of health and dental insurance, life insurance, disability insurance, long-term care 
151.30 	insurance, uniform allowance, and pensions.
151.31 	(g) Sixty-seven percent of the money available under paragraph (f) must be used 
151.32 	for wage increases for all employees directly employed by the provider on or after the 
151.33 	effective date of the rate adjustments, except those listed in paragraph (f), clauses (1) to 
151.34 	(3). The wage adjustment that employees receive under this paragraph must be paid as an 
151.35 	equal hourly wage increase for all eligible employees. This paragraph shall not apply to:
152.1 	(1) employees eligible for a Taft-Hartley insurance plan established under United 
152.2 	States Code, title 29, section 186(c)(5); or 
152.3 	(2) public employees.
152.4 	(h) For public employees, the increase for wages and benefits for certain staff is 
152.5 	available and pay rates must be increased only to the extent that they comply with laws 
152.6 	governing public employees collective bargaining. Money received by a provider for pay 
152.7 	increases under this section may be used only for increases implemented on or after the 
152.8 	first day of the rate period in which the increase is available and must not be used for 
152.9 	increases implemented prior to that date. 
152.10 	(i) The commissioner shall amend state grant contracts that include direct 
152.11 	personnel-related grant expenditures to include the rate adjustment for the portion of the 
152.12 	contract that is employee compensation related. Grant contracts for compensation-related 
152.13 	services must be amended to pass through these adjustments within 60 days of the effective 
152.14 	date of the increase and must be retroactive to the effective date of the rate adjustment.
152.15 	(j) The Board on Aging and its Area Agencies on Aging shall amend their 
152.16 	grants that include direct personnel-related grant expenditures to include the rate 
152.17 	adjustment for the portion of the grant that is employee compensation related. Grants 
152.18 	for compensation-related services must be amended to pass through these adjustments 
152.19 	within 60 days of the effective date of the increase and must be retroactive to the effective 
152.20 	date of the rate adjustment.
152.21 	(k) The calendar year 2008 rate for vendors reimbursed under Minnesota Statutes, 
152.22 	chapter 254B, shall be at least 2.83 percent above the rate in effect on January 1, 2007. 
152.23 	The calendar year 2009 rate shall be at least 2.83 percent above the rate in effect on 
152.24 	January 1, 2008.
152.25 	(l) Providers that receive a rate adjustment under paragraph (a) that is subject to 
152.26 	paragraphs (f) and (g) shall provide to the commissioner, and those counties with whom 
152.27 	they have a contract, within six months after the effective date of each rate adjustment, a 
152.28 	letter, in a format specified by the commissioner, that provides assurances that the provider 
152.29 	has developed and implemented a compensation plan and complied with paragraphs (f) 
152.30 	and (g). The provider shall keep on file, and produce for the commissioner or county 
152.31 	upon request, its plan, which must specify:
152.32 	(1) an estimate of the amounts of money that must be used as specified in paragraphs 
152.33 	(f) and (g); and 
152.34 	(2) a detailed distribution plan specifying the allowable compensation-related and 
152.35 	wage increases the provider will implement to use the funds available in clause (1).
153.1 	(m) Within six months after the effective date of each rate adjustment, the provider 
153.2 	shall post this plan, excluding the information required in paragraph (l), clause (1), for 
153.3 	a period of at least six weeks in an area of the provider's operation to which all eligible 
153.4 	employees have access and provide instructions for employees who believe they have 
153.5 	not received the wage and other compensation-related increases specified in paragraph 
153.6 	(l), clause (2). Instructions must include a mailing address, e-mail address, and the 
153.7 	telephone number that may be used by the employee to contact the commissioner or the 
153.8 	commissioner's representative. Providers shall also make assurances to the commissioner 
153.9 	and counties with whom they have a contract that they have complied with the requirement 
153.10 	in this paragraph.

153.11 	Sec. 61. PROVIDER RATE INCREASE.
 153.12 	Effective July 1, 2007, a day training and habilitation provider in St. Louis County 
153.13 	providing services for up to 80 individuals shall have a reimbursement rate that equals 94 
153.14 	percent of 125 percent of the statewide median per diem.

153.15 	Sec. 62.  REPEALER.
 153.16 	Minnesota Statutes 2006, section 256B.441, subdivisions 12, 16, 21, 26, 28, 42, 
153.17 	and 45, are repealed.

153.18 	ARTICLE 6
153.19 	MENTAL AND CHEMICAL HEALTH

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

153.29 	Sec. 2. Minnesota Statutes 2006, section 148C.11, subdivision 1, is amended to read:
153.30 		Subdivision 1.Other professionals. (a) Nothing in this chapter prevents members 
153.31 	of other professions or occupations from performing functions for which they are qualified 
153.32 	or licensed. This exception includes, but is not limited to: licensed physicians; registered 
154.1 	nurses; licensed practical nurses; licensed psychological practitioners; members of 
154.2 	the clergy; American Indian medicine men and women; licensed attorneys; probation 
154.3 	officers; licensed marriage and family therapists; licensed social workers; social workers 
154.4 	employed by city, county, or state agencies; licensed professional counselors; licensed 
154.5 	school counselors; registered occupational therapists or occupational therapy assistants; 
154.6 	city, county, or state employees when providing assessments or case management under 
154.7 	Minnesota Rules, chapter 9530; and until July 1, 2007 2009, individuals providing 
154.8 	integrated dual-diagnosis treatment in adult mental health rehabilitative programs certified 
154.9 	by the Department of Human Services under section 256B.0622 or 256B.0623.
154.10 	(b) Nothing in this chapter prohibits technicians and resident managers in programs 
154.11 	licensed by the Department of Human Services from discharging their duties as provided 
154.12 	in Minnesota Rules, chapter 9530.
154.13 	(c) Any person who is exempt under this subdivision but who elects to obtain a 
154.14 	license under this chapter is subject to this chapter to the same extent as other licensees. 
154.15 	The board shall issue a license without examination to an applicant who is licensed or 
154.16 	registered in a profession identified in paragraph (a) if the applicant:
154.17 	(1) shows evidence of current licensure or registration; and
154.18 	(2) has submitted to the board a plan for supervision during the first 2,000 hours of 
154.19 	professional practice or has submitted proof of supervised professional practice that is 
154.20 	acceptable to the board.
154.21 	(d) Any person who is exempt from licensure under this section must not use a 
154.22 	title incorporating the words "alcohol and drug counselor" or "licensed alcohol and drug 
154.23 	counselor" or otherwise hold themselves out to the public by any title or description 
154.24 	stating or implying that they are engaged in the practice of alcohol and drug counseling, 
154.25 	or that they are licensed to engage in the practice of alcohol and drug counseling unless 
154.26 	that person is also licensed as an alcohol and drug counselor. Persons engaged in the 
154.27 	practice of alcohol and drug counseling are not exempt from the board's jurisdiction 
154.28 	solely by the use of one of the above titles.

154.29 	Sec. 3. Minnesota Statutes 2006, section 169A.70, subdivision 4, is amended to read:
154.30 		Subd. 4.Assessor standards; rules; assessment time limits. A chemical use 
154.31 	assessment required by this section must be conducted by an assessor appointed by the 
154.32 	court. The assessor must meet the training and qualification requirements of rules adopted 
154.33 	by the commissioner of human services under section 254A.03, subdivision 3 (chemical 
154.34 	dependency treatment rules). Notwithstanding section 13.82 (law enforcement data), the 
154.35 	assessor shall have access to any police reports, laboratory test results, and other law 
155.1 	enforcement data relating to the current offense or previous offenses that are necessary 
155.2 	to complete the evaluation. An assessor providing an assessment under this section may 
155.3 	not have any direct or shared financial interest or referral relationship resulting in shared 
155.4 	financial gain with a treatment provider, except as authorized under section 254A.20, 
155.5 	subdivision 3. If an independent assessor is not available, the court may use the services 
155.6 	of an assessor authorized to perform assessments for the county social services agency 
155.7 	under a variance granted under rules adopted by the commissioner of human services 
155.8 	under section 254A.03, subdivision 3. An appointment for the defendant to undergo the 
155.9 	assessment must be made by the court, a court services probation officer, or the court 
155.10 	administrator as soon as possible but in no case more than one week after the defendant's 
155.11 	court appearance. The assessment must be completed no later than three weeks after the 
155.12 	defendant's court appearance. If the assessment is not performed within this time limit, the 
155.13 	county where the defendant is to be sentenced shall perform the assessment. The county 
155.14 	of financial responsibility must be determined under chapter 256G. 

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

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

155.21 	Sec. 5. [245.4682] MENTAL HEALTH SERVICE DELIVERY AND FINANCE 
155.22 	REFORM.
155.23 		Subdivision 1.Policy. The commissioner of human services shall undertake a series 
155.24 	of reforms to address the underlying structural, financial, and organizational problems in 
155.25 	Minnesota's mental health system with the goal of improving the availability, quality, and 
155.26 	accountability of mental health care within the state.
155.27 		Subd. 2.General provisions. (a) In the design and implementation of reforms to 
155.28 	the mental health system, the commissioner shall:
155.29 	(1) consult with consumers, families, counties, tribes, advocates, providers, and 
155.30 	other stakeholders;
155.31 	(2) bring to the legislature, and the State Advisory Council on Mental Health, by 
155.32 	January 15, 2008, recommendations for legislation to update the role of counties and to 
155.33 	clarify the case management roles and functions of health plans and counties;
156.1 	(3) ensure continuity of care for persons affected by these reforms including 
156.2 	ensuring client choice of provider by requiring broad provider networks and developing 
156.3 	mechanisms to facilitate a smooth transition of service responsibilities;
156.4 	(4) provide accountability for the efficient and effective use of public and private 
156.5 	resources in achieving positive outcomes for consumers;
156.6 	(5) ensure client access to applicable protections and appeals; and
156.7 	(6) make budget transfers necessary to implement the reallocation of services and 
156.8 	client responsibilities between counties and health care programs that do not increase the 
156.9 	state and county costs and efficiently allocate state funds.
156.10 	(b) When making transfers under paragraph (a) necessary to implement movement 
156.11 	of responsibility for clients and services between counties and health care programs, 
156.12 	the commissioner, in consultation with counties, shall ensure that any transfer of state 
156.13 	grants to health care programs, including the value of case management transfer grants 
156.14 	under section 256B.0625, subdivision 20, does not exceed the value of the services being 
156.15 	transferred for the latest 12-month period for which data is available. The commissioner 
156.16 	shall make quarterly adjustments based on the availability of additional data during the 
156.17 	first eight quarters after the transfers first occur. If case management transfer grants under 
156.18 	section 256B.0625, subdivision 20, are repealed and the value, based on the last year prior 
156.19 	to repeal, exceeds the value of the services being transferred, the difference becomes an 
156.20 	ongoing part of each county's adult and children's mental health grants under sections 
156.21 	245.4661, 245.4889, and 256E.12.
156.22 		Subd. 3.Projects for coordination of care. (a) Consistent with section 256B.69 
156.23 	and chapters 256D and 256L, the commissioner is authorized to solicit, approve, and 
156.24 	implement projects to demonstrate the integration of physical and mental health services 
156.25 	within prepaid health plans and their coordination with social services. The commissioner 
156.26 	shall require that each project be based on locally defined partnerships that include at 
156.27 	least one health maintenance organization, community integrated service network, or 
156.28 	accountable provider network authorized and operating under chapter 62D, 62N, or 62T, or 
156.29 	county-based purchasing entity under section 256B.692 that is eligible to contract with the 
156.30 	commissioner as a prepaid health plan, and the county or counties within the service area.
156.31 	(b) The commissioner, in consultation with consumers, families, and their 
156.32 	representatives, shall:
156.33 	(1) determine criteria for approving the projects and use those criteria to solicit 
156.34 	proposals for preferred integrated networks. The commissioner must develop criteria to 
156.35 	evaluate the partnership proposed by the county and prepaid health plan to coordinate 
157.1 	access and delivery of services. The proposal must at a minimum address how the 
157.2 	partnership will coordinate the provision of:
157.3 	(i) client outreach and identification of health and social service needs paired with 
157.4 	expedited access to appropriate resources;
157.5 	(ii) activities to maintain continuity of health care coverage;
157.6 	(iii) children's residential mental health treatment and treatment foster care;
157.7 	(iv) court-ordered assessments and treatments;
157.8 	(v) prepetition screening and commitments under chapter 253B;
157.9 	(vi) assessment and treatment of children identified through mental health screening 
157.10 	of child welfare and juvenile corrections cases;
157.11 	(vii) home and community-based waiver services;
157.12 	(viii) assistance with finding and maintaining employment;
157.13 	(ix) housing; and
157.14 	(x) transportation;
157.15 	(2) determine specifications for contracts with prepaid health plans to improve the 
157.16 	plan's ability to serve persons with mental health conditions, including specifications 
157.17 	addressing:
157.18 	(i) early identification and intervention of physical and behavioral health problems;
157.19 	(ii) communication between the enrollee and the health plan;
157.20 	(iii) facilitation of enrollment for persons who are also eligible for a Medicare 
157.21 	special needs plan offered by the health plan;
157.22 	(iv) risk screening procedures;
157.23 	(v) health care coordination;
157.24 	(vi) member services and access to applicable protections and appeal processes;
157.25 	(vii) specialty provider networks;
157.26 	(viii) transportation services;
157.27 	(ix) treatment planning; and
157.28 	(x) administrative simplification for providers;
157.29 	(3) begin implementation of the projects no earlier than January 1, 2009, with not 
157.30 	more than 40 percent of the statewide population  included during calendar year 2009 and 
157.31 	additional counties included in subsequent years;
157.32 	(4) waive any administrative rule not consistent with the implementation of the 
157.33 	projects; and
157.34 	(5) allow potential bidders at least 90 days to respond to the request for proposals.
157.35 	(c) Notwithstanding any statute or administrative rule to the contrary, the 
157.36 	commissioner may enroll all persons eligible for medical assistance with serious mental 
158.1 	illness or emotional disturbance in the prepaid plan of their choice within the project 
158.2 	service area unless:
158.3 	(1) the individual is eligible for home and community-based services for persons 
158.4 	with developmental disabilities and related conditions under section 256B.092; or
158.5 	(2) the individual has a basis for exclusion from the prepaid plan under section 
158.6 	256B.69, subdivision 4, other than disability, mental illness, or emotional disturbance.
158.7 	(d) If the person described in paragraph (c) does not elect to remain in fee-for-service 
158.8 	medical assistance, or declines to choose a plan, the commissioner may preferentially 
158.9 	assign that person to the prepaid plan participating in the preferred integrated network. 
158.10 	The commissioner shall implement the enrollment changes within a project's service area 
158.11 	on the timeline specified in that project's approved application.
158.12 	(e) A person enrolled in a prepaid health plan under paragraphs (c) and (d) may 
158.13 	disenroll from the plan at any time.
158.14 	(f) The commissioner, in consultation with consumers, families, and their 
158.15 	representatives, shall evaluate the projects begun in 2009, and shall refine the design of the 
158.16 	service integration projects before expanding the projects.
158.17 	(g) The commissioner shall apply for any federal waivers necessary to implement 
158.18 	these changes.
158.19 	(h) Payment for Medicaid service providers under this subdivision for the months of 
158.20 	May and June will be made no earlier than July 1 of the same calendar year.

158.21 	Sec. 6. Minnesota Statutes 2006, section 245.4874, is amended to read:
158.22 	245.4874 DUTIES OF COUNTY BOARD.
158.23 		Subdivision 1.Duties of the county board. (a) The county board must:
158.24 	(1) develop a system of affordable and locally available children's mental health 
158.25 	services according to sections 245.487 to 245.4887;
158.26 	(2) establish a mechanism providing for interagency coordination as specified in 
158.27 	section 245.4875, subdivision 6;
158.28 	(3) consider the assessment of unmet needs in the county as reported by the local 
158.29 	children's mental health advisory council under section 245.4875, subdivision 5, paragraph 
158.30 	(b), clause (3). The county shall provide, upon request of the local children's mental health 
158.31 	advisory council, readily available data to assist in the determination of unmet needs;
158.32 	(4) assure that parents and providers in the county receive information about how to 
158.33 	gain access to services provided according to sections 245.487 to 245.4887;
158.34 	(5) coordinate the delivery of children's mental health services with services 
158.35 	provided by social services, education, corrections, health, and vocational agencies to 
159.1 	improve the availability of mental health services to children and the cost-effectiveness of 
159.2 	their delivery;
159.3 	(6) assure that mental health services delivered according to sections 245.487
159.4 	to 245.4887 are delivered expeditiously and are appropriate to the child's diagnostic 
159.5 	assessment and individual treatment plan;
159.6 	(7) provide the community with information about predictors and symptoms of 
159.7 	emotional disturbances and how to access children's mental health services according to 
159.8 	sections 245.4877 and 245.4878;
159.9 	(8) provide for case management services to each child with severe emotional 
159.10 	disturbance according to sections 245.486; 245.4871, subdivisions 3 and 4; and 245.4881, 
159.11 	subdivisions 1, 3, and 5;
159.12 	(9) provide for screening of each child under section 245.4885 upon admission 
159.13 	to a residential treatment facility, acute care hospital inpatient treatment, or informal 
159.14 	admission to a regional treatment center;
159.15 	(10) prudently administer grants and purchase-of-service contracts that the county 
159.16 	board determines are necessary to fulfill its responsibilities under sections 245.487 to 
159.17 	245.4887;
159.18 	(11) assure that mental health professionals, mental health practitioners, and case 
159.19 	managers employed by or under contract to the county to provide mental health services 
159.20 	are qualified under section 245.4871;
159.21 	(12) assure that children's mental health services are coordinated with adult mental 
159.22 	health services specified in sections 245.461 to 245.486 so that a continuum of mental 
159.23 	health services is available to serve persons with mental illness, regardless of the person's 
159.24 	age;
159.25 	(13) assure that culturally informedcompetent mental health consultants are used as 
159.26 	necessary to assist the county board in assessing and providing appropriate treatment for 
159.27 	children of cultural or racial minority heritage; and
159.28 	(14) consistent with section 245.486, arrange for or provide a children's mental 
159.29 	health screening to a child receiving child protective services or a child in out-of-home 
159.30 	placement, a child for whom parental rights have been terminated, a child found to be 
159.31 	delinquent, and a child found to have committed a juvenile petty offense for the third or 
159.32 	subsequent time, unless a screening has been performed within the previous 180 days, or 
159.33 	the child is currently under the care of a mental health professional. The court or county 
159.34 	agency must notify a parent or guardian whose parental rights have not been terminated of 
159.35 	the potential mental health screening and the option to prevent the screening by notifying 
159.36 	the court or county agency in writing. The screening shall be conducted with a screening 
160.1 	instrument approved by the commissioner of human services according to criteria that 
160.2 	are updated and issued annually to ensure that approved screening instruments are valid 
160.3 	and useful for child welfare and juvenile justice populations, and shall be conducted 
160.4 	by a mental health practitioner as defined in section 245.4871, subdivision 26, or a 
160.5 	probation officer or local social services agency staff person who is trained in the use of 
160.6 	the screening instrument. Training in the use of the instrument shall include training in the 
160.7 	administration of the instrument, the interpretation of its validity given the child's current 
160.8 	circumstances, the state and federal data practices laws and confidentiality standards, the 
160.9 	parental consent requirement, and providing respect for families and cultural values. 
160.10 	If the screen indicates a need for assessment, the child's family, or if the family lacks 
160.11 	mental health insurance, the local social services agency, in consultation with the child's 
160.12 	family, shall have conducted a diagnostic assessment, including a functional assessment, 
160.13 	as defined in section 245.4871. The administration of the screening shall safeguard the 
160.14 	privacy of children receiving the screening and their families and shall comply with the 
160.15 	Minnesota Government Data Practices Act, chapter 13, and the federal Health Insurance 
160.16 	Portability and Accountability Act of 1996, Public Law 104-191. Screening results shall be 
160.17 	considered private data and the commissioner shall not collect individual screening results.
160.18 	(b) When the county board refers clients to providers of children's therapeutic 
160.19 	services and supports under section 256B.0943, the county board must clearly identify 
160.20 	the desired services components not covered under section 256B.0943 and identify the 
160.21 	reimbursement source for those requested services, the method of payment, and the 
160.22 	payment rate to the provider.
160.23 		Subd. 2.Responsibility not duplicated. For individuals who have health care 
160.24 	coverage, the county board is not responsible for providing mental health services which 
160.25 	are within the limits of the individual's health care coverage.

160.26 	Sec. 7. [245.4889] CHILDREN'S MENTAL HEALTH GRANTS.
160.27 		Subdivision 1.Establishment and authority. (a) The commissioner is authorized 
160.28 	to make grants from available appropriations to assist: 
160.29 	(1) counties;
160.30 	(2) Indian tribes;
160.31 	(3) children's collaboratives under section 124D.23 or 245.493; or
160.32 	(4) mental health service providers
160.33 	for providing services to children with emotional disturbances as defined in section 
160.34 	245.4871, subdivision 15, and their families. The commissioner may also authorize 
161.1 	grants to young adults meeting the criteria for transition services in section 245.4875, 
161.2 	subdivision 8, and their families. 
161.3 	(b) Services under paragraph (a) must be designed to help each child to function and 
161.4 	remain with the child's family in the community and delivered consistent with the child's 
161.5 	treatment plan. Transition services to eligible young adults under paragraph (a) must be 
161.6 	designed to foster independent living in the community.
161.7 		Subd. 2.Grant application and reporting requirements. To apply for a grant, 
161.8 	an applicant organization shall submit an application and budget for the use of the 
161.9 	money in the form specified by the commissioner. The commissioner shall make grants 
161.10 	only to entities whose applications and budgets are approved by the commissioner. In 
161.11 	awarding grants, the commissioner shall give priority to applications that indicate plans 
161.12 	to collaborate in the development, funding, and delivery of services with other agencies 
161.13 	in the local system of care. The commissioner shall specify requirements for reports, 
161.14 	including quarterly fiscal reports under section 256.01, subdivision 2, paragraph (q). The 
161.15 	commissioner shall require collection of data and periodic reports that the commissioner 
161.16 	deems necessary to demonstrate the effectiveness of each service.

161.17 	Sec. 8. Minnesota Statutes 2006, section 245.98, subdivision 2, is amended to read:
161.18 		Subd. 2.Program. The commissioner of human services shall establish a program 
161.19 	for the treatment of compulsive gamblers. The commissioner may contract with an 
161.20 	entity with expertise regarding the treatment of compulsive gambling to operate the 
161.21 	program. The program may include the establishment of a statewide toll-free number, 
161.22 	resource library, public education programs; regional in-service training programs and 
161.23 	conferences for health care professionals, educators, treatment providers, employee 
161.24 	assistance programs, and criminal justice representatives; and the establishment of 
161.25 	certification standards for programs and service providers. The commissioner may enter 
161.26 	into agreements with other entities and may employ or contract with consultants to 
161.27 	facilitate the provision of these services or the training of individuals to qualify them to 
161.28 	provide these services. The program may also include inpatient and outpatient treatment 
161.29 	and rehabilitation services and for residents in different settings, including a temporary or 
161.30 	permanent residential setting for mental health or chemical dependency, and individuals 
161.31 	in jails or correctional facilities. The program may also include research studies. The 
161.32 	research studies must include baseline and prevalence studies for adolescents and adults to 
161.33 	identify those at the highest risk. The program must be approved by the commissioner 
161.34 	before it is established.

162.1 	Sec. 9. Minnesota Statutes 2006, section 246.54, subdivision 1, is amended to read:
162.2 		Subdivision 1.County portion for cost of care. (a) Except for chemical 
162.3 	dependency services provided under sections 254B.01 to 254B.09, the client's county 
162.4 	shall pay to the state of Minnesota a portion of the cost of care provided in a regional 
162.5 	treatment center or a state nursing facility to a client legally settled in that county. A 
162.6 	county's payment shall be made from the county's own sources of revenue and payments 
162.7 	shall be paid as follows: payments to the state from the county shall equal 20 percenta 
162.8 	percentage of the cost of care, as determined by the commissioner, for each day, or the 
162.9 	portion thereof, that the client spends at a regional treatment center or a state nursing 
162.10 	facility. according to the following schedule:
162.11 	(1) zero percent for the first 30 days;
162.12 	(2) 20 percent for days 31 to 60; and
162.13 	(3) 50 percent for any days over 60.
162.14 	(b) The increase in the county portion for cost of care under paragraph (a), clause 
162.15 	(3), shall be imposed when the treatment facility has determined that it is clinically 
162.16 	appropriate for the client to be discharged.
162.17 	(c) If payments received by the state under sections 246.50 to 246.53 exceed 80 
162.18 	percent of the cost of care for days 31 to 60, or 50 percent for days over 60, the county 
162.19 	shall be responsible for paying the state only the remaining amount. The county shall 
162.20 	not be entitled to reimbursement from the client, the client's estate, or from the client's 
162.21 	relatives, except as provided in section 246.53. No such payments shall be made for any 
162.22 	client who was last committed prior to July 1, 1947.

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

162.24 	Sec. 10. Minnesota Statutes 2006, section 246.54, subdivision 2, is amended to read:
162.25 		Subd. 2.Exceptions. (a) Subdivision 1 does not apply to services provided at the 
162.26 	Minnesota Security Hospital, the Minnesota sex offender program, or the Minnesota 
162.27 	extended treatment options program. For services at these facilities, a county's payment 
162.28 	shall be made from the county's own sources of revenue and payments shall be paid as 
162.29 	follows: payments to the state from the county shall equal ten percent of the cost of care, 
162.30 	as determined by the commissioner, for each day, or the portion thereof, that the client 
162.31 	spends at the facility. If payments received by the state under sections 246.50 to 246.53
162.32 	exceed 90 percent of the cost of care, the county shall be responsible for paying the state 
162.33 	only the remaining amount. The county shall not be entitled to reimbursement from the 
162.34 	client, the client's estate, or from the client's relatives, except as provided in section 246.53. 
163.1 	(b) Regardless of the facility to which the client is committed, subdivision 1 does not 
163.2 	apply to the following individuals:
163.3 	(1) clients who are committed as mentally ill and dangerous under section 253B.02, 
163.4 	subdivision 17;
163.5 	(2) clients who are committed as sexual psychopathic personalities under section 
163.6 	253B.02, subdivision 18b; and
163.7 	(3) clients who are committed as sexually dangerous persons under section 253B.02, 
163.8 	subdivision 18c.
163.9 	For each of the individuals in clauses (1) to (3), the payment by the county to the state 
163.10 	shall equal ten percent of the cost of care for each day as determined by the commissioner.

163.11 	Sec. 11. Minnesota Statutes 2006, section 253B.185, is amended by adding a 
163.12 	subdivision to read:
163.13 		Subd. 8.Petition and report required. (a) Within 120 days of receipt of a 
163.14 	preliminary determination from a court under section 609.1351, subdivision 1, a 
163.15 	prepetition screening report under section 253B.185, or a referral from the attorney 
163.16 	general or commissioner of corrections as a part of the release planning, a county attorney, 
163.17 	or, upon referral from the county attorney, the attorney general, shall determine whether 
163.18 	good cause exists to file a petition under section 253B.185, and if good cause exists, the 
163.19 	county attorney or attorney general shall file the petition with the court.
163.20 	(b) Failure to meet the requirements of paragraph (a) does not bar filing a petition 
163.21 	under section 253B.185 any time good cause for such a petition exists.
163.22 	(c) By February 1 of each year, the commissioner of human services shall annually 
163.23 	report to the respective chairs of the divisions or committees of the senate and house 
163.24 	of representatives that oversee human services finance regarding compliance with this 
163.25 	subdivision.

163.26 	Sec. 12. [254A.20] CHEMICAL USE ASSESSMENTS.
163.27 		Subdivision 1.Persons arrested outside of home county. When a chemical use 
163.28 	assessment is required under Minnesota Rules, parts 9530.6600 to 9530.6655, for a person 
163.29 	who is arrested and taken into custody by a peace officer outside of the person's county 
163.30 	of residence, the assessment must be completed by the person's county of residence no 
163.31 	later than three weeks after the assessment is initially requested. If the assessment is 
163.32 	not performed within this time limit, the county where the person is to be sentenced 
163.33 	shall perform the assessment. The county of financial responsibility is determined under 
163.34 	chapter 256G.
164.1 		Subd. 2.Probation officer as contact. When a chemical use assessment is required 
164.2 	under Minnesota Rules, parts 9530.6600 to 9530.6655, for a person who is on probation 
164.3 	or under other correctional supervision, the assessor, either orally or in writing, shall 
164.4 	contact the person's probation officer to verify or supplement the information provided 
164.5 	by the person.
164.6 		Subd. 3.Financial conflicts of interest. (a) Except as provided in paragraph (b), an 
164.7 	assessor conducting a chemical use assessment under Minnesota Rules, parts 9530.6600 
164.8 	to 9530.6655, may not have any direct or shared financial interest or referral relationship 
164.9 	resulting in shared financial gain with a treatment provider.
164.10 	(b) A county may contract with an assessor having a conflict described in paragraph 
164.11 	(a) if the county documents that:
164.12 	(1) the assessor is employed by a culturally specific service provider or a service 
164.13 	provider with a program designed to treat individuals of a specific age, sex, or sexual 
164.14 	preference; 
164.15 	(2) the county does not employ a sufficient number of qualified assessors and the 
164.16 	only qualified assessors available in the county have a direct or shared financial interest or 
164.17 	a referral relationship resulting in shared financial gain with a treatment provider; or 
164.18 	(3) the county social service agency has an existing relationship with an assessor 
164.19 	or service provider and elects to enter into a contract with that assessor to provide both 
164.20 	assessment and treatment under circumstances specified in the county's contract, provided 
164.21 	the county retains responsibility for making placement decisions.
164.22 	An assessor under this paragraph may not place clients in treatment. The assessor 
164.23 	shall gather required information and provide it to the county along with any required 
164.24 	documentation. The county shall make all placement decisions for clients assessed by 
164.25 	assessors under this paragraph.

164.26 	EFFECTIVE DATE. This section is effective July 1, 2007, except for subdivision 
164.27 	3, which is effective the day following final enactment.

