<a id="pl.1.4"></a><var>1.4</var>making changes to general assistance medical care, medical assistance, and <br/>
<a id="pl.1.5"></a><var>1.5</var>MinnesotaCare; modifying claims, liens, and treatment of assets; establishing a <br/>
<a id="pl.1.6"></a><var>1.6</var>statewide information exchange;amending Minnesota Statutes 2006, sections <br/>
<a id="pl.1.7"></a><var>1.7</var>256B.056, subdivisions 2, 4a, 11, by adding a subdivision; 256B.057, subdivision <br/>
<a id="pl.1.8"></a><var>1.8</var>1; 256B.0571, subdivisions 8, 9, 15, by adding a subdivision; 256B.058; <br/>
<a id="pl.1.9"></a><var>1.9</var>256B.059, subdivisions 1, 1a; 256B.0594; 256B.0595, subdivisions 1, 2, 3, 4, <br/>
<a id="pl.1.10"></a><var>1.10</var>by adding subdivisions; 256B.0625, subdivision 13g; 256B.075, subdivision 2; <br/>
<a id="pl.1.11"></a><var>1.11</var>256B.15, subdivision 4; 256B.69, subdivisions 6, 27; 524.3-803; Minnesota <br/>
<a id="pl.1.12"></a><var>1.12</var>Statutes 2007 Supplement, sections 256B.055, subdivision 14; 256B.0625, <br/>
<a id="pl.1.13"></a><var>1.13</var>subdivision 49; 256D.03, subdivision 3; proposing coding for new law in <br/>
<a id="pl.1.14"></a><var>1.14</var>Minnesota Statutes, chapter 256B.<br/>
<a id="pl.1.15"></a><var>1.15</var>May 7, 2008<br/>
<a id="pl.1.16"></a><var>1.16</var>The Honorable Margaret Anderson Kelliher<br/>
<a id="pl.1.17"></a><var>1.17</var>Speaker of the House of Representatives<br/>
<a id="pl.1.18"></a><var>1.18</var>The Honorable James P. Metzen<br/>
<a id="pl.1.19"></a><var>1.19</var>President of the Senate<br/>
<a id="pl.1.20"></a><var>1.20</var>We, the undersigned conferees for H. F. No. 3222 report that we have agreed upon <br/>
<a id="pl.1.21"></a><var>1.21</var>the items in dispute and recommend as follows:<br/>
<a id="pl.1.22"></a><var>1.22</var>That the Senate recede from its amendments and that H. F. No. 3222 be further <br/>
<a id="pl.1.23"></a><var>1.23</var>amended as follows:<br/>
<a id="pl.1.24"></a><var>1.24</var>Delete everything after the enacting clause and insert:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.1.27"></a><var>1.27</var>    Section 1. Minnesota Statutes 2006, section 125A.02, subdivision 1, is amended to <br/>
<a id="pl.1.28"></a><var>1.28</var>read:<br/>
<a id="pl.1.29"></a><var>1.29</var>    Subdivision 1. <b>Child with a disability.</b> Every child who has a hearing impairment, <br/>
<a id="pl.1.30"></a><var>1.30</var>blindness, visual disability, speech or language impairment, physical disability, other <br/>
<a id="pl.1.31"></a><var>1.31</var>health impairment, mental disability, emotional/behavioral disorder, specific learning <br/>
<a id="pl.2.1"></a><var>2.1</var>disability, autism, traumatic brain injury, multiple disabilities, or deaf/blind disability and <br/>
<a id="pl.2.2"></a><var>2.2</var>needs special instruction and services, as determined by the standards of the commissioner, <br/>
<a id="pl.2.3"></a><var>2.3</var>is a child with a disability. A licensed physician, an advanced practice nurse, or a licensed <br/>
<a id="pl.2.4"></a><var>2.4</var>psychologist is qualified to make a diagnosis and determination of attention deficit <br/>
<a id="pl.2.5"></a><var>2.5</var>disorder or attention deficit hyperactivity disorder for purposes of identifying a child <br/>
<a id="pl.2.6"></a><var>2.6</var>with a disability. In addition, every child under age three, and at local district discretion <br/>
<a id="pl.2.7"></a><var>2.7</var>from age three to age seven, who needs special instruction and services, as determined <br/>
<a id="pl.2.8"></a><var>2.8</var>by the standards of the commissioner, because the child has a substantial delay or has <br/>
<a id="pl.2.9"></a><var>2.9</var>an identifiable physical or mental condition known to hinder normal development is <br/>
<a id="pl.2.10"></a><var>2.10</var>a child with a disability.<br/>
<a id="pl.2.11"></a><var>2.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.2.12"></a><var>2.12</var>    Sec. 2. Minnesota Statutes 2006, section 144A.45, subdivision 1, is amended to read:<br/>
<a id="pl.2.13"></a><var>2.13</var>    Subdivision 1. <b>Rules.</b> The commissioner shall adopt rules for the regulation of <br/>
<a id="pl.2.14"></a><var>2.14</var>home care providers pursuant to sections 
         <statute_ref>144A.43</statute_ref> to 
         <statute_ref>144A.47</statute_ref>. The rules shall include <br/>
<a id="pl.2.15"></a><var>2.15</var>the following: <br/>
<a id="pl.2.16"></a><var>2.16</var>    (a) (1) provisions to assure, to the extent possible, the health, safety and well-being, <br/>
<a id="pl.2.17"></a><var>2.17</var>and appropriate treatment of persons who receive home care services;<br/>
<a id="pl.2.18"></a><var>2.18</var>    (b) (2) requirements that home care providers furnish the commissioner with <br/>
<a id="pl.2.19"></a><var>2.19</var>specified information necessary to implement sections 
         <statute_ref>144A.43</statute_ref> to 
         <statute_ref>144A.47</statute_ref>; <br/>
<a id="pl.2.20"></a><var>2.20</var>    (c) (3) standards of training of home care provider personnel, which may vary <br/>
<a id="pl.2.21"></a><var>2.21</var>according to the nature of the services provided or the health status of the consumer;<br/>
<a id="pl.2.22"></a><var>2.22</var>    (d) (4) standards for medication management which may vary according to the <br/>
<a id="pl.2.23"></a><var>2.23</var>nature of the services provided, the setting in which the services are provided, or the <br/>
<a id="pl.2.24"></a><var>2.24</var>status of the consumer. Medication management includes the central storage, handling, <br/>
<a id="pl.2.25"></a><var>2.25</var>distribution, and administration of medications;<br/>
<a id="pl.2.26"></a><var>2.26</var>    (e) (5) standards for supervision of home care services requiring supervision by a <br/>
<a id="pl.2.27"></a><var>2.27</var>registered nurse or other appropriate health care professional which must occur on site <br/>
<a id="pl.2.28"></a><var>2.28</var>at least every 62 days, or more frequently if indicated by a clinical assessment, and in <br/>
<a id="pl.2.29"></a><var>2.29</var>accordance with sections 
         <statute_ref>148.171</statute_ref> to 
         <statute_ref>148.285</statute_ref> and rules adopted thereunder, except that, <br/>
<a id="pl.2.30"></a><var>2.30</var>notwithstanding the provisions of Minnesota Rules, part 4668.0110, subpart 5, item B, <br/>
<a id="pl.2.31"></a><var>2.31</var>supervision of a person performing home care aide tasks for a class B licensee providing <br/>
<a id="pl.2.32"></a><var>2.32</var>paraprofessional services must occur only every 180 days, or more frequently if indicated <br/>
<a id="pl.2.33"></a><var>2.33</var>by a clinical assessment; <br/>
<a id="pl.2.34"></a><var>2.34</var>    (f) (6) standards for client evaluation or assessment which may vary according to the <br/>
<a id="pl.2.35"></a><var>2.35</var>nature of the services provided or the status of the consumer;<br/>
<a id="pl.3.1"></a><var>3.1</var>    (g) (7) requirements for the involvement of a consumer's physician, the <br/>
<a id="pl.3.2"></a><var>3.2</var>documentation of physicians' orders, if required, and the consumer's treatment plan, and <br/>
<a id="pl.3.3"></a><var>3.3</var>the maintenance of accurate, current clinical records;<br/>
<a id="pl.3.4"></a><var>3.4</var>    (h) (8) the establishment of different classes of licenses for different types of <br/>
<a id="pl.3.5"></a><var>3.5</var>providers and different standards and requirements for different kinds of home care <br/>
<a id="pl.3.6"></a><var>3.6</var>services; and<br/>
<a id="pl.3.7"></a><var>3.7</var>    (i) (9) operating procedures required to implement the home care bill of rights.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.3.8"></a><var>3.8</var>    Sec. 3. Minnesota Statutes 2006, section 144A.45, is amended by adding a subdivision <br/>
<a id="pl.3.9"></a><var>3.9</var>to read:<br/>
<a id="pl.3.10"></a><var>3.10</var>    Subd. 1a. <b>Home care aide tasks.</b> Notwithstanding the provisions of Minnesota <br/>
<a id="pl.3.11"></a><var>3.11</var>Rules, part 4668.0110, subpart 1, item E, home care aide tasks also include assisting <br/>
<a id="pl.3.12"></a><var>3.12</var>toileting, transfers, and ambulation if the client is ambulatory and if the client has no <br/>
<a id="pl.3.13"></a><var>3.13</var>serious acute illness or infectious disease.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.3.14"></a><var>3.14</var>    Sec. 4. <b>[145.1622] POLICY FOR NOTIFICATION OF DISPOSITION OPTIONS.</b><br/>
<a id="pl.3.15"></a><var>3.15</var>    Hospitals, clinics, and medical facilities must have in place by January 15, 2009, a <br/>
<a id="pl.3.16"></a><var>3.16</var>policy for informing a woman of available options for fetal disposition when the woman <br/>
<a id="pl.3.17"></a><var>3.17</var>experiences a miscarriage or is expected to experience a miscarriage.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.3.18"></a><var>3.18</var>    Sec. 5. Minnesota Statutes 2006, section 150A.06, is amended by adding a subdivision <br/>
<a id="pl.3.19"></a><var>3.19</var>to read:<br/>
<a id="pl.3.20"></a><var>3.20</var>    Subd. 9. <b>Graduates of nonaccredited dental programs.</b> A graduate of a <br/>
<a id="pl.3.21"></a><var>3.21</var>nonaccredited dental program who successfully completes the clinical licensure <br/>
<a id="pl.3.22"></a><var>3.22</var>examination, and meets all other applicant requirements of the board shall be licensed to <br/>
<a id="pl.3.23"></a><var>3.23</var>practice dentistry and granted a limited general dentist license by the board. The board <br/>
<a id="pl.3.24"></a><var>3.24</var>shall place limitations on the licensee's authority to practice by requiring the licensee to <br/>
<a id="pl.3.25"></a><var>3.25</var>practice under the general supervision of a Minnesota-licensed dentist approved by the <br/>
<a id="pl.3.26"></a><var>3.26</var>board. A person licensed under this subdivision must practice for three consecutive years <br/>
<a id="pl.3.27"></a><var>3.27</var>in Minnesota pursuant to a written agreement, approved by the board, between the licensee <br/>
<a id="pl.3.28"></a><var>3.28</var>and a Minnesota-licensed dentist who may limit the types of services authorized. At the <br/>
<a id="pl.3.29"></a><var>3.29</var>conclusion of the three-year period, the board shall grant an unlimited license without <br/>
<a id="pl.3.30"></a><var>3.30</var>further restrictions if all supervising dentists who had entered into written agreements with <br/>
<a id="pl.3.31"></a><var>3.31</var>the licensee during any part of the three-year period recommend unlimited licensure, and if <br/>
<a id="pl.3.32"></a><var>3.32</var>no corrective action or disciplinary action has been taken by the board against the licensee.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.4.1"></a><var>4.1</var>    Sec. 6. Minnesota Statutes 2006, section 214.40, is amended by adding a subdivision <br/>
<a id="pl.4.2"></a><var>4.2</var>to read:<br/>
<a id="pl.4.3"></a><var>4.3</var>    Subd. 8. <b>Fee adjustment.</b> The administrative services unit shall apportion between <br/>
<a id="pl.4.4"></a><var>4.4</var>the Board of Medical Practice, the Board of Dentistry, and the Board of Nursing an <br/>
<a id="pl.4.5"></a><var>4.5</var>amount to be raised through fees by the respective board. The amount apportioned to each <br/>
<a id="pl.4.6"></a><var>4.6</var>board shall be the total amount expended on medical professional liability insurance <br/>
<a id="pl.4.7"></a><var>4.7</var>coverage purchased for the providers regulated by the respective board. The respective <br/>
<a id="pl.4.8"></a><var>4.8</var>board may adjust the fees which the board is required to collect to compensate for the <br/>
<a id="pl.4.9"></a><var>4.9</var>amount apportioned to the board by the administrative services unit.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.4.10"></a><var>4.10</var>    Sec. 7. Minnesota Statutes 2006, section 256.01, is amended by adding a subdivision <br/>
<a id="pl.4.11"></a><var>4.11</var>to read:<br/>
<a id="pl.4.12"></a><var>4.12</var>    Subd. 27. <b>Statewide health information exchange.</b> (a) The commissioner has the <br/>
<a id="pl.4.13"></a><var>4.13</var>authority to join and participate as a member in a legal entity developing and operating a <br/>
<a id="pl.4.14"></a><var>4.14</var>statewide health information exchange that shall meet the following criteria:<br/>
<a id="pl.4.15"></a><var>4.15</var>    (1) the legal entity must meet all constitutional and statutory requirements to allow <br/>
<a id="pl.4.16"></a><var>4.16</var>the commissioner to participate; and <br/>
<a id="pl.4.17"></a><var>4.17</var>    (2) the commissioner or the commissioner's designated representative must have <br/>
<a id="pl.4.18"></a><var>4.18</var>the right to participate in the governance of the legal entity under the same terms and <br/>
<a id="pl.4.19"></a><var>4.19</var>conditions and subject to the same requirements as any other member in the legal entity <br/>
<a id="pl.4.20"></a><var>4.20</var>and in that role shall act to advance state interests and lessen the burdens of government.<br/>
<a id="pl.4.21"></a><var>4.21</var>    (b) Notwithstanding chapter 16C, the commissioner may pay the state's prorated <br/>
<a id="pl.4.22"></a><var>4.22</var>share of development-related expenses of the legal entity retroactively from October 29, <br/>
<a id="pl.4.23"></a><var>4.23</var>2007, regardless of the date the commissioner joins the legal entity as a member.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.4.24"></a><var>4.24</var>    Sec. 8. Minnesota Statutes 2007 Supplement, section 256B.055, subdivision 14, <br/>
<a id="pl.4.25"></a><var>4.25</var>is amended to read:<br/>
<a id="pl.4.26"></a><var>4.26</var>    Subd. 14. <b>Persons detained by law.</b> (a) Medical assistance may be paid for an <br/>
<a id="pl.4.27"></a><var>4.27</var>inmate of a correctional facility who is conditionally released as authorized under section <br/>
<statute_ref><a id="pl.4.28"></a><var>4.28</var>241.26
         </statute_ref>, 
         <statute_ref>244.065</statute_ref>, or 
         <statute_ref>631.425</statute_ref>, if the individual does not require the security of a public <br/>
<a id="pl.4.29"></a><var>4.29</var>detention facility and is housed in a halfway house or community correction center, or <br/>
<a id="pl.4.30"></a><var>4.30</var>under house arrest and monitored by electronic surveillance in a residence approved <br/>
<a id="pl.4.31"></a><var>4.31</var>by the commissioner of corrections, and if the individual meets the other eligibility <br/>
<a id="pl.4.32"></a><var>4.32</var>requirements of this chapter.<br/>
<a id="pl.4.33"></a><var>4.33</var>    (b) An individual who is enrolled in medical assistance, and who is charged with a <br/>
<a id="pl.4.34"></a><var>4.34</var>crime and incarcerated for less than 12 months shall be suspended from eligibility at the <br/>
<a id="pl.5.1"></a><var>5.1</var>time of incarceration until the individual is released. Upon release, medical assistance <br/>
<a id="pl.5.2"></a><var>5.2</var>eligibility is reinstated without reapplication using a reinstatement process and form, if the <br/>
<a id="pl.5.3"></a><var>5.3</var>individual is otherwise eligible.<br/>
<a id="pl.5.4"></a><var>5.4</var>    (c) An individual, regardless of age, who is considered an inmate of a public <br/>
<a id="pl.5.5"></a><var>5.5</var>institution as defined in Code of Federal Regulations, title 42, section 
         <statute_ref>435.1009</statute_ref> 435.1010, <br/>
<a id="pl.5.6"></a><var>5.6</var>is not eligible for medical assistance.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.5.7"></a><var>5.7</var>    Sec. 9. Minnesota Statutes 2006, section 256B.056, subdivision 2, is amended to read:<br/>
<a id="pl.5.8"></a><var>5.8</var>    Subd. 2. <b>Homestead exclusion </b><b>and homestead equity limit</b><b> for </b><b>institutionalized</b><b> </b><br/>
<a id="pl.5.9"></a><var>5.9</var><b>persons</b><b> residing in a long-term care facility</b><b>.</b> (a) The homestead shall be excluded <br/>
<a id="pl.5.10"></a><var>5.10</var>for the first six calendar months of a person's stay in a long-term care facility and shall <br/>
<a id="pl.5.11"></a><var>5.11</var>continue to be excluded for as long as the recipient can be reasonably expected to return to <br/>
<a id="pl.5.12"></a><var>5.12</var>the homestead. For purposes of this subdivision, "reasonably expected to return to the <br/>
<a id="pl.5.13"></a><var>5.13</var>homestead" means the recipient's attending physician has certified that the expectation <br/>
<a id="pl.5.14"></a><var>5.14</var>is reasonable, and the recipient can show that the cost of care upon returning home will <br/>
<a id="pl.5.15"></a><var>5.15</var>be met through medical assistance or other sources. The homestead shall continue to <br/>
<a id="pl.5.16"></a><var>5.16</var>be excluded for persons residing in a long-term care facility if it is used as a primary <br/>
<a id="pl.5.17"></a><var>5.17</var>residence by one of the following individuals:<br/>
<a id="pl.5.18"></a><var>5.18</var>    (1) the spouse;<br/>
<a id="pl.5.19"></a><var>5.19</var>    (2) a child under age 21;<br/>
<a id="pl.5.20"></a><var>5.20</var>    (3) a child of any age who is blind or permanently and totally disabled as defined in <br/>
<a id="pl.5.21"></a><var>5.21</var>the supplemental security income program;<br/>
<a id="pl.5.22"></a><var>5.22</var>    (4) a sibling who has equity interest in the home and who resided in the home for at <br/>
<a id="pl.5.23"></a><var>5.23</var>least one year immediately before the date of the person's admission to the facility; or<br/>
<a id="pl.5.24"></a><var>5.24</var>    (5) a child of any age, or, subject to federal approval, a grandchild of any age, who <br/>
<a id="pl.5.25"></a><var>5.25</var>resided in the home for at least two years immediately before the date of the person's <br/>
<a id="pl.5.26"></a><var>5.26</var>admission to the facility, and who provided care to the person that permitted the person to <br/>
<a id="pl.5.27"></a><var>5.27</var>reside at home rather than in an institution.<br/>
<a id="pl.5.28"></a><var>5.28</var>    (b) Effective for applications filed on or after July 1, 2006, and for renewals after <br/>
<a id="pl.5.29"></a><var>5.29</var>July 1, 2006, for persons who first applied for payment of long-term care services on <br/>
<a id="pl.5.30"></a><var>5.30</var>or after January 2, 2006, the equity interest in the homestead of an individual whose <br/>
<a id="pl.5.31"></a><var>5.31</var>eligibility for long-term care services is determined on or after January 1, 2006, shall not <br/>
<a id="pl.5.32"></a><var>5.32</var>exceed $500,000, unless it is the lawful residence of the individual's spouse or child <br/>
<a id="pl.5.33"></a><var>5.33</var>who is under age 21, blind, or disabled. The amount specified in this paragraph shall be <br/>
<a id="pl.5.34"></a><var>5.34</var>increased beginning in year 2011, from year to year based on the percentage increase in <br/>
<a id="pl.5.35"></a><var>5.35</var>the Consumer Price Index for all urban consumers (all items; United States city average), <br/>
<a id="pl.6.1"></a><var>6.1</var>rounded to the nearest $1,000. This provision may be waived in the case of demonstrated <br/>
<a id="pl.6.2"></a><var>6.2</var>hardship by a process to be determined by the secretary of health and human services <br/>
<a id="pl.6.3"></a><var>6.3</var>pursuant to section 6014 of the Deficit Reduction Act of 2005, Public Law 109-171.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.6.4"></a><var>6.4</var>    Sec. 10. Minnesota Statutes 2006, section 256B.056, is amended by adding a <br/>
<a id="pl.6.5"></a><var>6.5</var>subdivision to read:<br/>
<a id="pl.6.6"></a><var>6.6</var>    Subd. 2a. <b>Home equity limit for medical assistance payment of long-term </b><br/>
<a id="pl.6.7"></a><var>6.7</var><b>care services.</b> (a) Effective for requests of medical assistance payment of long-term <br/>
<a id="pl.6.8"></a><var>6.8</var>care services filed on or after July 1, 2006, and for renewals on or after July 1, 2006, <br/>
<a id="pl.6.9"></a><var>6.9</var>for persons who received payment of long-term care services under a request filed on <br/>
<a id="pl.6.10"></a><var>6.10</var>or after January 1, 2006, the equity interest in the home of a person whose eligibility <br/>
<a id="pl.6.11"></a><var>6.11</var>for long-term care services is determined on or after January 1, 2006, shall not exceed <br/>
<a id="pl.6.12"></a><var>6.12</var>$500,000, unless it is the lawful residence of the person's spouse or child who is under <br/>
<a id="pl.6.13"></a><var>6.13</var>age 21, or a child of any age who is blind or permanently and totally disabled as defined <br/>
<a id="pl.6.14"></a><var>6.14</var>in the Supplemental Security Income program. The amount specified in this paragraph <br/>
<a id="pl.6.15"></a><var>6.15</var>shall be increased beginning in year 2011, from year to year based on the percentage <br/>
<a id="pl.6.16"></a><var>6.16</var>increase in the Consumer Price Index for all urban consumers (all items; United States city <br/>
<a id="pl.6.17"></a><var>6.17</var>average), rounded to the nearest $1,000.<br/>
<a id="pl.6.18"></a><var>6.18</var>    (b) For purposes of this subdivision, a "home" means any real or personal property <br/>
<a id="pl.6.19"></a><var>6.19</var>interest, including an interest in an agricultural homestead as defined under section <br/>
<a id="pl.6.20"></a><var>6.20</var>273.124, subdivision 1, that, at the time of the request for medical assistance payment of <br/>
<a id="pl.6.21"></a><var>6.21</var>long-term care services, is the primary dwelling of the person or was the primary dwelling <br/>
<a id="pl.6.22"></a><var>6.22</var>of the person before receipt of long-term care services began outside of the home.<br/>
<a id="pl.6.23"></a><var>6.23</var>    (c) A person denied or terminated from medical assistance payment of long-term <br/>
<a id="pl.6.24"></a><var>6.24</var>care services because the person's home equity exceeds the home equity limit may seek <br/>
<a id="pl.6.25"></a><var>6.25</var>a waiver based upon a hardship by filing a written request with the county agency. <br/>
<a id="pl.6.26"></a><var>6.26</var>Hardship is an imminent threat to the person's health and well-being that is demonstrated <br/>
<a id="pl.6.27"></a><var>6.27</var>by documentation of no alternatives for payment of long-term care services. The county <br/>
<a id="pl.6.28"></a><var>6.28</var>agency shall make a decision regarding the written request to waive the home equity limit <br/>
<a id="pl.6.29"></a><var>6.29</var>within 30 days if all necessary information has been provided. The county agency shall <br/>
<a id="pl.6.30"></a><var>6.30</var>send the person and the person's representative a written notice of decision on the request <br/>
<a id="pl.6.31"></a><var>6.31</var>for a demonstrated hardship waiver that also advises the person of appeal rights under the <br/>
<a id="pl.6.32"></a><var>6.32</var>fair hearing process of section 256.045.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.6.33"></a><var>6.33</var>    Sec. 11. Minnesota Statutes 2006, section 256B.056, subdivision 4a, is amended to <br/>
<a id="pl.6.34"></a><var>6.34</var>read:<br/>
<a id="pl.7.1"></a><var>7.1</var>    Subd. 4a. <b>Asset verification.</b> For purposes of verification, the value of an individual <br/>
<a id="pl.7.2"></a><var>7.2</var>is not required to make a good faith effort to sell a life estate that is not excluded under <br/>
<a id="pl.7.3"></a><var>7.3</var>subdivision 2 and the life estate shall be considered deemed not salable unless the owner <br/>
<a id="pl.7.4"></a><var>7.4</var>of the remainder interest intends to purchase the life estate, or the owner of the life estate <br/>
<a id="pl.7.5"></a><var>7.5</var>and the owner of the remainder sell the entire property. This subdivision applies only for <br/>
<a id="pl.7.6"></a><var>7.6</var>the purpose of determining eligibility for medical assistance, and does not apply to the <br/>
<a id="pl.7.7"></a><var>7.7</var>valuation of assets owned by either the institutional spouse or the community spouse <br/>
<a id="pl.7.8"></a><var>7.8</var>under section 256B.059, subdivision 2.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.7.9"></a><var>7.9</var>    Sec. 12. Minnesota Statutes 2006, section 256B.056, subdivision 11, is amended to <br/>
<a id="pl.7.10"></a><var>7.10</var>read:<br/>
<a id="pl.7.11"></a><var>7.11</var>    Subd. 11. <b>Treatment of annuities.</b> (a) Any individual applying for or seeking <br/>
<a id="pl.7.12"></a><var>7.12</var>recertification of eligibility for person requesting medical assistance payment of long-term <br/>
<a id="pl.7.13"></a><var>7.13</var>care services shall provide a complete description of any interest either the individual <br/>
<a id="pl.7.14"></a><var>7.14</var>person or the individual's person's spouse has in annuities on a form designated by the <br/>
<a id="pl.7.15"></a><var>7.15</var>department. The form shall include a statement that the state becomes a preferred <br/>
<a id="pl.7.16"></a><var>7.16</var>remainder beneficiary of annuities or similar financial instruments by virtue of the receipt <br/>
<a id="pl.7.17"></a><var>7.17</var>of medical assistance payment of long-term care services. The individual person and the <br/>
<a id="pl.7.18"></a><var>7.18</var>individual's person's spouse shall furnish the agency responsible for determining eligibility <br/>
<a id="pl.7.19"></a><var>7.19</var>with complete current copies of their annuities and related documents for review as part <br/>
<a id="pl.7.20"></a><var>7.20</var>of the application process on disclosure forms provided by the department as part of <br/>
<a id="pl.7.21"></a><var>7.21</var>their application and complete the form designating the state as the preferred remainder <br/>
<a id="pl.7.22"></a><var>7.22</var>beneficiary for each annuity in which the person or the person's spouse has an interest.<br/>
<a id="pl.7.23"></a><var>7.23</var>    (b) The disclosure form shall include a statement that the department becomes the <br/>
<a id="pl.7.24"></a><var>7.24</var>remainder beneficiary under the annuity or similar financial instrument by virtue of the <br/>
<a id="pl.7.25"></a><var>7.25</var>receipt of medical assistance. The disclosure form department shall include a provide <br/>
<a id="pl.7.26"></a><var>7.26</var>notice to the issuer of the department's right under this section as a preferred remainder <br/>
<a id="pl.7.27"></a><var>7.27</var>beneficiary under the annuity or similar financial instrument for medical assistance <br/>
<a id="pl.7.28"></a><var>7.28</var>furnished to the individual person or the individual's person's spouse, and require the <br/>
<a id="pl.7.29"></a><var>7.29</var>issuer to provide confirmation that a remainder beneficiary designation has been made <br/>
<a id="pl.7.30"></a><var>7.30</var>and to notify the county agency when there is a change in the amount of the income or <br/>
<a id="pl.7.31"></a><var>7.31</var>principal being withdrawn from the annuity or other similar financial instrument at the <br/>
<a id="pl.7.32"></a><var>7.32</var>time of the most recent disclosure required under this section. The individual and the <br/>
<a id="pl.7.33"></a><var>7.33</var>individual's spouse shall execute separate disclosure forms for each annuity or similar <br/>
<a id="pl.7.34"></a><var>7.34</var>financial instrument that they are required to disclose under this section and in which they <br/>
<a id="pl.7.35"></a><var>7.35</var>have an interest provide notice of the issuer's responsibilities as provided in paragraph (c).<br/>
<a id="pl.8.1"></a><var>8.1</var>    (c) An issuer of an annuity or similar financial instrument who receives notice <br/>
<a id="pl.8.2"></a><var>8.2</var>on a disclosure form of the state's right to be named a preferred remainder beneficiary <br/>
<a id="pl.8.3"></a><var>8.3</var>as described in paragraph (b) shall provide confirmation to the requesting agency that <br/>
<a id="pl.8.4"></a><var>8.4</var>a remainder beneficiary designating the state has been made and a preferred remainder <br/>
<a id="pl.8.5"></a><var>8.5</var>beneficiary. The issuer shall also notify the county agency when there is a change in the <br/>
<a id="pl.8.6"></a><var>8.6</var>amount of income or principal being withdrawn from the annuity or other similar financial <br/>
<a id="pl.8.7"></a><var>8.7</var>instrument or a change in the state's preferred remainder beneficiary designation under <br/>
<a id="pl.8.8"></a><var>8.8</var>the annuity or other similar financial instrument occurs. The county agency shall provide <br/>
<a id="pl.8.9"></a><var>8.9</var>the issuer with the name, address, and telephone number of a unit within the department <br/>
<a id="pl.8.10"></a><var>8.10</var>that the issuer can contact to comply with this paragraph.<br/>
<a id="pl.8.11"></a><var>8.11</var>    (d) "Preferred remainder beneficiary" for purposes of this subdivision and sections <br/>
<a id="pl.8.12"></a><var>8.12</var>256B.0594 and 256B.0595 means the state is a remainder beneficiary in the first position in <br/>
<a id="pl.8.13"></a><var>8.13</var>an amount equal to the amount of medical assistance paid on behalf of the institutionalized <br/>
<a id="pl.8.14"></a><var>8.14</var>person, or is a remainder beneficiary in the second position if the institutionalized person <br/>
<a id="pl.8.15"></a><var>8.15</var>designates and is survived by a remainder beneficiary who is (1) a spouse who does not <br/>
<a id="pl.8.16"></a><var>8.16</var>reside in a medical institution, (2) a minor child, or (3) a child of any age who is blind or <br/>
<a id="pl.8.17"></a><var>8.17</var>permanently and totally disabled as defined in the Supplemental Security Income program. <br/>
<a id="pl.8.18"></a><var>8.18</var>Notwithstanding this paragraph, the state is the remainder beneficiary in the first position <br/>
<a id="pl.8.19"></a><var>8.19</var>if the spouse or child disposes of the remainder for less than fair market value.<br/>
<a id="pl.8.20"></a><var>8.20</var>    (e) For purposes of this subdivision, "institutionalized person" and "long-term care <br/>
<a id="pl.8.21"></a><var>8.21</var>services" have the meanings given in section 256B.0595, subdivision 1, paragraph (h).<br/>
<a id="pl.8.22"></a><var>8.22</var>    (f) For purposes of this subdivision, "medical institution" means a skilled <br/>
<a id="pl.8.23"></a><var>8.23</var>nursing facility, intermediate care facility, intermediate care facility for persons with <br/>
<a id="pl.8.24"></a><var>8.24</var>developmental disabilities, nursing facility, or inpatient hospital.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.8.25"></a><var>8.25</var>    Sec. 13. Minnesota Statutes 2006, section 256B.057, subdivision 1, is amended to read:<br/>
<a id="pl.8.26"></a><var>8.26</var>    Subdivision 1. <b>Infants and pregnant women.</b> (a)(1) An infant less than one year of <br/>
<a id="pl.8.27"></a><var>8.27</var>age or a pregnant woman who has written verification of a positive pregnancy test from a <br/>
<a id="pl.8.28"></a><var>8.28</var>physician or licensed registered nurse is eligible for medical assistance if countable family <br/>
<a id="pl.8.29"></a><var>8.29</var>income is equal to or less than 275 percent of the federal poverty guideline for the same <br/>
<a id="pl.8.30"></a><var>8.30</var>family size. A pregnant woman who has written verification of a positive pregnancy test <br/>
<a id="pl.8.31"></a><var>8.31</var>from a physician or licensed registered nurse is eligible for medical assistance if countable <br/>
<a id="pl.8.32"></a><var>8.32</var>family income is equal to or less than 200 percent of the federal poverty guideline for the <br/>
<a id="pl.8.33"></a><var>8.33</var>same family size. For purposes of this subdivision, "countable family income" means the <br/>
<a id="pl.8.34"></a><var>8.34</var>amount of income considered available using the methodology of the AFDC program <br/>
<a id="pl.8.35"></a><var>8.35</var>under the state's AFDC plan as of July 16, 1996, as required by the Personal Responsibility <br/>
<a id="pl.9.1"></a><var>9.1</var>and Work Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 104-193, <br/>
<a id="pl.9.2"></a><var>9.2</var>except for the earned income disregard and employment deductions.<br/>
<a id="pl.9.3"></a><var>9.3</var>    (2) For applications processed within one calendar month prior to the effective date, <br/>
<a id="pl.9.4"></a><var>9.4</var>eligibility shall be determined by applying the income standards and methodologies in <br/>
<a id="pl.9.5"></a><var>9.5</var>effect prior to the effective date for any months in the six-month budget period before <br/>
