1.1 	A bill for an act
1.2 	relating to state government; making changes to health and human services 
1.3 	programs; changing children and family provisions; amending child welfare 
1.4 	provisions; modifying licensing provisions; amending health care programs 
1.5 	and policy; modifying continuing care programs and policy; amending mental 
1.6 	and chemical health provisions; changing Department of Health provisions 
1.7 	and policy; establishing a children's health program; changing public health 
1.8 	provisions and policy; amending MinnesotaCare, medical assistance, and 
1.9 	general assistance medical care; instituting health care reform; establishing the 
1.10 	Minnesota Health Insurance Exchange; requiring Section 125 Plans; modifying 
1.11 	health insurance provisions; establishing family supportive services; providing 
1.12 	rate increases for certain providers and nursing facilities; changing health 
1.13 	records information provisions; making technical changes; providing penalties; 
1.14 	establishing task forces; changing certain fees; requiring reports; making forecast 
1.15 	adjustments; appropriating money for human services and health; appropriating 
1.16 	money for various state boards and councils;amending Minnesota Statutes 
1.17 	2006, sections 13.381, by adding a subdivision; 13.46, subdivision 2; 16A.10, 
1.18 	by adding a subdivision; 16A.724, subdivision 2, by adding subdivisions; 
1.19 	16B.61, by adding a subdivision; 16D.13, subdivision 3; 47.58, subdivision 8; 
1.20 	62E.02, subdivision 7; 62E.141; 62H.02; 62J.07, subdivisions 1, 2, 3; 62J.17, 
1.21 	subdivisions 2, 4a, 6a, 7; 62J.41, subdivision 1; 62J.495; 62J.52, subdivisions 1, 
1.22 	2; 62J.60, subdivisions 2, 3; 62J.692, subdivisions 1, 4, 5, 8; 62J.81, subdivision 
1.23 	1; 62J.82; 62L.02, subdivision 11; 62L.12, subdivisions 2, 4; 62Q.165, 
1.24 	subdivisions 1, 2; 62Q.80, subdivisions 3, 4, 13, 14, by adding a subdivision; 
1.25 	69.021, subdivision 11; 103I.101, subdivision 6; 103I.208, subdivisions 1, 
1.26 	2; 103I.235, subdivision 1; 119B.011, by adding a subdivision; 119B.035, 
1.27 	subdivision 1; 119B.05, subdivision 1; 119B.09, subdivisions 1, 7, by adding 
1.28 	subdivisions; 119B.12; 119B.125, subdivision 2; 119B.13, subdivisions 1, 3a, 6, 
1.29 	7; 119B.21, subdivision 5; 144.05, by adding a subdivision; 144.123; 144.125; 
1.30 	144.2215, subdivision 1; 144.3345; 144.565; 144.651, subdivisions 9, 10, 26; 
1.31 	144.698, subdivision 1; 144.9507, by adding a subdivision; 144.9512; 144A.073, 
1.32 	subdivision 4; 144A.351; 144D.03, subdivision 1; 144E.101, subdivision 6; 
1.33 	144E.127; 144E.35, subdivision 1; 145A.17; 145C.05; 145C.07, by adding 
1.34 	a subdivision; 148.235, by adding a subdivision; 148.6445, subdivisions 1, 
1.35 	2; 148B.53, subdivision 3; 148C.11, subdivision 1; 149A.52, subdivision 3; 
1.36 	149A.97, subdivision 7; 151.19, subdivision 2; 151.37, subdivision 2; 152.11, 
1.37 	by adding a subdivision; 157.16, subdivision 1; 169A.70, subdivision 4; 
1.38 	179A.03, subdivision 7; 198.075; 245.462, subdivision 20; 245.465, by adding a 
1.39 	subdivision; 245.4712, subdivision 1; 245.4874; 245.50, subdivision 5; 245.771, 
2.1 	by adding a subdivision; 245.98, subdivision 2; 245A.035; 245A.10, subdivision 
2.2 	2; 245A.16, subdivisions 1, 3; 245C.02, by adding a subdivision; 245C.04, 
2.3 	subdivision 1; 245C.05, subdivisions 1, 4, 5, 7, by adding a subdivision; 245C.08, 
2.4 	subdivisions 1, 2; 245C.10, by adding a subdivision; 245C.11, subdivisions 1, 2; 
2.5 	245C.12; 245C.16, subdivision 1; 245C.17, by adding a subdivision; 245C.21, 
2.6 	by adding a subdivision; 245C.23, subdivision 2; 246.54, subdivisions 1, 2; 
2.7 	252.27, subdivision 2a; 252.32, subdivision 3; 253B.185, subdivision 2, by 
2.8 	adding a subdivision; 254A.03, subdivision 3; 254A.16, subdivision 2; 254B.02, 
2.9 	subdivisions 1, 5; 254B.03, subdivisions 1, 3; 254B.06, subdivision 3; 256.01, 
2.10 	subdivisions 2, 2b, 4, by adding subdivisions; 256.015, subdivision 7; 256.017, 
2.11 	subdivisions 1, 9; 256.476, subdivisions 1, 2, 3, 4, 5, 10; 256.969, subdivisions 
2.12 	3a, 9, 27, by adding a subdivision; 256.974; 256.9741, subdivisions 1, 3; 
2.13 	256.9742, subdivisions 3, 4, 6; 256.9744, subdivision 1; 256.975, subdivision 7, 
2.14 	by adding a subdivision; 256.984, subdivision 1; 256B.04, subdivision 14, by 
2.15 	adding a subdivision; 256B.055, subdivision 14; 256B.056, subdivisions 1a, 3, 
2.16 	10, by adding a subdivision; 256B.057, by adding a subdivision; 256B.0621, 
2.17 	subdivision 11; 256B.0622, subdivision 2; 256B.0623, subdivision 5; 256B.0625, 
2.18 	subdivisions 3f, 5a, 5k, 13c, 13d, 18a, 20, 23, 47, by adding subdivisions; 
2.19 	256B.0631, subdivisions 1, 3; 256B.0644; 256B.0651, subdivision 7; 256B.0655, 
2.20 	subdivisions 1b, 1f, 3, 8, by adding subdivisions; 256B.0911, subdivisions 1a, 
2.21 	3a, 3b, 4b, 4c, 6, 7, by adding subdivisions; 256B.0913, subdivisions 4, 5, 
2.22 	5a, 8, 9, 10, 11, 12, 13, 14, by adding a subdivision; 256B.0915; 256B.0919, 
2.23 	subdivision 3; 256B.0943, subdivisions 6, 8, 9, 11, 12; 256B.0945, subdivision 
2.24 	4; 256B.095; 256B.0951, subdivision 1; 256B.15, by adding a subdivision; 
2.25 	256B.199; 256B.27, subdivision 2a; 256B.431, subdivisions 1, 2e, 3f, 17a, 17e, 
2.26 	41; 256B.434, subdivision 4, by adding subdivisions; 256B.437, by adding a 
2.27 	subdivision; 256B.441, subdivisions 1, 2, 5, 6, 10, 11, 13, 14, 17, 20, 24, 30, 31, 
2.28 	34, 38, by adding subdivisions; 256B.49, subdivision 11, by adding a subdivision; 
2.29 	256B.5012, by adding a subdivision; 256B.69, subdivisions 4, 5g, 5h, 23; 
2.30 	256B.75; 256B.76; 256B.763; 256D.03, subdivisions 3, 4; 256E.35, subdivision 
2.31 	2; 256I.04, subdivision 3; 256I.05, by adding subdivisions; 256J.01, by adding 
2.32 	a subdivision; 256J.02, subdivisions 1, 4, by adding a subdivision; 256J.021; 
2.33 	256J.08, subdivision 65; 256J.20, subdivision 3; 256J.21, subdivision 2; 256J.32, 
2.34 	subdivision 6; 256J.37, subdivision 3a; 256J.42, subdivision 1; 256J.46, by 
2.35 	adding a subdivision; 256J.49, subdivision 13; 256J.521, subdivisions 1, 2; 
2.36 	256J.53, subdivision 2; 256J.55, subdivision 1; 256J.626, subdivisions 1, 2, 3, 4, 
2.37 	5, 6, 7; 256J.751, subdivisions 2, 5; 256J.77; 256J.95, subdivision 3; 256K.45, 
2.38 	by adding a subdivision; 256L.01, subdivisions 1, 4; 256L.03, subdivisions 
2.39 	1, 3, 5; 256L.04, subdivisions 1, 7, 12; 256L.05, subdivisions 1, 1b, 2, 3a; 
2.40 	256L.07, subdivisions 1, 2, 6, by adding a subdivision; 256L.09, subdivision 4; 
2.41 	256L.11, subdivision 7; 256L.12, subdivision 9a; 256L.15, subdivisions 1, 2, 3, 
2.42 	4; 256L.17, subdivisions 2, 3, 7; 259.20, subdivision 2; 259.24, subdivision 3; 
2.43 	259.29, subdivision 1; 259.41; 259.53, subdivisions 1, 2; 259.57, subdivisions 
2.44 	1, 2; 259.67, subdivisions 4, 7; 259.75, subdivision 8; 260.012; 260.755, 
2.45 	subdivisions 12, 20; 260.761, subdivision 7; 260.765, subdivision 5; 260.771, 
2.46 	subdivisions 1, 2; 260B.157, subdivision 1; 260C.152, subdivision 5; 260C.163, 
2.47 	subdivision 1; 260C.201, subdivision 11; 260C.209; 260C.212, subdivisions 1, 2, 
2.48 	4, 9; 260C.317, subdivision 3; 260C.331, subdivision 1; 270B.14, subdivision 1; 
2.49 	462A.05, by adding a subdivision; 471.59, subdivision 1; 518A.56, by adding a 
2.50 	subdivision; 609.115, subdivisions 8, 9; 626.556, subdivisions 2, 3, 10, 10a, 10c, 
2.51 	10f, by adding subdivisions; Laws 2000, chapter 340, section 19; Laws 2005, 
2.52 	chapter 98, article 3, section 25; Laws 2005, First Special Session chapter 4, 
2.53 	article 9, section 3, subdivision 2; Laws 2006, chapter 282, article 20, section 37; 
2.54 	proposing coding for new law in Minnesota Statutes, chapters 16C; 62A; 62J; 
2.55 	62Q; 144; 145; 148; 149A; 151; 152; 156; 245; 245A; 245C; 252; 254A; 256; 
2.56 	256B; 256C; 256D; 256F; 256J; 256L; 260; repealing Minnesota Statutes 2006, 
2.57 	sections 62A.301; 62J.052, subdivision 1; 62J.692, subdivision 10; 119B.08, 
2.58 	subdivision 4; 144.335; 252.21; 252.22; 252.23; 252.24; 252.25; 252.261; 
3.1 	252.275, subdivision 5; 254A.02, subdivisions 7, 9, 12, 14, 15, 16; 254A.085; 
3.2 	254A.086; 254A.12; 254A.14; 254A.15; 254A.16, subdivision 5; 254A.175; 
3.3 	254A.18; 256.9743; 256B.0631, subdivision 4; 256B.0913, subdivisions 5b, 5c, 
3.4 	5d, 5e, 5f, 5g, 5h; 256B.441, subdivisions 12, 16, 21, 26, 28, 42, 45; 256J.24, 
3.5 	subdivision 6; 256J.29; 256J.37, subdivision 3b; 256J.561, subdivision 1; 
3.6 	256J.62, subdivision 9; 256J.626, subdivision 9; 256J.65; 256L.035; 256L.07, 
3.7 	subdivision 2a; Laws 1997, chapter 8, section 1; Laws 2004, chapter 288, 
3.8 	article 6, section 27; Laws 2006, chapter 249, section 6; Minnesota Rules, parts 
3.9 	4610.2800; 9503.0035, subpart 2; 9560.0102, subpart 2, item C; 9585.0030.
3.10 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.11 	ARTICLE 1
3.12 	CHILD WELFARE POLICY

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

53.10 	ARTICLE 2
53.11 	CHILDREN AND FAMILY

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

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

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

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

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

58.29 	Sec. 6. Minnesota Statutes 2006, section 119B.09, subdivision 1, is amended to read:
58.30 		Subdivision 1.General Eligibility requirements for all applicants for child 
58.31 	care assistance. (a) Child care services must be available to families who need child 
58.32 	care to find or keep employment or to obtain the training or education necessary to find 
58.33 	employment and who:
59.1 	(1) have household income less than or equal to 250 percent of the federal poverty 
59.2 	guidelines, adjusted for family size, and meet the requirements of section 119B.05; 
59.3 	receive MFIP assistance; and are participating in employment and training services under 
59.4 	chapter 256J or 256K; or
59.5 	(2) have household income less than or equal to 175 percent of the federal poverty 
59.6 	guidelines, adjusted for family size, at program entry and less than 250 percent of the 
59.7 	federal poverty guidelines, adjusted for family size, at program exit.; or
59.8 	(3) have household income less than or equal to 250 percent of the federal poverty 
59.9 	guidelines, adjusted for family size, and were a family whose child care assistance was 
59.10 	terminated due to insufficient funds under Minnesota Rules, part 3400.0183.
59.11 	(b) Child care services must be made available as in-kind services.
59.12 	(c) All applicants for child care assistance and families currently receiving child care 
59.13 	assistance must be assisted and required to cooperate in establishment of paternity and 
59.14 	enforcement of child support obligations for all children in the family as a condition 
59.15 	of program eligibility. For purposes of this section, a family is considered to meet the 
59.16 	requirement for cooperation when the family complies with the requirements of section 
59.17 	256.741.

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

59.19 	Sec. 7. Minnesota Statutes 2006, section 119B.09, subdivision 7, is amended to read:
59.20 		Subd. 7.Date of eligibility for assistance. (a) The date of eligibility for child 
59.21 	care assistance under this chapter is the later of the date the application was signed; the 
59.22 	beginning date of employment, education, or training; the date the infant is born for 
59.23 	applicants to the at-home infant care program; or the date a determination has been made 
59.24 	that the applicant is a participant in employment and training services under Minnesota 
59.25 	Rules, part 3400.0080, subpart 2a, or chapter 256J.
59.26 	(b) Payment ceases for a family under the at-home infant child care program when a 
59.27 	family has used a total of 12 months of assistance as specified under section 119B.035. 
59.28 	Payment of child care assistance for employed persons on MFIP is effective the date of 
59.29 	employment or the date of MFIP eligibility, whichever is later. Payment of child care 
59.30 	assistance for MFIP or DWP participants in employment and training services is effective 
59.31 	the date of commencement of the services or the date of MFIP or DWP eligibility, 
59.32 	whichever is later. Payment of child care assistance for transition year child care must be 
59.33 	made retroactive to the date of eligibility for transition year child care. 
60.1 	(c) Notwithstanding paragraph (b), payment of child care assistance for participants 
60.2 	eligible under section 119B.05, may only be made retroactively for a maximum of six 
60.3 	months from the date of application for child care assistance.

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

60.5 	Sec. 8. Minnesota Statutes 2006, section 119B.09, is amended by adding a subdivision 
60.6 	to read:
60.7 		Subd. 11.Payment of other child care expenses. Payment by a source other 
60.8 	than the family, of part or all of a family's child care expenses not payable under this 
60.9 	chapter, does not affect the family's eligibility for child care assistance, and the amount 
60.10 	paid is excluded from the family's income, if the funds are paid directly to the family's 
60.11 	child care provider on behalf of the family. Child care providers who accept third-party 
60.12 	payments must maintain family-specific documentation of payment source, amount, type 
60.13 	of expenses, and time period covered by the payment.

60.14 	Sec. 9. Minnesota Statutes 2006, section 119B.09, is amended by adding a subdivision 
60.15 	to read:
60.16 		Subd. 12.Sliding fee. Child care services to families must be made available on a 
60.17 	sliding fee basis. The commissioner shall convert eligibility requirements in section 
60.18 	119B.09 and parent fee schedules in 119B.12 to state median income, based on a family 
60.19 	size of three, adjusted for family size, by July 1, 2008. The commissioner shall report 
60.20 	to the 2008 legislature with the necessary statutory changes to codify this conversion 
60.21 	to state median income. 

60.22 	Sec. 10. Minnesota Statutes 2006, section 119B.12, is amended to read:
60.23 	119B.12 SLIDING FEE SCALE.
60.24 		Subdivision 1.Fee schedule. In setting the sliding fee schedule, the commissioner 
60.25 	shall exclude from the amount of income used to determine eligibility an amount for 
60.26 	federal and state income and Social Security taxes attributable to that income level 
60.27 	according to federal and state standardized tax tables. The commissioner shall base the 
60.28 	parent fee on the ability of the family to pay for child care. The fee schedule must be 
60.29 	designed to use any available tax credits.
60.30 	PARENT FEE SCHEDULE.   The parent fee schedule is as follows: 

60.31
60.32	Income Range (as a percent of the federal 
poverty guidelines)
	Co-payment (as a percentage of adjusted 
gross income)
	
60.33	 0-74.99%
	$0/month
	
61.1	75.00-99.99%
	$5/month
	
61.2	100.00-104.99%
	2.61%
	
61.3	105.00-109.99%
	2.61%
	
61.4	110.00-114.99%
	2.61%
	
61.5	115.00-119.99%
	2.61%
	
61.6	120.00-124.99%
	2.91%
	
61.7	125.00-129.99%
	2.91%
	
61.8	130.00-134.99%
	2.91%
	
61.9	135.00-139.99%
	2.91%
	
61.10	140.00-144.99%
	3.21%
	
61.11	145.00-149.99%
	3.21%
	
61.12	150.00-154.99%
	3.21%
	
61.13	155.00-159.99%
	3.84%
	
61.14	160.00-164.99%
	3.84%
	
61.15	165.00-169.99%
	4.46%
	
61.16	170.00-174.99%
	4.76%
	
61.17	175.00-179.99%
	5.05%
	
61.18	180.00-184.99%
	5.65%
	
61.19	185.00-189.99%
	5.95%
	
61.20	190.00-194.99%
	6.24%
	
61.21	195.00-199.99%
	6.84%
	
61.22	200.00-204.99%
	7.58%
	
61.23	205.00-209.99%
	8.33%
	
61.24	210.00-214.99%
	9.20%
	
61.25	215.00-219.99%
	10.07%
	
61.26	220.00-224.99%
	10.94%
	
61.27	225.00-229.99%
	11.55%
	
61.28	230.00-234.99%
	12.16%
	
61.29	235.00-239.99%
	12.77%
	
61.30	240.00-244.99%
	13.38%
	
61.31	245.00-249.99%
	14.00%
	
61.32	250%
	ineligible
	
61.33 	A family's monthly co-payment fee is the fixed percentage established for the 
61.34 	income range multiplied by the highest possible income within that income range.
61.35 		Subd. 2.Parent fee. A family must be assessed a parent fee for each service period. 
61.36 	A family's parent fee must be a fixed percentage of its annual gross income. Parent fees 
61.37 	must apply to families eligible for child care assistance under sections 119B.03 and 
61.38 	119B.05. Income must be as defined in section 119B.011, subdivision 15. The fixed 
61.39 	percent is based on the relationship of the family's annual gross income to 100 percent 
61.40 	of the annual federal poverty guidelines. Parent fees must begin at 75 percent of the 
61.41 	poverty level. The minimum parent fees for families between 75 percent and 100 percent 
62.1 	of poverty level must be $10 $5 per month. Parent fees must provide for graduated 
62.2 	movement to full payment. Payment of part or all of a family's parent fee directly to the 
62.3 	family's child care provider on behalf of the family by a source other than the family shall 
62.4 	not affect the family's eligibility for child care assistance, and the amount paid shall be 
62.5 	excluded from the family's income. Child care providers who accept third-party payments 
62.6 	must maintain family specific documentation of payment source, amount, and time period 
62.7 	covered by the payment.

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

62.12 	Sec. 11. Minnesota Statutes 2006, section 119B.125, subdivision 2, is amended to read:
62.13 		Subd. 2.Persons who cannot be authorized. (a) A person who meets any of the 
62.14 	conditions under paragraphs (b) to (n) must not be authorized as a legal nonlicensed 
62.15 	family child care provider. To determine whether any of the listed conditions exist, 
62.16 	the county must request information about the provider from the Bureau of Criminal 
62.17 	Apprehension, the juvenile courts, and social service agencies. When one of the listed 
62.18 	entities does not maintain information on a statewide basis, the county must contact the 
62.19 	entity in the county where the provider resides and any other county in which the provider 
62.20 	previously resided in the past year. For purposes of this subdivision, a finding that a 
62.21 	delinquency petition is proven in juvenile court must be considered a conviction in state 
62.22 	district court. If a county has determined that a provider is able to be authorized in that 
62.23 	county, and a family in another county later selects that provider, the provider is able to 
62.24 	be authorized in the second county without undergoing a new background investigation 
62.25 	unless one of the following conditions exists:
62.26 	(1) two years have passed since the first authorization;
62.27 	(2) another person age 13 or older has joined the provider's household since the 
62.28 	last authorization;
62.29 	(3) a current household member has turned 13 since the last authorization; or
62.30 	(4) there is reason to believe that a household member has a factor that prevents 
62.31 	authorization.
62.32 	(b) The person has been convicted of one of the following offenses or has admitted to 
62.33 	committing or a preponderance of the evidence indicates that the person has committed an 
62.34 	act that meets the definition of one of the following offenses: sections 609.185 to 609.195, 
62.35 	murder in the first, second, or third degree; 609.2661 to 609.2663, murder of an unborn 
63.1 	child in the first, second, or third degree; 609.322, solicitation, inducement, promotion 
63.2 	of prostitution, or receiving profit from prostitution; 609.342 to 609.345, criminal sexual 
63.3 	conduct in the first, second, third, or fourth degree; 609.352, solicitation of children to 
63.4 	engage in sexual conduct; 609.365, incest; 609.377, felony malicious punishment of a 
63.5 	child; 617.246, use of minors in sexual performance; 617.247, possession of pictorial 
63.6 	representation of a minor; 609.2242 to 609.2243, felony domestic assault; a felony offense 
63.7 	of spousal abuse; a felony offense of child abuse or neglect; a felony offense of a crime 
63.8 	against children; or an attempt or conspiracy to commit any of these offenses as defined in 
63.9 	Minnesota Statutes; or an offense in any other state or country where the elements are 
63.10 	substantially similar to any of the offenses listed in this paragraph.
63.11 	(c) Less than 15 years have passed since the discharge of the sentence imposed for 
63.12 	the offense and the person has received a felony conviction for one of the following 
63.13 	offenses, or the person has admitted to committing or a preponderance of the evidence 
63.14 	indicates that the person has committed an act that meets the definition of a felony 
63.15 	conviction for one of the following offenses: sections 609.20 to 609.205, manslaughter in 
63.16 	the first or second degree; 609.21, criminal vehicular homicide; 609.215, aiding suicide 
63.17 	or aiding attempted suicide; 609.221 to 609.2231, assault in the first, second, third, or 
63.18 	fourth degree; 609.224, repeat offenses of fifth degree assault; 609.228, great bodily 
63.19 	harm caused by distribution of drugs; 609.2325, criminal abuse of a vulnerable adult; 
63.20 	609.2335, financial exploitation of a vulnerable adult; 609.235, use of drugs to injure or 
63.21 	facilitate a crime; 609.24, simple robbery; 617.241, repeat offenses of obscene materials 
63.22 	and performances; 609.245, aggravated robbery; 609.25, kidnapping; 609.255, false 
63.23 	imprisonment; 609.2664 to 609.2665, manslaughter of an unborn child in the first or 
63.24 	second degree; 609.267 to 609.2672, assault of an unborn child in the first, second, or third 
63.25 	degree; 609.268, injury or death of an unborn child in the commission of a crime; 609.27, 
63.26 	coercion; 609.275, attempt to coerce; 609.324, subdivision 1, other prohibited acts, minor 
63.27 	engaged in prostitution; 609.3451, repeat offenses of criminal sexual conduct in the fifth 
63.28 	degree; 609.378, neglect or endangerment of a child; 609.52, theft; 609.521, possession of 
63.29 	shoplifting gear; 609.561 to 609.563, arson in the first, second, or third degree; 609.582, 
63.30 	burglary in the first, second, third, or fourth degree; 609.625, aggravated forgery; 609.63, 
63.31 	forgery; 609.631, check forgery, offering a forged check; 609.635, obtaining signature 
63.32 	by false pretenses; 609.66, dangerous weapon; 609.665, setting a spring gun; 609.67, 
63.33 	unlawfully owning, possessing, or operating a machine gun; 609.687, adulteration; 609.71, 
63.34 	riot; 609.713, terrorist threats; 609.749, harassment, stalking; 260C.301, termination of 
63.35 	parental rights; 152.021 to 152.022 and 152.0262, controlled substance crime in the first 
63.36 	or second degree; 152.023, subdivision 1, clause (3) or (4), or 152.023, subdivision 2, 
64.1 	clause (4), controlled substance crime in third degree; 152.024, subdivision 1, clause 
64.2 	(2), (3), or (4), controlled substance crime in fourth degree; 617.23, repeat offenses of 
64.3 	indecent exposure; an attempt or conspiracy to commit any of these offenses as defined in 
64.4 	Minnesota Statutes; or an offense in any other state or country where the elements are 
64.5 	substantially similar to any of the offenses listed in this paragraph.
64.6 	(d) Less than ten years have passed since the discharge of the sentence imposed for 
64.7 	the offense and the person has received a gross misdemeanor conviction for one of the 
64.8 	following offenses or the person has admitted to committing or a preponderance of the 
64.9 	evidence indicates that the person has committed an act that meets the definition of a gross 
64.10 	misdemeanor conviction for one of the following offenses: sections 609.224, fifth degree 
64.11 	assault; 609.2242 to 609.2243, domestic assault; 518B.01, subdivision 14, violation of 
64.12 	an order for protection; 609.3451, fifth degree criminal sexual conduct; 609.746, repeat 
64.13 	offenses of interference with privacy; 617.23, repeat offenses of indecent exposure; 
64.14 	617.241, obscene materials and performances; 617.243, indecent literature, distribution; 
64.15 	617.293, disseminating or displaying harmful material to minors; 609.71, riot; 609.66, 
64.16 	dangerous weapons; 609.749, harassment, stalking; 609.224, subdivision 2, paragraph 
64.17 	(c), fifth degree assault against a vulnerable adult by a caregiver; 609.23, mistreatment 
64.18 	of persons confined; 609.231, mistreatment of residents or patients; 609.2325, criminal 
64.19 	abuse of a vulnerable adult; 609.2335, financial exploitation of a vulnerable adult; 
64.20 	609.233, criminal neglect of a vulnerable adult; 609.234, failure to report maltreatment of 
64.21 	a vulnerable adult; 609.72, subdivision 3, disorderly conduct against a vulnerable adult; 
64.22 	609.265, abduction; 609.378, neglect or endangerment of a child; 609.377, malicious 
64.23 	punishment of a child; 609.324, subdivision 1a, other prohibited acts, minor engaged 
64.24 	in prostitution; 609.33, disorderly house; 609.52, theft; 609.582, burglary in the first, 
64.25 	second, third, or fourth degree; 609.631, check forgery, offering a forged check; 609.275, 
64.26 	attempt to coerce; an attempt or conspiracy to commit any of these offenses as defined in 
64.27 	Minnesota Statutes; or an offense in any other state or country where the elements are 
64.28 	substantially similar to any of the offenses listed in this paragraph.
64.29 	(e) Less than seven years have passed since the discharge of the sentence imposed 
64.30 	for the offense and the person has received a misdemeanor conviction for one of the 
64.31 	following offenses or the person has admitted to committing or a preponderance of 
64.32 	the evidence indicates that the person has committed an act that meets the definition 
64.33 	of a misdemeanor conviction for one of the following offenses: sections 609.224, fifth 
64.34 	degree assault; 609.2242, domestic assault; 518B.01, violation of an order for protection; 
64.35 	609.3232, violation of an order for protection; 609.746, interference with privacy; 609.79, 
64.36 	obscene or harassing telephone calls; 609.795, letter, telegram, or package opening, 
65.1 	harassment; 617.23, indecent exposure; 609.2672, assault of an unborn child, third degree; 
65.2 	617.293, dissemination and display of harmful materials to minors; 609.66, dangerous 
65.3 	weapons; 609.665, spring guns; an attempt or conspiracy to commit any of these offenses 
65.4 	as defined in Minnesota Statutes; or an offense in any other state or country where the 
65.5 	elements are substantially similar to any of the offenses listed in this paragraph.
65.6 	(f) The person has been identified by the child protection agency in the county where 
65.7 	the provider resides or a county where the provider has resided or by the statewide child 
65.8 	protection database as a person found by a preponderance of evidence under section 
65.9 	626.556 to be responsible for physical or sexual abuse of a child within the last seven years.
65.10 	(g) The person has been identified by the adult protection agency in the county 
65.11 	where the provider resides or a county where the provider has resided or by the statewide 
65.12 	adult protection database as the person responsible for abuse or neglect of a vulnerable 
65.13 	adult within the last seven years.
65.14 	(h) The person has refused to give written consent for disclosure of criminal history 
65.15 	records.
65.16 	(i) The person has been denied a family child care license or has received a fine or a 
65.17 	sanction as a licensed child care provider that has not been reversed on appeal.
65.18 	(j) The person has a family child care licensing disqualification that has not been 
65.19 	set aside.
65.20 	(k) The person has admitted or a county has found that there is a preponderance of 
65.21 	evidence that fraudulent information was given to the county for child care assistance 
65.22 	application purposes or was used in submitting child care assistance bills for payment.
65.23 	(l) The person has been convicted of the crime of theft by wrongfully obtaining 
65.24 	public assistance or has been found guilty of wrongfully obtaining public assistance by a 
65.25 	federal court, state court, or an administrative hearing determination or waiver, through a 
65.26 	disqualification consent agreement, as part of an approved diversion plan under section 
65.27 	401.065, or a court-ordered stay with probationary or other conditions.
65.28 	(m) The person has a household member age 13 or older who has access to children 
65.29 	during the hours that care is provided and who meets one of the conditions listed in 
65.30 	paragraphs (b) to (l).
65.31 	(n) The person has a household member ages ten to 12 who has access to children 
65.32 	during the hours that care is provided; information or circumstances exist which provide 
65.33 	the county with articulable suspicion that further pertinent information may exist showing 
65.34 	the household member meets one of the conditions listed in paragraphs (b) to (l); and the 
65.35 	household member actually meets one of the conditions listed in paragraphs (b) to (l).

66.1 	Sec. 12. Minnesota Statutes 2006, section 119B.13, subdivision 1, is amended to read:
66.2 		Subdivision 1.Subsidy restrictions. (a) Beginning July 1, 2006, the maximum rate 
66.3 	paid for child care assistance in any county or multicounty region under the child care 
66.4 	fund shall be the  rate for like-care arrangements in the county effective January 1, 2006, 
66.5 	increased by six percent.
66.6 	(b) Rate changes shall be implemented for services provided in September 2006 
66.7 	unless a participant eligibility redetermination or a new provider agreement is completed 
66.8 	between July 1, 2006, and August 31, 2006.
66.9 	As necessary, appropriate notice of adverse action must be made according to 
66.10 	Minnesota Rules, part 3400.0185, subparts 3 and 4.
66.11 	New cases approved on or after  July 1, 2006, shall have the maximum rates under 
66.12 	paragraph (a), implemented immediately.
66.13 	(c) Not less than once every two years Every year, the commissioner shall survey 
66.14 	rates charged by child care providers in Minnesota to determine the 75th percentile for 
66.15 	like-care arrangements in counties. When the commissioner determines that, using the 
66.16 	commissioner's established protocol, the number of providers responding to the survey is 
66.17 	too small to determine the 75th percentile rate for like-care arrangements in a county or 
66.18 	multicounty region, the commissioner may establish the 75th percentile maximum rate 
66.19 	based on like-care arrangements in a county, region, or category that the commissioner 
66.20 	deems to be similar.
66.21 	(d) A rate which includes a special needs rate paid under subdivision 3 or under 
66.22 	a school readiness service agreement paid under section 61 may be in excess of the 
66.23 	maximum rate allowed under this subdivision.
66.24 	(e) The department shall monitor the effect of this paragraph on provider rates. The 
66.25 	county shall pay the provider's full charges for every child in care up to the maximum 
66.26 	established. The commissioner shall determine the maximum rate for each type of care on 
66.27 	an hourly, full-day, and weekly basis, including special needs and disability care.
66.28 	(f) When the provider charge is greater than the maximum provider rate allowed, 
66.29 	the parent is responsible for payment of the difference in the rates in addition to any 
66.30 	family co-payment fee.

66.31 	Sec. 13. Minnesota Statutes 2006, section 119B.13, subdivision 3a, is amended to read:
66.32 		Subd. 3a.Provider rate differential for accreditation. A family child care 
66.33 	provider or child care center shall be paid a 15 percent differential above the maximum 
66.34 	rate established in subdivision 1, up to the actual provider rate, if the provider or center 
66.35 	holds a current early childhood development credential or is accredited.  For a family 
67.1 	child care provider, early childhood development credential and accreditation includes 
67.2 	an individual who has earned a child development associate degree, a child development 
67.3 	associate credential, a diploma in child development from a Minnesota state technical 
67.4 	college, or a bachelor's or post baccalaureate degree in early childhood education from 
67.5 	an accredited college or university, or who is accredited by the National Association for 
67.6 	Family Child Care or the Competency Based Training and Assessment Program.  For a 
67.7 	child care center, accreditation includes accreditation by the National Association for the 
67.8 	Education of Young Children, the Council on Accreditation, the National Early Childhood 
67.9 	Program Accreditation, the National School-Age Care Association, or the National Head 
67.10 	Start Association Program of Excellence.  For Montessori programs, accreditation includes 
67.11 	the American Montessori Society, Association of Montessori International-USA, or the 
67.12 	National Center for Montessori Education.

67.13 	Sec. 14. Minnesota Statutes 2006, section 119B.13, subdivision 6, is amended to read:
67.14 		Subd. 6.Provider payments. (a) Counties or the state shall make vendor payments 
67.15 	to the child care provider or pay the parent directly for eligible child care expenses.
67.16 	(b) If payments for child care assistance are made to providers, the provider shall 
67.17 	bill the county for services provided within ten days of the end of the service period. If 
67.18 	bills are submitted within ten days of the end of the service period, a county or the state 
67.19 	shall issue payment to the provider of child care under the child care fund within 30 days 
67.20 	of receiving a bill from the provider. Counties or the state may establish policies that 
67.21 	make payments on a more frequent basis.
67.22 	(c) All billsIf a provider has received an authorization of care and has been issued a 
67.23 	billing form for an eligible family, the bill must be submitted within 60 days of the last 
67.24 	date of service on the bill. A county may pay a bill submitted more than 60 days after 
67.25 	the last date of service if the provider shows good cause why the bill was not submitted 
67.26 	within 60 days. Good cause must be defined in the county's child care fund plan under 
67.27 	section 119B.08, subdivision 3, and the definition of good cause must include county 
67.28 	error. A county may not pay any bill submitted more than a year after the last date of 
67.29 	service on the bill. 
67.30 	(d) If a provider provided care for a time period without receiving an authorization 
67.31 	of care and a billing form for an eligible family, payment of child care assistance may only 
67.32 	be made retroactively for a maximum of six months from the date the provider is issued an 
67.33 	authorization of care and a billing form.
67.34 	(d)(e) A county may stop payment issued to a provider or may refuse to pay a 
67.35 	bill submitted by a provider if:
68.1 	(1) the provider admits to intentionally giving the county materially false information 
68.2 	on the provider's billing forms; or
68.3 	(2) a county finds by a preponderance of the evidence that the provider intentionally 
68.4 	gave the county materially false information on the provider's billing forms.
68.5 	(e)(f) A county's payment policies must be included in the county's child care plan 
68.6 	under section 119B.08, subdivision 3. If payments are made by the state, in addition to 
68.7 	being in compliance with this subdivision, the payments must be made in compliance 
68.8 	with section 16A.124. 

68.9 	Sec. 15. Minnesota Statutes 2006, section 119B.13, subdivision 7, is amended to read:
68.10 		Subd. 7.Absent days. (a) Child care providers may not be reimbursed for more 
68.11 	than 25 full-day absent days per child, excluding holidays, in a fiscal year, or for more 
68.12 	than ten consecutive full-day absent days, unless the child has a documented medical 
68.13 	condition that causes more frequent absences. Absences due to a documented medical 
68.14 	condition of a parent or sibling who lives in the same residence as the child receiving 
68.15 	child care assistance do not count against the 25-day absent day limit in a fiscal year. 
68.16 	Documentation of medical conditions must be on the forms and submitted according to 
68.17 	the timelines established by the commissioner. A public health nurse or school nurse 
68.18 	may verify the illness in lieu of a medical practitioner. If a provider sends a child home 
68.19 	early due to a medical reason, including, but not limited to, fever or contagious illness, 
68.20 	the child care center director or lead teacher may verify the illness in lieu of a medical 
68.21 	practitioner. If a child attends for part of the time authorized to be in care in a day, but is 
68.22 	absent for part of the time authorized to be in care in that same day, the absent time will be 
68.23 	reimbursed but the time will not count toward the ten consecutive or 25 cumulative absent 
68.24 	day limits. Children in families where at least one parent is under the age of 21, does not 
68.25 	have a high school or general equivalency diploma, and is a student in a school district 
68.26 	or another similar program that provides or arranges for child care, as well as parenting, 
68.27 	social services, career and employment supports, and academic support to achieve high 
68.28 	school graduation, may be exempt from the absent day limits upon request of the program 
68.29 	and approval of the county. If a child attends part of an authorized day, payment to the 
68.30 	provider must be for the full amount of care authorized for that day. Child care providers 
68.31 	may only be reimbursed for absent days if the provider has a written policy for child 
68.32 	absences and charges all other families in care for similar absences. 
68.33 	(b) Child care providers must be reimbursed for up to ten federal or state holidays 
68.34 	or designated holidays per year when the provider charges all families for these days 
68.35 	and the holiday or designated holiday falls on a day when the child is authorized to be 
69.1 	in attendance. Parents may substitute other cultural or religious holidays for the ten 
69.2 	recognized state and federal holidays. Holidays do not count toward the ten consecutive or 
69.3 	25 cumulative absent day limits. 
69.4 	(c) A family or child care provider may not be assessed an overpayment for an 
69.5 	absent day payment unless (1) there was an error in the amount of care authorized for the 
69.6 	family, (2) all of the allowed full-day absent payments for the child have been paid, or (3) 
69.7 	the family or provider did not timely report a change as required under law.
69.8 	(d) The provider and family must receive notification of the number of absent days 
69.9 	used upon initial provider authorization for a family and when the family has used 15 
69.10 	cumulative absent days. Upon statewide implementation of the Minnesota Electronic 
69.11 	Child Care System, the provider and family authorization for a family and ongoing 
69.12 	notification of the number of absent days used as of the date of the notification.
69.13 	(e) A county may pay for more absent days than the statewide absent day policy 
69.14 	established under this subdivision if current market practice in the county justifies payment 
69.15 	for those additional days. County policies for payment of absent days in excess of the 
69.16 	statewide absent day policy and justification for these county policies must be included in 
69.17 	the county's child care fund plan under section 119B.08, subdivision 3. This paragraph 
69.18 	may be implemented by counties on or after July 1, 2008.

69.19 	Sec. 16. Minnesota Statutes 2006, section 119B.21, subdivision 5, is amended to read:
69.20 		Subd. 5.Child care services grants. (a) A child care resource and referral program 
69.21 	designated under section 119B.19, subdivision 1a, may award child care services grants 
69.22 	for: 
69.23 	(1) creating new licensed child care facilities and expanding existing facilities, 
69.24 	including, but not limited to, supplies, equipment, facility renovation, and remodeling;
69.25 	(2) improving licensed child care facility programs;
69.26 	(3) staff training and development services including, but not limited to, in-service 
69.27 	training, curriculum development, accreditation, certification, consulting, resource centers, 
69.28 	and program and resource materials, supporting effective teacher-child interactions, 
69.29 	child-focused teaching, and content-driven classroom instruction;
69.30 	(4) interim financing;
69.31 	(5) capacity building through the purchase of appropriate technology to create, 
69.32 	enhance, and maintain business management systems;
69.33 	(6) emergency assistance for child care programs;
69.34 	(7) new programs or projects for the creation, expansion, or improvement of 
69.35 	programs that serve ethnic immigrant and refugee communities; and
70.1 	(8) targeted recruitment initiatives to expand and build the capacity of the child 
70.2 	care system and to improve the quality of care provided by legal nonlicensed child care 
70.3 	providers.
70.4 	(b) A child care resource and referral program designated under section 119B.19, 
70.5 	subdivision 1a, may award child care services grants to: 
70.6 	(1) licensed providers;
70.7 	(2) providers in the process of being licensed;
70.8 	(3) corporations or public agencies that develop or provide child care services;
70.9 	(4) school-age care programs; or
70.10 	(5) any combination of clauses (1) to (4).
70.11 	Unlicensed providers are only eligible for grants under paragraph (a), clause (7).
70.12 	(c) A recipient of a child care services grant for facility improvements, interim 
70.13 	financing, or staff training and development must provide a 25 percent local match.

70.14 	Sec. 17. Minnesota Statutes 2006, section 256.01, subdivision 4, is amended to read:
70.15 		Subd. 4.Duties as state agency. (a) The state agency shall:
70.16 	(1) supervise the administration of assistance to dependent children under Laws 
70.17 	1937, chapter 438, by the county agencies in an integrated program with other service for 
70.18 	dependent children maintained under the direction of the state agency;
70.19 	(2) may subpoena witnesses and administer oaths, make rules, and take such action 
70.20 	as may be necessary, or desirable for carrying out the provisions of Laws 1937, chapter 
70.21 	438. All rules made by the state agency shall be binding on the counties and shall be 
70.22 	complied with by the respective county agencies;
70.23 	(3)(2) establish adequate standards for personnel employed by the counties and the 
70.24 	state agency in the administration of Laws 1937, chapter 438, and make the necessary 
70.25 	rules to maintain such standards;
70.26 	(4)(3) prescribe the form of and print and supply to the county agencies blanks 
70.27 	for applications, reports, affidavits, and such other forms as it may deem necessary and 
70.28 	advisable;
70.29 	(5)(4) cooperate with the federal government and its public welfare agencies 
70.30 	in any reasonable manner as may be necessary to qualify for federal aid for temporary 
70.31 	assistance for needy families and in conformity with title I of Public Law 104-193, the 
70.32 	Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and successor 
70.33 	amendments, including the making of such reports and such forms and containing such 
70.34 	information as the Federal Social Security Board may from time to time require, and 
71.1 	comply with such provisions as such board may from time to time find necessary to assure 
71.2 	the correctness and verification of such reports;
71.3 	(6) may cooperate with other state agencies in establishing reciprocal agreements in 
71.4 	instances where a child receiving Minnesota family investment program assistance moves 
71.5 	or contemplates moving into or out of the state, in order that such child may continue to 
71.6 	receive supervised aid from the state moved from until the child shall have resided for 
71.7 	one year in the state moved to;
71.8 	(7)(5) on or before October 1 in each even-numbered year make a biennial report 
71.9 	to the governor concerning the activities of the agency;
71.10 	(8)(6) enter into agreements with other departments of the state as necessary to meet 
71.11 	all requirements of the federal government; and
71.12 	(9)(7) cooperate with the commissioner of education to enforce the requirements 
71.13 	for program integrity and fraud prevention for investigation for child care assistance 
71.14 	under chapter 119B.
71.15 	(b) The state agency may:
71.16 	(1) subpoena witnesses and administer oaths, make rules, and take such action as 
71.17 	may be necessary or desirable for carrying out the provisions of Laws 1937, chapter 438. 
71.18 	All rules made by the state agency shall be binding on the counties and shall be complied 
71.19 	with by the respective county agencies;
71.20 	(2) cooperate with other state agencies in establishing reciprocal agreements in 
71.21 	instances where a child receiving Minnesota family investment program assistance moves 
71.22 	or contemplates moving into or out of the state, in order that the child may continue 
71.23 	to receive supervised aid from the state moved from until the child has resided for one 
71.24 	year in the state moved to; and
71.25 	(3) administer oaths and affirmations, take depositions, certify to official acts, and 
71.26 	issue subpoenas to compel the attendance of individuals and the production of documents 
71.27 	and other personal property necessary in connection with the administration of programs 
71.28 	administered by the Department of Human Services.
71.29 	(c) The fees for service of a subpoena in paragraph (b), clause (3), must be paid in 
71.30 	the same manner as prescribed by law for a service of process issued by a district court. 
71.31 	Witnesses must receive the same fees and mileage as in civil actions.
71.32 	(d) The subpoena in paragraph (b), clause (3), shall be enforceable through the 
71.33 	district court in the district where the subpoena is issued.

71.34 	Sec. 18. Minnesota Statutes 2006, section 256.01, is amended by adding a subdivision 
71.35 	to read:
72.1 		Subd. 23.Administrative simplification; county cost study.  (a) The commissioner 
72.2 	shall establish and convene the first meeting of an advisory committee to identify ways 
72.3 	to simplify and streamline human services laws and administrative requirements. The 
72.4 	advisory committee shall select its chair from its membership at the first meeting.
72.5 	(b) The committee shall consist of three senators appointed by the senate 
72.6 	Subcommittee on Committees of the Committee on Rules and Administration, three 
72.7 	state representatives appointed by the speaker of the house of representatives, and 
72.8 	nine department staff and county representatives appointed by the commissioner. The 
72.9 	appointments required under this paragraph must be completed by September 1, 2007.
72.10 	(c) The committee shall discuss methods of reducing inconsistency between 
72.11 	programs and complexity within programs in order to improve administrative efficiency 
72.12 	and reduce the risk of recipient noncompliance. Topics for discussion may include child 
72.13 	support enforcement, adoption services, child care licensing, child care assistance, and 
72.14 	other programs. The state senators and state representatives on the advisory committee, 
72.15 	in consultation with the advisory committee, shall report annually to the chairs of the 
72.16 	legislative committees and divisions with jurisdiction over the Department of Human 
72.17 	Services, beginning January 15, 2008, with recommendations developed by the advisory 
72.18 	group.
72.19 	(d) The commissioner, in consultation with the advisory committee, shall study 
72.20 	and report to the legislature by January 15, 2009, on the transfer of any responsibilities 
72.21 	between the department and counties that would result in more efficient and effective 
72.22 	administration of human services programs.
72.23 	(e) This section expires on June 30, 2012.

72.24 	Sec. 19. Minnesota Statutes 2006, section 256.015, subdivision 7, is amended to read:
72.25 		Subd. 7.Cooperation required. Upon the request of the Department of Human 
72.26 	Services, any state agency or third party payer shall cooperate with the department in 
72.27 	furnishing information to help establish a third party liability. Upon the request of the 
72.28 	Department of Human Services or county child support or human service agencies, any 
72.29 	employer or third party payer shall cooperate in furnishing information about group health 
72.30 	insurance plans or medical benefit plans available to its employees. For purposes of 
72.31 	section 176.191, subdivision 4, the Department of Labor and Industry may allow the 
72.32 	Department of Human Services and county agencies direct access and data matching on 
72.33 	information relating to workers' compensation claims in order to determine whether the 
72.34 	claimant has reported the fact of a pending claim and the amount paid to or on behalf of 
72.35 	the claimant to the Department of Human Services. The Department of Human Services 
73.1 	and county agencies shall limit its use of information gained from agencies, third party 
73.2 	payers, and employers to purposes directly connected with the administration of its public 
73.3 	assistance and child support programs. The provision of information by agencies, third 
73.4 	party payers, and employers to the department under this subdivision is not a violation of 
73.5 	any right of confidentiality or data privacy.

73.6 	Sec. 20. Minnesota Statutes 2006, section 256.017, subdivision 1, is amended to read:
73.7 		Subdivision 1.Authority and purpose. The commissioner shall administer a 
73.8 	compliance system for the Minnesota family investment program, the food stamp or food 
73.9 	support program, emergency assistance, general assistance, medical assistance, general 
73.10 	assistance medical care, emergency general assistance, Minnesota supplemental assistance, 
73.11 	preadmission screening, and alternative care grants, and the child care assistance program
73.12 	under the powers and authorities named in section 256.01, subdivision 2. The purpose of 
73.13 	the compliance system is to permit the commissioner to supervise the administration of 
73.14 	public assistance programs and to enforce timely and accurate distribution of benefits, 
73.15 	completeness of service and efficient and effective program management and operations, 
73.16 	to increase uniformity and consistency in the administration and delivery of public 
73.17 	assistance programs throughout the state, and to reduce the possibility of sanctions and 
73.18 	fiscal disallowances for noncompliance with federal regulations and state statutes. 
73.19 	The commissioner shall utilize training, technical assistance, and monitoring 
73.20 	activities, as specified in section 256.01, subdivision 2, to encourage county agency 
73.21 	compliance with written policies and procedures. 

73.22 	Sec. 21. Minnesota Statutes 2006, section 256.017, subdivision 9, is amended to read:
73.23 		Subd. 9.Timing and disposition of penalty and case disallowance funds. Quality 
73.24 	control case penalty and administrative penalty amounts shall be disallowed or withheld 
73.25 	from the next regular reimbursement made to the county agency for state and federal 
73.26 	benefit reimbursements and federal administrative reimbursements for all programs 
73.27 	covered in this section, according to procedures established in statute, but shall not be 
73.28 	imposed sooner than 30 calendar days from the date of written notice of such penalties. 
73.29 	Except for penalties withheld under the child care assistance program, all penalties 
73.30 	must be deposited in the county incentive fund provided in section 256.018. Penalties 
73.31 	withheld under the child care assistance program shall be reallocated to counties using the 
73.32 	allocation formula under section 119B.03, subdivision 5. All penalties must be imposed 
73.33 	according to this provision until a decision is made regarding the status of a written 
74.1 	exception. Penalties must be returned to county agencies when a review of a written 
74.2 	exception results in a decision in their favor. 

74.3 	Sec. 22. Minnesota Statutes 2006, section 256.984, subdivision 1, is amended to read:
74.4 		Subdivision 1.Declaration. Every application for public assistance under this 
74.5 	chapter or chapters 256B, 256D, 256J, and 256L; child care programs under chapter 119B; 
74.6 	and food stamps or food support under chapter 393 shall be in writing or reduced to 
74.7 	writing as prescribed by the state agency and shall contain the following declaration which 
74.8 	shall be signed by the applicant:
74.9 	"I declare under the penalties of perjury that this application has been examined 
74.10 	by me and to the best of my knowledge is a true and correct statement of every 
74.11 	material point. I understand that a person convicted of perjury may be sentenced 
74.12 	to imprisonment of not more than five years or to payment of a fine of not more 
74.13 	than $10,000, or both."

74.14 	Sec. 23. [256D.0516] EXPIRATION OF FOOD SUPPORT BENEFITS AND 
74.15 	REPORTING REQUIREMENTS.
74.16 		Subdivision 1.Expiration of food support benefits. Food support benefits shall 
74.17 	not be stored off line or expunged from a recipient's account unless the benefits have not 
74.18 	been accessed for 12 months after the month they were issued.
74.19 		Subd. 2.Food support reporting requirements. The commissioner of human 
74.20 	services shall implement simplified reporting as permitted under the Food Stamp Act of 
74.21 	1977, as amended, and the food stamp regulations in Code of Federal Regulations, title 
74.22 	7, part 273. Food support recipient households required to report periodically shall not 
74.23 	be required to report more often than one time every six months. This provision shall 
74.24 	not apply to households receiving food benefits under the Minnesota family investment 
74.25 	program waiver.

74.26 	EFFECTIVE DATE. Subdivision 1 is effective February 1, 2008, and subdivision 
74.27 	2 is effective May 1, 2008.

74.28 	Sec. 24. [256F.15] GRANT PROGRAM FOR CRISIS NURSERIES.
74.29 		Subdivision 1.Crisis nurseries. The commissioner of human services shall 
74.30 	establish a grant program to assist private and public agencies and organizations to 
74.31 	provide crisis nurseries to offer services and temporary care to families experiencing crisis 
74.32 	situations including children who are at high risk of abuse and neglect, children who have 
74.33 	been abused and neglected, and children who are in families receiving child protective 
75.1 	services. This service shall be provided without a fee for a maximum of 30 days in any 
75.2 	year. Crisis nurseries shall provide short-term case management, family support services, 
75.3 	parent education, crisis intervention, referrals, and resources, as needed.
75.4 	(a) The crisis nurseries must provide a spectrum of services that may include, but 
75.5 	are not limited to:
75.6 	(1) being available 24 hours a day, seven days a week;
75.7 	(2) providing services for children up to 72 hours at any one time;
75.8 	(3) providing short-term case management to bridge the gap between crisis and 
75.9 	successful living;
75.10 	(4) making referrals for parents to counseling services and other community 
75.11 	resources to help alleviate the underlying cause of the precipitating stress or crisis;
75.12 	(5) providing services without a fee for a maximum of 30 days in any year;
75.13 	(6) providing services to families with children from birth through 12 years of age, 
75.14 	as services are available;
75.15 	(7) providing an immediate response to family needs and strengths with an initial 
75.16 	assessment and intake interview, making referrals to appropriate agencies or programs, 
75.17 	and providing temporary care of children, as needed;
75.18 	(8) maintaining the clients' confidentiality to the extent required by law, and also 
75.19 	complying with statutory reporting requirements which may mandate a report to child 
75.20 	protective services;
75.21 	(9) providing a volunteer component and support for volunteers;
75.22 	(10) providing preservice training and ongoing training to providers and volunteers;
75.23 	(11) evaluating the services provided by documenting use of services, the result of 
75.24 	family referrals made to community resources, and how the services reduced the risk of 
75.25 	maltreatment;
75.26 	(12) providing developmental assessments;
75.27 	(13) providing medical assessments as determined by using a risk screening tool;
75.28 	(14) providing parent education classes or programs that include parent-child 
75.29 	interaction either on site or in collaboration with other community agencies; and
75.30 	(15) having a multidisciplinary advisory board which may include one or more 
75.31 	parents who have used the crisis nursery services.
75.32 	(b) The crisis nurseries are encouraged to provide opportunities for parents to 
75.33 	volunteer, if appropriate.
75.34 	(c) Parents shall retain custody of their children during placement in a crisis facility.
75.35 		Subd. 2.Fund distribution. In distributing funds, the commissioner shall give 
75.36 	priority consideration to agencies and organizations with experience in working with 
76.1 	abused or neglected children and their families, and with children at high risk of abuse and 
76.2 	neglect and their families, and serve communities which demonstrate the greatest need 
76.3 	for these services. Funds shall be distributed to crisis nurseries according to a formula 
76.4 	developed by the commissioner in consultation with the Minnesota Crisis Nursery 
76.5 	Association. The formula shall include funding for all existing crisis nursery programs 
76.6 	that have been previously funded through the Department of Human Services and that 
76.7 	meet program requirements as specified in subdivision 1, paragraph (a), and consideration 
76.8 	of factors reflecting the need for services in each service area, including but not limited to 
76.9 	the number of children 18 years of age and under living in the service area, the percent 
76.10 	of children 18 years of age and under living in poverty in the service area, and factors 
76.11 	reflecting the cost of providing services, including but not limited to the number of hours 
76.12 	of service provided in the previous year.

76.13 	Sec. 25. Minnesota Statutes 2006, section 256J.01, is amended by adding a subdivision 
76.14 	to read:
76.15 		Subd. 6.Legislative approval to move programs or activities. The commissioner 
76.16 	shall not move programs or activities funded with MFIP or TANF maintenance of effort 
76.17 	funds to other funding sources without legislative approval.

76.18 	Sec. 26. Minnesota Statutes 2006, section 256J.02, subdivision 1, is amended to read:
76.19 		Subdivision 1.Commissioner's authority to administer block grant funds. The 
76.20 	commissioner of human services is authorized to receive, administer, and expend funds 
76.21 	available under the TANF block grant authorized under title I of Public Law 104-193, the 
76.22 	Personal Responsibility and Work Opportunity Reconciliation Act of 1996, and under 
76.23 	Public Law 109-171, the Deficit Reduction Act of 2005.

76.24 	Sec. 27. Minnesota Statutes 2006, section 256J.02, subdivision 4, is amended to read:
76.25 		Subd. 4.Authority to transfer. Subject to limitations of title I of Public Law 
76.26 	104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, 
76.27 	as amended, and under Public Law 109-171, the Deficit Reduction Act of 2005, the 
76.28 	legislature may transfer money from the TANF block grant to the child care fund under 
76.29 	chapter 119B, or the Title XX block grant.

76.30 	Sec. 28. Minnesota Statutes 2006, section 256J.021, is amended to read:
76.31 	256J.021 SEPARATE STATE PROGRAM FOR USE OF STATE MONEY.
77.1 	(a) Until October 1,  2006, the commissioner of human services must treat MFIP 
77.2 	expenditures made to or on behalf of any minor child under section 256J.02, subdivision 
77.3 	2, clause (1), who is a resident of this state under section 256J.12, and who is part of a 
77.4 	two-parent eligible household as expenditures under a separately funded state program 
77.5 	and report those expenditures to the federal Department of Health and Human Services as 
77.6 	separate state program expenditures under Code of Federal Regulations, title 45, section 
77.7 	263.5. Families receiving assistance under this section shall comply with all applicable 
77.8 	requirements in this chapter.
77.9 	(b) Beginning October 1, 2006, the commissioner of human services must treat 
77.10 	MFIP expenditures made to or on behalf of any minor child under section 256J.02, 
77.11 	subdivision 2, clause (1), who is a resident of this state under section 256J.12, and who is 
77.12 	part of a two-parent eligible household, as expenditures under a separately funded state 
77.13 	program. These expenditures shall not count toward the state's maintenance of effort 
77.14 	(MOE) requirements under the federal Temporary Assistance to Needy Families (TANF) 
77.15 	program except if counting certain families would allow the commissioner to avoid a 
77.16 	federal penalty. Families receiving assistance under this section must comply with all 
77.17 	applicable requirements in this chapter.
77.18 	(c) Beginning July 1, 2007, the commissioner of human services shall treat MFIP 
77.19 	expenditures made to or on behalf of any minor child who is part of a household that meets 
77.20 	criteria in section 256J.575, subdivision 3, as expenditures under a separately funded state 
77.21 	program under section 256J.575, subdivision 8.

77.22 	Sec. 29. Minnesota Statutes 2006, section 256J.08, subdivision 65, is amended to read:
77.23 		Subd. 65.Participant. (a) "Participant" means includes any of the following:
77.24 	(1) a person who is currently receiving cash assistance or the food portion available 
77.25 	through MFIP. A person who fails to withdraw or access electronically any portion of the 
77.26 	person's cash and food assistance payment by the end of the payment month, who makes a 
77.27 	written request for closure before the first of a payment month and repays cash and food 
77.28 	assistance electronically issued for that payment month within that payment month, or 
77.29 	who returns any uncashed assistance check and food coupons and withdraws from the 
77.30 	program is not a participant.;
77.31 	(2) a person who withdraws a cash or food assistance payment by electronic transfer 
77.32 	or receives and cashes an MFIP assistance check or food coupons and is subsequently 
77.33 	determined to be ineligible for assistance for that period of time is a participant, regardless 
77.34 	whether that assistance is repaid. The term "participant" includes;
78.1 	(3) the caregiver relative and the minor child whose needs are included in the 
78.2 	assistance payment.;
78.3 	(4) a person in an assistance unit who does not receive a cash and food assistance 
78.4 	payment because the case has been suspended from MFIP is a participant.;
78.5 	(5) a person who receives cash payments under the diversionary work program 
78.6 	under section 256J.95 is a participant.; and
78.7 	(6) a person who receives cash payments under the family stabilization services 
78.8 	program under section 256J.575.
78.9 	(b) "Participant" does not include a person who fails to withdraw or access 
78.10 	electronically any portion of the person's cash and food assistance payment by the end of 
78.11 	the payment month, who makes a written request for closure before the first of a payment 
78.12 	month and repays cash and food assistance electronically issued for that payment month 
78.13 	within that payment month, or who returns any uncashed assistance check and food 
78.14 	coupons and withdraws from the program.

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

78.16 	Sec. 30. Minnesota Statutes 2006, section 256J.20, subdivision 3, is amended to read:
78.17 		Subd. 3.Other property limitations. To be eligible for MFIP, the equity value of 
78.18 	all nonexcluded real and personal property of the assistance unit must not exceed $2,000 
78.19 	for applicants and $5,000 for ongoing participants. The value of assets in clauses (1) to 
78.20 	(19) must be excluded when determining the equity value of real and personal property:
78.21 	(1) a licensed vehicle up to a loan value of less than or equal to $7,500. The county 
78.22 	agency shall apply any excess loan value as if it were equity value to the asset limit 
78.23 	described in this section. If the assistance unit owns more than one licensed vehicle, the 
78.24 	county agency shall determine the vehicle with the highest loan value and count only the 
78.25 	loan value over $7,500, the loan value of all additional vehicles and exclude the combined 
78.26 	loan value of less than or equal to $7,500. The county agency shall apply any excess loan 
78.27 	value as if it were equity value to the asset limit described in this section, excluding: (i) 
78.28 	the value of one vehicle per physically disabled person when the vehicle is needed to 
78.29 	transport the disabled unit member; this exclusion does not apply to mentally disabled 
78.30 	people; (ii) the value of special equipment for a disabled member of the assistance unit; 
78.31 	and (iii) any vehicle used for long-distance travel, other than daily commuting, for the 
78.32 	employment of a unit member.
78.33 	The county agency shall count the loan value of all other vehicles and apply this 
78.34 	amount as if it were equity value to the asset limit described in this section. To establish the 
78.35 	loan value of vehicles, a county agency must use the N.A.D.A. Official Used Car Guide, 
79.1 	Midwest Edition, for newer model cars. When a vehicle is not listed in the guidebook, 
79.2 	or when the applicant or participant disputes the loan value listed in the guidebook as 
79.3 	unreasonable given the condition of the particular vehicle, the county agency may require 
79.4 	the applicant or participant document the loan value by securing a written statement from 
79.5 	a motor vehicle dealer licensed under section 168.27, stating the amount that the dealer 
79.6 	would pay to purchase the vehicle. The county agency shall reimburse the applicant or 
79.7 	participant for the cost of a written statement that documents a lower loan value; 
79.8 	(2) the value of life insurance policies for members of the assistance unit;
79.9 	(3) one burial plot per member of an assistance unit;
79.10 	(4) the value of personal property needed to produce earned income, including 
79.11 	tools, implements, farm animals, inventory, business loans, business checking and 
79.12 	savings accounts used at least annually and used exclusively for the operation of a 
79.13 	self-employment business, and any motor vehicles if at least 50 percent of the vehicle's use 
79.14 	is to produce income and if the vehicles are essential for the self-employment business;
79.15 	(5) the value of personal property not otherwise specified which is commonly 
79.16 	used by household members in day-to-day living such as clothing, necessary household 
79.17 	furniture, equipment, and other basic maintenance items essential for daily living;
79.18 	(6) the value of real and personal property owned by a recipient of Supplemental 
79.19 	Security Income or Minnesota supplemental aid;
79.20 	(7) the value of corrective payments, but only for the month in which the payment 
79.21 	is received and for the following month;
79.22 	(8) a mobile home or other vehicle used by an applicant or participant as the 
79.23 	applicant's or participant's home;
79.24 	(9) money in a separate escrow account that is needed to pay real estate taxes or 
79.25 	insurance and that is used for this purpose;
79.26 	(10) money held in escrow to cover employee FICA, employee tax withholding, 
79.27 	sales tax withholding, employee worker compensation, business insurance, property rental, 
79.28 	property taxes, and other costs that are paid at least annually, but less often than monthly;
79.29 	(11) monthly assistance payments for the current month's or short-term emergency 
79.30 	needs under section 256J.626, subdivision 2; 
79.31 	(12) the value of school loans, grants, or scholarships for the period they are 
79.32 	intended to cover;
79.33 	(13) payments listed in section 256J.21, subdivision 2, clause (9), which are held 
79.34 	in escrow for a period not to exceed three months to replace or repair personal or real 
79.35 	property; 
79.36 	(14) income received in a budget month through the end of the payment month;
80.1 	(15) savings from earned income of a minor child or a minor parent that are set aside 
80.2 	in a separate account designated specifically for future education or employment costs;
80.3 	(16) the federal earned income credit, Minnesota working family credit, state and 
80.4 	federal income tax refunds, state homeowners and renters credits under chapter 290A, 
80.5 	property tax rebates and other federal or state tax rebates in the month received and the 
80.6 	following month;
80.7 	(17) payments excluded under federal law as long as those payments are held in a 
80.8 	separate account from any nonexcluded funds;
80.9 	(18) the assets of children ineligible to receive MFIP benefits because foster care or 
80.10 	adoption assistance payments are made on their behalf; and
80.11 	(19) the assets of persons whose income is excluded under section 256J.21, 
80.12 	subdivision 2, clause (43). 

80.13 	Sec. 31. Minnesota Statutes 2006, section 256J.21, subdivision 2, is amended to read:
80.14 		Subd. 2.Income exclusions. The following must be excluded in determining a 
80.15 	family's available income:
80.16 	(1) payments for basic care, difficulty of care, and clothing allowances received for 
80.17 	providing family foster care to children or adults under Minnesota Rules, parts 9555.5050 
80.18 	to 9555.6265, 9560.0521, and 9560.0650 to 9560.0655, and payments received and used 
80.19 	for care and maintenance of a third-party beneficiary who is not a household member;
80.20 	(2) reimbursements for employment training received through the Workforce 
80.21 	Investment Act of 1998, United States Code, title 20, chapter 73, section 9201;
80.22 	(3) reimbursement for out-of-pocket expenses incurred while performing volunteer 
80.23 	services, jury duty, employment, or informal carpooling arrangements directly related to 
80.24 	employment;
80.25 	(4) all educational assistance, except the county agency must count graduate student 
80.26 	teaching assistantships, fellowships, and other similar paid work as earned income and, 
80.27 	after allowing deductions for any unmet and necessary educational expenses, shall 
80.28 	count scholarships or grants awarded to graduate students that do not require teaching 
80.29 	or research as unearned income;
80.30 	(5) loans, regardless of purpose, from public or private lending institutions, 
80.31 	governmental lending institutions, or governmental agencies;
80.32 	(6) loans from private individuals, regardless of purpose, provided an applicant or 
80.33 	participant documents that the lender expects repayment;
80.34 	(7)(i) state income tax refunds; and
80.35 	(ii) federal income tax refunds;
81.1 	(8)(i) federal earned income credits;
81.2 	(ii) Minnesota working family credits;
81.3 	(iii) state homeowners and renters credits under chapter 290A; and
81.4 	(iv) federal or state tax rebates;
81.5 	(9) funds received for reimbursement, replacement, or rebate of personal or real 
81.6 	property when these payments are made by public agencies, awarded by a court, solicited 
81.7 	through public appeal, or made as a grant by a federal agency, state or local government, 
81.8 	or disaster assistance organizations, subsequent to a presidential declaration of disaster;
81.9 	(10) the portion of an insurance settlement that is used to pay medical, funeral, and 
81.10 	burial expenses, or to repair or replace insured property;
81.11 	(11) reimbursements for medical expenses that cannot be paid by medical assistance;
81.12 	(12) payments by a vocational rehabilitation program administered by the state 
81.13 	under chapter 268A, except those payments that are for current living expenses;
81.14 	(13) in-kind income, including any payments directly made by a third party to a 
81.15 	provider of goods and services;
81.16 	(14) assistance payments to correct underpayments, but only for the month in which 
81.17 	the payment is received;
81.18 	(15) payments for short-term emergency needs under section 256J.626, subdivision 
81.19 	2;
81.20 	(16) funeral and cemetery payments as provided by section 256.935;
81.21 	(17) nonrecurring cash gifts of $30 or less, not exceeding $30 per participant in 
81.22 	a calendar month;
81.23 	(18) any form of energy assistance payment made through Public Law 97-35, 
81.24 	Low-Income Home Energy Assistance Act of 1981, payments made directly to energy 
81.25 	providers by other public and private agencies, and any form of credit or rebate payment 
81.26 	issued by energy providers;
81.27 	(19) Supplemental Security Income (SSI), including retroactive SSI payments and 
81.28 	other income of an SSI recipient, except as described in section 256J.37, subdivision 3b;
81.29 	(20) Minnesota supplemental aid, including retroactive payments;
81.30 	(21) proceeds from the sale of real or personal property;
81.31 	(22) state adoption assistance payments under section 259.67, and up to an equal 
81.32 	amount of county adoption assistance payments;
81.33 	(23) state-funded family subsidy program payments made under section 252.32
81.34 	to help families care for children with developmental disabilities, consumer support 
81.35 	grant funds under section 256.476, and resources and services for a disabled household 
82.1 	member under one of the home and community-based waiver services programs under 
82.2 	chapter 256B;
82.3 	(24) interest payments and dividends from property that is not excluded from and 
82.4 	that does not exceed the asset limit;
82.5 	(25) rent rebates;
82.6 	(26) income earned by a minor caregiver, minor child through age 6, or a minor 
82.7 	child who is at least a half-time student in an approved elementary or secondary education 
82.8 	program;
82.9 	(27) income earned by a caregiver under age 20 who is at least a half-time student in 
82.10 	an approved elementary or secondary education program;
82.11 	(28) MFIP child care payments under section 119B.05;
82.12 	(29) all other payments made through MFIP to support a caregiver's pursuit of 
82.13 	greater economic stability;
82.14 	(30) income a participant receives related to shared living expenses;
82.15 	(31) reverse mortgages;
82.16 	(32) benefits provided by the Child Nutrition Act of 1966, United States Code, title 
82.17 	42, chapter 13A, sections 1771 to 1790;
82.18 	(33) benefits provided by the women, infants, and children (WIC) nutrition program, 
82.19 	United States Code, title 42, chapter 13A, section 1786;
82.20 	(34) benefits from the National School Lunch Act, United States Code, title 42, 
82.21 	chapter 13, sections 1751 to 1769e;
82.22 	(35) relocation assistance for displaced persons under the Uniform Relocation 
82.23 	Assistance and Real Property Acquisition Policies Act of 1970, United States Code, title 
82.24 	42, chapter 61, subchapter II, section 4636, or the National Housing Act, United States 
82.25 	Code, title 12, chapter 13, sections 1701 to 1750jj;
82.26 	(36) benefits from the Trade Act of 1974, United States Code, title 19, chapter 
82.27 	12, part 2, sections 2271 to 2322;
82.28 	(37) war reparations payments to Japanese Americans and Aleuts under United 
82.29 	States Code, title 50, sections 1989 to 1989d;
82.30 	(38) payments to veterans or their dependents as a result of legal settlements 
82.31 	regarding Agent Orange or other chemical exposure under Public Law 101-239, section 
82.32 	10405, paragraph (a)(2)(E);
82.33 	(39) income that is otherwise specifically excluded from MFIP consideration in 
82.34 	federal law, state law, or federal regulation;
82.35 	(40) security and utility deposit refunds;
83.1 	(41) American Indian tribal land settlements excluded under Public Laws 98-123, 
83.2 	98-124, and 99-377 to the Mississippi Band Chippewa Indians of White Earth, Leech 
83.3 	Lake, and Mille Lacs reservations and payments to members of the White Earth Band, 
83.4 	under United States Code, title 25, chapter 9, section 331, and chapter 16, section 1407;
83.5 	(42) all income of the minor parent's parents and stepparents when determining the 
83.6 	grant for the minor parent in households that include a minor parent living with parents or 
83.7 	stepparents on MFIP with other children;
83.8 	(43) income of the minor parent's parents and stepparents equal to 200 percent of the 
83.9 	federal poverty guideline for a family size not including the minor parent and the minor 
83.10 	parent's child in households that include a minor parent living with parents or stepparents 
83.11 	not on MFIP when determining the grant for the minor parent. The remainder of income is 
83.12 	deemed as specified in section 256J.37, subdivision 1b;
83.13 	(44) payments made to children eligible for relative custody assistance under section 
83.14 	257.85;
83.15 	(45) vendor payments for goods and services made on behalf of a client unless the 
83.16 	client has the option of receiving the payment in cash; and
83.17 	(46) the principal portion of a contract for deed payment.; and
83.18 	(47) cash payments to individuals enrolled for full-time service as a volunteer under 
83.19 	AmeriCorps programs including AmeriCorps VISTA, AmeriCorps State, AmeriCorps 
83.20 	National, and AmeriCorps NCCC.

83.21 	Sec. 32. Minnesota Statutes 2006, section 256J.32, subdivision 6, is amended to read:
83.22 		Subd. 6.Recertification. The county agency shall recertify eligibility in an annual 
83.23 	face-to-face interview with the participant and verify the following:
83.24 	(1) presence of the minor child in the home, if questionable;
83.25 	(2) income, unless excluded, including self-employment expenses used as a 
83.26 	deduction or deposits or withdrawals from business accounts;
83.27 	(3) assets when the value is within $200 of the asset limit;
83.28 	(4) information to establish an exception under section 256J.24, subdivision 9, 
83.29 	if questionable; and
83.30 	(5) inconsistent information, if related to eligibility; and
83.31 	(6) whether a single caregiver household meets requirements in section 256J.575, 
83.32 	subdivision 3.

83.33 	Sec. 33. Minnesota Statutes 2006, section 256J.37, subdivision 3a, is amended to read:
84.1 		Subd. 3a.Rental subsidies; unearned income. (a) Effective July 1, 2003, the 
84.2 	county agency shall count $50 $25 of the value of public and assisted rental subsidies 
84.3 	provided through the Department of Housing and Urban Development (HUD) as unearned 
84.4 	income to the cash portion of the MFIP grant. The full amount of the subsidy must be 
84.5 	counted as unearned income when the subsidy is less than $50 $25. The income from this 
84.6 	subsidy shall be budgeted according to section 256J.34. 
84.7 	(b) The provisions of this subdivision shall not apply to an MFIP assistance unit 
84.8 	which includes a participant who is:
84.9 	(1) age 60 or older;
84.10 	(2) a caregiver who is suffering from an illness, injury, or incapacity that has been 
84.11 	certified by a qualified professional when the illness, injury, or incapacity is expected 
84.12 	to continue for more than 30 days and prevents the person from obtaining or retaining 
84.13 	employment; or
84.14 	(3) a caregiver whose presence in the home is required due to the illness or 
84.15 	incapacity of another member in the assistance unit, a relative in the household, or a foster 
84.16 	child in the household when the illness or incapacity and the need for the participant's 
84.17 	presence in the home has been certified by a qualified professional and is expected to 
84.18 	continue for more than 30 days.
84.19 	(c) The provisions of this subdivision shall not apply to an MFIP assistance unit 
84.20 	where the parental caregiver is an SSI recipient.
84.21 	(d) Prior to implementing this provision, the commissioner must identify the MFIP 
84.22 	participants subject to this provision and provide written notice to these participants at 
84.23 	least 30 days before the first grant reduction. The notice must inform the participant of the 
84.24 	basis for the potential grant reduction, the exceptions to the provision, if any, and inform 
84.25 	the participant of the steps necessary to claim an exception. A person who is found not to 
84.26 	meet one of the exceptions to the provision must be notified and informed of the right to a 
84.27 	fair hearing under section 256J.40. The notice must also inform the participant that the 
84.28 	participant may be eligible for a rent reduction resulting from a reduction in the MFIP 
84.29 	grant and encourage the participant to contact the local housing authority. 

84.30 	Sec. 34. Minnesota Statutes 2006, section 256J.42, subdivision 1, is amended to read:
84.31 		Subdivision 1.Time limit. (a) Except as otherwise provided for in this section, an 
84.32 	assistance unit in which any adult caregiver has received 60 months of cash assistance 
84.33 	funded in whole or in part by the TANF block grant in this or any other state or 
84.34 	United States territory, or from a tribal TANF program, MFIP, the AFDC program 
84.35 	formerly codified in sections 256.72 to 256.87, or the family general assistance program 
85.1 	formerly codified in sections 256D.01 to 256D.23, funded in whole or in part by state 
85.2 	appropriations, is ineligible to receive MFIP. Any cash assistance funded with TANF 
85.3 	dollars in this or any other state or United States territory, or from a tribal TANF program, 
85.4 	or MFIP assistance funded in whole or in part by state appropriations, that was received 
85.5 	by the unit on or after the date TANF was implemented, including any assistance received 
85.6 	in states or United States territories of prior residence, counts toward the 60-month 
85.7 	limitation. Months during which any cash assistance is received by an assistance unit 
85.8 	with a mandatory member who is disqualified for wrongfully obtaining public assistance 
85.9 	under section 256.98, subdivision 8, counts toward the time limit for the disqualified 
85.10 	member. The 60-month limit applies to a minor caregiver except under subdivision 5. The 
85.11 	60-month time period does not need to be consecutive months for this provision to apply. 
85.12 	(b) The months before July 1998 in which individuals received assistance as part of 
85.13 	the field trials as an MFIP, MFIP-R, or MFIP or MFIP-R comparison group family are 
85.14 	not included in the 60-month time limit.

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

85.16 	Sec. 35. Minnesota Statutes 2006, section 256J.46, is amended by adding a subdivision 
85.17 	to read:
85.18 		Subd. 3.Restrictions on sanctions. A participant shall not be sanctioned for 
85.19 	failure to meet the agreed upon hours in a participant's employment plan under section 
85.20 	256J.521, subdivision 2, when the participant fails to meet the agreed upon hours of 
85.21 	participation in paid employment because the participant is not eligible for holiday pay 
85.22 	and the participant's place of employment is closed for a holiday.

85.23 	Sec. 36. Minnesota Statutes 2006, section 256J.49, subdivision 13, is amended to read:
85.24 		Subd. 13.Work activity. "Work activity" means any activity in a participant's 
85.25 	approved employment plan that leads to employment. For purposes of the MFIP program, 
85.26 	this includes activities that meet the definition of work activity under the participation 
85.27 	requirements of TANF. Work activity includes:
85.28 	(1) unsubsidized employment, including work study and paid apprenticeships or 
85.29 	internships;
85.30 	(2) subsidized private sector or public sector employment, including grant diversion 
85.31 	as specified in section 256J.69, on-the-job training as specified in section 256J.66, 
85.32 	the self-employment investment demonstration program (SEID) as specified in section 
85.33 	256J.65, paid work experience, and supported work when a wage subsidy is provided; 
86.1 	(3) unpaid work experience, including community service, volunteer work, 
86.2 	the community work experience program as specified in section 256J.67, unpaid 
86.3 	apprenticeships or internships, and supported work when a wage subsidy is not provided. 
86.4 	Unpaid work performed in return for cash assistance is prohibited and does not count 
86.5 	as a work activity, unless the participant voluntarily agrees, in writing, to engage in 
86.6 	unpaid work in return for cash assistance. The participant may terminate the unpaid 
86.7 	work arrangement, in writing, at any time;
86.8 	(4) job search including job readiness assistance, job clubs, job placement, 
86.9 	job-related counseling, and job retention services;
86.10 	(5) job readiness education, including English as a second language (ESL) or 
86.11 	functional work literacy classes as limited by the provisions of section 256J.531, 
86.12 	subdivision 2, general educational development (GED) course work, high school 
86.13 	completion, and adult basic education as limited by the provisions of section 256J.531, 
86.14 	subdivision 1; 
86.15 	(6) job skills training directly related to employment, including education and 
86.16 	training that can reasonably be expected to lead to employment, as limited by the 
86.17 	provisions of section 256J.53; 
86.18 	(7) providing child care services to a participant who is working in a community 
86.19 	service program;
86.20 	(8) activities included in the employment plan that is developed under section 
86.21 	256J.521, subdivision 3; and 
86.22 	(9) preemployment activities including chemical and mental health assessments, 
86.23 	treatment, and services; learning disabilities services; child protective services; family 
86.24 	stabilization services; or other programs designed to enhance employability.

86.25 	Sec. 37. Minnesota Statutes 2006, section 256J.521, subdivision 1, is amended to read:
86.26 		Subdivision 1.Assessments. (a) For purposes of MFIP employment services, 
86.27 	assessment is a continuing process of gathering information related to employability 
86.28 	for the purpose of identifying both participant's strengths and strategies for coping with 
86.29 	issues that interfere with employment. The job counselor must use information from the 
86.30 	assessment process to develop and update the employment plan under subdivision 2 or 3, 
86.31 	as appropriate, and to determine whether the participant qualifies for a family violence 
86.32 	waiver including an employment plan under subdivision 3, and to determine whether the 
86.33 	participant should be referred to the family stabilization services program under section 
86.34 	256J.575.
86.35 	(b) The scope of assessment must cover at least the following areas:
87.1 	(1) basic information about the participant's ability to obtain and retain employment, 
87.2 	including: a review of the participant's education level; interests, skills, and abilities; prior 
87.3 	employment or work experience; transferable work skills; child care and transportation 
87.4 	needs;
87.5 	(2) identification of personal and family circumstances that impact the participant's 
87.6 	ability to obtain and retain employment, including: any special needs of the children, the 
87.7 	level of English proficiency, family violence issues, and any involvement with social 
87.8 	services or the legal system;
87.9 	(3) the results of a mental and chemical health screening tool designed by the 
87.10 	commissioner and results of the brief screening tool for special learning needs. Screening 
87.11 	tools for mental and chemical health and special learning needs must be approved by the 
87.12 	commissioner and may only be administered by job counselors or county staff trained in 
87.13 	using such screening tools. The commissioner shall work with county agencies to develop 
87.14 	protocols for referrals and follow-up actions after screens are administered to participants, 
87.15 	including guidance on how employment plans may be modified based upon outcomes 
87.16 	of certain screens. Participants must be told of the purpose of the screens and how the 
87.17 	information will be used to assist the participant in identifying and overcoming barriers to 
87.18 	employment. Screening for mental and chemical health and special learning needs must 
87.19 	be completed by participants who are unable to find suitable employment after six weeks 
87.20 	of job search under subdivision 2, paragraph (b), and participants who are determined to 
87.21 	have barriers to employment under subdivision 2, paragraph (d). Failure to complete the 
87.22 	screens will result in sanction under section 256J.46; and 
87.23 	(4) a comprehensive review of participation and progress for participants who have 
87.24 	received MFIP assistance and have not worked in unsubsidized employment during the 
87.25 	past 12 months. The purpose of the review is to determine the need for additional services 
87.26 	and supports, including placement in subsidized employment or unpaid work experience 
87.27 	under section 256J.49, subdivision 13, or referral to the family stabilization services 
87.28 	program under section 256J.575. 
87.29 	(c) Information gathered during a caregiver's participation in the diversionary work 
87.30 	program under section 256J.95 must be incorporated into the assessment process. 
87.31 	(d) The job counselor may require the participant to complete a professional chemical 
87.32 	use assessment to be performed according to the rules adopted under section 254A.03, 
87.33 	subdivision 3, including provisions in the administrative rules which recognize the cultural 
87.34 	background of the participant, or a professional psychological assessment as a component 
87.35 	of the assessment process, when the job counselor has a reasonable belief, based on 
87.36 	objective evidence, that a participant's ability to obtain and retain suitable employment 
88.1 	is impaired by a medical condition. The job counselor may assist the participant with 
88.2 	arranging services, including child care assistance and transportation, necessary to meet 
88.3 	needs identified by the assessment. Data gathered as part of a professional assessment 
88.4 	must be classified and disclosed according to the provisions in section 13.46.

88.5 	Sec. 38. Minnesota Statutes 2006, section 256J.521, subdivision 2, is amended to read:
88.6 		Subd. 2.Employment plan; contents. (a) Based on the assessment under 
88.7 	subdivision 1, the job counselor and the participant must develop an employment plan 
88.8 	that includes participation in activities and hours that meet the requirements of section 
88.9 	256J.55, subdivision 1. The purpose of the employment plan is to identify for each 
88.10 	participant the most direct path to unsubsidized employment and any subsequent steps that 
88.11 	support long-term economic stability. The employment plan should be developed using 
88.12 	the highest level of activity appropriate for the participant. Activities must be chosen from 
88.13 	clauses (1) to (6), which are listed in order of preference. Notwithstanding this order of 
88.14 	preference for activities, priority must be given for activities related to a family violence 
88.15 	waiver when developing the employment plan. The employment plan must also list the 
88.16 	specific steps the participant will take to obtain employment, including steps necessary 
88.17 	for the participant to progress from one level of activity to another, and a timetable for 
88.18 	completion of each step. Levels of activity include:
88.19 	(1) unsubsidized employment;
88.20 	(2) job search;
88.21 	(3) subsidized employment or unpaid work experience;
88.22 	(4) unsubsidized employment and job readiness education or job skills training;
88.23 	(5) unsubsidized employment or unpaid work experience and activities related to 
88.24 	a family violence waiver or preemployment needs; and
88.25 	(6) activities related to a family violence waiver or preemployment needs.
88.26 	(b) Participants who are determined to possess sufficient skills such that the 
88.27 	participant is likely to succeed in obtaining unsubsidized employment must job search at 
88.28 	least 30 hours per week for up to six weeks and accept any offer of suitable employment. 
88.29 	The remaining hours necessary to meet the requirements of section 256J.55, subdivision 
88.30 	1, may be met through participation in other work activities under section 256J.49, 
88.31 	subdivision 13. The participant's employment plan must specify, at a minimum: (1) 
88.32 	whether the job search is supervised or unsupervised; (2) support services that will 
88.33 	be provided; and (3) how frequently the participant must report to the job counselor. 
88.34 	Participants who are unable to find suitable employment after six weeks must meet 
88.35 	with the job counselor to determine whether other activities in paragraph (a) should be 
89.1 	incorporated into the employment plan. Job search activities which are continued after six 
89.2 	weeks must be structured and supervised. 
89.3 	(c) Beginning July 1, 2004, activities and hourly requirements in the employment 
89.4 	plan may be adjusted as necessary to accommodate the personal and family circumstances 
89.5 	of participants identified under section 256J.561, subdivision 2, paragraph (d). Participants 
89.6 	who no longer meet the provisions of section 256J.561, subdivision 2, paragraph (d), 
89.7 	must meet with the job counselor within ten days of the determination to revise the 
89.8 	employment plan. 
89.9 	(d) Participants who are determined to have barriers to obtaining or retaining 
89.10 	employment that will not be overcome during six weeks of job search under paragraph (b) 
89.11 	must work with the job counselor to develop an employment plan that addresses those 
89.12 	barriers by incorporating appropriate activities from paragraph (a), clauses (1) to (6). 
89.13 	The employment plan must include enough hours to meet the participation requirements 
89.14 	in section 256J.55, subdivision 1, unless a compelling reason to require fewer hours 
89.15 	is noted in the participant's file. 
89.16 	(e) The job counselor and the participant must sign the employment plan to indicate 
89.17 	agreement on the contents.
89.18 	(f) Except as provided under paragraph (g), failure to develop or comply with 
89.19 	activities in the plan, or voluntarily quitting suitable employment without good cause, 
89.20 	will result in the imposition of a sanction under section 256J.46. The job counselor 
89.21 	is encouraged to allow participants who are participating in at least 20 hours of work 
89.22 	activities to also participate in employment and training activities in order to meet the 
89.23 	federal hourly participation rates.
89.24 	(g) When a participant fails to meet the agreed upon hours of participation in paid 
89.25 	employment because the participant is not eligible for holiday pay and the participant's 
89.26 	place of employment is closed for a holiday, the job counselor shall not impose a sanction 
89.27 	or increase the hours of participation in any other activity, including paid employment, to 
89.28 	offset the hours that were missed due to the holiday.
89.29 	(f) (h) Except as provided under paragraph (g), employment plans must be reviewed 
89.30 	at least every three months to determine whether activities and hourly requirements should 
89.31 	be revised. The job counselor is encouraged to allow participants who are participating in 
89.32 	at least 20 hours of work activities to also participate in education and training activities in 
89.33 	order to meet the federal hourly participations rates.

89.34 	Sec. 39. Minnesota Statutes 2006, section 256J.53, subdivision 2, is amended to read:
90.1 		Subd. 2.Approval of postsecondary education or training. (a) In order for a 
90.2 	postsecondary education or training program to be an approved activity in an employment 
90.3 	plan, the participant must be working in unsubsidized employment at least 20 hours per 
90.4 	week. plan must include additional work activities if the education and training activities 
90.5 	do not meet the minimum hours required to meet the federal work participation rate under 
90.6 	Code of Federal Regulations, title 45, sections 261.31 and 261.35.
90.7 	(b) Participants seeking approval of a postsecondary education or training plan 
90.8 	must provide documentation that:
90.9 	(1) the employment goal can only be met with the additional education or training;
90.10 	(2) there are suitable employment opportunities that require the specific education or 
90.11 	training in the area in which the participant resides or is willing to reside;
90.12 	(3) the education or training will result in significantly higher wages for the 
90.13 	participant than the participant could earn without the education or training;
90.14 	(4) the participant can meet the requirements for admission into the program; and
90.15 	(5) there is a reasonable expectation that the participant will complete the training 
90.16 	program based on such factors as the participant's MFIP assessment, previous education, 
90.17 	training, and work history; current motivation; and changes in previous circumstances.
90.18 	(c) The hourly unsubsidized employment requirement does not apply for intensive 
90.19 	education or training programs lasting 12 weeks or less when full-time attendance is 
90.20 	required.
90.21 	(d) Participants with an approved employment plan in place on July 1, 2003, which 
90.22 	includes more than 12 months of postsecondary education or training shall be allowed to 
90.23 	complete that plan provided that hourly requirements in section 256J.55, subdivision 1, 
90.24 	and conditions specified in paragraph (b), and subdivisions 3 and 5 are met. A participant 
90.25 	whose case is subsequently closed for three months or less for reasons other than 
90.26 	noncompliance with program requirements and who returns to MFIP shall be allowed to 
90.27 	complete that plan provided that hourly requirements in section 256J.55, subdivision 1, 
90.28 	and conditions specified in paragraph (b) and subdivisions 3 and 5 are met.

90.29 	Sec. 40. Minnesota Statutes 2006, section 256J.55, subdivision 1, is amended to read:
90.30 		Subdivision 1.Participation requirements. (a) All caregivers must participate 
90.31 	in employment services under sections 256J.515 to 256J.57 concurrent with receipt of 
90.32 	MFIP assistance. 
90.33 	(b) Until July 1, 2004, participants who meet the requirements of section 256J.56 are 
90.34 	exempt from participation requirements.
91.1 	(c) Participants under paragraph (a) must develop and comply with an employment 
91.2 	plan under section 256J.521 or section 256J.54 in the case of a participant under the age of 
91.3 	20 who has not obtained a high school diploma or its equivalent.
91.4 	(d) With the exception of participants under the age of 20 who must meet the 
91.5 	education requirements of section 256J.54, all participants must meet the hourly 
91.6 	participation requirements of TANF or the hourly requirements listed in clauses (1) to 
91.7 	(3), whichever is higher.
91.8 	(1) In single-parent families with no children under six years of age, the job 
91.9 	counselor and the caregiver must develop an employment plan that includes 30 to 35 hours 
91.10 	per week of work activities 130 hours per month of work activities.
91.11 	(2) In single-parent families with a child under six years of age, the job counselor 
91.12 	and the caregiver must develop an employment plan that includes 20 to 35 hours per week 
91.13 	of work activities 87 hours per month of work activities.
91.14 	(3) In two-parent families, the job counselor and the caregivers must develop 
91.15 	employment plans which result in a combined total of at least 55 hours per week of work 
91.16 	activities.
91.17 	(e) Failure to participate in employment services, including the requirement to 
91.18 	develop and comply with an employment plan, including hourly requirements, without 
91.19 	good cause under section 256J.57, shall result in the imposition of a sanction under section 
91.20 	256J.46.

91.21 	Sec. 41. [256J.575] FAMILY STABILIZATION SERVICES.
91.22 		Subdivision 1.Purpose. (a) The family stabilization services serve families who are 
91.23 	not making significant progress within the Minnesota family investment program (MFIP) 
91.24 	due to a variety of barriers to employment.
91.25 	(b) The goal of the services is to stabilize and improve the lives of families at risk 
91.26 	of long-term welfare dependency or family instability due to employment barriers such 
91.27 	as physical disability, mental disability, age, or providing care for a disabled household 
91.28 	member. These services promote and support families to achieve the greatest possible 
91.29 	degree of self-sufficiency.
91.30 		Subd. 2.Definitions. The terms used in this section have the meanings given them 
91.31 	in paragraphs (a) to (d).
91.32 	(a) "Case manager" means the county-designated staff person or employment 
91.33 	services counselor.
91.34 	(b) "Case management" means the services provided by or through the county 
91.35 	agency or through the employment services agency to participating families, including 
92.1 	assessment, information, referrals, and assistance in the preparation and implementation 
92.2 	of a family stabilization plan under subdivision 5.
92.3 	(c) "Family stabilization plan" means a plan developed by a case manager and 
92.4 	the participant, which identifies the participant's most appropriate path to unsubsidized 
92.5 	employment, family stability, and barrier reduction, taking into account the family's 
92.6 	circumstances.
92.7 	(d) "Family stabilization services" means programs, activities, and services in this 
92.8 	section that provide participants and their family members with assistance regarding, 
92.9 	but not limited to:
92.10 	(1) obtaining and retaining unsubsidized employment;
92.11 	(2) family stability;
92.12 	(3) economic stability; and
92.13 	(4) barrier reduction.
92.14 	The goal of the services is to achieve the greatest degree of economic self-sufficiency 
92.15 	and family well-being possible for the family under the circumstances.
92.16 		Subd. 3.Eligibility. (a) The following MFIP or diversionary work program (DWP) 
92.17 	participants are eligible for the services under this section:
92.18 	(1) a participant who meets the requirements for or has been granted a hardship 
92.19 	extension under section 256J.425, subdivision 2 or 3, except that it is not necessary for 
92.20 	the participant to have reached or be approaching 60 months of eligibility for this section 
92.21 	to apply;
92.22 	(2) a participant who is applying for supplemental security income or Social Security 
92.23 	disability insurance; and
92.24 	(3) a participant who is a noncitizen who has been in the United States for 12 or 
92.25 	fewer months.
92.26 	(b) Families must meet all other eligibility requirements for MFIP established in 
92.27 	this chapter. Families are eligible for financial assistance to the same extent as if they 
92.28 	were participating in MFIP.
92.29 	(c) A participant under paragraph (a), clause (5), must be provided with English as a 
92.30 	second language opportunities and skills training for up to 12 months. After 12 months, 
92.31 	the case manager and participant must determine whether the participant should continue 
92.32 	with English as a second language classes or skills training, or both, or if the participant 
92.33 	should become an MFIP participant.
92.34 		Subd. 4.Universal participation. All caregivers must participate in family 
92.35 	stabilization services as defined in subdivision 2.
93.1 		Subd. 5.Case management; family stabilization plans; coordinated services.
 93.2 	(a) The county agency or employment services provider shall provide family stabilization 
93.3 	services to families through a case management model. A case manager shall be assigned 
93.4 	to each participating family within 30 days after the family begins to receive financial 
93.5 	assistance as a participant of the family stabilization services. The case manager, with 
93.6 	the full involvement of the participant, shall recommend, and the county agency shall 
93.7 	establish and modify as necessary, a family stabilization plan for each participating family. 
93.8 	If a participant is already assigned to a county case manager or a county-designated case 
93.9 	manager in social services, disability services, or housing services that case manager 
93.10 	already assigned may be the case manager for purposes of these services.
93.11 	(b) The family stabilization plan must include:
93.12 	(1) each participant's plan for long-term self-sufficiency, including an employment 
93.13 	goal where applicable;
93.14 	(2) an assessment of each participant's strengths and barriers, and any special 
93.15 	circumstances of the participant's family that impact, or are likely to impact, the 
93.16 	participant's progress towards the goals in the plan; and
93.17 	(3) an identification of the services, supports, education, training, and 
93.18 	accommodations needed to reduce or overcome any barriers to enable the family to 
93.19 	achieve self-sufficiency and to fulfill each caregiver's personal and family responsibilities.
93.20 	(c) The case manager and the participant shall meet within 30 days of the family's 
93.21 	referral to the case manager. The initial family stabilization plan must be completed within 
93.22 	30 days of the first meeting with the case manager. The case manager shall establish a 
93.23 	schedule for periodic review of the family stabilization plan that includes personal contact 
93.24 	with the participant at least once per month. In addition, the case manager shall review 
93.25 	and, if necessary, modify the plan under the following circumstances:
93.26 	(1) there is a lack of satisfactory progress in achieving the goals of the plan;
93.27 	(2) the participant has lost unsubsidized or subsidized employment;
93.28 	(3) a family member has failed or is unable to comply with a family stabilization 
93.29 	plan requirement;
93.30 	(4) services, supports, or other activities required by the plan are unavailable;
93.31 	(5) changes to the plan are needed to promote the well-being of the children; or
93.32 	(6) the participant and case manager determine that the plan is no longer appropriate 
93.33 	for any other reason.
93.34 		Subd. 6.Cooperation with services requirements. (a) To be eligible, a participant 
93.35 	shall comply with paragraphs (b) to (d).
94.1 	(b) Participants shall engage in family stabilization plan services for the appropriate 
94.2 	number of hours per week that the activities are scheduled and available, unless good 
94.3 	cause exists for not doing so, as defined in section 256J.57, subdivision 1. The appropriate 
94.4 	number of hours must be based on the participant's plan.
94.5 	(c) The case manager shall review the participant's progress toward the goals in the 
94.6 	family stabilization plan every six months to determine whether conditions have changed, 
94.7 	including whether revisions to the plan are needed.
94.8 	(d) A participant's requirement to comply with any or all family stabilization plan 
94.9 	requirements under this subdivision is excused when the case management services, 
94.10 	training and educational services, and family support services identified in the participant's 
94.11 	family stabilization plan are unavailable for reasons beyond the control of the participant, 
94.12 	including when money appropriated is not sufficient to provide the services.
94.13 		Subd. 7.Sanctions. (a) The financial assistance grant of a participating family is 
94.14 	reduced according to section 256J.46, if a participating adult fails without good cause to 
94.15 	comply or continue to comply with the family stabilization plan requirements in this 
94.16 	subdivision, unless compliance has been excused under subdivision 6, paragraph (e).
94.17 	(b) Given the purpose of the family stabilization services  in this section and the 
94.18 	nature of the underlying family circumstances that act as barriers to both employment and 
94.19 	full compliance with program requirements, sanctions are appropriate only when it is clear 
94.20 	that there is both the ability to comply and willful noncompliance by the participant, as 
94.21 	confirmed by a behavioral health or medical professional.
94.22 	(c) Prior to the imposition of a sanction, the county agency or employment services 
94.23 	provider shall review the participant's case to determine if the family stabilization plan 
94.24 	is still appropriate and meet with the participant face-to-face. The participant may bring 
94.25 	an advocate to the face-to-face meeting. 
94.26 	During the face-to-face meeting, the county agency shall:
94.27 	(1) determine whether the continued noncompliance can be explained and mitigated 
94.28 	by providing a needed family stabilization service, as defined in subdivision 2, paragraph 
94.29 	(d);
94.30 	(2) determine whether the participant qualifies for a good cause exception under 
94.31 	section 256J.57, or if the sanction is for noncooperation with child support requirements, 
94.32 	determine if the participant qualifies for a good cause exemption under section 256.741, 
94.33 	subdivision 10;
94.34 	(3) determine whether activities in the family stabilization plan are appropriate 
94.35 	based on the family's circumstances;
94.36 	(4) explain the consequences of continuing noncompliance;
95.1 	(5) identify other resources that may be available to the participant to meet the 
95.2 	needs of the family; and
95.3 	(6) inform the participant of the right to appeal under section 256J.40.
95.4 	If the lack of an identified activity or service can explain the noncompliance, the 
95.5 	county shall work with the participant to provide the identified activity.
95.6 	(d) If the participant fails to come to the face-to-face meeting, the case manager or a 
95.7 	designee shall attempt at least one home visit. If a face-to-face meeting is not conducted, 
95.8 	the county agency shall send the participant a written notice that includes the information 
95.9 	under paragraph (c).
95.10 	(e) After the requirements of paragraphs (c) and (d) are met and prior to imposition 
95.11 	of a sanction, the county agency shall provide a notice of intent to sanction under section 
95.12 	256J.57, subdivision 2, and, when applicable, a notice of adverse action under section 
95.13 	256J.31.
95.14 	(f) Section 256J.57 applies to this section except to the extent that it is modified 
95.15 	by this subdivision.
95.16 		Subd. 8.Funding. (a) The commissioner of human services shall treat MFIP 
95.17 	expenditures made to or on behalf of any minor child under this section, who is part of a 
95.18 	household that meets criteria in subdivision 3, as expenditures under a separately funded 
95.19 	state program. These expenditures shall not count toward the state's maintenance of effort 
95.20 	requirements under the federal TANF program.
95.21 	(b) A family is no longer part of a separately funded program under this section if 
95.22 	the caregiver no longer meets the criteria for family stabilization services in subdivision 
95.23 	3, or if it is determined at recertification that the caregiver is meeting the federal work 
95.24 	participation rate, whichever occurs sooner.

95.25 	Sec. 42. [256J.621] WORK PARTICIPATION BONUS.
95.26 	(a) Upon exiting the diversionary work program (DWP) or upon terminating 
95.27 	MFIP cash assistance with earnings, a participant who is employed may be eligible for 
95.28 	transitional assistance of $100 per month to assist in meeting the family's basic needs as 
95.29 	the participant continues to move toward self-sufficiency.
95.30 	(b) To be eligible for a transitional assistance payment, the participant shall not 
95.31 	receive MFIP cash assistance or diversionary work program assistance during the month 
95.32 	and the participant or participants must meet the following work requirements:
95.33 	(1) if the participant is a single caregiver and has a child under six years of age, the 
95.34 	participant must be employed at least 87 hours per month;
96.1 	(2) if the participant is a single caregiver and does not have a child under six years of 
96.2 	age, the participant must be employed at least 130 hours per month; or
96.3 	(3) if the household is a two-parent family, at least one of the parents must be 
96.4 	employed an average of at least 130 hours per month.
96.5 	Whenever a participant exits the diversionary work program or is terminated from 
96.6 	MFIP cash assistance and meets the other criteria in this section, transitional assistance is 
96.7 	available for up to 24 consecutive months.
96.8 	(c) Expenditures on the program are maintenance of effort state funds for participants 
96.9 	under paragraph (b), clauses (1) and (2). Expenditures for participants under paragraph 
96.10 	(b), clause (3), are nonmaintenance of effort funds. Months in which a participant 
96.11 	receives transitional assistance under this section do not count toward the participant's 
96.12 	MFIP 60-month time limit.

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

96.14 	Sec. 43. Minnesota Statutes 2006, section 256J.626, subdivision 1, is amended to read:
96.15 		Subdivision 1.Consolidated fund. The consolidated fund is established to support 
96.16 	counties and tribes in meeting their duties under this chapter. Counties and tribes must use 
96.17 	funds from the consolidated fund to develop programs and services that are designed to 
96.18 	improve participant outcomes as measured in section 256J.751, subdivision 2. Counties 
96.19 	may use the funds for any allowable expenditures under subdivision 2, including case 
96.20 	management. Tribes may use the funds for any allowable expenditures under subdivision 
96.21 	2, including case management, except those in subdivision 2, paragraph (a), clauses (1) 
96.22 	and (6). 

96.23 	Sec. 44. Minnesota Statutes 2006, section 256J.626, subdivision 2, is amended to read:
96.24 		Subd. 2.Allowable expenditures. (a) The commissioner must restrict expenditures 
96.25 	under the consolidated fund to benefits and services allowed under title IV-A of the federal 
96.26 	Social Security Act. Allowable expenditures under the consolidated fund may include, but 
96.27 	are not limited to:
96.28 	(1) short-term, nonrecurring shelter and utility needs that are excluded from the 
96.29 	definition of assistance under Code of Federal Regulations, title 45, section 260.31, for 
96.30 	families who meet the residency requirement in section 256J.12, subdivisions 1 and 1a. 
96.31 	Payments under this subdivision are not considered TANF cash assistance and are not 
96.32 	counted towards the 60-month time limit; 
96.33 	(2) transportation needed to obtain or retain employment or to participate in other 
96.34 	approved work activities or activities under a family stabilization plan;
97.1 	(3) direct and administrative costs of staff to deliver employment services for 
97.2 	MFIP or,  the diversionary work program, or the family stabilization services program; 
97.3 	 to administer financial assistance,;  and to provide specialized services intended to assist 
97.4 	hard-to-employ participants to transition to work or transition from the family stabilization 
97.5 	services program to MFIP;
97.6 	(4) costs of education and training including functional work literacy and English as 
97.7 	a second language;
97.8 	(5) cost of work supports including tools, clothing, boots, telephone service, and 
97.9 	other work-related expenses;
97.10 	(6) county administrative expenses as defined in Code of Federal Regulations, title 
97.11 	45, section 260(b);
97.12 	(7) services to parenting and pregnant teens;
97.13 	(8) supported work;
97.14 	(9) wage subsidies;
97.15 	(10) child care needed for MFIP or, the  diversionary work program, or the family 
97.16 	stabilization services program  participants to participate in social services;
97.17 	(11) child care to ensure that families leaving MFIP or diversionary work program 
97.18 	will continue to receive child care assistance from the time the family no longer qualifies 
97.19 	for transition year child care until an opening occurs under the basic sliding fee child 
97.20 	care program; and
97.21 	(12) services to help noncustodial parents who live in Minnesota and have minor 
97.22 	children receiving MFIP or DWP assistance, but do not live in the same household as the 
97.23 	child, obtain or retain employment; and
97.24 	(13) services to help families participating in the family stabilization services 
97.25 	program achieve the greatest possible degree of self-sufficiency.
97.26 	(b) Administrative costs that are not matched with county funds as provided in 
97.27 	subdivision 8 may not exceed 7.5 percent of a county's or 15 percent of a tribe's allocation 
97.28 	under this section. The commissioner shall define administrative costs for purposes of 
97.29 	this subdivision.
97.30 	(c) The commissioner may waive the cap on administrative costs for a county or tribe 
97.31 	that elects to provide an approved supported employment, unpaid work, or community 
97.32 	work experience program for a major segment of the county's or tribe's MFIP population. 
97.33 	The county or tribe must apply for the waiver on forms provided by the commissioner. In 
97.34 	no case shall total administrative costs exceed the TANF limits.

97.35 	Sec. 45. Minnesota Statutes 2006, section 256J.626, subdivision 3, is amended to read:
98.1 		Subd. 3.Eligibility for services. Families with a minor child, a pregnant woman, 
98.2 	or a noncustodial parent of a minor child receiving assistance, with incomes below 200 
98.3 	percent of the federal poverty guideline for a family of the applicable size, are eligible 
98.4 	for services funded under the consolidated fund. Counties and tribes must give priority 
98.5 	to families currently receiving MFIP or, the  diversionary work program, or the family 
98.6 	stabilization services program, and families at risk of receiving MFIP or diversionary 
98.7 	work program.

98.8 	Sec. 46. Minnesota Statutes 2006, section 256J.626, subdivision 4, is amended to read:
98.9 		Subd. 4.County and tribal biennial service agreements. (a) Effective January 1, 
98.10 	2004, and each two-year period thereafter, each county and tribe must have in place an 
98.11 	approved biennial service agreement related to the services and programs in this chapter. 
98.12 	In counties with a city of the first class with a population over 300,000, the county must 
98.13 	consider a service agreement that includes a jointly developed plan for the delivery of 
98.14 	employment services with the city. Counties may collaborate to develop multicounty, 
98.15 	multitribal, or regional service agreements.
98.16 	(b) The service agreements will be completed in a form prescribed by the 
98.17 	commissioner. The agreement must include:
98.18 	(1) a statement of the needs of the service population and strengths and resources 
98.19 	in the community;
98.20 	(2) numerical goals for participant outcomes measures to be accomplished during 
98.21 	the biennial period. The commissioner may identify outcomes from section 256J.751, 
98.22 	subdivision 2, as core outcomes for all counties and tribes; 
98.23 	(3) strategies the county or tribe will pursue to achieve the outcome targets. 
98.24 	Strategies must include specification of how funds under this section will be used and may 
98.25 	include community partnerships that will be established or strengthened; and
98.26 	(4) strategies the county or tribe will pursue under the family stabilization services 
98.27 	program; and 
98.28 	(5) other items prescribed by the commissioner in consultation with counties and 
98.29 	tribes.
98.30 	(c) The commissioner shall provide each county and tribe with information needed 
98.31 	to complete an agreement, including: (1) information on MFIP cases in the county or 
98.32 	tribe; (2) comparisons with the rest of the state; (3) baseline performance on outcome 
98.33 	measures; and (4) promising program practices.
98.34 	(d) The service agreement must be submitted to the commissioner by October 15, 
98.35 	2003, and October 15 of each second year thereafter. The county or tribe must allow 
99.1 	a period of not less than 30 days prior to the submission of the agreement to solicit 
99.2 	comments from the public on the contents of the agreement.
99.3 	(e) The commissioner must, within 60 days of receiving each county or tribal service 
99.4 	agreement, inform the county or tribe if the service agreement is approved. If the service 
99.5 	agreement is not approved, the commissioner must inform the county or tribe of any 
99.6 	revisions needed prior to approval.
99.7 	(f) The service agreement in this subdivision supersedes the plan requirements 
99.8 	of section 116L.88. 

99.9 	Sec. 47. Minnesota Statutes 2006, section 256J.626, subdivision 5, is amended to read:
99.10 		Subd. 5.Innovation projects. Beginning January 1, 2005, no more than $3,000,000 
99.11 	of the funds annually appropriated to the commissioner for use in the consolidated fund 
99.12 	shall be available to the commissioner for projects testing innovative approaches to 
99.13 	improving outcomes for MFIP participants, family stabilization services  participants, 
99.14 	and persons at risk of receiving MFIP as detailed in subdivision 3, and for providing 
99.15 	incentives to counties and tribes that exceed performance. Projects shall be targeted to 
99.16 	geographic areas with poor outcomes as specified in section 256J.751, subdivision 5, or to 
99.17 	subgroups within the MFIP case load who are experiencing poor outcomes. For purposes 
99.18 	of an incentive, a county or tribe exceeds performance if the county or tribe is above the 
99.19 	top of the county or tribe's annualized range of expected performance on the three-year 
99.20 	self-support index under section 256J.751, subdivision 2, clause (6), and achieves a 50 
99.21 	percent MFIP participation rate under section 256J.751, subdivision 2, clause (7), as 
99.22 	averaged across the four quarterly measurements for the most recent year for which the 
99.23 	measurements are available.

99.24 	Sec. 48. Minnesota Statutes 2006, section 256J.626, subdivision 6, is amended to read:
99.25 		Subd. 6.Base allocation to counties and tribes; definitions. (a) For purposes of 
99.26 	this section, the following terms have the meanings given.
99.27 	(1) "2002 historic spending base" means the commissioner's determination of 
99.28 	the sum of the reimbursement related to fiscal year 2002 of county or tribal agency 
99.29 	expenditures for the base programs listed in clause (6), items (i) through (iv), and earnings 
99.30 	related to calendar year 2002 in the base program listed in clause (6), item (v), and the 
99.31 	amount of spending in fiscal year 2002 in the base program listed in clause (6), item (vi), 
99.32 	issued to or on behalf of persons residing in the county or tribal service delivery area.
99.33 	(2) "Adjusted caseload factor" means a factor weighted:
100.1 	(i) 47 percent on the MFIP cases in each county at four points in time in the most 
100.2 	recent 12-month period for which data is available multiplied by the county's caseload 
100.3 	difficulty factor; and
100.4 	(ii) 53 percent on the count of adults on MFIP in each county and tribe at four points 
100.5 	in time in the most recent 12-month period for which data is available multiplied by the 
100.6 	county or tribe's caseload difficulty factor.
100.7 	(3) "Caseload difficulty factor" means a factor determined by the commissioner for 
100.8 	each county and tribe based upon the self-support index described in section 256J.751, 
100.9 	subdivision 2, clause (7)(6).
100.10 	(4) "Initial allocation" means the amount potentially available to each county or tribe 
100.11 	based on the formula in paragraphs (b) through (h)and (c).
100.12 	(5) "Final allocation" means the amount available to each county or tribe based on 
100.13 	the formula in paragraphs (b) through (h), after adjustment by subdivision 7 and (c).
100.14 	(6) "Base programs" means the:
100.15 	(i) MFIP employment and training services under Minnesota Statutes 2002, section 
100.16 	256J.62, subdivision 1, in effect June 30, 2002;
100.17 	(ii) bilingual employment and training services to refugees under Minnesota Statutes 
100.18 	2002, section 256J.62, subdivision 6, in effect June 30, 2002;
100.19 	(iii) work literacy language programs under Minnesota Statutes 2002, section 
100.20 	256J.62, subdivision 7, in effect June 30, 2002;
100.21 	(iv) supported work program authorized in Laws 2001, First Special Session chapter 
100.22 	9, article 17, section 2, in effect June 30, 2002;
100.23 	(v) administrative aid program under section 256J.76 in effect December 31, 2002; 
100.24 	and
100.25 	(vi) emergency assistance program under Minnesota Statutes 2002, section 256J.48, 
100.26 	in effect June 30, 2002.
100.27 	(b) The commissioner shall:
100.28 	(1) beginning July 1, 2003, determine the initial allocation of funds available under 
100.29 	this section according to clause (2);
100.30 	(2) allocate all of the funds available for the period beginning July 1, 2003, and 
100.31 	ending December 31, 2004, to each county or tribe in proportion to the county's or tribe's 
100.32 	share of the statewide 2002 historic spending base;
100.33 	(3) determine for calendar year 2005 the initial allocation of funds to be made 
100.34 	available under this section in proportion to the county or tribe's initial allocation for the 
100.35 	period of July 1, 2003, to December 31, 2004;
101.1 	(4) determine for calendar year 2006 the initial allocation of funds to be made 
101.2 	available under this section based 90 percent on the proportion of the county or tribe's 
101.3 	share of the statewide 2002 historic spending base and ten percent on the proportion of 
101.4 	the county or tribe's share of the adjusted caseload factor;
101.5 	(5) determine for calendar year 2007 the initial allocation of funds to be made 
101.6 	available under this section based 70 percent on the proportion of the county or tribe's 
101.7 	share of the statewide 2002 historic spending base and 30 percent on the proportion of the 
101.8 	county or tribe's share of the adjusted caseload factor; and
101.9 	(6) determine for calendar year 2008 and subsequent years the initial allocation of 
101.10 	funds to be made available under this section based 50 percent on the proportion of the 
101.11 	county or tribe's share of the statewide 2002 historic spending base and 50 percent on the 
101.12 	proportion of the county or tribe's share of the adjusted caseload factor.
101.13 	(c) With the commencement of a new or expanded tribal TANF program or an 
101.14 	agreement under section 256.01, subdivision 2, paragraph (g), in which some or all of 
101.15 	the responsibilities of particular counties under this section are transferred to a tribe, 
101.16 	the commissioner shall:
101.17 	(1) in the case where all responsibilities under this section are transferred to a tribal 
101.18 	program, determine the percentage of the county's current caseload that is transferring to a 
101.19 	tribal program and adjust the affected county's allocation accordingly; and
101.20 	(2) in the case where a portion of the responsibilities under this section are 
101.21 	transferred to a tribal program, the commissioner shall consult with the affected county or 
101.22 	counties to determine an appropriate adjustment to the allocation.
101.23 	(d) Effective January 1, 2005, counties and tribes will have their final allocations 
101.24 	adjusted based on the performance provisions of subdivision 7.

101.25 	Sec. 49. Minnesota Statutes 2006, section 256J.626, subdivision 7, is amended to read:
101.26 		Subd. 7.Performance base funds. (a) Beginning calendar year 2005, each county 
101.27 	and tribe will be allocated 9597.5 percent of their initial calendar year allocation. 
101.28 	Counties and tribes will be allocated additional funds based on performance as follows:
101.29 	(1) for calendar year 2005, a county or tribe that achieves a 30 percent rate or higher 
101.30 	on the MFIP participation rate under section 256J.751, subdivision 2, clause (8), as 
101.31 	averaged across the four quarterly measurements for the most recent year for which the 
101.32 	measurements are available, will receive an additional allocation equal to 2.5 percent of 
101.33 	its initial allocation; and
101.34 	(2) for calendar year 2006, a county or tribe that achieves a 40 percent rate or a 
101.35 	five percentage point improvement over the previous year's MFIP participation rate 
102.1 	under section 256J.751, subdivision 2, clause (8), as averaged across the four quarterly 
102.2 	measurements for the most recent year for which the measurements are available, will 
102.3 	receive an additional allocation equal to 2.5 percent of its initial allocation; and
102.4 	(3) for calendar year 2007, a county or tribe that achieves a 50 percent rate or a 
102.5 	five percentage point improvement over the previous year's MFIP participation rate 
102.6 	under section 256J.751, subdivision 2, clause (8), as averaged across the four quarterly 
102.7 	measurements for the most recent year for which the measurements are available, will 
102.8 	receive an additional allocation equal to 2.5 percent of its initial allocation; and
102.9 	(4) for calendar year 2008 and yearly thereafter, a county or tribe that achieves a 
102.10 	50 percent MFIP participation rate under section 256J.751, subdivision 2, clause (8), as 
102.11 	averaged across the four quarterly measurements for the most recent year for which the 
102.12 	measurements are available, will receive an additional allocation equal to 2.51.25 percent 
102.13 	of its initial allocation; and
102.14 	(5) for calendar years 2005 and thereafter, a county or tribe that performs above the 
102.15 	top of its annualized range of expected performance on the three-year self-support index 
102.16 	under section 256J.751, subdivision 2, clause (7), will receive an additional allocation 
102.17 	equal to five 2.5 percent of its initial allocation; or
102.18 	(6) for calendar years 2005 and thereafter, a county or tribe that performs within 
102.19 	its range of expected performance on the annualized three-year self-support index under 
102.20 	section 256J.751, subdivision 2, clause (7), will receive an additional allocation equal to 
102.21 	2.51.25 percent of its initial allocation.
102.22 	(b) Performance-based funds for a federally approved tribal TANF program in which 
102.23 	the state and tribe have in place a contract under section 256.01, addressing consolidated 
102.24 	funding, will be allocated as follows:
102.25 	(1) for calendar year 2006 and yearly thereafter, a tribe that achieves the participation 
102.26 	rate approved in its federal TANF plan using the average of four quarterly measurements 
102.27 	for the most recent year for which the measurements are available, will receive an 
102.28 	additional allocation equal to 2.51.25 percent of its initial allocation; and
102.29 	(2) for calendar years 2006 and thereafter, a tribe that performs above the top of its 
102.30 	annualized range of expected performance on the three-year self-support index under 
102.31 	section 256J.751, subdivision 2, clause (7), will receive an additional allocation equal to 
102.32 	five2.5 percent of its initial allocation; or
102.33 	(3) for calendar years 2006 and thereafter, a tribe that performs within its range 
102.34 	of expected performance on the annualized three-year self-support index under section 
102.35 	256J.751, subdivision 2, clause (7), will receive an additional allocation equal to 2.51.25 
102.36 	percent of its initial allocation.
103.1 	(c) Funds remaining unallocated after the performance-based allocations in 
103.2 	paragraph (a) are available to the commissioner for innovation projects under subdivision 
103.3 	5.
103.4 	(d)(1) If available funds are insufficient to meet county and tribal allocations 
103.5 	under paragraph (a), the commissioner may make available for allocation funds that are 
103.6 	unobligated and available from the innovation projects through the end of the current 
103.7 	biennium.
103.8 	(2) If after the application of clause (1) funds remain insufficient to meet county and 
103.9 	tribal allocations under paragraph (a), the commissioner must proportionally reduce the 
103.10 	allocation of each county and tribe with respect to their maximum allocation available 
103.11 	under paragraph (a).

103.12 	Sec. 50. Minnesota Statutes 2006, section 256J.751, subdivision 2, is amended to read:
103.13 		Subd. 2.Quarterly comparison report. The commissioner shall report quarterly to 
103.14 	all counties on each county's performance on the following measures:
103.15 	(1) percent of MFIP caseload working in paid employment;
103.16 	(2) percent of MFIP caseload receiving only the food portion of assistance;
103.17 	(3) number of MFIP cases that have left assistance;
103.18 	(4) median placement wage rate;
103.19 	(5) caseload by months of TANF assistance;
103.20 	(6) percent of MFIP and diversionary work program (DWP) cases off cash assistance 
103.21 	or working 30 or more hours per week at one-year, two-year, and three-year follow-up 
103.22 	points from a baseline quarter. This measure is called the self-support index. The 
103.23 	commissioner shall report quarterly an expected range of performance for each county, 
103.24 	county grouping, and tribe on the self-support index. The expected range shall be derived 
103.25 	by a statistical methodology developed by the commissioner in consultation with the 
103.26 	counties and tribes. The statistical methodology shall control differences across counties 
103.27 	in economic conditions and demographics of the MFIP and DWP case load; and
103.28 	(7) the MFIP TANF work participation rate, defined as the participation requirements 
103.29 	specified in title 1 of Public Law 104-193 applied to all MFIP cases except child only 
103.30 	cases under Public Law 109-171, the Deficit Reduction Act of 2005.

103.31 	Sec. 51. Minnesota Statutes 2006, section 256J.751, subdivision 5, is amended to read:
103.32 		Subd. 5.Failure to meet federal performance standards. (a) If sanctions occur 
103.33 	for failure to meet the performance standards specified in title 1 of Public Law 104-193 
103.34 	of the Personal Responsibility and Work Opportunity Act of 1996, and under Public 
104.1 	Law 109-171, the Deficit Reduction Act of 2005, the state shall pay 88 percent of the 
104.2 	sanction. The remaining 12 percent of the sanction will be paid by the counties. The 
104.3 	county portion of the sanction will be distributed across all counties in proportion to each 
104.4 	county's percentage of the MFIP average monthly caseload during the period for which 
104.5 	the sanction was applied.
104.6 	(b) If a county fails to meet the performance standards specified in title 1 of Public 
104.7 	Law 104-193 of the Personal Responsibility and Work Opportunity Act of 1996, and 
104.8 	Public Law 109-171, the Deficit Reduction Act of 2005, for any year, the commissioner 
104.9 	shall work with counties to organize a joint state-county technical assistance team to work 
104.10 	with the county. The commissioner shall coordinate any technical assistance with other 
104.11 	departments and agencies including the Departments of Employment and Economic 
104.12 	Development and Education as necessary to achieve the purpose of this paragraph.
104.13 	(c) For state performance measures, a low-performing county is one that:
104.14 	(1) performs below the bottom of their expected range for the measure in subdivision 
104.15 	2, clause (7) (6), in an annualized measurement reported in October of each year; or
104.16 	(2) performs below 40 percent for the measure in subdivision 2, clause (8) (7), as 
104.17 	averaged across the four quarterly measurements for the year, or the ten counties with the 
104.18 	lowest rates if more than ten are below 40 percent.
104.19 	(d) Low-performing counties under paragraph (c) must engage in corrective action 
104.20 	planning as defined by the commissioner. The commissioner may coordinate technical 
104.21 	assistance as specified in paragraph (b) for low-performing counties under paragraph (c).

104.22 	Sec. 52. Minnesota Statutes 2006, section 256J.95, subdivision 3, is amended to read:
104.23 		Subd. 3.Eligibility for diversionary work program. (a) Except for the categories 
104.24 	of family units listed below, all family units who apply for cash benefits and who 
104.25 	meet MFIP eligibility as required in sections 256J.11 to 256J.15 are eligible and must 
104.26 	participate in the diversionary work program. Family units that are not eligible for the 
104.27 	diversionary work program include:
104.28 	(1) child only cases;
104.29 	(2) a single-parent family unit that includes a child under 12 weeks of age. A parent 
104.30 	is eligible for this exception once in a parent's lifetime and is not eligible if the parent 
104.31 	has already used the previously allowed child under age one exemption from MFIP 
104.32 	employment services;
104.33 	(3) a minor parent without a high school diploma or its equivalent;
104.34 	(4) an 18- or 19-year-old caregiver without a high school diploma or its equivalent 
104.35 	who chooses to have an employment plan with an education option;
105.1 	(5) a caregiver age 60 or over;
105.2 	(6) family units with a caregiver who received DWP benefits in the 12 months prior 
105.3 	to the month the family applied for DWP, except as provided in paragraph (c);
105.4 	(7) family units with a caregiver who received MFIP within the 12 months prior to 
105.5 	the month the family unit applied for DWP;
105.6 	(8) a family unit with a caregiver who received 60 or more months of TANF 
105.7 	assistance; and
105.8 	(9) a family unit with a caregiver who is disqualified from DWP or MFIP due to 
105.9 	fraud.; and
105.10 	(10) refugees as defined in Code of Federal Regulations, title 45, chapter IV, section 
105.11 	444.43, who arrived in the United States in the 12 months prior to the date of application 
105.12 	for family cash assistance.
105.13 	(b) A two-parent family must participate in DWP unless both caregivers meet the 
105.14 	criteria for an exception under paragraph (a), clauses (1) through (5), or the family unit 
105.15 	includes a parent who meets the criteria in paragraph (a), clause (6), (7), (8), or (9).
105.16 	(c) Once DWP eligibility is determined, the four months run consecutively. If a 
105.17 	participant leaves the program for any reason and reapplies during the four-month period, 
105.18 	the county must redetermine eligibility for DWP.

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

105.20 	Sec. 53. Minnesota Statutes 2006, section 256K.45, is amended by adding a 
105.21 	subdivision to read:
105.22 		Subd. 6.Funding. Any funds appropriated for this section may be expended on 
105.23 	programs described under subdivisions 3 to 5, technical assistance, and capacity building. 
105.24 	Up to four percent of funds appropriated may be used for the purpose of monitoring and 
105.25 	evaluating runaway and homeless youth programs receiving funding under this section. 
105.26 	Funding shall be directed to meet the greatest need, with a significant share of the funding 
105.27 	focused on homeless youth providers in greater Minnesota.

105.28 	Sec. 54. Minnesota Statutes 2006, section 259.67, subdivision 4, is amended to read:
105.29 		Subd. 4.Eligibility conditions. (a) The placing agency shall use the AFDC 
105.30 	requirements as specified in federal law as of July 16, 1996, when determining the child's 
105.31 	eligibility for adoption assistance under title IV-E of the Social Security Act. If the child 
105.32 	does not qualify, the placing agency shall certify a child as eligible for state funded 
105.33 	adoption assistance only if the following criteria are met:
106.1 	(1) Due to the child's characteristics or circumstances it would be difficult to provide 
106.2 	the child an adoptive home without adoption assistance.
106.3 	(2)(i) A placement agency has made reasonable efforts to place the child for adoption 
106.4 	without adoption assistance, but has been unsuccessful; or
106.5 	(ii) the child's licensed foster parents desire to adopt the child and it is determined by 
106.6 	the placing agency that the adoption is in the best interest of the child.
106.7 	(3)(i) The child has been a ward of the commissioner, a Minnesota-licensed 
106.8 	child-placing agency, or a tribal social service agency of Minnesota recognized by the 
106.9 	Secretary of the Interior; or (ii) the child will be adopted according to tribal law without a 
106.10 	termination of parental rights or relinquishment, provided that the tribe has documented 
106.11 	the valid reason why the child cannot or should not be returned to the home of the child's 
106.12 	parent. The placing agency shall not certify a child who remains under the jurisdiction 
106.13 	of the sending agency pursuant to section 260.851, article 5, for state-funded adoption 
106.14 	assistance when Minnesota is the receiving state.
106.15 	(b) For purposes of this subdivision, the characteristics or circumstances that may 
106.16 	be considered in determining whether a child is a child with special needs under United 
106.17 	States Code, title 42, chapter 7, subchapter IV, part E, or meets the requirements of 
106.18 	paragraph (a), clause (1), are the following:
106.19 	(1) The child is a member of a sibling group to be placed as one unit in which at 
106.20 	least one sibling is older than 15 months of age or is described in clause (2) or (3).
106.21 	(2) The child has documented physical, mental, emotional, or behavioral disabilities.
106.22 	(3) The child has a high risk of developing physical, mental, emotional, or behavioral 
106.23 	disabilities.
106.24 	(4) The child is adopted according to tribal law without a termination of parental 
106.25 	rights or relinquishment, provided that the tribe has documented the valid reason why the 
106.26 	child cannot or should not be returned to the home of the child's parent.
106.27 	(4) The child is five years of age or older.
106.28 	(c) When a child's eligibility for adoption assistance is based upon the high risk of 
106.29 	developing physical, mental, emotional, or behavioral disabilities, payments shall not be 
106.30 	made under the adoption assistance agreement unless and until the potential disability 
106.31 	manifests itself as documented by an appropriate health care professional.

106.32 	Sec. 55. Minnesota Statutes 2006, section 270B.14, subdivision 1, is amended to read:
106.33 		Subdivision 1.Disclosure to commissioner of human services. (a) On the request 
106.34 	of the commissioner of human services, the commissioner shall disclose return information 
107.1 	regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to 
107.2 	the extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
107.3 	(b) Data that may be disclosed are limited to data relating to the identity, 
107.4 	whereabouts, employment, income, and property of a person owing or alleged to be owing 
107.5 	an obligation of child support.
107.6 	(c) The commissioner of human services may request data only for the purposes of 
107.7 	carrying out the child support enforcement program and to assist in the location of parents 
107.8 	who have, or appear to have, deserted their children. Data received may be used only 
107.9 	as set forth in section 256.978. 
107.10 	(d) The commissioner shall provide the records and information necessary to 
107.11 	administer the supplemental housing allowance to the commissioner of human services.
107.12 	(e) At the request of the commissioner of human services, the commissioner of 
107.13 	revenue shall electronically match the Social Security numbers and names of participants 
107.14 	in the telephone assistance plan operated under sections 237.69 to 237.711, with those of 
107.15 	property tax refund filers, and determine whether each participant's household income is 
107.16 	within the eligibility standards for the telephone assistance plan. 
107.17 	(f) The commissioner may provide records and information collected under sections 
107.18 	295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid 
107.19 	Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law 
107.20 	102-234. Upon the written agreement by the United States Department of Health and 
107.21 	Human Services to maintain the confidentiality of the data, the commissioner may provide 
107.22 	records and information collected under sections 295.50 to 295.59 to the Centers for 
107.23 	Medicare and Medicaid Services section of the United States Department of Health and 
107.24 	Human Services for purposes of meeting federal reporting requirements. 
107.25 	(g) The commissioner may provide records and information to the commissioner of 
107.26 	human services as necessary to administer the early refund of refundable tax credits.
107.27 	(h) The commissioner may disclose information to the commissioner of human 
107.28 	services necessary to verify income for eligibility and premium payment under the 
107.29 	MinnesotaCare program, under section 256L.05, subdivision 2. 
107.30 	(i) The commissioner may disclose information to the commissioner of human 
107.31 	services necessary to verify whether applicants or recipients for the Minnesota family 
107.32 	investment program, general assistance, food support, and Minnesota supplemental aid 
107.33 	program, and child care assistance have claimed refundable tax credits under chapter 290 
107.34 	and the property tax refund under chapter 290A, and the amounts of the credits.

107.35 	Sec. 56. MFIP PILOT PROGRAM; WORKFORCE U.
 108.1 		Subdivision 1.Establishment. A pilot program is established in Stearns and 
108.2 	Benton Counties to expand the Workforce U program administered by the Stearns-Benton 
108.3 	Employment and Training Council.
108.4 		Subd. 2.Evaluation. The Workforce U pilot program must be evaluated by a 
108.5 	research and evaluation organization with experience evaluating welfare programs. The 
108.6 	evaluation must include information on the total number of persons served, percentage 
108.7 	of participants exiting the program, percentage of former participants reentering the 
108.8 	program, average wages of program participants, and recommendations to the legislature 
108.9 	for possible statewide implementation of the program. The evaluation must be presented 
108.10 	to the legislature by February 15, 2011.
108.11 		Subd. 3.Expiration. The Workforce U pilot program expires on June 30, 2011.

108.12 	Sec. 57. LEECH LAKE YOUTH TREATMENT CENTER PROPOSAL.
 108.13 	(a) The commissioner of human services shall provide a planning grant to address 
108.14 	the unmet need for local, effective, culturally relevant alcohol and drug treatment for 
108.15 	American Indian youth, and develop a plan for a family-based youth treatment center in 
108.16 	the Leech Lake area. The planning grant must be provided to a volunteer board consisting 
108.17 	of at least four members appointed by the commissioner, to include at least the following:
108.18 	(1) two members of the Leech Lake Tribal Council or their designees;
108.19 	(2) one member appointed by the Cass County Social Services administrator; and
108.20 	(3) one member appointed by the Cass Lake-Bena Public School superintendent.
108.21 	(b) The plan must include:
108.22 	(1) an interest, feasibility, and suitability of location study;
108.23 	(2) defining scope of programs and services to be offered;
108.24 	(3) defining site use limitations and restrictions, including physical and capacity;
108.25 	(4) defining facilities required for programs and services offered;
108.26 	(5) identifying partners, partnership roles, and partner resources;
108.27 	(6) developing proposed operating and maintenance budgets;
108.28 	(7) identifying funding sources;
108.29 	(8) developing a long-term funding plan; and
108.30 	(9) developing a formal steering committee, structure, and bylaws.
108.31 	(c) The plan is due to the legislative committees having jurisdiction over chemical 
108.32 	health issues no later than September 2008 in order to provide the 12 months necessary to 
108.33 	complete the plan.

109.1 	Sec. 58. MINNESOTA FOOD SUPPORT PROGRAM SIMPLIFIED 
109.2 	APPLICATION.
 109.3 	The commissioner of human services shall implement a simplified application form 
109.4 	and process for the food support program by January 1, 2008. The commissioner shall 
109.5 	consult with counties and representatives of persons served by the program to develop the 
109.6 	simplified application form and process. The application process shall:
109.7 	(1) include a simple, short form that can be completed by individuals with limited 
109.8 	literacy skills;
109.9 	(2) include an application form for individuals without dependents;
109.10 	(3) include a process that does not require individuals to take time off work for a 
109.11 	face-to-face interview; and
109.12 	(4) minimize demands on county staff in assisting applicants.

