1.1 	A bill for an act
1.2 	relating to the state budget; balancing proposed general fund spending and 
1.3 	anticipated general fund revenue; modifying certain payment schedules to 
1.4 	improve cash flow; making reductions in appropriations for E-12 education, 
1.5 	higher education, environment and natural resources, energy and commerce, 
1.6 	agriculture, economic development, transportation, public safety, state 
1.7 	government, human services, and health; modifying calculation of state tax aids 
1.8 	and credits; providing for deposit of certain receipts in the special revenue fund 
1.9 	rather than the general fund; making changes to health and human services policy 
1.10 	provisions including state health care programs, continuing care, children and 
1.11 	family services, health care reform, Department of Health, public health, health 
1.12 	plans; increasing fees and surcharges; requiring reports; making supplemental 
1.13 	and contingent appropriations and reductions for the Departments of Health 
1.14 	and Human Services and other health-related boards and councils;amending 
1.15 	Minnesota Statutes 2008, sections 3.9741, subdivision 2; 8.15, subdivision 
1.16 	3; 13.03, subdivision 10; 13.3806, subdivision 13; 16C.23, subdivision 6; 
1.17 	62D.08, by adding a subdivision; 62J.692, subdivision 4; 62Q.19, subdivision 
1.18 	1; 103B.101, subdivision 9; 103I.681, subdivision 11; 116J.551, subdivision 1; 
1.19 	123B.75, subdivisions 5, 9, by adding a subdivision; 126C.48, subdivision 7; 
1.20 	127A.441; 127A.45, subdivisions 2, 3, 13, by adding a subdivision; 127A.46; 
1.21 	144.05, by adding a subdivision; 144.226, subdivision 3; 144.293, subdivision 
1.22 	4; 144.603; 144.605, subdivisions 2, 3, by adding a subdivision; 144.608, 
1.23 	subdivision 1; 144.651, subdivision 2; 144.9504, by adding a subdivision; 
1.24 	144A.51, subdivision 5; 144D.03, subdivision 2; 144D.04, subdivision 2; 
1.25 	144E.37; 144G.06; 152.126, as amended; 190.32; 214.40, subdivision 7; 246.18, 
1.26 	by adding a subdivision; 254B.01, subdivision 2; 254B.02, subdivisions 1, 
1.27 	5; 254B.03, subdivision 4; 254B.05, subdivision 4; 254B.06, subdivision 2; 
1.28 	254B.09, subdivision 8; 256.01, by adding a subdivision; 256.9657, subdivisions 
1.29 	2, 3, 3a; 256.969, subdivisions 21, 26, by adding a subdivision; 256B.04, 
1.30 	subdivision 14a; 256B.055, by adding a subdivision; 256B.056, subdivisions 
1.31 	3, 4; 256B.057, subdivision 9; 256B.0625, subdivisions 8, 8a, 8b, 18a, 22, 
1.32 	31, by adding subdivisions; 256B.0631, subdivisions 1, 3; 256B.0644, as 
1.33 	amended; 256B.0915, by adding a subdivision; 256B.19, subdivision 1c; 
1.34 	256B.5012, by adding a subdivision; 256B.69, subdivisions 20, as amended, 
1.35 	27, by adding subdivisions; 256B.692, subdivision 1; 256B.76, subdivisions 
1.36 	2, 4; 256D.03, subdivision 3b; 256D.0515; 256I.05, by adding a subdivision; 
1.37 	256J.24, subdivision 6; 256L.07, by adding a subdivision; 256L.11, subdivision 
1.38 	6; 256L.12, subdivisions 5, 9, by adding a subdivision; 256L.15, subdivision 1; 
1.39 	257.69, subdivision 2; 260C.331, subdivision 6; 273.1384, subdivision 6, as 
2.1 	added; 276.112; 289A.60, by adding a subdivision; 299C.48; 299E.02; 446A.086, 
2.2 	subdivision 2, as amended; 469.177, subdivision 11; 517.08, subdivision 
2.3 	1c, as amended; 518.165, subdivision 3; 609.3241; 611.20, subdivision 3; 
2.4 	Minnesota Statutes 2009 Supplement, sections 123B.54; 137.025, subdivision 
2.5 	1; 157.16, subdivision 3; 252.27, subdivision 2a; 256.969, subdivisions 2b, 3a; 
2.6 	256.975, subdivision 7; 256B.056, subdivision 3c; 256B.0625, subdivision 13h; 
2.7 	256B.0659, subdivision 11; 256B.0911, subdivision 1a; 256B.441, subdivision 
2.8 	55; 256B.69, subdivisions 5a, 23; 256B.76, subdivision 1; 256B.766; 256D.03, 
2.9 	subdivision 3, as amended; 256J.425, subdivision 3; 256J.621; 256L.03, 
2.10 	subdivision 5; 270.97; 289A.20, subdivision 4; 327.15, subdivision 3; 517.08, 
2.11 	subdivision 1b; Laws 1994, chapter 531, section 1; Laws 2005, First Special 
2.12 	Session chapter 4, article 8, section 66, as amended; Laws 2009, chapter 79, 
2.13 	article 3, section 18; article 5, sections 17; 18; 22; 75, subdivision 1; 78, 
2.14 	subdivision 5; article 8, sections 2; 51; 84; article 13, sections 3, subdivisions 1, 
2.15 	as amended, 3, as amended, 4, as amended, 8, as amended; 4, subdivision 4, as 
2.16 	amended; 5, subdivision 8, as amended; Laws 2009, chapter 96, article 1, section 
2.17 	24, subdivisions 2, 4, 5, 6, 7; article 2, section 67, subdivisions 2, 3, 4, 7, 9; article 
2.18 	3, section 21, subdivisions 2, 4, 5; article 4, section 12, subdivisions 2, 3, 4, 6; 
2.19 	article 5, section 13, subdivisions 4, 6, 7, 9; article 6, section 11, subdivisions 2, 
2.20 	3, 4, 6, 7, 8, 9, 12; article 7, section 3, subdivision 2; Laws 2009, chapter 173, 
2.21 	article 1, section 17; Laws 2010, chapter 200, article 1, sections 12, subdivision 
2.22 	5; 16; 21; article 2, section 2, subdivisions 1, 5, 8; Laws 2010, chapter 215, article 
2.23 	3, section 3, subdivision 6; article 13, section 6; proposing coding for new law in 
2.24 	Minnesota Statutes, chapters 62D; 62E; 62Q; 137; 144; 144D; 246; 254B; 256; 
2.25 	256B; 477A; repealing Minnesota Statutes 2008, sections 144.607; 254B.02, 
2.26 	subdivisions 2, 3, 4; 254B.09, subdivisions 4, 5, 7; 256D.03, subdivisions 3, 3a, 
2.27 	5, 6, 7, 8; Laws 2009, chapter 79, article 7, section 26, subdivision 3; Laws 2010, 
2.28 	chapter 200, article 1, sections 12, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 18; 19.
2.29 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.30 	ARTICLE 1
2.31 	SUMMARY

2.32	Section 1. GENERAL FUND SUMMARY.
 	
2.33 	The amounts shown in this section summarize general fund direct and open 
2.34 	appropriations, and transfers into the general fund from other funds, made in articles 2 to 
2.35 	14, after forecast adjustments and after voiding certain allotment reductions.

2.36			2010
		2011
		Total
	
2.37	E-12 Education
	$
	(1,069,361,000)
	$
	(893,834,000)
	$
	(1,963,195,000)
	
2.38	Higher Education
		(77,000)
		(100,077,000)
		(100,154,000)
	
2.39
2.40	Environment and Natural 
Resources
		(1,571,000)
		(1,564,000)
		(3,135,000)
	
2.41	Energy
		(247,000)
		(247,000)
		(494,000)
	
2.42	Agriculture
		(493,000)
		(492,000)
		(985,000)
	
2.43	Economic Development
		(489,000)
		(745,000)
		(1,234,000)
	
2.44	Transportation
		(1,649,000)
		(11,649,000)
		(13,298,000)
	
2.45	Public Safety
		(79,000)
		(79,000)
		(158,000)
	
2.46	State Government
		(1,694,000)
		(15,820,000)
		(17,514,000)
	
2.47	Health and Human Services
		(74,704,000)
		(83,052,000)
		(157,756,000)
	
3.1	Tax Aids and Credits
		(103,986,000)
		(385,495,000)
		(489,481,000)
	
3.2	Subtotal of Appropriations
		(1,254,530,000)
		(1,493,054,000)
		(2,747,584,000)
	
3.3	Transfers In
		40,418,000
		40,000,000
		80,418,000
	
3.4	Total
	$
	(1,294,948,000)
	$
	(1,533,054,000)
	$
	(2,828,002,000)

3.5 	Sec. 2. ALLOTMENT REDUCTIONS VOID.
 3.6 	The allotment reductions made by the commissioner of management and budget 
3.7 	from July 1, 2009, to the effective date of this section are void.

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

3.9 	ARTICLE 2
3.10 	CASH FLOW

3.11 	Section 1. Minnesota Statutes 2008, section 127A.46, is amended to read:
3.12 	127A.46 CHANGE IN PAYMENT OF AIDS AND CREDITS.
3.13 	If the commissioner of management and budget determines that modifications in the 
3.14 	payment schedule would reduce the need for state short-term borrowing, the commissioner 
3.15 	shall may modify payments to districts according to this section. The modifications must 
3.16 	begin no sooner than September 1 of each fiscal year, and must remain in effect until no 
3.17 	later than May 30 of that same fiscal year. In calculating the payment to a district pursuant 
3.18 	to section 127A.45, subdivision 3, the commissioner may subtract the sum specified in 
3.19 	that subdivision, plus an additional amount no greater than the following: 
3.20 	(1) the net cash balance in each of the district's operating funds on June 30 of the 
3.21 	preceding fiscal year; minus
3.22 	(2) the product of $150 $700 times the number of resident pupil units in the 
3.23 	preceding fiscal year; minus
3.24 	(3) the amount of payments made by the county treasurer during the preceding fiscal 
3.25 	year, pursuant to section 276.11, which is considered revenue for the current school year. 
3.26 	However, no additional amount shall be subtracted if the total of the net unappropriated 
3.27 	fund balances in the district's four operating funds on June 30 of the preceding fiscal year, 
3.28 	is less than the product of $350 $700 times the number of resident pupil units in the 
3.29 	preceding fiscal year. The net cash balance must include all cash and investments, less 
3.30 	certificates of indebtedness outstanding, and orders not paid for want of funds. 
3.31 	A district may appeal the payment schedule established by this section according to 
3.32 	the procedures established in section 127A.45, subdivision 4. 

4.1 	Sec. 2. Minnesota Statutes 2009 Supplement, section 137.025, subdivision 1, is 
4.2 	amended to read:
4.3 		Subdivision 1.Monthly payments. The commissioner of management and budget 
4.4 	shall pay 1/12 of the annual appropriation to the University of Minnesota onby the 21st
4.5 	25th day of each month. If the 21st 25th day of the month falls on a Saturday or Sunday, 
4.6 	the monthly payment must be made on by the first business day immediately following 
4.7 	the 21st 25th day of the month.

4.8 	Sec. 3. Minnesota Statutes 2008, section 276.112, is amended to read:
4.9 	276.112 STATE PROPERTY TAXES; COUNTY TREASURER.
4.10 	On or before January 25 each year, for the period ending December 31 of the 
4.11 	prior year, and on or before June 28 each year, for the period ending on the most recent 
4.12 	settlement day determined in section 276.09, and on or before December 2 each year, for 
4.13 	the period ending November 20 the estimated payment and settlement dates provided in 
4.14 	this chapter for the settlement of taxes levied by school districts, the county treasurer must 
4.15 	make full settlement with the county auditor according to sections 276.09, 276.10, and 
4.16 	276.111 for all receipts of state property taxes levied under section 275.025, and must 
4.17 	transmit those receipts to the commissioner of revenue by electronic means on the dates 
4.18 	and according to the provisions applicable to distributions to school districts.

4.19 	EFFECTIVE DATE. This section is effective for distributions beginning October 
4.20 	1, 2010, and thereafter.

4.21 	Sec. 4. Minnesota Statutes 2009 Supplement, section 289A.20, subdivision 4, is 
4.22 	amended to read:
4.23 		Subd. 4.Sales and use tax. (a) The taxes imposed by chapter 297A are due and 
4.24 	payable to the commissioner monthly on or before the 20th day of the month following 
4.25 	the month in which the taxable event occurred, or following another reporting period 
4.26 	as the commissioner prescribes or as allowed under section 289A.18, subdivision 4, 
4.27 	paragraph (f) or (g), except that:
4.28 	(1) use taxes due on an annual use tax return as provided under section 289A.11, 
4.29 	subdivision 1, are payable by April 15 following the close of the calendar year.; and
4.30 	(2) except as provided in paragraph (f), for a vendor having a liability of $120,000 
4.31 	or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes 
4.32 	imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the 
4.33 	commissioner monthly in the following manner:
5.1 	(i) On or before the 14th day of the month following the month in which the taxable 
5.2 	event occurred, the vendor must remit to the commissioner 90 percent of the estimated 
5.3 	liability for the month in which the taxable event occurred.
5.4 	(ii) On or before the 20th day of the month in which the taxable event occurs, the 
5.5 	vendor must remit to the commissioner a prepayment for the month in which the taxable 
5.6 	event occurs equal to 67 percent of the liability for the previous month.
5.7 	(iii) On or before the 20th day of the month following the month in which the taxable 
5.8 	event occurred, the vendor must pay any additional amount of tax not previously remitted 
5.9 	under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than 
5.10 	the vendor's liability for the month in which the taxable event occurred, the vendor may 
5.11 	take a credit against the next month's liability in a manner prescribed by the commissioner.
5.12 	(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to 
5.13 	continue to make payments in the same manner, as long as the vendor continues having a 
5.14 	liability of $120,000 or more during the most recent fiscal year ending June 30.
5.15 	(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required 
5.16 	payment in the first month that the vendor is required to make a payment under either item 
5.17 	(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make 
5.18 	subsequent monthly payments in the manner provided in item (ii).
5.19 	(vi) For vendors making an accelerated payment under item (ii), for the first month 
5.20 	that the vendor is required to make the accelerated payment, on the 20th of that month, the 
5.21 	vendor will pay 100 percent of the liability for the previous month and a prepayment for 
5.22 	the first month equal to 67 percent of the liability for the previous month.
5.23 	(b) Notwithstanding paragraph (a), a vendor having a liability of $120,000 or more 
5.24 	during a fiscal year ending June 30 must remit the June liability for the next year in the 
5.25 	following manner:
5.26 	(1) Two business days before June 30 of the year, the vendor must remit 90 percent 
5.27 	of the estimated June liability to the commissioner.
5.28 	(2) On or before August 20 of the year, the vendor must pay any additional amount 
5.29 	of tax not remitted in June.
5.30 	(c) A vendor having a liability of:
5.31 	(1) $20,000 or more in the fiscal year ending June 30, 2005; or
5.32 	(2) (1) $10,000 or more in the, but less than $120,000 during a fiscal year ending 
5.33 	June 30, 2006 2009, and fiscal years thereafter, must remit by electronic means all 
5.34 	liabilities on returns due for periods beginning in the subsequent calendar year by 
5.35 	electronic means on or before the 20th day of the month following the month in which the 
5.36 	taxable event occurred, or on or before the 20th day of the month following the month in 
6.1 	which the sale is reported under section 289A.18, subdivision 4, except for 90 percent of 
6.2 	the estimated June liability, which is due two business days before June 30. The remaining 
6.3 	amount of the June liability is due on August 20.; or
6.4 	(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years 
6.5 	thereafter, must remit by electronic means all liabilities in the manner provided in 
6.6 	paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar 
6.7 	year, except for 90 percent of the estimated June liability, which is due two business days 
6.8 	before June 30. The remaining amount of the June liability is due on August 20.
6.9 	(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's 
6.10 	religious beliefs from paying electronically shall be allowed to remit the payment by mail. 
6.11 	The filer must notify the commissioner of revenue of the intent to pay by mail before 
6.12 	doing so on a form prescribed by the commissioner. No extra fee may be charged to a 
6.13 	person making payment by mail under this paragraph. The payment must be postmarked 
6.14 	at least two business days before the due date for making the payment in order to be 
6.15 	considered paid on a timely basis.
6.16 	(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed 
6.17 	under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the 
6.18 	chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and 
6.19 	paid with the chapter 297A taxes, then the payment of all the liabilities on the return must 
6.20 	be accelerated as provided in this subdivision.
6.21 	(f) At the start of the first calendar quarter at least 90 days after the cash flow 
6.22 	account established in section 16A.152, subdivision 1, and the budget reserve account 
6.23 	established in section 16A.152, subdivision 1a, reach the amounts listed in section 
6.24 	16A.152, subdivision 2, paragraph (a), the remittance of the accelerated payments required 
6.25 	under paragraph (a), clause (2), must be suspended. The commissioner of management 
6.26 	and budget shall notify the commissioner of revenue when the accounts have reached 
6.27 	the required amounts. Beginning with the suspension of paragraph (a), clause (2), for a 
6.28 	vendor with a liability of $120,000 or more during a fiscal year ending June 30, 2009, 
6.29 	and fiscal years thereafter, the taxes imposed by chapter 297A are due and payable to the 
6.30 	commissioner on the 20th day of the month following the month in which the taxable 
6.31 	event occurred. Payments of tax liabilities for taxable events occurring in June under 
6.32 	paragraph (b) are not changed.

6.33 	EFFECTIVE DATE. This section is effective for taxes due and payable after 
6.34 	September 1, 2010.

7.1 	Sec. 5. Minnesota Statutes 2008, section 289A.60, is amended by adding a subdivision 
7.2 	to read:
7.3 		Subd. 31.Accelerated payment of monthly sales tax liability; penalty for 
7.4 	underpayment. For payments made after September 1, 2010, if a vendor is required 
7.5 	by section 289A.20, subdivision 4, paragraph (a), clause (2), item (i) or (ii), to make 
7.6 	accelerated payments, then the penalty for underpayment is as follows:
7.7 	(a) For those vendors that must remit a 90 percent payment by the 14th day of 
7.8 	the month following the month in which the taxable event occurred, as an estimation 
7.9 	of monthly sales tax liabilities, including the liability of any fee or other tax that is to 
7.10 	be reported on the same return as and paid with the chapter 297A taxes, for the month 
7.11 	in which the taxable event occurred, the vendor shall pay a penalty equal to ten percent 
7.12 	of the amount of liability that was required to be paid by the 14th day of the month, less 
7.13 	the amount remitted by the 14th day of the month. The penalty must not be imposed, 
7.14 	however, if the amount remitted by the 14th day of the month equals the least of: (1) 90 
7.15 	percent of the liability for the month preceding the month in which the taxable event 
7.16 	occurred; (2) 90 percent of the liability for the same month in the previous calendar year 
7.17 	as the month in which the taxable event occurred; or (3) 90 percent of the average monthly 
7.18 	liability for the previous calendar year.
7.19 	(b) For those vendors that, on or before the 20th day of the month in which the 
7.20 	taxable event occurs, must remit to the commissioner a prepayment of sales tax liabilities 
7.21 	for the month in which the taxable event occurs equal to 67 percent of the liabilities for the 
7.22 	previous month, including the liability of any fee or other tax that is to be reported on the 
7.23 	same return as and paid with the chapter 297A taxes, for the month in which the taxable 
7.24 	event occurred, the vendor shall pay a penalty equal to ten percent of the amount of liability 
7.25 	that was required to be paid by the 20th of the month, less the amount remitted by the 20th 
7.26 	of the month. The penalty must not be imposed, however, if the amount remitted by the 
7.27 	20th of the month equals the lesser of 67 percent of the liability for the month preceding 
7.28 	the month in which the taxable event occurred or 67 percent of the liability of the same 
7.29 	month in the previous calendar year as the month in which the taxable event occurred.

7.30 	EFFECTIVE DATE. This section is effective for taxes due and payable after 
7.31 	September 1, 2010.

7.32 	Sec. 6. PAYMENT OF REFUNDS.
 7.33 	(a) In paying refunds during fiscal year 2011 of overpayments of corporate 
7.34 	franchise tax and of sales tax, including but not limited to capital equipment refunds, 
7.35 	the commissioner of revenue shall delay paying a sufficient number of these refunds 
8.1 	until fiscal year 2012 so that $152,000,000 less in refunds is paid in fiscal year 2011 
8.2 	than otherwise would have been paid. This amount is in addition to any amount that the 
8.3 	commissioner delays pursuant to administrative actions undertaken in connection with the 
8.4 	unallotment announced in June 2009. Refunds delayed by the commissioner under this 
8.5 	section are deemed to be due on July 1, 2011, for budget purposes, if the law otherwise 
8.6 	would provide an earlier date. Any refunds paid after June 30, 2011, and before the close 
8.7 	of fiscal year 2011 are deemed to be paid in fiscal year 2012 for budget purposes.
8.8 	(b) In carrying out the requirement of paragraph (a), the commissioner shall, to the 
8.9 	extent possible, minimize delaying the payment of refunds that would result in payment of 
8.10 	additional interest by the state. The commissioner may select refunds for delayed payment 
8.11 	under this section or exempt refunds from this section in the manner that the commissioner 
8.12 	determines, in the commissioner's sole discretion, has the least adverse effect on tax 
8.13 	administration and taxpayer compliance.

8.14 	ARTICLE 3
8.15 	E-12 EDUCATION

8.16 	Section 1. Minnesota Statutes 2008, section 123B.75, is amended by adding a 
8.17 	subdivision to read:
8.18 		Subd. 1a.Definition. For the purposes of this section, "school district tax settlement 
8.19 	revenue" means the current, delinquent, and manufactured home property tax receipts 
8.20 	collected by the county and distributed to the school district.

8.21 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2009.

8.22 	Sec. 2. Minnesota Statutes 2008, section 123B.75, subdivision 5, is amended to read:
8.23 		Subd. 5.Levy recognition. (a) "School district tax settlement revenue" means the 
8.24 	current, delinquent, and manufactured home property tax receipts collected by the county 
8.25 	and distributed to the school district.
8.26 	(b) For fiscal year 2004 and later years 2009 and 2010, in June of each year, the 
8.27 	school district must recognize as revenue, in the fund for which the levy was made, the 
8.28 	lesser of:
8.29 	(1) the sum of May, June, and July school district tax settlement revenue received in 
8.30 	that calendar year, plus general education aid according to section 126C.13, subdivision 
8.31 	4, received in July and August of that calendar year; or
8.32 	(2) the sum of:
9.1 	(i) 31 percent of the referendum levy certified according to section 126C.17, in 
9.2 	calendar year 2000; and
9.3 	(ii) the entire amount of the levy certified in the prior calendar year according to 
9.4 	section 124D.86, subdivision 4, for school districts receiving revenue under sections 
9.5 	124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph 
9.6 	(a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, 
9.7 	subdivision 6; plus
9.8 	(iii) zero percent of the amount of the levy certified in the prior calendar year for the 
9.9 	school district's general and community service funds, plus or minus auditor's adjustments, 
9.10 	not including the levy portions that are assumed by the state, that remains after subtracting 
9.11 	the referendum levy certified according to section 126C.17 and the amount recognized 
9.12 	according to item (ii).
9.13 	(b) For fiscal year 2011 and later years, in June of each year, the school district must 
9.14 	recognize as revenue, in the fund for which the levy was made, the lesser of:
9.15 	(1) the sum of May, June, and July school district tax settlement revenue received in 
9.16 	that calendar year, plus general education aid according to section 126C.13, subdivision 
9.17 	4, received in July and August of that calendar year; or
9.18 	(2) the sum of:
9.19 	(i) the greater of 48.6 percent of the referendum levy certified according to section 
9.20 	126C.17 in the prior calendar year, or 31 percent of the referendum levy certified 
9.21 	according to section 126C.17 in calendar year 2000; plus
9.22 	(ii) the entire amount of the levy certified in the prior calendar year according to 
9.23 	section 124D.86, subdivision 4, for school districts receiving revenue under sections 
9.24 	124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph 
9.25 	(a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, 
9.26 	subdivision 6; plus
9.27 	(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the 
9.28 	school district's general and community service funds, plus or minus auditor's adjustments, 
9.29 	not including the levy portions that are assumed by the state, that remains after subtracting 
9.30 	the referendum levy certified according to section 126C.17 and the amount recognized 
9.31 	according to item (ii).

9.32 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2009.

9.33 	Sec. 3. Minnesota Statutes 2008, section 123B.75, subdivision 9, is amended to read:
9.34 		Subd. 9.Commissioner shall specify fiscal year. The commissioner shall specify 
9.35 	the fiscal year or years to which the revenue from any aid or tax levy is applicable if 
10.1 	Minnesota Statutes do not so specify. The commissioner must report to the chairs and 
10.2 	ranking minority members of the house of representatives and senate committees with 
10.3 	jurisdiction over education finance by January 15 of each year any adjustments under this 
10.4 	subdivision in the previous year.

10.5 	Sec. 4. Minnesota Statutes 2008, section 126C.48, subdivision 7, is amended to read:
10.6 		Subd. 7.Reporting. For each tax settlement, the county auditor shall report to each 
10.7 	school district by fund, the district tax settlement revenue defined in section 123B.75, 
10.8 	subdivision 5, paragraph (a) 1a, on the form specified in section 276.10. The county auditor 
10.9 	shall send to the district a copy of the spread levy report specified in section 275.124. 

10.10 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2009.

10.11 	Sec. 5. Minnesota Statutes 2008, section 127A.441, is amended to read:
10.12 	127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.
10.13 	Each year, the state aids payable to any school district for that fiscal year that are 
10.14 	recognized as revenue in the school district's general and community service funds shall 
10.15 	be adjusted by an amount equal to (1) the amount the district recognized as revenue for the 
10.16 	prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph (a) or (b), minus (2) 
10.17 	the amount the district recognized as revenue for the current fiscal year pursuant to section 
10.18 	123B.75, subdivision 5, paragraph (a) or (b). For purposes of making the aid adjustments 
10.19 	under this section, the amount the district recognizes as revenue for either the prior fiscal 
10.20 	year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b), 
10.21 	shall not include any amount levied pursuant to section 124D.86, subdivision 4, for school 
10.22 	districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 
10.23 	126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 
10.24 	126C.457; and 126C.48, subdivision 6. Payment from the permanent school fund shall not 
10.25 	be adjusted pursuant to this section. The school district shall be notified of the amount of 
10.26 	the adjustment made to each payment pursuant to this section. 

10.27 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2009.

10.28 	Sec. 6. Minnesota Statutes 2008, section 127A.45, subdivision 2, is amended to read:
10.29 		Subd. 2.Definitions. (a) The term "Other district receipts" means payments by 
10.30 	county treasurers pursuant to section 276.10, apportionments from the school endowment 
10.31 	fund pursuant to section 127A.33, apportionments by the county auditor pursuant to 
11.1 	section 127A.34, subdivision 2, and payments to school districts by the commissioner of 
11.2 	revenue pursuant to chapter 298.
11.3 	(b) The term "Cumulative amount guaranteed" means the product of
11.4 	(1) the cumulative disbursement percentage shown in subdivision 3; times
11.5 	(2) the sum of
11.6 	(i) the current year aid payment percentage of the estimated aid and credit 
11.7 	entitlements paid according to subdivision 13; plus
11.8 	(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
11.9 	(iii) the other district receipts.
11.10 	(c) The term "Payment date" means the date on which state payments to districts 
11.11 	are made by the electronic funds transfer method. If a payment date falls on a Saturday, 
11.12 	a Sunday, or a weekday which is a legal holiday, the payment shall be made on the 
11.13 	immediately preceding business day. The commissioner may make payments on dates 
11.14 	other than those listed in subdivision 3, but only for portions of payments from any 
11.15 	preceding payment dates which could not be processed by the electronic funds transfer 
11.16 	method due to documented extenuating circumstances.
11.17 	(d) The current year aid payment percentage equals 90 73 in fiscal year 2010, 70 
11.18 	in fiscal year 2011, and 90 in fiscal years 2012 and later.

11.19 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2009.

11.20 	Sec. 7. Minnesota Statutes 2008, section 127A.45, subdivision 3, is amended to read:
11.21 		Subd. 3.Payment dates and percentages. (a) For fiscal year 2004 and later, The 
11.22 	commissioner shall pay to a district on the dates indicated an amount computed as follows: 
11.23 	the cumulative amount guaranteed minus the sum of (a)(1) the district's other district 
11.24 	receipts through the current payment, and (b)(2) the aid and credit payments through the 
11.25 	immediately preceding payment. For purposes of this computation, the payment dates and 
11.26 	the cumulative disbursement percentages are as follows:

11.27		Payment date
	Percentage
	
11.28	Payment 1
	July 15:
	5.5
	
11.29	Payment 2
	July 30:
	8.0
	
11.30	Payment 3
	August 15:
	17.5
	
11.31	Payment 4
	August 30:
	20.0
	
11.32	Payment 5
	September 15:
	22.5
	
11.33	Payment 6
	September 30:
	25.0
	
11.34	Payment 7
	October 15:
	27.0
	
11.35	Payment 8
	October 30:
	30.0
	
11.36	Payment 9
	November 15:
	32.5
	
12.1	Payment 10
	November 30:
	36.5
	
12.2	Payment 11
	December 15:
	42.0
	
12.3	Payment 12
	December 30:
	45.0
	
12.4	Payment 13
	January 15:
	50.0
	
12.5	Payment 14
	January 30:
	54.0
	
12.6	Payment 15
	February 15:
	58.0
	
12.7	Payment 16
	February 28:
	63.0
	
12.8	Payment 17
	March 15:
	68.0
	
12.9	Payment 18
	March 30:
	74.0
	
12.10	Payment 19
	April 15:
	78.0
	
12.11	Payment 20
	April 30:
	85.0
	
12.12	Payment 21
	May 15:
	90.0
	
12.13	Payment 22
	May 30:
	95.0
	
12.14	Payment 23
	June 20:
	100.0
	
12.15 	(b) In addition to the amounts paid under paragraph (a), for fiscal year 2004, the 
12.16 	commissioner shall pay to a district on the dates indicated an amount computed as follows:

12.17
12.18	Payment 3
	August 15: the final adjustment for the prior fiscal year for the state paid 
property tax credits established in section 273.1392
	
12.19
12.20	Payment 4
	August 30: one-third of the final adjustment for the prior fiscal year for 
all aid entitlements except state paid property tax credits
	
12.21
12.22	Payment 6
	September 30: one-third of the final adjustment for the prior fiscal year 
for all aid entitlements except state paid property tax credits
	
12.23
12.24	Payment 8
	October 30: one-third of the final adjustment for the prior fiscal year for 
all aid entitlements except state paid property tax credits
	
12.25 	(c) (b) In addition to the amounts paid under paragraph (a), for fiscal year 2005 and 
12.26 	later, the commissioner shall pay to a district on the dates indicated an amount computed 
12.27 	as follows:

12.28
12.29	Payment 3
	August 15: the final adjustment for the prior fiscal year for the state paid 
property tax credits established in section 273.1392
	
12.30
12.31	Payment 4
	August 30: 30 percent of the final adjustment for the prior fiscal year for 
all aid entitlements except state paid property tax credits
	
12.32
12.33	Payment 6
	September 30: 40 percent of the final adjustment for the prior fiscal year 
for all aid entitlements except state paid property tax credits
	
12.34
12.35	Payment 8
	October 30: 30 percent of the final adjustment for the prior fiscal year 
for all aid entitlements except state paid property tax credits

12.36 	EFFECTIVE DATE. This section is effective the day following final enactment 
12.37 	and applies to fiscal years 2010 and later.

12.38 	Sec. 8. Minnesota Statutes 2008, section 127A.45, is amended by adding a subdivision 
12.39 	to read:
13.1 		Subd. 7b.Advance final payment. (a) Notwithstanding subdivisions 3 and 7, if the 
13.2 	current year aid payment percentage, under subdivision 2, is less than 90, then a school 
13.3 	district or charter school exceeding its expenditure limitations under section 123B.83 as of 
13.4 	June 30 of the prior fiscal year may receive a portion of its final payment for the current 
13.5 	fiscal year on June 20, if requested by the district or charter school. The amount paid 
13.6 	under this subdivision must not exceed the lesser of:
13.7 	(1) the difference between 90 percent and the current year payment percentage in 
13.8 	subdivision 2, paragraph (d), in the current fiscal year times the sum of the district or 
13.9 	charter school's general education aid plus the aid adjustment in section 127A.50 for 
13.10 	the current fiscal year; or
13.11 	(2) the amount by which the district's or charter school's net negative unreserved 
13.12 	general fund balance as of June 30 of the prior fiscal year exceeds 2.5 percent of the 
13.13 	district or charter school's expenditures for that fiscal year.
13.14 	(b) The state total advance final payment under this subdivision for any year must 
13.15 	not exceed $7,500,000. If the amount request exceeds $7,500,000, the advance final 
13.16 	payment for each eligible district must be reduced proportionately.

13.17 	EFFECTIVE DATE. This section is effective the day following final enactment 
13.18 	and applies to fiscal years 2010 and later.

13.19 	Sec. 9. Minnesota Statutes 2008, section 127A.45, subdivision 13, is amended to read:
13.20 		Subd. 13.Aid payment percentage. Except as provided in subdivisions 11, 12, 12a, 
13.21 	and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A, 
13.22 	120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and section 273.1392, 
13.23 	shall be paid at the current year aid payment percentage of the estimated entitlement during 
13.24 	the fiscal year of the entitlement. For the purposes of this subdivision, a district's estimated 
13.25 	entitlement for special education excess cost aid under section 125A.79 for fiscal year 
13.26 	2005 equals 70 percent of the district's entitlement for the second prior fiscal year. For the 
13.27 	purposes of this subdivision, a district's estimated entitlement for special education excess 
13.28 	cost aid under section 125A.79 for fiscal year 2006 and later equals 74.0 percent of the 
13.29 	district's entitlement for the current fiscal year. The final adjustment payment, according 
13.30 	to subdivision 9, must be the amount of the actual entitlement, after adjustment for actual 
13.31 	data, minus the payments made during the fiscal year of the entitlement.

13.32 	Sec. 10. Laws 2009, chapter 96, article 1, section 24, subdivision 2, is amended to read:
13.33 		Subd. 2.General education aid. For general education aid under Minnesota 
13.34 	Statutes, section 126C.13, subdivision 4:

14.1
14.2		$
	5,195,504,000
4,291,422,000
	.....
	2010
	
14.3
14.4		$
	5,626,994,000
4,776,884,000
	.....
	2011
	
14.5 	The 2010 appropriation includes $555,864,000 $553,591,000 for 2009 and 
14.6 	$4,639,640,000 $3,737,831,000 for 2010.
14.7 	The 2011 appropriation includes $500,976,000 $1,363,306,000  for 2010 and 
14.8 	$5,126,018,000 $3,413,578,000  for 2011.

14.9 	Sec. 11. Laws 2009, chapter 96, article 6, section 11, subdivision 6, is amended to read:
14.10 		Subd. 6.Educate parents partnership. For the educate parents partnership under 
14.11 	Minnesota Statutes, section 124D.129:

14.12		$
	50,00049,000
	.....
	2010
	
14.13		$
	50,00049,000
	.....
	2011
	
14.14 	Any balance in the first year does not cancel but is available in the second year.

14.15 	Sec. 12. Laws 2009, chapter 96, article 6, section 11, subdivision 7, is amended to read:
14.16 		Subd. 7.Kindergarten entrance assessment initiative and intervention 
14.17 	program. For the kindergarten entrance assessment initiative and intervention program 
14.18 	under Minnesota Statutes, section 124D.162:

14.19		$
	287,000281,000
	.....
	2010
	
14.20		$
	287,000281,000
	.....
	2011
	
14.21 	Any balance in the first year does not cancel but is available in the second year.

14.22 	Sec. 13. Laws 2009, chapter 96, article 7, section 3, subdivision 2, is amended to read:
14.23 		Subd. 2.Department. (a) For the Department of Education:

14.24
14.25		$
	20,943,000
20,147,600
	.....
	2010
	
14.26
14.27		$
	20,943,000
19,811,000
	.....
	2011
	
14.28 	Any balance in the first year does not cancel but is available in the second year.
14.29 	(b) $260,000 each year is for the Minnesota Children's Museum.
14.30 	(c) $41,000 each year is for the Minnesota Academy of Science.
14.31 	(d) $632,000 $618,000 each year is for the Board of Teaching. Any balance in the 
14.32 	first year does not cancel but is available in the second year. 
14.33 	(e) $171,000 $167,000 each year is for the Board of School Administrators. Any 
14.34 	balance in the first year does not cancel but is available in the second year.
15.1 	(f) $40,000 each year$10,000 is for an early hearing loss intervention coordinator 
15.2 	under Minnesota Statutes, section 125A.63, subdivision 5. This appropriation is for 
15.3 	fiscal year 2010 only. If the department expends federal funds to employ a hearing 
15.4 	loss coordinator under Minnesota Statutes, section 125A.63, subdivision 5, then the 
15.5 	appropriation under this paragraph is reallocated for purposes of employing a world 
15.6 	languages coordinator.
15.7 	(g) $50,000 each year is for the Duluth Children's Museum.
15.8 	(h) None of the amounts appropriated under this subdivision may be used for 
15.9 	Minnesota's Washington, D.C., office.
15.10 	(i) The expenditures of federal grants and aids as shown in the biennial budget 
15.11 	document and its supplements are approved and appropriated and shall be spent as 
15.12 	indicated. The commissioner must provide, to the K-12 Education Finance Division in 
15.13 	the house of representatives and the E-12 Budget Division in the senate, details about the 
15.14 	distribution of state incentive grants, education technology state grants, teacher incentive 
15.15 	funds, and statewide data system funds as outlined in the supplemental federal funds 
15.16 	submission dated March 25, 2009.

15.17 	ARTICLE 4
15.18 	E-12 EDUCATION FORECAST ADJUSTMENTS

15.19 	Section 1. Minnesota Statutes 2009 Supplement, section 123B.54, is amended to read:
15.20 	123B.54 DEBT SERVICE APPROPRIATION.
15.21 	(a) $9,109,000 in fiscal year 2009, $7,948,000 in fiscal year 2010, $9,275,000 in 
15.22 	fiscal year 2011, $9,574,000 $17,161,000 in fiscal year 2012, and $8,904,000 $19,175,000
15.23 	in fiscal year 2013 and later are appropriated from the general fund to the commissioner of 
15.24 	education for payment of debt service equalization aid under section 123B.53.
15.25 	(b) The appropriations in paragraph (a) must be reduced by the amount of any 
15.26 	money specifically appropriated for the same purpose in any year from any state fund.

15.27 	Sec. 2. Laws 2009, chapter 96, article 1, section 24, subdivision 4, is amended to read:
15.28 		Subd. 4.Abatement revenue. For abatement aid under Minnesota Statutes, section 
15.29 	127A.49:

15.30
15.31		$
	1,175,000
1,000,000 
	.....
	2010
	
15.32
15.33		$
	1,034,000
1,132,000
	.....
	2011
	
16.1 	The 2010 appropriation includes $140,000 for 2009 and $1,035,000 $860,000  for 
16.2 	2010.
16.3 	The 2011 appropriation includes $115,000 $317,000 for 2010 and $919,000
16.4 	$815,000 for 2011.

16.5 	Sec. 3. Laws 2009, chapter 96, article 1, section 24, subdivision 5, is amended to read:
16.6 		Subd. 5.Consolidation transition. For districts consolidating under Minnesota 
16.7 	Statutes, section 123A.485:

16.8		$
	854,000 684,000
	.....
	2010
	
16.9		$
	927,000 576,000
	.....
	2011
	
16.10 	The 2010 appropriation includes $0 for 2009 and $854,000 $684,000 for 2010.
16.11 	The 2011 appropriation includes $94,000 $252,000 for 2010 and $833,000 $324,000
16.12 	for 2011.

16.13 	Sec. 4. Laws 2009, chapter 96, article 1, section 24, subdivision 6, is amended to read:
16.14 		Subd. 6.Nonpublic pupil education aid. For nonpublic pupil education aid under 
16.15 	Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

16.16
16.17		$
	17,250,000
12,861,000
	.....
	2010
	
16.18
16.19		$
	17,889,000
16,157,000
	.....
	2011
	
16.20 	The 2010 appropriation includes $1,647,000 $1,067,000 for 2009 and $15,603,000
16.21 	$11,794,000 for 2010.
16.22 	The 2011 appropriation includes $1,733,000$4,362,000for 2010 and $16,156,000
16.23 	$11,795,000 for 2011.

16.24 	Sec. 5. Laws 2009, chapter 96, article 1, section 24, subdivision 7, is amended to read:
16.25 		Subd. 7.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
16.26 	under Minnesota Statutes, section 123B.92, subdivision 9:

16.27
16.28		$
	22,159,000
17,297,000
	.....
	2010
	
16.29
16.30		$
	22,712,000
19,729,000
	.....
	2011
	
16.31 	The 2010 appropriation includes $2,077,000 for 2009 and $20,082,000$15,220,000 
16.32 	for 2010.
16.33 	The 2011 appropriation includes $2,231,000$5,629,000 for 2010 and $20,481,000
16.34 	$14,100,000 for 2011.

17.1 	Sec. 6. Laws 2009, chapter 96, article 2, section 67, subdivision 2, is amended to read:
17.2 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
17.3 	Statutes, section 124D.11, subdivision 4: 

17.4
17.5		$
	40,453,000
34,833,000
	.....
	2010
	
17.6
17.7		$
	44,775,000
44,938,000
	.....
	2011
	
17.8 	The 2010 appropriation includes $3,704,000 for 2009 and $36,749,000 $31,129,000
17.9 	for 2010.
17.10 	The 2011 appropriation includes $4,083,000 $11,513,000 for 2010 and $40,692,000
17.11 	$33,425,000 for 2011.

17.12 	Sec. 7. Laws 2009, chapter 96, article 2, section 67, subdivision 3, is amended to read:
17.13 		Subd. 3.Charter school startup aid. For charter school startup cost aid under 
17.14 	Minnesota Statutes, section 124D.11:

17.15
17.16		$
	1,488,000
1,218,000
	.....
	2010
	
17.17
17.18		$
	1,064,000
743,000
	.....
	2011
	
17.19 	The 2010 appropriation includes $202,000 for 2009 and $1,286,000 $1,016,000
17.20 	for 2010.
17.21 	The 2011 appropriation includes $142,000 $375,000 for 2010 and $922,000
17.22 	$368,000  for 2011.

17.23 	Sec. 8. Laws 2009, chapter 96, article 2, section 67, subdivision 4, is amended to read:
17.24 		Subd. 4.Integration aid. For integration aid under Minnesota Statutes, section 
17.25 	124D.86, subdivision 5:

17.26
17.27		$
	65,358,000
50,812,000
	.....
	2010
	
17.28
17.29		$
	65,484,000
61,782,000
	.....
	2011
	
17.30 	The 2010 appropriation includes $6,110,000 $5,832,000 for 2009 and $59,248,000
17.31 	$44,980,000 for 2010.
17.32 	The 2011 appropriation includes $6,583,000 $16,636,000 for 2010 and $58,901,000
17.33 	$45,146,000 for 2011.

17.34 	Sec. 9. Laws 2009, chapter 96, article 2, section 67, subdivision 7, is amended to read:
18.1 		Subd. 7.Success for the future. For American Indian success for the future grants 
18.2 	under Minnesota Statutes, section 124D.81:

18.3
18.4		$
	2,137,000
1,774,000
	.....
	2010
	
18.5
18.6		$
	2,137,000
2,072,000
	.....
	2011
	
18.7 	The 2010 appropriation includes $213,000 for 2009 and $1,924,000 $1,561,000
18.8 	for 2010.
18.9 	The 2011 appropriation includes $213,000 $576,000 for 2010 and $1,924,000
18.10 	$1,496,000 for 2011.

18.11 	Sec. 10. Laws 2009, chapter 96, article 2, section 67, subdivision 9, is amended to read:
18.12 		Subd. 9.Tribal contract schools. For tribal contract school aid under Minnesota 
18.13 	Statutes, section 124D.83:

18.14
18.15		$
	2,030,000
1,702,000
	.....
	2010
	
18.16
18.17		$
	2,211,000
2,119,000
	.....
	2011
	
18.18 	The 2010 appropriation includes $191,000 for 2009 and $1,839,000 $1,511,000
18.19 	for 2010.
18.20 	The 2011 appropriation includes $204,000 $558,000 for 2010 and $2,007,000
18.21 	$1,561,000 for 2011.

18.22 	Sec. 11. Laws 2009, chapter 96, article 3, section 21, subdivision 2, is amended to read:
18.23 		Subd. 2.Special education; regular. For special education aid under Minnesota 
18.24 	Statutes, section 125A.75:

18.25
18.26		$
	734,071,000
609,003,000
	.....
	2010
	
18.27
18.28		$
	781,497,000
749,248,000
	.....
	2011
	
18.29 	The 2010 appropriation includes $71,947,000 for 2009 and $662,124,000
18.30 	$537,056,000 for 2010.
18.31 	The 2011 appropriation includes $73,569,000 $198,637,000 for 2010 and 
18.32 	$707,928,000 $550,611,000 for 2011.

18.33 	Sec. 12. Laws 2009, chapter 96, article 3, section 21, subdivision 4, is amended to read:
18.34 		Subd. 4.Travel for home-based services. For aid for teacher travel for home-based 
18.35 	services under Minnesota Statutes, section 125A.75, subdivision 1:

19.1		$
	258,000 224,000
	.....
	2010
	
19.2		$
	282,000 282,000
	.....
	2011
	
19.3 	The 2010 appropriation includes $24,000 for 2009 and $234,000 $200,000 for 2010.
19.4 	The 2011 appropriation includes $26,000 $73,000 for 2010 and $256,000 $209,000
19.5 	for 2011.

19.6 	Sec. 13. Laws 2009, chapter 96, article 3, section 21, subdivision 5, is amended to read:
19.7 		Subd. 5.Special education; excess costs. For excess cost aid under Minnesota 
19.8 	Statutes, section 125A.79, subdivision 7:

19.919.10
		$
	110,871,000
96,926,000
	.....
	2010
	
19.11
19.12		$
	110,877,000
108,410,000
	.....
	2011
	
19.13 	The 2010 appropriation includes $37,046,000 for 2009 and $73,825,000 $59,880,000
19.14 	for 2010.
19.15 	The 2011 appropriation includes $37,022,000 $50,967,000 for 2010 and $73,855,000
19.16 	$57,443,000  for 2011.

19.17 	Sec. 14. Laws 2009, chapter 96, article 4, section 12, subdivision 2, is amended to read:
19.18 		Subd. 2.Health and safety revenue. For health and safety aid according to 
19.19 	Minnesota Statutes, section 123B.57, subdivision 5:

19.20		$
	161,000 132,000
	.....
	2010
	
19.21		$
	160,000 135,000
	.....
	2011
	
19.22 	The 2010 appropriation includes $10,000 for 2009 and $151,000 $122,000 for 2010.
19.23 	The 2011 appropriation includes $16,000 $44,000 for 2010 and $144,000 $91,000
19.24 	for 2011.

19.25 	Sec. 15. Laws 2009, chapter 96, article 4, section 12, subdivision 3, is amended to read:
19.26 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
19.27 	Statutes, section 123B.53, subdivision 6:

19.28
19.29		$
	7,948,000
6,608,000
	.....
	2010
	
19.30
19.31		$
	9,275,000
8,204,000
	.....
	2011
	
19.32 	The 2010 appropriation includes $851,000 for 2009 and $7,097,000 $5,757,000
19.33 	for 2010.
20.1 	The 2011 appropriation includes $788,000 $2,128,000 for 2010 and $8,487,000
20.2 	$6,076,000 for 2011.

20.3 	Sec. 16. Laws 2009, chapter 96, article 4, section 12, subdivision 4, is amended to read:
20.4 		Subd. 4.Alternative facilities bonding aid. For alternative facilities bonding aid, 
20.5 	according to Minnesota Statutes, section 123B.59, subdivision 1:

20.6
20.7		$
	19,287,000
16,008,000
	.....
	2010
	
20.8
20.9		$
	19,287,000
18,708,000
	.....
	2011
	
20.10 	The 2010 appropriation includes $1,928,000 for 2009 and $17,359,000 $14,080,000
20.11 	for 2010.
20.12 	The 2011 appropriation includes $1,928,000 $5,207,000 for 2010 and $17,359,000
20.13 	$13,501,000  for 2011.

20.14 	Sec. 17. Laws 2009, chapter 96, article 4, section 12, subdivision 6, is amended to read:
20.15 		Subd. 6.Deferred maintenance aid. For deferred maintenance aid, according to 
20.16 	Minnesota Statutes, section 123B.591, subdivision 4:

20.17
20.18		$
	2,302,000
1,918,000
	.....
	2010
	
20.19
20.20		$
	2,073,000
2,146,000
	.....
	2011
	
20.21 	The 2010 appropriation includes $260,000 for 2009 and $2,042,000 $1,658,000
20.22 	for 2010.
20.23 	The 2011 appropriation includes $226,000 $613,000 for 2010 and $1,847,000
20.24 	$1,533,000 for 2011.

20.25 	Sec. 18. Laws 2009, chapter 96, article 5, section 13, subdivision 4, is amended to read:
20.26 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
20.27 	section 124D.118:

20.28
20.29		$
	1,098,000
1,104,000
	.....
	2010
	
20.30
20.31		$
	1,120,000
1,126,000
	.....
	2011

20.32 	Sec. 19. Laws 2009, chapter 96, article 5, section 13, subdivision 6, is amended to read:
20.33 		Subd. 6.Basic system support. For basic system support grants under Minnesota 
20.34 	Statutes, section 134.355:

21.1
21.2		$
	13,570,000
11,264,000
	.....
	2010
	
21.3
21.4		$
	13,570,000
13,162,000
	.....
	2011
	
21.5 	The 2010 appropriation includes $1,357,000 for 2009 and $12,213,000 $9,907,000
21.6 	for 2010.
21.7 	The 2011 appropriation includes $1,357,000 $3,663,000 for 2010 and $12,213,000
21.8 	$9,499,000 for 2011.

21.9 	Sec. 20. Laws 2009, chapter 96, article 5, section 13, subdivision 7, is amended to read:
21.10 		Subd. 7.Multicounty, multitype library systems. For grants under Minnesota 
21.11 	Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

21.12
21.13		$
	1,300,000
1,079,000
	.....
	2010
	
21.14
21.15		$
	1,300,000
1,261,000
	.....
	2011
	
21.16 	The 2010 appropriation includes $130,000 for 2009 and $1,170,000 $949,000 for 
21.17 	2010.
21.18 	The 2011 appropriation includes $130,000 $351,000 for 2010 and $1,170,000
21.19 	$910,000 for 2011.

21.20 	Sec. 21. Laws 2009, chapter 96, article 5, section 13, subdivision 9, is amended to read:
21.21 		Subd. 9.Regional library telecommunications aid. For regional library 
21.22 	telecommunications aid under Minnesota Statutes, section 134.355:

21.23
21.24		$
	2,300,000
1,909,000
	.....
	2010
	
21.25
21.26		$
	2,300,000
2,231,000
	.....
	2011
	
21.27 	The 2010 appropriation includes $230,000 for 2009 and $2,070,000 $1,679,000
21.28 	for 2010.
21.29 	The 2011 appropriation includes $230,000 $621,000 for 2010 and $2,070,000
21.30 	$1,610,000 for 2011.

21.31 	Sec. 22. Laws 2009, chapter 96, article 6, section 11, subdivision 2, is amended to read:
21.32 		Subd. 2.School readiness. For revenue for school readiness programs under 
21.33 	Minnesota Statutes, sections 124D.15 and 124D.16:

22.1
22.2		$
	10,095,000
8,379,000
	.....
	2010
	
22.3
22.4		$
	10,095,000
9,792,000
	.....
	2011
	
22.5 	The 2010 appropriation includes $1,009,000 for 2009 and $9,086,000 $7,370,000
22.6 	for 2010.
22.7 	The 2011 appropriation includes $1,009,000 $2,725,000 for 2010 and $9,086,000
22.8 	$7,067,000 for 2011.

22.9 	Sec. 23. Laws 2009, chapter 96, article 6, section 11, subdivision 3, is amended to read:
22.10 		Subd. 3.Early childhood family education aid. For early childhood family 
22.11 	education aid under Minnesota Statutes, section 124D.135:

22.12
22.13		$
	22,955,000
19,005,000
	.....
	2010
	
22.14
22.15		$
	22,547,000
21,460,000
	.....
	2011
	
22.16 	The 2010 appropriation includes $3,020,000 for 2009 and $19,935,000 $15,985,000
22.17 	for 2010.
22.18 	The 2011 appropriation includes $2,214,000 $5,911,000 for 2010 and $20,333,000
22.19 	$15,549,000 for 2011.

22.20 	Sec. 24. Laws 2009, chapter 96, article 6, section 11, subdivision 4, is amended to read:
22.21 		Subd. 4.Health and developmental screening aid. For health and developmental 
22.22 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

22.23
22.24		$
	3,694,000
2,922,000
	.....
	2010
	
22.25
22.26		$
	3,800,000
3,425,000
	.....
	2011
	
22.27 	The 2010 appropriation includes $367,000 for 2009 and $3,327,000 $2,555,000
22.28 	for 2010.
22.29 	The 2011 appropriation includes $369,000 $945,000 for 2010 and $3,431,000
22.30 	$2,480,000 for 2011.

22.31 	Sec. 25. Laws 2009, chapter 96, article 6, section 11, subdivision 8, is amended to read:
22.32 		Subd. 8.Community education aid. For community education aid under 
22.33 	Minnesota Statutes, section 124D.20:

22.34		$
	585,000 476,000
	.....
	2010
	
22.35		$
	467,000 473,000
	.....
	2011
	
23.1 	The 2010 appropriation includes $73,000 for 2009 and $512,000 $403,000 for 2010.
23.2 	The 2011 appropriation included $56,000 $148,000 for 2010 and $411,000 $325,000
23.3 	for 2011.

23.4 	Sec. 26. Laws 2009, chapter 96, article 6, section 11, subdivision 9, is amended to read:
23.5 		Subd. 9.Adults with disabilities program aid. For adults with disabilities 
23.6 	programs under Minnesota Statutes, section 124D.56:

23.7		$
	710,000 588,000
	.....
	2010
	
23.8		$
	710,000688,000
	.....
	2011
	
23.9 	The 2010 appropriation includes $71,000 $69,000 for 2009 and $639,000 $519,000
23.10 	for 2010.
23.11 	The 2011 appropriation includes $71,000 $191,000 for 2010 and $639,000 $497,000
23.12 	for 2011.

23.13 	Sec. 27. Laws 2009, chapter 96, article 6, section 11, subdivision 12, is amended to 
23.14 	read:
23.15 		Subd. 12.Adult basic education aid. For adult basic education aid under 
23.16 	Minnesota Statutes, section 124D.531:

23.17
23.18		$
	42,975,000
35,671,000
	.....
	2010
	
23.19
23.20		$
	44,258,000
42,732,000
	.....
	2011
	
23.21 	The 2010 appropriation includes $4,187,000 for 2009 and $38,788,000 $31,484,000
23.22 	for 2010.
23.23 	The 2011 appropriation includes $4,309,000 $11,644,000 for 2010 and $39,949,000
23.24 	$31,088,000 for 2011.

23.25 	ARTICLE 5
23.26 	HIGHER EDUCATION

23.27	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
23.28 	The amounts shown in this section summarize direct appropriations, by fund, made 
23.29 	in this article.

23.30			2010
		2011
		Total
	
23.31	General
	$
	(77,000)
	$
	(100,077,000)
	$
	(100,154,000)

23.32	Sec. 2. APPROPRIATIONS.
 	
24.1 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
24.2 	in parentheses, subtracted from the appropriations in Laws 2009, chapter 95, article 1, to 
24.3 	the agencies and for the purposes specified in this article. The appropriations are from the 
24.4 	general fund, or another named fund, and are available for the fiscal years indicated for 
24.5 	each purpose. The figures "2010" and "2011" used in this article mean that the addition 
24.6 	to or subtraction from the appropriation listed under them is available for the fiscal year 
24.7 	ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and 
24.8 	reductions to appropriations for the fiscal year ending June 30, 2010, are effective the 
24.9 	day following final enactment.

24.10				APPROPRIATIONS
	
24.11				Available for the Year
	
24.12				Ending June 30
	
24.13					2010
		2011

24.14
24.15	Sec. 3. MINNESOTA OFFICE OF HIGHER 
EDUCATION
 	$
	(77,000)
	$
	(77,000)
	
24.16 	This reduction is from the appropriation for 
24.17 	agency administration.
24.18 	If an extension of the enhanced federal 
24.19 	medical assistance percentage (FMAP) under 
24.20 	Public Law 111-5, section 5001, to at least 
24.21 	June 30, 2011, is enacted by June 15, 2010, 
24.22 	$35,000,000 is appropriated from the general 
24.23 	fund to the Minnesota Office of Higher 
24.24 	Education for the state grant program, to be 
24.25 	available for the fiscal year ending June 30, 
24.26 	2011.

24.27
24.28
24.29	Sec. 4. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES
 	$
	-0-
	$
	(50,000,000)
	
24.30 	$2,079,000 of the reduction in 2011 is from 
24.31 	the central offices and shared services unit 
24.32 	appropriation. None of these reductions may 
24.33 	be charged back or allocated to the campuses.
25.1 	$47,921,000 of the reduction in 2011 
25.2 	is from the operations and maintenance 
25.3 	appropriation.
25.4 	For fiscal years 2012 and 2013, the base for 
25.5 	operations and maintenance is $580,802,000 
25.6 	each year.

25.7
25.8	Sec. 5. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA

25.9	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	(50,000,000)
	
25.10 	The appropriation reductions for each 
25.11 	purpose are shown in the following 
25.12 	subdivisions.

25.13	Subd. 2.Operations and Maintenance
 		-0-
		(44,606,000)
	
25.14 	For fiscal years 2012 and 2013, the base for 
25.15 	operations and maintenance is $578,370,000 
25.16 	each year.

25.17	Subd. 3.Special Appropriations

25.18	(a) Agriculture and Extension Service
		-0-
		(3,858,000)

25.19	(b) Health Sciences
		-0-
		(389,000)
	
25.20 	$26,000 of the 2011 reduction is from the St. 
25.21 	Cloud family practice residency program.

25.22	(c) Institute of Technology
		-0-
		(102,000)

25.23	(d) System Special
		-0-
		(454,000)

25.24
25.25	(e) University of Minnesota and Mayo 
Foundation Partnership
		-0-
		(591,000)

25.26 	ARTICLE 6
25.27 	ENVIRONMENT AND NATURAL RESOURCES

25.28	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
25.29 	The amounts shown in this section summarize changes to direct appropriations, by 
25.30 	fund, made in this article.

26.1			2010
		2011
		Total
	
26.2	General
	$
	(1,571,000)
	$
	(1,564,000)
	$
	(3,135,000)

26.3	Sec. 2. APPROPRIATIONS.
 	
26.4 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
26.5 	in parentheses, subtracted from the appropriations in Laws 2009, chapter 37, article 1, to 
26.6 	the agencies and for the purposes specified in this article. The appropriations are from the 
26.7 	general fund, or another named fund, and are available for the fiscal years indicated for 
26.8 	each purpose. The figures "2010" and "2011" used in this article mean that the addition to 
26.9 	or subtraction from the appropriation listed under them are available for the fiscal year 
26.10 	ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and 
26.11 	reductions to appropriations for the fiscal year ending June 30, 2010, are effective the 
26.12 	day following final enactment.

26.13				APPROPRIATIONS
	
26.14				Available for the Year
	
26.15				Ending June 30
	
26.16					2010
		2011

26.17	Sec. 3. POLLUTION CONTROL AGENCY

26.18	Subdivision 1.Total Appropriation
 	$
	(110,000)
	$
	(99,000)
	
26.19 	The appropriation reductions for each 
26.20 	purpose are shown in the following 
26.21 	subdivisions.

26.22	Subd. 2.Water
 				(98,000)
		(38,000)
	
26.23 	The $98,000 reduction in fiscal year 2010 
26.24 	is from the agency's activities to develop 
26.25 	minimal impact design standards for urban 
26.26 	stormwater runoff.

26.27	Subd. 3.Land
 				-0-
		(30,000)
	
26.28 	The $30,000 reduction in the second year is 
26.29 	from the environmental health tracking and 
26.30 	biomonitoring activities of the agency.

26.31
26.32	Subd. 4.Environmental 
Assistance and Cross Media
 				-0-
		(16,000)

27.1
27.2	Subd. 5.Administrative 
Support
 				(12,000)
		(15,000)

27.3	Sec. 4. NATURAL RESOURCES

27.4	Subdivision 1.Total Appropriation
 	$
	(1,375,000)
	$
	(1,379,000)
	
27.5 	The appropriation reductions for each 
27.6 	purpose are shown in the following 
27.7 	subdivisions.

27.8
27.9	Subd. 2.Lands and 
Minerals
 				(30,000)
		(30,000)

27.10
27.11	Subd. 3.Water Resources 
Management
 				(84,000)
		(84,000)

27.12
27.13	Subd. 4.Forest 
Management
 				(188,000)
		(188,000)
	
27.14 	$53,000 of the reduction each year is from 
27.15 	activities supporting the Forest Resources 
27.16 	Council with implementation of the 
27.17 	Sustainable Forest Resources Act.

27.18
27.19	Subd. 5.Parks and Trails 
Management
 				(420,000)
		(422,000)

27.20
27.21	Subd. 6.Fish and Wildlife 
Management
 				(265,000)
		(265,000)
	
27.22 	$265,000 of the reduction each year is from 
27.23 	activities for preserving, restoring, and 
27.24 	enhancing grassland/wetland complexes on 
27.25 	public or private land.

27.26	Subd. 7.Ecological Services
 				(46,000)
		(47,000)

27.27	Subd. 8.Enforcement
 				(230,000)
		(230,000)

27.28
27.29	Subd. 9.Operations 
Support
 				(112,000)
		(113,000)

27.30	Sec. 5. METROPOLITAN COUNCIL
 	$
	(86,000)
	$
	(86,000)

27.31 	Sec. 6. Laws 2010, chapter 215, article 3, section 3, subdivision 6, is amended to read:

27.32	Subd. 6.Transfers In
 					
28.1 	(a) The amounts appropriated from the 
28.2 	agency indirect costs account in the special 
28.3 	revenue fund are reduced by $328,000 in 
28.4 	fiscal year 2010 and $462,000 in fiscal year 
28.5 	2011, and those amounts must be transferred 
28.6 	to the general fund by June 30, 2011. The 
28.7 	appropriation reductions are onetime.
28.8 	(b) The commissioner of management and 
28.9 	budget shall transfer $8,000,000 $48,000,000
28.10 	in fiscal year 2011 from the closed landfill 
28.11 	investment fund in Minnesota Statutes, 
28.12 	section 115B.421, to the general fund. The 
28.13 	commissioner shall transfer $4,000,000
28.14 	$12,000,000 on July 1, 2013, and $4,000,000 
28.15 	on July 1, in each of the years 2014, 2015, 
28.16 	2016, and 2017 from the general fund to the 
28.17 	closed landfill investment fund. For the July 
28.18 	1, 2014, each transfer to the closed landfill 
28.19 	investment fund, the commissioner shall 
28.20 	determine the total amount of interest and 
28.21 	other earnings that would have accrued to 
28.22 	the fund if the transfers to the general fund 
28.23 	under this paragraph had not been made and 
28.24 	add this amount to the transfer. The amounts 
28.25 	necessary for these transfers are appropriated 
28.26 	from the general fund in the fiscal years 
28.27 	specified for the transfers.

28.28 	ARTICLE 7
28.29 	ENERGY

28.30	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
28.31 	The amounts shown in this section summarize direct appropriations, by fund, made 
28.32 	in this article.

28.33			2010
		2011
		Total
	
28.34	General
	$
	(247,000)
	$
	(247,000)
	$
	(494,000)

29.1	Sec. 2. APPROPRIATIONS.
 	
29.2 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
29.3 	in parentheses, subtracted from the appropriations in Laws 2009, chapter 37, article 2, to 
29.4 	the agencies and for the purposes specified in this article. The appropriations are from the 
29.5 	general fund, or another named fund, and are available for the fiscal years indicated for 
29.6 	each purpose. The figures "2010" and "2011" used in this article mean that the addition 
29.7 	to or subtraction from the appropriation listed under them is available for the fiscal year 
29.8 	ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and 
29.9 	reductions to appropriations for the fiscal year ending June 30, 2010, are effective the 
29.10 	day following final enactment.

29.11				APPROPRIATIONS
	
29.12				Available for the Year
	
29.13				Ending June 30
	
29.14					2010
		2011

29.15	Sec. 3. DEPARTMENT OF COMMERCE

29.16	Subdivision 1.Total Appropriation
 	$
	(247,000)
	$
	(247,000)
	
29.17 	The appropriation reductions for each 
29.18 	purpose are shown in the following 
29.19 	subdivisions.

29.20	Subd. 2.Administrative Services
 		(97,000)
		(97,000)

29.21	Subd. 3.Market Assurance
 		(150,000)
		(150,000)

29.22 	ARTICLE 8
29.23 	AGRICULTURE

29.24	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
29.25 	The amounts shown in this section summarize direct appropriations, by fund, made 
29.26 	in this article.

29.27			2010
		2011
		Total
	
29.28	General
	$
	(493,000)
	$
	(492,000)
	$
	(985,000)

29.29	Sec. 2. AGRICULTURAL APPROPRIATIONS.
 	
29.30 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
29.31 	in parentheses, subtracted from the appropriations in Laws 2009, chapter 94, article 1, to 
29.32 	the agencies and for the purposes specified in this article. The appropriations are from the 
30.1 	general fund, or another named fund, and are available for the fiscal years indicated for 
30.2 	each purpose. The figures "2010" and "2011" used in this article mean that the addition to 
30.3 	or subtraction from the appropriations listed under them are available for the fiscal year 
30.4 	ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and 
30.5 	reductions to appropriations for the fiscal year ending June 30, 2010, are effective the 
30.6 	day following final enactment.

30.7				APPROPRIATIONS
	
30.8				Available for the Year
	
30.9				Ending June 30
	
30.10					2010
		2011

30.11	Sec. 3. DEPARTMENT OF AGRICULTURE

30.12	Subdivision 1.Total Appropriation
 	$
	(493,000)
	$
	(492,000)
	
30.13 	The appropriation reductions for each 
30.14 	purpose are shown in the following 
30.15 	subdivisions.

30.16	Subd. 2.Protection Services
 		(228,000)
		(228,000)
	
30.17 	$13,000 in fiscal year 2010 and $13,000 in 
30.18 	fiscal year 2011 are reductions from plant 
30.19 	pest surveys.

30.20
30.21	Subd. 3.Agricultural Marketing and 
Development
 		(127,000)
		(127,000)
	
30.22 	$77,000 in fiscal year 2010 and $77,000 in 
30.23 	fiscal year 2011 are reductions for integrated 
30.24 	pest management activities.

30.25
30.26	Subd. 4.Administration and Financial 
Assistance
 		(138,000)
		(137,000)
	
30.27 	$69,000 in fiscal year 2010 and $69,000 in 
30.28 	fiscal year 2011 are reductions from the dairy 
30.29 	and profitability enhancement and dairy 
30.30 	business planning grant programs established 
30.31 	under Laws 1997, chapter 216, section 7, 
30.32 	subdivision 2, and Laws 2001, First Special 
30.33 	Session chapter 2, section 9, subdivision 2.
31.1 	$1,000 in fiscal year 2010 is a reduction from 
31.2 	the appropriation for the administration of 
31.3 	the Feeding Minnesota Task Force.

31.4 	ARTICLE 9
31.5 	ECONOMIC DEVELOPMENT

31.6	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
31.7 	The amounts shown in this section summarize direct appropriations, by fund, made 
31.8 	in this article.

31.9			2010
		2011
		Total
	
31.10	General
	$
	(489,000)
	$
	(745,000)
	$
	(1,234,000)

31.11	Sec. 2. APPROPRIATIONS.
 	
31.12 	The sums shown in the columns marked "Appropriations" are added to, or if shown 
31.13 	in parentheses, subtracted from the appropriations in Laws 2009, chapter 78, article 1, to 
31.14 	the agencies and for the purposes specified in this article. The appropriations are from the 
31.15 	general fund, or another named fund, and are available for the fiscal years indicated for 
31.16 	each purpose. The figures "2010" and "2011" used in this article mean that the addition 
31.17 	to or subtraction from the appropriation listed under them is available for the fiscal year 
31.18 	ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and 
31.19 	reductions to appropriations for the fiscal year ending June 30, 2010, are effective the 
31.20 	day following final enactment.

