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Office of the Revisor of Statutes

SF 760

1st Unofficial Engrossment - 87th Legislature (2011 - 2012)

Posted on 04/05/2011 03:08 p.m.

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers
1.1A bill for an act 1.2relating to state government; establishing the health and human services 1.3budget; making changes to children and family services, Department of 1.4Health, miscellaneous provisions, health licensing fees, health care, and 1.5continuing care; redesigning service delivery; making changes to chemical 1.6and mental health; modifying fee schedules; modifying program eligibility 1.7requirements; authorizing rulemaking; requiring reports; appropriating money 1.8for the Departments of Health and Human Services and other health-related 1.9boards and councils; making forecast adjustments;amending Minnesota Statutes 1.102010, sections 3.98, by adding a subdivision; 62D.08, subdivision 7; 62E.08, 1.11subdivision 1; 62E.14, by adding a subdivision; 62J.04, subdivisions 3, 9; 1.1262J.17, subdivision 4a; 62J.495, by adding a subdivision; 62J.497, by adding a 1.13subdivision; 62J.692; 62Q.32; 62U.04, subdivisions 3, 9; 62U.06, subdivision 2; 1.14119B.011, subdivision 13; 119B.035, subdivisions 1, 4; 119B.09, subdivision 1.1510, by adding subdivisions; 119B.13, subdivisions 1, 1a, 7; 144.05, by adding 1.16a subdivision; 144.1499; 144.1501, subdivisions 1, 4; 144.98, subdivisions 1.172a, 7, by adding subdivisions; 144A.102; 144A.61, by adding a subdivision; 1.18144E.123; 145.928, subdivision 2; 145.986, by adding subdivisions; 145A.17, 1.19subdivision 3; 148.07, subdivision 1; 148.108, by adding a subdivision; 148.191, 1.20subdivision 2; 148.212, subdivision 1; 148.231; 148B.17; 148B.33, subdivision 1.212; 148B.52; 150A.091, subdivisions 2, 3, 4, 5, 8, by adding a subdivision; 1.22151.07; 151.101; 151.102, by adding a subdivision; 151.12; 151.13, subdivision 1.231; 151.19; 151.25; 151.47, subdivision 1; 151.48; 152.12, subdivision 3; 157.15, 1.24by adding a subdivision; 245.50; 245A.14, subdivision 4; 246B.10; 252.025, 1.25subdivision 7; 252.27, subdivision 2a; 253B.212; 254B.03, subdivisions 1, 1.264; 254B.04, subdivision 1, by adding a subdivision; 254B.06, subdivision 2; 1.27256.01, subdivisions 14b, 24, 29, by adding subdivisions; 256.045, subdivision 1.284a; 256.969, subdivision 2b, by adding a subdivision; 256B.04, subdivision 1.2918; 256B.05, by adding a subdivision; 256B.055, subdivision 15; 256B.056, 1.30subdivisions 3, 4, by adding a subdivision; 256B.057, subdivision 9; 256B.06, 1.31subdivision 4; 256B.0625, subdivisions 8e, 13e, 13h, 17, 17a, 18, 31a, 41, by 1.32adding subdivisions; 256B.0631, subdivisions 1, 2, 3; 256B.0644; 256B.0657; 1.33256B.0659, subdivisions 11, 28; 256B.0751, subdivisions 1, 2, 3, 4, by adding 1.34subdivisions; 256B.0753, by adding a subdivision; 256B.0754, by adding a 1.35subdivision; 256B.0755, subdivision 4, by adding subdivisions; 256B.0756; 1.36256B.0911, subdivisions 1a, 3a, 4a, 6; 256B.0913, subdivision 4; 256B.0915, 1.37subdivisions 3a, 3b, 3e, 3h, 5, 10; 256B.0916, subdivision 6a; 256B.092, 1.38subdivisions 1a, 1b, 1e, 1g, 3, 8; 256B.0945, subdivision 4; 256B.14, by adding 1.39a subdivision; 256B.19, by adding a subdivision; 256B.37, subdivision 5; 2.1256B.431, subdivision 2r, by adding a subdivision; 256B.434, subdivision 2.24; 256B.437, subdivision 6; 256B.441, by adding a subdivision; 256B.48, 2.3subdivision 1; 256B.49, subdivisions 12, 13, 14, 15; 256B.5012, by adding 2.4subdivisions; 256B.69, subdivisions 3a, 4, 5a, 5c, 6, by adding subdivisions; 2.5256B.692, subdivisions 2, 5, 7, by adding a subdivision; 256B.694; 256B.76, 2.6subdivision 4; 256D.03, subdivision 3; 256D.031, subdivisions 6, 7, 10; 2.7256D.05, subdivision 1; 256D.06, subdivisions 1, 1b, 2; 256D.09, subdivision 2.86; 256D.44, subdivision 5; 256D.46, subdivision 1; 256D.49, subdivision 3; 2.9256G.02, subdivision 6; 256I.03, by adding a subdivision; 256I.04, subdivision 2.102b; 256I.05, subdivisions 1a, 1e, by adding a subdivision; 256J.20, subdivision 2.113; 256J.38, subdivision 1; 256J.53, subdivision 2; 256L.01, subdivision 4a; 2.12256L.02, subdivision 3; 256L.03, subdivisions 3, 5; 256L.04, subdivisions 1, 7; 2.13256L.05, subdivisions 2, 3a, 5, by adding a subdivision; 256L.07, subdivision 2.141; 256L.09, subdivision 4; 256L.11, subdivision 7; 256L.12, subdivision 2.159; 256L.15, subdivision 1a; 260C.157, subdivision 3; 260D.01; 297F.10, 2.16subdivision 1; 326B.175; 393.07, subdivisions 10, 10a; 402A.10, subdivisions 2.174, 5; 402A.15; 402A.18; 402A.20; 518A.51; Laws 2008, chapter 363, article 2.1818, section 3, subdivision 5; Laws 2009, chapter 79, article 8, sections 4, as 2.19amended; 51, as amended; article 13, section 3, subdivision 8, as amended; Laws 2.202010, First Special Session chapter 1, article 15, section 3, subdivision 6; article 2.2125, section 3, subdivision 6; proposing coding for new law in Minnesota Statutes, 2.22chapters 62E; 62J; 62U; 137; 144; 145; 148; 151; 256; 256B; 256L; 326B; 2.23402A; repealing Minnesota Statutes 2010, sections 62J.07, subdivisions 1, 2, 3; 2.2462J.17, subdivisions 1, 3, 5a, 6a, 8; 62J.321, subdivision 5a; 62J.381; 62J.41, 2.25subdivisions 1, 2; 144.1464; 145A.14, subdivisions 1, 2; 256.01, subdivision 2b; 2.26256.979, subdivisions 5, 6, 7, 10; 256.9791; 256.9862, subdivision 2; 256B.055, 2.27subdivision 15; 256B.057, subdivision 2c; 256D.46, subdivisions 2, 3; 256L.07, 2.28subdivision 7; 402A.30; 402A.45; Laws 2008, chapter 358, article 3, sections 8; 2.299; Laws 2009, chapter 79, article 3, section 18, as amended; article 5, sections 2.3055, as amended; 56; 57; 60; 61; 62; 63; 64; 65; 66; 68; 69; 79; Minnesota Rules, 2.31parts 3400.0130, subpart 8; 4651.0100, subparts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 2.3212, 14, 15, 16, 16a, 18, 19, 20, 20a, 21, 22, 23; 4651.0110, subparts 2, 2a, 2.333, 4, 5; 4651.0120; 4651.0130; 4651.0140; 4651.0150; 9500.1243, subpart 3; 2.349500.1261, subparts 3, items D, E, 4, 5. 2.35BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.36ARTICLE 1 2.37CHILDREN AND FAMILY SERVICES 2.38    Section 1. Minnesota Statutes 2010, section 119B.011, subdivision 13, is amended to 2.39read: 2.40    Subd. 13. Family. "Family" means parents, stepparents, guardians and their spouses, 2.41or other eligible relative caregivers and their spouses, and their blood related dependent 2.42children and adoptive siblings under the age of 18 years living in the same home including 2.43children temporarily absent from the household in settings such as schools, foster care, and 2.44residential treatment facilities or parents, stepparents, guardians and their spouses, or other 2.45relative caregivers and their spouses temporarily absent from the household in settings 2.46such as schools, military service, or rehabilitation programs.new text begin An adult family member who new text end 2.47new text begin is not in an authorized activity under this chapter may be temporarily absent for up to 60 new text end 3.1new text begin days.new text end When a minor parent or parents and his, her, or their child or children are living with 3.2other relatives, and the minor parent or parents apply for a child care subsidy, "family" 3.3means only the minor parent or parents and their child or children. An adult age 18 or 3.4older who meets this definition of family and is a full-time high school or postsecondary 3.5student may be considered a dependent member of the family unit if 50 percent or more of 3.6the adult's support is provided by the parents, stepparents, guardians, and their spouses or 3.7eligible relative caregivers and their spouses residing in the same household. 3.8new text begin EFFECTIVE DATE.new text end new text begin This section is effective April 16, 2012.new text end 3.9    Sec. 2. Minnesota Statutes 2010, section 119B.035, subdivision 1, is amended to read: 3.10    Subdivision 1. Establishment. A family in which a parent provides care for the 3.11family's infant child may receive a subsidy in lieu of assistance if the family is eligible for 3.12or is receiving assistance under the basic sliding fee program. An eligible family must 3.13meet the eligibility factors under section 119B.09, except as provided in subdivision 4, 3.14and the requirements of this section. Subject to federal match and maintenance of effort 3.15requirements for the child care and development fund, and up to available appropriations, 3.16the commissioner shall provide assistance under the at-home infant child care program and 3.17for administrative costs associated with the program. new text begin The commissioner shall set aside new text end 3.18new text begin two percent of the basic sliding fee child care appropriation under section 119B.03, for new text end 3.19new text begin purposes of this section. new text end At the end of a fiscal year, the commissioner may carry forward 3.20any unspent funds under this section to the next fiscal year within the same biennium for 3.21assistance under the basic sliding fee program. 3.22    Sec. 3. Minnesota Statutes 2010, section 119B.035, subdivision 4, is amended to read: 3.23    Subd. 4. Assistance. (a) A family is limited to a lifetime total of 12 months of 3.24assistance under subdivision 2. The maximum rate of assistance is equal to 90new text begin 64new text end percent 3.25of the rate established under section 119B.13 for care of infants in licensed family child 3.26care in the applicant's county of residence. 3.27(b) A participating family must report income and other family changes as specified 3.28in the county's plan under section 119B.08, subdivision 3. 3.29(c) Persons who are admitted to the at-home infant child care program retain their 3.30position in any basic sliding fee program. Persons leaving the at-home infant child care 3.31program reenter the basic sliding fee program at the position they would have occupied. 3.32(d) Assistance under this section does not establish an employer-employee 3.33relationship between any member of the assisted family and the county or state. 4.1    Sec. 4. Minnesota Statutes 2010, section 119B.09, is amended by adding a subdivision 4.2to read: 4.3    new text begin Subd. 9a.new text end new text begin Child care centers; assistance.new text end new text begin (a) For the purposes of this subdivision, new text end 4.4new text begin "qualifying child" means a child who satisfies both of the following:new text end 4.5new text begin (1) is not a child or dependent of an employee of the child care provider; andnew text end 4.6new text begin (2) does not reside with an employee of the child care provider.new text end 4.7new text begin (b) Funds distributed under this chapter must not be paid for child care services new text end 4.8new text begin that are provided for a child by a child care provider who employs either the parent of new text end 4.9new text begin the child or a person who resides with the child, unless at all times at least 50 percent of new text end 4.10new text begin the children for whom the child care provider is providing care are qualifying children new text end 4.11new text begin under paragraph (a).new text end 4.12new text begin (c) If a child care provider satisfies the requirements for payment under paragraph new text end 4.13new text begin (b), but the percentage of qualifying children under paragraph (a) for whom the provider new text end 4.14new text begin is providing care falls below 50 percent, the provider shall have four weeks to raise the new text end 4.15new text begin percentage of qualifying children for whom the provider is providing care to at least 50 new text end 4.16new text begin percent before payments to the provider are discontinued for child care services provided new text end 4.17new text begin for a child who is not a qualifying child.new text end 4.18new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2013.new text end 4.19    Sec. 5. Minnesota Statutes 2010, section 119B.09, subdivision 10, is amended to read: 4.20    Subd. 10. Payment of funds. All federal, state, and local child care funds must 4.21be paid directly to the parent when a provider cares for children in the children's own 4.22home. In all other cases, all federal, state, and local child care funds must be paid directly 4.23to the child care provider, either licensed or legal nonlicensed, on behalf of the eligible 4.24family.new text begin Funds distributed under this chapter must not be used for child care services that new text end 4.25new text begin are provided for a child by a child care provider who resides in the same household or new text end 4.26new text begin occupies the same residence as the child.new text end 4.27new text begin EFFECTIVE DATE.new text end new text begin This section is effective March 5, 2012.new text end 4.28    Sec. 6. Minnesota Statutes 2010, section 119B.09, is amended by adding a subdivision 4.29to read: 4.30    new text begin Subd. 13.new text end new text begin Child care in the child's home.new text end new text begin Child care assistance must only be new text end 4.31new text begin authorized in the child's home if the child's parents have authorized activities outside of new text end 4.32new text begin the home and if one or more of the following circumstances are met:new text end 5.1new text begin (1) the parents' qualifying activity occurs during times when out-of-home care is new text end 5.2new text begin not available. If child care is needed during any period when out-of-home care is not new text end 5.3new text begin available, in-home care can be approved for the entire time care is needed;new text end 5.4new text begin (2) the family lives in an area where out-of-home care is not available; ornew text end 5.5new text begin (3) a child has a verified illness or disability that would place the child or other new text end 5.6new text begin children in an out-of-home facility at risk or creates a hardship for the child and the family new text end 5.7new text begin to take the child out of the home to a child care home or center.new text end 5.8new text begin EFFECTIVE DATE.new text end new text begin This section is effective March 5, 2012.new text end 5.9    Sec. 7. Minnesota Statutes 2010, section 119B.13, subdivision 1, is amended to read: 5.10    Subdivision 1. Subsidy restrictions. (a) Beginning July 1, 2006, the maximum rate 5.11paid for child care assistance in any county or multicounty region under the child care 5.12fund shall be the rate for like-care arrangements in the county effective January 1, 2006, 5.13increased by six percent. 5.14    (b) Rate changes shall be implemented for services provided in September 2006 5.15unless a participant eligibility redetermination or a new provider agreement is completed 5.16between July 1, 2006, and August 31, 2006. 5.17    As necessary, appropriate notice of adverse action must be made according to 5.18Minnesota Rules, part 3400.0185, subparts 3 and 4. 5.19    New cases approved on or after July 1, 2006, shall have the maximum rates under 5.20paragraph (a), implemented immediately. 5.21    (c) Every year, the commissioner shall survey rates charged by child care providers in 5.22Minnesota to determine the 75th percentile for like-care arrangements in counties. When 5.23the commissioner determines that, using the commissioner's established protocol, the 5.24number of providers responding to the survey is too small to determine the 75th percentile 5.25rate for like-care arrangements in a county or multicounty region, the commissioner may 5.26establish the 75th percentile maximum rate based on like-care arrangements in a county, 5.27region, or category that the commissioner deems to be similar. 5.28    (d) A rate which includes a special needs rate paid under subdivision 3 or under a 5.29school readiness service agreement paid under section 119B.231, may be in excess of the 5.30maximum rate allowed under this subdivision. 5.31    (e) The department shall monitor the effect of this paragraph on provider rates. The 5.32county shall pay the provider's full charges for every child in care up to the maximum 5.33established. The commissioner shall determine the maximum rate for each type of care 5.34on an hourly, full-day, and weekly basis, including special needs and disability care.new text begin The new text end 6.1new text begin maximum payment to a provider for one day of care must not exceed the daily rate. The new text end 6.2new text begin maximum payment to a provider for one week of care must not exceed the weekly rate.new text end 6.3new text begin (f) Child care providers receiving reimbursement under this chapter must not be paid new text end 6.4new text begin activity fees or an additional amount above the maximum rates for care provided during new text end 6.5new text begin nonstandard hours for families receiving assistance.new text end 6.6    (f)new text begin (g)new text end When the provider charge is greater than the maximum provider rate allowed, 6.7the parent is responsible for payment of the difference in the rates in addition to any 6.8family co-payment fee. 6.9    (g)new text begin (h)new text end All maximum provider rates changes shall be implemented on the Monday 6.10following the effective date of the maximum provider rate. 6.11new text begin EFFECTIVE DATE.new text end new text begin This section is effective September 3, 2012, except the new text end 6.12new text begin amendments to paragraph (e) are effective April 16, 2012.new text end 6.13    Sec. 8. Minnesota Statutes 2010, section 119B.13, subdivision 1a, is amended to read: 6.14    Subd. 1a. Legal nonlicensed family child care provider rates. (a) Legal 6.15nonlicensed family child care providers receiving reimbursement under this chapter must 6.16be paid on an hourly basis for care provided to families receiving assistance. 6.17(b) The maximum rate paid to legal nonlicensed family child care providers must be 6.1880new text begin 64new text end percent of the county maximum hourly rate for licensed family child care providers. 6.19In counties where the maximum hourly rate for licensed family child care providers is 6.20higher than the maximum weekly rate for those providers divided by 50, the maximum 6.21hourly rate that may be paid to legal nonlicensed family child care providers is the rate 6.22equal to the maximum weekly rate for licensed family child care providers divided by 50 6.23and then multiplied by 0.80new text begin 0.64. The maximum payment to a provider for one day of care new text end 6.24new text begin must not exceed the maximum hourly rate times ten. The maximum payment to a provider new text end 6.25new text begin for one week of care must not exceed the maximum hourly rate times 50new text end . 6.26(c) A rate which includes a special needs rate paid under subdivision 3 may be in 6.27excess of the maximum rate allowed under this subdivision. 6.28(d) Legal nonlicensed family child care providers receiving reimbursement under 6.29this chapter may not be paid registration fees for families receiving assistance. 6.30new text begin EFFECTIVE DATE.new text end new text begin This section is effective April 16, 2012, except the new text end 6.31new text begin amendment changing 80 to 64 and 0.80 to 0.64 is effective July 1, 2011.new text end 6.32    Sec. 9. Minnesota Statutes 2010, section 119B.13, subdivision 7, is amended to read: 7.1    Subd. 7. Absent days. (a) new text begin Licensed new text end child care providers maynew text begin and license-exempt new text end 7.2new text begin centers mustnew text end not be reimbursed for more than 25new text begin tennew text end full-day absent days per child, 7.3excluding holidays, in a fiscal year, or for more than ten consecutive full-day absent days, 7.4unless the child has a documented medical condition that causes more frequent absences. 7.5Absences due to a documented medical condition of a parent or sibling who lives in the 7.6same residence as the child receiving child care assistance do not count against the 25-day 7.7absent day limit in a fiscal year. Documentation of medical conditions must be on the 7.8forms and submitted according to the timelines established by the commissioner. A public 7.9health nurse or school nurse may verify the illness in lieu of a medical practitioner. If a 7.10provider sends a child home early due to a medical reason, including, but not limited to, 7.11fever or contagious illness, the child care center director or lead teacher may verify the 7.12illness in lieu of a medical practitioner.new text begin Legal nonlicensed family child care providers new text end 7.13new text begin must not be reimbursed for absent days.new text end If a child attends for part of the time authorized to 7.14be in care in a day, but is absent for part of the time authorized to be in care in that same 7.15day, the absent time willnew text begin mustnew text end be reimbursed but the time willnew text begin mustnew text end not count toward the 7.16ten consecutive or 25 cumulative absent day limitsnew text begin limitnew text end . Children in families where at 7.17least one parent is under the age of 21, does not have a high school or general equivalency 7.18diploma, and is a student in a school district or another similar program that provides or 7.19arranges for child care, as well as parenting, social services, career and employment 7.20supports, and academic support to achieve high school graduation, may be exempt from 7.21the absent day limits upon request of the program and approval of the county. If a child 7.22attends part of an authorized day, payment to the provider must be for the full amount 7.23of care authorized for that day. Child care providers maynew text begin mustnew text end only be reimbursed for 7.24absent days if the provider has a written policy for child absences and charges all other 7.25families in care for similar absences. 7.26    (b) Child care providers must be reimbursed for up to ten federal or state holidays 7.27or designated holidays per year when the provider charges all families for these days 7.28and the holiday or designated holiday falls on a day when the child is authorized to be 7.29in attendance. Parents may substitute other cultural or religious holidays for the ten 7.30recognized state and federal holidays. Holidays do not count toward the ten consecutive 7.31or 25 cumulative absent day limitsnew text begin limitnew text end . 7.32    (c) A family or child care provider maynew text begin mustnew text end not be assessed an overpayment for an 7.33absent day payment unless (1) there was an error in the amount of care authorized for the 7.34family, (2) all of the allowed full-day absent payments for the child have been paid, or (3) 7.35the family or provider did not timely report a change as required under law. 8.1    (d) The provider and family must receive notification of the number of absent days 8.2used upon initial provider authorization for a family and when the family has used 15 8.3cumulative absent days. Upon statewide implementation of the Minnesota Electronic 8.4Child Care System, the provider and family shall receive notification of the number of 8.5absent days used upon initial provider authorization for a family and ongoing notification 8.6of the number of absent days used as of the date of the notification. 8.7    (e) A county may pay for more absent days than the statewide absent day policy 8.8established under this subdivision if current market practice in the county justifies payment 8.9for those additional days. County policies for payment of absent days in excess of the 8.10statewide absent day policy and justification for these county policies must be included in 8.11the county's child care fund plan under section , subdivision 3. 8.12new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2013.new text end 8.13    Sec. 10. new text begin [256.987] ELECTRONIC BENEFIT TRANSFER CARD.new text end 8.14    new text begin Subdivision 1.new text end new text begin Electronic benefit transfer (EBT) card.new text end new text begin Beginning July 1, 2011, new text end 8.15new text begin cash benefits for the general assistance and Minnesota supplemental aid programs under new text end 8.16new text begin chapter 256D and programs under chapter 256J must be issued on a separate EBT card new text end 8.17new text begin with the name of the head of household printed on the card. This card must be issued new text end 8.18new text begin within 30 calendar days of an eligibility determination. During the initial 30 calendar days new text end 8.19new text begin of eligibility, a recipient may have cash benefits issued on an EBT card without a name new text end 8.20new text begin printed on the card. This card may be the same card on which food support benefits are new text end 8.21new text begin issued and does not need to meet the requirements of this section.new text end 8.22    new text begin Subd. 2.new text end new text begin EBT card use restricted to Minnesota vendors.new text end new text begin EBT cardholders new text end 8.23new text begin receiving cash benefits under the general assistance and Minnesota supplemental aid new text end 8.24new text begin programs under chapter 256D or programs under chapter 256J are prohibited from using new text end 8.25new text begin their EBT cards at vendors located outside of Minnesota. This subdivision does not apply new text end 8.26new text begin to food support benefits.new text end 8.27    Sec. 11. Minnesota Statutes 2010, section 256D.05, subdivision 1, is amended to read: 8.28    Subdivision 1. Eligibility. (a) Each assistance unit with income and resources 8.29less than the standard of assistance established by the commissioner and with a member 8.30who is a resident of the state shall be eligible for and entitled to general assistance if 8.31the assistance unit is: 8.32(1) a person who is suffering from a professionally certified permanent or temporary 8.33illness, injury, or incapacity which is expected to continue for more than 30new text begin 90new text end days and 8.34which prevents the person from obtaining or retaining employment; 9.1(2) a person whose presence in the home on a substantially continuous basis is 9.2required because of the professionally certified illness, injury, incapacity, or the age of 9.3another member of the household; 9.4(3)new text begin (2)new text end a person who has been placed in, and is residing in, a licensed or certified 9.5facility for purposes of physical or mental health or rehabilitation, or in an approved 9.6chemical dependency domiciliary facility, if the placement is based on illness or incapacity 9.7and is according to a plan developed or approved by the county agency through its 9.8director or designated representative; 9.9(4)new text begin (3)new text end a person who resides in a shelter facility described in subdivision 3; 9.10(5)new text begin (4)new text end a person not described in clause (1) or (3)new text begin (2)new text end who is diagnosed by a licensed 9.11physician, psychological practitioner, or other qualified professional, as developmentally 9.12disabled or mentally ill, and that condition prevents the person from obtaining or retaining 9.13employment; 9.14(6) a person who has an application pending for, or is appealing termination of 9.15benefits from, the Social Security disability program or the program of supplemental 9.16security income for the aged, blind, and disabled, provided the person has a professionally 9.17certified permanent or temporary illness, injury, or incapacity which is expected to 9.18continue for more than 30 days and which prevents the person from obtaining or retaining 9.19employment; 9.20(7) a person who is unable to obtain or retain employment because advanced age 9.21significantly affects the person's ability to seek or engage in substantial work; 9.22(8)new text begin (5)new text end a person who has been assessed by a vocational specialist and, in consultation 9.23with the county agency, has been determined to be unemployable for purposes of this 9.24clause; a person is considered employable if there exist positions of employment in the 9.25local labor market, regardless of the current availability of openings for those positions, 9.26that the person is capable of performing. The person's eligibility under this category must 9.27be reassessed at least annually. The county agency must provide notice to the person not 9.28later than 30 days before annual eligibility under this item ends, informing the person of the 9.29date annual eligibility will end and the need for vocational assessment if the person wishes 9.30to continue eligibility under this clause. For purposes of establishing eligibility under this 9.31clause, it is the applicant's or recipient's duty to obtain any needed vocational assessment; 9.32(9)new text begin (6)new text end a person who is determined by the county agency, according to permanent 9.33rules adopted by the commissioner, to be learning disablednew text begin have a condition that qualifies new text end 9.34new text begin under Minnesota's special education rules as a specific learning disabilitynew text end , provided that if 9.35a rehabilitation plan for the person is developed or approved by the county agency, new text begin andnew text end 9.36the person is following the plan; 10.1(10) a child under the age of 18 who is not living with a parent, stepparent, or legal 10.2custodian, and only if: the child is legally emancipated or living with an adult with the 10.3consent of an agency acting as a legal custodian; the child is at least 16 years of age 10.4and the general assistance grant is approved by the director of the county agency or a 10.5designated representative as a component of a social services case plan for the child; or the 10.6child is living with an adult with the consent of the child's legal custodian and the county 10.7agency. For purposes of this clause, "legally emancipated" means a person under the age 10.8of 18 years who: (i) has been married; (ii) is on active duty in the uniformed services of 10.9the United States; (iii) has been emancipated by a court of competent jurisdiction; or (iv) 10.10is otherwise considered emancipated under Minnesota law, and for whom county social 10.11services has not determined that a social services case plan is necessary, for reasons other 10.12than the child has failed or refuses to cooperate with the county agency in developing 10.13the plan; 10.14(11)new text begin (7)new text end a person who is eligible for displaced homemaker services, programs, or 10.15assistance under section 116L.96, but only if that person is enrolled as a full-time student; 10.16(12) a person who lives more than four hours round-trip traveling time from any 10.17potential suitable employment; 10.18(13)new text begin (8)new text end a person who is involved with protective or court-ordered services that 10.19prevent the applicant or recipient from working at least four hours per day;new text begin ornew text end 10.20(14) a person over age 18 whose primary language is not English and who is 10.21attending high school at least half time; or 10.22(15)new text begin (9)new text end a person whose alcohol and drug addiction is a material factor that 10.23contributes to the person's disability; applicants who assert this clause as a basis for 10.24eligibility must be assessed by the county agency to determine if they are amenable 10.25to treatment; if the applicant is determined to be not amenable to treatment, but is 10.26otherwise eligible for benefits, then general assistance must be paid in vendor form, for 10.27the individual's shelter costs up to the limit of the grant amount, with the residual, if 10.28any, paid according to section 256D.09, subdivision 2a; if the applicant is determined 10.29to be amenable to treatment, then in order to receive benefits, the applicant must be in 10.30a treatment program or on a waiting list and the benefits must be paid in vendor form, 10.31for the individual's shelter costs, up to the limit of the grant amount, with the residual, if 10.32any, paid according to section 256D.09, subdivision 2a. 10.33(b) As a condition of eligibility under paragraph (a), clauses (1), (3)new text begin (2)new text end , (5)new text begin (4)new text end , 10.34(8)new text begin (5)new text end , and (9)new text begin (6)new text end , the recipient must complete an interim assistance agreement and 10.35must apply for other maintenance benefits as specified in section 256D.06, subdivision 11.15 , and must comply with efforts to determine the recipient's eligibility for those other 11.2maintenance benefits. 11.3new text begin (c) As a condition of eligibility under this section, the recipient must complete new text end 11.4new text begin at least 20 hours per month of volunteer or paid work. The county of residence shall new text end 11.5new text begin determine what may be included as volunteer work. Recipients must provide monthly new text end 11.6new text begin proof of volunteer work on the forms established by the county. A person who is unable new text end 11.7new text begin to obtain or retain 20 hours per month of volunteer or paid work due to a professionally new text end 11.8new text begin certified illness, injury, disability, or incapacity must not be made ineligible for general new text end 11.9new text begin assistance under this section.new text end 11.10(c)new text begin (d)new text end The burden of providing documentation for a county agency to use to verify 11.11eligibility for general assistance or for exemption from the food stamp employment 11.12and training program is upon the applicant or recipient. The county agency shall use 11.13documents already in its possession to verify eligibility, and shall help the applicant or 11.14recipient obtain other existing verification necessary to determine eligibility which the 11.15applicant or recipient does not have and is unable to obtain. 11.16    Sec. 12. Minnesota Statutes 2010, section 256D.06, subdivision 1, is amended to read: 11.17    Subdivision 1. Eligibility; amount of assistance. General assistance shall be 11.18granted in an amount that when added to the nonexempt income actually available to the 11.19assistance unit, the total amount equals the applicable standard of assistance for general 11.20assistance. In determining eligibility for and the amount of assistance for an individual or 11.21married couple, the county agency shall disregard the first $50new text begin $150new text end of earned income 11.22per month. 11.23    Sec. 13. Minnesota Statutes 2010, section 256D.06, subdivision 1b, is amended to read: 11.24    Subd. 1b. Earned income savings account. In addition to the $50new text begin $150new text end disregard 11.25required under subdivision 1, the county agency shall disregard an additional earned 11.26income up to a maximum of $150new text begin $500new text end per month for: (1) persons residing in facilities 11.27licensed under Minnesota Rules, parts 9520.0500 to 9520.0690 and 9530.2500 to 11.289530.4000, and for whom discharge and work are part of a treatment plan; new text begin andnew text end (2) 11.29persons living in supervised apartments with services funded under Minnesota Rules, 11.30parts 9535.0100 to 9535.1600, and for whom discharge and work are part of a treatment 11.31plan; and (3) persons residing in group residential housing, as that term is defined in 11.32section 256I.03, subdivision 3, for whom the county agency has approved a discharge plan 11.33which includes work. The additional amount disregarded must be placed in a separate 11.34savings account by the eligible individual, to be used upon discharge from the residential 12.1facility into the community. For individuals residing in a chemical dependency program 12.2licensed under Minnesota Rules, part 9530.4100, subpart 22, item D, withdrawals from 12.3the savings account require the signature of the individual and for those individuals with 12.4an authorized representative payee, the signature of the payee. A maximum of $1,000new text begin new text end 12.5new text begin $2,000new text end , including interest, of the money in the savings account must be excluded from 12.6the resource limits established by section 256D.08, subdivision 1, clause (1). Amounts in 12.7that account in excess of $1,000new text begin $2,000new text end must be applied to the resident's cost of care. If 12.8excluded money is removed from the savings account by the eligible individual at any 12.9time before the individual is discharged from the facility into the community, the money is 12.10income to the individual in the month of receipt and a resource in subsequent months. If 12.11an eligible individual moves from a community facility to an inpatient hospital setting, 12.12the separate savings account is an excluded asset for up to 18 months. During that time, 12.13amounts that accumulate in excess of the $1,000new text begin $2,000new text end savings limit must be applied to 12.14the patient's cost of care. If the patient continues to be hospitalized at the conclusion of the 12.1518-month period, the entire account must be applied to the patient's cost of care. 12.16    Sec. 14. Minnesota Statutes 2010, section 256D.06, subdivision 2, is amended to read: 12.17    Subd. 2. Emergency need. new text begin (a) new text end Notwithstanding the provisions of subdivision 1, a 12.18grant of emergency general assistance shall, to the extent funds are available, be made to 12.19an eligible single adult, married couple, or family for an emergency need, as defined in 12.20rules promulgated by the commissioner, where the recipient requests temporary assistance 12.21not exceeding 30 days if an emergency situation appears to exist and the individual or 12.22family is ineligible for MFIP or DWP or is not a participant of MFIP or DWPnew text begin under new text end 12.23new text begin written criteria adopted by the county agencynew text end . If an applicant or recipient relates facts 12.24to the county agency which may be sufficient to constitute an emergency situation, the 12.25county agency shall, to the extent funds are available, advise the person of the procedure 12.26for applying for assistance according to this subdivision. 12.27    new text begin (b) The applicant must be ineligible for assistance under chapter 256J, must have new text end 12.28new text begin annual net income no greater than 200 percent of the federal poverty guidelines for the new text end 12.29new text begin previous calendar year, and may receive new text end an emergency general assistance grant is available 12.30to a recipient not more than once in any 12-month period. 12.31    new text begin (c) new text end Funding for an emergency general assistance program is limited to the 12.32appropriation. Each fiscal year, the commissioner shall allocate to counties the money 12.33appropriated for emergency general assistance grants based on each county agency's 12.34average share of state's emergency general expenditures for the immediate past three fiscal 13.1years as determined by the commissioner, and may reallocate any unspent amounts to 13.2other counties. new text begin No county shall be allocated less than $1,000 for a fiscal year.new text end 13.3    new text begin (d) new text end Any emergency general assistance expenditures by a county above the amount of 13.4the commissioner's allocation to the county must be made from county funds. 13.5    Sec. 15. Minnesota Statutes 2010, section 256D.44, subdivision 5, is amended to read: 13.6    Subd. 5. Special needs. In addition to the state standards of assistance established in 13.7subdivisions 1 to 4, payments are allowed for the following special needs of recipients of 13.8Minnesota supplemental aid who are not residents of a nursing home, a regional treatment 13.9center, or a group residential housing facility. 13.10    (a) The county agency shall pay a monthly allowance for medically prescribed 13.11diets if the cost of those additional dietary needs cannot be met through some other 13.12maintenance benefit. The need for special diets or dietary items must be prescribed by 13.13a licensed physician. Costs for special diets shall be determined as percentages of the 13.14allotment for a one-person household under the thrifty food plan as defined by the United 13.15States Department of Agriculture. The types of diets and the percentages of the thrifty 13.16food plan that are covered are as follows: 13.17    (1) high protein diet, at least 80 grams daily, 25 percent of thrifty food plan; 13.18    (2) controlled protein diet, 40 to 60 grams and requires special products, 100 percent 13.19of thrifty food plan; 13.20    (3) controlled protein diet, less than 40 grams and requires special products, 125 13.21percent of thrifty food plan; 13.22    (4) low cholesterol diet, 25 percent of thrifty food plan; 13.23    (5) high residue diet, 20 percent of thrifty food plan; 13.24    (6) pregnancy and lactation diet, 35 percent of thrifty food plan; 13.25    (7) gluten-free diet, 25 percent of thrifty food plan; 13.26    (8) lactose-free diet, 25 percent of thrifty food plan; 13.27    (9) antidumping diet, 15 percent of thrifty food plan; 13.28    (10) hypoglycemic diet, 15 percent of thrifty food plan; or 13.29    (11) ketogenic diet, 25 percent of thrifty food plan. 13.30    (b) Payment for nonrecurring special needs must be allowed for necessary home 13.31repairs or necessary repairs or replacement of household furniture and appliances using 13.32the payment standard of the AFDC program in effect on July 16, 1996, for these expenses, 13.33as long as other funding sources are not available. 13.34    (c) A fee for guardian or conservator service is allowed at a reasonable rate 13.35negotiated by the county or approved by the court. This rate shall not exceed five percent 14.1of the assistance unit's gross monthly income up to a maximum of $100 per month. If the 14.2guardian or conservator is a member of the county agency staff, no fee is allowed. 14.3    (d) The county agency shall continue to pay a monthly allowance of $68 for 14.4restaurant meals for a person who was receiving a restaurant meal allowance on June 1, 14.51990, and who eats two or more meals in a restaurant daily. The allowance must continue 14.6until the person has not received Minnesota supplemental aid for one full calendar month 14.7or until the person's living arrangement changes and the person no longer meets the criteria 14.8for the restaurant meal allowance, whichever occurs first. 14.9    (e) A fee of ten percent of the recipient's gross income or $25, whichever is less, 14.10is allowed for representative payee services provided by an agency that meets the 14.11requirements under SSI regulations to charge a fee for representative payee services. This 14.12special need is available to all recipients of Minnesota supplemental aid regardless of 14.13their living arrangement. 14.14    (f)(1) Notwithstanding the language in this subdivision, an amount equal to the 14.15maximum allotment authorized by the federal Food Stamp Program for a single individual 14.16which is in effect on the first day of July of each year will be added to the standards of 14.17assistance established in subdivisions 1 to 4 for adults under the age of 65 who qualify 14.18as shelter needy and are: (i) relocating from an institution, or an adult mental health 14.19residential treatment program under section 256B.0622; (ii) eligible for the self-directed 14.20supports option as defined under section 256B.0657, subdivision 2; or (iii) home and 14.21community-based waiver recipients living in their own home or rented or leased apartment 14.22which is not owned, operated, or controlled by a provider of service not related by blood 14.23or marriage, unless allowed under paragraph (g). 14.24    (2) Notwithstanding subdivision 3, paragraph (c), an individual eligible for the 14.25shelter needy benefit under this paragraph is considered a household of one. An eligible 14.26individual who receives this benefit prior to age 65 may continue to receive the benefit 14.27after the age of 65. 14.28    (3) "Shelter needy" means that the assistance unit incurs monthly shelter costs that 14.29exceed 40 percent of the assistance unit's gross income before the application of this 14.30special needs standard. "Gross income" for the purposes of this section is the applicant's or 14.31recipient's income as defined in section 256D.35, subdivision 10, or the standard specified 14.32in subdivision 3, paragraph (a) or (b), whichever is greater. A recipient of a federal or 14.33state housing subsidy, that limits shelter costs to a percentage of gross income, shall not be 14.34considered shelter needy for purposes of this paragraph. 14.35(g) Notwithstanding this subdivision, to access housing and services as provided 14.36in paragraph (f), the recipient may choose housing that may be owned, operated, or 15.1controlled by the recipient's service provider. In a multifamily building of new text begin more than new text end four 15.2or more units, the maximum number of apartmentsnew text begin at one addressnew text end that may be used by 15.3recipients of this program shall be 50 percent of the units in a building. This paragraph 15.4expires on June 30, 2012new text begin 2014new text end . 15.5    Sec. 16. Minnesota Statutes 2010, section 256D.46, subdivision 1, is amended to read: 15.6    Subdivision 1. Eligibility. A county agency must grant emergency Minnesota 15.7supplemental aid, to the extent funds are available, if the recipient is without adequate 15.8resources to resolve an emergency that, if unresolved, will threaten the health or safety of 15.9the recipient. For the purposes of this section, the term "recipient" includes persons for 15.10whom a group residential housing benefit is being paid under sections to .new text begin new text end 15.11new text begin Applicants for or recipients of SSI or Minnesota supplemental aid who have emergency new text end 15.12new text begin need may apply for emergency general assistance under section 256D.06, subdivision 2.new text end 15.13    Sec. 17. Minnesota Statutes 2010, section 256I.03, is amended by adding a subdivision 15.14to read: 15.15    new text begin Subd. 8.new text end new text begin Supplementary services.new text end new text begin "Supplementary services" means services new text end 15.16new text begin provided to residents of group residential housing providers in addition to room and new text end 15.17new text begin board including, but not limited to, oversight and up to 24-hour supervision, medication new text end 15.18new text begin reminders, assistance with transportation, arranging for meetings and appointments, and new text end 15.19new text begin arranging for medical and social services.new text end 15.20    Sec. 18. Minnesota Statutes 2010, section 256I.04, subdivision 2b, is amended to read: 15.21    Subd. 2b. Group residential housing agreements. new text begin (a) new text end Agreements between county 15.22agencies and providers of group residential housing must be in writing and must specify 15.23the name and address under which the establishment subject to the agreement does 15.24business and under which the establishment, or service provider, if different from the 15.25group residential housing establishment, is licensed by the Department of Health or the 15.26Department of Human Services; the specific license or registration from the Department 15.27of Health or the Department of Human Services held by the provider and the number 15.28of beds subject to that license; the address of the location or locations at which group 15.29residential housing is provided under this agreement; the per diem and monthly rates that 15.30are to be paid from group residential housing funds for each eligible resident at each 15.31location; the number of beds at each location which are subject to the group residential 15.32housing agreement; whether the license holder is a not-for-profit corporation under section 15.33501(c)(3) of the Internal Revenue Code; and a statement that the agreement is subject to 16.1the provisions of sections 256I.01 to 256I.06 and subject to any changes to those sections. 16.2Group residential housing agreements may be terminated with or without cause by either 16.3the county or the provider with two calendar months prior notice. 16.4new text begin (b) Beginning July 1, 2011, counties must not enter into agreements with providers new text end 16.5new text begin of group residential housing that are licensed as board and lodging with special services new text end 16.6new text begin and that do not include a residency requirement of at least 20 hours per month of volunteer new text end 16.7new text begin or paid work. A person who is unable to obtain or retain 20 hours per month of volunteer new text end 16.8new text begin or paid work due to a professionally certified illness, injury, disability, or incapacity must new text end 16.9new text begin not be made ineligible for group residential housing under this section.new text end 16.10    Sec. 19. Minnesota Statutes 2010, section 256I.05, subdivision 1a, is amended to read: 16.11    Subd. 1a. Supplementary service rates. (a) Subject to the provisions of section 16.12256I.04, subdivision 3 , the county agency may negotiate a payment not to exceed $426.37 16.13for other services necessary to provide room and board provided by the group residence 16.14if the residence is licensed by or registered by the Department of Health, or licensed by 16.15the Department of Human Services to provide services in addition to room and board, 16.16and if the provider of services is not also concurrently receiving funding for services for 16.17a recipient under a home and community-based waiver under title XIX of the Social 16.18Security Act; or funding from the medical assistance program under section 256B.0659, 16.19for personal care services for residents in the setting; or residing in a setting which 16.20receives funding under Minnesota Rules, parts 9535.2000 to 9535.3000. If funding is 16.21available for other necessary services through a home and community-based waiver, or 16.22personal care services under section 256B.0659, then the GRH rate is limited to the rate 16.23set in subdivision 1. Unless otherwise provided in law, in no case may the supplementary 16.24service rate exceed $426.37. The registration and licensure requirement does not apply to 16.25establishments which are exempt from state licensure because they are located on Indian 16.26reservations and for which the tribe has prescribed health and safety requirements. Service 16.27payments under this section may be prohibited under rules to prevent the supplanting of 16.28federal funds with state funds. The commissioner shall pursue the feasibility of obtaining 16.29the approval of the Secretary of Health and Human Services to provide home and 16.30community-based waiver services under title XIX of the Social Security Act for residents 16.31who are not eligible for an existing home and community-based waiver due to a primary 16.32diagnosis of mental illness or chemical dependency and shall apply for a waiver if it is 16.33determined to be cost-effective. 16.34(b) The commissioner is authorized to make cost-neutral transfers from the GRH 16.35fund for beds under this section to other funding programs administered by the department 17.1after consultation with the county or counties in which the affected beds are located. 17.2The commissioner may also make cost-neutral transfers from the GRH fund to county 17.3human service agencies for beds permanently removed from the GRH census under a plan 17.4submitted by the county agency and approved by the commissioner. The commissioner 17.5shall report the amount of any transfers under this provision annually to the legislature. 17.6(c) The provisions of paragraph (b) do not apply to a facility that has its 17.7reimbursement rate established under section 256B.431, subdivision 4, paragraph (c). 17.8    new text begin (d) Beginning July 1, 2011, counties must not negotiate supplementary service rates new text end 17.9new text begin with providers of group residential housing that are licensed as board and lodging with new text end 17.10new text begin special services and that do not enforce a policy of sobriety on their premises.new text end 17.11    Sec. 20. Minnesota Statutes 2010, section 256I.05, subdivision 1e, is amended to read: 17.12    Subd. 1e. Supplementary rate for certain facilities. new text begin (a) new text end Notwithstanding the 17.13provisions of subdivisions 1a and 1c, beginning July 1, 2005, a county agency shall 17.14negotiate a supplementary rate in addition to the rate specified in subdivision 1, not to 17.15exceed $700 per month, including any legislatively authorized inflationary adjustments, 17.16for a group residential housing provider that: 17.17(1) is located in Hennepin County and has had a group residential housing contract 17.18with the county since June 1996; 17.19(2) operates in three separate locations a 75-bed facility, a 50-bed facility, and a 17.2026-bed facility; and 17.21(3) serves a chemically dependent clientele, providing 24 hours per day supervision 17.22and limiting a resident's maximum length of stay to 13 months out of a consecutive 17.2324-month period. 17.24new text begin (b) Notwithstanding the provisions of subdivisions 1a and 1c, beginning July 1, new text end 17.25new text begin 2011, a county agency shall negotiate a supplementary rate in addition to the rate specified new text end 17.26new text begin in subdivision 1, not to exceed $700 per month, including any legislatively authorized new text end 17.27new text begin inflationary adjustments, for the group residential provider described under paragraph new text end 17.28new text begin (a), not to exceed an additional 175 beds.new text end 17.29    Sec. 21. Minnesota Statutes 2010, section 256I.05, is amended by adding a subdivision 17.30to read: 17.31    new text begin Subd. 1o.new text end new text begin Supplemental rate adjustment.new text end new text begin Notwithstanding any other provision to new text end 17.32new text begin the contrary, board and lodging with services providers that receive a supplemental service new text end 17.33new text begin rate in excess of the supplemental service rate established under subdivision 1, shall be new text end 17.34new text begin reduced no more than $10.42 per bed per month.new text end 18.1    Sec. 22. Minnesota Statutes 2010, section 256J.20, subdivision 3, is amended to read: 18.2    Subd. 3. Other property limitations. To be eligible for MFIP, the equity value of 18.3all nonexcluded real and personal property of the assistance unit must not exceed $2,000 18.4for applicants and $5,000 for ongoing participants. The value of assets in clauses (1) to 18.5(19) must be excluded when determining the equity value of real and personal property: 18.6    (1) a licensed vehicle up to a loan value of less than or equal to $15,000new text begin $10,000new text end . If 18.7the assistance unit owns more than one licensed vehicle, the county agency shall determine 18.8the loan value of all additional vehicles and exclude the combined loan value of less than 18.9or equal to $7,500. The county agency shall apply any excess loan value as if it were 18.10equity value to the asset limit described in this section, excluding: (i) the value of one 18.11vehicle per physically disabled person when the vehicle is needed to transport the disabled 18.12unit member; this exclusion does not apply to mentally disabled people; (ii) the value of 18.13special equipment for a disabled member of the assistance unit; and (iii) any vehicle used 18.14for long-distance travel, other than daily commuting, for the employment of a unit member. 18.15    To establish the loan value of vehicles, a county agency must use the N.A.D.A. 18.16Official Used Car Guide, Midwest Edition, for newer model cars. When a vehicle is not 18.17listed in the guidebook, or when the applicant or participant disputes the loan value listed 18.18in the guidebook as unreasonable given the condition of the particular vehicle, the county 18.19agency may require the applicant or participant document the loan value by securing a 18.20written statement from a motor vehicle dealer licensed under section 168.27, stating 18.21the amount that the dealer would pay to purchase the vehicle. The county agency shall 18.22reimburse the applicant or participant for the cost of a written statement that documents 18.23a lower loan value; 18.24    (2) the value of life insurance policies for members of the assistance unit; 18.25    (3) one burial plot per member of an assistance unit; 18.26    (4) the value of personal property needed to produce earned income, including 18.27tools, implements, farm animals, inventory, business loans, business checking and 18.28savings accounts used at least annually and used exclusively for the operation of a 18.29self-employment business, and any motor vehicles if at least 50 percent of the vehicle's use 18.30is to produce income and if the vehicles are essential for the self-employment business; 18.31    (5) the value of personal property not otherwise specified which is commonly 18.32used by household members in day-to-day living such as clothing, necessary household 18.33furniture, equipment, and other basic maintenance items essential for daily living; 18.34    (6) the value of real and personal property owned by a recipient of Supplemental 18.35Security Income or Minnesota supplemental aid; 19.1    (7) the value of corrective payments, but only for the month in which the payment 19.2is received and for the following month; 19.3    (8) a mobile home or other vehicle used by an applicant or participant as the 19.4applicant's or participant's home; 19.5    (9) money in a separate escrow account that is needed to pay real estate taxes or 19.6insurance and that is used for this purpose; 19.7    (10) money held in escrow to cover employee FICA, employee tax withholding, 19.8sales tax withholding, employee worker compensation, business insurance, property rental, 19.9property taxes, and other costs that are paid at least annually, but less often than monthly; 19.10    (11) monthly assistance payments for the current month's or short-term emergency 19.11needs under section 256J.626, subdivision 2; 19.12    (12) the value of school loans, grants, or scholarships for the period they are 19.13intended to cover; 19.14    (13) payments listed in section 256J.21, subdivision 2, clause (9), which are held 19.15in escrow for a period not to exceed three months to replace or repair personal or real 19.16property; 19.17    (14) income received in a budget month through the end of the payment month; 19.18    (15) savings from earned income of a minor child or a minor parent that are set aside 19.19in a separate account designated specifically for future education or employment costs; 19.20    (16) the federal earned income credit, Minnesota working family credit, state and 19.21federal income tax refunds, state homeowners and renters credits under chapter 290A, 19.22property tax rebates and other federal or state tax rebates in the month received and the 19.23following month; 19.24    (17) payments excluded under federal law as long as those payments are held in a 19.25separate account from any nonexcluded funds; 19.26    (18) the assets of children ineligible to receive MFIP benefits because foster care or 19.27adoption assistance payments are made on their behalf; and 19.28    (19) the assets of persons whose income is excluded under section 256J.21, 19.29subdivision 2 , clause (43). 19.30    Sec. 23. Minnesota Statutes 2010, section 256J.53, subdivision 2, is amended to read: 19.31    Subd. 2. Approval of postsecondary education or training. (a) In order for a 19.32postsecondary education or training program to be an approved activity in an employment 19.33plan, the plan must include additional work activities if the education and training 19.34activities do not meet the minimum hours required to meet the federal work participation 20.1rate under Code of Federal Regulations, title 45, sections and new text begin participant new text end 20.2new text begin must be working in unsubsidized employment at least 20 hours per weeknew text end . 20.3    (b) Participants seeking approval of a postsecondary education or training plan 20.4must provide documentation that: 20.5    (1) the employment goal can only be met with the additional education or training; 20.6    (2) there are suitable employment opportunities that require the specific education or 20.7training in the area in which the participant resides or is willing to reside; 20.8    (3) the education or training will result in significantly higher wages for the 20.9participant than the participant could earn without the education or training; 20.10    (4) the participant can meet the requirements for admission into the program; and 20.11    (5) there is a reasonable expectation that the participant will complete the training 20.12program based on such factors as the participant's MFIP assessment, previous education, 20.13training, and work history; current motivation; and changes in previous circumstances. 20.14new text begin (c) The hourly unsubsidized employment requirement does not apply for intensive new text end 20.15new text begin education or training programs lasting 12 weeks or less when full-time attendance is new text end 20.16new text begin required.new text end 20.17    Sec. 24. Minnesota Statutes 2010, section 260C.157, subdivision 3, is amended to read: 20.18    Subd. 3. Juvenile treatment screening team. (a) The responsible social services 20.19agency shall establish a juvenile treatment screening team to conduct screenings and 20.20prepare case plans under this subdivisionnew text begin section 245.487, subdivision 3, and chapters new text end 20.21new text begin 260C and 260D. Screenings shall be conducted within 15 days of a request for a screeningnew text end . 20.22The team, which may be the team constituted under section 245.4885 or 256B.092 or 20.23Minnesota Rules, parts 9530.6600 to 9530.6655, shall consist of social workers, juvenile 20.24justice professionals, and persons with expertise in the treatment of juveniles who are 20.25emotionally disabled, chemically dependent, or have a developmental disability. The team 20.26shall involve parents or guardians in the screening process as appropriatenew text begin , and the child's new text end 20.27new text begin parent, guardian, or permanent legal custodian under section 260C.201, subdivision 11new text end . 20.28The team may be the same team as defined in section 260B.157, subdivision 3. 20.29(b) The social services agency shall determine whether a child brought to its 20.30attention for the purposes described in this section is an Indian child, as defined in section 20.31260C.007, subdivision 21 , and shall determine the identity of the Indian child's tribe, as 20.32defined in section 260.755, subdivision 9. When a child to be evaluated is an Indian child, 20.33the team provided in paragraph (a) shall include a designated representative of the Indian 20.34child's tribe, unless the child's tribal authority declines to appoint a representative. The 21.1Indian child's tribe may delegate its authority to represent the child to any other federally 21.2recognized Indian tribe, as defined in section 260.755, subdivision 12. 21.3(c) If the court, prior to, or as part of, a final disposition, proposes to place a child: 21.4(1) for the primary purpose of treatment for an emotional disturbance, a 21.5developmental disability, or chemical dependency in a residential treatment facility out 21.6of state or in one which is within the state and licensed by the commissioner of human 21.7services under chapter 245A; or 21.8(2) in any out-of-home setting potentially exceeding 30 days in duration, including a 21.9postdispositional placement in a facility licensed by the commissioner of corrections or 21.10human services, the court shall ascertain whether the child is an Indian child and shall 21.11notify the county welfare agency and, if the child is an Indian child, shall notify the Indian 21.12child's tribe. The county's juvenile treatment screening team must either: (i) screen and 21.13evaluate the child and file its recommendations with the court within 14 days of receipt 21.14of the notice; or (ii) elect not to screen a given case and notify the court of that decision 21.15within three working days. 21.16(d) If the screening team has elected to screen and evaluate the child, The child 21.17may not be placed for the primary purpose of treatment for an emotional disturbance, a 21.18developmental disability, or chemical dependency, in a residential treatment facility out of 21.19state nor in a residential treatment facility within the state that is licensed under chapter 21.20245A, unless one of the following conditions applies: 21.21(1) a treatment professional certifies that an emergency requires the placement 21.22of the child in a facility within the state; 21.23(2) the screening team has evaluated the child and recommended that a residential 21.24placement is necessary to meet the child's treatment needs and the safety needs of the 21.25community, that it is a cost-effective means of meeting the treatment needs, and that it 21.26will be of therapeutic value to the child; or 21.27(3) the court, having reviewed a screening team recommendation against placement, 21.28determines to the contrary that a residential placement is necessary. The court shall state 21.29the reasons for its determination in writing, on the record, and shall respond specifically 21.30to the findings and recommendation of the screening team in explaining why the 21.31recommendation was rejected. The attorney representing the child and the prosecuting 21.32attorney shall be afforded an opportunity to be heard on the matter. 21.33(e) When the county's juvenile treatment screening team has elected to screen and 21.34evaluate a child determined to be an Indian child, the team shall provide notice to the 21.35tribe or tribes that accept jurisdiction for the Indian child or that recognize the child as a 22.1member of the tribe or as a person eligible for membership in the tribe, and permit the 22.2tribe's representative to participate in the screening team. 22.3(f) When the Indian child's tribe or tribal health care services provider or Indian 22.4Health Services provider proposes to place a child for the primary purpose of treatment 22.5for an emotional disturbance, a developmental disability, or co-occurring emotional 22.6disturbance and chemical dependency, the Indian child's tribe or the tribe delegated by 22.7the child's tribe shall submit necessary documentation to the county juvenile treatment 22.8screening team, which must invite the Indian child's tribe to designate a representative to 22.9the screening team. 22.10    Sec. 25. Minnesota Statutes 2010, section 260D.01, is amended to read: 22.11260D.01 CHILD IN VOLUNTARY FOSTER CARE FOR TREATMENT. 22.12    (a) Sections 260D.01 to 260D.10, may be cited as the "child in voluntary foster care 22.13for treatment" provisions of the Juvenile Court Act. 22.14    (b) The juvenile court has original and exclusive jurisdiction over a child in 22.15voluntary foster care for treatment upon the filing of a report or petition required under 22.16this chapter. All obligations of the agency to a child and family in foster care contained in 22.17chapter 260C not inconsistent with this chapter are also obligations of the agency with 22.18regard to a child in foster care for treatment under this chapter. 22.19    (c) This chapter shall be construed consistently with the mission of the children's 22.20mental health service system as set out in section 245.487, subdivision 3, and the duties 22.21of an agency under section 256B.092, new text begin 260C.157, new text end and Minnesota Rules, parts 9525.0004 22.22to 9525.0016, to meet the needs of a child with a developmental disability or related 22.23condition. This chapter: 22.24    (1) establishes voluntary foster care through a voluntary foster care agreement as the 22.25means for an agency and a parent to provide needed treatment when the child must be in 22.26foster care to receive necessary treatment for an emotional disturbance or developmental 22.27disability or related condition; 22.28    (2) establishes court review requirements for a child in voluntary foster care for 22.29treatment due to emotional disturbance or developmental disability or a related condition; 22.30    (3) establishes the ongoing responsibility of the parent as legal custodian to visit the 22.31child, to plan together with the agency for the child's treatment needs, to be available and 22.32accessible to the agency to make treatment decisions, and to obtain necessary medical, 22.33dental, and other care for the child; and 22.34    (4) applies to voluntary foster care when the child's parent and the agency agree that 22.35the child's treatment needs require foster care either: 23.1    (i) due to a level of care determination by the agency's screening team informed by 23.2the diagnostic and functional assessment under section 245.4885; or 23.3    (ii) due to a determination regarding the level of services needed by the responsible 23.4social services' screening team under section 256B.092, and Minnesota Rules, parts 23.59525.0004 to 9525.0016. 23.6    (d) This chapter does not apply when there is a current determination under section 23.7626.556 that the child requires child protective services or when the child is in foster care 23.8for any reason other than treatment for the child's emotional disturbance or developmental 23.9disability or related condition. When there is a determination under section 626.556 that 23.10the child requires child protective services based on an assessment that there are safety 23.11and risk issues for the child that have not been mitigated through the parent's engagement 23.12in services or otherwise, or when the child is in foster care for any reason other than 23.13the child's emotional disturbance or developmental disability or related condition, the 23.14provisions of chapter 260C apply. 23.15    (e) The paramount consideration in all proceedings concerning a child in voluntary 23.16foster care for treatment is the safety, health, and the best interests of the child. The 23.17purpose of this chapter is: 23.18    (1) to ensure a child with a disability is provided the services necessary to treat or 23.19ameliorate the symptoms of the child's disability; 23.20    (2) to preserve and strengthen the child's family ties whenever possible and in the 23.21child's best interests, approving the child's placement away from the child's parents only 23.22when the child's need for care or treatment requires it and the child cannot be maintained 23.23in the home of the parent; and 23.24    (3) to ensure the child's parent retains legal custody of the child and associated 23.25decision-making authority unless the child's parent willfully fails or is unable to make 23.26decisions that meet the child's safety, health, and best interests. The court may not find 23.27that the parent willfully fails or is unable to make decisions that meet the child's needs 23.28solely because the parent disagrees with the agency's choice of foster care facility, unless 23.29the agency files a petition under chapter 260C, and establishes by clear and convincing 23.30evidence that the child is in need of protection or services. 23.31    (f) The legal parent-child relationship shall be supported under this chapter by 23.32maintaining the parent's legal authority and responsibility for ongoing planning for the 23.33child and by the agency's assisting the parent, where necessary, to exercise the parent's 23.34ongoing right and obligation to visit or to have reasonable contact with the child. Ongoing 23.35planning means: 24.1    (1) actively participating in the planning and provision of educational services, 24.2medical, and dental care for the child; 24.3    (2) actively planning and participating with the agency and the foster care facility 24.4for the child's treatment needs; and 24.5    (3) planning to meet the child's need for safety, stability, and permanency, and the 24.6child's need to stay connected to the child's family and community. 24.7    (g) The provisions of section 260.012 to ensure placement prevention, family 24.8reunification, and all active and reasonable effort requirements of that section apply. This 24.9chapter shall be construed consistently with the requirements of the Indian Child Welfare 24.10Act of 1978, United States Code, title 25, section 1901, et al., and the provisions of the 24.11Minnesota Indian Family Preservation Act, sections 260.751 to 260.835. 24.12    Sec. 26. Minnesota Statutes 2010, section 393.07, subdivision 10a, is amended to read: 24.13    Subd. 10a. Expedited issuance of food stamps. The commissioner of human 24.14services shall continually monitor the expedited issuance of food stamp benefits to ensure 24.15that each county complies with federal regulations and that households eligible for 24.16expedited issuance of food stamps are identified, processed, and certified within the time 24.17frames prescribed in federal regulations. 24.18County food stamp offices shall screen and issue food stamps to applicants on the 24.19day of application. Applicants who meet the federal criteria for expedited issuance and 24.20have an immediate need for food assistance shall receivenew text begin within two working daysnew text end either: 24.21(1) a manual Authorization to Participate (ATP) card; or 24.22(2) the immediate issuance of food stamp couponsnew text begin benefitsnew text end . 24.23The local food stamp agency shall conspicuously post in each food stamp office a 24.24notice of the availability of and the procedure for applying for expedited issuance and 24.25verbally advise each applicant of the availability of the expedited process. 24.26    Sec. 27. Minnesota Statutes 2010, section 518A.51, is amended to read: 24.27518A.51 FEES FOR IV-D SERVICES. 24.28    (a) When a recipient of IV-D services is no longer receiving assistance under the 24.29state's title IV-A, IV-E foster care, medical assistance, or MinnesotaCare programs, the 24.30public authority responsible for child support enforcement must notify the recipient, 24.31within five working days of the notification of ineligibility, that IV-D services will be 24.32continued unless the public authority is notified to the contrary by the recipient. The 24.33notice must include the implications of continuing to receive IV-D services, including the 24.34available services and fees, cost recovery fees, and distribution policies relating to fees. 25.1    (b) An application fee of $25 shall be paid by the person who applies for child 25.2support and maintenance collection services, except persons who are receiving public 25.3assistance as defined in section 256.741 and the diversionary work program under section 25.4256J.95 , persons who transfer from public assistance to nonpublic assistance status, and 25.5minor parents and parents enrolled in a public secondary school, area learning center, or 25.6alternative learning program approved by the commissioner of education. 25.7    (c) In the case of an individual who has never received assistance under a state 25.8program funded under Title IV-A of the Social Security Act and for whom the public 25.9authority has collected at least $500 of support, the public authority must impose an 25.10annual federal collections fee of $25 for each case in which services are furnished. This 25.11fee must be retained by the public authority from support collected on behalf of the 25.12individual, but not from the first $500 collected. 25.13    (d) When the public authority provides full IV-D services to an obligee who has 25.14applied for those services, upon written notice to the obligee, the public authority must 25.15charge a cost recovery fee of one percent of the amount collected. This fee must be 25.16deducted from the amount of the child support and maintenance collected and not assigned 25.17under section 256.741 before disbursement to the obligee. This fee does not apply to an 25.18obligee who: 25.19    (1) is currently receiving assistance under the state's title IV-A, IV-E foster care, 25.20medical assistance, or MinnesotaCare programs; or 25.21    (2) has received assistance under the state's title IV-A or IV-E foster care programs, 25.22until the person has not received this assistance for 24 consecutive months. 25.23     (e) When the public authority provides full IV-D services to an obligor who has 25.24applied for such services, upon written notice to the obligor, the public authority must 25.25charge a cost recovery fee of one percent of the monthly court-ordered child support and 25.26maintenance obligation. The fee may be collected through income withholding, as well 25.27as by any other enforcement remedy available to the public authority responsible for 25.28child support enforcement. 25.29     (f) Fees assessed by state and federal tax agencies for collection of overdue support 25.30owed to or on behalf of a person not receiving public assistance must be imposed on the 25.31person for whom these services are provided. The public authority upon written notice to 25.32the obligee shall assess a fee of $25 to the person not receiving public assistance for each 25.33successful federal tax interception. The fee must be withheld prior to the release of the 25.34funds received from each interception and deposited in the general fund. 25.35     (g) Federal collections fees collected under paragraph (c) and cost recovery 25.36fees collected under paragraphs (d) and (e)new text begin , retained by the commissioner of human new text end 26.1new text begin services,new text end shall be considered child support program income according to Code of Federal 26.2Regulations, title 45, section 304.50, and shall be deposited in the special revenue fund 26.3account established under paragraph (i). The commissioner of human services must elect 26.4to recover costs based on either actual or standardized costs. 26.5     (h) The limitations of this section on the assessment of fees shall not apply to 26.6the extent inconsistent with the requirements of federal law for receiving funds for the 26.7programs under Title IV-A and Title IV-D of the Social Security Act, United States Code, 26.8title 42, sections 601 to 613 and United States Code, title 42, sections 651 to 662. 26.9     (i) The commissioner of human services is authorized to establish a special revenue 26.10fund account to receive the federal collections fees collected under paragraph (c) and cost 26.11recovery fees collected under paragraphs (d) and (e). A portion of the nonfederal share of 26.12these fees may be retained for expenditures necessary to administer the fees and must be 26.13transferred to the child support system special revenue account. The remaining nonfederal 26.14share of the federal collections fees and cost recovery fees must be retained by the 26.15commissioner and dedicated to the child support general fund county performance-based 26.16grant account authorized under sections and .new text begin The commissioner shall new text end 26.17new text begin distribute the remaining nonfederal share of these fees to the counties quarterly using the new text end 26.18new text begin methodology specified in section 256.979, subdivision 11. The funds received by the new text end 26.19new text begin counties must be reinvested in the child support enforcement program, and the counties new text end 26.20new text begin shall not reduce the funding of their child support programs by the amount of funding new text end 26.21new text begin distributed.new text end 26.22    Sec. 28. new text begin GRANT PROGRAM TO PROMOTE HEALTHY COMMUNITY new text end 26.23new text begin INITIATIVES.new text end 26.24    new text begin (a) The commissioner of human services must contract with the Search Institute to new text end 26.25new text begin help local communities develop, expand, and maintain the tools, training, and resources new text end 26.26new text begin needed to foster positive community development and effectively engage people in their new text end 26.27new text begin community. The Search Institute must: (1) provide training in community mobilization, new text end 26.28new text begin youth development, and assets getting to outcomes; (2) provide ongoing technical new text end 26.29new text begin assistance to communities receiving grants under this section; (3) use best practices to new text end 26.30new text begin promote community development; (4) share best program practices with other interested new text end 26.31new text begin communities; (5) create electronic and other opportunities for communities to share new text end 26.32new text begin experiences in and resources for promoting healthy community development; and (6) new text end 26.33new text begin provide an annual report of the strong communities project.new text end 26.34    new text begin (b) Specifically, the Search Institute must use a competitive grant process to select new text end 26.35new text begin four interested communities throughout Minnesota to undertake strong community new text end 27.1new text begin mobilization initiatives to support communities wishing to catalyze multiple sectors to new text end 27.2new text begin create or strengthen a community collaboration to address issues of poverty in their new text end 27.3new text begin communities. The Search Institute must provide the selected communities with the new text end 27.4new text begin tools, training, and resources they need for successfully implementing initiatives focused new text end 27.5new text begin on strengthening the community. The Search Institute also must use a competitive new text end 27.6new text begin grant process to provide four strong community innovation grants to encourage current new text end 27.7new text begin community initiatives to bring new innovation approaches to their work to reduce poverty. new text end 27.8new text begin Finally, the Search Institute must work to strengthen networking and information sharing new text end 27.9new text begin activities among all healthy community initiatives throughout Minnesota, including new text end 27.10new text begin sharing best program practices and providing personal and electronic opportunities for new text end 27.11new text begin peer learning and ongoing program support.new text end 27.12new text begin (c) In order to receive a grant under paragraph (b), a community must show new text end 27.13new text begin involvement of at least three sectors of their community and the active leadership of both new text end 27.14new text begin youth and adults. Sectors may include, but are not limited to, local government, schools, new text end 27.15new text begin community action agencies, faith communities, businesses, higher education institutions, new text end 27.16new text begin and the medical community. In addition, communities must agree to: (1) attend training new text end 27.17new text begin on community mobilization processes and strength-based approaches; (2) apply the assets new text end 27.18new text begin getting to outcomes process in their initiative; (3) meet at least two times during the new text end 27.19new text begin grant period to share successes and challenges with other grantees; (4) participate on an new text end 27.20new text begin electronic listserv to share information throughout the period on their work; and (5) all new text end 27.21new text begin communication requirements and reporting processes.new text end 27.22    new text begin (d) The commissioner of human services must evaluate the effectiveness of this new text end 27.23new text begin program and must recommend to the committees of the legislature with jurisdiction over new text end 27.24new text begin health and human services reform and finance by February 15, 2013, whether or not new text end 27.25new text begin to make the program available statewide. The Search Institute annually must report to new text end 27.26new text begin the commissioner of human services on the services it provided and the grant money new text end 27.27new text begin it expended under this section.new text end 27.28new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end 27.29    Sec. 29. new text begin CIRCLES OF SUPPORT GRANTS.new text end 27.30new text begin The commissioner of human services must provide grants to community action new text end 27.31new text begin agencies to help local communities develop, expand, and maintain the tools, training, and new text end 27.32new text begin resources needed to foster social assets to assist people out of poverty through circles of new text end 27.33new text begin support. The circles of support model must provide a framework for a community to build new text end 27.34new text begin relationships across class and race lines so that people can work together to advocate for new text end 27.35new text begin change in their communities and move individuals toward self-sufficiency.new text end 28.1new text begin Specifically, circles of support initiatives must focus on increasing social capital, new text end 28.2new text begin income, educational attainment, and individual accountability, while reducing debt, new text end 28.3new text begin service dependency, and addressing systemic disparities that hold poverty in place. The new text end 28.4new text begin effort must support the development of local guiding coalitions as the link between the new text end 28.5new text begin community and circles of support for resource development and funding leverage.new text end 28.6new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2011.new text end 28.7    Sec. 30. new text begin PILOT PROJECT FOR HOMELESS ADULTS TO BE IN-HOME new text end 28.8new text begin CARETAKERS OF FORECLOSED HOMES.new text end 28.9new text begin (a) Stepping Stone Emergency Housing may form a partnership with local banks new text end 28.10new text begin who own foreclosed homes to:new text end 28.11new text begin (1) utilize foreclosed homes for graduates of Stepping Stone Emergency Housing to new text end 28.12new text begin become in-home caretakers of those homes;new text end 28.13new text begin (2) provide the security needed by the homes' banking owners and others to help new text end 28.14new text begin stabilize neighborhoods through carefully maintained homes that will prevent vandalism, new text end 28.15new text begin squatters, and drug houses;new text end 28.16new text begin (3) provide transitional housing to up to four homeless clients per home after they new text end 28.17new text begin graduate from emergency housing allowing the clients time to find permanent housing new text end 28.18new text begin in a tight affordable housing market; andnew text end 28.19new text begin (4) provide management of the project to ensure proper oversight for the homes' new text end 28.20new text begin owners and support of the caretakers.new text end 28.21new text begin (b) This section expires June 30, 2013.new text end 28.22    Sec. 31. new text begin HOMELESS SHELTERS; SCHOOL DISTRICTS.new text end 28.23new text begin School districts may coordinate with local units of government and homeless new text end 28.24new text begin services providers to use empty school buildings as homeless shelters.new text end 28.25    Sec. 32. new text begin REQUIREMENT FOR LIQUOR STORES, TOBACCO STORES, new text end 28.26new text begin GAMBLING ESTABLISHMENTS, AND TATTOO PARLORS.new text end 28.27new text begin Liquor stores, tobacco stores, gambling establishments, and tattoo parlors must new text end 28.28new text begin negotiate with their third-party processors to block EBT card cash transactions at their new text end 28.29new text begin places of business and withdrawals of cash at automatic teller machines located in their new text end 28.30new text begin places of business.new text end 28.31    Sec. 33. new text begin MINNESOTA EBT BUSINESS TASK FORCE.new text end 29.1    new text begin Subdivision 1.new text end new text begin Members.new text end new text begin The Minnesota EBT Business Task Force includes seven new text end 29.2new text begin members, appointed as follows:new text end 29.3new text begin (1) two members of the Minnesota house of representatives, one appointed by the new text end 29.4new text begin speaker of the house and one appointed by the minority leader;new text end 29.5new text begin (2) two members of the Minnesota senate, one appointed by the senate majority new text end 29.6new text begin leader and one appointed by the senate minority leader;new text end 29.7new text begin (3) the commissioner of human services, or designee;new text end 29.8new text begin (4) an appointee of the Minnesota Grocers Association; andnew text end 29.9new text begin (5) a credit card processor, appointed by the commissioner of human services.new text end 29.10    new text begin Subd. 2.new text end new text begin Duties.new text end new text begin The Minnesota EBT Business Task Force shall create a workable new text end 29.11new text begin strategy to eliminate the purchase of tobacco and alcoholic beverages by recipients of the new text end 29.12new text begin general assistance program and Minnesota supplemental aid program under Minnesota new text end 29.13new text begin Statutes, chapter 256D, and programs under Minnesota Statutes, chapter 256J, using EBT new text end 29.14new text begin cards. The task force will consider cost to the state, feasibility of execution at retail, and new text end 29.15new text begin ease of use and privacy for EBT cardholders.new text end 29.16    new text begin Subd. 3.new text end new text begin Report.new text end new text begin The task force will report back to the legislative committees with new text end 29.17new text begin jurisdiction over health and human services policy and finance by April 1, 2012, with new text end 29.18new text begin recommendations related to the task force duties under subdivision 2.new text end 29.19    new text begin Subd. 4.new text end new text begin Expiration.new text end new text begin The task force expires on June 30, 2012.new text end 29.20    Sec. 34. new text begin STREAMLINING CHILDREN AND COMMUNITY SERVICES ACT new text end 29.21new text begin REPORTING REQUIREMENTS.new text end 29.22    new text begin The commissioner of human services and county human services representatives, in new text end 29.23new text begin consultation with other interested parties, shall develop a streamlined alternative to current new text end 29.24new text begin reporting requirements related to the Children and Community Services Act service plan. new text end 29.25new text begin The commissioner shall submit recommendations and draft legislation to the chairs and new text end 29.26new text begin ranking minority members of the committees having jurisdiction over human services no new text end 29.27new text begin later than November 15, 2012.new text end 29.28    Sec. 35. new text begin REPEALER.new text end 29.29new text begin (a)new text end new text begin Minnesota Statutes 2010, sections 256.979, subdivisions 5, 6, 7, and 10; new text end 29.30new text begin 256.9791; 256.9862, subdivision 2; and 256D.46, subdivisions 2 and 3,new text end new text begin are repealed.new text end 29.31new text begin (b)new text end new text begin Minnesota Rules, parts 3400.0130, subpart 8; and 9500.1261, subparts 3, items D new text end 29.32new text begin and E, 4, and 5,new text end new text begin are repealed effective September 3, 2012.new text end 30.1ARTICLE 2 30.2DEPARTMENT OF HEALTH 30.3    Section 1. Minnesota Statutes 2010, section 62D.08, subdivision 7, is amended to read: 30.4    Subd. 7. Consistent administrative expenses and investment income reporting. 30.5(a) Every health maintenance organization must directly allocate administrative expenses 30.6to specific lines of business or products when such information is available. new text begin The definition new text end 30.7new text begin of administrative expenses must be consistent with that of the National Association of new text end 30.8new text begin Insurance Commissioners (NAIC) as provided in the most current NAIC blank. new text end Remaining 30.9expenses that cannot be directly allocated must be allocated based on other methods, as 30.10recommended by the Advisory Group on Administrative Expenses. Health maintenance 30.11organizations must submit this information, including administrative expenses for dental 30.12services, using the reporting template provided by the commissioner of health. 30.13(b) Every health maintenance organization must allocate investment income based 30.14on cumulative net income over time by business line or product and must submit this 30.15information, including investment income for dental services, using the reporting template 30.16provided by the commissioner of health. 30.17    Sec. 2. Minnesota Statutes 2010, section 62J.04, subdivision 3, is amended to read: 30.18    Subd. 3. Cost containment duties. The commissioner shall: 30.19(1) establish statewide and regional cost containment goals for total health care 30.20spending under this section and collect data as described in sections 62J.38 to new text begin and new text end 30.21new text begin 62J.40new text end to monitor statewide achievement of the cost containment goals; 30.22(2) divide the state into no fewer than four regions, with one of those regions being 30.23the Minneapolis/St. Paul metropolitan statistical area but excluding Chisago, Isanti, 30.24Wright, and Sherburne Counties, for purposes of fostering the development of regional 30.25health planning and coordination of health care delivery among regional health care 30.26systems and working to achieve the cost containment goals; 30.27(3) monitor the quality of health care throughout the state and take action as 30.28necessary to ensure an appropriate level of quality; 30.29(4) issue recommendations regarding uniform billing forms, uniform electronic 30.30billing procedures and data interchanges, patient identification cards, and other uniform 30.31claims and administrative procedures for health care providers and private and public 30.32sector payers. In developing the recommendations, the commissioner shall review the 30.33work of the work group on electronic data interchange (WEDI) and the American National 30.34Standards Institute (ANSI) at the national level, and the work being done at the state and 31.1local level. The commissioner may adopt rules requiring the use of the Uniform Bill 31.282/92 form, the National Council of Prescription Drug Providers (NCPDP) 3.2 electronic 31.3version, the Centers for Medicare and Medicaid Services 1500 form, or other standardized 31.4forms or procedures; 31.5(5) undertake health planning responsibilities; 31.6(6) authorize, fund, or promote research and experimentation on new technologies 31.7and health care procedures; 31.8(7) within the limits of appropriations for these purposes, administer or contract for 31.9statewide consumer education and wellness programs that will improve the health of 31.10Minnesotans and increase individual responsibility relating to personal health and the 31.11delivery of health care services, undertake prevention programs including initiatives to 31.12improve birth outcomes, expand childhood immunization efforts, and provide start-up 31.13grants for worksite wellness programs; 31.14(8) undertake other activities to monitor and oversee the delivery of health care 31.15services in Minnesota with the goal of improving affordability, quality, and accessibility of 31.16health care for all Minnesotans; and 31.17(9) make the cost containment goal data available to the public in a 31.18consumer-oriented manner. 31.19new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2011.new text end 31.20    Sec. 3. Minnesota Statutes 2010, section 62J.17, subdivision 4a, is amended to read: 31.21    Subd. 4a. Expenditure reporting. Each hospital, outpatient surgical center, 31.22diagnostic imaging center, and physician clinic shall report annually to the commissioner 31.23on all major spending commitments, in the form and manner specified by the 31.24commissioner. The report shall include the following information: 31.25    (a) a description of major spending commitments made during the previous year, 31.26including the total dollar amount of major spending commitments and purpose of the 31.27expenditures; 31.28    (b) the cost of land acquisition, construction of new facilities, and renovation of 31.29existing facilities; 31.30    (c) the cost of purchased or leased medical equipment, by type of equipment; 31.31    (d) expenditures by type for specialty care and new specialized services; 31.32    (e) information on the amount and types of added capacity for diagnostic imaging 31.33services, outpatient surgical services, and new specialized services; and 31.34    (f) information on investments in electronic medical records systems. 32.1For hospitals and outpatient surgical centers, this information shall be included in reports 32.2to the commissioner that are required under section 144.698. For diagnostic imaging 32.3centers, this information shall be included in reports to the commissioner that are required 32.4under section 144.565. For physician clinics, this information shall be included in reports 32.5to the commissioner that are required under section . For all other health care 32.6providers that are subject to this reporting requirement, reports must be submitted to the 32.7commissioner by March 1 each year for the preceding calendar year. 32.8new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2011.new text end 32.9    Sec. 4. Minnesota Statutes 2010, section 62J.495, is amended by adding a subdivision 32.10to read: 32.11    new text begin Subd. 7.new text end new text begin Exemption.new text end new text begin Any clinical practice with a total annual net revenue of less new text end 32.12new text begin than $500,000, and that has not received a state or federal grant for implementation new text end 32.13new text begin of electronic health records, is exempt from the requirements of subdivision 1. This new text end 32.14new text begin subdivision expires December 31, 2020.new text end 32.15    Sec. 5. Minnesota Statutes 2010, section 62J.497, is amended by adding a subdivision 32.16to read: 32.17    new text begin Subd. 6.new text end new text begin Additional standards for electronic prescribing.new text end new text begin By January 1, 2012, new text end 32.18new text begin the commissioner of health, in consultation with the Minnesota e-Health Advisory new text end 32.19new text begin Committee, must develop a method for incorporation of the following transactions into the new text end 32.20new text begin requirements and standards for electronic prescribing provided in subdivisions 2 and 3:new text end 32.21new text begin (1) submission of requests for a formulary exception based on information required new text end 32.22new text begin on the form developed according to subdivision 4; andnew text end 32.23new text begin (2) submission of prior authorization requests based on information required on the new text end 32.24new text begin form developed according to subdivision 5.new text end 32.25    Sec. 6. Minnesota Statutes 2010, section 62J.692, is amended to read: 32.2662J.692 MEDICAL EDUCATION. 32.27    Subdivision 1. Definitions. For purposes of this section, the following definitions 32.28apply: 32.29    (a) "Accredited clinical training" means the clinical training provided by a 32.30medical education program that is accredited through an organization recognized by the 32.31Department of Education, the Centers for Medicare and Medicaid Services, or another 32.32national body who reviews the accrediting organizations for multiple disciplines and 33.1whose standards for recognizing accrediting organizations are reviewed and approved by 33.2the commissioner of health in consultation with the Medical Education and Research 33.3Advisory Committee. 33.4    (b) "Commissioner" means the commissioner of health. 33.5    (c) "Clinical medical education program" means the accredited clinical training of 33.6physicians (medical students and residents), doctor of pharmacy practitioners, doctors 33.7of chiropractic, dentists, advanced practice nurses (clinical nurse specialists, certified 33.8registered nurse anesthetists, nurse practitioners, and certified nurse midwives), and 33.9physician assistants. 33.10    (d) "Sponsoring institution" means a hospital, school, or consortium located in 33.11Minnesota that sponsors and maintains primary organizational and financial responsibility 33.12for a clinical medical education program in Minnesota and which is accountable to the 33.13accrediting body. 33.14    (e) "Teaching institution" means a hospital, medical center, clinic, or other 33.15organization that conducts a clinical medical education program in Minnesota. 33.16    (f) "Trainee" means a student or resident involved in a clinical medical education 33.17program. 33.18    (g) "Eligible trainee FTE's" means the number of trainees, as measured by full-time 33.19equivalent counts, that are at training sites located in Minnesota with currently active 33.20medical assistance enrollment status and a National Provider Identification (NPI) number 33.21where training occurs in either an inpatient or ambulatory patient care setting and where 33.22the training is funded, in part, by patient care revenues. Training that occurs in nursing 33.23facility settings is not eligible for funding under this section. 33.24    Subd. 3. Application process. (a) A clinical medical education program conducted 33.25in Minnesota by a teaching institution to train physicians, doctor of pharmacy practitioners, 33.26dentists,new text begin advanced dental therapists,new text end chiropractors, or physician assistants is eligible for 33.27funds under subdivision 4new text begin or 11, as appropriate,new text end if the program: 33.28(1) is funded, in part, by patient care revenues; 33.29(2) occurs in patient care settings that face increased financial pressure as a result of 33.30competition with nonteaching patient care entitiesnew text begin training activitiesnew text end ; and 33.31(3) emphasizes primary care or specialties that are in undersupply in Minnesotanew text begin in new text end 33.32new text begin rural areas or for racial, ethnic, or cultural populations in the state experiencing health new text end 33.33new text begin disparitiesnew text end . 33.34A clinical medical education program that trains pediatricians is requested to include 33.35in its program curriculum training in case management and medication management for 33.36children suffering from mental illness to be eligible for funds under subdivision 4. 34.1(b) A clinical medical education program for advanced practice nursingnew text begin , registered new text end 34.2new text begin nurses, or licensed practical nursesnew text end is eligible for funds under subdivision 4new text begin or 11, as new text end 34.3new text begin appropriate,new text end if the program meets the eligibility requirements in paragraph (a), clauses 34.4(1) to (3), and is sponsored by the University of Minnesota Academic Health Center, 34.5the Mayo Foundation, or institutions that are part of the Minnesota State Colleges and 34.6Universities system or members of the Minnesota Private College Council. 34.7(c) Applications must be submitted to the commissioner by a sponsoring institution 34.8on behalf of an eligible clinical medical education program and must be received by 34.9October 31 of each year for distribution in the following year. An application for funds 34.10must contain the following information: 34.11(1) the official name and address of the sponsoring institution and the official 34.12name and site address of the clinical medical education programs on whose behalf the 34.13sponsoring institution is applying; 34.14(2) the name, title, and business address of those persons responsible for 34.15administering the funds; 34.16(3) for each clinical medical education program for which funds are being sought; 34.17the type and specialty orientation of trainees in the program; the name, site address, and 34.18medical assistance provider numbernew text begin or National Provider Identification number (NPI)new text end of 34.19each training site used in the program; the total number of trainees at each training site; 34.20and the total number of eligible trainee FTEs at each site; and 34.21(4) other supporting information the commissioner deems necessary to determine 34.22program eligibility based on the criteria in paragraphs (a) and (b) and to ensure the 34.23equitablenew text begin appropriatenew text end distribution of funds. 34.24(d) An application must include the information specified in clauses (1) to (3) for 34.25each clinical medical education program on an annual basis for three consecutive years. 34.26After that time, an application must include the information specified in clauses (1) to (3) 34.27when requested, at the discretion of the commissioner: 34.28(1) audited clinical training costs per trainee for each clinical medical education 34.29program when available or estimates of clinical training costs based on audited financial 34.30data; 34.31(2) a description of current sources of funding for clinical medical education costs, 34.32including a description and dollar amount of all state and federal financial support, 34.33including Medicare direct and indirect payments; and 34.34(3) other revenue received for the purposes of clinical training. 34.35(e) An applicant that does not provide information requested by the commissioner 34.36shall not be eligible for funds for the current funding cycle. 35.1    Subd. 4. Distribution of funds. (a) Following the distribution described under 35.2paragraph (b), the commissioner shall annually distribute the available medical education 35.3funds to all qualifying applicants based on a distribution formula that reflects a summation 35.4of two factors: 35.5    (1) a public program volume factor, which is determined by the total volume of 35.6public program revenue received by each training site as a percentage of all public 35.7program revenue received by all training sites in the fund pool; andnew text begin .new text end 35.8    (2) a supplemental public program volume factor, which is determined by providing 35.9a supplemental payment of 20 percent of each training site's grant to training sites whose 35.10public program revenue accounted for at least 0.98 percent of the total public program 35.11revenue received by all eligible training sites. Grants to training sites whose public 35.12program revenue accounted for less than 0.98 percent of the total public program revenue 35.13received by all eligible training sites shall be reduced by an amount equal to the total 35.14value of the supplemental payment. 35.15    Public program revenue for the distribution formula includes revenue from medical 35.16assistance, prepaid medical assistance, general assistance medical care, and prepaid 35.17general assistance medical care. Training sites that receive no public program revenue 35.18are ineligible for funds available under this subdivision. For purposes of determining 35.19training-site level grants to be distributed under paragraph (a), total statewide average 35.20costs per trainee for medical residents is based on audited clinical training costs per trainee 35.21in primary care clinical medical education programs for medical residents. Total statewide 35.22average costs per trainee for dental residents is based on audited clinical training costs 35.23per trainee in clinical medical education programs for dental students. Total statewide 35.24average costs per trainee for pharmacy residents is based on audited clinical training costs 35.25per trainee in clinical medical education programs for pharmacy students.new text begin Training sites new text end 35.26new text begin whose training-site level grant is less than $1,000, based on the formula described in this new text end 35.27new text begin paragraph, are ineligible for funds available under this subdivision.new text end 35.28    (b) $5,350,000new text begin $4,900,000new text end of the available medical education fundsnew text begin in fiscal year new text end 35.29new text begin 2012 and $3,044,000 beginning in fiscal year 2013new text end shall be distributed new text begin to fund training new text end 35.30new text begin designed to address health disparities new text end as follows: 35.31    (1) $1,475,000new text begin $500,000 in fiscal year 2012 and $200,000 beginning in fiscal year new text end 35.32new text begin 2013new text end to the University of Minnesota Medical Center-Fairviewnew text begin the White Earth Band of new text end 35.33new text begin Ojibwe Indians according to section 145.9271new text end ; 35.34    (2) $2,075,000new text begin $600,000 in fiscal year 2012 and $200,000 beginning in fiscal new text end 35.35new text begin year 2013new text end to the University of Minnesota School of Dentistrynew text begin University of Minnesota new text end 35.36new text begin according to section 137.395new text end ; and 36.1new text begin (3) $500,000 in fiscal year 2012 and $200,000 beginning in fiscal year 2013 shall new text end 36.2new text begin be distributed to the community health centers development grants program according new text end 36.3new text begin to section 145.987;new text end 36.4new text begin (4) $500,000 in fiscal year 2012 and $200,000 beginning in fiscal year 2013 shall be new text end 36.5new text begin distributed to the community mental health centers grant program according to section new text end 36.6new text begin 145.9272;new text end 36.7new text begin (5) $1,000,000 in fiscal year 2012 and $444,000 beginning in fiscal year 2013 shall new text end 36.8new text begin be distributed to the health careers opportunities grant program according to section new text end 36.9new text begin 144.1499; andnew text end 36.10    (3)new text begin (6)new text end $1,800,000 to the Academic Health Center. $150,000 of the funds distributed 36.11to the Academic Health Center under this paragraph shall be used for a program to assist 36.12internationally trained physicians who are legal residents and who commit to serving 36.13underserved Minnesota communities in a health professional shortage area to successfully 36.14compete for family medicine residency programs at the University of Minnesota. 