1.1 	A bill for an act
1.2 	relating to government finance; appropriating and transferring money and 
1.3 	supplementing or reducing appropriations for the Departments of Health, Human 
1.4 	Services, Veterans Affairs, Corrections, and Commerce, health-related boards, 
1.5 	the Emergency Medical Services Board, and the University of Minnesota; 
1.6 	establishing, regulating, or modifying health care services programs, continuing 
1.7 	care services, children and family services, and Department of Health provisions; 
1.8 	amending Minnesota Statutes 2008, sections 62D.08, by adding a subdivision; 
1.9 	62J.692, subdivision 4; 144.226, subdivision 3; 144D.03, subdivision 2, by 
1.10 	adding a subdivision; 144D.04, subdivision 2; 144E.37; 144G.06; 152.126, as 
1.11 	amended; 214.40, subdivision 7; 245C.27, subdivision 2; 245C.28, subdivision 3; 
1.12 	246.18, by adding a subdivision; 254B.01, subdivision 2; 254B.02, subdivisions 
1.13 	1, 5; 254B.03, subdivision 4, by adding a subdivision; 254B.05, subdivision 
1.14 	4; 254B.06, subdivision 2; 254B.09, subdivision 8; 256.9657, subdivisions 
1.15 	1, 2, 3, 3a; 256.969, subdivisions 21, 26, by adding a subdivision; 256B.04, 
1.16 	subdivision 14a; 256B.055, by adding a subdivision; 256B.056, subdivisions 3, 
1.17 	4; 256B.0625, subdivision 22, by adding a subdivision; 256B.0631, subdivisions 
1.18 	1, 3; 256B.0644, as amended; 256B.0753, by adding a subdivision; 256B.0915, 
1.19 	by adding a subdivision; 256B.441, subdivision 53; 256B.49, by adding a 
1.20 	subdivision; 256B.5012, by adding a subdivision; 256B.69, subdivision 27, 
1.21 	by adding a subdivision; 256B.692, subdivision 1; 256B.76, subdivisions 2, 
1.22 	4; 256D.0515; 256J.24, subdivision 6; 256L.12, subdivisions 5, 9, by adding 
1.23 	a subdivision; 517.08, subdivision 1c, as amended; 626.556, subdivision 
1.24 	10i; 626.557, subdivision 9d; Minnesota Statutes 2009 Supplement, sections 
1.25 	150A.06, subdivision 1d; 150A.106, subdivision 1; 157.16, subdivision 3; 
1.26 	245C.27, subdivision 1; 256.045, subdivision 3; 256.969, subdivisions 2b, 3a; 
1.27 	256.975, subdivision 7; 256B.0625, subdivision 13h; 256B.0659, subdivision 11; 
1.28 	256B.0911, subdivision 3c; 256B.441, subdivision 55; 256B.69, subdivisions 
1.29 	5a, 23; 256B.76, subdivision 1; 256B.766; 256D.03, subdivision 3, as amended; 
1.30 	256J.425, subdivision 3; 256L.03, subdivision 5; 327.15, subdivision 3; 517.08, 
1.31 	subdivision 1b; Laws 2009, chapter 79, article 3, section 18; article 5, sections 
1.32 	75, subdivision 1; 78, subdivision 5; article 13, sections 3, subdivisions 1, as 
1.33 	amended, 4, as amended, 6, 8, as amended; 5, subdivision 8, as amended; Laws 
1.34 	2010, chapter 200, article 1, sections 12, subdivision 7; 16; 21; article 2, section 
1.35 	2, subdivisions 1, 5, 8; proposing coding for new law in Minnesota Statutes, 
1.36 	chapters 62D; 62Q; 137; 144D; 256B; repealing Minnesota Statutes 2008, 
1.37 	sections 254B.02, subdivisions 2, 3, 4; 254B.09, subdivisions 4, 5, 7; 256D.03, 
1.38 	subdivisions 3, 3a, 5, 6, 7, 8; Laws 2010, chapter 200, article 1, sections 12; 
1.39 	18; 19.
2.1 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.2 	ARTICLE 1
2.3 	HEALTH CARE

2.4 	Section 1. Minnesota Statutes 2008, section 256.9657, subdivision 2, is amended to 
2.5 	read:
2.6 		Subd. 2.Hospital surcharge. (a) Effective October 1, 1992, each Minnesota 
2.7 	hospital except facilities of the federal Indian Health Service and regional treatment 
2.8 	centers shall pay to the medical assistance account a surcharge equal to 1.4 percent of net 
2.9 	patient revenues excluding net Medicare revenues reported by that provider to the health 
2.10 	care cost information system according to the schedule in subdivision 4.
2.11 	(b) Effective July 1, 1994, the surcharge under paragraph (a) is increased to 1.56
2.12 	percent. 
2.13 	(c) Effective July 1, 2010, the surcharge under paragraph (b) is increased to 2.63 
2.14 	percent. 
2.15 	(d) Effective October 1, 2011, the surcharge under paragraph (c) is reduced to 
2.16 	2.30 percent.
2.17 	(e) Notwithstanding the Medicare cost finding and allowable cost principles, the 
2.18 	hospital surcharge is not an allowable cost for purposes of rate setting under sections 
2.19 	256.9685 to 256.9695. 

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

2.21 	Sec. 2. Minnesota Statutes 2008, section 256.9657, subdivision 3, is amended to read:
2.22 		Subd. 3.Surcharge on HMOs and community integrated service networks. (a) 
2.23 	Effective October 1, 1992, each health maintenance organization with a certificate of 
2.24 	authority issued by the commissioner of health under chapter 62D and each community 
2.25 	integrated service network licensed by the commissioner under chapter 62N shall pay to 
2.26 	the commissioner of human services a surcharge equal to six-tenths of one percent of the 
2.27 	total premium revenues of the health maintenance organization or community integrated 
2.28 	service network as reported to the commissioner of health according to the schedule in 
2.29 	subdivision 4.
2.30 	(b) Effective October 1, 2010, in addition to the surcharge under paragraph (a), each 
2.31 	health maintenance organization shall pay to the commissioner a surcharge equal to 0.85 
2.32 	percent of total premium revenues and each county-based purchasing plan authorized 
2.33 	under section 256B.692 shall pay to the commissioner a surcharge equal to 1.45 percent 
3.1 	of the total premium revenues of the plan, as reported to the commissioner of health, 
3.2 	according to the payment schedule in subdivision 4. Notwithstanding section 256.9656, 
3.3 	money collected under this paragraph shall be deposited in the health care access fund 
3.4 	established in section 16A.724.
3.5 	(c) For purposes of this subdivision, total premium revenue means:
3.6 	(1) premium revenue recognized on a prepaid basis from individuals and groups 
3.7 	for provision of a specified range of health services over a defined period of time which 
3.8 	is normally one month, excluding premiums paid to a health maintenance organization 
3.9 	or community integrated service network from the Federal Employees Health Benefit 
3.10 	Program;
3.11 	(2) premiums from Medicare wrap-around subscribers for health benefits which 
3.12 	supplement Medicare coverage;
3.13 	(3) Medicare revenue, as a result of an arrangement between a health maintenance 
3.14 	organization or a community integrated service network and the Centers for Medicare 
3.15 	and Medicaid Services of the federal Department of Health and Human Services, for 
3.16 	services to a Medicare beneficiary, excluding Medicare revenue that states are prohibited 
3.17 	from taxing under sections 1854, 1860D-12, and 1876 of title XVIII of the federal Social 
3.18 	Security Act, codified as United States Code, title 42, sections 1395mm, 1395w-112, and 
3.19 	1395w-24, respectively, as they may be amended from time to time; and
3.20 	(4) medical assistance revenue, as a result of an arrangement between a health 
3.21 	maintenance organization or community integrated service network and a Medicaid state 
3.22 	agency, for services to a medical assistance beneficiary.
3.23 	If advance payments are made under clause (1) or (2) to the health maintenance 
3.24 	organization or community integrated service network for more than one reporting period, 
3.25 	the portion of the payment that has not yet been earned must be treated as a liability.
3.26 	(c) (d) When a health maintenance organization or community integrated service 
3.27 	network merges or consolidates with or is acquired by another health maintenance 
3.28 	organization or community integrated service network, the surviving corporation or the 
3.29 	new corporation shall be responsible for the annual surcharge originally imposed on 
3.30 	each of the entities or corporations subject to the merger, consolidation, or acquisition, 
3.31 	regardless of whether one of the entities or corporations does not retain a certificate of 
3.32 	authority under chapter 62D or a license under chapter 62N.
3.33 	(d) (e) Effective July 1 of each year, the surviving corporation's or the new 
3.34 	corporation's surcharge shall be based on the revenues earned in the second previous 
3.35 	calendar year by all of the entities or corporations subject to the merger, consolidation, 
3.36 	or acquisition regardless of whether one of the entities or corporations does not retain a 
4.1 	certificate of authority under chapter 62D or a license under chapter 62N until the total 
4.2 	premium revenues of the surviving corporation include the total premium revenues of all 
4.3 	the merged entities as reported to the commissioner of health.
4.4 	(e) (f) When a health maintenance organization or community integrated service 
4.5 	network, which is subject to liability for the surcharge under this chapter, transfers, 
4.6 	assigns, sells, leases, or disposes of all or substantially all of its property or assets, liability 
4.7 	for the surcharge imposed by this chapter is imposed on the transferee, assignee, or buyer 
4.8 	of the health maintenance organization or community integrated service network.
4.9 	(f) (g) In the event a health maintenance organization or community integrated 
4.10 	service network converts its licensure to a different type of entity subject to liability 
4.11 	for the surcharge under this chapter, but survives in the same or substantially similar 
4.12 	form, the surviving entity remains liable for the surcharge regardless of whether one of 
4.13 	the entities or corporations does not retain a certificate of authority under chapter 62D 
4.14 	or a license under chapter 62N.
4.15 	(g) (h) The surcharge assessed to a health maintenance organization or community 
4.16 	integrated service network ends when the entity ceases providing services for premiums 
4.17 	and the cessation is not connected with a merger, consolidation, acquisition, or conversion.

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

4.19 	Sec. 3. Minnesota Statutes 2009 Supplement, section 256.969, subdivision 2b, is 
4.20 	amended to read:
4.21 		Subd. 2b.Operating payment rates. In determining operating payment rates for 
4.22 	admissions occurring on or after the rate year beginning January 1, 1991, and every two 
4.23 	years after, or more frequently as determined by the commissioner, the commissioner 
4.24 	shall obtain operating data from an updated base year and establish operating payment 
4.25 	rates per admission for each hospital based on the cost-finding methods and allowable 
4.26 	costs of the Medicare program in effect during the base year. Rates under the general 
4.27 	assistance medical care, medical assistance, and MinnesotaCare programs shall not be 
4.28 	rebased to more current data on January 1, 1997, January 1, 2005, for the first 24 months 
4.29 	of the rebased period beginning January 1, 2009. For the first three 24  months of the 
4.30 	rebased period beginning January 1, 2011, rates shall  not be rebased at 74.25 percent of 
4.31 	the full value of the rebasing percentage change. From April 1, 2011, to March 31, 2012, 
4.32 	rates shall be rebased at 39.2 percent of the full value of the rebasing percentage change. 
4.33 	Effective April 1, 2012 January 1, 2013, rates shall be rebased at full value. The base year 
4.34 	operating payment rate per admission is standardized by the case mix index and adjusted 
4.35 	by the hospital cost index, relative values, and disproportionate population adjustment. 
5.1 	The cost and charge data used to establish operating rates shall only reflect inpatient 
5.2 	services covered by medical assistance and shall not include property cost information 
5.3 	and costs recognized in outlier payments.

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

5.5 	Sec. 4. Minnesota Statutes 2009 Supplement, section 256.969, subdivision 3a, is 
5.6 	amended to read:
5.7 		Subd. 3a.Payments. (a) Acute care hospital billings under the medical 
5.8 	assistance program must not be submitted until the recipient is discharged. However, 
5.9 	the commissioner shall establish monthly interim payments for inpatient hospitals that 
5.10 	have individual patient lengths of stay over 30 days regardless of diagnostic category. 
5.11 	Except as provided in section 256.9693, medical assistance reimbursement for treatment 
5.12 	of mental illness shall be reimbursed based on diagnostic classifications. Individual 
5.13 	hospital payments established under this section and sections 256.9685, 256.9686, and 
5.14 	256.9695, in addition to third party and recipient liability, for discharges occurring during 
5.15 	the rate year shall not exceed, in aggregate, the charges for the medical assistance covered 
5.16 	inpatient services paid for the same period of time to the hospital. This payment limitation 
5.17 	shall be calculated separately for medical assistance and general assistance medical 
5.18 	care services. The limitation on general assistance medical care shall be effective for 
5.19 	admissions occurring on or after July 1, 1991. Services that have rates established under 
5.20 	subdivision 11 or 12, must be limited separately from other services. After consulting with 
5.21 	the affected hospitals, the commissioner may consider related hospitals one entity and 
5.22 	may merge the payment rates while maintaining separate provider numbers. The operating 
5.23 	and property base rates per admission or per day shall be derived from the best Medicare 
5.24 	and claims data available when rates are established. The commissioner shall determine 
5.25 	the best Medicare and claims data, taking into consideration variables of recency of the 
5.26 	data, audit disposition, settlement status, and the ability to set rates in a timely manner. 
5.27 	The commissioner shall notify hospitals of payment rates by December 1 of the year 
5.28 	preceding the rate year. The rate setting data must reflect the admissions data used to 
5.29 	establish relative values. Base year changes from 1981 to the base year established for the 
5.30 	rate year beginning January 1, 1991, and for subsequent rate years, shall not be limited 
5.31 	to the limits ending June 30, 1987, on the maximum rate of increase under subdivision 
5.32 	1. The commissioner may adjust base year cost, relative value, and case mix index data 
5.33 	to exclude the costs of services that have been discontinued by the October 1 of the year 
5.34 	preceding the rate year or that are paid separately from inpatient services. Inpatient stays 
5.35 	that encompass portions of two or more rate years shall have payments established based 
6.1 	on payment rates in effect at the time of admission unless the date of admission preceded 
6.2 	the rate year in effect by six months or more. In this case, operating payment rates for 
6.3 	services rendered during the rate year in effect and established based on the date of 
6.4 	admission shall be adjusted to the rate year in effect by the hospital cost index.
6.5 	(b) For fee-for-service admissions occurring on or after July 1, 2002, the total 
6.6 	payment, before third-party liability and spenddown, made to hospitals for inpatient 
6.7 	services is reduced by .5 percent from the current statutory rates.
6.8 	(c) In addition to the reduction in paragraph (b), the total payment for fee-for-service 
6.9 	admissions occurring on or after July 1, 2003, made to hospitals for inpatient services 
6.10 	before third-party liability and spenddown, is reduced five percent from the current 
6.11 	statutory rates. Mental health services within diagnosis related groups 424 to 432, and 
6.12 	facilities defined under subdivision 16 are excluded from this paragraph.
6.13 	(d) In addition to the reduction in paragraphs (b) and (c), the total payment for 
6.14 	fee-for-service admissions occurring on or after August 1, 2005, made to hospitals for 
6.15 	inpatient services before third-party liability and spenddown, is reduced 6.0 percent 
6.16 	from the current statutory rates. Mental health services within diagnosis related groups 
6.17 	424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph. 
6.18 	Notwithstanding section 256.9686, subdivision 7, for purposes of this paragraph, medical 
6.19 	assistance does not include general assistance medical care. Payments made to managed 
6.20 	care plans shall be reduced for services provided on or after January 1, 2006, to reflect 
6.21 	this reduction.
6.22 	(e) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for 
6.23 	fee-for-service admissions occurring on or after July 1, 2008, through June 30, 2009, made 
6.24 	to hospitals for inpatient services before third-party liability and spenddown, is reduced 
6.25 	3.46 percent from the current statutory rates. Mental health services with diagnosis related 
6.26 	groups 424 to 432 and facilities defined under subdivision 16 are excluded from this 
6.27 	paragraph. Payments made to managed care plans shall be reduced for services provided 
6.28 	on or after January 1, 2009, through June 30, 2009, to reflect this reduction.
6.29 	(f) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for 
6.30 	fee-for-service admissions occurring on or after July 1, 2009, through June 30, 2010, made 
6.31 	to hospitals for inpatient services before third-party liability and spenddown, is reduced 
6.32 	1.9 percent from the current statutory rates. Mental health services with diagnosis related 
6.33 	groups 424 to 432 and facilities defined under subdivision 16 are excluded from this 
6.34 	paragraph. Payments made to managed care plans shall be reduced for services provided 
6.35 	on or after July 1, 2009, through June 30, 2010, to reflect this reduction.
7.1 	(g) In addition to the reductions in paragraphs (b), (c), and (d), the total payment 
7.2 	for fee-for-service admissions occurring on or after July 1, 2010, made to hospitals for 
7.3 	inpatient services before third-party liability and spenddown, is reduced 1.79 percent 
7.4 	from the current statutory rates. Mental health services with diagnosis related groups 
7.5 	424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph. 
7.6 	Payments made to managed care plans shall be reduced for services provided on or after 
7.7 	July 1, 2010, to reflect this reduction.
7.8 	(h) In addition to the reductions in paragraphs (b), (c), (d), (f), and (g), the total 
7.9 	payment for fee-for-service admissions occurring on or after July 1, 2009, made to 
7.10 	hospitals for inpatient services before third-party liability and spenddown, is reduced 
7.11 	one percent from the current statutory rates. Facilities defined under subdivision 16 are 
7.12 	excluded from this paragraph. Payments made to managed care plans shall be reduced for 
7.13 	services provided on or after October 1, 2009, to reflect this reduction.
7.14 	(i) In order to offset the ratable reductions provided for in this subdivision, the total 
7.15 	payment rate for medical assistance fee-for-service admissions occurring on or after July 
7.16 	1, 2010, to June 30, 2011, made to Minnesota hospitals for inpatient services before 
7.17 	third-party liability and spenddown, shall be increased by five percent from the current 
7.18 	statutory rates. Effective July 1, 2011, the rate increase under this paragraph shall be 
7.19 	reduced to 0.63 percent. For purposes of this paragraph, medical assistance does not 
7.20 	include general assistance medical care. The commissioner shall not adjust rates paid to a 
7.21 	prepaid health plan under contract with the commissioner to reflect payments provided 
7.22 	in this paragraph. The commissioner may utilize a settlement process to adjust rates in 
7.23 	excess of the Medicare upper limits on payments.

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

7.25 	Sec. 5. Minnesota Statutes 2008, section 256.969, subdivision 21, is amended to read:
7.26 		Subd. 21.Mental health or chemical dependency admissions; rates. (a) 
7.27 	Admissions under the general assistance medical care program occurring on or after 
7.28 	July 1, 1990, and admissions under medical assistance, excluding general assistance 
7.29 	medical care, occurring on or after July 1, 1990, and on or before September 30, 1992, 
7.30 	that are classified to a diagnostic category of mental health or chemical dependency 
7.31 	shall have rates established according to the methods of subdivision 14, except the per 
7.32 	day rate shall be multiplied by a factor of 2, provided that the total of the per day rates 
7.33 	shall not exceed the per admission rate. This methodology shall also apply when a hold 
7.34 	or commitment is ordered by the court for the days that inpatient hospital services are 
7.35 	medically necessary. Stays which are medically necessary for inpatient hospital services 
8.1 	and covered by medical assistance shall not be billable to any other governmental entity. 
8.2 	Medical necessity shall be determined under criteria established to meet the requirements 
8.3 	of section 256B.04, subdivision 15, or 256D.03, subdivision 7, paragraph (b). 
8.4 	(b) In order to ensure adequate access for the provision of mental health services 
8.5 	and to encourage broader delivery of these services outside the nonstate governmental 
8.6 	hospital setting, payment rates for medical assistance admissions occurring on or after 
8.7 	July 1, 2010, at a Minnesota private, not-for-profit hospital above the 75th percentile of all 
8.8 	Minnesota private, nonprofit hospitals for diagnosis-related groups 424 to 432 and 521 
8.9 	to 523 admissions paid by medical assistance for admissions occurring in calendar year 
8.10 	2007, shall be increased for these diagnosis-related groups at a percentage calculated to 
8.11 	cost not more than $10,000,000 each fiscal year, including state and federal shares. For 
8.12 	purposes of this paragraph, medical assistance does not include general assistance medical 
8.13 	care. The commissioner shall not adjust rates paid to a prepaid health plan under contract 
8.14 	with the commissioner to reflect payments provided in this paragraph. The commissioner 
8.15 	may utilize a settlement process to adjust rates in excess of the Medicare upper limits 
8.16 	on payments. 

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

8.18 	Sec. 6. Minnesota Statutes 2008, section 256.969, subdivision 26, is amended to read:
8.19 		Subd. 26.Greater Minnesota payment adjustment after June 30, 2001. (a) For 
8.20 	admissions occurring after June 30, 2001, the commissioner shall pay fee-for-service 
8.21 	inpatient admissions for the diagnosis-related groups specified in paragraph (b) at hospitals 
8.22 	located outside of the seven-county metropolitan area at the higher of:
8.23 	(1) the hospital's current payment rate for the diagnostic category to which the 
8.24 	diagnosis-related group belongs, exclusive of disproportionate population adjustments 
8.25 	received under subdivision 9 and hospital payment adjustments received under subdivision 
8.26 	23; or
8.27 	(2) 90 percent of the average payment rate for that diagnostic category for hospitals 
8.28 	located within the seven-county metropolitan area, exclusive of disproportionate 
8.29 	population adjustments received under subdivision 9 and hospital payment adjustments 
8.30 	received under subdivisions 20 and 23.
8.31 	(b) The payment increases provided in paragraph (a) apply to the following 
8.32 	diagnosis-related groups, as they fall within the diagnostic categories:
8.33 	(1) 370 cesarean section with complicating diagnosis;
8.34 	(2) 371 cesarean section without complicating diagnosis;
8.35 	(3) 372 vaginal delivery with complicating diagnosis;
9.1 	(4) 373 vaginal delivery without complicating diagnosis;
9.2 	(5) 386 extreme immaturity and respiratory distress syndrome, neonate;
9.3 	(6) 388 full-term neonates with other problems;
9.4 	(7) 390 prematurity without major problems;
9.5 	(8) 391 normal newborn;
9.6 	(9) 385 neonate, died or transferred to another acute care facility;
9.7 	(10) 425 acute adjustment reaction and psychosocial dysfunction;
9.8 	(11) 430 psychoses;
9.9 	(12) 431 childhood mental disorders; and
9.10 	(13) 164-167 appendectomy.
9.11 	(c) For medical assistance admissions occurring on or after July 1, 2010, the 
9.12 	payment rate under paragraph (a), clause (2), shall be increased to 100 percent from 90 
9.13 	percent. For purposes of this paragraph, medical assistance does not include general 
9.14 	assistance medical care. The commissioner shall not adjust rates paid to a prepaid 
9.15 	health plan under contract with the commissioner to reflect payments provided in this 
9.16 	paragraph. The commissioner may utilize a settlement process to adjust rates in excess of 
9.17 	the Medicare upper limits on payments. 

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

9.19 	Sec. 7. Minnesota Statutes 2008, section 256.969, is amended by adding a subdivision 
9.20 	to read:
9.21 		Subd. 31.Hospital payment adjustment after June 30, 2010. (a) For medical 
9.22 	assistance admissions occurring on or after July 1, 2010, to March 31, 2011, the 
9.23 	commissioner shall increase rates at Minnesota private, not-for-profit hospitals as follows:
9.24 	(1) for a hospital with total admissions reimbursed by government payers equal to or 
9.25 	greater than 50 percent, payment rates for inpatient hospital services shall be increased for 
9.26 	each admission by $250 multiplied by 437 percent;
9.27 	(2) for a hospital with total admissions reimbursed by government payers equal to 
9.28 	or greater than 40 percent but less than 50 percent, payment rates for inpatient hospital 
9.29 	services shall be increased for each admission by $250 multiplied by 349.6 percent; and
9.30 	(3) for a hospital with total admissions reimbursed by government payers of less 
9.31 	than 40 percent, payment rates for inpatient hospital services shall be increased for each 
9.32 	admission by $250 multiplied by 262.2 percent.
9.33 	(b) For medical assistance admissions occurring on or after April 1, 2011, the 
9.34 	commissioner shall increase rates at Minnesota private, not-for-profit hospitals as follows:
10.1 	(1) for a hospital with total admissions reimbursed by government payers equal to or 
10.2 	greater than 50 percent, payment rates for inpatient hospital services shall be increased for 
10.3 	each admission by $250 multiplied by 145 percent;
10.4 	(2) for a hospital with total admissions reimbursed by government payers equal to 
10.5 	or greater than 40 percent but less than 50 percent, payment rates for inpatient hospital 
10.6 	services shall be increased for each admission by $250 multiplied by 116 percent; and
10.7 	(3) for a hospital with total admissions reimbursed by government payers of less 
10.8 	than 40 percent, payment rates for inpatient hospital services shall be increased for each 
10.9 	admission by $250 multiplied by 87 percent.
10.10 	(c) For purposes of paragraphs (a) and (b), "government payers" means Medicare, 
10.11 	medical assistance, MinnesotaCare, and general assistance medical care.
10.12 	(d) For medical assistance admissions occurring on or after July 1, 2010, to March 
10.13 	31, 2011, the commissioner shall increase rates for inpatient hospital services at Minnesota 
10.14 	hospitals by $850 for each admission. For medical assistance admissions occurring on 
10.15 	or after April 1, 2011, the payment under this paragraph shall be reduced to $320 per 
10.16 	admission.
10.17 	(e) For purposes of this subdivision, medical assistance does not include general 
10.18 	assistance medical care. The commissioner shall not adjust rates paid to a prepaid 
10.19 	health plan under contract with the commissioner to reflect payments provided in this 
10.20 	subdivision. The commissioner may utilize a settlement process to adjust rates in excess 
10.21 	of the Medicare upper limits on payments.

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

10.23 	Sec. 8. Minnesota Statutes 2008, section 256B.04, subdivision 14a, is amended to read:
10.24 		Subd. 14a.Level of need determination. Nonemergency medical transportation 
10.25 	level of need determinations must be performed by a physician, a registered nurse working 
10.26 	under direct supervision of a physician, a physician's assistant, a nurse practitioner, a 
10.27 	licensed practical nurse, or a discharge planner. Nonemergency medical transportation 
10.28 	level of need determinations must not be performed more than semiannually annually  on 
10.29 	any individual, unless the individual's circumstances have sufficiently changed so as 
10.30 	to require a new level of need determination. Individuals residing in licensed nursing 
10.31 	facilities are exempt from a level of need determination and are eligible for special 
10.32 	transportation services until the individual no longer resides in a licensed nursing facility. 
10.33 	If a person authorized by this subdivision to perform a level of need determination 
10.34 	determines that an individual requires stretcher transportation, the individual is presumed 
11.1 	to maintain that level of need until otherwise determined by a person authorized to 
11.2 	perform a level of need determination, or for six months, whichever is sooner.

11.3 	Sec. 9. Minnesota Statutes 2008, section 256B.055, is amended by adding a 
11.4 	subdivision to read:
11.5 		Subd. 15.Adults without children. (a) Medical assistance may be paid for a 
11.6 	person who:
11.7 	(1) is over the age of 21 and under the age of 65;
11.8 	(2) resides in a household with no children;
11.9 	(3) is not pregnant; and
11.10 	(4) is not eligible under any other subdivision of this section.
11.11 	(b) Beginning October 1, 2010, persons who are eligible for medical assistance 
11.12 	under this subdivision are not eligible for long-term care services. 
11.13 	(c) Paragraph (b) does not apply to persons who meet the descriptions under section 
11.14 	1937(a)(2), subparagraph (B), of the Social Security Act. For purposes of this paragraph, 
11.15 	"medically frail" shall be defined as requiring assistance and being determined dependent 
11.16 	in at least two activities of daily living as defined in section 256B.0659, subdivision 1, 
11.17 	paragraph (b).

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

11.19 	Sec. 10. Minnesota Statutes 2008, section 256B.056, subdivision 3, is amended to read:
11.20 		Subd. 3.Asset limitations for individuals and families. (a) To be eligible for 
11.21 	medical assistance, a person must not individually own more than $3,000 in assets, or if a 
11.22 	member of a household with two family members, husband and wife, or parent and child, 
11.23 	the household must not own more than $6,000 in assets, plus $200 for each additional 
11.24 	legal dependent. In addition to these maximum amounts, an eligible individual or family 
11.25 	may accrue interest on these amounts, but they must be reduced to the maximum at the 
11.26 	time of an eligibility redetermination. The accumulation of the clothing and personal 
11.27 	needs allowance according to section 256B.35 must also be reduced to the maximum at 
11.28 	the time of the eligibility redetermination. The value of assets that are not considered in 
11.29 	determining eligibility for medical assistance is the value of those assets excluded under 
11.30 	the supplemental security income program for aged, blind, and disabled persons, with 
11.31 	the following exceptions: 
11.32 	(1) household goods and personal effects are not considered;
11.33 	(2) capital and operating assets of a trade or business that the local agency determines 
11.34 	are necessary to the person's ability to earn an income are not considered;
12.1 	(3) motor vehicles are excluded to the same extent excluded by the supplemental 
12.2 	security income program;
12.3 	(4) assets designated as burial expenses are excluded to the same extent excluded by 
12.4 	the supplemental security income program. Burial expenses funded by annuity contracts 
12.5 	or life insurance policies must irrevocably designate the individual's estate as contingent 
12.6 	beneficiary to the extent proceeds are not used for payment of selected burial expenses; and
12.7 	(5) effective upon federal approval, for a person who no longer qualifies as an 
12.8 	employed person with a disability due to loss of earnings, assets allowed while eligible 
12.9 	for medical assistance under section 256B.057, subdivision 9, are not considered for 12 
12.10 	months, beginning with the first month of ineligibility as an employed person with a 
12.11 	disability, to the extent that the person's total assets remain within the allowed limits of 
12.12 	section 256B.057, subdivision 9, paragraph (c).
12.13 	(b) No asset limit shall apply to persons eligible under section 256B.055, subdivision 
12.14 	15.

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

12.16 	Sec. 11. Minnesota Statutes 2008, section 256B.056, subdivision 4, is amended to read:
12.17 		Subd. 4.Income. (a) To be eligible for medical assistance, a person eligible under 
12.18 	section 256B.055, subdivisions 7, 7a, and 12, may have income up to 100 percent of 
12.19 	the federal poverty guidelines. Effective January 1, 2000, and each successive January, 
12.20 	recipients of supplemental security income may have an income up to the supplemental 
12.21 	security income standard in effect on that date. 
12.22 	(b) To be eligible for medical assistance, families and children may have an income 
12.23 	up to 133-1/3 percent of the AFDC income standard in effect under the July 16, 1996, 
12.24 	AFDC state plan. Effective July 1, 2000, the base AFDC standard in effect on July 16, 
12.25 	1996, shall be increased by three percent.
12.26 	(c) Effective July 1, 2002, to be eligible for medical assistance, families and children 
12.27 	may have an income up to 100 percent of the federal poverty guidelines for the family size.
12.28 	(d) Effective June 1, 2010, to be eligible for medical assistance under section 
12.29 	256B.055, subdivision 15, a person may have an income up to 75 percent of federal 
12.30 	poverty guidelines for the family size.
12.31 	(e) In computing income to determine eligibility of persons under paragraphs (a) to 
12.32 	(c)(d) who are not residents of long-term care facilities, the commissioner shall disregard 
12.33 	increases in income as required by Public Law Numbers 94-566, section 503; 99-272; 
12.34 	and 99-509. Veterans aid and attendance benefits and Veterans Administration unusual 
12.35 	medical expense payments are considered income to the recipient.

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

13.2 	Sec. 12. Minnesota Statutes 2009 Supplement, section 256B.0625, subdivision 13h, 
13.3 	is amended to read:
13.4 		Subd. 13h.Medication therapy management services. (a) Medical assistance 
13.5 	and general assistance medical care cover medication therapy management services for 
13.6 	a recipient taking four or more prescriptions to treat or prevent two or more chronic 
13.7 	medical conditions, or a recipient with a drug therapy problem that is identified or prior 
13.8 	authorized by the commissioner that has resulted or is likely to result in significant 
13.9 	nondrug program costs. The commissioner may cover medical therapy management 
13.10 	services under MinnesotaCare if the commissioner determines this is cost-effective. For 
13.11 	purposes of this subdivision, "medication therapy management" means the provision 
13.12 	of the following pharmaceutical care services by a licensed pharmacist to optimize the 
13.13 	therapeutic outcomes of the patient's medications:
13.14 	(1) performing or obtaining necessary assessments of the patient's health status;
13.15 	(2) formulating a medication treatment plan;
13.16 	(3) monitoring and evaluating the patient's response to therapy, including safety 
13.17 	and effectiveness;
13.18 	(4) performing a comprehensive medication review to identify, resolve, and prevent 
13.19 	medication-related problems, including adverse drug events;
13.20 	(5) documenting the care delivered and communicating essential information to 
13.21 	the patient's other primary care providers;
13.22 	(6) providing verbal education and training designed to enhance patient 
13.23 	understanding and appropriate use of the patient's medications;
13.24 	(7) providing information, support services, and resources designed to enhance 
13.25 	patient adherence with the patient's therapeutic regimens; and
13.26 	(8) coordinating and integrating medication therapy management services within the 
13.27 	broader health care management services being provided to the patient.
13.28 	Nothing in this subdivision shall be construed to expand or modify the scope of practice of 
13.29 	the pharmacist as defined in section 151.01, subdivision 27.
13.30 	(b) To be eligible for reimbursement for services under this subdivision, a pharmacist 
13.31 	must meet the following requirements:
13.32 	(1) have a valid license issued under chapter 151;
13.33 	(2) have graduated from an accredited college of pharmacy on or after May 1996, or 
13.34 	completed a structured and comprehensive education program approved by the Board of 
13.35 	Pharmacy and the American Council of Pharmaceutical Education for the provision and 
14.1 	documentation of pharmaceutical care management services that has both clinical and 
14.2 	didactic elements;
14.3 	(3) be practicing in an ambulatory care setting as part of a multidisciplinary team or 
14.4 	have developed a structured patient care process that is offered in a private or semiprivate 
14.5 	patient care area that is separate from the commercial business that also occurs in the 
14.6 	setting, or in home settings, excluding long-term care and group homes, if the service is 
14.7 	ordered by the provider-directed care coordination team; and
14.8 	(4) make use of an electronic patient record system that meets state standards.
14.9 	(c) For purposes of reimbursement for medication therapy management services, 
14.10 	the commissioner may enroll individual pharmacists as medical assistance and general 
14.11 	assistance medical care providers. The commissioner may also establish contact 
14.12 	requirements between the pharmacist and recipient, including limiting the number of 
14.13 	reimbursable consultations per recipient.
14.14 	(d) If there are no pharmacists who meet the requirements of paragraph (b) practicing 
14.15 	within a reasonable geographic distance of the patient, a pharmacist who meets the 
14.16 	requirements may provide the services via two-way interactive video. Reimbursement 
14.17 	shall be at the same rates and under the same conditions that would otherwise apply to 
14.18 	the services provided. To qualify for reimbursement under this paragraph, the pharmacist 
14.19 	providing the services must meet the requirements of paragraph (b), and must be located 
14.20 	within an ambulatory care setting approved by the commissioner. The patient must also 
14.21 	be located within an ambulatory care setting approved by the commissioner. Services 
14.22 	provided under this paragraph may not be transmitted into the patient's residence.
14.23 	(e) The commissioner shall establish a pilot project for an intensive medication 
14.24 	therapy management program for patients identified by the commissioner with multiple 
14.25 	chronic conditions and a high number of medications who are at high risk of preventable 
14.26 	hospitalizations, emergency room use, medication complications, and suboptimal 
14.27 	treatment outcomes due to medication-related problems. For purposes of the pilot 
14.28 	project, medication therapy management services may be provided in a patient's home 
14.29 	or community setting, in addition to other authorized settings. The commissioner may 
14.30 	waive existing payment policies and establish special payment rates for the pilot project. 
14.31 	The pilot project must be designed to produce a net savings to the state compared to the 
14.32 	estimated costs that would otherwise be incurred for similar patients without the program. 
14.33 	The pilot project must begin by January 1, 2010, and end June 30, 2012.

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

15.1 	Sec. 13. Minnesota Statutes 2008, section 256B.0625, subdivision 22, is amended to 
15.2 	read:
15.3 		Subd. 22.Hospice care. Medical assistance covers hospice care services under 
15.4 	Public Law 99-272, section 9505, to the extent authorized by rule, except that a recipient 
15.5 	age 21 or under who elects to receive hospice services does not waive coverage for 
15.6 	services that are related to the treatment of the condition for which a diagnosis of terminal 
15.7 	illness has been made.

15.8 	EFFECTIVE DATE. This section is effective retroactive to March 23, 2010.

15.9 	Sec. 14. Minnesota Statutes 2008, section 256B.0625, is amended by adding a 
15.10 	subdivision to read:
15.11 		Subd. 54.Services provided in birth centers. (a) Medical assistance covers 
15.12 	services provided in a licensed birth center by a licensed health professional if the service 
15.13 	would otherwise be covered if provided in a hospital.
15.14 	(b) Facility services provided by a birth center shall be paid at the lower of billed 
15.15 	charges or 70 percent of the statewide average for a facility payment rate made to a 
15.16 	hospital for an uncomplicated vaginal birth as determined using the most recent calendar 
15.17 	year for which complete claims data is available. If a recipient is transported from a birth 
15.18 	center to a hospital prior to the delivery, the payment for facility services to the birth center 
15.19 	shall be the lower of billed charges or 15 percent of the average facility payment made to a 
15.20 	hospital for the services provided for an uncomplicated vaginal delivery as determined 
15.21 	using the most recent calendar year for which complete claims data is available.
15.22 	(c) Nursery care services provided by a birth center shall be paid the lower of billed 
15.23 	charges or 70 percent of the statewide average for a payment rate paid to a hospital for 
15.24 	nursery care as determined by using the most recent calendar year for which complete 
15.25 	claims data is available.
15.26 	(d) Professional services provided by traditional midwives licensed under chapter 
15.27 	147D shall be paid at the lower of billed charges or 100 percent of the rate paid to a 
15.28 	physician performing the same services. If a recipient is transported from a birth center to 
15.29 	a hospital prior to the delivery, a licensed traditional midwife who does not perform the 
15.30 	delivery may not bill for any delivery services. Services are not covered if provided by an 
15.31 	unlicensed traditional midwife.
15.32 	(e) The commissioner shall apply for any necessary waivers from the Centers for 
15.33 	Medicare and Medicaid Services to allow birth centers and birth center providers to be 
15.34 	reimbursed.

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

16.2 	Sec. 15. Minnesota Statutes 2008, section 256B.0631, subdivision 1, is amended to 
16.3 	read:
16.4 		Subdivision 1.Co-payments. (a) Except as provided in subdivision 2, the medical 
16.5 	assistance benefit plan shall include the following co-payments for all recipients, effective 
16.6 	for services provided on or after October 1, 2003, and before January 1, 2009:
16.7 	(1) $3 per nonpreventive visit. For purposes of this subdivision, a visit means an 
16.8 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
16.9 	established illness, and which is delivered in an ambulatory setting by a physician or 
16.10 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
16.11 	audiologist, optician, or optometrist;
16.12 	(2) $3 for eyeglasses;
16.13 	(3) $6 for nonemergency visits to a hospital-based emergency room; and
16.14 	(4) $3 per brand-name drug prescription and $1 per generic drug prescription, 
16.15 	subject to a $12 per month maximum for prescription drug co-payments. No co-payments 
16.16 	shall apply to antipsychotic drugs when used for the treatment of mental illness.
16.17 	(b) Except as provided in subdivision 2, the medical assistance benefit plan shall 
16.18 	include the following co-payments for all recipients, effective for services provided on or 
16.19 	after January 1, 2009, and before January 1, 2011:
16.20 	(1) $6 for nonemergency visits to a hospital-based emergency room; 
16.21 	(2) $3 per brand-name drug prescription and $1 per generic drug prescription, 
16.22 	subject to a $7 per month maximum for prescription drug co-payments. No co-payments 
16.23 	shall apply to antipsychotic drugs when used for the treatment of mental illness; and
16.24 	(3) for individuals identified by the commissioner with income at or below 100 
16.25 	percent of the federal poverty guidelines, total monthly co-payments must not exceed five 
16.26 	percent of family income. For purposes of this paragraph, family income is the total 
16.27 	earned and unearned income of the individual and the individual's spouse, if the spouse is 
16.28 	enrolled in medical assistance and also subject to the five percent limit on co-payments.
16.29 	(c) Except as provided in subdivision 2, the medical assistance benefit plan shall 
16.30 	include the following co-payments for all recipients, effective for services provided on 
16.31 	or after January 1, 2011:
16.32 	(1) $3.50 for nonemergency visits to a hospital-based emergency room;
16.33 	(2) $3 per brand-name drug prescription and $1 per generic drug prescription, 
16.34 	subject to a $7 per month maximum for prescription drug co-payments. No co-payments 
16.35 	shall apply to antipsychotic drugs when used for the treatment of mental illness; and 
17.1 	(3) for individuals identified by the commissioner with income at or below 100 
17.2 	percent of the federal poverty guidelines, total monthly co-payments must not exceed five 
17.3 	percent of family income. For purposes of this paragraph, family income is the total 
17.4 	earned and unearned income of the individual and individual's spouse, if the spouse is 
17.5 	enrolled in medical assistance and also subject to the five percent limit in co-payments.
17.6 	(d) Recipients of medical assistance are responsible for all co-payments in this 
17.7 	subdivision.