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

109.14 	Sec. 59. INSPECTION OF LEGAL UNLICENSED CHILD CARE PROVIDERS.
 109.15 	The commissioner of human services, in consultation with the commissioner of 
109.16 	health and the counties, shall develop and present recommendations to the legislature in 
109.17 	January 2008 in order for each legally unlicensed child care provider receiving child 
109.18 	care assistance funds to receive a onetime home visit to receive information on health 
109.19 	and safety, and school readiness.

109.20 	Sec. 60. COMMISSIONER OF HUMAN SERVICES DUTIES; EARLY 
109.21 	CHILDHOOD AND SCHOOL-AGE PROFESSIONAL DEVELOPMENT 
109.22 	TRAINING.
 109.23 		Subdivision 1.Development and implementation of an early childhood and 
109.24 	school-age professional development system. (a) The commissioner of human services, 
109.25 	in cooperation with the commissioners of education and health, shall develop and phase-in 
109.26 	the implementation of a professional development system for practitioners serving 
109.27 	children in early childhood and school-age programs. The system shall provide training 
109.28 	options and supports for practitioners to voluntarily choose, as they complete or exceed 
109.29 	existing licensing requirements.
109.30 	The system must, at a minimum, include the following features:
109.31 	(1) a continuum of training content based on the early childhood and school-age 
109.32 	care practitioner core competencies that translates knowledge into improved practice to 
109.33 	support children's school success;
110.1 	(2) training strategies that provide direct feedback about practice to practitioners 
110.2 	through ongoing consultation, mentoring, or coaching with special emphasis on early 
110.3 	literacy and early mathematics;
110.4 	(3) an approval process for trainers;
110.5 	(4) a professional development registry for early childhood and school-age care 
110.6 	practitioners that will provide tracking and recognition of practitioner training/career 
110.7 	development progress;
110.8 	(5) a career lattice that includes a range of professional development and educational 
110.9 	opportunities that provide appropriate coursework and degree pathways;
110.10 	(6) development of a plan with public higher education institutions for an articulated 
110.11 	system of education, training, and professional development that includes credit for prior 
110.12 	learning and development of equivalences to two- and four-year degrees;
110.13 	(7) incentives and supports for early childhood and school-age care practitioners 
110.14 	to seek additional training and education, including TEACH, other scholarships, and 
110.15 	career guidance; and
110.16 	(8) coordinated and accessible delivery of training to early childhood and school-age 
110.17 	care practitioners.
110.18 	(b) By January 1, 2008, the commissioner, in consultation with the organizations 
110.19 	named in subdivision 2 shall develop additional opportunities in order to qualify more 
110.20 	licensed family child care providers under section 119B.13, subdivision 3a.
110.21 	(c) The commissioner of human services must evaluate the professional development 
110.22 	system and make continuous improvements.
110.23 	(d) Beginning July 1, 2007, as appropriations permit, the commissioner shall 
110.24 	phase-in the professional development system.
110.25 		Subd. 2.Two-hour early childhood training. By January 15, 2008, the 
110.26 	commissioner of human services, with input from the Minnesota Licensed Family Child 
110.27 	Care Association and the Minnesota Professional Development Council, shall identify 
110.28 	trainings that qualify for the two-hour early childhood development training requirement 
110.29 	for new child care practitioners under Minnesota Statutes, section 245A.14, subdivision 
110.30 	9a, paragraphs (a) and (b). For licensed family child care, the commissioner shall also 
110.31 	seek the input of labor unions that serve licensed family child care providers, if the union 
110.32 	has been recognized by a county to serve licensed family child care providers.

110.33 	Sec. 61. SCHOOL READINESS SERVICE AGREEMENTS.
 110.34 		Subdivision 1.Overview. (a) Effective July 1, 2007, funds must be made available 
110.35 	to allow the commissioner to pay higher rates to up to 50 child care providers who are 
111.1 	deemed by the commissioner to meet the requirements of a school readiness service 
111.2 	agreement (SRSA) provider and perform services that support school readiness for 
111.3 	children and economic stability for parents. The commissioner shall annually earmark 
111.4 	a proportionate amount of the funds under this section for family child care providers 
111.5 	meeting the requirements under subdivision 2. If, after a reasonable amount of time 
111.6 	to allow family child care providers to enter into agreements under this section, the 
111.7 	earmarked funds have not been disbursed, the commissioner may make the funds available 
111.8 	to other eligible providers.
111.9 	(b) A provider may be paid a rate above that currently allowed under Minnesota 
111.10 	Statutes, section 119B.13, if:
111.11 	(1) the provider has entered into an SRSA with the commissioner; 
111.12 	(2) a family using that provider receives child care assistance under any provision in 
111.13 	Minnesota Statutes, chapter 119B, except Minnesota Statutes, section 119B.035; 
111.14 	(3) the family using that provider meets the criteria in this section; and 
111.15 	(4) funding is available under this section.
111.16 		Subd. 2.Provider eligibility. (a) To be considered for an SRSA, a provider shall 
111.17 	apply to the commissioner. To be eligible to apply for an SRSA, a provider shall:
111.18 	(1) be eligible for child care assistance payments under Minnesota Statutes, chapter 
111.19 	119B;
111.20 	(2) have at least 25 percent of the children enrolled with the provider subsidized 
111.21 	through the child care assistance program;
111.22 	(3) provide full-time, full-year child care services; and 
111.23 	(4) serve at least one child who is subsidized through the child care assistance 
111.24 	program and who is expected to enter kindergarten within the following 30 months.
111.25 	(b) The commissioner may waive the 25 percent requirement in paragraph (a), clause 
111.26 	(2), if necessary to achieve geographic distribution of SRSA providers and diversity of 
111.27 	types of care provided by SRSA providers.
111.28 	(c) An eligible provider who would like to enter into an SRSA with the commissioner 
111.29 	shall submit an SRSA application. To determine whether to enter into an SRSA with a 
111.30 	provider, the commissioner shall evaluate the following factors:
111.31 	(1) the qualifications of the provider and the provider's staff;
111.32 	(2) the provider's staff-child ratios;
111.33 	(3) the provider's curriculum;
111.34 	(4) the provider's current or planned parent education activities;
111.35 	(5) the provider's current or planned social service and employment linkages;
111.36 	(6) the provider's child development assessment plan;
112.1 	(7) the geographic distribution needed for SRSA providers;
112.2 	(8) the inclusion of a variety of child care delivery models; and 
112.3 	(9) other related factors determined by the commissioner.
112.4 		Subd. 3.Family and child eligibility. (a) A family eligible to choose an SRSA 
112.5 	provider for their children shall:
112.6 	(1) be eligible to receive child care assistance under any provision in Minnesota 
112.7 	Statutes, chapter 119B, except Minnesota Statutes, section 119B.035; 
112.8 	(2) be in an authorized activity for an average of at least 35 hours per week when 
112.9 	initial eligibility is determined; and 
112.10 	(3) include a child who has not yet entered kindergarten.
112.11 	(b) A family who is determined to be eligible to choose an SRSA provider remains 
112.12 	eligible to be paid at a higher rate through the SRSA provider when the following 
112.13 	conditions exist:
112.14 	(1) the child attends child care with the SRSA provider a minimum of 25 hours per 
112.15 	week, on average;
112.16 	(2) the family has a child who has not yet entered kindergarten; and 
112.17 	(3) the family maintains eligibility under Minnesota Statutes, chapter 119B, except 
112.18 	Minnesota Statutes, section 119B.035.
112.19 	(c) For the 12 months after initial eligibility has been determined, a decrease in 
112.20 	the family's authorized activities to an average of less than 35 hours per week does not 
112.21 	result in ineligibility for the SRSA rate.
112.22 	(d) A family that moves between counties but continues to use the same SRSA 
112.23 	provider shall continue to receive SRSA funding for the increased payments.
112.24 		Subd. 4.Requirements of providers. An SRSA must include assessment, 
112.25 	evaluation, and reporting requirements that promote the goals of improved school 
112.26 	readiness and movement toward appropriate child development milestones. A provider 
112.27 	who enters into an SRSA shall comply with the assessment, evaluation, and reporting 
112.28 	requirements in the SRSA.
112.29 		Subd. 5.Relationship to current law. (a) The following provisions in Minnesota 
112.30 	Statutes, chapter 119B, must be waived or modified for families receiving services under 
112.31 	this section.
112.32 	(b) Notwithstanding Minnesota Statutes, section 119B.13, subdivisions 1 and 1a, 
112.33 	maximum weekly rates under this section are 125 percent of the existing maximum 
112.34 	weekly rate for like-care. Providers eligible for a differential rate under Minnesota 
112.35 	Statutes, section 119B.13, subdivision 3a, remain eligible for the differential above the 
112.36 	rate identified in this section. Only care for children who have not yet entered kindergarten 
113.1 	may be paid at the maximum rate under this section. The provider's charge for service 
113.2 	provided through an SRSA may not exceed the rate that the provider charges a private-pay 
113.3 	family for like-care arrangements.
113.4 	(c) A family or child care provider may not be assessed an overpayment for care 
113.5 	provided through an SRSA unless: 
113.6 	(1) there was an error in the amount of care authorized for the family; or 
113.7 	(2) the family or provider did not timely report a change as required under the law.
113.8 	(d) Care provided through an SRSA is authorized on a weekly basis.
113.9 	(e) Funds appropriated under this section to serve families eligible under Minnesota 
113.10 	Statutes, section 119B.03, are not allocated through the basic sliding fee formula under 
113.11 	Minnesota Statutes, section 119B.03. Funds appropriated under this section are used to 
113.12 	offset increased costs when payments are made under SRSA's.
113.13 	(f) Notwithstanding Minnesota Statutes, section 119B.09, subdivision 6, the 
113.14 	maximum amount of child care assistance that may be authorized for a child receiving 
113.15 	care through an SRSA in a two-week period is 160 hours per child.
113.16 		Subd. 6.Establishment of service agreements. (a) The commissioner shall 
113.17 	approve SRSA's for up to 50 providers that represent diverse parts of the state and a 
113.18 	variety of child care delivery models. Entering into a service agreement does not guarantee 
113.19 	that a provider will receive payment at a higher rate for families receiving child care 
113.20 	assistance. A family eligible under this section shall choose a provider participating in an 
113.21 	SRSA in order for a higher rate to be paid. Payments through SRSA's are also limited by 
113.22 	the availability of SRSA funds.
113.23 	(b) Nothing in this section shall be construed to limit parent choice as defined in 
113.24 	Minnesota Statutes, section 119B.09, subdivision 5.
113.25 	(c) The commissioner may allow for startup time for some providers if failing to 
113.26 	do so would limit geographic diversity of SRSA providers or a variety of child care 
113.27 	delivery models.

113.28 	Sec. 62. FAMILY, FRIEND, AND NEIGHBOR GRANT PROGRAM.
 113.29 		Subdivision 1.Establishment. A family, friend, and neighbor (FFN) grant program 
113.30 	is established to promote children's early literacy, healthy development, and school 
113.31 	readiness, and to foster community partnerships to promote children's school readiness. 
113.32 	The commissioner shall attempt to ensure that grants are made in all areas of the state. The 
113.33 	commissioner of human services shall make grants available to fund: community-based 
113.34 	organizations, nonprofit organizations, and Indian tribes working with FFN caregivers 
114.1 	under subdivision 2, paragraph (a); and community-based partnerships to implement early 
114.2 	literacy programs under subdivision 2, paragraph (b).
114.3 		Subd. 2.Program components. (a)(1) Grants that the commissioner awards under 
114.4 	this section must be used by community-based organizations, nonprofit organizations, and 
114.5 	Indian tribes working with FFN caregivers in local communities, cultural communities, 
114.6 	and Indian tribes to:
114.7 	(i) provide training, support, and resources to FFN caregivers in order to improve 
114.8 	and promote children's health, safety, nutrition, and school readiness;
114.9 	(ii) connect FFN caregivers and children's families with appropriate community 
114.10 	resources that support the families' health, mental health, economic, and developmental 
114.11 	needs;
114.12 	(iii) connect FFN caregivers and children's families to early childhood screening 
114.13 	programs and facilitate referrals where appropriate;
114.14 	(iv) provide FFN caregivers and children's families with information about early 
114.15 	learning guidelines from the Departments of Human Services and Education;
114.16 	(v) provide FFN caregivers and children's families with information about becoming 
114.17 	a licensed family child care provider; and
114.18 	(vi) provide FFN caregivers and children's families with information about early 
114.19 	learning allowances and enrollment opportunities in high quality community-based 
114.20 	child-care and preschool programs.
114.21 	(2) Grants that the commissioner awards under this paragraph also may be used for:
114.22 	(i) health and safety and early learning kits for FFN caregivers;
114.23 	(ii) play-and-learn groups with FFN caregivers;
114.24 	(iii) culturally appropriate early childhood training for FFN caregivers;
114.25 	(iv) transportation for FFN caregivers and children's families to school readiness and 
114.26 	other early childhood training activities;
114.27 	(v) other activities that promote school readiness;
114.28 	(vi) data collection and evaluation;
114.29 	(vii) staff outreach and outreach activities;
114.30 	(viii) translation needs; or
114.31 	(ix) administrative costs that equal up to 12 percent of the recipient's grant award.
114.32 	(b) Grants that the commissioner awards under this section also must be used to fund 
114.33 	partnerships among Minnesota public and regional library systems, community-based 
114.34 	organizations, nonprofit organizations, and Indian tribes to implement early literacy 
114.35 	programs in low-income communities, including tribal communities, to:
115.1 	(1) purchase and equip early childhood read-mobiles that provide FFN caregivers 
115.2 	and children's families with books, training, and early literacy activities;
115.3 	(2) provide FFN caregivers and children's families with translations of early 
115.4 	childhood books, training, and early literacy activities in native languages; or
115.5 	(3) provide FFN caregivers and children's families with early literacy activities in 
115.6 	local libraries.
115.7 		Subd. 3.Grant awards. Interested entities eligible to receive a grant under 
115.8 	this section may apply to the commissioner in the form and manner the commissioner 
115.9 	determines. The commissioner shall awards grants to eligible entities consistent with 
115.10 	the requirements of this section.
115.11 		Subd. 4.Evaluation. The commissioner, in consultation with early childhood 
115.12 	care and education experts at the University of Minnesota, must evaluate the impact of 
115.13 	the grants under subdivision 2 on children's school readiness and submit a written report 
115.14 	to the human services and education finance and policy committees of the legislature by 
115.15 	February 15, 2010.

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

115.17 	Sec. 63. CHILD CARE PROVIDER STUDY.
 115.18 	If sufficient resources to support the costs are provided by one or more governmental 
115.19 	entities, the commissioner of human services is directed to study the implications of 
115.20 	restricting the use of state subsidies in center-based child care to centers meeting state 
115.21 	quality standards under Minnesota Statutes, section 124D.175, paragraph (c), and to 
115.22 	publish the results no later than January 1, 2010. The study must include:
115.23 	(1) the likelihood of there being sufficient child care providers meeting the standards;
115.24 	(2) the cost to bring providers up to the standards and how this cost would be funded;
115.25 	(3) how the standards and the ratings would be communicated to both parents and 
115.26 	the general public; and
115.27 	(4) a determination whether a similar system could be implemented for 
115.28 	non-center-based care.

115.29 	Sec. 64. DIRECTION TO COMMISSIONER.
 115.30 	(a) The commissioner of human services shall offer a request for proposals to 
115.31 	identify a research and evaluation firm with experience working with:
115.32 	(1) homeless youth providers;
115.33 	(2) data; and
115.34 	(3) the topics of housing, homelessness, and a continuum of care for youth.
116.1 	(b) The research and evaluation firm identified under paragraph (a) shall monitor and 
116.2 	evaluate the programs receiving funding under Minnesota Statutes, section 256K.45.

116.3 	Sec. 65. NOT ASSESSING TANF PENALTIES AGAINST COUNTIES.
 116.4 	From October 2006 through October 2007, if the state does not meet the federal 
116.5 	work participation requirements, and the state is penalized by a reduction in the TANF 
116.6 	grant, the state shall not assess penalties against the counties.

116.7 	Sec. 66.  REPEALER.
 116.8 	(a) Minnesota Statutes 2006, sections 119B.08, subdivision 4; 256J.24, subdivision 
116.9 	6; 256J.29; 256J.37, subdivision 3b; and 256J.626, subdivision 9, are repealed.
116.10 	(b) Laws 1997, chapter 8, section 1, is repealed.
116.11 	(c) Minnesota Rules, part 9560.0102, subpart 2, item C, is repealed.

116.12 	ARTICLE 3
116.13 	LICENSING

116.14 	Section 1. Minnesota Statutes 2006, section 245A.035, is amended to read:
116.15 	245A.035 RELATIVE FOSTER CARE; UNLICENSED EMERGENCY 
116.16 	LICENSE RELATIVE PLACEMENT.
116.17 		Subdivision 1.Grant of Emergency license placement. Notwithstanding section 
116.18 	245A.03, subdivision 2a, or 245C.13, subdivision 2, a county agency may place a child 
116.19 	for foster care with a relative who is not licensed to provide foster care, provided the 
116.20 	requirements of subdivision 2 this section are met. As used in this section, the term 
116.21 	"relative" has the meaning given it under section 260C.007, subdivision 27.
116.22 		Subd. 2.Cooperation with emergency licensing placement process. (a) A county 
116.23 	agency that places a child with a relative who is not licensed to provide foster care must 
116.24 	begin the process of securing an emergency license for the relative as soon as possible 
116.25 	and must conduct the initial inspection required by subdivision 3, clause (1), whenever 
116.26 	possible, prior to placing the child in the relative's home, but no later than three working 
116.27 	days after placing the child in the home. A child placed in the home of a relative who is 
116.28 	not licensed to provide foster care must be removed from that home if the relative fails 
116.29 	to cooperate with the county agency in securing an emergency foster care license. The 
116.30 	commissioner may issue an emergency foster care license to a relative with whom the 
116.31 	county agency wishes to place or has placed a child for foster care, or to a relative with 
116.32 	whom a child has been placed by court order.
117.1 	(b) If a child is to be placed in the home of a relative not licensed to provide foster 
117.2 	care, either the placing agency or the county agency in the county in which the relative 
117.3 	lives shall conduct the emergency licensing placement process as required in this section.
117.4 		Subd. 3.Requirements for emergency license placement. Before an emergency 
117.5 	license placement may be issued made, the following requirements must be met:
117.6 	(1) the county agency must conduct an initial inspection of the premises where 
117.7 	the foster care placement is to be provided made to ensure the health and safety of any 
117.8 	child placed in the home. The county agency shall conduct the inspection using a form 
117.9 	developed by the commissioner;
117.10 	(2) at the time of the inspection or placement, whichever is earlier, the county 
117.11 	agency must provide the relative being considered for an emergency license shall receive
117.12 	placement an application form for a child foster care license;
117.13 	(3) whenever possible, prior to placing the child in the relative's home, the relative 
117.14 	being considered for an emergency license placement shall provide the information 
117.15 	required by section 245C.05; and 
117.16 	(4) if the county determines, prior to the issuance of an emergency license
117.17 	placement, that anyone requiring a background study may be prior to licensure of the 
117.18 	home is disqualified under section 245C.14 and chapter 245C, and the disqualification 
117.19 	is one which the commissioner cannot set aside, an emergency license shall placement 
117.20 	must not be issued made.
117.21 		Subd. 4.Applicant study. When the county agency has received the information 
117.22 	required by section 245C.05, the county agency shall begin an applicant study according to 
117.23 	the procedures in chapter 245C. The commissioner may issue an emergency license upon 
117.24 	recommendation of the county agency once the initial inspection has been successfully 
117.25 	completed and the information necessary to begin the applicant background study has been 
117.26 	provided. If the county agency does not recommend that the emergency license be granted, 
117.27 	the agency shall notify the relative in writing that the agency is recommending denial to the 
117.28 	commissioner; shall remove any child who has been placed in the home prior to licensure; 
117.29 	and shall inform the relative in writing of the procedure to request review pursuant to 
117.30 	subdivision 6. An emergency license shall be effective until a child foster care license is 
117.31 	granted or denied, but shall in no case remain in effect more than 120 days from the date 
117.32 	of placement submit the information to the commissioner according to section 245C.05.
117.33 		Subd. 5.Child foster care license application. (a) The relatives with whom the
117.34 	emergency license holder placement has been made shall complete the child foster care 
117.35 	license application and necessary paperwork within ten days of the placement. The county 
117.36 	agency shall assist the emergency license holder applicant to complete the application. 
118.1 	The granting of a child foster care license to a relative shall be under the procedures in this 
118.2 	chapter and according to the standards set forth by foster care rule in Minnesota Rules, 
118.3 	chapter 2960. In licensing a relative, the commissioner shall consider the importance of 
118.4 	maintaining the child's relationship with relatives as an additional significant factor in 
118.5 	determining whether to a background study disqualification should be set aside a licensing 
118.6 	disqualifier under section 245C.22, or to grant a variance of licensing requirements should 
118.7 	be granted under sections 245C.21 to 245C.27 section 245C.30.
118.8 	(b) When the county or private child-placing agency is processing an application 
118.9 	for child foster care licensure of a relative as defined in section 260B.007, subdivision 
118.10 	12, or 260C.007, subdivision 27, the county agency or child-placing agency must explain 
118.11 	the licensing process to the prospective licensee, including the background study process 
118.12 	and the procedure for reconsideration of an initial disqualification for licensure. The 
118.13 	county or private child-placing agency must also provide the prospective relative licensee 
118.14 	with information regarding appropriate options for legal representation in the pertinent 
118.15 	geographic area. If a relative is initially disqualified under section 245C.14, the county 
118.16 	or child-placing agency commissioner must provide written notice of the reasons for the 
118.17 	disqualification and the right to request a reconsideration by the commissioner as required 
118.18 	under section 245C.17.
118.19 	(c) The commissioner shall maintain licensing data so that activities related to 
118.20 	applications and licensing actions for relative foster care providers may be distinguished 
118.21 	from other child foster care settings.
118.22 		Subd. 6.Denial of emergency license. If the commissioner denies an application 
118.23 	for an emergency foster care license under this section, that denial must be in writing and 
118.24 	must include reasons for the denial. Denial of an emergency license is not subject to 
118.25 	appeal under chapter 14. The relative may request a review of the denial by submitting 
118.26 	to the commissioner a written statement of the reasons an emergency license should be 
118.27 	granted. The commissioner shall evaluate the request for review and determine whether 
118.28 	to grant the emergency license. The commissioner's review shall be based on a review 
118.29 	of the records submitted by the county agency and the relative. Within 15 working 
118.30 	days of the receipt of the request for review, the commissioner shall notify the relative 
118.31 	requesting review in written form whether the emergency license will be granted. The 
118.32 	commissioner's review shall be based on a review of the records submitted by the county 
118.33 	agency and the relative. A child shall not be placed or remain placed in the relative's home 
118.34 	while the request for review is pending. Denial of an emergency license shall not preclude 
118.35 	an individual from reapplying for an emergency license or from applying for a child foster 
118.36 	care license. The decision of the commissioner is the final administrative agency action.

119.1 	Sec. 2. Minnesota Statutes 2006, section 245A.10, subdivision 2, is amended to read:
119.2 		Subd. 2.County fees for background studies and licensing inspections. (a) For 
119.3 	purposes of family and group family child care licensing under this chapter, a county 
119.4 	agency may charge a fee to an applicant or license holder to recover the actual cost of 
119.5 	background studies, but in any case not to exceed $100 annually. A county agency may 
119.6 	also charge alicense fee to an applicant or license holder to recover the actual cost of 
119.7 	licensing inspections, but in any case not to exceed $150 annually$50 for a one-year 
119.8 	license or $100 for a two-year license.
119.9 	(b) A county agency may charge a fee to a legal nonlicensed child care provider or 
119.10 	applicant for authorization to recover the actual cost of background studies completed 
119.11 	under section  119B.125, but in any case not to exceed $100 annually. 
119.12 	(c) Counties may elect to reduce or waive the fees in paragraph (a) or (b):
119.13 	(1) in cases of financial hardship;
119.14 	(2)  if the county has a shortage of providers in the county's area;
119.15 	(3) for new providers; or
119.16 	(4) for providers who have attained at least 16 hours of training before seeking 
119.17 	initial licensure.
119.18 	(d) Counties may allow providers to pay the applicant fees in paragraph (a) or (b) on 
119.19 	an installment basis for up to one year. If the provider is receiving child care assistance 
119.20 	payments from the state, the provider may have the fees under paragraph (a) or (b) 
119.21 	deducted from the child care assistance payments for up to one year and the state shall 
119.22 	reimburse the county for the county fees collected in this manner.

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

119.24 	Sec. 3. Minnesota Statutes 2006, section 245A.16, subdivision 1, is amended to read:
119.25 		Subdivision 1.Delegation of authority to agencies. (a) County agencies and 
119.26 	private agencies that have been designated or licensed by the commissioner to perform 
119.27 	licensing functions and activities under section 245A.04andbackground studies for adult 
119.28 	foster care, family adult day services, and until December 31, 2007, family child care, 
119.29 	under chapter 245C,; to recommend denial of applicants under section 245A.05,; to issue 
119.30 	correction orders, to issue variances, and recommend a conditional license under section 
119.31 	245A.06, or to recommend suspending or revoking a license or issuing a fine under section 
119.32 	245A.07, shall comply with rules and directives of the commissioner governing those 
119.33 	functions and with this section. The following variances are excluded from the delegation 
119.34 	of variance authority and may be issued only by the commissioner:
120.1 	(1) dual licensure of family child care and child foster care, dual licensure of child 
120.2 	and adult foster care, and adult foster care and family child care;
120.3 	(2) adult foster care maximum capacity;
120.4 	(3) adult foster care minimum age requirement;
120.5 	(4) child foster care maximum age requirement;
120.6 	(5) variances regarding disqualified individuals except that county agencies may 
120.7 	issue variances under section 245C.30 regarding disqualified individuals when the county 
120.8 	is responsible for conducting a consolidated reconsideration according to sections 245C.25
120.9 	and 245C.27, subdivision 2, clauses (a) and (b), of a county maltreatment determination 
120.10 	and a disqualification based on serious or recurring maltreatment; and
120.11 	(6) the required presence of a caregiver in the adult foster care residence during 
120.12 	normal sleeping hours.
120.13 	(b) County agencies must report:
120.14 	(1) information about disqualification reconsiderations under sections 245C.25 and 
120.15 	245C.27, subdivision 2, clauses paragraphs (a) and (b), and variances granted under 
120.16 	paragraph (a), clause (5), to the commissioner at least monthly in a format prescribed by 
120.17 	the commissioner; and.
120.18 	(2) for relative child foster care applicants and license holders, the number of 
120.19 	relatives, as defined in section 260C.007, subdivision 27, and household members of 
120.20 	relatives who are disqualified under section 245C.14; the disqualifying characteristics 
120.21 	under section 245C.15; the number of these individuals who requested reconsideration 
120.22 	under section 245C.21; the number of set-asides under section 245C.22; and variances 
120.23 	under section 245C.30 issued. This information shall be reported to the commissioner 
120.24 	annually by January 15 of each year in a format prescribed by the commissioner.
120.25 	(c) For family day care programs, the commissioner may authorize licensing reviews 
120.26 	every two years after a licensee has had at least one annual review.
120.27 	(d) For family adult day services programs, the commissioner may authorize 
120.28 	licensing reviews every two years after a licensee has had at least one annual review.
120.29 	(e) A license issued under this section may be issued for up to two years.

120.30 	Sec. 4. Minnesota Statutes 2006, section 245A.16, subdivision 3, is amended to read:
120.31 		Subd. 3.Recommendations to the commissioner. The county or private agency 
120.32 	shall not make recommendations to the commissioner regarding licensure without 
120.33 	first conducting an inspection, and for adult foster care, family adult day services, and 
120.34 	until December 31, 2007, family child care, a background study of the applicant, and 
120.35 	evaluation pursuant to under chapter 245C. The county or private agency must forward its 
121.1 	recommendation to the commissioner regarding the appropriate licensing action within 20 
121.2 	working days of receipt of a completed application.

121.3 	Sec. 5. Minnesota Statutes 2006, section 245C.02, is amended by adding a subdivision 
121.4 	to read:
121.5 		Subd. 14a.Private agency. "Private agency" has the meaning given in section 
121.6 	245A.02, subdivision 12.

121.7 	Sec. 6. Minnesota Statutes 2006, section 245C.04, subdivision 1, is amended to read:
121.8 		Subdivision 1.Licensed programs. (a) The commissioner shall conduct a 
121.9 	background study of an individual required to be studied under section 245C.03, 
121.10 	subdivision 1, at least upon application for initial license for all license types. 
121.11 	(b) The commissioner shall conduct a background study of an individual required 
121.12 	to be studied under section 245C.03, subdivision 1, at reapplication for a license for 
121.13 	family child care,child foster care, and adult foster care, family adult day services, and 
121.14 	until January 1, 2008, family child care. 
121.15 	(c) The commissioner is not required to conduct a study of an individual at the time 
121.16 	of reapplication for a license if the individual's background study was completed by the 
121.17 	commissioner of human services for an adult foster care license holder that is also:
121.18 	(1) registered under chapter 144D; or
121.19 	(2) licensed to provide home and community-based services to people with 
121.20 	disabilities at the foster care location and the license holder does not reside in the foster 
121.21 	care residence; and
121.22 	(3) the following conditions are met:
121.23 	(i) a study of the individual was conducted either at the time of initial licensure or 
121.24 	when the individual became affiliated with the license holder;
121.25 	(ii) the individual has been continuously affiliated with the license holder since 
121.26 	the last study was conducted; and
121.27 	(iii) the last study of the individual was conducted on or after October 1, 1995.
121.28 	(d) From July 1, 2007, to June 30, 2009, the commissioner of human services 
121.29 	shall conduct a study of an individual required to be studied under section 245C.03, at 
121.30 	the time of reapplication for a child foster care license. The county or private agency 
121.31 	shall collect and forward to the commissioner the information required under section 
121.32 	245C.05, subdivisions 1, paragraphs (a) and (b), and 5, paragraphs (a) and (b). The 
121.33 	background study conducted by the commissioner of human services under this paragraph 
122.1 	must include a review of the information required under section 245C.08, subdivisions 
122.2 	1, paragraph (a), clauses (1) to (5), and 3.
122.3 	(e) From January 1, 2008, to December 31, 2009, the commissioner shall conduct 
122.4 	a study of an individual required to be studied under section 245C.03, at the time of 
122.5 	reapplication for a family child care license. The county shall collect and forward to the 
122.6 	commissioner the information required under section 245C.05, subdivisions 1, paragraphs 
122.7 	(a) and (b), and 5, paragraphs (a) and (b). The background study conducted by the 
122.8 	commissioner under this paragraph must include a review of the information required 
122.9 	under section 245C.08, subdivisions 1, paragraph (a), clauses (1) to (5), and 3.
122.10 	(f) The commissioner of human services shall conduct a background study of an 
122.11 	individual specified under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), 
122.12 	who is newly affiliated with a child foster care license holder, and beginning January 1, 
122.13 	2008, a family child care license. The county or private agency shall collect and forward 
122.14 	to the commissioner the information required under section 245C.05, subdivisions 1 and 
122.15 	5. The background study conducted by the commissioner of human services under this 
122.16 	paragraph must include a review of the information required under section 245C.08, 
122.17 	subdivisions 1, paragraph (a), clauses (1) to (5), and 3.
122.18 	(g) Applicants for licensure, license holders, and other entities as provided in this 
122.19 	chapter must submit completed background study forms to the commissioner before 
122.20 	individuals specified in section 245C.03, subdivision 1, begin positions allowing direct 
122.21 	contact in any licensed program. 
122.22 	(e) (h) For purposes of this section, a physician licensed under chapter 147 is 
122.23 	considered to be continuously affiliated upon the license holder's receipt from the 
122.24 	commissioner of health or human services of the physician's background study results.

122.25 	Sec. 7. Minnesota Statutes 2006, section 245C.05, subdivision 1, is amended to read:
122.26 		Subdivision 1.Individual studied. (a) The individual who is the subject of the 
122.27 	background study must provide the applicant, license holder, or other entity under section 
122.28 	245C.04 with sufficient information to ensure an accurate study, including: 
122.29 	(1) the individual's first, middle, and last name and all other names by which the 
122.30 	individual has been known;
122.31 	(2) home address, city, and state of residence;
122.32 	(3) zip code;
122.33 	(4) sex;
122.34 	(5) date of birth; and
122.35 	(6) Minnesota driver's license number or state identification number.
123.1 	(b) Every subject of a background study conducted or initiated by counties or private 
123.2 	agencies under this chapter must also provide the home address, city, county, and state of 
123.3 	residence for the past five years.
123.4 	(c) Every subject of a background study related to child foster care licensed through 
123.5 	a private agency, who is 18 years of age or older, shall also provide the commissioner a 
123.6 	signed consent for the release of any information received from national crime information 
123.7 	databases to the private agency that initiated the background study.
123.8 	(d) The subject of a background study shall provide fingerprints as required in 
123.9 	subdivision 5, paragraph (c).

123.10 	Sec. 8. Minnesota Statutes 2006, section 245C.05, is amended by adding a subdivision 
123.11 	to read:
123.12 		Subd. 2a.County or private agency. For background studies related to child 
123.13 	foster care, and beginning January 1, 2008, for studies related to family child care, county 
123.14 	and private agencies must collect the information under subdivision 1 and forward it to 
123.15 	the commissioner.

123.16 	Sec. 9. Minnesota Statutes 2006, section 245C.05, subdivision 4, is amended to read:
123.17 		Subd. 4.Electronic transmission. For background studies conducted by the 
123.18 	Department of Human Services, the commissioner shall implement a system for the 
123.19 	electronic transmission of:
123.20 	(1) background study information to the commissioner; and
123.21 	(2) background study results to the license holder.; and
123.22 	(3) background study results to county and private agencies for background studies 
123.23 	conducted by the commissioner for child foster care, and beginning January 1, 2008, 
123.24 	also for family child care.

123.25 	Sec. 10. Minnesota Statutes 2006, section 245C.05, subdivision 5, is amended to read:
123.26 		Subd. 5.Fingerprints. (a) Except as provided in paragraph (c), for any background 
123.27 	study completed under this chapter, when the commissioner has reasonable cause to 
123.28 	believe that further pertinent information may exist on the subject of the background 
123.29 	study, the subject shall provide the commissioner with a set of classifiable fingerprints 
123.30 	obtained from an authorized law enforcement agency.
123.31 	(b) For purposes of requiring fingerprints, the commissioner has reasonable cause 
123.32 	when, but not limited to, the:
124.1 	(1) information from the Bureau of Criminal Apprehension indicates that the subject 
124.2 	is a multistate offender;
124.3 	(2) information from the Bureau of Criminal Apprehension indicates that multistate 
124.4 	offender status is undetermined; or
124.5 	(3) commissioner has received a report from the subject or a third party indicating 
124.6 	that the subject has a criminal history in a jurisdiction other than Minnesota.
124.7 	(c) Except as specified under section 245C.04, subdivision 1, paragraph (d), for 
124.8 	background studies conducted by the commissioner for child foster care, the subject of the 
124.9 	background study, who is 18 years of age or older, shall provide the commissioner with a 
124.10 	set of classifiable fingerprints obtained from an authorized agency.

124.11 	Sec. 11. Minnesota Statutes 2006, section 245C.05, subdivision 7, is amended to read:
124.12 		Subd. 7.Probation officer and corrections agent. (a) A probation officer or 
124.13 	corrections agent shall notify the commissioner of an individual's conviction if the 
124.14 	individual is:
124.15 	(1) affiliated with a program or facility regulated by the Department of Human 
124.16 	Services or Department of Health, a facility serving children or youth licensed by the 
124.17 	Department of Corrections, or any type of home care agency or provider of personal care 
124.18 	assistance services; and
124.19 	(2) convicted of a crime constituting a disqualification under section 245C.14. 
124.20 	(b) For the purpose of this subdivision, "conviction" has the meaning given it 
124.21 	in section 609.02, subdivision 5. 
124.22 	(c) The commissioner, in consultation with the commissioner of corrections, shall 
124.23 	develop forms and information necessary to implement this subdivision and shall provide 
124.24 	the forms and information to the commissioner of corrections for distribution to local 
124.25 	probation officers and corrections agents.
124.26 	(d) The commissioner shall inform individuals subject to a background study that 
124.27 	criminal convictions for disqualifying crimes will be reported to the commissioner by the 
124.28 	corrections system.
124.29 	(e) A probation officer, corrections agent, or corrections agency is not civilly or 
124.30 	criminally liable for disclosing or failing to disclose the information required by this 
124.31 	subdivision.
124.32 	(f) Upon receipt of disqualifying information, the commissioner shall provide the 
124.33 	notice required under section 245C.17, as appropriate, to agencies on record as having 
124.34 	initiated a background study or making a request for documentation of the background 
124.35 	study status of the individual. 
125.1 	(g) This subdivision does not apply to family child care and child foster care
125.2 	programs until January 1, 2008.

125.3 	Sec. 12. Minnesota Statutes 2006, section 245C.08, subdivision 1, is amended to read:
125.4 		Subdivision 1.Background studies conducted by commissioner of human 
125.5 	services. (a) For a background study conducted by the commissioner, the commissioner 
125.6 	shall review:
125.7 	(1) information related to names of substantiated perpetrators of maltreatment of 
125.8 	vulnerable adults that has been received by the commissioner as required under section 
125.9 	626.557, subdivision 9c, paragraph (i);
125.10 	(2) the commissioner's records relating to the maltreatment of minors in licensed 
125.11 	programs, and from county agency findings of maltreatment of minors as indicated 
125.12 	through the social service information system;
125.13 	(3) information from juvenile courts as required in subdivision 4 for individuals 
125.14 	listed in section 245C.03, subdivision 1, clauses (2), (5), and (6); and
125.15 	(4) information from the Bureau of Criminal Apprehension.; 
125.16 	(5) except as provided in clause (6), information from the national crime information 
125.17 	system when the commissioner has reasonable cause as defined under section 245C.05, 
125.18 	subdivision 5; and
125.19 	(6) for a background study related to a child foster care application for licensure, the 
125.20 	commissioner shall also review:
125.21 	(i) information from the child abuse and neglect registry for any state in which the 
125.22 	background study subject has resided in for the past five years; and
125.23 	(ii) information from national crime information databases, when the background 
125.24 	study object is 18 years of age or older.
125.25 	(b) Notwithstanding expungement by a court, the commissioner may consider 
125.26 	information obtained under paragraph (a), clauses (3) and (4), unless the commissioner 
125.27 	received notice of the petition for expungement and the court order for expungement is 
125.28 	directed specifically to the commissioner.

125.29 	Sec. 13. Minnesota Statutes 2006, section 245C.08, subdivision 2, is amended to read:
125.30 		Subd. 2.Background studies conducted by a county or private agency. (a) For 
125.31 	a background study conducted by a county or private agency for child foster care, adult 
125.32 	foster care, family adult day services, and until January 1, 2008, family child care homes
125.33 	services, the commissioner shall review:
126.1 	(1) information from the county agency's record of substantiated maltreatment 
126.2 	of adults and the maltreatment of minors;
126.3 	(2) information from juvenile courts as required in subdivision 4 for individuals 
126.4 	listed in section 245C.03, subdivision 1, clauses (2), (5), and (6);
126.5 	(3) information from the Bureau of Criminal Apprehension; and
126.6 	(4) arrest and investigative records maintained by the Bureau of Criminal 
126.7 	Apprehension, county attorneys, county sheriffs, courts, county agencies, local police, the 
126.8 	National Criminal Records Repository, and criminal records from other states.
126.9 	(b) If the individual has resided in the county for less than five years, the study shall 
126.10 	include the records specified under paragraph (a) for the previous county or counties of 
126.11 	residence for the past five years.
126.12 	(c) Notwithstanding expungement by a court, the county or private agency may 
126.13 	consider information obtained under paragraph (a), clauses (3) and (4), unless the 
126.14 	commissioner received notice of the petition for expungement and the court order for 
126.15 	expungement is directed specifically to the commissioner.

126.16 	Sec. 14. Minnesota Statutes 2006, section 245C.10, is amended by adding a 
126.17 	subdivision to read:
126.18 		Subd. 4.Temporary personnel agencies, educational programs, and professional 
126.19 	services agencies. The commissioner shall recover the cost of the background studies 
126.20 	initiated by temporary personnel agencies, educational programs, and professional 
126.21 	services agencies that initiate background studies under section 245C.03, subdivision 4, 
126.22 	through a fee of no more than $20 per study charged to the agency. The fees collected 
126.23 	under this subdivision are appropriated to the commissioner for the purpose of conducting 
126.24 	background studies.

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

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

127.8 	Sec. 17. Minnesota Statutes 2006, section 245C.12, is amended to read:
127.9 	245C.12 BACKGROUND STUDY; TRIBAL ORGANIZATIONS.
127.10 	(a) For the purposes of background studies completed by tribal organizations 
127.11 	performing licensing activities otherwise required of the commissioner under this chapter, 
127.12 	after obtaining consent from the background study subject, tribal licensing agencies shall 
127.13 	have access to criminal history data in the same manner as county licensing agencies and 
127.14 	private licensing agencies under this chapter.
127.15 	(b) Tribal organizations may contract with the commissioner to obtain background 
127.16 	study data on individuals under tribal jurisdiction related to adoptions according to 
127.17 	section 245C.34. Tribal organizations may also contract with the commissioner to obtain 
127.18 	background study data on individuals under tribal jurisdiction related to child foster care 
127.19 	according to section 245C.34.

127.20 	Sec. 18. Minnesota Statutes 2006, section 245C.16, subdivision 1, is amended to read:
127.21 		Subdivision 1.Determining immediate risk of harm. (a) If the commissioner 
127.22 	determines that the individual studied has a disqualifying characteristic, the commissioner 
127.23 	shall review the information immediately available and make a determination as to the 
127.24 	subject's immediate risk of harm to persons served by the program where the individual 
127.25 	studied will have direct contact.
127.26 	(b) The commissioner shall consider all relevant information available, including the 
127.27 	following factors in determining the immediate risk of harm:
127.28 	(1) the recency of the disqualifying characteristic;
127.29 	(2) the recency of discharge from probation for the crimes;
127.30 	(3) the number of disqualifying characteristics;
127.31 	(4) the intrusiveness or violence of the disqualifying characteristic;
127.32 	(5) the vulnerability of the victim involved in the disqualifying characteristic;
127.33 	(6) the similarity of the victim to the persons served by the program where the 
127.34 	individual studied will have direct contact; and
128.1 	(7) whether the individual has a disqualification from a previous background study 
128.2 	that has not been set aside.
128.3 	(c) This section does not apply when the subject of a background study is regulated 
128.4 	by a health-related licensing board as defined in chapter 214, and the subject is determined 
128.5 	to be responsible for substantiated maltreatment under section 626.556 or 626.557. 
128.6 	(d) This section does not apply to a background study related to an initial application 
128.7 	for a child foster care license.
128.8 	(e) If the commissioner has reason to believe, based on arrest information or an 
128.9 	active maltreatment investigation, that an individual poses an imminent risk of harm to 
128.10 	persons receiving services, the commissioner may order that the person be continuously 
128.11 	supervised or immediately removed pending the conclusion of the maltreatment 
128.12 	investigation or criminal proceedings.

128.13 	Sec. 19. Minnesota Statutes 2006, section 245C.17, is amended by adding a 
128.14 	subdivision to read:
128.15 		Subd. 5.Notice to county or private agency. For studies on individuals related 
128.16 	to a license to provide child foster care, and beginning January 1, 2008, for family child 
128.17 	care, the commissioner shall also provide a notice of the background study results to the 
128.18 	county or private agency that initiated the background study.

128.19 	Sec. 20. Minnesota Statutes 2006, section 245C.21, is amended by adding a 
128.20 	subdivision to read:
128.21 		Subd. 1a.Submission of reconsideration request to county or private agency.
 128.22 	(a) For disqualifications related to studies conducted by county agencies, and for 
128.23 	disqualifications related to studies conducted by the commissioner for child foster care, and 
128.24 	beginning January 1, 2008, for family child care, the individual shall submit the request 
128.25 	for reconsideration to the county or private agency that initiated the background study.
128.26 	(b) A reconsideration request shall be submitted within the time frames specified in 
128.27 	subdivision 2.
128.28 	(c) The county or private agency shall forward the individual's request for 
128.29 	reconsideration and provide the commissioner with a recommendation whether to set aside 
128.30 	the individual's disqualification.

128.31 	Sec. 21. Minnesota Statutes 2006, section 245C.23, subdivision 2, is amended to read:
128.32 		Subd. 2.Commissioner's notice of disqualification that is not set aside. (a) The 
128.33 	commissioner shall notify the license holder of the disqualification and order the license 
129.1 	holder to immediately remove the individual from any position allowing direct contact 
129.2 	with persons receiving services from the license holder if:
129.3 	(1) the individual studied does not submit a timely request for reconsideration 
129.4 	under section 245C.21;
129.5 	(2) the individual submits a timely request for reconsideration, but the commissioner 
129.6 	does not set aside the disqualification for that license holder under section 245C.22;
129.7 	(3) an individual who has a right to request a hearing under sections 245C.27 and 
129.8 	256.045, or 245C.28 and chapter 14 for a disqualification that has not been set aside, does 
129.9 	not request a hearing within the specified time; or
129.10 	(4) an individual submitted a timely request for a hearing under sections 245C.27
129.11 	and 256.045, or 245C.28 and chapter 14, but the commissioner does not set aside the 
129.12 	disqualification under section 245A.08, subdivision 5, or 256.045.
129.13 	(b) If the commissioner does not set aside the disqualification under section 245C.22, 
129.14 	and the license holder was previously ordered under section 245C.17 to immediately 
129.15 	remove the disqualified individual from direct contact with persons receiving services or 
129.16 	to ensure that the individual is under continuous, direct supervision when providing direct 
129.17 	contact services, the order remains in effect pending the outcome of a hearing under 
129.18 	sections 245C.27 and 256.045, or 245C.28 and chapter 14.
129.19 	(c) For background studies related to child foster care, and beginning January 
129.20 	1, 2008, for family child care, the commissioner shall also notify the county or private 
129.21 	agency that initiated the study of the results of the reconsideration.

129.22 	Sec. 22. [245C.33] ADOPTION BACKGROUND STUDY REQUIREMENTS.
129.23 		Subdivision 1.Background studies conducted by commissioner. Before 
129.24 	placement of a child for purposes of adoption, the commissioner shall conduct a 
129.25 	background study on individuals listed in section 259.41, subdivision 3, for county 
129.26 	agencies and private agencies licensed to place children for adoption.
129.27 		Subd. 2.Information and data provided to county or private agency. The 
129.28 	subject of the background study shall provide the following information to the county 
129.29 	or private agency:
129.30 	(1) the information specified in section 245C.05;
129.31 	(2) a set of classifiable fingerprints obtained from an authorized agency; and
129.32 	(3) for studies initiated by a private agency, a signed consent for the release of 
129.33 	information received from national crime information databases to the private agency.
129.34 		Subd. 3.Information and data provided to commissioner. The county or private 
129.35 	agency shall forward the data collected under subdivision 2 to the commissioner.
130.1 		Subd. 4.Information commissioner reviews. (a) The commissioner shall review 
130.2 	the following information regarding the background study subject:
130.3 	(1) the information under section 245C.08, subdivisions 1, 3, and 4;
130.4 	(2) information from the child abuse and neglect registry for any state in which the 
130.5 	subject has resided for the past five years; and
130.6 	(3) information from national crime information databases.
130.7 	(b) The commissioner shall provide any information collected under this subdivision 
130.8 	to the county or private agency that initiated the background study. The commissioner 
130.9 	shall indicate if the information collected shows that the subject of the background study 
130.10 	has a conviction listed in United States Code, title 42, section 671(a)(20)(A).

130.11 	Sec. 23. [245C.34] ADOPTION AND CHILD FOSTER CARE BACKGROUND 
130.12 	STUDIES; TRIBAL ORGANIZATIONS.
130.13 		Subdivision 1.Background studies may be conducted by commissioner. (a) 
130.14 	Tribal organizations may contract with the commissioner under section 245C.12 to obtain 
130.15 	background study data on individuals under tribal jurisdiction related to adoptions.
130.16 	(b) Tribal organizations may contract with the commissioner under section 245C.12 
130.17 	to obtain background study data on individuals under tribal jurisdiction related to child 
130.18 	foster care.
130.19 	(c) Background studies initiated by tribal organizations under paragraphs (a) and (b) 
130.20 	must be conducted as provided in subdivisions 2 and 3.
130.21 		Subd. 2.Information and data provided to tribal organization. The background 
130.22 	study subject must provide the following information to the tribal organization:
130.23 	(1) for background studies related to adoptions, the information under section 
130.24 	245C.05;
130.25 	(2) for background studies related to child foster care, the information under section 
130.26 	245C.05;
130.27 	(3) a set of classifiable fingerprints obtained from an authorized agency; and
130.28 	(4) a signed consent for the release of information received from national crime 
130.29 	information databases to the tribal organization.
130.30 		Subd. 3.Information and data provided to commissioner. The tribal organization 
130.31 	shall forward the data collected under subdivision 2 to the commissioner.
130.32 		Subd. 4.Information commissioner reviews. (a) The commissioner shall review 
130.33 	the following information regarding the background study subject:
130.34 	(1) the information under section 245C.08, subdivisions 1, 3, and 4;
131.1 	(2) information from the child abuse and neglect registry for any state in which the 
131.2 	subject has resided for the past five years; and
131.3 	(3) information from national crime information databases.
131.4 	(b) The commissioner shall provide any information collected under this subdivision 
131.5 	to the tribal organization that initiated the background study. The commissioner shall 
131.6 	indicate if the information collected shows that the subject of the background study has a 
131.7 	conviction listed in United States Code, title 42, section 671(a)(20)(A).

131.8 	Sec. 24. Minnesota Statutes 2006, section 259.20, subdivision 2, is amended to read:
131.9 		Subd. 2.Other applicable law. (a) Portions of chapters 245A, 245C, 257, 260, and 
131.10 	317A may also affect the adoption of a particular child. 
131.11 	(b) Provisions of the Indian Child Welfare Act, United States Code, title 25, chapter 
131.12 	21, sections 1901-1923, may also apply in the adoption of an Indian child, and may 
131.13 	preempt specific provisions of this chapter.
131.14 	(c) Consistent with section 245C.33 and Public Law 109-248, a completed 
131.15 	background study is required before the approval of any foster or adoptive placement in 
131.16 	a related or an unrelated home.

131.17 	Sec. 25. Minnesota Statutes 2006, section 259.29, subdivision 1, is amended to read:
131.18 		Subdivision 1.Best interests of the child. (a) The policy of the state of Minnesota 
131.19 	is to ensure that the best interests of the child are met by requiring individualized 
131.20 	determination of the needs of the child and of how the adoptive placement will serve the 
131.21 	needs of the child.
131.22 	(b) Among the factors the agency shall consider in determining the needs of the child 
131.23 	are those specified under section 260C.193, subdivision 3, paragraph (b).
131.24 	(c) Except for emergency placements provided for in section 245A.035, a completed 
131.25 	background study is required under section 245C.33 before the approval of an adoptive 
131.26 	placement in a home.

131.27 	Sec. 26. Minnesota Statutes 2006, section 259.41, is amended to read:
131.28 	259.41 ADOPTION STUDY.
131.29 		Subdivision 1.Study required before placement; certain relatives excepted. (a) 
131.30 	An approved adoption study; completed background study, as required under section 
131.31 	245C.33; and written report must be completed before the child is placed in a prospective 
131.32 	adoptive home under this chapter, except as allowed by section 259.47, subdivision 6. 
131.33 	In an agency placement, the report must be filed with the court at the time the adoption 
132.1 	petition is filed. In a direct adoptive placement, the report must be filed with the court in 
132.2 	support of a motion for temporary preadoptive custody under section 259.47, subdivision 
132.3 	3, or, if the study and report are complete, in support of an emergency order under section 
132.4 	259.47, subdivision 6. The study and report shall be completed by a licensed child-placing 
132.5 	agency and must be thorough and comprehensive. The study and report shall be paid for 
132.6 	by the prospective adoptive parent, except as otherwise required under section 259.67
132.7 	or 259.73. 
132.8 	(b) A placement for adoption with an individual who is related to the child, as 
132.9 	defined by section 245A.02, subdivision 13, is not subject to this section except as required 
132.10 	by section sections 245C.33 and259.53, subdivision 2, paragraph (c). 
132.11 	(c) In the case of a licensed foster parent seeking to adopt a child who is in the foster 
132.12 	parent's care, any portions of the foster care licensing process that duplicate requirements 
132.13 	of the home study may be submitted in satisfaction of the relevant requirements of this 
132.14 	section.
132.15 		Subd. 2.Form of study. (a) The adoption study must include at least one in-home 
132.16 	visit with the prospective adoptive parent. At a minimum, the study must include
132.17 	document the following information about the prospective adoptive parent:
132.18 	(1) a background check study as required by subdivision 3 and section 245C.33, 
132.19 	and including:
132.20 	(i) an evaluation assessment of the data and information provided by section 
132.21 	245C.33, subdivision 4, to determine if the prospective adoptive parent and any other 
132.22 	person over the age of 13 living in the home has a felony conviction consistent with 
132.23 	subdivision 3 and section 471(a)(2) of the Social Security Act; and
132.24 	(ii) an assessment of the effect of a any conviction or finding of substantiated 
132.25 	maltreatment on the ability to capacity of the prospective adoptive parent to safely care 
132.26 	for and parent a child;
132.27 	(2) a medical and social history and assessment of current health;
132.28 	(3) an assessment of potential parenting skills;
132.29 	(4) an assessment of ability to provide adequate financial support for a child; and
132.30 	(5) an assessment of the level of knowledge and awareness of adoption issues 
132.31 	including, where appropriate, matters relating to interracial, cross-cultural, and special 
132.32 	needs adoptions.
132.33 	(b) The adoption study is the basis for completion of a written report. The report 
132.34 	must be in a format specified by the commissioner and must contain recommendations 
132.35 	regarding the suitability of the subject of the study to be an adoptive parent.
133.1 		Subd. 3.Background check; affidavit of history study. (a) At the time an adoption 
133.2 	study is commenced, each prospective adoptive parent must:
133.3 	(1) authorize access by the agency to any private data needed to complete the study;
133.4 	(2) provide all addresses at which the prospective adoptive parent and anyone in the 
133.5 	household over the age of 13 has resided in the previous five years; and
133.6 	(3) disclose any names used previously other than the name used at the time of 
133.7 	the study.
133.8 	(b) When the requirements of paragraph (a) have been met, the agency shall 
133.9 	immediately begin initiate a background check, study under section 245C.33 to be 
133.10 	completed by the commissioner on each person over the age of 13 living in the home, 
133.11 	consisting, at a minimum, of the following:. As required under section 245C.33 and Public 
133.12 	Law 109-248, a completed background study is required before the approval of any foster 
133.13 	or adoptive placement in a related or an unrelated home. The required background study 
133.14 	must be completed as part of the home study.
133.15 	(1) a check of criminal conviction data with the Bureau of Criminal Apprehension 
133.16 	and local law enforcement authorities;
133.17 	(2) a check for data on substantiated maltreatment of a child or vulnerable adult 
133.18 	and domestic violence data with local law enforcement and social services agencies and 
133.19 	district courts; and
133.20 	(3) for those persons under the age of 25, a check of juvenile court records.
133.21 	Notwithstanding the provisions of section 260B.171 or 260C.171, the Bureau of 
133.22 	Criminal Apprehension, local law enforcement and social services agencies, district courts, 
133.23 	and juvenile courts shall release the requested information to the agency completing 
133.24 	the adoption study.
133.25 	(c) When paragraph (b) requires checking the data or records of local law 
133.26 	enforcement and social services agencies and district and juvenile courts, the agency 
133.27 	shall check with the law enforcement and social services agencies and courts whose 
133.28 	jurisdictions cover the addresses under paragraph (a), clause (2). In the event that the 
133.29 	agency is unable to complete any of the record checks required by paragraph (b), the 
133.30 	agency shall document the fact and the agency's efforts to obtain the information.
133.31 	(d) For a study completed under this section, when the agency has reasonable 
133.32 	cause to believe that further information may exist on the prospective adoptive parent or 
133.33 	household member over the age of 13 that may relate to the health, safety, or welfare of 
133.34 	the child, the prospective adoptive parent or household member over the age of 13 shall 
133.35 	provide the agency with a set of classifiable fingerprints obtained from an authorized law 
133.36 	enforcement agency and the agency may obtain criminal history data from the National 
134.1 	Criminal Records Repository by submitting fingerprints to the Bureau of Criminal 
134.2 	Apprehension. The agency has reasonable cause when, but not limited to, the:
134.3 	(1) information from the Bureau of Criminal Apprehension indicates that the 
134.4 	prospective adoptive parent or household member over the age of 13 is a multistate 
134.5 	offender;
134.6 	(2) information from the Bureau of Criminal Apprehension indicates that multistate 
134.7 	offender status is undetermined;
134.8 	(3) the agency has received a report from the prospective adoptive parent or 
134.9 	household member over the age of 13 or a third party indicating that the prospective 
134.10 	adoptive parent or household member over the age of 13 has a criminal history in a 
134.11 	jurisdiction other than Minnesota; or
134.12 	(4) the prospective adoptive parent or household member over the age of 13 is or has 
134.13 	been a resident of a state other than Minnesota in the prior five years.
134.14 	(e) At any time prior to completion of the background check required under 
134.15 	paragraph (b), a prospective adoptive parent may submit to the agency conducting the 
134.16 	study a sworn affidavit stating whether they or any person residing in the household have 
134.17 	been convicted of a crime. The affidavit shall also state whether the adoptive parent or any 
134.18 	other person residing in the household is the subject of an open investigation of, or have 
134.19 	been the subject of a substantiated allegation of, child or vulnerable-adult maltreatment 
134.20 	within the past ten years. A complete description of the crime, open investigation, or 
134.21 	substantiated abuse, and a complete description of any sentence, treatment, or disposition 
134.22 	must be included. The affidavit must contain an acknowledgment that if, at any time 
134.23 	before the adoption is final, a court receives evidence leading to a conclusion that a 
134.24 	prospective adoptive parent knowingly gave false information in the affidavit, it shall be 
134.25 	determined that the adoption of the child by the prospective adoptive parent is not in the 
134.26 	best interests of the child.
134.27 	(f) For the purposes of subdivision 1 and section 259.47, subdivisions 3 and 6, an 
134.28 	adoption study is complete for placement, even though the background checks required by 
134.29 	paragraph (b) have not been completed, if each prospective adoptive parent has completed 
134.30 	the affidavit allowed by paragraph (e) and the other requirements of this section have been 
134.31 	met. The background checks required by paragraph (b) must be completed before an 
134.32 	adoption petition is filed. If an adoption study has been submitted to the court under section 
134.33 	259.47, subdivision 3 or 6, before the background checks required by paragraph (b) were 
134.34 	complete, an updated adoption study report which includes the results of the background 
134.35 	check must be filed with the adoption petition. In the event that an agency is unable to 
135.1 	complete any of the records checks required by paragraph (b), the agency shall submit with 
135.2 	the petition to adopt an affidavit documenting the agency's efforts to complete the checks.
135.3 	(c) A home study under paragraph (b) used to consider placement of any child 
135.4 	on whose behalf Title IV-E adoption assistance payments are to be made must not be 
135.5 	approved if a background study reveals a felony conviction at any time for:
135.6 	(1) child abuse or neglect;
135.7 	(2) spousal abuse;
135.8 	(3) a crime against children, including child pornography; or
135.9 	(4) a crime involving violence, including rape, sexual assault, or homicide, but not 
135.10 	including other physical assault or battery.
135.11 	(d) A home study under paragraph (b) used to consider placement of any child 
135.12 	on whose behalf Title IV-E adoption assistance payments are to be made must not be 
135.13 	approved if a background study reveals a felony conviction within the past five years for:
135.14 	(1) physical assault or battery; or
135.15 	(2) a drug-related offense.
135.16 		Subd. 4.Updates to adoption study; period of validity. An agency may update 
135.17 	an adoption study and report as needed, regardless of when the original study and report 
135.18 	or most recent update was completed. An update must be in a format specified by the 
135.19 	commissioner and must verify the continuing accuracy of the elements of the original 
135.20 	report and document any changes to elements of the original report. An update to a study 
135.21 	and report not originally completed under this section must ensure that the study and 
135.22 	report, as updated, meet the requirements of this section. An adoption study is valid if the 
135.23 	report has been completed or updated within the previous 12 months.

135.24 	Sec. 27. Minnesota Statutes 2006, section 259.53, subdivision 2, is amended to read:
135.25 		Subd. 2.Adoption agencies; postplacement assessment and report. (a) The 
135.26 	agency to which the petition has been referred under subdivision 1 shall conduct a 
135.27 	postplacement assessment and file a report with the court within 90 days of receipt 
135.28 	of a copy of the adoption petition. The agency shall send a copy of the report to the 
135.29 	commissioner at the time it files the report with the court. The assessment and report 
135.30 	must evaluate the environment and antecedents of the child to be adopted, the home of 
135.31 	the petitioners, whether placement with the petitioners meets the needs of the child as 
135.32 	described in section 259.57, subdivision 2. The report must include a recommendation to 
135.33 	the court as to whether the petition should or should not be granted. 
135.34 	In making evaluations and recommendations, the postplacement assessment and 
135.35 	report must, at a minimum, address the following:
136.1 	(1) the level of adaptation by the prospective adoptive parents to parenting the child;
136.2 	(2) the health and well-being of the child in the prospective adoptive parents' home;
136.3 	(3) the level of incorporation by the child into the prospective adoptive parents' 
136.4 	home, extended family, and community; and
136.5 	(4) the level of inclusion of the child's previous history into the prospective adoptive 
136.6 	home, such as cultural or ethnic practices, or contact with former foster parents or 
136.7 	biological relatives.
136.8 	(b) A postplacement adoption report is valid for 12 months following its date 
136.9 	of completion.
136.10 	(c) If the petitioner is an individual who is related to the child, as defined by section 
136.11 	245A.02, subdivision 13, the agency, as part of its postplacement assessment and report 
136.12 	under paragraph (a), shall conduct a background check meeting the requirements of 
136.13 	section 259.41, subdivision 3, paragraph (b). The prospective adoptive parent shall 
136.14 	cooperate in the completion of the background check by supplying the information and 
136.15 	authorizations described in section 259.41, subdivision 3, paragraph (a).
136.16 	(d) (c) If the report recommends that the court not grant the petition to adopt the 
136.17 	child, the provisions of this paragraph apply. Unless the assessment and report were 
136.18 	completed by the local social services agency, the agency completing the report, at the 
136.19 	time it files the report with the court under paragraph (a), must provide a copy of the report 
136.20 	to the local social services agency in the county where the prospective adoptive parent 
136.21 	lives. The agency or local social services agency may recommend that the court dismiss 
136.22 	the petition. If the local social services agency determines that continued placement in the 
136.23 	home endangers the child's physical or emotional health, the agency shall seek a court 
136.24 	order to remove the child from the home.
136.25 	(e) (d) If, through no fault of the petitioner, the agency to whom the petition was 
136.26 	referred under subdivision 1, paragraph (b), fails to complete the assessment and file the 
136.27 	report within 90 days of the date it received a copy of the adoption petition, the court may 
136.28 	hear the petition upon giving the agency and the local social services agency, if different, 
136.29 	five days' notice by mail of the time and place of the hearing.

136.30 	Sec. 28. Minnesota Statutes 2006, section 259.57, subdivision 2, is amended to read:
136.31 		Subd. 2.Protection of child's best interests. (a) The policy of the state of 
136.32 	Minnesota is to ensure that the best interests of children are met by requiring an 
136.33 	individualized determination of the needs of the child and how the adoptive placement 
136.34 	will serve the needs of the child.
137.1 	(b) Among the factors the court shall consider in determining the needs of the child 
137.2 	are those specified under section 260C.193, subdivision 3, paragraph (b). Consistent with 
137.3 	section 245C.33 and Public Law 109-248, a complete background study is required before 
137.4 	the approval of an adoptive placement in a home. 
137.5 	(c) In reviewing adoptive placement and in determining appropriate adoption, 
137.6 	the court shall consider placement, consistent with the child's best interests and in the 
137.7 	following order, with (1) a relative or relatives of the child, or (2) an important friend with 
137.8 	whom the child has resided or had significant contact. Placement of a child cannot be 
137.9 	delayed or denied based on race, color, or national origin of the adoptive parent or the 
137.10 	child. Whenever possible, siblings should be placed together unless it is determined 
137.11 	not to be in the best interests of a sibling.
137.12 	(d) If the child's birth parent or parents explicitly request that relatives and important 
137.13 	friends not be considered, the court shall honor that request consistent with the best 
137.14 	interests of the child.
137.15 	If the child's birth parent or parents express a preference for placing the child in an 
137.16 	adoptive home of the same or a similar religious background to that of the birth parent 
137.17 	or parents, the court shall place the child with a family that also meets the birth parent's 
137.18 	religious preference. Only if no family is available as described in clause (a) or (b) 
137.19 	may the court give preference to a family described in clause (c) that meets the parent's 
137.20 	religious preference.
137.21 	(e) This subdivision does not affect the Indian Child Welfare Act, United States 
137.22 	Code, title 25, sections 1901 to 1923, and the Minnesota Indian Family Preservation 
137.23 	Act, sections 260.751 to 260.835.

137.24 	Sec. 29. Minnesota Statutes 2006, section 260C.209, is amended to read:
137.25 	260C.209 BACKGROUND CHECKS.
137.26 		Subdivision 1.Subjects. The responsible social services agency must conduct
137.27 	initiate a background check study to be completed by the commissioner under this section 
137.28 	of chapter 245C on the following individuals:
137.29 	(1) a noncustodial parent or nonadjudicated parent who is being assessed for 
137.30 	purposes of providing day-to-day care of a child temporarily or permanently under section 
137.31 	260C.212, subdivision 4, and any member of the parent's household who is over the age of 
137.32 	13 when there is a reasonable cause to believe that the parent or household member over 
137.33 	age 13 has a criminal history or a history of maltreatment of a child or vulnerable adult 
137.34 	which would endanger the child's health, safety, or welfare;
138.1 	(2) an individual whose suitability for relative placement under section 260C.212, 
138.2 	subdivision 5, is being determined and any member of the relative's household who is 
138.3 	over the age of 13 when:
138.4 	(i) the relative must be licensed for foster care; or
138.5 	(ii) the agency must conduct a background study is required under section 259.53, 
138.6 	subdivision 2; or
138.7 	(iii) the agency or the commissioner has reasonable cause to believe the relative 
138.8 	or household member over the age of 13 has a criminal history which would not make 
138.9 	transfer of permanent legal and physical custody to the relative under section 260C.201, 
138.10 	subdivision 11, in the child's best interest; and
138.11 	(3) a parent, following an out-of-home placement, when the responsible social 
138.12 	services agency has reasonable cause to believe that the parent has been convicted of a 
138.13 	crime directly related to the parent's capacity to maintain the child's health, safety, or 
138.14 	welfare or the parent is the subject of an open investigation of, or has been the subject 
138.15 	of a substantiated allegation of, child or vulnerable-adult maltreatment within the past 
138.16 	ten years.
138.17 	"Reasonable cause" means that the agency has received information or a report from the 
138.18 	subject or a third person that creates an articulable suspicion that the individual has a 
138.19 	history that may pose a risk to the health, safety, or welfare of the child. The information 
138.20 	or report must be specific to the potential subject of the background check and shall not 
138.21 	be based on the race, religion, ethnic background, age, class, or lifestyle of the potential 
138.22 	subject.
138.23 		Subd. 2.General procedures. (a) When conducting initiating a background check 
138.24 	under subdivision 1, the agency may shall require the individual being assessed to provide 
138.25 	sufficient information to ensure an accurate assessment under this section, including:
138.26 	(1) the individual's first, middle, and last name and all other names by which the 
138.27 	individual has been known;
138.28 	(2) home address, zip code, city, county, and state of residence for the past ten five
138.29 	years;
138.30 	(3) sex;
138.31 	(4) date of birth; and
138.32 	(5) driver's license number or state identification number.
138.33 	(b) When notified by the commissioner or the responsible social services agency that 
138.34 	it is conducting an assessment under this section, the Bureau of Criminal Apprehension, 
138.35 	commissioners of health and human services, law enforcement, and county agencies must 
138.36 	provide the commissioner or the responsible social services agency or county attorney 
139.1 	with the following information on the individual being assessed: criminal history data, 
139.2 	reports about the maltreatment of adults substantiated under section 626.557, and reports 
139.3 	of maltreatment of minors substantiated under section 626.556.
139.4 		Subd. 3.Multistate information. (a) For any assessment every background study
139.5 	completed under this section, if the responsible social services agency has reasonable 
139.6 	cause to believe that the individual is a multistate offender, the individual must the subject 
139.7 	of the background study shall provide the responsible social services agency or the 
139.8 	county attorney with a set of classifiable fingerprints obtained from an authorized law 
139.9 	enforcement agency. The responsible social services agency or county attorney may shall 
139.10 	provide the fingerprints to the commissioner, and the commissioner shall obtain criminal 
139.11 	history data from the National Criminal Records Repository by submitting the fingerprints 
139.12 	to the Bureau of Criminal Apprehension.
139.13 	(b) For purposes of this subdivision, the responsible social services agency has 
139.14 	reasonable cause when, but not limited to:
139.15 	(1) information from the Bureau of Criminal Apprehension indicates that the 
139.16 	individual is a multistate offender;
139.17 	(2) information from the Bureau of Criminal Apprehension indicates that multistate 
139.18 	offender status is undetermined;
139.19 	(3) the social services agency has received a report from the individual or a third 
139.20 	party indicating that the individual has a criminal history in a jurisdiction other than 
139.21 	Minnesota; or
139.22 	(4) the individual is or has been a resident of a state other than Minnesota at any 
139.23 	time during the prior ten years.
139.24 		Subd. 4.Notice upon receipt. The responsible social services agency commissioner
139.25 	must provide the subject of the background study with the results of the study as required
139.26 	under this section within 15 business days of receipt or at least 15 days prior to the hearing 
139.27 	at which the results will be presented, whichever comes first. The subject may provide 
139.28 	written information to the agency that the results are incorrect and may provide additional 
139.29 	or clarifying information to the agency and to the court through a party to the proceeding. 
139.30 	This provision does not apply to any background study conducted under chapters 245A 
139.31 	and chapter 245C.

139.32 	Sec. 30. Minnesota Statutes 2006, section 260C.212, subdivision 2, is amended to read:
139.33 		Subd. 2.Placement decisions based on best interest of the child. (a) The policy 
139.34 	of the state of Minnesota is to ensure that the child's best interests are met by requiring an 
139.35 	individualized determination of the needs of the child and of how the selected placement 
140.1 	will serve the needs of the child being placed. The authorized child-placing agency shall 
140.2 	place a child, released by court order or by voluntary release by the parent or parents, in 
140.3 	a family foster home selected by considering placement with relatives and important 
140.4 	friends in the following order:
140.5 	(1) with an individual who is related to the child by blood, marriage, or adoption; or
140.6 	(2) with an individual who is an important friend with whom the child has resided or 
140.7 	had significant contact.
140.8 	(b) Among the factors the agency shall consider in determining the needs of the 
140.9 	child are the following:
140.10 	(1) the child's current functioning and behaviors;
140.11 	(2) the medical, educational, and developmental needs of the child;
140.12 	(3) the child's history and past experience;
140.13 	(4) the child's religious and cultural needs;
140.14 	(5) the child's connection with a community, school, and church;
140.15 	(6) the child's interests and talents;
140.16 	(7) the child's relationship to current caretakers, parents, siblings, and relatives; and
140.17 	(8) the reasonable preference of the child, if the court, or the child-placing agency 
140.18 	in the case of a voluntary placement, deems the child to be of sufficient age to express 
140.19 	preferences.
140.20 	(c) Placement of a child cannot be delayed or denied based on race, color, or national 
140.21 	origin of the foster parent or the child.
140.22 	(d) Siblings should be placed together for foster care and adoption at the earliest 
140.23 	possible time unless it is determined not to be in the best interests of a sibling or unless it 
140.24 	is not possible after appropriate efforts by the responsible social services agency.
140.25 	(e) Except for emergency placement as provided for in section 245A.035, a 
140.26 	completed background study is required under section 245C.08 before the approval of a 
140.27 	foster placement in a related or unrelated home.

140.28 	Sec. 31. LICENSING MORATORIUM.
 140.29 	A program operated by a nonpublic school for children 33 months or older is 
140.30 	exempt from the human services licensing requirements in Minnesota Statutes, chapter 
140.31 	245A, until July 1, 2009. Nothing in this section prohibits an already licensed nonpublic 
140.32 	school program from continuing its licensure or a nonpublic school program from seeking 
140.33 	licensure.

140.34 	EFFECTIVE DATE. This moratorium is effective the day following final 
140.35 	enactment.

141.1 	Sec. 32. ANNUAL LICENSE REVIEW.
 141.2 	The commissioner of human services shall work with counties to determine the cost 
141.3 	and propose an ongoing funding allocation from the general fund to cover the cost to 
141.4 	counties to implement an annual license review for licensed family child care providers. 
141.5 	The commissioner shall solicit input from counties to determine the outcome. The 
141.6 	commissioner shall report to the house and senate committees having jurisdiction over 
141.7 	early childhood programs by January 15, 2008, as to the costs and the funding allocation 
141.8 	recommended for future use.

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

141.10 	Sec. 33. EFFECTIVE DATE.
 141.11 	Changes made to sections in this article related to family child care are effective 
141.12 	January 1, 2008.

141.13 	ARTICLE 4
141.14 	HEALTH CARE POLICY

141.15 	Section 1. Minnesota Statutes 2006, section 16A.724, subdivision 2, is amended to 
141.16 	read:
141.17 		Subd. 2.Transfers. (a) Notwithstanding section 295.581, to the extent available 
141.18 	resources in the health care access fund exceed expenditures in that fund, effective with
141.19 	for the biennium beginning July 1, 2007, the commissioner of finance shall transfer the 
141.20 	excess funds from the health care access fund to the general fund on June 30 of each year, 
141.21 	provided that the amount transferred in any fiscal biennium shall not exceed $96,000,000.
141.22 	The purpose of this transfer is to meet the rate increase required under Laws 2003, First 
141.23 	Special Session chapter 14, article 13C, section 2, subdivision 6.
141.24 	(b) For fiscal years 2006 to 2009, MinnesotaCare shall be a forecasted program, and, 
141.25 	if necessary, the commissioner shall reduce these transfers from the health care access 
141.26 	fund to the general fund to meet annual MinnesotaCare expenditures or, if necessary, 
141.27 	transfer sufficient funds from the general fund to the health care access fund to meet 
141.28 	annual MinnesotaCare expenditures.

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

142.5 	Sec. 3. Minnesota Statutes 2006, section 256B.055, subdivision 14, is amended to read:
142.6 		Subd. 14.Persons detained by law. (a) Medical assistance may be paid for an 
142.7 	inmate of a correctional facility who is conditionally released as authorized under section 
142.8 	241.26, 244.065, or 631.425, if the individual does not require the security of a public 
142.9 	detention facility and is housed in a halfway house or community correction center, or 
142.10 	under house arrest and monitored by electronic surveillance in a residence approved 
142.11 	by the commissioner of corrections, and if the individual meets the other eligibility 
142.12 	requirements of this chapter.
142.13 	(b) An individual who is enrolled in medical assistance, and who is charged with a 
142.14 	crime and incarcerated for less than 12 months shall be suspended from eligibility at the 
142.15 	time of incarceration until the individual is released. Upon release, medical assistance 
142.16 	eligibility is reinstated without reapplication using a reinstatement process and form, if the 
142.17 	individual is otherwise eligible.
142.18 	(c) An individual, regardless of age, who is considered an inmate of a public 
142.19 	institution as defined in Code of Federal Regulations, title 42, section 435.1009, is not 
142.20 	eligible for medical assistance.

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

142.27 	Sec. 5. Minnesota Statutes 2006, section 256B.0625, subdivision 13c, is amended to 
142.28 	read:
142.29 		Subd. 13c.Formulary committee. The commissioner, after receiving 
142.30 	recommendations from professional medical associations and professional pharmacy 
142.31 	associations, and consumer groups shall designate a Formulary Committee to carry 
142.32 	out duties as described in subdivisions 13 to 13g. The Formulary Committee shall be 
142.33 	comprised of four licensed physicians actively engaged in the practice of medicine in 
143.1 	Minnesota one of whom must be actively engaged in the treatment of persons with mental 
143.2 	illness; at least three licensed pharmacists actively engaged in the practice of pharmacy 
143.3 	in Minnesota; and one consumer representative; the remainder to be made up of health 
143.4 	care professionals who are licensed in their field and have recognized knowledge in the 
143.5 	clinically appropriate prescribing, dispensing, and monitoring of covered outpatient drugs. 
143.6 	Members of the Formulary Committee shall not be employed by the Department of 
143.7 	Human Services, but the committee shall be staffed by an employee of the department 
143.8 	who shall serve as an ex officio, nonvoting member of the board committee. The 
143.9 	department's medical director shall also serve as an ex officio, nonvoting member for the 
143.10 	committee. Committee members shall serve three-year terms and may be reappointed 
143.11 	by the commissioner. The Formulary Committee shall meet at least quarterly. The 
143.12 	commissioner may require more frequent Formulary Committee meetings as needed. An 
143.13 	honorarium of $100 per meeting and reimbursement for mileage shall be paid to each 
143.14 	committee member in attendance.

143.15 	Sec. 6. Minnesota Statutes 2006, section 256B.0625, subdivision 13d, is amended to 
143.16 	read:
143.17 		Subd. 13d.Drug formulary. (a) The commissioner shall establish a drug 
143.18 	formulary. Its establishment and publication shall not be subject to the requirements of the 
143.19 	Administrative Procedure Act, but the Formulary Committee shall review and comment 
143.20 	on the formulary contents.
143.21 	(b) The formulary shall not include:
143.22 	(1) drugs or products for which there is no federal funding;
143.23 	(2) over-the-counter drugs, except as provided in subdivision 13;
143.24 	(3) drugs used for weight loss, except that medically necessary lipase inhibitors may 
143.25 	be covered for a recipient with type II diabetes;
143.26 	(4) drugs when used for the treatment of impotence or erectile dysfunction;
143.27 	(5) drugs for which medical value has not been established; and
143.28 	(6) drugs from manufacturers who have not signed a rebate agreement with the 
143.29 	Department of Health and Human Services pursuant to section 1927 of title XIX of the 
143.30 	Social Security Act.
143.31 	(c) If a single-source drug used by at least two percent of the fee-for-service 
143.32 	medical assistance recipients is removed from the formulary due to the failure of the 
143.33 	manufacturer to sign a rebate agreement with the Department of Health and Human 
143.34 	Services, the commissioner shall notify prescribing practitioners within 30 days of 
144.1 	receiving notification from the Centers for Medicare and Medicaid Services (CMS) that a 
144.2 	rebate agreement was not signed.

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

144.4 	Sec. 7. Minnesota Statutes 2006, section 256B.0625, is amended by adding a 
144.5 	subdivision to read:
144.6 		Subd. 49.Community health worker. (a) Medical assistance covers the care 
144.7 	coordination and patient education services provided by a community health worker if 
144.8 	the community health worker has: 
144.9 	(1) received a certificate from the Minnesota State Colleges and Universities System 
144.10 	approved community health worker curriculum; or
144.11 	(2) at least five years of supervised experience with an enrolled physician, registered 
144.12 	nurse, or advanced practice registered nurse.
144.13 	Community health workers eligible for payment under clause (2) must complete the 
144.14 	certification program by January 1, 2010, to continue to be eligible for payment.
144.15 	(b) Community health workers must work under the supervision of a medical 
144.16 	assistance enrolled physician, registered nurse, or advanced practice registered nurse.

144.17 	Sec. 8. Minnesota Statutes 2006, section 256L.03, subdivision 5, is amended to read:
144.18 		Subd. 5.Co-payments and coinsurance. (a) Except as provided in paragraphs (b) 
144.19 	and (c), the MinnesotaCare benefit plan shall include the following co-payments and 
144.20 	coinsurance requirements for all enrollees:
144.21 	(1) ten percent of the paid charges for inpatient hospital services for adult enrollees, 
144.22 	subject to an annual inpatient out-of-pocket maximum of $1,000 per individual and 
144.23 	$3,000 per family;
144.24 	(2) $3 per prescription for adult enrollees;
144.25 	(3) $25 for eyeglasses for adult enrollees;
144.26 	(4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an 
144.27 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
144.28 	established illness, and which is delivered in an ambulatory setting by a physician or 
144.29 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
144.30 	audiologist, optician, or optometrist; and
144.31 	(5) $6 for nonemergency visits to a hospital-based emergency room.
144.32 	(b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of 
144.33 	children under the age of 21 in households with family income equal to or less than 175 
145.1 	percent of the federal poverty guidelines. Paragraph (a), clause (1), does not apply to 
145.2 	parents and relative caretakers of children under the age of 21 in households with family 
145.3 	income greater than 175 percent of the federal poverty guidelines for inpatient hospital 
145.4 	admissions occurring on or after January 1, 2001.
145.5 	(c) Paragraph (a), clauses (1) to (4), dodoes not apply to pregnant women and 
145.6 	children under the age of 21.
145.7 	(d) Adult enrollees with family gross income that exceeds 175 percent of the 
145.8 	federal poverty guidelines and who are not pregnant shall be financially responsible for 
145.9 	the coinsurance amount, if applicable, and amounts which exceed the $10,000 inpatient 
145.10 	hospital benefit limit.
145.11 	(e) When a MinnesotaCare enrollee becomes a member of a prepaid health plan, 
145.12 	or changes from one prepaid health plan to another during a calendar year, any charges 
145.13 	submitted towards the $10,000 annual inpatient benefit limit, and any out-of-pocket 
145.14 	expenses incurred by the enrollee for inpatient services, that were submitted or incurred 
145.15 	prior to enrollment, or prior to the change in health plans, shall be disregarded.

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

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

146.3 	ARTICLE 5
146.4 	HEALTH CARE

146.5 	Section 1. Minnesota Statutes 2006, section 16A.724, subdivision 2, is amended to 
146.6 	read:
146.7 		Subd. 2.Transfers. (a) Notwithstanding section 295.581, to the extent available 
146.8 	resources in the health care access fund exceed expenditures in that fund, effective with
146.9 	for the biennium beginning July 1, 2007, the commissioner of finance shall transfer the 
146.10 	excess funds from the health care access fund to the general fund on June 30 of each year, 
146.11 	provided that the amount transferred in any fiscal biennium shall not exceed $96,000,000.
146.12 	The purpose of this transfer is to meet the rate increase required under Laws 2003, First 
146.13 	Special Session chapter 14, article 13C, section 2, subdivision 6.
146.14 	(b) For fiscal years 2006 to 2009 2011, MinnesotaCare shall be a forecasted 
146.15 	program, and, if necessary, the commissioner shall reduce these transfers from the health 
146.16 	care access fund to the general fund to meet annual MinnesotaCare expenditures or, if 
146.17 	necessary, transfer sufficient funds from the general fund to the health care access fund to 
146.18 	meet annual MinnesotaCare expenditures.

146.19 	Sec. 2. [256.962] MINNESOTA HEALTH CARE PROGRAMS OUTREACH.
146.20 		Subdivision 1.Public awareness and education. The commissioner, in consultation 
146.21 	with community organizations, health plans, and other public entities experienced in 
146.22 	outreach to the uninsured, shall design and implement a statewide campaign to raise public 
146.23 	awareness on the availability of health coverage through medical assistance, general 
146.24 	assistance medical care, and MinnesotaCare and to educate the public on the importance of 
146.25 	obtaining and maintaining health care coverage. The campaign shall include multimedia 
146.26 	messages directed to the general population.
146.27 		Subd. 2.Outreach grants. (a) The commissioner shall award grants to public and 
146.28 	private organizations, regional collaboratives, and regional health care outreach centers 
146.29 	for outreach activities, including, but not limited to: 
146.30 	(1) providing information, applications, and assistance in obtaining coverage 
146.31 	through Minnesota public health care programs;
146.32 	(2) collaborating with public and private entities such as hospitals, providers, health 
146.33 	plans, legal aid offices, pharmacies, insurance agencies, and faith-based organizations to 
146.34 	develop outreach activities and partnerships to ensure the distribution of information 
147.1 	and applications and provide assistance in obtaining coverage through Minnesota health 
147.2 	care programs; and
147.3 	(3) providing or collaborating with public and private entities to provide multilingual 
147.4 	and culturally specific information and assistance to applicants in areas of high 
147.5 	uninsurance in the state or populations with high rates of uninsurance.
147.6 	(b) The commissioner shall ensure that all outreach materials are available in 
147.7 	languages other than English.
147.8 	(c) The commissioner shall establish an outreach trainer program to provide 
147.9 	training to designated individuals from the community and public and private entities on 
147.10 	application assistance in order for these individuals to provide training to others in the 
147.11 	community on an as-needed basis.
147.12 		Subd. 3. Application and assistance. (a) The Minnesota health care programs 
147.13 	application must be made available at provider offices, local human services agencies, 
147.14 	school districts, public and private elementary schools in which 25 percent or more of 
147.15 	the students receive free or reduced price lunches, community health offices, Women, 
147.16 	Infants and Children (WIC) program sites, Head Start program sites, public housing 
147.17 	councils, child care centers, early childhood education and preschool program sites, legal 
147.18 	aid offices, and libraries. The commissioner shall ensure that applications are available 
147.19 	in languages other than English.
147.20 	(b) Local human service agencies, hospitals, and health care community clinics 
147.21 	receiving state funds must provide direct assistance in completing the application 
147.22 	form, including the free use of a copy machine and a drop box for applications. These 
147.23 	locations must ensure that the drop box is checked at least weekly and any applications 
147.24 	are submitted to the commissioner. The commissioner shall provide these entities with 
147.25 	an identification number to stamp on each application to identify the entity that provided 
147.26 	assistance. Other locations where applications are required to be available shall either 
147.27 	provide direct assistance in completing the application form or provide information on 
147.28 	where an applicant can receive application assistance.
147.29 	(c) Counties must offer applications and application assistance when providing 
147.30 	child support collection services.
147.31 	(d) Local public health agencies and counties that provide immunization clinics must 
147.32 	offer applications and application assistance during these clinics.
147.33 	(e) The commissioner shall coordinate with the commissioner of health to ensure 
147.34 	that maternal and child health outreach efforts include information on Minnesota health 
147.35 	care programs and application assistance, when needed.
148.1 		Subd. 4.Statewide toll-free telephone number. The commissioner shall provide 
148.2 	funds for a statewide toll-free telephone number to provide information on public and 
148.3 	private health coverage options and sources of free and low-cost health care. The 
148.4 	statewide telephone number must provide the option of obtaining this information in 
148.5 	languages other than English.
148.6 		Subd. 5.Incentive program. The commissioner shall establish an incentive 
148.7 	program for organizations that directly identify and assist potential enrollees in filling 
148.8 	out and submitting an application. For each applicant who is successfully enrolled in 
148.9 	MinnesotaCare, medical assistance, or general assistance medical care, the commissioner 
148.10 	shall pay the organization a $25 application assistance bonus. The organization may 
148.11 	provide an applicant a gift certificate or other incentive upon enrollment.
148.12 		Subd. 6.School districts. (a) At the beginning of each school year, a school district 
148.13 	shall provide information to each student on the availability of health care coverage 
148.14 	through the Minnesota health care programs.
148.15 	(b) For each child who is determined to be eligible for a free or reduced priced lunch, 
148.16 	the district shall provide the child's family with an application for the Minnesota health 
148.17 	care programs and information on how to obtain application assistance.
148.18 	(c) A district shall also ensure that applications and information on application 
148.19 	assistance are available at early childhood education sites and public schools located 
148.20 	within the district's jurisdiction. 
148.21 	(d) Each district shall designate an enrollment specialist to provide application 
148.22 	assistance and follow-up services with families who are eligible for the reduced or free 
148.23 	lunch program or who have indicated an interest in receiving information or an application 
148.24 	for the Minnesota health care program.
148.25 	(e) Each school district shall provide on their Web site a link to information on how 
148.26 	to obtain an application and application assistance.
148.27 		Subd. 7.Renewal notice. (a) Beginning December 1, 2007, the commissioner shall 
148.28 	mail a renewal notice to enrollees notifying the enrollees that the enrollees eligibility must 
148.29 	be renewed. A notice shall be sent at least 90 days prior to the renewal date and at least 
148.30 	60 days prior to the renewal date.
148.31 	(b) For enrollees who are receiving services through managed care plans, the 
148.32 	managed care plan must provide a follow-up renewal call at least 60 days prior to the 
148.33 	enrollees' renewal dates.
148.34 	(c) The commissioner shall include the end of coverage dates on the monthly rosters 
148.35 	of enrollees provided to managed care organizations.
149.1 		Subd. 8.MinnesotaCare small employer buy-in option. The commissioner shall 
149.2 	provide information on the small employer buy-in option for MinnesotaCare to insurance 
149.3 	agents and local chambers of commerce.

149.4 	Sec. 3. [256.963] PRIMARY CARE ACCESS INITIATIVE.
149.5 		Subdivision 1.Establishment. (a) The commissioner shall award a grant to 
149.6 	implement in Hennepin and Ramsey Counties a Web-based primary care access pilot 
149.7 	project designed as a collaboration between private and public sectors to connect, where 
149.8 	appropriate, a patient with a primary care medical home, and schedule patients into 
149.9 	available community-based appointments as an alternative to nonemergency use of the 
149.10 	hospital emergency room. The grantee must establish a program that diverts patients 
149.11 	presenting at an emergency room for nonemergency care to more appropriate outpatient 
149.12 	settings. The program must refer the patient to an appropriate health care professional 
149.13 	based on the patient's health care needs and situation. The program must provide the 
149.14 	patient with a scheduled appointment that is timely, with an appropriate provider who is 
149.15 	conveniently located. If the patient is uninsured and potentially eligible for a Minnesota 
149.16 	health care program, the program must connect the patient to a primary care provider, 
149.17 	community clinic, or agency that can assist the patient with the application process. The 
149.18 	program must also ensure that discharged patients are connected with a community-based 
149.19 	primary care provider and assist in scheduling any necessary follow-up visits before 
149.20 	the patient is discharged.
149.21 	(b) The program must not require a provider to pay a fee for accepting charity care 
149.22 	patients or patients enrolled in a Minnesota public health care program.
149.23 		Subd. 2.Evaluation. (a) The grantee must report to the commissioner on a quarterly 
149.24 	basis the following information:
149.25 	(1) the total number of appointments available for scheduling by specialty;
149.26 	(2) the average length of time between scheduling and actual appointment;  
149.27 	(3) the total number of patients referred and whether the patient was insured or 
149.28 	uninsured; and
149.29 	(4) the total number of appointments resulting in visits completed and number of 
149.30 	patients continuing services with the referring clinic.
149.31 	(b) The commissioner, in consultation with the Minnesota Hospital Association, 
149.32 	shall conduct an evaluation of the emergency room diversion pilot project and submit the 
149.33 	results to the legislature by January 15, 2009. The evaluation shall compare the number of 
149.34 	nonemergency visits and repeat visits to hospital emergency rooms for the period before 
150.1 	the commencement of the project and one year after the commencement, and an estimate 
150.2 	of the costs saved from any documented reductions.

150.3 	Sec. 4. Minnesota Statutes 2006, section 256.969, subdivision 3a, is amended to read:
150.4 		Subd. 3a.Payments. (a) Acute care hospital billings under the medical 
150.5 	assistance program must not be submitted until the recipient is discharged. However, 
150.6 	the commissioner shall establish monthly interim payments for inpatient hospitals that 
150.7 	have individual patient lengths of stay over 30 days regardless of diagnostic category. 
150.8 	Except as provided in section 256.9693, medical assistance reimbursement for treatment 
150.9 	of mental illness shall be reimbursed based on diagnostic classifications. Individual 
150.10 	hospital payments established under this section and sections 256.9685, 256.9686, and 
150.11 	256.9695, in addition to third party and recipient liability, for discharges occurring during 
150.12 	the rate year shall not exceed, in aggregate, the charges for the medical assistance covered 
150.13 	inpatient services paid for the same period of time to the hospital. This payment limitation 
150.14 	shall be calculated separately for medical assistance and general assistance medical 
150.15 	care services. The limitation on general assistance medical care shall be effective for 
150.16 	admissions occurring on or after July 1, 1991. Services that have rates established under 
150.17 	subdivision 11 or 12, must be limited separately from other services. After consulting with 
150.18 	the affected hospitals, the commissioner may consider related hospitals one entity and 
150.19 	may merge the payment rates while maintaining separate provider numbers. The operating 
150.20 	and property base rates per admission or per day shall be derived from the best Medicare 
150.21 	and claims data available when rates are established. The commissioner shall determine 
150.22 	the best Medicare and claims data, taking into consideration variables of recency of the 
150.23 	data, audit disposition, settlement status, and the ability to set rates in a timely manner. 
150.24 	The commissioner shall notify hospitals of payment rates by December 1 of the year 
150.25 	preceding the rate year. The rate setting data must reflect the admissions data used to 
150.26 	establish relative values. Base year changes from 1981 to the base year established for the 
150.27 	rate year beginning January 1, 1991, and for subsequent rate years, shall not be limited 
150.28 	to the limits ending June 30, 1987, on the maximum rate of increase under subdivision 
150.29 	1. The commissioner may adjust base year cost, relative value, and case mix index data 
150.30 	to exclude the costs of services that have been discontinued by the October 1 of the year 
150.31 	preceding the rate year or that are paid separately from inpatient services. Inpatient stays 
150.32 	that encompass portions of two or more rate years shall have payments established based 
150.33 	on payment rates in effect at the time of admission unless the date of admission preceded 
150.34 	the rate year in effect by six months or more. In this case, operating payment rates for 
151.1 	services rendered during the rate year in effect and established based on the date of 
151.2 	admission shall be adjusted to the rate year in effect by the hospital cost index.
151.3 	(b) For fee-for-service admissions occurring on or after July 1, 2002, the total 
151.4 	payment, before third-party liability and spenddown, made to hospitals for inpatient 
151.5 	services is reduced by .5 percent from the current statutory rates.
151.6 	(c) In addition to the reduction in paragraph (b), the total payment for fee-for-service 
151.7 	admissions occurring on or after July 1, 2003, made to hospitals for inpatient services 
151.8 	before third-party liability and spenddown, is reduced five percent from the current 
151.9 	statutory rates. Mental health services within diagnosis related groups 424 to 432, and
151.10 	facilities defined under subdivision 16, and, effective for admissions occurring on or after 
151.11 	July 1, 2007, a long-term hospital as designated by the Medicare program that is located in 
151.12 	a city of the first class as defined in section 410.01, are excluded from this paragraph.
151.13 	(d) In addition to the reduction in paragraphs (b) and (c), the total payment for 
151.14 	fee-for-service admissions occurring on or after July 1, 2005, made to hospitals for 
151.15 	inpatient services before third-party liability and spenddown, is reduced 6.0 percent from 
151.16 	the current statutory rates. Mental health services within diagnosis related groups 424 to 
151.17 	432 and, facilities defined under subdivision 16, and, effective for admissions occurring 
151.18 	on or after July 1, 2007, a long-term hospital as designated by the Medicare program 
151.19 	that is located in a city of the first class as defined in section 410.01, are excluded from 
151.20 	this paragraph. Notwithstanding section 256.9686, subdivision 7, for purposes of this 
151.21 	paragraph, medical assistance does not include general assistance medical care. Payments 
151.22 	made to managed care plans shall be reduced for services provided on or after January 
151.23 	1, 2006, to reflect this reduction.

151.24 	Sec. 5. Minnesota Statutes 2006, section 256.969, subdivision 9, is amended to read:
151.25 		Subd. 9.Disproportionate numbers of low-income patients served. (a) For 
151.26 	admissions occurring on or after October 1, 1992, through December 31, 1992, the 
151.27 	medical assistance disproportionate population adjustment shall comply with federal law 
151.28 	and shall be paid to a hospital, excluding regional treatment centers and facilities of the 
151.29 	federal Indian Health Service, with a medical assistance inpatient utilization rate in excess 
151.30 	of the arithmetic mean. The adjustment must be determined as follows:
151.31 	(1) for a hospital with a medical assistance inpatient utilization rate above the 
151.32 	arithmetic mean for all hospitals excluding regional treatment centers and facilities of the 
151.33 	federal Indian Health Service but less than or equal to one standard deviation above the 
151.34 	mean, the adjustment must be determined by multiplying the total of the operating and 
151.35 	property payment rates by the difference between the hospital's actual medical assistance 
152.1 	inpatient utilization rate and the arithmetic mean for all hospitals excluding regional 
152.2 	treatment centers and facilities of the federal Indian Health Service; and
152.3 	(2) for a hospital with a medical assistance inpatient utilization rate above one 
152.4 	standard deviation above the mean, the adjustment must be determined by multiplying 
152.5 	the adjustment that would be determined under clause (1) for that hospital by 1.1. If 
152.6 	federal matching funds are not available for all adjustments under this subdivision, the 
152.7 	commissioner shall reduce payments on a pro rata basis so that all adjustments qualify for 
152.8 	federal match. The commissioner may establish a separate disproportionate population 
152.9 	operating payment rate adjustment under the general assistance medical care program. 
152.10 	For purposes of this subdivision medical assistance does not include general assistance 
152.11 	medical care. The commissioner shall report annually on the number of hospitals likely to 
152.12 	receive the adjustment authorized by this paragraph. The commissioner shall specifically 
152.13 	report on the adjustments received by public hospitals and public hospital corporations 
152.14 	located in cities of the first class.
152.15 	(b) For admissions occurring on or after July 1, 1993, the medical assistance 
152.16 	disproportionate population adjustment shall comply with federal law and shall be paid to 
152.17 	a hospital, excluding regional treatment centers and facilities of the federal Indian Health 
152.18 	Service, with a medical assistance inpatient utilization rate in excess of the arithmetic 
152.19 	mean. The adjustment must be determined as follows:
152.20 	(1) for a hospital with a medical assistance inpatient utilization rate above the 
152.21 	arithmetic mean for all hospitals excluding regional treatment centers and facilities of the 
152.22 	federal Indian Health Service but less than or equal to one standard deviation above the 
152.23 	mean, the adjustment must be determined by multiplying the total of the operating and 
152.24 	property payment rates by the difference between the hospital's actual medical assistance 
152.25 	inpatient utilization rate and the arithmetic mean for all hospitals excluding regional 
152.26 	treatment centers and facilities of the federal Indian Health Service;
152.27 	(2) for a hospital with a medical assistance inpatient utilization rate above one 
152.28 	standard deviation above the mean, the adjustment must be determined by multiplying 
152.29 	the adjustment that would be determined under clause (1) for that hospital by 1.1. The 
152.30 	commissioner may establish a separate disproportionate population operating payment 
152.31 	rate adjustment under the general assistance medical care program. For purposes of this 
152.32 	subdivision, medical assistance does not include general assistance medical care. The 
152.33 	commissioner shall report annually on the number of hospitals likely to receive the 
152.34 	adjustment authorized by this paragraph. The commissioner shall specifically report on 
152.35 	the adjustments received by public hospitals and public hospital corporations located 
152.36 	in cities of the first class;
153.1 	(3) for a hospital that had medical assistance fee-for-service payment volume during 
153.2 	calendar year 1991 in excess of 13 percent of total medical assistance fee-for-service 
153.3 	payment volume, a medical assistance disproportionate population adjustment shall be 
153.4 	paid in addition to any other disproportionate payment due under this subdivision as 
153.5 	follows: $1,515,000 due on the 15th of each month after noon, beginning July 15, 1995. 
153.6 	For a hospital that had medical assistance fee-for-service payment volume during calendar 
153.7 	year 1991 in excess of eight percent of total medical assistance fee-for-service payment 
153.8 	volume and was the primary hospital affiliated with the University of Minnesota, a 
153.9 	medical assistance disproportionate population adjustment shall be paid in addition to any 
153.10 	other disproportionate payment due under this subdivision as follows: $505,000 due on 
153.11 	the 15th of each month after noon, beginning July 15, 1995; and
153.12 	(4) effective August 1, 2005, the payments in paragraph (b), clause (3), shall be 
153.13 	reduced to zero.
153.14 	(c) The commissioner shall adjust rates paid to a health maintenance organization 
153.15 	under contract with the commissioner to reflect rate increases provided in paragraph (b), 
153.16 	clauses (1) and (2), on a nondiscounted hospital-specific basis but shall not adjust those 
153.17 	rates to reflect payments provided in clause (3).
153.18 	(d) If federal matching funds are not available for all adjustments under paragraph 
153.19 	(b), the commissioner shall reduce payments under paragraph (b), clauses (1) and (2), on a 
153.20 	pro rata basis so that all adjustments under paragraph (b) qualify for federal match.
153.21 	(e) For purposes of this subdivision, medical assistance does not include general 
153.22 	assistance medical care.
153.23 	(f) For hospital services occurring on or after July 1, 2005, to June 30, 2007, :
153.24 	(1) general assistance medical care expenditures for fee-for-service inpatient 
153.25 	and outpatient hospital payments made by the department and by prepaid health 
153.26 	plans participating in general assistance medical care shall be considered Medicaid 
153.27 	disproportionate share hospital payments, except as limited below:
153.28 	(1) (i) only the portion of Minnesota's disproportionate share hospital allotment 
153.29 	under section 1923(f) of the Social Security Act that is not spent on the disproportionate 
153.30 	population adjustments in paragraph (b), clauses (1) and (2), may be used for general 
153.31 	assistance medical care expenditures;
153.32 	(2) (ii) only those general assistance medical care expenditures made to hospitals that 
153.33 	qualify for disproportionate share payments under section 1923 of the Social Security Act 
153.34 	and the Medicaid state plan may be considered disproportionate share hospital payments;
154.1 	(3) (iii) only those general assistance medical care expenditures made to an 
154.2 	individual hospital that would not cause the hospital to exceed its individual hospital limits 
154.3 	under section 1923 of the Social Security Act may be considered; and
154.4 	(4) (iv) general assistance medical care expenditures may be considered only to the 
154.5 	extent of Minnesota's aggregate allotment under section 1923 of the Social Security Act.
154.6 	All hospitals and prepaid health plans participating in general assistance medical care 
154.7 	must provide any necessary expenditure, cost, and revenue information required by the 
154.8 	commissioner as necessary for purposes of obtaining federal Medicaid matching funds for 
154.9 	general assistance medical care expenditures; and
154.10 	(2) certified public expenditures made by Hennepin County Medical Center shall 
154.11 	be considered Medicaid disproportionate share hospital payments. Hennepin County 
154.12 	and Hennepin County Medical Center shall report by June 15, 2007, on payments made 
154.13 	beginning July 1, 2005, or another date specified by the commissioner, that may qualify 
154.14 	for reimbursement under federal law. Based on these reports, the commissioner shall 
154.15 	apply for federal matching funds.
154.16 	(g) Upon federal approval of the related state plan amendment, paragraph (f) is 
154.17 	effective retroactively from July 1, 2005, or the earliest effective date approved by the 
154.18 	Centers for Medicare and Medicaid Services.

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

154.20 	Sec. 6. Minnesota Statutes 2006, section 256.969, subdivision 27, is amended to read:
154.21 		Subd. 27.Quarterly payment adjustment. (a) In addition to any other payment 
154.22 	under this section, the commissioner shall make the following payments effective July 
154.23 	1, 2007:
154.24 	(1) for a hospital located in Minnesota and not eligible for payments under 
154.25 	subdivision 20, with a medical assistance inpatient utilization rate greater than 17.8 
154.26 	percent of total patient days as of the base year in effect on July 1, 2005, a payment equal 
154.27 	to 13 percent of the total of the operating and property payment rates;
154.28 	(2) for a hospital located in Minnesota in a specified urban area outside of the 
154.29 	seven-county metropolitan area and not eligible for payments under subdivision 20, with 
154.30 	a medical assistance inpatient utilization rate less than or equal to 17.8 percent of total 
154.31 	patient days as of the base year in effect on July 1, 2005, a payment equal to ten percent 
154.32 	of the total of the operating and property payment rates. For purposes of this clause, the 
154.33 	following cities are specified urban areas: Detroit Lakes, Rochester, Willmar, Alexandria, 
155.1 	Austin, Cambridge, Brainerd, Hibbing, Mankato, Duluth, St. Cloud, Grand Rapids, 
155.2 	Wyoming, Fergus Falls, Albert Lea, Winona, Virginia, Thief River Falls, and Wadena; and
155.3 	(3) for a hospital located in Minnesota but not located in a specified urban area under 
155.4 	clause (2), with a medical assistance inpatient utilization rate less than or equal to 17.8 
155.5 	percent of total patient days as of the base year in effect on July 1, 2005, a payment equal to 
155.6 	four percent of the total of the operating and property payment rates. A hospital located in 
155.7 	Woodbury and not in existence during the base year shall be reimbursed under this clause.
155.8 	(b) The state share of payments under paragraph (a) shall be equal to federal 
155.9 	reimbursements to the commissioner to reimburse nonstate expenditures reported under 
155.10 	section 256B.199. The commissioner shall ratably reduce or increase payments under this 
155.11 	subdivision in order to ensure that these payments equal the amount of reimbursement 
155.12 	received by the commissioner under section 256B.199, except that payments shall be 
155.13 	ratably reduced by an amount equivalent to the state share of a four percent reduction in 
155.14 	MinnesotaCare and medical assistance payments for inpatient hospital services. Effective 
155.15 	July 1, 2009, the ratable reduction shall be equivalent to the state share of a three percent 
155.16 	reduction in these payments.
155.17 	(c) The payments under paragraph (a) shall be paid quarterly based on each hospital's 
155.18 	operating and property payments from the second previous quarter, beginning on July 
155.19 	15, 2007, or upon federal approval of federal reimbursements under section 256B.199, 
155.20 	whichever occurs later.
155.21 	(d) The commissioner shall not adjust rates paid to a prepaid health plan under 
155.22 	contract with the commissioner to reflect payments provided in paragraph (a).
155.23 	(e) The commissioner shall maximize the use of available federal money for 
155.24 	disproportionate share hospital payments and shall maximize payments to qualifying 
155.25 	hospitals. In order to accomplish these purposes, the commissioner may, in consultation 
155.26 	with the nonstate entities identified in section 256B.199, adjust, on a pro rata basis 
155.27 	if feasible, the amounts reported by nonstate entities under section 256B.199 when 
155.28 	application for reimbursement is made to the federal government, and otherwise adjust 
155.29 	the provisions of this subdivision. The commissioner shall utilize a settlement process 
155.30 	based on finalized data to maximize revenue under section 256B.199 and payments 
155.31 	under this section.
155.32 	(f) By January 15 of each year, beginning January 15, 2006, the commissioner 
155.33 	shall report to the chairs of the house and senate finance committees and divisions with 
155.34 	jurisdiction over funding for the Department of Human Services the following estimates 
155.35 	for the current and upcoming federal and state fiscal years:
156.1 	(1) the difference between the Medicare upper payment limit and actual or 
156.2 	anticipated medical assistance payments for hospital services;
156.3 	(2) the amount of federal disproportionate share hospital funding available to 
156.4 	Minnesota and the amount expected to be claimed by the state; and
156.5 	(3) the methodology used to calculate the results reported for clauses (1) and (2).
156.6 	(g) For purposes of this subdivision, medical assistance does not include general 
156.7 	assistance medical care.
156.8 	(h) This section sunsets on June 30, 2009. The commissioner shall report to 
156.9 	the legislature by December 15, 2008, with recommendations for maximizing federal 
156.10 	disproportionate share hospital payments after June 30, 2009.

156.11 	Sec. 7. Minnesota Statutes 2006, section 256.969, is amended by adding a subdivision 
156.12 	to read:
156.13 		Subd. 28.Long-term hospital payment adjustment. For admissions occurring on 
156.14 	or after July 1, 2007, the commissioner shall increase the medical assistance payments 
156.15 	to a long-term hospital with a medical assistance inpatient utilization rate of 17.95 
156.16 	percent of total patient days as of the base year in effect on July 1, 2005, by an amount 
156.17 	equal to 13 percent of the total of the operating and property payment rates. Payments 
156.18 	made to managed care plans shall not reflect this payment increase. For purposes of 
156.19 	this subdivision, medical assistance does not include general assistance medical care. 
156.20 	Payments to a hospital under this subdivision shall be reduced by the amount of any 
156.21 	payments made under subdivision 27. 

156.22 	Sec. 8. Minnesota Statutes 2006, section 256B.04, subdivision 14, is amended to read:
156.23 		Subd. 14.Competitive bidding. (a) When determined to be effective, economical, 
156.24 	and feasible, the commissioner may utilize volume purchase through competitive bidding 
156.25 	and negotiation under the provisions of chapter 16C, to provide items under the medical 
156.26 	assistance program including but not limited to the following:
156.27 	(1) eyeglasses;
156.28 	(2) oxygen. The commissioner shall provide for oxygen needed in an emergency 
156.29 	situation on a short-term basis, until the vendor can obtain the necessary supply from 
156.30 	the contract dealer;
156.31 	(3) hearing aids and supplies; and
156.32 	(4) durable medical equipment, including but not limited to:
156.33 	(i) hospital beds;
156.34 	(ii) commodes;
157.1 	(iii) glide-about chairs;
157.2 	(iv) patient lift apparatus;
157.3 	(v) wheelchairs and accessories;
157.4 	(vi) oxygen administration equipment;
157.5 	(vii) respiratory therapy equipment;
157.6 	(viii) electronic diagnostic, therapeutic and life support systems;
157.7 	(5) specialnonemergency medical transportation services level of need 
157.8 	determinations, disbursement of public transportation passes and tokens, and volunteer 
157.9 	and recipient mileage and parking reimbursements; and
157.10 	(6) drugs.
157.11 	(b) Rate changes under this chapter and chapters 256D and 256L do not affect 
157.12 	contract payments under this subdivision unless specifically identified.
157.13 	(c) The commissioner may not utilize volume purchase through competitive bidding 
157.14 	and negotiation for special transportation services under the provisions of chapter 16C.

157.15 	Sec. 9. Minnesota Statutes 2006, section 256B.04, is amended by adding a subdivision 
157.16 	to read:
157.17 		Subd. 14a.Level of need determination. Nonemergency medical transportation 
157.18 	level of need determinations must be performed by a physician, a registered nurse working 
157.19 	under direct supervision of a physician, a physician's assistant, a nurse practitioner, a 
157.20 	licensed practical nurse, or a discharge planner. Nonemergency medical transportation 
157.21 	level of need determinations must not be performed more than semiannually on any 
157.22 	individual, unless the individual's circumstances have sufficiently changed so as to require 
157.23 	a new level of need determination. Individuals residing in licensed nursing facilities are 
157.24 	exempt from a level of need determination and are eligible for special transportation 
157.25 	services until the individual no longer resides in a licensed nursing facility. If a person 
157.26 	authorized by this subdivision to perform a level of need determination determines that an 
157.27 	individual requires stretcher transportation, the individual is presumed to maintain that 
157.28 	level of need until otherwise determined by a person authorized to perform a level of need 
157.29 	determination, or for six months, whichever is sooner.

157.30 	Sec. 10. Minnesota Statutes 2006, section 256B.056, subdivision 10, is amended to 
157.31 	read:
157.32 		Subd. 10.Eligibility verification. (a) The commissioner shall require women who 
157.33 	are applying for the continuation of medical assistance coverage following the end of the 
158.1 	60-day postpartum period to update their income and asset information and to submit 
158.2 	any required income or asset verification.
158.3 	(b) The commissioner shall determine the eligibility of private-sector health care 
158.4 	coverage for infants less than one year of age eligible under section 256B.055, subdivision 
158.5 	10, or 256B.057, subdivision 1, paragraph (d), and shall pay for private-sector coverage 
158.6 	if this is determined to be cost-effective.
158.7 	(c) The commissioner shall modify the application for Minnesota health care 
158.8 	programs to require more detailed information related to verification of assets and income, 
158.9 	and shall verify assets and income for all applicants, and for all recipients upon renewal.
158.10 	(d) The commissioner shall require Minnesota health care program recipients to 
158.11 	report new or an increase in earned income within ten days of the change, and to verify new 
158.12 	or an increase in earned income that affects eligibility within ten days of notification by 
158.13 	the agency that the new or increased earned income affects eligibility. Recipients who fail 
158.14 	to verify new or an increase in earned income that affects eligibility shall be disenrolled.

158.15 	Sec. 11. Minnesota Statutes 2006, section 256B.0625, subdivision 3f, is amended to 
158.16 	read:
158.17 		Subd. 3f.Circumcision for newborns. Newborn Circumcision is not covered, 
158.18 	unless the procedure is medically necessary or required because of a well-established 
158.19 	religious practice.

158.20 	Sec. 12. Minnesota Statutes 2006, section 256B.0625, subdivision 5a, is amended to 
158.21 	read:
158.22 		Subd. 5a.Services for children with autism spectrum disorders. (a) Medical 
158.23 	assistance covers home-based intensive early intervention behavior therapy for children 
158.24 	with autism spectrum disorders, effective July 1, 2007 January 1, 2010. Children with 
158.25 	autism spectrum disorder, and their custodial parents or foster parents, may access other 
158.26 	covered services to treat autism spectrum disorder, and are not required to receive 
158.27 	intensive early intervention behavior therapy services under this subdivision.
158.28 	(b) Intensive early intervention behavior therapy does not include coverage for 
158.29 	services to treat developmental disorders of language, early onset psychosis, Rett's 
158.30 	disorder, selective mutism, social anxiety disorder, stereotypic movement disorder, 
158.31 	dementia, obsessive compulsive disorder, schizoid personality disorder, avoidant 
158.32 	personality disorder, or reactive attachment disorder.
159.1 	(c) If a child with autism spectrum disorder is diagnosed to have one or more of 
159.2 	these conditions, intensive early intervention behavior therapy includes coverage only for 
159.3 	services necessary to treat the autism spectrum disorder.

159.4 	Sec. 13. Minnesota Statutes 2006, section 256B.0625, subdivision 5k, is amended to 
159.5 	read:
159.6 		Subd. 5k.Report. The commissioner shall collect evidence of the effectiveness 
159.7 	of intensive early intervention behavior therapy services and present a report to the 
159.8 	legislature by July 1, 2010 January 15, 2013.

159.9 	Sec. 14. Minnesota Statutes 2006, section 256B.0625, is amended by adding a 
159.10 	subdivision to read:
159.11 		Subd. 13i.Medicare Part D. Notwithstanding subdivision 13, paragraph (d), for 
159.12 	recipients who are enrolled in a Medicare Part D prescription drug plan or Medicare 
159.13 	Advantage special needs plan, medical assistance covers co-payments which the recipient 
159.14 	is responsible for under a Medicare Part D prescription drug plan or Medicare Advantage 
159.15 	special needs plan, once the recipient has paid $12 per month in prescription drug 
159.16 	co-payments, and according to the requirements of the plan.

159.17 	EFFECTIVE DATE. This section is effective January 1, 2008, or upon federal 
159.18 	approval, whichever is later.

159.19 	Sec. 15. Minnesota Statutes 2006, section 256B.0631, subdivision 1, is amended to 
159.20 	read:
159.21 		Subdivision 1.Co-payments. (a) Except as provided in subdivision 2, the medical 
159.22 	assistance benefit plan shall include the following co-payments for all recipients, effective 
159.23 	for services provided on or after October 1, 2003, and before January 1, 2008:
159.24 	(1) $3 per nonpreventive visit. For purposes of this subdivision, a visit means an 
159.25 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
159.26 	established illness, and which is delivered in an ambulatory setting by a physician or 
159.27 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
159.28 	audiologist, optician, or optometrist;
159.29 	(2) $3 for eyeglasses;
159.30 	(3) $6 for nonemergency visits to a hospital-based emergency room; and
159.31 	(4) $3 per brand-name drug prescription and $1 per generic drug prescription, 
159.32 	subject to a $12 per month maximum for prescription drug co-payments. No co-payments 
159.33 	shall apply to antipsychotic drugs when used for the treatment of mental illness.
160.1 	(b) Except as provided in subdivision 2, the medical assistance benefit plan shall 
160.2 	include the following co-payments for all recipients, effective for services provided on 
160.3 	or after January 1, 2008:
160.4 	(1) $6 for nonemergency visits to a hospital-based emergency room; and
160.5 	(2) $3 per brand-name drug prescription and $1 per generic drug prescription, 
160.6 	subject to a $7 per month maximum for prescription drug co-payments. No co-payments 
160.7 	shall apply to antipsychotic drugs when used for the treatment of mental illness.
160.8 	(c) Recipients of medical assistance are responsible for all co-payments in this 
160.9 	subdivision.

160.10 	Sec. 16. Minnesota Statutes 2006, section 256B.0631, subdivision 3, is amended to 
160.11 	read:
160.12 		Subd. 3.Collection. (a) The medical assistance reimbursement to the provider shall 
160.13 	be reduced by the amount of the co-payment, except that reimbursement for prescription 
160.14 	drugs shall not be reduced once a recipient has reached the $12 per month maximum for 
160.15 	prescription drug co-payments. 
160.16 	(b) The provider collects the co-payment from the recipient. Providers may not 
160.17 	deny services to recipients who are unable to pay the co-payment, except as provided in 
160.18 	subdivision 4.
160.19 	(c) Medical assistance reimbursement to fee-for-service providers and payments to 
160.20 	managed care plans shall not be increased as a result of the removal of the co-payments 
160.21 	effective January 1, 2008.

160.22 	Sec. 17. Minnesota Statutes 2006, section 256B.0644, is amended to read:
160.23 	256B.0644 REIMBURSEMENT UNDER OTHER STATE HEALTH CARE 
160.24 	PROGRAMS.
160.25 	(a) A vendor of medical care, as defined in section 256B.02, subdivision 7, and a 
160.26 	health maintenance organization, as defined in chapter 62D, must participate as a provider 
160.27 	or contractor in the medical assistance program, general assistance medical care program, 
160.28 	and MinnesotaCare as a condition of participating as a provider in health insurance plans 
160.29 	and programs or contractor for state employees established under section 43A.18, the 
160.30 	public employees insurance program under section 43A.316, for health insurance plans 
160.31 	offered to local statutory or home rule charter city, county, and school district employees, 
160.32 	the workers' compensation system under section 176.135, and insurance plans provided 
160.33 	through the Minnesota Comprehensive Health Association under sections 62E.01 to 
160.34 	62E.19. The limitations on insurance plans offered to local government employees shall 
161.1 	not be applicable in geographic areas where provider participation is limited by managed 
161.2 	care contracts with the Department of Human Services. 
161.3 	(b) For providers other than health maintenance organizations, participation in the 
161.4 	medical assistance program means that:
161.5 	 (1) the provider accepts new medical assistance, general assistance medical care, 
161.6 	and MinnesotaCare patients or;
161.7 	(2) for providers other than dental service providers, at least 20 percent of the 
161.8 	provider's patients are covered by medical assistance, general assistance medical care, and 
161.9 	MinnesotaCare as their primary source of coverage, or; or
161.10 	(3) for dental service providers, at least ten percent of the provider's patients are 
161.11 	covered by medical assistance, general assistance medical care, and MinnesotaCare as 
161.12 	their primary source of coverage, or the provider accepts new medical assistance and 
161.13 	MinnesotaCare patients who are children with special health care needs. For purposes 
161.14 	of this section, "children with special health care needs" means children up to age 18 
161.15 	who: (i) require health and related services beyond that required by children generally; 
161.16 	and (ii) have or are at risk for a chronic physical, developmental, behavioral, or emotional 
161.17 	condition, including: bleeding and coagulation disorders; immunodeficiency disorders; 
161.18 	cancer; endocrinopathy; developmental disabilities; epilepsy, cerebral palsy, and other 
161.19 	neurological diseases; visual impairment or deafness; Down syndrome and other genetic 
161.20 	disorders; autism; fetal alcohol syndrome; and other conditions designated by the 
161.21 	commissioner after consultation with representatives of pediatric dental providers and 
161.22 	consumers. 
161.23 	(c) Patients seen on a volunteer basis by the provider at a location other than the 
161.24 	provider's usual place of practice may be considered in meeting this the participation 
161.25 	requirement in this section. The commissioner shall establish participation requirements 
161.26 	for health maintenance organizations. The commissioner shall provide lists of 
161.27 	participating medical assistance providers on a quarterly basis to the commissioner of 
161.28 	employee relations, the commissioner of labor and industry, and the commissioner of 
161.29 	commerce. Each of the commissioners shall develop and implement procedures to exclude 
161.30 	as participating providers in the program or programs under their jurisdiction those 
161.31 	providers who do not participate in the medical assistance program. The commissioner 
161.32 	of employee relations shall implement this section through contracts with participating 
161.33 	health and dental carriers. 

161.34 	Sec. 18. Minnesota Statutes 2006, section 256B.199, is amended to read:
161.35 	256B.199 PAYMENTS REPORTED BY GOVERNMENTAL ENTITIES.
162.1 	(a) Effective July 1, 2007, the commissioner shall apply for federal matching funds 
162.2 	for the expenditures in paragraphs (b) and (c).
162.3 	(b) The commissioner shall apply for federal matching funds for certified public 
162.4 	expenditures as follows:
162.5 	(1) Hennepin County, Hennepin County Medical Center, Ramsey County, Regions 
162.6 	Hospital, the University of Minnesota, and Fairview-University Medical Center shall 
162.7 	report quarterly to the commissioner beginning June 1, 2007, payments made during the 
162.8 	second previous quarter that may qualify for reimbursement under federal law.;
162.9 	(b) (2)  based on these reports, the commissioner shall apply for federal matching 
162.10 	funds. These funds are appropriated to the commissioner for the payments under section 
162.11 	256.969, subdivision 27.; and
162.12 	(c) (3) by May 1 of each year, beginning May 1, 2007, the commissioner shall inform 
162.13 	the nonstate entities listed in paragraph (a) of the amount of federal disproportionate share 
162.14 	hospital payment money expected to be available in the current federal fiscal year.
162.15 	(c) The commissioner shall apply for federal matching funds for general assistance 
162.16 	medical care expenditures as follows:
162.17 	(1) for hospital services occurring on or after July 1, 2007, general assistance medical 
162.18 	care expenditures for fee-for-service inpatient and outpatient hospital payments made by 
162.19 	the department shall be used to apply for federal matching funds, except as limited below:
162.20 	(i) only those general assistance medical care expenditures made to an individual 
162.21 	hospital that would not cause the hospital to exceed its individual hospital limits under 
162.22 	section 1923 of the Social Security Act may be considered; and
162.23 	(ii) general assistance medical care expenditures may be considered only to the extent 
162.24 	of Minnesota's aggregate allotment under section 1923 of the Social Security Act; and
162.25 	(2) all hospitals must provide any necessary expenditure, cost, and revenue 
162.26 	information required by the commissioner as necessary for purposes of obtaining federal 
162.27 	Medicaid matching funds for general assistance medical care expenditures.
162.28 	(d) This section sunsets on June 30, 2009. The commissioner shall report to 
162.29 	the legislature by December 15, 2008, with recommendations for maximizing federal 
162.30 	disproportionate share hospital payments after June 30, 2009.

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

162.32 	Sec. 19. Minnesota Statutes 2006, section 256B.75, is amended to read:
162.33 	256B.75 HOSPITAL OUTPATIENT REIMBURSEMENT.
163.1 	(a) For outpatient hospital facility fee payments for services rendered on or after 
163.2 	October 1, 1992, the commissioner of human services shall pay the lower of (1) submitted 
163.3 	charge, or (2) 32 percent above the rate in effect on June 30, 1992, except for those 
163.4 	services for which there is a federal maximum allowable payment. Effective for services 
163.5 	rendered on or after January 1, 2000, payment rates for nonsurgical outpatient hospital 
163.6 	facility fees and emergency room facility fees shall be increased by eight percent over the 
163.7 	rates in effect on December 31, 1999, except for those services for which there is a federal 
163.8 	maximum allowable payment. Services for which there is a federal maximum allowable 
163.9 	payment shall be paid at the lower of (1) submitted charge, or (2) the federal maximum 
163.10 	allowable payment. Total aggregate payment for outpatient hospital facility fee services 
163.11 	shall not exceed the Medicare upper limit. If it is determined that a provision of this 
163.12 	section conflicts with existing or future requirements of the United States government with 
163.13 	respect to federal financial participation in medical assistance, the federal requirements 
163.14 	prevail. The commissioner may, in the aggregate, prospectively reduce payment rates to 
163.15 	avoid reduced federal financial participation resulting from rates that are in excess of 
163.16 	the Medicare upper limitations.
163.17 	(b) Notwithstanding paragraph (a), payment for outpatient, emergency, and 
163.18 	ambulatory surgery hospital facility fee services for critical access hospitals designated 
163.19 	under section 144.1483, clause (10), shall be paid on a cost-based payment system that is 
163.20 	based on the cost-finding methods and allowable costs of the Medicare program. Effective 
163.21 	for services provided on or after July 1, 2007, a children's hospital that was formerly 
163.22 	a state hospital must be paid for the services in this paragraph using the methodology 
163.23 	established for critical access hospitals at a rate equal to 71 percent of allowable costs. 
163.24 	(c) Effective for services provided on or after July 1, 2003, rates that are based 
163.25 	on the Medicare outpatient prospective payment system shall be replaced by a budget 
163.26 	neutral prospective payment system that is derived using medical assistance data. The 
163.27 	commissioner shall provide a proposal to the 2003 legislature to define and implement 
163.28 	this provision.
163.29 	(d) For fee-for-service services provided on or after July 1, 2002, the total payment, 
163.30 	before third-party liability and spenddown, made to hospitals for outpatient hospital 
163.31 	facility services is reduced by .5 percent from the current statutory rate.
163.32 	(e) In addition to the reduction in paragraph (d), the total payment for fee-for-service 
163.33 	services provided on or after July 1, 2003, made to hospitals for outpatient hospital 
163.34 	facility services before third-party liability and spenddown, is reduced five percent from 
163.35 	the current statutory rates. Facilities defined under section 256.969, subdivision 16, are 
163.36 	excluded from this paragraph.

164.1 	Sec. 20. Minnesota Statutes 2006, section 256B.76, is amended to read:
164.2 	256B.76 PHYSICIAN AND DENTAL REIMBURSEMENT.
164.3 	(a) Effective for services rendered on or after October 1, 1992, the commissioner 
164.4 	shall make payments for physician services as follows:
164.5 	(1) payment for level one Centers for Medicare and Medicaid Services' common 
164.6 	procedural coding system codes titled "office and other outpatient services," "preventive 
164.7 	medicine new and established patient," "delivery, antepartum, and postpartum care," 
164.8 	"critical care," cesarean delivery and pharmacologic management provided to psychiatric 
164.9 	patients, and level three codes for enhanced services for prenatal high risk, shall be paid 
164.10 	at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 
164.11 	30, 1992. If the rate on any procedure code within these categories is different than the 
164.12 	rate that would have been paid under the methodology in section 256B.74, subdivision 2, 
164.13 	then the larger rate shall be paid; 
164.14 	(2) payments for all other services shall be paid at the lower of (i) submitted charges, 
164.15 	or (ii) 15.4 percent above the rate in effect on June 30, 1992;
164.16 	(3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th 
164.17 	percentile of 1989, less the percent in aggregate necessary to equal the above increases 
164.18 	except that payment rates for home health agency services shall be the rates in effect 
164.19 	on September 30, 1992;
164.20 	(4) effective for services rendered on or after January 1, 2000, payment rates for 
164.21 	physician and professional services shall be increased by three percent over the rates in 
164.22 	effect on December 31, 1999, except for home health agency and family planning agency 
164.23 	services; and
164.24 	(5) the increases in clause (4) shall be implemented January 1, 2000, for managed 
164.25 	care.
164.26 	(b) Effective for services rendered on or after October 1, 1992, the commissioner 
164.27 	shall make payments for dental services as follows:
164.28 	(1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25 
164.29 	percent above the rate in effect on June 30, 1992;
164.30 	(2) dental rates shall be converted from the 50th percentile of 1982 to the 50th 
164.31 	percentile of 1989, less the percent in aggregate necessary to equal the above increases;
164.32 	(3) effective for services rendered on or after January 1, 2000, payment rates for 
164.33 	dental services shall be increased by three percent over the rates in effect on December 
164.34 	31, 1999;
164.35 	(4) the commissioner shall award grants to community clinics or other nonprofit 
164.36 	community organizations, political subdivisions, professional associations, or other 
165.1 	organizations that demonstrate the ability to provide dental services effectively to public 
165.2 	program recipients. Grants may be used to fund the costs related to coordinating access for 
165.3 	recipients, developing and implementing patient care criteria, upgrading or establishing 
165.4 	new facilities, acquiring furnishings or equipment, recruiting new providers, or other 
165.5 	development costs that will improve access to dental care in a region. In awarding grants, 
165.6 	the commissioner shall give priority to applicants that plan to serve areas of the state in 
165.7 	which the number of dental providers is not currently sufficient to meet the needs of 
165.8 	recipients of public programs or uninsured individuals. The commissioner shall consider 
165.9 	the following in awarding the grants:
165.10 	(i) potential to successfully increase access to an underserved population;
165.11 	(ii) the ability to raise matching funds;
165.12 	(iii) the long-term viability of the project to improve access beyond the period 
165.13 	of initial funding;
165.14 	(iv) the efficiency in the use of the funding; and
165.15 	(v) the experience of the proposers in providing services to the target population.
165.16 	The commissioner shall monitor the grants and may terminate a grant if the grantee 
165.17 	does not increase dental access for public program recipients. The commissioner shall 
165.18 	consider grants for the following:
165.19 	(i) implementation of new programs or continued expansion of current access 
165.20 	programs that have demonstrated success in providing dental services in underserved 
165.21 	areas;
165.22 	(ii) a pilot program for utilizing hygienists outside of a traditional dental office to 
165.23 	provide dental hygiene services; and
165.24 	(iii) a program that organizes a network of volunteer dentists, establishes a system to 
165.25 	refer eligible individuals to volunteer dentists, and through that network provides donated 
165.26 	dental care services to public program recipients or uninsured individuals;
165.27 	(5) beginning October 1, 1999, the payment for tooth sealants and fluoride treatments 
165.28 	shall be the lower of (i) submitted charge, or (ii) 80 percent of median 1997 charges;
165.29 	(6) the increases listed in clauses (3) and (5) shall be implemented January 1, 2000, 
165.30 	for managed care; and
165.31 	(7) effective for services provided on or after January 1, 2002, payment for 
165.32 	diagnostic examinations and dental x-rays provided to children under age 21 shall be the 
165.33 	lower of (i) the submitted charge, or (ii) 85 percent of median 1999 charges.
165.34 	(c) Effective for dental services rendered on or after January 1, 2002, the 
165.35 	commissioner may, within the limits of available appropriation,shall increase 
165.36 	reimbursements to dentists and dental clinics deemed by the commissioner to be critical 
166.1 	access dental providers. Reimbursement to a critical access dental provider may be 
166.2 	increased by not more than 50 percent above the reimbursement rate that would otherwise 
166.3 	be paid to the provider. Payments to health plan companies shall be adjusted toFor dental 
166.4 	services rendered on or after July 1, 2007, the commissioner shall increase reimbursement 
166.5 	by 33 percent above the reimbursement rate that would otherwise be paid to the critical 
166.6 	access dental provider. The commissioner shall pay the health plan companies in amounts 
166.7 	sufficient to reflect increased reimbursements to critical access dental providers as 
166.8 	approved by the commissioner. In determining which dentists and dental clinics shall be 
166.9 	deemed critical access dental providers, the commissioner shall review:
166.10 	(1) the utilization rate in the service area in which the dentist or dental clinic operates 
166.11 	for dental services to patients covered by medical assistance, general assistance medical 
166.12 	care, or MinnesotaCare as their primary source of coverage;
166.13 	(2) the level of services provided by the dentist or dental clinic to patients covered 
166.14 	by medical assistance, general assistance medical care, or MinnesotaCare as their primary 
166.15 	source of coverage; and
166.16 	(3) whether the level of services provided by the dentist or dental clinic is critical to 
166.17 	maintaining adequate levels of patient access within the service area.
166.18 	In the absence of a critical access dental provider in a service area, the commissioner may 
166.19 	designate a dentist or dental clinic as a critical access dental provider if the dentist or 
166.20 	dental clinic is willing to provide care to patients covered by medical assistance, general 
166.21 	assistance medical care, or MinnesotaCare at a level which significantly increases access 
166.22 	to dental care in the service area.
166.23 	The commissioner shall annually establish a reimbursement schedule for critical 
166.24 	access dental providers and provider-specific limits on total reimbursement received 
166.25 	under the reimbursement schedule, and shall notify each critical access dental provider 
166.26 	of the schedule and limit.
166.27 	(d) An entity that operates both a Medicare certified comprehensive outpatient 
166.28 	rehabilitation facility and a facility which was certified prior to January 1, 1993, that is 
166.29 	licensed under Minnesota Rules, parts 9570.2000 to 9570.3600, and for whom at least 33 
166.30 	percent of the clients receiving rehabilitation services in the most recent calendar year are 
166.31 	medical assistance recipients, shall be reimbursed by the commissioner for rehabilitation 
166.32 	services at rates that are 38 percent greater than the maximum reimbursement rate 
166.33 	allowed under paragraph (a), clause (2), when those services are (1) provided within the 
166.34 	comprehensive outpatient rehabilitation facility and (2) provided to residents of nursing 
166.35 	facilities owned by the entity.
167.1 	(e) Effective for services rendered on or after January 1, 2007, the commissioner 
167.2 	shall make payments for physician and professional services based on the Medicare 
167.3 	relative value units (RVU's). This change shall be budget neutral and the cost of 
167.4 	implementing RVU's will be incorporated in the established conversion factor.