36.15    (c) Funds distributed shall not be used to displace current funding appropriations 36.16from federal or state sources. 36.17    (d) Funds shall be distributed to the sponsoring institutions indicating the amount 36.18to be distributed to each of the sponsor's clinical medical education programs based on 36.19the criteria in this subdivision and in accordance with the commissioner's approval letter. 36.20Each clinical medical education program must distribute funds allocated under paragraph 36.21(a) to the training sites as specified in the commissioner's approval letter. Sponsoring 36.22institutions, which are accredited through an organization recognized by the Department 36.23of Education or the Centers for Medicare and Medicaid Services, may contract directly 36.24with training sites to provide clinical training. To ensure the quality of clinical training, 36.25those accredited sponsoring institutions must: 36.26    (1) develop contracts specifying the terms, expectations, and outcomes of the clinical 36.27training conducted at sites; and 36.28    (2) take necessary action if the contract requirements are not met. Action may 36.29include the withholding of payments under this section or the removal of students from 36.30the site. 36.31    (e) Any funds not distributed in accordance with the commissioner's approval letter 36.32must be returned to the medical education and research fund within 30 days of receiving 36.33notice from the commissioner. The commissioner shall distribute returned funds to the 36.34appropriate training sites in accordance with the commissioner's approval letter. 37.1    (f) A maximum of $150,000 of the funds dedicated to the commissioner under 37.2section 297F.10, subdivision 1, clause (2), may be used by the commissioner for 37.3administrative expenses associated with implementing this section. 37.4    Subd. 5. Report. (a) Sponsoring institutions receiving funds under this section 37.5must sign and submit a medical education grant verification report (GVR) to verify that 37.6the correct grant amount was forwarded to each eligible training site. If the sponsoring 37.7institution fails to submit the GVR by the stated deadline, or to request and meet 37.8the deadline for an extension, the sponsoring institution is required to return the full 37.9amount of funds received to the commissioner within 30 days of receiving notice from 37.10the commissioner. The commissioner shall distribute returned funds to the appropriate 37.11training sites in accordance with the commissioner's approval letter. 37.12    (b) The reports must provide verification of the distribution of the funds and must 37.13include: 37.14    (1) the total number of eligible trainee FTEs in each clinical medical education 37.15program; 37.16    (2) the name of each funded program and, for each program, the dollar amount 37.17distributed to each training site; 37.18    (3) documentation of any discrepancies between the initial grant distribution notice 37.19included in the commissioner's approval letter and the actual distribution; 37.20    (4) a statement by the sponsoring institution stating that the completed grant 37.21verification report is valid and accurate; and 37.22    (5) other information the commissioner, with advice from the advisory committee, 37.23deems appropriate to evaluate the effectiveness of the use of funds for medical education. 37.24    (c) By February 15 of each year, the commissioner, with advice from the 37.25advisory committee, shall provide an annual summary report to the legislature on the 37.26implementation of this section. 37.27    Subd. 6. Other available funds. The commissioner is authorized to distribute, in 37.28accordance with subdivision 4, funds made available through: 37.29(1) voluntary contributions by employers or other entities; 37.30(2) allocations for the commissioner of human services to support medical education 37.31and research; and 37.32(3) other sources as identified and deemed appropriate by the legislature for 37.33inclusion in the fund. 37.34    Subd. 7. Transfers from the commissioner of human services. Of the amount 37.35transferred according to section 256B.69, subdivision 5c, paragraph (a), clauses (1) to (4), 37.36$21,714,000 shall be distributed as follows: 38.1(1) $2,157,000 shall be distributed by the commissioner to the University of 38.2Minnesota Board of Regents for the purposes described in sections 137.38 to 137.40; 38.3(2) $1,035,360 shall be distributed by the commissioner to the Hennepin County 38.4Medical Center for clinical medical education; 38.5(3) $17,400,000 shall be distributed by the commissioner to the University of 38.6Minnesota Board of Regents for purposes of medical education; 38.7(4) $1,121,640new text begin $1,021,640new text end shall be distributed by the commissioner to clinical 38.8medical education dental innovation grants in accordance with subdivision 7a; and 38.9(5)new text begin $100,000 shall be distributed to the health careers opportunities grant program new text end 38.10new text begin according to section 144.1499; andnew text end 38.11 new text begin (6) new text end the remainder of the amount transferred according to section 256B.69, 38.12subdivision 5c, clauses (1) to (4), shall be distributed by the commissioner annually to 38.13clinical medical education programs that meet the qualifications of subdivision 3 based on 38.14the formula in subdivision 4, paragraph (a)new text begin , or subdivision 11, as appropriatenew text end . 38.15    Subd. 7a. Clinical medical education innovations grants. (a) The commissioner 38.16shall award grants to teaching institutions and clinical training sites for projects thatnew text begin new text end 38.17new text begin provide training to new text end increase dental access for underserved populations and promote 38.18innovative clinical training of dental professionalsnew text begin and for racial, ethnic, or cultural new text end 38.19new text begin populations in the state experiencing health disparitiesnew text end . In awarding the grants, the 38.20commissioner, in consultation with the commissioner of human services, shall consider 38.21the following: 38.22(1) potential to successfully increase access to an underserved population; 38.23(2) the long-term viability of the project to improve access beyond the period 38.24of initial funding; 38.25(3) evidence of collaboration between the applicant and local communities;new text begin andnew text end 38.26(4) the efficiency in the use of the funding; and 38.27(5)new text begin (3)new text end the priority level of the project in relation to state clinical education, access, 38.28andnew text begin health disparitynew text end workforce goals. 38.29(b) The commissioner shall periodically evaluate the priorities in awarding the 38.30innovations grants in order to ensure that the priorities meet the changing workforce 38.31needs of the state. 38.32    Subd. 8. Federal financial participation. The commissioner of human services 38.33shall seek to maximize federal financial participation in payments for medical education 38.34and research costs. 39.1    The commissioner shall use physician clinic rates where possible to maximize 39.2federal financial participation. Any additional funds that become available must be 39.3distributed under subdivision 4, paragraph (a)new text begin , or 11, as appropriatenew text end . 39.4    Subd. 9. Review of eligible providers. The commissioner and the Medical 39.5Education and Research Costs Advisory Committee may review provider groups included 39.6in the definition of a clinical medical education program to assure that the distribution of 39.7the funds continue to be consistent with the purpose of this section. The results of any 39.8such reviews must be reported to the Legislative Commission on Health Care Access. 39.9    new text begin Subd. 11.new text end new text begin Distribution of funds.new text end new text begin (a) Upon receiving federal approval, the new text end 39.10new text begin commissioner shall annually distribute the available medical education funds to all new text end 39.11new text begin qualifying applicants based on the following distribution formula, which supersedes the new text end 39.12new text begin formula described in subdivision 4, paragraphs (a) and (b):new text end 39.13new text begin (1) funds received pursuant to section 297F.10 shall be distributed to eligible clinical new text end 39.14new text begin training sites using a public program volume factor, which is determined by the total new text end 39.15new text begin volume of public program revenue received by each eligible training site as a percentage new text end 39.16new text begin of all public program revenue received by all eligible training sites in the fund pool. Only new text end 39.17new text begin clinical training that occurs in a hospital that reports financial, utilization, and services new text end 39.18new text begin data to the commissioner of health, pursuant to sections 144.564 and 144.695 to 144.703 new text end 39.19new text begin and Minnesota Rules, chapter 4650, is eligible for funding under this clause; andnew text end 39.20new text begin (2) funds transferred according to section 256B.69, subdivision 5c, paragraph (a), new text end 39.21new text begin clauses (1) to (4), shall be distributed to eligible training sites based on the total number of new text end 39.22new text begin eligible trainee FTEs and the total statewide average costs per FTE, by type of trainee, in new text end 39.23new text begin each clinical medical education program. The number of eligible trainee FTEs for funds new text end 39.24new text begin distributed under this clause is determined using the following steps:new text end 39.25new text begin (i) each FTE trainee from an advanced practice nursing, physician assistant, family new text end 39.26new text begin medicine, internal medicine, general pediatrics, or psychiatry program is weighted at 1.25. new text end 39.27new text begin Each FTE trainee from any other eligible training program is weighted at 1.0;new text end 39.28new text begin (ii) each FTE trainee at a clinical training site located in an isolated rural area new text end 39.29new text begin according to the four category classification of the Rural Urban Commuting Area (RUCA) new text end 39.30new text begin system developed for the United States Health Resources and Services Administration new text end 39.31new text begin shall be weighted at the weight in item (i) multiplied by 1.5; each FTE trainee at a clinical new text end 39.32new text begin training site located in a small rural area according to the RUCA system shall be weighted new text end 39.33new text begin at the weight in item (i) multiplied by 1.25; each FTE trainee at a clinical training site new text end 39.34new text begin located in a large rural area according to the RUCA system shall be weighted at the weight new text end 39.35new text begin in item (i) multiplied by 1.1; and each FTE trainee at a clinical training site located in an new text end 40.1new text begin urban area according to the RUCA system shall be weighted at the weight in item (i) new text end 40.2new text begin multiplied by 1.0;new text end 40.3new text begin (iii) each FTE trainee at a clinical training site that is a hospital eligible for funding new text end 40.4new text begin under clause (1) shall be weighted at the weight in item (ii) multiplied by 0.85; and each new text end 40.5new text begin FTE trainee at a clinical training site that is an ambulatory, nursing home, or other eligible new text end 40.6new text begin nonhospital setting shall be weighted at the weight in item (ii) multiplied by 1.15; andnew text end 40.7new text begin (iv) grants to hospitals under this item are limited to a percentage share of the total new text end 40.8new text begin pool of funds available under this item that is no more than 1.5 times the percentage of the new text end 40.9new text begin hospital's total revenue that comes from public programs. Grants to hospitals in excess of new text end 40.10new text begin this amount will be redistributed to other sites eligible for funding under this item. Each new text end 40.11new text begin eligible clinical training site's grant under this item will be calculated by multiplying the new text end 40.12new text begin training site's adjusted FTE count upon completion of items (i) to (iv) by the statewide new text end 40.13new text begin average cost per trainee for each provider type to determine an adjusted clinical training new text end 40.14new text begin cost for each site. The grant to each eligible clinical training site under this item shall new text end 40.15new text begin equal that site's share of total adjusted clinical training costs for all eligible training sites new text end 40.16new text begin receiving funding under this item. Any clinical training site with fewer than 0.1 FTE new text end 40.17new text begin eligible trainees from all programs upon completion of items (i) to (iv) and any clinical new text end 40.18new text begin training site that would receive less than a cumulative $1,000 under clauses (1) and (2) new text end 40.19new text begin will be eliminated from the distribution.new text end 40.20new text begin (b) Public program revenue for the distribution formula includes revenue for the new text end 40.21new text begin relevant MERC reporting period from medical assistance, prepaid medical assistance, new text end 40.22new text begin general assistance medical care, MinnesotaCare, and prepaid general assistance medical new text end 40.23new text begin care, as reported to the Department of Health pursuant to sections 144.562, 144.564, new text end 40.24new text begin and 144.695 to 144.703 and Minnesota Rules, chapter 4650, by December 31 of the new text end 40.25new text begin year in which the MERC application is submitted. Training sites that receive no public new text end 40.26new text begin program revenue are ineligible for funds available under this subdivision. For purposes new text end 40.27new text begin of determining training-site level grants to be distributed under paragraph (a), clause new text end 40.28new text begin (2), total statewide average costs per trainee for medical residents is based on audited new text end 40.29new text begin clinical training costs per trainee in primary care clinical medical education programs for new text end 40.30new text begin medical residents. Total statewide average costs per trainee for dental residents is based new text end 40.31new text begin on audited clinical training costs per trainee in clinical medical education programs for new text end 40.32new text begin dental students. Total statewide average costs per trainee for pharmacy residents is based new text end 40.33new text begin on audited clinical training costs per trainee in clinical medical education programs for new text end 40.34new text begin pharmacy students.new text end 41.1    Sec. 7. new text begin [62U.15] ALZHEIMER'S DISEASE; PREVALENCE AND SCREENING new text end 41.2new text begin MEASURES.new text end 41.3    new text begin Subdivision 1.new text end new text begin Data from providers.new text end new text begin (a) By July 1, 2012, the commissioner new text end 41.4new text begin shall review currently available quality measures and make recommendations for future new text end 41.5new text begin measurement aimed at improving assessment and care related to Alzheimer's disease and new text end 41.6new text begin other dementia diagnoses, including improved rates and results of cognitive screening, new text end 41.7new text begin rates of Alzheimer's and other dementia diagnoses, and prescribed care and treatment new text end 41.8new text begin plans.new text end 41.9new text begin (b) The commissioner may contract with a private entity to complete the new text end 41.10new text begin requirements in this subdivision. If the commissioner contracts with a private entity new text end 41.11new text begin already under contract through section 62U.02, then the commissioner may use a sole new text end 41.12new text begin source contract and is exempt from competitive procurement processes.new text end 41.13    new text begin Subd. 2.new text end new text begin Learning collaborative.new text end new text begin By July 1, 2012, the commissioner shall new text end 41.14new text begin develop a health care home learning collaborative curriculum that includes screening and new text end 41.15new text begin education on best practices regarding identification and management of Alzheimer's and new text end 41.16new text begin other dementia patients under section 256B.0751, subdivision 5, for providers, clinics, new text end 41.17new text begin care coordinators, clinic administrators, patient partners and families, and community new text end 41.18new text begin resources including public health.new text end 41.19    new text begin Subd. 3.new text end new text begin Comparison data.new text end new text begin The commissioner, with the commissioner of human new text end 41.20new text begin services, the Minnesota Board on Aging, and other appropriate state offices, shall jointly new text end 41.21new text begin review existing and forthcoming literature in order to estimate differences in the outcomes new text end 41.22new text begin and costs of current practices for caring for those with Alzheimer's disease and other new text end 41.23new text begin dementias, compared to the outcomes and costs resulting from:new text end 41.24new text begin (1) earlier identification of Alzheimer's and other dementias;new text end 41.25new text begin (2) improved support of family caregivers; andnew text end 41.26new text begin (3) improved collaboration between medical care management and community-based new text end 41.27new text begin supports.new text end 41.28    new text begin Subd. 4.new text end new text begin Reporting.new text end new text begin By January 15, 2013, the commissioner must report to the new text end 41.29new text begin legislature on progress toward establishment and collection of quality measures required new text end 41.30new text begin under this section.new text end 41.31    Sec. 8. new text begin [137.395] EDUCATION AND TRAINING FOR HEALTH DISPARITY new text end 41.32new text begin POPULATIONS.new text end 41.33    new text begin Subdivision 1.new text end new text begin Condition.new text end new text begin If the Board of Regents accepts the amount transferred new text end 41.34new text begin under section 62J.692, subdivision 4, paragraph (b), clause (2), then it must be used for the new text end 41.35new text begin purposes provided in this section.new text end 42.1    new text begin Subd. 2.new text end new text begin Purpose.new text end new text begin The Board of Regents, through the Academic Health Center, new text end 42.2new text begin is required to implement a scholarship program in order to increase the number of new text end 42.3new text begin graduates of the Academic Health Center programs who are from racial, ethnic, or cultural new text end 42.4new text begin populations in the state that experience health disparities.new text end 42.5    new text begin Subd. 3.new text end new text begin Scholarships.new text end new text begin The Board of Regents is required to provide full new text end 42.6new text begin scholarships to Academic Health Center programs for students who are from racial, ethnic, new text end 42.7new text begin or cultural populations that experience health disparities. One-third of the scholarship new text end 42.8new text begin funding available under this program must go to students at the University of Minnesota, new text end 42.9new text begin Medical School, Duluth.new text end 42.10    Sec. 9. Minnesota Statutes 2010, section 144.05, is amended by adding a subdivision 42.11to read: 42.12    new text begin Subd. 6.new text end new text begin Elimination of certain provider reporting requirements; sunset of new new text end 42.13new text begin requirements.new text end new text begin (a) Notwithstanding any other law, rule, or provision to the contrary, new text end 42.14new text begin effective July 1, 2012, the commissioner shall cease collecting from health care providers new text end 42.15new text begin and purchasers all reports and data related to health care costs, quality, utilization, access, new text end 42.16new text begin patient encounters, and disease surveillance and public health, and related to provider new text end 42.17new text begin licensure, monitoring, finances, and regulation, unless the reports or data are necessary for new text end 42.18new text begin federal compliance. For purposes of this subdivision, the term "health care providers and new text end 42.19new text begin purchasers" has the meaning provided in section 62J.03, subdivision 8, except that it also new text end 42.20new text begin includes nursing homes, health plan companies as defined in section 62Q.01, subdivision new text end 42.21new text begin 4, and managed care and county-based purchasing plans delivering services under sections new text end 42.22new text begin 256B.69 and 256B.692.new text end 42.23new text begin (b) The commissioner shall present to the 2012 legislature draft legislation to repeal, new text end 42.24new text begin effective July 1, 2012, the provider reporting requirements identified under paragraph (a) new text end 42.25new text begin that are not necessary for federal compliance.new text end 42.26new text begin (c) The commissioner may establish new provider reporting requirements to take new text end 42.27new text begin effect on or after July 1, 2012. These new reporting requirements must sunset five years new text end 42.28new text begin from their effective date, unless they are renewed by the commissioner. All new provider new text end 42.29new text begin reporting requirements and requests for their renewal shall not take effect unless they new text end 42.30new text begin are enacted in state law.new text end 42.31    Sec. 10. Minnesota Statutes 2010, section 144.1499, is amended to read: 42.32144.1499 PROMOTION OF HEALTH CARE AND LONG-TERM CARE 42.33CAREERSnew text begin HEALTH CAREERS OPPORTUNITIES GRANT PROGRAMnew text end . 43.1    new text begin Subdivision. 1.new text end new text begin Program.new text end The commissioner of health, in consultation with 43.2an organization representing health care employers, long-term care employers, and 43.3educational institutions, may make grants to qualifying consortia as defined in section 43.4116L.11, subdivision 4, for intergenerational programs to encourage middle and high 43.5school students to work and volunteer in health care and long-term care settings. 43.6To qualify for a grant under this section, a consortium shall: new text begin health care employers, new text end 43.7new text begin educational institutions, and related organizations for eligible activities intended to new text end 43.8new text begin increase the number of people from racial, ethnic, or cultural populations that experience new text end 43.9new text begin health disparities who are entering health careers in Minnesota.new text end 43.10(1) develop a health and long-term care careers curriculum that provides career 43.11exploration and training in national skill standards for health care and long-term care and 43.12that is consistent with Minnesota graduation standards and other related requirements; 43.13(2) offer programs for high school students that provide training in health and 43.14long-term care careers with credits that articulate into postsecondary programs; and 43.15(3) provide technical support to the participating health care and long-term care 43.16employer to enable the use of the employer's facilities and programs for kindergarten to 43.17grade 12 health and long-term care careers education. 43.18    new text begin Subd. 2.new text end new text begin Eligible activities.new text end new text begin Eligible activities must focus on students from racial, new text end 43.19new text begin ethnic, or cultural populations experiencing health disparities. Eligible activities include new text end 43.20new text begin the following:new text end 43.21new text begin (1) health careers exploration activities for students from racial, ethnic, or cultural new text end 43.22new text begin populations experiencing health disparities;new text end 43.23new text begin (2) elementary, secondary, and postsecondary education activities to improve the new text end 43.24new text begin academic readiness to enter health professions education programs for students from new text end 43.25new text begin racial, ethnic, or cultural populations experiencing health disparities;new text end 43.26new text begin (3) health careers mentoring for students from racial, ethnic, or cultural populations new text end 43.27new text begin experiencing health disparities, including support for faculty involved in mentoring these new text end 43.28new text begin students enrolled in or interested in entering health professions education programs;new text end 43.29new text begin (4) secondary and postsecondary summer health care internships that provide new text end 43.30new text begin students from racial, ethnic, or cultural populations experiencing health disparities with new text end 43.31new text begin formal exposure to a health care profession in an employment setting;new text end 43.32new text begin (5) health careers preparation, guidance, and support for students from racial, ethnic, new text end 43.33new text begin or cultural populations experiencing health disparities who are interested in entering health new text end 43.34new text begin professions education programs;new text end 43.35new text begin (6) health careers preparation, guidance, and support for students from racial, new text end 43.36new text begin ethnic, or cultural populations experiencing health disparities who are enrolled in health new text end 44.1new text begin professions education programs and other activities to improve retention of these students new text end 44.2new text begin in health professions education programs; ornew text end 44.3new text begin (7) other activities the commissioner has reason to believe will prepare, attract, and new text end 44.4new text begin educate for health careers students from racial, ethnic, or cultural populations experiencing new text end 44.5new text begin health disparities.new text end 44.6    new text begin Subd. 3.new text end new text begin Applications.new text end new text begin Applicants seeking a grant must apply to the commissioner. new text end 44.7new text begin Applications must include the following:new text end 44.8new text begin (1) a description of the need, challenges, or barriers that the proposed project will new text end 44.9new text begin address;new text end 44.10new text begin (2) a detailed description of the project and how it proposes to address the challenges new text end 44.11new text begin or barriers;new text end 44.12new text begin (3) a budget detailing all sources of funds for the project and how project funds new text end 44.13new text begin will be used;new text end 44.14new text begin (4) baseline data showing the current percentage of program applicants and current new text end 44.15new text begin students who are from racial, ethnic, or cultural populations experiencing health disparities;new text end 44.16new text begin (5) a description of achievable objectives that demonstrate how the project will new text end 44.17new text begin contribute to increasing the number of students from racial, ethnic, or cultural populations new text end 44.18new text begin experiencing health disparities who are entering health professions in Minnesota;new text end 44.19new text begin (6) a timeline for completion of the project;new text end 44.20new text begin (7) roles and capabilities of responsible individuals and organizations, including new text end 44.21new text begin partner organizations;new text end 44.22new text begin (8) a plan to evaluate project outcomes; and new text end 44.23new text begin (9) other information the commissioner believes necessary to evaluate the new text end 44.24new text begin application.new text end 44.25    new text begin Subd. 4.new text end new text begin Consideration of applications.new text end new text begin The commissioner must review each new text end 44.26new text begin application to determine whether or not the application is complete and whether new text end 44.27new text begin the applicant and the project are eligible for a grant. In evaluating applications, the new text end 44.28new text begin commissioner must evaluate each application based on the following:new text end 44.29new text begin (1) the extent to which the applicant has demonstrated that its project is likely new text end 44.30new text begin to contribute to increasing the number of American Indians and underrepresented new text end 44.31new text begin populations of color entering health professions in Minnesota;new text end 44.32new text begin (2) the application's clarity and thoroughness in describing the challenges and new text end 44.33new text begin barriers it is addressing;new text end 44.34new text begin (3) the extent to which the applicant appears likely to coordinate project efforts new text end 44.35new text begin with other organizations;new text end 44.36new text begin (4) the reasonableness of the project budget; andnew text end 45.1new text begin (5) the organizational capacity of the applicant and its partners.new text end 45.2new text begin The commissioner may also take into account other relevant factors. During new text end 45.3new text begin application review the commissioner may request additional information about a proposed new text end 45.4new text begin project, including information on project cost. Failure to provide the information requested new text end 45.5new text begin disqualifies an applicant.new text end 45.6    new text begin Subd. 5.new text end new text begin Program oversight.new text end new text begin The commissioner shall determine the amount of a new text end 45.7new text begin grant to be given to an eligible applicant based on the relative strength of each eligible new text end 45.8new text begin application and the funds available to the commissioner. The commissioner may collect new text end 45.9new text begin from grantees any information necessary to evaluate the program.new text end 45.10    Sec. 11. Minnesota Statutes 2010, section 144.1501, subdivision 1, is amended to read: 45.11    Subdivision 1. Definitions. (a) For purposes of this section, the following definitions 45.12apply. 45.13(b) "Dentist" means an individual who is licensed to practice dentistry. 45.14(c) "Designated rural area" means: 45.15(1) an area in Minnesota outside the counties of Anoka, Carver, Dakota, Hennepin, 45.16Ramsey, Scott, and Washington, excluding the cities of Duluth, Mankato, Moorhead, 45.17Rochester, and St. Cloud; or 45.18(2) a municipal corporation, as defined under section , that is physically 45.19located, in whole or in part, in an area defined as a designated rural area under clause (1).new text begin new text end 45.20new text begin an area defined as a small rural area or isolated rural area according to the four category new text end 45.21new text begin classifications of the Rural Urban Commuting Area system developed for the United new text end 45.22new text begin States Health Resources and Services Administration.new text end 45.23(d) "Emergency circumstances" means those conditions that make it impossible for 45.24the participant to fulfill the service commitment, including death, total and permanent 45.25disability, or temporary disability lasting more than two years. 45.26(e) "Medical resident" means an individual participating in a medical residency in 45.27family practice, internal medicine, obstetrics and gynecology, pediatrics, or psychiatry. 45.28(f) "Midlevel practitioner" means a nurse practitioner, nurse-midwife, nurse 45.29anesthetist, advanced clinical nurse specialist, or physician assistant. 45.30(g) "Nurse" means an individual who has completed training and received all 45.31licensing or certification necessary to perform duties as a licensed practical nurse or 45.32registered nurse. 45.33(h) "Nurse-midwife" means a registered nurse who has graduated from a program of 45.34study designed to prepare registered nurses for advanced practice as nurse-midwives. 46.1(i) "Nurse practitioner" means a registered nurse who has graduated from a program 46.2of study designed to prepare registered nurses for advanced practice as nurse practitioners. 46.3(j) "Pharmacist" means an individual with a valid license issued under chapter 151. 46.4(k) "Physician" means an individual who is licensed to practice medicine in the areas 46.5of family practice, internal medicine, obstetrics and gynecology, pediatrics, or psychiatry. 46.6(l) "Physician assistant" means a person licensed under chapter 147A. 46.7(m) "Qualified educational loan" means a government, commercial, or foundation 46.8loan for actual costs paid for tuition, reasonable education expenses, and reasonable living 46.9expenses related to the graduate or undergraduate education of a health care professional. 46.10(n) "Underserved urban community" means a Minnesota urban area or population 46.11included in the list of designated primary medical care health professional shortage areas 46.12(HPSAs), medically underserved areas (MUAs), or medically underserved populations 46.13(MUPs) maintained and updated by the United States Department of Health and Human 46.14Services. 46.15    Sec. 12. Minnesota Statutes 2010, section 144.1501, subdivision 4, is amended to read: 46.16    Subd. 4. Loan forgiveness. The commissioner of health may select applicants 46.17each year for participation in the loan forgiveness program, within the limits of available 46.18funding. The commissioner shall distribute available funds for loan forgiveness 46.19proportionally among the eligible professions according to the vacancy rate for each 46.20profession in the required geographic area, facility type, teaching area, patient group, 46.21or specialty type specified in subdivision 2. The commissioner shall allocate funds for 46.22physician loan forgiveness so that 75 percent of the funds available are used for rural 46.23physician loan forgiveness and 25 percent of the funds available are used for underserved 46.24urban communities and pediatric psychiatry loan forgiveness. If the commissioner does 46.25not receive enough qualified applicants each year to use the entire allocation of funds for 46.26any eligible profession, the remaining funds may be allocated proportionally among the 46.27other eligible professions according to the vacancy rate for each profession in the required 46.28geographic area, patient group, or facility type specified in subdivision 2. Applicants are 46.29responsible for securing their own qualified educational loans. The commissioner shall 46.30select participants based on their suitability for practice serving the required geographic 46.31area or facility type specified in subdivision 2, as indicated by experience or training. 46.32The commissioner shall give preference to applicantsnew text begin from racial, ethnic, or cultural new text end 46.33new text begin populations experiencing health disparities who arenew text end closest to completing their trainingnew text begin new text end 46.34new text begin and who agree to serve in settings in Minnesota that provide health care services to at least new text end 46.35new text begin 50 percent American Indian or other populations of color, such as a federally recognized new text end 47.1new text begin Native American reservationnew text end . For each year that a participant meets the service obligation 47.2required under subdivision 3, up to a maximum of four years, the commissioner shall make 47.3annual disbursements directly to the participant equivalent to 15 percent of the average 47.4educational debt for indebted graduates in their profession in the year closest to the 47.5applicant's selection for which information is available, not to exceed the balance of the 47.6participant's qualifying educational loans. Before receiving loan repayment disbursements 47.7and as requested, the participant must complete and return to the commissioner an affidavit 47.8of practice form provided by the commissioner verifying that the participant is practicing 47.9as required under subdivisions 2 and 3. The participant must provide the commissioner 47.10with verification that the full amount of loan repayment disbursement received by the 47.11participant has been applied toward the designated loans. After each disbursement, 47.12verification must be received by the commissioner and approved before the next loan 47.13repayment disbursement is made. Participants who move their practice remain eligible for 47.14loan repayment as long as they practice as required under subdivision 2. 47.15    Sec. 13. new text begin [144.1503] HEALTH PROFESSIONS OPPORTUNITIES new text end 47.16new text begin SCHOLARSHIP PROGRAM.new text end 47.17    new text begin Subdivision 1.new text end new text begin Definitions.new text end new text begin For purposes of this section, the following definitions new text end 47.18new text begin apply: new text end 47.19new text begin (a) "Certified clinical nurse specialist" means an individual licensed in Minnesota as new text end 47.20new text begin a registered nurse and certified by a national nurse certification organization acceptable to new text end 47.21new text begin the Minnesota Board of Nursing to practice as a clinical nurse specialist.new text end 47.22new text begin (b) "Certified nurse midwife" means an individual licensed in Minnesota as a new text end 47.23new text begin registered nurse and certified by a national nurse certification organization acceptable to new text end 47.24new text begin the Minnesota Board of Nursing to practice as a nurse midwife.new text end 47.25new text begin (c) "Certified nurse practitioner" means an individual licensed in Minnesota as a new text end 47.26new text begin registered nurse and certified by a national nurse certification organization acceptable to new text end 47.27new text begin the Minnesota Board of Nursing to practice as a nurse practitioner.new text end 47.28new text begin (d) "Chiropractor" means an individual licensed and regulated under sections 148.02 new text end 47.29new text begin to 148.108.new text end 47.30new text begin (e) "Dental therapist" means an individual licensed in the state and includes new text end 47.31new text begin advanced dental therapists certified under section 150A.106.new text end 47.32new text begin (f) "Dentist" means an individual licensed in Minnesota as a dentist under chapter new text end 47.33new text begin 150A.new text end 47.34new text begin (g) "Eligible scholarship placement site" means a nonprofit, private, or public new text end 47.35new text begin entity located in Minnesota that provides at least 50 percent of its health care services to new text end 48.1new text begin American Indian or other populations of color, such as federally recognized American new text end 48.2new text begin Indian reservations.new text end 48.3new text begin (h) "Emergency circumstances" means those conditions that make it impossible for new text end 48.4new text begin the participant to fulfill the contractual requirements, including death, total and permanent new text end 48.5new text begin disability, or temporary disability lasting more than two years.new text end 48.6new text begin (i) "Participant" means an individual receiving a scholarship under this program.new text end 48.7new text begin (j) "Physician assistant" means a person licensed in Minnesota under chapter 147A.new text end 48.8new text begin (k) "Primary care physician" means an individual licensed in Minnesota as a new text end 48.9new text begin physician and board-certified in family practice, internal medicine, obstetrics and new text end 48.10new text begin gynecology, pediatrics, geriatrics, emergency medicine, hospital medicine, or psychiatry.new text end 48.11new text begin (l) "Registered nurse" means an individual licensed by the Minnesota Board of new text end 48.12new text begin Nursing to practice professional nursing.new text end 48.13    new text begin Subd. 2.new text end new text begin Establishment and purpose.new text end new text begin The commissioner shall establish a health new text end 48.14new text begin professions opportunities scholarship program. The purpose of the program is to increase new text end 48.15new text begin the number of students from racial, ethnic, or cultural populations experiencing health new text end 48.16new text begin disparities who enter health professions.new text end 48.17    new text begin Subd. 3.new text end new text begin Eligible students.new text end new text begin To be eligible to apply to the commissioner for the new text end 48.18new text begin scholarship program, an applicant must be:new text end 48.19new text begin (1) accepted for full-time study in a program of study that will result in licensure as new text end 48.20new text begin a primary care physician, certified nurse practitioner, certified nurse midwife, certified new text end 48.21new text begin clinical nurse specialist, chiropractor, physician assistant, registered nurse, dentist, or new text end 48.22new text begin dental therapist;new text end 48.23new text begin (2) a Minnesota resident; andnew text end 48.24new text begin (3) an individual from a racial, ethnic, or cultural population experiencing health new text end 48.25new text begin disparities in the state.new text end 48.26    new text begin Subd. 4.new text end new text begin Scholarship.new text end new text begin The commissioner may award a scholarship for the cost of new text end 48.27new text begin full tuition, fees, and living expenses up to $40,000 per year to eligible students. The new text end 48.28new text begin commissioner will subtract the amount of other scholarship, grant, and gift awards to the new text end 48.29new text begin participant from the award made by this program. Scholarship awards will be limited to new text end 48.30new text begin the number of years for full-time enrollment in the applicant's program of study but will new text end 48.31new text begin not include any years completed prior to applying. The commissioner shall determine the new text end 48.32new text begin number of new scholarship awards made per fiscal year based on availability of state new text end 48.33new text begin funding. Scholarship awards will be paid by the commissioner directly to the participant's new text end 48.34new text begin educational institution after full-time enrollment is verified. Appropriations made to the new text end 48.35new text begin scholarship program do not cancel and are available until expended.new text end 49.1    new text begin Subd. 5.new text end new text begin Obligated service.new text end new text begin A participant shall agree in contract to fulfill a new text end 49.2new text begin three-year service obligation at an eligible scholar placement site upon completion of new text end 49.3new text begin training, including residency, and obtaining Minnesota licensure. Participants must new text end 49.4new text begin provide at least 32 hours of direct patient care per week for at least 45 weeks per year. new text end 49.5new text begin Obligated service must start by March 31 of the year following completion of required new text end 49.6new text begin training.new text end 49.7    new text begin Subd. 6.new text end new text begin Affidavit of service required.new text end new text begin Before starting a service obligation and new text end 49.8new text begin annually thereafter, participants shall submit to the commissioner an affidavit of practice new text end 49.9new text begin signed by a representative of their eligible scholar placement site verifying employment new text end 49.10new text begin status and the number of weekly hours of direct patient care provided by the participant. new text end 49.11new text begin Participants must also provide written notice to the commissioner within 30 days of:new text end 49.12new text begin (1) a change in name or address;new text end 49.13new text begin (2) a decision not to fulfill a service obligation; ornew text end 49.14new text begin (3) cessation of obligated practice.new text end 49.15    new text begin Subd. 7.new text end new text begin Penalty for nonfulfillment.new text end new text begin If a participant does not complete the new text end 49.16new text begin educational program, successfully obtain licensure, or fulfill the required minimum new text end 49.17new text begin commitment of service according to subdivision 6, the commissioner of health shall collect new text end 49.18new text begin from the participant the total amount awarded to the participant under the scholarship new text end 49.19new text begin program plus interest at a rate established according to section 270C.40. Funds collected new text end 49.20new text begin for nonfulfillment shall be credited to the health professions opportunities scholarship new text end 49.21new text begin program. The commissioner shall allow waivers of all or part of the money owed the new text end 49.22new text begin commissioner as a result of a nonfulfillment penalty due to emergency circumstances.new text end 49.23    Sec. 14. new text begin [144.586] PATIENT SAFETY SURVEY.new text end 49.24new text begin Hospitals licensed under section 144.55 must submit necessary information to the new text end 49.25new text begin Leapfrog Group patient safety survey on an annual basis in order to publicly report patient new text end 49.26new text begin safety information and track the progress of each hospital to improve quality, safety, new text end 49.27new text begin and efficiency of care delivery.new text end 49.28    Sec. 15. Minnesota Statutes 2010, section 144.98, subdivision 2a, is amended to read: 49.29    Subd. 2a. Standards. new text begin Notwithstanding the exemptions in subdivisions 8 and 9, new text end the 49.30commissioner shall accredit laboratories according to the most current environmental 49.31laboratory accreditation standards under subdivision 1 and as accepted by the accreditation 49.32bodies recognized by the National Environmental Laboratory Accreditation Program 49.33(NELAP) of the NELAC Institute. 50.1    Sec. 16. Minnesota Statutes 2010, section 144.98, subdivision 7, is amended to read: 50.2    Subd. 7. Initial accreditation and annual accreditation renewal. (a) The 50.3commissioner shall issue or renew accreditation after receipt of the completed application 50.4and documentation required in this section, provided the laboratory maintains compliance 50.5with the standards specified in subdivision 2anew text begin , notwithstanding any exemptions under new text end 50.6new text begin subdivisions 8 and 9new text end , and attests to the compliance on the application form. 50.7(b) The commissioner shall prorate the fees in subdivision 3 for laboratories 50.8applying for accreditation after December 31. The fees are prorated on a quarterly basis 50.9beginning with the quarter in which the commissioner receives the completed application 50.10from the laboratory. 50.11(c) Applications for renewal of accreditation must be received by November 1 and 50.12no earlier than October 1 of each year. The commissioner shall send annual renewal 50.13notices to laboratories 90 days before expiration. Failure to receive a renewal notice does 50.14not exempt laboratories from meeting the annual November 1 renewal date. 50.15(d) The commissioner shall issue all accreditations for the calendar year for which 50.16the application is made, and the accreditation shall expire on December 31 of that year. 50.17(e) The accreditation of any laboratory that fails to submit a renewal application 50.18and fees to the commissioner expires automatically on December 31 without notice or 50.19further proceeding. Any person who operates a laboratory as accredited after expiration of 50.20accreditation or without having submitted an application and paid the fees is in violation 50.21of the provisions of this section and is subject to enforcement action under sections 50.22144.989 to 144.993, the Health Enforcement Consolidation Act. A laboratory with expired 50.23accreditation may reapply under subdivision 6. 50.24    Sec. 17. Minnesota Statutes 2010, section 144.98, is amended by adding a subdivision 50.25to read: 50.26    new text begin Subd. 8.new text end new text begin Exemption from national standards for quality control and personnel new text end 50.27new text begin requirements.new text end new text begin Effective January 1, 2012, a laboratory that analyzes samples for new text end 50.28new text begin compliance with a permit issued under section 115.03, subdivision 5, may request new text end 50.29new text begin exemption from the personnel requirements and specific quality control provisions for new text end 50.30new text begin microbiology and chemistry stated in the national standards as incorporated by reference new text end 50.31new text begin in subdivision 2a. The commissioner shall grant the exemption if the laboratory:new text end 50.32new text begin (1) complies with the methodology and quality control requirements, where new text end 50.33new text begin available, in the most recent, approved edition of the Standard Methods for the new text end 50.34new text begin Examination of Water and Wastewater as published by the Water Environment Federation; new text end 50.35new text begin andnew text end 51.1new text begin (2) supplies the name of the person meeting the requirements in section 115.73, or new text end 51.2new text begin the personnel requirements in the national standard pursuant to subdivision 2a.new text end 51.3new text begin A laboratory applying for this exemption shall not apply for simultaneous new text end 51.4new text begin accreditation under the national standard.new text end 51.5    Sec. 18. Minnesota Statutes 2010, section 144.98, is amended by adding a subdivision 51.6to read: 51.7    new text begin Subd. 9.new text end new text begin Exemption from national standards for proficiency testing frequency.new text end 51.8new text begin (a) Effective January 1, 2012, a laboratory applying for or requesting accreditation under new text end 51.9new text begin the exemption in subdivision 8 must obtain an acceptable proficiency test result for each new text end 51.10new text begin of the laboratory's accredited or requested fields of testing. The laboratory must analyze new text end 51.11new text begin proficiency samples selected from one of two annual proficiency testing studies scheduled new text end 51.12new text begin by the commissioner.new text end 51.13new text begin (b) If a laboratory fails to successfully complete the first scheduled proficiency new text end 51.14new text begin study, the laboratory shall:new text end 51.15new text begin (1) obtain and analyze a supplemental test sample within 15 days of receiving the new text end 51.16new text begin test report for the initial failed attempt; andnew text end 51.17new text begin (2) participate in the second annual study as scheduled by the commissioner.new text end 51.18new text begin (c) If a laboratory does not submit results or fails two consecutive proficiency new text end 51.19new text begin samples, the commissioner will revoke the laboratory's accreditation for the affected new text end 51.20new text begin fields of testing.new text end 51.21new text begin (d) The commissioner may require a laboratory to analyze additional proficiency new text end 51.22new text begin testing samples beyond what is required in this subdivision if information available to new text end 51.23new text begin the commissioner indicates that the laboratory's analysis for the field of testing does not new text end 51.24new text begin meet the requirements for accreditation.new text end 51.25new text begin (e) The commissioner may collect from laboratories accredited under the exemption new text end 51.26new text begin in subdivision 8 any additional costs required to administer this subdivision and new text end 51.27new text begin subdivision 8.new text end 51.28    Sec. 19. Minnesota Statutes 2010, section 144A.102, is amended to read: 51.29144A.102 WAIVER FROM FEDERAL RULES AND REGULATIONS; 51.30PENALTIES. 51.31new text begin (a) new text end By January 2000, the commissioner of health shall work with providers to 51.32examine state and federal rules and regulations governing the provision of care in licensed 51.33nursing facilities and apply for federal waivers and identify necessary changes in state 51.34law to: 52.1(1) allow the use of civil money penalties imposed upon nursing facilities to abate 52.2any deficiencies identified in a nursing facility's plan of correction; and 52.3(2) stop the accrual of any fine imposed by the Health Department when a follow-up 52.4inspection survey is not conducted by the department within the regulatory deadline. 52.5new text begin (b) By January 2012, the commissioner of health shall work with providers to new text end 52.6new text begin examine state and federal rules and regulations governing the provision of care in licensed new text end 52.7new text begin nursing facilities and apply for federal waivers and identify necessary changes in state new text end 52.8new text begin law to:new text end 52.9new text begin (1) eliminate the requirement for written plans of correction from nursing homes for new text end 52.10new text begin federal deficiencies issued at a scope and severity that is not widespread or in immediate new text end 52.11new text begin jeopardy; andnew text end 52.12new text begin (2) issue the federal survey form electronically to nursing homes.new text end 52.13new text begin The commissioner shall issue a report to the legislative chairs of the committees new text end 52.14new text begin with jurisdiction over health and human services by January 31, 2012, on the status of new text end 52.15new text begin implementation of this paragraph.new text end 52.16    Sec. 20. Minnesota Statutes 2010, section 144A.61, is amended by adding a 52.17subdivision to read: 52.18    new text begin Subd. 9.new text end new text begin Electronic transmission.new text end new text begin The commissioner of health must accept new text end 52.19new text begin electronic transmission of applications and supporting documentation for interstate new text end 52.20new text begin endorsement for the nursing assistant registry.new text end 52.21    Sec. 21. Minnesota Statutes 2010, section 144E.123, is amended to read: 52.22144E.123 PREHOSPITAL CARE DATA. 52.23    Subdivision 1. Collection and maintenance. new text begin Until July 1, 2014, new text end a licensee shallnew text begin new text end 52.24new text begin maynew text end collect and provide prehospital care data to the board in a manner prescribed by the 52.25board. At a minimum, the data must include items identified by the board that are part of 52.26the National Uniform Emergency Medical Services Data Set. A licensee shall maintain 52.27prehospital care data for every response. 52.28    Subd. 2. Copy to receiving hospital. If a patient is transported to a hospital, a copy 52.29of the ambulance report delineating prehospital medical care given shall be provided 52.30to the receiving hospital. 52.31    Subd. 3. Review. Prehospital care data may be reviewed by the board or its 52.32designees. The data shall be classified as private data on individuals under chapter 13, the 52.33Minnesota Government Data Practices Act. 53.1    Subd. 4. Penalty. Failure to report all information required by the board under this 53.2section shall constitute grounds for license revocation. 53.3    new text begin Subd. 5.new text end new text begin Working group.new text end new text begin By October 1, 2011, the board must convene a working new text end 53.4new text begin group composed of six members, three of which must be appointed by the board and three new text end 53.5new text begin of which must be appointed by the Minnesota Ambulance Association, to redesign the new text end 53.6new text begin board's policies related to collection of data from licenses. The issues to be considered new text end 53.7new text begin include, but are not limited to, the following: user-friendly reporting requirements; data new text end 53.8new text begin sets; improved accuracy of reported information; appropriate use of information gathered new text end 53.9new text begin through the reporting system; and methods for minimizing the financial impact of data new text end 53.10new text begin reporting on licenses, particularly for rural volunteer services. The working group must new text end 53.11new text begin report its findings and recommendations to the board no later than January 1, 2014.new text end 53.12new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end 53.13    Sec. 22. new text begin [145.9271] WHITE EARTH BAND URBAN CLINIC.new text end 53.14    new text begin Subdivision 1.new text end new text begin Condition.new text end new text begin If the White Earth Band of Ojibwe Indians accepts the new text end 53.15new text begin amount transferred under section 62J.692, subdivision 4, paragraph (b), clause (1), then it new text end 53.16new text begin must use the funds for purposes of this section.new text end 53.17    new text begin Subd. 2.new text end new text begin Establish urban clinic.new text end new text begin The White Earth Band of Ojibwe Indians shall new text end 53.18new text begin establish and operate one or more health care clinics in the Minneapolis area or greater new text end 53.19new text begin Minnesota to serve members of the White Earth Tribe and may use funds received under new text end 53.20new text begin section 62J.692, subdivision 4, paragraph (b), clause (1), for application to qualify as a new text end 53.21new text begin federally qualified health center.new text end 53.22    new text begin Subd. 3.new text end new text begin Grant agreements.new text end new text begin Before receiving the funds to be transferred under new text end 53.23new text begin section 62J.692, subdivision 4, paragraph (b), clause (1), the White Earth Band of Ojibwe new text end 53.24new text begin Indians is requested to submit to the commissioner of health a work plan and budget that new text end 53.25new text begin describes its annual plan for the funds. The commissioner will incorporate the work new text end 53.26new text begin plan and budget into a grant agreement between the commissioner and the White Earth new text end 53.27new text begin Band of Ojibwe Indians. Before each successive disbursement, the White Earth Band of new text end 53.28new text begin Ojibwe Indians is requested to submit a narrative progress report and an expenditure new text end 53.29new text begin report to the commissioner.new text end 53.30    Sec. 23. new text begin [145.9272] COMMUNITY MENTAL HEALTH CENTER GRANTS.new text end 53.31    new text begin Subdivision 1.new text end new text begin Definitions.new text end new text begin For purposes of this section, "community mental new text end 53.32new text begin health center" means an entity that is eligible for payment under section 256B.0625, new text end 53.33new text begin subdivision 5.new text end 54.1    new text begin Subd. 2.new text end new text begin Allocation of subsidies.new text end new text begin The commissioner of health shall distribute, from new text end 54.2new text begin money appropriated for this purpose, grants to community mental health centers operating new text end 54.3new text begin in the state on July 1 of the year 2011 and each subsequent year for community mental new text end 54.4new text begin health center services to low-income consumers and patients with mental illness. The new text end 54.5new text begin amount of each grant shall be in proportion to each community mental health center's new text end 54.6new text begin revenues received from state health care programs in the most recent calendar year for new text end 54.7new text begin which data is available.new text end 54.8    Sec. 24. Minnesota Statutes 2010, section 145.928, subdivision 2, is amended to read: 54.9    Subd. 2. State-community partnerships; plan. The commissioner, in partnership 54.10with culturally based community organizations; the Indian Affairs Council under section 54.113.922 ; the Council on Affairs of Chicano/Latino People under section 3.9223; the Council 54.12on Black Minnesotans under section 3.9225; the Council on Asian-Pacific Minnesotans 54.13under section 3.9226; new text begin the Alliance for Racial and Cultural Health Equity; new text end community 54.14health boards as defined in section 145A.02; and tribal governments, shall develop and 54.15implement a comprehensive, coordinated plan to reduce health disparities in the health 54.16disparity priority areas identified in subdivision 1. 54.17    Sec. 25. new text begin [145.929] PROFESSIONALS FROM POPULATIONS WITH HEALTH new text end 54.18new text begin DISPARITIES.new text end 54.19new text begin The commissioner of health shall survey the diversity of the work force for new text end 54.20new text begin health-related professions and compare proportions in the allied health professions new text end 54.21new text begin among populations experiencing health disparities, including cultural, racial, ethnic, new text end 54.22new text begin and geographic factors, compared to the population of the state. Based on this survey, new text end 54.23new text begin the commissioner shall determine on an annual basis the ratio of training and residency new text end 54.24new text begin positions needed versus those available based on funding capacity.new text end 54.25    Sec. 26. Minnesota Statutes 2010, section 145.986, is amended by adding a subdivision 54.26to read: 54.27    new text begin Subd. 7.new text end new text begin Consultation and engagement of consumers and communities with new text end 54.28new text begin poorer health and outcomes.new text end new text begin Communities who receive state and federal health new text end 54.29new text begin grants must demonstrate to the commissioner that the applicant or grantee consulted new text end 54.30new text begin with and engaged local consumers, community organizations, and leaders representing new text end 54.31new text begin the subgroups of the community that experience the greatest health disparities in the new text end 54.32new text begin development of the local plan and that the plan incorporates components and activities new text end 54.33new text begin that reflect the needs and preferences of these communities. The plan must also include new text end 55.1new text begin a process for ongoing consultation and engagement of these consumers, community new text end 55.2new text begin organizations, and leaders in the implementation of the plan and activities funded by new text end 55.3new text begin state grants.new text end 55.4    Sec. 27. Minnesota Statutes 2010, section 145.986, is amended by adding a subdivision 55.5to read: 55.6    new text begin Subd. 8.new text end new text begin Coordination with payment reform demonstration projects.new text end new text begin A new text end 55.7new text begin community who received a health improvement plan grant under this section and new text end 55.8new text begin a payment reform demonstration project authorized under section 256B.0755 shall new text end 55.9new text begin coordinate activities to improve the health of the communities and patients served by both new text end 55.10new text begin the health improvement plan and the demonstration project provider.new text end 55.11    Sec. 28. new text begin [145.987] COMMUNITY HEALTH CENTERS DEVELOPMENT new text end 55.12new text begin GRANTS FOR UNDERSERVED COMMUNITIES.new text end 55.13new text begin (a) The commissioner of health shall award grants from money appropriated for this new text end 55.14new text begin purpose to expand community health centers, as defined in section 145.9269, subdivision new text end 55.15new text begin 1, in the state through the establishment of new community health centers or sites in new text end 55.16new text begin areas defined as small rural areas or isolated rural areas according to the four category new text end 55.17new text begin classification of the Rural Urban Commuting Area system developed for the United States new text end 55.18new text begin Health Resources and Services Administration or serving underserved patient populations new text end 55.19new text begin who experience the greatest disparities in health outcomes.new text end 55.20new text begin (b) Grant funds may be used to pay for:new text end 55.21new text begin (1) costs for an organization to develop and submit a proposal to the federal new text end 55.22new text begin government for the designation of a new community health center or site;new text end 55.23new text begin (2) costs of engaging underserved communities, health care providers, local new text end 55.24new text begin government agencies, or businesses in a process of developing a plan for a new center or new text end 55.25new text begin site to serve people in that community; andnew text end 55.26new text begin (3) costs of planning, designing, remodeling, constructing, or purchasing equipment new text end 55.27new text begin for a new center or site.new text end 55.28new text begin Funds may not be used for operating costs.new text end 55.29new text begin (d) A proposal must demonstrate that racial and ethnic communities to be served by new text end 55.30new text begin the community health center were consulted with and participated in the development of new text end 55.31new text begin the proposal.new text end 55.32new text begin (e) The commissioner shall award grants on a competitive basis based on the new text end 55.33new text begin following criteria: new text end 55.34new text begin (1) the unmet need in the underserved community;new text end 56.1new text begin (2) the degree of disparities in health outcomes in the underserved community; andnew text end 56.2new text begin (3) the extent to which people from the underserved community participated in new text end 56.3new text begin the development of the proposal.new text end 56.4    Sec. 29. Minnesota Statutes 2010, section 145A.17, subdivision 3, is amended to read: 56.5    Subd. 3. Requirements for programs; process. (a) Community health boards 56.6and tribal governments that receive funding under this section must submit a plan to 56.7the commissioner describing a multidisciplinary approach to targeted home visiting for 56.8families. The plan must be submitted on forms provided by the commissioner. At a 56.9minimum, the plan must include the following: 56.10    (1) a description of outreach strategies to families prenatally or at birth; 56.11    (2) provisions for the seamless delivery of health, safety, and early learning services; 56.12    (3) methods to promote continuity of services when families move within the state; 56.13    (4) a description of the community demographics; 56.14    (5) a plan for meeting outcome measures; and 56.15    (6) a proposed work plan that includes: 56.16    (i) coordination to ensure nonduplication of services for children and families; 56.17    (ii) a description of the strategies to ensure that children and families at greatest risk 56.18receive appropriate services; and 56.19    (iii) collaboration with multidisciplinary partners including public health, 56.20ECFE, Head Start, community health workers, social workers, community home 56.21visiting programs, school districts, and other relevant partners. Letters of intent from 56.22multidisciplinary partners must be submitted with the plan. 56.23    (b) Each program that receives funds must accomplish the following program 56.24requirements: 56.25    (1) use a community-based strategy to provide preventive and early intervention 56.26home visiting services; 56.27    (2) offer a home visit by a trained home visitor. If a home visit is accepted, the first 56.28home visit must occur prenatally or as soon after birth as possible and must include a 56.29public health nursing assessment by a public health nurse; 56.30    (3) offer, at a minimum, information on infant care, child growth and development, 56.31positive parenting, preventing diseases, preventing exposure to environmental hazards, 56.32and support services available in the community; 56.33    (4) provide information on and referrals to health care services, if needed, including 56.34information on and assistance in applying for health care coverage for which the child or 57.1family may be eligible; and provide information on preventive services, developmental 57.2assessments, and the availability of public assistance programs as appropriate; 57.3    (5) provide youth development programs when appropriate; 57.4    (6) recruit home visitors who will represent, to the extent possible, the races, 57.5cultures, and languages spoken by families that may be served; 57.6    (7) train and supervise home visitors in accordance with the requirements established 57.7under subdivision 4; 57.8    (8) maximize resources and minimize duplication by coordinating or contracting 57.9with local social and human services organizations, education organizations, and other 57.10appropriate governmental entities and community-based organizations and agencies; 57.11    (9) utilize appropriate racial and ethnic approaches to providing home visiting 57.12services; and 57.13    (10) connect eligible families, as needed, to additional resources available in the 57.14community, including, but not limited to, early care and education programs, health or 57.15mental health services, family literacy programs, employment agencies, social services, 57.16and child care resources and referral agencies. 57.17    (c) When available, programs that receive funds under this section must offer or 57.18provide the family with a referral to center-based or group meetings that meet at least 57.19once per month for those families identified with additional needs. The meetings must 57.20focus on further enhancing the information, activities, and skill-building addressed during 57.21home visitation; offering opportunities for parents to meet with and support each other; 57.22and offering infants and toddlers a safe, nurturing, and stimulating environment for 57.23socialization and supervised play with qualified teachers. 57.24    (d) Funds available under this section shall not be used for medical services. The 57.25commissioner shall establish an administrative cost limit for recipients of funds. The 57.26outcome measures established under subdivision 6 must be specified to recipients of 57.27funds at the time the funds are distributed. 57.28    (e) Data collected on individuals served by the home visiting programs must remain 57.29confidential and must not be disclosed by providers of home visiting services without a 57.30specific informed written consent that identifies disclosures to be made. Upon request, 57.31agencies providing home visiting services must provide recipients with information on 57.32disclosures, including the names of entities and individuals receiving the information and 57.33the general purpose of the disclosure. Prospective and current recipients of home visiting 57.34services must be told and informed in writing that written consent for disclosure of data is 57.35not required for access to home visiting services. 58.1new text begin (f) Upon initial contact with a family, programs that receive funding under this new text end 58.2new text begin section must request permission from the family to share with other family service new text end 58.3new text begin providers information about services the family is receiving and unmet needs of the family new text end 58.4new text begin in order to select a lead agency for the family and coordinate available resources. For new text end 58.5new text begin purposes of this paragraph, the term "family service providers" includes local public new text end 58.6new text begin health, social services, school districts, Head Start programs, health care providers, and new text end 58.7new text begin other public agencies.new text end 58.8    Sec. 30. Minnesota Statutes 2010, section 157.15, is amended by adding a subdivision 58.9to read: 58.10    new text begin Subd. 7a.new text end new text begin Limited food establishment.new text end new text begin "Limited food establishment" means a food new text end 58.11new text begin and beverage service establishment that primarily provides beverages that consist of new text end 58.12new text begin combining dry mixes and water or ice for immediate service to the consumer. Limited new text end 58.13new text begin food establishments must use equipment and utensils that are nontoxic, durable, and retain new text end 58.14new text begin their characteristic qualities under normal use conditions and may request a variance for new text end 58.15new text begin plumbing requirements from the commissioner.new text end 58.16    Sec. 31. Minnesota Statutes 2010, section 297F.10, subdivision 1, is amended to read: 58.17    Subdivision 1. Tax and use tax on cigarettes. Revenue received from cigarette 58.18taxes, as well as related penalties, interest, license fees, and miscellaneous sources of 58.19revenue shall be deposited by the commissioner in the state treasury and credited as 58.20follows: 58.21(1) $22,220,000 for fiscal year 2006 and $22,250,000 for fiscal year 2007 and each 58.22year thereafter must be credited to the Academic Health Center special revenue fund 58.23hereby created and is annually appropriated to the Board of Regents at the University of 58.24Minnesota for Academic Health Center funding at the University of Minnesota; and 58.25(2) $8,553,000 for fiscal year 2006 andnew text begin ,new text end $8,550,000 for fiscal year 2007 andnew text begin , new text end 58.26new text begin $8,337,000 for fiscal year 2012, and $6,781,000new text end each year thereafter must be credited to 58.27the medical education and research costs account hereby created in the special revenue 58.28fund and is annually appropriated to the commissioner of health for distribution under 58.29section 62J.692, subdivision 4new text begin or 11, as appropriatenew text end ; and 58.30(3) the balance of the revenues derived from taxes, penalties, and interest (under 58.31this chapter) and from license fees and miscellaneous sources of revenue shall be credited 58.32to the general fund. 58.33    Sec. 32. new text begin TRANSFER OF HEALTH QUALITY DATA COLLECTION.new text end 59.1    new text begin Subdivision 1.new text end new text begin Transfer.new text end new text begin The duties and activities of the commissioner of new text end 59.2new text begin health conducted pursuant to Minnesota Statutes, chapter 62U, are transferred to the new text end 59.3new text begin commissioner of human services.new text end 59.4    new text begin Subd. 2.new text end new text begin Effect of transfer.new text end new text begin Minnesota Statutes, section 15.039 applies to the new text end 59.5new text begin transfer required in subdivision 1.new text end 59.6    new text begin Subd. 3.new text end new text begin Effective date.new text end new text begin The transfer required in subdivision 1 is effective July 1, new text end 59.7new text begin 2011.new text end 59.8    new text begin Subd. 4.new text end new text begin Suspended data collection.new text end new text begin Data collection under Minnesota Statutes, new text end 59.9new text begin section 62U.04, subdivision 4, is suspended, effective July 1, 2011.new text end 59.10    new text begin Subd. 5.new text end new text begin Commissioner of human services.new text end new text begin (a) During the 2012 legislative session, new text end 59.11new text begin the commissioner of human services, in consultation with the revisor of statutes, shall new text end 59.12new text begin submit to the legislature a bill making all statutory changes required by the reorganization new text end 59.13new text begin required under subdivision 1.new text end 59.14new text begin (b) By July 1, 2013, the commissioner must make recommendations to the legislature new text end 59.15new text begin for collection of encounter data for state health care programs, including SEGIP, through a new text end 59.16new text begin mechanism that allows a third-party contractor to capture data as it is transmitted through new text end 59.17new text begin existing claims processing mechanisms.new text end 59.18    Sec. 33. new text begin PATIENT AND COMMUNITY ENGAGEMENT IN PAYMENT new text end 59.19new text begin REFORM AND HEALTH CARE PROGRAM REFORMS.new text end 59.20    new text begin Subdivision 1.new text end new text begin Implementation of data system improvements.new text end new text begin The commissioners new text end 59.21new text begin of health and human services shall implement the recommendations regarding data on new text end 59.22new text begin health disparities that were contained in the report prepared under Laws 2010, First new text end 59.23new text begin Special Session chapter 1, article 19, section 23, in consultation with an advisory work new text end 59.24new text begin group representing racial and ethnic groups and representatives of government and private new text end 59.25new text begin sector health care organizations. Among other activities, the commissioners shall:new text end 59.26new text begin (1) continue engagement with diverse communities on collection of and access to new text end 59.27new text begin racial and ethnic data from state agencies, health care providers, and health plans;new text end 59.28new text begin (2) develop a plan to make data more accessible to communities;new text end 59.29new text begin (3) develop consistent data elements across programs when feasible; andnew text end 59.30new text begin (4) develop consistent policies on data sampling.new text end 59.31    new text begin Subd. 2.new text end new text begin Patient and community engagement.new text end new text begin The commissioner of health, in new text end 59.32new text begin cooperation with the commissioners of human services and commerce, shall consult with new text end 59.33new text begin an advisory committee representing racial and ethnic groups regarding the implementation new text end 59.34new text begin of subdivision 1 and major agency activities related to state and federal health care reform, new text end 59.35new text begin payment reform demonstration projects, state health care program reforms, improvements new text end 60.1new text begin in quality and patient satisfaction measures, and major changes in state public health new text end 60.2new text begin priorities and strategies. At the request of the advisory committee established under Laws new text end 60.3new text begin 2010, First Special Session chapter 1, article 19, section 23, the commissioner shall new text end 60.4new text begin designate a private sector organization of multiple racial and ethnic groups to serve as the new text end 60.5new text begin advisory committee under this subdivision.new text end 60.6    Sec. 34. new text begin EVALUATION OF HEALTH AND HUMAN SERVICES REGULATORY new text end 60.7new text begin RESPONSIBILITIES.new text end 60.8new text begin (a) The commissioner of health, in consultation with the commissioner of human new text end 60.9new text begin services, shall evaluate and recommend options for reorganizing health and human new text end 60.10new text begin services regulatory responsibilities in both agencies to provide better efficiency and new text end 60.11new text begin operational cost savings while maintaining the protection of the health, safety, and welfare new text end 60.12new text begin of the public. Regulatory responsibilities that are to be evaluated are those found in new text end 60.13new text begin Minnesota Statutes, chapters 62D, 62N, 62R, 62T, 144A, 144D, 144G, 146A, 146B, new text end 60.14new text begin 149A, 153A, 245A, 245B, and 245C, and sections 62Q.19, 144.058, 144.0722, 144.50, new text end 60.15new text begin 144.651, 148.511, 148.6401, 148.995, 256B.692, 626.556, and 626.557.new text end 60.16new text begin (b) The evaluation and recommendations shall be submitted in a report to the new text end 60.17new text begin legislative committees with jurisdiction over health and human services no later than new text end 60.18new text begin February 15, 2012, and shall include, at a minimum, the following:new text end 60.19new text begin (1) whether the regulatory responsibilities of each agency should be combined into new text end 60.20new text begin a separate agency;new text end 60.21new text begin (2) whether the regulatory responsibilities of each agency should be merged into new text end 60.22new text begin an existing agency;new text end 60.23new text begin (3) what cost savings would result by merging the activities regardless of where new text end 60.24new text begin they are located;new text end 60.25new text begin (4) what additional costs would result if the activities were merged;new text end 60.26new text begin (5) whether there are additional regulatory responsibilities in both agencies that new text end 60.27new text begin should be considered in any reorganization; andnew text end 60.28new text begin (6) for each option recommended, projected cost and a timetable and identification new text end 60.29new text begin of the necessary steps and requirements for a successful transition period.new text end 60.30    Sec. 35. new text begin TRANSFER OF THE HEALTH ECONOMICS PROGRAM.new text end 60.31    new text begin Subdivision 1.new text end new text begin Transfer.new text end new text begin The duties and activities of the health economics program new text end 60.32new text begin at the Minnesota Department of Health conducted pursuant to Minnesota Statutes, chapter new text end 60.33new text begin 62J, are transferred to the commissioner of commerce.new text end 61.1    new text begin Subd. 2.new text end new text begin Effect of transfer.new text end new text begin Minnesota Statutes, section 15.039, applies to the new text end 61.2new text begin transfer required in subdivision 1.new text end 61.3    new text begin Subd. 3.new text end new text begin Commissioner of commerce.new text end new text begin During the 2012 legislative session, the new text end 61.4new text begin commissioner of commerce, in consultation with the revisor of statutes, shall submit to new text end 61.5new text begin the legislature a bill making all statutory changes required by the reorganization required new text end 61.6new text begin under subdivision 1.new text end 61.7    new text begin Subd. 4.new text end new text begin Effective date.new text end new text begin The transfer required in subdivision 1 is effective July 1, new text end 61.8new text begin 2011.new text end 61.9    Sec. 36. new text begin STUDY OF FOR-PROFIT HEALTH MAINTENANCE new text end 61.10new text begin ORGANIZATIONS.new text end 61.11new text begin The commissioner of health shall contract with an entity with expertise in health new text end 61.12new text begin economics and health care delivery and quality to study the efficiency, costs, service new text end 61.13new text begin quality, and enrollee satisfaction of for-profit health maintenance organizations, relative to new text end 61.14new text begin not-for-profit health maintenance organizations operating in Minnesota and other states. new text end 61.15new text begin The study findings must address whether the state of Minnesota could: (1) reduce medical new text end 61.16new text begin assistance and MinnesotaCare costs and costs of providing coverage to state employees; new text end 61.17new text begin and (2) maintain or improve the quality of care provided to state health care program new text end 61.18new text begin enrollees and state employees if for-profit health maintenance organizations were allowed new text end 61.19new text begin to operate in the state. The commissioner shall require the entity under contract to report new text end 61.20new text begin study findings to the commissioner and the legislature by January 15, 2012.new text end 61.21    Sec. 37. new text begin MINNESOTA TASK FORCE ON PREMATURITY.new text end 61.22    new text begin Subdivision 1.new text end new text begin Establishment.new text end new text begin The Minnesota Task Force on Prematurity is new text end 61.23new text begin established to evaluate and make recommendations on methods for reducing prematurity new text end 61.24new text begin and improving premature infant health care in the state.new text end 61.25    new text begin Subd. 2.new text end new text begin Membership; meetings; staff.new text end new text begin (a) The task force shall be composed of at new text end 61.26new text begin least the following members, who serve at the pleasure of their appointing authority:new text end 61.27new text begin (1) 15 representatives of the Minnesota Prematurity Coalition including, but not new text end 61.28new text begin limited to, health care providers who treat pregnant women or neonates, organizations new text end 61.29new text begin focused on preterm births, early childhood education and development professionals, and new text end 61.30new text begin families affected by prematurity;new text end 61.31new text begin (2) one representative appointed by the commissioner of human services;new text end 61.32new text begin (3) two representatives appointed by the commissioner of health;new text end 61.33new text begin (4) one representative appointed by the commissioner of education; new text end 62.1new text begin (5) two members of the house of representatives, one appointed by the speaker of new text end 62.2new text begin the house and one appointed by the minority leader; andnew text end 62.3new text begin (6) two members of the senate, appointed according to the rules of the senate.new text end 62.4new text begin (b) Members of the task force serve without compensation or payment of expenses.new text end 62.5new text begin (c) The commissioner of health must convene the first meeting of the Minnesota new text end 62.6new text begin Task Force on Prematurity by July 31, 2011. The task force must continue to meet at new text end 62.7new text begin least quarterly. Staffing and technical assistance shall be provided by the Minnesota new text end 62.8new text begin Perinatal Coalition.new text end 62.9    new text begin Subd. 3.new text end new text begin Duties.new text end new text begin The task force must report the current state of prematurity in new text end 62.10new text begin Minnesota and develop recommendations on strategies for reducing prematurity and new text end 62.11new text begin improving premature infant health care in the state by considering the following:new text end 62.12new text begin (1) standards of care for premature infants born less than 37 weeks gestational age, new text end 62.13new text begin including recommendations to improve hospital discharge and follow-up care procedures;new text end 62.14new text begin (2) coordination of information among appropriate professional and advocacy new text end 62.15new text begin organizations on measures to improve health care for infants born prematurely;new text end 62.16new text begin (3) identification and centralization of available resources to improve access and new text end 62.17new text begin awareness for caregivers of premature infants;new text end 62.18new text begin (4) development and dissemination of evidence-based practices through networking new text end 62.19new text begin and educational opportunities; new text end 62.20new text begin (5) a review of relevant evidence-based research regarding the causes and effects of new text end 62.21new text begin premature births in Minnesota;new text end 62.22new text begin (6) a review of relevant evidence-based research regarding premature infant health new text end 62.23new text begin care, including methods for improving quality of and access to care for premature infants; new text end 62.24new text begin andnew text end 62.25new text begin (7) identification of gaps in public reporting measures and possible effects of these new text end 62.26new text begin measures on prematurity rates.new text end 62.27    new text begin Subd. 4.new text end new text begin Report; expiration.new text end new text begin (a) By November 30, 2011, the task force must submit new text end 62.28new text begin a report on the current state of prematurity in Minnesota to the chairs of the legislative new text end 62.29new text begin policy committees on health and human services.new text end 62.30new text begin (b) By January 15, 2013, the task force must report its final recommendations, new text end 62.31new text begin including any draft legislation necessary for implementation, to the chairs of the legislative new text end 62.32new text begin policy committees on health and human services.new text end 62.33new text begin (c) This task force expires on January 31, 2013, or upon submission of the final new text end 62.34new text begin report required in paragraph (b), whichever is earlier.new text end 62.35    Sec. 38. new text begin NURSING HOME REGULATORY EFFICIENCY.new text end 63.1new text begin The commissioner of health shall work with stakeholders to review, develop, new text end 63.2new text begin implement, and recommend legislative changes in the nursing home licensure process that new text end 63.3new text begin address efficiency, eliminate duplication, and ensure positive resident clinical outcomes. new text end 63.4new text begin The commissioner shall ensure that the changes are cost-neutral.new text end 63.5    Sec. 39. new text begin REPEALER.new text end 63.6new text begin (a)new text end new text begin Minnesota Statutes 2010, sections 62J.17, subdivisions 1, 3, 5a, 6a, and 8; new text end 63.7new text begin 62J.321, subdivision 5a; 62J.381; 62J.41, subdivisions 1 and 2; and 144.1464,new text end new text begin are repealed.new text end 63.8new text begin (b)new text end new text begin Minnesota Statutes 2010, section 145A.14, subdivisions 1 and 2,new text end new text begin are repealed new text end 63.9new text begin effective January 1, 2012.new text end 63.10new text begin (c)new text end new text begin Minnesota Rules, parts 4651.0100, subparts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, new text end 63.11new text begin 14, 15, 16, 16a, 18, 19, 20, 20a, 21, 22, and 23; 4651.0110, subparts 2, 2a, 3, 4, and 5; new text end 63.12new text begin 4651.0120; 4651.0130; 4651.0140; and 4651.0150,new text end new text begin are repealed effective July 1, 2011.new text end 63.13ARTICLE 3 63.14MISCELLANEOUS 63.15    Section 1. Minnesota Statutes 2010, section 3.98, is amended by adding a subdivision 63.16to read: 63.17    new text begin Subd. 5.new text end new text begin Health note.new text end new text begin The commissioner of health, in consultation with other state new text end 63.18new text begin agencies, shall develop a report and recommendations for the legislature for a process new text end 63.19new text begin through which a health impact review of proposed legislation may be requested by a new text end 63.20new text begin legislative committee chair and ranking minority members of the house of representatives new text end 63.21new text begin and senate committees with jurisdiction over health and human services finance and new text end 63.22new text begin policy issues to estimate the impact of the proposed legislation on costs of health care for new text end 63.23new text begin public employees, state health care programs, private employers, local governments, or new text end 63.24new text begin Minnesota individuals and families, including costs related to the impact of the legislation new text end 63.25new text begin on the health status of the state or a community. The commissioner may consult with new text end 63.26new text begin local and private public health organizations and other persons or organizations in the new text end 63.27new text begin development of the report and recommendations. The report and recommendations shall new text end 63.28new text begin be provided to the legislature by January 15, 2012.new text end 63.29    Sec. 2. Minnesota Statutes 2010, section 245A.14, subdivision 4, is amended to read: 63.30    Subd. 4. Special family day care homes. Nonresidential child care programs 63.31serving 14 or fewer children that are conducted at a location other than the license holder's 63.32own residence shall be licensed under this section and the rules governing family day 63.33care or group family day care if: 64.1(a) the license holder is the primary provider of care and the nonresidential child 64.2care program is conducted in a dwelling that is located on a residential lot; 64.3(b) the license holder is an employer who may or may not be the primary provider 64.4of care, and the purpose for the child care program is to provide child care services to 64.5children of the license holder's employees; 64.6(c) the license holder is a church or religious organization; 64.7(d) the license holder is a community collaborative child care provider. For 64.8purposes of this subdivision, a community collaborative child care provider is a provider 64.9participating in a cooperative agreement with a community action agency as defined in 64.10section 256E.31; or 64.11(e) the license holder is a not-for-profit agency that provides child care in a dwelling 64.12located on a residential lot and the license holder maintains two or more contracts with 64.13community employers or other community organizations to provide child care services. 64.14The county licensing agency may grant a capacity variance to a license holder licensed 64.15under this paragraph to exceed the licensed capacity of 14 children by no more than five 64.16children during transition periods related to the work schedules of parents, if the license 64.17holder meets the following requirements: 64.18(1) the program does not exceed a capacity of 14 children more than a cumulative 64.19total of four hours per day; 64.20(2) the program meets a one to seven staff-to-child ratio during the variance period; 64.21(3) all employees receive at least an extra four hours of training per year than 64.22required in the rules governing family child care each year; 64.23(4) the facility has square footage required per child under Minnesota Rules, part 64.249502.0425; 64.25(5) the program is in compliance with local zoning regulations; 64.26(6) the program is in compliance with the applicable fire code as follows: 64.27(i) if the program serves more than five children older than 2-1/2 years of age, 64.28but no more than five children 2-1/2 years of age or less, the applicable fire code is 64.29educational occupancy, as provided in Group E Occupancy under the Minnesota State 64.30Fire Code 2003, Section 202; or 64.31(ii) if the program serves more than five children 2-1/2 years of age or less, the 64.32applicable fire code is Group I-4 Occupancies, as provided in the Minnesota State Fire 64.33Code 2003, Section 202; and 64.34(7) any age and capacity limitations required by the fire code inspection and square 64.35footage determinations shall be printed on the license.new text begin ; ornew text end 65.1new text begin (f) the license holder is the primary provider of care and has located the licensed new text end 65.2new text begin child care program in a commercial space, if the license holder meets the following new text end 65.3new text begin requirements:new text end 65.4new text begin (1) the program is in compliance with local zoning regulations;new text end 65.5new text begin (2) the program is in compliance with the applicable fire code as follows:new text end 65.6new text begin (i) if the program serves more than five children older than 2-1/2 years of age, new text end 65.7new text begin but no more than five children 2-1/2 years of age or less, the applicable fire code is new text end 65.8new text begin educational occupancy, as provided in Group E Occupancy under the Minnesota State new text end 65.9new text begin Fire Code 2003, Section 202; ornew text end 65.10new text begin (ii) if the program serves more than five children 2-1/2 years of age or less, the new text end 65.11new text begin applicable fire code is Group I-4 Occupancies, as provided under the Minnesota State Fire new text end 65.12new text begin Code 2003, Section 202;new text end 65.13new text begin (3) any age and capacity limitations required by the fire code inspection and square new text end 65.14new text begin footage determinations are printed on the license; andnew text end 65.15new text begin (4) the license holder prominently displays the license issued by the commissioner new text end 65.16new text begin which contains the statement "This special family child care provider is not licensed as a new text end 65.17new text begin child care center."new text end 65.18    Sec. 3. Minnesota Statutes 2010, section 256.01, is amended by adding a subdivision 65.19to read: 65.20    new text begin Subd. 33.new text end new text begin Combined application form; referral of veterans.new text end new text begin The commissioner new text end 65.21new text begin shall modify the combined application form to add a question asking applicants: "Are new text end 65.22new text begin you a United States military veteran?" The commissioner shall ensure that all applicants new text end 65.23new text begin who identify themselves as veterans are referred to a county veterans service officer for new text end 65.24new text begin assistance in applying to the United States Department of Veterans Affairs for any benefits new text end 65.25new text begin for which they may be eligible.new text end 65.26    Sec. 4. Minnesota Statutes 2010, section 256B.14, is amended by adding a subdivision 65.27to read: 65.28    new text begin Subd. 3a.new text end new text begin Spousal contribution.new text end new text begin (a) For purposes of this subdivision, the following new text end 65.29new text begin terms have the meanings given:new text end 65.30new text begin (1) "commissioner" means the commissioner of human services;new text end 65.31new text begin (2) "community spouse" means the spouse, who lives in the community, of an new text end 65.32new text begin individual receiving long-term care services in a long-term care facility or home care new text end 65.33new text begin services pursuant to the Medicaid waiver for elderly services under section 256B.0915 new text end 65.34new text begin or the alternative care program under section 256B.0913. A community spouse does not new text end 66.1new text begin include a spouse living in the community who receives a monthly income allowance new text end 66.2new text begin under section 256B.058, subdivision 2, or who receives home care services or home new text end 66.3new text begin and community-based services under section 256B.0915, 256B.092, or 256B.49, or the new text end 66.4new text begin alternative care program under section 256B.0913;new text end 66.5new text begin (3) "cost of care" means the actual fee-for-service costs or capitated payments for new text end 66.6new text begin the long-term care spouse;new text end 66.7new text begin (4) "department" means the Department of Human Services;new text end 66.8new text begin (5) "disabled child" means a blind or permanently and totally disabled son or new text end 66.9new text begin daughter of any age as defined in the Supplemental Security Income program or the state new text end 66.10new text begin medical review team;new text end 66.11new text begin (6) "income" means earned and unearned income, attributable to the community new text end 66.12new text begin spouse, used to calculate the adjusted gross income on the prior year's income tax return. new text end 66.13new text begin Evidence of income includes, but is not limited to, W-2 and 1099 forms; andnew text end 66.14new text begin (7) "long-term care spouse" means the spouse who is receiving long-term care new text end 66.15new text begin services in a long-term care facility or home care services pursuant to the Medicaid new text end 66.16new text begin waiver for elderly services under section 256B.0915 or the alternative care program under new text end 66.17new text begin section 256B.0913.new text end 66.18new text begin (b) The community spouse of a long-term care spouse who receives medical new text end 66.19new text begin assistance or alternative care services has an obligation to contribute to the cost of care. new text end 66.20new text begin The community spouse must pay a monthly fee on a sliding fee scale based on the new text end 66.21new text begin community spouse's income. If a minor or disabled child resides with and receives care new text end 66.22new text begin from the community spouse, then no fee shall be assessed.new text end 66.23new text begin (c) For a community spouse with an income equal to or greater than 250 percent of new text end 66.24new text begin the federal poverty guidelines for a family of two and less than 545 percent of the federal new text end 66.25new text begin poverty guidelines for a family of two, the spousal contribution shall be determined using new text end 66.26new text begin a sliding fee scale established by the commissioner that begins at 7.5 percent of the new text end 66.27new text begin community spouse's income and increases to 15 percent for those with an income of up to new text end 66.28new text begin 545 percent of the federal poverty guidelines for a family of two.new text end 66.29new text begin (d) For a community spouse with an income equal to or greater than 545 percent of new text end 66.30new text begin the federal poverty guidelines for a family of two and less than 750 percent of the federal new text end 66.31new text begin poverty guidelines for a family of two, the spousal contribution shall be determined using new text end 66.32new text begin a sliding fee scale established by the commissioner that begins at 15 percent of the new text end 66.33new text begin community spouse's income and increases to 25 percent for those with an income of up to new text end 66.34new text begin 750 percent of the federal poverty guidelines for a family of two.new text end 66.35new text begin (e) For a community spouse with an income equal to or greater than 750 percent of new text end 66.36new text begin the federal poverty guidelines for a family of two and less than 975 percent of the federal new text end 67.1new text begin poverty guidelines for a family of two, the spousal contribution shall be determined using new text end 67.2new text begin a sliding fee scale established by the commissioner that begins at 25 percent of the new text end 67.3new text begin community spouse's income and increases to 33 percent for those with an income of up to new text end 67.4new text begin 975 percent of the federal poverty guidelines for a family of two.new text end 67.5new text begin (f) For a community spouse with an income equal to or greater than 975 percent of new text end 67.6new text begin the federal poverty guidelines for a family of two, the spousal contribution shall be 33 new text end 67.7new text begin percent of the community spouse's income.new text end 67.8new text begin (g) The spousal contribution shall be explained in writing at the time eligibility for new text end 67.9new text begin medical assistance or alternative care is being determined. In addition to explaining the new text end 67.10new text begin formula used to determine the fee, the commissioner shall provide written information new text end 67.11new text begin describing how to request a variance for undue hardship, how a contribution may be new text end 67.12new text begin reviewed or redetermined, the right to appeal a contribution determination, and that new text end 67.13new text begin the consequences for not complying with a request to provide information shall be an new text end 67.14new text begin assessment against the community spouse for the full cost of care for the long-term care new text end 67.15new text begin spouse.new text end 67.16new text begin (h) The contribution shall be assessed for each month the long-term care spouse new text end 67.17new text begin has a community spouse and is eligible for medical assistance payment of long-term new text end 67.18new text begin care services or alternative care.new text end 67.19new text begin (i) The spousal contribution shall be reviewed at least once every 12 months and new text end 67.20new text begin when there is a loss or gain in income in excess of ten percent. Thirty days prior to a new text end 67.21new text begin review or redetermination, written notice must be provided to the community spouse new text end 67.22new text begin and must contain the amount the spouse is required to contribute, notice of the right to new text end 67.23new text begin redetermination and appeal, and the telephone number of the division at the department new text end 67.24new text begin that is responsible for redetermination and review. If, after review, the contribution amount new text end 67.25new text begin is to be adjusted, the commissioner shall mail a written notice to the community spouse 30 new text end 67.26new text begin days in advance of the effective date of the change in the amount of the contribution.new text end 67.27new text begin (1) The spouse shall notify the commissioner within 30 days of a gain or loss in new text end 67.28new text begin income in excess of ten percent and provide the department supporting documentation to new text end 67.29new text begin verify the need for redetermination of the fee.new text end 67.30new text begin (2) When a spouse requests a review or redetermination of the contribution amount, new text end 67.31new text begin a request for information shall be sent to the spouse within ten calendar days after the new text end 67.32new text begin commissioner receives the request for review.new text end 67.33new text begin (3) No action shall be taken on a review or redetermination until the required new text end 67.34new text begin information is received by the commissioner.new text end 68.1new text begin (4) The review of the spousal contribution shall be completed within ten days after new text end 68.2new text begin the commissioner receives completed information that verifies a loss or gain in income new text end 68.3new text begin in excess of ten percent.new text end 68.4new text begin (5) An increase in the contribution amount is effective in the month in which the new text end 68.5new text begin increase in spousal income occurs.new text end 68.6new text begin (6) A decrease in the contribution amount is effective in the month the spouse new text end 68.7new text begin verifies the reduction in income, retroactive to no longer than six months.new text end 68.8new text begin (j) In no case shall the spousal contribution exceed the amount of medical assistance new text end 68.9new text begin expended or the cost of alternative care services for the care of the long-term care spouse. new text end 68.10new text begin Annually, upon redetermination, or at termination of eligibility, the total amount of new text end 68.11new text begin medical assistance paid or costs of alternative care for the care of the long-term care spouse new text end 68.12new text begin and the total amount of the spousal contribution shall be compared. If the total amount of new text end 68.13new text begin the spousal contribution exceeds the total amount of medical assistance expended or cost new text end 68.14new text begin of alternative care, then the department shall reimburse the community spouse the excess new text end 68.15new text begin amount if the long-term care spouse is no longer receiving services, or apply the excess new text end 68.16new text begin amount to the spousal contribution due until the excess amount is exhausted.new text end 68.17new text begin (k) A community spouse may request a variance by submitting a written request new text end 68.18new text begin and supporting documentation that payment of the calculated contribution would cause new text end 68.19new text begin an undue hardship. An undue hardship is defined as the inability to pay the calculated new text end 68.20new text begin contribution due to medical expenses incurred by the community spouse. Documentation new text end 68.21new text begin must include proof of medical expenses incurred by the community spouse since the last new text end 68.22new text begin annual redetermination of the contribution amount that are not reimbursable by any public new text end 68.23new text begin or private source, and are a type, regardless of amount, that would be allowable as a new text end 68.24new text begin federal tax deduction under the Internal Revenue Code.new text end 68.25new text begin (1) A spouse who requests a variance from a notice of an increase in the amount new text end 68.26new text begin of spousal contribution shall continue to make monthly payments at the lower amount new text end 68.27new text begin pending determination of the variance request. A spouse who requests a variance from new text end 68.28new text begin the initial determination shall not be required to make a payment pending determination new text end 68.29new text begin of the variance request. Payments made pending outcome of the variance request that new text end 68.30new text begin result in overpayment must be returned to the spouse, if the community spouse is no new text end 68.31new text begin longer receiving services, or applied to the spousal contribution in the current year. If the new text end 68.32new text begin variance is denied, the spouse shall pay the additional amount due from the effective date new text end 68.33new text begin of the increase or the total amount due from the effective date of the original notice of new text end 68.34new text begin determination of the spousal contribution.new text end 69.1new text begin (2) A spouse who is granted a variance shall sign a written agreement in which the new text end 69.2new text begin spouse agrees to report to the commissioner any changes in circumstances that gave rise new text end 69.3new text begin to the undue hardship variance.new text end 69.4new text begin (3) When the commissioner receives a request for a variance, written notice of a new text end 69.5new text begin grant or denial of the variance shall be mailed to the spouse within 30 calendar days new text end 69.6new text begin after the commissioner receives the financial information required in this clause. The new text end 69.7new text begin granting of a variance will necessitate a written agreement between the spouse and the new text end 69.8new text begin commissioner with regard to the specific terms of the variance. The variance will not new text end 69.9new text begin become effective until the written agreement is signed by the spouse. If the commissioner new text end 69.10new text begin denies in whole or in part the request for a variance, the denial notice shall set forth in new text end 69.11new text begin writing the reasons for the denial that address the specific hardship and right to appeal.new text end 69.12new text begin (4) If a variance is granted, the term of the variance shall not exceed 12 months new text end 69.13new text begin unless otherwise determined by the commissioner.new text end 69.14new text begin (5) Undue hardship does not include action taken by a spouse which divested or new text end 69.15new text begin diverted income in order to avoid being assessed a spousal contribution.new text end 69.16new text begin (l) A spouse aggrieved by an action under this subdivision has the right to appeal new text end 69.17new text begin under subdivision 4. If the spouse appeals on or before the effective date of an increase in new text end 69.18new text begin the spousal fee, the spouse shall continue to make payments to the commissioner in the new text end 69.19new text begin lower amount while the appeal is pending. A spouse appealing an initial determination new text end 69.20new text begin of a spousal contribution shall not be required to make monthly payments pending an new text end 69.21new text begin appeal decision. Payments made that result in an overpayment shall be reimbursed to the new text end 69.22new text begin spouse if the long-term care spouse is no longer receiving services, or applied to the new text end 69.23new text begin spousal contribution remaining in the current year. If the commissioner's determination is new text end 69.24new text begin affirmed, the community spouse shall pay within 90 calendar days of the order the total new text end 69.25new text begin amount due from the effective date of the original notice of determination of the spousal new text end 69.26new text begin contribution. The commissioner's order is binding on the spouse and the department and new text end 69.27new text begin shall be implemented subject to section 256.045, subdivision 7. No additional notice is new text end 69.28new text begin required to enforce the commissioner's order.new text end 69.29new text begin (m) If the commissioner finds that notice of the payment obligation was given to new text end 69.30new text begin the community spouse and the spouse was determined to be able to pay, but that the new text end 69.31new text begin spouse failed or refused to pay, a cause of action exists against the community spouse new text end 69.32new text begin for that portion of medical assistance payment of long-term care services or alternative new text end 69.33new text begin care services granted after notice was given to the community spouse. The action may new text end 69.34new text begin be brought by the commissioner in the county where assistance was granted for the new text end 69.35new text begin assistance together with the costs of disbursements incurred due to the action. In addition new text end 69.36new text begin to granting the commissioner a money judgment, the court may, upon a motion or order to new text end 70.1new text begin show cause, order continuing contributions by a community spouse found able to repay new text end 70.2new text begin the commissioner. The order shall be effective only for the period of time during which new text end 70.3new text begin a contribution shall be assessed.new text end 70.4    Sec. 5. Minnesota Statutes 2010, section 326B.175, is amended to read: 70.5326B.175 ELEVATORS, ENTRANCES SEALED. 