31.21				APPROPRIATIONS
	
31.22				Available for the Year
	
31.23				Ending June 30
	
31.24					2010
		2011

31.25
31.26	Sec. 3. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

31.27	Subdivision 1.Total Appropriation
 	$
	(285,000)
	$
	(285,000)
	
31.28 	The appropriation reductions for each 
31.29 	purpose are shown in the following 
31.30 	subdivisions.

31.31
31.32	Subd. 2.Business and Community 
Development
 		(87,000)
		(87,000)
	
32.1 	$25,000 in 2010 and $25,000 in 2011 are 
32.2 	from the appropriation for the Office of 
32.3 	Science and Technology.

32.4	Subd. 3.Workforce Development
 		(115,000)
		(115,000)
	
32.5 	$15,000 in 2010 and $15,000 in 2011 are 
32.6 	from the appropriation for the Minnesota job 
32.7 	skills partnership program under Minnesota 
32.8 	Statutes, sections 116L.01 to 116L.17.
32.9 	$11,000 in 2010 and $11,000 in 2011 are from 
32.10 	the appropriation for administrative expenses 
32.11 	to programs that provide employment 
32.12 	support services to persons with mental 
32.13 	illness under Minnesota Statutes, sections 
32.14 	268A.13 and 268A.14.
32.15 	$89,000 in 2010 and $89,000 in 2011 are 
32.16 	from the appropriation for state services for 
32.17 	the blind activities.

32.18	Subd. 4.State-Funded Administration
 		(83,000)
		(83,000)

32.19	Sec. 4. HOUSING FINANCE AGENCY
 	$
	-0-
	$
	(256,000)
	
32.20 	This reduction is from the appropriation to 
32.21 	the Housing Finance Agency for the housing 
32.22 	rehabilitation program under Minnesota 
32.23 	Statutes, section 462A.05, subdivision 14, 
32.24 	for rental housing developments.
32.25 	On or before June 30, 2010, the Housing 
32.26 	Finance Agency shall transfer $256,000 
32.27 	from the housing rehabilitation program in 
32.28 	the housing development fund to the general 
32.29 	fund.

32.30
32.31	Sec. 5. DEPARTMENT OF LABOR AND 
INDUSTRY
 	$
	(20,000)
	$
	(20,000)
	
33.1 	This reduction is from the general 
33.2 	fund appropriation for labor 
33.3 	standards/apprenticeship.

33.4
33.5	Sec. 6. BUREAU OF MEDIATION 
SERVICES
 	$
	(16,000)
	$
	(16,000)
	
33.6 	This reduction is from the general fund 
33.7 	appropriation for mediation services.

33.8
33.9	Sec. 7. MINNESOTA HISTORICAL 
SOCIETY

33.10	Subdivision 1.Total Appropriation
 	$
	(168,000)
	$
	(168,000)
	
33.11 	The appropriation reductions for each 
33.12 	purpose are shown in the following 
33.13 	subdivisions.

33.14	Subd. 2.Education and Outreach
 		(96,000)
		(96,000)

33.15	Subd. 3.Preservation and Access
 		(72,000)
		(72,000)

33.16 	ARTICLE 10
33.17 	TRANSPORTATION

33.18	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
33.19 	The amounts shown in this section summarize direct appropriations, by fund, made 
33.20 	in this article.

33.21			2010
		2011
		Total
	
33.22	General
	$
	(1,649,000)
	$
	(11,649,000)
	$
	(13,298,000)

33.23	Sec. 2. APPROPRIATIONS.
 	
33.24 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
33.25 	in parentheses, subtracted from the appropriations in Laws 2009, chapter 36, article 1, to 
33.26 	the agencies and for the purposes specified in this article. The appropriations are from the 
33.27 	general fund, or another named fund, and are available for the fiscal years indicated for 
33.28 	each purpose. The figures "2010" and "2011" used in this article mean that the addition to 
33.29 	or subtraction from the appropriation listed under them are available for the fiscal year 
33.30 	ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and 
33.31 	reductions to appropriations for the fiscal year ending June 30, 2010, are effective the 
33.32 	day following final enactment.

34.1				APPROPRIATIONS
	
34.2				Available for the Year
	
34.3				Ending June 30
	
34.4					2010
		2011

34.5	Sec. 3. TRANSPORTATION

34.6	Subdivision 1.Total Appropriation
 	$
	(24,000)
	$
	(1,474,000)
	
34.7 	The appropriation reductions for each 
34.8 	purpose are shown in the following 
34.9 	subdivisions.

34.10	Subd. 2.Multimodal Systems

34.11	(a) Transit
		(9,000)
		(1,459,000)
	
34.12 	This reduction is to the Transit Improvement 
34.13 	Administration appropriation.
34.14 	The base appropriation from the general fund 
34.15 	for fiscal years 2012 and 2013 is $16,292,000 
34.16 	each year.

34.17	(b) Freight
		(9,000)
		(9,000)
	
34.18 	This reduction is to the rail service plan 
34.19 	appropriation.

34.20	(c) Electronic Communication
		(6,000)
		(6,000)
	
34.21 	This reduction is to the Roosevelt Tower 
34.22 	appropriation.

34.23	Sec. 4. METROPOLITAN COUNCIL

34.24	Subdivision 1.Total Appropriation
 	$
	(1,625,000)
	$
	(10,175,000)
	
34.25 	The appropriation reductions for each 
34.26 	purpose are shown in the following 
34.27 	subdivisions.

34.28	Subd. 2.Bus Transit
 		(1,506,000)
		(10,056,000)
	
34.29 	This reduction is to the appropriation for bus 
34.30 	system operations.
35.1 	The base appropriation for fiscal years 2012 
35.2 	and 2013 is $59,796,000 each year.

35.3	Subd. 3.Rail Operations
 		(119,000)
		(119,000)
	
35.4 	This reduction is to the appropriation for rail 
35.5 	systems.
35.6 	The base appropriation for fiscal years 2012 
35.7 	and 2013 is $5,174,000 each year.

35.8 	ARTICLE 11
35.9 	PUBLIC SAFETY

35.10	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
35.11 	The amounts shown in this section summarize direct appropriations, by fund, made 
35.12 	in this article.

35.13			2010
		2011
		Total
	
35.14	General
	$
	(79,000)
	$
	(79,000)
	$
	(158,000)

35.15	Sec. 2. APPROPRIATIONS.
	
35.16 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
35.17 	in parentheses, subtracted from the appropriations in Laws 2009, chapter 83, article 1, to 
35.18 	the agencies and for the purposes specified in this article. The appropriations are from the 
35.19 	general fund, or another named fund, and are available for the fiscal years indicated for 
35.20 	each purpose. The figures "2010" and "2011" used in this article mean that the addition 
35.21 	to or subtraction from the appropriation listed under them is available for the fiscal year 
35.22 	ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and 
35.23 	reductions to appropriations for the fiscal year ending June 30, 2010, are effective the 
35.24 	day following final enactment.

35.25				APPROPRIATIONS
	
35.26				Available for the Year
	
35.27				Ending June 30
	
35.28					2010
		2011

35.29	Sec. 3.  HUMAN RIGHTS
	$
	(79,000)
	$
	(79,000)

36.1 	ARTICLE 12
36.2 	STATE GOVERNMENT

36.3	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
36.4 	The amounts shown in this section summarize direct appropriations, by fund, made 
36.5 	in this article.

36.6			2010
		2011
		Total
	
36.7	General
	$
	(1,694,000)
	$
	(15,820,000)
	$
	(17,514,000)

36.8	Sec. 2. APPROPRIATIONS.
 	
36.9 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
36.10 	in parentheses, subtracted from, the appropriations in Laws 2009, chapter 101, article 1, to 
36.11 	the agencies and for the purposes specified in this article. The appropriations are from the 
36.12 	general fund, or another named fund, and are available for the fiscal years indicated for 
36.13 	each purpose. The figures "2010" and "2011" used in this article mean that the addition 
36.14 	to or subtraction from the appropriation listed under them is available for the fiscal year 
36.15 	ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and 
36.16 	reductions to appropriations for the fiscal year ending June 30, 2010, are effective the 
36.17 	day following final enactment.

36.18				APPROPRIATIONS
	
36.19				Available for the Year
	
36.20				Ending June 30
	
36.21					2010
		2011

36.22
36.23	Sec. 3. GOVERNOR AND LIEUTENANT 
GOVERNOR
 	$
	(81,000)
	$
	(81,000)
	
36.24 	$13,000 of the reduction in each of 
36.25 	fiscal years 2010 and 2011 are from the 
36.26 	appropriation for necessary expenses in the 
36.27 	normal performance of the governor's and 
36.28 	lieutenant governor's duties for which no 
36.29 	other reimbursement is provided.

36.30
36.31	Sec. 4. OFFICE OF ENTERPRISE 
TECHNOLOGY
 	$
	(130,000)
	$
	(130,000)
	
36.32 	$96,000 of the reduction in each of 
36.33 	fiscal years 2010 and 2011 are from the 
37.1 	appropriation for information technology 
37.2 	security.

37.3	Sec. 5. ADMINISTRATION
 	$
	(100,000)
	$
	(200,000)
	
37.4 	These reductions are from the Government 
37.5 	and Citizen Services Program.
37.6 	$162,000 of the balance in the central stores 
37.7 	fund is transferred to the general fund on 
37.8 	or before June 30, 2010. This is a onetime 
37.9 	transfer.
37.10 	The base appropriation from the general fund 
37.11 	for the Government and Citizen Services 
37.12 	Program for fiscal years 2012 and 2013 is 
37.13 	$17,116,000 each year.

37.14	Sec. 6. MANAGEMENT AND BUDGET
 	$
	(459,000)
	$
	(459,000)

37.15	Health Care Access Fund Loan
					
37.16 	(a) By June 30, 2011, the commissioner of 
37.17 	management and budget shall transfer up to 
37.18 	$40,000,000 from the balance of the health 
37.19 	care access fund to the general fund.
37.20 	(b) By June 30, 2012, the commissioner of 
37.21 	management and budget shall transfer the 
37.22 	amount transferred in paragraph (a) from the 
37.23 	general fund to the health care access fund.
37.24 	(c) The amounts necessary to complete 
37.25 	these transfers are appropriated to the 
37.26 	commissioner from each fund.

37.27	Sec. 7. REVENUE
 	$
	(924,000)
	$
	(950,000)
	
37.28 	These reductions are from the tax system 
37.29 	management program.

37.30 	Sec. 8. GENERAL REDUCTION.
 38.1 		Subdivision 1.Plan submitted; effective date. By June 15, 2010, the commissioner 
38.2 	of management and budget, in consultation with the affected agencies, shall reduce 
38.3 	general fund appropriations for fiscal year 2010 or 2011 to the affected agencies listed in 
38.4 	this section by a total of $14,000,000. No single appropriation or program may be reduced 
38.5 	by more than 1.5 percent. These reductions are onetime.
38.6 		Subd. 2.Report. By July 1, 2010, the commissioner of management and budget 
38.7 	shall submit to the chair and ranking minority member of the senate and house of 
38.8 	representatives Committees on Finance and Ways and Means a report of the appropriations 
38.9 	reduced.
38.10 		Subd. 3.Affected agencies. The agencies whose appropriations must be reduced 
38.11 	are the following:
38.12 	(1) Department of Education, state agency operations;
38.13 	(2) Minnesota Office of Higher Education, state agency operations;
38.14 	(3) Department of Human Services, state agency operations;
38.15 	(4) Department of Health, state agency operations;
38.16 	(5) Pollution Control Agency, all general fund programs;
38.17 	(6) Department of Natural Resources, all general fund programs;
38.18 	(7) Board of Water and Soil Resources, all general fund programs;
38.19 	(8) Department of Commerce, all general fund programs;
38.20 	(9) Department of Agriculture, all general fund programs;
38.21 	(10) Department of Employment and Economic Development, all general fund 
38.22 	programs;
38.23 	(11) Explore Minnesota Tourism, all general fund programs;
38.24 	(12) Housing Finance Agency, all general fund programs;
38.25 	(13) Department of Labor and Industry, all general fund programs;
38.26 	(14) Bureau of Mediation Services, all general fund programs;
38.27 	(15) Minnesota Historical Society, all general fund programs;
38.28 	(16) Department of Transportation, all general fund programs, except greater 
38.29 	Minnesota transit;
38.30 	(17) Department of Public Safety, all general fund programs;
38.31 	(18) Department of Corrections, all general fund programs;
38.32 	(19) Department of Human Rights, all general fund programs;
38.33 	(20) Office of Enterprise Technology, all general fund programs;
38.34 	(21) Department of Administration, all general fund programs;
38.35 	(22) Department of Management and Budget, state agency operations; and
39.1 	(23) Department of Revenue, state agency operations;
39.2 	(24) all other executive branch state agencies, as defined in Minnesota Statutes, 
39.3 	section 16A.011, subdivision 12a, all general fund programs.

39.4 	ARTICLE 13
39.5 	HEALTH AND HUMAN SERVICES

39.6	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
39.7 	The amounts shown in this section summarize direct appropriations, by fund, made 
39.8 	in this article.

39.9			2010
		2011
		Total
	
39.10	General
	$
	(74,704,000)
	$
	(83,052,000)
	$
	(157,756,000)

39.11	Sec. 2. APPROPRIATIONS.
 	
39.12 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
39.13 	in parentheses, subtracted from the appropriations in Laws 2009, chapter 79, article 13, 
39.14 	as amended by Laws 2009, chapter 173, article 2, to the agencies and for the purposes 
39.15 	specified in this article. The appropriations are from the general fund and are available 
39.16 	for the fiscal years indicated for each purpose. The figures "2010" and "2011" used in 
39.17 	this article mean that the addition to or subtraction from the appropriation listed under 
39.18 	them is available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively. 
39.19 	Supplemental appropriations and reductions to appropriations for the fiscal year ending 
39.20 	June 30, 2010, are effective the day following final enactment unless a different effective 
39.21 	date is explicit. All reductions in this article are onetime, unless otherwise stated. 

39.22				APPROPRIATIONS
	
39.23				Available for the Year
	
39.24				Ending June 30
	
39.25					2010
		2011

39.26
39.27	Sec. 3. DEPARTMENT OF HUMAN 
SERVICES

39.28	Subdivision 1.Total Appropriation
 	$
	(74,177,000)
	$
	(82,527,000)
	
39.29 	The appropriation reductions for each 
39.30 	purpose are shown in the following 
39.31 	subdivisions.

39.32
39.33	Subd. 2.Agency Management; Financial 
Operations
 		(3,289,000)
		(3,282,000)

40.1
40.2	Subd. 3.Children and Economic Assistance 
Grants

40.3	(a) Child Support Enforcement Grants
		(3,400,000)
		(1,249,000)

40.4	(b) Children's Services Grants
		(600,000)
		-0-
	
40.5 	American Indian Child Welfare Projects.
40.6 	Notwithstanding Laws 2009, chapter 79, 
40.7 	article 2, section 35, $600,000 of the fiscal 
40.8 	year 2009 funds extended in fiscal year 2010 
40.9 	cancel to the general fund.

40.10	(c) Children and Community Services Grants
		(16,900,000)
		(1,500,000)

40.11	(d) General Assistance Grants
		(5,267,000)
		(3,190,000)

40.12	(e) Minnesota Supplemental Aid Grants
		(733,000)
		-0-

40.13	(f) Group Residential Housing Grants
		(467,000)
		(706,000)

40.14	Subd. 4.Basic Health Care Grants

40.15
40.16	(a) Medical Assistance Basic Health Care 
Grants - Families and Children
		(5,599,000)
		(30,585,000)

40.17
40.18	(b) Medical Assistance Basic Health Care 
Grants - Elderly and Disabled
		(2,331,000)
		(24,062,000)
	
40.19 	Hospital Fee-for-Service Payment Delay.
40.20 	Payments from the Medicaid Management 
40.21 	Information System that would otherwise 
40.22 	have been made for inpatient hospital 
40.23 	services for Minnesota health care program 
40.24 	enrollees must be delayed as follows: for 
40.25 	fiscal year 2011, June payments must be 
40.26 	included in the first payments in fiscal 
40.27 	year 2012. The provisions of Minnesota 
40.28 	Statutes, section 16A.124, do not apply 
40.29 	to these delayed payments. This payment 
40.30 	delay includes, and is not in addition to, the 
40.31 	payment delay for inpatient hospital services 
40.32 	in Laws 2009, chapter 79, article 13, section 
40.33 	3, subdivision 6, paragraph (c).
41.1 	Nonhospital Fee-for-Service Payment 
41.2 	Delay. Payments from the Medicaid 
41.3 	Management Information System that would 
41.4 	otherwise have been made for nonhospital 
41.5 	acute care services for Minnesota health 
41.6 	care program enrollees must be delayed as 
41.7 	follows: for fiscal year 2011, June payments 
41.8 	must be included in the first payments in 
41.9 	fiscal year 2012. This payment delay must 
41.10 	not include nursing facilities, intermediate 
41.11 	care facilities for persons with developmental 
41.12 	disabilities, home and community-based 
41.13 	services, prepaid health plans, personal care 
41.14 	provider organizations, and home health 
41.15 	agencies. The provisions of Minnesota 
41.16 	Statutes, section 16A.124, do not apply 
41.17 	to these delayed payments. This payment 
41.18 	delay includes, and is not in addition to, the 
41.19 	payment delay for nonhospital acute care 
41.20 	services in Laws 2009, chapter 79, article 13, 
41.21 	section 3, subdivision 6, paragraph (c).

41.22	(c) General Assistance Medical Care Grants
		(15,879,000)
		-0-

41.23
41.24	Subd. 5.Health Care Management; 
Administration
 		(180,000)
		(360,000)
	
41.25 	Incentive Program and Outreach Grants.
41.26 	The general fund appropriation for the 
41.27 	incentive program under Laws 2008, chapter 
41.28 	358, article 5, section 3, subdivision 4, 
41.29 	paragraph (b), is canceled. This paragraph is 
41.30 	effective retroactively from January 1, 2010.

41.31	Subd. 6.Continuing Care Grants

41.32	(a) Aging and Adult Services Grants
		(3,600,000)
		(3,600,000)
	
41.33 	Community Service/Service Development 
41.34 	Grants Reduction. Effective retroactively 
41.35 	from July 1, 2009, funding for grants made 
42.1 	under Minnesota Statutes, sections 256.9754 
42.2 	and 256B.0917, subdivision 13, is reduced 
42.3 	by $3,600,000 for each year of the biennium. 
42.4 	Grants made during the biennium under 
42.5 	Minnesota Statutes, section 256.9754, shall 
42.6 	not be used for new construction or building 
42.7 	renovation.
42.8 	Aging Grants Delay. Aging grants must be 
42.9 	reduced by $917,000 in fiscal year 2011 and 
42.10 	increased by $917,000 in fiscal year 2012. 
42.11 	These adjustments are onetime and must not 
42.12 	be applied to the base. This provision expires 
42.13 	June 30, 2012.

42.14
42.15	(b) Medical Assistance Long-Term Care 
Facilities Grants
		(3,827,000)
		(2,520,000)
	
42.16 	ICF/MR Variable Rates Suspension.
42.17 	Effective retroactively from July 1, 2009, 
42.18 	to June 30, 2010, no new variable rates 
42.19 	shall be authorized for intermediate care 
42.20 	facilities for persons with developmental 
42.21 	disabilities under Minnesota Statutes, section 
42.22 	256B.5013, subdivision 1.
42.23 	ICF/MR Occupancy Rate Adjustment 
42.24 	Suspension. Effective retroactively from 
42.25 	July 1, 2009, to June 30, 2011, approval 
42.26 	of new applications for occupancy rate 
42.27 	adjustments for unoccupied short-term 
42.28 	beds under Minnesota Statutes, section 
42.29 	256B.5013, subdivision 7, is suspended.

42.30
42.31	(c) Medical Assistance Long-Term Care 
Waivers and Home Care Grants
		(2,318,000)
		(4,477,000)
	
42.32 	Developmental Disability Waiver Acuity 
42.33 	Factor. Effective retroactively from January 
42.34 	1, 2010, the January 1, 2010, one percent 
42.35 	growth factor in the developmental disability 
43.1 	waiver allocations under Minnesota Statutes, 
43.2 	section 256B.092, subdivisions 4 and 5, 
43.3 	that is attributable to changes in acuity, is 
43.4 	suspended to June 30, 2011.

43.5	(d) Deaf and Hard-of-Hearing Grants
		-0-
		(169,000)
	
43.6 	Deaf and Hard-of-Hearing Services 
43.7 	Grants Delay. Deaf and hard-of-hearing 
43.8 	services grants must be reduced by $169,000 
43.9 	in fiscal year 2011 and increased by $169,000 
43.10 	in fiscal year 2012. These adjustments are 
43.11 	onetime and must not be applied to the base. 
43.12 	This provision expires June 30, 2012.

43.13	(e) Adult Mental Health Grants
		(5,000,000)
		-0-

43.14	(f) Chemical Dependency Entitlement Grants
		(3,622,000)
		(3,622,000)

43.15
43.16	(g) Chemical Dependency Nonentitlement 
Grants
		(393,000)
		(393,000)

43.17	(h) Other Continuing Care Grants
		-0-
		(1,414,000)
	
43.18 	Other Continuing Care Grants Delay.
43.19 	Other continuing care grants must be reduced 
43.20 	by $1,414,000 in fiscal year 2011 and 
43.21 	increased by $1,414,000 in fiscal year 2012. 
43.22 	These adjustments are onetime and must not 
43.23 	be applied to the base. This provision expires 
43.24 	June 30, 2012.

43.25	Subd. 7.Continuing Care Management
 		(350,000)
		-0-
	
43.26 	County Maintenance of Effort. The general 
43.27 	fund appropriation for the State-County 
43.28 	Results Accountability and Service Delivery 
43.29 	Reform under Minnesota Statutes, chapter 
43.30 	402A, is canceled. This paragraph is 
43.31 	effective retroactively from July 1, 2009.

43.32
43.33	Subd. 8.State-Operated Services; Adult 
Mental Health Services
 		(422,000)
		(4,588,000)

44.1	Sec. 4. DEPARTMENT OF HEALTH

44.2	Subdivision. 1.Total Appropriation
 	$
	(527,000)
	$
	(525,000)
	
44.3 	The appropriation reductions for each 
44.4 	purpose are shown in the following 
44.5 	subdivisions.

44.6
44.7	Subd. 2.Community and Family Health 
Promotion
 		(53,000)
		(355,000)

44.8	Subd. 3.Policy Quality and Compliance
 		(118,000)
		(74,000)
	
44.9 	Office of Unlicensed Health Care Practice.
44.10 	Of the general fund reduction $74,000 
44.11 	in fiscal year 2011 is from the Office of 
44.12 	Unlicensed Complementary and Alternative 
44.13 	Health Care Practice.

44.14	Subd. 4.Health Protection
 		(225,000)
		(74,000)

44.15	Subd. 5.Administrative Support Services
 		(131,000)
		(22,000)

44.16 	Sec. 5. Laws 2009, chapter 79, article 13, section 3, subdivision 8, as amended by 
44.17 	Laws 2009, chapter 173, article 2, section 1, subdivision 8, is amended to read:

44.18	Subd. 8.Continuing Care Grants
 					
44.19 	The amounts that may be spent from the 
44.20 	appropriation for each purpose are as follows:

44.21	(a) Aging and Adult Services Grants
		13,499,000
		15,805,000
	
44.22 	Base Adjustment. The general fund base is 
44.23 	increased by $5,751,000 in fiscal year 2012 
44.24 	and $6,705,000 in fiscal year 2013.
44.25 	Information and Assistance 
44.26 	Reimbursement. Federal administrative 
44.27 	reimbursement obtained from information 
44.28 	and assistance services provided by the 
44.29 	Senior LinkAge or Disability Linkage lines 
44.30 	to people who are identified as eligible for 
44.31 	medical assistance shall be appropriated to 
44.32 	the commissioner for this activity.
45.1 	Community Service Development Grant 
45.2 	Reduction. Funding for community service 
45.3 	development grants must be reduced by 
45.4 	$260,000 for fiscal year 2010; $284,000 in 
45.5 	fiscal year 2011; $43,000 in fiscal year 2012; 
45.6 	and $43,000 in fiscal year 2013. Base level 
45.7 	funding shall be restored in fiscal year 2014.
45.8 	Community Service Development Grant 
45.9 	Community Initiative. Funding for 
45.10 	community service development grants shall 
45.11 	be used to offset the cost of aging support 
45.12 	grants. Base level funding shall be restored 
45.13 	in fiscal year 2014.
45.14 	Senior Nutrition Use of Federal Funds.
45.15 	For fiscal year 2010, general fund grants 
45.16 	for home-delivered meals and congregate 
45.17 	dining shall be reduced by $500,000. The 
45.18 	commissioner must replace these general 
45.19 	fund reductions with equal amounts from 
45.20 	federal funding for senior nutrition from the 
45.21 	American Recovery and Reinvestment Act 
45.22 	of 2009.

45.23	(b) Alternative Care Grants
		50,234,000
		48,576,000
	
45.24 	Base Adjustment. The general fund base is 
45.25 	decreased by $3,598,000 in fiscal year 2012 
45.26 	and $3,470,000 in fiscal year 2013.
45.27 	Alternative Care Transfer. Any money 
45.28 	allocated to the alternative care program that 
45.29 	is not spent for the purposes indicated does 
45.30 	not cancel but must be transferred to the 
45.31 	medical assistance account.

45.32
45.33	(c) Medical Assistance Grants; Long-Term 
Care Facilities.
		367,444,000
		419,749,000

45.34
45.35	(d) Medical Assistance Long-Term Care 
Waivers and Home Care Grants
		853,567,000
		1,039,517,000
	
46.1 	Manage Growth in TBI and CADI 
46.2 	Waivers. During the fiscal years beginning 
46.3 	on July 1, 2009, and July 1, 2010, the 
46.4 	commissioner shall allocate money for home 
46.5 	and community-based waiver programs 
46.6 	under Minnesota Statutes, section 256B.49, 
46.7 	to ensure a reduction in state spending that is 
46.8 	equivalent to limiting the caseload growth of 
46.9 	the TBI waiver to 12.5 allocations per month 
46.10 	each year of the biennium and the CADI 
46.11 	waiver to 95 allocations per month each year 
46.12 	of the biennium. Limits do not apply: (1) 
46.13 	when there is an approved plan for nursing 
46.14 	facility bed closures for individuals under 
46.15 	age 65 who require relocation due to the 
46.16 	bed closure; (2) to fiscal year 2009 waiver 
46.17 	allocations delayed due to unallotment; or (3) 
46.18 	to transfers authorized by the commissioner 
46.19 	from the personal care assistance program 
46.20 	of individuals having a home care rating 
46.21 	of "CS," "MT," or "HL." Priorities for the 
46.22 	allocation of funds must be for individuals 
46.23 	anticipated to be discharged from institutional 
46.24 	settings or who are at imminent risk of a 
46.25 	placement in an institutional setting.
46.26 	Manage Growth in DD Waiver. The 
46.27 	commissioner shall manage the growth in 
46.28 	the DD waiver by limiting the allocations 
46.29 	included in the February 2009 forecast to 15 
46.30 	additional diversion allocations each month 
46.31 	for the calendar years that begin on January 
46.32 	1, 2010, and January 1, 2011. Additional 
46.33 	allocations must be made available for 
46.34 	transfers authorized by the commissioner 
46.35 	from the personal care program of individuals 
47.1 	having a home care rating of "CS," "MT," 
47.2 	or "HL."
47.3 	Adjustment to Lead Agency Waiver 
47.4 	Allocations. Prior to the availability of the 
47.5 	alternative license defined in Minnesota 
47.6 	Statutes, section 245A.11, subdivision 8, 
47.7 	the commissioner shall reduce lead agency 
47.8 	waiver allocations for the purposes of 
47.9 	implementing a moratorium on corporate 
47.10 	foster care.
47.11 	Alternatives to Personal Care Assistance 
47.12 	Services. Base level funding of $3,237,000 
47.13 	in fiscal year 2012 and $4,856,000 in 
47.14 	fiscal year 2013 is to implement alternative 
47.15 	services to personal care assistance services 
47.16 	for persons with mental health and other 
47.17 	behavioral challenges who can benefit 
47.18 	from other services that more appropriately 
47.19 	meet their needs and assist them in living 
47.20 	independently in the community. These 
47.21 	services may include, but not be limited to, a 
47.22 	1915(i) state plan option.

47.23	(e) Mental Health Grants

47.24	Appropriations by Fund
	
47.25	General
	77,739,000
	77,739,000
	
47.26	Health Care Access
	750,000
	750,000
	
47.27	Lottery Prize
	1,508,000
	1,508,000
	
47.28 	Funding Usage. Up to 75 percent of a fiscal 
47.29 	year's appropriation for adult mental health 
47.30 	grants may be used to fund allocations in that 
47.31 	portion of the fiscal year ending December 
47.32 	31.

47.33	(f) Deaf and Hard-of-Hearing Grants
		1,930,000
		1,917,000

47.34	(g) Chemical Dependency Entitlement Grants
		111,303,000
		122,822,000
	
48.1 	Payments for Substance Abuse Treatment.
48.2 	For services provided during fiscal years 
48.3 	2010 and 2011, county-negotiated rates and 
48.4 	provider claims to the consolidated chemical 
48.5 	dependency fund must not exceed rates 
48.6 	charged for these services on January 1, 
48.7 	2009; and rates for fiscal years 2010 and 
48.8 	2011 must not exceed 160 percent of the 
48.9 	average rate on January 1, 2009, for each 
48.10 	group of vendors with similar attributes. 
48.11 	For services provided in fiscal years 2012 
48.12 	and 2013, statewide average rates under 
48.13 	the new rate methodology to be developed 
48.14 	under Minnesota Statutes, section 254B.12, 
48.15 	must not exceed the average rates charged 
48.16 	for these services on January 1, 2009, plus a 
48.17 	state share increase of $3,787,000 for fiscal 
48.18 	year 2012 and $5,023,000 for fiscal year 
48.19 	2013. Notwithstanding any provision to the 
48.20 	contrary in this article, this provision expires 
48.21 	on June 30, 2013.
48.22 	Chemical Dependency Special Revenue 
48.23 	Account. For fiscal year 2010, $750,000 
48.24 	must be transferred from the consolidated 
48.25 	chemical dependency treatment fund 
48.26 	administrative account and deposited into the 
48.27 	general fund.
48.28 	County CD Share of MA Costs for 
48.29 	ARRA Compliance. Notwithstanding the 
48.30 	provisions of Minnesota Statutes, chapter 
48.31 	254B, for chemical dependency services 
48.32 	provided during the period October 1, 2008, 
48.33 	to December 31, 2010, and reimbursed by 
48.34 	medical assistance at the enhanced federal 
48.35 	matching rate provided under the American 
48.36 	Recovery and Reinvestment Act of 2009, the 
49.1 	county share is 30 percent of the nonfederal 
49.2 	share. This provision is effective the day 
49.3 	following final enactment.

49.4
49.5	(h) Chemical Dependency Nonentitlement 
Grants
		1,729,000
		1,729,000

49.6	(i) Other Continuing Care Grants
		19,201,000
		17,528,000
	
49.7 	Base Adjustment. The general fund base is 
49.8 	increased by $2,639,000 in fiscal year 2012 
49.9 	and increased by $3,854,000 in fiscal year 
49.10 	2013.
49.11 	Technology Grants. $650,000 in fiscal 
49.12 	year 2010 and $1,000,000 in fiscal year 
49.13 	2011 are for technology grants, case 
49.14 	consultation, evaluation, and consumer 
49.15 	information grants related to developing and 
49.16 	supporting alternatives to shift-staff foster 
49.17 	care residential service models.
49.18 	Other Continuing Care Grants; HIV 
49.19 	Grants. Money appropriated for the HIV 
49.20 	drug and insurance grant program in fiscal 
49.21 	year 2010 may be used in either year of the 
49.22 	biennium.
49.23 	Quality Assurance Commission. Effective 
49.24 	July 1, 2009, state funding for the quality 
49.25 	assurance commission under Minnesota 
49.26 	Statutes, section 256B.0951, is canceled.

49.27 	Sec. 6. Laws 2009, chapter 79, article 13, section 4, subdivision 4, as amended by 
49.28 	Laws 2009, chapter 173, article 2, section 2, subdivision 4, is amended to read:

49.29	Subd. 4.Health Protection

49.30	Appropriations by Fund
	
49.31	General
	9,871,000
	9,780,000
	
49.32
49.33	State Government 
Special Revenue
	30,209,000
	30,209,000
	
50.1 	Base Adjustment. The general fund base is 
50.2 	reduced by $50,000 in each of fiscal years 
50.3 	2012 and 2013.
50.4 	Health Protection Appropriations. (a) 
50.5 	$163,000 each year is for the lead abatement 
50.6 	grant program. 
50.7 	(b) $100,000 each year is for emergency 
50.8 	preparedness and response activities. 
50.9 	(c) $50,000 each year is for tuberculosis 
50.10 	prevention and control. This is a onetime 
50.11 	appropriation.
50.12 	(d) $55,000 in fiscal year 2010 is for 
50.13 	pentachlorophenol.
50.14 	(e) $20,000 in fiscal year 2010 is for a PFC 
50.15 	Citizens Advisory Group.
50.16 	American Recovery and Reinvestment 
50.17 	Act Funds. Federal funds received 
50.18 	by the commissioner for immunization 
50.19 	operations from the American Recovery 
50.20 	and Reinvestment Act of 2009, Public Law 
50.21 	111-5, are appropriated to the commissioner 
50.22 	for the purposes of the grant.

50.23 	Sec. 7. Minnesota Statutes 2009 Supplement, section 256B.056, subdivision 3c, 
50.24 	is amended to read:
50.25 		Subd. 3c.Asset limitations for families and children. A household of two or 
50.26 	more persons must not own more than $20,000 in total net assets except that this asset 
50.27 	limit shall be $6,000 for the period January 1, 2011, through June 30, 2011, plus $200 
50.28 	for each additional legal dependent, and a household of one person must not own more 
50.29 	than $10,000 in total net assets, except that this asset limit shall be $3,000 for the period 
50.30 	January 1, 2011, through June 30, 2011. In addition to these maximum amounts, an 
50.31 	eligible individual or family may accrue interest on these amounts, but they must be 
50.32 	reduced to the maximum at the time of an eligibility redetermination. The value of assets 
50.33 	that are not considered in determining eligibility for medical assistance for families and 
50.34 	children is the value of those assets excluded under the AFDC state plan as of July 16, 
51.1 	1996, as required by the Personal Responsibility and Work Opportunity Reconciliation 
51.2 	Act of 1996 (PRWORA), Public Law 104-193, with the following exceptions:
51.3 	(1) household goods and personal effects are not considered;
51.4 	(2) capital and operating assets of a trade or business up to $200,000 are not 
51.5 	considered, except that a bank account that contains personal income or assets, or is used to 
51.6 	pay personal expenses, is not considered a capital or operating asset of a trade or business;
51.7 	(3) one motor vehicle is excluded for each person of legal driving age who is 
51.8 	employed or seeking employment;
51.9 	(4) assets designated as burial expenses are excluded to the same extent they are 
51.10 	excluded by the Supplemental Security Income program;
51.11 	(5) court-ordered settlements up to $10,000 are not considered;
51.12 	(6) individual retirement accounts and funds are not considered; and
51.13 	(7) assets owned by children are not considered.
51.14 	The assets specified in clause (2) must be disclosed to the local agency at the time of 
51.15 	application and at the time of an eligibility redetermination, and must be verified upon 
51.16 	request of the local agency.

51.17 	EFFECTIVE DATE. This section is effective January 1, 2011.

51.18 	Sec. 8. Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 11, 
51.19 	is amended to read:
51.20 		Subd. 11.Personal care assistant; requirements. (a) A personal care assistant 
51.21 	must meet the following requirements:
51.22 	(1) be at least 18 years of age with the exception of persons who are 16 or 17 years 
51.23 	of age with these additional requirements:
51.24 	(i) supervision by a qualified professional every 60 days; and
51.25 	(ii) employment by only one personal care assistance provider agency responsible 
51.26 	for compliance with current labor laws;
51.27 	(2) be employed by a personal care assistance provider agency;
51.28 	(3) enroll with the department as a personal care assistant after clearing a background 
51.29 	study. Before a personal care assistant provides services, the personal care assistance 
51.30 	provider agency must initiate a background study on the personal care assistant under 
51.31 	chapter 245C, and the personal care assistance provider agency must have received a 
51.32 	notice from the commissioner that the personal care assistant is:
51.33 	(i) not disqualified under section 245C.14; or
52.1 	(ii) is disqualified, but the personal care assistant has received a set aside of the 
52.2 	disqualification under section 245C.22;
52.3 	(4) be able to effectively communicate with the recipient and personal care 
52.4 	assistance provider agency;
52.5 	(5) be able to provide covered personal care assistance services according to the 
52.6 	recipient's personal care assistance care plan, respond appropriately to recipient needs, 
52.7 	and report changes in the recipient's condition to the supervising qualified professional 
52.8 	or physician;
52.9 	(6) not be a consumer of personal care assistance services;
52.10 	(7) maintain daily written records including, but not limited to, time sheets under 
52.11 	subdivision 12;
52.12 	(8) effective January 1, 2010, complete standardized training as determined by the 
52.13 	commissioner before completing enrollment. Personal care assistant training must include 
52.14 	successful completion of the following training components: basic first aid, vulnerable 
52.15 	adult, child maltreatment, OSHA universal precautions, basic roles and responsibilities of 
52.16 	personal care assistants including information about assistance with lifting and transfers 
52.17 	for recipients, emergency preparedness, orientation to positive behavioral practices, fraud 
52.18 	issues, and completion of time sheets. Upon completion of the training components, 
52.19 	the personal care assistant must demonstrate the competency to provide assistance to 
52.20 	recipients;
52.21 	(9) complete training and orientation on the needs of the recipient within the first 
52.22 	seven days after the services begin; and
52.23 	(10) be limited to providing and being paid for up to 310 hours per month, except 
52.24 	that this limit shall be 275 hours per month for the period July 1, 2010, through June 30, 
52.25 	2011, of personal care assistance services regardless of the number of recipients being 
52.26 	served or the number of personal care assistance provider agencies enrolled with.
52.27 	(b) A legal guardian may be a personal care assistant if the guardian is not being paid 
52.28 	for the guardian services and meets the criteria for personal care assistants in paragraph (a).
52.29 	(c) Effective January 1, 2010, persons who do not qualify as a personal care assistant 
52.30 	include parents and stepparents of minors, spouses, paid legal guardians, family foster 
52.31 	care providers, except as otherwise allowed in section 256B.0625, subdivision 19a, or 
52.32 	staff of a residential setting.

52.33 	EFFECTIVE DATE. This section is effective July 1, 2010.

52.34 	Sec. 9. Minnesota Statutes 2009 Supplement, section 256B.441, subdivision 55, 
52.35 	is amended to read:
53.1 		Subd. 55.Phase-in of rebased operating payment rates.  (a) For the rate years 
53.2 	beginning October 1, 2008, to October 1, 2015, the operating payment rate calculated 
53.3 	under this section shall be phased in by blending the operating rate with the operating 
53.4 	payment rate determined under section 256B.434. For purposes of this subdivision, the 
53.5 	rate to be used that is determined under section 256B.434 shall not include the portion of 
53.6 	the operating payment rate related to performance-based incentive payments under section 
53.7 	256B.434, subdivision 4, paragraph (d). For the rate year beginning October 1, 2008, the 
53.8 	operating payment rate for each facility shall be 13 percent of the operating payment rate 
53.9 	from this section, and 87 percent of the operating payment rate from section 256B.434. 
53.10 	For the rate year beginning October 1, 2009, the operating payment rate for each facility 
53.11 	shall be 14 percent of the operating payment rate from this section, and 86 percent of the 
53.12 	operating payment rate from section 256B.434. For rate years beginning October 1, 2009; 
53.13 	October 1, 2010; October 1, 2011; and October 1, 2012, no rate adjustments shall be 
53.14 	implemented under this section, but shall be determined under section 256B.434. For the 
53.15 	rate year beginning October 1, 2013, the operating payment rate for each facility shall be 
53.16 	65 percent of the operating payment rate from this section, and 35 percent of the operating 
53.17 	payment rate from section 256B.434. For the rate year beginning October 1, 2014, the 
53.18 	operating payment rate for each facility shall be 82 percent of the operating payment rate 
53.19 	from this section, and 18 percent of the operating payment rate from section 256B.434. For 
53.20 	the rate year beginning October 1, 2015, the operating payment rate for each facility shall 
53.21 	be the operating payment rate determined under this section. The blending of operating 
53.22 	payment rates under this section shall be performed separately for each RUG's class.
53.23 	(b) For the rate year beginning October 1, 2008, the commissioner shall apply limits 
53.24 	to the operating payment rate increases under paragraph (a) by creating a minimum 
53.25 	percentage increase and a maximum percentage increase.
53.26 	(1) Each nursing facility that receives a blended October 1, 2008, operating payment 
53.27 	rate increase under paragraph (a) of less than one percent, when compared to its operating 
53.28 	payment rate on September 30, 2008, computed using rates with RUG's weight of 1.00, 
53.29 	shall receive a rate adjustment of one percent.
53.30 	(2) The commissioner shall determine a maximum percentage increase that will 
53.31 	result in savings equal to the cost of allowing the minimum increase in clause (1). Nursing 
53.32 	facilities with a blended October 1, 2008, operating payment rate increase under paragraph 
53.33 	(a) greater than the maximum percentage increase determined by the commissioner, when 
53.34 	compared to its operating payment rate on September 30, 2008, computed using rates with 
53.35 	a RUG's weight of 1.00, shall receive the maximum percentage increase.
54.1 	(3) Nursing facilities with a blended October 1, 2008, operating payment rate 
54.2 	increase under paragraph (a) greater than one percent and less than the maximum 
54.3 	percentage increase determined by the commissioner, when compared to its operating 
54.4 	payment rate on September 30, 2008, computed using rates with a RUG's weight of 1.00, 
54.5 	shall receive the blended October 1, 2008, operating payment rate increase determined 
54.6 	under paragraph (a).
54.7 	(4) The October 1, 2009, through October 1, 2015, operating payment rate for 
54.8 	facilities receiving the maximum percentage increase determined in clause (2) shall be 
54.9 	the amount determined under paragraph (a) less the difference between the amount 
54.10 	determined under paragraph (a) for October 1, 2008, and the amount allowed under clause 
54.11 	(2). This rate restriction does not apply to rate increases provided in any other section.
54.12 	(c) A portion of the funds received under this subdivision that are in excess of 
54.13 	operating payment rates that a facility would have received under section 256B.434, as 
54.14 	determined in accordance with clauses (1) to (3), shall be subject to the requirements in 
54.15 	section 256B.434, subdivision 19, paragraphs (b) to (h).
54.16 	(1) Determine the amount of additional funding available to a facility, which shall be 
54.17 	equal to total medical assistance resident days from the most recent reporting year times 
54.18 	the difference between the blended rate determined in paragraph (a) for the rate year being 
54.19 	computed and the blended rate for the prior year.
54.20 	(2) Determine the portion of all operating costs, for the most recent reporting year, 
54.21 	that are compensation related. If this value exceeds 75 percent, use 75 percent.
54.22 	(3) Subtract the amount determined in clause (2) from 75 percent.
54.23 	(4) The portion of the fund received under this subdivision that shall be subject to 
54.24 	the requirements in section 256B.434, subdivision 19, paragraphs (b) to (h), shall equal 
54.25 	the amount determined in clause (1) times the amount determined in clause (3).

54.26 	EFFECTIVE DATE. This section is effective retroactively from October 1, 2009.

54.27 	Sec. 10. Minnesota Statutes 2009 Supplement, section 256B.69, subdivision 5a, 
54.28 	is amended to read:
54.29 		Subd. 5a.Managed care contracts. (a) Managed care contracts under this section 
54.30 	and sections 256L.12 and 256D.03, shall be entered into or renewed on a calendar year 
54.31 	basis beginning January 1, 1996. Managed care contracts which were in effect on June 
54.32 	30, 1995, and set to renew on July 1, 1995, shall be renewed for the period July 1, 1995 
54.33 	through December 31, 1995 at the same terms that were in effect on June 30, 1995. The 
54.34 	commissioner may issue separate contracts with requirements specific to services to 
54.35 	medical assistance recipients age 65 and older.
55.1 	(b) A prepaid health plan providing covered health services for eligible persons 
55.2 	pursuant to chapters 256B, 256D, and 256L, is responsible for complying with the terms 
55.3 	of its contract with the commissioner. Requirements applicable to managed care programs 
55.4 	under chapters 256B, 256D, and 256L, established after the effective date of a contract 
55.5 	with the commissioner take effect when the contract is next issued or renewed.
55.6 	(c) Effective for services rendered on or after January 1, 2003, the commissioner 
55.7 	shall withhold five percent of managed care plan payments under this section and 
55.8 	county-based purchasing plan's payment rate under section 256B.692 for the prepaid 
55.9 	medical assistance and general assistance medical care programs pending completion of 
55.10 	performance targets. Each performance target must be quantifiable, objective, measurable, 
55.11 	and reasonably attainable, except in the case of a performance target based on a federal 
55.12 	or state law or rule. Criteria for assessment of each performance target must be outlined 
55.13 	in writing prior to the contract effective date. The managed care plan must demonstrate, 
55.14 	to the commissioner's satisfaction, that the data submitted regarding attainment of 
55.15 	the performance target is accurate. The commissioner shall periodically change the 
55.16 	administrative measures used as performance targets in order to improve plan performance 
55.17 	across a broader range of administrative services. The performance targets must include 
55.18 	measurement of plan efforts to contain spending on health care services and administrative 
55.19 	activities. The commissioner may adopt plan-specific performance targets that take into 
55.20 	account factors affecting only one plan, including characteristics of the plan's enrollee 
55.21 	population. The withheld funds must be returned no sooner than July of the following 
55.22 	year if performance targets in the contract are achieved. The commissioner may exclude 
55.23 	special demonstration projects under subdivision 23.
55.24 	(d) Effective for services rendered on or after January 1, 2009, through December 31, 
55.25 	2009, the commissioner shall withhold three percent of managed care plan payments under 
55.26 	this section and county-based purchasing plan payments under section 256B.692 for the 
55.27 	prepaid medical assistance and general assistance medical care programs. The withheld 
55.28 	funds must be returned no sooner than July 1 and no later than July 31 of the following 
55.29 	year. The commissioner may exclude special demonstration projects under subdivision 23.
55.30 	The return of the withhold under this paragraph is not subject to the requirements of 
55.31 	paragraph (c).
55.32 	(e) Effective for services provided on or after January 1, 2010, the commissioner 
55.33 	shall require that managed care plans use the assessment and authorization processes, 
55.34 	forms, timelines, standards, documentation, and data reporting requirements, protocols, 
55.35 	billing processes, and policies consistent with medical assistance fee-for-service or the 
55.36 	Department of Human Services contract requirements consistent with medical assistance 
56.1 	fee-for-service or the Department of Human Services contract requirements for all 
56.2 	personal care assistance services under section 256B.0659.
56.3 	(f) Effective for services rendered on or after January 1, 2010, through December 
56.4 	31, 2010, the commissioner shall withhold 3.5 4.5 percent of managed care plan payments 
56.5 	under this section and county-based purchasing plan payments under section 256B.692 
56.6 	for the prepaid medical assistance program. The withheld funds must be returned no 
56.7 	sooner than July 1 and no later than July 31 of the following year. The commissioner may 
56.8 	exclude special demonstration projects under subdivision 23.
56.9 	(g) Effective for services rendered on or after January 1, 2011, through December 31, 
56.10 	2011, the commissioner shall withhold four4.5 percent of managed care plan payments 
56.11 	under this section and county-based purchasing plan payments under section 256B.692
56.12 	for the prepaid medical assistance program. The withheld funds must be returned no 
56.13 	sooner than July 1 and no later than July 31 of the following year. The commissioner 
56.14 	may exclude special demonstration projects under subdivision 23. If an extension of the 
56.15 	enhanced federal medical assistance percentage (FMAP) under Public Law 111-5, section 
56.16 	5001, is enacted before June 15, 2010, the withhold percentage stated in this paragraph 
56.17 	shall be 4.0 percent.
56.18 	(h) Effective for services rendered on or after January 1, 2012, through December 
56.19 	31, 2012, the commissioner shall withhold 4.5 percent of managed care plan payments 
56.20 	under this section and county-based purchasing plan payments under section 256B.692 
56.21 	for the prepaid medical assistance program. The withheld funds must be returned no 
56.22 	sooner than July 1 and no later than July 31 of the following year. The commissioner may 
56.23 	exclude special demonstration projects under subdivision 23.
56.24 	(i) Effective for services rendered on or after January 1, 2013, through December 31, 
56.25 	2013, the commissioner shall withhold 4.5 percent of managed care plan payments under 
56.26 	this section and county-based purchasing plan payments under section 256B.692 for the 
56.27 	prepaid medical assistance program. The withheld funds must be returned no sooner than 
56.28 	July 1 and no later than July 31 of the following year. The commissioner may exclude 
56.29 	special demonstration projects under subdivision 23.
56.30 	(j) Effective for services rendered on or after January 1, 2014, the commissioner 
56.31 	shall withhold three percent of managed care plan payments under this section and 
56.32 	county-based purchasing plan payments under section 256B.692 for the prepaid medical 
56.33 	assistance and prepaid general assistance medical care programs. The withheld funds must 
56.34 	be returned no sooner than July 1 and no later than July 31 of the following year. The 
56.35 	commissioner may exclude special demonstration projects under subdivision 23.
57.1 	(k) A managed care plan or a county-based purchasing plan under section 256B.692 
57.2 	may include as admitted assets under section 62D.044 any amount withheld under this 
57.3 	section that is reasonably expected to be returned.
57.4 	(l) Contracts between the commissioner and a prepaid health plan are exempt from 
57.5 	the set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph 
57.6 	(a), and 7.

57.7 	EFFECTIVE DATE. The additional withhold percentage in paragraph (f) is 
57.8 	effective retroactively from January 1, 2010.

57.9 	Sec. 11. Minnesota Statutes 2009 Supplement, section 256B.76, subdivision 1, is 
57.10 	amended to read:
57.11 		Subdivision 1.Physician reimbursement.  (a) Effective for services rendered on 
57.12 	or after October 1, 1992, the commissioner shall make payments for physician services 
57.13 	as follows:
57.14 	(1) payment for level one Centers for Medicare and Medicaid Services' common 
57.15 	procedural coding system codes titled "office and other outpatient services," "preventive 
57.16 	medicine new and established patient," "delivery, antepartum, and postpartum care," 
57.17 	"critical care," cesarean delivery and pharmacologic management provided to psychiatric 
57.18 	patients, and level three codes for enhanced services for prenatal high risk, shall be paid 
57.19 	at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 
57.20 	30, 1992. If the rate on any procedure code within these categories is different than the 
57.21 	rate that would have been paid under the methodology in section 256B.74, subdivision 2, 
57.22 	then the larger rate shall be paid;
57.23 	(2) payments for all other services shall be paid at the lower of (i) submitted charges, 
57.24 	or (ii) 15.4 percent above the rate in effect on June 30, 1992; and
57.25 	(3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th 
57.26 	percentile of 1989, less the percent in aggregate necessary to equal the above increases 
57.27 	except that payment rates for home health agency services shall be the rates in effect 
57.28 	on September 30, 1992.
57.29 	(b) Effective for services rendered on or after January 1, 2000, payment rates for 
57.30 	physician and professional services shall be increased by three percent over the rates 
57.31 	in effect on December 31, 1999, except for home health agency and family planning 
57.32 	agency services. The increases in this paragraph shall be implemented January 1, 2000, 
57.33 	for managed care.
57.34 	(c) Effective for services rendered on or after July 1, 2009, payment rates for 
57.35 	physician and professional services shall be reduced by five percent, except that for the 
58.1 	period July 1, 2009, through June 30, 2010, payments rates shall be reduced by 6.5 percent 
58.2 	for the medical assistance and general assistance medical care programs, over the rates 
58.3 	in effect on June 30, 2009. The additional 1.5 percent reduction in effect for the period 
58.4 	from July 1, 2010, through June 30, 2010, does not apply to physician services billed by a 
58.5 	psychiatrist or an advanced practice registered nurse with a specialty in mental health. 
58.6 	This reduction does not apply to office or other outpatient visits, preventive medicine visits 
58.7 	and family planning visits billed by physicians, advanced practice nurses, or physician 
58.8 	assistants in a family planning agency or in one of the following primary care practices: 
58.9 	general practice, general internal medicine, general pediatrics, general geriatrics, and 
58.10 	family medicine. This reduction does not apply to federally qualified health centers, 
58.11 	rural health centers, and Indian health services. Effective October 1, 2009, payments 
58.12 	made to managed care plans and county-based purchasing plans under sections 256B.69, 
58.13 	256B.692, and 256L.12 shall reflect the payment reduction described in this paragraph.

58.14 	EFFECTIVE DATE. The additional rate reductions in this section are effective 
58.15 	retroactively from July 1, 2009.

58.16 	Sec. 12. Minnesota Statutes 2008, section 256B.76, subdivision 4, is amended to read:
58.17 		Subd. 4.Critical access dental providers.  (a) Effective for dental services rendered 
58.18 	on or after January 1, 2002, the commissioner shall increase reimbursements to dentists 
58.19 	and dental clinics deemed by the commissioner to be critical access dental providers. 
58.20 	For dental services rendered on or after July 1, 2007, the commissioner shall increase 
58.21 	reimbursement by 30 percent above the reimbursement rate that would otherwise be paid to 
58.22 	the critical access dental provider. The commissioner shall pay the health plan companies 
58.23 	in amounts sufficient to reflect increased reimbursements to critical access dental providers 
58.24 	as approved by the commissioner. In determining which dentists and dental clinics shall 
58.25 	be deemed critical access dental providers, the commissioner shall review:
58.26 	(1) the utilization rate in the service area in which the dentist or dental clinic operates 
58.27 	for dental services to patients covered by medical assistance, general assistance medical 
58.28 	care, or MinnesotaCare as their primary source of coverage;
58.29 	(2) the level of services provided by the dentist or dental clinic to patients covered 
58.30 	by medical assistance, general assistance medical care, or MinnesotaCare as their primary 
58.31 	source of coverage; and
58.32 	(3) whether the level of services provided by the dentist or dental clinic is critical to 
58.33 	maintaining adequate levels of patient access within the service area.
59.1 	In the absence of a critical access dental provider in a service area, the commissioner may 
59.2 	designate a dentist or dental clinic as a critical access dental provider if the dentist or 
59.3 	dental clinic is willing to provide care to patients covered by medical assistance, general 
59.4 	assistance medical care, or MinnesotaCare at a level which significantly increases access 
59.5 	to dental care in the service area.
59.6 	(b) Notwithstanding paragraph (a), critical access payments must not be made for 
59.7 	dental services provided from April 1, 2010, through June 30, 2010.

59.8 	EFFECTIVE DATE. This section is effective retroactively from April 1, 2010.

59.9 	Sec. 13. Minnesota Statutes 2009 Supplement, section 256B.766, is amended to read:
59.10 	256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.
59.11 	(a) Effective for services provided on or after July 1, 2009, total payments for basic 
59.12 	care services, shall be reduced by three percent, except that for the period July 1, 2009, 
59.13 	through June 30, 2011, total payments shall be reduced by 4.5 percent for the medical 
59.14 	assistance and general assistance medical care programs, prior to third-party liability 
59.15 	and spenddown calculation. Payments made to managed care plans and county-based 
59.16 	purchasing plans shall be reduced for services provided on or after October 1, 2009, 
59.17 	to reflect this reduction.
59.18 	(b) This section does not apply to physician and professional services, inpatient 
59.19 	hospital services, family planning services, mental health services, dental services, 
59.20 	prescription drugs, medical transportation, federally qualified health centers, rural health 
59.21 	centers, Indian health services, and Medicare cost-sharing.

59.22 	EFFECTIVE DATE. The additional rate reductions in this section are effective 
59.23 	retroactively from July 1, 2009.

59.24 	Sec. 14. REDUCTION OF GROUP RESIDENTIAL HOUSING 
59.25 	SUPPLEMENTAL SERVICE RATE.
 59.26 	Effective retroactively from November 1, 2009, through June 30, 2011, the 
59.27 	commissioner of human services shall decrease the group residential housing (GRH) 
59.28 	supplementary service rate under Minnesota Statutes, section 256I.05, subdivision 1a, by 
59.29 	five percent for services rendered on or after that date, except that reimbursement rates 
59.30 	for a GRH facility reimbursed as a nursing facility shall not be reduced. The reduction 
59.31 	in this paragraph is in addition to the reduction under Laws 2009, chapter 79, article 
59.32 	8, section 79, paragraph (b), clause (11).

60.1 	EFFECTIVE DATE. This section is effective retroactively from November 1, 2009.

60.2 	Sec. 15. ARTICLE EFFECTIVE DATE.
 60.3 	This article is effective the day following final enactment.

60.4 	ARTICLE 14
60.5 	AIDS, CREDITS, REFUNDS

60.6 	Section 1. Minnesota Statutes 2008, section 273.1384, subdivision 6, as added by Laws 
60.7 	2010, chapter 215, article 13, section 2, is amended to read:
60.8 		Subd. 6.Credit reduction. In 2011 and each year thereafter, the market value 
60.9 	credit reimbursement amount for each taxing jurisdiction determined under this section 
60.10 	is reduced by the dollar amount of the reduction in market value credit reimbursements 
60.11 	for that taxing jurisdiction in 2010 due to unallotmentthe reductions announced prior 
60.12 	to February 28, 2010, under section 16A.152 under section 477A.0132. No taxing 
60.13 	jurisdiction's market value credit reimbursements are reduced to less than zero under 
60.14 	this subdivision. The commissioner of revenue shall pay the annual market value credit 
60.15 	reimbursement amounts, after reduction under this subdivision, to the affected taxing 
60.16 	jurisdictions as provided in this section.

60.17 	EFFECTIVE DATE. This section is effective for taxes payable in 2011 and 
60.18 	thereafter.

60.19 	Sec. 2. [477A.0132] 2009 AND 2010 AID REDUCTIONS.
60.20 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
60.21 	have the meanings given them in this subdivision.
60.22 	(b) The "2009 revenue base" for a statutory or home rule charter city is the sum of 
60.23 	the city's certified property tax levy for taxes payable in 2009, plus the amount of local 
60.24 	government aid under section 477A.013, subdivision 9, that the city was certified to 
60.25 	receive in 2009, plus the amount of taconite aids under sections 298.28 and 298.282 that 
60.26 	the city was certified to receive in 2009, including any amounts required to be placed in a 
60.27 	special fund for distribution in a later year.
60.28 	(c) The "2009 revenue base" for a county is the sum of the county's certified property 
60.29 	tax levy for taxes payable in 2009, plus the amount of county program aid under section 
60.30 	477A.0124 that the county was certified to receive in 2009, plus the amount of taconite 
60.31 	aids under sections 298.28 and 298.282 that the county was certified to receive in 2009, 
60.32 	including any amounts required to be placed in a special fund for distribution in a later year.
61.1 	(d) The "2009 revenue base" for a town is the sum of the town's certified property 
61.2 	tax levy for taxes payable in 2009, plus the amount of aid under section 477A.013 that 
61.3 	the town was certified to receive in 2009, plus the amount of taconite aids under sections 
61.4 	298.28 and 298.282 that the town was certified to receive in 2009, including any amounts 
61.5 	required to be placed in a special fund for distribution in a later year. 
61.6 	(e) "Population" means the population of the county, city, or town for 2007 based on 
61.7 	information available to the commissioner of revenue in July 2009.
61.8 	(f) "Adjusted net tax capacity" means the amount of net tax capacity for the county, 
61.9 	city, or town, computed using equalized market values according to section 477A.011, 
61.10 	subdivision 20, for aid payable in 2009.
61.11 	(g) "Adjusted net tax capacity per capita" means the jurisdiction's adjusted net tax 
61.12 	capacity divided by its population.
61.13 		Subd. 2.2009 aid reductions. (a) The commissioner of revenue must compute a 
61.14 	2009 aid reduction amount for each county. 
61.15 	The aid reduction amount is zero for a county with a population of less than 5,000, 
61.16 	and is zero for a county containing the Shooting Star Casino property that was removed 
61.17 	from the tax rolls in 2009.
61.18 	For all other counties, the aid reduction amount is equal to 1.188968672 percent of 
61.19 	the county's 2009 revenue base.
61.20 	The reduction amount is limited to the sum of the amount of county program aid 
61.21 	under section 477A.0124 that the county was certified to receive in 2009, plus the amount 
61.22 	of market value credit reimbursements under section 273.1384 payable to the county in 
61.23 	2009 before the reductions in this section.
61.24 	The reduction amount is applied first to reduce the amount payable to the county 
61.25 	in 2009 as county program aid under section 477A.013 and then, if necessary, to reduce 
61.26 	the amount payable to the county in 2009 as market value credit reimbursements under 
61.27 	section 273.1384.
61.28 	No county's aid or reimbursements are reduced to less than zero under this section.
61.29 	(b) The commissioner of revenue must compute a 2009 aid reduction amount for 
61.30 	each city.
61.31 	The aid reduction amount is zero for any city with a population of less than 1,000 that 
61.32 	has an adjusted net tax capacity per capita amount less than the statewide average adjusted 
61.33 	net tax capacity amount per capita for all cities. The aid reduction amount is also zero for 
61.34 	a city located outside the seven-county metropolitan area, with a 2006 population greater 
61.35 	than 3,500, a pre-1940 housing percentage greater than 29 percent, a commercial-industrial 
62.1 	percentage less than nine percent, and a population decline percentage of zero based on the 
62.2 	data used to certify the 2009 local government aid distribution under section 477A.013.
62.3 	For all other cities, the aid reduction amount is equal to 3.3127634 percent of the 
62.4 	city's 2009 revenue base.
62.5 	The reduction amount is limited to the sum of the amount of local government aid 
62.6 	under section 477A.013, subdivision 9, that the city was certified to receive in 2009, plus 
62.7 	the amount of market value credit reimbursements under section 273.1384 payable to the 
62.8 	city in 2009 before the reductions in this section. 
62.9 	The reduction amount for a city is further limited to $22 per capita.
62.10 	The reduction amount is applied first to reduce the amount payable to the city in 
62.11 	2009 as local government aid under section 477A.013 and then, if necessary, to reduce 
62.12 	the amount payable to the city in 2009 as market value credit reimbursements under 
62.13 	section 273.1384.
62.14 	No city's aid or reimbursements are reduced to less than zero under this section.
62.15 	(c) The commissioner of revenue must compute a 2009 aid reduction amount for 
62.16 	each town.
62.17 	The aid reduction amount is zero for any town with a population of less than 1,000 
62.18 	that has an adjusted net tax capacity per capita amount less than the statewide average 
62.19 	adjusted net tax capacity amount per capita for all towns.
62.20 	For all other towns, the aid reduction amount is equal to 1.735103 percent of the 
62.21 	town's 2009 revenue base.
62.22 	The reduction amount is limited to $5 per capita.
62.23 	The reduction amount is applied to reduce the amount payable to the town in 2009 
62.24 	as market value credit reimbursements under section 273.1384.
62.25 	No town's reimbursements are reduced to less than zero under this section. 
62.26 		Subd. 3.2010 aid reductions. (a) The commissioner of revenue must compute a 
62.27 	2010 aid reduction amount for each county.
62.28 	The aid reduction amount is zero for a county with a population of less than 5,000, 
62.29 	and is zero for a county containing the Shooting Star Casino property that was removed 
62.30 	from the tax rolls in 2009.
62.31 	For all other counties, the aid reduction amount is equal to 2.41396687 percent of 
62.32 	the county's 2009 revenue base.
62.33 	The reduction amount is limited to the sum of the amount of county program aid 
62.34 	under section 477A.0124 that the county was certified to receive in 2009, plus the amount 
62.35 	of market value credit reimbursements under section 273.1384 payable to the county in 
62.36 	2009 before the reductions in this section.
63.1 	The reduction amount is applied first to reduce the amount payable to the county 
63.2 	in 2010 as county program aid under section 477A.013 and then, if necessary, to reduce 
63.3 	the amount payable to the county in 2010 as market value credit reimbursements under 
63.4 	section 273.1384.
63.5 	No county's aid or reimbursements are reduced to less than zero under this section.
63.6 	(b) The commissioner of revenue must compute a 2010 aid reduction amount for 
63.7 	each city. 
63.8 	The aid reduction amount is zero for any city with a population of less than 1,000 
63.9 	that has an adjusted net tax capacity per capita amount less than the statewide average 
63.10 	adjusted net tax capacity amount per capita for all cities. 
63.11 	For all other cities, the aid reduction amount is equal to 7.643803025 percent of the 
63.12 	city's 2009 revenue base.
63.13 	The reduction amount is limited to the sum of the amount of local government aid 
63.14 	under section 477A.013, subdivision 9, that the city was certified to receive in 2010, plus 
63.15 	the amount of market value credit reimbursements under section 273.1384 payable to the 
63.16 	city in 2010 before the reductions in this section. 
63.17 	The reduction amount for a city is further limited to $55 per capita.
63.18 	The reduction amount is applied first to reduce the amount payable to the city in 
63.19 	2010 as local government aid under section 477A.013 and then, if necessary, to reduce 
63.20 	the amount payable to the city in 2010 as market value credit reimbursements under 
63.21 	section 273.1384.
63.22 	No city's aid or reimbursements are reduced to less than zero under this section.
63.23 	(c) The commissioner of revenue must compute a 2010 aid reduction amount for 
63.24 	each town.
63.25 	The aid reduction amount is zero for any town with a population of less than 1,000 
63.26 	that has an adjusted net tax capacity per capita amount less than the statewide average 
63.27 	adjusted net tax capacity amount per capita for all towns.
63.28 	For all other towns, the aid reduction amount is equal to 3.660798 percent of the 
63.29 	town's 2009 revenue base.
63.30 	The reduction amount is limited to $10 per capita.
63.31 	The reduction amount is applied to reduce the amount payable to the town in 2010 
63.32 	as market value credit reimbursements under section 273.1384.
63.33 	No town's reimbursements are reduced to less than zero under this section.

63.34 	EFFECTIVE DATE. This section is effective the day following final enactment 
63.35 	and is retroactive for aids and credit reimbursements payable in 2009.

64.1 	Sec. 3. Laws 2010, chapter 215, article 13, section 6, is amended to read:
64.2 	Sec. 6. 477A.0133 ADDITIONAL 2010 AID AND CREDIT REDUCTIONS.
64.3 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
64.4 	have the meanings given them in this subdivision.
64.5 	(b) The "2010 revenue base" for a county is the sum of the county's certified property 
64.6 	tax levy for taxes payable in 2010, plus the amount of county program aid under section 
64.7 	477A.0124 that the county was certified to receive in 2010, plus the amount of taconite 
64.8 	aids under sections 298.28 and 298.282 that the county was certified to receive in 2010 
64.9 	including any amounts required to be placed in a special fund for distribution in a later year.
64.10 	(c) The "2010 revenue base" for a statutory or home rule charter city is the sum of 
64.11 	the city's certified property tax levy for taxes payable in 2010, plus the amount of local 
64.12 	government aid under section 477A.013, subdivision 9, that the city was certified to 
64.13 	receive in 2010, plus the amount of taconite aids under sections 298.28 and 298.282 that 
64.14 	the city was certified to receive in 2010 including any amounts required to be placed in a 
64.15 	special fund for distribution in a later year.
64.16 		Subd. 2.2010 reductions; counties and cities. The commissioner of revenue 
64.17 	must compute additional 2010 aid and credit reimbursement reduction amounts for each 
64.18 	county and city under this section, after implementing any reduction of county program 
64.19 	aid under section 477A.0124, local government aid under section 477A.013, or market 
64.20 	value credit reimbursements under section 273.1384, to reflect the reduction of allotments 
64.21 	under section 16A.152 reductions under section 477A.0132.
64.22 	The additional reduction amounts under this section are limited to the sum of the 
64.23 	amount of county program aid under section 477A.0124, local government aid under 
64.24 	section 477A.013, and market value credit reimbursements under section 273.1384
64.25 	payable to the county or city in 2010 before the reductions in this section, but after the 
64.26 	reductions for unallotments under section 477A.0132.
64.27 	The reduction amount under this section is applied first to reduce the amount 
64.28 	payable to the county or city in 2010 as market value credit reimbursements under section 
64.29 	273.1384, and then if necessary, to reduce the amount payable as either county program 
64.30 	aid under section 477A.0124 in the case of a county, or local government aid under section 
64.31 	477A.013 in the case of a city.
64.32 	No aid or reimbursement amount is reduced to less than zero under this section.
64.33 	The additional 2010 aid reduction amount for a county is equal to 1.82767 percent 
64.34 	of the county's 2010 revenue base. The additional 2010 aid reduction amount for a city 
64.35 	is equal to the lesser of (1) 3.4287 percent of the city's 2010 revenue base or (2) $28 
64.36 	multiplied by the city's 2008 population.