164.28 	Sec. 13. [254A.25] DUTIES OF COMMISSIONER RELATED TO CHEMICAL 
164.29 	HEALTH.
164.30 	The commissioner shall:
164.31 	(1) annually distribute information to chemical health assessors on best practices in 
164.32 	assessments, including model instruments for adults and adolescents;
164.33 	(2) monitor the compliance of local agencies with assessment and referral rules;
164.34 	(3) develop a directory that identifies key characteristics of each licensed chemical 
164.35 	dependency treatment program;
165.1 	(4) work with the commissioner of health to develop guidelines and training 
165.2 	materials for health care organizations on the use of brief interventions for alcohol and 
165.3 	chemical substance abuse;
165.4 	(5) provide local agencies with examples of best practices for addressing needs of 
165.5 	persons being considered for repeat placements into publicly funded treatment;
165.6 	(6) identify best practices to help local agencies monitor the progress of clients 
165.7 	placed in treatment;
165.8 	(7) periodically provide local agencies with statewide information on treatment 
165.9 	outcomes; and
165.10 	(8) post copies of state licensing reviews  at an online location where they may be 
165.11 	reviewed by agencies that make client placements.

165.12 	Sec. 14. Minnesota Statutes 2006, section 254B.02, subdivision 3, is amended to read:
165.13 		Subd. 3.Reserve account. The commissioner shall allocate money from the 
165.14 	reserve account to counties that, during the current fiscal year, have met or exceeded the 
165.15 	base level of expenditures for eligible chemical dependency services from local money. 
165.16 	The commissioner shall establish the base level for fiscal year 1988 as the amount of local 
165.17 	money used for eligible services in calendar year 1986. In later years, the base level 
165.18 	must be increased in the same proportion as state appropriations to implement Laws 
165.19 	1986, chapter 394, sections 8 to 20, are increased, except the county expenditure under 
165.20 	subdivision 2 shall not exceed 55 percent of the total allocation for fiscal year 2008; 50 
165.21 	percent in fiscal year 2009; 45 percent in fiscal year 2010; and 40 percent in fiscal year 
165.22 	2011. Thereafter the expenditure shall decrease by five percent each fiscal year until the 
165.23 	maximum county match is 15 percent. The base level must be decreased if the fund balance 
165.24 	from which allocations are made under section 254B.02, subdivision 1, is decreased in 
165.25 	later years. The local match rate for the reserve account is the same rate as applied to the 
165.26 	initial allocation. Reserve account payments must not be included when calculating the 
165.27 	county adjustments made according to subdivision 2. For counties providing medical 
165.28 	assistance or general assistance medical care through managed care plans on January 1, 
165.29 	1996, the base year is fiscal year 1995. For counties beginning provision of managed 
165.30 	care after January 1, 1996, the base year is the most recent fiscal year before enrollment 
165.31 	in managed care begins. For counties providing managed care, the base level will be 
165.32 	increased or decreased in proportion to changes in the fund balance from which allocations 
165.33 	are made under subdivision 2, but will be additionally increased or decreased in proportion 
165.34 	to the change in county adjusted population made in subdivision 1, paragraphs (b) and (c). 
165.35 	Effective July 1, 2001, at the end of each biennium, any funds deposited in the reserve 
166.1 	account funds in excess of those needed to meet obligations incurred under this section 
166.2 	and sections 254B.06 and 254B.09 shall cancel to the general fund. 

166.3 	Sec. 15. [256B.0615] MENTAL HEALTH CERTIFIED PEER SPECIALIST.
166.4 		Subdivision 1.Scope. Medical assistance covers mental health certified peers 
166.5 	specialists services, as established in subdivision 2, subject to federal approval, if provided 
166.6 	to recipients who are eligible for services under sections 256B.0622 and 256B.0623, 
166.7 	and are provided by a certified peer specialist who has completed the training under 
166.8 	subdivision 5.
166.9 		Subd. 2.Establishment. The commissioner of human services shall establish a 
166.10 	certified peer specialists program model, which:
166.11 	(1) provides nonclinical peer support counseling by certified peer specialists;
166.12 	(2) provides a part of a wraparound continuum of services in conjunction with 
166.13 	other community mental health services;
166.14 	(3) is individualized to the consumer; and
166.15 	(4) promotes socialization, recovery, self-sufficiency, self-advocacy, development of 
166.16 	natural supports, and maintenance of skills learned in other support services.
166.17 		Subd. 3.Eligibility. Peer support services may be made available to consumers 
166.18 	of the intensive rehabilitative mental health services under section 256B.0622 and adult 
166.19 	rehabilitative mental health services under section 256B.0623.
166.20 		Subd. 4.Peer support specialist program providers. The commissioner shall 
166.21 	develop a process to certify peer support specialist programs, in accordance with the 
166.22 	federal guidelines, in order for the program to bill for reimbursable services. Peer support 
166.23 	programs may be freestanding or within existing mental health community provider 
166.24 	centers.
166.25 		Subd. 5.Certified peer specialist training and certification. The commissioner 
166.26 	of human services shall develop a training and certification process for certified peer 
166.27 	specialists, who must be at least 21 years of age and have a high school diploma or its 
166.28 	equivalent. The candidates must have had a primary diagnosis of mental illness, be a 
166.29 	current or former consumer of mental health services, and must demonstrate leadership 
166.30 	and advocacy skills and a strong dedication to recovery. The training curriculum must 
166.31 	teach participating consumers specific skills relevant to providing peer support to other 
166.32 	consumers. In addition to initial training and certification, the commissioner shall develop 
166.33 	ongoing continuing educational workshops on pertinent issues related to peer support 
166.34 	counseling.

167.1 	Sec. 16. Minnesota Statutes 2006, section 256B.0622, subdivision 2, is amended to 
167.2 	read:
167.3 		Subd. 2.Definitions. For purposes of this section, the following terms have the 
167.4 	meanings given them.
167.5 	(a) "Intensive nonresidential rehabilitative mental health services" means adult 
167.6 	rehabilitative mental health services as defined in section 256B.0623, subdivision 2, 
167.7 	paragraph (a), except that these services are provided by a multidisciplinary staff using 
167.8 	a total team approach consistent with assertive community treatment, the Fairweather 
167.9 	Lodge treatment model, as defined by the standards established by the National Coalition 
167.10 	for Community Living, and other evidence-based practices, and directed to recipients with 
167.11 	a serious mental illness who require intensive services.
167.12 	(b) "Intensive residential rehabilitative mental health services" means short-term, 
167.13 	time-limited services provided in a residential setting to recipients who are in need of 
167.14 	more restrictive settings and are at risk of significant functional deterioration if they do 
167.15 	not receive these services. Services are designed to develop and enhance psychiatric 
167.16 	stability, personal and emotional adjustment, self-sufficiency, and skills to live in a more 
167.17 	independent setting. Services must be directed toward a targeted discharge date with 
167.18 	specified client outcomes and must be consistent with the Fairweather Lodge treatment 
167.19 	model as defined in paragraph (a), and other evidence-based practices.
167.20 	(c) "Evidence-based practices" are nationally recognized mental health services that 
167.21 	are proven by substantial research to be effective in helping individuals with serious 
167.22 	mental illness obtain specific treatment goals.
167.23 	(d) "Overnight staff" means a member of the intensive residential rehabilitative 
167.24 	mental health treatment team who is responsible during hours when recipients are 
167.25 	typically asleep.
167.26 	(e) "Treatment team" means all staff who provide services under this section 
167.27 	to recipients. At a minimum, this includes the clinical supervisor, mental health 
167.28 	professionals, as defined in section 245.462, subdivision 18, clauses (1) to (5); mental 
167.29 	health practitioners, and as defined in section 245.462, subdivision 17; mental health 
167.30 	rehabilitation workers under section 256B.0623, subdivision 5, clause (3); and certified 
167.31 	peer specialists under section 256B.0615.

167.32 	Sec. 17. Minnesota Statutes 2006, section 256B.0623, subdivision 5, is amended to 
167.33 	read:
168.1 		Subd. 5.Qualifications of provider staff. Adult rehabilitative mental health 
168.2 	services must be provided by qualified individual provider staff of a certified provider 
168.3 	entity. Individual provider staff must be qualified under one of the following criteria:
168.4 	(1) a mental health professional as defined in section 245.462, subdivision 18, 
168.5 	clauses (1) to (5). If the recipient has a current diagnostic assessment by a licensed 
168.6 	mental health professional as defined in section 245.462, subdivision 18, clauses (1) to 
168.7 	(5), recommending receipt of adult mental health rehabilitative services, the definition of 
168.8 	mental health professional for purposes of this section includes a person who is qualified 
168.9 	under section 245.462, subdivision 18, clause (6), and who holds a current and valid 
168.10 	national certification as a certified rehabilitation counselor or certified psychosocial 
168.11 	rehabilitation practitioner; 
168.12 	(2) a mental health practitioner as defined in section 245.462, subdivision 17. The 
168.13 	mental health practitioner must work under the clinical supervision of a mental health 
168.14 	professional; or
168.15 	(3) a certified peer specialist under section 256B.0615. The certified peer specialist 
168.16 	must work under the clinical supervision of a mental health professional; or
168.17 	(3) (4) a mental health rehabilitation worker. A mental health rehabilitation worker 
168.18 	means a staff person working under the direction of a mental health practitioner or mental 
168.19 	health professional and under the clinical supervision of a mental health professional in 
168.20 	the implementation of rehabilitative mental health services as identified in the recipient's 
168.21 	individual treatment plan who:
168.22 	(i) is at least 21 years of age;
168.23 	(ii) has a high school diploma or equivalent;
168.24 	(iii) has successfully completed 30 hours of training during the past two years in all 
168.25 	of the following areas: recipient rights, recipient-centered individual treatment planning, 
168.26 	behavioral terminology, mental illness, co-occurring mental illness and substance abuse, 
168.27 	psychotropic medications and side effects, functional assessment, local community 
168.28 	resources, adult vulnerability, recipient confidentiality; and
168.29 	(iv) meets the qualifications in subitem (A) or (B):
168.30 	(A) has an associate of arts degree in one of the behavioral sciences or human 
168.31 	services, or is a registered nurse without a bachelor's degree, or who within the previous 
168.32 	ten years has:
168.33 	(1) three years of personal life experience with serious and persistent mental illness;
168.34 	(2) three years of life experience as a primary caregiver to an adult with a serious 
168.35 	mental illness or traumatic brain injury; or
169.1 	(3) 4,000 hours of supervised paid work experience in the delivery of mental health 
169.2 	services to adults with a serious mental illness or traumatic brain injury; or
169.3 	(B)(1) is fluent in the non-English language or competent in the culture of the 
169.4 	ethnic group to which at least 20 percent of the mental health rehabilitation worker's 
169.5 	clients belong;
169.6 	(2) receives during the first 2,000 hours of work, monthly documented individual 
169.7 	clinical supervision by a mental health professional;
169.8 	(3) has 18 hours of documented field supervision by a mental health professional 
169.9 	or practitioner during the first 160 hours of contact work with recipients, and at least six 
169.10 	hours of field supervision quarterly during the following year;
169.11 	(4) has review and cosignature of charting of recipient contacts during field 
169.12 	supervision by a mental health professional or practitioner; and
169.13 	(5) has 40 hours of additional continuing education on mental health topics during 
169.14 	the first year of employment.

169.15 	Sec. 18. Minnesota Statutes 2006, section 256B.0625, is amended by adding a 
169.16 	subdivision to read:
169.17 		Subd. 5l.Intensive mental health outpatient treatment. Medical assistance 
169.18 	covers intensive mental health outpatient treatment for dialectical behavioral therapy for 
169.19 	adults. The commissioner shall establish:
169.20 	(1) certification procedures to ensure that providers of these services are qualified; 
169.21 	and
169.22 	(2) treatment protocols including required service components and criteria for 
169.23 	admission, continued treatment, and discharge.

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

169.27 	Sec. 19. Minnesota Statutes 2006, section 256B.0625, subdivision 20, is amended to 
169.28 	read:
169.29 		Subd. 20.Mental health case management. (a) To the extent authorized by rule 
169.30 	of the state agency, medical assistance covers case management services to persons with 
169.31 	serious and persistent mental illness and children with severe emotional disturbance. 
169.32 	Services provided under this section must meet the relevant standards in sections 245.461
169.33 	to 245.4887, the Comprehensive Adult and Children's Mental Health Acts, Minnesota 
169.34 	Rules, parts 9520.0900 to 9520.0926, and 9505.0322, excluding subpart 10. 
170.1 	(b) Entities meeting program standards set out in rules governing family community 
170.2 	support services as defined in section 245.4871, subdivision 17, are eligible for medical 
170.3 	assistance reimbursement for case management services for children with severe 
170.4 	emotional disturbance when these services meet the program standards in Minnesota 
170.5 	Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10. 
170.6 	(c) Medical assistance and MinnesotaCare payment for mental health case 
170.7 	management shall be made on a monthly basis. In order to receive payment for an eligible 
170.8 	child, the provider must document at least a face-to-face contact with the child, the child's 
170.9 	parents, or the child's legal representative. To receive payment for an eligible adult, the 
170.10 	provider must document:
170.11 	(1) at least a face-to-face contact with the adult or the adult's legal representative; or
170.12 	(2) at least a telephone contact with the adult or the adult's legal representative and 
170.13 	document a face-to-face contact with the adult or the adult's legal representative within 
170.14 	the preceding two months.
170.15 	(d) Payment for mental health case management provided by county or state staff 
170.16 	shall be based on the monthly rate methodology under section 256B.094, subdivision 6, 
170.17 	paragraph (b), with separate rates calculated for child welfare and mental health, and 
170.18 	within mental health, separate rates for children and adults. 
170.19 	(e) Payment for mental health case management provided by Indian health services 
170.20 	or by agencies operated by Indian tribes may be made according to this section or other 
170.21 	relevant federally approved rate setting methodology.
170.22 	(f) Payment for mental health case management provided by vendors who contract 
170.23 	with a county or Indian tribe shall be based on a monthly rate negotiated by the host county 
170.24 	or tribe. The negotiated rate must not exceed the rate charged by the vendor for the same 
170.25 	service to other payers. If the service is provided by a team of contracted vendors, the 
170.26 	county or tribe may negotiate a team rate with a vendor who is a member of the team. The 
170.27 	team shall determine how to distribute the rate among its members. No reimbursement 
170.28 	received by contracted vendors shall be returned to the county or tribe, except to reimburse 
170.29 	the county or tribe for advance funding provided by the county or tribe to the vendor.
170.30 	(g) If the service is provided by a team which includes contracted vendors, tribal 
170.31 	staff, and county or state staff, the costs for county or state staff participation in the team 
170.32 	shall be included in the rate for county-provided services. In this case, the contracted 
170.33 	vendor, the tribal agency, and the county may each receive separate payment for services 
170.34 	provided by each entity in the same month. In order to prevent duplication of services, 
170.35 	each entity must document, in the recipient's file, the need for team case management and 
170.36 	a description of the roles of the team members.
171.1 	(h) The commissioner shall calculate the nonfederal share of actual medical 
171.2 	assistance and general assistance medical care payments for each county, based on the 
171.3 	higher of calendar year 1995 or 1996, by service date, project that amount forward to 1999, 
171.4 	and transfer one-half of the result from medical assistance and general assistance medical 
171.5 	care to each county's mental health grants under section 256E.12 for calendar year 1999. 
171.6 	The annualized minimum amount added to each county's mental health grant shall be 
171.7 	$3,000 per year for children and $5,000 per year for adults. The commissioner may reduce 
171.8 	the statewide growth factor in order to fund these minimums. The annualized total amount 
171.9 	transferred shall become part of the base for future mental health grants for each county. 
171.10 	(i)(h) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of 
171.11 	costs for mental health case management shall be provided by the recipient's county of 
171.12 	responsibility, as defined in sections 256G.01 to 256G.12, from sources other than federal 
171.13 	funds or funds used to match other federal funds. If the service is provided by a tribal 
171.14 	agency, the nonfederal share, if any, shall be provided by the recipient's tribe. When this 
171.15 	service is paid by the state without a federal share through fee-for-service, 50 percent of 
171.16 	the cost shall be provided by the recipient's county of responsibility.
171.17 	(i) Notwithstanding any administrative rule to the contrary, prepaid medical 
171.18 	assistance, general assistance medical care, and MinnesotaCare include mental health case 
171.19 	management. When the service is provided through prepaid capitation, the nonfederal 
171.20 	share is paid by the state and the county pays no share.
171.21 	(j) The commissioner may suspend, reduce, or terminate the reimbursement to a 
171.22 	provider that does not meet the reporting or other requirements of this section. The county 
171.23 	of responsibility, as defined in sections 256G.01 to 256G.12, or, if applicable, the tribal 
171.24 	agency, is responsible for any federal disallowances. The county or tribe may share this 
171.25 	responsibility with its contracted vendors. 
171.26 	(k) The commissioner shall set aside a portion of the federal funds earned for county 
171.27 	expenditures under this section to repay the special revenue maximization account under 
171.28 	section 256.01, subdivision 2, clause (15). The repayment is limited to: 
171.29 	(1) the costs of developing and implementing this section; and
171.30 	(2) programming the information systems.
171.31 	(l) Payments to counties and tribal agencies for case management expenditures 
171.32 	under this section shall only be made from federal earnings from services provided 
171.33 	under this section. When this service is paid by the state without a federal share through 
171.34 	fee-for-service, 50 percent of the cost shall be provided by the state. Payments to 
171.35 	county-contracted vendors shall include both the federal earnings, the state share,  and the 
171.36 	county share.
172.1 	(m) Notwithstanding section 256B.041, county payments for the cost of mental 
172.2 	health case management services provided by county or state staff shall not be made 
172.3 	to the commissioner of finance. For the purposes of mental health case management 
172.4 	services provided by county or state staff under this section, the centralized disbursement 
172.5 	of payments to counties under section 256B.041 consists only of federal earnings from 
172.6 	services provided under this section. 
172.7 	(n)(m) Case management services under this subdivision do not include therapy, 
172.8 	treatment, legal, or outreach services.
172.9 	(o)(n) If the recipient is a resident of a nursing facility, intermediate care facility, 
172.10 	or hospital, and the recipient's institutional care is paid by medical assistance, payment 
172.11 	for case management services under this subdivision is limited to the last 180 days of 
172.12 	the recipient's residency in that facility and may not exceed more than six months in a 
172.13 	calendar year.
172.14 	(p)(o) Payment for case management services under this subdivision shall not 
172.15 	duplicate payments made under other program authorities for the same purpose.
172.16 	(q) By July 1, 2000, the commissioner shall evaluate the effectiveness of the changes 
172.17 	required by this section, including changes in number of persons receiving mental health 
172.18 	case management, changes in hours of service per person, and changes in caseload size.
172.19 	(r) For each calendar year beginning with the calendar year 2001, the annualized 
172.20 	amount of state funds for each county determined under paragraph (h) shall be adjusted by 
172.21 	the county's percentage change in the average number of clients per month who received 
172.22 	case management under this section during the fiscal year that ended six months prior to 
172.23 	the calendar year in question, in comparison to the prior fiscal year.
172.24 	(s) For counties receiving the minimum allocation of $3,000 or $5,000 described 
172.25 	in paragraph (h), the adjustment in paragraph (s) shall be determined so that the county 
172.26 	receives the higher of the following amounts:
172.27 	(1) a continuation of the minimum allocation in paragraph (h); or
172.28 	(2) an amount based on that county's average number of clients per month who 
172.29 	received case management under this section during the fiscal year that ended six months 
172.30 	prior to the calendar year in question, times the average statewide grant per person per 
172.31 	month for counties not receiving the minimum allocation.
172.32 	(t) The adjustments in paragraphs (s) and (t) shall be calculated separately for 
172.33 	children and adults.

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

173.1 	Sec. 20. Minnesota Statutes 2006, section 256B.0943, subdivision 8, is amended to 
173.2 	read:
173.3 		Subd. 8.Required preservice and continuing education. (a) A provider entity 
173.4 	shall establish a plan to provide preservice and continuing education for staff. The plan 
173.5 	must clearly describe the type of training necessary to maintain current skills and obtain 
173.6 	new skills and that relates to the provider entity's goals and objectives for services offered.
173.7 	(b) A provider that employs a mental health behavioral aide under this section must 
173.8 	require the mental health behavioral aide to complete 30 hours of preservice training. The 
173.9 	preservice training must include topics specified in Minnesota Rules, part 9535.4068, 
173.10 	subparts 1 and 2, and parent team training. The preservice training must include 15 hours 
173.11 	of in-person training of a mental health behavioral aide in mental health services delivery 
173.12 	and eight hours of parent team training. Curricula for parent team training must be 
173.13 	approved in advance by the commissioner. Components of parent team training include:
173.14 	(1) partnering with parents;
173.15 	(2) fundamentals of family support;
173.16 	(3) fundamentals of policy and decision making;
173.17 	(4) defining equal partnership;
173.18 	(5) complexities of the parent and service provider partnership in multiple service 
173.19 	delivery systems due to system strengths and weaknesses;
173.20 	(6) sibling impacts;
173.21 	(7) support networks; and
173.22 	(8) community resources.
173.23 	(c) A provider entity that employs a mental health practitioner and a mental health 
173.24 	behavioral aide to provide children's therapeutic services and supports under this section 
173.25 	must require the mental health practitioner and mental health behavioral aide to complete 
173.26 	20 hours of continuing education every two calendar years. The continuing education 
173.27 	must be related to serving the needs of a child with emotional disturbance in the child's 
173.28 	home environment and the child's family. The topics covered in orientation and training 
173.29 	must conform to Minnesota Rules, part 9535.4068.
173.30 	(d) The provider entity must document the mental health practitioner's or mental 
173.31 	health behavioral aide's annual completion of the required continuing education. The 
173.32 	documentation must include the date, subject, and number of hours of the continuing 
173.33 	education, and attendance records, as verified by the staff member's signature, job 
173.34 	title, and the instructor's name. The provider entity must keep documentation for each 
173.35 	employee, including records of attendance at professional workshops and conferences, 
173.36 	at a central location and in the employee's personnel file.

174.1 	Sec. 21. Minnesota Statutes 2006, section 256B.0945, subdivision 4, is amended to 
174.2 	read:
174.3 		Subd. 4.Payment rates. (a) Notwithstanding sections 256B.19 and 256B.041, 
174.4 	payments to counties for residential services provided by a residential facility shall only 
174.5 	be made of federal earnings for services provided under this section, and the nonfederal 
174.6 	share of costs for services provided under this section shall be paid by the county from 
174.7 	sources other than federal funds or funds used to match other federal funds. Payment to 
174.8 	counties for services provided according to this section shall be a proportion of the per 
174.9 	day contract rate that relates to rehabilitative mental health services and shall not include 
174.10 	payment for costs or services that are billed to the IV-E program as room and board. 
174.11 	(b) Per diem rates paid to providers under this section by prepaid plans shall be the 
174.12 	proportion of the per-day contract rate that relates to rehabilitative mental health services 
174.13 	and shall not include payment for group foster care costs or services that are billed to the 
174.14 	county of financial responsibility.
174.15 	(c) The commissioner shall set aside a portion not to exceed five percent of the 
174.16 	federal funds earned for county expenditures under this section to cover the state costs of 
174.17 	administering this section. Any unexpended funds from the set-aside shall be distributed 
174.18 	to the counties in proportion to their earnings under this section.

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

174.20 	Sec. 22. Minnesota Statutes 2006, section 256B.69, subdivision 4, is amended to read:
174.21 		Subd. 4.Limitation of choice. (a) The commissioner shall develop criteria to 
174.22 	determine when limitation of choice may be implemented in the experimental counties. 
174.23 	The criteria shall ensure that all eligible individuals in the county have continuing access 
174.24 	to the full range of medical assistance services as specified in subdivision 6.
174.25 	(b) The commissioner shall exempt the following persons from participation in the 
174.26 	project, in addition to those who do not meet the criteria for limitation of choice:
174.27 	(1) persons eligible for medical assistance according to section 256B.055, 
174.28 	subdivision 1;
174.29 	(2) persons eligible for medical assistance due to blindness or disability as 
174.30 	determined by the Social Security Administration or the state medical review team, unless:
174.31 	(i) they are 65 years of age or older; or
174.32 	(ii) they reside in Itasca County or they reside in a county in which the commissioner 
174.33 	conducts a pilot project under a waiver granted pursuant to section 1115 of the Social 
174.34 	Security Act;
175.1 	(3) recipients who currently have private coverage through a health maintenance 
175.2 	organization;
175.3 	(4) recipients who are eligible for medical assistance by spending down excess 
175.4 	income for medical expenses other than the nursing facility per diem expense;
175.5 	(5) recipients who receive benefits under the Refugee Assistance Program, 
175.6 	established under United States Code, title 8, section 1522(e);
175.7 	(6) children who are both determined to be severely emotionally disturbed and 
175.8 	receiving case management services according to section 256B.0625, subdivision 20, 
175.9 	except children who are eligible for and who decline enrollment in an approved preferred 
175.10 	integrated network under section 245.4682;
175.11 	(7) adults who are both determined to be seriously and persistently mentally ill and 
175.12 	received case management services according to section 256B.0625, subdivision 20;
175.13 	(8) persons eligible for medical assistance according to section 256B.057, 
175.14 	subdivision 10; and
175.15 	(9) persons with access to cost-effective employer-sponsored private health 
175.16 	insurance or persons enrolled in a non-Medicare individual health plan determined to be 
175.17 	cost-effective according to section 256B.0625, subdivision 15.
175.18 	Children under age 21 who are in foster placement may enroll in the project on an elective 
175.19 	basis. Individuals excluded under clauses (1), (6), and (7) may choose to enroll on an 
175.20 	elective basis. The commissioner may enroll recipients in the prepaid medical assistance 
175.21 	program for seniors who are (1) age 65 and over, and (2) eligible for medical assistance by 
175.22 	spending down excess income.
175.23 	(c) The commissioner may allow persons with a one-month spenddown who are 
175.24 	otherwise eligible to enroll to voluntarily enroll or remain enrolled, if they elect to prepay 
175.25 	their monthly spenddown to the state.
175.26 	(d) The commissioner may require those individuals to enroll in the prepaid medical 
175.27 	assistance program who otherwise would have been excluded under paragraph (b), clauses 
175.28 	(1), (3), and (8), and under Minnesota Rules, part 9500.1452, subpart 2, items H, K, and L.
175.29 	(e) Before limitation of choice is implemented, eligible individuals shall be notified 
175.30 	and after notification, shall be allowed to choose only among demonstration providers. 
175.31 	The commissioner may assign an individual with private coverage through a health 
175.32 	maintenance organization, to the same health maintenance organization for medical 
175.33 	assistance coverage, if the health maintenance organization is under contract for medical 
175.34 	assistance in the individual's county of residence. After initially choosing a provider, 
175.35 	the recipient is allowed to change that choice only at specified times as allowed by the 
175.36 	commissioner. If a demonstration provider ends participation in the project for any reason, 
176.1 	a recipient enrolled with that provider must select a new provider but may change providers 
176.2 	without cause once more within the first 60 days after enrollment with the second provider.
176.3 	(f) An infant born to a woman who is eligible for and receiving medical assistance 
176.4 	and who is enrolled in the prepaid medical assistance program shall be retroactively 
176.5 	enrolled to the month of birth in the same managed care plan as the mother once the 
176.6 	child is enrolled in medical assistance unless the child is determined to be excluded from 
176.7 	enrollment in a prepaid plan under this section.

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

176.9 	Sec. 23. Minnesota Statutes 2006, section 256B.69, subdivision 5g, is amended to read:
176.10 		Subd. 5g.Payment for covered services. For services rendered on or after January 
176.11 	1, 2003, the total payment made to managed care plans for providing covered services 
176.12 	under the medical assistance and general assistance medical care programs is reduced by 
176.13 	.5 percent from their current statutory rates. This provision excludes payments for nursing 
176.14 	home services, home and community-based waivers, and payments to demonstration 
176.15 	projects for persons with disabilities, and mental health services added as covered benefits 
176.16 	after December 31, 2007.

176.17 	Sec. 24. Minnesota Statutes 2006, section 256B.69, subdivision 5h, is amended to read:
176.18 		Subd. 5h.Payment reduction. In addition to the reduction in subdivision 5g, 
176.19 	the total payment made to managed care plans under the medical assistance program is 
176.20 	reduced 1.0 percent for services provided on or after October 1, 2003, and an additional 
176.21 	1.0 percent for services provided on or after January 1, 2004. This provision excludes 
176.22 	payments for nursing home services, home and community-based waivers, and payments 
176.23 	to demonstration projects for persons with disabilities, and mental health services added as 
176.24 	covered benefits after December 31, 2007.

176.25 	Sec. 25. Minnesota Statutes 2006, section 256B.763, is amended to read:
176.26 	256B.763 CRITICAL ACCESS MENTAL HEALTH RATE INCREASE.
176.27 	(a) For services defined in paragraph (b) and rendered on or after July 1, 2007, 
176.28 	payment rates shall be increased by 23.7 percent over the rates in effect on January 1, 
176.29 	2006, for:
176.30 	(1) psychiatrists and advanced practice registered nurses with a psychiatric specialty;
176.31 	(2) community mental health centers under section 256B.0625, subdivision 5; and
177.1 	(3) mental health clinics and centers certified under Minnesota Rules, parts 
177.2 	9520.0750 to 9520.0870, or hospital outpatient psychiatric departments that are designated 
177.3 	as essential community providers under section 62Q.19.
177.4 	(b) This increase applies to group skills training when provided as a component of 
177.5 	children's therapeutic services and support, psychotherapy, medication management, 
177.6 	evaluation and management, diagnostic assessment, explanation of findings, psychological 
177.7 	testing, neuropsychological services, direction of behavioral aides, and inpatient 
177.8 	consultation.
177.9 	(c) This increase does not apply to rates that are governed by section 256B.0625, 
177.10 	subdivision 30, or 256B.761, paragraph (b), other cost-based rates, rates that are 
177.11 	negotiated with the county, rates that are established by the federal government, or rates 
177.12 	that increased between January 1, 2004, and January 1, 2005.
177.13 	(d) The commissioner shall adjust rates paid to prepaid health plans under contract 
177.14 	with the commissioner to reflect the rate increases provided in paragraphparagraphs (a), 
177.15 	(e), and (f). The prepaid health plan must pass this rate increase to the providers identified 
177.16 	in paragraphparagraphs (a), (e), (f), and (g).
177.17 	(e) Payment rates shall be increased by 23.7 percent over the rates in effect on 
177.18 	January 1, 2006, for:
177.19 	(1) medication education services provided on or after January 1, 2008, by adult 
177.20 	rehabilitative mental health services providers certified under section 256B.0623; and
177.21 	(2) mental health behavioral aide services provided on or after January 1, 2008, by 
177.22 	children's therapeutic services and support providers certified under section 256B.0943.
177.23 	(f) For services defined in paragraph (b) and rendered on or after January 1, 2008, by 
177.24 	children's therapeutic services and support providers certified under section 256B.0943 
177.25 	and not already included in paragraph (a), payment rates shall be increased by 23.7 percent 
177.26 	over the rates in effect on January 1, 2006.
177.27 	(g) Payment rates shall be increased by 2.3 percent over the rates in effect on 
177.28 	December 31, 2007, for individual and family skills training provided on or after January 
177.29 	1, 2008, by children's therapeutic services and support providers certified under section 
177.30 	256B.0943.