167.5 	Sec. 21. [256B.764] REIMBURSEMENT FOR FAMILY PLANNING SERVICES.
167.6 	Effective for services rendered on or after July 1, 2007, payment rates for family 
167.7 	planning services shall be increased by 25 percent over the rates in effect June 30, 2007, 
167.8 	when these services are provided by a community clinic as defined in section 145.9268, 
167.9 	subdivision 1.

167.10 	Sec. 22. Minnesota Statutes 2006, section 256D.03, subdivision 3, is amended to read:
167.11 		Subd. 3.General assistance medical care; eligibility. (a) General assistance 
167.12 	medical care may be paid for any person who is not eligible for medical assistance under 
167.13 	chapter 256B, including eligibility for medical assistance based on a spenddown of excess 
167.14 	income according to section 256B.056, subdivision 5, or MinnesotaCare as defined in 
167.15 	paragraph (b), except as provided in paragraph (c), and:
167.16 	(1) who is receiving assistance under section 256D.05, except for families with 
167.17 	children who are eligible under Minnesota family investment program (MFIP), or who is 
167.18 	having a payment made on the person's behalf under sections 256I.01 to 256I.06; or
167.19 	(2) who is a resident of Minnesota; and
167.20 	(i) who has gross countable income not in excess of 75 percent of the federal poverty 
167.21 	guidelines for the family size, using a six-month budget period and whose equity in assets 
167.22 	is not in excess of $1,000 per assistance unit. General assistance medical care is not 
167.23 	available for applicants or enrollees who are otherwise eligible for medical assistance but 
167.24 	fail to verify their assets. Enrollees who become eligible for medical assistance shall be 
167.25 	terminated and transferred to medical assistance. Exempt assets, the reduction of excess 
167.26 	assets, and the waiver of excess assets must conform to the medical assistance program in 
167.27 	section 256B.056, subdivision 3, with the following exception: the maximum amount of 
167.28 	undistributed funds in a trust that could be distributed to or on behalf of the beneficiary by 
167.29 	the trustee, assuming the full exercise of the trustee's discretion under the terms of the 
167.30 	trust, must be applied toward the asset maximum;
167.31 	(ii) who has gross countable income above 75 percent of the federal poverty 
167.32 	guidelines but not in excess of 175 percent of the federal poverty guidelines for the 
167.33 	family size, using a six-month budget period, whose equity in assets is not in excess 
168.1 	of the limits in section 256B.056, subdivision 3c, and who applies during an inpatient 
168.2 	hospitalization; or
168.3 	(iii) the commissioner shall adjust the income standards under this section each July 
168.4 	1 by the annual update of the federal poverty guidelines following publication by the 
168.5 	United States Department of Health and Human Services.
168.6 	(b) Effective for applications and renewals processed on or after September 1, 2006, 
168.7 	general assistance medical care may not be paid for applicants or recipients who are adults 
168.8 	with dependent children under 21 whose gross family income is equal to or less than 275 
168.9 	percent of the federal poverty guidelines who are not described in paragraph (e).
168.10 	(c) Effective for applications and renewals processed on or after September 1, 2006, 
168.11 	general assistance medical care may be paid for applicants and recipients who meet all 
168.12 	eligibility requirements of paragraph (a), clause (2), item (i), for a temporary period 
168.13 	beginning the date of application. Immediately following approval of general assistance 
168.14 	medical care, enrollees shall be enrolled in MinnesotaCare under section 256L.04, 
168.15 	subdivision 7, with covered services as provided in section 256L.03 for the rest of the 
168.16 	six-month general assistance medical care eligibility period, until their six-month renewal. 
168.17 	(d) To be eligible for general assistance medical care following enrollment in 
168.18 	MinnesotaCare as required by paragraph (c), an individual must complete a new 
168.19 	application.
168.20 	(e) Applicants and recipients eligible under paragraph (a), clause (1); who have 
168.21 	applied for and are awaiting a determination of blindness or disability by the state medical 
168.22 	review team or a determination of eligibility for Supplemental Security Income or Social 
168.23 	Security Disability Insurance by the Social Security Administration; who fail to meet the 
168.24 	requirements of section 256L.09, subdivision 2; who are homeless as defined by United 
168.25 	States Code, title 42, section 11301, et seq.;  who are classified as end-stage renal disease 
168.26 	beneficiaries in the Medicare program; who are enrolled in private health care coverage as 
168.27 	defined in section 256B.02, subdivision 9; who are eligible under paragraph (j); or who 
168.28 	receive treatment funded pursuant to section 254B.02 are exempt from the MinnesotaCare 
168.29 	enrollment requirements of this subdivision.
168.30 	(f) For applications received on or after October 1, 2003, eligibility may begin no 
168.31 	earlier than the date of application. For individuals eligible under paragraph (a), clause 
168.32 	(2), item (i), a redetermination of eligibility must occur every 12 months. Individuals are 
168.33 	eligible under paragraph (a), clause (2), item (ii), only during inpatient hospitalization but 
168.34 	may reapply if there is a subsequent period of inpatient hospitalization.
168.35 	(g) Beginning September 1, 2006, Minnesota health care program applications and 
168.36 	renewals completed by recipients and applicants who are persons described in paragraph 
169.1 	(c) and submitted to the county agency shall be determined for MinnesotaCare eligibility 
169.2 	by the county agency. If all other eligibility requirements of this subdivision are met, 
169.3 	eligibility for general assistance medical care shall be available in any month during which 
169.4 	MinnesotaCare enrollment is pending. Upon notification of eligibility for MinnesotaCare, 
169.5 	notice of termination for eligibility for general assistance medical care shall be sent to 
169.6 	an applicant or recipient. If all other eligibility requirements of this subdivision are 
169.7 	met, eligibility for general assistance medical care shall be available until enrollment in 
169.8 	MinnesotaCare subject to the provisions of paragraphs (c), (e), and (f).
169.9 	(h) The date of an initial Minnesota health care program application necessary to 
169.10 	begin a determination of eligibility shall be the date the applicant has provided a name, 
169.11 	address, and Social Security number, signed and dated, to the county agency or the 
169.12 	Department of Human Services. If the applicant is unable to provide a name, address, 
169.13 	Social Security number, and signature when health care is delivered due to a medical 
169.14 	condition or disability, a health care provider may act on an applicant's behalf to establish 
169.15 	the date of an initial Minnesota health care program application by providing the county 
169.16 	agency or Department of Human Services with provider identification and a temporary 
169.17 	unique identifier for the applicant. The applicant must complete the remainder of the 
169.18 	application and provide necessary verification before eligibility can be determined. The 
169.19 	county agency must assist the applicant in obtaining verification if necessary.
169.20 	(i) County agencies are authorized to use all automated databases containing 
169.21 	information regarding recipients' or applicants' income in order to determine eligibility for 
169.22 	general assistance medical care or MinnesotaCare. Such use shall be considered sufficient 
169.23 	in order to determine eligibility and premium payments by the county agency.
169.24 	(j) General assistance medical care is not available for a person in a correctional 
169.25 	facility unless the person is detained by law for less than one year in a county correctional 
169.26 	or detention facility as a person accused or convicted of a crime, or admitted as an 
169.27 	inpatient to a hospital on a criminal hold order, and the person is a recipient of general 
169.28 	assistance medical care at the time the person is detained by law or admitted on a criminal 
169.29 	hold order and as long as the person continues to meet other eligibility requirements 
169.30 	of this subdivision.
169.31 	(k) General assistance medical care is not available for applicants or recipients who 
169.32 	do not cooperate with the county agency to meet the requirements of medical assistance.
169.33 	(l) In determining the amount of assets of an individual eligible under paragraph 
169.34 	(a), clause (2), item (i), there shall be included any asset or interest in an asset, including 
169.35 	an asset excluded under paragraph (a), that was given away, sold, or disposed of for 
169.36 	less than fair market value within the 60 months preceding application for general 
170.1 	assistance medical care or during the period of eligibility. Any transfer described in this 
170.2 	paragraph shall be presumed to have been for the purpose of establishing eligibility for 
170.3 	general assistance medical care, unless the individual furnishes convincing evidence to 
170.4 	establish that the transaction was exclusively for another purpose. For purposes of this 
170.5 	paragraph, the value of the asset or interest shall be the fair market value at the time it 
170.6 	was given away, sold, or disposed of, less the amount of compensation received. For any 
170.7 	uncompensated transfer, the number of months of ineligibility, including partial months, 
170.8 	shall be calculated by dividing the uncompensated transfer amount by the average monthly 
170.9 	per person payment made by the medical assistance program to skilled nursing facilities 
170.10 	for the previous calendar year. The individual shall remain ineligible until this fixed period 
170.11 	has expired. The period of ineligibility may exceed 30 months, and a reapplication for 
170.12 	benefits after 30 months from the date of the transfer shall not result in eligibility unless 
170.13 	and until the period of ineligibility has expired. The period of ineligibility begins in the 
170.14 	month the transfer was reported to the county agency, or if the transfer was not reported, 
170.15 	the month in which the county agency discovered the transfer, whichever comes first. For 
170.16 	applicants, the period of ineligibility begins on the date of the first approved application.
170.17 	(m) When determining eligibility for any state benefits under this subdivision, 
170.18 	the income and resources of all noncitizens shall be deemed to include their sponsor's 
170.19 	income and resources as defined in the Personal Responsibility and Work Opportunity 
170.20 	Reconciliation Act of 1996, title IV, Public Law 104-193, sections 421 and 422, and 
170.21 	subsequently set out in federal rules.
170.22 	(n) Undocumented noncitizens and nonimmigrants are ineligible for general 
170.23 	assistance medical care. For purposes of this subdivision, a nonimmigrant is an individual 
170.24 	in one or more of the classes listed in United States Code, title 8, section 1101(a)(15), and 
170.25 	an undocumented noncitizen is an individual who resides in the United States without the 
170.26 	approval or acquiescence of the Immigration and Naturalization Service.
170.27 	(o) Notwithstanding any other provision of law, a noncitizen who is ineligible for 
170.28 	medical assistance due to the deeming of a sponsor's income and resources, is ineligible 
170.29 	for general assistance medical care.
170.30 	(p) Effective July 1, 2003, general assistance medical care emergency services end.

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

170.32 	Sec. 23. Minnesota Statutes 2006, section 256D.03, subdivision 4, is amended to read:
170.33 		Subd. 4.General assistance medical care; services. (a)(i) For a person who is 
170.34 	eligible under subdivision 3, paragraph (a), clause (2), item (i), general assistance medical 
170.35 	care covers, except as provided in paragraph (c):
171.1 	(1) inpatient hospital services;
171.2 	(2) outpatient hospital services;
171.3 	(3) services provided by Medicare certified rehabilitation agencies;
171.4 	(4) prescription drugs and other products recommended through the process 
171.5 	established in section 256B.0625, subdivision 13;
171.6 	(5) equipment necessary to administer insulin and diagnostic supplies and equipment 
171.7 	for diabetics to monitor blood sugar level;
171.8 	(6) eyeglasses and eye examinations provided by a physician or optometrist;
171.9 	(7) hearing aids;
171.10 	(8) prosthetic devices;
171.11 	(9) laboratory and X-ray services;
171.12 	(10) physician's services;
171.13 	(11) medical transportation except special transportation;
171.14 	(12) chiropractic services as covered under the medical assistance program;
171.15 	(13) podiatric services;
171.16 	(14) dental services as covered under the medical assistance program;
171.17 	(15) outpatient services provided by a mental health center or clinic that is under 
171.18 	contract with the county board and is established under section 245.62;
171.19 	(16) day treatment services for mental illness provided under contract with the 
171.20 	county board;
171.21 	(17) prescribed medications for persons who have been diagnosed as mentally ill as 
171.22 	necessary to prevent more restrictive institutionalization;
171.23 	(18) psychological services, medical supplies and equipment, and Medicare 
171.24 	premiums, coinsurance and deductible payments;
171.25 	(19) medical equipment not specifically listed in this paragraph when the use of 
171.26 	the equipment will prevent the need for costlier services that are reimbursable under 
171.27 	this subdivision;
171.28 	(20) services performed by a certified pediatric nurse practitioner, a certified family 
171.29 	nurse practitioner, a certified adult nurse practitioner, a certified obstetric/gynecological 
171.30 	nurse practitioner, a certified neonatal nurse practitioner, or a certified geriatric nurse 
171.31 	practitioner in independent practice, if (1) the service is otherwise covered under this 
171.32 	chapter as a physician service, (2) the service provided on an inpatient basis is not included 
171.33 	as part of the cost for inpatient services included in the operating payment rate, and (3) the 
171.34 	service is within the scope of practice of the nurse practitioner's license as a registered 
171.35 	nurse, as defined in section 148.171;
172.1 	(21) services of a certified public health nurse or a registered nurse practicing in 
172.2 	a public health nursing clinic that is a department of, or that operates under the direct 
172.3 	authority of, a unit of government, if the service is within the scope of practice of the 
172.4 	public health nurse's license as a registered nurse, as defined in section 148.171;
172.5 	(22) telemedicine consultations, to the extent they are covered under section 
172.6 	256B.0625, subdivision 3b; and
172.7 	(23) mental health telemedicine and psychiatric consultation as covered under 
172.8 	section 256B.0625, subdivisions 46 and 48.;
172.9 	(24) care coordination and patient education services provided by a community 
172.10 	health worker according to section 256B.0625, subdivision 49; and
172.11 	(25) regardless of the number of employees that an enrolled health care provider 
172.12 	may have, sign language interpreter services when provided by an enrolled health care 
172.13 	provider during the course of providing a direct, person-to-person covered health care 
172.14 	service to an enrolled recipient who has a hearing loss and uses interpreting services.
172.15 	(ii) Effective October 1, 2003, for a person who is eligible under subdivision 3, 
172.16 	paragraph (a), clause (2), item (ii), general assistance medical care coverage is limited 
172.17 	to inpatient hospital services, including physician services provided during the inpatient 
172.18 	hospital stay. A $1,000 deductible is required for each inpatient hospitalization.
172.19 	(b) Effective August 1, 2005, sex reassignment surgery is not covered under this 
172.20 	subdivision.
172.21 	(c) In order to contain costs, the commissioner of human services shall select 
172.22 	vendors of medical care who can provide the most economical care consistent with high 
172.23 	medical standards and shall where possible contract with organizations on a prepaid 
172.24 	capitation basis to provide these services. The commissioner shall consider proposals by 
172.25 	counties and vendors for prepaid health plans, competitive bidding programs, block grants, 
172.26 	or other vendor payment mechanisms designed to provide services in an economical 
172.27 	manner or to control utilization, with safeguards to ensure that necessary services are 
172.28 	provided. Before implementing prepaid programs in counties with a county operated or 
172.29 	affiliated public teaching hospital or a hospital or clinic operated by the University of 
172.30 	Minnesota, the commissioner shall consider the risks the prepaid program creates for the 
172.31 	hospital and allow the county or hospital the opportunity to participate in the program in a 
172.32 	manner that reflects the risk of adverse selection and the nature of the patients served by 
172.33 	the hospital, provided the terms of participation in the program are competitive with the 
172.34 	terms of other participants considering the nature of the population served. Payment for 
172.35 	services provided pursuant to this subdivision shall be as provided to medical assistance 
172.36 	vendors of these services under sections 256B.02, subdivision 8, and 256B.0625. For 
173.1 	payments made during fiscal year 1990 and later years, the commissioner shall consult 
173.2 	with an independent actuary in establishing prepayment rates, but shall retain final control 
173.3 	over the rate methodology.
173.4 	(d) Effective January 1, 2008, drug coverage under general assistance medical care 
173.5 	is limited to prescription drugs that:
173.6 	(i) are covered under the medical assistance program as described in section 
173.7 	256B.0625, subdivisions 13 and 13d; and
173.8 	(ii) are provided by manufacturers that have fully executed general assistance 
173.9 	medical care rebate agreements with the commissioner and comply with the agreements. 
173.10 	Prescription drug coverage under general assistance medical care must conform to 
173.11 	coverage under the medical assistance program according to section 256B.0625, 
173.12 	subdivisions 13 to 13g.
173.13 	(d) (e) Recipients eligible under subdivision 3, paragraph (a), shall pay the following 
173.14 	co-payments for services provided on or after October 1, 2003, and before January 1, 2008:
173.15 	(1) $25 for eyeglasses;
173.16 	(2) $25 for nonemergency visits to a hospital-based emergency room;
173.17 	(3) $3 per brand-name drug prescription and $1 per generic drug prescription, 
173.18 	subject to a $12 per month maximum for prescription drug co-payments. No co-payments 
173.19 	shall apply to antipsychotic drugs when used for the treatment of mental illness; and
173.20 	(4) 50 percent coinsurance on restorative dental services.
173.21 	(e)(f) Recipients eligible under subdivision 3, paragraph (a), shall include the 
173.22 	following co-payments for services provided on or after January 1, 2008: 
173.23 	(1) $25 for nonemergency visits to a hospital-based emergency room; and
173.24 	(2) $3 per brand-name drug prescription and $1 per generic drug prescription, 
173.25 	subject to a $7 per month maximum for prescription drug co-payments. No co-payments 
173.26 	shall apply to antipsychotic drugs when used for the treatment of mental illness.
173.27 	(g) Co-payments shall be limited to one per day per provider for nonpreventive visits, 
173.28 	eyeglasses, and nonemergency visits to a hospital-based emergency room. Recipients of 
173.29 	general assistance medical care are responsible for all co-payments in this subdivision. 
173.30 	The general assistance medical care reimbursement to the provider shall be reduced by the 
173.31 	amount of the co-payment, except that reimbursement for prescription drugs shall not be 
173.32 	reduced once a recipient has reached the $12 per month maximum for prescription drug 
173.33 	co-payments. The provider collects the co-payment from the recipient. Providers may 
173.34 	not deny services to recipients who are unable to pay the co-payment, except as provided 
173.35 	in paragraph (f). This paragraph expires January 1, 2008.
174.1 	(f) If it is the routine business practice of a provider to refuse service to an individual 
174.2 	with uncollected debt, the provider may include uncollected co-payments under this 
174.3 	section. A provider must give advance notice to a recipient with uncollected debt before 
174.4 	services can be denied.
174.5 	(h) Effective January 1, 2008, co-payments shall be limited to one per day per 
174.6 	provider for nonemergency visits to a hospital-based emergency room. Recipients of 
174.7 	general assistance medical care are responsible for all co-payments in this subdivision. 
174.8 	The general assistance medical care reimbursement to the provider shall be reduced by the 
174.9 	amount of the co-payment, except that reimbursement for prescription drugs shall not be 
174.10 	reduced once a recipient has reached the $7 per month maximum for prescription drug 
174.11 	co-payments. The provider collects the co-payment from the recipient. Providers may not 
174.12 	deny services to recipients who are unable to pay the co-payment.
174.13 	(i) General assistance medical care reimbursement to fee-for-service providers 
174.14 	and payments to managed care plans shall not be increased as a result of the removal of 
174.15 	the co-payments effective January 1, 2008.
174.16 	(g)(j) Any county may, from its own resources, provide medical payments for 
174.17 	which state payments are not made.
174.18 	(h)(k) Chemical dependency services that are reimbursed under chapter 254B must 
174.19 	not be reimbursed under general assistance medical care.
174.20 	(i)(l) The maximum payment for new vendors enrolled in the general assistance 
174.21 	medical care program after the base year shall be determined from the average usual and 
174.22 	customary charge of the same vendor type enrolled in the base year.
174.23 	(j)(m) The conditions of payment for services under this subdivision are the same 
174.24 	as the conditions specified in rules adopted under chapter 256B governing the medical 
174.25 	assistance program, unless otherwise provided by statute or rule.
174.26 	(k) (n) Inpatient and outpatient payments shall be reduced by five percent, effective 
174.27 	July 1, 2003. This reduction is in addition to the five percent reduction effective July 1, 
174.28 	2003, and incorporated by reference in paragraph (i) (l).
174.29 	(l)(o) Payments for all other health services except inpatient, outpatient, and 
174.30 	pharmacy services shall be reduced by five percent, effective July 1, 2003.
174.31 	(m)(p) Payments to managed care plans shall be reduced by five percent for services 
174.32 	provided on or after October 1, 2003, or upon federal approval, whichever is later.
174.33 	(n)(q) A hospital receiving a reduced payment as a result of this section may apply 
174.34 	the unpaid balance toward satisfaction of the hospital's bad debts.
174.35 	(o)(r) Fee-for-service payments for nonpreventive visits shall be reduced by $3 
174.36 	for services provided on or after January 1, 2006. For purposes of this subdivision, a 
175.1 	visit means an episode of service which is required because of a recipient's symptoms, 
175.2 	diagnosis, or established illness, and which is delivered in an ambulatory setting by 
175.3 	a physician or physician ancillary, chiropractor, podiatrist, advance practice nurse, 
175.4 	audiologist, optician, or optometrist.
175.5 	(p)(s) Payments to managed care plans shall not be increased as a result of the 
175.6 	removal of the $3 nonpreventive visit co-payment effective January 1, 2006.

175.7 	EFFECTIVE DATE. This section is effective July 1, 2007, unless another effective 
175.8 	date is explicit.

175.9 	Sec. 24. Minnesota Statutes 2006, section 256L.01, subdivision 1, is amended to read:
175.10 		Subdivision 1.Scope. For purposes of sections 256L.01 to 256L.18 this chapter, 
175.11 	the following terms shall have the meanings given them. 

175.12 	Sec. 25. Minnesota Statutes 2006, section 256L.01, subdivision 4, is amended to read:
175.13 		Subd. 4.Gross individual or gross family income. (a) "Gross individual or gross 
175.14 	family income" for nonfarm self-employed means income calculated for the six-month
175.15 	12-month period of eligibility using the net profit or loss reported on the applicant's 
175.16 	federal income tax form for the previous year and using the medical assistance families 
175.17 	with children methodology for determining allowable and nonallowable self-employment 
175.18 	expenses and countable income.
175.19 	(b) "Gross individual or gross family income" for farm self-employed means income 
175.20 	calculated for the six-month12-month period of eligibility using as the baseline the 
175.21 	adjusted gross income reported on the applicant's federal income tax form for the previous 
175.22 	year and adding back in reported depreciation amounts that apply to the business in which 
175.23 	the family is currently engaged.
175.24 	(c) "Gross individual or gross family income" means the total income for all family 
175.25 	members, calculated for the six-month12-month period of eligibility.

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

175.27 	Sec. 26. Minnesota Statutes 2006, section 256L.03, subdivision 1, is amended to read:
175.28 		Subdivision 1.Covered health services. For individuals under section 256L.04, 
175.29 	subdivision 7, with income no greater than 75 percent of the federal poverty guidelines 
175.30 	or for families with children under section 256L.04, subdivision 1, all subdivisions of 
175.31 	this section apply. "Covered health services" means the health services reimbursed 
175.32 	under chapter 256B, with the exception of inpatient hospital services, special education 
176.1 	services, private duty nursing services, adult dental care services other than services 
176.2 	covered under section 256B.0625, subdivision 9, orthodontic services, nonemergency 
176.3 	medical transportation services, personal care assistant and case management services, 
176.4 	nursing home or intermediate care facilities services, inpatient mental health services, 
176.5 	and chemical dependency services. Outpatient mental health services covered under the 
176.6 	MinnesotaCare program are limited to diagnostic assessments, psychological testing, 
176.7 	explanation of findings, mental health telemedicine, psychiatric consultation, medication 
176.8 	management by a physician, day treatment, partial hospitalization, and individual, family, 
176.9 	and group psychotherapy.
176.10 	No public funds shall be used for coverage of abortion under MinnesotaCare 
176.11 	except where the life of the female would be endangered or substantial and irreversible 
176.12 	impairment of a major bodily function would result if the fetus were carried to term; or 
176.13 	where the pregnancy is the result of rape or incest.
176.14 	Covered health services shall be expanded as provided in this section.

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

176.16 	Sec. 27. Minnesota Statutes 2006, section 256L.03, subdivision 3, is amended to read:
176.17 		Subd. 3.Inpatient hospital services. (a) Covered health services shall include 
176.18 	inpatient hospital services, including inpatient hospital mental health services and inpatient 
176.19 	hospital and residential chemical dependency treatment, subject to those limitations 
176.20 	necessary to coordinate the provision of these services with eligibility under the medical 
176.21 	assistance spenddown. Prior to July 1, 1997, the inpatient hospital benefit for adult 
176.22 	enrollees is subject to an annual benefit limit of $10,000. The inpatient hospital benefit 
176.23 	for adult enrollees who qualify under section 256L.04, subdivision 7, or who qualify 
176.24 	under section 256L.04, subdivisions 1 and 2, with family gross income that exceeds 
176.25 	175 200 percent of the federal poverty guidelines or 215 percent of the federal poverty 
176.26 	guidelines on or after July 1, 2009, and who are not pregnant, is subject to an annual 
176.27 	limit of $10,000 $20,000. 
176.28 	(b) Admissions for inpatient hospital services paid for under section 256L.11, 
176.29 	subdivision 3, must be certified as medically necessary in accordance with Minnesota 
176.30 	Rules, parts 9505.0500 to 9505.0540, except as provided in clauses (1) and (2): 
176.31 	(1) all admissions must be certified, except those authorized under rules established 
176.32 	under section 254A.03, subdivision 3, or approved under Medicare; and 
176.33 	(2) payment under section 256L.11, subdivision 3, shall be reduced by five percent 
176.34 	for admissions for which certification is requested more than 30 days after the day of 
177.1 	admission. The hospital may not seek payment from the enrollee for the amount of the 
177.2 	payment reduction under this clause. 

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

177.6 	Sec. 28. Minnesota Statutes 2006, section 256L.03, subdivision 5, is amended to read:
177.7 		Subd. 5.Co-payments and coinsurance. (a) Except as provided in paragraphs (b) 
177.8 	and (c), the MinnesotaCare benefit plan shall include the following co-payments and 
177.9 	coinsurance requirements for all enrollees:
177.10 	(1) ten percent of the paid charges for inpatient hospital services for adult enrollees, 
177.11 	subject to an annual inpatient out-of-pocket maximum of $1,000 per individual and 
177.12 	$3,000 per family;
177.13 	(2) $3 per prescription for adult enrollees;
177.14 	(3) $25 for eyeglasses for adult enrollees;
177.15 	(4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an 
177.16 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
177.17 	established illness, and which is delivered in an ambulatory setting by a physician or 
177.18 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
177.19 	audiologist, optician, or optometrist; and
177.20 	(5) $6 for nonemergency visits to a hospital-based emergency room.
177.21 	(b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of 
177.22 	children under the age of 21 in households with family income equal to or less than 175 
177.23 	percent of the federal poverty guidelines. Paragraph (a), clause (1), does not apply to 
177.24 	parents and relative caretakers of children under the age of 21 in households with family 
177.25 	income greater than 175 percent of the federal poverty guidelines for inpatient hospital 
177.26 	admissions occurring on or after January 1, 2001.
177.27 	(c) Paragraph (a), clauses (1) to (4), do does not apply to pregnant women and 
177.28 	children under the age of 21.
177.29 	(d) Adult enrollees with family gross income that exceeds 175 200 percent of the 
177.30 	federal poverty guidelines or 215 percent of the federal poverty guidelines on or after July 
177.31 	1, 2009, and who are not pregnant shall be financially responsible for the coinsurance 
177.32 	amount, if applicable, and amounts which exceed the $10,000 $20,000 inpatient hospital 
177.33 	benefit limit.
177.34 	(e) When a MinnesotaCare enrollee becomes a member of a prepaid health 
177.35 	plan, or changes from one prepaid health plan to another during a calendar year, any 
178.1 	charges submitted towards the $10,000 $20,000 annual inpatient benefit limit, and any 
178.2 	out-of-pocket expenses incurred by the enrollee for inpatient services, that were submitted 
178.3 	or incurred prior to enrollment, or prior to the change in health plans, shall be disregarded.

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

178.7 	Sec. 29. Minnesota Statutes 2006, section 256L.04, subdivision 7, is amended to read:
178.8 		Subd. 7.Single adults and households with no children. The definition of eligible 
178.9 	persons includes all individuals and households with no children who have gross family 
178.10 	incomes that are equal to or less than 175 200 percent of the federal poverty guidelines.
178.11 	Effective July 1, 2009, the definition of eligible persons includes all individuals and 
178.12 	households with no children who have gross family incomes that are equal to or less than 
178.13 	215 percent of the federal poverty guidelines.

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

178.15 	Sec. 30. Minnesota Statutes 2006, section 256L.05, subdivision 1, is amended to read:
178.16 		Subdivision 1.Application and information availability. Applications and other 
178.17 	information application assistance must be made available to at provider offices, local 
178.18 	human services agencies, school districts, public and private elementary schools in which 
178.19 	25 percent or more of the students receive free or reduced price lunches, community health 
178.20 	offices, and Women, Infants and Children (WIC) program sites, Head Start program sites, 
178.21 	public housing councils, crisis nurseries, child care centers, early childhood education 
178.22 	and preschool program sites, legal aid offices, and libraries. These sites may accept 
178.23 	applications and forward the forms to the commissioner or local county human services 
178.24 	agencies that choose to participate as an enrollment site. Otherwise, applicants may apply 
178.25 	directly to the commissioner or to participating local county human services agencies. 
178.26 	Beginning January 1, 2000, MinnesotaCare enrollment sites will be expanded to include 
178.27 	local county human services agencies which choose to participate.

178.28 	Sec. 31. Minnesota Statutes 2006, section 256L.05, subdivision 1b, is amended to read:
178.29 		Subd. 1b.MinnesotaCare enrollment by county agencies. Beginning September 
178.30 	1, 2006, county agencies shall enroll single adults and households with no children 
178.31 	formerly enrolled in general assistance medical care in MinnesotaCare according to 
178.32 	section 256D.03, subdivision 3. County agencies shall perform all duties necessary 
179.1 	to administer the MinnesotaCare program ongoing for these enrollees, including the 
179.2 	redetermination of MinnesotaCare eligibility at six-month renewal.

179.3 	Sec. 32. Minnesota Statutes 2006, section 256L.05, subdivision 2, is amended to read:
179.4 		Subd. 2.Commissioner's duties. (a) The commissioner or county agency shall 
179.5 	use electronic verification as the primary method of income verification. If there is a 
179.6 	discrepancy between reported income and electronically verified income, an individual 
179.7 	may be required to submit additional verification. In addition, the commissioner shall 
179.8 	perform random audits to verify reported income and eligibility. The commissioner 
179.9 	may execute data sharing arrangements with the Department of Revenue and any other 
179.10 	governmental agency in order to perform income verification related to eligibility and 
179.11 	premium payment under the MinnesotaCare program.
179.12 	(b) In determining eligibility for MinnesotaCare, the commissioner shall require 
179.13 	applicants and enrollees seeking renewal of eligibility to verify both earned and unearned 
179.14 	income. The commissioner shall also require applicants and enrollees to submit the names 
179.15 	of their employers and a contact name with a telephone number for each employer for 
179.16 	purposes of verifying whether the applicant or enrollee, and any dependents, are eligible 
179.17 	for employer-subsidized coverage. Data collected is nonpublic data as defined in section 
179.18 	13.02, subdivision 9.

179.19 	Sec. 33. Minnesota Statutes 2006, section 256L.05, subdivision 3a, is amended to read:
179.20 		Subd. 3a.Renewal of eligibility. (a) Beginning January 1, 1999 July 1, 2007, an 
179.21 	enrollee's eligibility must be renewed every 12 months. The 12-month period begins in 
179.22 	the month after the month the application is approved.
179.23 	(b) Beginning October 1, 2004, an enrollee's eligibility must be renewed every 
179.24 	six months. The first six-month period of eligibility begins the month the application is 
179.25 	received by the commissioner. The effective date of coverage within the first six-month 
179.26 	period of eligibility is as provided in subdivision 3. Each new period of eligibility must 
179.27 	take into account any changes in circumstances that impact eligibility and premium 
179.28 	amount. An enrollee must provide all the information needed to redetermine eligibility by 
179.29 	the first day of the month that ends the eligibility period. The premium for the new period 
179.30 	of eligibility must be received as provided in section 256L.06 in order for eligibility to 
179.31 	continue.
179.32 	(c) For single adults and households with no children formerly enrolled in general 
179.33 	assistance medical care and enrolled in MinnesotaCare according to section 256D.03, 
180.1 	subdivision 3, the first six-month period of eligibility begins the month the enrollee 
180.2 	submitted the application or renewal for general assistance medical care.

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

180.5 	Sec. 34. Minnesota Statutes 2006, section 256L.07, subdivision 1, is amended to read:
180.6 		Subdivision 1.General requirements. (a) Children enrolled in the original 
180.7 	children's health plan as of September 30, 1992, children who enrolled in the 
180.8 	MinnesotaCare program after September 30, 1992, pursuant to Laws 1992, chapter 549, 
180.9 	article 4, section 17, and children who have family gross incomes that are equal to or 
180.10 	less than 150 percent of the federal poverty guidelines are eligible without meeting 
180.11 	the requirements of subdivision 2 and the four-month requirement in subdivision 3, as 
180.12 	long as they maintain continuous coverage in the MinnesotaCare program or medical 
180.13 	assistance. Children who apply for MinnesotaCare on or after the implementation date 
180.14 	of the employer-subsidized health coverage program as described in Laws 1998, chapter 
180.15 	407, article 5, section 45, who have family gross incomes that are equal to or less than 150 
180.16 	percent of the federal poverty guidelines, must meet the requirements of subdivision 2 to 
180.17 	be eligible for MinnesotaCare.
180.18 	(b) Families enrolled in MinnesotaCare under section 256L.04, subdivision 1, whose 
180.19 	income increases above 275 percent of the federal poverty guidelines, are no longer 
180.20 	eligible for the program and shall be disenrolled by the commissioner. Beginning January 
180.21 	1, 2008, individuals enrolled in MinnesotaCare under section 256L.04, subdivision 7, 
180.22 	whose income increases above 175 200 percent of the federal poverty guidelines or 215 
180.23 	percent of the federal poverty guidelines on or after July 1, 2009, are no longer eligible for 
180.24 	the program and shall be disenrolled by the commissioner. For persons disenrolled under 
180.25 	this subdivision, MinnesotaCare coverage terminates the last day of the calendar month 
180.26 	following the month in which the commissioner determines that the income of a family or 
180.27 	individual exceeds program income limits.
180.28 	(c) (b)  Notwithstanding paragraph (b) (a), children may remain enrolled in 
180.29 	MinnesotaCare if ten percent of their gross individual or gross family income as defined 
180.30 	in section 256L.01, subdivision 4, is less than the annual premium for a six-month
180.31 	policy with a $500 deductible available through the Minnesota Comprehensive Health 
180.32 	Association. Children who are no longer eligible for MinnesotaCare under this clause shall 
180.33 	be given a 12-month notice period from the date that ineligibility is determined before 
180.34 	disenrollment. The premium for children remaining eligible under this clause shall be the 
180.35 	maximum premium determined under section 256L.15, subdivision 2, paragraph (b).
181.1 	(d) (c) Notwithstanding paragraphs (b) (a) and (c) (b), parents are not eligible for 
181.2 	MinnesotaCare if gross household income exceeds $25,000 for the six-month period 
181.3 	of eligibility.

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

181.6 	Sec. 35. Minnesota Statutes 2006, section 256L.07, subdivision 2, is amended to read:
181.7 		Subd. 2.Must not have access to employer-subsidized coverage. (a) To be 
181.8 	eligible, a family or individual an adult must not have access to subsidized health coverage 
181.9 	through an employer and must not have had access to employer-subsidized coverage 
181.10 	through a current employer for 18 months prior to application or reapplication. A family 
181.11 	or individual An adult whose employer-subsidized coverage is lost due to an employer 
181.12 	terminating health care coverage as an employee benefit during the previous 18 months 
181.13 	is not eligible.
181.14 	(b) This subdivision does not apply to a family or individual an adult who was 
181.15 	enrolled in MinnesotaCare within six months or less of reapplication and who no longer 
181.16 	has employer-subsidized coverage due to the employer terminating health care coverage 
181.17 	as an employee benefit.
181.18 	(c) For purposes of this requirement, subsidized health coverage means health 
181.19 	coverage for which the employer pays at least 50 percent of the cost of coverage for 
181.20 	the employee or dependent, or a higher percentage as specified by the commissioner. 
181.21 	Children are eligible for employer-subsidized coverage through either parent, including 
181.22 	the noncustodial parent. The commissioner must treat employer contributions to Internal 
181.23 	Revenue Code Section 125 plans and any other employer benefits intended to pay 
181.24 	health care costs as qualified employer subsidies toward the cost of health coverage for 
181.25 	employees for purposes of this subdivision.
181.26 	(d) This subdivision does not apply to children.

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

181.29 	Sec. 36. Minnesota Statutes 2006, section 256L.07, subdivision 6, is amended to read:
181.30 		Subd. 6.Exception for certain adults. Single adults and households with 
181.31 	no children formerly enrolled in general assistance medical care and enrolled in 
181.32 	MinnesotaCare according to section 256D.03, subdivision 3, are eligible without meeting 
181.33 	the requirements of this section until six-month renewal.

182.1 	Sec. 37. Minnesota Statutes 2006, section 256L.09, subdivision 4, is amended to read:
182.2 		Subd. 4.Eligibility as Minnesota resident. (a) For purposes of this section, a 
182.3 	permanent Minnesota resident is a person who has demonstrated, through persuasive and 
182.4 	objective evidence, that the person is domiciled in the state and intends to live in the 
182.5 	state permanently.
182.6 	(b) To be eligible as a permanent resident, an applicant must demonstrate the 
182.7 	requisite intent to live in the state permanently by:
182.8 	(1) showing that the applicant maintains a residence at a verified address other than a 
182.9 	place of public accommodation, through the use of evidence of residence described in 
182.10 	section 256D.02, subdivision 12a, paragraph (b), clause (1) (2); 
182.11 	(2) demonstrating that the applicant has been continuously domiciled in the state for 
182.12 	no less than 180 days immediately before the application; and
182.13 	(3) signing an affidavit declaring that (A) the applicant currently resides in the state 
182.14 	and intends to reside in the state permanently; and (B) the applicant did not come to the 
182.15 	state for the primary purpose of obtaining medical coverage or treatment.
182.16 	(c) A person who is temporarily absent from the state does not lose eligibility for 
182.17 	MinnesotaCare. "Temporarily absent from the state" means the person is out of the state 
182.18 	for a temporary purpose and intends to return when the purpose of the absence has been 
182.19 	accomplished. A person is not temporarily absent from the state if another state has 
182.20 	determined that the person is a resident for any purpose. If temporarily absent from the 
182.21 	state, the person must follow the requirements of the health plan in which the person is 
182.22 	enrolled to receive services.

182.23 	Sec. 38. Minnesota Statutes 2006, section 256L.11, subdivision 7, is amended to read:
182.24 		Subd. 7.Critical access dental providers. Effective for dental services provided 
182.25 	to MinnesotaCare enrollees on or after January 1, 2007, the commissioner shall increase 
182.26 	payment rates to dentists and dental clinics deemed by the commissioner to be critical 
182.27 	access providers under section 256B.76, paragraph (c), by 50 percent above the payment 
182.28 	rate that would otherwise be paid to the provider. The commissioner shall adjust the rates 
182.29 	paid on or after January 1, 2007, topay the prepaid health plans under contract with the 
182.30 	commissioner amounts sufficient to reflect this rate increase. The prepaid health plan must 
182.31 	pass this rate increase to providers who have been identified by the commissioner as 
182.32 	critical access dental providers under section 256B.76, paragraph (c).

182.33 	Sec. 39. Minnesota Statutes 2006, section 256L.15, subdivision 1, is amended to read:
183.1 		Subdivision 1.Premium determination. (a) Families with children and individuals 
183.2 	shall pay a premium determined according to subdivision 2.
183.3 	(b) Pregnant women and children under age two are exempt from the provisions 
183.4 	of section 256L.06, subdivision 3, paragraph (b), clause (3), requiring disenrollment 
183.5 	for failure to pay premiums. For pregnant women, this exemption continues until the 
183.6 	first day of the month following the 60th day postpartum. Women who remain enrolled 
183.7 	during pregnancy or the postpartum period, despite nonpayment of premiums, shall be 
183.8 	disenrolled on the first of the month following the 60th day postpartum for the penalty 
183.9 	period that otherwise applies under section 256L.06, unless they begin paying premiums. 
183.10 	(c) Members of the military and their families who meet the eligibility criteria 
183.11 	for MinnesotaCare upon eligibility approval made within 24 months following the end 
183.12 	of the member's tour of active duty shall have their premiums paid by the commissioner. 
183.13 	The effective date of coverage for an individual or family who meets the criteria of this 
183.14 	paragraph shall be the first day of the month following the month in which eligibility is 
183.15 	approved. This exemption applies for 12 months. 

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

183.19 	Sec. 40. Minnesota Statutes 2006, section 256L.15, subdivision 2, is amended to read:
183.20 		Subd. 2.Sliding fee scale; monthly gross individual or family income. (a) The 
183.21 	commissioner shall establish a sliding fee scale to determine the percentage of monthly 
183.22 	gross individual or family income that households at different income levels must pay 
183.23 	to obtain coverage through the MinnesotaCare program. The sliding fee scale must be 
183.24 	based on the enrollee's monthly gross individual or family income. The sliding fee scale 
183.25 	must contain separate tables based on enrollment of one, two, or three or more persons. 
183.26 	The sliding fee scale begins with a premium of 1.5 percent of monthly gross individual or 
183.27 	family income for individuals or families with incomes below the limits for the medical 
183.28 	assistance program for families and children in effect on January 1, 1999, and proceeds 
183.29 	through the following evenly spaced steps: 1.8, 2.3, 3.1, 3.8, 4.8, 5.9, 7.4, and 8.8 percent. 
183.30 	These percentages are matched to evenly spaced income steps ranging from the medical 
183.31 	assistance income limit for families and children in effect on January 1, 1999, to 275 
183.32 	percent of the federal poverty guidelines for the applicable family size, up to a family size 
183.33 	of five. The sliding fee scale for a family of five must be used for families of more than 
183.34 	five. Effective October 1, 2003, the commissioner shall increase each percentage by 0.5 
183.35 	percentage points for enrollees with income greater than 100 percent but not exceeding 
184.1 	200 percent of the federal poverty guidelines and shall increase each percentage by 1.0 
184.2 	percentage points for families and children with incomes greater than 200 percent of 
184.3 	the federal poverty guidelines. The sliding fee scale and percentages are not subject to 
184.4 	the provisions of chapter 14. If a family or individual reports increased income after 
184.5 	enrollment, premiums shall be adjusted at the time the change in income is reported.
184.6 	(b) Children in Families whose gross income is above 275 percent of the federal 
184.7 	poverty guidelines shall pay the maximum premium. The maximum premium is defined 
184.8 	as a base charge for one, two, or three or more enrollees so that if all MinnesotaCare 
184.9 	cases paid the maximum premium, the total revenue would equal the total cost of 
184.10 	MinnesotaCare medical coverage and administration. In this calculation, administrative 
184.11 	costs shall be assumed to equal ten percent of the total. The costs of medical coverage 
184.12 	for pregnant women and children under age two and the enrollees in these groups shall 
184.13 	be excluded from the total. The maximum premium for two enrollees shall be twice the 
184.14 	maximum premium for one, and the maximum premium for three or more enrollees shall 
184.15 	be three times the maximum premium for one.
184.16 	(c) After calculating the percentage of premium each enrollee shall pay under 
184.17 	paragraph (a), eight percent shall be added to the premium.

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

184.20 	Sec. 41. Minnesota Statutes 2006, section 256L.15, subdivision 3, is amended to read:
184.21 		Subd. 3.Exceptions to sliding scale. Children in families with income at or below 
184.22 	150200 percent of the federal poverty guidelines pay a monthly premium of $4.

184.23 	Sec. 42. Minnesota Statutes 2006, section 256L.15, subdivision 4, is amended to read:
184.24 		Subd. 4.Exception for transitioned adults. County agencies shall pay premiums 
184.25 	for single adults and households with no children formerly enrolled in general assistance 
184.26 	medical care and enrolled in MinnesotaCare according to section 256D.03, subdivision 3, 
184.27 	until six-month renewal. The county agency has the option of continuing to pay premiums 
184.28 	for these enrollees past the first six-month renewal period.

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

184.30 	Sec. 43. Minnesota Statutes 2006, section 256L.17, subdivision 2, is amended to read:
184.31 		Subd. 2.Limit on total assets. (a) Effective July 1, 2002, or upon federal approval, 
184.32 	whichever is later, in order to be eligible for the MinnesotaCare program, a household of 
185.1 	two or more persons must not own more than $20,000 in total net assets, and a household 
185.2 	of one person must not own more than $10,000 in total net assets.
185.3 	(b) For purposes of this subdivision, assets are determined according to section 
185.4 	256B.056, subdivision 3c, except that workers' compensation settlements received due to 
185.5 	a work-related injury shall not be considered. 
185.6 	(c) State-funded MinnesotaCare is not available for applicants or enrollees who are 
185.7 	otherwise eligible for medical assistance but fail to verify assets. Enrollees who become 
185.8 	eligible for federally funded medical assistance shall be terminated from state-funded 
185.9 	MinnesotaCare and transferred to medical assistance.

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

185.12 	Sec. 44. Minnesota Statutes 2006, section 256L.17, subdivision 7, is amended to read:
185.13 		Subd. 7.Exception for certain adults. Single adults and households with 
185.14 	no children formerly enrolled in general assistance medical care and enrolled in 
185.15 	MinnesotaCare according to section 256D.03, subdivision 3, are exempt from the 
185.16 	requirements of this section until six-month renewal.

185.17 	Sec. 45. [256L.20] MINNESOTACARE OPTION FOR SMALL EMPLOYERS.
185.18 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
185.19 	have the meanings given them.
185.20 	(b) "Dependent" means an unmarried child who is under the age of 21 and who is 
185.21 	not eligible for employer-subsidized health coverage. 
185.22 	(c) "Eligible employee" means an employee who works at least 20 hours per week 
185.23 	for an eligible employer. Eligible employee does not include an employee who works 
185.24 	on a temporary or substitute basis or who does not work more than 26 weeks annually. 
185.25 	Coverage of an eligible employee includes the employee's spouse if the spouse does not 
185.26 	have access to employer-subsidized health coverage. 
185.27 	(d) "Eligible employer" means a business that employs at least two, but not more 
185.28 	than 50, eligible employees, the majority of whom are employed in the state, and includes 
185.29 	a municipality that has 50 or fewer employees. 
185.30 	(e) "Employer-subsidized health coverage" has the meaning given under section 
185.31 	256L.07, subdivision 2, paragraphs (c) and (d).
185.32 	(f) "Maximum premium" has the meaning given under section 256L.15, subdivision 
185.33 	2, paragraph (b), except that the cost of medical coverage for single adults and households 
185.34 	without children formerly enrolled in general assistance medical care and enrolled in 
186.1 	MinnesotaCare in accordance with section 256D.03, subdivision 3, paragraph (c), are 
186.2 	excluded from the total cost when determining the maximum premium.
186.3 	(g) "Participating employer" means an eligible employer who meets the requirements 
186.4 	in subdivision 3 and applies to the commissioner to enroll its eligible employees and their 
186.5 	dependents in the MinnesotaCare program.
186.6 	(h) "Program" means the MinnesotaCare program. 
186.7 		Subd. 2.Application and renewal procedures. (a) Eligible employees and their 
186.8 	dependents may enroll in MinnesotaCare through their employer if their employer meets 
186.9 	the requirements of subdivision 3. The commissioner shall establish procedures for an 
186.10 	eligible employer to participate in the program. The commissioner shall provide an 
186.11 	employer with applications for each eligible employee. The employee must fill out the 
186.12 	application and submit it to the employer. The employer must submit the completed 
186.13 	applications to the commissioner. The commissioner shall determine eligibility for the 
186.14 	program and determine the premiums owed by the employer for each eligible employee. 
186.15 	The commissioner may require eligible employees to provide income verification to 
186.16 	determine premiums.
186.17 	(b) The effective date of coverage is according to section 256L.05, subdivision 3.
186.18 	(c) An employer's eligibility must be renewed every 12 months. At that time, all 
186.19 	eligible employees enrolled in the program regardless of their enrollment date must 
186.20 	reapply.
186.21 	(d) A participating employer must inform the commissioner of any changes in its 
186.22 	employees and premiums must be adjusted accordingly beginning the first day of the 
186.23 	month following the month in which the change is reported. An employer's premiums 
186.24 	shall not be adjusted due to a change in an employee's income until the next renewal 
186.25 	period. Eligible employees hired after enrollment must fill out an application and submit 
186.26 	the application to the commissioner. Employees who terminate their employment with 
186.27 	the participating employer shall remain enrolled in the program until the last day of the 
186.28 	month in which employment is terminated. A terminating employee may remain in the 
186.29 	MinnesotaCare program if the employee meets the eligibility requirements of enrollment 
186.30 	described in sections 256L.01 to 256L.18.
186.31 		Subd. 3.Employer requirements.  In order to participate, an eligible employer 
186.32 	must meet the following requirements:
186.33 	(1) agree to contribute toward the cost of the premium for the employee, the 
186.34 	employee's spouse, and the employee's dependents according to subdivision 4; 
187.1 	(2) certify that each eligible employee was informed of the availability of coverage 
187.2 	through the program and that at least 75 percent of its eligible employees are planning to 
187.3 	or are enrolled in the program; and
187.4 	(3) have not provided employer-subsidized health coverage as an employee benefit 
187.5 	during the previous 12 months, as defined in section 256L.07, subdivision 2, paragraph (c). 
187.6 		Subd. 4.Premiums. (a) The premium for coverage provided under this section is 
187.7 	equal to the maximum premium as defined in subdivision 1 regardless of the income 
187.8 	of the eligible employee.
187.9 	(b) For eligible employees without dependents with a gross family income equal to 
187.10 	or less than 200 percent of the federal poverty guidelines or 215 percent of the federal 
187.11 	poverty guidelines on or after July 1, 2009, and for eligible employees with dependents 
187.12 	whose gross family income is equal to or less than 275 percent of the federal poverty 
187.13 	guidelines, the participating employer shall pay 50 percent of the premium established 
187.14 	under paragraph (a) for the eligible employee, the employee's spouse, and any dependents, 
187.15 	if applicable. 
187.16 	(c) For eligible employees without dependents with a gross family income over 200 
187.17 	percent of the federal poverty guidelines or 215 percent of the federal poverty guidelines 
187.18 	on or after July 1, 2009, and for eligible employees with dependents with a gross family 
187.19 	income over 275 percent of the federal poverty guidelines, the participating employer shall 
187.20 	pay the full cost of the premium established under paragraph (a) for the eligible employee, 
187.21 	the employee's spouse, and any dependents, if applicable. The participating employer may 
187.22 	require the employee to pay a portion of the cost of the premium so long as the employer 
187.23 	pays at least 50 percent. If the employer requires the employee to pay a portion of the 
187.24 	premium, the employee shall pay the portion of the cost to the employer. 
187.25 	(d) The commissioner shall collect premium payments from participating employers 
187.26 	for eligible employees, spouses, and dependents who are covered by the program as 
187.27 	provided under this section. All premiums collected shall be deposited in the health care 
187.28 	access fund. 
187.29 	(e) Nonpayment of premiums by a participating employer will result in the 
187.30 	disenrollment of all eligible employees, spouses, and dependents from the program 
187.31 	effective the end of the month in which the premium was due.
187.32 		Subd. 5.Coverage. (a) The coverage offered to those enrolled in the program under 
187.33 	this section shall include all health services described under section 256L.03 and all 
187.34 	co-payments and coinsurance requirements under section 256L.03 shall apply except for 
187.35 	as provided under paragraph (b).
188.1 	(b) Notwithstanding paragraph (a), the inpatient hospital benefit annual limit in 
188.2 	section 256L.03, subdivision 3, does not apply to adult enrollees enrolled in the program 
188.3 	under this section.
188.4 		Subd. 6.Enrollment. For purposes of enrollment under this section, income 
188.5 	eligibility limits established under sections 256L.04 and 256L.07, asset limits established 
188.6 	under section 256L.17, and the barriers established under section 256L.07, subdivision 2 
188.7 	or 3, do not apply to applicants eligible for this program unless specified in this section. 
188.8 	The residency requirement under section 256L.09 applies to this section.
188.9 		Subd. 7.Outreach. The commissioner shall provide information on the availability 
188.10 	of this buy-in option for small employers and application forms to entities that provide 
188.11 	insurance information to small employers, including, but not limited to, insurance agents 
188.12 	and chambers of commerce. The commissioner shall establish an assistance fee of $25 per 
188.13 	enrolled employee for such entities that assist eligible employers and their employees in 
188.14 	applying to the program.
188.15 		Subd. 8.Provider payment. (a) Payment to providers under this section shall be 
188.16 	the same rates and conditions under section 256L.12 except that payments for inpatient 
188.17 	hospital services for employees without dependents and for the adult employees with 
188.18 	dependents with gross family incomes greater than 200 percent of the federal poverty 
188.19 	guidelines shall be paid according to paragraph (b).
188.20 	(b) The commissioner shall pay hospitals the medical assistance rate for inpatient 
188.21 	hospital services established under section 256.969 minus the $20,000 annual inpatient 
188.22 	benefit limit and any applicable co-payments or coinsurance requirements.

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

188.24 	Sec. 46. HENNEPIN COUNTY PILOT PROJECT.
 188.25 	The commissioner of human services shall support a pilot project in Hennepin 
188.26 	County to demonstrate the effectiveness of alternative strategies to redetermine eligibility 
188.27 	for certain recipient populations in the medical assistance program. The target populations 
188.28 	for the demonstration are persons who are eligible based upon disability or age, who have 
188.29 	chronic medical conditions, and who are expected to experience minimal change in income 
188.30 	or assets from month to month. The commissioner and the county shall analyze the issues 
188.31 	and strategies employed and the outcomes to determine reasonable efforts to streamline 
188.32 	eligibility statewide. The duration of the pilot project shall be no more than two years. 
188.33 	The commissioner shall apply for any federal waivers needed to implement this section.

188.34 	Sec. 47. PHARMACY REPORT ON DRA IMPACT.
 189.1 		Subdivision 1.Fiscal impact of deficit reduction act. The commissioner of human 
189.2 	services shall report to the legislature by January 15, 2008, with a preliminary report due 
189.3 	to the pharmacy payment reform advisory committee by November 1, 2007, on the fiscal 
189.4 	impact of Deficit Reduction Act reforms on the Minnesota Medicaid pharmacy program, 
189.5 	including but not limited to:
189.6 	(1) overall cost reductions to the Minnesota Medicaid pharmacy program as a result 
189.7 	of the Deficit Reduction Act of 2005;
189.8 	(2) the impact of reforms on the federal upper limit on pharmacy reimbursement, 
189.9 	and the amount that the dispensing fee for multiple-source generic drugs would have to 
189.10 	be adjusted to offset any reductions resulting from federal upper limits implemented as a 
189.11 	result of the Deficit Reduction Act of 2005;
189.12 	(3) the cost of reduced federal rebates received from pharmaceutical manufacturers 
189.13 	as a result of Deficit Reduction Act reforms, and strategies that could be employed in 
189.14 	administering the Medicaid drug formulary to compensate for lost manufacturer rebates; 
189.15 	(4) a comparison of published federal upper limits and state maximum allowable 
189.16 	cost (MAC) prices prior to and following implementation of the Deficit Reduction Act 
189.17 	federal upper limit reforms;
189.18 	(5) the number of participating pharmacies in the program as of January 1, 2007, 
189.19 	July 1, 2007, and November 1, 2007; and
189.20 	(6) the Minnesota Medicaid fee-for-service pharmacy program rate of generic 
189.21 	dispensing before and after state implementation of Deficit Reduction Act of 2005 generic 
189.22 	reimbursement reform.

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

189.24 	Sec. 48. CHIROPRACTIC COVERAGE.
 189.25 	The commissioner of human services, through the Health Services Policy 
189.26 	Committee established under Minnesota Statutes, section 256B.0625, subdivision 3c, and 
189.27 	using existing funding, shall study whether medical assistance coverage for chiropractic 
189.28 	services should be expanded to include initial and progress exams, and shall report 
189.29 	recommendations to the legislature by January 15, 2008.

189.30 	Sec. 49. MINNESOTACARE APPLICATION PROCESSING CENTERS.
 189.31 	If the commissioner of human services establishes regional out-state processing 
189.32 	centers for MinnesotaCare application processing, one of the centers must be located in 
189.33 	Granite Falls to provide processing services to the southern portion of the state.

190.1 	Sec. 50. IMPLEMENTATION.
 190.2 	The commissioner of human services shall implement the amendments to Minnesota 
190.3 	Statutes, sections 256.969, subdivision 9; 256.969, subdivision 27; and 256B.199, on the 
190.4 	earliest date for which the Centers for Medicare and Medicaid Services grants approval. 
190.5 	The commissioner may alter the reporting date for Hennepin County and Hennepin 
190.6 	County Medical Center in Minnesota Statutes, section 256.969, subdivision 9, paragraph 
190.7 	(f), clause (2), to reflect the approved effective date.

190.8 	Sec. 51.  REPEALER.
 190.9 	Minnesota Statutes 2006, sections 256B.0631, subdivision 4; 256L.035; and 
190.10 	256L.07, subdivision 2a, are repealed.

190.11 	ARTICLE 6
190.12 	CONTINUING CARE POLICY

190.13 	Section 1. Minnesota Statutes 2006, section 144A.351, is amended to read:
190.14 	144A.351 BALANCING LONG-TERM CARE: REPORT REQUIRED.
190.15 	The commissioners of health and human services, with the cooperation of counties 
190.16 	and regional entities, shall prepare a report to the legislature by JanuaryAugust 15, 2004, 
190.17 	and biennially thereafter, regarding the status of the full range of long-term care services 
190.18 	for the elderly in Minnesota. The report shall address:
190.19 	(1) demographics and need for long-term care in Minnesota;
190.20 	(2) summary of county and regional reports on long-term care gaps, surpluses, 
190.21 	imbalances, and corrective action plans;
190.22 	(3) status of long-term care services by county and region including:
190.23 	(i) changes in availability of the range of long-term care services and housing 
190.24 	options;
190.25 	(ii) access problems regarding long-term care; and
190.26 	(iii) comparative measures of long-term care availability and progress over time; and
190.27 	(4) recommendations regarding goals for the future of long-term care services, 
190.28 	policy changes, and resource needs.

190.29 	Sec. 2. Minnesota Statutes 2006, section 252.32, subdivision 3, is amended to read:
190.30 		Subd. 3.Amount of support grant; use. Support grant amounts shall be 
190.31 	determined by the county social service agency. Services and items purchased with a 
190.32 	support grant must:
191.1 	(1) be over and above the normal costs of caring for the dependent if the dependent 
191.2 	did not have a disability;
191.3 	(2) be directly attributable to the dependent's disabling condition; and
191.4 	(3) enable the family to delay or prevent the out-of-home placement of the dependent.
191.5 	The design and delivery of services and items purchased under this section must 
191.6 	suit the dependent's chronological age and be provided in the least restrictive environment 
191.7 	possible, consistent with the needs identified in the individual service plan.
191.8 	Items and services purchased with support grants must be those for which there 
191.9 	are no other public or private funds available to the family. Fees assessed to parents 
191.10 	for health or human services that are funded by federal, state, or county dollars are not 
191.11 	reimbursable through this program.
191.12 	In approving or denying applications, the county shall consider the following factors:
191.13 	(1) the extent and areas of the functional limitations of the disabled child;
191.14 	(2) the degree of need in the home environment for additional support; and
191.15 	(3) the potential effectiveness of the grant to maintain and support the person in 
191.16 	the family environment.
191.17 	The maximum monthly grant amount shall be $250 per eligible dependent, or 
191.18 	$3,000 per eligible dependent per state fiscal year, within the limits of available funds and 
191.19 	as adjusted by any legislatively authorized cost of living adjustment. The county social 
191.20 	service agency may consider the dependent's supplemental security income in determining 
191.21 	the amount of the support grant.
191.22 	Any adjustments to their monthly grant amount must be based on the needs of the 
191.23 	family and funding availability.

191.24 	Sec. 3. Minnesota Statutes 2006, section 256.476, subdivision 1, is amended to read:
191.25 		Subdivision 1.Purpose and goals. The commissioner of human services shall 
191.26 	establish a consumer support grant program for individuals with functional limitations and 
191.27 	their families who wish to purchase and secure their own supports. The commissioner and 
191.28 	local agencies shall jointly develop an implementation plan which must include a way to 
191.29 	resolve the issues related to county liability. The program shall:
191.30 	(1) make support grants available to individuals or families as an effective alternative 
191.31 	to the developmental disability family support program, personal care attendant services, 
191.32 	home health aide services, and private duty nursing services;
191.33 	(2) provide consumers more control, flexibility, and responsibility over their services 
191.34 	and supports;
191.35 	(3) promote local program management and decision making; and
192.1 	(4) encourage the use of informal and typical community supports.

192.2 	Sec. 4. Minnesota Statutes 2006, section 256.476, subdivision 2, is amended to read:
192.3 		Subd. 2.Definitions. For purposes of this section, the following terms have the 
192.4 	meanings given them:
192.5 	(a) "County board" means the county board of commissioners for the county of 
192.6 	financial responsibility as defined in section 256G.02, subdivision 4, or its designated 
192.7 	representative. When a human services board has been established under sections 402.01
192.8 	to 402.10, it shall be considered the county board for the purposes of this section. 
192.9 	(b) "Family" means the person's birth parents, adoptive parents or stepparents, 
192.10 	siblings or stepsiblings, children or stepchildren, grandparents, grandchildren, niece, 
192.11 	nephew, aunt, uncle, or spouse. For the purposes of this section, a family member is 
192.12 	at least 18 years of age.
192.13 	(c) "Functional limitations" means the long-term inability to perform an activity or 
192.14 	task in one or more areas of major life activity, including self-care, understanding and use 
192.15 	of language, learning, mobility, self-direction, and capacity for independent living. For the 
192.16 	purpose of this section, the inability to perform an activity or task results from a mental, 
192.17 	emotional, psychological, sensory, or physical disability, condition, or illness.
192.18 	(d) "Informed choice" means a voluntary decision made by the person or,
192.19 	the person's legal representative, or other authorized representative after becoming 
192.20 	familiarized with the alternatives to:
192.21 	(1) select a preferred alternative from a number of feasible alternatives;
192.22 	(2) select an alternative which may be developed in the future; and
192.23 	(3) refuse any or all alternatives.
192.24 	(e) "Local agency" means the local agency authorized by the county board or, 
192.25 	for counties not participating in the consumer grant program by July 1, 2002, the 
192.26 	commissioner, to carry out the provisions of this section.
192.27 	(f) "Person" or "persons" means a person or persons meeting the eligibility criteria in 
192.28 	subdivision 3.
192.29 	(g) "Authorized representative" means an individual designated by the person or 
192.30 	their legal representative to act on their behalf. This individual may be a family member, 
192.31 	guardian, representative payee, or other individual designated by the person or their legal 
192.32 	representative, if any, to assist in purchasing and arranging for supports. For the purposes 
192.33 	of this section, an authorized representative is at least 18 years of age.
192.34 	(h) "Screening" means the screening of a person's service needs under sections 
192.35 	256B.0911 and 256B.092. 
193.1 	(i) "Supports" means services, care, aids, environmental modifications, or assistance 
193.2 	purchased by the person or the person's family, the person's legal representative, or other 
193.3 	authorized representative. Examples of supports include respite care, assistance with daily 
193.4 	living, and assistive technology. For the purpose of this section, notwithstanding the 
193.5 	provisions of section 144A.43, supports purchased under the consumer support program 
193.6 	are not considered home care services. 
193.7 	(j) "Program of origination" means the program the individual transferred from 
193.8 	when approved for the consumer support grant program.

193.9 	Sec. 5. Minnesota Statutes 2006, section 256.476, subdivision 3, is amended to read:
193.10 		Subd. 3.Eligibility to apply for grants. (a) A person is eligible to apply for a 
193.11 	consumer support grant if the person meets all of the following criteria:
193.12 	(1) the person is eligible for and has been approved to receive services under 
193.13 	medical assistance as determined under sections 256B.055 and 256B.056 or the person 
193.14 	has been approved to receive a grant under the developmental disability family support 
193.15 	program under section 252.32; 
193.16 	(2) the person is able to direct and purchase the person's own care and supports, or 
193.17 	the person has a family member, legal representative, or other authorized representative 
193.18 	who can purchase and arrange supports on the person's behalf;
193.19 	(3) the person has functional limitations, requires ongoing supports to live in the 
193.20 	community, and is at risk of or would continue institutionalization without such supports; 
193.21 	and
193.22 	(4) the person will live in a home. For the purpose of this section, "home" means the 
193.23 	person's own home or home of a person's family member. These homes are natural home 
193.24 	settings and are not licensed by the Department of Health or Human Services.
193.25 	(b) Persons may not concurrently receive a consumer support grant if they are:
193.26 	(1) receiving personal care attendant and home health aide services, or private duty 
193.27 	nursing under section 256B.0625; a developmental disability family support grant; or 
193.28 	alternative care services under section 256B.0913; or 
193.29 	(2) residing in an institutional or congregate care setting.
193.30 	(c) A person or person's family receiving a consumer support grant shall not be 
193.31 	charged a fee or premium by a local agency for participating in the program.
193.32 	(d) Individuals receiving home and community-based waivers under United States 
193.33 	Code, title 42, section 1396h(c), are not eligible for the consumer support grant, except 
193.34 	for individuals receiving consumer support grants before July 1, 2003, as long as other 
193.35 	eligibility criteria are met.
194.1 	(e) The commissioner shall establish a budgeted appropriation each fiscal year 
194.2 	for the consumer support grant program. The number of individuals participating in 
194.3 	the program will be adjusted so the total amount allocated to counties does not exceed 
194.4 	the amount of the budgeted appropriation. The budgeted appropriation will be adjusted 
194.5 	annually to accommodate changes in demand for the consumer support grants.

194.6 	Sec. 6. Minnesota Statutes 2006, section 256.476, subdivision 4, is amended to read:
194.7 		Subd. 4.Support grants; criteria and limitations. (a) A county board may 
194.8 	choose to participate in the consumer support grant program. If a county has not chosen 
194.9 	to participate by July 1, 2002, the commissioner shall contract with another county or 
194.10 	other entity to provide access to residents of the nonparticipating county who choose 
194.11 	the consumer support grant option. The commissioner shall notify the county board 
194.12 	in a county that has declined to participate of the commissioner's intent to enter into 
194.13 	a contract with another county or other entity at least 30 days in advance of entering 
194.14 	into the contract. The local agency shall establish written procedures and criteria to 
194.15 	determine the amount and use of support grants. These procedures must include, at least, 
194.16 	the availability of respite care, assistance with daily living, and adaptive aids. The local 
194.17 	agency may establish monthly or annual maximum amounts for grants and procedures 
194.18 	where exceptional resources may be required to meet the health and safety needs of the 
194.19 	person on a time-limited basis, however, the total amount awarded to each individual may 
194.20 	not exceed the limits established in subdivision 11.
194.21 	(b) Support grants to a person or a person's family, a person's legal representative, 
194.22 	or other authorized representative will be provided through a monthly subsidy payment 
194.23 	and be in the form of cash, voucher, or direct county payment to vendor. Support grant 
194.24 	amounts must be determined by the local agency. Each service and item purchased with a 
194.25 	support grant must meet all of the following criteria:
194.26 	(1) it must be over and above the normal cost of caring for the person if the person 
194.27 	did not have functional limitations;
194.28 	(2) it must be directly attributable to the person's functional limitations;
194.29 	(3) it must enable the person or the person's family, a person's legal representative, 
194.30 	or other authorized representative to delay or prevent out-of-home placement of the 
194.31 	person; and
194.32 	(4) it must be consistent with the needs identified in the service agreement, when 
194.33 	applicable.
194.34 	(c) Items and services purchased with support grants must be those for which there 
194.35 	are no other public or private funds available to the person or the person's family, a person's 
195.1 	legal representative, or other authorized representative. Fees assessed to the person or the 
195.2 	person's family for health and human services are not reimbursable through the grant.
195.3 	(d) In approving or denying applications, the local agency shall consider the 
195.4 	following factors:
195.5 	(1) the extent and areas of the person's functional limitations;
195.6 	(2) the degree of need in the home environment for additional support; and
195.7 	(3) the potential effectiveness of the grant to maintain and support the person in the 
195.8 	family environment or the person's own home.
195.9 	(e) At the time of application to the program or screening for other services, 
195.10 	the person or the person's family, a person's legal representative, or other authorized 
195.11 	representative shall be provided sufficient information to ensure an informed choice 
195.12 	of alternatives by the person, the person's legal representative, or other authorized 
195.13 	representative, if any, or the person's family. The application shall be made to the local 
195.14 	agency and shall specify the needs of the person and family, the form and amount of 
195.15 	grant requested, the items and services to be reimbursed, and evidence of eligibility for 
195.16 	medical assistance.
195.17 	(f) Upon approval of an application by the local agency and agreement on a support 
195.18 	plan for the person or person's family, the local agency shall make grants to the person or 
195.19 	the person's family. The grant shall be in an amount for the direct costs of the services or 
195.20 	supports outlined in the service agreement.
195.21 	(g) Reimbursable costs shall not include costs for resources already available, such as 
195.22 	special education classes, day training and habilitation, case management, other services to 
195.23 	which the person is entitled, medical costs covered by insurance or other health programs, 
195.24 	or other resources usually available at no cost to the person or the person's family.
195.25 	(h) The state of Minnesota, the county boards participating in the consumer 
195.26 	support grant program, or the agencies acting on behalf of the county boards in the 
195.27 	implementation and administration of the consumer support grant program shall not be 
195.28 	liable for damages, injuries, or liabilities sustained through the purchase of support by 
195.29 	the individual, the individual's family, or the authorized representative under this section 
195.30 	with funds received through the consumer support grant program. Liabilities include but 
195.31 	are not limited to: workers' compensation liability, the Federal Insurance Contributions 
195.32 	Act (FICA), or the Federal Unemployment Tax Act (FUTA). For purposes of this section, 
195.33 	participating county boards and agencies acting on behalf of county boards are exempt 
195.34 	from the provisions of section 268.04.

195.35 	Sec. 7. Minnesota Statutes 2006, section 256.476, subdivision 5, is amended to read:
196.1 		Subd. 5.Reimbursement, allocations, and reporting. (a) For the purpose of 
196.2 	transferring persons to the consumer support grant program from the developmental 
196.3 	disability family support program and personal care assistant services, home health 
196.4 	aide services, or private duty nursing services, the amount of funds transferred by the 
196.5 	commissioner between the developmental disability family support program account, the 
196.6 	medical assistance account, or the consumer support grant account shall be based on each 
196.7 	county's participation in transferring persons to the consumer support grant program 
196.8 	from those programs and services.
196.9 	(b) At the beginning of each fiscal year, county allocations for consumer support 
196.10 	grants shall be based on:
196.11 	(1) the number of persons to whom the county board expects to provide consumer 
196.12 	supports grants;
196.13 	(2) their eligibility for current program and services;
196.14 	(3) the amount of nonfederal dollars allowed under subdivision 11; and
196.15 	(4) projected dates when persons will start receiving grants. County allocations shall 
196.16 	be adjusted periodically by the commissioner based on the actual transfer of persons or 
196.17 	service openings, and the nonfederal dollars associated with those persons or service 
196.18 	openings, to the consumer support grant program.
196.19 	(c) The amount of funds transferred by the commissioner from the medical 
196.20 	assistance account for an individual may be changed if it is determined by the county or its 
196.21 	agent that the individual's need for support has changed.
196.22 	(d) The authority to utilize funds transferred to the consumer support grant account 
196.23 	for the purposes of implementing and administering the consumer support grant program 
196.24 	will not be limited or constrained by the spending authority provided to the program 
196.25 	of origination.
196.26 	(e) The commissioner may use up to five percent of each county's allocation, as 
196.27 	adjusted, for payments for administrative expenses, to be paid as a proportionate addition 
196.28 	to reported direct service expenditures.
196.29 	(f) The county allocation for each individual or individual's family cannot exceed 
196.30 	the amount allowed under subdivision 11.
196.31 	(g) The commissioner may recover, suspend, or withhold payments if the county 
196.32 	board, local agency, or grantee does not comply with the requirements of this section.
196.33 	(h) Grant funds unexpended by consumers shall return to the state once a year. The 
196.34 	annual return of unexpended grant funds shall occur in the quarter following the end of 
196.35 	the state fiscal year.

197.1 	Sec. 8. Minnesota Statutes 2006, section 256.476, subdivision 10, is amended to read:
197.2 		Subd. 10.Consumer responsibilities. Persons receiving grants under this section 
197.3 	shall:
197.4 	(1) spend the grant money in a manner consistent with their agreement with the 
197.5 	local agency;
197.6 	(2) notify the local agency of any necessary changes in the grant or the items on 
197.7 	which it is spent;
197.8 	(3) notify the local agency of any decision made by the person, the a person's legal 
197.9 	representative, or the person's family or other authorized representative that would change 
197.10 	their eligibility for consumer support grants;
197.11 	(4) arrange and pay for supports; and
197.12 	(5) inform the local agency of areas where they have experienced difficulty securing 
197.13 	or maintaining supports.

197.14 	Sec. 9. Minnesota Statutes 2006, section 256.974, is amended to read:
197.15 	256.974 OFFICE OF OMBUDSMAN FOR OLDER MINNESOTANS
197.16 	LONG-TERM CARE; LOCAL PROGRAMS.
197.17 	The ombudsman for older Minnesotans long-term care serves in the classified service 
197.18 	under section 256.01, subdivision 7, in an office within the Minnesota Board on Aging that 
197.19 	incorporates the long-term care ombudsman program required by the Older Americans 
197.20 	Act, Public Law 100-75 as amended, United States Code, title 42, section 3027(a)(12)
197.21 	(9) and 3058g (a), and established within the Minnesota Board on Aging. The Minnesota 
197.22 	Board on Aging may make grants to and designate local programs for the provision of 
197.23 	ombudsman services to clients in county or multicounty areas. The local program may not 
197.24 	be an agency engaged in the provision of nursing home care, hospital care, or home care 
197.25 	services either directly or by contract, or have the responsibility for planning, coordinating, 
197.26 	funding, or administering nursing home care, hospital care, or home care services.

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

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

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

198.15 	Sec. 13. Minnesota Statutes 2006, section 256.9742, subdivision 4, is amended to read:
198.16 		Subd. 4.Access to long-term care and acute care facilities and clients. The 
198.17 	ombudsman or designee may:
198.18 	(1) enter any long-term care facility without notice at any time;
198.19 	(2) enter any acute care facility without notice during normal business hours;
198.20 	(3) enter any acute care facility without notice at any time to interview a patient or 
198.21 	observe services being provided to the patient as part of an investigation of a matter that is 
198.22 	within the scope of the ombudsman's authority, but only if the ombudsman's or designee's 
198.23 	presence does not intrude upon the privacy of another patient or interfere with routine 
198.24 	hospital services provided to any patient in the facility;
198.25 	(4) communicate privately and without restriction with any client in accordance 
198.26 	with section 144.651, as long as the ombudsman has the client's consent for such 
198.27 	communication; 
198.28 	(5) inspect records of a long-term care facility, home care service provider, or acute 
198.29 	care facility that pertain to the care of the client according to sectionssection 144.335and 
198.30 	144.651; and 
198.31 	(6) with the consent of a client or client's legal guardian, the ombudsman or 
198.32 	designated staff shall have access to review records pertaining to the care of the client 
198.33 	according to sectionssection 144.335and 144.651. If a client cannot consent and has no 
198.34 	legal guardian, access to the records is authorized by this section. 
199.1 	A person who denies access to the ombudsman or designee in violation of this 
199.2 	subdivision or aids, abets, invites, compels, or coerces another to do so is guilty of a 
199.3 	misdemeanor.

199.4 	Sec. 14. Minnesota Statutes 2006, section 256.9742, subdivision 6, is amended to read:
199.5 		Subd. 6.Prohibition against discrimination or retaliation. (a) No entity shall take 
199.6 	discriminatory, disciplinary, or retaliatory action against an employee or volunteer, or a 
199.7 	patient, resident, or guardian or family member of a patient, resident, or guardian for filing 
199.8 	in good faith a complaint with or providing information to the ombudsman or designee 
199.9 	including volunteers. A person who violates this subdivision or who aids, abets, invites, 
199.10 	compels, or coerces another to do so is guilty of a misdemeanor.
199.11 	(b) There shall be a rebuttable presumption that any adverse action, as defined below, 
199.12 	within 90 days of report, is discriminatory, disciplinary, or retaliatory. For the purpose 
199.13 	of this clause, the term "adverse action" refers to action taken by the entity involved in a 
199.14 	report against the person making the report or the person with respect to whom the report 
199.15 	was made because of the report, and includes, but is not limited to:
199.16 	(1) discharge or transfer from a facility;
199.17 	(2) termination of service;
199.18 	(3) restriction or prohibition of access to the facility or its residents;
199.19 	(4) discharge from or termination of employment;
199.20 	(5) demotion or reduction in remuneration for services; and
199.21 	(6) any restriction of rights set forth in section 144.651or,144A.44, or 144A.751. 

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

199.28 	Sec. 16. Minnesota Statutes 2006, section 256.975, is amended by adding a subdivision 
199.29 	to read:
199.30 		Subd. 2a.Electronic meetings. (a) Notwithstanding section 13D.01, the Minnesota 
199.31 	Board on Aging may conduct a meeting of its members by telephone or other electronic 
199.32 	means so long as the following conditions are met:
200.1 	(1) all members of the board participating in the meeting, wherever their physical 
200.2 	location, can hear one another and can hear all discussion and testimony;
200.3 	(2) members of the public present at the regular meeting location of the board can 
200.4 	hear all discussion and testimony and all votes of members of the board;
200.5 	(3) at least one member of the board is physically present at the regular meeting 
200.6 	location; and
200.7 	(4) all votes are conducted by roll call, so that each member's vote on each issue 
200.8 	can be identified and recorded.
200.9 	(b) Each member of the board participating in a meeting by telephone or other 
200.10 	electronic means is considered present at the meeting for purposes of determining a 
200.11 	quorum and participating in all proceedings.
200.12 	(c) If telephone or other electronic means is used to conduct a meeting, the board, 
200.13 	to the extent practical, shall allow a person to monitor the meeting electronically from 
200.14 	a remote location. The board may require the person making a connection to pay for 
200.15 	documented marginal costs that the board incurs as a result of the additional connection.
200.16 	(d) If telephone or other electronic means is used to conduct a regular, special, or 
200.17 	emergency meeting, the board shall provide notice of the regular meeting location, of the 
200.18 	fact that some members may participate by telephone or other electronic means, and of 
200.19 	the provisions of paragraph (c). The timing and method of providing notice is governed 
200.20 	by section 13D.04.

200.21 	Sec. 17. Minnesota Statutes 2006, section 256B.0621, subdivision 11, is amended to 
200.22 	read:
200.23 		Subd. 11.Data use agreement; Notice of relocation assistance. The commissioner 
200.24 	shall execute a data use agreement with the Centers for Medicare and Medicaid Services 
200.25 	to obtain the long-term care minimum data set data to assist residents of nursing facilities 
200.26 	who have establish a process with the Centers for Independent Living that allows a person 
200.27 	residing in a Minnesota nursing facility to receive needed information, consultation, and 
200.28 	assistance from one of the centers about the available community support options that may 
200.29 	enable the person to relocate to the community, if the person: (1) is under the age of 65, 
200.30 	(2) has indicated a desire to live in the community. The commissioner shall in turn enter 
200.31 	into agreements with the Centers for Independent Living to provide information about 
200.32 	assistance for persons who want to move to the community. The commissioner shall work 
200.33 	with the Centers for Independent Living on both the content of the information to be 
200.34 	provided and privacy protections for the individual residents, and (3) has signed a release 
200.35 	of information authorized by the person or the person's appointed legal representative. 
201.1 	The process established under this subdivision shall be coordinated with the long-term 
201.2 	care consultation service activities established in section 256B.0911.

201.3 	Sec. 18. Minnesota Statutes 2006, section 256B.0625, subdivision 23, is amended to 
201.4 	read:
201.5 		Subd. 23.Day treatment services. Medical assistance covers day treatment 
201.6 	services as specified in sections 245.462, subdivision 8, and 245.4871, subdivision 10, that 
201.7 	are provided under contract with the county board. Notwithstanding Minnesota Rules, 
201.8 	part 9505.0323, subpart 15, the commissioner may set authorization thresholds for day 
201.9 	treatment for adults according to section 256B.0625, subdivision 25. Notwithstanding 
201.10 	Minnesota Rules, part 9505.0323, subpart 15, effective July 1, 2004, medical assistance 
201.11 	covers day treatment services for children as specified under section 256B.0943. 

201.12 	Sec. 19. Minnesota Statutes 2006, section 256B.0655, subdivision 1f, is amended to 
201.13 	read:
201.14 		Subd. 1f.Personal care assistant. (a) "Personal care assistant" means a person who:
201.15 	(1) is at least 18 years old, except for persons 16 to 18 years of age who participated 
201.16 	in a related school-based job training program or have completed a certified home health 
201.17 	aide competency evaluation;
201.18 	(2) is able to effectively communicate with the recipient and personal care provider 
201.19 	organization;
201.20 	(3) effective July 1, 1996, has completed one of the training requirements as 
201.21 	specified in Minnesota Rules, part 9505.0335, subpart 3, items A to E paragraph (b);
201.22 	(4) has the ability to, and provides covered personal care assistant services according 
201.23 	to the recipient's care plan, responds appropriately to recipient needs, and reports changes 
201.24 	in the recipient's condition to the supervising qualified professional or physician;
201.25 	(5) is not a consumer of personal care assistant services;
201.26 	(6) maintains daily written records detailing:
201.27 	(i) the actual services provided to the recipient; and
201.28 	(ii) the amount of time spent providing the services; and
201.29 	(7) is subject to criminal background checks and procedures specified in chapter 
201.30 	245C.
201.31 	(b) Personal care assistant training must include successful completion of one or 
201.32 	more training requirements in:
202.1 	(1) a nursing assistant training program or its equivalent for which competency as a 
202.2 	nursing assistant is determined according to a test administered by the Minnesota State 
202.3 	Board of Technical Colleges;
202.4 	(2) a homemaker home health aide preservice training program using a curriculum 
202.5 	recommended by the Department of Health;
202.6 	(3) an accredited educational program for registered nurses or licensed practical 
202.7 	nurses;
202.8 	(4) a training program that provides the assistant with skills required to perform 
202.9 	personal care assistant services specified in subdivision 2, paragraph (d); or
202.10 	(5) a determination by the personal care provider that the assistant has, through 
202.11 	training or experience, the skills required to perform the personal care services specified in 
202.12 	subdivision 2.

202.13 	Sec. 20. Minnesota Statutes 2006, section 256B.0655, is amended by adding a 
202.14 	subdivision to read:
202.15 		Subd. 12.Personal care provider responsibilities. The personal care provider 
202.16 	shall:
202.17 	(1) employ or contract with services staff to provide personal care services and to 
202.18 	train services staff as necessary;
202.19 	(2) supervise the personal care services as provided in subdivision 2, paragraph (f);
202.20 	(3) employ a personal care assistant that a qualified recipient brings to the personal 
202.21 	care provider as the recipient's choice of assistant and who meets the employment 
202.22 	qualifications of the provider, except that a personal care provider who must comply with 
202.23 	the requirements of a governmental personnel administration system is exempt from 
202.24 	this clause;
202.25 	(4) bill the medical assistance program for a personal care service by the personal 
202.26 	care assistant and a visit by the qualified professional supervising the personal care 
202.27 	assistant;
202.28 	(5) establish a grievance mechanism to resolve consumer complaints about personal 
202.29 	care services, including the personal care provider's decision whether to employ the 
202.30 	qualified recipient's choice of a personal care assistant;
202.31 	(6) keep records as required in Minnesota Rules, parts 9505.2160 to 9505.2195;
202.32 	(7) perform functions and provide services specified in the personal care provider's 
202.33 	contract;
202.34 	(8) comply with applicable rules and statutes; and
203.1 	(9) perform other functions as necessary to carry out the responsibilities in clauses 
203.2 	(1) to (8).

203.3 	Sec. 21. Minnesota Statutes 2006, section 256B.0655, is amended by adding a 
203.4 	subdivision to read:
203.5 		Subd. 13.Personal care provider; employment prohibition. A personal care 
203.6 	provider shall not employ a person to provide personal care service for a qualified 
203.7 	recipient if the person:
203.8 	(1) refuses to provide full disclosure of criminal history records as specified in 
203.9 	subdivision 1g, clause (1);
203.10 	(2) has been convicted of a crime that directly relates to the occupation of providing 
203.11 	personal care services to a qualified recipient;
203.12 	(3) has jeopardized the health or welfare of a vulnerable adult through physical 
203.13 	abuse, sexual abuse, or neglect as defined in section 626.557; or
203.14 	(4) is misusing or is dependent on mood-altering chemicals, including alcohol, to 
203.15 	the extent that the personal care provider knows or has reason to believe that the use of 
203.16 	chemicals has a negative effect on the person's ability to provide personal care services 
203.17 	or the use of chemicals is apparent during the hours the person is providing personal 
203.18 	care services.

203.19 	Sec. 22. Minnesota Statutes 2006, section 256B.0655, is amended by adding a 
203.20 	subdivision to read:
203.21 		Subd. 14.Supervision of personal care services. A personal care service to a 
203.22 	qualified recipient as described in subdivision 4 shall be under the supervision of a 
203.23 	qualified professional who shall have the following duties:
203.24 	(1) ensure that the personal care assistant is capable of providing the required 
203.25 	personal care services through direct observation of the assistant's work or through 
203.26 	consultation with the qualified recipient;
203.27 	(2) ensure that the personal care assistant is knowledgeable about the plan of 
203.28 	personal care services before the personal care assistant performs personal care services;
203.29 	(3) ensure that the personal care assistant is knowledgeable about essential 
203.30 	observations of the recipient's health, and about any conditions that should be immediately 
203.31 	brought to the attention of either the qualified professional or the attending physician;
203.32 	(4) evaluate the personal care services of a recipient through direct observation of 
203.33 	the personal care assistant's work or through consultation with the qualified recipient. 
203.34 	Evaluation shall be made:
204.1 	(i) within 14 days after the placement of a personal care assistant with the qualified 
204.2 	recipient;
204.3 	(ii) at least once every 30 days during the first 90 days after the qualified recipient 
204.4 	first receives personal care services according to the plan of personal care service; and
204.5 	(iii) at least once every 120 days following the period of evaluations in item (ii). The 
204.6 	qualified professional shall record in writing the results of the evaluation and actions taken 
204.7 	to correct any deficiencies in the work of the personal care assistant;
204.8 	(5) review, together with the recipient, and revise, as necessary, the plan of 
204.9 	personal care services at least once every 120 days after a plan of personal care services 
204.10 	is developed;
204.11 	(6) ensure that the personal care assistant and recipient are knowledgeable about a 
204.12 	change in the plan of personal care services;
204.13 	(7) ensure that records are kept, showing the services provided to the recipient 
204.14 	by the personal care assistant as described in subdivision 2, paragraph (f), and the time 
204.15 	spent providing the services;
204.16 	(8) determine that a qualified recipient is still capable of directing the recipient's 
204.17 	own care or has a responsible party; and
204.18 	(9) determine with a physician that a recipient is a qualified recipient.

204.19 	Sec. 23. Minnesota Statutes 2006, section 256B.0911, subdivision 3b, is amended to 
204.20 	read:
204.21 		Subd. 3b.Transition assistance. (a) A long-term care consultation team shall 
204.22 	provide assistance to persons residing in a nursing facility, hospital, regional treatment 
204.23 	center, or intermediate care facility for persons with developmental disabilities who 
204.24 	request or are referred for assistance. Transition assistance must include assessment, 
204.25 	community support plan development, referrals to Minnesota health care programs, 
204.26 	and referrals to programs that provide assistance with housing. Transition assistance 
204.27 	must also include information about the Centers for Independent Living and about other 
204.28 	organizations that can provide assistance with relocation efforts, and information about 
204.29 	contacting these organizations to obtain their assistance and support. 
204.30 	(b) The county shall develop transition processes with institutional social workers 
204.31 	and discharge planners to ensure that:
204.32 	(1) persons admitted to facilities receive information about transition assistance 
204.33 	that is available;
204.34 	(2) the assessment is completed for persons within ten working days of the date of 
204.35 	request or recommendation for assessment; and
205.1 	(3) there is a plan for transition and follow-up for the individual's return to the 
205.2 	community. The plan must require notification of other local agencies when a person 
205.3 	who may require assistance is screened by one county for admission to a facility located 
205.4 	in another county.
205.5 	(c) If a person who is eligible for a Minnesota health care program is admitted to a 
205.6 	nursing facility, the nursing facility must include a consultation team member or the case 
205.7 	manager in the discharge planning process.

205.8 	Sec. 24. Minnesota Statutes 2006, section 256B.0911, subdivision 4b, is amended to 
205.9 	read:
205.10 		Subd. 4b.Exemptions and emergency admissions. (a) Exemptions from the 
205.11 	federal screening requirements outlined in subdivision 4a, paragraphs (b) and (c), are 
205.12 	limited to:
205.13 	(1) a person who, having entered an acute care facility from a certified nursing 
205.14 	facility, is returning to a certified nursing facility;
205.15 	(2) a person transferring from one certified nursing facility in Minnesota to another 
205.16 	certified nursing facility in Minnesota; and
205.17 	(3) a person, 21 years of age or older, who satisfies the following criteria, as specified 
205.18 	in Code of Federal Regulations, title 42, section 483.106(b)(2):
205.19 	(i) the person is admitted to a nursing facility directly from a hospital after receiving 
205.20 	acute inpatient care at the hospital;
205.21 	(ii) the person requires nursing facility services for the same condition for which 
205.22 	care was provided in the hospital; and
205.23 	(iii) the attending physician has certified before the nursing facility admission that 
205.24 	the person is likely to receive less than 30 days of nursing facility services.
205.25 	(b) Persons who are exempt from preadmission screening for purposes of level of 
205.26 	care determination include:
205.27 	(1) persons described in paragraph (a);
205.28 	(2) an individual who has a contractual right to have nursing facility care paid for 
205.29 	indefinitely by the veterans' administration;
205.30 	(3) an individual enrolled in a demonstration project under section 256B.69, 
205.31 	subdivision 8, at the time of application to a nursing facility; and
205.32 	(4) an individual currently being served under the alternative care program or under 
205.33 	a home and community-based services waiver authorized under section 1915(c) of the 
205.34 	federal Social Security Act; and.
206.1 	(5) individuals admitted to a certified nursing facility for a short-term stay, which 
206.2 	is expected to be 14 days or less in duration based upon a physician's certification, and 
206.3 	who have been assessed and approved for nursing facility admission within the previous 
206.4 	six months. This exemption applies only if the consultation team member determines at 
206.5 	the time of the initial assessment of the six-month period that it is appropriate to use the 
206.6 	nursing facility for short-term stays and that there is an adequate plan of care for return to 
206.7 	the home or community-based setting. If a stay exceeds 14 days, the individual must be 
206.8 	referred no later than the first county working day following the 14th resident day for a 
206.9 	screening, which must be completed within five working days of the referral. The payment 
206.10 	limitations in subdivision 7 apply to an individual found at screening to not meet the level 
206.11 	of care criteria for admission to a certified nursing facility.
206.12 	(c) Persons admitted to a Medicaid-certified nursing facility from the community 
206.13 	on an emergency basis as described in paragraph (d) or from an acute care facility on a 
206.14 	nonworking day must be screened the first working day after admission.
206.15 	(d) Emergency admission to a nursing facility prior to screening is permitted when 
206.16 	all of the following conditions are met:
206.17 	(1) a person is admitted from the community to a certified nursing or certified 
206.18 	boarding care facility during county nonworking hours;
206.19 	(2) a physician has determined that delaying admission until preadmission screening 
206.20 	is completed would adversely affect the person's health and safety;
206.21 	(3) there is a recent precipitating event that precludes the client from living safely in 
206.22 	the community, such as sustaining an injury, sudden onset of acute illness, or a caregiver's 
206.23 	inability to continue to provide care;
206.24 	(4) the attending physician has authorized the emergency placement and has 
206.25 	documented the reason that the emergency placement is recommended; and
206.26 	(5) the county is contacted on the first working day following the emergency 
206.27 	admission.
206.28 	Transfer of a patient from an acute care hospital to a nursing facility is not considered 
206.29 	an emergency except for a person who has received hospital services in the following 
206.30 	situations: hospital admission for observation, care in an emergency room without hospital 
206.31 	admission, or following hospital 24-hour bed care.
206.32 	(e) A nursing facility must provide a written notice to persons who satisfy the criteria 
206.33 	in paragraph (a), clause (3),information to all persons admitted regarding the person's 
206.34 	right to request and receive long-term care consultation services as defined in subdivision 
206.35 	1a. The noticeinformation must be provided prior to the person's discharge from the 
206.36 	facility and in a format specified by the commissioner.

207.1 	Sec. 25. Minnesota Statutes 2006, section 256B.0911, subdivision 4c, is amended to 
207.2 	read:
207.3 		Subd. 4c.Screening requirements. (a) A person may be screened for nursing 
207.4 	facility admission by telephone or in a face-to-face screening interview. Consultation team 
207.5 	members shall identify each individual's needs using the following categories:
207.6 	(1) the person needs no face-to-face screening interview to determine the need 
207.7 	for nursing facility level of care based on information obtained from other health care 
207.8 	professionals;
207.9 	(2) the person needs an immediate face-to-face screening interview to determine the 
207.10 	need for nursing facility level of care and complete activities required under subdivision 
207.11 	4a; or
207.12 	(3) the person may be exempt from screening requirements as outlined in subdivision 
207.13 	4b, but will need transitional assistance after admission or in-person follow-along after 
207.14 	a return home.
207.15 	(b) Persons admitted on a nonemergency basis to a Medicaid-certified nursing 
207.16 	facility must be screened prior to admission.
207.17 	(c) The long-term care consultation team shall recommend a case mix classification 
207.18 	for persons admitted to a certified nursing facility when sufficient information is received 
207.19 	to make that classification. The nursing facility is authorized to conduct all case mix 
207.20 	assessments for persons who have been screened prior to admission for whom the county 
207.21 	did not recommend a case mix classification. The nursing facility is authorized to conduct 
207.22 	all case mix assessments for persons admitted to the facility prior to a preadmission 
207.23 	screening. The county retains the responsibility of distributing appropriate case mix 
207.24 	forms to the nursing facility.
207.25 	(d) (c) The county screening or intake activity must include processes to identify 
207.26 	persons who may require transition assistance as described in subdivision 3b.

207.27 	Sec. 26. Minnesota Statutes 2006, section 256B.0911, subdivision 6, is amended to 
207.28 	read:
207.29 		Subd. 6.Payment for long-term care consultation services. (a) The total payment 
207.30 	for each county must be paid monthly by certified nursing facilities in the county. The 
207.31 	monthly amount to be paid by each nursing facility for each fiscal year must be determined 
207.32 	by dividing the county's annual allocation for long-term care consultation services by 12 
207.33 	to determine the monthly payment and allocating the monthly payment to each nursing 
207.34 	facility based on the number of licensed beds in the nursing facility. Payments to counties 
208.1 	in which there is no certified nursing facility must be made by increasing the payment 
208.2 	rate of the two facilities located nearest to the county seat.
208.3 	(b) The commissioner shall include the total annual payment determined under 
208.4 	paragraph (a) for each nursing facility reimbursed under section 256B.431 or 256B.434
208.5 	according to section 256B.431, subdivision 2b, paragraph (g), or 256B.435.
208.6 	(c) In the event of the layaway, delicensure and decertification, or removal from 
208.7 	layaway of 25 percent or more of the beds in a facility, the commissioner may adjust 
208.8 	the per diem payment amount in paragraph (b) and may adjust the monthly payment 
208.9 	amount in paragraph (a). The effective date of an adjustment made under this paragraph 
208.10 	shall be on or after the first day of the month following the effective date of the layaway, 
208.11 	delicensure and decertification, or removal from layaway.
208.12 	(d) Payments for long-term care consultation services are available to the county 
208.13 	or counties to cover staff salaries and expenses to provide the services described in 
208.14 	subdivision 1a. The county shall employ, or contract with other agencies to employ, within 
208.15 	the limits of available funding, sufficient personnel to provide long-term care consultation 
208.16 	services while meeting the state's long-term care outcomes and objectives as defined in 
208.17 	section 256B.0917, subdivision 1. The county shall be accountable for meeting local 
208.18 	objectives as approved by the commissioner in the biennial home and community-based 
208.19 	services quality assurance plan on a form provided by the commissioner.
208.20 	(e) Notwithstanding section 256B.0641, overpayments attributable to payment of the 
208.21 	screening costs under the medical assistance program may not be recovered from a facility.
208.22 	(f) The commissioner of human services shall amend the Minnesota medical 
208.23 	assistance plan to include reimbursement for the local consultation teams.
208.24 	(g) The county may bill, as case management services, assessments, support 
208.25 	planning, and follow-along provided to persons determined to be eligible for case 
208.26 	management under Minnesota health care programs. No individual or family member 
208.27 	shall be charged for an initial assessment or initial support plan development provided 
208.28 	under subdivision 3a or 3b.

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

209.3 	Sec. 28. Minnesota Statutes 2006, section 256B.0911, subdivision 7, is amended to 
209.4 	read:
209.5 		Subd. 7.Reimbursement for certified nursing facilities. (a) Medical assistance 
209.6 	reimbursement for nursing facilities shall be authorized for a medical assistance recipient 
209.7 	only if a preadmission screening has been conducted prior to admission or the county has 
209.8 	authorized an exemption. Medical assistance reimbursement for nursing facilities shall 
209.9 	not be provided for any recipient who the local screener has determined does not meet the 
209.10 	level of care criteria for nursing facility placement or, if indicated, has not had a level II 
209.11 	OBRA evaluation as required under the federal Omnibus Budget Reconciliation Act of 
209.12 	1987 completed unless an admission for a recipient with mental illness is approved by the 
209.13 	local mental health authority or an admission for a recipient with developmental disability 
209.14 	is approved by the state developmental disability authority.
209.15 	(b) The nursing facility must not bill a person who is not a medical assistance 
209.16 	recipient for resident days that preceded the date of completion of screening activities as 
209.17 	required under subdivisions 4a, 4b, and 4c. The nursing facility must include unreimbursed 
209.18 	resident days in the nursing facility resident day totals reported to the commissioner.
209.19 	(c) The commissioner shall make a request to the Centers for Medicare and Medicaid 
209.20 	Services for a waiver allowing team approval of Medicaid payments for certified nursing 
209.21 	facility care. An individual has a choice and makes the final decision between nursing 
209.22 	facility placement and community placement after the screening team's recommendation, 
209.23 	except as provided in subdivision 4a, paragraph (c).

209.24 	Sec. 29. Minnesota Statutes 2006, section 256B.0913, subdivision 4, is amended to 
209.25 	read:
209.26 		Subd. 4.Eligibility for funding for services for nonmedical assistance recipients.
 209.27 	(a) Funding for services under the alternative care program is available to persons who 
209.28 	meet the following criteria:
209.29 	(1) the person has been determined by a community assessment under section 
209.30 	256B.0911 to be a person who would require the level of care provided in a nursing 
209.31 	facility, but for the provision of services under the alternative care program;
209.32 	(2) the person is age 65 or older;
209.33 	(3) the person would be eligible for medical assistance within 135 days of admission 
209.34 	to a nursing facility;
210.1 	(4) the person is not ineligible for the payment of long-term care services by the
210.2 	medical assistance program due to an asset transfer penalty under section 256B.0595 or 
210.3 	equity interest in the home exceeding $500,000 as stated in section 256B.056;
210.4 	(5) the person needs long-term care services that are not funded through other state 
210.5 	or federal funding;
210.6 	(6) the monthly cost of the alternative care services funded by the program for 
210.7 	this person does not exceed 75 percent of the monthly limit described under section 
210.8 	256B.0915, subdivision 3a. This monthly limit does not prohibit the alternative care client 
210.9 	from payment for additional services, but in no case may the cost of additional services 
210.10 	purchased under this section exceed the difference between the client's monthly service 
210.11 	limit defined under section 256B.0915, subdivision 3, and the alternative care program 
210.12 	monthly service limit defined in this paragraph. If medical care-related supplies and 
210.13 	equipment or environmental modifications and adaptations are or will be purchased for 
210.14 	an alternative care services recipient, the costs may be prorated on a monthly basis for 
210.15 	up to 12 consecutive months beginning with the month of purchase. If the monthly cost 
210.16 	of a recipient's other alternative care services exceeds the monthly limit established in 
210.17 	this paragraph, the annual cost of the alternative care services shall be determined. In this 
210.18 	event, the annual cost of alternative care services shall not exceed 12 times the monthly 
210.19 	limit described in this paragraph; and
210.20 	(7) the person is making timely payments of the assessed monthly fee.
210.21 	A person is ineligible if payment of the fee is over 60 days past due, unless the person 
210.22 	agrees to:
210.23 	(i) the appointment of a representative payee;
210.24 	(ii) automatic payment from a financial account;
210.25 	(iii) the establishment of greater family involvement in the financial management of 
210.26 	payments; or
210.27 	(iv) another method acceptable to the county lead agency to ensure prompt fee 
210.28 	payments.
210.29 	The county shall lead agency may extend the client's eligibility as necessary while 
210.30 	making arrangements to facilitate payment of past-due amounts and future premium 
210.31 	payments. Following disenrollment due to nonpayment of a monthly fee, eligibility shall 
210.32 	not be reinstated for a period of 30 days.
210.33 	(b) Alternative care funding under this subdivision is not available for a person 
210.34 	who is a medical assistance recipient or who would be eligible for medical assistance 
210.35 	without a spenddown or waiver obligation. A person whose initial application for medical 
210.36 	assistance and the elderly waiver program is being processed may be served under the 
211.1 	alternative care program for a period up to 60 days. If the individual is found to be eligible 
211.2 	for medical assistance, medical assistance must be billed for services payable under the 
211.3 	federally approved elderly waiver plan and delivered from the date the individual was 
211.4 	found eligible for the federally approved elderly waiver plan. Notwithstanding this 
211.5 	provision, alternative care funds may not be used to pay for any service the cost of which: 
211.6 	(i) is payable by medical assistance; (ii) is used by a recipient to meet a waiver obligation; 
211.7 	or (iii) is used to pay a medical assistance income spenddown for a person who is eligible 
211.8 	to participate in the federally approved elderly waiver program under the special income 
211.9 	standard provision.
211.10 	(c) Alternative care funding is not available for a person who resides in a licensed 
211.11 	nursing home, certified boarding care home, hospital, or intermediate care facility, except 
211.12 	for case management services which are provided in support of the discharge planning 
211.13 	process for a nursing home resident or certified boarding care home resident to assist with 
211.14 	a relocation process to a community-based setting.
211.15 	(d) Alternative care funding is not available for a person whose income is greater 
211.16 	than the maintenance needs allowance under section 256B.0915, subdivision 1d, but equal 
211.17 	to or less than 120 percent of the federal poverty guideline effective July 1 in the fiscal
211.18 	year for which alternative care eligibility is determined, who would be eligible for the 
211.19 	elderly waiver with a waiver obligation.

211.20 	Sec. 30. Minnesota Statutes 2006, section 256B.0913, subdivision 5, is amended to 
211.21 	read:
211.22 		Subd. 5.Services covered under alternative care. Alternative care funding may 
211.23 	be used for payment of costs of:
211.24 	(1) adult day care;
211.25 	(2) home health aide;
211.26 	(3) homemaker services;
211.27 	(4) personal care;
211.28 	(5) case management;
211.29 	(6) respite care;
211.30 	(7) care-related supplies and equipment;
211.31 	(8) meals delivered to the home;
211.32 	(9) nonmedical transportation;
211.33 	(10) nursing services;
211.34 	(11) chore services;
211.35 	(12) companion services;
212.1 	(13) nutrition services;
212.2 	(14) training for direct informal caregivers;
212.3 	(15) telehome care to provide services in their own homes in conjunction with 
212.4 	in-home visits;
212.5 	(16) discretionary services, for which counties may make payment from their 
212.6 	alternative care program allocation or services not otherwise defined in this section 
212.7 	or section 256B.0625, following approval by the commissioner consumer-directed 
212.8 	community services under the alternative care programs which are available statewide and 
212.9 	limited to the average monthly expenditures representative of all alternative care program 
212.10 	participants for the same case mix resident class assigned in the most recent fiscal year for 
212.11 	which complete expenditure data is available;
212.12 	(17) environmental modifications and adaptations; and
212.13 	(18) direct cash payments for which counties may make payment from their 
212.14 	alternative care program allocation to clients for the purpose of purchasing services, 
212.15 	following approval by the commissioner, and subject to the provisions of subdivision 5h, 
212.16 	until approval and implementation of consumer-directed services through the federally 
212.17 	approved elderly waiver plan. Upon implementation, consumer-directed services under 
212.18 	the alternative care program are available statewide and limited to the average monthly 
212.19 	expenditures representative of all alternative care program participants for the same case 
212.20 	mix resident class assigned in the most recent fiscal year for which complete expenditure 
212.21 	data is available discretionary services, for which lead agencies may make payment from 
212.22 	their alternative care program allocation for services not otherwise defined in this section 
212.23 	or section 256B.0625, following approval by the commissioner.
212.24 	Total annual payments for discretionary services and direct cash payments, until 
212.25 	the federally approved consumer-directed service option is implemented statewide, for 
212.26 	all clients within a county may served by a lead agency must not exceed 25 percent of 
212.27 	that county's lead agency's annual alternative care program base allocation. Thereafter, 
212.28 	discretionary services are limited to 25 percent of the county's annual alternative care 
212.29 	program base allocation.

212.30 	Sec. 31. Minnesota Statutes 2006, section 256B.0913, subdivision 5a, is amended to 
212.31 	read:
212.32 		Subd. 5a.Services; service definitions; service standards. (a) Unless specified in 
212.33 	statute, the services, service definitions, and standards for alternative care services shall 
212.34 	be the same as the services, service definitions, and standards specified in the federally 
212.35 	approved elderly waiver plan, except foralternative care does not cover transitional 
213.1 	support services, assisted living services, adult foster care services, and residential care 
213.2 	services and benefits defined under section 256B.0625 that meet primary and acute 
213.3 	health care needs.
213.4 	(b) The county lead agency must ensure that the funds are not used to supplant 
213.5 	or supplement services available through other public assistance or services programs., 
213.6 	including supplementation of client co-pays, deductibles, premiums, or other cost-sharing 
213.7 	arrangements for health-related benefits and services or entitlement programs and services 
213.8 	that are available to the person, but in which they have elected not to enroll. For a provider 
213.9 	of supplies and equipment when the monthly cost of the supplies and equipment is less 
213.10 	than $250, persons or agencies must be employed by or under a contract with the county
213.11 	lead agency or the public health nursing agency of the local board of health in order to 
213.12 	receive funding under the alternative care program. Supplies and equipment may be 
213.13 	purchased from a vendor not certified to participate in the Medicaid program if the cost for 
213.14 	the item is less than that of a Medicaid vendor.
213.15 	(c) Personal care services must meet the service standards defined in the federally 
213.16 	approved elderly waiver plan, except that a county lead agency may contract with a 
213.17 	client's relative who meets the relative hardship waiver requirements or a relative who 
213.18 	meets the criteria and is also the responsible party under an individual service plan that 
213.19 	ensures the client's health and safety and supervision of the personal care services by a 
213.20 	qualified professional as defined in section 256B.0625, subdivision 19c. Relative hardship 
213.21 	is established by the county lead agency when the client's care causes a relative caregiver 
213.22 	to do any of the following: resign from a paying job, reduce work hours resulting in lost 
213.23 	wages, obtain a leave of absence resulting in lost wages, incur substantial client-related 
213.24 	expenses, provide services to address authorized, unstaffed direct care time, or meet 
213.25 	special needs of the client unmet in the formal service plan.

213.26 	Sec. 32. Minnesota Statutes 2006, section 256B.0913, subdivision 8, is amended to 
213.27 	read:
213.28 		Subd. 8.Requirements for individual care plan. (a) The case manager shall 
213.29 	implement the plan of care for each alternative care client and ensure that a client's 
213.30 	service needs and eligibility are reassessed at least every 12 months. The plan shall 
213.31 	include any services prescribed by the individual's attending physician as necessary to 
213.32 	allow the individual to remain in a community setting. In developing the individual's care 
213.33 	plan, the case manager should include the use of volunteers from families and neighbors, 
213.34 	religious organizations, social clubs, and civic and service organizations to support the 
213.35 	formal home care services. The county lead agency shall be held harmless for damages or 
214.1 	injuries sustained through the use of volunteers under this subdivision including workers' 
214.2 	compensation liability. The county of service case manager shall provide documentation 
214.3 	in each individual's plan of care and, if requested, to the commissioner that the most 
214.4 	cost-effective alternatives available have been offered to the individual and that the 
214.5 	individual was free to choose among available qualified providers, both public and private, 
214.6 	including qualified case management or service coordination providers other than those 
214.7 	employed by any county; however, the county or tribe maintains responsibility for prior 
214.8 	authorizing services in accordance with statutory and administrative requirements. The 
214.9 	case manager must give the individual a ten-day written notice of any denial, termination, 
214.10 	or reduction of alternative care services.
214.11 	(b) The county of service or tribe must provide access to and arrange for case 
214.12 	management services, including assuring implementation of the plan. "County of service" 
214.13 	has the meaning given it in Minnesota Rules, part 9505.0015, subpart 11. The county of 
214.14 	service must notify the county of financial responsibility of the approved care plan and 
214.15 	the amount of encumbered funds.

214.16 	Sec. 33. Minnesota Statutes 2006, section 256B.0913, subdivision 9, is amended to 
214.17 	read:
214.18 		Subd. 9.Contracting provisions for providers. Alternative care funds paid to 
214.19 	service providers are subject to audit by the commissioner for fiscal and utilization control.
214.20 	The lead agency must select providers for contracts or agreements using the 
214.21 	following criteria and other criteria established by the county lead agency:
214.22 	(1) the need for the particular services offered by the provider;
214.23 	(2) the population to be served, including the number of clients, the length of time 
214.24 	services will be provided, and the medical condition of clients;
214.25 	(3) the geographic area to be served;
214.26 	(4) quality assurance methods, including appropriate licensure, certification, or 
214.27 	standards, and supervision of employees when needed;
214.28 	(5) rates for each service and unit of service exclusive of county lead agency
214.29 	administrative costs;
214.30 	(6) evaluation of services previously delivered by the provider; and
214.31 	(7) contract or agreement conditions, including billing requirements, cancellation, 
214.32 	and indemnification.
214.33 	The county lead agency must evaluate its own agency services under the criteria 
214.34 	established for other providers.

215.1 	Sec. 34. Minnesota Statutes 2006, section 256B.0913, subdivision 10, is amended to 
215.2 	read:
215.3 		Subd. 10.Allocation formula. (a) The alternative care appropriation for fiscal 
215.4 	years 1992 and beyond shall cover only alternative care eligible clients. By July 1 15 of 
215.5 	each year, the commissioner shall allocate to county agencies the state funds available for 
215.6 	alternative care for persons eligible under subdivision 2.
215.7 	(b) The adjusted base for each county lead agency is the county's lead agency's
215.8 	current fiscal year base allocation plus any targeted funds approved during the current 
215.9 	fiscal year. Calculations for paragraphs (c) and (d) are to be made as follows: for each 
215.10 	county lead agency, the determination of alternative care program expenditures shall be 
215.11 	based on payments for services rendered from April 1 through March 31 in the base year, 
215.12 	to the extent that claims have been submitted and paid by June 1 of that year.
215.13 	(c) If the alternative care program expenditures as defined in paragraph (b) are 95 
215.14 	percent or more of the county's lead agency's adjusted base allocation, the allocation for 
215.15 	the next fiscal year is 100 percent of the adjusted base, plus inflation to the extent that 
215.16 	inflation is included in the state budget.
215.17 	(d) If the alternative care program expenditures as defined in paragraph (b) are less 
215.18 	than 95 percent of the county's lead agency's adjusted base allocation, the allocation 
215.19 	for the next fiscal year is the adjusted base allocation less the amount of unspent funds 
215.20 	below the 95 percent level.
215.21 	(e) If the annual legislative appropriation for the alternative care program is 
215.22 	inadequate to fund the combined county lead agency allocations for a biennium, the 
215.23 	commissioner shall distribute to each county lead agency the entire annual appropriation 
215.24 	as that county's lead agency's percentage of the computed base as calculated in paragraphs 
215.25 	(c) and (d).
215.26 	(f) On agreement between the commissioner and the lead agency, the commissioner 
215.27 	may have discretion to reallocate alternative care base allocations distributed to lead 
215.28 	agencies in which the base amount exceeds program expenditures.

215.29 	Sec. 35. Minnesota Statutes 2006, section 256B.0913, subdivision 11, is amended to 
215.30 	read:
215.31 		Subd. 11.Targeted funding. (a) The purpose of targeted funding is to make 
215.32 	additional money available to counties lead agencies with the greatest need. Targeted 
215.33 	funds are not intended to be distributed equitably among all counties lead agencies, but 
215.34 	rather, allocated to those with long-term care strategies that meet state goals.
216.1 	(b) The funds available for targeted funding shall be the total appropriation for each 
216.2 	fiscal year minus county lead agency allocations determined under subdivision 10 as 
216.3 	adjusted for any inflation increases provided in appropriations for the biennium.
216.4 	(c) The commissioner shall allocate targeted funds to counties lead agencies that 
216.5 	demonstrate to the satisfaction of the commissioner that they have developed feasible 
216.6 	plans to increase alternative care spending. In making targeted funding allocations, the 
216.7 	commissioner shall use the following priorities:
216.8 	(1) counties lead agencies that received a lower allocation in fiscal year 1991 than in 
216.9 	fiscal year 1990. Counties remain in this priority until they have been restored to their 
216.10 	fiscal year 1990 level plus inflation;
216.11 	(2) counties lead agencies that sustain a base allocation reduction for failure to spend 
216.12 	95 percent of the allocation if they demonstrate that the base reduction should be restored;
216.13 	(3) counties lead agencies that propose projects to divert community residents from 
216.14 	nursing home placement or convert nursing home residents to community living; and
216.15 	(4) counties lead agencies that can otherwise justify program growth by 
216.16 	demonstrating the existence of waiting lists, demographically justified needs, or other 
216.17 	unmet needs.
216.18 	(d) Counties Lead agencies that would receive targeted funds according to 
216.19 	paragraph (c) must demonstrate to the commissioner's satisfaction that the funds 
216.20 	would be appropriately spent by showing how the funds would be used to further the 
216.21 	state's alternative care goals as described in subdivision 1, and that the county has the 
216.22 	administrative and service delivery capability to use them.
216.23 	(e) The commissioner shall request applications make applications available for 
216.24 	targeted funds by November 1 of each year. The counties lead agencies selected for 
216.25 	targeted funds shall be notified of the amount of their additional funding. Targeted funds 
216.26 	allocated to a county lead agency in one year shall be treated as part of the county's lead 
216.27 	agency's base allocation for that year in determining allocations for subsequent years. No 
216.28 	reallocations between counties lead agencies shall be made.

216.29 	Sec. 36. Minnesota Statutes 2006, section 256B.0913, subdivision 12, is amended to 
216.30 	read:
216.31 		Subd. 12.Client fees. (a) A fee is required for all alternative care eligible clients 
216.32 	to help pay for the cost of participating in the program. The amount of the fee for the 
216.33 	alternative care client shall be determined as follows:
216.34 	(1) when the alternative care client's income less recurring and predictable medical 
216.35 	expenses is less than 100 percent of the federal poverty guideline effective on July 1 of 
217.1 	the state fiscal year in which the fee is being computed, and total assets are less than 
217.2 	$10,000, the fee is zero;
217.3 	(2) when the alternative care client's income less recurring and predictable medical 
217.4 	expenses is equal to or greater than 100 percent but less than 150 percent of the federal 
217.5 	poverty guideline effective on July 1 of the state fiscal year in which the fee is being 
217.6 	computed, and total assets are less than $10,000, the fee is five percent of the cost of 
217.7 	alternative care services;
217.8 	(3) when the alternative care client's income less recurring and predictable medical 
217.9 	expenses is equal to or greater than 150 percent but less than 200 percent of the federal 
217.10 	poverty guidelines effective on July 1 of the state fiscal year in which the fee is being 
217.11 	computed and assets are less than $10,000, the fee is 15 percent of the cost of alternative 
217.12 	care services;
217.13 	(4) when the alternative care client's income less recurring and predictable medical 
217.14 	expenses is equal to or greater than 200 percent of the federal poverty guidelines effective 
217.15 	on July 1 of the state fiscal year in which the fee is being computed and assets are less than 
217.16 	$10,000, the fee is 30 percent of the cost of alternative care services; and
217.17 	(5) when the alternative care client's assets are equal to or greater than $10,000, the 
217.18 	fee is 30 percent of the cost of alternative care services.
217.19 	For married persons, total assets are defined as the total marital assets less the 
217.20 	estimated community spouse asset allowance, under section 256B.059, if applicable. For 
217.21 	married persons, total income is defined as the client's income less the monthly spousal 
217.22 	allotment, under section 256B.058. 
217.23 	All alternative care services shall be included in the estimated costs for the purpose 
217.24 	of determining the fee.
217.25 	Fees are due and payable each month alternative care services are received unless the 
217.26 	actual cost of the services is less than the fee, in which case the fee is the lesser amount.
217.27 	(b) The fee shall be waived by the commissioner when:
217.28 	(1) a person who is residing in a nursing facility is receiving case management only;
217.29 	(2) a married couple is requesting an asset assessment under the spousal 
217.30 	impoverishment provisions;
217.31 	(3) a person is found eligible for alternative care, but is not yet receiving alternative 
217.32 	care services including case management services; or
217.33 	(4) a person has chosen to participate in a consumer-directed service plan for which 
217.34 	the cost is no greater than the total cost of the person's alternative care service plan less 
217.35 	the monthly fee amount that would otherwise be assessed.
218.1 	(c) The county agency must record in the state's receivable system the client's 
218.2 	assessed fee amount or the reason the fee has been waived. The commissioner will bill 
218.3 	and collect the fee from the client. Money collected must be deposited in the general fund 
218.4 	and is appropriated to the commissioner for the alternative care program. The client must 
218.5 	supply the county lead agency with the client's Social Security number at the time of 
218.6 	application. The county lead agency shall supply the commissioner with the client's Social 
218.7 	Security number and other information the commissioner requires to collect the fee from 
218.8 	the client. The commissioner shall collect unpaid fees using the Revenue Recapture Act in 
218.9 	chapter 270A and other methods available to the commissioner. The commissioner may 
218.10 	require counties lead agencies to inform clients of the collection procedures that may be 
218.11 	used by the state if a fee is not paid. This paragraph does not apply to alternative care 
218.12 	pilot projects authorized in Laws 1993, First Special Session chapter 1, article 5, section 
218.13 	133, if a county operating under the pilot project reports the following dollar amounts 
218.14 	to the commissioner quarterly:
218.15 	(1) total fees billed to clients;
218.16 	(2) total collections of fees billed; and
218.17 	(3) balance of fees owed by clients.
218.18 	If a county lead agency does not adhere to these reporting requirements, the commissioner 
218.19 	may terminate the billing, collecting, and remitting portions of the pilot project and require 
218.20 	the county lead agency involved to operate under the procedures set forth in this paragraph.

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

218.28 	Sec. 38. Minnesota Statutes 2006, section 256B.0913, subdivision 14, is amended to 
218.29 	read:
218.30 		Subd. 14.Provider requirements, payment, and rate adjustments. (a) Unless 
218.31 	otherwise specified in statute, providers must be enrolled as Minnesota health care 
218.32 	program providers and abide by the requirements for provider participation according to 
218.33 	Minnesota Rules, part 9505.0195.
219.1 	(b) Payment for provided alternative care services as approved by the client's 
219.2 	case manager shall occur through the invoice processing procedures of the department's 
219.3 	Medicaid Management Information System (MMIS). To receive payment, the county lead 
219.4 	agency or vendor must submit invoices within 12 months following the date of service. 
219.5 	The county lead agency and its vendors under contract shall not be reimbursed for services 
219.6 	which exceed the county allocation.
219.7 	(c) The county lead agency shall negotiate individual rates with vendors and may 
219.8 	authorize service payment for actual costs up to the county's current approved rate. 
219.9 	Notwithstanding any other rule or statutory provision to the contrary, the commissioner 
219.10 	shall not be authorized to increase rates by an annual inflation factor, unless so authorized 
219.11 	by the legislature. To improve access to community services and eliminate payment 
219.12 	disparities between the alternative care program and the elderly waiver program, the 
219.13 	commissioner shall establish statewide maximum service rate limits and eliminate 
219.14 	county-specific service rate limits.
219.15 	(1) Effective July 1, 2001, for service rate limits, except those in subdivision 5, 
219.16 	paragraphs (d) and (i), the rate limit for each service shall be the greater of the alternative 
219.17 	care statewide maximum rate or the elderly waiver statewide maximum rate.
219.18 	(2) Counties Lead agencies may negotiate individual service rates with vendors for 
219.19 	actual costs up to the statewide maximum service rate limit.

219.20 	Sec. 39. Minnesota Statutes 2006, section 256B.0919, subdivision 3, is amended to 
219.21 	read:
219.22 		Subd. 3.County certification of persons providing adult foster care to related 
219.23 	persons. A person exempt from licensure under section 245A.03, subdivision 2, who 
219.24 	provides adult foster care to a related individual age 65 and older, and who meets the 
219.25 	requirements in Minnesota Rules, parts 9555.5105 to 9555.6265, may be certified by the 
219.26 	county to provide adult foster care. A person certified by the county to provide adult foster 
219.27 	care may be reimbursed for services provided and eligible for funding under sections 
219.28 	256B.0913 and section256B.0915, if the relative would suffer a financial hardship as 
219.29 	a result of providing care. For purposes of this subdivision, financial hardship refers 
219.30 	to a situation in which a relative incurs a substantial reduction in income as a result of 
219.31 	resigning from a full-time job or taking a leave of absence without pay from a full-time 
219.32 	job to care for the client. 

219.33 	Sec. 40. Minnesota Statutes 2006, section 256B.27, subdivision 2a, is amended to read:
220.1 		Subd. 2a.On-siteCost and statistical data audits. Each year The commissioner 
220.2 	shall provide for the on-sitean audit of the cost reportsand statistical data of nursing homes
220.3 	facilities participating as vendors of medical assistance. The commissioner shall select for 
220.4 	audit at least 15 percent of thesethe nursing homesfacility's data reported at random or 
220.5 	using factors including, but not limited to: data reported to the public as criteria for rating 
220.6 	nursing facilities; data used to set limits for other medical assistance programs or vendors 
220.7 	of services to nursing facilities; change in ownership; frequent changes in administration 
220.8 	in excess of normal turnover rates; complaints to the commissioner of health about care, 
220.9 	safety, or rights; where previous inspections or reinspections under section 144A.10 have 
220.10 	resulted in correction orders related to care, safety, or rights; or where persons involved in 
220.11 	ownership or administration of the facility have been indicted for alleged criminal activity. 
220.12 	The commissioner shall meet the 15 percent requirement by either conducting an 
220.13 	audit focused on an individual nursing facility, a group of facilities, or targeting specific 
220.14 	data categories in multiple nursing facilities. These audits may be conducted on site 
220.15 	at the nursing facility, at office space used by a nursing facility or a nursing facility's 
220.16 	parent organization, or at the commissioner's office. Data being audited may be collected 
220.17 	electronically, in person, or by any other means the commissioner finds acceptable.

220.18 	Sec. 41. Minnesota Statutes 2006, section 256B.431, subdivision 1, is amended to read:
220.19 		Subdivision 1.In general. The commissioner shall determine prospective 
220.20 	payment rates for resident care costs. For rates established on or after July 1, 1985, the 
220.21 	commissioner shall develop procedures for determining operating cost payment rates that 
220.22 	take into account the mix of resident needs, geographic location, and other factors as 
220.23 	determined by the commissioner. The commissioner shall consider whether the fact that a 
220.24 	facility is attached to a hospital or has an average length of stay of 180 days or less should 
220.25 	be taken into account in determining rates. The commissioner shall consider the use of the 
220.26 	standard metropolitan statistical areas when developing groups by geographic location. 
220.27 	The commissioner shall provide notice to each nursing facility on or before May 1 August 
220.28 	15 of the rates effective for the following rate year except that if legislation is pending on 
220.29 	May 1 August 15 that may affect rates for nursing facilities, the commissioner shall set the 
220.30 	rates after the legislation is enacted and provide notice to each facility as soon as possible.
220.31 	Compensation for top management personnel shall continue to be categorized as a 
220.32 	general and administrative cost and is subject to any limits imposed on that cost category.

220.33 	Sec. 42. Minnesota Statutes 2006, section 256B.431, subdivision 3f, is amended to 
220.34 	read:
221.1 		Subd. 3f.Property costs after July 1, 1988. (a) Investment per bed limit. For the 
221.2 	rate year beginning July 1, 1988, the replacement-cost-new per bed limit must be $32,571 
221.3 	per licensed bed in multiple bedrooms and $48,857 per licensed bed in a single bedroom. 
221.4 	For the rate year beginning July 1, 1989, the replacement-cost-new per bed limit for a 
221.5 	single bedroom must be $49,907 adjusted according to Minnesota Rules, part 9549.0060, 
221.6 	subpart 4, item A, subitem (1). Beginning January 1, 1990, the replacement-cost-new per 
221.7 	bed limits must be adjusted annually as specified in Minnesota Rules, part 9549.0060, 
221.8 	subpart 4, item A, subitem (1). Beginning January 1, 1991, the replacement-cost-new per 
221.9 	bed limits will be adjusted annually as specified in Minnesota Rules, part 9549.0060, 
221.10 	subpart 4, item A, subitem (1), except that the index utilized will be the Bureau of the 
221.11 	Census: Composite fixed-weighted price index as published in the C30 Report, Value 
221.12 	of New Construction Put in Place Economic Analysis: Price Indexes for Private Fixed 
221.13 	Investments in Structures; Special Care. 
221.14 	(b)  Rental factor. For the rate year beginning July 1, 1988, the commissioner shall 
221.15 	increase the rental factor as established in Minnesota Rules, part 9549.0060, subpart 8, 
221.16 	item A, by 6.2 percent rounded to the nearest 100th percent for the purpose of reimbursing 
221.17 	nursing facilities for soft costs and entrepreneurial profits not included in the cost valuation 
221.18 	services used by the state's contracted appraisers. For rate years beginning on or after July 
221.19 	1, 1989, the rental factor is the amount determined under this paragraph for the rate year 
221.20 	beginning July 1, 1988. 
221.21 	(c)  Occupancy factor. For rate years beginning on or after July 1, 1988, in order 
221.22 	to determine property-related payment rates under Minnesota Rules, part 9549.0060, 
221.23 	for all nursing facilities except those whose average length of stay in a skilled level of 
221.24 	care within a nursing facility is 180 days or less, the commissioner shall use 95 percent 
221.25 	of capacity days. For a nursing facility whose average length of stay in a skilled level of 
221.26 	care within a nursing facility is 180 days or less, the commissioner shall use the greater of 
221.27 	resident days or 80 percent of capacity days but in no event shall the divisor exceed 95 
221.28 	percent of capacity days. 
221.29 	(d)  Equipment allowance. For rate years beginning on July 1, 1988, and July 1, 
221.30 	1989, the commissioner shall add ten cents per resident per day to each nursing facility's 
221.31 	property-related payment rate. The ten-cent property-related payment rate increase is not 
221.32 	cumulative from rate year to rate year. For the rate year beginning July 1, 1990, the 
221.33 	commissioner shall increase each nursing facility's equipment allowance as established 
221.34 	in Minnesota Rules, part 9549.0060, subpart 10, by ten cents per resident per day. For 
221.35 	rate years beginning on or after July 1, 1991, the adjusted equipment allowance must be 
221.36 	adjusted annually for inflation as in Minnesota Rules, part 9549.0060, subpart 10, item E. 
222.1 	For the rate period beginning October 1, 1992, the equipment allowance for each nursing 
222.2 	facility shall be increased by 28 percent. For rate years beginning after June 30, 1993, the 
222.3 	allowance must be adjusted annually for inflation. 
222.4 	(e)  Post chapter 199 related-organization debts and interest expense. For rate 
222.5 	years beginning on or after July 1, 1990, Minnesota Rules, part 9549.0060, subpart 5, item 
222.6 	E, shall not apply to outstanding related organization debt incurred prior to May 23, 1983, 
222.7 	provided that the debt was an allowable debt under Minnesota Rules, parts 9510.0010 
222.8 	to 9510.0480, the debt is subject to repayment through annual principal payments, and 
222.9 	the nursing facility demonstrates to the commissioner's satisfaction that the interest rate 
222.10 	on the debt was less than market interest rates for similar arm's-length transactions at 
222.11 	the time the debt was incurred. If the debt was incurred due to a sale between family 
222.12 	members, the nursing facility must also demonstrate that the seller no longer participates 
222.13 	in the management or operation of the nursing facility. Debts meeting the conditions of 
222.14 	this paragraph are subject to all other provisions of Minnesota Rules, parts 9549.0010 
222.15 	to 9549.0080. 
222.16 	(f)  Building capital allowance for nursing facilities with operating leases. For 
222.17 	rate years beginning on or after July 1, 1990, a nursing facility with operating lease costs 
222.18 	incurred for the nursing facility's buildings shall receive its building capital allowance 
222.19 	computed in accordance with Minnesota Rules, part 9549.0060, subpart 8. If an operating 
222.20 	lease provides that the lessee's rent is adjusted to recognize improvements made by the 
222.21 	lessor and related debt, the costs for capital improvements and related debt shall be allowed 
222.22 	in the computation of the lessee's building capital allowance, provided that reimbursement 
222.23 	for these costs under an operating lease shall not exceed the rate otherwise paid. 

222.24 	Sec. 43. Minnesota Statutes 2006, section 256B.431, subdivision 17e, is amended to 
222.25 	read:
222.26 		Subd. 17e.Replacement-costs-new per bed limit effective JulyOctober 1, 2001
222.27 	2007. Notwithstanding Minnesota Rules, part 9549.0060, subpart 11, item C, subitem 
222.28 	(2), for a total replacement, as defined in paragraph (f) subdivision 17d, authorized 
222.29 	under section   144A.071 or   144A.073 after July 1, 1999, or any building project that is a 
222.30 	relocation, renovation, upgrading, or conversion completed on or after July 1, 2001, or 
222.31 	any building project eligible for reimbursement under section 256B.434, subdivision 4f, 
222.32 	the replacement-costs-new per bed limit shall be $74,280 per licensed bed in multiple-bed 
222.33 	rooms, $92,850 per licensed bed in semiprivate rooms with a fixed partition separating 
222.34 	the resident beds, and $111,420 per licensed bed in single rooms. Minnesota Rules, part 
223.1 	9549.0060, subpart 11, item C, subitem (2), does not apply. These amounts must be 
223.2 	adjusted annually as specified in subdivision 3f, paragraph (a), beginning January 1, 2000. 

223.3 	Sec. 44. Minnesota Statutes 2006, section 256B.431, subdivision 41, is amended to 
223.4 	read:
223.5 		Subd. 41.Rate increases for October 1, 2005, and October 1, 2006. (a) For the 
223.6 	rate period beginning October 1, 2005, the commissioner shall make available to each 
223.7 	nursing facility reimbursed under this section or section 256B.434 an adjustment equal to 
223.8 	2.2553 percent of the total operating payment rate, and for the rate year beginning October 
223.9 	1, 2006, the commissioner shall make available to each nursing facility reimbursed 
223.10 	under this section or section 256B.434 an adjustment equal to 1.2553 percent of the total 
223.11 	operating payment rate.
223.12 	(b) 75 percent of the money resulting from the rate adjustment under paragraph (a) 
223.13 	must be used to increase wages and benefits and pay associated costs for all employees, 
223.14 	except management fees, the administrator, and central office staff. Except as provided 
223.15 	in paragraph (c), 75 percent of the money received by a facility as a result of the rate 
223.16 	adjustment provided in paragraph (a) must be used only for wage, benefit, and staff 
223.17 	increases implemented on or after the effective date of the rate increase each year, and 
223.18 	must not be used for increases implemented prior to that date.
223.19 	(c) With respect only to the October 1, 2005, rate increase, a nursing facility that 
223.20 	incurred costs for salary and employee benefit increases first provided after July 1, 2003, 
223.21 	may count those costs towards the amount required to be spent on salaries and benefits 
223.22 	under paragraph (b). These costs must be reported to the commissioner in the form and 
223.23 	manner specified by the commissioner.
223.24 	(d) Nursing facilities may apply for the portion of the rate adjustment under 
223.25 	paragraph (a) for employee wages and benefits and associated costs. The application 
223.26 	must be made to the commissioner and contain a plan by which the nursing facility 
223.27 	will distribute the funds according to paragraph (b). For nursing facilities in which the 
223.28 	employees are represented by an exclusive bargaining representative, an agreement 
223.29 	negotiated and agreed to by the employer and the exclusive bargaining representative 
223.30 	constitutes the plan. A negotiated agreement may constitute the plan only if the agreement 
223.31 	is finalized after the date of enactment of all increases for the rate year and signed by both 
223.32 	parties prior to submission to the commissioner. The commissioner shall review the 
223.33 	plan to ensure that the rate adjustments are used as provided in paragraph (b). To be 
223.34 	eligible, a facility must submit its distribution plan by March 31, 2006, and March 31, 
223.35 	2007, respectively. The commissioner may approve distribution plans on or before June 
224.1 	30, 2006, and June 30, 2007, respectively. The commissioner may waive the deadlines in 
224.2 	this paragraph under extraordinary circumstances, either retroactively or prospectively, to 
224.3 	be determined at the sole discretion of the commissioner. If a facility's distribution plan is 
224.4 	effective after the first day of the applicable rate period that the funds are available, the 
224.5 	rate adjustments are effective the same date as the facility's plan.
224.6 	(e) A copy of the approved distribution plan must be made available to all employees 
224.7 	by giving each employee a copy or by posting a copy in an area of the nursing facility 
224.8 	to which all employees have access. If an employee does not receive the wage and 
224.9 	benefit adjustment described in the facility's approved plan and is unable to resolve the 
224.10 	problem with the facility's management or through the employee's union representative, 
224.11 	the employee may contact the commissioner at an address or telephone number provided 
224.12 	by the commissioner and included in the approved plan.