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

65.2 	Sec. 4. REFUNDS AND CREDITS.
 65.3 		Subdivision 1.Political contribution credit. Notwithstanding the provisions of 
65.4 	Minnesota Statutes, section 290.06, subdivision 23, or any other law to the contrary, the 
65.5 	political contribution refund does not apply to contributions made after June 30, 2009, 
65.6 	and before July 1, 2011.
65.7 		Subd. 2.Property tax refund. For property tax refunds based on rent paid during 
65.8 	calendar year 2009 only, but also applying to refunds based on property taxes payable in 
65.9 	2010 that include gross rent paid in 2009, the following rules apply:
65.10 	(1) "rent constituting property taxes" must be calculated by substituting "15 percent" 
65.11 	for "19 percent" under Minnesota Statutes, section 290A.03, subdivision 11; and
65.12 	(2) "property taxes payable" must be calculated under Minnesota Statutes, section 
65.13 	290A.03, subdivision 13, by substituting "15 percent" for "19 percent" in determining the 
65.14 	portion of gross rent paid that is included in property taxes payable.
65.15 		Subd. 3.Sustainable forest incentive program. The maximum sustainable forest 
65.16 	incentive program payments under Minnesota Statutes, section 290C.07, per each Social 
65.17 	Security number or state or federal business tax identification number must not exceed 
65.18 	$100,000. The provisions of this subdivision apply only to payments made during fiscal 
65.19 	year 2011.

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

65.21 	Sec. 5. LEVY VALIDATION.
 65.22 	Any special levy under Minnesota Statutes, section 275.70, subdivision 5, clause 
65.23 	(22), approved by the commissioner of revenue for taxes payable in 2010, is validated 
65.24 	notwithstanding a later judicial decision that may affect the validity of unallotments that 
65.25 	were announced in 2009. A local government may not levy under Minnesota Statutes, 
65.26 	section 275.70, subdivision 5, clause (22), for taxes payable in 2011 for any retroactive 
65.27 	reduction in aid and credit reimbursements for aids and credits payable in 2008 or 2009.

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

65.29 	ARTICLE 15
65.30 	SPECIAL REVENUE FUND

65.31 	Section 1. Minnesota Statutes 2008, section 3.9741, subdivision 2, is amended to read:
66.1 		Subd. 2.Postsecondary Education Board. The legislative auditor may enter into 
66.2 	an interagency agreement with the Board of Trustees of the Minnesota State Colleges and 
66.3 	Universities to conduct financial audits, in addition to audits conducted under section 
66.4 	3.972, subdivision 2. All payments received for audits requested by the board shall be 
66.5 	added to the appropriation for deposited in the special revenue fund and appropriated to
66.6 	the legislative auditor to pay audit expenses. 

66.7 	Sec. 2. Minnesota Statutes 2008, section 8.15, subdivision 3, is amended to read:
66.8 		Subd. 3.Agreements. (a) To facilitate the delivery of legal services, the attorney 
66.9 	general may:
66.10 	(1) enter into agreements with executive branch agencies, political subdivisions, or 
66.11 	quasi-state agencies to provide legal services for the benefit of the citizens of Minnesota; 
66.12 	and
66.13 	(2) in addition to funds otherwise appropriated by the legislature, accept and spend 
66.14 	funds received under any agreement authorized in clause (1) for the purpose set forth in 
66.15 	clause (1), subject to a report of receipts to the chairs of the senate Finance Committee and 
66.16 	the house of representatives Ways and Means Committee by October 15 each year.
66.17 	(b) When entering into an agreement for legal services, the attorney general must 
66.18 	notify the committees responsible for funding the Office of the Attorney General. When 
66.19 	the attorney general enters into an agreement with a state agency, the attorney general 
66.20 	must also notify the committees responsible for funding that agency.
66.21 	Funds received under this subdivision must be deposited in the generalan account in 
66.22 	the special revenue fund and are appropriated to the attorney general for the purposes set 
66.23 	forth in this subdivision.

66.24 	Sec. 3. Minnesota Statutes 2008, section 13.03, subdivision 10, is amended to read:
66.25 		Subd. 10.Costs for providing copies of data. Money may be collected by a 
66.26 	responsible authority in a state agency for the actual cost to the agency of providing 
66.27 	copies or electronic transmittal of government data is appropriated to the agency and 
66.28 	added to the appropriations from which the costs were paid. When money collected for 
66.29 	purposes of this section is of a magnitude sufficient to warrant a separate account in the 
66.30 	state treasury, that money must be deposited in a fund other than the general fund and is 
66.31 	appropriated to the agency.

66.32 	Sec. 4. Minnesota Statutes 2008, section 16C.23, subdivision 6, is amended to read:
67.1 		Subd. 6.State surplus property. The commissioner may do any of the following to 
67.2 	dispose of state surplus property:
67.3 	(1) transfer it to or between state agencies;
67.4 	(2) transfer it to a governmental unit or nonprofit organization in Minnesota; or
67.5 	(3) sell it and charge a fee to cover expenses incurred by the commissioner in the 
67.6 	disposal of the surplus property.
67.7 	The proceeds of the sale less the fee must be deposited in an account in a fund other 
67.8 	than the general fund and are appropriated to the agency for whose account the sale was 
67.9 	made, to be used and expended by that agency to purchase similar state property.

67.10 	Sec. 5. Minnesota Statutes 2008, section 103B.101, subdivision 9, is amended to read:
67.11 		Subd. 9.Powers and duties. In addition to the powers and duties prescribed 
67.12 	elsewhere, the board shall:
67.13 	(1) coordinate the water and soil resources planning activities of counties, soil and 
67.14 	water conservation districts, watershed districts, watershed management organizations, 
67.15 	and any other local units of government through its various authorities for approval of 
67.16 	local plans, administration of state grants, and by other means as may be appropriate;
67.17 	(2) facilitate communication and coordination among state agencies in cooperation 
67.18 	with the Environmental Quality Board, and between state and local units of government, 
67.19 	in order to make the expertise and resources of state agencies involved in water and soil 
67.20 	resources management available to the local units of government to the greatest extent 
67.21 	possible;
67.22 	(3) coordinate state and local interests with respect to the study in southwestern 
67.23 	Minnesota under United States Code, title 16, section 1009;
67.24 	(4) develop information and education programs designed to increase awareness 
67.25 	of local water and soil resources problems and awareness of opportunities for local 
67.26 	government involvement in preventing or solving them;
67.27 	(5) provide a forum for the discussion of local issues and opportunities relating 
67.28 	to water and soil resources management;
67.29 	(6) adopt an annual budget and work program that integrate the various functions 
67.30 	and responsibilities assigned to it by law; and
67.31 	(7) report to the governor and the legislature by October 15 of each even-numbered 
67.32 	year with an assessment of board programs and recommendations for any program 
67.33 	changes and board membership changes necessary to improve state and local efforts 
67.34 	in water and soil resources management.
68.1 	The board may accept grants, gifts, donations, or contributions in money, services, 
68.2 	materials, or otherwise from the United States, a state agency, or other source to achieve 
68.3 	an authorized purpose. The board may enter into a contract or agreement necessary or 
68.4 	appropriate to accomplish the transfer. The board may receive and expend money to 
68.5 	acquire conservation easements, as defined in chapter 84C, on behalf of the state and 
68.6 	federal government consistent with the Camp Ripley's Army Compatible Use Buffer 
68.7 	Project.
68.8 	Any money received is hereby deposited in an account in a fund other than the 
68.9 	general fund and appropriated and dedicated for the purpose for which it is granted.

68.10 	Sec. 6. Minnesota Statutes 2008, section 103I.681, subdivision 11, is amended to read:
68.11 		Subd. 11.Permit fee schedule. (a) The commissioner of natural resources shall 
68.12 	adopt a permit fee schedule under chapter 14. The schedule may provide minimum fees 
68.13 	for various classes of permits, and additional fees, which may be imposed subsequent 
68.14 	to the application, based on the cost of receiving, processing, analyzing, and issuing 
68.15 	the permit, and the actual inspecting and monitoring of the activities authorized by the 
68.16 	permit, including costs of consulting services.
68.17 	(b) A fee may not be imposed on a state or federal governmental agency applying 
68.18 	for a permit.
68.19 	(c) The fee schedule may provide for the refund of a fee, in whole or in part, under 
68.20 	circumstances prescribed by the commissioner of natural resources. Fees received must 
68.21 	be deposited in the state treasury and credited to the general an account in the natural 
68.22 	resources fund. Permit fees received are appropriated annually from the general natural 
68.23 	resources fund to the commissioner of natural resources for the costs of inspecting and 
68.24 	monitoring the activities authorized by the permit, including costs of consulting services.

68.25 	Sec. 7. Minnesota Statutes 2008, section 116J.551, subdivision 1, is amended to read:
68.26 		Subdivision 1.Grant account. A contaminated site cleanup and development grant 
68.27 	account is created in the generalspecial revenue fund. Money in the account may be used, 
68.28 	as appropriated by law, to make grants as provided in section 116J.554 and to pay for the 
68.29 	commissioner's costs in reviewing applications and making grants. Notwithstanding 
68.30 	section 16A.28, money appropriated to the account for this program from any source 
68.31 	is available until spent.

68.32 	Sec. 8. Minnesota Statutes 2008, section 190.32, is amended to read:
68.33 	190.32 FEDERAL REIMBURSEMENT RECEIPTS.
69.1 	The Department of Military Affairs may deposit federal reimbursement receipts into 
69.2 	the general fundan account in the special revenue fund, maintenance of military training 
69.3 	facilities. These receipts are for services, supplies, and materials initially purchased by the 
69.4 	Camp Ripley maintenance account.

69.5 	Sec. 9. Minnesota Statutes 2008, section 257.69, subdivision 2, is amended to read:
69.6 		Subd. 2.Guardian; legal fees. (a) The court may order expert witness and guardian 
69.7 	ad litem fees and other costs of the trial and pretrial proceedings, including appropriate 
69.8 	tests, to be paid by the parties in proportions and at times determined by the court. The 
69.9 	court shall require a party to pay part of the fees of court-appointed counsel according 
69.10 	to the party's ability to pay, but if counsel has been appointed the appropriate agency 
69.11 	shall pay the party's proportion of all other fees and costs. The agency responsible for 
69.12 	child support enforcement shall pay the fees and costs for blood or genetic tests in a 
69.13 	proceeding in which it is a party, is the real party in interest, or is acting on behalf of the 
69.14 	child. However, at the close of a proceeding in which paternity has been established under 
69.15 	sections 257.51 to 257.74, the court shall order the adjudicated father to reimburse the 
69.16 	public agency, if the court finds he has sufficient resources to pay the costs of the blood or 
69.17 	genetic tests. When a party bringing an action is represented by the county attorney, no 
69.18 	filing fee shall be paid to the court administrator. 
69.19 	(b) In each fiscal year, the commissioner of management and budget shall deposit 
69.20 	guardian ad litem reimbursements in the general special revenue fund and credit them to a 
69.21 	separate account with the trial courts. The balance of this account is appropriated to the 
69.22 	trial courts and does not cancel but is available until expended. Expenditures by the state 
69.23 	court administrator's office from this account must be based on the amount of the guardian 
69.24 	ad litem reimbursements received by the state from the courts in each judicial district.

69.25 	Sec. 10. Minnesota Statutes 2008, section 260C.331, subdivision 6, is amended to read:
69.26 		Subd. 6.Guardian ad litem fees. (a) In proceedings in which the court appoints a 
69.27 	guardian ad litem pursuant to section 260C.163, subdivision 5, clause (a), the court may 
69.28 	inquire into the ability of the parents to pay for the guardian ad litem's services and, 
69.29 	after giving the parents a reasonable opportunity to be heard, may order the parents to 
69.30 	pay guardian fees. 
69.31 	(b) In each fiscal year, the commissioner of management and budget shall deposit 
69.32 	guardian ad litem reimbursements in the generalspecial revenue fund and credit them to a 
69.33 	separate account with the trial courts. The balance of this account is appropriated to the 
69.34 	trial courts and does not cancel but is available until expended. Expenditures by the state 
70.1 	court administrator's office from this account must be based on the amount of the guardian 
70.2 	ad litem reimbursements received by the state from the courts in each judicial district.

70.3 	Sec. 11. Minnesota Statutes 2009 Supplement, section 270.97, is amended to read:
70.4 	270.97 DEPOSIT OF REVENUES.
70.5 	The commissioner shall deposit all revenues derived from the tax, interest, and 
70.6 	penalties received from the county in the contaminated site cleanup and development 
70.7 	account in the generalspecial revenue fund and is annually appropriated to the 
70.8 	commissioner of the Department of Employment and Economic Development, for the 
70.9 	purposes of section 116J.551.

70.10 	Sec. 12. Minnesota Statutes 2008, section 299C.48, is amended to read:
70.11 	299C.48 CONNECTION BY AUTHORIZED AGENCY; FEE, 
70.12 	APPROPRIATION.
70.13 	(a) An agency authorized under section 299C.46, subdivision 3, may connect with 
70.14 	and participate in the criminal justice data communications network upon approval 
70.15 	of the commissioner of public safety; provided, that the agency shall first agree to pay 
70.16 	installation charges as may be necessary for connection and monthly operational charges 
70.17 	as may be established by the commissioner of public safety. Before participation by a 
70.18 	criminal justice agency may be approved, the agency must have executed an agreement 
70.19 	with the commissioner providing for security of network facilities and restrictions on 
70.20 	access to data supplied to and received through the network.  
70.21 	(b) In addition to any fee otherwise authorized, the commissioner of public safety 
70.22 	shall impose a fee for providing secure dial-up or Internet access for criminal justice 
70.23 	agencies and noncriminal justice agencies. The following monthly fees apply:
70.24 	(1) criminal justice agency accessing via Internet, $15;
70.25 	(2) criminal justice agency accessing via dial-up, $35;
70.26 	(3) noncriminal justice agency accessing via Internet, $35; and
70.27 	(4) noncriminal justice agency accessing via dial-up, $35.
70.28 	(c) The installation and monthly operational charges collected by the commissioner 
70.29 	of public safety under paragraphs (a) and (b) must be deposited in an account in the special 
70.30 	revenue fund and are annually appropriated to the commissioner to administer sections 
70.31 	299C.46 to 299C.50. 

71.1 	Sec. 13. Minnesota Statutes 2008, section 299E.02, is amended to read:
71.2 	299E.02 CONTRACT SERVICES; APPROPRIATION.
71.3 	Fees charged for contracted security services provided by the Capitol Complex 
71.4 	Security Division of the Department of Public Safety must be deposited in an account in 
71.5 	the special revenue fund and are annually appropriated to the commissioner of public 
71.6 	safety to administer and provide these services.

71.7 	Sec. 14. Minnesota Statutes 2008, section 446A.086, subdivision 2, as amended by 
71.8 	Laws 2010, chapter 290, section 14, is amended to read:
71.9 		Subd. 2.Application. (a) This section provides a state guarantee of the payment of 
71.10 	principal and interest on debt obligations if:
71.11 	(1) the obligations are issued for new projects and are not issued for the purposes of 
71.12 	refunding previous obligations;
71.13 	(2) application to the Public Facilities Authority is made before issuance; and
71.14 	(3) the obligations are covered by an agreement meeting the requirements of 
71.15 	subdivision 3.
71.16 	(b) Applications to be covered by the provisions of this section must be made in a 
71.17 	form and contain the information prescribed by the authority. Applications are subject to 
71.18 	either a fee of $500 for each bond issue requested by a county or governmental unit or the 
71.19 	applicable fees under section 446A.087.
71.20 	(c) Application fees paid under this section must be deposited in a separate credit 
71.21 	enhancement bond guarantee account in the general special revenue fund. Money in the 
71.22 	credit enhancement bond guarantee account is appropriated to the authority for purposes 
71.23 	of administering this section.
71.24 	(d) Neither the authority nor the commissioner is required to promulgate 
71.25 	administrative rules under this section and the procedures and requirements established by 
71.26 	the authority or commissioner under this section are not subject to chapter 14.

71.27 	Sec. 15. Minnesota Statutes 2008, section 469.177, subdivision 11, is amended to read:
71.28 		Subd. 11.Deduction for enforcement costs; appropriation. (a) The county 
71.29 	treasurer shall deduct an amount equal to 0.25 percent of any increment distributed to an 
71.30 	authority or municipality. The county treasurer shall pay the amount deducted to the 
71.31 	commissioner of management and budget for deposit in the state generalan account in 
71.32 	the special revenue fund.
71.33 	(b) The amounts deducted and paid under paragraph (a) are appropriated to the state 
71.34 	auditor for the cost of (1) the financial reporting of tax increment financing information 
72.1 	and (2) the cost of examining and auditing of authorities' use of tax increment financing 
72.2 	as provided under section   469.1771, subdivision 1. Notwithstanding section  16A.28 or 
72.3 	any other law to the contrary, this appropriation does not cancel and remains available 
72.4 	until spent. 
72.5 	(c) For taxes payable in 2002 and thereafter, the commissioner of revenue shall 
72.6 	increase the percent in paragraph (a) to a percent equal to the product of the percent in 
72.7 	paragraph (a) and the amount that the statewide tax increment levy for taxes payable in 
72.8 	2002 would have been without the class rate changes in this act and the elimination of 
72.9 	the general education levy in this act divided by the statewide tax increment levy for 
72.10 	taxes payable in 2002.

72.11 	Sec. 16. Minnesota Statutes 2008, section 518.165, subdivision 3, is amended to read:
72.12 		Subd. 3.Fees. (a) A guardian ad litem appointed under either subdivision 1 or 2 
72.13 	may be appointed either as a volunteer or on a fee basis. If a guardian ad litem is appointed 
72.14 	on a fee basis, the court shall enter an order for costs, fees, and disbursements in favor 
72.15 	of the child's guardian ad litem. The order may be made against either or both parties, 
72.16 	except that any part of the costs, fees, or disbursements which the court finds the parties 
72.17 	are incapable of paying shall be borne by the state courts. The costs of court-appointed 
72.18 	counsel to the guardian ad litem shall be paid by the county in which the proceeding is 
72.19 	being held if a party is incapable of paying for them. Until the recommendations of the 
72.20 	task force created in Laws 1999, chapter 216, article 7, section 42, are implemented, the 
72.21 	costs of court-appointed counsel to a guardian ad litem in the Eighth Judicial District shall 
72.22 	be paid by the state courts if a party is incapable of paying for them. In no event may the 
72.23 	court order that costs, fees, or disbursements be paid by a party receiving public assistance 
72.24 	or legal assistance or by a party whose annual income falls below the poverty line as 
72.25 	established under United States Code, title 42, section 9902(2).
72.26 	(b) In each fiscal year, the commissioner of management and budget shall deposit 
72.27 	guardian ad litem reimbursements in the generalspecial revenue fund and credit them to a 
72.28 	separate account with the trial courts. The balance of this account is appropriated to the 
72.29 	trial courts and does not cancel but is available until expended. Expenditures by the state 
72.30 	court administrator's office from this account must be based on the amount of the guardian 
72.31 	ad litem reimbursements received by the state from the courts in each judicial district.

72.32 	Sec. 17. Minnesota Statutes 2008, section 609.3241, is amended to read:
72.33 	609.3241 PENALTY ASSESSMENT AUTHORIZED.
73.1 	When a court sentences an adult convicted of violating section 609.322 or 609.324, 
73.2 	while acting other than as a prostitute, the court shall impose an assessment of not less 
73.3 	than $250 and not more than $500 for a violation of section 609.324, subdivision 2, or a 
73.4 	misdemeanor violation of section 609.324, subdivision 3; otherwise the court shall impose 
73.5 	an assessment of not less than $500 and not more than $1,000. The mandatory minimum 
73.6 	portion of the assessment is to be used for the purposes described in section 626.558, 
73.7 	subdivision 2a, and is in addition to the surcharge required by section 357.021, subdivision 
73.8 	6. Any portion of the assessment imposed in excess of the mandatory minimum amount 
73.9 	shall be forwarded to the general deposited in an account in the special revenue fund and 
73.10 	is appropriated annually to the commissioner of public safety. The commissioner, with the 
73.11 	assistance of the General Crime Victims Advisory Council, shall use money received under 
73.12 	this section for grants to agencies that provide assistance to individuals who have stopped 
73.13 	or wish to stop engaging in prostitution. Grant money may be used to provide these 
73.14 	individuals with medical care, child care, temporary housing, and educational expenses. 

73.15 	Sec. 18. Minnesota Statutes 2008, section 611.20, subdivision 3, is amended to read:
73.16 		Subd. 3.Reimbursement. In each fiscal year, the commissioner of management 
73.17 	and budget shall deposit the payments in the generalspecial revenue fund and credit them 
73.18 	to a separate account with the Board of Public Defense. The amount credited to this 
73.19 	account is appropriated to the Board of Public Defense.
73.20 	The balance of this account does not cancel but is available until expended. 
73.21 	Expenditures by the board from this account for each judicial district public defense office 
73.22 	must be based on the amount of the payments received by the state from the courts in 
73.23 	each judicial district. A district public defender's office that receives money under this 
73.24 	subdivision shall use the money to supplement office overhead payments to part-time 
73.25 	attorneys providing public defense services in the district. By January 15 of each year, 
73.26 	the Board of Public Defense shall report to the chairs and ranking minority members of 
73.27 	the senate and house of representatives divisions having jurisdiction over criminal justice 
73.28 	funding on the amount appropriated under this subdivision, the number of cases handled 
73.29 	by each district public defender's office, the number of cases in which reimbursements 
73.30 	were ordered, the average amount of reimbursement ordered, and the average amount of 
73.31 	money received by part-time attorneys under this subdivision.

73.32 	Sec. 19. Laws 1994, chapter 531, section 1, is amended to read:
73.33 	Section 1. SALE OF WILDLIFE LANDS.
 74.1 	Notwithstanding Minnesota Statutes, sections 84.027, subdivision 10; 92.45; 94.09
74.2 	to 94.165; 97A.135; 103F.535, or any other law, the commissioner of administration may 
74.3 	sell lands located in the Gordy Yaeger wildlife management area in Olmsted county. The 
74.4 	consideration for the lands described in sections 2 and 3 shall be $950 per acre. The 
74.5 	conveyances shall be by guitclaimquitclaim deed in a form approved by the attorney 
74.6 	general and shall reserve to the state all minerals and mineral rights. The proceeds received 
74.7 	from the sales are to be deposited in an account in the generalnatural resources fund and 
74.8 	are appropriated to the commissioner of natural resources for acquisition of replacement 
74.9 	wildlife management area lands. These sales are pursuant to the recommendation of the 
74.10 	Gordy Yaeger wildlife management area advisory committee.

74.11 	ARTICLE 16
74.12 	HEALTH CARE

74.13 	Section 1. Minnesota Statutes 2008, section 256.01, is amended by adding a 
74.14 	subdivision to read:
74.15 		Subd. 30.Review and evaluation of ongoing studies. The commissioner 
74.16 	shall review all ongoing studies, reports, and program evaluations completed by the 
74.17 	Department of Human Services for state fiscal years 2006 through 2010. For each item, 
74.18 	the commissioner shall report the legislature's appropriation for that work, if any, and the 
74.19 	actual reported cost of the completed work by the Department of Human Services. The 
74.20 	commissioner shall make recommendations to the legislature about which studies, reports, 
74.21 	and program evaluations required by law on an ongoing basis are duplicative, unnecessary, 
74.22 	or obsolete. The commissioner shall repeat this review every five fiscal years.

74.23 	Sec. 2. Minnesota Statutes 2008, section 256.9657, subdivision 2, is amended to read:
74.24 		Subd. 2.Hospital surcharge. (a) Effective October 1, 1992, each Minnesota 
74.25 	hospital except facilities of the federal Indian Health Service and regional treatment 
74.26 	centers shall pay to the medical assistance account a surcharge equal to 1.4 percent of net 
74.27 	patient revenues excluding net Medicare revenues reported by that provider to the health 
74.28 	care cost information system according to the schedule in subdivision 4.
74.29 	(b) Effective July 1, 1994, the surcharge under paragraph (a) is increased to 1.56
74.30 	percent. 
74.31 	(c) Effective July 1, 2010, the surcharge under paragraph (b) is increased to 2.63 
74.32 	percent. 
74.33 	(d) Effective October 1, 2011, the surcharge under paragraph (c) is reduced to 
74.34 	2.30 percent.
75.1 	(e) Notwithstanding the Medicare cost finding and allowable cost principles, the 
75.2 	hospital surcharge is not an allowable cost for purposes of rate setting under sections 
75.3 	256.9685 to 256.9695. 

75.4 	EFFECTIVE DATE. This section is effective July 1, 2010.

75.5 	Sec. 3. Minnesota Statutes 2008, section 256.9657, subdivision 3, is amended to read:
75.6 		Subd. 3.Surcharge on HMOs and community integrated service networks. (a) 
75.7 	Effective October 1, 1992, each health maintenance organization with a certificate of 
75.8 	authority issued by the commissioner of health under chapter 62D and each community 
75.9 	integrated service network licensed by the commissioner under chapter 62N shall pay to 
75.10 	the commissioner of human services a surcharge equal to six-tenths of one percent of the 
75.11 	total premium revenues of the health maintenance organization or community integrated 
75.12 	service network as reported to the commissioner of health according to the schedule in 
75.13 	subdivision 4.
75.14 	(b) Effective October 1, 2010, in addition to the surcharge under paragraph (a), each 
75.15 	health maintenance organization shall pay to the commissioner a surcharge equal to 0.52 
75.16 	percent of total premium revenues and each county-based purchasing plan authorized 
75.17 	under section 256B.692 shall pay to the commissioner a surcharge equal to 1.12 percent 
75.18 	of the total premium revenues of the plan, as reported to the commissioner of health, 
75.19 	according to the payment schedule in subdivision 4. Notwithstanding section 256.9656, 
75.20 	money collected under this paragraph shall be deposited in the health care access fund 
75.21 	established in section 16A.724.
75.22 	(c) For purposes of this subdivision, total premium revenue means:
75.23 	(1) premium revenue recognized on a prepaid basis from individuals and groups 
75.24 	for provision of a specified range of health services over a defined period of time which 
75.25 	is normally one month, excluding premiums paid to a health maintenance organization 
75.26 	or community integrated service network from the Federal Employees Health Benefit 
75.27 	Program;
75.28 	(2) premiums from Medicare wrap-around subscribers for health benefits which 
75.29 	supplement Medicare coverage;
75.30 	(3) Medicare revenue, as a result of an arrangement between a health maintenance 
75.31 	organization or a community integrated service network and the Centers for Medicare 
75.32 	and Medicaid Services of the federal Department of Health and Human Services, for 
75.33 	services to a Medicare beneficiary, excluding Medicare revenue that states are prohibited 
75.34 	from taxing under sections 1854, 1860D-12, and 1876 of title XVIII of the federal Social 
76.1 	Security Act, codified as United States Code, title 42, sections 1395mm, 1395w-112, and 
76.2 	1395w-24, respectively, as they may be amended from time to time; and
76.3 	(4) medical assistance revenue, as a result of an arrangement between a health 
76.4 	maintenance organization or community integrated service network and a Medicaid state 
76.5 	agency, for services to a medical assistance beneficiary.
76.6 	If advance payments are made under clause (1) or (2) to the health maintenance 
76.7 	organization or community integrated service network for more than one reporting period, 
76.8 	the portion of the payment that has not yet been earned must be treated as a liability.
76.9 	(c) (d) When a health maintenance organization or community integrated service 
76.10 	network merges or consolidates with or is acquired by another health maintenance 
76.11 	organization or community integrated service network, the surviving corporation or the 
76.12 	new corporation shall be responsible for the annual surcharge originally imposed on 
76.13 	each of the entities or corporations subject to the merger, consolidation, or acquisition, 
76.14 	regardless of whether one of the entities or corporations does not retain a certificate of 
76.15 	authority under chapter 62D or a license under chapter 62N.
76.16 	(d) (e) Effective July 1 of each year, the surviving corporation's or the new 
76.17 	corporation's surcharge shall be based on the revenues earned in the second previous 
76.18 	calendar year by all of the entities or corporations subject to the merger, consolidation, 
76.19 	or acquisition regardless of whether one of the entities or corporations does not retain a 
76.20 	certificate of authority under chapter 62D or a license under chapter 62N until the total 
76.21 	premium revenues of the surviving corporation include the total premium revenues of all 
76.22 	the merged entities as reported to the commissioner of health.
76.23 	(e) (f) When a health maintenance organization or community integrated service 
76.24 	network, which is subject to liability for the surcharge under this chapter, transfers, 
76.25 	assigns, sells, leases, or disposes of all or substantially all of its property or assets, liability 
76.26 	for the surcharge imposed by this chapter is imposed on the transferee, assignee, or buyer 
76.27 	of the health maintenance organization or community integrated service network.
76.28 	(f) (g) In the event a health maintenance organization or community integrated 
76.29 	service network converts its licensure to a different type of entity subject to liability 
76.30 	for the surcharge under this chapter, but survives in the same or substantially similar 
76.31 	form, the surviving entity remains liable for the surcharge regardless of whether one of 
76.32 	the entities or corporations does not retain a certificate of authority under chapter 62D 
76.33 	or a license under chapter 62N.
76.34 	(g) (h) The surcharge assessed to a health maintenance organization or community 
76.35 	integrated service network ends when the entity ceases providing services for premiums 
76.36 	and the cessation is not connected with a merger, consolidation, acquisition, or conversion.

77.1 	EFFECTIVE DATE. This section is effective July 1, 2010.

77.2 	Sec. 4. Minnesota Statutes 2009 Supplement, section 256.969, subdivision 2b, is 
77.3 	amended to read:
77.4 		Subd. 2b.Operating payment rates. In determining operating payment rates for 
77.5 	admissions occurring on or after the rate year beginning January 1, 1991, and every two 
77.6 	years after, or more frequently as determined by the commissioner, the commissioner shall 
77.7 	obtain operating data from an updated base year and establish operating payment rates 
77.8 	per admission for each hospital based on the cost-finding methods and allowable costs of 
77.9 	the Medicare program in effect during the base year. Rates under the general assistance 
77.10 	medical care, medical assistance, and MinnesotaCare programs shall not be rebased to 
77.11 	more current data on January 1, 1997, January 1, 2005, for the first 24 months of the 
77.12 	rebased period beginning January 1, 2009. For the first three 24  months of the rebased 
77.13 	period beginning January 1, 2011, rates shall  not be rebased at 74.25 percent of the full 
77.14 	value of the rebasing percentage change. From April 1, 2011, to March 31, 2012, rates 
77.15 	shall be rebased at 39.2 percent of the full value of the rebasing percentage change, except 
77.16 	that a Minnesota long-term hospital shall be rebased effective January 1, 2011, based on 
77.17 	its most recent Medicare cost report ending on or before September 1, 2008, with the 
77.18 	provisions under subdivisions 9 and 23, based on the rates in effect on December 31, 2010. 
77.19 	For subsequent rate setting periods in which the base years are updated, a Minnesota 
77.20 	long-term hospital's base year shall remain within the same period as other hospitals. 
77.21 	Effective April 1, 2012 January 1, 2013, rates shall be rebased at full value. The base year 
77.22 	operating payment rate per admission is standardized by the case mix index and adjusted 
77.23 	by the hospital cost index, relative values, and disproportionate population adjustment. 
77.24 	The cost and charge data used to establish operating rates shall only reflect inpatient 
77.25 	services covered by medical assistance and shall not include property cost information 
77.26 	and costs recognized in outlier payments.

77.27 	EFFECTIVE DATE. This section is effective July 1, 2010.

77.28 	Sec. 5. Minnesota Statutes 2009 Supplement, section 256.969, subdivision 3a, is 
77.29 	amended to read:
77.30 		Subd. 3a.Payments. (a) Acute care hospital billings under the medical 
77.31 	assistance program must not be submitted until the recipient is discharged. However, 
77.32 	the commissioner shall establish monthly interim payments for inpatient hospitals that 
77.33 	have individual patient lengths of stay over 30 days regardless of diagnostic category. 
77.34 	Except as provided in section 256.9693, medical assistance reimbursement for treatment 
78.1 	of mental illness shall be reimbursed based on diagnostic classifications. Individual 
78.2 	hospital payments established under this section and sections 256.9685, 256.9686, and 
78.3 	256.9695, in addition to third party and recipient liability, for discharges occurring during 
78.4 	the rate year shall not exceed, in aggregate, the charges for the medical assistance covered 
78.5 	inpatient services paid for the same period of time to the hospital. This payment limitation 
78.6 	shall be calculated separately for medical assistance and general assistance medical 
78.7 	care services. The limitation on general assistance medical care shall be effective for 
78.8 	admissions occurring on or after July 1, 1991. Services that have rates established under 
78.9 	subdivision 11 or 12, must be limited separately from other services. After consulting with 
78.10 	the affected hospitals, the commissioner may consider related hospitals one entity and 
78.11 	may merge the payment rates while maintaining separate provider numbers. The operating 
78.12 	and property base rates per admission or per day shall be derived from the best Medicare 
78.13 	and claims data available when rates are established. The commissioner shall determine 
78.14 	the best Medicare and claims data, taking into consideration variables of recency of the 
78.15 	data, audit disposition, settlement status, and the ability to set rates in a timely manner. 
78.16 	The commissioner shall notify hospitals of payment rates by December 1 of the year 
78.17 	preceding the rate year. The rate setting data must reflect the admissions data used to 
78.18 	establish relative values. Base year changes from 1981 to the base year established for the 
78.19 	rate year beginning January 1, 1991, and for subsequent rate years, shall not be limited 
78.20 	to the limits ending June 30, 1987, on the maximum rate of increase under subdivision 
78.21 	1. The commissioner may adjust base year cost, relative value, and case mix index data 
78.22 	to exclude the costs of services that have been discontinued by the October 1 of the year 
78.23 	preceding the rate year or that are paid separately from inpatient services. Inpatient stays 
78.24 	that encompass portions of two or more rate years shall have payments established based 
78.25 	on payment rates in effect at the time of admission unless the date of admission preceded 
78.26 	the rate year in effect by six months or more. In this case, operating payment rates for 
78.27 	services rendered during the rate year in effect and established based on the date of 
78.28 	admission shall be adjusted to the rate year in effect by the hospital cost index.
78.29 	(b) For fee-for-service admissions occurring on or after July 1, 2002, the total 
78.30 	payment, before third-party liability and spenddown, made to hospitals for inpatient 
78.31 	services is reduced by .5 percent from the current statutory rates.
78.32 	(c) In addition to the reduction in paragraph (b), the total payment for fee-for-service 
78.33 	admissions occurring on or after July 1, 2003, made to hospitals for inpatient services 
78.34 	before third-party liability and spenddown, is reduced five percent from the current 
78.35 	statutory rates. Mental health services within diagnosis related groups 424 to 432, and 
78.36 	facilities defined under subdivision 16 are excluded from this paragraph.
79.1 	(d) In addition to the reduction in paragraphs (b) and (c), the total payment for 
79.2 	fee-for-service admissions occurring on or after August 1, 2005, made to hospitals for 
79.3 	inpatient services before third-party liability and spenddown, is reduced 6.0 percent 
79.4 	from the current statutory rates. Mental health services within diagnosis related groups 
79.5 	424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph. 
79.6 	Notwithstanding section 256.9686, subdivision 7, for purposes of this paragraph, medical 
79.7 	assistance does not include general assistance medical care. Payments made to managed 
79.8 	care plans shall be reduced for services provided on or after January 1, 2006, to reflect 
79.9 	this reduction.
79.10 	(e) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for 
79.11 	fee-for-service admissions occurring on or after July 1, 2008, through June 30, 2009, made 
79.12 	to hospitals for inpatient services before third-party liability and spenddown, is reduced 
79.13 	3.46 percent from the current statutory rates. Mental health services with diagnosis related 
79.14 	groups 424 to 432 and facilities defined under subdivision 16 are excluded from this 
79.15 	paragraph. Payments made to managed care plans shall be reduced for services provided 
79.16 	on or after January 1, 2009, through June 30, 2009, to reflect this reduction.
79.17 	(f) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for 
79.18 	fee-for-service admissions occurring on or after July 1, 2009, through June 30, 2010, made 
79.19 	to hospitals for inpatient services before third-party liability and spenddown, is reduced 
79.20 	1.9 percent from the current statutory rates. Mental health services with diagnosis related 
79.21 	groups 424 to 432 and facilities defined under subdivision 16 are excluded from this 
79.22 	paragraph. Payments made to managed care plans shall be reduced for services provided 
79.23 	on or after July 1, 2009, through June 30, 2010, to reflect this reduction.
79.24 	(g) In addition to the reductions in paragraphs (b), (c), and (d), the total payment 
79.25 	for fee-for-service admissions occurring on or after July 1, 2010, made to hospitals for 
79.26 	inpatient services before third-party liability and spenddown, is reduced 1.79 percent 
79.27 	from the current statutory rates. Mental health services with diagnosis related groups 
79.28 	424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph. 
79.29 	Payments made to managed care plans shall be reduced for services provided on or after 
79.30 	July 1, 2010, to reflect this reduction.
79.31 	(h) In addition to the reductions in paragraphs (b), (c), (d), (f), and (g), the total 
79.32 	payment for fee-for-service admissions occurring on or after July 1, 2009, made to 
79.33 	hospitals for inpatient services before third-party liability and spenddown, is reduced 
79.34 	one percent from the current statutory rates. Facilities defined under subdivision 16 are 
79.35 	excluded from this paragraph. Payments made to managed care plans shall be reduced for 
79.36 	services provided on or after October 1, 2009, to reflect this reduction.
80.1 	(i) In order to offset the ratable reductions provided for in this subdivision, the total 
80.2 	payment rate for medical assistance fee-for-service admissions occurring on or after July 
80.3 	1, 2010, to June 30, 2011, made to Minnesota hospitals for inpatient services before 
80.4 	third-party liability and spenddown, shall be increased by five percent from the current 
80.5 	statutory rates. Effective July 1, 2011, the rate increase under this paragraph shall be 
80.6 	reduced to 1.96 percent. For purposes of this paragraph, medical assistance does not 
80.7 	include general assistance medical care. The commissioner shall not adjust rates paid to a 
80.8 	prepaid health plan under contract with the commissioner to reflect payments provided 
80.9 	in this paragraph. The commissioner may utilize a settlement process to adjust rates in 
80.10 	excess of the Medicare upper limits on payments.

80.11 	EFFECTIVE DATE. This section is effective July 1, 2010.

80.12 	Sec. 6. Minnesota Statutes 2008, section 256.969, subdivision 21, is amended to read:
80.13 		Subd. 21.Mental health or chemical dependency admissions; rates. (a) 
80.14 	Admissions under the general assistance medical care program occurring on or after 
80.15 	July 1, 1990, and admissions under medical assistance, excluding general assistance 
80.16 	medical care, occurring on or after July 1, 1990, and on or before September 30, 1992, 
80.17 	that are classified to a diagnostic category of mental health or chemical dependency 
80.18 	shall have rates established according to the methods of subdivision 14, except the per 
80.19 	day rate shall be multiplied by a factor of 2, provided that the total of the per day rates 
80.20 	shall not exceed the per admission rate. This methodology shall also apply when a hold 
80.21 	or commitment is ordered by the court for the days that inpatient hospital services are 
80.22 	medically necessary. Stays which are medically necessary for inpatient hospital services 
80.23 	and covered by medical assistance shall not be billable to any other governmental entity. 
80.24 	Medical necessity shall be determined under criteria established to meet the requirements 
80.25 	of section 256B.04, subdivision 15, or 256D.03, subdivision 7, paragraph (b). 
80.26 	(b) In order to ensure adequate access for the provision of mental health services 
80.27 	and to encourage broader delivery of these services outside the nonstate governmental 
80.28 	hospital setting, payment rates for medical assistance admissions occurring on or after 
80.29 	July 1, 2010, at a Minnesota private, not-for-profit hospital above the 75th percentile of all 
80.30 	Minnesota private, nonprofit hospitals for diagnosis-related groups 424 to 432 and 521 
80.31 	to 523 admissions paid by medical assistance for admissions occurring in calendar year 
80.32 	2007, shall be increased for these diagnosis-related groups at a percentage calculated to 
80.33 	cost not more than $10,000,000 each fiscal year, including state and federal shares. For 
80.34 	purposes of this paragraph, medical assistance does not include general assistance medical 
80.35 	care. The commissioner shall not adjust rates paid to a prepaid health plan under contract 
81.1 	with the commissioner to reflect payments provided in this paragraph. The commissioner 
81.2 	may utilize a settlement process to adjust rates in excess of the Medicare upper limits 
81.3 	on payments. 

81.4 	EFFECTIVE DATE. This section is effective July 1, 2010.

81.5 	Sec. 7. Minnesota Statutes 2008, section 256.969, subdivision 26, is amended to read:
81.6 		Subd. 26.Greater Minnesota payment adjustment after June 30, 2001. (a) For 
81.7 	admissions occurring after June 30, 2001, the commissioner shall pay fee-for-service 
81.8 	inpatient admissions for the diagnosis-related groups specified in paragraph (b) at hospitals 
81.9 	located outside of the seven-county metropolitan area at the higher of:
81.10 	(1) the hospital's current payment rate for the diagnostic category to which the 
81.11 	diagnosis-related group belongs, exclusive of disproportionate population adjustments 
81.12 	received under subdivision 9 and hospital payment adjustments received under subdivision 
81.13 	23; or
81.14 	(2) 90 percent of the average payment rate for that diagnostic category for hospitals 
81.15 	located within the seven-county metropolitan area, exclusive of disproportionate 
81.16 	population adjustments received under subdivision 9 and hospital payment adjustments 
81.17 	received under subdivisions 20 and 23.
81.18 	(b) The payment increases provided in paragraph (a) apply to the following 
81.19 	diagnosis-related groups, as they fall within the diagnostic categories:
81.20 	(1) 370 cesarean section with complicating diagnosis;
81.21 	(2) 371 cesarean section without complicating diagnosis;
81.22 	(3) 372 vaginal delivery with complicating diagnosis;
81.23 	(4) 373 vaginal delivery without complicating diagnosis;
81.24 	(5) 386 extreme immaturity and respiratory distress syndrome, neonate;
81.25 	(6) 388 full-term neonates with other problems;
81.26 	(7) 390 prematurity without major problems;
81.27 	(8) 391 normal newborn;
81.28 	(9) 385 neonate, died or transferred to another acute care facility;
81.29 	(10) 425 acute adjustment reaction and psychosocial dysfunction;
81.30 	(11) 430 psychoses;
81.31 	(12) 431 childhood mental disorders; and
81.32 	(13) 164-167 appendectomy.
81.33 	(c) For medical assistance admissions occurring on or after July 1, 2010, the 
81.34 	payment rate under paragraph (a), clause (2), shall be increased to 100 percent from 90 
81.35 	percent. For purposes of this paragraph, medical assistance does not include general 
82.1 	assistance medical care. The commissioner shall not adjust rates paid to a prepaid 
82.2 	health plan under contract with the commissioner to reflect payments provided in this 
82.3 	paragraph. The commissioner may utilize a settlement process to adjust rates in excess of 
82.4 	the Medicare upper limits on payments. 

82.5 	EFFECTIVE DATE. This section is effective July 1, 2010.

82.6 	Sec. 8. Minnesota Statutes 2008, section 256.969, is amended by adding a subdivision 
82.7 	to read:
82.8 		Subd. 31.Hospital payment adjustment after June 30, 2010. (a) For medical 
82.9 	assistance admissions occurring on or after July 1, 2010, to March 31, 2011, the 
82.10 	commissioner shall increase rates at Minnesota private, not-for-profit hospitals as follows:
82.11 	(1) for a hospital with total admissions reimbursed by government payers equal to or 
82.12 	greater than 50 percent, payment rates for inpatient hospital services shall be increased for 
82.13 	each admission by $250 multiplied by 437 percent;
82.14 	(2) for a hospital with total admissions reimbursed by government payers equal to 
82.15 	or greater than 40 percent but less than 50 percent, payment rates for inpatient hospital 
82.16 	services shall be increased for each admission by $250 multiplied by 349.6 percent; and
82.17 	(3) for a hospital with total admissions reimbursed by government payers of less 
82.18 	than 40 percent, payment rates for inpatient hospital services shall be increased for each 
82.19 	admission by $250 multiplied by 262.2 percent.
82.20 	(b) For medical assistance admissions occurring on or after April 1, 2011, the 
82.21 	commissioner shall increase rates at Minnesota private, not-for-profit hospitals as follows:
82.22 	(1) for a hospital with total admissions reimbursed by government payers equal to or 
82.23 	greater than 50 percent, payment rates for inpatient hospital services shall be increased for 
82.24 	each admission by $250 multiplied by 145 percent;
82.25 	(2) for a hospital with total admissions reimbursed by government payers equal to 
82.26 	or greater than 40 percent but less than 50 percent, payment rates for inpatient hospital 
82.27 	services shall be increased for each admission by $250 multiplied by 116 percent; and
82.28 	(3) for a hospital with total admissions reimbursed by government payers of less 
82.29 	than 40 percent, payment rates for inpatient hospital services shall be increased for each 
82.30 	admission by $250 multiplied by 87 percent.
82.31 	(c) For purposes of paragraphs (a) and (b), "government payers" means Medicare, 
82.32 	medical assistance, MinnesotaCare, and general assistance medical care.
82.33 	(d) For medical assistance admissions occurring on or after July 1, 2010, to March 
82.34 	31, 2011, the commissioner shall increase rates for inpatient hospital services at Minnesota 
82.35 	hospitals by $850 for each admission. For medical assistance admissions occurring on 
83.1 	or after April 1, 2011, the payment under this paragraph shall be reduced to $320 per 
83.2 	admission.
83.3 	(e) For purposes of this subdivision, medical assistance does not include general 
83.4 	assistance medical care. The commissioner shall not adjust rates paid to a prepaid 
83.5 	health plan under contract with the commissioner to reflect payments provided in this 
83.6 	subdivision. The commissioner may utilize a settlement process to adjust rates in excess 
83.7 	of the Medicare upper limits on payments.

83.8 	EFFECTIVE DATE. This section is effective July 1, 2010.

83.9 	Sec. 9. Minnesota Statutes 2008, section 256B.04, subdivision 14a, is amended to read:
83.10 		Subd. 14a.Level of need determination. Nonemergency medical transportation 
83.11 	level of need determinations must be performed by a physician, a registered nurse working 
83.12 	under direct supervision of a physician, a physician's assistant, a nurse practitioner, a 
83.13 	licensed practical nurse, or a discharge planner. Nonemergency medical transportation 
83.14 	level of need determinations must not be performed more than semiannually annually  on 
83.15 	any individual, unless the individual's circumstances have sufficiently changed so as 
83.16 	to require a new level of need determination. Individuals residing in licensed nursing 
83.17 	facilities are exempt from a level of need determination and are eligible for special 
83.18 	transportation services until the individual no longer resides in a licensed nursing facility. 
83.19 	If a person authorized by this subdivision to perform a level of need determination 
83.20 	determines that an individual requires stretcher transportation, the individual is presumed 
83.21 	to maintain that level of need until otherwise determined by a person authorized to 
83.22 	perform a level of need determination, or for six months, whichever is sooner.

83.23 	Sec. 10. Minnesota Statutes 2008, section 256B.055, is amended by adding a 
83.24 	subdivision to read:
83.25 		Subd. 15.Adults without children. Medical assistance may be paid for a person 
83.26 	who is:
83.27 	(1) at least age 21 and under age 65;
83.28 	(2) not pregnant;
83.29 	(3) not entitled to Medicare Part A or enrolled in Medicare Part B under Title XVIII 
83.30 	of the Social Security Act;
83.31 	(4) not an adult in a family with children as defined in section 256L.01, subdivision 
83.32 	3a; and
83.33 	(5) not described in another subdivision of this section.

84.1 	EFFECTIVE DATE. This section is effective July 1, 2010.

84.2 	Sec. 11. Minnesota Statutes 2008, section 256B.056, subdivision 3, is amended to read:
84.3 		Subd. 3.Asset limitations for individuals and families. (a) To be eligible for 
84.4 	medical assistance, a person must not individually own more than $3,000 in assets, or if a 
84.5 	member of a household with two family members, husband and wife, or parent and child, 
84.6 	the household must not own more than $6,000 in assets, plus $200 for each additional 
84.7 	legal dependent. In addition to these maximum amounts, an eligible individual or family 
84.8 	may accrue interest on these amounts, but they must be reduced to the maximum at the 
84.9 	time of an eligibility redetermination. The accumulation of the clothing and personal 
84.10 	needs allowance according to section 256B.35 must also be reduced to the maximum at 
84.11 	the time of the eligibility redetermination. The value of assets that are not considered in 
84.12 	determining eligibility for medical assistance is the value of those assets excluded under 
84.13 	the supplemental security income program for aged, blind, and disabled persons, with 
84.14 	the following exceptions: 
84.15 	(1) household goods and personal effects are not considered;
84.16 	(2) capital and operating assets of a trade or business that the local agency determines 
84.17 	are necessary to the person's ability to earn an income are not considered;
84.18 	(3) motor vehicles are excluded to the same extent excluded by the supplemental 
84.19 	security income program;
84.20 	(4) assets designated as burial expenses are excluded to the same extent excluded by 
84.21 	the supplemental security income program. Burial expenses funded by annuity contracts 
84.22 	or life insurance policies must irrevocably designate the individual's estate as contingent 
84.23 	beneficiary to the extent proceeds are not used for payment of selected burial expenses; and
84.24 	(5) effective upon federal approval, for a person who no longer qualifies as an 
84.25 	employed person with a disability due to loss of earnings, assets allowed while eligible 
84.26 	for medical assistance under section 256B.057, subdivision 9, are not considered for 12 
84.27 	months, beginning with the first month of ineligibility as an employed person with a 
84.28 	disability, to the extent that the person's total assets remain within the allowed limits of 
84.29 	section 256B.057, subdivision 9, paragraph (c).
84.30 	(b) No asset limit shall apply to persons eligible under section 256B.055, subdivision 
84.31 	15.

84.32 	EFFECTIVE DATE. This section is effective July 1, 2010.

84.33 	Sec. 12. Minnesota Statutes 2008, section 256B.056, subdivision 4, is amended to read:
85.1 		Subd. 4.Income. (a) To be eligible for medical assistance, a person eligible under 
85.2 	section 256B.055, subdivisions 7, 7a, and 12, may have income up to 100 percent of 
85.3 	the federal poverty guidelines. Effective January 1, 2000, and each successive January, 
85.4 	recipients of supplemental security income may have an income up to the supplemental 
85.5 	security income standard in effect on that date. 
85.6 	(b) To be eligible for medical assistance, families and children may have an income 
85.7 	up to 133-1/3 percent of the AFDC income standard in effect under the July 16, 1996, 
85.8 	AFDC state plan. Effective July 1, 2000, the base AFDC standard in effect on July 16, 
85.9 	1996, shall be increased by three percent.
85.10 	(c) Effective July 1, 2002, to be eligible for medical assistance, families and children 
85.11 	may have an income up to 100 percent of the federal poverty guidelines for the family size.
85.12 	(d) Effective July 1, 2010, to be eligible for medical assistance under section 
85.13 	256B.055, subdivision 15, a person may have an income up to 75 percent of federal 
85.14 	poverty guidelines for the family size.
85.15 	(e) In computing income to determine eligibility of persons under paragraphs (a) to 
85.16 	(c)(d) who are not residents of long-term care facilities, the commissioner shall disregard 
85.17 	increases in income as required by Public Law Numbers 94-566, section 503; 99-272; 
85.18 	and 99-509. Veterans aid and attendance benefits and Veterans Administration unusual 
85.19 	medical expense payments are considered income to the recipient.

85.20 	EFFECTIVE DATE. This section is effective July 1, 2010.

85.21 	Sec. 13. Minnesota Statutes 2008, section 256B.0625, subdivision 8, is amended to 
85.22 	read:
85.23 		Subd. 8.Physical therapy. Medical assistance covers physical therapy and related 
85.24 	services, including specialized maintenance therapy. Authorization by the commissioner 
85.25 	is required to provide medically necessary services to a recipient beyond any of the 
85.26 	following onetime service thresholds, or a lower threshold where one has been established 
85.27 	by the commissioner for a specified service: (1) 80 units of any approved CPT code other 
85.28 	than modalities; (2) 20 modality sessions; and (3) three evaluations or reevaluations. 
85.29 	Services provided by a physical therapy assistant shall be reimbursed at the same rate as 
85.30 	services performed by a physical therapist when the services of the physical therapy 
85.31 	assistant are provided under the direction of a physical therapist who is on the premises. 
85.32 	Services provided by a physical therapy assistant that are provided under the direction 
85.33 	of a physical therapist who is not on the premises shall be reimbursed at 65 percent of 
85.34 	the physical therapist rate.

86.1 	EFFECTIVE DATE. This section is effective July 1, 2010, for services provided 
86.2 	through fee-for-service, and January 1, 2011, for services provided through managed care.

86.3 	Sec. 14. Minnesota Statutes 2008, section 256B.0625, subdivision 8a, is amended to 
86.4 	read:
86.5 		Subd. 8a.Occupational therapy. Medical assistance covers occupational therapy 
86.6 	and related services, including specialized maintenance therapy. Authorization by the 
86.7 	commissioner is required to provide medically necessary services to a recipient beyond 
86.8 	any of the following onetime service thresholds, or a lower threshold where one has been 
86.9 	established by the commissioner for a specified service: (1) 120 units of any combination 
86.10 	of approved CPT codes; and (2) two evaluations or reevaluations. Services provided by an 
86.11 	occupational therapy assistant shall be reimbursed at the same rate as services performed 
86.12 	by an occupational therapist when the services of the occupational therapy assistant are 
86.13 	provided under the direction of the occupational therapist who is on the premises. Services 
86.14 	provided by an occupational therapy assistant that are provided under the direction of an 
86.15 	occupational therapist who is not on the premises shall be reimbursed at 65 percent of 
86.16 	the occupational therapist rate.

86.17 	EFFECTIVE DATE. This section is effective July 1, 2010, for services provided 
86.18 	through fee-for-service, and January 1, 2011, for services provided through managed care.

86.19 	Sec. 15. Minnesota Statutes 2008, section 256B.0625, subdivision 8b, is amended to 
86.20 	read:
86.21 		Subd. 8b.Speech language pathology and audiology services. Medical assistance 
86.22 	covers speech language pathology and related services, including specialized maintenance 
86.23 	therapy. Authorization by the commissioner is required to provide medically necessary 
86.24 	services to a recipient beyond any of the following onetime service thresholds, or a 
86.25 	lower threshold where one has been established by the commissioner for a specified 
86.26 	service: (1) 50 treatment sessions with any combination of approved CPT codes; and 
86.27 	(2) one evaluation. Medical assistance covers audiology services and related services. 
86.28 	Services provided by a person who has been issued a temporary registration under section 
86.29 	148.5161 shall be reimbursed at the same rate as services performed by a speech language 
86.30 	pathologist or audiologist as long as the requirements of section 148.5161, subdivision 
86.31 	3, are met. 

86.32 	EFFECTIVE DATE. This section is effective July 1, 2010, for services provided 
86.33 	through fee-for-service, and January 1, 2011, for services provided through managed care.

87.1 	Sec. 16. Minnesota Statutes 2008, section 256B.0625, is amended by adding a 
87.2 	subdivision to read:
87.3 		Subd. 8d.Chiropractic services. Payment for chiropractic services is limited to 
87.4 	one annual evaluation and 12 visits per year unless prior authorization of a greater number 
87.5 	of visits is obtained.

87.6 	Sec. 17. Minnesota Statutes 2009 Supplement, section 256B.0625, subdivision 13h, 
87.7 	is amended to read:
87.8 		Subd. 13h.Medication therapy management services. (a) Medical assistance 
87.9 	and general assistance medical care cover medication therapy management services for 
87.10 	a recipient taking four or more prescriptions to treat or prevent two or more chronic 
87.11 	medical conditions, or a recipient with a drug therapy problem that is identified or prior 
87.12 	authorized by the commissioner that has resulted or is likely to result in significant 
87.13 	nondrug program costs. The commissioner may cover medical therapy management 
87.14 	services under MinnesotaCare if the commissioner determines this is cost-effective. For 
87.15 	purposes of this subdivision, "medication therapy management" means the provision 
87.16 	of the following pharmaceutical care services by a licensed pharmacist to optimize the 
87.17 	therapeutic outcomes of the patient's medications:
87.18 	(1) performing or obtaining necessary assessments of the patient's health status;
87.19 	(2) formulating a medication treatment plan;
87.20 	(3) monitoring and evaluating the patient's response to therapy, including safety 
87.21 	and effectiveness;
87.22 	(4) performing a comprehensive medication review to identify, resolve, and prevent 
87.23 	medication-related problems, including adverse drug events;
87.24 	(5) documenting the care delivered and communicating essential information to 
87.25 	the patient's other primary care providers;
87.26 	(6) providing verbal education and training designed to enhance patient 
87.27 	understanding and appropriate use of the patient's medications;
87.28 	(7) providing information, support services, and resources designed to enhance 
87.29 	patient adherence with the patient's therapeutic regimens; and
87.30 	(8) coordinating and integrating medication therapy management services within the 
87.31 	broader health care management services being provided to the patient.
87.32 	Nothing in this subdivision shall be construed to expand or modify the scope of practice of 
87.33 	the pharmacist as defined in section 151.01, subdivision 27.
87.34 	(b) To be eligible for reimbursement for services under this subdivision, a pharmacist 
87.35 	must meet the following requirements:
88.1 	(1) have a valid license issued under chapter 151;
88.2 	(2) have graduated from an accredited college of pharmacy on or after May 1996, or 
88.3 	completed a structured and comprehensive education program approved by the Board of 
88.4 	Pharmacy and the American Council of Pharmaceutical Education for the provision and 
88.5 	documentation of pharmaceutical care management services that has both clinical and 
88.6 	didactic elements;
88.7 	(3) be practicing in an ambulatory care setting as part of a multidisciplinary team or 
88.8 	have developed a structured patient care process that is offered in a private or semiprivate 
88.9 	patient care area that is separate from the commercial business that also occurs in the 
88.10 	setting, or in home settings, excluding long-term care and group homes, if the service is 
88.11 	ordered by the provider-directed care coordination team; and
88.12 	(4) make use of an electronic patient record system that meets state standards.
88.13 	(c) For purposes of reimbursement for medication therapy management services, 
88.14 	the commissioner may enroll individual pharmacists as medical assistance and general 
88.15 	assistance medical care providers. The commissioner may also establish contact 
88.16 	requirements between the pharmacist and recipient, including limiting the number of 
88.17 	reimbursable consultations per recipient.
88.18 	(d) If there are no pharmacists who meet the requirements of paragraph (b) practicing 
88.19 	within a reasonable geographic distance of the patient, a pharmacist who meets the 
88.20 	requirements may provide the services via two-way interactive video. Reimbursement 
88.21 	shall be at the same rates and under the same conditions that would otherwise apply to 
88.22 	the services provided. To qualify for reimbursement under this paragraph, the pharmacist 
88.23 	providing the services must meet the requirements of paragraph (b), and must be located 
88.24 	within an ambulatory care setting approved by the commissioner. The patient must also 
88.25 	be located within an ambulatory care setting approved by the commissioner. Services 
88.26 	provided under this paragraph may not be transmitted into the patient's residence.
88.27 	(e) The commissioner shall establish a pilot project for an intensive medication 
88.28 	therapy management program for patients identified by the commissioner with multiple 
88.29 	chronic conditions and a high number of medications who are at high risk of preventable 
88.30 	hospitalizations, emergency room use, medication complications, and suboptimal 
88.31 	treatment outcomes due to medication-related problems. For purposes of the pilot 
88.32 	project, medication therapy management services may be provided in a patient's home 
88.33 	or community setting, in addition to other authorized settings. The commissioner may 
88.34 	waive existing payment policies and establish special payment rates for the pilot project. 
88.35 	The pilot project must be designed to produce a net savings to the state compared to the 
89.1 	estimated costs that would otherwise be incurred for similar patients without the program. 
89.2 	The pilot project must begin by January 1, 2010, and end June 30, 2012.

89.3 	EFFECTIVE DATE. This section is effective July 1, 2010.

89.4 	Sec. 18. Minnesota Statutes 2008, section 256B.0625, subdivision 18a, is amended to 
89.5 	read:
89.6 		Subd. 18a.Access to medical services. (a) Medical assistance reimbursement for 
89.7 	meals for persons traveling to receive medical care may not exceed $5.50 for breakfast, 
89.8 	$6.50 for lunch, or $8 for dinner.
89.9 	(b) Medical assistance reimbursement for lodging for persons traveling to receive 
89.10 	medical care may not exceed $50 per day unless prior authorized by the local agency.
89.11 	(c) Medical assistance direct mileage reimbursement to the eligible person or the 
89.12 	eligible person's driver may not exceed 20 cents per mile.
89.13 	(d) Regardless of the number of employees that an enrolled health care provider 
89.14 	may have, medical assistance covers sign and oral language interpreter services when 
89.15 	provided by an enrolled health care provider during the course of providing a direct, 
89.16 	person-to-person covered health care service to an enrolled recipient with limited English 
89.17 	proficiency or who has a hearing loss and uses interpreting services. Coverage for 
89.18 	face-to-face oral language interpreter services shall be provided only if the oral language 
89.19 	interpreter used by the enrolled health care provider is listed in the registry or roster 
89.20 	established under section 144.058.

89.21 	EFFECTIVE DATE. This section is effective January 1, 2011.

89.22 	Sec. 19. Minnesota Statutes 2008, section 256B.0625, subdivision 31, is amended to 
89.23 	read:
89.24 		Subd. 31.Medical supplies and equipment. Medical assistance covers medical 
89.25 	supplies and equipment. Separate payment outside of the facility's payment rate shall 
89.26 	be made for wheelchairs and wheelchair accessories for recipients who are residents 
89.27 	of intermediate care facilities for the developmentally disabled. Reimbursement for 
89.28 	wheelchairs and wheelchair accessories for ICF/MR recipients shall be subject to the same 
89.29 	conditions and limitations as coverage for recipients who do not reside in institutions. A 
89.30 	wheelchair purchased outside of the facility's payment rate is the property of the recipient.
89.31 	The commissioner may set reimbursement rates for specified categories of medical 
89.32 	supplies at levels below the Medicare payment rate.

90.1 	Sec. 20. Minnesota Statutes 2008, section 256B.0625, is amended by adding a 
90.2 	subdivision to read:
90.3 		Subd. 54.Services provided in birth centers. (a) Medical assistance covers 
90.4 	services provided in a licensed birth center by a licensed health professional if the service 
90.5 	would otherwise be covered if provided in a hospital.
90.6 	(b) Facility services provided by a birth center shall be paid at the lower of billed 
90.7 	charges or 70 percent of the statewide average for a facility payment rate made to a 
90.8 	hospital for an uncomplicated vaginal birth as determined using the most recent calendar 
90.9 	year for which complete claims data is available. If a recipient is transported from a birth 
90.10 	center to a hospital prior to the delivery, the payment for facility services to the birth center 
90.11 	shall be the lower of billed charges or 15 percent of the average facility payment made to a 
90.12 	hospital for the services provided for an uncomplicated vaginal delivery as determined 
90.13 	using the most recent calendar year for which complete claims data is available.
90.14 	(c) Nursery care services provided by a birth center shall be paid the lower of billed 
90.15 	charges or 70 percent of the statewide average for a payment rate paid to a hospital for 
90.16 	nursery care as determined by using the most recent calendar year for which complete 
90.17 	claims data is available.
90.18 	(d) Professional services provided by traditional midwives licensed under chapter 
90.19 	147D shall be paid at the lower of billed charges or 100 percent of the rate paid to a 
90.20 	physician performing the same services. If a recipient is transported from a birth center to 
90.21 	a hospital prior to the delivery, a licensed traditional midwife who does not perform the 
90.22 	delivery may not bill for any delivery services. Services are not covered if provided by an 
90.23 	unlicensed traditional midwife.
90.24 	(e) The commissioner shall apply for any necessary waivers from the Centers for 
90.25 	Medicare and Medicaid Services to allow birth centers and birth center providers to be 
90.26 	reimbursed.

90.27 	EFFECTIVE DATE. This section is effective July 1, 2010.

90.28 	Sec. 21. Minnesota Statutes 2008, section 256B.0631, subdivision 1, is amended to 
90.29 	read:
90.30 		Subdivision 1.Co-payments. (a) Except as provided in subdivision 2, the medical 
90.31 	assistance benefit plan shall include the following co-payments for all recipients, effective 
90.32 	for services provided on or after October 1, 2003, and before January 1, 2009:
90.33 	(1) $3 per nonpreventive visit. For purposes of this subdivision, a visit means an 
90.34 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
90.35 	established illness, and which is delivered in an ambulatory setting by a physician or 
91.1 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
91.2 	audiologist, optician, or optometrist;
91.3 	(2) $3 for eyeglasses;
91.4 	(3) $6 for nonemergency visits to a hospital-based emergency room; and
91.5 	(4) $3 per brand-name drug prescription and $1 per generic drug prescription, 
91.6 	subject to a $12 per month maximum for prescription drug co-payments. No co-payments 
91.7 	shall apply to antipsychotic drugs when used for the treatment of mental illness.
91.8 	(b) Except as provided in subdivision 2, the medical assistance benefit plan shall 
91.9 	include the following co-payments for all recipients, effective for services provided on 
91.10 	or after January 1, 2009:
91.11 	(1) $6 $3.50 for nonemergency visits to a hospital-based emergency room; 
91.12 	(2) $3 per brand-name drug prescription and $1 per generic drug prescription, 
91.13 	subject to a $7 per month maximum for prescription drug co-payments. No co-payments 
91.14 	shall apply to antipsychotic drugs when used for the treatment of mental illness; and
91.15 	(3) for individuals identified by the commissioner with income at or below 100 
91.16 	percent of the federal poverty guidelines, total monthly co-payments must not exceed five 
91.17 	percent of family income. For purposes of this paragraph, family income is the total 
91.18 	earned and unearned income of the individual and the individual's spouse, if the spouse is 
91.19 	enrolled in medical assistance and also subject to the five percent limit on co-payments.
91.20 	(c) Recipients of medical assistance are responsible for all co-payments in this 
91.21 	subdivision.

91.22 	EFFECTIVE DATE. This section is effective January 1, 2011.

91.23 	Sec. 22. Minnesota Statutes 2008, section 256B.0631, subdivision 3, is amended to 
91.24 	read:
91.25 		Subd. 3.Collection. (a) The medical assistance reimbursement to the provider 
91.26 	shall be reduced by the amount of the co-payment, except that reimbursements shall 
91.27 	not be reduced:
91.28 	(1) once a recipient has reached the $12 per month maximum or the $7 per month 
91.29 	maximum effective January 1, 2009, for prescription drug co-payments; or
91.30 	(2) for a recipient identified by the commissioner under 100 percent of the federal 
91.31 	poverty guidelines who has met their monthly five percent co-payment limit.
91.32 	(b) The provider collects the co-payment from the recipient. Providers may not deny 
91.33 	services to recipients who are unable to pay the co-payment.
92.1 	(c) Medical assistance reimbursement to fee-for-service providers and payments to 
92.2 	managed care plans shall not be increased as a result of the removal of the co-payments 
92.3 	effective on or after January 1, 2009.

