1.1 	A bill for an act
1.2 	relating to human services; amending health care services provisions; 
1.3 	establishing Grieving Parents Act; making changes to general assistance medical 
1.4 	care, medical assistance, and MinnesotaCare; modifying claims, liens, and 
1.5 	treatment of assets; establishing a statewide information exchange; modifying 
1.6 	regulation of certain home care service providers; modifying background study 
1.7 	requirements; modifying food stamp reporting requirements; clarifying coverage 
1.8 	of community health worker education services; authorizing the establishment 
1.9 	of the Minnesota State Industries at Minnesota sex offender program facilities; 
1.10 	providing circumstances, conditions, and procedure under which a person who 
1.11 	is sexually dangerous or has a sexual psychopathic personality is confined in a 
1.12 	correctional facility while being petitioned for civil commitment; providing 
1.13 	for petitions for a reduction in custody for persons committed as sexually 
1.14 	dangerous or a sexual psychopathic personality; requiring a working group 
1.15 	to develop standards and guidelines for the operation of the Minnesota sex 
1.16 	offender program; modifying public assistance provisions; modifying the MFIP 
1.17 	transitional standards; requiring reports;amending Minnesota Statutes 2006, 
1.18 	sections 13.851, by adding a subdivision; 125A.02, subdivision 1; 144A.45, 
1.19 	subdivision 1, by adding a subdivision; 150A.06, by adding a subdivision; 
1.20 	245C.24, subdivision 2; 246B.02; 253B.045, subdivisions 1, 2, by adding a 
1.21 	subdivision; 253B.18, subdivisions 4c, 5, 5a; 253B.185, subdivision 5, by adding 
1.22 	a subdivision; 253B.19, subdivisions 2, 3; 256.01, by adding a subdivision; 
1.23 	256B.055, subdivision 12; 256B.056, subdivisions 2, 4a, 11, by adding a 
1.24 	subdivision; 256B.057, subdivision 1; 256B.0571, subdivisions 6, 8, 9, 15, by 
1.25 	adding a subdivision; 256B.058; 256B.059, subdivisions 1, 1a; 256B.0594; 
1.26 	256B.0595, subdivisions 1, 2, 3, 4, by adding subdivisions; 256B.0625, 
1.27 	subdivisions 3c, 13g, 13h; 256B.075, subdivision 2; 256B.15, subdivision 4; 
1.28 	256B.69, subdivisions 3a, 6, 27; 256B.692, subdivision 7; 256J.24, subdivision 
1.29 	5; 256J.425, subdivision 1; 256J.521, subdivision 4; 256J.54, subdivisions 
1.30 	2, 5; 256J.545; 524.3-803; 626.5572, subdivision 21; Minnesota Statutes 
1.31 	2007 Supplement, sections 253B.185, subdivision 1b; 256.01, subdivision 2; 
1.32 	256B.055, subdivision 14; 256B.0625, subdivision 49; 256D.03, subdivision 3; 
1.33 	256J.20, subdivision 3; 256J.49, subdivision 13; 256J.626, subdivisions 3, 7; 
1.34 	256J.95, subdivision 3; Laws 2005, First Special Session chapter 4, article 8, 
1.35 	section 84, as amended; Laws 2007, chapter 147, article 2, section 21; proposing 
1.36 	coding for new law in Minnesota Statutes, chapters 145; 246B; repealing 
1.37 	Minnesota Statutes 2006, section 256B.0571, subdivision 8a; Laws 2003, First 
1.38 	Special Session chapter 5, section 11.
2.1 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.2 	ARTICLE 1
2.3 	HEALTH CARE

2.4 	Section 1. Minnesota Statutes 2006, section 125A.02, subdivision 1, is amended to 
2.5 	read:
2.6 		Subdivision 1.Child with a disability. Every child who has a hearing impairment, 
2.7 	blindness, visual disability, speech or language impairment, physical disability, other 
2.8 	health impairment, mental disability, emotional/behavioral disorder, specific learning 
2.9 	disability, autism, traumatic brain injury, multiple disabilities, or deaf/blind disability and 
2.10 	needs special instruction and services, as determined by the standards of the commissioner, 
2.11 	is a child with a disability. A licensed physician, an advanced practice nurse, or a licensed 
2.12 	psychologist is qualified to make a diagnosis and determination of attention deficit 
2.13 	disorder or attention deficit hyperactivity disorder for purposes of identifying a child 
2.14 	with a disability. In addition, every child under age three, and at local district discretion 
2.15 	from age three to age seven, who needs special instruction and services, as determined 
2.16 	by the standards of the commissioner, because the child has a substantial delay or has 
2.17 	an identifiable physical or mental condition known to hinder normal development is 
2.18 	a child with a disability.

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

2.20 	Sec. 2. Minnesota Statutes 2006, section 144A.45, subdivision 1, is amended to read:
2.21 		Subdivision 1.Rules. The commissioner shall adopt rules for the regulation of 
2.22 	home care providers pursuant to sections 144A.43 to 144A.47. The rules shall include 
2.23 	the following: 
2.24 	(a) (1) provisions to assure, to the extent possible, the health, safety and well-being, 
2.25 	and appropriate treatment of persons who receive home care services;
2.26 	(b) (2) requirements that home care providers furnish the commissioner with 
2.27 	specified information necessary to implement sections 144A.43 to 144A.47; 
2.28 	(c) (3) standards of training of home care provider personnel, which may vary 
2.29 	according to the nature of the services provided or the health status of the consumer;
2.30 	(d) (4) standards for medication management which may vary according to the 
2.31 	nature of the services provided, the setting in which the services are provided, or the 
2.32 	status of the consumer. Medication management includes the central storage, handling, 
2.33 	distribution, and administration of medications;
3.1 	(e) (5) standards for supervision of home care services requiring supervision by a 
3.2 	registered nurse or other appropriate health care professional which must occur on site 
3.3 	at least every 62 days, or more frequently if indicated by a clinical assessment, and in 
3.4 	accordance with sections 148.171 to 148.285 and rules adopted thereunder, except that, 
3.5 	notwithstanding the provisions of Minnesota Rules, part 4668.0110, subpart 5, item B, 
3.6 	supervision of a person performing home care aide tasks for a class B licensee providing 
3.7 	paraprofessional services must occur only every 180 days, or more frequently if indicated 
3.8 	by a clinical assessment; 
3.9 	(f) (6) standards for client evaluation or assessment which may vary according to the 
3.10 	nature of the services provided or the status of the consumer;
3.11 	(g) (7) requirements for the involvement of a consumer's physician, the 
3.12 	documentation of physicians' orders, if required, and the consumer's treatment plan, and 
3.13 	the maintenance of accurate, current clinical records;
3.14 	(h) (8) the establishment of different classes of licenses for different types of 
3.15 	providers and different standards and requirements for different kinds of home care 
3.16 	services; and
3.17 	(i) (9) operating procedures required to implement the home care bill of rights.

3.18 	Sec. 3. Minnesota Statutes 2006, section 144A.45, is amended by adding a subdivision 
3.19 	to read:
3.20 		Subd. 1a.Home care aide tasks. Notwithstanding the provisions of Minnesota 
3.21 	Rules, part 4668.0110, subpart 1, item E, home care aide tasks also include assisting 
3.22 	toileting, transfers, and ambulation if the client is ambulatory and if the client has no 
3.23 	serious acute illness or infectious disease.

3.24 	Sec. 4. [145.1622] NOTIFICATION OF DISPOSITION OPTIONS REQUIRED.
3.25 		Subdivision 1.Citation. This section may be cited as the "Grieving Parents Act."
3.26 		Subd. 2.Notification required. Hospitals, clinics, and medical facilities having 
3.27 	custody of a fetus following a miscarriage must provide notification to the mother of her 
3.28 	right to arrange for the burial or cremation of the fetus. The notification may also include 
3.29 	other options.
3.30 		Subd. 3.Election of disposition. If, within 24 hours of receiving notification, the 
3.31 	mother elects to arrange for the burial or cremation of the fetus, the hospital, clinic, or 
3.32 	medical facility must release the remains for burial or cremation following all applicable 
3.33 	requirements.

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

4.1 	Sec. 5. Minnesota Statutes 2006, section 150A.06, is amended by adding a subdivision 
4.2 	to read:
4.3 		Subd. 9.Graduates of nonaccredited dental programs. A graduate of a 
4.4 	nonaccredited dental program who successfully completes the clinical licensure 
4.5 	examination and meets all other applicant requirements of the board, shall be licensed to 
4.6 	practice dentistry and granted a limited general dentist license by the board. The board 
4.7 	shall place limitations on the licensee's authority to practice by requiring the licensee to 
4.8 	practice under the general supervision of a Minnesota-licensed dentist approved by the 
4.9 	board. A person licensed under this subdivision must practice for three consecutive years 
4.10 	in Minnesota pursuant to a written agreement, approved by the board, between the licensee 
4.11 	and a Minnesota-licensed dentist who may limit the types of services authorized. At the 
4.12 	conclusion of the three-year period, the board shall grant an unlimited license without 
4.13 	further restrictions if all supervising dentists who had entered into written agreements with 
4.14 	the licensee during any part of the three-year period recommend unlimited licensure, and if 
4.15 	no corrective action or disciplinary action has been taken by the board against the licensee.

4.16 	Sec. 6. Minnesota Statutes 2006, section 256.01, is amended by adding a subdivision 
4.17 	to read:
4.18 		Subd. 27.Statewide health information exchange. (a) The commissioner has the 
4.19 	authority to join and participate as a member in a legal entity developing and operating a 
4.20 	statewide health information exchange that shall meet the following criteria:
4.21 	(1) the legal entity must meet all constitutional and statutory requirements to allow 
4.22 	the commissioner to participate; and 
4.23 	(2) the commissioner or the commissioner's designated representative must have 
4.24 	the right to participate in the governance of the legal entity under the same terms and 
4.25 	conditions and subject to the same requirements as any other member in the legal entity 
4.26 	and in that role shall act to advance state interests and lessen the burdens of government.
4.27 	(b) Notwithstanding chapter 16C, the commissioner may pay the state's prorated 
4.28 	share of development-related expenses of the legal entity retroactively from October 29, 
4.29 	2007, regardless of the date the commissioner joins the legal entity as a member.

4.30 	Sec. 7. Minnesota Statutes 2006, section 256B.055, subdivision 12, is amended to read:
4.31 		Subd. 12.Disabled children. (a) A person is eligible for medical assistance if the 
4.32 	person is under age 19 and qualifies as a disabled individual under United States Code, 
4.33 	title 42, section 1382c(a), and would be eligible for medical assistance under the state 
4.34 	plan if residing in a medical institution, and the child requires a level of care provided in 
5.1 	a hospital, nursing facility, or intermediate care facility for persons with developmental 
5.2 	disabilities, for whom home care is appropriate, provided that the cost to medical 
5.3 	assistance under this section is not more than the amount that medical assistance would pay 
5.4 	for if the child resides in an institution. After the child is determined to be eligible under 
5.5 	this section, the commissioner shall review the child's disability under United States Code, 
5.6 	title 42, section 1382c(a) and level of care defined under this section no more often than 
5.7 	annually and may elect, based on the recommendation of health care professionals under 
5.8 	contract with the state medical review team, to extend the review of disability and level of 
5.9 	care up to a maximum of four years. The commissioner's decision on the frequency of 
5.10 	continuing review of disability and level of care is not subject to administrative appeal 
5.11 	under section 256.045. The county agency shall send a notice of disability review to the 
5.12 	enrollee six months prior to the date the recertification of disability is due. Nothing in this 
5.13 	subdivision shall be construed as affecting other redeterminations of medical assistance 
5.14 	eligibility under this chapter and annual cost-effective reviews under this section.
5.15 	(b) For purposes of this subdivision, "hospital" means an institution as defined 
5.16 	in section 144.696, subdivision 3, 144.55, subdivision 3, or Minnesota Rules, part 
5.17 	4640.3600, and licensed pursuant to sections 144.50 to 144.58. For purposes of this 
5.18 	subdivision, a child requires a level of care provided in a hospital if the child is determined 
5.19 	by the commissioner to need an extensive array of health services, including mental health 
5.20 	services, for an undetermined period of time, whose health condition requires frequent 
5.21 	monitoring and treatment by a health care professional or by a person supervised by a 
5.22 	health care professional, who would reside in a hospital or require frequent hospitalization 
5.23 	if these services were not provided, and the daily care needs are more complex than 
5.24 	a nursing facility level of care.
5.25 	A child with serious emotional disturbance requires a level of care provided in a 
5.26 	hospital if the commissioner determines that the individual requires 24-hour supervision 
5.27 	because the person exhibits recurrent or frequent suicidal or homicidal ideation or 
5.28 	behavior, recurrent or frequent psychosomatic disorders or somatopsychic disorders that 
5.29 	may become life threatening, recurrent or frequent severe socially unacceptable behavior 
5.30 	associated with psychiatric disorder, ongoing and chronic psychosis or severe, ongoing 
5.31 	and chronic developmental problems requiring continuous skilled observation, or severe 
5.32 	disabling symptoms for which office-centered outpatient treatment is not adequate, and 
5.33 	which overall severely impact the individual's ability to function.
5.34 	(c) For purposes of this subdivision, "nursing facility" means a facility which 
5.35 	provides nursing care as defined in section 144A.01, subdivision 5, licensed pursuant to 
5.36 	sections 144A.02 to 144A.10, which is appropriate if a person is in active restorative 
6.1 	treatment; is in need of special treatments provided or supervised by a licensed nurse; or 
6.2 	has unpredictable episodes of active disease processes requiring immediate judgment 
6.3 	by a licensed nurse. For purposes of this subdivision, a child requires the level of care 
6.4 	provided in a nursing facility if the child is determined by the commissioner to meet 
6.5 	the requirements of the preadmission screening assessment document under section 
6.6 	256B.0911 and the home care independent rating document under section 256B.0655, 
6.7 	subdivision 4, clause (3), adjusted to address age-appropriate standards for children age 18 
6.8 	and under, pursuant to section 256B.0655, subdivision 3.
6.9 	(d) For purposes of this subdivision, "intermediate care facility for persons with 
6.10 	developmental disabilities" or "ICF/MR" means a program licensed to provide services to 
6.11 	persons with developmental disabilities under section 252.28, and chapter 245A, and a 
6.12 	physical plant licensed as a supervised living facility under chapter 144, which together 
6.13 	are certified by the Minnesota Department of Health as meeting the standards in Code of 
6.14 	Federal Regulations, title 42, part 483, for an intermediate care facility which provides 
6.15 	services for persons with developmental disabilities who require 24-hour supervision 
6.16 	and active treatment for medical, behavioral, or habilitation needs. For purposes of this 
6.17 	subdivision, a child requires a level of care provided in an ICF/MR if the commissioner 
6.18 	finds that the child has a developmental disability in accordance with section 256B.092, 
6.19 	is in need of a 24-hour plan of care and active treatment similar to persons with 
6.20 	developmental disabilities, and there is a reasonable indication that the child will need 
6.21 	ICF/MR services.
6.22 	(e) For purposes of this subdivision, a person requires the level of care provided 
6.23 	in a nursing facility if the person requires 24-hour monitoring or supervision and a plan 
6.24 	of mental health treatment because of specific symptoms or functional impairments 
6.25 	associated with a serious mental illness or disorder diagnosis, which meet severity criteria 
6.26 	for mental health established by the commissioner and published in March 1997 as 
6.27 	the Minnesota Mental Health Level of Care for Children and Adolescents with Severe 
6.28 	Emotional Disorders.
6.29 	(f) The determination of the level of care needed by the child shall be made by 
6.30 	the commissioner based on information supplied to the commissioner by the parent or 
6.31 	guardian, the child's physician or physicians, and other professionals as requested by the 
6.32 	commissioner. The commissioner shall establish a screening team to conduct the level of 
6.33 	care determinations according to this subdivision.
6.34 	(g) If a child meets the conditions in paragraph (b), (c), (d), or (e), the commissioner 
6.35 	must assess the case to determine whether:
7.1 	(1) the child qualifies as a disabled individual under United States Code, title 42, 
7.2 	section 1382c(a), and would be eligible for medical assistance if residing in a medical 
7.3 	institution; and
7.4 	(2) the cost of medical assistance services for the child, if eligible under this 
7.5 	subdivision, would not be more than the cost to medical assistance if the child resides in a 
7.6 	medical institution to be determined as follows:
7.7 	(i) for a child who requires a level of care provided in an ICF/MR, the cost of 
7.8 	care for the child in an institution shall be determined using the average payment rate 
7.9 	established for the regional treatment centers that are certified as ICF's/MR;
7.10 	(ii) for a child who requires a level of care provided in an inpatient hospital setting 
7.11 	according to paragraph (b), cost-effectiveness shall be determined according to Minnesota 
7.12 	Rules, part 9505.3520, items F and G; and
7.13 	(iii) for a child who requires a level of care provided in a nursing facility according 
7.14 	to paragraph (c) or (e), cost-effectiveness shall be determined according to Minnesota 
7.15 	Rules, part 9505.3040, except that the nursing facility average rate shall be adjusted to 
7.16 	reflect rates which would be paid for children under age 16. The commissioner may 
7.17 	authorize an amount up to the amount medical assistance would pay for a child referred to 
7.18 	the commissioner by the preadmission screening team under section 256B.0911.
7.19 	(h) Children eligible for medical assistance services under section 256B.055, 
7.20 	subdivision 12, as of June 30, 1995, must be screened according to the criteria in this 
7.21 	subdivision prior to January 1, 1996. Children found to be ineligible may not be removed 
7.22 	from the program until January 1, 1996.

7.23 	Sec. 8. Minnesota Statutes 2007 Supplement, section 256B.055, subdivision 14, 
7.24 	is amended to read:
7.25 		Subd. 14.Persons detained by law. (a) Medical assistance may be paid for an 
7.26 	inmate of a correctional facility who is conditionally released as authorized under section 
7.27 	241.26, 244.065, or 631.425, if the individual does not require the security of a public 
7.28 	detention facility and is housed in a halfway house or community correction center, or 
7.29 	under house arrest and monitored by electronic surveillance in a residence approved 
7.30 	by the commissioner of corrections, and if the individual meets the other eligibility 
7.31 	requirements of this chapter.
7.32 	(b) An individual who is enrolled in medical assistance, and who is charged with a 
7.33 	crime and incarcerated for less than 12 months shall be suspended from eligibility at the 
7.34 	time of incarceration until the individual is released. Upon release, medical assistance 
8.1 	eligibility is reinstated without reapplication using a reinstatement process and form, if the 
8.2 	individual is otherwise eligible.
8.3 	(c) An individual, regardless of age, who is considered an inmate of a public 
8.4 	institution as defined in Code of Federal Regulations, title 42, section 435.1009 435.1010, 
8.5 	is not eligible for medical assistance.

8.6 	Sec. 9. Minnesota Statutes 2006, section 256B.056, subdivision 2, is amended to read:
8.7 		Subd. 2.Homestead exclusion and homestead equity limit for institutionalized
8.8 	persons residing in a long-term care facility. (a) The homestead shall be excluded 
8.9 	for the first six calendar months of a person's stay in a long-term care facility and shall 
8.10 	continue to be excluded for as long as the recipient can be reasonably expected to return to 
8.11 	the homestead. For purposes of this subdivision, "reasonably expected to return to the 
8.12 	homestead" means the recipient's attending physician has certified that the expectation 
8.13 	is reasonable, and the recipient can show that the cost of care upon returning home will 
8.14 	be met through medical assistance or other sources. The homestead shall continue to 
8.15 	be excluded for persons residing in a long-term care facility if it is used as a primary 
8.16 	residence by one of the following individuals:
8.17 	(1) the spouse;
8.18 	(2) a child under age 21;
8.19 	(3) a child of any age who is blind or permanently and totally disabled as defined in 
8.20 	the supplemental security income program;
8.21 	(4) a sibling who has equity interest in the home and who resided in the home for at 
8.22 	least one year immediately before the date of the person's admission to the facility; or
8.23 	(5) a child of any age, or, subject to federal approval, a grandchild of any age, who 
8.24 	resided in the home for at least two years immediately before the date of the person's 
8.25 	admission to the facility, and who provided care to the person that permitted the person to 
8.26 	reside at home rather than in an institution.
8.27 	(b) Effective for applications filed on or after July 1, 2006, and for renewals after 
8.28 	July 1, 2006, for persons who first applied for payment of long-term care services on 
8.29 	or after January 2, 2006, the equity interest in the homestead of an individual whose 
8.30 	eligibility for long-term care services is determined on or after January 1, 2006, shall not 
8.31 	exceed $500,000, unless it is the lawful residence of the individual's spouse or child 
8.32 	who is under age 21, blind, or disabled. The amount specified in this paragraph shall be 
8.33 	increased beginning in year 2011, from year to year based on the percentage increase in 
8.34 	the Consumer Price Index for all urban consumers (all items; United States city average), 
8.35 	rounded to the nearest $1,000. This provision may be waived in the case of demonstrated 
9.1 	hardship by a process to be determined by the secretary of health and human services 
9.2 	pursuant to section 6014 of the Deficit Reduction Act of 2005, Public Law 109-171.

9.3 	Sec. 10. Minnesota Statutes 2006, section 256B.056, is amended by adding a 
9.4 	subdivision to read:
9.5 		Subd. 2a.Home equity limit for medical assistance payment of long-term 
9.6 	care services. (a) Effective for requests of medical assistance payment of long-term 
9.7 	care services filed on or after July 1, 2006, and for renewals on or after July 1, 2006, 
9.8 	for persons who received payment of long-term care services under a request filed on 
9.9 	or after January 1, 2006, the equity interest in the home of a person whose eligibility 
9.10 	for long-term care services is determined on or after January 1, 2006, shall not exceed 
9.11 	$500,000, unless it is the lawful residence of the person's spouse or child who is under 
9.12 	age 21, or a child of any age who is blind or permanently and totally disabled as defined 
9.13 	in the Supplemental Security Income program. The amount specified in this paragraph 
9.14 	shall be increased beginning in year 2011, from year to year based on the percentage 
9.15 	increase in the Consumer Price Index for all urban consumers (all items; United States city 
9.16 	average), rounded to the nearest $1,000.
9.17 	(b) For purposes of this subdivision, a "home" means any real or personal property 
9.18 	interest, including an interest in an agricultural homestead as defined under section 
9.19 	273.124, subdivision 1, that, at the time of the request for medical assistance payment of 
9.20 	long-term care services, is the primary dwelling of the person or was the primary dwelling 
9.21 	of the person before receipt of long-term care services began outside of the home.
9.22 	(c) A person denied or terminated from medical assistance payment of long-term 
9.23 	care services because the person's home equity exceeds the home equity limit may seek 
9.24 	a waiver based upon a hardship by filing a written request with the county agency. 
9.25 	Hardship is an imminent threat to the person's health and well-being that is demonstrated 
9.26 	by documentation of no alternatives for payment of long-term care services. The county 
9.27 	agency shall make a decision regarding the written request to waive the home equity limit 
9.28 	within 30 days if all necessary information has been provided. The county agency shall 
9.29 	send the person and the person's representative a written notice of decision on the request 
9.30 	for a demonstrated hardship waiver that also advises the person of appeal rights under the 
9.31 	fair hearing process of section 256.045.

9.32 	Sec. 11. Minnesota Statutes 2006, section 256B.056, subdivision 4a, is amended to 
9.33 	read:
10.1 		Subd. 4a.Asset verification. For purposes of verification, the value of an individual 
10.2 	is not required to make a good faith effort to sell a life estate that is not excluded under 
10.3 	subdivision 2 and the life estate shall be considered deemed not salable unless the owner 
10.4 	of the remainder interest intends to purchase the life estate, or the owner of the life estate 
10.5 	and the owner of the remainder sell the entire property. This subdivision applies only for 
10.6 	the purpose of determining eligibility for medical assistance, and does not apply to the 
10.7 	valuation of assets owned by either the institutional spouse or the community spouse 
10.8 	under section 256B.059, subdivision 2.