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

177.32 	Sec. 26. Minnesota Statutes 2006, section 256D.03, subdivision 4, is amended to read:
177.33 		Subd. 4.General assistance medical care; services. (a)(i) For a person who is 
177.34 	eligible under subdivision 3, paragraph (a), clause (2), item (i), general assistance medical 
177.35 	care covers, except as provided in paragraph (c):
178.1 	(1) inpatient hospital services;
178.2 	(2) outpatient hospital services;
178.3 	(3) services provided by Medicare certified rehabilitation agencies;
178.4 	(4) prescription drugs and other products recommended through the process 
178.5 	established in section 256B.0625, subdivision 13;
178.6 	(5) equipment necessary to administer insulin and diagnostic supplies and equipment 
178.7 	for diabetics to monitor blood sugar level;
178.8 	(6) eyeglasses and eye examinations provided by a physician or optometrist;
178.9 	(7) hearing aids;
178.10 	(8) prosthetic devices;
178.11 	(9) laboratory and X-ray services;
178.12 	(10) physician's services;
178.13 	(11) medical transportation except special transportation;
178.14 	(12) chiropractic services as covered under the medical assistance program;
178.15 	(13) podiatric services;
178.16 	(14) dental services as covered under the medical assistance program;
178.17 	(15) outpatient services provided by a mental health center or clinic that is under 
178.18 	contract with the county board and is established under section 245.62 mental health 
178.19 	services covered under chapter 256B;
178.20 	(16) day treatment services for mental illness provided under contract with the 
178.21 	county board;
178.22 	(17)(16) prescribed medications for persons who have been diagnosed as mentally 
178.23 	ill as necessary to prevent more restrictive institutionalization;
178.24 	(18) psychological services,(17) medical supplies and equipment, and Medicare 
178.25 	premiums, coinsurance and deductible payments;
178.26 	(19)(18) medical equipment not specifically listed in this paragraph when the use 
178.27 	of the equipment will prevent the need for costlier services that are reimbursable under 
178.28 	this subdivision;
178.29 	(20)(19) services performed by a certified pediatric nurse practitioner, a 
178.30 	certified family nurse practitioner, a certified adult nurse practitioner, a certified 
178.31 	obstetric/gynecological nurse practitioner, a certified neonatal nurse practitioner, or a 
178.32 	certified geriatric nurse practitioner in independent practice, if (1) the service is otherwise 
178.33 	covered under this chapter as a physician service, (2) the service provided on an inpatient 
178.34 	basis is not included as part of the cost for inpatient services included in the operating 
178.35 	payment rate, and (3) the service is within the scope of practice of the nurse practitioner's 
178.36 	license as a registered nurse, as defined in section 148.171;
179.1 	(21)(20) services of a certified public health nurse or a registered nurse practicing 
179.2 	in a public health nursing clinic that is a department of, or that operates under the direct 
179.3 	authority of, a unit of government, if the service is within the scope of practice of the 
179.4 	public health nurse's license as a registered nurse, as defined in section 148.171; and
179.5 	(22)(21) telemedicine consultations, to the extent they are covered under section 
179.6 	256B.0625, subdivision 3b; and.
179.7 	(23) mental health telemedicine and psychiatric consultation as covered under 
179.8 	section 256B.0625, subdivisions 46 and 48.
179.9 	(ii) Effective October 1, 2003, for a person who is eligible under subdivision 3, 
179.10 	paragraph (a), clause (2), item (ii), general assistance medical care coverage is limited 
179.11 	to inpatient hospital services, including physician services provided during the inpatient 
179.12 	hospital stay. A $1,000 deductible is required for each inpatient hospitalization.
179.13 	(b) Effective August 1, 2005, sex reassignment surgery is not covered under this 
179.14 	subdivision.
179.15 	(c) In order to contain costs, the commissioner of human services shall select 
179.16 	vendors of medical care who can provide the most economical care consistent with high 
179.17 	medical standards and shall where possible contract with organizations on a prepaid 
179.18 	capitation basis to provide these services. The commissioner shall consider proposals by 
179.19 	counties and vendors for prepaid health plans, competitive bidding programs, block grants, 
179.20 	or other vendor payment mechanisms designed to provide services in an economical 
179.21 	manner or to control utilization, with safeguards to ensure that necessary services are 
179.22 	provided. Before implementing prepaid programs in counties with a county operated or 
179.23 	affiliated public teaching hospital or a hospital or clinic operated by the University of 
179.24 	Minnesota, the commissioner shall consider the risks the prepaid program creates for the 
179.25 	hospital and allow the county or hospital the opportunity to participate in the program in a 
179.26 	manner that reflects the risk of adverse selection and the nature of the patients served by 
179.27 	the hospital, provided the terms of participation in the program are competitive with the 
179.28 	terms of other participants considering the nature of the population served. Payment for 
179.29 	services provided pursuant to this subdivision shall be as provided to medical assistance 
179.30 	vendors of these services under sections 256B.02, subdivision 8, and 256B.0625. For 
179.31 	payments made during fiscal year 1990 and later years, the commissioner shall consult 
179.32 	with an independent actuary in establishing prepayment rates, but shall retain final control 
179.33 	over the rate methodology.
179.34 	(d) Recipients eligible under subdivision 3, paragraph (a), shall pay the following 
179.35 	co-payments for services provided on or after October 1, 2003:
179.36 	(1) $25 for eyeglasses;
180.1 	(2) $25 for nonemergency visits to a hospital-based emergency room;
180.2 	(3) $3 per brand-name drug prescription and $1 per generic drug prescription, 
180.3 	subject to a $12 per month maximum for prescription drug co-payments. No co-payments 
180.4 	shall apply to antipsychotic drugs when used for the treatment of mental illness; and
180.5 	(4) 50 percent coinsurance on restorative dental services.
180.6 	(e) Co-payments shall be limited to one per day per provider for nonpreventive visits, 
180.7 	eyeglasses, and nonemergency visits to a hospital-based emergency room. Recipients of 
180.8 	general assistance medical care are responsible for all co-payments in this subdivision. 
180.9 	The general assistance medical care reimbursement to the provider shall be reduced by 
180.10 	the amount of the co-payment, except that reimbursement for prescription drugs shall not 
180.11 	be reduced once a recipient has reached the $12 per month maximum for prescription 
180.12 	drug co-payments. The provider collects the co-payment from the recipient. Providers 
180.13 	may not deny services to recipients who are unable to pay the co-payment, except as 
180.14 	provided in paragraph (f).
180.15 	(f) If it is the routine business practice of a provider to refuse service to an individual 
180.16 	with uncollected debt, the provider may include uncollected co-payments under this 
180.17 	section. A provider must give advance notice to a recipient with uncollected debt before 
180.18 	services can be denied.
180.19 	(g) Any county may, from its own resources, provide medical payments for which 
180.20 	state payments are not made.
180.21 	(h) Chemical dependency services that are reimbursed under chapter 254B must not 
180.22 	be reimbursed under general assistance medical care.
180.23 	(i) The maximum payment for new vendors enrolled in the general assistance 
180.24 	medical care program after the base year shall be determined from the average usual and 
180.25 	customary charge of the same vendor type enrolled in the base year.
180.26 	(j) The conditions of payment for services under this subdivision are the same as the 
180.27 	conditions specified in rules adopted under chapter 256B governing the medical assistance 
180.28 	program, unless otherwise provided by statute or rule.
180.29 	(k) Inpatient and outpatient payments shall be reduced by five percent, effective July 
180.30 	1, 2003. This reduction is in addition to the five percent reduction effective July 1, 2003, 
180.31 	and incorporated by reference in paragraph (i).
180.32 	(l) Payments for all other health services except inpatient, outpatient, and pharmacy 
180.33 	services shall be reduced by five percent, effective July 1, 2003.
180.34 	(m) Payments to managed care plans shall be reduced by five percent for services 
180.35 	provided on or after October 1, 2003.
181.1 	(n) A hospital receiving a reduced payment as a result of this section may apply the 
181.2 	unpaid balance toward satisfaction of the hospital's bad debts.
181.3 	(o) Fee-for-service payments for nonpreventive visits shall be reduced by $3 
181.4 	for services provided on or after January 1, 2006. For purposes of this subdivision, a 
181.5 	visit means an episode of service which is required because of a recipient's symptoms, 
181.6 	diagnosis, or established illness, and which is delivered in an ambulatory setting by 
181.7 	a physician or physician ancillary, chiropractor, podiatrist, advance practice nurse, 
181.8 	audiologist, optician, or optometrist.
181.9 	(p) Payments to managed care plans shall not be increased as a result of the removal 
181.10 	of the $3 nonpreventive visit co-payment effective January 1, 2006.
181.11 	(q) Payments for mental health services added as covered benefits after December 
181.12 	31, 2007, are not subject to the reductions in paragraphs (i), (k), (l), and (m).

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

181.15 	Sec. 27. Minnesota Statutes 2006, section 256I.04, subdivision 3, is amended to read:
181.16 		Subd. 3.Moratorium on the development of group residential housing beds. (a) 
181.17 	County agencies shall not enter into agreements for new group residential housing beds 
181.18 	with total rates in excess of the MSA equivalent rate except: (1) for group residential 
181.19 	housing establishments licensed under Minnesota Rules, parts 9525.0215 to 9525.0355, 
181.20 	provided the facility is needed to meet the census reduction targets for persons with 
181.21 	developmental disabilities at regional treatment centers; (2) to ensure compliance with 
181.22 	the federal Omnibus Budget Reconciliation Act alternative disposition plan requirements 
181.23 	for inappropriately placed persons with developmental disabilities or mental illness; 
181.24 	(3) up to 80 beds in a single, specialized facility located in Hennepin County that will 
181.25 	provide housing for chronic inebriates who are repetitive users of detoxification centers 
181.26 	and are refused placement in emergency shelters because of their state of intoxication, 
181.27 	and planning for the specialized facility must have been initiated before July 1, 1991, in 
181.28 	anticipation of receiving a grant from the Housing Finance Agency under section 462A.05, 
181.29 	subdivision 20a, paragraph (b); (4) notwithstanding the provisions of subdivision 2a, for 
181.30 	up to 190 supportive housing units in Anoka, Dakota, Hennepin, or Ramsey County 
181.31 	for homeless adults with a mental illness, a history of substance abuse, or human 
181.32 	immunodeficiency virus or acquired immunodeficiency syndrome. For purposes of this 
181.33 	section, "homeless adult" means a person who is living on the street or in a shelter or 
181.34 	discharged from a regional treatment center, community hospital, or residential treatment 
181.35 	program and has no appropriate housing available and lacks the resources and support 
182.1 	necessary to access appropriate housing. At least 70 percent of the supportive housing 
182.2 	units must serve homeless adults with mental illness, substance abuse problems, or human 
182.3 	immunodeficiency virus or acquired immunodeficiency syndrome who are about to be 
182.4 	or, within the previous six months, has been discharged from a regional treatment center, 
182.5 	or a state-contracted psychiatric bed in a community hospital, or a residential mental 
182.6 	health or chemical dependency treatment program. If a person meets the requirements of 
182.7 	subdivision 1, paragraph (a), and receives a federal or state housing subsidy, the group 
182.8 	residential housing rate for that person is limited to the supplementary rate under section 
182.9 	256I.05, subdivision 1a, and is determined by subtracting the amount of the person's 
182.10 	countable income that exceeds the MSA equivalent rate from the group residential housing 
182.11 	supplementary rate. A resident in a demonstration project site who no longer participates 
182.12 	in the demonstration program shall retain eligibility for a group residential housing 
182.13 	payment in an amount determined under section 256I.06, subdivision 8, using the MSA 
182.14 	equivalent rate. Service funding under section 256I.05, subdivision 1a, will end June 30, 
182.15 	1997, if federal matching funds are available and the services can be provided through a 
182.16 	managed care entity. If federal matching funds are not available, then service funding will 
182.17 	continue under section 256I.05, subdivision 1a; or (6)(5) for group residential housing 
182.18 	beds in settings meeting the requirements of subdivision 2a, clauses (1) and (3), which 
182.19 	are used exclusively for recipients receiving home and community-based waiver services 
182.20 	under sections 256B.0915, 256B.092, subdivision 5, 256B.093, and 256B.49, and who 
182.21 	resided in a nursing facility for the six months immediately prior to the month of entry 
182.22 	into the group residential housing setting. The group residential housing rate for these 
182.23 	beds must be set so that the monthly group residential housing payment for an individual 
182.24 	occupying the bed when combined with the nonfederal share of services delivered under 
182.25 	the waiver for that person does not exceed the nonfederal share of the monthly medical 
182.26 	assistance payment made for the person to the nursing facility in which the person resided 
182.27 	prior to entry into the group residential housing establishment. The rate may not exceed 
182.28 	the MSA equivalent rate plus $426.37 for any case; (6) for a new 65-bed facility in Crow 
182.29 	Wing County that will serve chemically dependent persons, operated by a group residential 
182.30 	housing provider that currently operates a 304-bed facility in Minneapolis, and a 44-bed 
182.31 	facility in Duluth; (7) for two ten-bed group residential housing facilities in Ramsey 
182.32 	County and Hennepin County, which were established as part of a pilot project under 
182.33 	Laws 2006, chapter 282, section 16, which provide community support to individuals who 
182.34 	have been living homeless for at least one year; provide 24-hour supervision; and provide 
182.35 	on-site mental health services, which focus on the mental health needs of individuals who 
182.36 	have lived unsheltered; or (8) for an additional two beds, resulting in a total of 32 beds, for 
183.1 	a facility located in Hennepin County providing services for recovering and chemically 
183.2 	dependent men that has had a group residential housing contract with the county and has 
183.3 	been licensed as a board and lodge facility with special services since 1980. 
183.4 	(b) A county agency may enter into a group residential housing agreement for beds 
183.5 	with rates in excess of the MSA equivalent rate in addition to those currently covered 
183.6 	under a group residential housing agreement if the additional beds are only a replacement 
183.7 	of beds with rates in excess of the MSA equivalent rate which have been made available 
183.8 	due to closure of a setting, a change of licensure or certification which removes the beds 
183.9 	from group residential housing payment, or as a result of the downsizing of a group 
183.10 	residential housing setting. The transfer of available beds from one county to another can 
183.11 	only occur by the agreement of both counties.

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

183.13 	Sec. 28. Minnesota Statutes 2006, section 256I.05, is amended by adding a subdivision 
183.14 	to read:
183.15 		Subd. 1h.Supplementary rate for certain facilities; Crow Wing County.
 183.16 	Notwithstanding the provisions of this section, beginning July 1, 2007, a county agency 
183.17 	shall negotiate a supplementary rate in addition to the rate specified in subdivision 1, not 
183.18 	to exceed $700 per month, including any legislatively authorized inflationary adjustments, 
183.19 	for a new 65-bed facility in Crow Wing County that will serve chemically dependent 
183.20 	persons operated by a group residential housing provider that currently operates a 304-bed 
183.21 	facility in Minneapolis and a 44-bed facility in Duluth which opened in January of 2006.

183.22 	Sec. 29. Minnesota Statutes 2006, section 256I.05, is amended by adding a subdivision 
183.23 	to read:
183.24 		Subd. 1i.Supplemental rate for certain facilities; Hennepin and Ramsey 
183.25 	Counties. (a) Notwithstanding the provisions of this section, beginning July 1, 2007, a 
183.26 	county agency shall negotiate a supplemental service rate in addition to the rate specified 
183.27 	in subdivision 1, not to exceed $700 per month or the existing monthly rate, whichever 
183.28 	is higher, including any legislatively authorized inflationary adjustments, for a group 
183.29 	residential housing provider that operates two ten-bed facilities, one located in Hennepin 
183.30 	County and one located in Ramsey County, which provide community support and serve 
183.31 	the mental health needs of individuals who have chronically lived unsheltered, providing 
183.32 	24-hour per day supervision.
183.33 	(b) An individual who has lived in one of the facilities under paragraph (a), who 
183.34 	is being transitioned to independent living as part of the program plan continues to be 
184.1 	eligible for group residential housing and the supplemental service rate negotiated with 
184.2 	the county under paragraph (a).

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

184.4 	Sec. 30. Minnesota Statutes 2006, section 256I.05, is amended by adding a subdivision 
184.5 	to read:
184.6 		Subd. 1j.Supplementary rate for certain facilities serving chemically dependent 
184.7 	males. Notwithstanding the provisions of this section, beginning July 1, 2007, a county 
184.8 	agency shall negotiate a supplementary rate in addition to the rate specified in subdivision 
184.9 	1, not to exceed $740 per month, including any legislatively authorized inflationary 
184.10 	adjustments, for a group residential housing provider that:
184.11 	(1) is located in Ramsey County and has had a group residential housing contract 
184.12 	with the county since 1982 and has been licensed as a board and lodge facility with special 
184.13 	services since 1979; and
184.14 	(2) serves recovering and chemically dependent males, providing 24-hour-a-day 
184.15 	supervision.

184.16 	Sec. 31. Minnesota Statutes 2006, section 256L.03, subdivision 1, is amended to read:
184.17 		Subdivision 1.Covered health services. For individuals under section 256L.04, 
184.18 	subdivision 7, with income no greater than 75 percent of the federal poverty guidelines 
184.19 	or for families with children under section 256L.04, subdivision 1, all subdivisions of 
184.20 	this section apply. "Covered health services" means the health services reimbursed 
184.21 	under chapter 256B, with the exception of inpatient hospital services, special education 
184.22 	services, private duty nursing services, adult dental care services other than services 
184.23 	covered under section 256B.0625, subdivision 9, orthodontic services, nonemergency 
184.24 	medical transportation services, personal care assistant and case management services, 
184.25 	nursing home or intermediate care facilities services, inpatient mental health services, 
184.26 	and chemical dependency services. Outpatient mental health services covered under the 
184.27 	MinnesotaCare program are limited to diagnostic assessments, psychological testing, 
184.28 	explanation of findings, mental health telemedicine, psychiatric consultation, medication 
184.29 	management by a physician, day treatment, partial hospitalization, and individual, family, 
184.30 	and group psychotherapy.
184.31 	No public funds shall be used for coverage of abortion under MinnesotaCare 
184.32 	except where the life of the female would be endangered or substantial and irreversible 
184.33 	impairment of a major bodily function would result if the fetus were carried to term; or 
184.34 	where the pregnancy is the result of rape or incest.
185.1 	Covered health services shall be expanded as provided in this section.

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

185.4 	Sec. 32. Minnesota Statutes 2006, section 256L.035, is amended to read:
185.5 	256L.035 LIMITED BENEFITS COVERAGE FOR CERTAIN SINGLE 
185.6 	ADULTS AND HOUSEHOLDS WITHOUT CHILDREN.
185.7 	(a) "Covered health services" for individuals under section 256L.04, subdivision 
185.8 	7, with income above 75 percent, but not exceeding 175 percent, of the federal poverty 
185.9 	guideline means:
185.10 	(1) inpatient hospitalization benefits with a ten percent co-payment up to $1,000 and 
185.11 	subject to an annual limitation of $10,000;
185.12 	(2) physician services provided during an inpatient stay; and
185.13 	(3) physician services not provided during an inpatient stay; outpatient hospital 
185.14 	services; freestanding ambulatory surgical center services; chiropractic services; lab and 
185.15 	diagnostic services; diabetic supplies and equipment; mental health services as covered 
185.16 	under chapter 256B; and prescription drugs; subject to the following co-payments:
185.17 	(i) $50 co-pay per emergency room visit;
185.18 	(ii) $3 co-pay per prescription drug; and
185.19 	(iii) $5 co-pay per nonpreventive visit.
185.20 	The services covered under this section may be provided by a physician, physician 
185.21 	ancillary, chiropractor, psychologist, or licensed independent clinical social worker, or 
185.22 	other mental health providers covered under chapter 256B if the services are within the 
185.23 	scope of practice of that health care professional.
185.24 	For purposes of this section, "a visit" means an episode of service which is required 
185.25 	because of a recipient's symptoms, diagnosis, or established illness, and which is delivered 
185.26 	in an ambulatory setting by any health care provider identified in this paragraph.
185.27 	Enrollees are responsible for all co-payments in this section.
185.28 	(b) Reimbursement to the providers shall be reduced by the amount of the 
185.29 	co-payment, except that reimbursement for prescription drugs shall not be reduced once a 
185.30 	recipient has reached the $20 per month maximum for prescription drug co-payments. 
185.31 	The provider collects the co-payment from the recipient. Providers may not deny services 
185.32 	to recipients who are unable to pay the co-payment, except as provided in paragraph (c).
185.33 	(c) If it is the routine business practice of a provider to refuse service to an individual 
185.34 	with uncollected debt, the provider may include uncollected co-payments under this 
186.1 	section. A provider must give advance notice to a recipient with uncollected debt before 
186.2 	services can be denied.

186.3 	EFFECTIVE DATE. This section is effective January 1, 2008, except coverage 
186.4 	for mental health case management under paragraph (a), clause (3), is effective January 
186.5 	1, 2009.

186.6 	Sec. 33. Minnesota Statutes 2006, section 256L.12, subdivision 9a, is amended to read:
186.7 		Subd. 9a.Rate setting; ratable reduction. For services rendered on or after 
186.8 	October 1, 2003, the total payment made to managed care plans under the MinnesotaCare 
186.9 	program is reduced 1.0 percent. This provision excludes payments for mental health 
186.10 	services added as covered benefits after December 31, 2007.

186.11 	Sec. 34. Minnesota Statutes 2006, section 609.115, subdivision 8, is amended to read:
186.12 		Subd. 8.Chemical use assessment required. (a) If a person is convicted of a 
186.13 	felony, the probation officer shall determine in the report prepared under subdivision 1 
186.14 	whether or not alcohol or drug use was a contributing factor to the commission of the 
186.15 	offense. If so, the report shall contain the results of a chemical use assessment conducted 
186.16 	in accordance with this subdivision. The probation officer shall make an appointment for 
186.17 	the defendant to undergo the chemical use assessment if so indicated.
186.18 	(b) The chemical use assessment report must include a recommended level of 
186.19 	care for the defendant in accordance with the criteria contained in rules adopted by the 
186.20 	commissioner of human services under section 254A.03, subdivision 3. The assessment 
186.21 	must be conducted by an assessor qualified under rules adopted by the commissioner of 
186.22 	human services under section 254A.03, subdivision 3. An assessor providing a chemical 
186.23 	use assessment may not have any direct or shared financial interest or referral relationship 
186.24 	resulting in shared financial gain with a treatment provider, except as authorized under 
186.25 	section 254A.20, subdivision 3. If an independent assessor is not available, the probation 
186.26 	officer may use the services of an assessor authorized to perform assessments for the 
186.27 	county social services agency under a variance granted under rules adopted by the 
186.28 	commissioner of human services under section 254A.03, subdivision 3. 

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

186.30 	Sec. 35. Minnesota Statutes 2006, section 609.115, subdivision 9, is amended to read:
186.31 		Subd. 9.Compulsive gambling assessment required. (a) If a person is convicted 
186.32 	of theft under section 609.52, embezzlement of public funds under section 609.54, or 
187.1 	forgery under section 609.625, 609.63, or 609.631, the probation officer shall determine in 
187.2 	the report prepared under subdivision 1 whether or not compulsive gambling contributed 
187.3 	to the commission of the offense. If so, the report shall contain the results of a compulsive 
187.4 	gambling assessment conducted in accordance with this subdivision. The probation officer 
187.5 	shall make an appointment for the offender to undergo the assessment if so indicated. 
187.6 	(b) The compulsive gambling assessment report must include a recommended level 
187.7 	of treatment for the offender if the assessor concludes that the offender is in need of 
187.8 	compulsive gambling treatment. The assessment must be conducted by an assessor 
187.9 	qualified either under section 245.98, subdivision 2a Minnesota Rules, part 9585.0040, 
187.10 	subpart 1, item C, or qualifications determined to be equivalent by the commissioner, to 
187.11 	perform these assessments or to provide compulsive gambling treatment. An assessor 
187.12 	providing a compulsive gambling assessment may not have any direct or shared financial 
187.13 	interest or referral relationship resulting in shared financial gain with a treatment provider. 
187.14 	If an independent assessor is not available, the probation officer may use the services of an 
187.15 	assessor with a financial interest or referral relationship as authorized under rules adopted 
187.16 	by the commissioner of human services under section 245.98, subdivision 2a. 
187.17 	(c) The commissioner of human services shall reimburse the assessor for the 
187.18 	costs associated with aeach compulsive gambling assessment at a rate established 
187.19 	by the commissioner up to a maximum of $100 for each assessment. To the extent 
187.20 	practicable, the commissioner shall standardize reimbursement rates for assessments. The 
187.21 	commissioner shall reimburse these coststhe assessor after receiving written verification 
187.22 	from the probation officer that the assessment was performed and found acceptable.

187.23 	Sec. 36. Laws 2005, chapter 98, article 3, section 25, is amended to read:
187.24 	Sec. 25. REPEALER.
 187.25 	Minnesota Statutes 2004, sections 245.713, subdivisions 2 andsubdivision 4; 
187.26 	245.716; and 626.5551, subdivision 4, are repealed.

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

187.28 	Sec. 37. RECOMMENDATIONS ON CHANGING CONSOLIDATED 
187.29 	CHEMICAL DEPENDENCY TREATMENT FUND.
 187.30 	The commissioner of human services shall report to the legislature by January 
187.31 	15, 2008, on recommendations which analyze the merits of changing the statutory 
187.32 	maintenance of effort provisions in the chemical dependency treatment fund and the 
187.33 	feasibility of posting treatment program peer reviews at an online location where they can 
187.34 	be viewed by agencies that make client placements.

188.1 	Sec. 38. PLAN FOR IMPROVING COMMUNITY-BASED SUBSTANCE 
188.2 	ABUSE TREATMENT.
 188.3 	The commissioner of human services shall present a plan to the legislature by 
188.4 	January 15, 2008, for improving the availability of community-based substance abuse 
188.5 	treatment.

188.6 	Sec. 39. SOCIAL AND ECONOMIC COSTS OF GAMBLING.
 188.7 		Subdivision 1.Report. The commissioner of human services, in consultation with 
188.8 	the state affiliate of the National Council on Problem Gambling, stakeholders, and licensed 
188.9 	vendors, shall prepare a report that provides a process and funding mechanism to study the 
188.10 	issues in subdivisions 2 and 3. The commissioner, in consultation with the state affiliate 
188.11 	of the National Council on Problem Gambling, stakeholders, and licensed vendors, shall 
188.12 	include in the report potential financial commitments made by stakeholders and others, in 
188.13 	order to fund the study. The report is due to the legislative committees having jurisdiction 
188.14 	over compulsive gambling issues by December 1, 2007. 
188.15 		Subd. 2.Issues to be addressed. The study must address:
188.16 	(1) state, local, and tribal government policies and practices in Minnesota to legalize 
188.17 	or prohibit gambling;
188.18 	(2) the relationship between gambling and crime in Minnesota, including: (i) the 
188.19 	relationship between gambling and overall crime rates; (ii) the relationship between 
188.20 	gambling and crime rates for specific crimes, such as forgery, domestic abuse, child 
188.21 	neglect and abuse, alcohol and drug offenses, and youth crime; and (iii) enforcement 
188.22 	and regulation practices that are intended to address the relationship between gambling 
188.23 	and levels of crime;
188.24 	(3) the relationship between expanded gambling and increased rates of problem 
188.25 	gambling in Minnesota, including the impact of pathological or problem gambling on 
188.26 	individuals, families, businesses, social institutions, and the economy;
188.27 	(4) the social impact of gambling on individuals, families, businesses, and social 
188.28 	institutions in Minnesota, including an analysis of the relationship between gambling and 
188.29 	depression, abuse, divorce, homelessness, suicide, and bankruptcy;
188.30 	(5) the economic impact of gambling on state, local, and tribal economies in 
188.31 	Minnesota; and
188.32 	(6) any other issues deemed necessary in assessing the social and economic impact 
188.33 	of gambling in Minnesota.
188.34 		Subd. 3.Quantification of social and economic impact. The study shall quantify 
188.35 	the social and economic impact on both (1) state, local, and tribal governments in 
189.1 	Minnesota, and (2) Minnesota's communities and social institutions, including individuals, 
189.2 	families, and businesses within those communities and institutions.

189.3 	Sec. 40. REVISOR'S INSTRUCTION.
 189.4 	(a) The revisor of statutes shall change the references to sections "245.487 to 
189.5 	245.4887" wherever it appears in statutes or rules to sections "245.487 to 245.4889."
189.6 	(b) The revisor of statutes shall correct all internal references that are necessary 
189.7 	from the relettering in section 18.