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

224.15 	Sec. 45. Minnesota Statutes 2006, section 256B.49, subdivision 11, is amended to read:
224.16 		Subd. 11.Authority. (a) The commissioner is authorized to apply for home and 
224.17 	community-based service waivers, as authorized under section 1915(c) of the Social 
224.18 	Security Act to serve persons under the age of 65 who are determined to require the level 
224.19 	of care provided in a nursing home and persons who require the level of care provided in a 
224.20 	hospital. The commissioner shall apply for the home and community-based waivers in 
224.21 	order to:
224.22 	(i) promote the support of persons with disabilities in the most integrated settings;
224.23 	(ii) expand the availability of services for persons who are eligible for medical 
224.24 	assistance;
224.25 	(iii) promote cost-effective options to institutional care; and
224.26 	(iv) obtain federal financial participation.
224.27 	(b) The provision of waivered services to medical assistance recipients with 
224.28 	disabilities shall comply with the requirements outlined in the federally approved 
224.29 	applications for home and community-based services and subsequent amendments, 
224.30 	including provision of services according to a service plan designed to meet the needs of 
224.31 	the individual. For purposes of this section, the approved home and community-based 
224.32 	application is considered the necessary federal requirement.
224.33 	(c) The commissioner shall provide interested persons serving on agency advisory 
224.34 	committees and, task forces, the Centers for Independent Living, and others upon who
224.35 	request, with to be on a list to receive, notice of, and an opportunity to comment on, 
225.1 	at least 30 days before any effective dates, (1) any substantive changes to the state's 
225.2 	disability services program manual, or (2) changes or amendments to the federally 
225.3 	approved applications for home and community-based waivers, prior to their submission 
225.4 	to the federal Centers for Medicare and Medicaid Services.
225.5 	(d) The commissioner shall seek approval, as authorized under section 1915(c) of 
225.6 	the Social Security Act, to allow medical assistance eligibility under this section for 
225.7 	children under age 21 without deeming of parental income or assets.
225.8 	(e) The commissioner shall seek approval, as authorized under section 1915(c) of 
225.9 	the Social Act, to allow medical assistance eligibility under this section for individuals 
225.10 	under age 65 without deeming the spouse's income or assets.

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

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

225.20 	Sec. 47. LICENSURE; SERVICES FOR YOUTH WITH DISABILITIES.
 225.21 	(a) Notwithstanding the requirements of Minnesota Statutes, chapter 245A, upon 
225.22 	the recommendation of a county agency, the commissioner of human services shall 
225.23 	grant a license with any necessary variances to a nonresidential program for youth 
225.24 	that provides services to youth with disabilities under age 21 during nonschool hours 
225.25 	established to ensure health and safety, prevent out-of-home placement, and increase 
225.26 	community inclusion of youth with disabilities. The nonresidential youth program is 
225.27 	subject to the conditions of any variances granted and to consumer rights standards under 
225.28 	Minnesota Statutes, section 245B.04; consumer protection standards under Minnesota 
225.29 	Statutes, section 245B.05; service standards under Minnesota Statutes, section 245B.06; 
225.30 	management standards under Minnesota Statutes, section 245B.07; and fire marshal 
225.31 	inspections under Minnesota Statutes, section 245A.151, until the commissioner develops 
225.32 	other licensure requirements for this type of program.
225.33 	(b) By February 1, 2008, the commissioner shall recommend amendments to 
225.34 	licensure requirements in Minnesota Statutes, chapter 245A, to allow licensure of 
226.1 	appropriate services for school-age youth with disabilities under age 21 who need 
226.2 	supervision and services to develop skills necessary to maintain personal safety and 
226.3 	increase their independence, productivity, and participation in their communities during 
226.4 	nonschool hours. As part of developing the recommendations, the commissioner shall 
226.5 	survey county agencies to determine how the needs of youth with disabilities under age 21 
226.6 	who require supervision and support services are being met and the funding sources used. 
226.7 	The recommendations must be provided to the house and senate chairs of the committees 
226.8 	with jurisdiction over licensing of programs for youth with disabilities.

226.9 	ARTICLE 7
226.10 	CONTINUING CARE

226.11 	Section 1. Minnesota Statutes 2006, section 47.58, subdivision 8, is amended to read:
226.12 		Subd. 8.Counseling; requirement; penalty. A lender, mortgage banking company, 
226.13 	or other mortgage lender not related to the mortgagor must keep a certificate on file 
226.14 	documenting that the borrower, prior to entering into the reverse mortgage loan, received 
226.15 	counseling as defined in this subdivision from an organization that meets the requirements 
226.16 	of section 462A.209 and is a housing counseling agency approved by the Department of 
226.17 	Housing and Urban Development. The certificate must be signed by the mortgagor and 
226.18 	the counselor and include the date of the counseling, the name, address, and telephone 
226.19 	number of both the mortgagor and the organization providing counseling. A failure by 
226.20 	the lender to comply with this subdivision results in a $1,000 civil penalty payable to 
226.21 	the mortgagor. For the purposes of this subdivision, "counseling" means the following 
226.22 	services are provided to the borrower: 
226.23 	(1) a review of the advantages and disadvantages of reverse mortgage programs;
226.24 	(2) an explanation of how the reverse mortgage affects the borrower's estate and 
226.25 	public benefits;
226.26 	(3) an explanation of the lending process;
226.27 	(4) a discussion of the borrower's supplemental income needs; and
226.28 	(5) an explanation of the provisions of sections 256B.0913, subdivision 17, and 
226.29 	462A.05, subdivision 42; and
226.30 	(6) an opportunity to ask questions of the counselor.

226.31 	Sec. 2. Minnesota Statutes 2006, section 144A.073, subdivision 4, is amended to read:
226.32 		Subd. 4.Criteria for review. The following criteria shall be used in a consistent 
226.33 	manner to compare, evaluate, and rank all proposals submitted. Except for the criteria 
227.1 	specified in clause (3), the application of criteria listed under this subdivision shall not 
227.2 	reflect any distinction based on the geographic location of the proposed project:
227.3 	(1) the extent to which the proposal furthers state long-term care goals, including 
227.4 	the goal of enhancing the availability and use of alternative care services and the goal of 
227.5 	reducing the number of long-term care resident rooms with more than two beds;
227.6 	(2) the proposal's long-term effects on state costs including the cost estimate of the 
227.7 	project according to section 144A.071, subdivision 5a; 
227.8 	(3) the extent to which the proposal promotes equitable access to long-term care 
227.9 	services in nursing homes through redistribution of the nursing home bed supply, as 
227.10 	measured by the number of beds relative to the population 85 or older, projected to the 
227.11 	year 2000 by the state demographer, and according to items (i) to (iv):
227.12 	(i) reduce beds in counties where the supply is high, relative to the statewide mean, 
227.13 	and increase beds in counties where the supply is low, relative to the statewide mean;
227.14 	(ii) adjust the bed supply so as to create the greatest benefits in improving the 
227.15 	distribution of beds;
227.16 	(iii) adjust the existing bed supply in counties so that the bed supply in a county 
227.17 	moves toward the statewide mean; and
227.18 	(iv) adjust the existing bed supply so that the distribution of beds as projected for the 
227.19 	year 2020 would be consistent with projected need, based on the methodology outlined in 
227.20 	the Interagency Long-Term Care Committee's nursing home bed distribution study;
227.21 	(4) the extent to which the project improves conditions that affect the health or 
227.22 	safety of residents, such as narrow corridors, narrow door frames, unenclosed fire exits, 
227.23 	and wood frame construction, and similar provisions contained in fire and life safety 
227.24 	codes and licensure and certification rules;
227.25 	(5) the extent to which the project improves conditions that affect the comfort or 
227.26 	quality of life of residents in a facility or the ability of the facility to provide efficient 
227.27 	care, such as a relatively high number of residents in a room; inadequate lighting or 
227.28 	ventilation; poor access to bathing or toilet facilities; a lack of available ancillary space for 
227.29 	dining rooms, day rooms, or rooms used for other activities; problems relating to heating, 
227.30 	cooling, or energy efficiency; inefficient location of nursing stations; narrow corridors; or 
227.31 	other provisions contained in the licensure and certification rules;
227.32 	(6) the extent to which the applicant demonstrates the delivery of quality care, as 
227.33 	defined in state and federal statutes and rules, to residents as evidenced by the two most 
227.34 	recent state agency certification surveys and the applicants' response to those surveys;
228.1 	(7) the extent to which the project removes the need for waivers or variances 
228.2 	previously granted by either the licensing agency, certifying agency, fire marshal, or 
228.3 	local government entity;
228.4 	(8) the extent to which the project increases the number of private or single bed 
228.5 	rooms; and
228.6 	(9) the extent to which the applicant demonstrates the continuing need for nursing 
228.7 	facility care in the community and adjacent communities; and
228.8 	(10) other factors that may be developed in permanent rule by the commissioner of 
228.9 	health that evaluate and assess how the proposed project will further promote or protect 
228.10 	the health, safety, comfort, treatment, or well-being of the facility's residents.

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

228.12 	Sec. 3. Minnesota Statutes 2006, section 252.27, subdivision 2a, is amended to read:
228.13 		Subd. 2a.Contribution amount. (a) The natural or adoptive parents of a minor 
228.14 	child, including a child determined eligible for medical assistance without consideration of 
228.15 	parental income, must contribute to the cost of services used by making monthly payments 
228.16 	on a sliding scale based on income, unless the child is married or has been married, 
228.17 	parental rights have been terminated, or the child's adoption is subsidized according to 
228.18 	section 259.67 or through title IV-E of the Social Security Act. The parental contribution 
228.19 	is a partial or full payment for medical services provided for diagnostic, therapeutic, 
228.20 	curing, treating, mitigating, rehabilitation, maintenance, and personal care services as 
228.21 	defined in United States Code, title 26, section 213, needed by the child with a chronic 
228.22 	illness or disability.
228.23 	(b) For households with adjusted gross income equal to or greater than 100 percent 
228.24 	of federal poverty guidelines, the parental contribution shall be computed by applying the 
228.25 	following schedule of rates to the adjusted gross income of the natural or adoptive parents:
228.26 	(1) if the adjusted gross income is equal to or greater than 100 percent of federal 
228.27 	poverty guidelines and less than 175 percent of federal poverty guidelines, the parental 
228.28 	contribution is $4 per month;
228.29 	(2) if the adjusted gross income is equal to or greater than 175 percent of federal 
228.30 	poverty guidelines and less than or equal to 545 percent of federal poverty guidelines, 
228.31 	the parental contribution shall be determined using a sliding fee scale established by the 
228.32 	commissioner of human services which begins at one percent of adjusted gross income 
228.33 	at 175 percent of federal poverty guidelines and increases to 7.5 percent of adjusted 
228.34 	gross income for those with adjusted gross income up to 545 percent of federal poverty 
228.35 	guidelines;
229.1 	(3) if the adjusted gross income is greater than 545 percent of federal poverty 
229.2 	guidelines and less than 675 percent of federal poverty guidelines, the parental 
229.3 	contribution shall be 7.5 percent of adjusted gross income;
229.4 	(4) if the adjusted gross income is equal to or greater than 675 percent of federal 
229.5 	poverty guidelines and less than 975 percent of federal poverty guidelines, the parental 
229.6 	contribution shall be determined using a sliding fee scale established by the commissioner 
229.7 	of human services which begins at 7.5 percent of adjusted gross income at 675 percent of 
229.8 	federal poverty guidelines and increases to ten percent of adjusted gross income for those 
229.9 	with adjusted gross income up to 975 percent of federal poverty guidelines; and
229.10 	(5) if the adjusted gross income is equal to or greater than 975 percent of federal 
229.11 	poverty guidelines, the parental contribution shall be 12.5 percent of adjusted gross 
229.12 	income.
229.13 	If the child lives with the parent, the annual adjusted gross income is reduced by 
229.14 	$2,400 prior to calculating the parental contribution. If the child resides in an institution 
229.15 	specified in section 256B.35, the parent is responsible for the personal needs allowance 
229.16 	specified under that section in addition to the parental contribution determined under this 
229.17 	section. The parental contribution is reduced by any amount required to be paid directly to 
229.18 	the child pursuant to a court order, but only if actually paid.
229.19 	(c) The household size to be used in determining the amount of contribution under 
229.20 	paragraph (b) includes natural and adoptive parents and their dependents, including the 
229.21 	child receiving services. Adjustments in the contribution amount due to annual changes 
229.22 	in the federal poverty guidelines shall be implemented on the first day of July following 
229.23 	publication of the changes.
229.24 	(d) For purposes of paragraph (b), "income" means the adjusted gross income of the 
229.25 	natural or adoptive parents determined according to the previous year's federal tax form, 
229.26 	except, effective retroactive to July 1, 2003, taxable capital gains to the extent the funds 
229.27 	have been used to purchase a home shall not be counted as income.
229.28 	(e) The contribution shall be explained in writing to the parents at the time eligibility 
229.29 	for services is being determined. The contribution shall be made on a monthly basis 
229.30 	effective with the first month in which the child receives services. Annually upon 
229.31 	redetermination or at termination of eligibility, if the contribution exceeded the cost of 
229.32 	services provided, the local agency or the state shall reimburse that excess amount to 
229.33 	the parents, either by direct reimbursement if the parent is no longer required to pay 
229.34 	a contribution, or by a reduction in or waiver of parental fees until the excess amount 
229.35 	is exhausted.
230.1 	(f) The monthly contribution amount must be reviewed at least every 12 months; 
230.2 	when there is a change in household size; and when there is a loss of or gain in income 
230.3 	from one month to another in excess of ten percent. The local agency shall mail a written 
230.4 	notice 30 days in advance of the effective date of a change in the contribution amount. 
230.5 	A decrease in the contribution amount is effective in the month that the parent verifies a 
230.6 	reduction in income or change in household size.
230.7 	(g) Parents of a minor child who do not live with each other shall each pay the 
230.8 	contribution required under paragraph (a). An amount equal to the annual court-ordered 
230.9 	child support payment actually paid on behalf of the child receiving services shall be 
230.10 	deducted from the adjusted gross income of the parent making the payment prior to 
230.11 	calculating the parental contribution under paragraph (b).
230.12 	(h) The contribution under paragraph (b) shall be increased by an additional five 
230.13 	percent if the local agency determines that insurance coverage is available but not 
230.14 	obtained for the child. For purposes of this section, "available" means the insurance is a 
230.15 	benefit of employment for a family member at an annual cost of no more than five percent 
230.16 	of the family's annual income. For purposes of this section, "insurance" means health 
230.17 	and accident insurance coverage, enrollment in a nonprofit health service plan, health 
230.18 	maintenance organization, self-insured plan, or preferred provider organization.
230.19 	Parents who have more than one child receiving services shall not be required 
230.20 	to pay more than the amount for the child with the highest expenditures. There shall 
230.21 	be no resource contribution from the parents. The parent shall not be required to pay 
230.22 	a contribution in excess of the cost of the services provided to the child, not counting 
230.23 	payments made to school districts for education-related services. Notice of an increase in 
230.24 	fee payment must be given at least 30 days before the increased fee is due.
230.25 	(i) The contribution under paragraph (b) shall be reduced by $300 per fiscal year if, 
230.26 	in the 12 months prior to July 1:
230.27 	(1) the parent applied for insurance for the child;
230.28 	(2) the insurer denied insurance;
230.29 	(3) the parents submitted a complaint or appeal, in writing to the insurer, submitted 
230.30 	a complaint or appeal, in writing, to the commissioner of health or the commissioner of 
230.31 	commerce, or litigated the complaint or appeal; and
230.32 	(4) as a result of the dispute, the insurer reversed its decision and granted insurance.
230.33 	For purposes of this section, "insurance" has the meaning given in paragraph (h).
230.34 	A parent who has requested a reduction in the contribution amount under this 
230.35 	paragraph shall submit proof in the form and manner prescribed by the commissioner or 
230.36 	county agency, including, but not limited to, the insurer's denial of insurance, the written 
231.1 	letter or complaint of the parents, court documents, and the written response of the insurer 
231.2 	approving insurance. The determinations of the commissioner or county agency under this 
231.3 	paragraph are not rules subject to chapter 14.

231.4 	Sec. 4. [252.295] LICENSING EXCEPTION.
231.5 	(a) Notwithstanding section 252.294, the commissioner may license two six-bed, 
231.6 	level B intermediate care facilities for persons with developmental disabilities (ICF's/MR) 
231.7 	to replace a 15-bed level A facility in Minneapolis that is not accessible to persons with 
231.8 	disabilities. The new facilities must be accessible to persons with disabilities and must 
231.9 	be located on a different site or sites in Hennepin County. Notwithstanding section 
231.10 	256B.5012, the payment rate at the new facilities is $200.47 plus any rate adjustments for 
231.11 	ICF's/MR effective on or after July 1, 2007.
231.12 	(b) Notwithstanding section 252.294, the commissioner may license one six-bed 
231.13 	level B intermediate care facility for persons with developmental disabilities to replace 
231.14 	a downsized 21-bed facility attached to a day training and habilitation program in 
231.15 	Chisholm. Notwithstanding section 256B.5012, the facility must serve persons who 
231.16 	require substantial nursing care and are able to leave the facility to receive day training 
231.17 	and habilitation services. The payment rate at this facility is $274.50.
231.18 	(c) Notwithstanding section 256B.5012, the payment rate of a six-bed level B 
231.19 	intermediate care facility for persons with developmental disabilities in Hibbing, with a 
231.20 	per diem rate of $164.13 as of March 1, 2007, for persons who require substantial nursing 
231.21 	care and are able to leave the facility to receive day training and habilitation services shall 
231.22 	be increased to $250.84.
231.23 	(d) The payment rates in paragraphs (b) and (c) are effective October 1, 2009.

231.24 	Sec. 5. Minnesota Statutes 2006, section 256.01, is amended by adding a subdivision 
231.25 	to read:
231.26 		Subd. 23.Reverse mortgage information and referral. The commissioner, in 
231.27 	cooperation with the commissioner of the Minnesota Housing Finance Agency, shall: 
231.28 	(1) establish an information and referral system to inform eligible persons regarding 
231.29 	the availability of reverse mortgages and state incentives available to persons who take 
231.30 	out certain reverse mortgages. The information and referral system shall be established 
231.31 	involving the Senior LinkAge Line, county and tribal agencies, community housing 
231.32 	agencies and organizations, Minnesota-certified reverse mortgage counselors, reverse 
231.33 	mortgage lenders, senior and elder community organizations, and other relevant entities; 
231.34 	and 
232.1 	(2) coordinate necessary training for Senior LinkAge Line employees, mortgage 
232.2 	counselors, and lenders regarding the provisions of sections 256B.0913, subdivision 
232.3 	17, and 462A.05, subdivision 42.

232.4 	Sec. 6. Minnesota Statutes 2006, section 256.01, is amended by adding a subdivision 
232.5 	to read:
232.6 		Subd. 24.Disability linkage line. The commissioner shall establish the disability 
232.7 	linkage line, a statewide consumer information, referral, and assistance system for people 
232.8 	with disabilities and chronic illnesses that: 
232.9 	(1) provides information about state and federal eligibility requirements, benefits, 
232.10 	and service options; 
232.11 	(2) makes referrals to appropriate support entities; 
232.12 	(3) delivers information and assistance based on national and state standards; 
232.13 	(4) assists people to make well-informed decisions; and 
232.14 	(5) supports the timely resolution of service access and benefit issues.

232.15 	Sec. 7. Minnesota Statutes 2006, section 256.975, subdivision 7, is amended to read:
232.16 		Subd. 7.Consumer information and assistance; senior linkage. (a) The 
232.17 	Minnesota Board on Aging shall operate a statewide information and assistance service 
232.18 	to aid older Minnesotans and their families in making informed choices about long-term 
232.19 	care options and health care benefits. Language services to persons with limited English 
232.20 	language skills may be made available. The service, known as Senior LinkAge Line, must 
232.21 	be available during business hours through a statewide toll-free number and must also 
232.22 	be available through the Internet.
232.23 	(b) The service must assist older adults, caregivers, and providers in accessing 
232.24 	information about choices in long-term care services that are purchased through private 
232.25 	providers or available through public options. The service must:
232.26 	(1) develop a comprehensive database that includes detailed listings in both 
232.27 	consumer- and provider-oriented formats;
232.28 	(2) make the database accessible on the Internet and through other telecommunication 
232.29 	and media-related tools;
232.30 	(3) link callers to interactive long-term care screening tools and make these tools 
232.31 	available through the Internet by integrating the tools with the database;
232.32 	(4) develop community education materials with a focus on planning for long-term 
232.33 	care and evaluating independent living, housing, and service options;
233.1 	(5) conduct an outreach campaign to assist older adults and their caregivers in 
233.2 	finding information on the Internet and through other means of communication;
233.3 	(6) implement a messaging system for overflow callers and respond to these callers 
233.4 	by the next business day;
233.5 	(7) link callers with county human services and other providers to receive more 
233.6 	in-depth assistance and consultation related to long-term care options; and
233.7 	(8) link callers with quality profiles for nursing facilities and other providers 
233.8 	developed by the commissioner of health.;
233.9 	(9) provide information and assistance to inform older adults about reverse 
233.10 	mortgages, including the provisions of sections 47.58, 256B.0913, subdivision 17, and 
233.11 	462A.05, subdivision 42; and
233.12 	(10) incorporate information about housing with services and consumer rights 
233.13 	within the MinnesotaHelp.info network long-term care database to facilitate consumer 
233.14 	comparison of services and costs among housing with services establishments and with 
233.15 	other in-home services and to support financial self-sufficiency as long as possible. 
233.16 	Housing with services establishments and their arranged home care providers shall provide 
233.17 	information to the commissioner of human services that is consistent with information 
233.18 	required by the commissioner of health under section 144G.06, the Uniform Consumer 
233.19 	Information Guide. The commissioner of human services shall provide the data to the 
233.20 	Minnesota Board on Aging for inclusion in the MinnesotaHelp.info network long-term 
233.21 	care database.
233.22 	(c) The Minnesota Board on Aging shall conduct an evaluation of the effectiveness 
233.23 	of the statewide information and assistance, and submit this evaluation to the legislature 
233.24 	by December 1, 2002. The evaluation must include an analysis of funding adequacy, gaps 
233.25 	in service delivery, continuity in information between the service and identified linkages, 
233.26 	and potential use of private funding to enhance the service.

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

233.28 	Sec. 8. Minnesota Statutes 2006, section 256B.056, subdivision 1a, is amended to read:
233.29 		Subd. 1a.Income and assets generally. Unless specifically required by state law or 
233.30 	rule or federal law or regulation, the methodologies used in counting income and assets 
233.31 	to determine eligibility for medical assistance for persons whose eligibility category is 
233.32 	based on blindness, disability, or age of 65 or more years, the methodologies for the 
233.33 	supplemental security income program shall be used, except as provided under subdivision 
233.34 	3, paragraph (f). Increases in benefits under title II of the Social Security Act shall not be 
233.35 	counted as income for purposes of this subdivision until July 1 of each year. Effective 
234.1 	upon federal approval, for children eligible under section 256B.055, subdivision 12, or 
234.2 	for home and community-based waiver services whose eligibility for medical assistance 
234.3 	is determined without regard to parental income, child support payments, including any 
234.4 	payments made by an obligor in satisfaction of or in addition to a temporary or permanent 
234.5 	order for child support, and Social Security payments are not counted as income. For 
234.6 	families and children, which includes all other eligibility categories, the methodologies 
234.7 	under the state's AFDC plan in effect as of July 16, 1996, as required by the Personal 
234.8 	Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), Public 
234.9 	Law 104-193, shall be used, except that effective October 1, 2003, the earned income 
234.10 	disregards and deductions are limited to those in subdivision 1c. For these purposes, a 
234.11 	"methodology" does not include an asset or income standard, or accounting method, 
234.12 	or method of determining effective dates.

234.13 	Sec. 9. Minnesota Statutes 2006, section 256B.056, subdivision 3, is amended to read:
234.14 		Subd. 3.Asset limitations for aged, blind, or disabled individuals and families.
 234.15 	To be eligible for medical assistance, a person must not individually own more than $3,000 
234.16 	in assets, or if a member of a household with two family members, husband and wife, 
234.17 	or parent and child, the household must not own more than $6,000 in assets, plus $200 
234.18 	for each additional legal dependent. In addition to these maximum amounts, an eligible 
234.19 	individual or family may accrue interest on these amounts, but they must be reduced to the 
234.20 	maximum at the time of an eligibility redetermination. The accumulation of the clothing 
234.21 	and personal needs allowance according to section 256B.35 must also be reduced to the 
234.22 	maximum at the time of the eligibility redetermination. The value of assets that are not 
234.23 	considered in determining eligibility for medical assistance is the value of those assets 
234.24 	excluded under the supplemental security income program for aged, blind, and disabled 
234.25 	persons, with the following exceptions: 
234.26 	(a) Household goods and personal effects are not considered.
234.27 	(b) Capital and operating assets of a trade or business that the local agency 
234.28 	determines are necessary to the person's ability to earn an income are not considered.
234.29 	(c) Motor vehicles are excluded to the same extent excluded by the supplemental 
234.30 	security income program.
234.31 	(d) Assets designated as burial expenses are excluded to the same extent excluded by 
234.32 	the supplemental security income program. Burial expenses funded by annuity contracts 
234.33 	or life insurance policies must irrevocably designate the individual's estate as contingent 
234.34 	beneficiary to the extent proceeds are not used for payment of selected burial expenses.
235.1 	(e) Effective upon federal approval, for a person who no longer qualifies as an 
235.2 	employed person with a disability due to loss of earnings, assets allowed while eligible 
235.3 	for medical assistance under section 256B.057, subdivision 9, are not considered for 12 
235.4 	months, beginning with the first month of ineligibility as an employed person with a 
235.5 	disability, to the extent that the person's total assets remain within the allowed limits of 
235.6 	section 256B.057, subdivision 9, paragraph (b). 
235.7 	(f) When a person enrolled in medical assistance under section 256B.057, 
235.8 	subdivision 9, reaches age 65 and has been enrolled during each of the 24 consecutive 
235.9 	months before the person's 65th birthday, the assets owned by the person and the person's 
235.10 	spouse must be disregarded, up to the limits of section 256B.057, subdivision 9, paragraph 
235.11 	(b), when determining eligibility for medical assistance under section 256B.055, 
235.12 	subdivision 7. The income of a spouse of a person enrolled in medical assistance under 
235.13 	section 256B.057, subdivision 9, during each of the 24 consecutive months before the 
235.14 	person's 65th birthday must be disregarded when determining eligibility for medical 
235.15 	assistance under section 256B.055, subdivision 7, when the person reaches age 65. This 
235.16 	paragraph does not apply at the time the person or the person's spouse requests medical 
235.17 	assistance payment for long-term care services.

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

235.19 	Sec. 10. Minnesota Statutes 2006, section 256B.0625, subdivision 18a, is amended to 
235.20 	read:
235.21 		Subd. 18a.Access to medical services. (a) Medical assistance reimbursement for 
235.22 	meals for persons traveling to receive medical care may not exceed $5.50 for breakfast, 
235.23 	$6.50 for lunch, or $8 for dinner.
235.24 	(b) Medical assistance reimbursement for lodging for persons traveling to receive 
235.25 	medical care may not exceed $50 per day unless prior authorized by the local agency.
235.26 	(c) Medical assistance direct mileage reimbursement to the eligible person or the 
235.27 	eligible person's driver may not exceed 20 cents per mile.
235.28 	(d) Regardless of the number of employees that an enrolled health care provider 
235.29 	may have, medical assistance covers sign and oral language interpreter services when 
235.30 	provided by an enrolled health care provider during the course of providing a direct, 
235.31 	person-to-person covered health care service to an enrolled recipient with limited English 
235.32 	proficiency or who has a hearing loss and uses interpreting services.

235.33 	Sec. 11. Minnesota Statutes 2006, section 256B.0625, is amended by adding a 
235.34 	subdivision to read:
236.1 		Subd. 49.Self-directed supports option. Upon federal approval, medical 
236.2 	assistance covers the self-directed supports option as defined under section 256B.0657 and 
236.3 	section 6087 of the Federal Deficit Reduction Act of 2005, Public Law 109-171.

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

236.7 	Sec. 12. Minnesota Statutes 2006, section 256B.0651, subdivision 7, is amended to 
236.8 	read:
236.9 		Subd. 7.Prior authorization; time limits. The commissioner or the commissioner's 
236.10 	designee shall determine the time period for which a prior authorization shall be effective 
236.11 	and, if flexible use has been requested, whether to allow the flexible use option. If 
236.12 	the recipient continues to require home care services beyond the duration of the prior 
236.13 	authorization, the home care provider must request a new prior authorization. A personal 
236.14 	care provider agency must request a new personal care assistant services assessment, or 
236.15 	service update if allowed, at least 60 days prior to the end of the current prior authorization 
236.16 	time period. The request for the assessment must be made on a form approved by the 
236.17 	commissioner. Under no circumstances, other than the exceptions in subdivision 4, shall a 
236.18 	prior authorization be valid prior to the date the commissioner receives the request or for 
236.19 	more than 12 months. A recipient who appeals a reduction in previously authorized home 
236.20 	care services may continue previously authorized services, other than temporary services 
236.21 	under subdivision 8, pending an appeal under section 256.045. The commissioner must 
236.22 	provide a detailed explanation of why the authorized services are reduced in amount from 
236.23 	those requested by the home care provider.

236.24 	Sec. 13. Minnesota Statutes 2006, section 256B.0655, subdivision 1b, is amended to 
236.25 	read:
236.26 		Subd. 1b.Assessment. "Assessment" means a review and evaluation of a recipient's 
236.27 	need for home care services conducted in person. Assessments for personal care assistant 
236.28 	services shall be conducted by the county public health nurse or a certified public 
236.29 	health nurse under contract with the county. A face-to-face assessment must include: 
236.30 	documentation of health status, determination of need, evaluation of service effectiveness, 
236.31 	identification of appropriate services, service plan development or modification, 
236.32 	coordination of services, referrals and follow-up to appropriate payers and community 
236.33 	resources, completion of required reports, recommendation of service authorization, and 
236.34 	consumer education. Once the need for personal care assistant services is determined 
237.1 	under this section or sections 256B.0651, 256B.0653, 256B.0654, and 256B.0656, the 
237.2 	county public health nurse or certified public health nurse under contract with the county 
237.3 	is responsible for communicating this recommendation to the commissioner and the 
237.4 	recipient. A face-to-face assessment for personal care assistant services is conducted 
237.5 	on those recipients who have never had a county public health nurse assessment. A 
237.6 	face-to-face assessment must occur at least annually or when there is a significant change 
237.7 	in the recipient's condition or when there is a change in the need for personal care assistant 
237.8 	services. A service update may substitute for the annual face-to-face assessment when 
237.9 	there is not a significant change in recipient condition or a change in the need for personal 
237.10 	care assistant service. A service update may be completed by telephone, used when there 
237.11 	is no need for an increase in personal care assistant services, and used for two consecutive 
237.12 	assessments if followed by a face-to-face assessment. A service update must be completed 
237.13 	on a form approved by the commissioner. A service update or review for temporary 
237.14 	increase includes a review of initial baseline data, evaluation of service effectiveness, 
237.15 	redetermination of service need, modification of service plan and appropriate referrals, 
237.16 	update of initial forms, obtaining service authorization, and on going consumer education. 
237.17 	Assessments must be completed on forms provided by the commissioner within 30 days 
237.18 	of a request for home care services by a recipient or responsible party or personal care 
237.19 	provider agency.

237.20 	Sec. 14. Minnesota Statutes 2006, section 256B.0655, subdivision 3, is amended to 
237.21 	read:
237.22 		Subd. 3.Assessment and service plan. Assessments under subdivision 1b 
237.23 	and sections 256B.0651, subdivision 1, paragraph (b), and 256B.0654, subdivision 1, 
237.24 	paragraph (a), shall be conducted initially, and at least annually thereafter, in person 
237.25 	with the recipient and result in a completed service plan using forms specified by 
237.26 	the commissioner. A personal care provider agency must use a form approved by 
237.27 	the commissioner to request a county public health nurse to conduct a personal care 
237.28 	assistant services assessment. When requesting a reassessment, the personal care provider 
237.29 	agency must notify the county and the recipient at least 60 days prior to the end of the 
237.30 	current prior authorization for personal care assistant services. The recipient notice 
237.31 	shall include information on the recipient's appeal rights. Within 30 days of recipient 
237.32 	or responsible party or personal care assistant provider agency request for home care 
237.33 	services, the assessment, the service plan, and other information necessary to determine 
237.34 	medical necessity such as diagnostic or testing information, social or medical histories, 
237.35 	and hospital or facility discharge summaries shall be submitted to the commissioner. 
238.1 	Notwithstanding the provisions of subdivision 8, the commissioner shall maximize 
238.2 	federal financial participation to pay for public health nurse assessments for personal care 
238.3 	services. For personal care assistant services:
238.4 	(1) The amount and type of service authorized based upon the assessment and 
238.5 	service plan will follow the recipient if the recipient chooses to change providers.
238.6 	(2) If the recipient's need changes, the recipient's provider may assess the need for 
238.7 	a change in service authorization and request the change from the county public health 
238.8 	nurse. The request must be made on a form approved by the commissioner. Within 30 
238.9 	days of the request, the public health nurse will determine whether to request the change 
238.10 	in services based upon the provider assessment, or conduct a home visit to assess the need 
238.11 	and determine whether the change is appropriate. If the change in service need is due to 
238.12 	a change in medical condition, a new physician's statement of need required by section 
238.13 	256B.0625, subdivision 19c, must be obtained.
238.14 	(3) To continue to receive personal care assistant services after the first year, 
238.15 	the recipient or the responsible party, in conjunction with the public health nurse, 
238.16 	may complete a service update on forms developed by the commissioner according to 
238.17 	criteria and procedures in subdivisions 1a to 1i and sections 256B.0651, subdivision 1; 
238.18 	256B.0653, subdivision 1; and 256B.0654, subdivision 1.

238.19 	Sec. 15. Minnesota Statutes 2006, section 256B.0655, subdivision 8, is amended to 
238.20 	read:
238.21 		Subd. 8.Public health nurse assessment rate. (a) The reimbursement rates for 
238.22 	public health nurse visits that relate to the provision of personal care services under this 
238.23 	section and section 256B.0625, subdivision 19a, are:
238.24 	(i) $210.50 for a face-to-face assessment visit;
238.25 	(ii) $105.25 for each service update; and
238.26 	(iii) $105.25 for each request for a temporary service increase.
238.27 	(b) The rates specified in paragraph (a) must be adjusted to reflect provider rate 
238.28 	increases for personal care assistant services that are approved by the legislature for the 
238.29 	fiscal year ending June 30, 2000, and subsequent fiscal years. Any requirements applied 
238.30 	by the legislature to provider rate increases for personal care assistant services also apply 
238.31 	to adjustments under this paragraph.
238.32 	(c) Effective July 1, 2008, the payment rate for an assessment under this section and 
238.33 	section 256B.0651 shall be reduced by 25 percent when the assessment is not completed 
238.34 	on time or the service agreement documentation is not submitted in time to continue 
238.35 	services. The commissioner shall recoup these amounts on a retroactive basis.

239.1 	Sec. 16. [256B.0657] SELF-DIRECTED SUPPORTS OPTION.
239.2 		Subdivision 1.Definition. "Self-directed supports option" means personal 
239.3 	assistance, supports, items, and related services purchased under an approved budget 
239.4 	plan and budget by a recipient.
239.5 		Subd. 2.Eligibility. (a) The self-directed supports option is available to a person 
239.6 	who:
239.7 	(1) is a recipient of medical assistance as determined under sections 256B.055, 
239.8 	256B.056, and 256B.057, subdivision 9;
239.9 	(2) is eligible for personal care assistant services under section 256B.0655;
239.10 	(3) lives in the person's own apartment or home, which is not owned, operated, or 
239.11 	controlled by a provider of services not related by blood or marriage;
239.12 	(4) has the ability to hire, fire, supervise, establish staff compensation for, and 
239.13 	manage the individuals providing services, and to choose and obtain items, related 
239.14 	services, and supports as described in the participant's plan. If the recipient is not able to 
239.15 	carry out these functions but has a legal guardian or parent to carry them out, the guardian 
239.16 	or parent may fulfill these functions on behalf of the recipient; and
239.17 	(5) has not been excluded or disenrolled by the commissioner.
239.18 	(b) The commissioner may disenroll or exclude recipients, including guardians and 
239.19 	parents, under the following circumstances:
239.20 	(1) recipients who have been restricted by the Primary Care Utilization Review 
239.21 	Committee may be excluded for a specified time period; and 
239.22 	(2) recipients who exit the self-directed supports option during the recipient's 
239.23 	service plan year shall not access the self-directed supports option for the remainder 
239.24 	of that service plan year.
239.25 		Subd. 3.Eligibility for other services. Selection of the self-directed supports 
239.26 	option by a recipient shall not restrict access to other medically necessary care and 
239.27 	services furnished under the state plan medical assistance benefit, including home care 
239.28 	targeted case management, except that a person receiving home and community-based 
239.29 	waiver services, a family support grant or a consumer support grant is not eligible for 
239.30 	funding under the self-directed supports option.
239.31 		Subd. 4.Assessment requirements. (a) The self-directed supports option 
239.32 	assessment must meet the following requirements:
239.33 	(1) it shall be conducted by the county public health nurse or a certified public 
239.34 	health nurse under contract with the county;
239.35 	(2) it shall be conducted face-to-face in the recipient's home initially, and at least 
239.36 	annually thereafter; when there is a significant change in the recipient's condition; and 
240.1 	when there is a change in the need for personal care assistant services. A recipient who is 
240.2 	residing in a facility may be assessed for the self-directed support option for the purpose 
240.3 	of returning to the community using this option; and 
240.4 	(3) it shall be completed using the format established by the commissioner.
240.5 	(b) The results of the assessment and recommendations shall be communicated to 
240.6 	the commissioner and the recipient by the county public health nurse or certified public 
240.7 	health nurse under contract with the county.
240.8 		Subd. 5.Self-directed supports option plan requirements. (a) The plan for the 
240.9 	self-directed supports option must meet the following requirements:
240.10 	(1) the plan must be completed using a person-centered process that:
240.11 	(i) builds upon the recipient's capacity to engage in activities that promote 
240.12 	community life;
240.13 	(ii) respects the recipient's preferences, choices, and abilities;
240.14 	(iii) involves families, friends, and professionals in the planning or delivery of 
240.15 	services or supports as desired or required by the recipient; and 
240.16 	(iv) addresses the need for personal care assistant services identified in the recipient's 
240.17 	self-directed supports option assessment;
240.18 	(2) the plan shall be developed by the recipient or by the guardian of an adult 
240.19 	recipient or by a parent or guardian of a minor child, with the assistance of an enrolled 
240.20 	medical assistance home care targeted case manager provider who meets the requirements 
240.21 	established for using a person-centered planning process and shall be reviewed at least 
240.22 	annually upon reassessment or when there is a significant change in the recipient's 
240.23 	condition; and 
240.24 	(3) the plan must include the total budget amount available divided into monthly 
240.25 	amounts that cover the number of months of personal care assistant services authorization 
240.26 	included in the budget. The amount used each month may vary, but additional funds shall 
240.27 	not be provided above the annual personal care assistant services authorized amount 
240.28 	unless a change in condition is documented.
240.29 	(b) The commissioner shall:
240.30 	(1) establish the format and criteria for the plan as well as the requirements for 
240.31 	providers who assist with plan development;
240.32 	(2) review the assessment and plan and, within 30 days after receiving the 
240.33 	assessment and plan, make a decision on approval of the plan;
240.34 	(3) notify the recipient, parent, or guardian of approval or denial of the plan and 
240.35 	provide notice of the right to appeal under section 256.045; and 
240.36 	(4) provide a copy of the plan to the fiscal support entity selected by the recipient.
241.1 		Subd. 6.Services covered. (a) Services covered under the self-directed supports 
241.2 	option include:
241.3 	(1) personal care assistant services under section 256B.0655; and 
241.4 	(2) items, related services, and supports, including assistive technology, that increase 
241.5 	independence or substitute for human assistance to the extent expenditures would 
241.6 	otherwise be used for human assistance.
241.7 	(b) Items, supports, and related services purchased under this option shall not be 
241.8 	considered home care services for the purposes of section 144A.43.
241.9 		Subd. 7.Noncovered services. Services or supports that are not eligible for 
241.10 	payment under the self-directed supports option include:
241.11 	(1) services, goods, or supports that do not benefit the recipient;
241.12 	(2) any fees incurred by the recipient, such as Minnesota health care program fees 
241.13 	and co-pays, legal fees, or costs related to advocate agencies;
241.14 	(3) insurance, except for insurance costs related to employee coverage or fiscal 
241.15 	support entity payments;
241.16 	(4) room and board and personal items that are not related to the disability, except 
241.17 	that medically prescribed specialized diet items may be covered if they reduce the need for 
241.18 	human assistance;
241.19 	(5) home modifications that add square footage;
241.20 	(6) home modifications for a residence other than the primary residence of the 
241.21 	recipient, or in the event of a minor with parents not living together, the primary residences 
241.22 	of the parents;
241.23 	(7) expenses for travel, lodging, or meals related to training the recipient, the parent 
241.24 	or guardian of an adult recipient, or the parent or guardian of a minor child, or paid or 
241.25 	unpaid caregivers that exceed $500 in a 12-month period;
241.26 	(8) experimental treatment;
241.27 	(9) any service or item covered by other medical assistance state plan services, 
241.28 	including prescription and over-the-counter medications, compounds, and solutions and 
241.29 	related fees, including premiums and co-payments;
241.30 	(10) membership dues or costs, except when the service is necessary and appropriate 
241.31 	to treat a physical condition or to improve or maintain the recipient's physical condition. 
241.32 	The condition must be identified in the recipient's plan of care and monitored by a 
241.33 	Minnesota health care program enrolled physician;
241.34 	(11) vacation expenses other than the cost of direct services;
241.35 	(12) vehicle maintenance or modifications not related to the disability;
241.36 	(13) tickets and related costs to attend sporting or other recreational events; and
242.1 	(14) costs related to Internet access, except when necessary for operation of assistive 
242.2 	technology, to increase independence, or to substitute for human assistance.
242.3 		Subd. 8.Self-directed budget requirements. The budget for the provision of the 
242.4 	self-directed service option shall be equal to the greater of either:
242.5 	(1) the annual amount of personal care assistant services under section 256B.0655 
242.6 	that the recipient has used in the most recent 12-month period; or 
242.7 	(2) the amount determined using the consumer support grant methodology under 
242.8 	section 256.476, subdivision 11, except that the budget amount shall include the federal 
242.9 	and nonfederal share of the average service costs.
242.10 		Subd. 9.Quality assurance and risk management. (a) The commissioner 
242.11 	shall establish quality assurance and risk management measures for use in developing 
242.12 	and implementing self-directed plans and budgets that (1) recognize the roles and 
242.13 	responsibilities involved in obtaining services in a self-directed manner, and (2) assure 
242.14 	the appropriateness of such plans and budgets based upon a recipient's resources and 
242.15 	capabilities. These measures must include (i) background studies, and (ii) backup and 
242.16 	emergency plans, including disaster planning.
242.17 	(b) The commissioner shall provide ongoing technical assistance and resource and 
242.18 	educational materials for families and recipients selecting the self-directed option.
242.19 	(c) Performance assessments measures, such as of a recipient's satisfaction with the 
242.20 	services and supports, and ongoing monitoring of health and well-being shall be identified 
242.21 	in consultation with the stakeholder group.
242.22 		Subd. 10.Fiscal support entity. (a) Each recipient shall choose a fiscal support 
242.23 	entity provider certified by the commissioner to make payments for services, items, 
242.24 	supports, and administrative costs related to managing a self-directed service plan 
242.25 	authorized for payment in the approved plan and budget. Recipients shall also choose 
242.26 	the payroll, agency with choice, or the fiscal conduit model of financial and service 
242.27 	management.
242.28 	(b) The fiscal support entity:
242.29 	(1) may not limit or restrict the recipient's choice of service or support providers, 
242.30 	including use of the payroll, agency with choice, or fiscal conduit model of financial 
242.31 	and service management; 
242.32 	(2) must have a written agreement with the recipient or the recipient's representative 
242.33 	that identifies the duties and responsibilities to be performed and the specific related 
242.34 	charges; 
243.1 	(3) must provide the recipient and the home care targeted case manager with a 
243.2 	monthly written summary of the self-directed supports option services that were billed, 
243.3 	including charges from the fiscal support entity;
243.4 	(4) must be knowledgeable of and comply with Internal Revenue Service 
243.5 	requirements necessary to process employer and employee deductions, provide appropriate 
243.6 	and timely submission of employer tax liabilities, and maintain documentation to support 
243.7 	medical assistance claims; 
243.8 	(5) must have current and adequate liability insurance and bonding and sufficient 
243.9 	cash flow and have on staff or under contract a certified public accountant or an individual 
243.10 	with a baccalaureate degree in accounting; and 
243.11 	(6) must maintain records to track all self-directed supports option services 
243.12 	expenditures, including time records of persons paid to provide supports and receipts for 
243.13 	any goods purchased. The records must be maintained for a minimum of five years from 
243.14 	the claim date and be available for audit or review upon request. Claims submitted by 
243.15 	the fiscal support entity must correspond with services, amounts, and time periods as 
243.16 	authorized in the recipient's self-directed supports option plan.
243.17 	(c) The commissioner shall have authority to:
243.18 	(1) set or negotiate rates with fiscal support entities;
243.19 	(2) limit the number of fiscal support entities;
243.20 	(3) identify a process to certify and recertify fiscal support entities and assure fiscal 
243.21 	support entities are available to recipients throughout the state; and 
243.22 	(4) establish a uniform format and protocol to be used by eligible fiscal support 
243.23 	entities.
243.24 		Subd. 11.Stakeholder consultation. The commissioner shall consult with a 
243.25 	statewide consumer-directed services stakeholder group, including representatives of 
243.26 	all types of consumer-directed service users, advocacy organizations, counties, and 
243.27 	consumer-directed service providers. The commissioner shall seek recommendations 
243.28 	from this stakeholder group in developing:
243.29 	(1) the self-directed plan format;
243.30 	(2) requirements and guidelines for the person-centered plan assessment and 
243.31 	planning process;
243.32 	(3) implementation of the option and the quality assurance and risk management 
243.33 	techniques; and 
243.34 	(4) standards and requirements, including rates for the personal support plan 
243.35 	development provider and the fiscal support entity; policies; training; and implementation. 
243.36 	The stakeholder group shall provide recommendations on the repeal of the personal care 
244.1 	assistant choice option, transition issues, and whether the consumer support grant program 
244.2 	under section 256.476 should be modified. The stakeholder group shall meet at least 
244.3 	three times each year to provide advice on policy, implementation, and other aspects of 
244.4 	consumer and self-directed services.

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

244.9 	Sec. 17. Minnesota Statutes 2006, section 256B.0911, subdivision 1a, is amended to 
244.10 	read:
244.11 		Subd. 1a.Definitions. For purposes of this section, the following definitions apply:
244.12 	(a) "Long-term care consultation services" means:
244.13 	(1) providing information and education to the general public regarding availability 
244.14 	of the services authorized under this section;
244.15 	(2) an intake process that provides access to the services described in this section;
244.16 	(3) assessment of the health, psychological, and social needs of referred individuals;
244.17 	(4) assistance in identifying services needed to maintain an individual in the least 
244.18 	restrictive environment;
244.19 	(5) providing recommendations on cost-effective community services that are 
244.20 	available to the individual;
244.21 	(6) development of an individual's community support plan, which may include the 
244.22 	use of reverse mortgage payments to pay for services needed to maintain the individual in 
244.23 	the person's home;
244.24 	(7) providing information regarding eligibility for Minnesota health care programs;
244.25 	(8) preadmission screening to determine the need for a nursing facility level of care;
244.26 	(9) preliminary determination of Minnesota health care programs eligibility for 
244.27 	individuals who need a nursing facility level of care, with appropriate referrals for final 
244.28 	determination;
244.29 	(10) providing recommendations for nursing facility placement when there are no 
244.30 	cost-effective community services available; and
244.31 	(11) assistance to transition people back to community settings after facility 
244.32 	admission.
244.33 	(b) "Minnesota health care programs" means the medical assistance program under 
244.34 	chapter 256B and the alternative care program under section 256B.0913.

245.1 	Sec. 18. Minnesota Statutes 2006, section 256B.0911, subdivision 3a, is amended to 
245.2 	read:
245.3 		Subd. 3a.Assessment and support planning. (a) Persons requesting assessment, 
245.4 	services planning, or other assistance intended to support community-based living, 
245.5 	including persons who need assessment in order to determine waiver or alternative care 
245.6 	program eligibility, must be visited by a long-term care consultation team within ten 
245.7 	working days after the date on which an assessment was requested or recommended. 
245.8 	Assessments must be conducted according to paragraphs (b) to (g) (i).
245.9 	(b) The county may utilize a team of either the social worker or public health nurse, 
245.10 	or both, to conduct the assessment in a face-to-face interview. The consultation team 
245.11 	members must confer regarding the most appropriate care for each individual screened or 
245.12 	assessed.
245.13 	(c) The long-term care consultation team must assess the health and social needs of 
245.14 	the person, using an assessment form provided by the commissioner.
245.15 	(d) The team must conduct the assessment in a face-to-face interview with the 
245.16 	person being assessed and the person's legal representative, if applicable.
245.17 	(e) The team must provide the person, or the person's legal representative, with 
245.18 	written recommendations for facility- or community-based services. The team must 
245.19 	document that the most cost-effective alternatives available were offered to the individual. 
245.20 	For purposes of this requirement, "cost-effective alternatives" means community services 
245.21 	and living arrangements that cost the same as or less than nursing facility care.
245.22 	(f) If the person chooses to use community-based services, the team must provide 
245.23 	the person or the person's legal representative with a written community support plan, 
245.24 	regardless of whether the individual is eligible for Minnesota health care programs. 
245.25 	The person may request assistance in developing a community support plan without 
245.26 	participating in a complete assessment. If the person chooses to obtain a reverse mortgage 
245.27 	under section 47.58 as part of the community support plan, the plan must include a 
245.28 	spending plan for the reverse mortgage payments.
245.29 	(g) The person has the right to make the final decision between nursing facility 
245.30 	placement and community placement after the screening team's recommendation, except 
245.31 	as provided in subdivision 4a, paragraph (c).
245.32 	(h) The team must give the person receiving assessment or support planning, or 
245.33 	the person's legal representative, materials, and forms supplied by the commissioner 
245.34 	containing the following information:
245.35 	(1) the need for and purpose of preadmission screening and assessment if the person 
245.36 	selects nursing facility placement;
246.1 	(2) the role of the long-term care consultation assessment and support planning in 
246.2 	waiver and alternative care program eligibility determination;
246.3 	(2) (3) information about Minnesota health care programs and about reverse 
246.4 	mortgages, including the provisions of sections 47.58; 256B.0913, subdivision 17; and 
246.5 	462A.05, subdivision 42;
246.6 	(3) (4) the person's freedom to accept or reject the recommendations of the team;
246.7 	(4) (5) the person's right to confidentiality under the Minnesota Government Data 
246.8 	Practices Act, chapter 13; and
246.9 	(6) the long-term care consultant's decision regarding the person's need for nursing 
246.10 	facility level of care;
246.11 	(5) (7) the person's right to appeal the decision regarding the need for nursing facility 
246.12 	level of care or the county's final decisions regarding public programs eligibility according 
246.13 	to section 256.045, subdivision 3. 
246.14 	(i) Face-to-face assessment completed as part of eligibility determination for 
246.15 	the alternative care, elderly waiver, community alternatives for disabled individuals, 
246.16 	community alternative care, and traumatic brain injury waiver programs under sections 
246.17 	256B.0915, 256B.0917, and 256B.49 is valid to establish service eligibility for no more 
246.18 	than 60 calendar days after the date of assessment. The effective eligibility start date 
246.19 	for these programs can never be prior to the date of assessment. If an assessment was 
246.20 	completed more than 60 days before the effective waiver or alternative care program 
246.21 	eligibility start date, assessment and support plan information must be updated in a 
246.22 	face-to-face visit and documented in the department's Medicaid Management Information 
246.23 	System (MMIS). The effective date of program eligibility in this case cannot be prior to 
246.24 	the date the updated assessment is completed.

246.25 	Sec. 19. Minnesota Statutes 2006, section 256B.0911, is amended by adding a 
246.26 	subdivision to read:
246.27 		Subd. 3c.Transition to housing with services. (a) Housing with services 
246.28 	establishments offering or providing assisted living under chapter 144G shall inform 
246.29 	all prospective residents of the availability of and contact information for transitional 
246.30 	consultation services under this subdivision prior to executing a lease or contract with the 
246.31 	prospective resident. The purpose of transitional long-term care consultation is to support 
246.32 	persons with current or anticipated long-term care needs in making informed choices 
246.33 	among options that include the most cost-effective and least restrictive settings, and to 
246.34 	delay spenddown to eligibility for publicly funded programs by connecting people to 
246.35 	alternative services in their homes before transition to housing with services. Regardless 
247.1 	of the consultation, prospective residents maintain the right to choose housing with 
247.2 	services or assisted living if that option is their preference.
247.3 	(b) Transitional consultation services are provided as determined by the 
247.4 	commissioner of human services in partnership with county long-term care consultation 
247.5 	units, and the Area Agencies on Aging, and are a combination of telephone-based 
247.6 	and in-person assistance provided under models developed by the commissioner. The 
247.7 	consultation shall be performed in a manner that provides objective and complete 
247.8 	information. Transitional consultation must be provided within five working days of the 
247.9 	request of the prospective resident as follows:
247.10 	(1) the consultation must be provided by a qualified professional as determined by 
247.11 	the commissioner;
247.12 	(2) the consultation must include a review of the prospective resident's reasons for 
247.13 	considering assisted living, the prospective resident's personal goals, a discussion of the 
247.14 	prospective resident's immediate and projected long-term care needs, and alternative 
247.15 	community services or assisted living settings that may meet the prospective resident's 
247.16 	needs; and
247.17 	(3) the prospective resident shall be informed of the availability of long-term care 
247.18 	consultation services described in subdivision 3a that are available at no charge to the 
247.19 	prospective resident to assist the prospective resident in assessment and planning to meet 
247.20 	the prospective resident's long-term care needs.

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

247.22 	Sec. 20. Minnesota Statutes 2006, section 256B.0913, is amended by adding a 
247.23 	subdivision to read:
247.24 		Subd. 17.Services for persons using reverse mortgages. (a) Alternative care 
247.25 	services are available to a person if:
247.26 	(1) the person qualifies for the reverse mortgage incentive program under section 
247.27 	462A.05, subdivision 42, and has received the final payment on a qualifying reverse 
247.28 	mortgage, or the person satisfies the criteria in section 462A.05, subdivision 42, paragraph 
247.29 	(b), clauses (1) to (5), and has otherwise obtained a reverse mortgage and payments from 
247.30 	the reverse mortgage for a period of at least 24 months or in an amount of at least $15,000 
247.31 	are used for services and supports, including basic shelter needs, home maintenance, and 
247.32 	modifications or adaptations, necessary to allow the person to remain in the home as an 
247.33 	alternative to a nursing facility placement; and 
248.1 	(2) the person satisfies the eligibility criteria under this section, other than age, 
248.2 	income, and assets, and verifies that reverse mortgage expenditures were made according 
248.3 	to the spending plan established under section 256B.0911, if one has been established.
248.4 	(b) In addition to the other services provided under this section, a person who 
248.5 	qualifies under this subdivision shall not be assessed a monthly participation fee under 
248.6 	subdivision 12 nor be subject to an estate claim under section 256B.15 for services 
248.7 	received under this section.
248.8 	(c) The commissioner shall require a certification of loan satisfaction or other 
248.9 	documentation that the person qualifies under this subdivision. 

248.10 	Sec. 21. Minnesota Statutes 2006, section 256B.0915, is amended to read:
248.11 	256B.0915 MEDICAID WAIVER FOR ELDERLY SERVICES.
248.12 		Subdivision 1.Authority. The commissioner is authorized to apply for a home 
248.13 	and community-based services waiver for the elderly, authorized under section 1915(c) 
248.14 	of the Social Security Act, in order to obtain federal financial participation to expand 
248.15 	the availability of services for persons who are eligible for medical assistance. The 
248.16 	commissioner may apply for additional waivers or pursue other federal financial 
248.17 	participation which is advantageous to the state for funding home care services for the 
248.18 	frail elderly who are eligible for medical assistance. The provision of waivered services 
248.19 	to elderly and disabled medical assistance recipients must comply with the criteria for 
248.20 	service definitions and provider standards approved in the waiver.
248.21 		Subd. 1a.Elderly waiver case management services. (a) Elderly case management 
248.22 	services under the home and community-based services waiver for elderly individuals are 
248.23 	available from providers meeting qualification requirements and the standards specified 
248.24 	in subdivision 1b. Eligible recipients may choose any qualified provider of elderly case 
248.25 	management services.
248.26 	Case management services assist individuals who receive waiver services in gaining 
248.27 	access to needed waiver and other state plan services, as well as needed medical, social, 
248.28 	educational, and other services regardless of the funding source for the services to which 
248.29 	access is gained.
248.30 	A case aide shall provide assistance to the case manager in carrying out 
248.31 	administrative activities of the case management function. The case aide may not assume 
248.32 	responsibilities that require professional judgment including assessments, reassessments, 
248.33 	and care plan development. The case manager is responsible for providing oversight of 
248.34 	the case aide.
249.1 	Case managers shall be responsible for ongoing monitoring of the provision of 
249.2 	services included in the individual's plan of care. Case managers shall initiate and oversee 
249.3 	the process of assessment and reassessment of the individual's care and review plan of 
249.4 	care at intervals specified in the federally approved waiver plan.
249.5 	(b) The county of service or tribe must provide access to and arrange for case 
249.6 	management services. County of service has the meaning given it in Minnesota Rules, 
249.7 	part 9505.0015, subpart 11.
249.8 		Subd. 1b.Provider qualifications and standards. The commissioner must 
249.9 	enroll qualified providers of elderly case management services under the home 
249.10 	and community-based waiver for the elderly under section 1915(c) of the Social 
249.11 	Security Act. The enrollment process shall ensure the provider's ability to meet the 
249.12 	qualification requirements and standards in this subdivision and other federal and state 
249.13 	requirements of this service. An elderly case management provider is an enrolled medical 
249.14 	assistance provider who is determined by the commissioner to have all of the following 
249.15 	characteristics:
249.16 	(1) the demonstrated capacity and experience to provide the components of 
249.17 	case management to coordinate and link community resources needed by the eligible 
249.18 	population;
249.19 	(2) administrative capacity and experience in serving the target population for 
249.20 	whom it will provide services and in ensuring quality of services under state and federal 
249.21 	requirements;
249.22 	(3) a financial management system that provides accurate documentation of services 
249.23 	and costs under state and federal requirements;
249.24 	(4) the capacity to document and maintain individual case records under state and 
249.25 	federal requirements; and
249.26 	(5) the countylead agency may allow a case manager employed by the countylead 
249.27 	agency to delegate certain aspects of the case management activity to another individual 
249.28 	employed by the countylead agency provided there is oversight of the individual by 
249.29 	the case manager. The case manager may not delegate those aspects which require 
249.30 	professional judgment including assessments, reassessments, and care plan development.
249.31 	Lead agencies include counties, health plans, and federally recognized tribes who 
249.32 	authorize services under this section.
249.33 		Subd. 1c.Case management activities under the state plan. The commissioner 
249.34 	shall seek an amendment to the home and community-based services waiver for the 
249.35 	elderly to implement the provisions of subdivisions 1a and 1b. If the commissioner 
249.36 	is unable to secure the approval of the secretary of health and human services for the 
250.1 	requested waiver amendment by December 31, 1993, the commissioner shall amend 
250.2 	the medical assistance state plan to provide that case management provided under the 
250.3 	home and community-based services waiver for the elderly is performed by counties 
250.4 	as an administrative function for the proper and effective administration of the state 
250.5 	medical assistance plan. The state shall reimburse counties for the nonfederal share of 
250.6 	costs for case management performed as an administrative function under the home and 
250.7 	community-based services waiver for the elderly.
250.8 		Subd. 1d.Posteligibility treatment of income and resources for elderly waiver.
 250.9 	Notwithstanding the provisions of section 256B.056, the commissioner shall make the 
250.10 	following amendment to the medical assistance elderly waiver program effective July 1, 
250.11 	1999, or upon federal approval, whichever is later. 
250.12 	A recipient's maintenance needs will be an amount equal to the Minnesota 
250.13 	supplemental aid equivalent rate as defined in section 256I.03, subdivision 5, plus the 
250.14 	medical assistance personal needs allowance as defined in section 256B.35, subdivision 
250.15 	1, paragraph (a), when applying posteligibility treatment of income rules to the gross 
250.16 	income of elderly waiver recipients, except for individuals whose income is in excess of 
250.17 	the special income standard according to Code of Federal Regulations, title 42, section 
250.18 	435.236. Recipient maintenance needs shall be adjusted under this provision each July 1. 
250.19 		Subd. 2.Spousal impoverishment policies. The commissioner shall seek to amend 
250.20 	the federal waiver and the medical assistance state plan to allowapply:
250.21 	(1) the spousal impoverishment criteria as authorized under United States Code, title 
250.22 	42, section 1396r-5, and as implemented in sections 256B.0575, 256B.058, and 256B.059, 
250.23 	except that the amendment shall seek to add to;
250.24 	(2)  the personal needs allowance permitted in section 256B.0575,; and
250.25 	(3) an amount equivalent to the group residential housing rate as set by section 
250.26 	256I.03, subdivision 5, and according to the approved federal waiver and medical 
250.27 	assistance state plan. 
250.28 		Subd. 3.Limits of cases. The number of medical assistance waiver recipients that 
250.29 	a countylead agency may serve must be allocated according to the number of medical 
250.30 	assistance waiver cases open on July 1 of each fiscal year. Additional recipients may be 
250.31 	served with the approval of the commissioner.
250.32 		Subd. 3a.Elderly waiver cost limits. (a) The monthly limit for the cost of waivered 
250.33 	services to an individual elderly waiver client shall be the weighted average monthly 
250.34 	nursing facility rate of the case mix resident class to which the elderly waiver client would 
250.35 	be assigned under Minnesota Rules, parts 9549.0050 to 9549.0059, less the recipient's 
250.36 	maintenance needs allowance as described in subdivision 1d, paragraph (a), until the first 
251.1 	day of the state fiscal year in which the resident assessment system as described in section 
251.2 	256B.437 for nursing home rate determination is implemented. Effective on the first day 
251.3 	of the state fiscal year in which the resident assessment system as described in section 
251.4 	256B.437 for nursing home rate determination is implemented and the first day of each 
251.5 	subsequent state fiscal year, the monthly limit for the cost of waivered services to an 
251.6 	individual elderly waiver client shall be the rate of the case mix resident class to which the 
251.7 	waiver client would be assigned under Minnesota Rules, parts 9549.0050 to 9549.0059, 
251.8 	in effect on the last day of the previous state fiscal year, adjusted by the greater of any 
251.9 	legislatively adopted home and community-based services percentage rate increase or the 
251.10 	average statewide percentage increase in nursing facility payment rates. 
251.11 	(b) If extended medical supplies and equipment or environmental modifications are 
251.12 	or will be purchased for an elderly waiver client, the costs may be prorated for up to 
251.13 	12 consecutive months beginning with the month of purchase. If the monthly cost of a 
251.14 	recipient's waivered services exceeds the monthly limit established in paragraph (a), the 
251.15 	annual cost of all waivered services shall be determined. In this event, the annual cost of 
251.16 	all waivered services shall not exceed 12 times the monthly limit of waivered services as 
251.17 	described in paragraph (a).
251.18 		Subd. 3b.Cost limits for elderly waiver applicants who reside in a nursing 
251.19 	facility. (a) For a person who is a nursing facility resident at the time of requesting a 
251.20 	determination of eligibility for elderly waivered services, a monthly conversion limit 
251.21 	for the cost of elderly waivered services may be requested. The monthly conversion 
251.22 	limit for the cost of elderly waiver services shall be the resident class assigned under 
251.23 	Minnesota Rules, parts 9549.0050 to 9549.0059, for that resident in the nursing facility 
251.24 	where the resident currently resides until July 1 of the state fiscal year in which the 
251.25 	resident assessment system as described in section 256B.437256B.438 for nursing home 
251.26 	rate determination is implemented. Effective on July 1 of the state fiscal year in which 
251.27 	the resident assessment system as described in section 256B.437256B.438 for nursing 
251.28 	home rate determination is implemented, the monthly conversion limit for the cost of 
251.29 	elderly waiver services shall be the per diem nursing facility rate as determined by the 
251.30 	resident assessment system as described in section 256B.437256B.438 for that resident in 
251.31 	the nursing facility where the resident currently resides multiplied by 365 and divided 
251.32 	by 12, less the recipient's maintenance needs allowance as described in subdivision 1d. 
251.33 	The initially approved conversion rate may be adjusted by the greater of any subsequent 
251.34 	legislatively adopted home and community-based services percentage rate increase or 
251.35 	the average statewide percentage increase in nursing facility payment rates. The limit 
251.36 	under this subdivision only applies to persons discharged from a nursing facility after a 
252.1 	minimum 30-day stay and found eligible for waivered services on or after July 1, 1997. 
252.2 	For conversions from the nursing home to the elderly waiver with consumer directed 
252.3 	community support services, the conversion rate limit is equal to the nursing facility rate 
252.4 	reduced by a percentage equal to the percentage difference between the consumer directed 
252.5 	services budget limit that would be assigned according to the federally approved waiver 
252.6 	plan and the corresponding community case mix cap, but not to exceed 50 percent.
252.7 	(b) The following costs must be included in determining the total monthly costs 
252.8 	for the waiver client:
252.9 	(1) cost of all waivered services, including extended medical supplies and equipment 
252.10 	and environmental modifications and adaptations; and
252.11 	(2) cost of skilled nursing, home health aide, and personal care services reimbursable 
252.12 	by medical assistance.
252.13 		Subd. 3c.Service approval and contracting provisions. (a) Medical assistance 
252.14 	funding for skilled nursing services, private duty nursing, home health aide, and personal 
252.15 	care services for waiver recipients must be approved by the case manager and included in 
252.16 	the individual care plan.
252.17 	(b) A countylead agency is not required to contract with a provider of supplies and 
252.18 	equipment if the monthly cost of the supplies and equipment is less than $250.
252.19 		Subd. 3d.Adult foster care rate. The adult foster care rate shall be considered 
252.20 	a difficulty of care payment and shall not include room and board. The adult foster 
252.21 	care service rate shall be negotiated between the countylead agency and the foster care 
252.22 	provider. The elderly waiver payment for the foster care service in combination with 
252.23 	the payment for all other elderly waiver services, including case management, must not 
252.24 	exceed the limit specified in subdivision 3a, paragraph (a).
252.25 		Subd. 3e.Assisted livingCustomized living service rate. (a) Payment for assisted 
252.26 	living servicecustomized living services shall be a monthly rate negotiated and authorized 
252.27 	by the county agency based on an individualized service plan for each resident and may 
252.28 	not cover direct rent or food costs. lead agency within the parameters established by 
252.29 	the commissioner. The payment agreement must delineate the services that have been 
252.30 	customized for each recipient and specify the amount of each service to be provided. The 
252.31 	lead agency shall ensure that there is a documented need for all services authorized. 
252.32 	Customized living services must not include rent or raw food costs. The negotiated 
252.33 	payment rate must be based on services to be provided. Negotiated rates must not exceed 
252.34 	payment rates for comparable elderly waiver or medical assistance services and must 
252.35 	reflect economies of scale.
253.1 	(b) The individualized monthly negotiated payment for assisted livingcustomized 
253.2 	living services as described in section 256B.0913, subdivisions 5d to 5f, and residential 
253.3 	care services as described in section 256B.0913, subdivision 5c, shall not exceed the 
253.4 	nonfederal share, in effect on July 1 of the state fiscal year for which the rate limit 
253.5 	is being calculated, of the greater of either the statewide or any of the geographic 
253.6 	groups' weighted average monthly nursing facility rate of the case mix resident class 
253.7 	to which the elderly waiver eligible client would be assigned under Minnesota Rules, 
253.8 	parts 9549.0050 to 9549.0059, less the maintenance needs allowance as described in 
253.9 	subdivision 1d, paragraph (a), until the July 1 of the state fiscal year in which the resident 
253.10 	assessment system as described in section 256B.437 for nursing home rate determination 
253.11 	is implemented. Effective on July 1 of the state fiscal year in which the resident 
253.12 	assessment system as described in section 256B.437 for nursing home rate determination 
253.13 	is implemented and July 1 of each subsequent state fiscal year, the individualized monthly 
253.14 	negotiated payment for the services described in this clause shall not exceed the limit 
253.15 	described in this clause which was in effect on June 30 of the previous state fiscal year 
253.16 	and which has been adjusted by the greater of any legislatively adopted home and 
253.17 	community-based services cost-of-living percentage increase or any legislatively adopted 
253.18 	statewide percent rate increase for nursing facilities. 
253.19 	(c) The individualized monthly negotiated payment for assisted Customized living 
253.20 	services described in section 144A.4605 and are delivered by a provider licensed by the 
253.21 	Department of Health as a class A or class F home care provider or an assisted living 
253.22 	home care provider and provided in a building that is registered as a housing with services 
253.23 	establishment under chapter 144D and that provides 24-hour supervision in combination 
253.24 	with the payment for other elderly waiver services, including case management, must not 
253.25 	exceed the limit specified in subdivision 3a. 
253.26 		Subd. 3f.Individual service rates; expenditure forecasts. (a) The countylead 
253.27 	agency shall negotiate individual service rates with vendors and may authorize payment 
253.28 	for actual costs up to the county'slead agency's current approved rate. Persons or agencies 
253.29 	must be employed by or under a contract with the countylead agency or the public health 
253.30 	nursing agency of the local board of health in order to receive funding under the elderly 
253.31 	waiver program, except as a provider of supplies and equipment when the monthly cost of 
253.32 	the supplies and equipment is less than $250.
253.33 	(b) Reimbursement for the medical assistance recipients under the approved waiver 
253.34 	shall be made from the medical assistance account through the invoice processing 
253.35 	procedures of the department's Medicaid Management Information System (MMIS), 
253.36 	only with the approval of the client's case manager. The budget for the state share of the 
254.1 	Medicaid expenditures shall be forecasted with the medical assistance budget, and shall 
254.2 	be consistent with the approved waiver.
254.3 		Subd. 3g.Service rate limits; state assumption of costs. (a) To improve access 
254.4 	to community services and eliminate payment disparities between the alternative care 
254.5 	program and the elderly waiver, the commissioner shall establish statewide maximum 
254.6 	service rate limits and eliminate county-specificlead agency-specific service rate limits.
254.7 	(b) Effective July 1, 2001, for service rate limits, except those described or defined in 
254.8 	subdivisions 3d and 3e, the rate limit for each service shall be the greater of the alternative 
254.9 	care statewide maximum rate or the elderly waiver statewide maximum rate.
254.10 	(c) CountiesLead agencies may negotiate individual service rates with vendors for 
254.11 	actual costs up to the statewide maximum service rate limit.
254.12 		Subd. 3h.Service rate limits; 24-hour customized living services. The payment 
254.13 	rates for 24-hour customized living services is a monthly rate negotiated and authorized by 
254.14 	the lead agency within the parameters established by the commissioner of human services. 
254.15 	The payment agreement must delineate the services that have been customized for each 
254.16 	recipient and specify the amount of each service to be provided. The lead agency shall 
254.17 	ensure that there is a documented need for all services authorized. The lead agency shall 
254.18 	not authorize 24-hour customized living services unless there is a documented need for 
254.19 	24-hour supervision. For purposes of this section, "24-hour supervision" means that the 
254.20 	recipient requires assistance due to needs related to one or more of the following:
254.21 	(1) intermittent assistance with toileting or transferring;
254.22 	(2) cognitive or behavioral issues;
254.23 	(3) a medical condition that requires clinical monitoring; or
254.24 	(4) other conditions or needs as defined by the commissioner of human services. 
254.25 	The lead agency shall ensure that the frequency and mode of supervision of the recipient 
254.26 	and the qualifications of staff providing supervision are described and meet the needs 
254.27 	of the recipient. Customized living services must not include rent or raw food costs. 
254.28 	The negotiated payment rate for 24-hour customized living services must be based on 
254.29 	services to be provided. Negotiated rates must not exceed payment rates for comparable 
254.30 	elderly waiver or medical assistance services and must reflect economies of scale. The 
254.31 	individually negotiated 24-hour customized living payments, in combination with the 
254.32 	payment for other elderly waiver services, including case management, must not exceed 
254.33 	the recipient's community budget cap specified in subdivision 3a.
254.34 		Subd. 4.Termination notice. The case manager must give the individual a ten-day 
254.35 	written notice of any denial, reduction, or termination of waivered services.
255.1 		Subd. 5.Assessments and reassessments for waiver clients. Each client shall 
255.2 	receive an initial assessment of strengths, informal supports, and need for services in 
255.3 	accordance with section 256B.0911, subdivisions 3, 3a, and 3b. A reassessment of a 
255.4 	client served under the elderly waiver must be conducted at least every 12 months and 
255.5 	at other times when the case manager determines that there has been significant change 
255.6 	in the client's functioning. This may include instances where the client is discharged 
255.7 	from the hospital. 
255.8 		Subd. 6.Implementation of care plan. Each elderly waiver client shall be provided 
255.9 	a copy of a written care plan that meets the requirements outlined in section 256B.0913, 
255.10 	subdivision 8. The care plan must be implemented by the county administering waivered 
255.11 	servicesof service when it is different than the county of financial responsibility. The 
255.12 	county of service administering waivered services must notify the county of financial 
255.13 	responsibility of the approved care plan.
255.14 		Subd. 7.Prepaid elderly waiver services. An individual for whom a prepaid health 
255.15 	plan is liable for nursing home services or elderly waiver services according to section 
255.16 	256B.69, subdivision 6a, is not eligible to also receive county-administered elderly waiver 
255.17 	services under this section. 
255.18 		Subd. 8.Services and supports. (a) Services and supports shall meet the 
255.19 	requirements set out in United States Code, title 42, section 1396n.
255.20 	(b) Services and supports shall promote consumer choice and be arranged and 
255.21 	provided consistent with individualized, written care plans.
255.22 	(c) The state of Minnesota, county, managed care organization, or tribal government 
255.23 	under contract to administer the elderly waiver shall not be liable for damages, injuries, 
255.24 	or liabilities sustained through the purchase of direct supports or goods by the person, 
255.25 	the person's family, or the authorized representatives with funds received through 
255.26 	consumer-directed community support services under the federally approved waiver plan. 
255.27 	Liabilities include, but are not limited to, workers' compensation liability, the Federal 
255.28 	Insurance Contributions Act (FICA), or the Federal Unemployment Tax Act (FUTA).
255.29 		Subd. 9.Tribal management of elderly waiver. Notwithstanding contrary 
255.30 	provisions of this section, or those in other state laws or rules, the commissioner may 
255.31 	develop a model for tribal management of the elderly waiver program and implement this 
255.32 	model through a contract between the state and any of the state's federally recognized tribal 
255.33 	governments. The model shall include the provision of tribal waiver case management, 
255.34 	assessment for personal care assistance, and administrative requirements otherwise carried 
255.35 	out by countieslead agencies but shall not include tribal financial eligibility determination 
255.36 	for medical assistance.

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

256.2 	Sec. 22. Minnesota Statutes 2006, section 256B.095, is amended to read:
256.3 	256B.095 QUALITY ASSURANCE SYSTEM ESTABLISHED.
256.4 	(a) Effective July 1, 1998, a quality assurance system for persons with developmental 
256.5 	disabilities, which includes an alternative quality assurance licensing system for programs, 
256.6 	is established in Dodge, Fillmore, Freeborn, Goodhue, Houston, Mower, Olmsted, Rice, 
256.7 	Steele, Wabasha, and Winona Counties for the purpose of improving the quality of 
256.8 	services provided to persons with developmental disabilities. A county, at its option, may 
256.9 	choose to have all programs for persons with developmental disabilities located within 
256.10 	the county licensed under chapter 245A using standards determined under the alternative 
256.11 	quality assurance licensing system or may continue regulation of these programs under 
256.12 	the licensing system operated by the commissioner. The project expires on June 30, 
256.13 	20092014.
256.14 	(b) Effective July 1, 2003, a county not listed in paragraph (a) may apply to 
256.15 	participate in the quality assurance system established under paragraph (a). The 
256.16 	commission established under section 256B.0951 may, at its option, allow additional 
256.17 	counties to participate in the system.
256.18 	(c) Effective July 1, 2003, any county or group of counties not listed in paragraph (a) 
256.19 	may establish a quality assurance system under this section. A new system established 
256.20 	under this section shall have the same rights and duties as the system established 
256.21 	under paragraph (a). A new system shall be governed by a commission under section 
256.22 	256B.0951. The commissioner shall appoint the initial commission members based 
256.23 	on recommendations from advocates, families, service providers, and counties in the 
256.24 	geographic area included in the new system. Counties that choose to participate in a 
256.25 	new system shall have the duties assigned under section 256B.0952. The new system 
256.26 	shall establish a quality assurance process under section 256B.0953. The provisions of 
256.27 	section 256B.0954 shall apply to a new system established under this paragraph. The 
256.28 	commissioner shall delegate authority to a new system established under this paragraph 
256.29 	according to section 256B.0955.
256.30 	(d) Effective July 1, 2007, the quality assurance system may be expanded to include 
256.31 	programs for persons with disabilities and older adults.

256.32 	Sec. 23. Minnesota Statutes 2006, section 256B.0951, subdivision 1, is amended to 
256.33 	read:
257.1 		Subdivision 1.Membership. The Quality Assurance Commission is established. 
257.2 	The commission consists of at least 14 but not more than 21 members as follows: at 
257.3 	least three but not more than five members representing advocacy organizations; at 
257.4 	least three but not more than five members representing consumers, families, and their 
257.5 	legal representatives; at least three but not more than five members representing service 
257.6 	providers; at least three but not more than five members representing counties; and the 
257.7 	commissioner of human services or the commissioner's designee. The first commission 
257.8 	shall establish membership guidelines for the transition and recruitment of membership for 
257.9 	the commission's ongoing existence. Members of the commission who do not receive a 
257.10 	salary or wages from an employer for time spent on commission duties may receive a per 
257.11 	diem payment when performing commission duties and functions. All members may be 
257.12 	reimbursed for expenses related to commission activities. Notwithstanding the provisions 
257.13 	of section 15.059, subdivision 5, the commission expires on June 30, 20092014.

257.14 	Sec. 24. [256B.096] QUALITY MANAGEMENT, ASSURANCE, AND 
257.15 	IMPROVEMENT SYSTEM FOR MINNESOTANS RECEIVING DISABILITY 
257.16 	SERVICES.
257.17 		Subdivision 1.Scope. In order to improve the quality of services provided to 
257.18 	Minnesotans with disabilities and to meet the requirements of the federally approved home 
257.19 	and community-based waivers under section 1915c of the Social Security Act, a statewide 
257.20 	quality assurance and improvement system for Minnesotans receiving disability services 
257.21 	shall be developed. The disability services included are the home and community-based 
257.22 	services waiver programs for persons with developmental disabilities under section 
257.23 	256B.092, subdivision 4, and for persons with disabilities under section 256B.49.
257.24 		Subd. 2.Stakeholder advisory group. The commissioner shall consult with a 
257.25 	stakeholder advisory group on the development and implementation of the state quality 
257.26 	management, assurance, and improvement system, including representatives of disability 
257.27 	service recipients, disability service providers, disability advocacy groups, county human 
257.28 	service agencies, and state agency staff from the Departments of Human Services and 
257.29 	Health, and the ombudsman for mental health and developmental disabilities on the 
257.30 	development of a statewide quality assurance and improvement system.
257.31 		Subd. 3.Annual survey of service recipients. The commissioner, in consultation 
257.32 	with the stakeholder advisory group, shall develop  an annual independent random 
257.33 	statewide survey of between five and ten percent of service recipients to determine the 
257.34 	effectiveness and quality of disability services. The survey shall be consistent with the 
257.35 	system performance expectations of the Centers for Medicare and Medicaid Services 
258.1 	quality management requirements and framework. The survey shall analyze whether 
258.2 	desired outcomes have been achieved for persons with different demographic, diagnostic, 
258.3 	health, and functional needs receiving different types of services, in different settings, 
258.4 	with different costs. The survey shall be field tested during 2008. The biennial report 
258.5 	established in subdivision 5 shall include recommendations on statewide and regional 
258.6 	reports of the survey results that, if published, would be useful to regions, counties, and 
258.7 	providers to plan and measure the impact of quality improvement activities.
258.8 		Subd. 4.Improvements for incident reporting, investigation, analysis, and 
258.9 	follow-up.  In consultation with the stakeholder advisory group, the commissioner shall 
258.10 	identify the information, data sources, and technology needed to improve the system 
258.11 	of incident reporting, including:
258.12 	(1) reports made under the Maltreatment of Minors and Vulnerable Adults Acts; and 
258.13 	(2) investigation, analysis, and follow-up for disability services.
258.14 	The commissioner must ensure that the federal home and community-based waiver 
258.15 	requirements are met and that incidents that may have jeopardized safety and health or 
258.16 	violated service-related assurances, civil and human rights, and other protections designed 
258.17 	to prevent abuse, neglect, and exploitation, are reviewed, investigated, and acted upon 
258.18 	in a timely manner.
258.19 		Subd. 5.Biennial report. The commissioner shall provide a biennial report to the 
258.20 	chairs of the legislative committees with jurisdiction over health and human services 
258.21 	policy and funding beginning January 15, 2009, on the development and activities of the 
258.22 	quality management, assurance, and improvement system designed to meet the federal 
258.23 	requirements under the home and community-based services waiver programs for persons 
258.24 	with disabilities. By January 15, 2008, the commissioner shall provide a preliminary 
258.25 	report on priorities for meeting the federal requirements, progress on development and 
258.26 	field testing of the annual survey, appropriations necessary to implement an annual survey 
258.27 	of service recipients once field testing is completed, recommendations for improvements 
258.28 	in the incident reporting system, and a plan for incorporating quality assurance efforts 
258.29 	under section 256B.095 and other regional efforts into the statewide system.

258.30 	Sec. 25. Minnesota Statutes 2006, section 256B.15, is amended by adding a 
258.31 	subdivision to read:
258.32 		Subd. 9.Recovery of alternative care and certain reverse mortgages. The state 
258.33 	and a county agency shall not recover alternative care paid for a person under section 
258.34 	256B.0913, subdivision 17, under this section.

259.1 	Sec. 26. Minnesota Statutes 2006, section 256B.431, subdivision 2e, is amended to 
259.2 	read:
259.3 		Subd. 2e.Contracts for services for ventilator-dependent persons. (a) 
259.4 	The commissioner may negotiate with a nursing facility eligible to receive medical 
259.5 	assistance payments to provide services to a ventilator-dependent person identified by the 
259.6 	commissioner according to criteria developed by the commissioner, including:
259.7 	(1) nursing facility care has been recommended for the person by a preadmission 
259.8 	screening team;
259.9 	(2) the person has been hospitalized and no longer requires inpatient acute care 
259.10 	hospital services; and
259.11 	(3) the commissioner has determined that necessary services for the person cannot 
259.12 	be provided under existing nursing facility rates.
259.13 	The commissioner may negotiate an adjustment to the operating cost payment 
259.14 	rate for a nursing facility with a resident who is ventilator-dependent, for that resident. 
259.15 	The negotiated adjustment must reflect only the actual additional cost of meeting the 
259.16 	specialized care needs of a ventilator-dependent person identified by the commissioner 
259.17 	for whom necessary services cannot be provided under existing nursing facility rates and 
259.18 	which are not otherwise covered under Minnesota Rules, parts 9549.0010 to 9549.0080 or 
259.19 	9505.0170 to 9505.0475. For persons who are initially admitted to a nursing facility before 
259.20 	July 1, 2001, and have their payment rate under this subdivision negotiated after July 1, 
259.21 	2001, the negotiated payment rate must not exceed 200 percent of the highest multiple 
259.22 	bedroom payment rate for the facility, as initially established by the commissioner for the 
259.23 	rate year for case mix classification K; or, upon implementation of the RUG's-based case 
259.24 	mix system, 200 percent of the highest RUG's rate. For persons initially admitted to a 
259.25 	nursing facility on or after July 1, 2001, the negotiated payment rate must not exceed 300 
259.26 	percent of the facility's multiple bedroom payment rate for case mix classification K; or, 
259.27 	upon implementation of the RUG's-based case mix system, 300 percent of the highest 
259.28 	RUG's rate. The negotiated adjustment shall not affect the payment rate charged to private 
259.29 	paying residents under the provisions of section   256B.48, subdivision 1. 
259.30 	(b) Effective July 1, 2007, or upon opening a unit of at least ten beds dedicated to 
259.31 	care of ventilator-dependent persons in partnership with Mayo Health Systems, whichever 
259.32 	is later, the operating payment rates for residents determined eligible under paragraph (a) 
259.33 	of a nursing facility in Waseca County that on February 1, 2007, was licensed for 70 beds 
259.34 	and reimbursed under this section, section 256B.434, or section 256B.441, shall be 300 
259.35 	percent of the facility's highest RUG rate.

260.1 	Sec. 27. Minnesota Statutes 2006, section 256B.431, subdivision 17a, is amended to 
260.2 	read:
260.3 		Subd. 17a.Allowable interest expense. (a) Notwithstanding Minnesota Rules, part 
260.4 	9549.0060, subparts 5, item A, subitems (1) and (3), and 7, item D, allowable interest 
260.5 	expense on debt shall include:
260.6 	(1) interest expense on debt related to the cost of purchasing or replacing depreciable 
260.7 	equipment, excluding vehicles, not to exceed six ten percent of the total historical cost 
260.8 	of the project; and
260.9 	(2) interest expense on debt related to financing or refinancing costs, including costs 
260.10 	related to points, loan origination fees, financing charges, legal fees, and title searches; and 
260.11 	issuance costs including bond discounts, bond counsel, underwriter's counsel, corporate 
260.12 	counsel, printing, and financial forecasts. Allowable debt related to items in this clause 
260.13 	shall not exceed seven percent of the total historical cost of the project. To the extent 
260.14 	these costs are financed, the straight-line amortization of the costs in this clause is not an 
260.15 	allowable cost; and
260.16 	(3) interest on debt incurred for the establishment of a debt reserve fund, net of the 
260.17 	interest earned on the debt reserve fund.
260.18 	(b) Debt incurred for costs under paragraph (a) is not subject to Minnesota Rules, 
260.19 	part 9549.0060, subpart 5, item A, subitem (5) or (6).

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

260.21 	Sec. 28. Minnesota Statutes 2006, section 256B.434, subdivision 4, is amended to read:
260.22 		Subd. 4.Alternate rates for nursing facilities. (a) For nursing facilities which 
260.23 	have their payment rates determined under this section rather than section 256B.431, the 
260.24 	commissioner shall establish a rate under this subdivision. The nursing facility must enter 
260.25 	into a written contract with the commissioner.
260.26 	(b) A nursing facility's case mix payment rate for the first rate year of a facility's 
260.27 	contract under this section is the payment rate the facility would have received under 
260.28 	section 256B.431.
260.29 	(c) A nursing facility's case mix payment rates for the second and subsequent years 
260.30 	of a facility's contract under this section are the previous rate year's contract payment 
260.31 	rates plus an inflation adjustment and, for facilities reimbursed under this section or 
260.32 	section 256B.431, an adjustment to include the cost of any increase in Health Department 
260.33 	licensing fees for the facility taking effect on or after July 1, 2001. The index for the 
260.34 	inflation adjustment must be based on the change in the Consumer Price Index-All Items 
260.35 	(United States City average) (CPI-U) forecasted by the commissioner of finance's national 
261.1 	economic consultant, as forecasted in the fourth quarter of the calendar year preceding 
261.2 	the rate year. The inflation adjustment must be based on the 12-month period from the 
261.3 	midpoint of the previous rate year to the midpoint of the rate year for which the rate 
261.4 	is being determined. For the rate years beginning on July 1, 1999, July 1, 2000, July 
261.5 	1, 2001, July 1, 2002, July 1, 2003, July 1, 2004, July 1, 2005, July 1, 2006, July 1, 
261.6 	2007, and July 1, 2008, July 1, 2009, and July 1, 2010, this paragraph shall apply only 
261.7 	to the property-related payment rate, except that adjustments to include the cost of any 
261.8 	increase in Health Department licensing fees taking effect on or after July 1, 2001, shall 
261.9 	be provided. Beginning in 2005, adjustment to the property payment rate under this 
261.10 	section and section 256B.431 shall be effective on October 1. In determining the amount 
261.11 	of the property-related payment rate adjustment under this paragraph, the commissioner 
261.12 	shall determine the proportion of the facility's rates that are property-related based on the 
261.13 	facility's most recent cost report. 
261.14 	(d) The commissioner shall develop additional incentive-based payments of up to 
261.15 	five percent above a facility's operating payment rate for achieving outcomes specified 
261.16 	in a contract. The commissioner may solicit contract amendments and implement those 
261.17 	which, on a competitive basis, best meet the state's policy objectives. The commissioner 
261.18 	shall limit the amount of any incentive payment and the number of contract amendments 
261.19 	under this paragraph to operate the incentive payments within funds appropriated for this 
261.20 	purpose. The contract amendments may specify various levels of payment for various 
261.21 	levels of performance. Incentive payments to facilities under this paragraph may be in the 
261.22 	form of time-limited rate adjustments or onetime supplemental payments. In establishing 
261.23 	the specified outcomes and related criteria, the commissioner shall consider the following 
261.24 	state policy objectives:
261.25 	(1) successful diversion or discharge of residents to the residents' prior home or other 
261.26 	community-based alternatives;
261.27 	(2) adoption of new technology to improve quality or efficiency; 
261.28 	(3) improved quality as measured in the Nursing Home Report Card; 
261.29 	(4) reduced acute care costs; and
261.30 	(5) any additional outcomes proposed by a nursing facility that the commissioner 
261.31 	finds desirable.
261.32 	(e) Notwithstanding the threshold in section 256B.431, subdivision 16, facilities that 
261.33 	take action to come into compliance with existing or pending requirements of the life 
261.34 	safety code provisions or federal regulations governing sprinkler systems must receive 
261.35 	reimbursement for the costs associated with compliance if all of the following conditions 
261.36 	are met:
262.1 	(1) the expenses associated with compliance occurred on or after January 1, 2005, 
262.2 	and before December 31, 2008;
262.3 	(2) the costs were not otherwise reimbursed under subdivision 4f or section 
262.4 	144A.071 or 144A.073; and
262.5 	(3) the total allowable costs reported under this paragraph are  less than the minimum 
262.6 	threshold established under section 256B.431, subdivision 15, paragraph (e), and 
262.7 	subdivision 16.
262.8 	The commissioner shall use money appropriated for this purpose to provide to qualifying 
262.9 	nursing facilities a rate adjustment beginning October 1, 2007, and ending September 30, 
262.10 	2008. Nursing facilities that have spent money or anticipate the need to spend money 
262.11 	to satisfy the most recent life safety code requirements by (1) installing a sprinkler 
262.12 	system or (2) replacing all or portions of an existing sprinkler system may submit to the 
262.13 	commissioner by June 30, 2007, on a form provided by the commissioner the actual 
262.14 	costs of a completed project or the estimated costs, based on a project bid, of a planned 
262.15 	project. The commissioner shall calculate a rate adjustment equal to the allowable 
262.16 	costs of the project divided by the resident days reported for the report year ending 
262.17 	September 30, 2006. If the costs from all projects exceed the appropriation for this 
262.18 	purpose, the commissioner shall allocate the money appropriated on a pro rata basis to the 
262.19 	qualifying facilities by reducing the rate adjustment determined for each facility by an 
262.20 	equal percentage. Facilities that used estimated costs when requesting the rate adjustment 
262.21 	shall report to the commissioner by January 31, 2009, on the use of this money on a 
262.22 	form provided by the commissioner. If the nursing facility fails to provide the report, the 
262.23 	commissioner shall recoup the money paid to the facility for this purpose. If the facility 
262.24 	reports expenditures allowable under this subdivision that are less than the amount received 
262.25 	in the facility's annualized rate adjustment, the commissioner shall recoup the difference.

262.26 	Sec. 29. Minnesota Statutes 2006, section 256B.434, is amended by adding a 
262.27 	subdivision to read:
262.28 		Subd. 4j.Rate increase for facilities in Chisago County. Effective October 1, 
262.29 	2007, to September 30, 2008, operating payment rates of all nursing facilities in Chisago 
262.30 	County that are reimbursed under this section or section 256B.441 shall be increased to be 
262.31 	equal, for a RUG's rate with a weight of 1.00, to the geographic group III median rate for 
262.32 	the same RUG's weight. The percentage of the operating payment rate for each facility 
262.33 	to be case-mix adjusted shall be equal to the percentage that is case-mix adjusted in that 
262.34 	facility's September 30, 2007, operating payment rate. This subdivision applies only if it 
263.1 	results in a rate increase. Increases provided by this subdivision shall be added to the rate 
263.2 	determined under any new reimbursement system established under section 256B.441.

263.3 	Sec. 30. Minnesota Statutes 2006, section 256B.434, is amended by adding a 
263.4 	subdivision to read:
263.5 		Subd. 19.Nursing facility rate increases beginning October 1, 2007.  (a) For the 
263.6 	rate year beginning October 1, 2007, the commissioner shall make available to each 
263.7 	nursing facility reimbursed under this section operating payment rate adjustments equal to 
263.8 	2.87 percent of the operating payment rates in effect on September 30, 2007.
263.9 	(b) Seventy-five percent of the money resulting from the rate adjustment under 
263.10 	paragraph (a) must be used for increases in compensation-related costs for employees 
263.11 	directly employed by the nursing facility on or after the effective date of the rate 
263.12 	adjustment, except:
263.13 	(1) the administrator;
263.14 	(2) persons employed in the central office of a corporation that has an ownership 
263.15 	interest in the nursing facility or exercises control over the nursing facility; and 
263.16 	(3) persons paid by the nursing facility under a management contract.
263.17 	(c) Two-thirds of the money available under paragraph (b) must be used for wage 
263.18 	increases for all employees directly employed by the nursing facility on or after the 
263.19 	effective date of the rate adjustment, except those listed in paragraph (b), clauses (1) to (3). 
263.20 	The wage adjustment that employees receive under this paragraph must be paid as an equal 
263.21 	hourly percentage wage increase for all eligible employees. Only costs associated with 
263.22 	the portion of the equal hourly percentage wage increase that goes to all employees shall 
263.23 	qualify under this paragraph. Costs associated with wage increases in excess of the amount 
263.24 	of the equal hourly percentage wage increase provided to all employees shall be allowed 
263.25 	only for meeting the requirements in paragraph (b). This paragraph shall not apply to:
263.26 	(1) employees eligible for a Taft-Hartley insurance plan established under United 
263.27 	States Code, title 29, section 186(c)(5); or 
263.28 	(2) public employees.
263.29 	(d) The commissioner shall allow as compensation-related costs all costs for:
263.30 	(1) wages and salaries;
263.31 	(2) FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers' 
263.32 	compensation;
263.33 	(3) the employer's share of health and dental insurance, life insurance, disability 
263.34 	insurance, long-term care insurance, uniform allowance, and pensions; and
263.35 	(4) other benefits provided, subject to the approval of the commissioner.
264.1 	(e) The portion of the rate adjustment under paragraph (a) that is not subject to the 
264.2 	requirements in paragraphs (b) and (c) shall be provided to nursing facilities effective 
264.3 	October 1, 2007.
264.4 	(f) Nursing facilities may apply for the portion of the rate adjustment under 
264.5 	paragraph (a) that is subject to the requirements in paragraphs (b) and (c). The application 
264.6 	must be submitted to the commissioner within six months of the effective date of the 
264.7 	rate adjustment, and the nursing facility must provide additional information required 
264.8 	by the commissioner within nine months of the effective date of the rate adjustment. 
264.9 	The commissioner must respond to all applications within three weeks of receipt. 
264.10 	The commissioner may waive the deadlines in this paragraph under extraordinary 
264.11 	circumstances, to be determined at the sole discretion of the commissioner. The 
264.12 	application must contain:
264.13 	(1) an estimate of the amounts of money that must be used as specified in paragraphs 
264.14 	(b) and (c);
264.15 	(2) a detailed distribution plan specifying the allowable compensation-related and 
264.16 	wage increases the nursing facility will implement to use the funds available in clause (1);
264.17 	(3) a description of how the nursing facility will notify eligible employees of 
264.18 	the contents of the approved application, which must provide for giving each eligible 
264.19 	employee a copy of the approved application, excluding the information required in clause 
264.20 	(1), or posting a copy of the approved application, excluding the information required in 
264.21 	clause (1), for a period of at least six weeks in an area of the nursing facility to which all 
264.22 	eligible employees have access; and
264.23 	(4) instructions for employees who believe they have not received the 
264.24 	compensation-related or wage increases specified in clause (2), as approved by the 
264.25 	commissioner, and which must include a mailing address, e-mail address, and the 
264.26 	telephone number that may be used by the employee to contact the commissioner or the 
264.27 	commissioner's representative.
264.28 	(g) The commissioner shall ensure that cost increases in distribution plans under 
264.29 	paragraph (f), clause (2), that may be included in approved applications, comply with the 
264.30 	following requirements:
264.31 	(1) costs to be incurred during the applicable rate year resulting from wage and salary 
264.32 	increases effective prior to the first day of the nursing facility's payroll period that includes 
264.33 	October 1, 2007, shall be allowed if they were not used in a prior year's application;
264.34 	(2) a portion of the costs resulting from tenure-related wage or salary increases 
264.35 	may be considered to be allowable wage increases, according to formulas that the 
265.1 	commissioner shall provide, where employee retention is above the average statewide 
265.2 	rate of retention of direct care employees;
265.3 	(3) the annualized amount of increases in costs for the employer's share of health 
265.4 	and dental insurance, life insurance, disability insurance, and workers' compensation 
265.5 	shall be allowable compensation-related increases if they are effective on or after April 
265.6 	1, 2007, and prior to April 1, 2008; and 
265.7 	(4) for nursing facilities in which employees are represented by an exclusive 
265.8 	bargaining representative, the commissioner shall approve the application only upon 
265.9 	receipt of a letter of acceptance of the distribution plan, in regard to members of the 
265.10 	bargaining unit, signed by the exclusive bargaining agent and dated after enactment of 
265.11 	this subdivision. Upon receipt of the letter of acceptance, the commissioner shall deem 
265.12 	all requirements of this section as having been met in regard to the members of the 
265.13 	bargaining unit.
265.14 	(h) The commissioner shall review applications received under paragraph (f) and 
265.15 	shall provide the portion of the rate adjustment under paragraphs (b) and (c) if the 
265.16 	requirements of this subdivision have been met. The rate adjustment shall be effective 
265.17 	October 1. Notwithstanding paragraph (a), if the approved application distributes less 
265.18 	money than is available, the amount of the rate adjustment shall be reduced so that the 
265.19 	amount of money made available is equal to the amount to be distributed.

265.20 	Sec. 31. Minnesota Statutes 2006, section 256B.434, is amended by adding a 
265.21 	subdivision to read:
265.22 		Subd. 20.Payment of Public Employees Retirement Association costs. Nursing 
265.23 	facilities that participate in the Public Employees Retirement Association (PERA) shall 
265.24 	have the component of their payment rate associated with the costs of PERA determined 
265.25 	for each rate year. Effective for rate years beginning on and after October 1, 2007, the 
265.26 	commissioner shall determine the portion of the payment rate in effect on September 30 
265.27 	each year and shall subtract that amount from the payment rate to be effective on the 
265.28 	following October 1. The portion that shall be deemed to be included in the September 30, 
265.29 	2007, rate that is associated with PERA costs shall be the allowed costs in the facility's 
265.30 	base for determining rates under this section, divided by the resident days reported for that 
265.31 	year. The commissioner shall add to the payment rate to be effective on October 1 each 
265.32 	year an amount equal to the reported costs associated with PERA, for the year ended on 
265.33 	the most recent September 30 for which data is available, divided by total resident days 
265.34 	for that year, as reported by the facility and audited under section 256B.441.

266.1 	Sec. 32. Minnesota Statutes 2006, section 256B.437, is amended by adding a 
266.2 	subdivision to read:
266.3 		Subd. 10.Big Stone County rate adjustment.  Notwithstanding the  requirements 
266.4 	of this section, the commissioner shall approve a planned closure rate adjustment in Big 
266.5 	Stone County for an eight-bed facility in Clinton for reassignment to a 50-bed facility in 
266.6 	Graceville. The adjustment shall be calculated according to subdivisions 3 and 6.

266.7 	Sec. 33. Minnesota Statutes 2006, section 256B.441, subdivision 1, is amended to read:
266.8 		Subdivision 1.Rate determination Rebasing of nursing facility operating cost 
266.9 	payment rates. (a) The commissioner shall establish a value-based nursing facility 
266.10 	reimbursement system which will provide facility-specific, prospective rates for nursing 
266.11 	facilities participating in the medical assistance program. The rates shall be determined 
266.12 	using an annual statistical and cost report filed by each nursing facility. The total payment 
266.13 	rate shall be composed of four rate components: direct care services, support services, 
266.14 	external fixed, and property-related rate components. The payment rate shall be derived 
266.15 	from statistical measures of actual costs incurred in facility operation of nursing facilities. 
266.16 	From this cost basis, the components of the total payment rate shall be adjusted for quality 
266.17 	of services provided, recognition of staffing levels, geographic variation in labor costs, and 
266.18 	resident acuity. The commissioner shall rebase nursing facility operating cost payment 
266.19 	rates to align payments to facilities with the cost of providing care. The rebased operating 
266.20 	cost payment rates shall be calculated using the statistical and cost report filed by each 
266.21 	nursing facility for the report period ending one year prior to the rate year.
266.22 	(b) Rates shall be rebased annually. The new operating cost payment rates based on 
266.23 	this section shall take effect beginning with the rate year beginning October 1, 2008, and 
266.24 	shall be phased in over five rate years through October 1, 2012.
266.25 	(c) Operating cost payment rates shall be rebased on October 1, 2013, and every 
266.26 	two years after that date.
266.27 	(d) Each cost reporting year shall begin on October 1 and end on the following 
266.28 	September 30. Beginning in 2006, a statistical and cost report shall be filed by each 
266.29 	nursing facility by January 15. Notice of rates shall be distributed by August 15 and the 
266.30 	rates shall go into effect on October 1 for one year.
266.31 	(c) The commissioner shall begin to phase in the new reimbursement system 
266.32 	beginning October 1, 2007. Full phase-in shall be completed by October 1, 2011.
266.33 	(e) Effective October 1, 2011, property rates shall be rebased in accordance with 
266.34 	section 256B.431 and Minnesota Rules, chapter 9549. The commissioner shall determine 
266.35 	what the property payment rate for a nursing facility would be had the facility not had its 
267.1 	property rate determined under section 256B.434. The commissioner shall allow nursing 
267.2 	facilities to provide information affecting this rate determination that would have been 
267.3 	filed annually under Minnesota Rules, chapter 9549, and nursing facilities shall report 
267.4 	information necessary to determine allowable debt. The commissioner shall use this 
267.5 	information to determine the property payment rate.

267.6 	Sec. 34. Minnesota Statutes 2006, section 256B.441, subdivision 2, is amended to read:
267.7 		Subd. 2.Definitions. For purposes of this section, the terms in subdivisions 3 to 
267.8 	42 42a  have the meanings given unless otherwise provided for in this section.

267.9 	Sec. 35. Minnesota Statutes 2006, section 256B.441, subdivision 5, is amended to read:
267.10 		Subd. 5.Administrative costs. "Administrative costs" means the direct costs for 
267.11 	administering the overall activities of the nursing home. These costs include salaries and 
267.12 	wages of the administrator, assistant administrator, business office employees, security 
267.13 	guards, and associated fringe benefits and payroll taxes, fees, contracts, or purchases 
267.14 	related to business office functions, licenses, and permits except as provided in the 
267.15 	external fixed costs category, employee recognition, travel including meals and lodging, 
267.16 	training, voice and data communication or transmission, office supplies, liability insurance 
267.17 	and other forms of insurance not designated to other areas, personnel recruitment, legal 
267.18 	services, accounting services, management or business consultants, data processing, 
267.19 	information technology, Web site, central or home office costs, business meetings and 
267.20 	seminars, postage, fees for professional organizations, subscriptions, security services, 
267.21 	advertising, board of director's fees, working capital interest expense, and bad debts and 
267.22 	bad debt collection fees.

267.23 	Sec. 36. Minnesota Statutes 2006, section 256B.441, subdivision 6, is amended to read:
267.24 		Subd. 6.Allowed costs. "Allowed costs" means the amounts reported by the 
267.25 	facility which are necessary for the operation of the facility and the care of residents 
267.26 	and which are reviewed by the department for accuracy, reasonableness, in accordance 
267.27 	with the requirements set forth in Title XVIII of the federal Social Security Act and the 
267.28 	interpretations in the provider reimbursement manual, and compliance with this section 
267.29 	and generally accepted accounting principles. All references to costs in this section shall 
267.30 	be assumed to refer to allowed costs.

267.31 	Sec. 37. Minnesota Statutes 2006, section 256B.441, subdivision 10, is amended to 
267.32 	read:
268.1 		Subd. 10.Dietary costs. "Dietary costs" means the costs for the salaries and wages 
268.2 	of the dietary supervisor, dietitians, chefs, cooks, dishwashers, and other employees 
268.3 	assigned to the kitchen and dining room, and associated fringe benefits and payroll 
268.4 	taxes. Dietary costs also includes the salaries or fees of dietary consultants, direct costs 
268.5 	of raw food (both normal and special diet food), dietary supplies, and food preparation 
268.6 	and serving. Also included are special dietary supplements used for tube feeding or oral 
268.7 	feeding, such as elemental high nitrogen diet, even if written as a prescription item by a 
268.8 	physician.

268.9 	Sec. 38. Minnesota Statutes 2006, section 256B.441, subdivision 11, is amended to 
268.10 	read:
268.11 		Subd. 11.Direct care costs category. "Direct care costs category" "Direct care 
268.12 	costs" means costs for nursing services, activities, and social services the wages of nursing 
268.13 	administration, staff education, direct care registered nurses, licensed practical nurses, 
268.14 	certified nursing assistants, trained medication aides, and associated fringe benefits and 
268.15 	payroll taxes; services from a supplemental nursing services agency; supplies that are 
268.16 	stocked at nursing stations or on the floor and distributed or used individually, including, 
268.17 	but not limited to: alcohol, applicators, cotton balls, incontinence pads, disposable ice 
268.18 	bags, dressings, bandages, water pitchers, tongue depressors, disposable gloves, enemas, 
268.19 	enema equipment, soap, medication cups, diapers, plastic waste bags, sanitary products, 
268.20 	thermometers, hypodermic needles and syringes, clinical reagents or similar diagnostic 
268.21 	agents, drugs that are not paid on a separate fee schedule by the medical assistance 
268.22 	program or any other payer, and technology related to the provision of nursing care to 
268.23 	residents, such as electronic charting systems.

268.24 	Sec. 39. Minnesota Statutes 2006, section 256B.441, subdivision 13, is amended to 
268.25 	read:
268.26 		Subd. 13.External fixed costs category. "External fixed costs category" "External 
268.27 	fixed costs"  means costs related to the nursing home surcharge under section 256.9657, 
268.28 	subdivision 1; licensure fees under section 144.122; long-term care consultation fees 
268.29 	under section 256B.0911, subdivision 6; family advisory council fee under section 
268.30 	 144A.33; scholarships under section 256B.431, subdivision 36; planned closure rate 
268.31 	adjustments under section 256B.436 or256B.437; or single bed room incentives under 
268.32 	section 256B.431, subdivision 42; property taxes and property insurance; and PERA.

269.1 	Sec. 40. Minnesota Statutes 2006, section 256B.441, subdivision 14, is amended to 
269.2 	read:
269.3 		Subd. 14.Facility average case mix index. "Facility average case mix index" or 
269.4 	"CMI" means a numerical value score that describes the relative resource use for all 
269.5 	residents within the groups under the resource utilization group (RUG-III) classification 
269.6 	system prescribed by the commissioner based on an assessment of each resident. The 
269.7 	facility average CMI shall be computed as the standardized days divided by total days for 
269.8 	all residents in the facility. The RUG's weights used in this section shall be as follows 
269.9 	for each RUG's class: SE3 1.605; SE2 1.247; SE1 1.081; RAD 1.509; RAC 1.259; RAB 
269.10 	1.109; RAA 0.957; SSC 1.453; SSB 1.254; SSA 1.047; CC2 1.292; CC1 1.200; CB2 
269.11 	1.086; CB1 1.017; CA2 0.908; CA1 0.834; IB2 0.877; IB1 0.817; IA2 0.720; IA1 0.676; 
269.12 	BB2 0.956; BB1 0.885; BA2 0.716; BA1 0.673; PE2 1.199; PE1 1.104; PD2 1.023; 
269.13 	PD1 0.948; PC2 0.926; PC1 0.860; PB2 0.786; PB1 0.734; PA2 0.691; PA1 0.651; BC1 
269.14 	0.651; and DDF 1.000.

269.15 	Sec. 41. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
269.16 	subdivision to read:
269.17 		Subd. 14a.Facility type groups. Facilities shall be classified into two groups, 
269.18 	called "facility type groups," which shall consist of:
269.19 	(1) C&NC/R80: facilities that are hospital-attached, or are licensed under Minnesota 
269.20 	Rules, parts 9570.2000 to 9570.3400; and 
269.21 	(2) freestanding: all other facilities.

269.22 	Sec. 42. Minnesota Statutes 2006, section 256B.441, subdivision 17, is amended to 
269.23 	read:
269.24 		Subd. 17.Fringe benefit costs. "Fringe benefit costs" means the costs for group 
269.25 	life, health, dental, workers' compensation, and other employee insurances and pension, 
269.26 	profit-sharing, and retirement plans for which the employer pays all or a portion of the 
269.27 	costs and that are available to at least all employees who work at least 20 hours per week.

269.28 	Sec. 43. Minnesota Statutes 2006, section 256B.441, subdivision 20, is amended to 
269.29 	read:
269.30 		Subd. 20.Housekeeping costs. "Housekeeping costs" means the costs for the 
269.31 	salaries and wages of the housekeeping supervisor, housekeepers, and other cleaning 
269.32 	employees and associated fringe benefits and payroll taxes. It also includes the cost of 
270.1 	housekeeping supplies, including, but not limited to,  cleaning and lavatory supplies and 
270.2 	contract services.

270.3 	Sec. 44. Minnesota Statutes 2006, section 256B.441, subdivision 24, is amended to 
270.4 	read:
270.5 		Subd. 24.Maintenance and plant operations costs. "Maintenance and plant 
270.6 	operations costs" means the costs for the salaries and wages of the maintenance supervisor, 
270.7 	engineers, heating-plant employees, and other maintenance employees and associated 
270.8 	fringe benefits and payroll taxes. It also includes direct costs for maintenance and 
270.9 	operation of the building and grounds, including, but not limited to,  fuel, electricity, 
270.10 	medical waste and garbage removal, water, sewer, supplies, tools, and repairs.

270.11 	Sec. 45. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
270.12 	subdivision to read:
270.13 		Subd. 28a.Other direct care costs. "Other direct care costs" means the costs 
270.14 	for the salaries and wages and associated fringe benefits and payroll taxes of mental 
270.15 	health workers, religious personnel, and other direct care employees not specified in 
270.16 	the definition of direct care costs. 

270.17 	Sec. 46. Minnesota Statutes 2006, section 256B.441, subdivision 30, is amended to 
270.18 	read:
270.19 		Subd. 30.Peer groups. Facilities shall be classified into three groups, called "peer 
270.20 	groups," which by county. The groups  shall consist of:
270.21 	(1) C&NC/Short Stay/R80 - facilities that have three or more admissions per bed 
270.22 	per year, are hospital-attached, or are licensed under Minnesota Rules, parts 9570.2000 
270.23 	to 9570.3600 group one: facilities in Anoka, Benton, Carlton, Carver, Chisago, Dakota, 
270.24 	Dodge, Goodhue, Hennepin, Isanti, Mille Lacs, Morrison, Olmsted, Ramsey, Rice, Scott, 
270.25 	Sherburne, St. Louis, Stearns, Steele, Wabasha, Washington, Winona, or Wright County;
270.26 	(2) boarding care homes - facilities that have more than 50 percent of their beds 
270.27 	licensed as boarding care homes group two: facilities in Aitkin, Beltrami, Blue Earth, 
270.28 	Brown, Cass, Clay, Cook, Crow Wing, Faribault, Fillmore, Freeborn, Houston, Hubbard, 
270.29 	Itasca, Kanabec, Koochiching, Lake, Lake of the Woods, Le Sueur, Martin, McLeod, 
270.30 	Meeker, Mower, Nicollet, Norman, Pine, Roseau, Sibley, Todd, Wadena, Waseca, 
270.31 	Watonwan, or Wilkin County; and
270.32 	(3) standard - all other facilities group three: facilities in all other counties.

271.1 	Sec. 47. Minnesota Statutes 2006, section 256B.441, subdivision 31, is amended to 
271.2 	read:
271.3 		Subd. 31.Prior rate-setting method system operating cost payment rate. "Prior 
271.4 	rate-setting method" "Prior system operating cost payment rate"  means the operating cost 
271.5 	payment rate determination process in effect prior to October 1, 2006 on September 30, 
271.6 	2008, under Minnesota Rules and Minnesota Statutes, not including planned closure rate 
271.7 	adjustments under section 256B.436 or 256B.437, or single bed room incentives under 
271.8 	section 256B.431, subdivision 42.

271.9 	Sec. 48. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
271.10 	subdivision to read:
271.11 		Subd. 33a.Raw food costs. "Raw food costs" means the cost of food provided to 
271.12 	nursing facility residents. Also included are special dietary supplements used for tube 
271.13 	feeding or oral feeding, such as elemental high nitrogen diet.

271.14 	Sec. 49. Minnesota Statutes 2006, section 256B.441, subdivision 34, is amended to 
271.15 	read:
271.16 		Subd. 34.Related organization. "Related organization" means a person that 
271.17 	furnishes goods or services to a nursing facility and that is a close relative of a nursing 
271.18 	facility, an affiliate of a nursing facility, a close relative of an affiliate of a nursing facility, 
271.19 	or an affiliate of a close relative of an affiliate of a nursing facility. As used in this 
271.20 	subdivision, paragraphs (a) to (d) apply:
271.21 	(a) "Affiliate" means a person that directly, or indirectly through one or more 
271.22 	intermediaries, controls or is controlled by, or is under common control with another 
271.23 	person.
271.24 	(b) "Person" means an individual, a corporation, a partnership, an association, a 
271.25 	trust, an unincorporated organization, or a government or political subdivision.
271.26 	(c) "Close relative of an affiliate of a nursing facility" means an individual whose 
271.27 	relationship by blood, marriage, or adoption to an individual who is an affiliate of a 
271.28 	nursing facility is no more remote than first cousin.
271.29 	(d) "Control" including the terms "controlling," "controlled by," and "under common 
271.30 	control with" means the possession, direct or indirect, of the power to direct or cause the 
271.31 	direction of the management, operations, or policies of a person, whether through the 
271.32 	ownership of voting securities, by contract, or otherwise, or to influence in any manner 
271.33 	other than through an arms length, legal transaction.

272.1 	Sec. 50. Minnesota Statutes 2006, section 256B.441, subdivision 38, is amended to 
272.2 	read:
272.3 		Subd. 38.Social services costs. "Social services costs" means the costs for the 
272.4 	salaries and wages of the supervisor and other social work employees, associated fringe 
272.5 	benefits and payroll taxes, supplies, services, and consultants. This category includes the 
272.6 	cost of those employees who manage and process admission to the nursing facility.

272.7 	Sec. 51. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
272.8 	subdivision to read:
272.9 		Subd. 42a.Therapy costs. "Therapy costs" means any costs related to medical 
272.10 	assistance therapy services provided to residents that are not billed separately from the 
272.11 	daily operating rate.

272.12 	Sec. 52. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
272.13 	subdivision to read:
272.14 		Subd. 46a.Calculation of quality add-on for October 1, 2007. (a) The payment 
272.15 	rate for the rate year beginning October 1, 2007, for the quality add-on, is a variable 
272.16 	amount based on each facility's quality score. For the rate year, the maximum quality 
272.17 	add-on is .3 percent of the operating payment rate in effect on September 30, 2007. The 
272.18 	commissioner shall determine the quality add-on for each facility according to paragraphs 
272.19 	(b) to (d).
272.20 	(b) For each facility, the commissioner shall determine the operating payment rate 
272.21 	in effect on September 30, 2007.
272.22 	(c) For each facility, the commissioner shall determine a ratio of the quality score of 
272.23 	the facility determined in subdivision 44, subtract 40, and then divide by 60. If this value 
272.24 	is less than zero, the commissioner shall use the value zero.
272.25 	(d) For each facility, the quality add-on is the value determined in paragraph (b), 
272.26 	multiplied by the value determined in paragraph (c), multiplied by .3 percent.

272.27 	Sec. 53. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
272.28 	subdivision to read:
272.29 		Subd. 48.Calculation of operating per diems. The direct care per diem for 
272.30 	each facility shall be the facility's direct care costs divided by its standardized days. 
272.31 	The other care-related per diem shall be the sum of the facility's activities costs, other 
272.32 	direct care costs, raw food costs, therapy costs, and social services costs, divided by the 
272.33 	facility's resident days. The other operating per diem shall be the sum of the facility's 
273.1 	administrative costs, dietary costs, housekeeping costs, laundry costs, and maintenance 
273.2 	and plant operations costs divided by the facility's resident days.

273.3 	Sec. 54. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
273.4 	subdivision to read:
273.5 		Subd. 49.Determination of total care-related per diem. The total care-related 
273.6 	per diem for each facility shall be the sum of the direct care per diem and the other 
273.7 	care-related per diem.

273.8 	Sec. 55. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
273.9 	subdivision to read:
273.10 		Subd. 50.Determination of total care-related limit. (a) The limit on the total 
273.11 	care-related per diem shall be determined for each peer group and facility type group 
273.12 	combination. A facility's total care-related per diems shall be limited to 120 percent of the 
273.13 	median for the facility's peer and facility type group. The facility-specific direct care costs 
273.14 	used in making this comparison and in the calculation of the median shall be based on a 
273.15 	RUG's weight of 1.00. A facility that is above that limit shall have its total care-related per 
273.16 	diem reduced to the limit. If a reduction of the total care-related per diem is necessary 
273.17 	because of this limit, the reduction shall be made proportionally to both the direct care per 
273.18 	diem and the other care-related per diem.
273.19 	(b) Beginning with rates determined for October 1, 2014, the total care-related limit 
273.20 	shall be a variable amount based on each facility's quality score, as determined under 
273.21 	section 256B.441, subdivision 44, in accordance with clauses (1) to (4):
273.22 	(1) for each facility, the commissioner shall determine the quality score, subtract 40, 
273.23 	divide by 40, and convert to a percentage;
273.24 	(2) if the value determined in clause (1) is less than zero, the total care-related limit 
273.25 	shall be 105 percent of the median for the facility's peer and facility type group;
273.26 	(3) if the value determined in clause (1) is greater than 100 percent, the total 
273.27 	care-related limit shall be 125 percent of the median for the facility's peer and facility 
273.28 	type group; and 
273.29 	(4) if the value determined in clause (1) is greater than zero and less than 100 
273.30 	percent, the total care-related limit shall be 105 percent of the median for the facility's peer 
273.31 	and facility type group plus one-fifth of the percentage determined in clause (1).

273.32 	Sec. 56. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
273.33 	subdivision to read:
274.1 		Subd. 50a.Determination of proximity adjustments. For a nursing facility 
274.2 	located in close proximity to another nursing facility of the same facility group type but in 
274.3 	a different peer group and that has higher limits for care-related or other operating costs, 
274.4 	the commissioner shall adjust the limits in accordance with clauses (1) to (4):
274.5 	(1) determine the difference between the limits;
274.6 	(2) determine the distance between the two facilities, by the shortest driving route. If 
274.7 	the distance exceeds 20 miles, no adjustment shall be made;
274.8 	(3) subtract the value in clause (2) from 20 miles, divide by 20, and convert to a 
274.9 	percentage; and 
274.10 	(4) increase the limits for the nursing facility with the lower limits by the value 
274.11 	determined in clause (1) multiplied by the value determined in clause (3).

274.12 	Sec. 57. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
274.13 	subdivision to read:
274.14 		Subd. 51.Determination of other operating limit. The limit on the other operating 
274.15 	per diem shall be determined for each peer group. A facility's other operating per diem 
274.16 	shall be limited to 105 percent of the median for its peer group. A facility that is above 
274.17 	that limit shall have its other operating per diem reduced to the limit.

274.18 	Sec. 58. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
274.19 	subdivision to read:
274.20 		Subd. 51a.Exception allowing contracting for specialized care. (a) For rate years 
274.21 	beginning October 1, 2013, the commissioner may negotiate increases to the care-related 
274.22 	limit for nursing facilities that provide specialized care, at a cost to the general fund not 
274.23 	to exceed $600,000 per year. The commissioner shall publish a request for proposals 
274.24 	annually, and may negotiate increases to the limits that shall apply for either one or 
274.25 	two years before the increase shall be subject to a new proposal and negotiation. The 
274.26 	care-related limit may be increased by up to 50 percent.
274.27 	(b) In selecting facilities with which to negotiate, the commissioner shall consider:
274.28 	(1) the diagnoses or other circumstances of residents in the specialized program that 
274.29 	require care that costs substantially more than the RUG's rates associated with those 
274.30 	residents;
274.31 	(2) the nature of the specialized program or programs offered to meet the needs 
274.32 	of these individuals; and 
274.33 	(3) outcomes achieved by the specialized program.

275.1 	Sec. 59. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
275.2 	subdivision to read:
275.3 		Subd. 52.Determination of efficiency incentive. Each facility shall be eligible 
275.4 	for an efficiency incentive based on its other operating per diem. A facility with an other 
275.5 	operating per diem that exceeds the limit in subdivision 51 shall receive no efficiency 
275.6 	incentive. All other facilities shall receive an incentive calculated as 50 percent times the 
275.7 	difference between the facility's other operating per diem and its other operating per diem 
275.8 	limit, up to a maximum incentive of $3.

275.9 	Sec. 60. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
275.10 	subdivision to read:
275.11 		Subd. 53.Calculation of payment rate for external fixed costs. The commissioner 
275.12 	shall calculate a payment rate for external fixed costs.
275.13 	(a) For a facility licensed as a nursing home, the portion related to section 256.9657 
275.14 	shall be equal to $8.86. For a facility licensed as both a nursing home and a boarding care 
275.15 	home, the portion related to section 256.9657 shall be equal to $8.86 multiplied by the 
275.16 	result of its number of nursing home beds divided by its total number of licensed beds.
275.17 	(b) The portion related to the licensure fee under section 144.122, paragraph (d), 
275.18 	shall be the amount of the fee divided by actual resident days.
275.19 	(c) The portion related to scholarships shall be determined under section 256B.431, 
275.20 	subdivision 36.
275.21 	(d) The portion related to long-term care consultation shall be determined according 
275.22 	to section 256B.0911, subdivision 6.
275.23 	(e) The portion related to development and education of resident and family advisory 
275.24 	councils under section 144A.33 shall be $5 divided by 365.
275.25 	(f) The portion related to planned closure rate adjustments shall be as determined 
275.26 	under sections 256B.436 and 256B.437, subdivision 6. Planned closure rate adjustments 
275.27 	that take effect before October 1, 2011, shall no longer be included in the payment rate 
275.28 	for external fixed costs beginning October 1, 2013. Planned closure rate adjustments that 
275.29 	take effect on or after October 1, 2011, shall no longer be included in the payment rate 
275.30 	for external fixed costs beginning on October 1 of the first year not less than two years 
275.31 	after their effective date.
275.32 	(g) The portions related to property insurance, real estate taxes, special assessments, 
275.33 	and payments made in lieu of real estate taxes directly identified or allocated to the nursing 
275.34 	facility shall be the actual amounts divided by actual resident days.
276.1 	(h) The portion related to the Public Employees Retirement Association shall be 
276.2 	actual costs divided by resident days.
276.3 	(i) The single bed room incentives shall be as determined under section 256B.431, 
276.4 	subdivision 42. Single bed room incentives that take effect before October 1, 2011, shall 
276.5 	no longer be included in the payment rate for external fixed costs beginning October 1, 
276.6 	2013. Single bed room incentives that take effect on or after October 1, 2011, shall no 
276.7 	longer be included in the payment rate for external fixed costs beginning on October 1 of 
276.8 	the first year not less than two years after their effective date.
276.9 	(j) The payment rate for external fixed costs shall be the sum of the amounts in 
276.10 	paragraphs (a) to (i).

276.11 	Sec. 61. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
276.12 	subdivision to read:
276.13 		Subd. 54.Determination of total payment rates. In rate years when rates are 
276.14 	rebased, the total payment rate for a RUG's weight of 1.00 shall be the sum of the total 
276.15 	care-related payment rate, other operating payment rate, efficiency incentive, external 
276.16 	fixed cost rate, and the property rate determined under section 256B.434. To determine 
276.17 	a total payment rate for each RUG's level, the total care-related payment rate shall be 
276.18 	divided into the direct care payment rate and the other care-related payment rate, and the 
276.19 	direct care payment rate multiplied by the RUG's weight for each RUG's level using the 
276.20 	weights in subdivision 14.

276.21 	Sec. 62. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
276.22 	subdivision to read:
276.23 		Subd. 55.Phase-in of rebased operating cost payment rates.  (a) For the rate years 
276.24 	beginning October 1, 2008, to October 1, 2012, the operating cost payment rate calculated 
276.25 	under this section shall be phased in by blending the operating cost rate with the operating 
276.26 	cost payment rate determined under section 256B.434. For the rate year beginning 
276.27 	October 1, 2008, the operating cost payment rate for each facility shall be 24.9 percent of 
276.28 	the operating cost payment rate from this section, and 75.1 percent of the operating cost 
276.29 	payment rate from section 256B.434. For the rate year beginning October 1, 2009, the 
276.30 	operating cost payment rate for each facility shall be 57.6 percent of the operating cost 
276.31 	payment rate from this section, and 42.4 percent of the operating cost payment rate from 
276.32 	section 256B.434. For the rate year beginning October 1, 2010, the operating cost payment 
276.33 	rate for each facility shall be 92.1 percent of the operating cost payment rate from this 
276.34 	section, and 7.9 percent of the operating cost payment rate from section 256B.434. For 
277.1 	the rate year beginning October 1, 2011, the operating cost payment rate for each facility 
277.2 	shall be 96 percent of the operating cost payment rate from this section, and 4 percent 
277.3 	of the operating cost payment rate from section 256B.434. For the rate year beginning 
277.4 	October 1, 2012, the operating cost payment rate for each facility shall be the operating 
277.5 	cost payment rate determined under this section. The blending of operating cost payment 
277.6 	rates under this section shall be performed separately for each RUG's class.
277.7 	(b) A portion of the funds received under this subdivision that are in excess of 
277.8 	operating cost payment rates that a facility would have received under section 256B.434, 
277.9 	as determined in accordance with clauses (1) to (3), shall be subject to the requirements in 
277.10 	section 256B.434, subdivision 19, paragraphs (b) to (h).
277.11 	(1) Determine the amount of additional funding available to a facility, which shall be 
277.12 	equal to total medical assistance resident days from the most recent reporting year times 
277.13 	the difference between the blended rate determined in paragraph (a) for the rate year being 
277.14 	computed and the blended rate for the prior year.
277.15 	(2) Determine the portion of all operating costs, for the most recent reporting year, 
277.16 	that are compensation related. If this value exceeds 75 percent, use 75 percent.
277.17 	(3) Subtract the amount determined in clause (2) from 75 percent.
277.18 	(4) The portion of the fund received under this subdivision that shall be subject to 
277.19 	the requirements in section 256B.434, subdivision 19, paragraphs (b) to (h), shall equal 
277.20 	the amount determined in clause (1) times the amount determined in clause (3).

277.21 	Sec. 63. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
277.22 	subdivision to read:
277.23 		Subd. 56.Hold harmless. For the rate years beginning October 1, 2008, to October 
277.24 	1, 2012, no nursing facility shall receive an operating cost payment rate less than its 
277.25 	operating cost payment rate under section 256B.434. The comparison of operating cost 
277.26 	payment rates under this section shall be made for a RUG's rate with a weight of 1.00.

277.27 	Sec. 64. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
277.28 	subdivision to read:
277.29 		Subd. 57.Appeals. Nursing facilities may appeal, as described under section 
277.30 	256B.50, the determination of a payment rate established under this chapter.

277.31 	Sec. 65. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
277.32 	subdivision to read:
278.1 		Subd. 58.Implementation delay. Within six months prior to the effective date of 
278.2 	(1) rebasing of property payment rates under subdivision 1; (2) quality-based rate limits 
278.3 	under subdivision 50; and (3) the removal of planned closure rate adjustments and single 
278.4 	bed room incentives from external fixed costs under subdivision 53, the commissioner 
278.5 	shall compare the average operating cost for all facilities combined from the most recent 
278.6 	cost reports to the average medical assistance operating payment rates for all facilities 
278.7 	combined from the same time period. Each provision shall not go into effect until the 
278.8 	average medical assistance operating payment rate is at least 92 percent of the average 
278.9 	operating cost.

278.10 	Sec. 66. Minnesota Statutes 2006, section 256B.49, is amended by adding a 
278.11 	subdivision to read:
278.12 		Subd. 16a.Medical assistance reimbursement. (a) The commissioner shall 
278.13 	seek federal approval for medical assistance reimbursement of independent living skills 
278.14 	services, foster care waiver service, supported employment, prevocational service, 
278.15 	structured day service, and adult day care under the home and community-based waiver 
278.16 	for persons with a traumatic brain injury, the community alternatives for disabled 
278.17 	individuals waivers, and the community alternative care waivers.
278.18 	(b) Medical reimbursement shall be made only when the provider demonstrates 
278.19 	evidence of its capacity to meet basic health, safety, and protection standards through 
278.20 	one of the methods in paragraphs (c) to (e).
278.21 	(c) The provider is licensed to provide services under chapter 245B and agrees to 
278.22 	apply these standards to services funded through the traumatic brain injury, community 
278.23 	alternatives for disabled, or community alternative care home and community-based 
278.24 	waivers.
278.25 	(d) The local agency contracting for the services certifies on a form provided by the 
278.26 	commissioner that the provider has the capacity to meet the individual needs as identified 
278.27 	in each person's individual service plan. When certifying that the service provider meets 
278.28 	the necessary provider qualifications, the local agency shall verify that the provider has 
278.29 	policies and procedures governing the following:
278.30 	(1) protection of the consumer's rights and privacy;
278.31 	(2) risk assessment and planning;
278.32 	(3) record keeping and reporting of incidents and emergencies with documentation 
278.33 	of corrective action if needed;
278.34 	(4) service outcomes, regular reviews of progress, and periodic reports;
278.35 	(5) complaint and grievance procedures;
279.1 	(6) service termination or suspension;
279.2 	(7) necessary training and supervision of direct care staff that includes:
279.3 	(i) documentation in personnel files of 20 hours of orientation training in providing 
279.4 	training related to service provision;
279.5 	(ii) training in recognizing the symptoms and effects of certain disabilities, health 
279.6 	conditions, and positive behavioral supports and interventions; and 
279.7 	(iii) a minimum of five hours of related training annually; and 
279.8 	(iv) when applicable:
279.9 	(A) safe medication administration;
279.10 	(B) proper handling of consumer funds; and 
279.11 	(C) compliance with prohibitions and standards developed by the commissioner to 
279.12 	satisfy federal requirements regarding the use of restraints and restrictive interventions. 
279.13 	The local agency shall review at least annually each service provider's continued 
279.14 	compliance with the standards governing basic health, safety, and protection of rights.
279.15 	(h) The commissioner shall seek federal approval for Medicaid reimbursement 
279.16 	of foster care services under the home and community-based waiver for persons with 
279.17 	a traumatic brain injury, the community alternatives for disabled individuals waiver, 
279.18 	and community alternative care waiver when the provider demonstrates evidence of its 
279.19 	capacity to meet basic health, safety, and protection standards. The local agency shall 
279.20 	verify that the provider is licensed under Minnesota Rules, parts 9555.5105 to 9555.6265, 
279.21 	and certify that the provider has policies and procedures that govern:
279.22 	(1) compliance with prohibitions and standards developed by the commissioner to 
279.23 	meet federal requirements regarding the use of restraints and restrictive interventions; and 
279.24 	(2) documentation of service needs and outcomes, regular reviews of progress, 
279.25 	and periodic reports.
279.26 	The local agency shall review at least annually each service provider's continued 
279.27 	compliance with the standards governing basic health, safety, and protection of rights 
279.28 	standards.