70.6    new text begin Except as provided in section 326B.188, new text end it shall be the duty of the department and 70.7the licensing authority of any municipality which adopts any such ordinance whenever 70.8it finds any such elevator under its jurisdiction in use in violation of any provision of 70.9sections 326B.163 to 326B.178 to seal the entrances of such elevator and attach a notice 70.10forbidding the use of such elevator until the provisions thereof are complied with. 70.11    Sec. 6. new text begin [326B.188] COMPLIANCE WITH ELEVATOR CODE CHANGES.new text end 70.12new text begin (a) This section applies to code requirements for existing elevators and related new text end 70.13new text begin devices under Minnesota Rules, chapter 1307, where the deadline set by law for meeting new text end 70.14new text begin the code requirements is January 29, 2012, or later.new text end 70.15new text begin (b) If the department or municipality conducting elevator inspections within its new text end 70.16new text begin jurisdiction notifies the owner of an existing elevator or related device of the code new text end 70.17new text begin requirements before the effective date of this section, the owner may submit a compliance new text end 70.18new text begin plan by December 30, 2011. If the department or municipality does not notify the owner new text end 70.19new text begin of an existing elevator or related device of the code requirements before the effective new text end 70.20new text begin date of this section, the department or municipality shall notify the owner of the code new text end 70.21new text begin requirements and permit the owner to submit a compliance plan by December 30, 2011, or new text end 70.22new text begin within 60 days after the date of notification, whichever is later.new text end 70.23new text begin (c) Any compliance plan submitted under this section must result in compliance with new text end 70.24new text begin the code requirements by the later of January 29, 2012, or three years after submission of new text end 70.25new text begin the compliance plan. Elevators and related devices that are not in compliance with the new text end 70.26new text begin code requirements by the later of January 29, 2012, or three years after the submission of new text end 70.27new text begin the compliance plan may be taken out of service as provided in section 326B.175.new text end 70.28    Sec. 7. new text begin DEVELOPMENTAL DISABILITY WAIVERED SERVICES.new text end 70.29    new text begin Subdivision 1.new text end new text begin Purpose.new text end new text begin All individuals in the state of Minnesota who are eligible new text end 70.30new text begin for developmental disability waivered services are entitled to receive adequate services, new text end 70.31new text begin within the limits of available funding, to ensure their basic needs for housing, food, health, new text end 70.32new text begin and safety are met.new text end 71.1    new text begin Subd. 2.new text end new text begin Instructions to commissioner.new text end new text begin (a) No later than November 1, 2011, new text end 71.2new text begin the commissioner of human services shall convene a workgroup to define the essential new text end 71.3new text begin services required to adequately meet the needs of individuals who receive developmental new text end 71.4new text begin disability waivered services. The commissioner shall identify the essential services in new text end 71.5new text begin each of the following tiers:new text end 71.6new text begin (1) tier 1, services and costs associated with safety, food, housing, and health care;new text end 71.7new text begin (2) tier 2, services and costs associated with enhancements toward self-sufficiency; new text end 71.8new text begin andnew text end 71.9new text begin (3) tier 3, services and costs associated with quality of life improvements.new text end 71.10new text begin (b) The commissioner, or designee, and a representative designated by the counties new text end 71.11new text begin shall cochair the workgroup. The workgroup shall consider Tier 1 services to be the most new text end 71.12new text begin important and of highest priority for available funds, and may choose to implement a policy new text end 71.13new text begin that all waiver-eligible individuals receive Tier 1 services within the limits of available new text end 71.14new text begin funding before services from Tier 2 or 3 are offered to waiver-eligible individuals.new text end 71.15    Sec. 8. new text begin ANALYSIS OF PROGRAMS AND THEIR EFFECT ON MARRIAGES; new text end 71.16new text begin REPORT.new text end 71.17new text begin (a) The commissioner of human services shall conduct an analysis of how current new text end 71.18new text begin human services programs affect the motivation and capacity of individuals to form and new text end 71.19new text begin sustain marriages in which to raise children. Programs to be examined in this marriage new text end 71.20new text begin impact analysis may include, but are not limited to, medical assistance, MinnesotaCare, new text end 71.21new text begin Minnesota family investment program, child protection, child support enforcement, and new text end 71.22new text begin child welfare services.new text end 71.23new text begin (b) Before January 1, 2012, the commissioner shall submit a report to the legislature new text end 71.24new text begin describing the results of this analysis and outline proposals to improve the ability of new text end 71.25new text begin human services programs to help people who are interested in marriage to form and new text end 71.26new text begin sustain marriages in which to raise children. The commissioner shall ensure that experts new text end 71.27new text begin on marriage are consulted on the process of conducting the analysis and writing the report.new text end 71.28    Sec. 9. new text begin INSTRUCTIONS TO COMMISSIONER.new text end 71.29new text begin To offset the cost of implementing Minnesota Statutes, section 256B.14, subdivision new text end 71.30new text begin 3a, the commissioner of human services shall collect from each county its proportionate new text end 71.31new text begin share of the cost based on population of the county. At the end of each fiscal year, the new text end 71.32new text begin commissioner shall divide ten percent of all collections made under Minnesota Statutes, new text end 71.33new text begin section 256B.14, subdivision 3a, between the counties based on the population of the new text end 71.34new text begin county.new text end 72.1    Sec. 10. new text begin LEGISLATIVE APPROVAL FOR FEDERAL FUNDS.new text end 72.2new text begin The commissioners of human services and health shall not expend any funding new text end 72.3new text begin received through federal grants or subsequent renewal of federal grants without the new text end 72.4new text begin approval of three of the four chairs and ranking minority members of the legislative new text end 72.5new text begin committees with jurisdiction over health and human services finance.new text end 72.6ARTICLE 4 72.7HEALTH LICENSING FEES 72.8    Section 1. Minnesota Statutes 2010, section 148.07, subdivision 1, is amended to read: 72.9    Subdivision 1. Renewal fees. All persons practicing chiropractic within this state, 72.10or licensed so to do, shall pay, on or before the date of expiration of their licenses, to the 72.11Board of Chiropractic Examiners a renewal fee set by the boardnew text begin in accordance with section new text end 72.12new text begin 16A.1283new text end , with a penalty set by the board for each month or portion thereof for which a 72.13license fee is in arrears and upon payment of the renewal and upon compliance with all the 72.14rules of the board, shall be entitled to renewal of their license. 72.15    Sec. 2. Minnesota Statutes 2010, section 148.108, is amended by adding a subdivision 72.16to read: 72.17    new text begin Subd. 4.new text end new text begin Animal chiropractic.new text end new text begin (a) Animal chiropractic registration fee is $125.new text end 72.18new text begin (b) Animal chiropractic registration renewal fee is $75.new text end 72.19new text begin (c) Animal chiropractic inactive renewal fee is $25.new text end 72.20    Sec. 3. Minnesota Statutes 2010, section 148.191, subdivision 2, is amended to read: 72.21    Subd. 2. Powers. (a) The board is authorized to adopt and, from time to time, revise 72.22rules not inconsistent with the law, as may be necessary to enable it to carry into effect the 72.23provisions of sections 148.171 to 148.285. The board shall prescribe by rule curricula 72.24and standards for schools and courses preparing persons for licensure under sections 72.25148.171 to 148.285. It shall conduct or provide for surveys of such schools and courses 72.26at such times as it may deem necessary. It shall approve such schools and courses as 72.27meet the requirements of sections 148.171 to 148.285 and board rules. It shall examine, 72.28license, and renew the license of duly qualified applicants. It shall hold examinations 72.29at least once in each year at such time and place as it may determine. It shall by rule 72.30adopt, evaluate, and periodically revise, as necessary, requirements for licensure and for 72.31registration and renewal of registration as defined in section 148.231. It shall maintain a 72.32record of all persons licensed by the board to practice professional or practical nursing and 72.33all registered nurses who hold Minnesota licensure and registration and are certified as 73.1advanced practice registered nurses. It shall cause the prosecution of all persons violating 73.2sections 148.171 to 148.285 and have power to incur such necessary expense therefor. 73.3It shall register public health nurses who meet educational and other requirements 73.4established by the board by rule, including payment of a fee. Prior to the adoption of rules, 73.5the board shall use the same procedures used by the Department of Health to certify public 73.6health nurses. It shall have power to issue subpoenas, and to compel the attendance of 73.7witnesses and the production of all necessary documents and other evidentiary material. 73.8Any board member may administer oaths to witnesses, or take their affirmation. It shall 73.9keep a record of all its proceedings. 73.10(b) The board shall have access to hospital, nursing home, and other medical records 73.11of a patient cared for by a nurse under review. If the board does not have a written consent 73.12from a patient permitting access to the patient's records, the nurse or facility shall delete 73.13any data in the record that identifies the patient before providing it to the board. The board 73.14shall have access to such other records as reasonably requested by the board to assist the 73.15board in its investigation. Nothing herein may be construed to allow access to any records 73.16protected by section 145.64. The board shall maintain any records obtained pursuant to 73.17this paragraph as investigative data under chapter 13. 73.18new text begin (c) The board may accept and expend grants or gifts of money or in-kind services new text end 73.19new text begin from a person, a public or private entity, or any other source for purposes consistent with new text end 73.20new text begin the board's role and within the scope of its statutory authority.new text end 73.21new text begin (d) The board may accept registration fees for meetings and conferences conducted new text end 73.22new text begin for the purposes of board activities that are within the scope of its authority.new text end 73.23    Sec. 4. Minnesota Statutes 2010, section 148.212, subdivision 1, is amended to read: 73.24    Subdivision 1. Issuance. Upon receipt of the applicable licensure or reregistration 73.25fee and permit fee, and in accordance with rules of the board, the board may issue 73.26a nonrenewable temporary permit to practice professional or practical nursing to an 73.27applicant for licensure or reregistration who is not the subject of a pending investigation 73.28or disciplinary action, nor disqualified for any other reason, under the following 73.29circumstances: 73.30(a) The applicant for licensure by examination under section 148.211, subdivision 73.311 , has graduated from an approved nursing program within the 60 days preceding board 73.32receipt of an affidavit of graduation or transcript and has been authorized by the board to 73.33write the licensure examination for the first time in the United States. The permit holder 73.34must practice professional or practical nursing under the direct supervision of a registered 74.1nurse. The permit is valid from the date of issue until the date the board takes action on 74.2the application or for 60 days whichever occurs first. 74.3(b) The applicant for licensure by endorsement under section 148.211, subdivision 2, 74.4is currently licensed to practice professional or practical nursing in another state, territory, 74.5or Canadian province. The permit is valid from submission of a proper request until the 74.6date of board action on the applicationnew text begin or for 60 days, whichever comes firstnew text end . 74.7(c)new text begin (b)new text end The applicant for licensure by endorsement under section 148.211, 74.8subdivision 2 , or for reregistration under section 148.231, subdivision 5, is currently 74.9registered in a formal, structured refresher course or its equivalent for nurses that includes 74.10clinical practice. 74.11(d) The applicant for licensure by examination under section 148.211, subdivision 74.121 , who graduated from a nursing program in a country other than the United States or 74.13Canada has completed all requirements for licensure except registering for and taking the 74.14nurse licensure examination for the first time in the United States. The permit holder must 74.15practice professional nursing under the direct supervision of a registered nurse. The permit 74.16is valid from the date of issue until the date the board takes action on the application or for 74.1760 days, whichever occurs first. 74.18    Sec. 5. Minnesota Statutes 2010, section 148.231, is amended to read: 74.19148.231 REGISTRATION; FAILURE TO REGISTER; REREGISTRATION; 74.20VERIFICATION. 74.21    Subdivision 1. Registration. Every person licensed to practice professional or 74.22practical nursing must maintain with the board a current registration for practice as a 74.23registered nurse or licensed practical nurse which must be renewed at regular intervals 74.24established by the board by rule. No certificate of registration shall be issued by the board 74.25to a nurse until the nurse has submitted satisfactory evidence of compliance with the 74.26procedures and minimum requirements established by the board. 74.27The fee for periodic registration for practice as a nurse shall be determined by the 74.28board by rulenew text begin lawnew text end . A penalty fee shall be added for any application received after the 74.29required date as specified by the board by rule. Upon receipt of the application and the 74.30required fees, the board shall verify the application and the evidence of completion of 74.31continuing education requirements in effect, and thereupon issue to the nurse a certificate 74.32of registration for the next renewal period. 74.33    Subd. 4. Failure to register. Any person licensed under the provisions of sections 74.34148.171 to 148.285 who fails to register within the required period shall not be entitled to 74.35practice nursing in this state as a registered nurse or licensed practical nurse. 75.1    Subd. 5. Reregistration. A person whose registration has lapsed desiring to 75.2resume practice shall make application for reregistration, submit satisfactory evidence of 75.3compliance with the procedures and requirements established by the board, and pay the 75.4registrationnew text begin reregistrationnew text end fee for the current period to the board. A penalty fee shall be 75.5required from a person who practiced nursing without current registration. Thereupon, the 75.6registration certificate shall be issued to the person who shall immediately be placed on 75.7the practicing list as a registered nurse or licensed practical nurse. 75.8    Subd. 6. Verification. A person licensed under the provisions of sections 148.171 to 75.9148.285 who requests the board to verify a Minnesota license to another state, territory, 75.10or country or to an agency, facility, school, or institution shall pay a fee to the board 75.11for each verification. 75.12    Sec. 6. new text begin [148.242] FEES.new text end 75.13new text begin The fees specified in section 148.243 are nonrefundable and must be deposited in new text end 75.14new text begin the state government special revenue fund.new text end 75.15    Sec. 7. new text begin [148.243] FEE AMOUNTS.new text end 75.16    new text begin Subdivision 1.new text end new text begin Licensure by examination.new text end new text begin The fee for licensure by examination is new text end 75.17new text begin $105.new text end 75.18    new text begin Subd. 2.new text end new text begin Reexamination fee.new text end new text begin The reexamination fee is $60.new text end 75.19    new text begin Subd. 3.new text end new text begin Licensure by endorsement.new text end new text begin The fee for licensure by endorsement is $105.new text end 75.20    new text begin Subd. 4.new text end new text begin Registration renewal.new text end new text begin The fee for registration renewal is $85.new text end 75.21    new text begin Subd. 5.new text end new text begin Reregistration.new text end new text begin The fee for reregistration is $105.new text end 75.22    new text begin Subd. 6.new text end new text begin Replacement license.new text end new text begin The fee for a replacement license is $20.new text end 75.23    new text begin Subd. 7.new text end new text begin Public health nurse certification.new text end new text begin The fee for public health nurse new text end 75.24new text begin certification is $30.new text end 75.25    new text begin Subd. 8.new text end new text begin Drug Enforcement Administration verification for Advanced Practice new text end 75.26new text begin Registered Nurse (APRN).new text end new text begin The Drug Enforcement Administration verification for new text end 75.27new text begin APRN is $50.new text end 75.28    new text begin Subd. 9.new text end new text begin Licensure verification other than through Nursys.new text end new text begin The fee for new text end 75.29new text begin verification of licensure status other than through Nursys verification is $20.new text end 75.30    new text begin Subd. 10.new text end new text begin Verification of examination scores.new text end new text begin The fee for verification of new text end 75.31new text begin examination scores is $20.new text end 75.32    new text begin Subd. 11.new text end new text begin Microfilmed licensure application materials.new text end new text begin The fee for a copy of new text end 75.33new text begin microfilmed licensure application materials is $20.new text end 76.1    new text begin Subd. 12.new text end new text begin Nursing business registration; initial application.new text end new text begin The fee for the initial new text end 76.2new text begin application for nursing business registration is $100.new text end 76.3    new text begin Subd. 13.new text end new text begin Nursing business registration; annual application.new text end new text begin The fee for the new text end 76.4new text begin annual application for nursing business registration is $25.new text end 76.5    new text begin Subd. 14.new text end new text begin Practicing without current registration.new text end new text begin The fee for practicing without new text end 76.6new text begin current registration is two times the amount of the current registration renewal fee for any new text end 76.7new text begin part of the first calendar month, plus the current registration renewal fee for any part of new text end 76.8new text begin any subsequent month up to 24 months.new text end 76.9    new text begin Subd. 15.new text end new text begin Practicing without current APRN certification.new text end new text begin The fee for practicing new text end 76.10new text begin without current APRN certification is $200 for the first month or any part thereof, plus new text end 76.11new text begin $100 for each subsequent month or part thereof.new text end 76.12    new text begin Subd. 16.new text end new text begin Dishonored check fee.new text end new text begin The service fee for a dishonored check is as new text end 76.13new text begin provided in section 604.113.new text end 76.14    new text begin Subd. 17.new text end new text begin Border state registry fee.new text end new text begin The initial application fee for border state new text end 76.15new text begin registration is $50. Any subsequent notice of employment change to remain or be new text end 76.16new text begin reinstated on the registry is $50.new text end 76.17    Sec. 8. Minnesota Statutes 2010, section 148B.17, is amended to read: 76.18148B.17 FEES. 76.19    new text begin Subdivision. 1.new text end new text begin Fees; Board of Marriage and Family Therapy.new text end Each board shall 76.20by rule establishnew text begin The board'snew text end fees, including late fees, for licenses and renewalsnew text begin are new text end 76.21new text begin establishednew text end so that the total fees collected by the board will as closely as possible equal 76.22anticipated expenditures during the fiscal biennium, as provided in section 16A.1285. 76.23Fees must be credited to accountsnew text begin the board's accountnew text end in thenew text begin state governmentnew text end special 76.24revenue fund. 76.25    new text begin Subd. 2.new text end new text begin Licensure and application fees.new text end new text begin Nonrefundable licensure and application new text end 76.26new text begin fees charged by the board are as follows:new text end 76.27new text begin (1) application fee for national examination is $220;new text end 76.28new text begin (2) application fee for Licensed Marriage and Family Therapist (LMFT) state new text end 76.29new text begin examination is $110;new text end 76.30new text begin (3) initial LMFT license fee is prorated, but cannot exceed $125;new text end 76.31new text begin (4) annual renewal fee for LMFT license is $125;new text end 76.32new text begin (5) late fee for initial Licensed Associate Marriage and Family Therapist LAMFT new text end 76.33new text begin license renewal is $50;new text end 76.34new text begin (6) application fee for LMFT licensure by reciprocity is $340;new text end 77.1new text begin (7) fee for initial Licensed Associate Marriage and Family Therapist (LAMFT) new text end 77.2new text begin license is $75;new text end 77.3new text begin (8) annual renewal fee for LAMFT license is $75;new text end 77.4new text begin (9) late fee for LAMFT renewal is $50;new text end 77.5new text begin (10) fee for reinstatement of license is $150; and new text end 77.6new text begin (11) fee for emeritus status is $125.new text end 77.7    new text begin Subd. 3.new text end new text begin Other fees.new text end new text begin Other fees charged by the board are as follows:new text end 77.8new text begin (1) sponsor application fee for approval of a continuing education course is $60;new text end 77.9new text begin (2) fee for license verification by mail is $10;new text end 77.10new text begin (3) duplicate license fee is $25;new text end 77.11new text begin (4) duplicate renewal card fee is $10;new text end 77.12new text begin (5) fee for licensee mailing list is $60;new text end 77.13new text begin (6) fee for a rule book is $10; andnew text end 77.14new text begin (7) fees as authorized by section 148B.175, subdivision 6, clause (7).new text end 77.15    Sec. 9. Minnesota Statutes 2010, section 148B.33, subdivision 2, is amended to read: 77.16    Subd. 2. Fee. Each applicant shall pay a nonrefundable application fee set by 77.17the boardnew text begin under section 148B.17new text end . 77.18    Sec. 10. Minnesota Statutes 2010, section 148B.52, is amended to read: 77.19148B.52 DUTIES OF THE BOARD. 77.20(a) The Board of Behavioral Health and Therapy shall: 77.21(1) establish by rule appropriate techniques, including examinations and other 77.22methods, for determining whether applicants and licensees are qualified under sections 77.23148B.50 to 148B.593; 77.24(2) establish by rule standards for professional conduct, including adoption of a 77.25Code of Professional Ethics and requirements for continuing education and supervision; 77.26(3) issue licenses to individuals qualified under sections 148B.50 to 148B.593; 77.27(4) establish by rule standards for initial education including coursework for 77.28licensure and content of professional education; 77.29(5) establish, maintain, and publish annually a register of current licensees and 77.30approved supervisors; 77.31(6) establish initial and renewal application and examination fees sufficient to cover 77.32operating expenses of the board and its agentsnew text begin in accordance with section 16A.1283new text end ; 78.1(7) educate the public about the existence and content of the laws and rules for 78.2licensed professional counselors to enable consumers to file complaints against licensees 78.3who may have violated the rules; and 78.4(8) periodically evaluate its rules in order to refine the standards for licensing 78.5professional counselors and to improve the methods used to enforce the board's standards. 78.6(b) The board may appoint a professional discipline committee for each occupational 78.7licensure regulated by the board, and may appoint a board member as chair. The 78.8professional discipline committee shall consist of five members representative of the 78.9licensed occupation and shall provide recommendations to the board with regard to rule 78.10techniques, standards, procedures, and related issues specific to the licensed occupation. 78.11    Sec. 11. Minnesota Statutes 2010, section 150A.091, subdivision 2, is amended to read: 78.12    Subd. 2. Application fees. Each applicant shall submit with a licensenew text begin , advanced new text end 78.13new text begin dental therapist certificate,new text end or permit application a nonrefundable fee in the following 78.14amounts in order to administratively process an application: 78.15(1) dentist, $140; 78.16new text begin (2) full faculty dentist, $140;new text end 78.17(2)new text begin (3)new text end limited faculty dentist, $140; 78.18(3)new text begin (4)new text end resident dentistnew text begin or dental providernew text end , $55; 78.19new text begin (5) advanced dental therapist, $100;new text end 78.20(4)new text begin (6)new text end dental therapist, $100; 78.21(5)new text begin (7)new text end dental hygienist, $55; 78.22(6)new text begin (8)new text end licensed dental assistant, $55; and 78.23(7)new text begin (9)new text end dental assistant with a permit as described in Minnesota Rules, part 78.243100.8500, subpart 3, $15. 78.25    Sec. 12. Minnesota Statutes 2010, section 150A.091, subdivision 3, is amended to read: 78.26    Subd. 3. Initial license or permit fees. Along with the application fee, each of the 78.27following applicants shall submit a separate prorated initial license or permit fee. The 78.28prorated initial fee shall be established by the board based on the number of months of the 78.29applicant's initial term as described in Minnesota Rules, part 3100.1700, subpart 1a, not to 78.30exceed the following monthly fee amounts: 78.31(1) dentistnew text begin or full faculty dentistnew text end , $14 times the number of months of the initial term; 78.32(2) dental therapist, $10 times the number of months of the initial term; 78.33(3) dental hygienist, $5 times the number of months of the initial term; 78.34(4) licensed dental assistant, $3 times the number of months of the initial term; and 79.1(5) dental assistant with a permit as described in Minnesota Rules, part 3100.8500, 79.2subpart 3, $1 times the number of months of the initial term. 79.3    Sec. 13. Minnesota Statutes 2010, section 150A.091, subdivision 4, is amended to read: 79.4    Subd. 4. Annual license fees. Each limited faculty or resident dentist shall submit 79.5with an annual license renewal application a fee established by the board not to exceed 79.6the following amounts: 79.7(1) limited faculty dentist, $168; and 79.8(2) resident dentistnew text begin or dental providernew text end , $59. 79.9    Sec. 14. Minnesota Statutes 2010, section 150A.091, subdivision 5, is amended to read: 79.10    Subd. 5. Biennial license or permit fees. Each of the following applicants shall 79.11submit with a biennial license or permit renewal application a fee as established by the 79.12board, not to exceed the following amounts: 79.13(1) dentistnew text begin or full faculty dentistnew text end , $336; 79.14(2) dental therapist, $180; 79.15(3) dental hygienist, $118; 79.16(4) licensed dental assistant, $80; and 79.17(5) dental assistant with a permit as described in Minnesota Rules, part 3100.8500, 79.18subpart 3, $24. 79.19    Sec. 15. Minnesota Statutes 2010, section 150A.091, subdivision 8, is amended to read: 79.20    Subd. 8. Duplicate license or certificate fee. Each applicant shall submit, with 79.21a request for issuance of a duplicate of the original license, or of an annual or biennial 79.22renewal certificate for a license or permit, a fee in the following amounts: 79.23(1) original dentist,new text begin full faculty dentist,new text end dental therapist, dental hygiene, or dental 79.24assistant license, $35; and 79.25(2) annual or biennial renewal certificates, $10. 79.26    Sec. 16. Minnesota Statutes 2010, section 150A.091, is amended by adding a 79.27subdivision to read: 79.28    new text begin Subd. 16.new text end new text begin Failure of professional development portfolio audit.new text end new text begin A licensee shall new text end 79.29new text begin submit a fee as established by the board not to exceed the amount of $250 after failing new text end 79.30new text begin two consecutive professional development portfolio audits and, thereafter, for each failed new text end 79.31new text begin professional development portfolio audit under Minnesota Rules, part 3100.5300.new text end 80.1    Sec. 17. new text begin [151.065] FEE AMOUNTS.new text end 80.2    new text begin Subdivision 1.new text end new text begin Application fees.new text end new text begin Application fees for licensure and registration new text end 80.3new text begin are as follows:new text end 80.4new text begin (1) pharmacist licensed by examination, $130;new text end 80.5new text begin (2) pharmacist licensed by reciprocity, $225;new text end 80.6new text begin (3) pharmacy intern, $30;new text end 80.7new text begin (4) pharmacy technician, $30;new text end 80.8new text begin (5) pharmacy, $190;new text end 80.9new text begin (6) drug wholesaler, legend drugs only, $200;new text end 80.10new text begin (7) drug wholesaler, legend and nonlegend drugs, $200;new text end 80.11new text begin (8) drug wholesaler, nonlegend drugs, veterinary legend drugs, or both, $175;new text end 80.12new text begin (9) drug wholesaler, medical gases, $150;new text end 80.13new text begin (10) drug wholesaler, also licensed as a pharmacy in Minnesota, $125;new text end 80.14new text begin (11) drug manufacturer, legend drugs only, $200;new text end 80.15new text begin (12) drug manufacturer, legend and nonlegend drugs, $200;new text end 80.16new text begin (13) drug manufacturer, nonlegend or veterinary legend drugs, $175;new text end 80.17new text begin (14) drug manufacturer, medical gases, $150;new text end 80.18new text begin (15) drug manufacturer, also licensed as a pharmacy in Minnesota, $125;new text end 80.19new text begin (16) medical gas distributor, $75;new text end 80.20new text begin (17) controlled substance researcher, $50; andnew text end 80.21new text begin (18) pharmacy professional corporation, $100.new text end 80.22    new text begin Subd. 2.new text end new text begin Original license fee.new text end new text begin The pharmacist original licensure fee, $130.new text end 80.23    new text begin Subd. 3.new text end new text begin Annual renewal fees.new text end new text begin Annual licensure and registration renewal fees new text end 80.24new text begin are as follows:new text end 80.25new text begin (1) pharmacist, $130;new text end 80.26new text begin (2) pharmacy technician, $30;new text end 80.27new text begin (3) pharmacy, $190;new text end 80.28new text begin (4) drug wholesaler, legend drugs only, $200;new text end 80.29new text begin (5) drug wholesaler, legend and nonlegend drugs, $200;new text end 80.30new text begin (6) drug wholesaler, nonlegend drugs, veterinary legend drugs, or both, $175;new text end 80.31new text begin (7) drug wholesaler, medical gases, $150;new text end 80.32new text begin (8) drug wholesaler, also licensed as a pharmacy in Minnesota, $125;new text end 80.33new text begin (9) drug manufacturer, legend drugs only, $200;new text end 80.34new text begin (10) drug manufacturer, legend and nonlegend drugs, $200;new text end 80.35new text begin (11) drug manufacturer, nonlegend, veterinary legend drugs, or both, $175;new text end 80.36new text begin (12) drug manufacturer, medical gases, $150;new text end 81.1new text begin (13) drug manufacturer, also licensed as a pharmacy in Minnesota, $125;new text end 81.2new text begin (14) medical gas distributor, $75;new text end 81.3new text begin (15) controlled substance researcher, $50; andnew text end 81.4new text begin (16) pharmacy professional corporation, $45.new text end 81.5    new text begin Subd. 4.new text end new text begin Miscellaneous fees.new text end new text begin Fees for issuance of affidavits and duplicate licenses new text end 81.6new text begin and certificates are as follows:new text end 81.7new text begin (1) intern affidavit, $15;new text end 81.8new text begin (2) duplicate small license, $15; andnew text end 81.9new text begin (3) duplicate large certificate, $25.new text end 81.10    new text begin Subd. 5.new text end new text begin Late fees.new text end new text begin All annual renewal fees are subject to a 50 percent late fee if new text end 81.11new text begin the renewal fee and application are not received by the board prior to the date specified new text end 81.12new text begin by the board.new text end 81.13    new text begin Subd. 6.new text end new text begin Reinstatement fees.new text end new text begin (a) A pharmacist who has allowed the pharmacist's new text end 81.14new text begin license to lapse may reinstate the license with board approval and upon payment of any new text end 81.15new text begin fees and late fees in arrears, up to a maximum of $1,000.new text end 81.16new text begin (b) A pharmacy technician who has allowed the technician's registration to lapse new text end 81.17new text begin may reinstate the registration with board approval and upon payment of any fees and late new text end 81.18new text begin fees in arrears, up to a maximum of $90.new text end 81.19new text begin (c) An owner of a pharmacy, a drug wholesaler, a drug manufacturer, or a medical new text end 81.20new text begin gas distributor who has allowed the license of the establishment to lapse may reinstate the new text end 81.21new text begin license with board approval and upon payment of any fees and late fees in arrears.new text end 81.22new text begin (d) A controlled substance researcher who has allowed the researcher's registration new text end 81.23new text begin to lapse may reinstate the registration with board approval and upon payment of any fees new text end 81.24new text begin and late fees in arrears.new text end 81.25new text begin (e) A pharmacist owner of a professional corporation who has allowed the new text end 81.26new text begin corporation's registration to lapse may reinstate the registration with board approval and new text end 81.27new text begin upon payment of any fees and late fees in arrears.new text end 81.28    Sec. 18. Minnesota Statutes 2010, section 151.07, is amended to read: 81.29151.07 MEETINGS; EXAMINATION FEE. 81.30The board shall meet at times as may be necessary and as it may determine to 81.31examine applicants for licensure and to transact its other business, giving reasonable 81.32notice of all examinations by mail to known applicants therefor. The secretary shall record 81.33the names of all persons licensed by the board, together with the grounds upon which 81.34the right of each to licensure was claimed. The fee for examination shall be in suchnew text begin the new text end 82.1 amount as the board may determinenew text begin specified in section 151.065new text end , which fee may in the 82.2discretion of the board be returned to applicants not taking the examination. 82.3    Sec. 19. Minnesota Statutes 2010, section 151.101, is amended to read: 82.4151.101 INTERNSHIP. 82.5new text begin Upon payment of the fee specified in section 151.065, new text end the board may licensenew text begin registernew text end 82.6as an intern any natural persons who have satisfied the board that they are of good moral 82.7character, not physically or mentally unfit, and who have successfully completed the 82.8educational requirements for intern licensurenew text begin registrationnew text end prescribed by the board. The 82.9board shall prescribe standards and requirements for interns, pharmacist-preceptors, and 82.10internship training but may not require more than one year of such training. 82.11The board in its discretion may accept internship experience obtained in another 82.12state provided the internship requirements in such other state are in the opinion of the 82.13board equivalent to those herein provided. 82.14    Sec. 20. Minnesota Statutes 2010, section 151.102, is amended by adding a subdivision 82.15to read: 82.16    new text begin Subd. 3.new text end new text begin Registration fee.new text end new text begin The board shall not register an individual as a pharmacy new text end 82.17new text begin technician unless all applicable fees specified in section 151.065 have been paid.new text end 82.18    Sec. 21. Minnesota Statutes 2010, section 151.12, is amended to read: 82.19151.12 RECIPROCITY; LICENSURE. 82.20The board may in its discretion grant licensure without examination to any 82.21pharmacist licensed by the Board of Pharmacy or a similar board of another state which 82.22accords similar recognition to licensees of this state; provided, the requirements for 82.23licensure in such other state are in the opinion of the board equivalent to those herein 82.24provided. The fee for licensure shall be in suchnew text begin thenew text end amount as the board may determine by 82.25rulenew text begin specified in section 151.065new text end . 82.26    Sec. 22. Minnesota Statutes 2010, section 151.13, subdivision 1, is amended to read: 82.27    Subdivision 1. Renewal fee. Every person licensed by the board new text begin as a pharmacist new text end 82.28shall pay to the board anew text begin the annualnew text end renewal fee to be fixed by itnew text begin specified in section new text end 82.29new text begin 151.065new text end . The board may promulgate by rule a charge to be assessed for the delinquent 82.30payment of a fee.new text begin the late fee specified in section 151.065 if the renewal fee and new text end 82.31new text begin application are not received by the board prior to the date specified by the board.new text end It shall 82.32be unlawful for any person licensed as a pharmacist who refuses or fails to pay suchnew text begin any new text end 83.1new text begin applicable new text end renewal new text begin or late new text end fee to practice pharmacy in this state. Every certificate and 83.2license shall expire at the time therein prescribed. 83.3    Sec. 23. Minnesota Statutes 2010, section 151.19, is amended to read: 83.4151.19 REGISTRATION; FEES. 83.5    Subdivision 1. Pharmacy registration. The board shall require and provide for the 83.6annual registration of every pharmacy now or hereafter doing business within this state. 83.7Upon the payment of anew text begin any applicable new text end fee to be set by the boardnew text begin specified in section new text end 83.8new text begin 151.065new text end , the board shall issue a registration certificate in such form as it may prescribe to 83.9such persons as may be qualified by law to conduct a pharmacy. Such certificate shall be 83.10displayed in a conspicuous place in the pharmacy for which it is issued and expire on the 83.1130th day of June following the date of issue. It shall be unlawful for any person to conduct 83.12a pharmacy unless such certificate has been issued to the person by the board. 83.13    Subd. 2. Nonresident pharmacies. The board shall require and provide for an 83.14annual nonresident special pharmacy registration for all pharmacies located outside of this 83.15state that regularly dispense medications for Minnesota residents and mail, ship, or deliver 83.16prescription medications into this state. Nonresident special pharmacy registration shall 83.17be granted by the board upon new text begin payment of any applicable fee specified in section 151.065 new text end 83.18new text begin and new text end the disclosure and certification by a pharmacy: 83.19    (1) that it is licensed in the state in which the dispensing facility is located and from 83.20which the drugs are dispensed; 83.21    (2) the location, names, and titles of all principal corporate officers and all 83.22pharmacists who are dispensing drugs to residents of this state; 83.23    (3) that it complies with all lawful directions and requests for information from 83.24the Board of Pharmacy of all states in which it is licensed or registered, except that it 83.25shall respond directly to all communications from the board concerning emergency 83.26circumstances arising from the dispensing of drugs to residents of this state; 83.27    (4) that it maintains its records of drugs dispensed to residents of this state so that the 83.28records are readily retrievable from the records of other drugs dispensed; 83.29    (5) that it cooperates with the board in providing information to the Board of 83.30Pharmacy of the state in which it is licensed concerning matters related to the dispensing 83.31of drugs to residents of this state; 83.32    (6) that during its regular hours of operation, but not less than six days per week, for 83.33a minimum of 40 hours per week, a toll-free telephone service is provided to facilitate 83.34communication between patients in this state and a pharmacist at the pharmacy who has 84.1access to the patients' records; the toll-free number must be disclosed on the label affixed 84.2to each container of drugs dispensed to residents of this state; and 84.3    (7) that, upon request of a resident of a long-term care facility located within the 84.4state of Minnesota, the resident's authorized representative, or a contract pharmacy or 84.5licensed health care facility acting on behalf of the resident, the pharmacy will dispense 84.6medications prescribed for the resident in unit-dose packaging or, alternatively, comply 84.7with the provisions of section 151.415, subdivision 5. 84.8    Subd. 3. Sale of federally restricted medical gases. The board shall require and 84.9provide for the annual registration of every person or establishment not licensed as a 84.10pharmacy or a practitioner engaged in the retail sale or distribution of federally restricted 84.11medical gases. Upon the payment of anew text begin any applicable new text end fee to be set by the boardnew text begin specified new text end 84.12new text begin in section 151.065new text end , the board shall issue a registration certificate in such form as it may 84.13prescribe to those persons or places that may be qualified to sell or distribute federally 84.14restricted medical gases. The certificate shall be displayed in a conspicuous place in the 84.15business for which it is issued and expire on the date set by the board. It is unlawful for 84.16a person to sell or distribute federally restricted medical gases unless a certificate has 84.17been issued to that person by the board. 84.18    Sec. 24. Minnesota Statutes 2010, section 151.25, is amended to read: 84.19151.25 REGISTRATION OF MANUFACTURERS; FEE; PROHIBITIONS. 84.20The board shall require and provide for the annual registration of every person 84.21engaged in manufacturing drugs, medicines, chemicals, or poisons for medicinal purposes, 84.22now or hereafter doing business with accounts in this state. Upon a payment of anew text begin any new text end 84.23new text begin applicablenew text end fee as set by the boardnew text begin specified in section 151.065new text end , the board shall issue a 84.24registration certificate in such form as it may prescribe to such manufacturer. Such 84.25registration certificate shall be displayed in a conspicuous place in such manufacturer's 84.26or wholesaler's place of business for which it is issued and expire on the date set by the 84.27board. It shall be unlawful for any person to manufacture drugs, medicines, chemicals, 84.28or poisons for medicinal purposes unless such a certificate has been issued to the person 84.29by the board. It shall be unlawful for any person engaged in the manufacture of drugs, 84.30medicines, chemicals, or poisons for medicinal purposes, or the person's agent, to sell 84.31legend drugs to other than a pharmacy, except as provided in this chapter. 84.32    Sec. 25. Minnesota Statutes 2010, section 151.47, subdivision 1, is amended to read: 84.33    Subdivision 1. Requirements. All wholesale drug distributors are subject to the 84.34requirements in paragraphs (a) to (f). 85.1(a) No person or distribution outlet shall act as a wholesale drug distributor without 85.2first obtaining a license from the board and paying the requirednew text begin any applicable new text end feenew text begin new text end 85.3new text begin specified in section 151.065new text end . 85.4(b) No license shall be issued or renewed for a wholesale drug distributor to operate 85.5unless the applicant agrees to operate in a manner prescribed by federal and state law and 85.6according to the rules adopted by the board. 85.7(c) The board may require a separate license for each facility directly or indirectly 85.8owned or operated by the same business entity within the state, or for a parent entity 85.9with divisions, subsidiaries, or affiliate companies within the state, when operations 85.10are conducted at more than one location and joint ownership and control exists among 85.11all the entities. 85.12(d) As a condition for receiving and retaining a wholesale drug distributor license 85.13issued under sections 151.42 to 151.51, an applicant shall satisfy the board that it has 85.14and will continuously maintain: 85.15(1) adequate storage conditions and facilities; 85.16(2) minimum liability and other insurance as may be required under any applicable 85.17federal or state law; 85.18(3) a viable security system that includes an after hours central alarm, or comparable 85.19entry detection capability; restricted access to the premises; comprehensive employment 85.20applicant screening; and safeguards against all forms of employee theft; 85.21(4) a system of records describing all wholesale drug distributor activities set forth 85.22in section 151.44 for at least the most recent two-year period, which shall be reasonably 85.23accessible as defined by board regulations in any inspection authorized by the board; 85.24(5) principals and persons, including officers, directors, primary shareholders, 85.25and key management executives, who must at all times demonstrate and maintain their 85.26capability of conducting business in conformity with sound financial practices as well 85.27as state and federal law; 85.28(6) complete, updated information, to be provided to the board as a condition for 85.29obtaining and retaining a license, about each wholesale drug distributor to be licensed, 85.30including all pertinent corporate licensee information, if applicable, or other ownership, 85.31principal, key personnel, and facilities information found to be necessary by the board; 85.32(7) written policies and procedures that assure reasonable wholesale drug distributor 85.33preparation for, protection against, and handling of any facility security or operation 85.34problems, including, but not limited to, those caused by natural disaster or government 85.35emergency, inventory inaccuracies or product shipping and receiving, outdated product 86.1or other unauthorized product control, appropriate disposition of returned goods, and 86.2product recalls; 86.3(8) sufficient inspection procedures for all incoming and outgoing product 86.4shipments; and 86.5(9) operations in compliance with all federal requirements applicable to wholesale 86.6drug distribution. 86.7(e) An agent or employee of any licensed wholesale drug distributor need not seek 86.8licensure under this section. 86.9(f) A wholesale drug distributor shall file with the board an annual report, in a 86.10form and on the date prescribed by the board, identifying all payments, honoraria, 86.11reimbursement or other compensation authorized under section 151.461, clauses (3) to 86.12(5), paid to practitioners in Minnesota during the preceding calendar year. The report 86.13shall identify the nature and value of any payments totaling $100 or more, to a particular 86.14practitioner during the year, and shall identify the practitioner. Reports filed under this 86.15provision are public data. 86.16    Sec. 26. Minnesota Statutes 2010, section 151.48, is amended to read: 86.17151.48 OUT-OF-STATE WHOLESALE DRUG DISTRIBUTOR LICENSING. 86.18(a) It is unlawful for an out-of-state wholesale drug distributor to conduct business 86.19in the state without first obtaining a license from the board and paying the requirednew text begin any new text end 86.20new text begin applicablenew text end feenew text begin specified in section 151.065new text end . 86.21(b) Application for an out-of-state wholesale drug distributor license under this 86.22section shall be made on a form furnished by the board. 86.23(c) No person acting as principal or agent for any out-of-state wholesale drug 86.24distributor may sell or distribute drugs in the state unless the distributor has obtained 86.25a license. 86.26(d) The board may adopt regulations that permit out-of-state wholesale drug 86.27distributors to obtain a license on the basis of reciprocity to the extent that an out-of-state 86.28wholesale drug distributor: 86.29(1) possesses a valid license granted by another state under legal standards 86.30comparable to those that must be met by a wholesale drug distributor of this state as 86.31prerequisites for obtaining a license under the laws of this state; and 86.32(2) can show that the other state would extend reciprocal treatment under its own 86.33laws to a wholesale drug distributor of this state. 86.34    Sec. 27. Minnesota Statutes 2010, section 152.12, subdivision 3, is amended to read: 87.1    Subd. 3. Research project use of controlled substances. Any qualified person 87.2may use controlled substances in the course of a bona fide research project but cannot 87.3administer or dispense such drugs to human beings unless such drugs are prescribed, 87.4dispensed and administered by a person lawfully authorized to do so. Every person 87.5who engages in research involving the use of such substances shall apply annually for 87.6registration by the state Board of Pharmacy new text begin and shall pay any applicable fee specified in new text end 87.7new text begin section 151.065, new text end provided that such registration shall not be required if the person is 87.8covered by and has complied with federal laws covering such research projects. 87.9ARTICLE 5 87.10HEALTH CARE 87.11    Section 1. Minnesota Statutes 2010, section 62E.08, subdivision 1, is amended to read: 87.12    Subdivision 1. Establishment. The association shall establish the following 87.13maximum premiums to be charged for membership in the comprehensive health insurance 87.14plan: 87.15(a) the premium for the number one qualified plan shall range from a minimum of 87.16101 percent to a maximum of 125 percent of the weighted average of rates charged by 87.17those insurers and health maintenance organizations with individuals enrolled in: 87.18(1) $1,000 annual deductible individual plans of insurance in force in Minnesota; 87.19(2) individual health maintenance organization contracts of coverage with a $1,000 87.20annual deductible which are in force in Minnesota; and 87.21(3) other plans of coverage similar to plans offered by the association based on 87.22generally accepted actuarial principles; 87.23(b) the premium for the number two qualified plan shall range from a minimum of 87.24101 percent to a maximum of 125 percent of the weighted average of rates charged by 87.25those insurers and health maintenance organizations with individuals enrolled in: 87.26(1) $500 annual deductible individual plans of insurance in force in Minnesota; 87.27(2) individual health maintenance organization contracts of coverage with a $500 87.28annual deductible which are in force in Minnesota; and 87.29(3) other plans of coverage similar to plans offered by the association based on 87.30generally accepted actuarial principles; 87.31(c) the premiums for the plans with a $2,000, $5,000, or $10,000 annual deductible 87.32shall range from a minimum of 101 percent to a maximum of 125 percent of the weighted 87.33average of rates charged by those insurers and health maintenance organizations with 87.34individuals enrolled in: 88.1(1) $2,000, $5,000, or $10,000 annual deductible individual plans, respectively, in 88.2force in Minnesota; and 88.3(2) individual health maintenance organization contracts of coverage with a $2,000, 88.4$5,000, or $10,000 annual deductible, respectively, which are in force in Minnesota; or 88.5(3) other plans of coverage similar to plans offered by the association based on 88.6generally accepted actuarial principles; 88.7(d) the premium for each type of Medicare supplement plan required to be offered 88.8by the association pursuant to section 62E.12 shall range from a minimum of 101 percent 88.9to a maximum of 125 percent of the weighted average of rates charged by those insurers 88.10and health maintenance organizations with individuals enrolled in: 88.11(1) Medicare supplement plans in force in Minnesota; 88.12(2) health maintenance organization Medicare supplement contracts of coverage 88.13which are in force in Minnesota; and 88.14(3) other plans of coverage similar to plans offered by the association based on 88.15generally accepted actuarial principles; and 88.16(e) the charge for health maintenance organization coverage shall be based on 88.17generally accepted actuarial principles.new text begin ; andnew text end 88.18new text begin (f) the premium for a high-deductible, basic plan offered under section 62E.121 shall new text end 88.19new text begin range from a minimum of 101 percent to a maximum of 125 percent of the weighted new text end 88.20new text begin average of rates charged by those insurers and health maintenance organizations offering new text end 88.21new text begin comparable plans outside of the Minnesota Comprehensive Health Association.new text end 88.22The list of insurers and health maintenance organizations whose rates are used to 88.23establish the premium for coverage offered by the association pursuant to paragraphs (a) 88.24to (d) new text begin and (f) new text end shall be established by the commissioner on the basis of information which 88.25shall be provided to the association by all insurers and health maintenance organizations 88.26annually at the commissioner's request. This information shall include the number of 88.27individuals covered by each type of plan or contract specified in paragraphs (a) to (d) new text begin and new text end 88.28new text begin (f) new text end that is sold, issued, and renewed by the insurers and health maintenance organizations, 88.29including those plans or contracts available only on a renewal basis. The information shall 88.30also include the rates charged for each type of plan or contract. 88.31In establishing premiums pursuant to this section, the association shall utilize 88.32generally accepted actuarial principles, provided that the association shall not discriminate 88.33in charging premiums based upon sex. In order to compute a weighted average for each 88.34type of plan or contract specified under paragraphs (a) to (d)new text begin and (f)new text end , the association 88.35shall, using the information collected pursuant to this subdivision, list insurers and health 88.36maintenance organizations in rank order of the total number of individuals covered by 89.1each insurer or health maintenance organization. The association shall then compute 89.2a weighted average of the rates charged for coverage by all the insurers and health 89.3maintenance organizations by: 89.4(1) multiplying the numbers of individuals covered by each insurer or health 89.5maintenance organization by the rates charged for coverage; 89.6(2) separately summing both the number of individuals covered by all the insurers 89.7and health maintenance organizations and all the products computed under clause (1); and 89.8(3) dividing the total of the products computed under clause (1) by the total number 89.9of individuals covered. 89.10The association may elect to use a sample of information from the insurers and 89.11health maintenance organizations for purposes of computing a weighted average. In no 89.12case, however, may a sample used by the association to compute a weighted average 89.13include information from fewer than the two insurers or health maintenance organizations 89.14highest in rank order. 89.15    Sec. 2. new text begin [62E.121] HIGH-DEDUCTIBLE, BASIC PLAN.new text end 89.16    new text begin Subdivision 1.new text end new text begin Required offering.new text end new text begin The Minnesota Comprehensive Health new text end 89.17new text begin Association shall offer a high-deductible, basic plan that meets the requirements specified new text end 89.18new text begin in this section. The high-deductible, basic plan is a one-person plan. Any dependents new text end 89.19new text begin must be covered separately.new text end 89.20    new text begin Subd. 2.new text end new text begin Annual deductible; out-of-pocket maximum.new text end new text begin (a) The plan shall provide new text end 89.21new text begin the following in-network annual deductible options: $3,000, $6,000, $9,000, and $12,000. new text end 89.22new text begin The in-network annual out-of-pocket maximum for each annual deductible option shall be new text end 89.23new text begin $1,000 greater than the amount of the annual deductible.new text end 89.24new text begin (b) The deductible is subject to an annual increase based on the change in the new text end 89.25new text begin Consumer Price Index (CPI).new text end 89.26    new text begin Subd. 3.new text end new text begin Office visits for nonpreventive care.new text end new text begin The following co-payments shall new text end 89.27new text begin apply for each of the first three office visits per calendar year for nonpreventive care:new text end 89.28new text begin (1) $30 per visit for the $3,000 annual deductible option;new text end 89.29new text begin (2) $40 per visit for the $6,000 annual deductible option;new text end 89.30new text begin (3) $50 per visit for the $9,000 annual deductible option; andnew text end 89.31new text begin (4) $60 per visit for the $12,000 annual deductible option.new text end 89.32new text begin For the fourth and subsequent visits during the calendar year, 80 percent coverage is new text end 89.33new text begin provided under all deductible options, after the deductible is met.new text end 89.34    new text begin Subd. 4.new text end new text begin Preventive care.new text end new text begin One hundred percent coverage is provided for preventive new text end 89.35new text begin care, and no co-payment, coinsurance, or deductible requirements apply.new text end 90.1    new text begin Subd. 5.new text end new text begin Prescription drugs.new text end new text begin A $10 co-payment applies to preferred generic drugs. new text end 90.2new text begin Preferred brand-name drugs require an enrollee payment of 100 percent of the health new text end 90.3new text begin plan's discounted rate.new text end 90.4    new text begin Subd. 6.new text end new text begin Convenience care center visits.new text end new text begin A $20 co-payment applies for the first new text end 90.5new text begin three convenience care center visits during a calendar year. For the fourth and subsequent new text end 90.6new text begin visits during a calendar year, 80 percent coverage is provided after the deductible is met.new text end 90.7    new text begin Subd. 7.new text end new text begin Urgent care center visits.new text end new text begin A $100 co-payment applies for the first urgent new text end 90.8new text begin care center visit during a calendar year. For the second and subsequent visits during a new text end 90.9new text begin calendar year, 80 percent coverage is provided after the deductible is met.new text end 90.10    new text begin Subd. 8.new text end new text begin Emergency room visits.new text end new text begin A $200 co-payment applies for the first new text end 90.11new text begin emergency room visit during a calendar year. For the second and subsequent visits during new text end 90.12new text begin a calendar year, 80 percent coverage is provided after the deductible is met.new text end 90.13    new text begin Subd. 9.new text end new text begin Lab and x-ray; hospital services; ambulance; surgery.new text end new text begin Lab and x-ray new text end 90.14new text begin services, hospital services, ambulance services, and surgery are covered at 80 percent new text end 90.15new text begin after the deductible is met.new text end 90.16    new text begin Subd. 10.new text end new text begin Eyewear.new text end new text begin The health plan pays up to $50 per calendar year for eyewear.new text end 90.17    new text begin Subd. 11.new text end new text begin Maternity.new text end new text begin Maternity, labor and delivery, and postpartum care are not new text end 90.18new text begin covered. One hundred percent coverage is provided for prenatal care and no deductible new text end 90.19new text begin applies.new text end 90.20    new text begin Subd. 12.new text end new text begin Other eligible health care services.new text end new text begin Other eligible health care services new text end 90.21new text begin are covered at 80 percent after the deductible is met.new text end 90.22    new text begin Subd. 13.new text end new text begin Option to remove mental health and substance abuse coverage.new text end 90.23new text begin Enrollees have the option of removing mental health and substance abuse coverage in new text end 90.24new text begin exchange for a reduced premium.new text end 90.25    new text begin Subd. 14.new text end new text begin Option to upgrade prescription drug coverage.new text end new text begin Enrollees have new text end 90.26new text begin the option to upgrade prescription drug coverage to include coverage for preferred new text end 90.27new text begin brand-name drugs with a $50 co-payment and coverage for nonpreferred drugs with a new text end 90.28new text begin $100 co-payment in exchange for an increased premium.new text end 90.29    new text begin Subd. 15.new text end new text begin Out-of-network services.new text end new text begin (a) The out-of-network annual deductible is new text end 90.30new text begin double the in-network annual deductible.new text end 90.31new text begin (b) There is no out-of-pocket maximum for out-of-network services.new text end 90.32new text begin (c) Benefits for out-of-network services are covered at 60 percent after the deductible new text end 90.33new text begin is met.new text end 90.34new text begin (d) The lifetime maximum benefit for out-of-network services is $1,000,000.new text end 90.35    new text begin Subd. 16.new text end new text begin Services not covered.new text end new text begin Services not covered include: custodial care new text end 90.36new text begin or rest care; most dental services; cosmetic services; refractive eye surgery; infertility new text end 91.1new text begin services; and services that are investigational, not medically necessary, or received while new text end 91.2new text begin on military duty.new text end 91.3    Sec. 3. Minnesota Statutes 2010, section 62E.14, is amended by adding a subdivision 91.4to read: 91.5    new text begin Subd. 4f.new text end new text begin Waiver of preexisting conditions for persons covered by healthy new text end 91.6new text begin Minnesota contribution program.new text end new text begin A person may enroll in the comprehensive plan with new text end 91.7new text begin a waiver of the preexisting condition limitation in subdivision 3 if the person is eligible for new text end 91.8new text begin the healthy Minnesota contribution program, and has been denied coverage as described new text end 91.9new text begin under section 256L.031, subdivision 6.new text end 91.10    Sec. 4. Minnesota Statutes 2010, section 62J.04, subdivision 9, is amended to read: 91.11    Subd. 9. Growth limits; federal programs. The commissioners of health and 91.12human services shall establish a rate methodology for Medicare and Medicaid risk-based 91.13contracting with health plan companies that is consistent with statewide growth limits. 91.14The methodology shall be presented for review by the Minnesota Health Care Commission 91.15and the Legislative Commission on Health Care Access prior to the submission of a 91.16waiver request to the Centers for Medicare and Medicaid Services and subsequent 91.17implementation of the methodology. 91.18    Sec. 5. Minnesota Statutes 2010, section 62J.692, subdivision 9, is amended to read: 91.19    Subd. 9. Review of eligible providers. The commissioner and the Medical 91.20Education and Research Costs Advisory Committee may review provider groups included 91.21in the definition of a clinical medical education program to assure that the distribution of 91.22the funds continue to be consistent with the purpose of this section. The results of any 91.23such reviews must be reported to the Legislative Commission on Health Care Accessnew text begin new text end 91.24new text begin chairs and ranking minority members of the legislative committees with jurisdiction over new text end 91.25new text begin health care policy and financenew text end . 91.26    Sec. 6. new text begin [62J.824] BILLING FOR PROCEDURES TO CORRECT MEDICAL new text end 91.27new text begin ERRORS PROHIBITED.new text end 91.28new text begin A health care provider shall not bill a patient, and shall not be reimbursed, for new text end 91.29new text begin any operation, treatment, or other care that is provided to reverse, correct, or otherwise new text end 91.30new text begin minimize the affects of an adverse health care event, as described in section 144.7065, new text end 91.31new text begin subdivisions 2 to 7, for which that health care provider is responsible.new text end 92.1    Sec. 7. Minnesota Statutes 2010, section 62Q.32, is amended to read: 92.262Q.32 LOCAL OMBUDSPERSON. 92.3County board or community health service agencies may establish an office of 92.4ombudsperson to provide a system of consumer advocacy for persons receiving health 92.5care services through a health plan company. The ombudsperson's functions may include, 92.6but are not limited to: 92.7(a) mediation or advocacy on behalf of a person accessing the complaint and appeal 92.8procedures to ensure that necessary medical services are provided by the health plan 92.9company; and 92.10(b) investigation of the quality of services provided to a person and determine the 92.11extent to which quality assurance mechanisms are needed or any other system change 92.12may be needed. The commissioner of health shall make recommendations for funding 92.13these functions including the amount of funding needed and a plan for distribution. The 92.14commissioner shall submit these recommendations to the Legislative Commission on 92.15Health Care Access by January 15, 1996. 92.16    Sec. 8. Minnesota Statutes 2010, section 62U.04, subdivision 3, is amended to read: 92.17    Subd. 3. Provider peer grouping. (a) The commissioner shall develop a peer 92.18grouping system for providers based on a combined measure that incorporates both 92.19provider risk-adjusted cost of care and quality of care, and for specific conditions as 92.20determined by the commissioner. In developing this system, the commissioner shall 92.21consult and coordinate with health care providers, health plan companies, state agencies, 92.22and organizations that work to improve health care quality in Minnesota. For purposes of 92.23the final establishment of the peer grouping system, the commissioner shall not contract 92.24with any private entity, organization, or consortium of entities that has or will have a direct 92.25financial interest in the outcome of the system. 92.26    (b) By no later than October 15, 2010, the commissioner shall disseminate 92.27information to providers on their total cost of care, total resource use, total quality of care, 92.28and the total care results of the grouping developed under this subdivision in comparison 92.29to an appropriate peer group. Any analyses or reports that identify providers may only be 92.30published after the provider has been provided the opportunity by the commissioner to 92.31review the underlying data and submit comments. Providers may be given any data for 92.32which they are the subject of the data. The provider shall have 30 days to review the data 92.33for accuracy and initiate an appeal as specified in paragraph (d). 92.34    (c) By no later than January 1, 2011, the commissioner shall disseminate information 92.35to providers on their condition-specific cost of care, condition-specific resource use, 93.1condition-specific quality of care, and the condition-specific results of the grouping 93.2developed under this subdivision in comparison to an appropriate peer group. Any 93.3analyses or reports that identify providers may only be published after the provider has 93.4been provided the opportunity by the commissioner to review the underlying data and 93.5submit comments. Providers may be given any data for which they are the subject of the 93.6data. The provider shall have 30 days to review the data for accuracy and initiate an 93.7appeal as specified in paragraph (d). 93.8(d) The commissioner shall establish an appeals process to resolve disputes from 93.9providers regarding the accuracy of the data used to develop analyses or reports. When 93.10a provider appeals the accuracy of the data used to calculate the peer grouping system 93.11results, the provider shall: 93.12(1) clearly indicate the reason they believe the data used to calculate the peer group 93.13system results are not accurate; 93.14(2) provide evidence and documentation to support the reason that data was not 93.15accurate; and 93.16(3) cooperate with the commissioner, including allowing the commissioner access to 93.17data necessary and relevant to resolving the dispute. 93.18If a provider does not meet the requirements of this paragraph, a provider's appeal shall be 93.19considered withdrawn. The commissioner shall not publish results for a specific provider 93.20under paragraph (e) or (f) while that provider has an unresolved appeal. 93.21    (e) Beginning January 1, 2011, the commissioner shall, no less than annually, 93.22publish information on providers' total cost, total resource use, total quality, and the results 93.23of the total care portion of the peer grouping process. The results that are published must 93.24be on a risk-adjusted basis. 93.25(f) Beginning March 30, 2011, the commissioner shall no less than annually publish 93.26information on providers' condition-specific cost, condition-specific resource use, and 93.27condition-specific quality, and the results of the condition-specific portion of the peer 93.28grouping process. The results that are published must be on a risk-adjusted basis. 93.29(g) Prior to disseminating data to providers under paragraph (b) or (c) or publishing 93.30information under paragraph (e) or (f), the commissioner shall ensure the scientific 93.31validity and reliability of the results according to the standards described in paragraph (h). 93.32If additional time is needed to establish the scientific validity and reliability of the results, 93.33the commissioner may delay the dissemination of data to providers under paragraph (b) 93.34or (c), or the publication of information under paragraph (e) or (f). If the delay is more 93.35than 60 days, the commissioner shall report in writing to the Legislative Commission on 94.1Health Care Accessnew text begin chairs and ranking minority members of the legislative committees new text end 94.2new text begin with jurisdiction over health care policy and financenew text end the following information: 94.3(1) the reason for the delay; 94.4(2) the actions being taken to resolve the delay and establish the scientific validity 94.5and reliability of the results; and 94.6(3) the new dates by which the results shall be disseminated. 94.7If there is a delay under this paragraph, the commissioner must disseminate the 94.8information to providers under paragraph (b) or (c) at least 90 days before publishing 94.9results under paragraph (e) or (f). 94.10(h) The commissioner's assurance of valid and reliable clinic and hospital peer 94.11grouping performance results shall include, at a minimum, the following: 94.12(1) use of the best available evidence, research, and methodologies; and 94.13(2) establishment of an explicit minimum reliability threshold developed in 94.14collaboration with the subjects of the data and the users of the data, at a level not below 94.15nationally accepted standards where such standards exist. 94.16In achieving these thresholds, the commissioner shall not aggregate clinics that are not 94.17part of the same system or practice group. The commissioner shall consult with and solicit 94.18feedback from representatives of physician clinics and hospitals during the peer grouping 94.19data analysis process to obtain input on the methodological options prior to final analysis 94.20and on the design, development, and testing of provider reports. 94.21    Sec. 9. Minnesota Statutes 2010, section 62U.04, subdivision 9, is amended to read: 94.22    Subd. 9. Uses of information. (a) By no laternew text begin As coverage is offered, sold, issued, new text end 94.23new text begin or renewed, but not less new text end than 12 months after the commissioner publishes the information 94.24in subdivision 3, paragraph (e): 94.25    (1) the commissioner of management and budget shall use the information and 94.26methods developed under subdivision 3 to strengthen incentives for members of the state 94.27employee group insurance program to use high-quality, low-cost providers; 94.28    (2) all political subdivisions, as defined in section 13.02, subdivision 11, that offer 94.29health benefits to their employees must offer plans that differentiate providers on their 94.30cost and quality performance and create incentives for members to use better-performing 94.31providers; 94.32    (3) all health plan companies shall use the information and methods developed 94.33under subdivision 3 to develop products that encourage consumers to use high-quality, 94.34low-cost providers; and 95.1    (4) health plan companies that issue health plans in the individual market or the 95.2small employer market must offer at least one health plan that uses the information 95.3developed under subdivision 3 to establish financial incentives for consumers to choose 95.4higher-quality, lower-cost providers through enrollee cost-sharing or selective provider 95.5networks. 95.6    (b) By January 1, 2011, the commissioner of health shall report to the governor 95.7and the legislature on recommendations to encourage health plan companies to promote 95.8widespread adoption of products that encourage the use of high-quality, low-cost providers. 95.9The commissioner's recommendations may include tax incentives, public reporting of 95.10health plan performance, regulatory incentives or changes, and other strategies. 95.11    Sec. 10. Minnesota Statutes 2010, section 62U.06, subdivision 2, is amended to read: 95.12    Subd. 2. Legislative oversight. Beginning January 15, 2009, the commissioner 95.13of health shall submit to the Legislative Commission on Health Care Accessnew text begin chairs and new text end 95.14new text begin ranking minority members of the legislative committees with jurisdiction over health care new text end 95.15new text begin policy and financenew text end periodic progress reports on the implementation of this chapter and 95.16sections 256B.0751 to 256B.0754. 95.17    Sec. 11. Minnesota Statutes 2010, section 256.01, is amended by adding a subdivision 95.18to read: 95.19    new text begin Subd. 33.new text end new text begin Contingency contract fees.new text end new text begin When the commissioner enters into new text end 95.20new text begin a contingency-based contract for the purpose of recovering medical assistance or new text end 95.21new text begin MinnesotaCare funds, the commissioner may retain that portion of the recovered funds new text end 95.22new text begin equal to the amount of the contingency fee.new text end 95.23    Sec. 12. Minnesota Statutes 2010, section 256.01, is amended by adding a subdivision 95.24to read: 95.25    new text begin Subd. 34.new text end new text begin Elimination of certain provider reporting requirements; sunset of new text end 95.26new text begin new requirements.new text end new text begin (a) Notwithstanding any other law, rule, or provision to the contrary, new text end 95.27new text begin effective July 1, 2012, the commissioner shall cease collecting from health care providers new text end 95.28new text begin and purchasers all reports and data related to health care costs, quality, utilization, access, new text end 95.29new text begin patient encounters, and disease surveillance and public health, and related to provider new text end 95.30new text begin licensure, monitoring, finances, and regulation, unless the reports or data are necessary for new text end 95.31new text begin federal compliance. For purposes of this subdivision, the term "health care providers and new text end 95.32new text begin purchasers" has the meaning provided in section 62J.03, subdivision 8, except that it also new text end 95.33new text begin includes nursing homes, health plan companies as defined in section 62Q.01, subdivision new text end 96.1new text begin 4, and managed care and county-based purchasing plans delivering services under sections new text end 96.2new text begin 256B.69 and 256B.692.new text end 96.3new text begin (b) The commissioner shall present to the 2012 legislature draft legislation to repeal, new text end 96.4new text begin effective July 1, 2012, the provider reporting requirements identified under paragraph (a) new text end 96.5new text begin that are not necessary for federal compliance.new text end 96.6new text begin (c) The commissioner may establish new provider reporting requirements to take new text end 96.7new text begin effect on or after July 1, 2012. These new reporting requirements must sunset five years new text end 96.8new text begin from their effective date, unless they are renewed by the commissioner. All new provider new text end 96.9new text begin reporting requirements and requests for their renewal shall not take effect unless they new text end 96.10new text begin are enacted in state law.new text end 96.11    Sec. 13. Minnesota Statutes 2010, section 256.969, subdivision 2b, is amended to read: 96.12    Subd. 2b. Operating payment rates. In determining operating payment rates for 96.13admissions occurring on or after the rate year beginning January 1, 1991, and every two 96.14years after, or more frequently as determined by the commissioner, the commissioner 96.15shall obtain operating data from an updated base year and establish operating payment 96.16rates per admission for each hospital based on the cost-finding methods and allowable 96.17costs of the Medicare program in effect during the base year. Rates under the general 96.18assistance medical care, medical assistance, and MinnesotaCare programs shall not be 96.19rebased to more current data on January 1, 1997, January 1, 2005, for the first 24 months 96.20of the rebased period beginning January 1, 2009. For the first 24 months of the rebased 96.21period beginning January 1, 2011, rates shall not be rebased, except that a Minnesota 96.22long-term hospital shall be rebased effective January 1, 2011, based on its most recent 96.23Medicare cost report ending on or before September 1, 2008, with the provisions under 96.24subdivisions 9 and 23, based on the rates in effect on December 31, 2010. For subsequent 96.25rate setting periods in which the base years are updated, a Minnesota long-term hospital's 96.26base year shall remain within the same period as other hospitals. Effective January 1, 96.272013, rates shall be rebased at full valuenew text begin Rates must not be rebased to more current data new text end 96.28new text begin for the first six months of the rebased period beginning January 1, 2013new text end . The base year 96.29operating payment rate per admission is standardized by the case mix index and adjusted 96.30by the hospital cost index, relative values, and disproportionate population adjustment. 96.31The cost and charge data used to establish operating rates shall only reflect inpatient 96.32services covered by medical assistance and shall not include property cost information 96.33and costs recognized in outlier payments. 97.1    Sec. 14. Minnesota Statutes 2010, section 256.969, is amended by adding a subdivision 97.2to read: 97.3    new text begin Subd. 31.new text end new text begin Initiatives to reduce incidence of low birth-weight.new text end new text begin The commissioner new text end 97.4new text begin shall require hospitals located in the seven-county metropolitan area, as a condition of new text end 97.5new text begin contract, to implement strategies to reduce the incidence of low birth-weight in geographic new text end 97.6new text begin areas identified by the commissioner as having a higher than average incidence of low new text end 97.7new text begin birth-weight, with special emphasis on areas within a one-mile radius of the hospital. new text end 97.8new text begin These strategies may focus on smoking prevention and cessation, ensuring that pregnant new text end 97.9new text begin women get adequate nutrition, and addressing demographic, social, and environmental new text end 97.10new text begin risk factors. The strategies must coordinate health care with social services and the new text end 97.11new text begin local public health system, and offer patient education through appropriate means. new text end 97.12new text begin The commissioner shall require hospitals to submit proposed initiatives for approval new text end 97.13new text begin to the commissioner by January 1, 2012, and the commissioner shall require hospitals new text end 97.14new text begin to implement approved initiatives by July 1, 2012. The commissioner shall evaluate new text end 97.15new text begin the strategies adopted to reduce low birth-weight, and shall require hospitals to submit new text end 97.16new text begin outcome and other data necessary for the evaluation.new text end 97.17    Sec. 15. Minnesota Statutes 2010, section 256B.04, subdivision 18, is amended to read: 97.18    Subd. 18. Applications for medical assistance. new text begin (a) new text end The state agency may 97.19take applications for medical assistance and conduct eligibility determinations for 97.20MinnesotaCare enrollees. 97.21    new text begin (b) The commissioner of human services shall modify the Minnesota health care new text end 97.22new text begin programs application form to add a question asking applicants: "Are you a United States new text end 97.23new text begin military veteran?"new text end 97.24    Sec. 16. Minnesota Statutes 2010, section 256B.05, is amended by adding a 97.25subdivision to read: 97.26    new text begin Subd. 5.new text end new text begin Technical assistance.new text end new text begin The commissioner shall provide technical assistance new text end 97.27new text begin to county agencies in processing complex medical assistance applications, including but new text end 97.28new text begin not limited to applications for long-term care services. The commissioner shall provide new text end 97.29new text begin this technical assistance using existing financial resources.new text end 97.30    Sec. 17. Minnesota Statutes 2010, section 256B.055, subdivision 15, is amended to 97.31read: 97.32    Subd. 15. Adults without children. new text begin (a) new text end Medical assistance may be paid for a 97.33person who is: 98.1(1) at least age 21 and under age 65; 98.2(2) not pregnant; 98.3(3) not entitled to Medicare Part A or enrolled in Medicare Part B under Title XVIII 98.4of the Social Security Act; 98.5(4) not an adult in a family with children as defined in section 256L.01, subdivision 98.63a; and 98.7(5) not described in another subdivision of this section. 98.8new text begin (b) If the federal government eliminates the federal Medicaid match or reduces the new text end 98.9new text begin federal Medicaid matching rate beyond any adjustment required as part of the annual new text end 98.10new text begin recalculation of the state's overall Medicaid matching rate for persons eligible under this new text end 98.11new text begin subdivision, the commissioner shall eliminate coverage for persons enrolled under this new text end 98.12new text begin subdivision and suspend new enrollment under this subdivision effective on the date new text end 98.13new text begin of the elimination or reduction.new text end 98.14new text begin EFFECTIVE DATE.new text end new text begin The amendments to this section are effective the day new text end 98.15new text begin following final enactment and expire January 1, 2014.new text end 98.16    Sec. 18. Minnesota Statutes 2010, section 256B.056, subdivision 3, is amended to read: 98.17    Subd. 3. Asset limitations for individuals and families. (a) To be eligible for 98.18medical assistance, a person must not individually own more than $3,000 in assets, or if a 98.19member of a household with two family members, husband and wife, or parent and child, 98.20the household must not own more than $6,000 in assets, plus $200 for each additional 98.21legal dependent. In addition to these maximum amounts, an eligible individual or family 98.22may accrue interest on these amounts, but they must be reduced to the maximum at the 98.23time of an eligibility redetermination. The accumulation of the clothing and personal 98.24needs allowance according to section 256B.35 must also be reduced to the maximum at 98.25the time of the eligibility redetermination. The value of assets that are not considered in 98.26determining eligibility for medical assistance is the value of those assets excluded under 98.27the supplemental security income program for aged, blind, and disabled persons, with 98.28the following exceptions: 98.29    (1) household goods and personal effects are not considered; 98.30    (2) capital and operating assets of a trade or business that the local agency determines 98.31are necessary to the person's ability to earn an income are not considered; 98.32    (3) motor vehicles are excluded to the same extent excluded by the supplemental 98.33security income program; 98.34    (4) assets designated as burial expenses are excluded to the same extent excluded by 98.35the supplemental security income program. Burial expenses funded by annuity contracts 99.1or life insurance policies must irrevocably designate the individual's estate as contingent 99.2beneficiary to the extent proceeds are not used for payment of selected burial expenses; and 99.3    (5) effective upon federal approval, for a person who no longer qualifies as an 99.4employed person with a disability due to loss of earnings, assets allowed while eligible 99.5for medical assistance under section 256B.057, subdivision 9, are not considered for 12 99.6months, beginning with the first month of ineligibility as an employed person with a 99.7disability, to the extent that the person's total assets remain within the allowed limits of 99.8section 256B.057, subdivision 9, paragraph (c). 99.9    (b) No asset limit shall apply to persons eligible under section , subdivision 99.1015. 99.11new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012.new text end 99.12    Sec. 19. Minnesota Statutes 2010, section 256B.056, subdivision 4, is amended to read: 99.13    Subd. 4. Income. (a) To be eligible for medical assistance, a person eligible under 99.14section 256B.055, subdivisions 7, 7a, and 12, may have income up to 100 percent of 99.15the federal poverty guidelines. Effective January 1, 2000, and each successive January, 99.16recipients of supplemental security income may have an income up to the supplemental 99.17security income standard in effect on that date. 99.18    (b) To be eligible for medical assistance, families and children may have an income 99.19up to 133-1/3 percent of the AFDC income standard in effect under the July 16, 1996, 99.20AFDC state plan. Effective July 1, 2000, the base AFDC standard in effect on July 16, 99.211996, shall be increased by three percent. 99.22    (c) Effective July 1, 2002, to be eligible for medical assistance, families and children 99.23may have an income up to 100 percent of the federal poverty guidelines for the family size. 99.24    (d) To be eligible for medical assistance under section 256B.055, subdivision 15, a 99.25person may have an income up to 75 percent of federal poverty guidelines for the family 99.26size. 99.27    (e)new text begin (d)new text end In computing income to determine eligibility of persons under paragraphs 99.28(a) to (d)new text begin (c)new text end who are not residents of long-term care facilities, the commissioner shall 99.29disregard increases in income as required by Public Law Numbers 94-566, section 503; 99.3099-272; and 99-509. Veterans aid and attendance benefits and Veterans Administration 99.31unusual medical expense payments are considered income to the recipient. 99.32new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012.new text end 99.33    Sec. 20. Minnesota Statutes 2010, section 256B.06, subdivision 4, is amended to read: 100.1    Subd. 4. Citizenship requirements. (a) Eligibility for medical assistance is limited 100.2to citizens of the United States, qualified noncitizens as defined in this subdivision, and 100.3other persons residing lawfully in the United States. Citizens or nationals of the United 100.4States must cooperate in obtaining satisfactory documentary evidence of citizenship or 100.5nationality according to the requirements of the federal Deficit Reduction Act of 2005, 100.6Public Law 109-171. 100.7(b) "Qualified noncitizen" means a person who meets one of the following 100.8immigration criteria: 100.9(1) admitted for lawful permanent residence according to United States Code, title 8; 100.10(2) admitted to the United States as a refugee according to United States Code, 100.11title 8, section 1157; 100.12(3) granted asylum according to United States Code, title 8, section 1158; 100.13(4) granted withholding of deportation according to United States Code, title 8, 100.14section 1253(h); 100.15(5) paroled for a period of at least one year according to United States Code, title 8, 100.16section 1182(d)(5); 100.17(6) granted conditional entrant status according to United States Code, title 8, 100.18section 1153(a)(7); 100.19(7) determined to be a battered noncitizen by the United States Attorney General 100.20according to the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, 100.21title V of the Omnibus Consolidated Appropriations Bill, Public Law 104-200; 100.22(8) is a child of a noncitizen determined to be a battered noncitizen by the United 100.23States Attorney General according to the Illegal Immigration Reform and Immigrant 100.24Responsibility Act of 1996, title V, of the Omnibus Consolidated Appropriations Bill, 100.25Public Law 104-200; or 100.26(9) determined to be a Cuban or Haitian entrant as defined in section 501(e) of Public 100.27Law 96-422, the Refugee Education Assistance Act of 1980. 100.28(c) All qualified noncitizens who were residing in the United States before August 100.2922, 1996, who otherwise meet the eligibility requirements of this chapter, are eligible for 100.30medical assistance with federal financial participation. 100.31(d) All qualified noncitizens who entered the United States on or after August 22, 100.321996, and who otherwise meet the eligibility requirements of this chapter, are eligible for 100.33medical assistance with federal financial participation through November 30, 1996. 100.34Beginning December 1, 1996, qualified noncitizens who entered the United States 100.35on or after August 22, 1996, and who otherwise meet the eligibility requirements of this 101.1chapter are eligible for medical assistance with federal participation for five years if they 101.2meet one of the following criteria: 101.3(i) refugees admitted to the United States according to United States Code, title 8, 101.4section 1157; 101.5(ii) persons granted asylum according to United States Code, title 8, section 1158; 101.6(iii) persons granted withholding of deportation according to United States Code, 101.7title 8, section 1253(h); 101.8(iv) veterans of the United States armed forces with an honorable discharge for 101.9a reason other than noncitizen status, their spouses and unmarried minor dependent 101.10children; or 101.11(v) persons on active duty in the United States armed forces, other than for training, 101.12their spouses and unmarried minor dependent children. 101.13Beginning December 1, 1996, qualified noncitizens who do not meet one of the 101.14criteria in items (i) to (v) are eligible for medical assistance without federal financial 101.15participation as described in paragraph (j). 101.16Notwithstanding paragraph (j), beginning July 1, 2010, children and pregnant 101.17women who are noncitizens described in paragraph (b) or (e), are eligible for medical 101.18assistance with federal financial participation as provided by the federal Children's Health 101.19Insurance Program Reauthorization Act of 2009, Public Law 111-3. 101.20(e) Noncitizens who are not qualified noncitizens as defined in paragraph (b), who 101.21are lawfully present in the United States, as defined in Code of Federal Regulations, title 101.228, section 103.12, and who otherwise meet the eligibility requirements of this chapter, are 101.23eligible for medical assistance under clauses (1) to (3). These individuals must cooperate 101.24with the United States Citizenship and Immigration Services to pursue any applicable 101.25immigration status, including citizenship, that would qualify them for medical assistance 101.26with federal financial participation. 101.27(1) Persons who were medical assistance recipients on August 22, 1996, are eligible 101.28for medical assistance with federal financial participation through December 31, 1996. 101.29(2) Beginning January 1, 1997, persons described in clause (1) are eligible for 101.30medical assistance without federal financial participation as described in paragraph (j). 101.31(3) Beginning December 1, 1996, persons residing in the United States prior to 101.32August 22, 1996, who were not receiving medical assistance and persons who arrived on 101.33or after August 22, 1996, are eligible for medical assistance without federal financial 101.34participation as described in paragraph (j). 101.35(f) Nonimmigrants who otherwise meet the eligibility requirements of this chapter 101.36are eligible for the benefits as provided in paragraphs (g) to (i). For purposes of this 102.1subdivision, a "nonimmigrant" is a person in one of the classes listed in United States 102.2Code, title 8, section 1101(a)(15). 102.3(g) Payment shall also be made for care and services that are furnished to noncitizens, 102.4regardless of immigration status, who otherwise meet the eligibility requirements of 102.5this chapter, if such care and services are necessary for the treatment of an emergency 102.6medical condition, except for organ transplants and related care and services and routine 102.7prenatal care. 102.8(h) For purposes of this subdivision, the term "emergency medical condition" means 102.9a medical condition that meets the requirements of United States Code, title 42, section 102.101396b(v). 102.11new text begin (i)(1) Notwithstanding paragraph (h), services that are necessary for the treatment of new text end 102.12new text begin an emergency medical condition are limited to the following:new text end 102.13new text begin (i) services delivered in an emergency room that are directly related to the treatment new text end 102.14new text begin of an emergency medical condition;new text end 102.15new text begin (ii) services delivered in an inpatient hospital setting following admission from an new text end 102.16new text begin emergency room or clinic for an acute emergency condition; andnew text end 102.17new text begin (iii) follow-up services that are directly related to the original service provided to new text end 102.18new text begin treat the emergency medical condition and that are covered by the global payment made new text end 102.19new text begin to the provider.new text end 102.20    new text begin (2) Services for the treatment of emergency medical conditions do not include:new text end 102.21new text begin (i) services delivered in an emergency room or inpatient setting to treat a new text end 102.22new text begin nonemergency condition;new text end 102.23new text begin (ii) organ and stem cell transplants and related care;new text end 102.24new text begin (iii) services for routine prenatal care;new text end 102.25new text begin (iv) continuing care, including long-term care, nursing facility services, home health new text end 102.26new text begin care, adult day care, day training, or supportive living services;new text end 102.27new text begin (v) elective surgery;new text end 102.28new text begin (vi) outpatient prescription drugs, unless the drugs are administered or dispensed as new text end 102.29new text begin part of an emergency room visit;new text end 102.30new text begin (vii) preventative health care and family planning services;new text end 102.31new text begin (viii) dialysis;new text end 102.32new text begin (ix) chemotherapy or therapeutic radiation services;new text end 102.33new text begin (x) rehabilitation services;new text end 102.34new text begin (xi) physical, occupational, or speech therapy;new text end 102.35new text begin (xii) transportation services;new text end 102.36new text begin (xiii) case management;new text end 103.1new text begin (xiv) prosthetics, orthotics, durable medical equipment, or medical supplies;new text end 103.2new text begin (xv) dental services;new text end 103.3new text begin (xvi) hospice care;new text end 103.4new text begin (xvii) audiology services and hearing aids;new text end 103.5new text begin (xviii) podiatry services;new text end 103.6new text begin (xix) chiropractic services;new text end 103.7new text begin (xx) immunizations;new text end 103.8new text begin (xxi) vision services and eyeglasses;new text end 103.9new text begin (xxii) waiver services;new text end 103.10new text begin (xxiii) individualized education programs; ornew text end 103.11new text begin (xxiv) chemical dependency treatment.new text end 103.12(i)new text begin (j)new text end Beginning July 1, 2009, pregnant noncitizens who are undocumented, 103.13nonimmigrants, or lawfully present as designated in paragraph (e) and who are not 103.14covered by a group health plan or health insurance coverage according to Code of 103.15Federal Regulations, title 42, section 457.310, and who otherwise meet the eligibility 103.16requirements of this chapter, are eligible for medical assistance through the period of 103.17pregnancy, including labor and delivery, and 60 days postpartum, to the extent federal 103.18funds are available under title XXI of the Social Security Act, and the state children's 103.19health insurance program. 103.20(j)new text begin (k)new text end Qualified noncitizens as described in paragraph (d), and all other noncitizens 103.21lawfully residing in the United States as described in paragraph (e), who are ineligible 103.22for medical assistance with federal financial participation and who otherwise meet the 103.23eligibility requirements of chapter 256B and of this paragraph, are eligible for medical 103.24assistance without federal financial participation. Qualified noncitizens as described 103.25in paragraph (d) are only eligible for medical assistance without federal financial 103.26participation for five years from their date of entry into the United States. 103.27(k)new text begin (l)new text end Beginning October 1, 2003, persons who are receiving care and rehabilitation 103.28services from a nonprofit center established to serve victims of torture and are otherwise 103.29ineligible for medical assistance under this chapter are eligible for medical assistance 103.30without federal financial participation. These individuals are eligible only for the period 103.31during which they are receiving services from the center. Individuals eligible under this 103.32paragraph shall not be required to participate in prepaid medical assistance. 