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

17.9 	Sec. 16. Minnesota Statutes 2008, section 256B.0631, subdivision 3, is amended to 
17.10 	read:
17.11 		Subd. 3.Collection. (a) The medical assistance reimbursement to the provider 
17.12 	shall be reduced by the amount of the co-payment, except that reimbursements shall 
17.13 	not be reduced:
17.14 	(1) once a recipient has reached the $12 per month maximum or the $7 per month 
17.15 	maximum effective January 1, 2009, for prescription drug co-payments; or
17.16 	(2) for a recipient identified by the commissioner under 100 percent of the federal 
17.17 	poverty guidelines who has met their monthly five percent co-payment limit.
17.18 	(b) The provider collects the co-payment from the recipient. Providers may not deny 
17.19 	services to recipients who are unable to pay the co-payment.
17.20 	(c) Medical assistance reimbursement to fee-for-service providers and payments to 
17.21 	managed care plans and county-based purchasing plans shall not be increased as a result 
17.22 	of the removal of the co-payments effective January 1, 2009:
17.23 	(1) as a result of the removal of the co-payments effective January 1, 2009; or
17.24 	(2) as a result of the reduction of the co-payments effective January 1, 2011.

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

17.26 	Sec. 17. Minnesota Statutes 2008, section 256B.0753, is amended by adding a 
17.27 	subdivision to read:
17.28 		Subd. 4.Consistency with federal reform efforts. The commissioner may modify 
17.29 	provisions of the care coordination payment system in order to be consistent with Public 
17.30 	Law 111-14, section 2703.

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

18.1 	Sec. 18. [256B.0755] HEALTH CARE DELIVERY SYSTEMS 
18.2 	DEMONSTRATION PROJECT.
18.3 		Subdivision 1.Implementation. (a) The commissioner shall develop and authorize 
18.4 	a demonstration project to test alternative and innovative health care delivery systems, 
18.5 	including accountable care organizations that provides services to a specified patient 
18.6 	population for an agreed upon total cost of care payment. The commissioner shall develop 
18.7 	a request for proposals for participation in the demonstration project in consultation with 
18.8 	hospitals, primary care providers, health plans, and other key stakeholders.
18.9 	(b) In developing the request for proposals, the commissioner shall:
18.10 	(1) establish uniform statewide methods of forecasting total cost of care to be used 
18.11 	by the commissioner for the health care delivery system projects;
18.12 	(2) identify key indicators of quality, access, patient satisfaction, and other 
18.13 	performance indicators that will be measured, in addition to indicators for measuring 
18.14 	cost savings;
18.15 	(3) allow maximum flexibility to encourage innovation and variation so that a 
18.16 	variety of provider collaborations are able to become health care delivery systems if 
18.17 	they are willing and able to be held accountable for the total cost of care and quality and 
18.18 	performance standards established by the commissioner;
18.19 	(4) encourage and authorize different levels and types of financial risk;
18.20 	(5) encourage and authorize projects representing a wide variety of geographic 
18.21 	locations, patient populations, provider relationships, and care coordination models;
18.22 	(6) encourage and authorize projects that involve close partnerships between the 
18.23 	health care delivery system and counties and nonprofit agencies that provide services to 
18.24 	patients enrolled with the health care delivery system, including social services, public 
18.25 	health, mental health, community-based services, and continuing care; and
18.26 	(7) encourage and authorize projects established by community hospitals, clinics, 
18.27 	and other providers in rural communities.
18.28 	(c) To be eligible to participate in the demonstration project, a health care delivery 
18.29 	system must:
18.30 	(1) provide required covered services and care coordination to recipients enrolled in 
18.31 	the health care delivery system;
18.32 	(2) establish a process to monitor enrollment and ensure the quality of care provided;
18.33 	(3) in cooperation with counties, coordinate the delivery of health care services with 
18.34 	existing social services programs;
18.35 	(4) provide a system for advocacy and consumer protection; and
19.1 	(5) adopt innovative and cost-effective methods of care delivery and coordination, 
19.2 	which may include the use of allied health professionals, telemedicine, patient educators, 
19.3 	care coordinators, and community health workers.
19.4 	(d) A health care delivery system may be formed by a county, an integrated delivery 
19.5 	system or network, a physician-hospital organization, an academic center, a county-based 
19.6 	purchasing plan, a managed care plan, or other entity. A health care delivery system 
19.7 	may contract with a managed care plan or a county-based purchasing plan to provide 
19.8 	administrative services, including the administration of a payment system using the 
19.9 	payment methods established by the commissioner for health care delivery systems.
19.10 		Subd. 2.Enrollment. (a) Initially, individuals eligible for medical assistance 
19.11 	under section 256B.055, subdivision 15, shall be eligible for enrollment in a health care 
19.12 	delivery system.
19.13 	(b) Eligible applicants and recipients may enroll in a health care delivery system if 
19.14 	a system serves the county in which the applicant or recipient resides. If more than one 
19.15 	health care delivery system is available, the applicant or recipient shall be allowed to 
19.16 	choose among the available delivery systems. The commissioner may assign an applicant 
19.17 	or recipient to a health care delivery system if a health care delivery system is available 
19.18 	and no choice has been made by the applicant or recipient.
19.19 		Subd. 3.Accountability. (a) Health care delivery systems must accept responsibility 
19.20 	for the quality of care and the cost of care provided to its enrollees.
19.21 	(b) A health care delivery system may contract and coordinate with providers and 
19.22 	clinics for the delivery of services and shall contract with community health clinics, 
19.23 	federally qualified health centers, and rural clinics to the extent practicable.
19.24 		Subd. 4.Payment system. (a) In developing a payment system for health care 
19.25 	delivery systems, the commissioner shall establish a total cost of care benchmark to be 
19.26 	paid for services provided to the recipients enrolled in a health care delivery system. The 
19.27 	commissioner shall establish a payment arrangement with the health care delivery system 
19.28 	to provide these services during the specified time period at a cost that is equal to or 
19.29 	less than 97 percent of the forecasted total cost of care for the enrollee population using 
19.30 	predetermined payments for the recipients enrolled in the health care delivery system 
19.31 	rather than fee-for-service methods that pay for units of service. The actual amount to be 
19.32 	paid may be negotiated, but may not exceed 97 percent of the forecasted cost.
19.33 	(b) The payment system may include incentive payments to health care delivery 
19.34 	systems that meet or exceed annual quality and performance targets realized through 
19.35 	the coordination of care.
20.1 	(c) An amount equal to the savings realized to the general fund as a result of the 
20.2 	demonstration project shall be transferred each fiscal year to the health care access fund.
20.3 		Subd. 5.Hennepin and Ramsey Counties Pilot Program. (a) The commissioner, 
20.4 	upon federal approval of a new waiver request or amendment of an existing demonstration, 
20.5 	may establish a pilot program in Hennepin County or Ramsey County, or both, to test 
20.6 	alternative and innovative integrated health care delivery networks.
20.7 	(b) Individuals eligible for the pilot program shall be individuals who are eligible for 
20.8 	medical assistance under section 256B.055, subdivision 15, and who reside in Hennepin 
20.9 	County or Ramsey County.
20.10 	(c) Individuals enrolled in the pilot shall be enrolled in an integrated health care 
20.11 	delivery network in their county of residence. The integrated health care delivery network 
20.12 	in Hennepin County shall be a network, such as an accountable care organization or 
20.13 	a community-based collaborative care network, created by or including the Hennepin 
20.14 	County Medical Center. The integrated health care delivery network in Ramsey County 
20.15 	shall be a network, such as an accountable care organization or community-based 
20.16 	collaborative care network, created by or including Regions Hospital.
20.17 	(d) The commissioner shall cap pilot program enrollment at 7,000 enrollees for 
20.18 	Hennepin County and 3,500 enrollees for Ramsey County.
20.19 	(e) In developing a payment system for the pilot programs, the commissioner shall 
20.20 	establish a total cost of care for the recipients enrolled in the pilot programs that equals 
20.21 	the cost of care that would otherwise be spent for these enrollees in the prepaid medical 
20.22 	assistance program.
20.23 	(f) Counties may transfer funds necessary to support the nonfederal share of 
20.24 	payments for integrated health care delivery networks in their county. Such transfers per 
20.25 	county shall not exceed 15 percent of the expected expenses for county enrollees.
20.26 	(g) The commissioner shall apply to the federal government for, or as appropriate, 
20.27 	cooperate with counties, providers, or other entities that are applying for any applicable 
20.28 	grant or demonstration under the Patient Protection and Affordable Health Care Act, Public 
20.29 	Law 111-148, or the Health Care and Education Reconciliation Act of 2010, Public Law 
20.30 	111-152, that would further the purposes of or assist in the creation of an integrated health 
20.31 	care delivery network for the purposes of this subdivision, including, but not limited to, a 
20.32 	global payment demonstration or the community-based collaborative care network grants.
20.33 		Subd. 6.Federal approval. The commissioner shall apply for any federal waivers 
20.34 	or other federal approval required to implement this section. The commissioner shall 
20.35 	also apply for any applicable grant or demonstration under the Patient Protection and 
20.36 	Affordable Health Care Act, Public Law 111-148, or the Health Care and Education 
21.1 	Reconciliation Act of 2010, Public Law 111-152, that would further the purposes of or 
21.2 	assist in the establishment of accountable care organizations.
21.3 		Subd. 7.Expansion. The commissioner shall explore the expansion of the 
21.4 	demonstration project to include additional medical assistance and MinnesotaCare 
21.5 	enrollees, and shall seek participation of Medicare in demonstration projects.

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

21.7 	Sec. 19. Minnesota Statutes 2009 Supplement, section 256B.69, subdivision 5a, 
21.8 	is amended to read:
21.9 		Subd. 5a.Managed care contracts. (a) Managed care contracts under this section 
21.10 	and sections 256L.12 and 256D.03, shall be entered into or renewed on a calendar year 
21.11 	basis beginning January 1, 1996. Managed care contracts which were in effect on June 
21.12 	30, 1995, and set to renew on July 1, 1995, shall be renewed for the period July 1, 1995 
21.13 	through December 31, 1995 at the same terms that were in effect on June 30, 1995. The 
21.14 	commissioner may issue separate contracts with requirements specific to services to 
21.15 	medical assistance recipients age 65 and older.
21.16 	(b) A prepaid health plan providing covered health services for eligible persons 
21.17 	pursuant to chapters 256B, 256D, and 256L, is responsible for complying with the terms 
21.18 	of its contract with the commissioner. Requirements applicable to managed care programs 
21.19 	under chapters 256B, 256D, and 256L, established after the effective date of a contract 
21.20 	with the commissioner take effect when the contract is next issued or renewed.
21.21 	(c) Effective for services rendered on or after January 1, 2003, the commissioner 
21.22 	shall withhold five percent of managed care plan payments under this section and 
21.23 	county-based purchasing plan's payment rate plan payments under section 256B.692 for 
21.24 	the prepaid medical assistance and general assistance medical care programs pending 
21.25 	completion of performance targets. Each performance target must be quantifiable, 
21.26 	objective, measurable, and reasonably attainable, except in the case of a performance target 
21.27 	based on a federal or state law or rule. Criteria for assessment of each performance target 
21.28 	must be outlined in writing prior to the contract effective date. The managed care plan 
21.29 	must demonstrate, to the commissioner's satisfaction, that the data submitted regarding 
21.30 	attainment of the performance target is accurate. The commissioner shall periodically 
21.31 	change the administrative measures used as performance targets in order to improve plan 
21.32 	performance across a broader range of administrative services. The performance targets 
21.33 	must include measurement of plan efforts to contain spending on health care services and 
21.34 	administrative activities. The commissioner may adopt plan-specific performance targets 
21.35 	that take into account factors affecting only one plan, including characteristics of the 
22.1 	plan's enrollee population. The withheld funds must be returned no sooner than July of the 
22.2 	following year if performance targets in the contract are achieved. The commissioner may 
22.3 	exclude special demonstration projects under subdivision 23.
22.4 	(d) Effective for services rendered on or after January 1, 2009, through December 31, 
22.5 	2009, the commissioner shall withhold three percent of managed care plan payments under 
22.6 	this section and county-based purchasing plan payments under section 256B.692 for the 
22.7 	prepaid medical assistance and general assistance medical care programs. The withheld 
22.8 	funds must be returned no sooner than July 1 and no later than July 31 of the following 
22.9 	year. The commissioner may exclude special demonstration projects under subdivision 23.
22.10 	The return of the withhold under this paragraph is not subject to the requirements of 
22.11 	paragraph (c).
22.12 	(e) Effective for services provided on or after January 1, 2010, the commissioner 
22.13 	shall require that managed care plans use the assessment and authorization processes, 
22.14 	forms, timelines, standards, documentation, and data reporting requirements, protocols, 
22.15 	billing processes, and policies consistent with medical assistance fee-for-service or the 
22.16 	Department of Human Services contract requirements consistent with medical assistance 
22.17 	fee-for-service or the Department of Human Services contract requirements for all 
22.18 	personal care assistance services under section 256B.0659.
22.19 	(f) Effective for services rendered on or after January 1, 2010, through December 
22.20 	31, 2010, the commissioner shall withhold 3.5 percent of managed care plan payments 
22.21 	under this section and county-based purchasing plan payments under section 256B.692 
22.22 	for the prepaid medical assistance program. The withheld funds must be returned no 
22.23 	sooner than July 1 and no later than July 31 of the following year. The commissioner may 
22.24 	exclude special demonstration projects under subdivision 23.
22.25 	(g) Effective for services rendered on or after January 1, 2011, the commissioner 
22.26 	shall include as part of the performance targets described in paragraph (c) a reduction in 
22.27 	the health plan's emergency room utilization rate for state health care program enrollees 
22.28 	by a measurable rate of five percent from the plan's utilization rate for state health care 
22.29 	program enrollees for the previous calendar year.
22.30 	The withheld funds must be returned no sooner than July 1 and no later than July 
22.31 	31 of the following calendar year if the managed care plan or county-based purchasing 
22.32 	plan demonstrates to the satisfaction of the commissioner that a reduction in the utilization 
22.33 	rate was achieved.
22.34 	The withhold described in this paragraph shall continue for each consecutive 
22.35 	contract period until the plan's emergency room utilization rate for state health care 
23.1 	program enrollees is reduced by 25 percent of the plan's emergency room utilization rate 
23.2 	for state health care program enrollees for calendar year 2009.
23.3 	(g) (h) Effective for services rendered on or after January 1, 2011, through December 
23.4 	31, 2011, the commissioner shall withhold four percent of managed care plan payments 
23.5 	under this section and county-based purchasing plan payments under section 256B.692
23.6 	for the prepaid medical assistance program. The withheld funds must be returned no 
23.7 	sooner than July 1 and no later than July 31 of the following year. The commissioner may 
23.8 	exclude special demonstration projects under subdivision 23.
23.9 	(h) (i) Effective for services rendered on or after January 1, 2012, through December 
23.10 	31, 2012, the commissioner shall withhold 4.5 percent of managed care plan payments 
23.11 	under this section and county-based purchasing plan payments under section 256B.692 
23.12 	for the prepaid medical assistance program. The withheld funds must be returned no 
23.13 	sooner than July 1 and no later than July 31 of the following year. The commissioner may 
23.14 	exclude special demonstration projects under subdivision 23.
23.15 	(i) (j) Effective for services rendered on or after January 1, 2013, through December 
23.16 	31, 2013, the commissioner shall withhold 4.5 percent of managed care plan payments 
23.17 	under this section and county-based purchasing plan payments under section 256B.692 
23.18 	for the prepaid medical assistance program. The withheld funds must be returned no 
23.19 	sooner than July 1 and no later than July 31 of the following year. The commissioner may 
23.20 	exclude special demonstration projects under subdivision 23.
23.21 	(j) (k) Effective for services rendered on or after January 1, 2014, the commissioner 
23.22 	shall withhold three percent of managed care plan payments under this section and 
23.23 	county-based purchasing plan payments under section 256B.692 for the prepaid medical 
23.24 	assistance and prepaid general assistance medical care programs. The withheld funds must 
23.25 	be returned no sooner than July 1 and no later than July 31 of the following year. The 
23.26 	commissioner may exclude special demonstration projects under subdivision 23.
23.27 	(k) (l) A managed care plan or a county-based purchasing plan under section 
23.28 	256B.692 may include as admitted assets under section 62D.044 any amount withheld 
23.29 	under this section that is reasonably expected to be returned.
23.30 	(l) (m) Contracts between the commissioner and a prepaid health plan are exempt 
23.31 	from the set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph 
23.32 	(a), and 7.

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

23.34 	Sec. 20. Minnesota Statutes 2008, section 256B.69, is amended by adding a 
23.35 	subdivision to read:
24.1 		Subd. 5k.Rate modifications. For services rendered on or after October 1, 2010, 
24.2 	the total payment made to managed care plans and county-based purchasing plans under 
24.3 	the medical assistance program shall be increased by 1.28 percent. This increase shall be 
24.4 	paid from the health care access fund established in section 16A.724.

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

24.6 	Sec. 21. Minnesota Statutes 2009 Supplement, section 256B.76, subdivision 1, is 
24.7 	amended to read:
24.8 		Subdivision 1.Physician reimbursement.  (a) Effective for services rendered on 
24.9 	or after October 1, 1992, the commissioner shall make payments for physician services 
24.10 	as follows:
24.11 	(1) payment for level one Centers for Medicare and Medicaid Services' common 
24.12 	procedural coding system codes titled "office and other outpatient services," "preventive 
24.13 	medicine new and established patient," "delivery, antepartum, and postpartum care," 
24.14 	"critical care," cesarean delivery and pharmacologic management provided to psychiatric 
24.15 	patients, and level three codes for enhanced services for prenatal high risk, shall be paid 
24.16 	at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 
24.17 	30, 1992. If the rate on any procedure code within these categories is different than the 
24.18 	rate that would have been paid under the methodology in section 256B.74, subdivision 2, 
24.19 	then the larger rate shall be paid;
24.20 	(2) payments for all other services shall be paid at the lower of (i) submitted charges, 
24.21 	or (ii) 15.4 percent above the rate in effect on June 30, 1992; and
24.22 	(3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th 
24.23 	percentile of 1989, less the percent in aggregate necessary to equal the above increases 
24.24 	except that payment rates for home health agency services shall be the rates in effect 
24.25 	on September 30, 1992.
24.26 	(b) Effective for services rendered on or after January 1, 2000, payment rates for 
24.27 	physician and professional services shall be increased by three percent over the rates 
24.28 	in effect on December 31, 1999, except for home health agency and family planning 
24.29 	agency services. The increases in this paragraph shall be implemented January 1, 2000, 
24.30 	for managed care.
24.31 	(c) Effective for services rendered on or after July 1, 2009, payment rates for 
24.32 	physician and professional services shall be reduced by five percent over the rates 
24.33 	in effect on June 30, 2009.  Effective for services rendered on or after July 1, 2011, 
24.34 	payment rates for physician and professional services shall be reduced an additional 
24.35 	1.5 percent for the medical assistance and general assistance medical care programs. 
25.1 	This reduction does These reductions do  not apply to office or other outpatient visits, 
25.2 	preventive medicine visits and, or  family planning visits billed by physicians, advanced 
25.3 	practice nurses, or physician assistants in a family planning agency or in one of the 
25.4 	following primary care practices: general practice, general internal medicine, general 
25.5 	pediatrics, general geriatrics, and family medicine. This reduction does These reductions 
25.6 	do  not apply to federally qualified health centers, rural health centers, and Indian health 
25.7 	services. Effective October 1, 2009 July 1, 2011, payments made to managed care plans 
25.8 	and county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall 
25.9 	reflect the additional payment reduction described in this paragraph.
25.10 	(d) Effective for services rendered on or after October 1, 2010, payment rates for 
25.11 	physician and professional services billed by physicians employed by and clinics owned 
25.12 	by a nonprofit health maintenance organization shall be increased by 25 percent. Effective 
25.13 	October 1, 2010, payments made to managed care plans and county-based purchasing 
25.14 	plans under sections 256B.69, 256B.692, and 256L.12, shall reflect the payment increase 
25.15 	described in this paragraph.

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

25.17 	Sec. 22. Minnesota Statutes 2008, section 256B.76, subdivision 2, is amended to read:
25.18 		Subd. 2.Dental reimbursement.  (a) Effective for services rendered on or after 
25.19 	October 1, 1992, the commissioner shall make payments for dental services as follows:
25.20 	(1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25 
25.21 	percent above the rate in effect on June 30, 1992; and
25.22 	(2) dental rates shall be converted from the 50th percentile of 1982 to the 50th 
25.23 	percentile of 1989, less the percent in aggregate necessary to equal the above increases.
25.24 	(b) Beginning October 1, 1999, the payment for tooth sealants and fluoride treatments 
25.25 	shall be the lower of (1) submitted charge, or (2) 80 percent of median 1997 charges.
25.26 	(c) Effective for services rendered on or after January 1, 2000, payment rates for 
25.27 	dental services shall be increased by three percent over the rates in effect on December 
25.28 	31, 1999.
25.29 	(d) Effective for services provided on or after January 1, 2002, payment for 
25.30 	diagnostic examinations and dental x-rays provided to children under age 21 shall be the 
25.31 	lower of (1) the submitted charge, or (2) 85 percent of median 1999 charges.
25.32 	(e) The increases listed in paragraphs (b) and (c) shall be implemented January 1, 
25.33 	2000, for managed care.
25.34 	(f) Effective for dental services rendered on or after October 1, 2010, by a 
25.35 	state-operated dental clinic, payment shall be paid on a reasonable cost basis that is based 
26.1 	on the Medicare principles of reimbursement. This payment shall be effective for services 
26.2 	rendered on or after January 1, 2011, to recipients enrolled in managed care plans or 
26.3 	county-based purchasing plans.
26.4 	(g) Beginning in fiscal year 2011, if the payments to state-operated dental clinics 
26.5 	in paragraph (f), including state and federal shares, are less than $1,850,000 per fiscal 
26.6 	year, a supplemental state payment equal to the difference between the total payments 
26.7 	in paragraph (f) and $1,850,000 shall be paid from the general fund to state-operated 
26.8 	services for the operation of the dental clinics.
26.9 	(h) If the cost-based payment system for state-operated dental clinics described in 
26.10 	paragraph (f) does not receive federal approval, then state-operated dental clinics shall be 
26.11 	designated as critical access dental providers under subdivision 4, paragraph (b), and shall 
26.12 	receive the critical access dental reimbursement rate as described under subdivision 4, 
26.13 	paragraph (a).

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

26.15 	Sec. 23. Minnesota Statutes 2008, section 256B.76, subdivision 4, is amended to read:
26.16 		Subd. 4.Critical access dental providers.  (a) Effective for dental services 
26.17 	rendered on or after January 1, 2002, the commissioner shall increase reimbursements 
26.18 	to dentists and dental clinics deemed by the commissioner to be critical access dental 
26.19 	providers. For dental services rendered on or after July 1, 2007, the commissioner shall 
26.20 	increase reimbursement by 30 percent above the reimbursement rate that would otherwise 
26.21 	be paid to the critical access dental provider. The commissioner shall pay the health plan 
26.22 	companies managed care plans and county-based purchasing plans  in amounts sufficient 
26.23 	to reflect increased reimbursements to critical access dental providers as approved by the 
26.24 	commissioner. In determining which dentists and dental clinics shall be deemed critical 
26.25 	access dental providers, the commissioner shall review:
26.26 	(b) The commissioner shall designate the following dentists and dental clinics as 
26.27 	critical access dental providers:
26.28 	(1) the utilization rate in the service area in which the dentist or dental clinic operates 
26.29 	for dental services to patients covered by medical assistance, general assistance medical 
26.30 	care, or MinnesotaCare as their primary source of coverage nonprofit community clinics 
26.31 	that:
26.32 	(i) have nonprofit status in accordance with chapter 317A;
26.33 	(ii) have tax exempt status in accordance with the Internal Revenue Code, section 
26.34 	501(c)(3);
27.1 	(iii) are established to provide oral health services to patients who are low income, 
27.2 	uninsured, have special needs, and are underserved;
27.3 	(iv) have professional staff familiar with the cultural background of the clinic's 
27.4 	patients;
27.5 	(v) charge for services on a sliding fee scale designed to provide assistance to 
27.6 	low-income patients based on current poverty income guidelines and family size;
27.7 	(vi) do not restrict access or services because of a patient's financial limitations 
27.8 	or public assistance status; and
27.9 	(vii) have free care available as needed;
27.10 	(2) the level of services provided by the dentist or dental clinic to patients covered 
27.11 	by medical assistance, general assistance medical care, or MinnesotaCare as their primary 
27.12 	source of coverage federally qualified health centers, rural health clinics, and public 
27.13 	health clinics; and
27.14 	(3) whether the level of services provided by the dentist or dental clinic is critical 
27.15 	to maintaining adequate levels of patient access within the service area county owned 
27.16 	and operated hospital-based dental clinics;
27.17 	(4) a dental clinic or dental group owned and operated by a nonprofit corporation in 
27.18 	accordance with chapter 317A with more than 10,000 patient encounters per year with 
27.19 	patients who are uninsured or covered by medical assistance, general assistance medical 
27.20 	care, or MinnesotaCare; and
27.21 	(5) a dental clinic associated with an oral health or dental education program 
27.22 	operated by the University of Minnesota or an institution within the Minnesota State 
27.23 	Colleges and Universities system.
27.24 	In the absence of a critical access dental provider in a service area, (c) The 
27.25 	commissioner may designate a dentist or dental clinic as a critical access dental provider 
27.26 	if the dentist or dental clinic is willing to provide care to patients covered by medical 
27.27 	assistance, general assistance medical care, or MinnesotaCare at a level which significantly 
27.28 	increases access to dental care in the service area.

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

27.30 	Sec. 24. Minnesota Statutes 2009 Supplement, section 256B.766, is amended to read:
27.31 	256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.
27.32 	(a) Effective for services provided on or after July 1, 2009, total payments for 
27.33 	basic care services, shall be reduced by three percent, prior to third-party liability 
27.34 	and spenddown calculation. Effective for services provided on or after July 1, 2011, 
28.1 	payment rates shall be reduced an additional 1.5 percent for the medical assistance and 
28.2 	general assistance medical care programs. Payments made to managed care plans and 
28.3 	county-based purchasing plans shall be reduced for services provided on or after October 
28.4 	1, 2009 July 1, 2011, to reflect this additional reduction.
28.5 	(b) This section does not apply to physician and professional services, inpatient 
28.6 	hospital services, family planning services, mental health services, dental services, 
28.7 	prescription drugs, medical transportation, federally qualified health centers, rural health 
28.8 	centers, Indian health services, and Medicare cost-sharing.

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

28.10 	Sec. 25. Minnesota Statutes 2009 Supplement, section 256L.03, subdivision 5, is 
28.11 	amended to read:
28.12 		Subd. 5.Co-payments and coinsurance. (a) Except as provided in paragraphs (b) 
28.13 	and (c), the MinnesotaCare benefit plan shall include the following co-payments and 
28.14 	coinsurance requirements for all enrollees:
28.15 	(1) ten percent of the paid charges for inpatient hospital services for adult enrollees, 
28.16 	subject to an annual inpatient out-of-pocket maximum of $1,000 per individual;
28.17 	(2) $3 per prescription for adult enrollees;
28.18 	(3) $25 for eyeglasses for adult enrollees;
28.19 	(4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an 
28.20 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
28.21 	established illness, and which is delivered in an ambulatory setting by a physician or 
28.22 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
28.23 	audiologist, optician, or optometrist; and
28.24 	(5) $6 for nonemergency visits to a hospital-based emergency room for services 
28.25 	provided through December 31, 2010, and $3.50 effective January 1, 2011.
28.26 	(b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of 
28.27 	children under the age of 21.
28.28 	(c) Paragraph (a) does not apply to pregnant women and children under the age of 21.
28.29 	(d) Paragraph (a), clause (4), does not apply to mental health services.
28.30 	(e) Adult enrollees with family gross income that exceeds 200 percent of the federal 
28.31 	poverty guidelines or 215 percent of the federal poverty guidelines on or after July 1, 2009, 
28.32 	and who are not pregnant shall be financially responsible for the coinsurance amount, if 
28.33 	applicable, and amounts which exceed the $10,000 inpatient hospital benefit limit.
28.34 	(f) When a MinnesotaCare enrollee becomes a member of a prepaid health plan, 
28.35 	or changes from one prepaid health plan to another during a calendar year, any charges 
29.1 	submitted towards the $10,000 annual inpatient benefit limit, and any out-of-pocket 
29.2 	expenses incurred by the enrollee for inpatient services, that were submitted or incurred 
29.3 	prior to enrollment, or prior to the change in health plans, shall be disregarded.
29.4 	(g) MinnesotaCare payments to managed care plans or county-based purchasing 
29.5 	plans shall not be increased as a result of the reduction of the co-payments in paragraph 
29.6 	(a), clause (5), effective January 1, 2011.

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

29.8 	Sec. 26. Minnesota Statutes 2008, section 256L.12, subdivision 9, is amended to read:
29.9 		Subd. 9.Rate setting; performance withholds. (a) Rates will be prospective, 
29.10 	per capita, where possible. The commissioner may allow health plans to arrange for 
29.11 	inpatient hospital services on a risk or nonrisk basis. The commissioner shall consult with 
29.12 	an independent actuary to determine appropriate rates.
29.13 	(b) For services rendered on or after January 1, 2003, to December 31, 2003, the 
29.14 	commissioner shall withhold .5 percent of managed care plan payments under this section 
29.15 	pending completion of performance targets. The withheld funds must be returned no 
29.16 	sooner than July 1 and no later than July 31 of the following year if performance targets 
29.17 	in the contract are achieved. A managed care plan may include as admitted assets under 
29.18 	section 62D.044 any amount withheld under this paragraph that is reasonably expected 
29.19 	to be returned. 
29.20 	(c) For services rendered on or after January 1, 2004, the commissioner shall 
29.21 	withhold five percent of managed care plan payments and county-based purchasing 
29.22 	plan payments under this section pending completion of performance targets. Each 
29.23 	performance target must be quantifiable, objective, measurable, and reasonably attainable, 
29.24 	except in the case of a performance target based on a federal or state law or rule. Criteria 
29.25 	for assessment of each performance target must be outlined in writing prior to the 
29.26 	contract effective date. The managed care plan must demonstrate, to the commissioner's 
29.27 	satisfaction, that the data submitted regarding attainment of the performance target is 
29.28 	accurate. The commissioner shall periodically change the administrative measures used 
29.29 	as performance targets in order to improve plan performance across a broader range of 
29.30 	administrative services. The performance targets must include measurement of plan 
29.31 	efforts to contain spending on health care services and administrative activities. The 
29.32 	commissioner may adopt plan-specific performance targets that take into account factors 
29.33 	affecting only one plan, such as characteristics of the plan's enrollee population. The 
29.34 	withheld funds must be returned no sooner than July 1 and no later than July 31 of the 
29.35 	following calendar year if performance targets in the contract are achieved. A managed 
30.1 	care plan or a county-based purchasing plan under section 256B.692 may include as 
30.2 	admitted assets under section 62D.044 any amount withheld under this paragraph that is 
30.3 	reasonably expected to be returned.
30.4 	(c) For services rendered on or after January 1, 2011, the commissioner shall 
30.5 	withhold an additional three percent of managed care plan or county-based purchasing 
30.6 	plan payments under this section. The withheld funds must be returned no sooner than 
30.7 	July 1 and no later than July 31 of the following calendar year. The return of the withhold 
30.8 	under this paragraph is not subject to the requirements of paragraph (b).
30.9 	(d) Effective for services rendered on or after January 1, 2011, the commissioner 
30.10 	shall include as part of the performance targets described in paragraph (b) a reduction in 
30.11 	the plan's emergency room utilization rate for state health care program enrollees by a 
30.12 	measurable rate of five percent from the plan's utilization rate for the previous calendar 
30.13 	year.
30.14 	The withheld funds must be returned no sooner than July 1 and no later than July 
30.15 	31 of the following calendar year if the managed care plan or county-based purchasing 
30.16 	plan demonstrates to the satisfaction of the commissioner that a reduction in the utilization 
30.17 	rate was achieved.
30.18 	The withhold described in this paragraph shall continue for each consecutive 
30.19 	contract period until the plan's emergency room utilization rate for state health care 
30.20 	program enrollees is reduced by 25 percent of the plan's emergency room utilization rate 
30.21 	for state health care program enrollees for calendar year 2009.
30.22 	(e) A managed care plan or a county-based purchasing plan under section 256B.692 
30.23 	may include as admitted assets under section 62D.044 any amount withheld under this 
30.24 	section that is reasonably expected to be returned.

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

30.26 	Sec. 27. Minnesota Statutes 2008, section 256L.12, is amended by adding a subdivision 
30.27 	to read:
30.28 		Subd. 9c.Rate setting; increase effective October 1, 2010. For services 
30.29 	rendered on or after October 1, 2010, the total payment made to managed care plans and 
30.30 	county-based purchasing plans under MinnesotaCare for families with children shall be 
30.31 	increased by 1.28 percent.

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

30.33 	Sec. 28. Laws 2009, chapter 79, article 5, section 75, subdivision 1, is amended to read:
31.1 		Subdivision 1.Medical assistance coverage. The commissioner of human services 
31.2 	shall establish a demonstration project to provide additional medical assistance coverage 
31.3 	for a maximum of 200 American Indian children in Minneapolis, St. Paul, and Duluth 
31.4 	who are burdened by health disparities associated with the cumulative health impact 
31.5 	of toxic environmental exposures. Under this demonstration project, the additional 
31.6 	medical assistance coverage for this population must include, but is not limited to, home 
31.7 	environmental assessments for triggers of asthma, and in-home asthma education on the 
31.8 	proper medical management of asthma by a certified asthma educator or public health 
31.9 	nurse with asthma management training, and is limited to two visits per child. The first 
31.10 	home visit payment rate must be based on a rate commensurate with a first-time visit rate 
31.11 	and follow-up visit rate. Coverage also includes the following durable medical equipment: 
31.12 	high efficiency particulate air (HEPA) cleaners, HEPA vacuum cleaners, allergy bed and 
31.13 	pillow encasements, high filtration filters for forced air gas furnaces, and dehumidifiers 
31.14 	with medical tubing to connect the appliance to a floor drain, if the listed item is medically 
31.15 	necessaryuseful to reduce asthma symptoms. Provision of these items of durable medical 
31.16 	equipment must be preceded by a home environmental assessment for triggers of asthma 
31.17 	and in-home asthma education on the proper medical management of asthma by a Certified 
31.18 	Asthma Educator or public health nurse with asthma management training.

31.19 	Sec. 29. Laws 2009, chapter 79, article 5, section 78, subdivision 5, is amended to read:
31.20 		Subd. 5.Expiration. This section, with the exception of subdivision 4, expires 
31.21 	December 31, 2010 May 31, 2011. Subdivision 4 expires November 30, 2011.

31.22 	Sec. 30. Laws 2009, chapter 79, article 13, section 3, subdivision 6, is amended to read:

31.23	Subd. 6.Basic Health Care Grants
 					
31.24 	The amounts that may be spent from this 
31.25 	appropriation for each purpose are as follows:

31.26	(a) MinnesotaCare Grants
		391,915,000
		485,448,000
	
31.27 	This appropriation is from the health care 
31.28 	access fund.

31.29
31.30	(b) MA Basic Health Care Grants - Families 
and Children
		751,988,000
		973,088,000
	
31.31 	Medical Education Research Costs 
31.32 	(MERC). Of these funds, the commissioner 
31.33 	of human services shall transfer $38,000,000 
32.1 	in fiscal year 2010 to the medical education 
32.2 	research fund. These funds must restore the 
32.3 	fiscal year 2009 unallotment of the transfers 
32.4 	under Minnesota Statutes, section 256B.69, 
32.5 	subdivision 5c, paragraph (a), for the July 1, 
32.6 	2008, through June 30, 2009, period.
32.7 	Newborn Screening Fee. Of the general 
32.8 	fund appropriation, $34,000 in fiscal year 
32.9 	2011 is to the commissioner for the hospital 
32.10 	reimbursement increase described under 
32.11 	Minnesota Statutes, section 256.969, 
32.12 	subdivision 28.
32.13 	Local Share Payment Modification 
32.14 	Required for ARRA Compliance.
32.15 	Effective from July 1, 2009, to December 
32.16 	31, 2010, Hennepin County's monthly 
32.17 	contribution to the nonfederal share of 
32.18 	medical assistance costs must be reduced 
32.19 	to the percentage required on September 
32.20 	1, 2008, to meet federal requirements for 
32.21 	enhanced federal match under the American 
32.22 	Reinvestment and Recovery Act (ARRA) 
32.23 	of 2009. Notwithstanding the requirements 
32.24 	of Minnesota Statutes, section 256B.19, 
32.25 	subdivision 1c, paragraph (d), for the period 
32.26 	beginning July 1, 2009, to December 31, 
32.27 	2010, Hennepin County's monthly payment 
32.28 	under that provision is reduced to $434,688.
32.29 	Capitation Payments. Effective from 
32.30 	July 1, 2009, to December 31, 2010, 
32.31 	notwithstanding the provisions of Minnesota 
32.32 	Statutes 2008, section 256B.19, subdivision 
32.33 	1c, paragraph (c), the commissioner shall 
32.34 	increase capitation payments made to the 
32.35 	Metropolitan Health Plan under Minnesota 
33.1 	Statutes 2008, section 256B.69, by 
33.2 	$6,800,000 to recognize higher than average 
33.3 	medical education costs. The increased 
33.4 	amount includes federal matching funds.
33.5 	Use of Savings. Any savings derived 
33.6 	from implementation of the prohibition in 
33.7 	Minnesota Statutes, section 256B.032, on the 
33.8 	enrollment of low-quality, high-cost health 
33.9 	care providers as vendors of state health care 
33.10 	program services shall be used to offset on a 
33.11 	pro rata basis the reimbursement reductions 
33.12 	for basic care services in Minnesota Statutes, 
33.13 	section 256B.766.

33.14
33.15	(c) MA Basic Health Care Grants - Elderly and 
Disabled
		970,183,000
		1,142,310,000
	
33.16 	Minnesota Disability Health Options. 
33.17 	Notwithstanding Minnesota Statutes, section 
33.18 	256B.69, subdivision 5a, paragraph (b), for 
33.19 	the period beginning July 1, 2009, to June 
33.20 	30, 2011, the monthly enrollment of persons 
33.21 	receiving home and community-based 
33.22 	waivered services under Minnesota 
33.23 	Disability Health Options shall not exceed 
33.24 	1,000. If the budget neutrality provision 
33.25 	in Minnesota Statutes, section 256B.69, 
33.26 	subdivision 23, paragraph (f), is reached 
33.27 	prior to June 30, 2013, the commissioner may 
33.28 	waive this monthly enrollment requirement.
33.29 	Hospital Fee-for-Service Payment Delay.
33.30 	Payments from the Medicaid Management 
33.31 	Information System that would otherwise 
33.32 	have been made for inpatient hospital 
33.33 	services for Minnesota health care program 
33.34 	enrollees must be delayed as follows: for 
33.35 	fiscal year 2011, payments in the month of 
33.36 	June equal to $15,937,000 must be included 
34.1 	in the first payment of fiscal year 2012 and 
34.2 	for fiscal year 2013, payments in the month 
34.3 	of June equal to $6,666,000 must be included 
34.4 	in the first payment of fiscal year 2014. The 
34.5 	provisions of Minnesota Statutes, section 
34.6 	16A.124, do not apply to these delayed 
34.7 	payments. Notwithstanding any contrary 
34.8 	provision in this article, this paragraph 
34.9 	expires December 31, 2014.
34.10 	Nonhospital Fee-for-Service Payment 
34.11 	Delay. Payments from the Medicaid 
34.12 	Management Information System that would 
34.13 	otherwise have been made for nonhospital 
34.14 	acute care services for Minnesota health 
34.15 	care program enrollees must be delayed as 
34.16 	follows: payments in the month of June equal 
34.17 	to $23,438,000 for fiscal year 2011 must be 
34.18 	included in the first payment for fiscal year 
34.19 	2012, and payments in the month of June 
34.20 	equal to $27,156,000 for fiscal year 2013 
34.21 	must be included in the first payment for 
34.22 	fiscal year 2014. This payment delay must 
34.23 	not include nursing facilities, intermediate 
34.24 	care facilities for persons with developmental 
34.25 	disabilities, home and community-based 
34.26 	services, prepaid health plans, personal care 
34.27 	provider organizations, and home health 
34.28 	agencies. The provisions of Minnesota 
34.29 	Statutes, section 16A.124, do not apply to 
34.30 	these delayed payments. Notwithstanding 
34.31 	any contrary provision in this article, this 
34.32 	paragraph expires December 31, 2014.

34.33	(d) General Assistance Medical Care Grants
		345,223,000
		381,081,000
	
34.34 	* (The preceding text "381,081,000" was indicated as vetoed by the governor. It 
34.35 	was reconsidered and not approved by the legislature, May 17, 2009.)

35.1	(e) Other Health Care Grants

35.2	Appropriations by Fund
	
35.3	General
	295,000
	295,000
	
35.4
35.5	Health Care Access
	23,533,000
	7,080,000
 5,252,000
	
35.6 	Base Adjustment. The health care access 
35.7 	fund base is reduced to $190,000 in each of 
35.8 	fiscal years 2012 and 2013.