10.9 	Sec. 12. Minnesota Statutes 2006, section 256B.056, subdivision 11, is amended to 
10.10 	read:
10.11 		Subd. 11.Treatment of annuities. (a) Any individual applying for or seeking 
10.12 	recertification of eligibility for person requesting medical assistance payment of long-term 
10.13 	care services shall provide a complete description of any interest either the individual
10.14 	person or the individual'sperson's spouse has in annuities on a form designated by the 
10.15 	department. The form shall include a statement that the state becomes a preferred 
10.16 	remainder beneficiary of annuities or similar financial instruments by virtue of the receipt 
10.17 	of medical assistance payment of long-term care services. The individualperson and the 
10.18 	individual'sperson's spouse shall furnish the agency responsible for determining eligibility 
10.19 	with complete current copies of their annuities and related documents for review as part 
10.20 	of the application process on disclosure forms provided by the department as part of 
10.21 	their application and complete the form designating the state as the preferred remainder 
10.22 	beneficiary for each annuity in which the person or the person's spouse has an interest.
10.23 	(b) The disclosure form shall include a statement that the department becomes the 
10.24 	remainder beneficiary under the annuity or similar financial instrument by virtue of the 
10.25 	receipt of medical assistance. The disclosure form department shall include a provide
10.26 	notice to the issuer of the department's right under this section as a preferred remainder 
10.27 	beneficiary under the annuity or similar financial instrument for medical assistance 
10.28 	furnished to the individualperson or the individual'sperson's spouse, and require the 
10.29 	issuer to provide confirmation that a remainder beneficiary designation has been made 
10.30 	and to notify the county agency when there is a change in the amount of the income or 
10.31 	principal being withdrawn from the annuity or other similar financial instrument at the 
10.32 	time of the most recent disclosure required under this section. The individual and the 
10.33 	individual's spouse shall execute separate disclosure forms for each annuity or similar 
10.34 	financial instrument that they are required to disclose under this section and in which they 
10.35 	have an interest provide notice of the issuer's responsibilities as provided in paragraph (c).
11.1 	(c) An issuer of an annuity or similar financial instrument who receives notice 
11.2 	on a disclosure form of the state's right to be named a preferred remainder beneficiary
11.3 	as described in paragraph (b) shall provide confirmation to the requesting agency that 
11.4 	a remainder beneficiary designating the state has been made and a preferred remainder 
11.5 	beneficiary. The issuer shall also notify the county agency when there is a change in the 
11.6 	amount of income or principal being withdrawn from the annuity or other similar financial 
11.7 	instrument or a change in the state's preferred remainder beneficiary designation under 
11.8 	the annuity or other similar financial instrument occurs. The county agency shall provide 
11.9 	the issuer with the name, address, and telephone number of a unit within the department 
11.10 	that the issuer can contact to comply with this paragraph.
11.11 	(d) "Preferred remainder beneficiary" for purposes of this subdivision and sections 
11.12 	256B.0594 and 256B.0595 means the state is a remainder beneficiary in the first position in 
11.13 	an amount equal to the amount of medical assistance paid on behalf of the institutionalized 
11.14 	person, or is a remainder beneficiary in the second position if the institutionalized person 
11.15 	designates and is survived by a remainder beneficiary who is (1) a spouse who does not 
11.16 	reside in a medical institution, (2) a minor child, or (3) a child of any age who is blind or 
11.17 	permanently and totally disabled as defined in the Supplemental Security Income program. 
11.18 	Notwithstanding this paragraph, the state is the remainder beneficiary in the first position 
11.19 	if the spouse or child disposes of the remainder for less than fair market value.
11.20 	(e) For purposes of this subdivision, "institutionalized person" and "long-term care 
11.21 	services" have the meanings given in section 256B.0595, subdivision 1, paragraph (h).
11.22 	(f) For purposes of this subdivision, "medical institution" means a skilled 
11.23 	nursing facility, intermediate care facility, intermediate care facility for persons with 
11.24 	developmental disabilities, nursing facility, or inpatient hospital.

11.25 	Sec. 13. Minnesota Statutes 2006, section 256B.057, subdivision 1, is amended to read:
11.26 		Subdivision 1.Infants and pregnant women. (a)(1) An infant less than one year of 
11.27 	age or a pregnant woman who has written verification of a positive pregnancy test from a 
11.28 	physician or licensed registered nurse is eligible for medical assistance if countable family 
11.29 	income is equal to or less than 275 percent of the federal poverty guideline for the same 
11.30 	family size. A pregnant woman who has written verification of a positive pregnancy test 
11.31 	from a physician or licensed registered nurse is eligible for medical assistance if countable 
11.32 	family income is equal to or less than 200 percent of the federal poverty guideline for the 
11.33 	same family size. For purposes of this subdivision, "countable family income" means the 
11.34 	amount of income considered available using the methodology of the AFDC program 
11.35 	under the state's AFDC plan as of July 16, 1996, as required by the Personal Responsibility 
12.1 	and Work Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 104-193, 
12.2 	except for the earned income disregard and employment deductions.
12.3 	(2) For applications processed within one calendar month prior to the effective date, 
12.4 	eligibility shall be determined by applying the income standards and methodologies in 
12.5 	effect prior to the effective date for any months in the six-month budget period before 
12.6 	that date and the income standards and methodologies in effect on the effective date for 
12.7 	any months in the six-month budget period on or after that date. The income standards 
12.8 	for each month shall be added together and compared to the applicant's total countable 
12.9 	income for the six-month budget period to determine eligibility.
12.10 	(b)(1) [Expired, 1Sp2003 c 14 art 12 s 19]
12.11 	(2) For applications processed within one calendar month prior to July 1, 2003, 
12.12 	eligibility shall be determined by applying the income standards and methodologies in 
12.13 	effect prior to July 1, 2003, for any months in the six-month budget period before July 1, 
12.14 	2003, and the income standards and methodologies in effect on the expiration date for any 
12.15 	months in the six-month budget period on or after July 1, 2003. The income standards 
12.16 	for each month shall be added together and compared to the applicant's total countable 
12.17 	income for the six-month budget period to determine eligibility.
12.18 	(3) An amount equal to the amount of earned income exceeding 275 percent of 
12.19 	the federal poverty guideline, up to a maximum of the amount by which the combined 
12.20 	total of 185 percent of the federal poverty guideline plus the earned income disregards 
12.21 	and deductions allowed under the state's AFDC plan as of July 16, 1996, as required 
12.22 	by the Personal Responsibility and Work Opportunity Act of 1996 (PRWORA), Public 
12.23 	Law 104-193, exceeds 275 percent of the federal poverty guideline will be deducted for 
12.24 	pregnant women and infants less than one year of age.
12.25 	(c) Dependent care and child support paid under court order shall be deducted from 
12.26 	the countable income of pregnant women.
12.27 	(d) An infant born on or after January 1, 1991, to a woman who was eligible for and 
12.28 	receiving medical assistance on the date of the child's birth shall continue to be eligible for 
12.29 	medical assistance without redetermination until the child's first birthday, as long as the 
12.30 	child remains in the woman's household.

12.31 	Sec. 14. Minnesota Statutes 2006, section 256B.0571, subdivision 6, is amended to 
12.32 	read:
12.33 		Subd. 6.Partnership policy. "Partnership policy" means a long-term care insurance 
12.34 	policy that meets the requirements under subdivision 10 and was issued on or after the 
12.35 	effective date of the state plan amendment implementing the partnership program in 
13.1 	Minnesota. Policies that are exchanged or that have riders or endorsements added on or 
13.2 	after the effective date of the state plan amendment as authorized by the commissioner of 
13.3 	commerce qualify as a partnership policy.

13.4 	Sec. 15. Minnesota Statutes 2006, section 256B.0571, subdivision 8, is amended to 
13.5 	read:
13.6 		Subd. 8.Program established. (a) The commissioner, in cooperation with the 
13.7 	commissioner of commerce, shall establish the Minnesota partnership for long-term care 
13.8 	program to provide for the financing of long-term care through a combination of private 
13.9 	insurance and medical assistance.
13.10 	(b) An individual who meets the requirements in this paragraph is eligible to 
13.11 	participate in the partnership program. The individual must:
13.12 	(1) meet one of the following criteria:
13.13 	(i) be a beneficiary of, and a Minnesota resident at the time coverage first became 
13.14 	effective under the a partnership policy;
13.15 	(2) be a beneficiary of a partnership policy that (i) either  is issued on or after the 
13.16 	effective date of the state plan amendment implementing the partnership program in 
13.17 	Minnesota, or (ii) qualifies as a partnership policy under the provisions of subdivision 8a
13.18 	as authorized by the commissioner of commerce under subdivision 6; and or
13.19 	(ii) be a beneficiary of a policy recognized under subdivision 17; and
13.20 	(3) (2)  have exhausted all of the benefits under the partnership policy as described 
13.21 	in this section. Benefits received under a long-term care insurance policy before July 1, 
13.22 	2006, do not count toward the exhaustion of benefits required in this subdivision.

13.23 	Sec. 16. Minnesota Statutes 2006, section 256B.0571, subdivision 9, is amended to 
13.24 	read:
13.25 		Subd. 9.Medical assistance eligibility. (a) Upon applicationrequest for medical 
13.26 	assistance program payment of long-term care services by an individual who meets the 
13.27 	requirements described in subdivision 8, the commissioner shall determine the individual's 
13.28 	eligibility for medical assistance according to paragraphs (b) to (i).
13.29 	(b) After determining assets subject to the asset limit under section 256B.056, 
13.30 	subdivision 3 or 3c, or 256B.057, subdivision 9 or 10, the commissioner shall allow 
13.31 	the individual to designate assets to be protected from recovery under subdivisions 13 
13.32 	and 15 up to the dollar amount of the benefits utilized under the partnership policy. 
13.33 	Designated assets shall be disregarded for purposes of determining eligibility for payment 
13.34 	of long-term care services.
14.1 	(c) The individual shall identify the designated assets and the full fair market value 
14.2 	of those assets and designate them as assets to be protected at the time of initial application 
14.3 	for medical assistance. The full fair market value of real property or interests in real 
14.4 	property shall be based on the most recent full assessed value for property tax purposes 
14.5 	for the real property, unless the individual provides a complete professional appraisal by 
14.6 	a licensed appraiser to establish the full fair market value. The extent of a life estate in 
14.7 	real property shall be determined using the life estate table in the health care program's 
14.8 	manual. Ownership of any asset in joint tenancy shall be treated as ownership as tenants 
14.9 	in common for purposes of its designation as a disregarded asset. The unprotected value 
14.10 	of any protected asset is subject to estate recovery according to subdivisions 13 and 15.
14.11 	(d) The right to designate assets to be protected is personal to the individual and 
14.12 	ends when the individual dies, except as otherwise provided in subdivisions 13 and 
14.13 	15. It does not include the increase in the value of the protected asset and the income, 
14.14 	dividends, or profits from the asset. It may be exercised by the individual or by anyone 
14.15 	with the legal authority to do so on the individual's behalf. It shall not be sold, assigned, 
14.16 	transferred, or given away.
14.17 	(e) If the dollar amount of the benefits utilized under a partnership policy is greater 
14.18 	than the full fair market value of all assets protected at the time of the application for 
14.19 	medical assistance long-term care services, the individual may designate additional assets 
14.20 	that become available during the individual's lifetime for protection under this section. 
14.21 	The individual must make the designation in writing to the county agency no later than 
14.22 	the last date on which the individual must report a change in circumstances to the county 
14.23 	agency, as provided for under the medical assistance program ten days from the date the 
14.24 	designation is requested by the county agency. Any excess used for this purpose shall not 
14.25 	be available to the individual's estate to protect assets in the estate from recovery under 
14.26 	section 256B.15 or 524.3-1202, or otherwise.
14.27 	(f) This section applies only to estate recovery under United States Code, title 42, 
14.28 	section 1396p, subsections (a) and (b), and does not apply to recovery authorized by other 
14.29 	provisions of federal law, including, but not limited to, recovery from trusts under United 
14.30 	States Code, title 42, section 1396p, subsection (d)(4)(A) and (C), or to recovery from 
14.31 	annuities, or similar legal instruments, subject to section 6012, subsections (a) and (b), of 
14.32 	the Deficit Reduction Act of 2005, Public Law 109-171.
14.33 	(g) An individual's protected assets owned by the individual's spouse who applies 
14.34 	for payment of medical assistance long-term care services shall not be protected assets or 
14.35 	disregarded for purposes of eligibility of the individual's spouse solely because they were 
14.36 	protected assets of the individual.
15.1 	(h) Assets designated under this subdivision shall not be subject to penalty under 
15.2 	section 256B.0595.
15.3 	(i) The commissioner shall otherwise determine the individual's eligibility 
15.4 	for payment of long-term care services according to medical assistance eligibility 
15.5 	requirements.

15.6 	Sec. 17. Minnesota Statutes 2006, section 256B.0571, subdivision 15, is amended to 
15.7 	read:
15.8 		Subd. 15.Limitation on liens. (a) An individual's interest in real property shall not 
15.9 	be subject to a medical assistance lien under sections 514.980 to 514.985 or a notice of 
15.10 	potential claim lien arising under section 256B.15 while and to the extent it is protected 
15.11 	under subdivision 9. An individual's interest in real property that exceeds the value 
15.12 	protected under subdivision 9 is subject to a lien for recovery.
15.13 	(b) Medical assistance liens under sections 514.980 to 514.985 or liens arising 
15.14 	under notices of potential claims section 256B.15 against an individual's interests in real 
15.15 	property in the individual's estate that are designated as protected under subdivision 13, 
15.16 	paragraph (b), shall be released to the extent of the dollar value of the protection applied 
15.17 	to the interest.
15.18 	(c) If an interest in real property is protected from a lien for recovery of medical 
15.19 	assistance paid on behalf of the individual under paragraph (a) or (b), no lien for recovery 
15.20 	of medical assistance paid on behalf of that individual shall be filed against the protected 
15.21 	interest in real property after it is distributed to the individual's heirs or devisees.

15.22 	Sec. 18. Minnesota Statutes 2006, section 256B.0571, is amended by adding a 
15.23 	subdivision to read:
15.24 		Subd. 17.Reciprocal agreements. The commissioner may enter into an agreement 
15.25 	with any other state with a partnership program under United States Code, title 42, 
15.26 	section 1396p(b)(1)(C), for reciprocal recognition of qualified long-term care insurance 
15.27 	policies purchased under each state's partnership program. The commissioner shall notify 
15.28 	the secretary of the United States Department of Health and Human Services if the 
15.29 	commissioner declines to enter into a national reciprocal agreement.

15.30 	Sec. 19. Minnesota Statutes 2006, section 256B.058, is amended to read:
15.31 	256B.058 TREATMENT OF INCOME OF INSTITUTIONALIZED SPOUSE.
15.32 		Subdivision 1.Income not available. The income described in subdivisions 2 
15.33 	and 3 shall be deducted from an institutionalized spouse's monthly income and is not 
16.1 	considered available for payment of the monthly costs of an institutionalized person in 
16.2 	the institution spouse after the person has beenthe institutionalized spouse has been
16.3 	determined eligible for medical assistance.
16.4 		Subd. 2.Monthly income allowance for community spouse. (a) For an 
16.5 	institutionalized spouse with a spouse residing in the community, monthly income may be 
16.6 	allocated to the community spouse as a monthly income allowance for the community 
16.7 	spouse. Beginning with the first full calendar month the institutionalized spouse is 
16.8 	in the institution, the monthly income allowance is not considered available to the 
16.9 	institutionalized spouse for monthly payment of costs of care in the institution as long as 
16.10 	the income is made available to the community spouse.
16.11 	(b) The monthly income allowance is the amount by which the community spouse's 
16.12 	monthly maintenance needs allowance under paragraphs (c) and (d) exceeds the amount 
16.13 	of monthly income otherwise available to the community spouse.
16.14 	(c) The community spouse's monthly maintenance needs allowance is the lesser of 
16.15 	$1,500 or 122 percent of the monthly federal poverty guideline for a family of two plus 
16.16 	an excess shelter allowance. The excess shelter allowance is for the amount of shelter 
16.17 	expenses that exceed 30 percent of 122 percent of the federal poverty guideline line for a 
16.18 	family of two. Shelter expenses are the community spouse's expenses for rent, mortgage 
16.19 	payments including principal and interest, taxes, insurance, required maintenance charges 
16.20 	for a cooperative or condominium that is the community spouse's principal residence, 
16.21 	and the standard utility allowance under section 5(e) of the federal Food Stamp Act of 
16.22 	1977. If the community spouse has a required maintenance charge for a cooperative or 
16.23 	condominium, the standard utility allowance must be reduced by the amount of utility 
16.24 	expenses included in the required maintenance charge.
16.25 	If the community or institutionalized spouse establishes that the community spouse 
16.26 	needs income greater than the monthly maintenance needs allowance determined in this 
16.27 	paragraph due to exceptional circumstances resulting in significant financial duress, the 
16.28 	monthly maintenance needs allowance may be increased to an amount that provides 
16.29 	needed additional income.
16.30 	(d) The percentage of the federal poverty guideline used to determine the monthly 
16.31 	maintenance needs allowance in paragraph (c) is increased to 133 percent on July 1, 
16.32 	1991, and to 150 percent on July 1, 1992. Adjustments in the income limits due to annual 
16.33 	changes in the federal poverty guidelines shall be implemented the first day of July 
16.34 	following publication of the annual changes. The $1,500 maximum must be adjusted 
16.35 	January 1, 1990, and every January 1 after that by the same percentage increase in the 
17.1 	Consumer Price Index for all urban consumers (all items; United States city average) 
17.2 	between the two previous Septembers.
17.3 	(e) If a court has entered an order against an institutionalized spouse for monthly 
17.4 	income for support of the community spouse, the community spouse's monthly income 
17.5 	allowance under this subdivision shall not be less than the amount of the monthly income 
17.6 	ordered.
17.7 		Subd. 3.Family allowance. (a) A family allowance determined under paragraph 
17.8 	(b) is not considered available to the institutionalized spouse for monthly payment of costs 
17.9 	of care in the institution.
17.10 	(b) The family allowance is equal to one-third of the amount by which 122 percent 
17.11 	of the monthly federal poverty guideline for a family of two exceeds the monthly income 
17.12 	for that family member.
17.13 	(c) For purposes of this subdivision, the term family member only includes a 
17.14 	minor or dependent child as defined in the Internal Revenue Code, dependent parent, or 
17.15 	dependent sibling of the institutionalized or community spouse if the sibling resides with 
17.16 	the community spouse.
17.17 	(d) The percentage of the federal poverty guideline used to determine the family 
17.18 	allowance in paragraph (b) is increased to 133 percent on July 1, 1991, and to 150 percent 
17.19 	on July 1, 1992. Adjustments in the income limits due to annual changes in the federal 
17.20 	poverty guidelines shall be implemented the first day of July following publication of 
17.21 	the annual changes.
17.22 		Subd. 4.Treatment of income. (a) No income of the community spouse will 
17.23 	be considered available to an eligible institutionalized spouse, beginning the first full 
17.24 	calendar month of institutionalization, except as provided in this subdivision.
17.25 	(b) In determining the income of an institutionalized spouse or community spouse, 
17.26 	after the institutionalized spouse has been determined eligible for medical assistance, 
17.27 	the following rules apply.
17.28 	(1) For income that is not from a trust, availability is determined according to items 
17.29 	(i) to (v), unless the instrument providing the income otherwise specifically provides:
17.30 	(i) if payment is made solely in the name of one spouse, the income is considered 
17.31 	available only to that spouse;
17.32 	(ii) if payment is made in the names of both spouses, one-half of the income is 
17.33 	considered available to each;
17.34 	(iii) if payment is made in the names of one or both spouses together with one or 
17.35 	more other persons, the income is considered available to each spouse according to the 
18.1 	spouse's interest, or one-half of the joint interest is considered available to each spouse 
18.2 	if each spouse's interest is not specified;
18.3 	(iv) if there is no instrument that establishes ownership, one-half of the income is 
18.4 	considered available to each spouse; and
18.5 	(v) either spouse may rebut the determination of availability of income by showing 
18.6 	by a preponderance of the evidence that ownership interests are different than provided 
18.7 	above.
18.8 	(2) For income from a trust, income is considered available to each spouse as 
18.9 	provided in the trust. If the trust does not specify an amount available to either or both 
18.10 	spouses, availability will be determined according to items (i) to (iii):
18.11 	(i) if payment of income is made only to one spouse, the income is considered 
18.12 	available only to that spouse;
18.13 	(ii) if payment of income is made to both spouses, one-half is considered available to 
18.14 	each; and
18.15 	(iii) if payment is made to either or both spouses and one or more other persons, 
18.16 	the income is considered available to each spouse in proportion to each spouse's interest, 
18.17 	or if no such interest is specified, one-half of the joint interest is considered available 
18.18 	to each spouse.

18.19 	Sec. 20. Minnesota Statutes 2006, section 256B.059, subdivision 1, is amended to read:
18.20 		Subdivision 1.Definitions. (a) For purposes of this section and section sections 
18.21 	256B.058 and256B.0595, the terms defined in this subdivision have the meanings given 
18.22 	them. 
18.23 	(b) "Community spouse" means the spouse of an institutionalized spouse.
18.24 	(c) "Spousal share" means one-half of the total value of all assets, to the extent that 
18.25 	either the institutionalized spouse or the community spouse had an ownership interest at 
18.26 	the time of the first continuous period of institutionalization.
18.27 	(d) "Assets otherwise available to the community spouse" means assets individually 
18.28 	or jointly owned by the community spouse, other than assets excluded by subdivision 5, 
18.29 	paragraph (c).
18.30 	(e) "Community spouse asset allowance" is the value of assets that can be transferred 
18.31 	under subdivision 3.
18.32 	(f) "Institutionalized spouse" means a person who is:
18.33 	(1) in a hospital, nursing facility, or intermediate care facility for persons with 
18.34 	developmental disabilities, or receiving home and community-based services under 
19.1 	section 256B.0915or 256B.49, and is expected to remain in the facility or institution or 
19.2 	receive the home and community-based services for at least 30 consecutive days; and 
19.3 	(2) married to a person who is not in a hospital, nursing facility, or intermediate 
19.4 	care facility for persons with developmental disabilities, and is not receiving home and 
19.5 	community-based services under section 256B.0915, 256B.092,  or 256B.49. 
19.6 	(g) "For the sole benefit of" means no other individual or entity can benefit in any 
19.7 	way from the assets or income at the time of a transfer or at any time in the future.
19.8 	(h) "Continuous period of institutionalization" means a 30-consecutive-day period 
19.9 	of time in which a person is expected to stay in a medical or long-term care facility, 
19.10 	or receive home and community-based services that would qualify for coverage under 
19.11 	the elderly waiver (EW) or alternative care (AC) programs. For a stay in a facility, the 
19.12 	30-consecutive-day period begins on the date of entry into a medical or long-term care 
19.13 	facility. For receipt of home and community-based services, the 30-consecutive-day 
19.14 	period begins on the date that the following conditions are met:
19.15 	(1) the person is receiving services that meet the nursing facility level of care 
19.16 	determined by a long-term care consultation;
19.17 	(2) the person has received the long-term care consultation within the past 60 days;
19.18 	(3) the services are paid by the EW program under section 256B.0915 or the AC 
19.19 	program under section 256B.0913 or would qualify for payment under the EW or AC 
19.20 	programs if the person were otherwise eligible for either program, and but for the receipt 
19.21 	of such services the person would have resided in a nursing facility; and
19.22 	(4) the services are provided by a licensed provider qualified to provide home and 
19.23 	community-based services.

19.24 	Sec. 21. Minnesota Statutes 2006, section 256B.059, subdivision 1a, is amended to 
19.25 	read:
19.26 		Subd. 1a.Institutionalized spouse. The provisions of this section apply only 
19.27 	when a spouse is institutionalized for abegins the first continuous period beginningof 
19.28 	institutionalization on or after October 1, 1989.

19.29 	Sec. 22. Minnesota Statutes 2006, section 256B.0594, is amended to read:
19.30 	256B.0594 PAYMENT OF BENEFITS FROM AN ANNUITY.
19.31 	When payment becomes due under an annuity that names the department a 
19.32 	remainder beneficiary as described in section 256B.056, subdivision 11, the issuer shall 
19.33 	request and the department shall, within 45 days after receipt of the request, provide 
19.34 	a written statement of the total amount of the medical assistance paid or confirmation 
20.1 	that any family member designated as a remainder beneficiary meets requirements for 
20.2 	qualification as a beneficiary in the first position. Upon timely receipt of the written 
20.3 	statement of the amount of medical assistance paid, the issuer shall pay the department an 
20.4 	amount equal to the lesser of the amount due the department under the annuity or the total 
20.5 	amount of medical assistance paid on behalf of the individual or the individual's spouse. 
20.6 	Any amounts remaining after the issuer's payment to the department shall be payable 
20.7 	according to the terms of the annuity or similar financial instrument. The county agency 
20.8 	or the department shall provide the issuer with the name, address, and telephone number 
20.9 	of a unit within the department the issuer can contact to comply with this section. The 
20.10 	requirements of section 72A.201, subdivision 4, clause (3), shall not apply to payments 
20.11 	made under this section until the issuer has received final payment information from the 
20.12 	department, if the issuer has notified the beneficiary of the requirements of this section at 
20.13 	the time it initially requests payment information from the department.