103.33    Sec. 21. Minnesota Statutes 2010, section 256B.0625, is amended by adding a 103.34subdivision to read: 104.1    new text begin Subd. 1b.new text end new text begin Care coordination services provided through pediatric hospitals.new text end 104.2new text begin (a) Medical assistance covers care coordination services provided by certain pediatric new text end 104.3new text begin hospitals to children with high-cost medical conditions and children at risk of recurrent new text end 104.4new text begin hospitalization for acute or chronic illnesses. There must be Level I and Level II pediatric new text end 104.5new text begin care coordination services.new text end 104.6new text begin (b) Level I pediatric care coordination services are provided by advanced practice new text end 104.7new text begin nurses employed by or under contract with pediatric hospitals that have a neonatal new text end 104.8new text begin intensive care unit and are either recipients of payments to support the training of residents new text end 104.9new text begin from an approved graduate medical residency program under United States Code, title new text end 104.10new text begin 42, section 256e, or the major pediatric teaching hospital affiliate of the University of new text end 104.11new text begin Minnesota Medical School, and that meet the criteria in this subdivision.new text end 104.12new text begin (c) The services in paragraph (b) must be available through in-home video telehealth new text end 104.13new text begin management and other methods, and must be designed to improve patient outcomes new text end 104.14new text begin and reduce unnecessary hospital and emergency room utilization. The services must new text end 104.15new text begin streamline communication, reduce redundancy, and eliminate unnecessary documentation new text end 104.16new text begin through the use of a Web-accessible, uniform document that contains critical patient care new text end 104.17new text begin management information, and which is accessible to all providers with patient consent. new text end 104.18new text begin The commissioner shall develop the uniform document and associated Web site and shall new text end 104.19new text begin implement procedures to assess patient outcomes and evaluate the effectiveness of the new text end 104.20new text begin care coordination services provided under this subdivision.new text end 104.21new text begin (d) Medical assistance also covers, as durable medical equipment, computers, new text end 104.22new text begin webcams, and other technology necessary to allow in-home video telehealth management.new text end 104.23new text begin (e) For purposes of paragraph (b), a child has a high-cost medical condition if new text end 104.24new text begin inpatient hospital expenses for that child related to complex or chronic illnesses or new text end 104.25new text begin conditions for the most recent calendar year exceeded $100,000, or if the expenses for that new text end 104.26new text begin child are projected to exceed $100,000 for the current calendar year. For purposes of this new text end 104.27new text begin subdivision, a child is at risk of recurrent hospitalization if the child was hospitalized three new text end 104.28new text begin or more times for acute or chronic illness in the most recent calendar year.new text end 104.29new text begin (f) For purposes of paragraph (b), "care coordination" means collaboration between new text end 104.30new text begin the advanced practice nurse and primary care physicians and specialists to manage new text end 104.31new text begin care and reduce hospitalizations, patient case management, development of medical new text end 104.32new text begin management plans for chronic illnesses and recurrent acute illnesses, oversight and new text end 104.33new text begin coordination of all aspects of care in partnership with families, organization of medical new text end 104.34new text begin information into a summary of critical information, coordination and appropriate new text end 104.35new text begin sequencing of tests and multiple appointments, information and assistance with accessing new text end 104.36new text begin resources, and telephone triage for acute illnesses or problems.new text end 105.1new text begin (g) The commissioner shall adjust managed care and county-based purchasing plan new text end 105.2new text begin capitation rates to reflect savings from the coverage of this service.new text end 105.3new text begin (h) Level II pediatric care coordination services are provided by registered nurses new text end 105.4new text begin employed by or under contract with a pediatric hospital that has been designated as new text end 105.5new text begin an essential community provider under section 62Q.19, subdivision 1, clause (4), and new text end 105.6new text begin has been a recipient of payments to support the training of residents from an approved new text end 105.7new text begin graduate medical residency program pursuant to United States Code, title 42, section new text end 105.8new text begin 256e, and that meets the following criteria: new text end 105.9new text begin (1) the services must be provided through telehealth management and other methods, new text end 105.10new text begin be available on a regular schedule seven days per week, and be designed to provide new text end 105.11new text begin collaboration in patient care as provided by the patient's family, primary care providers, new text end 105.12new text begin and the hospital and specialized physicians;new text end 105.13new text begin (2) for purposes of this paragraph, a child has a high-cost medical condition if the new text end 105.14new text begin child has a serious chronic physical disability caused by a congenital anomaly, birth new text end 105.15new text begin injury or traumatic injury, complications which can be expected to cause further injury, new text end 105.16new text begin hospitalization, or death, but that can be effectively addressed through ongoing family new text end 105.17new text begin and primary care supported by communication of ongoing care information and care new text end 105.18new text begin coordination; and new text end 105.19new text begin (3) for purposes of this paragraph, "care coordination" means the ready availability new text end 105.20new text begin of telehealth management services to support collaboration through a registered nurse new text end 105.21new text begin between a child's family, the primary care professional that is available to care for the new text end 105.22new text begin child, and appropriate professionals to address urgent questions about and minimize the new text end 105.23new text begin consequences of medical complications, develop medical management plans for complex new text end 105.24new text begin conditions, and avoid serious health consequences and hospitalizations to treat such new text end 105.25new text begin complications.new text end 105.26new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012.new text end 105.27    Sec. 22. Minnesota Statutes 2010, section 256B.0625, is amended by adding a 105.28subdivision to read: 105.29    new text begin Subd. 3q.new text end new text begin Evidence-based childbirth program.new text end new text begin (a) The commissioner shall new text end 105.30new text begin implement a program to reduce the number of elective inductions of labor prior to 39 new text end 105.31new text begin weeks' gestation. In this subdivision, the term "elective induction of labor" means the new text end 105.32new text begin use of artificial means to stimulate labor in a woman without the presence of a medical new text end 105.33new text begin condition affecting the woman or the child that makes the onset of labor a medical new text end 105.34new text begin necessity. The program must promote the implementation of policies within hospitals new text end 105.35new text begin providing services to recipients of medical assistance or MinnesotaCare that prohibit the new text end 106.1new text begin use of elective inductions prior to 39 weeks' gestation, and adherence to such policies by new text end 106.2new text begin the attending providers.new text end 106.3new text begin (b) For all births covered by medical assistance or MinnesotaCare on or after new text end 106.4new text begin January 1, 2012, a payment for professional services associated with the delivery of a new text end 106.5new text begin child in a hospital must not be made unless the provider has submitted information about new text end 106.6new text begin the nature of the labor and delivery including any induction of labor that was performed new text end 106.7new text begin in conjunction with that specific birth. The information must be on a form prescribed by new text end 106.8new text begin the commissioner.new text end 106.9new text begin (c) The requirements in paragraph (b) must not apply to deliveries performed new text end 106.10new text begin at a hospital that has policies and processes in place that have been approved by the new text end 106.11new text begin commissioner which prohibit elective inductions prior to 39 weeks' gestation. A process new text end 106.12new text begin for review of hospital induction policies must be established by the commissioner and new text end 106.13new text begin review of policies must occur at the discretion of the commissioner. The commissioner's new text end 106.14new text begin decision to approve or rescind approval must include verification and review of items new text end 106.15new text begin including, but not limited to:new text end 106.16new text begin (1) policies that prohibit use of elective inductions for gestation less than 39 weeks;new text end 106.17new text begin (2) policies that encourage providers to document and communicate with patients a new text end 106.18new text begin final expected date of delivery by 20 weeks' gestation that includes data from ultrasound new text end 106.19new text begin measurements as applicable;new text end 106.20new text begin (3) policies that encourage patient education regarding elective inductions, and new text end 106.21new text begin requires documentation of the processes used to educate patients;new text end 106.22new text begin (4) ongoing quality improvement review as determined by the commissioner; andnew text end 106.23new text begin (5) any data that has been collected by the commissioner.new text end 106.24new text begin (d) All hospitals must report annually to the commissioner induction information new text end 106.25new text begin for all births that were covered by medical assistance or MinnesotaCare in a format and new text end 106.26new text begin manner to be established by the commissioner.new text end 106.27new text begin (e) The commissioner at any time may choose not to implement or may discontinue new text end 106.28new text begin any or all aspects of the program if the commissioner is able to determine that hospitals new text end 106.29new text begin representing at least 90 percent of births covered by medical assistance or MinnesotaCare new text end 106.30new text begin have approved policies in place.new text end 106.31new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012.new text end 106.32    Sec. 23. Minnesota Statutes 2010, section 256B.0625, subdivision 8e, is amended to 106.33read: 107.1    Subd. 8e. Chiropractic services. Payment for chiropractic services is limited to 107.2one annual evaluation and 12new text begin 24new text end visits per year unless prior authorization of a greater 107.3number of visits is obtained. 107.4    Sec. 24. Minnesota Statutes 2010, section 256B.0625, is amended by adding a 107.5subdivision to read: 107.6    new text begin Subd. 8f.new text end new text begin Acupuncture services.new text end new text begin Medical assistance covers acupuncture, as defined new text end 107.7new text begin in section 147B.01, subdivision 3, only when provided by a licensed acupuncturist or by new text end 107.8new text begin another Minnesota licensed practitioner for whom acupuncture is within the practitioner's new text end 107.9new text begin scope of practice and who has specific acupuncture training or credentialing.new text end 107.10    Sec. 25. Minnesota Statutes 2010, section 256B.0625, subdivision 13e, is amended to 107.11read: 107.12    Subd. 13e. Payment rates. (a) The basis for determining the amount of payment 107.13shall be the lower of the actual acquisition costs of the drugs plus a fixed dispensing fee; 107.14the maximum allowable cost set by the federal government or by the commissioner plus 107.15the fixed dispensing fee; or the usual and customary price charged to the public. The 107.16amount of payment basis must be reduced to reflect all discount amounts applied to the 107.17charge by any provider/insurer agreement or contract for submitted charges to medical 107.18assistance programs. The net submitted charge may not be greater than the patient liability 107.19for the service. The pharmacy dispensing fee shall be $3.65, except that the dispensing fee 107.20for intravenous solutions which must be compounded by the pharmacist shall be $8 per 107.21bag, $14 per bag for cancer chemotherapy products, and $30 per bag for total parenteral 107.22nutritional products dispensed in one liter quantities, or $44 per bag for total parenteral 107.23nutritional products dispensed in quantities greater than one liter. Actual acquisition cost 107.24includes quantity and other special discounts except time and cash discounts. Effective 107.25July 1, 2009, The actual acquisition cost of a drug shall be estimated by the commissioner, 107.26at average wholesale price minus 15 percent. The actual acquisition cost of antihemophilic 107.27factor drugs shall be estimated at the average wholesale price minus 30 percent. new text begin wholesale new text end 107.28new text begin acquisition cost plus four percent for independently owned pharmacies located in a new text end 107.29new text begin designated rural area within Minnesota, and at wholesale acquisition cost plus two percent new text end 107.30new text begin for all other pharmacies. A pharmacy is "independently owned" if it is one of four or new text end 107.31new text begin fewer pharmacies under the same ownership nationally. A "designated rural area" means new text end 107.32new text begin an area defined as a small rural area or isolated rural area according to the four-category new text end 107.33new text begin classification of the Rural Urban Commuting Area system developed for the United States new text end 107.34new text begin Health Resources and Services Administration. Wholesale acquisition cost is defined as new text end 108.1new text begin the manufacturer's list price for a drug or biological to wholesalers or direct purchasers new text end 108.2new text begin in the United States, not including prompt pay or other discounts, rebates, or reductions new text end 108.3new text begin in price, for the most recent month for which information is available, as reported in new text end 108.4new text begin wholesale price guides or other publications of drug or biological pricing data. new text end The 108.5maximum allowable cost of a multisource drug may be set by the commissioner and it 108.6shall be comparable to, but no higher than, the maximum amount paid by other third-party 108.7payors in this state who have maximum allowable cost programs. Establishment of the 108.8amount of payment for drugs shall not be subject to the requirements of the Administrative 108.9Procedure Act. 108.10    (b) An additional dispensing fee of $.30 may be added to the dispensing fee paid 108.11to pharmacists for legend drug prescriptions dispensed to residents of long-term care 108.12facilities when a unit dose blister card system, approved by the department, is used. Under 108.13this type of dispensing system, the pharmacist must dispense a 30-day supply of drug. 108.14The National Drug Code (NDC) from the drug container used to fill the blister card must 108.15be identified on the claim to the department. The unit dose blister card containing the 108.16drug must meet the packaging standards set forth in Minnesota Rules, part 6800.2700, 108.17that govern the return of unused drugs to the pharmacy for reuse. The pharmacy provider 108.18will be required to credit the department for the actual acquisition cost of all unused 108.19drugs that are eligible for reuse. Over-the-counter medications must be dispensed in the 108.20manufacturer's unopened package. The commissioner may permit the drug clozapine to be 108.21dispensed in a quantity that is less than a 30-day supply. 108.22    (c) Whenever a maximum allowable cost has been set for a multisource drug, 108.23payment shall be on the basis of the maximum allowable cost established by the 108.24commissioner unless prior authorization for the brand name product has been granted 108.25according to the criteria established by the Drug Formulary Committee as required by 108.26subdivision 13f, paragraph (a), and the prescriber has indicated "dispense as written" on 108.27the prescription in a manner consistent with section 151.21, subdivision 2. 108.28    (d) The basis for determining the amount of payment for drugs administered in an 108.29outpatient setting shall be the lower of the usual and customary cost submitted by the 108.30provider or the amount established for Medicare by the new text begin 106 percent of the average sales new text end 108.31new text begin price as determined by the new text end United States Department of Health and Human Services 108.32pursuant to title XVIII, section 1847a of the federal Social Security Act.new text begin If average sales new text end 108.33new text begin price is unavailable, the amount of payment must be lower of the usual and customary cost new text end 108.34new text begin submitted by the provider or the wholesale acquisition cost.new text end 108.35    (e) The commissioner may negotiate lower reimbursement rates for specialty 108.36pharmacy products than the rates specified in paragraph (a). The commissioner may 109.1require individuals enrolled in the health care programs administered by the department 109.2to obtain specialty pharmacy products from providers with whom the commissioner has 109.3negotiated lower reimbursement rates. Specialty pharmacy products are defined as those 109.4used by a small number of recipients or recipients with complex and chronic diseases 109.5that require expensive and challenging drug regimens. Examples of these conditions 109.6include, but are not limited to: multiple sclerosis, HIV/AIDS, transplantation, hepatitis 109.7C, growth hormone deficiency, Crohn's Disease, rheumatoid arthritis, and certain forms 109.8of cancer. Specialty pharmaceutical products include injectable and infusion therapies, 109.9biotechnology drugs, new text begin antihemophilic factor products, new text end high-cost therapies, and therapies 109.10that require complex care. The commissioner shall consult with the formulary committee 109.11to develop a list of specialty pharmacy products subject to this paragraph. In consulting 109.12with the formulary committee in developing this list, the commissioner shall take into 109.13consideration the population served by specialty pharmacy products, the current delivery 109.14system and standard of care in the state, and access to care issues. The commissioner shall 109.15have the discretion to adjust the reimbursement rate to prevent access to care issues. 109.16(f) Home infusion therapy services provided by home infusion therapy pharmacies 109.17must be paid at rates according to subdivision 8d. 109.18new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2011, or upon federal new text end 109.19new text begin approval, whichever is later.new text end 109.20    Sec. 26. Minnesota Statutes 2010, section 256B.0625, subdivision 13h, is amended to 109.21read: 109.22    Subd. 13h. Medication therapy management services. (a) Medical assistance 109.23and general assistance medical care cover medication therapy management services for 109.24a recipient taking fournew text begin threenew text end or more prescriptions to treat or prevent twonew text begin onenew text end or more 109.25chronic medical conditions, ornew text begin ;new text end a recipient with a drug therapy problem that is identifiednew text begin new text end 109.26new text begin by the commissioner or identified by a pharmacist and approved by the commissioner;new text end or 109.27prior authorized by the commissioner that has resulted or is likely to result in significant 109.28nondrug program costs. The commissioner may cover medical therapy management 109.29services under MinnesotaCare if the commissioner determines this is cost-effective. For 109.30purposes of this subdivision, "medication therapy management" means the provision 109.31of the following pharmaceutical care services by a licensed pharmacist to optimize the 109.32therapeutic outcomes of the patient's medications: 109.33    (1) performing or obtaining necessary assessments of the patient's health status; 109.34    (2) formulating a medication treatment plan; 110.1    (3) monitoring and evaluating the patient's response to therapy, including safety 110.2and effectiveness; 110.3    (4) performing a comprehensive medication review to identify, resolve, and prevent 110.4medication-related problems, including adverse drug events; 110.5    (5) documenting the care delivered and communicating essential information to 110.6the patient's other primary care providers; 110.7    (6) providing verbal education and training designed to enhance patient 110.8understanding and appropriate use of the patient's medications; 110.9    (7) providing information, support services, and resources designed to enhance 110.10patient adherence with the patient's therapeutic regimens; and 110.11    (8) coordinating and integrating medication therapy management services within the 110.12broader health care management services being provided to the patient. 110.13Nothing in this subdivision shall be construed to expand or modify the scope of practice of 110.14the pharmacist as defined in section 151.01, subdivision 27. 110.15    (b) To be eligible for reimbursement for services under this subdivision, a pharmacist 110.16must meet the following requirements: 110.17    (1) have a valid license issued under chapter 151; 110.18    (2) have graduated from an accredited college of pharmacy on or after May 1996, or 110.19completed a structured and comprehensive education program approved by the Board of 110.20Pharmacy and the American Council of Pharmaceutical Education for the provision and 110.21documentation of pharmaceutical care management services that has both clinical and 110.22didactic elements; 110.23    (3) be practicing in an ambulatory care setting as part of a multidisciplinary team or 110.24have developed a structured patient care process that is offered in a private or semiprivate 110.25patient care area that is separate from the commercial business that also occurs in the 110.26setting, or in home settings, excludingnew text begin includingnew text end long-term care andnew text begin settings,new text end group homes, 110.27if the service is ordered by the provider-directed care coordination teamnew text begin and facilities new text end 110.28new text begin providing assisted living servicesnew text end ; and 110.29    (4) make use of an electronic patient record system that meets state standards. 110.30    (c) For purposes of reimbursement for medication therapy management services, 110.31the commissioner may enroll individual pharmacists as medical assistance and general 110.32assistance medical care providers. The commissioner may also establish contact 110.33requirements between the pharmacist and recipient, including limiting the number of 110.34reimbursable consultations per recipient. 110.35(d) If there are no pharmacists who meet the requirements of paragraph (b) practicing 110.36within a reasonable geographic distance of the patient, a pharmacist who meets the 111.1requirements may provide the services via two-way interactive video. Reimbursement 111.2shall be at the same rates and under the same conditions that would otherwise apply to 111.3the services provided. To qualify for reimbursement under this paragraph, the pharmacist 111.4providing the services must meet the requirements of paragraph (b), and must be located 111.5within an ambulatory care setting approved by the commissioner. The patient must also 111.6be located within an ambulatory care setting approved by the commissioner. Services 111.7provided under this paragraph may not be transmitted into the patient's residence. 111.8(e) The commissioner shall establish a pilot project for an intensive medication 111.9therapy management program for patients identified by the commissioner with multiple 111.10chronic conditions and a high number of medications who are at high risk of preventable 111.11hospitalizations, emergency room use, medication complications, and suboptimal 111.12treatment outcomes due to medication-related problems. For purposes of the pilot 111.13project, medication therapy management services may be provided in a patient's home 111.14or community setting, in addition to other authorized settings. The commissioner may 111.15waive existing payment policies and establish special payment rates for the pilot project. 111.16The pilot project must be designed to produce a net savings to the state compared to the 111.17estimated costs that would otherwise be incurred for similar patients without the program. 111.18The pilot project must begin by January 1, 2010, and end June 30, 2012. 111.19new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2011.new text end 111.20    Sec. 27. Minnesota Statutes 2010, section 256B.0625, subdivision 17, is amended to 111.21read: 111.22    Subd. 17. Transportation costs. (a) Medical assistance covers medical 111.23transportation costs incurred solely for obtaining emergency medical care or transportation 111.24costs incurred by eligible persons in obtaining emergency or nonemergency medical 111.25care when paid directly to an ambulance company, common carrier, or other recognized 111.26providers of transportation services. Medical transportation must be provided by: 111.27(1) an ambulance, as defined in section 144E.001, subdivision 2; 111.28(2) special transportation; or 111.29(3) common carrier including, but not limited to, bus, taxicab, other commercial 111.30carrier, or private automobile. 111.31(b) Medical assistance covers special transportation, as defined in Minnesota Rules, 111.32part 9505.0315, subpart 1, item F, if the recipient has a physical or mental impairment that 111.33would prohibit the recipient from safely accessing and using a bus, taxi, other commercial 111.34transportation, or private automobile. 112.1The commissioner may use an order by the recipient's attending physician to certify that 112.2the recipient requires special transportation services. Special transportation providers shall 112.3perform driver-assisted services for eligible individuals. Driver-assisted service includes 112.4passenger pickup at and return to the individual's residence or place of business, assistance 112.5with admittance of the individual to the medical facility, and assistance in passenger 112.6securement or in securing of wheelchairs or stretchers in the vehicle. Special transportation 112.7providers must obtain written documentation from the health care service provider who 112.8is serving the recipient being transported, identifying the time that the recipient arrived. 112.9Special transportation providers may not bill for separate base rates for the continuation of 112.10a trip beyond the original destination. Special transportation providers must take recipients 112.11to the nearest appropriate health care provider, using the most direct route. The minimum 112.12medical assistance reimbursement rates for special transportation services are: 112.13(1) (i) $17 for the base rate and $1.35 per mile for special transportation services to 112.14eligible persons who need a wheelchair-accessible van; 112.15(ii) $11.50 for the base rate and $1.30 per mile for special transportation services to 112.16eligible persons who do not need a wheelchair-accessible van; and 112.17(iii) $60 for the base rate and $2.40 per mile, and an attendant rate of $9 per trip, for 112.18special transportation services to eligible persons who need a stretcher-accessible vehicle; 112.19(2) the base rates for special transportation services in areas defined under RUCA 112.20to be super rural shall be equal to the reimbursement rate established in clause (1) plus 112.2111.3 percent; and 112.22(3) for special transportation services in areas defined under RUCA to be rural 112.23or super rural areas: 112.24(i) for a trip equal to 17 miles or less, mileage reimbursement shall be equal to 125 112.25percent of the respective mileage rate in clause (1); and 112.26(ii) for a trip between 18 and 50 miles, mileage reimbursement shall be equal to 112.27112.5 percent of the respective mileage rate in clause (1). 112.28(c) For purposes of reimbursement rates for special transportation services under 112.29paragraph (b), the zip code of the recipient's place of residence shall determine whether 112.30the urban, rural, or super rural reimbursement rate applies. 112.31(d) For purposes of this subdivision, "rural urban commuting area" or "RUCA" 112.32means a census-tract based classification system under which a geographical area is 112.33determined to be urban, rural, or super rural. 112.34new text begin (e) Effective for services provided on or after July 1, 2011, nonemergency new text end 112.35new text begin transportation rates, including special transportation, taxi, and other commercial carriers, new text end 112.36new text begin are reduced 4.5 percent. Payments made to managed care plans and county-based new text end 113.1new text begin purchasing plans must be reduced for services provided on or after January 1, 2012, new text end 113.2new text begin to reflect this reduction.new text end 113.3    Sec. 28. Minnesota Statutes 2010, section 256B.0625, subdivision 17a, is amended to 113.4read: 113.5    Subd. 17a. Payment for ambulance services. new text begin (a) new text end Medical assistance covers 113.6ambulance services. Providers shall bill ambulance services according to Medicare 113.7criteria. Nonemergency ambulance services shall not be paid as emergencies. Effective 113.8for services rendered on or after July 1, 2001, medical assistance payments for ambulance 113.9services shall be paid at the Medicare reimbursement rate or at the medical assistance 113.10payment rate in effect on July 1, 2000, whichever is greater. 113.11new text begin (b) Effective for services provided on or after July 1, 2011, ambulance services new text end 113.12new text begin payment rates are reduced 4.5 percent. Payments made to managed care plans and new text end 113.13new text begin county-based purchasing plans must be reduced for services provided on or after January new text end 113.14new text begin 1, 2012, to reflect this reduction.new text end 113.15    Sec. 29. Minnesota Statutes 2010, section 256B.0625, subdivision 18, is amended to 113.16read: 113.17    Subd. 18. Bus or taxicab transportation. To the extent authorized by rule of the 113.18state agency, medical assistance covers costs of the most appropriate and cost-effective 113.19form of transportation incurred by any ambulatory eligible person for obtaining 113.20nonemergency medical care. 113.21    Sec. 30. Minnesota Statutes 2010, section 256B.0625, is amended by adding a 113.22subdivision to read: 113.23    new text begin Subd. 25b.new text end new text begin Authorization with third-party liability.new text end new text begin (a) Except as otherwise new text end 113.24new text begin allowed under this subdivision or required under federal or state regulations, the new text end 113.25new text begin commissioner must not consider a request for authorization of a service when the recipient new text end 113.26new text begin has coverage from a third-party payer unless the provider requesting authorization has new text end 113.27new text begin made a good faith effort to receive payment or authorization from the third-party payer. new text end 113.28new text begin A good faith effort is established by supplying with the authorization request to the new text end 113.29new text begin commissioner the following:new text end 113.30new text begin (1) a determination of payment for the service from the third-party payer, a new text end 113.31new text begin determination of authorization for the service from the third-party payer, or a verification new text end 113.32new text begin of noncoverage of the service by the third-party payer; andnew text end 114.1new text begin (2) the information or records required by the department to document the reason for new text end 114.2new text begin the determination or to validate noncoverage from the third-party payer.new text end 114.3new text begin (b) A provider requesting authorization for services covered by Medicare is not new text end 114.4new text begin required to bill Medicare before requesting authorization from the commissioner if the new text end 114.5new text begin provider has reason to believe that a service covered by Medicare is not eligible for new text end 114.6new text begin payment. The provider must document that, because of recent claim experiences with new text end 114.7new text begin Medicare or because of written communication from Medicare, coverage is not available new text end 114.8new text begin for the service.new text end 114.9new text begin (c) Authorization is not required if a third-party payer has made payment that is new text end 114.10new text begin equal to or greater than 60 percent of the maximum payment amount for the service new text end 114.11new text begin allowed under medical assistance.new text end 114.12    Sec. 31. Minnesota Statutes 2010, section 256B.0625, subdivision 31a, is amended to 114.13read: 114.14    Subd. 31a. Augmentative and alternative communication systems. (a) Medical 114.15assistance covers augmentative and alternative communication systems consisting of 114.16electronic or nonelectronic devices and the related components necessary to enable a 114.17person with severe expressive communication limitations to produce or transmit messages 114.18or symbols in a manner that compensates for that disability. 114.19(b) Until the volume of systems purchased increases to allow a discount price, the 114.20commissioner shall reimburse augmentative and alternative communication manufacturers 114.21and vendors at the manufacturer's suggested retail price for augmentative and alternative 114.22communication systems and related components. The commissioner shall separately 114.23reimburse providers for purchasing and integrating individual communication systems 114.24which are unavailable as a package from an augmentative and alternative communication 114.25vendor.new text begin Augmentative and alternative communication systems must be paid the lower new text end 114.26new text begin of the: new text end 114.27new text begin (1) submitted charge; ornew text end 114.28new text begin (2)(i) manufacturer's suggested retail price minus 20 percent for providers that are new text end 114.29new text begin manufacturers of augmentative and alternative communication systems; ornew text end 114.30new text begin (ii) manufacturer's invoice charge plus 20 percent for providers that are not new text end 114.31new text begin manufacturers of augmentative and alternative communication systems.new text end 114.32(c) Reimbursement rates established by this purchasing program are not subject to 114.33Minnesota Rules, part 9505.0445, item S or T. 115.1    Sec. 32. Minnesota Statutes 2010, section 256B.0625, is amended by adding a 115.2subdivision to read: 115.3    new text begin Subd. 55.new text end new text begin Payment for multiple services provided on same day.new text end new text begin The new text end 115.4new text begin commissioner shall not prohibit payment, including any supplemental payments, for new text end 115.5new text begin mental health services or dental services provided to a patient by a clinic or health care new text end 115.6new text begin professional solely because the mental health services or dental services were provided on new text end 115.7new text begin the same day as other covered health care services furnished by the same provider.new text end 115.8    Sec. 33. Minnesota Statutes 2010, section 256B.0625, is amended by adding a 115.9subdivision to read: 115.10    new text begin Subd. 56.new text end new text begin Medical care coordination.new text end new text begin (a) Medical assistance covers in-reach new text end 115.11new text begin community-based care coordination that is performed in a hospital emergency department new text end 115.12new text begin as an eligible procedure under a state health care program or private insurance for a new text end 115.13new text begin frequent user.new text end 115.14new text begin (b) Reimbursement must be made in 15-minute increments under current Medicaid new text end 115.15new text begin mental health social work reimbursement methodology and allowed for up to 60 days new text end 115.16new text begin posthospital discharge based upon the specific identified emergency department visit or new text end 115.17new text begin inpatient admitting event. A frequent user who is participating in care coordination within new text end 115.18new text begin a health care home framework is ineligible for reimbursement under this subdivision. new text end 115.19new text begin Eligible in-reach care coordinators must hold a minimum of a bachelor's degree in social new text end 115.20new text begin work, public health, corrections, or related field. The commissioner shall submit any new text end 115.21new text begin necessary application for waivers to the Centers for Medicare and Medicaid Services to new text end 115.22new text begin implement this subdivision.new text end 115.23new text begin (c) A frequent user is defined as an individual who:new text end 115.24new text begin (1) has frequented the hospital emergency department for services three or more new text end 115.25new text begin times in the previous six consecutive months;new text end 115.26new text begin (2) would benefit from the provision of in-reach community-based services; andnew text end 115.27new text begin (3) has two or more of the following risk factors:new text end 115.28new text begin (i) on one or more occasions within the last 24 months, the individual was diagnosed new text end 115.29new text begin with a chronic or life-threatening condition that requires management of symptoms, new text end 115.30new text begin medications, health care, or changes in lifestyle or risk-related behaviors that may new text end 115.31new text begin include, but are not limited to, HIV/AIDS, hepatitis, diabetes, heart disease, hypertension, new text end 115.32new text begin emphysema, asthma, or cancer;new text end 115.33new text begin (ii) on one or more occasions within the last 24 months, the individual was diagnosed new text end 115.34new text begin or, in the judgment of an emergency department physician, would likely be diagnosed, new text end 116.1new text begin if provided a mental assessment, with an Axis I or II mental disorder identified in the new text end 116.2new text begin Diagnostic and Statistical Manual of Mental Disorders;new text end 116.3new text begin (iii) on one or more occasions within the last 24 months, the individual was new text end 116.4new text begin diagnosed or, in the judgment of an emergency department physician, would likely be new text end 116.5new text begin diagnosed, if provided an assessment, with a substance use problem that interferes with new text end 116.6new text begin the individual's health or appropriate utilization of health services; ornew text end 116.7new text begin (iv) the individual is currently experiencing homelessness. "Homelessness" means new text end 116.8new text begin lacking a fixed, regular, or adequate nighttime residence or a primary nighttime residence new text end 116.9new text begin that is a supervised publicly or privately operated shelter designed to provide temporary new text end 116.10new text begin living accommodations or a public or private place not designed for, or ordinarily used new text end 116.11new text begin as, regular sleeping accommodations for human beings.new text end 116.12new text begin (d) Any hospital choosing to participate in medical care coordination under this new text end 116.13new text begin subdivision must, upon request by the commissioner of human services, make available new text end 116.14new text begin program utilization data. Frequent users who are enrolled in a program must track:new text end 116.15new text begin (1) the total number of program participants in the frequent user program for a new text end 116.16new text begin defined period of time established by the commissioner;new text end 116.17new text begin (2) the total number of program participants and what form of health care coverage new text end 116.18new text begin they had at the time of enrollment and the number of beneficiaries who did not remain new text end 116.19new text begin enrolled in the program for at least two months;new text end 116.20new text begin (3) the frequency of emergency department visits during the 12 months prior to new text end 116.21new text begin enrollment in the program and associated costs to the hospital;new text end 116.22new text begin (4) the frequency of emergency department visits during the 12 months after new text end 116.23new text begin program enrollment and the associated costs to the hospital;new text end 116.24new text begin (5) the total number of inpatient admissions during the 12 months immediately new text end 116.25new text begin preceding enrollment and the associated costs to the hospital;new text end 116.26new text begin (6) the total number of inpatient admissions during the 12 months after enrollment in new text end 116.27new text begin the program and the associated costs to the hospital;new text end 116.28new text begin (7) the total number of inpatient days during the 12 months immediately preceding new text end 116.29new text begin enrollment and the associated costs to the hospital; andnew text end 116.30new text begin (8) the total number of inpatient days during the 12 months after program enrollment new text end 116.31new text begin and the associated costs to the hospital.new text end 116.32new text begin (e) For the purposes of this subdivision, "in-reach community-based care new text end 116.33new text begin coordination" means the practice of a community-based worker with training, knowledge, new text end 116.34new text begin skills, and ability to access a continuum of services, including housing, transportation, new text end 116.35new text begin chemical and mental health treatment, employment, and peer support services, by working new text end 116.36new text begin with an organization's staff to transition an individual back into the individual's living new text end 117.1new text begin environment. In-reach community-based care coordination includes working with the new text end 117.2new text begin individual during their discharge and for up to a defined amount of time in the individual's new text end 117.3new text begin living environment, reducing the individual's need for readmittance.new text end 117.4    Sec. 34. Minnesota Statutes 2010, section 256B.0625, is amended by adding a 117.5subdivision to read: 117.6    new text begin Subd. 57.new text end new text begin Payment for Part B Medicare crossover claims.new text end new text begin Effective for services new text end 117.7new text begin provided on or after January 1, 2012, medical assistance payment for an enrollee's cost new text end 117.8new text begin sharing associated with Medicare Part B is limited to an amount up to the medical new text end 117.9new text begin assistance total allowed, when the medical assistance rate exceeds the amount paid by new text end 117.10new text begin Medicare.new text end 117.11new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012.new text end 117.12    Sec. 35. Minnesota Statutes 2010, section 256B.0625, is amended by adding a 117.13subdivision to read: 117.14    new text begin Subd. 58.new text end new text begin Early and periodic screening, diagnosis, and treatment services.new text end 117.15new text begin Medical assistance covers early and periodic screening, diagnosis, and treatment services new text end 117.16new text begin (EPSDT). The payment amount for a complete EPSDT screening shall not exceed the rate new text end 117.17new text begin established per Minnesota Rules, part 9505.0445, item M, effective October 1, 2010.new text end 117.18    Sec. 36. Minnesota Statutes 2010, section 256B.0625, is amended by adding a 117.19subdivision to read: 117.20    new text begin Subd. 59.new text end new text begin Services provided by advanced dental therapists and dental new text end 117.21new text begin therapists.new text end new text begin Medical assistance covers services provided by advanced dental therapists new text end 117.22new text begin and dental therapists when provided within the scope of practice identified in sections new text end 117.23new text begin 150A.105 and 150A.106.new text end 117.24    Sec. 37. Minnesota Statutes 2010, section 256B.0625, is amended by adding a 117.25subdivision to read: 117.26    new text begin Subd. 60.new text end new text begin Payment for noncovered services.new text end new text begin (a) Except when specifically new text end 117.27new text begin prohibited by the commissioner or federal law, a provider may seek payment from the new text end 117.28new text begin recipient for services not eligible for payment under the medical assistance program when new text end 117.29new text begin the provider, prior to delivering the service, reviews and considers all other available new text end 117.30new text begin covered alternatives with the recipient and obtains a signed acknowledgment from the new text end 117.31new text begin recipient of the potential of the recipient's liability. The signed acknowledgment must be new text end 117.32new text begin in a form approved by the commissioner.new text end 118.1    new text begin (b) Conditions under which a provider must not request payment from the recipient new text end 118.2new text begin include, but are not limited to:new text end 118.3    new text begin (1) a service that requires prior authorization, unless authorization has been denied new text end 118.4new text begin as not medically necessary and all other therapeutic alternatives have been reviewed;new text end 118.5    new text begin (2) a service for which payment has been denied for reasons relating to billing new text end 118.6new text begin requirements;new text end 118.7    new text begin (3) standard shipping or delivery and setup of medical equipment or medical new text end 118.8new text begin supplies;new text end 118.9    new text begin (4) services that are included in the recipient's long-term care per diem;new text end 118.10    new text begin (5) the recipient is enrolled in the restricted recipient program and the provider is new text end 118.11new text begin one of a provider type designated for the recipient's health care services; andnew text end 118.12    new text begin (6) the noncovered service is a prescriptive drug identified by the commissioner as new text end 118.13new text begin having the potential for abuse and overuse, except where payment by the recipient is new text end 118.14new text begin specifically approved by the commissioner on the date of service based upon compelling new text end 118.15new text begin evidence supplied by the prescribing provider that establishes medical necessity for that new text end 118.16new text begin particular drug.new text end 118.17    new text begin (c) The payment requested from recipients for noncovered services under this new text end 118.18new text begin subdivision must not exceed the provider's usual and customary charge for the actual new text end 118.19new text begin service received by the recipient. A recipient must not be billed for the difference between new text end 118.20new text begin what medical assistance paid for the service or would pay for a less costly alternative new text end 118.21new text begin service.new text end 118.22    Sec. 38. Minnesota Statutes 2010, section 256B.0631, subdivision 1, is amended to 118.23read: 118.24    Subdivision 1. Co-paymentsnew text begin Cost-sharingnew text end . (a) Except as provided in subdivision 118.252, the medical assistance benefit plan shall include the following co-paymentsnew text begin cost-sharingnew text end 118.26for all recipients, effective for services provided on or after October 1, 2003, and before 118.27January 1, 2009new text begin July 1, 2011new text end : 118.28    (1) $3 per nonpreventive visitnew text begin , except as provided in paragraph (c)new text end . For purposes 118.29of this subdivision, a visit means an episode of service which is required because of 118.30a recipient's symptoms, diagnosis, or established illness, and which is delivered in an 118.31ambulatory setting by a physician or physician ancillary, chiropractor, podiatrist, nurse 118.32midwife, advanced practice nurse, audiologist, optician, or optometrist; 118.33    (2) $3 for eyeglasses; 118.34    (3) $6new text begin $3.50new text end for nonemergency visits to a hospital-based emergency roomnew text begin , except new text end 118.35new text begin that this co-payment shall be increased to $20 upon federal approvalnew text end ; and 119.1    (4) $3 per brand-name drug prescription and $1 per generic drug prescription, 119.2subject to a $12 per month maximum for prescription drug co-payments. No co-payments 119.3shall apply to antipsychotic drugs when used for the treatment of mental illness.new text begin ;new text end 119.4new text begin (5) a family deductible equal to the maximum amount allowed under Code of new text end 119.5new text begin Federal Regulations, title 42, part 447.54; andnew text end 119.6    (b) Except as provided in subdivision 2, the medical assistance benefit plan shall 119.7include the following co-payments for all recipients, effective for services provided on 119.8or after January 1, 2009: 119.9    (1) $3.50 for nonemergency visits to a hospital-based emergency room; 119.10    (2) $3 per brand-name drug prescription and $1 per generic drug prescription, 119.11subject to a $7 per month maximum for prescription drug co-payments. No co-payments 119.12shall apply to antipsychotic drugs when used for the treatment of mental illness; and 119.13    (3)new text begin (6)new text end for individuals identified by the commissioner with income at or below 100 119.14percent of the federal poverty guidelines, total monthly co-paymentsnew text begin cost-sharingnew text end must 119.15not exceed five percent of family income. For purposes of this paragraph, family income 119.16is the total earned and unearned income of the individual and the individual's spouse, if 119.17the spouse is enrolled in medical assistance and also subject to the five percent limit on 119.18co-paymentsnew text begin cost-sharingnew text end . 119.19    (c)new text begin (b)new text end Recipients of medical assistance are responsible for all co-payments new text begin and new text end 119.20new text begin deductibles new text end in this subdivision. 119.21new text begin (c) Effective January 1, 2012, or upon federal approval, whichever is later, the new text end 119.22new text begin following co-payments for nonpreventive visits shall apply to providers included in new text end 119.23new text begin provider peer grouping:new text end 119.24new text begin (1) $3 for visits to providers whose average, risk-adjusted, total annual cost of new text end 119.25new text begin care per medical assistance enrollee is at the 60th percentile or lower for providers of new text end 119.26new text begin the same type;new text end 119.27new text begin (2) $6 for visits to providers whose average, risk-adjusted, total annual cost of care new text end 119.28new text begin per medical assistance enrollee is greater than the 60th percentile but does not exceed the new text end 119.29new text begin 80th percentile for providers of the same type; andnew text end 119.30new text begin (3) $10 for visits to providers whose average, risk-adjusted, total annual cost of new text end 119.31new text begin care per medical assistance enrollee is greater than the 80th percentile for providers of new text end 119.32new text begin the same type.new text end 119.33new text begin Each managed care and county-based purchasing plan shall calculate the average, new text end 119.34new text begin risk-adjusted, total annual cost of care for providers under this paragraph using a new text end 119.35new text begin methodology approved by the commissioner. The commissioner shall develop a new text end 120.1new text begin methodology for calculating the average, risk-adjusted, total annual cost of care for new text end 120.2new text begin fee-for-service providers.new text end 120.3new text begin (d) The commissioner shall seek any federal waivers and approvals necessary to new text end 120.4new text begin increase the co-payment for nonemergency visits to a hospital-based emergency room new text end 120.5new text begin under paragraph (a), clause (3), and to implement paragraph (c).new text end 120.6    Sec. 39. Minnesota Statutes 2010, section 256B.0631, subdivision 2, is amended to 120.7read: 120.8    Subd. 2. Exceptions. Co-paymentsnew text begin and deductiblesnew text end shall be subject to the following 120.9exceptions: 120.10(1) children under the age of 21; 120.11(2) pregnant women for services that relate to the pregnancy or any other medical 120.12condition that may complicate the pregnancy; 120.13(3) recipients expected to reside for at least 30 days in a hospital, nursing home, or 120.14intermediate care facility for the developmentally disabled; 120.15(4) recipients receiving hospice care; 120.16(5) 100 percent federally funded services provided by an Indian health service; 120.17(6) emergency services; 120.18(7) family planning services; 120.19(8) services that are paid by Medicare, resulting in the medical assistance program 120.20paying for the coinsurance and deductible; and 120.21(9) co-payments that exceed one per day per provider for nonpreventive visits, 120.22eyeglasses, and nonemergency visits to a hospital-based emergency room. 120.23    Sec. 40. Minnesota Statutes 2010, section 256B.0631, subdivision 3, is amended to 120.24read: 120.25    Subd. 3. Collection. (a) The medical assistance reimbursement to the provider shall 120.26be reduced by the amount of the co-paymentnew text begin or deductiblenew text end , except that reimbursements 120.27shall not be reduced: 120.28    (1) once a recipient has reached the $12 per month maximum or the $7 per month 120.29maximum effective January 1, 2009, for prescription drug co-payments; or 120.30    (2) for a recipient identified by the commissioner under 100 percent of the federal 120.31poverty guidelines who has met their monthly five percent co-paymentnew text begin cost-sharingnew text end limit. 120.32    (b) The provider collects the co-paymentnew text begin or deductiblenew text end from the recipient. Providers 120.33may not deny services to recipients who are unable to pay the co-paymentnew text begin or deductiblenew text end . 121.1    (c) Medical assistance reimbursement to fee-for-service providers and payments to 121.2managed care plans shall not be increased as a result of the removal of co-payments new text begin or new text end 121.3new text begin deductibles new text end effective on or after January 1, 2009. 121.4    Sec. 41. Minnesota Statutes 2010, section 256B.0644, is amended to read: 121.5256B.0644 REIMBURSEMENT UNDER OTHER STATE HEALTH CARE 121.6PROGRAMS. 121.7    (a) A vendor of medical care, as defined in section 256B.02, subdivision 7, and a 121.8health maintenance organization, as defined in chapter 62D, must participate as a provider 121.9or contractor in the medical assistance program, general assistance medical care program, 121.10and MinnesotaCare as a condition of participating as a provider in health insurance plans 121.11and programs or contractor for state employees established under section 43A.18, the 121.12public employees insurance program under section 43A.316, for health insurance plans 121.13offered to local statutory or home rule charter city, county, and school district employees, 121.14the workers' compensation system under section 176.135, and insurance plans provided 121.15through the Minnesota Comprehensive Health Association under sections 62E.01 to 121.1662E.19 . The limitations on insurance plans offered to local government employees shall 121.17not be applicable in geographic areas where provider participation is limited by managed 121.18care contracts with the Department of Human Services. 121.19    (b) For providers other than health maintenance organizations, participation in the 121.20medical assistance program means that: 121.21     (1) the provider accepts new medical assistance, general assistance medical care, 121.22and MinnesotaCare patients; 121.23    (2) for providers other than dental service providers, at least 20 percent of the 121.24provider's patients are covered by medical assistance, general assistance medical care, 121.25and MinnesotaCare as their primary source of coverage; or 121.26    (3) for dental service providers, at least ten percent of the provider's patients are 121.27covered by medical assistance, general assistance medical care, and MinnesotaCare as 121.28their primary source of coverage, or the provider accepts new medical assistance and 121.29MinnesotaCare patients who are children with special health care needs. For purposes 121.30of this section, "children with special health care needs" means children up to age 18 121.31who: (i) require health and related services beyond that required by children generally; 121.32and (ii) have or are at risk for a chronic physical, developmental, behavioral, or emotional 121.33condition, including: bleeding and coagulation disorders; immunodeficiency disorders; 121.34cancer; endocrinopathy; developmental disabilities; epilepsy, cerebral palsy, and other 121.35neurological diseases; visual impairment or deafness; Down syndrome and other genetic 122.1disorders; autism; fetal alcohol syndrome; and other conditions designated by the 122.2commissioner after consultation with representatives of pediatric dental providers and 122.3consumers. 122.4    (c) Patients seen on a volunteer basis by the provider at a location other than 122.5the provider's usual place of practice may be considered in meeting the participation 122.6requirement in this section. The commissioner shall establish participation requirements 122.7for health maintenance organizations. The commissioner shall provide lists of participating 122.8medical assistance providers on a quarterly basis to the commissioner of management and 122.9budget, the commissioner of labor and industry, and the commissioner of commerce. Each 122.10of the commissioners shall develop and implement procedures to exclude as participating 122.11providers in the program or programs under their jurisdiction those providers who do 122.12not participate in the medical assistance program. The commissioner of management 122.13and budget shall implement this section through contracts with participating health and 122.14dental carriers. 122.15    (d) For purposes of paragraphs (a) and (b), participation in the general assistance 122.16medical care program applies only to pharmacy providers. 122.17    new text begin (e) A provider described in section 256B.76, subdivision 5, may limit the eligibility new text end 122.18new text begin of new medical assistance, general assistance medical care, and MinnesotaCare patients new text end 122.19new text begin for specific categories of rehabilitative services, if medical assistance, general assistance new text end 122.20new text begin medical care, and MinnesotaCare patients served by the provider in the aggregate exceed new text end 122.21new text begin 30 percent of the provider's overall patient population.new text end 122.22    Sec. 42. Minnesota Statutes 2010, section 256B.0751, subdivision 1, is amended to 122.23read: 122.24    Subdivision 1. Definitions. (a) For purposes of sections 256B.0751 to 256B.0753, 122.25the following definitions apply. 122.26    (b) "Commissioner" means the commissioner of human services. 122.27    (c) "Commissioners" means the commissioner of humans services and the 122.28commissioner of health, acting jointly. 122.29    (d) "Health plan company" has the meaning provided in section 62Q.01, subdivision 122.304. 122.31    (e) "Personal clinician" means a physician licensed under chapter 147, a physician 122.32assistant licensed and practicing under chapter 147A, or new text begin a mental health professional new text end 122.33new text begin licensed under section 245.462, subdivision 18, clauses (1) to (6); or 245.4871, subdivision new text end 122.34new text begin 27, clauses (1) to (6), or new text end an advanced practice nurse licensed and registered to practice 122.35under chapter 148. 123.1    (f) "State health care program" means the medical assistance, MinnesotaCare, and 123.2general assistance medical care programs. 123.3    Sec. 43. Minnesota Statutes 2010, section 256B.0751, subdivision 2, is amended to 123.4read: 123.5    Subd. 2. Development and implementation of standards. (a) By July 1, 2009, 123.6the commissioners of health and human services shall develop and implement standards 123.7of certification for health care homes for state health care programs. In developing these 123.8standards, the commissioners shall consider existing standards developed by national 123.9independent accrediting and medical home organizations. The standards developed by the 123.10commissioners must meet the following criteria: 123.11    (1) emphasize, enhance, and encourage the use of primary care, and include the use 123.12of primary care physicians, advanced practice nurses, and new text begin mental health professionals, new text end 123.13new text begin and new text end physician assistants as personal cliniciansnew text begin but permitting multidisciplinary teams of new text end 123.14new text begin other health professionalsnew text end ; 123.15    (2) focus on delivering high-quality, efficient, and effective health care servicesnew text begin new text end 123.16new text begin and providing, arranging, or coordinating related social and public health services and new text end 123.17new text begin other services that directly affect an individual's health, access to services, quality and new text end 123.18new text begin outcomes, and patient satisfactionnew text end ; 123.19    (3) encourage patient-centered carenew text begin and servicesnew text end , including active participation by 123.20the patient and family or a legal guardian, or a health care agent as defined in chapter 123.21145C, as appropriate in decision making and care plan development, and providing care 123.22that is appropriate to the patient's race, ethnicity, and language; 123.23    (4) provide patients with a consistent, ongoing contact with a personal clinician or 123.24team of clinical professionals to ensure continuous and appropriate care for the patient's 123.25condition; 123.26    (5) ensure that health care homes develop and maintain appropriate comprehensive 123.27care new text begin and wellness new text end plans for their patients with complex or chronic conditions, including an 123.28assessment of health risks andnew text begin ,new text end chronic conditionsnew text begin , and socioeconomic factors affecting new text end 123.29new text begin health and treatmentnew text end ; 123.30    (6) enable and encourage utilization of a range of qualified health care professionalsnew text begin new text end 123.31new text begin and other professionals or services related to the health and treatment of the patientnew text end , 123.32including dedicated care coordinators, in a manner that enables providers to practice to 123.33the fullest extent of their license; 123.34    (7) focus initially on patients who have or are at risk of developing chronic health 123.35conditions; 124.1    (8) incorporate measures of quality, resource use, cost of care, and patient 124.2experiencenew text begin , with appropriate adjustments for socioeconomic factorsnew text end ; 124.3    (9) ensure the use of health information technology and systematic follow-up, 124.4including the use of patient registries; and 124.5    (10) encourage the use of scientifically based health care, patient decision-making 124.6aids that provide patients with information about treatment new text begin and service new text end options and their 124.7associated benefits, risks, costs, and comparative outcomes, and other clinical decision 124.8support tools. 124.9    (b) In developing these standards, the commissioners shall consult with national 124.10and local organizations working on health care home models, physicians, relevant 124.11state agencies, health plan companies, hospitals, other providers, patients, and patient 124.12advocates. The commissioners may satisfy this requirement by continuing the provider 124.13directed care coordination advisory committee. 124.14    (c) For the purposes of developing and implementing these standards, the 124.15commissioners may use the expedited rulemaking process under section 14.389. 124.16    Sec. 44. Minnesota Statutes 2010, section 256B.0751, subdivision 3, is amended to 124.17read: 124.18    Subd. 3. Requirements for clinicians certified as health care homes. (a) A 124.19personal clinician ornew text begin ,new text end a primary care clinicnew text begin , or community mental health center eligible for new text end 124.20new text begin payment under section 256B.0625, subdivision 5,new text end may be certified as a health care home. 124.21If a primary care clinic new text begin or mental health center new text end is certified, all of the primary care clinic's 124.22new text begin or mental health center's new text end cliniciansnew text begin who may provide care to persons enrolled with the new text end 124.23new text begin health care homenew text end must meet the criteria of a health care home. In order to be certified as 124.24a health care home, a clinician ornew text begin ,new text end clinicnew text begin , or community mental health centernew text end must meet 124.25the standards set by the commissioners in accordance with this section. Certification as 124.26a health care home is voluntary. In order to maintain their status as health care homes, 124.27clinicians or clinics must renew their certification annually. 124.28    (b) Clinicians ornew text begin ,new text end clinicsnew text begin , or mental health centersnew text end certified as health care homes must 124.29offer their health care home services to all their patients with complex or chronic health 124.30conditions who are interested in participation. 124.31    (c) Health care homes must participate in the health care home collaborative 124.32established under subdivision 5. 124.33    Sec. 45. Minnesota Statutes 2010, section 256B.0751, subdivision 4, is amended to 124.34read: 125.1    Subd. 4. Alternative modelsnew text begin and waivers of requirementsnew text end . new text begin (a) new text end Nothing in this 125.2section shall preclude the continued development of existing medical or health care 125.3home projects currently operating or under development by the commissioner of human 125.4services or preclude the commissioner from establishing alternative models and payment 125.5mechanisms for persons who are enrolled in integrated Medicare and Medicaid programs 125.6under section 256B.69, subdivisions 23 and 28, are enrolled in managed care long-term 125.7care programs under section 256B.69, subdivision 6b, are dually eligible for Medicare and 125.8medical assistance, are in the waiting period for Medicare, or who have other primary 125.9coverage. 125.10new text begin (b) The commissioner of health shall modify the health care homes application new text end 125.11new text begin for certification to add an item allowing an applicant to indicate status as a federally new text end 125.12new text begin qualified health center or a federally qualified health center look-alike, as defined in new text end 125.13new text begin section 145.9269, subdivision 1. Effective July 1, 2012, the commissioner shall certify as new text end 125.14new text begin a health care home each applicant that indicates this status on a completed application for new text end 125.15new text begin certification, without requiring the applicant to meet the standards in Minnesota Rules, new text end 125.16new text begin part 4764.0040. In order to retain certification, a federally qualified health center or new text end 125.17new text begin federally qualified health center look-alike certified under this paragraph must seek annual new text end 125.18new text begin recertification by submitting a letter of intent stating its desire to be recertified but is not new text end 125.19new text begin required to meet the standards for recertification in Minnesota Rules, part 4764.0040.new text end 125.20new text begin (c) The commissioner of health shall waive health care home certification new text end 125.21new text begin requirements if an applicant demonstrates that compliance with a certification requirement new text end 125.22new text begin will create a major financial hardship or is not feasible, and the applicant establishes an new text end 125.23new text begin alternative way to accomplish the objectives of the certification requirement.new text end 125.24    Sec. 46. Minnesota Statutes 2010, section 256B.0751, is amended by adding a 125.25subdivision to read: 125.26    new text begin Subd. 8.new text end new text begin Coordination with local services.new text end new text begin The health care home and the county new text end 125.27new text begin shall coordinate care and services provided to patients enrolled with a health care home new text end 125.28new text begin who have complex medical or socioeconomic needs or a disability, and who need and are new text end 125.29new text begin eligible for additional local services administered by counties, including but not limited new text end 125.30new text begin to waivered services, mental health services, social services, public health services, new text end 125.31new text begin transportation, and housing. The coordination of care and services must be as provided in new text end 125.32new text begin the plan established by the patient and health care home.new text end 125.33    Sec. 47. Minnesota Statutes 2010, section 256B.0751, is amended by adding a 125.34subdivision to read: 126.1    new text begin Subd. 9.new text end new text begin Patient choice of health care home.new text end new text begin Notwithstanding section 256B.69, new text end 126.2new text begin subdivisions 4 and 23, and subject to any necessary federal approval, the commissioner new text end 126.3new text begin may require a patient enrolled in a state health care program through a managed care new text end 126.4new text begin plan, county-based purchasing plan, fee-for-service, or demonstration project under new text end 126.5new text begin section 256B.0755 to select a health care home and agree to receive primary care and new text end 126.6new text begin care coordination services through the health care home as a condition of enrollment in new text end 126.7new text begin the state health care program. The patient must be allowed to choose from among all new text end 126.8new text begin available qualified health care providers, including an essential community provider as new text end 126.9new text begin defined in section 62Q.19, if the provider is certified as a health care home and agrees to new text end 126.10new text begin accept the terms, conditions, and payment rates for participation in the managed care plan, new text end 126.11new text begin county-based purchasing plan, fee-for-service program, or demonstration project, except new text end 126.12new text begin that reimbursement to federally qualified health centers and federally qualified health new text end 126.13new text begin center look-alikes as defined in section 145.9269 must comply with federal law. new text end 126.14    Sec. 48. Minnesota Statutes 2010, section 256B.0751, is amended by adding a 126.15subdivision to read: 126.16    new text begin Subd. 10.new text end new text begin Engagement of patients and communities in health care home.new text end new text begin The new text end 126.17new text begin commissioner of health shall require health care homes to demonstrate that their health new text end 126.18new text begin care home patients, and the racial and ethnic communities of current or potential patients, new text end 126.19new text begin participate in evaluating the health care home and recommending improvements and new text end 126.20new text begin changes to the health care home's methods and procedures in order to improve health, new text end 126.21new text begin quality, and patient satisfaction for patients from those communities. The commissioner new text end 126.22new text begin shall consult with racial and ethnic communities to determine whether the requirements of new text end 126.23new text begin this section and rules adopted under it are barriers to effective health care home methods new text end 126.24new text begin and procedures for serving patients of racial and ethnic communities.new text end 126.25    Sec. 49. Minnesota Statutes 2010, section 256B.0753, is amended by adding a 126.26subdivision to read: 126.27    new text begin Subd. 4.new text end new text begin Waiver recipients.new text end new text begin A health care home shall receive the highest care new text end 126.28new text begin coordination payment established under section 256B.0753 for providing services to an new text end 126.29new text begin enrollee receiving home and community-based waiver services.new text end 126.30    Sec. 50. Minnesota Statutes 2010, section 256B.0754, is amended by adding a 126.31subdivision to read: 126.32    new text begin Subd. 3.new text end new text begin Primary care provider tiering.new text end new text begin (a) The commissioner shall establish new text end 126.33new text begin a tiering system for all providers participating in Minnesota health care programs. new text end 127.1new text begin The tiering system must differentiate providers on the basis of their ability to provide new text end 127.2new text begin cost-effective, quality care and must incorporate the provider peer grouping measures new text end 127.3new text begin established under section 62U.04. The tier assignments must be established annually based new text end 127.4new text begin on the most recent peer grouping measures available. Differentiation of tier assignments new text end 127.5new text begin must be statistically valid. The commissioner may set specific quality standards for new text end 127.6new text begin providers designated as high-performing providers under this subdivision.new text end 127.7new text begin (b) The commissioner may adjust the rates paid to providers within each tier group new text end 127.8new text begin established under paragraph (a) on an annual basis. Adjustments to rates shall not include new text end 127.9new text begin the rate paid for care coordination services to certified health care homes under section new text end 127.10new text begin 256B.0753. Providers designated high-performing providers under paragraph (c) are not new text end 127.11new text begin eligible for rate increases unless the provider also meets the cost and quality criteria new text end 127.12new text begin associated with that tier level.new text end 127.13new text begin (c) Health care homes certified under section 256B.0751, rural health clinics, and new text end 127.14new text begin federally qualified health care clinics are designated as high-performing providers under new text end 127.15new text begin this subdivision.new text end 127.16new text begin (d) Providers reimbursed on a cost basis are subject to rate adjustments under this new text end 127.17new text begin section.new text end 127.18new text begin (e) The commissioner may phase in the tiering system by service type. new text end 127.19new text begin EFFECTIVE DATE.new text end new text begin This section is effective one year from the public release of new text end 127.20new text begin provider peer grouping measures under Minnesota Statutes, section 62U.04, or upon new text end 127.21new text begin federal approval, whichever is later.new text end 127.22    Sec. 51. Minnesota Statutes 2010, section 256B.0755, subdivision 4, is amended to 127.23read: 127.24    Subd. 4. Payment system. (a) In developing a payment system for health care 127.25delivery systems, the commissioner shall establish a total cost of care benchmark or a 127.26risk/gain sharing payment model to be paid for services provided to the recipients enrolled 127.27in a health care delivery system. 127.28(b) The payment system may include incentive payments to health care delivery 127.29systems that meet or exceed annual quality and performance targets realized through 127.30the coordination of care. 127.31(c) An amount equal to the savings realized to the general fund as a result of the 127.32demonstration project shall be transferred each fiscal year to the health care access fund. 127.33new text begin (d) The total cost of care benchmark for demonstration projects must be no new text end 127.34new text begin greater than the capitation rate that would have been paid to a managed care plan for a new text end 127.35new text begin substantially similar enrollee population based on the per-member per-month rate in new text end 128.1new text begin effect on December 31, 2010. The commissioner shall adjust benchmark payment rates new text end 128.2new text begin for demonstration projects as necessary to reflect the higher level of service and cost new text end 128.3new text begin necessary to serve a patient population with a higher incidence of socioeconomic barriers new text end 128.4new text begin and complexity, and shall make corresponding reductions in payment rates for projects new text end 128.5new text begin with a lower concentration of patients with socioeconomic barriers and complexity.new text end 128.6    Sec. 52. Minnesota Statutes 2010, section 256B.0755, is amended by adding a 128.7subdivision to read: 128.8    new text begin Subd. 8.new text end new text begin Coordination with local services.new text end new text begin The health care home and the county new text end 128.9new text begin shall coordinate care and services provided to patients enrolled in a demonstration project new text end 128.10new text begin who have complex medical or socioeconomic needs or a disability, and who need and are new text end 128.11new text begin eligible for additional local services administered by counties, including but not limited new text end 128.12new text begin to waivered services, mental health services, social services, public health services, new text end 128.13new text begin transportation, or housing. The coordination of care and services must be as provided in new text end 128.14new text begin the plan established by the patient and primary care provider or health care home.new text end 128.15    Sec. 53. Minnesota Statutes 2010, section 256B.0755, is amended by adding a 128.16subdivision to read: 128.17    new text begin Subd. 9.new text end new text begin Rural demonstration projects.new text end new text begin For demonstration projects serving new text end 128.18new text begin rural areas, the commissioner shall consult with rural hospitals, primary care providers, new text end 128.19new text begin county boards, health plans, and other key stakeholders primarily domiciled in the new text end 128.20new text begin service area regarding the development and approval of alternative rural health care new text end 128.21new text begin delivery demonstration projects under this section. In addition to organizations eligible new text end 128.22new text begin to establish a demonstration project under subdivision 1, a rural demonstration project new text end 128.23new text begin may be established by a county public health or social services agency or a county-based new text end 128.24new text begin purchasing plan. In a rural area where multiple, competing provider-based demonstration new text end 128.25new text begin projects are not possible, the commissioner shall not approve more than one demonstration new text end 128.26new text begin project to serve the primary geographic area and shall follow the applicable procedures new text end 128.27new text begin and requirements in section 256B.692 regarding participation of county boards in new text end 128.28new text begin reviewing and approving demonstration project proposals.new text end 128.29    Sec. 54. Minnesota Statutes 2010, section 256B.0755, is amended by adding a 128.30subdivision to read: 128.31    new text begin Subd. 10.new text end new text begin Patient choice of qualified provider.new text end new text begin The commissioner shall implement new text end 128.32new text begin and approve demonstration projects in a manner that allows a patient to choose a primary new text end 128.33new text begin care provider and health care home from among all available qualified options. The new text end 129.1new text begin commissioner may require the patient to remain with the chosen provider, health care new text end 129.2new text begin home, or demonstration project organization for a period of time determined by the new text end 129.3new text begin commissioner. The commissioner shall implement the demonstration projects in a manner new text end 129.4new text begin that ensures that a patient has the option of receiving services, including health care home new text end 129.5new text begin services, through a provider designated as an essential community provider under section new text end 129.6new text begin 62Q.19. Demonstration projects and essential community providers must comply with new text end 129.7new text begin section 62Q.19, subdivisions 3 to 7, for purposes of participation of providers in the new text end 129.8new text begin demonstration project, except that reimbursement to federally qualified health centers new text end 129.9new text begin and federally qualified health center look-alikes as defined in section 145.9269 must be new text end 129.10new text begin in compliance with federal law.new text end 129.11    Sec. 55. Minnesota Statutes 2010, section 256B.0755, is amended by adding a 129.12subdivision to read: 129.13    new text begin Subd. 11.new text end new text begin Patient and community engagement.new text end new text begin As a condition of approval of new text end 129.14new text begin a demonstration project, the commissioner shall require the applicant to demonstrate new text end 129.15new text begin that consumers and communities to be served under the project were consulted with and new text end 129.16new text begin engaged in the process of developing the project proposal. The proposal must identify the new text end 129.17new text begin needs and preferences of consumers and communities that were identified through this new text end 129.18new text begin process of consultation and engagement. The consumers and communities consulted with new text end 129.19new text begin and engaged in the development of the proposal must generally reflect the demographics, new text end 129.20new text begin race, and ethnicity of those likely to be served under the demonstration project, with a new text end 129.21new text begin special focus on those who experience the greatest health disparities. The commissioner new text end 129.22new text begin shall require that demonstration project providers continue to consult with and engage new text end 129.23new text begin consumers and communities during implementation and operation of the demonstration new text end 129.24new text begin project.new text end 129.25    Sec. 56. Minnesota Statutes 2010, section 256B.0755, is amended by adding a 129.26subdivision to read: 129.27    new text begin Subd. 12.new text end new text begin Care coordination system.new text end new text begin The commissioner of human services, in new text end 129.28new text begin consultation with the commissioner of health, shall convene an advisory committee of new text end 129.29new text begin small, independent, rural, and safety net primary care clinics, community hospitals, new text end 129.30new text begin mental health centers, dental clinics, and other providers to advise the commissioner new text end 129.31new text begin on the establishment of a system that will allow providers participating in payment new text end 129.32new text begin reform demonstration projects established under this section and section 256B.0756 to new text end 129.33new text begin effectively coordinate and deliver care to patients. In consultation with the advisory new text end 129.34new text begin committee, the commissioner shall develop a plan for the care coordination system, issue a new text end 130.1new text begin request for proposals, and contract with a vendor or vendors to establish and maintain the new text end 130.2new text begin technology for the care coordination system. Using appropriations made for this purpose, new text end 130.3new text begin the commissioner shall fund the planning, development, and establishment of the system. new text end 130.4new text begin Ongoing costs must be covered by payments made by the providers who use the system.new text end 130.5    Sec. 57. Minnesota Statutes 2010, section 256B.0755, is amended by adding a 130.6subdivision to read: 130.7    new text begin Subd. 13.new text end new text begin Approval and implementation.new text end new text begin Beginning January 1, 2012, the new text end 130.8new text begin commissioner of human services shall approve payment reform projects authorized under new text end 130.9new text begin this section for medical assistance and MinnesotaCare. The commissioner may approve new text end 130.10new text begin projects for persons enrolled in fee-for-service programs and may require managed care new text end 130.11new text begin plans and county-based purchasing plans to contract with a demonstration project provider new text end 130.12new text begin on the same terms, conditions, and payment arrangements as are established by the new text end 130.13new text begin commissioner for fee-for-service programs.new text end 130.14    Sec. 58. Minnesota Statutes 2010, section 256B.0756, is amended to read: 130.15256B.0756 HENNEPIN AND RAMSEY COUNTIES PILOT PROGRAM. 130.16(a) The commissioner, upon federal approval of a new waiver request or amendment 130.17of an existing demonstration, may establish a pilot program in Hennepin County or 130.18Ramsey County, or both, to test alternative and innovative integrated health care delivery 130.19networks. 130.20(b) Individuals eligible for the pilot program shall be individuals who are eligible for 130.21medical assistance under section 256B.055, subdivision 15, and who reside in Hennepin 130.22County or Ramsey County. 130.23(c) Individuals enrolled in the pilot program shall be enrolled in an integrated 130.24health care delivery network in their county of residence. The integrated health care 130.25delivery network in Hennepin County shall be a network, such as an accountable care 130.26organization or a community-based collaborative care network, created by or including 130.27Hennepin County Medical Center. The integrated health care delivery network in Ramsey 130.28County shall be a network, such as an accountable care organization or community-based 130.29collaborative care network, created by or including Regions Hospital. 130.30(d) The commissioner shall cap pilot program enrollment at 7,000 enrollees for 130.31Hennepin County and 3,500 enrollees for Ramsey County. 130.32(e) In developing a payment system for the pilot programs, the commissioner shall 130.33establish a total cost of care for the recipients enrolled in the pilot programs that equals 131.1the cost of care that would otherwise be spent for these enrollees in the prepaid medical 131.2assistance program. 131.3(f) Counties may transfer funds necessary to support the nonfederal share of 131.4payments for integrated health care delivery networks in their county. Such transfers per 131.5county shall not exceed 15 percent of the expected expenses for county enrollees. 131.6(g) The commissioner shall apply to the federal government for, or as appropriate, 131.7cooperate with counties, providers, or other entities that are applying for any applicable 131.8grant or demonstration under the Patient Protection and Affordable Health Care Act, Public 131.9Law 111-148, or the Health Care and Education Reconciliation Act of 2010, Public Law 131.10111-152, that would further the purposes of or assist in the creation of an integrated health 131.11care delivery network for the purposes of this subdivision, including, but not limited to, a 131.12global payment demonstration or the community-based collaborative care network grants. 131.13new text begin (h) A demonstration project established under this section must meet the new text end 131.14new text begin requirements of section 256B.0755, subdivisions 8, 9, 10, and 11.new text end 131.15    Sec. 59. new text begin [256B.0758] PREGNANCY CARE HOMES.new text end 131.16    new text begin Subdivision 1.new text end new text begin Definitions.new text end new text begin (a) For purposes of this section, the following definitions new text end 131.17new text begin apply.new text end 131.18new text begin (b) "Pregnancy care home" means a health care home certified by the commissioner new text end 131.19new text begin of health under section 256B.0751 that provides pregnancy care services in a way that new text end 131.20new text begin is patient-centered, outcome-driven, comprehensive, and coordinated, and meets the new text end 131.21new text begin standards specified and developed under subdivision 3.new text end 131.22new text begin (c) "Pregnancy care services" means prenatal care, consultative perinatal services, new text end 131.23new text begin intrapartum and postpartum care, and well-baby care for the first week.new text end 131.24new text begin (d) "State health care program" means the medical assistance and MinnesotaCare new text end 131.25new text begin programs.new text end 131.26    new text begin Subd. 2.new text end new text begin Development and implementation of standards.new text end new text begin (a) The commissioners new text end 131.27new text begin of human services and health shall develop and implement standards of certification new text end 131.28new text begin of pregnancy care homes for state health care programs. In developing standards, the new text end 131.29new text begin commissioners shall consult with representatives of the American College of Nurse new text end 131.30new text begin Midwives, the American Congress of OB/GYN, the American Academy of Family new text end 131.31new text begin Practice, the American Academy of Pediatrics, and relevant local consumer groups.new text end 131.32    new text begin Subd. 3.new text end new text begin Criteria for development of standards.new text end new text begin (a) A pregnancy care home must new text end 131.33new text begin meet the general health care home standards developed by the commissioners under new text end 131.34new text begin section 256B.0751, subdivision 2, paragraph (a), clauses (1) to (4), (6), and (8) to (10), and new text end 131.35new text begin must also meet specific standards for pregnancy care homes. The specific standards for new text end 132.1new text begin pregnancy care homes developed by the commissioners must meet the criteria specified new text end 132.2new text begin in this subdivision.new text end 132.3new text begin (b) A pregnancy care home must provide pregnancy care services. Nonpregnancy new text end 132.4new text begin complications, such as preexisting illness, shall be covered by medical assistance outside new text end 132.5new text begin of the pregnancy care home. During a pregnancy episode, the pregnancy care home must new text end 132.6new text begin coordinate necessary nonpregnancy health care services with the mother's primary care new text end 132.7new text begin provider or another appropriate provider.new text end 132.8new text begin (c) Each pregnancy care home must have adequate malpractice insurance that meets new text end 132.9new text begin the standards specified by the commissioners.new text end 132.10new text begin (d) A pregnancy care home may provide pregnancy services through any health care new text end 132.11new text begin professional licensed to provide the service in Minnesota, including but not limited to new text end 132.12new text begin licensed traditional midwives, certified nurse midwives, family practitioners, obstetricians, new text end 132.13new text begin perinatologists, neonatologists, and other advanced practice registered nurses. new text end 132.14new text begin (e) Pregnancy care within a pregnancy care home may be provided at any Minnesota new text end 132.15new text begin facility licensed to provide pregnancy care and birth, including but not limited to new text end 132.16new text begin freestanding birth centers, integrated birth centers, and hospitals. Each pregnancy care new text end 132.17new text begin home must offer the option of midwife-directed pregnancy care services in a licensed new text end 132.18new text begin integrated or freestanding birth center.new text end 132.19new text begin (f) A pregnancy care home must have a governing board comprised of at least new text end 132.20new text begin eight members. One-half of the governing board members must be providers licensed to new text end 132.21new text begin attend births.new text end 132.22new text begin (g) Each pregnancy care home must have a formal consultative relationship with at new text end 132.23new text begin least one level III perinatal center to provide care for mothers and babies who develop new text end 132.24new text begin pregnancy complications.new text end 132.25new text begin (h) Each pregnancy care home must comply with state and federal requirements for new text end 132.26new text begin the use of interoperable electronic medical records.new text end 132.27new text begin (i) Each pregnancy care home must submit annual reports to the commissioners of new text end 132.28new text begin human services and health that document:new text end 132.29new text begin (1) all relevant pregnancy care outcomes and patient satisfaction measures; andnew text end 132.30new text begin (2) the financial status of the pregnancy care home.new text end 132.31new text begin All reports are public data under section 13.02.new text end 132.32new text begin (j) Each pregnancy care home must offer culturally competent care coordination new text end 132.33new text begin services in a manner that is consistent with health care home requirements.new text end 132.34new text begin (k) For the purposes of developing and implementing the standards in this new text end 132.35new text begin subdivision, the commissioners may use the expedited rulemaking process under section new text end 132.36new text begin 14.389.new text end 133.1    new text begin Subd. 4.new text end new text begin Certification process.new text end new text begin Providers seeking certification as a pregnancy care new text end 133.2new text begin home must apply to the commissioner of health. Providers certified by the commissioner new text end 133.3new text begin of health may provide pregnancy care services through pregnancy care homes beginning new text end 133.4new text begin July 1, 2012. Certification as a pregnancy care home is voluntary, except that beginning new text end 133.5new text begin July 1, 2014, all nonemergency pregnancy care services covered under state health care new text end 133.6new text begin programs must be provided through providers certified as pregnancy care homes.new text end 133.7    new text begin Subd. 5.new text end new text begin Payments to pregnancy care homes.new text end new text begin (a) The commissioner of human new text end 133.8new text begin services, in coordination with the commissioner of health, shall develop a payment system new text end 133.9new text begin that provides a single per-person payment to pregnancy care homes to cover all pregnancy new text end 133.10new text begin care services provided to each mother and infant enrolled in a state health care program. new text end 133.11new text begin Pregnancy care homes receiving payments under this subdivision remain eligible for care new text end 133.12new text begin coordination payments under section 256B.0753.new text end 133.13new text begin (b) Payment amounts for pregnancy care homes shall be uniform statewide and new text end 133.14new text begin determined annually by the commissioner, based initially upon a specified percentage new text end 133.15new text begin of the calculated average cost of care for mothers and infants under state health care new text end 133.16new text begin programs for the three most recent fiscal years for which cost information is available. new text end 133.17new text begin Beginning July 1, 2014, statewide payment amounts for pregnancy care homes shall be new text end 133.18new text begin determined annually by the commissioner by adjusting the current payment amount by new text end 133.19new text begin a measure of medical inflation selected by the commissioner that best represents the new text end 133.20new text begin change in the cost of pregnancy-related services provided to patients covered by private new text end 133.21new text begin sector health coverage.new text end 133.22new text begin (c) Pregnancy care home payments must initially be made for pregnancy care new text end 133.23new text begin services provided to pregnant women who are not high risk, beginning July 1, 2012. new text end 133.24new text begin Beginning January 1, 2013, the commissioner shall phase in higher payments for high-risk new text end 133.25new text begin pregnancy categories so that beginning July 1, 2014, pregnancy care services for all new text end 133.26new text begin low-risk and high-risk pregnancies are reimbursed under this subdivision.new text end 133.27    Sec. 60. new text begin [256B.0759] CARE COORDINATION FOR ENROLLEES.new text end 133.28    new text begin Subdivision 1.new text end new text begin Qualified enrollee.new text end new text begin For purposes of this section, a "qualified new text end 133.29new text begin enrollee" means: (1) a medical assistance enrollee eligible under this chapter; or (2) a new text end 133.30new text begin MinnesotaCare enrollee eligible under chapter 256L.new text end 133.31    new text begin Subd. 2.new text end new text begin Selection of primary care provider.new text end new text begin The commissioner shall require new text end 133.32new text begin qualified enrollees who do not have a designated medical condition to select a primary new text end 133.33new text begin care provider and agree to receive primary care services from that provider as a condition new text end 133.34new text begin of medical assistance or MinnesotaCare enrollment.new text end 134.1    new text begin Subd. 3.new text end new text begin Selection of health care home; care coordination.new text end new text begin (a) The commissioner new text end 134.2new text begin shall require qualified enrollees who have a medical condition designated by the new text end 134.3new text begin commissioner to select a health care home certified under section 256B.0751 and agree new text end 134.4new text begin to receive primary care and care coordination services through that health care home as new text end 134.5new text begin a condition of medical assistance or MinnesotaCare enrollment. For purposes of this new text end 134.6new text begin subdivision, the commissioner shall designate medical conditions with a high likelihood new text end 134.7new text begin of inappropriate inpatient hospital admissions for which care coordination and prior new text end 134.8new text begin authorization of admissions are expected to improve the quality of care and lead to costs new text end 134.9new text begin savings for state health care programs.new text end 134.10new text begin (b) The commissioner shall include on Minnesota health care program enrollment new text end 134.11new text begin cards a designation as to whether an enrollee meets the criteria in paragraph (a). In order new text end 134.12new text begin to receive medical assistance or MinnesotaCare payment for nonemergency inpatient new text end 134.13new text begin hospital admissions for enrollees meeting the criteria in paragraph (a), a hospital must new text end 134.14new text begin receive prior authorization from the enrollee's health care home.new text end 134.15new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012, for MinnesotaCare new text end 134.16new text begin enrollees not eligible for a federal match, and is effective January 1, 2012, or upon federal new text end 134.17new text begin approval, whichever is later, for medical assistance enrollees and for MinnesotaCare new text end 134.18new text begin enrollees eligible for a federal match.new text end 134.19    Sec. 61. new text begin [256B.0760] ELECTIVE SURGERY.new text end 134.20    new text begin Subdivision 1.new text end new text begin Payment prohibition.new text end new text begin The commissioner, in consultation with new text end 134.21new text begin health care providers, health care homes certified under section 256B.0751, managed new text end 134.22new text begin care plans providing services under section 256B.69, and county-based purchasing plans new text end 134.23new text begin providing services under section 256B.692, shall identify elective or nonemergency new text end 134.24new text begin surgical procedures for which less invasive and less costly alternative treatment methods new text end 134.25new text begin are available, and shall prohibit payment for these elective or nonemergency surgical new text end 134.26new text begin procedures if the alternative treatment methods have not first been evaluated for use new text end 134.27new text begin and, if appropriate, provided to the enrollee.new text end 134.28    new text begin Subd. 2.new text end new text begin Implementation.new text end new text begin The commissioner shall implement the payment new text end 134.29new text begin prohibitions in paragraph (a) for fee-for-service medical assistance providers by January new text end 134.30new text begin 1, 2012, and shall require managed care and county-based purchasing plans to implement new text end 134.31new text begin the payment prohibitions in paragraph (a) for providers employed or under contract for new text end 134.32new text begin services provided to medical assistance and MinnesotaCare enrollees beginning January new text end 134.33new text begin 1, 2012.new text end 134.34    new text begin Subd. 3.new text end new text begin Reduction in capitation rates.new text end new text begin The commissioner shall reduce medical new text end 134.35new text begin assistance and MinnesotaCare capitation rates to managed care and county-based new text end 135.1new text begin purchasing plans beginning January 1, 2012, to reflect cost-savings to plans resulting from new text end 135.2new text begin implementation of the payment prohibitions required by this subdivision.new text end 135.3    Sec. 62. Minnesota Statutes 2010, section 256B.37, subdivision 5, is amended to read: 135.4    Subd. 5. Private benefits to be used first. Private accident and health care 135.5coveragenew text begin ,new text end including Medicare for medical services new text begin and coverage provided through the new text end 135.6new text begin United States Department of Veterans Affairs, new text end is primary coverage and must be exhausted 135.7before medical assistance or alternative care services are paid for medical services 135.8including home health care, personal care assistance services, hospice, supplies and 135.9equipment, or services covered under a Centers for Medicare and Medicaid Services 135.10waiver. When a person who is otherwise eligible for medical assistance has private 135.11accident or health care coverage, including Medicare or a prepaid health plannew text begin or coverage new text end 135.12new text begin provided through the United States Department of Veterans Affairsnew text end , the private health care 135.13benefits available to the person must be used first and to the fullest extent. 135.14    Sec. 63. Minnesota Statutes 2010, section 256B.69, subdivision 3a, is amended to read: 135.15    Subd. 3a. County authority. (a) The commissioner, when implementingnew text begin or new text end 135.16new text begin administeringnew text end the medical assistance prepayment program within a county, must include 135.17the county board in the process of development, approval, and issuance of the request for 135.18proposals to provide services to eligible individuals within the proposed countynew text begin , including new text end 135.19new text begin proposals for demonstration projects established under section 256B.0755new text end . County boards 135.20must be given reasonable opportunity to make recommendations regardingnew text begin assist innew text end 135.21the development, issuance, review of responses, and changes needed in the request for 135.22proposals. The commissioner must provide county boards the opportunity to review 135.23each proposal based on the identification of community needs under chapters 145A and 135.24256E and county advocacy activities. If a county board finds that a proposal does not 135.25address certain community needs, the county board and commissioner shall continue 135.26efforts for improving the proposal and network prior to the approval of the contract. 135.27The county board shall make recommendationsnew text begin determinationsnew text end regarding the approval 135.28of local networks and their operations to ensure adequatenew text begin localnew text end availability and access to 135.29covered services. The provider or health plan must respond directly to county advocates 135.30and the state prepaid medical assistance ombudsperson regarding service delivery and 135.31must be accountable to the state regarding contracts with medical assistance funds. The 135.32county board may recommendnew text begin shall decidenew text end a maximum number of participating health 135.33plansnew text begin including county-based purchasing plansnew text end after considering the size of the enrolling 135.34population; ensuring adequate access and capacity; considering the client and county 136.1administrative complexity; and considering the need to promote the viability of locally 136.2developed health plansnew text begin , managed care plans, or demonstration projects established under new text end 136.3new text begin section 256B.0755new text end . The county board or a single entity representing a group of county 136.4boards and the commissioner shall mutually selectnew text begin one or more qualifiednew text end health plansnew text begin or new text end 136.5new text begin county-based purchasing plansnew text end for participation at the time of initial implementation of the 136.6prepaid medical assistance programnew text begin or a demonstration project established under section new text end 136.7new text begin 256B.0755new text end in that county or group of counties and at the time of contract renewal. The 136.8commissioner shall also seek input for contract requirements from the county or single 136.9entity representing a group of county boards at each contract renewal and incorporate 136.10those recommendations into the contract negotiation process. 136.11    (b) At the option of the county board, the board may develop contract requirements 136.12related to the achievement of local public health goalsnew text begin and health care delivery and access new text end 136.13new text begin goalsnew text end to meet the health needs of medical assistance enrollees. These requirements must 136.14be reasonably related to the performance of health plannew text begin managed care or delivery system new text end 136.15new text begin demonstration projectnew text end functions and within the scope of the medical assistance benefit 136.16set. If the county board and the commissioner mutually agree to such requirements, the 136.17departmentnew text begin The commissionernew text end shall include such requirements in all health plan contracts 136.18governing the prepaid medical assistance program in that county at initial implementation 136.19of the programnew text begin or demonstration projectnew text end in that county and at the time of contract renewal. 136.20The county board may participate in the enforcement of the contract provisions related to 136.21local public health goals. 136.22    (c) For counties in which a prepaid medical assistance program has not been 136.23established, the commissioner shall not implement that program if a county board submits 136.24an acceptable and timely preliminary and final proposal under section 256B.692, until 136.25county-based purchasing is no longer operational in that county. For counties in which 136.26a prepaid medical assistance program is in existence on or after September 1, 1997, the 136.27commissioner must terminate contracts with health plans according to section 256B.692, 136.28subdivision 5 , if the county board submits and the commissioner accepts a preliminary and 136.29final proposal according to that subdivision. The commissioner is not required to terminate 136.30contracts that begin on or after September 1, 1997, according to section 256B.692 until 136.31two years have elapsed from the date of initial enrollment. 136.32    (d) In the event that a county board or a single entity representing a group of county 136.33boards and the commissioner cannot reach agreement regarding: (i) the selection of 136.34participating health plansnew text begin or demonstration projects under section 256B.0755new text end in that 136.35county; (ii) contract requirements; or (iii) implementation and enforcement of county 136.36requirements including provisions regarding local public health goals, the commissioner 137.1shall resolve all disputes after taking into accountnew text begin by approvingnew text end the recommendations of 137.2a three-person mediation panel. The panel shall be composed of one designee of the 137.3president of the association of Minnesota counties, one designee of the commissioner of 137.4human services, and one person selected jointly by the designee of the commissioner of 137.5human services and the designee of the Association of Minnesota Counties. Within a 137.6reasonable period of time before the hearing, the panelists must be provided all documents 137.7and information relevant to the mediation. The parties to the mediation must be given 137.830 days' notice of a hearing before the mediation panel. 137.9    (e) If a county which elects to implement county-based purchasing ceases to 137.10implement county-based purchasing, it is prohibited from assuming the responsibility of 137.11county-based purchasing for a period of five years from the date it discontinues purchasing. 137.12    (f) The commissioner shall not require that contractual disputes between 137.13county-based purchasing entities and the commissioner be mediated by a panel that 137.14includes a representative of the Minnesota Council of Health Plans. 