35.9 	Sec. 31. PREPAID HEALTH PLAN RATES.
 35.10 	In negotiating the prepaid health plan contract rates for services rendered on or 
35.11 	after January 1, 2011, the commissioner of human services shall take into consideration 
35.12 	and the rates shall reflect the anticipated savings in the medical assistance program due 
35.13 	to extending medical assistance coverage to services provided in licensed birth centers, 
35.14 	the anticipated use of these services within the medical assistance population, and the 
35.15 	reduced medical assistance costs associated with the use of birth centers for normal, 
35.16 	low-risk deliveries.

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

35.18 	Sec. 32. SPECIAL TRANSPORTATION SERVICES.
 35.19 	The commissioner of human services shall ensure that effective October 1, 2010, to 
35.20 	avoid conflicts of interest, all contracts for level of need assessments under Minnesota 
35.21 	Statutes, section 256B.04, subdivision 14a, require that the contractor have no financial 
35.22 	interest in the provision of medical transportation services other than performing level of 
35.23 	need assessments.

35.24 	Sec. 33. STATE PLAN AMENDMENT; FEDERAL APPROVAL.
 35.25 	(a) The commissioner of human services shall submit a Medicaid state plan 
35.26 	amendment to receive federal fund participation for adults without children whose income 
35.27 	is equal to or less than 75 percent of federal poverty guidelines in accordance with the 
35.28 	Patient Protection and Affordable Care Act, Public Law 111-148, or the Health Care and 
35.29 	Education Reconciliation Act of 2010, Public Law 111-152. The effective date of the 
35.30 	state plan amendment shall be June 1, 2010.
36.1 	(b) The commissioner of human services shall submit an amendment to the 
36.2 	MinnesotaCare health care reform waiver to include in the waiver single adults and 
36.3 	households without children.

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

36.5 	Sec. 34. UPPER PAYMENT LIMIT REPORT.
 36.6 	Each January 15, beginning in 2011, the commissioner of human services shall 
36.7 	report the following information to the chairs of the house of representatives and senate 
36.8 	finance committees and divisions with responsibility for human services appropriations:
36.9 	(1) the estimated room within the Medicare hospital upper payment limit for the 
36.10 	federal year beginning on October 1 of the year the report is made;
36.11 	(2) the amount of a rate increase under Minnesota Statutes, section 256.969, 
36.12 	subdivision 3a, paragraph (i), that would increase medical assistance hospital spending 
36.13 	to the upper payment limit; and
36.14 	(3) the amount of a surcharge increase under Minnesota Statutes, section 256.9657, 
36.15 	subdivision 2, needed to generate the state share of the potential rate increase under 
36.16 	clause (2).

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

36.18 	Sec. 35. REVISOR'S INSTRUCTION.
 36.19 	The revisor of statutes shall edit Minnesota Statutes and Minnesota Rules to remove 
36.20 	references to the general assistance medical care program and references to Minnesota 
36.21 	Statutes, section 256D.03, subdivision 3, or Minnesota Statutes, chapter 256D, as it 
36.22 	pertains to general assistance medical care and make other changes as may be necessary 
36.23 	to remove references to the general assistance medical care program. The revisor may 
36.24 	consult with the Department of Human Services when making editing decisions on the 
36.25 	removal of these references.

36.26 	Sec. 36.  REPEALER.
 36.27 	(a) Minnesota Statutes 2008, section 256D.03, subdivisions 3, 3a, 5, 6, 7, and 8,
36.28 	are repealed June 1, 2010.
36.29 	(b) Laws 2010, chapter 200, article 1, sections 12; 18; and 19, are repealed June 
36.30 	1, 2010.

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

37.1 	ARTICLE 2
37.2 	CONTINUING CARE

37.3 	Section 1. Minnesota Statutes 2008, section 144D.03, subdivision 2, is amended to 
37.4 	read:
37.5 		Subd. 2.Registration information. The establishment shall provide the following 
37.6 	information to the commissioner in order to be registered:
37.7 	(1) the business name, street address, and mailing address of the establishment;
37.8 	(2) the name and mailing address of the owner or owners of the establishment and, if 
37.9 	the owner or owners are not natural persons, identification of the type of business entity 
37.10 	of the owner or owners, and the names and addresses of the officers and members of the 
37.11 	governing body, or comparable persons for partnerships, limited liability corporations, or 
37.12 	other types of business organizations of the owner or owners;
37.13 	(3) the name and mailing address of the managing agent, whether through 
37.14 	management agreement or lease agreement, of the establishment, if different from the 
37.15 	owner or owners, and the name of the on-site manager, if any;
37.16 	(4) verification that the establishment has entered into  a housing with services 
37.17 	contract, as required in section  144D.04, with each resident or resident's representative; 
37.18 	(5) verification that the establishment is complying with the requirements of section 
37.19 	325F.72, if applicable; 
37.20 	(6) the name and address of at least one natural person who shall be responsible 
37.21 	for dealing with the commissioner on all matters provided for in sections  144D.01 to  
37.22 	144D.06, and on whom personal service of all notices and orders shall be made, and who 
37.23 	shall be authorized to accept service on behalf of the owner or owners and the managing 
37.24 	agent, if any; and
37.25 	(7) the signature of the authorized representative of the owner or owners or, if 
37.26 	the owner or owners are not natural persons, signatures of at least two authorized 
37.27 	representatives of each owner, one of which shall be an officer of the owner; and
37.28 	(8) whether services are included in the base rate to be paid by the resident.
37.29 	Personal service on the person identified under clause (6) by the owner or owners in 
37.30 	the registration shall be considered service on the owner or owners, and it shall not be a 
37.31 	defense to any action that personal service was not made on each individual or entity. The 
37.32 	designation of one or more individuals under this subdivision shall not affect the legal 
37.33 	responsibility of the owner or owners under sections  144D.01 to  144D.06. 

38.1 	Sec. 2. Minnesota Statutes 2008, section 144D.03, is amended by adding a subdivision 
38.2 	to read:
38.3 		Subd. 3.Certificate of transitional consultation. A housing with services 
38.4 	establishment shall not execute a contract or allow a prospective resident to move in until 
38.5 	the establishment has received certification from the Senior LinkAge Line that transition 
38.6 	to housing with services consultation under section 256B.0911, subdivision 3c, has been 
38.7 	completed. The housing with services establishment shall maintain copies of contracts 
38.8 	and certificates for audit for a period of three years.

38.9 	Sec. 3. Minnesota Statutes 2008, section 144D.04, subdivision 2, is amended to read:
38.10 		Subd. 2.Contents of contract.  A housing with services contract, which need not be 
38.11 	entitled as such to comply with this section, shall include at least the following elements 
38.12 	in itself or through supporting documents or attachments:
38.13 	(1) the name, street address, and mailing address of the establishment;
38.14 	(2) the name and mailing address of the owner or owners of the establishment and, if 
38.15 	the owner or owners is not a natural person, identification of the type of business entity 
38.16 	of the owner or owners;
38.17 	(3) the name and mailing address of the managing agent, through management 
38.18 	agreement or lease agreement, of the establishment, if different from the owner or owners;
38.19 	(4) the name and address of at least one natural person who is authorized to accept 
38.20 	service of process on behalf of the owner or owners and managing agent;
38.21 	(5) a statement describing the registration and licensure status of the establishment 
38.22 	and any provider providing health-related or supportive services under an arrangement 
38.23 	with the establishment;
38.24 	(6) the term of the contract;
38.25 	(7) a description of the services to be provided to the resident in the base rate to be 
38.26 	paid by resident, including a delineation of the portion of the base rate that constitutes rent 
38.27 	and a delineation of charges for each service included in the base rate;
38.28 	(8) a description of any additional services, including home care services, available 
38.29 	for an additional fee from the establishment directly or through arrangements with the 
38.30 	establishment, and a schedule of fees charged for these services;
38.31 	(9) a description of the process through which the contract may be modified, 
38.32 	amended, or terminated;
38.33 	(10) a description of the establishment's complaint resolution process available 
38.34 	to residents including the toll-free complaint line for the Office of Ombudsman for 
38.35 	Long-Term Care;
39.1 	(11) the resident's designated representative, if any;
39.2 	(12) the establishment's referral procedures if the contract is terminated;
39.3 	(13) requirements of residency used by the establishment to determine who may 
39.4 	reside or continue to reside in the  housing with services establishment;
39.5 	(14) billing and payment procedures and requirements;
39.6 	(15) a statement regarding the ability of residents to receive services from service 
39.7 	providers with whom the establishment does not have an arrangement; 
39.8 	(16) a statement regarding the availability of public funds for payment for residence 
39.9 	or services in the establishment; and
39.10 	(17) a statement regarding the availability of and contact information for 
39.11 	long-term care consultation services under section 256B.0911 in the county in which the 
39.12 	establishment is located.

39.13 	Sec. 4. [144D.08] UNIFORM CONSUMER INFORMATION GUIDE.
39.14 	All housing with services establishments shall make available to all prospective 
39.15 	and current residents information consistent with the uniform format and the required 
39.16 	components adopted by the commissioner under section 144G.06.

39.17 	Sec. 5. [144D.09] TERMINATION OF LEASE.
39.18 	The housing with services establishment shall include with notice of termination 
39.19 	of lease information about how to contact the ombudsman for long-term care, including 
39.20 	the address and phone number along with a statement of how to request problem-solving 
39.21 	assistance.

39.22 	Sec. 6. Minnesota Statutes 2008, section 144G.06, is amended to read:
39.23 	144G.06 UNIFORM CONSUMER INFORMATION GUIDE.
39.24 	(a) The commissioner of health shall establish an advisory committee consisting 
39.25 	of representatives of consumers, providers, county and state officials, and other 
39.26 	groups the commissioner considers appropriate. The advisory committee shall present 
39.27 	recommendations to the commissioner on:
39.28 	(1) a format for a guide to be used by individual providers of assisted living, as 
39.29 	defined in section 144G.01, that includes information about services offered by that 
39.30 	provider, which services may be covered by Medicare, service costs, and other relevant 
39.31 	provider-specific information, as well as a statement of philosophy and values associated 
39.32 	with assisted living, presented in uniform categories that facilitate comparison with guides 
39.33 	issued by other providers; and
40.1 	(2) requirements for informing assisted living clients, as defined in section 144G.01, 
40.2 	of their applicable legal rights.
40.3 	(b) The commissioner, after reviewing the recommendations of the advisory 
40.4 	committee, shall adopt a uniform format for the guide to be used by individual providers, 
40.5 	and the required components of materials to be used by providers to inform assisted 
40.6 	living clients of their legal rights, and shall make the uniform format and the required 
40.7 	components available to assisted living providers.

40.8 	Sec. 7. Minnesota Statutes 2008, section 256.9657, subdivision 1, is amended to read:
40.9 		Subdivision 1.Nursing home license surcharge. (a) Effective July 1, 1993, 
40.10 	each non-state-operated nursing home licensed under chapter 144A shall pay to the 
40.11 	commissioner an annual surcharge according to the schedule in subdivision 4. The 
40.12 	surcharge shall be calculated as $620 per licensed bed. If the number of licensed beds 
40.13 	is reduced changed, the surcharge shall be based on the number of remaining licensed 
40.14 	beds the second month following the receipt of timely notice by the commissioner of 
40.15 	human services that  the number of beds have been delicensed has been changed. The 
40.16 	nursing home must notify the commissioner of health in writing when  the number of beds 
40.17 	are delicensed is changed. The commissioner of health must notify the commissioner 
40.18 	of human services within ten working days after receiving written notification. If the 
40.19 	notification is received by the commissioner of human services by the 15th third  of the 
40.20 	month, the invoice for the second following month must be reduced changed  to recognize 
40.21 	the delicensing change in the number  of beds. Beds on layaway status continue to be 
40.22 	subject to the surcharge. The commissioner of human services must acknowledge a 
40.23 	medical care surcharge appeal within 30 days of receipt of the written appeal from the 
40.24 	provider.
40.25 	(b) Effective July 1, 1994, the surcharge in paragraph (a) shall be increased to $625.
40.26 	(c) Effective August 15, 2002, the surcharge under paragraph (b) shall be increased 
40.27 	to $990.
40.28 	(d) Effective July 15, 2003, the surcharge under paragraph (c) shall be increased 
40.29 	to $2,815.
40.30 	(e) Effective July 15, 2010, the surcharge under paragraph (d) shall be increased 
40.31 	to $3,400.
40.32 	(f) The commissioner may reduce, and may subsequently restore, the surcharge under 
40.33 	paragraph (d) (e)  based on the commissioner's determination of a permissible surcharge.
40.34 	(f) (g)  Between April 1, 2002, and August 15, 2004 July 1, 2010, and June 30, 
40.35 	2011, a facility governed by this subdivision may elect to assume full participation in 
41.1 	the medical assistance program by agreeing to comply with all of the requirements of 
41.2 	the medical assistance program, including the rate equalization law in section 256B.48, 
41.3 	subdivision 1, paragraph (a), and all other requirements established in law or rule, and 
41.4 	to begin intake of new medical assistance recipients. Rates will be determined under 
41.5 	Minnesota Rules, parts 9549.0010 to 9549.0080. Notwithstanding section 256B.431, 
41.6 	subdivision 27, paragraph (i), rate calculations will be subject to limits as prescribed 
41.7 	in rule and law. Other than the adjustments in sections 256B.431, subdivisions 30 and 
41.8 	32; 256B.437, subdivision 3, paragraph (b), Minnesota Rules, part 9549.0057, and any 
41.9 	other applicable legislation enacted prior to the finalization of rates, facilities assuming 
41.10 	full participation in medical assistance under this paragraph are not eligible for any rate 
41.11 	adjustments until the July 1 following their settle-up period. 

41.12 	Sec. 8. Minnesota Statutes 2008, section 256.9657, subdivision 3a, is amended to read:
41.13 		Subd. 3a.ICF/MR license surcharge. (a) Effective July 1, 2003, each 
41.14 	non-state-operated facility as defined under section 256B.501, subdivision 1, shall pay 
41.15 	to the commissioner an annual surcharge according to the schedule in subdivision 4, 
41.16 	paragraph (d). The annual surcharge shall be $1,040 per licensed bed. If the number of 
41.17 	licensed beds is reduced, the surcharge shall be based on the number of remaining licensed 
41.18 	beds the second month following the receipt of timely notice by the commissioner of 
41.19 	human services that beds have been delicensed. The facility must notify the commissioner 
41.20 	of health in writing when beds are delicensed. The commissioner of health must notify 
41.21 	the commissioner of human services within ten working days after receiving written 
41.22 	notification. If the notification is received by the commissioner of human services by 
41.23 	the 15th of the month, the invoice for the second following month must be reduced to 
41.24 	recognize the delicensing of beds. The commissioner may reduce, and may subsequently 
41.25 	restore, the surcharge under this subdivision based on the commissioner's determination of 
41.26 	a permissible surcharge. 
41.27 	(b) Effective July 1, 2010, the surcharge under paragraph (a) is increased to $4,037 
41.28 	per licensed bed.

41.29 	Sec. 9. Minnesota Statutes 2009 Supplement, section 256.975, subdivision 7, is 
41.30 	amended to read:
41.31 		Subd. 7.Consumer information and assistance and long-term care options 
41.32 	counseling; Senior LinkAge Line. (a) The Minnesota Board on Aging shall operate a 
41.33 	statewide service to aid older Minnesotans and their families in making informed choices 
41.34 	about long-term care options and health care benefits. Language services to persons with 
42.1 	limited English language skills may be made available. The service, known as Senior 
42.2 	LinkAge Line, must be available during business hours through a statewide toll-free 
42.3 	number and must also be available through the Internet.
42.4 	(b) The service must provide long-term care options counseling by assisting older 
42.5 	adults, caregivers, and providers in accessing information and options counseling about 
42.6 	choices in long-term care services that are purchased through private providers or available 
42.7 	through public options. The service must:
42.8 	(1) develop a comprehensive database that includes detailed listings in both 
42.9 	consumer- and provider-oriented formats;
42.10 	(2) make the database accessible on the Internet and through other telecommunication 
42.11 	and media-related tools;
42.12 	(3) link callers to interactive long-term care screening tools and make these tools 
42.13 	available through the Internet by integrating the tools with the database;
42.14 	(4) develop community education materials with a focus on planning for long-term 
42.15 	care and evaluating independent living, housing, and service options;
42.16 	(5) conduct an outreach campaign to assist older adults and their caregivers in 
42.17 	finding information on the Internet and through other means of communication;
42.18 	(6) implement a messaging system for overflow callers and respond to these callers 
42.19 	by the next business day;
42.20 	(7) link callers with county human services and other providers to receive more 
42.21 	in-depth assistance and consultation related to long-term care options;
42.22 	(8) link callers with quality profiles for nursing facilities and other providers 
42.23 	developed by the commissioner of health;
42.24 	(9) incorporate information about the availability of housing options, as well as 
42.25 	registered housing with services and consumer rights within the MinnesotaHelp.info 
42.26 	network long-term care database to facilitate consumer comparison of services and costs 
42.27 	among housing with services establishments and with other in-home services and to 
42.28 	support financial self-sufficiency as long as possible. Housing with services establishments 
42.29 	and their arranged home care providers shall provide information to the commissioner of 
42.30 	human services that is consistent with information required by the commissioner of health 
42.31 	under section 144G.06, the Uniform Consumer Information Guide that will facilitate price 
42.32 	comparisons, including delineation of charges for rent and for services available. The 
42.33 	commissioners of health and human services shall align the data elements required by 
42.34 	section 144G.06, the Uniform Consumer Information Guide, and this section to provide 
42.35 	consumers standardized information and ease of comparison of long-term care options. 
43.1 	The commissioner of human services shall provide the data to the Minnesota Board on 
43.2 	Aging for inclusion in the MinnesotaHelp.info network long-term care database;
43.3 	(10) provide long-term care options counseling. Long-term care options counselors 
43.4 	shall:
43.5 	(i) for individuals not eligible for case management under a public program or public 
43.6 	funding source, provide interactive decision support under which consumers, family 
43.7 	members, or other helpers are supported in their deliberations to determine appropriate 
43.8 	long-term care choices in the context of the consumer's needs, preferences, values, and 
43.9 	individual circumstances, including implementing a community support plan;
43.10 	(ii) provide Web-based educational information and collateral written materials to 
43.11 	familiarize consumers, family members, or other helpers with the long-term care basics, 
43.12 	issues to be considered, and the range of options available in the community;
43.13 	(iii) provide long-term care futures planning, which means providing assistance to 
43.14 	individuals who anticipate having long-term care needs to develop a plan for the more 
43.15 	distant future; and
43.16 	(iv) provide expertise in benefits and financing options for long-term care, including 
43.17 	Medicare, long-term care insurance, tax or employer-based incentives, reverse mortgages, 
43.18 	private pay options, and ways to access low or no-cost services or benefits through 
43.19 	volunteer-based or charitable programs; and
43.20 	(11) using risk management and support planning protocols, provide long-term care 
43.21 	options counseling to current residents of nursing homes deemed appropriate for discharge 
43.22 	by the commissioner. In order to meet this requirement, the commissioner shall provide 
43.23 	designated Senior LinkAge Line contact centers with a list of nursing home residents 
43.24 	appropriate for discharge planning via a secure Web portal. Senior LinkAge Line shall 
43.25 	provide these residents, if they indicate a preference to receive long-term care options 
43.26 	counseling, with initial assessment, review of risk factors, independent living support 
43.27 	consultation, or referral to:
43.28 	(i) long-term care consultation services under section 256B.0911;
43.29 	(ii) designated care coordinators of contracted entities under section 256B.035 for 
43.30 	persons who are enrolled in a managed care plan; or
43.31 	(iii) the long-term care consultation team for those who are appropriate for relocation 
43.32 	service coordination due to high-risk factors or psychological or physical disability.

43.33 	Sec. 10. Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 11, 
43.34 	is amended to read:
44.1 		Subd. 11.Personal care assistant; requirements. (a) A personal care assistant 
44.2 	must meet the following requirements:
44.3 	(1) be at least 18 years of age with the exception of persons who are 16 or 17 years 
44.4 	of age with these additional requirements:
44.5 	(i) supervision by a qualified professional every 60 days; and
44.6 	(ii) employment by only one personal care assistance provider agency responsible 
44.7 	for compliance with current labor laws;
44.8 	(2) be employed by a personal care assistance provider agency;
44.9 	(3) enroll with the department as a personal care assistant after clearing a background 
44.10 	study. Before a personal care assistant provides services, the personal care assistance 
44.11 	provider agency must initiate a background study on the personal care assistant under 
44.12 	chapter 245C, and the personal care assistance provider agency must have received a 
44.13 	notice from the commissioner that the personal care assistant is:
44.14 	(i) not disqualified under section 245C.14; or
44.15 	(ii) is disqualified, but the personal care assistant has received a set aside of the 
44.16 	disqualification under section 245C.22;
44.17 	(4) be able to effectively communicate with the recipient and personal care 
44.18 	assistance provider agency;
44.19 	(5) be able to provide covered personal care assistance services according to the 
44.20 	recipient's personal care assistance care plan, respond appropriately to recipient needs, 
44.21 	and report changes in the recipient's condition to the supervising qualified professional 
44.22 	or physician;
44.23 	(6) not be a consumer of personal care assistance services;
44.24 	(7) maintain daily written records including, but not limited to, time sheets under 
44.25 	subdivision 12;
44.26 	(8) effective January 1, 2010, complete standardized training as determined by the 
44.27 	commissioner before completing enrollment. Personal care assistant training must include 
44.28 	successful completion of the following training components: basic first aid, vulnerable 
44.29 	adult, child maltreatment, OSHA universal precautions, basic roles and responsibilities of 
44.30 	personal care assistants including information about assistance with lifting and transfers 
44.31 	for recipients, emergency preparedness, orientation to positive behavioral practices, fraud 
44.32 	issues, and completion of time sheets. Upon completion of the training components, 
44.33 	the personal care assistant must demonstrate the competency to provide assistance to 
44.34 	recipients;
44.35 	(9) complete training and orientation on the needs of the recipient within the first 
44.36 	seven days after the services begin; and
45.1 	(10) be limited to providing and being paid for up to 310 275  hours per month of 
45.2 	personal care assistance services regardless of the number of recipients being served or the 
45.3 	number of personal care assistance provider agencies enrolled with.
45.4 	(b) A legal guardian may be a personal care assistant if the guardian is not being paid 
45.5 	for the guardian services and meets the criteria for personal care assistants in paragraph (a).
45.6 	(c) Effective January 1, 2010, persons who do not qualify as a personal care assistant 
45.7 	include parents and stepparents of minors, spouses, paid legal guardians, family foster 
45.8 	care providers, except as otherwise allowed in section 256B.0625, subdivision 19a, or 
45.9 	staff of a residential setting.

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

45.11 	Sec. 11. Minnesota Statutes 2009 Supplement, section 256B.0911, subdivision 3c, 
45.12 	is amended to read:
45.13 		Subd. 3c.Transition to housing with services. (a) Housing with services 
45.14 	establishments offering or providing assisted living under chapter 144G shall inform 
45.15 	all prospective residents of the availability of and contact information for transitional 
45.16 	consultation services under this subdivision prior to executing a lease or contract with the 
45.17 	prospective resident requirement to contact the Senior LinkAge Line for long-term care 
45.18 	options counseling and transitional consultation. The Senior LinkAge Line shall provide 
45.19 	a certificate to the prospective resident and also send a copy of the certificate to the 
45.20 	housing with services establishment that the prospective resident chooses, verifying that 
45.21 	consultation has been provided. The housing with services establishment shall not execute 
45.22 	a contract or allow a prospective resident to move in until the establishment has received 
45.23 	certification from the Senior LinkAge Line. The housing with services establishment shall 
45.24 	maintain copies of contracts and certificates for audit for a period of three years. The 
45.25 	purpose of transitional long-term care consultation is to support persons with current 
45.26 	or anticipated long-term care needs in making informed choices among options that 
45.27 	include the most cost-effective and least restrictive settings, and to delay spenddown to 
45.28 	eligibility for publicly funded programs by connecting people to alternative services in 
45.29 	their homes before transition to housing with services. Regardless of the consultation, 
45.30 	prospective residents maintain the right to choose housing with services or assisted living 
45.31 	if that option is their preference.
45.32 	(b) Transitional consultation services are provided as determined by the 
45.33 	commissioner of human services in partnership with county long-term care consultation 
45.34 	units, and the Area Agencies on Aging under section 144D.03, subdivision 3, and 
45.35 	are a combination of telephone-based and in-person assistance provided under models 
46.1 	developed by the commissioner. The consultation shall be performed in a manner that 
46.2 	provides objective and complete information. Transitional consultation must be provided 
46.3 	within five working days of the request of the prospective resident as follows:
46.4 	(1) the consultation must be provided by a qualified professional as determined by 
46.5 	the commissioner;
46.6 	(2) the consultation must include a review of the prospective resident's reasons for 
46.7 	considering assisted living, the prospective resident's personal goals, a discussion of the 
46.8 	prospective resident's immediate and projected long-term care needs, and alternative 
46.9 	community services or assisted living settings that may meet the prospective resident's 
46.10 	needs; and
46.11 	(3) the prospective resident shall be informed of the availability of long-term care 
46.12 	consultation services described in subdivision 3a that are available at no charge to the 
46.13 	prospective resident to assist the prospective resident in assessment and planning to meet 
46.14 	the prospective resident's long-term care needs. The Senior LinkAge Line and long-term 
46.15 	care consultation team shall give the highest priority to referrals who are at highest risk of 
46.16 	nursing facility placement or as needed for determining eligibility; and
46.17 	(4) a prospective resident does not include a person moving from the community 
46.18 	to housing with services during nonworking hours when:
46.19 	(i) the move is based on a recent precipitating event that precludes the person from 
46.20 	living safely in the community, such as sustaining an injury or the caregiver's inability to 
46.21 	provide needed care; and
46.22 	(ii) the Senior LinkAge Line is contacted on the first working day following the 
46.23 	nonworking day move to the registered housing with services.

46.24 	Sec. 12. Minnesota Statutes 2008, section 256B.0915, is amended by adding a 
46.25 	subdivision to read:
46.26 		Subd. 3i.Rate reduction for customized living and 24-hour customized living 
46.27 	services. (a) Effective July 1, 2010, the commissioner shall reduce service component 
46.28 	rates and service rate limits for customized living services and 24-hour customized living 
46.29 	services, from the rates in effect on June 30, 2010, by five percent.
46.30 	(b) To implement the rate reductions in this subdivision, capitation rates paid by the 
46.31 	commissioner to managed care organizations under section 256B.69 shall reflect a ten 
46.32 	percent reduction for the specified services for the period January 1, 2011, to June 30, 
46.33 	2011, and a five percent reduction for those services on and after July 1, 2011.

47.1 	Sec. 13. Minnesota Statutes 2008, section 256B.441, subdivision 53, is amended to 
47.2 	read:
47.3 		Subd. 53.Calculation of payment rate for external fixed costs. The commissioner 
47.4 	shall calculate a payment rate for external fixed costs.
47.5 	(a) For a facility licensed as a nursing home, the portion related to section 256.9657 
47.6 	shall be equal to $8.86 $10.86. For a facility licensed as both a nursing home and a 
47.7 	boarding care home, the portion related to section 256.9657 shall be equal to $8.86 $10.86
47.8 	multiplied by the result of its number of nursing home beds divided by its total number of 
47.9 	licensed beds.
47.10 	(b) The portion related to the licensure fee under section 144.122, paragraph (d), 
47.11 	shall be the amount of the fee divided by actual resident days.
47.12 	(c) The portion related to scholarships shall be determined under section 256B.431, 
47.13 	subdivision 36.
47.14 	(d) The portion related to long-term care consultation shall be determined according 
47.15 	to section 256B.0911, subdivision 6.
47.16 	(e) The portion related to development and education of resident and family advisory 
47.17 	councils under section 144A.33 shall be $5 divided by 365.
47.18 	(f) The portion related to planned closure rate adjustments shall be as determined 
47.19 	under sections 256B.436 and 256B.437, subdivision 6. Planned closure rate adjustments 
47.20 	that take effect before October 1, 2014, shall no longer be included in the payment rate 
47.21 	for external fixed costs beginning October 1, 2016. Planned closure rate adjustments that 
47.22 	take effect on or after October 1, 2014, shall no longer be included in the payment rate 
47.23 	for external fixed costs beginning on October 1 of the first year not less than two years 
47.24 	after their effective date.
47.25 	(g) The portions related to property insurance, real estate taxes, special assessments, 
47.26 	and payments made in lieu of real estate taxes directly identified or allocated to the nursing 
47.27 	facility shall be the actual amounts divided by actual resident days.
47.28 	(h) The portion related to the Public Employees Retirement Association shall be 
47.29 	actual costs divided by resident days.
47.30 	(i) The single bed room incentives shall be as determined under section 256B.431, 
47.31 	subdivision 42. Single bed room incentives that take effect before October 1, 2014, shall 
47.32 	no longer be included in the payment rate for external fixed costs beginning October 1, 
47.33 	2016. Single bed room incentives that take effect on or after October 1, 2014, shall no 
47.34 	longer be included in the payment rate for external fixed costs beginning on October 1 of 
47.35 	the first year not less than two years after their effective date.
48.1 	(j) The payment rate for external fixed costs shall be the sum of the amounts in 
48.2 	paragraphs (a) to (i).

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

48.4 	Sec. 14. Minnesota Statutes 2009 Supplement, section 256B.441, subdivision 55, 
48.5 	is amended to read:
48.6 		Subd. 55.Phase-in of rebased operating payment rates.  (a) For the rate years 
48.7 	beginning October 1, 2008, to October 1, 2015, the operating payment rate calculated 
48.8 	under this section shall be phased in by blending the operating rate with the operating 
48.9 	payment rate determined under section 256B.434. For purposes of this subdivision, the 
48.10 	rate to be used that is determined under section 256B.434 shall not include the portion of 
48.11 	the operating payment rate related to performance-based incentive payments under section 
48.12 	256B.434, subdivision 4, paragraph (d). For the rate year beginning October 1, 2008, the 
48.13 	operating payment rate for each facility shall be 13 percent of the operating payment rate 
48.14 	from this section, and 87 percent of the operating payment rate from section 256B.434. 
48.15 	For the rate year beginning October 1, 2009, the operating payment rate for each facility 
48.16 	shall be 14 percent of the operating payment rate from this section, and 86 percent of 
48.17 	the operating payment rate from section 256B.434. For rate years beginning October 1, 
48.18 	2010; October 1, 2011; and October 1, 2012, For the rate period from October 1, 2009, to 
48.19 	September 30, 2013,  no rate adjustments shall be implemented under this section, but shall 
48.20 	be determined under section 256B.434. For the rate year beginning October 1, 2013, the 
48.21 	operating payment rate for each facility shall be 65 percent of the operating payment rate 
48.22 	from this section, and 35 percent of the operating payment rate from section 256B.434. 
48.23 	For the rate year beginning October 1, 2014, the operating payment rate for each facility 
48.24 	shall be 82 percent of the operating payment rate from this section, and 18 percent of the 
48.25 	operating payment rate from section 256B.434. For the rate year beginning October 1, 
48.26 	2015, the operating payment rate for each facility shall be the operating payment rate 
48.27 	determined under this section. The blending of operating payment rates under this section 
48.28 	shall be performed separately for each RUG's class.
48.29 	(b) For the rate year beginning October 1, 2008, the commissioner shall apply limits 
48.30 	to the operating payment rate increases under paragraph (a) by creating a minimum 
48.31 	percentage increase and a maximum percentage increase.
48.32 	(1) Each nursing facility that receives a blended October 1, 2008, operating payment 
48.33 	rate increase under paragraph (a) of less than one percent, when compared to its operating 
48.34 	payment rate on September 30, 2008, computed using rates with RUG's weight of 1.00, 
48.35 	shall receive a rate adjustment of one percent.
49.1 	(2) The commissioner shall determine a maximum percentage increase that will 
49.2 	result in savings equal to the cost of allowing the minimum increase in clause (1). Nursing 
49.3 	facilities with a blended October 1, 2008, operating payment rate increase under paragraph 
49.4 	(a) greater than the maximum percentage increase determined by the commissioner, when 
49.5 	compared to its operating payment rate on September 30, 2008, computed using rates with 
49.6 	a RUG's weight of 1.00, shall receive the maximum percentage increase.
49.7 	(3) Nursing facilities with a blended October 1, 2008, operating payment rate 
49.8 	increase under paragraph (a) greater than one percent and less than the maximum 
49.9 	percentage increase determined by the commissioner, when compared to its operating 
49.10 	payment rate on September 30, 2008, computed using rates with a RUG's weight of 1.00, 
49.11 	shall receive the blended October 1, 2008, operating payment rate increase determined 
49.12 	under paragraph (a).
49.13 	(4) The October 1, 2009, through October 1, 2015, operating payment rate for 
49.14 	facilities receiving the maximum percentage increase determined in clause (2) shall be 
49.15 	the amount determined under paragraph (a) less the difference between the amount 
49.16 	determined under paragraph (a) for October 1, 2008, and the amount allowed under clause 
49.17 	(2). This rate restriction does not apply to rate increases provided in any other section.
49.18 	(c) A portion of the funds received under this subdivision that are in excess of 
49.19 	operating payment rates that a facility would have received under section 256B.434, as 
49.20 	determined in accordance with clauses (1) to (3), shall be subject to the requirements in 
49.21 	section 256B.434, subdivision 19, paragraphs (b) to (h).
49.22 	(1) Determine the amount of additional funding available to a facility, which shall be 
49.23 	equal to total medical assistance resident days from the most recent reporting year times 
49.24 	the difference between the blended rate determined in paragraph (a) for the rate year being 
49.25 	computed and the blended rate for the prior year.
49.26 	(2) Determine the portion of all operating costs, for the most recent reporting year, 
49.27 	that are compensation related. If this value exceeds 75 percent, use 75 percent.
49.28 	(3) Subtract the amount determined in clause (2) from 75 percent.
49.29 	(4) The portion of the fund received under this subdivision that shall be subject to 
49.30 	the requirements in section 256B.434, subdivision 19, paragraphs (b) to (h), shall equal 
49.31 	the amount determined in clause (1) times the amount determined in clause (3).

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

49.33 	Sec. 15. Minnesota Statutes 2008, section 256B.49, is amended by adding a 
49.34 	subdivision to read:
50.1 		Subd. 23.Living arrangements. The commissioner shall not place a limit, 
50.2 	without express legislative approval, on the number of adult recipients of home and 
50.3 	community-based waivered services receiving assisted living plus services or customized 
50.4 	living services who may reside in one building, regardless of adult recipient age. 
50.5 	Limits in effect on May 1, 2001, on the number of recipients who may reside in one 
50.6 	living unit shall remain in effect, regardless of the number of units in a building. The 
50.7 	commissioner shall not deny medical assistance enrollment based on building capacity 
50.8 	to an otherwise-qualified provider of waivered services.

50.9 	Sec. 16. Minnesota Statutes 2008, section 256B.5012, is amended by adding a 
50.10 	subdivision to read:
50.11 		Subd. 9.Rate increase effective June 1, 2010. For rate periods beginning on or 
50.12 	after June 1, 2010, the commissioner shall increase the total operating payment rate for 
50.13 	each facility reimbursed under this section by $8.74 per day. The increase shall not be 
50.14 	subject to any annual percentage increase.

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

50.16 	Sec. 17. Minnesota Statutes 2009 Supplement, section 256B.69, subdivision 23, 
50.17 	is amended to read:
50.18 		Subd. 23.Alternative services; elderly and disabled persons. (a) The 
50.19 	commissioner may implement demonstration projects to create alternative integrated 
50.20 	delivery systems for acute and long-term care services to elderly persons and persons 
50.21 	with disabilities as defined in section 256B.77, subdivision 7a, that provide increased 
50.22 	coordination, improve access to quality services, and mitigate future cost increases. 
50.23 	The commissioner may seek federal authority to combine Medicare and Medicaid 
50.24 	capitation payments for the purpose of such demonstrations and may contract with 
50.25 	Medicare-approved special needs plans to provide Medicaid services. Medicare funds and 
50.26 	services shall be administered according to the terms and conditions of the federal contract 
50.27 	and demonstration provisions. For the purpose of administering medical assistance funds, 
50.28 	demonstrations under this subdivision are subject to subdivisions 1 to 22. The provisions 
50.29 	of Minnesota Rules, parts 9500.1450 to 9500.1464, apply to these demonstrations, 
50.30 	with the exceptions of parts 9500.1452, subpart 2, item B; and 9500.1457, subpart 1, 
50.31 	items B and C, which do not apply to persons enrolling in demonstrations under this 
50.32 	section. An initial open enrollment period may be provided. Persons who disenroll from 
50.33 	demonstrations under this subdivision remain subject to Minnesota Rules, parts 9500.1450 
50.34 	to 9500.1464. When a person is enrolled in a health plan under these demonstrations and 
51.1 	the health plan's participation is subsequently terminated for any reason, the person shall 
51.2 	be provided an opportunity to select a new health plan and shall have the right to change 
51.3 	health plans within the first 60 days of enrollment in the second health plan. Persons 
51.4 	required to participate in health plans under this section who fail to make a choice of 
51.5 	health plan shall not be randomly assigned to health plans under these demonstrations. 
51.6 	Notwithstanding section 256L.12, subdivision 5, and Minnesota Rules, part 9505.5220, 
51.7 	subpart 1, item A, if adopted, for the purpose of demonstrations under this subdivision, 
51.8 	the commissioner may contract with managed care organizations, including counties, to 
51.9 	serve only elderly persons eligible for medical assistance, elderly and disabled persons, or 
51.10 	disabled persons only. For persons with a primary diagnosis of developmental disability, 
51.11 	serious and persistent mental illness, or serious emotional disturbance, the commissioner 
51.12 	must ensure that the county authority has approved the demonstration and contracting 
51.13 	design. Enrollment in these projects for persons with disabilities shall be voluntary. The 
51.14 	commissioner shall not implement any demonstration project under this subdivision for 
51.15 	persons with a primary diagnosis of developmental disabilities, serious and persistent 
51.16 	mental illness, or serious emotional disturbance, without approval of the county board of 
51.17 	the county in which the demonstration is being implemented.
51.18 	(b) Notwithstanding chapter 245B, sections 252.40 to 252.46, 256B.092, 256B.501 
51.19 	to 256B.5015, and Minnesota Rules, parts 9525.0004 to 9525.0036, 9525.1200 to 
51.20 	9525.1330, 9525.1580, and 9525.1800 to 9525.1930, the commissioner may implement 
51.21 	under this section projects for persons with developmental disabilities. The commissioner 
51.22 	may capitate payments for ICF/MR services, waivered services for developmental 
51.23 	disabilities, including case management services, day training and habilitation and 
51.24 	alternative active treatment services, and other services as approved by the state and by the 
51.25 	federal government. Case management and active treatment must be individualized and 
51.26 	developed in accordance with a person-centered plan. Costs under these projects may not 
51.27 	exceed costs that would have been incurred under fee-for-service. Beginning July 1, 2003, 
51.28 	and until four years after the pilot project implementation date, subcontractor participation 
51.29 	in the long-term care developmental disability pilot is limited to a nonprofit long-term 
51.30 	care system providing ICF/MR services, home and community-based waiver services, 
51.31 	and in-home services to no more than 120 consumers with developmental disabilities in 
51.32 	Carver, Hennepin, and Scott Counties. The commissioner shall report to the legislature 
51.33 	prior to expansion of the developmental disability pilot project. This paragraph expires 
51.34 	four years after the implementation date of the pilot project.
51.35 	(c) Before implementation of a demonstration project for disabled persons, the 
51.36 	commissioner must provide information to appropriate committees of the house of 
52.1 	representatives and senate and must involve representatives of affected disability groups 
52.2 	in the design of the demonstration projects.
52.3 	(d) A nursing facility reimbursed under the alternative reimbursement methodology 
52.4 	in section 256B.434 may, in collaboration with a hospital, clinic, or other health care entity 
52.5 	provide services under paragraph (a). The commissioner shall amend the state plan and 
52.6 	seek any federal waivers necessary to implement this paragraph.
52.7 	(e) The commissioner, in consultation with the commissioners of commerce and 
52.8 	health, may approve and implement programs for all-inclusive care for the elderly (PACE) 
52.9 	according to federal laws and regulations governing that program and state laws or rules 
52.10 	applicable to participating providers. The process for approval of these programs shall 
52.11 	begin only after the commissioner receives grant money in an amount sufficient to cover 
52.12 	the state share of the administrative and actuarial costs to implement the programs during 
52.13 	state fiscal years 2006 and 2007. Grant amounts for this purpose shall be deposited in an 
52.14 	account in the special revenue fund and are appropriated to the commissioner to be used 
52.15 	solely for the purpose of PACE administrative and actuarial costs. A PACE provider is 
52.16 	not required to be licensed or certified as a health plan company as defined in section 
52.17 	62Q.01, subdivision 4. Persons age 55 and older who have been screened by the county 
52.18 	and found to be eligible for services under the elderly waiver or community alternatives 
52.19 	for disabled individuals or who are already eligible for Medicaid but meet level of 
52.20 	care criteria for receipt of waiver services may choose to enroll in the PACE program. 
52.21 	Medicare and Medicaid services will be provided according to this subdivision and 
52.22 	federal Medicare and Medicaid requirements governing PACE providers and programs. 
52.23 	PACE enrollees will receive Medicaid home and community-based services through the 
52.24 	PACE provider as an alternative to services for which they would otherwise be eligible 
52.25 	through home and community-based waiver programs and Medicaid State Plan Services. 
52.26 	The commissioner shall establish Medicaid rates for PACE providers that do not exceed 
52.27 	costs that would have been incurred under fee-for-service or other relevant managed care 
52.28 	programs operated by the state.
52.29 	(f) The commissioner shall seek federal approval to expand the Minnesota disability 
52.30 	health options (MnDHO) program established under this subdivision in stages, first to 
52.31 	regional population centers outside the seven-county metro area and then to all areas of 
52.32 	the state. Until July 1, 2009, expansion for MnDHO projects that include home and 
52.33 	community-based services is limited to the two projects and service areas in effect on 
52.34 	March 1, 2006. Enrollment in integrated MnDHO programs that include home and 
52.35 	community-based services shall remain voluntary. Costs for home and community-based 
52.36 	services included under MnDHO must not exceed costs that would have been incurred 
53.1 	under the fee-for-service program. Notwithstanding whether expansion occurs under 
53.2 	this paragraph, in determining MnDHO payment rates and risk adjustment methods for 
53.3 	contract years starting in 2012, the commissioner must consider the methods used to 
53.4 	determine county allocations for home and community-based program participants. If 
53.5 	necessary to reduce MnDHO rates to comply with the provision regarding MnDHO costs 
53.6 	for home and community-based services, the commissioner shall achieve the reduction 
53.7 	by maintaining the base rate for contract years year 2010 and 2011 for services provided 
53.8 	under the community alternatives for disabled individuals waiver at the same level as for 
53.9 	contract year 2009. The commissioner may apply other reductions to MnDHO rates to 
53.10 	implement decreases in provider payment rates required by state law. Effective December 
53.11 	31, 2010, enrollment and operation of the MnDHO program in effect during 2010 shall 
53.12 	cease. The commissioner may reopen the program provided all applicable conditions of 
53.13 	this section are met. In developing program specifications for expansion of integrated 
53.14 	programs, the commissioner shall involve and consult the state-level stakeholder group 
53.15 	established in subdivision 28, paragraph (d), including consultation on whether and how 
53.16 	to include home and community-based waiver programs. Plans for further expansion of to 
53.17 	reopen MnDHO projects shall be presented to the chairs of the house of representatives 
53.18 	and senate committees with jurisdiction over health and human services policy and finance 
53.19 	by February 1, 2007 prior to implementation.
53.20 	(g) Notwithstanding section 256B.0261, health plans providing services under this 
53.21 	section are responsible for home care targeted case management and relocation targeted 
53.22 	case management. Services must be provided according to the terms of the waivers and 
53.23 	contracts approved by the federal government.