92.4 	Sec. 23. Minnesota Statutes 2008, section 256B.0644, as amended by Laws 2010, 
92.5 	chapter 200, article 1, section 6, is amended to read:
92.6 	256B.0644 REIMBURSEMENT UNDER OTHER STATE HEALTH CARE 
92.7 	PROGRAMS.
92.8 	(a) A vendor of medical care, as defined in section 256B.02, subdivision 7, and a 
92.9 	health maintenance organization, as defined in chapter 62D, must participate as a provider 
92.10 	or contractor in the medical assistance program, general assistance medical care program, 
92.11 	and MinnesotaCare as a condition of participating as a provider in health insurance plans 
92.12 	and programs or contractor for state employees established under section 43A.18, the 
92.13 	public employees insurance program under section 43A.316, for health insurance plans 
92.14 	offered to local statutory or home rule charter city, county, and school district employees, 
92.15 	the workers' compensation system under section 176.135, and insurance plans provided 
92.16 	through the Minnesota Comprehensive Health Association under sections 62E.01 to 
92.17 	62E.19. The limitations on insurance plans offered to local government employees shall 
92.18 	not be applicable in geographic areas where provider participation is limited by managed 
92.19 	care contracts with the Department of Human Services.
92.20 	(b) For providers other than health maintenance organizations, participation in the 
92.21 	medical assistance program means that:
92.22 	 (1) the provider accepts new medical assistance, general assistance medical care, 
92.23 	and MinnesotaCare patients;
92.24 	(2) for providers other than dental service providers, at least 20 percent of the 
92.25 	provider's patients are covered by medical assistance, general assistance medical care, 
92.26 	and MinnesotaCare as their primary source of coverage; or
92.27 	(3) for dental service providers, at least ten percent of the provider's patients are 
92.28 	covered by medical assistance, general assistance medical care, and MinnesotaCare as 
92.29 	their primary source of coverage, or the provider accepts new medical assistance and 
92.30 	MinnesotaCare patients who are children with special health care needs. For purposes 
92.31 	of this section, "children with special health care needs" means children up to age 18 
92.32 	who: (i) require health and related services beyond that required by children generally; 
92.33 	and (ii) have or are at risk for a chronic physical, developmental, behavioral, or emotional 
92.34 	condition, including: bleeding and coagulation disorders; immunodeficiency disorders; 
92.35 	cancer; endocrinopathy; developmental disabilities; epilepsy, cerebral palsy, and other 
93.1 	neurological diseases; visual impairment or deafness; Down syndrome and other genetic 
93.2 	disorders; autism; fetal alcohol syndrome; and other conditions designated by the 
93.3 	commissioner after consultation with representatives of pediatric dental providers and 
93.4 	consumers.
93.5 	(c) Patients seen on a volunteer basis by the provider at a location other than 
93.6 	the provider's usual place of practice may be considered in meeting the participation 
93.7 	requirement in this section. The commissioner shall establish participation requirements 
93.8 	for health maintenance organizations. The commissioner shall provide lists of participating 
93.9 	medical assistance providers on a quarterly basis to the commissioner of management and 
93.10 	budget, the commissioner of labor and industry, and the commissioner of commerce. Each 
93.11 	of the commissioners shall develop and implement procedures to exclude as participating 
93.12 	providers in the program or programs under their jurisdiction those providers who do 
93.13 	not participate in the medical assistance program. The commissioner of management 
93.14 	and budget shall implement this section through contracts with participating health and 
93.15 	dental carriers.
93.16 	(d) Any hospital or other provider that is participating in a coordinated care 
93.17 	delivery system under section 256D.031, subdivision 6, or receives payments from the 
93.18 	uncompensated care pool under section 256D.031, subdivision 8, shall not refuse to 
93.19 	provide services to any patient enrolled in general assistance medical care regardless of 
93.20 	the availability or the amount of payment.
93.21 	(e) For purposes of paragraphs (a) and (b), participation in the general assistance 
93.22 	medical care program applies only to pharmacy providers.

93.23 	EFFECTIVE DATE. This section is effective July 1, 2010.

93.24 	Sec. 24. [256B.0755] HEALTH CARE DELIVERY SYSTEMS 
93.25 	DEMONSTRATION PROJECT.
93.26 		Subdivision 1.Implementation. (a) The commissioner shall develop and 
93.27 	authorize a demonstration project to test alternative and innovative health care delivery 
93.28 	systems, including accountable care organizations that provide services to a specified 
93.29 	patient population for an agreed upon total cost of care or risk-gain sharing payment 
93.30 	arrangement. The commissioner shall develop a request for proposals for participation in 
93.31 	the demonstration project in consultation with hospitals, primary care providers, health 
93.32 	plans, and other key stakeholders.
93.33 	(b) In developing the request for proposals, the commissioner shall:
94.1 	(1) establish uniform statewide methods of forecasting utilization and cost of care 
94.2 	for the appropriate Minnesota public program populations, to be used by the commissioner 
94.3 	for the health care delivery system projects;
94.4 	(2) identify key indicators of quality, access, patient satisfaction, and other 
94.5 	performance indicators that will be measured, in addition to indicators for measuring 
94.6 	cost savings;
94.7 	(3) allow maximum flexibility to encourage innovation and variation so that a variety 
94.8 	of provider collaborations are able to become health care delivery systems;
94.9 	(4) encourage and authorize different levels and types of financial risk;
94.10 	(5) encourage and authorize projects representing a wide variety of geographic 
94.11 	locations, patient populations, provider relationships, and care coordination models;
94.12 	(6) encourage projects that involve close partnerships between the health care 
94.13 	delivery system and counties and nonprofit agencies that provide services to patients 
94.14 	enrolled with the health care delivery system, including social services, public health, 
94.15 	mental health, community-based services, and continuing care;
94.16 	(7) encourage projects established by community hospitals, clinics, and other 
94.17 	providers in rural communities;
94.18 	(8) identify required covered services for a total cost of care model or services 
94.19 	considered in whole or partially in an analysis of utilization for a risk/gain sharing model;
94.20 	(9) establish a mechanism to monitor enrollment;
94.21 	(10) establish quality standards for the delivery system demonstrations; and
94.22 	(11) encourage participation of privately insured population so as to create sufficient 
94.23 	alignment in demonstration systems.
94.24 	(c) To be eligible to participate in the demonstration project, a health care delivery 
94.25 	system must:
94.26 	(1) provide required covered services and care coordination to recipients enrolled in 
94.27 	the health care delivery system;
94.28 	(2) establish a process to monitor enrollment and ensure the quality of care provided;
94.29 	(3) in cooperation with counties and community social service agencies, coordinate 
94.30 	the delivery of health care services with existing social services programs;
94.31 	(4) provide a system for advocacy and consumer protection; and
94.32 	(5) adopt innovative and cost-effective methods of care delivery and coordination, 
94.33 	which may include the use of allied health professionals, telemedicine, patient educators, 
94.34 	care coordinators, and community health workers.
95.1 	(d) A health care delivery system demonstration may be formed by the following 
95.2 	groups of providers of services and suppliers if they have established a mechanism for 
95.3 	shared governance:
95.4 	(1) professionals in group practice arrangements;
95.5 	(2) networks of individual practices of professionals;
95.6 	(3) partnerships or joint venture arrangements between hospitals and health care 
95.7 	professionals;
95.8 	(4) hospitals employing professionals; and
95.9 	(5) other groups of providers of services and suppliers as the commissioner 
95.10 	determines appropriate.
95.11 	A managed care plan or county-based purchasing plan may participate in this 
95.12 	demonstration in collaboration with one or more of the entities listed in clauses (1) to (5).
95.13 	A health care delivery system may contract with a managed care plan or a 
95.14 	county-based purchasing plan to provide administrative services, including the 
95.15 	administration of a payment system using the payment methods established by the 
95.16 	commissioner for health care delivery systems.
95.17 	(e) The commissioner may require a health care delivery system to enter into 
95.18 	additional third-party contractual relationships for the assessment of risk and purchase of 
95.19 	stop loss insurance or another form of insurance risk management related to the delivery 
95.20 	of care described in paragraph (c).
95.21 		Subd. 2.Enrollment. (a) Individuals eligible for medical assistance or 
95.22 	MinnesotaCare shall be eligible for enrollment in a health care delivery system.
95.23 	(b) Eligible applicants and recipients may enroll in a health care delivery system if 
95.24 	a system serves the county in which the applicant or recipient resides. If more than one 
95.25 	health care delivery system serves a county, the applicant or recipient shall be allowed 
95.26 	to choose among the delivery systems. The commissioner may assign an applicant or 
95.27 	recipient to a health care delivery system if a health care delivery system is available and 
95.28 	no choice has been made by the applicant or recipient.
95.29 		Subd. 3.Accountability. (a) Health care delivery systems must accept responsibility 
95.30 	for the quality of care based on standards established under subdivision 1, paragraph (b), 
95.31 	clause (10), and the cost of care or utilization of services provided to its enrollees under 
95.32 	subdivision 1, paragraph (b), clause (1).
95.33 	(b) A health care delivery system may contract and coordinate with providers and 
95.34 	clinics for the delivery of services and shall contract with community health clinics, 
95.35 	federally qualified health centers, community mental health centers or programs, and rural 
95.36 	clinics to the extent practicable.
96.1 		Subd. 4.Payment system. (a) In developing a payment system for health care 
96.2 	delivery systems, the commissioner shall establish a total cost of care benchmark or a 
96.3 	risk/gain sharing payment model to be paid for services provided to the recipients enrolled 
96.4 	in a health care delivery system.
96.5 	(b) The payment system may include incentive payments to health care delivery 
96.6 	systems that meet or exceed annual quality and performance targets realized through 
96.7 	the coordination of care.
96.8 	(c) An amount equal to the savings realized to the general fund as a result of the 
96.9 	demonstration project shall be transferred each fiscal year to the health care access fund.
96.10 		Subd. 5.Outpatient prescription drug coverage. Outpatient prescription drug 
96.11 	coverage may be provided through accountable care organizations only if the delivery 
96.12 	method qualifies for federal prescription drug rebates.
96.13 		Subd. 6.Federal approval. The commissioner shall apply for any federal waivers 
96.14 	or other federal approval required to implement this section. The commissioner shall 
96.15 	also apply for any applicable grant or demonstration under the Patient Protection and 
96.16 	Affordable Health Care Act, Public Law 111-148, or the Health Care and Education 
96.17 	Reconciliation Act of 2010, Public Law 111-152, that would further the purposes of or 
96.18 	assist in the establishment of accountable care organizations.
96.19 		Subd. 7.Expansion. The commissioner shall explore the expansion of the 
96.20 	demonstration project to include additional medical assistance and MinnesotaCare 
96.21 	enrollees, and shall seek participation of Medicare in demonstration projects. The 
96.22 	commissioner shall seek to include participation of privately insured persons and Medicare 
96.23 	recipients in the health care delivery demonstration.

96.24 	EFFECTIVE DATE. This section is effective July 1, 2011.

96.25 	Sec. 25. [256B.0756] HENNEPIN AND RAMSEY COUNTIES PILOT 
96.26 	PROGRAM.
96.27 	(a) The commissioner, upon federal approval of a new waiver request or amendment 
96.28 	of an existing demonstration, may establish a pilot program in Hennepin County or 
96.29 	Ramsey County, or both, to test alternative and innovative integrated health care delivery 
96.30 	networks.
96.31 	(b) Individuals eligible for the pilot program shall be individuals who are eligible for 
96.32 	medical assistance under Minnesota Statutes, section 256B.055, subdivision 15, and who 
96.33 	reside in Hennepin County or Ramsey County.
96.34 	(c) Individuals enrolled in the pilot shall be enrolled in an integrated health care 
96.35 	delivery network in their county of residence. The integrated health care delivery network 
97.1 	in Hennepin County shall be a network, such as an accountable care organization or a 
97.2 	community-based collaborative care network, created by or including Hennepin County 
97.3 	Medical Center. The integrated health care delivery network in Ramsey County shall be 
97.4 	a network, such as an accountable care organization or community-based collaborative 
97.5 	care network, created by or including Regions Hospital.
97.6 	(d) The commissioner shall cap pilot program enrollment at 7,000 enrollees for 
97.7 	Hennepin County and 3,500 enrollees for Ramsey County.
97.8 	(e) In developing a payment system for the pilot programs, the commissioner shall 
97.9 	establish a total cost of care for the recipients enrolled in the pilot programs that equals 
97.10 	the cost of care that would otherwise be spent for these enrollees in the prepaid medical 
97.11 	assistance program.
97.12 	(f) Counties may transfer funds necessary to support the nonfederal share of 
97.13 	payments for integrated health care delivery networks in their county. Such transfers per 
97.14 	county shall not exceed 15 percent of the expected expenses for county enrollees.
97.15 	(g) The commissioner shall apply to the federal government for, or as appropriate, 
97.16 	cooperate with counties, providers, or other entities that are applying for any applicable 
97.17 	grant or demonstration under the Patient Protection and Affordable Health Care Act, Public 
97.18 	Law 111-148, or the Health Care and Education Reconciliation Act of 2010, Public Law 
97.19 	111-152, that would further the purposes of or assist in the creation of an integrated health 
97.20 	care delivery network for the purposes of this subdivision, including, but not limited to, a 
97.21 	global payment demonstration or the community-based collaborative care network grants.

97.22 	Sec. 26. Minnesota Statutes 2009 Supplement, section 256B.69, subdivision 5a, 
97.23 	is amended to read:
97.24 		Subd. 5a.Managed care contracts. (a) Managed care contracts under this section 
97.25 	and sections 256L.12 and 256D.03, shall be entered into or renewed on a calendar year 
97.26 	basis beginning January 1, 1996. Managed care contracts which were in effect on June 
97.27 	30, 1995, and set to renew on July 1, 1995, shall be renewed for the period July 1, 1995 
97.28 	through December 31, 1995 at the same terms that were in effect on June 30, 1995. The 
97.29 	commissioner may issue separate contracts with requirements specific to services to 
97.30 	medical assistance recipients age 65 and older.
97.31 	(b) A prepaid health plan providing covered health services for eligible persons 
97.32 	pursuant to chapters 256B, 256D, and 256L, is responsible for complying with the terms 
97.33 	of its contract with the commissioner. Requirements applicable to managed care programs 
97.34 	under chapters 256B, 256D, and 256L, established after the effective date of a contract 
97.35 	with the commissioner take effect when the contract is next issued or renewed.
98.1 	(c) Effective for services rendered on or after January 1, 2003, the commissioner 
98.2 	shall withhold five percent of managed care plan payments under this section and 
98.3 	county-based purchasing plan's payment rate plan payments under section 256B.692 for 
98.4 	the prepaid medical assistance and general assistance medical care programs pending 
98.5 	completion of performance targets. Each performance target must be quantifiable, 
98.6 	objective, measurable, and reasonably attainable, except in the case of a performance target 
98.7 	based on a federal or state law or rule. Criteria for assessment of each performance target 
98.8 	must be outlined in writing prior to the contract effective date. The managed care plan 
98.9 	must demonstrate, to the commissioner's satisfaction, that the data submitted regarding 
98.10 	attainment of the performance target is accurate. The commissioner shall periodically 
98.11 	change the administrative measures used as performance targets in order to improve plan 
98.12 	performance across a broader range of administrative services. The performance targets 
98.13 	must include measurement of plan efforts to contain spending on health care services and 
98.14 	administrative activities. The commissioner may adopt plan-specific performance targets 
98.15 	that take into account factors affecting only one plan, including characteristics of the 
98.16 	plan's enrollee population. The withheld funds must be returned no sooner than July of the 
98.17 	following year if performance targets in the contract are achieved. The commissioner may 
98.18 	exclude special demonstration projects under subdivision 23.
98.19 	(d) Effective for services rendered on or after January 1, 2009, through December 31, 
98.20 	2009, the commissioner shall withhold three percent of managed care plan payments under 
98.21 	this section and county-based purchasing plan payments under section 256B.692 for the 
98.22 	prepaid medical assistance and general assistance medical care programs. The withheld 
98.23 	funds must be returned no sooner than July 1 and no later than July 31 of the following 
98.24 	year. The commissioner may exclude special demonstration projects under subdivision 23.
98.25 	The return of the withhold under this paragraph is not subject to the requirements of 
98.26 	paragraph (c).
98.27 	(e) Effective for services provided on or after January 1, 2010, the commissioner 
98.28 	shall require that managed care plans use the assessment and authorization processes, 
98.29 	forms, timelines, standards, documentation, and data reporting requirements, protocols, 
98.30 	billing processes, and policies consistent with medical assistance fee-for-service or the 
98.31 	Department of Human Services contract requirements consistent with medical assistance 
98.32 	fee-for-service or the Department of Human Services contract requirements for all 
98.33 	personal care assistance services under section 256B.0659.
98.34 	(f) Effective for services rendered on or after January 1, 2010, through December 
98.35 	31, 2010, the commissioner shall withhold 3.5 percent of managed care plan payments 
98.36 	under this section and county-based purchasing plan payments under section 256B.692 
99.1 	for the prepaid medical assistance program. The withheld funds must be returned no 
99.2 	sooner than July 1 and no later than July 31 of the following year. The commissioner may 
99.3 	exclude special demonstration projects under subdivision 23.
99.4 	(g) Effective for services rendered on or after January 1, 2011, the commissioner 
99.5 	shall include as part of the performance targets described in paragraph (c) a reduction in 
99.6 	the health plan's emergency room utilization rate for state health care program enrollees 
99.7 	by a measurable rate of five percent from the plan's utilization rate for state health care 
99.8 	program enrollees for the previous calendar year.
99.9 	The withheld funds must be returned no sooner than July 1 and no later than July 31 
99.10 	of the following calendar year if the managed care plan demonstrates to the satisfaction of 
99.11 	the commissioner that a reduction in the utilization rate was achieved.
99.12 	The withhold described in this paragraph shall continue for each consecutive 
99.13 	contract period until the plan's emergency room utilization rate for state health care 
99.14 	program enrollees is reduced by 25 percent of the plan's emergency room utilization 
99.15 	rate for state health care program enrollees for calendar year 2009. Hospitals shall 
99.16 	cooperate with the health plans in meeting this performance target and shall accept 
99.17 	payment withholds that may be returned to the hospitals if the performance target is 
99.18 	achieved. The commissioner shall structure the withhold so that the commissioner returns 
99.19 	a portion of the withheld funds in amounts commensurate with achieved reductions in 
99.20 	utilization less than the targeted amount. The withhold in this paragraph does not apply to 
99.21 	county-based purchasing plans.
99.22 	(g) (h) Effective for services rendered on or after January 1, 2011, through December 
99.23 	31, 2011, the commissioner shall withhold four percent of managed care plan payments 
99.24 	under this section and county-based purchasing plan payments under section 256B.692
99.25 	for the prepaid medical assistance program. The withheld funds must be returned no 
99.26 	sooner than July 1 and no later than July 31 of the following year. The commissioner may 
99.27 	exclude special demonstration projects under subdivision 23.
99.28 	(h) (i) Effective for services rendered on or after January 1, 2012, through December 
99.29 	31, 2012, the commissioner shall withhold 4.5 percent of managed care plan payments 
99.30 	under this section and county-based purchasing plan payments under section 256B.692 
99.31 	for the prepaid medical assistance program. The withheld funds must be returned no 
99.32 	sooner than July 1 and no later than July 31 of the following year. The commissioner may 
99.33 	exclude special demonstration projects under subdivision 23.
99.34 	(i) (j) Effective for services rendered on or after January 1, 2013, through December 
99.35 	31, 2013, the commissioner shall withhold 4.5 percent of managed care plan payments 
99.36 	under this section and county-based purchasing plan payments under section 256B.692 
100.1 	for the prepaid medical assistance program. The withheld funds must be returned no 
100.2 	sooner than July 1 and no later than July 31 of the following year. The commissioner may 
100.3 	exclude special demonstration projects under subdivision 23.
100.4 	(j) (k) Effective for services rendered on or after January 1, 2014, the commissioner 
100.5 	shall withhold three percent of managed care plan payments under this section and 
100.6 	county-based purchasing plan payments under section 256B.692 for the prepaid medical 
100.7 	assistance and prepaid general assistance medical care programs. The withheld funds must 
100.8 	be returned no sooner than July 1 and no later than July 31 of the following year. The 
100.9 	commissioner may exclude special demonstration projects under subdivision 23.
100.10 	(k) (l) A managed care plan or a county-based purchasing plan under section 
100.11 	256B.692 may include as admitted assets under section 62D.044 any amount withheld 
100.12 	under this section that is reasonably expected to be returned.
100.13 	(l) (m) Contracts between the commissioner and a prepaid health plan are exempt 
100.14 	from the set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph 
100.15 	(a), and 7.

100.16 	EFFECTIVE DATE. This section is effective July 1, 2010.

100.17 	Sec. 27. Minnesota Statutes 2008, section 256B.69, is amended by adding a 
100.18 	subdivision to read:
100.19 		Subd. 5k.Rate modifications. For services rendered on or after October 1, 2010, 
100.20 	the total payment made to managed care plans and county-based purchasing plans under 
100.21 	the medical assistance program shall be increased by 0.88 percent.

100.22 	EFFECTIVE DATE. This section is effective October 1, 2010.

100.23 	Sec. 28. Minnesota Statutes 2008, section 256B.69, is amended by adding a 
100.24 	subdivision to read:
100.25 		Subd. 5l.Actuarial soundness. (a) Rates paid to managed care plans and 
100.26 	county-based purchasing plans shall satisfy requirements for actuarial soundness. In order 
100.27 	to comply with this subdivision, the rates must:
100.28 	(1) be neither inadequate nor excessive;
100.29 	(2) satisfy federal requirements;
100.30 	(3) in the case of contracts with incentive arrangements, not exceed 105 percent of 
100.31 	the approved capitation payments attributable to the enrollees or services covered by 
100.32 	the incentive arrangement;
101.1 	(4) be developed in accordance with generally accepted actuarial principles and 
101.2 	practices;
101.3 	(5) be appropriate for the populations to be covered and the services to be furnished 
101.4 	under the contract; and
101.5 	(6) be certified as meeting the requirements of federal regulations by actuaries who 
101.6 	meet the qualification standards established by the American Academy of Actuaries and 
101.7 	follow the practice standards established by the Actuarial Standards Board.
101.8 	(b) Each year within 30 days of the establishment of plan rates, the commissioner 
101.9 	shall report to the chairs and ranking minority members of the senate Health and Human 
101.10 	Services Budget Division and the house of representatives Health Care and Human 
101.11 	Services Finance Division to certify how each of these conditions have been met by 
101.12 	the new payment rates.

101.13 	Sec. 29. Minnesota Statutes 2008, section 256B.69, subdivision 20, as amended by 
101.14 	Laws 2010, chapter 200, article 1, section 10, is amended to read:
101.15 		Subd. 20.Ombudsperson. (a) The commissioner shall designate an ombudsperson 
101.16 	to advocate for persons required to enroll in prepaid health plans under this section. The 
101.17 	ombudsperson shall advocate for recipients enrolled in prepaid health plans through 
101.18 	complaint and appeal procedures and ensure that necessary medical services are provided 
101.19 	either by the prepaid health plan directly or by referral to appropriate social services. At 
101.20 	the time of enrollment in a prepaid health plan, the local agency shall inform recipients 
101.21 	about the ombudsperson program and their right to a resolution of a complaint by the 
101.22 	prepaid health plan if they experience a problem with the plan or its providers.
101.23 	(b) The commissioner shall designate an ombudsperson to advocate for persons 
101.24 	enrolled in a care coordination delivery system under section 256D.031. The 
101.25 	ombudsperson shall advocate for recipients enrolled in a care coordination delivery 
101.26 	system through the state appeal process and assist enrollees in accessing necessary 
101.27 	medical services through the care coordination delivery systems directly or by referral to 
101.28 	appropriate services. At the time of enrollment in a care coordination delivery system, the 
101.29 	local agency shall inform recipients about the ombudsperson program.

101.30 	Sec. 30. Minnesota Statutes 2008, section 256B.69, subdivision 27, is amended to read:
101.31 		Subd. 27. Information for persons with limited English-language proficiency.
 101.32 	Managed care contracts entered into under this section and sections 256D.03, subdivision 
101.33 	4, paragraph (c), andsection 256L.12 must require demonstration providers to provide 
101.34 	language assistance to enrollees that ensures meaningful access to its programs and 
102.1 	services according to Title VI of the Civil Rights Act and federal regulations adopted 
102.2 	under that law or any guidance from the United States Department of Health and Human 
102.3 	Services. 

102.4 	EFFECTIVE DATE. This section is effective retroactively from April 1, 2010.

102.5 	Sec. 31. Minnesota Statutes 2008, section 256B.692, subdivision 1, is amended to read:
102.6 		Subdivision 1.In general. County boards or groups of county boards may elect 
102.7 	to purchase or provide health care services on behalf of persons eligible for medical 
102.8 	assistance and general assistance medical care who would otherwise be required to or may 
102.9 	elect to participate in the prepaid medical assistance or prepaid general assistance medical 
102.10 	care programs according to sectionssection 256B.69and 256D.03. Counties that elect to 
102.11 	purchase or provide health care under this section must provide all services included in 
102.12 	prepaid managed care programs according to sectionssection 256B.69, subdivisions 1 
102.13 	to 22, and 256D.03. County-based purchasing under this section is governed by section 
102.14 	256B.69, unless otherwise provided for under this section.  

102.15 	EFFECTIVE DATE. This section is effective retroactively from April 1, 2010.

102.16 	Sec. 32. Minnesota Statutes 2009 Supplement, section 256B.76, subdivision 1, is 
102.17 	amended to read:
102.18 		Subdivision 1.Physician reimbursement.  (a) Effective for services rendered on 
102.19 	or after October 1, 1992, the commissioner shall make payments for physician services 
102.20 	as follows:
102.21 	(1) payment for level one Centers for Medicare and Medicaid Services' common 
102.22 	procedural coding system codes titled "office and other outpatient services," "preventive 
102.23 	medicine new and established patient," "delivery, antepartum, and postpartum care," 
102.24 	"critical care," cesarean delivery and pharmacologic management provided to psychiatric 
102.25 	patients, and level three codes for enhanced services for prenatal high risk, shall be paid 
102.26 	at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 
102.27 	30, 1992. If the rate on any procedure code within these categories is different than the 
102.28 	rate that would have been paid under the methodology in section 256B.74, subdivision 2, 
102.29 	then the larger rate shall be paid;
102.30 	(2) payments for all other services shall be paid at the lower of (i) submitted charges, 
102.31 	or (ii) 15.4 percent above the rate in effect on June 30, 1992; and
102.32 	(3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th 
102.33 	percentile of 1989, less the percent in aggregate necessary to equal the above increases 
103.1 	except that payment rates for home health agency services shall be the rates in effect 
103.2 	on September 30, 1992.
103.3 	(b) Effective for services rendered on or after January 1, 2000, payment rates for 
103.4 	physician and professional services shall be increased by three percent over the rates 
103.5 	in effect on December 31, 1999, except for home health agency and family planning 
103.6 	agency services. The increases in this paragraph shall be implemented January 1, 2000, 
103.7 	for managed care.
103.8 	(c) Effective for services rendered on or after July 1, 2009, payment rates for 
103.9 	physician and professional services shall be reduced by five percent over the rates in effect 
103.10 	on June 30, 2009. This reduction doesand the reductions in paragraph (d) do not apply 
103.11 	to office or other outpatient visits, preventive medicine visits and family planning visits 
103.12 	billed by physicians, advanced practice nurses, or physician assistants in a family planning 
103.13 	agency or in one of the following primary care practices: general practice, general internal 
103.14 	medicine, general pediatrics, general geriatrics, and family medicine. This reduction does
103.15 	and the reductions in paragraph (d) do not apply to federally qualified health centers, 
103.16 	rural health centers, and Indian health services. Effective October 1, 2009, payments 
103.17 	made to managed care plans and county-based purchasing plans under sections 256B.69, 
103.18 	256B.692, and 256L.12 shall reflect the payment reduction described in this paragraph.
103.19 	(d) Effective for services rendered on or after July 1, 2010, payment rates for 
103.20 	physician and professional services shall be reduced an additional seven percent over 
103.21 	the five percent reduction in rates described in paragraph (c). This additional reduction 
103.22 	does not apply to physical therapy services, occupational therapy services, and speech 
103.23 	pathology and related services provided on or after July 1, 2010. This additional reduction 
103.24 	does not apply to physician services billed by a psychiatrist or an advanced practice nurse 
103.25 	with a specialty in mental health. Effective October 1, 2010, payments made to managed 
103.26 	care plans and county-based purchasing plans under sections 256B.69, 256B.692, and 
103.27 	256L.12 shall reflect the payment reduction described in this paragraph.
103.28 	(e) Effective for services rendered on or after October 1, 2010, payment rates for 
103.29 	physician and professional services billed by physicians employed by and clinics owned 
103.30 	by a nonprofit health maintenance organization shall be increased by 14 percent. Effective 
103.31 	October 1, 2010, payments made to managed care plans and county-based purchasing 
103.32 	plans under sections 256B.69, 256B.692, and 256L.12, shall reflect the payment increase 
103.33 	described in this paragraph.

103.34 	EFFECTIVE DATE. This section is effective July 1, 2010.

103.35 	Sec. 33. Minnesota Statutes 2008, section 256B.76, subdivision 2, is amended to read:
104.1 		Subd. 2.Dental reimbursement.  (a) Effective for services rendered on or after 
104.2 	October 1, 1992, the commissioner shall make payments for dental services as follows:
104.3 	(1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25 
104.4 	percent above the rate in effect on June 30, 1992; and
104.5 	(2) dental rates shall be converted from the 50th percentile of 1982 to the 50th 
104.6 	percentile of 1989, less the percent in aggregate necessary to equal the above increases.
104.7 	(b) Beginning October 1, 1999, the payment for tooth sealants and fluoride treatments 
104.8 	shall be the lower of (1) submitted charge, or (2) 80 percent of median 1997 charges.
104.9 	(c) Effective for services rendered on or after January 1, 2000, payment rates for 
104.10 	dental services shall be increased by three percent over the rates in effect on December 
104.11 	31, 1999.
104.12 	(d) Effective for services provided on or after January 1, 2002, payment for 
104.13 	diagnostic examinations and dental x-rays provided to children under age 21 shall be the 
104.14 	lower of (1) the submitted charge, or (2) 85 percent of median 1999 charges.
104.15 	(e) The increases listed in paragraphs (b) and (c) shall be implemented January 1, 
104.16 	2000, for managed care.
104.17 	(f) Effective for dental services rendered on or after October 1, 2010, by a 
104.18 	state-operated dental clinic, payment shall be paid on a reasonable cost basis that is based 
104.19 	on the Medicare principles of reimbursement. This payment shall be effective for services 
104.20 	rendered on or after January 1, 2011, to recipients enrolled in managed care plans or 
104.21 	county-based purchasing plans.
104.22 	(g) Beginning in fiscal year 2011, if the payments to state-operated dental clinics 
104.23 	in paragraph (f), including state and federal shares, are less than $1,850,000 per fiscal 
104.24 	year, a supplemental state payment equal to the difference between the total payments 
104.25 	in paragraph (f) and $1,850,000 shall be paid from the general fund to state-operated 
104.26 	services for the operation of the dental clinics.
104.27 	(h) If the cost-based payment system for state-operated dental clinics described in 
104.28 	paragraph (f) does not receive federal approval, then state-operated dental clinics shall be 
104.29 	designated as critical access dental providers under subdivision 4, paragraph (b), and shall 
104.30 	receive the critical access dental reimbursement rate as described under subdivision 4, 
104.31 	paragraph (a).

104.32 	EFFECTIVE DATE. This section is effective July 1, 2010.

104.33 	Sec. 34. Minnesota Statutes 2008, section 256B.76, subdivision 4, is amended to read:
104.34 		Subd. 4.Critical access dental providers.  (a) Effective for dental services 
104.35 	rendered on or after January 1, 2002, the commissioner shall increase reimbursements 
105.1 	to dentists and dental clinics deemed by the commissioner to be critical access dental 
105.2 	providers. For dental services rendered on or after July 1, 2007, the commissioner shall 
105.3 	increase reimbursement by 30 percent above the reimbursement rate that would otherwise 
105.4 	be paid to the critical access dental provider. The commissioner shall pay the health plan 
105.5 	companies managed care plans and county-based purchasing plans  in amounts sufficient 
105.6 	to reflect increased reimbursements to critical access dental providers as approved by the 
105.7 	commissioner. In determining which dentists and dental clinics shall be deemed critical 
105.8 	access dental providers, the commissioner shall review:
105.9 	(b) The commissioner shall designate the following dentists and dental clinics as 
105.10 	critical access dental providers:
105.11 	(1) the utilization rate in the service area in which the dentist or dental clinic operates 
105.12 	for dental services to patients covered by medical assistance, general assistance medical 
105.13 	care, or MinnesotaCare as their primary source of coverage nonprofit community clinics 
105.14 	that:
105.15 	(i) have nonprofit status in accordance with chapter 317A;
105.16 	(ii) have tax exempt status in accordance with the Internal Revenue Code, section 
105.17 	501(c)(3);
105.18 	(iii) are established to provide oral health services to patients who are low income, 
105.19 	uninsured, have special needs, and are underserved;
105.20 	(iv) have professional staff familiar with the cultural background of the clinic's 
105.21 	patients;
105.22 	(v) charge for services on a sliding fee scale designed to provide assistance to 
105.23 	low-income patients based on current poverty income guidelines and family size;
105.24 	(vi) do not restrict access or services because of a patient's financial limitations 
105.25 	or public assistance status; and
105.26 	(vii) have free care available as needed;
105.27 	(2) the level of services provided by the dentist or dental clinic to patients covered 
105.28 	by medical assistance, general assistance medical care, or MinnesotaCare as their primary 
105.29 	source of coverage federally qualified health centers, rural health clinics, and public 
105.30 	health clinics; and
105.31 	(3) whether the level of services provided by the dentist or dental clinic is critical 
105.32 	to maintaining adequate levels of patient access within the service area county owned 
105.33 	and operated hospital-based dental clinics;
105.34 	(4) a dental clinic or dental group owned and operated by a nonprofit corporation in 
105.35 	accordance with chapter 317A with more than 10,000 patient encounters per year with 
106.1 	patients who are uninsured or covered by medical assistance, general assistance medical 
106.2 	care, or MinnesotaCare; and
106.3 	(5) a dental clinic associated with an oral health or dental education program 
106.4 	operated by the University of Minnesota or an institution within the Minnesota State 
106.5 	Colleges and Universities system.
106.6 	In the absence of a critical access dental provider in a service area, (c) The 
106.7 	commissioner may designate a dentist or dental clinic as a critical access dental provider 
106.8 	if the dentist or dental clinic is willing to provide care to patients covered by medical 
106.9 	assistance, general assistance medical care, or MinnesotaCare at a level which significantly 
106.10 	increases access to dental care in the service area.

106.11 	EFFECTIVE DATE. This section is effective July 1, 2010.

106.12 	Sec. 35. Minnesota Statutes 2009 Supplement, section 256B.766, is amended to read: 
106.13 	256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.
106.14 	(a) Effective for services provided on or after July 1, 2009, total payments for 
106.15 	basic care services, shall be reduced by three percent, prior to third-party liability and 
106.16 	spenddown calculation. Effective July 1, 2010, the commissioner shall classify physical 
106.17 	therapy services, occupational therapy services, and speech language pathology and 
106.18 	related services as basic care services. The reduction in this paragraph shall apply to 
106.19 	physical therapy services, occupational therapy services, and speech language pathology 
106.20 	and related services provided on or after July 1, 2010. 
106.21 	(b) Payments made to managed care plans and county-based purchasing plans shall 
106.22 	be reduced for services provided on or after October 1, 2009, to reflect thisthe reduction
106.23 	effective July 1, 2009, and payments made to the plans shall be reduced effective October 
106.24 	1, 2010, to reflect the reduction effective July 1, 2010.
106.25 	(b)(c) This section does not apply to physician and professional services, inpatient 
106.26 	hospital services, family planning services, mental health services, dental services, 
106.27 	prescription drugs, medical transportation, federally qualified health centers, rural health 
106.28 	centers, Indian health services, and Medicare cost-sharing.

106.29 	Sec. 36. [256B.767] MEDICARE PAYMENT LIMIT.
106.30 	(a) Effective for services rendered on or after July 1, 2010, fee-for-service payment 
106.31 	rates for physician and professional services under section 256B.76, subdivision 1, and 
106.32 	basic care services subject to the rate reduction specified in section 256B.766, shall not 
106.33 	exceed the Medicare payment rate for the applicable service, as adjusted for any changes 
107.1 	in Medicare payment rates after July 1, 2010. The commissioner shall implement this 
107.2 	section after any other rate adjustment that is effective July 1, 2010, and shall reduce rates 
107.3 	under this section by first reducing or eliminating provider rate add-ons.
107.4 	(b) This section does not apply to services provided by advanced practice certified 
107.5 	nurse midwives licensed under chapter 148 or traditional midwives licensed under chapter 
107.6 	147D. Notwithstanding this exemption, medical assistance fee-for-service payment rates 
107.7 	for advanced practice certified nurse midwives and licensed traditional midwives shall 
107.8 	equal and shall not exceed the medical assistance payment rate to physicians for the 
107.9 	applicable service.
107.10 	(c) This section does not apply to mental health services or physician services billed 
107.11 	by a psychiatrist or an advanced practice registered nurse with a specialty in mental health.

107.12 	Sec. 37. Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 3, as 
107.13 	amended by Laws 2010, chapter 200, article 1, section 11, is amended to read:
107.14 		Subd. 3.General assistance medical care; eligibility. (a) Beginning April 1, 2010, 
107.15 	the general assistance medical care program shall be administered according to section 
107.16 	256D.031, unless otherwise stated, except for outpatient prescription drug coverage, 
107.17 	which shall continue to be administered under this section and funded under section 
107.18 	256D.031, subdivision 9, beginning June 1, 2010.
107.19 	(b) Outpatient prescription drug coverage under general assistance medical care is 
107.20 	limited to prescription drugs that:
107.21 	(1) are covered under the medical assistance program as described in section 
107.22 	256B.0625, subdivisions 13 and 13d; and
107.23 	(2) are provided by manufacturers that have fully executed general assistance 
107.24 	medical care rebate agreements with the commissioner and comply with the agreements. 
107.25 	Outpatient prescription drug coverage under general assistance medical care must conform 
107.26 	to coverage under the medical assistance program according to section 256B.0625, 
107.27 	subdivisions 13 to 13g 13h.
107.28 	(c) Outpatient prescription drug coverage does not include drugs administered in a 
107.29 	clinic or other outpatient setting.
107.30 	(d) For the period beginning April 1, 2010, to June 30, 2010, general assistance 
107.31 	medical care covers the services listed in subdivision 4.

107.32 	EFFECTIVE DATE. This section is effective retroactively from April 1, 2010.

107.33 	Sec. 38. Minnesota Statutes 2008, section 256D.03, subdivision 3b, is amended to read:
108.1 		Subd. 3b.Cooperation. (a) General assistance or general assistance medical care
108.2 	applicants and recipients must cooperate with the state and local agency to identify 
108.3 	potentially liable third-party payors and assist the state in obtaining third-party payments. 
108.4 	Cooperation includes identifying any third party who may be liable for care and services 
108.5 	provided under this chapter to the applicant, recipient, or any other family member for 
108.6 	whom application is made and providing relevant information to assist the state in pursuing 
108.7 	a potentially liable third party. General assistance medical care applicants and recipients 
108.8 	must cooperate by providing information about any group health plan in which they may 
108.9 	be eligible to enroll. They must cooperate with the state and local agency in determining 
108.10 	if the plan is cost-effective. For purposes of this subdivision, coverage provided by the 
108.11 	Minnesota Comprehensive Health Association under chapter 62E shall not be considered 
108.12 	group health plan coverage or cost-effective by the state and local agency. If the plan is 
108.13 	determined cost-effective and the premium will be paid by the state or local agency or is 
108.14 	available at no cost to the person, they must enroll or remain enrolled in the group health 
108.15 	plan. Cost-effective insurance premiums approved for payment by the state agency and 
108.16 	paid by the local agency are eligible for reimbursement according to subdivision 6.
108.17 	(b) Effective for all premiums due on or after June 30, 1997, general assistance 
108.18 	medical care does not cover premiums that a recipient is required to pay under a qualified 
108.19 	or Medicare supplement plan issued by the Minnesota Comprehensive Health Association. 
108.20 	General assistance medical care shall continue to cover premiums for recipients who are 
108.21 	covered under a plan issued by the Minnesota Comprehensive Health Association on June 
108.22 	30, 1997, for a period of six months following receipt of the notice of termination or 
108.23 	until December 31, 1997, whichever is later.

108.24 	EFFECTIVE DATE. This section is effective July 1, 2010.

108.25 	Sec. 39. Minnesota Statutes 2008, section 256D.031, subdivision 5, as added by Laws 
108.26 	2010, chapter 200, article 1, section 12, subdivision 5, is amended to read:
108.27 		Subd. 5.Payment rates and contract modification; April 1, 2010, to May 31
108.28 	June 30, 2010. (a) For the period April 1, 2010, to May 31 June 30, 2010, general 
108.29 	assistance medical care shall be paid on a fee-for-service basis. Fee-for-service payment 
108.30 	rates for services other than outpatient prescription drugs shall be set at 37 percent of the 
108.31 	payment rate in effect on March 31, 2010, except that for the period June 1, 2010, to June 
108.32 	30, 2010, fee-for-service payment rates for services other than prescription drugs shall be 
108.33 	set at 27 percent of the payment rate in effect on March 31, 2010.
109.1 	(b) Outpatient prescription drugs covered under section 256D.03, subdivision 
109.2 	3, provided on or after April 1, 2010, to May 31 June 30, 2010, shall be paid on a 
109.3 	fee-for-service basis according to section 256B.0625, subdivisions 13 to 13g.

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

109.5 	Sec. 40. Minnesota Statutes 2009 Supplement, section 256L.03, subdivision 5, is 
109.6 	amended to read:
109.7 		Subd. 5.Co-payments and coinsurance. (a) Except as provided in paragraphs (b) 
109.8 	and (c), the MinnesotaCare benefit plan shall include the following co-payments and 
109.9 	coinsurance requirements for all enrollees:
109.10 	(1) ten percent of the paid charges for inpatient hospital services for adult enrollees, 
109.11 	subject to an annual inpatient out-of-pocket maximum of $1,000 per individual;
109.12 	(2) $3 per prescription for adult enrollees;
109.13 	(3) $25 for eyeglasses for adult enrollees;
109.14 	(4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an 
109.15 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
109.16 	established illness, and which is delivered in an ambulatory setting by a physician or 
109.17 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
109.18 	audiologist, optician, or optometrist; and
109.19 	(5) $6 for nonemergency visits to a hospital-based emergency room for services 
109.20 	provided through December 31, 2010, and $3.50 effective January 1, 2011.
109.21 	(b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of 
109.22 	children under the age of 21.
109.23 	(c) Paragraph (a) does not apply to pregnant women and children under the age of 21.
109.24 	(d) Paragraph (a), clause (4), does not apply to mental health services.
109.25 	(e) Adult enrollees with family gross income that exceeds 200 percent of the federal 
109.26 	poverty guidelines or 215 percent of the federal poverty guidelines on or after July 1, 2009, 
109.27 	and who are not pregnant shall be financially responsible for the coinsurance amount, if 
109.28 	applicable, and amounts which exceed the $10,000 inpatient hospital benefit limit.
109.29 	(f) When a MinnesotaCare enrollee becomes a member of a prepaid health plan, 
109.30 	or changes from one prepaid health plan to another during a calendar year, any charges 
109.31 	submitted towards the $10,000 annual inpatient benefit limit, and any out-of-pocket 
109.32 	expenses incurred by the enrollee for inpatient services, that were submitted or incurred 
109.33 	prior to enrollment, or prior to the change in health plans, shall be disregarded.
110.1 	(g) MinnesotaCare reimbursements to fee-for-service providers and payments to 
110.2 	managed care plans or county-based purchasing plans shall not be increased as a result of 
110.3 	the reduction of the co-payments in paragraph (a), clause (5), effective January 1, 2011.

110.4 	EFFECTIVE DATE. This section is effective July 1, 2010.

110.5 	Sec. 41. Minnesota Statutes 2008, section 256L.11, subdivision 6, is amended to read:
110.6 		Subd. 6.Enrollees 18 or older. Payment by the MinnesotaCare program for 
110.7 	inpatient hospital services provided to MinnesotaCare enrollees eligible under section 
110.8 	256L.04, subdivision 7, or who qualify under section 256L.04, subdivisions 1 and 2, 
110.9 	with family gross income that exceeds 175 percent of the federal poverty guidelines 
110.10 	and who are not pregnant, who are 18 years old or older on the date of admission to the 
110.11 	inpatient hospital must be in accordance with paragraphs (a) and (b). Payment for adults 
110.12 	who are not pregnant and are eligible under section 256L.04, subdivisions 1 and 2, and 
110.13 	whose incomes are equal to or less than 175 percent of the federal poverty guidelines, 
110.14 	shall be as provided for under paragraph (c). 
110.15 	(a) If the medical assistance rate minus any co-payment required under section 
110.16 	256L.03, subdivision 4, is less than or equal to the amount remaining in the enrollee's 
110.17 	benefit limit under section 256L.03, subdivision 3, payment must be the medical 
110.18 	assistance rate minus any co-payment required under section 256L.03, subdivision 4. The 
110.19 	hospital must not seek payment from the enrollee in addition to the co-payment. The 
110.20 	MinnesotaCare payment plus the co-payment must be treated as payment in full. 
110.21 	(b) If the medical assistance rate minus any co-payment required under section 
110.22 	256L.03, subdivision 4, is greater than the amount remaining in the enrollee's benefit limit 
110.23 	under section 256L.03, subdivision 3, payment must be the lesser of: 
110.24 	(1) the amount remaining in the enrollee's benefit limit; or
110.25 	(2) charges submitted for the inpatient hospital services less any co-payment 
110.26 	established under section 256L.03, subdivision 4. 
110.27 	The hospital may seek payment from the enrollee for the amount by which usual and 
110.28 	customary charges exceed the payment under this paragraph. If payment is reduced under 
110.29 	section 256L.03, subdivision 3, paragraph (b), the hospital may not seek payment from the 
110.30 	enrollee for the amount of the reduction. 
110.31 	(c) For admissions occurring during the period of July 1, 1997, through June 30, 
110.32 	1998, for adults who are not pregnant and are eligible under section 256L.04, subdivisions 
110.33 	1 and 2, and whose incomes are equal to or less than 175 percent of the federal poverty 
110.34 	guidelines, the commissioner shall pay hospitals directly, up to the medical assistance 
110.35 	payment rate, for inpatient hospital benefits in excess of the $10,000 annual inpatient 
111.1 	benefit limit. For admissions occurring on or after July 1, 2011, for single adults and 
111.2 	households without children who are eligible under section 256L.04, subdivision 7, the 
111.3 	commissioner shall pay hospitals directly, up to the medical assistance payment rate, for 
111.4 	inpatient hospital benefits up to the $10,000 annual inpatient benefit limit, minus any 
111.5 	co-payment required under section 256L.03, subdivision 5.

111.6 	Sec. 42. Minnesota Statutes 2008, section 256L.07, is amended by adding a subdivision 
111.7 	to read:
111.8 		Subd. 9.Firefighters; volunteer ambulance attendants. (a) For purposes of this 
111.9 	subdivision, "qualified individual" means:
111.10 	(1) a volunteer firefighter with a department as defined in section 299N.01, 
111.11 	subdivision 2, who has passed the probationary period; and
111.12 	(2) a volunteer ambulance attendant as defined in section 144E.001, subdivision 15.
111.13 	(b) A qualified individual who documents to the satisfaction of the commissioner 
111.14 	status as a qualified individual by completing and submitting a one-page form developed 
111.15 	by the commissioner is eligible for MinnesotaCare without meeting other eligibility 
111.16 	requirements of this chapter, but must pay premiums equal to the average expected 
111.17 	capitation rate for adults with no children paid under section 256L.12. Individuals eligible 
111.18 	under this subdivision shall receive coverage for the benefit set provided to adults with no 
111.19 	children.

111.20 	EFFECTIVE DATE. This section is effective April 1, 2011.

111.21 	Sec. 43. Minnesota Statutes 2008, section 256L.12, subdivision 5, is amended to read:
111.22 		Subd. 5.Eligibility for other state programs. MinnesotaCare enrollees who 
111.23 	become eligible for medical assistance or general assistance medical care will remain in 
111.24 	the same managed care plan if the managed care plan has a contract for that population. 
111.25 	Effective January 1, 1998, MinnesotaCare enrollees who were formerly eligible for 
111.26 	general assistance medical care pursuant to section 256D.03, subdivision 3, within six 
111.27 	months of MinnesotaCare enrollment and were enrolled in a prepaid health plan pursuant 
111.28 	to section 256D.03, subdivision 4, paragraph (c), must remain in the same managed care 
111.29 	plan if the managed care plan has a contract for that population. Managed care plans must 
111.30 	participate in the MinnesotaCare and general assistance medical care programsprogram 
111.31 	under a contract with the Department of Human Services in service areas where they 
111.32 	participate in the medical assistance program.  

111.33 	EFFECTIVE DATE. This section is effective retroactively from April 1, 2010.

112.1 	Sec. 44. Minnesota Statutes 2008, section 256L.12, subdivision 9, is amended to read:
112.2 		Subd. 9.Rate setting; performance withholds. (a) Rates will be prospective, 
112.3 	per capita, where possible. The commissioner may allow health plans to arrange for 
112.4 	inpatient hospital services on a risk or nonrisk basis. The commissioner shall consult with 
112.5 	an independent actuary to determine appropriate rates.
112.6 	(b) For services rendered on or after January 1, 2003, to December 31, 2003, the 
112.7 	commissioner shall withhold .5 percent of managed care plan payments under this section 
112.8 	pending completion of performance targets. The withheld funds must be returned no 
112.9 	sooner than July 1 and no later than July 31 of the following year if performance targets 
112.10 	in the contract are achieved. A managed care plan may include as admitted assets under 
112.11 	section 62D.044 any amount withheld under this paragraph that is reasonably expected 
112.12 	to be returned. 
112.13 	(c) For services rendered on or after January 1, 2004, the commissioner shall 
112.14 	withhold five percent of managed care plan payments and county-based purchasing 
112.15 	plan payments under this section pending completion of performance targets. Each 
112.16 	performance target must be quantifiable, objective, measurable, and reasonably attainable, 
112.17 	except in the case of a performance target based on a federal or state law or rule. Criteria 
112.18 	for assessment of each performance target must be outlined in writing prior to the 
112.19 	contract effective date. The managed care plan must demonstrate, to the commissioner's 
112.20 	satisfaction, that the data submitted regarding attainment of the performance target is 
112.21 	accurate. The commissioner shall periodically change the administrative measures used 
112.22 	as performance targets in order to improve plan performance across a broader range of 
112.23 	administrative services. The performance targets must include measurement of plan 
112.24 	efforts to contain spending on health care services and administrative activities. The 
112.25 	commissioner may adopt plan-specific performance targets that take into account factors 
112.26 	affecting only one plan, such as characteristics of the plan's enrollee population. The 
112.27 	withheld funds must be returned no sooner than July 1 and no later than July 31 of the 
112.28 	following calendar year if performance targets in the contract are achieved. A managed 
112.29 	care plan or a county-based purchasing plan under section 256B.692 may include as 
112.30 	admitted assets under section 62D.044 any amount withheld under this paragraph that is 
112.31 	reasonably expected to be returned.
112.32 	(c) For services rendered on or after January 1, 2011, the commissioner shall 
112.33 	withhold an additional three percent of managed care plan or county-based purchasing 
112.34 	plan payments under this section. The withheld funds must be returned no sooner than 
112.35 	July 1 and no later than July 31 of the following calendar year. The return of the withhold 
112.36 	under this paragraph is not subject to the requirements of paragraph (b).
113.1 	(d) Effective for services rendered on or after January 1, 2011, the commissioner 
113.2 	shall include as part of the performance targets described in paragraph (b) a reduction in 
113.3 	the plan's emergency room utilization rate for state health care program enrollees by a 
113.4 	measurable rate of five percent from the plan's utilization rate for the previous calendar 
113.5 	year.
113.6 	The withheld funds must be returned no sooner than July 1 and no later than July 31 
113.7 	of the following calendar year if the managed care plan demonstrates to the satisfaction of 
113.8 	the commissioner that a reduction in the utilization rate was achieved.
113.9 	The withhold described in this paragraph shall continue for each consecutive 
113.10 	contract period until the plan's emergency room utilization rate for state health care 
113.11 	program enrollees is reduced by 25 percent of the plan's emergency room utilization rate 
113.12 	for state health care program enrollees for calendar year 2009. Hospitals shall cooperate 
113.13 	with the health plans in meeting this performance target and shall accept payment 
113.14 	withholds that may be returned to the hospitals if the performance target is achieved. The 
113.15 	commissioner shall structure the withhold so that the commissioner returns a portion of 
113.16 	the withheld funds in amounts commensurate with achieved reductions in utilization less 
113.17 	than the targeted amount. The withhold described in this paragraph does not apply to 
113.18 	county-based purchasing plans.
113.19 	(e) A managed care plan or a county-based purchasing plan under section 256B.692 
113.20 	may include as admitted assets under section 62D.044 any amount withheld under this 
113.21 	section that is reasonably expected to be returned.

113.22 	EFFECTIVE DATE. This section is effective July 1, 2010.

113.23 	Sec. 45. Minnesota Statutes 2008, section 256L.12, is amended by adding a subdivision 
113.24 	to read:
113.25 		Subd. 9c.Rate setting; increase effective October 1, 2010. For services 
113.26 	rendered on or after October 1, 2010, the total payment made to managed care plans and 
113.27 	county-based purchasing plans under MinnesotaCare for families with children shall be 
113.28 	increased by 0.88 percent.

113.29 	EFFECTIVE DATE. This section is effective July 1, 2010.

113.30 	Sec. 46. Laws 2009, chapter 79, article 5, section 75, subdivision 1, is amended to read:
113.31 		Subdivision 1.Medical assistance coverage. The commissioner of human services 
113.32 	shall establish a demonstration project to provide additional medical assistance coverage 
113.33 	for a maximum of 200 American Indian children in Minneapolis, St. Paul, and Duluth 
114.1 	who are burdened by health disparities associated with the cumulative health impact 
114.2 	of toxic environmental exposures. Under this demonstration project, the additional 
114.3 	medical assistance coverage for this population must include, but is not limited to, home 
114.4 	environmental assessments for triggers of asthma, and in-home asthma education on the 
114.5 	proper medical management of asthma by a certified asthma educator or public health 
114.6 	nurse with asthma management training, and must be limited to two visits per child. The 
114.7 	home visit payment rates must be based on a rate commensurate with a first-time visit rate 
114.8 	and follow-up visit rate. Coverage also includes the following durable medical equipment: 
114.9 	high efficiency particulate air (HEPA) cleaners, HEPA vacuum cleaners, allergy bed and 
114.10 	pillow encasements, high filtration filters for forced air gas furnaces, and dehumidifiers 
114.11 	with medical tubing to connect the appliance to a floor drain, if the listed item is medically 
114.12 	necessaryuseful to reduce asthma symptoms. Provision of these items of durable medical 
114.13 	equipment must be preceded by a home environmental assessment for triggers of asthma 
114.14 	and in-home asthma education on the proper medical management of asthma by a Certified 
114.15 	Asthma Educator or public health nurse with asthma management training.

114.16 	Sec. 47. Laws 2009, chapter 79, article 5, section 78, subdivision 5, is amended to read:
114.17 		Subd. 5.Expiration. This section, with the exception of subdivision 4, expires 
114.18 	December 31, 2010 August 31, 2011. Subdivision 4 expires February 28, 2012.

114.19 	Sec. 48. Laws 2010, chapter 200, article 1, section 16, is amended by adding an 
114.20 	effective date to read:

114.21 	EFFECTIVE DATE. This section is effective June 1, 2010.

114.22 	Sec. 49. Laws 2010, chapter 200, article 1, section 21, is amended to read:
114.23 	Sec. 21. REPEALER.
 114.24 	(a) Minnesota Statutes 2008, sections 256.742; 256.979, subdivision 8; and 256D.03, 
114.25 	subdivision 9, are repealed effective April 1, 2010.
114.26 	(b) Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 4, is repealed 
114.27 	effective April July  1, 2010.
114.28 	(c) Minnesota Statutes 2008, section 256B.195, subdivisions 4 and 5, are repealed 
114.29 	effective for federal fiscal year 2010.
114.30 	(d) Minnesota Statutes 2009 Supplement, section 256B.195, subdivisions 1, 2, and 
114.31 	3, are repealed effective for federal fiscal year 2010.
114.32 	(e) Minnesota Statutes 2008, sections 256L.07, subdivision 6; 256L.15, subdivision 
114.33 	4; and 256L.17, subdivision 7, are repealed January 1, 2011 July 1, 2010.

115.1 	EFFECTIVE DATE. This section is effective retroactively from April 1, 2010.

115.2 	Sec. 50. Laws 2010, chapter 200, article 2, section 2, subdivision 1, is amended to read:

115.3	Subdivision 1.Total Appropriation
 	$
	(7,985,000)
	$
	(93,128,000)

115.4	Appropriations by Fund
	
115.5		2010
	2011
	
115.6	General
	34,807,000
	118,493,000
	
115.7	Health Care Access
	(42,792,000)
	(211,621,000)
	
115.8 	The amounts that may be spent for each 
115.9 	purpose are specified in the following 
115.10 	subdivisions.
115.11 	Special Revenue Fund Transfers.
115.12 	(a) The commissioner shall transfer the 
115.13 	following amounts from special revenue 
115.14 	fund balances to the general fund by June 
115.15 	30 of each respective fiscal year: $410,000 
115.16 	for fiscal year 2010, and $412,000 for fiscal 
115.17 	year 2011.
115.18 	(b) Actual transfers made under paragraph 
115.19 	(a) must be separately identified and reported 
115.20 	as part of the quarterly reporting of transfers 
115.21 	to the chairs of the relevant senate budget 
115.22 	division and house of representatives finance 
115.23 	division.

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

115.25 	Sec. 51. Laws 2010, chapter 200, article 2, section 2, subdivision 5, is amended to read:

115.26	Subd. 5.Health Care Management
 					
115.27 	The amounts that may be spent from the 
115.28 	appropriation for each purpose are as follows:

115.29	Health Care Administration.
		(2,998,000)
		(5,270,000)
	
115.30 	Base Adjustment. The general fund base 
115.31 	for health care administration is reduced by 
116.1 	$182,000 $36,000  in fiscal year 2012 and 
116.2 	$182,000 $36,000  in fiscal year 2013.

116.3 	Sec. 52. Laws 2010, chapter 200, article 2, section 2, subdivision 8, is amended to read:

116.4	Subd. 8.Transfers
 					
116.5 	The commissioner must transfer $29,538,000 
116.6 	in fiscal year 2010 and $18,462,000 in fiscal 
116.7 	year 2011 from the health care access fund to 
116.8 	the general fund. This is a onetime transfer.
116.9 	The commissioner must transfer $4,800,000 
116.10 	from the consolidated chemical dependency 
116.11 	treatment fund to the general fund by June 
116.12 	30, 2010.
116.13 	Compulsive Gambling Special Revenue
116.14 	Administration.The lottery prize fund 
116.15 	appropriation for compulsive gambling 
116.16 	administration is reduced by $6,000 for fiscal 
116.17 	year 2010 and $4,000 for fiscal year 2011
116.18 	must be transferred from the lottery prize 
116.19 	fund appropriation for compulsive gambling 
116.20 	administration to the general fund by June 
116.21 	30 of each respective fiscal year. These are 
116.22 	onetime reductions.

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

116.24 	Sec. 53. PREPAID HEALTH PLAN RATES.
 116.25 	In negotiating the prepaid health plan contract rates for services rendered on or 
116.26 	after January 1, 2011, the commissioner of human services shall take into consideration 
116.27 	and the rates shall reflect the anticipated savings in the medical assistance program due 
116.28 	to extending medical assistance coverage to services provided in licensed birth centers, 
116.29 	the anticipated use of these services within the medical assistance population, and the 
116.30 	reduced medical assistance costs associated with the use of birth centers for normal, 
116.31 	low-risk deliveries.

116.32 	EFFECTIVE DATE. This section is effective July 1, 2010.

117.1 	Sec. 54. STATE PLAN AMENDMENT; FEDERAL APPROVAL.
 117.2 	The commissioner of human services shall submit a Medicaid state plan amendment 
117.3 	to receive federal fund participation for adults without children whose income is equal 
117.4 	to or less than 75 percent of federal poverty guidelines in accordance with the Patient 
117.5 	Protection and Affordable Care Act, Public Law 111-148, or the Health Care and 
117.6 	Education Reconciliation Act of 2010, Public Law 111-152. The effective date of the 
117.7 	state plan amendment shall be June 1, 2010.

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

117.9 	Sec. 55. UPPER PAYMENT LIMIT REPORT.
 117.10 	Each January 15, beginning in 2011, the commissioner of human services shall 
117.11 	report the following information to the chairs of the house of representatives and senate 
117.12 	finance committees and divisions with responsibility for human services appropriations:
117.13 	(1) the estimated room within the Medicare hospital upper payment limit for the 
117.14 	federal year beginning on October 1 of the year the report is made;
117.15 	(2) the amount of a rate increase under Minnesota Statutes, section 256.969, 
117.16 	subdivision 3a, paragraph (i), that would increase medical assistance hospital spending 
117.17 	to the upper payment limit; and
117.18 	(3) the amount of a surcharge increase under Minnesota Statutes, section 256.9657, 
117.19 	subdivision 2, needed to generate the state share of the potential rate increase under 
117.20 	clause (2).

117.21 	EFFECTIVE DATE. This section is effective July 1, 2010.

117.22 	Sec. 56. REVISOR'S INSTRUCTION.
 117.23 	The revisor of statutes shall edit Minnesota Statutes and Minnesota Rules to remove 
117.24 	references to the general assistance medical care program and references to Minnesota 
117.25 	Statutes, section 256D.03, subdivision 3, or Minnesota Statutes, chapter 256D, as it 
117.26 	pertains to general assistance medical care and make other changes as may be necessary 
117.27 	to remove references to the general assistance medical care program. The revisor may 
117.28 	consult with the Department of Human Services when making editing decisions on the 
117.29 	removal of these references.

117.30 	Sec. 57.  REPEALER.
 117.31 	(a) Minnesota Statutes 2008, section 256D.03, subdivisions 3, 3a, 5, 6, 7, and 8,
117.32 	are repealed July 1, 2010.
118.1 	(b) Laws 2010, chapter 200, article 1, sections 12, subdivisions 1, 2, 3, and 5; 18; 
118.2 	and 19, are repealed July 1, 2010.
118.3 	(c) Laws 2010, chapter 200, article 1, section 12, subdivisions 4, 6, 7, 8, 9, and 10, 
118.4 	are repealed the day following final enactment.

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

118.6 	ARTICLE 17
118.7 	CONTINUING CARE

118.8 	Section 1. Minnesota Statutes 2008, section 144D.03, subdivision 2, is amended to 
118.9 	read:
118.10 		Subd. 2.Registration information. The establishment shall provide the following 
118.11 	information to the commissioner in order to be registered:
118.12 	(1) the business name, street address, and mailing address of the establishment;
118.13 	(2) the name and mailing address of the owner or owners of the establishment and, if 
118.14 	the owner or owners are not natural persons, identification of the type of business entity 
118.15 	of the owner or owners, and the names and addresses of the officers and members of the 
118.16 	governing body, or comparable persons for partnerships, limited liability corporations, or 
118.17 	other types of business organizations of the owner or owners;
118.18 	(3) the name and mailing address of the managing agent, whether through 
118.19 	management agreement or lease agreement, of the establishment, if different from the 
118.20 	owner or owners, and the name of the on-site manager, if any;
118.21 	(4) verification that the establishment has entered into  a housing with services 
118.22 	contract, as required in section  144D.04, with each resident or resident's representative; 
118.23 	(5) verification that the establishment is complying with the requirements of section 
118.24 	325F.72, if applicable; 
118.25 	(6) the name and address of at least one natural person who shall be responsible 
118.26 	for dealing with the commissioner on all matters provided for in sections  144D.01 to  
118.27 	144D.06, and on whom personal service of all notices and orders shall be made, and who 
118.28 	shall be authorized to accept service on behalf of the owner or owners and the managing 
118.29 	agent, if any; and
118.30 	(7) the signature of the authorized representative of the owner or owners or, if 
118.31 	the owner or owners are not natural persons, signatures of at least two authorized 
118.32 	representatives of each owner, one of which shall be an officer of the owner; and
118.33 	(8) whether services are included in the base rate to be paid by the resident.
119.1 	Personal service on the person identified under clause (6) by the owner or owners in 
119.2 	the registration shall be considered service on the owner or owners, and it shall not be a 
119.3 	defense to any action that personal service was not made on each individual or entity. The 
119.4 	designation of one or more individuals under this subdivision shall not affect the legal 
119.5 	responsibility of the owner or owners under sections  144D.01 to  144D.06. 

119.6 	Sec. 2. Minnesota Statutes 2008, section 144D.04, subdivision 2, is amended to read:
119.7 		Subd. 2.Contents of contract.  A housing with services contract, which need not be 
119.8 	entitled as such to comply with this section, shall include at least the following elements 
119.9 	in itself or through supporting documents or attachments:
119.10 	(1) the name, street address, and mailing address of the establishment;
119.11 	(2) the name and mailing address of the owner or owners of the establishment and, if 
119.12 	the owner or owners is not a natural person, identification of the type of business entity 
119.13 	of the owner or owners;
119.14 	(3) the name and mailing address of the managing agent, through management 
119.15 	agreement or lease agreement, of the establishment, if different from the owner or owners;
119.16 	(4) the name and address of at least one natural person who is authorized to accept 
119.17 	service of process on behalf of the owner or owners and managing agent;
119.18 	(5) a statement describing the registration and licensure status of the establishment 
119.19 	and any provider providing health-related or supportive services under an arrangement 
119.20 	with the establishment;
119.21 	(6) the term of the contract;
119.22 	(7) a description of the services to be provided to the resident in the base rate to be 
119.23 	paid by resident, including a delineation of the portion of the base rate that constitutes rent 
119.24 	and a delineation of charges for each service included in the base rate;
119.25 	(8) a description of any additional services, including home care services, available 
119.26 	for an additional fee from the establishment directly or through arrangements with the 
119.27 	establishment, and a schedule of fees charged for these services;
119.28 	(9) a description of the process through which the contract may be modified, 
119.29 	amended, or terminated;
119.30 	(10) a description of the establishment's complaint resolution process available 
119.31 	to residents including the toll-free complaint line for the Office of Ombudsman for 
119.32 	Long-Term Care;
119.33 	(11) the resident's designated representative, if any;
119.34 	(12) the establishment's referral procedures if the contract is terminated;
120.1 	(13) requirements of residency used by the establishment to determine who may 
120.2 	reside or continue to reside in the  housing with services establishment;
120.3 	(14) billing and payment procedures and requirements;
120.4 	(15) a statement regarding the ability of residents to receive services from service 
120.5 	providers with whom the establishment does not have an arrangement; 
120.6 	(16) a statement regarding the availability of public funds for payment for residence 
120.7 	or services in the establishment; and
120.8 	(17) a statement regarding the availability of and contact information for 
120.9 	long-term care consultation services under section 256B.0911 in the county in which the 
120.10 	establishment is located.

120.11 	Sec. 3. [144D.08] UNIFORM CONSUMER INFORMATION GUIDE.
120.12 	All housing with services establishments shall make available to all prospective 
120.13 	and current residents information consistent with the uniform format and the required 
120.14 	components adopted by the commissioner under section 144G.06.

120.15 	Sec. 4. [144D.09] TERMINATION OF LEASE.
120.16 	The housing with services establishment shall include with notice of termination 
120.17 	of lease information about how to contact the ombudsman for long-term care, including 
120.18 	the address and phone number along with a statement of how to request problem-solving 
120.19 	assistance.

120.20 	Sec. 5. Minnesota Statutes 2008, section 144G.06, is amended to read:
120.21 	144G.06 UNIFORM CONSUMER INFORMATION GUIDE.
120.22 	(a) The commissioner of health shall establish an advisory committee consisting 
120.23 	of representatives of consumers, providers, county and state officials, and other 
120.24 	groups the commissioner considers appropriate. The advisory committee shall present 
120.25 	recommendations to the commissioner on:
120.26 	(1) a format for a guide to be used by individual providers of assisted living, as 
120.27 	defined in section 144G.01, that includes information about services offered by that 
120.28 	provider, which services may be covered by Medicare, service costs, and other relevant 
120.29 	provider-specific information, as well as a statement of philosophy and values associated 
120.30 	with assisted living, presented in uniform categories that facilitate comparison with guides 
120.31 	issued by other providers; and
120.32 	(2) requirements for informing assisted living clients, as defined in section 144G.01, 
120.33 	of their applicable legal rights.
121.1 	(b) The commissioner, after reviewing the recommendations of the advisory 
121.2 	committee, shall adopt a uniform format for the guide to be used by individual providers, 
121.3 	and the required components of materials to be used by providers to inform assisted 
121.4 	living clients of their legal rights, and shall make the uniform format and the required 
121.5 	components available to assisted living providers.