20.14 	Sec. 23. Minnesota Statutes 2006, section 256B.0595, subdivision 1, is amended to 
20.15 	read:
20.16 		Subdivision 1.Prohibited transfers. (a) For transfers of assets made on or before 
20.17 	August 10, 1993, if a an institutionalized person or the institutionalized person's spouse 
20.18 	has given away, sold, or disposed of, for less than fair market value, any asset or interest 
20.19 	therein, except assets other than the homestead that are excluded under the supplemental 
20.20 	security program, within 30 months before or any time after the date of institutionalization 
20.21 	if the person has been determined eligible for medical assistance, or within 30 months 
20.22 	before or any time after the date of the first approved application for medical assistance 
20.23 	if the person has not yet been determined eligible for medical assistance, the person is 
20.24 	ineligible for long-term care services for the period of time determined under subdivision 
20.25 	2.
20.26 	(b) Effective for transfers made after August 10, 1993, a an institutionalized person, 
20.27 	a an institutionalized person's spouse, or any person, court, or administrative body with 
20.28 	legal authority to act in place of, on behalf of, at the direction of, or upon the request of the 
20.29 	institutionalized person or institutionalized person's spouse, may not give away, sell, or 
20.30 	dispose of, for less than fair market value, any asset or interest therein, except assets other 
20.31 	than the homestead that are excluded under the supplemental security income program, 
20.32 	for the purpose of establishing or maintaining medical assistance eligibility. This applies 
20.33 	to all transfers, including those made by a community spouse after the month in which 
20.34 	the institutionalized spouse is determined eligible for medical assistance. For purposes of 
20.35 	determining eligibility for long-term care services, any transfer of such assets within 36 
21.1 	months before or any time after an institutionalized person applies forrequests medical 
21.2 	assistance payment of long-term care services, or 36 months before or any time after a 
21.3 	medical assistance recipient becomes an institutionalized person, for less than fair market 
21.4 	value may be considered. Any such transfer is presumed to have been made for the purpose 
21.5 	of establishing or maintaining medical assistance eligibility and the institutionalized
21.6 	person is ineligible for long-term care services for the period of time determined under 
21.7 	subdivision 2, unless the institutionalized person furnishes convincing evidence to 
21.8 	establish that the transaction was exclusively for another purpose, or unless the transfer is 
21.9 	permitted under subdivision 3 or 4.  In the case of payments from a trust or portions of a 
21.10 	trust that are considered transfers of assets under federal law, or in the case of any other 
21.11 	disposal of assets made on or after February 8, 2006, any transfers made within 60 months 
21.12 	before or any time after an institutionalized person applies forrequests medical assistance 
21.13 	payment of long-term care services and within 60 months before or any time after a 
21.14 	medical assistance recipient becomes an institutionalized person, may be considered.
21.15 	(c) This section applies to transfers, for less than fair market value, of income 
21.16 	or assets, including assets that are considered income in the month received, such as 
21.17 	inheritances, court settlements, and retroactive benefit payments or income to which the
21.18 	institutionalized person or the institutionalized person's spouse is entitled but does not 
21.19 	receive due to action by the institutionalized person, the institutionalized person's spouse, 
21.20 	or any person, court, or administrative body with legal authority to act in place of, on 
21.21 	behalf of, at the direction of, or upon the request of the institutionalized person or the
21.22 	institutionalized person's spouse.
21.23 	(d) This section applies to payments for care or personal services provided by a 
21.24 	relative, unless the compensation was stipulated in a notarized, written agreement which 
21.25 	was in existence when the service was performed, the care or services directly benefited 
21.26 	the person, and the payments made represented reasonable compensation for the care 
21.27 	or services provided. A notarized written agreement is not required if payment for the 
21.28 	services was made within 60 days after the service was provided.
21.29 	(e) This section applies to the portion of any asset or interest that a an institutionalized
21.30 	person, a an institutionalized person's spouse, or any person, court, or administrative body 
21.31 	with legal authority to act in place of, on behalf of, at the direction of, or upon the request 
21.32 	of the institutionalized person or the institutionalized person's spouse, transfers to any 
21.33 	annuity that exceeds the value of the benefit likely to be returned to the institutionalized 
21.34 	person or institutionalized person's spouse while alive, based on estimated life expectancy 
21.35 	using the life expectancy tables employed by the supplemental security income program 
21.36 	to determine the value of an agreement for services for life as determined according to the 
22.1 	current actuarial tables published by the Office of the Chief Actuary of the Social Security 
22.2 	Administration. The commissioner may adopt rules reducing life expectancies based on 
22.3 	the need for long-term care. This section applies to an annuity described in this paragraph
22.4 	purchased on or after March 1, 2002, that:
22.5 	(1) is not purchased from an insurance company or financial institution that is 
22.6 	subject to licensing or regulation by the Minnesota Department of Commerce or a similar 
22.7 	regulatory agency of another state;
22.8 	(2) does not pay out principal and interest in equal monthly installments; or
22.9 	(3) does not begin payment at the earliest possible date after annuitization.
22.10 	(f) Effective for transactions, including the purchase of an annuity, occurring on 
22.11 	or after February 8, 2006, the purchase of an annuity by or on behalf of an individual
22.12 	institutionalized person who has applied for or is receiving long-term care services or the 
22.13 	individual's institutionalized person's spouse shall be treated as the disposal of an asset for 
22.14 	less than fair market value unless the department is named as the a preferred remainder 
22.15 	beneficiary in first position for an amount equal to at least the total amount of medical 
22.16 	assistance paid on behalf of the individual or the individual's spouse; or the department 
22.17 	is named as the remainder beneficiary in second position for an amount equal to at least 
22.18 	the total amount of medical assistance paid on behalf of the individual or the individual's 
22.19 	spouse after the individual's community spouse or minor or disabled child and is named as 
22.20 	the remainder beneficiary in the first position if the community spouse or a representative 
22.21 	of the minor or disabled child disposes of the remainder for less than fair market value  as 
22.22 	described in section 256B.056, subdivision 11. Any subsequent change to the designation 
22.23 	of the department as a preferred remainder beneficiary shall result in the annuity being 
22.24 	treated as a disposal of assets for less than fair market value. The amount of such transfer 
22.25 	shall be the maximum amount the individual institutionalized person or the individual's
22.26 	institutionalized person's spouse could receive from the annuity or similar financial 
22.27 	instrument. Any change in the amount of the income or principal being withdrawn 
22.28 	from the annuity or other similar financial instrument at the time of the most recent 
22.29 	disclosure shall be deemed to be a transfer of assets for less than fair market value unless 
22.30 	the individual institutionalized person or the individual's institutionalized person's spouse 
22.31 	demonstrates that the transaction was for fair market value. In the event a distribution 
22.32 	of income or principal has been improperly distributed or disbursed from an annuity or 
22.33 	other retirement planning instrument of an institutionalized person or the institutionalized 
22.34 	person's spouse, a cause of action exists against the individual receiving the improper 
22.35 	distribution for the cost of medical assistance services provided or the amount of the 
22.36 	improper distribution, whichever is less.
23.1 	(g) Effective for transactions, including the purchase of an annuity, occurring on 
23.2 	or after February 8, 2006, the purchase of an annuity by or on behalf of an individual
23.3 	institutionalized person applying for or receiving long-term care services shall be treated 
23.4 	as a disposal of assets for less than fair market value unless it is:
23.5 	(i) an annuity described in subsection (b) or (q) of section 408 of the Internal 
23.6 	Revenue Code of 1986; or 
23.7 	(ii) purchased with proceeds from:
23.8 	(A) an account or trust described in subsection (a), (c), or (p) of section 408 of the 
23.9 	Internal Revenue Code;
23.10 	(B) a simplified employee pension within the meaning of section 408(k) of the 
23.11 	Internal Revenue Code; or
23.12 	(C) a Roth IRA described in section 408A of the Internal Revenue Code; or
23.13 	(iii) an annuity that is irrevocable and nonassignable; is actuarially sound as 
23.14 	determined in accordance with actuarial publications of the Office of the Chief Actuary of 
23.15 	the Social Security Administration; and provides for payments in equal amounts during 
23.16 	the term of the annuity, with no deferral and no balloon payments made.
23.17 	 (h) For purposes of this section, long-term care services include services in a nursing 
23.18 	facility, services that are eligible for payment according to section 256B.0625, subdivision 
23.19 	2, because they are provided in a swing bed, intermediate care facility for persons with 
23.20 	developmental disabilities, and home and community-based services provided pursuant 
23.21 	to sections 256B.0915, 256B.092, and 256B.49. For purposes of this subdivision and 
23.22 	subdivisions 2, 3, and 4, "institutionalized person" includes a person who is an inpatient 
23.23 	in a nursing facility or in a swing bed, or intermediate care facility for persons with 
23.24 	developmental disabilities or who is receiving home and community-based services under 
23.25 	sections 256B.0915, 256B.092, and 256B.49. 
23.26 	(i) This section applies to funds used to purchase a promissory note, loan, or 
23.27 	mortgage unless the note, loan, or mortgage:
23.28 	(1) has a repayment term that is actuarially sound;
23.29 	(2) provides for payments to be made in equal amounts during the term of the loan, 
23.30 	with no deferral and no balloon payments made; and
23.31 	(3) prohibits the cancellation of the balance upon the death of the lender.
23.32 	In the case of a promissory note, loan, or mortgage that does not meet an exception 
23.33 	in clauses (1) to (3), the value of such note, loan, or mortgage shall be the outstanding 
23.34 	balance due as of the date of the individual's applicationinstitutionalized person's request 
23.35 	for medical assistance payment of long-term care services.
24.1 	(j) This section applies to the purchase of a life estate interest in another individual's
24.2 	person's home unless the purchaser resides in the home for a period of at least one year 
24.3 	after the date of purchase.

24.4 	Sec. 24. Minnesota Statutes 2006, section 256B.0595, subdivision 2, is amended to 
24.5 	read:
24.6 		Subd. 2.Period of ineligibility. (a) For any uncompensated transfer occurring on or 
24.7 	before August 10, 1993, the number of months of ineligibility for long-term care services 
24.8 	shall be the lesser of 30 months, or the uncompensated transfer amount divided by the 
24.9 	average medical assistance rate for nursing facility services in the state in effect on the 
24.10 	date of application. The amount used to calculate the average medical assistance payment 
24.11 	rate shall be adjusted each July 1 to reflect payment rates for the previous calendar year. 
24.12 	The period of ineligibility begins with the month in which the assets were transferred. 
24.13 	If the transfer was not reported to the local agency at the time of application, and the 
24.14 	applicant received long-term care services during what would have been the period of 
24.15 	ineligibility if the transfer had been reported, a cause of action exists against the transferee 
24.16 	for the cost of long-term care services provided during the period of ineligibility, or for the 
24.17 	uncompensated amount of the transfer, whichever is less. The action may be brought by 
24.18 	the state or the local agency responsible for providing medical assistance under chapter 
24.19 	256G. The uncompensated transfer amount is the fair market value of the asset at the time 
24.20 	it was given away, sold, or disposed of, less the amount of compensation received.
24.21 	(b) For uncompensated transfers made after August 10, 1993, the number of months 
24.22 	of ineligibility for long-term care services shall be the total uncompensated value of the 
24.23 	resources transferred divided by the average medical assistance rate for nursing facility 
24.24 	services in the state in effect on the date of application. The amount used to calculate the 
24.25 	average medical assistance payment rate shall be adjusted each July 1 to reflect payment 
24.26 	rates for the previous calendar year. The period of ineligibility begins with the first day 
24.27 	of the month after the month in which the assets were transferred except that if one or 
24.28 	more uncompensated transfers are made during a period of ineligibility, the total assets 
24.29 	transferred during the ineligibility period shall be combined and a penalty period calculated 
24.30 	to begin on the first day of the month after the month in which the first uncompensated 
24.31 	transfer was made. If the transfer was reported to the local agency after the date that 
24.32 	advance notice of a period of ineligibility that affects the next month could be provided to 
24.33 	the recipient and the recipient received medical assistance services or the transfer was not 
24.34 	reported to the local agency, and the applicant or recipient received medical assistance 
24.35 	services during what would have been the period of ineligibility if the transfer had been 
25.1 	reported, a cause of action exists against the transferee for the cost of medical assistance
25.2 	that portion of long-term care services provided during the period of ineligibility, or for 
25.3 	the uncompensated amount of the transfer, whichever is less. The action may be brought 
25.4 	by the state or the local agency responsible for providing medical assistance under chapter 
25.5 	256G. The uncompensated transfer amount is the fair market value of the asset at the 
25.6 	time it was given away, sold, or disposed of, less the amount of compensation received. 
25.7 	Effective for transfers made on or after March 1, 1996, involving persons who apply for 
25.8 	medical assistance on or after April 13, 1996, no cause of action exists for a transfer unless:
25.9 	(1) the transferee knew or should have known that the transfer was being made by a 
25.10 	person who was a resident of a long-term care facility or was receiving that level of care in 
25.11 	the community at the time of the transfer;
25.12 	(2) the transferee knew or should have known that the transfer was being made to 
25.13 	assist the person to qualify for or retain medical assistance eligibility; or
25.14 	(3) the transferee actively solicited the transfer with intent to assist the person to 
25.15 	qualify for or retain eligibility for medical assistance.
25.16 	(c) For uncompensated transfers made on or after February 8, 2006, the period 
25.17 	of ineligibility:
25.18 	(1) for uncompensated transfers by or on behalf of individuals receiving medical 
25.19 	assistance payment of long-term care services, begins on the first day of the month 
25.20 	in which following advance notice can be given following of the penalty period, but no 
25.21 	later than the first day of the month in which assets have been transferred for less than 
25.22 	fair market value, that follows three full calendar months from the date of the report 
25.23 	or discovery of the transfer; or 
25.24 	(2) for uncompensated transfers by individuals requesting medical assistance 
25.25 	payment of long-term care services, begins the date on which the individual is eligible 
25.26 	for medical assistance under the Medicaid state plan and would otherwise be receiving 
25.27 	long-term care services based on an approved application for such care but for the 
25.28 	application of the penalty period, whichever is later,; and which does not occur
25.29 	(3) cannot begin during any other period of ineligibility.
25.30 	(d) If a calculation of a penalty period results in a partial month, payments for 
25.31 	long-term care services shall be reduced in an amount equal to the fraction. 
25.32 	(e) In the case of multiple fractional transfers of assets in more than one month for 
25.33 	less than fair market value on or after February 8, 2006, the period of ineligibility is 
25.34 	calculated by treating the total, cumulative, uncompensated value of all assets transferred 
25.35 	during all months on or after February 8, 2006, as one transfer.

26.1 	Sec. 25. Minnesota Statutes 2006, section 256B.0595, subdivision 3, is amended to 
26.2 	read:
26.3 		Subd. 3.Homestead exception to transfer prohibition. (a) An institutionalized 
26.4 	person is not ineligible for long-term care services due to a transfer of assets for less than 
26.5 	fair market value if the asset transferred was a homestead and:
26.6 	(1) title to the homestead was transferred to the individual's:
26.7 	(i) spouse;
26.8 	(ii) child who is under age 21;
26.9 	(iii) blind or permanently and totally disabled child as defined in the supplemental 
26.10 	security income program;
26.11 	(iv) sibling who has equity interest in the home and who was residing in the home 
26.12 	for a period of at least one year immediately before the date of the individual's admission 
26.13 	to the facility; or
26.14 	(v) son or daughter who was residing in the individual's home for a period of at least 
26.15 	two years immediately before the date of the individual's admission to the facility the 
26.16 	individual became an institutionalized person, and who provided care to the individual 
26.17 	that, as certified by the individual's attending physician, permitted the individual to reside 
26.18 	at home rather than receive care in an institution or facility;
26.19 	(2) a satisfactory showing is made that the individual intended to dispose of the 
26.20 	homestead at fair market value or for other valuable consideration; or
26.21 	(3) the local agency grants a waiver of a penalty resulting from a transfer for less 
26.22 	than fair market value because denial of eligibility would cause undue hardship for the 
26.23 	individual, based on imminent threat to the individual's health and well-being. Whenever 
26.24 	an applicant or recipient is denied eligibility because of a transfer for less than fair market 
26.25 	value, the local agency shall notify the applicant or recipient that the applicant or recipient 
26.26 	may request a waiver of the penalty if the denial of eligibility will cause undue hardship. 
26.27 	With the written consent of the individual or the personal representative of the individual, 
26.28 	a long-term care facility in which an individual is residing may file an undue hardship 
26.29 	waiver request, on behalf of the individual who is denied eligibility for long-term care 
26.30 	services on or after July 1, 2006, due to a period of ineligibility resulting from a transfer on 
26.31 	or after February 8, 2006. In evaluating a waiver, the local agency shall take into account 
26.32 	whether the individual was the victim of financial exploitation, whether the individual has 
26.33 	made reasonable efforts to recover the transferred property or resource, and other factors 
26.34 	relevant to a determination of hardship. If the local agency does not approve a hardship 
26.35 	waiver, the local agency shall issue a written notice to the individual stating the reasons 
26.36 	for the denial and the process for appealing the local agency's decision.
27.1 	(b) When a waiver is granted under paragraph (a), clause (3), a cause of action exists 
27.2 	against the person to whom the homestead was transferred for that portion of long-term 
27.3 	care services granted provided  within:
27.4 	(1) 30 months of a transfer made on or before August 10, 1993;
27.5 	(2) 60 months if the homestead was transferred after August 10, 1993, to a trust or 
27.6 	portion of a trust that is considered a transfer of assets under federal law; 
27.7 	(3) 36 months if transferred in any other manner after August 10, 1993, but prior 
27.8 	to February 8, 2006; or
27.9 	(4) 60 months if the homestead was transferred on or after February 8, 2006,
27.10 	or the amount of the uncompensated transfer, whichever is less, together with the 
27.11 	costs incurred due to the action. The action shall be brought by the state unless the 
27.12 	state delegates this responsibility to the local agency responsible for providing medical 
27.13 	assistance under chapter 256G.

27.14 	Sec. 26. Minnesota Statutes 2006, section 256B.0595, subdivision 4, is amended to 
27.15 	read:
27.16 		Subd. 4.Other exceptions to transfer prohibition. An institutionalized person 
27.17 	who has made, or whose spouse has made a transfer prohibited by subdivision 1, is not 
27.18 	ineligible for long-term care services if one of the following conditions applies:
27.19 	(1) the assets were transferred to the individual's spouse or to another for the sole 
27.20 	benefit of the spouse; or
27.21 	(2) the institutionalized spouse, prior to being institutionalized, transferred assets 
27.22 	to a spouse, provided that the spouse to whom the assets were transferred does not then 
27.23 	transfer those assets to another person for less than fair market value. (At the time when 
27.24 	one spouse is institutionalized, assets must be allocated between the spouses as provided 
27.25 	under section 256B.059); or
27.26 	(3) the assets were transferred to the individual's child who is blind or permanently 
27.27 	and totally disabled as determined in the supplemental security income program; or
27.28 	(4) a satisfactory showing is made that the individual intended to dispose of the 
27.29 	assets either at fair market value or for other valuable consideration; or
27.30 	(5) the local agency determines that denial of eligibility for long-term care services 
27.31 	would work an undue hardship and grants a waiver of a penalty resulting from a transfer 
27.32 	for less than fair market value based on an imminent threat to the individual's health 
27.33 	and well-being. Whenever an applicant or recipient is denied eligibility because of a 
27.34 	transfer for less than fair market value, the local agency shall notify the applicant or 
27.35 	recipient that the applicant or recipient may request a waiver of the penalty if the denial of 
28.1 	eligibility will cause undue hardship. With the written consent of the individual or the 
28.2 	personal representative of the individual, a long-term care facility in which an individual 
28.3 	is residing may file an undue hardship waiver request, on behalf of the individual who 
28.4 	is denied eligibility for long-term care services on or after July 1, 2006, due to a period 
28.5 	of ineligibility resulting from a transfer on or after February 8, 2006. In evaluating a 
28.6 	waiver, the local agency shall take into account whether the individual was the victim of 
28.7 	financial exploitation, whether the individual has made reasonable efforts to recover the 
28.8 	transferred property or resource, whether the individual has taken any action to prevent 
28.9 	the designation of the department as a remainder beneficiary on an annuity as described 
28.10 	in section 256B.056, subdivision 11, and other factors relevant to a determination of 
28.11 	hardship. The local agency shall make a determination within 30 days of the receipt of all 
28.12 	necessary information needed to make such a determination. If the local agency does not 
28.13 	approve a hardship waiver, the local agency shall issue a written notice to the individual 
28.14 	stating the reasons for the denial and the process for appealing the local agency's decision. 
28.15 	When a waiver is granted, a cause of action exists against the person to whom the assets 
28.16 	were transferred for that portion of long-term care services granted provided  within:
28.17 	(i) 30 months of a transfer made on or before August 10, 1993;
28.18 	(ii) 60 months of a transfer if the assets were transferred after August 30, 1993, to a 
28.19 	trust or portion of a trust that is considered a transfer of assets under federal law; 
28.20 	(iii) 36 months of a transfer if transferred in any other manner after August 10, 1993, 
28.21 	but prior to February 8, 2006; or
28.22 	(iv) 60 months of any transfer made on or after February 8, 2006,
28.23 	or the amount of the uncompensated transfer, whichever is less, together with the 
28.24 	costs incurred due to the action. The action shall be brought by the state unless the 
28.25 	state delegates this responsibility to the local agency responsible for providing medical 
28.26 	assistance under this chapter; or
28.27 	(6) for transfers occurring after August 10, 1993, the assets were transferred by 
28.28 	the person or person's spouse: (i) into a trust established for the sole benefit of a son or 
28.29 	daughter of any age who is blind or disabled as defined by the Supplemental Security 
28.30 	Income program; or (ii) into a trust established for the sole benefit of an individual who is 
28.31 	under 65 years of age who is disabled as defined by the Supplemental Security Income 
28.32 	program.
28.33 	"For the sole benefit of" has the meaning found in section 256B.059, subdivision 1. 

28.34 	Sec. 27. Minnesota Statutes 2006, section 256B.0595, is amended by adding a 
28.35 	subdivision to read:
29.1 		Subd. 8.Cause of action; transfer prior to death. (a) A cause of action exists 
29.2 	against a transferee who receives assets for less than fair market value, either:
29.3 	(1) from a person who was a recipient of medical assistance and who made an 
29.4 	uncompensated transfer that was known to the county agency but a penalty period could 
29.5 	not be implemented under this section due to the death of the person; or
29.6 	(2) from a person who was a recipient of medical assistance who made an 
29.7 	uncompensated transfer that was not known to the county agency and the transfer was 
29.8 	made with the intent to hinder, delay, or defraud the state or local agency from recovering 
29.9 	as allowed under section 256B.15. In determining intent under this clause consideration 
29.10 	may be given, among other factors, to whether:
29.11 	(i) the transfer was to a family member;
29.12 	(ii) the transferor retained possession or control of the property after the transfer;
29.13 	(iii) the transfer was concealed;
29.14 	(iv) the transfer included the majority of the transferor's assets;
29.15 	(v) the value of the consideration received was not reasonably equivalent to the fair 
29.16 	market value of the property; and
29.17 	(vi) the transfer occurred shortly before the death of the transferor.
29.18 	(b) No cause of action exists under this subdivision unless:
29.19 	(1) the transferee knew or should have known that the transfer was being made by a 
29.20 	person who was receiving medical assistance as described in section 256B.15, subdivision 
29.21 	1, paragraph (b); and 
29.22 	(2) the transferee received the asset without providing a reasonable equivalent fair 
29.23 	market value in exchange for the transfer.
29.24 	(c) The cause of action is for the uncompensated amount of the transfer or the 
29.25 	amount of medical assistance paid on behalf of the person, whichever is less. The 
29.26 	uncompensated transfer amount is the fair market value of the asset at the time it was 
29.27 	given away, sold, or disposed of, less the amount of the compensation received.

29.28 	Sec. 28. Minnesota Statutes 2006, section 256B.0595, is amended by adding a 
29.29 	subdivision to read:
29.30 		Subd. 9.Filing cause of action; limitation. (a) The county of financial 
29.31 	responsibility under chapter 256G may bring a cause of action under any or all of the 
29.32 	following:
29.33 	(1) subdivision 1, paragraph (f);
29.34 	(2) subdivision 2, paragraphs (a) and (b);
29.35 	(3) subdivision 3, paragraph (b);
30.1 	(4) subdivision 4, clause (5); and
30.2 	(5) subdivision 8
30.3 	on behalf of the claimant who must be the commissioner.
30.4 	(b) Notwithstanding any other law to the contrary, a cause of action under 
30.5 	subdivision 2, paragraph (a) or (b), or subdivision 8, must be commenced within six years 
30.6 	of the date the local agency determines that a transfer was made for less than fair market 
30.7 	value. Notwithstanding any other law to the contrary, a cause of action under subdivision 
30.8 	3, paragraph (b), or subdivision 4, clause (5), must be commenced within six years of the 
30.9 	date of approval of a waiver of the penalty period for a transfer for less than fair market 
30.10 	value based on undue hardship.