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

279.30 	Sec. 67. Minnesota Statutes 2006, section 256B.5012, is amended by adding a 
279.31 	subdivision to read:
279.32 		Subd. 7.ICF/MR rate increases effective October 1, 2007, and October 1, 2008.
 279.33 	(a) For the rate year beginning October 1, 2007, the commissioner shall make available to 
279.34 	each facility reimbursed under this section operating payment rate adjustments equal to 
280.1 	3.0 percent of the operating payment rates in effect on September 30, 2007. For the rate 
280.2 	year beginning October 1, 2008, the commissioner shall make available to each facility 
280.3 	reimbursed under this section operating payment rate adjustments equal to 3.0 percent 
280.4 	of the operating payment rates in effect on September 30, 2008. For each facility, the 
280.5 	commissioner shall make available an adjustment, based on occupied beds, using the 
280.6 	percentage specified in this paragraph multiplied by the total payment rate, including the 
280.7 	variable rate but excluding the property-related payment rate, in effect on the preceding 
280.8 	day. The total payment rate shall include the adjustment provided in section 256B.501, 
280.9 	subdivision 12. A facility whose payment rates are governed by closure agreements, 
280.10 	receivership agreements, or Minnesota Rules, part 9553.0075, is not eligible for an 
280.11 	adjustment otherwise granted under this subdivision.
280.12 	(b) Seventy-five percent of the money resulting from the rate adjustments under 
280.13 	paragraph (a) must be used for increases in compensation-related costs for employees 
280.14 	directly employed by the facility on or after the effective date of the rate adjustments, 
280.15 	except:
280.16 	(1) the administrator;
280.17 	(2) persons employed in the central office of a corporation that has an ownership 
280.18 	interest in the facility or exercises control over the facility; and 
280.19 	(3) persons paid by the facility under a management contract.
280.20 	(c) Two-thirds of the money available under paragraph (b) must be used for wage 
280.21 	increases for all employees directly employed by the facility on or after the effective 
280.22 	date of the rate adjustments, except those listed in paragraph (b), clauses (1) to (3). The 
280.23 	wage adjustment that employees receive under this paragraph must be paid as an equal 
280.24 	hourly percentage wage increase for all eligible employees. Only costs associated with 
280.25 	the portion of the equal hourly percentage wage increase that goes to all employees shall 
280.26 	qualify under this paragraph. Costs associated with wage increases in excess of the amount 
280.27 	of the equal hourly percentage wage increase provided to all employees shall be allowed 
280.28 	only for meeting the requirements in paragraph (b). This paragraph shall not apply to:
280.29 	(1) employees eligible for a Taft-Hartley insurance plan established under United 
280.30 	States Code, title 29, section 186(c)(5); or 
280.31 	(2) public employees.
280.32 	(d) The commissioner shall allow as compensation-related costs all costs for:
280.33 	(1) wages and salaries;
280.34 	(2) FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers' 
280.35 	compensation;
281.1 	(3) the employer's share of health and dental insurance, life insurance, disability 
281.2 	insurance, long-term care insurance, uniform allowance, and pensions; and
281.3 	(4) other benefits provided, subject to the approval of the commissioner.
281.4 	(e) The portion of the rate adjustments under paragraph (a) that is not subject to the 
281.5 	requirements in paragraphs (b) and (c) shall be provided to facilities effective October 
281.6 	1 of each year.
281.7 	(f) Facilities may apply for the portion of the rate adjustments under paragraph 
281.8 	(a) that is subject to the requirements in paragraphs (b) and (c). The application 
281.9 	must be submitted to the commissioner within six months of the effective date of the 
281.10 	rate adjustments, and the facility must provide additional information required by 
281.11 	the commissioner within nine months of the effective date of the rate adjustments. 
281.12 	The commissioner must respond to all applications within three weeks of receipt. 
281.13 	The commissioner may waive the deadlines in this paragraph under extraordinary 
281.14 	circumstances, to be determined at the sole discretion of the commissioner. The 
281.15 	application must contain:
281.16 	(1) an estimate of the amounts of money that must be used as specified in paragraphs 
281.17 	(b) and (c);
281.18 	(2) a detailed distribution plan specifying the allowable compensation-related and 
281.19 	wage increases the facility will implement to use the funds available in clause (1);
281.20 	(3) a description of how the facility will notify eligible employees of the contents of 
281.21 	the approved application, which must provide for giving each eligible employee a copy of 
281.22 	the approved application, excluding the information required in clause (1), or posting a 
281.23 	copy of the approved application, excluding the information required in clause (1), for 
281.24 	a period of at least six weeks in an area of the facility to which all eligible employees 
281.25 	have access; and
281.26 	(4) instructions for employees who believe they have not received the 
281.27 	compensation-related or wage increases specified in clause (2), as approved by the 
281.28 	commissioner, and which must include a mailing address, e-mail address, and the 
281.29 	telephone number that may be used by the employee to contact the commissioner or the 
281.30 	commissioner's representative.
281.31 	(g) The commissioner shall ensure that cost increases in distribution plans under 
281.32 	paragraph (f), clause (2), that may be included in approved applications, comply with 
281.33 	requirements in clauses (1) to (4):
281.34 	(1) costs to be incurred during the applicable rate year resulting from wage and 
281.35 	salary increases effective prior to the first day of the facility's payroll period that includes 
282.1 	October 1 of each year shall be allowed if they were not used in a prior year's application 
282.2 	and they meet the requirements of paragraphs (b) and (c);
282.3 	(2) a portion of the costs resulting from tenure-related wage or salary increases 
282.4 	may be considered to be allowable wage increases, according to formulas that the 
282.5 	commissioner shall provide, where employee retention is above the average statewide 
282.6 	rate of retention of direct care employees;
282.7 	(3) the annualized amount of increases in costs for the employer's share of health 
282.8 	and dental insurance, life insurance, disability insurance, and workers' compensation shall 
282.9 	be allowable compensation-related increases if they are effective on or after April 1 of 
282.10 	the year in which the rate adjustments are effective and prior to April 1 of the following 
282.11 	year; and 
282.12 	(4) for facilities in which employees are represented by an exclusive bargaining 
282.13 	representative, the commissioner shall approve the application only upon receipt of a letter 
282.14 	of acceptance of the distribution plan, as regards members of the bargaining unit, signed 
282.15 	by the exclusive bargaining agent and dated after enactment of this subdivision. Upon 
282.16 	receipt of the letter of acceptance, the commissioner shall deem all requirements of this 
282.17 	section as having been met in regard to the members of the bargaining unit.
282.18 	(h) The commissioner shall review applications received under paragraph (f) and 
282.19 	shall provide the portion of the rate adjustments under paragraphs (b) and (c) if the 
282.20 	requirements of this subdivision have been met. The rate adjustments shall be effective 
282.21 	October 1 of each year. Notwithstanding paragraph (a), if the approved application 
282.22 	distributes less money than is available, the amount of the rate adjustment shall be reduced 
282.23 	so that the amount of money made available is equal to the amount to be distributed.

282.24 	Sec. 68. Minnesota Statutes 2006, section 256B.69, subdivision 23, is amended to read:
282.25 		Subd. 23.Alternative services; elderly and disabled persons. (a) The 
282.26 	commissioner may implement demonstration projects to create alternative integrated 
282.27 	delivery systems for acute and long-term care services to elderly persons and persons 
282.28 	with disabilities as defined in section 256B.77, subdivision 7a, that provide increased 
282.29 	coordination, improve access to quality services, and mitigate future cost increases. 
282.30 	The commissioner may seek federal authority to combine Medicare and Medicaid 
282.31 	capitation payments for the purpose of such demonstrations and may contract with 
282.32 	Medicare-approved special needs plans to provide Medicaid services. Medicare funds and 
282.33 	services shall be administered according to the terms and conditions of the federal contract 
282.34 	and demonstration provisions. For the purpose of administering medical assistance funds, 
282.35 	demonstrations under this subdivision are subject to subdivisions 1 to 22. The provisions 
283.1 	of Minnesota Rules, parts 9500.1450 to 9500.1464, apply to these demonstrations, 
283.2 	with the exceptions of parts 9500.1452, subpart 2, item B; and 9500.1457, subpart 1, 
283.3 	items B and C, which do not apply to persons enrolling in demonstrations under this 
283.4 	section. An initial open enrollment period may be provided. Persons who disenroll from 
283.5 	demonstrations under this subdivision remain subject to Minnesota Rules, parts 9500.1450
283.6 	to 9500.1464. When a person is enrolled in a health plan under these demonstrations and 
283.7 	the health plan's participation is subsequently terminated for any reason, the person shall 
283.8 	be provided an opportunity to select a new health plan and shall have the right to change 
283.9 	health plans within the first 60 days of enrollment in the second health plan. Persons 
283.10 	required to participate in health plans under this section who fail to make a choice of 
283.11 	health plan shall not be randomly assigned to health plans under these demonstrations. 
283.12 	Notwithstanding section 256L.12, subdivision 5, and Minnesota Rules, part 9505.5220, 
283.13 	subpart 1, item A, if adopted, for the purpose of demonstrations under this subdivision, 
283.14 	the commissioner may contract with managed care organizations, including counties, to 
283.15 	serve only elderly persons eligible for medical assistance, elderly and disabled persons, or 
283.16 	disabled persons only. For persons with a primary diagnosis of developmental disability, 
283.17 	serious and persistent mental illness, or serious emotional disturbance, the commissioner 
283.18 	must ensure that the county authority has approved the demonstration and contracting 
283.19 	design. Enrollment in these projects for persons with disabilities shall be voluntary. The 
283.20 	commissioner shall not implement any demonstration project under this subdivision for 
283.21 	persons with a primary diagnosis of developmental disabilities, serious and persistent 
283.22 	mental illness, or serious emotional disturbance, without approval of the county board of 
283.23 	the county in which the demonstration is being implemented.
283.24 	(b) Notwithstanding chapter 245B, sections 252.40 to 252.46, 256B.092, 256B.501
283.25 	to 256B.5015, and Minnesota Rules, parts 9525.0004 to 9525.0036, 9525.1200 to 
283.26 	9525.1330, 9525.1580, and 9525.1800 to 9525.1930, the commissioner may implement 
283.27 	under this section projects for persons with developmental disabilities. The commissioner 
283.28 	may capitate payments for ICF/MR services, waivered services for developmental 
283.29 	disabilities, including case management services, day training and habilitation and 
283.30 	alternative active treatment services, and other services as approved by the state and by 
283.31 	the federal government. Case management and active treatment must be individualized 
283.32 	and developed in accordance with a person-centered plan. Costs under these projects may 
283.33 	not exceed costs that would have been incurred under fee-for-service. Beginning July 1, 
283.34 	2003, and until twofour years after the pilot project implementation date, subcontractor 
283.35 	participation in the long-term care developmental disability pilot is limited to a nonprofit 
283.36 	long-term care system providing ICF/MR services, home and community-based waiver 
284.1 	services, and in-home services to no more than 120 consumers with developmental 
284.2 	disabilities in Carver, Hennepin, and Scott Counties. The commissioner shall report to the 
284.3 	legislature prior to expansion of the developmental disability pilot project. This paragraph 
284.4 	expires twofour years after the implementation date of the pilot project.
284.5 	(c) Before implementation of a demonstration project for disabled persons, the 
284.6 	commissioner must provide information to appropriate committees of the house of 
284.7 	representatives and senate and must involve representatives of affected disability groups 
284.8 	in the design of the demonstration projects.
284.9 	(d) A nursing facility reimbursed under the alternative reimbursement methodology 
284.10 	in section 256B.434 may, in collaboration with a hospital, clinic, or other health care entity 
284.11 	provide services under paragraph (a). The commissioner shall amend the state plan and 
284.12 	seek any federal waivers necessary to implement this paragraph.
284.13 	(e) The commissioner, in consultation with the commissioners of commerce and 
284.14 	health, may approve and implement programs for all-inclusive care for the elderly (PACE) 
284.15 	according to federal laws and regulations governing that program and state laws or rules 
284.16 	applicable to participating providers. The process for approval of these programs shall 
284.17 	begin only after the commissioner receives grant money in an amount sufficient to cover 
284.18 	the state share of the administrative and actuarial costs to implement the programs during 
284.19 	state fiscal years 2006 and 2007. Grant amounts for this purpose shall be deposited in an 
284.20 	account in the special revenue fund and are appropriated to the commissioner to be used 
284.21 	solely for the purpose of PACE administrative and actuarial costs. A PACE provider is 
284.22 	not required to be licensed or certified as a health plan company as defined in section 
284.23 	62Q.01, subdivision 4. Persons age 55 and older who have been screened by the county 
284.24 	and found to be eligible for services under the elderly waiver or community alternatives 
284.25 	for disabled individuals or who are already eligible for Medicaid but meet level of 
284.26 	care criteria for receipt of waiver services may choose to enroll in the PACE program. 
284.27 	Medicare and Medicaid services will be provided according to this subdivision and 
284.28 	federal Medicare and Medicaid requirements governing PACE providers and programs. 
284.29 	PACE enrollees will receive Medicaid home and community-based services through the 
284.30 	PACE provider as an alternative to services for which they would otherwise be eligible 
284.31 	through home and community-based waiver programs and Medicaid State Plan Services. 
284.32 	The commissioner shall establish Medicaid rates for PACE providers that do not exceed 
284.33 	costs that would have been incurred under fee-for-service or other relevant managed care 
284.34 	programs operated by the state.
284.35 	(f) The commissioner shall seek federal approval to expand the Minnesota disability 
284.36 	health options (MnDHO) program established under this subdivision in stages, first to 
285.1 	regional population centers outside the seven-county metro area and then to all areas 
285.2 	of the state. Until January 1, 2008July 1, 2009, expansion for MnDHO projects that 
285.3 	include home and community-based services is limited to the two projects and service 
285.4 	areas in effect on March 1, 2006.  Enrollment in integrated MnDHO programs that 
285.5 	include home and community-based services shall remain voluntary. Costs for home 
285.6 	and community-based services included under MnDHO must not exceed costs that 
285.7 	would have been incurred under the fee-for-service program. In developing program 
285.8 	specifications for expansion of integrated programs, the commissioner shall involve and 
285.9 	consult the state-level stakeholder group established in subdivision 28, paragraph (d), 
285.10 	including consultation on whether and how to include home and community-based waiver 
285.11 	programs. Plans for further expansion of MnDHO projects shall be presented to the chairs 
285.12 	of the house and senate committees with jurisdiction over health and human services 
285.13 	policy and finance by February 1, 2007.
285.14 	(g) Notwithstanding section 256B.0261, health plans providing services under this 
285.15 	section are responsible for home care targeted case management and relocation targeted 
285.16 	case management. Services must be provided according to the terms of the waivers and 
285.17 	contracts approved by the federal government.

285.18 	Sec. 69. [256C.261] SERVICES FOR DEAF-BLIND PERSONS.
285.19 	(a) The commissioner of human services shall combine the existing biennial base 
285.20 	level funding for deaf-blind services into a single grant program. At least 35 percent 
285.21 	of the total funding is awarded for services and other supports to deaf-blind children 
285.22 	and their families and at least 25 percent is awarded for services and other supports to 
285.23 	deaf-blind adults.
285.24 	The commissioner shall award grants for the purposes of: 
285.25 	(1) providing services and supports to individuals who are deaf-blind; and 
285.26 	(2) developing and providing training to counties and the network of senior citizen 
285.27 	service providers. The purpose of the training grants is to teach counties how to use 
285.28 	existing programs that capture federal financial participation to meet the needs of eligible 
285.29 	deaf-blind persons and to build capacity of senior service programs to meet the needs of 
285.30 	seniors with a dual sensory hearing and vision loss.
285.31 	(b) The commissioner may make grants:
285.32 	(1) for services and training provided by organizations; and
285.33 	(2) to develop and administer consumer-directed services.
285.34 	(c) Any entity that is able to satisfy the grant criteria is eligible to receive a grant 
285.35 	under paragraph (a).
286.1 	(d) Deaf-blind service providers may, but are not required to, provide intervenor 
286.2 	services as part of the service package provided with grant funds under this section.

286.3 	Sec. 70. Minnesota Statutes 2006, section 256I.04, subdivision 3, is amended to read:
286.4 		Subd. 3.Moratorium on the development of group residential housing beds. (a) 
286.5 	County agencies shall not enter into agreements for new group residential housing beds 
286.6 	with total rates in excess of the MSA equivalent rate except: (1) for group residential 
286.7 	housing establishments licensed under Minnesota Rules, parts 9525.0215 to 9525.0355, 
286.8 	provided the facility is needed to meet the census reduction targets for persons with 
286.9 	developmental disabilities at regional treatment centers; (2) to ensure compliance with 
286.10 	the federal Omnibus Budget Reconciliation Act alternative disposition plan requirements 
286.11 	for inappropriately placed persons with developmental disabilities or mental illness; 
286.12 	(3) up to 80 beds in a single, specialized facility located in Hennepin County that will 
286.13 	provide housing for chronic inebriates who are repetitive users of detoxification centers 
286.14 	and are refused placement in emergency shelters because of their state of intoxication, 
286.15 	and planning for the specialized facility must have been initiated before July 1, 1991, in 
286.16 	anticipation of receiving a grant from the Housing Finance Agency under section 462A.05, 
286.17 	subdivision 20a, paragraph (b); (4) notwithstanding the provisions of subdivision 2a, for 
286.18 	up to 190 supportive housing units in Anoka, Dakota, Hennepin, or Ramsey County 
286.19 	for homeless adults with a mental illness, a history of substance abuse, or human 
286.20 	immunodeficiency virus or acquired immunodeficiency syndrome. For purposes of this 
286.21 	section, "homeless adult" means a person who is living on the street or in a shelter or 
286.22 	discharged from a regional treatment center, community hospital, or residential treatment 
286.23 	program and has no appropriate housing available and lacks the resources and support 
286.24 	necessary to access appropriate housing. At least 70 percent of the supportive housing 
286.25 	units must serve homeless adults with mental illness, substance abuse problems, or human 
286.26 	immunodeficiency virus or acquired immunodeficiency syndrome who are about to be 
286.27 	or, within the previous six months, has been discharged from a regional treatment center, 
286.28 	or a state-contracted psychiatric bed in a community hospital, or a residential mental 
286.29 	health or chemical dependency treatment program. If a person meets the requirements of 
286.30 	subdivision 1, paragraph (a), and receives a federal or state housing subsidy, the group 
286.31 	residential housing rate for that person is limited to the supplementary rate under section 
286.32 	256I.05, subdivision 1a, and is determined by subtracting the amount of the person's 
286.33 	countable income that exceeds the MSA equivalent rate from the group residential housing 
286.34 	supplementary rate. A resident in a demonstration project site who no longer participates 
286.35 	in the demonstration program shall retain eligibility for a group residential housing 
287.1 	payment in an amount determined under section 256I.06, subdivision 8, using the MSA 
287.2 	equivalent rate. Service funding under section 256I.05, subdivision 1a, will end June 30, 
287.3 	1997, if federal matching funds are available and the services can be provided through 
287.4 	a managed care entity. If federal matching funds are not available, then service funding 
287.5 	will continue under section 256I.05, subdivision 1a; or (6) (5) for group residential 
287.6 	housing beds in settings meeting the requirements of subdivision 2a, clauses (1) and (3), 
287.7 	which are used exclusively for recipients receiving home and community-based waiver 
287.8 	services under sections 256B.0915, 256B.092, subdivision 5, 256B.093, and 256B.49, 
287.9 	and who resided in a nursing facility for the six months immediately prior to the month 
287.10 	of entry into the group residential housing setting. The group residential housing rate 
287.11 	for these beds must be set so that the monthly group residential housing payment for 
287.12 	an individual occupying the bed when combined with the nonfederal share of services 
287.13 	delivered under the waiver for that person does not exceed the nonfederal share of the 
287.14 	monthly medical assistance payment made for the person to the nursing facility in which 
287.15 	the person resided prior to entry into the group residential housing establishment. The 
287.16 	rate may not exceed the MSA equivalent rate plus $426.37 for any case.; or (6) for an 
287.17 	additional two beds, resulting in a total of 32 beds, for a facility located in Hennepin 
287.18 	County providing services for recovering and chemically dependent men that has had a 
287.19 	group residential housing contract with the county and has been licensed as a board and 
287.20 	lodge facility with special services since 1980; (7) for a group residential housing provider 
287.21 	located in Stearns County that operates a 40-bed facility, that received financing through 
287.22 	the Minnesota Housing Finance Agency Ending Long-Term Homelessness Initiative and 
287.23 	serves chemically dependent clientele, providing 24-hour-a-day supervision; and (8) for a 
287.24 	new 65-bed facility in Crow Wing County that will serve chemically dependent persons, 
287.25 	operated by a group residential housing provider that currently operates a 304-bed facility 
287.26 	in Minneapolis, and a 44-bed facility in Duluth.
287.27 	(b) A county agency may enter into a group residential housing agreement for beds 
287.28 	with rates in excess of the MSA equivalent rate in addition to those currently covered 
287.29 	under a group residential housing agreement if the additional beds are only a replacement 
287.30 	of beds with rates in excess of the MSA equivalent rate which have been made available 
287.31 	due to closure of a setting, a change of licensure or certification which removes the beds 
287.32 	from group residential housing payment, or as a result of the downsizing of a group 
287.33 	residential housing setting. The transfer of available beds from one county to another can 
287.34 	only occur by the agreement of both counties.

288.1 	Sec. 71. Minnesota Statutes 2006, section 256I.05, is amended by adding a subdivision 
288.2 	to read:
288.3 		Subd. 1h.Supplementary rate for certain facilities serving chemically 
288.4 	dependent males. Notwithstanding subdivisions 1a and 1c, beginning July 1, 2007, a 
288.5 	county agency shall negotiate a supplementary rate in addition to the rate specified in 
288.6 	subdivision 1, not to exceed $737.87 per month, including any legislatively authorized 
288.7 	inflationary adjustments, for a group residential housing provider that:
288.8 	(1) is located in Ramsey County and has had a group residential housing contract 
288.9 	with the county since 1982 and has been licensed as a board and lodge facility with special 
288.10 	services since 1979; and
288.11 	(2) serves recovering and chemically dependent males, providing 24-hour-a-day 
288.12 	supervision.

288.13 	Sec. 72. Minnesota Statutes 2006, section 256I.05, is amended by adding a subdivision 
288.14 	to read:
288.15 		Subd. 1i.Supplementary rate for certain facilities; Hennepin County.
 288.16 	Notwithstanding the provisions of subdivisions 1a and 1c, a county agency shall negotiate 
288.17 	a supplementary rate in addition to the rate specified in subdivision 1, not to exceed $700 
288.18 	per month, including any legislatively authorized inflationary adjustments, for a facility 
288.19 	located in Hennepin County with a capacity of up to 48 beds that has been licensed since 
288.20 	1978 as a board and lodging facility and that until August 1, 2007, operated as a licensed 
288.21 	chemical dependency treatment program.

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

288.23 	Sec. 73. Minnesota Statutes 2006, section 256I.05, is amended by adding a subdivision 
288.24 	to read:
288.25 		Subd. 1j.Supplementary rate for certain facilities; Crow Wing County.
 288.26 	Notwithstanding the provisions of subdivisions 1a and 1c, beginning July 1, 2007, a 
288.27 	county agency shall negotiate a supplementary rate in addition to the rate specified in 
288.28 	subdivision 1, not to exceed $700 per month, including any legislatively authorized 
288.29 	inflationary adjustments, for a new 65-bed facility in Crow Wing County that will serve 
288.30 	chemically dependent persons operated by a group residential housing provider that 
288.31 	currently operates a 304-bed facility in Minneapolis and a 44-bed facility in Duluth which 
288.32 	opened in January of 2006.

289.1 	Sec. 74. Minnesota Statutes 2006, section 256I.05, is amended by adding a subdivision 
289.2 	to read:
289.3 		Subd. 1k.Supplementary rate for certain facilities; Stearns County.
 289.4 	Notwithstanding the provisions of this section, beginning July 1, 2007, a county agency 
289.5 	shall negotiate a supplementary service rate in addition to the rate specified in subdivision 
289.6 	1, not to exceed $700 per month, including any legislatively authorized inflationary 
289.7 	adjustments, for a group residential housing provider located in Stearns County that 
289.8 	operates a 40-bed facility, that received financing through the Minnesota Housing Finance 
289.9 	Agency Ending Long-Term Homelessness Initiative and serves chemically dependent 
289.10 	clientele, providing 24-hour-a-day supervision.

289.11 	Sec. 75. Minnesota Statutes 2006, section 256I.05, is amended by adding a subdivision 
289.12 	to read:
289.13 		Subd. 1l.Supplementary rate for certain facilities; St. Louis County.
 289.14 	Notwithstanding the provisions of this section, beginning July 1, 2007, a county agency 
289.15 	shall negotiate a supplementary service rate in addition to the rate specified in subdivision 
289.16 	1, not to exceed $700 per month, including any legislatively authorized inflationary 
289.17 	adjustments, for a group residential housing provider located in St. Louis County that 
289.18 	operates a 30-bed facility, that received financing through the Minnesota Housing Finance 
289.19 	Agency Ending Long-Term Homelessness Initiative and serves chemically dependent 
289.20 	clientele, providing 24-hour-a-day supervision. 

289.21 	Sec. 76. Minnesota Statutes 2006, section 256I.05, is amended by adding a subdivision 
289.22 	to read:
289.23 		Subd. 1m.Supplemental rate for certain facilities; Hennepin and Ramsey 
289.24 	Counties. (a) Notwithstanding the provisions of this section, beginning July 1, 2007, a 
289.25 	county agency shall negotiate a supplemental service rate in addition to the rate specified 
289.26 	in subdivision 1, not to exceed $700 per month or the existing monthly rate, whichever 
289.27 	is higher, including any legislatively authorized inflationary adjustments, for a group 
289.28 	residential housing provider that operates two ten-bed facilities, one located in Hennepin 
289.29 	County and one located in Ramsey County, which provide community support and serve 
289.30 	the mental health needs of individuals who have chronically lived unsheltered, providing 
289.31 	24-hour per day supervision.
289.32 	(b) An individual who has lived in one of the facilities under paragraph (a), who 
289.33 	is being transitioned to independent living as part of the program plan continues to be 
290.1 	eligible for group residential housing and the supplemental service rate negotiated with 
290.2 	the county under paragraph (a).

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

290.4 	Sec. 77. Minnesota Statutes 2006, section 462A.05, is amended by adding a 
290.5 	subdivision to read:
290.6 		Subd. 42.Reverse mortgage incentive program. (a) The agency shall, within the 
290.7 	limits of appropriations made available for this purpose, establish, in cooperation with 
290.8 	the commissioner of human services, a program to encourage eligible persons to obtain 
290.9 	reverse mortgages to pay for eligible costs of maintaining the person in the home as an 
290.10 	alternative to a nursing facility placement. 
290.11 	(b) The incentive program shall be made available to a person who has been 
290.12 	determined by the commissioner of human services or the commissioner's designated 
290.13 	agent to meet all of the following criteria:
290.14 	(1) is age 62 or older; 
290.15 	(2) would be eligible for medical assistance within 365 days of admission to a 
290.16 	nursing home;
290.17 	(3) is not a medical assistance recipient, is not eligible for medical assistance without 
290.18 	a spenddown or waiver obligation, is not ineligible for the medical assistance program due 
290.19 	to an asset transfer penalty, and does not have income greater than the maintenance needs 
290.20 	allowance under section 256B.0915, subdivision 1d, but equal to or less than 120 percent 
290.21 	of the federal poverty guidelines effective July 1 in the year for which program eligibility 
290.22 	is established, who would be eligible for the elderly waiver with a waiver obligation; 
290.23 	(4) needs services that are not funded through other state or federal funding for 
290.24 	which the person qualifies; 
290.25 	(5) obtains a reverse mortgage loan under section 47.58 on a home with an estimated 
290.26 	market value not to exceed $156,000. This limit shall be adjusted annually on April 1 
290.27 	by the percentage change for the previous calendar year in the housing component of the 
290.28 	United States Consumer Price Index - all urban consumers; and 
290.29 	(6) agrees to make expenditures of reverse mortgage payments according to a 
290.30 	spending plan established under section 256B.0911, subdivision 3a, in which payments, 
290.31 	services, and supports meet the following standards: 
290.32 	(i) payments received under the loan for a period of at least 24 months or in an 
290.33 	amount of at least $15,000 are used for services and supports, including basic shelter 
290.34 	needs, home maintenance, and modifications or adaptations, necessary to allow the person 
290.35 	to remain in the home as an alternative to a nursing facility placement; 
291.1 	(ii) reimbursements for services, supplies, and equipment shall not exceed the 
291.2 	market rate; and 
291.3 	(iii) if the person's spouse qualifies under section 256B.0913, subdivisions 1 to 14, 
291.4 	the reverse mortgage payments may be used to pay client fees under that section. 
291.5 	(c) The incentives available under this program shall include: 
291.6 	(1) payment of the initial mortgage insurance premium for a reverse mortgage. 
291.7 	The maximum payment under this clause shall be limited to $1,560. This limit shall be 
291.8 	adjusted annually on April 1 by the percentage change for the previous calendar year in 
291.9 	the housing component of the United States Consumer Price Index - all urban consumers;
291.10 	(2) with federal approval, payments to reduce service fee set-asides, through an 
291.11 	advance payment to the lender, an agreement to guarantee fee payments after 60 months 
291.12 	if the set-aside is limited to 60 months, or through other mechanisms approved by the 
291.13 	commissioner; and  
291.14 	(3) other incentives approved by the commissioner. 
291.15 	(d) After calculating the adjusted maximum payment limits under paragraphs (b) 
291.16 	and (c), the commissioner shall annually notify the Office of the Revisor of Statutes in 
291.17 	writing, on or before May 1, of the adjusted limits. The revisor shall annually publish in 
291.18 	the Minnesota Statutes the adjusted maximum payment limits under paragraph (b).

291.19 	Sec. 78. Laws 2006, chapter 282, article 20, section 37, is amended to read:
291.20 	Sec. 37. REPAYMENT DELAY.
 291.21 	(a) A county that overspent its allowed amounts in calendar year 2004 or 2005 under 
291.22 	the waivered services program for persons with developmental disabilities shall not be 
291.23 	required to pay back the amount of overspending until May 31, 2007. This section applies 
291.24 	to Fillmore, Steele, and St. Louis Counties.
291.25 	(b) Carver County is not required to pay back the amount of overspending under 
291.26 	the waivered services program for persons with developmental disabilities for calendar 
291.27 	years 2004 and 2005 until June 30, 2009.

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

291.29 	Sec. 79. ASSISTIVE TECHNOLOGY RECOMMENDATIONS.
 291.30 		Subdivision 1.Review. During the biennium ending June 30, 2009, the Council on 
291.31 	Disability shall facilitate a statewide review of the assistive technology needs of people 
291.32 	with disabling conditions, and seniors. The council shall identify community-based 
291.33 	service providers, state agencies, and other entities involved in providing assistive 
291.34 	technology supports.
292.1 		Subd. 2.Recommendations. The council shall present to the chairs of the house 
292.2 	and senate committees having jurisdiction over human services, by January 1, 2009, 
292.3 	recommendations, including proposed legislation creating a statewide comprehensive plan 
292.4 	to meet the assistive technology needs of people with disabling conditions and seniors. 
292.5 	The statewide plan must include steps to coordinate and streamline assistive technology 
292.6 	services.

292.7 	Sec. 80. PROVIDER RATE INCREASES.
 292.8 	(a) The commissioner of human services shall increase allocations, reimbursement 
292.9 	rates, or rate limits, as applicable, by 3.00 percent beginning October 1, 2007, and by 3.00 
292.10 	percent beginning October 1, 2008, effective for services rendered on or after those dates. 
292.11 	County contracts for services specified in this section must be amended to pass through 
292.12 	these rate adjustments within 60 days of the effective date of the increase and must be 
292.13 	retroactive from the effective date of the rate adjustment.
292.14 	(b) The annual rate increases described in this section must be provided to: 
292.15 	(1) home and community-based waivered services for persons with developmental 
292.16 	disabilities or related conditions, including consumer-directed community supports, under 
292.17 	Minnesota Statutes, section 256B.501; 
292.18 	(2) home and community-based waivered services for the elderly, including 
292.19 	consumer-directed community supports, under Minnesota Statutes, section 256B.0915; 
292.20 	(3) waivered services under community alternatives for disabled individuals, 
292.21 	including consumer-directed community supports, under Minnesota Statutes, section 
292.22 	256B.49; 
292.23 	(4) community alternative care waivered services, including consumer-directed 
292.24 	community supports, under Minnesota Statutes, section 256B.49; 
292.25 	(5) traumatic brain injury waivered services, including consumer-directed 
292.26 	community supports, under Minnesota Statutes, section 256B.49; 
292.27 	(6) nursing services and home health services under Minnesota Statutes, section 
292.28 	256B.0625, subdivision 6a; 
292.29 	(7) personal care services and qualified professional supervision of personal care 
292.30 	services under Minnesota Statutes, section 256B.0625, subdivision 19a; 
292.31 	(8) private duty nursing services under Minnesota Statutes, section 256B.0625, 
292.32 	subdivision 7; 
292.33 	(9) day training and habilitation services for adults with developmental disabilities 
292.34 	or related conditions under Minnesota Statutes, sections 252.40 to 252.46, including the 
293.1 	additional cost of rate adjustments on day training and habilitation services, provided as a 
293.2 	social service under Minnesota Statutes, section 256M.60; 
293.3 	(10) alternative care services under Minnesota Statutes, section 256B.0913; 
293.4 	(11) adult residential program grants under Minnesota Statutes, section 245.73;
293.5 	(12) children's community-based mental health services grants and adult community 
293.6 	support and case management services grants under Minnesota Rules, parts 9535.1700 
293.7 	to 9535.1760; 
293.8 	(13) the group residential housing supplementary service rate under Minnesota 
293.9 	Statutes, section 256I.05, subdivision 1a; 
293.10 	(14) adult mental health integrated fund grants under Minnesota Statutes, section 
293.11 	245.4661;
293.12 	(15) semi-independent living services (SILS) under Minnesota Statutes, section 
293.13 	252.275, including SILS funding under county social services grants formerly funded 
293.14 	under Minnesota Statutes, chapter 256I; 
293.15 	(16) community support services for deaf and hard-of-hearing adults with mental 
293.16 	illness who use or wish to use sign language as their primary means of communication 
293.17 	under Minnesota Statutes, section 256.01, subdivision 2; and deaf and hard-of-hearing 
293.18 	grants under Minnesota Statutes, sections 256C.233 and 256C.25; Laws 1985, chapter 9, 
293.19 	article 1; and Laws 1997, First Special Session chapter 5, section 20; 
293.20 	(17) living skills training programs for persons with intractable epilepsy who need 
293.21 	assistance in the transition to independent living under Laws 1988, chapter 689; 
293.22 	(18) physical therapy services under sections 256B.0625, subdivision 8, and 
293.23 	256D.03, subdivision 4; 
293.24 	(19) occupational therapy services under sections 256B.0625, subdivision 8a, and 
293.25 	256D.03, subdivision 4; 
293.26 	(20) speech-language therapy services under section 256D.03, subdivision 4, and 
293.27 	Minnesota Rules, part 9505.0390; 
293.28 	(21) respiratory therapy services under section 256D.03, subdivision 4, and 
293.29 	Minnesota Rules, part 9505.0295; 
293.30 	(22) adult rehabilitative mental health services under section 256B.0623;
293.31 	(23) children's therapeutic services and support services under section 256B.0943;
293.32 	(24) tier I chemical health services under Minnesota Statutes, chapter 254B;
293.33 	(25) consumer support grants under Minnesota Statutes, section 256.476;
293.34 	(26) family support grants under Minnesota Statutes, section 252.32; 
293.35 	(27) grants for case management services to persons with HIV or AIDS under 
293.36 	Minnesota Statutes, section 256.01, subdivision 19; and 
294.1 	(28) aging grants under Minnesota Statutes, sections 256.975 to 256.977, 256B.0917, 
294.2 	and 256B.0928.
294.3 	(c) For services funded through Minnesota disability health options, the rate 
294.4 	increases under this section apply to all medical assistance payments, including former 
294.5 	group residential housing supplementary rates under Minnesota Statutes, chapter 256I.
294.6 	(d) The commissioner may recoup payments made under this section from a provider 
294.7 	that does not comply with paragraphs (f) and (g).
294.8 	(e) A managed care plan receiving state payments for the services in this section 
294.9 	must include these increases in their payments to providers on a prospective basis, 
294.10 	effective on January 1 following the effective date of the rate increase.
294.11 	(f) Providers that receive a rate increase under this section shall use 75 percent of 
294.12 	the additional revenue to increase compensation-related costs for employees directly 
294.13 	employed by the program on or after the effective date of the rate adjustments, except: 
294.14 	(1) the administrator;
294.15 	(2) persons employed in the central office of a corporation or entity that has an 
294.16 	ownership interest in the provider or exercises control over the provider; and 
294.17 	(3) persons paid by the provider under a management contract.
294.18 	Compensation-related costs include: wages and salaries; FICA taxes, Medicare taxes, 
294.19 	state and federal unemployment taxes, and workers' compensation; and the employer's 
294.20 	share of health and dental insurance, life insurance, disability insurance, long-term care 
294.21 	insurance, uniform allowance, and pensions.
294.22 	(g) Two-thirds of the money available under paragraph (f) must be used for wage 
294.23 	increases for all employees directly employed by the provider on or after the effective date 
294.24 	of the rate adjustments, except those listed in paragraph (f), clauses (1) to (3). The wage 
294.25 	adjustment that employees receive under this paragraph must be paid as an equal hourly 
294.26 	percentage wage increase for all eligible employees. This paragraph shall not apply to:
294.27 	(1) employees eligible for a Taft-Hartley insurance plan established under United 
294.28 	States Code, title 29, section 186(c)(5); or 
294.29 	(2) public employees.
294.30 	(h) For public employees, the increase for wages and benefits for certain staff is 
294.31 	available and pay rates must be increased only to the extent that they comply with laws 
294.32 	governing public employees collective bargaining. Money received by a provider for pay 
294.33 	increases under this section may be used only for increases implemented on or after the 
294.34 	first day of the rate period in which the increase is available and must not be used for 
294.35 	increases implemented prior to that date. 
295.1 	(i) The commissioner shall amend state grant contracts that include direct 
295.2 	personnel-related grant expenditures to include the allocation for the portion of the contract 
295.3 	that is employee compensation related. Grant contracts for compensation-related services 
295.4 	must be amended to pass through these adjustments within 60 days of the effective date of 
295.5 	the increase and must be retroactive to the effective date of the rate adjustment.
295.6 	(j) The Board on Aging and its Area Agencies on Aging shall amend their 
295.7 	grants that include direct personnel-related grant expenditures to include the rate 
295.8 	adjustment for the portion of the grant that is employee compensation related. Grants 
295.9 	for compensation-related services must be amended to pass through these adjustments 
295.10 	within 60 days of the effective date of the increase and must be retroactive to the effective 
295.11 	date of the rate adjustment.
295.12 	(k) The calendar year 2008 rate for vendors reimbursed under Minnesota Statutes, 
295.13 	chapter 254B, shall be at least 3.0 percent above the rate in effect on January 1, 2007. The 
295.14 	calendar year 2009 rate shall be at least 3.0 percent above the rate in effect on January 
295.15 	1, 2008.
295.16 	(l) Providers that receive a rate adjustment under paragraph (a) that is subject to 
295.17 	paragraphs (f) and (g) shall provide to the commissioner, and those counties with whom 
295.18 	they have a contract, within six months after the effective date of each rate adjustment, a 
295.19 	letter, in a format specified by the commissioner, that provides assurances that the provider 
295.20 	has developed and implemented a compensation plan and complied with paragraphs (f) 
295.21 	and (g). The provider shall keep on file, and produce for the commissioner or county 
295.22 	upon request, its plan, which must specify:
295.23 	(1) an estimate of the amounts of money that must be used as specified in paragraphs 
295.24 	(f) and (g); and 
295.25 	(2) a detailed distribution plan specifying the allowable compensation-related and 
295.26 	wage increases the provider will implement to use the funds available in clause (1).
295.27 	(m) Within six months after the effective date of each rate adjustment, the provider 
295.28 	shall post this plan, excluding the information required in paragraph (l), clause (1), for 
295.29 	a period of at least six weeks in an area of the provider's operation to which all eligible 
295.30 	employees have access and provide instructions for employees who believe they have 
295.31 	not received the wage and other compensation-related increases specified in paragraph 
295.32 	(l), clause (2). Instructions must include a mailing address, e-mail address, and the 
295.33 	telephone number that may be used by the employee to contact the commissioner or the 
295.34 	commissioner's representative. Providers shall also make assurances to the commissioner 
295.35 	and counties with whom they have a contract that they have complied with the requirement 
295.36 	in this paragraph.

296.1 	Sec. 81. MINNESOTA RULES.
 296.2 	The Department of Administration shall publish adopted rules in the State Register 
296.3 	making the terminology changes specified in section 84 in Minnesota Rules. Upon 
296.4 	publication in the State Register, the terminology changes for Minnesota Rules are 
296.5 	adopted without further administrative action.

296.6 	Sec. 82. HOUSING WITH SERVICES AND HOME CARE PROVIDERS 
296.7 	STUDY; REPORT.
 296.8 	The commissioner of human services shall conduct a study of housing with services 
296.9 	establishments and their arranged home care providers to assess the impact that spending 
296.10 	down to eligibility for public programs by residents who are age 65 or older has on 
296.11 	public expenditures. The preliminary results of this study shall be reported to the house 
296.12 	and senate committees with jurisdiction over health and human services policy and 
296.13 	finance issues by February 15, 2008, with a final report completed by December 15, 2008. 
296.14 	Housing with services establishments and home care providers shall provide information 
296.15 	upon request of the commissioner in order to achieve study outcomes, including:
296.16 	(1) length of stay of residents in the housing with services establishment;
296.17 	(2) housing and services provided and related charges, payments, and payment 
296.18 	sources;
296.19 	(3) housing and services included in base rates charged to all residents;
296.20 	(4) reasons for termination of services;
296.21 	(5) reasons for termination of leases;
296.22 	(6) copies of contracts, agreements, and leases;
296.23 	(7) resident demographics; and
296.24 	(8) other information as requested by the commissioner.

296.25 	Sec. 83. PROVIDER RATE INCREASE.
 296.26 	Effective July 1, 2007, a day training and habilitation provider in St. Louis County 
296.27 	providing services for up to 80 individuals shall have a reimbursement rate that equals 94 
296.28 	percent of 125 percent of the statewide median per diem.

296.29 	Sec. 84. REVISOR'S INSTRUCTION.
 296.30 	The revisor of statutes shall change the terms in column A to the terms in column B 
296.31 	wherever they appear in Minnesota Statutes:

297.1		Column A
		Column B
	
297.2
297.3
297.4
297.5
297.6		"Office of Ombudsman 
for Older Minnesotans" 
and "Office of the 
Ombudsman for Older 
Minnesotans"
		"Office of Ombudsman 
for Long-Term Care"
	
297.7
297.8		"ombudsman for older 
Minnesotans"
		"ombudsman for 
long-term care"

297.9 	Sec. 85. REPEALER.
 297.10 	Minnesota Statutes 2006, sections 252.21; 252.22; 252.23; 252.24; 252.25; 252.261; 
297.11 	252.275, subdivision 5; 256.9743; 256B.0913, subdivisions 5b, 5c, 5d, 5e, 5f, 5g, and 5h; 
297.12 	and 256B.441, subdivisions 12, 16, 21, 26, 28, 42, and 45, are repealed.

297.13 	ARTICLE 8
297.14 	MENTAL HEALTH

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

297.24 	Sec. 2. Minnesota Statutes 2006, section 148C.11, subdivision 1, is amended to read:
297.25 		Subdivision 1.Other professionals. (a) Nothing in this chapter prevents members 
297.26 	of other professions or occupations from performing functions for which they are qualified 
297.27 	or licensed. This exception includes, but is not limited to: licensed physicians; registered 
297.28 	nurses; licensed practical nurses; licensed psychological practitioners; members of 
297.29 	the clergy; American Indian medicine men and women; licensed attorneys; probation 
297.30 	officers; licensed marriage and family therapists; licensed social workers; social workers 
297.31 	employed by city, county, or state agencies; licensed professional counselors; licensed 
297.32 	school counselors; registered occupational therapists or occupational therapy assistants; 
297.33 	city, county, or state employees when providing assessments or case management under 
297.34 	Minnesota Rules, chapter 9530; and until July 1, 2007 2009, individuals providing 
298.1 	integrated dual-diagnosis treatment in adult mental health rehabilitative programs certified 
298.2 	by the Department of Human Services under section 256B.0622 or 256B.0623.
298.3 	(b) Nothing in this chapter prohibits technicians and resident managers in programs 
298.4 	licensed by the Department of Human Services from discharging their duties as provided 
298.5 	in Minnesota Rules, chapter 9530.
298.6 	(c) Any person who is exempt under this subdivision but who elects to obtain a 
298.7 	license under this chapter is subject to this chapter to the same extent as other licensees. 
298.8 	The board shall issue a license without examination to an applicant who is licensed or 
298.9 	registered in a profession identified in paragraph (a) if the applicant:
298.10 	(1) shows evidence of current licensure or registration; and
298.11 	(2) has submitted to the board a plan for supervision during the first 2,000 hours of 
298.12 	professional practice or has submitted proof of supervised professional practice that is 
298.13 	acceptable to the board.
298.14 	(d) Any person who is exempt from licensure under this section must not use a 
298.15 	title incorporating the words "alcohol and drug counselor" or "licensed alcohol and drug 
298.16 	counselor" or otherwise hold themselves out to the public by any title or description 
298.17 	stating or implying that they are engaged in the practice of alcohol and drug counseling, 
298.18 	or that they are licensed to engage in the practice of alcohol and drug counseling unless 
298.19 	that person is also licensed as an alcohol and drug counselor. Persons engaged in the 
298.20 	practice of alcohol and drug counseling are not exempt from the board's jurisdiction 
298.21 	solely by the use of one of the above titles.

298.22 	Sec. 3. Minnesota Statutes 2006, section 245.462, subdivision 20, is amended to read:
298.23 		Subd. 20.Mental illness. (a) "Mental illness" means an organic disorder of the 
298.24 	brain or a clinically significant disorder of thought, mood, perception, orientation, 
298.25 	memory, or behavior that is listed in the clinical manual of the International Classification 
298.26 	of Diseases (ICD-9-CM), current edition, code range 290.0 to 302.99 or 306.0 to 316.0 
298.27 	or the corresponding code in the American Psychiatric Association's Diagnostic and 
298.28 	Statistical Manual of Mental Disorders (DSM-MD), current edition, Axes I, II, or III, and 
298.29 	that seriously limits a person's capacity to function in primary aspects of daily living such 
298.30 	as personal relations, living arrangements, work, and recreation. 
298.31 	(b) An "adult with acute mental illness" means an adult who has a mental illness that 
298.32 	is serious enough to require prompt intervention.
298.33 	(c) For purposes of case management and community support services, a "person 
298.34 	with serious and persistent mental illness" means an adult who has a mental illness and 
298.35 	meets at least one of the following criteria:
299.1 	(1) the adult has undergone two or more episodes of inpatient care for a mental 
299.2 	illness within the preceding 24 months;
299.3 	(2) the adult has experienced a continuous psychiatric hospitalization or residential 
299.4 	treatment exceeding six months' duration within the preceding 12 months;
299.5 	(3) the adult has been treated by a crisis team two or more times within the preceding 
299.6 	24 months;
299.7 	(4) the adult:
299.8 	(i) has a diagnosis of schizophrenia, bipolar disorder, major depression, or borderline 
299.9 	personality disorder;
299.10 	(ii) indicates a significant impairment in functioning; and
299.11 	(iii) has a written opinion from a mental health professional, in the last three years, 
299.12 	stating that the adult is reasonably likely to have future episodes requiring inpatient or 
299.13 	residential treatment, of a frequency described in clause (1) or (2), unless ongoing case 
299.14 	management or community support services are provided;
299.15 	(4) (5) the adult has, in the last three years, been committed by a court as a person 
299.16 	who is mentally ill under chapter 253B, or the adult's commitment has been stayed or 
299.17 	continued; or
299.18 	(5) (6) the adult (i) was eligible under clauses (1) to (4) (5), but the specified time 
299.19 	period has expired or the adult was eligible as a child under section 245.4871, subdivision 
299.20 	6; and (ii) has a written opinion from a mental health professional, in the last three years, 
299.21 	stating that the adult is reasonably likely to have future episodes requiring inpatient or 
299.22 	residential treatment, of a frequency described in clause (1) or (2), unless ongoing case 
299.23 	management or community support services are provided. 

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

299.29 	Sec. 5. [245.4682] MENTAL HEALTH SERVICE DELIVERY AND FINANCE 
299.30 	REFORM.
299.31 		Subdivision 1.Policy. The commissioner of human services shall undertake a series 
299.32 	of reforms to address the underlying structural, financial, and organizational problems in 
299.33 	Minnesota's mental health system with the goal of improving the availability, quality, and 
299.34 	accountability of mental health care within the state.
300.1 		Subd. 2.General provisions. (a) In the design and implementation of reforms to 
300.2 	the mental health system, the commissioner shall:
300.3 	(1) consult with consumers, families, counties, tribes, advocates, providers, and 
300.4 	other stakeholders;
300.5 	(2) bring to the legislature, and the State Advisory Council on Mental Health, by 
300.6 	January 15, 2008, recommendations for legislation to update the role of counties and to 
300.7 	clarify the case management roles, functions, and decision-making authority of health 
300.8 	plans and counties, and to clarify county retention of the responsibility for the delivery of 
300.9 	social services as required under subdivision 3, paragraph (a);
300.10 	(3) withhold implementation of any recommended changes in case management 
300.11 	roles, functions, and decision-making authority until after the release of the report due 
300.12 	January 15, 2008;
300.13 	(4) ensure continuity of care for persons affected by these reforms including 
300.14 	ensuring client choice of provider by requiring broad provider networks and developing 
300.15 	mechanisms to facilitate a smooth transition of service responsibilities;
300.16 	(5) provide accountability for the efficient and effective use of public and private 
300.17 	resources in achieving positive outcomes for consumers;
300.18 	(6) ensure client access to applicable protections and appeals; and
300.19 	(7) make budget transfers necessary to implement the reallocation of services and 
300.20 	client responsibilities between counties and health care programs that do not increase the 
300.21 	state and county costs and efficiently allocate state funds.
300.22 	(b) When making transfers under paragraph (a) necessary to implement movement 
300.23 	of responsibility for clients and services between counties and health care programs, 
300.24 	the commissioner, in consultation with counties, shall ensure that any transfer of state 
300.25 	grants to health care programs, including the value of case management transfer grants 
300.26 	under section 256B.0625, subdivision 20, does not exceed the value of the services being 
300.27 	transferred for the latest 12-month period for which data is available. The commissioner 
300.28 	may make quarterly adjustments based on the availability of additional data during the 
300.29 	first four quarters after the transfers first occur. If case management transfer grants under 
300.30 	section 256B.0625, subdivision 20, are repealed and the value, based on the last year prior 
300.31 	to repeal, exceeds the value of the services being transferred, the difference becomes an 
300.32 	ongoing part of each county's adult and children's mental health grants under sections 
300.33 	245.4661, 245.4889, and 256E.12.
300.34 	(c) This appropriation is not authorized to be expended after December 31, 2010, 
300.35 	unless approved by the legislature.
301.1 		Subd. 3.Projects for coordination of care. (a) Consistent with section 256B.69 
301.2 	and chapters 256D and 256L, the commissioner is authorized to solicit, approve, and 
301.3 	implement up to three projects to demonstrate the integration of physical and mental 
301.4 	health services within prepaid health plans and their coordination with social services. 
301.5 	The commissioner shall require that each project be based on locally defined partnerships 
301.6 	that include at least one health maintenance organization, community integrated service 
301.7 	network, or accountable provider network authorized and operating under chapter 62D, 
301.8 	62N, or 62T, or county-based purchasing entity under section 256B.692 that is eligible to 
301.9 	contract with the commissioner as a prepaid health plan, and the county or counties within 
301.10 	the service area. Counties shall retain responsibility and authority for social services in 
301.11 	these locally defined partnerships.
301.12 	(b) The commissioner, in consultation with consumers, families, and their 
301.13 	representatives, shall:
301.14 	(1) determine criteria for approving the projects and use those criteria to solicit 
301.15 	proposals for preferred integrated networks. The commissioner must develop criteria to 
301.16 	evaluate the partnership proposed by the county and prepaid health plan to coordinate 
301.17 	access and delivery of services. The proposal must at a minimum address how the 
301.18 	partnership will coordinate the provision of:
301.19 	(i) client outreach and identification of health and social service needs paired with 
301.20 	expedited access to appropriate resources;
301.21 	(ii) activities to maintain continuity of health care coverage;
301.22 	(iii) children's residential mental health treatment and treatment foster care;
301.23 	(iv) court-ordered assessments and treatments;
301.24 	(v) prepetition screening and commitments under chapter 253B;
301.25 	(vi) assessment and treatment of children identified through mental health screening 
301.26 	of child welfare and juvenile corrections cases;
301.27 	(vii) home and community-based waiver services;
301.28 	(viii) assistance with finding and maintaining employment;
301.29 	(ix) housing; and
301.30 	(x) transportation;
301.31 	(2) determine specifications for contracts with prepaid health plans to improve the 
301.32 	plan's ability to serve persons with mental health conditions, including specifications 
301.33 	addressing:
301.34 	(i) early identification and intervention of physical and behavioral health problems;
301.35 	(ii) communication between the enrollee and the health plan;
302.1 	(iii) facilitation of enrollment for persons who are also eligible for a Medicare 
302.2 	special needs plan offered by the health plan;
302.3 	(iv) risk screening procedures;
302.4 	(v) health care coordination;
302.5 	(vi) member services and access to applicable protections and appeal processes;
302.6 	(vii) specialty provider networks;
302.7 	(viii) transportation services;
302.8 	(ix) treatment planning; and
302.9 	(x) administrative simplification for providers;
302.10 	(3) begin implementation of the projects no earlier than January 1, 2009, with not 
302.11 	more than 40 percent of the statewide population  included during calendar year 2009 and 
302.12 	additional counties included in subsequent years;
302.13 	(4) waive any administrative rule not consistent with the implementation of the 
302.14 	projects;
302.15 	(5) allow potential bidders at least 90 days to respond to the request for proposals; 
302.16 	and
302.17 	(6) conduct an independent evaluation to determine if mental health outcomes have 
302.18 	improved in that county or counties according to measurable standards designed in 
302.19 	consultation with the advisory body established under this subdivision and reviewed by 
302.20 	the State Advisory Council on Mental Health.
302.21 	(c) Notwithstanding any statute or administrative rule to the contrary, the 
302.22 	commissioner may enroll all persons eligible for medical assistance with serious mental 
302.23 	illness or emotional disturbance in the prepaid plan of their choice within the project 
302.24 	service area unless:
302.25 	(1) the individual is eligible for home and community-based services for persons 
302.26 	with developmental disabilities and related conditions under section 256B.092; or
302.27 	(2) the individual has a basis for exclusion from the prepaid plan under section 
302.28 	256B.69, subdivision 4, other than disability, mental illness, or emotional disturbance.
302.29 	(d) The commissioner shall involve organizations representing persons with mental 
302.30 	illness and their families in the development and distribution of information used to 
302.31 	educate potential enrollees regarding their options for health care and mental health 
302.32 	service delivery under this subdivision.
302.33 	(e) If the person described in paragraph (c) does not elect to remain in fee-for-service 
302.34 	medical assistance, or declines to choose a plan, the commissioner may preferentially 
302.35 	assign that person to the prepaid plan participating in the preferred integrated network. 
303.1 	The commissioner shall implement the enrollment changes within a project's service area 
303.2 	on the timeline specified in that project's approved application.
303.3 	(f) A person enrolled in a prepaid health plan under paragraphs (c) and (d) may 
303.4 	disenroll from the plan at any time.
303.5 	(g) The commissioner, in consultation with consumers, families, and their 
303.6 	representatives, shall evaluate the projects begun in 2009, and shall refine the design of the 
303.7 	service integration projects before expanding the projects. The commissioner shall report 
303.8 	to the chairs of the legislative committees with jurisdiction over mental health services 
303.9 	by March 1, 2008, on plans for evaluation of preferred integrated networks established 
303.10 	under this subdivision.
303.11 	(h) The commissioner shall apply for any federal waivers necessary to implement 
303.12 	these changes.
303.13 	(i) Payment for Medicaid service providers under this subdivision for the months of 
303.14 	May and June will be made no earlier than July 1 of the same calendar year.

303.15 	Sec. 6. Minnesota Statutes 2006, section 245.4712, subdivision 1, is amended to read:
303.16 		Subdivision 1.Availability of community support services. (a) County boards 
303.17 	must provide or contract for sufficient community support services within the county to 
303.18 	meet the needs of adults with serious and persistent mental illness who are residents of the 
303.19 	county. Adults may be required to pay a fee according to section 245.481. The community 
303.20 	support services program must be designed to improve the ability of adults with serious 
303.21 	and persistent mental illness to: 
303.22 	(1) work in a regular or supported work environment;
303.23 	(2) handle basic activities of daily living;
303.24 	(3) participate in leisure time activities;
303.25 	(4) set goals and plans; and
303.26 	(5) obtain and maintain appropriate living arrangements.
303.27 	The community support services program must also be designed to reduce the 
303.28 	need for and use of more intensive, costly, or restrictive placements both in number of 
303.29 	admissions and length of stay.
303.30 	(b) Community support services are those services that are supportive in nature and 
303.31 	not necessarily treatment oriented, and include:
303.32 	(1) conducting outreach activities such as home visits, health and wellness checks, 
303.33 	and problem solving;
303.34 	(2) connecting people to resources to meet their basic needs;
303.35 	(3) finding, securing, and supporting people in their housing;
304.1 	(4) attaining and maintaining health insurance benefits;
304.2 	(5) assisting with job applications, finding and maintaining employment, and 
304.3 	securing a stable financial situation;
304.4 	(6) fostering social support, including support groups, mentoring, peer support, and 
304.5 	other efforts to prevent isolation and promote recovery; and
304.6 	(7) educating about mental illness, treatment, and recovery.
304.7 	(c) Community support services shall use all available funding streams. The county 
304.8 	shall maintain the level of expenditures for this program, as required under section 
304.9 	245.4835. County boards must continue to provide funds for those services not covered 
304.10 	by other funding streams and to maintain an infrastructure to carry out these services.
304.11 	(d) The commissioner shall collect data on community support services programs, 
304.12 	including, but not limited to, demographic information such as age, sex, race, the number 
304.13 	of people served, and information related to housing, employment, hospitalization, 
304.14 	symptoms, and satisfaction with services.

304.15 	Sec. 7. Minnesota Statutes 2006, section 245.4874, is amended to read:
304.16 	245.4874 DUTIES OF COUNTY BOARD.
304.17 		Subdivision 1.Duties of the county board. (a) The county board must:
304.18 	(1) develop a system of affordable and locally available children's mental health 
304.19 	services according to sections 245.487 to 245.4887;
304.20 	(2) establish a mechanism providing for interagency coordination as specified in 
304.21 	section 245.4875, subdivision 6;
304.22 	(3) consider the assessment of unmet needs in the county as reported by the local 
304.23 	children's mental health advisory council under section 245.4875, subdivision 5, paragraph 
304.24 	(b), clause (3). The county shall provide, upon request of the local children's mental health 
304.25 	advisory council, readily available data to assist in the determination of unmet needs;
304.26 	(4) assure that parents and providers in the county receive information about how to 
304.27 	gain access to services provided according to sections 245.487 to 245.4887;
304.28 	(5) coordinate the delivery of children's mental health services with services 
304.29 	provided by social services, education, corrections, health, and vocational agencies to 
304.30 	improve the availability of mental health services to children and the cost-effectiveness of 
304.31 	their delivery;
304.32 	(6) assure that mental health services delivered according to sections 245.487
304.33 	to 245.4887 are delivered expeditiously and are appropriate to the child's diagnostic 
304.34 	assessment and individual treatment plan;
305.1 	(7) provide the community with information about predictors and symptoms of 
305.2 	emotional disturbances and how to access children's mental health services according to 
305.3 	sections 245.4877 and 245.4878;
305.4 	(8) provide for case management services to each child with severe emotional 
305.5 	disturbance according to sections 245.486; 245.4871, subdivisions 3 and 4; and 245.4881, 
305.6 	subdivisions 1, 3, and 5;
305.7 	(9) provide for screening of each child under section 245.4885 upon admission 
305.8 	to a residential treatment facility, acute care hospital inpatient treatment, or informal 
305.9 	admission to a regional treatment center;
305.10 	(10) prudently administer grants and purchase-of-service contracts that the county 
305.11 	board determines are necessary to fulfill its responsibilities under sections 245.487 to 
305.12 	245.4887;
305.13 	(11) assure that mental health professionals, mental health practitioners, and case 
305.14 	managers employed by or under contract to the county to provide mental health services 
305.15 	are qualified under section 245.4871;
305.16 	(12) assure that children's mental health services are coordinated with adult mental 
305.17 	health services specified in sections 245.461 to 245.486 so that a continuum of mental 
305.18 	health services is available to serve persons with mental illness, regardless of the person's 
305.19 	age;
305.20 	(13) assure that culturally informedcompetent mental health consultants are used as 
305.21 	necessary to assist the county board in assessing and providing appropriate treatment for 
305.22 	children of cultural or racial minority heritage; and
305.23 	(14) consistent with section 245.486, arrange for or provide a children's mental 
305.24 	health screening to a child receiving child protective services or a child in out-of-home 
305.25 	placement, a child for whom parental rights have been terminated, a child found to be 
305.26 	delinquent, and a child found to have committed a juvenile petty offense for the third or 
305.27 	subsequent time, unless a screening has been performed within the previous 180 days, or 
305.28 	the child is currently under the care of a mental health professional. The court or county 
305.29 	agency must notify a parent or guardian whose parental rights have not been terminated of 
305.30 	the potential mental health screening and the option to prevent the screening by notifying 
305.31 	the court or county agency in writing. The screening shall be conducted with a screening 
305.32 	instrument approved by the commissioner of human services according to criteria that 
305.33 	are updated and issued annually to ensure that approved screening instruments are valid 
305.34 	and useful for child welfare and juvenile justice populations, and shall be conducted 
305.35 	by a mental health practitioner as defined in section 245.4871, subdivision 26, or a 
305.36 	probation officer or local social services agency staff person who is trained in the use of 
306.1 	the screening instrument. Training in the use of the instrument shall include training in the 
306.2 	administration of the instrument, the interpretation of its validity given the child's current 
306.3 	circumstances, the state and federal data practices laws and confidentiality standards, the 
306.4 	parental consent requirement, and providing respect for families and cultural values. 
306.5 	If the screen indicates a need for assessment, the child's family, or if the family lacks 
306.6 	mental health insurance, the local social services agency, in consultation with the child's 
306.7 	family, shall have conducted a diagnostic assessment, including a functional assessment, 
306.8 	as defined in section 245.4871. The administration of the screening shall safeguard the 
306.9 	privacy of children receiving the screening and their families and shall comply with the 
306.10 	Minnesota Government Data Practices Act, chapter 13, and the federal Health Insurance 
306.11 	Portability and Accountability Act of 1996, Public Law 104-191. Screening results shall be 
306.12 	considered private data and the commissioner shall not collect individual screening results.
306.13 	(b) When the county board refers clients to providers of children's therapeutic 
306.14 	services and supports under section 256B.0943, the county board must clearly identify 
306.15 	the desired services components not covered under section 256B.0943 and identify the 
306.16 	reimbursement source for those requested services, the method of payment, and the 
306.17 	payment rate to the provider.
306.18 		Subd. 2.Responsibility not duplicated. For individuals who have health care 
306.19 	coverage, the county board is not responsible for providing mental health services which 
306.20 	are within the limits of the individual's health care coverage.

306.21 	Sec. 8. [245.4889] CHILDREN'S MENTAL HEALTH GRANTS.
306.22 		Subdivision 1.Establishment and authority. (a) The commissioner is authorized 
306.23 	to make grants from available appropriations to assist: 
306.24 	(1) counties;
306.25 	(2) Indian tribes;
306.26 	(3) children's collaboratives under section 124D.23 or 245.493; or
306.27 	(4) mental health service providers
306.28 	for providing services to children with emotional disturbances as defined in section 
306.29 	245.4871, subdivision 15, and their families. The commissioner may also authorize 
306.30 	grants to young adults meeting the criteria for transition services in section 245.4875, 
306.31 	subdivision 8, and their families. 
306.32 	(b) Services under paragraph (a) must be designed to help each child to function and 
306.33 	remain with the child's family in the community and delivered consistent with the child's 
306.34 	treatment plan. Transition services to eligible young adults under paragraph (a) must be 
306.35 	designed to foster independent living in the community.
307.1 		Subd. 2.Grant application and reporting requirements. To apply for a grant, 
307.2 	an applicant organization shall submit an application and budget for the use of the 
307.3 	money in the form specified by the commissioner. The commissioner shall make grants 
307.4 	only to entities whose applications and budgets are approved by the commissioner. In 
307.5 	awarding grants, the commissioner shall give priority to applications that indicate plans 
307.6 	to collaborate in the development, funding, and delivery of services with other agencies 
307.7 	in the local system of care. The commissioner shall specify requirements for reports, 
307.8 	including quarterly fiscal reports under section 256.01, subdivision 2, paragraph (q). The 
307.9 	commissioner shall require collection of data and periodic reports that the commissioner 
307.10 	deems necessary to demonstrate the effectiveness of each service.

307.11 	Sec. 9. Minnesota Statutes 2006, section 245.50, subdivision 5, is amended to read:
307.12 		Subd. 5.Special contracts; bordering states. (a) An individual who is detained, 
307.13 	committed, or placed on an involuntary basis under chapter 253B may be confined or 
307.14 	treated in a bordering state pursuant to a contract under this section. An individual who is 
307.15 	detained, committed, or placed on an involuntary basis under the civil law of a bordering 
307.16 	state may be confined or treated in Minnesota pursuant to a contract under this section. A 
307.17 	peace or health officer who is acting under the authority of the sending state may transport 
307.18 	an individual to a receiving agency that provides services pursuant to a contract under 
307.19 	this section and may transport the individual back to the sending state under the laws 
307.20 	of the sending state. Court orders valid under the law of the sending state are granted 
307.21 	recognition and reciprocity in the receiving state for individuals covered by a contract 
307.22 	under this section to the extent that the court orders relate to confinement for treatment 
307.23 	or care of mental illness or chemical dependency. Such treatment or care may address 
307.24 	other conditions that may be co-occurring with the mental illness or chemical dependency. 
307.25 	These court orders are not subject to legal challenge in the courts of the receiving state. 
307.26 	Individuals who are detained, committed, or placed under the law of a sending state and 
307.27 	who are transferred to a receiving state under this section continue to be in the legal 
307.28 	custody of the authority responsible for them under the law of the sending state. Except 
307.29 	in emergencies, those individuals may not be transferred, removed, or furloughed from 
307.30 	a receiving agency without the specific approval of the authority responsible for them 
307.31 	under the law of the sending state.
307.32 	(b) While in the receiving state pursuant to a contract under this section, an 
307.33 	individual shall be subject to the sending state's laws and rules relating to length of 
307.34 	confinement, reexaminations, and extensions of confinement. No individual may be sent 
308.1 	to another state pursuant to a contract under this section until the receiving state has 
308.2 	enacted a law recognizing the validity and applicability of this section.
308.3 	(c) If an individual receiving services pursuant to a contract under this section leaves 
308.4 	the receiving agency without permission and the individual is subject to involuntary 
308.5 	confinement under the law of the sending state, the receiving agency shall use all 
308.6 	reasonable means to return the individual to the receiving agency. The receiving agency 
308.7 	shall immediately report the absence to the sending agency. The receiving state has the 
308.8 	primary responsibility for, and the authority to direct, the return of these individuals 
308.9 	within its borders and is liable for the cost of the action to the extent that it would be 
308.10 	liable for costs of its own resident.
308.11 	(d) Responsibility for payment for the cost of care remains with the sending agency.
308.12 	(e) This subdivision also applies to county contracts under subdivision 2 which 
308.13 	include emergency care and treatment provided to a county resident in a bordering state.
308.14 	(f) If a Minnesota resident is admitted to a facility in a bordering state under this 
308.15 	chapter, a physician, licensed psychologist who has a doctoral degree in psychology, or 
308.16 	an advance practice registered nurse certified in mental health, who is licensed in the 
308.17 	bordering state, may act as an examiner under sections 253B.07, 253B.08, 253B.092, 
308.18 	253B.12, and 253B.17 subject to the same requirements and limitations in section 
308.19 	253B.02, subdivision 7.

308.20 	Sec. 10. Minnesota Statutes 2006, section 245.98, subdivision 2, is amended to read:
308.21 		Subd. 2.Program. The commissioner of human services shall establish a program 
308.22 	for the treatment of compulsive gamblers. The commissioner may contract with an 
308.23 	entity with expertise regarding the treatment of compulsive gambling to operate the 
308.24 	program. The program may include the establishment of a statewide toll-free number, 
308.25 	resource library, public education programs; regional in-service training programs and 
308.26 	conferences for health care professionals, educators, treatment providers, employee 
308.27 	assistance programs, and criminal justice representatives; and the establishment of 
308.28 	certification standards for programs and service providers. The commissioner may enter 
308.29 	into agreements with other entities and may employ or contract with consultants to 
308.30 	facilitate the provision of these services or the training of individuals to qualify them to 
308.31 	provide these services. The program may also include inpatient and outpatient treatment 
308.32 	and rehabilitation services and for residents in different settings, including a temporary or 
308.33 	permanent residential setting for mental health or chemical dependency, and individuals 
308.34 	in jails or correctional facilities. The program may also include research studies. The 
308.35 	research studies must include baseline and prevalence studies for adolescents and adults to 
309.1 	identify those at the highest risk. The program must be approved by the commissioner 
309.2 	before it is established.

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

309.11 	Sec. 12. Minnesota Statutes 2006, section 246.54, subdivision 1, is amended to read:
309.12 		Subdivision 1.County portion for cost of care. (a) Except for chemical 
309.13 	dependency services provided under sections 254B.01 to 254B.09, the client's county 
309.14 	shall pay to the state of Minnesota a portion of the cost of care provided in a regional 
309.15 	treatment center or a state nursing facility to a client legally settled in that county. A 
309.16 	county's payment shall be made from the county's own sources of revenue and payments 
309.17 	shall be paid as follows: payments to the state from the county shall equal 20 percenta 
309.18 	percentage of the cost of care, as determined by the commissioner, for each day, or the 
309.19 	portion thereof, that the client spends at a regional treatment center or a state nursing 
309.20 	facility. according to the following schedule:
309.21 	(1) zero percent for the first 30 days;
309.22 	(2) 20 percent for days 31 to 60; and
309.23 	(3) 50 percent for any days over 60.
309.24 	(b) The increase in the county portion for cost of care under paragraph (a), clause 
309.25 	(3), shall be imposed when the treatment facility has determined that it is clinically 
309.26 	appropriate for the client to be discharged.
309.27 	(c) If payments received by the state under sections 246.50 to 246.53 exceed 80 
309.28 	percent of the cost of care for days 31 to 60, or 50 percent for days over 60, the county 
309.29 	shall be responsible for paying the state only the remaining amount. The county shall 
309.30 	not be entitled to reimbursement from the client, the client's estate, or from the client's 
309.31 	relatives, except as provided in section 246.53. No such payments shall be made for any 
309.32 	client who was last committed prior to July 1, 1947.

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

310.1 	Sec. 13. Minnesota Statutes 2006, section 246.54, subdivision 2, is amended to read:
310.2 		Subd. 2.Exceptions. (a) Subdivision 1 does not apply to services provided at the 
310.3 	Minnesota Security Hospital, the Minnesota sex offender program, or the Minnesota 
310.4 	extended treatment options program. For services at these facilities, a county's payment 
310.5 	shall be made from the county's own sources of revenue and payments shall be paid as 
310.6 	follows: payments to the state from the county shall equal ten percent of the cost of care, 
310.7 	as determined by the commissioner, for each day, or the portion thereof, that the client 
310.8 	spends at the facility. If payments received by the state under sections 246.50 to 246.53
310.9 	exceed 90 percent of the cost of care, the county shall be responsible for paying the state 
310.10 	only the remaining amount. The county shall not be entitled to reimbursement from the 
310.11 	client, the client's estate, or from the client's relatives, except as provided in section 246.53. 
310.12 	(b) Regardless of the facility to which the client is committed, subdivision 1 does not 
310.13 	apply to the following individuals:
310.14 	(1) clients who are committed as mentally ill and dangerous under section 253B.02, 
310.15 	subdivision 17;
310.16 	(2) clients who are committed as sexual psychopathic personalities under section 
310.17 	253B.02, subdivision 18b; and
310.18 	(3) clients who are committed as sexually dangerous persons under section 253B.02, 
310.19 	subdivision 18c.
310.20 	For each of the individuals in clauses (1) to (3), the payment by the county to the state 
310.21 	shall equal ten percent of the cost of care for each day as determined by the commissioner.

310.22 	Sec. 14. Minnesota Statutes 2006, section 253B.185, is amended by adding a 
310.23 	subdivision to read:
310.24 		Subd. 8.Petition and report required. (a) Within 120 days of receipt of a 
310.25 	preliminary determination from a court under section 609.1351, or a referral from the 
310.26 	commissioner of corrections pursuant to section 244.05, subdivision 7, a county attorney 
310.27 	shall determine whether good cause under this section exists to file a petition, and if good 
310.28 	cause exists, the county attorney or designee shall file the petition with the court.
310.29 	(b) Failure to meet the requirements of paragraph (a) does not bar filing a petition 
310.30 	under subdivision 1 any time the county attorney determines pursuant to subdivision 1 
310.31 	that good cause for such a petition exists.
310.32 	(c) By February 1 of each year, the commissioner of human services shall annually 
310.33 	report to the respective chairs of the divisions or committees of the senate and house 
310.34 	of representatives that oversee human services finance regarding compliance with this 
310.35 	subdivision.

311.1 	Sec. 15. [254A.25] DUTIES OF COMMISSIONER RELATED TO CHEMICAL 
311.2 	HEALTH.
311.3 	The commissioner shall:
311.4 	(1) annually distribute information to chemical health assessors on best practices in 
311.5 	assessments, including model instruments for adults and adolescents;
311.6 	(2) monitor the compliance of local agencies with assessment and referral rules;
311.7 	(3) develop a directory that identifies key characteristics of each licensed chemical 
311.8 	dependency treatment program;
311.9 	(4) work with the commissioner of health to develop guidelines and training 
311.10 	materials for health care organizations on the use of brief interventions for alcohol and 
311.11 	chemical substance abuse;
311.12 	(5) provide local agencies with examples of best practices for addressing needs of 
311.13 	persons being considered for repeat placements into publicly funded treatment;
311.14 	(6) identify best practices to help local agencies monitor the progress of clients 
311.15 	placed in treatment;
311.16 	(7) periodically provide local agencies with statewide information on treatment 
311.17 	outcomes; and
311.18 	(8) post copies of state licensing reviews  at an online location where they may be 
311.19 	reviewed by agencies that make client placements.

311.20 	Sec. 16. [256B.0615] MENTAL HEALTH CERTIFIED PEER SPECIALIST.
311.21 		Subdivision 1.Scope. Medical assistance covers mental health certified peers 
311.22 	specialists services, as established in subdivision 2, subject to federal approval, if provided 
311.23 	to recipients who are eligible for services under sections 256B.0622 and 256B.0623, 
311.24 	and are provided by a certified peer specialist who has completed the training under 
311.25 	subdivision 5.
311.26 		Subd. 2.Establishment. The commissioner of human services shall establish a 
311.27 	certified peer specialists program model, which:
311.28 	(1) provides nonclinical peer support counseling by certified peer specialists;
311.29 	(2) provides a part of a wraparound continuum of services in conjunction with 
311.30 	other community mental health services;
311.31 	(3) is individualized to the consumer; and
311.32 	(4) promotes socialization, recovery, self-sufficiency, self-advocacy, development of 
311.33 	natural supports, and maintenance of skills learned in other support services.
312.1 		Subd. 3.Eligibility. Peer support services may be made available to consumers 
312.2 	of the intensive rehabilitative mental health services under section 256B.0622 and adult 
312.3 	rehabilitative mental health services under section 256B.0623.
312.4 		Subd. 4.Peer support specialist program providers. The commissioner shall 
312.5 	develop a process to certify peer support specialist programs, in accordance with the 
312.6 	federal guidelines, in order for the program to bill for reimbursable services. Peer support 
312.7 	programs may be freestanding or within existing mental health community provider 
312.8 	centers.
312.9 		Subd. 5.Certified peer specialist training and certification. The commissioner 
312.10 	of human services shall develop a training and certification process for certified peer 
312.11 	specialists, who must be at least 21 years of age and have a high school diploma or its 
312.12 	equivalent. The candidates must have had a primary diagnosis of mental illness, be a 
312.13 	current or former consumer of mental health services, and must demonstrate leadership 
312.14 	and advocacy skills and a strong dedication to recovery. The training curriculum must 
312.15 	teach participating consumers specific skills relevant to providing peer support to other 
312.16 	consumers. In addition to initial training and certification, the commissioner shall develop 
312.17 	ongoing continuing educational workshops on pertinent issues related to peer support 
312.18 	counseling.

312.19 	Sec. 17. Minnesota Statutes 2006, section 256B.0622, subdivision 2, is amended to 
312.20 	read:
312.21 		Subd. 2.Definitions. For purposes of this section, the following terms have the 
312.22 	meanings given them.
312.23 	(a) "Intensive nonresidential rehabilitative mental health services" means adult 
312.24 	rehabilitative mental health services as defined in section 256B.0623, subdivision 2, 
312.25 	paragraph (a), except that these services are provided by a multidisciplinary staff using 
312.26 	a total team approach consistent with assertive community treatment, the Fairweather 
312.27 	Lodge treatment model, as defined by the standards established by the National Coalition 
312.28 	for Community Living, and other evidence-based practices, and directed to recipients with 
312.29 	a serious mental illness who require intensive services.
312.30 	(b) "Intensive residential rehabilitative mental health services" means short-term, 
312.31 	time-limited services provided in a residential setting to recipients who are in need of 
312.32 	more restrictive settings and are at risk of significant functional deterioration if they do 
312.33 	not receive these services. Services are designed to develop and enhance psychiatric 
312.34 	stability, personal and emotional adjustment, self-sufficiency, and skills to live in a more 
312.35 	independent setting. Services must be directed toward a targeted discharge date with 
313.1 	specified client outcomes and must be consistent with the Fairweather Lodge treatment 
313.2 	model as defined in paragraph (a), and other evidence-based practices.
313.3 	(c) "Evidence-based practices" are nationally recognized mental health services that 
313.4 	are proven by substantial research to be effective in helping individuals with serious 
313.5 	mental illness obtain specific treatment goals.
313.6 	(d) "Overnight staff" means a member of the intensive residential rehabilitative 
313.7 	mental health treatment team who is responsible during hours when recipients are 
313.8 	typically asleep.
313.9 	(e) "Treatment team" means all staff who provide services under this section 
313.10 	to recipients. At a minimum, this includes the clinical supervisor, mental health 
313.11 	professionals, as defined in section 245.462, subdivision 18, clauses (1) to (5); mental 
313.12 	health practitioners, and as defined in section 245.462, subdivision 17; mental health 
313.13 	rehabilitation workers under section 256B.0623, subdivision 5, clause (3); and certified 
313.14 	peer specialists under section 256B.0615.

313.15 	Sec. 18. Minnesota Statutes 2006, section 256B.0623, subdivision 5, is amended to 
313.16 	read:
313.17 		Subd. 5.Qualifications of provider staff. Adult rehabilitative mental health 
313.18 	services must be provided by qualified individual provider staff of a certified provider 
313.19 	entity. Individual provider staff must be qualified under one of the following criteria:
313.20 	(1) a mental health professional as defined in section 245.462, subdivision 18, 
313.21 	clauses (1) to (5). If the recipient has a current diagnostic assessment by a licensed 
313.22 	mental health professional as defined in section 245.462, subdivision 18, clauses (1) to 
313.23 	(5), recommending receipt of adult mental health rehabilitative services, the definition of 
313.24 	mental health professional for purposes of this section includes a person who is qualified 
313.25 	under section 245.462, subdivision 18, clause (6), and who holds a current and valid 
313.26 	national certification as a certified rehabilitation counselor or certified psychosocial 
313.27 	rehabilitation practitioner; 
313.28 	(2) a mental health practitioner as defined in section 245.462, subdivision 17. The 
313.29 	mental health practitioner must work under the clinical supervision of a mental health 
313.30 	professional; or
313.31 	(3) a certified peer specialist under section 256B.0615. The certified peer specialist 
313.32 	must work under the clinical supervision of a mental health professional; or
313.33 	(3) (4) a mental health rehabilitation worker. A mental health rehabilitation worker 
313.34 	means a staff person working under the direction of a mental health practitioner or mental 
313.35 	health professional and under the clinical supervision of a mental health professional in 
314.1 	the implementation of rehabilitative mental health services as identified in the recipient's 
314.2 	individual treatment plan who:
314.3 	(i) is at least 21 years of age;
314.4 	(ii) has a high school diploma or equivalent;
314.5 	(iii) has successfully completed 30 hours of training during the past two years in all 
314.6 	of the following areas: recipient rights, recipient-centered individual treatment planning, 
314.7 	behavioral terminology, mental illness, co-occurring mental illness and substance abuse, 
314.8 	psychotropic medications and side effects, functional assessment, local community 
314.9 	resources, adult vulnerability, recipient confidentiality; and
314.10 	(iv) meets the qualifications in subitem (A) or (B):
314.11 	(A) has an associate of arts degree in one of the behavioral sciences or human 
314.12 	services, or is a registered nurse without a bachelor's degree, or who within the previous 
314.13 	ten years has:
314.14 	(1) three years of personal life experience with serious and persistent mental illness;
314.15 	(2) three years of life experience as a primary caregiver to an adult with a serious 
314.16 	mental illness or traumatic brain injury; or
314.17 	(3) 4,000 hours of supervised paid work experience in the delivery of mental health 
314.18 	services to adults with a serious mental illness or traumatic brain injury; or
314.19 	(B)(1) is fluent in the non-English language or competent in the culture of the 
314.20 	ethnic group to which at least 20 percent of the mental health rehabilitation worker's 
314.21 	clients belong;
314.22 	(2) receives during the first 2,000 hours of work, monthly documented individual 
314.23 	clinical supervision by a mental health professional;
314.24 	(3) has 18 hours of documented field supervision by a mental health professional 
314.25 	or practitioner during the first 160 hours of contact work with recipients, and at least six 
314.26 	hours of field supervision quarterly during the following year;
314.27 	(4) has review and cosignature of charting of recipient contacts during field 
314.28 	supervision by a mental health professional or practitioner; and
314.29 	(5) has 40 hours of additional continuing education on mental health topics during 
314.30 	the first year of employment.

314.31 	Sec. 19. Minnesota Statutes 2006, section 256B.0625, is amended by adding a 
314.32 	subdivision to read:
314.33 		Subd. 5l.Intensive mental health outpatient treatment. Medical assistance 
314.34 	covers intensive mental health outpatient treatment for dialectical behavioral therapy for 
314.35 	adults. The commissioner shall establish:
315.1 	(1) certification procedures to ensure that providers of these services are qualified; 
315.2 	and
315.3 	(2) treatment protocols including required service components and criteria for 
315.4 	admission, continued treatment, and discharge.

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

315.8 	Sec. 20. Minnesota Statutes 2006, section 256B.0625, subdivision 20, is amended to 
315.9 	read:
315.10 		Subd. 20.Mental health case management. (a) To the extent authorized by rule 
315.11 	of the state agency, medical assistance covers case management services to persons with 
315.12 	serious and persistent mental illness and children with severe emotional disturbance. 
315.13 	Services provided under this section must meet the relevant standards in sections 245.461
315.14 	to 245.4887, the Comprehensive Adult and Children's Mental Health Acts, Minnesota 
315.15 	Rules, parts 9520.0900 to 9520.0926, and 9505.0322, excluding subpart 10. 
315.16 	(b) Entities meeting program standards set out in rules governing family community 
315.17 	support services as defined in section 245.4871, subdivision 17, are eligible for medical 
315.18 	assistance reimbursement for case management services for children with severe 
315.19 	emotional disturbance when these services meet the program standards in Minnesota 
315.20 	Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10. 
315.21 	(c) Medical assistance and MinnesotaCare payment for mental health case 
315.22 	management shall be made on a monthly basis. In order to receive payment for an eligible 
315.23 	child, the provider must document at least a face-to-face contact with the child, the child's 
315.24 	parents, or the child's legal representative. To receive payment for an eligible adult, the 
315.25 	provider must document:
315.26 	(1) at least a face-to-face contact with the adult or the adult's legal representative; or
315.27 	(2) at least a telephone contact with the adult or the adult's legal representative and 
315.28 	document a face-to-face contact with the adult or the adult's legal representative within 
315.29 	the preceding two months.
315.30 	(d) Payment for mental health case management provided by county or state staff 
315.31 	shall be based on the monthly rate methodology under section 256B.094, subdivision 6, 
315.32 	paragraph (b), with separate rates calculated for child welfare and mental health, and 
315.33 	within mental health, separate rates for children and adults. 
316.1 	(e) Payment for mental health case management provided by Indian health services 
316.2 	or by agencies operated by Indian tribes may be made according to this section or other 
316.3 	relevant federally approved rate setting methodology.
316.4 	(f) Payment for mental health case management provided by vendors who contract 
316.5 	with a county or Indian tribe shall be based on a monthly rate negotiated by the host county 
316.6 	or tribe. The negotiated rate must not exceed the rate charged by the vendor for the same 
316.7 	service to other payers. If the service is provided by a team of contracted vendors, the 
316.8 	county or tribe may negotiate a team rate with a vendor who is a member of the team. The 
316.9 	team shall determine how to distribute the rate among its members. No reimbursement 
316.10 	received by contracted vendors shall be returned to the county or tribe, except to reimburse 
316.11 	the county or tribe for advance funding provided by the county or tribe to the vendor.
316.12 	(g) If the service is provided by a team which includes contracted vendors, tribal 
316.13 	staff, and county or state staff, the costs for county or state staff participation in the team 
316.14 	shall be included in the rate for county-provided services. In this case, the contracted 
316.15 	vendor, the tribal agency, and the county may each receive separate payment for services 
316.16 	provided by each entity in the same month. In order to prevent duplication of services, 
316.17 	each entity must document, in the recipient's file, the need for team case management and 
316.18 	a description of the roles of the team members.
316.19 	(h) The commissioner shall calculate the nonfederal share of actual medical 
316.20 	assistance and general assistance medical care payments for each county, based on the 
316.21 	higher of calendar year 1995 or 1996, by service date, project that amount forward to 1999, 
316.22 	and transfer one-half of the result from medical assistance and general assistance medical 
316.23 	care to each county's mental health grants under section 256E.12 for calendar year 1999. 
316.24 	The annualized minimum amount added to each county's mental health grant shall be 
316.25 	$3,000 per year for children and $5,000 per year for adults. The commissioner may reduce 
316.26 	the statewide growth factor in order to fund these minimums. The annualized total amount 
316.27 	transferred shall become part of the base for future mental health grants for each county. 
316.28 	(i)(h) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of 
316.29 	costs for mental health case management shall be provided by the recipient's county of 
316.30 	responsibility, as defined in sections 256G.01 to 256G.12, from sources other than federal 
316.31 	funds or funds used to match other federal funds. If the service is provided by a tribal 
316.32 	agency, the nonfederal share, if any, shall be provided by the recipient's tribe. When this 
316.33 	service is paid by the state without a federal share through fee-for-service, 50 percent of 
316.34 	the cost shall be provided by the recipient's county of responsibility.
316.35 	(i) Notwithstanding any administrative rule to the contrary, prepaid medical 
316.36 	assistance, general assistance medical care, and MinnesotaCare include mental health case 
317.1 	management. When the service is provided through prepaid capitation, the nonfederal 
317.2 	share is paid by the state and the county pays no share.
317.3 	(j) The commissioner may suspend, reduce, or terminate the reimbursement to a 
317.4 	provider that does not meet the reporting or other requirements of this section. The county 
317.5 	of responsibility, as defined in sections 256G.01 to 256G.12, or, if applicable, the tribal 
317.6 	agency, is responsible for any federal disallowances. The county or tribe may share this 
317.7 	responsibility with its contracted vendors. 
317.8 	(k) The commissioner shall set aside a portion of the federal funds earned for county 
317.9 	expenditures under this section to repay the special revenue maximization account under 
317.10 	section 256.01, subdivision 2, clause (15). The repayment is limited to: 
317.11 	(1) the costs of developing and implementing this section; and
317.12 	(2) programming the information systems.
317.13 	(l) Payments to counties and tribal agencies for case management expenditures 
317.14 	under this section shall only be made from federal earnings from services provided 
317.15 	under this section. When this service is paid by the state without a federal share through 
317.16 	fee-for-service, 50 percent of the cost shall be provided by the state. Payments to 
317.17 	county-contracted vendors shall include both the federal earnings, the state share,  and the 
317.18 	county share.
317.19 	(m) Notwithstanding section 256B.041, county payments for the cost of mental 
317.20 	health case management services provided by county or state staff shall not be made 
317.21 	to the commissioner of finance. For the purposes of mental health case management 
317.22 	services provided by county or state staff under this section, the centralized disbursement 
317.23 	of payments to counties under section 256B.041 consists only of federal earnings from 
317.24 	services provided under this section. 
317.25 	(n)(m) Case management services under this subdivision do not include therapy, 
317.26 	treatment, legal, or outreach services.
317.27 	(o)(n) If the recipient is a resident of a nursing facility, intermediate care facility, 
317.28 	or hospital, and the recipient's institutional care is paid by medical assistance, payment 
317.29 	for case management services under this subdivision is limited to the last 180 days of 
317.30 	the recipient's residency in that facility and may not exceed more than six months in a 
317.31 	calendar year.
317.32 	(p)(o) Payment for case management services under this subdivision shall not 
317.33 	duplicate payments made under other program authorities for the same purpose.
317.34 	(q) By July 1, 2000, the commissioner shall evaluate the effectiveness of the changes 
317.35 	required by this section, including changes in number of persons receiving mental health 
317.36 	case management, changes in hours of service per person, and changes in caseload size.
318.1 	(r) For each calendar year beginning with the calendar year 2001, the annualized 
318.2 	amount of state funds for each county determined under paragraph (h) shall be adjusted by 
318.3 	the county's percentage change in the average number of clients per month who received 
318.4 	case management under this section during the fiscal year that ended six months prior to 
318.5 	the calendar year in question, in comparison to the prior fiscal year.
318.6 	(s) For counties receiving the minimum allocation of $3,000 or $5,000 described 
318.7 	in paragraph (h), the adjustment in paragraph (s) shall be determined so that the county 
318.8 	receives the higher of the following amounts:
318.9 	(1) a continuation of the minimum allocation in paragraph (h); or
318.10 	(2) an amount based on that county's average number of clients per month who 
318.11 	received case management under this section during the fiscal year that ended six months 
318.12 	prior to the calendar year in question, times the average statewide grant per person per 
318.13 	month for counties not receiving the minimum allocation.
318.14 	(t) The adjustments in paragraphs (s) and (t) shall be calculated separately for 
318.15 	children and adults.

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

318.18 	Sec. 21. Minnesota Statutes 2006, section 256B.0625, subdivision 47, is amended to 
318.19 	read:
318.20 		Subd. 47.Treatment foster care services. Effective July 1, 2006 2009, and subject 
318.21 	to federal approval, medical assistance covers treatment foster care services according to 
318.22 	section 256B.0946.

318.23 	Sec. 22. Minnesota Statutes 2006, section 256B.0943, subdivision 8, is amended to 
318.24 	read:
318.25 		Subd. 8.Required preservice and continuing education. (a) A provider entity 
318.26 	shall establish a plan to provide preservice and continuing education for staff. The plan 
318.27 	must clearly describe the type of training necessary to maintain current skills and obtain 
318.28 	new skills and that relates to the provider entity's goals and objectives for services offered.
318.29 	(b) A provider that employs a mental health behavioral aide under this section must 
318.30 	require the mental health behavioral aide to complete 30 hours of preservice training. The 
318.31 	preservice training must include topics specified in Minnesota Rules, part 9535.4068, 
318.32 	subparts 1 and 2, and parent team training. The preservice training must include 15 hours 
318.33 	of in-person training of a mental health behavioral aide in mental health services delivery 
319.1 	and eight hours of parent team training. Curricula for parent team training must be 
319.2 	approved in advance by the commissioner. Components of parent team training include:
319.3 	(1) partnering with parents;
319.4 	(2) fundamentals of family support;
319.5 	(3) fundamentals of policy and decision making;
319.6 	(4) defining equal partnership;
319.7 	(5) complexities of the parent and service provider partnership in multiple service 
319.8 	delivery systems due to system strengths and weaknesses;
319.9 	(6) sibling impacts;
319.10 	(7) support networks; and
319.11 	(8) community resources.
319.12 	(c) A provider entity that employs a mental health practitioner and a mental health 
319.13 	behavioral aide to provide children's therapeutic services and supports under this section 
319.14 	must require the mental health practitioner and mental health behavioral aide to complete 
319.15 	20 hours of continuing education every two calendar years. The continuing education 
319.16 	must be related to serving the needs of a child with emotional disturbance in the child's 
319.17 	home environment and the child's family. The topics covered in orientation and training 
319.18 	must conform to Minnesota Rules, part 9535.4068.
319.19 	(d) The provider entity must document the mental health practitioner's or mental 
319.20 	health behavioral aide's annual completion of the required continuing education. The 
319.21 	documentation must include the date, subject, and number of hours of the continuing 
319.22 	education, and attendance records, as verified by the staff member's signature, job 
319.23 	title, and the instructor's name. The provider entity must keep documentation for each 
319.24 	employee, including records of attendance at professional workshops and conferences, 
319.25 	at a central location and in the employee's personnel file.

319.26 	Sec. 23. Minnesota Statutes 2006, section 256B.0945, subdivision 4, is amended to 
319.27 	read:
319.28 		Subd. 4.Payment rates. (a) Notwithstanding sections 256B.19 and 256B.041, 
319.29 	payments to counties for residential services provided by a residential facility shall only 
319.30 	be made of federal earnings for services provided under this section, and the nonfederal 
319.31 	share of costs for services provided under this section shall be paid by the county from 
319.32 	sources other than federal funds or funds used to match other federal funds. Payment to 
319.33 	counties for services provided according to this section shall be a proportion of the per 
319.34 	day contract rate that relates to rehabilitative mental health services and shall not include 
319.35 	payment for costs or services that are billed to the IV-E program as room and board. 
320.1 	(b) Per diem rates paid to providers under this section by prepaid plans shall be the 
320.2 	proportion of the per-day contract rate that relates to rehabilitative mental health services 
320.3 	and shall not include payment for group foster care costs or services that are billed to the 
320.4 	county of financial responsibility.
320.5 	(c) The commissioner shall set aside a portion not to exceed five percent of the 
320.6 	federal funds earned for county expenditures under this section to cover the state costs of 
320.7 	administering this section. Any unexpended funds from the set-aside shall be distributed 
320.8 	to the counties in proportion to their earnings under this section.

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

320.10 	Sec. 24. Minnesota Statutes 2006, section 256B.69, subdivision 4, is amended to read:
320.11 		Subd. 4.Limitation of choice. (a) The commissioner shall develop criteria to 
320.12 	determine when limitation of choice may be implemented in the experimental counties. 
320.13 	The criteria shall ensure that all eligible individuals in the county have continuing access 
320.14 	to the full range of medical assistance services as specified in subdivision 6.
320.15 	(b) The commissioner shall exempt the following persons from participation in the 
320.16 	project, in addition to those who do not meet the criteria for limitation of choice:
320.17 	(1) persons eligible for medical assistance according to section 256B.055, 
320.18 	subdivision 1;
320.19 	(2) persons eligible for medical assistance due to blindness or disability as 
320.20 	determined by the Social Security Administration or the state medical review team, unless:
320.21 	(i) they are 65 years of age or older; or
320.22 	(ii) they reside in Itasca County or they reside in a county in which the commissioner 
320.23 	conducts a pilot project under a waiver granted pursuant to section 1115 of the Social 
320.24 	Security Act;
320.25 	(3) recipients who currently have private coverage through a health maintenance 
320.26 	organization;
320.27 	(4) recipients who are eligible for medical assistance by spending down excess 
320.28 	income for medical expenses other than the nursing facility per diem expense;
320.29 	(5) recipients who receive benefits under the Refugee Assistance Program, 
320.30 	established under United States Code, title 8, section 1522(e);
320.31 	(6) children who are both determined to be severely emotionally disturbed and 
320.32 	receiving case management services according to section 256B.0625, subdivision 20, 
320.33 	except children who are eligible for and who decline enrollment in an approved preferred 
320.34 	integrated network under section 245.4682;
321.1 	(7) adults who are both determined to be seriously and persistently mentally ill and 
321.2 	received case management services according to section 256B.0625, subdivision 20;
321.3 	(8) persons eligible for medical assistance according to section 256B.057, 
321.4 	subdivision 10; and
321.5 	(9) persons with access to cost-effective employer-sponsored private health 
321.6 	insurance or persons enrolled in a non-Medicare individual health plan determined to be 
321.7 	cost-effective according to section 256B.0625, subdivision 15.
321.8 	Children under age 21 who are in foster placement may enroll in the project on an elective 
321.9 	basis. Individuals excluded under clauses (1), (6), and (7) may choose to enroll on an 
321.10 	elective basis. The commissioner may enroll recipients in the prepaid medical assistance 
321.11 	program for seniors who are (1) age 65 and over, and (2) eligible for medical assistance by 
321.12 	spending down excess income.
321.13 	(c) The commissioner may allow persons with a one-month spenddown who are 
321.14 	otherwise eligible to enroll to voluntarily enroll or remain enrolled, if they elect to prepay 
321.15 	their monthly spenddown to the state.
321.16 	(d) The commissioner may require those individuals to enroll in the prepaid medical 
321.17 	assistance program who otherwise would have been excluded under paragraph (b), clauses 
321.18 	(1), (3), and (8), and under Minnesota Rules, part 9500.1452, subpart 2, items H, K, and L.
321.19 	(e) Before limitation of choice is implemented, eligible individuals shall be notified 
321.20 	and after notification, shall be allowed to choose only among demonstration providers. 
321.21 	The commissioner may assign an individual with private coverage through a health 
321.22 	maintenance organization, to the same health maintenance organization for medical 
321.23 	assistance coverage, if the health maintenance organization is under contract for medical 
321.24 	assistance in the individual's county of residence. After initially choosing a provider, 
321.25 	the recipient is allowed to change that choice only at specified times as allowed by the 
321.26 	commissioner. If a demonstration provider ends participation in the project for any reason, 
321.27 	a recipient enrolled with that provider must select a new provider but may change providers 
321.28 	without cause once more within the first 60 days after enrollment with the second provider.
321.29 	(f) An infant born to a woman who is eligible for and receiving medical assistance 
321.30 	and who is enrolled in the prepaid medical assistance program shall be retroactively 
321.31 	enrolled to the month of birth in the same managed care plan as the mother once the 
321.32 	child is enrolled in medical assistance unless the child is determined to be excluded from 
321.33 	enrollment in a prepaid plan under this section.

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

322.1 	Sec. 25. Minnesota Statutes 2006, section 256B.69, subdivision 5g, is amended to read:
322.2 		Subd. 5g.Payment for covered services. For services rendered on or after January 
322.3 	1, 2003, the total payment made to managed care plans for providing covered services 
322.4 	under the medical assistance and general assistance medical care programs is reduced by 
322.5 	.5 percent from their current statutory rates. This provision excludes payments for nursing 
322.6 	home services, home and community-based waivers, and payments to demonstration 
322.7 	projects for persons with disabilities, and mental health services added as covered benefits 
322.8 	after December 31, 2007.

322.9 	Sec. 26. Minnesota Statutes 2006, section 256B.69, subdivision 5h, is amended to read:
322.10 		Subd. 5h.Payment reduction. In addition to the reduction in subdivision 5g, 
322.11 	the total payment made to managed care plans under the medical assistance program is 
322.12 	reduced 1.0 percent for services provided on or after October 1, 2003, and an additional 
322.13 	1.0 percent for services provided on or after January 1, 2004. This provision excludes 
322.14 	payments for nursing home services, home and community-based waivers, and payments 
322.15 	to demonstration projects for persons with disabilities, and mental health services added as 
322.16 	covered benefits after December 31, 2007.

322.17 	Sec. 27. Minnesota Statutes 2006, section 256B.763, is amended to read:
322.18 	256B.763 CRITICAL ACCESS MENTAL HEALTH RATE INCREASE.
322.19 	(a) For services defined in paragraph (b) and rendered on or after July 1, 2007, 
322.20 	payment rates shall be increased by 23.7 percent over the rates in effect on January 1, 
322.21 	2006, for:
322.22 	(1) psychiatrists and advanced practice registered nurses with a psychiatric specialty;
322.23 	(2) community mental health centers under section 256B.0625, subdivision 5; and
322.24 	(3) mental health clinics and centers certified under Minnesota Rules, parts 
322.25 	9520.0750 to 9520.0870, or hospital outpatient psychiatric departments that are designated 
322.26 	as essential community providers under section 62Q.19.
322.27 	(b) This increase applies to group skills training when provided as a component of 
322.28 	children's therapeutic services and support, psychotherapy, medication management, 
322.29 	evaluation and management, diagnostic assessment, explanation of findings, psychological 
322.30 	testing, neuropsychological services, direction of behavioral aides, and inpatient 
322.31 	consultation.
322.32 	(c) This increase does not apply to rates that are governed by section 256B.0625, 
322.33 	subdivision 30, or 256B.761, paragraph (b), other cost-based rates, rates that are 
323.1 	negotiated with the county, rates that are established by the federal government, or rates 
323.2 	that increased between January 1, 2004, and January 1, 2005.
323.3 	(d) The commissioner shall adjust rates paid to prepaid health plans under contract 
323.4 	with the commissioner to reflect the rate increases provided in paragraphparagraphs (a), 
323.5 	(e), and (f). The prepaid health plan must pass this rate increase to the providers identified 
323.6 	in paragraphparagraphs (a), (e), (f), and (g).
323.7 	(e) Payment rates shall be increased by 23.7 percent over the rates in effect on 
323.8 	January 1, 2006, for:
323.9 	(1) medication education services provided on or after January 1, 2008, by adult 
323.10 	rehabilitative mental health services providers certified under section 256B.0623; and
323.11 	(2) mental health behavioral aide services provided on or after January 1, 2008, by 
323.12 	children's therapeutic services and support providers certified under section 256B.0943.
323.13 	(f) For services defined in paragraph (b) and rendered on or after January 1, 2008, by 
323.14 	children's therapeutic services and support providers certified under section 256B.0943 
323.15 	and not already included in paragraph (a), payment rates shall be increased by 23.7 percent 
323.16 	over the rates in effect on January 1, 2006.
323.17 	(g) Payment rates shall be increased by 2.3 percent over the rates in effect on 
323.18 	December 31, 2007, for individual and family skills training provided on or after January 
323.19 	1, 2008, by children's therapeutic services and support providers certified under section 
323.20 	256B.0943.

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

323.22 	Sec. 28. Minnesota Statutes 2006, section 256D.03, subdivision 4, is amended to read:
323.23 		Subd. 4.General assistance medical care; services. (a)(i) For a person who is 
323.24 	eligible under subdivision 3, paragraph (a), clause (2), item (i), general assistance medical 
323.25 	care covers, except as provided in paragraph (c):
323.26 	(1) inpatient hospital services;
323.27 	(2) outpatient hospital services;
323.28 	(3) services provided by Medicare certified rehabilitation agencies;
323.29 	(4) prescription drugs and other products recommended through the process 
323.30 	established in section 256B.0625, subdivision 13;
323.31 	(5) equipment necessary to administer insulin and diagnostic supplies and equipment 
323.32 	for diabetics to monitor blood sugar level;
323.33 	(6) eyeglasses and eye examinations provided by a physician or optometrist;
323.34 	(7) hearing aids;
323.35 	(8) prosthetic devices;
324.1 	(9) laboratory and X-ray services;
324.2 	(10) physician's services;
324.3 	(11) medical transportation except special transportation;
324.4 	(12) chiropractic services as covered under the medical assistance program;
324.5 	(13) podiatric services;
324.6 	(14) dental services as covered under the medical assistance program;
324.7 	(15) outpatient services provided by a mental health center or clinic that is under 
324.8 	contract with the county board and is established under section 245.62 mental health 
324.9 	services covered under chapter 256B;
324.10 	(16) day treatment services for mental illness provided under contract with the 
324.11 	county board;
324.12 	(17)(16) prescribed medications for persons who have been diagnosed as mentally 
324.13 	ill as necessary to prevent more restrictive institutionalization;
324.14 	(18) psychological services,(17) medical supplies and equipment, and Medicare 
324.15 	premiums, coinsurance and deductible payments;
324.16 	(19)(18) medical equipment not specifically listed in this paragraph when the use 
324.17 	of the equipment will prevent the need for costlier services that are reimbursable under 
324.18 	this subdivision;
324.19 	(20)(19) services performed by a certified pediatric nurse practitioner, a 
324.20 	certified family nurse practitioner, a certified adult nurse practitioner, a certified 
324.21 	obstetric/gynecological nurse practitioner, a certified neonatal nurse practitioner, or a 
324.22 	certified geriatric nurse practitioner in independent practice, if (1) the service is otherwise 
324.23 	covered under this chapter as a physician service, (2) the service provided on an inpatient 
324.24 	basis is not included as part of the cost for inpatient services included in the operating 
324.25 	payment rate, and (3) the service is within the scope of practice of the nurse practitioner's 
324.26 	license as a registered nurse, as defined in section 148.171;
324.27 	(21)(20) services of a certified public health nurse or a registered nurse practicing 
324.28 	in a public health nursing clinic that is a department of, or that operates under the direct 
324.29 	authority of, a unit of government, if the service is within the scope of practice of the 
324.30 	public health nurse's license as a registered nurse, as defined in section 148.171; and
324.31 	(22)(21) telemedicine consultations, to the extent they are covered under section 
324.32 	256B.0625, subdivision 3b; and.
324.33 	(23) mental health telemedicine and psychiatric consultation as covered under 
324.34 	section 256B.0625, subdivisions 46 and 48.
324.35 	(ii) Effective October 1, 2003, for a person who is eligible under subdivision 3, 
324.36 	paragraph (a), clause (2), item (ii), general assistance medical care coverage is limited 
325.1 	to inpatient hospital services, including physician services provided during the inpatient 
325.2 	hospital stay. A $1,000 deductible is required for each inpatient hospitalization.
325.3 	(b) Effective August 1, 2005, sex reassignment surgery is not covered under this 
325.4 	subdivision.
325.5 	(c) In order to contain costs, the commissioner of human services shall select 
325.6 	vendors of medical care who can provide the most economical care consistent with high 
325.7 	medical standards and shall where possible contract with organizations on a prepaid 
325.8 	capitation basis to provide these services. The commissioner shall consider proposals by 
325.9 	counties and vendors for prepaid health plans, competitive bidding programs, block grants, 
325.10 	or other vendor payment mechanisms designed to provide services in an economical 
325.11 	manner or to control utilization, with safeguards to ensure that necessary services are 
325.12 	provided. Before implementing prepaid programs in counties with a county operated or 
325.13 	affiliated public teaching hospital or a hospital or clinic operated by the University of 
325.14 	Minnesota, the commissioner shall consider the risks the prepaid program creates for the 
325.15 	hospital and allow the county or hospital the opportunity to participate in the program in a 
325.16 	manner that reflects the risk of adverse selection and the nature of the patients served by 
325.17 	the hospital, provided the terms of participation in the program are competitive with the 
325.18 	terms of other participants considering the nature of the population served. Payment for 
325.19 	services provided pursuant to this subdivision shall be as provided to medical assistance 
325.20 	vendors of these services under sections 256B.02, subdivision 8, and 256B.0625. For 
325.21 	payments made during fiscal year 1990 and later years, the commissioner shall consult 
325.22 	with an independent actuary in establishing prepayment rates, but shall retain final control 
325.23 	over the rate methodology.
325.24 	(d) Recipients eligible under subdivision 3, paragraph (a), shall pay the following 
325.25 	co-payments for services provided on or after October 1, 2003:
325.26 	(1) $25 for eyeglasses;
325.27 	(2) $25 for nonemergency visits to a hospital-based emergency room;
325.28 	(3) $3 per brand-name drug prescription and $1 per generic drug prescription, 
325.29 	subject to a $12 per month maximum for prescription drug co-payments. No co-payments 
325.30 	shall apply to antipsychotic drugs when used for the treatment of mental illness; and
325.31 	(4) 50 percent coinsurance on restorative dental services.
325.32 	(e) Co-payments shall be limited to one per day per provider for nonpreventive visits, 
325.33 	eyeglasses, and nonemergency visits to a hospital-based emergency room. Recipients of 
325.34 	general assistance medical care are responsible for all co-payments in this subdivision. 
325.35 	The general assistance medical care reimbursement to the provider shall be reduced by 
325.36 	the amount of the co-payment, except that reimbursement for prescription drugs shall not 
326.1 	be reduced once a recipient has reached the $12 per month maximum for prescription 
326.2 	drug co-payments. The provider collects the co-payment from the recipient. Providers 
326.3 	may not deny services to recipients who are unable to pay the co-payment, except as 
326.4 	provided in paragraph (f).
326.5 	(f) If it is the routine business practice of a provider to refuse service to an individual 
326.6 	with uncollected debt, the provider may include uncollected co-payments under this 
326.7 	section. A provider must give advance notice to a recipient with uncollected debt before 
326.8 	services can be denied.
326.9 	(g) Any county may, from its own resources, provide medical payments for which 
326.10 	state payments are not made.
326.11 	(h) Chemical dependency services that are reimbursed under chapter 254B must not 
326.12 	be reimbursed under general assistance medical care.
326.13 	(i) The maximum payment for new vendors enrolled in the general assistance 
326.14 	medical care program after the base year shall be determined from the average usual and 
326.15 	customary charge of the same vendor type enrolled in the base year.
326.16 	(j) The conditions of payment for services under this subdivision are the same as the 
326.17 	conditions specified in rules adopted under chapter 256B governing the medical assistance 
326.18 	program, unless otherwise provided by statute or rule.
326.19 	(k) Inpatient and outpatient payments shall be reduced by five percent, effective July 
326.20 	1, 2003. This reduction is in addition to the five percent reduction effective July 1, 2003, 
326.21 	and incorporated by reference in paragraph (i).
326.22 	(l) Payments for all other health services except inpatient, outpatient, and pharmacy 
326.23 	services shall be reduced by five percent, effective July 1, 2003.
326.24 	(m) Payments to managed care plans shall be reduced by five percent for services 
326.25 	provided on or after October 1, 2003.
326.26 	(n) A hospital receiving a reduced payment as a result of this section may apply the 
326.27 	unpaid balance toward satisfaction of the hospital's bad debts.
326.28 	(o) Fee-for-service payments for nonpreventive visits shall be reduced by $3 
326.29 	for services provided on or after January 1, 2006. For purposes of this subdivision, a 
326.30 	visit means an episode of service which is required because of a recipient's symptoms, 
326.31 	diagnosis, or established illness, and which is delivered in an ambulatory setting by 
326.32 	a physician or physician ancillary, chiropractor, podiatrist, advance practice nurse, 
326.33 	audiologist, optician, or optometrist.
326.34 	(p) Payments to managed care plans shall not be increased as a result of the removal 
326.35 	of the $3 nonpreventive visit co-payment effective January 1, 2006.
327.1 	(q) Payments for mental health services added as covered benefits after December 
327.2 	31, 2007, are not subject to the reductions in paragraphs (i), (k), (l), and (m).

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

327.5 	Sec. 29. Minnesota Statutes 2006, section 256L.03, subdivision 1, is amended to read:
327.6 		Subdivision 1.Covered health services. For individuals under section 256L.04, 
327.7 	subdivision 7, with income no greater than 75 percent of the federal poverty guidelines 
327.8 	or for families with children under section 256L.04, subdivision 1, all subdivisions of 
327.9 	this section apply. "Covered health services" means the health services reimbursed 
327.10 	under chapter 256B, with the exception of inpatient hospital services, special education 
327.11 	services, private duty nursing services, adult dental care services other than services 
327.12 	covered under section 256B.0625, subdivision 9, orthodontic services, nonemergency 
327.13 	medical transportation services, personal care assistant and case management services, 
327.14 	nursing home or intermediate care facilities services, inpatient mental health services, 
327.15 	and chemical dependency services. Outpatient mental health services covered under the 
327.16 	MinnesotaCare program are limited to diagnostic assessments, psychological testing, 
327.17 	explanation of findings, mental health telemedicine, psychiatric consultation, medication 
327.18 	management by a physician, day treatment, partial hospitalization, and individual, family, 
327.19 	and group psychotherapy.
327.20 	No public funds shall be used for coverage of abortion under MinnesotaCare 
327.21 	except where the life of the female would be endangered or substantial and irreversible 
327.22 	impairment of a major bodily function would result if the fetus were carried to term; or 
327.23 	where the pregnancy is the result of rape or incest.
327.24 	Covered health services shall be expanded as provided in this section.

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

327.27 	Sec. 30. Minnesota Statutes 2006, section 256L.03, subdivision 5, is amended to read:
327.28 		Subd. 5.Co-payments and coinsurance. (a) Except as provided in paragraphs (b) 
327.29 	and (c), the MinnesotaCare benefit plan shall include the following co-payments and 
327.30 	coinsurance requirements for all enrollees:
327.31 	(1) ten percent of the paid charges for inpatient hospital services for adult enrollees, 
327.32 	subject to an annual inpatient out-of-pocket maximum of $1,000 per individual and 
327.33 	$3,000 per family;
328.1 	(2) $3 per prescription for adult enrollees;
328.2 	(3) $25 for eyeglasses for adult enrollees;
328.3 	(4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an 
328.4 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
328.5 	established illness, and which is delivered in an ambulatory setting by a physician or 
328.6 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
328.7 	audiologist, optician, or optometrist; and
328.8 	(5) $6 for nonemergency visits to a hospital-based emergency room.
328.9 	(b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of 
328.10 	children under the age of 21 in households with family income equal to or less than 175 
328.11 	percent of the federal poverty guidelines. Paragraph (a), clause (1), does not apply to 
328.12 	parents and relative caretakers of children under the age of 21 in households with family 
328.13 	income greater than 175 percent of the federal poverty guidelines for inpatient hospital 
328.14 	admissions occurring on or after January 1, 2001.
328.15 	(c) Paragraph (a), clauses (1) to (4), do not apply to pregnant women and children 
328.16 	under the age of 21.
328.17 	(d) Paragraph (a), clause (4), does not apply to mental health services.
328.18 	(e) Adult enrollees with family gross income that exceeds 175 percent of the 
328.19 	federal poverty guidelines and who are not pregnant shall be financially responsible for 
328.20 	the coinsurance amount, if applicable, and amounts which exceed the $10,000 inpatient 
328.21 	hospital benefit limit.
328.22 	(e) (f) When a MinnesotaCare enrollee becomes a member of a prepaid health plan, 
328.23 	or changes from one prepaid health plan to another during a calendar year, any charges 
328.24 	submitted towards the $10,000 annual inpatient benefit limit, and any out-of-pocket 
328.25 	expenses incurred by the enrollee for inpatient services, that were submitted or incurred 
328.26 	prior to enrollment, or prior to the change in health plans, shall be disregarded.

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

328.32 	Sec. 32. Minnesota Statutes 2006, section 609.115, subdivision 9, is amended to read:
328.33 		Subd. 9.Compulsive gambling assessment required. (a) If a person is convicted 
328.34 	of theft under section 609.52, embezzlement of public funds under section 609.54, or 
329.1 	forgery under section 609.625, 609.63, or 609.631, the probation officer shall determine in 
329.2 	the report prepared under subdivision 1 whether or not compulsive gambling contributed 
329.3 	to the commission of the offense. If so, the report shall contain the results of a compulsive 
329.4 	gambling assessment conducted in accordance with this subdivision. The probation officer 
329.5 	shall make an appointment for the offender to undergo the assessment if so indicated. 
329.6 	(b) The compulsive gambling assessment report must include a recommended level 
329.7 	of treatment for the offender if the assessor concludes that the offender is in need of 
329.8 	compulsive gambling treatment. The assessment must be conducted by an assessor 
329.9 	qualified either under section 245.98, subdivision 2a Minnesota Rules, part 9585.0040, 
329.10 	subpart 1, item C, or qualifications determined to be equivalent by the commissioner, to 
329.11 	perform these assessments or to provide compulsive gambling treatment. An assessor 
329.12 	providing a compulsive gambling assessment may not have any direct or shared financial 
329.13 	interest or referral relationship resulting in shared financial gain with a treatment provider. 
329.14 	If an independent assessor is not available, the probation officer may use the services of an 
329.15 	assessor with a financial interest or referral relationship as authorized under rules adopted 
329.16 	by the commissioner of human services under section 245.98, subdivision 2a. 
329.17 	(c) The commissioner of human services shall reimburse the assessor for the 
329.18 	costs associated with aeach compulsive gambling assessment at a rate established 
329.19 	by the commissioner up to a maximum of $100 for each assessment. To the extent 
329.20 	practicable, the commissioner shall standardize reimbursement rates for assessments. The 
329.21 	commissioner shall reimburse these coststhe assessor after receiving written verification 
329.22 	from the probation officer that the assessment was performed and found acceptable.

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

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

330.5 	Sec. 35. REGIONAL CHILDREN'S MENTAL HEALTH INITIATIVE.
 330.6 		Subdivision 1.Pilot project authorized; purpose. A two-year Regional Children's 
330.7 	Mental Health Initiative pilot project is established to improve children's mental health 
330.8 	service coordination, communication, and processes in Blue Earth, Brown, Faribault, 
330.9 	Freeborn, Le Sueur, Martin, Nicollet, Rice, Sibley, Waseca, and Watonwan Counties. The 
330.10 	purpose of the Regional Children's Mental Health Initiative will be to plan and develop 
330.11 	new programs and services related to children's mental health in south central Minnesota.
330.12 		Subd. 2.Goals. To accomplish its purpose, the Regional Children's Mental Health 
330.13 	Initiative shall have the following goals:
330.14 	(1) work to streamline delivery and regional access to services;
330.15 	(2) share strategies and resources for the management of out-of-home placements;
330.16 	(3) establish standard protocols and operating procedures for functions that are 
330.17 	performed across all counties;
330.18 	(4) share information to improve resource allocation and service delivery across 
330.19 	counties;
330.20 	(5) evaluate outcomes of various treatment alternatives;
330.21 	(6) create a network for and provide support to service delivery groups;
330.22 	(7) establish a regional process to match children in need of out-of-home placement 
330.23 	with foster homes that can meet their needs; and
330.24 	(8) recruit and retain foster homes.
330.25 		Subd. 3.Director's Council. The Director's Council shall govern the operations of 
330.26 	the Regional Children's Mental Health Initiative. Members of the Director's Council shall 
330.27 	represent each of the 11 counties participating in the pilot project.
330.28 		Subd. 4.Regional Children's Mental Health Initiative Team. The members 
330.29 	of the Regional Children's Mental Health Initiative Team shall conduct planning and 
330.30 	development of new and modified children's mental health programs and services in the 
330.31 	region. Members of the team shall reflect the cultural, demographic, and geographic 
330.32 	diversity of the region and shall be composed of representatives from each of the 
330.33 	following:
330.34 	(1) the medical community;
330.35 	(2) human services;
331.1 	(3) corrections;
331.2 	(4) education;
331.3 	(5) mental health providers and vendors;
331.4 	(6) advocacy organizations;
331.5 	(7) parents; and
331.6 	(8) children and youth.
331.7 		Subd. 5.Authority. The regional children's mental health initiative shall have the 
331.8 	authority to develop and implement the following programs:
331.9 	(1) Flexible funding payments. This program will make funds available to respond to 
331.10 	the unique and unpredictable needs of children with mental health issues such as the need 
331.11 	for prescription drugs, transportation, clothing, and assessments not otherwise available.
331.12 	(2) Transition to self-sufficiency. This program will help youths between the ages of 
331.13 	14 and 21 establish professional relationships, find jobs, build financial foundations, and 
331.14 	learn to fulfill their roles as productive citizens.
331.15 	(3) Crisis response. This program will establish public and private partnerships 
331.16 	to offer a range of options to meet the needs of children in crisis. Methods to meet 
331.17 	these needs may include accessible local services, holistic assessments, urgent care and 
331.18 	stabilization services, and telehealth for specialized diagnosis and therapeutic sessions.
331.19 	(4) Integrated services for complex conditions. This program will design, develop, 
331.20 	and implement packages of integrated services to meet the needs of children with specific, 
331.21 	complex conditions.
331.22 		Subd. 6.Evaluation and report. The regional children's mental health initiative 
331.23 	shall develop a method for evaluating the effectiveness of this pilot project focusing on 
331.24 	identifiable goals and outcomes. An interim report on the pilot project's effectiveness 
331.25 	shall be submitted to the house and senate finance committees having jurisdiction over 
331.26 	mental health, the commissioner of human services, and the Minnesota Association of 
331.27 	County Social Service Administrators no later than December 31, 2008. A final report 
331.28 	is due no later than December 31, 2009.

331.29 	Sec. 36. MINNESOTA FAMILY INVESTMENT PROGRAM AND CHILDREN'S 
331.30 	MENTAL HEALTH PILOT PROJECT.
 331.31 		Subdivision 1.Pilot project authorized. The commissioner of human services 
331.32 	shall fund a three-year pilot project to measure the effect of children's identified mental 
331.33 	health needs, including social and emotional needs, on Minnesota family investment 
331.34 	program (MFIP) participants' ability to obtain and retain employment. The project shall 
332.1 	also measure the effect on work activity of MFIP participants' needs to address their 
332.2 	children's identified mental health needs.
332.3 		Subd. 2.Provider and agency proposals. (a) Interested MFIP providers and 
332.4 	agencies shall: 
332.5 	(1) submit proposals defining how they will identify participants whose children 
332.6 	have mental health needs that hinder the employment process; 
332.7 	(2) connect families with appropriate developmental, social, and emotional 
332.8 	screenings and services; and 
332.9 	(3) incorporate those services into the participant's employment plan.
332.10 	Each proposal under this paragraph must include an evaluation component.
332.11 	(b) Interested MFIP providers and agencies shall develop a protocol to inform MFIP 
332.12 	participants of the following: 
332.13 	(1) the availability of developmental, social, and emotional screening tools for 
332.14 	children and youth; 
332.15 	(2) the purpose of the screenings; 
332.16 	(3) how the information will be used to assist the participants in identifying and 
332.17 	addressing potential barriers to employment; and 
332.18 	(4) that their employment plan may be modified based on the screening results.
332.19 		Subd. 3.Program components. (a) MFIP providers shall obtain the participant's 
332.20 	written consent for participation in the pilot project, including consent for developmental, 
332.21 	social, and emotional screening.
332.22 	(b) MFIP providers shall coordinate with county social service agencies and health 
332.23 	plans to assist recipients in arranging referrals indicated by the screening results.
332.24 	(c) Tools used for developmental, social, and emotional screenings shall be approved 
332.25 	by the commissioner of human services.
332.26 		Subd. 4.Program evaluation. The commissioner of human services shall conduct 
332.27 	an evaluation of the pilot project to determine:
332.28 	(1) the number of participants who took part in the screening;
332.29 	(2) the number of children who were screened and what screening tools were used;
332.30 	(3) the number of children who were identified in the screening who needed referral 
332.31 	or follow-up services;
332.32 	(4) the number of children who received services, what agency provided the services, 
332.33 	and what type of services were provided;
332.34 	(5) the number of employment plans that were adjusted to include the activities 
332.35 	recommended in the screenings;
332.36 	(6) the changes in work participation rates;
333.1 	(7) the changes in earned income;
333.2 	(8) the changes in sanction rates; and
333.3 	(9) the participants' report of program effectiveness.
333.4 		Subd. 5.Work activity. Participant involvement in screenings and subsequent 
333.5 	referral and follow-up services shall count as work activity under Minnesota Statutes, 
333.6 	section 256J.49, subdivision 13.
333.7 		Subd. 6.Evaluation. Of the amounts appropriated, the commissioner may use up 
333.8 	to $100,000 for evaluation of this pilot.

333.9 	Sec. 37. SOCIAL AND ECONOMIC COSTS OF GAMBLING.
 333.10 		Subdivision 1.Report. The commissioner of human services, in consultation with 
333.11 	the state affiliate of the National Council on Problem Gambling, stakeholders, and licensed 
333.12 	vendors, shall prepare a report that provides a process and funding mechanism to study the 
333.13 	issues in subdivisions 2 and 3. The commissioner, in consultation with the state affiliate 
333.14 	of the National Council on Problem Gambling, stakeholders, and licensed vendors, shall 
333.15 	include in the report potential financial commitments made by stakeholders and others in 
333.16 	order to fund the study. The report is due to the legislative committees having jurisdiction 
333.17 	over compulsive gambling issues by December 1, 2007. 
333.18 		Subd. 2.Issues to be addressed. The study must address:
333.19 	(1) state, local, and tribal government policies and practices in Minnesota to legalize 
333.20 	or prohibit gambling;
333.21 	(2) the relationship between gambling and crime in Minnesota, including: (i) the 
333.22 	relationship between gambling and overall crime rates; (ii) the relationship between 
333.23 	gambling and crimes rates for specific crimes, such as forgery, domestic abuse, child 
333.24 	neglect and abuse, alcohol and drug offenses, and youth crime; and (iii) enforcement 
333.25 	and regulation practices that are intended to address the relationship between gambling 
333.26 	and levels of crime;
333.27 	(3) the relationship between expanded gambling and increased rates of problem 
333.28 	gambling in Minnesota, including the impact of pathological or problem gambling on 
333.29 	individuals, families, businesses, social institutions, and the economy;
333.30 	(4) the social impact of gambling on individuals, families, businesses, and social 
333.31 	institutions in Minnesota, including an analysis of the relationship between gambling and 
333.32 	depression, abuse, divorce, homelessness, suicide, and bankruptcy;
333.33 	(5) the economic impact of gambling on state, local, and tribal economies in 
333.34 	Minnesota; and
334.1 	(6) any other issues deemed necessary in assessing the social and economic impact 
334.2 	of gambling in Minnesota.
334.3 		Subd. 3.Quantification of social and economic impact. The study shall quantify 
334.4 	the social and economic impact on both (1) state, local, and tribal governments in 
334.5 	Minnesota, and (2) Minnesota's communities and social institutions, including individuals, 
334.6 	families, and businesses within those communities and institutions.

334.7 	Sec. 38. REVISOR'S INSTRUCTION.
 334.8 	(a) The revisor of statutes shall change the references to sections "245.487 to 
334.9 	245.4887" wherever it appears in statutes or rules to sections "245.487 to 245.4889."
334.10 	(b) The revisor of statutes shall correct all internal references that are necessary 
334.11 	from the relettering in section 20.

334.12 	Sec. 39.  REPEALER.
 334.13 	Minnesota Rules, part 9585.0030, is repealed.

334.14 	ARTICLE 9
334.15 	DEPARTMENT OF HEALTH POLICY

334.16 	Section 1. Minnesota Statutes 2006, section 62J.17, subdivision 2, is amended to read:
334.17 		Subd. 2.Definitions. For purposes of this section, the terms defined in this 
334.18 	subdivision have the meanings given.
334.19 	(a) "Access" means the financial, temporal, and geographic availability of health 
334.20 	care to individuals who need it.
334.21 	(b)(a) "Capital expenditure" means an expenditure which, under generally accepted 
334.22 	accounting principles, is not properly chargeable as an expense of operation and 
334.23 	maintenance.
334.24 	(c) "Cost" means the amount paid by consumers or third party payers for health 
334.25 	care services or products.
334.26 	(d) "Date of the major spending commitment" means the date the provider formally 
334.27 	obligated itself to the major spending commitment. The obligation may be incurred 
334.28 	by entering into a contract, making a down payment, issuing bonds or entering a loan 
334.29 	agreement to provide financing for the major spending commitment, or taking some other 
334.30 	formal, tangible action evidencing the provider's intention to make the major spending 
334.31 	commitment.
334.32 	(e)(b) "Health care service" means:
335.1 	(1) a service or item that would be covered by the medical assistance program 
335.2 	under chapter 256B if provided in accordance with medical assistance requirements to an 
335.3 	eligible medical assistance recipient; and
335.4 	(2) a service or item that would be covered by medical assistance except that it is 
335.5 	characterized as experimental, cosmetic, or voluntary.
335.6 	"Health care service" does not include retail, over-the-counter sales of 
335.7 	nonprescription drugs and other retail sales of health-related products that are not generally 
335.8 	paid for by medical assistance and other third-party coverage.
335.9 	(f)(c) "Major spending commitment" means an expenditure in excess of $1,000,000 
335.10 	for:
335.11 	(1) acquisition of a unit of medical equipment;
335.12 	(2) a capital expenditure for a single project for the purposes of providing health 
335.13 	care services, other than for the acquisition of medical equipment;
335.14 	(3) offering a new specialized service not offered before;
335.15 	(4) planning for an activity that would qualify as a major spending commitment 
335.16 	under this paragraph; or
335.17 	(5) a project involving a combination of two or more of the activities in clauses 
335.18 	(1) to (4).
335.19 	The cost of acquisition of medical equipment, and the amount of a capital 
335.20 	expenditure, is the total cost to the provider regardless of whether the cost is distributed 
335.21 	over time through a lease arrangement or other financing or payment mechanism.
335.22 	(g)(d) "Medical equipment" means fixed and movable equipment that is used by 
335.23 	a provider in the provision of a health care service. "Medical equipment" includes, but 
335.24 	is not limited to, the following:
335.25 	(1) an extracorporeal shock wave lithotripter;
335.26 	(2) a computerized axial tomography (CAT) scanner;
335.27 	(3) a magnetic resonance imaging (MRI) unit;
335.28 	(4) a positron emission tomography (PET) scanner; and
335.29 	(5) emergency and nonemergency medical transportation equipment and vehicles.
335.30 	(h)(e) "New specialized service" means a specialized health care procedure or 
335.31 	treatment regimen offered by a provider that was not previously offered by the provider, 
335.32 	including, but not limited to:
335.33 	(1) cardiac catheterization services involving high-risk patients as defined in the 
335.34 	Guidelines for Coronary Angiography established by the American Heart Association 
335.35 	and the American College of Cardiology;
336.1 	(2) heart, heart-lung, liver, kidney, bowel, or pancreas transplantation service, or 
336.2 	any other service for transplantation of any other organ;
336.3 	(3) megavoltage radiation therapy;
336.4 	(4) open heart surgery;
336.5 	(5) neonatal intensive care services; and
336.6 	(6) any new medical technology for which premarket approval has been granted by 
336.7 	the United States Food and Drug Administration, excluding implantable and wearable 
336.8 	devices.
336.9 	(f) "Specialty care" includes but is not limited to cardiac, neurology, orthopedic, 
336.10 	obstetrics, mental health, chemical dependency, and emergency services.

336.11 	Sec. 2. Minnesota Statutes 2006, section 62J.17, subdivision 4a, is amended to read:
336.12 		Subd. 4a.Expenditure reporting. (a) A provider making a major spending 
336.13 	commitment after April 1, 1992, shall submit notification of the expenditure to the 
336.14 	commissioner and provide the commissioner with any relevant background information.
336.15 	(b) Notification must include a report, submitted within 60 days after the date of the 
336.16 	major spending commitment, using terms conforming to the definitions in section 62J.03
336.17 	and this section. Each report is subject to retrospective review and must contain: 
336.18 	(1) a detailed description of the major spending commitment, including the specific 
336.19 	dollar amount of each expenditure, and its purpose;
336.20 	(2) the date of the major spending commitment;
336.21 	(3) a statement of the expected impact that the major spending commitment will 
336.22 	have on charges by the provider to patients and third party payers;
336.23 	(4) a statement of the expected impact on the clinical effectiveness or quality of care 
336.24 	received by the patients that the provider expects to serve;
336.25 	(5) a statement of the extent to which equivalent services or technology are already 
336.26 	available to the provider's actual and potential patient population;
336.27 	(6) a statement of the distance from which the nearest equivalent services or 
336.28 	technology are already available to the provider's actual and potential population;
336.29 	(7) a statement describing the pursuit of any lawful collaborative arrangements; and
336.30 	(8) a statement of assurance that the provider will not use, purchase, or perform 
336.31 	health care technologies and procedures that are not clinically effective and cost-effective, 
336.32 	unless the technology is used for experimental or research purposes to determine whether 
336.33 	a technology or procedure is clinically effective and cost-effective.
336.34 	The provider may submit any additional information that it deems relevant.
337.1 	(c) The commissioner may request additional information from a provider for the 
337.2 	purpose of review of a report submitted by that provider, and may consider relevant 
337.3 	information from other sources. A provider shall provide any information requested by 
337.4 	the commissioner within the time period stated in the request, or within 30 days after the 
337.5 	date of the request if the request does not state a time.
337.6 	(d) If the provider fails to submit a complete and timely expenditure report, including 
337.7 	any additional information requested by the commissioner, the commissioner may make 
337.8 	the provider's subsequent major spending commitments subject to the procedures of 
337.9 	prospective review and approval under subdivision 6a.
337.10 	Each hospital, outpatient surgical center, diagnostic imaging center, and physician 
337.11 	clinic shall report annually to the commissioner on all major spending commitments, 
337.12 	in the form and manner specified by the commissioner. The report shall include the 
337.13 	following information:
337.14 	(a) a description of major spending commitments made during the previous year, 
337.15 	including the total dollar amount of major spending commitments and purpose of the 
337.16 	expenditures;
337.17 	(b) the cost of land acquisition, construction of new facilities, and renovation of 
337.18 	existing facilities;
337.19 	(c) the cost of purchased or leased medical equipment, by type of equipment;
337.20 	(d) expenditures by type for specialty care and new specialized services;
337.21 	(e) information on the amount and types of added capacity for diagnostic imaging 
337.22 	services, outpatient surgical services, and new specialized services; and
337.23 	(f) information on investments in electronic medical records systems.
337.24 	For hospitals and outpatient surgical centers, this information shall be included in reports 
337.25 	to the commissioner that are required under section 144.698. For diagnostic imaging 
337.26 	centers, this information shall be included in reports to the commissioner that are required 
337.27 	under section 144.565. For physician clinics, this information shall be included in reports 
337.28 	to the commissioner that are required under section 62J.41. For all other health care 
337.29 	providers that are subject to this reporting requirement, reports must be submitted to the 
337.30 	commissioner by March 1 each year for the preceding calendar year.