<a id="pl.9.6"></a><var>9.6</var>that date and the income standards and methodologies in effect on the effective date for <br/>
<a id="pl.9.7"></a><var>9.7</var>any months in the six-month budget period on or after that date. The income standards <br/>
<a id="pl.9.8"></a><var>9.8</var>for each month shall be added together and compared to the applicant's total countable <br/>
<a id="pl.9.9"></a><var>9.9</var>income for the six-month budget period to determine eligibility.<br/>
<a id="pl.9.10"></a><var>9.10</var>    (b)(1) [Expired, 1Sp2003 c 14 art 12 s 19]<br/>
<a id="pl.9.11"></a><var>9.11</var>    (2) For applications processed within one calendar month prior to July 1, 2003, <br/>
<a id="pl.9.12"></a><var>9.12</var>eligibility shall be determined by applying the income standards and methodologies in <br/>
<a id="pl.9.13"></a><var>9.13</var>effect prior to July 1, 2003, for any months in the six-month budget period before July 1, <br/>
<a id="pl.9.14"></a><var>9.14</var>2003, and the income standards and methodologies in effect on the expiration date for any <br/>
<a id="pl.9.15"></a><var>9.15</var>months in the six-month budget period on or after July 1, 2003. The income standards <br/>
<a id="pl.9.16"></a><var>9.16</var>for each month shall be added together and compared to the applicant's total countable <br/>
<a id="pl.9.17"></a><var>9.17</var>income for the six-month budget period to determine eligibility.<br/>
<a id="pl.9.18"></a><var>9.18</var>    (3) An amount equal to the amount of earned income exceeding 275 percent of <br/>
<a id="pl.9.19"></a><var>9.19</var>the federal poverty guideline, up to a maximum of the amount by which the combined <br/>
<a id="pl.9.20"></a><var>9.20</var>total of 185 percent of the federal poverty guideline plus the earned income disregards <br/>
<a id="pl.9.21"></a><var>9.21</var>and deductions allowed under the state's AFDC plan as of July 16, 1996, as required <br/>
<a id="pl.9.22"></a><var>9.22</var>by the Personal Responsibility and Work Opportunity Act of 1996 (PRWORA), Public <br/>
<a id="pl.9.23"></a><var>9.23</var>Law 104-193, exceeds 275 percent of the federal poverty guideline will be deducted for <br/>
<a id="pl.9.24"></a><var>9.24</var>pregnant women and infants less than one year of age.<br/>
<a id="pl.9.25"></a><var>9.25</var>    (c) Dependent care and child support paid under court order shall be deducted from <br/>
<a id="pl.9.26"></a><var>9.26</var>the countable income of pregnant women.<br/>
<a id="pl.9.27"></a><var>9.27</var>    (d) An infant born on or after January 1, 1991, to a woman who was eligible for and <br/>
<a id="pl.9.28"></a><var>9.28</var>receiving medical assistance on the date of the child's birth shall continue to be eligible for <br/>
<a id="pl.9.29"></a><var>9.29</var>medical assistance without redetermination until the child's first birthday, as long as the <br/>
<a id="pl.9.30"></a><var>9.30</var>child remains in the woman's household.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.9.31"></a><var>9.31</var>    Sec. 14. Minnesota Statutes 2006, section 256B.0571, subdivision 6, is amended to <br/>
<a id="pl.9.32"></a><var>9.32</var>read:<br/>
<a id="pl.9.33"></a><var>9.33</var>    Subd. 6. <b>Partnership policy.</b> "Partnership policy" means a long-term care insurance <br/>
<a id="pl.9.34"></a><var>9.34</var>policy that meets the requirements under subdivision 10 and was issued on or after the <br/>
<a id="pl.9.35"></a><var>9.35</var>effective date of the state plan amendment implementing the partnership program in <br/>
<a id="pl.10.1"></a><var>10.1</var>Minnesota. Policies that are exchanged or that have riders or endorsements added on or <br/>
<a id="pl.10.2"></a><var>10.2</var>after the effective date of the state plan amendment as authorized by the commissioner of <br/>
<a id="pl.10.3"></a><var>10.3</var>commerce qualify as a partnership policy.<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.10.4"></a><var>10.4</var>    Sec. 15. Minnesota Statutes 2006, section 256B.0571, subdivision 8, is amended to <br/>
<a id="pl.10.5"></a><var>10.5</var>read:<br/>
<a id="pl.10.6"></a><var>10.6</var>    Subd. 8. <b>Program established.</b> (a) The commissioner, in cooperation with the <br/>
<a id="pl.10.7"></a><var>10.7</var>commissioner of commerce, shall establish the Minnesota partnership for long-term care <br/>
<a id="pl.10.8"></a><var>10.8</var>program to provide for the financing of long-term care through a combination of private <br/>
<a id="pl.10.9"></a><var>10.9</var>insurance and medical assistance.<br/>
<a id="pl.10.10"></a><var>10.10</var>    (b) An individual who meets the requirements in this paragraph is eligible to <br/>
<a id="pl.10.11"></a><var>10.11</var>participate in the partnership program. The individual must:<br/>
<a id="pl.10.12"></a><var>10.12</var>    (1) meet one of the following criteria:<br/>
<a id="pl.10.13"></a><var>10.13</var>    (i) be a beneficiary of, and a Minnesota resident at the time coverage first became <br/>
<a id="pl.10.14"></a><var>10.14</var>effective under the a partnership policy;<br/>
<a id="pl.10.15"></a><var>10.15</var>    (2) be a beneficiary of a partnership policy that (i) either  is issued on or after the <br/>
<a id="pl.10.16"></a><var>10.16</var>effective date of the state plan amendment implementing the partnership program in <br/>
<a id="pl.10.17"></a><var>10.17</var>Minnesota, or (ii) qualifies as a partnership policy under the provisions of subdivision 8a <br/>
<a id="pl.10.18"></a><var>10.18</var>as authorized by the commissioner of commerce under subdivision 6; and or<br/>
<a id="pl.10.19"></a><var>10.19</var>    (ii) be a beneficiary of a policy recognized under subdivision 17; and<br/>
<a id="pl.10.20"></a><var>10.20</var>    (3) (2) have exhausted all of the benefits under the partnership policy as described <br/>
<a id="pl.10.21"></a><var>10.21</var>in this section. Benefits received under a long-term care insurance policy before July 1, <br/>
<a id="pl.10.22"></a><var>10.22</var>2006, do not count toward the exhaustion of benefits required in this subdivision.<br/>
<br/>
<a id="bill.1.16.0"></a><a id="pl.10.23"></a><var>10.23</var>    Sec. 16. Minnesota Statutes 2006, section 256B.0571, subdivision 9, is amended to <br/>
<a id="pl.10.24"></a><var>10.24</var>read:<br/>
<a id="pl.10.25"></a><var>10.25</var>    Subd. 9. <b>Medical assistance eligibility.</b> (a) Upon application request for medical <br/>
<a id="pl.10.26"></a><var>10.26</var>assistance program payment of long-term care services by an individual who meets the <br/>
<a id="pl.10.27"></a><var>10.27</var>requirements described in subdivision 8, the commissioner shall determine the individual's <br/>
<a id="pl.10.28"></a><var>10.28</var>eligibility for medical assistance according to paragraphs (b) to (i).<br/>
<a id="pl.10.29"></a><var>10.29</var>    (b) After determining assets subject to the asset limit under section 256B.056, <br/>
<a id="pl.10.30"></a><var>10.30</var>subdivision 3 or 3c, or 256B.057, subdivision 9 or 10, the commissioner shall allow <br/>
<a id="pl.10.31"></a><var>10.31</var>the individual to designate assets to be protected from recovery under subdivisions 13 <br/>
<a id="pl.10.32"></a><var>10.32</var>and 15 up to the dollar amount of the benefits utilized under the partnership policy. <br/>
<a id="pl.10.33"></a><var>10.33</var>Designated assets shall be disregarded for purposes of determining eligibility for payment <br/>
<a id="pl.10.34"></a><var>10.34</var>of long-term care services.<br/>
<a id="pl.11.1"></a><var>11.1</var>    (c) The individual shall identify the designated assets and the full fair market value <br/>
<a id="pl.11.2"></a><var>11.2</var>of those assets and designate them as assets to be protected at the time of initial application <br/>
<a id="pl.11.3"></a><var>11.3</var>for medical assistance. The full fair market value of real property or interests in real <br/>
<a id="pl.11.4"></a><var>11.4</var>property shall be based on the most recent full assessed value for property tax purposes <br/>
<a id="pl.11.5"></a><var>11.5</var>for the real property, unless the individual provides a complete professional appraisal by <br/>
<a id="pl.11.6"></a><var>11.6</var>a licensed appraiser to establish the full fair market value. The extent of a life estate in <br/>
<a id="pl.11.7"></a><var>11.7</var>real property shall be determined using the life estate table in the health care program's <br/>
<a id="pl.11.8"></a><var>11.8</var>manual. Ownership of any asset in joint tenancy shall be treated as ownership as tenants <br/>
<a id="pl.11.9"></a><var>11.9</var>in common for purposes of its designation as a disregarded asset. The unprotected value <br/>
<a id="pl.11.10"></a><var>11.10</var>of any protected asset is subject to estate recovery according to subdivisions 13 and 15.<br/>
<a id="pl.11.11"></a><var>11.11</var>    (d) The right to designate assets to be protected is personal to the individual and <br/>
<a id="pl.11.12"></a><var>11.12</var>ends when the individual dies, except as otherwise provided in subdivisions 13 and <br/>
<a id="pl.11.13"></a><var>11.13</var>15. It does not include the increase in the value of the protected asset and the income, <br/>
<a id="pl.11.14"></a><var>11.14</var>dividends, or profits from the asset. It may be exercised by the individual or by anyone <br/>
<a id="pl.11.15"></a><var>11.15</var>with the legal authority to do so on the individual's behalf. It shall not be sold, assigned, <br/>
<a id="pl.11.16"></a><var>11.16</var>transferred, or given away.<br/>
<a id="pl.11.17"></a><var>11.17</var>    (e) If the dollar amount of the benefits utilized under a partnership policy is greater <br/>
<a id="pl.11.18"></a><var>11.18</var>than the full fair market value of all assets protected at the time of the application for <br/>
<a id="pl.11.19"></a><var>11.19</var>medical assistance long-term care services, the individual may designate additional assets <br/>
<a id="pl.11.20"></a><var>11.20</var>that become available during the individual's lifetime for protection under this section. <br/>
<a id="pl.11.21"></a><var>11.21</var>The individual must make the designation in writing to the county agency no later than <br/>
<a id="pl.11.22"></a><var>11.22</var>the last date on which the individual must report a change in circumstances to the county <br/>
<a id="pl.11.23"></a><var>11.23</var>agency, as provided for under the medical assistance program ten days from the date the <br/>
<a id="pl.11.24"></a><var>11.24</var>designation is requested by the county agency. Any excess used for this purpose shall not <br/>
<a id="pl.11.25"></a><var>11.25</var>be available to the individual's estate to protect assets in the estate from recovery under <br/>
<a id="pl.11.26"></a><var>11.26</var>section 256B.15 or 524.3-1202, or otherwise.<br/>
<a id="pl.11.27"></a><var>11.27</var>    (f) This section applies only to estate recovery under United States Code, title 42, <br/>
<a id="pl.11.28"></a><var>11.28</var>section 1396p, subsections (a) and (b), and does not apply to recovery authorized by other <br/>
<a id="pl.11.29"></a><var>11.29</var>provisions of federal law, including, but not limited to, recovery from trusts under United <br/>
<a id="pl.11.30"></a><var>11.30</var>States Code, title 42, section 1396p, subsection (d)(4)(A) and (C), or to recovery from <br/>
<a id="pl.11.31"></a><var>11.31</var>annuities, or similar legal instruments, subject to section 6012, subsections (a) and (b), of <br/>
<a id="pl.11.32"></a><var>11.32</var>the Deficit Reduction Act of 2005, Public Law 109-171.<br/>
<a id="pl.11.33"></a><var>11.33</var>    (g) An individual's protected assets owned by the individual's spouse who applies <br/>
<a id="pl.11.34"></a><var>11.34</var>for payment of medical assistance long-term care services shall not be protected assets or <br/>
<a id="pl.11.35"></a><var>11.35</var>disregarded for purposes of eligibility of the individual's spouse solely because they were <br/>
<a id="pl.11.36"></a><var>11.36</var>protected assets of the individual.<br/>
<a id="pl.12.1"></a><var>12.1</var>    (h) Assets designated under this subdivision shall not be subject to penalty under <br/>
<a id="pl.12.2"></a><var>12.2</var>section 256B.0595.<br/>
<a id="pl.12.3"></a><var>12.3</var>    (i) The commissioner shall otherwise determine the individual's eligibility <br/>
<a id="pl.12.4"></a><var>12.4</var>for payment of long-term care services according to medical assistance eligibility <br/>
<a id="pl.12.5"></a><var>12.5</var>requirements.<br/>
<br/>
<a id="bill.1.17.0"></a><a id="pl.12.6"></a><var>12.6</var>    Sec. 17. Minnesota Statutes 2006, section 256B.0571, subdivision 15, is amended to <br/>
<a id="pl.12.7"></a><var>12.7</var>read:<br/>
<a id="pl.12.8"></a><var>12.8</var>    Subd. 15. <b>Limitation on liens.</b> (a) An individual's interest in real property shall not <br/>
<a id="pl.12.9"></a><var>12.9</var>be subject to a medical assistance lien under sections 514.980 to 514.985 or a notice of <br/>
<a id="pl.12.10"></a><var>12.10</var>potential claim lien arising under section 256B.15 while and to the extent it is protected <br/>
<a id="pl.12.11"></a><var>12.11</var>under subdivision 9. An individual's interest in real property that exceeds the value <br/>
<a id="pl.12.12"></a><var>12.12</var>protected under subdivision 9 is subject to a lien for recovery.<br/>
<a id="pl.12.13"></a><var>12.13</var>    (b) Medical assistance liens under sections 514.980 to 514.985 or liens arising <br/>
<a id="pl.12.14"></a><var>12.14</var>under notices of potential claims section 256B.15 against an individual's interests in real <br/>
<a id="pl.12.15"></a><var>12.15</var>property in the individual's estate that are designated as protected under subdivision 13, <br/>
<a id="pl.12.16"></a><var>12.16</var>paragraph (b), shall be released to the extent of the dollar value of the protection applied <br/>
<a id="pl.12.17"></a><var>12.17</var>to the interest.<br/>
<a id="pl.12.18"></a><var>12.18</var>    (c) If an interest in real property is protected from a lien for recovery of medical <br/>
<a id="pl.12.19"></a><var>12.19</var>assistance paid on behalf of the individual under paragraph (a) or (b), no lien for recovery <br/>
<a id="pl.12.20"></a><var>12.20</var>of medical assistance paid on behalf of that individual shall be filed against the protected <br/>
<a id="pl.12.21"></a><var>12.21</var>interest in real property after it is distributed to the individual's heirs or devisees.<br/>
<br/>
<a id="bill.1.18.0"></a><a id="pl.12.22"></a><var>12.22</var>    Sec. 18. Minnesota Statutes 2006, section 256B.0571, is amended by adding a <br/>
<a id="pl.12.23"></a><var>12.23</var>subdivision to read:<br/>
<a id="pl.12.24"></a><var>12.24</var>    Subd. 17. <b>Reciprocal agreements.</b> The commissioner may enter into an agreement <br/>
<a id="pl.12.25"></a><var>12.25</var>with any other state with a partnership program under United States Code, title 42, <br/>
<a id="pl.12.26"></a><var>12.26</var>section 1396p(b)(1)(C), for reciprocal recognition of qualified long-term care insurance <br/>
<a id="pl.12.27"></a><var>12.27</var>policies purchased under each state's partnership program. The commissioner shall notify <br/>
<a id="pl.12.28"></a><var>12.28</var>the secretary of the United States Department of Health and Human Services if the <br/>
<a id="pl.12.29"></a><var>12.29</var>commissioner declines to enter into a national reciprocal agreement.<br/>
<br/>
<a id="bill.1.19.0"></a><a id="pl.12.30"></a><var>12.30</var>    Sec. 19. Minnesota Statutes 2006, section 256B.058, is amended to read:<br/>
<a id="pl.12.31"></a><var>12.31</var><b>256B.058 TREATMENT OF INCOME OF INSTITUTIONALIZED SPOUSE.</b><br/>
<a id="pl.12.32"></a><var>12.32</var>    Subdivision 1. <b>Income not available.</b> The income described in subdivisions 2 <br/>
<a id="pl.12.33"></a><var>12.33</var>and 3 shall be deducted from an institutionalized spouse's monthly income and is not <br/>
<a id="pl.13.1"></a><var>13.1</var>considered available for payment of the monthly costs of an institutionalized person in <br/>
<a id="pl.13.2"></a><var>13.2</var>the institution spouse after the person has been the institutionalized spouse has been <br/>
<a id="pl.13.3"></a><var>13.3</var>determined eligible for medical assistance.<br/>
<a id="pl.13.4"></a><var>13.4</var>    Subd. 2. <b>Monthly income allowance for community spouse.</b> (a) For an <br/>
<a id="pl.13.5"></a><var>13.5</var>institutionalized spouse with a spouse residing in the community, monthly income may be <br/>
<a id="pl.13.6"></a><var>13.6</var>allocated to the community spouse as a monthly income allowance for the community <br/>
<a id="pl.13.7"></a><var>13.7</var>spouse. Beginning with the first full calendar month the institutionalized spouse is <br/>
<a id="pl.13.8"></a><var>13.8</var>in the institution, the monthly income allowance is not considered available to the <br/>
<a id="pl.13.9"></a><var>13.9</var>institutionalized spouse for monthly payment of costs of care in the institution as long as <br/>
<a id="pl.13.10"></a><var>13.10</var>the income is made available to the community spouse.<br/>
<a id="pl.13.11"></a><var>13.11</var>    (b) The monthly income allowance is the amount by which the community spouse's <br/>
<a id="pl.13.12"></a><var>13.12</var>monthly maintenance needs allowance under paragraphs (c) and (d) exceeds the amount <br/>
<a id="pl.13.13"></a><var>13.13</var>of monthly income otherwise available to the community spouse.<br/>
<a id="pl.13.14"></a><var>13.14</var>    (c) The community spouse's monthly maintenance needs allowance is the lesser of <br/>
<a id="pl.13.15"></a><var>13.15</var>$1,500 or 122 percent of the monthly federal poverty guideline for a family of two plus <br/>
<a id="pl.13.16"></a><var>13.16</var>an excess shelter allowance. The excess shelter allowance is for the amount of shelter <br/>
<a id="pl.13.17"></a><var>13.17</var>expenses that exceed 30 percent of 122 percent of the federal poverty guideline line for a <br/>
<a id="pl.13.18"></a><var>13.18</var>family of two. Shelter expenses are the community spouse's expenses for rent, mortgage <br/>
<a id="pl.13.19"></a><var>13.19</var>payments including principal and interest, taxes, insurance, required maintenance charges <br/>
<a id="pl.13.20"></a><var>13.20</var>for a cooperative or condominium that is the community spouse's principal residence, <br/>
<a id="pl.13.21"></a><var>13.21</var>and the standard utility allowance under section 5(e) of the federal Food Stamp Act of <br/>
<a id="pl.13.22"></a><var>13.22</var>1977. If the community spouse has a required maintenance charge for a cooperative or <br/>
<a id="pl.13.23"></a><var>13.23</var>condominium, the standard utility allowance must be reduced by the amount of utility <br/>
<a id="pl.13.24"></a><var>13.24</var>expenses included in the required maintenance charge.<br/>
<a id="pl.13.25"></a><var>13.25</var>    If the community or institutionalized spouse establishes that the community spouse <br/>
<a id="pl.13.26"></a><var>13.26</var>needs income greater than the monthly maintenance needs allowance determined in this <br/>
<a id="pl.13.27"></a><var>13.27</var>paragraph due to exceptional circumstances resulting in significant financial duress, the <br/>
<a id="pl.13.28"></a><var>13.28</var>monthly maintenance needs allowance may be increased to an amount that provides <br/>
<a id="pl.13.29"></a><var>13.29</var>needed additional income.<br/>
<a id="pl.13.30"></a><var>13.30</var>    (d) The percentage of the federal poverty guideline used to determine the monthly <br/>
<a id="pl.13.31"></a><var>13.31</var>maintenance needs allowance in paragraph (c) is increased to 133 percent on July 1, <br/>
<a id="pl.13.32"></a><var>13.32</var>1991, and to 150 percent on July 1, 1992. Adjustments in the income limits due to annual <br/>
<a id="pl.13.33"></a><var>13.33</var>changes in the federal poverty guidelines shall be implemented the first day of July <br/>
<a id="pl.13.34"></a><var>13.34</var>following publication of the annual changes. The $1,500 maximum must be adjusted <br/>
<a id="pl.13.35"></a><var>13.35</var>January 1, 1990, and every January 1 after that by the same percentage increase in the <br/>
<a id="pl.14.1"></a><var>14.1</var>Consumer Price Index for all urban consumers (all items; United States city average) <br/>
<a id="pl.14.2"></a><var>14.2</var>between the two previous Septembers.<br/>
<a id="pl.14.3"></a><var>14.3</var>    (e) If a court has entered an order against an institutionalized spouse for monthly <br/>
<a id="pl.14.4"></a><var>14.4</var>income for support of the community spouse, the community spouse's monthly income <br/>
<a id="pl.14.5"></a><var>14.5</var>allowance under this subdivision shall not be less than the amount of the monthly income <br/>
<a id="pl.14.6"></a><var>14.6</var>ordered.<br/>
<a id="pl.14.7"></a><var>14.7</var>    Subd. 3. <b>Family allowance.</b> (a) A family allowance determined under paragraph <br/>
<a id="pl.14.8"></a><var>14.8</var>(b) is not considered available to the institutionalized spouse for monthly payment of costs <br/>
<a id="pl.14.9"></a><var>14.9</var>of care in the institution.<br/>
<a id="pl.14.10"></a><var>14.10</var>    (b) The family allowance is equal to one-third of the amount by which 122 percent <br/>
<a id="pl.14.11"></a><var>14.11</var>of the monthly federal poverty guideline for a family of two exceeds the monthly income <br/>
<a id="pl.14.12"></a><var>14.12</var>for that family member.<br/>
<a id="pl.14.13"></a><var>14.13</var>    (c) For purposes of this subdivision, the term family member only includes a <br/>
<a id="pl.14.14"></a><var>14.14</var>minor or dependent child as defined in the Internal Revenue Code, dependent parent, or <br/>
<a id="pl.14.15"></a><var>14.15</var>dependent sibling of the institutionalized or community spouse if the sibling resides with <br/>
<a id="pl.14.16"></a><var>14.16</var>the community spouse.<br/>
<a id="pl.14.17"></a><var>14.17</var>    (d) The percentage of the federal poverty guideline used to determine the family <br/>
<a id="pl.14.18"></a><var>14.18</var>allowance in paragraph (b) is increased to 133 percent on July 1, 1991, and to 150 percent <br/>
<a id="pl.14.19"></a><var>14.19</var>on July 1, 1992. Adjustments in the income limits due to annual changes in the federal <br/>
<a id="pl.14.20"></a><var>14.20</var>poverty guidelines shall be implemented the first day of July following publication of <br/>
<a id="pl.14.21"></a><var>14.21</var>the annual changes.<br/>
<a id="pl.14.22"></a><var>14.22</var>    Subd. 4. <b>Treatment of income.</b> (a) No income of the community spouse will <br/>
<a id="pl.14.23"></a><var>14.23</var>be considered available to an eligible institutionalized spouse, beginning the first full <br/>
<a id="pl.14.24"></a><var>14.24</var>calendar month of institutionalization, except as provided in this subdivision.<br/>
<a id="pl.14.25"></a><var>14.25</var>    (b) In determining the income of an institutionalized spouse or community spouse, <br/>
<a id="pl.14.26"></a><var>14.26</var>after the institutionalized spouse has been determined eligible for medical assistance, <br/>
<a id="pl.14.27"></a><var>14.27</var>the following rules apply.<br/>
<a id="pl.14.28"></a><var>14.28</var>    (1) For income that is not from a trust, availability is determined according to items <br/>
<a id="pl.14.29"></a><var>14.29</var>(i) to (v), unless the instrument providing the income otherwise specifically provides:<br/>
<a id="pl.14.30"></a><var>14.30</var>    (i) if payment is made solely in the name of one spouse, the income is considered <br/>
<a id="pl.14.31"></a><var>14.31</var>available only to that spouse;<br/>
<a id="pl.14.32"></a><var>14.32</var>    (ii) if payment is made in the names of both spouses, one-half of the income is <br/>
<a id="pl.14.33"></a><var>14.33</var>considered available to each;<br/>
<a id="pl.14.34"></a><var>14.34</var>    (iii) if payment is made in the names of one or both spouses together with one or <br/>
<a id="pl.14.35"></a><var>14.35</var>more other persons, the income is considered available to each spouse according to the <br/>
<a id="pl.15.1"></a><var>15.1</var>spouse's interest, or one-half of the joint interest is considered available to each spouse <br/>
<a id="pl.15.2"></a><var>15.2</var>if each spouse's interest is not specified;<br/>
<a id="pl.15.3"></a><var>15.3</var>    (iv) if there is no instrument that establishes ownership, one-half of the income is <br/>
<a id="pl.15.4"></a><var>15.4</var>considered available to each spouse; and<br/>
<a id="pl.15.5"></a><var>15.5</var>    (v) either spouse may rebut the determination of availability of income by showing <br/>
<a id="pl.15.6"></a><var>15.6</var>by a preponderance of the evidence that ownership interests are different than provided <br/>
<a id="pl.15.7"></a><var>15.7</var>above.<br/>
<a id="pl.15.8"></a><var>15.8</var>    (2) For income from a trust, income is considered available to each spouse as <br/>
<a id="pl.15.9"></a><var>15.9</var>provided in the trust. If the trust does not specify an amount available to either or both <br/>
<a id="pl.15.10"></a><var>15.10</var>spouses, availability will be determined according to items (i) to (iii):<br/>
<a id="pl.15.11"></a><var>15.11</var>    (i) if payment of income is made only to one spouse, the income is considered <br/>
<a id="pl.15.12"></a><var>15.12</var>available only to that spouse;<br/>
<a id="pl.15.13"></a><var>15.13</var>    (ii) if payment of income is made to both spouses, one-half is considered available to <br/>
<a id="pl.15.14"></a><var>15.14</var>each; and<br/>
<a id="pl.15.15"></a><var>15.15</var>    (iii) if payment is made to either or both spouses and one or more other persons, <br/>
<a id="pl.15.16"></a><var>15.16</var>the income is considered available to each spouse in proportion to each spouse's interest, <br/>
<a id="pl.15.17"></a><var>15.17</var>or if no such interest is specified, one-half of the joint interest is considered available <br/>
<a id="pl.15.18"></a><var>15.18</var>to each spouse.<br/>
<br/>
<a id="bill.1.20.0"></a><a id="pl.15.19"></a><var>15.19</var>    Sec. 20. Minnesota Statutes 2006, section 256B.059, subdivision 1, is amended to read:<br/>
<a id="pl.15.20"></a><var>15.20</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section and section sections <br/>
<a id="pl.15.21"></a><var>15.21</var>256B.058 and
<statute_ref>256B.0595</statute_ref>, the terms defined in this subdivision have the meanings given <br/>
<a id="pl.15.22"></a><var>15.22</var>them. <br/>
<a id="pl.15.23"></a><var>15.23</var>    (b) "Community spouse" means the spouse of an institutionalized spouse.<br/>
<a id="pl.15.24"></a><var>15.24</var>    (c) "Spousal share" means one-half of the total value of all assets, to the extent that <br/>
<a id="pl.15.25"></a><var>15.25</var>either the institutionalized spouse or the community spouse had an ownership interest at <br/>
<a id="pl.15.26"></a><var>15.26</var>the time of the first continuous period of institutionalization.<br/>
<a id="pl.15.27"></a><var>15.27</var>    (d) "Assets otherwise available to the community spouse" means assets individually <br/>
<a id="pl.15.28"></a><var>15.28</var>or jointly owned by the community spouse, other than assets excluded by subdivision 5, <br/>
<a id="pl.15.29"></a><var>15.29</var>paragraph (c).<br/>
<a id="pl.15.30"></a><var>15.30</var>    (e) "Community spouse asset allowance" is the value of assets that can be transferred <br/>
<a id="pl.15.31"></a><var>15.31</var>under subdivision 3.<br/>
<a id="pl.15.32"></a><var>15.32</var>    (f) "Institutionalized spouse" means a person who is:<br/>
<a id="pl.15.33"></a><var>15.33</var>    (1) in a hospital, nursing facility, or intermediate care facility for persons with <br/>
<a id="pl.15.34"></a><var>15.34</var>developmental disabilities, or receiving home and community-based services under <br/>
<a id="pl.16.1"></a><var>16.1</var>section 
         <statute_ref>256B.0915</statute_ref> or 
<statute_ref>256B.49</statute_ref>, and is expected to remain in the facility or institution or <br/>
<a id="pl.16.2"></a><var>16.2</var>receive the home and community-based services for at least 30 consecutive days; and <br/>
<a id="pl.16.3"></a><var>16.3</var>    (2) married to a person who is not in a hospital, nursing facility, or intermediate <br/>
<a id="pl.16.4"></a><var>16.4</var>care facility for persons with developmental disabilities, and is not receiving home and <br/>
<a id="pl.16.5"></a><var>16.5</var>community-based services under section 
         <statute_ref>256B.0915</statute_ref>, 256B.092,  or 
         <statute_ref>256B.49</statute_ref>. <br/>
<a id="pl.16.6"></a><var>16.6</var>    (g) "For the sole benefit of" means no other individual or entity can benefit in any <br/>
<a id="pl.16.7"></a><var>16.7</var>way from the assets or income at the time of a transfer or at any time in the future.<br/>
<a id="pl.16.8"></a><var>16.8</var>    (h) "Continuous period of institutionalization" means a 30-consecutive-day period <br/>
<a id="pl.16.9"></a><var>16.9</var>of time in which a person is expected to stay in a medical or long-term care facility, <br/>
<a id="pl.16.10"></a><var>16.10</var>or receive home and community-based services that would qualify for coverage under <br/>
<a id="pl.16.11"></a><var>16.11</var>the elderly waiver (EW) or alternative care (AC) programs. For a stay in a facility, the <br/>
<a id="pl.16.12"></a><var>16.12</var>30-consecutive-day period begins on the date of entry into a medical or long-term care <br/>
<a id="pl.16.13"></a><var>16.13</var>facility. For receipt of home and community-based services, the 30-consecutive-day <br/>
<a id="pl.16.14"></a><var>16.14</var>period begins on the date that the following conditions are met:<br/>
<a id="pl.16.15"></a><var>16.15</var>    (1) the person is receiving services that meet the nursing facility level of care <br/>
<a id="pl.16.16"></a><var>16.16</var>determined by a long-term care consultation;<br/>
<a id="pl.16.17"></a><var>16.17</var>    (2) the person has received the long-term care consultation within the past 60 days;<br/>
<a id="pl.16.18"></a><var>16.18</var>    (3) the services are paid by the EW program under section 256B.0915 or the AC <br/>
<a id="pl.16.19"></a><var>16.19</var>program under section 256B.0913 or would qualify for payment under the EW or AC <br/>
<a id="pl.16.20"></a><var>16.20</var>programs if the person were otherwise eligible for either program, and but for the receipt <br/>
<a id="pl.16.21"></a><var>16.21</var>of such services the person would have resided in a nursing facility; and<br/>
<a id="pl.16.22"></a><var>16.22</var>    (4) the services are provided by a licensed provider qualified to provide home and <br/>
<a id="pl.16.23"></a><var>16.23</var>community-based services.<br/>
<br/>
<a id="bill.1.21.0"></a><a id="pl.16.24"></a><var>16.24</var>    Sec. 21. Minnesota Statutes 2006, section 256B.059, subdivision 1a, is amended to <br/>
<a id="pl.16.25"></a><var>16.25</var>read:<br/>
<a id="pl.16.26"></a><var>16.26</var>    Subd. 1a. <b>Institutionalized spouse.</b> The provisions of this section apply only <br/>
<a id="pl.16.27"></a><var>16.27</var>when a spouse is institutionalized for a begins the first continuous period beginning of <br/>
<a id="pl.16.28"></a><var>16.28</var>institutionalization on or after October 1, 1989.<br/>
<br/>
<a id="bill.1.22.0"></a><a id="pl.16.29"></a><var>16.29</var>    Sec. 22. Minnesota Statutes 2006, section 256B.0594, is amended to read:<br/>
<a id="pl.16.30"></a><var>16.30</var><b>256B.0594 PAYMENT OF BENEFITS FROM AN ANNUITY.</b><br/>
<a id="pl.16.31"></a><var>16.31</var>    When payment becomes due under an annuity that names the department a <br/>
<a id="pl.16.32"></a><var>16.32</var>remainder beneficiary as described in section 
<statute_ref>256B.056</statute_ref>, subdivision 11, the issuer shall <br/>
<a id="pl.16.33"></a><var>16.33</var>request and the department shall, within 45 days after receipt of the request, provide <br/>
<a id="pl.16.34"></a><var>16.34</var>a written statement of the total amount of the medical assistance paid or confirmation <br/>
<a id="pl.17.1"></a><var>17.1</var>that any family member designated as a remainder beneficiary meets requirements for <br/>
<a id="pl.17.2"></a><var>17.2</var>qualification as a beneficiary in the first position. Upon timely receipt of the written <br/>
<a id="pl.17.3"></a><var>17.3</var>statement of the amount of medical assistance paid, the issuer shall pay the department an <br/>
<a id="pl.17.4"></a><var>17.4</var>amount equal to the lesser of the amount due the department under the annuity or the total <br/>