30.11 	Sec. 29. Minnesota Statutes 2006, section 256B.0625, subdivision 3c, is amended to 
30.12 	read:
30.13 		Subd. 3c.Health Services Policy Committee. The commissioner, after receiving 
30.14 	recommendations from professional physician associations, professional associations 
30.15 	representing licensed nonphysician health care professionals, and consumer groups, shall 
30.16 	establish a 13-member Health Services Policy Committee, which consists of 12 voting 
30.17 	members and one nonvoting member. The Health Services Policy Committee shall advise 
30.18 	the commissioner regarding health services pertaining to the administration of health 
30.19 	care benefits covered under the medical assistance, general assistance medical care, and 
30.20 	MinnesotaCare programs. The Health Services Policy Committee shall meet at least 
30.21 	quarterly. The Health Services Policy Committee shall annually elect a physician chair 
30.22 	from among its members, who shall work directly with the commissioner's medical 
30.23 	director, to establish the agenda for each meeting. The Health Services Policy Committee 
30.24 	shall also recommend criteria for verifying centers of excellence for specific aspects of 
30.25 	medical care where a specific set of combined services, a volume of patients necessary to 
30.26 	maintain a high level of competency, or a specific level of technical capacity is associated 
30.27 	with improved health outcomes.

30.28 	Sec. 30. Minnesota Statutes 2006, section 256B.0625, subdivision 13g, is amended to 
30.29 	read:
30.30 		Subd. 13g.Preferred drug list. (a) The commissioner shall adopt and implement a 
30.31 	preferred drug list by January 1, 2004. The commissioner may enter into a contract with 
30.32 	a vendor or one or more states for the purpose of participating in a multistate preferred 
30.33 	drug list and supplemental rebate program. The commissioner shall ensure that any 
30.34 	contract meets all federal requirements and maximizes federal financial participation. The 
31.1 	commissioner shall publish the preferred drug list annually in the State Register and shall 
31.2 	maintain an accurate and up-to-date list on the agency Web site.
31.3 	(b) The commissioner may add to, delete from, and otherwise modify the preferred 
31.4 	drug list, after consulting with the Formulary Committee and appropriate medical 
31.5 	specialists and providing public notice and the opportunity for public comment.
31.6 	(c) The commissioner shall adopt and administer the preferred drug list as part of the 
31.7 	administration of the supplemental drug rebate program. Reimbursement for prescription 
31.8 	drugs not on the preferred drug list may be subject to prior authorization, unless the drug 
31.9 	manufacturer signs a supplemental rebate contract.
31.10 	(d) For purposes of this subdivision, "preferred drug list" means a list of prescription 
31.11 	drugs within designated therapeutic classes selected by the commissioner, for which prior 
31.12 	authorization based on the identity of the drug or class is not required.
31.13 	(e) The commissioner shall seek any federal waivers or approvals necessary to 
31.14 	implement this subdivision.

31.15 	Sec. 31. Minnesota Statutes 2006, section 256B.0625, subdivision 13h, is amended to 
31.16 	read:
31.17 		Subd. 13h.Medication therapy management services. (a) Medical assistance 
31.18 	and general assistance medical care cover medication therapy management services for 
31.19 	a recipient taking four or more prescriptions to treat or prevent two or more chronic 
31.20 	medical conditions, or a recipient with a drug therapy problem that is identified or prior 
31.21 	authorized by the commissioner that has resulted or is likely to result in significant 
31.22 	nondrug program costs. The commissioner may cover medical therapy management 
31.23 	services under MinnesotaCare if the commissioner determines this is cost-effective. For 
31.24 	purposes of this subdivision, "medication therapy management" means the provision 
31.25 	of the following pharmaceutical care services by a licensed pharmacist to optimize the 
31.26 	therapeutic outcomes of the patient's medications:
31.27 	(1) performing or obtaining necessary assessments of the patient's health status;
31.28 	(2) formulating a medication treatment plan;
31.29 	(3) monitoring and evaluating the patient's response to therapy, including safety 
31.30 	and effectiveness;
31.31 	(4) performing a comprehensive medication review to identify, resolve, and prevent 
31.32 	medication-related problems, including adverse drug events;
31.33 	(5) documenting the care delivered and communicating essential information to 
31.34 	the patient's other primary care providers;
32.1 	(6) providing verbal education and training designed to enhance patient 
32.2 	understanding and appropriate use of the patient's medications;
32.3 	(7) providing information, support services, and resources designed to enhance 
32.4 	patient adherence with the patient's therapeutic regimens; and
32.5 	(8) coordinating and integrating medication therapy management services within the 
32.6 	broader health care management services being provided to the patient.
32.7 	Nothing in this subdivision shall be construed to expand or modify the scope of practice of 
32.8 	the pharmacist as defined in section 151.01, subdivision 27.
32.9 	(b) To be eligible for reimbursement for services under this subdivision, a pharmacist 
32.10 	must meet the following requirements:
32.11 	(1) have a valid license issued under chapter 151;
32.12 	(2) have graduated from an accredited college of pharmacy on or after May 1996, or 
32.13 	completed a structured and comprehensive education program approved by the Board of 
32.14 	Pharmacy and the American Council of Pharmaceutical Education for the provision and 
32.15 	documentation of pharmaceutical care management services that has both clinical and 
32.16 	didactic elements;
32.17 	(3) be practicing in an ambulatory care setting as part of a multidisciplinary team or 
32.18 	have developed a structured patient care process that is offered in a private or semiprivate 
32.19 	patient care area that is separate from the commercial business that also occurs in the 
32.20 	setting, or in home settings, excluding long-term care and group homes, if the service is 
32.21 	ordered by the provider-directed care coordination team; and
32.22 	(4) make use of an electronic patient record system that meets state standards.
32.23 	(c) For purposes of reimbursement for medication therapy management services, 
32.24 	the commissioner may enroll individual pharmacists as medical assistance and general 
32.25 	assistance medical care providers. The commissioner may also establish contact 
32.26 	requirements between the pharmacist and recipient, including limiting the number of 
32.27 	reimbursable consultations per recipient.
32.28 	(d) The commissioner, after receiving recommendations from professional medical 
32.29 	associations, professional pharmacy associations, and consumer groups, shall convene 
32.30 	an 11-member Medication Therapy Management Advisory Committee to advise 
32.31 	the commissioner on the implementation and administration of medication therapy 
32.32 	management services. The committee shall be comprised of: two licensed physicians; 
32.33 	two licensed pharmacists; two consumer representatives; two health plan company 
32.34 	representatives; and three members with expertise in the area of medication therapy 
32.35 	management, who may be licensed physicians or licensed pharmacists. The committee is 
33.1 	governed by section 15.059, except that committee members do not receive compensation 
33.2 	or reimbursement for expenses. The advisory committee expires on June 30, 2007.
33.3 	(e) The commissioner shall evaluate the effect of medication therapy management 
33.4 	on quality of care, patient outcomes, and program costs, and shall include a description 
33.5 	of any savings generated in the medical assistance and general assistance medical care 
33.6 	programs that can be attributable to this coverage. The evaluation shall be submitted to 
33.7 	the legislature by December 15, 2007. The commissioner may contract with a vendor 
33.8 	or an academic institution that has expertise in evaluating health care outcomes for the 
33.9 	purpose of completing the evaluation.

33.10 	Sec. 32. Minnesota Statutes 2007 Supplement, section 256B.0625, subdivision 49, 
33.11 	is amended to read:
33.12 		Subd. 49.Community health worker. (a) Medical assistance covers the care 
33.13 	coordination and patient education services provided by a community health worker if 
33.14 	the community health worker has: 
33.15 	(1) received a certificate from the Minnesota State Colleges and Universities System 
33.16 	approved community health worker curriculum; or
33.17 	(2) at least five years of supervised experience with an enrolled physician, registered 
33.18 	nurse, or advanced practice registered nurse, or dentist, or at least five years of supervised 
33.19 	experience by a certified public health nurse operating under the direct authority of an 
33.20 	enrolled unit of government.
33.21 	Community health workers eligible for payment under clause (2) must complete the 
33.22 	certification program by January 1, 2010, to continue to be eligible for payment.
33.23 	(b) Community health workers must work under the supervision of a medical 
33.24 	assistance enrolled physician, registered nurse, or advanced practice registered nurse, or 
33.25 	dentist, or work under the supervision of a certified public health nurse operating under 
33.26 	the direct authority of an enrolled unit of government.
33.27 	(c) Care coordination and patient education services covered under this subdivision 
33.28 	include, but are not limited to, services relating to oral health and dental care.

33.29 	Sec. 33. Minnesota Statutes 2006, section 256B.075, subdivision 2, is amended to read:
33.30 		Subd. 2.Fee-for-service. (a) The commissioner shall develop and implement 
33.31 	a disease management program for medical assistance and general assistance medical 
33.32 	care recipients who are not enrolled in the prepaid medical assistance or prepaid general 
33.33 	assistance medical care programs and who are receiving services on a fee-for-service basis. 
33.34 	The commissioner may contract with an outside organization to provide these services.
34.1 	(b) The commissioner shall seek any federal approval necessary to implement this 
34.2 	section and to obtain federal matching funds.
34.3 	(c) The commissioner shall develop and implement a pilot intensive care 
34.4 	management program for medical assistance children with complex and chronic medical 
34.5 	issues who are not able to participate in the metro-based U Special Kids program due 
34.6 	to geographic distance.

34.7 	Sec. 34. Minnesota Statutes 2006, section 256B.15, subdivision 4, is amended to read:
34.8 		Subd. 4.Other survivors. (a) If the decedent who was single or the surviving 
34.9 	spouse of a married couple is survived by one of the following persons, a claim exists 
34.10 	against the estate payable first from the value of the nonhomestead property included in 
34.11 	the estate and the personal representative shall make, execute, and deliver to the county 
34.12 	agency a lien against the homestead property in the estate for any unpaid balance of the 
34.13 	claim to the claimant as provided under this section:
34.14 	(a) (1) a sibling who resided in the decedent medical assistance recipient's home at 
34.15 	least one year before the decedent's institutionalization and continuously since the date 
34.16 	of institutionalization; or
34.17 	(b) (2) a son or daughter or a grandchild who resided in the decedent medical 
34.18 	assistance recipient's home for at least two years immediately before the parent's or 
34.19 	grandparent's institutionalization and continuously since the date of institutionalization, 
34.20 	and who establishes by a preponderance of the evidence having provided care to the 
34.21 	parent or grandparent who received medical assistance, that the care was provided before 
34.22 	institutionalization, and that the care permitted the parent or grandparent to reside at 
34.23 	home rather than in an institution.
34.24 	(b) For purposes of this subdivision, "institutionalization" means receiving care: 
34.25 	(1) in a nursing facility or swing bed, or intermediate care facility for persons with 
34.26 	developmental disabilities; or (2) through home and community-based services under 
34.27 	section 256B.0915, 256B.092, or 256B.49.

34.28 	Sec. 35. Minnesota Statutes 2006, section 256B.69, subdivision 3a, is amended to read:
34.29 		Subd. 3a.County authority. (a) The commissioner, when implementing the general 
34.30 	assistance medical care, or medical assistance prepayment program within a county, 
34.31 	must include the county board in the process of development, approval, and issuance of 
34.32 	the request for proposals to provide services to eligible individuals within the proposed 
34.33 	county. County boards must be given reasonable opportunity to make recommendations 
34.34 	regarding the development, issuance, review of responses, and changes needed in the 
35.1 	request for proposals. The commissioner must provide county boards the opportunity to 
35.2 	review each proposal based on the identification of community needs under chapters 145A 
35.3 	and 256E and county advocacy activities. If a county board finds that a proposal does not 
35.4 	address certain community needs, the county board and commissioner shall continue 
35.5 	efforts for improving the proposal and network prior to the approval of the contract. The 
35.6 	county board shall make recommendations regarding the approval of local networks 
35.7 	and their operations to ensure adequate availability and access to covered services. The 
35.8 	provider or health plan must respond directly to county advocates and the state prepaid 
35.9 	medical assistance ombudsperson regarding service delivery and must be accountable to 
35.10 	the state regarding contracts with medical assistance and general assistance medical care 
35.11 	funds. The county board may recommend a maximum number of participating health 
35.12 	plans after considering the size of the enrolling population; ensuring adequate access and 
35.13 	capacity; considering the client and county administrative complexity; and considering 
35.14 	the need to promote the viability of locally developed health plans. The county board 
35.15 	or a single entity representing a group of county boards and the commissioner shall 
35.16 	mutually select health plans for participation at the time of initial implementation of the 
35.17 	prepaid medical assistance program in that county or group of counties and at the time 
35.18 	of contract renewal. The commissioner shall also seek input for contract requirements 
35.19 	from the county or single entity representing a group of county boards at each contract 
35.20 	renewal and incorporate those recommendations into the contract negotiation process. 
35.21 	The commissioner, in conjunction with the county board, shall actively seek to develop 
35.22 	a mutually agreeable timetable prior to the development of the request for proposal, but 
35.23 	counties must agree to initial enrollment beginning on or before January 1, 1999, in 
35.24 	either the prepaid medical assistance and general assistance medical care programs or 
35.25 	county-based purchasing under section 256B.692. At least 90 days before enrollment in 
35.26 	the medical assistance and general assistance medical care prepaid programs begins in 
35.27 	a county in which the prepaid programs have not been established, the commissioner 
35.28 	shall provide a report to the chairs of senate and house committees having jurisdiction 
35.29 	over state health care programs which verifies that the commissioner complied with the 
35.30 	requirements for county involvement that are specified in this subdivision.
35.31 	(b) At the option of the county board, the board may develop contract requirements 
35.32 	related to the achievement of local public health goals to meet the health needs of medical 
35.33 	assistance and general assistance medical care enrollees. These requirements must be 
35.34 	reasonably related to the performance of health plan functions and within the scope of the 
35.35 	medical assistance and general assistance medical care benefit sets. If the county board 
35.36 	and the commissioner mutually agree to such requirements, the department shall include 
36.1 	such requirements in all health plan contracts governing the prepaid medical assistance 
36.2 	and general assistance medical care programs in that county at initial implementation of 
36.3 	the program in that county and at the time of contract renewal. The county board may 
36.4 	participate in the enforcement of the contract provisions related to local public health goals.
36.5 	(c) For counties in which prepaid medical assistance and general assistance medical 
36.6 	care programs have not been established, the commissioner shall not implement those 
36.7 	programs if a county board submits acceptable and timely preliminary and final proposals 
36.8 	under section 256B.692, until county-based purchasing is no longer operational in that 
36.9 	county. For counties in which prepaid medical assistance and general assistance medical 
36.10 	care programs are in existence on or after September 1, 1997, the commissioner must 
36.11 	terminate contracts with health plans according to section 256B.692, subdivision 5, if 
36.12 	the county board submits and the commissioner accepts preliminary and final proposals 
36.13 	according to that subdivision. The commissioner is not required to terminate contracts that 
36.14 	begin on or after September 1, 1997, according to section 256B.692 until two years have 
36.15 	elapsed from the date of initial enrollment. 
36.16 	(d) In the event that a county board or a single entity representing a group of county 
36.17 	boards and the commissioner cannot reach agreement regarding: (i) the selection of 
36.18 	participating health plans in that county; (ii) contract requirements; or (iii) implementation 
36.19 	and enforcement of county requirements including provisions regarding local public 
36.20 	health goals, the commissioner shall resolve all disputes after taking into account the 
36.21 	recommendations of a three-person mediation panel. The panel shall be composed of one 
36.22 	designee of the president of the association of Minnesota counties, one designee of the 
36.23 	commissioner of human services, and one designee of the commissioner of health person 
36.24 	selected jointly by the designee of the commissioner of human services and the designee 
36.25 	of the Association of Minnesota Counties. Within a reasonable period of time before 
36.26 	the hearing the panelists must be provided all documents and information relevant to 
36.27 	the mediation. The parties to the mediation must be given 30 days' notice of a hearing 
36.28 	before the mediation panel.
36.29 	(e) If a county which elects to implement county-based purchasing ceases to 
36.30 	implement county-based purchasing, it is prohibited from assuming the responsibility of 
36.31 	county-based purchasing for a period of five years from the date it discontinues purchasing.
36.32 	(f) Notwithstanding the requirement in this subdivision that a county must agree to 
36.33 	initial enrollment on or before January 1, 1999, the commissioner shall grant a delay in 
36.34 	the implementation of the county-based purchasing authorized in section 256B.692 until 
36.35 	federal waiver authority and approval has been granted, if the county or group of counties 
36.36 	has submitted a preliminary proposal for county-based purchasing by September 1, 1997, 
37.1 	has not already implemented the prepaid medical assistance program before January 1, 
37.2 	1998, and has submitted a written request for the delay to the commissioner by July 
37.3 	1, 1998. In order for the delay to be continued, the county or group of counties must 
37.4 	also submit to the commissioner the following information by December 1, 1998. The 
37.5 	information must: 
37.6 	(1) identify the proposed date of implementation, as determined under section 
37.7 	256B.692, subdivision 5; 
37.8 	(2) include copies of the county board resolutions which demonstrate the continued 
37.9 	commitment to the implementation of county-based purchasing by the proposed date. 
37.10 	County board authorization may remain contingent on the submission of a final proposal 
37.11 	which meets the requirements of section 256B.692, subdivision 5, paragraph (b); 
37.12 	(3) demonstrate actions taken for the establishment of a governance structure 
37.13 	between the participating counties and describe how the fiduciary responsibilities of 
37.14 	county-based purchasing will be allocated between the counties, if more than one county 
37.15 	is involved in the proposal;
37.16 	(4) describe how the risk of a deficit will be managed in the event expenditures are 
37.17 	greater than total capitation payments. This description must identify how any of the 
37.18 	following strategies will be used:
37.19 	(i) risk contracts with licensed health plans;
37.20 	(ii) risk arrangements with providers who are not licensed health plans;
37.21 	(iii) risk arrangements with other licensed insurance entities; and
37.22 	(iv) funding from other county resources;
37.23 	(5) include, if county-based purchasing will not contract with licensed health plans 
37.24 	or provider networks, letters of interest from local providers in at least the categories of 
37.25 	hospital, physician, mental health, and pharmacy which express interest in contracting 
37.26 	for services. These letters must recognize any risk transfer identified in clause (4), item 
37.27 	(ii); and
37.28 	(6) describe the options being considered to obtain the administrative services 
37.29 	required in section 256B.692, subdivision 3, clauses (3) and (5). 
37.30 	(g) For counties which receive a delay under this subdivision, the final proposals 
37.31 	required under section 256B.692, subdivision 5, paragraph (b), must be submitted at 
37.32 	least six months prior to the requested implementation date. Authority to implement 
37.33 	county-based purchasing remains contingent on approval of the final proposal as required 
37.34 	under section 256B.692. 
37.35 	(h) If the commissioner is unable to provide county-specific, individual-level 
37.36 	fee-for-service claims to counties by June 4, 1998, the commissioner shall grant a delay 
38.1 	under paragraph (f) of up to 12 months in the implementation of county-based purchasing, 
38.2 	and shall require implementation not later than January 1, 2000. In order to receive an 
38.3 	extension of the proposed date of implementation under this paragraph, a county or group 
38.4 	of counties must submit a written request for the extension to the commissioner by August 
38.5 	1, 1998, must submit the information required under paragraph (f) by December 1, 1998, 
38.6 	and must submit a final proposal as provided under paragraph (g).
38.7 	(i) Notwithstanding other requirements of this subdivision, the commissioner 
38.8 	shall not require the implementation of the county-based purchasing authorized in 
38.9 	section 256B.692 until six months after federal waiver approval has been obtained for 
38.10 	county-based purchasing, if the county or counties have submitted the final plan as 
38.11 	required in section 256B.692, subdivision 5. The commissioner shall allow the county or 
38.12 	counties which submitted information under section 256B.692, subdivision 5, to submit 
38.13 	supplemental or additional information which was not possible to submit by April 1, 1999. 
38.14 	A county or counties shall continue to submit the required information and substantive 
38.15 	detail necessary to obtain a prompt response and waiver approval. If amendments to 
38.16 	the final plan are necessary due to the terms and conditions of the waiver approval, the 
38.17 	commissioner shall allow the county or group of counties 60 days to make the necessary 
38.18 	amendments to the final plan and shall not require implementation of the county-based 
38.19 	purchasing until six months after the revised final plan has been submitted. 
38.20 	(f) The commissioner shall not require that contractual disputes between 
38.21 	county-based purchasing entities and the commissioner be mediated by a panel that 
38.22 	includes a representative of the Minnesota Council of Health Plans.
38.23 	(g) At the request of a county-purchasing entity, the commissioner shall adopt a 
38.24 	contract reprocurement or renewal schedule under which all counties included in the 
38.25 	entity's service area are reprocured or renewed at the same time.
38.26 	(h) The commissioner shall provide a written report under section 3.195 to the chairs 
38.27 	of the legislative committees having jurisdiction over human services in the senate and the 
38.28 	house of representatives describing in detail the activities undertaken by the commissioner 
38.29 	to ensure full compliance with this section. The report must also provide an explanation 
38.30 	for any decisions of the commissioner not to accept the recommendations of a county or 
38.31 	group of counties required to be consulted under this section. The report must be provided 
38.32 	at least 30 days prior to the effective date of a new or renewed prepaid or managed care 
38.33 	contract in a county.

38.34 	Sec. 36. Minnesota Statutes 2006, section 256B.69, subdivision 6, is amended to read:
39.1 		Subd. 6.Service delivery. (a) Each demonstration provider shall be responsible for 
39.2 	the health care coordination for eligible individuals. Demonstration providers:
39.3 	(1) shall authorize and arrange for the provision of all needed health services 
39.4 	including but not limited to the full range of services listed in sections 256B.02, 
39.5 	subdivision 8, and 256B.0625 in order to ensure appropriate health care is delivered 
39.6 	to enrollees; notwithstanding section 256B.0621, demonstration providers that provide 
39.7 	nursing home and community-based services under this section shall provide relocation 
39.8 	service coordination to enrolled persons age 65 and over; 
39.9 	(2) shall accept the prospective, per capita payment from the commissioner in return 
39.10 	for the provision of comprehensive and coordinated health care services for eligible 
39.11 	individuals enrolled in the program;
39.12 	(3) may contract with other health care and social service practitioners to provide 
39.13 	services to enrollees; and
39.14 	(4) shall institute recipient grievance procedures according to the method established 
39.15 	by the project, utilizing applicable requirements of chapter 62D. Disputes not resolved 
39.16 	through this process shall be appealable to the commissioner as provided in subdivision 11.
39.17 	(b) Demonstration providers must comply with the standards for claims settlement 
39.18 	under section 72A.201, subdivisions 4, 5, 7, and 8, when contracting with other health 
39.19 	care and social service practitioners to provide services to enrollees. A demonstration 
39.20 	provider must pay a clean claim, as defined in Code of Federal Regulations, title 42, 
39.21 	section 447.45(b), within 30 business days of the date of acceptance of the claim. 

39.22 	Sec. 37. Minnesota Statutes 2006, section 256B.69, subdivision 27, is amended to read:
39.23 		Subd. 27.Information for persons with limited English-language proficiency.
 39.24 	Managed care contracts entered into under this section and sections 256D.03, subdivision 
39.25 	4, paragraph (c), and 256L.12 must require demonstration providers to inform enrollees 
39.26 	that upon request the enrollee can obtain a certificate of coverage in the following 
39.27 	languages: Spanish, Hmong, Laotian, Russian, Somali, Vietnamese, or Cambodian. 
39.28 	Upon request, the demonstration provider must provide the enrollee with a certificate of 
39.29 	coverage in the specified language of preference provide language assistance to enrollees 
39.30 	that ensures meaningful access to its programs and services according to Title VI of the 
39.31 	Civil Rights Act and federal regulations adopted under that law or any guidance from the 
39.32 	United States Department of Health and Human Services. 

39.33 	Sec. 38. Minnesota Statutes 2006, section 256B.692, subdivision 7, is amended to read:
40.1 		Subd. 7.Dispute resolution. In the event the commissioner rejects a proposal 
40.2 	under subdivision 6, the county board may request the recommendation of a three-person 
40.3 	mediation panel. The commissioner shall resolve all disputes after taking into account the 
40.4 	recommendations of the mediation panel. The panel shall be composed of one designee of 
40.5 	the president of the Association of Minnesota Counties, one designee of the commissioner 
40.6 	of human services, and one designee of the commissioner of health person selected jointly 
40.7 	by the designee of the commissioner of human services and the designee of the Association 
40.8 	of Minnesota Counties. Within a reasonable period of time before the hearing the panelists 
40.9 	must be provided all documents and information relevant to the mediation. The parties to 
40.10 	the mediation must be given 30 days' notice of a hearing before the mediation panel.