137.15    (g) At the request of a county-purchasing entity, the commissioner shall adopt a 137.16contract reprocurement or renewal schedule under which all counties included in the 137.17entity's service area are reprocured or renewed at the same time. 137.18    (h) The commissioner shall provide a written report under section 3.195 to the chairs 137.19of the legislative committees having jurisdiction over human services in the senate and the 137.20house of representatives describing in detail the activities undertaken by the commissioner 137.21to ensure full compliance with this section. The report must also provide an explanation 137.22for any decisions of the commissioner not to accept the recommendations of a county or 137.23group of counties required to be consulted under this section. The report must be provided 137.24at least 30 days prior to the effective date of a new or renewed prepaid or managed care 137.25contract in a county. 137.26new text begin (i) This section also applies to other Minnesota health care programs administered new text end 137.27new text begin by the commissioner, including but not limited to the MinnesotaCare program.new text end 137.28    Sec. 64. Minnesota Statutes 2010, section 256B.69, subdivision 4, is amended to read: 137.29    Subd. 4. Limitation of choice. (a) The commissioner shall develop criteria to 137.30determine when limitation of choice may be implemented in the experimental counties. 137.31The criteria shall ensure that all eligible individuals in the county have continuing access 137.32to the full range of medical assistance services as specified in subdivision 6. 137.33    (b) The commissioner shall exempt the following persons from participation in the 137.34project, in addition to those who do not meet the criteria for limitation of choice: 138.1    (1) persons eligible for medical assistance according to section 256B.055, 138.2subdivision 1 ; 138.3    (2) persons eligible for medical assistance due to blindness or disability as 138.4determined by the Social Security Administration or the state medical review team, unless: 138.5    (i) they are 65 years of age or older; or 138.6    (ii) they reside in Itasca County or they reside in a county in which the commissioner 138.7conducts a pilot project under a waiver granted pursuant to section 1115 of the Social 138.8Security Act; 138.9    (3) recipients who currently have private coverage through a health maintenance 138.10organization; 138.11    (4) recipients who are eligible for medical assistance by spending down excess 138.12income for medical expenses other than the nursing facility per diem expense; 138.13    (5) recipients who receive benefits under the Refugee Assistance Program, 138.14established under United States Code, title 8, section 1522(e); 138.15    (6) children who are both determined to be severely emotionally disturbed and 138.16receiving case management services according to section 256B.0625, subdivision 20, 138.17except children who are eligible for and who decline enrollment in an approved preferred 138.18integrated network under section 245.4682; 138.19    (7) adults who are both determined to be seriously and persistently mentally ill and 138.20received case management services according to section 256B.0625, subdivision 20; 138.21    (8) persons eligible for medical assistance according to section 256B.057, 138.22subdivision 10 ; and 138.23    (9) persons with access to cost-effective employer-sponsored private health 138.24insurance or persons enrolled in a non-Medicare individual health plan determined to be 138.25cost-effective according to section 256B.0625, subdivision 15. 138.26Children under age 21 who are in foster placement may enroll in the project on an elective 138.27basis. Individuals excluded under clauses (1), (6), and (7) may choose to enroll on an 138.28elective basis. The commissioner may enroll recipients in the prepaid medical assistance 138.29program for seniors who are (1) age 65 and over, and (2) eligible for medical assistance by 138.30spending down excess income. 138.31    (c) The commissioner may allow persons with a one-month spenddown who are 138.32otherwise eligible to enroll to voluntarily enroll or remain enrolled, if they elect to prepay 138.33their monthly spenddown to the state. 138.34    (d) The commissioner may require those individuals to enroll in the prepaid medical 138.35assistance program who otherwise would have been excluded under paragraph (b), clauses 138.36(1), (3), and (8), and under Minnesota Rules, part 9500.1452, subpart 2, items H, K, and L. 139.1    (e) Before limitation of choice is implemented, eligible individuals shall be notified 139.2and after notification, shall be allowed to choose only among demonstration providers. 139.3The commissioner may assign an individual with private coverage through a health 139.4maintenance organization, to the same health maintenance organization for medical 139.5assistance coverage, if the health maintenance organization is under contract for medical 139.6assistance in the individual's county of residence. After initially choosing a provider, 139.7the recipient is allowed to change that choice only at specified times as allowed by the 139.8commissioner. If a demonstration provider ends participation in the project for any reason, 139.9a recipient enrolled with that provider must select a new provider but may change providers 139.10without cause once more within the first 60 days after enrollment with the second provider. 139.11    (f) An infant born to a woman who is eligible for and receiving medical assistance 139.12and who is enrolled in the prepaid medical assistance program shall be retroactively 139.13enrolled to the month of birth in the same managed care plan as the mother once the 139.14child is enrolled in medical assistance unless the child is determined to be excluded from 139.15enrollment in a prepaid plan under this section. 139.16new text begin (g) For an eligible individual under the age of 65, in the absence of a specific new text end 139.17new text begin managed care plan choice by the individual, the commissioner shall assign the individual to new text end 139.18new text begin the county-based purchasing plan, if any, in the county of the individual's residence. For an new text end 139.19new text begin eligible individual over the age of 65, the commissioner shall make the default assignment new text end 139.20new text begin on the county-based purchasing plan entering into a contract with the commissioner to new text end 139.21new text begin serve this population and receiving federal approval as a special needs plan.new text end 139.22    Sec. 65. Minnesota Statutes 2010, section 256B.69, subdivision 5a, is amended to read: 139.23    Subd. 5a. Managed care contracts. (a) Managed care contracts under this section 139.24and section 256L.12 shall be entered into or renewed on a calendar year basis beginning 139.25January 1, 1996. Managed care contracts which were in effect on June 30, 1995, and set to 139.26renew on July 1, 1995, shall be renewed for the period July 1, 1995 through December 139.2731, 1995 at the same terms that were in effect on June 30, 1995. The commissioner may 139.28issue separate contracts with requirements specific to services to medical assistance 139.29recipients age 65 and older. 139.30    (b) A prepaid health plan providing covered health services for eligible persons 139.31pursuant to chapters 256B and 256L is responsible for complying with the terms of its 139.32contract with the commissioner. Requirements applicable to managed care programs 139.33under chapters 256B and 256L established after the effective date of a contract with the 139.34commissioner take effect when the contract is next issued or renewed. 140.1    (c) Effective for services rendered on or after January 1, 2003, the commissioner 140.2shall withhold five percent of managed care plan payments under this section and 140.3county-based purchasing plan payments under section 256B.692 for the prepaid medical 140.4assistance program pending completion of performance targets. Each performance target 140.5must be quantifiable, objective, measurable, and reasonably attainable, except in the case 140.6of a performance target based on a federal or state law or rule. Criteria for assessment 140.7of each performance target must be outlined in writing prior to the contract effective 140.8date. The managed care plan must demonstrate, to the commissioner's satisfaction, 140.9that the data submitted regarding attainment of the performance target is accurate. The 140.10commissioner shall periodically change the administrative measures used as performance 140.11targets in order to improve plan performance across a broader range of administrative 140.12services. The performance targets must include measurement of plan efforts to contain 140.13spending on health care services and administrative activities. The commissioner may 140.14adopt plan-specific performance targets that take into account factors affecting only one 140.15plan, including characteristics of the plan's enrollee population. The withheld funds 140.16must be returned no sooner than July of the following year if performance targets in the 140.17contract are achieved. The commissioner may exclude special demonstration projects 140.18under subdivision 23. 140.19    (d) Effective for services rendered on or after January 1, 2009, through December 140.2031, 2009, the commissioner shall withhold three percent of managed care plan payments 140.21under this section and county-based purchasing plan payments under section 256B.692 140.22for the prepaid medical assistance program. The withheld funds must be returned no 140.23sooner than July 1 and no later than July 31 of the following year. The commissioner may 140.24exclude special demonstration projects under subdivision 23. 140.25(e) Effective for services provided on or after January 1, 2010, the commissioner 140.26shall require that managed care plans use the assessment and authorization processes, 140.27forms, timelines, standards, documentation, and data reporting requirements, protocols, 140.28billing processes, and policies consistent with medical assistance fee-for-service or the 140.29Department of Human Services contract requirements consistent with medical assistance 140.30fee-for-service or the Department of Human Services contract requirements for all 140.31personal care assistance services under section 256B.0659. 140.32(f) Effective for services rendered on or after January 1, 2010, through December 140.3331, 2010, the commissioner shall withhold 4.5 percent of managed care plan payments 140.34under this section and county-based purchasing plan payments under section 256B.692 140.35for the prepaid medical assistance program. The withheld funds must be returned no 141.1sooner than July 1 and no later than July 31 of the following year. The commissioner may 141.2exclude special demonstration projects under subdivision 23. 141.3(g) Effective for services rendered on or after January 1, 2011, the commissioner 141.4shall include as part of the performance targets described in paragraph (c) a reduction in 141.5the health plan's emergency room utilization rate for state health care program enrollees 141.6by a measurable rate of five percent from the plan's utilization rate for state health care 141.7program enrollees for the previous calendar year. 141.8The withheld funds must be returned no sooner than July 1 and no later than July 31 141.9of the following calendar year if the managed care plan demonstrates to the satisfaction of 141.10the commissioner that a reduction in the utilization rate was achieved. 141.11The withhold described in this paragraph shall continue for each consecutive 141.12contract period until the plan's emergency room utilization rate for state health care 141.13program enrollees is reduced by 25 percent of the plan's emergency room utilization 141.14rate for state health care program enrollees for calendar year 2009. Hospitals shall 141.15cooperate with the health plans in meeting this performance target and shall accept 141.16payment withholds that may be returned to the hospitals if the performance target is 141.17achieved. The commissioner shall structure the withhold so that the commissioner returns 141.18a portion of the withheld funds in amounts commensurate with achieved reductions in 141.19utilization less than the targeted amount. The withhold in this paragraph does not apply to 141.20county-based purchasing plans. 141.21new text begin (h) Effective for services rendered on or after January 1, 2012, the commissioner new text end 141.22new text begin shall include as part of the performance targets described in paragraph (c) a reduction in new text end 141.23new text begin the plan's hospitalization rates or subsequent hospitalizations within 30 days of a previous new text end 141.24new text begin hospitalization of a patient regardless of the reason for the hospitalization for state health new text end 141.25new text begin care program enrollees by a measurable rate of five percent from the plan's utilization rate new text end 141.26new text begin for state health care program enrollees for the previous calendar year.new text end 141.27new text begin The withheld funds must be returned no sooner than July 1 and no later than July 31 new text end 141.28new text begin of the following calendar year if the managed care plan or county-based purchasing plan new text end 141.29new text begin demonstrates to the satisfaction of the commissioner that a reduction in the hospitalization new text end 141.30new text begin rate was achieved.new text end 141.31new text begin The withhold described in this paragraph must continue for each consecutive new text end 141.32new text begin contract period until the plan's subsequent hospitalization rate for state health care new text end 141.33new text begin program enrollees is reduced by 25 percent of the plan's subsequent hospitalization rate new text end 141.34new text begin for state health care program enrollees for calendar year 2010. Hospitals shall cooperate new text end 141.35new text begin with the plans in meeting this performance target and shall accept payment withholds that new text end 141.36new text begin must be returned to the hospitals if the performance target is achieved. The commissioner new text end 142.1new text begin shall structure the withhold so that the commissioner returns a portion of the withheld new text end 142.2new text begin funds in amounts commensurate with achieved reductions in utilization less than the new text end 142.3new text begin targeted amount.new text end 142.4(h)new text begin (i)new text end Effective for services rendered on or after January 1, 2011, through December 142.531, 2011, the commissioner shall withhold 4.5 percent of managed care plan payments 142.6under this section and county-based purchasing plan payments under section 256B.692 142.7for the prepaid medical assistance program. The withheld funds must be returned no 142.8sooner than July 1 and no later than July 31 of the following year. The commissioner may 142.9exclude special demonstration projects under subdivision 23. 142.10(i)new text begin (j)new text end Effective for services rendered on or after January 1, 2012, through December 142.1131, 2012, the commissioner shall withhold 4.5 percent of managed care plan payments 142.12under this section and county-based purchasing plan payments under section 256B.692 142.13for the prepaid medical assistance program. The withheld funds must be returned no 142.14sooner than July 1 and no later than July 31 of the following year. The commissioner may 142.15exclude special demonstration projects under subdivision 23. 142.16(j)new text begin (k)new text end Effective for services rendered on or after January 1, 2013, through December 142.1731, 2013, the commissioner shall withhold 4.5 percent of managed care plan payments 142.18under this section and county-based purchasing plan payments under section 256B.692 142.19for the prepaid medical assistance program. The withheld funds must be returned no 142.20sooner than July 1 and no later than July 31 of the following year. The commissioner may 142.21exclude special demonstration projects under subdivision 23. 142.22(k)new text begin (l)new text end Effective for services rendered on or after January 1, 2014, the commissioner 142.23shall withhold three percent of managed care plan payments under this section and 142.24county-based purchasing plan payments under section 256B.692 for the prepaid medical 142.25assistance program. The withheld funds must be returned no sooner than July 1 and 142.26no later than July 31 of the following year. The commissioner may exclude special 142.27demonstration projects under subdivision 23. 142.28(l)new text begin (m)new text end A managed care plan or a county-based purchasing plan under section 142.29256B.692 may include as admitted assets under section 62D.044 any amount withheld 142.30under this section that is reasonably expected to be returned. 142.31(m)new text begin (n)new text end Contracts between the commissioner and a prepaid health plan are exempt 142.32from the set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph 142.33(a), and 7. 142.34(n)new text begin (o)new text end The return of the withhold under paragraphs (d), (f), and (h) to (k) is not 142.35subject to the requirements of paragraph (c). 143.1    Sec. 66. Minnesota Statutes 2010, section 256B.69, subdivision 5c, is amended to read: 143.2    Subd. 5c. Medical education and research fund. (a) The commissioner of human 143.3services shall transfer each year to the medical education and research fund established 143.4under section 62J.692, the following: 143.5(1) an amount equal to the reduction in the prepaid medical assistance payments as 143.6specified in this clause. Until January 1, 2002, the county medical assistance capitation 143.7base rate prior to plan specific adjustments and after the regional rate adjustments under 143.8subdivision 5b is reduced 6.3 percent for Hennepin County, two percent for the remaining 143.9metropolitan counties, and no reduction for nonmetropolitan Minnesota counties; and after 143.10January 1, 2002, the county medical assistance capitation base rate prior to plan specific 143.11adjustments is reduced 6.3 percent for Hennepin County, two percent for the remaining 143.12metropolitan counties, and 1.6 percent for nonmetropolitan Minnesota counties. Nursing 143.13facility and elderly waiver payments and demonstration project payments operating 143.14under subdivision 23 are excluded from this reduction. The amount calculated under 143.15this clause shall not be adjusted for periods already paid due to subsequent changes to 143.16the capitation payments; 143.17(2) beginning July 1, 2003, $4,314,000 from the capitation rates paid under this 143.18section; 143.19(3) beginning July 1, 2002, an additional $12,700,000 from the capitation rates 143.20paid under this section; and 143.21(4) beginning July 1, 2003, an additional $4,700,000 from the capitation rates paid 143.22under this section. 143.23(b) This subdivision shall be effective upon approval of a federal waiver which 143.24allows federal financial participation in the medical education and research fund. Effective 143.25July 1, 2009, and thereafter, the transfers required by paragraph (a), clauses (1) to (4), 143.26shall not exceed the total amount transferred for fiscal year 2009. Any excess shall first 143.27reduce the amounts otherwise required to be transferred under paragraph (a), clauses 143.28(2) to (4). Any excess following this reduction shall proportionally reduce the transfers 143.29under paragraph (a), clause (1). 143.30(c) Beginning July 1, 2009, of the amounts in paragraph (a), the commissioner shall 143.31transfer $21,714,000 each fiscal year to the medical education and research fund. The 143.32balance of the transfers under paragraph (a) shall be transferred to the medical education 143.33and research fund no earlier than July 1 of the following fiscal year. 143.34new text begin (d) Beginning in fiscal year 2012, the commissioner shall reduce the amount new text end 143.35new text begin transferred to the medical education research fund under paragraph (a), by $4,500,000 new text end 144.1new text begin each fiscal year. This reduction must be applied to the amount available for general new text end 144.2new text begin distribution under section 62J.692, subdivision 7, clause (5).new text end 144.3    Sec. 67. Minnesota Statutes 2010, section 256B.69, subdivision 6, is amended to read: 144.4    Subd. 6. Service delivery. (a) Each demonstration provider shall be responsible for 144.5the health care coordination for eligible individuals. Demonstration providers: 144.6    (1) shall authorize and arrange for the provision of all needed health services 144.7including but not limited to the full range of services listed in sections 256B.02, 144.8subdivision 8 , and 256B.0625 in order to ensure appropriate health care is delivered to 144.9enrollees. Notwithstanding section 256B.0621, demonstration providers that provide 144.10nursing home and community-based services under this section shall provide relocation 144.11service coordination to enrolled persons age 65 and over; 144.12    (2) shall accept the prospective, per capita payment from the commissioner in return 144.13for the provision of comprehensive and coordinated health care services for eligible 144.14individuals enrolled in the program; 144.15    (3) may contract with other health care and social service practitioners to provide 144.16services to enrollees; and 144.17    (4) shall institute recipient grievance procedures according to the method established 144.18by the project, utilizing applicable requirements of chapter 62D. Disputes not resolved 144.19through this process shall be appealable to the commissioner as provided in subdivision 11. 144.20    (b) Demonstration providers must comply with the standards for claims settlement 144.21under section 72A.201, subdivisions 4, 5, 7, and 8, when contracting with other health 144.22care and social service practitioners to provide services to enrollees. A demonstration 144.23provider must pay a clean claim, as defined in Code of Federal Regulations, title 42, 144.24section 447.45(b), within 30 business days of the date of acceptance of the claim. 144.25new text begin (c) A demonstration provider must accept into its medical assistance and new text end 144.26new text begin MinnesotaCare provider networks any health care or social service provider that agrees new text end 144.27new text begin to accept payment, quality assurance, and other contract terms that the demonstration new text end 144.28new text begin provider applies to other similarly situated providers in its provider network.new text end 144.29new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012, and applies to new text end 144.30new text begin provider contracts that take effect on or after that date.new text end 144.31    Sec. 68. Minnesota Statutes 2010, section 256B.69, is amended by adding a 144.32subdivision to read: 144.33    new text begin Subd. 30.new text end new text begin Provider payment rates.new text end new text begin (a) Each managed care and county-based plan new text end 144.34new text begin shall, by October 1, 2011, array all providers within each provider type, employed by or new text end 145.1new text begin under contract with the plan, by their average total annual cost of care for serving medical new text end 145.2new text begin assistance and MinnesotaCare enrollees for the most recent reporting year for which data new text end 145.3new text begin is available, risk-adjusted for enrollee demographics and health status.new text end 145.4new text begin (b) Beginning January 1, 2012, and each contract year thereafter, each managed new text end 145.5new text begin care and county-based purchasing plan shall implement a progressive payment withhold new text end 145.6new text begin methodology for each provider type, under which the withhold for a provider increases new text end 145.7new text begin proportionally as the provider's risk-adjusted total annual cost increases, relative to other new text end 145.8new text begin providers of the same type. For purposes of this paragraph, the risk-adjusted total annual new text end 145.9new text begin cost of care is the dollar amount calculated under paragraph (a).new text end 145.10new text begin (c) At the end of each contract year, each plan shall array all providers within each new text end 145.11new text begin provider type by their average total annual cost of care for serving medical assistance and new text end 145.12new text begin MinnesotaCare enrollees for that contract year, risk-adjusted for enrollee demographics new text end 145.13new text begin and health status. For each provider whose risk-adjusted total annual cost of care is at or new text end 145.14new text begin below a benchmark percentile established by the plan, the plan shall return the full amount new text end 145.15new text begin of any withhold. For each provider whose risk-adjusted total annual cost of care is above new text end 145.16new text begin the benchmark percentile, the plan shall return only the portion of the withhold sufficient new text end 145.17new text begin to bring the provider's payment rate to the average for providers within the provider type new text end 145.18new text begin whose risk-adjusted total annual cost of care is at the benchmark percentile. Each plan shall new text end 145.19new text begin establish the benchmark percentile at a level that allows the plan to adjust expenditures for new text end 145.20new text begin provider payments to reflect the reduction in capitation rates under paragraph (f).new text end 145.21new text begin (d) Each managed care and county-based purchasing plan must establish an appeals new text end 145.22new text begin process to allow providers to appeal determinations of risk-adjusted total annual cost of new text end 145.23new text begin care. Each plan's appeals process must be approved by the commissioner.new text end 145.24new text begin (e) The commissioner shall require each plan to submit to the commissioner, in new text end 145.25new text begin the form and manner specified by the commissioner, all provider payment data and new text end 145.26new text begin information on the withhold methodology that the commissioner determines is necessary new text end 145.27new text begin to verify compliance with this subdivision.new text end 145.28new text begin (f) The commissioner, for the contract year beginning January 1, 2012, shall reduce new text end 145.29new text begin plan capitation rates by 12 percent from the rates that would otherwise apply, absent new text end 145.30new text begin application of this subdivision. The reduced rate shall be the historical base rate for new text end 145.31new text begin negotiating capitation rates for future contract years. The commissioner may recommend new text end 145.32new text begin additional reductions in capitation rates for future contract years to the legislature, if the new text end 145.33new text begin commissioner determines this is necessary to ensure that health care providers under new text end 145.34new text begin contract with managed care and county-based purchasing plans practice in an efficient new text end 145.35new text begin manner.new text end 146.1new text begin (g) The commissioner of human services, in consultation with the commissioner of new text end 146.2new text begin health, shall develop and provide to managed care and county-based purchasing plans, by new text end 146.3new text begin September 1, 2011, standard criteria and definitions necessary for consistent calculation new text end 146.4new text begin of the total annual risk-adjusted cost of care across plans. The commissioner may use new text end 146.5new text begin encounter data collected under section 62U.04 to implement this subdivision, and may new text end 146.6new text begin provide encounter data or analyses to plans. Section 62U.04, subdivision 4, paragraph new text end 146.7new text begin (b), shall not apply to the commissioners of health and human services for purposes of new text end 146.8new text begin this subdivision.new text end 146.9new text begin (h) For purposes of this subdivision, "provider" means a vendor of medical care new text end 146.10new text begin as defined in section 256B.02, subdivision 7, for which sufficient encounter data on new text end 146.11new text begin utilization and costs is available to implement this subdivision.new text end 146.12new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end 146.13    Sec. 69. Minnesota Statutes 2010, section 256B.69, is amended by adding a 146.14subdivision to read: 146.15    new text begin Subd. 31.new text end new text begin Initiatives to reduce incidence of low birth weight.new text end new text begin The commissioner new text end 146.16new text begin shall require managed care and county-based purchasing plans as a condition of contract new text end 146.17new text begin to implement strategies to reduce the incidence of low birth weight in geographic areas new text end 146.18new text begin identified by the commissioner as having a higher than average incidence of low birth new text end 146.19new text begin weight, with special emphasis on areas within a one-mile radius of hospitals within their new text end 146.20new text begin provider networks. These strategies may focus on smoking prevention and cessation, new text end 146.21new text begin ensuring that pregnant women get adequate nutrition, and addressing demographic, new text end 146.22new text begin social, and environmental risk factors. The strategies must coordinate health care with new text end 146.23new text begin social services and the local public health system, and offer patient education through new text end 146.24new text begin appropriate means. The commissioner shall require plans to submit proposed initiatives new text end 146.25new text begin for approval to the commissioner by January 1, 2012, and the commissioner shall require new text end 146.26new text begin plans to implement approved initiatives by July 1, 2012. The commissioner shall evaluate new text end 146.27new text begin the strategies adopted to reduce low birth weight and shall require plans to submit outcome new text end 146.28new text begin and other data necessary for the evaluation.new text end 146.29    Sec. 70. Minnesota Statutes 2010, section 256B.69, is amended by adding a 146.30subdivision to read: 146.31    new text begin Subd. 32.new text end new text begin Health education.new text end new text begin The commissioner shall require managed care and new text end 146.32new text begin county-based purchasing plans, as a condition of contract, to provide health education, new text end 146.33new text begin wellness training, and information about the availability and benefits of preventive new text end 146.34new text begin services to all medical assistance and MinnesotaCare enrollees, beginning January 1, new text end 147.1new text begin 2012. Plan initiatives developed or implemented to comply with this requirement must be new text end 147.2new text begin approved by the commissioner.new text end 147.3    Sec. 71. Minnesota Statutes 2010, section 256B.692, subdivision 2, is amended to read: 147.4    Subd. 2. Duties of commissioner of health. (a) Notwithstanding chapters 62D and 147.562N, a county that elects to purchase medical assistance in return for a fixed sum without 147.6regard to the frequency or extent of services furnished to any particular enrollee is not 147.7required to obtain a certificate of authority under chapter 62D or 62N. The county board 147.8of commissioners is the governing body of a county-based purchasing program. In a 147.9multicounty arrangement, the governing body is a joint powers board established under 147.10section 471.59. 147.11    (b) A county that elects to purchase medical assistance services under this section 147.12must satisfy the commissioner of health that the requirements for assurance of consumer 147.13protection, provider protection, and, effective January 1, 2010, fiscal solvency of chapter 147.1462D, applicable to health maintenance organizations will be met according to the 147.15following schedule: 147.16    (1) for a county-based purchasing plan approved on or before June 30, 2008, the 147.17plan must have in reserve: 147.18    (i) at least 50 percent of the minimum amount required under chapter 62D as 147.19of January 1, 2010; 147.20    (ii) at least 75 percent of the minimum amount required under chapter 62D as of 147.21January 1, 2011; 147.22    (iii) at least 87.5 percent of the minimum amount required under chapter 62D as 147.23of January 1, 2012; and 147.24    (iv) at least 100 percent of the minimum amount required under chapter 62D as 147.25of January 1, 2013; and 147.26    (2) for a county-based purchasing plan first approved after June 30, 2008, the plan 147.27must have in reserve: 147.28    (i) at least 50 percent of the minimum amount required under chapter 62D at the 147.29time the plan begins enrolling enrollees; 147.30    (ii) at least 75 percent of the minimum amount required under chapter 62D after 147.31the first full calendar year; 147.32    (iii) at least 87.5 percent of the minimum amount required under chapter 62D after 147.33the second full calendar year; and 147.34    (iv) at least 100 percent of the minimum amount required under chapter 62D after 147.35the third full calendar year. 148.1    (c) Until a plan is required to have reserves equaling at least 100 percent of the 148.2minimum amount required under chapter 62D, the plan may demonstrate its ability 148.3to cover any losses by satisfying the requirements of chapter 62N.new text begin Notwithstanding new text end 148.4new text begin this paragraph and paragraph (b), a county-based purchasing plan may satisfy its fiscal new text end 148.5new text begin solvency requirements by obtaining written financial guarantees from participating new text end 148.6new text begin counties in amounts equivalent to the minimum amounts that would otherwise apply.new text end 148.7A county-based purchasing plan must also assure the commissioner of health that the 148.8requirements of sections 62J.041; 62J.48; 62J.71 to 62J.73; 62M.01 to 62M.16; all 148.9applicable provisions of chapter 62Q, including sections 62Q.075; 62Q.1055; 62Q.106; 148.1062Q.12 ; 62Q.135; 62Q.14; 62Q.145; 62Q.19; 62Q.23, paragraph (c); 62Q.43; 62Q.47; 148.1162Q.50 ; 62Q.52 to 62Q.56; 62Q.58; 62Q.68 to 62Q.72; and 72A.201 will be met. 148.12    (d) All enforcement and rulemaking powers available under chapters 62D, 62J, 62M, 148.1362N, and 62Q are hereby granted to the commissioner of health with respect to counties 148.14that purchase medical assistance services under this section. 148.15    (e) The commissioner, in consultation with county government, shall develop 148.16administrative and financial reporting requirements for county-based purchasing programs 148.17relating to sections 62D.041, 62D.042, 62D.045, 62D.08, 62N.28, 62N.29, and 62N.31, 148.18and other sections as necessary, that are specific to county administrative, accounting, and 148.19reporting systems and consistent with other statutory requirements of counties. 148.20    (f) The commissioner shall collect from a county-based purchasing plan under 148.21this section the following fees: 148.22    (1) fees attributable to the costs of audits and other examinations of plan financial 148.23operations. These fees are subject to the provisions of Minnesota Rules, part 4685.2800, 148.24subpart 1, item F; 148.25    (2) an annual fee of $21,500, to be paid by June 15 of each calendar year, beginning 148.26in calendar year 2009; and 148.27    (3) for fiscal year 2009 only, a per-enrollee fee of 14.6 cents, based on the number of 148.28enrollees as of December 31, 2008. 148.29All fees collected under this paragraph shall be deposited in the state government special 148.30revenue fund. 148.31    Sec. 72. Minnesota Statutes 2010, section 256B.692, subdivision 5, is amended to read: 148.32    Subd. 5. County proposals. (a) On or before September 1, 1997, a county board 148.33that wishes to purchase or provide health care under this section must submit a preliminary 148.34proposal that substantially demonstrates the county's ability to meet all the requirements 148.35of this section in response to criteria for proposals issued by the department on or before 149.1July 1, 1997. Counties submitting preliminary proposals must establish a local planning 149.2process that involves input from medical assistance recipients, recipient advocates, 149.3providers and representatives of local school districts, labor, and tribal government to 149.4advise on the development of a final proposal and its implementation. 149.5(b) The county board must submit a final proposal on or before July 1, 1998, that 149.6demonstrates the ability to meet all the requirements of this section, including beginning 149.7enrollment on January 1, 1999, unless a delay has been granted under section 256B.69, 149.8subdivision 3a , paragraph (g). 149.9(c) After January 1, 1999, for a county in which the prepaid medical assistance 149.10program is in existence, the county board must submit a preliminary proposal at least 15 149.11months prior to termination of health plan contracts in that county and a final proposalnew text begin new text end 149.12new text begin that meets the requirements of this sectionnew text end six months prior to the health plan contract 149.13termination date in order to begin enrollment after the termination. Nothing in this section 149.14shall impede or delay implementation or continuation of the prepaid medical assistance 149.15program in counties for which the board does not submit a proposal, or submits a proposal 149.16that is not in compliance with this section. 149.17(d) The commissioner is not required to terminate contracts for the prepaid medical 149.18assistance program that begin on or after September 1, 1997, in a county for which a 149.19county board has submitted a proposal under this paragraph, until two years have elapsed 149.20from the date of initial enrollment in the prepaid medical assistance program. 149.21    Sec. 73. Minnesota Statutes 2010, section 256B.692, subdivision 7, is amended to read: 149.22    Subd. 7. Dispute resolution. In the event the commissioner rejects a proposal 149.23under subdivision 6, the county board may request the recommendationnew text begin decisionnew text end of a 149.24three-person mediation panel. The commissioner shall resolve all disputes after taking 149.25into accountnew text begin by followingnew text end the recommendationsnew text begin decisionnew text end of the mediation panel. The 149.26panel shall be composed of one designee of the president of the Association of Minnesota 149.27Counties, one designee of the commissioner of human services, and one person selected 149.28jointly by the designee of the commissioner of human services and the designee of 149.29the Association of Minnesota Counties. Within a reasonable period of time before the 149.30hearing, the panelists must be provided all documents and information relevant to the 149.31mediation. The parties to the mediation must be given 30 days' notice of a hearing before 149.32the mediation panel. 149.33    Sec. 74. Minnesota Statutes 2010, section 256B.692, is amended by adding a 149.34subdivision to read: 150.1    new text begin Subd. 11.new text end new text begin Patient choice of qualified provider.new text end new text begin Effective January 1, 2012, a county new text end 150.2new text begin board operating a county-based purchasing plan must ensure that each enrollee has the new text end 150.3new text begin option of choosing a primary care provider or a health care home from all qualified new text end 150.4new text begin providers who agree to accept the terms, conditions, and payment rates offered by the new text end 150.5new text begin plan to similarly situated providers. Notwithstanding this requirement, reimbursement new text end 150.6new text begin to federally qualified health centers and federally qualified health center look-alikes as new text end 150.7new text begin defined in section 145.9269 must be in compliance with federal law.new text end 150.8    Sec. 75. Minnesota Statutes 2010, section 256B.694, is amended to read: 150.9256B.694 SOLE-SOURCE OR SINGLE-PLAN MANAGED CARE 150.10CONTRACT. 150.11    (a) Notwithstanding section 256B.692, subdivision 6, clause (1), paragraph (c), 150.12the commissioner of human services shall approve a county-based purchasing health 150.13plan proposal, submitted on behalf of Cass, Crow Wing, Morrison, Todd, and Wadena 150.14Counties, that requires county-based purchasing on a single-plan basis contract if the 150.15implementation of the single-plan purchasing proposal does not limit an enrollee's 150.16provider choice or access to services and all other requirements applicable to health plan 150.17purchasing are satisfied. The commissioner shall continue to use single-health plan, 150.18county-based purchasing arrangements for medical assistance and general assistance 150.19medical care programs and products for the counties that were in single-health plan, 150.20county-based purchasing arrangements on March 1, 2008. This paragraph does not require 150.21the commissioner to terminate an existing contract with a noncounty-based purchasing 150.22plan that had enrollment in a medical assistance program or product in these counties on 150.23March 1, 2008. This paragraph expires on December 31, 2010, or the effective date 150.24of a new contract for medical assistance and general assistance medical care managed 150.25care programs entered into at the conclusion of the commissioner's next scheduled 150.26reprocurement process for the county-based purchasing entities covered by this paragraph, 150.27whichever is later. 150.28    (b)new text begin At the request of a county or group of counties,new text end the commissioner shall consider, 150.29and may approve, contracting on a single-health plan basis with other county-based 150.30purchasing plans, or with other qualified health plans that have coordination arrangements 150.31with counties, to serve persons with a disability who voluntarily enroll,new text begin enrolled in new text end 150.32new text begin Minnesota health care programsnew text end in order to promote better coordination or integration 150.33of health care services, social services and other community-based services, provided 150.34that all requirements applicable to health plan purchasing, including those in section 151.1256B.69, subdivision 23 , are satisfied. Nothing in this paragraph supersedes or modifies 151.2the requirements in paragraph (a). 151.3    Sec. 76. Minnesota Statutes 2010, section 256B.76, subdivision 4, is amended to read: 151.4    Subd. 4. Critical access dental providers. (a) Effective for dental services 151.5rendered on or after January 1, 2002, the commissioner shall increase reimbursements 151.6to dentists and dental clinics deemed by the commissioner to be critical access dental 151.7providers. For dental services rendered on or after July 1, 2007, the commissioner shall 151.8increase reimbursement by 30 percent above the reimbursement rate that would otherwise 151.9be paid to the critical access dental provider. The commissioner shall pay the managed 151.10care plans and county-based purchasing plans in amounts sufficient to reflect increased 151.11reimbursements to critical access dental providers as approved by the commissioner. 151.12(b) The commissioner shall designate the following dentists and dental clinics as 151.13critical access dental providers: 151.14    (1) nonprofit community clinics that: 151.15(i) have nonprofit status in accordance with chapter 317A; 151.16(ii) have tax exempt status in accordance with the Internal Revenue Code, section 151.17501(c)(3); 151.18(iii) are established to provide oral health services to patients who are low income, 151.19uninsured, have special needs, and are underserved; 151.20(iv) have professional staff familiar with the cultural background of the clinic's 151.21patients; 151.22(v) charge for services on a sliding fee scale designed to provide assistance to 151.23low-income patients based on current poverty income guidelines and family size; 151.24(vi) do not restrict access or services because of a patient's financial limitations 151.25or public assistance status; and 151.26(vii) have free care available as needed; 151.27    (2) federally qualified health centers, rural health clinics, and public health clinics; 151.28    (3) county owned and operated hospital-based dental clinics; 151.29(4) a dental clinic or dental group owned and operated by a nonprofit corporation in 151.30accordance with chapter 317A with more than 10,000 patient encounters per year with 151.31patients who are uninsured or covered by medical assistance, general assistance medical 151.32care, or MinnesotaCare; and 151.33(5) a dental clinic associated with an oral health or dental education programnew text begin owned new text end 151.34new text begin andnew text end operated by the University of Minnesota or an institution within the Minnesota State 151.35Colleges and Universities system. 152.1     (c) The commissioner may designate a dentist or dental clinic as a critical access 152.2dental provider if the dentist or dental clinic is willing to provide care to patients covered 152.3by medical assistance, general assistance medical care, or MinnesotaCare at a level which 152.4significantly increases access to dental care in the service area. 152.5(d) Notwithstanding paragraph (a), critical access payments must not be made for 152.6dental services provided from April 1, 2010, through June 30, 2010. 152.7new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2011.new text end 152.8    Sec. 77. new text begin [256B.7671] PATIENT-CENTERED DECISION-MAKING.new text end 152.9new text begin (a) For purposes of this section, "patient-centered decision-making process" means a new text end 152.10new text begin process that involves directed interaction with the patient to assist the patient in arriving at new text end 152.11new text begin an informed objective health care decision regarding the surgical procedure that is both new text end 152.12new text begin informed and consistent with the patient's preference and values. The interaction may be new text end 152.13new text begin conducted by a health care provider or through the electronic use of decision aids. If new text end 152.14new text begin decision aids are used in the process, the aids must meet the criteria established by the new text end 152.15new text begin International Patients Decision Aids Standards Collaboration or the Cochrane Decision new text end 152.16new text begin Aid Registry.new text end 152.17new text begin (b) Effective January 1, 2012, the commissioner of human services shall require new text end 152.18new text begin active participation in a patient-centered decision-making process before authorization is new text end 152.19new text begin approved or payment reimbursement is provided for any of the following:new text end 152.20new text begin (1) a surgical procedure for abnormal uterine bleeding, benign prostate enlargement, new text end 152.21new text begin chronic back pain, early stage of breast and prostate cancers, gastroesophageal reflux new text end 152.22new text begin disease, hemorrhoids, spinal stenosis, temporomandibular joint dysfunction, ulcerative new text end 152.23new text begin colitis, urinary incontinence, uterine fibroids, or varicose veins; andnew text end 152.24new text begin (2) bypass surgery for coronary disease, angioplasty for stable coronary artery new text end 152.25new text begin disease, or total hip replacement. new text end 152.26new text begin (c) A list of the procedures in paragraph (b) shall be published in the State Register new text end 152.27new text begin by October 1, 2011. The list shall be reviewed no less than every two years by the new text end 152.28new text begin commissioner, in consultation with the commissioner of health. The commissioner new text end 152.29new text begin shall hold a public forum and receive public comment prior to any changes to the list in new text end 152.30new text begin paragraph (b). Any changes made shall be published in the State Register.new text end 152.31new text begin (d) Prior to receiving authorization or reimbursement for the procedures identified new text end 152.32new text begin under this section, a health care provider must certify that the patient has participated in a new text end 152.33new text begin patient-centered decision-making process. The format for this certification and the process new text end 152.34new text begin for coordination between providers shall be developed by the Health Services Policy new text end 152.35new text begin Committee under section 256B.0625, subdivision 3c.new text end 153.1new text begin (e) This section does not apply if any of the procedures identified in this section are new text end 153.2new text begin performed under an emergency situation.new text end 153.3    Sec. 78. new text begin [256B.771] COMPLEMENTARY AND ALTERNATIVE MEDICINE new text end 153.4new text begin DEMONSTRATION PROJECT.new text end 153.5    new text begin Subdivision 1.new text end new text begin Establishment and implementation.new text end new text begin The commissioner of new text end 153.6new text begin human services, in consultation with the commissioner of health, shall contract new text end 153.7new text begin with a Minnesota-based academic and research institution specializing in providing new text end 153.8new text begin complementary and alternative medicine education and clinical services to establish and new text end 153.9new text begin implement a five-year demonstration project in conjunction with federally qualified health new text end 153.10new text begin centers and federally qualified health center look-alikes as defined in section 145.9269, to new text end 153.11new text begin improve the quality and cost-effectiveness of care provided under medical assistance to new text end 153.12new text begin enrollees with neck and back problems. The demonstration project must maximize the use new text end 153.13new text begin of complementary and alternative medicine-oriented primary care providers, including but new text end 153.14new text begin not limited to physicians and chiropractors. The demonstration project must be designed new text end 153.15new text begin to significantly improve physical and mental health for enrollees who present with new text end 153.16new text begin neck and back problems while decreasing medical treatment costs. The commissioner, new text end 153.17new text begin in consultation with the commissioner of health, shall deliver services through the new text end 153.18new text begin demonstration project beginning July 1, 2011, or upon federal approval, whichever is later.new text end 153.19    new text begin Subd. 2.new text end new text begin RFP and project criteria.new text end new text begin The commissioner, in consultation with the new text end 153.20new text begin commissioner of health, shall develop and issue a request for proposal (RFP) for the new text end 153.21new text begin demonstration project. The RFP must require the academic and research institution new text end 153.22new text begin selected to demonstrate a proven track record over at least five years of conducting new text end 153.23new text begin high-quality, federally funded clinical research. The institution and the federally qualified new text end 153.24new text begin health centers and federally qualified health center look-alikes shall also:new text end 153.25new text begin (1) provide patient education, provider education, and enrollment training new text end 153.26new text begin components on health and lifestyle issues in order to promote enrollee responsibility for new text end 153.27new text begin health care decisions, enhance productivity, prepare enrollees to reenter the workforce, new text end 153.28new text begin and reduce future health care expenditures;new text end 153.29new text begin (2) use high-quality and cost-effective integrated disease management that includes new text end 153.30new text begin the best practices of traditional and complementary and alternative medicine;new text end 153.31new text begin (3) incorporate holistic medical care, appropriate nutrition, exercise, medications, new text end 153.32new text begin and conflict resolution techniques;new text end 153.33new text begin (4) include a provider education component that makes use of professional new text end 153.34new text begin organizations representing chiropractors, nurses, and other primary care providers new text end 153.35new text begin and provides appropriate educational materials and activities in order to improve the new text end 154.1new text begin integration of traditional medical care with licensed chiropractic services and other new text end 154.2new text begin alternative health care services and achieve program enrollment objectives; andnew text end 154.3new text begin (5) provide to the commissioner the information and data necessary for the new text end 154.4new text begin commissioner to prepare the annual reports required under subdivision 6.new text end 154.5    new text begin Subd. 3.new text end new text begin Enrollment.new text end new text begin Enrollees from the program shall be selected by the new text end 154.6new text begin commissioner from current enrollees in the prepaid medical assistance program who new text end 154.7new text begin have, or are determined to be at significant risk of developing, neck and back problems. new text end 154.8new text begin Participation in the demonstration project shall be voluntary. The commissioner shall new text end 154.9new text begin seek to enroll, over the term of the demonstration project, ten percent of current and new text end 154.10new text begin future medical assistance enrollees who have, or are determined to be at significant risk new text end 154.11new text begin of developing, neck and back problems.new text end 154.12    new text begin Subd. 4.new text end new text begin Federal approval.new text end new text begin The commissioner shall seek any federal waivers and new text end 154.13new text begin approvals necessary to implement the demonstration project.new text end 154.14    new text begin Subd. 5.new text end new text begin Project costs.new text end new text begin The commissioner shall require the academic and research new text end 154.15new text begin institution selected, federally qualified health centers, and federally qualified health center new text end 154.16new text begin look-alikes to fund all net costs of the demonstration project.new text end 154.17    new text begin Subd. 6.new text end new text begin Annual reports.new text end new text begin The commissioner, in consultation with the commissioner new text end 154.18new text begin of health, beginning December 15, 2011, and each December 15 thereafter through new text end 154.19new text begin December 15, 2015, shall report annually to the legislature on the functional and mental new text end 154.20new text begin improvements of the populations served by the demonstration project, patient satisfaction, new text end 154.21new text begin and the cost-effectiveness of the program. The reports must also include data on hospital new text end 154.22new text begin admissions, days in hospital, rates of outpatient surgery and other services, and drug new text end 154.23new text begin utilization. The report, due December 15, 2015, must include recommendations on new text end 154.24new text begin whether the demonstration project should be continued and expanded.new text end 154.25    Sec. 79. new text begin [256B.841] WAIVER APPLICATION AND PROCESS.new text end 154.26    new text begin Subdivision 1.new text end new text begin Intent.new text end new text begin It is the intent of the legislature that medical assistance be:new text end 154.27new text begin (1) a sustainable, cost-effective, person-centered, and opportunity-driven program new text end 154.28new text begin utilizing competitive and value-based purchasing to maximize available service options; new text end 154.29new text begin andnew text end 154.30new text begin (2) a results-oriented system of coordinated care that focuses on independence new text end 154.31new text begin and choice, promotes accountability and transparency, encourages and rewards healthy new text end 154.32new text begin outcomes and responsible choices, and promotes efficiency.new text end 154.33    new text begin Subd. 2.new text end new text begin Waiver application.new text end new text begin (a) By September 1, 2011, the commissioner of new text end 154.34new text begin human services shall apply for a waiver and any necessary state plan amendments from new text end 154.35new text begin the secretary of the United States Department of Health and Human Services, including, new text end 155.1new text begin but not limited to, a waiver of the appropriate sections of title XIX of the federal Social new text end 155.2new text begin Security Act, United States Code, title 42, section 1396 et seq., or other provisions of new text end 155.3new text begin federal law that provide program flexibility and under which Minnesota will operate all new text end 155.4new text begin facets of the state's medical assistance program.new text end 155.5new text begin (b) The commissioner of human services shall provide the legislative committees new text end 155.6new text begin with jurisdiction over health and human services finance and policy with the waiver new text end 155.7new text begin application and financial and other related materials, at least ten days prior to submitting new text end 155.8new text begin the application and materials to the federal Centers for Medicare and Medicaid Services.new text end 155.9new text begin (c) If the state's waiver application is approved, the commissioner of human services new text end 155.10new text begin shall:new text end 155.11new text begin (1) notify the chairs of the legislative committees with jurisdiction over health and new text end 155.12new text begin human services finance and policy and allow the legislative committees with jurisdiction new text end 155.13new text begin over health and human services finance and policy to review the terms of the waiver; andnew text end 155.14new text begin (2) not implement the waiver until ten legislative days have passed following new text end 155.15new text begin notification of the chairs.new text end 155.16    new text begin Subd. 3.new text end new text begin Rulemaking; legislative proposals.new text end new text begin Upon acceptance of the terms of the new text end 155.17new text begin waiver, the commissioner of human services shall:new text end 155.18new text begin (1) adopt rules to implement the waiver; andnew text end 155.19new text begin (2) propose any legislative changes necessary to implement the terms of the waiver.new text end 155.20    new text begin Subd. 4.new text end new text begin Joint commission on waiver implementation.new text end new text begin (a) After acceptance new text end 155.21new text begin of the terms of the waiver, the governor shall establish a joint commission on waiver new text end 155.22new text begin implementation. The commission shall consist of eight members; four of whom shall new text end 155.23new text begin be members of the senate, not more than three from the same political party, to be new text end 155.24new text begin appointed by the Subcommittee on Committees of the senate Committee on Rules and new text end 155.25new text begin Administration, and four of whom shall be members of the house of representatives, not new text end 155.26new text begin more than three from the same political party, to be appointed by the speaker of the house.new text end 155.27new text begin (b) The commission shall:new text end 155.28new text begin (1) oversee implementation of the waiver;new text end 155.29new text begin (2) confer as necessary with state agency commissioners;new text end 155.30new text begin (3) make recommendations on services covered under the medical assistance new text end 155.31new text begin program;new text end 155.32new text begin (4) monitor and make recommendations on quality and access to care under the new text end 155.33new text begin global waiver; andnew text end 155.34new text begin (5) make recommendations for the efficient and cost-effective administration of the new text end 155.35new text begin medical assistance program under the terms of the waiver.new text end 156.1    Sec. 80. new text begin [256B.842] PRINCIPLES AND GOALS FOR MEDICAL ASSISTANCE new text end 156.2new text begin REFORM.new text end 156.3    new text begin Subdivision 1.new text end new text begin Goals for reform.new text end new text begin In developing the waiver application and new text end 156.4new text begin implementing the waiver, the commissioner of human services shall ensure that the new text end 156.5new text begin reformed medical assistance program is a person-centered, financially sustainable, and new text end 156.6new text begin cost-effective program.new text end 156.7    new text begin Subd. 2.new text end new text begin Reformed medical assistance criteria.new text end new text begin The reformed medical assistance new text end 156.8new text begin program established through the waiver must:new text end 156.9new text begin (1) empower consumers to make informed and cost-effective choices about their new text end 156.10new text begin health and offer consumers rewards for healthy decisions;new text end 156.11new text begin (2) ensure adequate access to needed services;new text end 156.12new text begin (3) enable consumers to receive individualized health care that is outcome-oriented new text end 156.13new text begin and focused on prevention, disease management, recovery, and maintaining independence;new text end 156.14new text begin (4) promote competition between health care providers to ensure best value new text end 156.15new text begin purchasing, leverage resources, and to create opportunities for improving service quality new text end 156.16new text begin and performance;new text end 156.17new text begin (5) redesign purchasing and payment methods and encourage and reward new text end 156.18new text begin high-quality and cost-effective care by incorporating and expanding upon current payment new text end 156.19new text begin reform and quality of care initiatives, including but not limited to those initiatives new text end 156.20new text begin authorized under chapter 62U; andnew text end 156.21new text begin (6) continually improve technology to take advantage of recent innovations and new text end 156.22new text begin advances that help decision makers, consumers, and providers make informed and new text end 156.23new text begin cost-effective decisions regarding health care.new text end 156.24    new text begin Subd. 3.new text end new text begin Annual report.new text end new text begin The commissioner of human services shall annually new text end 156.25new text begin submit a report to the governor and the legislature, beginning December 1, 2012, and each new text end 156.26new text begin December 1 thereafter, describing the status of the administration and implementation new text end 156.27new text begin of the waiver.new text end 156.28    Sec. 81. new text begin [256B.843] WAIVER APPLICATION REQUIREMENTS.new text end 156.29    new text begin Subdivision 1.new text end new text begin Requirements for waiver request.new text end new text begin The commissioner shall seek new text end 156.30new text begin federal approval to:new text end 156.31new text begin (1) enter into a five-year agreement with the United States Department of Health and new text end 156.32new text begin Human Services and Centers for Medicaid and Medicare Services (CMS) under section new text end 156.33new text begin 1115a to waive provisions of title XIX of the federal Social Security Act, United States new text end 156.34new text begin Code, title 42, section 1396 et seq., requiring:new text end 157.1new text begin (i) statewideness to allow for the provision of different services in different areas or new text end 157.2new text begin regions of the state;new text end 157.3new text begin (ii) comparability of services to allow for the provision of different services to new text end 157.4new text begin members of the same or different coverage groups;new text end 157.5new text begin (iii) no prohibitions restricting the amount, duration, and scope of services included new text end 157.6new text begin in the medical assistance state plan;new text end 157.7new text begin (iv) no prohibitions limiting freedom of choice of providers; andnew text end 157.8new text begin (v) retroactive payment for medical assistance, at the state's discretion;new text end 157.9new text begin (2) waive the applicable provisions of title XIX of the federal Social Security Act, new text end 157.10new text begin United States Code, title 42, section 1396 et seq., in order to:new text end 157.11new text begin (i) expand cost sharing requirements above the five percent of income threshold for new text end 157.12new text begin beneficiaries in certain populations;new text end 157.13new text begin (ii) establish health savings or power accounts that encourage and reward new text end 157.14new text begin beneficiaries who reach certain prevention and wellness targets; andnew text end 157.15new text begin (iii) implement a tiered set of parameters to use as the basis for determining new text end 157.16new text begin long-term service care and setting needs;new text end 157.17new text begin (3) modify income and resource rules in a manner consistent with the goals of the new text end 157.18new text begin reformed program;new text end 157.19new text begin (4) provide enrollees with a choice of appropriate private sector health coverage new text end 157.20new text begin options, with full federal financial participation;new text end 157.21new text begin (5) treat payments made toward the cost of care as a monthly premium for new text end 157.22new text begin beneficiaries receiving home and community-based services when applicable;new text end 157.23new text begin (6) provide health coverage and services to individuals over the age of 65 that are new text end 157.24new text begin limited in scope and are available only in the home and community-based setting;new text end 157.25new text begin (7) consolidate all home and community-based services currently provided under new text end 157.26new text begin title XIX of the federal Social Security Act, United States Code, title 42, section 1915(c), new text end 157.27new text begin into a single program of home and community-based services that include options for new text end 157.28new text begin consumer direction and shared living;new text end 157.29new text begin (8) expand disease management, care coordination, and wellness programs for all new text end 157.30new text begin medical assistance recipients; andnew text end 157.31new text begin (9) empower and encourage able-bodied medical assistance recipients to work, new text end 157.32new text begin whenever possible.new text end 157.33    new text begin Subd. 2.new text end new text begin Agency coordination.new text end new text begin The commissioner shall establish an intraagency new text end 157.34new text begin assessment and coordination unit to ensure that decision making and program planning for new text end 157.35new text begin recipients who may need long-term care, residential placement, and community support new text end 157.36new text begin services are coordinated. The assessment and coordination unit shall determine level of new text end 158.1new text begin care, develop service plans and a service budget, make referrals to appropriate settings, new text end 158.2new text begin provide education and choice counseling to consumers and providers, track utilization, new text end 158.3new text begin and monitor outcomes. new text end 158.4    Sec. 82. Minnesota Statutes 2010, section 256D.03, subdivision 3, is amended to read: 158.5    Subd. 3. General assistance medical care; eligibility. (a) Beginning April 1, 158.62010new text begin January 1, 2012new text end , the general assistance medical care program shall be administered 158.7according to section 256D.031, unless otherwise stated, except for outpatient prescription 158.8drug coverage, which shall continue to be administered under this section and funded 158.9under section 256D.031, subdivision 9, beginning June 1, 2010. 158.10    (b) Outpatient prescription drug coverage under general assistance medical care is 158.11limited to prescription drugs that: 158.12    (1) are covered under the medical assistance program as described in section 158.13256B.0625, subdivisions 13 and 13d; and 158.14    (2) are provided by manufacturers that have fully executed general assistance 158.15medical care rebate agreements with the commissioner and comply with the agreements. 158.16Outpatient prescription drug coverage under general assistance medical care must conform 158.17to coverage under the medical assistance program according to section 256B.0625, 158.18subdivisions 13 to 13h. 158.19    (c) Outpatient prescription drug coverage does not include drugs administered in a 158.20clinic or other outpatient setting. 158.21    (d) For the period beginning April 1, 2010, to May 31, 2010, general assistance 158.22medical care covers the services listed in subdivision 4. 158.23new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012.new text end 158.24    Sec. 83. Minnesota Statutes 2010, section 256D.031, subdivision 6, is amended to read: 158.25    Subd. 6. Coordinated care delivery systems. (a) Effective June 1, 2010new text begin January new text end 158.26new text begin 1, 2012new text end , the commissioner shall contract with hospitals or groups of hospitalsnew text begin , or new text end 158.27new text begin county-based purchasing plans,new text end that qualify under paragraph (b) and agree to deliver 158.28services according to this subdivision. Contracting hospitals new text begin or plans new text end shall develop 158.29and implement a coordinated care delivery system to provide health care services to 158.30individuals who are eligible for general assistance medical care under this section and who 158.31either choose to receive services through the coordinated care delivery system or who are 158.32enrolled by the commissioner under paragraph (c). The health care services provided by 158.33the system must include: (1) the services described in subdivision 4 with the exception 158.34of outpatient prescription drug coverage but shall include drugs administered in a clinic 159.1or other outpatient setting; or (2) a set of comprehensive and medically necessary health 159.2services that the recipients might reasonably require to be maintained in good health and 159.3that has been approved by the commissioner, including at a minimum, but not limited 159.4to, emergency care, medical transportation services, inpatient hospital and physician 159.5care, outpatient health services, preventive health services, mental health services, 159.6and prescription drugs administered in a clinic or other outpatient setting. Outpatient 159.7prescription drug coverage is covered on a fee-for-service basis in accordance with section 159.8256D.03, subdivision 3, and funded under subdivision 9. A hospital new text begin or plan new text end establishing a 159.9coordinated care delivery system under this subdivision must ensure that the requirements 159.10of this subdivision are met. 159.11    (b) A hospital or group of hospitalsnew text begin , or a county-based purchasing plan established new text end 159.12new text begin under section 256B.692,new text end may contract with the commissioner to develop and implement a 159.13coordinated care delivery system as follows:new text begin if the hospital or group of hospitals or plan new text end 159.14new text begin agrees to satisfy the requirements of this subdivision.new text end 159.15    (1) effective June 1, 2010, a hospital qualifies under this subdivision if: (i) during 159.16calendar year 2008, it received fee-for-service payments for services to general assistance 159.17medical care recipients (A) equal to or greater than $1,500,000, or (B) equal to or greater 159.18than 1.3 percent of net patient revenue; or (ii) a contract with the hospital is necessary to 159.19provide geographic access or to ensure that at least 80 percent of enrollees have access to 159.20a coordinated care delivery system; and 159.21    (2) effective December 1, 2010, a Minnesota hospital not qualified under clause 159.22(1) may contract with the commissioner under this subdivision if it agrees to satisfy the 159.23requirements of this subdivision. 159.24Participation by hospitals new text begin or plans new text end shall become effective quarterly on June 1, September 159.251, December 1, or March 1new text begin January 1, April 1, July 1, or October 1new text end . Hospital new text begin or plan new text end 159.26participation is effective for a period of 12 months and may be renewed for successive 159.2712-month periods. 159.28    (c) Applicants and recipients may enroll in any available coordinated care delivery 159.29system statewide. If more than one coordinated care delivery system is available, the 159.30applicant or recipient shall be allowed to choose among the systems. The commissioner 159.31may assign an applicant or recipient to a coordinated care delivery system if no choice 159.32is made by the applicant or recipient. The commissioner shall consider a recipient's zip 159.33code, city of residence, county of residence, or distance from a participating coordinated 159.34care delivery system when determining default assignment. An applicant or recipient may 159.35decline enrollment in a coordinated care delivery systemnew text begin but services are only available new text end 159.36new text begin through a coordinated care delivery systemnew text end . Upon enrollment into a coordinated care 160.1delivery system, the recipient must agree to receive all nonemergency services through the 160.2coordinated care delivery system. Enrollment in a coordinated care delivery system is 160.3for six months and may be renewed for additional six-month periods, except that initial 160.4enrollment is for six months or until the end of a recipient's period of general assistance 160.5medical care eligibility, whichever occurs first. A recipient who continues to meet the 160.6eligibility requirements of this section is not eligible to enroll in MinnesotaCare during 160.7a period of enrollment in a coordinated care delivery system. From June 1, 2010, to 160.8February 28, 2011, applicants and recipients not enrolled in a coordinated care delivery 160.9system may seek services from a hospital eligible for reimbursement under the temporary 160.10uncompensated care pool established under subdivision 8. After February 28, 2011, 160.11services are available only through a coordinated care delivery system. 160.12    (d) The hospital new text begin or plan new text end may contract and coordinate with providers and clinics 160.13for the delivery of services and shall contract with essential community providers as 160.14defined under section 62Q.19, subdivision 1, paragraph (a), clauses (1) and (2), to the 160.15extent practicable. new text begin When contracting with providers and clinics, the hospital or plan new text end 160.16new text begin shall give preference to providers and clinics certified as health care homes under section new text end 160.17new text begin 256B.0751. The hospital or plan must contract with federally qualified health centers or new text end 160.18new text begin federally qualified health center look-alikes, as defined in section 145.9269, subdivision 1, new text end 160.19new text begin that agree to accept the terms, conditions, and payment rates offered by the hospital or new text end 160.20new text begin plan to similarly situated providers. new text end If a provider or clinic new text begin or health center new text end contracts with 160.21a hospital new text begin or plan new text end to provide services through the coordinated care delivery system, the 160.22provider may not refuse to provide services to any recipient enrolled in the system, and 160.23payment for services shall be negotiated with the hospital new text begin or plan new text end and paid by the hospital 160.24new text begin or plan new text end from the system's allocation under subdivision 7. 160.25    (e) A coordinated care delivery system must: 160.26    (1) provide the covered services required under paragraph (a) to recipients enrolled 160.27in the coordinated care delivery system, and comply with the requirements of subdivision 160.284, paragraphs (b) to (g); 160.29    (2) establish a process to monitor enrollment and ensure the quality of care provided; 160.30    (3) in cooperation with counties, coordinate the delivery of health care services with 160.31existing homeless prevention, supportive housing, and rent subsidy programs and funding 160.32administered by the Minnesota Housing Finance Agency under chapter 462A; and 160.33    (4) adopt innovative and cost-effective methods of care delivery and coordination, 160.34which may include the use of allied health professionals, telemedicine, patient educators, 160.35care coordinators, and community health workers. 161.1    (f) The hospital new text begin or plan new text end may require a recipient to designate a primary care provider 161.2or a primary care clinic. The hospital new text begin or plan new text end may limit the delivery of services to a 161.3network of providers who have contracted with the hospital new text begin or plan new text end to deliver services in 161.4accordance with this subdivision, and require a recipient to seek services only within this 161.5network. The hospital new text begin or plan new text end may also require a referral to a provider before the service 161.6is eligible for payment. A coordinated care delivery system is not required to provide 161.7payment to a provider who is not employed by or under contract with the system for 161.8services provided to a recipient enrolled in the system, except in cases of an emergency. 161.9For purposes of this section, emergency services are defined in accordance with Code of 161.10Federal Regulations, title 42, section 438.114 (a). 161.11    (g) A recipient enrolled in a coordinated care delivery system has the right to appeal 161.12to the commissioner according to section 256.045. 161.13    (h) The state shall not be liable for the payment of any cost or obligation incurred 161.14by the coordinated care delivery system. 161.15    (i) The hospital new text begin or plan new text end must provide the commissioner with data necessary for 161.16assessing enrollment, quality of care, cost, and utilization of services. Each hospital new text begin or new text end 161.17new text begin plan new text end must provide, on a quarterly basis on a form prescribed by the commissioner for each 161.18recipient served by the coordinated care delivery system, the services provided, the cost of 161.19services provided, and the actual payment amount for the services provided and any other 161.20information the commissioner deems necessary to claim federal Medicaid match. The 161.21commissioner must provide this data to the legislature on a quarterly basis. 161.22    (j) Effective June 1, 2010, The provisions of section 256.9695, subdivision 2, 161.23paragraph (b), do not apply to general assistance medical care provided under this section. 161.24    (k) Notwithstanding any other provision in this section to the contrary, for 161.25participation beginning September 1, 2010, the commissioner shall offer the same contract 161.26terms related to new text begin shall negotiate new text end an enrollment threshold formula and financial liability 161.27protections tonew text begin withnew text end a hospital or group of hospitals new text begin or plan new text end qualified under this subdivision 161.28to develop and implement a coordinated care delivery system as those contained in the 161.29coordinated care delivery system contracts effective June 1, 2010. 161.30    (l) If sections 256B.055, subdivision 15, and 256B.056, subdivisions 3 and 4, are 161.31implemented effective July 1, 2010, this subdivision must not be implemented. 161.32new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012.new text end 161.33    Sec. 84. Minnesota Statutes 2010, section 256D.031, subdivision 7, is amended to read: 161.34    Subd. 7. Payments; rate setting for the hospital coordinated care delivery 161.35system. (a) Effective for general assistance medical care services, with the exception 162.1of outpatient prescription drug coverage, provided on or after June 1, 2010, through a 162.2coordinated care delivery system, the commissioner shall allocate the annual appropriation 162.3for the coordinated care delivery system to hospitals new text begin or plans new text end participating under 162.4subdivision 6 in quarterly payments, beginning on the first scheduled warrant on or after 162.5June 1, 2010new text begin March 1, 2012new text end . The payment shall be allocated among all hospitals new text begin or plans new text end 162.6qualified to participate on the allocation date as follows:new text begin based upon the enrollment new text end 162.7new text begin thresholds negotiated with the commissioner.new text end 162.8    (1) each hospital or group of hospitals shall be allocated an initial amount based on 162.9the hospital's or group of hospitals' pro rata share of calendar year 2008 payments for 162.10general assistance medical care services to all participating hospitals; 162.11    (2) the initial allocations to Hennepin County Medical Center; Regions Hospital; 162.12Saint Mary's Medical Center; and the University of Minnesota Medical Center, Fairview, 162.13shall be increased to 110 percent of the value determined in clause (1); 162.14    (3) the initial allocation to hospitals not listed in clause (2) shall be reduced a pro rata 162.15amount in order to keep the allocations within the limit of available appropriations; and 162.16    (4) the amounts determined under clauses (1) to (3) shall be allocated to participating 162.17hospitals. 162.18The commissioner may prospectively reallocate payments to participating hospitals new text begin or new text end 162.19new text begin plans new text end on a biannual basis to ensure that final allocations reflect actual coordinated care 162.20delivery system enrollment. The 2008 base year shall be updated by one calendar year 162.21each June 1, beginning June 1, 2011. 162.22    (b) Beginning June 1, 2010, and every quarter beginning in June thereafter, the 162.23commissioner shall make one-third of the quarterly payment in June and the remaining 162.24two-thirds of the quarterly payment in July to each participating hospital or group of 162.25hospitals. 162.26    (c)new text begin (b)new text end In order to be reimbursed under this section, nonhospital providers of health 162.27care services shall contract with one or more hospitalsnew text begin or plansnew text end described in paragraph (a) 162.28to provide services to general assistance medical care recipients through the coordinated 162.29care delivery system established by the hospitalnew text begin or plannew text end . The hospitalnew text begin or plannew text end shall 162.30reimburse bills submitted by nonhospital providers participating under this paragraph at a 162.31rate negotiated between the hospitalnew text begin or plannew text end and the nonhospital provider. 162.32    (d)new text begin (c)new text end The commissioner shall apply for federal matching funds under section 162.33256B.199 , paragraphs (a) to (d), for expenditures under this subdivision. 162.34    (e)new text begin (d)new text end Outpatient prescription drug coverage is provided in accordance with section 162.35256D.03, subdivision 3 , and paid on a fee-for-service basis under subdivision 9. 163.1new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012.new text end 163.2    Sec. 85. Minnesota Statutes 2010, section 256D.031, subdivision 10, is amended to 163.3read: 163.4    Subd. 10. Assistance for veterans. Hospitalsnew text begin and plansnew text end participating in the 163.5coordinated care delivery system under subdivision 6 shall consult with counties, county 163.6veterans service officers, and the Veterans Administration to identify other programs for 163.7which general assistance medical care recipients enrolled in their system are qualified. 163.8    Sec. 86. Minnesota Statutes 2010, section 256L.01, subdivision 4a, is amended to read: 163.9    Subd. 4a. Gross individual or gross family income. (a) "Gross individual or gross 163.10family income" for nonfarm self-employed means income calculated for the 12-monthnew text begin new text end 163.11new text begin six-monthnew text end period of eligibility using as a baseline the adjusted gross income reported 163.12on the applicant's federal income tax form for the previous year and adding back in 163.13depreciation, and carryover net operating loss amounts that apply to the business in which 163.14the family is currently engaged. 163.15(b) "Gross individual or gross family income" for farm self-employed means 163.16income calculated for the 12-monthnew text begin six-monthnew text end period of eligibility using as the baseline 163.17the adjusted gross income reported on the applicant's federal income tax form for the 163.18previous year. 163.19(c) "Gross individual or gross family income" means the total income for all family 163.20members, calculated for the 12-monthnew text begin six-monthnew text end period of eligibility. 163.21    Sec. 87. Minnesota Statutes 2010, section 256L.02, subdivision 3, is amended to read: 163.22    Subd. 3. Financial management. (a) The commissioner shall manage spending for 163.23the MinnesotaCare program in a manner that maintains a minimum reserve. As part of 163.24each state revenue and expenditure forecast, the commissioner must make an assessment 163.25of the expected expenditures for the covered services for the remainder of the current 163.26biennium and for the following biennium. The estimated expenditure, including the 163.27reserve, shall be compared to an estimate of the revenues that will be available in the health 163.28care access fund. Based on this comparison, and after consulting with the chairs of the 163.29house of representatives Ways and Means Committee and the senate Finance Committee, 163.30and the Legislative Commission on Health Care Access, the commissioner shall, as 163.31necessary, make the adjustments specified in paragraph (b) to ensure that expenditures 163.32remain within the limits of available revenues for the remainder of the current biennium 163.33and for the following biennium. The commissioner shall not hire additional staff using 164.1appropriations from the health care access fund until the commissioner of management 164.2and budget makes a determination that the adjustments implemented under paragraph (b) 164.3are sufficient to allow MinnesotaCare expenditures to remain within the limits of available 164.4revenues for the remainder of the current biennium and for the following biennium. 164.5(b) The adjustments the commissioner shall use must be implemented in this order: 164.6first, stop enrollment of single adults and households without children; second, upon 45 164.7days' notice, stop coverage of single adults and households without children already 164.8enrolled in the MinnesotaCare program; third, upon 90 days' notice, decrease the premium 164.9subsidy amounts by ten percent fornew text begin children innew text end families with gross annual income above 164.10200 percent of the federal poverty guidelines; fourth, upon 90 days' notice, decrease the 164.11premium subsidy amounts by ten percent fornew text begin children innew text end families with gross annual income 164.12at or below 200 percent; and fifth, require applicants to be uninsured for at least six months 164.13prior to eligibility in the MinnesotaCare program. If these measures are insufficient to 164.14limit the expenditures to the estimated amount of revenue, the commissioner shall further 164.15limit enrollment or decrease premium subsidies. 164.16new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012, or upon federal new text end 164.17new text begin approval, whichever is later, and expires June 30, 2013. The commissioner shall notify new text end 164.18new text begin the revisor of statutes when federal approval is obtained and publish a notice in the State new text end 164.19new text begin Register.new text end 164.20    Sec. 88. Minnesota Statutes 2010, section 256L.02, subdivision 3, is amended to read: 164.21    Subd. 3. Financial management. (a) The commissioner shall manage spending for 164.22the MinnesotaCare program in a manner that maintains a minimum reserve. As part of 164.23each state revenue and expenditure forecast, the commissioner must make an assessment 164.24of the expected expenditures for the covered services for the remainder of the current 164.25biennium and for the following biennium. The estimated expenditure, including the 164.26reserve, shall be compared to an estimate of the revenues that will be available in the health 164.27care access fund. Based on this comparison, and after consulting with the chairs of the 164.28house of representatives Ways and Means Committee and the senate Finance Committee, 164.29and the Legislative Commission on Health Care Access, the commissioner shall, as 164.30necessary, make the adjustments specified in paragraph (b) to ensure that expenditures 164.31remain within the limits of available revenues for the remainder of the current biennium 164.32and for the following biennium. The commissioner shall not hire additional staff using 164.33appropriations from the health care access fund until the commissioner of management 164.34and budget makes a determination that the adjustments implemented under paragraph (b) 165.1are sufficient to allow MinnesotaCare expenditures to remain within the limits of available 165.2revenues for the remainder of the current biennium and for the following biennium. 165.3(b) The adjustments the commissioner shall use must be implemented in this order: 165.4first, stop enrollment of single adults and households without children; second, upon 45 165.5days' notice, stop coverage of single adults and households without children already 165.6enrolled in the MinnesotaCare program; third, upon 90 days' notice, decrease the premium 165.7subsidy amounts by ten percent for families with gross annual income above 200 percent 165.8of the federal poverty guidelines; fourth, upon 90 days' notice, decrease the premium 165.9subsidy amounts by ten percent for families with gross annual income at or below 200 165.10percent; and fifth, require applicants to be uninsured for at least six months prior to 165.11eligibility in the MinnesotaCare program. If these measures are insufficient to limit the 165.12expenditures to the estimated amount of revenue, the commissioner shall further limit 165.13enrollment or decrease premium subsidies. 165.14    Sec. 89. Minnesota Statutes 2010, section 256L.03, subdivision 3, is amended to read: 165.15    Subd. 3. Inpatient hospital services. (a) Covered health services shall include 165.16inpatient hospital services, including inpatient hospital mental health services and inpatient 165.17hospital and residential chemical dependency treatment, subject to those limitations 165.18necessary to coordinate the provision of these services with eligibility under the medical 165.19assistance spenddown. The inpatient hospital benefit for adult enrollees who qualify under 165.20section 256L.04, subdivision 7, or who qualify under section 256L.04, subdivisions 1 and 165.212 , with family gross income that exceeds 200 percent of the federal poverty guidelines or 165.22215 percent of the federal poverty guidelines on or after July 1, 2009, and who are not 165.23pregnant, is subject to an annual limit of $10,000. 165.24    (b) Admissions for inpatient hospital services paid for under section 256L.11, 165.25subdivision 3 , must be certified as medically necessary in accordance with Minnesota 165.26Rules, parts 9505.0500 to 9505.0540, except as provided in clauses (1) and (2): 165.27    (1) all admissions must be certified, except those authorized under rules established 165.28under section 254A.03, subdivision 3, or approved under Medicare; and 165.29    (2) payment under section 256L.11, subdivision 3, shall be reduced by five percent 165.30for admissions for which certification is requested more than 30 days after the day of 165.31admission. The hospital may not seek payment from the enrollee for the amount of the 165.32payment reduction under this clause. 165.33new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012, or upon federal new text end 165.34new text begin approval, whichever is later, and expires June 30, 2013. The commissioner shall notify new text end 166.1new text begin the revisor of statutes when federal approval is obtained and publish a notice in the State new text end 166.2new text begin Register.new text end 166.3    Sec. 90. Minnesota Statutes 2010, section 256L.03, subdivision 5, is amended to read: 166.4    Subd. 5. Co-payments and coinsurancenew text begin Cost-sharingnew text end . (a) Except as provided in 166.5paragraphs (b) andnew text begin ,new text end (c),new text begin and (h),new text end the MinnesotaCare benefit plan shall include the following 166.6co-payments and coinsurancenew text begin cost-sharingnew text end requirements for all enrollees: 166.7    (1) ten percent of the paid charges for inpatient hospital services for adult enrollees, 166.8subject to an annual inpatient out-of-pocket maximum of $1,000 per individual; 166.9    (2) $3 per prescription for adult enrollees; 166.10    (3) $25 for eyeglasses for adult enrollees; 166.11    (4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an 166.12episode of service which is required because of a recipient's symptoms, diagnosis, or 166.13established illness, and which is delivered in an ambulatory setting by a physician or 166.14physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 166.15audiologist, optician, or optometrist; and 166.16    (5) $6 for nonemergency visits to a hospital-based emergency room for services 166.17provided through December 31, 2010, and $3.50 effective January 1, 2011new text begin ; andnew text end 166.18new text begin (6) a family deductible equal to the maximum amount allowed under Code of new text end 166.19new text begin Federal Regulations, title 42, part 447.54new text end . 166.20    (b) Paragraph (a), clause (1), doesnew text begin and paragraph (e) donew text end not apply to parents and 166.21relative caretakers of children under the age of 21. 166.22    (c) Paragraph (a) does not apply to pregnant women and children under the age of 21. 166.23    (d) Paragraph (a), clause (4), does not apply to mental health services. 166.24    (e) Adult enrollees with family gross income that exceeds 200 percent of the federal 166.25poverty guidelines or 215 percent of the federal poverty guidelines on or after July 1, 2009, 166.26and who are not pregnant shall be financially responsible for the coinsurance amount, if 166.27applicable, and amounts which exceed the $10,000 inpatient hospital benefit limit. 166.28    (f) When a MinnesotaCare enrollee becomes a member of a prepaid health plan, 166.29or changes from one prepaid health plan to another during a calendar year, any charges 166.30submitted towards the $10,000 annual inpatient benefit limit, and any out-of-pocket 166.31expenses incurred by the enrollee for inpatient services, that were submitted or incurred 166.32prior to enrollment, or prior to the change in health plans, shall be disregarded. 166.33(g) MinnesotaCare reimbursements to fee-for-service providers and payments to 166.34managed care plans or county-based purchasing plans shall not be increased as a result of 166.35the reduction of the co-payments in paragraph (a), clause (5), effective January 1, 2011. 167.1new text begin (h) Effective January 1, 2012, the following co-payments for nonpreventive visits new text end 167.2new text begin shall apply to enrollees who are adults without children eligible under section 256L.04, new text end 167.3new text begin subdivision 7:new text end 167.4new text begin (1) $3 for visits to providers whose average, risk-adjusted, total annual cost of care new text end 167.5new text begin per MinnesotaCare enrollee is at the 60th percentile or lower for providers of the same new text end 167.6new text begin type;new text end 167.7new text begin (2) $6 for visits to providers whose average, risk-adjusted, total annual cost of care new text end 167.8new text begin per MinnesotaCare enrollee is greater than the 60th percentile but does not exceed the new text end 167.9new text begin 80th percentile for providers of the same type; andnew text end 167.10new text begin (3) $10 for visits to providers whose average, risk-adjusted, total annual cost of new text end 167.11new text begin care per MinnesotaCare enrollee is greater than the 80th percentile for providers of the new text end 167.12new text begin same type.new text end 167.13new text begin Each managed care and county-based purchasing plan shall calculate the average, new text end 167.14new text begin risk-adjusted, total annual cost of care for providers under this paragraph using a new text end 167.15new text begin methodology that has been approved by the commissioner.new text end 167.16new text begin EFFECTIVE DATE.new text end new text begin The amendments to paragraph (e) are effective January 1, new text end 167.17new text begin 2012, or upon federal approval, whichever is later, and expires June 30, 2013. The new text end 167.18new text begin commissioner shall notify the revisor of statutes when federal approval is obtained and new text end 167.19new text begin publish a notice in the State Register.new text end 167.20    Sec. 91. new text begin [256L.031] HEALTHY MINNESOTA CONTRIBUTION PROGRAM.new text end 167.21    new text begin Subdivision 1.new text end new text begin Defined contributions to enrollees.new text end new text begin (a) Beginning January 1, 2012, new text end 167.22new text begin the commissioner shall provide each MinnesotaCare enrollee eligible under section new text end 167.23new text begin 256L.04, subdivision 7, with gross family income equal to or greater than 133 percent new text end 167.24new text begin of the federal poverty guidelines, with a monthly defined contribution to purchase health new text end 167.25new text begin coverage under a health plan as defined in section 62A.011, subdivision 3. Beginning new text end 167.26new text begin January 1, 2012, or upon federal approval, whichever is later, the commissioner shall new text end 167.27new text begin provide each MinnesotaCare enrollee eligible under section 256L.04, subdivision 1, with new text end 167.28new text begin gross family income equal to or greater than 133 percent of the federal poverty guidelines, new text end 167.29new text begin with a monthly defined contribution to purchase health coverage under a health plan as new text end 167.30new text begin defined in section 62A.011, subdivision 3, offered by a health plan company as defined new text end 167.31new text begin in section 62Q.01, subdivision 4.new text end 167.32new text begin (b) Enrollees eligible under paragraph (a) shall not be charged premiums under new text end 167.33new text begin section 256L.15 and are exempt from the managed care enrollment requirement of section new text end 167.34new text begin 256L.12.new text end 168.1new text begin (c) Sections 256L.03; 256L.05, subdivision 3; and 256L.11 do not apply to new text end 168.2new text begin enrollees eligible under paragraph (a). Covered services, cost-sharing, disenrollment new text end 168.3new text begin for nonpayment of premium, enrollee appeal rights and complaint procedures, and the new text end 168.4new text begin effective date of coverage for enrollees eligible under paragraph (a) shall be as provided new text end 168.5new text begin under the terms of the health plan purchased by the enrollee.new text end 168.6new text begin (d) Unless otherwise provided in this section, all MinnesotaCare requirements new text end 168.7new text begin related to eligibility, income and asset methodology, income reporting, and program new text end 168.8new text begin administration continue to apply to enrollees obtaining coverage under this section.new text end 168.9    new text begin Subd. 2.new text end new text begin Use of defined contribution.new text end new text begin An enrollee may use up to the monthly new text end 168.10new text begin defined contribution to pay premiums for coverage under a health plan as defined in new text end 168.11new text begin section 62A.011, subdivision 3.new text end 168.12    new text begin Subd. 3.new text end new text begin Determination of defined contribution amount.new text end new text begin (a) The commissioner new text end 168.13new text begin shall determine the defined contribution sliding scale using the base contribution specified new text end 168.14new text begin in paragraph (b) for the specified age ranges. The commissioner shall use a sliding scale new text end 168.15new text begin for defined contributions that provides:new text end 168.16new text begin (1) persons with household incomes equal to 133 percent of the federal poverty new text end 168.17new text begin guidelines with a defined contribution of 150 percent of the base contribution;new text end 168.18new text begin (2) persons with household incomes equal to 175 percent of the federal poverty new text end 168.19new text begin guidelines with a defined contribution of 100 percent of the base contribution;new text end 168.20new text begin (3) persons with household incomes equal to or greater than 250 percent of new text end 168.21new text begin the federal poverty guidelines with a defined contribution of 80 percent of the base new text end 168.22new text begin contribution; andnew text end 168.23new text begin (4) persons with household incomes in evenly spaced increments between the new text end 168.24new text begin percentages of the federal poverty guideline specified in clauses (1) to (3) with a base new text end 168.25new text begin contribution that is a percentage interpolated from the defined contribution percentages new text end 168.26new text begin specified in clauses (1) to (3).new text end 168.27 new text begin Agenew text end new text begin Monthly Per-Person Base Contributionnew text end 168.28 new text begin Under 21new text end new text begin $122.79new text end 168.29 new text begin 21-29new text end new text begin 122.79new text end 168.30 new text begin 30-31new text end new text begin 129.19new text end 168.31 new text begin 32-33new text end new text begin 132.38new text end 168.32 new text begin 34-35new text end new text begin 134.31new text end 168.33 new text begin 36-37new text end new text begin 136.06new text end 168.34 new text begin 38-39new text end new text begin 141.02new text end 168.35 new text begin 40-41new text end new text begin 151.25new text end 168.36 new text begin 42-43new text end new text begin 159.89new text end 168.37 new text begin 44-45new text end new text begin 175.08new text end 168.38 new text begin 46-47new text end new text begin 191.71new text end 169.1 new text begin 48-49new text end new text begin 213.13new text end 169.2 new text begin 50-51new text end new text begin 239.51new text end 169.3 new text begin 52-53new text end new text begin 266.69new text end 169.4 new text begin 54-55new text end new text begin 293.88new text end 169.5 new text begin 56-57new text end new text begin 323.77new text end 169.6 new text begin 58-59new text end new text begin 341.20new text end 169.7 new text begin 60+new text end new text begin 357.19new text end