121.6 	Sec. 6. Minnesota Statutes 2009 Supplement, section 252.27, subdivision 2a, is 
121.7 	amended to read:
121.8 		Subd. 2a.Contribution amount. (a) The natural or adoptive parents of a minor 
121.9 	child, including a child determined eligible for medical assistance without consideration of 
121.10 	parental income, must contribute to the cost of services used by making monthly payments 
121.11 	on a sliding scale based on income, unless the child is married or has been married, 
121.12 	parental rights have been terminated, or the child's adoption is subsidized according to 
121.13 	section 259.67 or through title IV-E of the Social Security Act. The parental contribution 
121.14 	is a partial or full payment for medical services provided for diagnostic, therapeutic, 
121.15 	curing, treating, mitigating, rehabilitation, maintenance, and personal care services as 
121.16 	defined in United States Code, title 26, section 213, needed by the child with a chronic 
121.17 	illness or disability.
121.18 	(b) For households with adjusted gross income equal to or greater than 100 percent 
121.19 	of federal poverty guidelines, the parental contribution shall be computed by applying the 
121.20 	following schedule of rates to the adjusted gross income of the natural or adoptive parents:
121.21 	(1) if the adjusted gross income is equal to or greater than 100 percent of federal 
121.22 	poverty guidelines and less than 175 percent of federal poverty guidelines, the parental 
121.23 	contribution is $4 per month;
121.24 	(2) if the adjusted gross income is equal to or greater than 175 percent of federal 
121.25 	poverty guidelines and less than or equal to 545 percent of federal poverty guidelines, 
121.26 	the parental contribution shall be determined using a sliding fee scale established by the 
121.27 	commissioner of human services which begins at one percent of adjusted gross income 
121.28 	at 175 percent of federal poverty guidelines and increases to 7.5 percent of adjusted 
121.29 	gross income for those with adjusted gross income up to 545 percent of federal poverty 
121.30 	guidelines;
121.31 	(3) if the adjusted gross income is greater than 545 percent of federal poverty 
121.32 	guidelines and less than 675 percent of federal poverty guidelines, the parental 
121.33 	contribution shall be 7.5 percent of adjusted gross income;
121.34 	(4) if the adjusted gross income is equal to or greater than 675 percent of federal 
121.35 	poverty guidelines and less than 975 percent of federal poverty guidelines, the parental 
122.1 	contribution shall be determined using a sliding fee scale established by the commissioner 
122.2 	of human services which begins at 7.5 percent of adjusted gross income at 675 percent of 
122.3 	federal poverty guidelines and increases to ten percent of adjusted gross income for those 
122.4 	with adjusted gross income up to 975 percent of federal poverty guidelines; and
122.5 	(5) if the adjusted gross income is equal to or greater than 975 percent of federal 
122.6 	poverty guidelines, the parental contribution shall be 12.5 percent of adjusted gross 
122.7 	income.
122.8 	If the child lives with the parent, the annual adjusted gross income is reduced by 
122.9 	$2,400 prior to calculating the parental contribution. If the child resides in an institution 
122.10 	specified in section 256B.35, the parent is responsible for the personal needs allowance 
122.11 	specified under that section in addition to the parental contribution determined under this 
122.12 	section. The parental contribution is reduced by any amount required to be paid directly to 
122.13 	the child pursuant to a court order, but only if actually paid.
122.14 	(c) The household size to be used in determining the amount of contribution under 
122.15 	paragraph (b) includes natural and adoptive parents and their dependents, including the 
122.16 	child receiving services. Adjustments in the contribution amount due to annual changes 
122.17 	in the federal poverty guidelines shall be implemented on the first day of July following 
122.18 	publication of the changes.
122.19 	(d) For purposes of paragraph (b), "income" means the adjusted gross income of the 
122.20 	natural or adoptive parents determined according to the previous year's federal tax form, 
122.21 	except, effective retroactive to July 1, 2003, taxable capital gains to the extent the funds 
122.22 	have been used to purchase a home shall not be counted as income.
122.23 	(e) The contribution shall be explained in writing to the parents at the time eligibility 
122.24 	for services is being determined. The contribution shall be made on a monthly basis 
122.25 	effective with the first month in which the child receives services. Annually upon 
122.26 	redetermination or at termination of eligibility, if the contribution exceeded the cost of 
122.27 	services provided, the local agency or the state shall reimburse that excess amount to 
122.28 	the parents, either by direct reimbursement if the parent is no longer required to pay a 
122.29 	contribution, or by a reduction in or waiver of parental fees until the excess amount is 
122.30 	exhausted. All reimbursements must include a notice that the amount reimbursed may be 
122.31 	taxable income if the parent paid for the parent's fees through an employer's health care 
122.32 	flexible spending account under the Internal Revenue Code, section 125, and that the 
122.33 	parent is responsible for paying the taxes owed on the amount reimbursed.
122.34 	(f) The monthly contribution amount must be reviewed at least every 12 months; 
122.35 	when there is a change in household size; and when there is a loss of or gain in income 
122.36 	from one month to another in excess of ten percent. The local agency shall mail a written 
123.1 	notice 30 days in advance of the effective date of a change in the contribution amount. 
123.2 	A decrease in the contribution amount is effective in the month that the parent verifies a 
123.3 	reduction in income or change in household size.
123.4 	(g) Parents of a minor child who do not live with each other shall each pay the 
123.5 	contribution required under paragraph (a). An amount equal to the annual court-ordered 
123.6 	child support payment actually paid on behalf of the child receiving services shall be 
123.7 	deducted from the adjusted gross income of the parent making the payment prior to 
123.8 	calculating the parental contribution under paragraph (b).
123.9 	(h) The contribution under paragraph (b) shall be increased by an additional five 
123.10 	percent if the local agency determines that insurance coverage is available but not 
123.11 	obtained for the child. For purposes of this section, "available" means the insurance is a 
123.12 	benefit of employment for a family member at an annual cost of no more than five percent 
123.13 	of the family's annual income. For purposes of this section, "insurance" means health 
123.14 	and accident insurance coverage, enrollment in a nonprofit health service plan, health 
123.15 	maintenance organization, self-insured plan, or preferred provider organization.
123.16 	Parents who have more than one child receiving services shall not be required 
123.17 	to pay more than the amount for the child with the highest expenditures. There shall 
123.18 	be no resource contribution from the parents. The parent shall not be required to pay 
123.19 	a contribution in excess of the cost of the services provided to the child, not counting 
123.20 	payments made to school districts for education-related services. Notice of an increase in 
123.21 	fee payment must be given at least 30 days before the increased fee is due.
123.22 	(i) The contribution under paragraph (b) shall be reduced by $300 per fiscal year if, 
123.23 	in the 12 months prior to July 1:
123.24 	(1) the parent applied for insurance for the child;
123.25 	(2) the insurer denied insurance;
123.26 	(3) the parents submitted a complaint or appeal, in writing to the insurer, submitted 
123.27 	a complaint or appeal, in writing, to the commissioner of health or the commissioner of 
123.28 	commerce, or litigated the complaint or appeal; and
123.29 	(4) as a result of the dispute, the insurer reversed its decision and granted insurance.
123.30 	For purposes of this section, "insurance" has the meaning given in paragraph (h).
123.31 	A parent who has requested a reduction in the contribution amount under this 
123.32 	paragraph shall submit proof in the form and manner prescribed by the commissioner or 
123.33 	county agency, including, but not limited to, the insurer's denial of insurance, the written 
123.34 	letter or complaint of the parents, court documents, and the written response of the insurer 
123.35 	approving insurance. The determinations of the commissioner or county agency under this 
123.36 	paragraph are not rules subject to chapter 14.
124.1 	(j) Notwithstanding paragraph (b), for the period from July 1, 2010, to June 30, 
124.2 	2013, the parental contribution shall be computed by applying the following contribution 
124.3 	schedule to the adjusted gross income of the natural or adoptive parents:
124.4 	(1) if the adjusted gross income is equal to or greater than 100 percent of federal 
124.5 	poverty guidelines and less than 175 percent of federal poverty guidelines, the parental 
124.6 	contribution is $4 per month;
124.7 	(2) if the adjusted gross income is equal to or greater than 175 percent of federal 
124.8 	poverty guidelines and less than or equal to 525 percent of federal poverty guidelines, 
124.9 	the parental contribution shall be determined using a sliding fee scale established by the 
124.10 	commissioner of human services which begins at one percent of adjusted gross income 
124.11 	at 175 percent of federal poverty guidelines and increases to eight percent of adjusted 
124.12 	gross income for those with adjusted gross income up to 525 percent of federal poverty 
124.13 	guidelines;
124.14 	(3) if the adjusted gross income is greater than 525 percent of federal poverty 
124.15 	guidelines and less than 675 percent of federal poverty guidelines, the parental contribution 
124.16 	shall be 9.5 percent of adjusted gross income;
124.17 	(4) if the adjusted gross income is equal to or greater than 675 percent of federal 
124.18 	poverty guidelines and less than 900 percent of federal poverty guidelines, the parental 
124.19 	contribution shall be determined using a sliding fee scale established by the commissioner 
124.20 	of human services which begins at 9.5 percent of adjusted gross income at 675 percent of 
124.21 	federal poverty guidelines and increases to 12 percent of adjusted gross income for those 
124.22 	with adjusted gross income up to 900 percent of federal poverty guidelines; and
124.23 	(5) if the adjusted gross income is equal to or greater than 900 percent of federal 
124.24 	poverty guidelines, the parental contribution shall be 13.5 percent of adjusted gross 
124.25 	income. If the child lives with the parent, the annual adjusted gross income is reduced by 
124.26 	$2,400 prior to calculating the parental contribution. If the child resides in an institution 
124.27 	specified in section 256B.35, the parent is responsible for the personal needs allowance 
124.28 	specified under that section in addition to the parental contribution determined under this 
124.29 	section. The parental contribution is reduced by any amount required to be paid directly to 
124.30 	the child pursuant to a court order, but only if actually paid.

124.31 	Sec. 7. [256.4825] REPORT REGARDING PROGRAMS AND SERVICES FOR 
124.32 	PEOPLE WITH DISABILITIES.
124.33 	The Minnesota State Council on Disability, the Minnesota Consortium for Citizens 
124.34 	with Disabilities, and the Arc of Minnesota may submit an annual report by January 15 of 
124.35 	each year, beginning in 2012, to the chairs and ranking minority members of the legislative 
125.1 	committees with jurisdiction over programs serving people with disabilities as provided in 
125.2 	this section. The report must describe the existing state policies and goals for programs 
125.3 	serving people with disabilities including, but not limited to, programs for employment, 
125.4 	transportation, housing, education, quality assurance, consumer direction, physical and 
125.5 	programmatic access, and health. The report must provide data and measurements to 
125.6 	assess the extent to which the policies and goals are being met. The commissioner of 
125.7 	human services and the commissioners of other state agencies administering programs for 
125.8 	people with disabilities shall cooperate with the Minnesota State Council on Disability, 
125.9 	the Minnesota Consortium for Citizens with Disabilities, and the Arc of Minnesota and 
125.10 	provide those organizations with existing published information and reports that will assist 
125.11 	in the preparation of the report.

125.12 	Sec. 8. Minnesota Statutes 2008, section 256.9657, subdivision 3a, is amended to read:
125.13 		Subd. 3a.ICF/MR license surcharge. (a) Effective July 1, 2003, each 
125.14 	non-state-operated facility as defined under section 256B.501, subdivision 1, shall pay 
125.15 	to the commissioner an annual surcharge according to the schedule in subdivision 4, 
125.16 	paragraph (d). The annual surcharge shall be $1,040 per licensed bed. If the number of 
125.17 	licensed beds is reduced, the surcharge shall be based on the number of remaining licensed 
125.18 	beds the second month following the receipt of timely notice by the commissioner of 
125.19 	human services that beds have been delicensed. The facility must notify the commissioner 
125.20 	of health in writing when beds are delicensed. The commissioner of health must notify 
125.21 	the commissioner of human services within ten working days after receiving written 
125.22 	notification. If the notification is received by the commissioner of human services by 
125.23 	the 15th of the month, the invoice for the second following month must be reduced to 
125.24 	recognize the delicensing of beds. The commissioner may reduce, and may subsequently 
125.25 	restore, the surcharge under this subdivision based on the commissioner's determination of 
125.26 	a permissible surcharge. 
125.27 	(b) Effective July 1, 2010, the surcharge under paragraph (a) is increased to $4,037 
125.28 	per licensed bed.

125.29 	Sec. 9. Minnesota Statutes 2009 Supplement, section 256.975, subdivision 7, is 
125.30 	amended to read:
125.31 		Subd. 7.Consumer information and assistance and long-term care options 
125.32 	counseling; Senior LinkAge Line. (a) The Minnesota Board on Aging shall operate a 
125.33 	statewide service to aid older Minnesotans and their families in making informed choices 
125.34 	about long-term care options and health care benefits. Language services to persons with 
126.1 	limited English language skills may be made available. The service, known as Senior 
126.2 	LinkAge Line, must be available during business hours through a statewide toll-free 
126.3 	number and must also be available through the Internet.
126.4 	(b) The service must provide long-term care options counseling by assisting older 
126.5 	adults, caregivers, and providers in accessing information and options counseling about 
126.6 	choices in long-term care services that are purchased through private providers or available 
126.7 	through public options. The service must:
126.8 	(1) develop a comprehensive database that includes detailed listings in both 
126.9 	consumer- and provider-oriented formats;
126.10 	(2) make the database accessible on the Internet and through other telecommunication 
126.11 	and media-related tools;
126.12 	(3) link callers to interactive long-term care screening tools and make these tools 
126.13 	available through the Internet by integrating the tools with the database;
126.14 	(4) develop community education materials with a focus on planning for long-term 
126.15 	care and evaluating independent living, housing, and service options;
126.16 	(5) conduct an outreach campaign to assist older adults and their caregivers in 
126.17 	finding information on the Internet and through other means of communication;
126.18 	(6) implement a messaging system for overflow callers and respond to these callers 
126.19 	by the next business day;
126.20 	(7) link callers with county human services and other providers to receive more 
126.21 	in-depth assistance and consultation related to long-term care options;
126.22 	(8) link callers with quality profiles for nursing facilities and other providers 
126.23 	developed by the commissioner of health;
126.24 	(9) incorporate information about the availability of housing options, as well as 
126.25 	registered housing with services and consumer rights within the MinnesotaHelp.info 
126.26 	network long-term care database to facilitate consumer comparison of services and costs 
126.27 	among housing with services establishments and with other in-home services and to 
126.28 	support financial self-sufficiency as long as possible. Housing with services establishments 
126.29 	and their arranged home care providers shall provide information to the commissioner of 
126.30 	human services that is consistent with information required by the commissioner of health 
126.31 	under section 144G.06, the Uniform Consumer Information Guide that will facilitate price 
126.32 	comparisons, including delineation of charges for rent and for services available. The 
126.33 	commissioners of health and human services shall align the data elements required by 
126.34 	section 144G.06, the Uniform Consumer Information Guide, and this section to provide 
126.35 	consumers standardized information and ease of comparison of long-term care options. 
127.1 	The commissioner of human services shall provide the data to the Minnesota Board on 
127.2 	Aging for inclusion in the MinnesotaHelp.info network long-term care database;
127.3 	(10) provide long-term care options counseling. Long-term care options counselors 
127.4 	shall:
127.5 	(i) for individuals not eligible for case management under a public program or public 
127.6 	funding source, provide interactive decision support under which consumers, family 
127.7 	members, or other helpers are supported in their deliberations to determine appropriate 
127.8 	long-term care choices in the context of the consumer's needs, preferences, values, and 
127.9 	individual circumstances, including implementing a community support plan;
127.10 	(ii) provide Web-based educational information and collateral written materials to 
127.11 	familiarize consumers, family members, or other helpers with the long-term care basics, 
127.12 	issues to be considered, and the range of options available in the community;
127.13 	(iii) provide long-term care futures planning, which means providing assistance to 
127.14 	individuals who anticipate having long-term care needs to develop a plan for the more 
127.15 	distant future; and
127.16 	(iv) provide expertise in benefits and financing options for long-term care, including 
127.17 	Medicare, long-term care insurance, tax or employer-based incentives, reverse mortgages, 
127.18 	private pay options, and ways to access low or no-cost services or benefits through 
127.19 	volunteer-based or charitable programs; and
127.20 	(11) using risk management and support planning protocols, provide long-term care 
127.21 	options counseling to current residents of nursing homes deemed appropriate for discharge 
127.22 	by the commissioner. In order to meet this requirement, the commissioner shall provide 
127.23 	designated Senior LinkAge Line contact centers with a list of nursing home residents 
127.24 	appropriate for discharge planning via a secure Web portal. Senior LinkAge Line shall 
127.25 	provide these residents, if they indicate a preference to receive long-term care options 
127.26 	counseling, with initial assessment, review of risk factors, independent living support 
127.27 	consultation, or referral to:
127.28 	(i) long-term care consultation services under section 256B.0911;
127.29 	(ii) designated care coordinators of contracted entities under section 256B.035 for 
127.30 	persons who are enrolled in a managed care plan; or
127.31 	(iii) the long-term care consultation team for those who are appropriate for relocation 
127.32 	service coordination due to high-risk factors or psychological or physical disability.

127.33 	Sec. 10. Minnesota Statutes 2008, section 256B.057, subdivision 9, is amended to read:
127.34 		Subd. 9.Employed persons with disabilities. (a) Medical assistance may be paid 
127.35 	for a person who is employed and who:
128.1 	(1) but for excess earnings or assets, meets the definition of disabled under the 
128.2 	supplemental security income program;
128.3 	(2) is at least 16 but less than 65 years of age;
128.4 	(3) meets the asset limits in paragraph (c); and
128.5 	(4) effective November 1, 2003, pays a premium and other obligations under 
128.6 	paragraph (e).
128.7 	Any spousal income or assets shall be disregarded for purposes of eligibility and premium 
128.8 	determinations.
128.9 	(b) After the month of enrollment, a person enrolled in medical assistance under 
128.10 	this subdivision who:
128.11 	(1) is temporarily unable to work and without receipt of earned income due to a 
128.12 	medical condition, as verified by a physician, may retain eligibility for up to four calendar 
128.13 	months; or
128.14 	(2) effective January 1, 2004, loses employment for reasons not attributable to the 
128.15 	enrollee, may retain eligibility for up to four consecutive months after the month of job 
128.16 	loss. To receive a four-month extension, enrollees must verify the medical condition or 
128.17 	provide notification of job loss. All other eligibility requirements must be met and the 
128.18 	enrollee must pay all calculated premium costs for continued eligibility.
128.19 	(c) For purposes of determining eligibility under this subdivision, a person's assets 
128.20 	must not exceed $20,000, excluding:
128.21 	(1) all assets excluded under section 256B.056;
128.22 	(2) retirement accounts, including individual accounts, 401(k) plans, 403(b) plans, 
128.23 	Keogh plans, and pension plans; and
128.24 	(3) medical expense accounts set up through the person's employer.
128.25 	(d)(1) Effective January 1, 2004, for purposes of eligibility, there will be a $65 
128.26 	earned income disregard. To be eligible, a person applying for medical assistance under 
128.27 	this subdivision must have earned income above the disregard level.
128.28 	(2) Effective January 1, 2004, to be considered earned income, Medicare, Social 
128.29 	Security, and applicable state and federal income taxes must be withheld. To be eligible, 
128.30 	a person must document earned income tax withholding.
128.31 	(e)(1) A person whose earned and unearned income is equal to or greater than 100 
128.32 	percent of federal poverty guidelines for the applicable family size must pay a premium 
128.33 	to be eligible for medical assistance under this subdivision. The premium shall be based 
128.34 	on the person's gross earned and unearned income and the applicable family size using a 
128.35 	sliding fee scale established by the commissioner, which begins at one percent of income 
128.36 	at 100 percent of the federal poverty guidelines and increases to 7.5 percent of income 
129.1 	for those with incomes at or above 300 percent of the federal poverty guidelines. Annual 
129.2 	adjustments in the premium schedule based upon changes in the federal poverty guidelines 
129.3 	shall be effective for premiums due in July of each year.
129.4 	(2) Effective January 1, 2004, all enrollees must pay a premium to be eligible for 
129.5 	medical assistance under this subdivision. An enrollee shall pay the greater of a $35 
129.6 	premium or the premium calculated in clause (1).
129.7 	(3) Effective November 1, 2003, all enrollees who receive unearned income must 
129.8 	pay one-half of one percent of unearned income in addition to the premium amount.
129.9 	(4) Effective November 1, 2003, for enrollees whose income does not exceed 200 
129.10 	percent of the federal poverty guidelines and who are also enrolled in Medicare, the 
129.11 	commissioner must reimburse the enrollee for Medicare Part B premiums under section 
129.12 	256B.0625, subdivision 15, paragraph (a).
129.13 	(5) Increases in benefits under title II of the Social Security Act shall not be counted 
129.14 	as income for purposes of this subdivision until July 1 of each year.
129.15 	(f) A person's eligibility and premium shall be determined by the local county 
129.16 	agency. Premiums must be paid to the commissioner. All premiums are dedicated to 
129.17 	the commissioner.
129.18 	(g) Any required premium shall be determined at application and redetermined at 
129.19 	the enrollee's six-month income review or when a change in income or household size is 
129.20 	reported. Enrollees must report any change in income or household size within ten days 
129.21 	of when the change occurs. A decreased premium resulting from a reported change in 
129.22 	income or household size shall be effective the first day of the next available billing month 
129.23 	after the change is reported. Except for changes occurring from annual cost-of-living 
129.24 	increases, a change resulting in an increased premium shall not affect the premium amount 
129.25 	until the next six-month review.
129.26 	(h) Premium payment is due upon notification from the commissioner of the 
129.27 	premium amount required. Premiums may be paid in installments at the discretion of 
129.28 	the commissioner.
129.29 	(i) Nonpayment of the premium shall result in denial or termination of medical 
129.30 	assistance unless the person demonstrates good cause for nonpayment. Good cause exists 
129.31 	if the requirements specified in Minnesota Rules, part 9506.0040, subpart 7, items B to 
129.32 	D, are met. Except when an installment agreement is accepted by the commissioner, 
129.33 	all persons disenrolled for nonpayment of a premium must pay any past due premiums 
129.34 	as well as current premiums due prior to being reenrolled. Nonpayment shall include 
129.35 	payment with a returned, refused, or dishonored instrument. The commissioner may 
130.1 	require a guaranteed form of payment as the only means to replace a returned, refused, 
130.2 	or dishonored instrument.
130.3 	(j) The commissioner shall notify enrollees annually beginning at least 24 months 
130.4 	before the person's 65th birthday of the medical assistance eligibility rules affecting 
130.5 	income, assets, and treatment of a spouse's income and assets that will be applied upon 
130.6 	reaching age 65.

130.7 	EFFECTIVE DATE. This section is effective January 1, 2011.

130.8 	Sec. 11. Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 11, 
130.9 	is amended to read:
130.10 		Subd. 11.Personal care assistant; requirements. (a) A personal care assistant 
130.11 	must meet the following requirements:
130.12 	(1) be at least 18 years of age with the exception of persons who are 16 or 17 years 
130.13 	of age with these additional requirements:
130.14 	(i) supervision by a qualified professional every 60 days; and
130.15 	(ii) employment by only one personal care assistance provider agency responsible 
130.16 	for compliance with current labor laws;
130.17 	(2) be employed by a personal care assistance provider agency;
130.18 	(3) enroll with the department as a personal care assistant after clearing a background 
130.19 	study. Before a personal care assistant provides services, the personal care assistance 
130.20 	provider agency must initiate a background study on the personal care assistant under 
130.21 	chapter 245C, and the personal care assistance provider agency must have received a 
130.22 	notice from the commissioner that the personal care assistant is:
130.23 	(i) not disqualified under section 245C.14; or
130.24 	(ii) is disqualified, but the personal care assistant has received a set aside of the 
130.25 	disqualification under section 245C.22;
130.26 	(4) be able to effectively communicate with the recipient and personal care 
130.27 	assistance provider agency;
130.28 	(5) be able to provide covered personal care assistance services according to the 
130.29 	recipient's personal care assistance care plan, respond appropriately to recipient needs, 
130.30 	and report changes in the recipient's condition to the supervising qualified professional 
130.31 	or physician;
130.32 	(6) not be a consumer of personal care assistance services;
130.33 	(7) maintain daily written records including, but not limited to, time sheets under 
130.34 	subdivision 12;
131.1 	(8) effective January 1, 2010, complete standardized training as determined by the 
131.2 	commissioner before completing enrollment. Personal care assistant training must include 
131.3 	successful completion of the following training components: basic first aid, vulnerable 
131.4 	adult, child maltreatment, OSHA universal precautions, basic roles and responsibilities of 
131.5 	personal care assistants including information about assistance with lifting and transfers 
131.6 	for recipients, emergency preparedness, orientation to positive behavioral practices, fraud 
131.7 	issues, and completion of time sheets. Upon completion of the training components, 
131.8 	the personal care assistant must demonstrate the competency to provide assistance to 
131.9 	recipients;
131.10 	(9) complete training and orientation on the needs of the recipient within the first 
131.11 	seven days after the services begin; and
131.12 	(10) be limited to providing and being paid for up to 310 275  hours per month of 
131.13 	personal care assistance services regardless of the number of recipients being served or the 
131.14 	number of personal care assistance provider agencies enrolled with.
131.15 	(b) A legal guardian may be a personal care assistant if the guardian is not being paid 
131.16 	for the guardian services and meets the criteria for personal care assistants in paragraph (a).
131.17 	(c) Effective January 1, 2010, persons who do not qualify as a personal care assistant 
131.18 	include parents and stepparents of minors, spouses, paid legal guardians, family foster 
131.19 	care providers, except as otherwise allowed in section 256B.0625, subdivision 19a, or 
131.20 	staff of a residential setting.

131.21 	EFFECTIVE DATE. This section is effective July 1, 2011.

131.22 	Sec. 12. Minnesota Statutes 2008, section 256B.0915, is amended by adding a 
131.23 	subdivision to read:
131.24 		Subd. 3i.Rate reduction for customized living and 24-hour customized living 
131.25 	services. (a) Effective July 1, 2010, the commissioner shall reduce service component 
131.26 	rates and service rate limits for customized living services and 24-hour customized living 
131.27 	services, from the rates in effect on June 30, 2010, by five percent.
131.28 	(b) To implement the rate reductions in this subdivision, capitation rates paid by the 
131.29 	commissioner to managed care organizations under section 256B.69 shall reflect a ten 
131.30 	percent reduction for the specified services for the period January 1, 2011, to June 30, 
131.31 	2011, and a five percent reduction for those services on and after July 1, 2011.

131.32 	Sec. 13. Minnesota Statutes 2009 Supplement, section 256B.441, subdivision 55, 
131.33 	is amended to read:
132.1 		Subd. 55.Phase-in of rebased operating payment rates.  (a) For the rate years 
132.2 	beginning October 1, 2008, to October 1, 2015, the operating payment rate calculated 
132.3 	under this section shall be phased in by blending the operating rate with the operating 
132.4 	payment rate determined under section 256B.434. For purposes of this subdivision, the 
132.5 	rate to be used that is determined under section 256B.434 shall not include the portion of 
132.6 	the operating payment rate related to performance-based incentive payments under section 
132.7 	256B.434, subdivision 4, paragraph (d). For the rate year beginning October 1, 2008, the 
132.8 	operating payment rate for each facility shall be 13 percent of the operating payment rate 
132.9 	from this section, and 87 percent of the operating payment rate from section 256B.434. 
132.10 	For the rate year beginning October 1, 2009, the operating payment rate for each facility 
132.11 	shall be 14 percent of the operating payment rate from this section, and 86 percent of 
132.12 	the operating payment rate from section 256B.434. For rate years beginning October 1, 
132.13 	2010; October 1, 2011; and October 1, 2012, For the rate period from October 1, 2009, to 
132.14 	September 30, 2013,  no rate adjustments shall be implemented under this section, but shall 
132.15 	be determined under section 256B.434. For the rate year beginning October 1, 2013, the 
132.16 	operating payment rate for each facility shall be 65 percent of the operating payment rate 
132.17 	from this section, and 35 percent of the operating payment rate from section 256B.434. 
132.18 	For the rate year beginning October 1, 2014, the operating payment rate for each facility 
132.19 	shall be 82 percent of the operating payment rate from this section, and 18 percent of the 
132.20 	operating payment rate from section 256B.434. For the rate year beginning October 1, 
132.21 	2015, the operating payment rate for each facility shall be the operating payment rate 
132.22 	determined under this section. The blending of operating payment rates under this section 
132.23 	shall be performed separately for each RUG's class.
132.24 	(b) For the rate year beginning October 1, 2008, the commissioner shall apply limits 
132.25 	to the operating payment rate increases under paragraph (a) by creating a minimum 
132.26 	percentage increase and a maximum percentage increase.
132.27 	(1) Each nursing facility that receives a blended October 1, 2008, operating payment 
132.28 	rate increase under paragraph (a) of less than one percent, when compared to its operating 
132.29 	payment rate on September 30, 2008, computed using rates with RUG's weight of 1.00, 
132.30 	shall receive a rate adjustment of one percent.
132.31 	(2) The commissioner shall determine a maximum percentage increase that will 
132.32 	result in savings equal to the cost of allowing the minimum increase in clause (1). Nursing 
132.33 	facilities with a blended October 1, 2008, operating payment rate increase under paragraph 
132.34 	(a) greater than the maximum percentage increase determined by the commissioner, when 
132.35 	compared to its operating payment rate on September 30, 2008, computed using rates with 
132.36 	a RUG's weight of 1.00, shall receive the maximum percentage increase.
133.1 	(3) Nursing facilities with a blended October 1, 2008, operating payment rate 
133.2 	increase under paragraph (a) greater than one percent and less than the maximum 
133.3 	percentage increase determined by the commissioner, when compared to its operating 
133.4 	payment rate on September 30, 2008, computed using rates with a RUG's weight of 1.00, 
133.5 	shall receive the blended October 1, 2008, operating payment rate increase determined 
133.6 	under paragraph (a).
133.7 	(4) The October 1, 2009, through October 1, 2015, operating payment rate for 
133.8 	facilities receiving the maximum percentage increase determined in clause (2) shall be 
133.9 	the amount determined under paragraph (a) less the difference between the amount 
133.10 	determined under paragraph (a) for October 1, 2008, and the amount allowed under clause 
133.11 	(2). This rate restriction does not apply to rate increases provided in any other section.
133.12 	(c) A portion of the funds received under this subdivision that are in excess of 
133.13 	operating payment rates that a facility would have received under section 256B.434, as 
133.14 	determined in accordance with clauses (1) to (3), shall be subject to the requirements in 
133.15 	section 256B.434, subdivision 19, paragraphs (b) to (h).
133.16 	(1) Determine the amount of additional funding available to a facility, which shall be 
133.17 	equal to total medical assistance resident days from the most recent reporting year times 
133.18 	the difference between the blended rate determined in paragraph (a) for the rate year being 
133.19 	computed and the blended rate for the prior year.
133.20 	(2) Determine the portion of all operating costs, for the most recent reporting year, 
133.21 	that are compensation related. If this value exceeds 75 percent, use 75 percent.
133.22 	(3) Subtract the amount determined in clause (2) from 75 percent.
133.23 	(4) The portion of the fund received under this subdivision that shall be subject to 
133.24 	the requirements in section 256B.434, subdivision 19, paragraphs (b) to (h), shall equal 
133.25 	the amount determined in clause (1) times the amount determined in clause (3).

133.26 	EFFECTIVE DATE. This section is effective retroactive to October 1, 2009.

133.27 	Sec. 14. Minnesota Statutes 2008, section 256B.5012, is amended by adding a 
133.28 	subdivision to read:
133.29 		Subd. 9.Rate increase effective June 1, 2010. For rate periods beginning on or 
133.30 	after June 1, 2010, the commissioner shall increase the total operating payment rate for 
133.31 	each facility reimbursed under this section by $8.74 per day. The increase shall not be 
133.32 	subject to any annual percentage increase.

133.33 	EFFECTIVE DATE. This section is effective June 1, 2010.

134.1 	Sec. 15. Minnesota Statutes 2009 Supplement, section 256B.69, subdivision 23, 
134.2 	is amended to read:
134.3 		Subd. 23.Alternative services; elderly and disabled persons. (a) The 
134.4 	commissioner may implement demonstration projects to create alternative integrated 
134.5 	delivery systems for acute and long-term care services to elderly persons and persons 
134.6 	with disabilities as defined in section 256B.77, subdivision 7a, that provide increased 
134.7 	coordination, improve access to quality services, and mitigate future cost increases. 
134.8 	The commissioner may seek federal authority to combine Medicare and Medicaid 
134.9 	capitation payments for the purpose of such demonstrations and may contract with 
134.10 	Medicare-approved special needs plans to provide Medicaid services. Medicare funds and 
134.11 	services shall be administered according to the terms and conditions of the federal contract 
134.12 	and demonstration provisions. For the purpose of administering medical assistance funds, 
134.13 	demonstrations under this subdivision are subject to subdivisions 1 to 22. The provisions 
134.14 	of Minnesota Rules, parts 9500.1450 to 9500.1464, apply to these demonstrations, 
134.15 	with the exceptions of parts 9500.1452, subpart 2, item B; and 9500.1457, subpart 1, 
134.16 	items B and C, which do not apply to persons enrolling in demonstrations under this 
134.17 	section. An initial open enrollment period may be provided. Persons who disenroll from 
134.18 	demonstrations under this subdivision remain subject to Minnesota Rules, parts 9500.1450 
134.19 	to 9500.1464. When a person is enrolled in a health plan under these demonstrations and 
134.20 	the health plan's participation is subsequently terminated for any reason, the person shall 
134.21 	be provided an opportunity to select a new health plan and shall have the right to change 
134.22 	health plans within the first 60 days of enrollment in the second health plan. Persons 
134.23 	required to participate in health plans under this section who fail to make a choice of 
134.24 	health plan shall not be randomly assigned to health plans under these demonstrations. 
134.25 	Notwithstanding section 256L.12, subdivision 5, and Minnesota Rules, part 9505.5220, 
134.26 	subpart 1, item A, if adopted, for the purpose of demonstrations under this subdivision, 
134.27 	the commissioner may contract with managed care organizations, including counties, to 
134.28 	serve only elderly persons eligible for medical assistance, elderly and disabled persons, or 
134.29 	disabled persons only. For persons with a primary diagnosis of developmental disability, 
134.30 	serious and persistent mental illness, or serious emotional disturbance, the commissioner 
134.31 	must ensure that the county authority has approved the demonstration and contracting 
134.32 	design. Enrollment in these projects for persons with disabilities shall be voluntary. The 
134.33 	commissioner shall not implement any demonstration project under this subdivision for 
134.34 	persons with a primary diagnosis of developmental disabilities, serious and persistent 
134.35 	mental illness, or serious emotional disturbance, without approval of the county board of 
134.36 	the county in which the demonstration is being implemented.
135.1 	(b) Notwithstanding chapter 245B, sections 252.40 to 252.46, 256B.092, 256B.501 
135.2 	to 256B.5015, and Minnesota Rules, parts 9525.0004 to 9525.0036, 9525.1200 to 
135.3 	9525.1330, 9525.1580, and 9525.1800 to 9525.1930, the commissioner may implement 
135.4 	under this section projects for persons with developmental disabilities. The commissioner 
135.5 	may capitate payments for ICF/MR services, waivered services for developmental 
135.6 	disabilities, including case management services, day training and habilitation and 
135.7 	alternative active treatment services, and other services as approved by the state and by the 
135.8 	federal government. Case management and active treatment must be individualized and 
135.9 	developed in accordance with a person-centered plan. Costs under these projects may not 
135.10 	exceed costs that would have been incurred under fee-for-service. Beginning July 1, 2003, 
135.11 	and until four years after the pilot project implementation date, subcontractor participation 
135.12 	in the long-term care developmental disability pilot is limited to a nonprofit long-term 
135.13 	care system providing ICF/MR services, home and community-based waiver services, 
135.14 	and in-home services to no more than 120 consumers with developmental disabilities in 
135.15 	Carver, Hennepin, and Scott Counties. The commissioner shall report to the legislature 
135.16 	prior to expansion of the developmental disability pilot project. This paragraph expires 
135.17 	four years after the implementation date of the pilot project.
135.18 	(c) Before implementation of a demonstration project for disabled persons, the 
135.19 	commissioner must provide information to appropriate committees of the house of 
135.20 	representatives and senate and must involve representatives of affected disability groups 
135.21 	in the design of the demonstration projects.
135.22 	(d) A nursing facility reimbursed under the alternative reimbursement methodology 
135.23 	in section 256B.434 may, in collaboration with a hospital, clinic, or other health care entity 
135.24 	provide services under paragraph (a). The commissioner shall amend the state plan and 
135.25 	seek any federal waivers necessary to implement this paragraph.
135.26 	(e) The commissioner, in consultation with the commissioners of commerce and 
135.27 	health, may approve and implement programs for all-inclusive care for the elderly (PACE) 
135.28 	according to federal laws and regulations governing that program and state laws or rules 
135.29 	applicable to participating providers. The process for approval of these programs shall 
135.30 	begin only after the commissioner receives grant money in an amount sufficient to cover 
135.31 	the state share of the administrative and actuarial costs to implement the programs during 
135.32 	state fiscal years 2006 and 2007. Grant amounts for this purpose shall be deposited in an 
135.33 	account in the special revenue fund and are appropriated to the commissioner to be used 
135.34 	solely for the purpose of PACE administrative and actuarial costs. A PACE provider is 
135.35 	not required to be licensed or certified as a health plan company as defined in section 
135.36 	62Q.01, subdivision 4. Persons age 55 and older who have been screened by the county 
136.1 	and found to be eligible for services under the elderly waiver or community alternatives 
136.2 	for disabled individuals or who are already eligible for Medicaid but meet level of 
136.3 	care criteria for receipt of waiver services may choose to enroll in the PACE program. 
136.4 	Medicare and Medicaid services will be provided according to this subdivision and 
136.5 	federal Medicare and Medicaid requirements governing PACE providers and programs. 
136.6 	PACE enrollees will receive Medicaid home and community-based services through the 
136.7 	PACE provider as an alternative to services for which they would otherwise be eligible 
136.8 	through home and community-based waiver programs and Medicaid State Plan Services. 
136.9 	The commissioner shall establish Medicaid rates for PACE providers that do not exceed 
136.10 	costs that would have been incurred under fee-for-service or other relevant managed care 
136.11 	programs operated by the state.
136.12 	(f) The commissioner shall seek federal approval to expand the Minnesota disability 
136.13 	health options (MnDHO) program established under this subdivision in stages, first to 
136.14 	regional population centers outside the seven-county metro area and then to all areas of 
136.15 	the state. Until July 1, 2009, expansion for MnDHO projects that include home and 
136.16 	community-based services is limited to the two projects and service areas in effect on 
136.17 	March 1, 2006. Enrollment in integrated MnDHO programs that include home and 
136.18 	community-based services shall remain voluntary. Costs for home and community-based 
136.19 	services included under MnDHO must not exceed costs that would have been incurred 
136.20 	under the fee-for-service program. Notwithstanding whether expansion occurs under 
136.21 	this paragraph, in determining MnDHO payment rates and risk adjustment methods for 
136.22 	contract years starting in 2012, the commissioner must consider the methods used to 
136.23 	determine county allocations for home and community-based program participants. If 
136.24 	necessary to reduce MnDHO rates to comply with the provision regarding MnDHO costs 
136.25 	for home and community-based services, the commissioner shall achieve the reduction 
136.26 	by maintaining the base rate for contract years year 2010 and 2011 for services provided 
136.27 	under the community alternatives for disabled individuals waiver at the same level as for 
136.28 	contract year 2009. The commissioner may apply other reductions to MnDHO rates to 
136.29 	implement decreases in provider payment rates required by state law. Effective January 
136.30 	1, 2011, enrollment and operation of the MnDHO program in effect during 2010 shall 
136.31 	cease. The commissioner may reopen the program provided all applicable conditions of 
136.32 	this section are met. In developing program specifications for expansion of integrated 
136.33 	programs, the commissioner shall involve and consult the state-level stakeholder group 
136.34 	established in subdivision 28, paragraph (d), including consultation on whether and how 
136.35 	to include home and community-based waiver programs. Plans for further expansion of to 
136.36 	reopen MnDHO projects shall be presented to the chairs of the house of representatives 
137.1 	and senate committees with jurisdiction over health and human services policy and finance 
137.2 	by February 1, 2007 prior to implementation.
137.3 	(g) Notwithstanding section 256B.0261, health plans providing services under this 
137.4 	section are responsible for home care targeted case management and relocation targeted 
137.5 	case management. Services must be provided according to the terms of the waivers and 
137.6 	contracts approved by the federal government.

137.7 	Sec. 16. Laws 2009, chapter 79, article 8, section 51, the effective date, is amended to 
137.8 	read:

137.9 	EFFECTIVE DATE. This section is effective January July 1, 2011.

137.10 	Sec. 17. Laws 2009, chapter 79, article 8, section 84, is amended to read:
137.11 	Sec. 84. HOUSING OPTIONS.
 137.12 	The commissioner of human services, in consultation with the commissioner of 
137.13 	administration and the Minnesota Housing Finance Agency, and representatives of 
137.14 	counties, residents' advocacy groups, consumers of housing services, and provider 
137.15 	agencies shall explore ways to maximize the availability and affordability of housing 
137.16 	choices available to persons with disabilities or who need care assistance due to other 
137.17 	health challenges. A goal shall also be to minimize state physical plant costs in order to 
137.18 	serve more persons with appropriate program and care support. Consideration shall be 
137.19 	given to:
137.20 	(1) improved access to rent subsidies;
137.21 	(2) use of cooperatives, land trusts, and other limited equity ownership models;
137.22 	(3) whether a public equity housing fund should be established that would maintain 
137.23 	the state's interest, to the extent paid from state funds, including group residential housing 
137.24 	and Minnesota supplemental aid shelter-needy funds in provider-owned housing, so that 
137.25 	when sold, the state would recover its share for a public equity fund to be used for future 
137.26 	public needs under this chapter;
137.27 	(4) the desirability of the state acquiring an ownership interest or promoting the 
137.28 	use of publicly owned housing;
137.29 	(5) promoting more choices in the market for accessible housing that meets the 
137.30 	needs of persons with physical challenges; and
137.31 	(6) what consumer ownership models, if any, are appropriate; and
137.32 	(7) a review of the definition of home and community services and appropriate 
137.33 	settings where these services may be provided, including the number of people who 
138.1 	may reside under one roof, through the home and community-based waivers for seniors 
138.2 	and individuals with disabilities.
138.3 	The commissioner shall provide a written report on the findings of the evaluation of 
138.4 	housing options to the chairs and ranking minority members of the house of representatives 
138.5 	and senate standing committees with jurisdiction over health and human services policy 
138.6 	and funding by December 15, 2010. This report shall replace the November 1, 2010, 
138.7 	annual report by the commissioner required in Minnesota Statutes, sections 256B.0916, 
138.8 	subdivision 7, and 256B.49, subdivision 21.

138.9 	Sec. 18. COMMISSIONER TO SEEK FEDERAL MATCH.
 138.10 	(a) The commissioner of human services shall seek federal financial participation 
138.11 	for eligible activity related to fiscal years 2010 and 2011 grants to Advocating Change 
138.12 	Together to establish a statewide self-advocacy network for persons with developmental 
138.13 	disabilities and for eligible activities under any future grants to the organization.
138.14 	(b) The commissioner shall report to the chairs and ranking minority members of 
138.15 	the senate Health and Human Services Budget Division and the house of representatives 
138.16 	Health Care and Human Services Finance Division by December 15, 2010, with the 
138.17 	results of the application for federal matching funds.

138.18 	Sec. 19. ICF/MR RATE INCREASE.
 138.19 	The daily rate at an intermediate care facility for the developmentally disabled 
138.20 	located in Clearwater County and classified as a Class A facility with 15 beds shall be 
138.21 	increased from $112.73 to $138.23 for the rate period July 1, 2010, to June 30, 2011.

138.22 	ARTICLE 18
138.23 	CHILDREN AND FAMILY SERVICES

138.24 	Section 1. Minnesota Statutes 2008, section 256D.0515, is amended to read:
138.25 	256D.0515 ASSET LIMITATIONS FOR FOOD STAMP HOUSEHOLDS.
138.26 	All food stamp households must be determined eligible for the benefit discussed 
138.27 	under section 256.029. Food stamp households must demonstrate that:
138.28 	(1) their gross income meets the federal Food Stamp requirements under United 
138.29 	States Code, title 7, section 2014(c); and
138.30 	(2) they have financial resources, excluding vehicles, of less than $7,000is equal to 
138.31 	or less than 165 percent of the federal poverty guidelines for the same family size.

138.32 	EFFECTIVE DATE. This section is effective November 1, 2010.

139.1 	Sec. 2. Minnesota Statutes 2008, section 256I.05, is amended by adding a subdivision 
139.2 	to read:
139.3 		Subd. 1n.Supplemental rate; Mahnomen County. Notwithstanding the 
139.4 	provisions of this section, for the rate period July 1, 2010, to June 30, 2011, a county 
139.5 	agency shall negotiate a supplemental service rate in addition to the rate specified in 
139.6 	subdivision 1, not to exceed $753 per month or the existing rate, including any legislative 
139.7 	authorized inflationary adjustments, for a group residential provider located in Mahnomen 
139.8 	County that operates a 28-bed facility providing 24-hour care to individuals who are 
139.9 	homeless, disabled, chemically dependent, mentally ill, or chronically homeless.

139.10 	Sec. 3. Minnesota Statutes 2008, section 256J.24, subdivision 6, is amended to read:
139.11 		Subd. 6.Family cap. (a) MFIP assistance units shall not receive an increase in the 
139.12 	cash portion of the transitional standard as a result of the birth of a child, unless one of 
139.13 	the conditions under paragraph (b) is met. The child shall be considered a member of the 
139.14 	assistance unit according to subdivisions 1 to 3, but shall be excluded in determining 
139.15 	family size for purposes of determining the amount of the cash portion of the transitional 
139.16 	standard under subdivision 5. The child shall be included in determining family size for 
139.17 	purposes of determining the food portion of the transitional standard. The transitional 
139.18 	standard under this subdivision shall be the total of the cash and food portions as specified 
139.19 	in this paragraph. The family wage level under this subdivision shall be based on the 
139.20 	family size used to determine the food portion of the transitional standard.
139.21 	(b) A child shall be included in determining family size for purposes of determining 
139.22 	the amount of the cash portion of the MFIP transitional standard when at least one of 
139.23 	the following conditions is met:
139.24 	(1) for families receiving MFIP assistance on July 1, 2003, the child is born to the 
139.25 	adult parent before May 1, 2004;
139.26 	(2) for families who apply for the diversionary work program under section 256J.95
139.27 	or MFIP assistance on or after July 1, 2003, the child is born to the adult parent within 
139.28 	ten months of the date the family is eligible for assistance; 
139.29 	(3) the child was conceived as a result of a sexual assault or incest, provided that the 
139.30 	incident has been reported to a law enforcement agency;
139.31 	(4) the child's mother is a minor caregiver as defined in section 256J.08, subdivision 
139.32 	59, and the child, or multiple children, are the mother's first birth; or
139.33 	(5) the child is the mother's first child subsequent to a pregnancy that did not result 
139.34 	in a live birth; or
140.1 	(6) any child previously excluded in determining family size under paragraph 
140.2 	(a) shall be included if the adult parent or parents have not received benefits from the 
140.3 	diversionary work program under section 256J.95 or MFIP assistance in the previous ten 
140.4 	months. An adult parent or parents who reapply and have received benefits from the 
140.5 	diversionary work program or MFIP assistance in the past ten months shall be under the 
140.6 	ten-month grace period of their previous application under clause (2).
140.7 	(c) Income and resources of a child excluded under this subdivision, except child 
140.8 	support received or distributed on behalf of this child, must be considered using the same 
140.9 	policies as for other children when determining the grant amount of the assistance unit.
140.10 	(d) The caregiver must assign support and cooperate with the child support 
140.11 	enforcement agency to establish paternity and collect child support on behalf of the 
140.12 	excluded child. Failure to cooperate results in the sanction specified in section 256J.46, 
140.13 	subdivisions 2 and 2a. Current support paid on behalf of the excluded child shall be 
140.14 	distributed according to section 256.741, subdivision 15. 
140.15 	(e) County agencies must inform applicants of the provisions under this subdivision 
140.16 	at the time of each application and at recertification.
140.17 	(f) Children excluded under this provision shall be deemed MFIP recipients for 
140.18 	purposes of child care under chapter 119B.

140.19 	EFFECTIVE DATE. This section is effective September 1, 2010.

140.20 	Sec. 4. Minnesota Statutes 2009 Supplement, section 256J.425, subdivision 3, is 
140.21 	amended to read:
140.22 		Subd. 3.Hard-to-employ participants. (a) An assistance unit subject to the time 
140.23 	limit in section 256J.42, subdivision 1, is eligible to receive months of assistance under 
140.24 	a hardship extension if the participant who reached the time limit belongs to any of the 
140.25 	following groups: 
140.26 	(1) a person who is diagnosed by a licensed physician, psychological practitioner, or 
140.27 	other qualified professional, as developmentally disabled or mentally ill, and the condition 
140.28 	severely limits the person's ability to obtain or maintain suitable employment;
140.29 	(2) a person who:
140.30 	(i) has been assessed by a vocational specialist or the county agency to be 
140.31 	unemployable for purposes of this subdivision; or
140.32 	(ii) has an IQ below 80 who has been assessed by a vocational specialist or a county 
140.33 	agency to be employable, but the condition severely limits the person's ability to obtain or 
140.34 	maintain suitable employment. The determination of IQ level must be made by a qualified 
140.35 	professional. In the case of a non-English-speaking person: (A) the determination must 
141.1 	be made by a qualified professional with experience conducting culturally appropriate 
141.2 	assessments, whenever possible; (B) the county may accept reports that identify an 
141.3 	IQ range as opposed to a specific score; (C) these reports must include a statement of 
141.4 	confidence in the results;
141.5 	(3) a person who is determined by a qualified professional to be learning disabled, 
141.6 	and the condition severely limits the person's ability to obtain or maintain suitable 
141.7 	employment. For purposes of the initial approval of a learning disability extension, the 
141.8 	determination must have been made or confirmed within the previous 12 months. In the 
141.9 	case of a non-English-speaking person: (i) the determination must be made by a qualified 
141.10 	professional with experience conducting culturally appropriate assessments, whenever 
141.11 	possible; and (ii) these reports must include a statement of confidence in the results. If a 
141.12 	rehabilitation plan for a participant extended as learning disabled is developed or approved 
141.13 	by the county agency, the plan must be incorporated into the employment plan. However, 
141.14 	a rehabilitation plan does not replace the requirement to develop and comply with an 
141.15 	employment plan under section 256J.521; or 
141.16 	(4) a person who has been granted a family violence waiver, and who is complying 
141.17 	with an employment plan under section 256J.521, subdivision 3. 
141.18 	(b) For purposes of this section chapter, "severely limits the person's ability to obtain 
141.19 	or maintain suitable employment" means: 
141.20 	(1) that a qualified professional has determined that the person's condition prevents 
141.21 	the person from working 20 or more hours per week; or 
141.22 	(2) for a person who meets the requirements of paragraph (a), clause (2), item (ii), or 
141.23 	clause (3), a qualified professional has determined the person's condition:
141.24 	(i) significantly restricts the range of employment that the person is able to perform; 
141.25 	or 
141.26 	(ii) significantly interferes with the person's ability to obtain or maintain suitable 
141.27 	employment for 20 or more hours per week.

141.28 	Sec. 5. Minnesota Statutes 2009 Supplement, section 256J.621, is amended to read:
141.29 	256J.621 WORK PARTICIPATION CASH BENEFITS.
141.30 	(a) Effective October 1, 2009, Upon exiting the diversionary work program (DWP) 
141.31 	or upon terminating the Minnesota family investment program with earnings, a participant 
141.32 	who is employed may be eligible for work participation cash benefits of $50$25 per 
141.33 	month to assist in meeting the family's basic needs as the participant continues to move 
141.34 	toward self-sufficiency.
142.1 	(b) To be eligible for work participation cash benefits, the participant shall not 
142.2 	receive MFIP or diversionary work program assistance during the month and the 
142.3 	participant or participants must meet the following work requirements:
142.4 	(1) if the participant is a single caregiver and has a child under six years of age, the 
142.5 	participant must be employed at least 87 hours per month;
142.6 	(2) if the participant is a single caregiver and does not have a child under six years of 
142.7 	age, the participant must be employed at least 130 hours per month; or
142.8 	(3) if the household is a two-parent family, at least one of the parents must be 
142.9 	employed an average of at least 130 hours per month.
142.10 	Whenever a participant exits the diversionary work program or is terminated from 
142.11 	MFIP and meets the other criteria in this section, work participation cash benefits are 
142.12 	available for up to 24 consecutive months.
142.13 	(c) Expenditures on the program are maintenance of effort state funds under 
142.14 	a separate state program for participants under paragraph (b), clauses (1) and (2). 
142.15 	Expenditures for participants under paragraph (b), clause (3), are nonmaintenance of effort 
142.16 	funds. Months in which a participant receives work participation cash benefits under this 
142.17 	section do not count toward the participant's MFIP 60-month time limit.

142.18 	EFFECTIVE DATE. This section is effective December 1, 2010.

142.19 	ARTICLE 19
142.20 	MISCELLANEOUS

142.21 	Section 1. [62Q.545] COVERAGE OF PRIVATE DUTY NURSING SERVICES.
142.22 	(a) Private duty nursing services, as provided under section 256B.0625, subdivision 
142.23 	7, with the exception of section 256B.0654, subdivision 4, shall be covered under a health 
142.24 	plan for persons who are concurrently covered by both the health plan  and enrolled in 
142.25 	medical assistance under chapter 256B.
142.26 	(b) For purposes of this section, a period of private duty nursing services may 
142.27 	be subject to the co-payment, coinsurance, deductible, or other enrollee cost-sharing 
142.28 	requirements that apply under the health plan. Cost-sharing requirements for private 
142.29 	duty nursing services must not place a greater financial burden on the insured or enrollee 
142.30 	than those requirements applied by the health plan to other similar services or benefits. 
142.31 	Nothing in this section is intended to prevent a health plan company from requiring 
142.32 	prior authorization by the health plan company for such services as required by section 
142.33 	256B.0625, subdivision 7, or use of contracted providers under the applicable provisions 
142.34 	of the health plan.

143.1 	EFFECTIVE DATE. This section is effective July 1, 2010, and applies to health 
143.2 	plans offered, sold, issued, or renewed on or after that date.

143.3 	Sec. 2. [137.32] MINNESOTA COUPLES ON THE BRINK PROJECT.
143.4 		Subdivision 1.Establishment. Within the limits of available appropriations, the 
143.5 	Board of Regents of the University of Minnesota is requested to develop and implement 
143.6 	a Minnesota couples on the brink project, as provided for in this section. The regents 
143.7 	may administer the project with federal grants, state appropriations, and in-kind services 
143.8 	received for this purpose.
143.9 		Subd. 2.Purpose. The purpose of the project is to develop, evaluate, and 
143.10 	disseminate best practices for promoting successful reconciliation between married 
143.11 	persons who are considering or have commenced a marriage dissolution proceeding and 
143.12 	who choose to pursue reconciliation.
143.13 		Subd. 3.Implementation. The regents shall:
143.14 	(1) enter into contracts or manage a grant process for implementation of the project; 
143.15 	and
143.16 	(2) develop and implement an evaluation component for the project.

143.17 	Sec. 3. Minnesota Statutes 2008, section 152.126, as amended by Laws 2009, chapter 
143.18 	79, article 11, sections 9, 10, and 11, is amended to read:
143.19 	152.126 SCHEDULE II AND III CONTROLLED SUBSTANCES 
143.20 	PRESCRIPTION ELECTRONIC REPORTING SYSTEM.
143.21 		Subdivision 1.Definitions. For purposes of this section, the terms defined in this 
143.22 	subdivision have the meanings given.
143.23 	(a) "Board" means the Minnesota State Board of Pharmacy established under 
143.24 	chapter 151.
143.25 	(b) "Controlled substances" means those substances listed in section 152.02, 
143.26 	subdivisions 3 to 5, and those substances defined by the board pursuant to section 152.02, 
143.27 	subdivisions 7, 8, and 12.
143.28 	(c) "Dispense" or "dispensing" has the meaning given in section 151.01, subdivision 
143.29 	30. Dispensing does not include the direct administering of a controlled substance to a 
143.30 	patient by a licensed health care professional.
143.31 	(d) "Dispenser" means a person authorized by law to dispense a controlled substance, 
143.32 	pursuant to a valid prescription. For the purposes of this section, a dispenser does not 
143.33 	include a licensed hospital pharmacy that distributes controlled substances for inpatient 
143.34 	hospital care or a veterinarian who is dispensing prescriptions under section 156.18.
144.1 	(e) "Prescriber" means a licensed health care professional who is authorized to 
144.2 	prescribe a controlled substance under section 152.12, subdivision 1.
144.3 	(f) "Prescription" has the meaning given in section 151.01, subdivision 16.
144.4 		Subd. 1a.Treatment of intractable pain. This section is not intended to limit or 
144.5 	interfere with the legitimate prescribing of controlled substances for pain. No prescriber 
144.6 	shall be subject to disciplinary action by a health-related licensing board for prescribing a 
144.7 	controlled substance according to the provisions of section 152.125.
144.8 		Subd. 2.Prescription electronic reporting system. (a) The board shall establish 
144.9 	by January 1, 2010, an electronic system for reporting the information required under 
144.10 	subdivision 4 for all controlled substances dispensed within the state. 
144.11 	(b) The board may contract with a vendor for the purpose of obtaining technical 
144.12 	assistance in the design, implementation, operation, and maintenance of the electronic 
144.13 	reporting system. 
144.14 		Subd. 3.Prescription Electronic Reporting Advisory Committee. (a) The 
144.15 	board shall convene an advisory committee. The committee must include at least one 
144.16 	representative of:
144.17 	(1) the Department of Health;
144.18 	(2) the Department of Human Services;
144.19 	(3) each health-related licensing board that licenses prescribers;
144.20 	(4) a professional medical association, which may include an association of pain 
144.21 	management and chemical dependency specialists;
144.22 	(5) a professional pharmacy association;
144.23 	(6) a professional nursing association;
144.24 	(7) a professional dental association;
144.25 	(8) a consumer privacy or security advocate; and
144.26 	(9) a consumer or patient rights organization.
144.27 	(b) The advisory committee shall advise the board on the development and operation 
144.28 	of the electronic reporting system, including, but not limited to:
144.29 	(1) technical standards for electronic prescription drug reporting;
144.30 	(2) proper analysis and interpretation of prescription monitoring data; and
144.31 	(3) an evaluation process for the program.
144.32 	(c) The Board of Pharmacy, after consultation with the advisory committee, shall 
144.33 	present recommendations and draft legislation on the issues addressed by the advisory 
144.34 	committee under paragraph (b), to the legislature by December 15, 2007.
145.1 		Subd. 4.Reporting requirements; notice. (a) Each dispenser must submit the 
145.2 	following data to the board or its designated vendor, subject to the notice required under 
145.3 	paragraph (d):
145.4 	(1) name of the prescriber;
145.5 	(2) national provider identifier of the prescriber;
145.6 	(3) name of the dispenser;
145.7 	(4) national provider identifier of the dispenser;
145.8 	(5) prescription number;
145.9 	(6) name of the patient for whom the prescription was written;
145.10 	(7) address of the patient for whom the prescription was written;
145.11 	(8) date of birth of the patient for whom the prescription was written;
145.12 	(9) date the prescription was written;
145.13 	(10) date the prescription was filled;
145.14 	(11) name and strength of the controlled substance;
145.15 	(12) quantity of controlled substance prescribed;
145.16 	(13) quantity of controlled substance dispensed; and
145.17 	(14) number of days supply.
145.18 	(b) The dispenser must submit the required information by a procedure and in a 
145.19 	format established by the board. The board may allow dispensers to omit data listed in this 
145.20 	subdivision or may require the submission of data not listed in this subdivision provided 
145.21 	the omission or submission is necessary for the purpose of complying with the electronic 
145.22 	reporting or data transmission standards of the American Society for Automation in 
145.23 	Pharmacy, the National Council on Prescription Drug Programs, or other relevant national 
145.24 	standard-setting body.
145.25 	(c) A dispenser is not required to submit this data for those controlled substance 
145.26 	prescriptions dispensed for:
145.27 	(1) individuals residing in licensed skilled nursing or intermediate care facilities;
145.28 	(2) individuals receiving assisted living services under chapter 144G or through a 
145.29 	medical assistance home and community-based waiver;
145.30 	(3) individuals receiving medication intravenously;
145.31 	(4) individuals receiving hospice and other palliative or end-of-life care; and
145.32 	(5) individuals receiving services from a home care provider regulated under chapter 
145.33 	144A.
145.34 	(d) A dispenser must not submit data under this subdivision unless a conspicuous 
145.35 	notice of the reporting requirements of this section is given to the patient for whom the 
145.36 	prescription was written.
146.1 		Subd. 5.Use of data by board. (a) The board shall develop and maintain a database 
146.2 	of the data reported under subdivision 4. The board shall maintain data that could identify 
146.3 	an individual prescriber or dispenser in encrypted form. The database may be used by 
146.4 	permissible users identified under subdivision 6 for the identification of:
146.5 	(1) individuals receiving prescriptions for controlled substances from prescribers 
146.6 	who subsequently obtain controlled substances from dispensers in quantities or with a 
146.7 	frequency inconsistent with generally recognized standards of use for those controlled 
146.8 	substances, including standards accepted by national and international pain management 
146.9 	associations; and
146.10 	(2) individuals presenting forged or otherwise false or altered prescriptions for 
146.11 	controlled substances to dispensers.
146.12 	(b) No permissible user identified under subdivision 6 may access the database 
146.13 	for the sole purpose of identifying prescribers of controlled substances for unusual or 
146.14 	excessive prescribing patterns without a valid search warrant or court order.
146.15 	(c) No personnel of a state or federal occupational licensing board or agency may 
146.16 	access the database for the purpose of obtaining information to be used to initiate or 
146.17 	substantiate a disciplinary action against a prescriber.
146.18 	(d) Data reported under subdivision 4 shall be retained by the board in the database 
146.19 	for a 12-month period, and shall be removed from the database no later than 12 months 
146.20 	from the datethe last day of the month during which the data was received.
146.21 		Subd. 6.Access to reporting system data. (a) Except as indicated in this 
146.22 	subdivision, the data submitted to the board under subdivision 4 is private data on 
146.23 	individuals as defined in section 13.02, subdivision 12, and not subject to public disclosure.
146.24 	(b) Except as specified in subdivision 5, the following persons shall be considered 
146.25 	permissible users and may access the data submitted under subdivision 4 in the same or 
146.26 	similar manner, and for the same or similar purposes, as those persons who are authorized 
146.27 	to access similar private data on individuals under federal and state law:
146.28 	(1) a prescriber or an agent or employee of the prescriber to whom the prescriber has 
146.29 	delegated the task of accessing the data, to the extent the information relates specifically to 
146.30 	a current patient, to whom the prescriber is prescribing or considering prescribing any 
146.31 	controlled substance and with the provision that the prescriber remains responsible for the 
146.32 	use or misuse of data accessed by a delegated agent or employee;
146.33 	(2) a dispenser or an agent or employee of the dispenser to whom the dispenser has 
146.34 	delegated the task of accessing the data, to the extent the information relates specifically 
146.35 	to a current patient to whom that dispenser is dispensing or considering dispensing any 
147.1 	controlled substance and with the provision that the dispenser remains responsible for the 
147.2 	use or misuse of data accessed by a delegated agent or employee;
147.3 	(3) an individual who is the recipient of a controlled substance prescription for 
147.4 	which data was submitted under subdivision 4, or a guardian of the individual, parent or 
147.5 	guardian of a minor, or health care agent of the individual acting under a health care 
147.6 	directive under chapter 145C;
147.7 	(4) personnel of the board specifically assigned to conduct a bona fide investigation 
147.8 	of a specific licensee;
147.9 	(5) personnel of the board engaged in the collection of controlled substance 
147.10 	prescription information as part of the assigned duties and responsibilities under this 
147.11 	section;
147.12 	(6) authorized personnel of a vendor under contract with the board who are engaged 
147.13 	in the design, implementation, operation, and maintenance of the electronic reporting 
147.14 	system as part of the assigned duties and responsibilities of their employment, provided 
147.15 	that access to data is limited to the minimum amount necessary to carry out such duties 
147.16 	and responsibilities;
147.17 	(7) federal, state, and local law enforcement authorities acting pursuant to a valid 
147.18 	search warrant; and
147.19 	(8) personnel of the medical assistance program assigned to use the data collected 
147.20 	under this section to identify recipients whose usage of controlled substances may warrant 
147.21 	restriction to a single primary care physician, a single outpatient pharmacy, or a single 
147.22 	hospital.
147.23 	For purposes of clause (3), access by an individual includes persons in the definition 
147.24 	of an individual under section 13.02.
147.25 	(c) Any permissible user identified in paragraph (b), who directly accesses 
147.26 	the data electronically, shall implement and maintain a comprehensive information 
147.27 	security program that contains administrative, technical, and physical safeguards that 
147.28 	are appropriate to the user's size and complexity, and the sensitivity of the personal 
147.29 	information obtained. The permissible user shall identify reasonably foreseeable internal 
147.30 	and external risks to the security, confidentiality, and integrity of personal information 
147.31 	that could result in the unauthorized disclosure, misuse, or other compromise of the 
147.32 	information and assess the sufficiency of any safeguards in place to control the risks.
147.33 	(d) The board shall not release data submitted under this section unless it is provided 
147.34 	with evidence, satisfactory to the board, that the person requesting the information is 
147.35 	entitled to receive the data.
148.1 	(e) The board shall not release the name of a prescriber without the written consent 
148.2 	of the prescriber or a valid search warrant or court order. The board shall provide a 
148.3 	mechanism for a prescriber to submit to the board a signed consent authorizing the release 
148.4 	of the prescriber's name when data containing the prescriber's name is requested.
148.5 	(f) The board shall maintain a log of all persons who access the data and shall ensure 
148.6 	that any permissible user complies with paragraph (c) prior to attaining direct access to 
148.7 	the data.
148.8 	(g) Section 13.05, subdivision 6, shall apply to any contract the board enters into 
148.9 	pursuant to subdivision 2. A vendor shall not use data collected under this section for 
148.10 	any purpose not specified in this section.
148.11 		Subd. 7.Disciplinary action. (a) A dispenser who knowingly fails to submit data to 
148.12 	the board as required under this section is subject to disciplinary action by the appropriate 
148.13 	health-related licensing board.
148.14 	(b) A prescriber or dispenser authorized to access the data who knowingly discloses 
148.15 	the data in violation of state or federal laws relating to the privacy of health care data 
148.16 	shall be subject to disciplinary action by the appropriate health-related licensing board, 
148.17 	and appropriate civil penalties.
148.18 		Subd. 8.Evaluation and reporting. (a) The board shall evaluate the prescription 
148.19 	electronic reporting system to determine if the system is negatively impacting appropriate 
148.20 	prescribing practices of controlled substances. The board may contract with a vendor to 
148.21 	design and conduct the evaluation.
148.22 	(b) The board shall submit the evaluation of the system to the legislature by January
148.23 	July 15, 2011.
148.24 		Subd. 9.Immunity from liability; no requirement to obtain information. (a) A 
148.25 	pharmacist, prescriber, or other dispenser making a report to the program in good faith 
148.26 	under this section is immune from any civil, criminal, or administrative liability, which 
148.27 	might otherwise be incurred or imposed as a result of the report, or on the basis that the 
148.28 	pharmacist or prescriber did or did not seek or obtain or use information from the program.
148.29 	(b) Nothing in this section shall require a pharmacist, prescriber, or other dispenser 
148.30 	to obtain information about a patient from the program, and the pharmacist, prescriber, 
148.31 	or other dispenser, if acting in good faith, is immune from any civil, criminal, or 
148.32 	administrative liability that might otherwise be incurred or imposed for requesting, 
148.33 	receiving, or using information from the program.
148.34 		Subd. 10.Funding. (a) The board may seek grants and private funds from nonprofit 
148.35 	charitable foundations, the federal government, and other sources to fund the enhancement 
148.36 	and ongoing operations of the prescription electronic reporting system established under 
149.1 	this section. Any funds received shall be appropriated to the board for this purpose. The 
149.2 	board may not expend funds to enhance the program in a way that conflicts with this 
149.3 	section without seeking approval from the legislature.
149.4 	(b) The administrative services unit for the health-related licensing boards shall 
149.5 	apportion between the Board of Medical Practice, the Board of Nursing, the Board of 
149.6 	Dentistry, the Board of Podiatric Medicine, the Board of Optometry, and the Board 
149.7 	of Pharmacy an amount to be paid through fees by each respective board. The amount 
149.8 	apportioned to each board shall equal each board's share of the annual appropriation to 
149.9 	the Board of Pharmacy from the state government special revenue fund for operating the 
149.10 	prescription electronic reporting system under this section. Each board's apportioned 
149.11 	share shall be based on the number of prescribers or dispensers that each board identified 
149.12 	in this paragraph licenses as a percentage of the total number of prescribers and dispensers 
149.13 	licensed collectively by these boards. Each respective board may adjust the fees that the 
149.14 	boards are required to collect to compensate for the amount apportioned to each board by 
149.15 	the administrative services unit.