40.11 	Sec. 39. Minnesota Statutes 2007 Supplement, section 256D.03, subdivision 3, is 
40.12 	amended to read:
40.13 		Subd. 3.General assistance medical care; eligibility. (a) General assistance 
40.14 	medical care may be paid for any person who is not eligible for medical assistance under 
40.15 	chapter 256B, including eligibility for medical assistance based on a spenddown of excess 
40.16 	income according to section 256B.056, subdivision 5, or MinnesotaCare as defined in 
40.17 	paragraph (b), except as provided in paragraph (c), and:
40.18 	(1) who is receiving assistance under section 256D.05, except for families with 
40.19 	children who are eligible under Minnesota family investment program (MFIP), or who is 
40.20 	having a payment made on the person's behalf under sections 256I.01 to 256I.06; or
40.21 	(2) who is a resident of Minnesota; and
40.22 	(i) who has gross countable income not in excess of 75 percent of the federal poverty 
40.23 	guidelines for the family size, using a six-month budget period and whose equity in assets 
40.24 	is not in excess of $1,000 per assistance unit. General assistance medical care is not 
40.25 	available for applicants or enrollees who are otherwise eligible for medical assistance but 
40.26 	fail to verify their assets. Enrollees who become eligible for medical assistance shall be 
40.27 	terminated and transferred to medical assistance. Exempt assets, the reduction of excess 
40.28 	assets, and the waiver of excess assets must conform to the medical assistance program in 
40.29 	section 256B.056, subdivision 3, with the following exception: the maximum amount of 
40.30 	undistributed funds in a trust that could be distributed to or on behalf of the beneficiary by 
40.31 	the trustee, assuming the full exercise of the trustee's discretion under the terms of the 
40.32 	trust, must be applied toward the asset maximum;
40.33 	(ii) who has gross countable income above 75 percent of the federal poverty 
40.34 	guidelines but not in excess of 175 percent of the federal poverty guidelines for the 
40.35 	family size, using a six-month budget period, whose equity in assets is not in excess 
41.1 	of the limits in section 256B.056, subdivision 3c, and who applies during an inpatient 
41.2 	hospitalization; or
41.3 	(iii) the commissioner shall adjust the income standards under this section each July 
41.4 	1 by the annual update of the federal poverty guidelines following publication by the 
41.5 	United States Department of Health and Human Services.
41.6 	(b) Effective for applications and renewals processed on or after September 1, 2006, 
41.7 	general assistance medical care may not be paid for applicants or recipients who are adults 
41.8 	with dependent children under 21 whose gross family income is equal to or less than 275 
41.9 	percent of the federal poverty guidelines who are not described in paragraph (e).
41.10 	(c) Effective for applications and renewals processed on or after September 1, 2006, 
41.11 	general assistance medical care may be paid for applicants and recipients who meet all 
41.12 	eligibility requirements of paragraph (a), clause (2), item (i), for a temporary period 
41.13 	beginning the date of application. Immediately following approval of general assistance 
41.14 	medical care, enrollees shall be enrolled in MinnesotaCare under section 256L.04, 
41.15 	subdivision 7, with covered services as provided in section 256L.03 for the rest of the 
41.16 	six-month general assistance medical care eligibility period, until their six-month renewal. 
41.17 	(d) To be eligible for general assistance medical care following enrollment in 
41.18 	MinnesotaCare as required by paragraph (c), an individual must complete a new 
41.19 	application.
41.20 	(e) Applicants and recipients eligible under paragraph (a), clause (1); who, are 
41.21 	exempt from the MinnesotaCare enrollment requirements in this subdivision if they:
41.22 	(1) have applied for and are awaiting a determination of blindness or disability by 
41.23 	the state medical review team or a determination of eligibility for Supplemental Security 
41.24 	Income or Social Security Disability Insurance by the Social Security Administration; who
41.25 	(2) fail to meet the requirements of section 256L.09, subdivision 2; who
41.26 	(3) are homeless as defined by United States Code, title 42, section 11301, et seq.; 
41.27 	who
41.28 	(4)  are classified as end-stage renal disease beneficiaries in the Medicare program; 
41.29 	who
41.30 	(5) are enrolled in private health care coverage as defined in section 256B.02, 
41.31 	subdivision 9; who
41.32 	(6) are eligible under paragraph (j); or who
41.33 	(7) receive treatment funded pursuant to section 254B.02are exempt from the 
41.34 	MinnesotaCare enrollment requirements of this subdivision; or
41.35 	(8) reside in the Minnesota sex offender program defined in chapter 246B.
42.1 	(f) For applications received on or after October 1, 2003, eligibility may begin no 
42.2 	earlier than the date of application. For individuals eligible under paragraph (a), clause 
42.3 	(2), item (i), a redetermination of eligibility must occur every 12 months. Individuals are 
42.4 	eligible under paragraph (a), clause (2), item (ii), only during inpatient hospitalization but 
42.5 	may reapply if there is a subsequent period of inpatient hospitalization.
42.6 	(g) Beginning September 1, 2006, Minnesota health care program applications and 
42.7 	renewals completed by recipients and applicants who are persons described in paragraph 
42.8 	(c) and submitted to the county agency shall be determined for MinnesotaCare eligibility 
42.9 	by the county agency. If all other eligibility requirements of this subdivision are met, 
42.10 	eligibility for general assistance medical care shall be available in any month during which 
42.11 	MinnesotaCare enrollment is pending. Upon notification of eligibility for MinnesotaCare, 
42.12 	notice of termination for eligibility for general assistance medical care shall be sent to 
42.13 	an applicant or recipient. If all other eligibility requirements of this subdivision are 
42.14 	met, eligibility for general assistance medical care shall be available until enrollment in 
42.15 	MinnesotaCare subject to the provisions of paragraphs (c), (e), and (f).
42.16 	(h) The date of an initial Minnesota health care program application necessary to 
42.17 	begin a determination of eligibility shall be the date the applicant has provided a name, 
42.18 	address, and Social Security number, signed and dated, to the county agency or the 
42.19 	Department of Human Services. If the applicant is unable to provide a name, address, 
42.20 	Social Security number, and signature when health care is delivered due to a medical 
42.21 	condition or disability, a health care provider may act on an applicant's behalf to establish 
42.22 	the date of an initial Minnesota health care program application by providing the county 
42.23 	agency or Department of Human Services with provider identification and a temporary 
42.24 	unique identifier for the applicant. The applicant must complete the remainder of the 
42.25 	application and provide necessary verification before eligibility can be determined. The 
42.26 	county agency must assist the applicant in obtaining verification if necessary.
42.27 	(i) County agencies are authorized to use all automated databases containing 
42.28 	information regarding recipients' or applicants' income in order to determine eligibility for 
42.29 	general assistance medical care or MinnesotaCare. Such use shall be considered sufficient 
42.30 	in order to determine eligibility and premium payments by the county agency.
42.31 	(j) General assistance medical care is not available for a person in a correctional 
42.32 	facility unless the person is detained by law for less than one year in a county correctional 
42.33 	or detention facility as a person accused or convicted of a crime, or admitted as an 
42.34 	inpatient to a hospital on a criminal hold order, and the person is a recipient of general 
42.35 	assistance medical care at the time the person is detained by law or admitted on a criminal 
43.1 	hold order and as long as the person continues to meet other eligibility requirements 
43.2 	of this subdivision.
43.3 	(k) General assistance medical care is not available for applicants or recipients who 
43.4 	do not cooperate with the county agency to meet the requirements of medical assistance.
43.5 	(l) In determining the amount of assets of an individual eligible under paragraph 
43.6 	(a), clause (2), item (i), there shall be included any asset or interest in an asset, including 
43.7 	an asset excluded under paragraph (a), that was given away, sold, or disposed of for 
43.8 	less than fair market value within the 60 months preceding application for general 
43.9 	assistance medical care or during the period of eligibility. Any transfer described in this 
43.10 	paragraph shall be presumed to have been for the purpose of establishing eligibility for 
43.11 	general assistance medical care, unless the individual furnishes convincing evidence to 
43.12 	establish that the transaction was exclusively for another purpose. For purposes of this 
43.13 	paragraph, the value of the asset or interest shall be the fair market value at the time it 
43.14 	was given away, sold, or disposed of, less the amount of compensation received. For any 
43.15 	uncompensated transfer, the number of months of ineligibility, including partial months, 
43.16 	shall be calculated by dividing the uncompensated transfer amount by the average monthly 
43.17 	per person payment made by the medical assistance program to skilled nursing facilities 
43.18 	for the previous calendar year. The individual shall remain ineligible until this fixed period 
43.19 	has expired. The period of ineligibility may exceed 30 months, and a reapplication for 
43.20 	benefits after 30 months from the date of the transfer shall not result in eligibility unless 
43.21 	and until the period of ineligibility has expired. The period of ineligibility begins in the 
43.22 	month the transfer was reported to the county agency, or if the transfer was not reported, 
43.23 	the month in which the county agency discovered the transfer, whichever comes first. For 
43.24 	applicants, the period of ineligibility begins on the date of the first approved application.
43.25 	(m) When determining eligibility for any state benefits under this subdivision, 
43.26 	the income and resources of all noncitizens shall be deemed to include their sponsor's 
43.27 	income and resources as defined in the Personal Responsibility and Work Opportunity 
43.28 	Reconciliation Act of 1996, title IV, Public Law 104-193, sections 421 and 422, and 
43.29 	subsequently set out in federal rules.
43.30 	(n) Undocumented noncitizens and nonimmigrants are ineligible for general 
43.31 	assistance medical care. For purposes of this subdivision, a nonimmigrant is an individual 
43.32 	in one or more of the classes listed in United States Code, title 8, section 1101(a)(15), and 
43.33 	an undocumented noncitizen is an individual who resides in the United States without the 
43.34 	approval or acquiescence of the United States Citizenship and Immigration Services.
44.1 	(o) Notwithstanding any other provision of law, a noncitizen who is ineligible for 
44.2 	medical assistance due to the deeming of a sponsor's income and resources, is ineligible 
44.3 	for general assistance medical care.
44.4 	(p) Effective July 1, 2003, general assistance medical care emergency services end.

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

44.6 	Sec. 40. Minnesota Statutes 2006, section 524.3-803, is amended to read:
44.7 	524.3-803 LIMITATIONS ON PRESENTATION OF CLAIMS.
44.8 	(a) All claims as defined in section 524.1-201(6), against a decedent's estate which 
44.9 	arose before the death of the decedent, including claims of the state and any subdivision 
44.10 	thereof, whether due or to become due, absolute or contingent, liquidated or unliquidated, 
44.11 	if not barred earlier by other statute of limitations, are barred against the estate, the personal 
44.12 	representative, and the heirs and devisees of the decedent, unless presented as follows: 
44.13 	(1) in the case of a creditor who is only entitled, under the United States Constitution 
44.14 	and under the Minnesota Constitution, to notice by publication under section 524.3-801, 
44.15 	within four months after the date of the court administrator's notice to creditors which 
44.16 	is subsequently published pursuant to section 524.3-801; 
44.17 	(2) in the case of a creditor who was served with notice under section 524.3-801(c), 
44.18 	within the later to expire of four months after the date of the first publication of notice to 
44.19 	creditors or one month after the service; 
44.20 	(3) within the later to expire of one year after the decedent's death, or one year after 
44.21 	June 16, 1989, whether or not notice to creditors has been published or served under 
44.22 	section 524.3-801, provided, however, that in the case of a decedent who died before June 
44.23 	16, 1989, no claim which was then barred by any provision of law may be deemed to have 
44.24 	been revived by the amendment of this section. Claims authorized by section 246.53, 
44.25 	256B.15, or 256D.16 must not be barred after one year as provided in this clause.
44.26 	(b) All claims against a decedent's estate which arise at or after the death of the 
44.27 	decedent, including claims of the state and any subdivision thereof, whether due or to 
44.28 	become due, absolute or contingent, liquidated or unliquidated, are barred against the 
44.29 	estate, the personal representative, and the heirs and devisees of the decedent, unless 
44.30 	presented as follows:
44.31 	(1) a claim based on a contract with the personal representative, within four months 
44.32 	after performance by the personal representative is due;
44.33 	(2) any other claim, within four months after it arises.
44.34 	(c) Nothing in this section affects or prevents:
45.1 	(1) any proceeding to enforce any mortgage, pledge, or other lien upon property 
45.2 	of the estate;
45.3 	(2) any proceeding to establish liability of the decedent or the personal representative 
45.4 	for which there is protection by liability insurance, to the limits of the insurance protection 
45.5 	only;
45.6 	(3) the presentment and payment at any time within one year after the decedent's 
45.7 	death of any claim arising before the death of the decedent that is referred to in section 
45.8 	524.3-715, clause (18), although the same may be otherwise barred under this section; or 
45.9 	(4) the presentment and payment at any time before a petition is filed in compliance 
45.10 	with section 524.3-1001 or 524.3-1002 or a closing statement is filed under section 
45.11 	524.3-1003, of: 
45.12 	(i) any claim arising after the death of the decedent that is referred to in section 
45.13 	524.3-715, clause (18), although the same may be otherwise barred hereunder; 
45.14 	(ii) any other claim, including claims subject to clause (3), which would otherwise be 
45.15 	barred hereunder, upon allowance by the court upon petition of the personal representative 
45.16 	or the claimant for cause shown on notice and hearing as the court may direct.

45.17 	Sec. 41. Laws 2005, First Special Session chapter 4, article 8, section 84, as amended 
45.18 	by Laws 2006, chapter 264, section 15, is amended to read:
45.19 	Sec. 84. SOLE-SOURCE OR SINGLE-PLAN MANAGED CARE 
45.20 	CONTRACT.
 45.21 	(a) Notwithstanding Minnesota Statutes, section 256B.692, subdivision 6, clause 
45.22 	(1), paragraph (c), the commissioner of human services shall approve a county-based 
45.23 	purchasing health plan proposal, submitted on behalf of Cass, Crow Wing, Morrison, 
45.24 	Todd, and Wadena Counties, that requires county-based purchasing on a single-plan basis 
45.25 	contract if the implementation of the single-plan purchasing proposal does not limit an 
45.26 	enrollee's provider choice or access to services and all other requirements applicable to 
45.27 	health plan purchasing are satisfied. The commissioner shall continue single health plan 
45.28 	purchasing arrangements with county-based purchasing entities in the service areas in 
45.29 	existence on May 1, 2006, including arrangements for which a proposal was submitted by 
45.30 	May 1, 2006, on behalf of Cass, Crow Wing, Morrison, Todd, and Wadena Counties, in 
45.31 	response to a request for proposals issued by the commissioner The commissioner shall 
45.32 	continue to use single-health plan, county-based purchasing arrangements for medical 
45.33 	assistance and general assistance medical care managed care programs and products for 
45.34 	the counties that were in single-health plan, county-based purchasing arrangements on 
45.35 	March 1, 2008. This paragraph does not require the commissioner to terminate an existing 
46.1 	contract with a noncounty-based purchasing health plan that had enrollment in a medical 
46.2 	assistance program or product in these counties on March 1, 2008. This paragraph expires 
46.3 	on December 31, 2010, or the effective date of new contracts for medical assistance and 
46.4 	general assistance medical care managed care programs entered into at the conclusion of 
46.5 	the commissioner's next scheduled reprocurement process for the county-based purchasing 
46.6 	entities covered by this paragraph, whichever is later.
46.7 	(b) The commissioner shall consider, and may approve, contracting on a 
46.8 	single-health plan basis with other county-based purchasing plans, or with other qualified 
46.9 	health plans that have coordination arrangements with counties, to serve persons with a 
46.10 	disability who voluntarily enroll, in order to promote better coordination or integration of 
46.11 	health care services, social services and other community-based services, provided that all 
46.12 	requirements applicable to health plan purchasing, including those in Minnesota Statutes, 
46.13 	section 256B.69, subdivision 23, are satisfied. By January 15, 2007, the commissioner 
46.14 	shall report to the chairs of the appropriate legislative committees in the house and senate 
46.15 	an analysis of the advantages and disadvantages of using single-health plan purchasing 
46.16 	to serve persons with a disability who are eligible for health care programs. The report 
46.17 	shall include consideration of the impact of federal health care programs and policies 
46.18 	for persons who are eligible for both federal and state health care programs and shall 
46.19 	consider strategies to improve coordination between federal and state health care programs 
46.20 	for those persons Nothing in this paragraph supersedes or modifies the requirements in 
46.21 	paragraph (a).

46.22 	Sec. 42. NURSING FACILITY PENSION COSTS.
 46.23 	The commissioner of human services shall evaluate the extent to which the 
46.24 	alternative payment system reimbursement methodology for pension costs leads to 
46.25 	funding shortfalls for nursing facilities that convert from public to private ownership. The 
46.26 	commissioner shall report to the legislature by January 15, 2009, recommendations for 
46.27 	any changes to the alternative payment system reimbursement methodology for pension 
46.28 	costs necessary to ensure the financial viability of nursing facilities. The commissioner 
46.29 	shall pay for any costs related to this study using existing resources.

46.30 	Sec. 43. NURSING FACILITY RATE DISPARITY REPORT.
 46.31 	The commissioner of human services shall study and report to the legislature by 
46.32 	January 15, 2009, with recommendations to reduce rate disparities between nursing 
46.33 	facilities in various regions of the state. The recommendations shall include cost estimates 
47.1 	and may include a phase-in schedule. The study shall be accomplished using existing 
47.2 	resources.

47.3 	Sec. 44. REVISOR'S INSTRUCTION.
 47.4 	The revisor of statutes shall codify section 41 as a new subdivision of Minnesota 
47.5 	Statutes, section 256B.692.

47.6 	Sec. 45.  REPEALER.
 47.7 	(a) Minnesota Statutes 2006, section 256B.0571, subdivision 8a, is repealed.
47.8 	(b) Laws 2003, First Special Session chapter 5, section 11, is repealed.

47.9 	ARTICLE 2
47.10 	MINNESOTA SEX OFFENDER PROGRAM

47.11 	Section 1. Minnesota Statutes 2006, section 13.851, is amended by adding a 
47.12 	subdivision to read:
47.13 		Subd. 9.Civil commitment of sexual offenders. Data relating to the preparation 
47.14 	of a petition to commit an individual as a sexual psychopathic personality or sexually 
47.15 	dangerous person is governed by section 253B.185, subdivision 1b.

47.16 	Sec. 2. Minnesota Statutes 2006, section 246B.02, is amended to read:
47.17 	246B.02 ESTABLISHMENT OF MINNESOTA SEX OFFENDER PROGRAM.
47.18 	The commissioner of human services shall establish and maintain a secure facility 
47.19 	located in Moose Lake. The facility shall be operated by the Minnesota sex offender 
47.20 	program. The program shall provide care and treatment in secure treatment facilities 
47.21 	to persons on a court-hold order and residing in a secure treatment facility or program 
47.22 	pending commitment or committed by the courts as sexual psychopathic personalities 
47.23 	or sexually dangerous persons, or persons admitted there with the consent of the 
47.24 	commissioner of human services.

47.25 	Sec. 3. [246B.06] ESTABLISHMENT OF MINNESOTA STATE INDUSTRIES.
47.26 		Subdivision 1.Establishment; purpose. (a) The commissioner of human 
47.27 	services may establish, equip, maintain, and operate the Minnesota State Industries at 
47.28 	any Minnesota sex offender program facility under this chapter. The commissioner 
47.29 	may establish industrial and commercial activities for sex offender treatment patients 
47.30 	as the commissioner deems necessary and suitable to the profitable employment, 
47.31 	educational training, and development of proper work habits of patients consistent with 
48.1 	the requirements in section 246B.05. The industrial and commercial activities authorized 
48.2 	by this section are designated Minnesota State Industries and must be for the primary 
48.3 	purpose of sustaining and ensuring Minnesota State Industries' self-sufficiency, providing 
48.4 	educational training, meaningful employment, and the teaching of proper work habits to 
48.5 	the patients of the Minnesota sex offender program under this chapter, and not solely as 
48.6 	competitive business ventures. 
48.7 	(b) The net profits from Minnesota State Industries must be used for the benefit 
48.8 	of the patients as it relates to building education and self-sufficiency skills. Prior to 
48.9 	the establishment of any industrial and commercial activity, the commissioner of 
48.10 	human services may consult with stakeholders including representatives of business, 
48.11 	industry, organized labor, the commissioner of education, the state Apprenticeship 
48.12 	Council, the commissioner of labor and industry, the commissioner of employment and 
48.13 	economic development, the commissioner of administration, and other stakeholders the 
48.14 	commissioner deems qualified. The purpose of the stakeholder consultation is to determine 
48.15 	the quantity and nature of the goods, wares, merchandise, and services to be made or 
48.16 	provided, and the types of processes to be used in their manufacture, processing, repair, 
48.17 	and production consistent with the greatest opportunity for the reform and educational 
48.18 	training of the patients, and with the best interests of the state, business, industry, and labor.
48.19 	(c) The commissioner of human services shall, at all times in the conduct of any 
48.20 	industrial or commercial activity authorized by this section, utilize patient labor to the 
48.21 	greatest extent feasible, provided that the commissioner may employ all administrative, 
48.22 	supervisory, and other skilled workers necessary to the proper instruction of the patients 
48.23 	and the profitable and efficient operation of the industrial and commercial activities 
48.24 	authorized by this section.
48.25 	(d) The commissioner of human services may authorize the director of any 
48.26 	Minnesota sex offender treatment facility under the commissioner's control to accept 
48.27 	work projects from outside sources for processing, fabrication, or repair, provided that 
48.28 	preference is given to the performance of work projects for state departments and agencies.
48.29 		Subd. 2.Revolving fund. As described in section 246B.05, subdivision 2, there 
48.30 	is established a Minnesota State Industries revolving fund under the control of the 
48.31 	commissioner of human services. The revolving fund must be used for Minnesota State 
48.32 	Industries authorized under this section, including, but not limited to, the purchase of 
48.33 	equipment and raw materials, the payment of salaries and wages, and other necessary 
48.34 	expenses as determined by the commissioner of human services. The purchase of 
48.35 	services, materials, and commodities used in and held for resale are not subject to the 
48.36 	competitive bidding procedures of section 16C.06, but are subject to all other provisions 
49.1 	of chapters 16B and 16C. When practical, purchases must be made from small targeted 
49.2 	group businesses designated under section 16C.16. Additionally, the expenses of patient 
49.3 	educational training and self-sufficiency skills may be financed from the revolving fund 
49.4 	in an amount to be determined by the commissioner or designee. The proceeds and 
49.5 	income from all Minnesota State Industries conducted at the Minnesota sex offender 
49.6 	treatment facilities must be deposited in the revolving  fund subject to disbursement under 
49.7 	subdivision 3. The commissioner of human services may request that money in the fund 
49.8 	be invested pursuant to section 11A.25. Proceeds from the investment not currently 
49.9 	needed must be accounted for separately and credited to the revolving fund. 
49.10 		Subd. 3.Disbursement from fund. The Minnesota State Industries revolving 
49.11 	fund must be deposited in the state treasury and paid out only on proper vouchers as 
49.12 	authorized and approved by the commissioner of human services, and in the same manner 
49.13 	and under the same restrictions as are now provided by law for the disbursement of funds 
49.14 	by the commissioner. An amount deposited in the state treasury equal to six months 
49.15 	of net operating cash as determined by the prior 12 months of revenue and cash flow 
49.16 	statements must be restricted for use only by Minnesota State Industries as described 
49.17 	under subdivision 2. For purposes of this subdivision, "net operating cash" means net 
49.18 	income, minus sales, plus cost of goods sold. Cost of goods sold  include all direct costs 
49.19 	of industry products attributable to the goods' production.
49.20 		Subd. 4.Revolving fund; borrowing.  The commissioner of human services is 
49.21 	authorized to borrow sums of money as the commissioner deems necessary to meet 
49.22 	current demands on the Minnesota State Industries revolving fund. The sums borrowed 
49.23 	must not exceed, in any calendar year, six months of net operating cash as determined 
49.24 	by the previous 12 months of the industries' revenue and cash flow statements. If the 
49.25 	commissioner of human services determines that borrowing of funds is necessary, the 
49.26 	commissioner of human services shall certify this need to the commissioner of finance. 
49.27 	Funds may be borrowed from general fund appropriations to the Minnesota sex offender 
49.28 	program with the authorization of the commissioner of finance. Upon authorization of the 
49.29 	commissioner of finance, the transfer must be made and credited to the Minnesota State 
49.30 	Industries revolving fund. The sum transferred to the Minnesota State Industries revolving 
49.31 	fund must be repaid by the commissioner of human services from the revolving fund to 
49.32 	the fund from which it was transferred in a time period specified by the commissioner 
49.33 	of finance, but by no later than the end of the biennium, as defined in section 16A.011, 
49.34 	in which the loan is made. When any transfer is made to the Minnesota State Industries 
49.35 	revolving fund, the commissioner of finance shall notify the commissioner of human 
49.36 	services of the amount transferred to the fund and the date the transfer is to be repaid.
50.1 		Subd. 5.Federal grant fund transfers. Grants received by the commissioner of 
50.2 	human services from the federal government for any vocational training program or for 
50.3 	administration by the commissioner of human services must (1) be credited to a federal 
50.4 	grant fund and then (2) be transferred from the federal grant fund to the credit of the 
50.5 	commissioner of human services in the appropriate account upon certification by the 
50.6 	commissioner of human services that the amounts requested to be transferred have been 
50.7 	earned or are required for the purposes of this section. Funds received by the federal 
50.8 	grant fund need not be budgeted as such, provided transfers from the fund are budgeted 
50.9 	for allotment purposes in the appropriate appropriation.
50.10 		Subd. 6.Wages. Notwithstanding section 177.24 or any other law to the 
50.11 	contrary, wages paid to patients working within this program are at the discretion of the 
50.12 	commissioner of human services.