189.8 	Sec. 41.  REPEALER.
 189.9 	Minnesota Rules, part 9585.0030, is repealed.

189.10 	ARTICLE 7
189.11 	DEPARTMENT OF HEALTH

189.12 	Section 1. Minnesota Statutes 2006, section 62J.692, subdivision 1, is amended to read:
189.13 		Subdivision 1.Definitions. For purposes of this section, the following definitions 
189.14 	apply:
189.15 	(a) "Accredited clinical training" means the clinical training provided by a 
189.16 	medical education program that is accredited through an organization recognized by the 
189.17 	Department of Education, the Centers for Medicare and Medicaid Services, or another 
189.18 	national body who reviews the accrediting organizations for multiple disciplines and 
189.19 	whose standards for recognizing accrediting organizations are reviewed and approved by 
189.20 	the commissioner of health in consultation with the Medical Education and Research 
189.21 	Advisory Committee.
189.22 	(b) "Commissioner" means the commissioner of health.
189.23 	(c) "Clinical medical education program" means the accredited clinical training of 
189.24 	physicians (medical students and residents), doctor of pharmacy practitioners, doctors 
189.25 	of chiropractic, dentists, advanced practice nurses (clinical nurse specialists, certified 
189.26 	registered nurse anesthetists, nurse practitioners, and certified nurse midwives), and 
189.27 	physician assistants.
189.28 	(d) "Sponsoring institution" means a hospital, school, or consortium located in 
189.29 	Minnesota that sponsors and maintains primary organizational and financial responsibility 
189.30 	for a clinical medical education program in Minnesota and which is accountable to the 
189.31 	accrediting body.
189.32 	(e) "Teaching institution" means a hospital, medical center, clinic, or other 
189.33 	organization that conducts a clinical medical education program in Minnesota.
190.1 	(f) "Trainee" means a student or resident involved in a clinical medical education 
190.2 	program.
190.3 	(g) "Eligible trainee FTEs FTE's" means the number of trainees, as measured by 
190.4 	full-time equivalent counts, that are at training sites located in Minnesota with acurrently 
190.5 	active medical assistance provider numberenrollment status and a National Provider 
190.6 	Identification (NPI) number where training occurs in either an inpatient or ambulatory 
190.7 	patient care setting and where the training is funded, in part, by patient care revenues.
190.8 	Training that occurs in nursing facility settings is not eligible for funding under this section.

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

190.10 	Sec. 2. Minnesota Statutes 2006, section 62J.692, subdivision 4, is amended to read:
190.11 		Subd. 4.Distribution of funds. (a) Following the distribution described under 
190.12 	paragraph (b), the commissioner shall annually distribute 90 percent ofthe available 
190.13 	medical education funds to all qualifying applicants based on a distribution formula that 
190.14 	reflects a summation of two factors:
190.15 	(1) an education factor, which is determined by the total number of eligible trainee 
190.16 	FTEs and the total statewide average costs per trainee, by type of trainee, in each clinical 
190.17 	medical education program; and
190.18 	(2) a public program volume factor, which is determined by the total volume of 
190.19 	public program revenue received by each training site as a percentage of all public 
190.20 	program revenue received by all training sites in the fund pool; and
190.21 	(2) a supplemental public program volume factor, which is determined by providing 
190.22 	a supplemental payment of 20 percent of each training site's grant to training sites whose 
190.23 	public program revenue accounted for at least 0.98 percent of the total public program 
190.24 	revenue received by all eligible training sites. Grants to training sites whose public 
190.25 	program revenue accounted for less than 0.98 percent of the total public program revenue 
190.26 	received by all eligible training sites shall be reduced by an amount equal to the total 
190.27 	value of the supplemental payment.
190.28 	In this formula, the education factor is weighted at 67 percent and the public program 
190.29 	volume factor is weighted at 33 percent.
190.30 	Public program revenue for the distribution formula includes revenue from medical 
190.31 	assistance, prepaid medical assistance, general assistance medical care, and prepaid 
190.32 	general assistance medical care. Training sites that receive no public program revenue 
190.33 	are ineligible for funds available under this paragraph subdivision.  For purposes of 
190.34 	determining training-site level grants to be distributed under paragraph (a), total statewide 
190.35 	average costs per trainee for medical residents is based on audited clinical training costs 
191.1 	per trainee in primary care clinical medical education programs for medical residents. 
191.2 	Total statewide average costs per trainee for dental residents is based on audited clinical 
191.3 	training costs per trainee in clinical medical education programs for dental students. Total 
191.4 	statewide average costs per trainee for pharmacy residents is based on audited clinical 
191.5 	training costs per trainee in clinical medical education programs for pharmacy students.
191.6 	(b) The commissioner shall annually distribute ten percent of total available medical 
191.7 	education funds to all qualifying applicants based on the percentage received by each 
191.8 	applicant under paragraph (a). These funds are to be used to offset clinical education 
191.9 	costs at eligible clinical training sites based on criteria developed by the clinical medical 
191.10 	education program. Applicants may choose to distribute funds allocated under this 
191.11 	paragraph based on the distribution formula described in paragraph (a) $3,550,000 of the 
191.12 	available medical education funds shall be distributed as follows:
191.13 	(1) $1,475,000 to the University of Minnesota Medical Center-Fairview; and
191.14 	(2) $2,075,000 to the University of Minnesota School of Dentistry.
191.15 	(c) Funds distributed shall not be used to displace current funding appropriations 
191.16 	from federal or state sources.
191.17 	(d) Funds shall be distributed to the sponsoring institutions indicating the amount 
191.18 	to be distributed to each of the sponsor's clinical medical education programs based on 
191.19 	the criteria in this subdivision and in accordance with the commissioner's approval letter. 
191.20 	Each clinical medical education program must distribute funds allocated under paragraph 
191.21 	(a) to the training sites as specified in the commissioner's approval letter. Sponsoring 
191.22 	institutions, which are accredited through an organization recognized by the Department 
191.23 	of Education or the Centers for Medicare and Medicaid Services, may contract directly 
191.24 	with training sites to provide clinical training. To ensure the quality of clinical training, 
191.25 	those accredited sponsoring institutions must:
191.26 	(1) develop contracts specifying the terms, expectations, and outcomes of the clinical 
191.27 	training conducted at sites; and
191.28 	(2) take necessary action if the contract requirements are not met. Action may 
191.29 	include the withholding of payments under this section or the removal of students from 
191.30 	the site.
191.31 	(e) Any funds not distributed in accordance with the commissioner's approval letter 
191.32 	must be returned to the medical education and research fund within 30 days of receiving 
191.33 	notice from the commissioner. The commissioner shall distribute returned funds to the 
191.34 	appropriate training sites in accordance with the commissioner's approval letter.
191.35 	(f) The commissioner shall distribute by June 30 of each year an amount equal to 
191.36 	the funds transferred under subdivision 10, plus five percent interest to the University of 
192.1 	Minnesota Board of Regents for the instructional costs of health professional programs 
192.2 	at the Academic Health Center and for interdisciplinary academic initiatives within the 
192.3 	Academic Health Center.
192.4 	(g) A maximum of $150,000 of the funds dedicated to the commissioner under 
192.5 	section 297F.10, subdivision 1, paragraph (b), clause (2), may be used by the commissioner 
192.6 	for administrative expenses associated with implementing this section.

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

192.8 	Sec. 3. Minnesota Statutes 2006, section 62J.692, subdivision 5, is amended to read:
192.9 		Subd. 5.Report. (a) Sponsoring institutions receiving funds under this section 
192.10 	must sign and submit a medical education grant verification report (GVR) to verify that 
192.11 	the correct grant amount was forwarded to each eligible training site. If the sponsoring 
192.12 	institution fails to submit the GVR by the stated deadline, or to request and meet 
192.13 	the deadline for an extension, the sponsoring institution is required to return the full 
192.14 	amount of funds received to the commissioner within 30 days of receiving notice from 
192.15 	the commissioner. The commissioner shall distribute returned funds to the appropriate 
192.16 	training sites in accordance with the commissioner's approval letter.
192.17 	(b) The reports must provide verification of the distribution of the funds and must 
192.18 	include:
192.19 	(1) the total number of eligible trainee FTEs in each clinical medical education 
192.20 	program;
192.21 	(2) the name of each funded program and, for each program, the dollar amount 
192.22 	distributed to each training site;
192.23 	(3) documentation of any discrepancies between the initial grant distribution notice 
192.24 	included in the commissioner's approval letter and the actual distribution;
192.25 	(4) a statement by the sponsoring institution describing the distribution of funds 
192.26 	allocated under subdivision 4, paragraph (b), including information on which clinical 
192.27 	training sites received funding and the rationale used for determining funding priorities;
192.28 	(5) a statement by the sponsoring institution stating that the completed grant 
192.29 	verification report is valid and accurate; and
192.30 	(6)(5) other information the commissioner, with advice from the advisory 
192.31 	committee, deems appropriate to evaluate the effectiveness of the use of funds for medical 
192.32 	education.
192.33 	(c) By February 15 of each year, the commissioner, with advice from the 
192.34 	advisory committee, shall provide an annual summary report to the legislature on the 
192.35 	implementation of this section.

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

193.2 	Sec. 4. Minnesota Statutes 2006, section 62J.692, subdivision 8, is amended to read:
193.3 		Subd. 8.Federal financial participation. (a) The commissioner of human 
193.4 	services shall seek to maximize federal financial participation in payments for medical 
193.5 	education and research costs. If the commissioner of human services determines that 
193.6 	federal financial participation is available for the medical education and research, the 
193.7 	commissioner of health shall transfer to the commissioner of human services the amount 
193.8 	of state funds necessary to maximize the federal funds available. The amount transferred 
193.9 	to the commissioner of human services, plus the amount of federal financial participation, 
193.10 	shall be distributed to medical assistance providers in accordance with the distribution 
193.11 	methodology described in subdivision 4.
193.12 	(b) For the purposes of paragraph (a), The commissioner shall use physician clinic 
193.13 	rates where possible to maximize federal financial participation.

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

193.15 	Sec. 5. Minnesota Statutes 2006, section 62Q.80, is amended by adding a subdivision 
193.16 	to read:
193.17 		Subd. 1a.Demonstration project. The commissioner of health shall award a 
193.18 	demonstration project grant to a community-based health care initiative to develop and 
193.19 	operate a community-based health care coverage program to operate within Carlton, Cook, 
193.20 	Lake, and St. Louis County. The demonstration project shall extend for five years and 
193.21 	must comply with the requirements of this section.

193.22 	Sec. 6. Minnesota Statutes 2006, section 62Q.80, subdivision 3, is amended to read:
193.23 		Subd. 3.Approval.  (a) Prior to the operation of a community-based health care 
193.24 	coverage program, a community-based health initiative shall submit to the commissioner 
193.25 	of health for approval the community-based health care coverage program developed by 
193.26 	the initiative. The commissioner shall only approve a program that has been awarded 
193.27 	a community access program grant from the United States Department of Health and 
193.28 	Human Services. The commissioner shall ensure that the program meets the federal grant
193.29 	requirements and any requirements described in this section and is actuarially sound based 
193.30 	on a review of appropriate records and methods utilized by the community-based health 
193.31 	initiative in establishing premium rates for the community-based health care coverage 
193.32 	program. 
193.33 	(b) Prior to approval, the commissioner shall also ensure that:
194.1 	(1) the benefits offered comply with subdivision 8 and that there are adequate 
194.2 	numbers of health care providers participating in the community-based health network to 
194.3 	deliver the benefits offered under the program;
194.4 	(2) the activities of the program are limited to activities that are exempt under this 
194.5 	section or otherwise from regulation by the commissioner of commerce;
194.6 	(3) the complaint resolution process meets the requirements of subdivision 10; and 
194.7 	(4) the data privacy policies and procedures comply with state and federal law.

194.8 	Sec. 7. Minnesota Statutes 2006, section 62Q.80, subdivision 4, is amended to read:
194.9 		Subd. 4.Establishment.  (a) The initiative shall establish and operate upon approval 
194.10 	by the commissioner of health a community-based health care coverage program. The 
194.11 	operational structure established by the initiative shall include, but is not limited to: 
194.12 	(1) establishing a process for enrolling eligible individuals and their dependents; 
194.13 	(2) collecting and coordinating premiums from enrollees and employers of enrollees;
194.14 	(3) providing payment to participating providers; 
194.15 	(4) establishing a benefit set according to subdivision 8 and establishing premium 
194.16 	rates and cost-sharing requirements; 
194.17 	(5) creating incentives to encourage primary care and wellness services; and 
194.18 	(6) initiating disease management services, as appropriate. 
194.19 	(b) The payments collected under paragraph (a), clause (2), may be used to capture 
194.20 	available federal funds.

194.21 	Sec. 8. Minnesota Statutes 2006, section 62Q.80, subdivision 13, is amended to read:
194.22 		Subd. 13.Report.  (a) The initiative shall submit quarterly status reports to the 
194.23 	commissioner of health on January 15, April 15, July 15, and October 15 of each year, 
194.24 	with the first report due January 15, 2007 2008. The status report shall include:
194.25 	(1) the financial status of the program, including the premium rates, cost per member 
194.26 	per month, claims paid out, premiums received, and administrative expenses; 
194.27 	(2) a description of the health care benefits offered and the services utilized; 
194.28 	(3) the number of employers participating, the number of employees and dependents 
194.29 	covered under the program, and the number of health care providers participating; 
194.30 	(4) a description of the health outcomes to be achieved by the program and a status 
194.31 	report on the performance measurements to be used and collected; and 
194.32 	(5) any other information requested by the commissioner of health or commerce or 
194.33 	the legislature. 
195.1 	(b) The initiative shall contract with an independent entity to conduct an evaluation 
195.2 	of the program to be submitted to the commissioners of health and commerce and the 
195.3 	legislature by January 15, 2009 2010. The evaluation shall include:
195.4 	(1) an analysis of the health outcomes established by the initiative and the 
195.5 	performance measurements to determine whether the outcomes are being achieved;
195.6 	(2) an analysis of the financial status of the program, including the claims to 
195.7 	premiums loss ratio and utilization and cost experience; 
195.8 	(3) the demographics of the enrollees, including their age, gender, family income, 
195.9 	and the number of dependents; 
195.10 	(4) the number of employers and employees who have been denied access to the 
195.11 	program and the basis for the denial; 
195.12 	(5) specific analysis on enrollees who have aggregate medical claims totaling over 
195.13 	$5,000 per year, including data on the enrollee's main diagnosis and whether all the 
195.14 	medical claims were covered by the program; 
195.15 	(6) number of enrollees referred to state public assistance programs; 
195.16 	(7) a comparison of employer-subsidized health coverage provided in a comparable 
195.17 	geographic area to the designated community-based geographic area served by the 
195.18 	program, including, to the extent available: 
195.19 	(i) the difference in the number of employers with 50 or fewer employees offering 
195.20 	employer-subsidized health coverage; 
195.21 	(ii) the difference in uncompensated care being provided in each area; and
195.22 	(iii) a comparison of health care outcomes and measurements established by the 
195.23 	initiative; and 
195.24 	(8) any other information requested by the commissioner of health or commerce.

195.25 	Sec. 9. Minnesota Statutes 2006, section 62Q.80, subdivision 14, is amended to read:
195.26 		Subd. 14.Sunset. This section expires December 31, 2011 2012.

195.27 	Sec. 10. Minnesota Statutes 2006, section 103I.101, subdivision 6, is amended to read:
195.28 		Subd. 6.Fees for variances. The commissioner shall charge a nonrefundable 
195.29 	application fee of $175 $215 to cover the administrative cost of processing a request for a 
195.30 	variance or modification of rules adopted by the commissioner under this chapter.

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

195.32 	Sec. 11. Minnesota Statutes 2006, section 103I.208, subdivision 1, is amended to read:
196.1 		Subdivision 1.Well notification fee. The well notification fee to be paid by a 
196.2 	property owner is:
196.3 	(1) for a new water supply well, $175 $215, which includes the state core function 
196.4 	fee;
196.5 	(2) for a well sealing, $35 $50 for each well, which includes the state core function 
196.6 	fee, except that for monitoring wells constructed on a single property, having depths 
196.7 	within a 25 foot range, and sealed within 48 hours of start of construction, a single fee of 
196.8 	$35 $50; and
196.9 	(3) for construction of a dewatering well, $175 $215, which includes the state core 
196.10 	function fee, for each dewatering well except a dewatering project comprising five or 
196.11 	more dewatering wells shall be assessed a single fee of $875 $1,075 for the dewatering 
196.12 	wells recorded on the notification.

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

196.14 	Sec. 12. Minnesota Statutes 2006, section 103I.208, subdivision 2, is amended to read:
196.15 		Subd. 2.Permit fee. The permit fee to be paid by a property owner is:
196.16 	(1) for a water supply well that is not in use under a maintenance permit, $150 $175
196.17 	annually;
196.18 	(2) for construction of a monitoring well, $175 $215, which includes the state 
196.19 	core function fee;
196.20 	(3) for a monitoring well that is unsealed under a maintenance permit, $150 $175
196.21 	annually;
196.22 	(4) for monitoring wells used as a leak detection device at a single motor fuel retail 
196.23 	outlet, a single petroleum bulk storage site excluding tank farms, or a single agricultural 
196.24 	chemical facility site, the construction permit fee is $175 $215, which includes the state 
196.25 	core function fee, per site regardless of the number of wells constructed on the site, and 
196.26 	the annual fee for a maintenance permit for unsealed monitoring wells is $150 $175 per 
196.27 	site regardless of the number of monitoring wells located on site;
196.28 	(5) for a groundwater thermal exchange device, in addition to the notification fee for 
196.29 	water supply wells, $175 $215, which includes the state core function fee;
196.30 	(6) for a vertical heat exchanger, $175 $215;
196.31 	(7) for a dewatering well that is unsealed under a maintenance permit, $150 $175
196.32 	annually for each dewatering well, except a dewatering project comprising more than five 
196.33 	dewatering wells shall be issued a single permit for $750 $875 annually for dewatering 
196.34 	wells recorded on the permit; and
196.35 	(8) for an elevator boring, $175 $215 for each boring.

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

197.2 	Sec. 13. Minnesota Statutes 2006, section 103I.235, subdivision 1, is amended to read:
197.3 		Subdivision 1.Disclosure of wells to buyer. (a) Before signing an agreement to 
197.4 	sell or transfer real property, the seller must disclose in writing to the buyer information 
197.5 	about the status and location of all known wells on the property, by delivering to the buyer 
197.6 	either a statement by the seller that the seller does not know of any wells on the property, 
197.7 	or a disclosure statement indicating the legal description and county, and a map drawn 
197.8 	from available information showing the location of each well to the extent practicable. 
197.9 	In the disclosure statement, the seller must indicate, for each well, whether the well is in 
197.10 	use, not in use, or sealed.
197.11 	(b) At the time of closing of the sale, the disclosure statement information, name and 
197.12 	mailing address of the buyer, and the quartile, section, township, and range in which each 
197.13 	well is located must be provided on a well disclosure certificate signed by the seller or a 
197.14 	person authorized to act on behalf of the seller.
197.15 	(c) A well disclosure certificate need not be provided if the seller does not know 
197.16 	of any wells on the property and the deed or other instrument of conveyance contains 
197.17 	the statement: "The Seller certifies that the Seller does not know of any wells on the 
197.18 	described real property."
197.19 	(d) If a deed is given pursuant to a contract for deed, the well disclosure certificate 
197.20 	required by this subdivision shall be signed by the buyer or a person authorized to act on 
197.21 	behalf of the buyer. If the buyer knows of no wells on the property, a well disclosure 
197.22 	certificate is not required if the following statement appears on the deed followed by the 
197.23 	signature of the grantee or, if there is more than one grantee, the signature of at least one 
197.24 	of the grantees: "The Grantee certifies that the Grantee does not know of any wells on the 
197.25 	described real property." The statement and signature of the grantee may be on the front 
197.26 	or back of the deed or on an attached sheet and an acknowledgment of the statement by 
197.27 	the grantee is not required for the deed to be recordable.
197.28 	(e) This subdivision does not apply to the sale, exchange, or transfer of real property:
197.29 	(1) that consists solely of a sale or transfer of severed mineral interests; or
197.30 	(2) that consists of an individual condominium unit as described in chapters 515 
197.31 	and 515B.
197.32 	(f) For an area owned in common under chapter 515 or 515B the association or other 
197.33 	responsible person must report to the commissioner by July 1, 1992, the location and 
197.34 	status of all wells in the common area. The association or other responsible person must 
197.35 	notify the commissioner within 30 days of any change in the reported status of wells.
198.1 	(g) For real property sold by the state under section 92.67, the lessee at the time of 
198.2 	the sale is responsible for compliance with this subdivision.
198.3 	(h) If the seller fails to provide a required well disclosure certificate, the buyer, or 
198.4 	a person authorized to act on behalf of the buyer, may sign a well disclosure certificate 
198.5 	based on the information provided on the disclosure statement required by this section 
198.6 	or based on other available information.
198.7 	(i) A county recorder or registrar of titles may not record a deed or other instrument 
198.8 	of conveyance dated after October 31, 1990, for which a certificate of value is required 
198.9 	under section 272.115, or any deed or other instrument of conveyance dated after October 
198.10 	31, 1990, from a governmental body exempt from the payment of state deed tax, unless 
198.11 	the deed or other instrument of conveyance contains the statement made in accordance 
198.12 	with paragraph (c) or (d) or is accompanied by the well disclosure certificate containing all 
198.13 	the information required by paragraph (b) or (d). The county recorder or registrar of titles 
198.14 	must not accept a certificate unless it contains all the required information. The county 
198.15 	recorder or registrar of titles shall note on each deed or other instrument of conveyance 
198.16 	accompanied by a well disclosure certificate that the well disclosure certificate was 
198.17 	received. The notation must include the statement "No wells on property" if the disclosure 
198.18 	certificate states there are no wells on the property. The well disclosure certificate shall not 
198.19 	be filed or recorded in the records maintained by the county recorder or registrar of titles. 
198.20 	After noting "No wells on property" on the deed or other instrument of conveyance, the 
198.21 	county recorder or registrar of titles shall destroy or return to the buyer the well disclosure 
198.22 	certificate. The county recorder or registrar of titles shall collect from the buyer or the 
198.23 	person seeking to record a deed or other instrument of conveyance, a fee of $40 $45
198.24 	for receipt of a completed well disclosure certificate. By the tenth day of each month, 
198.25 	the county recorder or registrar of titles shall transmit the well disclosure certificates 
198.26 	to the commissioner of health. By the tenth day after the end of each calendar quarter, 
198.27 	the county recorder or registrar of titles shall transmit to the commissioner of health 
198.28 	$32.50 $37.50 of the fee for each well disclosure certificate received during the quarter. 
198.29 	The commissioner shall maintain the well disclosure certificate for at least six years. The 
198.30 	commissioner may store the certificate as an electronic image. A copy of that image 
198.31 	shall be as valid as the original.
198.32 	(j) No new well disclosure certificate is required under this subdivision if the buyer 
198.33 	or seller, or a person authorized to act on behalf of the buyer or seller, certifies on the deed 
198.34 	or other instrument of conveyance that the status and number of wells on the property 
198.35 	have not changed since the last previously filed well disclosure certificate. The following 
198.36 	statement, if followed by the signature of the person making the statement, is sufficient 
199.1 	to comply with the certification requirement of this paragraph: "I am familiar with the 
199.2 	property described in this instrument and I certify that the status and number of wells on 
199.3 	the described real property have not changed since the last previously filed well disclosure 
199.4 	certificate." The certification and signature may be on the front or back of the deed or on 
199.5 	an attached sheet and an acknowledgment of the statement is not required for the deed or 
199.6 	other instrument of conveyance to be recordable.
199.7 	(k) The commissioner in consultation with county recorders shall prescribe the form 
199.8 	for a well disclosure certificate and provide well disclosure certificate forms to county 
199.9 	recorders and registrars of titles and other interested persons.
199.10 	(l) Failure to comply with a requirement of this subdivision does not impair:
199.11 	(1) the validity of a deed or other instrument of conveyance as between the parties 
199.12 	to the deed or instrument or as to any other person who otherwise would be bound by 
199.13 	the deed or instrument; or
199.14 	(2) the record, as notice, of any deed or other instrument of conveyance accepted for 
199.15 	filing or recording contrary to the provisions of this subdivision.

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

199.17 	Sec. 14. Minnesota Statutes 2006, section 144.123, is amended to read:
199.18 	144.123 FEES FOR DIAGNOSTIC LABORATORY SERVICES; 
199.19 	EXCEPTIONS.
199.20 		Subdivision 1.Who must pay. Except for the limitation contained in this section, 
199.21 	the commissioner of health shall charge a handling fee for each specimen submitted to 
199.22 	the Department of Health for analysis for diagnostic purposes by any hospital, private 
199.23 	laboratory, private clinic, or physician. No fee shall be charged to any entity which 
199.24 	receives direct or indirect financial assistance from state or federal funds administered by 
199.25 	the Department of Health, including any public health department, nonprofit community 
199.26 	clinic, venereal sexually transmitted disease clinic, family planning clinic, or similar 
199.27 	entity. No fee shall be charged for any biological materials submitted to the Department 
199.28 	of Health as a requirement of Minnesota Rules, part 4605.7040, or for those biological 
199.29 	materials requested by the department to gather information for disease prevention or 
199.30 	control purposes. The commissioner of health may establish by rule other exceptions to 
199.31 	the handling fee as may be necessary to gather information for epidemiologic purposes
199.32 	protect the public's health. All fees collected pursuant to this section shall be deposited in 
199.33 	the state treasury and credited to the state government special revenue fund.
200.1 		Subd. 2.Rules for Fee amounts. The commissioner of health shall promulgate 
200.2 	rules, in accordance with chapter 14, which shall specify the amount of the charge a
200.3 	handling fee prescribed in subdivision 1. The fee shall approximate the costs to the 
200.4 	department of handling specimens including reporting, postage, specimen kit preparation, 
200.5 	and overhead costs. The fee prescribed in subdivision 1 shall be $15 $25 per specimen 
200.6 	until the commissioner promulgates rules pursuant to this subdivision.

200.7 	Sec. 15. Minnesota Statutes 2006, section 144.125, subdivision 1, is amended to read:
200.8 		Subdivision 1.Duty to perform testing. It is the duty of (1) the administrative 
200.9 	officer or other person in charge of each institution caring for infants 28 days or less 
200.10 	of age, (2) the person required in pursuance of the provisions of section 144.215, 
200.11 	to register the birth of a child, or (3) the nurse midwife or midwife in attendance at 
200.12 	the birth, to arrange to have administered to every infant or child in its care tests for 
200.13 	heritable and congenital disorders according to subdivision 2 and rules prescribed by 
200.14 	the state commissioner of health. Testing and the recording and reporting of test results 
200.15 	shall be performed at the times and in the manner prescribed by the commissioner of 
200.16 	health. The commissioner shall charge laboratory service fees a fee so that the total of 
200.17 	fees collected will approximate the costs of conducting the tests and implementing and 
200.18 	maintaining a system to follow-up infants with heritable or congenital disorders. The 
200.19 	laboratory service fee is $61 $81 per specimen. Costs associated with capital expenditures 
200.20 	and the development of new procedures may be prorated over a three-year period when 
200.21 	calculating the amount of the fees. 

200.22 	Sec. 16. Minnesota Statutes 2006, section 144.125, subdivision 2, is amended to read:
200.23 		Subd. 2.Determination of tests to be administered. The commissioner shall 
200.24 	periodically revise the list of tests to be administered for determining the presence of a 
200.25 	heritable or congenital disorder. Revisions to the list shall reflect advances in medical 
200.26 	science, new and improved testing methods, or other factors that will improve the public 
200.27 	health. In determining whether a test must be administered, the commissioner shall take 
200.28 	into consideration the adequacy of laboratory analytical methods to detect the heritable 
200.29 	or congenital disorder, the ability to treat or prevent medical conditions caused by the 
200.30 	heritable or congenital disorder, and the severity of the medical conditions caused by the 
200.31 	heritable or congenital disorder. The list of tests to be performed may be revised if the 
200.32 	changes are recommended by the advisory committee established under section 144.1255, 
200.33 	approved by the commissioner, and published in the State Register. The revision is 
201.1 	exempt from the rulemaking requirements in chapter 14, and sections 14.385 and 14.386
201.2 	do not apply. 