<a id="pl.17.5"></a><var>17.5</var>amount of medical assistance paid on behalf of the individual or the individual's spouse. <br/>
<a id="pl.17.6"></a><var>17.6</var>Any amounts remaining after the issuer's payment to the department shall be payable <br/>
<a id="pl.17.7"></a><var>17.7</var>according to the terms of the annuity or similar financial instrument. The county agency <br/>
<a id="pl.17.8"></a><var>17.8</var>or the department shall provide the issuer with the name, address, and telephone number <br/>
<a id="pl.17.9"></a><var>17.9</var>of a unit within the department the issuer can contact to comply with this section. The <br/>
<a id="pl.17.10"></a><var>17.10</var>requirements of section 
         <statute_ref>72A.201</statute_ref>, subdivision 4, clause (3), shall not apply to payments <br/>
<a id="pl.17.11"></a><var>17.11</var>made under this section until the issuer has received final payment information from the <br/>
<a id="pl.17.12"></a><var>17.12</var>department, if the issuer has notified the beneficiary of the requirements of this section at <br/>
<a id="pl.17.13"></a><var>17.13</var>the time it initially requests payment information from the department.<br/>
<br/>
<a id="bill.1.23.0"></a><a id="pl.17.14"></a><var>17.14</var>    Sec. 23. Minnesota Statutes 2006, section 256B.0595, subdivision 1, is amended to <br/>
<a id="pl.17.15"></a><var>17.15</var>read:<br/>
<a id="pl.17.16"></a><var>17.16</var>    Subdivision 1. <b>Prohibited transfers.</b> (a) For transfers of assets made on or before <br/>
<a id="pl.17.17"></a><var>17.17</var>August 10, 1993, if a an institutionalized person or the institutionalized person's spouse <br/>
<a id="pl.17.18"></a><var>17.18</var>has given away, sold, or disposed of, for less than fair market value, any asset or interest <br/>
<a id="pl.17.19"></a><var>17.19</var>therein, except assets other than the homestead that are excluded under the supplemental <br/>
<a id="pl.17.20"></a><var>17.20</var>security program, within 30 months before or any time after the date of institutionalization <br/>
<a id="pl.17.21"></a><var>17.21</var>if the person has been determined eligible for medical assistance, or within 30 months <br/>
<a id="pl.17.22"></a><var>17.22</var>before or any time after the date of the first approved application for medical assistance <br/>
<a id="pl.17.23"></a><var>17.23</var>if the person has not yet been determined eligible for medical assistance, the person is <br/>
<a id="pl.17.24"></a><var>17.24</var>ineligible for long-term care services for the period of time determined under subdivision <br/>
<a id="pl.17.25"></a><var>17.25</var>2.<br/>
<a id="pl.17.26"></a><var>17.26</var>    (b) Effective for transfers made after August 10, 1993, a an institutionalized person, <br/>
<a id="pl.17.27"></a><var>17.27</var>a an institutionalized person's spouse, or any person, court, or administrative body with <br/>
<a id="pl.17.28"></a><var>17.28</var>legal authority to act in place of, on behalf of, at the direction of, or upon the request of the <br/>
<a id="pl.17.29"></a><var>17.29</var>institutionalized person or institutionalized person's spouse, may not give away, sell, or <br/>
<a id="pl.17.30"></a><var>17.30</var>dispose of, for less than fair market value, any asset or interest therein, except assets other <br/>
<a id="pl.17.31"></a><var>17.31</var>than the homestead that are excluded under the supplemental security income program, <br/>
<a id="pl.17.32"></a><var>17.32</var>for the purpose of establishing or maintaining medical assistance eligibility. This applies <br/>
<a id="pl.17.33"></a><var>17.33</var>to all transfers, including those made by a community spouse after the month in which <br/>
<a id="pl.17.34"></a><var>17.34</var>the institutionalized spouse is determined eligible for medical assistance. For purposes of <br/>
<a id="pl.17.35"></a><var>17.35</var>determining eligibility for long-term care services, any transfer of such assets within 36 <br/>
<a id="pl.18.1"></a><var>18.1</var>months before or any time after an institutionalized person applies for requests medical <br/>
<a id="pl.18.2"></a><var>18.2</var>assistance payment of long-term care services, or 36 months before or any time after a <br/>
<a id="pl.18.3"></a><var>18.3</var>medical assistance recipient becomes an institutionalized person, for less than fair market <br/>
<a id="pl.18.4"></a><var>18.4</var>value may be considered. Any such transfer is presumed to have been made for the purpose <br/>
<a id="pl.18.5"></a><var>18.5</var>of establishing or maintaining medical assistance eligibility and the institutionalized <br/>
<a id="pl.18.6"></a><var>18.6</var>person is ineligible for long-term care services for the period of time determined under <br/>
<a id="pl.18.7"></a><var>18.7</var>subdivision 2, unless the institutionalized person furnishes convincing evidence to <br/>
<a id="pl.18.8"></a><var>18.8</var>establish that the transaction was exclusively for another purpose, or unless the transfer is <br/>
<a id="pl.18.9"></a><var>18.9</var>permitted under subdivision 3 or 4.  In the case of payments from a trust or portions of a <br/>
<a id="pl.18.10"></a><var>18.10</var>trust that are considered transfers of assets under federal law, or in the case of any other <br/>
<a id="pl.18.11"></a><var>18.11</var>disposal of assets made on or after February 8, 2006, any transfers made within 60 months <br/>
<a id="pl.18.12"></a><var>18.12</var>before or any time after an institutionalized person applies for requests medical assistance <br/>
<a id="pl.18.13"></a><var>18.13</var>payment of long-term care services and within 60 months before or any time after a <br/>
<a id="pl.18.14"></a><var>18.14</var>medical assistance recipient becomes an institutionalized person, may be considered.<br/>
<a id="pl.18.15"></a><var>18.15</var>    (c) This section applies to transfers, for less than fair market value, of income <br/>
<a id="pl.18.16"></a><var>18.16</var>or assets, including assets that are considered income in the month received, such as <br/>
<a id="pl.18.17"></a><var>18.17</var>inheritances, court settlements, and retroactive benefit payments or income to which the <br/>
<a id="pl.18.18"></a><var>18.18</var>institutionalized person or the institutionalized person's spouse is entitled but does not <br/>
<a id="pl.18.19"></a><var>18.19</var>receive due to action by the institutionalized person, the institutionalized person's spouse, <br/>
<a id="pl.18.20"></a><var>18.20</var>or any person, court, or administrative body with legal authority to act in place of, on <br/>
<a id="pl.18.21"></a><var>18.21</var>behalf of, at the direction of, or upon the request of the institutionalized person or the <br/>
<a id="pl.18.22"></a><var>18.22</var>institutionalized person's spouse.<br/>
<a id="pl.18.23"></a><var>18.23</var>    (d) This section applies to payments for care or personal services provided by a <br/>
<a id="pl.18.24"></a><var>18.24</var>relative, unless the compensation was stipulated in a notarized, written agreement which <br/>
<a id="pl.18.25"></a><var>18.25</var>was in existence when the service was performed, the care or services directly benefited <br/>
<a id="pl.18.26"></a><var>18.26</var>the person, and the payments made represented reasonable compensation for the care <br/>
<a id="pl.18.27"></a><var>18.27</var>or services provided. A notarized written agreement is not required if payment for the <br/>
<a id="pl.18.28"></a><var>18.28</var>services was made within 60 days after the service was provided.<br/>
<a id="pl.18.29"></a><var>18.29</var>    (e) This section applies to the portion of any asset or interest that a an institutionalized <br/>
<a id="pl.18.30"></a><var>18.30</var>person, a an institutionalized person's spouse, or any person, court, or administrative body <br/>
<a id="pl.18.31"></a><var>18.31</var>with legal authority to act in place of, on behalf of, at the direction of, or upon the request <br/>
<a id="pl.18.32"></a><var>18.32</var>of the institutionalized person or the institutionalized person's spouse, transfers to any <br/>
<a id="pl.18.33"></a><var>18.33</var>annuity that exceeds the value of the benefit likely to be returned to the institutionalized <br/>
<a id="pl.18.34"></a><var>18.34</var>person or institutionalized person's spouse while alive, based on estimated life expectancy <br/>
<a id="pl.18.35"></a><var>18.35</var>using the life expectancy tables employed by the supplemental security income program <br/>
<a id="pl.18.36"></a><var>18.36</var>to determine the value of an agreement for services for life as determined according to the <br/>
<a id="pl.19.1"></a><var>19.1</var>current actuarial tables published by the Office of the Chief Actuary of the Social Security <br/>
<a id="pl.19.2"></a><var>19.2</var>Administration. The commissioner may adopt rules reducing life expectancies based on <br/>
<a id="pl.19.3"></a><var>19.3</var>the need for long-term care. This section applies to an annuity described in this paragraph <br/>
<a id="pl.19.4"></a><var>19.4</var>purchased on or after March 1, 2002, that:<br/>
<a id="pl.19.5"></a><var>19.5</var>    (1) is not purchased from an insurance company or financial institution that is <br/>
<a id="pl.19.6"></a><var>19.6</var>subject to licensing or regulation by the Minnesota Department of Commerce or a similar <br/>
<a id="pl.19.7"></a><var>19.7</var>regulatory agency of another state;<br/>
<a id="pl.19.8"></a><var>19.8</var>    (2) does not pay out principal and interest in equal monthly installments; or<br/>
<a id="pl.19.9"></a><var>19.9</var>    (3) does not begin payment at the earliest possible date after annuitization.<br/>
<a id="pl.19.10"></a><var>19.10</var>    (f) Effective for transactions, including the purchase of an annuity, occurring on <br/>
<a id="pl.19.11"></a><var>19.11</var>or after February 8, 2006, the purchase of an annuity by or on behalf of an individual <br/>
<a id="pl.19.12"></a><var>19.12</var>institutionalized person who has applied for or is receiving long-term care services or the <br/>
<a id="pl.19.13"></a><var>19.13</var>individual's institutionalized person's spouse shall be treated as the disposal of an asset for <br/>
<a id="pl.19.14"></a><var>19.14</var>less than fair market value unless the department is named as the a preferred remainder <br/>
<a id="pl.19.15"></a><var>19.15</var>beneficiary in first position for an amount equal to at least the total amount of medical <br/>
<a id="pl.19.16"></a><var>19.16</var>assistance paid on behalf of the individual or the individual's spouse; or the department <br/>
<a id="pl.19.17"></a><var>19.17</var>is named as the remainder beneficiary in second position for an amount equal to at least <br/>
<a id="pl.19.18"></a><var>19.18</var>the total amount of medical assistance paid on behalf of the individual or the individual's <br/>
<a id="pl.19.19"></a><var>19.19</var>spouse after the individual's community spouse or minor or disabled child and is named as <br/>
<a id="pl.19.20"></a><var>19.20</var>the remainder beneficiary in the first position if the community spouse or a representative <br/>
<a id="pl.19.21"></a><var>19.21</var>of the minor or disabled child disposes of the remainder for less than fair market value  as <br/>
<a id="pl.19.22"></a><var>19.22</var>described in section 256B.056, subdivision 11. Any subsequent change to the designation <br/>
<a id="pl.19.23"></a><var>19.23</var>of the department as a preferred remainder beneficiary shall result in the annuity being <br/>
<a id="pl.19.24"></a><var>19.24</var>treated as a disposal of assets for less than fair market value. The amount of such transfer <br/>
<a id="pl.19.25"></a><var>19.25</var>shall be the maximum amount the individual institutionalized person or the individual's <br/>
<a id="pl.19.26"></a><var>19.26</var>institutionalized person's spouse could receive from the annuity or similar financial <br/>
<a id="pl.19.27"></a><var>19.27</var>instrument. Any change in the amount of the income or principal being withdrawn <br/>
<a id="pl.19.28"></a><var>19.28</var>from the annuity or other similar financial instrument at the time of the most recent <br/>
<a id="pl.19.29"></a><var>19.29</var>disclosure shall be deemed to be a transfer of assets for less than fair market value unless <br/>
<a id="pl.19.30"></a><var>19.30</var>the individual institutionalized person or the individual's institutionalized person's spouse <br/>
<a id="pl.19.31"></a><var>19.31</var>demonstrates that the transaction was for fair market value. In the event a distribution <br/>
<a id="pl.19.32"></a><var>19.32</var>of income or principal has been improperly distributed or disbursed from an annuity or <br/>
<a id="pl.19.33"></a><var>19.33</var>other retirement planning instrument of an institutionalized person or the institutionalized <br/>
<a id="pl.19.34"></a><var>19.34</var>person's spouse, a cause of action exists against the individual receiving the improper <br/>
<a id="pl.19.35"></a><var>19.35</var>distribution for the cost of medical assistance services provided or the amount of the <br/>
<a id="pl.19.36"></a><var>19.36</var>improper distribution, whichever is less.<br/>
<a id="pl.20.1"></a><var>20.1</var>    (g) Effective for transactions, including the purchase of an annuity, occurring on <br/>
<a id="pl.20.2"></a><var>20.2</var>or after February 8, 2006, the purchase of an annuity by or on behalf of an individual <br/>
<a id="pl.20.3"></a><var>20.3</var>institutionalized person applying for or receiving long-term care services shall be treated <br/>
<a id="pl.20.4"></a><var>20.4</var>as a disposal of assets for less than fair market value unless it is:<br/>
<a id="pl.20.5"></a><var>20.5</var>    (i) an annuity described in subsection (b) or (q) of section 408 of the Internal <br/>
<a id="pl.20.6"></a><var>20.6</var>Revenue Code of 1986; or <br/>
<a id="pl.20.7"></a><var>20.7</var>    (ii) purchased with proceeds from:<br/>
<a id="pl.20.8"></a><var>20.8</var>    (A) an account or trust described in subsection (a), (c), or (p) of section 408 of the <br/>
<a id="pl.20.9"></a><var>20.9</var>Internal Revenue Code;<br/>
<a id="pl.20.10"></a><var>20.10</var>    (B) a simplified employee pension within the meaning of section 408(k) of the <br/>
<a id="pl.20.11"></a><var>20.11</var>Internal Revenue Code; or<br/>
<a id="pl.20.12"></a><var>20.12</var>    (C) a Roth IRA described in section 408A of the Internal Revenue Code; or<br/>
<a id="pl.20.13"></a><var>20.13</var>    (iii) an annuity that is irrevocable and nonassignable; is actuarially sound as <br/>
<a id="pl.20.14"></a><var>20.14</var>determined in accordance with actuarial publications of the Office of the Chief Actuary of <br/>
<a id="pl.20.15"></a><var>20.15</var>the Social Security Administration; and provides for payments in equal amounts during <br/>
<a id="pl.20.16"></a><var>20.16</var>the term of the annuity, with no deferral and no balloon payments made.<br/>
<a id="pl.20.17"></a><var>20.17</var>     (h) For purposes of this section, long-term care services include services in a nursing <br/>
<a id="pl.20.18"></a><var>20.18</var>facility, services that are eligible for payment according to section 
         <statute_ref>256B.0625, subdivision <br/>
<a id="pl.20.19"></a><var>20.19</var>2
         </statute_ref>, because they are provided in a swing bed, intermediate care facility for persons with <br/>
<a id="pl.20.20"></a><var>20.20</var>developmental disabilities, and home and community-based services provided pursuant <br/>
<a id="pl.20.21"></a><var>20.21</var>to sections 
         <statute_ref>256B.0915</statute_ref>, 
         <statute_ref>256B.092</statute_ref>, and 
         <statute_ref>256B.49</statute_ref>. For purposes of this subdivision and <br/>
<a id="pl.20.22"></a><var>20.22</var>subdivisions 2, 3, and 4, "institutionalized person" includes a person who is an inpatient <br/>
<a id="pl.20.23"></a><var>20.23</var>in a nursing facility or in a swing bed, or intermediate care facility for persons with <br/>
<a id="pl.20.24"></a><var>20.24</var>developmental disabilities or who is receiving home and community-based services under <br/>
<a id="pl.20.25"></a><var>20.25</var>sections 
         <statute_ref>256B.0915</statute_ref>, 
         <statute_ref>256B.092</statute_ref>, and 
         <statute_ref>256B.49</statute_ref>. <br/>
<a id="pl.20.26"></a><var>20.26</var>    (i) This section applies to funds used to purchase a promissory note, loan, or <br/>
<a id="pl.20.27"></a><var>20.27</var>mortgage unless the note, loan, or mortgage:<br/>
<a id="pl.20.28"></a><var>20.28</var>    (1) has a repayment term that is actuarially sound;<br/>
<a id="pl.20.29"></a><var>20.29</var>    (2) provides for payments to be made in equal amounts during the term of the loan, <br/>
<a id="pl.20.30"></a><var>20.30</var>with no deferral and no balloon payments made; and<br/>
<a id="pl.20.31"></a><var>20.31</var>    (3) prohibits the cancellation of the balance upon the death of the lender.<br/>
<a id="pl.20.32"></a><var>20.32</var>    In the case of a promissory note, loan, or mortgage that does not meet an exception <br/>
<a id="pl.20.33"></a><var>20.33</var>in clauses (1) to (3), the value of such note, loan, or mortgage shall be the outstanding <br/>
<a id="pl.20.34"></a><var>20.34</var>balance due as of the date of the individual's application institutionalized person's request <br/>
<a id="pl.20.35"></a><var>20.35</var>for medical assistance payment of long-term care services.<br/>
<a id="pl.21.1"></a><var>21.1</var>    (j) This section applies to the purchase of a life estate interest in another individual's <br/>
<a id="pl.21.2"></a><var>21.2</var>person's home unless the purchaser resides in the home for a period of at least one year <br/>
<a id="pl.21.3"></a><var>21.3</var>after the date of purchase.<br/>
<br/>
<a id="bill.1.24.0"></a><a id="pl.21.4"></a><var>21.4</var>    Sec. 24. Minnesota Statutes 2006, section 256B.0595, subdivision 2, is amended to <br/>
<a id="pl.21.5"></a><var>21.5</var>read:<br/>
<a id="pl.21.6"></a><var>21.6</var>    Subd. 2. <b>Period of ineligibility.</b> (a) For any uncompensated transfer occurring on or <br/>
<a id="pl.21.7"></a><var>21.7</var>before August 10, 1993, the number of months of ineligibility for long-term care services <br/>
<a id="pl.21.8"></a><var>21.8</var>shall be the lesser of 30 months, or the uncompensated transfer amount divided by the <br/>
<a id="pl.21.9"></a><var>21.9</var>average medical assistance rate for nursing facility services in the state in effect on the <br/>
<a id="pl.21.10"></a><var>21.10</var>date of application. The amount used to calculate the average medical assistance payment <br/>
<a id="pl.21.11"></a><var>21.11</var>rate shall be adjusted each July 1 to reflect payment rates for the previous calendar year. <br/>
<a id="pl.21.12"></a><var>21.12</var>The period of ineligibility begins with the month in which the assets were transferred. <br/>
<a id="pl.21.13"></a><var>21.13</var>If the transfer was not reported to the local agency at the time of application, and the <br/>
<a id="pl.21.14"></a><var>21.14</var>applicant received long-term care services during what would have been the period of <br/>
<a id="pl.21.15"></a><var>21.15</var>ineligibility if the transfer had been reported, a cause of action exists against the transferee <br/>
<a id="pl.21.16"></a><var>21.16</var>for the cost of long-term care services provided during the period of ineligibility, or for the <br/>
<a id="pl.21.17"></a><var>21.17</var>uncompensated amount of the transfer, whichever is less. The action may be brought by <br/>
<a id="pl.21.18"></a><var>21.18</var>the state or the local agency responsible for providing medical assistance under chapter <br/>
<a id="pl.21.19"></a><var>21.19</var>256G. The uncompensated transfer amount is the fair market value of the asset at the time <br/>
<a id="pl.21.20"></a><var>21.20</var>it was given away, sold, or disposed of, less the amount of compensation received.<br/>
<a id="pl.21.21"></a><var>21.21</var>    (b) For uncompensated transfers made after August 10, 1993, the number of months <br/>
<a id="pl.21.22"></a><var>21.22</var>of ineligibility for long-term care services shall be the total uncompensated value of the <br/>
<a id="pl.21.23"></a><var>21.23</var>resources transferred divided by the average medical assistance rate for nursing facility <br/>
<a id="pl.21.24"></a><var>21.24</var>services in the state in effect on the date of application. The amount used to calculate the <br/>
<a id="pl.21.25"></a><var>21.25</var>average medical assistance payment rate shall be adjusted each July 1 to reflect payment <br/>
<a id="pl.21.26"></a><var>21.26</var>rates for the previous calendar year. The period of ineligibility begins with the first day <br/>
<a id="pl.21.27"></a><var>21.27</var>of the month after the month in which the assets were transferred except that if one or <br/>
<a id="pl.21.28"></a><var>21.28</var>more uncompensated transfers are made during a period of ineligibility, the total assets <br/>
<a id="pl.21.29"></a><var>21.29</var>transferred during the ineligibility period shall be combined and a penalty period calculated <br/>
<a id="pl.21.30"></a><var>21.30</var>to begin on the first day of the month after the month in which the first uncompensated <br/>
<a id="pl.21.31"></a><var>21.31</var>transfer was made. If the transfer was reported to the local agency after the date that <br/>
<a id="pl.21.32"></a><var>21.32</var>advance notice of a period of ineligibility that affects the next month could be provided to <br/>
<a id="pl.21.33"></a><var>21.33</var>the recipient and the recipient received medical assistance services or the transfer was not <br/>
<a id="pl.21.34"></a><var>21.34</var>reported to the local agency, and the applicant or recipient received medical assistance <br/>
<a id="pl.21.35"></a><var>21.35</var>services during what would have been the period of ineligibility if the transfer had been <br/>
<a id="pl.22.1"></a><var>22.1</var>reported, a cause of action exists against the transferee for the cost of medical assistance <br/>
<a id="pl.22.2"></a><var>22.2</var>that portion of long-term care services provided during the period of ineligibility, or for <br/>
<a id="pl.22.3"></a><var>22.3</var>the uncompensated amount of the transfer, whichever is less. The action may be brought <br/>
<a id="pl.22.4"></a><var>22.4</var>by the state or the local agency responsible for providing medical assistance under chapter <br/>
<a id="pl.22.5"></a><var>22.5</var>256G. The uncompensated transfer amount is the fair market value of the asset at the <br/>
<a id="pl.22.6"></a><var>22.6</var>time it was given away, sold, or disposed of, less the amount of compensation received. <br/>
<a id="pl.22.7"></a><var>22.7</var>Effective for transfers made on or after March 1, 1996, involving persons who apply for <br/>
<a id="pl.22.8"></a><var>22.8</var>medical assistance on or after April 13, 1996, no cause of action exists for a transfer unless:<br/>
<a id="pl.22.9"></a><var>22.9</var>    (1) the transferee knew or should have known that the transfer was being made by a <br/>
<a id="pl.22.10"></a><var>22.10</var>person who was a resident of a long-term care facility or was receiving that level of care in <br/>
<a id="pl.22.11"></a><var>22.11</var>the community at the time of the transfer;<br/>
<a id="pl.22.12"></a><var>22.12</var>    (2) the transferee knew or should have known that the transfer was being made to <br/>
<a id="pl.22.13"></a><var>22.13</var>assist the person to qualify for or retain medical assistance eligibility; or<br/>
<a id="pl.22.14"></a><var>22.14</var>    (3) the transferee actively solicited the transfer with intent to assist the person to <br/>
<a id="pl.22.15"></a><var>22.15</var>qualify for or retain eligibility for medical assistance.<br/>
<a id="pl.22.16"></a><var>22.16</var>    (c) For uncompensated transfers made on or after February 8, 2006, the period <br/>
<a id="pl.22.17"></a><var>22.17</var>of ineligibility:<br/>
<a id="pl.22.18"></a><var>22.18</var>    (1) for uncompensated transfers by or on behalf of individuals receiving medical <br/>
<a id="pl.22.19"></a><var>22.19</var>assistance payment of long-term care services, begins on the first day of the month <br/>
<a id="pl.22.20"></a><var>22.20</var>in which following advance notice can be given following of the penalty period, but no <br/>
<a id="pl.22.21"></a><var>22.21</var>later than the first day of the month in which assets have been transferred for less than <br/>
<a id="pl.22.22"></a><var>22.22</var>fair market value, that follows three full calendar months from the date of the report <br/>
<a id="pl.22.23"></a><var>22.23</var>or discovery of the transfer; or <br/>
<a id="pl.22.24"></a><var>22.24</var>    (2) for uncompensated transfers by individuals requesting medical assistance <br/>
<a id="pl.22.25"></a><var>22.25</var>payment of long-term care services, begins the date on which the individual is eligible <br/>
<a id="pl.22.26"></a><var>22.26</var>for medical assistance under the Medicaid state plan and would otherwise be receiving <br/>
<a id="pl.22.27"></a><var>22.27</var>long-term care services based on an approved application for such care but for the <br/>
<a id="pl.22.28"></a><var>22.28</var>application of the penalty period, whichever is later,; and which does not occur <br/>
<a id="pl.22.29"></a><var>22.29</var>    (3) cannot begin during any other period of ineligibility.<br/>
<a id="pl.22.30"></a><var>22.30</var>    (d) If a calculation of a penalty period results in a partial month, payments for <br/>
<a id="pl.22.31"></a><var>22.31</var>long-term care services shall be reduced in an amount equal to the fraction. <br/>
<a id="pl.22.32"></a><var>22.32</var>    (e) In the case of multiple fractional transfers of assets in more than one month for <br/>
<a id="pl.22.33"></a><var>22.33</var>less than fair market value on or after February 8, 2006, the period of ineligibility is <br/>
<a id="pl.22.34"></a><var>22.34</var>calculated by treating the total, cumulative, uncompensated value of all assets transferred <br/>
<a id="pl.22.35"></a><var>22.35</var>during all months on or after February 8, 2006, as one transfer.<br/>
<br/>
<a id="bill.1.25.0"></a><a id="pl.23.1"></a><var>23.1</var>    Sec. 25. Minnesota Statutes 2006, section 256B.0595, subdivision 3, is amended to <br/>
<a id="pl.23.2"></a><var>23.2</var>read:<br/>
<a id="pl.23.3"></a><var>23.3</var>    Subd. 3. <b>Homestead exception to transfer prohibition.</b> (a) An institutionalized <br/>
<a id="pl.23.4"></a><var>23.4</var>person is not ineligible for long-term care services due to a transfer of assets for less than <br/>
<a id="pl.23.5"></a><var>23.5</var>fair market value if the asset transferred was a homestead and:<br/>
<a id="pl.23.6"></a><var>23.6</var>    (1) title to the homestead was transferred to the individual's:<br/>
<a id="pl.23.7"></a><var>23.7</var>    (i) spouse;<br/>
<a id="pl.23.8"></a><var>23.8</var>    (ii) child who is under age 21;<br/>
<a id="pl.23.9"></a><var>23.9</var>    (iii) blind or permanently and totally disabled child as defined in the supplemental <br/>
<a id="pl.23.10"></a><var>23.10</var>security income program;<br/>
<a id="pl.23.11"></a><var>23.11</var>    (iv) sibling who has equity interest in the home and who was residing in the home <br/>
<a id="pl.23.12"></a><var>23.12</var>for a period of at least one year immediately before the date of the individual's admission <br/>
<a id="pl.23.13"></a><var>23.13</var>to the facility; or<br/>
<a id="pl.23.14"></a><var>23.14</var>    (v) son or daughter who was residing in the individual's home for a period of at least <br/>
<a id="pl.23.15"></a><var>23.15</var>two years immediately before the date of the individual's admission to the facility the <br/>
<a id="pl.23.16"></a><var>23.16</var>individual became an institutionalized person, and who provided care to the individual <br/>
<a id="pl.23.17"></a><var>23.17</var>that, as certified by the individual's attending physician, permitted the individual to reside <br/>
<a id="pl.23.18"></a><var>23.18</var>at home rather than receive care in an institution or facility;<br/>
<a id="pl.23.19"></a><var>23.19</var>    (2) a satisfactory showing is made that the individual intended to dispose of the <br/>
<a id="pl.23.20"></a><var>23.20</var>homestead at fair market value or for other valuable consideration; or<br/>
<a id="pl.23.21"></a><var>23.21</var>    (3) the local agency grants a waiver of a penalty resulting from a transfer for less <br/>
<a id="pl.23.22"></a><var>23.22</var>than fair market value because denial of eligibility would cause undue hardship for the <br/>
<a id="pl.23.23"></a><var>23.23</var>individual, based on imminent threat to the individual's health and well-being. Whenever <br/>
<a id="pl.23.24"></a><var>23.24</var>an applicant or recipient is denied eligibility because of a transfer for less than fair market <br/>
<a id="pl.23.25"></a><var>23.25</var>value, the local agency shall notify the applicant or recipient that the applicant or recipient <br/>
<a id="pl.23.26"></a><var>23.26</var>may request a waiver of the penalty if the denial of eligibility will cause undue hardship. <br/>
<a id="pl.23.27"></a><var>23.27</var>With the written consent of the individual or the personal representative of the individual, <br/>
<a id="pl.23.28"></a><var>23.28</var>a long-term care facility in which an individual is residing may file an undue hardship <br/>
<a id="pl.23.29"></a><var>23.29</var>waiver request, on behalf of the individual who is denied eligibility for long-term care <br/>
<a id="pl.23.30"></a><var>23.30</var>services on or after July 1, 2006, due to a period of ineligibility resulting from a transfer on <br/>
<a id="pl.23.31"></a><var>23.31</var>or after February 8, 2006. In evaluating a waiver, the local agency shall take into account <br/>
<a id="pl.23.32"></a><var>23.32</var>whether the individual was the victim of financial exploitation, whether the individual has <br/>
<a id="pl.23.33"></a><var>23.33</var>made reasonable efforts to recover the transferred property or resource, and other factors <br/>
<a id="pl.23.34"></a><var>23.34</var>relevant to a determination of hardship. If the local agency does not approve a hardship <br/>
<a id="pl.23.35"></a><var>23.35</var>waiver, the local agency shall issue a written notice to the individual stating the reasons <br/>
<a id="pl.23.36"></a><var>23.36</var>for the denial and the process for appealing the local agency's decision.<br/>
<a id="pl.24.1"></a><var>24.1</var>    (b) When a waiver is granted under paragraph (a), clause (3), a cause of action exists <br/>
<a id="pl.24.2"></a><var>24.2</var>against the person to whom the homestead was transferred for that portion of long-term <br/>
<a id="pl.24.3"></a><var>24.3</var>care services granted provided within:<br/>
<a id="pl.24.4"></a><var>24.4</var>    (1) 30 months of a transfer made on or before August 10, 1993;<br/>
<a id="pl.24.5"></a><var>24.5</var>    (2) 60 months if the homestead was transferred after August 10, 1993, to a trust or <br/>
<a id="pl.24.6"></a><var>24.6</var>portion of a trust that is considered a transfer of assets under federal law; <br/>
<a id="pl.24.7"></a><var>24.7</var>    (3) 36 months if transferred in any other manner after August 10, 1993, but prior <br/>
<a id="pl.24.8"></a><var>24.8</var>to February 8, 2006; or<br/>
<a id="pl.24.9"></a><var>24.9</var>    (4) 60 months if the homestead was transferred on or after February 8, 2006,<br/>
<a id="pl.24.10"></a><var>24.10</var>or the amount of the uncompensated transfer, whichever is less, together with the <br/>
<a id="pl.24.11"></a><var>24.11</var>costs incurred due to the action. The action shall be brought by the state unless the <br/>
<a id="pl.24.12"></a><var>24.12</var>state delegates this responsibility to the local agency responsible for providing medical <br/>
<a id="pl.24.13"></a><var>24.13</var>assistance under chapter 256G.<br/>
<br/>
<a id="bill.1.26.0"></a><a id="pl.24.14"></a><var>24.14</var>    Sec. 26. Minnesota Statutes 2006, section 256B.0595, subdivision 4, is amended to <br/>
<a id="pl.24.15"></a><var>24.15</var>read:<br/>
<a id="pl.24.16"></a><var>24.16</var>    Subd. 4. <b>Other exceptions to transfer prohibition.</b> An institutionalized person <br/>
<a id="pl.24.17"></a><var>24.17</var>who has made, or whose spouse has made a transfer prohibited by subdivision 1, is not <br/>
<a id="pl.24.18"></a><var>24.18</var>ineligible for long-term care services if one of the following conditions applies:<br/>
<a id="pl.24.19"></a><var>24.19</var>    (1) the assets were transferred to the individual's spouse or to another for the sole <br/>
<a id="pl.24.20"></a><var>24.20</var>benefit of the spouse; or<br/>
<a id="pl.24.21"></a><var>24.21</var>    (2) the institutionalized spouse, prior to being institutionalized, transferred assets <br/>