169.8new text begin (b) The commissioner shall multiply the defined contribution amounts developed new text end 169.9new text begin under paragraph (a) by 1.20 for enrollees who are denied coverage under an individual new text end 169.10new text begin health plan by a health plan company and who purchase coverage through the Minnesota new text end 169.11new text begin Comprehensive Health Association.new text end 169.12new text begin (c) Notwithstanding paragraphs (a) and (b), the monthly defined contribution shall new text end 169.13new text begin not exceed 90 percent of the monthly premium for the health plan purchased by the new text end 169.14new text begin enrollee. If the enrollee purchases coverage under a health plan that does not include new text end 169.15new text begin mental health services and chemical dependency treatment services, the monthly defined new text end 169.16new text begin contribution amount determined under this subdivision shall be reduced by five percent.new text end 169.17    new text begin Subd. 4.new text end new text begin Administration by commissioner.new text end new text begin The commissioner shall administer the new text end 169.18new text begin defined contributions. The commissioner shall:new text end 169.19    new text begin (1) calculate and process defined contributions for enrollees; andnew text end 169.20    new text begin (2) pay the defined contribution amount to health plan companies or the Minnesota new text end 169.21new text begin Comprehensive Health Association, as applicable, for enrollee health plan coverage.new text end 169.22    new text begin Subd. 5.new text end new text begin Assistance to enrollees.new text end new text begin The commissioner of human services, in new text end 169.23new text begin consultation with the commissioner of commerce, shall develop an efficient and new text end 169.24new text begin cost-effective method of referring eligible applicants to professional insurance agent new text end 169.25new text begin associations.new text end 169.26    new text begin Subd. 6.new text end new text begin Minnesota Comprehensive Health Association (MCHA).new text end new text begin Beginning new text end 169.27new text begin January 1, 2012, MinnesotaCare enrollees who are denied coverage under an individual new text end 169.28new text begin health plan by a health plan company are eligible for coverage through a health plan new text end 169.29new text begin offered by the MCHA and may enroll in MCHA according to section 62E.14. Any new text end 169.30new text begin difference between the revenue and covered losses to the MCHA related to implementation new text end 169.31new text begin of this section shall be paid to the MCHA from the health care access fund.new text end 169.32    new text begin Subd. 7.new text end new text begin Federal approval.new text end new text begin The commissioner shall seek all federal waivers new text end 169.33new text begin and approvals necessary to implement coverage under this section for MinnesotaCare new text end 169.34new text begin enrollees eligible under section 256L.04, subdivision 1, with gross family incomes equal new text end 169.35new text begin to or greater than 133 percent of the federal poverty guidelines, while continuing to new text end 169.36new text begin receive federal matching funds.new text end 170.1    Sec. 92. Minnesota Statutes 2010, section 256L.04, subdivision 1, is amended to read: 170.2    Subdivision 1. Families with children. (a) Families with Children with family 170.3income equal to or less than 275 percent of the federal poverty guidelines for the 170.4applicable family size new text begin and adults in families with children with family income equal to or new text end 170.5new text begin less than 200 percent of the federal poverty guidelines for the applicable family size, new text end shall 170.6be eligible for MinnesotaCare according to this section. All other provisions of sections 170.7256L.01 to 256L.18, including the insurance-related barriers to enrollment under section 170.8256L.07 , shall apply unless otherwise specified. 170.9    (b) Parents who enroll in the MinnesotaCare program must also enroll their children, 170.10if the children are eligible. Children may be enrolled separately without enrollment by 170.11parents. However, if one parent in the household enrolls, both parents must enroll, unless 170.12other insurance is available. If one child from a family is enrolled, all children must 170.13be enrolled, unless other insurance is available. If one spouse in a household enrolls, 170.14the other spouse in the household must also enroll, unless other insurance is available. 170.15Families cannot choose to enroll only certain uninsured members. 170.16    (c) Beginning October 1, 2003, the dependent sibling definition no longer applies 170.17to the MinnesotaCare program. These persons are no longer counted in the parental 170.18household and may apply as a separate household. 170.19    (d) Beginning July 1, 2010, or upon federal approval, whichever is later, parents are 170.20not eligible for MinnesotaCare if their gross income exceeds $57,500. 170.21    (e) Children formerly enrolled in medical assistance and automatically deemed 170.22eligible for MinnesotaCare according to section 256B.057, subdivision 2c, are exempt 170.23from the requirements of this section until renewal. 170.24(f) [Reserved.] 170.25new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012, or upon federal new text end 170.26new text begin approval, whichever is later, and expires June 30, 2013, except that the amendment new text end 170.27new text begin striking paragraph (e) is effective retroactively from October 1, 2008, does not expire, new text end 170.28new text begin and federal approval is no longer necessary. The commissioner shall notify the revisor of new text end 170.29new text begin statutes when federal approval is obtained and publish a notice in the State Register.new text end 170.30    Sec. 93. Minnesota Statutes 2010, section 256L.04, subdivision 7, is amended to read: 170.31    Subd. 7. Single adults and households with no children. (a) The definition of 170.32eligible personsnew text begin , through December 31, 2011,new text end includes all individuals and households with 170.33no children who have gross family incomes that are equal to or less than 200 percent 170.34of the federal poverty guidelines. 171.1    (b) Effective July 1, 2009new text begin January 1, 2012new text end , the definition of eligible persons includes 171.2all individuals and households with no children who have gross family incomes that are 171.3new text begin greater than 75 percent of the federal poverty guidelines and new text end equal to or less than 250new text begin 200new text end 171.4percent of the federal poverty guidelines.new text begin Effective July 1, 2013, the maximum income new text end 171.5new text begin limit under this paragraph is increased to 250 percent of the federal poverty guidelines.new text end 171.6new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012.new text end 171.7    Sec. 94. Minnesota Statutes 2010, section 256L.05, subdivision 2, is amended to read: 171.8    Subd. 2. Commissioner's duties. new text begin (a) new text end The commissioner or county agency shall 171.9use electronic verification as the primary method of income verification. If there is a 171.10discrepancy between reported income and electronically verified income, an individual 171.11may be required to submit additional verification. In addition, the commissioner shall 171.12perform random audits to verify reported income and eligibility. The commissioner 171.13may execute data sharing arrangements with the Department of Revenue and any other 171.14governmental agency in order to perform income verification related to eligibility and 171.15premium payment under the MinnesotaCare program. 171.16new text begin (b) In determining eligibility for MinnesotaCare, the commissioner shall require new text end 171.17new text begin applicants and enrollees seeking renewal of eligibility to verify both earned and unearned new text end 171.18new text begin income. The commissioner shall also require applicants and enrollees to submit the new text end 171.19new text begin names of their employers and a contact name with a phone number for each employer new text end 171.20new text begin for purposes of verifying whether the applicant or enrollee, and any dependents, are new text end 171.21new text begin eligible for employer-subsidized coverage. Data collected is nonpublic data as defined new text end 171.22new text begin in section 13.02, subdivision 9.new text end 171.23    Sec. 95. Minnesota Statutes 2010, section 256L.05, subdivision 3a, is amended to read: 171.24    Subd. 3a. Renewal of eligibility. (a) Beginning July 1, 2007new text begin 2011new text end , an enrollee's 171.25eligibility must be renewed every 12new text begin sixnew text end months. The 12-month period begins in the 171.26month after the month the application is approved. 171.27    (b) new text begin The first six-month period of eligibility begins the month the application is new text end 171.28new text begin received by the commissioner. The effective date of coverage within the first six-month new text end 171.29new text begin period of eligibility is as provided in subdivision 3. new text end Each new period of eligibility must 171.30take into account any changes in circumstances that impact eligibility and premium 171.31amount. An enrollee must provide all the information needed to redetermine eligibility 171.32by the first day of the month that ends the eligibility period. If there is no change in 171.33circumstances, the enrollee may renew eligibility at designated locations that include 171.34community clinics and health care providers' offices. The designated sites shall forward 172.1the renewal forms to the commissioner. The commissioner may establish criteria and 172.2timelines for sites to forward applications to the commissioner or county agencies. The 172.3premium for the new period of eligibility must be received as provided in section 256L.06 172.4in order for eligibility to continue. 172.5    (c) An enrollee who fails to submit renewal forms and related documentation 172.6necessary for verification of continued eligibility in a timely manner shall remain eligible 172.7for one additional month beyond the end of the current eligibility period before being 172.8disenrolled. The enrollee remains responsible for MinnesotaCare premiums for the 172.9additional month. 172.10    Sec. 96. Minnesota Statutes 2010, section 256L.05, subdivision 5, is amended to read: 172.11    Subd. 5. Availability of private insurance. The commissioner, in consultation with 172.12the commissioners of health and commerce, shall provide information regarding the 172.13availability of private health insurance coverage and the possibility of disenrollment 172.14under section 256L.07, subdivision 1, paragraphs (b) and (c), to all: (1) families enrolled 172.15in the MinnesotaCare program whose gross family income is equal to or more than 225 172.16percent of the federal poverty guidelines; and (2) single adults and households without 172.17children enrolled in the MinnesotaCare program whose gross family income is equal to 172.18or more than 165 percent of the federal poverty guidelines. This information must be 172.19provided upon initial enrollment and annually thereafter. The commissioner shall also 172.20include information regarding the availability of private health insurance coverage in the 172.21notice of ineligibility provided to persons subject to disenrollment under section 256L.07, 172.22subdivision 1 , paragraphs (b) and (c). 172.23new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012, and expires June new text end 172.24new text begin 30, 2013.new text end 172.25    Sec. 97. Minnesota Statutes 2010, section 256L.05, is amended by adding a subdivision 172.26to read: 172.27    new text begin Subd. 6.new text end new text begin Referral of veterans.new text end new text begin The commissioner shall ensure that all applicants new text end 172.28new text begin for MinnesotaCare with incomes less than 133 percent of the federal poverty guidelines new text end 172.29new text begin who identify themselves as veterans are referred to a county veterans service officer for new text end 172.30new text begin assistance in applying to the United States Department of Veterans Affairs for any veterans new text end 172.31new text begin benefits for which they may be eligible.new text end 172.32    Sec. 98. Minnesota Statutes 2010, section 256L.07, subdivision 1, is amended to read: 173.1    Subdivision 1. General requirements. (a) Children enrolled in the original 173.2children's health plan as of September 30, 1992, children who enrolled in the 173.3MinnesotaCare program after September 30, 1992, pursuant to Laws 1992, chapter 549, 173.4article 4, section 17, and children who have family gross incomes that are equal to or 173.5less than 150 percent of the federal poverty guidelines are eligible without meeting 173.6the requirements of subdivision 2 and the four-month requirement in subdivision 3, as 173.7long as they maintain continuous coverage in the MinnesotaCare program or medical 173.8assistance. Children who apply for MinnesotaCare on or after the implementation date 173.9of the employer-subsidized health coverage program as described in Laws 1998, chapter 173.10407, article 5, section 45, who have family gross incomes that are equal to or less than 150 173.11percent of the federal poverty guidelines, must meet the requirements of subdivision 2 to 173.12be eligible for MinnesotaCare. 173.13    new text begin (b) new text end Families enrolled in MinnesotaCare under section 256L.04, subdivision 1, whose 173.14income increases above 275 percent of the federal poverty guidelines, are no longer 173.15eligible for the program and shall be disenrolled by the commissioner. Beginning January 173.161, 2008, 173.17new text begin (c)new text end Individuals enrolled in MinnesotaCare under section 256L.04, subdivision 7, 173.18whose income increases above 200 percent of the federal poverty guidelines or 250 173.19percent of the federal poverty guidelines on or after July 1, 2009,new text begin the limits described new text end 173.20new text begin in section 256L.04, subdivision 7,new text end are no longer eligible for the program and shall be 173.21disenrolled by the commissioner. 173.22new text begin (d)new text end For persons disenrolled under this subdivision, MinnesotaCare coverage 173.23terminates the last day of the calendar month following the month in which the 173.24commissioner determines that the income of a family or individual exceeds program 173.25income limits. 173.26    (b)new text begin (e)new text end Notwithstanding paragraph (a), children may remain enrolled in 173.27MinnesotaCare if ten percent of their gross individual or gross family income as defined 173.28in section 256L.01, subdivision 4, is less than the annual premium for a new text begin six-month new text end 173.29policy with a $500 deductible available through the Minnesota Comprehensive Health 173.30Association. Children who are no longer eligible for MinnesotaCare under this clause shall 173.31be given a 12-month notice period from the date that ineligibility is determined before 173.32disenrollment. The premium for children remaining eligible under this clause shall be the 173.33maximum premium determined under section 256L.15, subdivision 2, paragraph (b). 173.34    (c)new text begin (f)new text end Notwithstanding paragraphs (a) and (b)new text begin (e)new text end , parents are not eligible for 173.35MinnesotaCare if gross household income exceeds $57,500 for the 12-monthnew text begin $25,000 for new text end 173.36new text begin the six-monthnew text end period of eligibility. 174.1new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012, and expires June new text end 174.2new text begin 30, 2013, except the amendments to the new paragraphs (e) and (f) are effective July 1, new text end 174.3new text begin 2011, and do not expire.new text end 174.4    Sec. 99. Minnesota Statutes 2010, section 256L.07, subdivision 1, is amended to read: 174.5    Subdivision 1. General requirements. (a) Children enrolled in the original 174.6children's health plan as of September 30, 1992, children who enrolled in the 174.7MinnesotaCare program after September 30, 1992, pursuant to Laws 1992, chapter 549, 174.8article 4, section 17, and children who have family gross incomes that are equal to or 174.9less than 150 percent of the federal poverty guidelines are eligible without meeting 174.10the requirements of subdivision 2 and the four-month requirement in subdivision 3, as 174.11long as they maintain continuous coverage in the MinnesotaCare program or medical 174.12assistance. Children who apply for MinnesotaCare on or after the implementation date 174.13of the employer-subsidized health coverage program as described in Laws 1998, chapter 174.14407, article 5, section 45, who have family gross incomes that are equal to or less than 150 174.15percent of the federal poverty guidelines, must meet the requirements of subdivision 2 to 174.16be eligible for MinnesotaCare. 174.17    new text begin (b) new text end Families enrolled in MinnesotaCare under section 256L.04, subdivision 1, whose 174.18income increases above 275 percent of the federal poverty guidelinesnew text begin the limits described new text end 174.19new text begin in section 256L.04, subdivision 1new text end , are no longer eligible for the program and shall be 174.20disenrolled by the commissioner. 174.21new text begin (c)new text end Beginning January 1, 2008, individuals enrolled in MinnesotaCare under section 174.22256L.04, subdivision 7 , whose income increases above 200 percent of the federal poverty 174.23guidelines or 250 percent of the federal poverty guidelines on or after July 1, 2009, are no 174.24longer eligible for the program and shall be disenrolled by the commissioner. 174.25new text begin (d)new text end For persons disenrolled under this subdivision, MinnesotaCare coverage 174.26terminates the last day of the calendar month following the month in which the 174.27commissioner determines that the income of a family or individual exceeds program 174.28income limits. 174.29    (b)new text begin (e)new text end Notwithstanding paragraph (a), children may remain enrolled in 174.30MinnesotaCare if ten percent of their gross individual or gross family income as defined in 174.31section 256L.01, subdivision 4, is less than the annual premium for a policy with a $500 174.32deductible available through the Minnesota Comprehensive Health Association. Children 174.33who are no longer eligible for MinnesotaCare under this clause shall be given a 12-month 174.34notice period from the date that ineligibility is determined before disenrollment. The 175.1premium for children remaining eligible under this clause shall be the maximum premium 175.2determined under section 256L.15, subdivision 2, paragraph (b). 175.3    (c)new text begin (f)new text end Notwithstanding paragraphs (a) and (b)new text begin (e)new text end , parents are not eligible for 175.4MinnesotaCare if gross household income exceeds $57,500 for the 12-month period 175.5of eligibility. 175.6new text begin EFFECTIVE DATE.new text end new text begin The amendment in paragraph (b) is effective January 1, 2012, new text end 175.7new text begin or upon federal approval whichever is later, and expires June 30, 2013. The commissioner new text end 175.8new text begin shall notify the revisor of statutes when federal approval is obtained and publish a notice new text end 175.9new text begin in the State Register.new text end 175.10    Sec. 100. Minnesota Statutes 2010, section 256L.09, subdivision 4, is amended to read: 175.11    Subd. 4. Eligibility as Minnesota resident. (a) For purposes of this section, a 175.12permanent Minnesota resident is a person who has demonstrated, through persuasive and 175.13objective evidence, that the person is domiciled in the state and intends to live in the 175.14state permanently. 175.15    (b) To be eligible as a permanent resident, an applicant must demonstrate the 175.16requisite intent to live in the state permanently by: 175.17    (1) showing that the applicant maintains a residence at a verified addressnew text begin other than a new text end 175.18new text begin place of public accommodation, unless the place of public accommodation is the person's new text end 175.19new text begin primary or only residencenew text end , through the use of evidence of residence described in section 175.20256D.02, subdivision 12a , paragraph (b), clause (2)new text begin (1)new text end ; 175.21    (2) demonstrating that the applicant has been continuously domiciled in the state for 175.22no less than 180 days immediately before the application; and 175.23    (3) signing an affidavit declaring that (A) the applicant currently resides in the state 175.24and intends to reside in the state permanently; and (B) the applicant did not come to the 175.25state for the primary purpose of obtaining medical coverage or treatment. 175.26    (c) A person who is temporarily absent from the state does not lose eligibility for 175.27MinnesotaCare. "Temporarily absent from the state" means the person is out of the state 175.28for a temporary purpose and intends to return when the purpose of the absence has been 175.29accomplished. A person is not temporarily absent from the state if another state has 175.30determined that the person is a resident for any purpose. If temporarily absent from the 175.31state, the person must follow the requirements of the health plan in which the person is 175.32enrolled to receive services. 175.33    Sec. 101. Minnesota Statutes 2010, section 256L.11, subdivision 7, is amended to read: 176.1    Subd. 7. Critical access dental providers. Effective for dental services provided to 176.2MinnesotaCare enrollees on or after January 1, 2007,new text begin July 1, 2011,new text end the commissioner shall 176.3increase payment rates to dentists and dental clinics deemed by the commissioner to be 176.4critical access providers under section 256B.76, subdivision 4, by 50new text begin 30new text end percent above 176.5the payment rate that would otherwise be paid to the provider. The commissioner shall 176.6pay the prepaid health plans under contract with the commissioner amounts sufficient to 176.7reflect this rate increase. The prepaid health plan must pass this rate increase to providers 176.8who have been identified by the commissioner as critical access dental providers under 176.9section 256B.76, subdivision 4. 176.10    Sec. 102. Minnesota Statutes 2010, section 256L.12, subdivision 9, is amended to read: 176.11    Subd. 9. Rate setting; performance withholds. (a) Rates will be prospective, 176.12per capita, where possible. The commissioner may allow health plans to arrange for 176.13inpatient hospital services on a risk or nonrisk basis. The commissioner shall consult with 176.14an independent actuary to determine appropriate rates. 176.15    (b) For services rendered on or after January 1, 2004, the commissioner shall 176.16withhold five percent of managed care plan payments and county-based purchasing 176.17plan payments under this section pending completion of performance targets. Each 176.18performance target must be quantifiable, objective, measurable, and reasonably attainable, 176.19except in the case of a performance target based on a federal or state law or rule. Criteria 176.20for assessment of each performance target must be outlined in writing prior to the 176.21contract effective date. The managed care plan must demonstrate, to the commissioner's 176.22satisfaction, that the data submitted regarding attainment of the performance target is 176.23accurate. The commissioner shall periodically change the administrative measures used 176.24as performance targets in order to improve plan performance across a broader range of 176.25administrative services. The performance targets must include measurement of plan 176.26efforts to contain spending on health care services and administrative activities. The 176.27commissioner may adopt plan-specific performance targets that take into account factors 176.28affecting only one plan, such as characteristics of the plan's enrollee population. The 176.29withheld funds must be returned no sooner than July 1 and no later than July 31 of the 176.30following calendar year if performance targets in the contract are achieved. 176.31(c) For services rendered on or after January 1, 2011, the commissioner shall 176.32withhold an additional three percent of managed care plan or county-based purchasing 176.33plan payments under this section. The withheld funds must be returned no sooner than 176.34July 1 and no later than July 31 of the following calendar year. The return of the withhold 176.35under this paragraph is not subject to the requirements of paragraph (b). 177.1(d) Effective for services rendered on or after January 1, 2011, the commissioner 177.2shall include as part of the performance targets described in paragraph (b) a reduction in 177.3the plan's emergency room utilization rate for state health care program enrollees by a 177.4measurable rate of five percent from the plan's utilization rate for the previous calendar 177.5year. 177.6The withheld funds must be returned no sooner than July 1 and no later than July 31 177.7of the following calendar year if the managed care plan demonstrates to the satisfaction of 177.8the commissioner that a reduction in the utilization rate was achieved. 177.9The withhold described in this paragraph shall continue for each consecutive 177.10contract period until the plan's emergency room utilization rate for state health care 177.11program enrollees is reduced by 25 percent of the plan's emergency room utilization rate 177.12for state health care program enrollees for calendar year 2009. Hospitals shall cooperate 177.13with the health plans in meeting this performance target and shall accept payment 177.14withholds that may be returned to the hospitals if the performance target is achieved. The 177.15commissioner shall structure the withhold so that the commissioner returns a portion of 177.16the withheld funds in amounts commensurate with achieved reductions in utilization less 177.17than the targeted amount. The withhold described in this paragraph does not apply to 177.18county-based purchasing plans. 177.19new text begin (e) Effective for services provided on or after January 1, 2012, the commissioner new text end 177.20new text begin shall include as part of the performance targets described in paragraph (b) a reduction in new text end 177.21new text begin the plan's hospitalization rate for a subsequent hospitalization within 30 days of a previous new text end 177.22new text begin hospitalization of a patient regardless of the reason for the hospitalization for state health new text end 177.23new text begin care program enrollees by a measurable rate of five percent from the plan's hospitalization new text end 177.24new text begin rate for the previous calendar year.new text end 177.25new text begin The withheld funds must be returned no sooner than July 1 and no later than July 31 new text end 177.26new text begin of the following calendar year if the managed care plan or county-based purchasing plan new text end 177.27new text begin demonstrates to the satisfaction of the commissioner that a reduction in the hospitalization new text end 177.28new text begin rate was achieved.new text end 177.29new text begin The withhold described in this paragraph must continue for each consecutive new text end 177.30new text begin contract period until the plan's subsequent hospitalization rate for state health care new text end 177.31new text begin program enrollees is reduced by 25 percent of the plan's subsequent hospitalization rate new text end 177.32new text begin for state health care program enrollees for calendar year 2010. Hospitals shall cooperate new text end 177.33new text begin with the plans in meeting this performance target and shall accept payment withholds that new text end 177.34new text begin must be returned to the hospitals if the performance target is achieved. The commissioner new text end 177.35new text begin shall structure the withhold so that the commissioner returns a portion of the withheld new text end 177.36new text begin funds in amounts commensurate with achieved reductions in utilizations less than the new text end 178.1new text begin targeted amount. The withhold described in this paragraph does not apply to county-based new text end 178.2new text begin purchasing plans.new text end 178.3(e)new text begin (f)new text end A managed care plan or a county-based purchasing plan under section 178.4256B.692 may include as admitted assets under section 62D.044 any amount withheld 178.5under this section that is reasonably expected to be returned. 178.6    Sec. 103. Minnesota Statutes 2010, section 256L.15, subdivision 1a, is amended to 178.7read: 178.8    Subd. 1a. Payment options. The commissioner may offer the following payment 178.9options to an enrollee: 178.10(1) payment by check; 178.11(2) payment by credit card; 178.12(3) payment by recurring automatic checking withdrawal; 178.13(4) payment by onetime electronic transfer of funds; 178.14(5) payment by wage withholding with the consent of the employer and the 178.15employee; or 178.16(6) payment by using state tax refund payments. 178.17new text begin The commissioner shall include information about the payment options on each new text end 178.18new text begin premium notice. new text end At application or reapplication, a MinnesotaCare applicant or enrollee 178.19may authorize the commissioner to use the Revenue Recapture Act in chapter 270A to 178.20collect funds from the applicant's or enrollee's refund for the purposes of meeting all or 178.21part of the applicant's or enrollee's MinnesotaCare premium obligation. The applicant or 178.22enrollee may authorize the commissioner to apply for the state working family tax credit 178.23on behalf of the applicant or enrollee. The setoff due under this subdivision shall not be 178.24subject to the $10 fee under section 270A.07, subdivision 1. 178.25    Sec. 104. Laws 2008, chapter 363, article 18, section 3, subdivision 5, is amended to 178.26read: 178.27 Subd. 5.Basic Health Care Grants
178.28 (a) MinnesotaCare Grants
178.29 Health Care Access -0- (770,000)
178.30Incentive Program and Outreach Grants. 178.31Of the appropriation for the Minnesota health 178.32care outreach program in Laws 2007, chapter 179.1147, article 19, section 3, subdivision 7, 179.2paragraph (b): 179.3(1) $400,000 in fiscal year 2009 from the 179.4general fund and $200,000 in fiscal year 2009 179.5from the health care access fund are for the 179.6incentive program under Minnesota Statutes, 179.7section 256.962, subdivision 5. For the 179.8biennium beginning July 1, 2009, base level 179.9funding for this activity shall be $360,000 179.10from the general fund and $160,000 from the 179.11health care access fund; and 179.12(2) $100,000 in fiscal year 2009 from the 179.13general fund and $50,000 in fiscal year 2009 179.14from the health care access fund are for the 179.15outreach grants under Minnesota Statutes, 179.16section 256.962, subdivision 2. For the 179.17biennium beginning July 1, 2009, base level 179.18funding for this activity shall be $90,000 179.19from the general fund and $40,000 from the 179.20health care access fund. 179.21 179.22 (b) MA Basic Health Care Grants - Families and Children -0- (17,280,000)
179.23Third-Party Liability. (a) During 179.24fiscal year 2009, the commissioner shall 179.25employ a contractor paid on a percentage 179.26basis to improve third-party collections. 179.27Improvement initiatives may include, but not 179.28be limited to, efforts to improve postpayment 179.29collection from nonresponsive claims and 179.30efforts to uncover third-party payers the 179.31commissioner has been unable to identify. 179.32(b) In fiscal year 2009, the first $1,098,000 179.33of recoveries, after contract payments and 179.34federal repayments, is appropriated to 180.1the commissioner for technology-related 180.2expenses. 180.3Administrative Costs. (a) For contracts 180.4effective on or after January 1, 2009, 180.5the commissioner shall limit aggregate 180.6administrative costs paid to managed care 180.7plans under Minnesota Statutes, section 180.8256B.69 , and to county-based purchasing 180.9plans under Minnesota Statutes, section 180.10256B.692 , to an overall average of 6.6new text begin 6.1new text end 180.11percent of total contract payments under 180.12Minnesota Statutes, sections 256B.69 and 180.13256B.692 , for each calendar year. For 180.14purposes of this paragraph, administrative 180.15costs do not include premium taxes paid 180.16under Minnesota Statutes, section 297I.05, 180.17subdivision 5 , and provider surcharges paid 180.18under Minnesota Statutes, section 256.9657, 180.19subdivision 3 . 180.20(b) Notwithstanding any law to the contrary, 180.21the commissioner may reduce or eliminate 180.22administrative requirements to meet the 180.23administrative target under paragraph (a). 180.24(c) Notwithstanding any contrary provision 180.25of this article, this rider shall not expire. 180.26Hospital Payment Delay. Notwithstanding 180.27Laws 2005, First Special Session chapter 4, 180.28article 9, section 2, subdivision 6, payments 180.29from the Medicaid Management Information 180.30System that would otherwise have been made 180.31for inpatient hospital services for medical 180.32assistance enrollees are delayed as follows: 180.33(1) for fiscal year 2008, June payments must 180.34be included in the first payments in fiscal 180.35year 2009; and (2) for fiscal year 2009, 181.1June payments must be included in the first 181.2payment of fiscal year 2010. The provisions 181.3of Minnesota Statutes, section 16A.124, 181.4do not apply to these delayed payments. 181.5Notwithstanding any contrary provision in 181.6this article, this paragraph expires on June 181.730, 2010. 181.8 181.9 (c) MA Basic Health Care Grants - Elderly and Disabled (14,028,000) (9,368,000)
181.10Minnesota Disability Health Options Rate 181.11Setting Methodology. The commissioner 181.12shall develop and implement a methodology 181.13for risk adjusting payments for community 181.14alternatives for disabled individuals (CADI) 181.15and traumatic brain injury (TBI) home 181.16and community-based waiver services 181.17delivered under the Minnesota disability 181.18health options program (MnDHO) effective 181.19January 1, 2009. The commissioner shall 181.20take into account the weighting system used 181.21to determine county waiver allocations in 181.22developing the new payment methodology. 181.23Growth in the number of enrollees receiving 181.24CADI or TBI waiver payments through 181.25MnDHO is limited to an increase of 200 181.26enrollees in each calendar year from January 181.272009 through December 2011. If those limits 181.28are reached, additional members may be 181.29enrolled in MnDHO for basic care services 181.30only as defined under Minnesota Statutes, 181.31section 256B.69, subdivision 28, and the 181.32commissioner may establish a waiting list for 181.33future access of MnDHO members to those 181.34waiver services. 181.35MA Basic Elderly and Disabled 181.36Adjustments. For the fiscal year ending June 182.130, 2009, the commissioner may adjust the 182.2rates for each service affected by rate changes 182.3under this section in such a manner across 182.4the fiscal year to achieve the necessary cost 182.5savings and minimize disruption to service 182.6providers, notwithstanding the requirements 182.7of Laws 2007, chapter 147, article 7, section 182.871. 182.9 (d) General Assistance Medical Care Grants -0- (6,971,000)
182.10 (e) Other Health Care Grants -0- (17,000)
182.11MinnesotaCare Outreach Grants Special 182.12Revenue Account. The balance in the 182.13MinnesotaCare outreach grants special 182.14revenue account on July 1, 2009, estimated 182.15to be $900,000, must be transferred to the 182.16general fund. 182.17Grants Reduction. Effective July 1, 2008, 182.18base level funding for nonforecast, general 182.19fund health care grants issued under this 182.20paragraph shall be reduced by 1.8 percent at 182.21the allotment level. 182.22    Sec. 105. Laws 2010, First Special Session chapter 1, article 25, section 3, subdivision 182.236, is amended to read: 182.24 Subd. 6.Health Care Grants
182.25 (a) MinnesotaCare Grants 998,000 (13,376,000)
182.26This appropriation is from the health care 182.27access fund. 182.28Health Care Access Fund Transfer to 182.29General Fund. The commissioner of 182.30management and budget shall transfer the 182.31following amounts in the following years 182.32from the health care access fund to the 182.33general fund: $998,000new text begin $0new text end in fiscal year 183.12010; $176,704,000new text begin $59,901,000new text end in fiscal 183.2year 2011; $141,041,000 in fiscal year 2012; 183.3and $286,150,000 in fiscal year 2013. If at 183.4any time the governor issues an executive 183.5order not to participate in early medical 183.6assistance expansion, no funds shall be 183.7transferred from the health care access 183.8fund to the general fund until early medical 183.9assistance expansion takes effect. This 183.10paragraph is effective the day following final 183.11enactment. 183.12MinnesotaCare Ratable Reduction. 183.13Effective for services rendered on or after 183.14July 1, 2010, to December 31, 2013, 183.15MinnesotaCare payments to managed care 183.16plans under Minnesota Statutes, section 183.17256L.12 , for single adults and households 183.18without children whose income is greater 183.19than 75 percent of federal poverty guidelines 183.20shall be reduced by 15 percent. Effective 183.21for services provided from July 1, 2010, to 183.22June 30, 2011, this reduction shall apply to 183.23all services. Effective for services provided 183.24from July 1, 2011, to December 31, 2013, this 183.25reduction shall apply to all services except 183.26inpatient hospital services. Notwithstanding 183.27any contrary provision of this article, this 183.28paragraph shall expire on December 31, 183.292013. 183.30 183.31 (b) Medical Assistance Basic Health Care Grants - Families and Children -0- 295,512,000
183.32Critical Access Dental. Of the general 183.33fund appropriation, $731,000 in fiscal year 183.342011 is to the commissioner for critical 183.35access dental provider reimbursement 183.36payments under Minnesota Statutes, section 184.1256B.76 subdivision 4. This is a onetime 184.2appropriation. 184.3Nonadministrative Rate Reduction. For 184.4services rendered on or after July 1, 2010, 184.5to December 31, 2013, the commissioner 184.6shall reduce contract rates paid to managed 184.7care plans under Minnesota Statutes, 184.8sections 256B.69 and 256L.12, and to 184.9county-based purchasing plans under 184.10Minnesota Statutes, section 256B.692, by 184.11three percent of the contract rate attributable 184.12to nonadministrative services in effect on 184.13June 30, 2010. Notwithstanding any contrary 184.14provision in this article, this rider expires on 184.15December 31, 2013. 184.16 184.17 (c) Medical Assistance Basic Health Care Grants - Elderly and Disabled -0- (30,265,000)
184.18 184.19 (d) General Assistance Medical Care Grants -0- (75,389,000) new text begin (59,583,000)new text end
184.20new text begin The reduction to general assistance medical new text end 184.21new text begin care grants is contingent upon the effective new text end 184.22new text begin date in Laws 2010, First Special Session new text end 184.23new text begin chapter 1, article 16, section 48. The new text end 184.24new text begin reduction shall be reestimated based upon new text end 184.25new text begin the actual effective date of the law. The new text end 184.26new text begin commissioner of management and budget new text end 184.27new text begin shall make adjustments in fiscal year new text end 184.28new text begin 2011 to general assistance medical care new text end 184.29new text begin appropriations to conform to the total new text end 184.30new text begin expected expenditure reductions specified in new text end 184.31new text begin this section.new text end 184.32 (e) Other Health Care Grants -0- (7,000,000)
184.33Cobra Carryforward. Unexpended funds 184.34appropriated in fiscal year 2010 for COBRA 184.35grants under Laws 2009, chapter 79, article 185.15, section 78, do not cancel and are available 185.2to the commissioner for fiscal year 2011 185.3COBRA grant expenditures. Up to $111,000 185.4of the fiscal year 2011 appropriation for 185.5COBRA grants provided in Laws 2009, 185.6chapter 79, article 13, section 3, subdivision 185.76, may be used by the commissioner for costs 185.8related to administration of the COBRA 185.9grants. 185.10    Sec. 106. new text begin COMMISSIONER'S ACTIONS; REPEAL OF EARLY MEDICAL new text end 185.11new text begin ASSISTANCE EXPANSION.new text end 185.12    new text begin Effective January 1, 2012, the commissioner of human services shall suspend new text end 185.13new text begin implementation and administration of Minnesota Statutes 2010, sections 256B.055, new text end 185.14new text begin subdivision 15; 256B.056, subdivision 3, paragraph (b); and 256B.056, subdivision 4, new text end 185.15new text begin paragraph (d). The commissioner shall refer persons enrolled under these provisions, and new text end 185.16new text begin applicants for coverage under these provisions, to the general assistance medical care new text end 185.17new text begin program established under Minnesota Statutes, section 256D.031.new text end 185.18    Sec. 107. new text begin GENERAL ASSISTANCE MEDICAL CARE PROGRAM; new text end 185.19new text begin PROVISIONS REVIVED.new text end 185.20    new text begin Notwithstanding their contingent repeal in Laws 2010, First Special Session chapter new text end 185.21new text begin 1, article 16, section 47, the following statutes are revived and have the force of law new text end 185.22new text begin effective January 1, 2012:new text end 185.23    new text begin (1) Minnesota Statutes 2010, section 256D.03, subdivisions 3, 3a, 6, 7, and 8;new text end 185.24    new text begin (2) Minnesota Statutes 2010, section 256D.031, subdivisions 1, 2, 3, 4, 6, 7, and new text end 185.25new text begin 10; andnew text end 185.26    new text begin (3) Laws 2010, chapter 200, article 1, section 18.new text end 185.27    Sec. 108. new text begin PLAN TO COORDINATE CARE FOR CHILDREN WITH new text end 185.28new text begin HIGH-COST MENTAL HEALTH CONDITIONS.new text end 185.29new text begin The commissioner of human services shall develop and submit to the legislature new text end 185.30new text begin by December 15, 2011, a plan to provide care coordination to medical assistance and new text end 185.31new text begin MinnesotaCare enrollees who are children with high-cost mental health conditions. For new text end 185.32new text begin purposes of this section, a child has a "high-cost mental health condition" if mental health new text end 185.33new text begin and medical expenses over the past year totalled $100,000 or more. For purposes of this new text end 186.1new text begin section, "care coordination" means collaboration between an advanced practice nurse and new text end 186.2new text begin primary care physicians and specialists to manage care; development of mental health new text end 186.3new text begin management plans for recurrent mental health issues; oversight and coordination of all new text end 186.4new text begin aspects of care in partnership with families; organization of medical, treatment, and new text end 186.5new text begin therapy information into a summary of critical information; coordination and appropriate new text end 186.6new text begin sequencing of evaluations and multiple appointments; information and assistance with new text end 186.7new text begin accessing resources; and telephone triage for behavior or other problems.new text end 186.8    Sec. 109. new text begin DATA ON CLAIMS AND UTILIZATION.new text end 186.9new text begin The commissioner of human services, in consultation with the Health and Human new text end 186.10new text begin Services Reform Committee, shall develop and provide to the legislature by December 15, new text end 186.11new text begin 2011, a methodology and any draft legislation necessary to allow for the release, upon new text end 186.12new text begin request, of summary data as defined in Minnesota Statutes, section 13.02, subdivision 19, new text end 186.13new text begin on claims and utilization for medical assistance, general assistance medical care, and new text end 186.14new text begin MinnesotaCare enrollees at no charge to the University of Minnesota Medical School, the new text end 186.15new text begin Mayo Medical School, Northwestern Health Sciences University, the Institute for Clinical new text end 186.16new text begin Systems Improvement, and other research institutions to conduct analyses of health care new text end 186.17new text begin outcomes and treatment effectiveness, provided the research institutions do not release new text end 186.18new text begin private or nonpublic data or data for which dissemination is prohibited by law.new text end 186.19    Sec. 110. new text begin REDUCTION OF STATE-MANDATED ADMINISTRATIVE new text end 186.20new text begin REPORTS.new text end 186.21new text begin (a) The commissioner of management and budget shall convene a report reduction new text end 186.22new text begin working group of persons designated by the commissioners of health, human services, and new text end 186.23new text begin commerce to eliminate redundant, unnecessary, obsolete, and low-priority state-mandated new text end 186.24new text begin administrative reports required of health plans and county-based purchasing plans new text end 186.25new text begin that serve persons enrolled in Minnesota health care programs. The commissioner of new text end 186.26new text begin management and budget and the report reduction working group shall develop a plan to new text end 186.27new text begin oversee the report reduction activities of the individual state agencies and coordinate the new text end 186.28new text begin activities of multiple state agencies to consolidate reports or eliminate redundant reports new text end 186.29new text begin required by more than one state agency on the same or a similar topic.new text end 186.30new text begin (b) The commissioners of health, human services, and commerce shall reduce, new text end 186.31new text begin eliminate, or consolidate state-mandated reports according to the plan developed by the new text end 186.32new text begin commissioner of management and budget through the report reduction working group. new text end 186.33new text begin In addition to other report reduction actions the commissioners or the working group new text end 186.34new text begin may undertake, the commissioners shall:new text end 187.1new text begin (1) collect encounter data, including provider payment data if collected, in a new text end 187.2new text begin consolidated report provided to a single state agency, with the data collected by that state new text end 187.3new text begin agency to be shared with other state agencies who need the data;new text end 187.4new text begin (2) collect only one provider network report annually through a single state agency, new text end 187.5new text begin with the data collected by that state agency to be shared with other state agencies who new text end 187.6new text begin need the data;new text end 187.7new text begin (3) collect only one standard financial report through a single state agency, with new text end 187.8new text begin the data collected by that state agency to be shared with other state agencies who need new text end 187.9new text begin the data. Data collected must be of a nature and in a format to allow comparison of the new text end 187.10new text begin cost-effectiveness of fee-for-service payment systems and prepaid programs administered new text end 187.11new text begin by health plans and county-based purchasing plans;new text end 187.12new text begin (4) consolidate and simplify reports and documentation requirements relating to new text end 187.13new text begin member communications and marketing materials, and establish a single review process new text end 187.14new text begin for all programs, products, and agencies in order to ensure uniform and consistent new text end 187.15new text begin regulation of health plan contracts;new text end 187.16new text begin (5) consolidate state regulation and oversight of health plans and county-based new text end 187.17new text begin purchasing plans so that activities of multiple agencies are administered through an new text end 187.18new text begin efficient and uniform multiagency process of oversight and audits, with consistent new text end 187.19new text begin standards, measures, and definitions for state oversight of quality, utilization management, new text end 187.20new text begin care management, delegation accountability, access to care, appeals and grievances, and new text end 187.21new text begin financial management;new text end 187.22new text begin (6) establish uniform requirements and procedures for denial, termination, or new text end 187.23new text begin reduction of services and member appeals and grievances, and align state requirements new text end 187.24new text begin and procedures with federal requirements and procedures; andnew text end 187.25new text begin (7) reform the state's performance improvement projects, requirements, and new text end 187.26new text begin procedures to be more flexible and efficient, and to place greater focus on measuring new text end 187.27new text begin improvement of outcomes and less on mandating detailed or prescriptive requirements for new text end 187.28new text begin specific performance improvement projects or activities.new text end 187.29new text begin (d) New reporting requirements or ad hoc report requests shall be established by a new text end 187.30new text begin state agency only:new text end 187.31new text begin (1) if required by a federal agency;new text end 187.32new text begin (2) if needed for a state regulatory audit or corrective action plan; ornew text end 187.33new text begin (3) after the completion of a review and analysis, and the development of new text end 187.34new text begin recommendations by the commissioner of management and budget, in consultation new text end 187.35new text begin with the report reduction working group, regarding the necessity, importance, and new text end 187.36new text begin administrative cost of the new report, and after completing a review to determine new text end 188.1new text begin whether the information sought can be obtained through another available state or federal new text end 188.2new text begin report. The results of the review, analysis, and recommendations of the commissioner of new text end 188.3new text begin management and budget must be provided to health plans and county-based purchasing new text end 188.4new text begin plans for review and comment at least 60 days before a new report or requirement is new text end 188.5new text begin established.new text end 188.6new text begin (e) To the extent possible, all state agencies shall use the procedures, reports, new text end 188.7new text begin and audits of the Centers for Medicare and Medicaid Services instead of requiring an new text end 188.8new text begin additional state-mandated report on the same or a similar topic.new text end 188.9new text begin (f) By January 15, 2012, the commissioner of management and budget shall provide new text end 188.10new text begin a report on the activities and results of the report reduction project to the legislature. new text end 188.11new text begin The report must include:new text end 188.12new text begin (1) a timetable for report reduction actions already taken or planned by the new text end 188.13new text begin commissioners or the report reduction working group;new text end 188.14new text begin (2) the specific reports that have been or will be eliminated or consolidated;new text end 188.15new text begin (3) the amount of money that will be saved through reductions in administrative new text end 188.16new text begin costs of health plans and county-based purchasing plans as a result of the report reduction new text end 188.17new text begin project; andnew text end 188.18new text begin (4) proposed legislation for changes to laws or rules that are needed to allow state new text end 188.19new text begin agencies to further reduce, consolidate, or eliminate reports when the changes cannot new text end 188.20new text begin be made administratively.new text end 188.21    Sec. 111. new text begin COMPETITIVE BIDDING PILOT.new text end 188.22new text begin For managed care contracts effective January 1, 2012, the commissioner of new text end 188.23new text begin human services is required to establish a competitive price bidding pilot for nonelderly, new text end 188.24new text begin nondisabled adults and children in medical assistance and MinnesotaCare in the new text end 188.25new text begin seven-county metropolitan area. The pilot must allow a minimum of two managed care new text end 188.26new text begin organizations to serve the metropolitan area. The pilot shall expire after two full calendar new text end 188.27new text begin years on December 31, 2013. The commissioner of human service shall conduct an new text end 188.28new text begin evaluation of the pilot to determine the cost-effectiveness and impacts to provider access at new text end 188.29new text begin the end of the two-year period. The commissioner must consult with other states that have new text end 188.30new text begin experience implementing competitive bidding in their medical assistance population and new text end 188.31new text begin incorporate best practices from those states in designing this pilot. The commissioner, prior new text end 188.32new text begin to implementation, must also consult with stakeholders on the design and implementation new text end 188.33new text begin of the pilot, including providers, plans, advocacy groups, and other interested parties.new text end 188.34    Sec. 112. new text begin REQUEST FOR PROPOSAL; PROVIDER BILLING PATTERNS.new text end 189.1new text begin (a) The commissioner of human services shall issue a request for proposal, using new text end 189.2new text begin existing resources, to identify abnormal provider billing patterns in order to prevent and new text end 189.3new text begin identify improper medical assistance payments.new text end 189.4new text begin (b) The request for proposal must include the following requirements for the new text end 189.5new text begin contractor:new text end 189.6new text begin (1) identification and reporting of improper claims, outlier claims, and improper new text end 189.7new text begin payments, both prior to and subsequent to reimbursement; new text end 189.8new text begin (2) utilization of fraud detection methods that maximize contemporary predictive new text end 189.9new text begin analytic tools, including but not limited to identity analytics, link analysis, and matching new text end 189.10new text begin capabilities; new text end 189.11new text begin (3) utilization of data analytics that improve fraud detection through the identification new text end 189.12new text begin of outlier reimbursement; new text end 189.13new text begin (4) reduction in state expenditures by reducing or eliminating payouts of improper new text end 189.14new text begin medical assistance claims; and new text end 189.15new text begin (5) demonstrated success with other states and state agencies using the specified new text end 189.16new text begin proposed solution, deployment, and implementation. new text end 189.17new text begin (c) The commissioner shall enter into a contract for the services in this section by new text end 189.18new text begin October 1, 2011. The contract must incorporate a performance-based vendor financing new text end 189.19new text begin mechanism under which the vendor shares in the risk of the project's success.new text end 189.20    Sec. 113. new text begin HEALTH SERVICES POLICY COMMITTEE STUDIES.new text end 189.21new text begin (a) The commissioner of human services, through the health services policy new text end 189.22new text begin committee established under Minnesota Statutes, section 256B.0625, subdivision 3c, shall new text end 189.23new text begin identify and review medical assistance services provided by health care professionals who new text end 189.24new text begin are not trained to provide the services in a high-quality manner. The commissioner shall new text end 189.25new text begin develop a process to limit payment for medical assistance services to providers who are new text end 189.26new text begin not appropriately trained to provide the service, and shall present recommendations and new text end 189.27new text begin draft legislation by January 15, 2012, to the legislature.new text end 189.28new text begin (b) The commissioner of human services, through the health services policy new text end 189.29new text begin committee established under Minnesota Statutes, section 256B.0625, subdivision 3c, shall new text end 189.30new text begin study the effectiveness of new strategies for wound care treatment for medical assistance new text end 189.31new text begin and MinnesotaCare enrollees with diabetes, including but not limited to the use of new new text end 189.32new text begin wound care technologies, assessment tools, and reporting programs. The commissioner new text end 189.33new text begin shall present recommendations by December 15, 2011, to the legislature on whether these new text end 189.34new text begin new strategies for wound care treatment should be covered under medical assistance new text end 189.35new text begin and MinnesotaCare.new text end 190.1    Sec. 114. new text begin SPECIALIZED MAINTENANCE THERAPY.new text end 190.2new text begin The commissioner of human services shall evaluate whether providing medical new text end 190.3new text begin assistance coverage for specialized maintenance therapy for enrollees with serious and new text end 190.4new text begin persistent mental illness who are at risk of hospitalization will improve the quality of new text end 190.5new text begin care and lower medical assistance spending by reducing rates of hospitalization. The new text end 190.6new text begin commissioner shall present findings and recommendations to the chairs and ranking new text end 190.7new text begin minority members of the legislative committees with jurisdiction over health and human new text end 190.8new text begin services finance and policy by December 15, 2011.new text end 190.9    Sec. 115. new text begin COVERAGE FOR LOWER-INCOME MINNESOTACARE new text end 190.10new text begin ENROLLEES.new text end 190.11new text begin The commissioner of human services shall develop and present to the legislature, new text end 190.12new text begin by December 15, 2011, a plan to redesign service delivery for MinnesotaCare enrollees new text end 190.13new text begin eligible under Minnesota Statutes, section 256L.04, subdivisions 1 and 7, with incomes new text end 190.14new text begin less than 133 percent of the federal poverty guidelines. The plan must be designed to new text end 190.15new text begin improve continuity and quality of care, reduce unnecessary emergency room visits, and new text end 190.16new text begin reduce average per-enrollee costs. In developing the plan, the commissioner shall consider new text end 190.17new text begin innovative methods of service delivery, including but not limited to increasing the use new text end 190.18new text begin and choice of private sector health plan coverage and encouraging the use of community new text end 190.19new text begin health clinics, as defined in the federal Community Health Care Act of 1964, as health new text end 190.20new text begin care homes.new text end 190.21    Sec. 116. new text begin DIRECTION TO COMMISSIONER; FEDERAL WAIVERS.new text end 190.22new text begin (a) The commissioner of human services shall apply to the Centers for Medicare new text end 190.23new text begin and Medicaid Services (CMS) for federal waivers to cover:new text end 190.24new text begin (1) families with children eligible under Minnesota Statutes, section 256L.04, new text end 190.25new text begin subdivision 1; andnew text end 190.26new text begin (2) adults eligible under Minnesota Statutes, section 256L.04, subdivision 1, new text end 190.27new text begin under the MinnesotaCare healthy Minnesota contribution program established under new text end 190.28new text begin Minnesota Statutes, section 256L.031, by July 1, 2011. The commissioner shall report to new text end 190.29new text begin the legislative committees with jurisdiction over health and human services policy and new text end 190.30new text begin finance whether or not the federal waiver application was accepted within ten working new text end 190.31new text begin days of receipt of the decision.new text end 190.32new text begin (b) The commissioner of human services shall apply to the CMS for a section new text end 190.33new text begin 1115(a) demonstration waiver, and any other necessary federal waivers and amendments, new text end 190.34new text begin including, but not limited to, a waiver of the appropriate sections of title XIX, United new text end 191.1new text begin States Code, title 42, section 1396a, and a waiver of any applicable federal maintenance of new text end 191.2new text begin effort provisions that would provide Minnesota with medical assistance program flexibility new text end 191.3new text begin in exchange for federal budget certainty. The commissioner shall seek federal approval to new text end 191.4new text begin enter into an agreement with CMS under which Minnesota would:new text end 191.5new text begin (1) accept an aggregate annual allotment for the medical assistance program, trended new text end 191.6new text begin forward at an agreed upon rate, with protections to cover medical inflation and projected new text end 191.7new text begin caseload growth; andnew text end 191.8new text begin (2) receive federal waivers of Medicaid requirements related to: statewideness and new text end 191.9new text begin comparability of services; the amount, duration, and scope of services; freedom of choice; new text end 191.10new text begin cost-sharing; and other areas of program administration specified by the commissioner.new text end 191.11new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end 191.12    Sec. 117. new text begin TRANSPARENCY AND QUALITY REPORTING FOR PUBLIC new text end 191.13new text begin HEALTH CARE PROGRAMS.new text end 191.14new text begin When negotiating with external vendors to provide managed care services, the new text end 191.15new text begin commissioner of human services shall require use of an advanced request for information new text end 191.16new text begin tool. This tool must provide the department with an evidence-based assessment that new text end 191.17new text begin focuses on the cost control, quality, and information transparency of the health care new text end 191.18new text begin vendor. The assessment may include evidence-based performance measures that have new text end 191.19new text begin been shown to influence better health, better health care, and more cost-effective use of new text end 191.20new text begin resources including, but not limited to, areas that determine each plan's capabilities and new text end 191.21new text begin performance with respect to:new text end 191.22new text begin (1) consumer engagement, support, and incentives;new text end 191.23new text begin (2) processes and outcomes for closing gaps in care according to clinical guideline new text end 191.24new text begin expectations;new text end 191.25new text begin (3) provider management, including outcome and population-based reimbursement, new text end 191.26new text begin transparent measurement of provider performance, and support of physician practice new text end 191.27new text begin structures that lead to better care; andnew text end 191.28new text begin (4) measures of clinical outcomes and waste approved by the National Quality new text end 191.29new text begin Forum.new text end 191.30    Sec. 118. new text begin RISK CORRIDORS.new text end 191.31new text begin (a) Effective for services rendered on or after January 1, 2012, the commissioner new text end 191.32new text begin shall establish risk corridors for state public programs that are actuarially sound for each new text end 191.33new text begin managed care plan and each county-based purchasing plan. The risk corridors will be new text end 191.34new text begin calculated annually based on the calendar year's net underwriting gain or loss. If the new text end 192.1new text begin managed care plan or county-based purchasing plan has achieved a net underwriting gain new text end 192.2new text begin of greater than three percent of revenue, 80 percent of any excess must be repaid to the new text end 192.3new text begin commissioner by July 31 of the year following calculation of the risk corridor year, and new text end 192.4new text begin 20 percent must be invested by the plan directly into programs for improving quality of new text end 192.5new text begin care or access to care for state public health care program enrollees. If the managed new text end 192.6new text begin care plan or county-based purchasing plan has incurred a net underwriting loss greater new text end 192.7new text begin than three percent of total revenue, 50 percent of any excess must be repaid to the plan new text end 192.8new text begin by the commissioner by July 31 of the year following calculation of the risk corridor new text end 192.9new text begin year. Determination of total revenues and net underwriting gain or loss must be based new text end 192.10new text begin on the Minnesota Supplement Report #1 which is filed on April 1 of the year following new text end 192.11new text begin calculation of the risk corridor and adjusted for the actual withhold calculation under new text end 192.12new text begin sections 256B.69, subdivision 5a, and 256L.12, subdivision 9. The report must be filed new text end 192.13new text begin with and publicly disclosed by the Department of Health.new text end 192.14new text begin (b) For purposes of this section, "state public programs" means those prepaid new text end 192.15new text begin medical assistance and MinnesotaCare programs for which a managed care plan or new text end 192.16new text begin county-based purchasing plan contracts with the commissioner to provide coverage under new text end 192.17new text begin sections 256B.69, 256B.692, and 256L.12. The risk corridors shall not apply to plans for new text end 192.18new text begin persons who are enrolled in integrated Medicare and medical assistance programs under new text end 192.19new text begin section 256B.69, subdivisions 23 and 28.new text end 192.20new text begin (c) This section expires January 1, 2014.new text end 192.21    Sec. 119. new text begin STUDY OF ENROLLED PROVIDER NETWORKS.new text end 192.22new text begin (a) The commissioner of human services shall present recommendations to the new text end 192.23new text begin legislature by December 15, 2011, for a reformed health care delivery system under new text end 192.24new text begin which enrolled provider networks provide basic health care services to qualified medical new text end 192.25new text begin assistance and MinnesotaCare enrollees, supplemented by a major medical or stop-loss new text end 192.26new text begin policy. For purposes of this section, "enrolled provider network" means a health care new text end 192.27new text begin provider or group of health care providers that contracts with the commissioner to meet new text end 192.28new text begin standards related to quality, affordability, and patient satisfaction for the provision of new text end 192.29new text begin basic care services.new text end 192.30new text begin (b) The recommendations must address:new text end 192.31new text begin (1) eligibility, quality, reporting, fiscal solvency, and other criteria for enrolled new text end 192.32new text begin provider networks;new text end 192.33new text begin (2) the geographic area of the state in which the reformed delivery system is to be new text end 192.34new text begin implemented, including a schedule for any phase-in of the new delivery system;new text end 193.1new text begin (3) methods to coordinate care delivery through enrolled provider networks with new text end 193.2new text begin care delivery through managed care and county-based purchasing plans, and the extent new text end 193.3new text begin to which care delivery through enrolled provider networks should replace care delivery new text end 193.4new text begin through managed care and county-based purchasing plans;new text end 193.5new text begin (4) the extent to which managed care and county-based purchasing plans should new text end 193.6new text begin provide claims processing, administrative, quality assurance, and other services for new text end 193.7new text begin enrolled provider networks and the commissioner;new text end 193.8new text begin (5) the definition of basic care services, criteria for stop-loss coverage or new text end 193.9new text begin major-medical coverage, and the extent to which risk-sharing should be applied to new text end 193.10new text begin enrolled provider networks;new text end 193.11new text begin (6) the extent to which certain health care services should continue to be delivered new text end 193.12new text begin through fee-for-service;new text end 193.13new text begin (7) eligibility criteria for medical assistance and MinnesotaCare enrollees to be new text end 193.14new text begin served by enrolled provider networks, and whether enrollee participation should be new text end 193.15new text begin mandatory or voluntary;new text end 193.16new text begin (8) enrollee cost-sharing and premiums;new text end 193.17new text begin (9) methods to coordinate the delivery of care through enrolled provider networks new text end 193.18new text begin with state and federal initiatives related to health care homes and care coordination, quality new text end 193.19new text begin improvement, and payment reform; andnew text end 193.20new text begin (10) the extent to which federal waivers and approval will be necessary for new text end 193.21new text begin implementation.new text end 193.22new text begin (c) The report must include an estimate of the costs and savings to the state of new text end 193.23new text begin delivering care through enrolled provider networks, and an implementation plan and new text end 193.24new text begin timeline for establishing the reformed health care delivery system.new text end 193.25    Sec. 120. new text begin REPEALER.new text end 193.26new text begin (a) new text end new text begin Minnesota Statutes 2010, section 256.01, subdivision 2b, new text end new text begin (new text end new text begin performance new text end 193.27new text begin paymentsnew text end new text begin ) is repealed effective July 1, 2011.new text end 193.28new text begin (b) new text end new text begin Minnesota Statutes 2010, section 62J.07, subdivisions 1, 2, and 3, new text end new text begin (new text end new text begin Legislative new text end 193.29new text begin Commission on Health Care Accessnew text end new text begin ) are repealed.new text end 193.30new text begin (c) new text end new text begin Laws 2009, chapter 79, article 5, section 64,new text end new text begin (new text end new text begin 256L.07, subdivision 2new text end new text begin ) is repealed new text end 193.31new text begin retroactively from July 1, 2009, and federal approval is no longer necessary.new text end 193.32new text begin (d) new text end new text begin Laws 2009, chapter 79, article 5, section 65, new text end new text begin (new text end new text begin 256L.07, subdivision 3new text end new text begin ) is repealed new text end 193.33new text begin retroactively from July 1, 2009, and federal approval is no longer necessary.new text end 194.1new text begin (e) new text end new text begin Laws 2009, chapter 79, article 5, section 68, new text end new text begin (new text end new text begin 256L.15, subdivision 2, exemption new text end 194.2new text begin of low-income children from MinnesotaCare premiums and insurance barriersnew text end new text begin ) is new text end 194.3new text begin repealed retroactively from July 1, 2009, and federal approval is no longer necessary.new text end 194.4new text begin (f) new text end new text begin Minnesota Statutes 2010, section 256L.07, subdivision 7,new text end new text begin exempting eligibility new text end 194.5new text begin for children formally under medical assistancenew text end new text begin , is repealed retroactively from October new text end 194.6new text begin 1, 2008, and federal approval is no longer necessary.new text end 194.7new text begin (g) The amendment in new text end new text begin Laws 2009, chapter 79, article 5, section 55, as amended by new text end 194.8new text begin Laws 2009, chapter 173, article 1, section 36,new text end new text begin (new text end new text begin 256L.04, subdivision 1, children deemed new text end 194.9new text begin eligible are exempt from eligibility requirementsnew text end new text begin ) is repealed retroactively from January new text end 194.10new text begin 1, 2009, and federal approval is no longer necessary.new text end 194.11new text begin (h) new text end new text begin Laws 2009, chapter 79, article 5, section 56, new text end new text begin (new text end new text begin 256L.04, subdivision 1b, new text end 194.12new text begin exemption from income limit for childrennew text end new text begin ) is repealed retroactively from July 1, 2009, new text end 194.13new text begin and federal approval is no longer necessary.new text end 194.14new text begin (i) new text end new text begin Laws 2009, chapter 79, article 5, section 60,new text end new text begin (new text end new text begin 256L.05, subdivision 1c, open new text end 194.15new text begin enrollment and streamlined applicationnew text end new text begin ) is repealed retroactively from July 1, 2009, new text end 194.16new text begin and federal approval is no longer necessary.new text end 194.17new text begin (j) new text end new text begin Laws 2009, chapter 79, article 5, section 66,new text end new text begin (new text end new text begin 256L.07, subdivision 8, automatic new text end 194.18new text begin eligibility certain childrennew text end new text begin ) is repealed retroactively from July 1, 2009, and federal new text end 194.19new text begin approval is no longer necessary.new text end 194.20new text begin (k) The amendment in new text end new text begin Laws 2009, chapter 79, article 5, section 57, new text end new text begin (new text end new text begin 256L.04, new text end 194.21new text begin subdivision 7a, ineligibility for adults with certain incomenew text end new text begin ) is repealed retroactively new text end 194.22new text begin from July 1, 2009, and federal approval is no longer necessary.new text end 194.23new text begin (l) The amendment in new text end new text begin Laws 2009, chapter 79, article 5, section 61, new text end new text begin (new text end new text begin 256L.05, new text end 194.24new text begin subdivision 3, children eligibility following termination from foster carenew text end new text begin ) is repealed new text end 194.25new text begin retroactively from July 1, 2009, and federal approval is no longer necessary.new text end 194.26new text begin (m) The amendment in new text end new text begin Laws 2009, chapter 79, article 5, section 62, new text end new text begin (new text end new text begin 256L.05, new text end 194.27new text begin subdivision 3a, exemption from cancellation for nonrenewal for childrennew text end new text begin ) is repealed new text end 194.28new text begin retroactively from July 1, 2009, and federal approval is no longer necessary.new text end 194.29new text begin (n) The amendment in new text end new text begin Laws 2009, chapter 79, article 5, section 63, new text end new text begin (new text end new text begin 256L.07, new text end 194.30new text begin subdivision 1, children whose gross family income is greater than 275 percent FPG new text end 194.31new text begin may remain enrollednew text end new text begin ) is repealed retroactively from July 1, 2009, and federal approval is new text end 194.32new text begin no longer necessary.new text end 194.33new text begin (o) The amendment in new text end new text begin Laws 2009, chapter 79, article 5, section 64, new text end new text begin (new text end new text begin 256L.07, new text end 194.34new text begin subdivision 2, exempts children from requirement not to have employer-subsidized new text end 194.35new text begin coveragenew text end new text begin ) is repealed retroactively from July 1, 2009, and federal approval is no longer new text end 194.36new text begin necessary.new text end 195.1new text begin (p) The amendment in new text end new text begin Laws 2009, chapter 79, article 5, section 65, new text end new text begin (new text end new text begin 256L.07, new text end 195.2new text begin subdivision 3, requires children with family gross income over 200 percent of FPG new text end 195.3new text begin to have had no health coverage for four months prior to applicationnew text end new text begin ) is repealed new text end 195.4new text begin retroactively from July 1, 2009, and federal approval is no longer necessary.new text end 195.5new text begin (q) The amendment in new text end new text begin Laws 2009, chapter 79, article 5, section 68, new text end new text begin (new text end new text begin 256L.15, new text end 195.6new text begin subdivision 2, children in families with income less than 200 percent FPG pay no new text end 195.7new text begin premiumnew text end new text begin ) is repealed retroactively from July 1, 2009, and federal approval is no longer new text end 195.8new text begin necessary.new text end 195.9new text begin (r) The amendment in new text end new text begin Laws 2009, chapter 79, article 5, section 69, new text end new text begin (new text end new text begin 256L.15, new text end 195.10new text begin subdivision 3, exempts children with family income below 200 percent FPG from new text end 195.11new text begin sliding fee scalenew text end new text begin ) is repealed retroactively from July 1, 2009, and federal approval is new text end 195.12new text begin no longer necessary.new text end 195.13new text begin (s) new text end new text begin Laws 2009, chapter 79, article 5, section 79, new text end new text begin (new text end new text begin uncoded federal approvalnew text end new text begin ) is new text end 195.14new text begin repealed the day following final enactment.new text end 195.15new text begin (t)new text end new text begin Minnesota Statutes 2010, section 256B.057, subdivision 2c,new text end new text begin (new text end new text begin extended medical new text end 195.16new text begin assistance for certain childrennew text end new text begin ) is repealed.new text end 195.17new text begin (u) The amendments in new text end new text begin Laws 2008, chapter 358, article 3, sections 8; and 9, new text end 195.18new text begin (new text end new text begin renewal rolling month and premium grace monthnew text end new text begin ) are repealed.new text end 195.19    Sec. 121. new text begin REPEALER; EARLY MEDICAL ASSISTANCE EXPANSION.new text end 195.20new text begin Minnesota Statutes 2010, section 256B.055, subdivision 15,new text end new text begin is repealed January new text end 195.21new text begin 1, 2012.new text end 195.22ARTICLE 6 195.23CONTINUING CARE 195.24    Section 1. Minnesota Statutes 2010, section 252.27, subdivision 2a, is amended to read: 195.25    Subd. 2a. Contribution amount. (a) The natural or adoptive parents of a minor 195.26child, including a child determined eligible for medical assistance without consideration of 195.27parental income, must contribute to the cost of services used by making monthly payments 195.28on a sliding scale based on income, unless the child is married or has been married, 195.29parental rights have been terminated, or the child's adoption is subsidized according to 195.30section 259.67 or through title IV-E of the Social Security Act. The parental contribution 195.31is a partial or full payment for medical services provided for diagnostic, therapeutic, 195.32curing, treating, mitigating, rehabilitation, maintenance, and personal care services as 195.33defined in United States Code, title 26, section 213, needed by the child with a chronic 195.34illness or disability. 196.1    (b) For households with adjusted gross income equal to or greater than 100 percent 196.2of federal poverty guidelines, the parental contribution shall be computed by applying the 196.3following schedule of rates to the adjusted gross income of the natural or adoptive parents: 196.4    (1) if the adjusted gross income is equal to or greater than 100 percent of federal 196.5poverty guidelines and less than 175 percent of federal poverty guidelines, the parental 196.6contribution is $4 per month; 196.7    (2) if the adjusted gross income is equal to or greater than 175 percent of federal 196.8poverty guidelines and less than or equal to 545new text begin 525new text end percent of federal poverty guidelines, 196.9the parental contribution shall be determined using a sliding fee scale established by the 196.10commissioner of human services which begins at one percent of adjusted gross income at 196.11175 percent of federal poverty guidelines and increases to 7.5new text begin eightnew text end percent of adjusted 196.12gross income for those with adjusted gross income up to 545new text begin 525new text end percent of federal 196.13poverty guidelines; 196.14    (3) if the adjusted gross income is greater than 545new text begin 525new text end percent of federal 196.15poverty guidelines and less than 675 percent of federal poverty guidelines, the parental 196.16contribution shall be 7.5new text begin 9.5new text end percent of adjusted gross income; 196.17    (4) if the adjusted gross income is equal to or greater than 675 percent of federal 196.18poverty guidelines and less than 975new text begin 900new text end percent of federal poverty guidelines, the parental 196.19contribution shall be determined using a sliding fee scale established by the commissioner 196.20of human services which begins at 7.5new text begin 9.5new text end percent of adjusted gross income at 675 percent 196.21of federal poverty guidelines and increases to tennew text begin 12new text end percent of adjusted gross income for 196.22those with adjusted gross income up to 975new text begin 900new text end percent of federal poverty guidelines; and 196.23    (5) if the adjusted gross income is equal to or greater than 975new text begin 900new text end percent of 196.24federal poverty guidelines, the parental contribution shall be 12.5new text begin 13.5new text end percent of adjusted 196.25gross income. 196.26    If the child lives with the parent, the annual adjusted gross income is reduced by 196.27$2,400 prior to calculating the parental contribution. If the child resides in an institution 196.28specified in section 256B.35, the parent is responsible for the personal needs allowance 196.29specified under that section in addition to the parental contribution determined under this 196.30section. The parental contribution is reduced by any amount required to be paid directly to 196.31the child pursuant to a court order, but only if actually paid. 196.32    (c) The household size to be used in determining the amount of contribution under 196.33paragraph (b) includes natural and adoptive parents and their dependents, including the 196.34child receiving services. Adjustments in the contribution amount due to annual changes 196.35in the federal poverty guidelines shall be implemented on the first day of July following 196.36publication of the changes. 197.1    (d) For purposes of paragraph (b), "income" means the adjusted gross income of the 197.2natural or adoptive parents determined according to the previous year's federal tax form, 197.3except, effective retroactive to July 1, 2003, taxable capital gains to the extent the funds 197.4have been used to purchase a home shall not be counted as income. 197.5    (e) The contribution shall be explained in writing to the parents at the time eligibility 197.6for services is being determined. The contribution shall be made on a monthly basis 197.7effective with the first month in which the child receives services. Annually upon 197.8redetermination or at termination of eligibility, if the contribution exceeded the cost of 197.9services provided, the local agency or the state shall reimburse that excess amount to 197.10the parents, either by direct reimbursement if the parent is no longer required to pay a 197.11contribution, or by a reduction in or waiver of parental fees until the excess amount is 197.12exhausted. All reimbursements must include a notice that the amount reimbursed may be 197.13taxable income if the parent paid for the parent's fees through an employer's health care 197.14flexible spending account under the Internal Revenue Code, section 125, and that the 197.15parent is responsible for paying the taxes owed on the amount reimbursed. 197.16    (f) The monthly contribution amount must be reviewed at least every 12 months; 197.17when there is a change in household size; and when there is a loss of or gain in income 197.18from one month to another in excess of ten percent. The local agency shall mail a written 197.19notice 30 days in advance of the effective date of a change in the contribution amount. 197.20A decrease in the contribution amount is effective in the month that the parent verifies a 197.21reduction in income or change in household size. 197.22    (g) Parents of a minor child who do not live with each other shall each pay the 197.23contribution required under paragraph (a). An amount equal to the annual court-ordered 197.24child support payment actually paid on behalf of the child receiving services shall be 197.25deducted from the adjusted gross income of the parent making the payment prior to 197.26calculating the parental contribution under paragraph (b). 197.27    (h) The contribution under paragraph (b) shall be increased by an additional five 197.28percent if the local agency determines that insurance coverage is available but not 197.29obtained for the child. For purposes of this section, "available" means the insurance is a 197.30benefit of employment for a family member at an annual cost of no more than five percent 197.31of the family's annual income. For purposes of this section, "insurance" means health 197.32and accident insurance coverage, enrollment in a nonprofit health service plan, health 197.33maintenance organization, self-insured plan, or preferred provider organization. 197.34    Parents who have more than one child receiving services shall not be required 197.35to pay more than the amount for the child with the highest expenditures. There shall 197.36be no resource contribution from the parents. The parent shall not be required to pay 198.1a contribution in excess of the cost of the services provided to the child, not counting 198.2payments made to school districts for education-related services. Notice of an increase in 198.3fee payment must be given at least 30 days before the increased fee is due. 198.4    (i) The contribution under paragraph (b) shall be reduced by $300 per fiscal year if, 198.5in the 12 months prior to July 1: 198.6    (1) the parent applied for insurance for the child; 198.7    (2) the insurer denied insurance; 198.8    (3) the parents submitted a complaint or appeal, in writing to the insurer, submitted 198.9a complaint or appeal, in writing, to the commissioner of health or the commissioner of 198.10commerce, or litigated the complaint or appeal; and 198.11    (4) as a result of the dispute, the insurer reversed its decision and granted insurance. 198.12    For purposes of this section, "insurance" has the meaning given in paragraph (h). 198.13    A parent who has requested a reduction in the contribution amount under this 198.14paragraph shall submit proof in the form and manner prescribed by the commissioner or 198.15county agency, including, but not limited to, the insurer's denial of insurance, the written 198.16letter or complaint of the parents, court documents, and the written response of the insurer 198.17approving insurance. The determinations of the commissioner or county agency under this 198.18paragraph are not rules subject to chapter 14. 198.19(j) Notwithstanding paragraph (b), for the period from July 1, 2010, to June 30, 198.202013, the parental contribution shall be computed by applying the following contribution 198.21schedule to the adjusted gross income of the natural or adoptive parents: 198.22(1) if the adjusted gross income is equal to or greater than 100 percent of federal 198.23poverty guidelines and less than 175 percent of federal poverty guidelines, the parental 198.24contribution is $4 per month; 198.25(2) if the adjusted gross income is equal to or greater than 175 percent of federal 198.26poverty guidelines and less than or equal to 525 percent of federal poverty guidelines, 198.27the parental contribution shall be determined using a sliding fee scale established by the 198.28commissioner of human services which begins at one percent of adjusted gross income 198.29at 175 percent of federal poverty guidelines and increases to eight percent of adjusted 198.30gross income for those with adjusted gross income up to 525 percent of federal poverty 198.31guidelines; 198.32(3) if the adjusted gross income is greater than 525 percent of federal poverty 198.33guidelines and less than 675 percent of federal poverty guidelines, the parental contribution 198.34shall be 9.5 percent of adjusted gross income; 198.35(4) if the adjusted gross income is equal to or greater than 675 percent of federal 198.36poverty guidelines and less than 900 percent of federal poverty guidelines, the parental 199.1contribution shall be determined using a sliding fee scale established by the commissioner 199.2of human services which begins at 9.5 percent of adjusted gross income at 675 percent of 199.3federal poverty guidelines and increases to 12 percent of adjusted gross income for those 199.4with adjusted gross income up to 900 percent of federal poverty guidelines; and 199.5(5) if the adjusted gross income is equal to or greater than 900 percent of federal 199.6poverty guidelines, the parental contribution shall be 13.5 percent of adjusted gross 199.7income. If the child lives with the parent, the annual adjusted gross income is reduced by 199.8$2,400 prior to calculating the parental contribution. If the child resides in an institution 199.9specified in section , the parent is responsible for the personal needs allowance 199.10specified under that section in addition to the parental contribution determined under this 199.11section. The parental contribution is reduced by any amount required to be paid directly to 199.12the child pursuant to a court order, but only if actually paid. 199.13    Sec. 2. Minnesota Statutes 2010, section 256.01, subdivision 24, is amended to read: 199.14    Subd. 24. Disability Linkage Line. The commissioner shall establish the Disability 199.15Linkage Line, a new text begin to serve as Minnesota's neutral access point for new text end statewide consumernew text begin new text end 199.16new text begin disabilitynew text end information, referral, and assistance system for people with disabilities and 199.17chronic illnesses thatnew text begin . The Disability Linkage Line shallnew text end : 199.18new text begin (1) deliver information and assistance based on national and state standards;new text end 199.19    (1) providesnew text begin (2) providenew text end information about state and federal eligibility requirements, 199.20benefits, and service options; 199.21new text begin (3) provide benefits and options counseling;new text end 199.22    (2) makesnew text begin (4) makenew text end referrals to appropriate support entities; 199.23    (3) delivers information and assistance based on national and state standards; 199.24    (4) assistsnew text begin (5) educatenew text end people tonew text begin on their options so they cannew text end make well-informed 199.25decisionsnew text begin choicesnew text end ; and 199.26    (5) supportsnew text begin (6) help supportnew text end the timely resolution of service access and benefit 199.27issues.new text begin ;new text end 199.28new text begin (7) inform people of their long-term community services and supports;new text end 199.29new text begin (8) provide necessary resources and supports that can lead to employment and new text end 199.30new text begin increased economic stability of people with disabilities; andnew text end 199.31new text begin (9) serve as the technical assistance and help center for the Web-based tool, new text end 199.32new text begin Minnesota's Disability Benefits 101.org.new text end 199.33new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2011.new text end 199.34    Sec. 3. Minnesota Statutes 2010, section 256.01, subdivision 29, is amended to read: 200.1    Subd. 29. State medical review team. (a) To ensure the timely processing of 200.2determinations of disability by the commissioner's state medical review team under 200.3sections 256B.055, subdivision 7, paragraph (b), 256B.057, subdivision 9, paragraph 200.4(j), and 256B.055, subdivision 12, the commissioner shall review all medical evidence 200.5submitted by county agencies with a referral and seek additional information from 200.6providers, applicants, and enrollees to support the determination of disability where 200.7necessary. Disability shall be determined according to the rules of title XVI and title 200.8XIX of the Social Security Act and pertinent rules and policies of the Social Security 200.9Administration. 200.10    (b) Prior to a denial or withdrawal of a requested determination of disability due 200.11to insufficient evidence, the commissioner shall (1) ensure that the missing evidence is 200.12necessary and appropriate to a determination of disability, and (2) assist applicants and 200.13enrollees to obtain the evidence, including, but not limited to, medical examinations 200.14and electronic medical records. 200.15(c) The commissioner shall provide the chairs of the legislative committees with 200.16jurisdiction over health and human services finance and budget the following information 200.17on the activities of the state medical review team by February 1 of each year: 200.18(1) the number of applications to the state medical review team that were denied, 200.19approved, or withdrawn; 200.20(2) the average length of time from receipt of the application to a decision; 200.21(3) the number of appeals, appeal results, and the length of time taken from the date 200.22the person involved requested an appeal for a written decision to be made on each appeal; 200.23(4) for applicants, their age, health coverage at the time of application, hospitalization 200.24history within three months of application, and whether an application for Social Security 200.25or Supplemental Security Income benefits is pending; and 200.26(5) specific information on the medical certification, licensure, or other credentials 200.27of the person or persons performing the medical review determinations and length of 200.28time in that position. 200.29(d) Any appeal made under section 256.045, subdivision 3, of a disability 200.30determination made by the state medical review team must be decided according to the 200.31timelines under section 256.0451, subdivision 22, paragraph (a). If a written decision is 200.32not issued within the timelines under section 256.0451, subdivision 22, paragraph (a), the 200.33appeal must be immediately reviewed by the chief appeals referee. 200.34new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2011.new text end 200.35    Sec. 4. Minnesota Statutes 2010, section 256.045, subdivision 4a, is amended to read: 201.1    Subd. 4a. Case management appealsnew text begin temporary stay of demissionnew text end . Any recipient 201.2of case management services pursuant to section , who contests the county 201.3agency's action or failure to act in the provision of those services, other than a failure 201.4to act with reasonable promptness or a suspension, reduction, denial, or termination of 201.5services, must submit a written request for a conciliation conference to the county agency. 201.6The county agency shall inform the commissioner of the receipt of a request when it is 201.7submitted and shall schedule a conciliation conference. The county agency shall notify the 201.8recipient, the commissioner, and all interested persons of the time, date, and location of the 201.9conciliation conference. The commissioner may assist the county by providing mediation 201.10services or by identifying other resources that may assist in the mediation between the 201.11parties. Within 30 days, the county agency shall conduct the conciliation conference 201.12and inform the recipient in writing of the action the county agency is going to take and 201.13when that action will be taken and notify the recipient of the right to a hearing under this 201.14subdivision. The conciliation conference shall be conducted in a manner consistent with 201.15the commissioner's instructions. If the county fails to conduct the conciliation conference 201.16and issue its report within 30 days, or, at any time up to 90 days after the conciliation 201.17conference is held, a recipient may submit to the commissioner a written request for a 201.18hearing before a state human services referee to determine whether case management 201.19services have been provided in accordance with applicable laws and rules or whether the 201.20county agency has assured that the services identified in the recipient's individual service 201.21plan have been delivered in accordance with the laws and rules governing the provision 201.22of those services. The state human services referee shall recommend an order to the 201.23commissioner, who shall, in accordance with the procedure in subdivision 5, issue a final 201.24order within 60 days of the receipt of the request for a hearing, unless the commissioner 201.25refuses to accept the recommended order, in which event a final order shall issue within 90 201.26days of the receipt of that request. The order may direct the county agency to take those 201.27actions necessary to comply with applicable laws or rules. The commissioner may issue a 201.28temporary order prohibiting the demission of a recipient of case management services 201.29new text begin under section 256B.092 new text end from a residential or day habilitation program licensed under 201.30chapter 245A, while a county agency review process or an appeal brought by a recipient 201.31under this subdivision is pending, or for the period of time necessary for the county agency 201.32to implement the commissioner's order. The commissioner shall not issue a final order 201.33staying the demission of a recipient of case management services from a residential or day 201.34habilitation program licensed under chapter 245A. 201.35new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012.new text end 202.1    Sec. 5. Minnesota Statutes 2010, section 256B.056, subdivision 3, is amended to read: 202.2    Subd. 3. Asset limitations for individuals and families. (a) To be eligible for 202.3medical assistance, a person must not individually own more than $3,000 in assets, or if a 202.4member of a household with two family members, husband and wife, or parent and child, 202.5the household must not own more than $6,000 in assets, plus $200 for each additional 202.6legal dependent. In addition to these maximum amounts, an eligible individual or family 202.7may accrue interest on these amounts, but they must be reduced to the maximum at the 202.8time of an eligibility redetermination. The accumulation of the clothing and personal 202.9needs allowance according to section 256B.35 must also be reduced to the maximum at 202.10the time of the eligibility redetermination. The value of assets that are not considered in 202.11determining eligibility for medical assistance is the value of those assets excluded under 202.12the supplemental security income program for aged, blind, and disabled persons, with 202.13the following exceptions: 202.14(1) household goods and personal effects are not considered; 202.15(2) capital and operating assets of a trade or business that the local agency determines 202.16are necessary to the person's ability to earn an income are not considered; 202.17(3) motor vehicles are excluded to the same extent excluded by the supplemental 202.18security income program; 202.19(4) assets designated as burial expenses are excluded to the same extent excluded by 202.20the supplemental security income program. Burial expenses funded by annuity contracts 202.21or life insurance policies must irrevocably designate the individual's estate as contingent 202.22beneficiary to the extent proceeds are not used for payment of selected burial expenses; and 202.23(5) effective upon federal approval, for a person who no longer qualifies as an 202.24employed person with a disability due to loss of earnings, assets allowed while eligible 202.25for medical assistance under section 256B.057, subdivision 9, are not considered for 12 202.26months, beginning with the first month of ineligibility as an employed person with a 202.27disability, to the extent that the person's total assets remain within the allowed limits of 202.28section 256B.057, subdivision 9, paragraph (c)new text begin (d)new text end . 202.29(b) No asset limit shall apply to persons eligible under section 256B.055, subdivision 202.3015. 202.31new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2014.new text end 202.32    Sec. 6. Minnesota Statutes 2010, section 256B.056, is amended by adding a 202.33subdivision to read: 202.34    new text begin Subd. 5d.new text end new text begin Spenddown adjustments.new text end new text begin When income is projected for a six-month new text end 202.35new text begin budget period, retroactive adjustments to income determined to be available to a person new text end 203.1new text begin under section 256B.0575 must be made at the end of each six-month budget period new text end 203.2new text begin based on changes occurring during the budget period. For changes occurring outside the new text end 203.3new text begin six-month budget period, such retroactive adjustments are limited to the six full calendar new text end 203.4new text begin months before the month the change is reported or discovered.new text end 203.5    Sec. 7. Minnesota Statutes 2010, section 256B.057, subdivision 9, is amended to read: 203.6    Subd. 9. Employed persons with disabilities. (a) Medical assistance may be paid 203.7for a person who is employed and who: 203.8(1) but for excess earnings or assets, meets the definition of disabled under the 203.9Supplemental Security Income program; 203.10(2) is at least 16 but less than 65 years of age; 203.11(3) meets the asset limits in paragraph (c)new text begin (d)new text end ; and 203.12(4) pays a premium and other obligations under paragraph (e). 203.13    new text begin (b) For purposes of eligibility, there is a $65 earned income disregard. To be eligible new text end 203.14new text begin for medical assistance under this subdivision, a person must have more than $65 of earned new text end 203.15new text begin income. Earned income must have Medicare, Social Security, and applicable state and new text end 203.16new text begin federal taxes withheld. The person must document earned income tax withholding. new text end Any 203.17spousal income or assets shall be disregarded for purposes of eligibility and premium 203.18determinations. 203.19(b)new text begin (c)new text end After the month of enrollment, a person enrolled in medical assistance under 203.20this subdivision who: 203.21(1) is temporarily unable to work and without receipt of earned income due to a 203.22medical condition, as verified by a physician, may retain eligibility for up to four calendar 203.23months; or 203.24(2) effective January 1, 2004, loses employment for reasons not attributable to the 203.25enrollee, new text begin and is without receipt of earned income new text end may retain eligibility for up to four 203.26consecutive months after the month of job loss. To receive a four-month extension, 203.27enrollees must verify the medical condition or provide notification of job loss. All other 203.28eligibility requirements must be met and the enrollee must pay all calculated premium 203.29costs for continued eligibility. 203.30(c)new text begin (d)new text end For purposes of determining eligibility under this subdivision, a person's 203.31assets must not exceed $20,000, excluding: 203.32(1) all assets excluded under section 256B.056; 203.33(2) retirement accounts, including individual accounts, 401(k) plans, 403(b) plans, 203.34Keogh plans, and pension plans; and 203.35(3) medical expense accounts set up through the person's employer.new text begin ; andnew text end 204.1new text begin (4) spousal assets, including spouse's share of jointly held assets.new text end 204.2(d)(1) Effective January 1, 2004, for purposes of eligibility, there will be a $65 204.3earned income disregard. To be eligible, a person applying for medical assistance under 204.4this subdivision must have earned income above the disregard level. 204.5(2) Effective January 1, 2004, to be considered earned income, Medicare, Social 204.6Security, and applicable state and federal income taxes must be withheld. To be eligible, 204.7a person must document earned income tax withholding. 204.8(e)(1) A person whose earned and unearned income is equal to or greater than 100 204.9percent of federal poverty guidelines for the applicable family size must pay a premium 204.10to be eligible for medical assistance under this subdivision.new text begin (e) All enrollees must pay a new text end 204.11new text begin premium to be eligible for medical assistance under this subdivision, except as provided new text end 204.12new text begin under section 256.01, subdivision 18b.new text end 204.13new text begin (1) An enrollee must pay the greater of a $65 premium ornew text end the premium shall benew text begin new text end 204.14new text begin calculatednew text end based on the person's gross earned and unearned income and the applicable 204.15family size using a sliding fee scale established by the commissioner, which begins at 204.16one percent of income at 100 percent of the federal poverty guidelines and increases 204.17to 7.5 percent of income for those with incomes at or above 300 percent of the federal 204.18poverty guidelines. 204.19new text begin (2) new text end Annual adjustments in the premium schedule based upon changes in the federal 204.20poverty guidelines shall be effective for premiums due in July of each year. 204.21(2) Effective January 1, 2004, all enrollees must pay a premium to be eligible for 204.22medical assistance under this subdivision. An enrollee shall pay the greater of a $35 204.23premium or the premium calculated in clause (1). 204.24(3) Effective November 1, 2003, All enrollees who receive unearned income must 204.25pay one-half of onenew text begin fivenew text end percent of unearned income in addition to the premium amountnew text begin , new text end 204.26new text begin except as provided under section 256.01, subdivision 18bnew text end . 204.27(4) Effective November 1, 2003, for enrollees whose income does not exceed 200 204.28percent of the federal poverty guidelines and who are also enrolled in Medicare, the 204.29commissioner must reimburse the enrollee for Medicare Part B premiums under section 204.30256B.0625, subdivision 15, paragraph (a). 204.31(5)new text begin (4)new text end Increases in benefits under title II of the Social Security Act shall not be 204.32counted as income for purposes of this subdivision until July 1 of each year. 204.33(f) A person's eligibility and premium shall be determined by the local county 204.34agency. Premiums must be paid to the commissioner. All premiums are dedicated to 204.35the commissioner. 205.1(g) Any required premium shall be determined at application and redetermined at 205.2the enrollee's six-month income review or when a change in income or household size is 205.3reported. Enrollees must report any change in income or household size within ten days 205.4of when the change occurs. A decreased premium resulting from a reported change in 205.5income or household size shall be effective the first day of the next available billing month 205.6after the change is reported. Except for changes occurring from annual cost-of-living 205.7increases, a change resulting in an increased premium shall not affect the premium amount 205.8until the next six-month review. 205.9(h) Premium payment is due upon notification from the commissioner of the 205.10premium amount required. Premiums may be paid in installments at the discretion of 205.11the commissioner. 205.12(i) Nonpayment of the premium shall result in denial or termination of medical 205.13assistance unless the person demonstrates good cause for nonpayment. Good cause exists 205.14if the requirements specified in Minnesota Rules, part 9506.0040, subpart 7, items B to 205.15D, are met. Except when an installment agreement is accepted by the commissioner, 205.16all persons disenrolled for nonpayment of a premium must pay any past due premiums 205.17as well as current premiums due prior to being reenrolled. Nonpayment shall include 205.18payment with a returned, refused, or dishonored instrument. The commissioner may 205.19require a guaranteed form of payment as the only means to replace a returned, refused, 205.20or dishonored instrument. 205.21(j) The commissioner shall notify enrollees annually beginning at least 24 months 205.22before the person's 65th birthday of the medical assistance eligibility rules affecting 205.23income, assets, and treatment of a spouse's income and assets that will be applied upon 205.24reaching age 65. 205.25new text begin (k) For enrollees whose income does not exceed 200 percent of the federal poverty new text end 205.26new text begin guidelines and who are also enrolled in Medicare, the commissioner shall reimburse new text end 205.27new text begin the enrollee for Medicare part B premiums under section 256B.0625, subdivision 15, new text end 205.28new text begin paragraph (a).new text end 205.29new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2014, for adults age 21 or new text end 205.30new text begin older, and October 1, 2019, for children age 16 to before the child's 21st birthday.new text end 205.31    Sec. 8. Minnesota Statutes 2010, section 256B.0657, is amended to read: 205.32256B.0657 SELF-DIRECTED SUPPORTS OPTIONnew text begin OPTIONSnew text end . 205.33    Subdivision 1. Definition. new text begin (a) "Lead agency" has the meaning given in section new text end 205.34new text begin 256B.0911, subdivision 1a, paragraph (d).new text end 206.1new text begin (b) "Legal representative" means a legal guardian of a child or an adult, or parent of new text end 206.2new text begin a minor child.new text end 206.3new text begin (c) "Individual representative" means an individual who has been authorized, in new text end 206.4new text begin a written statement by the person or the person's legal representative, to speak on the new text end 206.5new text begin person's behalf and help the person understand and make informed choices in matters new text end 206.6new text begin related to identification of needs and choice of services and supports and assist the person new text end 206.7new text begin to implement an approved support plan and has no financial interest in the provision of any new text end 206.8new text begin services included in the individual's plan unless related by blood, adoption, or marriage.new text end 206.9new text begin (d) new text end "Self-directed supports optionnew text begin optionsnew text end " means personal assistance, supports, 206.10items, and related services purchased under an approved budget plan and budget by a 206.11recipient. 206.12    Subd. 2. Eligibility. (a) The self-directed supports option is available to a person 206.13who: 206.14    (1) is a recipient of medical assistance as determined under sections 256B.055, 206.15256B.056 , and 256B.057, subdivision 9; 206.16    (2) is eligible for personal care assistance services under section 256B.0659new text begin , or new text end 206.17new text begin for a home and community-based services waiver program under section 256B.0915, new text end 206.18new text begin 256B.092, or 256B.49, or alternative care under section 256B.0913new text end ; 206.19    (3) lives in the person's own apartment or home, which is not owned, operated, or 206.20controlled by a provider of services notnew text begin except for services provided by thosenew text end related by 206.21blood ornew text begin , adoption,new text end marriagenew text begin , or family foster care consistent with the requirements of new text end 206.22new text begin section 256B.0651, subdivision 1, paragraph (e)new text end ; 206.23    (4) has the ability to hire, fire, supervise, establish staff compensation for, and 206.24manage the individuals providing services, and to choose and obtain items, related 206.25services, and supports as described in the participant's plan. If the recipient is not able 206.26to carry out these functions but has a legal guardiannew text begin , individual representative, new text end or parent 206.27to carry them out, the guardiannew text begin , individual representative, new text end or parent may fulfill these 206.28functions on behalf of the recipient; and 206.29    (5) has not been excluded or disenrolled by the commissioner. 206.30    (b) The commissioner may disenroll ornew text begin ,new text end excludenew text begin , or require other measures such as new text end 206.31new text begin training, increased assistance, reporting, or oversight fornew text end recipients, including guardians 206.32andnew text begin , new text end parents, new text begin and individual representatives new text end under the following circumstances: 206.33    (1) recipients who have been restricted by the Primary Care Utilization Review 206.34Committeenew text begin Minnesota restricted recipient programnew text end may be excluded for a specified time 206.35period; 207.1    (2) recipients who exit the self-directed supports option during the recipient's 207.2service plan year shall not access the self-directed supports option for the remainder of 207.3that service plan year; and 207.4    (3) when the department determines that the recipient cannot manage recipient 207.5responsibilities under the program. 207.6new text begin (c) For vendors or other self-directed service providers, the commissioner may new text end 207.7new text begin take any action authorized under surveillance and integrity review in Minnesota Rules, new text end 207.8new text begin parts 9505.2160 to 9505.2245.new text end 207.9    Subd. 3. Eligibility for other services. Selection of the self-directed supports 207.10option by a recipient shall not restrict access to other medically necessary care and 207.11services furnished under the state plan medical assistance benefit, including home care 207.12targeted case management, except that a person receivingnew text begin choosing lead agency managednew text end 207.13home and community-based waiver services, new text begin agency-provided personal care assistance new text end 207.14new text begin services, new text end a family support grant, or a consumer support grant is not eligible for funding 207.15under the self-directed supports option. 