337.31 	Sec. 3. Minnesota Statutes 2006, section 62J.17, subdivision 6a, is amended to read:
337.32 		Subd. 6a.Prospective review and approval. (a) No health care provider subject 
337.33 	to prospective review under this subdivision shall make a major spending commitment 
337.34 	unless:
338.1 	(1) the provider has filed an application with the commissioner to proceed with the 
338.2 	major spending commitment and has provided all supporting documentation and evidence 
338.3 	requested by the commissioner; and
338.4 	(2) the commissioner determines, based upon this documentation and evidence, that 
338.5 	the major spending commitment is appropriate under the criteria provided in subdivision 
338.6 	5a in light of the alternatives available to the provider.
338.7 	(b) A provider subject to prospective review and approval shall submit an 
338.8 	application to the commissioner before proceeding with any major spending commitment. 
338.9 	The application must address each item listed in subdivision 4a, paragraph (a), and must 
338.10 	also include documentation to support the response to each item. The provider may 
338.11 	submit information, with supporting documentation, regarding why the major spending 
338.12 	commitment should be excepted from prospective review under subdivision 7. The 
338.13 	submission may be made either in addition to or instead of the submission of information 
338.14 	relating to the items listed in subdivision 4a, paragraph (a).
338.15 	(c) The commissioner shall determine, based upon the information submitted, 
338.16 	whether the major spending commitment is appropriate under the criteria provided 
338.17 	in subdivision 5a, or whether it should be excepted from prospective review under 
338.18 	subdivision 7. In making this determination, the commissioner may also consider relevant 
338.19 	information from other sources. At the request of the commissioner, the health technology 
338.20 	advisory committee shall convene an expert review panel made up of persons with 
338.21 	knowledge and expertise regarding medical equipment, specialized services, health care 
338.22 	expenditures, and capital expenditures to review applications and make recommendations 
338.23 	to the commissioner. The commissioner shall make a decision on the application within 
338.24 	60 days after an application is received.
338.25 	(d) The commissioner of health has the authority to issue fines, seek injunctions, and 
338.26 	pursue other remedies as provided by law.

338.27 	Sec. 4. Minnesota Statutes 2006, section 62J.17, subdivision 7, is amended to read:
338.28 		Subd. 7.Exceptions. (a) The retrospective review process as described in 
338.29 	subdivision 5a and the prospective review and approval process as described in subdivision 
338.30 	6a reporting requirement in subdivision 4adodoes not apply to:
338.31 	(1) a major spending commitment to replace existing equipment with comparable 
338.32 	equipment used for direct patient care, upgrades of equipment beyond the current model, 
338.33 	or comparable model must be reported;
339.1 	(2) (1) a major spending commitment made by a research and teaching institution 
339.2 	for purposes of conducting medical education, medical research supported or sponsored 
339.3 	by a medical school, or by a federal or foundation grant or clinical trials;
339.4 	(3) a major spending commitment to repair, remodel, or replace existing buildings or 
339.5 	fixtures if, in the judgment of the commissioner, the project does not involve a substantial 
339.6 	expansion of service capacity or a substantial change in the nature of health care services 
339.7 	provided;
339.8 	(4) (2) a major spending commitment for building maintenance including heating, 
339.9 	water, electricity, and other maintenance-related expenditures; and
339.10 	(5) (3) a major spending commitment for activities, not directly related to the 
339.11 	delivery of patient care services, including food service, laundry, housekeeping, and 
339.12 	other service-related activities; and.
339.13 	(6) a major spending commitment for computer equipment or data systems not 
339.14 	directly related to the delivery of patient care services, including computer equipment or 
339.15 	data systems related to medical record automation.
339.16 	(b) In addition to the exceptions listed in paragraph (a), the prospective review and 
339.17 	approval process described in subdivision 6a reporting requirement in subdivision 4a does 
339.18 	not apply to mergers, acquisitions, and other changes in ownership or control that, in the 
339.19 	judgment of the commissioner, do not involve a substantial expansion of service capacity 
339.20 	or a substantial change in the nature of health care services provided.

339.21 	Sec. 5. Minnesota Statutes 2006, section 62J.41, subdivision 1, is amended to read:
339.22 		Subdivision 1.Cost containment data to be collected from providers. The 
339.23 	commissioner shall require health care providers to collect and provide both patient 
339.24 	specific information and descriptive and financial aggregate data on:
339.25 	(1) the total number of patients served;
339.26 	(2) the total number of patients served by state of residence and Minnesota county;
339.27 	(3) the site or sites where the health care provider provides services;
339.28 	(4) the number of individuals employed, by type of employee, by the health care 
339.29 	provider;
339.30 	(5) the services and their costs for which no payment was received;
339.31 	(6) total revenue by type of payer or by groups of payers, including but not limited 
339.32 	to, revenue from Medicare, medical assistance, MinnesotaCare, nonprofit health service 
339.33 	plan corporations, commercial insurers, health maintenance organizations, and individual 
339.34 	patients;
339.35 	(7) revenue from research activities;
340.1 	(8) revenue from educational activities;
340.2 	(9) revenue from out-of-pocket payments by patients;
340.3 	(10) revenue from donations; and
340.4 	(11) a report on health care capital expenditures during the previous year, as required 
340.5 	by section 62J.17; and
340.6 	(11) (12) any other data required by the commissioner, including data in 
340.7 	unaggregated form, for the purposes of developing spending estimates, setting spending 
340.8 	limits, monitoring actual spending, and monitoring costs.
340.9 	The commissioner may, by rule, modify the data submission categories listed above if the 
340.10 	commissioner determines that this will reduce the reporting burden on providers without 
340.11 	having a significant negative effect on necessary data collection efforts.

340.12 	Sec. 6. Minnesota Statutes 2006, section 62J.52, subdivision 1, is amended to read:
340.13 		Subdivision 1.Uniform billing form CMS 1450. (a) On and after January 1, 
340.14 	1996, all institutional inpatient hospital services, ancillary services, institutionally owned 
340.15 	or operated outpatient services rendered by providers in Minnesota, and institutional 
340.16 	or noninstitutional home health services that are not being billed using an equivalent 
340.17 	electronic billing format, must be billed using the uniform billing form CMS 1450, except 
340.18 	as provided in subdivision 5.
340.19 	(b) The instructions and definitions for the use of the uniform billing form CMS 
340.20 	1450 shall be in accordance with the uniform billing form manual specified by the 
340.21 	commissioner. In promulgating these instructions, the commissioner may utilize the 
340.22 	manual developed by the National Uniform Billing Committee, as adopted and finalized 
340.23 	by the Minnesota Uniform Billing Committee.
340.24 	(c) Services to be billed using the uniform billing form CMS 1450 include: 
340.25 	institutional inpatient hospital services and distinct units in the hospital such as psychiatric 
340.26 	unit services, physical therapy unit services, swing bed (SNF) services, inpatient state 
340.27 	psychiatric hospital services, inpatient skilled nursing facility services, home health 
340.28 	services (Medicare part A), and hospice services; ancillary services, where benefits are 
340.29 	exhausted or patient has no Medicare part A, from hospitals, state psychiatric hospitals, 
340.30 	skilled nursing facilities, and home health (Medicare part B); institutional owned or 
340.31 	operated outpatient services such as waivered services, hospital outpatient services, 
340.32 	including ambulatory surgical center services, hospital referred laboratory services, 
340.33 	hospital-based ambulance services, and other hospital outpatient services, skilled nursing 
340.34 	facilities, home health, freestanding renal dialysis centers, comprehensive outpatient 
340.35 	rehabilitation facilities (CORF), outpatient rehabilitation facilities (ORF), rural health 
341.1 	clinics, and community mental health centers; home health services such as home health 
341.2 	intravenous therapy providers, waivered services, personal care attendants, and hospice; 
341.3 	and any other health care provider certified by the Medicare program to use this form.
341.4 	(d) On and after January 1, 1996, a mother and newborn child must be billed 
341.5 	separately, and must not be combined on one claim form.
341.6 	(e) Services provided by Medicare Critical Access Hospitals electing Method 
341.7 	II billing will be allowed an exception to this provision to allow the inclusion of the 
341.8 	professional fees on the CMS 1450.

341.9 	Sec. 7. Minnesota Statutes 2006, section 62J.52, subdivision 2, is amended to read:
341.10 		Subd. 2.Uniform billing form CMS 1500. (a) On and after January 1, 1996, all 
341.11 	noninstitutional health care services rendered by providers in Minnesota except dental 
341.12 	or pharmacy providers, that are not currently being billed using an equivalent electronic 
341.13 	billing format, must be billed using the health insurance claim form CMS 1500, except as 
341.14 	provided in subdivision 5.
341.15 	(b) The instructions and definitions for the use of the uniform billing form CMS 
341.16 	1500 shall be in accordance with the manual developed by the Administrative Uniformity 
341.17 	Committee entitled standards for the use of the CMS 1500 form, dated February 1994, 
341.18 	as further defined by the commissioner.
341.19 	(c) Services to be billed using the uniform billing form CMS 1500 include physician 
341.20 	services and supplies, durable medical equipment, noninstitutional ambulance services, 
341.21 	independent ancillary services including occupational therapy, physical therapy, speech 
341.22 	therapy and audiology, home infusion therapy, podiatry services, optometry services, 
341.23 	mental health licensed professional services, substance abuse licensed professional 
341.24 	services, nursing practitioner professional services, certified registered nurse anesthetists, 
341.25 	chiropractors, physician assistants, laboratories, medical suppliers, and other health care 
341.26 	providers such as day activity centers and freestanding ambulatory surgical centers.
341.27 	(d) Services provided by Medicare Critical Access Hospitals electing Method 
341.28 	II billing will be allowed an exception to this provision to allow the inclusion of the 
341.29 	professional fees on the CMS 1450.

341.30 	Sec. 8. Minnesota Statutes 2006, section 62J.60, subdivision 2, is amended to read:
341.31 		Subd. 2.General characteristics. (a) The Minnesota uniform health care 
341.32 	identification card must be a preprinted card constructed of plastic, paper, or any other 
341.33 	medium that conforms with ANSI and ISO 7810 physical characteristics standards. The 
341.34 	card dimensions must also conform to ANSI and ISO 7810 physical characteristics 
342.1 	standard. The use of a signature panel is optional. The uniform prescription drug 
342.2 	information contained on the card must conform with the format adopted by the NCPDP 
342.3 	and, except as provided in subdivision 3, paragraph (a), clause (2), must include all of 
342.4 	the fields required to submit a claim in conformance with the most recent pharmacy 
342.5 	identification card implementation guide produced by the NCPDP. All information 
342.6 	required to submit a prescription drug claim, exclusive of information provided on a 
342.7 	prescription that is required by law, must be included on the card in a clear, readable, and 
342.8 	understandable manner. If a health benefit plan requires a conditional or situational field, 
342.9 	as defined by the NCPDP, the conditional or situational field must conform to the most 
342.10 	recent pharmacy information card implementation guide produced by the NCPDP.
342.11 	(b) The Minnesota uniform health care identification card must have an essential 
342.12 	information window on the front side with the following data elements: card issuer name, 
342.13 	electronic transaction routing information, card issuer identification number, cardholder 
342.14 	(insured) identification number, and cardholder (insured) identification name. No optional 
342.15 	data may be interspersed between these data elements. 
342.16 	(c) Standardized labels are required next to human readable data elements and 
342.17 	must come before the human data elements.

342.18 	Sec. 9. Minnesota Statutes 2006, section 62J.60, subdivision 3, is amended to read:
342.19 		Subd. 3.Human readable data elements. (a) The following are the minimum 
342.20 	human readable data elements that must be present on the front side of the Minnesota 
342.21 	uniform health care identification card:
342.22 	(1) card issuer name or logo, which is the name or logo that identifies the card issuer. 
342.23 	The card issuer name or logo may be located at the top of the card. No standard label 
342.24 	is required for this data element;
342.25 	(2) complete electronic transaction routing information including, at a minimum, 
342.26 	the international identification number. The standardized label of this data element 
342.27 	is "RxBIN." Processor control numbers and group numbers are required if needed to 
342.28 	electronically process a prescription drug claim. The standardized label for the process 
342.29 	control numbers data element is "RxPCN" and the standardized label for the group 
342.30 	numbers data element is "RxGrp," except that if the group number data element is a 
342.31 	universal element to be used by all health care providers, the standardized label may be 
342.32 	"Grp." To conserve vertical space on the card, the international identification number and 
342.33 	the processor control number may be printed on the same line;
343.1 	 (3) cardholder (insured) identification number, which is the unique identification 
343.2 	number of the individual card holder established and defined under this section. The 
343.3 	standardized label for the data element is "ID";
343.4 	(4) cardholder (insured) identification name, which is the name of the individual 
343.5 	card holder. The identification name must be formatted as follows: first name, space, 
343.6 	optional middle initial, space, last name, optional space and name suffix. The standardized 
343.7 	label for this data element is "Name";
343.8 	(5) care type, which is the description of the group purchaser's plan product under 
343.9 	which the beneficiary is covered. The description shall include the health plan company 
343.10 	name and the plan or product name. The standardized label for this data element is 
343.11 	"Care Type";
343.12 	(6) service type, which is the description of coverage provided such as hospital, 
343.13 	dental, vision, prescription, or mental health. The standard label for this data element 
343.14 	is "Svc Type"; and
343.15 	(7) provider/clinic name, which is the name of the primary care clinic the card 
343.16 	holder is assigned to by the health plan company. The standard label for this field is 
343.17 	"PCP." This information is mandatory only if the health plan company assigns a specific 
343.18 	primary care provider to the card holder.
343.19 	(b) The following human readable data elements shall be present on the back side 
343.20 	of the Minnesota uniform health care identification card. These elements must be left 
343.21 	justified, and no optional data elements may be interspersed between them:
343.22 	(1) claims submission names and addresses, which are the names and addresses of 
343.23 	the entity or entities to which claims should be submitted. If different destinations are 
343.24 	required for different types of claims, this must be labeled;
343.25 	(2) telephone numbers and names that pharmacies and other health care providers 
343.26 	may call for assistance. These telephone numbers and names are required on the back 
343.27 	side of the card only if one of the contacts listed in clause (3) cannot provide pharmacies 
343.28 	or other providers with assistance or with the telephone numbers and names of contacts 
343.29 	for assistance; and
343.30 	(3) telephone numbers and names; which are the telephone numbers and names of the 
343.31 	following contacts with a standardized label describing the service function as applicable:
343.32 	(i) eligibility and benefit information;
343.33 	(ii) utilization review;
343.34 	(iii) precertification; or
343.35 	(iv) customer services.
344.1 	(c) The following human readable data elements are mandatory on the back 
344.2 	side of the Minnesota uniform health care identification card for health maintenance 
344.3 	organizations:
344.4 	(1) emergency care authorization telephone number or instruction on how to receive 
344.5 	authorization for emergency care. There is no standard label required for this information; 
344.6 	and
344.7 	(2) one of the following:
344.8 	(i) telephone number to call to appeal to or file a complaint with the commissioner of 
344.9 	health; or
344.10 	(ii) for persons enrolled under section 256B.69, 256D.03, or 256L.12, the telephone 
344.11 	number to call to file a complaint with the ombudsperson designated by the commissioner 
344.12 	of human services under section 256B.69 and the address to appeal to the commissioner of 
344.13 	human services. There is no standard label required for this information. 
344.14 	(d) All human readable data elements not required under paragraphs (a) to (c) are 
344.15 	optional and may be used at the issuer's discretion.

344.16 	Sec. 10. Minnesota Statutes 2006, section 62Q.80, subdivision 3, is amended to read:
344.17 		Subd. 3.Approval.  (a) Prior to the operation of a community-based health care 
344.18 	coverage program, a community-based health initiative shall submit to the commissioner 
344.19 	of health for approval the community-based health care coverage program developed by 
344.20 	the initiative. The commissioner shall only approve a program that has been awarded 
344.21 	a community access program grant from the United States Department of Health and 
344.22 	Human Services. The commissioner shall ensure that the program meets the federal grant 
344.23 	requirements and any requirements described in this section and is actuarially sound based 
344.24 	on a review of appropriate records and methods utilized by the community-based health 
344.25 	initiative in establishing premium rates for the community-based health care coverage 
344.26 	program. 
344.27 	(b) Prior to approval, the commissioner shall also ensure that:
344.28 	(1) the benefits offered comply with subdivision 8 and that there are adequate 
344.29 	numbers of health care providers participating in the community-based health network to 
344.30 	deliver the benefits offered under the program;
344.31 	(2) the activities of the program are limited to activities that are exempt under this 
344.32 	section or otherwise from regulation by the commissioner of commerce;
344.33 	(3) the complaint resolution process meets the requirements of subdivision 10; and 
344.34 	(4) the data privacy policies and procedures comply with state and federal law.

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

345.14 	Sec. 12. Minnesota Statutes 2006, section 62Q.80, subdivision 13, is amended to read:
345.15 		Subd. 13.Report.  (a) The initiative shall submit quarterly status reports to the 
345.16 	commissioner of health on January 15, April 15, July 15, and October 15 of each year, 
345.17 	with the first report due January 15, 2007 2008. The status report shall include:
345.18 	(1) the financial status of the program, including the premium rates, cost per member 
345.19 	per month, claims paid out, premiums received, and administrative expenses; 
345.20 	(2) a description of the health care benefits offered and the services utilized; 
345.21 	(3) the number of employers participating, the number of employees and dependents 
345.22 	covered under the program, and the number of health care providers participating; 
345.23 	(4) a description of the health outcomes to be achieved by the program and a status 
345.24 	report on the performance measurements to be used and collected; and 
345.25 	(5) any other information requested by the commissioner of health or commerce or 
345.26 	the legislature. 
345.27 	(b) The initiative shall contract with an independent entity to conduct an evaluation 
345.28 	of the program to be submitted to the commissioners of health and commerce and the 
345.29 	legislature by January 15, 2009 2010. The evaluation shall include:
345.30 	(1) an analysis of the health outcomes established by the initiative and the 
345.31 	performance measurements to determine whether the outcomes are being achieved;
345.32 	(2) an analysis of the financial status of the program, including the claims to 
345.33 	premiums loss ratio and utilization and cost experience; 
345.34 	(3) the demographics of the enrollees, including their age, gender, family income, 
345.35 	and the number of dependents; 
346.1 	(4) the number of employers and employees who have been denied access to the 
346.2 	program and the basis for the denial; 
346.3 	(5) specific analysis on enrollees who have aggregate medical claims totaling over 
346.4 	$5,000 per year, including data on the enrollee's main diagnosis and whether all the 
346.5 	medical claims were covered by the program; 
346.6 	(6) number of enrollees referred to state public assistance programs; 
346.7 	(7) a comparison of employer-subsidized health coverage provided in a comparable 
346.8 	geographic area to the designated community-based geographic area served by the 
346.9 	program, including, to the extent available: 
346.10 	(i) the difference in the number of employers with 50 or fewer employees offering 
346.11 	employer-subsidized health coverage; 
346.12 	(ii) the difference in uncompensated care being provided in each area; and
346.13 	(iii) a comparison of health care outcomes and measurements established by the 
346.14 	initiative; and 
346.15 	(8) any other information requested by the commissioner of health or commerce.

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

346.18 	Sec. 14. Minnesota Statutes 2006, section 144.565, is amended to read:
346.19 	144.565 DIAGNOSTIC IMAGING FACILITIES.
346.20 		Subdivision 1.Utilization and services data; economic and financial interests.
 346.21 	The commissioner shall require diagnostic imaging facilities and providers of diagnostic 
346.22 	imaging services in Minnesota to annually report by March 1 each year for the preceding 
346.23 	fiscal year to the commissioner, in the form and manner specified by the commissioner:
346.24 	(1) utilization data for each health plan company and each public program, 
346.25 	including workers' compensation, as follows: of diagnostic imaging services as defined 
346.26 	in subdivision 4, paragraph (b);
346.27 	(i) the number of computerized tomography (CT) procedures performed;
346.28 	(ii) the number of magnetic resonance imaging (MRI) procedures performed; and
346.29 	(iii) the number of positron emission tomography (PET) procedures performed; and
346.30 	(2) the names of all physicians with any financial or economic interest and all other 
346.31 	individuals with a ten percent or greater financial or economic interest in the facility.;
346.32 	(3) the location where procedures were performed;
346.33 	(4) the number of units of each type of fixed, portable, and mobile scanner used at 
346.34 	each location;
347.1 	(5) the average number of hours per month each mobile scanner was operated at 
347.2 	each location;
347.3 	(6) the number of hours per month each scanner was leased, if applicable;
347.4 	(7) the total number of diagnostic imaging procedures billed for by the provider at 
347.5 	each location, by type of diagnostic imaging service as defined in subdivision 4, paragraph 
347.6 	(b); and
347.7 	(8) a report on major health care capital expenditures during the previous year, as 
347.8 	required by section 62J.17.
347.9 		Subd. 2.Commissioner's right to inspect records. If the report is not filed or 
347.10 	the commissioner of health has reason to believe the report is incomplete or false, the 
347.11 	commissioner shall have the right to inspect diagnostic imaging facility books, audits, 
347.12 	and records.
347.13 		Subd. 3.Separate reports. For a diagnostic imaging facility that is not attached 
347.14 	or not contiguous to a hospital or a hospital affiliate, the commissioner shall require 
347.15 	the information in subdivision 1 be reported separately for each detached diagnostic 
347.16 	imaging facility as part of the report required under section 144.702. If any entity owns 
347.17 	more than one diagnostic imaging facility, that entity must report by individual facility. 
347.18 	Reports must include only services that were billed by the provider of diagnostic imaging 
347.19 	services submitting the report. If a diagnostic imaging facility leases capacity, technical 
347.20 	services, or professional services to one or more other providers of diagnostic imaging 
347.21 	services, each provider must submit a separate annual report to the commissioner for all 
347.22 	diagnostic imaging services that it provided and billed. The owner of the leased capacity 
347.23 	must provide a report listing the names and addresses of providers to whom the diagnostic 
347.24 	imaging services and equipment were leased.
347.25 		Subd. 4.Definitions. For purposes of this section, the following terms have the 
347.26 	meanings given:
347.27 	(a) "Diagnostic imaging facility" means a health care facility that providesis not 
347.28 	a hospital or location licensed as a hospital which offers diagnostic imaging services 
347.29 	through the use of ionizing radiation or other imaging technique including, but not limited 
347.30 	to magnetic resonance imaging (MRI) or computerized tomography (CT) scan on a 
347.31 	freestanding or mobile basis in Minnesota, regardless of whether the equipment used 
347.32 	to provide the service is owned or leased. For the purposes of this section, diagnostic 
347.33 	imaging facility includes, but is not limited to, facilities such as a physician's office, clinic, 
347.34 	mobile transport vehicle, outpatient imaging center, or surgical center.
347.35 	(b) "Diagnostic imaging service" means the use of ionizing radiation or other 
347.36 	imaging technique on a human patient including, but not limited to, magnetic resonance 
348.1 	imaging (MRI) or computerized tomography (CT), positron emission tomography (PET), 
348.2 	or single photon emission computerized tomography (SPECT) scans using fixed, portable, 
348.3 	or mobile equipment.
348.4 	(b)(c) "Financial or economic interest" means a direct or indirect:
348.5 	(1) equity or debt security issued by an entity, including, but not limited to, shares of 
348.6 	stock in a corporation, membership in a limited liability company, beneficial interest in 
348.7 	a trust, units or other interests in a partnership, bonds, debentures, notes or other equity 
348.8 	interests or debt instruments, or any contractual arrangements;
348.9 	(2) membership, proprietary interest, or co-ownership with an individual, group, or 
348.10 	organization to which patients, clients, or customers are referred to; or
348.11 	(3) employer-employee or independent contractor relationship, including, but not 
348.12 	limited to, those that may occur in a limited partnership, profit-sharing arrangement, or 
348.13 	other similar arrangement with any facility to which patients are referred, including any 
348.14 	compensation between a facility and a health care provider, the group practice of which 
348.15 	the provider is a member or employee or a related party with respect to any of them.
348.16 	(c)(d) "Freestanding Fixed equipment" means a stationary diagnostic imaging 
348.17 	facility that is not located within a: machine installed in a permanent location.
348.18 	(1) hospital;
348.19 	(2) location licensed as a hospital; or
348.20 	(3) physician's office or clinic where the professional practice of medicine by 
348.21 	licensed physicians is the primary purpose and not the provision of ancillary services 
348.22 	such as diagnostic imaging.
348.23 	(d)(e) "Mobile equipment" means a diagnostic imaging facility that is transported to 
348.24 	various sites not including movement within a hospital or a physician's office or clinic
348.25 	machine in a self-contained transport vehicle designed to be brought to a temporary offsite 
348.26 	location to perform diagnostic imaging services.
348.27 	(f) "Portable equipment" means a diagnostic imaging machine designed to be 
348.28 	temporarily transported within a permanent location to perform diagnostic imaging 
348.29 	services.
348.30 	(g) "Provider of diagnostic imaging services" means a diagnostic imaging facility 
348.31 	or an entity that offers and bills for diagnostic imaging services at a facility owned or 
348.32 	leased by the entity.
348.33 		Subd. 5.Reports open to public inspection. All reports filed pursuant to this 
348.34 	section shall be open to public inspection.

349.1 	Sec. 15. [144.585] METHICILLIN-RESISTANT STAPHYLOCOCCUS AUREUS 
349.2 	CONTROL PROGRAMS.
349.3 	In order to improve the prevention of hospital-associated infections due 
349.4 	to methicillin-resistant Staphylococcus aureus ("MRSA"), every hospital shall 
349.5 	establish an MRSA control program that meets Minnesota Department of Health 
349.6 	MRSA recommendations as published January 15, 2008. In developing the MRSA 
349.7 	recommendations, the Department of Health shall consider the following infection control 
349.8 	practices: 
349.9 	(1) identification of MRSA-colonized patients in all intensive care units, or other 
349.10 	at-risk patients identified by the hospital; 
349.11 	(2) isolation of identified MRSA-colonized or MRSA-infected patients in an 
349.12 	appropriate manner; 
349.13 	(3) adherence to hand hygiene requirements; and 
349.14 	(4) monitor trends in the incidence of MRSA in the hospital over time and modify 
349.15 	interventions if MRSA infection rates do not decrease.
349.16 	The Department of Health shall review the MRSA recommendations on an annual basis 
349.17 	and revise the recommendations as necessary, in accordance with available scientific data.

349.18 	Sec. 16. Minnesota Statutes 2006, section 144.651, subdivision 9, is amended to read:
349.19 		Subd. 9.Information about treatment. Patients and residents shall be given by 
349.20 	their physicians complete and current information concerning their diagnosis, treatment, 
349.21 	alternatives, risks, and prognosis as required by the physician's legal duty to disclose. This 
349.22 	information shall be in terms and language the patients or residents can reasonably be 
349.23 	expected to understand. Patients and residents may be accompanied by a family member 
349.24 	or other chosen representative, or both. This information shall include the likely medical 
349.25 	or major psychological results of the treatment and its alternatives. In cases where it is 
349.26 	medically inadvisable, as documented by the attending physician in a patient's or resident's 
349.27 	medical record, the information shall be given to the patient's or resident's guardian or 
349.28 	other person designated by the patient or resident as a representative. Individuals have the 
349.29 	right to refuse this information.
349.30 	Every patient or resident suffering from any form of breast cancer shall be fully 
349.31 	informed, prior to or at the time of admission and during her stay, of all alternative 
349.32 	effective methods of treatment of which the treating physician is knowledgeable, including 
349.33 	surgical, radiological, or chemotherapeutic treatments or combinations of treatments and 
349.34 	the risks associated with each of those methods.

350.1 	Sec. 17. Minnesota Statutes 2006, section 144.651, subdivision 10, is amended to read:
350.2 		Subd. 10.Participation in planning treatment; notification of family members.
 350.3 	(a) Patients and residents shall have the right to participate in the planning of their 
350.4 	health care. This right includes the opportunity to discuss treatment and alternatives 
350.5 	with individual caregivers, the opportunity to request and participate in formal care 
350.6 	conferences, and the right to include a family member or other chosen representative, or 
350.7 	both. In the event that the patient or resident cannot be present, a family member or other 
350.8 	representative chosen by the patient or resident may be included in such conferences. A 
350.9 	chosen representative may include a doula of the patient's choice.
350.10 	(b) If a patient or resident who enters a facility is unconscious or comatose or is 
350.11 	unable to communicate, the facility shall make reasonable efforts as required under 
350.12 	paragraph (c) to notify either a family member or a person designated in writing by the 
350.13 	patient as the person to contact in an emergency that the patient or resident has been 
350.14 	admitted to the facility. The facility shall allow the family member to participate in 
350.15 	treatment planning, unless the facility knows or has reason to believe the patient or 
350.16 	resident has an effective advance directive to the contrary or knows the patient or resident 
350.17 	has specified in writing that they do not want a family member included in treatment 
350.18 	planning. After notifying a family member but prior to allowing a family member to 
350.19 	participate in treatment planning, the facility must make reasonable efforts, consistent 
350.20 	with reasonable medical practice, to determine if the patient or resident has executed an 
350.21 	advance directive relative to the patient or resident's health care decisions. For purposes of 
350.22 	this paragraph, "reasonable efforts" include:
350.23 	(1) examining the personal effects of the patient or resident;
350.24 	(2) examining the medical records of the patient or resident in the possession 
350.25 	of the facility;
350.26 	(3) inquiring of any emergency contact or family member contacted under this 
350.27 	section whether the patient or resident has executed an advance directive and whether the 
350.28 	patient or resident has a physician to whom the patient or resident normally goes for 
350.29 	care; and
350.30 	(4) inquiring of the physician to whom the patient or resident normally goes for care, 
350.31 	if known, whether the patient or resident has executed an advance directive. If a facility 
350.32 	notifies a family member or designated emergency contact or allows a family member 
350.33 	to participate in treatment planning in accordance with this paragraph, the facility is not 
350.34 	liable to the patient or resident for damages on the grounds that the notification of the 
350.35 	family member or emergency contact or the participation of the family member was 
350.36 	improper or violated the patient's privacy rights.
351.1 	(c) In making reasonable efforts to notify a family member or designated emergency 
351.2 	contact, the facility shall attempt to identify family members or a designated emergency 
351.3 	contact by examining the personal effects of the patient or resident and the medical records 
351.4 	of the patient or resident in the possession of the facility. If the facility is unable to notify 
351.5 	a family member or designated emergency contact within 24 hours after the admission, 
351.6 	the facility shall notify the county social service agency or local law enforcement agency 
351.7 	that the patient or resident has been admitted and the facility has been unable to notify a 
351.8 	family member or designated emergency contact. The county social service agency and 
351.9 	local law enforcement agency shall assist the facility in identifying and notifying a family 
351.10 	member or designated emergency contact. A county social service agency or local law 
351.11 	enforcement agency that assists a facility in implementing this subdivision is not liable 
351.12 	to the patient or resident for damages on the grounds that the notification of the family 
351.13 	member or emergency contact or the participation of the family member was improper or 
351.14 	violated the patient's privacy rights.

351.15 	Sec. 18. Minnesota Statutes 2006, section 144.651, subdivision 26, is amended to read:
351.16 		Subd. 26.Right to associate. (a) Residents may meet with and receive visitors 
351.17 	and participate in activities of commercial, religious, political, as defined in section 
351.18 	203B.11 and community groups without interference at their discretion if the activities 
351.19 	do not infringe on the right to privacy of other residents or are not programmatically 
351.20 	contraindicated. This includes:
351.21 	(1) the right to join with other individuals within and outside the facility to work for 
351.22 	improvements in long-term care;
351.23 	(2) the right to visitation by an individual the patient has appointed as the patient's 
351.24 	health care agent under chapter 145C;
351.25 	(3) the right to visitation and health care decision making by an individual designated 
351.26 	by the patient under paragraph (c).
351.27 	(b) Upon admission to a facility where federal law prohibits unauthorized disclosure 
351.28 	of patient or resident identifying information to callers and visitors, the patient or 
351.29 	resident, or the legal guardian or conservator of the patient or resident, shall be given the 
351.30 	opportunity to authorize disclosure of the patient's or resident's presence in the facility 
351.31 	to callers and visitors who may seek to communicate with the patient or resident. To the 
351.32 	extent possible, the legal guardian or conservator of a patient or resident shall consider the 
351.33 	opinions of the patient or resident regarding the disclosure of the patient's or resident's 
351.34 	presence in the facility. 
352.1 	(c) Upon admission to a facility, the patient or resident, or the legal guardian 
352.2 	or conservator of the patient or resident, must be given the opportunity to designate 
352.3 	a person who is not related who will have the status of the patient's next of kin with 
352.4 	respect to visitation and making a health care decision. A designation must be included 
352.5 	in the patient's health record. With respect to making a health care decision, a health 
352.6 	care directive or appointment of a health care agent under chapter 145C prevails over a 
352.7 	designation made under this paragraph. The unrelated person may also be identified as 
352.8 	such by the patient or by the patient's family.

352.9 	Sec. 19. Minnesota Statutes 2006, section 145C.05, is amended to read:
352.10 	145C.05 SUGGESTED FORM; PROVISIONS THAT MAY BE INCLUDED.
352.11 		Subdivision 1.Content. A health care directive executed pursuant to this chapter 
352.12 	may, but need not, be in the form contained in section 145C.16. 
352.13 		Subd. 2.Provisions that may be included. (a) A health care directive may include 
352.14 	provisions consistent with this chapter, including, but not limited to:
352.15 	(1) the designation of one or more alternate health care agents to act if the named 
352.16 	health care agent is not reasonably available to serve;
352.17 	(2) directions to joint health care agents regarding the process or standards by which 
352.18 	the health care agents are to reach a health care decision for the principal, and a statement 
352.19 	whether joint health care agents may act independently of one another;
352.20 	(3) limitations, if any, on the right of the health care agent or any alternate health 
352.21 	care agents to receive, review, obtain copies of, and consent to the disclosure of the 
352.22 	principal's medical records or to visit the principal when the principal is a patient in a 
352.23 	health care facility;
352.24 	(4) limitations, if any, on the nomination of the health care agent as guardian for 
352.25 	purposes of sections 524.5-202, 524.5-211, 524.5-302, and 524.5-303; 
352.26 	(5) a document of gift for the purpose of making an anatomical gift, as set forth in 
352.27 	sections 525.921 to 525.9224, or an amendment to, revocation of, or refusal to make 
352.28 	an anatomical gift; 
352.29 	(6) a declaration regarding intrusive mental health treatment under section 253B.03, 
352.30 	subdivision 6d, or a statement that the health care agent is authorized to give consent for 
352.31 	the principal under section 253B.04, subdivision 1a; 
352.32 	(7) a funeral directive as provided in section 149A.80, subdivision 2; 
352.33 	(8) limitations, if any, to the effect of dissolution or annulment of marriage or 
352.34 	termination of domestic partnership on the appointment of a health care agent under 
352.35 	section 145C.09, subdivision 2; 
353.1 	(9) specific reasons why a principal wants a health care provider or an employee 
353.2 	of a health care provider attending the principal to be eligible to act as the principal's 
353.3 	health care agent;
353.4 	(10) health care instructions by a woman of child bearing age regarding how she 
353.5 	would like her pregnancy, if any, to affect health care decisions made on her behalf; and
353.6 	(11) health care instructions regarding artificially administered nutrition or hydration.
353.7 	(b) A health care directive may include a statement of the circumstances under 
353.8 	which the directive becomes effective other than upon the judgment of the principal's 
353.9 	attending physician in the following situations:
353.10 	(1) a principal who in good faith generally selects and depends upon spiritual means 
353.11 	or prayer for the treatment or care of disease or remedial care and does not have an 
353.12 	attending physician, may include a statement appointing an individual who may determine 
353.13 	the principal's decision-making capacity; and
353.14 	(2) a principal who in good faith does not generally select a physician or a health 
353.15 	care facility for the principal's health care needs may include a statement appointing an 
353.16 	individual who may determine the principal's decision-making capacity, provided that if 
353.17 	the need to determine the principal's capacity arises when the principal is receiving care 
353.18 	under the direction of an attending physician in a health care facility, the determination 
353.19 	must be made by an attending physician after consultation with the appointed individual.
353.20 	If a person appointed under clause (1) or (2) is not reasonably available and the 
353.21 	principal is receiving care under the direction of an attending physician in a health care 
353.22 	facility, an attending physician shall determine the principal's decision-making capacity.
353.23 	(c) A health care directive may authorize a health care agent to make health care 
353.24 	decisions for a principal even though the principal retains decision-making capacity.

353.25 	Sec. 20. Minnesota Statutes 2006, section 145C.07, is amended by adding a 
353.26 	subdivision to read:
353.27 		Subd. 5.Visitation. A health care agent may visit the principal when the 
353.28 	principal is a patient in a health care facility regardless of whether the principal retains 
353.29 	decision-making capacity, unless:
353.30 	(1) the principal has otherwise specified in the health care directive;
353.31 	(2) a principal who retains decision-making capacity indicates otherwise; or
353.32 	(3) a health care provider reasonably determines that the principal must be isolated 
353.33 	from all visitors or that the presence of the health care agent would endanger the health or 
353.34 	safety of the principal, other patients, or the facility in which the care is being provided.

354.1 	Sec. 21. Minnesota Statutes 2006, section 148.6445, subdivision 1, is amended to read:
354.2 		Subdivision 1.Initial licensure fee. The initial licensure fee for occupational 
354.3 	therapists is $180 $145. The initial licensure fee for occupational therapy assistants is 
354.4 	$100 $80. The commissioner shall prorate fees based on the number of quarters remaining 
354.5 	in the biennial licensure period.

354.6 	Sec. 22. Minnesota Statutes 2006, section 148.6445, subdivision 2, is amended to read:
354.7 		Subd. 2.Licensure renewal fee. The biennial licensure renewal fee for 
354.8 	occupational therapists is $180 $145. The biennial licensure renewal fee for occupational 
354.9 	therapy assistants is $100 $80.

354.10 	Sec. 23. [148.785] FEES.
354.11 	The fees charged by the board are fixed at the following rates:
354.12 	(1) application fee for physical therapists and physical therapist assistants, $100;
354.13 	(2) annual licensure for physical therapists and physical therapist assistants, $60;
354.14 	(3) licensure renewal late fee, $20;
354.15 	(4) temporary permit, $25;
354.16 	(5) duplicate license or registration, $20;
354.17 	(6) certification letter, $25;
354.18 	(7) education or training program approval, $100;
354.19 	(8) report creation and generation, $60 per hour billed in quarter-hour increments 
354.20 	with a quarter-hour minimum; and
354.21 	(9) examination administration:
354.22 	(i) half day, $50; and
354.23 	(ii) full day, $80.

354.24 	Sec. 24. [148.995] DEFINITIONS.
354.25 		Subdivision 1.Applicability. The definitions in this section apply to sections 
354.26 	148.995 to 148.997.
354.27 		Subd. 2.Certified doula. "Certified doula" means an individual who has received 
354.28 	a certification to perform doula services from the International Childbirth Education 
354.29 	Association, the Doulas of North America (DONA), the Association of Labor Assistants 
354.30 	and Childbirth Educators (ALACE), Birthworks, Childbirth and Postpartum Professional 
354.31 	Association (CAPPA), or Childbirth International.
354.32 		Subd. 3.Commissioner. "Commissioner" means the commissioner of health.
355.1 		Subd. 4.Doula services. "Doula services" means emotional and physical support 
355.2 	during pregnancy, labor, birth, and postpartum.

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

355.4 	Sec. 25. [148.996] REGISTRY.
355.5 		Subdivision 1.Establishment. The commissioner of health shall maintain a registry 
355.6 	of certified doulas who have met the requirements listed in subdivision 2.
355.7 		Subd. 2.Qualifications. The commissioner shall include on the registry any 
355.8 	individual who:
355.9 	(1) submits an application on a form provided by the commissioner. The form must 
355.10 	include the applicant's name, address, and contact information;
355.11 	(2) maintains a current certification from one of the organizations listed in section 
355.12 	146B.01, subdivision 2; and
355.13 	(3) pays the fees required under section 148.997.
355.14 		Subd. 3.Criminal background check. The commissioner shall conduct a 
355.15 	criminal background check by reviewing the Bureau of Criminal Apprehension's Web 
355.16 	site. If the review indicates that an applicant has been engaged in criminal behavior, 
355.17 	the commissioner shall indicate this on the registry and provide a link to the Bureau of 
355.18 	Criminal Apprehension's Web site.
355.19 		Subd. 4.Renewal. Inclusion on the registry maintained by the commissioner is 
355.20 	valid for three years. At the end of the three-year period, the certified doula may submit a 
355.21 	new application to remain on the doula registry by meeting the requirements described in 
355.22 	subdivision 2.
355.23 		Subd. 5.Public access. The commissioner shall provide a link to the registry 
355.24 	on the Department of Health's Web site.

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

355.26 	Sec. 26. [148.997] FEES.
355.27 		Subdivision 1.Fees. (a) The application fee is $130.
355.28 	(b) The criminal background check fee is $6.
355.29 		Subd. 2.Nonrefundable fees. The fees in this section are nonrefundable.

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

355.31 	Sec. 27. Minnesota Statutes 2006, section 148B.53, subdivision 3, is amended to read:
355.32 		Subd. 3.Fee. Nonrefundable fees are as follows:
356.1 	(1) initial license application fee for licensed professional counseling (LPC) - $250
356.2 	$150;
356.3 	(2) initial license fee for LPC - $250;
356.4 	(3) annual active license renewal fee for LPC - $200 $250 or equivalent;
356.5 	(3) (4) annual inactive license renewal fee for LPC - $100 $125;
356.6 	(5) initial license application fee for licensed professional clinical counseling 
356.7 	(LPCC) - $150;
356.8 	(6) initial license fee for LPCC - $250;
356.9 	(7) annual active license renewal fee for LPCC - $250 or equivalent;
356.10 	(8) annual inactive license renewal fee for LPCC - $125;
356.11 	(4) (9) license renewal late fee - $100 per month or portion thereof;
356.12 	(5) (10) copy of board order or stipulation - $10;
356.13 	(6) (11) certificate of good standing or license verification - $10 $25;
356.14 	(7) (12) duplicate certificate fee - $10 $25;
356.15 	(8) (13) professional firm renewal fee - $25;
356.16 	(9) (14) sponsor application for approval of a continuing education course - $60;
356.17 	(15) initial registration fee - $50; and
356.18 	(10) (16) annual registration renewal fee - $25; and
356.19 	(17) approved supervisor application processing fee - $30.

356.20 	Sec. 28. Minnesota Statutes 2006, section 149A.52, subdivision 3, is amended to read:
356.21 		Subd. 3.Application procedure; documentation; initial inspection. An applicant 
356.22 	for a license to operate a crematory shall submit to the commissioner a completed 
356.23 	application. A completed application includes:
356.24 	(1) a completed application form, as provided by the commissioner;
356.25 	(2) proof of business form and ownership; and
356.26 	(3) proof of liability insurance coverage or other financial documentation, as 
356.27 	determined by the commissioner, that demonstrates the applicant's ability to respond in 
356.28 	damages for liability arising from the ownership, maintenance, management, or operation 
356.29 	of a crematory.
356.30 	Upon receipt of the application and appropriate fee, the commissioner shall review 
356.31 	and verify all information. Upon completion of the verification process and resolution 
356.32 	of any deficiencies in the application information, the commissioner shall conduct an 
356.33 	initial inspection of the premises to be licensed. After the inspection and resolution of 
356.34 	any deficiencies found and any reinspections as may be necessary, the commissioner shall 
356.35 	make a determination, based on all the information available, to grant or deny licensure. If 
357.1 	the commissioner's determination is to grant the license, the applicant shall be notified and 
357.2 	the license shall issue and remain valid for a period prescribed on the license, but not to 
357.3 	exceed one calendar year from the date of issuance of the license. If the commissioner's 
357.4 	determination is to deny the license, the commissioner must notify the applicant, in 
357.5 	writing, of the denial and provide the specific reason for denial.

357.6 	Sec. 29. [149A.65] FEES.
357.7 		Subdivision 1.Generally. This section establishes the fees for registrations, 
357.8 	examinations, initial and renewal licenses, and late fees authorized under the provisions 
357.9 	of this chapter.
357.10 		Subd. 2.Mortuary science fees. Fees for mortuary science are:
357.11 	(1) $50 for the initial and renewal registration of a mortuary science intern;
357.12 	(2) $100 for the mortuary science examination;
357.13 	(3) $125 for issuance of initial and renewal mortuary science licenses;
357.14 	(4) $25 late fee charge for a license renewal; and
357.15 	(5) $200 for issuing a mortuary science license by endorsement.
357.16 		Subd. 3.Funeral directors. The license renewal fee for funeral directors is $125. 
357.17 	The late fee charge for a license renewal is $25.
357.18 		Subd. 4.Funeral establishments. The initial and renewal fee for funeral 
357.19 	establishments is $300. The late fee charge for a license renewal is $25.
357.20 		Subd. 5.Crematories. The initial and renewal fee for a crematory is $300. The 
357.21 	late fee charge for a license renewal is $25.

357.22 	Sec. 30. Minnesota Statutes 2006, section 149A.97, subdivision 7, is amended to read:
357.23 		Subd. 7.Reports to commissioner. Every funeral provider lawfully doing business 
357.24 	in Minnesota that accepts funds under subdivision 2 must make a complete annual report 
357.25 	to the commissioner. The reports may be on forms provided by the commissioner or 
357.26 	substantially similar forms containing, at least, identification and the state of each trust 
357.27 	account, including all transactions involving principal and accrued interest, and must be 
357.28 	filed by March 31 of the calendar year following the reporting year along with a filing 
357.29 	fee of $15 $25 for each report. Fees shall be paid to the commissioner of finance, state of 
357.30 	Minnesota, for deposit in the state government special revenue fund in the state treasury. 
357.31 	Reports must be signed by an authorized representative of the funeral provider and 
357.32 	notarized under oath. All reports to the commissioner shall be reviewed for account 
357.33 	inaccuracies or possible violations of this section. If the commissioner has a reasonable 
357.34 	belief to suspect that there are account irregularities or possible violations of this section, 
358.1 	the commissioner shall report that belief, in a timely manner, to the state auditor. The 
358.2 	commissioner shall also file an annual letter with the state auditor disclosing whether or 
358.3 	not any irregularities or possible violations were detected in review of the annual trust 
358.4 	fund reports filed by the funeral providers. This letter shall be filed with the state auditor 
358.5 	by May 31 of the calendar year following the reporting year.

358.6 	Sec. 31. Minnesota Statutes 2006, section 157.16, subdivision 1, is amended to read:
358.7 		Subdivision 1.License required annually. A license is required annually for every 
358.8 	person, firm, or corporation engaged in the business of conducting a food and beverage 
358.9 	service establishment, hotel, motel, lodging establishment, or resort. Any person wishing 
358.10 	to operate a place of business licensed in this section shall first make application, pay the 
358.11 	required fee specified in this section, and receive approval for operation, including plan 
358.12 	review approval. Seasonal and temporary food stands and special event food stands are 
358.13 	not required to submit plans. Nonprofit organizations operating a special event food 
358.14 	stand with multiple locations at an annual one-day event shall be issued only one license. 
358.15 	Application shall be made on forms provided by the commissioner and shall require 
358.16 	the applicant to state the full name and address of the owner of the building, structure, 
358.17 	or enclosure, the lessee and manager of the food and beverage service establishment, 
358.18 	hotel, motel, lodging establishment, or resort; the name under which the business is to 
358.19 	be conducted; and any other information as may be required by the commissioner to 
358.20 	complete the application for license.

358.21 	Sec. 32. INJUNCTIVE RELIEF REPORT.
 358.22 	The commissioner of health shall present to the 2008 legislature, by December 15, 
358.23 	2007, recommendations to fund the cost of bringing actions for injunctive relief under 
358.24 	Minnesota Statutes, section 144G.02, subdivision 2, paragraph (b).

358.25 	Sec. 33. HEARING AID DISPENSER FEES.
 358.26 	Fees relating to hearing aid dispensers, as provided in Minnesota Statutes, section 
358.27 	153A.17, may not be increased until after the Department of Health provides a report to 
358.28 	the legislature regarding the need and reasons for fee increases.

358.29 	Sec. 34.  REPEALER.
 358.30 	Minnesota Rules, part 4610.2800, is repealed.

359.1 	ARTICLE 10
359.2 	DEPARTMENT OF HEALTH

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

359.10 	Sec. 2. [144.291] MINNESOTA HEALTH RECORDS ACT.
359.11 		Subdivision 1.Short title. Sections 144.291 to 144.298 may be cited as the 
359.12 	Minnesota Health Records Act.
359.13 		Subd. 2.Definitions. For the purposes of sections 144.291 to 144.298, the following 
359.14 	terms have the meanings given.
359.15 	(a) Group purchaser. "Group purchaser" has the meaning given in section 62J.03, 
359.16 	subdivision 6.
359.17 	(b) Health information exchange. "Health information exchange" means a legal 
359.18 	arrangement between health care providers and group purchasers to enable and oversee the 
359.19 	business and legal issues involved in the electronic exchange of health records between 
359.20 	the entities for the delivery of patient care.
359.21 	(c) Health record. "Health record" means any information, whether oral or recorded 
359.22 	in any form or medium, that relates to the past, present, or future physical or mental health 
359.23 	or condition of a patient; the provision of health care to a patient; or the past, present, or 
359.24 	future payment for the provision of health care to a patient.
359.25 	(d) Identifying information. "Identifying information" means the patient's name, 
359.26 	address, date of birth, gender, parent's or guardian's name regardless of the age of the 
359.27 	patient, and other nonclinical data which can be used to uniquely identify a patient.
359.28 	(e) Individually identifiable form. "Individually identifiable form" means a form in 
359.29 	which the patient is or can be identified as the subject of the health records.
359.30 	(f) Medical emergency. "Medical emergency" means medically necessary care 
359.31 	which is immediately needed to preserve life, prevent serious impairment to bodily 
359.32 	functions, organs, or parts, or prevent placing the physical or mental health of the patient 
359.33 	in serious jeopardy.
360.1 	(g) Patient. "Patient" means a natural person who has received health care services 
360.2 	from a provider for treatment or examination of a medical, psychiatric, or mental 
360.3 	condition, the surviving spouse and parents of a deceased patient, or a person the patient 
360.4 	appoints in writing as a representative, including a health care agent acting according to 
360.5 	chapter 145C, unless the authority of the agent has been limited by the principal in the 
360.6 	principal's health care directive. Except for minors who have received health care services 
360.7 	under sections 144.341 to 144.347, in the case of a minor, patient includes a parent or 
360.8 	guardian, or a person acting as a parent or guardian in the absence of a parent or guardian.
360.9 	(h) Provider. "Provider" means: 
360.10 	(1) any person who furnishes health care services and is regulated to furnish the 
360.11 	services under chapter 147, 147A, 147B, 147C, 147D, 148, 148B, 148C, 148D, 150A, 
360.12 	151, 153, or 153A; 
360.13 	(2) a home care provider licensed under section 144A.46; 
360.14 	(3) a health care facility licensed under this chapter or chapter 144A; 
360.15 	(4) a physician assistant registered under chapter 147A; and 
360.16 	(5) an unlicensed mental health practitioner regulated under sections 148B.60 to 
360.17 	148B.71.
360.18 	(i) Record locator service. "Record locator service" means an electronic index of 
360.19 	patient identifying information that directs providers in a health information exchange to 
360.20 	the location of patient health records held by providers and group purchasers.
360.21 	(j) Related health care entity. "Related health care entity" means an affiliate, as 
360.22 	defined in section 144.6521, subdivision 3, paragraph (b), of the provider releasing the 
360.23 	health records.

360.24 	Sec. 3. [144.292] PATIENT RIGHTS.
360.25 		Subdivision 1.Scope. Patients have the rights specified in this section regarding the 
360.26 	treatment the patient receives and the patient's health record.
360.27 		Subd. 2.Patient access. Upon request, a provider shall supply to a patient complete 
360.28 	and current information possessed by that provider concerning any diagnosis, treatment, 
360.29 	and prognosis of the patient in terms and language the patient can reasonably be expected 
360.30 	to understand.
360.31 		Subd. 3.Additional patient rights. A patient's right specified in this section and 
360.32 	sections 144.293 to 144.298 are in addition to the rights specified in sections 144.651 and 
360.33 	144.652 and any other provision of law relating to the access of a patient to the patient's 
360.34 	health records.
361.1 		Subd. 4.Notice of rights; information on release. A provider shall provide to 
361.2 	patients, in a clear and conspicuous manner, a written notice concerning practices and 
361.3 	rights with respect to access to health records. The notice must include an explanation of:
361.4 	(1) disclosures of health records that may be made without the written consent of the 
361.5 	patient, including the type of records and to whom the records may be disclosed; and
361.6 	(2) the right of the patient to have access to and obtain copies of the patient's health 
361.7 	records and other information about the patient that is maintained by the provider.
361.8 	The notice requirements of this subdivision are satisfied if the notice is included with 
361.9 	the notice and copy of the patient and resident bill of rights under section 144.652 or if it 
361.10 	is displayed prominently in the provider's place of business. The commissioner of health 
361.11 	shall develop the notice required in this subdivision and publish it in the State Register.
361.12 		Subd. 5.Copies of health records to patients. Except as provided in section 
361.13 	144.296, upon a patient's written request, a provider, at a reasonable cost to the patient, 
361.14 	shall promptly furnish to the patient:
361.15 	(1) copies of the patient's health record, including but not limited to laboratory 
361.16 	reports, x-rays, prescriptions, and other technical information used in assessing the 
361.17 	patient's health conditions; or
361.18 	(2) the pertinent portion of the record relating to a condition specified by the patient.
361.19 	With the consent of the patient, the provider may instead furnish only a summary 
361.20 	of the record. The provider may exclude from the health record written speculations 
361.21 	about the patient's health condition, except that all information necessary for the patient's 
361.22 	informed consent must be provided.
361.23 		Subd. 6.Cost. (a) When a patient requests a copy of the patient's record for 
361.24 	purposes of reviewing current medical care, the provider must not charge a fee.
361.25 	(b) When a provider or its representative makes copies of patient records upon a 
361.26 	patient's request under this section, the provider or its representative may charge the 
361.27 	patient or the patient's representative no more than 75 cents per page, plus $10 for time 
361.28 	spent retrieving and copying the records, unless other law or a rule or contract provide for 
361.29 	a lower maximum charge. This limitation does not apply to x-rays. The provider may 
361.30 	charge a patient no more than the actual cost of reproducing x-rays, plus no more than 
361.31 	$10 for the time spent retrieving and copying the x-rays.
361.32 	(c) The respective maximum charges of 75 cents per page and $10 for time provided 
361.33 	in this subdivision are in effect for calendar year 1992 and may be adjusted annually each 
361.34 	calendar year as provided in this subdivision. The permissible maximum charges shall 
361.35 	change each year by an amount that reflects the change, as compared to the previous year, 
362.1 	in the Consumer Price Index for all Urban Consumers, Minneapolis-St. Paul (CPI-U), 
362.2 	published by the Department of Labor.
362.3 	(d) A provider or its representative must not charge a fee to provide copies of records 
362.4 	requested by a patient or the patient's authorized representative if the request for copies 
362.5 	of records is for purposes of appealing a denial of Social Security disability income or 
362.6 	Social Security disability benefits under title II or title XVI of the Social Security Act. For 
362.7 	the purpose of further appeals, a patient may receive no more than two medical record 
362.8 	updates without charge, but only for medical record information previously not provided. 
362.9 	For purposes of this paragraph, a patient's authorized representative does not include units 
362.10 	of state government engaged in the adjudication of Social Security disability claims.
362.11 		Subd. 7.Withholding health records from patient. (a) If a provider, as defined in 
362.12 	section 144.291, subdivision 2, paragraph (h), clause (1), reasonably determines that the 
362.13 	information is detrimental to the physical or mental health of the patient, or is likely to 
362.14 	cause the patient to inflict self harm, or to harm another, the provider may withhold the 
362.15 	information from the patient and may supply the information to an appropriate third party 
362.16 	or to another provider, as defined in section 144.291, subdivision 2, paragraph (h), clause 
362.17 	(1). The other provider or third party may release the information to the patient.
362.18 	(b) A provider, as defined in section 144.291, subdivision 2, paragraph (h), clause 
362.19 	(3), shall release information upon written request unless, prior to the request, a provider, 
362.20 	as defined in section 144.291, subdivision 2, paragraph (h), clause (1), has designated and 
362.21 	described a specific basis for withholding the information as authorized by paragraph (a).
362.22 		Subd. 8.Form. By January 1, 2008, the Department of Health must develop a form 
362.23 	that may be used by a patient to request access to health records under this section. A form 
362.24 	developed by the commissioner must be accepted by a provider as a legally enforceable 
362.25 	request under this section.

362.26 	Sec. 4. [144.293] RELEASE OR DISCLOSURE OF HEALTH RECORDS.
362.27 		Subdivision 1.Release or disclosure of health records. Health records can be 
362.28 	released or disclosed as specified in subdivisions 2 to 9 and sections 144.294 and 144.295.
362.29 		Subd. 2.Patient consent to release of records. A provider, or a person who 
362.30 	receives health records from a provider, may not release a patient's health records to a 
362.31 	person without:
362.32 	(1) a signed and dated consent from the patient or the patient's legally authorized 
362.33 	representative authorizing the release; 
362.34 	(2) specific authorization in law; or
363.1 	(3) a representation from a provider that holds a signed and dated consent from the 
363.2 	patient authorizing the release.
363.3 		Subd. 3.Release from one provider to another. A patient's health record, 
363.4 	including, but not limited to, laboratory reports, x-rays, prescriptions, and other technical 
363.5 	information used in assessing the patient's condition, or the pertinent portion of the record 
363.6 	relating to a specific condition, or a summary of the record, shall promptly be furnished to 
363.7 	another provider upon the written request of the patient. The written request shall specify 
363.8 	the name of the provider to whom the health record is to be furnished. The provider who 
363.9 	furnishes the health record or summary may retain a copy of the materials furnished. The 
363.10 	patient shall be responsible for the reasonable costs of furnishing the information.
363.11 		Subd. 4.Duration of consent. Except as provided in this section, a consent is 
363.12 	valid for one year or for a lesser period specified in the consent or for a different period 
363.13 	provided by law.
363.14 		Subd. 5.Exceptions to consent requirement. This section does not prohibit the 
363.15 	release of health records:
363.16 	(1) for a medical emergency when the provider is unable to obtain the patient's 
363.17 	consent due to the patient's condition or the nature of the medical emergency;
363.18 	(2) to other providers within related health care entities when necessary for the 
363.19 	current treatment of the patient; or
363.20 	(3) to a health care facility licensed by this chapter, chapter 144A, or to the same 
363.21 	types of health care facilities licensed by this chapter and chapter 144A that are licensed 
363.22 	in another state when a patient:
363.23 	(i) is returning to the health care facility and unable to provide consent; or
363.24 	(ii) who resides in the health care facility, has services provided by an outside 
363.25 	resource under Code of Federal Regulations, title 42, section 483.75(h), and is unable 
363.26 	to provide consent.
363.27 		Subd. 6.Consent does not expire. Notwithstanding subdivision 4, if a patient 
363.28 	explicitly gives informed consent to the release of health records for the purposes and 
363.29 	restrictions in clauses (1) and (2), the consent does not expire after one year for:
363.30 	(1) the release of health records to a provider who is being advised or consulted with 
363.31 	in connection with the releasing provider's current treatment of the patient;
363.32 	(2) the release of health records to an accident and health insurer, health service plan 
363.33 	corporation, health maintenance organization, or third-party administrator for purposes of 
363.34 	payment of claims, fraud investigation, or quality of care review and studies, provided that:
363.35 	(i) the use or release of the records complies with sections 72A.49 to 72A.505;
364.1 	(ii) further use or release of the records in individually identifiable form to a person 
364.2 	other than the patient without the patient's consent is prohibited; and
364.3 	(iii) the recipient establishes adequate safeguards to protect the records from 
364.4 	unauthorized disclosure, including a procedure for removal or destruction of information 
364.5 	that identifies the patient.
364.6 		Subd. 7.Exception to consent. Subdivision 2 does not apply to the release of health 
364.7 	records to the commissioner of health or the Health Data Institute under chapter 62J, 
364.8 	provided that the commissioner encrypts the patient identifier upon receipt of the data.
364.9 		Subd. 8.Record locator service. (a) A provider or group purchaser may release 
364.10 	patient identifying information and information about the location of the patient's health 
364.11 	records to a record locator service without consent from the patient, unless the patient 
364.12 	has elected to be excluded from the service under paragraph (d). The Department of 
364.13 	Health may not access the record locator service or receive data from the record locator 
364.14 	service. Only a provider may have access to patient identifying information in a record 
364.15 	locator service. Except in the case of a medical emergency, a provider participating in a 
364.16 	health information exchange using a record locator service does not have access to patient 
364.17 	identifying information and information about the location of the patient's health records 
364.18 	unless the patient specifically consents to the access. A consent does not expire but may 
364.19 	be revoked by the patient at any time by providing written notice of the revocation to the 
364.20 	provider. 
364.21 	(b) A health information exchange maintaining a record locator service must 
364.22 	maintain an audit log of providers accessing information in a record locator service that 
364.23 	at least contains information on: 
364.24 	(1) the identity of the provider accessing the information; 
364.25 	(2) the identity of the patient whose information was accessed by the provider; and 
364.26 	(3) the date the information was accessed. 
364.27 	(c) No group purchaser may in any way require a provider to participate in a record 
364.28 	locator service as a condition of payment or participation.
364.29 	(d) A provider or an entity operating a record locator service must provide 
364.30 	a mechanism under which patients may exclude their identifying information and 
364.31 	information about the location of their health records from a record locator service. At 
364.32 	a minimum, a consent form that permits a provider to access a record locator service 
364.33 	must include a conspicuous check-box option that allows a patient to exclude all of the 
364.34 	patient's information from the record locator service. A provider participating in a health 
364.35 	information exchange with a record locator service who receives a patient's request to 
364.36 	exclude all of the patient's information from the record locator service or to have a specific 
365.1 	provider contact excluded from the record locator service is responsible for removing that 
365.2 	information from the record locator service.
365.3 		Subd. 9.Documentation of release. (a) In cases where a provider releases health 
365.4 	records without patient consent as authorized by law, the release must be documented in 
365.5 	the patient's health record. In the case of a release under section 144.294, subdivision 2, the 
365.6 	documentation must include the date and circumstances under which the release was made, 
365.7 	the person or agency to whom the release was made, and the records that were released.
365.8 	(b) When a health record is released using a representation from a provider that 
365.9 	holds a consent from the patient, the releasing provider shall document: 
365.10 	(1) the provider requesting the health records; 
365.11 	(2) the identity of the patient;
365.12 	(3) the health records requested; and 
365.13 	(4) the date the health records were requested.
365.14 		Subd. 10.Warranties regarding consents, requests, and disclosures. (a) When 
365.15 	requesting health records using consent, a person warrants that the consent:
365.16 	(1) contains no information known to the person to be false; and
365.17 	(2) accurately states the patient's desire to have health records disclosed or that there 
365.18 	is specific authorization in law.
365.19 	(b) When requesting health records using consent, a provider warrants that the 
365.20 	request:
365.21 	(1) contains no information known to the provider to be false;
365.22 	(2) accurately states the patient's desire to have health records disclosed or that 
365.23 	there is specific authorization in law; and
365.24 	(3) does not exceed any limits imposed by the patient in the consent.
365.25 	(c) When disclosing health records, a person releasing health records warrants that 
365.26 	the person:
365.27 	(1) has complied with the requirements of this section regarding disclosure of 
365.28 	health records;
365.29 	(2) knows of no information related to the request that is false; and
365.30 	(3) has complied with the limits set by the patient in the consent.

365.31 	Sec. 5. [144.294] RECORDS RELATING TO MENTAL HEALTH.
365.32 		Subdivision 1.Provider inquiry. Upon the written request of a spouse, parent, 
365.33 	child, or sibling of a patient being evaluated for or diagnosed with mental illness, a 
365.34 	provider shall inquire of a patient whether the patient wishes to authorize a specific 
365.35 	individual to receive information regarding the patient's current and proposed course of 
366.1 	treatment. If the patient so authorizes, the provider shall communicate to the designated 
366.2 	individual the patient's current and proposed course of treatment. Section 144.293, 
366.3 	subdivisions 2 and 4, apply to consents given under this subdivision.
366.4 		Subd. 2.Disclosure to law enforcement agency. Notwithstanding section 144.293, 
366.5 	subdivisions 2 and 4, a provider must disclose health records relating to a patient's mental 
366.6 	health to a law enforcement agency if the law enforcement agency provides the name 
366.7 	of the patient and communicates that the:
366.8 	(1) patient is currently involved in an emergency interaction with the law 
366.9 	enforcement agency; and
366.10 	(2) disclosure of the records is necessary to protect the health or safety of the patient 
366.11 	or of another person. 
366.12 	The scope of disclosure under this subdivision is limited to the minimum necessary 
366.13 	for law enforcement to respond to the emergency. A law enforcement agency that obtains 
366.14 	health records under this subdivision shall maintain a record of the requestor, the provider 
366.15 	of the information, and the patient's name. Health records obtained by a law enforcement 
366.16 	agency under this subdivision are private data on individuals as defined in section 13.02, 
366.17 	subdivision 12, and must not be used by law enforcement for any other purpose.
366.18 		Subd. 3.Records release for family and caretaker; mental health care. (a) 
366.19 	Notwithstanding section 144.293, a provider providing mental health care and treatment 
366.20 	may disclose health record information described in paragraph (b) about a patient to a 
366.21 	family member of the patient or other person who requests the information if:
366.22 	(1) the request for information is in writing;
366.23 	(2) the family member or other person lives with, provides care for, or is directly 
366.24 	involved in monitoring the treatment of the patient;
366.25 	(3) the involvement under clause (2) is verified by the patient's mental health care 
366.26 	provider, the patient's attending physician, or a person other than the person requesting the 
366.27 	information, and is documented in the patient's medical record;
366.28 	(4) before the disclosure, the patient is informed in writing of the request, the name 
366.29 	of the person requesting the information, the reason for the request, and the specific 
366.30 	information being requested;
366.31 	(5) the patient agrees to the disclosure, does not object to the disclosure, or is 
366.32 	unable to consent or object, and the patient's decision or inability to make a decision is 
366.33 	documented in the patient's medical record; and
366.34 	(6) the disclosure is necessary to assist in the provision of care or monitoring of the 
366.35 	patient's treatment. 
367.1 	(b) The information disclosed under this paragraph is limited to diagnosis, admission 
367.2 	to or discharge from treatment, the name and dosage of the medications prescribed, side 
367.3 	effects of the medication, consequences of failure of the patient to take the prescribed 
367.4 	medication, and a summary of the discharge plan. 
367.5 	(c) If a provider reasonably determines that providing information under this 
367.6 	subdivision would be detrimental to the physical or mental health of the patient or is 
367.7 	likely to cause the patient to inflict self harm or to harm another, the provider must not 
367.8 	disclose the information. 
367.9 	(d) This subdivision does not apply to disclosures for a medical emergency or 
367.10 	to family members as authorized or required under subdivision 1 or section 144.293, 
367.11 	subdivision 5, clause (1).

367.12 	Sec. 6. [144.295] DISCLOSURE OF HEALTH RECORDS FOR EXTERNAL 
367.13 	RESEARCH.
367.14 		Subdivision 1.Methods of release. (a) Notwithstanding section 144.293, 
367.15 	subdivisions 2 and 4, health records may be released to an external researcher solely for 
367.16 	purposes of medical or scientific research only as follows:
367.17 	(1) health records generated before January 1, 1997, may be released if the patient 
367.18 	has not objected or does not elect to object after that date;
367.19 	(2) for health records generated on or after January 1, 1997, the provider must:
367.20 	(i) disclose in writing to patients currently being treated by the provider that health 
367.21 	records, regardless of when generated, may be released and that the patient may object, in 
367.22 	which case the records will not be released; and
367.23 	(ii) use reasonable efforts to obtain the patient's written general authorization that 
367.24 	describes the release of records in item (i), which does not expire but may be revoked or 
367.25 	limited in writing at any time by the patient or the patient's authorized representative; 
367.26 	(3) the provider must advise the patient of the rights specified in clause (4); and
367.27 	(4) the provider must, at the request of the patient, provide information on how the 
367.28 	patient may contact an external researcher to whom the health record was released and 
367.29 	the date it was released.
367.30 	(b) Authorization may be established if an authorization is mailed at least two 
367.31 	times to the patient's last known address with a postage prepaid return envelope and a 
367.32 	conspicuous notice that the patient's medical records may be released if the patient does 
367.33 	not object, and at least 60 days have expired since the second notice was sent.
367.34 		Subd. 2.Duties of researcher. In making a release for research purposes, the 
367.35 	provider shall make a reasonable effort to determine that:
368.1 	(1) the use or disclosure does not violate any limitations under which the record 
368.2 	was collected;
368.3 	(2) the use or disclosure in individually identifiable form is necessary to accomplish 
368.4 	the research or statistical purpose for which the use or disclosure is to be made;
368.5 	(3) the recipient has established and maintains adequate safeguards to protect the 
368.6 	records from unauthorized disclosure, including a procedure for removal or destruction of 
368.7 	information that identifies the patient; and
368.8 	(4) further use or release of the records in individually identifiable form to a person 
368.9 	other than the patient without the patient's consent is prohibited.

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

368.15 	Sec. 8. [144.297] INDEPENDENT MEDICAL EXAMINATION.
368.16 	Sections 144.291 to 144.298 apply to the subject and provider of an independent 
368.17 	medical examination requested by or paid for by a third party. Notwithstanding section 
368.18 	144.293, a provider may release health records created as part of an independent medical 
368.19 	examination to the third party who requested or paid for the examination.

368.20 	Sec. 9. [144.298] PENALTIES.
368.21 		Subdivision 1.Licensing action. A violation of sections 144.291 to 144.298 may 
368.22 	be grounds for disciplinary action against a provider by the appropriate licensing board 
368.23 	or agency.
368.24 		Subd. 2.Liability of provider or other person. A person who does any of the 
368.25 	following is liable to the patient for compensatory damages caused by an unauthorized 
368.26 	release, plus costs and reasonable attorney fees:
368.27 	(1) negligently or intentionally requests or releases a health record in violation 
368.28 	of sections 144.291 to 144.297;
368.29 	(2) forges a signature on a consent form or materially alters the consent form of 
368.30 	another person without the person's consent; or
368.31 	(3) obtains a consent form or the health records of another person under false 
368.32 	pretenses.
369.1 		Subd. 3.Liability for record locator service. A patient is entitled to receive 
369.2 	compensatory damages plus costs and reasonable attorney fees if a health information 
369.3 	exchange maintaining a record locator service, or an entity maintaining a record locator 
369.4 	service for a health information exchange, negligently or intentionally violates the 
369.5 	provisions of section 144.293, subdivision 8.

369.6 	Sec. 10. Minnesota Statutes 2006, section 144.3345, is amended to read:
369.7 	144.3345 INTERCONNECTED ELECTRONIC HEALTH RECORD 
369.8 	GRANTS.
369.9 		Subdivision 1.Definitions. The following definitions are used for the purposes 
369.10 	of this section.
369.11 	(a) "Eligible community e-health collaborative" means an existing or newly 
369.12 	established collaborative to support the adoption and use of interoperable electronic 
369.13 	health records. A collaborative must consist of at least three two or more eligible health 
369.14 	care entities in at least two of the categories listed in paragraph (b) and have a focus on 
369.15 	interconnecting the members of the collaborative for secure and interoperable exchange of 
369.16 	health care information.
369.17 	(b) "Eligible health care entity" means one of the following:
369.18 	(1) community clinics, as defined under section 145.9268; 
369.19 	(2) hospitals eligible for rural hospital capital improvement grants, as defined 
369.20 	in section 144.148;
369.21 	(3) physician clinics located in a community with a population of less than 50,000 
369.22 	according to United States Census Bureau statistics and outside the seven-county 
369.23 	metropolitan area; 
369.24 	(4) nursing facilities licensed under sections 144A.01 to 144A.27; 
369.25 	(5) community health boards or boards of health as established under chapter 145A; 
369.26 	(6) nonprofit entities with a purpose to provide health information exchange 
369.27 	coordination governed by a representative, multi-stakeholder board of directors; and
369.28 	(7) other providers of health or health care services approved by the commissioner 
369.29 	for which interoperable electronic health record capability would improve quality of 
369.30 	care, patient safety, or community health.
369.31 		Subd. 2.Grants authorized. The commissioner of health shall award grants to:
369.32 	(a) eligible community e-health collaborative projects to improve the implementation 
369.33 	and use of interoperable electronic health records including but not limited to the 
369.34 	following projects:
370.1 	(1) collaborative efforts to host and support fully functional interoperable electronic 
370.2 	health records in multiple care settings; 
370.3 	(2) electronic medication history and electronic patient registration medical history
370.4 	information; 
370.5 	(3) electronic personal health records for persons with chronic diseases and for 
370.6 	prevention services; 
370.7 	(4) rural and underserved community models for electronic prescribing; and
370.8 	(5) enabling modernize local public health information systems to rapidly and 
370.9 	electronically exchange information needed to participate in community e-health 
370.10 	collaboratives or for public health emergency preparedness and response.; and
370.11 	(6) implement regional or community-based health information exchange 
370.12 	organizations;
370.13 	(b) community clinics, as defined under section 145.9268, to implement and use 
370.14 	interoperable electronic health records, including but not limited to the following projects:
370.15 	(1) efforts to plan for and implement fully functional, standards-based interoperable 
370.16 	electronic health records; and
370.17 	(2) purchases and implementation of computer hardware, software, and technology 
370.18 	to fully implement interoperable electronic health records;
370.19 	(c) regional or community-based health information exchange organizations to 
370.20 	connect and facilitate the exchange of health information between eligible health care 
370.21 	entities, including but not limited to the development, testing, and implementation of:
370.22 	(1) data exchange standards, including data, vocabulary, and messaging standards, 
370.23 	for the exchange of health information, provided that such standards are consistent with 
370.24 	state and national standards;
370.25 	(2) security standards necessary to ensure the confidentiality and integrity of health 
370.26 	records;
370.27 	(3) computer interfaces and mechanisms for standardizing health information 
370.28 	exchanged between eligible health care entities;
370.29 	(4) a record locator service for identifying the location of patient health records; or
370.30 	(5) interfaces and mechanisms for implementing patient consent requirements; and
370.31 	(d) community health boards and boards of health as established under chapter 
370.32 	145A to modernize local public health information systems to be standards-based and 
370.33 	interoperable with other electronic health records and information systems, or for 
370.34 	enhanced public health emergency preparedness and response.
370.35 	Grant funds may not be used for construction of health care or other buildings or 
370.36 	facilities.
371.1 		Subd. 3.Allocation of grants. (a) To receive a grant under this section, an eligible 
371.2 	community e-health collaborative, community clinic, regional or community-based health 
371.3 	information exchange, or community health boards and boards of health must submit an 
371.4 	application to the commissioner of health by the deadline established by the commissioner. 
371.5 	A grant may be awarded upon the signing of a grant contract. In awarding grants, the 
371.6 	commissioner shall give preference to projects benefiting providers located in rural and 
371.7 	underserved areas of Minnesota which the commissioner has determined have an unmet 
371.8 	need for the development and funding of electronic health records. Applicants may apply 
371.9 	for and the commissioner may award grants for one-year, two-year, or three-year periods.
371.10 	(b) An application must be on a form and contain information as specified by the 
371.11 	commissioner but at a minimum must contain:
371.12 	(1) a description of the purpose or project for which grant funds will be used; 
371.13 	(2) a description of the problem or problems the grant funds will be used to address, 
371.14 	including an assessment of the likelihood of the project occurring absent grant funding; 
371.15 	(3) a description of achievable objectives, a workplan, budget, budget narrative, a 
371.16 	project communications plan, a timeline for implementation and completion of processes 
371.17 	or projects enabled by the grant, and an assessment of privacy and security issues and a 
371.18 	proposed approach to address these issues;
371.19 	(4) a description of the health care entities and other groups participating in the 
371.20 	project, including identification of the lead entity responsible for applying for and 
371.21 	receiving grant funds; 
371.22 	(5) a plan for how patients and consumers will be involved in development of 
371.23 	policies and procedures related to the access to and interchange of information; 
371.24 	(6) evidence of consensus and commitment among the health care entities and others 
371.25 	who developed the proposal and are responsible for its implementation; and
371.26 	(7) a plan for documenting and evaluating results of the grant. ; and
371.27 	(8) a plan for use of data exchange standards, including data and vocabulary.
371.28 	(c) The commissioner shall review each application to determine whether the 
371.29 	application is complete and whether the applicant and the project are eligible for a 
371.30 	grant. In evaluating applications, the commissioner shall take into consideration factors, 
371.31 	including but not limited to, the following:
371.32 	(1) the degree to which the proposal interconnects the various providers of care with 
371.33 	other health care entities in the applicant's geographic community; 
371.34 	(2) the degree to which the project provides for the interoperability of electronic 
371.35 	health records or related health information technology between the members of the 
372.1 	collaborative, and presence and scope of a description of how the project intends to 
372.2 	interconnect with other providers not part of the project into the future;
372.3 	(3) the degree to which the project addresses current unmet needs pertaining 
372.4 	to interoperable electronic health records in a geographic area of Minnesota and the 
372.5 	likelihood that the needs would not be met absent grant funds; 
372.6 	(4) the applicant's thoroughness and clarity in describing the project, how the project 
372.7 	will improve patient safety, quality of care, and consumer empowerment, and the role of 
372.8 	the various collaborative members;
372.9 	(5) the recommendations of the Health Information and Technology Infrastructure 
372.10 	Advisory Committee; and
372.11 	(6) other factors that the commissioner deems relevant.
372.12 	(d) Grant funds shall be awarded on a three-to-one match basis. Applicants shall 
372.13 	be required to provide $1 in the form of cash or in-kind staff or services for each $3 
372.14 	provided under the grant program.
372.15 	(e) Grants shall not exceed $900,000 per grant. The commissioner has discretion 
372.16 	over the size and number of grants awarded.
372.17 		Subd. 4.Evaluation and report. The commissioner of health shall evaluate the 
372.18 	overall effectiveness of the grant program. The commissioner shall collect progress 
372.19 	and expenditure reports to evaluate the grant program from the eligible community 
372.20 	collaboratives receiving grants.

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

372.30 	Sec. 12. [145.9269] FEDERALLY QUALIFIED HEALTH CENTERS.
372.31 		Subdivision 1.Definitions. For purposes of this section, "federally qualified health 
372.32 	center" means an entity that is receiving a grant under United States Code, title 42, 
372.33 	section 254b, or, based on the recommendation of the Health Resources and Services 
373.1 	Administration within the Public Health Service, is determined by the secretary to meet 
373.2 	the requirements for receiving such a grant.
373.3 		Subd. 2.Allocation of subsidies. The commissioner of health shall distribute 
373.4 	subsidies to federally qualified health centers operating in Minnesota to continue, expand, 
373.5 	and improve federally qualified health center services to low-income populations. The 
373.6 	commissioner shall distribute the funds appropriated under this section to federally 
373.7 	qualified health centers operating in Minnesota as of January 1, 2007. The amount of 
373.8 	each subsidy shall be in proportion to each federally qualified health center's amount of 
373.9 	discounts granted to patients during calendar year 2006 as reported on the federal Uniform 
373.10 	Data System report in conformance with the Bureau of Primary Health Care Program 
373.11 	Expectations Policy Information Notice 98-23, except that each eligible federally qualified 
373.12 	health center shall receive at least two percent but no more than 30 percent of the total 
373.13 	amount of money available under this section.

373.14 	Sec. 13. HEALTH PROMOTION PROGRAM.
 373.15 	The commissioner of health, in consultation with the State Community Health 
373.16 	Services Advisory Committee established in Minnesota Statutes, section 145A.10, 
373.17 	subdivision 10, shall develop a plan to fund and implement an ongoing comprehensive 
373.18 	health promotion program that can effect change more effectively and at lower cost at 
373.19 	a community level rather than through individual counseling and change promotion. 
373.20 	The program shall use proven public health strategies to promote healthy lifestyles and 
373.21 	behaviors in order to establish a sustainable, long-term approach to reducing preventable 
373.22 	disability, chronic health conditions, and disease. The focus shall be on community 
373.23 	based initiatives that address childhood and adult obesity, tobacco and substance abuse, 
373.24 	improved activity levels among senior citizens, and other lifestyle issues that impact 
373.25 	health and healthcare costs. Because of its population health focus, funding shall be 
373.26 	related to the size of the population to be served. The plan shall be completed by October 
373.27 	1, 2007, and shared with the Legislative Health Care Access Commission.

373.28 	Sec. 14. CERVICAL CANCER PREVENTION AND HUMAN PAPILLOMA 
373.29 	VIRUS VACCINE STUDY.
 373.30 	The commissioner of health shall reconvene the cervical cancer elimination study 
373.31 	required under Laws 2005, First Special Session chapter 4, article 6, section 52, to conduct 
373.32 	a study, in collaboration with the Minnesota Immunization Practices Advisory Committee, 
373.33 	on the human papilloma virus vaccine, including, but not limited to, the following: 
373.34 	(1) the risks and benefits of the human papilloma virus vaccine;
374.1 	(2) the availability and effectiveness of the vaccine;
374.2 	(3) the extent to which health plan companies cover the cost of this vaccination; and
374.3 	(4) ways to cover the cost of vaccination for persons without coverage.
374.4 	The commissioner shall submit a report to the legislature by February 1, 2008, on 
374.5 	the findings of the study and recommendations as to whether the human papilloma virus 
374.6 	vaccine should be made mandatory statewide.

374.7 	Sec. 15. REVISOR'S INSTRUCTION.
 374.8 	In Minnesota Statutes and Minnesota Rules, the revisor shall change the references 
374.9 	in column A with the references in column B.

374.10	Column A
	Column B
	
374.11	section 144.335
	sections 144.291 to 144.298
	
374.12	section 144.335, subdivision 1
	section 144.291, subdivision 2
	
374.13
374.14	section 144.335, subdivision 1, paragraph 
(b)
	section 144.291, subdivision 2, paragraph 
(h)
	
374.15
374.16	section 144.335, subdivision 2, paragraphs 
(a) and (b)
	section 144.292, subdivisions 2 and 5
	
374.17	section 144.335, subdivision 2
	section 144.292
	
374.18	section 144.335, subdivision 3a
	section 144.294, subdivision 2
	
374.19
374.20	section 144.335, subdivision 3a, paragraph 
(d)
	section 144.295
	
374.21
374.22	section 144.335, subdivision 3a, paragraph 
(f)
	section 144.294
	
374.23	section 144.335, subdivision 3b
	section 144.293, subdivision 7

374.24 	Sec. 16.  REPEALER.
 374.25 	Minnesota Statutes 2006, section 144.335, and Laws 2006, chapter 249, section 
374.26 	6, are repealed.

374.27 	ARTICLE 11
374.28 	MISCELLANEOUS POLICY

374.29 	Section 1. Minnesota Statutes 2006, section 13.381, is amended by adding a 
374.30 	subdivision to read:
374.31 		Subd. 16a.Prescription electronic reporting system. Access to data in the 
374.32 	prescription electronic reporting system is governed by section 152.126.

374.33 	Sec. 2. Minnesota Statutes 2006, section 148.235, is amended by adding a subdivision 
374.34 	to read:
375.1 		Subd. 11.Dispensing by protocol. A registered nurse in a family planning agency 
375.2 	as defined in Minnesota Rules, part 9505.0280, subpart 3, may dispense oral contraceptives 
375.3 	prescribed by a licensed practitioner as defined in section 151.01, subdivision 23, pursuant 
375.4 	to a dispensing protocol established by the agency's medical director or under the direction 
375.5 	of a physician. The dispensing protocol must address the requirements of sections 151.01, 
375.6 	subdivision 30, and 151.212, subdivision 1.

375.7 	Sec. 3. Minnesota Statutes 2006, section 151.19, subdivision 2, is amended to read:
375.8 		Subd. 2.Nonresident pharmacies. The board shall require and provide for an 
375.9 	annual nonresident special pharmacy registration for all pharmacies located outside of this 
375.10 	state that regularly dispense medications for Minnesota residents and mail, ship, or deliver 
375.11 	prescription medications into this state. Nonresident special pharmacy registration shall 
375.12 	be granted by the board upon the disclosure and certification by a pharmacy:
375.13 	(1) that it is licensed in the state in which the dispensing facility is located and from 
375.14 	which the drugs are dispensed;
375.15 	(2) the location, names, and titles of all principal corporate officers and all 
375.16 	pharmacists who are dispensing drugs to residents of this state;
375.17 	(3) that it complies with all lawful directions and requests for information from 
375.18 	the Board of Pharmacy of all states in which it is licensed or registered, except that it 
375.19 	shall respond directly to all communications from the board concerning emergency 
375.20 	circumstances arising from the dispensing of drugs to residents of this state;
375.21 	(4) that it maintains its records of drugs dispensed to residents of this state so that the 
375.22 	records are readily retrievable from the records of other drugs dispensed;
375.23 	(5) that it cooperates with the board in providing information to the Board of 
375.24 	Pharmacy of the state in which it is licensed concerning matters related to the dispensing 
375.25 	of drugs to residents of this state; and
375.26 	(6) that during its regular hours of operation, but not less than six days per week, for 
375.27 	a minimum of 40 hours per week, a toll-free telephone service is provided to facilitate 
375.28 	communication between patients in this state and a pharmacist at the pharmacy who has 
375.29 	access to the patients' records; the toll-free number must be disclosed on the label affixed 
375.30 	to each container of drugs dispensed to residents of this state.; and
375.31 	(7) that, upon request of a resident of a long-term care facility located within the 
375.32 	state of Minnesota, the resident's authorized representative, or a contract pharmacy or 
375.33 	licensed health care facility acting on behalf of the resident, the pharmacy will dispense 
375.34 	medications prescribed for the resident in unit-dose packaging or, alternatively, comply 
375.35 	with the provisions of section 151.415, subdivision 5.

376.1 	Sec. 4. [151.415] LONG-TERM CARE RESIDENT ACCESS TO 
376.2 	PHARMACEUTICALS ACT.
376.3 		Subdivision 1.Title; citation. This section may be cited as the "Long-Term Care 
376.4 	Resident Access to Pharmaceuticals Act."
376.5 		Subd. 2.Definitions. For the purposes of this section, the following terms have the 
376.6 	meanings given them unless otherwise provided by text:
376.7 	(a) "Board" means the Board of Pharmacy.
376.8 	(b) "Contract pharmacy" means a pharmacy, licensed under this chapter, which is 
376.9 	under contract to a long-term care facility.
376.10 	(c) "Long-term care facility" means a nursing home licensed under sections 144A.02 
376.11 	to 144A.10, or a boarding care home licensed under sections 144.50 to 144.56. Facilities 
376.12 	not certified under title XIX of the federal Social Security Act are not included in this 
376.13 	definition.
376.14 	(d) "Original dispensing pharmacy" shall mean a pharmacy, licensed in any state in 
376.15 	the United States, which dispenses drugs in bulk prescription containers to a person who 
376.16 	is a resident in a long-term care facility.
376.17 		Subd. 3.Authorization to administer and repackage drugs. (a) A contract 
376.18 	pharmacist or pharmacy may repackage a resident's prescription drugs, which have been 
376.19 	lawfully dispensed from bulk prescription containers by an original dispensing pharmacy, 
376.20 	into a unit-dose system compatible with the system used by the long-term care facility.
376.21 	(b) A long-term care facility may administer drugs to residents of the facility that 
376.22 	have been repackaged according to this subdivision. The contract pharmacy shall notify 
376.23 	the long-term care facility whenever medications have been dispensed according to 
376.24 	this subdivision and must certify that the repackaging and dispensing has been done in 
376.25 	accordance with this subdivision.
376.26 	(c) Drugs may be dispensed for a resident of a long-term care facility according to 
376.27 	this subdivision, provided that:
376.28 	(1) the drug is dispensed by the original dispensing pharmacy according to a current, 
376.29 	valid prescription;
376.30 	(2) the original bulk prescription container for the resident is delivered by the 
376.31 	original dispensing pharmacy directly to the contract pharmacist or pharmacy;
376.32 	(3) the contract pharmacist or pharmacy verifies the name and strength of the drug, 
376.33 	the name of the manufacturer of the drug, the manufacturer's lot or control number, the 
376.34 	manufacturer's expiration date for the drug, and the date the drug was dispensed by the 
376.35 	original dispensing pharmacy;
377.1 	(4) the contract pharmacist or pharmacy verifies the validity and accuracy of the 
377.2 	current prescription order;
377.3 	(5) the contract pharmacist or pharmacy repackages the drug in board-approved 
377.4 	unit-dose packaging, with labeling that complies with Minnesota Rules, part 6800.6300, 
377.5 	and that identifies that the drug has been repackaged according to this section;
377.6 	(6) the resident for whom the medication is repackaged obtains medications from or 
377.7 	receives medications at a discounted rate from the original dispensing pharmacy under the 
377.8 	resident's state or federal health assistance program or a private health insurance plan; and
377.9 	(7) the resident for whom the medication is to be repackaged, or the resident's 
377.10 	authorized representative, has signed an informed consent form provided by the facility 
377.11 	which includes an explanation of the repackaging process and which notifies the resident 
377.12 	of the immunities from liability provided in this section.
377.13 		Subd. 4.Maintenance of records. For each drug repackaged by a contract 
377.14 	pharmacy under this section, the contract pharmacy shall maintain a record for at least 
377.15 	two years of the following information:
377.16 	(1) the name, manufacturer, manufacturer's lot number, manufacturer's expiration 
377.17 	date, and quantity of the drug prescribed;
377.18 	(2) the name and address of the resident for whom the drug was repackaged;
377.19 	(3) the name and address or other identifier of the prescriber;
377.20 	(4) the date the prescription was issued and the date the drug was repackaged;
377.21 	(5) the date the repackaged drug was delivered to the long-term care facility;
377.22 	(6) the directions for use;
377.23 	(7) a copy of the label that was affixed to the repackaged drug;
377.24 	(8) the initials of the packager;
377.25 	(9) the initials of the supervising pharmacist; and
377.26 	(10) the name and business address of the original dispensing pharmacy.
377.27 		Subd. 5.Duties of the original dispensing pharmacy. Upon request of the 
377.28 	resident, the resident's authorized representative, or a contract pharmacy or licensed 
377.29 	health care facility acting on behalf of the resident, the original dispensing pharmacy 
377.30 	is required to deliver medications dispensed for the resident directly to the contract 
377.31 	pharmacist or pharmacy. The original dispensing pharmacy is further required to provide 
377.32 	the contract pharmacist or pharmacy with the name and strength of the drug, the name of 
377.33 	the manufacturer of the drug, the manufacturer's lot or control number, the manufacturer's 
377.34 	expiration date for the drug, and the date the drug was dispensed.
377.35 		Subd. 6.Redispensing of returned drugs prohibited. Unused drugs repackaged 
377.36 	according to this section that are returned to any pharmacy shall not be redispensed.
378.1 		Subd. 7.Immunity from civil liability. (a) A contract pharmacist or pharmacy 
378.2 	and its employees or agents repackaging a drug acquired from an original dispensing 
378.3 	pharmacy shall be immune from civil liability arising from harm caused by the drug due 
378.4 	to acts or omissions of other persons outside of the contract pharmacist or pharmacy if the 
378.5 	contract pharmacist or pharmacy properly repackages the drug according to this section.
378.6 	(b) A long-term care facility and the facility's employees or agents who properly 
378.7 	administer a drug repackaged by a contract pharmacist or pharmacy under this section 
378.8 	shall be immune from civil liability arising from harm caused by the drug due to acts or 
378.9 	omissions of other persons outside the long-term care facility.
378.10 		Subd. 8.Handling fee. A contract pharmacist or pharmacy may charge a monthly 
378.11 	fee of no more than 250 percent of the medical assistance program dispensing fee for 
378.12 	each drug repackaged according to this section, but no more than $100 per month for 
378.13 	each individual resident.

378.14 	Sec. 5. Minnesota Statutes 2006, section 152.11, is amended by adding a subdivision to 
378.15 	read:
378.16 		Subd. 2d.Identification requirement for schedule II or III controlled substance.
 378.17 	No person may dispense a controlled substance included in schedule II or III without 
378.18 	requiring the person purchasing the controlled substance, who need not be the person for 
378.19 	whom the controlled substance prescription is written, to present valid photographic 
378.20 	identification, unless the person purchasing the controlled substance, or if applicable the 
378.21 	person for whom the controlled substance prescription is written, is known to the dispenser.

378.22 	Sec. 6. [152.126] SCHEDULE II AND III CONTROLLED SUBSTANCES 
378.23 	PRESCRIPTION ELECTRONIC REPORTING SYSTEM.
378.24 		Subdivision 1.Definitions. For purposes of this section, the terms defined in this 
378.25 	subdivision have the meanings given.
378.26 	(a) "Board" means the Minnesota State Board of Pharmacy established under 
378.27 	chapter 151.
378.28 	(b) "Controlled substances" means those substances listed in section 152.02, 
378.29 	subdivisions 3 and 4, and those substances defined by the board pursuant to section 
378.30 	152.02, subdivisions 7, 8, and 12.
378.31 	(c) "Dispense" or "dispensing" has the meaning given in section 151.01, subdivision 
378.32 	30. Dispensing does not include the direct administering of a controlled substance to a 
378.33 	patient by a licensed health care professional.
379.1 	(d) "Dispenser" means a person authorized by law to dispense a controlled substance, 
379.2 	pursuant to a valid prescription. A dispenser does not include a licensed hospital pharmacy 
379.3 	that distributes controlled substances for inpatient hospital care.
379.4 	(e) "Prescriber" means a licensed health care professional who is authorized to 
379.5 	prescribe a controlled substance under section 152.12, subdivision 1.
379.6 	(f) "Prescription" has the meaning given in section 151.01, subdivision 16.
379.7 		Subd. 2.Prescription electronic reporting system. (a) The board shall establish 
379.8 	by January 1, 2009, an electronic system for reporting the information required under 
379.9 	subdivision 4 for all controlled substances dispensed within the state. Data for controlled 
379.10 	substance prescriptions that are dispensed in a quantity small enough to provide treatment 
379.11 	to a patient for a period of 48 hours or less need not be reported.
379.12 	(b) The board may contract with a vendor for the purpose of obtaining technical 
379.13 	assistance in the design, implementation, and maintenance of the electronic reporting 
379.14 	system. The vendor's role shall be limited to providing technical support to the board 
379.15 	concerning the software, databases, and computer systems required to interface with the 
379.16 	existing systems currently used by pharmacies to dispense prescriptions and transmit 
379.17 	prescription data to other third parties.
379.18 		Subd. 3.Prescription Electronic Reporting Advisory Committee. (a) The 
379.19 	board shall convene an advisory committee. The committee must include at least one 
379.20 	representative of:
379.21 	(1) the Department of Health;
379.22 	(2) the Department of Human Services;
379.23 	(3) each health-related licensing board that licenses prescribers;
379.24 	(4) a professional medical association, which may include an association of pain 
379.25 	management and chemical dependency specialists;
379.26 	(5) a professional pharmacy association; 
379.27 	(6) a consumer privacy or security advocate; and 
379.28 	(7) a consumer or patient rights organization.
379.29 	(b) The advisory committee shall advise the board on the development and operation 
379.30 	of the electronic reporting system, including, but not limited to:
379.31 	(1) technical standards for electronic prescription drug reporting;
379.32 	(2) proper analysis and interpretation of prescription monitoring data; and
379.33 	(3) an evaluation process for the program.
379.34 	(c) The Board of Pharmacy, after consultation with the advisory committee, shall 
379.35 	present recommendations and draft legislation on the issues addressed by the advisory 
379.36 	committee under paragraph (b), to the legislature by December 15, 2007.
380.1 		Subd. 4.Reporting requirements; notice. (a) Each dispenser must submit the 
380.2 	following data to the board or its designated vendor, subject to the notice required under 
380.3 	paragraph (d):
380.4 	(1) name of the prescriber;
380.5 	(2) national provider identifier of the prescriber;
380.6 	(3) name of the dispenser;
380.7 	(4) national provider identifier of the dispenser;
380.8 	(5) name of the patient for whom the prescription was written;
380.9 	(6) date of birth of the patient for whom the prescription was written;
380.10 	(7) date the prescription was written;
380.11 	(8) date the prescription was filled;
380.12 	(9) name and strength of the controlled substance;
380.13 	(10) quantity of controlled substance prescribed; and
380.14 	(11) quantity of controlled substance dispensed.
380.15 	(b) The dispenser must submit the required information by a procedure and in a 
380.16 	format established by the board.
380.17 	(c) A dispenser is not required to submit this data for those controlled substance 
380.18 	prescriptions dispensed for:
380.19 	(1) individuals residing in licensed skilled nursing or intermediate care facilities;
380.20 	(2) individuals receiving assisted living services under chapter 144G or through a 
380.21 	medical assistance home and community-based waiver;
380.22 	(3) individuals receiving medication intravenously;
380.23 	(4) individuals receiving hospice and other palliative or end-of-life care; and
380.24 	(5) individuals receiving services from a home care provider regulated under chapter 
380.25 	144A.
380.26 	(d) A dispenser must not submit data under this subdivision unless a conspicuous 
380.27 	notice of the reporting requirements of this section is given to the patient for whom the 
380.28 	prescription was written.
380.29 		Subd. 5.Use of data by board. (a) The board shall develop and maintain a database 
380.30 	of the data reported under subdivision 4. The board shall maintain data that could identify 
380.31 	an individual prescriber or dispenser in encrypted form. The database may be used by 
380.32 	permissible users identified under subdivision 6 for the identification of:
380.33 	(1) individuals receiving prescriptions for controlled substances from prescribers 
380.34 	who subsequently obtain controlled substances from dispensers in quantities or with 
380.35 	a frequency inconsistent with standards accepted by national and international pain 
380.36 	management associations of dosage for those controlled substances; and 
381.1 	(2) individuals presenting forged or otherwise false or altered prescriptions for 
381.2 	controlled substances to dispensers. 
381.3 	(b) No permissible user identified under subdivision 6 may access the database 
381.4 	for the sole purpose of identifying prescribers of controlled substances for unusual or 
381.5 	excessive prescribing patterns without a valid search warrant or court order.
381.6 	(c) No personnel of a state or federal occupational licensing board or agency may 
381.7 	access the database for the purpose of obtaining information to be used to initiate or 
381.8 	substantiate a disciplinary action against a prescriber.
381.9 	(d) Data reported under subdivision 4 shall be retained by the board in the database 
381.10 	for a 12-month period, and shall be removed from the database 12 months from the date 
381.11 	the data was received.
381.12 		Subd. 6.Access to reporting system data. (a) Except as indicated in this 
381.13 	subdivision, the data submitted to the board under subdivision 4 is private data on 
381.14 	individuals as defined in section 13.02, subdivision 12, and not subject to public disclosure.
381.15 	(b) Except as specified in subdivision 5, the following persons shall be considered 
381.16 	permissible users and may access the data submitted under subdivision 4 in the same or 
381.17 	similar manner, and for the same or similar purposes, as those persons who are authorized 
381.18 	to access similar private data on individuals under federal and state law:
381.19 	(1) a prescriber, to the extent the information relates specifically to a current patient 
381.20 	of the prescriber, to whom the practitioner is prescribing or considering prescribing any 
381.21 	controlled substance;
381.22 	(2) a dispenser, to the extent the information relates specifically to a current patient 
381.23 	to whom that dispenser is dispensing or considering dispensing any controlled substance;
381.24 	(3) an individual who is the recipient of a controlled substance prescription for 
381.25 	which data was submitted under subdivision 4, or a guardian of the individual, parent or 
381.26 	guardian of a minor, or health care agent of the individual acting under a health care 
381.27 	directive under chapter 145C;
381.28 	(4) personnel of the board specifically assigned to conduct a bona fide investigation 
381.29 	of a specific licensee;
381.30 	(5) personnel of the board engaged in the collection of controlled substance 
381.31 	prescription information as part of the assigned duties and responsibilities under this 
381.32 	section;
381.33 	(6) authorized personnel of a vendor under contract with the board who are engaged 
381.34 	in the design, implementation, and maintenance of the electronic reporting system as part 
381.35 	of the assigned duties and responsibilities of their employment, provided that access to data 
381.36 	is limited to the minimum amount necessary to test and maintain the system databases;
382.1 	(7) federal, state, and local law enforcement authorities acting pursuant to a valid 
382.2 	search warrant; and
382.3 	(8) personnel of the medical assistance program assigned to use the data collected 
382.4 	under this section to identify recipients whose usage of controlled substances may warrant 
382.5 	restriction to a single primary care physician, a single outpatient pharmacy, or a single 
382.6 	hospital.
382.7 	For purposes of clause (3), access by an individual includes persons in the definition 
382.8 	of an individual under section 13.02.
382.9 	(c) Any permissible user identified in paragraph (b), who directly accesses 
382.10 	the data electronically, shall implement and maintain a comprehensive information 
382.11 	security program that contains administrative, technical, and physical safeguards that 
382.12 	are appropriate to the user's size and complexity, and the sensitivity of the personal 
382.13 	information obtained. The permissible user shall identify reasonably foreseeable internal 
382.14 	and external risks to the security, confidentiality, and integrity of personal information 
382.15 	that could result in the unauthorized disclosure, misuse, or other compromise of the 
382.16 	information and assess the sufficiency of any safeguards in place to control the risks.
382.17 	(d) The board shall not release data submitted under this section unless it is provided 
382.18 	with evidence, satisfactory to the board, that the person requesting the information is 
382.19 	entitled to receive the data.
382.20 	(e) The board shall not release the name of a prescriber without the written consent 
382.21 	of the prescriber or a valid search warrant or court order. The board shall provide a 
382.22 	mechanism for a prescriber to submit to the board a signed consent authorizing the release 
382.23 	of the prescriber's name when data containing the prescriber's name is requested.
382.24 	(f) The board shall maintain a log of all persons who access the data and shall ensure 
382.25 	that any permissible user complies with paragraph (c) prior to attaining direct access to 
382.26 	the data.
382.27 		Subd. 7.Disciplinary action. (a) A dispenser who knowingly fails to submit data to 
382.28 	the board as required under this section is subject to disciplinary action by the appropriate 
382.29 	health-related licensing board.
382.30 	(b) A prescriber or dispenser authorized to access the data who knowingly discloses 
382.31 	the data in violation of state or federal laws relating to the privacy of health care data 
382.32 	shall be subject to disciplinary action by the appropriate health-related licensing board, 
382.33 	and appropriate civil penalties.
382.34 		Subd. 8.Evaluation and reporting. (a) The board shall evaluate the prescription 
382.35 	electronic reporting system to determine if the system is cost-effective and whether it is 
383.1 	negatively impacting appropriate prescribing practices of controlled substances. The 
383.2 	board may contract with a vendor to design and conduct the evaluation.
383.3 	(b) The board shall submit the evaluation of the system to the legislature by January 
383.4 	15, 2010.
383.5 		Subd. 9.Immunity from liability; no requirement to obtain information. (a) A 
383.6 	pharmacist, prescriber, or other dispenser making a report to the program in good faith 
383.7 	under this section is immune from any civil, criminal, or administrative liability, which 
383.8 	might otherwise be incurred or imposed as a result of the report, or on the basis that the 
383.9 	pharmacist or prescriber did or did not seek or obtain or use information from the program.
383.10 	(b) Nothing in this section shall require a pharmacist, prescriber, or other dispenser 
383.11 	to obtain information about a patient from the program, and the pharmacist, prescriber, 
383.12 	or other dispenser, if acting in good faith, is immune from any civil, criminal, or 
383.13 	administrative liability that might otherwise be incurred or imposed for requesting, 
383.14 	receiving, or using information from the program.

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

383.21 	Sec. 7. Minnesota Statutes 2006, section 245.4874, is amended to read:
383.22 	245.4874 DUTIES OF COUNTY BOARD.
383.23 	(a) The county board must:
383.24 	(1) develop a system of affordable and locally available children's mental health 
383.25 	services according to sections 245.487 to 245.4887;
383.26 	(2) establish a mechanism providing for interagency coordination as specified in 
383.27 	section 245.4875, subdivision 6;
383.28 	(3) consider the assessment of unmet needs in the county as reported by the local 
383.29 	children's mental health advisory council under section 245.4875, subdivision 5, paragraph 
383.30 	(b), clause (3). The county shall provide, upon request of the local children's mental health 
383.31 	advisory council, readily available data to assist in the determination of unmet needs;
383.32 	(4) assure that parents and providers in the county receive information about how to 
383.33 	gain access to services provided according to sections 245.487 to 245.4887;
384.1 	(5) coordinate the delivery of children's mental health services with services 
384.2 	provided by social services, education, corrections, health, and vocational agencies to 
384.3 	improve the availability of mental health services to children and the cost-effectiveness of 
384.4 	their delivery;
384.5 	(6) assure that mental health services delivered according to sections 245.487
384.6 	to 245.4887 are delivered expeditiously and are appropriate to the child's diagnostic 
384.7 	assessment and individual treatment plan;
384.8 	(7) provide the community with information about predictors and symptoms of 
384.9 	emotional disturbances and how to access children's mental health services according to 
384.10 	sections 245.4877 and 245.4878;
384.11 	(8) provide for case management services to each child with severe emotional 
384.12 	disturbance according to sections 245.486; 245.4871, subdivisions 3 and 4; and 245.4881, 
384.13 	subdivisions 1, 3, and 5;
384.14 	(9) provide for screening of each child under section 245.4885 upon admission 
384.15 	to a residential treatment facility, acute care hospital inpatient treatment, or informal 
384.16 	admission to a regional treatment center;
384.17 	(10) prudently administer grants and purchase-of-service contracts that the county 
384.18 	board determines are necessary to fulfill its responsibilities under sections 245.487 to 
384.19 	245.4887;
384.20 	(11) assure that mental health professionals, mental health practitioners, and case 
384.21 	managers employed by or under contract to the county to provide mental health services 
384.22 	are qualified under section 245.4871;
384.23 	(12) assure that children's mental health services are coordinated with adult mental 
384.24 	health services specified in sections 245.461 to 245.486 so that a continuum of mental 
384.25 	health services is available to serve persons with mental illness, regardless of the person's 
384.26 	age;
384.27 	(13) assure that culturally informed mental health consultants are used as necessary 
384.28 	to assist the county board in assessing and providing appropriate treatment for children of 
384.29 	cultural or racial minority heritage; and
384.30 	(14) consistent with section 245.486, arrange for or provide a children's mental 
384.31 	health screening to a child receiving child protective services or a child in out-of-home 
384.32 	placement, a child for whom parental rights have been terminated, a child found to be 
384.33 	delinquent, and a child found to have committed a juvenile petty offense for the third 
384.34 	or subsequent time, unless a screening or diagnostic assessment has been performed 
384.35 	within the previous 180 days, or the child is currently under the care of a mental health 
384.36 	professional. The court or county agency must notify a parent or guardian whose 
385.1 	parental rights have not been terminated of the potential mental health screening and the 
385.2 	option to prevent the screening by notifying the court or county agency in writing. The 
385.3 	screening shall be conducted with a screening instrument approved by the commissioner 
385.4 	of human services according to criteria that are updated and issued annually to ensure 
385.5 	that approved screening instruments are valid and useful for child welfare and juvenile 
385.6 	justice populations, and shall be conducted by a mental health practitioner as defined in 
385.7 	section 245.4871, subdivision 26, or a probation officer or local social services agency 
385.8 	staff person who is trained in the use of the screening instrument. Training in the use of the 
385.9 	instrument shall include training in the administration of the instrument, the interpretation 
385.10 	of its validity given the child's current circumstances, the state and federal data practices 
385.11 	laws and confidentiality standards, the parental consent requirement, and providing respect 
385.12 	for families and cultural values. If the screen indicates a need for assessment, the child's 
385.13 	family, or if the family lacks mental health insurance, the local social services agency, 
385.14 	in consultation with the child's family, shall have conducted a diagnostic assessment, 
385.15 	including a functional assessment, as defined in section 245.4871. The administration of 
385.16 	the screening shall safeguard the privacy of children receiving the screening and their 
385.17 	families and shall comply with the Minnesota Government Data Practices Act, chapter 
385.18 	13, and the federal Health Insurance Portability and Accountability Act of 1996, Public 
385.19 	Law 104-191. Screening results shall be considered private data and the commissioner 
385.20 	shall not collect individual screening results.
385.21 	(b) When the county board refers clients to providers of children's therapeutic 
385.22 	services and supports under section 256B.0943, the county board must clearly identify 
385.23 	the desired services components not covered under section 256B.0943 and identify the 
385.24 	reimbursement source for those requested services, the method of payment, and the 
385.25 	payment rate to the provider.

385.26 	Sec. 8. Minnesota Statutes 2006, section 253B.185, subdivision 2, is amended to read:
385.27 		Subd. 2.Transfer to correctional facility. (a) If a person has been committed 
385.28 	under this section and later is committed to the custody of the commissioner of corrections 
385.29 	for any reason, including but not limited to, being sentenced for a crime or revocation of 
385.30 	the person's supervised release or conditional release under section 244.05, 609.108, 
385.31 	subdivision 6, or 609.109, subdivision 7, the person shall be transferred to a facility 
385.32 	designated by the commissioner of corrections without regard to the procedures provided 
385.33 	in section 253B.18. 
385.34 	(b) If a person is committed under this section after a commitment to the 
385.35 	commissioner of corrections, the person shall first serve the sentence in a facility 
386.1 	designated by the commissioner of corrections. After the person has served the sentence, 
386.2 	the person shall be transferred to a treatment program designated by the commissioner 
386.3 	of human services.

386.4 	Sec. 9. Minnesota Statutes 2006, section 254A.03, subdivision 3, is amended to read:
386.5 		Subd. 3.Rules for chemical dependency care. The commissioner of human 
386.6 	services shall establish by rule criteria to be used in determining the appropriate level 
386.7 	of chemical dependency care, whether outpatient, inpatient or short-term treatment 
386.8 	programs, for each recipient of public assistance seeking treatment for alcohol or other 
386.9 	drug dependency and abuse problems. The criteria shall address, at least, the family 
386.10 	relationship, past treatment history, medical or physical problems, arrest record, and 
386.11 	employment situation.

386.12 	Sec. 10. Minnesota Statutes 2006, section 254A.16, subdivision 2, is amended to read:
386.13 		Subd. 2.Program and service guidelines. (a) The commissioner shall provide 
386.14 	program and service guidelines and technical assistance to the county boards in carrying 
386.15 	out services authorized under sections section254A.08, 254A.12, 254A.14, and their 
386.16 	responsibilities under chapter 256E. 
386.17 	(b) The commissioner shall recommend to the governor means of improving 
386.18 	the efficiency and effectiveness of comprehensive program services in the state and 
386.19 	maximizing the use of nongovernmental funds for providing comprehensive programs.

386.20 	Sec. 11. Minnesota Statutes 2006, section 254B.02, subdivision 1, is amended to read:
386.21 		Subdivision 1.Chemical dependency treatment allocation. The chemical 
386.22 	dependency funds appropriated for allocation shall be placed in a special revenue account. 
386.23 	The commissioner shall annually transfer funds from the chemical dependency fund to pay 
386.24 	for operation of the drug and alcohol abuse normative evaluation system and to pay for all 
386.25 	costs incurred by adding two positions for licensing of chemical dependency treatment 
386.26 	and rehabilitation programs located in hospitals for which funds are not otherwise 
386.27 	appropriated. For each year of the biennium ending June 30, 1999, the commissioner shall 
386.28 	allocate funds to the American Indian chemical dependency tribal account for treatment 
386.29 	of American Indians by eligible vendors under section 254B.05, equal to the amount 
386.30 	allocated in fiscal year 1997. Six percent of the remaining money must be reserved for 
386.31 	tribal allocation under section 254B.09, subdivisions 4 and 5. The commissioner shall 
386.32 	annually divide the money available in the chemical dependency fund that is not held 
386.33 	in reserve by counties from a previous allocation, or allocated to the American Indian 
387.1 	chemical dependency tribal account. Six percent of the remaining money must be 
387.2 	reserved for the nonreservation American Indian chemical dependency allocation for 
387.3 	treatment of American Indians by eligible vendors under section 254B.05, subdivision 
387.4 	1. The remainder of the money must be allocated among the counties according to the 
387.5 	following formula, using state demographer data and other data sources determined by 
387.6 	the commissioner: 
387.7 	(a) For purposes of this formula, American Indians and children under age 14 are 
387.8 	subtracted from the population of each county to determine the restricted population.
387.9 	(b) The amount of chemical dependency fund expenditures for entitled persons for 
387.10 	services not covered by prepaid plans governed by section 256B.69 in the previous year is 
387.11 	divided by the amount of chemical dependency fund expenditures for entitled persons for 
387.12 	all services to determine the proportion of exempt service expenditures for each county. 
387.13 	(c) The prepaid plan months of eligibility is multiplied by the proportion of exempt 
387.14 	service expenditures to determine the adjusted prepaid plan months of eligibility for 
387.15 	each county.
387.16 	(d) The adjusted prepaid plan months of eligibility is added to the number of 
387.17 	restricted population fee for service months of eligibility for the Minnesota family 
387.18 	investment program, general assistance, and medical assistance and divided by the county 
387.19 	restricted population to determine county per capita months of covered service eligibility.
387.20 	(e) The number of adjusted prepaid plan months of eligibility for the state is added 
387.21 	to the number of fee for service months of eligibility for the Minnesota family investment 
387.22 	program, general assistance, and medical assistance for the state restricted population and 
387.23 	divided by the state restricted population to determine state per capita months of covered 
387.24 	service eligibility.
387.25 	(f) The county per capita months of covered service eligibility is divided by the 
387.26 	state per capita months of covered service eligibility to determine the county welfare 
387.27 	caseload factor.
387.28 	(g) The median married couple income for the most recent three-year period 
387.29 	available for the state is divided by the median married couple income for the same period 
387.30 	for each county to determine the income factor for each county.
387.31 	(h) The county restricted population is multiplied by the sum of the county welfare 
387.32 	caseload factor and the county income factor to determine the adjusted population.
387.33 	(i) $15,000 shall be allocated to each county.
387.34 	(j) The remaining funds shall be allocated proportional to the county adjusted 
387.35 	population.

388.1 	Sec. 12. Minnesota Statutes 2006, section 254B.02, subdivision 5, is amended to read:
388.2 		Subd. 5.Administrative adjustment. The commissioner may make payments to 
388.3 	local agencies from money allocated under this section to support administrative activities 
388.4 	under sections 254B.03 and 254B.04. The administrative payment must not exceed 
388.5 	five percent of the first $50,000, four percent of the next $50,000, and three percent of 
388.6 	the remaining payments for services from the allocation. Twenty-five percent of the 
388.7 	administrative allowance shall be advanced at the beginning of each quarter, based on 
388.8 	the payments for services made in the most recent quarter for which data is available. 
388.9 	Adjustment of any overestimate or underestimate based on actual expenditures shall be 
388.10 	made by the state agency by adjusting the administrative allowance for any succeeding 
388.11 	quarter.

388.12 	Sec. 13. Minnesota Statutes 2006, section 254B.03, subdivision 1, is amended to read:
388.13 		Subdivision 1.Local agency duties. (a) Every local agency shall provide chemical 
388.14 	dependency services to persons residing within its jurisdiction who meet criteria 
388.15 	established by the commissioner for placement in a chemical dependency residential or 
388.16 	nonresidential treatment service. Chemical dependency money must be administered 
388.17 	by the local agencies according to law and rules adopted by the commissioner under 
388.18 	sections 14.001 to 14.69. 
388.19 	(b) In order to contain costs, the county board shall, with the approval of the 
388.20 	commissioner of human services, select eligible vendors of chemical dependency services 
388.21 	who can provide economical and appropriate treatment. Unless the local agency is a social 
388.22 	services department directly administered by a county or human services board, the local 
388.23 	agency shall not be an eligible vendor under section 254B.05. The commissioner may 
388.24 	approve proposals from county boards to provide services in an economical manner or to 
388.25 	control utilization, with safeguards to ensure that necessary services are provided. If a 
388.26 	county implements a demonstration or experimental medical services funding plan, the 
388.27 	commissioner shall transfer the money as appropriate. If a county selects a vendor located 
388.28 	in another state, the county shall ensure that the vendor is in compliance with the rules 
388.29 	governing licensure of programs located in the state. 
388.30 	(c) The calendar year 2002 rate for vendors may not increase more than three 
388.31 	percent above the rate approved in effect on January 1, 2001. The calendar year 2003 
388.32 	rate for vendors may not increase more than three percent above the rate in effect on 
388.33 	January 1, 2002. The calendar years 2004 and 2005 rates may not exceed the rate in 
388.34 	effect on January 1, 2003.
389.1 	(d) (c) A culturally specific vendor that provides assessments under a variance under 
389.2 	Minnesota Rules, part 9530.6610, shall be allowed to provide assessment services to 
389.3 	persons not covered by the variance.

389.4 	Sec. 14. Minnesota Statutes 2006, section 254B.03, subdivision 3, is amended to read:
389.5 		Subd. 3.Local agencies to pay state for county share. Local agencies shall submit 
389.6 	invoices to the state on forms supplied by the commissioner and according to procedures 
389.7 	established by the commissioner. Local agencies shall pay the state for the county share 
389.8 	of the invoiced services authorized by the local agency. Payments shall be made at the 
389.9 	beginning of each month for services provided in the previous month. The commissioner 
389.10 	shall bill the county monthly for services, based on the most recent month for which 
389.11 	expenditure information is available. Adjustment of any overestimate or underestimate 
389.12 	based on actual expenditures shall be made by the state agency by adjusting the estimate 
389.13 	for any succeeding month.

389.14 	Sec. 15. Minnesota Statutes 2006, section 254B.06, subdivision 3, is amended to read:
389.15 		Subd. 3.Payment; denial. The commissioner shall pay eligible vendors for 
389.16 	placements made by local agencies under section 254B.03, subdivision 1, and placements 
389.17 	by tribal designated agencies according to section 254B.09. The commissioner may 
389.18 	reduce or deny payment of the state share when services are not provided according to the 
389.19 	placement criteria established by the commissioner. The commissioner may pay for all or 
389.20 	a portion of improper county chemical dependency placements and bill the county for the 
389.21 	entire payment made when the placement did not comply with criteria established by the 
389.22 	commissioner. The commissioner may make payments to vendors and charge the county 
389.23 	100 percent of the payments if documentation of a county approved placement is received 
389.24 	more than 30 working days, exclusive of weekends and holidays, after the date services 
389.25 	began; or if the county approved invoice is received by the commissioner more than 120 
389.26 	days after the last date of service provided. The commissioner shall not pay vendors until 
389.27 	private insurance company claims have been settled. 

389.28 	Sec. 16. Minnesota Statutes 2006, section 256B.0625, subdivision 23, is amended to 
389.29 	read:
389.30 		Subd. 23.Day treatment services. Medical assistance covers day treatment 
389.31 	services as specified in sections 245.462, subdivision 8, and 245.4871, subdivision 10, that 
389.32 	are provided under contract with the county board. Notwithstanding Minnesota Rules, 
389.33 	part 9505.0323, subpart 15, the commissioner may set authorization thresholds for day 
390.1 	treatment for adults according to section 256B.0625, subdivision 25. Notwithstanding 
390.2 	Minnesota Rules, part 9505.0323, subpart 15, effective July 1, 2004, medical assistance 
390.3 	covers day treatment services for children as specified under section 256B.0943. 

390.4 	Sec. 17. Minnesota Statutes 2006, section 256B.0943, subdivision 6, is amended to 
390.5 	read:
390.6 		Subd. 6.Provider entity clinical infrastructure requirements. (a) To be 
390.7 	an eligible provider entity under this section, a provider entity must have a clinical 
390.8 	infrastructure that utilizes diagnostic assessment, an individualized treatment plan, 
390.9 	service delivery, and individual treatment plan review that are culturally competent, 
390.10 	child-centered, and family-driven to achieve maximum benefit for the client. The provider 
390.11 	entity must review and update the clinical policies and procedures every three years and 
390.12 	must distribute the policies and procedures to staff initially and upon each subsequent 
390.13 	update.
390.14 	(b) The clinical infrastructure written policies and procedures must include policies 
390.15 	and procedures for:
390.16 	(1) providing or obtaining a client's diagnostic assessment that identifies acute and 
390.17 	chronic clinical disorders, co-occurring medical conditions, sources of psychological and 
390.18 	environmental problems, and a functional assessment. The functional assessment must 
390.19 	clearly summarize the client's individual strengths and needs;
390.20 	(2) developing an individual treatment plan that is:
390.21 	(i) based on the information in the client's diagnostic assessment;
390.22 	(ii) developed no later than the end of the first psychotherapy session after the 
390.23 	completion of the client's diagnostic assessment by the mental health professional who 
390.24 	provides the client's psychotherapy;
390.25 	(iii) developed through a child-centered, family-driven planning process that 
390.26 	identifies service needs and individualized, planned, and culturally appropriate 
390.27 	interventions that contain specific treatment goals and objectives for the client and the 
390.28 	client's family or foster family;
390.29 	(iv) reviewed at least once every 90 days and revised, if necessary; and
390.30 	(v) signed by the client or, if appropriate, by the client's parent or other person 
390.31 	authorized by statute to consent to mental health services for the client;
390.32 	(3) developing an individual behavior plan that documents services to be provided 
390.33 	by the mental health behavioral aide. The individual behavior plan must include:
390.34 	(i) detailed instructions on the service to be provided;
390.35 	(ii) time allocated to each service;
391.1 	(iii) methods of documenting the child's behavior;
391.2 	(iv) methods of monitoring the child's progress in reaching objectives; and
391.3 	(v) goals to increase or decrease targeted behavior as identified in the individual 
391.4 	treatment plan;
391.5 	(4) clinical supervision of the mental health practitioner and mental health behavioral 
391.6 	aide. A mental health professional must document the clinical supervision the professional 
391.7 	provides by cosigning individual treatment plans and making entries in the client's record 
391.8 	on supervisory activities. Clinical supervision does not include the authority to make or 
391.9 	terminate court-ordered placements of the child. A clinical supervisor must be available 
391.10 	for urgent consultation as required by the individual client's needs or the situation. Clinical 
391.11 	supervision may occur individually or in a small group to discuss treatment and review 
391.12 	progress toward goals. The focus of clinical supervision must be the client's treatment 
391.13 	needs and progress and the mental health practitioner's or behavioral aide's ability to 
391.14 	provide services;
391.15 	(4a) CTSS certified provider entities providing day treatment programs must meet 
391.16 	the conditions in items (i) to (iii):
391.17 	(i) the provider supervisor must be present and available on the premises more 
391.18 	than 50 percent of the time in a five-working-day period during which the supervisee is 
391.19 	providing a mental health service;
391.20 	(ii) the diagnosis and the client's individual treatment plan or a change in the 
391.21 	diagnosis or individual treatment plan must be made by or reviewed, approved, and signed 
391.22 	by the provider supervisor; and
391.23 	(iii) every 30 days, the supervisor must review and sign the record of the client's care 
391.24 	for all activities in the preceding 30-day period;
391.25 	(4b) for all other services provided under CTSS, clinical supervision standards 
391.26 	provided in items (i) to (iii) must be used:
391.27 	(i) medical assistance shall reimburse a mental health practitioner who maintains a 
391.28 	consulting relationship with a mental health professional who accepts full professional 
391.29 	responsibility and is present on site for at least one observation during the first 12 hours 
391.30 	in which the mental health practitioner provides the individual, family, or group skills 
391.31 	training to the child or the child's family;
391.32 	(ii) thereafter, the mental health professional is required to be present on site for 
391.33 	observation as clinically appropriate when the mental health practitioner is providing 
391.34 	individual, family, or group skills training to the child or the child's family; and
392.1 	(iii) the observation must be a minimum of one clinical unit. The on-site presence of 
392.2 	the mental health professional must be documented in the child's record and signed by the 
392.3 	mental health professional who accepts full professional responsibility;
392.4 	(5) providing direction to a mental health behavioral aide. For entities that employ 
392.5 	mental health behavioral aides, the clinical supervisor must be employed by the provider 
392.6 	entity or other certified children's therapeutic supports and services provider entity to 
392.7 	ensure necessary and appropriate oversight for the client's treatment and continuity 
392.8 	of care. The mental health professional or mental health practitioner giving direction 
392.9 	must begin with the goals on the individualized treatment plan, and instruct the mental 
392.10 	health behavioral aide on how to construct therapeutic activities and interventions that 
392.11 	will lead to goal attainment. The professional or practitioner giving direction must also 
392.12 	instruct the mental health behavioral aide about the client's diagnosis, functional status, 
392.13 	and other characteristics that are likely to affect service delivery. Direction must also 
392.14 	include determining that the mental health behavioral aide has the skills to interact with 
392.15 	the client and the client's family in ways that convey personal and cultural respect and 
392.16 	that the aide actively solicits information relevant to treatment from the family. The aide 
392.17 	must be able to clearly explain the activities the aide is doing with the client and the 
392.18 	activities' relationship to treatment goals. Direction is more didactic than is supervision 
392.19 	and requires the professional or practitioner providing it to continuously evaluate the 
392.20 	mental health behavioral aide's ability to carry out the activities of the individualized 
392.21 	treatment plan and the individualized behavior plan. When providing direction, the 
392.22 	professional or practitioner must:
392.23 	(i) review progress notes prepared by the mental health behavioral aide for accuracy 
392.24 	and consistency with diagnostic assessment, treatment plan, and behavior goals and the 
392.25 	professional or practitioner must approve and sign the progress notes;
392.26 	(ii) identify changes in treatment strategies, revise the individual behavior plan, 
392.27 	and communicate treatment instructions and methodologies as appropriate to ensure 
392.28 	that treatment is implemented correctly;
392.29 	(iii) demonstrate family-friendly behaviors that support healthy collaboration among 
392.30 	the child, the child's family, and providers as treatment is planned and implemented;
392.31 	(iv) ensure that the mental health behavioral aide is able to effectively communicate 
392.32 	with the child, the child's family, and the provider; and
392.33 	(v) record the results of any evaluation and corrective actions taken to modify the 
392.34 	work of the mental health behavioral aide;
392.35 	(6) providing service delivery that implements the individual treatment plan and 
392.36 	meets the requirements under subdivision 9; and
393.1 	(7) individual treatment plan review. The review must determine the extent to which 
393.2 	the services have met the goals and objectives in the previous treatment plan. The review 
393.3 	must assess the client's progress and ensure that services and treatment goals continue to 
393.4 	be necessary and appropriate to the client and the client's family or foster family. Revision 
393.5 	of the individual treatment plan does not require a new diagnostic assessment unless the 
393.6 	client's mental health status has changed markedly. The updated treatment plan must be 
393.7 	signed by the client, if appropriate, and by the client's parent or other person authorized by 
393.8 	statute to give consent to the mental health services for the child.

393.9 	Sec. 18. Minnesota Statutes 2006, section 256B.0943, subdivision 9, is amended to 
393.10 	read:
393.11 		Subd. 9.Service delivery criteria. (a) In delivering services under this section, a 
393.12 	certified provider entity must ensure that:
393.13 	(1) each individual provider's caseload size permits the provider to deliver services 
393.14 	to both clients with severe, complex needs and clients with less intensive needs. The 
393.15 	provider's caseload size should reasonably enable the provider to play an active role in 
393.16 	service planning, monitoring, and delivering services to meet the client's and client's 
393.17 	family's needs, as specified in each client's individual treatment plan;
393.18 	(2) site-based programs, including day treatment and preschool programs, provide 
393.19 	staffing and facilities to ensure the client's health, safety, and protection of rights, and that 
393.20 	the programs are able to implement each client's individual treatment plan;
393.21 	(3) a day treatment program is provided to a group of clients by a multidisciplinary 
393.22 	team under the clinical supervision of a mental health professional. The day treatment 
393.23 	program must be provided in and by: (i) an outpatient hospital accredited by the Joint 
393.24 	Commission on Accreditation of Health Organizations and licensed under sections 
393.25 	144.50 to 144.55; (ii) a community mental health center under section 245.62; and (iii) 
393.26 	an entity that is under contract with the county board to operate a program that meets 
393.27 	the requirements of sections 245.4712, subdivision 2, and 245.4884, subdivision 2, 
393.28 	and Minnesota Rules, parts 9505.0170 to 9505.0475. The day treatment program must 
393.29 	stabilize the client's mental health status while developing and improving the client's 
393.30 	independent living and socialization skills. The goal of the day treatment program must be 
393.31 	to reduce or relieve the effects of mental illness and provide training to enable the client 
393.32 	to live in the community. The program must be available at least one day a week for a 
393.33 	minimum three-hour time block. The three-hour time block must include at least one 
393.34 	hour, but no more than two hours, of individual or group psychotherapy. The remainder 
393.35 	of the three-hour time block may include recreation therapy, socialization therapy, or 
394.1 	independent living skills therapy, but only if the therapies are included in the client's 
394.2 	individual treatment plan. Day treatment programs are not part of inpatient or residential 
394.3 	treatment services; and 
394.4 	(4) a preschool program is a structured treatment program offered to a child who 
394.5 	is at least 33 months old, but who has not yet reached the first day of kindergarten, by a 
394.6 	preschool multidisciplinary team in a day program licensed under Minnesota Rules, parts 
394.7 	9503.0005 to 9503.0175. The program must be available at least one day a week for a 
394.8 	minimum two-hour time block. The structured treatment program may include individual 
394.9 	or group psychotherapy and recreation therapy, socialization therapy, or independent 
394.10 	living skills therapy, if included in the client's individual treatment plan.
394.11 	(b) A provider entity must deliver the service components of children's therapeutic 
394.12 	services and supports in compliance with the following requirements:
394.13 	(1) individual, family, and group psychotherapy must be delivered as specified in 
394.14 	Minnesota Rules, part 9505.0323;
394.15 	(2) individual, family, or group skills training must be provided by a mental health 
394.16 	professional or a mental health practitioner who has a consulting relationship with a 
394.17 	mental health professional who accepts full professional responsibility for the training;
394.18 	(3) crisis assistance must be time-limited and designed to resolve or stabilize crisis 
394.19 	through arrangements for direct intervention and support services to the child and the 
394.20 	child's family. Crisis assistance must utilize resources designed to address abrupt or 
394.21 	substantial changes in the functioning of the child or the child's family as evidenced by 
394.22 	a sudden change in behavior with negative consequences for well being, a loss of usual 
394.23 	coping mechanisms, or the presentation of danger to self or others;
394.24 	(4) medically necessary services that are provided by a mental health behavioral 
394.25 	aide must be designed to improve the functioning of the child and support the family in 
394.26 	activities of daily and community living. A mental health behavioral aide must document 
394.27 	the delivery of services in written progress notes. The mental health behavioral aide 
394.28 	must implement goals in the treatment plan for the child's emotional disturbance that 
394.29 	allow the child to acquire developmentally and therapeutically appropriate daily living 
394.30 	skills, social skills, and leisure and recreational skills through targeted activities. These 
394.31 	activities may include:
394.32 	(i) assisting a child as needed with skills development in dressing, eating, and 
394.33 	toileting;
394.34 	(ii) assisting, monitoring, and guiding the child to complete tasks, including 
394.35 	facilitating the child's participation in medical appointments;
394.36 	(iii) observing the child and intervening to redirect the child's inappropriate behavior;
395.1 	(iv) assisting the child in using age-appropriate self-management skills as related 
395.2 	to the child's emotional disorder or mental illness, including problem solving, decision 
395.3 	making, communication, conflict resolution, anger management, social skills, and 
395.4 	recreational skills;
395.5 	(v) implementing deescalation techniques as recommended by the mental health 
395.6 	professional;
395.7 	(vi) implementing any other mental health service that the mental health professional 
395.8 	has approved as being within the scope of the behavioral aide's duties; or
395.9 	(vii) assisting the parents to develop and use parenting skills that help the child 
395.10 	achieve the goals outlined in the child's individual treatment plan or individual behavioral 
395.11 	plan. Parenting skills must be directed exclusively to the child's treatment; and
395.12 	(5) direction of a mental health behavioral aide must include the following:
395.13 	(i) a total of one hour of on-site observation by a mental health professional during 
395.14 	the first 12 hours of service provided to a child;
395.15 	(ii) ongoing on-site observation by a mental health professional or mental health 
395.16 	practitioner for at least a total of one hour during every 40 hours of service provided 
395.17 	to a child; and
395.18 	(iii) immediate accessibility of the mental health professional or mental health 
395.19 	practitioner to the mental health behavioral aide during service provision.