<a id="pl.24.22"></a><var>24.22</var>to a spouse, provided that the spouse to whom the assets were transferred does not then <br/>
<a id="pl.24.23"></a><var>24.23</var>transfer those assets to another person for less than fair market value. (At the time when <br/>
<a id="pl.24.24"></a><var>24.24</var>one spouse is institutionalized, assets must be allocated between the spouses as provided <br/>
<a id="pl.24.25"></a><var>24.25</var>under section 
         <statute_ref>256B.059</statute_ref>); or<br/>
<a id="pl.24.26"></a><var>24.26</var>    (3) the assets were transferred to the individual's child who is blind or permanently <br/>
<a id="pl.24.27"></a><var>24.27</var>and totally disabled as determined in the supplemental security income program; or<br/>
<a id="pl.24.28"></a><var>24.28</var>    (4) a satisfactory showing is made that the individual intended to dispose of the <br/>
<a id="pl.24.29"></a><var>24.29</var>assets either at fair market value or for other valuable consideration; or<br/>
<a id="pl.24.30"></a><var>24.30</var>    (5) the local agency determines that denial of eligibility for long-term care services <br/>
<a id="pl.24.31"></a><var>24.31</var>would work an undue hardship and grants a waiver of a penalty resulting from a transfer <br/>
<a id="pl.24.32"></a><var>24.32</var>for less than fair market value based on an imminent threat to the individual's health <br/>
<a id="pl.24.33"></a><var>24.33</var>and well-being. Whenever an applicant or recipient is denied eligibility because of a <br/>
<a id="pl.24.34"></a><var>24.34</var>transfer for less than fair market value, the local agency shall notify the applicant or <br/>
<a id="pl.24.35"></a><var>24.35</var>recipient that the applicant or recipient may request a waiver of the penalty if the denial of <br/>
<a id="pl.25.1"></a><var>25.1</var>eligibility will cause undue hardship. With the written consent of the individual or the <br/>
<a id="pl.25.2"></a><var>25.2</var>personal representative of the individual, a long-term care facility in which an individual <br/>
<a id="pl.25.3"></a><var>25.3</var>is residing may file an undue hardship waiver request, on behalf of the individual who <br/>
<a id="pl.25.4"></a><var>25.4</var>is denied eligibility for long-term care services on or after July 1, 2006, due to a period <br/>
<a id="pl.25.5"></a><var>25.5</var>of ineligibility resulting from a transfer on or after February 8, 2006. In evaluating a <br/>
<a id="pl.25.6"></a><var>25.6</var>waiver, the local agency shall take into account whether the individual was the victim of <br/>
<a id="pl.25.7"></a><var>25.7</var>financial exploitation, whether the individual has made reasonable efforts to recover the <br/>
<a id="pl.25.8"></a><var>25.8</var>transferred property or resource, whether the individual has taken any action to prevent <br/>
<a id="pl.25.9"></a><var>25.9</var>the designation of the department as a remainder beneficiary on an annuity as described <br/>
<a id="pl.25.10"></a><var>25.10</var>in section 
         <statute_ref>256B.056</statute_ref>, subdivision 11, and other factors relevant to a determination of <br/>
<a id="pl.25.11"></a><var>25.11</var>hardship. The local agency shall make a determination within 30 days of the receipt of all <br/>
<a id="pl.25.12"></a><var>25.12</var>necessary information needed to make such a determination. If the local agency does not <br/>
<a id="pl.25.13"></a><var>25.13</var>approve a hardship waiver, the local agency shall issue a written notice to the individual <br/>
<a id="pl.25.14"></a><var>25.14</var>stating the reasons for the denial and the process for appealing the local agency's decision. <br/>
<a id="pl.25.15"></a><var>25.15</var>When a waiver is granted, a cause of action exists against the person to whom the assets <br/>
<a id="pl.25.16"></a><var>25.16</var>were transferred for that portion of long-term care services granted provided within:<br/>
<a id="pl.25.17"></a><var>25.17</var>    (i) 30 months of a transfer made on or before August 10, 1993;<br/>
<a id="pl.25.18"></a><var>25.18</var>    (ii) 60 months of a transfer if the assets were transferred after August 30, 1993, to a <br/>
<a id="pl.25.19"></a><var>25.19</var>trust or portion of a trust that is considered a transfer of assets under federal law; <br/>
<a id="pl.25.20"></a><var>25.20</var>    (iii) 36 months of a transfer if transferred in any other manner after August 10, 1993, <br/>
<a id="pl.25.21"></a><var>25.21</var>but prior to February 8, 2006; or<br/>
<a id="pl.25.22"></a><var>25.22</var>    (iv) 60 months of any transfer made on or after February 8, 2006,<br/>
<a id="pl.25.23"></a><var>25.23</var>or the amount of the uncompensated transfer, whichever is less, together with the <br/>
<a id="pl.25.24"></a><var>25.24</var>costs incurred due to the action. The action shall be brought by the state unless the <br/>
<a id="pl.25.25"></a><var>25.25</var>state delegates this responsibility to the local agency responsible for providing medical <br/>
<a id="pl.25.26"></a><var>25.26</var>assistance under this chapter; or<br/>
<a id="pl.25.27"></a><var>25.27</var>    (6) for transfers occurring after August 10, 1993, the assets were transferred by <br/>
<a id="pl.25.28"></a><var>25.28</var>the person or person's spouse: (i) into a trust established for the sole benefit of a son or <br/>
<a id="pl.25.29"></a><var>25.29</var>daughter of any age who is blind or disabled as defined by the Supplemental Security <br/>
<a id="pl.25.30"></a><var>25.30</var>Income program; or (ii) into a trust established for the sole benefit of an individual who is <br/>
<a id="pl.25.31"></a><var>25.31</var>under 65 years of age who is disabled as defined by the Supplemental Security Income <br/>
<a id="pl.25.32"></a><var>25.32</var>program.<br/>
<a id="pl.25.33"></a><var>25.33</var>    "For the sole benefit of" has the meaning found in section 
         <statute_ref>256B.059, subdivision 1</statute_ref>. <br/>
<br/>
<a id="bill.1.27.0"></a><a id="pl.25.34"></a><var>25.34</var>    Sec. 27. Minnesota Statutes 2006, section 256B.0595, is amended by adding a <br/>
<a id="pl.25.35"></a><var>25.35</var>subdivision to read:<br/>
<a id="pl.26.1"></a><var>26.1</var>    Subd. 8. <b>Cause of action; transfer prior to death.</b> (a) A cause of action exists <br/>
<a id="pl.26.2"></a><var>26.2</var>against a transferee who receives assets for less than fair market value, either:<br/>
<a id="pl.26.3"></a><var>26.3</var>    (1) from a person who was a recipient of medical assistance and who made an <br/>
<a id="pl.26.4"></a><var>26.4</var>uncompensated transfer that was known to the county agency but a penalty period could <br/>
<a id="pl.26.5"></a><var>26.5</var>not be implemented under this section due to the death of the person; or<br/>
<a id="pl.26.6"></a><var>26.6</var>    (2) from a person who was a recipient of medical assistance who made an <br/>
<a id="pl.26.7"></a><var>26.7</var>uncompensated transfer that was not known to the county agency and the transfer was <br/>
<a id="pl.26.8"></a><var>26.8</var>made with the intent to hinder, delay, or defraud the state or local agency from recovering <br/>
<a id="pl.26.9"></a><var>26.9</var>as allowed under section 256B.15. In determining intent under this clause consideration <br/>
<a id="pl.26.10"></a><var>26.10</var>may be given, among other factors, to whether:<br/>
<a id="pl.26.11"></a><var>26.11</var>    (i) the transfer was to a family member;<br/>
<a id="pl.26.12"></a><var>26.12</var>    (ii) the transferor retained possession or control of the property after the transfer;<br/>
<a id="pl.26.13"></a><var>26.13</var>    (iii) the transfer was concealed;<br/>
<a id="pl.26.14"></a><var>26.14</var>    (iv) the transfer included the majority of the transferor's assets;<br/>
<a id="pl.26.15"></a><var>26.15</var>    (v) the value of the consideration received was not reasonably equivalent to the fair <br/>
<a id="pl.26.16"></a><var>26.16</var>market value of the property; and<br/>
<a id="pl.26.17"></a><var>26.17</var>    (vi) the transfer occurred shortly before the death of the transferor.<br/>
<a id="pl.26.18"></a><var>26.18</var>    (b) No cause of action exists under this subdivision unless:<br/>
<a id="pl.26.19"></a><var>26.19</var>    (1) the transferee knew or should have known that the transfer was being made by a <br/>
<a id="pl.26.20"></a><var>26.20</var>person who was receiving medical assistance as described in section 256B.15, subdivision <br/>
<a id="pl.26.21"></a><var>26.21</var>1, paragraph (b); and <br/>
<a id="pl.26.22"></a><var>26.22</var>    (2) the transferee received the asset without providing a reasonable equivalent fair <br/>
<a id="pl.26.23"></a><var>26.23</var>market value in exchange for the transfer.<br/>
<a id="pl.26.24"></a><var>26.24</var>    (c) The cause of action is for the uncompensated amount of the transfer or the <br/>
<a id="pl.26.25"></a><var>26.25</var>amount of medical assistance paid on behalf of the person, whichever is less. The <br/>
<a id="pl.26.26"></a><var>26.26</var>uncompensated transfer amount is the fair market value of the asset at the time it was <br/>
<a id="pl.26.27"></a><var>26.27</var>given away, sold, or disposed of, less the amount of the compensation received.<br/>
<br/>
<a id="bill.1.28.0"></a><a id="pl.26.28"></a><var>26.28</var>    Sec. 28. Minnesota Statutes 2006, section 256B.0595, is amended by adding a <br/>
<a id="pl.26.29"></a><var>26.29</var>subdivision to read:<br/>
<a id="pl.26.30"></a><var>26.30</var>    Subd. 9. <b>Filing cause of action; limitation.</b> (a) The county of financial <br/>
<a id="pl.26.31"></a><var>26.31</var>responsibility under chapter 256G may bring a cause of action under any or all of the <br/>
<a id="pl.26.32"></a><var>26.32</var>following:<br/>
<a id="pl.26.33"></a><var>26.33</var>    (1) subdivision 1, paragraph (f);<br/>
<a id="pl.26.34"></a><var>26.34</var>    (2) subdivision 2, paragraphs (a) and (b);<br/>
<a id="pl.26.35"></a><var>26.35</var>    (3) subdivision 3, paragraph (b);<br/>
<a id="pl.27.1"></a><var>27.1</var>    (4) subdivision 4, clause (5); and<br/>
<a id="pl.27.2"></a><var>27.2</var>    (5) subdivision 8<br/>
<a id="pl.27.3"></a><var>27.3</var>on behalf of the claimant who must be the commissioner.<br/>
<a id="pl.27.4"></a><var>27.4</var>    (b) Notwithstanding any other law to the contrary, a cause of action under <br/>
<a id="pl.27.5"></a><var>27.5</var>subdivision 2, paragraph (a) or (b), or 8, must be commenced within six years of the date <br/>
<a id="pl.27.6"></a><var>27.6</var>the local agency determines that a transfer was made for less than fair market value. <br/>
<a id="pl.27.7"></a><var>27.7</var>Notwithstanding any other law to the contrary, a cause of action under subdivision 3, <br/>
<a id="pl.27.8"></a><var>27.8</var>paragraph (b), or 4, clause (5), must be commenced within six years of the date of <br/>
<a id="pl.27.9"></a><var>27.9</var>approval of a waiver of the penalty period for a transfer for less than fair market value <br/>
<a id="pl.27.10"></a><var>27.10</var>based on undue hardship.<br/>
<br/>
<a id="bill.1.29.0"></a><a id="pl.27.11"></a><var>27.11</var>    Sec. 29. Minnesota Statutes 2006, section 256B.0625, subdivision 3c, is amended to <br/>
<a id="pl.27.12"></a><var>27.12</var>read:<br/>
<a id="pl.27.13"></a><var>27.13</var>    Subd. 3c. <b>Health Services Policy Committee.</b> The commissioner, after receiving <br/>
<a id="pl.27.14"></a><var>27.14</var>recommendations from professional physician associations, professional associations <br/>
<a id="pl.27.15"></a><var>27.15</var>representing licensed nonphysician health care professionals, and consumer groups, shall <br/>
<a id="pl.27.16"></a><var>27.16</var>establish a 13-member Health Services Policy Committee, which consists of 12 voting <br/>
<a id="pl.27.17"></a><var>27.17</var>members and one nonvoting member. The Health Services Policy Committee shall advise <br/>
<a id="pl.27.18"></a><var>27.18</var>the commissioner regarding health services pertaining to the administration of health <br/>
<a id="pl.27.19"></a><var>27.19</var>care benefits covered under the medical assistance, general assistance medical care, and <br/>
<a id="pl.27.20"></a><var>27.20</var>MinnesotaCare programs. The Health Services Policy Committee shall meet at least <br/>
<a id="pl.27.21"></a><var>27.21</var>quarterly. The Health Services Policy Committee shall annually elect a physician chair <br/>
<a id="pl.27.22"></a><var>27.22</var>from among its members, who shall work directly with the commissioner's medical <br/>
<a id="pl.27.23"></a><var>27.23</var>director, to establish the agenda for each meeting. The Health Services Policy Committee <br/>
<a id="pl.27.24"></a><var>27.24</var>shall also recommend criteria for verifying centers of excellence for specific aspects of <br/>
<a id="pl.27.25"></a><var>27.25</var>medical care where a specific set of combined services, a volume of patients necessary to <br/>
<a id="pl.27.26"></a><var>27.26</var>maintain a high level of competency, or a specific level of technical capacity is associated <br/>
<a id="pl.27.27"></a><var>27.27</var>with improved health outcomes.<br/>
<br/>
<a id="bill.1.30.0"></a><a id="pl.27.28"></a><var>27.28</var>    Sec. 30. Minnesota Statutes 2006, section 256B.0625, subdivision 13g, is amended to <br/>
<a id="pl.27.29"></a><var>27.29</var>read:<br/>
<a id="pl.27.30"></a><var>27.30</var>    Subd. 13g. <b>Preferred drug list.</b> (a) The commissioner shall adopt and implement a <br/>
<a id="pl.27.31"></a><var>27.31</var>preferred drug list by January 1, 2004. The commissioner may enter into a contract with <br/>
<a id="pl.27.32"></a><var>27.32</var>a vendor or one or more states for the purpose of participating in a multistate preferred <br/>
<a id="pl.27.33"></a><var>27.33</var>drug list and supplemental rebate program. The commissioner shall ensure that any <br/>
<a id="pl.27.34"></a><var>27.34</var>contract meets all federal requirements and maximizes federal financial participation. The <br/>
<a id="pl.28.1"></a><var>28.1</var>commissioner shall publish the preferred drug list annually in the State Register and shall <br/>
<a id="pl.28.2"></a><var>28.2</var>maintain an accurate and up-to-date list on the agency Web site.<br/>
<a id="pl.28.3"></a><var>28.3</var>    (b) The commissioner may add to, delete from, and otherwise modify the preferred <br/>
<a id="pl.28.4"></a><var>28.4</var>drug list, after consulting with the Formulary Committee and appropriate medical <br/>
<a id="pl.28.5"></a><var>28.5</var>specialists and providing public notice and the opportunity for public comment.<br/>
<a id="pl.28.6"></a><var>28.6</var>    (c) The commissioner shall adopt and administer the preferred drug list as part of the <br/>
<a id="pl.28.7"></a><var>28.7</var>administration of the supplemental drug rebate program. Reimbursement for prescription <br/>
<a id="pl.28.8"></a><var>28.8</var>drugs not on the preferred drug list may be subject to prior authorization, unless the drug <br/>
<a id="pl.28.9"></a><var>28.9</var>manufacturer signs a supplemental rebate contract.<br/>
<a id="pl.28.10"></a><var>28.10</var>    (d) For purposes of this subdivision, "preferred drug list" means a list of prescription <br/>
<a id="pl.28.11"></a><var>28.11</var>drugs within designated therapeutic classes selected by the commissioner, for which prior <br/>
<a id="pl.28.12"></a><var>28.12</var>authorization based on the identity of the drug or class is not required.<br/>
<a id="pl.28.13"></a><var>28.13</var>    (e) The commissioner shall seek any federal waivers or approvals necessary to <br/>
<a id="pl.28.14"></a><var>28.14</var>implement this subdivision.<br/>
<br/>
<a id="bill.1.31.0"></a><a id="pl.28.15"></a><var>28.15</var>    Sec. 31. Minnesota Statutes 2006, section 256B.0625, subdivision 13h, is amended to <br/>
<a id="pl.28.16"></a><var>28.16</var>read:<br/>
<a id="pl.28.17"></a><var>28.17</var>    Subd. 13h. <b>Medication therapy management services.</b> (a) Medical assistance <br/>
<a id="pl.28.18"></a><var>28.18</var>and general assistance medical care cover medication therapy management services for <br/>
<a id="pl.28.19"></a><var>28.19</var>a recipient taking four or more prescriptions to treat or prevent two or more chronic <br/>
<a id="pl.28.20"></a><var>28.20</var>medical conditions, or a recipient with a drug therapy problem that is identified or prior <br/>
<a id="pl.28.21"></a><var>28.21</var>authorized by the commissioner that has resulted or is likely to result in significant <br/>
<a id="pl.28.22"></a><var>28.22</var>nondrug program costs. The commissioner may cover medical therapy management <br/>
<a id="pl.28.23"></a><var>28.23</var>services under MinnesotaCare if the commissioner determines this is cost-effective. For <br/>
<a id="pl.28.24"></a><var>28.24</var>purposes of this subdivision, "medication therapy management" means the provision <br/>
<a id="pl.28.25"></a><var>28.25</var>of the following pharmaceutical care services by a licensed pharmacist to optimize the <br/>
<a id="pl.28.26"></a><var>28.26</var>therapeutic outcomes of the patient's medications:<br/>
<a id="pl.28.27"></a><var>28.27</var>    (1) performing or obtaining necessary assessments of the patient's health status;<br/>
<a id="pl.28.28"></a><var>28.28</var>    (2) formulating a medication treatment plan;<br/>
<a id="pl.28.29"></a><var>28.29</var>    (3) monitoring and evaluating the patient's response to therapy, including safety <br/>
<a id="pl.28.30"></a><var>28.30</var>and effectiveness;<br/>
<a id="pl.28.31"></a><var>28.31</var>    (4) performing a comprehensive medication review to identify, resolve, and prevent <br/>
<a id="pl.28.32"></a><var>28.32</var>medication-related problems, including adverse drug events;<br/>
<a id="pl.28.33"></a><var>28.33</var>    (5) documenting the care delivered and communicating essential information to <br/>
<a id="pl.28.34"></a><var>28.34</var>the patient's other primary care providers;<br/>
<a id="pl.29.1"></a><var>29.1</var>    (6) providing verbal education and training designed to enhance patient <br/>
<a id="pl.29.2"></a><var>29.2</var>understanding and appropriate use of the patient's medications;<br/>
<a id="pl.29.3"></a><var>29.3</var>    (7) providing information, support services, and resources designed to enhance <br/>
<a id="pl.29.4"></a><var>29.4</var>patient adherence with the patient's therapeutic regimens; and<br/>
<a id="pl.29.5"></a><var>29.5</var>    (8) coordinating and integrating medication therapy management services within the <br/>
<a id="pl.29.6"></a><var>29.6</var>broader health care management services being provided to the patient.<br/>
<a id="pl.29.7"></a><var>29.7</var>Nothing in this subdivision shall be construed to expand or modify the scope of practice of <br/>
<a id="pl.29.8"></a><var>29.8</var>the pharmacist as defined in section 
         <statute_ref>151.01, subdivision 27</statute_ref>.<br/>
<a id="pl.29.9"></a><var>29.9</var>    (b) To be eligible for reimbursement for services under this subdivision, a pharmacist <br/>
<a id="pl.29.10"></a><var>29.10</var>must meet the following requirements:<br/>
<a id="pl.29.11"></a><var>29.11</var>    (1) have a valid license issued under chapter 151;<br/>
<a id="pl.29.12"></a><var>29.12</var>    (2) have graduated from an accredited college of pharmacy on or after May 1996, or <br/>
<a id="pl.29.13"></a><var>29.13</var>completed a structured and comprehensive education program approved by the Board of <br/>
<a id="pl.29.14"></a><var>29.14</var>Pharmacy and the American Council of Pharmaceutical Education for the provision and <br/>
<a id="pl.29.15"></a><var>29.15</var>documentation of pharmaceutical care management services that has both clinical and <br/>
<a id="pl.29.16"></a><var>29.16</var>didactic elements;<br/>
<a id="pl.29.17"></a><var>29.17</var>    (3) be practicing in an ambulatory care setting as part of a multidisciplinary team or <br/>
<a id="pl.29.18"></a><var>29.18</var>have developed a structured patient care process that is offered in a private or semiprivate <br/>
<a id="pl.29.19"></a><var>29.19</var>patient care area that is separate from the commercial business that also occurs in the <br/>
<a id="pl.29.20"></a><var>29.20</var>setting, or in home settings, excluding long-term care and group homes, if the service is <br/>
<a id="pl.29.21"></a><var>29.21</var>ordered by the provider-directed care coordination team; and<br/>
<a id="pl.29.22"></a><var>29.22</var>    (4) make use of an electronic patient record system that meets state standards.<br/>
<a id="pl.29.23"></a><var>29.23</var>    (c) For purposes of reimbursement for medication therapy management services, <br/>
<a id="pl.29.24"></a><var>29.24</var>the commissioner may enroll individual pharmacists as medical assistance and general <br/>
<a id="pl.29.25"></a><var>29.25</var>assistance medical care providers. The commissioner may also establish contact <br/>
<a id="pl.29.26"></a><var>29.26</var>requirements between the pharmacist and recipient, including limiting the number of <br/>
<a id="pl.29.27"></a><var>29.27</var>reimbursable consultations per recipient.<br/>
<a id="pl.29.28"></a><var>29.28</var>    (d) The commissioner, after receiving recommendations from professional medical <br/>
<a id="pl.29.29"></a><var>29.29</var>associations, professional pharmacy associations, and consumer groups, shall convene <br/>
<a id="pl.29.30"></a><var>29.30</var>an 11-member Medication Therapy Management Advisory Committee to advise <br/>
<a id="pl.29.31"></a><var>29.31</var>the commissioner on the implementation and administration of medication therapy <br/>
<a id="pl.29.32"></a><var>29.32</var>management services. The committee shall be comprised of: two licensed physicians; <br/>
<a id="pl.29.33"></a><var>29.33</var>two licensed pharmacists; two consumer representatives; two health plan company <br/>
<a id="pl.29.34"></a><var>29.34</var>representatives; and three members with expertise in the area of medication therapy <br/>
<a id="pl.29.35"></a><var>29.35</var>management, who may be licensed physicians or licensed pharmacists. The committee is <br/>
<a id="pl.30.1"></a><var>30.1</var>governed by section 
         <statute_ref>15.059</statute_ref>, except that committee members do not receive compensation <br/>
<a id="pl.30.2"></a><var>30.2</var>or reimbursement for expenses. The advisory committee expires on June 30, 2007.<br/>
<a id="pl.30.3"></a><var>30.3</var>    (e) The commissioner shall evaluate the effect of medication therapy management <br/>
<a id="pl.30.4"></a><var>30.4</var>on quality of care, patient outcomes, and program costs, and shall include a description <br/>
<a id="pl.30.5"></a><var>30.5</var>of any savings generated in the medical assistance and general assistance medical care <br/>
<a id="pl.30.6"></a><var>30.6</var>programs that can be attributable to this coverage. The evaluation shall be submitted to <br/>
<a id="pl.30.7"></a><var>30.7</var>the legislature by December 15, 2007. The commissioner may contract with a vendor <br/>
<a id="pl.30.8"></a><var>30.8</var>or an academic institution that has expertise in evaluating health care outcomes for the <br/>
<a id="pl.30.9"></a><var>30.9</var>purpose of completing the evaluation.<br/>
<br/>
<a id="bill.1.32.0"></a><a id="pl.30.10"></a><var>30.10</var>    Sec. 32. Minnesota Statutes 2007 Supplement, section 256B.0625, subdivision 49, <br/>
<a id="pl.30.11"></a><var>30.11</var>is amended to read:<br/>
<a id="pl.30.12"></a><var>30.12</var>    Subd. 49. <b>Community health worker.</b> (a) Medical assistance covers the care <br/>
<a id="pl.30.13"></a><var>30.13</var>coordination and patient education services provided by a community health worker if <br/>
<a id="pl.30.14"></a><var>30.14</var>the community health worker has: <br/>
<a id="pl.30.15"></a><var>30.15</var>    (1) received a certificate from the Minnesota State Colleges and Universities System <br/>
<a id="pl.30.16"></a><var>30.16</var>approved community health worker curriculum; or<br/>
<a id="pl.30.17"></a><var>30.17</var>    (2) at least five years of supervised experience with an enrolled physician, registered <br/>
<a id="pl.30.18"></a><var>30.18</var>nurse, or advanced practice registered nurse, or dentist, or at least five years of supervised <br/>
<a id="pl.30.19"></a><var>30.19</var>experience by a certified public health nurse operating under the direct authority of an <br/>
<a id="pl.30.20"></a><var>30.20</var>enrolled unit of government.<br/>
<a id="pl.30.21"></a><var>30.21</var>Community health workers eligible for payment under clause (2) must complete the <br/>
<a id="pl.30.22"></a><var>30.22</var>certification program by January 1, 2010, to continue to be eligible for payment.<br/>
<a id="pl.30.23"></a><var>30.23</var>    (b) Community health workers must work under the supervision of a medical <br/>
<a id="pl.30.24"></a><var>30.24</var>assistance enrolled physician, registered nurse, or advanced practice registered nurse, or <br/>
<a id="pl.30.25"></a><var>30.25</var>dentist, or work under the supervision of a certified public health nurse operating under <br/>
<a id="pl.30.26"></a><var>30.26</var>the direct authority of an enrolled unit of government.<br/>
<a id="pl.30.27"></a><var>30.27</var>    (c) Care coordination and patient education services covered under this subdivision <br/>
<a id="pl.30.28"></a><var>30.28</var>include, but are not limited to, services relating to oral health and dental care.<br/>
<br/>
<a id="bill.1.33.0"></a><a id="pl.30.29"></a><var>30.29</var>    Sec. 33. Minnesota Statutes 2006, section 256B.075, subdivision 2, is amended to read:<br/>
<a id="pl.30.30"></a><var>30.30</var>    Subd. 2. <b>Fee-for-service.</b> (a) The commissioner shall develop and implement <br/>
<a id="pl.30.31"></a><var>30.31</var>a disease management program for medical assistance and general assistance medical <br/>
<a id="pl.30.32"></a><var>30.32</var>care recipients who are not enrolled in the prepaid medical assistance or prepaid general <br/>
<a id="pl.30.33"></a><var>30.33</var>assistance medical care programs and who are receiving services on a fee-for-service basis. <br/>
<a id="pl.30.34"></a><var>30.34</var>The commissioner may contract with an outside organization to provide these services.<br/>
<a id="pl.31.1"></a><var>31.1</var>    (b) The commissioner shall seek any federal approval necessary to implement this <br/>
<a id="pl.31.2"></a><var>31.2</var>section and to obtain federal matching funds.<br/>
<a id="pl.31.3"></a><var>31.3</var>    (c) The commissioner shall develop and implement a pilot intensive care <br/>
<a id="pl.31.4"></a><var>31.4</var>management program for medical assistance children with complex and chronic medical <br/>
<a id="pl.31.5"></a><var>31.5</var>issues who are not able to participate in the metro-based U Special Kids program due <br/>
<a id="pl.31.6"></a><var>31.6</var>to geographic distance.<br/>
<br/>
<a id="bill.1.34.0"></a><a id="pl.31.7"></a><var>31.7</var>    Sec. 34. Minnesota Statutes 2006, section 256B.15, subdivision 4, is amended to read:<br/>
<a id="pl.31.8"></a><var>31.8</var>    Subd. 4. <b>Other survivors.</b> (a) If the decedent who was single or the surviving <br/>
<a id="pl.31.9"></a><var>31.9</var>spouse of a married couple is survived by one of the following persons, a claim exists <br/>
<a id="pl.31.10"></a><var>31.10</var>against the estate payable first from the value of the nonhomestead property included in <br/>
<a id="pl.31.11"></a><var>31.11</var>the estate and the personal representative shall make, execute, and deliver to the county <br/>
<a id="pl.31.12"></a><var>31.12</var>agency a lien against the homestead property in the estate for any unpaid balance of the <br/>
<a id="pl.31.13"></a><var>31.13</var>claim to the claimant as provided under this section:<br/>
<a id="pl.31.14"></a><var>31.14</var>    (a) (1) a sibling who resided in the decedent medical assistance recipient's home at <br/>
<a id="pl.31.15"></a><var>31.15</var>least one year before the decedent's institutionalization and continuously since the date <br/>
<a id="pl.31.16"></a><var>31.16</var>of institutionalization; or<br/>
<a id="pl.31.17"></a><var>31.17</var>    (b) (2) a son or daughter or a grandchild who resided in the decedent medical <br/>
<a id="pl.31.18"></a><var>31.18</var>assistance recipient's home for at least two years immediately before the parent's or <br/>
<a id="pl.31.19"></a><var>31.19</var>grandparent's institutionalization and continuously since the date of institutionalization, <br/>
<a id="pl.31.20"></a><var>31.20</var>and who establishes by a preponderance of the evidence having provided care to the <br/>
<a id="pl.31.21"></a><var>31.21</var>parent or grandparent who received medical assistance, that the care was provided before <br/>
<a id="pl.31.22"></a><var>31.22</var>institutionalization, and that the care permitted the parent or grandparent to reside at <br/>
<a id="pl.31.23"></a><var>31.23</var>home rather than in an institution.<br/>
<a id="pl.31.24"></a><var>31.24</var>    (b) For purposes of this subdivision, "institutionalization" means receiving care:<br/>
<a id="pl.31.25"></a><var>31.25</var>    (1) in a nursing facility or swing bed, or intermediate care facility for persons with <br/>
<a id="pl.31.26"></a><var>31.26</var>developmental disabilities; or<br/>
<a id="pl.31.27"></a><var>31.27</var>    (2) through home and community-based services under section 256B.0915, <br/>
<a id="pl.31.28"></a><var>31.28</var>256B.092, or 256B.49.<br/>
<br/>
<a id="bill.1.35.0"></a><a id="pl.31.29"></a><var>31.29</var>    Sec. 35. Minnesota Statutes 2006, section 256B.69, subdivision 3a, is amended to read:<br/>
<a id="pl.31.30"></a><var>31.30</var>    Subd. 3a. <b>County authority.</b> (a) The commissioner, when implementing the general <br/>
<a id="pl.31.31"></a><var>31.31</var>assistance medical care, or medical assistance prepayment program within a county, <br/>
<a id="pl.31.32"></a><var>31.32</var>must include the county board in the process of development, approval, and issuance of <br/>
<a id="pl.31.33"></a><var>31.33</var>the request for proposals to provide services to eligible individuals within the proposed <br/>
<a id="pl.31.34"></a><var>31.34</var>county. County boards must be given reasonable opportunity to make recommendations <br/>
<a id="pl.32.1"></a><var>32.1</var>regarding the development, issuance, review of responses, and changes needed in the <br/>
<a id="pl.32.2"></a><var>32.2</var>request for proposals. The commissioner must provide county boards the opportunity to <br/>
<a id="pl.32.3"></a><var>32.3</var>review each proposal based on the identification of community needs under chapters 145A <br/>
<a id="pl.32.4"></a><var>32.4</var>and 256E and county advocacy activities. If a county board finds that a proposal does not <br/>
<a id="pl.32.5"></a><var>32.5</var>address certain community needs, the county board and commissioner shall continue <br/>
<a id="pl.32.6"></a><var>32.6</var>efforts for improving the proposal and network prior to the approval of the contract. The <br/>
<a id="pl.32.7"></a><var>32.7</var>county board shall make recommendations regarding the approval of local networks <br/>
<a id="pl.32.8"></a><var>32.8</var>and their operations to ensure adequate availability and access to covered services. The <br/>
<a id="pl.32.9"></a><var>32.9</var>provider or health plan must respond directly to county advocates and the state prepaid <br/>
<a id="pl.32.10"></a><var>32.10</var>medical assistance ombudsperson regarding service delivery and must be accountable to <br/>
<a id="pl.32.11"></a><var>32.11</var>the state regarding contracts with medical assistance and general assistance medical care <br/>
<a id="pl.32.12"></a><var>32.12</var>funds. The county board may recommend a maximum number of participating health <br/>
<a id="pl.32.13"></a><var>32.13</var>plans after considering the size of the enrolling population; ensuring adequate access and <br/>
<a id="pl.32.14"></a><var>32.14</var>capacity; considering the client and county administrative complexity; and considering <br/>
<a id="pl.32.15"></a><var>32.15</var>the need to promote the viability of locally developed health plans. The county board <br/>
<a id="pl.32.16"></a><var>32.16</var>or a single entity representing a group of county boards and the commissioner shall <br/>
<a id="pl.32.17"></a><var>32.17</var>mutually select health plans for participation at the time of initial implementation of the <br/>
<a id="pl.32.18"></a><var>32.18</var>prepaid medical assistance program in that county or group of counties and at the time <br/>
<a id="pl.32.19"></a><var>32.19</var>of contract renewal. The commissioner shall also seek input for contract requirements <br/>