201.3 	Sec. 17. Minnesota Statutes 2006, section 144.3345, is amended to read:
201.4 	144.3345 INTERCONNECTED ELECTRONIC HEALTH RECORD 
201.5 	GRANTS.
201.6 		Subdivision 1.Definitions. The following definitions are used for the purposes 
201.7 	of this section.
201.8 	(a) "Eligible community e-health collaborative" means an existing or newly 
201.9 	established collaborative to support the adoption and use of interoperable electronic 
201.10 	health records. A collaborative must consist of at least three two or more eligible health 
201.11 	care entities in at least two of the categories listed in paragraph (b) and have a focus on 
201.12 	interconnecting the members of the collaborative for secure and interoperable exchange of 
201.13 	health care information.
201.14 	(b) "Eligible health care entity" means one of the following:
201.15 	(1) community clinics, as defined under section 145.9268; 
201.16 	(2) hospitals eligible for rural hospital capital improvement grants, as defined 
201.17 	in section 144.148;
201.18 	(3) physician clinics located in a community with a population of less than 50,000 
201.19 	according to United States Census Bureau statistics and outside the seven-county 
201.20 	metropolitan area; 
201.21 	(4) nursing facilities licensed under sections 144A.01 to 144A.27; 
201.22 	(5) community health boards or boards of health as established under chapter 145A; 
201.23 	(6) nonprofit entities with a purpose to provide health information exchange 
201.24 	coordination governed by a representative, multi-stakeholder board of directors; and
201.25 	(7) other providers of health or health care services approved by the commissioner 
201.26 	for which interoperable electronic health record capability would improve quality of 
201.27 	care, patient safety, or community health.
201.28 		Subd. 2.Grants authorized. The commissioner of health shall award grants to:
201.29 	(a) eligible community e-health collaborative projects to improve the implementation 
201.30 	and use of interoperable electronic health records including but not limited to the 
201.31 	following projects:
201.32 	(1) collaborative efforts to host and support fully functional interoperable electronic 
201.33 	health records in multiple care settings; 
201.34 	(2) electronic medication history and electronic patient registration medical history
201.35 	information; 
202.1 	(3) electronic personal health records for persons with chronic diseases and for 
202.2 	prevention services; 
202.3 	(4) rural and underserved community models for electronic prescribing; and
202.4 	(5) enabling modernize local public health information systems to rapidly and 
202.5 	electronically exchange information needed to participate in community e-health 
202.6 	collaboratives or for public health emergency preparedness and response.; and
202.7 	(6) implement regional or community-based health information exchange 
202.8 	organizations;
202.9 	(b) community clinics, as defined under section 145.9268, to implement and use 
202.10 	interoperable electronic health records, including but not limited to the following projects:
202.11 	(1) efforts to plan for and implement fully functional, standards-based interoperable 
202.12 	electronic health records; and
202.13 	(2) purchases and implementation of computer hardware, software, and technology 
202.14 	to fully implement interoperable electronic health records;
202.15 	(c) regional or community-based health information exchange organizations to 
202.16 	connect and facilitate the exchange of health information between eligible health care 
202.17 	entities, including but not limited to the development, testing, and implementation of:
202.18 	(1) data exchange standards, including data, vocabulary, and messaging standards, 
202.19 	for the exchange of health information, provided that the standards are consistent with 
202.20 	state and national standards;
202.21 	(2) security standards necessary to ensure the confidentiality and integrity of health 
202.22 	records;
202.23 	(3) computer interfaces and mechanisms for standardizing health information 
202.24 	exchanged between eligible health care entities;
202.25 	(4) a record locator service for identifying the location of patient health records; or
202.26 	(5) interfaces and mechanisms for implementing patient consent requirements; and
202.27 	(d) community health boards and boards of health as established under chapter 
202.28 	145A to modernize local public health information systems to be standards-based and 
202.29 	interoperable with other electronic health records and information systems, or for 
202.30 	enhanced public health emergency preparedness and response.
202.31 	Grant funds may not be used for construction of health care or other buildings or 
202.32 	facilities.
202.33 		Subd. 3.Allocation of grants. (a) To receive a grant under this section, an eligible 
202.34 	community e-health collaborative, community clinic, regional or community-based health 
202.35 	information exchange, or community health boards and boards of health must submit an 
202.36 	application to the commissioner of health by the deadline established by the commissioner. 
203.1 	A grant may be awarded upon the signing of a grant contract. In awarding grants, the 
203.2 	commissioner shall give preference to projects benefiting providers located in rural and 
203.3 	underserved areas of Minnesota which the commissioner has determined have an unmet 
203.4 	need for the development and funding of electronic health records. Applicants may apply 
203.5 	for and the commissioner may award grants for one-year, two-year, or three-year periods.
203.6 	(b) An application must be on a form and contain information as specified by the 
203.7 	commissioner but at a minimum must contain:
203.8 	(1) a description of the purpose or project for which grant funds will be used; 
203.9 	(2) a description of the problem or problems the grant funds will be used to address, 
203.10 	including an assessment of the likelihood of the project occurring absent grant funding; 
203.11 	(3) a description of achievable objectives, a workplan, budget, budget narrative, a 
203.12 	project communications plan, a timeline for implementation and completion of processes 
203.13 	or projects enabled by the grant, and an assessment of privacy and security issues and a 
203.14 	proposed approach to address these issues;
203.15 	(4) a description of the health care entities and other groups participating in the 
203.16 	project, including identification of the lead entity responsible for applying for and 
203.17 	receiving grant funds; 
203.18 	(5) a plan for how patients and consumers will be involved in development of 
203.19 	policies and procedures related to the access to and interchange of information; 
203.20 	(6) evidence of consensus and commitment among the health care entities and others 
203.21 	who developed the proposal and are responsible for its implementation; and
203.22 	(7) a plan for documenting and evaluating results of the grant. ; and
203.23 	(8) a plan for use of data exchange standards, including data and vocabulary.
203.24 	(c) The commissioner shall review each application to determine whether the 
203.25 	application is complete and whether the applicant and the project are eligible for a 
203.26 	grant. In evaluating applications, the commissioner shall take into consideration factors, 
203.27 	including but not limited to, the following:
203.28 	(1) the degree to which the proposal interconnects the various providers of care with 
203.29 	other health care entities in the applicant's geographic community; 
203.30 	(2) the degree to which the project provides for the interoperability of electronic 
203.31 	health records or related health information technology between the members of the 
203.32 	collaborative, and presence and scope of a description of how the project intends to 
203.33 	interconnect with other providers not part of the project into the future;
203.34 	(3) the degree to which the project addresses current unmet needs pertaining 
203.35 	to interoperable electronic health records in a geographic area of Minnesota and the 
203.36 	likelihood that the needs would not be met absent grant funds; 
204.1 	(4) the applicant's thoroughness and clarity in describing the project, how the project 
204.2 	will improve patient safety, quality of care, and consumer empowerment, and the role of 
204.3 	the various collaborative members;
204.4 	(5) the recommendations of the Health Information and Technology Infrastructure 
204.5 	Advisory Committee; and
204.6 	(6) other factors that the commissioner deems relevant.
204.7 	(d) Grant funds shall be awarded on a three-to-one match basis. Applicants shall 
204.8 	be required to provide $1 in the form of cash or in-kind staff or services for each $3 
204.9 	provided under the grant program.
204.10 	(e) Grants shall not exceed $900,000 per grant. The commissioner has discretion 
204.11 	over the size and number of grants awarded.
204.12 		Subd. 4.Evaluation and report. The commissioner of health shall evaluate the 
204.13 	overall effectiveness of the grant program. The commissioner shall collect progress 
204.14 	and expenditure reports to evaluate the grant program from the eligible community 
204.15 	collaboratives receiving grants. 

204.16 	Sec. 18. [144.966] EARLY HEARING DETECTION AND INTERVENTION 
204.17 	PROGRAM.
204.18 		Subdivision 1.Definitions. (a) "Child" means a person 18 years of age or younger.
204.19 	(b) "False positive rate" means the proportion of infants identified as having a 
204.20 	significant hearing loss by the screening process who are ultimately found to not have a 
204.21 	significant hearing loss.
204.22 	(c) "False negative rate" means the proportion of infants not identified as having 
204.23 	a significant hearing loss by the screening process who are ultimately found to have a 
204.24 	significant hearing loss.
204.25 	(d) "Hearing screening test" means automated auditory brain stem response, 
204.26 	otoacoustic emissions, or another appropriate screening test approved by the Department 
204.27 	of Health.
204.28 	(e) "Hospital" means a birthing health care facility or birthing center licensed in 
204.29 	this state that provides obstetrical services.
204.30 	(f) "Infant" means a child who is not a newborn and has not attained the age of 
204.31 	one year.
204.32 	(g) "Newborn" means an infant 28 days of age or younger.
204.33 	(h) "Parent" means a natural parent, stepparent, adoptive parent, guardian, or 
204.34 	custodian of a newborn or infant.
205.1 		Subd. 2.Newborn Hearing Screening Advisory Committee. (a) The 
205.2 	commissioner of health shall establish a Newborn Hearing Screening Advisory Committee 
205.3 	to advise and assist the Department of Health and the Department of Education in:
205.4 	(1) developing protocols and timelines for screening, rescreening, and diagnostic 
205.5 	audiological assessment and early medical, audiological, and educational intervention 
205.6 	services for children who are deaf or hard-of-hearing;
205.7 	(2) designing protocols for tracking children from birth through age three that may 
205.8 	have passed newborn screening but are at risk for delayed or late onset of permanent 
205.9 	hearing loss;
205.10 	(3) designing a technical assistance program to support facilities implementing the 
205.11 	screening program and facilities conducting rescreening and diagnostic audiological 
205.12 	assessment;
205.13 	(4) designing implementation and evaluation of a system of follow-up and tracking; 
205.14 	and
205.15 	(5) evaluating program outcomes to increase effectiveness and efficiency and ensure 
205.16 	culturally appropriate services for children with a confirmed hearing loss and their families.
205.17 	(b) The commissioner of health shall appoint at least one member from each of the 
205.18 	following groups with no less than two of the members being deaf or hard-of-hearing:
205.19 	(1) a representative from a consumer organization representing culturally deaf 
205.20 	persons;
205.21 	(2) a parent with a child with hearing loss representing a parent organization;
205.22 	(3) a consumer from an organization representing oral communication options;
205.23 	(4) a consumer from an organization representing cued speech communication 
205.24 	options;
205.25 	(5) an audiologist who has experience in evaluation and intervention of infants 
205.26 	and young children;
205.27 	(6) a speech-language pathologist who has experience in evaluation and intervention 
205.28 	of infants and young children;
205.29 	(7) two primary care providers who have experience in the care of infants and young 
205.30 	children, one of which shall be a pediatrician;
205.31 	(8) a representative from the early hearing detection intervention teams;
205.32 	(9) a representative from the Department of Education resource center for the deaf 
205.33 	and hard-of-hearing or the representative's designee;
205.34 	(10) a representative of the Minnesota Commission Serving Deaf and Hard of 
205.35 	Hearing People;
206.1 	(11) a representative from the Department of Human Services Deaf and Hard of 
206.2 	Hearing Services Division;
206.3 	(12) one or more of the Part C coordinators from the Department of Education, 
206.4 	the Department of Health, or the Department of Human Services or the department's 
206.5 	designees;
206.6 	(13) the Department of Health early hearing detection and intervention coordinator;
206.7 	(14) two birth hospital representatives from one rural and one urban hospital;
206.8 	(15) a pediatric geneticist;
206.9 	(16) an otolaryngologist;
206.10 	(17) a representative from the Newborn Screening Advisory Committee under 
206.11 	this subdivision; and
206.12 	(18) a representative of the Department of Education regional low-incidence 
206.13 	facilitators.
206.14 	The commissioner must complete the appointments required under this subdivision by 
206.15 	September 1, 2007.
206.16 	(c) The Department of Health member shall chair the first meeting of the committee. 
206.17 	At the first meeting, the committee shall elect a chair from its membership. The committee 
206.18 	shall meet at the call of the chair, at least four times a year. The committee shall adopt 
206.19 	written bylaws to govern its activities. The Department of Health shall provide technical 
206.20 	and administrative support services as required by the committee. These services shall 
206.21 	include technical support from individuals qualified to administer infant hearing screening, 
206.22 	rescreening, and diagnostic audiological assessments.
206.23 	Members of the committee shall receive no compensation for their service, but 
206.24 	shall be reimbursed as provided in section 15.059 for expenses incurred as a result of 
206.25 	their duties as members of the committee.
206.26 	(d) This subdivision expires June 30, 2013.
206.27 		Subd. 3.Early hearing detection and intervention programs.  All hospitals 
206.28 	shall establish an early hearing detection and intervention (EHDI) program. Each EHDI 
206.29 	program shall:
206.30 	(1) in advance of any hearing screening testing, provide to the newborn's or infant's 
206.31 	parents or parent information concerning the nature of the screening procedure, applicable 
206.32 	costs of the screening procedure, the potential risks and effects of hearing loss, and the 
206.33 	benefits of early detection and intervention;
206.34 	(2) comply with parental consent under section 144.125, subdivision 3;
206.35 	(3) develop policies and procedures for screening and rescreening based on 
206.36 	Department of Health recommendations;
207.1 	(4) provide appropriate training and monitoring of individuals responsible for 
207.2 	performing hearing screening tests as recommended by the Department of Health;
207.3 	(5) test the newborn's hearing prior to discharge, or, if the newborn is expected to 
207.4 	remain in the hospital for a prolonged period, testing shall be performed prior to three 
207.5 	months of age or when medically feasible;
207.6 	(6) develop and implement procedures for documenting the results of all hearing 
207.7 	screening tests;
207.8 	(7) inform the newborn's or infant's parents or parent, primary care physician, and 
207.9 	the Department of Health according to recommendations of the Department of Health of 
207.10 	the results of the hearing screening test or rescreening if conducted, or if the newborn or 
207.11 	infant was not successfully tested. The hospital that discharges the newborn or infant to 
207.12 	home is responsible for the screening; and
207.13 	(8) collect performance data specified by the Department of Health. 
207.14 		Subd. 4.Notification and information. (a) Notification to the parents or parent, 
207.15 	primary care provider, and the Department of Health shall occur prior to discharge or no 
207.16 	later than ten days following the date of testing. Notification shall include information 
207.17 	recommended by the Department of Health.
207.18 	(b) A physician, nurse, midwife, or other health professional attending a birth outside 
207.19 	a hospital or institution shall provide information, orally and in writing, as established by 
207.20 	the Department of Health, to parents regarding places where the parents may have their 
207.21 	infant's hearing screened and the importance of the screening.
207.22 	(c) The professional conducting the diagnostic procedure to confirm the hearing loss 
207.23 	must report the results to the parents, primary care provider, and Department of Health 
207.24 	according to the Department of Health recommendations.
207.25 		Subd. 5.Oversight responsibility. The Department of Health shall exercise 
207.26 	oversight responsibility for EHDI programs, including establishing a performance data set 
207.27 	and reviewing performance data collected by each hospital.
207.28 		Subd. 6.Civil and criminal immunity and penalties. (a) No physician or hospital 
207.29 	shall be civilly or criminally liable for failure to conduct hearing screening testing.
207.30 	(b) No physician, midwife, nurse, other health professional, or hospital acting in 
207.31 	compliance with this section shall be civilly or criminally liable for any acts conforming 
207.32 	with this section, including furnishing information required according to this section.
207.33 		Subd. 7.Fees. The commissioner shall charge  a fee so that the total of fees 
207.34 	collected will approximate the costs of implementing and maintaining a system to follow 
207.35 	up on infants and provide technical assistance, a tracking system, data management, 
208.1 	and evaluation. The  fee is $21 per screening. This fee is in addition to the fee charged 
208.2 	under section 144.125.

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

208.4 	Sec. 19. Minnesota Statutes 2006, section 144D.03, subdivision 1, is amended to read:
208.5 		Subdivision 1.Registration procedures. The commissioner shall establish forms 
208.6 	and procedures for annual registration of housing with services establishments. The 
208.7 	commissioner shall charge an annual registration fee of $35 $155. No fee shall be 
208.8 	refunded. A registered establishment shall notify the commissioner within 30 days of the 
208.9 	date it is no longer required to be registered under this chapter or of any change in the 
208.10 	business name or address of the establishment, the name or mailing address of the owner 
208.11 	or owners, or the name or mailing address of the managing agent. There shall be no 
208.12 	fee for submission of the notice.

208.13 	Sec. 20. [145.9269] FEDERALLY QUALIFIED HEALTH CENTERS.
208.14 		Subdivision 1.Definitions. For purposes of this section, "federally qualified health 
208.15 	center" means an entity that is receiving a grant under United States Code, title 42, 
208.16 	section 254B, or, based on the recommendation of the Health Resources and Services 
208.17 	Administration within the Public Health Service, is determined by the secretary to meet 
208.18 	the requirements for receiving such a grant.
208.19 		Subd. 2.Allocation of subsidies. The commissioner of health shall distribute 
208.20 	subsidies to federally qualified health centers operating in Minnesota to continue, expand, 
208.21 	and improve federally qualified health center services to low-income populations. The 
208.22 	commissioner shall distribute the funds appropriated under this section to federally 
208.23 	qualified health centers operating in Minnesota as of January 1, 2007. The amount of 
208.24 	each subsidy shall be in proportion to each federally qualified health center's amount of 
208.25 	discounts granted to patients during calendar year 2006 as reported on the federal Uniform 
208.26 	Data System report in conformance with the Bureau of Primary Health Care Program 
208.27 	Expectations Policy Information Notice 98-23, except that each eligible federally qualified 
208.28 	health center shall receive at least two percent but no more than 30 percent of the total 
208.29 	amount of money available under this section.

208.30 	Sec. 21. Minnesota Statutes 2006, section 148.5194, is amended by adding a 
208.31 	subdivision to read:
208.32 		Subd. 7a.Audiologist hearing instrument dispensing examination fee. For 
208.33 	persons meeting the requirements of section 148.515, subdivision 2, the fee for the 
209.1 	practical portion of the hearing instrument dispensing examination is $250 each time it 
209.2 	is taken.

209.3 	Sec. 22. Minnesota Statutes 2006, section 148.6445, subdivision 1, is amended to read:
209.4 		Subdivision 1.Initial licensure fee. The initial licensure fee for occupational 
209.5 	therapists is $180 $145. The initial licensure fee for occupational therapy assistants is 
209.6 	$100 $80. The commissioner shall prorate fees based on the number of quarters remaining 
209.7 	in the biennial licensure period.

209.8 	Sec. 23. Minnesota Statutes 2006, section 148.6445, subdivision 2, is amended to read:
209.9 		Subd. 2.Licensure renewal fee. The biennial licensure renewal fee for 
209.10 	occupational therapists is $180 $145. The biennial licensure renewal fee for occupational 
209.11 	therapy assistants is $100 $80.

209.12 	Sec. 24. Minnesota Statutes 2006, section 149A.52, subdivision 3, is amended to read:
209.13 		Subd. 3.Application procedure; documentation; initial inspection. An applicant 
209.14 	for a license to operate a crematory shall submit to the commissioner a completed 
209.15 	application. A completed application includes:
209.16 	(1) a completed application form, as provided by the commissioner;
209.17 	(2) proof of business form and ownership; and
209.18 	(3) proof of liability insurance coverage or other financial documentation, as 
209.19 	determined by the commissioner, that demonstrates the applicant's ability to respond in 
209.20 	damages for liability arising from the ownership, maintenance, management, or operation 
209.21 	of a crematory.
209.22 	Upon receipt of the application and appropriate fee, the commissioner shall review 
209.23 	and verify all information. Upon completion of the verification process and resolution 
209.24 	of any deficiencies in the application information, the commissioner shall conduct an 
209.25 	initial inspection of the premises to be licensed. After the inspection and resolution of 
209.26 	any deficiencies found and any reinspections as may be necessary, the commissioner shall 
209.27 	make a determination, based on all the information available, to grant or deny licensure. If 
209.28 	the commissioner's determination is to grant the license, the applicant shall be notified and 
209.29 	the license shall issue and remain valid for a period prescribed on the license, but not to 
209.30 	exceed one calendar year from the date of issuance of the license. If the commissioner's 
209.31 	determination is to deny the license, the commissioner must notify the applicant, in 
209.32 	writing, of the denial and provide the specific reason for denial.

210.1 	Sec. 25. [149A.65] FEES.
210.2 		Subdivision 1.Generally. This section establishes the fees for registrations, 
210.3 	examinations, initial and renewal licenses, and late fees authorized under this chapter.
210.4 		Subd. 2.Mortuary science fees. Fees for mortuary science are:
210.5 	(1) $50 for the initial and renewal registration of a mortuary science intern;
210.6 	(2) $100 for the mortuary science examination;
210.7 	(3) $125 for issuance of initial and renewal mortuary science licenses;
210.8 	(4) $25 late fee charge for a license renewal; and
210.9 	(5) $200 for issuing a mortuary science license by endorsement.
210.10 		Subd. 3.Funeral directors. The license renewal fee for funeral directors is $125. 
210.11 	The late fee charge for a license renewal is $25.
210.12 		Subd. 4.Funeral establishments. The initial and renewal fee for funeral 
210.13 	establishments is $300. The late fee charge for a license renewal is $25.
210.14 		Subd. 5.Crematories. The initial and renewal fee for a crematory is $300. The 
210.15 	late fee charge for a license renewal is $25.

210.16 	Sec. 26. Minnesota Statutes 2006, section 149A.97, subdivision 7, is amended to read:
210.17 		Subd. 7.Reports to commissioner. Every funeral provider lawfully doing business 
210.18 	in Minnesota that accepts funds under subdivision 2 must make a complete annual report 
210.19 	to the commissioner. The reports may be on forms provided by the commissioner or 
210.20 	substantially similar forms containing, at least, identification and the state of each trust 
210.21 	account, including all transactions involving principal and accrued interest, and must be 
210.22 	filed by March 31 of the calendar year following the reporting year along with a filing 
210.23 	fee of $15 $25 for each report. Fees shall be paid to the commissioner of finance, state of 
210.24 	Minnesota, for deposit in the state government special revenue fund in the state treasury. 
210.25 	Reports must be signed by an authorized representative of the funeral provider and 
210.26 	notarized under oath. All reports to the commissioner shall be reviewed for account 
210.27 	inaccuracies or possible violations of this section. If the commissioner has a reasonable 
210.28 	belief to suspect that there are account irregularities or possible violations of this section, 
210.29 	the commissioner shall report that belief, in a timely manner, to the state auditor. The 
210.30 	commissioner shall also file an annual letter with the state auditor disclosing whether or 
210.31 	not any irregularities or possible violations were detected in review of the annual trust 
210.32 	fund reports filed by the funeral providers. This letter shall be filed with the state auditor 
210.33 	by May 31 of the calendar year following the reporting year.

210.34 	Sec. 27. Minnesota Statutes 2006, section 153A.14, subdivision 4a, is amended to read:
211.1 		Subd. 4a.Trainees. (a) A person who is not certified under this section may dispense 
211.2 	hearing instruments as a trainee for a period not to exceed 12 months if the person:
211.3 	(1) submits an application on forms provided by the commissioner;
211.4 	(2) is under the supervision of a certified dispenser meeting the requirements of this 
211.5 	subdivision or a licensed audiologist meeting the requirements of sections 148.511 to 
211.6 	148.5198; and
211.7 	(3) meets all requirements for certification except passage of the examination 
211.8 	required by this section.
211.9 	(b) A certified hearing instrument dispenser may not supervise more than two 
211.10 	trainees at the same time and may not directly supervise more than one trainee at a time. 
211.11 	The certified dispenser is responsible for all actions or omissions of a trainee in connection 
211.12 	with the dispensing of hearing instruments. A certified dispenser may not supervise a 
211.13 	trainee if there are any commissioner, court, or other orders, currently in effect or issued 
211.14 	within the last five years, that were issued with respect to an action or omission of a 
211.15 	certified dispenser or a trainee under the certified dispenser's supervision.
211.16 	Until taking and passing the practical examination testing the techniques described 
211.17 	in subdivision 2h, paragraph (a), clause (2), trainees must be directly supervised in all 
211.18 	areas described in subdivision 4b, and the activities tested by the practical examination. 
211.19 	Thereafter, trainees may dispense hearing instruments under indirect supervision until 
211.20 	expiration of the trainee period. Under indirect supervision, the trainee must complete two 
211.21 	monitored activities a week. Monitored activities may be executed by correspondence, 
211.22 	telephone, or other telephonic devices, and include, but are not limited to, evaluation 
211.23 	of audiograms, written reports, and contracts. The time spent in supervision must be 
211.24 	recorded and the record retained by the supervisor.

211.25 	Sec. 28. Minnesota Statutes 2006, section 153A.17, is amended to read:
211.26 	153A.17 EXPENSES; FEES.
211.27 	The expenses for administering the certification requirements including the 
211.28 	complaint handling system for hearing aid dispensers in sections 153A.14 and 153A.15
211.29 	and the Consumer Information Center under section 153A.18 must be paid from initial 
211.30 	application and examination fees, renewal fees, penalties, and fines. All fees are 
211.31 	nonrefundable. The initial and annual renewal certificate application fee is $350 $1,000, 
211.32 	the examination fee is $250 $700 for the written portion and $250 $700 for the practical 
211.33 	portion each time one or the other is taken, and the trainee application fee is $200. 
211.34 	Effective July 1, 2007, a surcharge of $200 shall be paid at the time of certification 
211.35 	application or renewal until June 30, 2011, to recover the commissioner's accumulated 
212.1 	direct expenditures for administering the requirements of this chapter. The penalty fee for 
212.2 	late submission of a renewal application is $200. The fee for verification of certification 
212.3 	to other jurisdictions or entities is $25. All fees, penalties, and fines received must be 
212.4 	deposited in the state government special revenue fund. The commissioner may prorate 
212.5 	the certification fee for new applicants based on the number of quarters remaining in 
212.6 	the annual certification period. 

212.7 	Sec. 29. Laws 2005, First Special Session chapter 4, article 9, section 3, subdivision 2, 
212.8 	is amended to read:

212.9212.10
	Subd. 2.Community and Family Health 
Improvement

212.11	Summary by Fund
	
212.12	General
	40,413,000
	40,382,000
	
212.13
212.14	State Government 
Special Revenue
	141,000
	128,000
	
212.15	Health Care Access
	3,510,000
	3,516,000
	
212.16	Federal TANF
	6,000,000
	6,000,000
	
212.17 	FAMILY PLANNING BASE 
212.18 	REDUCTION. Base level funding for 
212.19 	the family planning special projects grant 
212.20 	program is reduced by $1,877,000 each 
212.21 	year of the biennium beginning July 1, 
212.22 	2007, provided that this reduction shall 
212.23 	only take place upon full implementation of 
212.24 	the family planning project section of the 
212.25 	1115 waiver. Notwithstanding Minnesota 
212.26 	Statutes, section 145.925, the commissioner 
212.27 	shall give priority to community health care 
212.28 	clinics providing family planning services 
212.29 	that either serve a high number of women 
212.30 	who do not qualify for medical assistance 
212.31 	or are unable to participate in the medical 
212.32 	assistance program as a medical assistance 
212.33 	provider when allocating the remaining 
212.34 	appropriations. Notwithstanding section 15, 
212.35 	this paragraph shall not expire.
213.1 	SHAKEN BABY VIDEO. Of the 
213.2 	state government special revenue fund 
213.3 	appropriation, $13,000 in 2006 is 
213.4 	appropriated to the commissioner of health 
213.5 	to provide a video to hospitals on shaken 
213.6 	baby syndrome. The commissioner of health 
213.7 	shall assess a fee to hospitals to cover the 
213.8 	cost of the approved shaken baby video and 
213.9 	the revenue received is to be deposited in the 
213.10 	state government special revenue fund.

213.11 	Sec. 30. COMMUNITY INITIATIVES TO COVER THE UNINSURED AND 
213.12 	UNDERINSURED.
 213.13 		Subdivision 1.Community partnerships. The commissioner of health shall 
213.14 	provide planning grants to up to three community partnerships that satisfy the requirements 
213.15 	in this section. A community partnership is eligible for a grant if the community 
213.16 	partnership includes:
213.17 	(1) at least one county;
213.18 	(2) at least one local hospital;
213.19 	(3) at least one local employer who collectively provides at least 300 jobs in the 
213.20 	community;
213.21 	(4) at least one school system;
213.22 	(5) at least one of the following:
213.23 	(i) one or more integrated health care clinics or physician groups. For purposes of 
213.24 	this section, "integrated health care" means integrated mental health and primary care; or
213.25 	(ii) one or more health care clinics or physician groups and one or more mental 
213.26 	health clinics; and
213.27 	(6) a third-party payer, which may include a county-based purchasing plan, an 
213.28 	employer, or a health plan company.
213.29 		Subd. 2Proposal requirements. The planning grants shall be used by community 
213.30 	partnerships to develop a comprehensive proposal to provide affordable health care 
213.31 	services to uninsured and underinsured individuals with chronic health conditions through 
213.32 	an integrated community partnership system. A community partnership requesting a 
213.33 	planning grant must submit to the commissioner a planning proposal that includes:
213.34 	(1) methods for identifying potential uninsured or underinsured individuals and 
213.35 	patients who have or who are at risk of developing a chronic health condition;
214.1 	(2) methods to integrate and coordinate medical, mental health, and chemical health 
214.2 	services with services provided through county social services, corrections, public health, 
214.3 	school districts, and health care providers;
214.4 	(3) providing early intervention and prevention activities; and
214.5 	(4) methods to identify and support accountability across public and private systems, 
214.6 	including means to measure outcomes and economic savings from providing services 
214.7 	through an integrated system.
214.8 		Subd. 3.Planning grant criteria. (a) Proposals for planning grants shall be 
214.9 	submitted to the commissioner. Preference shall be given to planning proposals that:
214.10 	(1) have broad community support from local business, providers, counties, and 
214.11 	other public and private organizations;
214.12 	(2) propose to provide services to uninsured or underinsured individuals of every 
214.13 	age who have or are at risk of developing multiple, co-occuring chronic conditions;
214.14 	(3) integrate or coordinate resources from multiple sources; and
214.15 	(4) demonstrate how administrative costs for health plan companies and providers 
214.16 	can be reduced through greater simplification, coordination, consolidation, standardization, 
214.17 	reducing billing errors, or other methods.
214.18 	(b) Community partnerships receiving a planning grant under this section shall 
214.19 	submit their proposed initiatives to the commissioner by December 15, 2007.
214.20 	(c) The commissioner shall submit a report to the legislature by February 15, 2008, 
214.21 	that:
214.22 	(1) identifies the community partnerships that received a planning grant under this 
214.23 	section; and
214.24 	(2) summarizes the planned initiatives submitted to the commissioner based on 
214.25 	the requirements in this section.

214.26 	Sec. 31. CERVICAL CANCER PREVENTION AND HUMAN PAPILLOMA 
214.27 	VIRUS VACCINE STUDY.
 214.28 	The commissioner of health shall reconvene the cervical cancer elimination study 
214.29 	required under Laws 2005, First Special Session chapter 4, article 6, section 52, to conduct 
214.30 	a study, in collaboration with the Minnesota Immunization Practices Advisory Committee, 
214.31 	on the human papilloma virus vaccine, including, but not limited to, the following: 
214.32 	(1) the risks and benefits of the human papilloma virus vaccine;
214.33 	(2) the availability and effectiveness of the vaccine;
214.34 	(3) the extent to which health plan companies cover the cost of this vaccination; and
214.35 	(4) ways to cover the cost of vaccination for persons without coverage.
215.1 	The commissioner shall submit a report to the legislature by February 1, 2008, on 
215.2 	the findings of the study and recommendations as to whether the human papilloma virus 
215.3 	vaccine should be made mandatory statewide.

215.4 	Sec. 32.  REPEALER.
 215.5 	(a) Minnesota Statutes 2006, section 62J.692, subdivision 10, is repealed effective 
215.6 	January 1, 2008.
215.7 	(b) Minnesota Rules, part 4610.2800, is repealed.
215.8 	(c) Laws 2004, chapter 288, article 6, section 27, is repealed.

215.9 	ARTICLE 8
215.10 	HEALTH CARE - MISCELLANEOUS

215.11 	Section 1. Minnesota Statutes 2006, section 62E.02, subdivision 7, is amended to read:
215.12 		Subd. 7.Dependent. "Dependent" means a spouse or unmarried child under the 
215.13 	age of 19 years, a dependent child who is a student under the age of 25, or a dependent 
215.14 	child of any age who is disabled.

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

215.17 	Sec. 2. Minnesota Statutes 2006, section 62J.07, subdivision 1, is amended to read:
215.18 		Subdivision 1.Legislative oversight. The Legislative Commission on Health 
215.19 	Care Access reviews the activities of the commissioner of health, the Health Technology 
215.20 	Advisory Committee, and all other state agencies involved in the implementation and 
215.21 	administration of this chapter, including efforts to obtain federal approval through waivers 
215.22 	and other means shall make recommendations to the legislature on how to achieve the 
215.23 	goal of universal health coverage as described in section 62Q.165. The recommendations 
215.24 	shall include a timetable in which measurable progress must be achieved toward this goal. 
215.25 	The commission shall submit to the legislature by January 15, 2008, the recommendations 
215.26 	and corresponding timetable.