53.24 	Sec. 18. REVISOR'S INSTRUCTION.
 53.25 	The revisor shall edit Minnesota Statutes, section 256B.0917, subdivision 14, to 
53.26 	be effective July 1, 2011.

53.27 	ARTICLE 3
53.28 	CHILDREN AND FAMILY SERVICES; DEPARTMENT OF HUMAN 
53.29 	SERVICES LICENSING

53.30 	Section 1. Minnesota Statutes 2009 Supplement, section 245C.27, subdivision 1, is 
53.31 	amended to read:
53.32 		Subdivision 1.Fair hearing when disqualification is not set aside rescinded. (a) 
53.33 	If the commissioner does not set aside rescind  a disqualification of an individual under 
53.34 	section 245C.22 who is disqualified on the basis of a preponderance of evidence that the 
54.1 	individual committed an act or acts that meet the definition of any of the crimes listed in 
54.2 	section 245C.15; for a determination under section 626.556 or 626.557 of substantiated 
54.3 	maltreatment that was serious or recurring under section 245C.15; or for failure to make 
54.4 	required reports under section 626.556, subdivision 3; or 626.557, subdivision 3, pursuant 
54.5 	to section 245C.15, subdivision 4, paragraph (b), clause (1), the individual may request 
54.6 	a fair hearing under section 256.045, unless the disqualification is deemed conclusive 
54.7 	under section 245C.29.
54.8 	(b) The fair hearing is the only administrative appeal of the final agency 
54.9 	determination for purposes of appeal by the disqualified individual. The disqualified 
54.10 	individual does not have the right to challenge the accuracy and completeness of data 
54.11 	under section 13.04.
54.12 	(c) Except as provided under paragraph (e), if the individual was disqualified based 
54.13 	on a conviction of, admission to, or Alford Plea to any crimes listed in section 245C.15, 
54.14 	subdivisions 1 to 4, or for a disqualification under section 256.98, subdivision 8, the 
54.15 	reconsideration decision under section 245C.22 is the final agency determination for 
54.16 	purposes of appeal by the disqualified individual and is not subject to a hearing under 
54.17 	section 256.045. If the individual was disqualified based on a judicial determination, that 
54.18 	determination is treated the same as a conviction for purposes of appeal.
54.19 	(d) This subdivision does not apply to a public employee's appeal of a disqualification 
54.20 	under section 245C.28, subdivision 3.
54.21 	(e) Notwithstanding paragraph (c), if the commissioner does not set aside rescind 
54.22 	 a disqualification of an individual who was disqualified based on both a preponderance 
54.23 	of evidence and a conviction or admission, the individual may request a fair hearing 
54.24 	under section 256.045, unless the disqualifications are deemed conclusive under section 
54.25 	245C.29. The scope of the hearing conducted under section 256.045 with regard to the 
54.26 	disqualification based on a conviction or admission shall be limited solely to whether the 
54.27 	individual poses a risk of harm, according to section 256.045, subdivision 3b. In this case, 
54.28 	the reconsideration decision under section 245C.22 is not the final agency decision for 
54.29 	purposes of appeal by the disqualified individual.

54.30 	Sec. 2. Minnesota Statutes 2008, section 245C.27, subdivision 2, is amended to read:
54.31 		Subd. 2.Consolidated fair hearing. (a) If an individual who is disqualified on the 
54.32 	bases of serious or recurring maltreatment requests a fair hearing on the maltreatment 
54.33 	determination under section 626.556, subdivision 10i, or 626.557, subdivision 9d, and 
54.34 	requests a fair hearing under this section on the disqualification, which has not been 
55.1 	set aside rescinded, the scope of the fair hearing under section 256.045 shall include the 
55.2 	maltreatment determination and the disqualification. 
55.3 	(b) A fair hearing is the only administrative appeal of the final agency determination. 
55.4 	The disqualified individual does not have the right to challenge the accuracy and 
55.5 	completeness of data under section 13.04. 
55.6 	(c) This subdivision does not apply to a public employee's appeal of a disqualification 
55.7 	under section 245C.28, subdivision 3. 

55.8 	Sec. 3. Minnesota Statutes 2008, section 245C.28, subdivision 3, is amended to read:
55.9 		Subd. 3.Employees of public employer. (a) If the commissioner does not set 
55.10 	aside rescind  the disqualification of an individual who is an employee of an employer, as 
55.11 	defined in section 179A.03, subdivision 15, the individual may request a contested case 
55.12 	hearing under chapter 14, unless the disqualification is deemed conclusive under section 
55.13 	245C.29. The request for a contested case hearing must be made in writing and must be 
55.14 	postmarked and sent within 30 calendar days after the employee receives notice that the 
55.15 	disqualification has not been set aside rescinded. If the individual was disqualified based 
55.16 	on a conviction or admission to any crimes listed in section 245C.15, the scope of the 
55.17 	contested case hearing shall be limited solely to whether the individual poses a risk of 
55.18 	harm pursuant to section 245C.22.
55.19 	(b) If the commissioner does not set aside rescind  a disqualification that is based on 
55.20 	a maltreatment determination, the scope of the contested case hearing must include the 
55.21 	maltreatment determination and the disqualification. In such cases, a fair hearing must 
55.22 	not be conducted under section 256.045.
55.23 	(c) If the commissioner does not rescind a disqualification that is based on a 
55.24 	preponderance of evidence that the individual committed an act or acts that meet the 
55.25 	definition of any of the crimes listed in section 245C.15, the scope of the contested case 
55.26 	hearing must include the disqualification decision. In such cases, a fair hearing must 
55.27 	not be conducted under section 256.045.
55.28 	(d) Rules adopted under this chapter may not preclude an employee in a contested 
55.29 	case hearing for a disqualification from submitting evidence concerning information 
55.30 	gathered under this chapter.
55.31 	(d) (e)  When an individual has been disqualified from multiple licensed programs 
55.32 	and the disqualifications have not been set aside rescinded  under section 245C.22, if at 
55.33 	least one of the disqualifications entitles the person to a contested case hearing under this 
55.34 	subdivision, the scope of the contested case hearing shall include all disqualifications from 
55.35 	licensed programs which were not set aside rescinded.
56.1 	(e) (f)  In determining whether the disqualification should be set aside, the 
56.2 	administrative law judge shall consider all of the characteristics that cause the individual 
56.3 	to be disqualified in order to determine whether the individual poses a risk of harm. The 
56.4 	administrative law judge's recommendation and the commissioner's order to set aside 
56.5 	a disqualification that is the subject of the hearing constitutes a determination that the 
56.6 	individual does not pose a risk of harm and that the individual may provide direct contact 
56.7 	services in the individual program specified in the set aside.

56.8 	Sec. 4. Minnesota Statutes 2009 Supplement, section 256.045, subdivision 3, is 
56.9 	amended to read:
56.10 		Subd. 3.State agency hearings. (a) State agency hearings are available for the 
56.11 	following:
56.12 	(1) any person applying for, receiving or having received public assistance, medical 
56.13 	care, or a program of social services granted by the state agency or a county agency or 
56.14 	the federal Food Stamp Act whose application for assistance is denied, not acted upon 
56.15 	with reasonable promptness, or whose assistance is suspended, reduced, terminated, or 
56.16 	claimed to have been incorrectly paid;
56.17 	(2) any patient or relative aggrieved by an order of the commissioner under section 
56.18 	252.27;
56.19 	(3) a party aggrieved by a ruling of a prepaid health plan;
56.20 	(4) except as provided under chapter 245C, any individual or facility determined by 
56.21 	a lead agency to have maltreated a vulnerable adult under section 626.557 after they have 
56.22 	exercised their right to administrative reconsideration under section 626.557;
56.23 	(5) any person whose claim for foster care payment according to a placement of the 
56.24 	child resulting from a child protection assessment under section 626.556 is denied or not 
56.25 	acted upon with reasonable promptness, regardless of funding source;
56.26 	(6) any person to whom a right of appeal according to this section is given by other 
56.27 	provision of law;
56.28 	(7) an applicant aggrieved by an adverse decision to an application for a hardship 
56.29 	waiver under section 256B.15;
56.30 	(8) an applicant aggrieved by an adverse decision to an application or redetermination 
56.31 	for a Medicare Part D prescription drug subsidy under section 256B.04, subdivision 4a;
56.32 	(9) except as provided under chapter 245A, an individual or facility determined 
56.33 	to have maltreated a minor under section 626.556, after the individual or facility has 
56.34 	exercised the right to administrative reconsideration under section 626.556;
57.1 	(10) except as provided under chapter 245C, an individual disqualified under 
57.2 	sections 245C.14 and 245C.15, which has not been set aside rescinded  under sections 
57.3 	245C.22 and 245C.23, on the basis of serious or recurring maltreatment; a preponderance 
57.4 	of the evidence that the individual has committed an act or acts that meet the definition 
57.5 	of any of the crimes listed in section 245C.15, subdivisions 1 to 4; or for failing to make 
57.6 	reports required under section 626.556, subdivision 3, or 626.557, subdivision 3. Hearings 
57.7 	regarding a maltreatment determination under clause (4) or (9) and a disqualification under 
57.8 	this clause in which the basis for a disqualification is serious or recurring maltreatment, 
57.9 	which has not been set aside rescinded  under sections 245C.22 and 245C.23, shall be 
57.10 	consolidated into a single fair hearing. In such cases, the scope of review by the human 
57.11 	services referee shall include both the maltreatment determination and the disqualification. 
57.12 	The failure to exercise the right to an administrative reconsideration shall not be a bar to a 
57.13 	hearing under this section if federal law provides an individual the right to a hearing to 
57.14 	dispute a finding of maltreatment. Individuals and organizations specified in this section 
57.15 	may contest the specified action, decision, or final disposition before the state agency by 
57.16 	submitting a written request for a hearing to the state agency within 30 days after receiving 
57.17 	written notice of the action, decision, or final disposition, or within 90 days of such written 
57.18 	notice if the applicant, recipient, patient, or relative shows good cause why the request 
57.19 	was not submitted within the 30-day time limit; or
57.20 	(11) any person with an outstanding debt resulting from receipt of public assistance, 
57.21 	medical care, or the federal Food Stamp Act who is contesting a setoff claim by the 
57.22 	Department of Human Services or a county agency. The scope of the appeal is the validity 
57.23 	of the claimant agency's intention to request a setoff of a refund under chapter 270A 
57.24 	against the debt.
57.25 	(b) The hearing for an individual or facility under paragraph (a), clause (4), (9), or 
57.26 	(10), is the only administrative appeal to the final agency determination specifically, 
57.27 	including a challenge to the accuracy and completeness of data under section 13.04. 
57.28 	Hearings requested under paragraph (a), clause (4), apply only to incidents of maltreatment 
57.29 	that occur on or after October 1, 1995. Hearings requested by nursing assistants in nursing 
57.30 	homes alleged to have maltreated a resident prior to October 1, 1995, shall be held as a 
57.31 	contested case proceeding under the provisions of chapter 14. Hearings requested under 
57.32 	paragraph (a), clause (9), apply only to incidents of maltreatment that occur on or after 
57.33 	July 1, 1997. A hearing for an individual or facility under paragraph (a), clause (9), is 
57.34 	only available when there is no juvenile court or adult criminal action pending. If such 
57.35 	action is filed in either court while an administrative review is pending, the administrative 
57.36 	review must be suspended until the judicial actions are completed. If the juvenile court 
58.1 	action or criminal charge is dismissed or the criminal action overturned, the matter may be 
58.2 	considered in an administrative hearing.
58.3 	(c) For purposes of this section, bargaining unit grievance procedures are not an 
58.4 	administrative appeal.
58.5 	(d) The scope of hearings involving claims to foster care payments under paragraph 
58.6 	(a), clause (5), shall be limited to the issue of whether the county is legally responsible 
58.7 	for a child's placement under court order or voluntary placement agreement and, if so, 
58.8 	the correct amount of foster care payment to be made on the child's behalf and shall not 
58.9 	include review of the propriety of the county's child protection determination or child 
58.10 	placement decision.
58.11 	(e) A vendor of medical care as defined in section 256B.02, subdivision 7, or a 
58.12 	vendor under contract with a county agency to provide social services is not a party and 
58.13 	may not request a hearing under this section, except if assisting a recipient as provided in 
58.14 	subdivision 4.
58.15 	(f) An applicant or recipient is not entitled to receive social services beyond the 
58.16 	services prescribed under chapter 256M or other social services the person is eligible 
58.17 	for under state law.
58.18 	(g) The commissioner may summarily affirm the county or state agency's proposed 
58.19 	action without a hearing when the sole issue is an automatic change due to a change in 
58.20 	state or federal law.

58.21 	Sec. 5. Minnesota Statutes 2008, section 256D.0515, is amended to read:
58.22 	256D.0515 ASSET LIMITATIONS FOR FOOD STAMP HOUSEHOLDS.
58.23 	All food stamp households must be determined eligible for the benefit discussed 
58.24 	under section 256.029. Food stamp households must demonstrate that:
58.25 	(1) their gross income meets the federal Food Stamp requirements under United 
58.26 	States Code, title 7, section 2014(c); and
58.27 	(2) they have financial resources, excluding vehicles, of less than $7,000is equal to 
58.28 	or less than 165 percent of the federal poverty guidelines for the same family size.

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

58.30 	Sec. 6. Minnesota Statutes 2008, section 256J.24, subdivision 6, is amended to read:
58.31 		Subd. 6.Family cap. (a) MFIP assistance units shall not receive an increase in the 
58.32 	cash portion of the transitional standard as a result of the birth of a child, unless one of 
58.33 	the conditions under paragraph (b) is met. The child shall be considered a member of the 
59.1 	assistance unit according to subdivisions 1 to 3, but shall be excluded in determining 
59.2 	family size for purposes of determining the amount of the cash portion of the transitional 
59.3 	standard under subdivision 5. The child shall be included in determining family size for 
59.4 	purposes of determining the food portion of the transitional standard. The transitional 
59.5 	standard under this subdivision shall be the total of the cash and food portions as specified 
59.6 	in this paragraph. The family wage level under this subdivision shall be based on the 
59.7 	family size used to determine the food portion of the transitional standard.
59.8 	(b) A child shall be included in determining family size for purposes of determining 
59.9 	the amount of the cash portion of the MFIP transitional standard when at least one of 
59.10 	the following conditions is met:
59.11 	(1) for families receiving MFIP assistance on July 1, 2003, the child is born to the 
59.12 	adult parent before May 1, 2004;
59.13 	(2) for families who apply for the diversionary work program under section 256J.95
59.14 	or MFIP assistance on or after July 1, 2003, the child is born to the adult parent within 
59.15 	ten months of the date the family is eligible for assistance; 
59.16 	(3) the child was conceived as a result of a sexual assault or incest, provided that the 
59.17 	incident has been reported to a law enforcement agency;
59.18 	(4) the child's mother is a minor caregiver as defined in section 256J.08, subdivision 
59.19 	59, and the child, or multiple children, are the mother's first birth; or
59.20 	(5) the child is the mother's first child subsequent to a pregnancy that did not result 
59.21 	in a live birth; or
59.22 	(6) any child previously excluded in determining family size under paragraph 
59.23 	(a) shall be included if the adult parent or parents have not received benefits from the 
59.24 	diversionary work program under section 256J.95 or MFIP assistance in the previous ten 
59.25 	months. An adult parent or parents who reapply and have received benefits from the 
59.26 	diversionary work program or MFIP assistance in the past ten months shall be under the 
59.27 	ten-month grace period of their previous application under clause (2).
59.28 	(c) Income and resources of a child excluded under this subdivision, except child 
59.29 	support received or distributed on behalf of this child, must be considered using the same 
59.30 	policies as for other children when determining the grant amount of the assistance unit.
59.31 	(d) The caregiver must assign support and cooperate with the child support 
59.32 	enforcement agency to establish paternity and collect child support on behalf of the 
59.33 	excluded child. Failure to cooperate results in the sanction specified in section 256J.46, 
59.34 	subdivisions 2 and 2a. Current support paid on behalf of the excluded child shall be 
59.35 	distributed according to section 256.741, subdivision 15. 
60.1 	(e) County agencies must inform applicants of the provisions under this subdivision 
60.2 	at the time of each application and at recertification.
60.3 	(f) Children excluded under this provision shall be deemed MFIP recipients for 
60.4 	purposes of child care under chapter 119B.

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

60.6 	Sec. 7. Minnesota Statutes 2009 Supplement, section 256J.425, subdivision 3, is 
60.7 	amended to read:
60.8 		Subd. 3.Hard-to-employ participants. (a) An assistance unit subject to the time 
60.9 	limit in section 256J.42, subdivision 1, is eligible to receive months of assistance under 
60.10 	a hardship extension if the participant who reached the time limit belongs to any of the 
60.11 	following groups: 
60.12 	(1) a person who is diagnosed by a licensed physician, psychological practitioner, or 
60.13 	other qualified professional, as developmentally disabled or mentally ill, and the condition 
60.14 	severely limits the person's ability to obtain or maintain suitable employment;
60.15 	(2) a person who:
60.16 	(i) has been assessed by a vocational specialist or the county agency to be 
60.17 	unemployable for purposes of this subdivision; or
60.18 	(ii) has an IQ below 80 who has been assessed by a vocational specialist or a county 
60.19 	agency to be employable, but the condition severely limits the person's ability to obtain or 
60.20 	maintain suitable employment. The determination of IQ level must be made by a qualified 
60.21 	professional. In the case of a non-English-speaking person: (A) the determination must 
60.22 	be made by a qualified professional with experience conducting culturally appropriate 
60.23 	assessments, whenever possible; (B) the county may accept reports that identify an 
60.24 	IQ range as opposed to a specific score; (C) these reports must include a statement of 
60.25 	confidence in the results;
60.26 	(3) a person who is determined by a qualified professional to be learning disabled, 
60.27 	and the condition severely limits the person's ability to obtain or maintain suitable 
60.28 	employment. For purposes of the initial approval of a learning disability extension, the 
60.29 	determination must have been made or confirmed within the previous 12 months. In the 
60.30 	case of a non-English-speaking person: (i) the determination must be made by a qualified 
60.31 	professional with experience conducting culturally appropriate assessments, whenever 
60.32 	possible; and (ii) these reports must include a statement of confidence in the results. If a 
60.33 	rehabilitation plan for a participant extended as learning disabled is developed or approved 
60.34 	by the county agency, the plan must be incorporated into the employment plan. However, 
61.1 	a rehabilitation plan does not replace the requirement to develop and comply with an 
61.2 	employment plan under section 256J.521; or 
61.3 	(4) a person who has been granted a family violence waiver, and who is complying 
61.4 	with an employment plan under section 256J.521, subdivision 3. 
61.5 	(b) For purposes of this section chapter, "severely limits the person's ability to 
61.6 	obtain or maintain suitable employment" means: (1) that a qualified professional has 
61.7 	determined that the person's condition prevents the person from working 20 or more hours 
61.8 	per week; or (2) for a person who meets the requirements of paragraph (a), clause (2), 
61.9 	item (ii), or paragraph (a), clause (3), of this subdivision, a qualified professional has 
61.10 	determined: (i) the person's condition significantly restricts the range of employment that 
61.11 	the person is able to perform; or (ii) significantly interferes with the person's ability to 
61.12 	obtain or maintain employment for 20 or more hours per week.

61.13 	Sec. 8. Minnesota Statutes 2008, section 626.556, subdivision 10i, is amended to read:
61.14 		Subd. 10i.Administrative reconsideration; review panel. (a) Administrative 
61.15 	reconsideration is not applicable in family assessments since no determination concerning 
61.16 	maltreatment is made. For investigations, except as provided under paragraph (e), an 
61.17 	individual or facility that the commissioner of human services, a local social service 
61.18 	agency, or the commissioner of education determines has maltreated a child, an interested 
61.19 	person acting on behalf of the child, regardless of the determination, who contests 
61.20 	the investigating agency's final determination regarding maltreatment, may request the 
61.21 	investigating agency to reconsider its final determination regarding maltreatment. The 
61.22 	request for reconsideration must be submitted in writing to the investigating agency within 
61.23 	15 calendar days after receipt of notice of the final determination regarding maltreatment 
61.24 	or, if the request is made by an interested person who is not entitled to notice, within 
61.25 	15 days after receipt of the notice by the parent or guardian of the child. If mailed, the 
61.26 	request for reconsideration must be postmarked and sent to the investigating agency 
61.27 	within 15 calendar days of the individual's or facility's receipt of the final determination. If 
61.28 	the request for reconsideration is made by personal service, it must be received by the 
61.29 	investigating agency within 15 calendar days after the individual's or facility's receipt of the 
61.30 	final determination. Effective January 1, 2002, an individual who was determined to have 
61.31 	maltreated a child under this section and who was disqualified on the basis of serious or 
61.32 	recurring maltreatment under sections 245C.14 and 245C.15, may request reconsideration 
61.33 	of the maltreatment determination and the disqualification. The request for reconsideration 
61.34 	of the maltreatment determination and the disqualification must be submitted within 30 
61.35 	calendar days of the individual's receipt of the notice of disqualification under sections 
62.1 	245C.16 and 245C.17. If mailed, the request for reconsideration of the maltreatment 
62.2 	determination and the disqualification must be postmarked and sent to the investigating 
62.3 	agency within 30 calendar days of the individual's receipt of the maltreatment 
62.4 	determination and notice of disqualification. If the request for reconsideration is made by 
62.5 	personal service, it must be received by the investigating agency within 30 calendar days 
62.6 	after the individual's receipt of the notice of disqualification.
62.7 	(b) Except as provided under paragraphs (e) and (f), if the investigating agency 
62.8 	denies the request or fails to act upon the request within 15 working days after receiving 
62.9 	the request for reconsideration, the person or facility entitled to a fair hearing under section 
62.10 	256.045 may submit to the commissioner of human services or the commissioner of 
62.11 	education a written request for a hearing under that section. Section 256.045 also governs 
62.12 	hearings requested to contest a final determination of the commissioner of education. For 
62.13 	reports involving maltreatment of a child in a facility, an interested person acting on behalf 
62.14 	of the child may request a review by the Child Maltreatment Review Panel under section 
62.15 	256.022 if the investigating agency denies the request or fails to act upon the request or 
62.16 	if the interested person contests a reconsidered determination. The investigating agency 
62.17 	shall notify persons who request reconsideration of their rights under this paragraph. 
62.18 	The request must be submitted in writing to the review panel and a copy sent to the 
62.19 	investigating agency within 30 calendar days of receipt of notice of a denial of a request 
62.20 	for reconsideration or of a reconsidered determination. The request must specifically 
62.21 	identify the aspects of the agency determination with which the person is dissatisfied.
62.22 	(c) If, as a result of a reconsideration or review, the investigating agency changes 
62.23 	the final determination of maltreatment, that agency shall notify the parties specified in 
62.24 	subdivisions 10b, 10d, and 10f.
62.25 	(d) Except as provided under paragraph (f), if an individual or facility contests the 
62.26 	investigating agency's final determination regarding maltreatment by requesting a fair 
62.27 	hearing under section 256.045, the commissioner of human services shall assure that the 
62.28 	hearing is conducted and a decision is reached within 90 days of receipt of the request for 
62.29 	a hearing. The time for action on the decision may be extended for as many days as the 
62.30 	hearing is postponed or the record is held open for the benefit of either party.
62.31 	(e) Effective January 1, 2002, If an individual was disqualified under sections 
62.32 	245C.14 and 245C.15, on the basis of a determination of maltreatment, which was 
62.33 	serious or recurring, and the individual has requested reconsideration of the maltreatment 
62.34 	determination under paragraph (a) and requested reconsideration of the disqualification 
62.35 	under sections 245C.21 to 245C.27, reconsideration of the maltreatment determination and 
62.36 	reconsideration of the disqualification shall be consolidated into a single reconsideration. 
63.1 	If reconsideration of the maltreatment determination is denied or the disqualification is not 
63.2 	set aside rescinded  under sections 245C.21 to 245C.27, the individual may request a fair 
63.3 	hearing under section 256.045. If an individual requests a fair hearing on the maltreatment 
63.4 	determination and the disqualification, the scope of the fair hearing shall include both the 
63.5 	maltreatment determination and the disqualification.
63.6 	(f) Effective January 1, 2002, If a maltreatment determination or a disqualification 
63.7 	based on serious or recurring maltreatment is the basis for a denial of a license under 
63.8 	section 245A.05 or a licensing sanction under section 245A.07, the license holder has the 
63.9 	right to a contested case hearing under chapter 14 and Minnesota Rules, parts 1400.8505 
63.10 	to 1400.8612. As provided for under section 245A.08, subdivision 2a, the scope of the 
63.11 	contested case hearing shall include the maltreatment determination, disqualification, 
63.12 	and licensing sanction or denial of a license. In such cases, a fair hearing regarding 
63.13 	the maltreatment determination and disqualification shall not be conducted under 
63.14 	section 256.045. Except for family child care and child foster care, reconsideration of a 
63.15 	maltreatment determination as provided under this subdivision, and reconsideration of a 
63.16 	disqualification as provided under section 245C.22, shall also not be conducted when:
63.17 	(1) a denial of a license under section 245A.05 or a licensing sanction under section 
63.18 	245A.07, is based on a determination that the license holder is responsible for maltreatment 
63.19 	or the disqualification of a license holder based on serious or recurring maltreatment;
63.20 	(2) the denial of a license or licensing sanction is issued at the same time as the 
63.21 	maltreatment determination or disqualification; and
63.22 	(3) the license holder appeals the maltreatment determination or disqualification, and 
63.23 	denial of a license or licensing sanction. 
63.24 	Notwithstanding clauses (1) to (3), if the license holder appeals the maltreatment 
63.25 	determination or disqualification, but does not appeal the denial of a license or a licensing 
63.26 	sanction, reconsideration of the maltreatment determination shall be conducted under 
63.27 	sections 626.556, subdivision 10i, and 626.557, subdivision 9d, and reconsideration of the 
63.28 	disqualification shall be conducted under section 245C.22. In such cases, a fair hearing 
63.29 	shall also be conducted as provided under sections 245C.27, 626.556, subdivision 10i, and 
63.30 	626.557, subdivision 9d.
63.31 	If the disqualified subject is an individual other than the license holder and upon 
63.32 	whom a background study must be conducted under chapter 245C, the hearings of all 
63.33 	parties may be consolidated into a single contested case hearing upon consent of all parties 
63.34 	and the administrative law judge.
63.35 	(g) For purposes of this subdivision, "interested person acting on behalf of the 
63.36 	child" means a parent or legal guardian; stepparent; grandparent; guardian ad litem; adult 
64.1 	stepbrother, stepsister, or sibling; or adult aunt or uncle; unless the person has been 
64.2 	determined to be the perpetrator of the maltreatment.

64.3 	Sec. 9. Minnesota Statutes 2008, section 626.557, subdivision 9d, is amended to read:
64.4 		Subd. 9d.Administrative reconsideration; review panel. (a) Except as provided 
64.5 	under paragraph (e), any individual or facility which a lead agency determines has 
64.6 	maltreated a vulnerable adult, or the vulnerable adult or an interested person acting on 
64.7 	behalf of the vulnerable adult, regardless of the lead agency's determination, who contests 
64.8 	the lead agency's final disposition of an allegation of maltreatment, may request the 
64.9 	lead agency to reconsider its final disposition. The request for reconsideration must be 
64.10 	submitted in writing to the lead agency within 15 calendar days after receipt of notice of 
64.11 	final disposition or, if the request is made by an interested person who is not entitled to 
64.12 	notice, within 15 days after receipt of the notice by the vulnerable adult or the vulnerable 
64.13 	adult's legal guardian. If mailed, the request for reconsideration must be postmarked and 
64.14 	sent to the lead agency within 15 calendar days of the individual's or facility's receipt of 
64.15 	the final disposition. If the request for reconsideration is made by personal service, it must 
64.16 	be received by the lead agency within 15 calendar days of the individual's or facility's 
64.17 	receipt of the final disposition. An individual who was determined to have maltreated a 
64.18 	vulnerable adult under this section and who was disqualified on the basis of serious or 
64.19 	recurring maltreatment under sections 245C.14 and 245C.15, may request reconsideration 
64.20 	of the maltreatment determination and the disqualification. The request for reconsideration 
64.21 	of the maltreatment determination and the disqualification must be submitted in writing 
64.22 	within 30 calendar days of the individual's receipt of the notice of disqualification 
64.23 	under sections 245C.16 and 245C.17. If mailed, the request for reconsideration of 
64.24 	the maltreatment determination and the disqualification must be postmarked and sent 
64.25 	to the lead agency within 30 calendar days of the individual's receipt of the notice of 
64.26 	disqualification. If the request for reconsideration is made by personal service, it must be 
64.27 	received by the lead agency within 30 calendar days after the individual's receipt of the 
64.28 	notice of disqualification.
64.29 	(b) Except as provided under paragraphs (e) and (f), if the lead agency denies the 
64.30 	request or fails to act upon the request within 15 working days after receiving the request 
64.31 	for reconsideration, the person or facility entitled to a fair hearing under section 256.045, 
64.32 	may submit to the commissioner of human services a written request for a hearing 
64.33 	under that statute. The vulnerable adult, or an interested person acting on behalf of the 
64.34 	vulnerable adult, may request a review by the Vulnerable Adult Maltreatment Review 
64.35 	Panel under section 256.021 if the lead agency denies the request or fails to act upon the 
65.1 	request, or if the vulnerable adult or interested person contests a reconsidered disposition. 
65.2 	The lead agency shall notify persons who request reconsideration of their rights under this 
65.3 	paragraph. The request must be submitted in writing to the review panel and a copy sent 
65.4 	to the lead agency within 30 calendar days of receipt of notice of a denial of a request for 
65.5 	reconsideration or of a reconsidered disposition. The request must specifically identify the 
65.6 	aspects of the agency determination with which the person is dissatisfied.
65.7 	(c) If, as a result of a reconsideration or review, the lead agency changes the final 
65.8 	disposition, it shall notify the parties specified in subdivision 9c, paragraph (d).
65.9 	(d) For purposes of this subdivision, "interested person acting on behalf of the 
65.10 	vulnerable adult" means a person designated in writing by the vulnerable adult to act 
65.11 	on behalf of the vulnerable adult, or a legal guardian or conservator or other legal 
65.12 	representative, a proxy or health care agent appointed under chapter 145B or 145C, 
65.13 	or an individual who is related to the vulnerable adult, as defined in section 245A.02, 
65.14 	subdivision 13.
65.15 	(e) If an individual was disqualified under sections 245C.14 and 245C.15, on 
65.16 	the basis of a determination of maltreatment, which was serious or recurring, and 
65.17 	the individual has requested reconsideration of the maltreatment determination under 
65.18 	paragraph (a) and reconsideration of the disqualification under sections 245C.21 to 
65.19 	245C.27, reconsideration of the maltreatment determination and requested reconsideration 
65.20 	of the disqualification shall be consolidated into a single reconsideration. If reconsideration 
65.21 	of the maltreatment determination is denied or if the disqualification is not set aside
65.22 	rescinded  under sections 245C.21 to 245C.27, the individual may request a fair hearing 
65.23 	under section 256.045. If an individual requests a fair hearing on the maltreatment 
65.24 	determination and the disqualification, the scope of the fair hearing shall include both the 
65.25 	maltreatment determination and the disqualification.
65.26 	(f) If a maltreatment determination or a disqualification based on serious or recurring 
65.27 	maltreatment is the basis for a denial of a license under section 245A.05 or a licensing 
65.28 	sanction under section 245A.07, the license holder has the right to a contested case hearing 
65.29 	under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. As provided 
65.30 	for under section 245A.08, the scope of the contested case hearing must include the 
65.31 	maltreatment determination, disqualification, and licensing sanction or denial of a license. 
65.32 	In such cases, a fair hearing must not be conducted under section 256.045. Except for 
65.33 	family child care and child foster care, reconsideration of a maltreatment determination 
65.34 	under this subdivision, and reconsideration of a disqualification under section 245C.22, 
65.35 	must not be conducted when:
66.1 	(1) a denial of a license under section 245A.05, or a licensing sanction under section 
66.2 	245A.07, is based on a determination that the license holder is responsible for maltreatment 
66.3 	or the disqualification of a license holder based on serious or recurring maltreatment;
66.4 	(2) the denial of a license or licensing sanction is issued at the same time as the 
66.5 	maltreatment determination or disqualification; and
66.6 	(3) the license holder appeals the maltreatment determination or disqualification, and 
66.7 	denial of a license or licensing sanction.
66.8 	Notwithstanding clauses (1) to (3), if the license holder appeals the maltreatment 
66.9 	determination or disqualification, but does not appeal the denial of a license or a licensing 
66.10 	sanction, reconsideration of the maltreatment determination shall be conducted under 
66.11 	sections 626.556, subdivision 10i, and 626.557, subdivision 9d, and reconsideration of the 
66.12 	disqualification shall be conducted under section 245C.22. In such cases, a fair hearing 
66.13 	shall also be conducted as provided under sections 245C.27, 626.556, subdivision 10i, and 
66.14 	626.557, subdivision 9d.
66.15 	If the disqualified subject is an individual other than the license holder and upon 
66.16 	whom a background study must be conducted under chapter 245C, the hearings of all 
66.17 	parties may be consolidated into a single contested case hearing upon consent of all parties 
66.18 	and the administrative law judge.
66.19 	(g) Until August 1, 2002, an individual or facility that was determined by the 
66.20 	commissioner of human services or the commissioner of health to be responsible for 
66.21 	neglect under section 626.5572, subdivision 17, after October 1, 1995, and before August 
66.22 	1, 2001, that believes that the finding of neglect does not meet an amended definition of 
66.23 	neglect may request a reconsideration of the determination of neglect. The commissioner 
66.24 	of human services or the commissioner of health shall mail a notice to the last known 
66.25 	address of individuals who are eligible to seek this reconsideration. The request for 
66.26 	reconsideration must state how the established findings no longer meet the elements of 
66.27 	the definition of neglect. The commissioner shall review the request for reconsideration 
66.28 	and make a determination within 15 calendar days. The commissioner's decision on this 
66.29 	reconsideration is the final agency action.
66.30 	(1) For purposes of compliance with the data destruction schedule under subdivision 
66.31 	12b, paragraph (d), when a finding of substantiated maltreatment has been changed as 
66.32 	a result of a reconsideration under this paragraph, the date of the original finding of a 
66.33 	substantiated maltreatment must be used to calculate the destruction date.
66.34 	(2) For purposes of any background studies under chapter 245C, when a 
66.35 	determination of substantiated maltreatment has been changed as a result of a 
66.36 	reconsideration under this paragraph, any prior disqualification of the individual under 
67.1 	chapter 245C that was based on this determination of maltreatment shall be rescinded, 
67.2 	and for future background studies under chapter 245C the commissioner must not use the 
67.3 	previous determination of substantiated maltreatment as a basis for disqualification or as a 
67.4 	basis for referring the individual's maltreatment history to a health-related licensing board 
67.5 	under section 245C.31.

67.6 	ARTICLE 4
67.7 	DEPARTMENT OF HEALTH

67.8 	Section 1. Minnesota Statutes 2008, section 62D.08, is amended by adding a 
67.9 	subdivision to read:
67.10 		Subd. 7.Consistent administrative expenses and investment income reporting.
 67.11 	(a) Every health maintenance organization must directly allocate administrative expenses 
67.12 	to specific lines of business or products when such information is available. Remaining 
67.13 	expenses that cannot be directly allocated must be allocated based on other methods, as 
67.14 	recommended by the Advisory Group on Administrative Expenses. Health maintenance 
67.15 	organizations must submit this information using the reporting template provided by the 
67.16 	commissioner of health.
67.17 	(b) Every health maintenance organization must allocate investment income based 
67.18 	on cumulative net income over time by business line or product and must submit this 
67.19 	information using the reporting template provided by the commissioner of health.

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

67.21 	Sec. 2. [62D.31] ADVISORY GROUP ON ADMINISTRATIVE EXPENSES.
67.22 		Subdivision 1.Establishment. The Advisory Group on Administrative Expenses 
67.23 	is established to make recommendations on the development of consistent guidelines 
67.24 	and reporting requirements, including development of a reporting template, for health 
67.25 	maintenance organizations and county-based purchasing plans that participate in publicly 
67.26 	funded programs. 
67.27 		Subd. 2.Membership. (a) The advisory group shall be chaired by the commissioner 
67.28 	of health and shall consist of ten members as follows:
67.29 	(1) the commissioner of health or the commissioner's designee;
67.30 	(2) the commissioner of human services or the commissioner's designee;
67.31 	(3) the commissioner of commerce or the commissioner's designee;
67.32 	(4) three members appointed by the commissioner of health to represent health 
67.33 	maintenance organizations and county-based purchasing plans; 
68.1 	(5) three members appointed by the commissioner of health to represent:
68.2 	(i) hospitals;
68.3 	(ii) physicians; and 
68.4 	(iii) other health care providers; and
68.5 	(6) one member appointed by the commissioner of health to represent consumers.
68.6 	(b) The appointments required under this subdivision shall be completed by 
68.7 	November 1, 2010.
68.8 		Subd. 3.Administration. The commissioner of health shall convene the first 
68.9 	meeting of the advisory group by December 1, 2010, and shall provide administrative 
68.10 	support and staff. The commissioner of health may contract with a consultant to provide 
68.11 	professional assistance and expertise to the advisory group.
68.12 		Subd. 4.Recommendations. The Advisory Group on Administrative Expenses 
68.13 	must report its recommendations, including any proposed legislation necessary to 
68.14 	implement the recommendations, to the commissioner of health and to the chairs and 
68.15 	ranking minority members of the legislative committees and divisions with jurisdiction 
68.16 	over health policy and finance by February 15, 2012.
68.17 		Subd. 5.Expiration. This section expires after submission of the report required 
68.18 	under subdivision 4 or June 30, 2012, whichever is sooner.