<a id="pl.32.20"></a><var>32.20</var>from the county or single entity representing a group of county boards at each contract <br/>
<a id="pl.32.21"></a><var>32.21</var>renewal and incorporate those recommendations into the contract negotiation process. <br/>
<a id="pl.32.22"></a><var>32.22</var>The commissioner, in conjunction with the county board, shall actively seek to develop <br/>
<a id="pl.32.23"></a><var>32.23</var>a mutually agreeable timetable prior to the development of the request for proposal, but <br/>
<a id="pl.32.24"></a><var>32.24</var>counties must agree to initial enrollment beginning on or before January 1, 1999, in <br/>
<a id="pl.32.25"></a><var>32.25</var>either the prepaid medical assistance and general assistance medical care programs or <br/>
<a id="pl.32.26"></a><var>32.26</var>county-based purchasing under section 
<statute_ref>256B.692</statute_ref>. At least 90 days before enrollment in <br/>
<a id="pl.32.27"></a><var>32.27</var>the medical assistance and general assistance medical care prepaid programs begins in <br/>
<a id="pl.32.28"></a><var>32.28</var>a county in which the prepaid programs have not been established, the commissioner <br/>
<a id="pl.32.29"></a><var>32.29</var>shall provide a report to the chairs of senate and house committees having jurisdiction <br/>
<a id="pl.32.30"></a><var>32.30</var>over state health care programs which verifies that the commissioner complied with the <br/>
<a id="pl.32.31"></a><var>32.31</var>requirements for county involvement that are specified in this subdivision. <br/>
<a id="pl.32.32"></a><var>32.32</var>    (b) At the option of the county board, the board may develop contract requirements <br/>
<a id="pl.32.33"></a><var>32.33</var>related to the achievement of local public health goals to meet the health needs of medical <br/>
<a id="pl.32.34"></a><var>32.34</var>assistance and general assistance medical care enrollees. These requirements must be <br/>
<a id="pl.32.35"></a><var>32.35</var>reasonably related to the performance of health plan functions and within the scope of the <br/>
<a id="pl.32.36"></a><var>32.36</var>medical assistance and general assistance medical care benefit sets. If the county board <br/>
<a id="pl.33.1"></a><var>33.1</var>and the commissioner mutually agree to such requirements, the department shall include <br/>
<a id="pl.33.2"></a><var>33.2</var>such requirements in all health plan contracts governing the prepaid medical assistance <br/>
<a id="pl.33.3"></a><var>33.3</var>and general assistance medical care programs in that county at initial implementation of <br/>
<a id="pl.33.4"></a><var>33.4</var>the program in that county and at the time of contract renewal. The county board may <br/>
<a id="pl.33.5"></a><var>33.5</var>participate in the enforcement of the contract provisions related to local public health goals.<br/>
<a id="pl.33.6"></a><var>33.6</var>    (c) For counties in which prepaid medical assistance and general assistance medical <br/>
<a id="pl.33.7"></a><var>33.7</var>care programs have not been established, the commissioner shall not implement those <br/>
<a id="pl.33.8"></a><var>33.8</var>programs if a county board submits acceptable and timely preliminary and final proposals <br/>
<a id="pl.33.9"></a><var>33.9</var>under section 
         <statute_ref>256B.692</statute_ref>, until county-based purchasing is no longer operational in that <br/>
<a id="pl.33.10"></a><var>33.10</var>county. For counties in which prepaid medical assistance and general assistance medical <br/>
<a id="pl.33.11"></a><var>33.11</var>care programs are in existence on or after September 1, 1997, the commissioner must <br/>
<a id="pl.33.12"></a><var>33.12</var>terminate contracts with health plans according to section 
         <statute_ref>256B.692, subdivision 5</statute_ref>, if <br/>
<a id="pl.33.13"></a><var>33.13</var>the county board submits and the commissioner accepts preliminary and final proposals <br/>
<a id="pl.33.14"></a><var>33.14</var>according to that subdivision. The commissioner is not required to terminate contracts that <br/>
<a id="pl.33.15"></a><var>33.15</var>begin on or after September 1, 1997, according to section 
         <statute_ref>256B.692</statute_ref> until two years have <br/>
<a id="pl.33.16"></a><var>33.16</var>elapsed from the date of initial enrollment. <br/>
<a id="pl.33.17"></a><var>33.17</var>    (d) In the event that a county board or a single entity representing a group of county <br/>
<a id="pl.33.18"></a><var>33.18</var>boards and the commissioner cannot reach agreement regarding: (i) the selection of <br/>
<a id="pl.33.19"></a><var>33.19</var>participating health plans in that county; (ii) contract requirements; or (iii) implementation <br/>
<a id="pl.33.20"></a><var>33.20</var>and enforcement of county requirements including provisions regarding local public <br/>
<a id="pl.33.21"></a><var>33.21</var>health goals, the commissioner shall resolve all disputes after taking into account the <br/>
<a id="pl.33.22"></a><var>33.22</var>recommendations of a three-person mediation panel. The panel shall be composed of one <br/>
<a id="pl.33.23"></a><var>33.23</var>designee of the president of the association of Minnesota counties, one designee of the <br/>
<a id="pl.33.24"></a><var>33.24</var>commissioner of human services, and one designee of the commissioner of health person <br/>
<a id="pl.33.25"></a><var>33.25</var>selected jointly by the designee of the commissioner of human services and the designee <br/>
<a id="pl.33.26"></a><var>33.26</var>of the Association of Minnesota Counties. Within a reasonable period of time before <br/>
<a id="pl.33.27"></a><var>33.27</var>the hearing, the panelists must be provided all documents and information relevant to <br/>
<a id="pl.33.28"></a><var>33.28</var>the mediation. The parties to the mediation must be given 30 days' notice of a hearing <br/>
<a id="pl.33.29"></a><var>33.29</var>before the mediation panel.<br/>
<a id="pl.33.30"></a><var>33.30</var>    (e) If a county which elects to implement county-based purchasing ceases to <br/>
<a id="pl.33.31"></a><var>33.31</var>implement county-based purchasing, it is prohibited from assuming the responsibility of <br/>
<a id="pl.33.32"></a><var>33.32</var>county-based purchasing for a period of five years from the date it discontinues purchasing.<br/>
<a id="pl.33.33"></a><var>33.33</var>    (f) Notwithstanding the requirement in this subdivision that a county must agree to <br/>
<a id="pl.33.34"></a><var>33.34</var>initial enrollment on or before January 1, 1999, the commissioner shall grant a delay in <br/>
<a id="pl.33.35"></a><var>33.35</var>the implementation of the county-based purchasing authorized in section 
<statute_ref>256B.692</statute_ref> until <br/>
<a id="pl.33.36"></a><var>33.36</var>federal waiver authority and approval has been granted, if the county or group of counties <br/>
<a id="pl.34.1"></a><var>34.1</var>has submitted a preliminary proposal for county-based purchasing by September 1, 1997, <br/>
<a id="pl.34.2"></a><var>34.2</var>has not already implemented the prepaid medical assistance program before January 1, <br/>
<a id="pl.34.3"></a><var>34.3</var>1998, and has submitted a written request for the delay to the commissioner by July <br/>
<a id="pl.34.4"></a><var>34.4</var>1, 1998. In order for the delay to be continued, the county or group of counties must <br/>
<a id="pl.34.5"></a><var>34.5</var>also submit to the commissioner the following information by December 1, 1998. The <br/>
<a id="pl.34.6"></a><var>34.6</var>information must: <br/>
<a id="pl.34.7"></a><var>34.7</var>    (1) identify the proposed date of implementation, as determined under section <br/>
<a id="pl.34.8"></a><var>34.8</var><statute_ref>256B.692, subdivision 5</statute_ref>; <br/>
<a id="pl.34.9"></a><var>34.9</var>    (2) include copies of the county board resolutions which demonstrate the continued <br/>
<a id="pl.34.10"></a><var>34.10</var>commitment to the implementation of county-based purchasing by the proposed date. <br/>
<a id="pl.34.11"></a><var>34.11</var>County board authorization may remain contingent on the submission of a final proposal <br/>
<a id="pl.34.12"></a><var>34.12</var>which meets the requirements of section 
<statute_ref>256B.692, subdivision 5</statute_ref>, paragraph (b); <br/>
<a id="pl.34.13"></a><var>34.13</var>    (3) demonstrate actions taken for the establishment of a governance structure <br/>
<a id="pl.34.14"></a><var>34.14</var>between the participating counties and describe how the fiduciary responsibilities of <br/>
<a id="pl.34.15"></a><var>34.15</var>county-based purchasing will be allocated between the counties, if more than one county <br/>
<a id="pl.34.16"></a><var>34.16</var>is involved in the proposal;<br/>
<a id="pl.34.17"></a><var>34.17</var>    (4) describe how the risk of a deficit will be managed in the event expenditures are <br/>
<a id="pl.34.18"></a><var>34.18</var>greater than total capitation payments. This description must identify how any of the <br/>
<a id="pl.34.19"></a><var>34.19</var>following strategies will be used:<br/>
<a id="pl.34.20"></a><var>34.20</var>    (i) risk contracts with licensed health plans;<br/>
<a id="pl.34.21"></a><var>34.21</var>    (ii) risk arrangements with providers who are not licensed health plans;<br/>
<a id="pl.34.22"></a><var>34.22</var>    (iii) risk arrangements with other licensed insurance entities; and<br/>
<a id="pl.34.23"></a><var>34.23</var>    (iv) funding from other county resources;<br/>
<a id="pl.34.24"></a><var>34.24</var>    (5) include, if county-based purchasing will not contract with licensed health plans <br/>
<a id="pl.34.25"></a><var>34.25</var>or provider networks, letters of interest from local providers in at least the categories of <br/>
<a id="pl.34.26"></a><var>34.26</var>hospital, physician, mental health, and pharmacy which express interest in contracting <br/>
<a id="pl.34.27"></a><var>34.27</var>for services. These letters must recognize any risk transfer identified in clause (4), item <br/>
<a id="pl.34.28"></a><var>34.28</var>(ii); and<br/>
<a id="pl.34.29"></a><var>34.29</var>    (6) describe the options being considered to obtain the administrative services <br/>
<a id="pl.34.30"></a><var>34.30</var>required in section 
<statute_ref>256B.692, subdivision 3</statute_ref>, clauses (3) and (5). <br/>
<a id="pl.34.31"></a><var>34.31</var>    (g) For counties which receive a delay under this subdivision, the final proposals <br/>
<a id="pl.34.32"></a><var>34.32</var>required under section 
<statute_ref>256B.692, subdivision 5</statute_ref>, paragraph (b), must be submitted at <br/>
<a id="pl.34.33"></a><var>34.33</var>least six months prior to the requested implementation date. Authority to implement <br/>
<a id="pl.34.34"></a><var>34.34</var>county-based purchasing remains contingent on approval of the final proposal as required <br/>
<a id="pl.34.35"></a><var>34.35</var>under section 
<statute_ref>256B.692</statute_ref>. <br/>
<a id="pl.35.1"></a><var>35.1</var>    (h) If the commissioner is unable to provide county-specific, individual-level <br/>
<a id="pl.35.2"></a><var>35.2</var>fee-for-service claims to counties by June 4, 1998, the commissioner shall grant a delay <br/>
<a id="pl.35.3"></a><var>35.3</var>under paragraph (f) of up to 12 months in the implementation of county-based purchasing, <br/>
<a id="pl.35.4"></a><var>35.4</var>and shall require implementation not later than January 1, 2000. In order to receive an <br/>
<a id="pl.35.5"></a><var>35.5</var>extension of the proposed date of implementation under this paragraph, a county or group <br/>
<a id="pl.35.6"></a><var>35.6</var>of counties must submit a written request for the extension to the commissioner by August <br/>
<a id="pl.35.7"></a><var>35.7</var>1, 1998, must submit the information required under paragraph (f) by December 1, 1998, <br/>
<a id="pl.35.8"></a><var>35.8</var>and must submit a final proposal as provided under paragraph (g).<br/>
<a id="pl.35.9"></a><var>35.9</var>    (i) Notwithstanding other requirements of this subdivision, the commissioner <br/>
<a id="pl.35.10"></a><var>35.10</var>shall not require the implementation of the county-based purchasing authorized in <br/>
<a id="pl.35.11"></a><var>35.11</var>section 
<statute_ref>256B.692</statute_ref> until six months after federal waiver approval has been obtained for <br/>
<a id="pl.35.12"></a><var>35.12</var>county-based purchasing, if the county or counties have submitted the final plan as <br/>
<a id="pl.35.13"></a><var>35.13</var>required in section 
<statute_ref>256B.692, subdivision 5</statute_ref>. The commissioner shall allow the county or <br/>
<a id="pl.35.14"></a><var>35.14</var>counties which submitted information under section 
<statute_ref>256B.692, subdivision 5</statute_ref>, to submit <br/>
<a id="pl.35.15"></a><var>35.15</var>supplemental or additional information which was not possible to submit by April 1, 1999. <br/>
<a id="pl.35.16"></a><var>35.16</var>A county or counties shall continue to submit the required information and substantive <br/>
<a id="pl.35.17"></a><var>35.17</var>detail necessary to obtain a prompt response and waiver approval. If amendments to <br/>
<a id="pl.35.18"></a><var>35.18</var>the final plan are necessary due to the terms and conditions of the waiver approval, the <br/>
<a id="pl.35.19"></a><var>35.19</var>commissioner shall allow the county or group of counties 60 days to make the necessary <br/>
<a id="pl.35.20"></a><var>35.20</var>amendments to the final plan and shall not require implementation of the county-based <br/>
<a id="pl.35.21"></a><var>35.21</var>purchasing until six months after the revised final plan has been submitted. <br/>
<a id="pl.35.22"></a><var>35.22</var>    (f) The commissioner shall not require that contractual disputes between <br/>
<a id="pl.35.23"></a><var>35.23</var>county-based purchasing entities and the commissioner be mediated by a panel that <br/>
<a id="pl.35.24"></a><var>35.24</var>includes a representative of the Minnesota Council of Health Plans.<br/>
<a id="pl.35.25"></a><var>35.25</var>    (g) At the request of a county-purchasing entity, the commissioner shall adopt a <br/>
<a id="pl.35.26"></a><var>35.26</var>contract reprocurement or renewal schedule under which all counties included in the <br/>
<a id="pl.35.27"></a><var>35.27</var>entity's service area are reprocured or renewed at the same time.<br/>
<a id="pl.35.28"></a><var>35.28</var>    (h) The commissioner shall provide a written report under section 3.195 to the chairs <br/>
<a id="pl.35.29"></a><var>35.29</var>of the legislative committees having jurisdiction over human services in the senate and the <br/>
<a id="pl.35.30"></a><var>35.30</var>house of representatives describing in detail the activities undertaken by the commissioner <br/>
<a id="pl.35.31"></a><var>35.31</var>to ensure full compliance with this section. The report must also provide an explanation <br/>
<a id="pl.35.32"></a><var>35.32</var>for any decisions of the commissioner not to accept the recommendations of a county or <br/>
<a id="pl.35.33"></a><var>35.33</var>group of counties required to be consulted under this section. The report must be provided <br/>
<a id="pl.35.34"></a><var>35.34</var>at least 30 days prior to the effective date of a new or renewed prepaid or managed care <br/>
<a id="pl.35.35"></a><var>35.35</var>contract in a county.<br/>
<br/>
<a id="bill.1.36.0"></a><a id="pl.36.1"></a><var>36.1</var>    Sec. 36. Minnesota Statutes 2006, section 256B.69, subdivision 6, is amended to read:<br/>
<a id="pl.36.2"></a><var>36.2</var>    Subd. 6. <b>Service delivery.</b> (a) Each demonstration provider shall be responsible for <br/>
<a id="pl.36.3"></a><var>36.3</var>the health care coordination for eligible individuals. Demonstration providers:<br/>
<a id="pl.36.4"></a><var>36.4</var>    (1) shall authorize and arrange for the provision of all needed health services <br/>
<a id="pl.36.5"></a><var>36.5</var>including but not limited to the full range of services listed in sections 
         <statute_ref>256B.02, <br/>
<a id="pl.36.6"></a><var>36.6</var>subdivision 8
         </statute_ref>, and 
         <statute_ref>256B.0625</statute_ref> in order to ensure appropriate health care is delivered <br/>
<a id="pl.36.7"></a><var>36.7</var>to enrollees; notwithstanding section 256B.0621, demonstration providers that provide <br/>
<a id="pl.36.8"></a><var>36.8</var>nursing home and community-based services under this section shall provide relocation <br/>
<a id="pl.36.9"></a><var>36.9</var>service coordination to enrolled persons age 65 and over; <br/>
<a id="pl.36.10"></a><var>36.10</var>    (2) shall accept the prospective, per capita payment from the commissioner in return <br/>
<a id="pl.36.11"></a><var>36.11</var>for the provision of comprehensive and coordinated health care services for eligible <br/>
<a id="pl.36.12"></a><var>36.12</var>individuals enrolled in the program;<br/>
<a id="pl.36.13"></a><var>36.13</var>    (3) may contract with other health care and social service practitioners to provide <br/>
<a id="pl.36.14"></a><var>36.14</var>services to enrollees; and<br/>
<a id="pl.36.15"></a><var>36.15</var>    (4) shall institute recipient grievance procedures according to the method established <br/>
<a id="pl.36.16"></a><var>36.16</var>by the project, utilizing applicable requirements of chapter 62D. Disputes not resolved <br/>
<a id="pl.36.17"></a><var>36.17</var>through this process shall be appealable to the commissioner as provided in subdivision 11.<br/>
<a id="pl.36.18"></a><var>36.18</var>    (b) Demonstration providers must comply with the standards for claims settlement <br/>
<a id="pl.36.19"></a><var>36.19</var>under section 
         <statute_ref>72A.201, subdivisions 4, 5, 7, and 8</statute_ref>, when contracting with other health <br/>
<a id="pl.36.20"></a><var>36.20</var>care and social service practitioners to provide services to enrollees. A demonstration <br/>
<a id="pl.36.21"></a><var>36.21</var>provider must pay a clean claim, as defined in Code of Federal Regulations, title 42, <br/>
<a id="pl.36.22"></a><var>36.22</var>section 447.45(b), within 30 business days of the date of acceptance of the claim. <br/>
<br/>
<a id="bill.1.37.0"></a><a id="pl.36.23"></a><var>36.23</var>    Sec. 37. Minnesota Statutes 2006, section 256B.69, subdivision 27, is amended to read:<br/>
<a id="pl.36.24"></a><var>36.24</var>    Subd. 27. <b>Information for persons with limited English-language proficiency.</b><br/>
<a id="pl.36.25"></a><var>36.25</var>    Managed care contracts entered into under this section and sections 
         <statute_ref>256D.03, subdivision <br/>
<a id="pl.36.26"></a><var>36.26</var>4
         </statute_ref>, paragraph (c), and 
         <statute_ref>256L.12</statute_ref> must require demonstration providers to inform enrollees <br/>
<a id="pl.36.27"></a><var>36.27</var>that upon request the enrollee can obtain a certificate of coverage in the following <br/>
<a id="pl.36.28"></a><var>36.28</var>languages: Spanish, Hmong, Laotian, Russian, Somali, Vietnamese, or Cambodian. <br/>
<a id="pl.36.29"></a><var>36.29</var>Upon request, the demonstration provider must provide the enrollee with a certificate of <br/>
<a id="pl.36.30"></a><var>36.30</var>coverage in the specified language of preference provide language assistance to enrollees <br/>
<a id="pl.36.31"></a><var>36.31</var>that ensures meaningful access to its programs and services according to Title VI of the <br/>
<a id="pl.36.32"></a><var>36.32</var>Civil Rights Act and federal regulations adopted under that law or any guidance from the <br/>
<a id="pl.36.33"></a><var>36.33</var>United States Department of Health and Human Services. <br/>
<br/>
<a id="bill.1.38.0"></a><a id="pl.36.34"></a><var>36.34</var>    Sec. 38. Minnesota Statutes 2006, section 256B.69, subdivision 28, is amended to read:<br/>
<a id="pl.37.1"></a><var>37.1</var>    Subd. 28. <b>Medicare special needs plans; medical assistance basic health care.</b><br/>
<a id="pl.37.2"></a><var>37.2</var>    (a) The commissioner may contract with qualified Medicare-approved special needs <br/>
<a id="pl.37.3"></a><var>37.3</var>plans to provide medical assistance basic health care services to persons with disabilities, <br/>
<a id="pl.37.4"></a><var>37.4</var>including those with developmental disabilities. Basic health care services include:<br/>
<a id="pl.37.5"></a><var>37.5</var>    (1) those services covered by the medical assistance state plan except for ICF/MR <br/>
<a id="pl.37.6"></a><var>37.6</var>services, home and community-based waiver services, case management for persons with <br/>
<a id="pl.37.7"></a><var>37.7</var>developmental disabilities under section 
         <statute_ref>256B.0625</statute_ref>, subdivision 20a, and personal care <br/>
<a id="pl.37.8"></a><var>37.8</var>and certain home care services defined by the commissioner in consultation with the <br/>
<a id="pl.37.9"></a><var>37.9</var>stakeholder group established under paragraph (d); and<br/>
<a id="pl.37.10"></a><var>37.10</var>    (2) basic health care services may also include risk for up to 100 days of nursing <br/>
<a id="pl.37.11"></a><var>37.11</var>facility services for persons who reside in a noninstitutional setting and home health <br/>
<a id="pl.37.12"></a><var>37.12</var>services related to rehabilitation as defined by the commissioner after consultation with <br/>
<a id="pl.37.13"></a><var>37.13</var>the stakeholder group.<br/>
<a id="pl.37.14"></a><var>37.14</var>    The commissioner may exclude other medical assistance services from the basic <br/>
<a id="pl.37.15"></a><var>37.15</var>health care benefit set. Enrollees in these plans can access any excluded services on the <br/>
<a id="pl.37.16"></a><var>37.16</var>same basis as other medical assistance recipients who have not enrolled.<br/>
<a id="pl.37.17"></a><var>37.17</var>    Unless a person is otherwise required to enroll in managed care, enrollment in these <br/>
<a id="pl.37.18"></a><var>37.18</var>plans for Medicaid services must be voluntary. For purposes of this subdivision, automatic <br/>
<a id="pl.37.19"></a><var>37.19</var>enrollment with an option to opt out is not voluntary enrollment. <br/>
<a id="pl.37.20"></a><var>37.20</var>    (b) Beginning January 1, 2007, the commissioner may contract with qualified <br/>
<a id="pl.37.21"></a><var>37.21</var>Medicare special needs plans to provide basic health care services under medical <br/>
<a id="pl.37.22"></a><var>37.22</var>assistance to persons who are dually eligible for both Medicare and Medicaid and those <br/>
<a id="pl.37.23"></a><var>37.23</var>Social Security beneficiaries eligible for Medicaid but in the waiting period for Medicare. <br/>
<a id="pl.37.24"></a><var>37.24</var>The commissioner shall consult with the stakeholder group under paragraph (d) in <br/>
<a id="pl.37.25"></a><var>37.25</var>developing program specifications for these services. The commissioner shall report to <br/>
<a id="pl.37.26"></a><var>37.26</var>the chairs of the house and senate committees with jurisdiction over health and human <br/>
<a id="pl.37.27"></a><var>37.27</var>services policy and finance by February 1, 2007, on implementation of these programs and <br/>
<a id="pl.37.28"></a><var>37.28</var>the need for increased funding for the ombudsman for managed care and other consumer <br/>
<a id="pl.37.29"></a><var>37.29</var>assistance and protections needed due to enrollment in managed care of persons with <br/>
<a id="pl.37.30"></a><var>37.30</var>disabilities. Payment for Medicaid services provided under this subdivision for the months <br/>
<a id="pl.37.31"></a><var>37.31</var>of May and June will be made no earlier than July 1 of the same calendar year.<br/>
<a id="pl.37.32"></a><var>37.32</var>    (c) Beginning January 1, 2008, the commissioner may expand contracting under this <br/>
<a id="pl.37.33"></a><var>37.33</var>subdivision to all persons with disabilities not otherwise required to enroll in managed <br/>
<a id="pl.37.34"></a><var>37.34</var>care.<br/>
<a id="pl.37.35"></a><var>37.35</var>    (d) The commissioner shall establish a state-level stakeholder group to provide <br/>
<a id="pl.37.36"></a><var>37.36</var>advice on managed care programs for persons with disabilities, including both MnDHO <br/>
<a id="pl.38.1"></a><var>38.1</var>and contracts with special needs plans that provide basic health care services as described <br/>
<a id="pl.38.2"></a><var>38.2</var>in paragraphs (a) and (b). The stakeholder group shall provide advice on program <br/>
<a id="pl.38.3"></a><var>38.3</var>expansions under this subdivision and subdivision 23, including:<br/>
<a id="pl.38.4"></a><var>38.4</var>    (1) implementation efforts; <br/>
<a id="pl.38.5"></a><var>38.5</var>    (2) consumer protections; and <br/>
<a id="pl.38.6"></a><var>38.6</var>    (3) program specifications such as quality assurance measures, data collection and <br/>
<a id="pl.38.7"></a><var>38.7</var>reporting, and evaluation of costs, quality, and results.<br/>
<a id="pl.38.8"></a><var>38.8</var>    (e) Each plan under contract to provide medical assistance basic health care services <br/>
<a id="pl.38.9"></a><var>38.9</var>shall establish a local or regional stakeholder group, including representatives of the <br/>
<a id="pl.38.10"></a><var>38.10</var>counties covered by the plan, members, consumer advocates, and providers, for advice on <br/>
<a id="pl.38.11"></a><var>38.11</var>issues that arise in the local or regional area.<br/>
<a id="pl.38.12"></a><var>38.12</var>    (f) The commissioner is prohibited from providing the names of potential enrollees <br/>
<a id="pl.38.13"></a><var>38.13</var>to health plans for marketing purposes. The commissioner may mail marketing materials <br/>
<a id="pl.38.14"></a><var>38.14</var>to potential enrollees on behalf of health plans, in which case the health plans shall cover <br/>
<a id="pl.38.15"></a><var>38.15</var>any costs incurred by the commissioner for mailing marketing materials. <br/>
<br/>
<a id="bill.1.39.0"></a><a id="pl.38.16"></a><var>38.16</var>    Sec. 39. Minnesota Statutes 2006, section 256B.692, subdivision 7, is amended to read:<br/>
<a id="pl.38.17"></a><var>38.17</var>    Subd. 7. <b>Dispute resolution.</b> In the event the commissioner rejects a proposal <br/>
<a id="pl.38.18"></a><var>38.18</var>under subdivision 6, the county board may request the recommendation of a three-person <br/>
<a id="pl.38.19"></a><var>38.19</var>mediation panel. The commissioner shall resolve all disputes after taking into account the <br/>
<a id="pl.38.20"></a><var>38.20</var>recommendations of the mediation panel. The panel shall be composed of one designee of <br/>
<a id="pl.38.21"></a><var>38.21</var>the president of the Association of Minnesota Counties, one designee of the commissioner <br/>
<a id="pl.38.22"></a><var>38.22</var>of human services, and one designee of the commissioner of health person selected jointly <br/>
<a id="pl.38.23"></a><var>38.23</var>by the designee of the commissioner of human services and the designee of the Association <br/>
<a id="pl.38.24"></a><var>38.24</var>of Minnesota Counties. Within a reasonable period of time before the hearing, the panelists <br/>
<a id="pl.38.25"></a><var>38.25</var>must be provided all documents and information relevant to the mediation. The parties to <br/>
<a id="pl.38.26"></a><var>38.26</var>the mediation must be given 30 days' notice of a hearing before the mediation panel.<br/>
<br/>
<a id="bill.1.40.0"></a><a id="pl.38.27"></a><var>38.27</var>    Sec. 40. Minnesota Statutes 2007 Supplement, section 256D.03, subdivision 3, is <br/>
<a id="pl.38.28"></a><var>38.28</var>amended to read:<br/>
<a id="pl.38.29"></a><var>38.29</var>    Subd. 3. <b>General assistance medical care; eligibility.</b> (a) General assistance <br/>
<a id="pl.38.30"></a><var>38.30</var>medical care may be paid for any person who is not eligible for medical assistance under <br/>
<a id="pl.38.31"></a><var>38.31</var>chapter 256B, including eligibility for medical assistance based on a spenddown of excess <br/>
<a id="pl.38.32"></a><var>38.32</var>income according to section 
         <statute_ref>256B.056, subdivision 5</statute_ref>, or MinnesotaCare as defined in <br/>
<a id="pl.38.33"></a><var>38.33</var>paragraph (b), except as provided in paragraph (c), and:<br/>
<a id="pl.39.1"></a><var>39.1</var>    (1) who is receiving assistance under section 
         <statute_ref>256D.05</statute_ref>, except for families with <br/>
<a id="pl.39.2"></a><var>39.2</var>children who are eligible under Minnesota family investment program (MFIP), or who is <br/>
<a id="pl.39.3"></a><var>39.3</var>having a payment made on the person's behalf under sections 
         <statute_ref>256I.01</statute_ref> to 
         <statute_ref>256I.06</statute_ref>; or<br/>
<a id="pl.39.4"></a><var>39.4</var>    (2) who is a resident of Minnesota; and<br/>
<a id="pl.39.5"></a><var>39.5</var>    (i) who has gross countable income not in excess of 75 percent of the federal poverty <br/>
<a id="pl.39.6"></a><var>39.6</var>guidelines for the family size, using a six-month budget period and whose equity in assets <br/>
<a id="pl.39.7"></a><var>39.7</var>is not in excess of $1,000 per assistance unit. General assistance medical care is not <br/>
<a id="pl.39.8"></a><var>39.8</var>available for applicants or enrollees who are otherwise eligible for medical assistance but <br/>
<a id="pl.39.9"></a><var>39.9</var>fail to verify their assets. Enrollees who become eligible for medical assistance shall be <br/>
<a id="pl.39.10"></a><var>39.10</var>terminated and transferred to medical assistance. Exempt assets, the reduction of excess <br/>
<a id="pl.39.11"></a><var>39.11</var>assets, and the waiver of excess assets must conform to the medical assistance program in <br/>
<a id="pl.39.12"></a><var>39.12</var>section 
         <statute_ref>256B.056, subdivision 3</statute_ref>, with the following exception: the maximum amount of <br/>
<a id="pl.39.13"></a><var>39.13</var>undistributed funds in a trust that could be distributed to or on behalf of the beneficiary by <br/>
<a id="pl.39.14"></a><var>39.14</var>the trustee, assuming the full exercise of the trustee's discretion under the terms of the <br/>
<a id="pl.39.15"></a><var>39.15</var>trust, must be applied toward the asset maximum;<br/>
<a id="pl.39.16"></a><var>39.16</var>    (ii) who has gross countable income above 75 percent of the federal poverty <br/>
<a id="pl.39.17"></a><var>39.17</var>guidelines but not in excess of 175 percent of the federal poverty guidelines for the <br/>
<a id="pl.39.18"></a><var>39.18</var>family size, using a six-month budget period, whose equity in assets is not in excess <br/>
<a id="pl.39.19"></a><var>39.19</var>of the limits in section 
         <statute_ref>256B.056, subdivision 3c</statute_ref>, and who applies during an inpatient <br/>
<a id="pl.39.20"></a><var>39.20</var>hospitalization; or<br/>
<a id="pl.39.21"></a><var>39.21</var>    (iii) the commissioner shall adjust the income standards under this section each July <br/>
<a id="pl.39.22"></a><var>39.22</var>1 by the annual update of the federal poverty guidelines following publication by the <br/>
<a id="pl.39.23"></a><var>39.23</var>United States Department of Health and Human Services.<br/>
<a id="pl.39.24"></a><var>39.24</var>    (b) Effective for applications and renewals processed on or after September 1, 2006, <br/>
<a id="pl.39.25"></a><var>39.25</var>general assistance medical care may not be paid for applicants or recipients who are adults <br/>
<a id="pl.39.26"></a><var>39.26</var>with dependent children under 21 whose gross family income is equal to or less than 275 <br/>
<a id="pl.39.27"></a><var>39.27</var>percent of the federal poverty guidelines who are not described in paragraph (e).<br/>
<a id="pl.39.28"></a><var>39.28</var>    (c) Effective for applications and renewals processed on or after September 1, 2006, <br/>
<a id="pl.39.29"></a><var>39.29</var>general assistance medical care may be paid for applicants and recipients who meet all <br/>
<a id="pl.39.30"></a><var>39.30</var>eligibility requirements of paragraph (a), clause (2), item (i), for a temporary period <br/>
<a id="pl.39.31"></a><var>39.31</var>beginning the date of application. Immediately following approval of general assistance <br/>
<a id="pl.39.32"></a><var>39.32</var>medical care, enrollees shall be enrolled in MinnesotaCare under section 
         <statute_ref>256L.04, <br/>
<a id="pl.39.33"></a><var>39.33</var>subdivision 7
         </statute_ref>, with covered services as provided in section 
         <statute_ref>256L.03</statute_ref> for the rest of the <br/>
<a id="pl.39.34"></a><var>39.34</var>six-month general assistance medical care eligibility period, until their six-month renewal. <br/>