395.20 	Sec. 19. Minnesota Statutes 2006, section 256B.0943, subdivision 11, is amended to 
395.21 	read:
395.22 		Subd. 11.Documentation and billing. (a) A provider entity must document the 
395.23 	services it provides under this section. The provider entity must ensure that the entity's 
395.24 	documentation standards meet the requirements of federal and state laws. Services billed 
395.25 	under this section that are not documented according to this subdivision shall be subject to 
395.26 	monetary recovery by the commissioner. The provider entity may not bill for anything 
395.27 	other than direct service time.
395.28 	(b) An individual mental health provider must promptly document the following 
395.29 	in a client's record after providing services to the client:
395.30 	(1) each occurrence of the client's mental health service, including the date, type, 
395.31 	length, and scope of the service;
395.32 	(2) the name of the person who gave the service;
395.33 	(3) contact made with other persons interested in the client, including representatives 
395.34 	of the courts, corrections systems, or schools. The provider must document the name 
395.35 	and date of each contact;
396.1 	(4) any contact made with the client's other mental health providers, case manager, 
396.2 	family members, primary caregiver, legal representative, or the reason the provider did 
396.3 	not contact the client's family members, primary caregiver, or legal representative, if 
396.4 	applicable; and
396.5 	(5) required clinical supervision, as appropriate.

396.6 	Sec. 20. Minnesota Statutes 2006, section 256B.0943, subdivision 12, is amended to 
396.7 	read:
396.8 		Subd. 12.Excluded services. The following services are not eligible for medical 
396.9 	assistance payment as children's therapeutic services and supports:
396.10 	(1) service components of children's therapeutic services and supports 
396.11 	simultaneously provided by more than one provider entity unless prior authorization is 
396.12 	obtained;
396.13 	(2) children's therapeutic services and supports provided in violation of medical 
396.14 	assistance policy in Minnesota Rules, part 9505.0220;
396.15 	(3) mental health behavioral aide services provided by a personal care assistant who 
396.16 	is not qualified as a mental health behavioral aide and employed by a certified children's 
396.17 	therapeutic services and supports provider entity;
396.18 	(4) service components of CTSS that are the responsibility of a residential or 
396.19 	program license holder, including foster care providers under the terms of a service 
396.20 	agreement or administrative rules governing licensure; and
396.21 	(5) adjunctive activities that may be offered by a provider entity but are not 
396.22 	otherwise covered by medical assistance, including:
396.23 	(i) a service that is primarily recreation oriented or that is provided in a setting that 
396.24 	is not medically supervised. This includes sports activities, exercise groups, activities 
396.25 	such as craft hours, leisure time, social hours, meal or snack time, trips to community 
396.26 	activities, and tours;
396.27 	(ii) a social or educational service that does not have or cannot reasonably be 
396.28 	expected to have a therapeutic outcome related to the client's emotional disturbance;
396.29 	(iii) consultation with other providers or service agency staff about the care or 
396.30 	progress of a client;
396.31 	(iv) prevention or education programs provided to the community; and
396.32 	(v) treatment for clients with primary diagnoses of alcohol or other drug abuse.; and
396.33 	(6) activities that are not direct service time.

396.34 	Sec. 21. Minnesota Statutes 2006, section 256E.35, subdivision 2, is amended to read:
397.1 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
397.2 	(b) "Family asset account" means a savings account opened by a household 
397.3 	participating in the Minnesota family assets for independence initiative.
397.4 	(c) "Fiduciary organization" means:
397.5 	(1) a community action agency that has obtained recognition under section 268.53
397.6 	256E.31;
397.7 	(2) a federal community development credit union serving the seven-county 
397.8 	metropolitan area; or
397.9 	(3) a women-oriented economic development agency serving the seven-county 
397.10 	metropolitan area.
397.11 	(d) "Financial institution" means a bank, bank and trust, savings bank, savings 
397.12 	association, or credit union, the deposits of which are insured by the Federal Deposit 
397.13 	Insurance Corporation or the National Credit Union Administration.
397.14 	(e) "Permissible use" means:
397.15 	(1) postsecondary educational expenses at an accredited public postsecondary 
397.16 	institution including books, supplies, and equipment required for courses of instruction;
397.17 	(2) acquisition costs of acquiring, constructing, or reconstructing a residence, 
397.18 	including any usual or reasonable settlement, financing, or other closing costs;
397.19 	(3) business capitalization expenses for expenditures on capital, plant, equipment, 
397.20 	working capital, and inventory expenses of a legitimate business pursuant to a business 
397.21 	plan approved by the fiduciary organization; and
397.22 	(4) acquisition costs of a principal residence within the meaning of section 1034 of 
397.23 	the Internal Revenue Code of 1986 which do not exceed 100 percent of the average area 
397.24 	purchase price applicable to the residence determined according to section 143(e)(2) and 
397.25 	(3) of the Internal Revenue Code of 1986.
397.26 	(f) "Household" means all individuals who share use of a dwelling unit as primary 
397.27 	quarters for living and eating separate from other individuals.

397.28 	Sec. 22. Laws 2005, chapter 98, article 3, section 25, is amended to read:
397.29 	Sec. 25. REPEALER.
 397.30 	Minnesota Statutes 2004, sections 245.713, subdivisions 2 and subdivision 4; 
397.31 	245.716; and 626.5551, subdivision 4, are repealed.

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

397.33 	Sec. 23. FEDERAL GRANTS.
 398.1 	The Board of Pharmacy shall apply for any applicable federal grants or other nonstate 
398.2 	funds to establish and fully implement the prescription electronic reporting system.

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

398.4 	Sec. 24. BOARD OF PHARMACY.
 398.5 	The Board of Pharmacy shall not increase the license fees of pharmacists or 
398.6 	pharmacies in order to adequately fund the prescription electronic reporting system under 
398.7 	Minnesota Statutes, section 152.126, without specific authority from the legislature.

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

398.9 	Sec. 25. BOARD OF MEDICAL PRACTICE.
 398.10 	The Board of Medical Practice shall convene a work group to discuss the appropriate 
398.11 	prescribing of controlled substances listed in Minnesota Statutes, section 152.02, 
398.12 	subdivisions 3 and 4, and those substances defined by the Board of Pharmacy under 
398.13 	Minnesota Statutes, section 152.02, subdivisions 7, 8, and 12, for pain management, and 
398.14 	shall report to the legislature by December 15, 2007.

398.15 	Sec. 26.  REPEALER.
 398.16 	(a) Minnesota Statutes 2006, sections 254A.02, subdivisions 7, 9, 12, 14, 15, and 16; 
398.17 	254A.085; 254A.086; 254A.12; 254A.14; 254A.15; 254A.16, subdivision 5; 254A.175; 
398.18 	254A.18; 256J.561, subdivision 1; 256J.62, subdivision 9; and 256J.65, are repealed.
398.19 	(b) Minnesota Rules, part 9503.0035, subpart 2, is repealed.

398.20 	ARTICLE 12
398.21 	MISCELLANEOUS

398.22 	Section 1. Minnesota Statutes 2006, section 16A.10, is amended by adding a 
398.23 	subdivision to read:
398.24 		Subd. 2a.Base budget detail. Within one week of the release of the budget forecasts 
398.25 	required in section 16A.102 in November of an even-numbered year and February of an 
398.26 	odd-numbered year, the commissioner, after consulting with the commissioners of human 
398.27 	services and health, must provide to the legislature information at the program, budget 
398.28 	activity and management activity level for the base level budget of the Department of 
398.29 	Human Services and the Department of Health for the next biennium. The information 
398.30 	must be organized in a manner that explains how base level budget appropriations are 
398.31 	projected to be spent. Within one week of the release of the budget forecasts required in 
399.1 	section 16A.102 in November of an even-numbered year, the commissioner must also 
399.2 	provide the legislature with the information submitted by the commissioners of human 
399.3 	services and health under subdivision 2, clauses (3) and (4).

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

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

399.10 	Sec. 3. Minnesota Statutes 2006, section 62H.02, is amended to read:
399.11 	62H.02 REQUIRED PROVISIONS.
399.12 	(a) A joint self-insurance plan must include aggregate excess stop-loss coverage and 
399.13 	individual excess stop-loss coverage provided by an insurance company licensed by the 
399.14 	state of Minnesota. 
399.15 	(b) Aggregate excess stop-loss coverage must include provisions to cover incurred, 
399.16 	unpaid claim liability in the event of plan termination. In addition,
399.17 	(c) The plan of self-insurance must have participating employers fund an amount at 
399.18 	least equal to the point at which the excess or stop-loss insurer has contracted to assume 
399.19 	100 percent of additional liability. 
399.20 	(d) A joint self-insurance plan must submit its proposed excess or stop-loss insurance 
399.21 	contract to the commissioner of commerce at least 30 days prior to the proposed plan's 
399.22 	effective date and at least 30 days subsequent to any renewal date. The commissioner shall 
399.23 	review the contract to determine if they meet the standards established by sections 62H.01
399.24 	to 62H.08 and respond within a 30-day period. 
399.25 	(e) Any excess or stop-loss insurance plan must contain a provision that the excess 
399.26 	or stop-loss insurer will give the plan and the commissioner of commerce a minimum of 
399.27 	180 days' notice of termination or nonrenewal. If the plan fails to secure replacement 
399.28 	coverage within 60 days after receipt of the notice of cancellation or nonrenewal, the 
399.29 	commissioner shall issue an order providing for the orderly termination of the plan. 
399.30 	(f) The commissioner may waive the requirements of this section and of any rule 
399.31 	relating to the requirements of this section, if the commissioner determines that a joint 
399.32 	self-insurance plan has established alternative arrangements that fully fund the plan's 
400.1 	liability or incurred but unpaid claims. The commissioner may not waive the requirement 
400.2 	that a joint self-insurance plan have excess stop-loss coverage. 

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

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

400.14 	Sec. 5. Minnesota Statutes 2006, section 62J.07, subdivision 2, is amended to read:
400.15 		Subd. 2.Membership. The Legislative Commission on Health Care Access 
400.16 	consists of fiveseven members of the senate appointed under the rules of the senate and 
400.17 	fiveseven members of the house of representatives appointed under the rules of the house 
400.18 	of representatives. The Legislative Commission on Health Care Access must include 
400.19 	threefour members of the majority party and two three members of the minority party 
400.20 	in each house.

400.21 	Sec. 6. Minnesota Statutes 2006, section 62J.07, subdivision 3, is amended to read:
400.22 		Subd. 3.Reports to the commission. The commissionercommissioners of 
400.23 	health, human services, commerce, and the Health Technology Advisory Committee shall 
400.24 	report on their activities annually and at other times at the request of the Legislative 
400.25 	Commission on Health Care Access. The commissioners of health, commerce, and human 
400.26 	services shall provide periodic reports to the legislative commission on the progress of 
400.27 	rulemaking that is authorized or required under this chapter and shall notify members 
400.28 	of the commission when a draft of a proposed rule has been completed and scheduled 
400.29 	for publication in the State Register. At the request of a member of the commission, 
400.30 	a commissioner shall provide a description and a copy of a proposed rule other state 
400.31 	agencies shall provide assistance and technical support to the commission at the request 
400.32 	of the commission. The commission may convene subcommittees to provide additional 
400.33 	assistance and advice to the commission.

401.1 	Sec. 7. Minnesota Statutes 2006, section 62L.02, subdivision 11, is amended to read:
401.2 		Subd. 11.Dependent. "Dependent" means an eligible employee's spouse, 
401.3 	unmarried child who is under the age of 19 years, unmarried child under the age of 25 
401.4 	years who is a full-time student as defined in section 62A.301, dependent child of any age 
401.5 	who is disabled and who meets the eligibility criteria in section 62A.14, subdivision 2, 
401.6 	or any other person whom state or federal law requires to be treated as a dependent for 
401.7 	purposes of health plans. For the purpose of this definition, a child includes a child for 
401.8 	whom the employee or the employee's spouse has been appointed legal guardian and an 
401.9 	adoptive child as provided in section 62A.27. 

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

401.12 	Sec. 8. Minnesota Statutes 2006, section 144.05, is amended by adding a subdivision 
401.13 	to read:
401.14 		Subd. 5.Base budget detail. The commissioner shall provide the commissioner 
401.15 	of finance with the information necessary to provide base budget detail to the legislature 
401.16 	under section 16A.10, subdivision 2a.

401.17 	Sec. 9. Minnesota Statutes 2006, section 151.37, subdivision 2, is amended to read:
401.18 		Subd. 2.Prescribing and filing. (a) A licensed practitioner in the course of 
401.19 	professional practice only, may prescribe, administer, and dispense a legend drug, and may 
401.20 	cause the same to be administered by a nurse, a physician assistant, or medical student or 
401.21 	resident under the practitioner's direction and supervision, and may cause a person who 
401.22 	is an appropriately certified, registered, or licensed health care professional to prescribe, 
401.23 	dispense, and administer the same within the expressed legal scope of the person's practice 
401.24 	as defined in Minnesota Statutes. A licensed practitioner may prescribe a legend drug, 
401.25 	without reference to a specific patient, by directing a nurse, pursuant to section 148.235, 
401.26 	subdivisions 8 and 9, physician assistant, or medical student or resident to adhere to 
401.27 	a particular practice guideline or protocol when treating patients whose condition falls 
401.28 	within such guideline or protocol, and when such guideline or protocol specifies the 
401.29 	circumstances under which the legend drug is to be prescribed and administered. An 
401.30 	individual who verbally, electronically, or otherwise transmits a written, oral, or electronic 
401.31 	order, as an agent of a prescriber, shall not be deemed to have prescribed the legend drug. 
401.32 	This paragraph applies to a physician assistant only if the physician assistant meets the 
401.33 	requirements of section 147A.18. 
402.1 	(b) A licensed practitioner that dispenses for profit a legend drug that is to be 
402.2 	administered orally, is ordinarily dispensed by a pharmacist, and is not a vaccine, must 
402.3 	file with the practitioner's licensing board a statement indicating that the practitioner 
402.4 	dispenses legend drugs for profit, the general circumstances under which the practitioner 
402.5 	dispenses for profit, and the types of legend drugs generally dispensed. It is unlawful to 
402.6 	dispense legend drugs for profit after July 31, 1990, unless the statement has been filed 
402.7 	with the appropriate licensing board. For purposes of this paragraph, "profit" means (1) 
402.8 	any amount received by the practitioner in excess of the acquisition cost of a legend drug 
402.9 	for legend drugs that are purchased in prepackaged form, or (2) any amount received 
402.10 	by the practitioner in excess of the acquisition cost of a legend drug plus the cost of 
402.11 	making the drug available if the legend drug requires compounding, packaging, or other 
402.12 	treatment. The statement filed under this paragraph is public data under section 13.03. 
402.13 	This paragraph does not apply to a licensed doctor of veterinary medicine or a registered 
402.14 	pharmacist. Any person other than a licensed practitioner with the authority to prescribe, 
402.15 	dispense, and administer a legend drug under paragraph (a) shall not dispense for profit. 
402.16 	To dispense for profit does not include dispensing by a community health clinic when the 
402.17 	profit from dispensing is used to meet operating expenses. 
402.18 	(c) A prescription or drug order for a legend drug is not valid if it is based solely 
402.19 	on an online questionnaire, unless it can be established that the prescription or order was 
402.20 	based on a documented patient evaluation adequate to establish a diagnosis and identify 
402.21 	underlying conditions and contraindications to treatment.

402.22 	Sec. 10. Minnesota Statutes 2006, section 152.11, is amended by adding a subdivision 
402.23 	to read:
402.24 		Subd. 2d.Identification requirement for schedule II or III controlled substance.
 402.25 	(a) No person may dispense a controlled substance included in schedule II or III without 
402.26 	requiring the person purchasing the controlled substance, who need not be the person for 
402.27 	whom the controlled substance prescription is written, to present valid photographic 
402.28 	identification, unless the person purchasing the controlled substance, or if applicable the 
402.29 	person for whom the controlled substance prescription is written, is known to the dispenser.
402.30 	(b) This subdivision applies only to purchases of controlled substances that are not 
402.31 	covered, in whole or in part, by a health plan company or other third-party payor. The 
402.32 	Board of Pharmacy shall report to the legislature by July 1, 2009, on the effect of this 
402.33 	subdivision. The board shall include in the report the incidence of complaints, if any, 
402.34 	generated by the requirements of this subdivision and whether this subdivision is creating 
402.35 	barriers to pharmaceutical access.

403.1 	Sec. 11. Minnesota Statutes 2006, section 169A.70, subdivision 4, is amended to read:
403.2 		Subd. 4.Assessor standards; rules; assessment time limits. A chemical use 
403.3 	assessment required by this section must be conducted by an assessor appointed by the 
403.4 	court. The assessor must meet the training and qualification requirements of rules adopted 
403.5 	by the commissioner of human services under section 254A.03, subdivision 3 (chemical 
403.6 	dependency treatment rules). Notwithstanding section 13.82 (law enforcement data), the 
403.7 	assessor shall have access to any police reports, laboratory test results, and other law 
403.8 	enforcement data relating to the current offense or previous offenses that are necessary 
403.9 	to complete the evaluation. An assessor providing an assessment under this section may 
403.10 	not have any direct or shared financial interest or referral relationship resulting in shared 
403.11 	financial gain with a treatment provider, except as authorized under section 254A.20, 
403.12 	subdivision 3. If an independent assessor is not available, the court may use the services 
403.13 	of an assessor authorized to perform assessments for the county social services agency 
403.14 	under a variance granted under rules adopted by the commissioner of human services 
403.15 	under section 254A.03, subdivision 3. An appointment for the defendant to undergo the 
403.16 	assessment must be made by the court, a court services probation officer, or the court 
403.17 	administrator as soon as possible but in no case more than one week after the defendant's 
403.18 	court appearance. The assessment must be completed no later than three weeks after the 
403.19 	defendant's court appearance. If the assessment is not performed within this time limit, the 
403.20 	county where the defendant is to be sentenced shall perform the assessment. The county 
403.21 	of financial responsibility must be determined under chapter 256G. 

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

403.23 	Sec. 12. Minnesota Statutes 2006, section 179A.03, subdivision 7, is amended to read:
403.24 		Subd. 7.Essential employee. "Essential employee" means firefighters, peace 
403.25 	officers subject to licensure under sections 626.84 to 626.863, 911 system and police and 
403.26 	fire department public safety dispatchers, guards at correctional facilities, confidential 
403.27 	employees, supervisory employees, assistant county attorneys, assistant city attorneys, 
403.28 	principals, and assistant principals. However, for state employees, "essential employee" 
403.29 	means all employees, except for nonprofessional employees employed by the Department 
403.30 	of Human Services in mental health facilities for the treatment of psychopathic 
403.31 	personalities, sexual predators, and the criminally insane, in law enforcement, public 
403.32 	safety radio communications operators, health care professionals, correctional guards, 
403.33 	professional engineering, and supervisory collective bargaining units, irrespective of 
403.34 	severance, and no other employees. For University of Minnesota employees, "essential 
403.35 	employee" means all employees in law enforcement, nursing professional and supervisory 
404.1 	units, irrespective of severance, and no other employees. "Firefighters" means salaried 
404.2 	employees of a fire department whose duties include, directly or indirectly, controlling, 
404.3 	extinguishing, preventing, detecting, or investigating fires. Employees for whom the state 
404.4 	court administrator is the negotiating employer are not essential employees. For Hennepin 
404.5 	Healthcare System, Inc. employees, "essential employees" means all employees.

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

404.7 	Sec. 13. [254A.20] CHEMICAL USE ASSESSMENTS.
404.8 		Subdivision 1.Persons arrested outside of home county. When a chemical use 
404.9 	assessment is required under Minnesota Rules, parts 9530.6600 to 9530.6655, for a person 
404.10 	who is arrested and taken into custody by a peace officer outside of the person's county 
404.11 	of residence, the assessment must be completed by the person's county of residence no 
404.12 	later than three weeks after the assessment is initially requested. If the assessment is 
404.13 	not performed within this time limit, the county where the person is to be sentenced 
404.14 	shall perform the assessment. The county of financial responsibility is determined under 
404.15 	chapter 256G.
404.16 		Subd. 2.Probation officer as contact. When a chemical use assessment is required 
404.17 	under Minnesota Rules, parts 9530.6600 to 9530.6655, for a person who is on probation 
404.18 	or under other correctional supervision, the assessor, either orally or in writing, shall 
404.19 	contact the person's probation officer to verify or supplement the information provided 
404.20 	by the person.
404.21 		Subd. 3.Financial conflicts of interest. (a) Except as provided in paragraph (b), an 
404.22 	assessor conducting a chemical use assessment under Minnesota Rules, parts 9530.6600 
404.23 	to 9530.6655, may not have any direct or shared financial interest or referral relationship 
404.24 	resulting in shared financial gain with a treatment provider.
404.25 	(b) A county may contract with an assessor having a conflict described in paragraph 
404.26 	(a) if the county documents that:
404.27 	(1) the assessor is employed by a culturally specific service provider or a service 
404.28 	provider with a program designed to treat individuals of a specific age, sex, or sexual 
404.29 	preference; 
404.30 	(2) the county does not employ a sufficient number of qualified assessors and the 
404.31 	only qualified assessors available in the county have a direct or shared financial interest or 
404.32 	a referral relationship resulting in shared financial gain with a treatment provider; or 
404.33 	(3) the county social service agency has an existing relationship with an assessor 
404.34 	or service provider and elects to enter into a contract with that assessor to provide both 
405.1 	assessment and treatment under circumstances specified in the county's contract, provided 
405.2 	the county retains responsibility for making placement decisions.
405.3 	An assessor under this paragraph may not place clients in treatment. The assessor 
405.4 	shall gather required information and provide it to the county along with any required 
405.5 	documentation. The county shall make all placement decisions for clients assessed by 
405.6 	assessors under this paragraph.

405.7 	EFFECTIVE DATE. This section is effective July 1, 2007, except for subdivision 
405.8 	3, which is effective the day following final enactment.

405.9 	Sec. 14. Minnesota Statutes 2006, section 256.01, is amended by adding a subdivision 
405.10 	to read:
405.11 		Subd. 25.Base budget detail. The commissioner shall provide the commissioner 
405.12 	of finance with the information necessary to provide base budget detail to the legislature 
405.13 	under section 16A.10, subdivision 2a.

405.14 	Sec. 15. [256B.0636] PRESCRIBING OF CONTROLLED SUBSTANCES; 
405.15 	ABUSE PREVENTION.
405.16 	The commissioner shall develop and implement a plan to:
405.17 	(1) monitor the prescribing of controlled substances listed in section 152.02, 
405.18 	subdivisions 3 and 4, and those substances defined by the Board of Pharmacy under 
405.19 	section 152.02, subdivisions 8 and 12, by enrolled providers and providers under contract 
405.20 	with participating managed care plans;
405.21 	(2) require enrolled providers and providers under contract with participating 
405.22 	managed care plans to report information related to potential patient abuse of the 
405.23 	controlled substances to the commissioner, and the Board of Pharmacy; and
405.24 	(3) provide education to Minnesota health care program enrollees on the proper use 
405.25 	of controlled substances.

405.26 	Sec. 16. Minnesota Statutes 2006, section 609.115, subdivision 8, is amended to read:
405.27 		Subd. 8.Chemical use assessment required. (a) If a person is convicted of a 
405.28 	felony, the probation officer shall determine in the report prepared under subdivision 1 
405.29 	whether or not alcohol or drug use was a contributing factor to the commission of the 
405.30 	offense. If so, the report shall contain the results of a chemical use assessment conducted 
405.31 	in accordance with this subdivision. The probation officer shall make an appointment for 
405.32 	the defendant to undergo the chemical use assessment if so indicated.
406.1 	(b) The chemical use assessment report must include a recommended level of 
406.2 	care for the defendant in accordance with the criteria contained in rules adopted by the 
406.3 	commissioner of human services under section 254A.03, subdivision 3. The assessment 
406.4 	must be conducted by an assessor qualified under rules adopted by the commissioner of 
406.5 	human services under section 254A.03, subdivision 3. An assessor providing a chemical 
406.6 	use assessment may not have any direct or shared financial interest or referral relationship 
406.7 	resulting in shared financial gain with a treatment provider, except as authorized under 
406.8 	section 254A.20, subdivision 3. If an independent assessor is not available, the probation 
406.9 	officer may use the services of an assessor authorized to perform assessments for the 
406.10 	county social services agency under a variance granted under rules adopted by the 
406.11 	commissioner of human services under section 254A.03, subdivision 3. 

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

406.13 	Sec. 17. INTERPRETER SERVICES WORK GROUP.
 406.14 	(a) The commissioner of health shall convene a work group of interested parties to 
406.15 	discuss the provision of interpreter services to patients in medical and dental care settings.
406.16 	(b) The work group shall develop findings and recommendations on the following:
406.17 	(1) ensuring access to interpreter services;
406.18 	(2) compliance with requirements of federal law and guidance;
406.19 	(3) developing a quality assurance program to ensure the quality of health care 
406.20 	interpreting services, including requirements for training and establishing a certification 
406.21 	process; and
406.22 	(4) identifying broad-based funding mechanisms for interpreter services.
406.23 	(c) The work group shall report findings and recommendations to the commissioner 
406.24 	of health and to the chairs of the health policy and finance committees in the house and 
406.25 	senate by January 15, 2008.
406.26 	(d) The work group expires the day following the submission of the report required 
406.27 	by paragraph (c).

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

406.29 	Sec. 18. AGRICULTURAL COOPERATIVE HEALTH PLAN FOR FARMERS.
 406.30 		Subdivision 1.Pilot project requirements. Notwithstanding contrary provisions of 
406.31 	Minnesota Statutes, chapter 62H, the following apply to a joint self-insurance pilot project 
406.32 	administered by a trust sponsored by one or more agricultural cooperatives organized 
406.33 	under Minnesota Statutes, chapter 308A, or under a federal charter for the purpose of 
407.1 	offering health coverage to members of the cooperatives and their families, provided the 
407.2 	project satisfies the other requirements of Minnesota Statutes, chapter 62H:
407.3 	(1) Minnesota Statutes, section 62H.02, paragraph (b), does not apply;
407.4 	(2) the notice period required under Minnesota Statutes, section 62H.02, paragraph 
407.5 	(e), is 90 days;
407.6 	(3) a joint self-insurance plan may elect to treat the sale of a health plan to or for 
407.7 	an employer that has only one eligible employee who has not waived coverage as the 
407.8 	sale of an individual health plan as allowed under Minnesota Statutes, section 62L.02, 
407.9 	subdivision 26;
407.10 	(4) Minnesota Statutes, section 297I.05, subdivision 12, paragraph (c), applies; and
407.11 	(5) the trust must pay the assessment for the Minnesota Comprehensive Health 
407.12 	Association as provided under Minnesota Statutes, section 62E.11.
407.13 		Subd. 2.Evaluation and renewal. The pilot project authorized under this section 
407.14 	is for a period of four years from the date of initial enrollment. The commissioner of 
407.15 	commerce shall grant an extension of four additional years if the trust provides evidence 
407.16 	that it remains in compliance with the requirements of this section and other applicable 
407.17 	laws and rules. If the commissioner determines that the operation of the trust has not 
407.18 	improved access, expanded health plan choices, or improved the affordability of health 
407.19 	coverage for farm families, or that it has significantly damaged access, choice, or 
407.20 	affordability for other consumers not enrolled in the trust, the commissioner shall provide 
407.21 	at least 180 days' advance written notice to the trust and to the chairs of the senate and 
407.22 	house finance and policy committees with jurisdiction over health and insurance of the 
407.23 	commissioner's intention not to renew the pilot project at the expiration of a four-year 
407.24 	period.

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

407.26 	Sec. 19. HEALTH PLAN PURCHASING POOL STUDY GROUP.
 407.27 		Subdivision 1.Creation; membership. (a) A health plan purchasing pool study 
407.28 	group is created to study and make recommendations regarding the creation of a voluntary, 
407.29 	statewide health plan purchasing pool that would contract directly with providers to 
407.30 	provide affordable health coverage to eligible Minnesota residents. The study group is 
407.31 	composed of: 
407.32 	(1) three members of the senate appointed by the Subcommittee on Committees of 
407.33 	the Committee on Rules and Administration, including one member of the minority;
408.1 	(2) three members of the house of representatives, two from the majority party 
408.2 	appointed by the speaker of the house of representatives, and one from the minority party 
408.3 	appointed by the minority leader of the house of representatives;
408.4 	(3) the attorney general or the attorney general's designated representative; 
408.5 	(4) three representatives of health care providers appointed as follows:
408.6 	(i) one member appointed by the governor;
408.7 	(ii) one member appointed by the speaker of the house; and
408.8 	(iii) one member appointed by the Subcommittee on Committees of the senate 
408.9 	Committee on Rules and Administration;
408.10 	(5) one member selected by the American Federation of State, County, and 
408.11 	Municipal employees;
408.12 	(6) one member selected by the Minnesota Association of Professional Employees;
408.13 	(7) one member selected by Education Minnesota;
408.14 	(8) one member selected by the Minnesota Business Partnership; and
408.15 	(9) one member selected by the Metropolitan Interdependent Business Organization.
408.16 	All appointments made under this subdivision must be made within 30 days of the 
408.17 	effective date of this act.
408.18 	(b) The attorney general or the attorney general's designee shall convene the first 
408.19 	meeting of the study group. The study group shall select its chair at the first meeting.
408.20 		Subd. 2.Study; report. The study group shall study and make recommendations 
408.21 	on the following issues related to the creation, maintenance, and funding of a voluntary, 
408.22 	statewide health plan purchasing pool to provide comprehensive, cost-effective, and 
408.23 	medically appropriate health coverage to all public and private employees in Minnesota 
408.24 	and all Minnesota residents:
408.25 	(1) the creation of an independent public entity to administer the pool; 
408.26 	(2) eligibility and participation requirements for existing public and private health 
408.27 	care purchasing pools, public and private employers, and residents of this state; 
408.28 	(3) how to contract directly with providers to provide comprehensive coverage for 
408.29 	preventive, mental health, dental and other medical services, and comprehensive drug 
408.30 	benefits to enrollees and maximize the cost savings and other efficiencies that a large 
408.31 	purchasing pool  would be expected to generate without the need for a public subsidy; 
408.32 	(4) provisions that allow the pool to contract directly with health care providers 
408.33 	to provide coverage to enrollees;
408.34 	(5) incentives designed to attract and retain the maximum number of enrollees; 
409.1 	(6) recommendations for the administration of the pool and the plans that will be 
409.2 	available to enrollees including, but not limited to, recommendations to keep the pool 
409.3 	solvent and profitable so that public subsidies are not necessary; and 
409.4 	(7) other elements the study group concludes are necessary or desirable for the 
409.5 	pool to possess. 
409.6 	The study group shall submit its report and the draft legislation necessary to 
409.7 	implement its recommendations to the chairs of the legislative committees and divisions 
409.8 	with jurisdiction over health care policy and finance, the Health Care Access Commission, 
409.9 	and the governor by February 1, 2008. 
409.10 		Subd. 3.Staffing. State agencies shall assist the study group with any requests for 
409.11 	information the study group considers necessary to complete the study and report under 
409.12 	subdivision 2.
409.13 		Subd. 4.Removal; vacancies; expenses. Removal of members, vacancies, and 
409.14 	expenses for members shall be as provided in Minnesota Statutes, section 15.059.
409.15 		Subd. 5.Expiration. This section expires after the submission of the report as 
409.16 	required in subdivision 2.

409.17 	Sec. 20.  REPEALER.
 409.18 	Minnesota Statutes 2006, section 62A.301, is repealed.

409.19 	ARTICLE 13
409.20 	CHILDREN'S HEALTH PROGRAMS; MINNESOTACARE

409.21 	Section 1. Minnesota Statutes 2006, section 256B.057, is amended by adding a 
409.22 	subdivision to read:
409.23 		Subd. 2c.Extended coverage for children. A child receiving medical assistance 
409.24 	under subdivision 2, who becomes ineligible due to excess income, is eligible for two 
409.25 	additional months of medical assistance. Eligibility under this section is effective 
409.26 	following any coverage available under section 256B.0625.
409.27 	A child eligible for extended coverage under this section is deemed automatically 
409.28 	eligible for MinnesotaCare until renewal. MinnesotaCare coverage begins in accordance 
409.29 	with section 256L.05, subdivision 3.

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

409.32 	Sec. 2. Minnesota Statutes 2006, section 256L.04, subdivision 1, is amended to read:
410.1 		Subdivision 1.Families with children. (a) Families with children with family 
410.2 	income equal to or less than 275 percent of the federal poverty guidelines for the 
410.3 	applicable family size shall be eligible for MinnesotaCare according to this section. All 
410.4 	other provisions of sections 256L.01 to 256L.18, including the insurance-related barriers 
410.5 	to enrollment under section 256L.07, shall apply unless otherwise specified. 
410.6 	(b) Parents who enroll in the MinnesotaCare program must also enroll their children, 
410.7 	if the children are eligible. Children may be enrolled separately without enrollment by 
410.8 	parents. However, if one parent in the household enrolls, both parents must enroll, unless 
410.9 	other insurance is available. If one child from a family is enrolled, all children must 
410.10 	be enrolled, unless other insurance is available. If one spouse in a household enrolls, 
410.11 	the other spouse in the household must also enroll, unless other insurance is available. 
410.12 	Families cannot choose to enroll only certain uninsured members.
410.13 	(c) Beginning October 1, 2003, the dependent sibling definition no longer applies 
410.14 	to the MinnesotaCare program. These persons are no longer counted in the parental 
410.15 	household and may apply as a separate household.
410.16 	(d) Beginning July 1, 2003, or upon federal approval, whichever is later, parents are 
410.17 	not eligible for MinnesotaCare if their gross income exceeds $50,000.
410.18 	(e) Children formerly enrolled in medical assistance and automatically deemed 
410.19 	eligible for MinnesotaCare according to section 256B.057, subdivision 2c, are exempt 
410.20 	from the requirements of this section until renewal.

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

410.23 	Sec. 3. Minnesota Statutes 2006, section 256L.07, is amended by adding a subdivision 
410.24 	to read:
410.25 		Subd. 7.Exception for certain children. Children formerly enrolled in medical 
410.26 	assistance and automatically deemed eligible for MinnesotaCare according to section 
410.27 	256B.057, subdivision 2c, are exempt from the requirements of this section until renewal.

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

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

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

411.3 	Sec. 5. [256L.24] HEALTH CARE ELIGIBILITY FOR CHILDREN.
411.4 		Subdivision 1.Applicability. This section applies to children who are enrolled in a 
411.5 	children's health program.
411.6 		Subd. 2.Application procedure. The commissioner shall develop an application 
411.7 	form for children's health programs for children that is easily understandable and does not 
411.8 	exceed four pages in length. The provisions of section 256L.05, subdivision 1, apply.
411.9 		Subd. 3.Premiums. Children enrolled in MinnesotaCare shall pay premiums as 
411.10 	provided in section 256L.15, except that notwithstanding section 256L.15, subdivision 3, 
411.11 	children in families with incomes at or below 200 percent of the federal poverty guidelines 
411.12 	shall pay a monthly premium of $4.
411.13 		Subd. 4.Eligibility renewal. The commissioner shall require children to renew 
411.14 	eligibility every 12 months.
411.15 		Subd. 5.Employer-subsidized coverage. Section 256L.07, subdivision 2, does 
411.16 	not apply to children.

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

411.19 	Sec. 6. [256L.26] ASSISTANCE TO APPLICANTS.
411.20 	The commissioner shall assist children in choosing a managed care organization or 
411.21 	fee-for-service provider to receive services under a children's health program, by:
411.22 	(1) establishing a Web site to provide information about managed care organizations 
411.23 	and to allow online enrollment;
411.24 	(2) making applications and information on managed care organizations available 
411.25 	to applicants and enrollees according to Title VI of the Civil Rights Act and federal 
411.26 	regulations adopted under that law or any guidance from the United States Department of 
411.27 	Health and Human Services; and
411.28 	(3) making benefit educators available to assist applicants in choosing a managed 
411.29 	care organization.

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

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

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

412.10 	ARTICLE 14
412.11 	HEALTH CARE REFORM POLICY

412.12 	Section 1. Minnesota Statutes 2006, section 62J.82, is amended to read:
412.13 	62J.82 HOSPITAL CHARGEINFORMATION REPORTING DISCLOSURE.
412.14 		Subdivision 1.Required information. The Minnesota Hospital Association shall 
412.15 	develop a Web-based system, available to the public free of charge, for reporting charge 
412.16 	information the following, for Minnesota residents,:
412.17 	(1) hospital-specific performance on the measures of care developed under section 
412.18 	256B.072 for acute myocardial infarction, heart failure, and pneumonia; 
412.19 	(2) by January 1, 2009, hospital-specific performance on the public reporting 
412.20 	measures for hospital-acquired infections as published by the National Quality Forum 
412.21 	and collected by the Minnesota Hospital Association and Stratis Health in collaboration 
412.22 	with infection control practitioners; and 
412.23 	(3) charge information, including, but not limited to, number of discharges, average 
412.24 	length of stay, average charge, average charge per day, and median charge, for each of the 
412.25 	50 most common inpatient diagnosis-related groups and the 25 most common outpatient 
412.26 	surgical procedures as specified by the Minnesota Hospital Association. 
412.27 		Subd. 2.Web site. The Web site must provide information that compares 
412.28 	hospital-specific data to hospital statewide data. The Web site must be established by 
412.29 	October 1, 2006, and must be updated annually. The commissioner shall provide a link to 
412.30 	this reporting information on the department's Web site.
412.31 		Subd. 3.Enforcement. The commissioner shall provide a link to this information 
412.32 	on the department's Web site. If a hospital does not provide this information to the 
412.33 	Minnesota Hospital Association, the commissioner of health may require the hospital to 
413.1 	do so in accordance with section 144.55, subdivision 6. The commissioner shall provide a 
413.2 	link to this information on the department's Web site.

413.3 	ARTICLE 15
413.4 	HEALTH CARE REFORM

413.5 	Section 1. [62A.67] MINNESOTA HEALTH INSURANCE EXCHANGE.
413.6 		Subdivision 1.Title; citation. This section may be cited as the "Minnesota Health 
413.7 	Insurance Exchange."
413.8 		Subd. 2.Creation; tax exemption. The Minnesota Health Insurance Exchange 
413.9 	is created for the limited purpose of providing individuals with greater access, choice, 
413.10 	portability, and affordability of health insurance products. The Minnesota Health 
413.11 	Insurance Exchange is a not-for-profit corporation under chapter 317A and section 501(c) 
413.12 	of the Internal Revenue Code.
413.13 		Subd. 3.Definitions. The following terms have the meanings given them unless 
413.14 	otherwise provided in text.
413.15 	(a) "Board" means the board of directors of the Minnesota Health Insurance 
413.16 	Exchange under subdivision 13.
413.17 	(b) "Commissioner" means: 
413.18 	(1) the commissioner of commerce for health insurers subject to the jurisdiction 
413.19 	of the Department of Commerce; 
413.20 	(2) the commissioner of health for health insurers subject to the jurisdiction of the 
413.21 	Department of Health; or 
413.22 	(3) either commissioner's designated representative.
413.23 	(c) "Exchange" means the Minnesota Health Insurance Exchange.
413.24 	(d) "HIPAA" means the Health Insurance Portability and Accountability Act of 1996.
413.25 	(e) "Individual market health plans," unless otherwise specified, means individual 
413.26 	market health plans defined in section 62A.011.
413.27 	(f) "Section 125 Plan" means a cafeteria or Premium Only Plan under section 125 of 
413.28 	the Internal Revenue Code that allows employees to pay for health insurance premiums 
413.29 	with pretax dollars.
413.30 		Subd. 4.Insurer and health plan participation. All health plans as defined in 
413.31 	section 62A.011, subdivision 3, issued or renewed in the individual market shall participate 
413.32 	in the exchange. No health plans in the individual market may be issued or renewed 
413.33 	outside of the exchange. Group health plans as defined in section 62A.10 shall not be 
413.34 	offered through the exchange. Health plans offered through the Minnesota Comprehensive 
413.35 	Health Association as defined in section 62E.10 are offered through the exchange to 
414.1 	eligible enrollees as determined by the Minnesota Comprehensive Health Association. 
414.2 	Health plans offered through MinnesotaCare under chapter 256L are offered through the 
414.3 	exchange to eligible enrollees as determined by the commissioner of human services.
414.4 		Subd. 5.Approval of health plans. No health plan may be offered through the 
414.5 	exchange unless the commissioner has first certified that:
414.6 	(1) the insurer seeking to offer the health plan is licensed to issue health insurance in 
414.7 	the state;
414.8 	(2) notwithstanding section 62A.021, the health plan meets a loss ratio of 82 percent 
414.9 	as calculated under section 62A.021; and
414.10 	(3) the health plan meets the requirements of this section, and the health plan and the 
414.11 	insurer are in compliance with all other applicable health insurance laws.
414.12 		Subd. 6.Individual market health plans. Individual market health plans offered 
414.13 	through the exchange continue to be regulated by the commissioner as specified in 
414.14 	chapters 62A, 62C, 62D, 62E, 62Q, and 72A, and must include the following provisions 
414.15 	that apply to all health plans issued or renewed through the exchange:
414.16 	(1) premiums for children under the age of 19 shall not vary by age in the exchange; 
414.17 	and
414.18 	(2) premiums for children under the age of 19 must be excluded from rating factors 
414.19 	under section 62A.65, subdivision 3, paragraph (b).
414.20 		Subd. 7.Individual participation and eligibility. Individuals are eligible to 
414.21 	purchase health plans directly through the exchange or through an employer Section 
414.22 	125 Plan under section 62A.68. Nothing in this section requires guaranteed issue of 
414.23 	individual market health plans offered through the exchange. Individuals are eligible to 
414.24 	purchase individual market health plans through the exchange by meeting one or more 
414.25 	of the following qualifications:
414.26 	(1) the individual is a Minnesota resident, meaning the individual is physically 
414.27 	residing on a permanent basis in a place that is the person's principal residence and from 
414.28 	which the person is absent only for temporary purposes;
414.29 	(2) the individual is a student attending an institution outside of Minnesota and 
414.30 	maintains Minnesota residency;
414.31 	(3) the individual is not a Minnesota resident but is employed by an employer 
414.32 	physically located within the state and the individual's employer is required to offer a 
414.33 	Section 125 Plan under section 62A.68;
414.34 	(4) the individual is not a Minnesota resident but is self-employed and the 
414.35 	individual's principal place of business is in the state; or
415.1 	(5) the individual is a dependent as defined in section 62L.02, of another individual 
415.2 	who is eligible to participate in the exchange.
415.3 		Subd. 8.Continuation of coverage. Enrollment in a health plan may be canceled 
415.4 	for nonpayment of premiums, fraud, or changes in eligibility for MinnesotaCare under 
415.5 	chapter 256L. Enrollment in an individual market health plan may not be canceled or 
415.6 	nonrenewed because of any change in employer or employment status, marital status, 
415.7 	health status, age, residence, or any other change that does not affect eligibility as defined 
415.8 	in this section.
415.9 		Subd. 9.Responsibilities of the exchange. The exchange shall serve as the sole 
415.10 	entity for enrollment and collection and transfer of premium payments for health plans 
415.11 	sold to individuals through the exchange. The exchange shall be responsible for the 
415.12 	following functions:
415.13 	(1) publicize the exchange, including but not limited to its functions, eligibility 
415.14 	rules, and enrollment procedures;
415.15 	(2) provide assistance to employers to establish Section 125 Plans under section 
415.16 	62A.68;
415.17 	(3) provide education and assistance to employers to help them understand the 
415.18 	requirements of Section 125 Plans and compliance with applicable regulations;
415.19 	(4) create a system to allow individuals to compare and enroll in health plans offered 
415.20 	through the exchange;
415.21 	(5) create a system to collect and transmit to the applicable plans all premium 
415.22 	payments made by individuals, including developing mechanisms to receive and process 
415.23 	automatic payroll deductions for individuals who purchase coverage through employer 
415.24 	Section 125 Plans;
415.25 	(6) not accept premium payments for individual market health plans from an 
415.26 	employer Section 125 Plan if the employer offers a group health plan as defined in section 
415.27 	62A.10 or has offered a group health plan in the last 12 months, or if the employer is a 
415.28 	self-insurer as defined in section 62E.02;
415.29 	(7) provide jointly with health insurers a cancellation notice directly to the primary 
415.30 	insured at least ten days prior to termination of coverage for nonpayment of premium;
415.31 	(8) bill the employer for the premiums payable by an employee, provided that the 
415.32 	employer is not liable for payment except from payroll deductions for that purpose;
415.33 	(9) refer individuals interested in MinnesotaCare under chapter 256L to the 
415.34 	Department of Human Services to determine eligibility;
415.35 	(10) establish a mechanism with the Department of Human Services to transfer 
415.36 	premiums and subsidies for MinnesotaCare to qualify for federal matching payments;
416.1 	(11) upon request, issue certificates of previous coverage according to the provisions 
416.2 	of HIPAA and as referenced in section 62Q.181 to all such individuals who cease to be 
416.3 	covered by a participating health plan through the exchange;
416.4 	(12) establish procedures to account for all funds received and disbursed by the 
416.5 	exchange for individual participants of the exchange; 
416.6 	(13) make available to the public, at the end of each calendar year, a report of an 
416.7 	independent audit of the exchange's accounts; and
416.8 	(14) provide copies of written and signed statements from employers stating that 
416.9 	the employer is not contributing to the employee's premiums for health plans purchased 
416.10 	by an employee through the exchange to all health insurers with enrolled employees of 
416.11 	the employer.
416.12 	Health insurers may rely on the employer's statement in clause (14) provided by the 
416.13 	Minnesota Health Insurance Exchange and are not required to guarantee-issue individual 
416.14 	health plans to the employer's employees.
416.15 		Subd. 10.State not liable. The state of Minnesota shall not be liable for the actions 
416.16 	of the Minnesota Health Insurance Exchange.
416.17 		Subd. 11.Powers of the exchange. The exchange shall have the power to:
416.18 	(1) contract with insurance producers licensed in accident and health insurance 
416.19 	under chapter 60K and vendors to perform one or more of the functions specified in 
416.20 	subdivision 10;
416.21 	(2) contract with employers to collect premiums through a Section 125 Plan for 
416.22 	eligible individuals who purchase an individual market health plan through the exchange;
416.23 	(3) establish and assess fees on health plan premiums of health plans purchased 
416.24 	through the exchange to fund the cost of administering the exchange;
416.25 	(4) seek and directly receive grant funding from government agencies or private 
416.26 	philanthropic organizations to defray the costs of operating the exchange;
416.27 	(5) establish and administer rules and procedures governing the operations of the 
416.28 	exchange;
416.29 	(6) establish one or more service centers within Minnesota;
416.30 	(7) sue or be sued or otherwise take any necessary or proper legal action;
416.31 	(8) establish bank accounts and borrow money; and
416.32 	(9) enter into agreements with the commissioners of commerce, health, human 
416.33 	services, revenue, employment and economic development, and other state agencies as 
416.34 	necessary for the exchange to implement the provisions of this section.
416.35 		Subd. 12.Dispute resolution. The exchange shall establish procedures for 
416.36 	resolving disputes with respect to the eligibility of an individual to participate in the 
417.1 	exchange. The exchange does not have the authority or responsibility to intervene in or 
417.2 	resolve disputes between an individual and a health plan or health insurer. The exchange 
417.3 	shall refer complaints from individuals participating in the exchange to the commissioner 
417.4 	to be resolved according to sections 62Q.68 to 62Q.73.
417.5 		Subd. 13.Governance. The exchange shall be governed by a board of directors 
417.6 	with 11 members. The board shall convene on or before July 1, 2007, after the initial board 
417.7 	members have been selected. The initial board membership consists of the following:
417.8 	(1) the commissioner of commerce;
417.9 	(2) the commissioner of human services;
417.10 	(3) the commissioner of health;
417.11 	(4) four members appointed by a joint committee of the Minnesota senate and the 
417.12 	Minnesota house of representatives to serve three-year terms; and
417.13 	(5) four members appointed by the governor to serve three-year terms.
417.14 		Subd. 14.Subsequent board membership. Ongoing membership of the exchange 
417.15 	consists of the following effective July 1, 2010:
417.16 	(1) the commissioner of commerce;
417.17 	(2) the commissioner of human services;
417.18 	(3) the commissioner of health;
417.19 	(4) two members appointed by the governor with the approval of a joint committee 
417.20 	of the senate and house of representatives to serve two-year terms; and
417.21 	(5) six members elected by the membership of the exchange of which three 
417.22 	are elected to serve a two-year term and three are elected to serve a three-year term. 
417.23 	Appointed and elected members may serve more than one term.
417.24 		Subd. 15.Operations of the board. Officers of the board of directors are elected by 
417.25 	members of the board and serve one-year terms. Six members of the board constitutes a 
417.26 	quorum, and the affirmative vote of six members of the board is necessary and sufficient 
417.27 	for any action taken by the board. Board members serve without pay, but are reimbursed 
417.28 	for actual expenses incurred in the performance of their duties.
417.29 		Subd. 16.Operations of the exchange. The board of directors shall appoint an 
417.30 	exchange director who shall:
417.31 	(1) be a full-time employee of the exchange;
417.32 	(2) administer all of the activities and contracts of the exchange; and 
417.33 	(3) hire and supervise the staff of the exchange.
417.34 		Subd. 17.Insurance producers. An individual has the right to choose any 
417.35 	insurance producer licensed in accident and health insurance under chapter 60K to assist 
417.36 	them in purchasing an individual market health plan through the exchange. When a 
418.1 	producer licensed in accident and health insurance under chapter 60K enrolls an eligible 
418.2 	individual in the exchange, the health plan chosen by an individual may pay the producer 
418.3 	a commission.
418.4 		Subd. 18.Implementation. Health plan coverage through the exchange begins on 
418.5 	January 1, 2009. The exchange must be operational to assist employers and individuals 
418.6 	by September 1, 2008, and be prepared for enrollment by December 1, 2008. Enrollees 
418.7 	of individual market health plans, MinnesotaCare, and the Minnesota Comprehensive 
418.8 	Health Association as of December 2, 2008, are automatically enrolled in the exchange 
418.9 	on January 1, 2009, in the same health plan and at the same premium that they were 
418.10 	enrolled as of December 2, 2008, subject to the provisions of this section. As of January 1, 
418.11 	2009, all enrollees of individual market health plans, MinnesotaCare, and the Minnesota 
418.12 	Comprehensive Health Association shall make premium payments to the exchange.

418.13 	Sec. 2. [62A.68] SECTION 125 PLANS.
418.14 		Subdivision 1.Definitions. The following terms have the meanings given unless 
418.15 	otherwise provided in text:
418.16 	(a) "Current employee" means an employee currently on an employer's payroll other 
418.17 	than a retiree or disabled former employee.
418.18 	(b) "Employer" means a person, firm, corporation, partnership, association, business 
418.19 	trust, or other entity employing one or more persons, including a political subdivision of 
418.20 	the state, filing payroll tax information on such employed person or persons.
418.21 	(c) "Section 125 Plan" means a cafeteria or Premium Only Plan under section 125 
418.22 	of the Internal Revenue Code that allows employees to purchase health insurance with 
418.23 	pretax dollars.
418.24 	(d) "Exchange" means the Minnesota Health Insurance Exchange under section 
418.25 	62A.67.
418.26 	(e) "Exchange director" means the appointed director under section 62A.67, 
418.27 	subdivision 16.
418.28 		Subd. 2.Section 125 Plan requirement. (a) Effective January 1, 2009, all 
418.29 	employers with 11 or more current employees shall establish a Section 125 Plan to 
418.30 	allow their employees to purchase individual market health plan coverage with pretax 
418.31 	dollars. Nothing in this section requires or mandates employers to offer or purchase 
418.32 	health insurance coverage for their employees. The following employers are exempt 
418.33 	from the Section 125 Plan requirement:
418.34 	(1) employers that offer a group health insurance plan as defined in 62A.10;
418.35 	(2) employers that are self-insurers as defined in section 62E.02; and
419.1 	(3) employers with fewer than 11 current employees, except that employers under 
419.2 	this clause may voluntarily offer a Section 125 Plan.
419.3 	(b) Employers that offer a Section 125 Plan may enter into an agreement with the 
419.4 	exchange to administer the employer's Section 125 Plan.
419.5 		Subd. 3.Tracking compliance. By July 1, 2008, the exchange, in consultation with 
419.6 	the commissioners of commerce, health, employment and economic development, and 
419.7 	revenue shall establish a method for tracking employer compliance with the Section 125 
419.8 	Plan requirement.
419.9 		Subd. 4.Employer requirements. Employers that are required to offer or choose 
419.10 	to offer a Section 125 Plan shall:
419.11 	(1) allow employees to purchase any individual market health plan for themselves 
419.12 	and their dependents through the exchange;
419.13 	(2) allow employees to choose any insurance producer licensed in accident and 
419.14 	health insurance under chapter 60K to assist them in purchasing an individual market 
419.15 	health plan through the exchange;
419.16 	(3) provide a written and signed statement to the exchange stating that the employer 
419.17 	is not contributing to the employee's premiums for health plans purchased by an employee 
419.18 	through the exchange;
419.19 	(4) upon an employee's request, deduct premium amounts on a pretax basis in an 
419.20 	amount not to exceed an employee's wages, and remit these employee payments to the 
419.21 	exchange; and
419.22 	(5) provide notice to employees that individual market health plans purchased 
419.23 	through the exchange are not employer-sponsored or administered. Employers shall be 
419.24 	held harmless from any and all liability claims related to the individual market health 
419.25 	plans purchased through the exchange by employees under a Section 125 Plan.
419.26 		Subd. 5.Section 125 eligible health plans. Individuals who are eligible to use 
419.27 	an employer Section 125 Plan to pay for health insurance coverage purchased through 
419.28 	the exchange may enroll in any health plan offered through the exchange for which the 
419.29 	individual is eligible including individual market health plans, MinnesotaCare, and the 
419.30 	Minnesota Comprehensive Health Association.

419.31 	Sec. 3. Minnesota Statutes 2006, section 62E.141, is amended to read:
419.32 	62E.141 INCLUSION IN EMPLOYER-SPONSORED PLAN.
419.33 	No employee of an employer that offers a group health plan, under which the 
419.34 	employee is eligible for coverage, is eligible to enroll, or continue to be enrolled, in 
419.35 	the comprehensive health association, except for enrollment or continued enrollment 
420.1 	necessary to cover conditions that are subject to an unexpired preexisting condition 
420.2 	limitation, preexisting condition exclusion, or exclusionary rider under the employer's 
420.3 	health plan. This section does not apply to persons enrolled in the Comprehensive Health 
420.4 	Association as of June 30, 1993. With respect to persons eligible to enroll in the health 
420.5 	plan of an employer that has more than 29 current employees, as defined in section 
420.6 	62L.02, this section does not apply to persons enrolled in the Comprehensive Health 
420.7 	Association as of December 31, 1994. 

420.8 	Sec. 4. [62J.431] EVIDENCE-BASED HEALTH CARE GUIDELINES.
420.9 	Evidence-based guidelines must meet the following criteria:
420.10 	(1) the scope and application are clear;
420.11 	(2) authorship is stated and any conflicts of interest disclosed;
420.12 	(3) authors represent all pertinent clinical fields or other means of input have been 
420.13 	used;
420.14 	(4) the development process is explicitly stated;
420.15 	(5) the guideline is grounded in evidence;
420.16 	(6) the evidence is cited and grated;
420.17 	(7) the document itself is clear and practical;
420.18 	(8) the document is flexible in use, with exceptions noted or provided for with 
420.19 	general statements;
420.20 	(9) measures are included for use in systems improvement; and
420.21 	(10) the guideline has scheduled reviews and updating.

420.22 	Sec. 5. Minnesota Statutes 2006, section 62J.495, is amended to read:
420.23 	62J.495 HEALTH INFORMATION TECHNOLOGY AND 
420.24 	INFRASTRUCTURE ADVISORY COMMITTEE.
420.25 		Subdivision 1.Establishment; members; duties Implementation. By January 
420.26 	1, 2015, all hospitals and health care providers must have in place an interoperable 
420.27 	electronic health records system within their hospital system or clinical practice setting. 
420.28 	The commissioner of health, in consultation with the Health Information Technology and 
420.29 	Infrastructure Advisory Committee, shall develop a statewide plan to meet this goal, 
420.30 	including uniform standards to be used for the interoperable system for sharing and 
420.31 	synchronizing patient data across systems. The standards must be compatible with federal 
420.32 	efforts. The uniform standards must be developed by January 1, 2009, with a status report 
420.33 	on the development of these standards submitted to the legislature by January 15, 2008.
421.1 		Subd. 2. Health Information Technology and Infrastructure Advisory 
421.2 	Committee. (a) The commissioner shall establish a Health Information Technology 
421.3 	and Infrastructure Advisory Committee governed by section 15.059 to advise the 
421.4 	commissioner on the following matters:
421.5 	(1) assessment of the use of health information technology by the state, licensed 
421.6 	health care providers and facilities, and local public health agencies;
421.7 	(2) recommendations for implementing a statewide interoperable health information 
421.8 	infrastructure, to include estimates of necessary resources, and for determining standards 
421.9 	for administrative data exchange, clinical support programs, patient privacy requirements, 
421.10 	and maintenance of the security and confidentiality of individual patient data; and
421.11 	(3) other related issues as requested by the commissioner.
421.12 	(b) The members of the Health Information Technology and Infrastructure Advisory 
421.13 	Committee shall include the commissioners, or commissioners' designees, of health, 
421.14 	human services, administration, and commerce and additional members to be appointed 
421.15 	by the commissioner to include persons representing Minnesota's local public health 
421.16 	agencies, licensed hospitals and other licensed facilities and providers, private purchasers, 
421.17 	the medical and nursing professions, health insurers and health plans, the state quality 
421.18 	improvement organization, academic and research institutions, consumer advisory 
421.19 	organizations with an interest and expertise in health information technology, and other 
421.20 	stakeholders as identified by the Health Information Technology and Infrastructure 
421.21 	Advisory Committee.
421.22 		Subd. 2.Annual report. (c) The commissioner shall prepare and issue an annual 
421.23 	report not later than January 30 of each year outlining progress to date in implementing a 
421.24 	statewide health information infrastructure and recommending future projects.
421.25 		Subd. 3.Expiration. (d) Notwithstanding section 15.059, this sectionsubdivision 
421.26 	expires June 30, 2009 2015.

421.27 	Sec. 6. [62J.496] ELECTRONIC HEALTH RECORD SYSTEM REVOLVING 
421.28 	ACCOUNT AND LOAN PROGRAM.
421.29 		Subdivision 1.Account establishment. An account is established to provide loans 
421.30 	to eligible borrowers to assist in financing the installation or support of an interoperable 
421.31 	health record system. The system must provide for the interoperable exchange of health 
421.32 	care information between the applicant and, at a minimum, a hospital system, pharmacy, 
421.33 	and a health care clinic or other physician group.
421.34 		Subd. 2.Eligibility. (a) "Eligible borrower" means one of the following:
421.35 	(1) community clinics, as defined under section 145.9268;
422.1 	(2) hospitals eligible for rural hospital capital improvement grants, as defined 
422.2 	in section 144.148;
422.3 	(3) physician clinics located in a community with a population of less than 50,000 
422.4 	according to United States Census Bureau statistics and outside the seven-county 
422.5 	metropolitan area;
422.6 	(4) nursing facilities licensed under sections 144A.01 to 144A.27; and
422.7 	(5) other providers of health or health care services approved by the commissioner 
422.8 	for which interoperable electronic health record capability would improve quality of 
422.9 	care, patient safety, or community health.
422.10 	(b) To be eligible for a loan under this section, the applicant must submit a loan 
422.11 	application to the commissioner of health on forms prescribed by the commissioner. The 
422.12 	application must include, at a minimum:
422.13 	(1) the amount of the loan requested and a description of the purpose or project 
422.14 	for which the loan proceeds will be used;
422.15 	(2) a quote from a vendor;
422.16 	(3) a description of the health care entities and other groups participating in the 
422.17 	project;
422.18 	(4) evidence of financial stability and a demonstrated ability to repay the loan; and
422.19 	(5) a description of how the system to be financed interconnects or plans in the 
422.20 	future to interconnect with other health care entities and provider groups located in the 
422.21 	same geographical area.
422.22 		Subd. 3.Loans. (a) The commissioner of health may make a no interest loan 
422.23 	to a provider or provider group who is eligible under subdivision 2 on a first-come, 
422.24 	first-served basis provided that the applicant is able to comply with this section. The total 
422.25 	accumulative loan principal must not exceed $1,500,000 per loan. The commissioner of 
422.26 	health has discretion over the size and number of loans made.
422.27 	(b) The commissioner of health may prescribe forms and establish an application 
422.28 	process and, notwithstanding section 16A.1283, may impose a reasonable nonrefundable 
422.29 	application fee to cover the cost of administering the loan program. Any application 
422.30 	fees imposed and collected under the electronic health records system revolving account 
422.31 	and loan program in this section are appropriated to the commissioner of health for the 
422.32 	duration of the loan program.
422.33 	(c) The borrower must begin repaying the principal no later than two years from the 
422.34 	date of the loan. Loans must be amortized no later than six years from the date of the loan.
422.35 	(d) Repayments must be credited to the account.
423.1 		Subd. 4.Data classification. Data collected by the commissioner of health on the 
423.2 	application to determine eligibility under subdivision 2 and to monitor borrowers' default 
423.3 	risk or collect payments owed under subdivision 3 are (1) private data on individuals as 
423.4 	defined in section 13.02, subdivision 12; and (2) nonpublic data as defined in section 
423.5 	13.02, subdivision 9. The names of borrowers and the amounts of the loans granted are 
423.6 	public data.

423.7 	Sec. 7. [62J.536] UNIFORM ELECTRONIC TRANSACTIONS AND 
423.8 	IMPLEMENTATION GUIDE STANDARDS.
423.9 		Subdivision 1.Electronic claims and eligibility transactions required. (a) 
423.10 	Beginning January 15, 2009, all group purchasers must accept from health care providers 
423.11 	the eligibility for a health plan transaction described under Code of Federal Regulations, 
423.12 	title 45, part 162, subpart L. Beginning July 15, 2009, all group purchasers must accept 
423.13 	from health care providers the health care claims or equivalent encounter information 
423.14 	transaction described under Code of Federal Regulations, title 45, part 162, subpart K.
423.15 	(b) Beginning January 15, 2009, all group purchasers must transmit to providers the 
423.16 	eligibility for a health plan transaction described under Code of Federal Regulations, title 
423.17 	45, part 162, subpart L. Beginning December 1, 2009, all group purchasers must transmit 
423.18 	to providers the health care payment and remittance advice transaction described under 
423.19 	Code of Federal Regulations, title 45, part 162, subpart P.
423.20 	(c) Beginning January 15, 2009, all health care providers must submit to group 
423.21 	purchasers the eligibility for a health plan transaction described under Code of Federal 
423.22 	Regulations, title 45, part 162, subpart L. Beginning July 15, 2009, all health care 
423.23 	providers must submit to group purchasers the health care claims or equivalent encounter 
423.24 	information transaction described under Code of Federal Regulations, title 45, part 162, 
423.25 	subpart K.
423.26 	(d) Beginning January 15, 2009, all health care providers must accept from group 
423.27 	purchasers the eligibility for a health plan transaction described under Code of Federal 
423.28 	Regulations, title 45, part 162, subpart L. Beginning December 15, 2009, all health care 
423.29 	providers must accept from group purchasers the health care payment and remittance 
423.30 	advice transaction described under Code of Federal Regulations, title 45, part 162, subpart 
423.31 	P.
423.32 	(e) Each of the transactions described in paragraphs (a) to (d) shall require the use 
423.33 	of a single, uniform companion guide to the implementation guides described under 
423.34 	Code of Federal Regulations, title 45, part 162. The companion guides will be developed 
423.35 	pursuant to subdivision 2.
424.1 	(f) Notwithstanding any other provisions in sections 62J.50 to 62J.61, all group 
424.2 	purchasers and health care providers must exchange claims and eligibility information 
424.3 	electronically using the transactions, companion guides, implementation guides, and 
424.4 	timelines required under this subdivision. Group purchasers may not impose any fee on 
424.5 	providers for the use of the transactions prescribed in this subdivision.
424.6 	(g) Nothing in this subdivision shall prohibit group purchasers and health care 
424.7 	providers from using a direct data entry, Web-based methodology for complying with 
424.8 	the requirements of this subdivision. Any direct data entry method for conducting 
424.9 	the transactions specified in this subdivision must be consistent with the data content 
424.10 	component of the single, uniform companion guides required in paragraph (e) and the 
424.11 	implementation guides described under Code of Federal Regulations, title 45, part 162.
424.12 		Subd. 2.Establishing uniform, standard companion guides. (a) At least 12 
424.13 	months prior to the timelines required in subdivision 1, the commissioner of health shall 
424.14 	promulgate rules pursuant to section 62J.61 establishing and requiring group purchasers 
424.15 	and health care providers to use the transactions and the uniform, standard companion 
424.16 	guides required under subdivision 1, paragraph (e).
424.17 	(b) The commissioner of health must consult with the Minnesota Administrative 
424.18 	Uniformity Committee on the development of the single, uniform companion guides 
424.19 	required under subdivision 1, paragraph (e), for each of the transactions in subdivision 1. 
424.20 	The single uniform companion guides required under subdivision 1, paragraph (e), must 
424.21 	specify uniform billing and coding standards. The commissioner of health shall base the 
424.22 	companion guides required under subdivision 1, paragraph (e), billing and coding rules, 
424.23 	and standards on the Medicare program, with modifications that the commissioner deems 
424.24 	appropriate after consulting the Minnesota Administrative Uniformity Committee.
424.25 	(c) No group purchaser or health care provider may add to or modify the single, 
424.26 	uniform companion guides defined in subdivision 1, paragraph (e), through additional 
424.27 	companion guides or other requirements.
424.28 	(d) In promulgating the rules in paragraph (a), the commissioner shall not require 
424.29 	data content that is not essential to accomplish the purpose of the transactions in 
424.30 	subdivision 1.
424.31 		Subd. 3.Definition. Notwithstanding section 62J.03, subdivision 8, for purposes of 
424.32 	this section, "health care provider" includes licensed nursing homes, licensed boarding 
424.33 	care homes, and licensed home care providers.

424.34 	Sec. 8. Minnesota Statutes 2006, section 62J.692, subdivision 1, is amended to read:
425.1 		Subdivision 1.Definitions. For purposes of this section, the following definitions 
425.2 	apply:
425.3 	(a) "Accredited clinical training" means the clinical training provided by a 
425.4 	medical education program that is accredited through an organization recognized by the 
425.5 	Department of Education, the Centers for Medicare and Medicaid Services, or another 
425.6 	national body who reviews the accrediting organizations for multiple disciplines and 
425.7 	whose standards for recognizing accrediting organizations are reviewed and approved by 
425.8 	the commissioner of health in consultation with the Medical Education and Research 
425.9 	Advisory Committee.
425.10 	(b) "Commissioner" means the commissioner of health.
425.11 	(c) "Clinical medical education program" means the accredited clinical training of 
425.12 	physicians (medical students and residents), doctor of pharmacy practitioners, doctors 
425.13 	of chiropractic, dentists, advanced practice nurses (clinical nurse specialists, certified 
425.14 	registered nurse anesthetists, nurse practitioners, and certified nurse midwives), and 
425.15 	physician assistants.
425.16 	(d) "Sponsoring institution" means a hospital, school, or consortium located in 
425.17 	Minnesota that sponsors and maintains primary organizational and financial responsibility 
425.18 	for a clinical medical education program in Minnesota and which is accountable to the 
425.19 	accrediting body.
425.20 	(e) "Teaching institution" means a hospital, medical center, clinic, or other 
425.21 	organization that conducts a clinical medical education program in Minnesota.
425.22 	(f) "Trainee" means a student or resident involved in a clinical medical education 
425.23 	program.
425.24 	(g) "Eligible trainee FTEs FTE's" means the number of trainees, as measured by 
425.25 	full-time equivalent counts, that are at training sites located in Minnesota with acurrently 
425.26 	active medical assistance provider numberenrollment status and a National Provider 
425.27 	Identification (NPI) number where training occurs in either an inpatient or ambulatory 
425.28 	patient care setting and where the training is funded, in part, by patient care revenues.
425.29 	Training that occurs in nursing facility settings is not eligible for funding under this section.

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

425.31 	Sec. 9. Minnesota Statutes 2006, section 62J.692, subdivision 4, is amended to read:
425.32 		Subd. 4.Distribution of funds. (a) Following the distribution described under 
425.33 	paragraph (b), the commissioner shall annually distribute 90 percent ofthe available 
425.34 	medical education funds to all qualifying applicants based on a distribution formula that 
425.35 	reflects a summation of two factors:
426.1 	(1) an education factor, which is determined by the total number of eligible trainee 
426.2 	FTEs and the total statewide average costs per trainee, by type of trainee, in each clinical 
426.3 	medical education program; and
426.4 	(2) a public program volume factor, which is determined by the total volume of 
426.5 	public program revenue received by each training site as a percentage of all public 
426.6 	program revenue received by all training sites in the fund pool; and
426.7 	(2) a supplemental public program volume factor, which is determined by providing 
426.8 	a supplemental payment of 20 percent of each training site's grant to training sites whose 
426.9 	public program revenue accounted for at least 0.98 percent of the total public program 
426.10 	revenue received by all eligible training sites. Grants to training sites whose public 
426.11 	program revenue accounted for less than 0.98 percent of the total public program revenue 
426.12 	received by all eligible training sites shall be reduced by an amount equal to the total 
426.13 	value of the supplemental payment.
426.14 	In this formula, the education factor is weighted at 67 percent and the public program 
426.15 	volume factor is weighted at 33 percent.
426.16 	Public program revenue for the distribution formula includes revenue from medical 
426.17 	assistance, prepaid medical assistance, general assistance medical care, and prepaid 
426.18 	general assistance medical care. Training sites that receive no public program revenue 
426.19 	are ineligible for funds available under this paragraph subdivision.  For purposes of 
426.20 	determining training-site level grants to be distributed under paragraph (a), total statewide 
426.21 	average costs per trainee for medical residents is based on audited clinical training costs 
426.22 	per trainee in primary care clinical medical education programs for medical residents. 
426.23 	Total statewide average costs per trainee for dental residents is based on audited clinical 
426.24 	training costs per trainee in clinical medical education programs for dental students. Total 
426.25 	statewide average costs per trainee for pharmacy residents is based on audited clinical 
426.26 	training costs per trainee in clinical medical education programs for pharmacy students.
426.27 	(b) The commissioner shall annually distribute ten percent of total available medical 
426.28 	education funds to all qualifying applicants based on the percentage received by each 
426.29 	applicant under paragraph (a). These funds are to be used to offset clinical education 
426.30 	costs at eligible clinical training sites based on criteria developed by the clinical medical 
426.31 	education program. Applicants may choose to distribute funds allocated under this 
426.32 	paragraph based on the distribution formula described in paragraph (a). $3,550,000 of the 
426.33 	available medical education funds shall be distributed as follows:
426.34 	(1) $1,475,000 to the University of Minnesota Medical Center-Fairview;
426.35 	(2) $2,075,000 to the University of Minnesota School of Dentistry; and
426.36 	(3) $1,800,000 to the Academic Health Center.
427.1 	(c) Funds distributed shall not be used to displace current funding appropriations 
427.2 	from federal or state sources.
427.3 	(d) Funds shall be distributed to the sponsoring institutions indicating the amount 
427.4 	to be distributed to each of the sponsor's clinical medical education programs based on 
427.5 	the criteria in this subdivision and in accordance with the commissioner's approval letter. 
427.6 	Each clinical medical education program must distribute funds allocated under paragraph 
427.7 	(a) to the training sites as specified in the commissioner's approval letter. Sponsoring 
427.8 	institutions, which are accredited through an organization recognized by the Department 
427.9 	of Education or the Centers for Medicare and Medicaid Services, may contract directly 
427.10 	with training sites to provide clinical training. To ensure the quality of clinical training, 
427.11 	those accredited sponsoring institutions must:
427.12 	(1) develop contracts specifying the terms, expectations, and outcomes of the clinical 
427.13 	training conducted at sites; and
427.14 	(2) take necessary action if the contract requirements are not met. Action may 
427.15 	include the withholding of payments under this section or the removal of students from 
427.16 	the site.
427.17 	(e) Any funds not distributed in accordance with the commissioner's approval letter 
427.18 	must be returned to the medical education and research fund within 30 days of receiving 
427.19 	notice from the commissioner. The commissioner shall distribute returned funds to the 
427.20 	appropriate training sites in accordance with the commissioner's approval letter.
427.21 	(f) The commissioner shall distribute by June 30 of each year an amount equal to 
427.22 	the funds transferred under subdivision 10, plus five percent interest to the University of 
427.23 	Minnesota Board of Regents for the instructional costs of health professional programs 
427.24 	at the Academic Health Center and for interdisciplinary academic initiatives within the 
427.25 	Academic Health Center.
427.26 	(g) A maximum of $150,000 of the funds dedicated to the commissioner under 
427.27 	section 297F.10, subdivision 1, paragraph (b), clause (2), may be used by the commissioner 
427.28 	for administrative expenses associated with implementing this section.

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

427.30 	Sec. 10. Minnesota Statutes 2006, section 62J.692, subdivision 5, is amended to read:
427.31 		Subd. 5.Report. (a) Sponsoring institutions receiving funds under this section 
427.32 	must sign and submit a medical education grant verification report (GVR) to verify that 
427.33 	the correct grant amount was forwarded to each eligible training site. If the sponsoring 
427.34 	institution fails to submit the GVR by the stated deadline, or to request and meet 
427.35 	the deadline for an extension, the sponsoring institution is required to return the full 
428.1 	amount of funds received to the commissioner within 30 days of receiving notice from 
428.2 	the commissioner. The commissioner shall distribute returned funds to the appropriate 
428.3 	training sites in accordance with the commissioner's approval letter.
428.4 	(b) The reports must provide verification of the distribution of the funds and must 
428.5 	include:
428.6 	(1) the total number of eligible trainee FTEs in each clinical medical education 
428.7 	program;
428.8 	(2) the name of each funded program and, for each program, the dollar amount 
428.9 	distributed to each training site;
428.10 	(3) documentation of any discrepancies between the initial grant distribution notice 
428.11 	included in the commissioner's approval letter and the actual distribution;
428.12 	(4) a statement by the sponsoring institution describing the distribution of funds 
428.13 	allocated under subdivision 4, paragraph (b), including information on which clinical 
428.14 	training sites received funding and the rationale used for determining funding priorities;
428.15 	(5) a statement by the sponsoring institution stating that the completed grant 
428.16 	verification report is valid and accurate; and
428.17 	(6)(5) other information the commissioner, with advice from the advisory 
428.18 	committee, deems appropriate to evaluate the effectiveness of the use of funds for medical 
428.19 	education.
428.20 	(c) By February 15 of each year, the commissioner, with advice from the 
428.21 	advisory committee, shall provide an annual summary report to the legislature on the 
428.22 	implementation of this section.

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

428.24 	Sec. 11. Minnesota Statutes 2006, section 62J.692, subdivision 8, is amended to read:
428.25 		Subd. 8.Federal financial participation. (a) The commissioner of human 
428.26 	services shall seek to maximize federal financial participation in payments for medical 
428.27 	education and research costs. If the commissioner of human services determines that 
428.28 	federal financial participation is available for the medical education and research, the 
428.29 	commissioner of health shall transfer to the commissioner of human services the amount 
428.30 	of state funds necessary to maximize the federal funds available. The amount transferred 
428.31 	to the commissioner of human services, plus the amount of federal financial participation, 
428.32 	shall be distributed to medical assistance providers in accordance with the distribution 
428.33 	methodology described in subdivision 4.
429.1 	(b) For the purposes of paragraph (a), The commissioner shall use physician clinic 
429.2 	rates where possible to maximize federal financial participation. Any additional funds that 
429.3 	become available must be distributed under subdivision 4, paragraph (a).

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

429.5 	Sec. 12. Minnesota Statutes 2006, section 62J.81, subdivision 1, is amended to read:
429.6 		Subdivision 1.Required disclosure of estimated payment. (a) A health care 
429.7 	provider, as defined in section 62J.03, subdivision 8, or the provider's designee as agreed 
429.8 	to by that designee, shall, at the request of a consumer, and at no cost to the consumer 
429.9 	or the consumer's employer, provide that consumer with a good faith estimate of the 
429.10 	reimbursementallowable payment the provider expects to receive from the health plan 
429.11 	company in which the consumer is enrolled has agreed to accept from the consumer's 
429.12 	health plan company for the services specified by the consumer, specifying the amount of 
429.13 	the allowable payment due from the health plan company. Health plan companies must 
429.14 	allow contracted providers, or their designee, to release this information. A good faith 
429.15 	estimate must also be made available at the request of a consumer who is not enrolled in 
429.16 	a health plan company.If a consumer has no applicable public or private coverage, the 
429.17 	health care provider must give the consumer, and at no cost to the consumer, a good faith 
429.18 	estimate of the average allowable reimbursement the provider accepts as payment from 
429.19 	private third-party payers for the services specified by the consumer and the estimated 
429.20 	amount the noncovered consumer will be required to pay. Payment information provided 
429.21 	by a provider, or by the provider's designee as agreed to by that designee, to a patient 
429.22 	pursuant to this subdivision does not constitute a legally binding estimate of the allowable 
429.23 	charge for or cost to the consumer of services. 
429.24 	(b) A health plan company, as defined in section 62J.03, subdivision 10, shall, at 
429.25 	the request of an enrollee or the enrollee's designee, provide that enrollee with a good 
429.26 	faith estimate of the reimbursementallowable amount the health plan company would 
429.27 	expect to pay tohas contracted for with a specified provider within the network as total 
429.28 	payment for a health care service specified by the enrollee and the portion of the allowable 
429.29 	amount due from the enrollee and the enrollee's out-of-pocket costs. If requested by the 
429.30 	enrollee, the health plan company shall also provide to the enrollee a good faith estimate 
429.31 	of the enrollee's out-of-pocket cost for the health care service. An estimate provided to 
429.32 	an enrollee under this paragraph is not a legally binding estimate of the reimbursement
429.33 	allowable amount or enrollee's out-of-pocket cost.

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

430.1 	Sec. 13. Minnesota Statutes 2006, section 62L.12, subdivision 2, is amended to read:
430.2 		Subd. 2.Exceptions. (a) A health carrier may sell, issue, or renew individual 
430.3 	conversion policies to eligible employees otherwise eligible for conversion coverage under 
430.4 	section 62D.104 as a result of leaving a health maintenance organization's service area.
430.5 	(b) A health carrier may sell, issue, or renew individual conversion policies to 
430.6 	eligible employees otherwise eligible for conversion coverage as a result of the expiration 
430.7 	of any continuation of group coverage required under sections 62A.146, 62A.17, 62A.21, 
430.8 	62C.142, 62D.101, and 62D.105.
430.9 	(c) A health carrier may sell, issue, or renew conversion policies under section 
430.10 	62E.16 to eligible employees.
430.11 	(d) A health carrier may sell, issue, or renew individual continuation policies to 
430.12 	eligible employees as required.
430.13 	(e) A health carrier may sell, issue, or renew individual health plans if the coverage 
430.14 	is appropriate due to an unexpired preexisting condition limitation or exclusion applicable 
430.15 	to the person under the employer's group health plan or due to the person's need for health 
430.16 	care services not covered under the employer's group health plan.
430.17 	(f) A health carrier may sell, issue, or renew an individual health plan, if the 
430.18 	individual has elected to buy the individual health plan not as part of a general plan to 
430.19 	substitute individual health plans for a group health plan nor as a result of any violation of 
430.20 	subdivision 3 or 4.
430.21 	(g) Nothing in this subdivision relieves a health carrier of any obligation to provide 
430.22 	continuation or conversion coverage otherwise required under federal or state law.
430.23 	(h) Nothing in this chapter restricts the offer, sale, issuance, or renewal of coverage 
430.24 	issued as a supplement to Medicare under sections 62A.3099 to 62A.44, or policies or 
430.25 	contracts that supplement Medicare issued by health maintenance organizations, or those 
430.26 	contracts governed by sections 1833, 1851 to 1859, 1860D, or 1876 of the federal Social 
430.27 	Security Act, United States Code, title 42, section 1395 et seq., as amended.
430.28 	(i) Nothing in this chapter restricts the offer, sale, issuance, or renewal of individual 
430.29 	health plans necessary to comply with a court order.
430.30 	(j) A health carrier may offer, issue, sell, or renew an individual health plan to 
430.31 	persons eligible for an employer group health plan, if the individual health plan is a high 
430.32 	deductible health plan for use in connection with an existing health savings account, in 
430.33 	compliance with the Internal Revenue Code, section 223. In that situation, the same or 
430.34 	a different health carrier may offer, issue, sell, or renew a group health plan to cover 
430.35 	the other eligible employees in the group.
431.1 	(k) A health carrier may offer, sell, issue, or renew an individual health plan to one 
431.2 	or more employees of a small employer if the individual health plan is marketed directly
431.3 	through the Minnesota Health Insurance Exchange under section 62A.67 or 62A.68 to 
431.4 	all employees of the small employer and the small employer does not contribute directly 
431.5 	or indirectly to the premiums or facilitate the administration of the individual health 
431.6 	plan. The requirement to market an individual health plan to all employees through the 
431.7 	Minnesota Health Insurance Exchange under section 62A.67 or 62A.68 does not require 
431.8 	the health carrier to offer or issue an individual health plan to any employee. For purposes 
431.9 	of this paragraph, an employer is not contributing to the premiums or facilitating the 
431.10 	administration of the individual health plan if the employer does not contribute to the 
431.11 	premium and merely collects the premiums from an employee's wages or salary through 
431.12 	payroll deductions and submits payment for the premiums of one or more employees in a 
431.13 	lump sum to the health carrier to the Minnesota Health Insurance Exchange under section 
431.14 	62A.67 or 62A.68. Except for coverage under section 62A.65, subdivision 5, paragraph 
431.15 	(b), or 62E.16, at the request of an employee, the health carrier Minnesota Health Insurance 
431.16 	Exchange under section 62A.67 or 62A.68 may bill the employer for the premiums 
431.17 	payable by the employee, provided that the employer is not liable for payment except 
431.18 	from payroll deductions for that purpose. If an employer is submitting payments under 
431.19 	this paragraph, the health carrier and the Minnesota Health Insurance Exchange under 
431.20 	section 62A.67 or 62A.68 shall jointly provide a cancellation notice directly to the primary 
431.21 	insured at least ten days prior to termination of coverage for nonpayment of premium. 
431.22 	Individual coverage under this paragraph may be offered only if the small employer has 
431.23 	not provided coverage under section 62L.03 to the employees within the past 12 months.
431.24 	The employer must provide a written and signed statement to the health carrier
431.25 	Minnesota Health Insurance Exchange under section 62A.67 or 62A.68 that the employer 
431.26 	is not contributing directly or indirectly to the employee's premiums. The Minnesota 
431.27 	Health Insurance Exchange under section 62A.67 or 62A.68 shall provide all health 
431.28 	carriers with enrolled employees of the employer with a copy of the employer's statement. 
431.29 	The health carrier may rely on the employer's statement provided by the Minnesota Health 
431.30 	Insurance Exchange under section 62A.67 or 62A.68 and is not required to guarantee-issue 
431.31 	individual health plans to the employer's other current or future employees.

431.32 	Sec. 14. Minnesota Statutes 2006, section 62L.12, subdivision 4, is amended to read:
431.33 		Subd. 4.Employer prohibition. A small employer offering a health benefit plan 
431.34 	shall not encourage or direct an employee or applicant to:
432.1 	(1) refrain from filing an application for health coverage when other similarly 
432.2 	situated employees may file an application for health coverage;
432.3 	(2) file an application for health coverage during initial eligibility for coverage, 
432.4 	the acceptance of which is contingent on health status, when other similarly situated 
432.5 	employees may apply for health coverage, the acceptance of which is not contingent on 
432.6 	health status;
432.7 	(3) seek coverage from another health carrier, including, but not limited to, MCHA; 
432.8 	or
432.9 	(4) cause coverage to be issued on different terms because of the health status or 
432.10 	claims experience of that person or the person's dependents.

432.11 	Sec. 15. [62Q.101] EVALUATION OF PROVIDER PERFORMANCE.
432.12 	A health plan company, or a vendor of risk management services as defined under 
432.13 	section 60A.23, subdivision 8, shall, in evaluating the performance of a health care 
432.14 	provider:
432.15 	(1) conduct the evaluation using a bona fide baseline based upon practice experience 
432.16 	of the provider group; and
432.17 	(2) disclose the baseline to the health care provider in writing and prior to the 
432.18 	beginning of the time period used for the evaluation.

432.19 	Sec. 16. Minnesota Statutes 2006, section 62Q.165, subdivision 1, is amended to read:
432.20 		Subdivision 1.Definition. It is the commitment of the state to achieve universal 
432.21 	health coverage for all Minnesotans by the year 2011. Universal coverage is achieved 
432.22 	when:
432.23 	(1) every Minnesotan has access to a full range of quality health care services;
432.24 	(2) every Minnesotan is able to obtain affordable health coverage which pays for the 
432.25 	full range of services, including preventive and primary care; and
432.26 	(3) every Minnesotan pays into the health care system according to that person's 
432.27 	ability.

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

432.29 	Sec. 17. Minnesota Statutes 2006, section 62Q.165, subdivision 2, is amended to read:
432.30 		Subd. 2.Goal. It is the goal of the state to make continuous progress toward 
432.31 	reducing the number of Minnesotans who do not have health coverage so that by January 
432.32 	1, 2000, fewer than four percent of the state's population will be without health coverage
432.33 	2011, all Minnesota residents have access to affordable health care. The goal will be 
433.1 	achieved by improving access to private health coverage through insurance reforms and 
433.2 	market reforms, by making health coverage more affordable for low-income Minnesotans 
433.3 	through purchasing pools and state subsidies, and by reducing the cost of health coverage 
433.4 	through cost containment programs and methods of ensuring that all Minnesotans are 
433.5 	paying into the system according to their ability.

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

433.7 	Sec. 18. Minnesota Statutes 2006, section 144.698, subdivision 1, is amended to read:
433.8 		Subdivision 1.Yearly reports. Each hospital and each outpatient surgical center, 
433.9 	which has not filed the financial information required by this section with a voluntary, 
433.10 	nonprofit reporting organization pursuant to section 144.702, shall file annually with the 
433.11 	commissioner of health after the close of the fiscal year: 
433.12 	(1) a balance sheet detailing the assets, liabilities, and net worth of the hospital or 
433.13 	outpatient surgical center;
433.14 	(2) a detailed statement of income and expenses;
433.15 	(3) a copy of its most recent cost report, if any, filed pursuant to requirements of 
433.16 	Title XVIII of the United States Social Security Act;
433.17 	(4) a copy of all changes to articles of incorporation or bylaws;
433.18 	(5) information on services provided to benefit the community, including services 
433.19 	provided at no cost or for a reduced fee to patients unable to pay, teaching and research 
433.20 	activities, or other community or charitable activities;
433.21 	(6) information required on the revenue and expense report form set in effect on 
433.22 	July 1, 1989, or as amended by the commissioner in rule;
433.23 	(7) information on changes in ownership or control; and
433.24 	(8) other information required by the commissioner in rule.;
433.25 	(9) information on the number of available hospital beds that are dedicated to certain 
433.26 	specialized services, as designated by the commissioner, and annual occupancy rates for 
433.27 	those beds, separately for adult and pediatric care;
433.28 	(10) from outpatient surgical centers, the total number of surgeries; and
433.29 	(11) a report on health care capital expenditures during the previous year, as required 
433.30 	by section 62J.17.

433.31 	Sec. 19. [145.985] HEALTH PROMOTION AND WELLNESS.
433.32 	Community health boards as defined in section 145A.02, subdivision 5, may work 
433.33 	with schools, health care providers, and others to coordinate health and wellness programs 
434.1 	in their communities. In order to meet the requirements of this section, community 
434.2 	health boards may:
434.3 	(1) provide instruction, technical assistance, and recommendations on how to 
434.4 	evaluate project outcomes;
434.5 	(2) assist with on-site health and wellness programs utilizing volunteers and others 
434.6 	addressing health and wellness topics including smoking, nutrition, obesity, and others; and
434.7 	(3) encourage health and wellness programs consistent with the Centers for Disease 
434.8 	Control and Prevention's Community Guide and goals consistent with the Centers for 
434.9 	Disease Control and Prevention's Healthy People 2010 initiative.

434.10 	Sec. 20. Minnesota Statutes 2006, section 256.01, subdivision 2b, is amended to read:
434.11 		Subd. 2b.Performance payments. (a) The commissioner shall develop and 
434.12 	implement a pay-for-performance system to provide performance payments to eligible
434.13 	medical groups and clinics that demonstrate optimum care in serving individuals 
434.14 	with chronic diseases who are enrolled in health care programs administered by the 
434.15 	commissioner under chapters 256B, 256D, and 256L. The commissioner may receive any 
434.16 	federal matching money that is made available through the medical assistance program 
434.17 	for managed care oversight contracted through vendors, including consumer surveys, 
434.18 	studies, and external quality reviews as required by the federal Balanced Budget Act of 
434.19 	1997, Code of Federal Regulations, title 42, part 438-managed care, subpart E-external 
434.20 	quality review. Any federal money received for managed care oversight is appropriated 
434.21 	to the commissioner for this purpose. The commissioner may expend the federal money 
434.22 	received in either year of the biennium.
434.23 	(b) Upon federal approval the commissioner shall develop and implement a patient 
434.24 	incentive health program to provide incentives and rewards to patients who are enrolled in 
434.25 	health care programs administered by the commissioner under chapters 256B, 256D, and 
434.26 	256L, and who have agreed to and have met personal health goals established with the 
434.27 	patients' primary care providers to manage a chronic disease or condition, including but 
434.28 	not limited to diabetes, high blood pressure, and coronary artery disease.

434.29 	Sec. 21. Minnesota Statutes 2006, section 256B.0625, is amended by adding a 
434.30 	subdivision to read:
434.31 		Subd. 49.Provider-directed care coordination services. The commissioner 
434.32 	shall develop and implement a provider-directed care coordination program for medical 
434.33 	assistance recipients who are not enrolled in the prepaid medical assistance program and 
434.34 	who are receiving services on a fee-for-service basis. This program provides payment 
435.1 	to primary care clinics for care coordination for people who have complex and chronic 
435.2 	medical conditions. Clinics must meet certain criteria such as the capacity to develop care 
435.3 	plans; have a dedicated care coordinator; and have an adequate number of fee-for-service 
435.4 	clients, evaluation mechanisms, and quality improvement processes to qualify for 
435.5 	reimbursement. For purposes of this subdivision, a primary care clinic is a medical clinic 
435.6 	designated as the patient's first point of contact for medical care, available 24 hours a 
435.7 	day, seven days a week, that provides or arranges for the patient's comprehensive health 
435.8 	care needs, and provides overall integration, coordination and continuity over time and 
435.9 	referrals for specialty care.

435.10 	Sec. 22. HEALTH CARE PAYMENT SYSTEM REFORM.
 435.11 		Subdivision 1.Payment reform plan. The commissioners of employee relations, 
435.12 	human services, commerce, and health shall develop a plan for promoting and facilitating 
435.13 	changes in payment rates and methods for paying for health care services, drugs, devices, 
435.14 	supplies, and equipment in order to:
435.15 	(1) reward the provision of cost-effective primary and preventive care;
435.16 	(2) reward the use of evidence-based care;
435.17 	(3) discourage underutilization, overuse, and misuse;
435.18 	(4) reward the use of the most cost-effective settings, drugs, devices, providers, 
435.19 	and treatments; and
435.20 	(5) encourage consumers to maintain good health and use the health care system 
435.21 	appropriately.
435.22 	In developing the plan, the commissioners shall analyze existing data to determine 
435.23 	specific services and health conditions for which changes in payment rates and methods 
435.24 	would lead to significant improvements in quality of care. The commissioners shall 
435.25 	include a definition of the term "quality" for uniform understanding of the plan's impact.
435.26 		Subd. 2.Report. The commissioners shall submit a report to the legislature by 
435.27 	December 15, 2007, describing the payment reform plan. The report must include 
435.28 	proposed legislation for implementing those components of the plan requiring legislative 
435.29 	action or appropriations of money.

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

435.31 	Sec. 23. COMMUNITY INITIATIVES TO COVER UNINSURED AND 
435.32 	UNDERINSURED.
 435.33 		Subdivision 1.Community partnerships. The commissioner of health shall 
435.34 	provide planning grants to up to three community partnerships that satisfy the requirements 
436.1 	in this section. A community partnership is eligible for a grant if the community 
436.2 	partnership includes:
436.3 	(1) at least one county;
436.4 	(2) at least one local hospital;
436.5 	(3) at least one local employer who collectively provides at least 300 jobs in the 
436.6 	community;
436.7 	(4) at least one school system;
436.8 	(5) at least one of the following:
436.9 	(i) one or more integrated health care clinics or physician groups. For purposes of 
436.10 	this section, "integrated health care" means integrated mental health and primary care; or
436.11 	(ii) one or more health care clinics or physician groups and one or more mental 
436.12 	health clinics; and
436.13 	(6) a third-party payer, which may include a county-based purchasing plan, an 
436.14 	employer, or a health plan company.
436.15 		Subd. 2Proposal requirements. The planning grants shall be used by community 
436.16 	partnerships to develop a comprehensive proposal to provide affordable health care 
436.17 	services to uninsured and underinsured individuals with chronic health conditions through 
436.18 	an integrated community partnership system. A community partnership requesting a 
436.19 	planning grant must submit to the commissioner a planning proposal that includes:
436.20 	(1) methods for identifying potential uninsured or underinsured individuals and 
436.21 	patients who have or who are at risk of developing a chronic health condition;
436.22 	(2) methods to integrate and coordinate medical, mental health, and chemical health 
436.23 	services with services provided through county social services, corrections, public health, 
436.24 	school districts, and health care providers;
436.25 	(3) providing early intervention and prevention activities; and
436.26 	(4) methods to identify and support accountability across public and private systems, 
436.27 	including means to measure outcomes and economic savings from providing services 
436.28 	through an integrated system.
436.29 		Subd. 3.Planning grant criteria. (a) Proposals for planning grants shall be 
436.30 	submitted to the commissioner. Preference shall be given to planning proposals that:
436.31 	(1) have broad community support from local business, providers, counties, and 
436.32 	other public and private organizations;
436.33 	(2) propose to provide services to uninsured or underinsured individuals of every 
436.34 	age who have or are at risk of developing multiple, co-occurring chronic conditions;
436.35 	(3) integrate or coordinate resources from multiple sources; and
437.1 	(4) demonstrate how administrative costs for health plan companies and providers 
437.2 	can be reduced through greater simplification, coordination, consolidation, standardization, 
437.3 	reducing billing errors, or other methods.
437.4 	(b) Community partnerships receiving a planning grant under this section shall 
437.5 	submit their proposed initiatives to the commissioner by December 15, 2007.
437.6 	(c) The commissioner shall submit a report to the legislature by February 15, 2008, 
437.7 	that:
437.8 	(1) identifies the community partnerships that received a planning grant under this 
437.9 	section; and
437.10 	(2) summarizes the planned initiatives submitted to the commissioner based on 
437.11 	the requirements in this section.

437.12 	Sec. 24. CARE COORDINATION PILOT PROJECTS.
 437.13 		Subdivision 1.Pilot projects. (a) The commissioner of human services shall 
437.14 	develop and administer up to four pilot projects for children and adults with complex 
437.15 	health care needs who are enrolled in fee-for-service medical assistance, to the extent 
437.16 	permitted by federal requirements. At least two of the grantees must focus on children 
437.17 	with autism or children with complex/multi-diagnoses physical conditions. The purpose 
437.18 	of the projects is to pilot primary care clinic models of care delivery focused on care 
437.19 	coordination and family involvement in order to:
437.20 	(1) incent and support the provision of cost-effective primary and preventive care;
437.21 	(2) reward the use of evidence-based care;
437.22 	(3) reward coordination of care for patients with chronic conditions;
437.23 	(4) discourage overuse and misuse of high cost services;
437.24 	(5) reward the use of the most cost-effective settings, drugs, devices, providers, 
437.25 	and treatments; and
437.26 	(6) encourage consumers to maintain good health and use the health care system 
437.27 	appropriately.
437.28 	(b) The pilot projects must involve the use of designated care professionals or 
437.29 	clinics to serve as a patient's medical home and be responsible for coordinating health 
437.30 	care services across the continuum of care. 
437.31 		Subd. 2.Requirements. In order to be designated a pilot project, health care 
437.32 	professionals or clinics must demonstrate the ability to:
437.33 	(1) be the patient's first point of contact by telephone or other means, 24 hours per 
437.34 	day, seven days a week;
438.1 	(2) provide or arrange for patients' comprehensive health care needs, including the 
438.2 	ability to structure planned chronic disease visits and train and support the caregivers to 
438.3 	effectively monitor and manage the person's health condition;
438.4 	(3) coordinate patients' care when care must be provided outside the medical home;
438.5 	(4) provide longitudinal care, not just episodic care, including meeting long-term 
438.6 	and unique personal needs; and
438.7 	(5) systematically improve quality of care using, among other inputs, patient 
438.8 	feedback.
438.9 		Subd. 3.Evaluation. Pilot projects must be evaluated based on patient satisfaction, 
438.10 	provider satisfaction, clinical process and outcome measures, program costs and savings, 
438.11 	and economic impact on health care providers. Pilot projects must be evaluated based 
438.12 	on the extent to which the medical home:
438.13 	(1) coordinated health care services across the continuum of care and thereby 
438.14 	reduced duplication of services and enhanced communication across providers;
438.15 	(2) provided safe and high-quality care by increasing utilization of effective 
438.16 	treatments, reduced use of ineffective treatments, reduced barriers to essential care and 
438.17 	services, and eliminated barriers to access;
438.18 	(3) reduced unnecessary hospitalizations and emergency room visits and increased 
438.19 	use of cost-effective care and settings;
438.20 	(4) encouraged long-term patient and provider relationships by shifting from 
438.21 	episodic care to consistent, coordinated communication and care with a specified team of 
438.22 	providers or individual providers;
438.23 	(5) engaged and educated consumers by encouraging shared patient and provider 
438.24 	responsibility and accountability for disease prevention, health promotion, chronic 
438.25 	disease management, acute care, and overall well-being, encouraging informed medical 
438.26 	decision-making, ensuring the availability of accurate medical information, and facilitated 
438.27 	the transfer of accurate medical information;
438.28 	(6) fostered the expansion of a technology infrastructure that supports collaboration; 
438.29 	and
438.30 	(7) reduced overall health care costs as compared to conventional payment methods 
438.31 	for similar patient populations.
438.32 		Subd. 4.Rulemaking. The commissioner is exempt from administrative rulemaking 
438.33 	under chapter 14 for purposes of developing, administering, contracting for, and evaluating 
438.34 	pilot projects under this section. The commissioner shall publish a proposed request for 
438.35 	proposals in the State Register and allow 30 days for comment before issuing the final 
438.36 	request for proposals.
439.1 		Subd. 5.Care coordination payments. Grantees under this section are not eligible 
439.2 	for care coordination payments under Minnesota Statutes, section 256B.0625, subdivision 
439.3 	49.

439.4 	Sec. 25. MERC DISTRIBUTION FORMULA.
 439.5 	The commissioner of health shall evaluate the effect of the 2007 revisions to the 
439.6 	medical education and research costs (MERC) distribution formula adopted in this act 
439.7 	on sponsoring institutions and clinical training sites with low numbers of eligible trainee 
439.8 	full-time employees. The commissioner shall present to the legislature, by January 15, 
439.9 	2008, any recommendations for changes in the MERC distribution formula necessary to 
439.10 	ensure the financial viability of clinical medical education at these sponsoring institutions 
439.11 	and clinical training sites.

439.12 	Sec. 26.  REPEALER.
 439.13 	(a) Minnesota Statutes 2006, section 62J.052, subdivision 1, is repealed effective 
439.14 	August 1, 2007.
439.15 	(b) Minnesota Statutes 2006, section 62J.692, subdivision 10, is repealed effective 
439.16 	January 1, 2008.

439.17 	ARTICLE 16
439.18 	PUBLIC HEALTH POLICY

439.19 	Section 1. Minnesota Statutes 2006, section 16B.61, is amended by adding a 
439.20 	subdivision to read:
439.21 		Subd. 3b.Window fall prevention device code. The commissioner of labor and 
439.22 	industry shall adopt rules for window fall prevention devices as part of the state Building 
439.23 	Code. Window fall prevention devices include, but are not limited to, safety screens, 
439.24 	hardware, guards, and other devices that comply with the standards established by the 
439.25 	commissioner of labor and industry. The rules shall require compliance with standards 
439.26 	for window fall prevention devices developed by ASTM International, contained in the 
439.27 	International Building Code as the model language with amendments deemed necessary to 
439.28 	coordinate with the other adopted building codes in Minnesota. The rules shall establish a 
439.29 	scope that includes the applicable building occupancies, and the types, locations, and sizes 
439.30 	of windows that will require the installation of fall devices. The rules will be effective July 
439.31 	1, 2009. The commissioner shall report to the legislature on the status of the rulemaking 
439.32 	on or before February 15, 2008.

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

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

440.6 	Sec. 3. Minnesota Statutes 2006, section 103I.208, subdivision 1, is amended to read:
440.7 		Subdivision 1.Well notification fee. The well notification fee to be paid by a 
440.8 	property owner is:
440.9 	(1) for a new water supply well, $175 $215, which includes the state core function 
440.10 	fee;
440.11 	(2) for a well sealing, $35 $50 for each well, which includes the state core function 
440.12 	fee, except that for monitoring wells constructed on a single property, having depths 
440.13 	within a 25 foot range, and sealed within 48 hours of start of construction, a single fee of 
440.14 	$35 $50; and
440.15 	(3) for construction of a dewatering well, $175 $215, which includes the state core 
440.16 	function fee, for each dewatering well except a dewatering project comprising five or 
440.17 	more dewatering wells shall be assessed a single fee of $875 $1,075 for the dewatering 
440.18 	wells recorded on the notification.

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

440.20 	Sec. 4. Minnesota Statutes 2006, section 103I.208, subdivision 2, is amended to read:
440.21 		Subd. 2.Permit fee. The permit fee to be paid by a property owner is:
440.22 	(1) for a water supply well that is not in use under a maintenance permit, $150 $175
440.23 	annually;
440.24 	(2) for construction of a monitoring well, $175 $215, which includes the state 
440.25 	core function fee;
440.26 	(3) for a monitoring well that is unsealed under a maintenance permit, $150 $175
440.27 	annually;
440.28 	(4) for monitoring wells used as a leak detection device at a single motor fuel retail 
440.29 	outlet, a single petroleum bulk storage site excluding tank farms, or a single agricultural 
440.30 	chemical facility site, the construction permit fee is $175 $215, which includes the state 
440.31 	core function fee, per site regardless of the number of wells constructed on the site, and 
440.32 	the annual fee for a maintenance permit for unsealed monitoring wells is $150 $175 per 
440.33 	site regardless of the number of monitoring wells located on site;
441.1 	(5) for a groundwater thermal exchange device, in addition to the notification fee for 
441.2 	water supply wells, $175 $215, which includes the state core function fee;
441.3 	(6) for a vertical heat exchanger, $175 $215;
441.4 	(7) for a dewatering well that is unsealed under a maintenance permit, $150 $175
441.5 	annually for each dewatering well, except a dewatering project comprising more than five 
441.6 	dewatering wells shall be issued a single permit for $750 $875 annually for dewatering 
441.7 	wells recorded on the permit; and
441.8 	(8) for an elevator boring, $175 $215 for each boring.

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

441.10 	Sec. 5. Minnesota Statutes 2006, section 103I.235, subdivision 1, is amended to read:
441.11 		Subdivision 1.Disclosure of wells to buyer. (a) Before signing an agreement to 
441.12 	sell or transfer real property, the seller must disclose in writing to the buyer information 
441.13 	about the status and location of all known wells on the property, by delivering to the buyer 
441.14 	either a statement by the seller that the seller does not know of any wells on the property, 
441.15 	or a disclosure statement indicating the legal description and county, and a map drawn 
441.16 	from available information showing the location of each well to the extent practicable. 
441.17 	In the disclosure statement, the seller must indicate, for each well, whether the well is in 
441.18 	use, not in use, or sealed.
441.19 	(b) At the time of closing of the sale, the disclosure statement information, name and 
441.20 	mailing address of the buyer, and the quartile, section, township, and range in which each 
441.21 	well is located must be provided on a well disclosure certificate signed by the seller or a 
441.22 	person authorized to act on behalf of the seller.
441.23 	(c) A well disclosure certificate need not be provided if the seller does not know 
441.24 	of any wells on the property and the deed or other instrument of conveyance contains 
441.25 	the statement: "The Seller certifies that the Seller does not know of any wells on the 
441.26 	described real property."
441.27 	(d) If a deed is given pursuant to a contract for deed, the well disclosure certificate 
441.28 	required by this subdivision shall be signed by the buyer or a person authorized to act on 
441.29 	behalf of the buyer. If the buyer knows of no wells on the property, a well disclosure 
441.30 	certificate is not required if the following statement appears on the deed followed by the 
441.31 	signature of the grantee or, if there is more than one grantee, the signature of at least one 
441.32 	of the grantees: "The Grantee certifies that the Grantee does not know of any wells on the 
441.33 	described real property." The statement and signature of the grantee may be on the front 
441.34 	or back of the deed or on an attached sheet and an acknowledgment of the statement by 
441.35 	the grantee is not required for the deed to be recordable.
442.1 	(e) This subdivision does not apply to the sale, exchange, or transfer of real property:
442.2 	(1) that consists solely of a sale or transfer of severed mineral interests; or
442.3 	(2) that consists of an individual condominium unit as described in chapters 515 
442.4 	and 515B.
442.5 	(f) For an area owned in common under chapter 515 or 515B the association or other 
442.6 	responsible person must report to the commissioner by July 1, 1992, the location and 
442.7 	status of all wells in the common area. The association or other responsible person must 
442.8 	notify the commissioner within 30 days of any change in the reported status of wells.
442.9 	(g) For real property sold by the state under section 92.67, the lessee at the time of 
442.10 	the sale is responsible for compliance with this subdivision.
442.11 	(h) If the seller fails to provide a required well disclosure certificate, the buyer, or 
442.12 	a person authorized to act on behalf of the buyer, may sign a well disclosure certificate 
442.13 	based on the information provided on the disclosure statement required by this section 
442.14 	or based on other available information.
442.15 	(i) A county recorder or registrar of titles may not record a deed or other instrument 
442.16 	of conveyance dated after October 31, 1990, for which a certificate of value is required 
442.17 	under section 272.115, or any deed or other instrument of conveyance dated after October 
442.18 	31, 1990, from a governmental body exempt from the payment of state deed tax, unless 
442.19 	the deed or other instrument of conveyance contains the statement made in accordance 
442.20 	with paragraph (c) or (d) or is accompanied by the well disclosure certificate containing all 
442.21 	the information required by paragraph (b) or (d). The county recorder or registrar of titles 
442.22 	must not accept a certificate unless it contains all the required information. The county 
442.23 	recorder or registrar of titles shall note on each deed or other instrument of conveyance 
442.24 	accompanied by a well disclosure certificate that the well disclosure certificate was 
442.25 	received. The notation must include the statement "No wells on property" if the disclosure 
442.26 	certificate states there are no wells on the property. The well disclosure certificate shall not 
442.27 	be filed or recorded in the records maintained by the county recorder or registrar of titles. 
442.28 	After noting "No wells on property" on the deed or other instrument of conveyance, the 
442.29 	county recorder or registrar of titles shall destroy or return to the buyer the well disclosure 
442.30 	certificate. The county recorder or registrar of titles shall collect from the buyer or the 
442.31 	person seeking to record a deed or other instrument of conveyance, a fee of $40 $45
442.32 	for receipt of a completed well disclosure certificate. By the tenth day of each month, 
442.33 	the county recorder or registrar of titles shall transmit the well disclosure certificates 
442.34 	to the commissioner of health. By the tenth day after the end of each calendar quarter, 
442.35 	the county recorder or registrar of titles shall transmit to the commissioner of health 
442.36 	$32.50 $37.50 of the fee for each well disclosure certificate received during the quarter. 
443.1 	The commissioner shall maintain the well disclosure certificate for at least six years. The 
443.2 	commissioner may store the certificate as an electronic image. A copy of that image 
443.3 	shall be as valid as the original.
443.4 	(j) No new well disclosure certificate is required under this subdivision if the buyer 
443.5 	or seller, or a person authorized to act on behalf of the buyer or seller, certifies on the deed 
443.6 	or other instrument of conveyance that the status and number of wells on the property 
443.7 	have not changed since the last previously filed well disclosure certificate. The following 
443.8 	statement, if followed by the signature of the person making the statement, is sufficient 
443.9 	to comply with the certification requirement of this paragraph: "I am familiar with the 
443.10 	property described in this instrument and I certify that the status and number of wells on 
443.11 	the described real property have not changed since the last previously filed well disclosure 
443.12 	certificate." The certification and signature may be on the front or back of the deed or on 
443.13 	an attached sheet and an acknowledgment of the statement is not required for the deed or 
443.14 	other instrument of conveyance to be recordable.
443.15 	(k) The commissioner in consultation with county recorders shall prescribe the form 
443.16 	for a well disclosure certificate and provide well disclosure certificate forms to county 
443.17 	recorders and registrars of titles and other interested persons.
443.18 	(l) Failure to comply with a requirement of this subdivision does not impair:
443.19 	(1) the validity of a deed or other instrument of conveyance as between the parties 
443.20 	to the deed or instrument or as to any other person who otherwise would be bound by 
443.21 	the deed or instrument; or
443.22 	(2) the record, as notice, of any deed or other instrument of conveyance accepted for 
443.23 	filing or recording contrary to the provisions of this subdivision.

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

443.25 	Sec. 6. Minnesota Statutes 2006, section 144.123, is amended to read:
443.26 	144.123 FEES FOR DIAGNOSTIC LABORATORY SERVICES; 
443.27 	EXCEPTIONS.
443.28 		Subdivision 1.Who must pay. Except for the limitation contained in this section, 
443.29 	the commissioner of health shall charge a handling fee for each specimen submitted to 
443.30 	the Department of Health for analysis for diagnostic purposes by any hospital, private 
443.31 	laboratory, private clinic, or physician. No fee shall be charged to any entity which 
443.32 	receives direct or indirect financial assistance from state or federal funds administered by 
443.33 	the Department of Health, including any public health department, nonprofit community 
443.34 	clinic, venereal sexually transmitted disease clinic, family planning clinic, or similar 
444.1 	entity. No fee will be charged for any biological materials submitted to the Department 
444.2 	of Health as a requirement of Minnesota Rules, part 4605.7040, or for those biological 
444.3 	materials requested by the department to gather information for disease prevention or 
444.4 	control purposes. The commissioner of health may establish by rule other exceptions to 
444.5 	the handling fee as may be necessary to gather information for epidemiologic purposes
444.6 	protect the public's health. All fees collected pursuant to this section shall be deposited in 
444.7 	the state treasury and credited to the state government special revenue fund.
444.8 		Subd. 2.Rules for Fee amounts. The commissioner of health shall promulgate 
444.9 	rules, in accordance with chapter 14, which shall specify the amount of the charge a
444.10 	handling fee prescribed in subdivision 1. The fee shall approximate the costs to the 
444.11 	department of handling specimens including reporting, postage, specimen kit preparation, 
444.12 	and overhead costs. The fee prescribed in subdivision 1 shall be $15 $25 per specimen 
444.13 	until the commissioner promulgates rules pursuant to this subdivision.

444.14 	Sec. 7. Minnesota Statutes 2006, section 144.125, is amended to read:
444.15 	144.125 TESTS OF INFANTS FOR HERITABLE AND CONGENITAL 
444.16 	DISORDERS.
444.17 		Subdivision 1.Duty to perform testing. It is the duty of (1) the administrative 
444.18 	officer or other person in charge of each institution caring for infants 28 days or less 
444.19 	of age, (2) the person required in pursuance of the provisions of section 144.215, to 
444.20 	register the birth of a child, or (3) the nurse midwife or midwife in attendance at the 
444.21 	birth, to arrange to have administered to every infant or child in its care tests for heritable 
444.22 	and congenital disorders according to subdivision 2 and rules prescribed by the state 
444.23 	commissioner of health. Testing and the recording and reporting of test results shall be 
444.24 	performed at the times and in the manner prescribed by the commissioner of health. The 
444.25 	commissioner shall charge laboratory service fees a fee so that the total of fees collected 
444.26 	will approximate the costs of conducting the tests and implementing and maintaining a 
444.27 	system to follow-up infants with heritable or congenital disorders, including hearing loss 
444.28 	detected through the early hearing detection and intervention program under section 
444.29 	144.966. The laboratory service fee is $61 $101 per specimen. Costs associated with 
444.30 	capital expenditures and the development of new procedures may be prorated over a 
444.31 	three-year period when calculating the amount of the fees. 
444.32 		Subd. 2.Determination of tests to be administered. The commissioner shall 
444.33 	periodically revise the list of tests to be administered for determining the presence of a 
444.34 	heritable or congenital disorder. Revisions to the list shall reflect advances in medical 
444.35 	science, new and improved testing methods, or other factors that will improve the public 
445.1 	health. In determining whether a test must be administered, the commissioner shall take 
445.2 	into consideration the adequacy of laboratory analytical methods to detect the heritable 
445.3 	or congenital disorder, the ability to treat or prevent medical conditions caused by the 
445.4 	heritable or congenital disorder, and the severity of the medical conditions caused by the 
445.5 	heritable or congenital disorder. The list of tests to be performed may be revised if the 
445.6 	changes are recommended by the advisory committee established under section 144.1255, 
445.7 	approved by the commissioner, and published in the State Register. The revision is 
445.8 	exempt from the rulemaking requirements in chapter 14, and sections 14.385 and 14.386
445.9 	do not apply. 
445.10 		Subd. 3.Objection of parents to test. Persons with a duty to perform testing under 
445.11 	subdivision 1 shall advise parents of infants (1) that the blood or tissue samples used to 
445.12 	perform testing thereunder as well as the results of such testing may be retained by the 
445.13 	Department of Health, (2) the benefit of retaining the blood or tissue sample, and (3) that 
445.14 	the following options are available to them with respect to the testing: (i) to decline to 
445.15 	have the tests, or (ii) to elect to have the tests but to require that all blood samples and 
445.16 	records of test results be destroyed within 24 months of the testing. If the parents of 
445.17 	an infant object in writing to testing for heritable and congenital disorders or elect to 
445.18 	require that blood samples and test results be destroyed, the objection or election shall 
445.19 	be recorded on a form that is signed by a parent or legal guardian and made part of the 
445.20 	infant's medical record. A written objection exempts an infant from the requirements of 
445.21 	this section and section 144.128. 

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

445.27 	Sec. 9. Minnesota Statutes 2006, section 144.9512, is amended to read:
445.28 	144.9512 LEAD ABATEMENT PROGRAM.
445.29 		Subdivision 1.Definitions. (a) The definitions in section 144.9501 and in this 
445.30 	subdivision apply to this section.
445.31 	(b) "Eligible organization" means a lead contractor, city, board of health, community 
445.32 	health department, community action agency as defined in section 256E.30, or community 
445.33 	development corporation.
446.1 	(c) "Commissioner" means the commissioner of health, or the commissioner of the 
446.2 	Minnesota Housing Finance Agency as authorized by section 462A.05, subdivision 15c.
446.3 		Subd. 2.Grants; administration. Within the limits of the available appropriation, 
446.4 	the commissioner must develop a swab team services program which may shall make 
446.5 	demonstration and training grants to eligible organizationsa nonprofit organization 
446.6 	currently operating the CLEARCorps lead hazard reduction project to train workers to 
446.7 	provide swab team services and swab team services for residential property. Grants may 
446.8 	be awarded to nonprofit organizations to provide technical assistance and training to 
446.9 	ensure quality and consistency within the statewide program. Grants must be awarded to 
446.10 	help ensure full-time employment to workers providing swab team services and must be 
446.11 	awarded for a two-year period.
446.12 	Grants awarded under this section must be made in consultation with the 
446.13 	commissioner of the Housing Finance Agency and representatives of neighborhood 
446.14 	groups from areas at high risk for toxic lead exposure, a labor organization, the lead 
446.15 	coalition, community action agencies, and the legal aid society. The consulting team must 
446.16 	review grant applications and recommend awards to eligible organizations that meet 
446.17 	requirements for receiving a grant under this section.
446.18 		Subd. 3.Applicants. (a) Interested eligible organizations may apply to the 
446.19 	commissioner for grants under this section. Two or more eligible organizations may 
446.20 	jointly apply for a grant. Priority shall be given to community action agencies in greater 
446.21 	Minnesota and to either community action agencies or neighborhood based nonprofit 
446.22 	organizations in cities of the first class. Of the total annual appropriation, 12.5 percent may 
446.23 	be used for administrative purposes. The commissioner may deviate from this percentage 
446.24 	if a grantee can justify the need for a larger administrative allowance. Of this amount, 
446.25 	up to five percent may be used by the commissioner for state administrative purposes. 
446.26 	Applications must provide information requested by the commissioner, including at least 
446.27 	the information required to assess the factors listed in paragraph (d).
446.28 	(b) The commissioner must consult with boards of health to provide swab team 
446.29 	services for purposes of secondary prevention. The priority for swab teams created 
446.30 	by grants to eligible organizations under this section must be work assigned by the 
446.31 	commissioner of health, or by a board of health if so designated by the commissioner of 
446.32 	health, to provide secondary prevention swab team services to fulfill the requirements 
446.33 	of section 144.9504, subdivision 6, in response to a lead order. Swab teams assigned 
446.34 	work under this section by the commissioner, that are not engaged daily in fulfilling the 
446.35 	requirements of section 144.9504, subdivision 6, must deliver swab team services in 
446.36 	response to elevated blood lead levels as defined in section 144.9501, subdivision 9, 
447.1 	where lead orders were not issued, and for purposes of primary prevention in census 
447.2 	tracts known to be in areas at high risk for toxic lead exposure as described in section 
447.3 	144.9503, subdivision 2.
447.4 	(c) Any additional money must be used for grants to establish swab teams for 
447.5 	primary prevention under section 144.9503, in census tracts in areas at high risk for toxic 
447.6 	lead exposure as determined under section 144.9503, subdivision 2.
447.7 	(d) In evaluating grant applications, the commissioner must consider the following 
447.8 	criteria:
447.9 	(1) the use of lead contractors and lead workers for residential swab team services;
447.10 	(2) the participation of neighborhood groups and individuals, as swab team workers, 
447.11 	in areas at high risk for toxic lead exposure;
447.12 	(3) plans for the provision of swab team services for primary and secondary 
447.13 	prevention as required under subdivision 4;
447.14 	(4) plans for supervision, training, career development, and postprogram placement 
447.15 	of swab team members;
447.16 	(5) plans for resident and property owner education on lead safety;
447.17 	(6) plans for distributing cleaning supplies to area residents and educating residents 
447.18 	and property owners on cleaning techniques;
447.19 	(7) sources of other funding and cost estimates for training, lead inspections, swab 
447.20 	team services, equipment, monitoring, testing, and administration;
447.21 	(8) measures of program effectiveness;
447.22 	(9) coordination of program activities with other federal, state, and local public 
447.23 	health, job training, apprenticeship, and housing renovation programs including programs 
447.24 	under sections 116L.86 to 116L.881; and
447.25 	(10) prior experience in providing swab team services.
447.26 		Subd. 4.Lead supervisor or certified firm Eligible grant activities. (a) Eligible 
447.27 	organizations and lead supervisors or certified firms may participate in the swab team 
447.28 	program. An eligible organization The nonprofit receiving a grant under this section 
447.29 	must assure ensure that all participating lead supervisors or certified firms are licensed 
447.30 	and that all swab team workers are certified by the Department of Health under section 
447.31 	144.9505. Eligible organizations and lead supervisors or certified firms may distinguish 
447.32 	between interior and exterior services in assigning duties and The nonprofit organization
447.33 	may participate in the program by: 
447.34 	(1) providing on-the-job training for swab team workers;
447.35 	(2) providing swab team services to meet the requirements of sections 144.9503, 
447.36 	subdivision 4, and 144.9504, subdivision 6; 
448.1 	(3) providing a removal and replacement component using skilled craft workers 
448.2 	under subdivision 7 lead hazard reduction to meet the requirements of section 144.9501, 
448.3 	subdivision 17;
448.4 	(4) providing lead testing according to subdivision 8;
448.5 	(5) (4) providing lead dust cleaning supplies cleanup equipment and materials, as 
448.6 	described in section 144.9507 144.9503, subdivision 4, paragraph (c) 1, to residents; or
448.7 	(6) (5) having a swab team worker instruct residents and property owners on 
448.8 	appropriate lead control techniques, including the lead-safe directives developed by the 
448.9 	commissioner of health.;
448.10 	(6) conducting blood lead testing events including screening children and pregnant 
448.11 	women according to Department of Health screening guidelines;
448.12 	(7) performing case management services according to Department of Health case 
448.13 	management guidelines; or
448.14 	(8) conducting mandated risk assessments under Minnesota Statutes, section 
448.15 	144.9504, subdivision 2.
448.16 	(b) Participating lead supervisors or certified firms must:
448.17 	(1) demonstrate proof of workers' compensation and general liability insurance 
448.18 	coverage;
448.19 	(2) be knowledgeable about lead abatement requirements established by the 
448.20 	Department of Housing and Urban Development and the Occupational Safety and Health 
448.21 	Administration and lead hazard reduction requirements and lead-safe directives of the 
448.22 	commissioner of health;
448.23 	(3) demonstrate experience with on-the-job training programs;
448.24 	(4) demonstrate an ability to recruit employees from areas at high risk for toxic 
448.25 	lead exposure; and
448.26 	(5) demonstrate experience in working with low-income clients.
448.27 		Subd. 5.Swab team workers. Each worker engaged in swab team services 
448.28 	established under this section must have blood lead concentrations below 15 micrograms 
448.29 	of lead per deciliter of whole blood as determined by a baseline blood lead screening. 
448.30 	Any The nonprofit organization receiving a grant under this section is responsible for lead 
448.31 	screening and must assure ensure that all swab team workers meet the standards established 
448.32 	in this subdivision. Grantees The nonprofit organization must use appropriate workplace 
448.33 	procedures including following the lead-safe directives developed by the commissioner of 
448.34 	health to reduce risk of elevated blood lead levels. Grantees The nonprofit organization
448.35 	and participating contractors must report all employee blood lead levels that exceed 15 
448.36 	micrograms of lead per deciliter of whole blood to the commissioner of health.
449.1 		Subd. 6.On-the-job training component. (a) Programs established under this 
449.2 	section must provide on-the-job training for swab team workers.
449.3 	(b) Swab team workers must receive monetary compensation equal to the prevailing 
449.4 	wage as defined in section 177.42, subdivision 6, for comparable jobs in the licensed 
449.5 	contractor's principal business. 
449.6 		Subd. 7.Removal and replacement component. (a) Within the limits of the 
449.7 	available appropriation and if a need is identified by a lead inspector, the commissioner 
449.8 	may establish a component for removal and replacement of deteriorated paint in residential 
449.9 	properties according to the following criteria:
449.10 	(1) components within a residence must have both deteriorated lead-based paint and 
449.11 	substrate damage beyond repair or rotting wooden framework to be eligible for removal 
449.12 	and replacement;
449.13 	(2) all removal and replacement must be done using least-cost methods and 
449.14 	following lead-safe directives;
449.15 	(3) whenever windows and doors or other components covered with deteriorated 
449.16 	lead-based paint have sound substrate or are not rotting, those components should be 
449.17 	repaired, sent out for stripping, planed down to remove deteriorated lead-based paint, or 
449.18 	covered with protective guards instead of being replaced, provided that such an activity is 
449.19 	the least-cost method of providing the swab team service;
449.20 	(4) removal and replacement or repair must be done by lead contractors using skilled 
449.21 	craft workers or trained swab team members; and
449.22 	(5) all craft work that requires a state license must be supervised by a person with 
449.23 	a state license in the craft work being supervised. The grant recipient may contract for 
449.24 	this supervision.
449.25 	(b) The program design must:
449.26 	(1) identify the need for on-the-job training of swab team workers to be removal and 
449.27 	replacement workers; and
449.28 	(2) describe plans to involve appropriate groups in designing methods to meet the 
449.29 	need for training swab team workers.
449.30 		Subd. 8.Testing and evaluation. (a) Testing of the environment is not necessary 
449.31 	by swab teams whose work is assigned by the commissioner of health or a designated 
449.32 	board of health under section 144.9504. The commissioner of health or designated board 
449.33 	of health must share the analytical testing data collected on each residence for purposes 
449.34 	of secondary prevention under section 144.9504 with the swab team workers in order to 
449.35 	provide constructive feedback on their work and to the commissioner for the purposes 
449.36 	set forth in paragraph (c).
450.1 	(b) For purposes of primary prevention evaluation, the following samples must be 
450.2 	collected: pretesting and posttesting of one noncarpeted floor dust lead sample and a 
450.3 	notation of the extent and location of bare soil and of deteriorated lead-based paint. The 
450.4 	analytical testing data collected on each residence for purposes of primary prevention 
450.5 	under section 144.9503 must be shared with the swab team workers in order to provide 
450.6 	constructive feedback on their work and to the commissioner for the purposes set forth in 
450.7 	paragraph (c).
450.8 	(c) The commissioner of health must establish a program to collect appropriate data 
450.9 	as required under paragraphs (a) and (b), in order to conduct an ongoing evaluation of 
450.10 	swab team services for primary and secondary prevention. Within the limits of available 
450.11 	appropriations, the commissioner of health must conduct on up to 1,000 residences which 
450.12 	have received primary or secondary prevention swab team services, a postremediation 
450.13 	evaluation, on at least a quarterly basis for a period of at least two years for each residence. 
450.14 	The evaluation must note the condition of the paint within the residence, the extent of bare 
450.15 	soil on the grounds, and collect and analyze one noncarpeted floor dust lead sample. 
450.16 	The data collected must be evaluated to determine the efficacy of providing swab team 
450.17 	services as a method of reducing lead exposure in young children. In evaluating this data, 
450.18 	the commissioner of health must consider city size, community location, historic traffic 
450.19 	flow, soil lead level of the property by area or census tract, distance to industrial point 
450.20 	sources that emit lead, season of the year, age of the housing, age and number of children 
450.21 	living at the residence, the presence of pets that move in and out of the residence, and 
450.22 	other relevant factors as the commissioner of health may determine.
450.23 		Subd. 9.Program benefits. As a condition of providing swab team services under 
450.24 	this section, an the nonprofit organization may require a property owner to not increase 
450.25 	rents on a property solely as a result of a substantial improvement made with public 
450.26 	funds under the programs in this section.
450.27 		Subd. 10.Requirements of organizations receiving grants the nonprofit 
450.28 	organization. An eligible The nonprofit organization that is awarded a training and 
450.29 	demonstration grant under this section must prepare and submit a quarterly progress report 
450.30 	to the commissioner beginning three months after receipt of the grant.

450.31 	Sec. 10. [144.966] EARLY HEARING DETECTION AND INTERVENTION 
450.32 	PROGRAM.
450.33 		Subdivision 1.Definitions. (a) "Child" means a person 18 years of age or younger.
451.1 	(b) "False positive rate" means the proportion of infants identified as having a 
451.2 	significant hearing loss by the screening process who are ultimately found to not have a 
451.3 	significant hearing loss.
451.4 	(c) "False negative rate" means the proportion of infants not identified as having 
451.5 	a significant hearing loss by the screening process who are ultimately found to have a 
451.6 	significant hearing loss.
451.7 	(d) "Hearing screening test" means automated auditory brain stem response, 
451.8 	otoacoustic emissions, or another appropriate screening test approved by the Department 
451.9 	of Health.
451.10 	(e) "Hospital" means a birthing health care facility or birthing center licensed in 
451.11 	this state that provides obstetrical services.
451.12 	(f) "Infant" means a child who is not a newborn and has not attained the age of 
451.13 	one year.
451.14 	(g) "Newborn" means an infant 28 days of age or younger.
451.15 	(h) "Parent" means a natural parent, stepparent, adoptive parent, guardian, or 
451.16 	custodian of a newborn or infant.
451.17 		Subd. 2.Newborn Hearing Screening Advisory Committee. (a) The 
451.18 	commissioner of health shall establish a Newborn Hearing Screening Advisory Committee 
451.19 	to advise and assist the Department of Health and the Department of Education in:
451.20 	(1) developing protocols and timelines for screening, rescreening, and diagnostic 
451.21 	audiological assessment and early medical, audiological, and educational intervention 
451.22 	services for children who are deaf or hard-of-hearing;
451.23 	(2) designing protocols for tracking children from birth through age three that may 
451.24 	have passed newborn screening but are at risk for delayed or late onset of permanent 
451.25 	hearing loss;
451.26 	(3) designing a technical assistance program to support facilities implementing the 
451.27 	screening program and facilities conducting rescreening and diagnostic audiological 
451.28 	assessment;
451.29 	(4) designing implementation and evaluation of a system of follow-up and tracking; 
451.30 	and
451.31 	(5) evaluating program outcomes to increase effectiveness and efficiency and ensure 
451.32 	culturally appropriate services for children with a confirmed hearing loss and their families.
451.33 	(b) The commissioner of health shall appoint at least one member from each of the 
451.34 	following groups with no less than two of the members being deaf or hard-of-hearing:
451.35 	(1) a representative from a consumer organization representing culturally deaf 
451.36 	persons;
452.1 	(2) a parent with a child with hearing loss representing a parent organization;
452.2 	(3) a consumer from an organization representing oral communication options;
452.3 	(4) a consumer from an organization representing cued speech communication 
452.4 	options;
452.5 	(5) an audiologist who has experience in evaluation and intervention of infants 
452.6 	and young children;
452.7 	(6) a speech-language pathologist who has experience in evaluation and intervention 
452.8 	of infants and young children;
452.9 	(7) two primary care providers who have experience in the care of infants and young 
452.10 	children, one of which shall be a pediatrician;
452.11 	(8) a representative from the early hearing detection intervention teams;
452.12 	(9) a representative from the Department of Education resource center for the deaf 
452.13 	and hard-of-hearing or the representative's designee;
452.14 	(10) a representative of the Minnesota Commission Serving Deaf and Hard of 
452.15 	Hearing People;
452.16 	(11) a representative from the Department of Human Services Deaf and Hard of 
452.17 	Hearing Services Division;
452.18 	(12) one or more of the Part C coordinators from the Department of Education, 
452.19 	the Department of Health, or the Department of Human Services or the department's 
452.20 	designees;
452.21 	(13) the Department of Health early hearing detection and intervention coordinator;
452.22 	(14) two birth hospital representatives from one rural and one urban hospital;
452.23 	(15) a pediatric geneticist;
452.24 	(16) an otolaryngologist;
452.25 	(17) a representative from the Newborn Screening Advisory Committee under 
452.26 	this subdivision; and
452.27 	(18) a representative of the Department of Education regional low-incidence 
452.28 	facilitators.
452.29 	The commissioner must complete the appointments required under this subdivision by 
452.30 	September 1, 2007.
452.31 	(c) The Department of Health member shall chair the first meeting of the committee. 
452.32 	At the first meeting, the committee shall elect a chair from its membership. The committee 
452.33 	shall meet at the call of the chair, at least four times a year. The committee shall adopt 
452.34 	written bylaws to govern its activities. The Department of Health shall provide technical 
452.35 	and administrative support services as required by the committee. These services shall 
453.1 	include technical support from individuals qualified to administer infant hearing screening, 
453.2 	rescreening, and diagnostic audiological assessments.
453.3 	Members of the committee shall receive no compensation for their service, but 
453.4 	shall be reimbursed as provided in section 15.059 for expenses incurred as a result of 
453.5 	their duties as members of the committee.
453.6 	(d) This subdivision expires June 30, 2013.
453.7 		Subd. 3.Early hearing detection and intervention programs.  All hospitals 
453.8 	shall establish an early hearing detection and intervention (EHDI) program. Each EHDI 
453.9 	program shall:
453.10 	(1) in advance of any hearing screening testing, provide to the newborn's or infant's 
453.11 	parents or parent information concerning the nature of the screening procedure, applicable 
453.12 	costs of the screening procedure, the potential risks and effects of hearing loss, and the 
453.13 	benefits of early detection and intervention;
453.14 	(2) comply with parental consent under section 144.125, subdivision 3;
453.15 	(3) develop policies and procedures for screening and rescreening based on 
453.16 	Department of Health recommendations;
453.17 	(4) provide appropriate training and monitoring of individuals responsible for 
453.18 	performing hearing screening tests as recommended by the Department of Health;
453.19 	(5) test the newborn's hearing prior to discharge, or, if the newborn is expected to 
453.20 	remain in the hospital for a prolonged period, testing shall be performed prior to three 
453.21 	months of age or when medically feasible;
453.22 	(6) develop and implement procedures for documenting the results of all hearing 
453.23 	screening tests;
453.24 	(7) inform the newborn's or infant's parents or parent, primary care physician, and 
453.25 	the Department of Health according to recommendations of the Department of Health of 
453.26 	the results of the hearing screening test or rescreening if conducted, or if the newborn or 
453.27 	infant was not successfully tested. The hospital that discharges the newborn or infant to 
453.28 	home is responsible for the screening; and
453.29 	(8) collect performance data specified by the Department of Health. 
453.30 		Subd. 4.Notification and information. (a) Notification to the parents or parent, 
453.31 	primary care provider, and the Department of Health shall occur prior to discharge or no 
453.32 	later than ten days following the date of testing. Notification shall include information 
453.33 	recommended by the Department of Health.
453.34 	(b) A physician, nurse, midwife, or other health professional attending a birth outside 
453.35 	a hospital or institution shall provide information, orally and in writing, as established by 
454.1 	the Department of Health, to parents regarding places where the parents may have their 
454.2 	infant's hearing screened and the importance of the screening.
454.3 	(c) The professional conducting the diagnostic procedure to confirm the hearing loss 
454.4 	must report the results to the parents, primary care provider, and Department of Health 
454.5 	according to the Department of Health recommendations.
454.6 		Subd. 5.Oversight responsibility. The Department of Health shall exercise 
454.7 	oversight responsibility for EHDI programs, including establishing a performance data set 
454.8 	and reviewing performance data collected by each hospital.
454.9 		Subd. 6.Civil and criminal immunity and penalties. (a) No physician or hospital 
454.10 	shall be civilly or criminally liable for failure to conduct hearing screening testing.
454.11 	(b) No physician, midwife, nurse, other health professional, or hospital acting in 
454.12 	compliance with this section shall be civilly or criminally liable for any acts conforming 
454.13 	with this section, including furnishing information required according to this section.
454.14 		Subd. 7.Fees. The commissioner shall charge  a fee so that the total of fees 
454.15 	collected will approximate the costs of implementing and maintaining a system to follow 
454.16 	up on infants and provide technical assistance, a tracking system, data management, and 
454.17 	evaluation. The  fee shall be incorporated in the fee charged under section 144.125.