149.16 	Sec. 4. [246.125] CHEMICAL AND MENTAL HEALTH SERVICES 
149.17 	TRANSFORMATION ADVISORY TASK FORCE.
149.18 		Subdivision 1.Establishment. The Chemical and Mental Health Services 
149.19 	Transformation Advisory Task Force is established to make recommendations to the 
149.20 	commissioner of human services and the legislature on the continuum of services needed 
149.21 	to provide individuals with complex conditions including mental illness, chemical 
149.22 	dependency, traumatic brain injury, and developmental disabilities access to quality care 
149.23 	and the appropriate level of care across the state to promote wellness, reduce cost, and 
149.24 	improve efficiency.
149.25 		Subd. 2.Duties. The Chemical and Mental Health Services Transformation 
149.26 	Advisory Task Force shall make recommendations to the commissioner and the legislature 
149.27 	no later than December 15, 2010, on the following:
149.28 	(1) transformation needed to improve service delivery and provide a continuum of 
149.29 	care, such as transition of current facilities, closure of current facilities, or the development 
149.30 	of new models of care, including the redesign of the Anoka-Metro Regional Treatment 
149.31 	Center;
149.32 	(2) gaps and barriers to accessing quality care, system inefficiencies, and cost 
149.33 	pressures;
149.34 	(3) services that are best provided by the state and those that are best provided 
149.35 	in the community;
150.1 	(4) an implementation plan to achieve integrated service delivery across the public, 
150.2 	private, and nonprofit sectors;
150.3 	(5) an implementation plan to ensure that individuals with complex chemical and 
150.4 	mental health needs receive the appropriate level of care to achieve recovery and wellness; 
150.5 	and
150.6 	(6) financing mechanisms that include all possible revenue sources to maximize 
150.7 	federal funding and promote cost efficiencies and sustainability.
150.8 		Subd. 3.Membership. The advisory task force shall be composed of the following, 
150.9 	who will serve at the pleasure of their appointing authority:
150.10 	(1) the commissioner of human services or the commissioner's designee, and two 
150.11 	additional representatives from the department;
150.12 	(2) two legislators appointed by the speaker of the house, one from the minority 
150.13 	and one from the majority;
150.14 	(3) two legislators appointed by the senate rules committee, one from the minority 
150.15 	and one from the majority;
150.16 	(4) one representative appointed by AFSCME Council 5;
150.17 	(5) one representative appointed by the ombudsman for mental health and 
150.18 	developmental disabilities;
150.19 	(6) one representative appointed by the Minnesota Association of Professional 
150.20 	Employees;
150.21 	(7) one representative appointed by the Minnesota Hospital Association;
150.22 	(8) one representative appointed by the Minnesota Nurses Association;
150.23 	(9) one representative appointed by NAMI-MN;
150.24 	(10) one representative appointed by the Mental Health Association of Minnesota;
150.25 	(11) one representative appointed by the Minnesota Association Of Community 
150.26 	Mental Health Programs;
150.27 	(12) one representative appointed by the Minnesota Dental Association;
150.28 	(13) three clients or client family members representing different populations 
150.29 	receiving services from state-operated services, who are appointed by the commissioner;
150.30 	(14) one representative appointed by the chair of the state-operated services 
150.31 	governing board;
150.32 	(15) one representative appointed by the Minnesota Disability Law Center;
150.33 	(16) one representative appointed by the Consumer Survivor Network;
150.34 	(17) one representative appointed by the Association of Residential Resources 
150.35 	in Minnesota;
151.1 	(18) one representative appointed by the Minnesota Council of Child Caring 
151.2 	Agencies;
151.3 	(19) one representative appointed by the Association of Minnesota Counties; and
151.4 	(20) one representative appointed by the Minnesota Pharmacists Association.
151.5 	The commissioner may appoint additional members to reflect stakeholders who 
151.6 	are not represented above.
151.7 		Subd. 4.Administration. The commissioner shall convene the first meeting of the 
151.8 	advisory task force and shall provide administrative support and staff.
151.9 		Subd. 5.Recommendations. The advisory task force must report its 
151.10 	recommendations to the commissioner and to the legislature no later than December 
151.11 	15, 2010.
151.12 		Subd. 6.Member requirement. The commissioner shall provide per diem and 
151.13 	travel expenses pursuant to section 256.01, subdivision 6, for task force members who 
151.14 	are consumers or family members and whose participation on the task force is not as a 
151.15 	paid representative of any agency, organization, or association. Notwithstanding section 
151.16 	15.059, other task force members are not eligible for per diem or travel reimbursement.

151.17 	Sec. 5. [246.128] NOTIFICATION TO LEGISLATURE REQUIRED.
151.18 	The commissioner shall notify the chairs and ranking minority members of 
151.19 	the relevant legislative committees regarding the redesign, closure, or relocation of 
151.20 	state-operated services programs. The notification must include the advice of the Chemical 
151.21 	and Mental Health Services Transformation Advisory Task Force under section 246.125.

151.22 	Sec. 6. [246.129] LEGISLATIVE APPROVAL REQUIRED.
151.23 	If the closure of a state-operated facility is proposed, and the department and 
151.24 	respective bargaining units fail to arrive at a mutually agreed upon solution to transfer 
151.25 	affected state employees to other state jobs, the closure of the facility requires legislative 
151.26 	approval. This does not apply to state-operated enterprise services.

151.27 	Sec. 7. Minnesota Statutes 2008, section 246.18, is amended by adding a subdivision 
151.28 	to read:
151.29 		Subd. 8.State-operated services account. The state-operated services account is 
151.30 	established in the special revenue fund. Revenue generated by new state-operated services 
151.31 	listed under this section established after July 1, 2010, that are not enterprise activities must 
151.32 	be deposited into the state-operated services account, unless otherwise specified in law:
151.33 	(1) intensive residential treatment services;
152.1 	(2) foster care services; and
152.2 	(3) psychiatric extensive recovery treatment services.

152.3 	Sec. 8. Minnesota Statutes 2008, section 254B.01, subdivision 2, is amended to read:
152.4 		Subd. 2.American Indian. For purposes of services provided under section 
152.5 	254B.09, subdivision 7 8, "American Indian" means a person who is a member of an 
152.6 	Indian tribe, and the commissioner shall use the definitions of "Indian" and "Indian tribe" 
152.7 	and "Indian organization" provided in Public Law 93-638. For purposes of services 
152.8 	provided under section 254B.09, subdivision 4 6, "American Indian" means a resident of 
152.9 	federally recognized tribal lands who is recognized as an Indian person by the federally 
152.10 	recognized tribal governing body.  

152.11 	Sec. 9. Minnesota Statutes 2008, section 254B.02, subdivision 1, is amended to read:
152.12 		Subdivision 1.Chemical dependency treatment allocation. The chemical 
152.13 	dependency funds appropriated for allocation treatment appropriation  shall be placed in 
152.14 	a special revenue account. The commissioner shall annually transfer funds from the 
152.15 	chemical dependency fund to pay for operation of the drug and alcohol abuse normative 
152.16 	evaluation system and to pay for all costs incurred by adding two positions for licensing 
152.17 	of chemical dependency treatment and rehabilitation programs located in hospitals for 
152.18 	which funds are not otherwise appropriated. Six percent of the remaining money must 
152.19 	be reserved for tribal allocation under section 254B.09, subdivisions 4 and 5. The 
152.20 	commissioner shall annually divide the money available in the chemical dependency 
152.21 	fund that is not held in reserve by counties from a previous allocation, or allocated to the 
152.22 	American Indian chemical dependency tribal account. Six percent of the remaining money 
152.23 	must be reserved for the nonreservation American Indian chemical dependency allocation 
152.24 	for treatment of American Indians by eligible vendors under section 254B.05, subdivision 
152.25 	1. The remainder of the money must be allocated among the counties according to the 
152.26 	following formula, using state demographer data and other data sources determined by 
152.27 	the commissioner: 
152.28 	(a) For purposes of this formula, American Indians and children under age 14 are 
152.29 	subtracted from the population of each county to determine the restricted population.
152.30 	(b) The amount of chemical dependency fund expenditures for entitled persons for 
152.31 	services not covered by prepaid plans governed by section 256B.69 in the previous year is 
152.32 	divided by the amount of chemical dependency fund expenditures for entitled persons for 
152.33 	all services to determine the proportion of exempt service expenditures for each county. 
153.1 	(c) The prepaid plan months of eligibility is multiplied by the proportion of exempt 
153.2 	service expenditures to determine the adjusted prepaid plan months of eligibility for 
153.3 	each county.
153.4 	(d) The adjusted prepaid plan months of eligibility is added to the number of 
153.5 	restricted population fee for service months of eligibility for the Minnesota family 
153.6 	investment program, general assistance, and medical assistance and divided by the county 
153.7 	restricted population to determine county per capita months of covered service eligibility.
153.8 	(e) The number of adjusted prepaid plan months of eligibility for the state is added 
153.9 	to the number of fee for service months of eligibility for the Minnesota family investment 
153.10 	program, general assistance, and medical assistance for the state restricted population and 
153.11 	divided by the state restricted population to determine state per capita months of covered 
153.12 	service eligibility.
153.13 	(f) The county per capita months of covered service eligibility is divided by the 
153.14 	state per capita months of covered service eligibility to determine the county welfare 
153.15 	caseload factor.
153.16 	(g) The median married couple income for the most recent three-year period 
153.17 	available for the state is divided by the median married couple income for the same period 
153.18 	for each county to determine the income factor for each county.
153.19 	(h) The county restricted population is multiplied by the sum of the county welfare 
153.20 	caseload factor and the county income factor to determine the adjusted population.
153.21 	(i) $15,000 shall be allocated to each county.
153.22 	(j) The remaining funds shall be allocated proportional to the county adjusted 
153.23 	population  in the special revenue account must be used according to the requirements 
153.24 	in this chapter.

153.25 	Sec. 10. Minnesota Statutes 2008, section 254B.02, subdivision 5, is amended to read:
153.26 		Subd. 5.Administrative adjustment. The commissioner may make payments to 
153.27 	local agencies from money allocated under this section to support administrative activities 
153.28 	under sections 254B.03 and 254B.04. The administrative payment must not exceed 
153.29 	the lesser of: (1) five percent of the first $50,000, four percent of the next $50,000, and 
153.30 	three percent of the remaining payments for services from the allocation special revenue 
153.31 	account according to subdivision 1; or (2) the local agency administrative payment for 
153.32 	the fiscal year ending June 30, 2009, adjusted in proportion to the statewide change in 
153.33 	the appropriation for this chapter. 

153.34 	Sec. 11. Minnesota Statutes 2008, section 254B.03, subdivision 4, is amended to read:
154.1 		Subd. 4.Division of costs. Except for services provided by a county under 
154.2 	section 254B.09, subdivision 1, or services provided under section 256B.69 or 256D.03, 
154.3 	subdivision 4, paragraph (b), the county shall, out of local money, pay the state for 
154.4 	15 16.14 percent of the cost of chemical dependency services, including those services 
154.5 	provided to persons eligible for medical assistance under chapter 256B and general 
154.6 	assistance medical care under chapter 256D. Counties may use the indigent hospitalization 
154.7 	levy for treatment and hospital payments made under this section. Fifteen 16.14 percent 
154.8 	of any state collections from private or third-party pay, less 15 percent of for the cost 
154.9 	of payment and collections, must be distributed to the county that paid for a portion of 
154.10 	the treatment under this section. If all funds allocated according to section 254B.02 are 
154.11 	exhausted by a county and the county has met or exceeded the base level of expenditures 
154.12 	under section 254B.02, subdivision 3, the county shall pay the state for 15 percent of the 
154.13 	costs paid by the state under this section. The commissioner may refuse to pay state funds 
154.14 	for services to persons not eligible under section 254B.04, subdivision 1, if the county 
154.15 	financially responsible for the persons has exhausted its allocation. 

154.16 	Sec. 12. Minnesota Statutes 2008, section 254B.05, subdivision 4, is amended to read:
154.17 		Subd. 4.Regional treatment centers. Regional treatment center chemical 
154.18 	dependency treatment units are eligible vendors. The commissioner may expand the 
154.19 	capacity of chemical dependency treatment units beyond the capacity funded by direct 
154.20 	legislative appropriation to serve individuals who are referred for treatment by counties 
154.21 	and whose treatment will be paid for with a county's allocation under section 254B.02 by 
154.22 	funding under this chapter or other funding sources. Notwithstanding the provisions of 
154.23 	sections 254B.03 to 254B.041, payment for any person committed at county request to 
154.24 	a regional treatment center under chapter 253B for chemical dependency treatment and 
154.25 	determined to be ineligible under the chemical dependency consolidated treatment fund, 
154.26 	shall become the responsibility of the county.  

154.27 	Sec. 13. Minnesota Statutes 2008, section 254B.06, subdivision 2, is amended to read:
154.28 		Subd. 2.Allocation of collections. The commissioner shall allocate all federal 
154.29 	financial participation collections to the reserve fund under section 254B.02, subdivision 3
154.30 	a special revenue account. The commissioner shall retain 85 allocate 83.86 percent of 
154.31 	patient payments and third-party payments to the special revenue account and allocate 
154.32 	the collections to the treatment allocation for the county that is financially responsible 
154.33 	for the person. Fifteen 16.14 percent of patient and third-party payments must be paid
154.34 	to the county financially responsible for the patient. Collections for patient payment and 
155.1 	third-party payment for services provided under section 254B.09 shall be allocated to the 
155.2 	allocation of the tribal unit which placed the person. Collections of federal financial 
155.3 	participation for services provided under section 254B.09 shall be allocated to the tribal 
155.4 	reserve account under section 254B.09, subdivision 5.

155.5 	Sec. 14. Minnesota Statutes 2008, section 254B.09, subdivision 8, is amended to read:
155.6 		Subd. 8.Payments to improve services to American Indians. The commissioner 
155.7 	may set rates for chemical dependency services to American Indians according to the 
155.8 	American Indian Health Improvement Act, Public Law 94-437, for eligible vendors. 
155.9 	These rates shall supersede rates set in county purchase of service agreements when 
155.10 	payments are made on behalf of clients eligible according to Public Law 94-437.

155.11 	Sec. 15. [254B.13] PILOT PROJECTS; CHEMICAL HEALTH CARE.
155.12 		Subdivision 1.Authorization for pilot projects. The commissioner may approve 
155.13 	and implement pilot projects developed under the planning process required under Laws 
155.14 	2009, chapter 79, article 7, section 26, to provide alternatives to and enhance coordination 
155.15 	of the delivery of chemical health services required under section 254B.03.
155.16 		Subd. 2.Program design and implementation. (a) The commissioner and counties 
155.17 	participating in the pilot projects shall continue to work in partnership to refine and 
155.18 	implement the pilot projects initiated under Laws 2009, chapter 79, article 7, section 26.
155.19 	(b) The commissioner and counties participating in the pilot projects shall 
155.20 	complete the planning phase by June 30, 2010, and, if approved by the commissioner for 
155.21 	implementation, enter into agreements governing the operation of the pilot projects with 
155.22 	implementation scheduled no earlier than July 1, 2010.
155.23 		Subd. 3.Program evaluation.  The commissioner shall evaluate pilot projects under 
155.24 	this section and report the results of the evaluation to the chairs and ranking minority 
155.25 	members of the legislative committees with jurisdiction over chemical health issues by 
155.26 	January 15, 2013. Evaluation of the pilot projects must be based on outcome evaluation 
155.27 	criteria negotiated with the pilot projects prior to implementation.
155.28 		Subd. 4.Notice of project discontinuation. Each county's participation in the 
155.29 	pilot project may be discontinued for any reason by the county or the commissioner of 
155.30 	human services after 30 days' written notice to the other party. Any unspent funds held 
155.31 	for the exiting county's pro rata share in the special revenue fund under the authority in 
155.32 	subdivision 5, paragraph (d), shall be transferred to the consolidated chemical dependency 
155.33 	treatment fund following discontinuation of the pilot project.
156.1 		Subd. 5.Duties of commissioner. (a) Notwithstanding any other provisions in 
156.2 	this chapter, the commissioner may authorize pilot projects to use chemical dependency 
156.3 	treatment funds to pay for nontreatment pilot services:
156.4 	(1) in addition to those authorized under section 254B.03, subdivision 2, paragraph 
156.5 	(a); and
156.6 	(2) by vendors in addition to those authorized under section 254B.05 when not 
156.7 	providing chemical dependency treatment services.
156.8 	(b) For purposes of this section, "nontreatment pilot services" include navigator 
156.9 	services, peer support, family engagement and support, housing support, rent subsidies, 
156.10 	supported employment, and independent living skills.
156.11 	(c) State expenditures for chemical dependency services and nontreatment pilot 
156.12 	services provided by or through the pilot projects must not be greater than the chemical 
156.13 	dependency treatment fund expected share of forecasted expenditures in the absence of 
156.14 	the pilot projects. The commissioner may restructure the schedule of payments between 
156.15 	the state and participating counties under the local agency share and division of cost 
156.16 	provisions under section 254B.03, subdivisions 3 and 4, as necessary to facilitate the 
156.17 	operation of the pilot projects.
156.18 	(d) To the extent that state fiscal year expenditures within a pilot project are less 
156.19 	than the expected share of forecasted expenditures in the absence of the pilot projects, 
156.20 	the commissioner shall deposit the unexpended funds in a separate account within the 
156.21 	consolidated chemical dependency treatment fund, and make these funds available for 
156.22 	expenditure by the pilot projects the following year. To the extent that treatment and 
156.23 	nontreatment pilot services expenditures within the pilot project exceed the amount 
156.24 	expected in the absence of the pilot projects, the pilot project county or counties are 
156.25 	responsible for the portion of nontreatment pilot services expenditures in excess of the 
156.26 	otherwise expected share of forecasted expenditures.
156.27 	(e) The commissioner may waive administrative rule requirements that are 
156.28 	incompatible with the implementation of the pilot project, except that any chemical 
156.29 	dependency treatment funded under this section must continue to be provided by a 
156.30 	licensed treatment provider.
156.31 	(f) The commissioner shall not approve or enter into any agreement related to pilot 
156.32 	projects authorized under this section that puts current or future federal funding at risk.
156.33 		Subd. 6.Duties of county board. The county board, or other county entity that is 
156.34 	approved to administer a pilot project, shall:
156.35 	(1) administer the pilot project in a manner consistent with the objectives described 
156.36 	in subdivision 2 and the planning process in subdivision 5;
157.1 	(2) ensure that no one is denied chemical dependency treatment services for which 
157.2 	they would otherwise be eligible under section 254A.03, subdivision 3; and
157.3 	(3) provide the commissioner with timely and pertinent information as negotiated 
157.4 	in agreements governing operation of the pilot projects.

157.5 	Sec. 16. Minnesota Statutes 2009 Supplement, section 517.08, subdivision 1b, is 
157.6 	amended to read:
157.7 		Subd. 1b.Term of license; fee; premarital education. (a) The local registrar 
157.8 	shall examine upon oath the parties applying for a license relative to the legality of the 
157.9 	contemplated marriage. If one party is unable to appear in person, the party appearing 
157.10 	may complete the absent applicant's information. The local registrar shall provide a copy 
157.11 	of the marriage application to the party who is unable to appear, who must verify the 
157.12 	accuracy of the party's information in a notarized statement. The marriage license must 
157.13 	not be released until the verification statement has been received by the local registrar. If 
157.14 	at the expiration of a five-day period, on being satisfied that there is no legal impediment 
157.15 	to it, including the restriction contained in section 259.13, the local registrar shall issue 
157.16 	the license, containing the full names of the parties before and after marriage, and county 
157.17 	and state of residence, with the county seal attached, and make a record of the date of 
157.18 	issuance. The license shall be valid for a period of six months. Except as provided in 
157.19 	paragraph (c), the local registrar shall collect from the applicant a fee of $110 $115 for 
157.20 	administering the oath, issuing, recording, and filing all papers required, and preparing 
157.21 	and transmitting to the state registrar of vital statistics the reports of marriage required 
157.22 	by this section. If the license should not be used within the period of six months due to 
157.23 	illness or other extenuating circumstances, it may be surrendered to the local registrar for 
157.24 	cancellation, and in that case a new license shall issue upon request of the parties of the 
157.25 	original license without fee. A local registrar who knowingly issues or signs a marriage 
157.26 	license in any manner other than as provided in this section shall pay to the parties 
157.27 	aggrieved an amount not to exceed $1,000.
157.28 	(b) In case of emergency or extraordinary circumstances, a judge of the district court 
157.29 	of the county in which the application is made may authorize the license to be issued at 
157.30 	any time before expiration of the five-day period required under paragraph (a). A waiver 
157.31 	of the five-day waiting period must be in the following form:
157.32 	STATE OF MINNESOTA, COUNTY OF .................... (insert county name)
157.33 	APPLICATION FOR WAIVER OF MARRIAGE LICENSE WAITING PERIOD:
157.34 	................................................................................. (legal names of the applicants)
157.35 	Represent and state as follows:
158.1 	That on ......................... (date of application) the applicants applied to the local 
158.2 	registrar of the above-named county for a license to marry.
158.3 	That it is necessary that the license be issued before the expiration of five days 
158.4 	from the date of the application by reason of the following: (insert reason for requesting 
158.5 	waiver of waiting period)
158.6 	.............................................................................................................
158.7 	.............................................................................................................
158.8 	.............................................................................................................
158.9 	WHEREAS, the applicants request that the judge waive the required five-day 
158.10 	waiting period and the local registrar be authorized and directed to issue the marriage 
158.11 	license immediately.
158.12 	Date: .............................
158.13 	.......................................................................................
158.14 	.......................................................................................
158.15 	(Signatures of applicants)
158.16 	Acknowledged before me on this ....... day of .................... .
158.17 	..........................................
158.18 	NOTARY PUBLIC
158.19 	COURT ORDER AND AUTHORIZATION:
158.20 	STATE OF MINNESOTA, COUNTY OF .................... (insert county name)
158.21 	After reviewing the above application, I am satisfied that an emergency or 
158.22 	extraordinary circumstance exists that justifies the issuance of the marriage license before 
158.23 	the expiration of five days from the date of the application. IT IS HEREBY ORDERED 
158.24 	that the local registrar is authorized and directed to issue the license forthwith.
158.25 	.....................................................
158.26 	................................ (judge of district court)
158.27 	................................ (date).
158.28 	(c) The marriage license fee for parties who have completed at least 12 hours of 
158.29 	premarital education is $40. In order to qualify for the reduced license fee, the parties 
158.30 	must submit at the time of applying for the marriage license a signed, dated, and notarized 
158.31 	statement from the person who provided the premarital education on their letterhead 
158.32 	confirming that it was received. The premarital education must be provided by a licensed 
158.33 	or ordained minister or the minister's designee, a person authorized to solemnize marriages 
158.34 	under section 517.18, or a person authorized to practice marriage and family therapy under 
158.35 	section 148B.33. The education must include the use of a premarital inventory and the 
158.36 	teaching of communication and conflict management skills.
159.1 	(d) The statement from the person who provided the premarital education under 
159.2 	paragraph (b) must be in the following form:
159.3 	"I, .......................... (name of educator), confirm that .......................... (names of 
159.4 	both parties) received at least 12 hours of premarital education that included the use of a 
159.5 	premarital inventory and the teaching of communication and conflict management skills. 
159.6 	I am a licensed or ordained minister, a person authorized to solemnize marriages under 
159.7 	Minnesota Statutes, section 517.18, or a person licensed to practice marriage and family 
159.8 	therapy under Minnesota Statutes, section 148B.33."
159.9 	The names of the parties in the educator's statement must be identical to the legal 
159.10 	names of the parties as they appear in the marriage license application. Notwithstanding 
159.11 	section 138.17, the educator's statement must be retained for seven years, after which 
159.12 	time it may be destroyed.
159.13 	(e) If section 259.13 applies to the request for a marriage license, the local registrar 
159.14 	shall grant the marriage license without the requested name change. Alternatively, the local 
159.15 	registrar may delay the granting of the marriage license until the party with the conviction:
159.16 	(1) certifies under oath that 30 days have passed since service of the notice for a 
159.17 	name change upon the prosecuting authority and, if applicable, the attorney general and no 
159.18 	objection has been filed under section 259.13; or
159.19 	(2) provides a certified copy of the court order granting it. The parties seeking the 
159.20 	marriage license shall have the right to choose to have the license granted without the 
159.21 	name change or to delay its granting pending further action on the name change request.

159.22 	Sec. 17. Minnesota Statutes 2008, section 517.08, subdivision 1c, as amended by Laws 
159.23 	2010, chapter 200, article 1, section 17, is amended to read:
159.24 		Subd. 1c.Disposition of license fee. (a) Of the marriage license fee collected 
159.25 	pursuant to subdivision 1b, paragraph (a), $25 must be retained by the county. The 
159.26 	local registrar must pay $85 $90 to the commissioner of management and budget to be 
159.27 	deposited as follows:
159.28 	(1) $55 in the general fund;
159.29 	(2) $3 in the state government special revenue fund to be appropriated to the 
159.30 	commissioner of public safety for parenting time centers under section 119A.37;
159.31 	(3) $2 in the special revenue fund to be appropriated to the commissioner of health 
159.32 	for developing and implementing the MN ENABL program under section 145.9255; and
159.33 	(4) $25 in the special revenue fund is appropriated to the commissioner of 
159.34 	employment and economic development for the displaced homemaker program under 
159.35 	section 116L.96; and
160.1 	(5) $5 in the special revenue fund, which is appropriated to the Board of Regents 
160.2 	of the University of Minnesota for the Minnesota couples on the brink project under 
160.3 	section 137.32.
160.4 	(b) Of the $40 fee under subdivision 1b, paragraph (b), $25 must be retained by the 
160.5 	county. The local registrar must pay $15 to the commissioner of management and budget 
160.6 	to be deposited as follows:
160.7 	(1) $5 as provided in paragraph (a), clauses (2) and (3); and
160.8 	(2) $10 in the special revenue fund is appropriated to the commissioner of 
160.9 	employment and economic development for the displaced homemaker program under 
160.10 	section 116L.96.

160.11 	Sec. 18. Laws 2009, chapter 79, article 3, section 18, is amended to read:
160.12 	Sec. 18. REQUIRING THE DEVELOPMENT OF COMMUNITY-BASED 
160.13 	MENTAL HEALTH SERVICES FOR PATIENTS COMMITTED TO THE 
160.14 	ANOKA-METRO REGIONAL TREATMENT CENTER.
 160.15 	In consultation with community partners, the commissioner of human services
160.16 	The Chemical and Mental Health Services Transformation Advisory Task Force shall 
160.17 	develop recommend an array of community-based services in the metro area to transform 
160.18 	the current services now provided to patients at the Anoka-Metro Regional Treatment 
160.19 	Center. The community-based services may be provided in facilities with 16 or fewer 
160.20 	beds, and must provide the appropriate level of care for the patients being admitted to 
160.21 	the facilities established in partnership with private and public hospital organizations, 
160.22 	community mental health centers and other mental health community services providers, 
160.23 	and community partnerships, and must be staffed by state employees. The planning 
160.24 	for this transition must be completed by October 1, 2009 2010, with an initial a  report 
160.25 	detailing the transition plan, services that will be provided, including incorporating peer 
160.26 	specialists where appropriate, the location of the services, and the number of patients 
160.27 	that will be served, to the committee chairs of health and human services by November 
160.28 	30, 2009, and a semiannual report on progress until the transition is completed. The 
160.29 	commissioner of human services shall solicit interest from stakeholders and potential 
160.30 	community partners 2010. The individuals working inemployed by the community-based 
160.31 	services facilities under this section are state employees supervised by the commissioner 
160.32 	of human services. No layoffs shall occur as a result of restructuring under this section.
160.33 	Savings generated as a result of transitioning patients from the Anoka-Metro Regional 
160.34 	Treatment Center to community-based services may be used to fund supportive housing 
160.35 	staffed by state employees.

161.1 	Sec. 19. REPORT ON HUMAN SERVICES FISCAL NOTES.
 161.2 	The commissioner of management and budget shall issue a report to the legislature 
161.3 	no later than November 15, 2010, making recommendations for improving the preparation 
161.4 	and delivery of fiscal notes under Minnesota Statutes, section 3.98, relating to human 
161.5 	services. The report shall consider: (1) the establishment of an independent fiscal 
161.6 	note office in the human services department and (2) transferring the responsibility for 
161.7 	preparing human services fiscal notes to the legislature. The report must include detailed 
161.8 	information regarding the financial costs, staff resources, training, access to information, 
161.9 	and data protection issues relative to the preparation of human services fiscal notes. The 
161.10 	report shall describe methods and procedures used by other states to insure independence 
161.11 	and accuracy of fiscal estimates on legislative proposals for changes in human services.

161.12 	Sec. 20. PRESCRIPTION DRUG WASTE REDUCTION.
 161.13 	The Minnesota Board of Pharmacy, in cooperation with the commissioners of 
161.14 	human services, pollution control, health, veterans affairs, and corrections, shall study 
161.15 	prescription drug waste reduction techniques and technologies applicable to long-term 
161.16 	care facilities, veterans nursing homes, and correctional facilities. In conducting the 
161.17 	study, the commissioners shall consult with the Minnesota Pharmacists Association, the 
161.18 	University of Minnesota College of Pharmacy, University of Minnesota's Minnesota 
161.19 	Technical Assistance Project, consumers, long-term care providers, and other interested 
161.20 	parties. The board shall evaluate the extent to which new prescription drug waste reduction 
161.21 	techniques and technologies can reduce the amount of prescription drugs that enter the 
161.22 	waste stream and reduce state prescription drug costs. The techniques and technologies 
161.23 	studied must include, but are not limited to, daily, weekly, and automated dose dispensing. 
161.24 	The study must provide an estimate of the cost of adopting these and other techniques 
161.25 	and technologies, and an estimate of waste reduction and state prescription drug savings 
161.26 	that would result from adoption. The study must also evaluate methods of encouraging 
161.27 	the adoption of effective drug waste reduction techniques and technologies. The board 
161.28 	shall present recommendations on the adoption of new prescription drug waste reduction 
161.29 	techniques and technologies to the legislature by December 15, 2011.

161.30 	Sec. 21. VETERINARY PRACTICE AND CONTROLLED SUBSTANCE 
161.31 	ABUSE STUDY.
 161.32 	The Board of Pharmacy, in consultation with the Prescription Electronic Reporting 
161.33 	Advisory Committee and the Board of Veterinary Medical Practice, shall study the issue 
161.34 	of the diversion of controlled substances from veterinary practice and report to the chairs 
162.1 	and ranking minority members of the senate health and human services policy and finance 
162.2 	division and the house of representatives health care and human services policy and 
162.3 	finance division by December 15, 2011, on recommendations to include veterinarians in 
162.4 	the prescription electronic reporting system in Minnesota Statutes, section 152.126.

162.5 	Sec. 22. DATA COLLECTION ON HEALTH DISPARITIES.
 162.6 		Subdivision 1.Inventory. The commissioners of health and human services shall 
162.7 	conduct an inventory on the health-related data collected by each respective department 
162.8 	including, but not limited to, health care programs and activities, vital statistics, disease 
162.9 	surveillance registries and screenings, and health outcome measurements.
162.10 	The inventory must review the categories of data that are collected, describe the 
162.11 	methods of collecting, organizing, and reporting data relating to race, ethnicity, country of 
162.12 	origin, primary language, tribal enrollment status, and socioeconomic status, and specify 
162.13 	whether the data being collected in these categories is currently required.
162.14 		Subd. 2.Review. (a) Upon completion of the inventory in subdivision 1, the 
162.15 	commissioners of health and human services shall consult with representatives of culturally 
162.16 	based community groups, community health boards, tribal governments, hospitals, and 
162.17 	health plan companies to review the compiled inventory and make recommendations on:
162.18 	(1) whether the data currently being collected is sufficient to identify and describe 
162.19 	health disparities for particular communities or if the collection of additional types and 
162.20 	categories of data is necessary in order to better identify health disparities and to facilitate 
162.21 	efforts to reduce these disparities;
162.22 	(2) if additional types and categories of data collection is determined necessary, what 
162.23 	additional types and categories should be collected and in what areas;
162.24 	(3) whether there is a need to aggregate data to make data in the categories identified 
162.25 	in subdivision 1 more accessible to community groups, researchers, and to the legislature; 
162.26 	and
162.27 	(4) other ways to improve data collection efforts in order to ensure the collection 
162.28 	of high-quality, reliable data in clauses (1) to (3) that will ensure accurate research and 
162.29 	the ability to create measurable program outcomes in order to facilitate public policy 
162.30 	decisions regarding the elimination of health disparities.
162.31 	(b) In making recommendations, the work group shall consider national and state 
162.32 	standardized data classification systems, as well as federal or state requirements for 
162.33 	collection of certain data based on predetermined classification systems that may impact 
162.34 	some data collection efforts.
163.1 		Subd. 3.Report. By January 15, 2011, the commissioners of health and human 
163.2 	services shall submit to the chairs and ranking minority members of the legislative 
163.3 	committees and divisions with jurisdiction over health and human services the inventory 
163.4 	compiled in subdivision 1 and the recommendations developed in subdivision 2.

163.5 	Sec. 23.  REPEALER.
 163.6 	(a) Minnesota Statutes 2008, sections 254B.02, subdivisions 2, 3, and 4; and 
163.7 	254B.09, subdivisions 4, 5, and 7, are repealed.
163.8 	(b) Laws 2009, chapter 79, article 7, section 26, subdivision 3, is repealed.

163.9 	Sec. 24. EFFECTIVE DATE.
 163.10 	Sections 8 to 14 and 22 are effective for claims paid on or after July 1, 2010.

163.11 	ARTICLE 20
163.12 	DEPARTMENT OF HEALTH

163.13 	Section 1. Minnesota Statutes 2008, section 13.3806, subdivision 13, is amended to 
163.14 	read:
163.15 		Subd. 13.Traumatic injury. Data on individuals with a brain or spinal injury or 
163.16 	who sustain major trauma that are collected by the commissioner of health are classified 
163.17 	under section sections 144.6071 and144.665. 

163.18 	Sec. 2. Minnesota Statutes 2008, section 62D.08, is amended by adding a subdivision 
163.19 	to read:
163.20 		Subd. 7.Consistent administrative expenses and investment income reporting.
 163.21 	(a) Every health maintenance organization must directly allocate administrative expenses 
163.22 	to specific lines of business or products when such information is available. Remaining 
163.23 	expenses that cannot be directly allocated must be allocated based on other methods, as 
163.24 	recommended by the Advisory Group on Administrative Expenses. Health maintenance 
163.25 	organizations must submit this information, including administrative expenses for dental 
163.26 	services, using the reporting template provided by the commissioner of health.
163.27 	(b) Every health maintenance organization must allocate investment income based 
163.28 	on cumulative net income over time by business line or product and must submit this 
163.29 	information, including investment income for dental services, using the reporting template 
163.30 	provided by the commissioner of health.

163.31 	EFFECTIVE DATE. This section is effective January 1, 2013.

164.1 	Sec. 3. [62D.31] ADVISORY GROUP ON ADMINISTRATIVE EXPENSES.
164.2 		Subdivision 1.Establishment. The Advisory Group on Administrative Expenses 
164.3 	is established to make recommendations on the development of consistent guidelines 
164.4 	and reporting requirements, including development of a reporting template, for health 
164.5 	maintenance organizations and county-based purchasing plans that participate in publicly 
164.6 	funded programs. 
164.7 		Subd. 2.Membership. The membership of the advisory group shall be comprised 
164.8 	of the following, who serve at the pleasure of their appointing authority:
164.9 	(1) the commissioner of health or the commissioner's designee;
164.10 	(2) the commissioner of human services or the commissioner's designee;
164.11 	(3) the commissioner of commerce or the commissioner's designee; and
164.12 	(4) representatives of health maintenance organizations and county-based purchasers 
164.13 	appointed by the commissioner of health.
164.14 		Subd. 3.Administration. The commissioner of health shall convene the first 
164.15 	meeting of the advisory group by December 1, 2010, and shall provide administrative 
164.16 	support and staff. The commissioner of health may contract with a consultant to provide 
164.17 	professional assistance and expertise to the advisory group.
164.18 		Subd. 4.Recommendations. The Advisory Group on Administrative Expenses 
164.19 	must report its recommendations, including any proposed legislation necessary to 
164.20 	implement the recommendations, to the commissioner of health and to the chairs and 
164.21 	ranking minority members of the legislative committees and divisions with jurisdiction 
164.22 	over health policy and finance by February 15, 2012.
164.23 		Subd. 5.Expiration. This section expires after submission of the report required 
164.24 	under subdivision 4 or June 30, 2012, whichever is sooner.

164.25 	Sec. 4. Minnesota Statutes 2008, section 62Q.19, subdivision 1, is amended to read:
164.26 		Subdivision 1.Designation. (a) The commissioner shall designate essential 
164.27 	community providers. The criteria for essential community provider designation shall be 
164.28 	the following:
164.29 	(1) a demonstrated ability to integrate applicable supportive and stabilizing services 
164.30 	with medical care for uninsured persons and high-risk and special needs populations, 
164.31 	underserved, and other special needs populations; and
164.32 	(2) a commitment to serve low-income and underserved populations by meeting the 
164.33 	following requirements:
164.34 	(i) has nonprofit status in accordance with chapter 317A;
165.1 	(ii) has tax exempt status in accordance with the Internal Revenue Service Code, 
165.2 	section 501(c)(3);
165.3 	(iii) charges for services on a sliding fee schedule based on current poverty income 
165.4 	guidelines; and
165.5 	(iv) does not restrict access or services because of a client's financial limitation;
165.6 	(3) status as a local government unit as defined in section 62D.02, subdivision 11, a 
165.7 	hospital district created or reorganized under sections 447.31 to 447.37, an Indian tribal 
165.8 	government, an Indian health service unit, or a community health board as defined in 
165.9 	chapter 145A;  
165.10 	(4) a former state hospital that specializes in the treatment of cerebral palsy, spina 
165.11 	bifida, epilepsy, closed head injuries, specialized orthopedic problems, and other disabling 
165.12 	conditions; or
165.13 	(5) a sole community hospital. For these rural hospitals, the essential community 
165.14 	provider designation applies to all health services provided, including both inpatient and 
165.15 	outpatient services. For purposes of this section, "sole community hospital" means a 
165.16 	rural hospital that:
165.17 	(i) is eligible to be classified as a sole community hospital according to Code 
165.18 	of Federal Regulations, title 42, section 412.92, or is located in a community with a 
165.19 	population of less than 5,000 and located more than 25 miles from a like hospital currently 
165.20 	providing acute short-term services;  
165.21 	(ii) has experienced net operating income losses in two of the previous three 
165.22 	most recent consecutive hospital fiscal years for which audited financial information is 
165.23 	available; and
165.24 	(iii) consists of 40 or fewer licensed beds; or
165.25 	(6) a birth center licensed under section 144.615.
165.26 	(b) Prior to designation, the commissioner shall publish the names of all applicants 
165.27 	in the State Register. The public shall have 30 days from the date of publication to submit 
165.28 	written comments to the commissioner on the application. No designation shall be made 
165.29 	by the commissioner until the 30-day period has expired.
165.30 	(c) The commissioner may designate an eligible provider as an essential community 
165.31 	provider for all the services offered by that provider or for specific services designated by 
165.32 	the commissioner.
165.33 	(d) For the purpose of this subdivision, supportive and stabilizing services include at 
165.34 	a minimum, transportation, child care, cultural, and linguistic services where appropriate.

166.1 	Sec. 5. Minnesota Statutes 2008, section 144.05, is amended by adding a subdivision 
166.2 	to read:
166.3 		Subd. 5.Firearms data. Notwithstanding any law to the contrary, the commissioner 
166.4 	of health is prohibited from collecting data on individuals regarding lawful firearm 
166.5 	ownership in the state or data related to an individual's right to carry a weapon under 
166.6 	section 624.714.

166.7 	Sec. 6. Minnesota Statutes 2008, section 144.226, subdivision 3, is amended to read:
166.8 		Subd. 3.Birth record surcharge. (a) In addition to any fee prescribed under 
166.9 	subdivision 1, there shall be a nonrefundable surcharge of $3 for each certified birth or 
166.10 	stillbirth record and for a certification that the vital record cannot be found. The local or 
166.11 	state registrar shall forward this amount to the commissioner of management and budget 
166.12 	for deposit into the account for the children's trust fund for the prevention of child abuse 
166.13 	established under section 256E.22. This surcharge shall not be charged under those 
166.14 	circumstances in which no fee for a certified birth or stillbirth record is permitted under 
166.15 	subdivision 1, paragraph (a). Upon certification by the commissioner of management and 
166.16 	budget that the assets in that fund exceed $20,000,000, this surcharge shall be discontinued.
166.17 	(b) In addition to any fee prescribed under subdivision 1, there shall be a 
166.18 	nonrefundable surcharge of $10 for each certified birth record. The local or state registrar 
166.19 	shall forward this amount to the commissioner of management and budget for deposit in 
166.20 	the general fund. This surcharge shall not be charged under those circumstances in which 
166.21 	no fee for a certified birth record is permitted under subdivision 1, paragraph (a).

166.22 	EFFECTIVE DATE. This section is effective July 1, 2010.

166.23 	Sec. 7. Minnesota Statutes 2008, section 144.293, subdivision 4, is amended to read:
166.24 		Subd. 4.Duration of consent. Except as provided in this section, a consent is 
166.25 	valid for one year or for a lesser period specified in the consent or for a different period 
166.26 	provided by law.

166.27 	Sec. 8. Minnesota Statutes 2008, section 144.603, is amended to read:
166.28 	144.603 STATEWIDE TRAUMA SYSTEM CRITERIA.
166.29 		Subdivision 1.Criteria established. The commissioner shall adopt criteria to 
166.30 	ensure that severely injured people are promptly transported and treated at trauma 
166.31 	hospitals appropriate to the severity of injury. Minimum criteria shall address emergency 
166.32 	medical service trauma triage and transportation guidelines as approved under section 
167.1 	144E.101, subdivision 14, designation of hospitals as trauma hospitals, interhospital 
167.2 	transfers, a trauma registry, and a trauma system governance structure.
167.3 		Subd. 2.Basis; verification. The commissioner shall base the establishment, 
167.4 	implementation, and modifications to the criteria under subdivision 1 on the 
167.5 	department-published Minnesota comprehensive statewide trauma system plan. The 
167.6 	commissioner shall seek the advice of the Trauma Advisory Council in implementing 
167.7 	and updating the criteria, using accepted and prevailing trauma transport, treatment, 
167.8 	and referral standards of the American College of Surgeons, the American College of 
167.9 	Emergency Physicians, the Minnesota Emergency Medical Services Regulatory Board, 
167.10 	the national Trauma Resources Network Center Association of America, and other widely 
167.11 	recognized trauma experts. The commissioner shall adapt and modify the standards as 
167.12 	appropriate to accommodate Minnesota's unique geography and the state's hospital and 
167.13 	health professional distribution and shall verify that the criteria are met by each hospital 
167.14 	voluntarily participating in the statewide trauma system.
167.15 		Subd. 3.Rule exemption and report to legislature. In developing and adopting 
167.16 	the criteria under this section, the commissioner of health is exempt from chapter 14, 
167.17 	including section 14.386. By September 1, 2009, the commissioner must report to the 
167.18 	legislature on implementation of the voluntary trauma system, including recommendations 
167.19 	on the need for including the trauma system criteria in rule.

167.20 	Sec. 9. Minnesota Statutes 2008, section 144.605, subdivision 2, is amended to read:
167.21 		Subd. 2.Designation; reverification. The commissioner shall designate four six
167.22 	levels of trauma hospitals. A hospital that voluntarily meets the criteria for a particular 
167.23 	level of trauma hospital shall apply to the commissioner for designation and, upon the 
167.24 	commissioner's verifying the hospital meets the criteria, be designated a trauma hospital 
167.25 	at the appropriate level for a three-year period. Prior to the expiration of the three-year 
167.26 	designation, a hospital seeking to remain part of the voluntary system must apply for 
167.27 	and successfully complete a reverification process, be awaiting the site visit for the 
167.28 	reverification, or be awaiting the results of the site visit. The commissioner may extend a 
167.29 	hospital's existing designation for up to 18 months on a provisional basis if the hospital has 
167.30 	applied for reverification in a timely manner but has not yet completed the reverification 
167.31 	process within the expiration of the three-year designation and the extension is in the 
167.32 	best interest of trauma system patient safety. To be granted a provisional extension, the 
167.33 	hospital must be:
167.34 	(1) scheduled and awaiting the site visit for reverification;
167.35 	(2) awaiting the results of the site visit; or
168.1 	(3) responding to and correcting identified deficiencies identified in the site visit.

168.2 	Sec. 10. Minnesota Statutes 2008, section 144.605, subdivision 3, is amended to read:
168.3 		Subd. 3.ACS verification. The commissioner shall grant the appropriate level I, II, 
168.4 	or III trauma hospital or level I or II pediatric trauma hospital designation to a hospital that 
168.5 	successfully completes and passes the American College of Surgeons (ACS) verification 
168.6 	standards at the hospital's cost, submits verification documentation to the Trauma Advisory 
168.7 	Council, and formally notifies the Trauma Advisory Council of ACS verification.

168.8 	Sec. 11. Minnesota Statutes 2008, section 144.605, is amended by adding a subdivision 
168.9 	to read:
168.10 		Subd. 9.Designation process protection. Data on patients in information and 
168.11 	reports related to the designation and redesignation of trauma hospitals pursuant to 
168.12 	subdivisions 3 to 5 are private data on individuals, as defined in section 13.02, subdivision 
168.13 	12. 

168.14 	Sec. 12. [144.6071] TRAUMA REGISTRY.
168.15 		Subdivision 1.Registry. The commissioner of health shall establish and maintain 
168.16 	a central registry of persons who sustain major trauma as defined in section 144.602, 
168.17 	subdivision 3. The registry shall collect information to facilitate the development of 
168.18 	clinical and system quality improvement, injury prevention, treatment, and rehabilitation 
168.19 	programs.
168.20 		Subd. 2.Registry participation required. A trauma hospital must participate in 
168.21 	the statewide trauma registry. The consent of the injured person is not required.
168.22 		Subd. 3.Registry information. Trauma hospitals must electronically submit the 
168.23 	following information to the registry:
168.24 	(1) demographic information of the injured person;
168.25 	(2) information about the date, location, and cause of the injury;
168.26 	(3) information about the condition of the injured person;
168.27 	(4) information about the treatment, comorbidities, and diagnosis of the injured 
168.28 	person;
168.29 	(5) information about the outcome and disposition of the injured person; and
168.30 	(6) other trauma-related information required by the commissioner, if necessary to 
168.31 	facilitate the development of clinical and system quality improvement, treatment, and 
168.32 	rehabilitation programs.
169.1 		Subd. 4.Rules. The commissioner may adopt rules to collect other information 
169.2 	required to facilitate the development of clinical and system quality improvement, injury 
169.3 	prevention, treatment, and rehabilitation programs. The commissioner may adopt rules at 
169.4 	any time to implement this section and is not subject to the requirements of section 14.125.
169.5 		Subd. 5.Reporting without liability. Any person or facility furnishing information 
169.6 	required in this section shall not be subject to any action for damages or other relief, 
169.7 	provided that the person or facility is acting in good faith.
169.8 		Subd. 6.Data classification. Data on individuals collected by the commissioner 
169.9 	of health under this section are private data on individuals, as defined in section 13.02, 
169.10 	subdivision 12. Data not on individuals are nonpublic data as defined in section 13.02, 
169.11 	subdivision 9. The commissioner shall provide summary registry data to public and 
169.12 	private entities to conduct studies using data collected by the registry. The commissioner 
169.13 	may charge a fee under section 13.03, subdivision 3, for all out-of-pocket expenses 
169.14 	associated with the provision of data or data analysis.
169.15 		Subd. 7.Report requirements. The commissioner shall use the registry to annually 
169.16 	publish a report that includes comparative demographic and risk-adjusted epidemiological 
169.17 	data on designated trauma hospitals. Any analyses or reports that identify providers 
169.18 	may only be published after the provider has been provided the opportunity by the 
169.19 	commissioner to review the underlying data and submit comments. The provider shall 
169.20 	have 21 days to review the data for accuracy.

169.21 	Sec. 13. Minnesota Statutes 2008, section 144.608, subdivision 1, is amended to read:
169.22 		Subdivision 1.Trauma Advisory Council established. (a) A Trauma Advisory 
169.23 	Council is established to advise, consult with, and make recommendations to the 
169.24 	commissioner on the development, maintenance, and improvement of a statewide trauma 
169.25 	system.
169.26 	(b) The council shall consist of the following members:
169.27 	(1) a trauma surgeon certified by the American College of Surgeons Board of 
169.28 	Surgery or the American Osteopathic Board of Surgery who practices in a level I or 
169.29 	II trauma hospital;
169.30 	(2) a general surgeon certified by the American College of Surgeons Board 
169.31 	of Surgery or the American Osteopathic Board of Surgery whose practice includes 
169.32 	trauma and who practices in a designated rural area as defined under section 144.1501, 
169.33 	subdivision 1, paragraph (b);
169.34 	(3) a neurosurgeon certified by the American Board of Neurological Surgery who 
169.35 	practices in a level I or II trauma hospital;
170.1 	(4) a trauma program nurse manager or coordinator practicing in a level I or II 
170.2 	trauma hospital;
170.3 	(5) an emergency physician certified by the American College Board of Emergency 
170.4 	Physicians Medicine or the American Osteopathic Board of Emergency Medicine whose 
170.5 	practice includes emergency room care in a level I, II, III, or IV trauma hospital;
170.6 	(6) an emergency room nurse manager a trauma program manager or coordinator
170.7 	who practices in a level III or IV trauma hospital;
170.8 	(7) a family practice physician certified by the American Board of Family Medicine 
170.9 	or the American Osteopathic Board of Family Practice whose practice includes emergency 
170.10 	room department care in a level III or IV trauma hospital located in a designated rural area 
170.11 	as defined under section 144.1501, subdivision 1, paragraph (b);
170.12 	(8) a nurse practitioner, as defined under section 144.1501, subdivision 1, paragraph 
170.13 	(h), or a physician assistant, as defined under section 144.1501, subdivision 1, paragraph 
170.14 	(j), whose practice includes emergency room care in a level IV trauma hospital located in 
170.15 	a designated rural area as defined under section 144.1501, subdivision 1, paragraph (b);
170.16 	(9) a pediatrician certified by the American Academy Board of Pediatrics or the 
170.17 	American Osteopathic Board of Pediatrics whose practice includes emergency room
170.18 	department care in a level I, II, III, or IV trauma hospital;
170.19 	(10) an orthopedic surgeon certified by the American Board of Orthopaedic Surgery 
170.20 	or the American Osteopathic Board of Orthopedic Surgery whose practice includes trauma 
170.21 	and who practices in a level I, II, or III trauma hospital;
170.22 	(11) the state emergency medical services medical director appointed by the 
170.23 	Emergency Medical Services Regulatory Board;
170.24 	(12) a hospital administrator of a level III or IV trauma hospital located in a 
170.25 	designated rural area as defined under section 144.1501, subdivision 1, paragraph (b);
170.26 	(13) a rehabilitation specialist whose practice includes rehabilitation of patients 
170.27 	with major trauma injuries or traumatic brain injuries and spinal cord injuries as defined 
170.28 	under section 144.661;
170.29 	(14) an attendant or ambulance director who is an EMT, EMT-I, or EMT-P within 
170.30 	the meaning of section 144E.001 and who actively practices with a licensed ambulance 
170.31 	service in a primary service area located in a designated rural area as defined under section 
170.32 	144.1501, subdivision 1, paragraph (b); and
170.33 	(15) the commissioner of public safety or the commissioner's designee.
170.34 	(c) Council members whose appointment is dependent on practice in a level III or IV 
170.35 	trauma hospital may be appointed to an initial term based upon their statements that the 
170.36 	hospital intends to become a level III or IV facility by July 1, 2009.

171.1 	Sec. 14. [144.615] BIRTH CENTERS.
171.2 		Subdivision 1.Definitions. (a) For purposes of this section, the following definitions 
171.3 	have the meanings given them.
171.4 	(b) "Birth center" means a facility licensed for the primary purpose of performing 
171.5 	low-risk deliveries that is not a hospital or licensed as part of a hospital and where births are 
171.6 	planned to occur away from the mother's usual residence following a low-risk pregnancy.
171.7 	(c) "CABC" means the Commission for the Accreditation of Birth Centers.
171.8 	(d) "Low-risk pregnancy" means a normal, uncomplicated prenatal course as 
171.9 	determined by documentation of adequate prenatal care and the anticipation of a normal 
171.10 	uncomplicated labor and birth, as defined by reasonable and generally accepted criteria 
171.11 	adopted by professional groups for maternal, fetal, and neonatal health care.
171.12 		Subd. 2.License required. (a) Beginning January 1, 2011, no birth center shall be 
171.13 	established, operated, or maintained in the state without first obtaining a license from the 
171.14 	commissioner of health according to this section.
171.15 	(b) A license issued under this section is not transferable or assignable and is subject 
171.16 	to suspension or revocation at any time for failure to comply with this section.
171.17 	(c) A birth center licensed under this section shall not assert, represent, offer, 
171.18 	provide, or imply that the center is or may render care or services other than the services it 
171.19 	is permitted to render within the scope of the license or the accreditation issued.
171.20 	(d) The license must be conspicuously posted in an area where patients are admitted.
171.21 		Subd. 3.Temporary license. For new birth centers planning to begin operations 
171.22 	after January 1, 2011, the commissioner may issue a temporary license to the birth center 
171.23 	that is valid for a period of six months from the date of issuance. The birth center must 
171.24 	submit to the commissioner an application and applicable fee for licensure as required 
171.25 	under subdivision 4. The application must include the information required in subdivision 
171.26 	4, clauses (1) to (3) and (5) to (7), and documentation that the birth center has submitted 
171.27 	an application for accreditation to the CABC. Upon receipt of accreditation from the 
171.28 	CABC, the birth center must submit to the commissioner the information required in 
171.29 	subdivision 4, clause (4), and the applicable fee under subdivision 8. The commissioner 
171.30 	shall issue a new license.
171.31 		Subd. 4.Application. An application for a license to operate a birth center and the 
171.32 	applicable fee under subdivision 8 must be submitted to the commissioner on a form 
171.33 	provided by the commissioner and must contain:
171.34 	(1) the name of the applicant;
171.35 	(2) the site location of the birth center;
171.36 	(3) the name of the person in charge of the center;
172.1 	(4) documentation that the accreditation described under subdivision 6 has been 
172.2 	issued, including the effective date and the expiration date of the accreditation, and the 
172.3 	date of the last site visit by the CABC;
172.4 	(5) the number of patients the birth center is capable of serving at a given time;
172.5 	(6) the names and license numbers, if applicable, of the health care professionals 
172.6 	on staff at the birth center; and
172.7 	(7) any other information the commissioner deems necessary.
172.8 		Subd. 5.Suspension, revocation, and refusal to renew. The commissioner may 
172.9 	refuse to grant or renew, or may suspend or revoke, a license on any of the grounds 
172.10 	described under section 144.55, subdivision 6, paragraph (a), clause (2), (3), or (4), or 
172.11 	upon the loss of accreditation by the CABC. The applicant or licensee is entitled to notice 
172.12 	and a hearing as described under section 144.55, subdivision 7, and a new license may be 
172.13 	issued after proper inspection of the birth center has been conducted.
172.14 		Subd. 6.Standards for licensure. (a) To be eligible for licensure under this 
172.15 	section, a birth center must be accredited by the CABC or must obtain accreditation 
172.16 	within six months of the date of the application for licensure. If the birth center loses its 
172.17 	accreditation, the birth center must immediately notify the commissioner.
172.18 	(b) The center must have procedures in place specifying criteria by which risk status 
172.19 	will be established and applied to each woman at admission and during labor.
172.20 	(c) Upon request, the birth center shall provide the commissioner of health with any 
172.21 	material submitted by the birth center to the CABC as part of the accreditation process, 
172.22 	including the accreditation application, the self-evaluation report, the accreditation 
172.23 	decision letter from the CABC, and any reports from the CABC following a site visit.
172.24 		Subd. 7.Limitations of services. (a) The following limitations apply to the services 
172.25 	performed at a birth center:
172.26 	(1) surgical procedures must be limited to those normally accomplished during an 
172.27 	uncomplicated birth, including episiotomy and repair;
172.28 	(2) no abortions may be administered; and
172.29 	(3) no general or regional anesthesia may be administered.
172.30 	(b) Notwithstanding paragraph (a), local anesthesia may be administered at a birth 
172.31 	center if the administration of the anesthetic is performed within the scope of practice of a 
172.32 	health care professional.
172.33 		Subd. 8.Fees. (a) The biennial license fee for a birth center is $365.
172.34 	(b) The temporary license fee is $365.
172.35 	(c) Fees shall be collected and deposited according to section 144.122.
173.1 		Subd. 9.Renewal. (a) Except as provided in paragraph (b), a license issued under 
173.2 	this section expires two years from the date of issue.
173.3 	(b) A temporary license issued under subdivision 3 expires six months from the date 
173.4 	of issue, and may be renewed for one additional six-month period.
173.5 	(c) An application for renewal shall be submitted at least 60 days prior to expiration 
173.6 	of the license on forms prescribed by the commissioner of health.
173.7 		Subd. 10.Records. All health records maintained on each client by a birth center 
173.8 	are subject to sections 144.292 to 144.298.
173.9 		Subd. 11.Report. (a) The commissioner of health, in consultation with the 
173.10 	commissioner of human services and representatives of the licensed birth centers, 
173.11 	the American College of Obstetricians and Gynecologists, the American Academy 
173.12 	of Pediatrics, the Minnesota Hospital Association, and the Minnesota Ambulance 
173.13 	Association, shall evaluate the quality of care and outcomes for services provided in 
173.14 	licensed birth centers, including, but not limited to, the utilization of services provided at a 
173.15 	birth center, the outcomes of care provided to both mothers and newborns, and the numbers 
173.16 	of transfers to other health care facilities that are required and the reasons for the transfers. 
173.17 	The commissioner shall work with the birth centers to establish a process to gather and 
173.18 	analyze the data within protocols that protect the confidentiality of patient identification.
173.19 	(b) The commissioner of health shall report the findings of the evaluation to the 
173.20 	legislature by January 15, 2014.

173.21 	Sec. 15. Minnesota Statutes 2008, section 144.651, subdivision 2, is amended to read:
173.22 		Subd. 2.Definitions. For the purposes of this section, "patient" means a person 
173.23 	who is admitted to an acute care inpatient facility for a continuous period longer than 
173.24 	24 hours, for the purpose of diagnosis or treatment bearing on the physical or mental 
173.25 	health of that person. For purposes of subdivisions 4 to 9, 12, 13, 15, 16, and 18 to 20, 
173.26 	"patient" also means a person who receives health care services at an outpatient surgical 
173.27 	center or at a birth center licensed under section 144.615. "Patient" also means a minor 
173.28 	who is admitted to a residential program as defined in section 253C.01. For purposes of 
173.29 	subdivisions 1, 3 to 16, 18, 20 and 30, "patient" also means any person who is receiving 
173.30 	mental health treatment on an outpatient basis or in a community support program or other 
173.31 	community-based program. "Resident" means a person who is admitted to a nonacute care 
173.32 	facility including extended care facilities, nursing homes, and boarding care homes for 
173.33 	care required because of prolonged mental or physical illness or disability, recovery from 
173.34 	injury or disease, or advancing age. For purposes of all subdivisions except subdivisions 
173.35 	28 and 29, "resident" also means a person who is admitted to a facility licensed as a board 
174.1 	and lodging facility under Minnesota Rules, parts 4625.0100 to 4625.2355, or a supervised 
174.2 	living facility under Minnesota Rules, parts 4665.0100 to 4665.9900, and which operates 
174.3 	a rehabilitation program licensed under Minnesota Rules, parts 9530.4100 to 9530.4450. 

174.4 	Sec. 16. Minnesota Statutes 2008, section 144.9504, is amended by adding a 
174.5 	subdivision to read:
174.6 		Subd. 12.Blood lead level guidelines. (a) By January 1, 2011, the commissioner 
174.7 	must revise clinical and case management guidelines to include recommendations 
174.8 	for protective health actions and follow-up services when a child's blood lead level 
174.9 	exceeds five micrograms of lead per deciliter of blood. The revised guidelines must be 
174.10 	implemented to the extent possible using available resources.
174.11 	(b) In revising the clinical and case management guidelines for blood lead levels 
174.12 	greater than five micrograms of lead per deciliter of blood under this subdivision, 
174.13 	the commissioner of health must consult with a statewide organization representing 
174.14 	physicians, the public health department of Minneapolis and other public health 
174.15 	departments, one representative of the residential construction industry, and a nonprofit 
174.16 	organization with expertise in lead abatement.

174.17 	Sec. 17. Minnesota Statutes 2008, section 144A.51, subdivision 5, is amended to read:
174.18 		Subd. 5.Health facility. "Health facility" means a facility or that part of a facility 
174.19 	which is required to be licensed pursuant to sections 144.50 to 144.58, 144.615, and a 
174.20 	facility or that part of a facility which is required to be licensed under any law of this state 
174.21 	which provides for the licensure of nursing homes. 

174.22 	Sec. 18. Minnesota Statutes 2008, section 144E.37, is amended to read:
174.23 	144E.37 COMPREHENSIVE ADVANCED LIFE SUPPORT.
174.24 	The board commissioner of health shall establish a comprehensive advanced 
174.25 	life-support educational program to train rural medical personnel, including physicians, 
174.26 	physician assistants, nurses, and allied health care providers, in a team approach to 
174.27 	anticipate, recognize, and treat life-threatening emergencies before serious injury or 
174.28 	cardiac arrest occurs.

174.29 	EFFECTIVE DATE. This section is effective July 1, 2010.

174.30 	Sec. 19. HEALTH PLAN AND COUNTY ADMINISTRATIVE COST 
174.31 	REDUCTION; REPORTING REQUIREMENTS.
 175.1 	(a) Minnesota health plans and county-based purchasing plans may complete an 
175.2 	inventory of existing data collection and reporting requirements for health plans and 
175.3 	county-based purchasing plans and submit to the commissioners of health and human 
175.4 	services a list of data, documentation, and reports that:
175.5 	(1) are collected from the same health plan or county-based purchasing plan more 
175.6 	than once;
175.7 	(2) are collected directly from the health plan or county-based purchasing plan but 
175.8 	are available to the state agencies from other sources;
175.9 	(3) are not currently being used by state agencies; or
175.10 	(4) collect similar information more than once in different formats, at different 
175.11 	times, or by more than one state agency.
175.12 	(b) The report to the commissioners may also identify the percentage of health 
175.13 	plan and county-based purchasing plan administrative time and expense attributed to 
175.14 	fulfilling reporting requirements and include recommendations regarding ways to reduce 
175.15 	duplicative reporting requirements.
175.16 	(c) Upon receipt, the commissioners shall submit the inventory and recommendations 
175.17 	to the chairs of the appropriate legislative committees, along with their comments 
175.18 	and recommendations as to whether any action should be taken by the legislature to 
175.19 	establish a consolidated and streamlined reporting system under which data, reports, and 
175.20 	documentation are collected only once and only when needed for the state agencies to 
175.21 	fulfill their duties under law and applicable regulations.

175.22 	Sec. 20. VENDOR ACCREDITATION SIMPLIFICATION.
 175.23 	The Minnesota Hospital Association must coordinate with the Minnesota 
175.24 	Credentialing Collaborative to make recommendations by January 1, 2012, on the 
175.25 	development of standard accreditation methods for vendor services provided within 
175.26 	hospitals and clinics. The recommendations must be consistent with requirements of 
175.27 	hospital credentialing organizations and applicable federal requirements.

175.28 	Sec. 21. APPLICATION PROCESS FOR HEALTH INFORMATION 
175.29 	EXCHANGE.
 175.30 	To the extent that the commissioner of health applies for additional federal funding 
175.31 	to support the commissioner's responsibilities of developing and maintaining state level 
175.32 	health information exchange under section 3013 of the HITECH Act, the commissioner of 
175.33 	health shall ensure that applications are made through an open process that provides health 
175.34 	information exchange service providers equal opportunity to receive funding.

176.1 	Sec. 22. TRANSFER.
 176.2 	The powers and duties of the Emergency Medical Services Regulatory Board with 
176.3 	respect to the comprehensive advanced life-support educational program under Minnesota 
176.4 	Statutes, section 144E.37, are transferred to the commissioner of health under Minnesota 
176.5 	Statutes, section 15.039.

176.6 	EFFECTIVE DATE. This section is effective July 1, 2010.

176.7 	Sec. 23. REVISOR'S INSTRUCTION.
 176.8 	The revisor of statutes shall renumber Minnesota Statutes, section 144E.37, as 
176.9 	Minnesota Statutes, section 144.6062, and make all necessary changes in statutory 
176.10 	cross-references in Minnesota Statutes and Minnesota Rules.

176.11 	EFFECTIVE DATE. This section is effective July 1, 2010.

176.12 	Sec. 24.  REPEALER.
 176.13 	Minnesota Statutes 2008, section 144.607, is repealed.

176.14 	ARTICLE 21
176.15 	PUBLIC HEALTH

176.16 	Section 1. Minnesota Statutes 2008, section 62J.692, subdivision 4, is amended to read:
176.17 		Subd. 4.Distribution of funds. (a) Following the distribution described under 
176.18 	paragraph (b), the commissioner shall annually distribute the available medical education 
176.19 	funds to all qualifying applicants based on a distribution formula that reflects a summation 
176.20 	of two factors:
176.21 	(1) a public program volume factor, which is determined by the total volume of 
176.22 	public program revenue received by each training site as a percentage of all public 
176.23 	program revenue received by all training sites in the fund pool; and
176.24 	(2) a supplemental public program volume factor, which is determined by providing 
176.25 	a supplemental payment of 20 percent of each training site's grant to training sites whose 
176.26 	public program revenue accounted for at least 0.98 percent of the total public program 
176.27 	revenue received by all eligible training sites. Grants to training sites whose public 
176.28 	program revenue accounted for less than 0.98 percent of the total public program revenue 
176.29 	received by all eligible training sites shall be reduced by an amount equal to the total 
176.30 	value of the supplemental payment.
176.31 	Public program revenue for the distribution formula includes revenue from medical 
176.32 	assistance, prepaid medical assistance, general assistance medical care, and prepaid 
177.1 	general assistance medical care. Training sites that receive no public program revenue 
177.2 	are ineligible for funds available under this subdivision. For purposes of determining 
177.3 	training-site level grants to be distributed under paragraph (a), total statewide average 
177.4 	costs per trainee for medical residents is based on audited clinical training costs per trainee 
177.5 	in primary care clinical medical education programs for medical residents. Total statewide 
177.6 	average costs per trainee for dental residents is based on audited clinical training costs 
177.7 	per trainee in clinical medical education programs for dental students. Total statewide 
177.8 	average costs per trainee for pharmacy residents is based on audited clinical training costs 
177.9 	per trainee in clinical medical education programs for pharmacy students.
177.10 	(b) $5,350,000 of the available medical education funds shall be distributed as 
177.11 	follows:
177.12 	(1) $1,475,000 to the University of Minnesota Medical Center-Fairview;
177.13 	(2) $2,075,000 to the University of Minnesota School of Dentistry; and
177.14 	(3) $1,800,000 to the Academic Health Center. $150,000 of the funds distributed to 
177.15 	the Academic Health Center under this paragraph shall be used for a program to assist 
177.16 	internationally trained physicians who are legal residents and who commit to serving 
177.17 	underserved Minnesota communities in a health professional shortage area to successfully 
177.18 	compete for family medicine residency programs at the University of Minnesota.
177.19 	(c) Funds distributed shall not be used to displace current funding appropriations 
177.20 	from federal or state sources.
177.21 	(d) Funds shall be distributed to the sponsoring institutions indicating the amount 
177.22 	to be distributed to each of the sponsor's clinical medical education programs based on 
177.23 	the criteria in this subdivision and in accordance with the commissioner's approval letter. 
177.24 	Each clinical medical education program must distribute funds allocated under paragraph 
177.25 	(a) to the training sites as specified in the commissioner's approval letter. Sponsoring 
177.26 	institutions, which are accredited through an organization recognized by the Department 
177.27 	of Education or the Centers for Medicare and Medicaid Services, may contract directly 
177.28 	with training sites to provide clinical training. To ensure the quality of clinical training, 
177.29 	those accredited sponsoring institutions must:
177.30 	(1) develop contracts specifying the terms, expectations, and outcomes of the clinical 
177.31 	training conducted at sites; and
177.32 	(2) take necessary action if the contract requirements are not met. Action may 
177.33 	include the withholding of payments under this section or the removal of students from 
177.34 	the site.
177.35 	(e) Any funds not distributed in accordance with the commissioner's approval letter 
177.36 	must be returned to the medical education and research fund within 30 days of receiving 
178.1 	notice from the commissioner. The commissioner shall distribute returned funds to the 
178.2 	appropriate training sites in accordance with the commissioner's approval letter.
178.3 	(f) A maximum of $150,000 of the funds dedicated to the commissioner under 
178.4 	section 297F.10, subdivision 1, clause (2), may be used by the commissioner for 
178.5 	administrative expenses associated with implementing this section.