<a id="pl.40.1"></a><var>40.1</var>    (d) To be eligible for general assistance medical care following enrollment in <br/>
<a id="pl.40.2"></a><var>40.2</var>MinnesotaCare as required by paragraph (c), an individual must complete a new <br/>
<a id="pl.40.3"></a><var>40.3</var>application.<br/>
<a id="pl.40.4"></a><var>40.4</var>    (e) Applicants and recipients eligible under paragraph (a), clause (1); who, are <br/>
<a id="pl.40.5"></a><var>40.5</var>exempt from the MinnesotaCare enrollment requirements in this subdivision if they:<br/>
<a id="pl.40.6"></a><var>40.6</var>    (1) have applied for and are awaiting a determination of blindness or disability by <br/>
<a id="pl.40.7"></a><var>40.7</var>the state medical review team or a determination of eligibility for Supplemental Security <br/>
<a id="pl.40.8"></a><var>40.8</var>Income or Social Security Disability Insurance by the Social Security Administration; who<br/>
<a id="pl.40.9"></a><var>40.9</var>    (2) fail to meet the requirements of section 
         <statute_ref>256L.09, subdivision 2</statute_ref>; who<br/>
<a id="pl.40.10"></a><var>40.10</var>    (3) are homeless as defined by United States Code, title 42, section 11301, et seq.; <br/>
<a id="pl.40.11"></a><var>40.11</var>who<br/>
<a id="pl.40.12"></a><var>40.12</var>    (4)  are classified as end-stage renal disease beneficiaries in the Medicare program; <br/>
<a id="pl.40.13"></a><var>40.13</var>who<br/>
<a id="pl.40.14"></a><var>40.14</var>    (5) are enrolled in private health care coverage as defined in section 
         <statute_ref>256B.02</statute_ref>, <br/>
<a id="pl.40.15"></a><var>40.15</var>subdivision 9; who<br/>
<a id="pl.40.16"></a><var>40.16</var>    (6) are eligible under paragraph (j); or who<br/>
<a id="pl.40.17"></a><var>40.17</var>    (7) receive treatment funded pursuant to section 
         <statute_ref>254B.02</statute_ref> are exempt from the <br/>
<a id="pl.40.18"></a><var>40.18</var>MinnesotaCare enrollment requirements of this subdivision; or<br/>
<a id="pl.40.19"></a><var>40.19</var>    (8) reside in the Minnesota sex offender program defined in chapter 246B.<br/>
<a id="pl.40.20"></a><var>40.20</var>    (f) For applications received on or after October 1, 2003, eligibility may begin no <br/>
<a id="pl.40.21"></a><var>40.21</var>earlier than the date of application. For individuals eligible under paragraph (a), clause <br/>
<a id="pl.40.22"></a><var>40.22</var>(2), item (i), a redetermination of eligibility must occur every 12 months. Individuals are <br/>
<a id="pl.40.23"></a><var>40.23</var>eligible under paragraph (a), clause (2), item (ii), only during inpatient hospitalization but <br/>
<a id="pl.40.24"></a><var>40.24</var>may reapply if there is a subsequent period of inpatient hospitalization.<br/>
<a id="pl.40.25"></a><var>40.25</var>    (g) Beginning September 1, 2006, Minnesota health care program applications and <br/>
<a id="pl.40.26"></a><var>40.26</var>renewals completed by recipients and applicants who are persons described in paragraph <br/>
<a id="pl.40.27"></a><var>40.27</var>(c) and submitted to the county agency shall be determined for MinnesotaCare eligibility <br/>
<a id="pl.40.28"></a><var>40.28</var>by the county agency. If all other eligibility requirements of this subdivision are met, <br/>
<a id="pl.40.29"></a><var>40.29</var>eligibility for general assistance medical care shall be available in any month during which <br/>
<a id="pl.40.30"></a><var>40.30</var>MinnesotaCare enrollment is pending. Upon notification of eligibility for MinnesotaCare, <br/>
<a id="pl.40.31"></a><var>40.31</var>notice of termination for eligibility for general assistance medical care shall be sent to <br/>
<a id="pl.40.32"></a><var>40.32</var>an applicant or recipient. If all other eligibility requirements of this subdivision are <br/>
<a id="pl.40.33"></a><var>40.33</var>met, eligibility for general assistance medical care shall be available until enrollment in <br/>
<a id="pl.40.34"></a><var>40.34</var>MinnesotaCare subject to the provisions of paragraphs (c), (e), and (f).<br/>
<a id="pl.40.35"></a><var>40.35</var>    (h) The date of an initial Minnesota health care program application necessary to <br/>
<a id="pl.40.36"></a><var>40.36</var>begin a determination of eligibility shall be the date the applicant has provided a name, <br/>
<a id="pl.41.1"></a><var>41.1</var>address, and Social Security number, signed and dated, to the county agency or the <br/>
<a id="pl.41.2"></a><var>41.2</var>Department of Human Services. If the applicant is unable to provide a name, address, <br/>
<a id="pl.41.3"></a><var>41.3</var>Social Security number, and signature when health care is delivered due to a medical <br/>
<a id="pl.41.4"></a><var>41.4</var>condition or disability, a health care provider may act on an applicant's behalf to establish <br/>
<a id="pl.41.5"></a><var>41.5</var>the date of an initial Minnesota health care program application by providing the county <br/>
<a id="pl.41.6"></a><var>41.6</var>agency or Department of Human Services with provider identification and a temporary <br/>
<a id="pl.41.7"></a><var>41.7</var>unique identifier for the applicant. The applicant must complete the remainder of the <br/>
<a id="pl.41.8"></a><var>41.8</var>application and provide necessary verification before eligibility can be determined. The <br/>
<a id="pl.41.9"></a><var>41.9</var>county agency must assist the applicant in obtaining verification if necessary.<br/>
<a id="pl.41.10"></a><var>41.10</var>    (i) County agencies are authorized to use all automated databases containing <br/>
<a id="pl.41.11"></a><var>41.11</var>information regarding recipients' or applicants' income in order to determine eligibility for <br/>
<a id="pl.41.12"></a><var>41.12</var>general assistance medical care or MinnesotaCare. Such use shall be considered sufficient <br/>
<a id="pl.41.13"></a><var>41.13</var>in order to determine eligibility and premium payments by the county agency.<br/>
<a id="pl.41.14"></a><var>41.14</var>    (j) General assistance medical care is not available for a person in a correctional <br/>
<a id="pl.41.15"></a><var>41.15</var>facility unless the person is detained by law for less than one year in a county correctional <br/>
<a id="pl.41.16"></a><var>41.16</var>or detention facility as a person accused or convicted of a crime, or admitted as an <br/>
<a id="pl.41.17"></a><var>41.17</var>inpatient to a hospital on a criminal hold order, and the person is a recipient of general <br/>
<a id="pl.41.18"></a><var>41.18</var>assistance medical care at the time the person is detained by law or admitted on a criminal <br/>
<a id="pl.41.19"></a><var>41.19</var>hold order and as long as the person continues to meet other eligibility requirements <br/>
<a id="pl.41.20"></a><var>41.20</var>of this subdivision.<br/>
<a id="pl.41.21"></a><var>41.21</var>    (k) General assistance medical care is not available for applicants or recipients who <br/>
<a id="pl.41.22"></a><var>41.22</var>do not cooperate with the county agency to meet the requirements of medical assistance.<br/>
<a id="pl.41.23"></a><var>41.23</var>    (l) In determining the amount of assets of an individual eligible under paragraph <br/>
<a id="pl.41.24"></a><var>41.24</var>(a), clause (2), item (i), there shall be included any asset or interest in an asset, including <br/>
<a id="pl.41.25"></a><var>41.25</var>an asset excluded under paragraph (a), that was given away, sold, or disposed of for <br/>
<a id="pl.41.26"></a><var>41.26</var>less than fair market value within the 60 months preceding application for general <br/>
<a id="pl.41.27"></a><var>41.27</var>assistance medical care or during the period of eligibility. Any transfer described in this <br/>
<a id="pl.41.28"></a><var>41.28</var>paragraph shall be presumed to have been for the purpose of establishing eligibility for <br/>
<a id="pl.41.29"></a><var>41.29</var>general assistance medical care, unless the individual furnishes convincing evidence to <br/>
<a id="pl.41.30"></a><var>41.30</var>establish that the transaction was exclusively for another purpose. For purposes of this <br/>
<a id="pl.41.31"></a><var>41.31</var>paragraph, the value of the asset or interest shall be the fair market value at the time it <br/>
<a id="pl.41.32"></a><var>41.32</var>was given away, sold, or disposed of, less the amount of compensation received. For any <br/>
<a id="pl.41.33"></a><var>41.33</var>uncompensated transfer, the number of months of ineligibility, including partial months, <br/>
<a id="pl.41.34"></a><var>41.34</var>shall be calculated by dividing the uncompensated transfer amount by the average monthly <br/>
<a id="pl.41.35"></a><var>41.35</var>per person payment made by the medical assistance program to skilled nursing facilities <br/>
<a id="pl.41.36"></a><var>41.36</var>for the previous calendar year. The individual shall remain ineligible until this fixed period <br/>
<a id="pl.42.1"></a><var>42.1</var>has expired. The period of ineligibility may exceed 30 months, and a reapplication for <br/>
<a id="pl.42.2"></a><var>42.2</var>benefits after 30 months from the date of the transfer shall not result in eligibility unless <br/>
<a id="pl.42.3"></a><var>42.3</var>and until the period of ineligibility has expired. The period of ineligibility begins in the <br/>
<a id="pl.42.4"></a><var>42.4</var>month the transfer was reported to the county agency, or if the transfer was not reported, <br/>
<a id="pl.42.5"></a><var>42.5</var>the month in which the county agency discovered the transfer, whichever comes first. For <br/>
<a id="pl.42.6"></a><var>42.6</var>applicants, the period of ineligibility begins on the date of the first approved application.<br/>
<a id="pl.42.7"></a><var>42.7</var>    (m) When determining eligibility for any state benefits under this subdivision, <br/>
<a id="pl.42.8"></a><var>42.8</var>the income and resources of all noncitizens shall be deemed to include their sponsor's <br/>
<a id="pl.42.9"></a><var>42.9</var>income and resources as defined in the Personal Responsibility and Work Opportunity <br/>
<a id="pl.42.10"></a><var>42.10</var>Reconciliation Act of 1996, title IV, Public Law 104-193, sections 421 and 422, and <br/>
<a id="pl.42.11"></a><var>42.11</var>subsequently set out in federal rules.<br/>
<a id="pl.42.12"></a><var>42.12</var>    (n) Undocumented noncitizens and nonimmigrants are ineligible for general <br/>
<a id="pl.42.13"></a><var>42.13</var>assistance medical care. For purposes of this subdivision, a nonimmigrant is an individual <br/>
<a id="pl.42.14"></a><var>42.14</var>in one or more of the classes listed in United States Code, title 8, section 1101(a)(15), and <br/>
<a id="pl.42.15"></a><var>42.15</var>an undocumented noncitizen is an individual who resides in the United States without the <br/>
<a id="pl.42.16"></a><var>42.16</var>approval or acquiescence of the United States Citizenship and Immigration Services.<br/>
<a id="pl.42.17"></a><var>42.17</var>    (o) Notwithstanding any other provision of law, a noncitizen who is ineligible for <br/>
<a id="pl.42.18"></a><var>42.18</var>medical assistance due to the deeming of a sponsor's income and resources, is ineligible <br/>
<a id="pl.42.19"></a><var>42.19</var>for general assistance medical care.<br/>
<a id="pl.42.20"></a><var>42.20</var>    (p) Effective July 1, 2003, general assistance medical care emergency services end.<br/>
<a id="pl.42.21"></a><var>42.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.41.0"></a><a id="pl.42.22"></a><var>42.22</var>    Sec. 41. Minnesota Statutes 2006, section 524.3-803, is amended to read:<br/>
<a id="pl.42.23"></a><var>42.23</var><b>524.3-803 LIMITATIONS ON PRESENTATION OF CLAIMS.</b><br/>
<a id="pl.42.24"></a><var>42.24</var>    (a) All claims as defined in section 
         <statute_ref>524.1-201</statute_ref>(6), against a decedent's estate which <br/>
<a id="pl.42.25"></a><var>42.25</var>arose before the death of the decedent, including claims of the state and any subdivision <br/>
<a id="pl.42.26"></a><var>42.26</var>thereof, whether due or to become due, absolute or contingent, liquidated or unliquidated, <br/>
<a id="pl.42.27"></a><var>42.27</var>if not barred earlier by other statute of limitations, are barred against the estate, the personal <br/>
<a id="pl.42.28"></a><var>42.28</var>representative, and the heirs and devisees of the decedent, unless presented as follows: <br/>
<a id="pl.42.29"></a><var>42.29</var>    (1) in the case of a creditor who is only entitled, under the United States Constitution <br/>
<a id="pl.42.30"></a><var>42.30</var>and under the Minnesota Constitution, to notice by publication under section 
         <statute_ref>524.3-801</statute_ref>, <br/>
<a id="pl.42.31"></a><var>42.31</var>within four months after the date of the court administrator's notice to creditors which <br/>
<a id="pl.42.32"></a><var>42.32</var>is subsequently published pursuant to section 
         <statute_ref>524.3-801</statute_ref>; <br/>
<a id="pl.42.33"></a><var>42.33</var>    (2) in the case of a creditor who was served with notice under section 
         <statute_ref>524.3-801(c)</statute_ref>, <br/>
<a id="pl.42.34"></a><var>42.34</var>within the later to expire of four months after the date of the first publication of notice to <br/>
<a id="pl.42.35"></a><var>42.35</var>creditors or one month after the service; <br/>
<a id="pl.43.1"></a><var>43.1</var>    (3) within the later to expire of one year after the decedent's death, or one year after <br/>
<a id="pl.43.2"></a><var>43.2</var>June 16, 1989, whether or not notice to creditors has been published or served under <br/>
<a id="pl.43.3"></a><var>43.3</var>section 
         <statute_ref>524.3-801</statute_ref>, provided, however, that in the case of a decedent who died before June <br/>
<a id="pl.43.4"></a><var>43.4</var>16, 1989, no claim which was then barred by any provision of law may be deemed to have <br/>
<a id="pl.43.5"></a><var>43.5</var>been revived by the amendment of this section. Claims authorized by section 246.53, <br/>
<a id="pl.43.6"></a><var>43.6</var>256B.15, or 256D.16 must not be barred after one year as provided in this clause.<br/>
<a id="pl.43.7"></a><var>43.7</var>    (b) All claims against a decedent's estate which arise at or after the death of the <br/>
<a id="pl.43.8"></a><var>43.8</var>decedent, including claims of the state and any subdivision thereof, whether due or to <br/>
<a id="pl.43.9"></a><var>43.9</var>become due, absolute or contingent, liquidated or unliquidated, are barred against the <br/>
<a id="pl.43.10"></a><var>43.10</var>estate, the personal representative, and the heirs and devisees of the decedent, unless <br/>
<a id="pl.43.11"></a><var>43.11</var>presented as follows:<br/>
<a id="pl.43.12"></a><var>43.12</var>    (1) a claim based on a contract with the personal representative, within four months <br/>
<a id="pl.43.13"></a><var>43.13</var>after performance by the personal representative is due;<br/>
<a id="pl.43.14"></a><var>43.14</var>    (2) any other claim, within four months after it arises.<br/>
<a id="pl.43.15"></a><var>43.15</var>    (c) Nothing in this section affects or prevents:<br/>
<a id="pl.43.16"></a><var>43.16</var>    (1) any proceeding to enforce any mortgage, pledge, or other lien upon property <br/>
<a id="pl.43.17"></a><var>43.17</var>of the estate;<br/>
<a id="pl.43.18"></a><var>43.18</var>    (2) any proceeding to establish liability of the decedent or the personal representative <br/>
<a id="pl.43.19"></a><var>43.19</var>for which there is protection by liability insurance, to the limits of the insurance protection <br/>
<a id="pl.43.20"></a><var>43.20</var>only;<br/>
<a id="pl.43.21"></a><var>43.21</var>    (3) the presentment and payment at any time within one year after the decedent's <br/>
<a id="pl.43.22"></a><var>43.22</var>death of any claim arising before the death of the decedent that is referred to in section <br/>
<statute_ref><a id="pl.43.23"></a><var>43.23</var>524.3-715
         </statute_ref>, clause (18), although the same may be otherwise barred under this section; or <br/>
<a id="pl.43.24"></a><var>43.24</var>    (4) the presentment and payment at any time before a petition is filed in compliance <br/>
<a id="pl.43.25"></a><var>43.25</var>with section 
         <statute_ref>524.3-1001</statute_ref> or 
         <statute_ref>524.3-1002</statute_ref> or a closing statement is filed under section <br/>
<statute_ref><a id="pl.43.26"></a><var>43.26</var>524.3-1003
         </statute_ref>, of: <br/>
<a id="pl.43.27"></a><var>43.27</var>    (i) any claim arising after the death of the decedent that is referred to in section <br/>
<statute_ref><a id="pl.43.28"></a><var>43.28</var>524.3-715
         </statute_ref>, clause (18), although the same may be otherwise barred hereunder; <br/>
<a id="pl.43.29"></a><var>43.29</var>    (ii) any other claim, including claims subject to clause (3), which would otherwise be <br/>
<a id="pl.43.30"></a><var>43.30</var>barred hereunder, upon allowance by the court upon petition of the personal representative <br/>
<a id="pl.43.31"></a><var>43.31</var>or the claimant for cause shown on notice and hearing as the court may direct.<br/>
<br/>
<a id="bill.1.42.0"></a><a id="pl.43.32"></a><var>43.32</var>    Sec. 42. <b>NURSING FACILITY PENSION COSTS.</b><br/>
<a id="pl.43.33"></a><var>43.33</var>    The commissioner of human services shall evaluate the extent to which the <br/>
<a id="pl.43.34"></a><var>43.34</var>alternative payment system reimbursement methodology for pension costs leads to <br/>
<a id="pl.43.35"></a><var>43.35</var>funding shortfalls for nursing facilities that convert from public to private ownership. The <br/>
<a id="pl.44.1"></a><var>44.1</var>commissioner shall report to the legislature by January 15, 2009, recommendations for <br/>
<a id="pl.44.2"></a><var>44.2</var>any changes to the alternative payment system reimbursement methodology for pension <br/>
<a id="pl.44.3"></a><var>44.3</var>costs necessary to ensure the financial viability of nursing facilities. The commissioner <br/>
<a id="pl.44.4"></a><var>44.4</var>shall pay for any costs related to this study using existing resources.<br/>
<br/>
<a id="bill.1.43.0"></a><a id="pl.44.5"></a><var>44.5</var>    Sec. 43. <b>NURSING FACILITY RATE DISPARITY REPORT.</b><br/>
<a id="pl.44.6"></a><var>44.6</var>    The commissioner of human services shall study and make a report to the legislature <br/>
<a id="pl.44.7"></a><var>44.7</var>by January 15, 2009, with recommendations to reduce rate disparities between nursing <br/>
<a id="pl.44.8"></a><var>44.8</var>facilities in various regions of the state. The recommendations shall include cost estimates <br/>
<a id="pl.44.9"></a><var>44.9</var>and may include a phase-in schedule. The study shall be accomplished using existing <br/>
<a id="pl.44.10"></a><var>44.10</var>resources.<br/>
<br/>
<a id="bill.1.44.0"></a><a id="pl.44.11"></a><var>44.11</var>    Sec. 44. <b>HOME MODIFICATIONS.</b><br/>
<a id="pl.44.12"></a><var>44.12</var>    Effective upon federal approval, the costs associated with home modifications <br/>
<a id="pl.44.13"></a><var>44.13</var>that add to the square footage of an unlicensed private residence when necessary to <br/>
<a id="pl.44.14"></a><var>44.14</var>complete a modification to configure a bathroom to accommodate a wheelchair may <br/>
<a id="pl.44.15"></a><var>44.15</var>be allowed expenses for home and community-based waiver services provided under <br/>
<a id="pl.44.16"></a><var>44.16</var>Minnesota Statutes, sections 256B.0916 and 256B.49, for persons with disabilities when <br/>
<a id="pl.44.17"></a><var>44.17</var>the following conditions are met:<br/>
<a id="pl.44.18"></a><var>44.18</var>    (1) the annual cost of the care and modifications for the waiver recipient does not <br/>
<a id="pl.44.19"></a><var>44.19</var>exceed the cost of care that would otherwise be incurred for the recipient without the <br/>
<a id="pl.44.20"></a><var>44.20</var>modification, as determined by the local lead agency;<br/>
<a id="pl.44.21"></a><var>44.21</var>    (2) the modification is based on the assessed needs, goals, and best interest of the <br/>
<a id="pl.44.22"></a><var>44.22</var>recipient as identified in the plan of care;<br/>
<a id="pl.44.23"></a><var>44.23</var>    (3) the modification has been found to be the least costly appropriate alternative after <br/>
<a id="pl.44.24"></a><var>44.24</var>other alternatives have been explored through an evaluation by the local lead agency; and<br/>
<a id="pl.44.25"></a><var>44.25</var>    (4) the modification is reasonable given the value and size of the home.<br/>
<br/>
<a id="bill.1.45.0"></a><a id="pl.44.26"></a><var>44.26</var>    Sec. 45. <b>WAIVER AMENDMENT.</b><br/>
<a id="pl.44.27"></a><var>44.27</var>    The commissioner of human services shall submit an amendment to the Centers for <br/>
<a id="pl.44.28"></a><var>44.28</var>Medicare and Medicaid Services consistent with section 44 by October 1, 2008.<br/>
<a id="pl.44.29"></a><var>44.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.46.0"></a><a id="pl.44.30"></a><var>44.30</var>    Sec. 46. <b>APPROPRIATION.</b><br/>
<a id="pl.44.31"></a><var>44.31</var>    $65,000 is appropriated in the fiscal year beginning July 1, 2008, from the <br/>
<a id="pl.44.32"></a><var>44.32</var>state government special revenue fund to the administrative services unit to pay for <br/>
<a id="pl.44.33"></a><var>44.33</var>medical professional liability insurance coverage required under Minnesota Statutes, <br/>
<a id="pl.45.1"></a><var>45.1</var>section 214.40. This appropriation shall become part of the base appropriation for <br/>
<a id="pl.45.2"></a><var>45.2</var>the administrative services unit and shall be annually adjusted based on the cost of the <br/>
<a id="pl.45.3"></a><var>45.3</var>coverage purchased to comply with Minnesota Statutes, section 214.40.<br/>
<br/>
<a id="bill.1.47.0"></a><a id="pl.45.4"></a><var>45.4</var>    Sec. 47. <b> REPEALER.</b><br/>
<a id="pl.45.5"></a><var>45.5</var>(a) Minnesota Statutes 2006, section 256B.0571, subdivision 8a, is repealed.<br/>
<a id="pl.45.6"></a><var>45.6</var>(b) Laws 2003, First Special Session chapter 5, section 11, is repealed.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.45.9"></a><var>45.9</var>    Section 1. Minnesota Statutes 2006, section 13.851, is amended by adding a <br/>
<a id="pl.45.10"></a><var>45.10</var>subdivision to read:<br/>
<a id="pl.45.11"></a><var>45.11</var>    Subd. 9. <b>Civil commitment of sexual offenders.</b> Data relating to the preparation <br/>
<a id="pl.45.12"></a><var>45.12</var>of a petition to commit an individual as a sexual psychopathic personality or sexually <br/>
<a id="pl.45.13"></a><var>45.13</var>dangerous person is governed by section 253B.185, subdivision 1b.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.45.14"></a><var>45.14</var>    Sec. 2. Minnesota Statutes 2006, section 246B.02, is amended to read:<br/>
<a id="pl.45.15"></a><var>45.15</var><b>246B.02 ESTABLISHMENT OF MINNESOTA SEX OFFENDER PROGRAM.</b><br/>
<a id="pl.45.16"></a><var>45.16</var>    The commissioner of human services shall establish and maintain a secure facility <br/>
<a id="pl.45.17"></a><var>45.17</var>located in Moose Lake. The facility shall be operated by the Minnesota sex offender <br/>
<a id="pl.45.18"></a><var>45.18</var>program. The program shall provide care and treatment in secure treatment facilities <br/>
<a id="pl.45.19"></a><var>45.19</var>to persons on a court-hold order and residing in a secure treatment facility or program <br/>
<a id="pl.45.20"></a><var>45.20</var>pending commitment or committed by the courts as sexual psychopathic personalities <br/>
<a id="pl.45.21"></a><var>45.21</var>or sexually dangerous persons, or persons admitted there with the consent of the <br/>
<a id="pl.45.22"></a><var>45.22</var>commissioner of human services.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.45.23"></a><var>45.23</var>    Sec. 3. <b>[246B.06] ESTABLISHMENT OF MINNESOTA STATE INDUSTRIES.</b><br/>
<a id="pl.45.24"></a><var>45.24</var>    Subdivision 1. <b>Establishment; purpose.</b> (a) The commissioner of human <br/>
<a id="pl.45.25"></a><var>45.25</var>services may establish, equip, maintain, and operate the Minnesota State Industries at <br/>
<a id="pl.45.26"></a><var>45.26</var>any Minnesota sex offender program facility under this chapter. The commissioner <br/>
<a id="pl.45.27"></a><var>45.27</var>may establish industrial and commercial activities for sex offender treatment patients <br/>
<a id="pl.45.28"></a><var>45.28</var>as the commissioner deems necessary and suitable to the profitable employment, <br/>
<a id="pl.45.29"></a><var>45.29</var>educational training, and development of proper work habits of patients consistent with <br/>
<a id="pl.45.30"></a><var>45.30</var>the requirements in section 246B.05. The industrial and commercial activities authorized <br/>
<a id="pl.45.31"></a><var>45.31</var>by this section are designated Minnesota State Industries and must be for the primary <br/>
<a id="pl.45.32"></a><var>45.32</var>purpose of sustaining and ensuring Minnesota State Industries' self-sufficiency, providing <br/>
<a id="pl.46.1"></a><var>46.1</var>educational training, meaningful employment, and the teaching of proper work habits to <br/>
<a id="pl.46.2"></a><var>46.2</var>the patients of the Minnesota sex offender program under this chapter, and not solely as <br/>
<a id="pl.46.3"></a><var>46.3</var>competitive business ventures. <br/>
<a id="pl.46.4"></a><var>46.4</var>    (b) The net profits from Minnesota State Industries must be used for the benefit <br/>
<a id="pl.46.5"></a><var>46.5</var>of the patients as it relates to building education and self-sufficiency skills. Prior to <br/>
<a id="pl.46.6"></a><var>46.6</var>the establishment of any industrial and commercial activity, the commissioner of <br/>
<a id="pl.46.7"></a><var>46.7</var>human services shall consult with stakeholders including representatives of business, <br/>
<a id="pl.46.8"></a><var>46.8</var>industry, organized labor, the commissioner of education, the state Apprenticeship <br/>
<a id="pl.46.9"></a><var>46.9</var>Council, the commissioner of labor and industry, the commissioner of employment and <br/>
<a id="pl.46.10"></a><var>46.10</var>economic development, the commissioner of administration, and other stakeholders the <br/>
<a id="pl.46.11"></a><var>46.11</var>commissioner deems qualified. The purpose of the stakeholder consultation is to determine <br/>
<a id="pl.46.12"></a><var>46.12</var>the quantity and nature of the goods, wares, merchandise, and services to be made or <br/>
<a id="pl.46.13"></a><var>46.13</var>provided, and the types of processes to be used in their manufacture, processing, repair, <br/>
<a id="pl.46.14"></a><var>46.14</var>and production consistent with the greatest opportunity for the reform and educational <br/>
<a id="pl.46.15"></a><var>46.15</var>training of the patients, and with the best interests of the state, business, industry, and labor.<br/>
<a id="pl.46.16"></a><var>46.16</var>    (c) The commissioner of human services shall, at all times in the conduct of any <br/>
<a id="pl.46.17"></a><var>46.17</var>industrial or commercial activity authorized by this section, utilize patient labor to the <br/>
<a id="pl.46.18"></a><var>46.18</var>greatest extent feasible, provided that the commissioner may employ all administrative, <br/>
<a id="pl.46.19"></a><var>46.19</var>supervisory, and other skilled workers necessary to the proper instruction of the patients <br/>
<a id="pl.46.20"></a><var>46.20</var>and the profitable and efficient operation of the industrial and commercial activities <br/>
<a id="pl.46.21"></a><var>46.21</var>authorized by this section.<br/>
<a id="pl.46.22"></a><var>46.22</var>    (d) The commissioner of human services may authorize the director of any <br/>
<a id="pl.46.23"></a><var>46.23</var>Minnesota sex offender treatment facility under the commissioner's control to accept <br/>
<a id="pl.46.24"></a><var>46.24</var>work projects from outside sources for processing, fabrication, or repair, provided that <br/>
<a id="pl.46.25"></a><var>46.25</var>preference is given to the performance of work projects for state departments and agencies.<br/>
<a id="pl.46.26"></a><var>46.26</var>    Subd. 2. <b>Revolving fund.</b> As described in section 246B.05, subdivision 2, there <br/>
<a id="pl.46.27"></a><var>46.27</var>is established a Minnesota State Industries revolving fund under the control of the <br/>
<a id="pl.46.28"></a><var>46.28</var>commissioner of human services. The revolving fund must be used for Minnesota State <br/>
<a id="pl.46.29"></a><var>46.29</var>Industries authorized under this section, including, but not limited to, the purchase of <br/>
<a id="pl.46.30"></a><var>46.30</var>equipment and raw materials, the payment of salaries and wages, and other necessary <br/>
<a id="pl.46.31"></a><var>46.31</var>expenses as determined by the commissioner of human services. The purchase of <br/>
<a id="pl.46.32"></a><var>46.32</var>services, materials, and commodities used in and held for resale are not subject to the <br/>
<a id="pl.46.33"></a><var>46.33</var>competitive bidding procedures of section 16C.06, but are subject to all other provisions <br/>
<a id="pl.46.34"></a><var>46.34</var>of chapters 16B and 16C. When practical, purchases must be made from small targeted <br/>
<a id="pl.46.35"></a><var>46.35</var>group businesses designated under section 16C.16. Additionally, the expenses of patient <br/>
<a id="pl.46.36"></a><var>46.36</var>educational training and self-sufficiency skills may be financed from the revolving fund <br/>
<a id="pl.47.1"></a><var>47.1</var>in an amount to be determined by the commissioner or designee. The proceeds and <br/>
<a id="pl.47.2"></a><var>47.2</var>income from all Minnesota State Industries conducted at the Minnesota sex offender <br/>
<a id="pl.47.3"></a><var>47.3</var>treatment facilities must be deposited in the revolving  fund subject to disbursement under <br/>
<a id="pl.47.4"></a><var>47.4</var>subdivision 3. The commissioner of human services may request that money in the fund <br/>
<a id="pl.47.5"></a><var>47.5</var>be invested pursuant to section 11A.25. Proceeds from the investment not currently <br/>
<a id="pl.47.6"></a><var>47.6</var>needed must be accounted for separately and credited to the revolving fund. <br/>
<a id="pl.47.7"></a><var>47.7</var>    Subd. 3. <b>Disbursement from fund.</b> The Minnesota State Industries revolving <br/>
<a id="pl.47.8"></a><var>47.8</var>fund must be deposited in the state treasury and paid out only on proper vouchers as <br/>
<a id="pl.47.9"></a><var>47.9</var>authorized and approved by the commissioner of human services, and in the same manner <br/>
<a id="pl.47.10"></a><var>47.10</var>and under the same restrictions as are now provided by law for the disbursement of funds <br/>
<a id="pl.47.11"></a><var>47.11</var>by the commissioner. An amount deposited in the state treasury equal to six months <br/>
<a id="pl.47.12"></a><var>47.12</var>of net operating cash as determined by the prior 12 months of revenue and cash flow <br/>
<a id="pl.47.13"></a><var>47.13</var>statements must be restricted for use only by Minnesota State Industries as described <br/>
<a id="pl.47.14"></a><var>47.14</var>under subdivision 2. For purposes of this subdivision, "net operating cash" means net <br/>
<a id="pl.47.15"></a><var>47.15</var>income, minus sales, plus cost of goods sold. Cost of goods sold  include all direct costs <br/>
<a id="pl.47.16"></a><var>47.16</var>of industry products attributable to the goods' production.<br/>
<a id="pl.47.17"></a><var>47.17</var>    Subd. 4. <b>Revolving fund; borrowing.</b>  The commissioner of human services is <br/>
<a id="pl.47.18"></a><var>47.18</var>authorized to borrow sums of money as the commissioner deems necessary to meet <br/>
<a id="pl.47.19"></a><var>47.19</var>current demands on the Minnesota State Industries revolving fund. The sums borrowed <br/>
<a id="pl.47.20"></a><var>47.20</var>must not exceed, in any calendar year, six months of net operating cash as determined <br/>
<a id="pl.47.21"></a><var>47.21</var>by the previous 12 months of the industries' revenue and cash flow statements. If the <br/>
<a id="pl.47.22"></a><var>47.22</var>commissioner of human services determines that borrowing of funds is necessary, the <br/>
<a id="pl.47.23"></a><var>47.23</var>commissioner of human services shall certify this need to the commissioner of finance. <br/>
<a id="pl.47.24"></a><var>47.24</var>Funds may be borrowed from general fund appropriations to the Minnesota sex offender <br/>