215.27 	Sec. 3. Minnesota Statutes 2006, section 62J.07, subdivision 3, is amended to read:
215.28 		Subd. 3.Reports to the commission. The commissionercommissioners of 
215.29 	health, human services, commerce, and the Health Technology Advisory Committee shall 
215.30 	report on their activities annually and at other times at the request of the Legislative 
215.31 	Commission on Health Care Access. The commissioners of health, commerce, and human 
216.1 	services shall provide periodic reports to the legislative commission on the progress of 
216.2 	rulemaking that is authorized or required under this chapter and shall notify members 
216.3 	of the commission when a draft of a proposed rule has been completed and scheduled 
216.4 	for publication in the State Register. At the request of a member of the commission, 
216.5 	a commissioner shall provide a description and a copy of a proposed rule other state 
216.6 	agencies shall provide assistance and technical support to the commission at the request 
216.7 	of the commission. The commission may convene subcommittees to provide additional 
216.8 	assistance and advice to the commission.

216.9 	Sec. 4. Minnesota Statutes 2006, section 62J.495, is amended to read:
216.10 	62J.495 HEALTH INFORMATION TECHNOLOGY AND 
216.11 	INFRASTRUCTURE ADVISORY COMMITTEE.
216.12 		Subdivision 1.Establishment; members; duties Implementation. By January 
216.13 	1, 2015, all hospitals and health care providers must have in place an interoperable 
216.14 	electronic health records system within their hospital system or clinical practice setting. 
216.15 	The commissioner of health, in consultation with the Health Information Technology and 
216.16 	Infrastructure Advisory Committee, shall develop a statewide plan to meet this goal, 
216.17 	including uniform standards to be used for the interoperable system for sharing and 
216.18 	synchronizing patient data across systems. The standards must be compatible with federal 
216.19 	efforts. The uniform standards must be developed by January 1, 2009, with a status report 
216.20 	on the development of these standards submitted to the legislature by January 15, 2008.
216.21 		Subd. 2. Health Information Technology and Infrastructure Advisory 
216.22 	Committee. (a) The commissioner shall establish a Health Information Technology 
216.23 	and Infrastructure Advisory Committee governed by section 15.059 to advise the 
216.24 	commissioner on the following matters:
216.25 	(1) assessment of the use of health information technology by the state, licensed 
216.26 	health care providers and facilities, and local public health agencies;
216.27 	(2) recommendations for implementing a statewide interoperable health information 
216.28 	infrastructure, to include estimates of necessary resources, and for determining standards 
216.29 	for administrative data exchange, clinical support programs, patient privacy requirements, 
216.30 	and maintenance of the security and confidentiality of individual patient data; and
216.31 	(3) other related issues as requested by the commissioner.
216.32 	(b) The members of the Health Information Technology and Infrastructure Advisory 
216.33 	Committee shall include the commissioners, or commissioners' designees, of health, 
216.34 	human services, administration, and commerce and additional members to be appointed 
216.35 	by the commissioner to include persons representing Minnesota's local public health 
217.1 	agencies, licensed hospitals and other licensed facilities and providers, private purchasers, 
217.2 	the medical and nursing professions, health insurers and health plans, the state quality 
217.3 	improvement organization, academic and research institutions, consumer advisory 
217.4 	organizations with an interest and expertise in health information technology, and other 
217.5 	stakeholders as identified by the Health Information Technology and Infrastructure 
217.6 	Advisory Committee.
217.7 		Subd. 2.Annual report. (c) The commissioner shall prepare and issue an annual 
217.8 	report not later than January 30 of each year outlining progress to date in implementing a 
217.9 	statewide health information infrastructure and recommending future projects.
217.10 		Subd. 3.Expiration. (d) Notwithstanding section 15.059, this sectionsubdivision 
217.11 	expires June 30, 2009 2015.

217.12 	Sec. 5. Minnesota Statutes 2006, section 62J.82, is amended to read:
217.13 	62J.82 HOSPITAL CHARGEINFORMATION REPORTING DISCLOSURE.
217.14 		Subdivision 1.Required information. The Minnesota Hospital Association shall 
217.15 	develop a Web-based system, available to the public free of charge, for reporting charge 
217.16 	information the following, for Minnesota residents,:
217.17 	(1) hospital-specific performance on the measures of care developed under section 
217.18 	256B.072 for acute myocardial infarction, heart failure, and pneumonia; 
217.19 	(2) by January 1, 2009, hospital-specific performance on the public reporting 
217.20 	measures for hospital-acquired infections as published by the National Quality Forum 
217.21 	and collected by the Minnesota Hospital Association and Stratis Health in collaboration 
217.22 	with infection control practitioners; and 
217.23 	(3) charge information, including, but not limited to, number of discharges, average 
217.24 	length of stay, average charge, average charge per day, and median charge, for each of the 
217.25 	50 most common inpatient diagnosis-related groups and the 25 most common outpatient 
217.26 	surgical procedures as specified by the Minnesota Hospital Association. 
217.27 		Subd. 2.Web site. The Web site must provide information that compares 
217.28 	hospital-specific data to hospital statewide data. The Web site must be established by 
217.29 	October 1, 2006, and must be updated annually. The commissioner shall provide a link to 
217.30 	this reporting information on the department's Web site.
217.31 		Subd. 3.Enforcement. The commissioner shall provide a link to this information 
217.32 	on the department's Web site. If a hospital does not provide this information to the 
217.33 	Minnesota Hospital Association, the commissioner of health may require the hospital to 
217.34 	do so according to section 144.55, subdivision 6. The commissioner shall provide a link to 
217.35 	this information on the department's Web site.

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

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

218.12 	Sec. 7. Minnesota Statutes 2006, section 62Q.165, subdivision 1, is amended to read:
218.13 		Subdivision 1.Definition. It is the commitment of the state to achieve universal 
218.14 	health coverage for all Minnesotans by the year 2010. Universal coverage is achieved 
218.15 	when:
218.16 	(1) every Minnesotan has access to a full range of quality health care services;
218.17 	(2) every Minnesotan is able to obtain affordable health coverage which pays for the 
218.18 	full range of services, including preventive and primary care; and
218.19 	(3) every Minnesotan pays into the health care system according to that person's 
218.20 	ability.

218.21 	Sec. 8. Minnesota Statutes 2006, section 62Q.165, subdivision 2, is amended to read:
218.22 		Subd. 2.Goal. It is the goal of the state to make continuous progress toward 
218.23 	reducing the number of Minnesotans who do not have health coverage so that by January 
218.24 	1, 2000 2010, fewer than four percent of the state's population will be without health 
218.25 	coverage all Minnesota residents have access to affordable health care. The goal will be
218.26 	achieved byIn achieving this goal, a number of options shall be considered, including 
218.27 	improving access to private health coverage through insurance reforms and market 
218.28 	reforms, by making health coverage more affordable for low-income Minnesotans through 
218.29 	purchasing pools and state subsidies, and by reducing the cost of health coverage through 
218.30 	cost containment programs and methods of ensuring that all Minnesotans are paying 
218.31 	into the system according to their ability.

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

219.1 	Sec. 9. HEALTH PLAN PURCHASING POOL STUDY GROUP.
 219.2 		Subdivision 1.Creation; membership. (a) A health plan purchasing pool study 
219.3 	group is created to study and make recommendations regarding the creation of a voluntary, 
219.4 	statewide health plan purchasing pool that would contract directly with providers to 
219.5 	provide affordable health coverage to eligible Minnesota residents. The study group is 
219.6 	composed of: 
219.7 	(1) three members of the senate appointed by the Subcommittee on Committees of 
219.8 	the Committee on Rules and Administration, including one member of the minority;
219.9 	(2) three members of the house of representatives, two from the majority party 
219.10 	appointed by the speaker of the house of representatives, and one from the minority party 
219.11 	appointed by the minority leader of the house of representatives;
219.12 	(3) the attorney general or the attorney general's designated representative; 
219.13 	(4) three representatives of health care providers appointed as follows:
219.14 	(i) one member appointed by the governor;
219.15 	(ii) one member appointed by the speaker of the house; and
219.16 	(iii) one member appointed by the Subcommittee on Committees of the senate 
219.17 	Committee on Rules and Administration;
219.18 	(5) one member selected by the American Federation of State, County, and 
219.19 	Municipal employees;
219.20 	(6) one member selected by the Minnesota Association of Professional Employees;
219.21 	(7) one member selected by Education Minnesota;
219.22 	(8) one member selected by the Minnesota Business Partnership; and
219.23 	(9) one member selected by the Metropolitan Interdependent Business Organization.
219.24 	All appointments made under this subdivision must be made within 30 days of the 
219.25 	effective date of this act.
219.26 	(b) The attorney general or the attorney general's designee shall convene the first 
219.27 	meeting of the study group. The study group shall select its chair at the first meeting.
219.28 		Subd. 2.Study; report. The study group shall study and make recommendations 
219.29 	on the following issues related to the creation, maintenance, and funding of a voluntary, 
219.30 	statewide health plan purchasing pool to provide comprehensive, cost-effective, and 
219.31 	medically appropriate health coverage to all public and private employees in Minnesota 
219.32 	and all Minnesota residents:
219.33 	(1) the creation of an independent public entity to administer the pool; 
219.34 	(2) eligibility and participation requirements for existing public and private health 
219.35 	care purchasing pools, public and private employers, and residents of this state; 
220.1 	(3) how to contract directly with providers to provide comprehensive coverage for 
220.2 	preventive, mental health, dental and other medical services, and comprehensive drug 
220.3 	benefits to enrollees and maximize the cost savings and other efficiencies that a large 
220.4 	purchasing pool  would be expected to generate without the need for a public subsidy; 
220.5 	(4) provisions that allow the pool to contract directly with health care providers 
220.6 	to provide coverage to enrollees;
220.7 	(5) incentives designed to attract and retain the maximum number of enrollees; 
220.8 	(6) recommendations for the administration of the pool and the plans that will be 
220.9 	available to enrollees including, but not limited to, recommendations to keep the pool 
220.10 	solvent and profitable so that public subsidies are not necessary; and 
220.11 	(7) other elements the study group concludes are necessary or desirable for the 
220.12 	pool to possess. 
220.13 	The study group shall submit its report and the draft legislation necessary to 
220.14 	implement its recommendations to the chairs of the legislative committees and divisions 
220.15 	with jurisdiction over health care policy and finance, the Health Care Access Commission, 
220.16 	and the governor by February 1, 2008. 
220.17 		Subd. 3.Staffing. State agencies shall assist the study group with any requests for 
220.18 	information the study group considers necessary to complete the study and report under 
220.19 	subdivision 2.
220.20 		Subd. 4.Removal; vacancies; expenses. Removal of members, vacancies, and 
220.21 	expenses for members shall be as provided in Minnesota Statutes, section 15.059.
220.22 		Subd. 5.Expiration. This section expires after the submission of the report as 
220.23 	required in subdivision 2.

220.24 	Sec. 10. ADMINISTRATIVE SIMPLIFICATION.
 220.25 	All health care providers and health plans that contract with the state of Minnesota 
220.26 	to provide health care services either through the health care programs administered 
220.27 	under Minnesota Statutes, chapters 256B, 256D, and 256L, or through the state employee 
220.28 	group insurance program administered under Minnesota Statutes, chapter 43A, must 
220.29 	use and accept the uniform billing forms and coding requirements established by the 
220.30 	Administrative Uniformity Committee by January 1, 2009.

220.31 	Sec. 11.  REPEALER.
 220.32 	Minnesota Statutes 2006, section 62A.301, is repealed.

221.1 	ARTICLE 9
221.2 	HUMAN SERVICES APPROPRIATIONS

221.3	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
221.4 	The amounts shown in this section summarize direct appropriations, by fund, made 
221.5 	in this article.

221.6			2008
		2009
		Total
	
221.7	General
	$
	4,704,029,000
	$
	5,108,412,000
	$
	9,812,441,000
	
221.8
221.9	State Government Special 
Revenue
		59,736,000
		59,149,000
		118,885,000
	
221.10	Health Care Access
		455,980,000
		539,034,000
		995,014,000
	
221.11	Federal TANF
		263,973,000
		277,817,000
		541,790,000
	
221.12	Lottery Prize Fund
		2,186,000
		1,791,000
		3,977,000
	
221.13	Total
	$
	5,486,107,000
	$
	5,986,300,000
	$
	11,472,407,000

221.14	Sec. 2. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
221.15 	The sums shown in the columns marked "Appropriations" are appropriated to the 
221.16 	agencies and for the purposes specified in this article. The appropriations are from the 
221.17 	general fund, or another named fund, and are available for the fiscal years indicated 
221.18 	for each purpose. The figures "2008" and "2009" used in this article mean that the 
221.19 	appropriations listed under them are available for the fiscal year ending June 30, 2008, or 
221.20 	June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 
221.21 	year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal 
221.22 	year ending June 30, 2007, are effective the day following final enactment.

221.23				APPROPRIATIONS
	
221.24				Available for the Year
	
221.25				Ending June 30
	
221.26					2008
		2009

221.27	Sec. 3. HUMAN SERVICES

221.28	Subdivision 1.Total Appropriation
 	$
	5,271,550,000
	$
	5,776,015,000

221.29	Appropriations by Fund
	
221.30		2008
	2009
	
221.31	General
	4,580,953,000
	4,988,115,000
	
221.32
221.33	State Government 
Special Revenue
	550,000
	567,000
	
221.34	Health Care Access
	429,888,000
	513,425,000
	
221.35	Federal TANF
	257,973,000
	271,817,000
	
221.36	Lottery Prize Fund
	2,186,000
	2,091,000
	
222.1 	The amounts that may be spent for each 
222.2 	purpose are specified in the following 
222.3 	subdivisions.
222.4 	Pay for Performance. (a) Of this 
222.5 	appropriation, $272,000 each year shall 
222.6 	be deposited in a health improvement 
222.7 	account by the commissioner of finance and 
222.8 	shall be available to the commissioner of 
222.9 	human services only under the following 
222.10 	circumstances:
222.11 	(1) $272,000 shall be made available by 
222.12 	the commissioner of finance on January 1, 
222.13 	2009, if the average processing time for 
222.14 	MinnesotaCare applications is 30 days or 
222.15 	less during the period October 1, 2007, to 
222.16 	September 30, 2008; and 
222.17 	(2) $272,000 shall be made available by 
222.18 	the commissioner of finance on January 1, 
222.19 	2009, if the commissioner has initiated a 
222.20 	separate treatment program for persons in the 
222.21 	Minnesota sex offenders program who are 
222.22 	between the ages of 18 and 25 by January 
222.23 	1, 2008.
222.24 	(b) Money remaining in the health 
222.25 	improvement account on June 30, 2009, shall 
222.26 	not cancel but shall remain in the account 
222.27 	until appropriated by law.
222.28 	(c) Notwithstanding any contrary provision 
222.29 	of this article, this rider shall not expire.
222.30 	Receipts for Systems Projects.
222.31 	Appropriations and federal receipts for 
222.32 	information system projects for MAXIS, 
222.33 	PRISM, MMIS, and SSIS must be deposited 
222.34 	in the state system account authorized in 
222.35 	Minnesota Statutes, section 256.014. Money 
223.1 	appropriated for computer projects approved 
223.2 	by the Minnesota Office of Enterprise 
223.3 	Technology, funded by the legislature, and 
223.4 	approved by the commissioner of finance, 
223.5 	may be transferred from one project to 
223.6 	another and from development to operations 
223.7 	as the commissioner of human services 
223.8 	considers necessary. Any unexpended 
223.9 	balance in the appropriation for these 
223.10 	projects does not cancel but is available for 
223.11 	ongoing development and operations.
223.12 	Nonfederal Share Transfers. The 
223.13 	nonfederal share of activities for which 
223.14 	federal administrative reimbursement is 
223.15 	appropriated to the commissioner may be 
223.16 	transferred to the special revenue fund.
223.17 	TANF Work Participation Requirements.
223.18 	In the event that Minnesota satisfies federal 
223.19 	work participation requirements during the 
223.20 	biennia beginning July 1, 2007, and July 
223.21 	1, 2009, general fund savings that result 
223.22 	from reduced maintenance of effort (MOE) 
223.23 	requirements shall be deposited in the 
223.24 	TANF fund. Notwithstanding any contrary 
223.25 	provision in this article, this rider expires 
223.26 	June 30, 2011.
223.27 	TANF Maintenance of Effort. (a) In order 
223.28 	to meet the basic MOE requirements of the 
223.29 	TANF block grant specified under Code 
223.30 	of Federal Regulations, title 45, section 
223.31 	263.1, the commissioner may only report 
223.32 	nonfederal money expended for allowable 
223.33 	activities listed in the following clauses as 
223.34 	TANF/MOE expenditures:
224.1 	(1) MFIP cash, diversionary work program, 
224.2 	and food assistance benefits under Minnesota 
224.3 	Statutes, chapter 256J;
224.4 	(2) the child care assistance programs 
224.5 	under Minnesota Statutes, sections 119B.03 
224.6 	and 119B.05, and county child care 
224.7 	administrative costs under Minnesota 
224.8 	Statutes, section 119B.15;
224.9 	(3) state and county MFIP administrative 
224.10 	costs under Minnesota Statutes, chapters 
224.11 	256J and 256K;
224.12 	(4) state, county, and tribal MFIP 
224.13 	employment services under Minnesota 
224.14 	Statutes, chapters 256J and 256K;
224.15 	(5) expenditures made on behalf of 
224.16 	noncitizen MFIP recipients who qualify 
224.17 	for the medical assistance without federal 
224.18 	financial participation program under 
224.19 	Minnesota Statutes, section 256B.06, 
224.20 	subdivision 4, paragraphs (d), (e), and (j); 
224.21 	and
224.22 	(6) qualifying working family credit 
224.23 	expenditures under Minnesota Statutes, 
224.24 	section 290.0671.
224.25 	(b) The commissioner shall ensure that 
224.26 	sufficient qualified nonfederal expenditures 
224.27 	are made each year to meet the state's 
224.28 	TANF/MOE requirements. For the activities 
224.29 	listed in paragraph (a), clauses (2) to 
224.30 	(6), the commissioner may only report 
224.31 	expenditures that are excluded from the 
224.32 	definition of assistance under Code of 
224.33 	Federal Regulations, title 45, section 260.31.
225.1 	(c) The commissioner shall ensure that the 
225.2 	MOE used by the commissioner of finance 
225.3 	for the February and November forecasts 
225.4 	required under Minnesota Statutes, section 
225.5 	16A.103, contains expenditures under 
225.6 	paragraph (a), clause (1), equal to at least 25 
225.7 	percent of the total required under Code of 
225.8 	Federal Regulations, title 45, section 263.1.
225.9 	(d) Minnesota Statutes, section 256.011, 
225.10 	subdivision 3, which requires that federal 
225.11 	grants or aids secured or obtained under that 
225.12 	subdivision be used to reduce any direct 
225.13 	appropriations provided by law, does not 
225.14 	apply if the grants or aids are federal TANF 
225.15 	funds.
225.16 	(e) Notwithstanding any contrary provision 
225.17 	in this article, paragraph (a), clauses (1) to 
225.18 	(6), and paragraphs (b) to (d), expire June 
225.19 	30, 2011.
225.20 	Working Family Credit Expenditures as 
225.21 	TANF/MOE. The commissioner may claim 
225.22 	as TANF/MOE up to $6,707,000 per year 
225.23 	for fiscal year 2008 through fiscal year 2011. 
225.24 	Notwithstanding any contrary provision in 
225.25 	this article, this rider expires June 30, 2011.
225.26 	Additional Working Family Credit 
225.27 	Expenditures to be Claimed for 
225.28 	TANF/MOE. In addition to the amounts 
225.29 	provided in this section, the commissioner 
225.30 	may count the following amounts of working 
225.31 	family credit expenditure as TANF/MOE:
225.32 	(1) fiscal year 2008, $4,269,000; and
225.33 	(2) fiscal year 2009, $4,889,000.
226.1 	Notwithstanding any contrary provision in 
226.2 	this article, this rider expires June 30, 2011.
226.3 	TANF Transfer to Federal Child Care 
226.4 	and Development Fund. The following 
226.5 	TANF fund amounts are appropriated to 
226.6 	the commissioner for the purposes of MFIP 
226.7 	transition year child care under MFIP, 
226.8 	Minnesota Statutes, section 119B.05:
226.9 	(1) fiscal year 2008, $3,871,000;
226.10 	(2) fiscal year 2009, $8,454,000;
226.11 	(3) fiscal year 2010, $14,033,000; and
226.12 	(4) fiscal year 2011, $19,673,000.
226.13 	The commissioner shall authorize transfer 
226.14 	of sufficient TANF funds to the federal 
226.15 	Child Care and Development Fund to meet 
226.16 	this appropriation and shall ensure that all 
226.17 	transferred funds are expended according 
226.18 	to the federal Child Care and Development 
226.19 	Fund regulations.
226.20 	Capitation Rate Increase. Of the health care 
226.21 	access fund appropriations to the University 
226.22 	of Minnesota in the higher education 
226.23 	omnibus appropriation bill, $2,157,000 in 
226.24 	fiscal year 2008 and $2,157,000 in fiscal year 
226.25 	2009 are to be used to increase the capitation 
226.26 	payments under Minnesota Statutes, section 
226.27 	256B.69. 
226.28 	Notwithstanding any contrary provision in 
226.29 	this article, this rider expires June 30, 2011.

226.30	Subd. 2.Agency Management
 					
226.31 	The amounts that may be spent from the 
226.32 	appropriation for each purpose are as follows:

226.33	(a) Financial Operations

227.1	Appropriations by Fund
	
227.2	General
	6,471,000
	6,975,000
	
227.3	Health Care Access
	800,000
	807,000
	
227.4	Federal TANF
	122,000
	122,000
	
227.5 	Base Adjustment. The general fund base 
227.6 	is increased by $454,000 in fiscal year 2010 
227.7 	and $454,000 in fiscal year 2011 for financial 
227.8 	operations.

227.9	(b) Legal and Regulation Operations

227.10	Appropriations by Fund
	
227.11	General
	12,807,000
	12,790,000
	
227.12
227.13	State Government 
Special Revenue
	428,000
	442,000
	
227.14	Health Care Access
	902,000
	930,000
	
227.15	Federal TANF
	100,000
	100,000

227.16	(c) Management Operations

227.17	Appropriations by Fund
	
227.18	General
	4,340,000
	4,436,000
	
227.19	Health Care Access
	236,000
	244,000

227.20	(d) Information Technology Operations

227.21	Appropriations by Fund
	
227.22	General
	23,966,000
	23,956,000
	
227.23	Health Care Access
	6,018,000
	5,977,000

227.24	(e) Health Improvement Account

227.25	General
	272,000
	272,000

227.26
227.27	Subd. 3.Revenue and Pass-Through 
Expenditures

227.28	Federal TANF
	56,671,000
	59,216,000

227.29
227.30	Subd. 4.Children and Economic Assistance 
Grants

227.31	(a) MFIP/DWP Grants

227.32	Appropriations by Fund
	
227.33	General
	62,147,000
	63,181,000
	
227.34	Federal TANF
	79,287,000
	86,337,000

228.1	(b) Support Services Grants

228.2	Appropriations by Fund
	
228.3	General
	8,715,000
	8,715,000
	
228.4	Federal TANF
	116,748,000
	118,571,000
	
228.5 	Supported Work. (1) $12,759,000 is 
228.6 	appropriated from the TANF reserve account 
228.7 	to the commissioner for the biennium 
228.8 	beginning July 1, 2007, for supported work 
228.9 	for MFIP participants, to be allocated to 
228.10 	counties and tribes based on the criteria under 
228.11 	clauses (2) and (3). Paid transitional work 
228.12 	experience and other supported employment 
228.13 	under this rider provides a continuum of 
228.14 	employment assistance, including outreach 
228.15 	and recruitment, program orientation 
228.16 	and intake, testing and assessment, job 
228.17 	development and marketing, preworksite 
228.18 	training, supported worksite experience, job 
228.19 	coaching, and postplacement follow-up, in 
228.20 	addition to extensive case management and 
228.21 	referral services. 
228.22 	(2) A county or tribe is eligible to receive an 
228.23 	allocation under this rider if:
228.24 	(i) the county or tribe is not meeting the 
228.25 	federal work participation rate;
228.26 	(ii) the county or tribe has participants who 
228.27 	are required to perform work activities under 
228.28 	Minnesota Statutes, chapter 256J, but are not 
228.29 	meeting hourly work requirements; and
228.30 	(iii) the county or tribe has assessed 
228.31 	participants who have completed six weeks 
228.32 	of job search or are required to perform 
228.33 	work activities and are not meeting the 
228.34 	hourly requirements, and the county or tribe 
228.35 	has determined that the participant would 
229.1 	benefit from working in a supported work 
229.2 	environment.
229.3 	(3) A county or tribe may also be eligible for 
229.4 	funds in order to contract for supplemental 
229.5 	hours of paid work at the participant's child's 
229.6 	place of education, child care location, or the 
229.7 	child's physical or mental health treatment 
229.8 	facility or office. This grant to counties and 
229.9 	tribes is specifically for MFIP participants 
229.10 	who need to work up to five hours more 
229.11 	per week in order to meet the hourly work 
229.12 	requirement, and the participant's employer 
229.13 	cannot or will not offer more hours to the 
229.14 	participant.
229.15 	Work Study. $1,500,000 is appropriated 
229.16 	from the TANF reserve account to the 
229.17 	commissioner to be transferred to the 
229.18 	Minnesota Office of Higher Education 
229.19 	for the biennium beginning July 1, 2007, 
229.20 	for work study grants under Minnesota 
229.21 	Statutes, section 136A.233, specifically 
229.22 	for low-income individuals who receive 
229.23 	assistance under Minnesota Statutes, 
229.24 	chapter 256J, and for grants to opportunities 
229.25 	industrialization centers.
229.26 	Car Loans and Car Repairs. $3,000,000 is 
229.27 	appropriated from the TANF reserve account 
229.28 	to the commissioner for the biennium 
229.29 	beginning July 1, 2007, for programs 
229.30 	that provide car loans and car repairs to 
229.31 	individuals who receive assistance under 
229.32 	Minnesota Statutes, chapter 256J.
229.33 	Integrated Service Projects. $6,000,000 is 
229.34 	appropriated from the TANF reserve account 
229.35 	to the commissioner effective January 1, 
230.1 	2008, to fund the integrated services project 
230.2 	for MFIP families.
230.3 	TANF Prior Appropriation Cancellation.
230.4 	Notwithstanding Laws 2001, First Special 
230.5 	Session chapter 9, article 17, section 
230.6 	2, subdivision 11, paragraph (b), any 
230.7 	unexpended TANF funds appropriated to the 
230.8 	commissioner to contract with the Board of 
230.9 	Trustees of Minnesota State Colleges and 
230.10 	Universities, to provide tuition waivers to 
230.11 	employees of health care and human service 
230.12 	providers that are members of qualifying 
230.13 	consortia operating under Minnesota 
230.14 	Statutes, sections 116L.10 to 116L.15, must 
230.15 	cancel at the end of fiscal year 2007.

230.16	(c) MFIP Child Care Assistance Grants

230.17	Appropriations by Fund
	
230.18	General
	74,236,000
	70,700,000
	
230.19	TANF
	3,709,000
	6,135,000

230.20
230.21	(d) Basic Sliding Fee Child Care Assistance 
Grants

230.22	General
	41,985,000
	46,454,000
	
230.23 	Base Adjustment. The general fund base 
230.24 	is increased by $758,000 in fiscal year 2010 
230.25 	and $712,000 in fiscal year 2011 for basic 
230.26 	sliding fee child care assistance grants.
230.27 	At-Home Infant Care Program. No 
230.28 	funding shall be allocated to or spent on 
230.29 	the at-home infant care program under 
230.30 	Minnesota Statutes, section 119B.035.

230.31	(e) Child Care Development Grants

230.32	General
	1,615,000
	1,615,000
	
230.33 	Increased Child Care Provider 
230.34 	Connections. (1) Of the general 
231.1 	fund appropriation, $200,000 is to the 
231.2 	commissioner for the following purposes: 
231.3 	$50,000 each year is for a grant to Hennepin 
231.4 	County, and $50,000 each year is for a grant 
231.5 	to Ramsey County. The two counties shall 
231.6 	each contract with a nonprofit organization 
231.7 	to work with the contracting county 
231.8 	and county-based licensed family child 
231.9 	care providers to facilitate county-based 
231.10 	information regarding family and children's 
231.11 	resources and to make training and peer 
231.12 	support available to licensed family child 
231.13 	care providers consistent with paragraph (b). 
231.14 	These appropriations are available until June 
231.15 	30, 2009, and shall not become part of base 
231.16 	level funding for the biennium beginning 
231.17 	July 1, 2009. 
231.18 	(2) Programs to improve child care provider 
231.19 	connections to county services shall be 
231.20 	established in Hennepin and Ramsey 
231.21 	Counties to:
231.22 	(i) improve county contact activities 
231.23 	with county licensed family child care 
231.24 	providers that facilitate utilization of county 
231.25 	educational, social service, public health, 
231.26 	and economic assistance services by eligible 
231.27 	families, parents, and children using licensed 
231.28 	family child care; and
231.29 	(ii) support licensed family child care 
231.30 	providers to qualify as quality-rated child 
231.31 	care providers through peer support and 
231.32 	coaching networks. 
231.33 	Hennepin and Ramsey Counties shall 
231.34 	contract with a nonprofit organization under 
231.35 	paragraph (a) that utilizes licensed family 
232.1 	child care providers as contacts for families 
232.2 	using licensed family child care and to 
232.3 	provide peer support to licensed family child 
232.4 	care providers.
232.5 	(iii) Hennepin and Ramsey Counties must 
232.6 	evaluate the effect of increasing contact 
232.7 	with county-based licensed family child 
232.8 	care providers and report their findings to 
232.9 	the appropriate legislative committees by 
232.10 	February 15, 2010.
232.11 	(iv) Notwithstanding any contrary provision 
232.12 	in this article, this rider expires on June 30, 
232.13 	2010.
232.14 	Base Adjustment. The general fund base is 
232.15 	decreased by $100,000 in fiscal year 2010 
232.16 	and by $100,000 in fiscal year 2011 for child 
232.17 	care development grants.