178.6 	Sec. 2. Minnesota Statutes 2009 Supplement, section 157.16, subdivision 3, is 
178.7 	amended to read:
178.8 		Subd. 3. Establishment fees; definitions. (a) The following fees are required 
178.9 	for food and beverage service establishments, youth camps, hotels, motels, lodging 
178.10 	establishments, public pools, and resorts licensed under this chapter. Food and beverage 
178.11 	service establishments must pay the highest applicable fee under paragraph (d), clause 
178.12 	(1), (2), (3), or (4), and establishments serving alcohol must pay the highest applicable 
178.13 	fee under paragraph (d), clause (6) or (7). The license fee for new operators previously 
178.14 	licensed under this chapter for the same calendar year is one-half of the appropriate annual 
178.15 	license fee, plus any penalty that may be required. The license fee for operators opening 
178.16 	on or after October 1 is one-half of the appropriate annual license fee, plus any penalty 
178.17 	that may be required. 
178.18 	(b) All food and beverage service establishments, except special event food stands, 
178.19 	and all hotels, motels, lodging establishments, public pools, and resorts shall pay an 
178.20 	annual base fee of $150. 
178.21 	(c) A special event food stand shall pay a flat fee of $50 annually. "Special event 
178.22 	food stand" means a fee category where food is prepared or served in conjunction with 
178.23 	celebrations, county fairs, or special events from a special event food stand as defined 
178.24 	in section 157.15. 
178.25 	(d) In addition to the base fee in paragraph (b), each food and beverage service 
178.26 	establishment, other than a special event food stand, and each hotel, motel, lodging 
178.27 	establishment, public pool, and resort shall pay an additional annual fee for each fee 
178.28 	category, additional food service, or required additional inspection specified in this 
178.29 	paragraph: 
178.30 	(1) Limited food menu selection, $60. "Limited food menu selection" means a fee 
178.31 	category that provides one or more of the following: 
178.32 	(i) prepackaged food that receives heat treatment and is served in the package; 
178.33 	(ii) frozen pizza that is heated and served; 
178.34 	(iii) a continental breakfast such as rolls, coffee, juice, milk, and cold cereal; 
178.35 	(iv) soft drinks, coffee, or nonalcoholic beverages; or 
179.1 	(v) cleaning for eating, drinking, or cooking utensils, when the only food served 
179.2 	is prepared off site. 
179.3 	(2) Small establishment, including boarding establishments, $120. "Small 
179.4 	establishment" means a fee category that has no salad bar and meets one or more of 
179.5 	the following: 
179.6 	(i) possesses food service equipment that consists of no more than a deep fat fryer, a 
179.7 	grill, two hot holding containers, and one or more microwave ovens; 
179.8 	(ii) serves dipped ice cream or soft serve frozen desserts; 
179.9 	(iii) serves breakfast in an owner-occupied bed and breakfast establishment; 
179.10 	(iv) is a boarding establishment; or 
179.11 	(v) meets the equipment criteria in clause (3), item (i) or (ii), and has a maximum 
179.12 	patron seating capacity of not more than 50. 
179.13 	(3) Medium establishment, $310. "Medium establishment" means a fee category 
179.14 	that meets one or more of the following: 
179.15 	(i) possesses food service equipment that includes a range, oven, steam table, salad 
179.16 	bar, or salad preparation area; 
179.17 	(ii) possesses food service equipment that includes more than one deep fat fryer, 
179.18 	one grill, or two hot holding containers; or 
179.19 	(iii) is an establishment where food is prepared at one location and served at one or 
179.20 	more separate locations. 
179.21 	Establishments meeting criteria in clause (2), item (v), are not included in this fee 
179.22 	category. 
179.23 	(4) Large establishment, $540. "Large establishment" means either: 
179.24 	(i) a fee category that (A) meets the criteria in clause (3), items (i) or (ii), for a 
179.25 	medium establishment, (B) seats more than 175 people, and (C) offers the full menu 
179.26 	selection an average of five or more days a week during the weeks of operation; or 
179.27 	(ii) a fee category that (A) meets the criteria in clause (3), item (iii), for a medium 
179.28 	establishment, and (B) prepares and serves 500 or more meals per day. 
179.29 	(5) Other food and beverage service, including food carts, mobile food units, 
179.30 	seasonal temporary food stands, and seasonal permanent food stands, $60. 
179.31 	(6) Beer or wine table service, $60. "Beer or wine table service" means a fee 
179.32 	category where the only alcoholic beverage service is beer or wine, served to customers 
179.33 	seated at tables. 
179.34 	(7) Alcoholic beverage service, other than beer or wine table service, $165. 
180.1 	"Alcohol beverage service, other than beer or wine table service" means a fee 
180.2 	category where alcoholic mixed drinks are served or where beer or wine are served from 
180.3 	a bar. 
180.4 	(8) Lodging per sleeping accommodation unit, $10, including hotels, motels, 
180.5 	lodging establishments, and resorts, up to a maximum of $1,000. "Lodging per sleeping 
180.6 	accommodation unit" means a fee category including the number of guest rooms, cottages, 
180.7 	or other rental units of a hotel, motel, lodging establishment, or resort; or the number of 
180.8 	beds in a dormitory. 
180.9 	(9) First public pool, $325; each additional public pool, $175. "Public pool" means a 
180.10 	fee category that has the meaning given in section 144.1222, subdivision 4. 
180.11 	(10) First spa, $175; each additional spa, $100. "Spa pool" means a fee category that 
180.12 	has the meaning given in Minnesota Rules, part 4717.0250, subpart 9. 
180.13 	(11) Private sewer or water, $60. "Individual private water" means a fee category 
180.14 	with a water supply other than a community public water supply as defined in Minnesota 
180.15 	Rules, chapter 4720. "Individual private sewer" means a fee category with an individual 
180.16 	sewage treatment system which uses subsurface treatment and disposal. 
180.17 	(12) Additional food service, $150. "Additional food service" means a location at 
180.18 	a food service establishment, other than the primary food preparation and service area, 
180.19 	used to prepare or serve food to the public. 
180.20 	(13) Additional inspection fee, $360. "Additional inspection fee" means a fee to 
180.21 	conduct the second inspection each year for elementary and secondary education facility 
180.22 	school lunch programs when required by the Richard B. Russell National School Lunch 
180.23 	Act. 
180.24 	(e) A fee for review of construction plans must accompany the initial license 
180.25 	application for restaurants, hotels, motels, lodging establishments, resorts, seasonal food 
180.26 	stands, and mobile food units. The fee for this construction plan review is as follows:

180.27	Service Area
	Type
	Fee
	
180.28	Food
	limited food menu
	$275
	
180.29		small establishment
	$400
	
180.30		medium establishment
	$450
	
180.31		large food establishment
	$500
	
180.32		additional food service
	$150
	
180.33	Transient food service
	food cart
	$250
	
180.34		seasonal permanent food stand
	$250
	
180.35		seasonal temporary food stand
	$250
	
180.36		mobile food unit
	$350
	
180.37	Alcohol
	beer or wine table service
	$150
	
180.38		alcohol service from bar
	$250
	
181.1	Lodging
	less than 25 rooms
	$375
	
181.2		25 to less than 100 rooms
	$400
	
181.3		100 rooms or more
	$500
	
181.4		less than five cabins
	$350
	
181.5		five to less than ten cabins
	$400
	
181.6		ten cabins or more
	$450
	
181.7 	(f) When existing food and beverage service establishments, hotels, motels, lodging 
181.8 	establishments, resorts, seasonal food stands, and mobile food units are extensively 
181.9 	remodeled, a fee must be submitted with the remodeling plans. The fee for this 
181.10 	construction plan review is as follows:

181.11	Service Area
	Type
	Fee
	
181.12	Food
	limited food menu
	$250
	
181.13		small establishment
	$300
	
181.14		medium establishment
	$350
	
181.15		large food establishment
	$400
	
181.16		additional food service
	$150
	
181.17	Transient food service
	food cart
	$250
	
181.18		seasonal permanent food stand
	$250
	
181.19		seasonal temporary food stand
	$250
	
181.20		mobile food unit
	$250
	
181.21	Alcohol
	beer or wine table service
	$150
	
181.22		alcohol service from bar
	$250
	
181.23	Lodging
	less than 25 rooms
	$250
	
181.24		25 to less than 100 rooms
	$300
	
181.25		100 rooms or more
	$450
	
181.26		less than five cabins
	$250
	
181.27		five to less than ten cabins
	$350
	
181.28		ten cabins or more
	$400
	
181.29 	(g) Special event food stands are not required to submit construction or remodeling 
181.30 	plans for review. 
181.31 	(h) Youth camps shall pay an annual single fee for food and lodging as follows:
181.32 	(1) camps with up to 99 campers, $325;
181.33 	(2) camps with 100 to 199 campers, $550; and
181.34 	(3) camps with 200 or more campers, $750.
181.35 	(i) A youth camp which pays fees under paragraph (d) is not required to pay fees 
181.36 	under paragraph (h).

181.37 	Sec. 3. Minnesota Statutes 2009 Supplement, section 327.15, subdivision 3, is 
181.38 	amended to read:
182.1 		Subd. 3.Fees, manufactured home parks and recreational camping areas. (a) 
182.2 	The following fees are required for manufactured home parks and recreational camping 
182.3 	areas licensed under this chapter. Recreational camping areas and manufactured home 
182.4 	parks shall pay the highest applicable base fee under paragraph (c) (b). The license fee 
182.5 	for new operators of a manufactured home park or recreational camping area previously 
182.6 	licensed under this chapter for the same calendar year is one-half of the appropriate annual 
182.7 	license fee, plus any penalty that may be required. The license fee for operators opening 
182.8 	on or after October 1 is one-half of the appropriate annual license fee, plus any penalty 
182.9 	that may be required.
182.10 	(b) All manufactured home parks and recreational camping areas shall pay the 
182.11 	following annual base fee:
182.12 	(1) a manufactured home park, $150; and
182.13 	(2) a recreational camping area with:
182.14 	(i) 24 or less sites, $50;
182.15 	(ii) 25 to 99 sites, $212; and
182.16 	(iii) 100 or more sites, $300.
182.17 	In addition to the base fee, manufactured home parks and recreational camping areas shall 
182.18 	pay $4 for each licensed site. This paragraph does not apply to special event recreational 
182.19 	camping areas or to. Operators of a manufactured home park or a recreational camping 
182.20 	area also licensed under section 157.16 for the same location shall pay only one base fee, 
182.21 	whichever is the highest of the base fees found in this section or section 157.16.
182.22 	(c) In addition to the fee in paragraph (b), each manufactured home park or 
182.23 	recreational camping area shall pay an additional annual fee for each fee category 
182.24 	specified in this paragraph:
182.25 	(1) Manufactured home parks and recreational camping areas with public swimming 
182.26 	pools and spas shall pay the appropriate fees specified in section 157.16.
182.27 	(2) Individual private sewer or water, $60. "Individual private water" means a fee 
182.28 	category with a water supply other than a community public water supply as defined in 
182.29 	Minnesota Rules, chapter 4720. "Individual private sewer" means a fee category with a 
182.30 	subsurface sewage treatment system which uses subsurface treatment and disposal.
182.31 	(d) The following fees must accompany a plan review application for initial 
182.32 	construction of a manufactured home park or recreational camping area:
182.33 	(1) for initial construction of less than 25 sites, $375;
182.34 	(2) for initial construction of 25 to 99 sites, $400; and
182.35 	(3) for initial construction of 100 or more sites, $500.
183.1 	(e) The following fees must accompany a plan review application when an existing 
183.2 	manufactured home park or recreational camping area is expanded:
183.3 	(1) for expansion of less than 25 sites, $250;
183.4 	(2) for expansion of 25 to 99 sites, $300; and
183.5 	(3) for expansion of 100 or more sites, $450.

183.6 	Sec. 4. FOOD SUPPORT FOR CHILDREN WITH SEVERE ALLERGIES.
 183.7 	The commissioner of human services must seek a federal waiver from the federal 
183.8 	Department of Agriculture, Food and Nutrition Service, for the supplemental nutrition 
183.9 	assistance program, to increase the income eligibility requirements to 375 percent of the 
183.10 	federal poverty guidelines, in order to cover nutritional food products required to treat 
183.11 	or manage severe food allergies, including allergies to wheat and gluten, for infants and 
183.12 	children who have been diagnosed with life-threatening severe food allergies.

183.13 	ARTICLE 22
183.14 	HEALTH CARE REFORM

183.15 	Section 1. [62E.20] RELATIONSHIP TO TEMPORARY FEDERAL HIGH-RISK 
183.16 	POOL.
183.17 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in 
183.18 	this subdivision have the meanings given.
183.19 	(b) "Association" means the Minnesota Comprehensive Health Association.
183.20 	(c) "Federal law" means Title I, subtitle B, section 1101, of the federal Patient 
183.21 	Protection and Affordable Care Act, Public Law 111-148, including any federal 
183.22 	regulations adopted under it.
183.23 	(d) "Federal qualified high-risk pool" means an arrangement established by the 
183.24 	federal secretary of health and human services that meets the requirements of the federal 
183.25 	law.
183.26 		Subd. 2.Timing of this section. This section applies beginning the date the 
183.27 	temporary federal qualified high-risk health pool created under the federal law begins 
183.28 	to provide coverage in this state.
183.29 		Subd. 3.Maintenance of effort. The assessments made by the comprehensive 
183.30 	health association on its member insurers must comply with the maintenance of effort 
183.31 	requirement contained in paragraph (b), clause (3), of the federal law, to the extent that the 
183.32 	requirement applies to assessments made by the association.
183.33 		Subd. 4.Coordination with state health care programs. The commissioner 
183.34 	of commerce and the Minnesota Comprehensive Health Association shall ensure that 
184.1 	applicants for coverage through the federal qualified high-risk pool, or through the 
184.2 	Minnesota Comprehensive Health Association, are referred to the medical assistance or 
184.3 	MinnesotaCare programs if they are determined to be potentially eligible for coverage 
184.4 	through those programs. The commissioner of human services shall ensure that applicants 
184.5 	for coverage under medical assistance or MinnesotaCare who are determined not to be 
184.6 	eligible for those programs are provided information about coverage through the federal 
184.7 	qualified high-risk pool and the Minnesota Comprehensive Health Association.
184.8 		Subd. 5.Federal funding. Minnesota shall coordinate its efforts with the United 
184.9 	States Department of Health and Human Services (HHS) to obtain the federal funds to 
184.10 	implement in Minnesota the federal qualified high-risk pool.

184.11 	Sec. 2. [256B.0756] COORDINATED CARE THROUGH A HEALTH HOME.
184.12 		Subdivision 1.Provision of coverage. (a) The commissioner shall provide 
184.13 	medical assistance coverage of health home services for eligible individuals with chronic 
184.14 	conditions who select a designated provider, a team of health care professionals, or a 
184.15 	health team as the individual's health home.
184.16 	(b) The commissioner shall implement this section in compliance with the 
184.17 	requirements of the state option to provide health homes for enrollees with chronic 
184.18 	conditions, as provided under the Patient Protection and Affordable Care Act, Public 
184.19 	Law 111-148, sections 2703 and 3502. Terms used in this section have the meaning 
184.20 	provided in that act.
184.21 		Subd. 2.Eligible individual. An individual is eligible for health home services 
184.22 	under this section if the individual is eligible for medical assistance under this chapter 
184.23 	and has at least:
184.24 	(1) two chronic conditions;
184.25 	(2) one chronic condition and is at risk of having a second chronic condition; or
184.26 	(3) one serious and persistent mental health condition.
184.27 		Subd. 3.Health home services. (a) Health home services means comprehensive and 
184.28 	timely high-quality services that are provided by a health home. These services include:
184.29 	(1) comprehensive care management;
184.30 	(2) care coordination and health promotion;
184.31 	(3) comprehensive transitional care, including appropriate follow-up, from inpatient 
184.32 	to other settings;
184.33 	(4) patient and family support, including authorized representatives;
184.34 	(5) referral to community and social support services, if relevant; and
184.35 	(6) use of health information technology to link services, as feasible and appropriate.
185.1 	(b) The commissioner shall maximize the number and type of services 
185.2 	included in this subdivision to the extent permissible under federal law, including 
185.3 	physician, outpatient, mental health treatment, and rehabilitation services necessary for 
185.4 	comprehensive transitional care following hospitalization.
185.5 		Subd. 4.Health teams. The commissioner shall establish health teams to support 
185.6 	the patient-centered health home and provide the services described in subdivision 3 to 
185.7 	individuals eligible under subdivision 2. The commissioner shall apply for grants or 
185.8 	contracts as provided under section 3502 of the Patient Protection and Affordable Care 
185.9 	Act to establish health teams and provide capitated payments to primary care providers. 
185.10 	For purposes of this section, "health teams" means community-based, interdisciplinary, 
185.11 	inter-professional teams of health care providers that support primary care practices. 
185.12 	These providers may include medical specialists, nurses, advanced practice registered 
185.13 	nurses, pharmacists, nutritionists, social workers, behavioral and mental health providers, 
185.14 	doctors of chiropractic, licensed complementary and alternative medicine practitioners, 
185.15 	and physician assistants.
185.16 		Subd. 5.Payments. The commissioner shall make payments to each health home 
185.17 	and each health team for the provision of health home services to each eligible individual 
185.18 	with chronic conditions that selects the health home as a provider.
185.19 		Subd. 6.Coordination. The commissioner, to the extent feasible, shall ensure that 
185.20 	the requirements and payment methods for health homes and health teams developed 
185.21 	under this section are consistent with the requirements and payment methods for health 
185.22 	care homes established under sections 256B.0751 and 256B.0753. The commissioner may 
185.23 	modify requirements and payment methods under sections 256B.0751 and 256B.0753 in 
185.24 	order to be consistent with federal health home requirements and payment methods.
185.25 		Subd. 7.State plan amendment. The commissioner shall submit a state plan 
185.26 	amendment to implement this section to the federal Centers for Medicare and Medicaid 
185.27 	Services by January 1, 2011.

185.28 	EFFECTIVE DATE. This section is effective January 1, 2011, or upon federal 
185.29 	approval, whichever is later.

185.30 	Sec. 3. FEDERAL HEALTH CARE REFORM DEMONSTRATION PROJECTS 
185.31 	AND GRANTS.
 185.32 	(a) The commissioner of human services shall seek to participate in the following 
185.33 	demonstration projects, or apply for the following grants, as described in the federal 
185.34 	Patient Protection and Affordable Care Act, Public Law 111-148:
186.1 	(1) the demonstration project to evaluate integrated care around a hospitalization, 
186.2 	Public Law 111-148, section 2704;
186.3 	(2) the Medicaid global payment system demonstration project, Public Law 111-148, 
186.4 	section 2705, including a demonstration project for the specific population of childless 
186.5 	adults under 75 percent of federal poverty guidelines that were to be served by the general 
186.6 	assistance medical care program;
186.7 	(3) the pediatric accountable care organization demonstration project, Public Law 
186.8 	111-148, section 2706;
186.9 	(4) the Medicaid emergency psychiatric demonstration project, Public Law 111-148, 
186.10 	section 2707; and
186.11 	(5) grants to provide incentives for prevention of chronic diseases in Medicaid, 
186.12 	Public Law 111-148, section 4108.
186.13 	(b) The commissioner of human services shall report to the chairs and ranking 
186.14 	minority members of the house of representatives and senate committees or divisions with 
186.15 	jurisdiction over health care policy and finance on the status of the demonstration project 
186.16 	and grant applications. If the state is accepted as a demonstration project participant, or is 
186.17 	awarded a grant, the commissioner shall notify the chairs and ranking minority members 
186.18 	of those committees or divisions of any legislative changes necessary to implement the 
186.19 	demonstration projects or grants.
186.20 	(c) The commissioner of health shall apply for federal grants available under the 
186.21 	federal Patient Protection and Affordable Care Act, Public Law 111-148, for purposes 
186.22 	of funding wellness and prevention, and health improvement programs. To the extent 
186.23 	possible under federal law, the commissioner of health must utilize the state health 
186.24 	improvement program, established under Minnesota Statutes, section 145.986, to 
186.25 	implement grant programs related to wellness and prevention, and health improvement, 
186.26 	for which the state receives funding under the federal Patient Protection and Affordable 
186.27 	Care Act, Public Law 111-148.

186.28 	Sec. 4. HEALTH CARE REFORM TASK FORCE.
 186.29 		Subdivision 1.Task force. (a) The governor shall convene a Health Care 
186.30 	Reform Task Force to advise and assist the governor and the legislature regarding state 
186.31 	implementation of federal health care reform legislation. For purposes of this section, 
186.32 	"federal health care reform legislation" means the Patient Protection and Affordable Care 
186.33 	Act, Public Law 111-148, and the health care reform provisions in the Health Care and 
186.34 	Education Reconciliation Act of 2010, Public Law 111-152. The task force shall consist of:
187.1 	(1) two legislators from the house of representatives appointed by the speaker and 
187.2 	two legislators from the senate appointed by the Subcommittee on Committees of the 
187.3 	Committee on Rules and Administration;
187.4 	(2) two representatives appointed by the governor to represent the governor and 
187.5 	state agencies;
187.6 	(3) three persons appointed by the governor who have demonstrated leadership in 
187.7 	health care organizations, health plan companies, or health care trade or professional 
187.8 	associations;
187.9 	(4) three persons appointed by the governor who have demonstrated leadership in 
187.10 	employer and group purchaser activities related to health system improvement of whom 
187.11 	two must be from a labor organization and one from the business community; and
187.12 	(5) five persons appointed by the governor who have demonstrated expertise in the 
187.13 	areas of health care financing, access, and quality.
187.14 	The governor is exempt from the requirements of the open appointments process 
187.15 	for purposes of appointing task force members. Members shall be appointed for one-year 
187.16 	terms and may be reappointed.
187.17 	(b) The Department of Health, Department of Human Services, and Department of 
187.18 	Commerce shall provide staff support to the task force. The task force may accept outside 
187.19 	resources to help support its efforts.
187.20 	(c) Task force members must be appointed by July 1, 2010.  The task force must hold 
187.21 	its first meeting by July 15, 2010.
187.22 		Subd. 2.Duties. (a) By December 15, 2010, the task force shall develop and 
187.23 	present to the legislature and the governor a preliminary report and recommendations on 
187.24 	state implementation of federal health care reform legislation. The report must include 
187.25 	recommendations for state law and program changes necessary to comply with the federal 
187.26 	health care reform legislation, and also recommendations for implementing provisions of 
187.27 	the federal legislation that are optional for states. In developing recommendations, the task 
187.28 	force shall consider the extent to which an approach maximizes federal funding to the state.
187.29 	(b) The task force, in consultation with the governor and the legislature, shall also 
187.30 	establish timelines and criteria for future reports on state implementation of the federal 
187.31 	health care reform legislation.

187.32 	Sec. 5. AMERICAN HEALTH BENEFIT EXCHANGE; PLANNING 
187.33 	PROVISIONS.
 187.34 		Subdivision 1.Federal planning grants. The commissioners of commerce, health, 
187.35 	and human services shall jointly or separately apply to the federal secretary of health and 
188.1 	human services for one or more planning grants, including renewal grants, authorized 
188.2 	under section 1311 of the Patient Protection and Affordable Care Act, Public Law 
188.3 	111-148, including any future amendments of that provision, relating to state creation 
188.4 	of American Health Benefit Exchanges.
188.5 		Subd. 2.Consideration of early creation and operation of exchange. (a) The 
188.6 	commissioners referenced in subdivision 1 shall analyze the advantages and disadvantages 
188.7 	to the state of planning to have a state health insurance exchange, similar to an American 
188.8 	Health Benefit Exchange referenced in subdivision 1, begin prior to the federal deadline 
188.9 	of January 1, 2014.
188.10 	(b) The commissioners shall provide a written report to the legislature on the results 
188.11 	of the analysis required under paragraph (a) no later than December 15, 2010. The written 
188.12 	report must comply with Minnesota Statutes, sections 3.195 and 3.197.

188.13 	ARTICLE 23
188.14 	HUMAN SERVICES FORECAST ADJUSTMENTS

188.15	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
188.16 	The amounts shown in this section summarize direct appropriations, by fund, made 
188.17 	in this article.

188.18			2010
		2011
		Total
	
188.19	General
	$
	(109,876,000)
	$
	(28,344,000)
	$
	(138,220,000)
	
188.20	Health Care Access
	$
	99,654,000
	$
	276,500,000
	$
	376,154,000
	
188.21	Federal TANF
	$
	(9,830,000)
	$
	15,133,000
	$
	5,303,000
	
188.22	Total
	$
	(20,052,000)
	$
	263,289,000
	$
	243,237,000

188.23	Sec. 2. DEPARTMENT OF HUMAN SERVICES APPROPRIATION.
 	
188.24 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
188.25 	in parentheses, subtracted from the appropriations in Laws 2009, chapter 79, article 13, 
188.26 	as amended by Laws 2009, chapter 173, article 2, to the agencies and for the purposes 
188.27 	specified in this article. The appropriations are from the general fund, or another named 
188.28 	fund, and are available for the fiscal years indicated for each purpose. The figures "2010" 
188.29 	and "2011" used in this article mean that the addition to or subtraction from appropriations 
188.30 	listed under them is available for the fiscal year ending June 30, 2010, or June 30, 2011, 
188.31 	respectively. "The first year" is fiscal year 2010. "The second year" is fiscal year 2011. 
188.32 	"The biennium" is fiscal years 2010 and 2011. Supplemental appropriations and reductions 
188.33 	for the fiscal year ending June 30, 2010, are effective the day following final enactment 
188.34 	unless a different effective date is explicit.

189.1				APPROPRIATIONS
	
189.2				Available for the Year
	
189.3				Ending June 30
	
189.4					2010
		2011

189.5
189.6	Sec. 3. DEPARTMENT OF HUMAN 
SERVICES

189.7	Subdivision 1.Total Appropriation
 	$
	(20,052,000)
	$
	263,289,000

189.8	Appropriations by Fund
	
189.9		2010
	2011
	
189.10	General
	(109,876,000)
	(28,344,000)
	
189.11	Health Care Access
	99,654,000
	276,500,000
	
189.12	Federal TANF
	(9,830,000)
	15,133,000
	
189.13 	The amounts that may be spent for each 
189.14 	purpose are specified in the following 
189.15 	subdivisions.

189.16	Subd. 2.Revenue and Pass-through

189.17	Appropriations by Fund
	
189.18	Federal TANF
	390,000
	(251,000)

189.19
189.20	Subd. 3.Children and Economic Assistance 
Grants

189.21	Appropriations by Fund
	
189.22	General
	4,489,000
	(4,140,000)
	
189.23	Federal TANF
	(10,220,000)
	15,384,000
	
189.24 	The amounts that may be spent from this 
189.25 	appropriation are as follows:

189.26	(a) MFIP Grants

189.27	General
	7,916,000
	(14,481,000)
	
189.28	Federal TANF
	(10,220,000)
	15,384,000

189.29	(b) MFIP Child Care Assistance Grants
		(7,832,000)
		2,579,000

189.30	(c) General Assistance Grants
		875,000
		1,339,000

189.31	(d)Minnesota Supplemental Aid Grants
		2,454,000
		3,843,000

189.32	(e)Group Residential Housing Grants
		1,076,000
		2,580,000

189.33	Subd. 4.Basic Health Care Grants

190.1	Appropriations by Fund
	
190.2	General 
	(62,770,000)
	29,192,000
	
190.3	Health Care Access
	99,654,000
	276,500,000
	
190.4 	The amounts that may be spent from the 
190.5 	appropriation for each purpose are as follows:

190.6	(a)MinnesotaCare Grants

190.7	Health Care Access
	99,654,000
	276,500,000

190.8
190.9	(b)Medical Assistance Basic Health Care - 
Families and Children
		1,165,000
		24,146,000

190.10
190.11	(c)Medical Assistance Basic Health Care - 
Elderly and Disabled
		(63,935,000)
		5,046,000

190.12	Subd. 5.Continuing Care Grants
 		(51,595,000)
		(53,396,000)
	
190.13 	The amounts that may be spent from the 
190.14 	appropriation for each purpose are as follows:

190.15
190.16	(a)Medical Assistance Long-Term Care 
Facilities
		(3,774,000)
		(8,275,000)

190.17
190.18	(b)Medical Assistance Long-Term Care 
Waivers
		(27,710,000)
		(22,452,000)

190.19	(c)Chemical Dependency Entitlement Grants
		(20,111,000)
		(22,669,000)

190.20 	Sec. 4. EFFECTIVE DATE.
 190.21 	This article is effective the day following final enactment.

190.22 	ARTICLE 24
190.23 	HUMAN SERVICES CONTINGENT APPROPRIATIONS

190.24	Section 1.  SUMMARY OF HUMAN SERVICES APPROPRIATIONS.
 	
190.25 	The amounts shown in this section summarize direct appropriations, by fund, made 
190.26 	in this bill.

190.27			2010
		2011
		Total
	
190.28	General
	$
	-0-
	$
	13,383,000
	$
	13,383,000
	
190.29	Health Care Access
		-0-
		686,000
		686,000
	
190.30	Total
	$
	-0-
	$
	14,069,000
	$
	14,069,000

190.31	Sec. 2. HEALTH AND HUMAN SERVICES CONTINGENT APPROPRIATIONS.
 	
191.1 	The sums shown in the columns marked "Appropriations" are added to the 
191.2 	appropriations in Laws 2009, chapter 79, article 13, as amended by Laws 2009, chapter 
191.3 	173, article 2, to the agency and for the purposes specified in this bill. The appropriations 
191.4 	are from the general fund, or another named fund, and are available for the fiscal years 
191.5 	indicated for each purpose. The figures "2010" and "2011" used in this bill mean that the 
191.6 	addition to or subtraction from the appropriation listed under them is available for the 
191.7 	fiscal year ending June 30, 2010, or June 30, 2011, respectively.

191.8				APPROPRIATIONS
	
191.9				Available for the Year
	
191.10				Ending June 30
	
191.11					2010
		2011

191.12
191.13	Sec. 3. COMMISSIONER OF HUMAN 
SERVICES

191.14	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	14,069,000

191.15	Appropriations by Fund
	
191.16		2010
	2011
	
191.17	General
	-0-
	13,383,000
	
191.18	Health Care Access
	-0-
	686,000
	
191.19 	The appropriations for each purpose are 
191.20 	shown in the following subdivisions.

191.21	Subd. 2.Basic Health Care Grants

191.22	(a) MinnesotaCare Grants
		-0-
		686,000
	
191.23 	This appropriation is from the health care 
191.24 	access fund.

191.25
191.26	(b) Medical Assistance Basic Health Care 
Grants - Families and Children
		-0-
		6,297,000

191.27
191.28	(c) Medical Assistance Basic Health Care 
Grants - Elderly and Disabled
		-0-
		3,697,000

191.29	Subd. 3.Continuing Care Grants

191.30
191.31	(a) Medical Assistance - Long-Term Care 
Facilities Grants
		-0-
		2,486,000

191.32
191.33	(b) Medical Assistance Grants - Long-Term 
Care Waivers and Home Care Grants
		-0-
		547,000

191.34	(c) Chemical Dependency Entitlement Grants
		-0-
		356,000

192.1 	EFFECTIVE DATE. This section is effective upon enactment of an extension of 
192.2 	the enhanced federal medical assistance percentage (FMAP) under Public Law 111-5, 
192.3 	section 5001, to at least June 30, 2011.

192.4 	Sec. 4. Minnesota Statutes 2008, section 256B.0625, subdivision 22, is amended to 
192.5 	read:
192.6 		Subd. 22.Hospice care. Medical assistance covers hospice care services under 
192.7 	Public Law 99-272, section 9505, to the extent authorized by rule, except that a recipient 
192.8 	age 21 or under who elects to receive hospice services does not waive coverage for 
192.9 	services that are related to the treatment of the condition for which a diagnosis of terminal 
192.10 	illness has been made.

192.11 	EFFECTIVE DATE. This section is effective retroactive from March 23, 2010.

192.12 	Sec. 5. Minnesota Statutes 2009 Supplement, section 256B.0911, subdivision 1a, 
192.13 	is amended to read:
192.14 		Subd. 1a.Definitions. For purposes of this section, the following definitions apply:
192.15 	(a) "Long-term care consultation services" means:
192.16 	(1) assistance in identifying services needed to maintain an individual in the most 
192.17 	inclusive environment;
192.18 	(2) providing recommendations on cost-effective community services that are 
192.19 	available to the individual;
192.20 	(3) development of an individual's person-centered community support plan;
192.21 	(4) providing information regarding eligibility for Minnesota health care programs;
192.22 	(5) face-to-face long-term care consultation assessments, which may be completed 
192.23 	in a hospital, nursing facility, intermediate care facility for persons with developmental 
192.24 	disabilities (ICF/DDs), regional treatment centers, or the person's current or planned 
192.25 	residence;
192.26 	(6) federally mandated screening to determine the need for a institutional level of 
192.27 	care under section 256B.0911, subdivision 4, paragraph (a) subdivision 4a;
192.28 	(7) determination of home and community-based waiver service eligibility including 
192.29 	level of care determination for individuals who need an institutional level of care as 
192.30 	defined under section 144.0724, subdivision 11, or 256B.092, service eligibility including 
192.31 	state plan home care services identified in section 256B.0625, subdivisions 6, 7, and 
192.32 	19, paragraphs (a) and (c), based on assessment and support plan development with 
192.33 	appropriate referrals;
193.1 	(8) providing recommendations for nursing facility placement when there are no 
193.2 	cost-effective community services available; and
193.3 	(9) assistance to transition people back to community settings after facility 
193.4 	admission.
193.5 	(b) "Long-term care options counseling" means the services provided by the linkage 
193.6 	lines as mandated by sections 256.01 and 256.975, subdivision 7, and also includes 
193.7 	telephone assistance and follow up once a long-term care consultation assessment has 
193.8 	been completed.
193.9 	(c) "Minnesota health care programs" means the medical assistance program under 
193.10 	chapter 256B and the alternative care program under section 256B.0913.
193.11 	(d) "Lead agencies" means counties or a collaboration of counties, tribes, and health 
193.12 	plans administering long-term care consultation assessment and support planning services.

193.13 	Sec. 6. Minnesota Statutes 2008, section 256B.19, subdivision 1c, is amended to read:
193.14 		Subd. 1c.Additional portion of nonfederal share. (a) Hennepin County shall 
193.15 	be responsible for a monthly transfer payment of $1,500,000, due before noon on the 
193.16 	15th of each month and the University of Minnesota shall be responsible for a monthly 
193.17 	transfer payment of $500,000 due before noon on the 15th of each month, beginning July 
193.18 	15, 1995. These sums shall be part of the designated governmental unit's portion of the 
193.19 	nonfederal share of medical assistance costs.
193.20 	(b) Beginning July 1, 2001, Hennepin County's payment under paragraph (a) shall 
193.21 	be $2,066,000 each month.
193.22 	(c) Beginning July 1, 2001, the commissioner shall increase annual capitation 
193.23 	payments to the metropolitan health plan under section 256B.69 for the prepaid medical 
193.24 	assistance program by approximately $3,400,000, plus any available federal matching 
193.25 	funds, $6,800,000 to recognize higher than average medical education costs.
193.26 	(d) Effective August 1, 2005, Hennepin County's payment under paragraphs (a) 
193.27 	and (b) shall be reduced to $566,000, and the University of Minnesota's payment under 
193.28 	paragraph (a) shall be reduced to zero. Effective October 1, 2008, to December 31, 2010, 
193.29 	Hennepin County's payment under paragraphs (a) and (b) shall be $434,688. Effective 
193.30 	January 1, 2011, Hennepin County's payment under paragraphs (a) and (b) shall be 
193.31 	$566,000.
193.32 	(e) Notwithstanding paragraph (d), upon federal enactment of an extension to June 
193.33 	30, 2011, of the enhanced federal medical assistance percentage (FMAP) originally 
193.34 	provided under Public Law 111-5, for the six-month period from January 1, 2011, to June 
193.35 	30, 2011, Hennepin County's payment under paragraphs (a) and (b) shall be $434,688.

194.1 	Sec. 7. Minnesota Statutes 2008, section 256L.15, subdivision 1, is amended to read:
194.2 		Subdivision 1.Premium determination. (a) Families with children and individuals 
194.3 	shall pay a premium determined according to subdivision 2.
194.4 	(b) Pregnant women and children under age two are exempt from the provisions 
194.5 	of section 256L.06, subdivision 3, paragraph (b), clause (3), requiring disenrollment 
194.6 	for failure to pay premiums. For pregnant women, this exemption continues until the 
194.7 	first day of the month following the 60th day postpartum. Women who remain enrolled 
194.8 	during pregnancy or the postpartum period, despite nonpayment of premiums, shall be 
194.9 	disenrolled on the first of the month following the 60th day postpartum for the penalty 
194.10 	period that otherwise applies under section 256L.06, unless they begin paying premiums. 
194.11 	(c) Members of the military and their families who meet the eligibility criteria 
194.12 	for MinnesotaCare upon eligibility approval made within 24 months following the end 
194.13 	of the member's tour of active duty shall have their premiums paid by the commissioner. 
194.14 	The effective date of coverage for an individual or family who meets the criteria of this 
194.15 	paragraph shall be the first day of the month following the month in which eligibility is 
194.16 	approved. This exemption applies for 12 months. This paragraph expires June 30, 2010. 
194.17 	If the expiration of this provision is in violation of section 5001 of Public Law 111-5, this 
194.18 	provision will expire on the date when it is no longer subject to section 5001 of Public Law 
194.19 	111-5. The commissioner of human services shall notify the revisor of statutes of that date.

194.20 	Sec. 8. Laws 2005, First Special Session chapter 4, article 8, section 66, as amended by 
194.21 	Laws 2009, chapter 173, article 3, section 24, the effective date, is amended to read:

194.22 	EFFECTIVE DATE. Paragraph (a) is effective August 1, 2009, and upon federal 
194.23 	approval and on the date when it is no longer subject to the maintenance of effort 
194.24 	requirements of section 5001 of Public Law 111-5. The commissioner of human services 
194.25 	shall notify the revisor of statutes of that date. Paragraph (e) is effective September 1, 
194.26 	2006.

194.27 	Sec. 9. Laws 2009, chapter 79, article 5, section 17, the effective date, is amended to 
194.28 	read:

194.29 	EFFECTIVE DATE. This section is effective January 1, 2011, or upon federal 
194.30 	approval, whichever is later and on the date when it is no longer subject to the maintenance 
194.31 	of effort requirements of section 5001 of Public Law 111-5. The commissioner of human 
194.32 	services shall notify the revisor of statutes of that date.

195.1 	Sec. 10. Laws 2009, chapter 79, article 5, section 18, the effective date, is amended to 
195.2 	read:

195.3 	EFFECTIVE DATE. This section is effective January 1, 2011 upon federal 
195.4 	approval and on the date when it is no longer subject to the maintenance of effort 
195.5 	requirements of section 5001 of Public Law 111-5. The commissioner of human services 
195.6 	shall notify the revisor of statutes when federal approval is obtained.

195.7 	Sec. 11. Laws 2009, chapter 79, article 5, section 22, the effective date, is amended to 
195.8 	read:

195.9 	EFFECTIVE DATE. This section is effective for periods of ineligibility established 
195.10 	on or after January 1, 2011, unless it is in violation of section 5001 of Public Law 111-5. 
195.11 	If it is in violation of that section, then it shall be effective on the date when it is no longer 
195.12 	subject to maintenance of effort requirements of section 5001 of Public Law 111-5. The 
195.13 	commissioner of human services shall notify the revisor of statutes of that date.

195.14 	Sec. 12. Laws 2009, chapter 79, article 8, section 4, the effective date, is amended to 
195.15 	read:

195.16 	EFFECTIVE DATE. The section is effective January July 1, 2011.

195.17 	Sec. 13. Laws 2009, chapter 173, article 1, section 17, the effective date, is amended to 
195.18 	read:

195.19 	EFFECTIVE DATE. This section is effective for pooled trust accounts established 
195.20 	on or after January 1, 2011, unless it is in violation of section 5001 of Public Law 111-5. 
195.21 	If it is in violation of that section, then it shall be effective on the date when it is no longer 
195.22 	subject to maintenance of effort requirements of section 5001 of Public Law 111-5. The 
195.23 	commissioner of human services shall notify the revisor of statutes of that date.

195.24 	ARTICLE 25
195.25 	HEALTH AND HUMAN SERVICES APPROPRIATIONS

195.26	Section 1. SUMMARY OF APPROPRIATIONS.
 	
195.27 	The amounts shown in this section summarize direct appropriations by fund made 
195.28 	in this article.

195.29			2010
		2011
		Total
	
195.30	General
	$
	(6,784,000)
	$
	210,746,000
	$
	203,962,000
	
196.1
196.2	State Government Special 
Revenue
		113,000
		624,000
		737,000
	
196.3	Health Care Access
		998,000
		(1,276,000)
		(278,000)
	
196.4	Federal TANF
		8,000,000
		20,000,000
		28,000,000
	
196.5	Special Revenue
		-0-
		93,000
		93,000
	
196.6	Total
	$
	2,327,000
	$
	230,187,000
	$
	232,514,000

196.7	Sec. 2. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
196.8 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
196.9 	in parentheses, subtracted from the appropriations in Laws 2009, chapter 79, article 13, 
196.10 	as amended by Laws 2009, chapter 173, article 2, to the agencies and for the purposes 
196.11 	specified in this article. The appropriations are from the general fund, or another named 
196.12 	fund, and are available for the fiscal years indicated for each purpose. The figures "2010" 
196.13 	and "2011" used in this article mean that the addition to or subtraction from appropriations 
196.14 	listed under them is available for the fiscal year ending June 30, 2010, or June 30, 2011, 
196.15 	respectively. "The first year" is fiscal year 2010. "The second year" is fiscal year 2011. 
196.16 	"The biennium" is fiscal years 2010 and 2011. Supplemental appropriations and reductions 
196.17 	for the fiscal year ending June 30, 2010, are effective the day following final enactment 
196.18 	unless a different effective date is explicit.

196.19				APPROPRIATIONS
	
196.20				Available for the Year
	
196.21				Ending June 30
	
196.22					2010
		2011

196.23
196.24	Sec. 3. COMMISSIONER OF HUMAN 
SERVICES

196.25	Subdivision 1.Total Appropriation
 	$
	4,409,000
	$
	226,513,000

196.26	Appropriations by Fund
	
196.27		2010
	2011
	
196.28	General
	(4,589,000)
	209,026,000
	
196.29	Health Care Access
	998,000
	(2,513,000)
	
196.30	Federal TANF
	8,000,000
	20,000,000
	
196.31 	The appropriation modifications for 
196.32 	each purpose are shown in the following 
196.33 	subdivisions.
196.34 	TANF Financing and Maintenance of 
196.35 	Effort. The commissioner, with the approval 
196.36 	of the commissioner of management and 
197.1 	budget, and after notification of the chairs 
197.2 	of the relevant senate budget division and 
197.3 	house of representatives finance division, 
197.4 	may adjust the amount of TANF transfers 
197.5 	between the MFIP transition year child care 
197.6 	assistance program and MFIP grant programs 
197.7 	within the fiscal year and within the current 
197.8 	biennium and the biennium ending June 30, 
197.9 	2013, to ensure that state and federal match 
197.10 	and maintenance of effort requirements are 
197.11 	met. These transfers and amounts shall be 
197.12 	reported to the chairs of the senate and house 
197.13 	of representatives Finance Committees, the 
197.14 	senate Health and Human Services Budget 
197.15 	Division, and the house of representatives 
197.16 	Health Care and Human Services Finance 
197.17 	Division and Early Childhood Finance and 
197.18 	Policy Division by December 1 of each 
197.19 	fiscal year. Notwithstanding any contrary 
197.20 	provision in this article, this paragraph 
197.21 	expires June 30, 2013.
197.22 	SNAP Enhanced Administrative Funding.
197.23 	The funds available for administration 
197.24 	of the Supplemental Nutrition Assistance 
197.25 	Program under the Department of Defense 
197.26 	Appropriations Act of 2010, Public 
197.27 	Law 111-118, are appropriated to the 
197.28 	commissioner to pay the actual costs 
197.29 	of providing for increased eligibility 
197.30 	determinations, caseload-related costs, 
197.31 	timely application processing, and quality 
197.32 	control. Of these funds, 20 percent shall 
197.33 	be allocated to the commissioner and 80 
197.34 	percent shall be allocated to counties. 
197.35 	The commissioner shall allocate the 
197.36 	county portion based on recent caseload. 
198.1 	Reimbursement shall be based on actual 
198.2 	costs reported by counties through existing 
198.3 	processes. Tribal reimbursement must be 
198.4 	made from the state portion, based on a 
198.5 	caseload factor equivalent to that of a county.
198.6 	TANF Summer Food Programs - 
198.7 	TANF Emergency Fund Non-Recurrent 
198.8 	Short-Term Benefits. In addition to the 
198.9 	TANF emergency fund (TEF) non-recurrent 
198.10 	short-term benefits provided in this 
198.11 	subdivision, the commissioner may 
198.12 	supplement funds available under Minnesota 
198.13 	Statutes, section 256E.34 to provide for 
198.14 	summer food programs to the extent such 
198.15 	funds are available and eligible to leverage 
198.16 	TANF emergency funds non-recurrent 
198.17 	benefits. The commissioner may contract 
198.18 	directly with providers or third-party funders 
198.19 	to maximize these TANF emergency fund 
198.20 	grants. Up to $800,000 of TEF non-recurrent 
198.21 	short-term benefit earnings may be used in 
198.22 	this program. This paragraph is effective the 
198.23 	day following final enactment.
198.24 	TANF Transfer to Federal Child 
198.25 	Care and Development Fund. Of the 
198.26 	TANF appropriation in fiscal year 2011, 
198.27 	$12,500,000 is to the commissioner for 
198.28 	the purposes of MFIP and transition year 
198.29 	child care under Minnesota Statutes, section 
198.30 	119B.05. The commissioner shall authorize 
198.31 	the transfer of sufficient TANF funds to the 
198.32 	federal child care and development fund to 
198.33 	meet this appropriation and shall ensure that 
198.34 	all transferred funds are expended according 
198.35 	to federal child care and development fund 
198.36 	regulations.
199.1 	Special Revenue Fund Transfers. (a) The 
199.2 	commissioner shall transfer the following 
199.3 	amounts from special revenue fund balances 
199.4 	to the general fund by June 30 of each 
199.5 	respective fiscal year: $613,000 in fiscal year 
199.6 	2010, and $493,000 in fiscal year 2011. This 
199.7 	provision is effective the day following final 
199.8 	enactment.
199.9 	(b) The actual transfers made under 
199.10 	paragraph (a) must be separately identified 
199.11 	and reported as part of the quarterly reporting 
199.12 	of transfers to the chairs of the relevant senate 
199.13 	budget division and house of representatives 
199.14 	finance division.

199.15	Subd. 2.Agency Management 

199.16	(a)  Financial Operations
		-0-
		103,000
	
199.17 	Base Adjustment.  The general fund base is 
199.18 	decreased by $10,000 in fiscal year 2012 and 
199.19 	$10,000 in fiscal year 2013.

199.20	(b)  Legal and Regulatory Operations
		-0-
		114,000
	
199.21 	Base Adjustment.  The general fund base is 
199.22 	decreased by $18,000 in fiscal year 2012 and 
199.23 	$18,000 in fiscal year 2013.

199.24	(c) Management Operations
		-0-
		(114,000)
	
199.25 	Base Adjustment.  The general fund base is 
199.26 	increased by $18,000 in fiscal year 2012 and 
199.27 	$18,000 in fiscal year 2013.

199.28	(d) Information Technology Operations
		-0-
		(2,500,000)
	
199.29 	Base Adjustment. The general fund base is 
199.30 	decreased by $1,666,000 in fiscal year 2012 
199.31 	and $1,666,000 in fiscal year 2013.

199.32
199.33	Subd. 3.Revenue and Pass-Through Revenue 
Expenditures
 		8,000,000
		20,000,000
	
200.1 	These appropriations are from the federal 
200.2 	TANF fund.
200.3 	TANF Funding for the Working Family 
200.4 	Tax Credit. In addition to the amounts 
200.5 	specified in Minnesota Statutes, section 
200.6 	290.0671, subdivision 6, $15,500,000 
200.7 	of TANF funds in fiscal year 2010 are 
200.8 	appropriated to the commissioner to 
200.9 	reimburse the general fund for the cost of 
200.10 	the working family tax credit for eligible 
200.11 	families. With respect to the amounts 
200.12 	appropriated for fiscal year 2010, the 
200.13 	commissioner shall reimburse the general 
200.14 	fund by June 30, 2010. This paragraph is 
200.15 	effective the day following final enactment.
200.16 	Child Care Development Fund 
200.17 	Unexpended Balance. In addition to 
200.18 	the amount provided in this section, the 
200.19 	commissioner shall carry over and expend 
200.20 	in fiscal year 2011 $7,500,000 of the TANF 
200.21 	funds transferred in fiscal year 2010 that 
200.22 	reflect the child care and development fund 
200.23 	unexpended balance for the basic sliding 
200.24 	fee child care assistance program under 
200.25 	Minnesota Statutes, section 119B.03. The 
200.26 	commissioner shall ensure that all funds are 
200.27 	expended according to the federal child care 
200.28 	and development fund regulations relating to 
200.29 	the TANF transfers.
200.30 	Base Adjustment. The general fund base is 
200.31 	increased by $7,500,000 in fiscal year 2012 
200.32 	and $7,500,000 in fiscal year 2013.

200.33	Subd. 4.Economic Support Grants

200.34	(a) Support Services Grants
		-0-
		-0-
	
201.1 	Base Adjustment. The federal TANF fund 
201.2 	base is decreased by $5,004,000 in fiscal year 
201.3 	2012 and $5,004,000 in fiscal year 2013.

201.4	(b) MFIP/DWP Grants
		-0-
		(1,583,000)

201.5
201.6	(c) Basic Sliding Fee Child Care Assistance 
Grants
		-0-
		(7,500,000)

201.7	(d) Children's Services Grants
		(900,000)
		-0-
	
201.8 	Adoption Assistance. Of the appropriation 
201.9 	reduction in fiscal year 2010, $900,000 is 
201.10 	from the adoption assistance program. This 
201.11 	reduction is onetime.

201.12	(e) Child and Community Services Grants
		-0-
		(16,750,000)
	
201.13 	Base adjustment. The general fund is 
201.14 	increased by $13,509,000 in fiscal year 2012 
201.15 	and $13,509,000 in fiscal year 2013.

201.16	(f) Group Residential Housing Grants
		-0-
		84,000
	
201.17 	Reduction of Supplemental Service Rate.
201.18 	Effective July 1, 2011, to June 30, 2013, 
201.19 	the commissioner shall decrease the group 
201.20 	residential housing supplementary service 
201.21 	rate under Minnesota Statutes, section 
201.22 	256I.05, subdivision 1a, by five percent 
201.23 	for services rendered on or after that date, 
201.24 	except that reimbursement rates for a group 
201.25 	residential housing facility reimbursed as a 
201.26 	nursing facility shall not be reduced. The 
201.27 	reduction in this paragraph is in addition to 
201.28 	the reduction under Laws 2009, chapter 79, 
201.29 	article 8, section 79, paragraph (b), clause 
201.30 	(11).
201.31 	Base Adjustment. The general fund base is 
201.32 	decreased by $784,000 in fiscal year 2012 
201.33 	and $784,000 in fiscal year 2013.

201.34	(g) Children's Mental Health Grants
		(200,000)
		(200,000)

202.1
202.2	(h) Other Children's and Economic Assistance 
Grants
		400,000
		213,000
	
202.3 	Minnesota Food Assistance Program.  Of 
202.4 	the 2011 appropriation, $150,000 is for the 
202.5 	Minnesota Food Assistance Program. This 
202.6 	appropriation is onetime.
202.7 	Of this appropriation, $400,000 in fiscal 
202.8 	year 2010 and $63,000 in fiscal year 2011 
202.9 	is for food shelf programs under Minnesota 
202.10 	Statutes, section 256E.34. This appropriation 
202.11 	is available until spent.
202.12 	Base Adjustment. The general fund base is 
202.13 	decreased by $20,000 in fiscal year 2012 and 
202.14 	decreased by $510,000 in fiscal year 2013.

202.15
202.16	Subd. 5.Children and Economic Assistance 
Management

202.17
202.18	(a) Children and Economic Assistance 
Administration
		-0-
		-0-
	
202.19 	Base Adjustment. The federal TANF fund 
202.20 	base is decreased by $700,000 in fiscal year 
202.21 	2012 and $700,000 in fiscal year 2013.

202.22
202.23	(b) Children and Economic Assistance 
Operations
		-0-
		195,000
	
202.24 	Base Adjustment. The general fund base is 
202.25 	decreased by $12,000 in fiscal year 2012 and 
202.26 	$12,000 in fiscal year 2013.

202.27	Subd. 6.Health Care Grants

202.28	(a) MinnesotaCare Grants
		998,000
		4,269,000
	
202.29 	This appropriation is from the health care 
202.30 	access fund.
202.31 	Health Care Access Fund Transfer to 
202.32 	General Fund. The commissioner of 
202.33 	management and budget shall transfer 
202.34 	$998,000 in fiscal year 2010 and 
203.1 	$194,404,000 in fiscal year 2011 from the 
203.2 	health care access fund to the general fund. 
203.3 	This paragraph is effective the day following 
203.4 	final enactment.
203.5 	The amount of this transfer is $178,682,000 
203.6 	in fiscal year 2012 and $286,150,000 in fiscal 
203.7 	year 2013.
203.8 	MinnesotaCare Ratable Reduction.
203.9 	Effective for services rendered on or 
203.10 	after July 1, 2010, to December 31, 2013, 
203.11 	MinnesotaCare payments to managed care 
203.12 	plans under Minnesota Statutes, section 
203.13 	256L.12, for single adults and households 
203.14 	without children whose income is greater 
203.15 	than 75 percent of federal poverty guidelines 
203.16 	shall be reduced by 15 percent. Effective 
203.17 	for services provided from July 1, 2010, to 
203.18 	June 30, 2011, this reduction shall apply to 
203.19 	all services. Effective for services provided 
203.20 	from July 1, 2011, to December 31, 2013, this 
203.21 	reduction shall apply to all services except 
203.22 	inpatient hospital services. Notwithstanding 
203.23 	any contrary provision of this article, this 
203.24 	paragraph shall expire on December 31, 
203.25 	2013.

203.26
203.27	(b) Medical Assistance Basic Health Care 
Grants - Families and Children
		-0-
		314,662,000
	
203.28 	Critical Access Dental. Of the general 
203.29 	fund appropriation, $731,000 in fiscal year 
203.30 	2011 is to the commissioner for critical 
203.31 	access dental provider reimbursement 
203.32 	payments under Minnesota Statutes, section 
203.33 	256B.76 subdivision 4. This is a onetime 
203.34 	appropriation.
204.1 	Nonadministrative Rate Reduction. For 
204.2 	services rendered on or after July 1, 2010, 
204.3 	to December 31, 2013, the commissioner 
204.4 	shall reduce contract rates paid to managed 
204.5 	care plans under Minnesota Statutes, 
204.6 	sections 256B.69 and 256L.12, and to 
204.7 	county-based purchasing plans under 
204.8 	Minnesota Statutes, section 256B.692, by 
204.9 	three percent of the contract rate attributable 
204.10 	to nonadministrative services in effect on 
204.11 	June 30, 2010. Notwithstanding any contrary 
204.12 	provision in this article, this rider expires on 
204.13 	December 31, 2013.

204.14
204.15	(c) Medical Assistance Basic Health Care 
Grants - Elderly and Disabled
		-0-
		(6,309,000)
	
204.16 	MnDHO Transition. Of the general fund 
204.17 	appropriation for fiscal year 2011, $250,000 
204.18 	is to the commissioner to be made available 
204.19 	to county agencies to assist in the transition 
204.20 	of the approximately 1,290 current MnDHO 
204.21 	members to the fee-for-service Medicaid 
204.22 	program or another managed care option by 
204.23 	January 1, 2011.
204.24 	County agencies shall work with the 
204.25 	commissioner, health plans, and MnDHO 
204.26 	members and their legal representatives to 
204.27 	develop and implement transition plans that 
204.28 	include:
204.29 	(1) identification of service needs of MnDHO 
204.30 	members based on the current assessment or 
204.31 	through the completion of a new assessment;
204.32 	(2) identification of services currently 
204.33 	provided to MnDHO members and which 
204.34 	of those services will continue to be 
204.35 	reimbursable through fee-for-service 
205.1 	or another managed care option under 
205.2 	the Medicaid state plan or a home and 
205.3 	community-based waiver program;
205.4 	(3) identification of service providers who do 
205.5 	not have a contract with the county or who 
205.6 	are currently reimbursed at a different rate 
205.7 	than the county contracted rate; and
205.8 	(4) development of an individual service 
205.9 	plan that is within allowable waiver funding 
205.10 	limits.

205.11	(d) General Assistance Medical Care Grants
		-0-
		(75,389,000)

205.12	(e)  Other Health Care Grants
		-0-
		(7,000,000)
	
205.13 	Cobra Carryforward. Unexpended funds 
205.14 	appropriated in fiscal year 2010 for COBRA 
205.15 	grants under Laws 2009, chapter 79, article 
205.16 	5, section 78, do not cancel and are available 
205.17 	to the commissioner for fiscal year 2011 
205.18 	COBRA grant expenditures. Up to $111,000 
205.19 	of the fiscal year 2011 appropriation for 
205.20 	COBRA grants provided in Laws 2009, 
205.21 	chapter 79, article 13, section 3, subdivision 
205.22 	6, may be used by the commissioner for costs 
205.23 	related to administration of the COBRA 
205.24 	grants.

205.25	Subd. 7.Health Care Management

205.26	(a) Health Care Administration
		-0-
		442,000
	
205.27 	Fiscal Note Report. Of this appropriation, 
205.28 	$50,000 in fiscal year 2011 is for a transfer to 
205.29 	the commissioner of Minnesota Management 
205.30 	and Budget for the completion of the human 
205.31 	services fiscal note report in article 5.
205.32 	PACE Implementation Funding. For fiscal 
205.33 	year 2011, $145,000 is appropriated from 
205.34 	the general fund to the commissioner of 
206.1 	human services to complete the actuarial and 
206.2 	administrative work necessary to begin the 
206.3 	operation of PACE under Minnesota Statutes, 
206.4 	section 256B.69, subdivision 23, paragraph 
206.5 	(e). Base level funding for this activity shall 
206.6 	be $130,000 in fiscal year 2012 and $0 in 
206.7 	fiscal year 2013.
206.8 	Minnesota Senior Health Options 
206.9 	Reimbursement. Effective July 1, 2011, 
206.10 	federal administrative reimbursement 
206.11 	resulting from the Minnesota senior 
206.12 	health options project is appropriated 
206.13 	to the commissioner for this activity. 
206.14 	Notwithstanding any contrary provision, this 
206.15 	provision expires June 30, 2013.
206.16 	Utilization Review. Effective July 1, 
206.17 	2011, federal administrative reimbursement 
206.18 	resulting from prior authorization and 
206.19 	inpatient admission certification by a 
206.20 	professional review organization shall be 
206.21 	dedicated to, and is appropriated to, the 
206.22 	commissioner for these activities. A portion 
206.23 	of these funds must be used for activities 
206.24 	to decrease unnecessary pharmaceutical 
206.25 	costs in medical assistance. Notwithstanding 
206.26 	any contrary provision of this article, this 
206.27 	paragraph expires June 30, 2013.
206.28 	Certified Public Expenditures. (1) The 
206.29 	entities named in Minnesota Statutes, section 
206.30 	256B.199, paragraph (b), clause (1), shall 
206.31 	comply with the requirements of that statute 
206.32 	by promptly reporting on a quarterly basis 
206.33 	certified public expenditures that may qualify 
206.34 	for federal matching funds. Reporting under 
206.35 	this paragraph shall be voluntary from July 1, 
207.1 	2010, to December 31, 2010. Upon federal 
207.2 	enactment of an extension to June 30, 2011, 
207.3 	of the enhanced federal medical assistance 
207.4 	percentage (FMAP) originally provided 
207.5 	under Public Law 111-5, reporting under 
207.6 	this paragraph shall also be voluntary from 
207.7 	January 1, 2011, to June 30, 2011.
207.8 	(2) To the extent that certified public 
207.9 	expenditures reported in compliance 
207.10 	with paragraph (1) earn federal matching 
207.11 	payments that exceed $8,079,000 in fiscal 
207.12 	year 2012 and $18,316,000 in fiscal year 
207.13 	2013, the excess amount shall be deposited 
207.14 	in the health care access fund. For each fiscal 
207.15 	year after fiscal year 2013, the commissioner 
207.16 	shall forecast in November the amount 
207.17 	of federal payments anticipated to match 
207.18 	certified public expenditures reported in 
207.19 	compliance with paragraph (a). Any federal 
207.20 	match earned in a fiscal year in excess of 
207.21 	the amount forecasted in November shall be 
207.22 	deposited to the health care access fund.
207.23 	(3) Notwithstanding any contrary provision 
207.24 	of this article, this rider shall not expire.
207.25 	Poverty Guidelines. Notwithstanding 
207.26 	Minnesota Statutes, sections 256B.56, 
207.27 	subdivision 1c; 256D.03, subdivision 3; 
207.28 	or 256L.04, subdivision 7b, the poverty 
207.29 	guidelines for medical assistance, general 
207.30 	assistance medical care, and MinnesotaCare 
207.31 	from July 1, 2010, through June 30, 2011, 
207.32 	shall not be lower than the poverty guidelines 
207.33 	issued by the Secretary of Health and Human 
207.34 	Services on January 23, 2009. This section 
207.35 	shall have no effect on the revision of poverty 
208.1 	guidelines for the Minnesota health care 
208.2 	programs that would be in effect starting on 
208.3 	July 1, 2011. This paragraph is effective the 
208.4 	day following final enactment.
208.5 	Base Adjustment. The general fund base is 
208.6 	decreased by $227,000 in fiscal year 2012 
208.7 	and $357,000 in fiscal year 2013.

208.8	(b) Health Care Operations

208.9	Appropriations by Fund
	
208.10	General
	-0-
	186,000
	
208.11	Health Care Access
	-0-
	218,000
	
208.12 	The general fund appropriation is a onetime 
208.13 	appropriation in fiscal year 2011.
208.14 	Base Adjustment. The health care access 
208.15 	fund base for health care operations is 
208.16 	decreased by $812,000 in fiscal year 2012 
208.17 	and $944,000 in fiscal year 2013.

208.18	Subd. 8.Continuing Care Grants

208.19	(a) Aging and Adult Services Grants
		-0-
		(1,113,000)
	
208.20 	Base Adjustment. The general fund 
208.21 	base for aging and adult services grants is 
208.22 	increased by $974,000 in fiscal year 2012 
208.23 	and $1,113,000 in fiscal year 2013.
208.24 	Community Service Development 
208.25 	Reduction. The appropriation in Laws 
208.26 	2009, chapter 79, article 13, section 3, 
208.27 	subdivision 8, paragraph (a), for community 
208.28 	service development grants, as amended by 
208.29 	Laws 2009, chapter 173, article 2, section 
208.30 	1, subdivision 8, paragraph (a), is reduced 
208.31 	by $154,000 in fiscal year 2011. The 
208.32 	appropriation base is reduced by $139,000 
208.33 	for fiscal year 2012 and $0 for fiscal year 
208.34 	2013. Notwithstanding any law or rule to 
209.1 	the contrary, this provision expires June 30, 
209.2 	2012.

209.3
209.4	(b) Medical Assistance Long-Term Care 
Facilities Grants
		-0-
		3,864,000
	
209.5 	ICF/MR Occupancy Rate Adjustment 
209.6 	Suspension. Effective for fiscal years 2012 
209.7 	and 2013, approval of new applications for 
209.8 	occupancy rate adjustments for unoccupied 
209.9 	short-term beds under Minnesota Statutes, 
209.10 	section 256B.5013, subdivision 7, is 
209.11 	suspended.
209.12 	Kandiyohi County; ICF/MR Payment 
209.13 	Rate. $36,000 is appropriated from the 
209.14 	general fund in fiscal year 2011 and $4,000 
209.15 	in fiscal year 2012 to increase payment rates 
209.16 	for an ICF/MR licensed for six beds and 
209.17 	located in Kandiyohi County to serve persons 
209.18 	with high behavioral needs. The payment 
209.19 	rate increase shall be effective for services 
209.20 	provided from July 1, 2010, through June 30, 
209.21 	2011. These appropriations are onetime.

209.22
209.23	(c) Medical Assistance Long-Term Care 
Waivers and Home Care Grants
		-0-
		(4,035,000)
	
209.24 	Manage Growth in Traumatic Brain 
209.25 	Injury and Community Alternatives for 
209.26 	Disabled Individuals Waivers. During 
209.27 	the fiscal year beginning July 1, 2010, the 
209.28 	commissioner shall allocate money for home 
209.29 	and community-based waiver programs 
209.30 	under Minnesota Statutes, section 256B.49, 
209.31 	to ensure a reduction in state spending that is 
209.32 	equivalent to limiting the caseload growth 
209.33 	of the traumatic brain injury waiver to six 
209.34 	allocations per month and the community 
209.35 	alternatives for disabled individuals waiver 
209.36 	to 60 allocations per month. The limits do not 
210.1 	apply: (1) when there is an approved plan for 
210.2 	nursing facility bed closures for individuals 
210.3 	under age 65 who require relocation due to 
210.4 	the bed closure; (2) to fiscal year 2009 waiver 
210.5 	allocations delayed due to unallotment; or (3) 
210.6 	to transfers authorized by the commissioner 
210.7 	from the personal care assistance program 
210.8 	of individuals having a home care rating of 
210.9 	CS, MT, or HL. Priorities for the allocation 
210.10 	of funds must be for individuals anticipated 
210.11 	to be discharged from institutional settings or 
210.12 	who are at imminent risk of a placement in 
210.13 	an institutional setting.
210.14 	Manage Growth in the Developmental 
210.15 	Disability (DD) Waiver. The commissioner 
210.16 	shall manage the growth in the developmental 
210.17 	disability waiver by limiting the allocations 
210.18 	included in the November 2010 forecast to 
210.19 	six additional diversion allocations each 
210.20 	month for the calendar year that begins on 
210.21 	January 1, 2011. Additional allocations must 
210.22 	be made available for transfers authorized 
210.23 	by the commissioner from the personal care 
210.24 	assistance program of individuals having a 
210.25 	home care rating of CS, MT, or HL. This 
210.26 	provision is effective through December 31, 
210.27 	2011.

210.28	(d) Adult Mental Health Grants
		(3,500,000)
		(300,000)
	
210.29 	Compulsive Gambling Special Revenue 
210.30 	Account. $149,000 for fiscal year 2010 
210.31 	and $27,000 for fiscal year 2011 from 
210.32 	the compulsive gambling special revenue 
210.33 	account established under Minnesota 
210.34 	Statutes, section 245.982, shall be transferred 
210.35 	and deposited into the general fund by 
211.1 	June 30 of each respective fiscal year. This 
211.2 	paragraph is effective the day following final 
211.3 	enactment.
211.4 	Compulsive Gambling Lottery Prize 
211.5 	Fund. The lottery prize fund appropriation 
211.6 	for compulsive gambling is reduced by 
211.7 	$80,000 in fiscal year 2010 and $79,000 in 
211.8 	fiscal year 2011. This is a onetime reduction.
211.9 	Culturally Specific Treatment. The 
211.10 	appropriation for culturally specific treatment 
211.11 	is reduced by $300,000 in fiscal year 2011. 
211.12 	This is a onetime reduction.
211.13 	(1) Of the fiscal year 2010 general fund 
211.14 	appropriation for grants to counties for 
211.15 	housing with support services for adults 
211.16 	with serious and persistent mental illness, 
211.17 	$3,300,000 is canceled and returned to the 
211.18 	general fund.
211.19 	(2) Of the fiscal year 2010 general 
211.20 	fund appropriation for additional crisis 
211.21 	intervention team training for law 
211.22 	enforcement, $200,000 is canceled and 
211.23 	returned to the general fund.
211.24 	Base Adjustment. The general fund base 
211.25 	is increased by $300,000 in fiscal year 2012 
211.26 	and $300,000 in fiscal year 2013.

211.27	(e) Chemical Dependency Entitlement Grants
		-0-
		(2,433,000)

211.28
211.29	(f) Chemical Dependency Nonentitlement 
Grants
		(389,000)
		-0-
	
211.30 	Base adjustment. The general fund base is 
211.31 	reduced by $393,000 in fiscal year 2012 and 
211.32 	fiscal year 2013.
211.33 	Chemical Health. Of the fiscal year 2010 
211.34 	general fund appropriation to Mother's First 
212.1 	and the Native American Program, $389,000 
212.2 	is canceled and returned to the general fund.

