1.1 	A bill for an act
1.2 	relating to human services; requiring authorization before implementing, 
1.3 	relocating, or closing an enterprise activity; providing for the payment of costs;
1.4 	amending Minnesota Statutes 2006, sections 246.0136, subdivision 1; 246.18, 
1.5 	subdivision 6.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2006, section 246.0136, subdivision 1, is amended to 
1.8 	read:
1.9 		Subdivision 1.Planning for enterprise activities. (a) The commissioner of 
1.10 	human services is directed to study and make recommendations to the legislature on 
1.11 	establishing, relocating, or closing enterprise activities within state-operated services. 
1.12 	Before implementing, relocating, or closing an enterprise activity, the commissioner 
1.13 	must obtain statutory authorization for its implementation, relocation, or closing except 
1.14 	that the commissioner has authority to implement enterprise activities for adult mental 
1.15 	health, adolescent services, and to establish a public group practice without statutory 
1.16 	authorization.
1.17 	(b) Enterprise activities are defined as the range of services, which are delivered 
1.18 	by state employees, needed by people with disabilities and are fully funded by public 
1.19 	or private third-party health insurance or other revenue sources available to clients 
1.20 	that provide reimbursement for the services provided. Enterprise activities within 
1.21 	state-operated services shall specialize in caring for vulnerable people for whom no other 
1.22 	providers are available or for whom state-operated services may be the provider selected 
1.23 	by the payer.
2.1 	(c) In subsequent biennia after an enterprise activity is established within a 
2.2 	state-operated service, the base state appropriation for that state-operated service shall be 
2.3 	reduced proportionate to the size of the enterprise activity.
2.4 	(d) Any funds in a revolving account dedicated to any enterprise activity under 
2.5 	section 246.18, subdivision 6, are available to the commissioner to pay costs incurred by 
2.6 	the commissioner in relocating or closing that or any other enterprise activity.

2.7 	Sec. 2. Minnesota Statutes 2006, section 246.18, subdivision 6, is amended to read:
2.8 		Subd. 6.Collections dedicated. Except for state-operated programs funded 
2.9 	through a direct appropriation from the legislature, any state-operated program or service 
2.10 	established and operated as an enterprise activity shall retain the revenues earned in an 
2.11 	interest-bearing account.
2.12 	When the commissioner determines the intent to transition from a direct 
2.13 	appropriation to enterprise activity for which the commissioner has authority, all 
2.14 	collections for the targeted state-operated service shall be retained and deposited into an 
2.15 	interest-bearing account. At the end of the fiscal year, prior to establishing the enterprise 
2.16 	activity, collections up to the amount of the appropriation for the targeted service shall 
2.17 	be deposited to the general fund. All funds in excess of the amount of the appropriation 
2.18 	will must be retained and used (1) by the enterprise activity for cash flow purposes, or 
2.19 	(2) by the commissioner to pay any costs incurred by the commissioner in relocating or 
2.20 	closing an enterprise activity under section 246.0136, subdivision 1 paragraph (d).
2.21 	These funds must be deposited in the state treasury in a revolving account and funds 
2.22 	in the revolving account are appropriated to the commissioner to operate the services or 
2.23 	pay the costs authorized, and any unexpended balances do not cancel but are available 
2.24 	until spent.