<a id="pl.47.25"></a><var>47.25</var>program with the authorization of the commissioner of finance. Upon authorization of the <br/>
<a id="pl.47.26"></a><var>47.26</var>commissioner of finance, the transfer must be made and credited to the Minnesota State <br/>
<a id="pl.47.27"></a><var>47.27</var>Industries revolving fund. The sum transferred to the Minnesota State Industries revolving <br/>
<a id="pl.47.28"></a><var>47.28</var>fund must be repaid by the commissioner of human services from the revolving fund to <br/>
<a id="pl.47.29"></a><var>47.29</var>the fund from which it was transferred in a time period specified by the commissioner <br/>
<a id="pl.47.30"></a><var>47.30</var>of finance, but by no later than the end of the biennium, as defined in section 16A.011, <br/>
<a id="pl.47.31"></a><var>47.31</var>in which the loan is made. When any transfer is made to the Minnesota State Industries <br/>
<a id="pl.47.32"></a><var>47.32</var>revolving fund, the commissioner of finance shall notify the commissioner of human <br/>
<a id="pl.47.33"></a><var>47.33</var>services of the amount transferred to the fund and the date the transfer is to be repaid.<br/>
<a id="pl.47.34"></a><var>47.34</var>    Subd. 5. <b>Federal grant fund transfers.</b> Grants received by the commissioner of <br/>
<a id="pl.47.35"></a><var>47.35</var>human services from the federal government for any vocational training program or for <br/>
<a id="pl.48.1"></a><var>48.1</var>administration by the commissioner of human services must (1) be credited to a federal <br/>
<a id="pl.48.2"></a><var>48.2</var>grant fund and then (2) be transferred from the federal grant fund to the credit of the <br/>
<a id="pl.48.3"></a><var>48.3</var>commissioner of human services in the appropriate account upon certification by the <br/>
<a id="pl.48.4"></a><var>48.4</var>commissioner of human services that the amounts requested to be transferred have been <br/>
<a id="pl.48.5"></a><var>48.5</var>earned or are required for the purposes of this section. Funds received by the federal <br/>
<a id="pl.48.6"></a><var>48.6</var>grant fund need not be budgeted as such, provided transfers from the fund are budgeted <br/>
<a id="pl.48.7"></a><var>48.7</var>for allotment purposes in the appropriate appropriation.<br/>
<a id="pl.48.8"></a><var>48.8</var>    Subd. 6. <b>Wages.</b> Notwithstanding section 177.24 or any other law to the <br/>
<a id="pl.48.9"></a><var>48.9</var>contrary, wages paid to patients working within this program are at the discretion of the <br/>
<a id="pl.48.10"></a><var>48.10</var>commissioner of human services.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.48.11"></a><var>48.11</var>    Sec. 4. Minnesota Statutes 2006, section 253B.045, subdivision 1, is amended to read:<br/>
<a id="pl.48.12"></a><var>48.12</var>    Subdivision 1. <b>Restriction.</b> Except when ordered by the court pursuant to a finding <br/>
<a id="pl.48.13"></a><var>48.13</var>of necessity to protect the life of the proposed patient or others, or as provided under <br/>
<a id="pl.48.14"></a><var>48.14</var>subdivision 1a, no person subject to the provisions of this chapter shall be confined in a <br/>
<a id="pl.48.15"></a><var>48.15</var>jail or correctional institution, except pursuant to chapter 242 or 244.<br/>
<a id="pl.48.16"></a><var>48.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.48.17"></a><var>48.17</var>    Sec. 5. Minnesota Statutes 2006, section 253B.045, is amended by adding a <br/>
<a id="pl.48.18"></a><var>48.18</var>subdivision to read:<br/>
<a id="pl.48.19"></a><var>48.19</var>    Subd. 1a. <b>Exception.</b> A person who is being petitioned for commitment <br/>
<a id="pl.48.20"></a><var>48.20</var>under section 253B.185 and who is placed under a judicial hold order under section <br/>
<a id="pl.48.21"></a><var>48.21</var>253B.07, subdivision 2b or 7, may be confined at a Department of Corrections or a <br/>
<a id="pl.48.22"></a><var>48.22</var>county correctional or detention facility, rather than a secure treatment facility, until a <br/>
<a id="pl.48.23"></a><var>48.23</var>determination of the commitment petition as specified in this subdivision.<br/>
<a id="pl.48.24"></a><var>48.24</var>    (a) A court may order that a person who is being petitioned for commitment under <br/>
<a id="pl.48.25"></a><var>48.25</var>section 253B.185 be confined in a Department of Corrections facility pursuant to the <br/>
<a id="pl.48.26"></a><var>48.26</var>judicial hold order under the following circumstances and conditions:<br/>
<a id="pl.48.27"></a><var>48.27</var>    (1) The person is currently serving a sentence in a Department of Corrections <br/>
<a id="pl.48.28"></a><var>48.28</var>facility and the court determines that the person has made a knowing and voluntary (i) <br/>
<a id="pl.48.29"></a><var>48.29</var>waiver of the right to be held in a secure treatment facility and (ii) election to be held in a <br/>
<a id="pl.48.30"></a><var>48.30</var>Department of Corrections facility. The order confining the person in the Department of <br/>
<a id="pl.48.31"></a><var>48.31</var>Corrections facility shall remain in effect until the court vacates the order or the person's <br/>
<a id="pl.48.32"></a><var>48.32</var>criminal sentence and conditional release term expire.<br/>
<a id="pl.49.1"></a><var>49.1</var>    In no case may the person be held in a Department of Corrections facility pursuant <br/>
<a id="pl.49.2"></a><var>49.2</var>only to this subdivision, and not pursuant to any separate correctional authority, for more <br/>
<a id="pl.49.3"></a><var>49.3</var>than 210 days.<br/>
<a id="pl.49.4"></a><var>49.4</var>    (2)  A person who has elected to be confined in a Department of Corrections facility <br/>
<a id="pl.49.5"></a><var>49.5</var>under this subdivision may revoke the election by filing a written notice of intent to revoke <br/>
<a id="pl.49.6"></a><var>49.6</var>the election with the court and serving the notice upon the Department of Corrections and <br/>
<a id="pl.49.7"></a><var>49.7</var>the county attorney. The court shall order the person transferred to a secure treatment <br/>
<a id="pl.49.8"></a><var>49.8</var>facility within 15 days of the date that the notice of revocation was filed with the court, <br/>
<a id="pl.49.9"></a><var>49.9</var>except that, if the person has additional time to serve in prison at the end of the 15-day <br/>
<a id="pl.49.10"></a><var>49.10</var>period, the person shall not be transferred to a secure treatment facility until the person's <br/>
<a id="pl.49.11"></a><var>49.11</var>prison term expires. After a person has revoked an election to remain in a Department of <br/>
<a id="pl.49.12"></a><var>49.12</var>Corrections facility under this subdivision, the court may not adopt another election to <br/>
<a id="pl.49.13"></a><var>49.13</var>remain in a Department of Corrections facility without the agreement of both parties and <br/>
<a id="pl.49.14"></a><var>49.14</var>the Department of Corrections.<br/>
<a id="pl.49.15"></a><var>49.15</var>    (3) Upon petition by the commissioner of corrections, after notice to the parties <br/>
<a id="pl.49.16"></a><var>49.16</var>and opportunity for hearing and for good cause shown, the court may order that the <br/>
<a id="pl.49.17"></a><var>49.17</var>person's place of confinement be changed from the Department of Corrections to a secure <br/>
<a id="pl.49.18"></a><var>49.18</var>treatment facility.<br/>
<a id="pl.49.19"></a><var>49.19</var>    (4) While at a Department of Corrections facility pursuant to this subdivision, the <br/>
<a id="pl.49.20"></a><var>49.20</var>person shall remain subject to all rules and practices applicable to correctional inmates <br/>
<a id="pl.49.21"></a><var>49.21</var>in the facility in which the person is placed including, but not limited to, the powers and <br/>
<a id="pl.49.22"></a><var>49.22</var>duties of the commissioner of corrections under section 241.01, powers relating to use of <br/>
<a id="pl.49.23"></a><var>49.23</var>force under section 243.52, and the right of the commissioner of corrections to determine <br/>
<a id="pl.49.24"></a><var>49.24</var>the place of confinement in a prison, reformatory, or other facility.<br/>
<a id="pl.49.25"></a><var>49.25</var>    (5) A person may not be confined in a Department of Corrections facility under this <br/>
<a id="pl.49.26"></a><var>49.26</var>provision beyond the end of the person's executed sentence or the end of any applicable <br/>
<a id="pl.49.27"></a><var>49.27</var>conditional release period, whichever is later. If a person confined in a Department of <br/>
<a id="pl.49.28"></a><var>49.28</var>Corrections facility pursuant to this provision reaches the person's supervised release <br/>
<a id="pl.49.29"></a><var>49.29</var>date and is subject to a period of conditional release, the period of conditional release <br/>
<a id="pl.49.30"></a><var>49.30</var>shall commence on the supervised release date even though the person remains in the <br/>
<a id="pl.49.31"></a><var>49.31</var>Department of Corrections facility pursuant to this provision. At the end of the later of <br/>
<a id="pl.49.32"></a><var>49.32</var>the executed sentence or any applicable conditional release period, the person shall be <br/>
<a id="pl.49.33"></a><var>49.33</var>transferred to a secure treatment facility.<br/>
<a id="pl.49.34"></a><var>49.34</var>    (6) Nothing in this section may be construed to establish a right of an inmate in a <br/>
<a id="pl.49.35"></a><var>49.35</var>state correctional facility to participate in sex offender treatment. This section must be <br/>
<a id="pl.49.36"></a><var>49.36</var>construed in a manner consistent with the provisions of section 244.03.<br/>
<a id="pl.50.1"></a><var>50.1</var>    (b) The committing county may offer a person who is being petitioned for <br/>
<a id="pl.50.2"></a><var>50.2</var>commitment under section 253B.185 and who is placed under a judicial hold order under <br/>
<a id="pl.50.3"></a><var>50.3</var>section 253B.07, subdivision 2b or 7, the option to be held in a county correctional or <br/>
<a id="pl.50.4"></a><var>50.4</var>detention facility rather than a secure treatment facility, under such terms as may be agreed <br/>
<a id="pl.50.5"></a><var>50.5</var>to by the county, the commitment petitioner, and the commitment respondent. If a person <br/>
<a id="pl.50.6"></a><var>50.6</var>makes such an election under this paragraph, the court hold order shall specify the terms <br/>
<a id="pl.50.7"></a><var>50.7</var>of the agreement, including the conditions for revoking the election.<br/>
<a id="pl.50.8"></a><var>50.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.50.9"></a><var>50.9</var>    Sec. 6. Minnesota Statutes 2006, section 253B.045, subdivision 2, is amended to read:<br/>
<a id="pl.50.10"></a><var>50.10</var>    Subd. 2. <b>Facilities.</b> Each county or a group of counties shall maintain or provide <br/>
<a id="pl.50.11"></a><var>50.11</var>by contract a facility for confinement of persons held temporarily for observation, <br/>
<a id="pl.50.12"></a><var>50.12</var>evaluation, diagnosis, treatment, and care. When the temporary confinement is provided <br/>
<a id="pl.50.13"></a><var>50.13</var>at a regional treatment center, the commissioner shall charge the county of financial <br/>
<a id="pl.50.14"></a><var>50.14</var>responsibility for the costs of confinement of persons hospitalized under section 
         <statute_ref>253B.05, <br/>
<a id="pl.50.15"></a><var>50.15</var>subdivisions 1 and 2
         </statute_ref>, and section 
         <statute_ref>253B.07, subdivision 2b</statute_ref>, except that the commissioner <br/>
<a id="pl.50.16"></a><var>50.16</var>shall bill the responsible health plan first. If the person has health plan coverage, but the <br/>
<a id="pl.50.17"></a><var>50.17</var>hospitalization does not meet the criteria in subdivision 6 or section 
         <statute_ref>62M.07</statute_ref>, 
         <statute_ref>62Q.53</statute_ref>, <br/>
<a id="pl.50.18"></a><var>50.18</var>or 
         <statute_ref>62Q.535</statute_ref>, the county is responsible. When a person is temporarily confined in a <br/>
<a id="pl.50.19"></a><var>50.19</var>Department of Corrections facility solely under subdivision 1a, and not based on any <br/>
<a id="pl.50.20"></a><var>50.20</var>separate correctional authority: <br/>
<a id="pl.50.21"></a><var>50.21</var>    (1) the commissioner of corrections may charge the county of financial responsibility <br/>
<a id="pl.50.22"></a><var>50.22</var>for the costs of confinement; and <br/>
<a id="pl.50.23"></a><var>50.23</var>    (2) the Department of Human Services shall use existing appropriations to fund <br/>
<a id="pl.50.24"></a><var>50.24</var>all remaining nonconfinement costs. The funds received by the commissioner for the <br/>
<a id="pl.50.25"></a><var>50.25</var>confinement and nonconfinement costs are appropriated to the department for these <br/>
<a id="pl.50.26"></a><var>50.26</var>purposes.<br/>
<a id="pl.50.27"></a><var>50.27</var>"County of financial responsibility" means the county in which the person resides at the <br/>
<a id="pl.50.28"></a><var>50.28</var>time of confinement or, if the person has no residence in this state, the county which <br/>
<a id="pl.50.29"></a><var>50.29</var>initiated the confinement. The charge for confinement in a facility operated by the <br/>
<a id="pl.50.30"></a><var>50.30</var>commissioner of human services shall be based on the commissioner's determination of <br/>
<a id="pl.50.31"></a><var>50.31</var>the cost of care pursuant to section 
         <statute_ref>246.50, subdivision 5</statute_ref>. When there is a dispute as to <br/>
<a id="pl.50.32"></a><var>50.32</var>which county is the county of financial responsibility, the county charged for the costs of <br/>
<a id="pl.50.33"></a><var>50.33</var>confinement shall pay for them pending final determination of the dispute over financial <br/>
<a id="pl.50.34"></a><var>50.34</var>responsibility. Disputes about the county of financial responsibility shall be submitted to <br/>
<a id="pl.50.35"></a><var>50.35</var>the commissioner to be settled in the manner prescribed in section 
         <statute_ref>256G.09</statute_ref>.<br/>
<a id="pl.51.1"></a><var>51.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.51.2"></a><var>51.2</var>    Sec. 7. Minnesota Statutes 2006, section 253B.18, subdivision 4c, is amended to read:<br/>
<a id="pl.51.3"></a><var>51.3</var>    Subd. 4c. <b>Special review board.</b> (a) The commissioner shall establish one or more <br/>
<a id="pl.51.4"></a><var>51.4</var>panels of a special review board for persons committed as mentally ill and dangerous to <br/>
<a id="pl.51.5"></a><var>51.5</var>the public. The board shall consist of three members experienced in the field of mental <br/>
<a id="pl.51.6"></a><var>51.6</var>illness. One member of each special review board panel shall be a psychiatrist and one <br/>
<a id="pl.51.7"></a><var>51.7</var>member shall be an attorney. No member shall be affiliated with the Department of <br/>
<a id="pl.51.8"></a><var>51.8</var>Human Services. The special review board shall meet at least every six months and at <br/>
<a id="pl.51.9"></a><var>51.9</var>the call of the commissioner. It shall hear and consider all petitions for a reduction in <br/>
<a id="pl.51.10"></a><var>51.10</var>custody or to appeal a revocation of provisional discharge. A "reduction in custody" <br/>
<a id="pl.51.11"></a><var>51.11</var>means transfer from a secure treatment facility; all petitions for, discharge, and provisional <br/>
<a id="pl.51.12"></a><var>51.12</var>discharge, and revocation of provisional discharge; and make recommendations to the <br/>
<a id="pl.51.13"></a><var>51.13</var>commissioner concerning them. Patients may be transferred by the commissioner between <br/>
<a id="pl.51.14"></a><var>51.14</var>secure treatment facilities without a special review board hearing.<br/>
<a id="pl.51.15"></a><var>51.15</var>    (b) Members of the special review board shall receive compensation and <br/>
<a id="pl.51.16"></a><var>51.16</var>reimbursement for expenses as established by the commissioner.<br/>
<a id="pl.51.17"></a><var>51.17</var>    (b) A petition filed by a person committed as mentally ill and dangerous to the <br/>
<a id="pl.51.18"></a><var>51.18</var>public under this section must be heard as provided in subdivision 5 and, as applicable, <br/>
<a id="pl.51.19"></a><var>51.19</var>subdivision 13. A petition filed by a person committed as a sexual psychopathic <br/>
<a id="pl.51.20"></a><var>51.20</var>personality or as a sexually dangerous person under section 253B.185, or committed <br/>
<a id="pl.51.21"></a><var>51.21</var>as both mentally ill and dangerous to the public under this section and as a sexual <br/>
<a id="pl.51.22"></a><var>51.22</var>psychopathic personality or as a sexually dangerous person must be heard as provided in <br/>
<a id="pl.51.23"></a><var>51.23</var>section 253B.185, subdivision 9.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.51.24"></a><var>51.24</var>    Sec. 8. Minnesota Statutes 2006, section 253B.18, subdivision 5, is amended to read:<br/>
<a id="pl.51.25"></a><var>51.25</var>    Subd. 5. <b>Petition; notice of hearing; attendance; order.</b> (a) A petition for an <br/>
<a id="pl.51.26"></a><var>51.26</var>order of transfer, discharge, provisional discharge, a reduction in custody or revocation of <br/>
<a id="pl.51.27"></a><var>51.27</var>provisional discharge shall be filed with the commissioner and may be filed by the patient <br/>
<a id="pl.51.28"></a><var>51.28</var>or by the head of the treatment facility. A patient may not petition the special review <br/>
<a id="pl.51.29"></a><var>51.29</var>board for six months following commitment under subdivision 3 or following the final <br/>
<a id="pl.51.30"></a><var>51.30</var>disposition of any previous petition and subsequent appeal by the patient. The medical <br/>
<a id="pl.51.31"></a><var>51.31</var>director may petition at any time.<br/>
<a id="pl.51.32"></a><var>51.32</var>    (b) Fourteen days prior to the hearing, the committing court, the county attorney of <br/>
<a id="pl.51.33"></a><var>51.33</var>the county of commitment, the designated agency, interested person, the petitioner, and <br/>
<a id="pl.51.34"></a><var>51.34</var>the petitioner's counsel shall be given written notice by the commissioner of the time and <br/>
<a id="pl.52.1"></a><var>52.1</var>place of the hearing before the special review board. Only those entitled to statutory notice <br/>
<a id="pl.52.2"></a><var>52.2</var>of the hearing or those administratively required to attend may be present at the hearing. <br/>
<a id="pl.52.3"></a><var>52.3</var>The patient may designate interested persons to receive notice by providing the names <br/>
<a id="pl.52.4"></a><var>52.4</var>and addresses to the commissioner at least 21 days before the hearing. The board shall <br/>
<a id="pl.52.5"></a><var>52.5</var>provide the commissioner with written findings of fact and recommendations within 21 <br/>
<a id="pl.52.6"></a><var>52.6</var>days of the hearing. The commissioner shall issue an order no later than 14 days after <br/>
<a id="pl.52.7"></a><var>52.7</var>receiving the recommendation of the special review board. A copy of the order shall be <br/>
<a id="pl.52.8"></a><var>52.8</var>sent by certified mail mailed to every person entitled to statutory notice of the hearing <br/>
<a id="pl.52.9"></a><var>52.9</var>within five days after it is signed. No order by the commissioner shall be effective sooner <br/>
<a id="pl.52.10"></a><var>52.10</var>than 30 days after the order is signed, unless the county attorney, the patient, and the <br/>
<a id="pl.52.11"></a><var>52.11</var>commissioner agree that it may become effective sooner.<br/>
<a id="pl.52.12"></a><var>52.12</var>    (c) The special review board shall hold a hearing on each petition prior to making <br/>
<a id="pl.52.13"></a><var>52.13</var>its recommendation to the commissioner. The special review board proceedings are not <br/>
<a id="pl.52.14"></a><var>52.14</var>contested cases as defined in chapter 14. Any person or agency receiving notice that <br/>
<a id="pl.52.15"></a><var>52.15</var>submits documentary evidence to the special review board prior to the hearing shall also <br/>
<a id="pl.52.16"></a><var>52.16</var>provide copies to the patient, the patient's counsel, the county attorney of the county of <br/>
<a id="pl.52.17"></a><var>52.17</var>commitment, the case manager, and the commissioner.<br/>
<a id="pl.52.18"></a><var>52.18</var>    (d) Prior to the final decision by the commissioner, the special review board may be <br/>
<a id="pl.52.19"></a><var>52.19</var>reconvened to consider events or circumstances that occurred subsequent to the hearing.<br/>
<a id="pl.52.20"></a><var>52.20</var>    (e) In making their recommendations and order, the special review board and <br/>
<a id="pl.52.21"></a><var>52.21</var>commissioner must consider any statements received from victims under subdivision 5a.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.52.22"></a><var>52.22</var>    Sec. 9. Minnesota Statutes 2006, section 253B.18, subdivision 5a, is amended to read:<br/>
<a id="pl.52.23"></a><var>52.23</var>    Subd. 5a. <b>Victim notification of petition and release; right to submit statement.</b><br/>
<a id="pl.52.24"></a><var>52.24</var>    (a) As used in this subdivision:<br/>
<a id="pl.52.25"></a><var>52.25</var>    (1) "crime" has the meaning given to "violent crime" in section 
         <statute_ref>609.1095</statute_ref>, and <br/>
<a id="pl.52.26"></a><var>52.26</var>includes criminal sexual conduct in the fifth degree and offenses within the definition of <br/>
<a id="pl.52.27"></a><var>52.27</var>"crime against the person" in section 
         <statute_ref>253B.02, subdivision 4a</statute_ref>, and also includes offenses <br/>
<a id="pl.52.28"></a><var>52.28</var>listed in section 
         <statute_ref>253B.02, subdivision 7a</statute_ref>, paragraph (b), regardless of whether they are <br/>
<a id="pl.52.29"></a><var>52.29</var>sexually motivated;<br/>
<a id="pl.52.30"></a><var>52.30</var>    (2) "victim" means a person who has incurred loss or harm as a result of a crime <br/>
<a id="pl.52.31"></a><var>52.31</var>the behavior for which forms the basis for a commitment under this section or section <br/>
<statute_ref><a id="pl.52.32"></a><var>52.32</var>253B.185
         </statute_ref>; and<br/>
<a id="pl.52.33"></a><var>52.33</var>    (3) "convicted" and "conviction" have the meanings given in section 
         <statute_ref>609.02, <br/>
<a id="pl.52.34"></a><var>52.34</var>subdivision 5
         </statute_ref>, and also include juvenile court adjudications, findings under Minnesota <br/>
<a id="pl.52.35"></a><var>52.35</var>Rules of Criminal Procedure, Rule 
         <statute_ref>20.02</statute_ref>, that the elements of a crime have been proved, <br/>
<a id="pl.53.1"></a><var>53.1</var>and findings in commitment cases under this section or section 
         <statute_ref>253B.185</statute_ref> that an act or <br/>
<a id="pl.53.2"></a><var>53.2</var>acts constituting a crime occurred.<br/>
<a id="pl.53.3"></a><var>53.3</var>    (b) A county attorney who files a petition to commit a person under this section <br/>
<a id="pl.53.4"></a><var>53.4</var>or section 
         <statute_ref>253B.185</statute_ref> shall make a reasonable effort to provide prompt notice of filing <br/>
<a id="pl.53.5"></a><var>53.5</var>the petition to any victim of a crime for which the person was convicted. In addition, <br/>
<a id="pl.53.6"></a><var>53.6</var>the county attorney shall make a reasonable effort to promptly notify the victim of the <br/>
<a id="pl.53.7"></a><var>53.7</var>resolution of the petition.<br/>
<a id="pl.53.8"></a><var>53.8</var>    (c) Before provisionally discharging, discharging, granting pass-eligible status, <br/>
<a id="pl.53.9"></a><var>53.9</var>approving a pass plan, or otherwise permanently or temporarily releasing a person <br/>
<a id="pl.53.10"></a><var>53.10</var>committed under this section or section 
         <statute_ref>253B.185</statute_ref> from a treatment facility, the head of the <br/>
<a id="pl.53.11"></a><var>53.11</var>treatment facility shall make a reasonable effort to notify any victim of a crime for which <br/>
<a id="pl.53.12"></a><var>53.12</var>the person was convicted that the person may be discharged or released and that the victim <br/>
<a id="pl.53.13"></a><var>53.13</var>has a right to submit a written statement regarding decisions of the medical director, <br/>
<a id="pl.53.14"></a><var>53.14</var>special review board, or commissioner with respect to the person. To the extent possible, <br/>
<a id="pl.53.15"></a><var>53.15</var>the notice must be provided at least 14 days before any special review board hearing or <br/>
<a id="pl.53.16"></a><var>53.16</var>before a determination on a pass plan. Notwithstanding section 611A.06, subdivision 4, <br/>
<a id="pl.53.17"></a><var>53.17</var>the commissioner shall provide the judicial appeal panel with victim information in order <br/>
<a id="pl.53.18"></a><var>53.18</var>to comply with the provisions of this section. The judicial appeal panel shall ensure that <br/>
<a id="pl.53.19"></a><var>53.19</var>the data on victims remains private as provided for in section 611A.06, subdivision 4.<br/>
<a id="pl.53.20"></a><var>53.20</var>    (d) This subdivision applies only to victims who have requested notification by <br/>
<a id="pl.53.21"></a><var>53.21</var>contacting, in writing, the county attorney in the county where the conviction for the crime <br/>
<a id="pl.53.22"></a><var>53.22</var>occurred. A county attorney who receives a request for notification under this paragraph <br/>
<a id="pl.53.23"></a><var>53.23</var>shall promptly forward the request to the commissioner of human services.<br/>
<a id="pl.53.24"></a><var>53.24</var>    (e) The rights under this subdivision are in addition to rights available to a victim <br/>
<a id="pl.53.25"></a><var>53.25</var>under chapter 611A. This provision does not give a victim all the rights of a "notified <br/>
<a id="pl.53.26"></a><var>53.26</var>person" or a person "entitled to statutory notice" under subdivision 4a, 4b, or 5.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.53.27"></a><var>53.27</var>    Sec. 10. Minnesota Statutes 2007 Supplement, section 253B.185, subdivision 1b, <br/>
<a id="pl.53.28"></a><var>53.28</var>is amended to read:<br/>
<a id="pl.53.29"></a><var>53.29</var>    Subd. 1b. <b>County attorney access to data.</b> Notwithstanding sections 
         <statute_ref>144.291 <br/>
<a id="pl.53.30"></a><var>53.30</var>to 144.298
         </statute_ref>; 
         <statute_ref>245.467, subdivision 6</statute_ref>; 
         <statute_ref>245.4876, subdivision 7</statute_ref>; 
         <statute_ref>260B.171</statute_ref>; 
         <statute_ref>260B.235, <br/>
<a id="pl.53.31"></a><var>53.31</var>subdivision 8
         </statute_ref>; 
         <statute_ref>260C.171</statute_ref>; and 
         <statute_ref>609.749, subdivision 6</statute_ref>, or any provision of chapter 13 <br/>
<a id="pl.53.32"></a><var>53.32</var>or other state law, prior to filing a petition for commitment as a sexual psychopathic <br/>
<a id="pl.53.33"></a><var>53.33</var>personality or as a sexually dangerous person, and upon notice to the proposed patient, <br/>
<a id="pl.53.34"></a><var>53.34</var>the county attorney or the county attorney's designee may move the court for an order <br/>
<a id="pl.53.35"></a><var>53.35</var>granting access to any records or data, to the extent it relates to the proposed patient, for <br/>
<a id="pl.54.1"></a><var>54.1</var>the purpose of determining whether good cause exists to file a petition and, if a petition <br/>
<a id="pl.54.2"></a><var>54.2</var>is filed, to support the allegations set forth in the petition. <br/>
<a id="pl.54.3"></a><var>54.3</var>    The court may grant the motion if: (1) the Department of Corrections refers the case <br/>
<a id="pl.54.4"></a><var>54.4</var>for commitment as a sexual psychopathic personality or a sexually dangerous person; or <br/>
<a id="pl.54.5"></a><var>54.5</var>(2) upon a showing that the requested category of data or records may be relevant to <br/>
<a id="pl.54.6"></a><var>54.6</var>the determination by the county attorney or designee. The court shall decide a motion <br/>
<a id="pl.54.7"></a><var>54.7</var>under this subdivision within 48 hours after a hearing on the motion. Notice to the <br/>
<a id="pl.54.8"></a><var>54.8</var>proposed patient need not be given upon a showing that such notice may result in harm or <br/>
<a id="pl.54.9"></a><var>54.9</var>harassment of interested persons or potential witnesses.<br/>
<a id="pl.54.10"></a><var>54.10</var>    Notwithstanding any provision of chapter 13 or other state law, a county attorney <br/>
<a id="pl.54.11"></a><var>54.11</var>considering the civil commitment of a person under this section may obtain records and <br/>
<a id="pl.54.12"></a><var>54.12</var>data from the Department of Corrections or any probation or parole agency in this state <br/>
<a id="pl.54.13"></a><var>54.13</var>upon request, without a court order, for the purpose of determining whether good cause <br/>
<a id="pl.54.14"></a><var>54.14</var>exists to file a petition and, if a petition is filed, to support the allegations set forth in the <br/>
<a id="pl.54.15"></a><var>54.15</var>petition. At the time of the request for the records, the county attorney shall provide notice <br/>
<a id="pl.54.16"></a><var>54.16</var>of the request to the person who is the subject of the records.<br/>
<a id="pl.54.17"></a><var>54.17</var>    Data collected pursuant to this subdivision shall retain their original status and, if not <br/>
<a id="pl.54.18"></a><var>54.18</var>public, are inadmissible in any court proceeding unrelated to civil commitment, unless <br/>
<a id="pl.54.19"></a><var>54.19</var>otherwise permitted.<br/>
<a id="pl.54.20"></a><var>54.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.54.21"></a><var>54.21</var>    Sec. 11. Minnesota Statutes 2006, section 253B.185, subdivision 5, is amended to read:<br/>
<a id="pl.54.22"></a><var>54.22</var>    Subd. 5. <b>Financial responsibility.</b> (a) For purposes of this subdivision, "state <br/>
<a id="pl.54.23"></a><var>54.23</var>facility" has the meaning given in section 
         <statute_ref>246.50</statute_ref> and also includes a Department of <br/>
<a id="pl.54.24"></a><var>54.24</var>Corrections facility when the proposed patient is confined in such a facility pursuant to <br/>
<a id="pl.54.25"></a><var>54.25</var>section 253B.045, subdivision 1a. <br/>
<a id="pl.54.26"></a><var>54.26</var>    (b) Notwithstanding sections 
         <statute_ref>246.54</statute_ref>, 
         <statute_ref>253B.045</statute_ref>, and any other law to the contrary, <br/>
<a id="pl.54.27"></a><var>54.27</var>when a petition is filed for commitment under this section pursuant to the notice required <br/>
<a id="pl.54.28"></a><var>54.28</var>in section 
         <statute_ref>244.05, subdivision 7</statute_ref>, the state and county are each responsible for 50 percent of <br/>
<a id="pl.54.29"></a><var>54.29</var>the cost of the person's confinement at a state facility or county jail, prior to commitment. <br/>
<a id="pl.54.30"></a><var>54.30</var>    (c) The county shall submit an invoice to the state court administrator for <br/>
<a id="pl.54.31"></a><var>54.31</var>reimbursement of the state's share of the cost of confinement.<br/>
<a id="pl.54.32"></a><var>54.32</var>    (d) Notwithstanding paragraph (b), the state's responsibility for reimbursement is <br/>
<a id="pl.54.33"></a><var>54.33</var>limited to the amount appropriated for this purpose.<br/>
<a id="pl.54.34"></a><var>54.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.55.1"></a><var>55.1</var>    Sec. 12. Minnesota Statutes 2006, section 253B.185, is amended by adding a <br/>
<a id="pl.55.2"></a><var>55.2</var>subdivision to read:<br/>
<a id="pl.55.3"></a><var>55.3</var>    Subd. 9. <b>Petition for reduction in custody.</b> (a) This subdivision applies only <br/>
<a id="pl.55.4"></a><var>55.4</var>to committed persons as defined in paragraph (b). The procedures in section 253B.18, <br/>
<a id="pl.55.5"></a><var>55.5</var>subdivision 5a, for victim notification and right to submit a statement under section <br/>
<a id="pl.55.6"></a><var>55.6</var>253B.18 apply to petitions filed and reductions in custody recommended under this <br/>
<a id="pl.55.7"></a><var>55.7</var>subdivision.<br/>
<a id="pl.55.8"></a><var>55.8</var>    (b) As used in this subdivision:<br/>
<a id="pl.55.9"></a><var>55.9</var>    (1) "committed person" means an individual committed under this section, or under <br/>