207.16    Subd. 4. Assessment requirements. (a) The self-directed supports option 207.17assessment must meet the following requirements: 207.18    (1) it shall be conducted by the county public health nurse or a certified public health 207.19nurse under contract with the countynew text begin consistent with the requirements of personal care new text end 207.20new text begin assistance services under section 256B.0659, subdivision 3a; home and community-based new text end 207.21new text begin waiver services programs under section 256B.0915, 256B.092, or 256B.49; and the new text end 207.22new text begin alternative care program under section 256B.0913, until section 256B.0911, subdivision new text end 207.23new text begin 3a, has been implementednew text end ; 207.24    (2) it shall be conducted face-to-face in the recipient's home initially, and at least 207.25annually thereafter; when there is a significant change in the recipient's condition; and 207.26when there is a change in the new text begin person's new text end need for personal care assistance servicesnew text begin under the new text end 207.27new text begin programs listed in subdivision 2, paragraph (a), clause (2)new text end . A recipient who is residing in a 207.28facility may be assessed for the self-directed support option for the purpose of returning 207.29to the community using this option; and 207.30    (3) it shall be completed using the format established by the commissioner. 207.31    (b) The results of the new text begin personal care assistance new text end assessment and recommendations shall 207.32be communicated to the commissioner and the recipient by the county public health nurse 207.33or certified public health nurse under contract with the countynew text begin as required under section new text end 207.34new text begin 256B.0659, subdivision 3a. The person's annual and monthly average authorization for new text end 207.35new text begin the self-directed budget amount shall be provided within 40 days after the personal care new text end 207.36new text begin assessment or reassessment, or within ten days after a request not related to an assessmentnew text end . 208.1new text begin (c) The lead agency responsible for administration of home and community-based new text end 208.2new text begin waiver services under section 256B.0915, 256B.092, or 256B.49, and alternative care new text end 208.3new text begin under section 256B.0913, shall provide annual and monthly average authorization for the new text end 208.4new text begin self-directed services budget amounts for all eligible persons within 40 days after an new text end 208.5new text begin initial assessment or annual review and within ten days if requested at a time unrelated to new text end 208.6new text begin the assessment or annual review.new text end 208.7    Subd. 5. Self-directed supports option plan requirements. (a) The plannew text begin and new text end 208.8new text begin providernew text end for the self-directed supports option must meet the following requirements: 208.9    (1) the plan must be completed using a person-centered process that: 208.10    (i) builds upon the recipient's capacity to engage in activities that promote 208.11community life; 208.12    (ii) respects the recipient's preferences, choices, and abilities; 208.13    (iii) involves families, friends, and professionals in the planning or delivery of 208.14services or supports as desired or required by the recipient; and 208.15    (iv) addresses the need for personal care assistancenew text begin and othernew text end servicesnew text begin and supportsnew text end 208.16identified in the recipient's self-directed supports option assessment; 208.17    (2) the plan shall be developed by the recipientnew text begin , legal representative,new text end or by the 208.18guardian of an adult recipient or by a parent or guardian of a minor child, new text begin managing new text end 208.19new text begin partner, new text end and may be assisted by a provider who meets the requirements established for 208.20using a person-centered planning process and shall be reviewed at least annually upon 208.21reassessment or when there is a significant change in the recipient's condition; and 208.22    (3) the plan must include the total budget amount available divided into monthly 208.23amounts that cover the number of months of personal care assistance services new text begin or home new text end 208.24new text begin and community-based waiver or alternative care new text end authorization included in the budget. 208.25new text begin A recipient may reserve funds monthly for the purchase of items that meet the standards new text end 208.26new text begin in subdivision 6, paragraph (a), clause (2), and are reflected in the support plan. new text end The 208.27amount used each month may vary, but additional funds shall not be provided above the 208.28annual personal care assistance services authorized amount unless a change in condition 208.29is documented. 208.30    (b) The commissioner new text begin or the commissioner's designee new text end shall: 208.31    new text begin (1) ensure that outreach activities and information materials on self-directed options new text end 208.32new text begin are developed and provided across the state to persons who use or are seeking community new text end 208.33new text begin support services;new text end 208.34    (1)new text begin (2)new text end establish the format and criteria for the plan as well as the requirements for 208.35providers who assist with plan development; 209.1    (2)new text begin (3)new text end review the assessment and plan and, within 30 days after receiving the 209.2assessment and plan, make a decision on approval of the plan; 209.3    (3)new text begin (4)new text end notify the recipient, parent, or guardiannew text begin legal representative, or individual new text end 209.4new text begin representativenew text end of approval or denial of the plan and provide notice of the right to appeal 209.5under section 256.045; and 209.6    (4)new text begin (5)new text end provide a copy of the plan to the fiscal support entity selected by the recipientnew text begin new text end 209.7new text begin from among at least three certified entitiesnew text end . 209.8    new text begin (c) The commissioner shall:new text end 209.9    new text begin (1) establish provider enrollment requirements for provision of fiscal support entity new text end 209.10new text begin services and person-centered support plan services, including benefits counseling to new text end 209.11new text begin support employment; andnew text end 209.12    new text begin (2) collect a fee to cover the costs of certifying providers for the services described new text end 209.13new text begin in this subdivision.new text end 209.14    Subd. 6. Services covered. (a) Services covered under the self-directed supports 209.15option include: 209.16    (1) personal care assistance services under section 256B.0659new text begin , and services under new text end 209.17new text begin the home and community-based waivers, except those provided in licensed or registered new text end 209.18new text begin residential settings unless the services are provided in a family foster care setting which new text end 209.19new text begin meets the requirements of section 256B.0651, subdivision 1, paragraph (e)new text end ; and 209.20    (2) items, related services, and supports, including assistive technology, that increase 209.21independence or substitute for human assistance to the extent expenditures would 209.22otherwise be used for human assistance. 209.23    (b) Items, supports, and related services purchased under this option shall not be 209.24considered home care services for the purposes of section 144A.43. 209.25    Subd. 7. Noncovered services. Services or supports that are not eligible for 209.26payment under the self-directed supports option include: 209.27    (1) services, goods, or supports that do not benefit the recipient; 209.28    (2) any fees incurred by the recipient, such as Minnesota health care program fees 209.29and co-pays, legal fees, or costs related to advocate agencies; 209.30    (3) insurance, except for insurance costs related to employee coverage or fiscal 209.31support entity payments; 209.32    (4) room and board and personal items that are not related to the disability, except 209.33that medically prescribed specialized diet items may be covered if they reduce the need for 209.34human assistance; 209.35    (5) home modifications that add square footagenew text begin , except those modifications that new text end 209.36new text begin configure a bathroom to accommodate a wheelchairnew text end ; 210.1    (6) home modifications for a residence other than the primary residence of the 210.2recipient, or in the event of a minor with parents not living together, the primary residences 210.3of the parents; 210.4    (7) expenses for travel, lodging, or meals related to training the recipient, the 210.5parent or guardian of an adult recipient, or the parent or guardian of a minor childnew text begin legal new text end 210.6new text begin representativenew text end , or paid or unpaid caregivers that exceed $500 in a 12-month period; 210.7    (8) experimental treatment; 210.8    (9) any service or item new text begin to the extent the service or item is new text end covered by other medical 210.9assistance state plan services, including prescription and over-the-counter medications, 210.10compounds, and solutions and related fees, including premiums and co-payments; 210.11    (10) membership dues or costs, except when the service is necessary and appropriate 210.12to treat a physical condition or to improve or maintain the recipient's physical condition. 210.13The condition must be identified in the recipient's plan of care and monitored by a 210.14Minnesota health care program enrolled physician; 210.15    (11) vacation expenses other than the cost of direct services; 210.16    (12) vehicle maintenance or modifications not related to the disability; 210.17    (13) tickets and related costs to attend sporting or other recreational events; and 210.18    (14) costs related to Internet access, except when necessary for operation of assistive 210.19technology, to increase independence, or to substitute for human assistance. 210.20    Subd. 8. Self-directed budget requirements. new text begin (a) new text end The budget for the provision of 210.21the self-directed service option shall be established new text begin for persons eligible for personal care new text end 210.22new text begin assistance services under section 256B.0659 new text end based on: 210.23    (1) assessed personal care assistance units, not to exceed the maximum number of 210.24personal care assistance units available, as determined by section 256B.0659; and 210.25    (2) the personal care assistance unit rate: 210.26    (i) with a reduction to the unit rate to pay for a program administrator as defined in 210.27subdivision 10; and 210.28    (ii) an additional adjustment to the unit rate as needed to ensure cost neutrality for 210.29the state. 210.30new text begin (b) The budget for persons eligible for programs listed in subdivision 2, paragraph new text end 210.31new text begin (a), clause (2), is based on the approved budget methodologies for each program.new text end 210.32    Subd. 9. Quality assurance and risk management. (a) The commissioner 210.33shall establish quality assurance and risk management measures for use in developing 210.34and implementing self-directed plans and budgets that (1) recognize the roles and 210.35responsibilities involved in obtaining services in a self-directed manner, and (2) assure 210.36the appropriateness of such plans and budgets based upon a recipient's resources and 211.1capabilities. These measures must include (i) background studies, and (ii) backup and 211.2emergency plans, including disaster planningnew text begin , and (iii) for persons using home and new text end 211.3new text begin community-based waiver services, monitoring by the lead agency on quality assurance new text end 211.4new text begin measures and recipient health, safety, and welfarenew text end . 211.5    (b) The commissioner shall provide ongoing technical assistance and resource 211.6and educational materials for families and recipients selecting the self-directed optionnew text begin , new text end 211.7new text begin including information on the quality assurance effortsnew text end . 211.8    (c) Performance assessments measures, such as of a recipient's new text begin functioning, new text end 211.9satisfaction with the services and supports, and ongoing monitoring of health and 211.10well-being shall be identified in consultation with the stakeholder group. 211.11    Subd. 10. Fiscal support entity. (a) Each recipient new text begin or legal representative new text end shall 211.12choose a fiscal support entity provider certified by the commissioner to make payments 211.13for services, items, supports, and administrative costs related to managing a self-directed 211.14service plan authorized for payment in the approved plan and budget. Recipientsnew text begin The new text end 211.15new text begin recipient or legal representative new text end shall also choose the payroll, agency with choice, or the 211.16fiscal conduit model of financial and service management. 211.17    (b) The fiscal support entity: 211.18    (1) may not limit or restrict the recipient's choice of service or support providers, 211.19including use of the payroll, agency with choice, or fiscal conduit model of financial 211.20and service management; 211.21    (2) must have a written agreement with the recipientnew text begin , individual representative, new text end or 211.22the recipient's new text begin legal new text end representative that identifies the duties and responsibilities to be 211.23performed and the specific related charges; 211.24    (3) must provide the recipient and the home care targeted case managernew text begin , legal new text end 211.25new text begin representative, and individual representativenew text end with a monthly written summary of the 211.26self-directed supports option services that were billed, including charges from the fiscal 211.27support entity; 211.28    (4) must be knowledgeable of and comply with Internal Revenue Service 211.29requirements necessary to process employer and employee deductions, provide appropriate 211.30and timely submission of employer tax liabilities, and maintain documentation to support 211.31medical assistance claims; 211.32    (5) must have current and adequate liability insurance and bonding and sufficient 211.33cash flow and have on staff or under contract a certified public accountant or an individual 211.34with a baccalaureate degree in accounting; and 211.35    (6) must maintain records to track all self-directed supports option services 211.36expenditures, including time records of persons paid to provide supports and receipts for 212.1any goods purchased. The records must be maintained for a minimum of five years from 212.2the claim date and be available for audit or review upon request. Claims submitted by 212.3the fiscal support entity must correspond with services, amounts, and time periods as 212.4authorized in the recipient's self-directed supports option plan. 212.5    (c) The commissioner shall have authority to: 212.6    (1) set or negotiate rates with fiscal support entities; 212.7    (2) limit the number of fiscal support entities; 212.8    (3) identify a process to certify and recertify fiscal support entities and assure fiscal 212.9support entities are available to recipients throughout the state; and 212.10    (4) establish a uniform format and protocol to be used by eligible fiscal support 212.11entities. 212.12    Subd. 11. Stakeholder consultation. The commissioner shall consult with 212.13a statewide consumer-directednew text begin self-directed new text end services stakeholder group, including 212.14representatives of all types of consumer-directednew text begin self-directed new text end service users, advocacy 212.15organizations, counties, and consumer-directednew text begin self-directed new text end service providers. The 212.16commissioner shall seek recommendations from this stakeholder group in developingnew text begin , new text end 212.17new text begin monitoring, evaluating, and modifyingnew text end : 212.18    (1) the self-directed plan format; 212.19    (2) requirements and guidelines for the person-centered plan assessment and 212.20planning process; 212.21    (3) implementation of the option and the quality assurance and risk management 212.22techniques; and 212.23    (4) standards and requirements, including rates for the personal support plan 212.24development provider and the fiscal support entity; policies; training; and implementationnew text begin ; new text end 212.25new text begin andnew text end 212.26new text begin (5) the self-directed supports options available through the home and new text end 212.27new text begin community-based waivers under section 256B.0916 and the personal care assistance new text end 212.28new text begin program under section 256B.0659, including recommendations on possible ways to new text end 212.29new text begin increase participation, improve flexibility, and provide incentives for recipients to new text end 212.30new text begin participate in a life transition and crisis funding pool with others to save and contribute new text end 212.31new text begin part of their authorized budgets, which can be carried over year to year and used according new text end 212.32new text begin to priority standards under section 256B.092, subdivision 12, paragraph (a), clauses (1), new text end 212.33new text begin (3), (4), (5), and (6)new text end . 212.34The stakeholder group shall provide recommendations on the repeal of the personal 212.35care assistance choice option, transition issues, and whether the consumer support grant 212.36program under section 256.476 should be modified. The stakeholder group shall meet 213.1at least three times each year to provide advice on policy, implementation, and other 213.2aspects of consumer and self-directed services. 213.3    Subd. 12. Enrollment and evaluation. Enrollment in the self-directed supports 213.4option is available to current personal care assistance recipients upon annual personal 213.5care assistance reassessment, with a maximum enrollment of 1,000new text begin 2,000new text end people in the 213.6first fiscal year of implementation and an additional 1,000new text begin 3,000new text end people in the second 213.7fiscal year. The commissioner shall evaluate the self-directed supports option during the 213.8first two years of implementation and make any necessary changes prior to the option 213.9becoming available statewide. 213.10new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2012.new text end 213.11    Sec. 9. Minnesota Statutes 2010, section 256B.0659, subdivision 11, is amended to 213.12read: 213.13    Subd. 11. Personal care assistant; requirements. (a) A personal care assistant 213.14must meet the following requirements: 213.15    (1) be at least 18 years of age with the exception of persons who are 16 or 17 years 213.16of age with these additional requirements: 213.17    (i) supervision by a qualified professional every 60 days; and 213.18    (ii) employment by only one personal care assistance provider agency responsible 213.19for compliance with current labor laws; 213.20    (2) be employed by a personal care assistance provider agency; 213.21    (3) enroll with the department as a personal care assistant after clearing a background 213.22study. Except as provided in subdivision 11a, before a personal care assistant provides 213.23services, the personal care assistance provider agency must initiate a background study on 213.24the personal care assistant under chapter 245C, and the personal care assistance provider 213.25agency must have received a notice from the commissioner that the personal care assistant 213.26is: 213.27    (i) not disqualified under section 245C.14; or 213.28    (ii) is disqualified, but the personal care assistant has received a set aside of the 213.29disqualification under section 245C.22; 213.30    (4) be able to effectively communicate with the recipient and personal care 213.31assistance provider agency; 213.32    (5) be able to provide covered personal care assistance services according to the 213.33recipient's personal care assistance care plan, respond appropriately to recipient needs, 213.34and report changes in the recipient's condition to the supervising qualified professional 213.35or physician; 214.1    (6) not be a consumer of personal care assistance services; 214.2    (7) maintain daily written records including, but not limited to, time sheets under 214.3subdivision 12; 214.4    (8) effective January 1, 2010, complete standardized training as determined 214.5by the commissioner before completing enrollment. The training must be available 214.6in languages other than English and to those who need accommodations due to 214.7disabilities. Personal care assistant training must include successful completion of the 214.8following training components: basic first aid, vulnerable adult, child maltreatment, 214.9OSHA universal precautions, basic roles and responsibilities of personal care assistants 214.10including information about assistance with lifting and transfers for recipients, emergency 214.11preparedness, orientation to positive behavioral practices, fraud issues, and completion of 214.12time sheets. Upon completion of the training components, the personal care assistant must 214.13demonstrate the competency to provide assistance to recipients; 214.14    (9) complete training and orientation on the needs of the recipient within the first 214.15seven days after the services begin; and 214.16    (10) be limited to providing and being paid for up to 275 hours per month, except 214.17that this limit shall be 275 hours per month for the period July 1, 2009, through June 30, 214.182011, of personal care assistance services regardless of the number of recipients being 214.19served or the number of personal care assistance provider agencies enrolled with. The 214.20number of hours worked per day shall not be disallowed by the department unless in 214.21violation of the law. 214.22    (b) A legal guardian may be a personal care assistant if the guardian is not being paid 214.23for the guardian services and meets the criteria for personal care assistants in paragraph (a). 214.24    (c) Effective January 1, 2010, persons who do not qualify as a personal care assistant 214.25include parents and stepparents of minors, spouses, paid legal guardians, family foster 214.26care providers, except as otherwise allowed in section 256B.0625, subdivision 19a, or 214.27staff of a residential setting.new text begin When the personal care assistant is a relative of the recipient, new text end 214.28new text begin the commissioner shall pay 80 percent of the provider rate. For purposes of this section, new text end 214.29new text begin relative means the parent or adoptive parent of an adult child, a sibling aged 16 years or new text end 214.30new text begin older, an adult child, a grandparent, or a grandchild. new text end 214.31    Sec. 10. Minnesota Statutes 2010, section 256B.0659, subdivision 28, is amended to 214.32read: 214.33    Subd. 28. Personal care assistance provider agency; required documentation. 214.34new text begin (a) new text end Required documentation must be completed and kept in the personal care assistance 215.1provider agency file or the recipient's home residence. The required documentation 215.2consists of: 215.3(1) employee files, including: 215.4(i) applications for employment; 215.5(ii) background study requests and results; 215.6(iii) orientation records about the agency policies; 215.7(iv) trainings completed with demonstration of competence; 215.8(v) supervisory visits; 215.9(vi) evaluations of employment; and 215.10(vii) signature on fraud statement; 215.11(2) recipient files, including: 215.12(i) demographics; 215.13(ii) emergency contact information and emergency backup plan; 215.14(iii) personal care assistance service plan; 215.15(iv) personal care assistance care plan; 215.16(v) month-to-month service use plan; 215.17(vi) all communication records; 215.18(vii) start of service information, including the written agreement with recipient; and 215.19(viii) date the home care bill of rights was given to the recipient; 215.20(3) agency policy manual, including: 215.21(i) policies for employment and termination; 215.22(ii) grievance policies with resolution of consumer grievances; 215.23(iii) staff and consumer safety; 215.24(iv) staff misconduct; and 215.25(v) staff hiring, service delivery, staff and consumer safety, staff misconduct, and 215.26resolution of consumer grievances; 215.27(4) time sheets for each personal care assistant along with completed activity sheets 215.28for each recipient served; and 215.29(5) agency marketing and advertising materials and documentation of marketing 215.30activities and costsnew text begin ; andnew text end 215.31new text begin (6) for each personal care assistant, whether or not the personal care assistant is new text end 215.32new text begin providing care to a relative as defined in subdivision 11new text end . 215.33new text begin (b) The commissioner may assess a fine of up to $500 on provider agencies that do new text end 215.34new text begin not consistently comply with the requirements of this subdivision.new text end 216.1    Sec. 11. Minnesota Statutes 2010, section 256B.0911, subdivision 1a, is amended to 216.2read: 216.3    Subd. 1a. Definitions. For purposes of this section, the following definitions apply: 216.4    (a) "Long-term care consultation services" means: 216.5    (1) assistance in identifying services needed to maintain an individual in the most 216.6inclusive environment; 216.7    (2) providing recommendations on cost-effective community services that are 216.8available to the individual; 216.9    (3) development of an individual's person-centered community support plan; 216.10    (4) providing information regarding eligibility for Minnesota health care programs; 216.11    (5) face-to-face long-term care consultation assessments, which may be completed 216.12in a hospital, nursing facility, intermediate care facility for persons with developmental 216.13disabilities (ICF/DDs), regional treatment centers, or the person's current or planned 216.14residence; 216.15    (6) federally mandated screening to determine the need for an institutional level of 216.16care under subdivision 4a; 216.17    (7) determination of home and community-based waiver service eligibility 216.18including level of care determination for individuals who need an institutional level of 216.19care as defined under section 144.0724, subdivision 11, or 256B.092, service eligibility 216.20including state plan home care services identified in sections 256B.0625, subdivisions 216.216 , 7, and 19, paragraphs (a) and (c), and 256B.0657, based on assessment and support 216.22plan development with appropriate referrals, including the option for consumer-directed 216.23community new text begin self-directed new text end supports; 216.24    (8) providing recommendations for nursing facility placement when there are no 216.25cost-effective community services available; and 216.26    (9) assistance to transition people back to community settings after facility 216.27admissionnew text begin ; andnew text end 216.28new text begin (10) providing notice to the individual or legal representative of the annual and new text end 216.29new text begin monthly average authorized amount for traditional agency services and self-directed new text end 216.30new text begin services under section 256B.0657 for which the recipient is found eligiblenew text end . 216.31    (b) "Long-term care options counseling" means the services provided by the linkage 216.32lines as mandated by sections 256.01 and 256.975, subdivision 7, and also includes 216.33telephone assistance and follow up once a long-term care consultation assessment has 216.34been completed. 216.35    (c) "Minnesota health care programs" means the medical assistance program under 216.36chapter 256B and the alternative care program under section 256B.0913. 217.1    (d) "Lead agencies" means counties or a collaboration of counties, tribes, and health 217.2plans administering long-term care consultation assessment and support planning services. 217.3new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012.new text end 217.4    Sec. 12. Minnesota Statutes 2010, section 256B.0911, subdivision 3a, is amended to 217.5read: 217.6    Subd. 3a. Assessment and support planning. (a) Persons requesting assessment, 217.7services planning, or other assistance intended to support community-based living, 217.8including persons who need assessment in order to determine waiver or alternative 217.9care program eligibility, must be visited by a long-term care consultation team within 217.1015 calendarnew text begin 20 calendarnew text end days after the date on which an assessment was requested or 217.11recommended. After January 1, 2011, these requirements also apply to personal care 217.12assistance services, private duty nursing, and home health agency services, on timelines 217.13established in subdivision 5. Face-to-face assessments must be conducted according 217.14to paragraphs (b) to (i). 217.15    (b) The county may utilize a team of either the social worker or public health nurse, 217.16or both. After January 1, 2011, lead agencies shall use certified assessors to conduct the 217.17assessment in a face-to-face interview. The consultation team members must confer 217.18regarding the most appropriate care for each individual screened or assessed. 217.19    (c) The assessment must be comprehensive and include a person-centered 217.20assessment of the health, psychological, functional, environmental, and social needs of 217.21referred individuals and provide information necessary to develop a support plan that 217.22meets the consumers needs, using an assessment form provided by the commissioner. 217.23    (d) The assessment must be conducted in a face-to-face interview with the person 217.24being assessed and the person's legal representative, as required by legally executed 217.25documents, and other individuals as requested by the person, who can provide information 217.26on the needs, strengths, and preferences of the person necessary to develop a support plan 217.27that ensures the person's health and safety, but who is not a provider of service or has any 217.28financial interest in the provision of services. 217.29    (e) The person, or the person's legal representative, must be provided with 217.30written recommendations for community-based services, including consumer-directednew text begin new text end 217.31new text begin self-directed new text end options, or institutional care that include documentation that the most 217.32cost-effective alternatives available were offered to the individual. For purposes of 217.33this requirement, "cost-effective alternatives" means community services and living 217.34arrangements that cost the same as or less than institutional care.new text begin For persons determined new text end 217.35new text begin ineligible for services defined under subdivision 1a, paragraph (a), clauses (7) to (9), the new text end 218.1new text begin community support plan must also include the estimated annual and monthly average new text end 218.2new text begin authorized budget amount for those services.new text end 218.3    (f) If the person chooses to use community-based services, the person or the person's 218.4legal representative must be provided with a written community support plan, regardless 218.5of whether the individual is eligible for Minnesota health care programs. new text begin The written new text end 218.6new text begin community support plan must include:new text end 218.7    new text begin (1) a summary of assessed needs as defined in paragraphs (c) and (d);new text end 218.8    new text begin (2) the individual's options and choices to meet identified needs, including all new text end 218.9new text begin available options for case management services and providers;new text end 218.10    new text begin (3) identification of health and safety risks and how those risks will be addressed, new text end 218.11new text begin including personal risk management strategies;new text end 218.12    new text begin (4) referral information; and new text end 218.13    new text begin (5) informal caregiver supports, if applicable.new text end 218.14    new text begin For persons determined eligible for services defined under subdivision 1a, paragraph new text end 218.15new text begin (a), clauses (7) to (10), the community support plan must also include:new text end 218.16    new text begin (6) identification of individual goals;new text end 218.17    new text begin (7) identification of short-term and long-term service outcomes. Short-term service new text end 218.18new text begin outcomes are defined as achievable within six months; new text end 218.19    new text begin (8) a recommended schedule for case management visits. When achievement of new text end 218.20new text begin short-term service outcomes may affect the amount of service required, the schedule must new text end 218.21new text begin be at least every six months and must reflect evaluation and progress toward identified new text end 218.22new text begin short-term service outcomes; andnew text end 218.23    new text begin (9) the estimated annual and monthly budget amount for services.new text end 218.24    new text begin In addition, for persons determined eligible for state plan home care under new text end 218.25new text begin subdivision 1a, paragraph (a), clause (8), the person or person's representative must also new text end 218.26new text begin receive a copy of the home care service plan developed by a certified assessor.new text end 218.27A person may request assistance in identifying community supports without 218.28participating in a complete assessment. Upon a request for assistance identifying 218.29community support, the person must be transferred or referred to the services available 218.30under sections 256.975, subdivision 7, and 256.01, subdivision 24, for telephone 218.31assistance and follow up. 218.32    (g) The person has the right to make the final decision between institutional 218.33placement and community placement after the recommendations have been provided, 218.34except as provided in subdivision 4a, paragraph (c). 219.1    (h) The team must give the person receiving assessment or support planning, or 219.2the person's legal representative, materials, and forms supplied by the commissioner 219.3containing the following information: 219.4    (1) the need for and purpose of preadmission screening if the person selects nursing 219.5facility placement; 219.6    (2) the role of the long-term care consultation assessment and support planning in 219.7waiver and alternative care program eligibility determination; 219.8    (3) information about Minnesota health care programs; 219.9    (4) the person's freedom to accept or reject the recommendations of the team; 219.10    (5) the person's right to confidentiality under the Minnesota Government Data 219.11Practices Act, chapter 13; 219.12    (6) the long-term care consultant's decision regarding the person's need for 219.13institutional level of care as determined under criteria established in section 144.0724, 219.14subdivision 11 , or 256B.092; and 219.15(7) the person's right to appeal the decision regarding the need for nursing facility 219.16level of care or the county's final decisions regarding public programs eligibility according 219.17to section 256.045, subdivision 3. 219.18    (i) Face-to-face assessment completed as part of eligibility determination for 219.19the alternative care, elderly waiver, community alternatives for disabled individuals, 219.20community alternative care, and traumatic brain injury waiver programs under sections 219.21256B.0915 , 256B.0917, and 256B.49 is valid to establish service eligibility for no more 219.22than 60 calendar days after the date of assessment. The effective eligibility start date 219.23for these programs can never be prior to the date of assessment. If an assessment was 219.24completed more than 60 days before the effective waiver or alternative care program 219.25eligibility start date, assessment and support plan information must be updated in a 219.26face-to-face visit and documented in the department's Medicaid Management Information 219.27System (MMIS).new text begin The updated assessment may be completed by face-to-face visit, written new text end 219.28new text begin communication, or telephone as determined by the commissioner to establish statewide new text end 219.29new text begin consistency.new text end The effective date of program eligibility in this case cannot be prior to the 219.30date the updated assessment is completed. 219.31new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012.new text end 219.32    Sec. 13. Minnesota Statutes 2010, section 256B.0911, subdivision 4a, is amended to 219.33read: 219.34    Subd. 4a. Preadmission screening activities related to nursing facility 219.35admissions. (a) All applicants to Medicaid certified nursing facilities, including certified 220.1boarding care facilities, must be screened prior to admission regardless of income, assets, 220.2or funding sources for nursing facility care, except as described in subdivision 4b. The 220.3purpose of the screening is to determine the need for nursing facility level of care as 220.4described in paragraph (d) and to complete activities required under federal law related to 220.5mental illness and developmental disability as outlined in paragraph (b). 220.6(b) A person who has a diagnosis or possible diagnosis of mental illness or 220.7developmental disability must receive a preadmission screening before admission 220.8regardless of the exemptions outlined in subdivision 4b, paragraph (b), to identify the need 220.9for further evaluation and specialized services, unless the admission prior to screening is 220.10authorized by the local mental health authority or the local developmental disabilities case 220.11manager, or unless authorized by the county agency according to Public Law 101-508. 220.12The following criteria apply to the preadmission screening: 220.13(1) the county must use forms and criteria developed by the commissioner to identify 220.14persons who require referral for further evaluation and determination of the need for 220.15specialized services; and 220.16(2) the evaluation and determination of the need for specialized services must be 220.17done by: 220.18(i) a qualified independent mental health professional, for persons with a primary or 220.19secondary diagnosis of a serious mental illness; or 220.20(ii) a qualified developmental disability professional, for persons with a primary or 220.21secondary diagnosis of developmental disability. For purposes of this requirement, a 220.22qualified developmental disability professional must meet the standards for a qualified 220.23developmental disability professional under Code of Federal Regulations, title 42, section 220.24483.430. 220.25(c) The local county mental health authority or the state developmental disability 220.26authority under Public Law Numbers 100-203 and 101-508 may prohibit admission to a 220.27nursing facility if the individual does not meet the nursing facility level of care criteria or 220.28needs specialized services as defined in Public Law Numbers 100-203 and 101-508. For 220.29purposes of this section, "specialized services" for a person with developmental disability 220.30means active treatment as that term is defined under Code of Federal Regulations, title 220.3142, section 483.440 (a)(1). 220.32(d) The determination of the need for nursing facility level of care must be made 220.33according to criteria establishednew text begin developed by the commissioner, andnew text end in section 144.0724, 220.34subdivision 11 , and 256B.092, using forms developed by the commissioner. new text begin Effective no new text end 220.35new text begin sooner than on or after January 1, 2014, for individuals age 21 and older, and on or after new text end 220.36new text begin October 1, 2019, for individuals under age 21, the determination of need for nursing new text end 221.1new text begin facility level of care shall be based on criteria in section 144.0724, subdivision 11. new text end In 221.2assessing a person's needs, consultation team members shall have a physician available for 221.3consultation and shall consider the assessment of the individual's attending physician, if 221.4any. The individual's physician must be included if the physician chooses to participate. 221.5Other personnel may be included on the team as deemed appropriate by the county. 221.6    Sec. 14. Minnesota Statutes 2010, section 256B.0911, subdivision 6, is amended to 221.7read: 221.8    Subd. 6. Payment for long-term care consultation services. (a) new text begin Seventy-five new text end 221.9new text begin percent of new text end the total payment for each county must be paid monthly by certified nursing 221.10facilities in the county. The monthly amount to be paid by each nursing facility for each 221.11fiscal year must be determined by dividing the county's annual allocation for long-term 221.12care consultation services by 12 to determine the monthly payment and allocating the 221.13monthly payment to each nursing facility based on the number of licensed beds in the 221.14nursing facility. Payments to counties in which there is no certified nursing facility must be 221.15made by increasing the payment rate of the two facilities located nearest to the county seat. 221.16    (b) The commissioner shall include the total annual payment determined under 221.17paragraph (a) for each nursing facility reimbursed under section 256B.431 or 256B.434 221.18according to section 256B.431, subdivision 2b, paragraph (g). 221.19    (c) In the event of the layaway, delicensure and decertification, or removal from 221.20layaway of 25 percent or more of the beds in a facility, the commissioner may adjust 221.21the per diem payment amount in paragraph (b) and may adjust the monthly payment 221.22amount in paragraph (a). The effective date of an adjustment made under this paragraph 221.23shall be on or after the first day of the month following the effective date of the layaway, 221.24delicensure and decertification, or removal from layaway. 221.25    (d) Payments for long-term care consultation services are available to the county 221.26or counties to cover staff salaries and expenses to provide the services described in 221.27subdivision 1a. The county shall employ, or contract with other agencies to employ, within 221.28the limits of available funding, sufficient personnel to provide long-term care consultation 221.29services while meeting the state's long-term care outcomes and objectives as defined in 221.30section 256B.0917, subdivision 1. The county shall be accountable for meeting local 221.31objectives as approved by the commissioner in the biennial home and community-based 221.32services quality assurance plan on a form provided by the commissioner. 221.33    (e) Notwithstanding section 256B.0641, overpayments attributable to payment of the 221.34screening costs under the medical assistance program may not be recovered from a facility. 222.1    (f) The commissioner of human services shall amend the Minnesota medical 222.2assistance plan to include reimbursement for the local consultation teams. 222.3    (g) The county may bill, as case management services, assessments, support 222.4planning, and follow-along provided to persons determined to be eligible for case 222.5management under Minnesota health care programs. No individual or family member 222.6shall be charged for an initial assessment or initial support plan development provided 222.7under subdivision 3a or 3b.new text begin Counties may set a fee schedule for initial assessments and new text end 222.8new text begin support plan development for individuals who are not financially eligible for medical new text end 222.9new text begin assistance or MinnesotaCare. The maximum fee must not be greater than the actual cost new text end 222.10new text begin of the initial assessment and support plan development.new text end 222.11(h) The commissioner shall develop an alternative payment methodology for 222.12long-term care consultation services that includes the funding available under this 222.13subdivision, and sections 256B.092 and 256B.0659. In developing the new payment 222.14methodology, the commissioner shall consider the maximization of federal funding for 222.15this activity. 222.16    Sec. 15. Minnesota Statutes 2010, section 256B.0913, subdivision 4, is amended to 222.17read: 222.18    Subd. 4. Eligibility for funding for services for nonmedical assistance recipients. 222.19    (a) Funding for services under the alternative care program is available to persons who 222.20meet the following criteria: 222.21    (1) the person has been determined by a community assessment under section 222.22256B.0911 to be a person who would require the level of care provided in a nursing 222.23facility, new text begin as determined under section 256B.0911, subdivision 4a, paragraph (d), new text end but for 222.24the provision of services under the alternative care program. Effective January 1, 2011, 222.25this determination must be made according to the criteria established in section 144.0724, 222.26subdivision 11 ; 222.27    (2) the person is age 65 or older; 222.28    (3) the person would be eligible for medical assistance within 135 days of admission 222.29to a nursing facility; 222.30    (4) the person is not ineligible for the payment of long-term care services by the 222.31medical assistance program due to an asset transfer penalty under section 256B.0595 or 222.32equity interest in the home exceeding $500,000 as stated in section 256B.056; 222.33    (5) the person needs long-term care services that are not funded through other 222.34state or federal funding, or other health insurance or other third-party insurance such as 222.35long-term care insurance; 223.1    (6) except for individuals described in clause (7), the monthly cost of the alternative 223.2care services funded by the program for this person does not exceed 75 percent of the 223.3monthly limit described under section 256B.0915, subdivision 3a. This monthly limit 223.4does not prohibit the alternative care client from payment for additional services, but in no 223.5case may the cost of additional services purchased under this section exceed the difference 223.6between the client's monthly service limit defined under section 256B.0915, subdivision 223.73 , and the alternative care program monthly service limit defined in this paragraph. If 223.8care-related supplies and equipment or environmental modifications and adaptations are or 223.9will be purchased for an alternative care services recipient, the costs may be prorated on a 223.10monthly basis for up to 12 consecutive months beginning with the month of purchase. 223.11If the monthly cost of a recipient's other alternative care services exceeds the monthly 223.12limit established in this paragraph, the annual cost of the alternative care services shall be 223.13determined. In this event, the annual cost of alternative care services shall not exceed 12 223.14times the monthly limit described in this paragraph; 223.15    (7) for individuals assigned a case mix classification A as described under section 223.16256B.0915, subdivision 3a , paragraph (a), with (i) no dependencies in activities of daily 223.17living, new text begin or new text end (ii) only one dependencynew text begin up to two dependenciesnew text end in bathing, dressing, grooming, 223.18or walking, or (iii) a dependency score of less than three if eating is the only dependencynew text begin new text end 223.19new text begin and eating when the dependency score in eating is three or greaternew text end as determined by 223.20an assessment performed under section 256B.0911, the monthly cost of alternative 223.21care services funded by the program cannot exceed $600new text begin $593new text end per month for all new 223.22participants enrolled in the program on or after July 1, 2009new text begin 2011new text end . This monthly limit 223.23shall be applied to all other participants who meet this criteria at reassessment. This 223.24monthly limit shall be increased annually as described in section 256B.0915, subdivision 223.253a , paragraph (a). This monthly limit does not prohibit the alternative care client from 223.26payment for additional services, but in no case may the cost of additional services 223.27purchased exceed the difference between the client's monthly service limit defined in this 223.28clause and the limit described in clause (6) for case mix classification A; and 223.29(8) the person is making timely payments of the assessed monthly fee. 223.30A person is ineligible if payment of the fee is over 60 days past due, unless the person 223.31agrees to: 223.32    (i) the appointment of a representative payee; 223.33    (ii) automatic payment from a financial account; 223.34    (iii) the establishment of greater family involvement in the financial management of 223.35payments; or 223.36    (iv) another method acceptable to the lead agency to ensure prompt fee payments. 224.1    The lead agency may extend the client's eligibility as necessary while making 224.2arrangements to facilitate payment of past-due amounts and future premium payments. 224.3Following disenrollment due to nonpayment of a monthly fee, eligibility shall not be 224.4reinstated for a period of 30 days. 224.5    (b) Alternative care funding under this subdivision is not available for a person 224.6who is a medical assistance recipient or who would be eligible for medical assistance 224.7without a spenddown or waiver obligation. A person whose initial application for medical 224.8assistance and the elderly waiver program is being processed may be served under the 224.9alternative care program for a period up to 60 days. If the individual is found to be eligible 224.10for medical assistance, medical assistance must be billed for services payable under the 224.11federally approved elderly waiver plan and delivered from the date the individual was 224.12found eligible for the federally approved elderly waiver plan. Notwithstanding this 224.13provision, alternative care funds may not be used to pay for any service the cost of which: 224.14(i) is payable by medical assistance; (ii) is used by a recipient to meet a waiver obligation; 224.15or (iii) is used to pay a medical assistance income spenddown for a person who is eligible 224.16to participate in the federally approved elderly waiver program under the special income 224.17standard provision. 224.18    (c) Alternative care funding is not available for a person who resides in a licensed 224.19nursing home, certified boarding care home, hospital, or intermediate care facility, except 224.20for case management services which are provided in support of the discharge planning 224.21process for a nursing home resident or certified boarding care home resident to assist with 224.22a relocation process to a community-based setting. 224.23    (d) Alternative care funding is not available for a person whose income is greater 224.24than the maintenance needs allowance under section 256B.0915, subdivision 1d, but equal 224.25to or less than 120 percent of the federal poverty guideline effective July 1 in the fiscal 224.26year for which alternative care eligibility is determined, who would be eligible for the 224.27elderly waiver with a waiver obligation. 224.28    Sec. 16. Minnesota Statutes 2010, section 256B.0915, subdivision 3a, is amended to 224.29read: 224.30    Subd. 3a. Elderly waiver cost limits. (a) The monthly limit for the cost of 224.31waivered services to an individual elderly waiver client except for individuals described 224.32in paragraph (b) shall be the weighted average monthly nursing facility rate of the case 224.33mix resident class to which the elderly waiver client would be assigned under Minnesota 224.34Rules, parts 9549.0050 to 9549.0059, less the recipient's maintenance needs allowance 224.35as described in subdivision 1d, paragraph (a), until the first day of the state fiscal year in 225.1which the resident assessment system as described in section 256B.438 for nursing home 225.2rate determination is implemented. Effective on the first day of the state fiscal year in 225.3which the resident assessment system as described in section 256B.438 for nursing home 225.4rate determination is implemented and the first day of each subsequent state fiscal year, the 225.5monthly limit for the cost of waivered services to an individual elderly waiver client shall 225.6be the rate of the case mix resident class to which the waiver client would be assigned 225.7under Minnesota Rules, parts 9549.0050 to 9549.0059, in effect on the last day of the 225.8previous state fiscal year, adjusted by the greater of any legislatively adopted home and 225.9community-based services percentage rate increase or the average statewide percentage 225.10increase in nursing facility payment ratesnew text begin adjustmentnew text end . 225.11    (b) The monthly limit for the cost of waivered services to an individual elderly 225.12waiver client assigned to a case mix classification A under paragraph (a) withnew text begin :new text end 225.13(1) no dependencies in activities of daily living,new text begin ; ornew text end 225.14(2) only one dependencynew text begin up to two dependenciesnew text end in bathing, dressing, grooming, or 225.15walking, or (3) a dependency score of less than three if eating is the only dependency,new text begin new text end 225.16new text begin and eating when the dependency score in eating is three or greater as determined by an new text end 225.17new text begin assessment performed under section 256B.0911new text end 225.18 shall be the lower of the case mix classification amount for case mix A as determined 225.19under paragraph (a) or the case mix classification amount for case mix A new text begin $1,750 per new text end 225.20new text begin month new text end effective on Octobernew text begin Julynew text end 1, 2008new text begin 2011new text end , per month for all new participants enrolled 225.21in the program on or after July 1, 2009new text begin 2011new text end . This monthly limit shall be applied to all 225.22other participants who meet this criteria at reassessment.new text begin This monthly limit shall be new text end 225.23new text begin increased annually as described in paragraph (a).new text end 225.24(c) If extended medical supplies and equipment or environmental modifications are 225.25or will be purchased for an elderly waiver client, the costs may be prorated for up to 225.2612 consecutive months beginning with the month of purchase. If the monthly cost of a 225.27recipient's waivered services exceeds the monthly limit established in paragraph (a) or 225.28(b), the annual cost of all waivered services shall be determined. In this event, the annual 225.29cost of all waivered services shall not exceed 12 times the monthly limit of waivered 225.30services as described in paragraph (a) or (b). 225.31    Sec. 17. Minnesota Statutes 2010, section 256B.0915, subdivision 3b, is amended to 225.32read: 225.33    Subd. 3b. Cost limits for elderly waiver applicants who reside in a nursing 225.34facility. (a) For a person who is a nursing facility resident at the time of requesting a 225.35determination of eligibility for elderly waivered services, a monthly conversion new text begin budget new text end 226.1limit for the cost of elderly waivered services may be requested. The monthly conversion 226.2new text begin budget new text end limit for the cost of elderly waiver services shall be the resident class assigned 226.3under Minnesota Rules, parts 9549.0050 to 9549.0059, for that resident in the nursing 226.4facility where the resident currently resides until July 1 of the state fiscal year in which 226.5the resident assessment system as described in section 256B.438 for nursing home rate 226.6determination is implemented. Effective on July 1 of the state fiscal year in which the 226.7resident assessment system as described in section 256B.438 for nursing home rate 226.8determination is implemented, the monthly conversion new text begin budget new text end limit for the cost of elderly 226.9waiver services shall be new text begin based on new text end the per diem nursing facility rate as determined by the 226.10resident assessment system as described in section 256B.438 for that residentnew text begin residentsnew text end 226.11in the nursing facility where the residentnew text begin elderly waiver applicantnew text end currently resides 226.12multipliednew text begin . The monthly conversion budget limit shall be calculated by multiplying the new text end 226.13new text begin per diemnew text end by 365 andnew text begin , new text end divided by 12, lessnew text begin and reduced by new text end the recipient's maintenance needs 226.14allowance as described in subdivision 1d. The initially approved new text begin monthly new text end conversion rate 226.15maynew text begin budget limit shallnew text end be adjusted by the greater of any subsequent legislatively adopted 226.16home and community-based services percentage rate increase or the average statewide 226.17percentage increase in nursing facility payment ratesnew text begin annually as described in subdivision new text end 226.18new text begin 3a, paragraph (a)new text end . The limit under this subdivision only applies to persons discharged from 226.19a nursing facility after a minimum 30-day stay and found eligible for waivered services 226.20on or after July 1, 1997. For conversions from the nursing home to the elderly waiver 226.21with consumer directed community support services, the conversion rate limit is equal to 226.22the nursing facility ratenew text begin per diem used to calculate the monthly conversion budget limit new text end 226.23new text begin must benew text end reduced by a percentage equal to the percentage difference between the consumer 226.24directed services budget limit that would be assigned according to the federally approved 226.25waiver plan and the corresponding community case mix cap, but not to exceed 50 percent. 226.26    (b) The following costs must be included in determining the total monthly costs 226.27for the waiver client: 226.28    (1) cost of all waivered services, including extended medicalnew text begin specializednew text end supplies 226.29and equipment and environmental modifications andnew text begin accessibilitynew text end adaptations; and 226.30    (2) cost of skilled nursing, home health aide, and personal care services reimbursable 226.31by medical assistance. 226.32    Sec. 18. Minnesota Statutes 2010, section 256B.0915, subdivision 3e, is amended to 226.33read: 226.34    Subd. 3e. Customized living service rate. (a) Payment for customized living 226.35services shall be a monthly rate authorized by the lead agency within the parameters 227.1established by the commissioner. The payment agreement must delineate the amount of 227.2each component service included in the recipient's customized living service plan. The 227.3lead agency shall ensure that there is a documented need within the parameters established 227.4by the commissioner for all component customized living services authorized. 227.5(b) The payment rate must be based on the amount of component services to be 227.6provided utilizing component rates established by the commissioner. Counties and tribes 227.7shall use tools issued by the commissioner to develop and document customized living 227.8service plans and rates. 227.9(c) Component service rates must not exceed payment rates for comparable elderly 227.10waiver or medical assistance services and must reflect economies of scale. Customized 227.11living services must not include rent or raw food costs. 227.12    (d) new text begin With the exception of individuals described in subdivision 3a, paragraph (b), new text end the 227.13individualized monthly authorized payment for the customized living service plan shall 227.14not exceed 50 percent of the greater of either the statewide or any of the geographic 227.15groups' weighted average monthly nursing facility rate of the case mix resident class 227.16to which the elderly waiver eligible client would be assigned under Minnesota Rules, 227.17parts 9549.0050 to 9549.0059, less the maintenance needs allowance as described 227.18in subdivision 1d, paragraph (a), until the July 1 of the state fiscal year in which the 227.19resident assessment system as described in section 256B.438 for nursing home rate 227.20determination is implemented. Effective on July 1 of the state fiscal year in which 227.21the resident assessment system as described in section 256B.438 for nursing home 227.22rate determination is implemented and July 1 of each subsequent state fiscal year, the 227.23individualized monthly authorized payment for the services described in this clause shall 227.24not exceed the limit which was in effect on June 30 of the previous state fiscal year 227.25updated annually based on legislatively adopted changes to all service rate maximums for 227.26home and community-based service providers. 227.27new text begin (e) Effective July 1, 2011, the individualized monthly payment for the customized new text end 227.28new text begin living service plan for individuals described in subdivision 3a, paragraph (b), must be the new text end 227.29new text begin monthly authorized payment limit for customized living for individuals classified as case new text end 227.30new text begin mix A, reduced by 25 percent. This rate limit must be applied to all new participants new text end 227.31new text begin enrolled in the program on or after July 1, 2011, who meet the criteria described in new text end 227.32new text begin subdivision 3a, paragraph (b). This monthly limit also applies to all other participants who new text end 227.33new text begin meet the criteria described in subdivision 3a, paragraph (b), at reassessment.new text end 227.34    (e)new text begin (f)new text end Customized living services are delivered by a provider licensed by the 227.35Department of Health as a class A or class F home care provider and provided in a 228.1building that is registered as a housing with services establishment under chapter 144D.new text begin new text end 228.2new text begin Licensed home care providers are subject to section 256B.0651, subdivision 14.new text end 228.3new text begin (g) A provider may not bill or otherwise charge an elderly waiver participant or their new text end 228.4new text begin family for additional units of any allowable component service beyond those available new text end 228.5new text begin under the service rate limits described in paragraph (d), nor for additional units of any new text end 228.6new text begin allowable component service beyond those approved in the service plan by the lead agency.new text end 228.7    Sec. 19. Minnesota Statutes 2010, section 256B.0915, subdivision 3h, is amended to 228.8read: 228.9    Subd. 3h. Service rate limits; 24-hour customized living services. (a) The 228.10payment rate for 24-hour customized living services is a monthly rate authorized by the 228.11lead agency within the parameters established by the commissioner of human services. 228.12The payment agreement must delineate the amount of each component service included in 228.13each recipient's customized living service plan. The lead agency shall ensure that there is a 228.14documented need within the parameters established by the commissioner for all component 228.15customized living services authorized. The lead agency shall not authorize 24-hour 228.16customized living services unless there is a documented need for 24-hour supervision. 228.17(b) For purposes of this section, "24-hour supervision" means that the recipient 228.18requires assistance due to needs related to one or more of the following: 228.19    (1) intermittent assistance with toileting, positioning, or transferring; 228.20    (2) cognitive or behavioral issues; 228.21    (3) a medical condition that requires clinical monitoring; or 228.22    (4) for all new participants enrolled in the program on or after Januarynew text begin Julynew text end 1, 2011, 228.23and all other participants at their first reassessment after Januarynew text begin Julynew text end 1, 2011, dependency 228.24in at least twonew text begin threenew text end of the following activities of daily living as determined by assessment 228.25under section 256B.0911: bathing; dressing; grooming; walking; or eatingnew text begin when the new text end 228.26new text begin dependency score in eating is three or greaternew text end ; and needs medication management and at 228.27least 50 hours of service per month. The lead agency shall ensure that the frequency and 228.28mode of supervision of the recipient and the qualifications of staff providing supervision 228.29are described and meet the needs of the recipient. 228.30(c) The payment rate for 24-hour customized living services must be based on the 228.31amount of component services to be provided utilizing component rates established by the 228.32commissioner. Counties and tribes will use tools issued by the commissioner to develop 228.33and document customized living plans and authorize rates. 228.34(d) Component service rates must not exceed payment rates for comparable elderly 228.35waiver or medical assistance services and must reflect economies of scale. 229.1(e) The individually authorized 24-hour customized living payments, in combination 229.2with the payment for other elderly waiver services, including case management, must not 229.3exceed the recipient's community budget cap specified in subdivision 3a. Customized 229.4living services must not include rent or raw food costs. 229.5(f) The individually authorized 24-hour customized living payment rates shall not 229.6exceed the 95 percentile of statewide monthly authorizations for 24-hour customized 229.7living services in effect and in the Medicaid management information systems on March 229.831, 2009, for each case mix resident class under Minnesota Rules, parts 9549.0050 229.9to 9549.0059, to which elderly waiver service clients are assigned. When there are 229.10fewer than 50 authorizations in effect in the case mix resident class, the commissioner 229.11shall multiply the calculated service payment rate maximum for the A classification by 229.12the standard weight for that classification under Minnesota Rules, parts 9549.0050 to 229.139549.0059, to determine the applicable payment rate maximum. Service payment rate 229.14maximums shall be updated annually based on legislatively adopted changes to all service 229.15rates for home and community-based service providers. 229.16    (g) Notwithstanding the requirements of paragraphs (d) and (f), the commissioner 229.17may establish alternative payment rate systems for 24-hour customized living services in 229.18housing with services establishments which are freestanding buildings with a capacity of 229.1916 or fewer, by applying a single hourly rate for covered component services provided 229.20in either: 229.21    (1) licensed corporate adult foster homes; or 229.22    (2) specialized dementia care units which meet the requirements of section 144D.065 229.23and in which: 229.24    (i) each resident is offered the option of having their own apartment; or 229.25    (ii) the units are licensed as board and lodge establishments with maximum capacity 229.26of eight residents, and which meet the requirements of Minnesota Rules, part 9555.6205, 229.27subparts 1, 2, 3, and 4, item A. 229.28new text begin (h) A provider may not bill or otherwise charge an elderly waiver participant or their new text end 229.29new text begin family for additional units of any allowable component service beyond those available new text end 229.30new text begin under the service rate limits described in paragraph (e), nor for additional units of any new text end 229.31new text begin allowable component service beyond those approved in the service plan by the lead agency.new text end 229.32    Sec. 20. Minnesota Statutes 2010, section 256B.0915, subdivision 5, is amended to 229.33read: 229.34    Subd. 5. Assessments and reassessments for waiver clients. (a) Each client 229.35shall receive an initial assessment of strengths, informal supports, and need for services 230.1in accordance with section 256B.0911, subdivisions 3, 3a, and 3b. A reassessment of a 230.2client served under the elderly waiver must be conducted at least every 12 months and 230.3at other times when the case manager determines that there has been significant change 230.4in the client's functioning. This may include instances where the client is discharged 230.5from the hospital. There must be a determination that the client requires nursing facility 230.6level of care as defined in section 144.0724, subdivision 11new text begin 256B.0911, subdivision 4a, new text end 230.7new text begin paragraph (d)new text end , at initial and subsequent assessments to initiate and maintain participation 230.8in the waiver program. 230.9(b) Regardless of other assessments identified in section 144.0724, subdivision 230.104, as appropriate to determine nursing facility level of care for purposes of medical 230.11assistance payment for nursing facility services, only face-to-face assessments conducted 230.12according to section 256B.0911, subdivisions 3a and 3b, that result in a nursing facility 230.13level of care determination will be accepted for purposes of initial and ongoing access to 230.14waiver service payment. 230.15    Sec. 21. Minnesota Statutes 2010, section 256B.0915, subdivision 10, is amended to 230.16read: 230.17    Subd. 10. Waiver payment rates; managed care organizations. The 230.18commissioner shall adjust the elderly waiver capitation payment rates for managed care 230.19organizations paid under section 256B.69, subdivisions 6a and 23, to reflect the maximum 230.20service rate limits for customized living services and 24-hour customized living services 230.21under subdivisions 3e and 3h for the contract period beginning October 1, 2009. Medical 230.22assistance rates paid to customized living providers by managed care organizations under 230.23this section shall not exceed the maximum service rate limits new text begin and component rates as new text end 230.24determined by the commissioner under subdivisions 3e and 3h. 230.25    Sec. 22. Minnesota Statutes 2010, section 256B.0916, subdivision 6a, is amended to 230.26read: 230.27    Subd. 6a. Statewide availability of consumer-directed communitynew text begin self-directed new text end 230.28 support services. (a) The commissioner shall submit to the federal Health Care Financing 230.29Administration by August 1, 2001, an amendment to the home and community-based 230.30waiver for persons with developmental disabilitiesnew text begin under section 256B.092 and by April 1, new text end 230.31new text begin 2005, for waivers under sections 256B.0915 and 256B.49, new text end to make consumer-directed 230.32community new text begin self-directed new text end support services available in every county of the state by January 230.331, 2002. 231.1(b) new text begin Until the waiver amendment for self-directed community supports under new text end 231.2new text begin section 54 is effective, new text end if a county declines to meet the requirements for provision of 231.3consumer-directed community new text begin self-directed new text end supports, the commissioner shall contract 231.4with another county, a group of counties, or a private agency to plan for and administer 231.5consumer-directed communitynew text begin self-directed new text end supports in that county. 231.6(c) The state of Minnesota, county agencies, tribal governments, or administrative 231.7entities under contract to participate in the implementation and administration of the home 231.8and community-based waiver for persons with developmental disabilities, shall not be 231.9liable for damages, injuries, or liabilities sustained through the purchase of support by the 231.10individual, the individual's family, legal representative, or the authorized representative 231.11with funds received through the consumer-directed communitynew text begin self-directednew text end support 231.12service under this section. Liabilities include but are not limited to: workers' compensation 231.13liability, the Federal Insurance Contributions Act (FICA), or the Federal Unemployment 231.14Tax Act (FUTA). 231.15new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2011.new text end 231.16    Sec. 23. Minnesota Statutes 2010, section 256B.092, subdivision 1a, is amended to 231.17read: 231.18    Subd. 1a. Case management administration and services. (a) The administrative 231.19functions of case management provided to or arranged for a person include: 231.20(1) review of eligibility for services; 231.21(2) screening; 231.22(3) intake; 231.23(4) diagnosis; 231.24(5) the review and authorization of services based upon an individualized service 231.25plan; and 231.26(6) responding to requests for conciliation conferences and appeals according 231.27to section made by the person, the person's legal guardian or conservator, or 231.28the parent if the person is a minor.new text begin Case management services must be provided by a new text end 231.29new text begin public or private agency that is enrolled as a medical assistance provider determined by new text end 231.30new text begin the commissioner to meet all of the requirements in the approved federal waiver plans. new text end 231.31new text begin Case management services cannot be provided to a recipient by a private agency that has new text end 231.32new text begin any financial interest in the provisions of any other services included in the recipient's new text end 231.33new text begin coordinated service and support plan.new text end 231.34(b) Case management service activities provided to or arranged for a person includenew text begin new text end 231.35new text begin services must be provided to each recipient of home and community-based waiver new text end 232.1new text begin services and available to those eligible for case management under sections 256B.0621 new text end 232.2new text begin and 256B.0924, subdivision 4, who choose this service. Case management services for an new text end 232.3new text begin eligible person includenew text end : 232.4(1) development of the individual new text begin coordinated new text end service new text begin and support new text end plan; 232.5(2) informing the individual or the individual's legal guardian or conservator, or 232.6parent if the person is a minor, of service options; 232.7(3) consulting with relevant medical experts or service providers; 232.8(4) assisting the person in the identification of potential providers; 232.9(5) assisting the person to access services; 232.10(6) coordination of services, new text begin including coordinating with the person's health care new text end 232.11new text begin home or health coordinator, new text end if coordination new text begin of long-term care or community supports and new text end 232.12new text begin health care new text end is not provided by another service provider; 232.13(7) evaluation and monitoring of the services identified in the plannew text begin including at least new text end 232.14new text begin one face-to-face visit with each person annually by the case managernew text end ; and 232.15(8) annual reviews of service plans and services providednew text begin providing the lead agency new text end 232.16new text begin with recommendations for service authorization based upon the individual's needs new text end 232.17new text begin identified in the support plan within ten working days after receiving the community new text end 232.18new text begin support plan from the certified assessor under section 256B.0911new text end . 232.19(c) Case management administration and service activities that are provided to the 232.20person with a developmental disability shall be provided directly by county agencies or 232.21under contractnew text begin a public or private agency that is enrolled as a medical assistance provider new text end 232.22new text begin determined by the commissioner to meet all of the requirements in section 256B.0621, new text end 232.23new text begin subdivision 5, paragraphs (a) and (b), clauses (1) to (5), and has no financial interest in the new text end 232.24new text begin provision of any other services to the person choosing case management servicenew text end . 232.25(d) Case managers are responsible for the administrative duties and service 232.26provisions listed in paragraphs (a) and (b). Case managers shall collaborate with 232.27consumers, families, legal representatives, and relevant medical experts and service 232.28providers in the development and annual review of the individualized service and 232.29habilitation plans. 232.30(e) The Department of Human Services shall offer ongoing education in case 232.31management to case managers. Case managers shall receive no less than ten hours of case 232.32management education and disability-related training each year. 232.33new text begin (f) Persons eligible for home and community-based waiver services may choose a new text end 232.34new text begin case management service provider from among the public or private vendors enrolled new text end 232.35new text begin according to paragraph (d).new text end 233.1new text begin (g) For persons eligible for case management under section 256B.0924, and new text end 233.2new text begin Minnesota Rules, parts 9525.0004 to 9525.0036, the county or lead agency shall designate new text end 233.3new text begin the case management service provider.new text end 233.4new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2013, except subdivision new text end 233.5new text begin 1a, paragraph (b), clause (6), is effective July 1, 2011.new text end 233.6    Sec. 24. Minnesota Statutes 2010, section 256B.092, subdivision 1b, is amended to 233.7read: 233.8    Subd. 1b. Individualnew text begin Coordinatednew text end service new text begin and support new text end plan. The individual new text begin Each new text end 233.9new text begin recipient of case management services and any legal representative shall be provided a new text end 233.10new text begin written copy of the coordinated new text end service new text begin and support new text end plan mustnew text begin , whichnew text end : 233.11(1) include new text begin is developed within ten working days after the case management service new text end 233.12new text begin receives the community support plan from the certified assessor under section 256B.0911;new text end 233.13new text begin (2) includes new text end the results of the assessment information on the person's need for 233.14service, including identification of service needs that will be or that are met by the person's 233.15relatives, friends, and others, as well as community services used by the general public; 233.16new text begin (3) reasonably assures the health, safety, and welfare of the recipient;new text end 233.17(2) identify new text begin (4) identifies new text end the person's preferences for services as stated by the person, 233.18the person's legal guardian or conservator, or the parent if the person is a minor; 233.19new text begin (5) provides for an informed choice, as defined in section 256B.77, subdivision 2, new text end 233.20new text begin paragraph (o), of service and support providers;new text end 233.21(3) identify new text begin (6) identifies new text end long- and short-range goals for the person; 233.22(4) identifynew text begin (7) identifiesnew text end specific services and the amount and frequency of the 233.23services to be provided to the person based on assessed needs, preferences, and available 233.24resources. The individual service plan shall also specify other services the person needs 233.25that are not availablenew text begin , and other services the person needs that are not available. The new text end 233.26new text begin individual coordinated service and support plan shall also specify service outcomes and new text end 233.27new text begin the provider's responsibility to monitor the achievement of the service outcomesnew text end ; 233.28(5) identifynew text begin (8) identifiesnew text end the need for an individual program new text begin individual's provider new text end 233.29plan to be developed by the provider according to the respective state and federal licensing 233.30and certification standards, and additional assessments to be completed or arranged by the 233.31provider after service initiation; 233.32(6) identifynew text begin (9) identifiesnew text end provider responsibilities to implement and make 233.33recommendations for modification to the individual new text begin coordinated new text end service new text begin and support new text end plan; 233.34(7) include new text begin (10) includes new text end notice of the right to new text begin have assessments completed and new text end 233.35new text begin service plans developed within specified time periods, the right to appeal action or new text end 234.1new text begin inaction, and the right to new text end request a conciliation conference or a hearingnew text begin an appealnew text end under 234.2section 256.045; 234.3(8) benew text begin (11) isnew text end agreed upon and signed by the person, the person's legal guardian 234.4or conservator, or the parent if the person is a minor, and the authorized county 234.5representative; and 234.6(9) benew text begin (12) isnew text end reviewed by a health professional if the person has overriding medical 234.7needs that impact the delivery of services. 234.8Service planning formats developed for interagency planning such as transition, 234.9vocational, and individual family service plans may be substituted for service planning 234.10formats developed by county agencies. 234.11new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2013.new text end 234.12    Sec. 25. Minnesota Statutes 2010, section 256B.092, subdivision 1e, is amended to 234.13read: 234.14    Subd. 1e. new text begin Case management service monitoring, new text end coordination, new text begin and new text end evaluation, 234.15and monitoring of servicesnew text begin dutiesnew text end . (a) If the individual new text begin coordinated new text end service new text begin and support new text end 234.16plan identifies the need for individual program new text begin provider new text end plans for authorized services, 234.17the case manager new text begin management service provider new text end shall assure that individual program new text begin the new text end 234.18new text begin individual provider new text end plans are developed by the providers according to clauses (2) to (5). 234.19The providers shall assure that the individual program new text begin provider new text end plans: 234.20(1) are developed according to the respective state and federal licensing and 234.21certification requirements; 234.22(2) are designed to achieve the goals of the individual service plan; 234.23(3) are consistent with other aspects of the individual new text begin coordinated new text end service new text begin and new text end 234.24new text begin support new text end plan; 234.25(4) assure the health and safety of the person; and 234.26(5) are developed with consistent and coordinated approaches to services new text begin and service new text end 234.27new text begin outcomesnew text end among the various service providers. 234.28(b) The case manager new text begin management service provider new text end shall monitor the provision of 234.29services: 234.30(1) to assure that the individual service plan is being followed according to 234.31paragraph (a); 234.32(2) to identify any changes or modifications that might be needed in the individual 234.33service plan, including changes resulting from recommendations of current service 234.34providers; 235.1(3) to determine if the person's legal rights are protected, and if not, notify the 235.2person's legal guardian or conservator, or the parent if the person is a minor, protection 235.3services, or licensing agencies as appropriate; and 235.4(4) to determine if the person, the person's legal guardian or conservator, or the 235.5parent if the person is a minor, is satisfied with the services provided. 235.6(c) If the provider fails to develop or carry out the individual programnew text begin providernew text end plan 235.7according to paragraph (a), the case manager shall notify the person's legal guardian or 235.8conservator, or the parent if the person is a minor, the provider, the respective licensing 235.9and certification agencies, and the county board where the services are being provided. In 235.10addition, the case manager shall identify other steps needed to assure the person receives 235.11the services identified in the individual new text begin coordinated new text end service new text begin and support new text end plan. 235.12new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012.new text end 235.13    Sec. 26. Minnesota Statutes 2010, section 256B.092, subdivision 1g, is amended to 235.14read: 235.15    Subd. 1g. Conditions not requiring development of individual new text begin a coordinated new text end 235.16service new text begin and support new text end plan. Unless otherwise required by federal law, the county agency is 235.17not required to complete an individualnew text begin a coordinatednew text end service new text begin and support new text end plan as defined in 235.18subdivision 1b for: 235.19(1) persons whose families are requesting respite care for their family member who 235.20resides with them, or whose families are requesting a family support grant and are not 235.21requesting purchase or arrangement of habilitative services; and 235.22(2) persons with developmental disabilities, living independently without authorized 235.23services or receiving funding for services at a rehabilitation facility as defined in section 235.24268A.01, subdivision 6 , and not in need of or requesting additional services. 235.25new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012.new text end 235.26    Sec. 27. Minnesota Statutes 2010, section 256B.092, subdivision 3, is amended to read: 235.27    Subd. 3. Authorization and termination of services. County agency case 235.28managersnew text begin Lead agenciesnew text end , under rules of the commissioner, shall authorize and terminate 235.29services of community and regional treatment center providers according to individualnew text begin new text end 235.30new text begin coordinated new text end service new text begin and support new text end plans. Services provided to persons with developmental 235.31disabilities may only be authorized and terminated by case managers according to (1) 235.32rules of the commissioner and (2) the individual new text begin coordinated new text end service new text begin and support new text end plan as 235.33defined in subdivision 1b. Medical assistance services not needed shall not be authorized 236.1by county agencies or funded by the commissioner. When purchasing or arranging for 236.2unlicensed respite care services for persons with overriding health needs, the county 236.3agency shall seek the advice of a health care professional in assessing provider staff 236.4training needs and skills necessary to meet the medical needs of the person. 236.5new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012.new text end 236.6    Sec. 28. Minnesota Statutes 2010, section 256B.092, subdivision 8, is amended to read: 236.7    Subd. 8. Screening team new text begin Additional certified assessor new text end duties. The screening team 236.8new text begin certified assessor new text end shall: 236.9(1) review diagnostic data; 236.10(2) review health, social, and developmental assessment data using a uniform 236.11screening new text begin comprehensive assessment new text end tool specified by the commissioner; 236.12(3) identify the level of services appropriate to maintain the person in the most 236.13normal and least restrictive setting that is consistent with the person's treatment needs; 236.14(4) identify other noninstitutional public assistance or social service that may prevent 236.15or delay long-term residential placement; 236.16(5) assess whether a person is in need of long-term residential care; 236.17(6) make recommendations regarding placement new text begin services new text end and payment for: (i) social 236.18service or public assistance support, or both, to maintain a person in the person's own home 236.19or other place of residence; (ii) training and habilitation service, vocational rehabilitation, 236.20and employment training activities; (iii) community residential placementnew text begin servicesnew text end ; (iv) 236.21regional treatment center placement; or (v)new text begin (iv) new text end a home and community-based service 236.22alternative to community residential placement or regional treatment center placement; 236.23(7) evaluate the availability, location, and quality of the services listed in clause 236.24(6), including the impact of placement alternatives new text begin services and supports options new text end on the 236.25person's ability to maintain or improve existing patterns of contact and involvement with 236.26parents and other family members; 236.27(8) identify the cost implications of recommendations in clause (6)new text begin and provide new text end 236.28new text begin written notice of the annual and monthly average authorized amount to be spent for new text end 236.29new text begin services for the recipientnew text end ; 236.30(9) make recommendations to a court as may be needed to assist the court in making 236.31decisions regarding commitment of persons with developmental disabilities; and 236.32(10) inform the person and the person's legal guardian or conservator, or the parent if 236.33the person is a minor, that appeal may be made to the commissioner pursuant to section 236.34256.045 . 237.1new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012.new text end 237.2    Sec. 29. new text begin [256B.0961] STATE QUALITY ASSURANCE, QUALITY new text end 237.3new text begin IMPROVEMENT, AND LICENSING SYSTEM.new text end 237.4    new text begin Subdivision 1.new text end new text begin Scope.new text end new text begin (a) In order to improve the quality of services provided to new text end 237.5new text begin Minnesotans with disabilities and to meet the requirements of the federally approved new text end 237.6new text begin home and community-based waivers under section 1915c of the Social Security Act, a new text end 237.7new text begin State Quality Assurance, Quality Improvement, and Licensing System for Minnesotans new text end 237.8new text begin receiving disability services is enacted. This system is a partnership between the new text end 237.9new text begin Department of Human Services and the State Quality Council established under new text end 237.10new text begin subdivision 3.new text end 237.11    new text begin (b) This system is a result of the recommendations from the Department of Human new text end 237.12new text begin Services' licensing and alternative quality assurance study mandated under Laws 2005, new text end 237.13new text begin First Special Session chapter 4, article 7, section 57, and presented to the legislature new text end 237.14new text begin in February 2007.new text end 237.15    new text begin (c) The disability services eligible under this section include:new text end 237.16    new text begin (1) the home and community-based services waiver programs for persons with new text end 237.17new text begin developmental disabilities under section 256B.092, subdivision 4, or section 256B.49, new text end 237.18new text begin including traumatic brain injuries and services for those who qualify for nursing facility new text end 237.19new text begin level of care or hospital facility level of care;new text end 237.20    new text begin (2) home care services under section 256B.0651;new text end 237.21    new text begin (3) family support grants under section 252.32;new text end 237.22    new text begin (4) consumer support grants under section 256.476;new text end 237.23    new text begin (5) semi-independent living services under section 252.275; andnew text end 237.24    new text begin (6) services provided through an intermediate care facility for the developmentally new text end 237.25new text begin disabled.new text end 237.26    new text begin (d) For purposes of this section, the following definitions apply:new text end 237.27    new text begin (1) "commissioner" means the commissioner of human services;new text end 237.28    new text begin (2) "council" means the State Quality Council under subdivision 3;new text end 237.29    new text begin (3) "Quality Assurance Commission" means the commission under section new text end 237.30new text begin 256B.0951; andnew text end 237.31    new text begin (4) "system" means the State Quality Assurance, Quality Improvement and new text end 237.32new text begin Licensing System under this section.new text end 237.33    new text begin Subd. 2.new text end new text begin Duties of the commissioner of human services.new text end new text begin (a) The commissioner of new text end 237.34new text begin human services shall establish the State Quality Council under subdivision 3.new text end 238.1    new text begin (b) The commissioner shall initially delegate authority to perform licensing new text end 238.2new text begin functions and activities according to section 245A.16 to a host county in Region 10. The new text end 238.3new text begin commissioner must not license or reimburse a participating facility, program, or service new text end 238.4new text begin located in Region 10 if the commissioner has received notification from the host county new text end 238.5new text begin that the facility, program, or service has failed to qualify for licensure.new text end 238.6    new text begin (c) The commissioner may conduct random licensing inspections based on outcomes new text end 238.7new text begin adopted under section 256B.0951, subdivision 3, at facilities or programs, and of services new text end 238.8new text begin eligible under this section. The role of the random inspections is to verify that the system new text end 238.9new text begin protects the safety and well-being of persons served and maintains the availability of new text end 238.10new text begin high-quality services for persons with disabilities.new text end 238.11    new text begin (d) The commissioner shall ensure that the federal home and community-based new text end 238.12new text begin waiver requirements are met and that incidents that may have jeopardized safety and health new text end 238.13new text begin or violated services-related assurances, civil and human rights, and other protections new text end 238.14new text begin designed to prevent abuse, neglect, and exploitation, are reviewed, investigated, and new text end 238.15new text begin acted upon in a timely manner.new text end 238.16    new text begin (e) The commissioner shall seek a federal waiver by July 1, 2012 to allow new text end 238.17new text begin intermediate care facilities for persons with developmental disabilities to participate in new text end 238.18new text begin this system.new text end 238.19    new text begin Subd. 3.new text end new text begin State Quality Council.new text end new text begin (a) There is hereby created a State Quality new text end 238.20new text begin Council which must define regional quality councils, and carry out a community-based, new text end 238.21new text begin person-directed quality review component, and a comprehensive system for effective new text end 238.22new text begin incident reporting, investigation, analysis, and follow-up.new text end 238.23    new text begin (b) By August 1, 2011, the commissioner of human services shall appoint the new text end 238.24new text begin members of the initial State Quality Council. Members shall include representatives new text end 238.25new text begin from the following groups:new text end 238.26    new text begin (1) disability service recipients and their family members; new text end 238.27    new text begin (2) during the first two years of the State Quality Council, there must be at least three new text end 238.28new text begin members from the Region 10 stakeholders. As regional quality councils are formed under new text end 238.29new text begin subdivision 4, each regional quality council shall appoint one member;new text end 238.30    new text begin (3) disability service providers;new text end 238.31    new text begin (4) disability advocacy groups; andnew text end 238.32    new text begin (5) county human services agencies and staff from the Departments of Human new text end 238.33new text begin Services and Health, and Ombudsman for Mental Health and Developmental Disabilities.new text end 238.34    new text begin (c) Members of the council who do not receive a salary or wages from an employer new text end 238.35new text begin for time spent on council duties may receive a per diem payment when performing council new text end 238.36new text begin duties and functions.new text end 239.1    new text begin (d) The State Quality Council shall:new text end 239.2    new text begin (1) assist the Departments of Human Services and Health in fulfilling federally new text end 239.3new text begin mandated obligations by monitoring disability service quality and quality assurance and new text end 239.4new text begin improvement practices in Minnesota; andnew text end 239.5    new text begin (2) establish state quality improvement priorities with methods for achieving results new text end 239.6new text begin and provide an annual report to the legislative committees with jurisdiction over policy new text end 239.7new text begin and funding of disability services on the outcomes, improvement priorities, and activities new text end 239.8new text begin undertaken by the commission during the previous state fiscal year.new text end 239.9    new text begin (e) The State Quality Council, in partnership with the commissioner, shall:new text end 239.10    new text begin (1) approve and direct implementation of the community-based, person-directed new text end 239.11new text begin system established in this section;new text end 239.12    new text begin (2) recommend an appropriate method of funding this system, and determine the new text end 239.13new text begin feasibility of the use of Medicaid, licensing fees, as well as other possible funding options;new text end 239.14    new text begin (3) approve measurable outcomes in the areas of health and safety, consumer new text end 239.15new text begin evaluation, education and training, providers, and systems;new text end 239.16    new text begin (4) establish variable licensure periods not to exceed three years based on outcomes new text end 239.17new text begin achieved; andnew text end 239.18    new text begin (5) in cooperation with the Quality Assurance Commission, design a transition plan new text end 239.19new text begin for licensed providers from Region 10 into the alternative licensing system by July 1, 2013.new text end 239.20    new text begin (f) The State Quality Council shall notify the commissioner of human services that a new text end 239.21new text begin facility, program, or service has been reviewed by quality assurance team members under new text end 239.22new text begin subdivision 4, paragraph (b), clause (13), and qualifies for a license.new text end 239.23    new text begin (g) The State Quality Council, in partnership with the commissioner, shall establish new text end 239.24new text begin an ongoing review process for the system. The review shall take into account the new text end 239.25new text begin comprehensive nature of the system which is designed to evaluate the broad spectrum of new text end 239.26new text begin licensed and unlicensed entities that provide services to persons with disabilities. The new text end 239.27new text begin review shall address efficiencies and effectiveness of the system.new text end 239.28    new text begin (h) The State Quality Council may recommend to the commissioner certain new text end 239.29new text begin variances from the standards governing licensure of programs for persons with disabilities new text end 239.30new text begin in order to improve the quality of services so long as the recommended variances do new text end 239.31new text begin not adversely affect the health or safety of persons being served or compromise the new text end 239.32new text begin qualifications of staff to provide services.new text end 239.33    new text begin (i) The safety standards, rights, or procedural protections referenced under new text end 239.34new text begin subdivision 2, paragraph (c), shall not be varied. The State Quality Council may make new text end 239.35new text begin recommendations to the commissioner or to the legislature in the report required under new text end 240.1new text begin paragraph (c) regarding alternatives or modifications to the safety standards, rights, or new text end 240.2new text begin procedural protections referenced under subdivision 2, paragraph (c).new text end 240.3    new text begin (j) The State Quality Council may hire staff to perform the duties assigned in this new text end 240.4new text begin subdivision.new text end 240.5    new text begin Subd. 4.new text end new text begin Regional quality councils.new text end new text begin (a) The commissioner shall establish, as new text end 240.6new text begin selected by the State Quality Council, regional quality councils of key stakeholders, new text end 240.7new text begin including regional representatives of:new text end 240.8    new text begin (1) disability service recipients and their family members;new text end 240.9    new text begin (2) disability service providers;new text end 240.10    new text begin (3) disability advocacy groups; andnew text end 240.11    new text begin (4) county human services agencies and staff from the Departments of Human new text end 240.12new text begin Services, and Health, and Ombudsman for Mental Health and Developmental Disabilities.new text end 240.13    new text begin (b) Each regional quality council shall:new text end 240.14    new text begin (1) direct and monitor the community-based, person-directed quality assurance new text end 240.15new text begin system in this section;new text end 240.16    new text begin (2) approve a training program for quality assurance team members under clause new text end 240.17new text begin (13);new text end 240.18    new text begin (3) review summary reports from quality assurance team reviews and make new text end 240.19new text begin recommendations to the State Quality Council regarding program licensure;new text end 240.20    new text begin (4) make recommendations to the State Quality Council regarding the system;new text end 240.21    new text begin (5) resolve complaints between the quality assurance teams, counties, providers, new text end 240.22new text begin persons receiving services, their families, and legal representatives;new text end 240.23    new text begin (6) analyze and review quality outcomes and critical incident data reporting new text end 240.24new text begin incidents of life safety concerns immediately to the Department of Human Services new text end 240.25new text begin licensing division;new text end 240.26    new text begin (7) provide information and training programs for persons with disabilities and their new text end 240.27new text begin families and legal representatives on service options and quality expectations;new text end 240.28    new text begin (8) disseminate information and resources developed to other regional quality new text end 240.29new text begin councils;new text end 240.30    new text begin (9) respond to state-level priorities;new text end 240.31    new text begin (10) establish regional priorities for quality improvement;new text end 240.32    new text begin (11) submit an annual report to the State Quality Council on the status, outcomes, new text end 240.33new text begin improvement priorities, and activities in the region;new text end 240.34    new text begin (12) choose a representative to participate on the State Quality Council and assume new text end 240.35new text begin other responsibilities consistent with the priorities of the State Quality Council; andnew text end 241.1    new text begin (13) recruit, train, and assign duties to members of quality assurance teams, taking new text end 241.2new text begin into account the size of the service provider, the number of services to be reviewed, new text end 241.3new text begin the skills necessary for the team members to complete the process, and ensure that no new text end 241.4new text begin team member has a financial, personal, or family relationship with the facility, program, new text end 241.5new text begin or service being reviewed or with anyone served at the facility, program, or service. new text end 241.6new text begin Quality assurance teams must be comprised of county staff, persons receiving services new text end 241.7new text begin or the person's families, legal representatives, members of advocacy organizations, new text end 241.8new text begin providers, and other involved community members. Team members must complete new text end 241.9new text begin the training program approved by the regional quality council and must demonstrate new text end 241.10new text begin performance-based competency. Team members may be paid a per diem and reimbursed new text end 241.11new text begin for expenses related to their participation in the quality assurance process.new text end 241.12    new text begin (c) The commissioner shall monitor the safety standards, rights, and procedural new text end 241.13new text begin protections for the monitoring of psychotropic medications and those identified under new text end 241.14new text begin sections 245.825; 245.91 to 245.97; 245A.09, subdivision 2, paragraph (c), clauses (2) new text end 241.15new text begin and (5); 245A.12; 245A.13; 252.41, subdivision 9; 256B.092, subdivision 1b, clause new text end 241.16new text begin (7); 626.556; and 626.557.new text end 241.17    new text begin (d) The regional quality councils may hire staff to perform the duties assigned in new text end 241.18new text begin this subdivision.new text end 241.19    new text begin (e) The regional quality councils may charge fees for their services.new text end 241.20    new text begin (f) The quality assurance process undertaken by a regional quality council consists of new text end 241.21new text begin an evaluation by a quality assurance team of the facility, program, or service. The process new text end 241.22new text begin must include an evaluation of a random sample of persons served. The sample must be new text end 241.23new text begin representative of each service provided. The sample size must be at least five percent but new text end 241.24new text begin not less than two persons served. All persons must be given the opportunity to be included new text end 241.25new text begin in the quality assurance process in addition to those chosen for the random sample.new text end 241.26    new text begin (g) A facility, program, or service may contest a licensing decision of the regional new text end 241.27new text begin quality council as permitted under chapter 245A.new text end 241.28    new text begin Subd. 5.new text end new text begin Annual survey of service recipients.new text end new text begin The commissioner, in consultation new text end 241.29new text begin with the State Quality Council, shall conduct an annual independent statewide survey new text end 241.30new text begin of service recipients, randomly selected, to determine the effectiveness and quality new text end 241.31new text begin of disability services. The survey must be consistent with the system performance new text end 241.32new text begin expectations of the Centers for Medicare and Medicaid Services (CMS) Quality new text end 241.33new text begin Framework. The survey must analyze whether desired outcomes for persons with different new text end 241.34new text begin demographic, diagnostic, health, and functional needs, who are receiving different types new text end 241.35new text begin of services in different settings and with different costs, have been achieved. Annual new text end 242.1new text begin statewide and regional reports of the results must be published and used to assist regions, new text end 242.2new text begin counties, and providers to plan and measure the impact of quality improvement activities.new text end 242.3    new text begin Subd. 6.new text end new text begin Mandated reporters.new text end new text begin Members of the State Quality Council under new text end 242.4new text begin subdivision 3, the regional quality councils under subdivision 4, and quality assurance new text end 242.5new text begin team members under subdivision 4, paragraph (b), clause (13), are mandated reporters as new text end 242.6new text begin defined in sections 626.556, subdivision 3, and 626.5572, subdivision 16.new text end 242.7new text begin EFFECTIVE DATE.new text end new text begin (a) Subdivisions 1 to 6 are effective July 1, 2011.new text end 242.8    new text begin (b) The jurisdictions of the regional quality councils in subdivision 4 must be new text end 242.9new text begin defined, with implementation dates, by July 1, 2012. During the biennium beginning July new text end 242.10new text begin 1, 2011, the Quality Assurance Commission shall continue to implement the alternative new text end 242.11new text begin licensing system under this section.new text end 242.12    Sec. 30. Minnesota Statutes 2010, section 256B.19, is amended by adding a 242.13subdivision to read: 242.14    new text begin Subd. 2d.new text end new text begin Obligation of local agency to process medical assistance applications new text end 242.15new text begin within established timelines.new text end new text begin (a) Except as provided in paragraph (b), when an individual new text end 242.16new text begin submits an application for medical assistance and the applicant's eligibility is based on new text end 242.17new text begin disability or on being age 65 or older, the county must determine the applicant's eligibility new text end 242.18new text begin and mail a notice of its decision to the applicant within:new text end 242.19new text begin (1) 60 days from the date of the application for an individual whose eligibility new text end 242.20new text begin is based on disability; ornew text end 242.21new text begin (2) 45 days from the date of the application for an individual whose eligibility is new text end 242.22new text begin based on being age 65 or older.new text end 242.23new text begin (b) The county must determine eligibility and mail a notice of its decision within the new text end 242.24new text begin time frames stated in paragraph (a), except in the following circumstances: new text end 242.25new text begin (1) the county cannot make a determination because, despite reasonable efforts by new text end 242.26new text begin the county to communicate what is required, the applicant or an examining physician new text end 242.27new text begin delays or fails to take a required action; or new text end 242.28new text begin (2) there is an administrative or other emergency beyond the county's control. For new text end 242.29new text begin purposes of this clause, a staffing shortage does not constitute an emergency beyond new text end 242.30new text begin the county's control.new text end 242.31new text begin For the events in either clause (1) or (2), the county must document in the applicant's new text end 242.32new text begin case record the reason for delaying beyond the established time frames. new text end 242.33new text begin (c) The county must not use the time frames established in paragraph (a) as a waiting new text end 242.34new text begin period before determining eligibility or as a reason for denying eligibility because it has new text end 242.35new text begin not determined eligibility within the established time frames.new text end 243.1new text begin (d) Effective July 1, 2011, unless one of the exceptions listed under paragraph (b) new text end 243.2new text begin applies, if a county fails to comply with paragraph (a) and the applicant ultimately is new text end 243.3new text begin determined to be eligible for medical assistance, the county is responsible for the entire new text end 243.4new text begin cost of medical assistance services provided to the applicant by a nursing facility and not new text end 243.5new text begin paid for by federal funds, from and including the first date of eligibility through the date new text end 243.6new text begin on which the county mails written notice of its decision on the application. The applicable new text end 243.7new text begin facility will bill and receive payment directly from the commissioner in customary new text end 243.8new text begin fashion, and the commissioner shall deduct any obligation incurred under this paragraph new text end 243.9new text begin from the amount due to the local agency under subdivision 1. new text end 243.10new text begin (e) This subdivision supersedes subdivision 1, clause (2), if both apply to an new text end 243.11new text begin applicant.new text end 243.12    Sec. 31. Minnesota Statutes 2010, section 256B.431, subdivision 2r, is amended to 243.13read: 243.14    Subd. 2r. Payment restrictions on leave days. new text begin (a) new text end Effective July 1, 1993, the 243.15commissioner shall limit payment for leave days in a nursing facility to 79 percent of that 243.16nursing facility's total payment rate for the involved resident. 