50.13 	Sec. 4. Minnesota Statutes 2006, section 253B.045, subdivision 1, is amended to read:
50.14 		Subdivision 1.Restriction. Except when ordered by the court pursuant to a finding 
50.15 	of necessity to protect the life of the proposed patient or others, or as provided under 
50.16 	subdivision 1a, no person subject to the provisions of this chapter shall be confined in a 
50.17 	jail or correctional institution, except pursuant to chapter 242 or 244.

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

50.19 	Sec. 5. Minnesota Statutes 2006, section 253B.045, is amended by adding a 
50.20 	subdivision to read:
50.21 		Subd. 1a.Exception. A person who is being petitioned for commitment 
50.22 	under section 253B.185 and who is placed under a judicial hold order under section 
50.23 	253B.07, subdivision 2b or 7, may be confined at a Department of Corrections or a 
50.24 	county correctional or detention facility, rather than a secure treatment facility, until a 
50.25 	determination of the commitment petition as specified in this subdivision.
50.26 	(a) A court may order that a person who is being petitioned for commitment under 
50.27 	section 253B.185 be confined in a Department of Corrections facility pursuant to the 
50.28 	judicial hold order under the following circumstances and conditions:
50.29 	(1) the person is currently serving a sentence in a Department of Corrections facility 
50.30 	and the court determines that the person has made a knowing and voluntary: (i) waiver 
50.31 	of the right to be held in a secure treatment facility; and (ii) election to be held in a 
50.32 	Department of Corrections facility. The order confining the person in the Department of 
50.33 	Corrections facility shall remain in effect until the court vacates the order or the person's 
50.34 	criminal sentence and conditional release term expire. In no case may the person be held 
51.1 	in a Department of Corrections facility pursuant only to this subdivision, and not pursuant 
51.2 	to any separate correctional authority, for more than 210 days; 
51.3 	(2) a person who has elected to be confined in a Department of Corrections facility 
51.4 	under this subdivision may revoke the election by filing a written notice of intent to revoke 
51.5 	the election with the court and serving the notice upon the Department of Corrections and 
51.6 	the county attorney. The court shall order the person transferred to a secure treatment 
51.7 	facility within 15 days of the date that the notice of revocation was filed with the court, 
51.8 	except that, if the person has additional time to serve in prison at the end of the 15-day 
51.9 	period, the person shall not be transferred to a secure treatment facility until the person's 
51.10 	prison term expires. After a person has revoked an election to remain in a Department of 
51.11 	Corrections facility under this subdivision, the court may not adopt another election to 
51.12 	remain in a Department of Corrections facility without the agreement of both parties and 
51.13 	the Department of Corrections;
51.14 	(3) upon petition by the commissioner of corrections, after notice to the parties 
51.15 	and opportunity for hearing and for good cause shown, the court may order that the 
51.16 	person's place of confinement be changed from the Department of Corrections to a secure 
51.17 	treatment facility;
51.18 	(4) while at a Department of Corrections facility pursuant to this subdivision, the 
51.19 	person shall remain subject to all rules and practices applicable to correctional inmates in 
51.20 	the facility in which the person is placed, including, but not limited to, the powers and 
51.21 	duties of the commissioner of corrections under section 241.01, powers relating to the 
51.22 	use of force under section 243.52, and the right of the commissioner of corrections to 
51.23 	determine the place of confinement in a prison, reformatory, or other facility;
51.24 	(5) a person may not be confined in a Department of Corrections facility under this 
51.25 	provision beyond the end of the person's executed sentence or the end of any applicable 
51.26 	conditional release period, whichever is later. If a person confined in a Department of 
51.27 	Corrections facility pursuant to this provision reaches the person's supervised release 
51.28 	date and is subject to a period of conditional release, the period of conditional release 
51.29 	shall commence on the supervised release date even though the person remains in the 
51.30 	Department of Corrections facility pursuant to this provision. At the end of the later of 
51.31 	the executed sentence or any applicable conditional release period, the person shall be 
51.32 	transferred to a secure treatment facility; and
51.33 	(6) nothing in this section may be construed to establish a right of an inmate in a 
51.34 	state correctional facility to participate in sex offender treatment. This section must be 
51.35 	construed in a manner consistent with the provisions of section 244.03.
52.1 	(b) The committing county may offer a person who is being petitioned for 
52.2 	commitment under section 253B.185, and who is placed under a judicial hold order under 
52.3 	section 253B.07, subdivision 2b or 7, the option to be held in a county correctional or 
52.4 	detention facility rather than a secure treatment facility, under such terms as may be agreed 
52.5 	to by the county, the commitment petitioner, and the commitment respondent. If a person 
52.6 	makes such an election under this paragraph, the court-hold order shall specify the terms 
52.7 	of the agreement, including the conditions for revoking the election.

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

52.9 	Sec. 6. Minnesota Statutes 2006, section 253B.045, subdivision 2, is amended to read:
52.10 		Subd. 2.Facilities. Each county or a group of counties shall maintain or provide 
52.11 	by contract a facility for confinement of persons held temporarily for observation, 
52.12 	evaluation, diagnosis, treatment, and care. When the temporary confinement is provided 
52.13 	at a regional treatment center, the commissioner shall charge the county of financial 
52.14 	responsibility for the costs of confinement of persons hospitalized under section 253B.05, 
52.15 	subdivisions 1 and 2, and section 253B.07, subdivision 2b, except that the commissioner 
52.16 	shall bill the responsible health plan first. If the person has health plan coverage, but the 
52.17 	hospitalization does not meet the criteria in subdivision 6 or section 62M.07, 62Q.53, 
52.18 	or 62Q.535, the county is responsible. When a person is temporarily confined in a 
52.19 	Department of Corrections facility solely under subdivision 1a, and not based on any 
52.20 	separate correctional authority:
52.21 	(1) the commissioner of corrections may charge the county of financial responsibility 
52.22 	for the costs of confinement; and 
52.23 	(2) the Department of Human Services shall use existing appropriations to fund 
52.24 	all remaining nonconfinement costs. The funds received by the commissioner for the 
52.25 	confinement and nonconfinement costs are appropriated to the department for these 
52.26 	purposes.
52.27 	"County of financial responsibility" means the county in which the person resides at the 
52.28 	time of confinement or, if the person has no residence in this state, the county which 
52.29 	initiated the confinement. The charge for confinement in a facility operated by the 
52.30 	commissioner of human service shall be based on the commissioner's determination of 
52.31 	the cost of care pursuant to section 246.50, subdivision 5. When there is a dispute as to 
52.32 	which county is the county of financial responsibility, the county charged for the costs of 
52.33 	confinement shall pay for them pending final determination of the dispute over financial 
53.1 	responsibility. Disputes about the county of financial responsibility shall be submitted to 
53.2 	the commissioner to be settled in the manner prescribed in section 256G.09.

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

53.4 	Sec. 7. Minnesota Statutes 2006, section 253B.18, subdivision 4c, is amended to read:
53.5 		Subd. 4c.Special review board. (a) The commissioner shall establish one or more 
53.6 	panels of a special review board for persons committed as mentally ill and dangerous to 
53.7 	the public. The board shall consist of three members experienced in the field of mental 
53.8 	illness. One member of each special review board panel shall be a psychiatrist and one 
53.9 	member shall be an attorney. No member shall be affiliated with the Department of 
53.10 	Human Services. The special review board shall meet at least every six months and at 
53.11 	the call of the commissioner. It shall hear and consider all petitions for a reduction in 
53.12 	custody or to appeal a revocation of provisional discharge. A "reduction in custody" 
53.13 	means transfer from a secure treatment facility; all petitions for, discharge, and provisional 
53.14 	discharge, and revocation of provisional discharge; and make recommendations to the 
53.15 	commissioner concerning them. Patients may be transferred by the commissioner between 
53.16 	secure treatment facilities without a special review board hearing.
53.17 	(b) Members of the special review board shall receive compensation and 
53.18 	reimbursement for expenses as established by the commissioner.
53.19 	(b) A petition filed by a person committed as mentally ill and dangerous to the 
53.20 	public under this section must be heard as provided in subdivision 5 and, as applicable, 
53.21 	subdivision 13. A petition filed by a person committed as a sexual psychopathic 
53.22 	personality or as a sexually dangerous person under section 253B.185, or committed 
53.23 	as both mentally ill and dangerous to the public under this section and as a sexual 
53.24 	psychopathic personality or as a sexually dangerous person must be heard as provided in 
53.25 	section 253B.185, subdivision 9.

53.26 	Sec. 8. Minnesota Statutes 2006, section 253B.18, subdivision 5, is amended to read:
53.27 		Subd. 5.Petition; notice of hearing; attendance; order. (a) A petition for an 
53.28 	order of transfer, discharge, provisional discharge,a reduction in custody or revocation of 
53.29 	provisional discharge shall be filed with the commissioner and may be filed by the patient 
53.30 	or by the head of the treatment facility. A patient may not petition the special review 
53.31 	board for six months following commitment under subdivision 3 or following the final 
53.32 	disposition of any previous petition and subsequent appeal by the patient. The medical 
53.33 	director may petition at any time.
54.1 	(b) Fourteen days prior to the hearing, the committing court, the county attorney of 
54.2 	the county of commitment, the designated agency, interested person, the petitioner, and 
54.3 	the petitioner's counsel shall be given written notice by the commissioner of the time and 
54.4 	place of the hearing before the special review board. Only those entitled to statutory notice 
54.5 	of the hearing or those administratively required to attend may be present at the hearing. 
54.6 	The patient may designate interested persons to receive notice by providing the names 
54.7 	and addresses to the commissioner at least 21 days before the hearing. The board shall 
54.8 	provide the commissioner with written findings of fact and recommendations within 21 
54.9 	days of the hearing. The commissioner shall issue an order no later than 14 days after 
54.10 	receiving the recommendation of the special review board. A copy of the order shall be 
54.11 	sent by certified mail mailed to every person entitled to statutory notice of the hearing 
54.12 	within five days after it is signed. No order by the commissioner shall be effective sooner 
54.13 	than 30 days after the order is signed, unless the county attorney, the patient, and the 
54.14 	commissioner agree that it may become effective sooner.
54.15 	(c) The special review board shall hold a hearing on each petition prior to making 
54.16 	its recommendation to the commissioner. The special review board proceedings are not 
54.17 	contested cases as defined in chapter 14. Any person or agency receiving notice that 
54.18 	submits documentary evidence to the special review board prior to the hearing shall also 
54.19 	provide copies to the patient, the patient's counsel, the county attorney of the county of 
54.20 	commitment, the case manager, and the commissioner.
54.21 	(d) Prior to the final decision by the commissioner, the special review board may be 
54.22 	reconvened to consider events or circumstances that occurred subsequent to the hearing.
54.23 	(e) In making their recommendations and order, the special review board and 
54.24 	commissioner must consider any statements received from victims under subdivision 5a.

54.25 	Sec. 9. Minnesota Statutes 2006, section 253B.18, subdivision 5a, is amended to read:
54.26 		Subd. 5a.Victim notification of petition and release; right to submit statement.
 54.27 	(a) As used in this subdivision:
54.28 	(1) "crime" has the meaning given to "violent crime" in section 609.1095, and 
54.29 	includes criminal sexual conduct in the fifth degree and offenses within the definition of 
54.30 	"crime against the person" in section 253B.02, subdivision 4a, and also includes offenses 
54.31 	listed in section 253B.02, subdivision 7a, paragraph (b), regardless of whether they are 
54.32 	sexually motivated;
54.33 	(2) "victim" means a person who has incurred loss or harm as a result of a crime 
54.34 	the behavior for which forms the basis for a commitment under this section or section 
54.35 	253B.185; and
55.1 	(3) "convicted" and "conviction" have the meanings given in section 609.02, 
55.2 	subdivision 5, and also include juvenile court adjudications, findings under Minnesota 
55.3 	Rules of Criminal Procedure, Rule 20.02, that the elements of a crime have been proved, 
55.4 	and findings in commitment cases under this section or section 253B.185 that an act or 
55.5 	acts constituting a crime occurred.
55.6 	(b) A county attorney who files a petition to commit a person under this section 
55.7 	or section 253B.185 shall make a reasonable effort to provide prompt notice of filing 
55.8 	the petition to any victim of a crime for which the person was convicted. In addition, 
55.9 	the county attorney shall make a reasonable effort to promptly notify the victim of the 
55.10 	resolution of the petition.
55.11 	(c) Before provisionally discharging, discharging, granting pass-eligible status, 
55.12 	approving a pass plan, or otherwise permanently or temporarily releasing a person 
55.13 	committed under this section or section 253B.185 from a treatment facility, the head of the 
55.14 	treatment facility shall make a reasonable effort to notify any victim of a crime for which 
55.15 	the person was convicted that the person may be discharged or released and that the victim 
55.16 	has a right to submit a written statement regarding decisions of the medical director, 
55.17 	special review board, or commissioner with respect to the person. To the extent possible, 
55.18 	the notice must be provided at least 14 days before any special review board hearing or 
55.19 	before a determination on a pass plan. Notwithstanding section 611A.06, subdivision 4, 
55.20 	the commissioner shall provide the judicial appeal panel with victim information in order 
55.21 	to comply with the provisions of this section. The judicial appeal panel shall ensure that 
55.22 	the data on victims remains private as provided for in section 611A.06, subdivision 4.
55.23 	(d) This subdivision applies only to victims who have requested notification by 
55.24 	contacting, in writing, the county attorney in the county where the conviction for the crime 
55.25 	occurred. A county attorney who receives a request for notification under this paragraph 
55.26 	shall promptly forward the request to the commissioner of human services.
55.27 	(e) The rights under this subdivision are in addition to rights available to a victim 
55.28 	under chapter 611A. This provision does not give a victim all the rights of a "notified 
55.29 	person" or a person "entitled to statutory notice" under subdivision 4a, 4b, or 5.

55.30 	Sec. 10. Minnesota Statutes 2007 Supplement, section 253B.185, subdivision 1b, 
55.31 	is amended to read:
55.32 		Subd. 1b.County attorney access to data. Notwithstanding sections 144.291 
55.33 	to 144.298; 245.467, subdivision 6; 245.4876, subdivision 7; 260B.171; 260B.235, 
55.34 	subdivision 8; 260C.171; and 609.749, subdivision 6, or any provision of chapter 13 
55.35 	or other state law, prior to filing a petition for commitment as a sexual psychopathic 
56.1 	personality or as a sexually dangerous person, and upon notice to the proposed patient, 
56.2 	the county attorney or the county attorney's designee may move the court for an order 
56.3 	granting access to any records or data, to the extent it relates to the proposed patient, for 
56.4 	the purpose of determining whether good cause exists to file a petition and, if a petition 
56.5 	is filed, to support the allegations set forth in the petition. 
56.6 	The court may grant the motion if: (1) the Department of Corrections refers the case 
56.7 	for commitment as a sexual psychopathic personality or a sexually dangerous person; or 
56.8 	(2) upon a showing that the requested category of data or records may be relevant to 
56.9 	the determination by the county attorney or designee. The court shall decide a motion 
56.10 	under this subdivision within 48 hours after a hearing on the motion. Notice to the 
56.11 	proposed patient need not be given upon a showing that such notice may result in harm or 
56.12 	harassment of interested persons or potential witnesses. Notwithstanding any provision 
56.13 	of chapter 13 or other state law, a county attorney considering the civil commitment of a 
56.14 	person under this section may obtain records and data from the Department of Corrections 
56.15 	or any probation or parole agency in this state upon request, without a court order, for the 
56.16 	purpose of determining whether good cause exists to file a petition, and if a petition is 
56.17 	filed, to support the allegations set forth in the petition. At the time of the request for 
56.18 	the records, the county attorney shall provide notice of the request to the person who is 
56.19 	the subject of the records.
56.20 	Data collected pursuant to this subdivision shall retain their original status and, if not 
56.21 	public, are inadmissible in any court proceeding unrelated to civil commitment, unless 
56.22 	otherwise permitted.

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

56.24 	Sec. 11. Minnesota Statutes 2006, section 253B.185, subdivision 5, is amended to read:
56.25 		Subd. 5.Financial responsibility. (a) For purposes of this subdivision, "state 
56.26 	facility" has the meaning given in section 246.50, and also includes a Department of 
56.27 	Corrections facility when the proposed patient is confined in such a facility pursuant to 
56.28 	section 253B.045, subdivision 1a. 
56.29 	(b) Notwithstanding sections 246.54, 253B.045, and any other law to the contrary, 
56.30 	when a petition is filed for commitment under this section pursuant to the notice required 
56.31 	in section 244.05, subdivision 7, the state and county are each responsible for 50 percent of 
56.32 	the cost of the person's confinement at a state facility or county jail, prior to commitment. 
56.33 	(c) The county shall submit an invoice to the state court administrator for 
56.34 	reimbursement of the state's share of the cost of confinement.
57.1 	(d) Notwithstanding paragraph (b), the state's responsibility for reimbursement is 
57.2 	limited to the amount appropriated for this purpose.

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

57.4 	Sec. 12. Minnesota Statutes 2006, section 253B.185, is amended by adding a 
57.5 	subdivision to read:
57.6 		Subd. 9.Petition for reduction in custody. (a) This subdivision applies only 
57.7 	to committed persons as defined in paragraph (b). The procedures in section 253B.18, 
57.8 	subdivision 5a, for victim notification and right to submit a statement under section 
57.9 	253B.18 apply to petitions filed and reductions in custody recommended under this 
57.10 	subdivision.
57.11 	(b) As used in this subdivision:
57.12 	(1) "committed person" means an individual committed under this section, or under 
57.13 	this section and under section 253B.18, as mentally ill and dangerous. It does not include 
57.14 	persons committed only as mentally ill and dangerous under section 253B.18; and
57.15 	(2) "reduction in custody" means transfer out of a secure treatment facility, a 
57.16 	provisional discharge, or a discharge from commitment.
57.17 	(c) A petition for a reduction in custody or an appeal of a revocation of provisional 
57.18 	discharge may be filed by either the committed person or by the head of the treatment 
57.19 	facility and must be filed with and considered by the special review board. A committed 
57.20 	person may not petition the special review board any sooner than six months following 
57.21 	either:
57.22 	(1) the entry of judgment in the district court of the order for commitment issued 
57.23 	under section 253B.18, subdivision 3, or upon the exhaustion of all related appeal rights 
57.24 	in state court relating to that order, whichever is later; or
57.25 	(2) any recommendation of the special review board or order of the judicial appeal 
57.26 	panel, or upon the exhaustion of all appeal rights in state court, whichever is later. The 
57.27 	medical director may petition at any time. The special review board proceedings are not 
57.28 	contested cases as defined in chapter 14.
57.29 	(d) The special review board shall hold a hearing on each petition before issuing a 
57.30 	recommendation under paragraph (f). Fourteen days before the hearing, the committing 
57.31 	court, the county attorney of the county of commitment, the designated agency, an 
57.32 	interested person, the petitioner and the petitioner's counsel, and the committed person 
57.33 	and the committed person's counsel must be given written notice by the commissioner of 
57.34 	the time and place of the hearing before the special review board. Only those entitled to 
57.35 	statutory notice of the hearing or those administratively required to attend may be present 
58.1 	at the hearing. The patient may designate interested persons to receive notice by providing 
58.2 	the names and addresses to the commissioner at least 21 days before the hearing.
58.3 	(e) A person or agency receiving notice that submits documentary evidence to the 
58.4 	special review board before the hearing must also provide copies to the committed person, 
58.5 	the committed person's counsel, the county attorney of the county of commitment, the case 
58.6 	manager, and the commissioner. The special review board must consider any statements 
58.7 	received from victims under section 253B.18, subdivision 5a.
58.8 	(f) Within 30 days of the hearing, the special review board shall issue written 
58.9 	findings of fact and shall recommend denial or approval of the petition to the judicial 
58.10 	appeal panel established under section 253B.19. The commissioner shall forward the 
58.11 	recommendation of the special review board to the judicial appeal panel and to every 
58.12 	person entitled to statutory notice. No reduction in custody or reversal of a revocation 
58.13 	of provisional discharge recommended by the special review board is effective until it 
58.14 	has been reviewed by the judicial appeal panel and until 15 days after an order from the 
58.15 	judicial appeal panel affirming, modifying, or denying the recommendation.

58.16 	Sec. 13. Minnesota Statutes 2006, section 253B.19, subdivision 2, is amended to read:
58.17 		Subd. 2.Petition; hearing. The committed person or the county attorney of the 
58.18 	county from which a patient was committed as a person who is mentally ill and dangerous 
58.19 	to the public, or as a sexual psychopathic personality or as a sexually dangerous person 
58.20 	may petition the appeal panel for a rehearing and reconsideration of a decision by the 
58.21 	commissioner. The petition shall be filed with the Supreme Court within 30 days after the 
58.22 	decision of the commissioner is signed. The Supreme Court shall refer the petition to the 
58.23 	chief judge of the appeal panel. (a) A person committed as mentally ill and dangerous to 
58.24 	the public under section 253B.18, or the county attorney of the county from which the 
58.25 	person was committed or the county of financial responsibility, may petition the judicial 
58.26 	appeal panel for a rehearing and reconsideration of a decision by the commissioner under 
58.27 	section 253B.18, subdivision 5. The judicial appeal panel must not consider petitions for 
58.28 	relief other than those considered by the commissioner from which the appeal is taken. 
58.29 	The petition must be filed with the Supreme Court within 30 days after the decision of 
58.30 	the commissioner is signed. The hearing must be held within 45 days of the filing of the 
58.31 	petition unless an extension is granted for good cause.
58.32 	(b) A person committed as a sexual psychopathic personality or as a sexually 
58.33 	dangerous person under section 253B.185, or committed as both mentally ill and 
58.34 	dangerous to the public under section 253B.18 and as a sexual psychopathic personality or 
58.35 	as a sexually dangerous person under section 253B.185; the county attorney of the county 
59.1 	from which the person was committed or the county of financial responsibility; or the 
59.2 	commissioner may petition the judicial appeal panel for a rehearing and reconsideration 
59.3 	of a decision of the special review board under section 253B.185, subdivision 9. The 
59.4 	petition must be filed with the Supreme Court within 30 days after the decision is mailed 
59.5 	by the commissioner as required in section 253B.185, subdivision 9, paragraph (f). The 
59.6 	hearing must be held within 180 days of the filing of the petition unless an extension is 
59.7 	granted for good cause. If no party petitions the judicial appeal panel for a rehearing 
59.8 	or reconsideration within 30 days, the judicial appeal panel shall either issue an order 
59.9 	adopting the recommendations of the special review board or set the matter on for a 
59.10 	hearing pursuant to this paragraph.
59.11 	(c) For an appeal under paragraph (a) or (b), the Supreme Court shall refer the 
59.12 	petition to the chief judge of the judicial appeal panel. The chief judge shall notify the 
59.13 	patient, the county attorney of the county of commitment, the designated agency, the 
59.14 	commissioner, the head of the treatment facility, any interested person, and other persons 
59.15 	the chief judge designates, of the time and place of the hearing on the petition. The notice 
59.16 	shall be given at least 14 days prior to the date of the hearing. The hearing shall be within 
59.17 	45 days of the filing of the petition unless an extension is granted for good cause.
59.18 	(d) Any person may oppose the petition. The patient; patient's counsel; the county 
59.19 	attorney of the committing county or the county of financial responsibility; and the 
59.20 	commissioner shall participate as parties to the proceeding pending before the judicial 
59.21 	appeal panel and shall, no later than 20 days before the hearing on the petition, inform the 
59.22 	judicial appeal panel and the opposing party in writing whether they support or oppose the 
59.23 	petition and provide a summary of facts in support of their position. The judicial appeal 
59.24 	panel may appoint examiners and may adjourn the hearing from time to time. It shall hear 
59.25 	and receive all relevant testimony and evidence and make a record of all proceedings. 
59.26 	The patient,; patient's counsel,; and the county attorney of the committing county may
59.27 	or the county of financial responsibility have the right to be present and may present 
59.28 	and cross-examine all witnesses and offer a factual and legal basis in support of their 
59.29 	positions. The petitioning party bears the burden of going forward with the evidence. The 
59.30 	party opposing discharge bears the burden of proof by clear and convincing evidence that 
59.31 	the respondent is in need of commitment.