232.18	(f) Child Support Enforcement Grants

232.19	General
	3,705,000
	3,705,000

232.20	(g) Children's Services Grants

232.21	Appropriations by Fund
	
232.22	General
	65,245,000
	80,826,000
	
232.23	Health Care Access
	250,000
	-0-
	
232.24 	Privatized Adoption Grants. Federal 
232.25 	reimbursement for privatized adoption grant 
232.26 	and foster care recruitment grant expenditures 
232.27 	is appropriated to the commissioner for 
232.28 	adoption grants and foster care and adoption 
232.29 	administrative purposes.
232.30 	Adoption Assistance Incentive Grants.
232.31 	Federal funds available during fiscal year 
232.32 	2008 and fiscal year 2009 for the adoption 
232.33 	incentive grants are appropriated to the 
232.34 	commissioner for these purposes.
233.1 	Adoption Assistance and Relative Custody 
233.2 	Assistance. The commissioner may transfer 
233.3 	unencumbered appropriation balances for 
233.4 	adoption assistance and relative custody 
233.5 	assistance between fiscal years and between 
233.6 	programs.
233.7 	Adoption Assistance and Relative 
233.8 	Custody Assistance Subsidy Payment 
233.9 	Increase. Notwithstanding Minnesota 
233.10 	Rules, part 9560.0083, subparts 5 and 6, the 
233.11 	commissioner shall increase the payment 
233.12 	schedules for basic and supplemental 
233.13 	maintenance needs subsidies by 3.95 percent 
233.14 	effective July 1, 2007. The commissioner 
233.15 	may make cost-neutral adjustments between 
233.16 	schedules and between brackets within 
233.17 	schedules to allow for whole-dollar bracket 
233.18 	levels and account for differential cost 
233.19 	increases in caring for children with special 
233.20 	needs. Counties shall implement the relative 
233.21 	custody assistance payment increases on or 
233.22 	before December 31, 2007, and shall make 
233.23 	payment adjustments retroactive to July 1, 
233.24 	2007.
233.25 	Fetal Alcohol Syndrome. Of the general 
233.26 	fund appropriation, $75,000 in fiscal year 
233.27 	2008 and $75,000 in fiscal year 2009 are 
233.28 	to the commissioner to transfer as grants 
233.29 	to three programs that provide services 
233.30 	to reduce fetal alcohol syndrome under 
233.31 	Minnesota Statutes, section 145.9266. The 
233.32 	three program grantees are the University 
233.33 	of Minnesota, the Meeker-McLeod-Sibley 
233.34 	Community, and the American Indian Family 
233.35 	Center. This appropriation shall become part 
233.36 	of the base appropriation.
234.1 	Base Adjustment. The general fund base is 
234.2 	decreased by $1,246,000 in fiscal year 2010 
234.3 	and decreased by $1,243,000 in fiscal year 
234.4 	2011 for children services grants.

234.5	(h) Children and Community Services Grants

234.6	General
	68,785,000
	69,367,000
	
234.7 	Base Adjustment. The general fund base is 
234.8 	increased by $232,000 in fiscal year 2010 and 
234.9 	by $232,000 in fiscal year 2011 for children 
234.10 	and community service grants.

234.11	(i) General Assistance Grants

234.12	General
	37,876,000
	38,253,000
	
234.13 	General Assistance Standard. The 
234.14 	commissioner shall set the monthly standard 
234.15 	of assistance for general assistance units 
234.16 	consisting of an adult recipient who is 
234.17 	childless and unmarried or living apart 
234.18 	from parents or a legal guardian at $203. 
234.19 	The commissioner may reduce this amount 
234.20 	according to Laws 1997, chapter 85, article 
234.21 	3, section 54.
234.22 	Emergency General Assistance. The 
234.23 	amount appropriated for emergency general 
234.24 	assistance funds is limited to no more 
234.25 	than $7,889,812 in fiscal year 2008 and 
234.26 	$7,889,812 in fiscal year 2009. Funds 
234.27 	to counties must be allocated by the 
234.28 	commissioner using the allocation method 
234.29 	specified in Minnesota Statutes, section 
234.30 	256D.06.

234.31	(j) Minnesota Supplemental Aid Grants

234.32	General
	30,505,000
	30,812,000
	
235.1 	Emergency Minnesota Supplemental 
235.2 	Aid Funds. The amount appropriated for 
235.3 	emergency Minnesota supplemental aid 
235.4 	funds is limited to no more than $1,100,000 
235.5 	in fiscal year 2008 and $1,100,000 in fiscal 
235.6 	year 2009. Funds to counties must be 
235.7 	allocated by the commissioner using the 
235.8 	allocation method specified in Minnesota 
235.9 	Statutes, section 256D.46.

235.10	(k) Group Residential Housing Grants

235.11	General
	90,891,000
	98,365,000

235.12
235.13	(l) Other Children and Economic Assistance 
Grants

235.14	Appropriations by Fund
	
235.15	General
	18,383,000
	17,433,000
	
235.16	TANF
	140,000
	140,000
	
235.17 	Grants for Programs Serving Young 
235.18 	Parents. Of the TANF fund appropriation, 
235.19 	$140,000 each year is for a grant to a program 
235.20 	or programs that provide comprehensive 
235.21 	services through a private, nonprofit agency 
235.22 	to young parents in Hennepin County who 
235.23 	have dropped out of school and are receiving 
235.24 	public assistance. The program administrator 
235.25 	shall report annually to the commissioner on 
235.26 	skills development, education, job training, 
235.27 	and job placement outcomes for program 
235.28 	participants.
235.29 	Alcohol and Drug Intervention. Of the 
235.30 	general fund appropriation in fiscal year 
235.31 	2008, $450,000 is to the commissioner for 
235.32 	the purposes of a program in Ramsey County 
235.33 	that provides early intervention efforts 
235.34 	designed to discourage pregnant women 
235.35 	from using alcohol and illegal drugs. The 
236.1 	appropriation shall not become part of base 
236.2 	level funding and is available until spent.

236.3
236.4	Subd. 5.Children and Economic Assistance 
Management

236.5
236.6	(a) Children and Economic Assistance 
Administration

236.7	Appropriations by Fund
	
236.8	General
	9,469,000
	9,742,000
	
236.9	Federal TANF
	1,196,000
	1,196,000
	
236.10 	Base Adjustment. The general fund base is 
236.11 	decreased by $127,000 in fiscal year 2010 
236.12 	and decreased by $215,000 in fiscal year 
236.13 	2011 for children and economic assistance 
236.14 	administration.

236.15
236.16	(b) Children and Economic Assistance 
Operations

236.17	Appropriations by Fund
	
236.18	General
	35,628,000
	36,376,000
	
236.19	Health Care Access
	351,000
	362,000
	
236.20 	Financial Institution Data Match and 
236.21 	Payment of Fees. The commissioner is 
236.22 	authorized to allocate up to $310,000 in 
236.23 	fiscal year 2008 and $310,000 in fiscal 
236.24 	year 2009 from the PRISM special revenue 
236.25 	account to make payments to financial 
236.26 	institutions in exchange for performing 
236.27 	data matches between account information 
236.28 	held by financial institutions and the public 
236.29 	authority's database of child support obligors 
236.30 	as authorized by Minnesota Statutes, section 
236.31 	13B.06, subdivision 7.
236.32 	Base Adjustment.  The general fund base is 
236.33 	decreased by $337,000 in fiscal year 2010 
236.34 	and decreased by $337,000 in fiscal year 
236.35 	2011.

237.1	Subd. 6.Basic Health Care Grants
 					
237.2 	The amounts that may be spent from the 
237.3 	appropriation for each purpose are as follows:

237.4	(a) MinnesotaCare Grants

237.5	Health Care Access
	393,204,000
	477,552,000
	
237.6 	HealthMatch Delay. Of this appropriation, 
237.7 	$2,560,000 the first year and $21,735,000 
237.8 	the second year are for the MinnesotaCare 
237.9 	program costs related to a six-month delay in 
237.10 	implementation of the HealthMatch program.

237.11
237.12	(b) MA Basic Health Care - Families and 
Children

237.13	Appropriations by Fund
	
237.14	General
	742,872,000
	843,946,000
	
237.15	Health Care Access
	1,672,000
	-0-

237.16
237.17	(c) MA Basic Health Care - Elderly and 
Disabled

237.18	General
	1,001,995,000
	1,113,247,000
	
237.19 	Physician-Directed Care Coordination. In 
237.20 	addition to medical assistance reimbursement 
237.21 	under Minnesota Statutes, sections 
237.22 	256B.0625 and 256B.76, clinics participating 
237.23 	in physician-directed care coordination under 
237.24 	Minnesota Statutes, section 256B.0625, shall 
237.25 	also receive a monthly payment per client 
237.26 	when the clinic serves an eligible client. The 
237.27 	payments across the program must average 
237.28 	$50 per month per client.

237.29	(d) General Assistance Medical Care Grants

237.30	General
	239,090,000
	251,664,000

237.31	(e) Other Health Care Grants

237.32	General
	1,421,000
	921,000
	
238.1 	Prenatal Alcohol or Drug Use. Of the 
238.2 	general fund appropriation, $75,000 each 
238.3 	year is to award grants beginning July 1, 
238.4 	2007, to programs that provide services 
238.5 	under Minnesota Statutes, section 254A.171, 
238.6 	in Pine, Kanabec, and Carlton Counties. This 
238.7 	appropriation shall become part of the base 
238.8 	appropriation.
238.9 	Oral Health Care Innovations Grants. (1) 
238.10 	Of the general fund appropriation, $500,000 
238.11 	for the fiscal year beginning July 1, 2007, 
238.12 	is to award competitive oral health care 
238.13 	innovations grants to organizations described 
238.14 	in Minnesota Statutes, section 256B.76, 
238.15 	paragraph (b), clause (4), consistent with the 
238.16 	department's oral health care system model. 
238.17 	In awarding grants, the commissioner shall 
238.18 	give priority to proposals that: 
238.19 	(i) provide oral health care for children ages 
238.20 	birth to 18 years in St. Louis and Beltrami 
238.21 	Counties and one additional underserved 
238.22 	area of the state;
238.23 	(ii) create a single point of contact linking 
238.24 	patients and providers through a 1-800 
238.25 	telephone number or a Web site;
238.26 	(iii) utilize collaborative practice dental 
238.27 	hygienists to provide assessment, triage, and 
238.28 	referral of children in Head Start centers and 
238.29 	schools to private dentists and community 
238.30 	clinics for necessary dental care;
238.31 	(iv) create an open network of dental 
238.32 	providers to serve children enrolled in public 
238.33 	programs; and
238.34 	(v) establish an electronic record-keeping 
238.35 	system to measure changes in oral health 
239.1 	status and access to care and evaluate Head 
239.2 	Start and school program outcomes.
239.3 	(2) This grant shall not become part of base 
239.4 	level funding.
239.5 	Effects of Changes in State Health Policies.
239.6 	Of the general fund appropriation for the 
239.7 	first year, $300,000 is to the commissioner 
239.8 	to provide a grant to a research center 
239.9 	associated with a safety net hospital and 
239.10 	county-affiliated health system to develop 
239.11 	the capabilities necessary for evaluating the 
239.12 	effects of changes in state health policies 
239.13 	on low-income and uninsured individuals, 
239.14 	including the impact on state health care 
239.15 	program costs, health outcomes, cost-shifting 
239.16 	to different units and levels of government, 
239.17 	and utilization patterns, including use of 
239.18 	emergency room care and hospitalization 
239.19 	rates. This is a onetime appropriation.

239.20	Subd. 7.Health Care Management

239.21	(a) Health Care Administration

239.22	Appropriations by Fund
	
239.23	General
	11,340,000
	11,470,000
	
239.24	Health Care Access
	1,989,000
	1,994,000
	
239.25 	Minnesota Senior Health Options 
239.26 	Reimbursement. Federal administrative 
239.27 	reimbursement resulting from the Minnesota 
239.28 	senior health options project is appropriated 
239.29 	to the commissioner for this activity.
239.30 	Utilization Review. Federal administrative 
239.31 	reimbursement resulting from prior 
239.32 	authorization and inpatient admission 
239.33 	certification by a professional review 
239.34 	organization is dedicated to the commissioner 
239.35 	for these purposes. A portion of these funds 
240.1 	must be used for activities to decrease 
240.2 	unnecessary pharmaceutical costs in medical 
240.3 	assistance.
240.4 	Base Adjustment. The health care access 
240.5 	fund base is decreased by $31,000 in fiscal 
240.6 	year 2010 and decreased by $31,000 in fiscal 
240.7 	year 2011 for health care administration.
240.8 	Base Adjustment. The general fund base is 
240.9 	decreased by $128,000 in fiscal year 2010 
240.10 	and decreased by $126,000 in fiscal year 
240.11 	2011 for health care administration.

240.12	(b) Health Care Operations

240.13	Appropriations by Fund
	
240.14	General
	21,423,000
	22,014,000
	
240.15	Health Care Access
	23,423,000
	24,809,000
	
240.16 	Base Adjustment. The health care access 
240.17 	fund base is increased by $1,795,000 in fiscal 
240.18 	year 2010 and $1,480,000 in fiscal year 2011 
240.19 	for health care operations.
240.20 	Outreach Funding. The following 
240.21 	appropriations are to the commissioner for 
240.22 	the Minnesota health care outreach program 
240.23 	under Minnesota Statutes, section 256.962:
240.24 	(1) $1,000,000 each year from the health 
240.25 	care access fund for a statewide outreach 
240.26 	campaign under Minnesota Statutes, section 
240.27 	256.962, subdivision 1;
240.28 	(2) $700,000 each year from the general 
240.29 	fund and $300,000 each year from the health 
240.30 	care access fund for the incentive program 
240.31 	under Minnesota Statutes, section 256.962, 
240.32 	subdivision 5; and 
240.33 	(3) $150,000 each year from the health 
240.34 	care access fund for a grant to a nonprofit 
241.1 	organization to provide a statewide toll-free 
241.2 	number under Minnesota Statutes, section 
241.3 	256.962, subdivision 4.
241.4 	Base Adjustment. The general fund base is 
241.5 	decreased by $36,000 in fiscal year 2010 and 
241.6 	decreased by $36,000 in fiscal year 2011 for 
241.7 	health care operations.

241.8	Subd. 8.Continuing Care Grants
 					
241.9 	The amounts that may be spent from the 
241.10 	appropriation for each purpose are as follows:

241.11	(a) Aging and Adult Services Grant

241.12	General
	14,288,000
	14,712,000
	
241.13 	Reverse Mortgage Incentive Program.
241.14 	Of the general fund appropriation to the 
241.15 	commissioner for the biennium beginning 
241.16 	July 1, 2007, the following amounts are for 
241.17 	the purposes listed:
241.18 	(1) $120,000 the first year and $120,000 the 
241.19 	second year are for costs associated with the 
241.20 	reverse mortgage incentive program; and 
241.21 	(2) $39,000 each year is to be transferred 
241.22 	to the commissioner of the Minnesota 
241.23 	Housing Finance Agency for the purposes of 
241.24 	Minnesota Statutes, section 462A.05.
241.25 	Information and Assistance 
241.26 	Reimbursement. Federal administrative 
241.27 	reimbursement obtained from information 
241.28 	and assistance services provided by the 
241.29 	Senior LinkAge Line to people who are 
241.30 	identified as eligible for medical assistance 
241.31 	is appropriated to the commissioner for this 
241.32 	activity.
242.1 	Base Adjustment. The general fund base 
242.2 	is increased by $169,000 in fiscal year 2010 
242.3 	and increased by $169,000 in fiscal year 
242.4 	2011 for aging and adult services grants.

242.5	(b) Alternative Care Grants

242.6	General
	50,028,000
	52,090,000
	
242.7 	Alternative Care Transfer. Any money 
242.8 	allocated to the alternative care program that 
242.9 	is not spent for the purposes indicated does 
242.10 	not cancel but is transferred to the medical 
242.11 	assistance account.
242.12 	Base Adjustment. The general fund base is 
242.13 	increased by $808,000 in fiscal year 2010 and 
242.14 	$1,032,000 in fiscal year 2011 for alternative 
242.15 	care grants.

242.16
242.17	(c) Medical Assistance Grants - Long-Term 
Care Facilities

242.18	General
	496,601,000
	507,996,000
	
242.19 	Long-Term Care Consultation Funding 
242.20 	Increase. For the rate year beginning 
242.21 	October 1, 2008, the county long-term 
242.22 	care consultation allocations in Minnesota 
242.23 	Statutes, section 256B.0911, subdivision 
242.24 	6, must be increased based on the number 
242.25 	of transitional long-term care consultation 
242.26 	visits projected by the commissioner in 
242.27 	each county. For the rate year beginning 
242.28 	October 1, 2009, final allocations must be 
242.29 	determined based on the average between 
242.30 	the actual number of transitional long-term 
242.31 	care visits that were conducted in the prior 
242.32 	12-month period and the projected number 
242.33 	of consultations that will be provided in 
242.34 	the rate year beginning October 1, 2009. 
242.35 	Notwithstanding any contrary provision in 
243.1 	this article, this paragraph expires June 30, 
243.2 	2010.
243.3 	Nursing Home Moratorium Exceptions.
243.4 	During fiscal year 2008, the commissioner of 
243.5 	health may approve moratorium exception 
243.6 	projects under Minnesota Statutes, section 
243.7 	144A.073, for which the full annualized 
243.8 	state share of medical assistance costs does 
243.9 	not exceed $3,000,000. During fiscal year 
243.10 	2009, the commissioner of health may 
243.11 	approve moratorium exception projects 
243.12 	under Minnesota Statutes, section 144A.073, 
243.13 	for which the full annualized state share of 
243.14 	medical assistance costs does not exceed 
243.15 	$3,000,000 less the amount approved during 
243.16 	the first year. Priority shall be given to 
243.17 	proposals that entail:
243.18 	(1) complete building replacement in 
243.19 	conjunction with reductions in the number of 
243.20 	beds in a county, with greater weight given 
243.21 	to projects in counties with a greater than 
243.22 	average number of beds per 1,000 elderly;
243.23 	(2) technology improvements;
243.24 	(3) improvements in life safety; 
243.25 	(4) construction of nursing facilities that are 
243.26 	part of senior services campuses; and 
243.27 	(5) improvements in the work environment.

243.28
243.29	(d) Medical Assistance Grants - Long-Term 
Care Waivers and Home Care Grants

243.30	General
	961,658,000
	1,082,746,000

243.31	(e) Mental Health Grants

243.32	Appropriations by Fund
	
243.33	General
	59,105,000
	65,617,000
	
244.1	Health Care Access
	750,000
	750,000
	
244.2	Lottery Prize
	1,608,000
	1,608,000
	
244.3 	Adjustment of CADI Allocations. (a) The 
244.4 	commissioner shall increase as needed the 
244.5 	fiscal year 2007 home and community-based 
244.6 	allocations made under Minnesota Statutes, 
244.7 	section 256B.49, subdivision 17, paragraph 
244.8 	(b), to qualifying counties that transferred 
244.9 	persons to the community alternatives for 
244.10 	disabled individuals (CADI) waiver in 
244.11 	accordance with Laws 2006, chapter 282, 
244.12 	article 20, section 35. The increase shall be 
244.13 	based on the amount by which allowable 
244.14 	funding for CADI waiver services exceeds 
244.15 	authorized spending for personal care 
244.16 	assistance services as shown in the Medicaid 
244.17 	management information system as of March 
244.18 	1, 2007.
244.19 	(b) Counties that believe they qualify under 
244.20 	paragraph (a) may apply to the commissioner 
244.21 	and shall provide to the commissioner by 
244.22 	June 10, 2007, all necessary information 
244.23 	regarding the funding amount to which they 
244.24 	believe they are entitled. The commissioner 
244.25 	shall increase the county allocation to 
244.26 	counties that demonstrate they are entitled to 
244.27 	the increase by June 25, 2007.
244.28 	(c) The amounts provided to counties under 
244.29 	this section shall become part of each 
244.30 	county's base level state allocation for CADI 
244.31 	for the biennium beginning July 1, 2007.
244.32 	(d) This rider is effective the day following 
244.33 	final enactment.
244.34 	Base Adjustment. The general fund base is 
244.35 	decreased by $2,858,000 in fiscal year 2010 
245.1 	and by $2,858,000 in fiscal year 2011 for 
245.2 	mental health grants. 
245.3 	Base Adjustment. The lottery prize fund 
245.4 	base is decreased by $300,000 in fiscal year 
245.5 	2010 and decreased by $300,000 in fiscal 
245.6 	year 2011 for mental health grants. 

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

245.8	General
	1,891,000
	2,323,000
	
245.9 	Base Adjustment. The general fund base is 
245.10 	increased by $19,000 in fiscal year 2010 and 
245.11 	increased by $19,000 in fiscal year 2011 for 
245.12 	deaf and hard-of-hearing grants.

245.13	(g) Chemical Dependency Entitlement Grants

245.14	General
	79,678,000
	90,873,000

245.15
245.16	(h) Chemical Dependency Nonentitlement 
Grants

245.17	General
	1,055,000
	1,055,000

245.18	(i) Other Continuing Care Grants

245.19	Appropriations by Fund
	
245.20	General
	16,414,000
	17,315,000
	
245.21	Lottery Prize Fund
	325,000
	225,000
	
245.22 	Quality Assurance System Expansion. Of 
245.23 	the general fund appropriation, $200,000 
245.24 	in fiscal year 2008 and $200,000 in fiscal 
245.25 	year 2009 are to develop a statewide quality 
245.26 	assurance and improvement system under 
245.27 	Minnesota Statutes, section 256B.096, for 
245.28 	persons receiving disability services. Any 
245.29 	unspent portion of the appropriation for 
245.30 	the first year shall not cancel but shall be 
245.31 	available for the second year. These are 
245.32 	onetime appropriations.
246.1 	Department of Employment and Economic 
246.2 	Development Transfer. For fiscal year 2008, 
246.3 	the commissioner of  finance shall transfer 
246.4 	$200,000 from the methamphetamine 
246.5 	abatement loan fund to the commissioner 
246.6 	of human services for methamphetamine 
246.7 	treatment programs.
246.8 	Kinship Navigator Program. Of the 
246.9 	general fund appropriation, $175,000 in 
246.10 	fiscal year 2008 and $175,000 in fiscal year 
246.11 	2009 is to the commissioner for a two-year 
246.12 	demonstration grant, to be transferred to a 
246.13 	nonprofit statewide organization advocating 
246.14 	for, supporting, and providing information 
246.15 	and resources to individuals raising their 
246.16 	grandchildren, other related children, or 
246.17 	children of friends for purposes of providing 
246.18 	support to grandparents or relatives who are 
246.19 	raising kinship children. The demonstration 
246.20 	grant sites must include a central site in the 
246.21 	metropolitan area and another site in the 
246.22 	Bemidji region. The support must provide a 
246.23 	one-stop services program. The services that 
246.24 	may be provided include, but are not limited 
246.25 	to, legal services, education, information, 
246.26 	family activities, support groups, mental 
246.27 	health access, advocacy, mentors, and 
246.28 	information related to foster care licensing. 
246.29 	The funds may also be used for a media 
246.30 	campaign to inform kinship families about 
246.31 	available information and services, support 
246.32 	sites, and other program development. 
246.33 	For the biennium beginning July 1, 2009, 
246.34 	base level funding for these grants shall be 
246.35 	$160,000 each year.
247.1 	Compulsive Gambling. (1) $225,000 in 
247.2 	fiscal year 2007 and $225,000 in fiscal year 
247.3 	2008 are appropriated from the lottery prize 
247.4 	fund to the commissioner for a grant to the 
247.5 	state affiliate recognized by the National 
247.6 	Council on Problem Gambling. The affiliate 
247.7 	must provide services to increase public 
247.8 	awareness of problem gambling, education, 
247.9 	and training for individuals and organizations 
247.10 	providing effective treatment services to 
247.11 	problem gamblers and their families, and 
247.12 	research relating to problem gambling. 
247.13 	These services must be complimentary to 
247.14 	and not duplicative of the services provided 
247.15 	through the problem gambling program 
247.16 	administered by the commissioner. This 
247.17 	grant does not prevent the commissioner 
247.18 	from regular monitoring and oversight of the 
247.19 	grant or the ability to reallocate the funds to 
247.20 	other services within the problem gambling 
247.21 	program for nonperformance of duties by 
247.22 	the grantee. Of this appropriation, $100,000 
247.23 	in fiscal year 2007 and $100,000 in fiscal 
247.24 	year 2008 are contingent on the contribution 
247.25 	of nonstate matching funds. Matching 
247.26 	funds may be either cash or qualifying 
247.27 	in-kind contributions. The commissioner of 
247.28 	finance may disburse the state portion of the 
247.29 	matching funds in increments of $25,000 
247.30 	upon receipt of a commitment for an equal 
247.31 	amount of matching nonstate funds. These 
247.32 	are onetime appropriations.
247.33 	(2) $100,000 in fiscal year 2007 is 
247.34 	appropriated from the lottery prize fund to 
247.35 	the commissioner for a grant or grants to be 
247.36 	awarded competitively to develop programs 
248.1 	and services for problem gambling treatment, 
248.2 	prevention, and education in immigrant 
248.3 	communities. This appropriation is available 
248.4 	until June 30, 2009, at which time the 
248.5 	project must be completed and final products 
248.6 	delivered, unless an earlier completion date 
248.7 	is specified in the work program.
248.8 	(3) $300,000 in fiscal year 2008 and $300,000 
248.9 	in fiscal year 2009 are appropriated from the 
248.10 	lottery prize fund to the commissioner for 
248.11 	purposes of compulsive gambling education, 
248.12 	assessment, and treatment, under Minnesota 
248.13 	Statutes, section 245.98.
248.14 	(4) $100,000 each year is appropriated from 
248.15 	the lottery prize fund to the commissioner to 
248.16 	continue the study currently being done on 
248.17 	compulsive gambling treatment effectiveness 
248.18 	and long-term effects of gambling.
248.19 	Base Adjustment. The general fund base is 
248.20 	decreased by $237,000 in fiscal year 2010 
248.21 	and decreased by $192,000 in fiscal year 
248.22 	2011 for other continuing care grants.
248.23 	Base Adjustment. The lottery prize fund 
248.24 	base is decreased by $125,000 in fiscal year 
248.25 	2010 and by $125,000 in fiscal year 2011 for 
248.26 	other continuing care grants.

248.27	Subd. 9.Continuing Care Management

248.28	Appropriations by Fund
	
248.29	General
	18,642,000
	18,998,000
	
248.30
248.31	State Government 
Special Revenue
	122,000
	125,000
	
248.32	Health Care Access
	293,000
	-0-
	
248.33	Lottery Prize
	253,000
	258,000
	
248.34 	Home Health Reimbursement Study. (1) 
248.35 	Of the general fund appropriation, $100,000 
249.1 	in fiscal year 2008 is to the commissioner to 
249.2 	contract with a Minnesota-based, nonprofit 
249.3 	quality improvement organization that 
249.4 	collaborates with providers and consumers 
249.5 	in health improvement activities, for the 
249.6 	purpose of conducting an independent 
249.7 	analysis of the reimbursement methodologies 
249.8 	for home health services provided to 
249.9 	enrollees in the Minnesota senior health 
249.10 	options and Minnesota disability health 
249.11 	options programs.
249.12 	(2) The analysis of reimbursement 
249.13 	methodologies shall include, at a minimum, 
249.14 	a review of:
249.15 	(i) any limitations on flexibility in services or 
249.16 	technology for the home health provider;
249.17 	(ii) the Medicare program reimbursement 
249.18 	methodologies, including possible 
249.19 	alternatives, and Medicare benefits;
249.20 	(iii) potential access issues raised by current 
249.21 	reimbursement methodologies; and 
249.22 	(iv) incentives, including episodic care 
249.23 	reimbursement methodologies, to promote 
249.24 	best practices and achieve identified clinical 
249.25 	outcomes.
249.26 	(3) The analysis and any supporting 
249.27 	recommendations shall be presented to the 
249.28 	commissioner by December 1, 2007, and 
249.29 	to the chairs of the appropriate legislative 
249.30 	committees by December 15, 2007. In no 
249.31 	event shall the study disclose any specific 
249.32 	reimbursement amount or methodologies 
249.33 	attributable to an individual health carrier.
250.1 	(4) In conducting its analysis, the 
250.2 	organization described in paragraph (a) 
250.3 	shall consult with the commissioner, the 
250.4 	Minnesota Home Care Association, managed 
250.5 	care organizations, and other interested 
250.6 	home health entities and advocates, and 
250.7 	shall convene the parties to discuss pertinent 
250.8 	issues.
250.9 	Leech Lake Youth Treatment Center 
250.10 	Proposal. (1) Of the general fund 
250.11 	appropriation, $75,000 in fiscal year 2008 
250.12 	and $75,000 in fiscal year 2009 are to the 
250.13 	commissioner to provide a planning grant to 
250.14 	address the unmet need for local, effective, 
250.15 	culturally relevant alcohol and drug treatment 
250.16 	for American Indian youth and develop 
250.17 	a plan for a family-based youth treatment 
250.18 	center in the Leech Lake area. The planning 
250.19 	grant must be provided to a volunteer board 
250.20 	consisting of at least four members appointed 
250.21 	by the commissioner, to include at least the 
250.22 	following:
250.23 	(i) two members of the Leech Lake Tribal 
250.24 	Council or their designees;
250.25 	(ii) one member appointed by the Cass 
250.26 	County Social Services administrator; and
250.27 	(iii) one member appointed by the Cass 
250.28 	Lake-Bena Public School superintendent.
250.29 	(2) The plan must include:
250.30 	(i) conducting an interest, feasibility, and 
250.31 	suitability of location study;
250.32 	(ii) defining the scope of programs and 
250.33 	services to be offered;
251.1 	(iii) defining site use limitations and 
251.2 	restrictions, including physical and capacity;
251.3 	(iv) defining facilities required for programs 
251.4 	and services offered;
251.5 	(v) identifying partners, partnership roles, 
251.6 	and partner resources;
251.7 	(vi) developing proposed operating and 
251.8 	maintenance budgets;
251.9 	(vii) identifying funding sources;
251.10 	(viii) developing a long-term funding plan; 
251.11 	and
251.12 	(ix) developing a formal steering committee, 
251.13 	structure, and bylaws.
251.14 	(3) The plan is due to the legislative 
251.15 	committees having jurisdiction over 
251.16 	chemical health issues no later than 
251.17 	September 2008 in order to provide the 12 
251.18 	months necessary to complete the plan.
251.19 	Base Adjustment. The general fund base is 
251.20 	decreased by $235,000 in fiscal year 2010 
251.21 	and by $235,000 in fiscal year 2011 for 
251.22 	continuing care management.
251.23 	Base Adjustment. The base of the lottery 
251.24 	prize fund is decreased by $100,000 in fiscal 
251.25 	year 2010 and by $100,000 in fiscal year 
251.26 	2011.
251.27 	Establishing Certification Method. Of 
251.28 	the general fund appropriation, $100,000 in 
251.29 	fiscal year 2008 is to establish a method to 
251.30 	collect documentation from local agencies 
251.31 	certifying that providers contracted to 
251.32 	provide home and community-based waiver 
251.33 	services meet basic health, safety, and 
251.34 	protection of rights standards for the home 
252.1 	and community-based waiver for persons 
252.2 	with traumatic brain injury, the community 
252.3 	alternatives for disabled individuals waiver, 
252.4 	and the community alternative care waiver. 
252.5 	This is a onetime appropriation.