68.19 	Sec. 3. Minnesota Statutes 2008, section 62J.692, subdivision 4, is amended to read:
68.20 		Subd. 4.Distribution of funds. (a) Following the distribution described under 
68.21 	paragraph (b), the commissioner shall annually distribute the available medical education 
68.22 	funds to all qualifying applicants based on a distribution formula that reflects a summation 
68.23 	of two factors:
68.24 	(1) a public program volume factor, which is determined by the total volume of 
68.25 	public program revenue received by each training site as a percentage of all public 
68.26 	program revenue received by all training sites in the fund pool; and
68.27 	(2) a supplemental public program volume factor, which is determined by providing 
68.28 	a supplemental payment of 20 percent of each training site's grant to training sites whose 
68.29 	public program revenue accounted for at least 0.98 percent of the total public program 
68.30 	revenue received by all eligible training sites. Grants to training sites whose public 
68.31 	program revenue accounted for less than 0.98 percent of the total public program revenue 
68.32 	received by all eligible training sites shall be reduced by an amount equal to the total 
68.33 	value of the supplemental payment.
68.34 	Public program revenue for the distribution formula includes revenue from medical 
68.35 	assistance, prepaid medical assistance, general assistance medical care, and prepaid 
69.1 	general assistance medical care. Training sites that receive no public program revenue 
69.2 	are ineligible for funds available under this subdivision. For purposes of determining 
69.3 	training-site level grants to be distributed under paragraph (a), total statewide average 
69.4 	costs per trainee for medical residents is based on audited clinical training costs per trainee 
69.5 	in primary care clinical medical education programs for medical residents. Total statewide 
69.6 	average costs per trainee for dental residents is based on audited clinical training costs 
69.7 	per trainee in clinical medical education programs for dental students. Total statewide 
69.8 	average costs per trainee for pharmacy residents is based on audited clinical training costs 
69.9 	per trainee in clinical medical education programs for pharmacy students.
69.10 	(b) $5,350,000 of the available medical education funds shall be distributed as 
69.11 	follows:
69.12 	(1) $1,475,000 to the University of Minnesota Medical Center-Fairview;
69.13 	(2) $2,075,000 to the University of Minnesota School of Dentistry; and
69.14 	(3) $1,800,000 to the Academic Health Center. $150,000 of the funds distributed 
69.15 	to the Academic Health Center under this paragraph shall be used for a program to 
69.16 	assist foreign-trained physicians to successfully compete for family medicine residency 
69.17 	programs at the University of Minnesota.
69.18 	(c) Funds distributed shall not be used to displace current funding appropriations 
69.19 	from federal or state sources.
69.20 	(d) Funds shall be distributed to the sponsoring institutions indicating the amount 
69.21 	to be distributed to each of the sponsor's clinical medical education programs based on 
69.22 	the criteria in this subdivision and in accordance with the commissioner's approval letter. 
69.23 	Each clinical medical education program must distribute funds allocated under paragraph 
69.24 	(a) to the training sites as specified in the commissioner's approval letter. Sponsoring 
69.25 	institutions, which are accredited through an organization recognized by the Department 
69.26 	of Education or the Centers for Medicare and Medicaid Services, may contract directly 
69.27 	with training sites to provide clinical training. To ensure the quality of clinical training, 
69.28 	those accredited sponsoring institutions must:
69.29 	(1) develop contracts specifying the terms, expectations, and outcomes of the clinical 
69.30 	training conducted at sites; and
69.31 	(2) take necessary action if the contract requirements are not met. Action may 
69.32 	include the withholding of payments under this section or the removal of students from 
69.33 	the site.
69.34 	(e) Any funds not distributed in accordance with the commissioner's approval letter 
69.35 	must be returned to the medical education and research fund within 30 days of receiving 
70.1 	notice from the commissioner. The commissioner shall distribute returned funds to the 
70.2 	appropriate training sites in accordance with the commissioner's approval letter.
70.3 	(f) A maximum of $150,000 of the funds dedicated to the commissioner under 
70.4 	section 297F.10, subdivision 1, clause (2), may be used by the commissioner for 
70.5 	administrative expenses associated with implementing this section.

70.6 	Sec. 4. Minnesota Statutes 2008, section 144.226, subdivision 3, is amended to read:
70.7 		Subd. 3.Birth record surcharge. (a) In addition to any fee prescribed under 
70.8 	subdivision 1, there shall be a nonrefundable surcharge of $3 for each certified birth or 
70.9 	stillbirth record and for a certification that the vital record cannot be found. The local or 
70.10 	state registrar shall forward this amount to the commissioner of management and budget 
70.11 	for deposit into the account for the children's trust fund for the prevention of child abuse 
70.12 	established under section 256E.22. This surcharge shall not be charged under those 
70.13 	circumstances in which no fee for a certified birth or stillbirth record is permitted under 
70.14 	subdivision 1, paragraph (a). Upon certification by the commissioner of management and 
70.15 	budget that the assets in that fund exceed $20,000,000, this surcharge shall be discontinued.
70.16 	(b) In addition to any fee prescribed under subdivision 1, there shall be a 
70.17 	nonrefundable surcharge of $10 for each certified birth record. The local or state registrar 
70.18 	shall forward this amount to the commissioner of management and budget for deposit in 
70.19 	the general fund. This surcharge shall not be charged under those circumstances in which 
70.20 	no fee for a certified birth record is permitted under subdivision 1, paragraph (a).

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

70.22 	Sec. 5. Minnesota Statutes 2008, section 144E.37, is amended to read:
70.23 	144E.37 COMPREHENSIVE ADVANCED LIFE SUPPORT.
70.24 	The board commissioner of health shall establish a comprehensive advanced 
70.25 	life-support educational program to train rural medical personnel, including physicians, 
70.26 	physician assistants, nurses, and allied health care providers, in a team approach to 
70.27 	anticipate, recognize, and treat life-threatening emergencies before serious injury or 
70.28 	cardiac arrest occurs.

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

70.30 	Sec. 6. Minnesota Statutes 2009 Supplement, section 157.16, subdivision 3, is 
70.31 	amended to read:
71.1 		Subd. 3. Establishment fees; definitions. (a) The following fees are required 
71.2 	for food and beverage service establishments, youth camps, hotels, motels, lodging 
71.3 	establishments, public pools, and resorts licensed under this chapter. Food and beverage 
71.4 	service establishments must pay the highest applicable fee under paragraph (d), clause 
71.5 	(1), (2), (3), or (4), and establishments serving alcohol must pay the highest applicable 
71.6 	fee under paragraph (d), clause (6) or (7). The license fee for new operators previously 
71.7 	licensed under this chapter for the same calendar year is one-half of the appropriate annual 
71.8 	license fee, plus any penalty that may be required. The license fee for operators opening 
71.9 	on or after October 1 is one-half of the appropriate annual license fee, plus any penalty 
71.10 	that may be required. 
71.11 	(b) All food and beverage service establishments, except special event food stands, 
71.12 	and all hotels, motels, lodging establishments, public pools, and resorts shall pay an 
71.13 	annual base fee of $150. 
71.14 	(c) A special event food stand shall pay a flat fee of $50 annually. "Special event 
71.15 	food stand" means a fee category where food is prepared or served in conjunction with 
71.16 	celebrations, county fairs, or special events from a special event food stand as defined 
71.17 	in section 157.15. 
71.18 	(d) In addition to the base fee in paragraph (b), each food and beverage service 
71.19 	establishment, other than a special event food stand, and each hotel, motel, lodging 
71.20 	establishment, public pool, and resort shall pay an additional annual fee for each fee 
71.21 	category, additional food service, or required additional inspection specified in this 
71.22 	paragraph: 
71.23 	(1) Limited food menu selection, $60. "Limited food menu selection" means a fee 
71.24 	category that provides one or more of the following: 
71.25 	(i) prepackaged food that receives heat treatment and is served in the package; 
71.26 	(ii) frozen pizza that is heated and served; 
71.27 	(iii) a continental breakfast such as rolls, coffee, juice, milk, and cold cereal; 
71.28 	(iv) soft drinks, coffee, or nonalcoholic beverages; or 
71.29 	(v) cleaning for eating, drinking, or cooking utensils, when the only food served 
71.30 	is prepared off site. 
71.31 	(2) Small establishment, including boarding establishments, $120. "Small 
71.32 	establishment" means a fee category that has no salad bar and meets one or more of 
71.33 	the following: 
71.34 	(i) possesses food service equipment that consists of no more than a deep fat fryer, a 
71.35 	grill, two hot holding containers, and one or more microwave ovens; 
71.36 	(ii) serves dipped ice cream or soft serve frozen desserts; 
72.1 	(iii) serves breakfast in an owner-occupied bed and breakfast establishment; 
72.2 	(iv) is a boarding establishment; or 
72.3 	(v) meets the equipment criteria in clause (3), item (i) or (ii), and has a maximum 
72.4 	patron seating capacity of not more than 50. 
72.5 	(3) Medium establishment, $310. "Medium establishment" means a fee category 
72.6 	that meets one or more of the following: 
72.7 	(i) possesses food service equipment that includes a range, oven, steam table, salad 
72.8 	bar, or salad preparation area; 
72.9 	(ii) possesses food service equipment that includes more than one deep fat fryer, 
72.10 	one grill, or two hot holding containers; or 
72.11 	(iii) is an establishment where food is prepared at one location and served at one or 
72.12 	more separate locations. 
72.13 	Establishments meeting criteria in clause (2), item (v), are not included in this fee 
72.14 	category. 
72.15 	(4) Large establishment, $540. "Large establishment" means either: 
72.16 	(i) a fee category that (A) meets the criteria in clause (3), items (i) or (ii), for a 
72.17 	medium establishment, (B) seats more than 175 people, and (C) offers the full menu 
72.18 	selection an average of five or more days a week during the weeks of operation; or 
72.19 	(ii) a fee category that (A) meets the criteria in clause (3), item (iii), for a medium 
72.20 	establishment, and (B) prepares and serves 500 or more meals per day. 
72.21 	(5) Other food and beverage service, including food carts, mobile food units, 
72.22 	seasonal temporary food stands, and seasonal permanent food stands, $60. 
72.23 	(6) Beer or wine table service, $60. "Beer or wine table service" means a fee 
72.24 	category where the only alcoholic beverage service is beer or wine, served to customers 
72.25 	seated at tables. 
72.26 	(7) Alcoholic beverage service, other than beer or wine table service, $165. 
72.27 	"Alcohol beverage service, other than beer or wine table service" means a fee 
72.28 	category where alcoholic mixed drinks are served or where beer or wine are served from 
72.29 	a bar. 
72.30 	(8) Lodging per sleeping accommodation unit, $10, including hotels, motels, 
72.31 	lodging establishments, and resorts, up to a maximum of $1,000. "Lodging per sleeping 
72.32 	accommodation unit" means a fee category including the number of guest rooms, cottages, 
72.33 	or other rental units of a hotel, motel, lodging establishment, or resort; or the number of 
72.34 	beds in a dormitory. 
72.35 	(9) First public pool, $325; each additional public pool, $175. "Public pool" means a 
72.36 	fee category that has the meaning given in section 144.1222, subdivision 4. 
73.1 	(10) First spa, $175; each additional spa, $100. "Spa pool" means a fee category that 
73.2 	has the meaning given in Minnesota Rules, part 4717.0250, subpart 9. 
73.3 	(11) Private sewer or water, $60. "Individual private water" means a fee category 
73.4 	with a water supply other than a community public water supply as defined in Minnesota 
73.5 	Rules, chapter 4720. "Individual private sewer" means a fee category with an individual 
73.6 	sewage treatment system which uses subsurface treatment and disposal. 
73.7 	(12) Additional food service, $150. "Additional food service" means a location at 
73.8 	a food service establishment, other than the primary food preparation and service area, 
73.9 	used to prepare or serve food to the public. 
73.10 	(13) Additional inspection fee, $360. "Additional inspection fee" means a fee to 
73.11 	conduct the second inspection each year for elementary and secondary education facility 
73.12 	school lunch programs when required by the Richard B. Russell National School Lunch 
73.13 	Act. 
73.14 	(e) A fee for review of construction plans must accompany the initial license 
73.15 	application for restaurants, hotels, motels, lodging establishments, resorts, seasonal food 
73.16 	stands, and mobile food units. The fee for this construction plan review is as follows:

73.17	Service Area
	Type
	Fee
	
73.18	Food
	limited food menu
	$275
	
73.19		small establishment
	$400
	
73.20		medium establishment
	$450
	
73.21		large food establishment
	$500
	
73.22		additional food service
	$150
	
73.23	Transient food service
	food cart
	$250
	
73.24		seasonal permanent food stand
	$250
	
73.25		seasonal temporary food stand
	$250
	
73.26		mobile food unit
	$350
	
73.27	Alcohol
	beer or wine table service
	$150
	
73.28		alcohol service from bar
	$250
	
73.29	Lodging
	less than 25 rooms
	$375
	
73.30		25 to less than 100 rooms
	$400
	
73.31		100 rooms or more
	$500
	
73.32		less than five cabins
	$350
	
73.33		five to less than ten cabins
	$400
	
73.34		ten cabins or more
	$450
	
73.35 	(f) When existing food and beverage service establishments, hotels, motels, lodging 
73.36 	establishments, resorts, seasonal food stands, and mobile food units are extensively 
73.37 	remodeled, a fee must be submitted with the remodeling plans. The fee for this 
73.38 	construction plan review is as follows:

74.1	Service Area
	Type
	Fee
	
74.2	Food
	limited food menu
	$250
	
74.3		small establishment
	$300
	
74.4		medium establishment
	$350
	
74.5		large food establishment
	$400
	
74.6		additional food service
	$150
	
74.7	Transient food service
	food cart
	$250
	
74.8		seasonal permanent food stand
	$250
	
74.9		seasonal temporary food stand
	$250
	
74.10		mobile food unit
	$250
	
74.11	Alcohol
	beer or wine table service
	$150
	
74.12		alcohol service from bar
	$250
	
74.13	Lodging
	less than 25 rooms
	$250
	
74.14		25 to less than 100 rooms
	$300
	
74.15		100 rooms or more
	$450
	
74.16		less than five cabins
	$250
	
74.17		five to less than ten cabins
	$350
	
74.18		ten cabins or more
	$400
	
74.19 	(g) Special event food stands are not required to submit construction or remodeling 
74.20 	plans for review. 
74.21 	(h) Youth camps shall pay an annual single fee for food and lodging as follows:
74.22 	(1) camps with up to 99 campers, $325;
74.23 	(2) camps with 100 to 199 campers, $550; and
74.24 	(3) camps with 200 or more campers, $750.
74.25 	(i) A youth camp which pays fees under paragraph (d) of this subdivision is not 
74.26 	required to pay fees under paragraph (h) of this subdivision.

74.27 	Sec. 7. Minnesota Statutes 2009 Supplement, section 327.15, subdivision 3, is 
74.28 	amended to read:
74.29 		Subd. 3.Fees, manufactured home parks and recreational camping areas. (a) 
74.30 	The following fees are required for manufactured home parks and recreational camping 
74.31 	areas licensed under this chapter. Recreational camping areas and manufactured home 
74.32 	parks shall pay the highest applicable base fee under paragraph (c) (b). The license fee 
74.33 	for new operators of a manufactured home park or recreational camping area previously 
74.34 	licensed under this chapter for the same calendar year is one-half of the appropriate annual 
74.35 	license fee, plus any penalty that may be required. The license fee for operators opening 
74.36 	on or after October 1 is one-half of the appropriate annual license fee, plus any penalty 
74.37 	that may be required.
75.1 	(b) All manufactured home parks and recreational camping areas shall pay the 
75.2 	following annual base fee:
75.3 	(1) a manufactured home park, $150; and
75.4 	(2) a recreational camping area with:
75.5 	(i) 24 or less sites, $50;
75.6 	(ii) 25 to 99 sites, $212; and
75.7 	(iii) 100 or more sites, $300.
75.8 	In addition to the base fee, manufactured home parks and recreational camping areas shall 
75.9 	pay $4 for each licensed site. This paragraph does not apply to special event recreational 
75.10 	camping areas or to. Operators of a manufactured home park or a recreational camping 
75.11 	area also licensed under section 157.16 for the same location shall pay only one base fee, 
75.12 	whichever is the highest of the base fees found in this section or section 157.16.
75.13 	(c) In addition to the fee in paragraph (b), each manufactured home park or 
75.14 	recreational camping area shall pay an additional annual fee for each fee category 
75.15 	specified in this paragraph:
75.16 	(1) Manufactured home parks and recreational camping areas with public swimming 
75.17 	pools and spas shall pay the appropriate fees specified in section 157.16.
75.18 	(2) Individual private sewer or water, $60. "Individual private water" means a fee 
75.19 	category with a water supply other than a community public water supply as defined in 
75.20 	Minnesota Rules, chapter 4720. "Individual private sewer" means a fee category with a 
75.21 	subsurface sewage treatment system which uses subsurface treatment and disposal.
75.22 	(d) The following fees must accompany a plan review application for initial 
75.23 	construction of a manufactured home park or recreational camping area:
75.24 	(1) for initial construction of less than 25 sites, $375;
75.25 	(2) for initial construction of 25 to 99 sites, $400; and
75.26 	(3) for initial construction of 100 or more sites, $500.
75.27 	(e) The following fees must accompany a plan review application when an existing 
75.28 	manufactured home park or recreational camping area is expanded:
75.29 	(1) for expansion of less than 25 sites, $250;
75.30 	(2) for expansion of 25 to 99 sites, $300; and
75.31 	(3) for expansion of 100 or more sites, $450.

75.32 	Sec. 8. HEALTH PLAN AND COUNTY ADMINISTRATIVE COST 
75.33 	REDUCTION; REPORTING REQUIREMENTS.
 75.34 	(a) Minnesota health plans and county-based purchasing plans may complete an 
75.35 	inventory of existing data collection and reporting requirements for health plans and 
76.1 	county-based purchasing plans and submit to the commissioners of health and human 
76.2 	services a list of data, documentation, and reports that:
76.3 	(1) are collected from the same health plan or county-based purchasing plan more 
76.4 	than once;
76.5 	(2) are collected directly from the health plan or county-based purchasing plan but 
76.6 	are available to the state agencies from other sources;
76.7 	(3) are not currently being used by state agencies; or
76.8 	(4) collect similar information more than once in different formats, at different 
76.9 	times, or by more than one state agency.
76.10 	(b) The report to the commissioners may also identify the percentage of health 
76.11 	plan and county-based purchasing plan administrative time and expense attributed to 
76.12 	fulfilling reporting requirements, and include recommendations regarding ways to reduce 
76.13 	duplicative reporting requirements.
76.14 	(c) Upon receipt, the commissioners shall submit the inventory and recommendations 
76.15 	to the chairs of the appropriate legislative committees, along with their comments 
76.16 	and recommendations as to whether any action should be taken by the legislature to 
76.17 	establish a consolidated and streamlined reporting system under which data, reports, and 
76.18 	documentation are collected only once, and only when needed for the state agencies to 
76.19 	fulfill their duties under law and applicable regulations.

76.20 	Sec. 9. TRANSFER.
 76.21 	The powers and duties of the Emergency Medical Services Regulatory Board with 
76.22 	respect to the comprehensive advanced life-support educational program under Minnesota 
76.23 	Statutes, section 144E.37, are transferred to the commissioner of health under Minnesota 
76.24 	Statutes, section 15.039.

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

76.26 	Sec. 10. REVISOR'S INSTRUCTION.
 76.27 	The revisor of statutes shall renumber Minnesota Statutes, section 144E.37, as 
76.28 	Minnesota Statutes, section 144.6062, and make all necessary changes in statutory 
76.29 	cross-references in Minnesota Statutes and Minnesota Rules.

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

77.1 	ARTICLE 5
77.2 	GENERAL ASSISTANCE MEDICAL CARE AMENDMENTS

77.3 	Section 1. Minnesota Statutes 2008, section 256B.0644, as amended by Laws 2010, 
77.4 	chapter 200, article 1, section 6, is amended to read:
77.5 	256B.0644 REIMBURSEMENT UNDER OTHER STATE HEALTH CARE 
77.6 	PROGRAMS.
77.7 	(a) A vendor of medical care, as defined in section 256B.02, subdivision 7, and a 
77.8 	health maintenance organization, as defined in chapter 62D, must participate as a provider 
77.9 	or contractor in the medical assistance program, general assistance medical care program, 
77.10 	and MinnesotaCare as a condition of participating as a provider in health insurance plans 
77.11 	and programs or contractor for state employees established under section 43A.18, the 
77.12 	public employees insurance program under section 43A.316, for health insurance plans 
77.13 	offered to local statutory or home rule charter city, county, and school district employees, 
77.14 	the workers' compensation system under section 176.135, and insurance plans provided 
77.15 	through the Minnesota Comprehensive Health Association under sections 62E.01 to 
77.16 	62E.19. The limitations on insurance plans offered to local government employees shall 
77.17 	not be applicable in geographic areas where provider participation is limited by managed 
77.18 	care contracts with the Department of Human Services.
77.19 	(b) For providers other than health maintenance organizations, participation in the 
77.20 	medical assistance program means that:
77.21 	 (1) the provider accepts new medical assistance, general assistance medical care, 
77.22 	and MinnesotaCare patients;
77.23 	(2) for providers other than dental service providers, at least 20 percent of the 
77.24 	provider's patients are covered by medical assistance, general assistance medical care, 
77.25 	and MinnesotaCare as their primary source of coverage; or
77.26 	(3) for dental service providers, at least ten percent of the provider's patients are 
77.27 	covered by medical assistance, general assistance medical care, and MinnesotaCare as 
77.28 	their primary source of coverage, or the provider accepts new medical assistance and 
77.29 	MinnesotaCare patients who are children with special health care needs. For purposes 
77.30 	of this section, "children with special health care needs" means children up to age 18 
77.31 	who: (i) require health and related services beyond that required by children generally; 
77.32 	and (ii) have or are at risk for a chronic physical, developmental, behavioral, or emotional 
77.33 	condition, including: bleeding and coagulation disorders; immunodeficiency disorders; 
77.34 	cancer; endocrinopathy; developmental disabilities; epilepsy, cerebral palsy, and other 
77.35 	neurological diseases; visual impairment or deafness; Down syndrome and other genetic 
78.1 	disorders; autism; fetal alcohol syndrome; and other conditions designated by the 
78.2 	commissioner after consultation with representatives of pediatric dental providers and 
78.3 	consumers.
78.4 	(c) Patients seen on a volunteer basis by the provider at a location other than 
78.5 	the provider's usual place of practice may be considered in meeting the participation 
78.6 	requirement in this section. The commissioner shall establish participation requirements 
78.7 	for health maintenance organizations. The commissioner shall provide lists of participating 
78.8 	medical assistance providers on a quarterly basis to the commissioner of management and 
78.9 	budget, the commissioner of labor and industry, and the commissioner of commerce. Each 
78.10 	of the commissioners shall develop and implement procedures to exclude as participating 
78.11 	providers in the program or programs under their jurisdiction those providers who do 
78.12 	not participate in the medical assistance program. The commissioner of management 
78.13 	and budget shall implement this section through contracts with participating health and 
78.14 	dental carriers.
78.15 	(d) Any hospital or other provider that is participating in a coordinated care 
78.16 	delivery system under section 256D.031, subdivision 6, or receives payments from the 
78.17 	uncompensated care pool under section 256D.031, subdivision 8, shall not refuse to 
78.18 	provide services to any patient enrolled in general assistance medical care regardless of 
78.19 	the availability or the amount of payment.
78.20 	(e) For purposes of paragraphs (a) and (b), participation in the general assistance 
78.21 	medical care program applies only to pharmacy providers dispensing prescription drugs 
78.22 	according to section 256D.03, subdivision 3.

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

78.24 	Sec. 2. Minnesota Statutes 2008, section 256B.69, subdivision 27, is amended to read:
78.25 		Subd. 27. Information for persons with limited English-language proficiency.
 78.26 	Managed care contracts entered into under this section and sections 256D.03, subdivision 
78.27 	4, paragraph (c), andsection 256L.12 must require demonstration providers to provide 
78.28 	language assistance to enrollees that ensures meaningful access to its programs and 
78.29 	services according to Title VI of the Civil Rights Act and federal regulations adopted 
78.30 	under that law or any guidance from the United States Department of Health and Human 
78.31 	Services. 

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

78.33 	Sec. 3. Minnesota Statutes 2008, section 256B.692, subdivision 1, is amended to read:
79.1 		Subdivision 1.In general. County boards or groups of county boards may elect 
79.2 	to purchase or provide health care services on behalf of persons eligible for medical 
79.3 	assistance and general assistance medical care who would otherwise be required to or may 
79.4 	elect to participate in the prepaid medical assistance or prepaid general assistance medical 
79.5 	care programs according to sectionssection 256B.69and 256D.03. Counties that elect to 
79.6 	purchase or provide health care under this section must provide all services included in 
79.7 	prepaid managed care programs according to sectionssection 256B.69, subdivisions 1 
79.8 	to 22, and 256D.03. County-based purchasing under this section is governed by section 
79.9 	256B.69, unless otherwise provided for under this section.  

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

79.11 	Sec. 4. Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 3, as 
79.12 	amended by Laws 2010, chapter 200, article 1, section 11, is amended to read:
79.13 		Subd. 3.General assistance medical care; eligibility. (a) Beginning April 1, 2010, 
79.14 	the general assistance medical care program shall be administered according to section 
79.15 	256D.031, unless otherwise stated, except for outpatient prescription drug coverage, 
79.16 	which shall continue to be administered under this section and funded under section 
79.17 	256D.031, subdivision 9, beginning June 1, 2010.
79.18 	(b) Outpatient prescription drug coverage under general assistance medical care is 
79.19 	limited to prescription drugs that:
79.20 	(1) are covered under the medical assistance program as described in section 
79.21 	256B.0625, subdivisions 13 and 13d; and
79.22 	(2) are provided by manufacturers that have fully executed general assistance 
79.23 	medical care rebate agreements with the commissioner and comply with the agreements. 
79.24 	Outpatient prescription drug coverage under general assistance medical care must conform 
79.25 	to coverage under the medical assistance program according to section 256B.0625, 
79.26 	subdivisions 13 to 13g 13h.
79.27 	(c) Outpatient prescription drug coverage does not include drugs administered in a 
79.28 	clinic or other outpatient setting.
79.29 	(d) For the period beginning April 1, 2010, to May 31, 2010, general assistance 
79.30 	medical care covers the services listed in subdivision 4.

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

79.32 	Sec. 5. Minnesota Statutes 2008, section 256L.12, subdivision 5, is amended to read:
80.1 		Subd. 5.Eligibility for other state programs. MinnesotaCare enrollees who 
80.2 	become eligible for medical assistance or general assistance medical care will remain in 
80.3 	the same managed care plan if the managed care plan has a contract for that population. 
80.4 	Effective January 1, 1998, MinnesotaCare enrollees who were formerly eligible for 
80.5 	general assistance medical care pursuant to section 256D.03, subdivision 3, within six 
80.6 	months of MinnesotaCare enrollment and were enrolled in a prepaid health plan pursuant 
80.7 	to section 256D.03, subdivision 4, paragraph (c), must remain in the same managed care 
80.8 	plan if the managed care plan has a contract for that population. Managed care plans must 
80.9 	participate in the MinnesotaCare and general assistance medical care programsprogram 
80.10 	under a contract with the Department of Human Services in service areas where they 
80.11 	participate in the medical assistance program.  

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

80.13 	Sec. 6. Laws 2010, chapter 200, article 1, section 12, the effective date, is amended to 
80.14 	read:

80.15 	EFFECTIVE DATE. This section, except for subdivision 4,  is effective for services 
80.16 	rendered on or after April 1, 2010. Subdivision 4 of this section is effective June 1, 2010.

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

80.18 	Sec. 7. Laws 2010, chapter 200, article 1, section 12, subdivision 7, is amended to read:
80.19 		Subd. 7.Payments; rate setting for the hospital coordinated care delivery 
80.20 	system. (a) Effective for general assistance medical care services, with the exception 
80.21 	of outpatient prescription drug coverage, provided on or after June 1, 2010, through a 
80.22 	coordinated care delivery system, the commissioner shall allocate the annual appropriation 
80.23 	for the coordinated care delivery system to hospitals participating under subdivision 
80.24 	6 in quarterly payments, beginning on the first scheduled warrant on or after June 1, 
80.25 	2010. The payment shall be allocated among all hospitals qualified to participate on the 
80.26 	allocation date. Each hospital or group of hospitals shall receive a pro rata share of the 
80.27 	allocation based on the hospital's or group of hospitals' calendar year 2008 payments for 
80.28 	general assistance medical care services, provided that, for the purposes of this allocation, 
80.29 	payments to Hennepin County Medical Center, Regions Hospital, Saint Mary's Medical 
80.30 	Center, and University of Minnesota Medical Center, Fairview, shall be weighted at 110 
80.31 	percent of the actual amount. as follows:
81.1 	(1) each hospital or group of hospitals shall be allocated an initial amount based on 
81.2 	the hospital's or group of hospitals' pro rata share of calendar year 2008 payments for 
81.3 	general assistance medical care services to all participating hospitals;
81.4 	(2) the initial allocations to Hennepin County Medical Center; Regions Hospital; 
81.5 	Saint Mary's Medical Center; and the University of Minnesota Medical Center, Fairview, 
81.6 	shall be increased to 110 percent of the value determined in clause (1);
81.7 	(3) the initial allocation to hospitals not listed in clause (2) shall be reduced a pro rata 
81.8 	amount in order to keep the allocations within the limit of available appropriations; and
81.9 	(4) the amounts determined under clauses (1) to (3) shall be allocated to participating 
81.10 	hospitals.
81.11 	The commissioner may prospectively reallocate payments to participating hospitals on 
81.12 	a biannual basis to ensure that final allocations reflect actual coordinated care delivery 
81.13 	system enrollment. The 2008 base year shall be updated by one calendar year each June 1, 
81.14 	beginning June 1, 2011.
81.15 	(b)  Beginning June 1, 2010, and every quarter beginning in June thereafter, the 
81.16 	commissioner shall make one-third of the quarterly payment in June and the remaining 
81.17 	two-thirds of the quarterly payment in July to each participating hospital or group of 
81.18 	hospitals.
81.19 	(c) In order to be reimbursed under this section, nonhospital providers of health 
81.20 	care services shall contract with one or more hospitals described in paragraph (a) to 
81.21 	provide services to general assistance medical care recipients through the coordinated care 
81.22 	delivery system established by the hospital. The hospital shall reimburse bills submitted 
81.23 	by nonhospital providers participating under this paragraph at a rate negotiated between 
81.24 	the hospital and the nonhospital provider.
81.25 	(c) (d) The commissioner shall apply for federal matching funds under section 
81.26 	256B.199, paragraphs (a) to (d), for expenditures under this subdivision.
81.27 	(d) (e) Outpatient prescription drug coverage is provided in accordance with section 
81.28 	256D.03, subdivision 3, and paid on a fee-for-service basis under subdivision 9.

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

81.30 	Sec. 8. Laws 2010, chapter 200, article 1, section 16, is amended by adding an 
81.31 	effective date to read:

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

81.33 	Sec. 9. Laws 2010, chapter 200, article 1, section 21, is amended to read:
82.1 	Sec. 21. REPEALER.
 82.2 	(a) Minnesota Statutes 2008, sections 256.742; 256.979, subdivision 8; and 256D.03, 
82.3 	subdivision 9, are repealed effective April 1, 2010.
82.4 	(b) Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 4, is repealed 
82.5 	effective AprilJune 1, 2010.
82.6 	(c) Minnesota Statutes 2008, section 256B.195, subdivisions 4 and 5, are repealed 
82.7 	effective for federal fiscal year 2010.
82.8 	(d) Minnesota Statutes 2009 Supplement, section 256B.195, subdivisions 1, 2, and 
82.9 	3, are repealed effective for federal fiscal year 2010.
82.10 	(e) Minnesota Statutes 2008, sections 256L.07, subdivision 6; 256L.15, subdivision 
82.11 	4; and 256L.17, subdivision 7, are repealed January 1, 2011 June 1, 2010.

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

82.13 	Sec. 10. Laws 2010, chapter 200, article 2, section 2, subdivision 1, is amended to read:

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

82.15	Appropriations by Fund
	
82.16		2010
	2011
	
82.17	General
	34,807,000
	118,493,000
	
82.18	Health Care Access
	(42,792,000)
	(211,621,000)
	
82.19 	The amounts that may be spent for each 
82.20 	purpose are specified in the following 
82.21 	subdivisions.
82.22 	Special Revenue Fund Transfers.
82.23 	(a) The commissioner shall transfer the 
82.24 	following amounts from special revenue 
82.25 	fund balances to the general fund by June 
82.26 	30 of each respective fiscal year: $410,000 
82.27 	for fiscal year 2010, and $412,000 for fiscal 
82.28 	year 2011.
82.29 	(b) Actual transfers made under paragraph 
82.30 	(a) must be separately identified and reported 
82.31 	as part of the quarterly reporting of transfers 
82.32 	to the chairs of the relevant senate budget 
82.33 	division and house finance division.

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

83.2 	Sec. 11. Laws 2010, chapter 200, article 2, section 2, subdivision 5, is amended to read:

83.3	Subd. 5.Health Care Management
 					
83.4 	The amounts that may be spent from the 
83.5 	appropriation for each purpose are as follows:

83.6	Health Care Administration.
		(2,998,000)
		(5,270,000)
	
83.7 	Base Adjustment. The general fund base 
83.8 	for health care administration is reduced by 
83.9 	$182,000 $36,000  in fiscal year 2012 and 
83.10 	$182,000 $36,000  in fiscal year 2013.

83.11 	Sec. 12. Laws 2010, chapter 200, article 2, section 2, subdivision 8, is amended to read:

83.12	Subd. 8.Transfers
 					
83.13 	The commissioner must transfer $29,538,000 
83.14 	in fiscal year 2010 and $18,462,000 in fiscal 
83.15 	year 2011 from the health care access fund to 
83.16 	the general fund. This is a onetime transfer.
83.17 	The commissioner must transfer $4,800,000 
83.18 	from the consolidated chemical dependency 
83.19 	treatment fund to the general fund by June 
83.20 	30, 2010.
83.21 	Compulsive Gambling Special Revenue
83.22 	Administration.The lottery prize fund 
83.23 	appropriation for compulsive gambling 
83.24 	administration is reduced by $6,000 for fiscal 
83.25 	year 2010 and $4,000 for fiscal year 2011
83.26 	must be transferred from the lottery prize 
83.27 	fund appropriation for compulsive gambling 
83.28 	administration to the general fund by June 
83.29 	30 of each respective fiscal year. These are 
83.30 	onetime reductions.

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

84.1 	ARTICLE 6
84.2 	MISCELLANEOUS

84.3 	Section 1. [62Q.545] COVERAGE OF PRIVATE DUTY NURSING SERVICES.
84.4 	(a) Private duty nursing services, as provided under section 256B.0625, subdivision 
84.5 	7, with the exception of section 256B.0654, subdivision 4, shall be covered under a health 
84.6 	plan for persons who are concurrently covered by both the health plan  and enrolled in 
84.7 	medical assistance under chapter 256B.
84.8 	(b) For purposes of this section, a period of private duty nursing services may 
84.9 	be subject to the co-payment, coinsurance, deductible, or other enrollee cost-sharing 
84.10 	requirements that apply under the health plan. Cost-sharing requirements for private 
84.11 	duty nursing services must not place a greater financial burden on the insured or enrollee 
84.12 	than those requirements applied by the health plan to other similar services or benefits. 
84.13 	Nothing in this section is intended to prevent a health plan company from requiring 
84.14 	prior authorization by the health plan company for such services as required by section 
84.15 	256B.0625, subdivision 7, or use of contracted providers under the applicable provisions 
84.16 	of the health plan.

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

84.19 	Sec. 2. [137.32] MINNESOTA COUPLES ON THE BRINK PROJECT.
84.20 		Subdivision 1.Establishment. Within the limits of available appropriations, the 
84.21 	Board of Regents of the University of Minnesota is requested to develop and implement 
84.22 	a Minnesota couples on the brink project, as provided for in this section. The regents 
84.23 	may administer the project with federal grants, state appropriations, and in-kind services 
84.24 	received for this purpose.
84.25 		Subd. 2.Purpose. The purpose of the project is to develop, evaluate, and 
84.26 	disseminate best practices for promoting successful reconciliation between married 
84.27 	persons who are considering or have commenced a marriage dissolution proceeding and 
84.28 	who choose to pursue reconciliation.
84.29 		Subd. 3.Implementation. The regents shall:
84.30 	(1) enter into contracts or manage a grant process for implementation of the project; 
84.31 	and
84.32 	(2) develop and implement an evaluation component for the project.

85.1 	Sec. 3. Minnesota Statutes 2009 Supplement, section 150A.106, subdivision 1, is 
85.2 	amended to read:
85.3 		Subdivision 1.General. (a) In order to be certified by the board to practice as an 
85.4 	advanced dental therapist, a person must:
85.5 	(1) complete a dental therapy education program;
85.6 	(2) pass an examination to demonstrate competency under the dental therapy scope 
85.7 	of practice;
85.8 	(3) be licensed as a dental therapist;
85.9 	(4) complete 2,000 hours of dental therapy clinical practice under direct or indirect 
85.10 	supervision;
85.11 	(5) graduate from a master's advanced dental therapy education program;
85.12 	(6) pass a board-approved certification examination to demonstrate competency 
85.13 	under the advanced scope of practice; and
85.14 	(7) submit an application for certification as prescribed by the board.
85.15 	(b) A dental therapy educational program may offer a combined dental therapy 
85.16 	and advanced dental therapy program if the combined program was in existence on 
85.17 	April 1, 2010. The combined program is exempt from board approval if the requirement 
85.18 	of section 150A.06, subdivision 1d, paragraph (b) is met. A graduate of a combined 
85.19 	program satisfies the requirements of paragraph (a), clauses (1) and (5), if the degree upon 
85.20 	graduation is a master's degree and the board shall issue a dental therapy license and an 
85.21 	advanced practice certification to a graduate of a combined program if the other licensure 
85.22 	and certification requirements are satisfied. As part of the combined program, the clinical 
85.23 	practice requirements in paragraph (a), clause (4), may be commenced before a dental 
85.24 	therapy license is granted.

85.25 	Sec. 4. Minnesota Statutes 2009 Supplement, section 150A.06, subdivision 1d, is 
85.26 	amended to read:
85.27 		Subd. 1d.Dental therapists. (a) A person of good moral character who has 
85.28 	graduated with a baccalaureate degree or a master's degree from a dental therapy education 
85.29 	program that has been approved by the board or accredited by the American Dental 
85.30 	Association Commission on Dental Accreditation or another board-approved national 
85.31 	accreditation organization may apply for licensure. 
85.32 	(b) Notwithstanding paragraph (a), a dental therapy education program in existence 
85.33 	on April 1, 2010, is exempt from the requirement of board approval and applicants who 
85.34 	have graduated from the program shall be licensed if the requirements of paragraph (c) are 
86.1 	satisfied. Programs identified in this paragraph must become accredited within two years 
86.2 	after the establishment of a recognized national accreditation program for dental therapists.
86.3 	(c) The applicant must submit an application and fee as prescribed by the board and 
86.4 	a diploma or certificate from a dental therapy education program. Prior to being licensed, 
86.5 	the applicant must pass a comprehensive, competency-based clinical examination that is 
86.6 	approved by the board and administered independently of an institution providing dental 
86.7 	therapy education. The applicant must also pass an examination testing the applicant's 
86.8 	knowledge of the Minnesota laws and rules relating to the practice of dentistry. An 
86.9 	applicant who has failed the clinical examination twice is ineligible to retake the clinical 
86.10 	examination until further education and training are obtained as specified by the board. A 
86.11 	separate, nonrefundable fee may be charged for each time a person applies. An applicant 
86.12 	who passes the examination in compliance with subdivision 2b, abides by professional 
86.13 	ethical conduct requirements, and meets all the other requirements of the board shall 
86.14 	be licensed as a dental therapist.