59.32 	Sec. 14. Minnesota Statutes 2006, section 253B.19, subdivision 3, is amended to read:
59.33 		Subd. 3.Decision. A majority of the judicial appeal panel shall rule upon the 
59.34 	petition. The panel shall consider the petition de novo. The order of the judicial appeal 
59.35 	panel shall supersede thean order of the commissioner in the cases under section 253B.18, 
60.1 	subdivision 5. No order of the judicial appeal panel granting a transfer, discharge or 
60.2 	provisional discharge shall be made effective sooner than 15 days after it is issued. 
60.3 	The panel may not consider petitions for relief other than those considered by the 
60.4 	commissioner or special review board from which the appeal is taken. The judicial appeal
60.5 	panel may not grant a transfer or provisional discharge on terms or conditions that were 
60.6 	not presented to the commissioner or the special review board.

60.7 	Sec. 15. Minnesota Statutes 2006, section 626.5572, subdivision 21, is amended to 
60.8 	read:
60.9 		Subd. 21.Vulnerable adult. "Vulnerable adult" means any person 18 years of 
60.10 	age or older who:
60.11 	(1) is a resident or inpatient of a facility;
60.12 	(2) receives services at or from a facility required to be licensed to serve adults 
60.13 	under sections 245A.01 to 245A.15, except that a person receiving outpatient services for 
60.14 	treatment of chemical dependency or mental illness, or one who is served in the Minnesota 
60.15 	sex offender program on a court-hold order for commitment, or is committed as a sexual 
60.16 	psychopathic personality or as a sexually dangerous person under chapter 253B, is not 
60.17 	considered a vulnerable adult unless the person meets the requirements of clause (4);
60.18 	(3) receives services from a home care provider required to be licensed under section 
60.19 	144A.46; or from a person or organization that exclusively offers, provides, or arranges 
60.20 	for personal care assistant services under the medical assistance program as authorized 
60.21 	under sections 256B.04, subdivision 16, 256B.0625, subdivision 19a, 256B.0651, and 
60.22 	256B.0653 to 256B.0656; or
60.23 	(4) regardless of residence or whether any type of service is received, possesses a 
60.24 	physical or mental infirmity or other physical, mental, or emotional dysfunction:
60.25 	(i) that impairs the individual's ability to provide adequately for the individual's 
60.26 	own care without assistance, including the provision of food, shelter, clothing, health 
60.27 	care, or supervision; and
60.28 	(ii) because of the dysfunction or infirmity and the need for assistance, the individual 
60.29 	has an impaired ability to protect the individual from maltreatment.

60.30 	Sec. 16. MINNESOTA SEX OFFENDER PROGRAM; OPERATING 
60.31 	STANDARDS.
 60.32 	The commissioner of human services shall convene a working group of interested 
60.33 	parties to develop standards and guidelines for the operations of the Minnesota sex 
60.34 	offender program. The standards and guidelines shall include, but not be limited to:
61.1 	(1) criteria to establish a sex offender treatment advisory board;
61.2 	(2) criteria to ensure the necessary provision of health and dental care for patients;
61.3 	(3) criteria to ensure the necessary provision of mental health care; and
61.4 	(4) fire and safety criteria.
61.5 	The standards and guidelines shall be developed by the commissioner in consultation 
61.6 	with the working group members by February 1, 2009, and presented to the chairs of 
61.7 	the policy and finance committees having jurisdiction over the Minnesota sex offender 
61.8 	program for review.

61.9 	ARTICLE 3
61.10 	PUBLIC ASSISTANCE AND LICENSING

61.11 	Section 1. Minnesota Statutes 2006, section 245C.24, subdivision 2, is amended to read:
61.12 		Subd. 2.Permanent bar to set aside a disqualification. (a) Except as provided in 
61.13 	paragraph (b), the commissioner may not set aside the disqualification of any individual 
61.14 	disqualified pursuant to this chapter, regardless of how much time has passed, if the 
61.15 	individual was disqualified for a crime or conduct listed in section 245C.15, subdivision 1.
61.16 	(b) For an individual in the chemical dependency or corrections field who was 
61.17 	disqualified for a crime or conduct listed under section 245C.15, subdivision 1, and whose 
61.18 	disqualification was set aside prior to July 1, 2005, the commissioner must consider 
61.19 	granting a variance pursuant to section 245C.30 for the license holder for a program 
61.20 	dealing primarily with adults. A request for reconsideration evaluated under this paragraph 
61.21 	must include a letter of recommendation from the license holder that was subject to the 
61.22 	prior set-aside decision addressing the individual's quality of care to children or vulnerable 
61.23 	adults and the circumstances of the individual's departure from that service.

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

61.25 	Sec. 2. Minnesota Statutes 2007 Supplement, section 256.01, subdivision 2, is 
61.26 	amended to read:
61.27 		Subd. 2.Specific powers. Subject to the provisions of section 241.021, subdivision 
61.28 	2, the commissioner of human services shall carry out the specific duties in paragraphs (a) 
61.29 	through (cc):
61.30 	(a) Administer and supervise all forms of public assistance provided for by state law 
61.31 	and other welfare activities or services as are vested in the commissioner. Administration 
61.32 	and supervision of human services activities or services includes, but is not limited to, 
61.33 	assuring timely and accurate distribution of benefits, completeness of service, and quality 
62.1 	program management. In addition to administering and supervising human services 
62.2 	activities vested by law in the department, the commissioner shall have the authority to:
62.3 	(1) require county agency participation in training and technical assistance programs 
62.4 	to promote compliance with statutes, rules, federal laws, regulations, and policies 
62.5 	governing human services;
62.6 	(2) monitor, on an ongoing basis, the performance of county agencies in the 
62.7 	operation and administration of human services, enforce compliance with statutes, rules, 
62.8 	federal laws, regulations, and policies governing welfare services and promote excellence 
62.9 	of administration and program operation;
62.10 	(3) develop a quality control program or other monitoring program to review county 
62.11 	performance and accuracy of benefit determinations;
62.12 	(4) require county agencies to make an adjustment to the public assistance benefits 
62.13 	issued to any individual consistent with federal law and regulation and state law and rule 
62.14 	and to issue or recover benefits as appropriate;
62.15 	(5) delay or deny payment of all or part of the state and federal share of benefits and 
62.16 	administrative reimbursement according to the procedures set forth in section 256.017;
62.17 	(6) make contracts with and grants to public and private agencies and organizations, 
62.18 	both profit and nonprofit, and individuals, using appropriated funds; and
62.19 	(7) enter into contractual agreements with federally recognized Indian tribes with 
62.20 	a reservation in Minnesota to the extent necessary for the tribe to operate a federally 
62.21 	approved family assistance program or any other program under the supervision of the 
62.22 	commissioner. The commissioner shall consult with the affected county or counties in 
62.23 	the contractual agreement negotiations, if the county or counties wish to be included, 
62.24 	in order to avoid the duplication of county and tribal assistance program services. The 
62.25 	commissioner may establish necessary accounts for the purposes of receiving and 
62.26 	disbursing funds as necessary for the operation of the programs.
62.27 	(b) Inform county agencies, on a timely basis, of changes in statute, rule, federal law, 
62.28 	regulation, and policy necessary to county agency administration of the programs.
62.29 	(c) Administer and supervise all child welfare activities; promote the enforcement of 
62.30 	laws protecting disabled, dependent, neglected and delinquent children, and children born 
62.31 	to mothers who were not married to the children's fathers at the times of the conception 
62.32 	nor at the births of the children; license and supervise child-caring and child-placing 
62.33 	agencies and institutions; supervise the care of children in boarding and foster homes or 
62.34 	in private institutions; and generally perform all functions relating to the field of child 
62.35 	welfare now vested in the State Board of Control.
63.1 	(d) Administer and supervise all noninstitutional service to disabled persons, 
63.2 	including those who are visually impaired, hearing impaired, or physically impaired 
63.3 	or otherwise disabled. The commissioner may provide and contract for the care and 
63.4 	treatment of qualified indigent children in facilities other than those located and available 
63.5 	at state hospitals when it is not feasible to provide the service in state hospitals.
63.6 	(e) Assist and actively cooperate with other departments, agencies and institutions, 
63.7 	local, state, and federal, by performing services in conformity with the purposes of Laws 
63.8 	1939, chapter 431.
63.9 	(f) Act as the agent of and cooperate with the federal government in matters of 
63.10 	mutual concern relative to and in conformity with the provisions of Laws 1939, chapter 
63.11 	431, including the administration of any federal funds granted to the state to aid in the 
63.12 	performance of any functions of the commissioner as specified in Laws 1939, chapter 431, 
63.13 	and including the promulgation of rules making uniformly available medical care benefits 
63.14 	to all recipients of public assistance, at such times as the federal government increases its 
63.15 	participation in assistance expenditures for medical care to recipients of public assistance, 
63.16 	the cost thereof to be borne in the same proportion as are grants of aid to said recipients.
63.17 	(g) Establish and maintain any administrative units reasonably necessary for the 
63.18 	performance of administrative functions common to all divisions of the department.
63.19 	(h) Act as designated guardian of both the estate and the person of all the wards of 
63.20 	the state of Minnesota, whether by operation of law or by an order of court, without any 
63.21 	further act or proceeding whatever, except as to persons committed as developmentally 
63.22 	disabled. For children under the guardianship of the commissioner or a tribe in Minnesota 
63.23 	recognized by the Secretary of the Interior whose interests would be best served by 
63.24 	adoptive placement, the commissioner may contract with a licensed child-placing agency 
63.25 	or a Minnesota tribal social services agency to provide adoption services. A contract 
63.26 	with a licensed child-placing agency must be designed to supplement existing county 
63.27 	efforts and may not replace existing county programs or tribal social services, unless the 
63.28 	replacement is agreed to by the county board and the appropriate exclusive bargaining 
63.29 	representative, tribal governing body, or the commissioner has evidence that child 
63.30 	placements of the county continue to be substantially below that of other counties. Funds 
63.31 	encumbered and obligated under an agreement for a specific child shall remain available 
63.32 	until the terms of the agreement are fulfilled or the agreement is terminated.
63.33 	(i) Act as coordinating referral and informational center on requests for service for 
63.34 	newly arrived immigrants coming to Minnesota.
63.35 	(j) The specific enumeration of powers and duties as hereinabove set forth shall in no 
63.36 	way be construed to be a limitation upon the general transfer of powers herein contained.
64.1 	(k) Establish county, regional, or statewide schedules of maximum fees and charges 
64.2 	which may be paid by county agencies for medical, dental, surgical, hospital, nursing and 
64.3 	nursing home care and medicine and medical supplies under all programs of medical 
64.4 	care provided by the state and for congregate living care under the income maintenance 
64.5 	programs.
64.6 	(l) Have the authority to conduct and administer experimental projects to test 
64.7 	methods and procedures of administering assistance and services to recipients or potential 
64.8 	recipients of public welfare. To carry out such experimental projects, it is further provided 
64.9 	that the commissioner of human services is authorized to waive the enforcement of 
64.10 	existing specific statutory program requirements, rules, and standards in one or more 
64.11 	counties. The order establishing the waiver shall provide alternative methods and 
64.12 	procedures of administration, shall not be in conflict with the basic purposes, coverage, or 
64.13 	benefits provided by law, and in no event shall the duration of a project exceed four years. 
64.14 	It is further provided that no order establishing an experimental project as authorized by 
64.15 	the provisions of this section shall become effective until the following conditions have 
64.16 	been met:
64.17 	(1) the secretary of health and human services of the United States has agreed, for 
64.18 	the same project, to waive state plan requirements relative to statewide uniformity; and
64.19 	(2) a comprehensive plan, including estimated project costs, shall be approved by 
64.20 	the Legislative Advisory Commission and filed with the commissioner of administration.
64.21 	(m) According to federal requirements, establish procedures to be followed by 
64.22 	local welfare boards in creating citizen advisory committees, including procedures for 
64.23 	selection of committee members.
64.24 	(n) Allocate federal fiscal disallowances or sanctions which are based on quality 
64.25 	control error rates for the aid to families with dependent children program formerly 
64.26 	codified in sections 256.72 to 256.87, medical assistance, or food stamp program in the 
64.27 	following manner:
64.28 	(1) one-half of the total amount of the disallowance shall be borne by the county 
64.29 	boards responsible for administering the programs. For the medical assistance and the 
64.30 	AFDC program formerly codified in sections 256.72 to 256.87, disallowances shall be 
64.31 	shared by each county board in the same proportion as that county's expenditures for the 
64.32 	sanctioned program are to the total of all counties' expenditures for the AFDC program 
64.33 	formerly codified in sections 256.72 to 256.87, and medical assistance programs. For the 
64.34 	food stamp program, sanctions shall be shared by each county board, with 50 percent of 
64.35 	the sanction being distributed to each county in the same proportion as that county's 
64.36 	administrative costs for food stamps are to the total of all food stamp administrative costs 
65.1 	for all counties, and 50 percent of the sanctions being distributed to each county in the 
65.2 	same proportion as that county's value of food stamp benefits issued are to the total of 
65.3 	all benefits issued for all counties. Each county shall pay its share of the disallowance 
65.4 	to the state of Minnesota. When a county fails to pay the amount due hereunder, the 
65.5 	commissioner may deduct the amount from reimbursement otherwise due the county, or 
65.6 	the attorney general, upon the request of the commissioner, may institute civil action 
65.7 	to recover the amount due; and
65.8 	(2) notwithstanding the provisions of clause (1), if the disallowance results from 
65.9 	knowing noncompliance by one or more counties with a specific program instruction, and 
65.10 	that knowing noncompliance is a matter of official county board record, the commissioner 
65.11 	may require payment or recover from the county or counties, in the manner prescribed in 
65.12 	clause (1), an amount equal to the portion of the total disallowance which resulted from the 
65.13 	noncompliance, and may distribute the balance of the disallowance according to clause (1).
65.14 	(o) Develop and implement special projects that maximize reimbursements and 
65.15 	result in the recovery of money to the state. For the purpose of recovering state money, 
65.16 	the commissioner may enter into contracts with third parties. Any recoveries that result 
65.17 	from projects or contracts entered into under this paragraph shall be deposited in the 
65.18 	state treasury and credited to a special account until the balance in the account reaches 
65.19 	$1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be 
65.20 	transferred and credited to the general fund. All money in the account is appropriated to 
65.21 	the commissioner for the purposes of this paragraph.
65.22 	(p) Have the authority to make direct payments to facilities providing shelter 
65.23 	to women and their children according to section 256D.05, subdivision 3. Upon 
65.24 	the written request of a shelter facility that has been denied payments under section 
65.25 	256D.05, subdivision 3, the commissioner shall review all relevant evidence and make 
65.26 	a determination within 30 days of the request for review regarding issuance of direct 
65.27 	payments to the shelter facility. Failure to act within 30 days shall be considered a 
65.28 	determination not to issue direct payments.
65.29 	(q) Have the authority to establish and enforce the following county reporting 
65.30 	requirements:
65.31 	(1) the commissioner shall establish fiscal and statistical reporting requirements 
65.32 	necessary to account for the expenditure of funds allocated to counties for human 
65.33 	services programs. When establishing financial and statistical reporting requirements, the 
65.34 	commissioner shall evaluate all reports, in consultation with the counties, to determine if 
65.35 	the reports can be simplified or the number of reports can be reduced;
66.1 	(2) the county board shall submit monthly or quarterly reports to the department 
66.2 	as required by the commissioner. Monthly reports are due no later than 15 working days 
66.3 	after the end of the month. Quarterly reports are due no later than 30 calendar days after 
66.4 	the end of the quarter, unless the commissioner determines that the deadline must be 
66.5 	shortened to 20 calendar days to avoid jeopardizing compliance with federal deadlines 
66.6 	or risking a loss of federal funding. Only reports that are complete, legible, and in the 
66.7 	required format shall be accepted by the commissioner;
66.8 	(3) if the required reports are not received by the deadlines established in clause (2), 
66.9 	the commissioner may delay payments and withhold funds from the county board until 
66.10 	the next reporting period. When the report is needed to account for the use of federal 
66.11 	funds and the late report results in a reduction in federal funding, the commissioner shall 
66.12 	withhold from the county boards with late reports an amount equal to the reduction in 
66.13 	federal funding until full federal funding is received;
66.14 	(4) a county board that submits reports that are late, illegible, incomplete, or not 
66.15 	in the required format for two out of three consecutive reporting periods is considered 
66.16 	noncompliant. When a county board is found to be noncompliant, the commissioner 
66.17 	shall notify the county board of the reason the county board is considered noncompliant 
66.18 	and request that the county board develop a corrective action plan stating how the 
66.19 	county board plans to correct the problem. The corrective action plan must be submitted 
66.20 	to the commissioner within 45 days after the date the county board received notice 
66.21 	of noncompliance;
66.22 	(5) the final deadline for fiscal reports or amendments to fiscal reports is one year 
66.23 	after the date the report was originally due. If the commissioner does not receive a report 
66.24 	by the final deadline, the county board forfeits the funding associated with the report for 
66.25 	that reporting period and the county board must repay any funds associated with the 
66.26 	report received for that reporting period;
66.27 	(6) the commissioner may not delay payments, withhold funds, or require repayment 
66.28 	under clause (3) or (5) if the county demonstrates that the commissioner failed to 
66.29 	provide appropriate forms, guidelines, and technical assistance to enable the county to 
66.30 	comply with the requirements. If the county board disagrees with an action taken by the 
66.31 	commissioner under clause (3) or (5), the county board may appeal the action according 
66.32 	to sections 14.57 to 14.69; and
66.33 	(7) counties subject to withholding of funds under clause (3) or forfeiture or 
66.34 	repayment of funds under clause (5) shall not reduce or withhold benefits or services to 
66.35 	clients to cover costs incurred due to actions taken by the commissioner under clause 
66.36 	(3) or (5).
67.1 	(r) Allocate federal fiscal disallowances or sanctions for audit exceptions when 
67.2 	federal fiscal disallowances or sanctions are based on a statewide random sample for 
67.3 	the foster care program under title IV-E of the Social Security Act, United States Code, 
67.4 	title 42, in direct proportion to each county's title IV-E foster care maintenance claim 
67.5 	for that period.
67.6 	(s) Be responsible for ensuring the detection, prevention, investigation, and 
67.7 	resolution of fraudulent activities or behavior by applicants, recipients, and other 
67.8 	participants in the human services programs administered by the department.
67.9 	(t) Require county agencies to identify overpayments, establish claims, and utilize 
67.10 	all available and cost-beneficial methodologies to collect and recover these overpayments 
67.11 	in the human services programs administered by the department.
67.12 	(u) Have the authority to administer a drug rebate program for drugs purchased 
67.13 	pursuant to the prescription drug program established under section 256.955 after the 
67.14 	beneficiary's satisfaction of any deductible established in the program. The commissioner 
67.15 	shall require a rebate agreement from all manufacturers of covered drugs as defined in 
67.16 	section 256B.0625, subdivision 13. Rebate agreements for prescription drugs delivered on 
67.17 	or after July 1, 2002, must include rebates for individuals covered under the prescription 
67.18 	drug program who are under 65 years of age. For each drug, the amount of the rebate shall 
67.19 	be equal to the rebate as defined for purposes of the federal rebate program in United 
67.20 	States Code, title 42, section 1396r-8. The manufacturers must provide full payment 
67.21 	within 30 days of receipt of the state invoice for the rebate within the terms and conditions 
67.22 	used for the federal rebate program established pursuant to section 1927 of title XIX of 
67.23 	the Social Security Act. The manufacturers must provide the commissioner with any 
67.24 	information necessary to verify the rebate determined per drug. The rebate program shall 
67.25 	utilize the terms and conditions used for the federal rebate program established pursuant to 
67.26 	section 1927 of title XIX of the Social Security Act.
67.27 	(v) Have the authority to administer the federal drug rebate program for drugs 
67.28 	purchased under the medical assistance program as allowed by section 1927 of title XIX 
67.29 	of the Social Security Act and according to the terms and conditions of section 1927. 
67.30 	Rebates shall be collected for all drugs that have been dispensed or administered in an 
67.31 	outpatient setting and that are from manufacturers who have signed a rebate agreement 
67.32 	with the United States Department of Health and Human Services.
67.33 	(w) Have the authority to administer a supplemental drug rebate program for drugs 
67.34 	purchased under the medical assistance program. The commissioner may enter into 
67.35 	supplemental rebate contracts with pharmaceutical manufacturers and may require prior 
67.36 	authorization for drugs that are from manufacturers that have not signed a supplemental 
68.1 	rebate contract. Prior authorization of drugs shall be subject to the provisions of section 
68.2 	256B.0625, subdivision 13.
68.3 	(x) Operate the department's communication systems account established in Laws 
68.4 	1993, First Special Session chapter 1, article 1, section 2, subdivision 2, to manage shared 
68.5 	communication costs necessary for the operation of the programs the commissioner 
68.6 	supervises. A communications account may also be established for each regional 
68.7 	treatment center which operates communications systems. Each account must be used 
68.8 	to manage shared communication costs necessary for the operations of the programs the 
68.9 	commissioner supervises. The commissioner may distribute the costs of operating and 
68.10 	maintaining communication systems to participants in a manner that reflects actual usage. 
68.11 	Costs may include acquisition, licensing, insurance, maintenance, repair, staff time and 
68.12 	other costs as determined by the commissioner. Nonprofit organizations and state, county, 
68.13 	and local government agencies involved in the operation of programs the commissioner 
68.14 	supervises may participate in the use of the department's communications technology and 
68.15 	share in the cost of operation. The commissioner may accept on behalf of the state any 
68.16 	gift, bequest, devise or personal property of any kind, or money tendered to the state for 
68.17 	any lawful purpose pertaining to the communication activities of the department. Any 
68.18 	money received for this purpose must be deposited in the department's communication 
68.19 	systems accounts. Money collected by the commissioner for the use of communication 
68.20 	systems must be deposited in the state communication systems account and is appropriated 
68.21 	to the commissioner for purposes of this section.
68.22 	(y) Receive any federal matching money that is made available through the medical 
68.23 	assistance program for the consumer satisfaction survey. Any federal money received for 
68.24 	the survey is appropriated to the commissioner for this purpose. The commissioner may 
68.25 	expend the federal money received for the consumer satisfaction survey in either year of 
68.26 	the biennium.
68.27 	(z) Designate community information and referral call centers and incorporate 
68.28 	cost reimbursement claims from the designated community information and referral 
68.29 	call centers into the federal cost reimbursement claiming processes of the department 
68.30 	according to federal law, rule, and regulations. Existing information and referral centers 
68.31 	provided by Greater Twin Cities United Way or existing call centers for which Greater 
68.32 	Twin Cities United Way has legal authority to represent, shall be included in these 
68.33 	designations upon review by the commissioner and assurance that these services are 
68.34 	accredited and in compliance with national standards. Any reimbursement is appropriated 
68.35 	to the commissioner and all designated information and referral centers shall receive 
68.36 	payments according to normal department schedules established by the commissioner 
69.1 	upon final approval of allocation methodologies from the United States Department of 
69.2 	Health and Human Services Division of Cost Allocation or other appropriate authorities.
69.3 	(aa) Develop recommended standards for foster care homes that address the 
69.4 	components of specialized therapeutic services to be provided by foster care homes with 
69.5 	those services.
69.6 	(bb) Authorize the method of payment to or from the department as part of the 
69.7 	human services programs administered by the department. This authorization includes the 
69.8 	receipt or disbursement of funds held by the department in a fiduciary capacity as part of 
69.9 	the human services programs administered by the department.
69.10 	(cc) Have the authority to administer a drug rebate program for drugs purchased for 
69.11 	persons eligible for general assistance medical care under section 256D.03, subdivision 3. 
69.12 	For manufacturers that agree to participate in the general assistance medical care rebate 
69.13 	program, the commissioner shall enter into a rebate agreement for covered drugs as 
69.14 	defined in section 256B.0625, subdivisions 13 and 13d. For each drug, the amount of the 
69.15 	rebate shall be equal to the rebate as defined for purposes of the federal rebate program in 
69.16 	United States Code, title 42, section 1396r-8. The manufacturers must provide payment 
69.17 	within the terms and conditions used for the federal rebate program established under 
69.18 	section 1927 of title XIX of the Social Security Act. The rebate program shall utilize 
69.19 	the terms and conditions used for the federal rebate program established under section 
69.20 	1927 of title XIX of the Social Security Act.
69.21 	Effective January 1, 2006, drug coverage under general assistance medical care shall 
69.22 	be limited to those prescription drugs that:
69.23 	(1) are covered under the medical assistance program as described in section 
69.24 	256B.0625, subdivisions 13 and 13d; and
69.25 	(2) are provided by manufacturers that have fully executed general assistance 
69.26 	medical care rebate agreements with the commissioner and comply with such agreements. 
69.27 	Prescription drug coverage under general assistance medical care shall conform to 
69.28 	coverage under the medical assistance program according to section 256B.0625, 
69.29 	subdivisions 13 to 13g.
69.30 	The rebate revenues collected under the drug rebate program are deposited in the 
69.31 	general fund.