<a id="pl.55.10"></a><var>55.10</var>this section and under section 253B.18, as mentally ill and dangerous. It does not include <br/>
<a id="pl.55.11"></a><var>55.11</var>persons committed only as mentally ill and dangerous under section 253B.18; and<br/>
<a id="pl.55.12"></a><var>55.12</var>    (2) "reduction in custody" means transfer out of a secure treatment facility, a <br/>
<a id="pl.55.13"></a><var>55.13</var>provisional discharge, or a discharge from commitment. A reduction in custody is <br/>
<a id="pl.55.14"></a><var>55.14</var>considered to be a commitment proceeding under section 8.01.<br/>
<a id="pl.55.15"></a><var>55.15</var>    (c) A petition for a reduction in custody or an appeal of a revocation of provisional <br/>
<a id="pl.55.16"></a><var>55.16</var>discharge may be filed by either the committed person or by the head of the treatment <br/>
<a id="pl.55.17"></a><var>55.17</var>facility and must be filed with and considered by the special review board. A committed <br/>
<a id="pl.55.18"></a><var>55.18</var>person may not petition the special review board any sooner than six months following <br/>
<a id="pl.55.19"></a><var>55.19</var>either:<br/>
<a id="pl.55.20"></a><var>55.20</var>    (1) the entry of judgment in the district court of the order for commitment issued <br/>
<a id="pl.55.21"></a><var>55.21</var>under section 253B.18, subdivision 3, or upon the exhaustion of all related appeal rights <br/>
<a id="pl.55.22"></a><var>55.22</var>in state court relating to that order, whichever is later; or<br/>
<a id="pl.55.23"></a><var>55.23</var>    (2) any recommendation of the special review board or order of the judicial appeal <br/>
<a id="pl.55.24"></a><var>55.24</var>panel, or upon the exhaustion of all appeal rights in state court, whichever is later. The <br/>
<a id="pl.55.25"></a><var>55.25</var>medical director may petition at any time. The special review board proceedings are not <br/>
<a id="pl.55.26"></a><var>55.26</var>contested cases as defined in chapter 14.<br/>
<a id="pl.55.27"></a><var>55.27</var>    (d) The special review board shall hold a hearing on each petition before issuing a <br/>
<a id="pl.55.28"></a><var>55.28</var>recommendation under paragraph (f). Fourteen days before the hearing, the committing <br/>
<a id="pl.55.29"></a><var>55.29</var>court, the county attorney of the county of commitment, the designated agency, an <br/>
<a id="pl.55.30"></a><var>55.30</var>interested person, the petitioner and the petitioner's counsel, and the committed person <br/>
<a id="pl.55.31"></a><var>55.31</var>and the committed person's counsel must be given written notice by the commissioner of <br/>
<a id="pl.55.32"></a><var>55.32</var>the time and place of the hearing before the special review board. Only those entitled to <br/>
<a id="pl.55.33"></a><var>55.33</var>statutory notice of the hearing or those administratively required to attend may be present <br/>
<a id="pl.55.34"></a><var>55.34</var>at the hearing. The patient may designate interested persons to receive notice by providing <br/>
<a id="pl.55.35"></a><var>55.35</var>the names and addresses to the commissioner at least 21 days before the hearing.<br/>
<a id="pl.56.1"></a><var>56.1</var>    (e) A person or agency receiving notice that submits documentary evidence to the <br/>
<a id="pl.56.2"></a><var>56.2</var>special review board before the hearing must also provide copies to the committed person, <br/>
<a id="pl.56.3"></a><var>56.3</var>the committed person's counsel, the county attorney of the county of commitment, the case <br/>
<a id="pl.56.4"></a><var>56.4</var>manager, and the commissioner. The special review board must consider any statements <br/>
<a id="pl.56.5"></a><var>56.5</var>received from victims under section 253B.18, subdivision 5a.<br/>
<a id="pl.56.6"></a><var>56.6</var>    (f) Within 30 days of the hearing, the special review board shall issue written <br/>
<a id="pl.56.7"></a><var>56.7</var>findings of fact and shall recommend denial or approval of the petition to the judicial <br/>
<a id="pl.56.8"></a><var>56.8</var>appeal panel established under section 253B.19. The commissioner shall forward the <br/>
<a id="pl.56.9"></a><var>56.9</var>recommendation of the special review board to the judicial appeal panel and to every <br/>
<a id="pl.56.10"></a><var>56.10</var>person entitled to statutory notice. No reduction in custody or reversal of a revocation <br/>
<a id="pl.56.11"></a><var>56.11</var>of provisional discharge recommended by the special review board is effective until it <br/>
<a id="pl.56.12"></a><var>56.12</var>has been reviewed by the judicial appeal panel and until 15 days after an order from the <br/>
<a id="pl.56.13"></a><var>56.13</var>judicial appeal panel affirming, modifying, or denying the recommendation.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.56.14"></a><var>56.14</var>    Sec. 13. Minnesota Statutes 2006, section 253B.19, subdivision 2, is amended to read:<br/>
<a id="pl.56.15"></a><var>56.15</var>    Subd. 2. <b>Petition; hearing.</b> The committed person or the county attorney of the <br/>
<a id="pl.56.16"></a><var>56.16</var>county from which a patient was committed as a person who is mentally ill and dangerous <br/>
<a id="pl.56.17"></a><var>56.17</var>to the public, or as a sexual psychopathic personality or as a sexually dangerous person <br/>
<a id="pl.56.18"></a><var>56.18</var>may petition the appeal panel for a rehearing and reconsideration of a decision by the <br/>
<a id="pl.56.19"></a><var>56.19</var>commissioner. The petition shall be filed with the Supreme Court within 30 days after the <br/>
<a id="pl.56.20"></a><var>56.20</var>decision of the commissioner is signed. The Supreme Court shall refer the petition to the <br/>
<a id="pl.56.21"></a><var>56.21</var>chief judge of the appeal panel. (a) A person committed as mentally ill and dangerous to <br/>
<a id="pl.56.22"></a><var>56.22</var>the public under section 253B.18, or the county attorney of the county from which the <br/>
<a id="pl.56.23"></a><var>56.23</var>person was committed or the county of financial responsibility, may petition the judicial <br/>
<a id="pl.56.24"></a><var>56.24</var>appeal panel for a rehearing and reconsideration of a decision by the commissioner under <br/>
<a id="pl.56.25"></a><var>56.25</var>section 253B.18, subdivision 5. The judicial appeal panel must not consider petitions for <br/>
<a id="pl.56.26"></a><var>56.26</var>relief other than those considered by the commissioner from which the appeal is taken. <br/>
<a id="pl.56.27"></a><var>56.27</var>The petition must be filed with the Supreme Court within 30 days after the decision of <br/>
<a id="pl.56.28"></a><var>56.28</var>the commissioner is signed. The hearing must be held within 45 days of the filing of the <br/>
<a id="pl.56.29"></a><var>56.29</var>petition unless an extension is granted for good cause.<br/>
<a id="pl.56.30"></a><var>56.30</var>    (b) A person committed as a sexual psychopathic personality or as a sexually <br/>
<a id="pl.56.31"></a><var>56.31</var>dangerous person under section 253B.185, or committed as both mentally ill and <br/>
<a id="pl.56.32"></a><var>56.32</var>dangerous to the public under section 253B.18 and as a sexual psychopathic personality or <br/>
<a id="pl.56.33"></a><var>56.33</var>as a sexually dangerous person under section 253B.185; the county attorney of the county <br/>
<a id="pl.56.34"></a><var>56.34</var>from which the person was committed or the county of financial responsibility; or the <br/>
<a id="pl.56.35"></a><var>56.35</var>commissioner may petition the judicial appeal panel for a rehearing and reconsideration <br/>
<a id="pl.57.1"></a><var>57.1</var>of a decision of the special review board under section 253B.185, subdivision 9. The <br/>
<a id="pl.57.2"></a><var>57.2</var>petition must be filed with the Supreme Court within 30 days after the decision is mailed <br/>
<a id="pl.57.3"></a><var>57.3</var>by the commissioner as required in section 253B.185, subdivision 9, paragraph (f). The <br/>
<a id="pl.57.4"></a><var>57.4</var>hearing must be held within 180 days of the filing of the petition unless an extension is <br/>
<a id="pl.57.5"></a><var>57.5</var>granted for good cause. If no party petitions the judicial appeal panel for a rehearing <br/>
<a id="pl.57.6"></a><var>57.6</var>or reconsideration within 30 days, the judicial appeal panel shall either issue an order <br/>
<a id="pl.57.7"></a><var>57.7</var>adopting the recommendations of the special review board or set the matter on for a <br/>
<a id="pl.57.8"></a><var>57.8</var>hearing pursuant to this paragraph.<br/>
<a id="pl.57.9"></a><var>57.9</var>    (c) For an appeal under paragraph (a) or (b), the Supreme Court shall refer the <br/>
<a id="pl.57.10"></a><var>57.10</var>petition to the chief judge of the judicial appeal panel. The chief judge shall notify the <br/>
<a id="pl.57.11"></a><var>57.11</var>patient, the county attorney of the county of commitment, the designated agency, the <br/>
<a id="pl.57.12"></a><var>57.12</var>commissioner, the head of the treatment facility, any interested person, and other persons <br/>
<a id="pl.57.13"></a><var>57.13</var>the chief judge designates, of the time and place of the hearing on the petition. The notice <br/>
<a id="pl.57.14"></a><var>57.14</var>shall be given at least 14 days prior to the date of the hearing. The hearing shall be within <br/>
<a id="pl.57.15"></a><var>57.15</var>45 days of the filing of the petition unless an extension is granted for good cause. <br/>
<a id="pl.57.16"></a><var>57.16</var>    (d) Any person may oppose the petition. The patient, the patient's counsel, the <br/>
<a id="pl.57.17"></a><var>57.17</var>county attorney of the committing county or the county of financial responsibility, and the <br/>
<a id="pl.57.18"></a><var>57.18</var>commissioner shall participate as parties to the proceeding pending before the judicial <br/>
<a id="pl.57.19"></a><var>57.19</var>appeal panel and shall, no later than 20 days before the hearing on the petition, inform the <br/>
<a id="pl.57.20"></a><var>57.20</var>judicial appeal panel and the opposing party in writing whether they support or oppose the <br/>
<a id="pl.57.21"></a><var>57.21</var>petition and provide a summary of facts in support of their position. The judicial appeal <br/>
<a id="pl.57.22"></a><var>57.22</var>panel may appoint examiners and may adjourn the hearing from time to time. It shall hear <br/>
<a id="pl.57.23"></a><var>57.23</var>and receive all relevant testimony and evidence and make a record of all proceedings. The <br/>
<a id="pl.57.24"></a><var>57.24</var>patient, the patient's counsel, and the county attorney of the committing county may <br/>
<a id="pl.57.25"></a><var>57.25</var>or the county of financial responsibility have the right to be present and may present <br/>
<a id="pl.57.26"></a><var>57.26</var>and cross-examine all witnesses and offer a factual and legal basis in support of their <br/>
<a id="pl.57.27"></a><var>57.27</var>positions. The petitioning party bears the burden of going forward with the evidence. The <br/>
<a id="pl.57.28"></a><var>57.28</var>party opposing discharge bears the burden of proof by clear and convincing evidence that <br/>
<a id="pl.57.29"></a><var>57.29</var>the respondent is in need of commitment.<br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.57.30"></a><var>57.30</var>    Sec. 14. Minnesota Statutes 2006, section 253B.19, subdivision 3, is amended to read:<br/>
<a id="pl.57.31"></a><var>57.31</var>    Subd. 3. <b>Decision.</b> A majority of the judicial appeal panel shall rule upon the <br/>
<a id="pl.57.32"></a><var>57.32</var>petition. The panel shall consider the petition de novo. The order of the judicial appeal <br/>
<a id="pl.57.33"></a><var>57.33</var>panel shall supersede the an order of the commissioner in the cases under section 253B.18, <br/>
<a id="pl.57.34"></a><var>57.34</var>subdivision 5. No order of the judicial appeal panel granting a transfer, discharge or <br/>
<a id="pl.57.35"></a><var>57.35</var>provisional discharge shall be made effective sooner than 15 days after it is issued. <br/>
<a id="pl.58.1"></a><var>58.1</var>The panel may not consider petitions for relief other than those considered by the <br/>
<a id="pl.58.2"></a><var>58.2</var>commissioner or special review board from which the appeal is taken. The judicial appeal <br/>
<a id="pl.58.3"></a><var>58.3</var>panel may not grant a transfer or provisional discharge on terms or conditions that were <br/>
<a id="pl.58.4"></a><var>58.4</var>not presented to the commissioner or the special review board.<br/>
<br/>
<a id="bill.2.15.0"></a><a id="pl.58.5"></a><var>58.5</var>    Sec. 15. Minnesota Statutes 2006, section 626.5572, subdivision 21, is amended to <br/>
<a id="pl.58.6"></a><var>58.6</var>read:<br/>
<a id="pl.58.7"></a><var>58.7</var>    Subd. 21. <b>Vulnerable adult.</b> "Vulnerable adult" means any person 18 years of <br/>
<a id="pl.58.8"></a><var>58.8</var>age or older who:<br/>
<a id="pl.58.9"></a><var>58.9</var>    (1) is a resident or inpatient of a facility;<br/>
<a id="pl.58.10"></a><var>58.10</var>    (2) receives services at or from a facility required to be licensed to serve adults <br/>
<a id="pl.58.11"></a><var>58.11</var>under sections 
         <statute_ref>245A.01</statute_ref> to 
         <statute_ref>245A.15</statute_ref>, except that a person receiving outpatient services for <br/>
<a id="pl.58.12"></a><var>58.12</var>treatment of chemical dependency or mental illness, or one who is served in the Minnesota <br/>
<a id="pl.58.13"></a><var>58.13</var>sex offender program on a court-hold order for commitment, or is committed as a sexual <br/>
<a id="pl.58.14"></a><var>58.14</var>psychopathic personality or as a sexually dangerous person under chapter 253B, is not <br/>
<a id="pl.58.15"></a><var>58.15</var>considered a vulnerable adult unless the person meets the requirements of clause (4);<br/>
<a id="pl.58.16"></a><var>58.16</var>    (3) receives services from a home care provider required to be licensed under section <br/>
<statute_ref><a id="pl.58.17"></a><var>58.17</var>144A.46
         </statute_ref>; or from a person or organization that exclusively offers, provides, or arranges <br/>
<a id="pl.58.18"></a><var>58.18</var>for personal care assistant services under the medical assistance program as authorized <br/>
<a id="pl.58.19"></a><var>58.19</var>under sections 
         <statute_ref>256B.04, subdivision 16</statute_ref>, 
         <statute_ref>256B.0625, subdivision 19a</statute_ref>, 
         <statute_ref>256B.0651</statute_ref>, and <br/>
<statute_ref><a id="pl.58.20"></a><var>58.20</var>256B.0653
         </statute_ref> to 
         <statute_ref>256B.0656</statute_ref>; or<br/>
<a id="pl.58.21"></a><var>58.21</var>    (4) regardless of residence or whether any type of service is received, possesses a <br/>
<a id="pl.58.22"></a><var>58.22</var>physical or mental infirmity or other physical, mental, or emotional dysfunction:<br/>
<a id="pl.58.23"></a><var>58.23</var>    (i) that impairs the individual's ability to provide adequately for the individual's <br/>
<a id="pl.58.24"></a><var>58.24</var>own care without assistance, including the provision of food, shelter, clothing, health <br/>
<a id="pl.58.25"></a><var>58.25</var>care, or supervision; and<br/>
<a id="pl.58.26"></a><var>58.26</var>    (ii) because of the dysfunction or infirmity and the need for assistance, the individual <br/>
<a id="pl.58.27"></a><var>58.27</var>has an impaired ability to protect the individual from maltreatment.<br/>
<br/>
<a id="bill.2.16.0"></a><a id="pl.58.28"></a><var>58.28</var>    Sec. 16. <b>MINNESOTA SEX OFFENDER PROGRAM; OPERATING </b><br/>
<a id="pl.58.29"></a><var>58.29</var><b>STANDARDS.</b><br/>
<a id="pl.58.30"></a><var>58.30</var>    The commissioner of human services shall convene a working group of interested <br/>
<a id="pl.58.31"></a><var>58.31</var>parties to develop standards and guidelines for the operations of the Minnesota sex <br/>
<a id="pl.58.32"></a><var>58.32</var>offender program. The standards and guidelines shall include, but not be limited to:<br/>
<a id="pl.58.33"></a><var>58.33</var>    (1) criteria to establish a sex offender treatment advisory board;<br/>
<a id="pl.58.34"></a><var>58.34</var>    (2) criteria to ensure the necessary provision of health and dental care for patients;<br/>
<a id="pl.59.1"></a><var>59.1</var>    (3) criteria to ensure the necessary provision of mental health care; and<br/>
<a id="pl.59.2"></a><var>59.2</var>    (4) fire and safety criteria.<br/>
<a id="pl.59.3"></a><var>59.3</var>    The standards and guidelines shall be developed by the commissioner in consultation <br/>
<a id="pl.59.4"></a><var>59.4</var>with the working group members by February 1, 2009, and presented to the chairs of <br/>
<a id="pl.59.5"></a><var>59.5</var>the policy and finance committees having jurisdiction over the Minnesota sex offender <br/>
<a id="pl.59.6"></a><var>59.6</var>program for review.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.59.9"></a><var>59.9</var>    Section 1. Minnesota Statutes 2007 Supplement, section 256J.49, subdivision 13, <br/>
<a id="pl.59.10"></a><var>59.10</var>is amended to read:<br/>
<a id="pl.59.11"></a><var>59.11</var>    Subd. 13. <b>Work activity.</b> "Work activity" means any activity in a participant's <br/>
<a id="pl.59.12"></a><var>59.12</var>approved employment plan that leads to employment. For purposes of the MFIP program, <br/>
<a id="pl.59.13"></a><var>59.13</var>this includes activities that meet the definition of work activity under the participation <br/>
<a id="pl.59.14"></a><var>59.14</var>requirements of TANF. Work activity includes:<br/>
<a id="pl.59.15"></a><var>59.15</var>    (1) unsubsidized employment, including work study and paid apprenticeships or <br/>
<a id="pl.59.16"></a><var>59.16</var>internships;<br/>
<a id="pl.59.17"></a><var>59.17</var>    (2) subsidized private sector or public sector employment, including grant diversion <br/>
<a id="pl.59.18"></a><var>59.18</var>as specified in section 
         <statute_ref>256J.69</statute_ref>, on-the-job training as specified in section 
         <statute_ref>256J.66</statute_ref>, <br/>
<a id="pl.59.19"></a><var>59.19</var>the self-employment investment demonstration program (SEID) as specified in section <br/>
<a id="pl.59.20"></a><var>59.20</var><statute_ref>256J.65</statute_ref>, paid work experience, and supported work when a wage subsidy is provided; <br/>
<a id="pl.59.21"></a><var>59.21</var>    (3) unpaid work experience, including community service, volunteer work, <br/>
<a id="pl.59.22"></a><var>59.22</var>the community work experience program as specified in section 
         <statute_ref>256J.67</statute_ref>, unpaid <br/>
<a id="pl.59.23"></a><var>59.23</var>apprenticeships or internships, and supported work when a wage subsidy is not provided. <br/>
<a id="pl.59.24"></a><var>59.24</var>Unpaid work experience is only an option if the participant has been unable to obtain or <br/>
<a id="pl.59.25"></a><var>59.25</var>maintain paid employment in the competitive labor market, and no paid work experience <br/>
<a id="pl.59.26"></a><var>59.26</var>programs are available to the participant. Prior to placing a participant in unpaid work, <br/>
<a id="pl.59.27"></a><var>59.27</var>the county must inform the participant that the participant will be notified if a paid <br/>
<a id="pl.59.28"></a><var>59.28</var>work experience or supported work position becomes available. Unless a participant <br/>
<a id="pl.59.29"></a><var>59.29</var>consents in writing to participating participate in unpaid work experience, the participant's <br/>
<a id="pl.59.30"></a><var>59.30</var>employment plan may only include unpaid work experience if including the unpaid work <br/>
<a id="pl.59.31"></a><var>59.31</var>experience in the plan will meet the following criteria:<br/>
<a id="pl.59.32"></a><var>59.32</var>    (i) the unpaid work experience will provide the participant specific skills or <br/>
<a id="pl.59.33"></a><var>59.33</var>experience that cannot be obtained through other work activity options where the <br/>
<a id="pl.59.34"></a><var>59.34</var>participant resides or is willing to reside; and <br/>
<a id="pl.60.1"></a><var>60.1</var>    (ii) the skills or experience gained through the unpaid work experience will result <br/>
<a id="pl.60.2"></a><var>60.2</var>in higher wages for the participant than the participant could earn without the unpaid <br/>
<a id="pl.60.3"></a><var>60.3</var>work experience;<br/>
<a id="pl.60.4"></a><var>60.4</var>    (4) job search including job readiness assistance, job clubs, job placement, <br/>
<a id="pl.60.5"></a><var>60.5</var>job-related counseling, and job retention services;<br/>
<a id="pl.60.6"></a><var>60.6</var>    (5) job readiness education, including English as a second language (ESL) or <br/>
<a id="pl.60.7"></a><var>60.7</var>functional work literacy classes as limited by the provisions of section 
         <statute_ref>256J.531, <br/>
<a id="pl.60.8"></a><var>60.8</var>subdivision 2
         </statute_ref>, general educational development (GED) course work, high school <br/>
<a id="pl.60.9"></a><var>60.9</var>completion, and adult basic education as limited by the provisions of section 
         <statute_ref>256J.531, <br/>
<a id="pl.60.10"></a><var>60.10</var>subdivision 1
         </statute_ref>; <br/>
<a id="pl.60.11"></a><var>60.11</var>    (6) job skills training directly related to employment, including education and <br/>
<a id="pl.60.12"></a><var>60.12</var>training that can reasonably be expected to lead to employment, as limited by the <br/>
<a id="pl.60.13"></a><var>60.13</var>provisions of section 
         <statute_ref>256J.53</statute_ref>; <br/>
<a id="pl.60.14"></a><var>60.14</var>    (7) providing child care services to a participant who is working in a community <br/>
<a id="pl.60.15"></a><var>60.15</var>service program;<br/>
<a id="pl.60.16"></a><var>60.16</var>    (8) activities included in the employment plan that is developed under section <br/>
<statute_ref><a id="pl.60.17"></a><var>60.17</var>256J.521, subdivision 3
         </statute_ref>; and <br/>
<a id="pl.60.18"></a><var>60.18</var>    (9) preemployment activities including chemical and mental health assessments, <br/>
<a id="pl.60.19"></a><var>60.19</var>treatment, and services; learning disabilities services; child protective services; family <br/>
<a id="pl.60.20"></a><var>60.20</var>stabilization services; or other programs designed to enhance employability.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.60.23"></a><var>60.23</var>    Section 1. Laws 2005, First Special Session chapter 4, article 8, section 84, as amended <br/>
<a id="pl.60.24"></a><var>60.24</var>by Laws 2006, chapter 264, section 15, is amended to read:<br/>
<a id="pl.60.25"></a><var>60.25</var>    Sec. 84. <b>SOLE-SOURCE OR SINGLE-PLAN MANAGED CARE </b><br/>
<a id="pl.60.26"></a><var>60.26</var><b>CONTRACT.</b><br/>
<a id="pl.60.27"></a><var>60.27</var>    (a) Notwithstanding Minnesota Statutes, section 
         <statute_ref>256B.692</statute_ref>, subdivision 6, clause <br/>
<a id="pl.60.28"></a><var>60.28</var>(1), paragraph (c), the commissioner of human services shall approve a county-based <br/>
<a id="pl.60.29"></a><var>60.29</var>purchasing health plan proposal, submitted on behalf of Cass, Crow Wing, Morrison, <br/>
<a id="pl.60.30"></a><var>60.30</var>Todd, and Wadena Counties, that requires county-based purchasing on a single-plan basis <br/>
<a id="pl.60.31"></a><var>60.31</var>contract if the implementation of the single-plan purchasing proposal does not limit an <br/>
<a id="pl.60.32"></a><var>60.32</var>enrollee's provider choice or access to services and all other requirements applicable to <br/>
<a id="pl.60.33"></a><var>60.33</var>health plan purchasing are satisfied. The commissioner shall continue single health plan <br/>
<a id="pl.60.34"></a><var>60.34</var>purchasing arrangements with county-based purchasing entities in the service areas in <br/>
<a id="pl.60.35"></a><var>60.35</var>existence on May 1, 2006, including arrangements for which a proposal was submitted by <br/>
<a id="pl.61.1"></a><var>61.1</var>May 1, 2006, on behalf of Cass, Crow Wing, Morrison, Todd, and Wadena Counties, in <br/>
<a id="pl.61.2"></a><var>61.2</var>response to a request for proposals issued by the commissioner. The commissioner shall <br/>
<a id="pl.61.3"></a><var>61.3</var>continue to use single-health plan, county-based purchasing arrangements for medical <br/>
<a id="pl.61.4"></a><var>61.4</var>assistance and general assistance medical care programs and products for the counties <br/>
<a id="pl.61.5"></a><var>61.5</var>that were in single-health plan, county-based purchasing arrangements on March 1, 2008. <br/>
<a id="pl.61.6"></a><var>61.6</var>This paragraph does not require the commissioner to terminate an existing contract with a <br/>
<a id="pl.61.7"></a><var>61.7</var>noncounty-based purchasing plan that had enrollment in a medical assistance program <br/>
<a id="pl.61.8"></a><var>61.8</var>or product in these counties on March 1, 2008. This paragraph expires on December 31, <br/>
<a id="pl.61.9"></a><var>61.9</var>2010, or the effective date of a new contract for medical assistance and general assistance <br/>
<a id="pl.61.10"></a><var>61.10</var>medical care managed care programs entered into at the conclusion of the commissioner's <br/>
<a id="pl.61.11"></a><var>61.11</var>next scheduled reprocurement process for the county-based purchasing entities covered by <br/>
<a id="pl.61.12"></a><var>61.12</var>this paragraph, whichever is later.<br/>
<a id="pl.61.13"></a><var>61.13</var>    (b) The commissioner shall consider, and may approve, contracting on a <br/>
<a id="pl.61.14"></a><var>61.14</var>single-health plan basis with other county-based purchasing plans, or with other qualified <br/>
<a id="pl.61.15"></a><var>61.15</var>health plans that have coordination arrangements with counties, to serve persons with a <br/>
<a id="pl.61.16"></a><var>61.16</var>disability who voluntarily enroll, in order to promote better coordination or integration of <br/>
<a id="pl.61.17"></a><var>61.17</var>health care services, social services and other community-based services, provided that all <br/>
<a id="pl.61.18"></a><var>61.18</var>requirements applicable to health plan purchasing, including those in Minnesota Statutes, <br/>
<a id="pl.61.19"></a><var>61.19</var>section 
         <statute_ref>256B.69, subdivision 23</statute_ref>, are satisfied. By January 15, 2007, the commissioner <br/>
<a id="pl.61.20"></a><var>61.20</var>shall report to the chairs of the appropriate legislative committees in the house and senate <br/>
<a id="pl.61.21"></a><var>61.21</var>an analysis of the advantages and disadvantages of using single-health plan purchasing <br/>
<a id="pl.61.22"></a><var>61.22</var>to serve persons with a disability who are eligible for health care programs. The report <br/>
<a id="pl.61.23"></a><var>61.23</var>shall include consideration of the impact of federal health care programs and policies for <br/>
<a id="pl.61.24"></a><var>61.24</var>persons who are eligible for both federal and state health care programs and shall consider <br/>
<a id="pl.61.25"></a><var>61.25</var>strategies to improve coordination between federal and state health care programs for <br/>
<a id="pl.61.26"></a><var>61.26</var>those persons. Nothing in this paragraph supersedes or modifies the requirements in <br/>
<a id="pl.61.27"></a><var>61.27</var>paragraph (a)."<br/>
<a id="pl.61.28"></a><var>61.28</var>Delete the title and insert:<br/>

<a id="pl.61.31"></a><var>61.31</var>changes to a managed care contract provision; increasing a HMO renewal fee; <br/>
<a id="pl.61.32"></a><var>61.32</var>changing provisions relating to sex offender program; changing a work activity <br/>
<a id="pl.61.33"></a><var>61.33</var>provision under MFIP; requiring a report; appropriating money;amending <br/>
<a id="pl.61.34"></a><var>61.34</var>Minnesota Statutes 2006, sections 13.851, by adding a subdivision; 125A.02, <br/>
<a id="pl.61.35"></a><var>61.35</var>subdivision 1; 144A.45, subdivision 1, by adding a subdivision; 150A.06, by <br/>
<a id="pl.61.36"></a><var>61.36</var>adding a subdivision; 214.40, by adding a subdivision; 246B.02; 253B.045, <br/>
<a id="pl.61.37"></a><var>61.37</var>subdivisions 1, 2, by adding a subdivision; 253B.18, subdivisions 4c, 5, 5a; <br/>
<a id="pl.61.38"></a><var>61.38</var>253B.185, subdivision 5, by adding a subdivision; 253B.19, subdivisions 2, 3; <br/>
<a id="pl.61.39"></a><var>61.39</var>256.01, by adding a subdivision; 256B.056, subdivisions 2, 4a, 11, by adding <br/>
<a id="pl.61.40"></a><var>61.40</var>a subdivision; 256B.057, subdivision 1; 256B.0571, subdivisions 6, 8, 9, 15, <br/>
<a id="pl.62.1"></a><var>62.1</var>by adding a subdivision; 256B.058; 256B.059, subdivisions 1, 1a; 256B.0594; <br/>
<a id="pl.62.2"></a><var>62.2</var>256B.0595, subdivisions 1, 2, 3, 4, by adding subdivisions; 256B.0625, <br/>
<a id="pl.62.3"></a><var>62.3</var>subdivisions 3c, 13g, 13h; 256B.075, subdivision 2; 256B.15, subdivision 4; <br/>
<a id="pl.62.4"></a><var>62.4</var>256B.69, subdivisions 3a, 6, 27, 28; 256B.692, subdivision 7; 524.3-803; <br/>
<a id="pl.62.5"></a><var>62.5</var>626.5572, subdivision 21; Minnesota Statutes 2007 Supplement, sections <br/>
<a id="pl.62.6"></a><var>62.6</var>253B.185, subdivision 1b; 256B.055, subdivision 14; 256B.0625, subdivision <br/>
<a id="pl.62.7"></a><var>62.7</var>49; 256D.03, subdivision 3; 256J.49, subdivision 13; Laws 2005, First Special <br/>
<a id="pl.62.8"></a><var>62.8</var>Session chapter 4, article 8, section 84, as amended; proposing coding for new <br/>
<a id="pl.62.9"></a><var>62.9</var>law in Minnesota Statutes, chapters 145; 246B; repealing Minnesota Statutes <br/>
<a id="pl.62.10"></a><var>62.10</var>2006, section 256B.0571, subdivision 8a; Laws 2003, First Special Session <br/>
<a id="pl.62.11"></a><var>62.11</var>chapter 5, section 11."<br/>
         		We request the adoption of this report and repassage of the bill.House Conferees: (Signed) Thomas Huntley, Erin Murphy, Ron ErhardtSenate Conferees: (Signed) Linda Berglin, Tony Lourey, Paul E. Koering
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<td><a id="pl.63.1"></a><var>63.1</var><br/>
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<td align="left" colspan="3" valign="bottom">We request the adoption of this report and repassage of the bill.<br/>
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<td><a id="pl.63.2"></a><var>63.2</var><br/>
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<td align="left" valign="bottom">House Conferees:<span width="2em"></span>(Signed)<br/>
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<td><a id="pl.63.3"></a><var>63.3</var><br/>
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<td><a id="pl.63.4"></a><var>63.4</var><br/>
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<td align="left" valign="bottom">Thomas Huntley<br/>
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<td align="left" valign="bottom">Erin Murphy<br/>
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<td><a id="pl.63.5"></a><var>63.5</var><br/>
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                     							.....
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<td><a id="pl.63.6"></a><var>63.6</var><br/>
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<td align="left" valign="bottom">Ron Erhardt<br/>
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<td><a id="pl.63.7"></a><var>63.7</var><br/>
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<td align="left" valign="bottom">Senate Conferees:<span width="2em"></span>(Signed)<br/>
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<td><a id="pl.63.8"></a><var>63.8</var><br/>
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                     							.....
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<td><a id="pl.63.9"></a><var>63.9</var><br/>
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<td align="left" valign="bottom">Linda Berglin<br/>
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<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">Tony Lourey<br/>
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<td><a id="pl.63.10"></a><var>63.10</var><br/>
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<td align="left" valign="bottom"><span>
                     							.....
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<td><a id="pl.63.11"></a><var>63.11</var><br/>
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<td align="left" valign="bottom">Paul E. Koering<br/>
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