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

454.19 	Sec. 11. Minnesota Statutes 2006, section 144E.101, subdivision 6, is amended to read:
454.20 		Subd. 6.Basic life support. (a) Except as provided in paragraph (e), a basic life 
454.21 	support ambulance shall be staffed by at least two ambulance service personnel, at least 
454.22 	one of which must be an EMT, who provide a level of care so as to ensure that:
454.23 	(1) life-threatening situations and potentially serious injuries are recognized;
454.24 	(2) patients are protected from additional hazards;
454.25 	(3) basic treatment to reduce the seriousness of emergency situations is administered; 
454.26 	and
454.27 	(4) patients are transported to an appropriate medical facility for treatment.
454.28 	(b) A basic life support service shall provide basic airway management.
454.29 	(c) By January 1, 2001, a basic life support service shall provide automatic 
454.30 	defibrillation, as provided in section 144E.103, subdivision 1, paragraph (b). 
454.31 	(d) A basic life support service licensee's medical director may authorize the 
454.32 	ambulance service personnel to carry and to use medical antishock trousers and to perform 
454.33 	intravenous infusion if the ambulance service personnel have been properly trained.
454.34 	(e) Upon application from an ambulance service that includes evidence 
454.35 	demonstrating hardship, the board may grant a temporary variance from the staff 
455.1 	requirements in paragraph (a) and may authorize a basic life support ambulance to be 
455.2 	staffed by one EMT and one first responder. The variance shall apply to basic life support 
455.3 	ambulances operated by the ambulance service for up to one year from the date of the 
455.4 	variance's issuance until the ambulance service renews its license. When a variance 
455.5 	expires, an ambulance service may apply for a new variance under this paragraph. For 
455.6 	purposes of this paragraph, "ambulance service" means either an ambulance service whose 
455.7 	primary service area is located outside the metropolitan counties listed in section 473.121, 
455.8 	subdivision 4, and outside the cities of Duluth, Mankato, Moorhead, Rochester, and St. 
455.9 	Cloud; or an ambulance service based in a community with a population of less than 1,000. 

455.10 	Sec. 12. Minnesota Statutes 2006, section 144E.127, is amended to read:
455.11 	144E.127 INTERHOSPITAL; INTERFACILITY TRANSFER.
455.12 		Subdivision 1.Interhospital transfers. When transporting a patient from one 
455.13 	licensed hospital to another, a licensee may substitute for one of the required ambulance 
455.14 	service personnel, a physician, a registered nurse, or physician's assistant who has been 
455.15 	trained to use the equipment in the ambulance and is knowledgeable of the licensee's 
455.16 	ambulance service protocols.
455.17 		Subd. 2.Interfacility transfers. In an interfacility transport, a licensee whose 
455.18 	primary service area is located outside the metropolitan counties listed in section 473.121, 
455.19 	subdivision 4, and outside the cities of Duluth, Mankato, Moorhead, Rochester, and St. 
455.20 	Cloud; or an ambulance service based in a community with a population of less than 1,000, 
455.21 	may substitute one EMT with a registered first responder if an EMT or EMT-paramedic, 
455.22 	physician, registered nurse, or physician's assistant is in the patient compartment. If using 
455.23 	a physician, registered nurse, or physician's assistant as the sole provider in the patient 
455.24 	compartment, the individual must be trained to use the equipment in the ambulance and be 
455.25 	knowledgeable of the ambulance service protocols.

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

456.3 	Sec. 14. [156.015] FEES.
456.4 		Subdivision 1.Verification of licensure. The board may charge a fee of $25 per 
456.5 	license verification to a licensee for verification of licensure status provided to other 
456.6 	veterinary licensing boards.
456.7 		Subd. 2.Continuing education review. The board may charge a fee of $50 per 
456.8 	submission to a sponsor for review and approval of individual continuing education 
456.9 	seminars, courses, wet labs, and lectures. This fee does not apply to continuing education 
456.10 	sponsors that already meet the criteria for preapproval under Minnesota Rules, part 
456.11 	9100.1000, subpart 3, item A.

456.12 	Sec. 15. Minnesota Statutes 2006, section 198.075, is amended to read:
456.13 	198.075 MINNESOTA VETERANS HOME EMPLOYEES; EXCLUDED 
456.14 	FROM COMMISSARY PRIVILEGES.
456.15 	Except as provided in this section, no commissary privileges including food, laundry 
456.16 	service, janitorial service, and household supplies shall be furnished to any employee of 
456.17 	the Minnesota veterans homes. An employee of the Minnesota veterans homes who works 
456.18 	a second shift that is consecutive with a regularly scheduled shift may be allowed one free 
456.19 	meal at the veterans home on the day of that extra shift.

456.20 	Sec. 16. Minnesota Statutes 2006, section 256B.0625, is amended by adding a 
456.21 	subdivision to read:
456.22 		Subd. 49.Lead risk assessments. (a) Effective October 1, 2007, or six months after 
456.23 	federal approval, whichever is later, medical assistance covers lead risk assessments 
456.24 	provided by a lead risk assessor who is licensed by the commissioner of health under 
456.25 	section 144.9505 and employed by an assessing agency as defined in section 144.9501. 
456.26 	Medical assistance covers a onetime on-site investigation of a recipient's home or primary 
456.27 	residence to determine the existence of lead so long as the recipient is under the age 
456.28 	of 21 and has a venous blood lead level specified in section 144.9504, subdivision 2, 
456.29 	paragraph (a).
456.30 	(b) Medical assistance reimbursement covers the lead risk assessor's time to 
456.31 	complete the following activities:
456.32 	(1) gathering samples;
456.33 	(2) interviewing family members;
457.1 	(3) gathering data, including meter readings; and
457.2 	(4) providing a report with the results of the investigation and options for reducing 
457.3 	lead-based paint hazards.
457.4 	Medical assistance coverage of lead risk assessment does not include testing of 
457.5 	environmental substances such as water, paint, or soil or any other laboratory services. 
457.6 	Medical assistance coverage of lead risk assessments is not included in the capitated 
457.7 	services for children enrolled in health plans through the prepaid medical assistance 
457.8 	program and the MinnesotaCare program.
457.9 	(c) Payment for lead risk assessment must be cost-based and must meet the 
457.10 	criteria for federal financial participation under the Medicaid program. The rate must 
457.11 	be based on allowable expenditures from cost information gathered. Under section 
457.12 	144.9507, subdivision 5, federal medical assistance funds may not replace existing 
457.13 	funding for lead-related activities. The nonfederal share of costs for services provided 
457.14 	under this subdivision must be from state or local funds and is the responsibility of the 
457.15 	agency providing the risk assessment. When the risk assessment is conducted by the 
457.16 	commissioner of health, the state share must be from appropriations to the commissioner 
457.17 	of health for this purpose. Eligible expenditures for the nonfederal share of costs may not 
457.18 	be made from federal funds or funds used to match other federal funds. Any federal 
457.19 	disallowances are the responsibility of the agency providing risk assessment services.

457.20 	Sec. 17. Minnesota Statutes 2006, section 471.59, subdivision 1, is amended to read:
457.21 		Subdivision 1.Agreement. Two or more governmental units, by agreement entered 
457.22 	into through action of their governing bodies, may jointly or cooperatively exercise any 
457.23 	power common to the contracting parties or any similar powers, including those which 
457.24 	are the same except for the territorial limits within which they may be exercised. The 
457.25 	agreement may provide for the exercise of such powers by one or more of the participating 
457.26 	governmental units on behalf of the other participating units. The term "governmental 
457.27 	unit" as used in this section includes every city, county, town, school district, other 
457.28 	political subdivision of this or another state, another state, the University of Minnesota, 
457.29 	nonprofit hospitals licensed under sections 144.50 to 144.56, rehabilitation facilities and 
457.30 	extended employment providers that are certified by the commissioner of employment 
457.31 	and economic development, day training and habilitation services licensed under sections 
457.32 	245B.01 to 245B.08, nonprofit community health clinics providing family planning 
457.33 	services as defined in section 145.925, and any agency of the state of Minnesota or the 
457.34 	United States, and includes any instrumentality of a governmental unit. For the purpose of 
458.1 	this section, an instrumentality of a governmental unit means an instrumentality having 
458.2 	independent policy making and appropriating authority.

458.3 	Sec. 18. Laws 2005, First Special Session chapter 4, article 9, section 3, subdivision 2, 
458.4 	is amended to read:

458.5
458.6	Subd. 2.Community and Family Health 
Improvement

458.7	Summary by Fund
	
458.8	General
	40,413,000
	40,382,000
	
458.9458.10
	State Government 
Special Revenue
	141,000
	128,000
	
458.11	Health Care Access
	3,510,000
	3,516,000
	
458.12	Federal TANF
	6,000,000
	6,000,000
	
458.13 	Family Planning Base Reduction. Base 
458.14 	level funding for the family planning 
458.15 	special projects grant program is reduced 
458.16 	by $1,877,000 each year of the biennium 
458.17 	beginning July 1, 2007, provided that 
458.18 	this reduction shall only take place 
458.19 	upon full implementation of the family 
458.20 	planning project section of the 1115 waiver. 
458.21 	Notwithstanding Minnesota Statutes, section 
458.22 	145.925, the commissioner shall give priority 
458.23 	to community health care clinics providing 
458.24 	family planning services that either serve a 
458.25 	high number of women who do not qualify 
458.26 	for medical assistance or are unable to 
458.27 	participate in the medical assistance program 
458.28 	as a medical assistance provider when 
458.29 	allocating the remaining appropriations. 
458.30 	Notwithstanding section 15, this paragraph 
458.31 	shall not expire.
458.32 	Shaken Baby Video. Of the state 
458.33 	government special revenue fund 
458.34 	appropriation, $13,000 in 2006 is 
458.35 	appropriated to the commissioner of health 
458.36 	to provide a video to hospitals on shaken 
459.1 	baby syndrome. The commissioner of health 
459.2 	shall assess a fee to hospitals to cover the 
459.3 	cost of the approved shaken baby video and 
459.4 	the revenue received is to be deposited in the 
459.5 	state government special revenue fund.

459.6 	Sec. 19. STUDY OF BLOOD LEAD TESTING METHODS.
 459.7 	(a) The commissioner of health, in consultation with the commissioner of human 
459.8 	services, cities of the first class, health care providers, and other interested parties, shall 
459.9 	conduct a study to evaluate blood lead testing methods used to confirm elevated blood 
459.10 	lead status. The study shall examine:
459.11 	(1) the false positive rate of capillary tests for children who are younger than 72 
459.12 	months old;
459.13 	(2) current protocols for conducting capillary testing, including filter paper 
459.14 	methodology; and 
459.15 	(3) existing guidelines and regulations from other states and federal agencies 
459.16 	regarding lead testing.
459.17 	(b) The commissioner shall make recommendations on:
459.18 	(1) the use of capillary tests to initiate environmental investigations and case 
459.19 	management, including number and timing of tests and fiscal implications for state and 
459.20 	local lead programs; and
459.21 	(2) reducing the state mandatory intervention to ten micrograms of lead per deciliter 
459.22 	of whole blood.
459.23 	(c) The commissioner shall submit the results of the study and recommendations, 
459.24 	including any necessary legislative changes, to the legislature by January 15, 2008.

459.25 	Sec. 20. WINDOW SAFETY EDUCATION.
 459.26 	The commissioner of health shall create in the department's current educational 
459.27 	safety program a component targeted at parents and caregivers of young children to 
459.28 	provide awareness of the need to take precautions to prevent children from falling 
459.29 	through open windows. The commissioner of health shall consult with representatives 
459.30 	of the residential building industry, the window products industry, the child safety 
459.31 	advocacy community, and the Department of Labor and Industry to create the window 
459.32 	safety program component. The program must include the gathering of data about 
459.33 	falls from windows that result in severe injury in order to measure the effectiveness of 
459.34 	the safety program. The commissioner of health may consult with other child safety 
460.1 	advocacy groups, experts, and interested parties in the development and implementation 
460.2 	of the window safety program. The commissioner of health shall prepare and submit 
460.3 	a final report on the window safety program to the legislature by March 1, 2011. The 
460.4 	commissioner shall prepare and submit a yearly progress report to the legislature by 
460.5 	March 1 of each year beginning in 2008 until the submission of the final report. The 
460.6 	final report must include a summary of the safety program, the impact of the program on 
460.7 	children falling from windows, and any recommendations for further study or action.

460.8 	Sec. 21. REVISOR'S INSTRUCTION.
 460.9 	The revisor of statutes shall change the range reference "144.9501 to 144.9509" 
460.10 	to "144.9501 to 144.9512" wherever the reference appears in Minnesota Statutes and 
460.11 	Minnesota Rules.

460.12 	Sec. 22.  REPEALER.
 460.13 	Laws 2004, chapter 288, article 6, section 27, is repealed.

460.14 	ARTICLE 17
460.15 	PUBLIC HEALTH

460.16 	Section 1. Minnesota Statutes 2006, section 144.2215, subdivision 1, is amended to 
460.17 	read:
460.18 		Subdivision 1.Establishment. Within the limits of available appropriations, the 
460.19 	commissioner of health shall establish and maintain an information system containing data 
460.20 	on the cause, treatment, prevention, and cure of major birth defects. The commissioner 
460.21 	shall consult with representatives and experts in epidemiology, medicine, insurance, 
460.22 	health maintenance organizations, genetics, consumers, and voluntary organizations in 
460.23 	developing the system and may phase in the implementation of the system. After the 
460.24 	parents have provided informed consent under section 144.2216, subdivision 4, the 
460.25 	commissioner shall offer the parents with their informed consent a visit by a trained health 
460.26 	care worker to interview the parents about:
460.27 	(1) all previous home addresses, occupations, and places of work including from 
460.28 	childhood;
460.29 	(2) the time and place of any military service; and
460.30 	(3) known occasions or sites of toxic exposures.

460.31 	Sec. 2. Minnesota Statutes 2006, section 145A.17, is amended to read:
460.32 	145A.17 FAMILY HOME VISITING PROGRAMS.
461.1 		Subdivision 1.Establishment; goals. The commissioner shall establish a program 
461.2 	to fund family home visiting programs designed to foster a healthy beginning for children 
461.3 	in families at or below 200 percent of the federal poverty guidelines beginnings, improve 
461.4 	pregnancy outcomes, promote school readiness, prevent child abuse and neglect, reduce 
461.5 	juvenile delinquency, promote positive parenting and resiliency in children, and promote 
461.6 	family health and economic self-sufficiency for children and families. The commissioner 
461.7 	shall promote partnerships, collaboration, and multidisciplinary visiting done by teams of 
461.8 	professionals and paraprofessionals from the fields of public health nursing, social work, 
461.9 	and early childhood education. A program funded under this section must serve families 
461.10 	at or below 200 percent of the federal poverty guidelines, and other families determined 
461.11 	to be at risk, including but not limited to being at risk for child abuse, child neglect, or 
461.12 	juvenile delinquency. Programs must give priority for services to families considered to 
461.13 	be in need of services, including but not limited tobegin prenatally whenever possible and 
461.14 	must be targeted to families with:
461.15 	(1) adolescent parents;
461.16 	(2) a history of alcohol or other drug abuse;
461.17 	(3) a history of child abuse, domestic abuse, or other types of violence;
461.18 	(4) a history of domestic abuse, rape, or other forms of victimization;
461.19 	(5) reduced cognitive functioning;
461.20 	(6) a lack of knowledge of child growth and development stages;
461.21 	(7) low resiliency to adversities and environmental stresses; or
461.22 	(8) insufficient financial resources to meet family needs;
461.23 	(9) a history of homelessness;
461.24 	(10) a risk of long-term welfare dependence or family instability due to employment 
461.25 	barriers; or
461.26 	(11) other risk factors as determined by the commissioner.
461.27 		Subd. 3.Requirements for programs; process. (a) Before a community health 
461.28 	board or tribal government may receive an allocation under subdivision 2, a community 
461.29 	health board or tribal government must submit a proposal to the commissioner that 
461.30 	includes identification, based on a community assessment, of the populations at or below 
461.31 	200 percent of the federal poverty guidelines that will be served and the other populations 
461.32 	that will be served. Each program that receives funds must Community health boards 
461.33 	and tribal governments that receive funding under this section must submit a plan to 
461.34 	the commissioner describing a multidisciplinary approach to targeted home visiting for 
461.35 	families. The plan must be submitted on forms provided by the commissioner. At a 
461.36 	minimum, the plan must include the following:
462.1 	(1) a description of outreach strategies to families prenatally or at birth;
462.2 	(2) provisions for the seamless delivery of health, safety, and early learning services; 
462.3 	(3) methods to promote continuity of services when families move within the state;
462.4 	(4) a description of the community demographics;
462.5 	(5) a plan for meeting outcome measures; and
462.6 	(6) a proposed work plan that includes:
462.7 	(i) coordination to ensure nonduplication of services for children and families;
462.8 	(ii) a description of the strategies to ensure that children and families at greatest risk 
462.9 	receive appropriate services; and
462.10 	(iii) collaboration with multidisciplinary partners including public health, 
462.11 	ECFE, Head Start, community health workers, social workers, community home 
462.12 	visiting programs, school districts, and other relevant partners. Letters of intent from 
462.13 	multidisciplinary partners must be submitted with the plan.
462.14 	(b) Each program that receives funds must accomplish the following program 
462.15 	requirements:
462.16 	(1) use either a broad community-based or selective community-based strategy to 
462.17 	provide preventive and early intervention home visiting services;
462.18 	(2) offer a home visit by a trained home visitor. If a home visit is accepted, the first 
462.19 	home visit must occur prenatally or as soon after birth as possible and must include a 
462.20 	public health nursing assessment by a public health nurse;
462.21 	(3) offer, at a minimum, information on infant care, child growth and development, 
462.22 	positive parenting, preventing diseases, preventing exposure to environmental hazards, 
462.23 	and support services available in the community;
462.24 	(4) provide information on and referrals to health care services, if needed, including 
462.25 	information on and assistance in applying for health care coverage for which the child or 
462.26 	family may be eligible; and provide information on preventive services, developmental 
462.27 	assessments, and the availability of public assistance programs as appropriate;
462.28 	(5) provide youth development programs when appropriate;
462.29 	(6) recruit home visitors who will represent, to the extent possible, the races, 
462.30 	cultures, and languages spoken by families that may be served;
462.31 	(7) train and supervise home visitors in accordance with the requirements established 
462.32 	under subdivision 4;
462.33 	(8) maximize resources and minimize duplication by coordinating activitiesor 
462.34 	contracting with local social and human services organizations, education organizations, 
462.35 	and other appropriate governmental entities and community-based organizations and 
462.36 	agencies; and
463.1 	(9) utilize appropriate racial and ethnic approaches to providing home visiting 
463.2 	services; and
463.3 	(10) connect eligible families, as needed, to additional resources available in the 
463.4 	community, including, but not limited to, early care and education programs, health or 
463.5 	mental health services, family literacy programs, employment agencies, social services, 
463.6 	and child care resources and referral agencies.
463.7 	(c) When available, programs that receive funds under this section must offer or 
463.8 	provide the family with a referral to center-based or group meetings that meet at least 
463.9 	once per month for those families identified with additional needs. The meetings must 
463.10 	focus on further enhancing the information, activities, and skill-building addressed during 
463.11 	home visitation; offering opportunities for parents to meet with and support each other; 
463.12 	and offering infants and toddlers a safe, nurturing, and stimulating environment for 
463.13 	socialization and supervised play with qualified teachers.
463.14 	(b)(d) Funds available under this section shall not be used for medical services. The 
463.15 	commissioner shall establish an administrative cost limit for recipients of funds. The 
463.16 	outcome measures established under subdivision 6 must be specified to recipients of 
463.17 	funds at the time the funds are distributed.
463.18 	(c)(e) Data collected on individuals served by the home visiting programs must 
463.19 	remain confidential and must not be disclosed by providers of home visiting services 
463.20 	without a specific informed written consent that identifies disclosures to be made. 
463.21 	Upon request, agencies providing home visiting services must provide recipients with 
463.22 	information on disclosures, including the names of entities and individuals receiving the 
463.23 	information and the general purpose of the disclosure. Prospective and current recipients 
463.24 	of home visiting services must be told and informed in writing that written consent for 
463.25 	disclosure of data is not required for access to home visiting services.
463.26 		Subd. 4.Training. The commissioner shall establish training requirements for 
463.27 	home visitors and minimum requirements for supervision by a public health nurse. The 
463.28 	requirements for nurses must be consistent with chapter 148. The commissioner must 
463.29 	provide training for home visitors. Training must include child development, positive 
463.30 	parenting techniques, screening and referrals for child abuse and neglect, and diverse 
463.31 	cultural practices in child rearing and family systems the following:
463.32 	(1) effective relationships for engaging and retaining families and ensuring family 
463.33 	health, safety, and early learning;
463.34 	(2) effective methods of implementing parent education, conducting home visiting, 
463.35 	and promoting quality early childhood development;
463.36 	(3) early childhood development from birth to age five;
464.1 	(4) diverse cultural practices in child rearing and family systems;
464.2 	(5) recruiting, supervising, and retaining qualified staff;
464.3 	(6) increasing services for underserved populations; and 
464.4 	(7) relevant issues related to child welfare and protective services, with information 
464.5 	provided being consistent with state child welfare agency training.
464.6 		Subd. 5.Technical assistance. The commissioner shall provide administrative 
464.7 	and technical assistance to each program, including assistance in data collection and 
464.8 	other activities related to conducting short- and long-term evaluations of the programs 
464.9 	as required under subdivision 7. The commissioner may request research and evaluation 
464.10 	support from the University of Minnesota.
464.11 		Subd. 6.Outcome and performance measures. The commissioner shall establish 
464.12 	outcomesmeasures to determine the impact of family home visiting programs funded 
464.13 	under this section on the following areas:
464.14 	(1) appropriate utilization of preventive health care;
464.15 	(2) rates of substantiated child abuse and neglect;
464.16 	(3) rates of unintentional child injuries;
464.17 	(4) rates of children who are screened and who pass early childhood screening; and
464.18 	(5) rates of children accessing early care and educational services;
464.19 	(6) program retention rates;
464.20 	(7) number of home visits provided compared to the number of home visits planned;
464.21 	(8) participant satisfaction;
464.22 	(9) rates of at-risk populations reached; and
464.23 	(10) any additional qualitative goals and quantitative measures established by the 
464.24 	commissioner.
464.25 		Subd. 7.Evaluation. Using the qualitative goals and quantitative outcome and 
464.26 	performance measures established under subdivisions 1 and 6, the commissioner shall 
464.27 	conduct ongoing evaluations of the programs funded under this section. Community 
464.28 	health boards and tribal governments shall cooperate with the commissioner in the 
464.29 	evaluations and shall provide the commissioner with the information necessary to conduct 
464.30 	the evaluations. As part of the ongoing evaluations, the commissioner shall rate the impact 
464.31 	of the programs on the outcome measures listed in subdivision 6, and shall periodically 
464.32 	determine whether home visiting programs are the best way to achieve the qualitative 
464.33 	goals established under subdivisions 1 and 6. If the commissioner determines that home 
464.34 	visiting programs are not the best way to achieve these goals, the commissioner shall 
464.35 	provide the legislature with alternative methods for achieving them.
465.1 		Subd. 8.Report. By January 15, 2002, and January 15 of each even-numbered 
465.2 	year thereafter, the commissioner shall submit a report to the legislature on the family 
465.3 	home visiting programs funded under this section and on the results of the evaluations 
465.4 	conducted under subdivision 7.
465.5 		Subd. 9.No supplanting of existing funds. Funding available under this section 
465.6 	may be used only to supplement, not to replace, nonstate funds being used for home 
465.7 	visiting services as of July 1, 2001.

465.8 	Sec. 3. WATER LEVEL STANDARDS.
 465.9 	(a) Until the commissioner of health adopts rules setting the health risk limits 
465.10 	required in paragraph (b), the health risk limit for all contaminants in private wells and 
465.11 	public water systems must be the more stringent of the state standards or the federal 
465.12 	standards determined by the United States Environmental Protection Agency.
465.13 	(b) By March 1, 2008, the commissioner of health must publish in the State Register 
465.14 	notice of intent to adopt rules relating to health risk limits for commonly detected 
465.15 	contaminants. The commissioner of health shall review current scientific information to 
465.16 	establish health risk limits for commonly detected contaminants in groundwater and 
465.17 	in private wells that provides a reasonable margin of safety to adequately protect the 
465.18 	health of developing fetuses, infants, and children, in accordance with the requirements 
465.19 	of Minnesota Statutes, section 144.0751. Nothing in paragraph (a) prohibits the 
465.20 	commissioner from setting standards that are stricter than the federal standards.
465.21 	(c) By March 1, 2009, the commissioner shall adopt rules relating to health risk 
465.22 	limits for the ten most commonly detected contaminants.

465.23 	Sec. 4. FUNDING FOR ENVIRONMENTAL JUSTICE MAPPING.
 465.24 	The commissioner of health, in conjunction with the commissioner of the Pollution 
465.25 	Control Agency, shall apply for federal funding to renew and expand the state's 
465.26 	environmental justice mapping capacity in order to promote public health tracking. If 
465.27 	implemented, the commissioner of health shall coordinate the project with the Pollution 
465.28 	Control Agency and the Department of Agriculture in order to explore possible links 
465.29 	between environmental health and toxic exposures and to help create a system for 
465.30 	environmental public health tracking and make recommendations to the legislature for 
465.31 	additional sources of funding within the state.

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

465.33 	Sec. 5. FRAGRANCE-FREE SCHOOLS EDUCATION PILOT PROJECT.
 466.1 		Subdivision 1.Purpose. Recognizing that scented products may trigger asthma or 
466.2 	chemical sensitivity reactions in students and school staff, which can contribute to learning 
466.3 	and breathing problems, the commissioner of health shall develop a fragrance-free schools 
466.4 	education pilot project.
466.5 		Subd. 2.Education. The commissioner of health, in collaboration with the 
466.6 	Minneapolis Board of Education, shall establish a working group composed of at least 
466.7 	three students, two teachers, one school administrator, and one member of the Minneapolis 
466.8 	Board of Education to recommend an education campaign in Minneapolis public schools 
466.9 	to inform students and parents about the potentially harmful effects of the use of fragrance 
466.10 	products on sensitive students and school personnel in Minneapolis schools. The 
466.11 	commissioner shall report findings to the legislature by February 1, 2008.

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

466.13 	Sec. 6. MEDICAL ASSISTANCE COVERAGE FOR ARSENIC TESTING.
 466.14 	The commissioner of human services shall inform providers that testing for arsenic 
466.15 	under Minnesota Statutes, section 144.967, is covered under medical assistance.

466.16 	ARTICLE 18
466.17 	HUMAN SERVICES FORECAST ADJUSTMENTS

466.18
466.19	Section 1.  SUMMARY OF APPROPRIATIONS; DEPARTMENT OF HUMAN 
SERVICES FORECAST ADJUSTMENT.
 	
466.20 	The dollar amounts shown are added to or, if shown in parentheses, are subtracted 
466.21 	from the appropriations in Laws 2006, chapter 282, from the general fund, or any other 
466.22 	fund named, to the Department of Human Services for the purposes specified in this 
466.23 	article, to be available for the fiscal year indicated for each purpose. The figure "2007" 
466.24 	used in this article means that the appropriation or appropriations listed are available 
466.25 	for the fiscal year ending June 30, 2007.

466.26							2007
	
466.27	General Fund
					$
	(25,226,000)
	
466.28	Health Care Access
					$
	(53,980,000)
	
466.29	TANF
					$
	(24,805,000)
	
466.30	Total
					$
	(104,011,000)

466.31
466.32	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

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

467.1	Appropriations by Fund
	
467.2			2007
	
467.3	General
		(25,226,000)
	
467.4	Health Care Access
		(53,980,000)
	
467.5	TANF
		(24,805,000)

467.6	Subd. 2.Revenue and Pass Through

467.7	TANF
				(106,000)

467.8
467.9	Subd. 3.Children and Economic Assistance 
Grants

467.10	General
				3,221,000
	
467.11	TANF
						(24,699,000)
	
467.12 	The amounts that may be spent from this 
467.13 	appropriation for each purpose are as follows:

467.14	(a) MFIP/DWP Grants
					
467.15	General
						13,827,000
	
467.16	TANF
						(24,699,000)

467.17	(b) MFIP Child Care Assistance Grants
					
467.18	General
						(4,733,000)

467.19	(c) General Assistance Grants
					
467.20	General
						1,081,000

467.21	(d) Minnesota Supplemental Aid Grants
					
467.22	General
						(1,099,000)

467.23	(e) Group Residential Housing Grants
					
467.24	General
						(5,855,000)

467.25	Subd. 4.Basic Health Care Grants

467.26	General
				17,592,000
	
467.27	Health Care Access
						(53,980,000)
	
467.28 	The amounts that may be spent from this 
467.29 	appropriation for each purpose are as follows:

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

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

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

468.1	(d) General Assistance Medical Care
					
468.2	General
						6,403,000

468.3	Subd. 5.Continuing Care Grants

468.4	General
				(46,039,000)
	
468.5 	The amounts that may be spent from this 
468.6 	appropriation for each purpose are as follows:

468.7	(a) MA Long-Term Care Facilities
					
468.8	General
						(15,028,000)

468.9	(b) MA Long-Term Care Waivers
					
468.10	General
						(20,677,000)

468.11	(c) Chemical Dependency Entitlement Grants
					
468.12	General
						(10,334,000)

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

468.15 	ARTICLE 19
468.16 	HUMAN SERVICES APPROPRIATIONS

468.17	Section 1. SUMMARY OF APPROPRIATIONS.
 	
468.18 	The amounts shown in this section summarize direct appropriations, by fund, made 
468.19 	in this article.

468.20			2008
		2009
		Total
	
468.21	General
	$
	4,791,706,000
	$
	5,135,500,000
	$
	9,927,206,000
	
468.22
468.23	State Government Special 
Revenue
		59,686,000
		58,595,000
		118,281,000
	
468.24	Health Care Access
		448,782,000
		526,391,000
		975,173,000
	
468.25	Federal TANF
		265,813,000
		278,334,000
		5,444,147,000
	
468.26	Lottery Prize Fund
		2,185,000
		1,790,000
		3,975,000
	
468.27	Total
	$
	5,568,172,000
	$
	6,000,610,000
	$
	11,568,782,000

468.28	Sec. 2. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
468.29 	The sums shown in the columns marked "Appropriations" are appropriated to the 
468.30 	agencies and for the purposes specified in this article. The appropriations are from the 
468.31 	general fund, or another named fund, and are available for the fiscal years indicated 
468.32 	for each purpose. The figures "2008" and "2009" used in this article mean that the 
468.33 	appropriations listed under them are available for the fiscal year ending June 30, 2008, or 
469.1 	June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 
469.2 	year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal 
469.3 	year ending June 30, 2007, are effective the day following final enactment.

469.4				APPROPRIATIONS
	
469.5				Available for the Year
	
469.6				Ending June 30
	
469.7					2008
		2009

469.8	Sec. 3. HUMAN SERVICES

469.9	Subdivision 1.Total Appropriation
 	$
	5,331,907,000
	$
	5,776,086,000

469.10	Appropriations by Fund
	
469.11		2008
	2009
	
469.12	General
	4,646,624,000
	5,000,874,000
	
469.13
469.14	State Government 
Special Revenue
	549,000
	565,000
	
469.15	Health Care Access
	428,154,000
	506,256,000
	
469.16	Federal TANF
	254,394,000
	266,601,000
	
469.17	Lottery Prize Fund
	2,185,000
	1,790,000
	
469.18 	The amounts that may be spent for each 
469.19 	purpose are specified in the following 
469.20 	subdivisions.
469.21 	Receipts for Systems Projects.
469.22 	Appropriations and federal receipts for 
469.23 	information system projects for MAXIS, 
469.24 	PRISM, MMIS, and SSIS must be deposited 
469.25 	in the state system account authorized in 
469.26 	Minnesota Statutes, section 256.014. Money 
469.27 	appropriated for computer projects approved 
469.28 	by the Minnesota Office of Enterprise 
469.29 	Technology, funded by the legislature, and 
469.30 	approved by the commissioner of finance, 
469.31 	may be transferred from one project to 
469.32 	another and from development to operations 
469.33 	as the commissioner of human services 
469.34 	considers necessary. Any unexpended 
469.35 	balance in the appropriation for these 
470.1 	projects does not cancel but is available for 
470.2 	ongoing development and operations.
470.3 	Pay for Performance. (a) Of the general 
470.4 	fund appropriation, $272,000 each year 
470.5 	is available to the commissioner of 
470.6 	human services only under the following 
470.7 	circumstances:
470.8 	(1) $272,000 shall be made available by the 
470.9 	commissioner of finance on January 1, 2009, 
470.10 	only after notification by the commissioner 
470.11 	of human services to the commissioner of 
470.12 	finance and to the chairs of the relevant house 
470.13 	of representatives and senate finance and 
470.14 	policy committees that the average number 
470.15 	of days from the receipt of a MinnesotaCare 
470.16 	application at the state processing unit until 
470.17 	the initial eligibility determination of the 
470.18 	application was 30 days or less during the 
470.19 	period October 1, 2007, to September 30, 
470.20 	2008. Applications transferred from counties 
470.21 	to the state processing unit are excluded from 
470.22 	this calculation; and 
470.23 	(2) $272,000 shall be made available by the 
470.24 	commissioner of finance on January 1, 2009, 
470.25 	only after notification by the commissioner 
470.26 	of human services to the commissioner of 
470.27 	finance and to the chairs of the relevant 
470.28 	house of representatives and senate finance 
470.29 	and policy committees that the commissioner 
470.30 	initiated a separate treatment program for 
470.31 	persons in the Minnesota sex offenders 
470.32 	program who are between the ages of 18 and 
470.33 	25 by January 1, 2008.
470.34 	(b) Regardless of whether these 
470.35 	appropriations are made available to 
471.1 	the commissioner of human services, they 
471.2 	shall be part of base level funding for the 
471.3 	biennium beginning July 1, 2009.
471.4 	Nonfederal Share Transfers. The 
471.5 	nonfederal share of activities for which 
471.6 	federal administrative reimbursement is 
471.7 	appropriated to the commissioner may be 
471.8 	transferred to the special revenue fund.
471.9 	TANF Maintenance of Effort. (a) In order 
471.10 	to meet the basic MOE requirements of the 
471.11 	TANF block grant specified under Code 
471.12 	of Federal Regulations, title 45, section 
471.13 	263.1, the commissioner may only report 
471.14 	nonfederal money expended for allowable 
471.15 	activities listed in the following clauses as 
471.16 	TANF/MOE expenditures:
471.17 	(1) MFIP cash, diversionary work program, 
471.18 	and food assistance benefits under Minnesota 
471.19 	Statutes, chapter 256J;
471.20 	(2) the child care assistance programs 
471.21 	under Minnesota Statutes, sections 119B.03 
471.22 	and 119B.05, and county child care 
471.23 	administrative costs under Minnesota 
471.24 	Statutes, section 119B.15;
471.25 	(3) state and county MFIP administrative 
471.26 	costs under Minnesota Statutes, chapters 
471.27 	256J and 256K;
471.28 	(4) state, county, and tribal MFIP 
471.29 	employment services under Minnesota 
471.30 	Statutes, chapters 256J and 256K;
471.31 	(5) expenditures made on behalf of 
471.32 	noncitizen MFIP recipients who qualify 
471.33 	for the medical assistance without federal 
471.34 	financial participation program under 
472.1 	Minnesota Statutes, section 256B.06, 
472.2 	subdivision 4, paragraphs (d), (e), and (j); 
472.3 	and
472.4 	(6) qualifying working family credit 
472.5 	expenditures under Minnesota Statutes, 
472.6 	section 290.0671.
472.7 	(b) The commissioner shall ensure that 
472.8 	sufficient qualified nonfederal expenditures 
472.9 	are made each year to meet the state's 
472.10 	TANF/MOE requirements. For the activities 
472.11 	listed in paragraph (a), clauses (2) to 
472.12 	(6), the commissioner may only report 
472.13 	expenditures that are excluded from the 
472.14 	definition of assistance under Code of 
472.15 	Federal Regulations, title 45, section 260.31.
472.16 	(c) The commissioner shall ensure that the 
472.17 	MOE used by the commissioner of finance 
472.18 	for the February and November forecasts 
472.19 	required under Minnesota Statutes, section 
472.20 	16A.103, contains expenditures under 
472.21 	paragraph (a), clause (1), equal to at least 16 
472.22 	percent of the total required under Code of 
472.23 	Federal Regulations, title 45, section 263.1.
472.24 	(d) Minnesota Statutes, section 256.011, 
472.25 	subdivision 3, which requires that federal 
472.26 	grants or aids secured or obtained under that 
472.27 	subdivision be used to reduce any direct 
472.28 	appropriations provided by law, does not 
472.29 	apply if the grants or aids are federal TANF 
472.30 	funds.
472.31 	(e) Notwithstanding any contrary provision 
472.32 	in this article, this rider expires June 30, 
472.33 	2011.
472.34 	Working Family Credit Expenditures as 
472.35 	TANF/MOE. The commissioner may claim 
473.1 	as TANF/MOE up to $6,707,000 per year 
473.2 	for fiscal year 2008 through fiscal year 2011. 
473.3 	Notwithstanding any contrary provision in 
473.4 	this article, this rider expires June 30, 2011.
473.5 	Additional Working Family Credit 
473.6 	Expenditures to be Claimed for 
473.7 	TANF/MOE. In addition to the amounts 
473.8 	provided in this section, the commissioner 
473.9 	may count the following amounts of working 
473.10 	family credit expenditure as TANF/MOE:
473.11 	(1) fiscal year 2008, $8,126,000;
473.12 	(2) fiscal year 2009, $22,593,000;
473.13 	(3) fiscal year 2010, $12,259,000; and
473.14 	(4) fiscal year 2011, $11,334,000.
473.15 	Notwithstanding any contrary provision in 
473.16 	this article, this rider expires June 30, 2011.
473.17 	Capitation Rate Increase. Of the health care 
473.18 	access fund appropriations to the University 
473.19 	of Minnesota in the higher education 
473.20 	omnibus appropriation bill, $2,157,000 in 
473.21 	fiscal year 2008 and $2,157,000 in fiscal year 
473.22 	2009 are to be used to increase the capitation 
473.23 	payments under Minnesota Statutes, section 
473.24 	256B.69.

473.25	Subd. 2.Agency Management
 					
473.26 	The amounts that may be spent from the 
473.27 	appropriation for each purpose are as follows:

473.28	(a) Financial Operations

473.29	Appropriations by Fund
	
473.30	General
	7,165,000
	7,652,000
	
473.31	Health Care Access
	893,000
	888,000
	
473.32	Federal TANF
	122,000
	122,000
	
473.33 	Base Adjustment. The general fund base 
473.34 	is increased by $454,000 in fiscal year 2010 
474.1 	and $454,000 in fiscal year 2011 for financial 
474.2 	operations.

474.3	(b) Legal and Regulation Operations

474.4	Appropriations by Fund
	
474.5	General
	12,352,000
	12,439,000
	
474.6
474.7	State Government 
Special Revenue
	427,000
	440,000
	
474.8	Health Care Access
	900,000
	926,000
	
474.9	Federal TANF
	100,000
	100,000
	
474.10 	Base Adjustment. The general fund base 
474.11 	is $12,376,000 for each of fiscal years 2010 
474.12 	and 2011.
474.13 	Child Care Licensing. $116,000 in fiscal 
474.14 	year 2008 and $233,000 in fiscal year 2009 
474.15 	are appropriated from the general fund to 
474.16 	the commissioner of human services for 
474.17 	purposes of completing background studies 
474.18 	for family and group family child care 
474.19 	providers under Minnesota Statutes, chapter 
474.20 	245C. This appropriation will be $144,000 in 
474.21 	fiscal year 2010 and $56,000 in fiscal year 
474.22 	2011.

474.23	(c) Management Operations

474.24	Appropriations by Fund
	
474.25	General
	4,332,000
	4,419,000
	
474.26	Health Care Access
	236,000
	243,000

474.27	(d) Information Technology Operations

474.28	Appropriations by Fund
	
474.29	General
	23,949,000
	23,922,000
	
474.30	Health Care Access
	6,015,000
	5,972,000

474.31
474.32	Subd. 3.Revenue and Pass-Through 
Expenditures

474.33	Federal TANF
	59,246,000
	61,680,000
	
474.34 	TANF Transfer to Federal Child Care 
474.35 	and Development Fund. The following 
475.1 	TANF fund amounts are appropriated to 
475.2 	the commissioner for the purposes of MFIP 
475.3 	transition year child care under MFIP, 
475.4 	Minnesota Statutes, section 119B.05:
475.5 	(1) fiscal year 2008, $2,737,000;
475.6 	(2) fiscal year 2009, $4,783,000;
475.7 	(3) fiscal year 2010, $4,789,000; and
475.8 	(4) fiscal year 2011, $4,821,000.
475.9 	The commissioner shall authorize transfer 
475.10 	of sufficient TANF funds to the federal 
475.11 	child care and development fund to meet 
475.12 	this appropriation and shall ensure that all 
475.13 	transferred funds are expended according 
475.14 	the federal child care and development fund 
475.15 	regulations.

475.16
475.17	Subd. 4.Children and Economic Assistance 
Grants
 					
475.18 	The amounts that may be spent from this 
475.19 	appropriation for each purpose are as follows:

475.20	(a) MFIP/DWP Grants

475.21	Appropriations by Fund
	
475.22	General
	62,069,000
	62,514,000
	
475.23	Federal TANF
	78,402,000
	85,211,000

475.24	(b) Support Services Grants

475.25	Appropriations by Fund
	
475.26	General
	8,715,000
	8,715,000
	
475.27	Federal TANF
	113,429,000
	115,902,000
	
475.28 	TANF Prior Appropriation Cancellation.
475.29 	Notwithstanding Laws 2001, First Special 
475.30 	Session chapter 9, article 17, section 
475.31 	2, subdivision 11, paragraph (b), any 
475.32 	unexpended TANF funds appropriated to the 
475.33 	commissioner to contract with the Board of 
475.34 	Trustees of Minnesota State Colleges and 
476.1 	Universities, to provide tuition waivers to 
476.2 	employees of health care and human service 
476.3 	providers that are members of qualifying 
476.4 	consortia operating under Minnesota 
476.5 	Statutes, sections 116L.10 to 116L.15, must 
476.6 	cancel at the end of fiscal year 2007.
476.7 	MFIP Pilot Program. Of the general fund 
476.8 	appropriation, $100,000 in fiscal year 2008 
476.9 	and $750,000 in fiscal year 2009 are for a 
476.10 	grant to the Stearns-Benton Employment and 
476.11 	Training Council for the Workforce U pilot 
476.12 	program. Base level funding for this program 
476.13 	shall be $750,000 in 2010 and $0 in 2011.
476.14 	Supported Work. (1) $5,468,000 in fiscal 
476.15 	year 2008 and $7,291,000 in fiscal year 2009 
476.16 	are appropriated from the TANF fund to the 
476.17 	commissioner for the biennium beginning 
476.18 	July 1, 2007, for supported work for MFIP 
476.19 	participants, to be allocated to counties 
476.20 	and tribes based on the criteria under 
476.21 	clauses (2) and (3). Paid transitional work 
476.22 	experience and other supported employment 
476.23 	under this rider provides a continuum of 
476.24 	employment assistance, including outreach 
476.25 	and recruitment, program orientation 
476.26 	and intake, testing and assessment, job 
476.27 	development and marketing, preworksite 
476.28 	training, supported worksite experience, job 
476.29 	coaching, and postplacement follow-up, in 
476.30 	addition to extensive case management and 
476.31 	referral services.
476.32 	(2) A county or tribe is eligible to receive an 
476.33 	allocation under this rider if:
476.34 	(i) the county or tribe is not meeting the 
476.35 	federal work participation rate;
477.1 	(ii) the county or tribe has participants who 
477.2 	are required to perform work activities under 
477.3 	Minnesota Statutes, chapter 256J, but are not 
477.4 	meeting hourly work requirements; and
477.5 	(iii) the county or tribe has assessed 
477.6 	participants who have completed six weeks 
477.7 	of job search or are required to perform 
477.8 	work activities and are not meeting the 
477.9 	hourly requirements, and the county or tribe 
477.10 	has determined that the participant would 
477.11 	benefit from working in a supported work 
477.12 	environment.
477.13 	(3) A county or tribe may also be eligible for 
477.14 	funds in order to contract for supplemental 
477.15 	hours of paid work at the participant's child's 
477.16 	place of education, child care location, or the 
477.17 	child's physical or mental health treatment 
477.18 	facility or office. This grant to counties and 
477.19 	tribes is specifically for MFIP participants 
477.20 	who need to work up to five hours more 
477.21 	per week in order to meet the hourly work 
477.22 	requirement, and the participant's employer 
477.23 	cannot or will not offer more hours to the 
477.24 	participant.
477.25 	Work Study. $750,000 in fiscal year 
477.26 	2008 and $750,000 in fiscal year 2009 are 
477.27 	appropriated from the TANF fund to the 
477.28 	commissioner to contract with the Minnesota 
477.29 	Office of Higher Education for the biennium 
477.30 	beginning July 1, 2007, for work study grants 
477.31 	under Minnesota Statutes, section 136A.233, 
477.32 	specifically for low-income individuals who 
477.33 	receive assistance under Minnesota Statutes, 
477.34 	chapter 256J, and for grants to opportunities 
477.35 	industrialization centers.
478.1 	Integrated Service Projects. $2,500,000 in 
478.2 	fiscal year 2008 and $2,500,000 in fiscal year 
478.3 	2009 are appropriated from the TANF fund 
478.4 	to the commissioner to fund the integrated 
478.5 	services project for MFIP families.
478.6 	Base Adjustment. The TANF base for fiscal 
478.7 	year 2010 is $115,902,000 and for fiscal year 
478.8 	2011 is $115,152,000.

478.9	(c) MFIP Child Care Assistance Grants

478.10	General
	74,672,000
	72,173,000

478.11
478.12	(d) Basic Sliding Fee Child Care Assistance 
Grants

478.13	General
	46,398,000
	48,548,000
	
478.14 	Base Adjustment. The general fund base 
478.15 	is $46,400,000 for fiscal year 2010 and 
478.16 	$45,535,000 for fiscal year 2011.
478.17 	At-Home Infant Care Program. No 
478.18 	funding shall be allocated to or spent on 
478.19 	the at-home infant care program under 
478.20 	Minnesota Statutes, section 119B.035.

478.21	(e) Child Care Development Grants

478.22	General
	4,365,000
	4,365,000
	
478.23 	Child Care Services Grants. $1,000,000 
478.24 	each year is appropriated from the general 
478.25 	fund to the commissioner of human services 
478.26 	for the biennium beginning July 1, 2007, for 
478.27 	purposes of providing child care services 
478.28 	grants under Minnesota Statutes, section 
478.29 	119B.21, subdivision 5. This appropriation 
478.30 	is for the 2008-2009 biennium only, and does 
478.31 	not increase the base funding.
478.32 	Early Childhood Professional 
478.33 	Development System. $1,000,000 
479.1 	each year is appropriated from the general 
479.2 	fund to the commissioner of human services 
479.3 	for the biennium beginning July 1, 2007, for 
479.4 	purposes of the early childhood professional 
479.5 	development system, which increases the 
479.6 	quality and continuum of professional 
479.7 	development opportunities for child care 
479.8 	practitioners. This appropriation is for the 
479.9 	2008-2009 biennium only, and does not 
479.10 	increase the base funding.
479.11 	Family, Friend, and Neighbor Grant 
479.12 	Program. $750,000 in fiscal year 2008 and 
479.13 	$750,000 in fiscal year 2009 are appropriated 
479.14 	from the general fund to the commissioner 
479.15 	of human services for the family, friend, and 
479.16 	neighbor grant program in article 1, section 
479.17 	94. Any balance in the first year does not 
479.18 	cancel but is available in the second year. 
479.19 	This appropriation is for the 2008-2009 
479.20 	biennium only, and does not increase the 
479.21 	base funding.
479.22 	(f) Increased Child Care Provider 
479.23 	Connections. (1) $200,000 is appropriated 
479.24 	from the general fund to the commissioner of 
479.25 	human services for the biennium beginning 
479.26 	July 1, 2007, for the following purposes: 
479.27 	$50,000 each year is for a grant to Hennepin 
479.28 	County, and  $50,000 each year is for a grant 
479.29 	to Ramsey County. The two counties shall 
479.30 	each contract with a nonprofit organization 
479.31 	to work with the contracting county 
479.32 	and county-based licensed family child 
479.33 	care providers to facilitate county-based 
479.34 	information regarding family and children's 
479.35 	resources and to make training and peer 
479.36 	support available to licensed family child 
480.1 	care providers consistent with clause (2). 
480.2 	These appropriations are available until June 
480.3 	30, 2009, and shall not become part of base 
480.4 	level funding for the biennium beginning 
480.5 	July 1, 2009.
480.6 	(2) Programs to improve child care provider 
480.7 	connections to county services shall be 
480.8 	established in Hennepin and Ramsey 
480.9 	counties to:
480.10 	(i) improve county contact activities 
480.11 	with county-licensed family child care 
480.12 	providers that facilitate utilization of county 
480.13 	educational, social service, public health, 
480.14 	and economic assistance services by eligible 
480.15 	families, parents, and children using licensed 
480.16 	family child care; and
480.17 	(ii) support licensed family child care 
480.18 	providers to qualify as quality-rated child 
480.19 	care providers through peer support and 
480.20 	coaching networks. 
480.21 	Hennepin and Ramsey Counties shall 
480.22 	contract with a nonprofit organization under 
480.23 	clause (1) that utilizes licensed family child 
480.24 	care providers as contacts for families using 
480.25 	licensed family child care and to provide 
480.26 	peer support to licensed family child care 
480.27 	providers.
480.28 	(3) Hennepin and Ramsey Counties 
480.29 	must evaluate (i) successful strategies 
480.30 	for increasing contact with county-based 
480.31 	licensed family child care providers and (ii) 
480.32 	the effect of that increased contact and report 
480.33 	their findings to the appropriate legislative 
480.34 	committees by February 15, 2010.
481.1 	Base Adjustment. The general fund base 
481.2 	is $1,515,000 for each of fiscal years 2010 
481.3 	and 2011.

481.4	(g) Child Support Enforcement Grants

481.5	General
	11,038,000
	3,705,000
	
481.6 	Child Support Enforcement. $7,333,000 
481.7 	for fiscal year 2008 is to make grants to 
481.8 	counties for child support enforcement 
481.9 	programs to make up for the loss under the 
481.10 	2005 federal Deficit Reduction Act of federal 
481.11 	matching funds for federal incentive funds 
481.12 	passed on to the counties by the state.
481.13 	This appropriation is available until June 30, 
481.14 	2009.

481.15	(h) Children's Services Grants

481.16	Appropriations by Fund
	
481.17	General
	66,659,000
	83,359,000
	
481.18	Health Care Access
	250,000
	-0-
	
481.19	TANF
	250,000
	730,000
	
481.20 	County Allocations for Rate Increases.
481.21 	County Children and Community Services 
481.22 	Act allocations shall be increased by 
481.23 	$321,000 effective October 1, 2007, and 
481.24 	$980,000 effective October 1, 2008, to help 
481.25 	counties pay for the rate adjustments to 
481.26 	day training and habilitation providers for 
481.27 	participants paid by county social service 
481.28 	funds. Notwithstanding the provisions of 
481.29 	Minnesota Statutes, section 256M.40, the 
481.30 	allocation to a county shall be based on 
481.31 	the county's proportion of social services 
481.32 	spending for day training and habilitation 
481.33 	services as determined in the most recent 
481.34 	social services expenditure and grant 
481.35 	reconciliation report.
482.1 	Privatized Adoption Grants. Federal 
482.2 	reimbursement for privatized adoption grant 
482.3 	and foster care recruitment grant expenditures 
482.4 	is appropriated to the commissioner for 
482.5 	adoption grants and foster care and adoption 
482.6 	administrative purposes.
482.7 	Adoption Assistance Incentive Grants.
482.8 	Federal funds available during fiscal year 
482.9 	2008 and fiscal year 2009 for the adoption 
482.10 	incentive grants are appropriated to the 
482.11 	commissioner for these purposes.
482.12 	Adoption Assistance and Relative Custody 
482.13 	Assistance. The commissioner may transfer 
482.14 	unencumbered appropriation balances for 
482.15 	adoption assistance and relative custody 
482.16 	assistance between fiscal years and between 
482.17 	programs.
482.18 	Adoption Assistance and Relative 
482.19 	Custody Assistance Subsidy Payment 
482.20 	Increase. Notwithstanding Minnesota 
482.21 	Rules, part 9560.0083, subparts 5 and 6, the 
482.22 	commissioner shall increase the payment 
482.23 	schedules for basic and supplemental 
482.24 	maintenance needs subsidies by 3.95 percent 
482.25 	effective July 1, 2007. The commissioner 
482.26 	may make cost-neutral adjustments between 
482.27 	schedules and between brackets within 
482.28 	schedules to allow for whole-dollar bracket 
482.29 	levels and account for differential cost 
482.30 	increases in caring for children with special 
482.31 	needs. Counties have until December 31, 
482.32 	2007, to implement the relative custody 
482.33 	assistance payment increases and shall make 
482.34 	payment adjustments retroactive to July 1, 
482.35 	2007.
483.1 	Crisis Nurseries. $1,100,000 in fiscal year 
483.2 	2008 and $1,100,000 in fiscal year 2009 are 
483.3 	appropriated from the general fund for the 
483.4 	crisis nurseries program. Of this amount, 
483.5 	$100,000 each year is to be made available 
483.6 	for capacity development and technical 
483.7 	support for crisis nurseries.
483.8 	Children's Mental Health Grants. Of this 
483.9 	general fund appropriation, $6,700,000 in 
483.10 	fiscal year 2008 and $13,500,000 in fiscal 
483.11 	year 2009 are to the commissioner of human 
483.12 	services for children's mental health grants. 
483.13 	The purpose of these grants is to increase and 
483.14 	maintain the state's children's mental health 
483.15 	service capacity, especially for school-based 
483.16 	mental health services. The commissioner 
483.17 	shall require grantees to utilize all available 
483.18 	third party reimbursement sources as a 
483.19 	condition of using state grant funds. At 
483.20 	least 15 percent of these funds will be used 
483.21 	to encourage efficiencies through early 
483.22 	intervention services. At least another 15 
483.23 	percent shall be used to provide respite care 
483.24 	services for children with severe emotional 
483.25 	disturbance at risk of out-of-home placement.
483.26 	Mental Health Crisis Services. Of this 
483.27 	general fund appropriation, $1,500,000 in 
483.28 	fiscal year 2008 and $3,500,000 in fiscal 
483.29 	year 2009 are to the commissioner of human 
483.30 	services for statewide funding of children's 
483.31 	mental health crisis services. Providers must 
483.32 	utilize all available funding streams.
483.33 	Children's Mental Health Evidence-Based 
483.34 	and Best Practices. Of this general fund 
483.35 	appropriation, $750,000 in fiscal year 2008 
484.1 	and $1,500,000 in fiscal year 2009 are to 
484.2 	the commissioner of human services for 
484.3 	children's mental health evidence-based and 
484.4 	best practices including, but not limited 
484.5 	to: Adolescent Integrated Dual Diagnosis 
484.6 	Treatment services; school-based mental 
484.7 	health services; co-location of mental 
484.8 	health and physical health care, and; the 
484.9 	use of technological resources to better 
484.10 	inform diagnosis and development of 
484.11 	treatment plan development by mental 
484.12 	health professionals. The commissioner 
484.13 	shall require grantees to utilize all available 
484.14 	third-party reimbursement sources as a 
484.15 	condition of using state grant funds.
484.16 	Culturally Specific Mental Health 
484.17 	Treatment Grants. Of this general fund 
484.18 	appropriation, $150,000 in fiscal year 2008 
484.19 	and $600,000 in fiscal year 2009 are to 
484.20 	the commissioner of human services for 
484.21 	children's mental health grants to support 
484.22 	increased availability of mental health 
484.23 	services for persons from cultural and 
484.24 	ethnic minorities within the state. The 
484.25 	commissioner shall use at least 20 percent 
484.26 	of these funds to help members of cultural 
484.27 	and ethnic minority communities to become 
484.28 	qualified mental health professionals and 
484.29 	practitioners. The commissioner shall assist 
484.30 	grantees to meet third-party credentialing 
484.31 	requirements and require them to utilize all 
484.32 	available third-party reimbursement sources 
484.33 	as a condition of using state grant funds.
484.34 	Mental Health Services for Children with 
484.35 	Special Treatment Needs. Of this general 
484.36 	fund appropriation, $225,000 in fiscal year 
485.1 	2008 and $550,000 in fiscal year 2009 are 
485.2 	to the commissioner of human services for 
485.3 	children's mental health grants to support 
485.4 	increased availability of mental health 
485.5 	services for children with special treatment 
485.6 	needs. These shall include, but not be limited 
485.7 	to: victims of trauma, including children 
485.8 	subjected to abuse or neglect, veterans and 
485.9 	their families, and refugee populations; 
485.10 	persons with complex treatment needs, 
485.11 	such as eating disorders; and those with 
485.12 	low incidence disorders. Of this amount, 
485.13 	$150,000 in fiscal year 2008 and $250,000 in 
485.14 	fiscal year 2009 must be directed to programs 
485.15 	serving victims of trauma.
485.16 	MFIP and Children's Mental Health Pilot 
485.17 	Project. Of the TANF fund appropriation, 
485.18 	$100,000 in fiscal year 2008 and $200,000 
485.19 	in fiscal year 2009 are to the commissioner 
485.20 	of human services to fund the MFIP and 
485.21 	children's mental health pilot project. Of 
485.22 	these amounts, up to $100,000 may be 
485.23 	expended on evaluation of this pilot.
485.24 	Regional Children's Mental Health 
485.25 	Initiative. $700,000 in fiscal year 2008 and 
485.26 	$700,000 in fiscal year 2009 are appropriated 
485.27 	to the commissioner of human services to 
485.28 	fund the Regional Children's Mental Health 
485.29 	Initiative pilot project. This is a onetime 
485.30 	appropriation.
485.31 	Fetal Alcohol Syndrome. Of the general 
485.32 	fund appropriation, $75,000 in fiscal year 
485.33 	2008 and $75,000 in fiscal year 2009 are 
485.34 	to the commissioner to transfer as grants 
485.35 	to three programs that provide services 
486.1 	to reduce fetal alcohol syndrome under 
486.2 	Minnesota Statutes, section 254A.171. The 
486.3 	three program grantees are the University 
486.4 	of Minnesota, the Meeker-McLeod-Sibley 
486.5 	Community, and the American Indian Family 
486.6 	Center. This appropriation shall become part 
486.7 	of the base appropriation.
486.8 	Prenatal Alcohol or Drug Use. Of the 
486.9 	general fund appropriation, $75,000 each 
486.10 	year is to award grants beginning July 1, 
486.11 	2007, to programs that provide services 
486.12 	under Minnesota Statutes, section 254A.171, 
486.13 	in Pine, Kanabec, and Carlton Counties. This 
486.14 	appropriation shall become part of the base 
486.15 	appropriation.
486.16 	Base Adjustment. The general fund base 
486.17 	is $81,424,000 in fiscal year 2010 and 
486.18 	$81,427,000 in fiscal year 2011.
486.19 	The TANF fund base is $722,000 in each 
486.20 	year of the 2010-2011 biennium.

486.21	(i) Children and Community Services Grants

486.22	General
	104,936,000
	64,419,000
	
486.23 	Base Adjustment. The general fund base 
486.24 	is $69,666,000 in each of fiscal years 2010 
486.25 	and 2011.
486.26 	Targeted Case Management Temporary 
486.27 	Funding. Of the general fund appropriation, 
486.28 	$36,134,000 in fiscal year 2008 is allocated to 
486.29 	counties and tribes affected by reductions in 
486.30 	targeted case management federal Medicaid 
486.31 	revenue as a result of the provisions in 
486.32 	the federal Deficit Reduction Act of 2005, 
486.33 	Public Law 109-171. The commissioner 
486.34 	shall distribute the funds proportionate 
487.1 	to each affected county or tribe's targeted 
487.2 	case management federal earnings for 
487.3 	calendar year 2005. Prior to distribution 
487.4 	of funds, the commissioner shall estimate 
487.5 	and certify the amount by which the federal 
487.6 	regulations will reduce case management 
487.7 	revenue over the 2008-2009 biennium. The 
487.8 	commissioner may provide grants up to the 
487.9 	amount of the estimated reduction, not to 
487.10 	exceed $36,134,000 for the biennium. The 
487.11 	commissioner may determine the timing and 
487.12 	frequency of payments to counties. These 
487.13 	funds are available in either year of the 
487.14 	biennium. Counties shall use these funds to 
487.15 	pay for social service-related costs, but the 
487.16 	funds are not subject to provisions of the 
487.17 	Children and Community Services Act grant 
487.18 	under Minnesota Statutes, chapter 256M.
487.19 	Child Welfare Project. Of this 
487.20 	appropriation, $10,000 in fiscal year 
487.21 	2008 and $390,000 in fiscal year 2009 from 
487.22 	the TANF fund and $720,000 in fiscal year 
487.23 	2009 from the general fund are for expanding 
487.24 	the American Indian chid welfare project 
487.25 	under Minnesota Statutes, section 256.01, 
487.26 	subdivision 14b, to include the Red Lake 
487.27 	Band of Chippewa Indians Tribe, provided 
487.28 	the tribe meets the criteria in Minnesota 
487.29 	Statutes, section 256.01, subdivision 14b.

487.30	(j) General Assistance Grants

487.31	General
	37,876,000
	38,253,000
	
487.32 	General Assistance Standard. The 
487.33 	commissioner shall set the monthly standard 
487.34 	of assistance for general assistance units 
487.35 	consisting of an adult recipient who is 
488.1 	childless and unmarried or living apart 
488.2 	from parents or a legal guardian at $203. 
488.3 	The commissioner may reduce this amount 
488.4 	according to Laws 1997, chapter 85, article 
488.5 	3, section 54.
488.6 	Emergency General Assistance. The 
488.7 	amount appropriated for emergency general 
488.8 	assistance funds is limited to no more 
488.9 	than $7,889,812 in fiscal year 2008 and 
488.10 	$7,889,812 in fiscal year 2009. Funds 
488.11 	to counties must be allocated by the 
488.12 	commissioner using the allocation method 
488.13 	specified in Minnesota Statutes, section 
488.14 	256D.06.

488.15	(k) Minnesota Supplemental Aid Grants

488.16	General
	30,505,000
	30,812,000
	
488.17 	Emergency Minnesota Supplemental 
488.18 	Aid Funds. The amount appropriated for 
488.19 	emergency Minnesota supplemental aid 
488.20 	funds is limited to no more than $1,100,000 
488.21 	in fiscal year 2008 and $1,100,000 in fiscal 
488.22 	year 2009. Funds to counties must be 
488.23 	allocated by the commissioner using the 
488.24 	allocation method specified in Minnesota 
488.25 	Statutes, section 256D.46.

488.26	(l) Group Residential Housing Grants

488.27	General
	90,949,000
	98,456,000
	
488.28 	People Incorporated. $403,000 in fiscal 
488.29 	year 2008 and $403,000 in fiscal year 2009 
488.30 	are appropriated from the general fund to the 
488.31 	commissioner of human services to augment 
488.32 	community support and mental health 
488.33 	services provided to individuals residing in 
489.1 	facilities under Minnesota Statutes, section 
489.2 	256I.05, subdivision 1h.

489.3
489.4	(m) Other Children and Economic Assistance 
Grants

489.5	General
	21,672,000
	19,558,000
	
489.6	Federal TANF
	1,500,000
	1,500,000
	
489.7 	Base Adjustment. The general fund base 
489.8 	shall be $19,833,000 in fiscal year 2010 and 
489.9 	$19,333,000 in fiscal year 2011.
489.10 	Grants for Programs Serving Young 
489.11 	Parents. Of the TANF fund appropriation, 
489.12 	$140,000 each year is for a grant to a program 
489.13 	or programs that provide comprehensive 
489.14 	services through a private, nonprofit agency 
489.15 	to young parents in Hennepin County who 
489.16 	have dropped out of school and are receiving 
489.17 	public assistance. The program administrator 
489.18 	shall report annually to the commissioner on 
489.19 	skills development, education, job training, 
489.20 	and job placement outcomes for program 
489.21 	participants.
489.22 	Alcohol and Drug Intervention. Of this 
489.23 	appropriation, $300,000 each year from the 
489.24 	general fund and $150,000 each year from 
489.25 	the TANF fund are to the commissioner for 
489.26 	the purposes of a program in Ramsey County 
489.27 	that provides early intervention efforts 
489.28 	designed to discourage pregnant women 
489.29 	from using alcohol and illegal drugs. The 
489.30 	appropriation shall not become part of base 
489.31 	level funding and is available until spent.
489.32 	Homeless and Runaway Youth. $1,764,000 
489.33 	in the first year and $1,500,000 in the second 
489.34 	year are for the Runaway and Homeless 
489.35 	Youth Act under Minnesota Statutes, section 
490.1 	256K.45. Funds shall be spent in each area 
490.2 	of the continuum of care to ensure that 
490.3 	programs are meeting the greatest need. The 
490.4 	base is decreased by $425,000 each year in 
490.5 	fiscal year 2010 and fiscal year 2011. 
490.6 	Transitional Housing and Emergency 
490.7 	Services.
490.8 	(1) $750,000 the first year from the general 
490.9 	fund is for transitional housing programs 
490.10 	under Minnesota Statutes, section 256E.33. 
490.11 	Up to ten percent of this appropriation may 
490.12 	be used for housing and services which 
490.13 	extend beyond 24 months; and
490.14 	(2) $600,000 the first year from the general 
490.15 	fund is added to the base for emergency 
490.16 	services grants under Laws 1997, chapter 
490.17 	162, article 3, section 7.
490.18 	Foodshelf Programs. $325,000 each year 
490.19 	from the general fund is for foodshelf 
490.20 	programs under Minnesota Statutes, section 
490.21 	256E.34.
490.22 	Minnesota Community Action Grants. (a) 
490.23 	Of the general fund appropriation, $250,000 
490.24 	each year is for the purposes of Minnesota 
490.25 	community action grants under Minnesota 
490.26 	Statutes, sections 256E.30 to 256E.32. 
490.27 	(b) Of the TANF appropriation, $1,500,000 
490.28 	each year is for community action agencies 
490.29 	for auto repairs, auto loans, and auto purchase 
490.30 	grants to individuals who receive benefits 
490.31 	under Minnesota Statutes, chapter 256J.
490.32 	(c) Money appropriated under paragraphs (a) 
490.33 	and (b) that is not spent in the first year does 
491.1 	not cancel but is available for the second 
491.2 	year.
491.3 	Tenant Hotline Services Program. $50,000 
491.4 	each year is for a grant to HOME Line for 
491.5 	the tenant hotline services program. This is a 
491.6 	onetime appropriation.

491.7
491.8	Subd. 5.Children and Economic Assistance 
Management
 					
491.9 	The amounts that may be spent from the 
491.10 	appropriation for each purpose are as follows:

491.11
491.12	(a) Children and Economic Assistance 
Administration

491.13	Appropriations by Fund
	
491.14	General
	9,888,000
	9,956,000
	
491.15	Federal TANF
	1,196,000
	1,196,000
	
491.16 	Base Adjustment. The general fund 
491.17 	base is $9,829,000 in fiscal year 2010 and 
491.18 	$9,741,000 in fiscal year 2011.

491.19
491.20	(b) Children and Economic Assistance 
Operations

491.21	Appropriations by Fund
	
491.22	General
	35,667,000
	36,023,000
	
491.23	Health Care Access
	350,000
	361,000
	
491.24 	Financial Institution Data Match and 
491.25 	Payment of Fees. The commissioner is 
491.26 	authorized to allocate up to $310,000 each 
491.27 	year in fiscal years 2008 and 2009 from the 
491.28 	PRISM special revenue account to make 
491.29 	payments to financial institutions in exchange 
491.30 	for performing data matches between account 
491.31 	information held by financial institutions 
491.32 	and the public authority's database of child 
491.33 	support obligors as authorized by Minnesota 
491.34 	Statutes, section 13B.06, subdivision 7.
492.1 	Base Adjustment. The general fund base 
492.2 	is $35,967,000 in each of fiscal years 2010 
492.3 	and 2011.

492.4	Subd. 6.Basic Health Care Grants
 					
492.5 	The amounts that may be spent from the 
492.6 	appropriation for each purpose are as follows:

492.7	(a) MinnesotaCare Grants

492.8	Health Care Access
	391,818,000
	470,951,000
	
492.9 	HealthMatch Delay. Of this appropriation, 
492.10 	$2,560,000 the first year and $21,735,000 
492.11 	the second year are for the MinnesotaCare 
492.12 	program costs related to a six-month delay in 
492.13 	implementation of the HealthMatch program.

492.14
492.15	(b) MA Basic Health Care - Families and 
Children

492.16	Appropriations by Fund
	
492.17	General
	740,771,000
	843,211,000
	
492.18	Health Care Access
	1,672,000
	-0-

492.19
492.20	(c) MA Basic Health Care - Elderly and 
Disabled

492.21	General
	998,640,000
	1,107,432,000
	
492.22 	Provider-Directed Care Coordination. In 
492.23 	addition to medical assistance reimbursement 
492.24 	under Minnesota Statutes, sections 
492.25 	256B.0625 and 256B.76, clinics participating 
492.26 	in provider-directed care coordination under 
492.27 	Minnesota Statutes, section 256B.0625, also 
492.28 	receive a monthly payment per client when 
492.29 	the clinic serves an eligible client. The 
492.30 	payments across the program must average 
492.31 	$50 per month per client.
492.32 	The commissioner must serve: an additional 
492.33 	100 persons in the MR/RC waiver program; 
492.34 	an additional 100 persons in fiscal year 
493.1 	2008 and 200 persons in fiscal year 2009 
493.2 	in the family support grant program under 
493.3 	Minnesota Statutes, section 252.32; and an 
493.4 	additional 100 persons in fiscal year 2008 
493.5 	and 200 persons in fiscal year 2009 in the 
493.6 	semi-independent living services program 
493.7 	under Minnesota Statutes, section 252.275.
493.8 	County CADI allocation adjustment.
493.9 	(1) The commissioner shall adjust 2007 
493.10 	home and community-based allocations 
493.11 	under Minnesota Statutes, section 256B.49, 
493.12 	to qualifying counties that transferred 
493.13 	persons to the community alternatives for 
493.14 	disabled individuals (CADI) waiver program 
493.15 	under Laws 2006, chapter 282, article 20, 
493.16 	section 35. The adjustment shall reflect 
493.17 	the amount that county-authorized funding 
493.18 	for CADI waiver services exceeded the 
493.19 	allowable amount as shown in the Medicaid 
493.20 	Management Information System (MMIS) 
493.21 	on March 1, 2007.
493.22 	(2) A county that may qualify under 
493.23 	paragraph (1) shall apply to the commissioner 
493.24 	by June 10, 2007. Following a review of the 
493.25 	county request and the MMIS documentation, 
493.26 	the commissioner shall adjust the county 
493.27 	allocation, as appropriate, by June 25, 2007.
493.28 	(3) The amounts provided to a county under 
493.29 	this section shall become part of the county's 
493.30 	base level state allocation for the CADI 
493.31 	waiver for the biennium beginning July 1, 
493.32 	2007.
493.33 	(4) This rider is effective the day following 
493.34 	final enactment.

493.35	(d) General Assistance Medical Care Grants

494.1	General
	239,216,000
	251,730,000

494.2	(e) Other Health Care Grants

494.3	General
	1,721,000
	1,671,000
	
494.4	Health Care Access
	150,000
	150,000
	
494.5 	Community-Based Health Care 
494.6 	Demonstration Project. Of the general 
494.7 	fund appropriation, $212,000 in fiscal year 
494.8 	2007 and $212,000 in fiscal year 2008 are 
494.9 	to the commissioner to be transferred to the 
494.10 	commissioner of health for the demonstration 
494.11 	project grant described in Minnesota 
494.12 	Statutes, section 62Q.80, subdivision 1a. 
494.13 	This appropriation shall remain part of 
494.14 	base level funding until June 30, 2012. 
494.15 	Notwithstanding any contrary provision in 
494.16 	this article, this rider expires July 1, 2012.
494.17 	Health Care Payment Reform Pilot. Of 
494.18 	the general fund appropriation, $750,000 
494.19 	in fiscal year 2009 is for the health care 
494.20 	payment reform pilot project. Base level 
494.21 	funding for this program is $750,000 in 2010 
494.22 	and $0 in 2011.
494.23 	Patient Incentive Programs. Of the general 
494.24 	fund appropriation, $500,000 in fiscal year 
494.25 	2008 and $500,000 in fiscal year 2009 are 
494.26 	for patient incentive programs.
494.27 	Base Adjustment. The general fund base is 
494.28 	$1,671,000 in fiscal year 2010 and $921,000 
494.29 	in fiscal year 2011.
494.30 	Oral Health Care Innovations Grants. (a) 
494.31 	Of the general fund appropriation, $500,000 
494.32 	for the fiscal year beginning July 1, 2007, 
494.33 	is to award competitive oral health care 
494.34 	innovations grants to organizations described 
495.1 	in Minnesota Statutes, section 256B.76, 
495.2 	paragraph (b), clause (4), or coalitions of 
495.3 	such organizations, providing access to oral 
495.4 	health services for low-income and uninsured 
495.5 	persons. The commissioner shall award one 
495.6 	grant for a project to develop a nonprofit 
495.7 	dental clinic serving public program 
495.8 	recipients and uninsured persons in Beltrami 
495.9 	County; one grant for the maintenance of 
495.10 	nonprofit dental clinics providing oral health 
495.11 	care services to children ages birth to 18 in St. 
495.12 	Louis County; one grant for the bright smiles 
495.13 	program to increase access to oral health 
495.14 	care for low-income and immigrant children, 
495.15 	ages birth to five years, and their families 
495.16 	in underserved areas in Minneapolis; and 
495.17 	one grant to coordinate dental referrals from 
495.18 	collaborative practice hygienists working 
495.19 	with Head Start programs in underserved 
495.20 	areas of the state outside the seven-county 
495.21 	metropolitan area.
495.22 	(b) This grant shall not become part of base 
495.23 	level funding.
495.24 	State Health Policies Grant. Of the 
495.25 	general fund appropriation, $300,000 in 
495.26 	fiscal year 2008 is to provide a grant to a 
495.27 	research center associated with a safety net 
495.28 	hospital and county-affiliated health system 
495.29 	to develop the capabilities necessary for 
495.30 	evaluating the effects of changes in state 
495.31 	health policies on low-income and uninsured 
495.32 	individuals, including the impact on state 
495.33 	health care program costs, health outcomes, 
495.34 	cost-shifting to different units and levels 
495.35 	of government, and utilization patterns 
495.36 	including use of emergency room care and 
496.1 	hospitalization rates. The center shall report 
496.2 	on the use of this money by December 1, 
496.3 	2008, to the chairs of the senate and house 
496.4 	of representatives committees with relevant 
496.5 	jurisdiction.

496.6	Subd. 7.Health Care Management
 					
496.7 	The amounts that may be spent from the 
496.8 	appropriation for each purpose are as follows:

496.9	(a) Health Care Policy Administration

496.10	Appropriations by Fund
	
496.11	General
	10,993,000
	11,370,000
	
496.12	Health Care Access
	2,335,000
	2,871,000
	
496.13 	Minnesota Senior Health Options 
496.14 	Reimbursement. Federal administrative 
496.15 	reimbursement resulting from the Minnesota 
496.16 	senior health options project is appropriated 
496.17 	to the commissioner for this activity.
496.18 	Disproportionate Share Hospital Payment 
496.19 	Formulas. The commissioner is prohibited 
496.20 	from altering formulas for disbursement of 
496.21 	disproportionate share hospital funds under 
496.22 	the disproportionate share hospital program 
496.23 	by rule, bulletin, or any other administrative 
496.24 	method without explicit legislative authority.
496.25 	Utilization Review. Federal administrative 
496.26 	reimbursement resulting from prior 
496.27 	authorization and inpatient admission 
496.28 	certification by a professional review 
496.29 	organization is dedicated to the commissioner 
496.30 	for these purposes. A portion of these funds 
496.31 	must be used for activities to decrease 
496.32 	unnecessary pharmaceutical costs in medical 
496.33 	assistance.
497.1 	Base Adjustment. The health care access 
497.2 	fund base is $3,409,000 in fiscal year 2010 
497.3 	and $3,354,000 in fiscal year 2011, for health 
497.4 	care administration.
497.5 	Base Adjustment. The general fund base 
497.6 	is $11,164,000 in fiscal year 2010 and 
497.7 	$10,770,000 in fiscal year 2011.

497.8	(b) Health Care Operations

497.9	Appropriations by Fund
	
497.10	General
	21,941,000
	21,874,000
	
497.11	Health Care Access
	22,492,000
	23,114,000
	
497.12 	Base Adjustment. The general fund base 
497.13 	is $21,839,000 in each of fiscal years 2010 
497.14 	and 2011. The health care access fund 
497.15 	base is $24,024,000 in fiscal year 2010 and 
497.16 	$23,627,000 in fiscal year 2011.
497.17 	Outreach Funding. The following 
497.18 	appropriations are to the commissioner for 
497.19 	the Minnesota health care outreach program 
497.20 	under Minnesota Statutes, section 256.962:
497.21 	(1) $950,000 the first year and $1,000,000 
497.22 	the second year from the health care access 
497.23 	fund for a statewide outreach campaign 
497.24 	under Minnesota Statutes, section 256.962, 
497.25 	subdivision 1;
497.26 	(2) $700,000 each year from the general 
497.27 	fund and $300,000 each year from the health 
497.28 	care access fund for the incentive program 
497.29 	under Minnesota Statutes, section 256.962, 
497.30 	subdivision 5; and
497.31 	(3) $150,000 each year from the health 
497.32 	care access fund for a grant to a nonprofit 
497.33 	organization to provide a statewide toll-free 
498.1 	number under Minnesota Statutes, section 
498.2 	256.962, subdivision 4.

498.3	Subd. 8.Continuing Care Grants
 					
498.4 	The amounts that may be spent from the 
498.5 	appropriation for each purpose are as follows: 

498.6	(a) Aging and Adult Services Grants

498.7	General
	15,225,000
	15,675,000
	
498.8 	Information and Assistance 
498.9 	Reimbursement. Federal administrative 
498.10 	reimbursement obtained from information 
498.11 	and assistance services provided by the 
498.12 	Senior LinkAge Line to people who are 
498.13 	identified as eligible for medical assistance 
498.14 	is appropriated to the commissioner for this 
498.15 	activity.
498.16 	Senior Companion Program. Of the 
498.17 	general fund appropriation, $166,000 each 
498.18 	year is for the senior companion program 
498.19 	under Minnesota Statutes, section 256.977.
498.20 	Volunteer Senior Citizens. Of the general 
498.21 	fund appropriation, $167,000 each year is 
498.22 	for the volunteer programs for retired senior 
498.23 	citizens under Minnesota Statutes, section 
498.24 	256.9753.
498.25 	Foster Grandparent Program. Of the 
498.26 	general fund appropriation, $166,000 each 
498.27 	year is for the foster grandparent program in 
498.28 	Minnesota Statutes, section 256.976.
498.29 	Senior Nutrition. Of the general fund 
498.30 	appropriation, $250,000 in fiscal year 
498.31 	2008 and $250,000 in fiscal year 2009 are 
498.32 	for the senior nutrition programs under 
498.33 	Minnesota Statutes, section 256.9752. 
498.34 	The commissioner shall give priority to 
499.1 	increase services to: (1) persons facing 
499.2 	language or cultural barriers, (2) persons with 
499.3 	special diets, (3) persons living in isolated 
499.4 	rural areas, and (4) other hard-to-serve 
499.5 	populations.
499.6 	Kinship Navigator Program. Of the 
499.7 	general fund appropriation, $175,000 in 
499.8 	fiscal year 2008 and $175,000 in fiscal year 
499.9 	2009 is to the commissioner for a two-year 
499.10 	demonstration grant, to be transferred to a 
499.11 	nonprofit statewide organization advocating 
499.12 	for, supporting, and providing information 
499.13 	and resources to individuals raising their 
499.14 	grandchildren, other related children, or 
499.15 	children of friends for purposes of providing 
499.16 	support to grandparents or relatives who are 
499.17 	raising kinship children. The demonstration 
499.18 	grant sites must include a central site in the 
499.19 	metropolitan area and another site in the 
499.20 	Bemidji region. The support must provide a 
499.21 	one-stop services program. The services that 
499.22 	may be provided include, but are not limited 
499.23 	to, legal services, education, information, 
499.24 	family activities, support groups, mental 
499.25 	health access, advocacy, mentors, and 
499.26 	information related to foster care licensing. 
499.27 	The funds may also be used for a media 
499.28 	campaign to inform kinship families about 
499.29 	available information and services, support 
499.30 	sites, and other program development. 
499.31 	For the biennium beginning July 1, 2009, 
499.32 	base level funding for these grants shall be 
499.33 	$160,000 each year.
499.34 	Reverse Mortgage Incentive Program.
499.35 	Of the general fund appropriation to the 
499.36 	commissioner for the biennium beginning 
500.1 	July 1, 2007, the following amounts are for 
500.2 	the purposes listed:
500.3 	(1) $120,000 the first year and $120,000 the 
500.4 	second year are for costs associated with the 
500.5 	reverse mortgage incentive program; and
500.6 	(2) $39,000 each year is to be transferred 
500.7 	to the commissioner of the Minnesota 
500.8 	Housing Finance Agency for the purposes of 
500.9 	Minnesota Statutes, section 462A.05.
500.10 	Base Adjustment. The general fund base 
500.11 	is $15,840,000 in each of fiscal years 2010 
500.12 	and 2011.

500.13	(b) Alternative Care Grants

500.14	General
	50,063,000
	52,200,000
	
500.15 	Alternative Care Transfer. Any money 
500.16 	allocated to the alternative care program that 
500.17 	is not spent for the purposes indicated does 
500.18 	not cancel but is transferred to the medical 
500.19 	assistance account.
500.20 	Base Adjustment. The general fund 
500.21 	base is $53,058,000 in fiscal year 2010 
500.22 	and $53,295,000 in fiscal year 2011 for 
500.23 	alternative care grants.

500.24
500.25	(c) Medical Assistance Grants - Long-Term 
Care Facilities

500.26	General
	500,957,000
	509,347,000
	
500.27 	Long-Term Care Consultation Funding 
500.28 	Increase. For the rate year beginning 
500.29 	October 1, 2008, the county long-term 
500.30 	care consultation allocations in Minnesota 
500.31 	Statutes, section 256B.0911, subdivision 
500.32 	6, must be increased based on the number 
500.33 	of transitional long-term care consultation 
500.34 	visits projected by the commissioner in 
501.1 	each county. For the rate year beginning 
501.2 	October 1, 2009, final allocations must be 
501.3 	determined based on the average between 
501.4 	the actual number of transitional long-term 
501.5 	care visits that were conducted in the prior 
501.6 	12-month period and the projected number 
501.7 	of consultations that will be provided in 
501.8 	the rate year beginning October 1, 2009. 
501.9 	Notwithstanding any contrary provision in 
501.10 	this article, this paragraph expires June 30, 
501.11 	2010.
501.12 	Nursing Facility Sprinkler Systems. Of the 
501.13 	general fund appropriation, $3,000,000 the 
501.14 	first year is to reimburse the costs of nursing 
501.15 	facility sprinkler systems under Minnesota 
501.16 	Statutes, section 256B.434, subdivision 4, 
501.17 	paragraph (e).
501.18 	Nursing Home Moratorium Exceptions.
501.19 	During fiscal year 2008, the commissioner of 
501.20 	health may approve moratorium exception 
501.21 	projects under Minnesota Statutes, section 
501.22 	144A.073, for which the full annualized 
501.23 	state share of medical assistance costs does 
501.24 	not exceed $3,000,000. During fiscal year 
501.25 	2009, the commissioner of health may 
501.26 	approve moratorium exception projects 
501.27 	under Minnesota Statutes, section 144A.073, 
501.28 	for which the full annualized state share of 
501.29 	medical assistance costs does not exceed 
501.30 	$3,000,000 less the amount approved during 
501.31 	the first year. Priority shall be given to 
501.32 	proposals that entail:
501.33 	(1) complete building replacement in 
501.34 	conjunction with reductions in the number of 
501.35 	beds in a county, with greater weight given 
502.1 	to projects in counties with a greater than 
502.2 	average number of beds per 1,000 elderly;
502.3 	(2) technology improvements;
502.4 	(3) improvements in life safety;
502.5 	(4) construction of nursing facilities that are 
502.6 	part of senior services campuses; and
502.7 	(5) improvements in the work environment.

502.8
502.9	(d) Medical Assistance Grants - Long-Term 
Care Waivers and Home Care Grants

502.10	General
	964,179,000
	1,087,867,000

502.11	(e) Mental Health Grants

502.12	Appropriations by Fund
	
502.13	General
	59,156,000
	65,760,000
	
502.14	Health Care Access
	750,000
	750,000
	
502.15	Lottery Prize
	1,933,000
	1,633,000
	
502.16 	Mental Health Crisis Services. Of this 
502.17 	general fund appropriation, $1,500,000 in 
502.18 	fiscal year 2008 and $3,500,000 in fiscal 
502.19 	year 2009 are to the commissioner of human 
502.20 	services for statewide funding of adult  mental 
502.21 	health crisis services.  Providers must utilize 
502.22 	all available funding streams.
502.23 	Adult Mental Health Evidence-Based 
502.24 	and Best Practices. Of this general fund 
502.25 	appropriation, $750,000 in fiscal year 2008 
502.26 	and $1,500,000 in fiscal year 2009 are to 
502.27 	the commissioner of human services for 
502.28 	adult mental health evidence-based and 
502.29 	best practices including, but not limited 
502.30 	to, Assertive Community Treatment and 
502.31 	Integrated Dual Diagnosis Treatment 
502.32 	services.  The commissioner shall require 
502.33 	grantees to utilize all available third-party 
503.1 	reimbursement sources as a condition of 
503.2 	using state grant funds.
503.3 	Culturally Specific Mental Health 
503.4 	Treatment Grants. Of this general fund 
503.5 	appropriation, $150,000 in fiscal year 2008 
503.6 	and $600,000 in fiscal year 2009 are to the 
503.7 	commissioner of human services for adult 
503.8 	mental health grants to support increased 
503.9 	availability of mental health services for 
503.10 	persons from cultural and ethnic minorities 
503.11 	within the state. The commissioner shall use 
503.12 	at least 20 percent of these funds to help 
503.13 	members of cultural and ethnic minority 
503.14 	communities to become qualified mental 
503.15 	health professionals and practitioners. The 
503.16 	commissioner shall assist grantees to meet 
503.17 	third-party credentialing requirements 
503.18 	and require them to utilize all available 
503.19 	third-party reimbursement sources as a 
503.20 	condition of using state grant funds.
503.21 	Mental Health Services for Adults with 
503.22 	Special Treatment Needs. Of this general 
503.23 	fund appropriation, $100,000 in fiscal year 
503.24 	2008 and $400,000 in fiscal year 2009 are to 
503.25 	the commissioner of human services for adult 
503.26 	mental health grants to support increased 
503.27 	availability of mental health services for 
503.28 	adults with special treatment needs.  These 
503.29 	shall include, but not be limited to: victims of 
503.30 	trauma, including persons subjected to abuse 
503.31 	or neglect, veterans and their families, and 
503.32 	refugee populations; person's with complex 
503.33 	treatment needs, such as eating disorders; 
503.34 	and those with low incidence disorders.
504.1 	Supportive Housing Services for Adults 
504.2 	with Mental Illness. Of this general fund 
504.3 	appropriation, $1,500,000 in fiscal year 2008 
504.4 	and $3,000,000 in fiscal year 2009 are to the 
504.5 	commissioner of human services for adult 
504.6 	mental health grants to support increased 
504.7 	availability of a range of housing options 
504.8 	with supports for persons with serious mental 
504.9 	illness.
504.10 	Base Adjustment. Effective fiscal year 
504.11 	2009, the general fund base for adult mental 
504.12 	health grants is increased by $750,000 and 
504.13 	the health care access fund base for adult 
504.14 	mental health grants is reduced by $750,000.
504.15 	National Council on Problem Gambling.
504.16 	(1) $225,000 in fiscal year 2008 and $225,000 
504.17 	in fiscal year 2009 are appropriated from 
504.18 	the lottery prize fund to the commissioner 
504.19 	of human services for a grant to the state 
504.20 	affiliate recognized by the National Council 
504.21 	on Problem Gambling. The affiliate must 
504.22 	provide services to increase public awareness 
504.23 	of problem gambling, education, and training 
504.24 	for individuals and organizations providing 
504.25 	effective treatment services to problem 
504.26 	gamblers and their families, and research 
504.27 	relating to problem gambling. These 
504.28 	services must be complementary to and not 
504.29 	duplicative of the services provided through 
504.30 	the problem gambling program administered 
504.31 	by the commissioner of human services. This 
504.32 	grant does not prevent the commissioner 
504.33 	from regular monitoring and oversight of the 
504.34 	grant or the ability to reallocate the funds to 
504.35 	other services within the problem gambling 
505.1 	program for nonperformance of duties by 
505.2 	the grantee.
505.3 	(2) Of this appropriation, $100,000 in 
505.4 	fiscal year 2008 and $100,000 in fiscal year 
505.5 	2009 are contingent on the contribution 
505.6 	of nonstate matching funds. Matching 
505.7 	funds may be either cash or qualifying 
505.8 	in-kind contributions. The commissioner of 
505.9 	finance may disburse the state portion of the 
505.10 	matching funds in increments of $25,000 
505.11 	upon receipt of a commitment for an equal 
505.12 	amount of matching nonstate funds. The 
505.13 	general fund base shall be $100,000 in fiscal 
505.14 	year 2010 and $100,000 in fiscal year 2011.
505.15 	(3) $100,000 in fiscal year 2008 is 
505.16 	appropriated from the lottery prize fund to 
505.17 	the commissioner of human services for a 
505.18 	grant or grants to be awarded competitively 
505.19 	to develop programs and services for 
505.20 	problem gambling treatment, prevention, 
505.21 	and education in immigrant communities. 
505.22 	This appropriation is available until June 
505.23 	30, 2009, at which time the project must 
505.24 	be completed and final products delivered, 
505.25 	unless an earlier completion date is specified 
505.26 	in the work program.
505.27 	Compulsive Gambling. $300,000 in fiscal 
505.28 	year 2008 and $100,000 in fiscal year 2009 
505.29 	are appropriated from the lottery prize fund 
505.30 	to the commissioner of human services for 
505.31 	purposes of compulsive gambling education, 
505.32 	assessment, and treatment under Minnesota 
505.33 	Statutes, section 245.98.
505.34 	Compulsive Gambling Study. $100,000 
505.35 	in fiscal year 2008 is to continue the 
506.1 	study currently being done on compulsive 
506.2 	gambling treatment effectiveness and 
506.3 	long-term effects of gambling.
506.4 	Base Adjustment. The general fund base 
506.5 	is $62,940,000 in each of fiscal years 2010 
506.6 	and 2011.
506.7 	Base Adjustment. The lottery prize fund 
506.8 	base is $1,508,000 in each of fiscal years 
506.9 	2010 and 2011.

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

506.11	General
	1,932,000
	2,368,000
	
506.12 	Hearing Loss Mentors. Of the general 
506.13 	fund appropriation, $40,000 each year is to 
506.14 	provide mentors who have a hearing loss 
506.15 	to parents of newly identified infants and 
506.16 	children with hearing loss.
506.17 	Base Adjustment. The general fund base is 
506.18 	$2,387,000 in each of fiscal years 2010 and 
506.19 	2011.

506.20	(g) Chemical Dependency Entitlement Grants

506.21	General
	78,749,000
	89,201,000

506.22
506.23	(h) Chemical Dependency Nonentitlement 
Grants

506.24	General
	1,605,000
	1,805,000
	
506.25	TANF
	150,000
	150,000
	
506.26 	Methamphetamine Abuse Grants. Of the 
506.27 	general fund appropriation, $175,000 in the 
506.28 	first year and $375,000 in the second year 
506.29 	are for grants to existing programs that treat 
506.30 	methamphetamine abuse, and the abuse 
506.31 	of other substances in Carlton, Faribault, 
506.32 	Martin, Olmsted, and Anoka Counties, that 
506.33 	received grant funds under Laws 2005, 
507.1 	chapter 136, article 1, section 9, subdivision 
507.2 	6. The commissioner shall administer the 
507.3 	grants to programs that the commissioner 
507.4 	deems successful, and may discontinue 
507.5 	grants to programs after an evaluation of 
507.6 	the program and a determination by the 
507.7 	commissioner that the program should no 
507.8 	longer receive funds. This appropriation 
507.9 	shall not become part of base level funding.
507.10 	Base Adjustment. The general fund base is 
507.11 	$1,055,000 in each of fiscal years 2010 and 
507.12 	2011.

507.13	(i) Other Continuing Care Grants

507.14	General
	22,253,000
	18,580,000
	
507.15 	Native American Juvenile Treatment 
507.16 	Center. Of the general fund appropriation, 
507.17 	$50,000 is to conduct a feasibility study 
507.18 	of and to predesign a Native American 
507.19 	juvenile treatment center on or near the 
507.20 	White Earth Reservation. The facility must 
507.21 	house and treat Native American juveniles 
507.22 	and provide culturally specific programming 
507.23 	to juveniles placed in the treatment center. 
507.24 	The commissioner of human services may 
507.25 	contract with parties who have experience 
507.26 	in the design and construction of juvenile 
507.27 	treatment centers to assist in the feasibility 
507.28 	study and predesign. On or before January 
507.29 	15, 2008, the commissioner shall present 
507.30 	the results of the feasibility study and the 
507.31 	predesign of the facility to the chairs of house 
507.32 	of representatives and senate committees 
507.33 	having jurisdiction over human services 
507.34 	finance, public safety finance, and capital 
507.35 	investment.
508.1 	Leech Lake Youth Treatment Center. Of 
508.2 	the general fund appropriation, $75,000 in 
508.3 	fiscal year 2008 and $75,000 in fiscal year 
508.4 	2009 are for a grant to the Leech Lake Youth 
508.5 	Treatment Center project partners, in order 
508.6 	to pay the salaries and other directly related 
508.7 	costs associated with the development of this 
508.8 	project. This is a onetime appropriation.
508.9 	Repayment. For the fiscal year ending June 
508.10 	30, 2008, $4,302,000 is appropriated to the 
508.11 	commissioner of human services to repay 
508.12 	the amount of overspending in the waiver 
508.13 	program for persons with developmental 
508.14 	disabilities incurred by Fillmore, Steele, and 
508.15 	St. Louis Counties in calendar years 2004 
508.16 	and 2005.
508.17 	Department of Employment and Economic 
508.18 	Development Transfer. For fiscal year 2008, 
508.19 	the commissioner of  finance shall transfer 
508.20 	$200,000 from the methamphetamine 
508.21 	abatement loan fund to the commissioner 
508.22 	of human services for methamphetamine 
508.23 	treatment programs.
508.24 	Base Adjustment. The general fund base 
508.25 	is $18,956,000 in fiscal year 2010 and 
508.26 	$19,012,000 in fiscal year 2011 for other 
508.27 	continuing care grants.

508.28	Subd. 9.Continuing Care Management

508.29	General
	19,722,000
	19,914,000
	
508.30
508.31	State Government 
Special Revenue
	122,000
	125,000
	
508.32	Health Care Access
	293,000
	-0-
	
508.33	Lottery Prize
	252,000
	157,000
	
508.34 	Quality Assurance System Expansion. Of 
508.35 	the general fund appropriation, $200,000 
509.1 	in fiscal year 2008 and $200,000 in fiscal 
509.2 	year 2009 are to develop a statewide quality 
509.3 	assurance and improvement system under 
509.4 	Minnesota Statutes, section 256B.096, for 
509.5 	persons receiving disability services. Any 
509.6 	unspent portion of the appropriation for 
509.7 	the first year shall not cancel but shall be 
509.8 	available for the second year. These are 
509.9 	onetime appropriations.
509.10 	Base Adjustment. The general fund base 
509.11 	is $19,745,000 in fiscal year 2010 and 
509.12 	$19,835,000 in fiscal year 2011.
509.13 	Disability Linkage Line. Of the general 
509.14 	fund appropriation, $469,000 in fiscal year 
509.15 	2008 and $626,000 in fiscal year 2009 are to 
509.16 	establish and maintain the disability linkage 
509.17 	line.
509.18 	Home Health Reimbursement Study. (1) 
509.19 	Of the general fund appropriation, $100,000 
509.20 	in fiscal year 2008 is to the commissioner to 
509.21 	contract with a Minnesota-based, nonprofit 
509.22 	quality improvement organization that 
509.23 	collaborates with providers and consumers 
509.24 	in health improvement activities, for the 
509.25 	purpose of conducting an independent 
509.26 	analysis of the reimbursement methodologies 
509.27 	for home health services provided to 
509.28 	enrollees in the Minnesota senior health 
509.29 	options and Minnesota disability health 
509.30 	options programs.
509.31 	(2) The analysis of reimbursement 
509.32 	methodologies shall include, at a minimum, 
509.33 	a review of:
509.34 	(i) any limitations on flexibility in services or 
509.35 	technology for the home health provider;
510.1 	(ii) the Medicare program reimbursement 
510.2 	methodologies, including possible 
510.3 	alternatives, and Medicare benefits;
510.4 	(iii) potential access issues raised by current 
510.5 	reimbursement methodologies; and
510.6 	(iv) incentives, including episodic care 
510.7 	reimbursement methodologies, to promote 
510.8 	best practices and achieve identified clinical 
510.9 	outcomes.
510.10 	(3) The analysis and any supporting 
510.11 	recommendations shall be presented to the 
510.12 	commissioner by December 1, 2007, and 
510.13 	to the chairs of the appropriate legislative 
510.14 	committees by December 15, 2007. In no 
510.15 	event shall the study disclose any specific 
510.16 	reimbursement amount or methodologies 
510.17 	attributable to an individual health carrier.
510.18 	(4) In conducting its analysis, the 
510.19 	organization described in paragraph (a) 
510.20 	shall consult with the commissioner, the 
510.21 	Minnesota Home Care Association, managed 
510.22 	care organizations, and other interested 
510.23 	home health entities and advocates, and 
510.24 	shall convene the parties to discuss pertinent 
510.25 	issues.

510.26	Subd. 10.State-Operated Services
 					
510.27 	Remembering With Dignity Project. (1) 
510.28 	$200,000 is appropriated from the general 
510.29 	fund to the commissioner of human services 
510.30 	to be available until June 30, 2009, to make a 
510.31 	grant to Advocating Change Together for the 
510.32 	purposes of the Remembering With Dignity 
510.33 	project in paragraph (2).
511.1 	(2) As part of the Remembering With Dignity 
511.2 	project, the grant recipient shall:
511.3 	(i) conduct necessary research on persons 
511.4 	buried in state cemeteries who were residents 
511.5 	of state hospitals or regional treatment 
511.6 	centers and buried in numbered or unmarked 
511.7 	graves;
511.8 	(ii) purchase and install headstones that are 
511.9 	properly inscribed with their names on the 
511.10 	graves of those persons; and
511.11 	(iii) collaborate with community groups 
511.12 	and state and local government agencies to 
511.13 	build community involvement and public 
511.14 	awareness, ensure public access to the 
511.15 	graves, and ensure appropriate perpetual 
511.16 	maintenance of state cemeteries.
511.17 	Transfer Authority Related to 
511.18 	State-Operated Services. Money 
511.19 	appropriated to finance state-operated 
511.20 	services programs and administrative 
511.21 	services may be transferred between fiscal 
511.22 	years of the biennium with the approval of 
511.23 	the commissioner of finance.

511.24	(a) Mental Health Services

511.25	General
	116,185,000
	119,507,000
	
511.26 	Appropriation Limitation. No part of 
511.27 	the appropriation in this article to the 
511.28 	commissioner for mental health treatment 
511.29 	services at the regional treatment centers 
511.30 	shall be used for the Minnesota sex offender 
511.31 	program.
511.32 	Community Behavioral Health Hospitals.
511.33 	Notwithstanding Minnesota Statutes, section 
511.34 	246.51, subdivision 1, a determination order 
512.1 	for clients in a community behavioral health 
512.2 	hospital operated by the commissioner is 
512.3 	only required when a client's third-party 
512.4 	coverage has been exhausted.

512.5	(b) Minnesota Sex Offender Services

512.6	General
	67,614,000
	62,569,000

512.7
512.8	(c) Minnesota Security Hospital and METO 
Services

512.9	General
	82,495,000
	84,505,000
	
512.10 	Minnesota Security Hospital. For the 
512.11 	purposes of enhancing the safety of 
512.12 	the public, improving supervision, and 
512.13 	enhancing community-based mental health 
512.14 	treatment, state-operated services may 
512.15 	establish additional community capacity 
512.16 	for providing treatment and supervision 
512.17 	of clients who have been ordered into 
512.18 	less restrictive alternative care from the 
512.19 	state-operated services transitional services 
512.20 	program consistent with Minnesota Statutes, 
512.21 	section 246.014.

512.22	Sec. 4. COMMISSIONER OF HEALTH

512.23	Subdivision 1.Total Appropriation
 	$
	170,604,000
	$
	157,130,000

512.24	Appropriations by Fund
	
512.25		2008
	2009
	
512.26	General
	94,762,000
	82,467,000
	
512.27
512.28	State Government 
Special Revenue
	43,796,000
	42,799,000
	
512.29	Health Care Access
	20,628,000
	20,135,000
	
512.30	Federal TANF
	11,418,000
	11,733,000
	
512.31 	Pay for Performance. (a) For the biennium 
512.32 	beginning July 1, 2009, of the general fund 
512.33 	appropriation, $91,000 each year shall 
512.34 	be made available to the commissioner 
512.35 	of health on January 1, 2011, only after 
513.1 	notification by the commissioner of health to 
513.2 	the commissioner of finance and to the chairs 
513.3 	of the relevant house of representatives and 
513.4 	senate finance and policy committees that the 
513.5 	state has met by that date the health disparity 
513.6 	elimination goals established in Minnesota 
513.7 	Statutes, section 145.928, subdivision 1.
513.8 	(b) Regardless of whether these 
513.9 	appropriations are made available to 
513.10 	the commissioner of health, they shall be 
513.11 	part of base level funding for the biennium 
513.12 	beginning July 1, 2011.
513.13 	(c) Notwithstanding any contrary provision 
513.14 	of this article, this rider shall not expire.
513.15 	Transfer from the State Government 
513.16 	Special Revenue Fund. During the 
513.17 	fiscal year beginning July 1, 2007, the 
513.18 	commissioner of finance shall transfer 
513.19 	$7,200,000 from the state government 
513.20 	special revenue fund to the general fund.

513.21
513.22	Subd. 2.Community and Family Health 
Promotion

513.23	Appropriations by Fund
	
513.24	General
	45,467,000
	45,211,000
	
513.25
513.26	State Government 
Special Revenue
	870,000
	875,000
	
513.27	Health Care Access
	3,550,000
	3,586,000
	
513.28	Federal TANF
	8,735,000
	8,735,000
	
513.29 	TANF Appropriations. (a) $3,579,000 of 
513.30 	the TANF funds is appropriated in each year 
513.31 	of the biennium to the commissioner for 
513.32 	home visiting and nutritional services listed 
513.33 	under Minnesota Statutes, section 145.882, 
513.34 	subdivision 7, clauses (6) and (7). Funding 
513.35 	shall be distributed to community health 
514.1 	boards based on Minnesota Statutes, section 
514.2 	145A.131, subdivision 1.
514.3 	(b) $4,000,000 in the first year and $4,000,000 
514.4 	in the second year are appropriated to the 
514.5 	commissioner of health for the family 
514.6 	home visiting grant program according to 
514.7 	Minnesota Statutes, section 145A.17. The 
514.8 	commissioner may use five percent of the 
514.9 	funds appropriated in each fiscal year to 
514.10 	conduct the ongoing evaluations required 
514.11 	under Minnesota Statutes, section 145A.17, 
514.12 	subdivision 7, and may use ten percent of 
514.13 	the funds appropriated each fiscal year to 
514.14 	provide training and technical assistance as 
514.15 	required under Minnesota Statutes, section 
514.16 	145A.17, subdivisions 4 and 5.
514.17 	TANF Carryforward. Any unexpended 
514.18 	balance of the TANF appropriation in the 
514.19 	first year of the biennium does not cancel but 
514.20 	is available for the second year.
514.21 	Loan Forgiveness. $400,000 in fiscal 
514.22 	year 2010 and $400,000 in fiscal year 
514.23 	2011 from the state government special 
514.24 	revenue fund are to the commissioner 
514.25 	for the loan forgiveness program under 
514.26 	Minnesota Statutes, section 144.1501. This 
514.27 	appropriation shall not become part of base 
514.28 	level funding for the biennium beginning 
514.29 	July 1, 2011. Notwithstanding any contrary 
514.30 	provision in this article, this rider expires 
514.31 	December 31, 2011.
514.32 	MN ENABL. Base level funding for the MN 
514.33 	ENABL program, under Minnesota Statutes, 
514.34 	section 145.9255, is reduced by $220,000 
515.1 	each year of the biennium beginning July 1, 
515.2 	2007.
515.3 	Fetal Alcohol Spectrum Disorder.
515.4 	$900,000 each year is added to the base for 
515.5 	fetal alcohol spectrum disorder.
515.6 	(1) On July 1 of each fiscal year, the 
515.7 	portion of the general fund appropriation 
515.8 	to the commissioner of health for fetal 
515.9 	alcohol spectrum disorder administration 
515.10 	and grants shall be transferred to a 
515.11 	statewide organization that focuses solely 
515.12 	on prevention of and intervention with fetal 
515.13 	alcohol spectrum disorder as follows:
515.14 	(i) on July 1, 2007, $2,090,000; and
515.15 	(ii) on July 1, 2008,  $2,090,000.
515.16 	(2) The money shall be used for prevention 
515.17 	and intervention services and programs, 
515.18 	including, but not limited to, community 
515.19 	grants, professional education, public 
515.20 	awareness, and diagnosis. The organization 
515.21 	may retain $60,000 of the transferred money 
515.22 	for administrative costs. The organization 
515.23 	shall report to the commissioner annually 
515.24 	by January 15 on the services and programs 
515.25 	funded by the appropriation.
515.26 	(3) Notwithstanding any contrary provision 
515.27 	in this article, this rider shall not expire.
515.28 	Deaf or Hearing Loss Support. $100,000 
515.29 	for the first year and $100,000 for the second 
515.30 	year is for the purpose of providing family 
515.31 	support and assistance to families with 
515.32 	children who are deaf or have a hearing 
515.33 	loss. The family support provided must 
515.34 	include direct parent-to-parent assistance and 
516.1 	information on communication, educational, 
516.2 	and medical options. The commissioner 
516.3 	may contract with a nonprofit organization 
516.4 	that has the ability to provide these services 
516.5 	throughout the state.
516.6 	Heart Disease and Stroke Prevention.
516.7 	$200,000 is appropriated in the first year for 
516.8 	the heart disease and stroke prevention unit 
516.9 	of the Department of Health to fund data 
516.10 	collection and other activities to improve 
516.11 	cardiovascular health and reduce the burden 
516.12 	of heart disease and stroke in Minnesota. 
516.13 	This is a onetime appropriation.
516.14 	Family Planning Grants. Of the TANF 
516.15 	appropriation, $1,156,000 each year is for 
516.16 	family planning grants under Minnesota 
516.17 	Statutes, section 145.925.
516.18 	Suicide prevention programs. $355,000 
516.19 	in fiscal year 2008 and $145,000 in fiscal 
516.20 	year 2009 are to fund the suicide prevention 
516.21 	program.
516.22 	Hearing Aid and Instrument Loan Bank.
516.23 	Of the general fund appropriation, $70,000 
516.24 	each year is to the commissioner for the 
516.25 	purpose of providing a grant to cover 
516.26 	administrative costs for a statewide hearing 
516.27 	aid and instrument loan bank to families with 
516.28 	children newly diagnosed with hearing loss 
516.29 	from birth to the age of ten.
516.30 	Medical Home Learning Collaborative.
516.31 	Of the general fund appropriation, $500,000 
516.32 	in fiscal year 2008 and $500,000 in fiscal 
516.33 	year 2009 are to expand the medical 
516.34 	home learning collaborative initiative in 
516.35 	collaboration with the commissioner of 
517.1 	human services. Services provided under this 
517.2 	funding must support a medical home model 
517.3 	for children with special health care needs. 
517.4 	The collaborative shall report back to the 
517.5 	legislature on use of the funds by January 15, 
517.6 	2010. This appropriation shall not become 
517.7 	part of the base funding for the 2010-2011 
517.8 	biennium.
517.9 	Community Collaboratives. Of the general 
517.10 	fund appropriation, $300,000 in fiscal 
517.11 	year 2008 is to provide planning grants 
517.12 	to community collaboratives to cover the 
517.13 	uninsured. This is a onetime appropriation.
517.14 	Base Adjustment. General fund base is 
517.15 	$44,711,000 in each of fiscal years 2010 and 
517.16 	2011. State government special revenue base 
517.17 	is $1,275,000 in each fiscal years 2010 and 
517.18 	2011.

517.19	Subd. 3.Policy, Quality, and Compliance

517.20	Appropriations by Fund
	
517.21	General
	18,802,000
	12,700,000
	
517.22
517.23	State Government 
Special Revenue
	13,451,000
	13,597,000
	
517.24	Health Care Access
	17,078,000
	16,549,000
	
517.25 	Health Care Access Survey. Of the 
517.26 	health care access fund appropriation, 
517.27 	$600,000 in fiscal year 2008 is appropriated 
517.28 	to the commissioner to conduct a health 
517.29 	insurance survey of Minnesota households, 
517.30 	in partnership with the State Health Access 
517.31 	Data Assistance Center at the University 
517.32 	of Minnesota. The commissioner shall 
517.33 	contract with the State Health Access Data 
517.34 	Assistance Center to conduct a survey that 
517.35 	provides information on the characteristics 
517.36 	of the uninsured in Minnesota and the 
518.1 	reasons for changing patterns of insurance 
518.2 	coverage and access to health care services. 
518.3 	This appropriation shall become part of the 
518.4 	agency's base budget for even-numbered 
518.5 	fiscal years.
518.6 	MERC Federal Compliance. Of the general 
518.7 	fund appropriation, $7,000,000 each year is 
518.8 	to the commissioner to distribute to the Mayo 
518.9 	Clinic for the purpose of providing transition 
518.10 	funding while federal compliance changes 
518.11 	are made to the medical education and 
518.12 	research cost funding distribution formula in 
518.13 	Minnesota Statutes, section 62J.692.
518.14 	The base level funding for 2010 and 2011 is 
518.15 	$2,500,000 each year.
518.16 	Notwithstanding any contrary provision of 
518.17 	this article, this rider expires June 30, 2012.
518.18 	Health Information Technology. Of 
518.19 	the health care access fund appropriation, 
518.20 	$6,750,000 each fiscal year is to implement 
518.21 	Minnesota Statutes, section 144.3345. Up 
518.22 	to $350,000 each fiscal year is available for 
518.23 	grant administration and health information 
518.24 	technology technical assistance and 
518.25 	$6,400,000 each year is to establish a 
518.26 	revolving loan account under Minnesota 
518.27 	Statutes, section 62J.496. This appropriation 
518.28 	shall not be included in the agency's base 
518.29 	budget for the fiscal year beginning July 1, 
518.30 	2009.
518.31 	Health Insurance Exchange. Of the health 
518.32 	care access fund appropriation, $5,650,000 
518.33 	in fiscal year 2008 is appropriated to 
518.34 	the commissioner to establish the health 
518.35 	insurance exchange in Minnesota Statutes, 
519.1 	section 62A.76. Up to $50,000 in fiscal year 
519.2 	2008 is available for administrative costs 
519.3 	incurred by the Department of Health in 
519.4 	establishing and providing grant funding to 
519.5 	the legal entity responsible for implementing 
519.6 	the health insurance exchange. This is a 
519.7 	onetime appropriation.
519.8 	Uniform Electronic Transactions. Of the 
519.9 	general fund appropriation, $146,000 in fiscal 
519.10 	year 2008 is for development of uniform 
519.11 	electronic transactions and implementation 
519.12 	guide standards under Minnesota Statutes, 
519.13 	section 62J.536.
519.14 	Federally Qualified Health Centers. Of the 
519.15 	general fund appropriation, $2,000,000 in 
519.16 	each fiscal year is for subsidies to federally 
519.17 	qualified health centers under Minnesota 
519.18 	Statutes, section 145.9269.
519.19 	Base Adjustment. The general fund base 
519.20 	is $8,346,000 in each of fiscal years 2010 
519.21 	and 2011. The health care access fund 
519.22 	base is $3,503,000 in fiscal year 2010 and 
519.23 	$2,903,000 in fiscal year 2011.

519.24	Subd. 4.Health Protection

519.25	Appropriations by Fund
	
519.26	General
	16,949,000
	11,016,000
	
519.27
519.28	State Government 
Special Revenue
	27,475,000
	28,327,000
	
519.29 	Pandemic Influenza Preparedness. Of the 
519.30 	general fund appropriation, $500,000 in fiscal 
519.31 	year 2008 and $500,000 in fiscal year 2009 
519.32 	are for grants to local public health and tribal 
519.33 	governments for planning, exercises, and 
519.34 	preparedness for pandemic influenza, and 
519.35 	$115,000 in fiscal year 2008 and $115,000 in 
520.1 	fiscal year 2009 are for department activities 
520.2 	of epidemiology, laboratory services, 
520.3 	exercises, and planning. This appropriation 
520.4 	shall not become part of base level funding 
520.5 	for the biennium beginning July 1, 2009.
520.6 	Pandemic Influenza Preparedness.
520.7 	$4,805,000 is to prepare for and respond 
520.8 	to a pandemic influenza outbreak. Of this 
520.9 	appropriation, $2,402,000 is to purchase 
520.10 	antiviral medications and $2,403,000 is to 
520.11 	prepare and manage a stockpile of health 
520.12 	care supplies.
520.13 	AIDS Prevention Initiative Focusing on 
520.14 	Foreign-born Residents. $300,000 in 2008 
520.15 	is for an AIDS prevention initiative focusing 
520.16 	on foreign-born residents. This appropriation 
520.17 	is a onetime appropriation and shall not 
520.18 	become part of the base level funding for the 
520.19 	2010-2011 biennium.
520.20 	The commissioner of health shall award 
520.21 	grants in accordance with Minnesota Statutes, 
520.22 	section 145.924, paragraph (b), for a public 
520.23 	education and awareness campaign targeting 
520.24 	communities of foreign-born Minnesota 
520.25 	residents. The grants shall be designed to 
520.26 	promote knowledge and understanding about 
520.27 	HIV and to increase knowledge in order 
520.28 	to eliminate and reduce the risk for HIV 
520.29 	infection; to encourage screening and testing 
520.30 	for HIV; and to link individuals to public 
520.31 	health and health care resources. The grants 
520.32 	must be awarded to collaborative efforts that 
520.33 	bring together nonprofit community-based 
520.34 	groups with demonstrated experience in 
520.35 	addressing the public health, health care, 
521.1 	and social service needs of foreign-born 
521.2 	communities.
521.3 	Lead Abatement. $550,000 in each fiscal 
521.4 	year is for the lead abatement program in 
521.5 	Minnesota Statutes, section 144.9512.
521.6 	Water Treatment. $40,000 in fiscal year 
521.7 	2008 is to augment any appropriation from the 
521.8 	remediation fund to conduct an evaluation of 
521.9 	point of use water treatment units at removing 
521.10 	perfluorooctanoic acid, perfluorooctane 
521.11 	sulfonate, and perfluorobutanoic acid from 
521.12 	known concentrations of these compounds 
521.13 	in drinking water. The evaluation shall be 
521.14 	completed by December 31, 2007, and the 
521.15 	commissioner may contract for services to 
521.16 	complete the evaluation. This is a onetime 
521.17 	appropriation.
521.18 	HIV Information. $80,000 each year 
521.19 	is to fund a community-based nonprofit 
521.20 	organization with demonstrated capacity to 
521.21 	operate a statewide HIV information and 
521.22 	referral service using telephone, Internet, 
521.23 	and other appropriate technologies. This 
521.24 	appropriation shall become part of base level 
521.25 	funding for the biennium beginning July 1, 
521.26 	2009.
521.27 	Minnesota Birth Defects Information 
521.28 	System. $375,000 each year is to maintain 
521.29 	the birth defects information system that was 
521.30 	established by Minnesota Statutes, section 
521.31 	144.2215.
521.32 	Base Adjustment. The general fund base is 
521.33 	$10,751,000 in each of the fiscal years 2010 
521.34 	and 2011.

521.35	Subd. 5.Minority and Multicultural Health

522.1	Appropriations by Fund
	
522.2	General
	5,047,000
	5,012,000
	
522.3	Federal TANF
	2,683,000
	2,998,000
	
522.4 	TANF Appropriations. (a) $2,421,000 of 
522.5 	the TANF funds is appropriated in each year 
522.6 	of the biennium to the commissioner for 
522.7 	home visiting and nutritional services listed 
522.8 	under Minnesota Statutes, section 145.882, 
522.9 	subdivision 7, clauses (6) and (7). Funding 
522.10 	shall be distributed to tribal governments 
522.11 	based on Minnesota Statutes, section 
522.12 	145A.14, subdivision 2a, paragraph (b).
522.13 	TANF Appropriations. (a) $2,000,000 
522.14 	of the TANF funds is appropriated in each 
522.15 	year of the biennium to the commissioner 
522.16 	for decreasing racial and ethnic disparities 
522.17 	in infant mortality rates under Minnesota 
522.18 	Statutes, section 145.928, subdivision 7.
522.19 	(b) $683,000 the first year and $998,000 
522.20 	the second year of the TANF funds is 
522.21 	appropriated to the commissioner for the 
522.22 	family home visiting and grant program 
522.23 	under Minnesota Statutes, section 145A.17. 
522.24 	Funding shall be distributed to tribal 
522.25 	governments based on Minnesota Statutes, 
522.26 	section 145A.14, subdivision 2a, paragraph 
522.27 	(b).
522.28 	TANF Carryforward. Any unexpended 
522.29 	balance of the TANF appropriation in the 
522.30 	first year of the biennium does not cancel but 
522.31 	is available for the second year.

522.32	Subd. 6.Administrative Support Services

523.1	Appropriations by Fund
	
523.2	General
	8,497,000
	8,524,000
	
523.3
523.4	State Government 
Special Revenue
	2,000,000
	-0-
	
523.5 	Disease Surveillance. Of the state 
523.6 	government special revenue fund 
523.7 	appropriation, $2,000,000 the first year is for 
523.8 	redesigning and implementing coordinated 
523.9 	and modern disease surveillance systems 
523.10 	for the department. This is a onetime 
523.11 	appropriation.

523.12
523.13	Sec. 5. VETERANS NURSING HOMES 
BOARD
 	$
	43,934,000
	$
	45,956,000
	
523.14 	Veterans Homes Special Revenue Account.
523.15 	The general fund  appropriations made to 
523.16 	the board may be transferred to a veterans 
523.17 	homes special revenue account in the 
523.18 	special revenue fund in the same manner 
523.19 	as other receipts are deposited according to 
523.20 	Minnesota Statutes, section 198.34, and are 
523.21 	appropriated to the board for the operation of 
523.22 	board facilities and programs.
523.23 	Repair and Betterment. Of this 
523.24 	appropriation, $4,000,000 in fiscal year 2008 
523.25 	and $4,000,000 in fiscal year 2009 are to be 
523.26 	used for repair, maintenance, rehabilitation, 
523.27 	and betterment activities at facilities 
523.28 	statewide. This is a onetime appropriation.
523.29 	Base Adjustment. The general fund base is 
523.30 	$41,956,000 in each year of the fiscal 2010 
523.31 	and 2011 biennium.
523.32 	Pay for Performance. (a) For fiscal year 
523.33 	2008, $50,000 shall be made available to 
523.34 	the board on January 1, 2009, only after 
523.35 	notification by the board to the commissioner 
524.1 	of finance and to the chairs of the relevant 
524.2 	house of representatives and senate finance 
524.3 	and policy committees that during the period 
524.4 	October 1, 2007, to September 30, 2008, the 
524.5 	Department of Health has not issued any 
524.6 	penalty assessments under the provisions 
524.7 	of Minnesota Statutes, section 144.653 or 
524.8 	144A.10, or any correction orders under the 
524.9 	provisions of Minnesota Statutes, section 
524.10 	144.653 or 144A.10, that the Department 
524.11 	of Health deems equivalent to findings of 
524.12 	either immediate jeopardy or substandard 
524.13 	quality of care, as defined in Code of Federal 
524.14 	Regulations, title 42, section 488.301.
524.15 	(b) Regardless of whether this appropriation 
524.16 	is made available to the board, it shall be 
524.17 	part of base level funding for the biennium 
524.18 	beginning July 1, 2009.

524.19	Sec. 6. HEALTH-RELATED BOARDS

524.20
524.21	Subdivision 1.Total Appropriation; State 
Government Special Revenue Fund
 	$
	14,654,000
	$
	14,527,000
	
524.22 	The amounts that may be spent for each 
524.23 	purpose are specified in the following 
524.24 	subdivisions.

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

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

524.27
524.28	Subd. 4.Board of Dietetic and Nutrition 
Practice
 		103,000
		119,000
	
524.29 	Base Adjustment. Of this appropriation in 
524.30 	fiscal year 2009, $14,000 is onetime.

524.31
524.32	Subd. 5.Board of Marriage and Family 
Therapy
 		134,000
		154,000
	
524.33 	Base Adjustment. Of this appropriation in 
524.34 	fiscal year 2009, $17,000 is onetime.

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

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

525.3
525.4	Subd. 8.Board of Nursing Home 
Administrators
 		633,000
		647,000
	
525.5 	Administrative Services Unit. Of this 
525.6 	appropriation, $430,000 in fiscal year 
525.7 	2008 and $439,000 in fiscal year 2009 are 
525.8 	for the administrative services unit. The 
525.9 	administrative services unit may receive 
525.10 	and expend reimbursements for services 
525.11 	performed by other agencies.

525.12	Subd. 9.Board of Optometry
 		98,000
		114,000
	
525.13 	Base Adjustment. Of this appropriation in 
525.14 	fiscal year 2009, $13,000 is onetime.

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

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

525.19	Subd. 12.Board of Podiatry
 		54,000
		63,000
	
525.20 	Base Adjustment. Of this appropriation in 
525.21 	fiscal year 2009, $7,000 is onetime.

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

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

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

525.25
525.26	Subd. 16.Board of Behavioral Health and 
Therapy
 		394,000
		394,000

525.27
525.28	Sec. 7. EMERGENCY MEDICAL SERVICES 
BOARD
 	$
	4,421,000
	$
	4,467,000

525.29	Appropriations by Fund
	
525.30		2008
	2009
	
525.31	General
	3,734,000
	3,763,000
	
525.32
525.33	State Government 
Special Revenue
	687,000
	704,000
	
526.1 	Regional Grants. Of the general fund 
526.2 	appropriation, $400,000 in fiscal year 2008 
526.3 	and $400,000 in fiscal year 2009 are to 
526.4 	the board for regional emergency medical 
526.5 	services programs, to be distributed equally 
526.6 	to the eight emergency medical service 
526.7 	regions. This amount shall not become part 
526.8 	of base level funding. Notwithstanding 
526.9 	Minnesota Statutes, section 144E.50, 100 
526.10 	percent of the appropriation shall be passed 
526.11 	on to the emergency medical service regions.
526.12 	Longevity Award and Incentive Program.
526.13 	(a) Of the general fund appropriation, 
526.14 	$700,000 in fiscal year 2008 and $700,000 
526.15 	in fiscal year 2009 are to the board for the 
526.16 	ambulance service personnel longevity award 
526.17 	and incentive program, under Minnesota 
526.18 	Statutes, section 144E.40.
526.19 	(b) In fiscal year 2008, $800,000 shall be 
526.20 	transferred from the ambulance service 
526.21 	personnel longevity award and incentive 
526.22 	trust to the general fund.
526.23 	Health Professional Services Program.
526.24 	$687,000 in fiscal year 2008 and $704,000 in 
526.25 	fiscal year 2009 from the state government 
526.26 	special revenue fund are for the health 
526.27 	professional services program.
526.28 	Base Adjustment. The general fund base is 
526.29 	$3,363,000 in each year of the fiscal 2010 
526.30 	and 2011 biennium.

526.31	Sec. 8. COUNCIL ON DISABILITY
 	$
	812,000
	$
	524,000
	
526.32 	Assistive Technology. Of the general 
526.33 	fund appropriation to the Council on 
526.34 	Disability in fiscal year 2008, $100,000 
527.1 	is to provide financial support to the 
527.2 	Minnesota Regional Assistive Technology 
527.3 	Collaborative, and $200,000 is for a transfer 
527.4 	to the commissioner of administration 
527.5 	for the purposes of completing the state's 
527.6 	remaining share of the local match required 
527.7 	to access the federal Technology Related 
527.8 	Assistance Act for Persons with Disabilities, 
527.9 	Title III, Alternative Financing Project 2003 
527.10 	grant award, which provides microloans 
527.11 	to individuals for the purpose of acquiring 
527.12 	assistive technology devices and services.

527.13
527.14
527.15	Sec. 9. OMBUDSMAN FOR MENTAL 
HEALTH AND DEVELOPMENTAL 
DISABILITIES
 	$
	1,584,000
	$
	1,655,000

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

527.17 	Sec. 11. Minnesota Statutes 2006, section 16A.724, is amended by adding a 
527.18 	subdivision to read:
527.19 		Subd. 3.MinnesotaCare federal receipts. Receipts received as a result of federal 
527.20 	participation pertaining to administrative costs of the Minnesota health care reform waiver 
527.21 	shall be deposited as nondedicated revenue in the health care access fund. Receipts 
527.22 	received as a result of federal participation pertaining to grants shall be deposited in the 
527.23 	federal fund and shall offset health care access funds for payments to providers.

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

527.29 	Sec. 13. Minnesota Statutes 2006, section 69.021, subdivision 11, is amended to read:
527.30 		Subd. 11.Excess police state-aid holding account. (a) The excess police state-aid 
527.31 	holding account is established in the general fund. The excess police state-aid holding 
527.32 	account must be administered by the commissioner.
528.1 	(b) Excess police state aid determined according to subdivision 10, must be 
528.2 	deposited in the excess police state-aid holding account.
528.3 	(c) From the balance in the excess police state-aid holding account, $900,000 
528.4 	is appropriated to and must be transferredcanceled annually to the ambulance service 
528.5 	personnel longevity award and incentive suspense account established by section 144E.42, 
528.6 	subdivision 2 to the general fund.
528.7 	(d) If a police officer stress reduction program is created by law and money is 
528.8 	appropriated for that program, an amount equal to that appropriation must be transferred 
528.9 	to the administrator of that program from the balance in the excess police state-aid holding 
528.10 	account.
528.11 	(e) On October 1 of each year, one-half of the balance of the excess police 
528.12 	state-aid holding account remaining after the deductions under paragraphs (c) and (d) is 
528.13 	appropriated for additional amortization aid under section 423A.02, subdivision 1b.
528.14 	(f) Annually, the remaining balance in the excess police state-aid holding account, 
528.15 	after the deductions under paragraphs (c), (d), and (e), cancels to the general fund.

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

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

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

529.6 	Sec. 17. Minnesota Statutes 2006, section 256J.02, is amended by adding a subdivision 
529.7 	to read:
529.8 		Subd. 6.TANF funds appropriated to other entities. Any expenditures from 
529.9 	the TANF block grant shall be expended in accordance with the requirements and 
529.10 	limitations of part A of Title IV of the Social Security Act, as amended, and any other 
529.11 	applicable federal requirement or limitation. Prior to any expenditure of these funds, the 
529.12 	commissioner shall ensure that funds are expended in compliance with the requirements 
529.13 	and limitations of federal law and that any reporting requirements of federal law are 
529.14 	met. It shall be the responsibility of any entity to which these funds are appropriated to 
529.15 	implement a memorandum of understanding with the commissioner that provides the 
529.16 	necessary assurance of compliance prior to any expenditure of funds. The commissioner 
529.17 	shall receipt TANF funds appropriated to other state agencies and coordinate all related 
529.18 	interagency accounting transactions necessary to implement these appropriations. 
529.19 	Unexpended TANF funds appropriated to any state, local, or nonprofit entity cancel at the 
529.20 	end of the state fiscal year unless appropriating or statutory language permits otherwise.

529.21 	Sec. 18. Minnesota Statutes 2006, section 256J.77, is amended to read:
529.22 	256J.77 AGING OF CASH BENEFITS.
529.23 	Cash benefits under chapters 256D, 256J, and 256K, except food stamp benefits 
529.24 	under chapter 256D,  by warrants or electronic benefit transfer that have not been accessed 
529.25 	within 90 days of issuance shall be canceled. Cash benefits may be replaced after they are 
529.26 	canceled, for up to one year after the date of issuance, if failure to do so would place the 
529.27 	client or family at risk. For purposes of this section, "accessed" means cashing a warrant 
529.28 	or making at least one withdrawal from benefits deposited in an electronic benefit account.

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

530.3 	Sec. 20. COMPENSATION INCREASES.
 530.4 	The appropriations in this article, and any statutory appropriations from which 
530.5 	state employee compensation is paid from any fund, include an amount sufficient to fund 
530.6 	compensation increases of at least three percent of the 2007 compensation base for the 
530.7 	first year, compounded at the rate of three percent for the second year. This amount must 
530.8 	be used for that purpose and no other.

530.9 	Sec. 21. NONGRANT OPERATING CARRYFORWARD.
 530.10 	For the biennium ending June 30, 2007, any remaining nongrant operating balances 
530.11 	in the Department of Human Services, Minnesota Department of Health, veterans homes, 
530.12 	health-related boards, emergency medical services boards, Council on Disability, the 
530.13 	ombudsman for mental health and developmental disabilities, and the ombudsman 
530.14 	for families direct appropriated accounts may be transferred, with the approval of the 
530.15 	commissioner of finance, to a special revenue account. Funds in those accounts are 
530.16 	appropriated for costs associated with onetime technology, infrastructure, and systems 
530.17 	development projects. Remaining nongrant operating balances in fiscal year 2007 in 
530.18 	the Minnesota sex offender program and the Minnesota security hospital shall not be 
530.19 	transferred.
530.20 	(a) Transfers to a special revenue account shall be reported to the chairs and the 
530.21 	ranking members of the senate Health and Human Services Budget Division and the house 
530.22 	of representatives Health Care and Human Services Finance Division.
530.23 	(b) When these balances originate in nongeneral funds, the transfers shall be made 
530.24 	to separate accounts within the same funds and may only be used to support projects 
530.25 	relevant to the original funding source.
530.26 	(c) Uses of these special revenue account funds shall be reported annually by each 
530.27 	agency to the commissioner of finance, and to the chairs and ranking members of the 
530.28 	senate Health and Human Services Budget Division and the house of representatives 
530.29 	Health Care and Human Services Finance Division.

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

530.31 	Sec. 22. TRANSFERS.
 530.32 		Subdivision 1.Grants. The commissioner of human services, with the approval 
530.33 	of the commissioner of finance and after notifying the chairs of the senate and house 
531.1 	committees with jurisdiction, may transfer unencumbered appropriation balances for the 
531.2 	biennium ending June 30, 2009, within fiscal years among the MFIP; general assistance; 
531.3 	general assistance medical care; medical assistance; MFIP child care assistance under 
531.4 	Minnesota Statutes, section 119B.05; Minnesota supplemental aid and group residential 
531.5 	housing programs; and the entitlement portion of the chemical dependency consolidated 
531.6 	treatment fund and between fiscal years of the biennium.
531.7 		Subd. 2.Administration. Positions, salary money, and nonsalary administrative 
531.8 	money may be transferred within the Departments of Human Services and Health and 
531.9 	within the programs operated by the Veterans Nursing Homes Board as the commissioners 
531.10 	and the board consider necessary, with the advance approval of the commissioner of 
531.11 	finance. The commissioner or the board shall inform the chairs of the house and senate 
531.12 	committees with jurisdiction quarterly about transfers made under this provision.

531.13 	Sec. 23. INDIRECT COSTS NOT TO FUND PROGRAMS.
 531.14 	The commissioners of health and of human services shall not use indirect cost 
531.15 	allocations to pay for the operational costs of any program for which they are responsible.

531.16 	Sec. 24. SUNSET OF UNCODIFIED LANGUAGE.
 531.17 	All uncodified language contained in this article expires on June 30, 2009, unless a 
531.18 	different expiration date is explicit.

531.19 	Sec. 25. EFFECTIVE DATE.
 531.20 	The provisions in this article are effective July 1, 2007, unless a different effective 
531.21 	date is specified.