69.32 	Sec. 3. Minnesota Statutes 2007 Supplement, section 256J.20, subdivision 3, is 
69.33 	amended to read:
69.34 		Subd. 3.Other property limitations. To be eligible for MFIP, the equity value of 
69.35 	all nonexcluded real and personal property of the assistance unit must not exceed $2,000 
70.1 	for applicants and $5,000 for ongoing participants. The value of assets in clauses (1) to 
70.2 	(19) must be excluded when determining the equity value of real and personal property:
70.3 	(1) a licensed vehicle up to a loan value of less than or equal to $15,000. If the 
70.4 	assistance unit owns more than one licensed vehicle, the county agency shall determine the 
70.5 	loan value of all additional vehicles and exclude the combined loan value of less than or 
70.6 	equal to $7,500. The county agency shall apply any excess loan value as if it were equity 
70.7 	value to the asset limit described in this section, excluding: (i) the value of one vehicle 
70.8 	per physically disabled person when the vehicle is needed to transport the disabled unit 
70.9 	member; this exclusion does not apply to mentally disabled people; (ii) the value of special 
70.10 	equipment for a disabled member of the assistance unit; and (iii) any vehicle used for 
70.11 	long-distance travel, other than daily commuting, for the employment of a unit member.
70.12 	To establish the loan value of vehicles, a county agency must use the N.A.D.A. 
70.13 	Official Used Car Guide, Midwest Edition, for newer model cars. When a vehicle is not 
70.14 	listed in the guidebook, or when the applicant or participant disputes the loan value listed 
70.15 	in the guidebook as unreasonable given the condition of the particular vehicle, the county 
70.16 	agency may require the applicant or participant document the loan value by securing a 
70.17 	written statement from a motor vehicle dealer licensed under section 168.27, stating 
70.18 	the amount that the dealer would pay to purchase the vehicle. The county agency shall 
70.19 	reimburse the applicant or participant for the cost of a written statement that documents 
70.20 	a lower loan value; 
70.21 	(2) the value of life insurance policies for members of the assistance unit;
70.22 	(3) one burial plot per member of an assistance unit;
70.23 	(4) the value of personal property needed to produce earned income, including 
70.24 	tools, implements, farm animals, inventory, business loans, business checking and 
70.25 	savings accounts used at least annually and used exclusively for the operation of a 
70.26 	self-employment business, and any motor vehicles if at least 50 percent of the vehicle's use 
70.27 	is to produce income and if the vehicles are essential for the self-employment business;
70.28 	(5) the value of personal property not otherwise specified which is commonly 
70.29 	used by household members in day-to-day living such as clothing, necessary household 
70.30 	furniture, equipment, and other basic maintenance items essential for daily living;
70.31 	(6) the value of real and personal property owned by a recipient of Supplemental 
70.32 	Security Income or Minnesota supplemental aid;
70.33 	(7) the value of corrective payments, but only for the month in which the payment 
70.34 	is received and for the following month;
70.35 	(8) a mobile home or other vehicle used by an applicant or participant as the 
70.36 	applicant's or participant's home;
71.1 	(9) money in a separate escrow account that is needed to pay real estate taxes or 
71.2 	insurance and that is used for this purpose;
71.3 	(10) money held in escrow to cover employee FICA, employee tax withholding, 
71.4 	sales tax withholding, employee worker compensation, business insurance, property rental, 
71.5 	property taxes, and other costs that are paid at least annually, but less often than monthly;
71.6 	(11) monthly assistance payments for the current month's or short-term emergency 
71.7 	needs under section 256J.626, subdivision 2; 
71.8 	(12) the value of school loans, grants, or scholarships for the period they are 
71.9 	intended to cover;
71.10 	(13) payments listed in section 256J.21, subdivision 2, clause (9), which are held 
71.11 	in escrow for a period not to exceed three months to replace or repair personal or real 
71.12 	property; 
71.13 	(14) income received in a budget month through the end of the payment month;
71.14 	(15) savings from earned income of a minor child or a minor parent that are set aside 
71.15 	in a separate account designated specifically for future education or employment costs;
71.16 	(16) the federal earned income credit, Minnesota working family credit, state and 
71.17 	federal income tax refunds, state homeowners and renters credits under chapter 290A, 
71.18 	property tax rebates and other federal or state tax rebates in the month received and the 
71.19 	following month;
71.20 	(17) payments excluded under federal law as long as those payments are held in a 
71.21 	separate account from any nonexcluded funds;
71.22 	(18) the assets of children ineligible to receive MFIP benefits because foster care or 
71.23 	adoption assistance payments are made on their behalf; and
71.24 	(19) the assets of persons whose income is excluded under section 256J.21, 
71.25 	subdivision 2, clause (43). 

71.26 	Sec. 4. Minnesota Statutes 2006, section 256J.24, subdivision 5, is amended to read:
71.27 		Subd. 5.MFIP transitional standard. The MFIP transitional standard is based 
71.28 	on the number of persons in the assistance unit eligible for both food and cash assistance 
71.29 	unless the restrictions in subdivision 6 on the birth of a child apply. The following table 
71.30 	represents the transitional standards effective October 1, 2004 2007.

71.31
71.32	Number of Eligible 
People
	Transitional 
Standard
	Cash Portion
	Food Portion

71.33	1
	$379 $391:
	$250
	$129 $141
	
71.34	2
	$675 $698:
	$437
	$238 $261
	
71.35	3
	$876 $910:
	$532
	$344 $378
	
72.1	4
	$1,036 $1,091:
	$621
	$415 $470
	
72.2	5
	$1,180 $1,245:
	$697
	$483 $548
	
72.3	6
	$1,350 $1,425:
	$773
	$577 $652
	
72.4	7
	$1,472 $1,553:
	$850
	$622 $703
	
72.5	8
	$1,623 $1,713:
	$916
	$707 $797
	
72.6	9
	$1,772 $1,871:
	$980
	$792 $891
	
72.7	10
	$1,915 $2,024:
	$1,035
	$880 $989
	
72.8	over 10
	add $142 $151:
	$53
	$89 $98
	
72.9	per additional member.
			
72.10 	The commissioner shall annually publish in the State Register the transitional 
72.11 	standard for an assistance unit sizes 1 to 10 including a breakdown of the cash and food 
72.12 	portions.

72.13 	Sec. 5. Minnesota Statutes 2006, section 256J.425, subdivision 1, is amended to read:
72.14 		Subdivision 1.Eligibility. (a) To be eligible for a hardship extension, a participant 
72.15 	in an assistance unit subject to the time limit under section 256J.42, subdivision 1, must 
72.16 	be in compliance in the participant's 60th counted month. For purposes of determining 
72.17 	eligibility for a hardship extension, a participant is in compliance in any month that the 
72.18 	participant has not been sanctioned. In order to maintain eligibility for any of the hardship 
72.19 	extension categories a participant shall develop and comply with either an employment 
72.20 	plan or a family stabilization services plan, whichever is appropriate.
72.21 	(b) If one participant in a two-parent assistance unit is determined to be ineligible for 
72.22 	a hardship extension, the county shall give the assistance unit the option of disqualifying 
72.23 	the ineligible participant from MFIP. In that case, the assistance unit shall be treated as a 
72.24 	one-parent assistance unit and the assistance unit's MFIP grant shall be calculated using 
72.25 	the shared household standard under section 256J.08, subdivision 82a. 
72.26 	(c) Prior to denying an extension, the county must review the sanction status and 
72.27 	determine whether the sanction is appropriate or if good cause exists under section 256J.57. 
72.28 	If the sanction was inappropriately applied or the participant is granted a good cause 
72.29 	exception before the end of month 60, the participant shall be considered for an extension. 

72.30 	Sec. 6. Minnesota Statutes 2007 Supplement, section 256J.49, subdivision 13, is 
72.31 	amended to read:
72.32 		Subd. 13.Work activity. "Work activity" means any activity in a participant's 
72.33 	approved employment plan that leads to employment. For purposes of the MFIP program, 
72.34 	this includes activities that meet the definition of work activity under the participation 
72.35 	requirements of TANF. Work activity includes:
73.1 	(1) unsubsidized employment, including work study and paid apprenticeships or 
73.2 	internships;
73.3 	(2) subsidized private sector or public sector employment, including grant diversion 
73.4 	as specified in section 256J.69, on-the-job training as specified in section 256J.66, 
73.5 	the self-employment investment demonstration program (SEID) as specified in section 
73.6 	256J.65, paid work experience, and supported work when a wage subsidy is provided; 
73.7 	(3) unpaid work experience, including community service, volunteer work, 
73.8 	the community work experience program as specified in section 256J.67, unpaid 
73.9 	apprenticeships or internships, and supported work when a wage subsidy is not provided. 
73.10 	Unpaid work experience is only an option if the participant has been unable to obtain or 
73.11 	maintain paid employment in the competitive labor market, and no paid work experience 
73.12 	programs are available to the participant. Unless Prior to placing a participant in unpaid 
73.13 	work, the county must inform the participant that the participant will be notified if a 
73.14 	paid work experience or supported work position becomes available. If  a participant 
73.15 	consents in writing to participatingparticipate in unpaid work experience, the participant's 
73.16 	employment plan may only include unpaid work experience if including the unpaid work 
73.17 	experience in the plan will meet the following criteria:
73.18 	(i) the unpaid work experience will provide the participant specific skills or 
73.19 	experience that cannot be obtained through other work activity options where the 
73.20 	participant resides or is willing to reside; and 
73.21 	(ii) the skills or experience gained through the unpaid work experience will result 
73.22 	in higher wages for the participant than the participant could earn without the unpaid 
73.23 	work experience;
73.24 	(4) job search including job readiness assistance, job clubs, job placement, 
73.25 	job-related counseling, and job retention services;
73.26 	(5) job readiness education, including English as a second language (ESL) or 
73.27 	functional work literacy classes as limited by the provisions of section 256J.531, 
73.28 	subdivision 2, general educational development (GED) course work, high school 
73.29 	completion, and adult basic education as limited by the provisions of section 256J.531, 
73.30 	subdivision 1; 
73.31 	(6) job skills training directly related to employment, including education and 
73.32 	training that can reasonably be expected to lead to employment, as limited by the 
73.33 	provisions of section 256J.53; 
73.34 	(7) providing child care services to a participant who is working in a community 
73.35 	service program;
74.1 	(8) activities included in the employment plan that is developed under section 
74.2 	256J.521, subdivision 3; and 
74.3 	(9) preemployment activities including chemical and mental health assessments, 
74.4 	treatment, and services; learning disabilities services; child protective services; family 
74.5 	stabilization services; or other programs designed to enhance employability.

74.6 	Sec. 7. Minnesota Statutes 2006, section 256J.521, subdivision 4, is amended to read:
74.7 		Subd. 4.Self-employment. (a) Self-employment activities may be included in an 
74.8 	employment plan contingent on the development of a business plan which establishes a 
74.9 	timetable and earning goals that will result in the participant exiting MFIP assistance. 
74.10 	Business plans must be developed with assistance from an individual or organization with 
74.11 	expertise in small business as approved by the job counselor.
74.12 	(b) Participants with an approved plan that includes self-employment must meet 
74.13 	the participation requirements in section 256J.55, subdivision 1. Only hours where 
74.14 	the participant earns at least minimum wage shall be counted toward the requirement. 
74.15 	Additional activities and hours necessary to meet the participation requirements in section 
74.16 	256J.55, subdivision 1, must be included in the employment plan. 
74.17 	(c) Employment plans which include self-employment activities must be reviewed 
74.18 	every three months. Participants who fail, without good cause, to make satisfactory 
74.19 	progress as established in the business plan must revise the employment plan to replace 
74.20 	the self-employment with other approved work activities.
74.21 	(d) The requirements of this subdivision may be waived for participants who are 
74.22 	enrolled in the self-employment investment demonstration program (SEID) under section 
74.23 	256J.65, and who make satisfactory progress as determined by the job counselor and 
74.24 	the SEID provider.

74.25 	Sec. 8. Minnesota Statutes 2006, section 256J.54, subdivision 2, is amended to read:
74.26 		Subd. 2.Responsibility for assessment and employment plan. For caregivers 
74.27 	who are under age 18 without a high school diploma or its equivalent, the assessment 
74.28 	under subdivision 1 and the employment plan under subdivision 3 must be completed 
74.29 	by the social services agency under section 257.33. For caregivers who are age 18 or 
74.30 	19 without a high school diploma or its equivalent who choose to have an employment 
74.31 	plan with an education option under subdivision 3, the assessment under subdivision 1 
74.32 	and the employment plan under subdivision 3 must be completed by the job counselor 
74.33 	or, at county option, by the social services agency under section 257.33. Upon reaching 
74.34 	age 18 or 19 a caregiver who received social services under section 257.33 and is without 
75.1 	a high school diploma or its equivalent has the option to choose whether to continue 
75.2 	receiving services under the caregiver's plan from the social services agency or to utilize 
75.3 	an MFIP employment and training service provider. The social services agency or the job 
75.4 	counselor shall consult with representatives of educational agencies that are required to 
75.5 	assist in developing educational plans under section 124D.331 the participant's school in 
75.6 	developing the educational plan. 

75.7 	Sec. 9. Minnesota Statutes 2006, section 256J.54, subdivision 5, is amended to read:
75.8 		Subd. 5.School attendance required. (a) Notwithstanding the provisions of 
75.9 	section 256J.56, Minor parents, or 18- or 19-year-old parents without a high school 
75.10 	diploma or its equivalent who chooses an employment plan with an education option 
75.11 	must attend school unless: 
75.12 	(1) transportation services needed to enable the caregiver to attend school are not 
75.13 	available;
75.14 	(2) appropriate child care services needed to enable the caregiver to attend school 
75.15 	are not available;
75.16 	(3) the caregiver is ill or incapacitated seriously enough to prevent attendance at 
75.17 	school; or
75.18 	(4) the caregiver is needed in the home because of the illness or incapacity of 
75.19 	another member of the household. This includes a caregiver of a child who is younger 
75.20 	than six weeks of age.
75.21 	(b) The caregiver must be enrolled in a secondary school and meeting the school's 
75.22 	attendance requirements. The county, social service agency, or job counselor must verify 
75.23 	at least once per quarter that the caregiver is meeting the school's attendance requirements. 
75.24 	An enrolled caregiver is considered to be meeting the attendance requirements when the 
75.25 	school is not in regular session, including during holiday and summer breaks.

75.26 	Sec. 10. Minnesota Statutes 2006, section 256J.545, is amended to read:
75.27 	256J.545 FAMILY VIOLENCE WAIVER CRITERIA.
75.28 	(a) In order to qualify for a family violence waiver, an individual must provide 
75.29 	documentation of past or current family violence which may prevent the individual 
75.30 	from participating in certain employment activities. A claim of family violence must 
75.31 	be documented by the applicant or participant providing a sworn statement which is 
75.32 	supported by collateral documentation.
75.33 	(b) Collateral documentation may consist of The following items may be considered 
75.34 	acceptable documentation or verification of family violence:
76.1 	(1) police, government agency, or court records;
76.2 	(2) a statement from a battered women's shelter staff with knowledge of the 
76.3 	circumstances or credible evidence that supports the sworn statement;
76.4 	(3) a statement from a sexual assault or domestic violence advocate with knowledge 
76.5 	of the circumstances or credible evidence that supports the sworn statement; or
76.6 	(4) a statement from professionals from whom the applicant or recipient has sought 
76.7 	assistance for the abuse; or.
76.8 	(5) a sworn statement from any other individual with knowledge of circumstances or 
76.9 	credible evidence that supports the sworn statement.
76.10 	(c) A claim of family violence may also be documented by a sworn statement from 
76.11 	the applicant or participant and a sworn statement from any other person with knowledge 
76.12 	of the circumstances or credible evidence that supports the client's statement.

76.13 	Sec. 11. Minnesota Statutes 2007 Supplement, section 256J.626, subdivision 3, is 
76.14 	amended to read:
76.15 		Subd. 3.Eligibility for services. Families with a minor child, a pregnant woman, 
76.16 	or a noncustodial parent of a minor child receiving assistance, with incomes below 200 
76.17 	percent of the federal poverty guideline for a family of the applicable size, are eligible for 
76.18 	services funded under the consolidated fund. Counties and tribes must give priority to 
76.19 	families currently receiving MFIP, the diversionary work program, or family stabilization 
76.20 	services, and families at risk of receiving MFIP or diversionary work program. A county 
76.21 	or tribe shall not impose a residency requirement on families, except for the residency 
76.22 	requirement under section 256J.12.

76.23 	Sec. 12. Minnesota Statutes 2007 Supplement, section 256J.626, subdivision 7, 
76.24 	is amended to read:
76.25 		Subd. 7.Performance base funds. (a) BeginningFor calendar year 2008 2009 
76.26 	and yearly thereafter, each county and tribe will be allocated 95 percent of their initial 
76.27 	calendar year allocation. Counties and tribes will be allocated additional funds based on 
76.28 	performance as follows:
76.29 	(1) for calendar year 2008 and yearly thereafter, a county or tribe that achieves a 
76.30 	50 percent MFIP TANF participation rate or a five percentage point improvement over 
76.31 	the previous year's MFIP TANF participation rate under section 256J.751, subdivision 2, 
76.32 	clause (7), as averaged across the four quarterly measurements 12 consecutive months for 
76.33 	the most recent year for which the measurements are available, will receive an additional 
76.34 	allocation equal to 2.5 percent of its initial allocation; and
77.1 	(2) for calendar years 2005 and thereafter, a county or tribe that performs above the 
77.2 	top of its annualized range of expected performance on the three-year self-support index 
77.3 	under section 256J.751, subdivision 2, clause (6), will receive an additional allocation 
77.4 	equal to five percent of its initial allocation; and
77.5 	(3) for calendar years 2005 and thereafter, a county or tribe that performs within or 
77.6 	above its range of expected performance on the annualized three-year self-support index 
77.7 	under section 256J.751, subdivision 2, clause (6), will receive an additional allocation 
77.8 	equal to 2.5 percent of its initial allocation; and
77.9 	(4) for calendar years 2008 and thereafter, (3) a county or tribe that does not achieve 
77.10 	a 50 percent MFIP TANF participation rate or a five percentage point improvement over 
77.11 	the previous year's MFIP TANF participation rate under section 256J.751, subdivision 2, 
77.12 	clause (7), as averaged across the four quarterly measurements 12 consecutive months
77.13 	for the most recent year for which the measurements are available, will not receive 
77.14 	an additional 2.5 percent of its initial allocation until after negotiating a multiyear 
77.15 	improvement plan with the commissioner; or 
77.16 	(5) for calendar years 2008 and thereafter, (4) a county or tribe that does not 
77.17 	perform within or above its range of expected performance on the annualized three-year 
77.18 	self-support index under section 256J.751, subdivision 2, clause (6), will not receive an 
77.19 	additional allocation equal to 2.5 percent of its initial allocation until after negotiating a 
77.20 	multiyear improvement plan with the commissioner.
77.21 	(b) For calendar year 2009 and yearly thereafter, performance-based funds for a 
77.22 	federally approved tribal TANF program in which the state and tribe have in place a 
77.23 	contract under section 256.01, addressing consolidated funding, will be allocated as 
77.24 	follows:
77.25 	(1) for calendar year 2006 and yearly thereafter, a tribe that achieves the participation 
77.26 	rate approved in its federal TANF plan using the average of four quarterly measurements
77.27 	12 consecutive months for the most recent year for which the measurements are available, 
77.28 	will receive an additional allocation equal to 2.5 percent of its initial allocation; and
77.29 	(2) for calendar years 2006 and thereafter, a tribe that performs above the top of its 
77.30 	annualized range of expected performance on the three-year self-support index under 
77.31 	section 256J.751, subdivision 2, clause (6), will receive an additional allocation equal 
77.32 	to five percent of its initial allocation; or
77.33 	(3) for calendar years 2006 and thereafter, a tribe that performs within or above its 
77.34 	range of expected performance on the annualized three-year self-support index under 
77.35 	section 256J.751, subdivision 2, clause (6), will receive an additional allocation equal 
77.36 	to 2.5 percent of its initial allocation; or 
78.1 	(4) for calendar year 2008 and yearly thereafter, (3) a tribe that does not achieve the 
78.2 	participation rate approved in its federal TANF plan using the average of four quarterly
78.3 	measurements 12 consecutive months for the most recent year for which the measurements 
78.4 	are available, will not receive an additional allocation equal to 2.5 percent of its initial 
78.5 	allocation until after negotiating a multiyear improvement plan with the commissioner; or 
78.6 	(5) for calendar year 2008 and yearly thereafter, (4) a tribe that does not perform 
78.7 	within or above its range of expected performance on the annualized three-year 
78.8 	self-support index under section 256J.751, subdivision 2, clause (6), will not receive an 
78.9 	additional allocation equal to 2.5 percent until after negotiating a multiyear improvement 
78.10 	plan with the commissioner.
78.11 	(c) Funds remaining unallocated after the performance-based allocations in 
78.12 	paragraph (a) are available to the commissioner for innovation projects under subdivision 
78.13 	5.
78.14 	(d) (1) If available funds are insufficient to meet county and tribal allocations 
78.15 	under paragraph (a), the commissioner may make available for allocation funds that are 
78.16 	unobligated and available from the innovation projects through the end of the current 
78.17 	biennium.
78.18 	(2) If after the application of clause (1) funds remain insufficient to meet county and 
78.19 	tribal allocations under paragraph (a), the commissioner must proportionally reduce the 
78.20 	allocation of each county and tribe with respect to their maximum allocation available 
78.21 	under paragraph (a).

78.22 	Sec. 13. Minnesota Statutes 2007 Supplement, section 256J.95, subdivision 3, is 
78.23 	amended to read:
78.24 		Subd. 3.Eligibility for diversionary work program. (a) Except for the categories 
78.25 	of family units listed below, all family units who apply for cash benefits and who 
78.26 	meet MFIP eligibility as required in sections 256J.11 to 256J.15 are eligible and must 
78.27 	participate in the diversionary work program. Family units that are not eligible for the 
78.28 	diversionary work program include:
78.29 	(1) child only cases;
78.30 	(2) a single-parent family unit that includes a child under 12 weeks of age. A parent 
78.31 	is eligible for this exception once in a parent's lifetime and is not eligible if the parent 
78.32 	has already used the previously allowed child under age one exemption from MFIP 
78.33 	employment services;
78.34 	(3) a minor parent without a high school diploma or its equivalent;
79.1 	(4) an 18- or 19-year-old caregiver without a high school diploma or its equivalent 
79.2 	who chooses to have an employment plan with an education option;
79.3 	(5) a caregiver age 60 or over;
79.4 	(6) family units with a caregiver who received DWP benefits in the 12 months prior 
79.5 	to the month the family applied for DWP, except as provided in paragraph (c);
79.6 	(7) family units with a caregiver who received MFIP within the 12 months prior to 
79.7 	the month the family unit applied for DWP;
79.8 	(8) a family unit with a caregiver who received 60 or more months of TANF 
79.9 	assistance; 
79.10 	(9) a family unit with a caregiver who is disqualified from DWP or MFIP due to 
79.11 	fraud; and
79.12 	(10) refugees and asylees as defined in Code of Federal Regulations, title 45, chapter 
79.13 	IV part 400, subpart d, section 444.43 400.43, who arrived in the United States in the 12 
79.14 	months prior to the date of application for family cash assistance.
79.15 	(b) A two-parent family must participate in DWP unless both caregivers meet the 
79.16 	criteria for an exception under paragraph (a), clauses (1) through (5), or the family unit 
79.17 	includes a parent who meets the criteria in paragraph (a), clause (6), (7), (8), or (9), or (10).
79.18 	(c) Once DWP eligibility is determined, the four months run consecutively. If a 
79.19 	participant leaves the program for any reason and reapplies during the four-month period, 
79.20 	the county must redetermine eligibility for DWP.

79.21 	Sec. 14. Laws 2007, chapter 147, article 2, section 21, the effective date, is amended to 
79.22 	read:

79.23 	EFFECTIVE DATE. Subdivision 1 is effective February 1, 2008, and subdivision 
79.24 	2 is effective May 1, 2008 March 1, 2009.