212.3	(g) Other Continuing Care Grants
		-0-
		350,000
	
212.4 	 This is a onetime appropriation in fiscal year 
212.5 	2011.
212.6 	Region 10 Quality Assurance Commission.
212.7 	$100,000 is appropriated from the general 
212.8 	fund in fiscal year 2011 to the commissioner 
212.9 	of human services for the purposes 
212.10 	of the Region 10 Quality Assurance 
212.11 	Commission under Minnesota Statutes, 
212.12 	section 256B.0951. This appropriation is 
212.13 	onetime.

212.14	Subd. 9.Continuing Care Management
 		-0-
		296,000
	
212.15 	PACE Implementation Funding. For fiscal 
212.16 	year 2011, $111,000 is appropriated from 
212.17 	the general fund to the commissioner of 
212.18 	human services to complete the actuarial 
212.19 	and administrative work necessary to begin 
212.20 	the operation of PACE under Minnesota 
212.21 	Statutes, section 256B.69, subdivision 23, 
212.22 	paragraph (e). Base level funding for this 
212.23 	activity shall be $101,000 in fiscal year 2012 
212.24 	and $0 in fiscal year 2013. For fiscal year 
212.25 	2013 and beyond, the commissioner must 
212.26 	work with stakeholders to develop financing 
212.27 	mechanisms to complete the actuarial 
212.28 	and administrative costs of PACE. The 
212.29 	commissioner shall inform the chairs and 
212.30 	ranking minority members of the legislative 
212.31 	committee with jurisdiction over health care 
212.32 	funding by January 15, 2011, on progress to 
212.33 	develop financing mechanisms.
212.34 	Base Adjustment. The general fund base for 
212.35 	continuing care management is increased by 
213.1 	$7,000 in fiscal year 2012 and decreased by 
213.2 	$94,000 in fiscal year 2013.

213.3	Subd. 10.State-Operated Services
 					
213.4 	Obsolete Laundry Depreciation Account.
213.5 	$669,000, or the balance, whichever is 
213.6 	greater, must be transferred from the 
213.7 	state-operated services laundry depreciation 
213.8 	account in the special revenue fund and 
213.9 	deposited into the general fund by June 30, 
213.10 	2010. This paragraph is effective the day 
213.11 	following final enactment.
213.12 	Operating Budget Reductions. No 
213.13 	operating budget reductions enacted in Laws 
213.14 	2010, chapter 200, or in this act shall be 
213.15 	allocated to state-operated services.
213.16 	Prohibition on Transferring Funds. The 
213.17 	commissioner shall not transfer mental 
213.18 	health grants to state-operated services 
213.19 	without specific legislative approval. 
213.20 	Notwithstanding any contrary provision in 
213.21 	this article, this paragraph shall not expire.

213.22	(a) Adult Mental Health Services
		-0-
		6,888,000
	
213.23 	Base Adjustment. The general fund base is 
213.24 	decreased by $12,286,000 in fiscal year 2012 
213.25 	and $12,394,000 in fiscal year 2013.
213.26 	Appropriation Requirements.  (a) 
213.27 	The general fund appropriation to the 
213.28 	commissioner includes funding for the 
213.29 	following:
213.30 	(1) to a community collaborative to begin 
213.31 	providing crisis center services in the 
213.32 	Mankato area that are comparable to 
213.33 	the crisis services provided prior to the 
213.34 	closure of the Mankato Crisis Center. The 
214.1 	commissioner shall recruit former employees 
214.2 	of the Mankato Crisis Center who were 
214.3 	recently laid off to staff the new crisis 
214.4 	services. The commissioner shall obtain 
214.5 	legislative approval prior to discontinuing 
214.6 	this funding;
214.7 	(2) to maintain the building in Eveleth 
214.8 	that currently houses community transition 
214.9 	services and to establish a psychiatric 
214.10 	intensive therapeutic foster home as an 
214.11 	enterprise activity. The commissioner shall 
214.12 	request a waiver amendment to allow CADI 
214.13 	funding for psychiatric intensive therapeutic 
214.14 	foster care services provided in the same 
214.15 	location and building as the community 
214.16 	transition services. If the federal government 
214.17 	does not approve the waiver amendment, the 
214.18 	commissioner shall continue to pay the lease 
214.19 	for the building out of the state-operated 
214.20 	services budget until the commissioner of 
214.21 	administration subleases the space or until 
214.22 	the lease expires, and shall establish the 
214.23 	psychiatric intensive therapeutic foster home 
214.24 	at a different site. The commissioner shall 
214.25 	make diligent efforts to sublease the space;
214.26 	(3) to convert the community behavioral 
214.27 	health hospitals in Wadena and Willmar to 
214.28 	facilities that provide more suitable services 
214.29 	based on the needs of the community, 
214.30 	which may include, but are not limited to, 
214.31 	psychiatric extensive recovery treatment 
214.32 	services. The commissioner may also 
214.33 	establish other community-based services in 
214.34 	the Willmar and Wadena areas that deliver 
214.35 	the appropriate level of care in response to 
214.36 	the express needs of the communities. The 
215.1 	services established under this provision 
215.2 	must be staffed by state employees.
215.3 	(4) to continue the operation of the dental 
215.4 	clinics in Brainerd, Cambridge, Faribault, 
215.5 	Fergus Falls, and Willmar at the same level of 
215.6 	care and staffing that was in effect on March 
215.7 	1, 2010. The commissioner shall not proceed 
215.8 	with the planned closure of the dental 
215.9 	clinics, and shall not discontinue services or 
215.10 	downsize any of the state-operated dental 
215.11 	clinics without specific legislative approval. 
215.12 	The commissioner shall continue to bill 
215.13 	for services provided to obtain medical 
215.14 	assistance critical access dental payments 
215.15 	and cost-based payment rates as provided 
215.16 	in Minnesota Statutes, section 256B.76, 
215.17 	subdivision 2, and shall bill for services 
215.18 	provided three months retroactively from 
215.19 	the date of this act. This appropriation is 
215.20 	onetime;
215.21 	(5) to convert the Minnesota 
215.22 	Neurorehabilitation Hospital in Brainerd 
215.23 	to a neurocognitive psychiatric extensive 
215.24 	recovery treatment service; and
215.25 	(6) to convert the Minnesota extended 
215.26 	treatment options (METO) program to 
215.27 	the following community-based services 
215.28 	provided by state employees: (i) psychiatric 
215.29 	extensive recovery treatment services; 
215.30 	(ii) intensive transitional foster homes 
215.31 	as enterprise activities; and (iii) other 
215.32 	community-based support services. The 
215.33 	provisions under Minnesota Statutes, section 
215.34 	252.025, subdivision 7, are applicable to 
215.35 	the METO services established under this 
216.1 	clause. Notwithstanding Minnesota Statutes, 
216.2 	section 246.18, subdivision 8, any revenue 
216.3 	lost to the general fund by the conversion 
216.4 	of METO to new services must be replaced 
216.5 	by revenue from the new services to offset 
216.6 	the lost revenue to the general fund until 
216.7 	June 30, 2013. Any revenue generated in 
216.8 	excess of this amount shall be deposited into 
216.9 	the special revenue fund under Minnesota 
216.10 	Statutes, section 246.18, subdivision 8.
216.11 	(b) The commissioner shall not move beds 
216.12 	from the Anoka-Metro Regional Treatment 
216.13 	Center to the psychiatric nursing facility 
216.14 	at St. Peter without specific legislative 
216.15 	approval.
216.16 	(c) The commissioner shall implement 
216.17 	changes, including the following, to save a 
216.18 	minimum of $6,006,000 beginning in fiscal 
216.19 	year 2011, and report to the legislature the 
216.20 	specific initiatives implemented and the 
216.21 	savings allocated to each one, including:
216.22 	(1) maximizing budget savings through 
216.23 	strategic employee staffing; and
216.24 	(2) identifying and implementing cost 
216.25 	reductions in cooperation with state-operated 
216.26 	services employees.
216.27 	Base level funding is reduced by $6,006,000 
216.28 	effective fiscal year 2011.
216.29 	(d) The commissioner shall seek certification 
216.30 	or approval from the federal government for 
216.31 	the new services under paragraph (a) that are 
216.32 	eligible for federal financial participation 
216.33 	and deposit the revenue associated with 
216.34 	these new services in the account established 
217.1 	under Minnesota Statutes, section 246.18, 
217.2 	subdivision 8, unless otherwise specified.
217.3 	(e) Notwithstanding any contrary provision 
217.4 	in this article, this rider shall not expire.

217.5	(b) Minnesota Sex Offender Services
		-0-
		(145,000)
	
217.6 	Sex Offender Services. Base level funding 
217.7 	for Minnesota sex offender services is 
217.8 	reduced by $418,000 in fiscal year 2012 and 
217.9 	$419,000 in fiscal year 2013 for the 50-bed 
217.10 	sex offender treatment program within the 
217.11 	Moose Lake correctional facility in which 
217.12 	Department of Human Services staff from 
217.13 	Minnesota sex offender services provide 
217.14 	clinical treatment to incarcerated offenders. 
217.15 	This reduction shall become part of the base 
217.16 	for the Department of Human Services.
217.17 	Interagency Agreements. The 
217.18 	commissioner of human services may 
217.19 	enter into interagency agreements with the 
217.20 	commissioner of corrections to continue sex 
217.21 	offender treatment and chemical dependency 
217.22 	treatment on a cost-sharing basis, in which 
217.23 	each department pays 50 percent of the costs 
217.24 	of these services.
217.25 	Base Adjustment. The general fund base 
217.26 	is increased by $418,000 in fiscal year 2012 
217.27 	and $419,000 in fiscal year 2013.

217.28	Sec. 4. COMMISSIONER OF HEALTH

217.29	Subdivision 1.Total Appropriation
 	$
	(2,392,000)
	$
	2,310,000

217.30	Appropriations by Fund
	
217.31		2010
	2011
	
217.32	General
	(2,392,000)
	2,064,000
	
217.33
217.34	State Government 
Special Revenue
	-0-
	9,000
	
217.35	Health Care Access
	-0-
	237,000

218.1	Subd. 2.Community and Family Health
 		(221,000)
		953,000
	
218.2 	Base Level Adjustment. The general fund 
218.3 	base is decreased by $1,388,000 in fiscal 
218.4 	years 2012 and 2013.
218.5 	Positive Alternatives. Of the general 
218.6 	fund appropriation, $1,000,000 in fiscal 
218.7 	year 2011 is to the commissioner for 
218.8 	positive alternatives grants under Minnesota 
218.9 	Statutes, section 145.4235. This is a onetime 
218.10 	appropriation.

218.11	Subd. 3.Policy, Quality, and Compliance

218.12	Appropriations by Fund
	
218.13		2010
	2011
	
218.14	General
	(1,797,000)
	497,000
	
218.15
218.16	State Government 
Special Revenue
	-0-
	9,000
	
218.17	Health Care Access
	-0-
	237,000
	
218.18 	Health Care Reform. Funds appropriated 
218.19 	in Laws 2008, chapter 358, article 5, section 
218.20 	4, subdivision 3, for health reform activities 
218.21 	to implement Laws 2008, chapter 358, 
218.22 	article 4, are available until expended. 
218.23 	Notwithstanding any contrary provision in 
218.24 	this article, this provision shall not expire.
218.25 	Health Care Reform Task Force. $198,000 
218.26 	from the general fund is for expenses related 
218.27 	to the Health Care Reform Task Force 
218.28 	established under article 7. This is a onetime 
218.29 	appropriation.
218.30 	Rural Hospital Capital Improvement 
218.31 	Grants. Of the general fund reductions in 
218.32 	fiscal year 2010, $1,755,000 is for the rural 
218.33 	hospital capital improvement grant program.
218.34 	Section 125 Plans. The remaining balance 
218.35 	from the Laws 2008, chapter 358, article 5, 
219.1 	section 4, subdivision 3, appropriation for 
219.2 	Section 125 Plan Employer Incentives is 
219.3 	canceled.
219.4 	Birth Centers. Of the appropriation in fiscal 
219.5 	year 2011 from the state government special 
219.6 	revenue fund, $9,000 is to the commissioner 
219.7 	to license birth centers. Base level funding 
219.8 	for this activity shall be $7,000 in fiscal year 
219.9 	2012 and $7,000 in fiscal year 2013.
219.10 	Comprehensive Advanced Life Support 
219.11 	Program. Of the general fund appropriation, 
219.12 	$377,000 in fiscal year 2011 is to the 
219.13 	commissioner for the comprehensive 
219.14 	advanced life support educational program. 
219.15 	For fiscal year 2012, base level funding for 
219.16 	this program shall be $377,000.
219.17 	Advisory Group on Administrative 
219.18 	Expenses. Of the health care access fund 
219.19 	appropriation for fiscal year 2011, $39,000 is 
219.20 	to the commissioner for the advisory group 
219.21 	established under Minnesota Statutes, section 
219.22 	62D.31. This is a onetime appropriation.
219.23 	Base Level Adjustment. The general fund 
219.24 	base is decreased by $253,000 in fiscal year 
219.25 	2012 and $253,000 in fiscal year 2013. The 
219.26 	state government special revenue fund base 
219.27 	is decreased by $2,000 in fiscal year 2012 
219.28 	and $2,000 in fiscal year 2013.
219.29 	Office of Unlicensed Health Care Practice.
219.30 	Of the general fund appropriation, $74,000 
219.31 	in fiscal year 2011 is for the Office of 
219.32 	Unlicensed Complementary and Alternative 
219.33 	Health Care Practice. This is a onetime 
219.34 	appropriation.

219.35	Subd. 4.Health Protection
 		(374,000)
		714,000
	
220.1 	Lead Base Grant Program. Of the general 
220.2 	fund reduction, $25,000 in fiscal year 2010 
220.3 	and fiscal year 2011 is for the elimination 
220.4 	of state funding for the temporary lead-safe 
220.5 	housing base grant program.
220.6 	Birth Defects Information System. Of the 
220.7 	general fund appropriation for fiscal year 
220.8 	2011, $919,000 is for the Minnesota Birth 
220.9 	Defects Information System established 
220.10 	under Minnesota Statutes, section 144.2215.
220.11 	Base Adjustment. The general fund base 
220.12 	is increased by $440,000 in fiscal year 2012 
220.13 	and $984,000 in fiscal year 2013. 

220.14	Subd. 5.Administrative Support Services
 		-0-
		(100,000)
	
220.15 	The general fund base is decreased by 
220.16 	$22,000 in fiscal year 2012 and $22,000 in 
220.17 	fiscal year 2013.

220.18
220.19	Sec. 5. DEPARTMENT OF VETERANS 
AFFAIRS
 	$
	(50,000)
	$
	-0-
	
220.20 	Cancellation of Prior Appropriation.
220.21 	By June 30, 2010, the commissioner of 
220.22 	management and budget shall cancel the 
220.23 	$50,000 appropriation for fiscal year 2008 to 
220.24 	the board in Laws 2007, chapter 147, article 
220.25 	19, section 5, in the paragraph titled "Pay for 
220.26 	Performance."

220.27	Sec. 6. HEALTH-RELATED BOARDS

220.28	Subdivision 1.Total Appropriation
 	$
	113,000
	$
	615,000
	
220.29 	The appropriations in this section are from 
220.30 	the state government special revenue fund.
220.31 	In fiscal year 2010, $591,000 shall be 
220.32 	transferred from the state government special 
220.33 	revenue fund to the general fund. In fiscal 
221.1 	year 2011, $3,052,000 shall be transferred 
221.2 	from the state government special revenue 
221.3 	fund to the general fund. These transfers 
221.4 	are in addition to those made in Laws 2009, 
221.5 	chapter 79, article 13, section 5, as amended 
221.6 	by Laws 2009, chapter 173, article 2, section 
221.7 	3.
221.8 	The transfers in this section are onetime in 
221.9 	the fiscal year 2010-2011 biennium.
221.10 	The appropriations for each purpose are 
221.11 	shown in the following subdivisions.

221.12
221.13	Subd. 2.Board of Marriage and Family 
Therapy
 		47,000
		22,000
	
221.14 	Operating Costs and Rulemaking. Of 
221.15 	this appropriation, $22,000 in fiscal year 
221.16 	2010 and $22,000 in fiscal year 2011 are 
221.17 	for operating costs. This is an ongoing 
221.18 	appropriation. Of this appropriation, $25,000 
221.19 	in fiscal year 2010 is for rulemaking. This is 
221.20 	a onetime appropriation.

221.21
221.22	Subd. 3.Board of Nursing Home 
Administrators
 		51,000
		61,000

221.23	Subd. 4.Board of Pharmacy
 		-0-
		517,000
	
221.24 	Prescription Electronic Reporting. Of 
221.25 	the state government special revenue fund 
221.26 	appropriation, $517,000 in fiscal year 2011 
221.27 	is to the board to operate the prescription 
221.28 	electronic reporting system in Minnesota 
221.29 	Statutes, section 152.126. Base level funding 
221.30 	for this activity in fiscal year 2012 shall be 
221.31 	$356,000.

221.32	Subd. 5.Board of Podiatry
 		15,000
		15,000
	
222.1 	Purpose. This appropriation is to pay health 
222.2 	insurance coverage costs and to cover the 
222.3 	cost of expert witnesses in disciplinary cases.

222.4
222.5	Sec. 7. EMERGENCY MEDICAL SERVICES 
BOARD
 	$
	247,000
	$
	(382,000)

222.6	Sec. 8. UNIVERSITY OF MINNESOTA
 	$
	-0-
	$
	93,000
	
222.7 	This appropriation is from the special 
222.8 	revenue fund for the couples on the brink 
222.9 	program.

222.10	Sec. 9. DEPARTMENT OF CORRECTIONS
 	$
	-0-
	$
	-0-
	
222.11 	Sex Offender Services. From the general 
222.12 	fund appropriations to the commissioner of 
222.13 	corrections, the commissioner shall transfer 
222.14 	$418,000 in fiscal year 2012 and $419,000 
222.15 	in fiscal year 2013 to the commissioner of 
222.16 	human services to provide clinical treatment 
222.17 	to incarcerated offenders. This transfer shall 
222.18 	become part of the base for the Department 
222.19 	of Corrections.

222.20	Sec. 10. DEPARTMENT OF COMMERCE
 	$
	-0-
	$
	38,000
	
222.21 	Health Plan Filings. Of this appropriation:
222.22 	(1) $19,000 is for the review and approval 
222.23 	of new health plan filings due to Minnesota 
222.24 	Statutes, section 62Q.545. This is a onetime 
222.25 	appropriation in fiscal year 2011; and
222.26 	(2) $19,000 is for regulation of Minnesota 
222.27 	Statutes, section 62A.3075. This is a onetime 
222.28 	appropriation.

222.29 	Sec. 11. Minnesota Statutes 2008, section 214.40, subdivision 7, is amended to read:
222.30 		Subd. 7.Medical professional liability insurance. (a) Within the limit of funds 
222.31 	appropriated for this program, the administrative services unit must purchase medical 
223.1 	professional liability insurance, if available, for a health care provider who is registered in 
223.2 	accordance with subdivision 4 and who is not otherwise covered by a medical professional 
223.3 	liability insurance policy or self-insured plan either personally or through another facility 
223.4 	or employer. The administrative services unit is authorized to prorate payments or 
223.5 	otherwise limit the number of participants in the program if the costs of the insurance for 
223.6 	eligible providers exceed the funds appropriated for the program.
223.7 	(b) Coverage purchased under this subdivision must be limited to the provision of 
223.8 	health care services performed by the provider for which the provider does not receive 
223.9 	direct monetary compensation.

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

223.11 	Sec. 12. Laws 2009, chapter 79, article 13, section 3, subdivision 1, as amended by 
223.12 	Laws 2009, chapter 173, article 2, section 1, subdivision 1, is amended to read:

223.13	Subdivision 1.Total Appropriation
 	$
	5,225,451,000
	$
	6,002,864,000

223.14	Appropriations by Fund
	
223.15		2010
	2011
	
223.16	General
	4,375,689,000
	5,209,765,000
	
223.17
223.18	State Government 
Special Revenue
	565,000
	565,000
	
223.19	Health Care Access
	450,662,000
	527,411,000
	
223.20	Federal TANF
	286,770,000
	263,458,000
	
223.21	Lottery Prize
	1,665,000
	1,665,000
	
223.22	Federal Fund
	110,000,000
	0
	
223.23 	Receipts for Systems Projects.
223.24 	Appropriations and federal receipts for 
223.25 	information systems projects for MAXIS, 
223.26 	PRISM, MMIS, and SSIS must be deposited 
223.27 	in the state system account authorized in 
223.28 	Minnesota Statutes, section 256.014. Money 
223.29 	appropriated for computer projects approved 
223.30 	by the Minnesota Office of Enterprise 
223.31 	Technology, funded by the legislature, and 
223.32 	approved by the commissioner of finance, 
223.33 	may be transferred from one project to 
223.34 	another and from development to operations 
223.35 	as the commissioner of human services 
224.1 	considers necessary, except that any transfers 
224.2 	to one project that exceed $1,000,000 or 
224.3 	multiple transfers to one project that exceed 
224.4 	$1,000,000 in total require the express 
224.5 	approval of the legislature. The preceding 
224.6 	requirement for legislative approval does not 
224.7 	apply to transfers made to establish a project's 
224.8 	initial operating budget each year; instead, 
224.9 	the requirements of section 11, subdivision 
224.10 	2, of this article apply to those transfers. Any 
224.11 	unexpended balance in the appropriation 
224.12 	for these projects does not cancel but is 
224.13 	available for ongoing development and 
224.14 	operations. Any computer project with a 
224.15 	total cost exceeding $1,000,000, including, 
224.16 	but not limited to, a replacement for the 
224.17 	proposed HealthMatch system, shall not be 
224.18 	commenced without the express approval of 
224.19 	the legislature.
224.20 	HealthMatch Systems Project. In fiscal 
224.21 	year 2010, $3,054,000 shall be transferred 
224.22 	from the HealthMatch account in the state 
224.23 	systems account in the special revenue fund 
224.24 	to the general fund.
224.25 	Nonfederal Share Transfers. The 
224.26 	nonfederal share of activities for which 
224.27 	federal administrative reimbursement is 
224.28 	appropriated to the commissioner may be 
224.29 	transferred to the special revenue fund.
224.30 	TANF Maintenance of Effort.
224.31 	(a) In order to meet the basic maintenance 
224.32 	of effort (MOE) requirements of the TANF 
224.33 	block grant specified under Code of Federal 
224.34 	Regulations, title 45, section 263.1, the 
224.35 	commissioner may only report nonfederal 
225.1 	money expended for allowable activities 
225.2 	listed in the following clauses as TANF/MOE 
225.3 	expenditures:
225.4 	(1) MFIP cash, diversionary work program, 
225.5 	and food assistance benefits under Minnesota 
225.6 	Statutes, chapter 256J;
225.7 	(2) the child care assistance programs 
225.8 	under Minnesota Statutes, sections 119B.03
225.9 	and 119B.05, and county child care 
225.10 	administrative costs under Minnesota 
225.11 	Statutes, section 119B.15;
225.12 	(3) state and county MFIP administrative 
225.13 	costs under Minnesota Statutes, chapters 
225.14 	256J and 256K;
225.15 	(4) state, county, and tribal MFIP 
225.16 	employment services under Minnesota 
225.17 	Statutes, chapters 256J and 256K;
225.18 	(5) expenditures made on behalf of 
225.19 	noncitizen MFIP recipients who qualify 
225.20 	for the medical assistance without federal 
225.21 	financial participation program under 
225.22 	Minnesota Statutes, section 256B.06, 
225.23 	subdivision 4, paragraphs (d), (e), and (j); 
225.24 	and
225.25 	(6) qualifying working family credit 
225.26 	expenditures under Minnesota Statutes, 
225.27 	section 290.0671.; and
225.28 	(7) qualifying Minnesota education credit 
225.29 	expenditures under Minnesota Statutes, 
225.30 	section 290.0674.
225.31 	(b) The commissioner shall ensure that 
225.32 	sufficient qualified nonfederal expenditures 
225.33 	are made each year to meet the state's 
225.34 	TANF/MOE requirements. For the activities 
226.1 	listed in paragraph (a), clauses (2) to 
226.2 	(6), the commissioner may only report 
226.3 	expenditures that are excluded from the 
226.4 	definition of assistance under Code of 
226.5 	Federal Regulations, title 45, section 260.31.
226.6 	(c) For fiscal years beginning with state 
226.7 	fiscal year 2003, the commissioner shall 
226.8 	ensure that the maintenance of effort used 
226.9 	by the commissioner of finance for the 
226.10 	February and November forecasts required 
226.11 	under Minnesota Statutes, section 16A.103, 
226.12 	contains expenditures under paragraph (a), 
226.13 	clause (1), equal to at least 16 percent of 
226.14 	the total required under Code of Federal 
226.15 	Regulations, title 45, section 263.1.
226.16 	(d) For the federal fiscal years beginning on 
226.17 	or after October 1, 2007, the commissioner 
226.18 	may not claim an amount of TANF/MOE in 
226.19 	excess of the 75 percent standard in Code 
226.20 	of Federal Regulations, title 45, section 
226.21 	263.1(a)(2), except:
226.22 	(1) to the extent necessary to meet the 80 
226.23 	percent standard under Code of Federal 
226.24 	Regulations, title 45, section 263.1(a)(1), 
226.25 	if it is determined by the commissioner 
226.26 	that the state will not meet the TANF work 
226.27 	participation target rate for the current year;
226.28 	(2) to provide any additional amounts 
226.29 	under Code of Federal Regulations, title 45, 
226.30 	section 264.5, that relate to replacement of 
226.31 	TANF funds due to the operation of TANF 
226.32 	penalties; and
226.33 	(3) to provide any additional amounts that 
226.34 	may contribute to avoiding or reducing 
226.35 	TANF work participation penalties through 
227.1 	the operation of the excess MOE provisions 
227.2 	of Code of Federal Regulations, title 45, 
227.3 	section 261.43 (a)(2).
227.4 	For the purposes of clauses (1) to (3), 
227.5 	the commissioner may supplement the 
227.6 	MOE claim with working family credit 
227.7 	expenditures to the extent such expenditures 
227.8 	or other qualified expenditures are otherwise 
227.9 	available after considering the expenditures 
227.10 	allowed in this section.
227.11 	(e) Minnesota Statutes, section 256.011, 
227.12 	subdivision 3, which requires that federal 
227.13 	grants or aids secured or obtained under that 
227.14 	subdivision be used to reduce any direct 
227.15 	appropriations provided by law, do not apply 
227.16 	if the grants or aids are federal TANF funds.
227.17 	(f) Notwithstanding any contrary provision 
227.18 	in this article, this provision expires June 30, 
227.19 	2013.
227.20 	Working Family Credit Expenditures as 
227.21 	TANF/MOE. The commissioner may claim 
227.22 	as TANF/MOE up to $6,707,000 per year of 
227.23 	working family credit expenditures for fiscal 
227.24 	year 2010 through fiscal year 2011.
227.25 	Working Family Credit Expenditures 
227.26 	to be Claimed for TANF/MOE. The 
227.27 	commissioner may count the following 
227.28 	amounts of working family credit expenditure 
227.29 	as TANF/MOE:
227.30 	(1) fiscal year 2010, $50,973,000
227.31 	$50,897,000;
227.32 	(2) fiscal year 2011, $53,793,000
227.33 	$54,243,000;
228.1 	(3) fiscal year 2012, $23,516,000
228.2 	$23,345,000; and
228.3 	(4) fiscal year 2013, $16,808,000
228.4 	$16,585,000.
228.5 	Notwithstanding any contrary provision in 
228.6 	this article, this rider expires June 30, 2013.
228.7 	Food Stamps Employment and Training.
228.8 	(a) The commissioner shall apply for and 
228.9 	claim the maximum allowable federal 
228.10 	matching funds under United States Code, 
228.11 	title 7, section 2025, paragraph (h), for 
228.12 	state expenditures made on behalf of family 
228.13 	stabilization services participants voluntarily 
228.14 	engaged in food stamp employment and 
228.15 	training activities, where appropriate.
228.16 	(b) Notwithstanding Minnesota Statutes, 
228.17 	sections 256D.051, subdivisions 1a, 6b, 
228.18 	and 6c, and 256J.626, federal food stamps 
228.19 	employment and training funds received 
228.20 	as reimbursement of MFIP consolidated 
228.21 	fund grant expenditures for diversionary 
228.22 	work program participants and child 
228.23 	care assistance program expenditures for 
228.24 	two-parent families must be deposited in the 
228.25 	general fund. The amount of funds must be 
228.26 	limited to $3,350,000 in fiscal year 2010 
228.27 	and $4,440,000 in fiscal years 2011 through 
228.28 	2013, contingent on approval by the federal 
228.29 	Food and Nutrition Service. 
228.30 	(c) Consistent with the receipt of these federal 
228.31 	funds, the commissioner may adjust the 
228.32 	level of working family credit expenditures 
228.33 	claimed as TANF maintenance of effort. 
228.34 	Notwithstanding any contrary provision in 
228.35 	this article, this rider expires June 30, 2013.
229.1 	ARRA Food Support Administration.
229.2 	The funds available for food support 
229.3 	administration under the American Recovery 
229.4 	and Reinvestment Act (ARRA) of 2009 
229.5 	are appropriated to the commissioner 
229.6 	to pay actual costs of implementing the 
229.7 	food support benefit increases, increased 
229.8 	eligibility determinations, and outreach. Of 
229.9 	these funds, 20 percent shall be allocated 
229.10 	to the commissioner and 80 percent shall 
229.11 	be allocated to counties. The commissioner 
229.12 	shall allocate the county portion based on 
229.13 	caseload. Reimbursement shall be based on 
229.14 	actual costs reported by counties through 
229.15 	existing processes. Tribal reimbursement 
229.16 	must be made from the state portion based 
229.17 	on a caseload factor equivalent to that of a 
229.18 	county.
229.19 	ARRA Food Support Benefit Increases.
229.20 	The funds provided for food support benefit 
229.21 	increases under the Supplemental Nutrition 
229.22 	Assistance Program provisions of the 
229.23 	American Recovery and Reinvestment Act 
229.24 	(ARRA) of 2009 must be used for benefit 
229.25 	increases beginning July 1, 2009.
229.26 	Emergency Fund for the TANF Program.
229.27 	TANF Emergency Contingency funds 
229.28 	available under the American Recovery 
229.29 	and Reinvestment Act of 2009 (Public Law 
229.30 	111-5) are appropriated to the commissioner. 
229.31 	The commissioner must request TANF 
229.32 	Emergency Contingency funds from the 
229.33 	Secretary of the Department of Health 
229.34 	and Human Services to the extent the 
229.35 	commissioner meets or expects to meet the 
229.36 	requirements of section 403(c) of the Social 
230.1 	Security Act. The commissioner must seek 
230.2 	to maximize such grants. The funds received 
230.3 	must be used as appropriated. Each county 
230.4 	must maintain the county's current level of 
230.5 	emergency assistance funding under the 
230.6 	MFIP consolidated fund and use the funds 
230.7 	under this paragraph to supplement existing 
230.8 	emergency assistance funding levels.

230.9 	Sec. 13. Laws 2009, chapter 79, article 13, section 3, subdivision 3, as amended by 
230.10 	Laws 2009, chapter 173, article 2, section 1, subdivision 3, is amended to read:

230.11
230.12	Subd. 3.Revenue and Pass-Through Revenue 
Expenditures
 		68,337,000
		70,505,000
	
230.13 	This appropriation is from the federal TANF 
230.14 	fund.
230.15 	TANF Transfer to Federal Child Care 
230.16 	and Development Fund. The following 
230.17 	TANF fund amounts are appropriated to the 
230.18 	commissioner for the purposes of MFIP and 
230.19 	transition year child care under Minnesota 
230.20 	Statutes, section 119B.05: 
230.21 	(1) fiscal year 2010, $6,531,000 $862,000;
230.22 	(2) fiscal year 2011, $10,241,000 $978,000;
230.23 	(3) fiscal year 2012, $10,826,000 $0; and
230.24 	(4) fiscal year 2013, $4,046,000 $0.
230.25 	The commissioner shall authorize the 
230.26 	transfer of sufficient TANF funds to the 
230.27 	federal child care and development fund to 
230.28 	meet this appropriation and shall ensure that 
230.29 	all transferred funds are expended according 
230.30 	to federal child care and development fund 
230.31 	regulations.

230.32 	Sec. 14. Laws 2009, chapter 79, article 13, section 3, subdivision 4, as amended by 
230.33 	Laws 2009, chapter 173, article 2, section 1, subdivision 4, is amended to read:

231.1
231.2	Subd. 4.Children and Economic Assistance 
Grants
 					
231.3 	The amounts that may be spent from this 
231.4 	appropriation for each purpose are as follows:

231.5	(a) MFIP/DWP Grants

231.6	Appropriations by Fund
	
231.7	General
	63,205,000
	89,033,000
	
231.8	Federal TANF
	100,818,000
	84,538,000

231.9	(b) Support Services Grants

231.10	Appropriations by Fund
	
231.11	General
	8,715,000
	12,498,000
	
231.12	Federal TANF
	116,557,000
	107,457,000
	
231.13 	MFIP Consolidated Fund. The MFIP 
231.14 	consolidated fund TANF appropriation is 
231.15 	reduced by $1,854,000 in fiscal year 2010 
231.16 	and fiscal year 2011.
231.17 	Notwithstanding Minnesota Statutes, section 
231.18 	256J.626, subdivision 8, paragraph (b), the 
231.19 	commissioner shall reduce proportionately 
231.20 	the reimbursement to counties for 
231.21 	administrative expenses.
231.22 	Subsidized Employment Funding Through 
231.23 	ARRA. The commissioner is authorized to 
231.24 	apply for TANF emergency fund grants for 
231.25 	subsidized employment activities. Growth 
231.26 	in expenditures for subsidized employment 
231.27 	within the supported work program and the 
231.28 	MFIP consolidated fund over the amount 
231.29 	expended in the calendar quarters in the 
231.30 	TANF emergency fund base year shall be 
231.31 	used to leverage the TANF emergency fund 
231.32 	grants for subsidized employment and to 
231.33 	fund supported work. The commissioner 
231.34 	shall develop procedures to maximize 
231.35 	reimbursement of these expenditures over the 
232.1 	TANF emergency fund base year quarters, 
232.2 	and may contract directly with employers 
232.3 	and providers to maximize these TANF 
232.4 	emergency fund grants, including provisions 
232.5 	of TANF summer youth program wage 
232.6 	subsidies for MFIP youth and caregivers. 
232.7 	MFIP youth are individuals up to age 25 who 
232.8 	are part of an eligible household as defined 
232.9 	under rules governing TANF maintenance 
232.10 	of effort with incomes less than 200 percent 
232.11 	of federal poverty guidelines. Expenditures 
232.12 	may only be used for subsidized wages and 
232.13 	benefits and eligible training and supervision 
232.14 	expenditures. The commissioner shall 
232.15 	contract with the Minnesota Department of 
232.16 	Employment and Economic Development 
232.17 	for the summer youth program. The 
232.18 	commissioner shall develop procedures 
232.19 	to maximize reimbursement of these 
232.20 	expenditures over the TANF emergency fund 
232.21 	year quarters. No more than $6,000,000 shall 
232.22 	be reimbursed. This provision is effective 
232.23 	upon enactment.
232.24 	Supported Work. Of the TANF 
232.25 	appropriation, $4,700,000 in fiscal year 2010 
232.26 	and $4,700,000 in fiscal year 2011 are to the 
232.27 	commissioner for supported work for MFIP 
232.28 	recipients and is available until expended. 
232.29 	Supported work includes paid transitional 
232.30 	work experience and a continuum of 
232.31 	employment assistance, including outreach 
232.32 	and recruitment, program orientation 
232.33 	and intake, testing and assessment, job 
232.34 	development and marketing, preworksite 
232.35 	training, supported worksite experience, 
232.36 	job coaching, and postplacement follow-up, 
233.1 	in addition to extensive case management 
233.2 	and referral services. This is a onetime 
233.3 	appropriation.
233.4 	Base Adjustment. The general fund base 
233.5 	is reduced by $3,783,000 in each of fiscal 
233.6 	years 2012 and 2013. The TANF fund base 
233.7 	is increased by $5,004,000 in each of fiscal 
233.8 	years 2012 and 2013.
233.9 	Integrated Services Program Funding.
233.10 	The TANF appropriation for integrated 
233.11 	services program funding is $1,250,000 in 
233.12 	fiscal year 2010 and $0 in fiscal year 2011 
233.13 	and the base for fiscal years 2012 and 2013 
233.14 	is $0.
233.15 	TANF Emergency Fund; Nonrecurrent 
233.16 	Short-Term Benefits.(a) TANF emergency 
233.17 	contingency fund grants received due to 
233.18 	increases in expenditures for nonrecurrent 
233.19 	short-term benefits must be used to offset the 
233.20 	increase in these expenditures for counties 
233.21 	under the MFIP consolidated fund, under 
233.22 	Minnesota Statutes, section 256J.626, 
233.23 	and the diversionary work program. The 
233.24 	commissioner shall develop procedures 
233.25 	to maximize reimbursement of these 
233.26 	expenditures over the TANF emergency fund 
233.27 	base year quarters. Growth in expenditures 
233.28 	for the diversionary work program over the 
233.29 	amount expended in the calendar quarters in 
233.30 	the TANF emergency fund base year shall be 
233.31 	used to leverage these funds.
233.32 	(b) To the extent that the commissioner 
233.33 	can claim eligible tax credit growth as 
233.34 	nonrecurrent short-term benefits, the 
233.35 	commissioner shall use those funds to 
234.1 	leverage the increased expenditures in 
234.2 	paragraph (a).
234.3 	(c) TANF emergency funds for nonrecurrent 
234.4 	short-term benefits received in excess of the 
234.5 	amounts necessary for paragraphs (a) and (b) 
234.6 	shall be used to reimburse the general fund 
234.7 	for the costs of eligible tax credits in fiscal 
234.8 	year 2011. The amount of such funds shall 
234.9 	not exceed $15,500,000 in fiscal year 2010. 
234.10 	(d) This rider is effective the day following 
234.11 	final enactment.

234.12	(c) MFIP Child Care Assistance Grants
		61,171,000
		65,214,000
	
234.13 	Acceleration of ARRA Child Care and 
234.14 	Development Fund Expenditure. The 
234.15 	commissioner must liquidate all child care 
234.16 	and development money available under 
234.17 	the American Recovery and Reinvestment 
234.18 	Act (ARRA) of 2009, Public Law 111-5, 
234.19 	by September 30, 2010. In order to expend 
234.20 	those funds by September 30, 2010, the 
234.21 	commissioner may redesignate and expend 
234.22 	the ARRA child care and development funds 
234.23 	appropriated in fiscal year 2011 for purposes 
234.24 	under this section for related purposes that 
234.25 	will allow liquidation by September 30, 
234.26 	2010. Child care and development funds 
234.27 	otherwise available to the commissioner 
234.28 	for those related purposes shall be used to 
234.29 	fund the purposes from which the ARRA 
234.30 	child care and development funds had been 
234.31 	redesignated.
234.32 	School Readiness Service Agreements.
234.33 	$400,000 in fiscal year 2010 and $400,000 
234.34 	in fiscal year 2011 are from the federal 
234.35 	TANF fund to the commissioner of human 
235.1 	services consistent with federal regulations 
235.2 	for the purpose of school readiness service 
235.3 	agreements under Minnesota Statutes, 
235.4 	section 119B.231. This is a onetime 
235.5 	appropriation. Any unexpended balance the 
235.6 	first year is available in the second year.

235.7
235.8	(d) Basic Sliding Fee Child Care Assistance 
Grants
		40,100,000
		45,092,000
	
235.9 	School Readiness Service Agreements.
235.10 	$257,000 in fiscal year 2010 and $257,000 
235.11 	in fiscal year 2011 are from the general 
235.12 	fund for the purpose of school readiness 
235.13 	service agreements under Minnesota 
235.14 	Statutes, section 119B.231. This is a onetime 
235.15 	appropriation. Any unexpended balance the 
235.16 	first year is available in the second year.
235.17 	Child Care Development Fund 
235.18 	Unexpended Balance. In addition to 
235.19 	the amount provided in this section, the 
235.20 	commissioner shall expend $5,244,000 in 
235.21 	fiscal year 2010 from the federal child care 
235.22 	development fund unexpended balance 
235.23 	for basic sliding fee child care under 
235.24 	Minnesota Statutes, section 119B.03. The 
235.25 	commissioner shall ensure that all child 
235.26 	care and development funds are expended 
235.27 	according to the federal child care and 
235.28 	development fund regulations.
235.29 	Basic Sliding Fee. $4,000,000 in fiscal year 
235.30 	2010 and $4,000,000 in fiscal year 2011 are 
235.31 	from the federal child care development 
235.32 	funds received from the American Recovery 
235.33 	and Reinvestment Act of 2009, Public 
235.34 	Law 111-5, to the commissioner of human 
235.35 	services consistent with federal regulations 
235.36 	for the purpose of basic sliding fee child care 
236.1 	assistance under Minnesota Statutes, section 
236.2 	119B.03. This is a onetime appropriation. 
236.3 	Any unexpended balance the first year is 
236.4 	available in the second year.
236.5 	Basic Sliding Fee Allocation for Calendar 
236.6 	Year 2010. Notwithstanding Minnesota 
236.7 	Statutes, section 119B.03, subdivision 6, 
236.8 	in calendar year 2010, basic sliding fee 
236.9 	funds shall be distributed according to 
236.10 	this provision. Funds shall be allocated 
236.11 	first in amounts equal to each county's 
236.12 	guaranteed floor, according to Minnesota 
236.13 	Statutes, section 119B.03, subdivision 8, 
236.14 	with any remaining available funds allocated 
236.15 	according to the following formula:
236.16 	(a) Up to one-fourth of the funds shall be 
236.17 	allocated in proportion to the number of 
236.18 	families participating in the transition year 
236.19 	child care program as reported during and 
236.20 	averaged over the most recent six months 
236.21 	completed at the time of the notice of 
236.22 	allocation. Funds in excess of the amount 
236.23 	necessary to serve all families in this category 
236.24 	shall be allocated according to paragraph (d).
236.25 	(b) Up to three-fourths of the funds shall 
236.26 	be allocated in proportion to the average 
236.27 	of each county's most recent six months of 
236.28 	reported waiting list as defined in Minnesota 
236.29 	Statutes, section 119B.03, subdivision 2, and 
236.30 	the reinstatement list of those families whose 
236.31 	assistance was terminated with the approval 
236.32 	of the commissioner under Minnesota Rules, 
236.33 	part 3400.0183, subpart 1. Funds in excess 
236.34 	of the amount necessary to serve all families 
237.1 	in this category shall be allocated according 
237.2 	to paragraph (d).
237.3 	(c) The amount necessary to serve all families 
237.4 	in paragraphs (a) and (b) shall be calculated 
237.5 	based on the basic sliding fee average cost of 
237.6 	care per family in the county with the highest 
237.7 	cost in the most recently completed calendar 
237.8 	year.
237.9 	(d) Funds in excess of the amount necessary 
237.10 	to serve all families in paragraphs (a) and 
237.11 	(b) shall be allocated in proportion to each 
237.12 	county's total expenditures for the basic 
237.13 	sliding fee child care program reported 
237.14 	during the most recent fiscal year completed 
237.15 	at the time of the notice of allocation. To 
237.16 	the extent that funds are available, and 
237.17 	notwithstanding Minnesota Statutes, section 
237.18 	119B.03, subdivision 8, for the period 
237.19 	January 1, 2011, to December 31, 2011, each 
237.20 	county's guaranteed floor must be equal to its 
237.21 	original calendar year 2010 allocation.
237.22 	Base Adjustment. The general fund base is 
237.23 	decreased by $257,000 in each of fiscal years 
237.24 	2012 and 2013.

237.25	(e) Child Care Development Grants
		1,487,000
		1,487,000
	
237.26 	Family, friends, and neighbor grants.
237.27 	$375,000 in fiscal year 2010 and $375,000 
237.28 	in fiscal year 2011 are from the child 
237.29 	care development fund required targeted 
237.30 	quality funds for quality expansion and 
237.31 	infant/toddler from the American Recovery 
237.32 	and Reinvestment Act of 2009, Public 
237.33 	Law 111-5, to the commissioner of human 
237.34 	services for family, friends, and neighbor 
237.35 	grants under Minnesota Statutes, section 
238.1 	119B.232. This appropriation may be used 
238.2 	on programs receiving family, friends, and 
238.3 	neighbor grant funds as of June 30, 2009, 
238.4 	or on new programs or projects. This is a 
238.5 	onetime appropriation. Any unexpended 
238.6 	balance the first year is available in the 
238.7 	second year.
238.8 	Voluntary quality rating system training, 
238.9 	coaching, consultation, and supports.
238.10 	$633,000 in fiscal year 2010 and $633,000 
238.11 	in fiscal year 2011 are from the federal child 
238.12 	care development fund required targeted 
238.13 	quality funds for quality expansion and 
238.14 	infant/toddler from the American Recovery 
238.15 	and Reinvestment Act of 2009, Public 
238.16 	Law 111-5, to the commissioner of human 
238.17 	services consistent with federal regulations 
238.18 	for the purpose of providing grants to provide 
238.19 	statewide child-care provider training, 
238.20 	coaching, consultation, and supports to 
238.21 	prepare for the voluntary Minnesota quality 
238.22 	rating system rating tool. This is a onetime 
238.23 	appropriation. Any unexpended balance the 
238.24 	first year is available in the second year.
238.25 	Voluntary quality rating system. $184,000 
238.26 	in fiscal year 2010 and $1,200,000 in fiscal 
238.27 	year 2011 are from the federal child care 
238.28 	development fund required targeted funds for 
238.29 	quality expansion and infant/toddler from the 
238.30 	American Recovery and Reinvestment Act of 
238.31 	2009, Public Law 111-5, to the commissioner 
238.32 	of human services consistent with federal 
238.33 	regulations for the purpose of implementing 
238.34 	the voluntary Parent Aware quality star 
238.35 	rating system pilot in coordination with the 
238.36 	Minnesota Early Learning Foundation. The 
239.1 	appropriation for the first year is to complete 
239.2 	and promote the voluntary Parent Aware 
239.3 	quality rating system pilot program through 
239.4 	June 30, 2010, and the appropriation for 
239.5 	the second year is to continue the voluntary 
239.6 	Minnesota quality rating system pilot 
239.7 	through June 30, 2011. This is a onetime 
239.8 	appropriation. Any unexpended balance the 
239.9 	first year is available in the second year.

239.10	(f) Child Support Enforcement Grants
		3,705,000
		3,705,000

239.11	(g) Children's Services Grants

239.12	Appropriations by Fund
	
239.13	General
	48,333,000
	50,498,000
	
239.14	Federal TANF
	340,000
	240,000
	
239.15 	Base Adjustment. The general fund base is 
239.16 	decreased by $5,371,000 in fiscal year 2012 
239.17 	and decreased $5,371,000 in fiscal year 2013.
239.18 	Privatized Adoption Grants. Federal 
239.19 	reimbursement for privatized adoption grant 
239.20 	and foster care recruitment grant expenditures 
239.21 	is appropriated to the commissioner for 
239.22 	adoption grants and foster care and adoption 
239.23 	administrative purposes.
239.24 	Adoption Assistance Incentive Grants.
239.25 	Federal funds available during fiscal year 
239.26 	2010 and fiscal year 2011 for the adoption 
239.27 	incentive grants are appropriated to the 
239.28 	commissioner for postadoption services 
239.29 	including parent support groups.
239.30 	Adoption Assistance and Relative Custody 
239.31 	Assistance. The commissioner may transfer 
239.32 	unencumbered appropriation balances for 
239.33 	adoption assistance and relative custody 
239.34 	assistance between fiscal years and between 
239.35 	programs.

240.1	(h) Children and Community Services Grants
		67,663,000
		67,542,000
	
240.2 	Targeted Case Management Temporary 
240.3 	Funding Adjustment. The commissioner 
240.4 	shall recover from each county and tribe 
240.5 	receiving a targeted case management 
240.6 	temporary funding payment in fiscal year 
240.7 	2008 an amount equal to that payment. The 
240.8 	commissioner shall recover one-half of the 
240.9 	funds by February 1, 2010, and the remainder 
240.10 	by February 1, 2011. At the commissioner's 
240.11 	discretion and at the request of a county 
240.12 	or tribe, the commissioner may revise 
240.13 	the payment schedule, but full payment 
240.14 	must not be delayed beyond May 1, 2011. 
240.15 	The commissioner may use the recovery 
240.16 	procedure under Minnesota Statutes, section 
240.17 	256.017, to recover the funds. Recovered 
240.18 	funds must be deposited into the general 
240.19 	fund.

240.20	(i) General Assistance Grants
		48,215,000
		48,608,000
	
240.21 	General Assistance Standard. The 
240.22 	commissioner shall set the monthly standard 
240.23 	of assistance for general assistance units 
240.24 	consisting of an adult recipient who is 
240.25 	childless and unmarried or living apart 
240.26 	from parents or a legal guardian at $203. 
240.27 	The commissioner may reduce this amount 
240.28 	according to Laws 1997, chapter 85, article 
240.29 	3, section 54.
240.30 	Emergency General Assistance. The 
240.31 	amount appropriated for emergency general 
240.32 	assistance funds is limited to no more 
240.33 	than $7,889,812 in fiscal year 2010 and 
240.34 	$7,889,812 in fiscal year 2011. Funds 
240.35 	to counties must be allocated by the 
241.1 	commissioner using the allocation method 
241.2 	specified in Minnesota Statutes, section 
241.3 	256D.06.

241.4	(j) Minnesota Supplemental Aid Grants
		33,930,000
		35,191,000
	
241.5 	Emergency Minnesota Supplemental 
241.6 	Aid Funds. The amount appropriated for 
241.7 	emergency Minnesota supplemental aid 
241.8 	funds is limited to no more than $1,100,000 
241.9 	in fiscal year 2010 and $1,100,000 in fiscal 
241.10 	year 2011. Funds to counties must be 
241.11 	allocated by the commissioner using the 
241.12 	allocation method specified in Minnesota 
241.13 	Statutes, section 256D.46.

241.14	(k) Group Residential Housing Grants
		111,778,000
		114,034,000
	
241.15 	Group Residential Housing Costs 
241.16 	Refinanced. (a) Effective July 1, 2011, the 
241.17 	commissioner shall increase the home and 
241.18 	community-based service rates and county 
241.19 	allocations provided to programs for persons 
241.20 	with disabilities established under section 
241.21 	1915(c) of the Social Security Act to the 
241.22 	extent that these programs will be paying 
241.23 	for the costs above the rate established 
241.24 	in Minnesota Statutes, section 256I.05, 
241.25 	subdivision 1.
241.26 	(b) For persons receiving services under 
241.27 	Minnesota Statutes, section 245A.02, who 
241.28 	reside in licensed adult foster care beds 
241.29 	for which a difficulty of care payment 
241.30 	was being made under Minnesota Statutes, 
241.31 	section 256I.05, subdivision 1c, paragraph 
241.32 	(b), counties may request an exception to 
241.33 	the individual's service authorization not to 
241.34 	exceed the difference between the client's 
242.1 	monthly service expenditures plus the 
242.2 	amount of the difficulty of care payment.

242.3	(l) Children's Mental Health Grants
		16,885,000
		16,882,000
	
242.4 	Funding Usage. Up to 75 percent of a fiscal 
242.5 	year's appropriation for children's mental 
242.6 	health grants may be used to fund allocations 
242.7 	in that portion of the fiscal year ending 
242.8 	December 31.

242.9242.10
	(m) Other Children and Economic Assistance 
Grants
		16,047,000
		15,339,000
	
242.11 	Fraud Prevention Grants. Of this 
242.12 	appropriation, $228,000 in fiscal year 2010 
242.13 	and $228,000 $379,000 in fiscal year 2011 
242.14 	is to the commissioner for fraud prevention 
242.15 	grants to counties.
242.16 	Homeless and Runaway Youth. $218,000 
242.17 	in fiscal year 2010 is for the Runaway 
242.18 	and Homeless Youth Act under Minnesota 
242.19 	Statutes, section 256K.45. Funds shall be 
242.20 	spent in each area of the continuum of care 
242.21 	to ensure that programs are meeting the 
242.22 	greatest need. Any unexpended balance in 
242.23 	the first year is available in the second year. 
242.24 	Beginning July 1, 2011, the base is increased 
242.25 	by $119,000 each year.
242.26 	ARRA Homeless Youth Funds. To the 
242.27 	extent permitted under federal law, the 
242.28 	commissioner shall designate $2,500,000 
242.29 	of the Homeless Prevention and Rapid 
242.30 	Re-Housing Program funds provided under 
242.31 	the American Recovery and Reinvestment 
242.32 	Act of 2009, Public Law 111-5, for agencies 
242.33 	providing homelessness prevention and rapid 
242.34 	rehousing services to youth.
243.1 	Supportive Housing Services. $1,500,000 
243.2 	each year is for supportive services under 
243.3 	Minnesota Statutes, section 256K.26. This is 
243.4 	a onetime appropriation. 
243.5 	Community Action Grants. Community 
243.6 	action grants are reduced one time by 
243.7 	$1,794,000 each year. This reduction is due 
243.8 	to the availability of federal funds under the 
243.9 	American Recovery and Reinvestment Act.
243.10 	Base Adjustment. The general fund base 
243.11 	is increased by $773,000 $903,000 in fiscal 
243.12 	year 2012 and $773,000 $413,000 in fiscal 
243.13 	year 2013.
243.14 	Federal ARRA Funds for Existing 
243.15 	Programs. (a) Federal funds received by the 
243.16 	commissioner for the emergency food and 
243.17 	shelter program from the American Recovery 
243.18 	and Reinvestment Act of 2009, Public 
243.19 	Law 111-5, but not previously approved 
243.20 	by the legislature are appropriated to the 
243.21 	commissioner for the purposes of the grant 
243.22 	program.
243.23 	(b) Federal funds received by the 
243.24 	commissioner for the emergency shelter 
243.25 	grant program including the Homelessness 
243.26 	Prevention and Rapid Re-Housing 
243.27 	Program from the American Recovery and 
243.28 	Reinvestment Act of 2009, Public Law 
243.29 	111-5, are appropriated to the commissioner 
243.30 	for the purposes of the grant programs.
243.31 	(c) Federal funds received by the 
243.32 	commissioner for the emergency food 
243.33 	assistance program from the American 
243.34 	Recovery and Reinvestment Act of 2009, 
243.35 	Public Law 111-5, are appropriated to the 
244.1 	commissioner for the purposes of the grant 
244.2 	program.
244.3 	(d) Federal funds received by the 
244.4 	commissioner for senior congregate meals 
244.5 	and senior home-delivered meals from the 
244.6 	American Recovery and Reinvestment Act 
244.7 	of 2009, Public Law 111-5, are appropriated 
244.8 	to the commissioner for the Minnesota Board 
244.9 	on Aging, for purposes of the grant programs.
244.10 	(e) Federal funds received by the 
244.11 	commissioner for the community services 
244.12 	block grant program from the American 
244.13 	Recovery and Reinvestment Act of 2009, 
244.14 	Public Law 111-5, are appropriated to the 
244.15 	commissioner for the purposes of the grant 
244.16 	program.
244.17 	Long-Term Homeless Supportive 
244.18 	Service Fund Appropriation. To the 
244.19 	extent permitted under federal law, the 
244.20 	commissioner shall designate $3,000,000 
244.21 	of the Homelessness Prevention and Rapid 
244.22 	Re-Housing Program funds provided under 
244.23 	the American Recovery and Reinvestment 
244.24 	Act of 2009, Public Law, 111-5, to the 
244.25 	long-term homeless service fund under 
244.26 	Minnesota Statutes, section 256K.26. This 
244.27 	appropriation shall become available by July 
244.28 	1, 2009. This paragraph is effective the day 
244.29 	following final enactment.

244.30 	Sec. 15. Laws 2009, chapter 79, article 13, section 3, subdivision 8, as amended by 
244.31 	Laws 2009, chapter 173, article 2, section 1, subdivision 8, is amended to read:

244.32	Subd. 8.Continuing Care Grants
 					
244.33 	The amounts that may be spent from the 
244.34 	appropriation for each purpose are as follows:

245.1	(a) Aging and Adult Services Grants
		13,499,000
		15,805,000
	
245.2 	Base Adjustment. The general fund base is 
245.3 	increased by $5,751,000 in fiscal year 2012 
245.4 	and $6,705,000 in fiscal year 2013.
245.5 	Information and Assistance 
245.6 	Reimbursement. Federal administrative 
245.7 	reimbursement obtained from information 
245.8 	and assistance services provided by the 
245.9 	Senior LinkAge or Disability Linkage lines 
245.10 	to people who are identified as eligible for 
245.11 	medical assistance shall be appropriated to 
245.12 	the commissioner for this activity.
245.13 	Community Service Development Grant 
245.14 	Reduction. Funding for community service 
245.15 	development grants must be reduced by 
245.16 	$260,000 for fiscal year 2010; $284,000 in 
245.17 	fiscal year 2011; $43,000 in fiscal year 2012; 
245.18 	and $43,000 in fiscal year 2013. Base level 
245.19 	funding shall be restored in fiscal year 2014.
245.20 	Community Service Development Grant 
245.21 	Community Initiative. Funding for 
245.22 	community service development grants shall 
245.23 	be used to offset the cost of aging support 
245.24 	grants. Base level funding shall be restored 
245.25 	in fiscal year 2014.
245.26 	Senior Nutrition Use of Federal Funds.
245.27 	For fiscal year 2010, general fund grants 
245.28 	for home-delivered meals and congregate 
245.29 	dining shall be reduced by $500,000. The 
245.30 	commissioner must replace these general 
245.31 	fund reductions with equal amounts from 
245.32 	federal funding for senior nutrition from the 
245.33 	American Recovery and Reinvestment Act 
245.34 	of 2009.

246.1	(b) Alternative Care Grants
		50,234,000
		48,576,000
	
246.2 	Base Adjustment. The general fund base is 
246.3 	decreased by $3,598,000 in fiscal year 2012 
246.4 	and $3,470,000 in fiscal year 2013.
246.5 	Alternative Care Transfer. Any money 
246.6 	allocated to the alternative care program that 
246.7 	is not spent for the purposes indicated does 
246.8 	not cancel but must be transferred to the 
246.9 	medical assistance account.

246.10
246.11	(c) Medical Assistance Grants; Long-Term 
Care Facilities.
		367,444,000
		419,749,000

246.12
246.13	(d) Medical Assistance Long-Term Care 
Waivers and Home Care Grants
		853,567,000
		1,039,517,000
	
246.14 	Manage Growth in TBI and CADI 
246.15 	Waivers. During the fiscal years beginning 
246.16 	on July 1, 2009, and July 1, 2010, the 
246.17 	commissioner shall allocate money for home 
246.18 	and community-based waiver programs 
246.19 	under Minnesota Statutes, section 256B.49, 
246.20 	to ensure a reduction in state spending that is 
246.21 	equivalent to limiting the caseload growth of 
246.22 	the TBI waiver to 12.5 allocations per month 
246.23 	each year of the biennium and the CADI 
246.24 	waiver to 95 allocations per month each year 
246.25 	of the biennium. Limits do not apply: (1) 
246.26 	when there is an approved plan for nursing 
246.27 	facility bed closures for individuals under 
246.28 	age 65 who require relocation due to the 
246.29 	bed closure; (2) to fiscal year 2009 waiver 
246.30 	allocations delayed due to unallotment; or (3) 
246.31 	to transfers authorized by the commissioner 
246.32 	from the personal care assistance program 
246.33 	of individuals having a home care rating 
246.34 	of "CS," "MT," or "HL." Priorities for the 
246.35 	allocation of funds must be for individuals 
247.1 	anticipated to be discharged from institutional 
247.2 	settings or who are at imminent risk of a 
247.3 	placement in an institutional setting.
247.4 	Manage Growth in DD Waiver. The 
247.5 	commissioner shall manage the growth in 
247.6 	the DD waiver by limiting the allocations 
247.7 	included in the February 2009 forecast to 15 
247.8 	additional diversion allocations each month 
247.9 	for the calendar years that begin on January 
247.10 	1, 2010, and January 1, 2011. Additional 
247.11 	allocations must be made available for 
247.12 	transfers authorized by the commissioner 
247.13 	from the personal care program of individuals 
247.14 	having a home care rating of "CS," "MT," 
247.15 	or "HL."
247.16 	Adjustment to Lead Agency Waiver 
247.17 	Allocations. Prior to the availability of the 
247.18 	alternative license defined in Minnesota 
247.19 	Statutes, section 245A.11, subdivision 8, 
247.20 	the commissioner shall reduce lead agency 
247.21 	waiver allocations for the purposes of 
247.22 	implementing a moratorium on corporate 
247.23 	foster care.
247.24 	Alternatives to Personal Care Assistance 
247.25 	Services. Base level funding of $3,237,000 
247.26 	in fiscal year 2012 and $4,856,000 in 
247.27 	fiscal year 2013 is to implement alternative 
247.28 	services to personal care assistance services 
247.29 	for persons with mental health and other 
247.30 	behavioral challenges who can benefit 
247.31 	from other services that more appropriately 
247.32 	meet their needs and assist them in living 
247.33 	independently in the community. These 
247.34 	services may include, but not be limited to, a 
247.35 	1915(i) state plan option.

248.1	(e) Mental Health Grants

248.2	Appropriations by Fund
	
248.3	General
	77,739,000
	77,739,000
	
248.4	Health Care Access
	750,000
	750,000
	
248.5	Lottery Prize
	1,508,000
	1,508,000
	
248.6 	Funding Usage. Up to 75 percent of a fiscal 
248.7 	year's appropriation for adult mental health 
248.8 	grants may be used to fund allocations in that 
248.9 	portion of the fiscal year ending December 
248.10 	31.

248.11	(f) Deaf and Hard-of-Hearing Grants
		1,930,000
		1,917,000

248.12	(g) Chemical Dependency Entitlement Grants
		111,303,000
		122,822,000
	
248.13 	Payments for Substance Abuse Treatment.
248.14 	For services providedplacements beginning 
248.15 	during fiscal years 2010 and 2011, 
248.16 	county-negotiated rates and provider claims 
248.17 	to the consolidated chemical dependency 
248.18 	fund must not exceed the lesser of:
248.19 	(1)  rates charged for these services on 
248.20 	January 1, 2009; or
248.21 	(2) 160 percent of the average rate on January 
248.22 	1, 2009, for each group of vendors with 
248.23 	similar attributes.
248.24 	Effective July 1, 2010, rates that were above 
248.25 	the average rate on January 1, 2009, are 
248.26 	reduced by five percent from the rates in 
248.27 	effect on June 1, 2010. Rates below the 
248.28 	average rate on January 1, 2009, are reduced 
248.29 	by 1.8 percent from the rates in effect on June 
248.30 	1, 2010. Services provided under this section 
248.31 	by state-operated services are exempt from 
248.32 	the rate reduction. For services provided in 
248.33 	fiscal years 2012 and 2013, statewide average 
248.34 	rates the statewide aggregate payment  under 
249.1 	the new rate methodology to be developed 
249.2 	under Minnesota Statutes, section 254B.12, 
249.3 	must not exceed the average rates charged 
249.4 	for these services on January 1, 2009
249.5 	projected aggregate payment under the rates 
249.6 	in effect for fiscal year 2011 excluding the 
249.7 	rate reduction for rates that were below 
249.8 	the average on January 1, 2009, plus a 
249.9 	state share increase of $3,787,000 for fiscal 
249.10 	year 2012 and $5,023,000 for fiscal year 
249.11 	2013. Notwithstanding any provision to the 
249.12 	contrary in this article, this provision expires 
249.13 	on June 30, 2013.
249.14 	Chemical Dependency Special Revenue 
249.15 	Account. For fiscal year 2010, $750,000 
249.16 	must be transferred from the consolidated 
249.17 	chemical dependency treatment fund 
249.18 	administrative account and deposited into the 
249.19 	general fund.
249.20 	County CD Share of MA Costs for 
249.21 	ARRA Compliance. Notwithstanding the 
249.22 	provisions of Minnesota Statutes, chapter 
249.23 	254B, for chemical dependency services 
249.24 	provided during the period October 1, 2008, 
249.25 	to December 31, 2010, and reimbursed by 
249.26 	medical assistance at the enhanced federal 
249.27 	matching rate provided under the American 
249.28 	Recovery and Reinvestment Act of 2009, the 
249.29 	county share is 30 percent of the nonfederal 
249.30 	share. This provision is effective the day 
249.31 	following final enactment.

249.32
249.33	(h) Chemical Dependency Nonentitlement 
Grants
		1,729,000
		1,729,000

249.34	(i) Other Continuing Care Grants
		19,201,000
		17,528,000
	
250.1 	Base Adjustment. The general fund base is 
250.2 	increased by $2,639,000 in fiscal year 2012 
250.3 	and increased by $3,854,000 in fiscal year 
250.4 	2013.
250.5 	Technology Grants. $650,000 in fiscal 
250.6 	year 2010 and $1,000,000 in fiscal year 
250.7 	2011 are for technology grants, case 
250.8 	consultation, evaluation, and consumer 
250.9 	information grants related to developing and 
250.10 	supporting alternatives to shift-staff foster 
250.11 	care residential service models.
250.12 	Other Continuing Care Grants; HIV 
250.13 	Grants. Money appropriated for the HIV 
250.14 	drug and insurance grant program in fiscal 
250.15 	year 2010 may be used in either year of the 
250.16 	biennium.
250.17 	Quality Assurance Commission. Effective 
250.18 	July 1, 2009, state funding for the quality 
250.19 	assurance commission under Minnesota 
250.20 	Statutes, section 256B.0951, is canceled.

250.21 	Sec. 16. Laws 2009, chapter 79, article 13, section 5, subdivision 8, as amended by 
250.22 	Laws 2009, chapter 173, article 2, section 3, subdivision 8, is amended to read:

250.23
250.24	Subd. 8.Board of Nursing Home 
Administrators
 		1,211,000
		1,023,000
	
250.25 	Administrative Services Unit - Operating 
250.26 	Costs. Of this appropriation, $524,000 
250.27 	in fiscal year 2010 and $526,000 in 
250.28 	fiscal year 2011 are for operating costs 
250.29 	of the administrative services unit. The 
250.30 	administrative services unit may receive 
250.31 	and expend reimbursements for services 
250.32 	performed by other agencies.
250.33 	Administrative Services Unit - Retirement 
250.34 	Costs. Of this appropriation in fiscal year 
251.1 	2010, $201,000 is for onetime retirement 
251.2 	costs in the health-related boards. This 
251.3 	funding may be transferred to the health 
251.4 	boards incurring those costs for their 
251.5 	payment. These funds are available either 
251.6 	year of the biennium.
251.7 	Administrative Services Unit - Volunteer 
251.8 	Health Care Provider Program. Of this 
251.9 	appropriation, $79,000 $130,000  in fiscal 
251.10 	year 2010 and $89,000 $150,000  in fiscal 
251.11 	year 2011 are to pay for medical professional 
251.12 	liability coverage required under Minnesota 
251.13 	Statutes, section 214.40.
251.14 	Administrative Services Unit - Contested 
251.15 	Cases and Other Legal Proceedings. Of 
251.16 	this appropriation, $200,000 in fiscal year 
251.17 	2010 and $200,000 in fiscal year 2011 are 
251.18 	for costs of contested case hearings and other 
251.19 	unanticipated costs of legal proceedings 
251.20 	involving health-related boards funded 
251.21 	under this section and for unforeseen 
251.22 	expenditures of an urgent nature. Upon 
251.23 	certification of a health-related board to the 
251.24 	administrative services unit that the costs 
251.25 	will be incurred and that there is insufficient 
251.26 	money available to pay for the costs out of 
251.27 	money currently available to that board, the 
251.28 	administrative services unit is authorized 
251.29 	to transfer money from this appropriation 
251.30 	to the board for payment of those costs 
251.31 	with the approval of the commissioner of 
251.32 	finance. This appropriation does not cancel. 
251.33 	Any unencumbered and unspent balances 
251.34 	remain available for these expenditures in 
251.35 	subsequent fiscal years. The boards receiving 
251.36 	funds under this section shall include these 
252.1 	amounts when setting fees to cover their 
252.2 	costs.

252.3 	Sec. 17. EXPIRATION OF UNCODIFIED LANGUAGE.
 252.4 	All uncodified language contained in this article expires on June 30, 2011, unless a 
252.5 	different expiration date is explicit.

252.6 	Sec. 18. EFFECTIVE DATE.
 252.7 	The provisions in this article are effective July 1, 2010, unless a different effective 
252.8 	date is explicit.