86.15 	Sec. 5. Minnesota Statutes 2008, section 152.126, as amended by Laws 2009, chapter 
86.16 	79, article 11, sections 9, 10, and 11, is amended to read:
86.17 	152.126 SCHEDULE II AND III CONTROLLED SUBSTANCES 
86.18 	PRESCRIPTION ELECTRONIC REPORTING SYSTEM.
86.19 		Subdivision 1.Definitions. For purposes of this section, the terms defined in this 
86.20 	subdivision have the meanings given.
86.21 	(a) "Board" means the Minnesota State Board of Pharmacy established under 
86.22 	chapter 151.
86.23 	(b) "Controlled substances" means those substances listed in section 152.02, 
86.24 	subdivisions 3 to 5, and those substances defined by the board pursuant to section 152.02, 
86.25 	subdivisions 7, 8, and 12.
86.26 	(c) "Dispense" or "dispensing" has the meaning given in section 151.01, subdivision 
86.27 	30. Dispensing does not include the direct administering of a controlled substance to a 
86.28 	patient by a licensed health care professional.
86.29 	(d) "Dispenser" means a person authorized by law to dispense a controlled substance, 
86.30 	pursuant to a valid prescription. For the purposes of this section, a dispenser does not 
86.31 	include a licensed hospital pharmacy that distributes controlled substances for inpatient 
86.32 	hospital care or a veterinarian who is dispensing prescriptions under section 156.18.
86.33 	(e) "Prescriber" means a licensed health care professional who is authorized to 
86.34 	prescribe a controlled substance under section 152.12, subdivision 1.
86.35 	(f) "Prescription" has the meaning given in section 151.01, subdivision 16.
87.1 		Subd. 1a.Treatment of intractable pain. This section is not intended to limit or 
87.2 	interfere with the legitimate prescribing of controlled substances for pain. No prescriber 
87.3 	shall be subject to disciplinary action by a health-related licensing board for prescribing a 
87.4 	controlled substance according to the provisions of section 152.125.
87.5 		Subd. 2.Prescription electronic reporting system. (a) The board shall establish 
87.6 	by January 1, 2010, an electronic system for reporting the information required under 
87.7 	subdivision 4 for all controlled substances dispensed within the state. 
87.8 	(b) The board may contract with a vendor for the purpose of obtaining technical 
87.9 	assistance in the design, implementation, operation, and maintenance of the electronic 
87.10 	reporting system. 
87.11 		Subd. 3.Prescription Electronic Reporting Advisory Committee. (a) The 
87.12 	board shall convene an advisory committee. The committee must include at least one 
87.13 	representative of:
87.14 	(1) the Department of Health;
87.15 	(2) the Department of Human Services;
87.16 	(3) each health-related licensing board that licenses prescribers;
87.17 	(4) a professional medical association, which may include an association of pain 
87.18 	management and chemical dependency specialists;
87.19 	(5) a professional pharmacy association;
87.20 	(6) a professional nursing association;
87.21 	(7) a professional dental association;
87.22 	(8) a consumer privacy or security advocate; and
87.23 	(9) a consumer or patient rights organization.
87.24 	(b) The advisory committee shall advise the board on the development and operation 
87.25 	of the electronic reporting system, including, but not limited to:
87.26 	(1) technical standards for electronic prescription drug reporting;
87.27 	(2) proper analysis and interpretation of prescription monitoring data; and
87.28 	(3) an evaluation process for the program.
87.29 	(c) The Board of Pharmacy, after consultation with the advisory committee, shall 
87.30 	present recommendations and draft legislation on the issues addressed by the advisory 
87.31 	committee under paragraph (b), to the legislature by December 15, 2007.
87.32 		Subd. 4.Reporting requirements; notice. (a) Each dispenser must submit the 
87.33 	following data to the board or its designated vendor, subject to the notice required under 
87.34 	paragraph (d):
87.35 	(1) name of the prescriber;
87.36 	(2) national provider identifier of the prescriber;
88.1 	(3) name of the dispenser;
88.2 	(4) national provider identifier of the dispenser;
88.3 	(5) prescription number;
88.4 	(6) name of the patient for whom the prescription was written;
88.5 	(7) address of the patient for whom the prescription was written;
88.6 	(8) date of birth of the patient for whom the prescription was written;
88.7 	(9) date the prescription was written;
88.8 	(10) date the prescription was filled;
88.9 	(11) name and strength of the controlled substance;
88.10 	(12) quantity of controlled substance prescribed;
88.11 	(13) quantity of controlled substance dispensed; and
88.12 	(14) number of days supply.
88.13 	(b) The dispenser must submit the required information by a procedure and in a 
88.14 	format established by the board. The board may allow dispensers to omit data listed in this 
88.15 	subdivision or may require the submission of data not listed in this subdivision provided 
88.16 	the omission or submission is necessary for the purpose of complying with the electronic 
88.17 	reporting or data transmission standards of the American Society for Automation in 
88.18 	Pharmacy, the National Council on Prescription Drug Programs, or other relevant national 
88.19 	standard-setting body.
88.20 	(c) A dispenser is not required to submit this data for those controlled substance 
88.21 	prescriptions dispensed for:
88.22 	(1) individuals residing in licensed skilled nursing or intermediate care facilities;
88.23 	(2) individuals receiving assisted living services under chapter 144G or through a 
88.24 	medical assistance home and community-based waiver;
88.25 	(3) individuals receiving medication intravenously;
88.26 	(4) individuals receiving hospice and other palliative or end-of-life care; and
88.27 	(5) individuals receiving services from a home care provider regulated under chapter 
88.28 	144A.
88.29 	(d) A dispenser must not submit data under this subdivision unless a conspicuous 
88.30 	notice of the reporting requirements of this section is given to the patient for whom the 
88.31 	prescription was written.
88.32 		Subd. 5.Use of data by board. (a) The board shall develop and maintain a database 
88.33 	of the data reported under subdivision 4. The board shall maintain data that could identify 
88.34 	an individual prescriber or dispenser in encrypted form. The database may be used by 
88.35 	permissible users identified under subdivision 6 for the identification of:
89.1 	(1) individuals receiving prescriptions for controlled substances from prescribers 
89.2 	who subsequently obtain controlled substances from dispensers in quantities or with a 
89.3 	frequency inconsistent with generally recognized standards of use for those controlled 
89.4 	substances, including standards accepted by national and international pain management 
89.5 	associations; and
89.6 	(2) individuals presenting forged or otherwise false or altered prescriptions for 
89.7 	controlled substances to dispensers.
89.8 	(b) No permissible user identified under subdivision 6 may access the database 
89.9 	for the sole purpose of identifying prescribers of controlled substances for unusual or 
89.10 	excessive prescribing patterns without a valid search warrant or court order.
89.11 	(c) No personnel of a state or federal occupational licensing board or agency may 
89.12 	access the database for the purpose of obtaining information to be used to initiate or 
89.13 	substantiate a disciplinary action against a prescriber.
89.14 	(d) Data reported under subdivision 4 shall be retained by the board in the database 
89.15 	for a 12-month period, and shall be removed from the database no later than 12 months 
89.16 	from the datethe last day of the month during which the data was received.
89.17 		Subd. 6.Access to reporting system data. (a) Except as indicated in this 
89.18 	subdivision, the data submitted to the board under subdivision 4 is private data on 
89.19 	individuals as defined in section 13.02, subdivision 12, and not subject to public disclosure.
89.20 	(b) Except as specified in subdivision 5, the following persons shall be considered 
89.21 	permissible users and may access the data submitted under subdivision 4 in the same or 
89.22 	similar manner, and for the same or similar purposes, as those persons who are authorized 
89.23 	to access similar private data on individuals under federal and state law:
89.24 	(1) a prescriber or an agent or employee of the prescriber to whom the prescriber has 
89.25 	delegated the task of accessing the data, to the extent the information relates specifically to 
89.26 	a current patient, to whom the prescriber is prescribing or considering prescribing any 
89.27 	controlled substance and with the provision that the prescriber remains responsible for the 
89.28 	use or misuse of data accessed by a delegated agent or employee;
89.29 	(2) a dispenser or an agent or employee of the dispenser to whom the dispenser has 
89.30 	delegated the task of accessing the data, to the extent the information relates specifically 
89.31 	to a current patient to whom that dispenser is dispensing or considering dispensing any 
89.32 	controlled substance and with the provision that the dispenser remains responsible for the 
89.33 	use or misuse of data accessed by a delegated agent or employee;
89.34 	(3) an individual who is the recipient of a controlled substance prescription for 
89.35 	which data was submitted under subdivision 4, or a guardian of the individual, parent or 
90.1 	guardian of a minor, or health care agent of the individual acting under a health care 
90.2 	directive under chapter 145C;
90.3 	(4) personnel of the board specifically assigned to conduct a bona fide investigation 
90.4 	of a specific licensee;
90.5 	(5) personnel of the board engaged in the collection of controlled substance 
90.6 	prescription information as part of the assigned duties and responsibilities under this 
90.7 	section;
90.8 	(6) authorized personnel of a vendor under contract with the board who are engaged 
90.9 	in the design, implementation, operation, and maintenance of the electronic reporting 
90.10 	system as part of the assigned duties and responsibilities of their employment, provided 
90.11 	that access to data is limited to the minimum amount necessary to carry out such duties 
90.12 	and responsibilities;
90.13 	(7) federal, state, and local law enforcement authorities acting pursuant to a valid 
90.14 	search warrant; and
90.15 	(8) personnel of the medical assistance program assigned to use the data collected 
90.16 	under this section to identify recipients whose usage of controlled substances may warrant 
90.17 	restriction to a single primary care physician, a single outpatient pharmacy, or a single 
90.18 	hospital.
90.19 	For purposes of clause (3), access by an individual includes persons in the definition 
90.20 	of an individual under section 13.02.
90.21 	(c) Any permissible user identified in paragraph (b), who directly accesses 
90.22 	the data electronically, shall implement and maintain a comprehensive information 
90.23 	security program that contains administrative, technical, and physical safeguards that 
90.24 	are appropriate to the user's size and complexity, and the sensitivity of the personal 
90.25 	information obtained. The permissible user shall identify reasonably foreseeable internal 
90.26 	and external risks to the security, confidentiality, and integrity of personal information 
90.27 	that could result in the unauthorized disclosure, misuse, or other compromise of the 
90.28 	information and assess the sufficiency of any safeguards in place to control the risks.
90.29 	(d) The board shall not release data submitted under this section unless it is provided 
90.30 	with evidence, satisfactory to the board, that the person requesting the information is 
90.31 	entitled to receive the data.
90.32 	(e) The board shall not release the name of a prescriber without the written consent 
90.33 	of the prescriber or a valid search warrant or court order. The board shall provide a 
90.34 	mechanism for a prescriber to submit to the board a signed consent authorizing the release 
90.35 	of the prescriber's name when data containing the prescriber's name is requested.
91.1 	(f) The board shall maintain a log of all persons who access the data and shall ensure 
91.2 	that any permissible user complies with paragraph (c) prior to attaining direct access to 
91.3 	the data.
91.4 	(g) Section 13.05, subdivision 6, shall apply to any contract the board enters into 
91.5 	pursuant to subdivision 2. A vendor shall not use data collected under this section for 
91.6 	any purpose not specified in this section.
91.7 		Subd. 7.Disciplinary action. (a) A dispenser who knowingly fails to submit data to 
91.8 	the board as required under this section is subject to disciplinary action by the appropriate 
91.9 	health-related licensing board.
91.10 	(b) A prescriber or dispenser authorized to access the data who knowingly discloses 
91.11 	the data in violation of state or federal laws relating to the privacy of health care data 
91.12 	shall be subject to disciplinary action by the appropriate health-related licensing board, 
91.13 	and appropriate civil penalties.
91.14 		Subd. 8.Evaluation and reporting. (a) The board shall evaluate the prescription 
91.15 	electronic reporting system to determine if the system is negatively impacting appropriate 
91.16 	prescribing practices of controlled substances. The board may contract with a vendor to 
91.17 	design and conduct the evaluation.
91.18 	(b) The board shall submit the evaluation of the system to the legislature by January
91.19 	July 15, 2011.
91.20 		Subd. 9.Immunity from liability; no requirement to obtain information. (a) A 
91.21 	pharmacist, prescriber, or other dispenser making a report to the program in good faith 
91.22 	under this section is immune from any civil, criminal, or administrative liability, which 
91.23 	might otherwise be incurred or imposed as a result of the report, or on the basis that the 
91.24 	pharmacist or prescriber did or did not seek or obtain or use information from the program.
91.25 	(b) Nothing in this section shall require a pharmacist, prescriber, or other dispenser 
91.26 	to obtain information about a patient from the program, and the pharmacist, prescriber, 
91.27 	or other dispenser, if acting in good faith, is immune from any civil, criminal, or 
91.28 	administrative liability that might otherwise be incurred or imposed for requesting, 
91.29 	receiving, or using information from the program.
91.30 		Subd. 10.Funding. (a) The board may seek grants and private funds from nonprofit 
91.31 	charitable foundations, the federal government, and other sources to fund the enhancement 
91.32 	and ongoing operations of the prescription electronic reporting system established under 
91.33 	this section. Any funds received shall be appropriated to the board for this purpose. The 
91.34 	board may not expend funds to enhance the program in a way that conflicts with this 
91.35 	section without seeking approval from the legislature.
92.1 	(b) The administrative services unit for the health-related licensing boards shall 
92.2 	apportion between the Board of Medical Practice, the Board of Nursing, the Board of 
92.3 	Dentistry, the Board of Podiatric Medicine, the Board of Optometry, and the Board 
92.4 	of Pharmacy an amount to be paid through fees by each respective board. The amount 
92.5 	apportioned to each board shall equal each board's share of the annual appropriation to 
92.6 	the Board of Pharmacy from the state government special revenue fund for operating the 
92.7 	prescription electronic reporting system under this section. Each board's apportioned 
92.8 	share shall be based on the number of prescribers or dispensers that each board identified 
92.9 	in this paragraph licenses as a percentage of the total number of prescribers and dispensers 
92.10 	licensed collectively by these boards. Each respective board may adjust the fees that the 
92.11 	boards are required to collect to compensate for the amount apportioned to each board by 
92.12 	the administrative services unit.

92.13 	Sec. 6. Minnesota Statutes 2008, section 246.18, is amended by adding a subdivision 
92.14 	to read:
92.15 		Subd. 8.State-operated services account. The state-operated services account is 
92.16 	established in the special revenue fund. Revenue generated by new state-operated services 
92.17 	listed under this section established after July 1, 2010, that are not enterprise activities must 
92.18 	be deposited into the state-operated services account, unless otherwise specified in law:
92.19 	(1) intensive residential treatment services;
92.20 	(2) foster care services; and
92.21 	(3) psychiatric extensive recovery treatment services.

92.22 	Sec. 7. Minnesota Statutes 2008, section 254B.01, subdivision 2, is amended to read:
92.23 		Subd. 2.American Indian. For purposes of services provided under section 
92.24 	254B.09, subdivision 7 8, "American Indian" means a person who is a member of an 
92.25 	Indian tribe, and the commissioner shall use the definitions of "Indian" and "Indian tribe" 
92.26 	and "Indian organization" provided in Public Law 93-638. For purposes of services 
92.27 	provided under section 254B.09, subdivision 4 6, "American Indian" means a resident of 
92.28 	federally recognized tribal lands who is recognized as an Indian person by the federally 
92.29 	recognized tribal governing body.  

92.30 	Sec. 8. Minnesota Statutes 2008, section 254B.02, subdivision 1, is amended to read:
92.31 		Subdivision 1.Chemical dependency treatment allocation. The chemical 
92.32 	dependency funds appropriated for allocation treatment appropriation  shall be placed in 
92.33 	a special revenue account. The commissioner shall annually transfer funds from the 
93.1 	chemical dependency fund to pay for operation of the drug and alcohol abuse normative 
93.2 	evaluation system and to pay for all costs incurred by adding two positions for licensing 
93.3 	of chemical dependency treatment and rehabilitation programs located in hospitals for 
93.4 	which funds are not otherwise appropriated. Six percent of the remaining money must 
93.5 	be reserved for tribal allocation under section 254B.09, subdivisions 4 and 5. The 
93.6 	commissioner shall annually divide the money available in the chemical dependency 
93.7 	fund that is not held in reserve by counties from a previous allocation, or allocated to the 
93.8 	American Indian chemical dependency tribal account. Six percent of the remaining money 
93.9 	must be reserved for the nonreservation American Indian chemical dependency allocation 
93.10 	for treatment of American Indians by eligible vendors under section 254B.05, subdivision 
93.11 	1. The remainder of the money must be allocated among the counties according to the 
93.12 	following formula, using state demographer data and other data sources determined by 
93.13 	the commissioner: 
93.14 	(a) For purposes of this formula, American Indians and children under age 14 are 
93.15 	subtracted from the population of each county to determine the restricted population.
93.16 	(b) The amount of chemical dependency fund expenditures for entitled persons for 
93.17 	services not covered by prepaid plans governed by section 256B.69 in the previous year is 
93.18 	divided by the amount of chemical dependency fund expenditures for entitled persons for 
93.19 	all services to determine the proportion of exempt service expenditures for each county. 
93.20 	(c) The prepaid plan months of eligibility is multiplied by the proportion of exempt 
93.21 	service expenditures to determine the adjusted prepaid plan months of eligibility for 
93.22 	each county.
93.23 	(d) The adjusted prepaid plan months of eligibility is added to the number of 
93.24 	restricted population fee for service months of eligibility for the Minnesota family 
93.25 	investment program, general assistance, and medical assistance and divided by the county 
93.26 	restricted population to determine county per capita months of covered service eligibility.
93.27 	(e) The number of adjusted prepaid plan months of eligibility for the state is added 
93.28 	to the number of fee for service months of eligibility for the Minnesota family investment 
93.29 	program, general assistance, and medical assistance for the state restricted population and 
93.30 	divided by the state restricted population to determine state per capita months of covered 
93.31 	service eligibility.
93.32 	(f) The county per capita months of covered service eligibility is divided by the 
93.33 	state per capita months of covered service eligibility to determine the county welfare 
93.34 	caseload factor.
94.1 	(g) The median married couple income for the most recent three-year period 
94.2 	available for the state is divided by the median married couple income for the same period 
94.3 	for each county to determine the income factor for each county.
94.4 	(h) The county restricted population is multiplied by the sum of the county welfare 
94.5 	caseload factor and the county income factor to determine the adjusted population.
94.6 	(i) $15,000 shall be allocated to each county.
94.7 	(j) The remaining funds shall be allocated proportional to the county adjusted 
94.8 	population  in the special revenue account must be used according to the requirements 
94.9 	in this chapter.

94.10 	Sec. 9. Minnesota Statutes 2008, section 254B.02, subdivision 5, is amended to read:
94.11 		Subd. 5.Administrative adjustment. The commissioner may make payments to 
94.12 	local agencies from money allocated under this section to support administrative activities 
94.13 	under sections 254B.03 and 254B.04. The administrative payment must not exceed 
94.14 	the lesser of: (1) five percent of the first $50,000, four percent of the next $50,000, and 
94.15 	three percent of the remaining payments for services from the allocation special revenue 
94.16 	account according to subdivision 1; or (2) the local agency administrative payment for 
94.17 	the fiscal year ending June 30, 2009, adjusted in proportion to the statewide change in 
94.18 	the appropriation for this chapter. 

94.19 	Sec. 10. Minnesota Statutes 2008, section 254B.03, subdivision 4, is amended to read:
94.20 		Subd. 4.Division of costs. Except for services provided by a county under 
94.21 	section 254B.09, subdivision 1, or services provided under section 256B.69 or 256D.03, 
94.22 	subdivision 4, paragraph (b), the county shall, out of local money, pay the state for 
94.23 	15 16.14 percent of the cost of chemical dependency services, including those services 
94.24 	provided to persons eligible for medical assistance under chapter 256B and general 
94.25 	assistance medical care under chapter 256D. Counties may use the indigent hospitalization 
94.26 	levy for treatment and hospital payments made under this section. Fifteen 16.14 percent 
94.27 	of any state collections from private or third-party pay, less 15 percent of for the cost 
94.28 	of payment and collections, must be distributed to the county that paid for a portion of 
94.29 	the treatment under this section. If all funds allocated according to section 254B.02 are 
94.30 	exhausted by a county and the county has met or exceeded the base level of expenditures 
94.31 	under section 254B.02, subdivision 3, the county shall pay the state for 15 percent of the 
94.32 	costs paid by the state under this section. The commissioner may refuse to pay state funds 
94.33 	for services to persons not eligible under section 254B.04, subdivision 1, if the county 
94.34 	financially responsible for the persons has exhausted its allocation. 

95.1 	Sec. 11. Minnesota Statutes 2008, section 254B.03, is amended by adding a subdivision 
95.2 	to read:
95.3 		Subd. 4a.Division of costs for medical assistance services. Notwithstanding 
95.4 	subdivision 4, for chemical dependency services provided on or after October 1, 2008, and 
95.5 	reimbursed by medical assistance, the county share is 30 percent of the nonfederal share.

95.6 	Sec. 12. Minnesota Statutes 2008, section 254B.05, subdivision 4, is amended to read:
95.7 		Subd. 4.Regional treatment centers. Regional treatment center chemical 
95.8 	dependency treatment units are eligible vendors. The commissioner may expand the 
95.9 	capacity of chemical dependency treatment units beyond the capacity funded by direct 
95.10 	legislative appropriation to serve individuals who are referred for treatment by counties 
95.11 	and whose treatment will be paid for with a county's allocation under section 254B.02 by 
95.12 	funding under this chapter or other funding sources. Notwithstanding the provisions of 
95.13 	sections 254B.03 to 254B.041, payment for any person committed at county request to 
95.14 	a regional treatment center under chapter 253B for chemical dependency treatment and 
95.15 	determined to be ineligible under the chemical dependency consolidated treatment fund, 
95.16 	shall become the responsibility of the county.  

95.17 	Sec. 13. Minnesota Statutes 2008, section 254B.06, subdivision 2, is amended to read:
95.18 		Subd. 2.Allocation of collections. The commissioner shall allocate all federal 
95.19 	financial participation collections to the reserve fund under section 254B.02, subdivision 3
95.20 	a special revenue account. The commissioner shall retain 85 allocate 83.86 percent of 
95.21 	patient payments and third-party payments to the special revenue account and allocate 
95.22 	the collections to the treatment allocation for the county that is financially responsible 
95.23 	for the person. Fifteen 16.14 percent of patient and third-party payments must be paid
95.24 	to the county financially responsible for the patient. Collections for patient payment and 
95.25 	third-party payment for services provided under section 254B.09 shall be allocated to the 
95.26 	allocation of the tribal unit which placed the person. Collections of federal financial 
95.27 	participation for services provided under section 254B.09 shall be allocated to the tribal 
95.28 	reserve account under section 254B.09, subdivision 5.

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

96.3 	Sec. 15. Minnesota Statutes 2009 Supplement, section 517.08, subdivision 1b, is 
96.4 	amended to read:
96.5 		Subd. 1b.Term of license; fee; premarital education. (a) The local registrar 
96.6 	shall examine upon oath the parties applying for a license relative to the legality of the 
96.7 	contemplated marriage. If one party is unable to appear in person, the party appearing 
96.8 	may complete the absent applicant's information. The local registrar shall provide a copy 
96.9 	of the marriage application to the party who is unable to appear, who must verify the 
96.10 	accuracy of the party's information in a notarized statement. The marriage license must 
96.11 	not be released until the verification statement has been received by the local registrar. If 
96.12 	at the expiration of a five-day period, on being satisfied that there is no legal impediment 
96.13 	to it, including the restriction contained in section 259.13, the local registrar shall issue 
96.14 	the license, containing the full names of the parties before and after marriage, and county 
96.15 	and state of residence, with the county seal attached, and make a record of the date of 
96.16 	issuance. The license shall be valid for a period of six months. Except as provided in 
96.17 	paragraph (c), the local registrar shall collect from the applicant a fee of $110 $115 for 
96.18 	administering the oath, issuing, recording, and filing all papers required, and preparing 
96.19 	and transmitting to the state registrar of vital statistics the reports of marriage required 
96.20 	by this section. If the license should not be used within the period of six months due to 
96.21 	illness or other extenuating circumstances, it may be surrendered to the local registrar for 
96.22 	cancellation, and in that case a new license shall issue upon request of the parties of the 
96.23 	original license without fee. A local registrar who knowingly issues or signs a marriage 
96.24 	license in any manner other than as provided in this section shall pay to the parties 
96.25 	aggrieved an amount not to exceed $1,000.
96.26 	(b) In case of emergency or extraordinary circumstances, a judge of the district court 
96.27 	of the county in which the application is made may authorize the license to be issued at 
96.28 	any time before expiration of the five-day period required under paragraph (a). A waiver 
96.29 	of the five-day waiting period must be in the following form:
96.30 	STATE OF MINNESOTA, COUNTY OF .................... (insert county name)
96.31 	APPLICATION FOR WAIVER OF MARRIAGE LICENSE WAITING PERIOD:
96.32 	................................................................................. (legal names of the applicants)
96.33 	Represent and state as follows:
96.34 	That on ......................... (date of application) the applicants applied to the local 
96.35 	registrar of the above-named county for a license to marry.
97.1 	That it is necessary that the license be issued before the expiration of five days 
97.2 	from the date of the application by reason of the following: (insert reason for requesting 
97.3 	waiver of waiting period)
97.4 	.............................................................................................................
97.5 	.............................................................................................................
97.6 	.............................................................................................................
97.7 	WHEREAS, the applicants request that the judge waive the required five-day 
97.8 	waiting period and the local registrar be authorized and directed to issue the marriage 
97.9 	license immediately.
97.10 	Date: .............................
97.11 	.......................................................................................
97.12 	.......................................................................................
97.13 	(Signatures of applicants)
97.14 	Acknowledged before me on this ....... day of .................... .
97.15 	..........................................
97.16 	NOTARY PUBLIC
97.17 	COURT ORDER AND AUTHORIZATION:
97.18 	STATE OF MINNESOTA, COUNTY OF .................... (insert county name)
97.19 	After reviewing the above application, I am satisfied that an emergency or 
97.20 	extraordinary circumstance exists that justifies the issuance of the marriage license before 
97.21 	the expiration of five days from the date of the application. IT IS HEREBY ORDERED 
97.22 	that the local registrar is authorized and directed to issue the license forthwith.
97.23 	.....................................................
97.24 	................................ (judge of district court)
97.25 	................................ (date).
97.26 	(c) The marriage license fee for parties who have completed at least 12 hours of 
97.27 	premarital education is $40. In order to qualify for the reduced license fee, the parties 
97.28 	must submit at the time of applying for the marriage license a signed, dated, and notarized 
97.29 	statement from the person who provided the premarital education on their letterhead 
97.30 	confirming that it was received. The premarital education must be provided by a licensed 
97.31 	or ordained minister or the minister's designee, a person authorized to solemnize marriages 
97.32 	under section 517.18, or a person authorized to practice marriage and family therapy under 
97.33 	section 148B.33. The education must include the use of a premarital inventory and the 
97.34 	teaching of communication and conflict management skills.
97.35 	(d) The statement from the person who provided the premarital education under 
97.36 	paragraph (b) must be in the following form:
98.1 	"I, .......................... (name of educator), confirm that .......................... (names of 
98.2 	both parties) received at least 12 hours of premarital education that included the use of a 
98.3 	premarital inventory and the teaching of communication and conflict management skills. 
98.4 	I am a licensed or ordained minister, a person authorized to solemnize marriages under 
98.5 	Minnesota Statutes, section 517.18, or a person licensed to practice marriage and family 
98.6 	therapy under Minnesota Statutes, section 148B.33."
98.7 	The names of the parties in the educator's statement must be identical to the legal 
98.8 	names of the parties as they appear in the marriage license application. Notwithstanding 
98.9 	section 138.17, the educator's statement must be retained for seven years, after which 
98.10 	time it may be destroyed.
98.11 	(e) If section 259.13 applies to the request for a marriage license, the local registrar 
98.12 	shall grant the marriage license without the requested name change. Alternatively, the local 
98.13 	registrar may delay the granting of the marriage license until the party with the conviction:
98.14 	(1) certifies under oath that 30 days have passed since service of the notice for a 
98.15 	name change upon the prosecuting authority and, if applicable, the attorney general and no 
98.16 	objection has been filed under section 259.13; or
98.17 	(2) provides a certified copy of the court order granting it. The parties seeking the 
98.18 	marriage license shall have the right to choose to have the license granted without the 
98.19 	name change or to delay its granting pending further action on the name change request.

98.20 	Sec. 16. Minnesota Statutes 2008, section 517.08, subdivision 1c, as amended by Laws 
98.21 	2010, chapter 200, article 1, section 17, is amended to read:
98.22 		Subd. 1c.Disposition of license fee. (a) Of the marriage license fee collected 
98.23 	pursuant to subdivision 1b, paragraph (a), $25 must be retained by the county. The 
98.24 	local registrar must pay $85 $90 to the commissioner of management and budget to be 
98.25 	deposited as follows:
98.26 	(1) $55 in the general fund;
98.27 	(2) $3 in the state government special revenue fund to be appropriated to the 
98.28 	commissioner of public safety for parenting time centers under section 119A.37;
98.29 	(3) $2 in the special revenue fund to be appropriated to the commissioner of health 
98.30 	for developing and implementing the MN ENABL program under section 145.9255; and
98.31 	(4) $25 in the special revenue fund is appropriated to the commissioner of 
98.32 	employment and economic development for the displaced homemaker program under 
98.33 	section 116L.96; and
99.1 	(5) $5 in the special revenue fund, which is appropriated to the Board of Regents 
99.2 	of the University of Minnesota for the Minnesota couples on the brink project under 
99.3 	section 137.32.
99.4 	(b) Of the $40 fee under subdivision 1b, paragraph (b), $25 must be retained by the 
99.5 	county. The local registrar must pay $15 to the commissioner of management and budget 
99.6 	to be deposited as follows:
99.7 	(1) $5 as provided in paragraph (a), clauses (2) and (3); and
99.8 	(2) $10 in the special revenue fund is appropriated to the commissioner of 
99.9 	employment and economic development for the displaced homemaker program under 
99.10 	section 116L.96.

99.11 	Sec. 17. Laws 2009, chapter 79, article 3, section 18, is amended to read:
99.12 	Sec. 18. REQUIRING THE DEVELOPMENT OF COMMUNITY-BASED 
99.13 	MENTAL HEALTH SERVICES FOR PATIENTS COMMITTED TO THE 
99.14 	ANOKA-METRO REGIONAL TREATMENT CENTER.
 99.15 	In consultation with community partners, the commissioner of human services 
99.16 	shall develop an array of community-based services in the metro area to transform the 
99.17 	current services now provided to patients at the Anoka-Metro Regional Treatment Center. 
99.18 	The community-based services may be provided in facilities with 16 or fewer beds, and 
99.19 	must provide the appropriate level of care for the patients being admitted to the facilities
99.20 	established in partnership with private and public hospital organizations, community 
99.21 	mental health centers and other mental health community services providers, and 
99.22 	community partnerships, and must be staffed by state employees. The planning for this 
99.23 	transition must be completed by October 1, 2009 2010, with an initial a  report detailing 
99.24 	the transition plan, services that will be provided, including incorporating peer specialists 
99.25 	where appropriate, the location of the services, and the number of patients that will be 
99.26 	served, to the committee chairs of health and human services by November 30, 2009 2010, 
99.27 	and a semiannual report on progress until the transition is completed. The commissioner 
99.28 	of human services shall solicit interest frommake a genuine effort to engage stakeholders 
99.29 	and potential community partners in the process. The individuals working inemployed by 
99.30 	the community-based services facilities under this section are state employees supervised 
99.31 	by the commissioner of human services. No layoffs shall occur as a result of restructuring 
99.32 	under this section. Savings generated as a result of transitioning patients from the 
99.33 	Anoka-Metro Regional Treatment Center to community-based services may be used to 
99.34 	fund supportive housing staffed by state employees.

100.1 	Sec. 18. CASE MANAGEMENT RECOMMENDATIONS.
 100.2 	By February 1, 2011, the commissioner of human services shall provide specific 
100.3 	recommendations and language for proposed legislation to:
100.4 	(1) define the administrative and the service functions of case management for 
100.5 	persons with disabilities and make changes to improve the funding for administrative 
100.6 	functions;
100.7 	(2) standardize and simplify processes, standards, and timelines for case 
100.8 	management with the Department of Human Services Disability Services Division, 
100.9 	including eligibility determinations, resource allocation, management of dollars, provision 
100.10 	for assignment of one case manager at a time per person, waiting lists, quality assurance, 
100.11 	host county concurrence requirements, county of financial responsibility provisions, and 
100.12 	waiver compliance; and
100.13 	(3) increase opportunities for consumer choice of case management functions 
100.14 	involving service coordination.
100.15 	In developing these recommendations, the commissioner of human services shall consider 
100.16 	the recommendations of the 2007 Redesigning Case Management Services for Persons 
100.17 	with Disabilities Report and consult with existing stakeholder groups, which include 
100.18 	representatives of counties, disability and senior advocacy groups, service providers, and 
100.19 	representatives of agencies that provide contacted case management.
100.20 	This provision is effective the day following final enactment.

100.21 	Sec. 19. VETERINARY PRACTICE AND CONTROLLED SUBSTANCE 
100.22 	ABUSE STUDY.
 100.23 	The Board of Pharmacy, in consultation with the Prescription Electronic Reporting 
100.24 	Advisory Committee and the Board of Veterinary Medical Practice, shall study the issue 
100.25 	of the diversion of controlled substances from veterinary practice and report to the chairs 
100.26 	and ranking minority members of the senate health and human services policy and finance 
100.27 	division and the house of representatives health care and human services policy and 
100.28 	finance division by December 15, 2011, on recommendations to include veterinarians in 
100.29 	the prescription electronic reporting system in Minnesota Statutes, section 152.126.

100.30 	Sec. 20.  REPEALER.
 100.31 	Minnesota Statutes 2008, sections 254B.02, subdivisions 2, 3, and 4; and 254B.09, 
100.32 	subdivisions 4, 5, and 7, are repealed.

101.1 	ARTICLE 7
101.2 	HEALTH AND HUMAN SERVICES APPROPRIATIONS

101.3	Section 1. SUMMARY OF APPROPRIATIONS.
 	
101.4 	The amounts shown in this section summarize direct appropriations by fund made 
101.5 	in this article.

101.6			2010
		2011
		Total
	
101.7	General
	$
	3,503,000
	$
	243,587,000
	$
	247,090,000
	
101.8
101.9	State Government Special 
Revenue
		113,000
		624,000
		737,000
	
101.10	Health Care Access
		998,000
		27,534,000
		28,532,000
	
101.11	Federal TANF
		11,464,000
		14,986,000
		26,450,000
	
101.12	Special Revenue
		-0-
		93,000
		93,000
	
101.13	Total
	$
	16,078,000
	$
	286,824,000
	$
	302,902,000

								

								

101.14	Sec. 2. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
101.15 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
101.16 	in parentheses, subtracted from the appropriations in Laws 2009, chapter 79, article 13, 
101.17 	as amended by Laws 2009, chapter 173, article 2, to the agencies and for the purposes 
101.18 	specified in this article. The appropriations are from the general fund, or another named 
101.19 	fund, and are available for the fiscal years indicated for each purpose. The figures "2010" 
101.20 	and "2011" used in this article mean that the addition to or subtraction from appropriations 
101.21 	listed under them is available for the fiscal year ending June 30, 2010, or June 30, 2011, 
101.22 	respectively. "The first year" is fiscal year 2010. "The second year" is fiscal year 2011. 
101.23 	"The biennium" is fiscal years 2010 and 2011. Supplemental appropriations and reductions 
101.24 	for the fiscal year ending June 30, 2010, are effective the day following final enactment 
101.25 	unless a different effective date is explicit.

101.26				APPROPRIATIONS
	
101.27				Available for the Year
	
101.28				Ending June 30
	
101.29					2010
		2011

101.30
101.31	Sec. 3. COMMISSIONER OF HUMAN 
SERVICES

101.32	Subdivision 1.Total Appropriation
 	$
	 18,167,000
	$
	 290,442,000

102.1	Appropriations by Fund
	
102.2		2010
	2011
	
102.3	General
	5,705,000
	 247,961,000
	
102.4	Health Care Access
	998,000
	27,495,000
	
102.5	Federal TANF
	 11,464,000
	14,986,000
	
102.6 	The appropriations for each purpose are 
102.7 	shown in the following subdivisions.
102.8 	TANF Financing and Maintenance of 
102.9 	Effort. The commissioner, with the approval 
102.10 	of the commissioner of management and 
102.11 	budget, and after notification of the chairs 
102.12 	of the relevant senate budget division and 
102.13 	house of representatives finance division, 
102.14 	may adjust the amount of TANF transfers 
102.15 	between the MFIP transition year child care 
102.16 	assistance program and MFIP grant programs 
102.17 	within the fiscal year and within the current 
102.18 	biennium and the biennium ending June 30, 
102.19 	2013, to ensure that state and federal match 
102.20 	and maintenance of effort requirements are 
102.21 	met. These transfers and amounts shall be 
102.22 	reported to the chairs of the senate and house 
102.23 	of representatives Finance Committees, the 
102.24 	senate Health and Human Services Budget 
102.25 	Division, and the house of representatives 
102.26 	Health Care and Human Services Finance 
102.27 	Division and Early Childhood Finance and 
102.28 	Policy Division by December 1 of each 
102.29 	fiscal year. Notwithstanding any contrary 
102.30 	provision in this article, this paragraph 
102.31 	expires June 30, 2013.
102.32 	TANF Funding for the Working Family 
102.33 	Tax Credit. In addition to the amounts 
102.34 	specified in Minnesota Statutes, section 
102.35 	290.0671, subdivision 6, $18,964,000 
102.36 	of TANF funds in fiscal year 2010 are 
103.1 	appropriated to the commissioner to 
103.2 	reimburse the general fund for the cost of 
103.3 	the working family tax credit for eligible 
103.4 	families. With respect to the amounts 
103.5 	appropriated for fiscal year 2010, the 
103.6 	commissioner shall reimburse the general 
103.7 	fund by June 30, 2010. This paragraph is 
103.8 	effective the day following final enactment.
103.9 	TANF Transfer to Federal Child 
103.10 	Care and Development Fund. Of the 
103.11 	TANF appropriation in fiscal year 2011, 
103.12 	$12,500,000 is to the commissioner for 
103.13 	the purposes of MFIP and transition year 
103.14 	child care under Minnesota Statutes, section 
103.15 	119B.05. The commissioner shall authorize 
103.16 	the transfer of sufficient TANF funds to the 
103.17 	federal child care and development fund to 
103.18 	meet this appropriation and shall ensure that 
103.19 	all transferred funds are expended according 
103.20 	to federal child care and development fund 
103.21 	regulations.
103.22 	Special Revenue Fund Transfers. (a) The 
103.23 	commissioner shall transfer the following 
103.24 	amounts from special revenue fund balances 
103.25 	to the general fund by June 30 of each 
103.26 	respective fiscal year: $613,000 in fiscal year 
103.27 	2010, and $493,000 in fiscal year 2011. This 
103.28 	provision is effective the day following final 
103.29 	enactment.
103.30 	(b) The actual transfers made under 
103.31 	paragraph (a) must be separately identified 
103.32 	and reported as part of the quarterly reporting 
103.33 	of transfers to the chairs of the relevant senate 
103.34 	budget division and house of representatives 
103.35 	finance division.
104.1 	Supplemental Nutrition Assistance 
104.2 	Program Enhanced Administrative 
104.3 	Funding. The funds available for 
104.4 	administration of the Supplemental Nutrition 
104.5 	Assistance Program under the Department 
104.6 	of Defense Appropriations Act of 2010, 
104.7 	Public Law 111-118, are appropriated 
104.8 	to the commissioner to pay the actual 
104.9 	costs of providing for increased eligibility 
104.10 	determinations, caseload-related costs, timely 
104.11 	application processing, and quality control. 
104.12 	Of these funds, 20 percent shall be allocated 
104.13 	to the commissioner and 80 percent shall 
104.14 	be allocated to counties. The commissioner 
104.15 	shall allocate the county portion based 
104.16 	on recent caseload. Reimbursement shall 
104.17 	be based on actual costs reported by 
104.18 	counties through existing processes. Tribal 
104.19 	reimbursement must be made from the state 
104.20 	portion, based on a caseload factor equivalent 
104.21 	to that of a county.

104.22	Subd. 2.Agency Management 

104.23	(a)  Financial Operations
		-0-
		103,000
	
104.24 	Base Adjustment.  The general fund base is 
104.25 	decreased by $3,292,000 in fiscal year 2012 
104.26 	and $3,292,000 in fiscal year 2013.

104.27	(b)  Legal and Regulatory Operations
		-0-
		(286,000)
	
104.28 	Moratorium of Premium Payments. For 
104.29 	fiscal year 2011, there shall be a moratorium 
104.30 	on payments made by the commissioner 
104.31 	to the Minnesota Joint Underwriting 
104.32 	Association for personal injury liability 
104.33 	insurance for providers under Minnesota 
104.34 	Statutes, section 245.814. Notwithstanding 
104.35 	Minnesota Statutes, section 62I.16, the 
105.1 	Minnesota Joint Underwriting Association 
105.2 	shall continue to insure the providers under 
105.3 	Minnesota Statutes, section 245.814. In 
105.4 	fiscal year 2011, the amount of the general 
105.5 	fund appropriation allocated to payments 
105.6 	under Minnesota Statutes, section 245.814, 
105.7 	is reduced by $400,000. This is a onetime 
105.8 	reduction in fiscal year 2011.
105.9 	Base Adjustment.  The general fund base 
105.10 	is increased by $382,000 in fiscal year 2012 
105.11 	and $382,000 in fiscal year 2013.

105.12	(c) Management Operations
		-0-
		(114,000)
	
105.13 	Base Adjustment.  The general fund base is 
105.14 	increased by $18,000 in fiscal year 2012 and 
105.15 	$18,000 in fiscal year 2013.

105.16
105.17	Subd. 3.Revenue and Pass-Through Revenue 
Expenditures
 		 11,464,000
		20,000,000
	
105.18 	These appropriations are from the federal 
105.19 	TANF fund.
105.20 	Child Care Development Fund 
105.21 	Unexpended Balance. In addition to 
105.22 	the amount provided in this section, the 
105.23 	commissioner shall carry over and expend 
105.24 	in fiscal year 2011 $7,500,000 of the TANF 
105.25 	funds transferred in fiscal year 2010 that 
105.26 	reflect the child care and development fund 
105.27 	unexpended balance for the basic sliding 
105.28 	fee child care assistance program under 
105.29 	Minnesota Statutes, section 119B.03. The 
105.30 	commissioner shall ensure that all funds are 
105.31 	expended according to the federal child care 
105.32 	and development fund regulations relating to 
105.33 	the TANF transfers.
106.1 	Base Adjustment. The general fund base is 
106.2 	increased by $7,500,000 in fiscal year 2012 
106.3 	and $7,500,000 in fiscal year 2013.
106.4 	TANF Transfer Correction.
106.5 	Notwithstanding any provisions of 
106.6 	Laws 2009, chapter 79, article 13, section 3, 
106.7 	subdivision 3, as amended by Laws 2009, 
106.8 	chapter 173, article 2, section 1, subdivision 
106.9 	3, the following TANF fund amounts are 
106.10 	appropriated to the commissioner for the 
106.11 	purposes of MFIP and transition year child 
106.12 	care under Minnesota Statutes, section 
106.13 	119B.05:
106.14 	(1) fiscal year 2010, $862,000;
106.15 	(2) fiscal year 2011, $978,000;
106.16 	(3) fiscal year 2012, $0; and
106.17 	(4) fiscal year 2013, $0.
106.18 	Notwithstanding any contrary provision in 
106.19 	this article, this paragraph expires on June 
106.20 	30, 2013.

106.21	Subd. 4.Economic Support Grants

106.22	(a) Support Services Grants
		-0-
		-0-
	
106.23 	Base Adjustment. The federal TANF fund 
106.24 	base is decreased by $5,004,000 in fiscal year 
106.25 	2012 and $5,004,000 in fiscal year 2013.