252.6	Subd. 10.State-Operated Services
 					
252.7 	Transfer Authority Related to 
252.8 	State-Operated Services. Funds 
252.9 	appropriated to finance state-operated 
252.10 	services programs and administrative 
252.11 	services may be transferred between fiscal 
252.12 	years of the biennium with the approval of 
252.13 	the commissioner of finance.

252.14	(a) Mental Health Services

252.15	General
	115,970,000
	119,795,000
	
252.16 	Appropriation Limitation. No part of 
252.17 	the appropriation in this article to the 
252.18 	commissioner for mental health treatment 
252.19 	services at the regional treatment centers 
252.20 	shall be used for the Minnesota sex offender 
252.21 	program.
252.22 	Internet-Based Resources. The 
252.23 	Internet-based resource developed as part 
252.24 	of the evidence-based practice for the 
252.25 	treatment of methamphetamine abuse at the 
252.26 	state-operated services chemical dependency 
252.27 	program in Willmar established by Laws 
252.28 	2005, First Special Session chapter 4, 
252.29 	article 9, section 2, subdivision 10, shall be 
252.30 	transferred from the commissioner of human 
252.31 	services to the commissioner of health. The 
252.32 	commissioner of health shall maintain the 
252.33 	resource.

252.34	(b) Minnesota Sex Offender Services

253.1	General
	67,719,000
	62,787,000

253.2
253.3	(c) Minnesota Security Hospital and METO 
Services

253.4	General
	82,656,000
	84,836,000
	
253.5 	Minnesota Security Hospital. For the 
253.6 	purposes of enhancing the safety of 
253.7 	the public, improving supervision, and 
253.8 	enhancing community-based mental health 
253.9 	treatment, state-operated services may 
253.10 	establish additional community capacity 
253.11 	for providing treatment and supervision 
253.12 	of clients who have been ordered into 
253.13 	less restrictive alternative care from the 
253.14 	state-operated services transitional services 
253.15 	program consistent with Minnesota Statutes, 
253.16 	section 246.014.

253.17	Sec. 4. COMMISSIONER OF HEALTH

253.18	Subdivision 1.Total Appropriation
 	$
	153,739,000
	$
	147,968,000

253.19	Appropriations by Fund
	
253.20		2008
	2009
	
253.21	General
	77,720,000
	72,943,000
	
253.22
253.23	State Government 
Special Revenue
	43,927,000
	43,416,000
	
253.24	Health Care Access
	26,092,000
	25,609,000
	
253.25	Federal TANF
	6,000,000
	6,000,000
	
253.26 	Pay for Performance. (1) For the biennium 
253.27 	beginning July 1, 2009, $91,000 each year 
253.28 	shall be deposited in a health improvement 
253.29 	account by the commissioner of finance 
253.30 	and shall be available to the commissioner, 
253.31 	provided that by January 1, 2011, the state 
253.32 	has met the health disparity elimination goals 
253.33 	established in Minnesota Statutes, section 
253.34 	145.928, subdivision 1.
254.1 	(2) Money remaining in the health 
254.2 	improvement account on June 30, 2011, shall 
254.3 	not cancel but shall remain in the account 
254.4 	until appropriated by law.
254.5 	(3) Notwithstanding any contrary provision 
254.6 	of this article, this rider shall not expire.
254.7 	Transfer from the State Government 
254.8 	Special Revenue Fund. During the 
254.9 	fiscal year beginning July 1, 2007, the 
254.10 	commissioner of finance shall transfer 
254.11 	$7,200,000 from the state government 
254.12 	special revenue fund to the general fund. 

254.13
254.14	Subd. 2.Community and Family Health 
Promotion

254.15	Appropriations by Fund
	
254.16	General
	44,760,000
	44,928,000
	
254.17
254.18	State Government 
Special Revenue
	870,000
	876,000
	
254.19	Health Care Access
	3,553,000
	3,591,000
	
254.20	Federal TANF
	3,579,000
	3,579,000
	
254.21 	TANF Appropriations.  The TANF 
254.22 	appropriation each year is to the 
254.23 	commissioner for home visiting and 
254.24 	nutritional services listed under Minnesota 
254.25 	Statutes, section 145.882, subdivision 7, 
254.26 	clauses (6) and (7). Funding shall be 
254.27 	distributed to community health boards based 
254.28 	on Minnesota Statutes, section 145A.131, 
254.29 	subdivision 1.
254.30 	TANF Carryforward. Any unexpended 
254.31 	balance of the TANF appropriation in the 
254.32 	first year of the biennium does not cancel but 
254.33 	is available for the second year.
254.34 	Federally Qualified Health Centers. Of 
254.35 	the health care access fund appropriation, 
254.36 	$5,500,000 each year is to provide subsidies 
255.1 	to federally qualified health centers, under 
255.2 	Minnesota Statutes, section 145.9269. 
255.3 	This appropriation shall become part of 
255.4 	base level funding. Effective July 1, 2011, 
255.5 	this appropriation shall be paid out of the 
255.6 	general fund. Notwithstanding any contrary 
255.7 	provision in this article, this rider shall not 
255.8 	expire.
255.9 	HIV Information and Referral.  Of the 
255.10 	general fund appropriation, $160,000 in 
255.11 	fiscal year 2007 and $160,000 in fiscal year 
255.12 	2008 are to the commissioner to fund a 
255.13 	community-based nonprofit organization 
255.14 	with demonstrated capacity to operate a 
255.15 	statewide HIV information and referral 
255.16 	service using telephone, Internet, and other 
255.17 	appropriate technologies. This appropriation 
255.18 	shall become part of base level funding for 
255.19 	the biennium beginning July 1, 2009.
255.20 	Family Planning Grants. Of the general 
255.21 	fund appropriation, $1,156,000 in fiscal year 
255.22 	2007 and $1,156,000 in fiscal year 2008 are 
255.23 	to the commissioner for family planning 
255.24 	grants under Minnesota Statutes, section 
255.25 	145.925.
255.26 	Community-Based Health Care 
255.27 	Demonstration Project. Of the general fund 
255.28 	appropriation, $210,000 in fiscal year 2007 
255.29 	and $210,000 in fiscal year 2008 are to the 
255.30 	commissioner for the demonstration project 
255.31 	grant described in Minnesota Statutes, 
255.32 	section 62Q.80, subdivision 1a. This 
255.33 	appropriation shall remain part of base level 
255.34 	funding until June 30, 2012. Notwithstanding 
256.1 	any contrary provision in this article, this 
256.2 	rider expires July 1, 2012.
256.3 	Birth Defects. Of the general fund 
256.4 	appropriation, $375,000 each year is to 
256.5 	the commissioner to maintain the birth 
256.6 	defects information system established under 
256.7 	Minnesota Statutes, section 144.2215.
256.8 	Family Support and Assistance. Of the 
256.9 	general fund appropriation, $100,000 each 
256.10 	year is to the commissioner to provide 
256.11 	family support and assistance to families 
256.12 	with children who are deaf or have a hearing 
256.13 	loss. The family support provided must 
256.14 	include direct parent-to-parent assistance and 
256.15 	information on communication, educational, 
256.16 	and medical options. The commissioner 
256.17 	may contract with a nonprofit organization 
256.18 	that has the ability to provide these services 
256.19 	throughout the state. 
256.20 	Hearing Aid and Instrument Loan Bank.
256.21 	Of the general fund appropriation, $70,000 
256.22 	each year is to the commissioner for the 
256.23 	purpose of providing a grant to cover 
256.24 	administrative costs for a statewide hearing 
256.25 	aid and instrument loan bank to families with 
256.26 	children newly diagnosed with hearing loss 
256.27 	from birth to the age of ten.
256.28 	Methamphetamine Abuse Grants. Of the 
256.29 	general fund appropriation, $375,000 each 
256.30 	year is for grants to existing programs that 
256.31 	treat methamphetamine abuse, and the abuse 
256.32 	of other substances in Carlton, Faribault, 
256.33 	Martin, Olmsted, and Anoka Counties, that 
256.34 	received grant funds under Laws 2005, 
256.35 	chapter 136, article 1, section 9, subdivision 
257.1 	6. The commissioner shall administer the 
257.2 	grants to programs that the commissioner 
257.3 	deems successful, and may discontinue 
257.4 	grants to programs after an evaluation of 
257.5 	the program and a determination by the 
257.6 	commissioner that the program should no 
257.7 	longer receive funds. This appropriation 
257.8 	shall not become part of base level funding.
257.9 	Loan Forgiveness. $400,000 in fiscal 
257.10 	year 2010 and $400,000 in fiscal year 
257.11 	2011 from the state government special 
257.12 	revenue fund are to the commissioner 
257.13 	for the loan forgiveness program under 
257.14 	Minnesota Statutes, section 144.1501. This 
257.15 	appropriation shall not become part of base 
257.16 	level funding for the biennium beginning 
257.17 	July 1, 2011. Notwithstanding any contrary 
257.18 	provision in this article, this rider expires 
257.19 	December 31, 2011.
257.20 	Fetal Alcohol Spectrum Disorder. (1) 
257.21 	On July 1 of each fiscal year, the portion 
257.22 	of the general fund appropriation to the 
257.23 	commissioner of health for fetal alcohol 
257.24 	spectrum disorder administration and 
257.25 	grants shall be transferred to a statewide 
257.26 	organization that focuses solely on 
257.27 	prevention of and intervention with fetal 
257.28 	alcohol spectrum disorder as follows:
257.29 	(i) on July 1, 2007, $2,090,000; and
257.30 	(ii) on July 2, 2008, and annually thereafter, 
257.31 	$2,090,000.
257.32 	(2) The money shall be used for prevention 
257.33 	and intervention services and programs, 
257.34 	including, but not limited to, community 
257.35 	grants, professional education, public 
258.1 	awareness, and diagnosis. The organization 
258.2 	may retain $60,000 of the transferred money 
258.3 	for administrative costs. The organization 
258.4 	shall report to the commissioner annually 
258.5 	by January 15 on the services and programs 
258.6 	funded by the appropriation.
258.7 	(3) Notwithstanding any contrary provision 
258.8 	in this article, this rider shall not expire.

258.9	Subd. 3.Policy, Quality, and Compliance

258.10	Appropriations by Fund
	
258.11	General
	8,983,000
	3,703,000
	
258.12
258.13	State Government 
Special Revenue
	13,052,000
	13,210,000
	
258.14	Health Care Access
	22,539,000
	22,018,000
	
258.15 	Health Care Access Survey. Of the 
258.16 	health care access fund appropriation, 
258.17 	$600,000 in fiscal year 2008 is appropriated 
258.18 	to the commissioner to conduct a health 
258.19 	insurance survey of Minnesota households, 
258.20 	in partnership with the State Health Access 
258.21 	Data Assistance Center at the University 
258.22 	of Minnesota. The commissioner shall 
258.23 	contract with the State Health Access Data 
258.24 	Assistance Center to conduct a survey that 
258.25 	provides information on the characteristics 
258.26 	of the uninsured in Minnesota and the 
258.27 	reasons for changing patterns of insurance 
258.28 	coverage and access to health care services. 
258.29 	This appropriation shall become part of the 
258.30 	agency's base budget for even-numbered 
258.31 	fiscal years.
258.32 	MERC Federal Compliance. Of the 
258.33 	general fund appropriation for the second 
258.34 	year, $5,000,000 is to the commissioner 
258.35 	to distribute to the Mayo Clinic for the 
258.36 	purpose of providing transition funding while 
259.1 	federal compliance changes are made to the 
259.2 	medical education and research cost funding 
259.3 	distribution formula in Minnesota Statutes, 
259.4 	section 62J.692.
259.5 	Health Information Technology. Of 
259.6 	the health care access fund appropriation, 
259.7 	$6,750,000 each year is to implement 
259.8 	Minnesota Statutes, section 144.3345. Up 
259.9 	to $350,000 each fiscal year is available for 
259.10 	grant administration and health information 
259.11 	technology technical assistance and 
259.12 	$6,400,000 each year is to be transferred 
259.13 	to the commissioner of finance to establish 
259.14 	and implement a revolving account under 
259.15 	Minnesota Statutes, section 62J.496. This 
259.16 	appropriation shall not be included in the 
259.17 	agency's base budget for the fiscal year 
259.18 	beginning July 1, 2009.

259.19	Subd. 4.Health Protection

259.20	Appropriations by Fund
	
259.21	General
	10,480,000
	10,768,000
	
259.22
259.23	State Government 
Special Revenue
	28,005,000
	29,330,000
	
259.24 	Water Treatment. Of the general fund 
259.25 	appropriation, $40,000 in fiscal year 
259.26 	2008 is to the commissioner to augment 
259.27 	any appropriation from the remediation 
259.28 	fund to conduct an evaluation of point 
259.29 	of use water treatment units at removing 
259.30 	perfluorooctanoic acid, perfluorooctane 
259.31 	sulfonate, and perfluorobutanoic acid from 
259.32 	known concentrations of these compounds 
259.33 	in drinking water. The evaluation shall be 
259.34 	completed by December 31, 2007, and the 
259.35 	commissioner may contract for services to 
260.1 	complete the evaluation. This is a onetime 
260.2 	appropriation.
260.3 	Pandemic Influenza Preparedness. Of the 
260.4 	general fund appropriation, $500,000 in fiscal 
260.5 	year 2008 and $500,000 in fiscal year 2009 
260.6 	are for grants to local public health and tribal 
260.7 	governments for planning, exercises, and 
260.8 	preparedness for pandemic influenza, and 
260.9 	$115,000 in fiscal year 2008 and $115,000 in 
260.10 	fiscal year 2009 are for department activities 
260.11 	of epidemiology, laboratory services, 
260.12 	exercises, and planning. This appropriation 
260.13 	shall not become part of base level funding 
260.14 	for the biennium beginning July 1, 2009.

260.15	Subd. 5.Minority and Multicultural Health

260.16	Appropriations by Fund
	
260.17	General
	4,998,000
	5,015,000
	
260.18	Federal TANF
	2,421,000
	2,421,000
	
260.19 	TANF Appropriations.  The TANF 
260.20 	appropriation each year is to the 
260.21 	commissioner for home visiting and 
260.22 	nutritional services listed under Minnesota 
260.23 	Statutes, section 145.882, subdivision 7, 
260.24 	clauses (6) and (7). Funding shall be 
260.25 	distributed to tribal governments based 
260.26 	on Minnesota Statutes, section 145A.14, 
260.27 	subdivision 2a, paragraph (b).
260.28 	TANF Carryforward. Any unexpended 
260.29 	balance of the TANF appropriation in the 
260.30 	first year of the biennium does not cancel but 
260.31 	is available for the second year.

260.32	Subd. 6.Administrative Support Services

261.1	Appropriations by Fund
	
261.2	General
	8,499,000
	8,529,000
	
261.3
261.4	State Government 
Special Revenue
	2,000,000
	-0-
	
261.5 	Disease Surveillance. Of the state 
261.6 	government special revenue fund 
261.7 	appropriation, $2,000,000 the first year is for 
261.8 	redesigning and implementing coordinated 
261.9 	and modern disease surveillance systems 
261.10 	for the department. This is a onetime 
261.11 	appropriation.
261.12 	Base Adjustment. The general fund base 
261.13 	is reduced by $91,000 in fiscal year 2010 
261.14 	and by $91,000 in fiscal year 2011 for 
261.15 	administrative support services.

261.16
261.17	Sec. 5. VETERANS NURSING HOMES 
BOARD
 	$
	40,074,000
	$
	42,244,000
	
261.18 	Veterans Homes Special Revenue Account.
261.19 	The general fund appropriations made to 
261.20 	the board may be transferred to a veterans 
261.21 	homes special revenue account in the 
261.22 	special revenue fund in the same manner as 
261.23 	other receipts are deposited, according to 
261.24 	Minnesota Statutes, section 198.34, and are 
261.25 	appropriated to the board for the operation of 
261.26 	board facilities and programs.
261.27 	Pay for Performance. (1) Of this 
261.28 	appropriation, $50,000 in fiscal year 2008 
261.29 	shall be deposited in a health improvement 
261.30 	account by the commissioner of finance 
261.31 	and shall be available to the board only 
261.32 	provided that during the period October 
261.33 	1, 2007, to September 30, 2008, the 
261.34 	Department of Health has not issued any 
261.35 	penalty assessments under the provisions 
262.1 	of Minnesota Statutes, section 144.653 or 
262.2 	144A.10, or any correction orders under the 
262.3 	provisions of Minnesota Statutes, section 
262.4 	144.653 or 144A.10, that the Department 
262.5 	of Health deems equivalent to findings of 
262.6 	either immediate jeopardy or substandard 
262.7 	quality of care, as defined in Code of Federal 
262.8 	Regulations, title 42, section 488.301.
262.9 	(2) Money remaining in the health 
262.10 	improvement account on June 30, 2009, shall 
262.11 	not cancel but shall remain in the account 
262.12 	until appropriated by law.
262.13 	(3) Notwithstanding any contrary provision 
262.14 	of this article, this rider shall not expire.

262.15	Sec. 6. HEALTH-RELATED BOARDS

262.16	Subdivision 1.Total Appropriation
 	$
	14,572,000
	$
	14,462,000
	
262.17 	The amounts that may be spent for each 
262.18 	purpose are specified in the following 
262.19 	subdivisions.

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

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

262.22
262.23	Subd. 4.Board of Dietetic and Nutrition 
Practice
 		103,000
		119,000
	
262.24 	Base Adjustment. Of this appropriation 
262.25 	in fiscal year 2009, $14,000 is a onetime 
262.26 	appropriation.

262.27
262.28	Subd. 5.Board of Marriage and Family 
Therapy
 		134,000
		154,000
	
262.29 	Base Adjustment. Of this appropriation 
262.30 	in fiscal year 2009, $17,000 is a onetime 
262.31 	appropriation.

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

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

263.1
263.2	Subd. 8.Board of Nursing Home 
Administrators
 		633,000
		647,000
	
263.3 	Administrative Services Unit. Of this 
263.4 	appropriation, $430,000 in fiscal year 
263.5 	2008 and $439,000 in fiscal year 2009 are 
263.6 	for the administrative services unit. The 
263.7 	administrative services unit may receive 
263.8 	and expend reimbursements for services 
263.9 	performed by other agencies.

263.10	Subd. 9.Board of Optometry
 		98,000
		114,000
	
263.11 	Base Adjustment. Of this appropriation 
263.12 	in fiscal year 2009, $13,000 is a onetime 
263.13 	appropriation.

263.14	Subd. 10.Board of Pharmacy
 		1,375,000
		1,442,000
	
263.15 	Base Adjustment. Of this appropriation 
263.16 	in fiscal year 2009, $29,000 is a onetime 
263.17 	appropriation.

263.18	Subd. 11.Board of Physical Therapy
 		224,000
		230,000

263.19	Subd. 12.Board of Podiatry
 		54,000
		63,000
	
263.20 	Base Adjustment. Of this appropriation 
263.21 	in fiscal year 2009, $7,000 is a onetime 
263.22 	appropriation.

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

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

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

263.26
263.27	Subd. 16.Board of Behavioral Health and 
Therapy
 		394,000
		394,000

263.28
263.29	Sec. 7. EMERGENCY MEDICAL SERVICES 
BOARD
 	$
	3,521,000
	$
	3,167,000

263.30	Appropriations by Fund
	
263.31		2008
	2009
	
264.1	General
	2,834,000
	2,463,000
	
264.2
264.3	State Government 
Special Revenue
	687,000
	704,000
	
264.4 	Longevity Award and Incentive Program.
264.5 	(a) Of the general fund appropriation, 
264.6 	$700,000 in fiscal year 2008 and $700,000 
264.7 	in fiscal year 2009 are to the board for the 
264.8 	ambulance service personnel longevity award 
264.9 	and incentive program, under Minnesota 
264.10 	Statutes, section 144E.40.
264.11 	(b) In the fiscal year beginning July 1, 
264.12 	2007, $400,000 shall be transferred from 
264.13 	the ambulance service personnel longevity 
264.14 	award and incentive trust to the general fund.
264.15 	Regional Grants. Of the general fund 
264.16 	appropriation, $400,000 in fiscal year 2008 is 
264.17 	to the board for regional emergency medical 
264.18 	services programs, to be distributed equally 
264.19 	to the eight emergency medical service 
264.20 	regions. This amount shall not become part 
264.21 	of base level funding. Notwithstanding 
264.22 	Minnesota Statutes, section 144E.50, 100 
264.23 	percent of the appropriation shall be passed 
264.24 	on to the emergency medical service regions.
264.25 	Health Professional Services Program.
264.26 	$687,000 in fiscal year 2008 and $704,000 in 
264.27 	fiscal year 2009 from the state government 
264.28 	special revenue fund are for the health 
264.29 	professional services program.

264.30	Sec. 8. COUNCIL ON DISABILITY
 					
264.31	General
			$
	812,000
	$
	524,000
	
264.32 	Assistive Technology. Of the general 
264.33 	fund appropriation to the Council on 
264.34 	Disability in fiscal year 2008, $100,000 
265.1 	is to provide financial support to the 
265.2 	Minnesota Regional Assistive Technology 
265.3 	Collaborative, and $200,000 is for a transfer 
265.4 	to the commissioner of administration 
265.5 	for the purposes of completing the state's 
265.6 	remaining share of the local match required 
265.7 	to access the federal Technology Related 
265.8 	Assistance Act for Persons with Disabilities, 
265.9 	Title III, Alternative Financing Project 2003 
265.10 	grant award, which provides microloans 
265.11 	to individuals for the purpose of acquiring 
265.12 	assistive technology devices and services.

265.13
265.14
265.15	Sec. 9. OMBUDSMAN FOR MENTAL 
HEALTH AND DEVELOPMENTAL 
DISABILITIES
 					
265.16	General
			$
	1,584,000
	$
	1,655,000

265.17	Sec. 10. OMBUDSMAN FOR FAMILIES
 					
265.18	General
			$
	255,000
	$
	265,000

265.19 	Sec. 11. Minnesota Statutes 2006, section 16A.724, is amended by adding a 
265.20 	subdivision to read:
265.21 		Subd. 3.MinnesotaCare federal receipts. Receipts received as a result of federal 
265.22 	participation pertaining to administrative costs of the Minnesota health care reform waiver 
265.23 	shall be deposited as nondedicated revenue in the health care access fund. Receipts 
265.24 	received as a result of federal participation pertaining to grants shall be deposited in the 
265.25 	federal fund and shall offset health care access funds for payments to providers.

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

265.31 	Sec. 13. Minnesota Statutes 2006, section 69.021, subdivision 11, is amended to read:
266.1 		Subd. 11.Excess police state-aid holding account. (a) The excess police state-aid 
266.2 	holding account is established in the general fund. The excess police state-aid holding 
266.3 	account must be administered by the commissioner.
266.4 	(b) Excess police state aid determined according to subdivision 10, must be 
266.5 	deposited in the excess police state-aid holding account.
266.6 	(c) From the balance in the excess police state-aid holding account, $900,000 
266.7 	is appropriated to and must be transferredcanceled annually to the ambulance service 
266.8 	personnel longevity award and incentive suspense account established by section 144E.42, 
266.9 	subdivision 2 to the general fund.
266.10 	(d) If a police officer stress reduction program is created by law and money is 
266.11 	appropriated for that program, an amount equal to that appropriation must be transferred 
266.12 	to the administrator of that program from the balance in the excess police state-aid holding 
266.13 	account.
266.14 	(e) On October 1 of each year, one-half of the balance of the excess police 
266.15 	state-aid holding account remaining after the deductions under paragraphs (c) and (d) is 
266.16 	appropriated for additional amortization aid under section 423A.02, subdivision 1b.
266.17 	(f) Annually, the remaining balance in the excess police state-aid holding account, 
266.18 	after the deductions under paragraphs (c), (d), and (e), cancels to the general fund.

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

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

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

267.8 	Sec. 17. Minnesota Statutes 2006, section 256J.02, is amended by adding a subdivision 
267.9 	to read:
267.10 		Subd. 6.TANF funds appropriated to other entities. Any expenditures from 
267.11 	the TANF block grant shall be expended in accordance with the requirements and 
267.12 	limitations of part A of Title IV of the Social Security Act, as amended, and any other 
267.13 	applicable federal requirement or limitation. Prior to any expenditure of these funds, the 
267.14 	commissioner shall ensure that funds are expended in compliance with the requirements 
267.15 	and limitations of federal law and that any reporting requirements of federal law are 
267.16 	met. It shall be the responsibility of any entity to which these funds are appropriated to 
267.17 	implement a memorandum of understanding with the commissioner that provides the 
267.18 	necessary assurance of compliance prior to any expenditure of funds. The commissioner 
267.19 	shall receipt TANF funds appropriated to other state agencies and coordinate all related 
267.20 	interagency accounting transactions necessary to implement these appropriations. 
267.21 	Unexpended TANF funds appropriated to any state, local, or nonprofit entity cancel at the 
267.22 	end of the state fiscal year unless appropriating or statutory language permits otherwise.

267.23 	Sec. 18. Minnesota Statutes 2006, section 518A.56, is amended by adding a 
267.24 	subdivision to read:
267.25 		Subd. 13.Child support payment center. Payments to the commissioner from 
267.26 	other governmental units, private enterprises, and individuals for services performed by 
267.27 	the child support payment center must be deposited in the state systems account authorized 
267.28 	under section 256.014. These payments are appropriated to the commissioner for the 
267.29 	operation of the child support payment center or system, according to section 256.014.

267.30 	Sec. 19. COMPENSATION INCREASES.
 267.31 	The appropriations in this article, and any statutory appropriations from which 
267.32 	state employee compensation is paid from any fund, include an amount sufficient to fund 
267.33 	compensation increases of at least 3.25 percent of the 2007 compensation base for the first 
268.1 	year, compounded at the rate of 3.25 percent for the second year. This amount must be 
268.2 	used for that purpose and no other.

268.3 	Sec. 20. NONGRANT OPERATING CARRYFORWARD.
 268.4 	At the end of the second year of the biennium, any remaining nongrant operating 
268.5 	balances in the Department of Human Services, Minnesota Department of Health, 
268.6 	veterans homes, health-related boards, emergency medical services boards, Council on 
268.7 	Disability, the ombudsman for mental health and developmental disabilities, and the 
268.8 	ombudsman for families direct appropriated accounts may be transferred, with the 
268.9 	approval of the commissioner of finance, to a special revenue account. Funds in those 
268.10 	accounts are appropriated for costs associated with onetime technology, infrastructure, 
268.11 	and systems development projects. Remaining nongrant operating balances in fiscal year 
268.12 	2007 in the Minnesota sex offender program and the Minnesota security hospital shall 
268.13 	not be transferred.
268.14 	(a) Transfers to a special revenue account shall be reported to the chairs and the 
268.15 	ranking members of the senate Health and Human Services Budget Division and the house 
268.16 	of representatives Health Care and Human Services Finance Division.
268.17 	(b) When these balances originate in nongeneral funds, the transfers shall be made 
268.18 	to separate accounts within the same funds and may only be used to support projects 
268.19 	relevant to the original funding source.
268.20 	(c) Uses of these special revenue account funds shall be reported annually by each 
268.21 	agency to the commissioner of finance, and to the chairs and ranking members of the 
268.22 	senate Health and Human Services Budget Division and the house of representatives 
268.23 	Health Care and Human Services Finance Division.
268.24 	(d) Notwithstanding any contrary provision of this article, this section shall not 
268.25 	expire.

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

268.27 	Sec. 21. TRANSFERS.
 268.28 		Subdivision 1.Grants. The commissioner of human services, with the approval 
268.29 	of the commissioner of finance and after notifying the chairs of the senate and house of 
268.30 	representatives committees with jurisdiction, may transfer unencumbered appropriation 
268.31 	balances for the biennium ending June 30, 2009, within fiscal years among the MFIP; 
268.32 	general assistance; general assistance medical care; medical assistance; MFIP child 
268.33 	care assistance under Minnesota Statutes, section 119B.05; Minnesota supplemental aid 
269.1 	and group residential housing programs; and the entitlement portion of the chemical 
269.2 	dependency consolidated treatment fund, and between fiscal years of the biennium.
269.3 		Subd. 2.Administration. Positions, salary money, and nonsalary administrative 
269.4 	money may be transferred within the Departments of Human Services and Health and 
269.5 	within the programs operated by the Veterans Nursing Homes Board as the commissioners 
269.6 	and the board consider necessary, with the advance approval of the commissioner 
269.7 	of finance. The commissioner or the board shall inform the chairs of the house of 
269.8 	representatives and senate committees with jurisdiction quarterly about transfers made 
269.9 	under this provision.

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

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

269.16 	Sec. 24. EFFECTIVE DATE.
 269.17 	The provisions in this article are effective July 1, 2007, unless a different effective 
269.18 	date is specified.