106.26	(b) MFIP Child Care Assistance Grants
		-0-
		433,000
	
106.27 	Base Adjustment. The general fund base is 
106.28 	increased by $94,000 in fiscal year 2012 and 
106.29 	$24,000 in fiscal year 2013.

106.30
106.31	(c) Basic Sliding Fee Child Care Assistance 
Grants

107.1	Appropriations by Fund
	
107.2	General
	-0-
	(7,500,000)
	
107.3	Federal TANF
	-0-
	(5,014,000)
	
107.4 	Base Adjustment. The general fund base 
107.5 	is increased by $2,699,000 in fiscal year 
107.6 	2012 and $2,699,000 in fiscal year 2013. 
107.7 	The federal TANF fund base is increased 
107.8 	by $5,014,000 in fiscal year 2012 and 
107.9 	$5,014,000 in fiscal year 2013.

107.10	(d) Child and Community Services Grants
		-0-
		(10,700,000)
	
107.11 	This is a onetime reduction in fiscal year 
107.12 	2011.

107.13	(e) Group Residential Housing Grants
		-0-
		-0-
	
107.14 	Reduction of Supplemental Service Rate.
107.15 	Effective July 1, 2011, to June 30, 2013, 
107.16 	the commissioner shall decrease the group 
107.17 	residential housing supplementary service 
107.18 	rate under Minnesota Statutes, section 
107.19 	256I.05, subdivision 1a, by five percent 
107.20 	for services rendered on or after that date, 
107.21 	except that reimbursement rates for a group 
107.22 	residential housing facility reimbursed as a 
107.23 	nursing facility shall not be reduced. The 
107.24 	reduction in this paragraph is in addition to 
107.25 	the reduction under Laws 2009, chapter 79, 
107.26 	article 8, section 79, paragraph (b), clause 
107.27 	(11).
107.28 	Base Adjustment. The general fund base is 
107.29 	decreased by $700,000 in fiscal year 2012 
107.30 	and $700,000 in fiscal year 2013.

107.31	(f) Children's Mental Health Grants
		(200,000)
		(200,000)

107.32
107.33	(g) Other Children's and Economic Assistance 
Grants
		-0-
		-0-
	
108.1 	Base Adjustment. The general fund base is 
108.2 	increased by $130,000 in fiscal year 2012 and 
108.3 	decreased by $360,000 in fiscal year 2013.

108.4
108.5	Subd. 5.Children and Economic Assistance 
Management

108.6
108.7	(a) Children and Economic Assistance 
Administration
		-0-
		-0-
	
108.8 	Base Adjustment. The federal TANF fund 
108.9 	base is decreased by $700,000 in fiscal year 
108.10 	2012 and $700,000 in fiscal year 2013.

108.11
108.12	(b) Children and Economic Assistance 
Operations
		-0-
		196,000
	
108.13 	Base Adjustment. The general fund base is 
108.14 	decreased by $13,000 in fiscal year 2012 and 
108.15 	$13,000 in fiscal year 2013.

108.16	Subd. 6.Health Care Grants

108.17	(a) MinnesotaCare Grants
		998,000
		15,312,000
	
108.18 	This appropriation is from the health care 
108.19 	access fund.
108.20 	Health Care Access Fund Transfer to 
108.21 	General Fund. The commissioner of 
108.22 	management and budget shall transfer 
108.23 	$998,000 in fiscal year 2010 and 
108.24 	$217,265,000 in fiscal year 2011 from the 
108.25 	health care access fund to the general fund. 
108.26 	This paragraph is effective the day following 
108.27 	final enactment.
108.28 	The base for this transfer is $262,647,000 in 
108.29 	fiscal year 2012 and $174,772,000 in fiscal 
108.30 	year 2013.
108.31 	MinnesotaCare Ratable Reduction.
108.32 	Effective for services rendered on or 
108.33 	after July 1, 2010, to December 31, 2013, 
108.34 	MinnesotaCare payments to managed care 
109.1 	plans under Minnesota Statutes, section 
109.2 	256L.12, for single adults and households 
109.3 	without children whose income is greater 
109.4 	than 75 percent of federal poverty guidelines 
109.5 	shall be reduced by ten percent. Managed 
109.6 	care plans shall not pass these payment 
109.7 	reductions on to providers. Notwithstanding 
109.8 	any contrary provision of this article, this 
109.9 	paragraph shall expire on December 31, 
109.10 	2013.

109.11
109.12	(b) Medical Assistance Basic Health Care 
Grants - Families and Children

109.13	Appropriations by Fund
	
109.14	General
	-0-
	(7,631,000)
	
109.15	Health Care Access
	-0-
	7,714,000
	
109.16 	Critical Access Dental. Of the general 
109.17 	fund appropriation, $731,000 in fiscal year 
109.18 	2011 is to the commissioner for critical 
109.19 	access dental provider reimbursement 
109.20 	payments under Minnesota Statutes, section 
109.21 	256B.76 subdivision 4. This is a onetime 
109.22 	appropriation.
109.23 	Nonadministrative Rate Reduction. For 
109.24 	services rendered on or after July 1, 2010, 
109.25 	to December 31, 2013, the commissioner 
109.26 	shall reduce contract rates paid to managed 
109.27 	care plans under Minnesota Statutes, sections 
109.28 	256B.69 and 256L.12, and to county-based 
109.29 	purchasing plans under Minnesota Statutes, 
109.30 	section 256B.692, by three percent of the 
109.31 	contract rate attributable to nonadministrative 
109.32 	services in effect on June 30, 2010. Managed 
109.33 	care plans shall not pass these rate reductions 
109.34 	on to providers. Notwithstanding any 
109.35 	contrary provision in this article, this rider 
109.36 	expires on December 31, 2013.

110.1
110.2	(c) Medical Assistance Basic Health Care 
Grants - Elderly and Disabled

110.3	Appropriations by Fund
	
110.4	General
	-0-
	(3,877,000)
	
110.5	Health Care Access
	-0-
	4,319,000
	
110.6 	MnDHO Transition. Of the general fund 
110.7 	appropriation for fiscal year 2011, $250,000 
110.8 	is to the commissioner to be made available 
110.9 	to county agencies to assist in the transition 
110.10 	of the approximately 1,290 current MnDHO 
110.11 	members to the fee-for-service Medicaid 
110.12 	program or another managed care option by 
110.13 	January 1, 2011.
110.14 	County agencies shall work with the 
110.15 	commissioner, health plans, and MnDHO 
110.16 	members and their legal representatives to 
110.17 	develop and implement transition plans that 
110.18 	include:
110.19 	(1) identification of service needs of MnDHO 
110.20 	members based on the current assessment or 
110.21 	through the completion of a new assessment;
110.22 	(2) identification of services currently 
110.23 	provided to MnDHO members and which 
110.24 	of those services will continue to be 
110.25 	reimbursable through fee-for-service 
110.26 	or another managed care option under 
110.27 	the Medicaid state plan or a home and 
110.28 	community-based waiver program;
110.29 	(3) identification of service providers who do 
110.30 	not have a contract with the county or who 
110.31 	are currently reimbursed at a different rate 
110.32 	than the county contracted rate; and
110.33 	(4) development of an individual service 
110.34 	plan that is within allowable waiver funding 
110.35 	limits.

111.1	(d) General Assistance Medical Care Grants
		-0-
		(83,689,000)

111.2	(e)  Other Health Care Grants
		-0-
		-0-
	
111.3 	Cobra Carryforward. Unexpended funds 
111.4 	appropriated in fiscal year 2010 for COBRA 
111.5 	grants under Laws 2009, chapter 79, article 
111.6 	5, section 78, do not cancel and are available 
111.7 	to the commissioner for fiscal year 2011 
111.8 	COBRA grant expenditures. Up to $111,000 
111.9 	of the fiscal year 2011 appropriation for 
111.10 	COBRA grants provided in Laws 2009, 
111.11 	chapter 79, article 13, section 3, subdivision 
111.12 	6, may be used by the commissioner for costs 
111.13 	related to administration of the COBRA 
111.14 	grants.

111.15
111.16	(f) Medical Assistance Health Care Grants; 
Adults Without Children
		9,794,000
		350,696,000
	
111.17 	Medical Assistance Expansion. If the 
111.18 	commissioner is not able to implement 
111.19 	the medical assistance expansion for 
111.20 	single adults under Minnesota Statutes, 
111.21 	section 256B.055, subdivision 15, by June 
111.22 	1, 2010, the commissioner shall make 
111.23 	medical assistance payments to providers 
111.24 	retroactively to June 1, 2010.

111.25	Subd. 7.Health Care Management

111.26	(a) Health Care Administration
		-0-
		218,000
	
111.27 	Minnesota Senior Health Options 
111.28 	Reimbursement. Effective July 1, 2011, 
111.29 	federal administrative reimbursement 
111.30 	resulting from the Minnesota senior 
111.31 	health options project is appropriated 
111.32 	to the commissioner for this activity. 
111.33 	Notwithstanding any contrary provision, this 
111.34 	provision expires June 30, 2013.
112.1 	Utilization Review. Effective July 1, 
112.2 	2011, federal administrative reimbursement 
112.3 	resulting from prior authorization and 
112.4 	inpatient admission certification by a 
112.5 	professional review organization shall be 
112.6 	dedicated to, and is appropriated to, the 
112.7 	commissioner for these activities. A portion 
112.8 	of these funds must be used for activities 
112.9 	to decrease unnecessary pharmaceutical 
112.10 	costs in medical assistance. Notwithstanding 
112.11 	any contrary provision of this article, this 
112.12 	paragraph expires June 30, 2013.
112.13 	Reporting Compliance. The entities named 
112.14 	in Minnesota Statutes, section 256B.199, 
112.15 	paragraph (b), clause (1), shall comply with 
112.16 	the requirements of that statute by promptly 
112.17 	reporting on a quarterly basis certified public 
112.18 	expenditures that may qualify for federal 
112.19 	matching funds.
112.20 	Base Adjustment. The general fund base is 
112.21 	decreased by $172,000 in fiscal year 2012 
112.22 	and $172,000 in fiscal year 2013.

112.23	(b) Health Care Operations

112.24	Appropriations by Fund
	
112.25	General
	-0-
	177,000
	
112.26	Health Care Access
	-0-
	150,000
	
112.27 	The general fund appropriation is a onetime 
112.28 	appropriation in fiscal year 2011.
112.29 	Base Adjustment. The health care access 
112.30 	fund base for health care operations is 
112.31 	decreased by $755,000 in fiscal year 2012 
112.32 	and $893,000 in fiscal year 2013.

112.33	Subd. 8.Continuing Care Grants

112.34	(a) Aging and Adult Services Grants
		-0-
		(937,000)
	
113.1 	Base Adjustment. The general fund base for 
113.2 	aging and adult services grants is increased 
113.3 	by $1,124,000 in fiscal year 2012 and 
113.4 	$1,126,000 in fiscal year 2013.

113.5
113.6	(b) Medical Assistance Long-Term Care 
Facilities Grants
		-0-
		10,173,000
	
113.7 	Variable Rate Adjustments. Of this 
113.8 	appropriation, $683,000 in fiscal year 2011 
113.9 	is to the commissioner for variable rate 
113.10 	adjustments under Minnesota Statutes, 
113.11 	section 256B.5013, subdivision 1, for 
113.12 	services provided on or after July 1, 
113.13 	2010, to June 30, 2011. This is a onetime 
113.14 	appropriation.

113.15
113.16	(c) Medical Assistance Long-Term Care 
Waivers and Home Care Grants
		-0-
		(4,515,000)
	
113.17 	Manage Growth in Traumatic Brain 
113.18 	Injury and Community Alternatives for 
113.19 	Disabled Individuals Waivers. During 
113.20 	the fiscal year beginning July 1, 2010, the 
113.21 	commissioner shall allocate money for home 
113.22 	and community-based waiver programs 
113.23 	under Minnesota Statutes, section 256B.49, 
113.24 	to ensure a reduction in state spending that is 
113.25 	equivalent to limiting the caseload growth 
113.26 	of the TBI waiver to six allocations per 
113.27 	month and the CADI waiver to 60 allocations 
113.28 	per month. The limits do not apply: (1) 
113.29 	when there is an approved plan for nursing 
113.30 	facility bed closures for individuals under 
113.31 	age 65 who require relocation due to the 
113.32 	bed closure; (2) to fiscal year 2009 waiver 
113.33 	allocations delayed due to unallotment; or (3) 
113.34 	to transfers authorized by the commissioner 
113.35 	from the personal care assistance program 
113.36 	of individuals having a home care rating of 
114.1 	CS, MT, or HL. Priorities for the allocation 
114.2 	of funds must be for individuals anticipated 
114.3 	to be discharged from institutional settings or 
114.4 	who are at imminent risk of a placement in 
114.5 	an institutional setting.
114.6 	Manage Growth in the Developmental 
114.7 	Disability (DD) Waiver. The commissioner 
114.8 	shall manage the growth in the DD waiver 
114.9 	by limiting the allocations included in the 
114.10 	November 2010 forecast to six additional 
114.11 	diversion allocations each month for the 
114.12 	calendar year that begins on January 1, 
114.13 	2011. Additional allocations must be 
114.14 	made available for transfers authorized by 
114.15 	the commissioner from the personal care 
114.16 	assistance program of individuals having a 
114.17 	home care rating of CS, MT, or HL. This 
114.18 	provision is effective through December 31, 
114.19 	2011.

114.20	(d) Adult Mental Health Grants
		(3,500,000)
		-0-
	
114.21 	Compulsive Gambling Lottery Prize 
114.22 	Fund. The lottery prize fund appropriation 
114.23 	for compulsive gambling is reduced by 
114.24 	$80,000 in fiscal year 2010 and $79,000 in 
114.25 	fiscal year 2011. This is a onetime reduction.
114.26 	Compulsive Gambling Special Revenue 
114.27 	Account. $149,000 for fiscal year 2010 
114.28 	and $27,000 for fiscal year 2011 from 
114.29 	the compulsive gambling special revenue 
114.30 	account established under Minnesota 
114.31 	Statutes, section 245.982, shall be transferred 
114.32 	and deposited into the general fund by June 
114.33 	30 of each respective fiscal year.

114.34	(e) Chemical Dependency Entitlement Grants
		-0-
		(1,738,000)

115.1
115.2	(f) Chemical Dependency Nonentitlement 
Grants
		(389,000)
		-0-

115.3	(g) Other Continuing Care Grants
		-0-
		250,000
	
115.4 	 This is a onetime appropriation in fiscal year 
115.5 	2011.

115.6	Subd. 9.Continuing Care Management
 		-0-
		303,000
	
115.7 	Base Adjustment. The general fund base for 
115.8 	continuing care management is increased by 
115.9 	$107,000 in fiscal year 2012 and $99,000 in 
115.10 	fiscal year 2013.

115.11	Subd. 10.State-Operated Services
 					
115.12 	Obsolete Laundry Depreciation Account.
115.13 	$669,000, or the balance, whichever is 
115.14 	greater, must be transferred from the 
115.15 	state-operated services laundry depreciation 
115.16 	account in the special revenue fund and 
115.17 	deposited into the general fund by June 30, 
115.18 	2010.
115.19 	Operating Budget Reductions. No 
115.20 	operating budget reductions enacted in Laws 
115.21 	2010, chapter 200, or in this act shall be 
115.22 	allocated to state-operated services.
115.23 	Prohibition on Commingling Funds.
115.24 	The commissioner shall not commingle 
115.25 	state-operated services funds and mental 
115.26 	health funds and grants. The appropriations 
115.27 	to the commissioner for state-operated 
115.28 	services and mental health services and 
115.29 	grants must not be consolidated in any 
115.30 	manner or transferred within the Department 
115.31 	of Human Services, without specific 
115.32 	legislative approval. Notwithstanding 
115.33 	any contrary provision in this article, this 
115.34 	paragraph shall not expire.

116.1	(a) Adult Mental Health Services
		-0-
		6,888,000
	
116.2 	Base Adjustment. The general fund base is 
116.3 	decreased by $12,286,000 in fiscal year 2012 
116.4 	and $12,394,000 in fiscal year 2013.
116.5 	Appropriation Requirements.  (a) 
116.6 	The general fund appropriation to the 
116.7 	commissioner includes funding for the 
116.8 	following:
116.9 	(1) to a community collaborative to begin 
116.10 	providing crisis center services in the 
116.11 	Mankato area that are comparable to 
116.12 	the crisis services provided prior to the 
116.13 	closure of the Mankato Crisis Center. The 
116.14 	commissioner shall recruit former employees 
116.15 	of the Mankato Crisis Center who were 
116.16 	recently laid off to staff the new crisis 
116.17 	services. The commissioner shall obtain 
116.18 	legislative approval prior to discontinuing 
116.19 	this funding;
116.20 	(2) to maintain the building in Eveleth 
116.21 	that currently houses community transition 
116.22 	services and to establish a psychiatric 
116.23 	intensive therapeutic foster home as an 
116.24 	enterprise activity. The commissioner shall 
116.25 	request a waiver amendment to allow CADI 
116.26 	funding for psychiatric intensive therapeutic 
116.27 	foster care services provided in the same 
116.28 	location and building as the community 
116.29 	transition services. If the federal government 
116.30 	does not approve the waiver amendment, the 
116.31 	commissioner shall continue to pay the lease 
116.32 	for the building out of the state-operated 
116.33 	services budget until the commissioner of 
116.34 	administration subleases the space or until 
116.35 	the lease expires, and shall establish the 
117.1 	psychiatric intensive therapeutic foster home 
117.2 	at a different site. The commissioner shall 
117.3 	make diligent efforts to sublease the space;
117.4 	(3) to restaff, reopen, and operate the 
117.5 	community behavioral health hospital with 
117.6 	hospital level of care in Wadena until June 
117.7 	30, 2011. The collections associated with 
117.8 	this hospital continue to be submitted to 
117.9 	the general fund until June 30, 2011. The 
117.10 	commissioner shall develop a conversion 
117.11 	plan and may convert the community 
117.12 	behavioral health hospital to psychiatric 
117.13 	extensive recovery treatment services 
117.14 	after June 30, 2011. This is a onetime 
117.15 	appropriation and expires on June 30, 2011;
117.16 	(4) to continue the operation of the dental 
117.17 	clinics in Brainerd, Cambridge, Faribault, 
117.18 	Fergus Falls, and Willmar at the same level of 
117.19 	care and staffing that was in effect on March 
117.20 	1, 2010. The commissioner shall not proceed 
117.21 	with the planned closure of the dental 
117.22 	clinics, and shall not discontinue services or 
117.23 	downsize any of the state-operated dental 
117.24 	clinics without specific legislative approval. 
117.25 	The commissioner shall continue to bill 
117.26 	for services provided to obtain medical 
117.27 	assistance critical access dental payments 
117.28 	and cost-based payment rates as provided 
117.29 	in Minnesota Statutes, section 256B.76, 
117.30 	subdivision 2, and shall bill for services 
117.31 	provided three months retroactively from 
117.32 	the date of this act. This appropriation is 
117.33 	onetime;
117.34 	(5) to convert the Minnesota 
117.35 	Neurorehabilitation Hospital in Brainerd 
118.1 	to a neurocognitive psychiatric extensive 
118.2 	recovery treatment service; and
118.3 	(6) to convert the Minnesota extended 
118.4 	treatment options (METO) program to 
118.5 	the following community-based services 
118.6 	provided by state employees: (i) psychiatric 
118.7 	extensive recovery treatment services; 
118.8 	(ii) intensive transitional foster homes 
118.9 	as enterprise activities; and (iii) other 
118.10 	community-based support services. The 
118.11 	provisions under Minnesota Statutes, section 
118.12 	252.025, subdivision 7, are applicable to 
118.13 	the METO services established under this 
118.14 	clause. Notwithstanding Minnesota Statutes, 
118.15 	section 246.18, subdivision 8, any revenue 
118.16 	lost to the general fund by the conversion 
118.17 	of METO to new services must be replaced 
118.18 	by revenue from the new services to offset 
118.19 	the lost revenue to the general fund until 
118.20 	June 30, 2013. Any revenue generated in 
118.21 	excess of this amount shall be deposited into 
118.22 	the special revenue fund under Minnesota 
118.23 	Statutes, section 246.18, subdivision 8.
118.24 	(b) The commissioner shall not move beds 
118.25 	from the Anoka-Metro Regional Treatment 
118.26 	Center to the psychiatric nursing facility 
118.27 	at St. Peter without specific legislative 
118.28 	approval.
118.29 	(c) The commissioner shall implement 
118.30 	changes, including the following, to save a 
118.31 	minimum of $6,006,000 beginning in fiscal 
118.32 	year 2011, and report to the legislature the 
118.33 	specific initiatives implemented and the 
118.34 	savings allocated to each one, including:
119.1 	(1) maximizing budget savings through 
119.2 	strategic employee staffing; and
119.3 	(2) identifying and implementing cost 
119.4 	reductions in cooperation with state-operated 
119.5 	services employees.
119.6 	Base level funding is reduced by $6,006,000 
119.7 	effective fiscal year 2011.
119.8 	(d) The commissioner shall seek certification 
119.9 	or approval from the federal government for 
119.10 	the new services under paragraph (a) that are 
119.11 	eligible for federal financial participation 
119.12 	and deposit the revenue associated with 
119.13 	these new services in the account established 
119.14 	under Minnesota Statutes, section 246.18, 
119.15 	subdivision 8, unless otherwise specified.
119.16 	(e) Notwithstanding any contrary provision 
119.17 	in this article, this rider shall not expire.

119.18	(b) Minnesota Sex Offender Services
		-0-
		(289,000)
	
119.19 	Sex Offender Services. Base level funding 
119.20 	for Minnesota sex offender services is 
119.21 	reduced by $837,000 in fiscal year 2012 and 
119.22 	$837,000 in fiscal year 2013 for the 50-bed 
119.23 	sex offender treatment program within the 
119.24 	Moose Lake correctional facility in which 
119.25 	Department of Human Services staff from 
119.26 	Minnesota sex offender services provide 
119.27 	clinical treatment to incarcerated offenders. 
119.28 	This reduction shall become part of the base 
119.29 	for the Department of Human Services.
119.30 	Interagency Agreements. The 
119.31 	commissioner shall terminate by June 
119.32 	30, 2010, all interagency agreements with 
119.33 	the Department of Corrections to provide 
119.34 	chemical dependency treatment services. 
120.1 	This paragraph is effective the day following 
120.2 	final enactment.

120.3	Sec. 4. COMMISSIONER OF HEALTH

120.4	Subdivision 1.Total Appropriation
 	$
	(2,367,000)
	$
	(3,963,000)

120.5	Appropriations by Fund
	
120.6		2010
	2011
	
120.7	General
	(2,367,000)
	(4,011,000)
	
120.8
120.9	State Government 
Special Revenue
	-0-
	9,000
	
120.10	Health Care Access
	-0-
	39,000

120.11	Subd. 2.Community and Family Health
 		(221,000)
		(5,347,000)
	
120.12 	Base Level Adjustment. The general fund 
120.13 	base is increased by $4,912,000 in fiscal year 
120.14 	2012 and $4,912,000 in fiscal year 2013.

120.15	Subd. 3.Policy, Quality, and Compliance

120.16	Appropriations by Fund
	
120.17		2010
	2011
	
120.18	General
	(1,797,000)
	451,000
	
120.19
120.20	State Government 
Special Revenue
	-0-
	9,000
	
120.21	Health Care Access
	-0-
	39,000
	
120.22 	The health care access fund appropriation is 
120.23 	onetime in fiscal year 2011.
120.24 	Public Health Grant Reductions. The 
120.25 	reductions in public health grants shall only 
120.26 	be applied to county public health entities 
120.27 	and not to municipal or tribal entities.
120.28 	Health Care Reform. Funds appropriated 
120.29 	in Laws 2008, chapter 358, article 5, section 
120.30 	4, subdivision 3, for health reform activities 
120.31 	to implement Laws 2008, chapter 358, 
120.32 	article 4, are available until expended. 
120.33 	Notwithstanding any contrary provision in 
120.34 	this article, this provision shall not expire.
121.1 	Rural Hospital Capital Improvement 
121.2 	Grants. Of the general fund reductions in 
121.3 	fiscal year 2010, $1,755,000 is from the rural 
121.4 	hospital capital improvement grant program. 
121.5 	This paragraph is effective the day following 
121.6 	final enactment.
121.7 	Base Level Adjustment. The general fund 
121.8 	base is decreased by $207,000 in fiscal year 
121.9 	2012 and $207,000 in fiscal year 2013. The 
121.10 	state government special revenue fund base 
121.11 	is decreased by $2,000 in fiscal year 2012 
121.12 	and $2,000 in fiscal year 2013.
121.13 	Comprehensive Advanced Life Support 
121.14 	Program. Of the general fund appropriation, 
121.15 	$377,000 in fiscal year 2011 is to the 
121.16 	commissioner for the comprehensive 
121.17 	advanced life support educational program. 
121.18 	For fiscal year 2012, base level funding for 
121.19 	this program shall be $377,000.
121.20 	Birth Centers. Of the appropriation in fiscal 
121.21 	year 2011 from the state government special 
121.22 	revenue fund, $9,000 is to the commissioner 
121.23 	to license birth centers. Base level funding 
121.24 	for this activity shall be $7,000 in fiscal year 
121.25 	2012 and $7,000 in fiscal year 2013.
121.26 	Office of Unlicensed Health Care Practice.
121.27 	Of the general fund appropriation, $74,000 
121.28 	in fiscal year 2011 is for the Office of 
121.29 	Unlicensed Complementary and Alternative 
121.30 	Health Care Practice. This is a onetime 
121.31 	appropriation.
121.32 	Section 125 Plans. The remaining balance 
121.33 	from the Laws 2008, chapter 358, article 5, 
121.34 	section 4, subdivision 3, appropriation for 
122.1 	Section 125 Plan Employer Incentives is 
122.2 	canceled.
122.3 	Advisory Group on Administrative 
122.4 	Expenses. Of the health care access fund 
122.5 	appropriation for fiscal year 2011, $39,000 is 
122.6 	to the commissioner for the advisory group 
122.7 	established under Minnesota Statutes, section 
122.8 	62D.31. This is a onetime appropriation.

122.9	Subd. 4.Health Protection
 		(349,000)
		985,000
	
122.10 	Base Adjustment. The general fund base 
122.11 	is increased by $194,000 in fiscal year 2012 
122.12 	and $738,000 in fiscal year 2013. 
122.13 	Birth Defects Information System. Of the 
122.14 	general fund appropriation for fiscal year 
122.15 	2011, $1,165,000 is for the Minnesota Birth 
122.16 	Defects Information System established 
122.17 	under Minnesota Statutes, section 144.2215.

122.18	Subd. 5.Administrative Support Services
 		-0-
		(100,000)
	
122.19 	The general fund base is reduced by $22,000 
122.20 	in fiscal year 2012 and $22,000 in fiscal year 
122.21 	2013.

122.22
122.23	Sec. 5. DEPARTMENT OF VETERANS 
AFFAIRS
 	$
	(50,000)
	$
	-0-
	
122.24 	Cancellation of Prior Appropriation.
122.25 	By June 30, 2010, the commissioner of 
122.26 	management and budget shall cancel the 
122.27 	$50,000 appropriation for fiscal year 2008 to 
122.28 	the board in Laws 2007, chapter 147, article 
122.29 	19, section 5, in the paragraph titled "Pay for 
122.30 	Performance."

122.31	Sec. 6. HEALTH-RELATED BOARDS

122.32	Subdivision 1.Total Appropriation
 	$
	113,000
	$
	615,000
	
123.1 	The appropriations in this section are from 
123.2 	the state government special revenue fund.
123.3 	The transfers in this section are onetime in 
123.4 	the fiscal year 2010-2011 biennium.
123.5 	The appropriations for each purpose are 
123.6 	shown in the following subdivisions.
123.7 	Transfers. In addition to transfers required 
123.8 	under Laws 2009, chapter 79, article 13, 
123.9 	section 5, subdivision 1, $301,000 in fiscal 
123.10 	year 2010 and $442,000 in fiscal year 
123.11 	2011 shall be transferred from the state 
123.12 	government special revenue fund to the 
123.13 	general fund. The boards must allocate 
123.14 	this reduction to boards carrying a positive 
123.15 	balance as of July 1, 2009.

123.16
123.17	Subd. 2.Board of Marriage and Family 
Therapy
 		47,000
		22,000
	
123.18 	Operating Costs and Rulemaking. Of 
123.19 	this appropriation, $22,000 in fiscal year 
123.20 	2010 and $22,000 in fiscal year 2011 are 
123.21 	for operating costs. This is an ongoing 
123.22 	appropriation. Of this appropriation, $25,000 
123.23 	in fiscal year 2010 is for rulemaking. This is 
123.24 	a onetime appropriation.

123.25
123.26	Subd. 3.Board of Nursing Home 
Administrators
 		51,000
		61,000

123.27	Subd. 4.Board of Pharmacy
 		-0-
		517,000
	
123.28 	Prescription Electronic Reporting. Of 
123.29 	the state government special revenue fund 
123.30 	appropriation, $517,000 in fiscal year 2011 
123.31 	is to the board to operate the prescription 
123.32 	electronic reporting system in Minnesota 
123.33 	Statutes, section 152.126. Base level funding 
123.34 	for this activity in fiscal year 2012 shall be 
123.35 	$356,000.

124.1	Subd. 5.Board of Podiatry
 		15,000
		15,000
	
124.2 	Purpose. This appropriation is to pay health 
124.3 	insurance coverage costs and to cover the 
124.4 	cost of expert witnesses in disciplinary cases. 
124.5 	This is a onetime appropriation.

124.6	Subd. 6.Board of Dentistry
 					
124.7 	Dental Therapy Program. Of the 
124.8 	appropriation to the Board of Dentistry in 
124.9 	Laws 2009, chapter 95, article 1, section 7, 
124.10 	for fiscal year 2010, $12,500 shall be awarded 
124.11 	as a grant to the University of Minnesota 
124.12 	School of Dentistry for the implementation 
124.13 	of the university's dental therapy program 
124.14 	and $12,500 shall be awarded as a grant to 
124.15 	Minnesota State Colleges and Universities 
124.16 	for the implementation of Metropolitan State 
124.17 	University's and Normandale Community 
124.18 	College's advanced dental therapy program.

124.19
124.20	Sec. 7. EMERGENCY MEDICAL SERVICES 
BOARD
 	$
	215,000
	$
	(382,000)
	
124.21 	Appropriation Transfer Repeal. Any 
124.22 	portion of the $250,000 appropriation in 
124.23 	Laws 2009, chapter 79, article 13, section 
124.24 	6, as amended by Laws 2009, chapter 
124.25 	173, article 2, section 4, not yet expended 
124.26 	or encumbered by the Department of 
124.27 	Public Safety for a medical response unit 
124.28 	reimbursement pilot program, estimated to 
124.29 	be $235,000, must be retained by or returned 
124.30 	to the Emergency Medical Services Board to 
124.31 	be spent for board purposes. This section is 
124.32 	effective the day following final enactment.

124.33	Sec. 8. UNIVERSITY OF MINNESOTA
 	$
	-0-
	$
	93,000
	
125.1 	 This appropriation is from the special 
125.2 	revenue fund for the couples on the brink 
125.3 	program.

125.4	Sec. 9. DEPARTMENT OF CORRECTIONS
 	$
	-0-
	$
	-0-
	
125.5 	Sex Offender Services. From the general 
125.6 	fund appropriations to the commissioner 
125.7 	of corrections, the commissioner shall 
125.8 	transfer $837,000 each year of the 
125.9 	biennium beginning on July 1, 2011, to the 
125.10 	commissioner of human services to provide 
125.11 	clinical treatment to incarcerated offenders. 
125.12 	This transfer shall become part of the base 
125.13 	for the Department of Corrections.

125.14	Sec. 10. DEPARTMENT OF COMMERCE
 	$
	-0-
	$
	19,000
	
125.15 	Health Plan Filings. This appropriation is 
125.16 	for the review and approval of new health 
125.17 	plan filings due to Minnesota Statutes, section 
125.18 	62Q.545. This is a onetime appropriation in 
125.19 	fiscal year 2011.

125.20 	Sec. 11. Minnesota Statutes 2008, section 214.40, subdivision 7, is amended to read:
125.21 		Subd. 7.Medical professional liability insurance. (a) Within the limit of funds 
125.22 	appropriated for this program, the administrative services unit must purchase medical 
125.23 	professional liability insurance, if available, for a health care provider who is registered in 
125.24 	accordance with subdivision 4 and who is not otherwise covered by a medical professional 
125.25 	liability insurance policy or self-insured plan either personally or through another facility 
125.26 	or employer. The administrative services unit is authorized to prorate payments or 
125.27 	otherwise limit the number of participants in the program if the costs of the insurance for 
125.28 	eligible providers exceed the funds appropriated for the program.
125.29 	(b) Coverage purchased under this subdivision must be limited to the provision of 
125.30 	health care services performed by the provider for which the provider does not receive 
125.31 	direct monetary compensation.

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

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

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

126.4	Appropriations by Fund
	
126.5		2010
	2011
	
126.6	General
	4,375,689,000
	5,209,765,000
	
126.7
126.8	State Government 
Special Revenue
	565,000
	565,000
	
126.9	Health Care Access
	450,662,000
	527,411,000
	
126.10	Federal TANF
	286,770,000
	263,458,000
	
126.11	Lottery Prize
	1,665,000
	1,665,000
	
126.12	Federal Fund
	110,000,000
	0
	
126.13 	Receipts for Systems Projects.
126.14 	Appropriations and federal receipts for 
126.15 	information systems projects for MAXIS, 
126.16 	PRISM, MMIS, and SSIS must be deposited 
126.17 	in the state system account authorized in 
126.18 	Minnesota Statutes, section 256.014. Money 
126.19 	appropriated for computer projects approved 
126.20 	by the Minnesota Office of Enterprise 
126.21 	Technology, funded by the legislature, and 
126.22 	approved by the commissioner of finance, 
126.23 	may be transferred from one project to 
126.24 	another and from development to operations 
126.25 	as the commissioner of human services 
126.26 	considers necessary, except that any transfers 
126.27 	to one project that exceed $1,000,000 or 
126.28 	multiple transfers to one project that exceed 
126.29 	$1,000,000 in total require the express 
126.30 	approval of the legislature. The preceding 
126.31 	requirement for legislative approval does not 
126.32 	apply to transfers made to establish a project's 
126.33 	initial operating budget each year; instead, 
126.34 	the requirements of section 11, subdivision 
126.35 	2, of this article apply to those transfers. Any 
126.36 	unexpended balance in the appropriation 
126.37 	for these projects does not cancel but is 
127.1 	available for ongoing development and 
127.2 	operations. Any computer project with a 
127.3 	total cost exceeding $1,000,000, including, 
127.4 	but not limited to, a replacement for the 
127.5 	proposed HealthMatch system, shall not be 
127.6 	commenced without the express approval of 
127.7 	the legislature.
127.8 	HealthMatch Systems Project. In fiscal 
127.9 	year 2010, $3,054,000 shall be transferred 
127.10 	from the HealthMatch account in the state 
127.11 	systems account in the special revenue fund 
127.12 	to the general fund.
127.13 	Nonfederal Share Transfers. The 
127.14 	nonfederal share of activities for which 
127.15 	federal administrative reimbursement is 
127.16 	appropriated to the commissioner may be 
127.17 	transferred to the special revenue fund.
127.18 	TANF Maintenance of Effort.
127.19 	(a) In order to meet the basic maintenance 
127.20 	of effort (MOE) requirements of the TANF 
127.21 	block grant specified under Code of Federal 
127.22 	Regulations, title 45, section 263.1, the 
127.23 	commissioner may only report nonfederal 
127.24 	money expended for allowable activities 
127.25 	listed in the following clauses as TANF/MOE 
127.26 	expenditures:
127.27 	(1) MFIP cash, diversionary work program, 
127.28 	and food assistance benefits under Minnesota 
127.29 	Statutes, chapter 256J;
127.30 	(2) the child care assistance programs 
127.31 	under Minnesota Statutes, sections 119B.03
127.32 	and 119B.05, and county child care 
127.33 	administrative costs under Minnesota 
127.34 	Statutes, section 119B.15;
128.1 	(3) state and county MFIP administrative 
128.2 	costs under Minnesota Statutes, chapters 
128.3 	256J and 256K;
128.4 	(4) state, county, and tribal MFIP 
128.5 	employment services under Minnesota 
128.6 	Statutes, chapters 256J and 256K;
128.7 	(5) expenditures made on behalf of 
128.8 	noncitizen MFIP recipients who qualify 
128.9 	for the medical assistance without federal 
128.10 	financial participation program under 
128.11 	Minnesota Statutes, section 256B.06, 
128.12 	subdivision 4, paragraphs (d), (e), and (j); 
128.13 	and
128.14 	(6) qualifying working family credit 
128.15 	expenditures under Minnesota Statutes, 
128.16 	section 290.0671; and
128.17 	(7) qualifying Minnesota education credit 
128.18 	expenditures under Minnesota Statutes, 
128.19 	section 290.0674.
128.20 	(b) The commissioner shall ensure that 
128.21 	sufficient qualified nonfederal expenditures 
128.22 	are made each year to meet the state's 
128.23 	TANF/MOE requirements. For the activities 
128.24 	listed in paragraph (a), clauses (2) to 
128.25 	(6), the commissioner may only report 
128.26 	expenditures that are excluded from the 
128.27 	definition of assistance under Code of 
128.28 	Federal Regulations, title 45, section 260.31.
128.29 	(c) For fiscal years beginning with state 
128.30 	fiscal year 2003, the commissioner shall 
128.31 	ensure that the maintenance of effort used 
128.32 	by the commissioner of finance for the 
128.33 	February and November forecasts required 
128.34 	under Minnesota Statutes, section 16A.103, 
128.35 	contains expenditures under paragraph (a), 
129.1 	clause (1), equal to at least 16 percent of 
129.2 	the total required under Code of Federal 
129.3 	Regulations, title 45, section 263.1.
129.4 	(d) For the federal fiscal years beginning on 
129.5 	or after October 1, 2007, the commissioner 
129.6 	may not claim an amount of TANF/MOE in 
129.7 	excess of the 75 percent standard in Code 
129.8 	of Federal Regulations, title 45, section 
129.9 	263.1(a)(2), except:
129.10 	(1) to the extent necessary to meet the 80 
129.11 	percent standard under Code of Federal 
129.12 	Regulations, title 45, section 263.1(a)(1), 
129.13 	if it is determined by the commissioner 
129.14 	that the state will not meet the TANF work 
129.15 	participation target rate for the current year;
129.16 	(2) to provide any additional amounts 
129.17 	under Code of Federal Regulations, title 45, 
129.18 	section 264.5, that relate to replacement of 
129.19 	TANF funds due to the operation of TANF 
129.20 	penalties; and
129.21 	(3) to provide any additional amounts that 
129.22 	may contribute to avoiding or reducing 
129.23 	TANF work participation penalties through 
129.24 	the operation of the excess MOE provisions 
129.25 	of Code of Federal Regulations, title 45, 
129.26 	section 261.43 (a)(2).
129.27 	For the purposes of clauses (1) to (3), 
129.28 	the commissioner may supplement the 
129.29 	MOE claim with working family credit 
129.30 	expenditures to the extent such expenditures 
129.31 	or other qualified expenditures are otherwise 
129.32 	available after considering the expenditures 
129.33 	allowed in this section.
129.34 	(e) Minnesota Statutes, section 256.011, 
129.35 	subdivision 3, which requires that federal 
130.1 	grants or aids secured or obtained under that 
130.2 	subdivision be used to reduce any direct 
130.3 	appropriations provided by law, do not apply 
130.4 	if the grants or aids are federal TANF funds.
130.5 	(f) Notwithstanding any contrary provision 
130.6 	in this article, this provision expires June 30, 
130.7 	2013.
130.8 	Working Family Credit Expenditures as 
130.9 	TANF/MOE. The commissioner may claim 
130.10 	as TANF/MOE up to $6,707,000 per year of 
130.11 	working family credit expenditures for fiscal 
130.12 	year 2010 through fiscal year 2011.
130.13 	Working Family Credit Expenditures 
130.14 	to be Claimed for TANF/MOE. The 
130.15 	commissioner may count the following 
130.16 	amounts of working family credit expenditure 
130.17 	as TANF/MOE:
130.18 	(1) fiscal year 2010, $50,973,000
130.19 	$50,897,000;
130.20 	(2) fiscal year 2011, $53,793,000
130.21 	$54,243,000;
130.22 	(3) fiscal year 2012, $23,516,000
130.23 	$23,345,000; and
130.24 	(4) fiscal year 2013, $16,808,000
130.25 	$16,585,000.
130.26 	Notwithstanding any contrary provision in 
130.27 	this article, this rider expires June 30, 2013.
130.28 	Food Stamps Employment and Training.
130.29 	(a) The commissioner shall apply for and 
130.30 	claim the maximum allowable federal 
130.31 	matching funds under United States Code, 
130.32 	title 7, section 2025, paragraph (h), for 
130.33 	state expenditures made on behalf of family 
130.34 	stabilization services participants voluntarily 
131.1 	engaged in food stamp employment and 
131.2 	training activities, where appropriate.
131.3 	(b) Notwithstanding Minnesota Statutes, 
131.4 	sections 256D.051, subdivisions 1a, 6b, 
131.5 	and 6c, and 256J.626, federal food stamps 
131.6 	employment and training funds received 
131.7 	as reimbursement of MFIP consolidated 
131.8 	fund grant expenditures for diversionary 
131.9 	work program participants and child 
131.10 	care assistance program expenditures for 
131.11 	two-parent families must be deposited in the 
131.12 	general fund. The amount of funds must be 
131.13 	limited to $3,350,000 in fiscal year 2010 
131.14 	and $4,440,000 in fiscal years 2011 through 
131.15 	2013, contingent on approval by the federal 
131.16 	Food and Nutrition Service. 
131.17 	(c) Consistent with the receipt of these federal 
131.18 	funds, the commissioner may adjust the 
131.19 	level of working family credit expenditures 
131.20 	claimed as TANF maintenance of effort. 
131.21 	Notwithstanding any contrary provision in 
131.22 	this article, this rider expires June 30, 2013.
131.23 	ARRA Food Support Administration.
131.24 	The funds available for food support 
131.25 	administration under the American Recovery 
131.26 	and Reinvestment Act (ARRA) of 2009 
131.27 	are appropriated to the commissioner 
131.28 	to pay actual costs of implementing the 
131.29 	food support benefit increases, increased 
131.30 	eligibility determinations, and outreach. Of 
131.31 	these funds, 20 percent shall be allocated 
131.32 	to the commissioner and 80 percent shall 
131.33 	be allocated to counties. The commissioner 
131.34 	shall allocate the county portion based on 
131.35 	caseload. Reimbursement shall be based on 
132.1 	actual costs reported by counties through 
132.2 	existing processes. Tribal reimbursement 
132.3 	must be made from the state portion based 
132.4 	on a caseload factor equivalent to that of a 
132.5 	county.
132.6 	ARRA Food Support Benefit Increases.
132.7 	The funds provided for food support benefit 
132.8 	increases under the Supplemental Nutrition 
132.9 	Assistance Program provisions of the 
132.10 	American Recovery and Reinvestment Act 
132.11 	(ARRA) of 2009 must be used for benefit 
132.12 	increases beginning July 1, 2009.
132.13 	Emergency Fund for the TANF Program.
132.14 	TANF Emergency Contingency funds 
132.15 	available under the American Recovery 
132.16 	and Reinvestment Act of 2009 (Public Law 
132.17 	111-5) are appropriated to the commissioner. 
132.18 	The commissioner must request TANF 
132.19 	Emergency Contingency funds from the 
132.20 	Secretary of the Department of Health 
132.21 	and Human Services to the extent the 
132.22 	commissioner meets or expects to meet the 
132.23 	requirements of section 403(c) of the Social 
132.24 	Security Act. The commissioner must seek 
132.25 	to maximize such grants. The funds received 
132.26 	must be used as appropriated. Each county 
132.27 	must maintain the county's current level of 
132.28 	emergency assistance funding under the 
132.29 	MFIP consolidated fund and use the funds 
132.30 	under this paragraph to supplement existing 
132.31 	emergency assistance funding levels.

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

132.34
132.35	Subd. 4.Children and Economic Assistance 
Grants
 					
133.1 	The amounts that may be spent from this 
133.2 	appropriation for each purpose are as follows:

133.3	(a) MFIP/DWP Grants

133.4	Appropriations by Fund
	
133.5	General
	63,205,000
	89,033,000
	
133.6	Federal TANF
	100,818,000
	84,538,000

133.7	(b) Support Services Grants

133.8	Appropriations by Fund
	
133.9	General
	8,715,000
	12,498,000
	
133.10	Federal TANF
	116,557,000
	107,457,000
	
133.11 	MFIP Consolidated Fund. The MFIP 
133.12 	consolidated fund TANF appropriation is 
133.13 	reduced by $1,854,000 in fiscal year 2010 
133.14 	and fiscal year 2011.
133.15 	Notwithstanding Minnesota Statutes, section 
133.16 	256J.626, subdivision 8, paragraph (b), the 
133.17 	commissioner shall reduce proportionately 
133.18 	the reimbursement to counties for 
133.19 	administrative expenses.
133.20 	Subsidized Employment Funding Through 
133.21 	ARRA. The commissioner is authorized to 
133.22 	apply for TANF emergency fund grants for 
133.23 	subsidized employment activities. Growth 
133.24 	in expenditures for subsidized employment 
133.25 	within the supported work program and the 
133.26 	MFIP consolidated fund over the amount 
133.27 	expended in the calendar quarters in the 
133.28 	TANF emergency fund base year shall be 
133.29 	used to leverage the TANF emergency fund 
133.30 	grants for subsidized employment and to 
133.31 	fund supported work. The commissioner 
133.32 	shall develop procedures to maximize 
133.33 	reimbursement of these expenditures over the 
133.34 	TANF emergency fund base year quarters, 
133.35 	and may contract directly with employers 
134.1 	and providers to maximize these TANF 
134.2 	emergency fund grants.
134.3 	Supported Work. Of the TANF 
134.4 	appropriation, $4,700,000 in fiscal year 2010 
134.5 	and $4,700,000 in fiscal year 2011 are to the 
134.6 	commissioner for supported work for MFIP 
134.7 	recipients and is available until expended. 
134.8 	Supported work includes paid transitional 
134.9 	work experience and a continuum of 
134.10 	employment assistance, including outreach 
134.11 	and recruitment, program orientation 
134.12 	and intake, testing and assessment, job 
134.13 	development and marketing, preworksite 
134.14 	training, supported worksite experience, 
134.15 	job coaching, and postplacement follow-up, 
134.16 	in addition to extensive case management 
134.17 	and referral services. This is a onetime 
134.18 	appropriation.
134.19 	Base Adjustment. The general fund base 
134.20 	is reduced by $3,783,000 in each of fiscal 
134.21 	years 2012 and 2013. The TANF fund base 
134.22 	is increased by $5,004,000 in each of fiscal 
134.23 	years 2012 and 2013.
134.24 	Integrated Services Program Funding.
134.25 	The TANF appropriation for integrated 
134.26 	services program funding is $1,250,000 in 
134.27 	fiscal year 2010 and $0 in fiscal year 2011 
134.28 	and the base for fiscal years 2012 and 2013 
134.29 	is $0.
134.30 	TANF Emergency Fund; Nonrecurrent 
134.31 	Short-Term Benefits.(a) TANF emergency 
134.32 	contingency fund grants received due to 
134.33 	increases in expenditures for nonrecurrent 
134.34 	short-term benefits must be used to offset the 
134.35 	increase in these expenditures for counties 
135.1 	under the MFIP consolidated fund, under 
135.2 	Minnesota Statutes, section 256J.626, 
135.3 	and the diversionary work program. The 
135.4 	commissioner shall develop procedures 
135.5 	to maximize reimbursement of these 
135.6 	expenditures over the TANF emergency fund 
135.7 	base year quarters. Growth in expenditures 
135.8 	for the diversionary work program over the 
135.9 	amount expended in the calendar quarters in 
135.10 	the TANF emergency fund base year shall be 
135.11 	used to leverage these funds.
135.12 	(b) To the extent that the commissioner 
135.13 	can claim eligible tax credit growth as 
135.14 	nonrecurrent short-term benefits, the 
135.15 	commissioner shall use those funds to 
135.16 	leverage the increased expenditures in 
135.17 	paragraph (a).
135.18 	(c) TANF emergency funds for nonrecurrent 
135.19 	short-term benefits received in excess of the 
135.20 	amounts necessary for paragraphs (a) and (b) 
135.21 	shall be used to reimburse the general fund 
135.22 	for the costs of eligible tax credits in fiscal 
135.23 	year 2011. The amount of such funds shall 
135.24 	not exceed $18,964,000 in fiscal year 2010. 
135.25 	(d) This rider is effective the day following 
135.26 	final enactment.

135.27	(c) MFIP Child Care Assistance Grants
		61,171,000
		65,214,000
	
135.28 	Acceleration of ARRA Child Care and 
135.29 	Development Fund Expenditure. The 
135.30 	commissioner must liquidate all child care 
135.31 	and development money available under 
135.32 	the American Recovery and Reinvestment 
135.33 	Act (ARRA) of 2009, Public Law 111-5, 
135.34 	by September 30, 2010. In order to expend 
135.35 	those funds by September 30, 2010, the 
136.1 	commissioner may redesignate and expend 
136.2 	the ARRA child care and development funds 
136.3 	appropriated in fiscal year 2011 for purposes 
136.4 	under this section for related purposes that 
136.5 	will allow liquidation by September 30, 
136.6 	2010. Child care and development funds 
136.7 	otherwise available to the commissioner 
136.8 	for those related purposes shall be used to 
136.9 	fund the purposes from which the ARRA 
136.10 	child care and development funds had been 
136.11 	redesignated.
136.12 	School Readiness Service Agreements.
136.13 	$400,000 in fiscal year 2010 and $400,000 
136.14 	in fiscal year 2011 are from the federal 
136.15 	TANF fund to the commissioner of human 
136.16 	services consistent with federal regulations 
136.17 	for the purpose of school readiness service 
136.18 	agreements under Minnesota Statutes, 
136.19 	section 119B.231. This is a onetime 
136.20 	appropriation. Any unexpended balance the 
136.21 	first year is available in the second year.

136.22
136.23	(d) Basic Sliding Fee Child Care Assistance 
Grants
		40,100,000
		45,092,000
	
136.24 	School Readiness Service Agreements.
136.25 	$257,000 in fiscal year 2010 and $257,000 
136.26 	in fiscal year 2011 are from the general 
136.27 	fund for the purpose of school readiness 
136.28 	service agreements under Minnesota 
136.29 	Statutes, section 119B.231. This is a onetime 
136.30 	appropriation. Any unexpended balance the 
136.31 	first year is available in the second year.
136.32 	Child Care Development Fund 
136.33 	Unexpended Balance. In addition to 
136.34 	the amount provided in this section, the 
136.35 	commissioner shall expend $5,244,000 in 
136.36 	fiscal year 2010 from the federal child care 
137.1 	development fund unexpended balance 
137.2 	for basic sliding fee child care under 
137.3 	Minnesota Statutes, section 119B.03. The 
137.4 	commissioner shall ensure that all child 
137.5 	care and development funds are expended 
137.6 	according to the federal child care and 
137.7 	development fund regulations.
137.8 	Basic Sliding Fee. $4,000,000 in fiscal year 
137.9 	2010 and $4,000,000 in fiscal year 2011 are 
137.10 	from the federal child care development 
137.11 	funds received from the American Recovery 
137.12 	and Reinvestment Act of 2009, Public 
137.13 	Law 111-5, to the commissioner of human 
137.14 	services consistent with federal regulations 
137.15 	for the purpose of basic sliding fee child care 
137.16 	assistance under Minnesota Statutes, section 
137.17 	119B.03. This is a onetime appropriation. 
137.18 	Any unexpended balance the first year is 
137.19 	available in the second year.
137.20 	Basic Sliding Fee Allocation for Calendar 
137.21 	Year 2010. Notwithstanding Minnesota 
137.22 	Statutes, section 119B.03, subdivision 6, 
137.23 	in calendar year 2010, basic sliding fee 
137.24 	funds shall be distributed according to 
137.25 	this provision. Funds shall be allocated 
137.26 	first in amounts equal to each county's 
137.27 	guaranteed floor, according to Minnesota 
137.28 	Statutes, section 119B.03, subdivision 8, 
137.29 	with any remaining available funds allocated 
137.30 	according to the following formula:
137.31 	(a) Up to one-fourth of the funds shall be 
137.32 	allocated in proportion to the number of 
137.33 	families participating in the transition year 
137.34 	child care program as reported during and 
137.35 	averaged over the most recent six months 
138.1 	completed at the time of the notice of 
138.2 	allocation. Funds in excess of the amount 
138.3 	necessary to serve all families in this category 
138.4 	shall be allocated according to paragraph (d).
138.5 	(b) Up to three-fourths of the funds shall 
138.6 	be allocated in proportion to the average 
138.7 	of each county's most recent six months of 
138.8 	reported waiting list as defined in Minnesota 
138.9 	Statutes, section 119B.03, subdivision 2, and 
138.10 	the reinstatement list of those families whose 
138.11 	assistance was terminated with the approval 
138.12 	of the commissioner under Minnesota Rules, 
138.13 	part 3400.0183, subpart 1. Funds in excess 
138.14 	of the amount necessary to serve all families 
138.15 	in this category shall be allocated according 
138.16 	to paragraph (d).
138.17 	(c) The amount necessary to serve all families 
138.18 	in paragraphs (a) and (b) shall be calculated 
138.19 	based on the basic sliding fee average cost of 
138.20 	care per family in the county with the highest 
138.21 	cost in the most recently completed calendar 
138.22 	year.
138.23 	(d) Funds in excess of the amount necessary 
138.24 	to serve all families in paragraphs (a) and 
138.25 	(b) shall be allocated in proportion to each 
138.26 	county's total expenditures for the basic 
138.27 	sliding fee child care program reported 
138.28 	during the most recent fiscal year completed 
138.29 	at the time of the notice of allocation. To 
138.30 	the extent that funds are available, and 
138.31 	notwithstanding Minnesota Statutes, section 
138.32 	119B.03, subdivision 8, for the period 
138.33 	January 1, 2011, to December 31, 2011, each 
138.34 	county's guaranteed floor must be equal to its 
138.35 	original calendar year 2010 allocation.
139.1 	Base Adjustment. The general fund base is 
139.2 	decreased by $257,000 in each of fiscal years 
139.3 	2012 and 2013.

139.4	(e) Child Care Development Grants
		1,487,000
		1,487,000
	
139.5 	Family, friends, and neighbor grants.
139.6 	$375,000 in fiscal year 2010 and $375,000 
139.7 	in fiscal year 2011 are from the child 
139.8 	care development fund required targeted 
139.9 	quality funds for quality expansion and 
139.10 	infant/toddler from the American Recovery 
139.11 	and Reinvestment Act of 2009, Public 
139.12 	Law 111-5, to the commissioner of human 
139.13 	services for family, friends, and neighbor 
139.14 	grants under Minnesota Statutes, section 
139.15 	119B.232. This appropriation may be used 
139.16 	on programs receiving family, friends, and 
139.17 	neighbor grant funds as of June 30, 2009, 
139.18 	or on new programs or projects. This is a 
139.19 	onetime appropriation. Any unexpended 
139.20 	balance the first year is available in the 
139.21 	second year.
139.22 	Voluntary quality rating system training, 
139.23 	coaching, consultation, and supports.
139.24 	$633,000 in fiscal year 2010 and $633,000 
139.25 	in fiscal year 2011 are from the federal child 
139.26 	care development fund required targeted 
139.27 	quality funds for quality expansion and 
139.28 	infant/toddler from the American Recovery 
139.29 	and Reinvestment Act of 2009, Public 
139.30 	Law 111-5, to the commissioner of human 
139.31 	services consistent with federal regulations 
139.32 	for the purpose of providing grants to provide 
139.33 	statewide child-care provider training, 
139.34 	coaching, consultation, and supports to 
139.35 	prepare for the voluntary Minnesota quality 
140.1 	rating system rating tool. This is a onetime 
140.2 	appropriation. Any unexpended balance the 
140.3 	first year is available in the second year.
140.4 	Voluntary quality rating system. $184,000 
140.5 	in fiscal year 2010 and $1,200,000 in fiscal 
140.6 	year 2011 are from the federal child care 
140.7 	development fund required targeted funds for 
140.8 	quality expansion and infant/toddler from the 
140.9 	American Recovery and Reinvestment Act of 
140.10 	2009, Public Law 111-5, to the commissioner 
140.11 	of human services consistent with federal 
140.12 	regulations for the purpose of implementing 
140.13 	the voluntary Parent Aware quality star 
140.14 	rating system pilot in coordination with the 
140.15 	Minnesota Early Learning Foundation. The 
140.16 	appropriation for the first year is to complete 
140.17 	and promote the voluntary Parent Aware 
140.18 	quality rating system pilot program through 
140.19 	June 30, 2010, and the appropriation for 
140.20 	the second year is to continue the voluntary 
140.21 	Minnesota quality rating system pilot 
140.22 	through June 30, 2011. This is a onetime 
140.23 	appropriation. Any unexpended balance the 
140.24 	first year is available in the second year.

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

140.26	(g) Children's Services Grants

140.27	Appropriations by Fund
	
140.28	General
	48,333,000
	50,498,000
	
140.29	Federal TANF
	340,000
	240,000
	
140.30 	Base Adjustment. The general fund base is 
140.31 	decreased by $5,371,000 in fiscal year 2012 
140.32 	and decreased $5,371,000 in fiscal year 2013.
140.33 	Privatized Adoption Grants. Federal 
140.34 	reimbursement for privatized adoption grant 
140.35 	and foster care recruitment grant expenditures 
141.1 	is appropriated to the commissioner for 
141.2 	adoption grants and foster care and adoption 
141.3 	administrative purposes.
141.4 	Adoption Assistance Incentive Grants.
141.5 	Federal funds available during fiscal year 
141.6 	2010 and fiscal year 2011 for the adoption 
141.7 	incentive grants are appropriated to the 
141.8 	commissioner for postadoption services 
141.9 	including parent support groups.
141.10 	Adoption Assistance and Relative Custody 
141.11 	Assistance. The commissioner may transfer 
141.12 	unencumbered appropriation balances for 
141.13 	adoption assistance and relative custody 
141.14 	assistance between fiscal years and between 
141.15 	programs.

141.16	(h) Children and Community Services Grants
		67,663,000
		67,542,000
	
141.17 	Targeted Case Management Temporary 
141.18 	Funding Adjustment. The commissioner 
141.19 	shall recover from each county and tribe 
141.20 	receiving a targeted case management 
141.21 	temporary funding payment in fiscal year 
141.22 	2008 an amount equal to that payment. The 
141.23 	commissioner shall recover one-half of the 
141.24 	funds by February 1, 2010, and the remainder 
141.25 	by February 1, 2011. At the commissioner's 
141.26 	discretion and at the request of a county 
141.27 	or tribe, the commissioner may revise 
141.28 	the payment schedule, but full payment 
141.29 	must not be delayed beyond May 1, 2011. 
141.30 	The commissioner may use the recovery 
141.31 	procedure under Minnesota Statutes, section 
141.32 	256.017, to recover the funds. Recovered 
141.33 	funds must be deposited into the general 
141.34 	fund.

141.35	(i) General Assistance Grants
		48,215,000
		48,608,000
	
142.1 	General Assistance Standard. The 
142.2 	commissioner shall set the monthly standard 
142.3 	of assistance for general assistance units 
142.4 	consisting of an adult recipient who is 
142.5 	childless and unmarried or living apart 
142.6 	from parents or a legal guardian at $203. 
142.7 	The commissioner may reduce this amount 
142.8 	according to Laws 1997, chapter 85, article 
142.9 	3, section 54.
142.10 	Emergency General Assistance. The 
142.11 	amount appropriated for emergency general 
142.12 	assistance funds is limited to no more 
142.13 	than $7,889,812 in fiscal year 2010 and 
142.14 	$7,889,812 in fiscal year 2011. Funds 
142.15 	to counties must be allocated by the 
142.16 	commissioner using the allocation method 
142.17 	specified in Minnesota Statutes, section 
142.18 	256D.06.

142.19	(j) Minnesota Supplemental Aid Grants
		33,930,000
		35,191,000
	
142.20 	Emergency Minnesota Supplemental 
142.21 	Aid Funds. The amount appropriated for 
142.22 	emergency Minnesota supplemental aid 
142.23 	funds is limited to no more than $1,100,000 
142.24 	in fiscal year 2010 and $1,100,000 in fiscal 
142.25 	year 2011. Funds to counties must be 
142.26 	allocated by the commissioner using the 
142.27 	allocation method specified in Minnesota 
142.28 	Statutes, section 256D.46.

142.29	(k) Group Residential Housing Grants
		111,778,000
		114,034,000
	
142.30 	Group Residential Housing Costs 
142.31 	Refinanced. (a) Effective July 1, 2011, the 
142.32 	commissioner shall increase the home and 
142.33 	community-based service rates and county 
142.34 	allocations provided to programs for persons 
142.35 	with disabilities established under section 
143.1 	1915(c) of the Social Security Act to the 
143.2 	extent that these programs will be paying 
143.3 	for the costs above the rate established 
143.4 	in Minnesota Statutes, section 256I.05, 
143.5 	subdivision 1.
143.6 	(b) For persons receiving services under 
143.7 	Minnesota Statutes, section 245A.02, who 
143.8 	reside in licensed adult foster care beds 
143.9 	for which a difficulty of care payment 
143.10 	was being made under Minnesota Statutes, 
143.11 	section 256I.05, subdivision 1c, paragraph 
143.12 	(b), counties may request an exception to 
143.13 	the individual's service authorization not to 
143.14 	exceed the difference between the client's 
143.15 	monthly service expenditures plus the 
143.16 	amount of the difficulty of care payment.

143.17	(l) Children's Mental Health Grants
		16,885,000
		16,882,000
	
143.18 	Funding Usage. Up to 75 percent of a fiscal 
143.19 	year's appropriation for children's mental 
143.20 	health grants may be used to fund allocations 
143.21 	in that portion of the fiscal year ending 
143.22 	December 31.

143.23
143.24	(m) Other Children and Economic Assistance 
Grants
		16,047,000
		15,339,000
	
143.25 	Fraud Prevention Grants. Of this 
143.26 	appropriation, $228,000 in fiscal year 2010 
143.27 	and $228,000 $379,000 in fiscal year 2011 
143.28 	is to the commissioner for fraud prevention 
143.29 	grants to counties.
143.30 	Homeless and Runaway Youth. $218,000 
143.31 	in fiscal year 2010 is for the Runaway 
143.32 	and Homeless Youth Act under Minnesota 
143.33 	Statutes, section 256K.45. Funds shall be 
143.34 	spent in each area of the continuum of care 
143.35 	to ensure that programs are meeting the 
144.1 	greatest need. Any unexpended balance in 
144.2 	the first year is available in the second year. 
144.3 	Beginning July 1, 2011, the base is increased 
144.4 	by $119,000 each year.
144.5 	ARRA Homeless Youth Funds. To the 
144.6 	extent permitted under federal law, the 
144.7 	commissioner shall designate $2,500,000 
144.8 	of the Homeless Prevention and Rapid 
144.9 	Re-Housing Program funds provided under 
144.10 	the American Recovery and Reinvestment 
144.11 	Act of 2009, Public Law 111-5, for agencies 
144.12 	providing homelessness prevention and rapid 
144.13 	rehousing services to youth.
144.14 	Supportive Housing Services. $1,500,000 
144.15 	each year is for supportive services under 
144.16 	Minnesota Statutes, section 256K.26. This is 
144.17 	a onetime appropriation. 
144.18 	Community Action Grants. Community 
144.19 	action grants are reduced one time by 
144.20 	$1,794,000 each year. This reduction is due 
144.21 	to the availability of federal funds under the 
144.22 	American Recovery and Reinvestment Act.
144.23 	Base Adjustment. The general fund base 
144.24 	is increased by $773,000 $903,000 in fiscal 
144.25 	year 2012 and $773,000 $413,000 in fiscal 
144.26 	year 2013.
144.27 	Federal ARRA Funds for Existing 
144.28 	Programs. (a) Federal funds received by the 
144.29 	commissioner for the emergency food and 
144.30 	shelter program from the American Recovery 
144.31 	and Reinvestment Act of 2009, Public 
144.32 	Law 111-5, but not previously approved 
144.33 	by the legislature are appropriated to the 
144.34 	commissioner for the purposes of the grant 
144.35 	program.
145.1 	(b) Federal funds received by the 
145.2 	commissioner for the emergency shelter 
145.3 	grant program including the Homelessness 
145.4 	Prevention and Rapid Re-Housing 
145.5 	Program from the American Recovery and 
145.6 	Reinvestment Act of 2009, Public Law 
145.7 	111-5, are appropriated to the commissioner 
145.8 	for the purposes of the grant programs.
145.9 	(c) Federal funds received by the 
145.10 	commissioner for the emergency food 
145.11 	assistance program from the American 
145.12 	Recovery and Reinvestment Act of 2009, 
145.13 	Public Law 111-5, are appropriated to the 
145.14 	commissioner for the purposes of the grant 
145.15 	program.
145.16 	(d) Federal funds received by the 
145.17 	commissioner for senior congregate meals 
145.18 	and senior home-delivered meals from the 
145.19 	American Recovery and Reinvestment Act 
145.20 	of 2009, Public Law 111-5, are appropriated 
145.21 	to the commissioner for the Minnesota Board 
145.22 	on Aging, for purposes of the grant programs.
145.23 	(e) Federal funds received by the 
145.24 	commissioner for the community services 
145.25 	block grant program from the American 
145.26 	Recovery and Reinvestment Act of 2009, 
145.27 	Public Law 111-5, are appropriated to the 
145.28 	commissioner for the purposes of the grant 
145.29 	program.
145.30 	Long-Term Homeless Supportive 
145.31 	Service Fund Appropriation. To the 
145.32 	extent permitted under federal law, the 
145.33 	commissioner shall designate $3,000,000 
145.34 	of the Homelessness Prevention and Rapid 
145.35 	Re-Housing Program funds provided under 
146.1 	the American Recovery and Reinvestment 
146.2 	Act of 2009, Public Law, 111-5, to the 
146.3 	long-term homeless service fund under 
146.4 	Minnesota Statutes, section 256K.26. This 
146.5 	appropriation shall become available by July 
146.6 	1, 2009. This paragraph is effective the day 
146.7 	following final enactment.

146.8 	Sec. 14. Laws 2009, chapter 79, article 13, section 3, subdivision 8, as amended by 
146.9 	Laws 2009, chapter 173, article 2, section 1, subdivision 8, is amended to read:

146.10	Subd. 8.Continuing Care Grants
 					
146.11 	The amounts that may be spent from the 
146.12 	appropriation for each purpose are as follows:

146.13	(a) Aging and Adult Services Grants
		13,499,000
		15,805,000
	
146.14 	Base Adjustment. The general fund base is 
146.15 	increased by $5,751,000 in fiscal year 2012 
146.16 	and $6,705,000 in fiscal year 2013.
146.17 	Information and Assistance 
146.18 	Reimbursement. Federal administrative 
146.19 	reimbursement obtained from information 
146.20 	and assistance services provided by the 
146.21 	Senior LinkAge or Disability Linkage lines 
146.22 	to people who are identified as eligible for 
146.23 	medical assistance shall be appropriated to 
146.24 	the commissioner for this activity.
146.25 	Community Service Development Grant 
146.26 	Reduction. Funding for community service 
146.27 	development grants must be reduced by 
146.28 	$260,000 for fiscal year 2010; $284,000 in 
146.29 	fiscal year 2011; $43,000 in fiscal year 2012; 
146.30 	and $43,000 in fiscal year 2013. Base level 
146.31 	funding shall be restored in fiscal year 2014.
146.32 	Community Service Development Grant 
146.33 	Community Initiative. Funding for 
147.1 	community service development grants shall 
147.2 	be used to offset the cost of aging support 
147.3 	grants. Base level funding shall be restored 
147.4 	in fiscal year 2014.
147.5 	Senior Nutrition Use of Federal Funds.
147.6 	For fiscal year 2010, general fund grants 
147.7 	for home-delivered meals and congregate 
147.8 	dining shall be reduced by $500,000. The 
147.9 	commissioner must replace these general 
147.10 	fund reductions with equal amounts from 
147.11 	federal funding for senior nutrition from the 
147.12 	American Recovery and Reinvestment Act 
147.13 	of 2009.

147.14	(b) Alternative Care Grants
		50,234,000
		48,576,000
	
147.15 	Base Adjustment. The general fund base is 
147.16 	decreased by $3,598,000 in fiscal year 2012 
147.17 	and $3,470,000 in fiscal year 2013.
147.18 	Alternative Care Transfer. Any money 
147.19 	allocated to the alternative care program that 
147.20 	is not spent for the purposes indicated does 
147.21 	not cancel but must be transferred to the 
147.22 	medical assistance account.

147.23
147.24	(c) Medical Assistance Grants; Long-Term 
Care Facilities.
		367,444,000
		419,749,000

147.25
147.26	(d) Medical Assistance Long-Term Care 
Waivers and Home Care Grants
		853,567,000
		1,039,517,000
	
147.27 	Manage Growth in TBI and CADI 
147.28 	Waivers. During the fiscal years beginning 
147.29 	on July 1, 2009, and July 1, 2010, the 
147.30 	commissioner shall allocate money for home 
147.31 	and community-based waiver programs 
147.32 	under Minnesota Statutes, section 256B.49, 
147.33 	to ensure a reduction in state spending that is 
147.34 	equivalent to limiting the caseload growth of 
147.35 	the TBI waiver to 12.5 allocations per month 
148.1 	each year of the biennium and the CADI 
148.2 	waiver to 95 allocations per month each year 
148.3 	of the biennium. Limits do not apply: (1) 
148.4 	when there is an approved plan for nursing 
148.5 	facility bed closures for individuals under 
148.6 	age 65 who require relocation due to the 
148.7 	bed closure; (2) to fiscal year 2009 waiver 
148.8 	allocations delayed due to unallotment; or (3) 
148.9 	to transfers authorized by the commissioner 
148.10 	from the personal care assistance program 
148.11 	of individuals having a home care rating 
148.12 	of "CS," "MT," or "HL." Priorities for the 
148.13 	allocation of funds must be for individuals 
148.14 	anticipated to be discharged from institutional 
148.15 	settings or who are at imminent risk of a 
148.16 	placement in an institutional setting.
148.17 	Manage Growth in DD Waiver. The 
148.18 	commissioner shall manage the growth in 
148.19 	the DD waiver by limiting the allocations 
148.20 	included in the February 2009 forecast to 15 
148.21 	additional diversion allocations each month 
148.22 	for the calendar years that begin on January 
148.23 	1, 2010, and January 1, 2011. Additional 
148.24 	allocations must be made available for 
148.25 	transfers authorized by the commissioner 
148.26 	from the personal care program of individuals 
148.27 	having a home care rating of "CS," "MT," 
148.28 	or "HL."
148.29 	Adjustment to Lead Agency Waiver 
148.30 	Allocations. Prior to the availability of the 
148.31 	alternative license defined in Minnesota 
148.32 	Statutes, section 245A.11, subdivision 8, 
148.33 	the commissioner shall reduce lead agency 
148.34 	waiver allocations for the purposes of 
148.35 	implementing a moratorium on corporate 
148.36 	foster care.
149.1 	Alternatives to Personal Care Assistance 
149.2 	Services. Base level funding of $3,237,000 
149.3 	in fiscal year 2012 and $4,856,000 in 
149.4 	fiscal year 2013 is to implement alternative 
149.5 	services to personal care assistance services 
149.6 	for persons with mental health and other 
149.7 	behavioral challenges who can benefit 
149.8 	from other services that more appropriately 
149.9 	meet their needs and assist them in living 
149.10 	independently in the community. These 
149.11 	services may include, but not be limited to, a 
149.12 	1915(i) state plan option.

149.13	(e) Mental Health Grants

149.14	Appropriations by Fund
	
149.15	General
	77,739,000
	77,739,000
	
149.16	Health Care Access
	750,000
	750,000
	
149.17	Lottery Prize
	1,508,000
	1,508,000
	
149.18 	Funding Usage. Up to 75 percent of a fiscal 
149.19 	year's appropriation for adult mental health 
149.20 	grants may be used to fund allocations in that 
149.21 	portion of the fiscal year ending December 
149.22 	31.

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

149.24	(g) Chemical Dependency Entitlement Grants
		111,303,000
		122,822,000
	
149.25 	Payments for Substance Abuse Treatment.
149.26 	For services providedplacements beginning 
149.27 	during fiscal years 2010 and 2011, 
149.28 	county-negotiated rates and provider claims 
149.29 	to the consolidated chemical dependency 
149.30 	fund must not exceed the lesser of:
149.31 	(1)  rates charged for these services on 
149.32 	January 1, 2009; or
150.1 	(2) 160 percent of the average rate on January 
150.2 	1, 2009, for each group of vendors with 
150.3 	similar attributes.
150.4 	Effective July 1, 2010, rates that were above 
150.5 	the average rate on January 1, 2009, are 
150.6 	reduced by five percent from the rates in 
150.7 	effect on June 1, 2010. Services provided 
150.8 	under this section by state-operated services 
150.9 	are exempt from the rate reduction. For 
150.10 	services provided in fiscal years 2012 
150.11 	and 2013, statewide average rates the 
150.12 	statewide aggregate payment  under the 
150.13 	new rate methodology to be developed 
150.14 	under Minnesota Statutes, section 254B.12, 
150.15 	must not exceed the average rates charged 
150.16 	for these services on January 1, 2009
150.17 	projected aggregate payment under the 
150.18 	rates in effect for fiscal year 2011, plus a 
150.19 	state share increase of $3,787,000 for fiscal 
150.20 	year 2012 and $5,023,000 for fiscal year 
150.21 	2013. Notwithstanding any provision to the 
150.22 	contrary in this article, this provision expires 
150.23 	on June 30, 2013.
150.24 	Chemical Dependency Special Revenue 
150.25 	Account. For fiscal year 2010, $750,000 
150.26 	must be transferred from the consolidated 
150.27 	chemical dependency treatment fund 
150.28 	administrative account and deposited into the 
150.29 	general fund.
150.30 	County CD Share of MA Costs for 
150.31 	ARRA Compliance. Notwithstanding the 
150.32 	provisions of Minnesota Statutes, chapter 
150.33 	254B, for chemical dependency services 
150.34 	provided during the period October 1, 2008, 
150.35 	to December 31, 2010, and reimbursed by 
151.1 	medical assistance at the enhanced federal 
151.2 	matching rate provided under the American 
151.3 	Recovery and Reinvestment Act of 2009, the 
151.4 	county share is 30 percent of the nonfederal 
151.5 	share. This provision is effective the day 
151.6 	following final enactment.

151.7
151.8	(h) Chemical Dependency Nonentitlement 
Grants
		1,729,000
		1,729,000

151.9	(i) Other Continuing Care Grants
		19,201,000
		17,528,000
	
151.10 	Base Adjustment. The general fund base is 
151.11 	increased by $2,639,000 in fiscal year 2012 
151.12 	and increased by $3,854,000 in fiscal year 
151.13 	2013.
151.14 	Technology Grants. $650,000 in fiscal 
151.15 	year 2010 and $1,000,000 in fiscal year 
151.16 	2011 are for technology grants, case 
151.17 	consultation, evaluation, and consumer 
151.18 	information grants related to developing and 
151.19 	supporting alternatives to shift-staff foster 
151.20 	care residential service models.
151.21 	Other Continuing Care Grants; HIV 
151.22 	Grants. Money appropriated for the HIV 
151.23 	drug and insurance grant program in fiscal 
151.24 	year 2010 may be used in either year of the 
151.25 	biennium.
151.26 	Quality Assurance Commission. Effective 
151.27 	July 1, 2009, state funding for the quality 
151.28 	assurance commission under Minnesota 
151.29 	Statutes, section 256B.0951, is canceled.

151.30 	Sec. 15. Laws 2009, chapter 79, article 13, section 5, subdivision 8, as amended by 
151.31 	Laws 2009, chapter 173, article 2, section 3, subdivision 8, is amended to read:

151.32
151.33	Subd. 8.Board of Nursing Home 
Administrators
 		1,211,000
		1,023,000
	
152.1 	Administrative Services Unit - Operating 
152.2 	Costs. Of this appropriation, $524,000 
152.3 	in fiscal year 2010 and $526,000 in 
152.4 	fiscal year 2011 are for operating costs 
152.5 	of the administrative services unit. The 
152.6 	administrative services unit may receive 
152.7 	and expend reimbursements for services 
152.8 	performed by other agencies.
152.9 	Administrative Services Unit - Retirement 
152.10 	Costs. Of this appropriation in fiscal year 
152.11 	2010, $201,000 is for onetime retirement 
152.12 	costs in the health-related boards. This 
152.13 	funding may be transferred to the health 
152.14 	boards incurring those costs for their 
152.15 	payment. These funds are available either 
152.16 	year of the biennium.
152.17 	Administrative Services Unit - Volunteer 
152.18 	Health Care Provider Program. Of this 
152.19 	appropriation, $79,000 $130,000  in fiscal 
152.20 	year 2010 and $89,000 $150,000  in fiscal 
152.21 	year 2011 are to pay for medical professional 
152.22 	liability coverage required under Minnesota 
152.23 	Statutes, section 214.40.
152.24 	Administrative Services Unit - Contested 
152.25 	Cases and Other Legal Proceedings. Of 
152.26 	this appropriation, $200,000 in fiscal year 
152.27 	2010 and $200,000 in fiscal year 2011 are 
152.28 	for costs of contested case hearings and other 
152.29 	unanticipated costs of legal proceedings 
152.30 	involving health-related boards funded 
152.31 	under this section and for unforeseen 
152.32 	expenditures of an urgent nature. Upon 
152.33 	certification of a health-related board to the 
152.34 	administrative services unit that the costs 
152.35 	will be incurred and that there is insufficient 
153.1 	money available to pay for the costs out of 
153.2 	money currently available to that board, the 
153.3 	administrative services unit is authorized 
153.4 	to transfer money from this appropriation 
153.5 	to the board for payment of those costs 
153.6 	with the approval of the commissioner of 
153.7 	finance. This appropriation does not cancel. 
153.8 	Any unencumbered and unspent balances 
153.9 	remain available for these expenditures in 
153.10 	subsequent fiscal years. The boards receiving 
153.11 	funds under this section shall include these 
153.12 	amounts when setting fees to cover their 
153.13 	costs.

153.14 	Sec. 16. EXPIRATION OF UNCODIFIED LANGUAGE.
 153.15 	All uncodified language contained in this article expires on June 30, 2011, unless a 
153.16 	different expiration date is explicit.

153.17 	Sec. 17. EFFECTIVE DATE.
 153.18 	The provisions in this article are effective July 1, 2010, unless a different effective 
153.19 	date is explicit.

153.20 	ARTICLE 8
153.21 	HUMAN SERVICES FORECAST ADJUSTMENTS

153.22	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
153.23 	The amounts shown in this section summarize direct appropriations, by fund, made 
153.24 	in this article.

153.25			2010
		2011
		Total
	
153.26	General
	$
	(109,876,000)
	$
	(28,344,000)
	$
	(138,220,000)
	
153.27	Health Care Access
	$
	99,654,000
	$
	276,500,000
	$
	376,154,000
	
153.28	Federal TANF
	$
	(9,830,000)
	$
	15,133,000
	$
	5,303,000
	
153.29	Total
	$
	(20,052,000)
	$
	263,289,000
	$
	243,237,000

153.30	Sec. 2. DEPARTMENT OF HUMAN SERVICES APPROPRIATION.
 	
153.31 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
153.32 	in parentheses, subtracted from the appropriations in Laws 2009, chapter 79, article 13, 
154.1 	as amended by Laws 2009, chapter 173, article 2, to the agencies and for the purposes 
154.2 	specified in this article. The appropriations are from the general fund, or another named 
154.3 	fund, and are available for the fiscal years indicated for each purpose. The figures "2010" 
154.4 	and "2011" used in this article mean that the addition to or subtraction from appropriations 
154.5 	listed under them is available for the fiscal year ending June 30, 2010, or June 30, 2011, 
154.6 	respectively. "The first year" is fiscal year 2010. "The second year" is fiscal year 2011. 
154.7 	"The biennium" is fiscal years 2010 and 2011. Supplemental appropriations and reductions 
154.8 	for the fiscal year ending June 30, 2010, are effective the day following final enactment 
154.9 	unless a different effective date is explicit.

154.10				APPROPRIATIONS
	
154.11				Available for the Year
	
154.12				Ending June 30
	
154.13					2010
		2011

154.14
154.15	Sec. 3. DEPARTMENT OF HUMAN 
SERVICES

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

154.17	Appropriations by Fund
	
154.18		2010
	2011
	
154.19	General
	(109,876,000)
	(28,344,000)
	
154.20	Health Care Access
	99,654,000
	276,500,000
	
154.21	Federal TANF
	(9,830,000)
	15,133,000
	
154.22 	The amounts that may be spent for each 
154.23 	purpose are specified in the following 
154.24 	subdivisions.

154.25	Subd. 2.Revenue and Pass-through

154.26	Appropriations by Fund
	
154.27	Federal TANF
	390,000
	(251,000)

154.28
154.29	Subd. 3.Children and Economic Assistance 
Grants

154.30	Appropriations by Fund
	
154.31	General
	4,489,000
	(4,140,000)
	
154.32	Federal TANF
	(10,220,000)
	15,384,000
	
154.33 	The amounts that may be spent from this 
154.34 	appropriation are as follows:

154.35	(a) MFIP Grants

155.1	General
	7,916,000
	(14,481,000)
	
155.2	Federal TANF
	(10,220,000)
	15,384,000

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

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

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

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

155.7	Subd. 4.Basic Health Care Grants

155.8	Appropriations by Fund
	
155.9	General 
	(62,770,000)
	29,192,000
	
155.10	Health Care Access
	99,654,000
	276,500,000
	
155.11 	The amounts that may be spent from the 
155.12 	appropriation for each purpose are as follows:

155.13	(a)MinnesotaCare Grants

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

155.15
155.16	(b)Medical Assistance Basic Health Care - 
Families and Children
		1,165,000
		24,146,000

155.17
155.18	(c)Medical Assistance Basic Health Care - 
Elderly and Disabled
		(63,935,000)
		5,046,000

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

155.22
155.23	(a)Medical Assistance Long-Term Care 
Facilities
		(3,774,000)
		(8,275,000)

155.24
155.25	(b)Medical Assistance Long-Term Care 
Waivers
		(27,710,000)
		(22,452,000)

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

155.27 	Sec. 4. EFFECTIVE DATE.
 155.28 	This article is effective the day following final enactment.