243.17new text begin (b) new text end For services rendered on or after July 1, 2003, for facilities reimbursed under this 243.18section or section 256B.434, the commissioner shall limit payment for leave days in a 243.19nursing facility to 60 percent of that nursing facility's total payment rate for the involved 243.20resident. 243.21new text begin (c) For services rendered on or after July 1, 2011, for facilities reimbursed under new text end 243.22new text begin this chapter, the commissioner shall limit payment for leave days in a nursing facility new text end 243.23new text begin to 30 percent of that nursing facility's total payment rate for the involved resident, and new text end 243.24new text begin shall allow this payment only when the occupancy of the nursing facility, inclusive of new text end 243.25new text begin bed hold days, is equal to or greater than 96 percent, notwithstanding Minnesota Rules, new text end 243.26new text begin part 9505.0415.new text end 243.27    Sec. 32. Minnesota Statutes 2010, section 256B.431, is amended by adding a 243.28subdivision to read: 243.29    new text begin Subd. 44.new text end new text begin Property rate increase for a facility in Bloomington effective new text end 243.30new text begin November 1, 2010.new text end new text begin Notwithstanding any other law to the contrary, money available for new text end 243.31new text begin moratorium projects under section 144A.073, subdivision 11, shall be used, effective new text end 243.32new text begin November 1, 2010, to fund an approved moratorium exception project for a nursing new text end 243.33new text begin facility in Bloomington licensed for 137 beds as of November 1, 2010, up to a total new text end 243.34new text begin property rate adjustment of $19.33.new text end 244.1    Sec. 33. Minnesota Statutes 2010, section 256B.434, subdivision 4, is amended to read: 244.2    Subd. 4. Alternate rates for nursing facilities. (a) For nursing facilities which 244.3have their payment rates determined under this section rather than section 256B.431, the 244.4commissioner shall establish a rate under this subdivision. The nursing facility must enter 244.5into a written contract with the commissioner. 244.6    (b) A nursing facility's case mix payment rate for the first rate year of a facility's 244.7contract under this section is the payment rate the facility would have received under 244.8section 256B.431. 244.9    (c) A nursing facility's case mix payment rates for the second and subsequent years 244.10of a facility's contract under this section are the previous rate year's contract payment 244.11rates plus an inflation adjustment and, for facilities reimbursed under this section or 244.12section 256B.431, an adjustment to include the cost of any increase in Health Department 244.13licensing fees for the facility taking effect on or after July 1, 2001. The index for the 244.14inflation adjustment must be based on the change in the Consumer Price Index-All Items 244.15(United States City average) (CPI-U) forecasted by the commissioner of management and 244.16budget's national economic consultant, as forecasted in the fourth quarter of the calendar 244.17year preceding the rate year. The inflation adjustment must be based on the 12-month 244.18period from the midpoint of the previous rate year to the midpoint of the rate year for 244.19which the rate is being determined. For the rate years beginning on July 1, 1999, July 1, 244.202000, July 1, 2001, July 1, 2002, July 1, 2003, July 1, 2004, July 1, 2005, July 1, 2006, 244.21July 1, 2007, July 1, 2008, October 1, 2009, new text begin and new text end October 1, 2010, October 1, 2011, and 244.22October 1, 2012. this paragraph shall apply only to the property-related payment rate, 244.23except that adjustments to include the cost of any increase in Health Department licensing 244.24fees taking effect on or after July 1, 2001, shall be provided.new text begin For the rate years beginning new text end 244.25new text begin on October 1, 2011, and October 1, 2012, the rate adjustment under this paragraph shall new text end 244.26new text begin be suspended.new text end Beginning in 2005, adjustment to the property payment rate under this 244.27section and section 256B.431 shall be effective on October 1. In determining the amount 244.28of the property-related payment rate adjustment under this paragraph, the commissioner 244.29shall determine the proportion of the facility's rates that are property-related based on the 244.30facility's most recent cost report. 244.31    (d) The commissioner shall develop additional incentive-based payments of up to 244.32five percent above a facility's operating payment rate for achieving outcomes specified 244.33in a contract. The commissioner may solicit contract amendments and implement those 244.34which, on a competitive basis, best meet the state's policy objectives. The commissioner 244.35shall limit the amount of any incentive payment and the number of contract amendments 244.36under this paragraph to operate the incentive payments within funds appropriated for this 245.1purpose. The contract amendments may specify various levels of payment for various 245.2levels of performance. Incentive payments to facilities under this paragraph may be in the 245.3form of time-limited rate adjustments or onetime supplemental payments. In establishing 245.4the specified outcomes and related criteria, the commissioner shall consider the following 245.5state policy objectives: 245.6    (1) successful diversion or discharge of residents to the residents' prior home or other 245.7community-based alternatives; 245.8    (2) adoption of new technology to improve quality or efficiency; 245.9    (3) improved quality as measured in the Nursing Home Report Card; 245.10    (4) reduced acute care costs; and 245.11    (5) any additional outcomes proposed by a nursing facility that the commissioner 245.12finds desirable. 245.13    (e) Notwithstanding the threshold in section 256B.431, subdivision 16, facilities that 245.14take action to come into compliance with existing or pending requirements of the life 245.15safety code provisions or federal regulations governing sprinkler systems must receive 245.16reimbursement for the costs associated with compliance if all of the following conditions 245.17are met: 245.18    (1) the expenses associated with compliance occurred on or after January 1, 2005, 245.19and before December 31, 2008; 245.20    (2) the costs were not otherwise reimbursed under subdivision 4f or section 245.21144A.071 or 144A.073; and 245.22    (3) the total allowable costs reported under this paragraph are less than the minimum 245.23threshold established under section 256B.431, subdivision 15, paragraph (e), and 245.24subdivision 16. 245.25The commissioner shall use money appropriated for this purpose to provide to qualifying 245.26nursing facilities a rate adjustment beginning October 1, 2007, and ending September 30, 245.272008. Nursing facilities that have spent money or anticipate the need to spend money 245.28to satisfy the most recent life safety code requirements by (1) installing a sprinkler 245.29system or (2) replacing all or portions of an existing sprinkler system may submit to the 245.30commissioner by June 30, 2007, on a form provided by the commissioner the actual 245.31costs of a completed project or the estimated costs, based on a project bid, of a planned 245.32project. The commissioner shall calculate a rate adjustment equal to the allowable 245.33costs of the project divided by the resident days reported for the report year ending 245.34September 30, 2006. If the costs from all projects exceed the appropriation for this 245.35purpose, the commissioner shall allocate the money appropriated on a pro rata basis 245.36to the qualifying facilities by reducing the rate adjustment determined for each facility 246.1by an equal percentage. Facilities that used estimated costs when requesting the rate 246.2adjustment shall report to the commissioner by January 31, 2009, on the use of this 246.3money on a form provided by the commissioner. If the nursing facility fails to provide 246.4the report, the commissioner shall recoup the money paid to the facility for this purpose. 246.5If the facility reports expenditures allowable under this subdivision that are less than 246.6the amount received in the facility's annualized rate adjustment, the commissioner shall 246.7recoup the difference. 246.8    Sec. 34. Minnesota Statutes 2010, section 256B.437, subdivision 6, is amended to read: 246.9    Subd. 6. Planned closure rate adjustment. (a) The commissioner of human 246.10services shall calculate the amount of the planned closure rate adjustment available under 246.11subdivision 3, paragraph (b), for up to 5,140 beds according to clauses (1) to (4): 246.12(1) the amount available is the net reduction of nursing facility beds multiplied 246.13by $2,080; 246.14(2) the total number of beds in the nursing facility or facilities receiving the planned 246.15closure rate adjustment must be identified; 246.16(3) capacity days are determined by multiplying the number determined under 246.17clause (2) by 365; and 246.18(4) the planned closure rate adjustment is the amount available in clause (1), divided 246.19by capacity days determined under clause (3). 246.20(b) A planned closure rate adjustment under this section is effective on the first day 246.21of the month following completion of closure of the facility designated for closure in the 246.22application and becomes part of the nursing facility's total operating payment rate. 246.23(c) Applicants may use the planned closure rate adjustment to allow for a property 246.24payment for a new nursing facility or an addition to an existing nursing facility or as an 246.25operating payment rate adjustment. Applications approved under this subdivision are 246.26exempt from other requirements for moratorium exceptions under section 144A.073, 246.27subdivisions 2 and 3. 246.28(d) Upon the request of a closing facility, the commissioner must allow the facility a 246.29closure rate adjustment as provided under section 144A.161, subdivision 10. 246.30(e) A facility that has received a planned closure rate adjustment may reassign it 246.31to another facility that is under the same ownership at any time within three years of its 246.32effective date. The amount of the adjustment shall be computed according to paragraph (a). 246.33(f) If the per bed dollar amount specified in paragraph (a), clause (1), is increased, 246.34the commissioner shall recalculate planned closure rate adjustments for facilities that 246.35delicense beds under this section on or after July 1, 2001, to reflect the increase in the per 247.1bed dollar amount. The recalculated planned closure rate adjustment shall be effective 247.2from the date the per bed dollar amount is increased. 247.3(g) For planned closures approved after June 30, 2009, the commissioner of human 247.4services shall calculate the amount of the planned closure rate adjustment available under 247.5subdivision 3, paragraph (b), according to paragraph (a), clauses (1) to (4). 247.6new text begin (h) Beginning July 16, 2011, the commissioner shall no longer approve planned new text end 247.7new text begin closure rate adjustments under this subdivision.new text end 247.8    Sec. 35. Minnesota Statutes 2010, section 256B.441, is amended by adding a 247.9subdivision to read: 247.10    new text begin Subd. 60.new text end new text begin Rate increase for low-rate facilities.new text end new text begin (a) Effective October 1, 2011, new text end 247.11new text begin the commissioner shall adjust the operating payment rates of a nursing facility whose new text end 247.12new text begin operating payment rate on September 30, 2011, is greater than the 95th percentile of all new text end 247.13new text begin nursing facilities operating payment rates. The commissioner shall:new text end 247.14new text begin (1) array all operating payment rates in effect on September 30, 2011, at a case-mix new text end 247.15new text begin weight equal to 1.00 (DDF) from lowest to highest;new text end 247.16new text begin (2) remove from the array any nursing facility determined by the commissioner to new text end 247.17new text begin be providing specialized care, determined in accordance with criteria in subdivision 51a, new text end 247.18new text begin paragraph (b), and any facilities receiving a rate increase under paragraph (c), clause (1);new text end 247.19new text begin (3) determine the 95th percentile of the array in clause (1);new text end 247.20new text begin (4) compute a reduction amount not to exceed three percent, if a facility's amount new text end 247.21new text begin in clause (1) is greater than the amount computed in clause (3) by subtracting a facility's new text end 247.22new text begin DDF rate in clause (1) from the amount computed in clause (3);new text end 247.23new text begin (5) compute the portion of each facility's DDF operating payment rate that is the new text end 247.24new text begin direct care per diem based on the rates in effect on September 30, 2011; andnew text end 247.25new text begin (6) determine the change for all other case-mix levels, by multiplying the amount in new text end 247.26new text begin clause (4) by the percentage in clause (5) and by the corresponding case-mix weight for new text end 247.27new text begin each care level. Add to this product the non-direct care per diem portion of the amount new text end 247.28new text begin in clause (4).new text end 247.29new text begin (b) The total amount to be saved by the rate reductions will be computed. The new text end 247.30new text begin commissioner shall:new text end 247.31new text begin (1) for each facility receiving a rate change in paragraph (a), multiply each case-mix new text end 247.32new text begin level's rate change in paragraph (a), clause (6), by the corresponding case-mix resident new text end 247.33new text begin days from the most recent cost report that has been desk audited; andnew text end 247.34new text begin (2) sum all the products computed in clause (1).new text end 248.1new text begin (c) The amount of total payment reductions computed in paragraph (b) shall be new text end 248.2new text begin distributed to the facilities with the lowest DDF operating payment rates determined in new text end 248.3new text begin paragraph (a), clause (1). The commissioner shall:new text end 248.4new text begin (1) for nursing facilities located no more than one-quarter mile from a peer group new text end 248.5new text begin with higher limits under either subdivision 50 or 51, give an operating rate adjustment. new text end 248.6new text begin The operating payment rates of a lower-limit peer group facility must be adjusted to be new text end 248.7new text begin equal to those of the nearest facility in a higher-limit peer group if that facility's RUG rate new text end 248.8new text begin with a weight of 1.00 is higher than the lower-limit peer group facility. Peer groups are new text end 248.9new text begin those defined in subdivision 30. The nearest facility must be determined by the most new text end 248.10new text begin direct driving route;new text end 248.11new text begin (2) start with the facility or facilities with the lowest DDF operating payment rate new text end 248.12new text begin and compute the amount of a rate adjustment needed to make the DDF rate equal to the new text end 248.13new text begin DDF of the facility directly below it in the array;new text end 248.14new text begin (3) compute the rate increases for the other case-mix levels using the amount new text end 248.15new text begin computed in clause (2), and the process stated in paragraph (a), clauses (5) and (6);new text end 248.16new text begin (4) compute the total amount the lowest facilities will receive using the process new text end 248.17new text begin described in paragraph (b);new text end 248.18new text begin (5) compute the running total to be spent at all facilities receiving an increase under new text end 248.19new text begin this paragraph by summing each facility's amount computed in clause (4); and new text end 248.20new text begin (6) repeat the process in clauses (2) to (5) as long as the amount in clause (5) does new text end 248.21new text begin not exceed the amount in paragraph (b), clause (2). In no case shall the DDF operating new text end 248.22new text begin payment rate increase determined in clauses (2) to (6) exceed two percent.new text end 248.23    Sec. 36. Minnesota Statutes 2010, section 256B.48, subdivision 1, is amended to read: 248.24    Subdivision 1. Prohibited practices. A nursing facility is not eligible to receive 248.25medical assistance payments unless it refrains from all of the following: 248.26(a) Charging private paying residents rates for similar services which exceed those 248.27which are approved by the state agency for medical assistance recipients as determined by 248.28the prospective desk audit rate, except under the following circumstances: 248.29new text begin (1)new text end the nursing facility maynew text begin :new text end 248.30(1) new text begin (i) new text end charge private paying residents a higher rate for a private room,new text begin ;new text end and 248.31(2) new text begin (ii) new text end charge for special services which are not included in the daily rate if medical 248.32assistance residents are charged separately at the same rate for the same services in 248.33addition to the daily rate paid by the commissioner.new text begin ;new text end 249.1new text begin (2) effective July 1, 2011, through September 30, 2012, nursing facilities may charge new text end 249.2new text begin private paying residents rates up to two percent higher than the allowable payment rate new text end 249.3new text begin determined by the commissioner for the RUGS group currently assigned to the resident;new text end 249.4new text begin (3) effective October 1, 2012, through September 30, 2013, nursing facilities new text end 249.5new text begin may charge private paying residents rates up to four percent higher than the allowable new text end 249.6new text begin payment rate determined by the commissioner for the RUGS group currently assigned new text end 249.7new text begin to the resident;new text end 249.8new text begin (4) effective October 1, 2013, through September 30, 2014, nursing facilities may new text end 249.9new text begin charge private paying residents rates up to six percent higher than the allowable payment new text end 249.10new text begin rate determined by the commissioner for the RUGS group currently assigned to the new text end 249.11new text begin resident;new text end 249.12new text begin (5) effective October 1, 2014, nursing facilities may charge private paying new text end 249.13new text begin residents up to eight percent higher than the allowable payment rate determined by the new text end 249.14new text begin commissioner for the RUGS group currently assigned to the resident; andnew text end 249.15new text begin (6) the higher private pay charges allowed in this paragraph shall be limited to actual new text end 249.16new text begin costs per resident day, as determined by the commissioner, based on data provided in the new text end 249.17new text begin statistical and cost report in section 256B.441.new text end 249.18new text begin Nothing in this section precludes a nursing facility from charging a rate allowable new text end 249.19new text begin under the facility's single room election option under Minnesota Rules, part 9549.0060, new text end 249.20new text begin subpart 11. new text end Services covered by the payment rate must be the same regardless of payment 249.21source. Special services, if offered, must be available to all residents in all areas of the 249.22nursing facility and charged separately at the same rate. Residents are free to select 249.23or decline special services. Special services must not include services which must be 249.24provided by the nursing facility in order to comply with licensure or certification standards 249.25and that if not provided would result in a deficiency or violation by the nursing facility. 249.26Services beyond those required to comply with licensure or certification standards must 249.27not be charged separately as a special service if they were included in the payment rate for 249.28the previous reporting year. A nursing facility that charges a private paying resident a rate 249.29in violation of this clause is subject to an action by the state of Minnesota or any of its 249.30subdivisions or agencies for civil damages. A private paying resident or the resident's legal 249.31representative has a cause of action for civil damages against a nursing facility that charges 249.32the resident rates in violation of this clause. The damages awarded shall include three 249.33times the payments that result from the violation, together with costs and disbursements, 249.34including reasonable attorneys' fees or their equivalent. A private paying resident or the 249.35resident's legal representative, the state, subdivision or agency, or a nursing facility may 249.36request a hearing to determine the allowed rate or rates at issue in the cause of action. 250.1Within 15 calendar days after receiving a request for such a hearing, the commissioner 250.2shall request assignment of an administrative law judge under sections 14.48 to 14.56 to 250.3conduct the hearing as soon as possible or according to agreement by the parties. The 250.4administrative law judge shall issue a report within 15 calendar days following the close 250.5of the hearing. The prohibition set forth in this clause shall not apply to facilities licensed 250.6as boarding care facilities which are not certified as skilled or intermediate care facilities 250.7level I or II for reimbursement through medical assistance. 250.8(b)(1) Charging, soliciting, accepting, or receiving from an applicant for admission 250.9to the facility, or from anyone acting in behalf of the applicant, as a condition of 250.10admission, expediting the admission, or as a requirement for the individual's continued 250.11stay, any fee, deposit, gift, money, donation, or other consideration not otherwise required 250.12as payment under the state plannew text begin . For residents on medical assistance, medical assistance new text end 250.13new text begin payment according to the state plan must be accepted as payment in full for continued new text end 250.14new text begin stay, except where otherwise provided for under statutenew text end ; 250.15(2) requiring an individual, or anyone acting in behalf of the individual, to loan 250.16any money to the nursing facility; 250.17(3) requiring an individual, or anyone acting in behalf of the individual, to promise 250.18to leave all or part of the individual's estate to the facility; or 250.19(4) requiring a third-party guarantee of payment to the facility as a condition of 250.20admission, expedited admission, or continued stay in the facility. 250.21Nothing in this paragraph would prohibit discharge for nonpayment of services in 250.22accordance with state and federal regulations. 250.23(c) Requiring any resident of the nursing facility to utilize a vendor of health care 250.24services chosen by the nursing facility. A nursing facility may require a resident to use 250.25pharmacies that utilize unit dose packing systems approved by the Minnesota Board of 250.26Pharmacy, and may require a resident to use pharmacies that are able to meet the federal 250.27regulations for safe and timely administration of medications such as systems with specific 250.28number of doses, prompt delivery of medications, or access to medications on a 24-hour 250.29basis. Notwithstanding the provisions of this paragraph, nursing facilities shall not restrict 250.30a resident's choice of pharmacy because the pharmacy utilizes a specific system of unit 250.31dose drug packing. 250.32(d) Providing differential treatment on the basis of status with regard to public 250.33assistance. 250.34(e) Discriminating in admissions, services offered, or room assignment on the 250.35basis of status with regard to public assistance or refusal to purchase special services. 251.1new text begin Discrimination in new text end admissions discriminationnew text begin , services offered, or room assignmentnew text end shall 251.2include, but is not limited to: 251.3(1) basing admissions decisions upon assurance by the applicant to the nursing 251.4facility, or the applicant's guardian or conservator, that the applicant is neither eligible for 251.5nor will seek new text begin information or assurances regarding current or future eligibility for new text end public 251.6assistance for payment of nursing facility care costs; and 251.7(2) engaging in preferential selection from waiting lists based on an applicant's 251.8ability to pay privately or an applicant's refusal to pay for a special service. 251.9The collection and use by a nursing facility of financial information of any applicant 251.10pursuant to a preadmission screening program established by law shall not raise an 251.11inference that the nursing facility is utilizing that information for any purpose prohibited 251.12by this paragraph. 251.13(f) Requiring any vendor of medical care as defined by section 256B.02, subdivision 251.147 , who is reimbursed by medical assistance under a separate fee schedule, to pay any 251.15amount based on utilization or service levels or any portion of the vendor's fee to the 251.16nursing facility except as payment for renting or leasing space or equipment or purchasing 251.17support services from the nursing facility as limited by section 256B.433. All agreements 251.18must be disclosed to the commissioner upon request of the commissioner. Nursing 251.19facilities and vendors of ancillary services that are found to be in violation of this provision 251.20shall each be subject to an action by the state of Minnesota or any of its subdivisions or 251.21agencies for treble civil damages on the portion of the fee in excess of that allowed by 251.22this provision and section 256B.433. Damages awarded must include three times the 251.23excess payments together with costs and disbursements including reasonable attorney's 251.24fees or their equivalent. 251.25(g) Refusing, for more than 24 hours, to accept a resident returning to the same 251.26bed or a bed certified for the same level of care, in accordance with a physician's order 251.27authorizing transfer, after receiving inpatient hospital services. 251.28new text begin (h) new text end For a period not to exceed 180 days, the commissioner may continue to make 251.29medical assistance payments to a nursing facility or boarding care home which is in 251.30violation of this section if extreme hardship to the residents would result. In these cases 251.31the commissioner shall issue an order requiring the nursing facility to correct the violation. 251.32The nursing facility shall have 20 days from its receipt of the order to correct the violation. 251.33If the violation is not corrected within the 20-day period the commissioner may reduce 251.34the payment rate to the nursing facility by up to 20 percent. The amount of the payment 251.35rate reduction shall be related to the severity of the violation and shall remain in effect 251.36until the violation is corrected. The nursing facility or boarding care home may appeal the 252.1commissioner's action pursuant to the provisions of chapter 14 pertaining to contested 252.2cases. An appeal shall be considered timely if written notice of appeal is received by the 252.3commissioner within 20 days of notice of the commissioner's proposed action. 252.4In the event that the commissioner determines that a nursing facility is not eligible 252.5for reimbursement for a resident who is eligible for medical assistance, the commissioner 252.6may authorize the nursing facility to receive reimbursement on a temporary basis until the 252.7resident can be relocated to a participating nursing facility. 252.8Certified beds in facilities which do not allow medical assistance intake on July 1, 252.91984, or after shall be deemed to be decertified for purposes of section 144A.071 only. 252.10    Sec. 37. Minnesota Statutes 2010, section 256B.49, subdivision 12, is amended to read: 252.11    Subd. 12. Informed choice. Persons who are determined likely to require the 252.12level of care provided in a nursing facility as determined under sections , 252.13subdivision 11, andnew text begin sectionnew text end 256B.0911, or new text begin a new text end hospital shall be informed of the home and 252.14community-based support alternatives to the provision of inpatient hospital services or 252.15nursing facility services. Each person must be given the choice of either institutional or 252.16home and community-based services using the provisions described in section 256B.77, 252.17subdivision 2 , paragraph (p). 252.18    Sec. 38. Minnesota Statutes 2010, section 256B.49, subdivision 13, is amended to read: 252.19    Subd. 13. Case management. (a) Each recipient of a home and community-based 252.20waiver new text begin under this section new text end shall be provided case management services new text begin according to new text end 252.21new text begin section 256B.092, subdivisions 1a, 1b, and 1e, new text end by qualified vendors as described in the 252.22federally approved waiver application. The case management service activities provided 252.23will include: 252.24    (1) assessing the needs of the individual within 20 working days of a recipient's 252.25request; 252.26    (2) developing the written individual service plan within ten working days after the 252.27assessment is completed; 252.28    (3) informing the recipient or the recipient's legal guardian or conservator of service 252.29options; 252.30    (4) assisting the recipient in the identification of potential service providers; 252.31    (5) assisting the recipient to access services; 252.32    (6) coordinating, evaluating, and monitoring of the services identified in the service 252.33plan; 252.34    (7) completing the annual reviews of the service plan; and 253.1    (8) informing the recipient or legal representative of the right to have assessments 253.2completed and service plans developed within specified time periods, and to appeal county 253.3action or inaction under section 256.045, subdivision 3, including the determination of 253.4nursing facility level of care. 253.5    (b) The case manager may delegate certain aspects of the case management service 253.6activities to another individual provided there is oversight by the case manager. The case 253.7manager may not delegate those aspects which require professional judgment including 253.8assessments, reassessments, and care plan development. 253.9new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012.new text end 253.10    Sec. 39. Minnesota Statutes 2010, section 256B.49, subdivision 14, is amended to read: 253.11    Subd. 14. Assessment and reassessment. (a) Assessments of each recipient's 253.12strengths, informal support systems, and need for services shall be completed within 20 253.13working days of the recipient's requestnew text begin as provided in section 256B.0911new text end . Reassessment 253.14of each recipient's strengths, support systems, and need for services shall be conducted 253.15at least every 12 months and at other times when there has been a significant change in 253.16the recipient's functioning. 253.17(b) There must be a determination that the client requires a hospital level of care or a 253.18nursing facility level of care as defined in section 144.0724, subdivision 11new text begin 256B.0911, new text end 253.19new text begin subdivision 4a, paragraph (d)new text end , at initial and subsequent assessments to initiate and 253.20maintain participation in the waiver program. 253.21(c) Regardless of other assessments identified in section 144.0724, subdivision 4, as 253.22appropriate to determine nursing facility level of care for purposes of medical assistance 253.23payment for nursing facility services, only face-to-face assessments conducted according 253.24to section 256B.0911, subdivisions 3a, 3b, and 4d, that result in a hospital level of care 253.25determination or a nursing facility level of care determination must be accepted for 253.26purposes of initial and ongoing access to waiver services payment. 253.27(d) Persons with developmental disabilities who apply for services under the nursing 253.28facility level waiver programs shall be screened for the appropriate level of care according 253.29to section 256B.092. 253.30(e) Recipients who are found eligible for home and community-based services under 253.31this section before their 65th birthday may remain eligible for these services after their 253.3265th birthday if they continue to meet all other eligibility factors. 253.33new text begin (f) The commissioner shall develop criteria to identify individuals whose level of new text end 253.34new text begin functioning is reasonably expected to improve and reassess these individuals every six new text end 253.35new text begin months. Individuals who meet these criteria must have a comprehensive transitional new text end 254.1new text begin service plan developed under subdivision 15, paragraphs (b) and (c). Counties, case new text end 254.2new text begin managers, and service providers are responsible for conducting these reassessments and new text end 254.3new text begin shall complete the reassessments out of existing funds.new text end 254.4new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012, except for paragraph new text end 254.5new text begin (f), which is effective July 1, 2013.new text end 254.6    Sec. 40. Minnesota Statutes 2010, section 256B.49, subdivision 15, is amended to read: 254.7    Subd. 15. Individualizednew text begin Coordinatednew text end servicenew text begin and supportnew text end plannew text begin ; comprehensive new text end 254.8new text begin transitional service plan; maintenance service plannew text end . (a) Each recipient of home and 254.9community-based waivered services shall be provided a copy of the writtennew text begin coordinatednew text end 254.10servicenew text begin and supportnew text end plan which:new text begin that complies with the requirements of section 256B.092, new text end 254.11new text begin subdivisions 1b and 1e.new text end 254.12(1) is developed and signed by the recipient within ten working days of the 254.13completion of the assessment; 254.14(2) meets the assessed needs of the recipient; 254.15(3) reasonably ensures the health and safety of the recipient; 254.16(4) promotes independence; 254.17(5) allows for services to be provided in the most integrated settings; and 254.18(6) provides for an informed choice, as defined in section 256B.77, subdivision 2, 254.19paragraph (p), of service and support providers. 254.20new text begin (b) In developing the comprehensive transitional service plan, the individual new text end 254.21new text begin receiving services, the case manager, and the guardian, if applicable, will identify new text end 254.22new text begin the transitional service plan fundamental service outcome and anticipated timeline to new text end 254.23new text begin achieve this outcome. Within the first 20 days following a recipient's request for an new text end 254.24new text begin assessment or reassessment, the transitional service planning team must be identified. A new text end 254.25new text begin team leader must be identified who will be responsible for assigning responsibility and new text end 254.26new text begin communicating with team members to ensure implementation of the transition plan and new text end 254.27new text begin ongoing assessment and communication process. The team leader should be an individual, new text end 254.28new text begin such as the case manager or guardian, who has the opportunity to follow the individual to new text end 254.29new text begin the next level of service.new text end 254.30new text begin Within ten days following an assessment, a comprehensive transitional service plan new text end 254.31new text begin must be developed incorporating elements of a comprehensive functional assessment and new text end 254.32new text begin including short-term measurable outcomes and timelines for achievement of and reporting new text end 254.33new text begin on these outcomes. Functional milestones must also be identified and reported according new text end 254.34new text begin to the timelines agreed upon by the transitional service planning team. In addition, the new text end 254.35new text begin comprehensive transitional service plan must identify additional supports that may assist new text end 255.1new text begin in the achievement of the fundamental service outcome such as the development of greater new text end 255.2new text begin natural community support, increased collaboration among agencies, and technological new text end 255.3new text begin supports.new text end 255.4new text begin The timelines for reporting on functional milestones will prompt a reassessment of new text end 255.5new text begin services provided, the units of services, rates, and appropriate service providers. It is new text end 255.6new text begin the responsibility of the transitional service planning team leader to review functional new text end 255.7new text begin milestone reporting to determine if the milestones are consistent with observable skills new text end 255.8new text begin and that milestone achievement prompts any needed changes to the comprehensive new text end 255.9new text begin transitional service plan.new text end 255.10new text begin For those whose fundamental transitional service outcome involves the need to new text end 255.11new text begin procure housing, a plan for the individual to seek the resources necessary to secure new text end 255.12new text begin the least restrictive housing possible should be incorporated into the plan, including new text end 255.13new text begin employment and public supports such as housing access and shelter needy funding.new text end 255.14new text begin (c) Counties and other agencies responsible for funding community placement and new text end 255.15new text begin ongoing community supportive services are responsible for the implementation of the new text end 255.16new text begin comprehensive transitional service plans. Oversight responsibilities include both ensuring new text end 255.17new text begin effective transitional service delivery and efficient utilization of funding resources.new text end 255.18new text begin (d) Following one year of transitional services, the transitional services planning new text end 255.19new text begin team will make a determination as to whether or not the individual receiving services new text end 255.20new text begin requires the current level of continuous and consistent support in order to maintain the new text end 255.21new text begin individual's current level of functioning. Individuals who move from a transitional to a new text end 255.22new text begin maintenance service plan must be reassessed to determine if the individual would benefit new text end 255.23new text begin from a transitional service plan on at least an annual basis. This assessment should new text end 255.24new text begin consider any changes to technological or natural community supports.new text end 255.25(b)new text begin (e)new text end When a county is evaluating denials, reductions, or terminations of home 255.26and community-based services under section 256B.49 for an individual, the case manager 255.27shall offer to meet with the individual or the individual's guardian in order to discuss the 255.28prioritization of service needs within the individualized service plannew text begin , comprehensive new text end 255.29new text begin transitional service plan, or maintenance service plannew text end . The reduction in the authorized 255.30services for an individual due to changes in funding for waivered services may not exceed 255.31the amount needed to ensure medically necessary services to meet the individual's health, 255.32safety, and welfare. 255.33new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2012, except for new text end 255.34new text begin paragraphs (b), (c), and (d), which are effective July 1, 2013.new text end 256.1    Sec. 41. Minnesota Statutes 2010, section 256B.5012, is amended by adding a 256.2subdivision to read: 256.3    new text begin Subd. 9.new text end new text begin ICF/MR rate increase.new text end new text begin Effective July 1, 2011, the commissioner shall new text end 256.4new text begin increase the daily rate to $138.23 at an intermediate care facility for the developmentally new text end 256.5new text begin disabled located in Clearwater County and classified as a class A facility with 15 beds.new text end 256.6new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2011.new text end 256.7    Sec. 42. Minnesota Statutes 2010, section 256B.5012, is amended by adding a 256.8subdivision to read: 256.9    new text begin Subd. 10.new text end new text begin ICF/MR rate adjustment.new text end new text begin For each facility reimbursed under this new text end 256.10new text begin section, except for a facility located in Clearwater County and classified as a class A new text end 256.11new text begin facility with 15 beds, the commissioner shall decrease operating payment rates equal to ... new text end 256.12new text begin percent of the operating payment rates in effect on June 30, 2011. For each facility, the new text end 256.13new text begin commissioner shall apply the rate reduction, based on occupied beds, using the percentage new text end 256.14new text begin specified in this subdivision multiplied by the total payment rate, including the variable rate new text end 256.15new text begin but excluding the property-related payment rate, in effect on the preceding date. The total new text end 256.16new text begin rate reduction shall include the adjustment provided in section 256B.501, subdivision 12.new text end 256.17    Sec. 43. Minnesota Statutes 2010, section 256G.02, subdivision 6, is amended to read: 256.18    Subd. 6. Excluded time. "Excluded time" means: 256.19(a) any period an applicant spends in a hospital, sanitarium, nursing home, shelter 256.20other than an emergency shelter, halfway house, foster home, semi-independent living 256.21domicile or services program, residential facility offering care, board and lodging facility 256.22or other institution for the hospitalization or care of human beings, as defined in section 256.23144.50 , 144A.01, or 245A.02, subdivision 14; maternity home, battered women's shelter, 256.24or correctional facility; or any facility based on an emergency hold under sections 256.25253B.05, subdivisions 1 and 2 , and 253B.07, subdivision 6; 256.26(b) any period an applicant spends on a placement basis in a training and habilitation 256.27program, including a rehabilitation facility or work or employment program as defined 256.28in section 268A.01; or receiving personal care assistance services pursuant to section 256.29; semi-independent living services provided under section 252.275, and 256.30Minnesota Rules, parts 9525.0500 to 9525.0660; day training and habilitation programs 256.31and assisted living services; and 256.32(c) any placement for a person with an indeterminate commitment, including 256.33independent living. 257.1new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2011.new text end 257.2    Sec. 44. Laws 2009, chapter 79, article 8, section 4, the effective date, as amended by 257.3Laws 2010, First Special Session chapter 1, article 24, section 12, is amended to read: 257.4EFFECTIVE DATE.Thenew text begin Thisnew text end section is effective July 1, 2011new text begin on or after January new text end 257.5new text begin 1, 2014, for individuals age 21 and older, and on or after October 1, 2019, for individuals new text end 257.6new text begin under age 21new text end . 257.7    Sec. 45. Laws 2009, chapter 79, article 8, section 51, the effective date, as amended by 257.8Laws 2010, First Special Session chapter 1, article 17, section 14, is amended to read: 257.9EFFECTIVE DATE.This section is effective July 1, 2011new text begin January 1, 2014new text end . 257.10    Sec. 46. Laws 2009, chapter 79, article 13, section 3, subdivision 8, as amended by 257.11Laws 2009, chapter 173, article 2, section 1, subdivision 8, and Laws 2010, First Special 257.12Session chapter 1, article 15, section 5, and article 25, section 16, is amended to read: 257.13 Subd. 8.Continuing Care Grants
257.14The amounts that may be spent from the 257.15appropriation for each purpose are as follows: 257.16 (a) Aging and Adult Services Grants 13,499,000 15,805,000
257.17Base Adjustment. The general fund base is 257.18increased by $5,751,000 in fiscal year 2012 257.19and $6,705,000 in fiscal year 2013. 257.20Information and Assistance 257.21Reimbursement. Federal administrative 257.22reimbursement obtained from information 257.23and assistance services provided by the 257.24Senior LinkAge or Disability Linkage lines 257.25to people who are identified as eligible for 257.26medical assistance shall be appropriated to 257.27the commissioner for this activity. 257.28Community Service Development Grant 257.29Reduction. Funding for community service 257.30development grants must be reduced by 257.31$260,000 for fiscal year 2010; $284,000 in 258.1fiscal year 2011; $43,000 in fiscal year 2012; 258.2and $43,000 in fiscal year 2013. Base level 258.3funding shall be restored in fiscal year 2014. 258.4Community Service Development Grant 258.5Community Initiative. Funding for 258.6community service development grants shall 258.7be used to offset the cost of aging support 258.8grants. Base level funding shall be restored 258.9in fiscal year 2014. 258.10Senior Nutrition Use of Federal Funds. 258.11For fiscal year 2010, general fund grants 258.12for home-delivered meals and congregate 258.13dining shall be reduced by $500,000. The 258.14commissioner must replace these general 258.15fund reductions with equal amounts from 258.16federal funding for senior nutrition from the 258.17American Recovery and Reinvestment Act 258.18of 2009. 258.19 (b) Alternative Care Grants 50,234,000 48,576,000
258.20Base Adjustment. The general fund base is 258.21decreased by $3,598,000 in fiscal year 2012 258.22and $3,470,000 in fiscal year 2013. 258.23Alternative Care Transfer. Any money 258.24allocated to the alternative care program that 258.25is not spent for the purposes indicated does 258.26not cancel but must be transferred to the 258.27medical assistance account. 258.28 258.29 (c) Medical Assistance Grants; Long-Term Care Facilities. 367,444,000 419,749,000
258.30 258.31 (d) Medical Assistance Long-Term Care Waivers and Home Care Grants 853,567,000 1,039,517,000
258.32Manage Growth in TBI and CADI 258.33Waivers. During the fiscal years beginning 258.34on July 1, 2009, and July 1, 2010, the 258.35commissioner shall allocate money for home 259.1and community-based waiver programs 259.2under Minnesota Statutes, section 256B.49, 259.3to ensure a reduction in state spending that is 259.4equivalent to limiting the caseload growth of 259.5the TBI waiver to 12.5 allocations per month 259.6each year of the biennium and the CADI 259.7waiver to 95 allocations per month each year 259.8of the biennium. Limits do not apply: (1) 259.9when there is an approved plan for nursing 259.10facility bed closures for individuals under 259.11age 65 who require relocation due to the 259.12bed closure; (2) to fiscal year 2009 waiver 259.13allocations delayed due to unallotment; or (3) 259.14to transfers authorized by the commissioner 259.15from the personal care assistance program 259.16of individuals having a home care rating 259.17of "CS," "MT," or "HL." Priorities for the 259.18allocation of funds must be for individuals 259.19anticipated to be discharged from institutional 259.20settings or who are at imminent risk of a 259.21placement in an institutional setting. 259.22Manage Growth in DD Waiver. The 259.23commissioner shall manage the growth in 259.24the DD waiver by limiting the allocations 259.25included in the February 2009 forecast to 15 259.26additional diversion allocations each month 259.27for the calendar years that begin on January 259.281, 2010, and January 1, 2011. Additional 259.29allocations must be made available for 259.30transfers authorized by the commissioner 259.31from the personal care program of individuals 259.32having a home care rating of "CS," "MT," 259.33or "HL." 259.34Adjustment to Lead Agency Waiver 259.35Allocations. Prior to the availability of the 259.36alternative license defined in Minnesota 260.1Statutes, section 245A.11, subdivision 8, 260.2the commissioner shall reduce lead agency 260.3waiver allocations for the purposes of 260.4implementing a moratorium on corporate 260.5foster care. 260.6Alternatives to Personal Care Assistance 260.7Services. Base level funding of $3,237,000 260.8in fiscal year 2012 and $4,856,000 in 260.9fiscal year 2013 is to implement alternative 260.10services to personal care assistance services 260.11for persons with mental health and other 260.12behavioral challenges who can benefit 260.13from other services that more appropriately 260.14meet their needs and assist them in living 260.15independently in the community. These 260.16services may include, but not be limited to, a 260.171915(i) state plan option. 260.18 (e) Mental Health Grants
260.19 Appropriations by Fund 260.20 General 77,739,000 77,739,000 260.21 Health Care Access 750,000 750,000 260.22 Lottery Prize 1,508,000 1,508,000
260.23Funding Usage. Up to 75 percent of a fiscal 260.24year's appropriation for adult mental health 260.25grants may be used to fund allocations in that 260.26portion of the fiscal year ending December 260.2731. 260.28 (f) Deaf and Hard-of-Hearing Grants 1,930,000 1,917,000
260.29 (g) Chemical Dependency Entitlement Grants 111,303,000 122,822,000
260.30Payments for Substance Abuse Treatment. 260.31For placements beginning during fiscal years 260.322010 and 2011, county-negotiated rates and 260.33provider claims to the consolidated chemical 260.34dependency fund must not exceed the lesser 260.35of: 261.1(1) rates charged for these services on 261.2January 1, 2009; or 261.3(2) 160 percent of the average rate on January 261.41, 2009, for each group of vendors with 261.5similar attributes. 261.6Rates for fiscal years 2010 and 2011 must 261.7not exceed 160 percent of the average rate on 261.8January 1, 2009, for each group of vendors 261.9with similar attributes. 261.10Effective July 1, 2010, rates that were above 261.11the average rate on January 1, 2009, are 261.12reduced by five percent from the rates in 261.13effect on June 1, 2010. Rates below the 261.14average rate on January 1, 2009, are reduced 261.15by 1.8 percent from the rates in effect on 261.16June 1, 2010. Services provided under 261.17this section by state-operated services are 261.18exempt from the rate reduction. For services 261.19provided in fiscal years 2012 and 2013, the 261.20statewide aggregate payment under the new 261.21rate methodology to be developed under 261.22Minnesota Statutes, section 254B.12, must 261.23not exceed the projected aggregate payment 261.24under the rates in effect for fiscal year 2011 261.25excluding the rate reduction for rates that 261.26were below the average on January 1, 2009, 261.27plus a state share increase of $3,787,000 for 261.28fiscal year 2012 and $5,023,000 for fiscal 261.29year 2013. Notwithstanding any provision 261.30to the contrary in this article, this provision 261.31expires on June 30, 2013. 261.32Chemical Dependency Special Revenue 261.33Account. For fiscal year 2010, $750,000 261.34must be transferred from the consolidated 261.35chemical dependency treatment fund 262.1administrative account and deposited into the 262.2general fund. 262.3County CD Share of MA Costs for 262.4ARRA Compliance. Notwithstanding the 262.5provisions of Minnesota Statutes, chapter 262.6254B, for chemical dependency services 262.7provided during the period October 1, 2008, 262.8to December 31, 2010, and reimbursed by 262.9medical assistance at the enhanced federal 262.10matching rate provided under the American 262.11Recovery and Reinvestment Act of 2009, the 262.12county share is 30 percent of the nonfederal 262.13share. This provision is effective the day 262.14following final enactment. 262.15 262.16 (h) Chemical Dependency Nonentitlement Grants 1,729,000 1,729,000
262.17 (i) Other Continuing Care Grants 19,201,000 17,528,000
262.18Base Adjustment. The general fund base is 262.19increased by $2,639,000 in fiscal year 2012 262.20and increased by $3,854,000 in fiscal year 262.212013. 262.22Technology Grants. $650,000 in fiscal 262.23year 2010 and $1,000,000 in fiscal year 262.242011 are for technology grants, case 262.25consultation, evaluation, and consumer 262.26information grants related to developing and 262.27supporting alternatives to shift-staff foster 262.28care residential service models. 262.29Other Continuing Care Grants; HIV 262.30Grants. Money appropriated for the HIV 262.31drug and insurance grant program in fiscal 262.32year 2010 may be used in either year of the 262.33biennium. 262.34Quality Assurance Commission. Effective 262.35July 1, 2009, state funding for the quality 263.1assurance commission under Minnesota 263.2Statutes, section 256B.0951, is canceled. 263.3    Sec. 47. new text begin DIRECTIONS TO COMMISSIONER.new text end 263.4    new text begin Subdivision 1.new text end new text begin Co-payments for home and community-based services.new text end new text begin Upon new text end 263.5new text begin federal approval, the commissioner of human services shall develop and implement a new text end 263.6new text begin co-payment schedule for individuals receiving home and community-based services under new text end 263.7new text begin Minnesota Statutes, chapter 256B.new text end 263.8    new text begin Subd. 2.new text end new text begin Federal waiver amendment.new text end new text begin The commissioner shall seek an amendment new text end 263.9new text begin to the 1915c home and community-based waivers under Minnesota Statutes, sections new text end 263.10new text begin 256B.092 and 256B.49, to allow properly licensed residential programs under Minnesota new text end 263.11new text begin Statutes, section 245A.02, subdivision 14, to provide residential services to up to eight new text end 263.12new text begin individuals with physical or developmental disabilities, chronic illnesses, or traumatic new text end 263.13new text begin brain injuries. A facility licensed for five to eight people must be an existing residential new text end 263.14new text begin building, such as a duplex, that is owned by the same company and meets all other new text end 263.15new text begin licensing requirements.new text end 263.16    new text begin Subd. 3.new text end new text begin Recommendations for personal care assistance service changes.new text end new text begin The new text end 263.17new text begin commissioner shall consult with stakeholder groups, including counties, advocates, new text end 263.18new text begin persons receiving personal care assistance services, and personal care assistance providers, new text end 263.19new text begin and make recommendations to the legislature by February 1, 2014, on changes that could new text end 263.20new text begin be made to the program to improve oversight, program efficiency, and cost-effectiveness.new text end 263.21    new text begin Subd. 4.new text end new text begin Nursing facility pay-for-performance reimbursement system.new text end 263.22new text begin The commissioner of human services shall report to the legislative committees with new text end 263.23new text begin jurisdiction over nursing facility policy and finance with recommendations for developing new text end 263.24new text begin and implementing a pay-for-performance reimbursement system with a quality add-on by new text end 263.25new text begin January 15, 2012.new text end 263.26    new text begin Subd. 5.new text end new text begin ICF/MR transition plan.new text end new text begin The commissioner of human services shall new text end 263.27new text begin work with stakeholders to develop and implement a plan by June 30, 2013, to transition new text end 263.28new text begin individuals currently residing in intermediate care facilities for persons with developmental new text end 263.29new text begin disabilities into the least restrictive community settings possible. The plan must include a new text end 263.30new text begin requirement for a cooperative planning process between the counties and providers for new text end 263.31new text begin the downsizing or closure of intermediate care facilities for persons with developmental new text end 263.32new text begin disabilities, with funding from the bed closures converting to home and community-based new text end 263.33new text begin waiver funding to fund services for those leaving the intermediate care facilities for new text end 263.34new text begin persons with developmental disabilities based on a plan approved by the commissioner. In new text end 263.35new text begin order to facilitate this process, the commissioner shall provide information to facilities and new text end 264.1new text begin counties about the number of people in facilities who have requested to move to home and new text end 264.2new text begin community-based services. Individuals residing in intermediate care facilities for persons new text end 264.3new text begin with developmental disabilities who choose to remain there or whose health or safety new text end 264.4new text begin would be put at risk in a less restrictive setting may continue to reside in intermediate care new text end 264.5new text begin facilities for persons with developmental disabilities.new text end 264.6    new text begin Subd. 6.new text end new text begin Representative payee.new text end new text begin The commissioner of human services shall make new text end 264.7new text begin recommendations to the legislative committees with jurisdiction over health and human new text end 264.8new text begin services policy and finance by January 15, 2012, on ways to better manage funds for new text end 264.9new text begin persons who rely on a representative payee.new text end 264.10    Sec. 48. new text begin STATE PLAN AMENDMENT TO IMPLEMENT SELF-DIRECTED new text end 264.11new text begin PERSONAL SUPPORTS.new text end 264.12new text begin By July 15, 2011, the commissioner shall submit a state plan amendment to new text end 264.13new text begin implement Minnesota Statutes, section 256B.0657, as soon as possible upon federal new text end 264.14new text begin approval.new text end 264.15    Sec. 49. new text begin AMENDMENT FOR SELF-DIRECTED COMMUNITY SUPPORTS.new text end 264.16new text begin By September 1, 2011, the commissioner shall submit an amendment to the home new text end 264.17new text begin and community-based waiver programs consistent with implementing the self-directed new text end 264.18new text begin option under Minnesota Statutes, section 256B.0657, through statewide enrolled providers new text end 264.19new text begin contracted to provide outreach information, training, and fiscal support entity services to new text end 264.20new text begin all eligible recipients choosing this option and with shared care in some types of services. new text end 264.21new text begin The waiver amendment shall be consistent with changes in case management services new text end 264.22new text begin under Minnesota Statutes, section 256B.092.new text end 264.23    Sec. 50. new text begin ESTABLISHMENT OF RATES FOR SHARED HOME AND new text end 264.24new text begin COMMUNITY-BASED WAIVER SERVICES.new text end 264.25new text begin By January 1, 2012, the commissioner shall establish rates to begin paying for new text end 264.26new text begin in-home services and personal supports under all of the home and community-based new text end 264.27new text begin waiver services programs consistent with the standards in Minnesota Statutes, section new text end 264.28new text begin 256B.4912, subdivision 2.new text end 264.29    Sec. 51. new text begin ESTABLISHMENT OF RATE FOR CASE MANAGEMENT new text end 264.30new text begin SERVICES.new text end 264.31new text begin By July 1, 2012, the commissioner shall establish the rate to be paid for case new text end 264.32new text begin management services under Minnesota Statutes, sections 256B.0621, subdivision 2, clause new text end 265.1new text begin (4), 256B.092, and 256B.49, consistent with the standards in Minnesota Statutes, section new text end 265.2new text begin 256B.4912, subdivision 2.new text end 265.3    Sec. 52. new text begin RECOMMENDATIONS FOR FURTHER CASE MANAGEMENT new text end 265.4new text begin REDESIGN.new text end 265.5new text begin By February 1, 2012, the commissioner of human services shall develop a legislative new text end 265.6new text begin report with specific recommendations and language for proposed legislation to be effective new text end 265.7new text begin July 1, 2012, for the following:new text end 265.8new text begin (1) definitions of service and consolidation of standards and rates to the extent new text end 265.9new text begin appropriate for all types of medical assistance case management services, including new text end 265.10new text begin targeted case management under Minnesota Statutes, sections 256B.0621; 256B.0625, new text end 265.11new text begin subdivision 20; and 256B.0924; mental health case management services for children new text end 265.12new text begin and adults, all types of home and community-based waiver case management, and case new text end 265.13new text begin management under Minnesota Rules, parts 9525.0004 to 9525.0036. This work shall be new text end 265.14new text begin completed in collaboration with efforts under Minnesota Statutes, section 256B.4912;new text end 265.15new text begin (2) recommendations on county of financial responsibility requirements and quality new text end 265.16new text begin assurance measures for case management; new text end 265.17new text begin (3) identification of county administrative functions that may remain entwined in new text end 265.18new text begin case management service delivery models; andnew text end 265.19new text begin (4) implementation of a methodology to fully fund county case management new text end 265.20new text begin administrative functions. new text end 265.21    Sec. 53. new text begin MY LIFE, MY CHOICES TASK FORCE.new text end 265.22    new text begin Subdivision 1.new text end new text begin Establishment.new text end new text begin The My Life, My Choices Task Force is established new text end 265.23new text begin to create a system of supports and services for people with disabilities governed by the new text end 265.24new text begin following principles:new text end 265.25new text begin (1) freedom to act as a consumer of services in the marketplace;new text end 265.26new text begin (2) freedom to choose to take as much risk as any other citizen;new text end 265.27new text begin (3) more choices in levels of service that may vary throughout life;new text end 265.28new text begin (4) opportunity to work with a trusted partner and fiscal support entity to manage a new text end 265.29new text begin personal budget and to be accountable for reporting spending and personal outcomes;new text end 265.30new text begin (5) opportunity to live with minimal constraints instead of minimal freedoms; andnew text end 265.31new text begin (6) ability to consolidate funding streams into an individualized budget.new text end 265.32    new text begin Subd. 2.new text end new text begin Membership.new text end new text begin The My Life, My Choices Task Force shall consist of the new text end 265.33new text begin lieutenant governor; the commissioner of human services, or designee; a representative of new text end 265.34new text begin the Minnesota Chamber of Commerce; and the following to be appointed by the governor: new text end 266.1new text begin one administrative law judge, one labor representative, two family members of people new text end 266.2new text begin with disabilities, and one individual with disabilities. In addition, the following shall be new text end 266.3new text begin appointed jointly by the speaker of the house and the senate Subcommittee on Committees new text end 266.4new text begin of the Committee on Rules and Administration, a representative of a disability advocacy new text end 266.5new text begin organization; a representative of a disability legal services advocacy organization; new text end 266.6new text begin representatives of two nonprofit organizations, one of which serves all 87 counties; and new text end 266.7new text begin a representative of a philanthropic organization. Appointed nongovernmental members new text end 266.8new text begin of the task force shall serve as staff for the task force and take on the responsibilities of new text end 266.9new text begin coordinating meetings, reporting on committee recommendations, and providing other new text end 266.10new text begin staff support as needed to meet the responsibilities of the task force as described in new text end 266.11new text begin subdivision 3. Legislative appointment of nongovernmental members of the task force new text end 266.12new text begin shall be conditioned upon agreement from the appointees to provide staff assistance to new text end 266.13new text begin execute the work of the task force. The chairs and ranking minority members of the new text end 266.14new text begin legislative committees with jurisdiction over health and human services policy and finance new text end 266.15new text begin shall serve as ex officio members.new text end 266.16    new text begin Subd. 3.new text end new text begin Duties.new text end new text begin The task force shall make recommendations, including proposed new text end 266.17new text begin legislation, and report to the legislative committees with jurisdiction over health and new text end 266.18new text begin human services policy and finance by November 15, 2011, on creating a system of new text end 266.19new text begin supports and services for people with disabilities by July 1, 2012, as governed by the new text end 266.20new text begin principles under subdivision 1. In making recommendations and proposed legislation, the new text end 266.21new text begin council shall work in conjunction with the Consumer-Directed Community Supports Task new text end 266.22new text begin Force and shall include self-directed planning, individual budgeting, choice of trusted new text end 266.23new text begin partner, self-directed purchasing of services and supports, reporting of outcomes, ability new text end 266.24new text begin to share in any savings, and any additional rules or laws that may need to be waived. new text end 266.25new text begin Recommendations from the task force shall be fully implemented by July 1, 2013.new text end 266.26    new text begin Subd. 4.new text end new text begin Expense reimbursement.new text end new text begin The members of the task force shall not be new text end 266.27new text begin reimbursed for expenses related to the duties of the task force. The task force shall be new text end 266.28new text begin independently staffed and coordinated by nongovernmental appointees who serve on the new text end 266.29new text begin task force, and no state funding shall be appropriated for expenses related to the task new text end 266.30new text begin force under this section.new text end 266.31    new text begin Subd. 5.new text end new text begin Expiration.new text end new text begin The task force expires on July 1, 2013.new text end 266.32new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end 267.1ARTICLE 7 267.2REDESIGNING SERVICE DELIVERY 267.3    Section 1. Minnesota Statutes 2010, section 119B.09, is amended by adding a 267.4subdivision to read: 267.5    new text begin Subd. 4b.new text end new text begin Electronic verification.new text end new text begin County agencies are authorized to use all new text end 267.6new text begin automated databases containing information regarding recipients' or applicants' income new text end 267.7new text begin in order to determine eligibility for the child care assistance under this chapter. The new text end 267.8new text begin information is sufficient to determine eligibility.new text end 267.9    Sec. 2. Minnesota Statutes 2010, section 256.01, subdivision 14b, is amended to read: 267.10    Subd. 14b. American Indian child welfare projects. (a) The commissioner of 267.11human services may authorize projects to test tribal delivery of child welfare services to 267.12American Indian children and their parents and custodians living on the reservation. 267.13The commissioner has authority to solicit and determine which tribes may participate 267.14in a project. Grants may be issued to Minnesota Indian tribes to support the projects. 267.15The commissioner may waive existing state rules as needed to accomplish the projects. 267.16Notwithstanding section 626.556, the commissioner may authorize projects to use 267.17alternative methods of investigating and assessing reports of child maltreatment, provided 267.18that the projects comply with the provisions of section 626.556 dealing with the rights 267.19of individuals who are subjects of reports or investigations, including notice and appeal 267.20rights and data practices requirements. The commissioner may seek any federal approvals 267.21necessary to carry out the projects as well as seek and use any funds available to the 267.22commissioner, including use of federal funds, foundation funds, existing grant funds, 267.23and other funds. The commissioner is authorized to advance state funds as necessary to 267.24operate the projects. Federal reimbursement applicable to the projects is appropriated 267.25to the commissioner for the purposes of the projects. The projects must be required to 267.26address responsibility for safety, permanency, and well-being of children. 267.27(b) For the purposes of this section, "American Indian child" means a person under 267.2818 years of age who is a tribal member or eligible for membership in one of the tribes 267.29chosen for a project under this subdivision and who is residing on the reservation of 267.30that tribe. 267.31(c) In order to qualify for an American Indian child welfare project, a tribe must: 267.32(1) be one of the existing tribes with reservation land in Minnesota; 267.33(2) have a tribal court with jurisdiction over child custody proceedings; 268.1(3) have a substantial number of children for whom determinations of maltreatment 268.2have occurred; 268.3(4) have capacity to respond to reports of abuse and neglect under section 626.556; 268.4(5) provide a wide range of services to families in need of child welfare services; and 268.5(6) have a tribal-state title IV-E agreement in effect. 268.6(d) Grants awarded under this section may be used for the nonfederal costs of 268.7providing child welfare services to American Indian children on the tribe's reservation, 268.8including costs associated with: 268.9(1) assessment and prevention of child abuse and neglect; 268.10(2) family preservation; 268.11(3) facilitative, supportive, and reunification services; 268.12(4) out-of-home placement for children removed from the home for child protective 268.13purposes; and 268.14(5) other activities and services approved by the commissioner that further the goals 268.15of providing safety, permanency, and well-being of American Indian children. 268.16(e) When a tribe has initiated a project and has been approved by the commissioner 268.17to assume child welfare responsibilities for American Indian children of that tribe under 268.18this section, the affected county social service agency is relieved of responsibility for 268.19responding to reports of abuse and neglect under section 626.556 for those children 268.20during the time within which the tribal project is in effect and funded. The commissioner 268.21shall work with tribes and affected counties to develop procedures for data collection, 268.22evaluation, and clarification of ongoing role and financial responsibilities of the county 268.23and tribe for child welfare services prior to initiation of the project. Children who have not 268.24been identified by the tribe as participating in the project shall remain the responsibility 268.25of the county. Nothing in this section shall alter responsibilities of the county for law 268.26enforcement or court services. 268.27(f) Participating tribes may conduct children's mental health screenings under section 268.28245.4874, subdivision 1 , paragraph (a), clause (14), for children who are eligible for the 268.29initiative and living on the reservation and who meet one of the following criteria: 268.30(1) the child must be receiving child protective services; 268.31(2) the child must be in foster care; or 268.32(3) the child's parents must have had parental rights suspended or terminated. 268.33Tribes may access reimbursement from available state funds for conducting the screenings. 268.34Nothing in this section shall alter responsibilities of the county for providing services 268.35under section 245.487. 269.1(g) Participating tribes may establish a local child mortality review panel. In 269.2establishing a local child mortality review panel, the tribe agrees to conduct local child 269.3mortality reviews for child deaths or near-fatalities occurring on the reservation under 269.4subdivision 12 . Tribes with established child mortality review panels shall have access 269.5to nonpublic data and shall protect nonpublic data under subdivision 12, paragraphs (c) 269.6to (e). The tribe shall provide written notice to the commissioner and affected counties 269.7when a local child mortality review panel has been established and shall provide data upon 269.8request of the commissioner for purposes of sharing nonpublic data with members of the 269.9state child mortality review panel in connection to an individual case. 269.10(h) The commissioner shall collect information on outcomes relating to child safety, 269.11permanency, and well-being of American Indian children who are served in the projects. 269.12Participating tribes must provide information to the state in a format and completeness 269.13deemed acceptable by the state to meet state and federal reporting requirements. 269.14    new text begin (i) In consultation with the White Earth Band, the commissioner shall develop new text end 269.15new text begin and submit to the chairs and ranking minority members of the legislative committees new text end 269.16new text begin with jurisdiction over health and human services a plan to transfer legal responsibility new text end 269.17new text begin for providing child protective services to White Earth Band member children residing in new text end 269.18new text begin Hennepin County to the White Earth Band. The plan shall include a financing proposal, new text end 269.19new text begin definitions of key terms, statutory amendments required, and other provisions required to new text end 269.20new text begin implement the plan. The commissioner shall submit the plan by January 15, 2012.new text end 269.21    Sec. 3. Minnesota Statutes 2010, section 256.01, is amended by adding a subdivision 269.22to read: 269.23    new text begin Subd. 14c.new text end new text begin American Indian child welfare, social, and human services project; new text end 269.24new text begin White Earth Band of Ojibwe.new text end new text begin (a) The commissioner of human services shall enter into a new text end 269.25new text begin contractual agreement as authorized under subdivision 2, paragraph (a), clause (7), with new text end 269.26new text begin the White Earth Band of Ojibwe Indians for the tribe to provide all human services and new text end 269.27new text begin public assistance programs that are under the supervision of the commissioner to tribal new text end 269.28new text begin members who reside on the reservation. Grants may be issued to the White Earth Band new text end 269.29new text begin of Ojibwe Indians to support the project. The commissioner may waive existing rules to new text end 269.30new text begin support this project. The commissioner shall seek any federal approvals necessary to carry new text end 269.31new text begin out the project as well as seek and use any funds available to the commissioner, including new text end 269.32new text begin use of federal funds, foundation funds, existing grant funds, and other funds. The new text end 269.33new text begin commissioner is authorized to advance state funds as necessary to operate the projects. new text end 269.34new text begin Federal reimbursement applicable to the projects is appropriated to the commissioner for new text end 269.35new text begin purposes of the project.new text end 270.1new text begin (b) The commissioner shall redirect all funds provided to Mahnomen County for new text end 270.2new text begin these services, including administrative expenses, to the White Earth Band of Ojibwe new text end 270.3new text begin Indians.new text end 270.4new text begin (c) The commissioner, in consultation with the tribe, is authorized to determine: (1) new text end 270.5new text begin which programs not currently provided by the White Earth Band of Ojibwe Indians will be new text end 270.6new text begin transferred to the tribe; and (2) the process by which the new programs will be transferred. new text end 270.7new text begin In the case of a dispute, a two-thirds vote of the tribal council to transfer a program to new text end 270.8new text begin the tribe must overrule the decision of the commissioner.new text end 270.9new text begin (d) When the commissioner approves transfer of programs and the tribe assumes new text end 270.10new text begin responsibility under this section, Mahnomen County is relieved of responsibility for new text end 270.11new text begin providing program services to tribal members who live on the reservation while the tribal new text end 270.12new text begin project is in effect and funded. The commissioner shall seek and use any funds available, new text end 270.13new text begin including federal funds, foundation funds, existing grant funds, and other state funds as new text end 270.14new text begin available. new text end 270.15new text begin (e) The tribe shall comply with all reporting and record keeping requirements under new text end 270.16new text begin state and federal laws and rules.new text end 270.17    Sec. 4. new text begin [256.0145] COMPUTER SYSTEM SIMPLIFICATION.new text end 270.18    new text begin Subdivision 1.new text end new text begin Reprogram MAXIS.new text end new text begin The commissioner of human services, as part new text end 270.19new text begin of the enterprise architecture project, shall reprogram the MAXIS computer system to new text end 270.20new text begin automatically apply child support payments entered into the PRISM computer system to new text end 270.21new text begin a MAXIS case file.new text end 270.22    new text begin Subd. 2.new text end new text begin Program the social service information system.new text end new text begin The commissioner of new text end 270.23new text begin human services shall require all prepaid health plans to accept a billing format identical to new text end 270.24new text begin the MMIS billing format for payment to county agencies for mental health targeted case new text end 270.25new text begin management claims, elderly waiver claims, and other claim categories as added to the new text end 270.26new text begin benefit set. The commissioner shall make any necessary changes to the SSIS system to new text end 270.27new text begin bill prepaid health plans for those claims.new text end 270.28    Sec. 5. new text begin [256.0147] COUNTY ELECTRONIC VERIFICATION TO DETERMINE new text end 270.29new text begin ELIGIBILITY.new text end 270.30new text begin County agencies are authorized to use all automated databases containing new text end 270.31new text begin information regarding recipients' or applicants' income in order to determine eligibility new text end 270.32new text begin for child support enforcement, general assistance, Minnesota supplemental aid, and new text end 270.33new text begin programs, services, and supports under chapter 256J. The information is sufficient to new text end 270.34new text begin determine eligibility. State and county caseworkers shall not be cited in error, as part of new text end 271.1new text begin any audit and quality review, for an incorrect eligibility determination based on current but new text end 271.2new text begin inaccurate information received through a state-approved electronic data source. If there new text end 271.3new text begin is a potential error, the reviewer must forward a corrective action notice to the caseworker new text end 271.4new text begin for proper and immediate correction. If the state or county caseworker has data available new text end 271.5new text begin through client reporting, or other means, that are more accurate than state-approved new text end 271.6new text begin electronic data, the caseworker should use the more accurate information in making the new text end 271.7new text begin eligibility determination.new text end 271.8    Sec. 6. Minnesota Statutes 2010, section 256B.69, is amended by adding a subdivision 271.9to read: 271.10    new text begin Subd. 30.new text end new text begin Provision of required materials in alternative formats.new text end new text begin (a) For the new text end 271.11new text begin purposes of this subdivision, "alternative format" means a medium other than paper and new text end 271.12new text begin "prepaid health plan" means managed care plans and county-based purchasing plans.new text end 271.13new text begin (b) A prepaid health plan may provide in an alternative format a provider directory new text end 271.14new text begin and certificate of coverage, or materials otherwise required to be available in writing new text end 271.15new text begin under Code of Federal Regulations, title 42, section 438.10, or under the commissioner's new text end 271.16new text begin contract with the prepaid health plan, if the following conditions are met:new text end 271.17new text begin (1) the prepaid health plan, local agency, or commissioner, as applicable, informs the new text end 271.18new text begin enrollee that:new text end 271.19new text begin (i) provision in an alternative format is available and the enrollee affirmatively new text end 271.20new text begin requests of the prepaid health plan that the provider directory, certificate of coverage, new text end 271.21new text begin or materials otherwise required under Code of Federal Regulations, title 42, section new text end 271.22new text begin 438.10, or under the commissioner's contract with the prepaid health plan be provided in new text end 271.23new text begin an alternative format; andnew text end 271.24new text begin (ii) a record of the enrollee request is retained by the prepaid health plan in the new text end 271.25new text begin form of written direction from the enrollee or a documented telephone call followed by a new text end 271.26new text begin confirmation letter to the enrollee from the prepaid health plan that explains that the new text end 271.27new text begin enrollee may change the request at any time;new text end 271.28new text begin (2) the materials are sent to a secured mailbox and are made available at a new text end 271.29new text begin password-protected secured Web site or on a data storage device if the materials contain new text end 271.30new text begin enrollee data that is individually identifiable;new text end 271.31new text begin (3) the enrollee is provided a customer service number on the enrollee's membership new text end 271.32new text begin card that may be called to request a paper version of the materials provided in an new text end 271.33new text begin alternative format; andnew text end 271.34new text begin (4) the materials provided in an alternative format meet all other requirements of new text end 271.35new text begin the commissioner regarding content, size of typeface, and any required time frames for new text end 272.1new text begin distribution. "Required time frames for distribution" must permit sufficient time for new text end 272.2new text begin prepaid health plans to distribute materials in alternative formats upon receipt of enrollees' new text end 272.3new text begin requests for the materials.new text end 272.4new text begin (c) A prepaid health plan may provide in an alternative format its primary care new text end 272.5new text begin network list to the commissioner and to local agencies within its service area. The new text end 272.6new text begin commissioner or local agency, as applicable, shall inform a potential enrollee of the new text end 272.7new text begin availability of a prepaid health plan's primary care network list in an alternative format. If new text end 272.8new text begin the potential enrollee requests an alternative format of the prepaid health plan's primary new text end 272.9new text begin care network list, a record of that request shall be retained by the commissioner or local new text end 272.10new text begin agency. The potential enrollee is permitted to withdraw the request at any time.new text end 272.11new text begin The prepaid health plan shall submit sufficient paper versions of the primary new text end 272.12new text begin care network list to the commissioner and to local agencies within its service area to new text end 272.13new text begin accommodate potential enrollee requests for paper versions of the primary care network new text end 272.14new text begin list.new text end 272.15new text begin (d) A prepaid health plan may provide in an alternative format materials otherwise new text end 272.16new text begin required to be available in writing under Code of Federal Regulations, title 42, section new text end 272.17new text begin 438.10, or under the commissioner's contract with the prepaid health plan, if the conditions new text end 272.18new text begin of paragraphs (b), (c), and (e), are met for persons who are:new text end 272.19new text begin (1) enrolled in integrated Medicare and Medicaid programs under subdivisions new text end 272.20new text begin 23 and 28;new text end 272.21new text begin (2) enrolled in managed care long-term care programs under subdivision 6b;new text end 272.22new text begin (3) dually eligible for Medicare and medical assistance; ornew text end 272.23new text begin (4) in the waiting period for Medicare.new text end 272.24new text begin (e) The commissioner shall seek any federal Medicaid waivers within 90 days after new text end 272.25new text begin the effective date of this subdivision that are necessary to provide alternative formats of new text end 272.26new text begin required material to enrollees of prepaid health plans as authorized under this subdivision.new text end 272.27new text begin (f) The commissioner shall consult with managed care plans, county-based new text end 272.28new text begin purchasing plans, counties, and other interested parties to determine how materials new text end 272.29new text begin required to be made available to enrollees under Code of Federal Regulations, title 42, new text end 272.30new text begin section 438.10, or under the commissioner's contract with a prepaid health plan may new text end 272.31new text begin be provided in an alternative format on the basis that the enrollee has not opted in to new text end 272.32new text begin receive the alternative format. The commissioner shall consult with managed care new text end 272.33new text begin plans, county-based purchasing plans, counties, and other interested parties to develop new text end 272.34new text begin recommendations relating to the conditions that must be met for an opt-out process new text end 272.35new text begin to be granted.new text end 273.1    Sec. 7. Minnesota Statutes 2010, section 256D.09, subdivision 6, is amended to read: 273.2    Subd. 6. Recovery of overpayments. (a) If an amount of general assistance or 273.3family general assistance is paid to a recipient in excess of the payment due, it shall be 273.4recoverable by the county agency. The agency shall give written notice to the recipient of 273.5its intention to recover the overpayment. 273.6(b) new text begin Except as provided for interim assistance in section 256D.06, subdivision new text end 273.7new text begin 5, new text end when an overpayment occurs, the county agency shall recover the overpayment 273.8from a current recipient by reducing the amount of aid payable to the assistance unit of 273.9which the recipient is a member, for one or more monthly assistance payments, until 273.10the overpayment is repaid. All county agencies in the state shall reduce the assistance 273.11payment by three percent of the assistance unit's standard of need in nonfraud cases and 273.12ten percent where fraud has occurred, or the amount of the monthly payment, whichever is 273.13less, for all overpayments. 273.14(c) In cases when there is both an overpayment and underpayment, the county 273.15agency shall offset one against the other in correcting the payment. 273.16(d) Overpayments may also be voluntarily repaid, in part or in full, by the individual, 273.17in addition to the aid reductions provided in this subdivision, to include further voluntary 273.18reductions in the grant level agreed to in writing by the individual, until the total amount 273.19of the overpayment is repaid. 273.20(e) The county agency shall make reasonable efforts to recover overpayments to 273.21persons no longer on assistance under standards adopted in rule by the commissioner 273.22of human services. The county agency need not attempt to recover overpayments of 273.23less than $35 paid to an individual no longer on assistance if the individual does not 273.24receive assistance again within three years, unless the individual has been convicted of 273.25violating section 256.98. 273.26new text begin (f) Establishment of an overpayment is limited to 12 months prior to the month of new text end 273.27new text begin discovery due to agency error and six years prior to the month of discovery due to client new text end 273.28new text begin error or an intentional program violation determined under section 256.046.new text end 273.29    Sec. 8. Minnesota Statutes 2010, section 256D.49, subdivision 3, is amended to read: 273.30    Subd. 3. Overpayment of monthly grants and recovery of ATM errors. new text begin (a) new text end When 273.31the county agency determines that an overpayment of the recipient's monthly payment 273.32of Minnesota supplemental aid has occurred, it shall issue a notice of overpayment 273.33to the recipient. If the person is no longer receiving Minnesota supplemental aid, the 273.34county agency may request voluntary repayment or pursue civil recovery. If the person is 273.35receiving Minnesota supplemental aid, the county agency shall recover the overpayment 274.1by withholding an amount equal to three percent of the standard of assistance for the 274.2recipient or the total amount of the monthly grant, whichever is less. 274.3new text begin (b) Establishment of an overpayment is limited to 12 months from the date of new text end 274.4new text begin discovery due to agency error and six years prior to the month of discovery due to client new text end 274.5new text begin error or an intentional program violation determined under section 256.046.new text end 274.6new text begin (c) new text end For recipients receiving benefits via electronic benefit transfer, if the overpayment 274.7is a result of an automated teller machine (ATM) dispensing funds in error to the recipient, 274.8the agency may recover the ATM error by immediately withdrawing funds from the 274.9recipient's electronic benefit transfer account, up to the amount of the error. 274.10new text begin (d) new text end Residents of nursing homes, regional treatment centers, and new text begin licensed residential new text end 274.11facilities with negotiated rates shall not have overpayments recovered from their personal 274.12needs allowance. 274.13    Sec. 9. Minnesota Statutes 2010, section 256J.38, subdivision 1, is amended to read: 274.14    Subdivision 1. Scope of overpayment. new text begin (a) new text end When a participant or former participant 274.15receives an overpayment due to agency, client, or ATM error, or due to assistance received 274.16while an appeal is pending and the participant or former participant is determined 274.17ineligible for assistance or for less assistance than was received, the county agency must 274.18recoup or recover the overpayment using the following methods: 274.19(1) reconstruct each affected budget month and corresponding payment month; 274.20(2) use the policies and procedures that were in effect for the payment month; and 274.21(3) do not allow employment disregards in section 256J.21, subdivision 3 or 4, in the 274.22calculation of the overpayment when the unit has not reported within two calendar months 274.23following the end of the month in which the income was received. 274.24new text begin (b) Establishment of an overpayment is limited to 12 months prior to the month of new text end 274.25new text begin discovery due to agency error and six years prior to the month of discovery due to client new text end 274.26new text begin error or an intentional program violation determined under section 256.046.new text end 274.27    Sec. 10. Minnesota Statutes 2010, section 393.07, subdivision 10, is amended to read: 274.28    Subd. 10. Food stamp program; Maternal and Child Nutrition Act. (a) The local 274.29social services agency shall establish and administer the food stamp program according 274.30to rules of the commissioner of human services, the supervision of the commissioner as 274.31specified in section 256.01, and all federal laws and regulations. The commissioner of 274.32human services shall monitor food stamp program delivery on an ongoing basis to ensure 274.33that each county complies with federal laws and regulations. Program requirements to be 274.34monitored include, but are not limited to, number of applications, number of approvals, 275.1number of cases pending, length of time required to process each application and deliver 275.2benefits, number of applicants eligible for expedited issuance, length of time required 275.3to process and deliver expedited issuance, number of terminations and reasons for 275.4terminations, client profiles by age, household composition and income level and sources, 275.5and the use of phone certification and home visits. The commissioner shall determine the 275.6county-by-county and statewide participation rate. 275.7(b) On July 1 of each year, the commissioner of human services shall determine a 275.8statewide and county-by-county food stamp program participation rate. The commissioner 275.9may designate a different agency to administer the food stamp program in a county if the 275.10agency administering the program fails to increase the food stamp program participation 275.11rate among families or eligible individuals, or comply with all federal laws and regulations 275.12governing the food stamp program. The commissioner shall review agency performance 275.13annually to determine compliance with this paragraph. 275.14(c) A person who commits any of the following acts has violated section 256.98 or 275.15609.821 , or both, and is subject to both the criminal and civil penalties provided under 275.16those sections: 275.17(1) obtains or attempts to obtain, or aids or abets any person to obtain by means of a 275.18willful statement or misrepresentation, or intentional concealment of a material fact, food 275.19stamps or vouchers issued according to sections 145.891 to 145.897 to which the person 275.20is not entitled or in an amount greater than that to which that person is entitled or which 275.21specify nutritional supplements to which that person is not entitled; or 275.22(2) presents or causes to be presented, coupons or vouchers issued according to 275.23sections 145.891 to 145.897 for payment or redemption knowing them to have been 275.24received, transferred or used in a manner contrary to existing state or federal law; or 275.25(3) willfully uses, possesses, or transfers food stamp coupons, authorization to 275.26purchase cards or vouchers issued according to sections 145.891 to 145.897 in any manner 275.27contrary to existing state or federal law, rules, or regulations; or 275.28(4) buys or sells food stamp coupons, authorization to purchase cards, other 275.29assistance transaction devices, vouchers issued according to sections 145.891 to 145.897, 275.30or any food obtained through the redemption of vouchers issued according to sections 275.31145.891 to 145.897 for cash or consideration other than eligible food. 275.32(d) A peace officer or welfare fraud investigator may confiscate food stamps, 275.33authorization to purchase cards, or other assistance transaction devices found in the 275.34possession of any person who is neither a recipient of the food stamp program nor 275.35otherwise authorized to possess and use such materials. Confiscated property shall be 275.36disposed of as the commissioner may direct and consistent with state and federal food 276.1stamp law. The confiscated property must be retained for a period of not less than 30 days 276.2to allow any affected person to appeal the confiscation under section 256.045. 276.3(e) Food stamp overpayment claims which are due in whole or in part to client error 276.4shall be established by the county agency for a period of six years from the date of any 276.5resultant overpaymentnew text begin Establishment of an overpayment is limited to 12 months prior to new text end 276.6new text begin the month of discovery due to agency error and six years prior to the month of discovery new text end 276.7new text begin due to client error or an intentional program violation determined under section 256.046new text end . 276.8(f) With regard to the federal tax revenue offset program only, recovery incentives 276.9authorized by the federal food and consumer service shall be retained at the rate of 50 276.10percent by the state agency and 50 percent by the certifying county agency. 276.11(g) A peace officer, welfare fraud investigator, federal law enforcement official, 276.12or the commissioner of health may confiscate vouchers found in the possession of any 276.13person who is neither issued vouchers under sections 145.891 to 145.897, nor otherwise 276.14authorized to possess and use such vouchers. Confiscated property shall be disposed of 276.15as the commissioner of health may direct and consistent with state and federal law. The 276.16confiscated property must be retained for a period of not less than 30 days. 276.17(h) The commissioner of human services may seek a waiver from the United States 276.18Department of Agriculture to allow the state to specify foods that may and may not be 276.19purchased in Minnesota with benefits funded by the federal Food Stamp Program. The 276.20commissioner shall consult with the members of the house of representatives and senate 276.21policy committees having jurisdiction over food support issues in developing the waiver. 276.22The commissioner, in consultation with the commissioners of health and education, shall 276.23develop a broad public health policy related to improved nutrition and health status. The 276.24commissioner must seek legislative approval prior to implementing the waiver. 276.25    Sec. 11. Minnesota Statutes 2010, section 402A.10, subdivision 4, is amended to read: 276.26    Subd. 4. Essential human services or essential services. "Essential human 276.27services" or "essential services" means assistance and services to recipients or potential 276.28recipients of public welfare and other services delivered by counties new text begin or tribes new text end that are 276.29mandated in federal and state law that are to be available in all counties of the state. 276.30    Sec. 12. Minnesota Statutes 2010, section 402A.10, subdivision 5, is amended to read: 276.31    Subd. 5. Service delivery authority. "Service delivery authority" means a single 276.32county, or groupnew text begin consortiumnew text end of counties operating by execution of a joint powers 276.33agreement under section 471.59 or other contractual agreement, that has voluntarily 276.34chosen by resolution of the county board of commissioners to participate in the redesign 277.1under this chapternew text begin or has been assigned by the commissioner pursuant to section 402A.18. new text end 277.2new text begin A service delivery authority includes an Indian tribe or group of tribes that have voluntarily new text end 277.3new text begin chosen by resolution of tribal government to participate in redesign under this chapternew text end . 277.4    Sec. 13. Minnesota Statutes 2010, section 402A.15, is amended to read: 277.5402A.15 STEERING COMMITTEE ON PERFORMANCE AND OUTCOME 277.6REFORMS. 277.7    Subdivision 1. Duties. (a) The Steering Committee on Performance and Outcome 277.8Reforms shall develop a uniform process to establish and review performance and outcome 277.9standards for all essential human services based on the current level of resources available, 277.10and tonew text begin shallnew text end develop appropriate reporting measures and a uniform accountability process 277.11for responding to a county's or human service new text begin delivery new text end authority's failure to make adequate 277.12progress on achieving performance measures. The accountability process shall focus on 277.13the performance measures rather than inflexible implementation requirements. 277.14(b) The steering committee shall: 277.15(1) by November 1, 2009, establish an agreed-upon list of essential services; 277.16(2) by February 15, 2010, develop and recommend to the legislature a uniform, 277.17graduated process, in addition to the remedies identified in section 402A.18, for responding 277.18to a county's failure to make adequate progress on achieving performance measures; and 277.19(3) by December 15, 2012, for each essential servicenew text begin ,new text end make recommendations 277.20to the legislature regarding (1)new text begin (i)new text end performance measures and goals based on those 277.21measures for each essential service, (2)new text begin and (ii)new text end a system for reporting on the performance 277.22measures and goals, and (3) appropriate resources, including funding, needed to achieve 277.23those performance measures and goals. The resource recommendations shall take into 277.24consideration program demand and the unique differences of local areas in geography and 277.25the populations served. Priority shall be given to services with the greatest variation in 277.26availability and greatest administrative demands. By January 15 of each year starting 277.27January 15, 2011, the steering committee shall report its recommendations to the governor 277.28and legislative committees with jurisdiction over health and human services. As part of its 277.29report, the steering committee shall, as appropriate, recommend statutory provisions, rules 277.30and requirements, and reports that should be repealed or eliminated. 277.31(c) As far as possible, the performance measures, reporting system, and funding 277.32shall be consistent across program areas. The development of performance measures shall 277.33consider the manner in which data will be collected and performance will be reported. 277.34The steering committee shall consider state and local administrative costs related to 277.35collecting data and reporting outcomes when developing performance measures. The 278.1steering committee shall correlate the performance measures and goals to available levels 278.2of resources, including state and local funding.new text begin The steering committee shall also identify new text end 278.3new text begin and incorporate federal performance measures in its recommendations for those program new text end 278.4new text begin areas where federal funding is contingent on meeting federal performance standards.new text end The 278.5steering committee shall take into consideration that the goal of implementing changes 278.6to program monitoring and reporting the progress toward achieving outcomes is to 278.7significantly minimize the cost of administrative requirements and to allow funds freed 278.8by reduced administrative expenditures to be used to provide additional services, allow 278.9flexibility in service design and management, and focus energies on achieving program 278.10and client outcomes. 278.11(d) In making its recommendations, the steering committee shall consider input from 278.12the council established in section 402A.20. The steering committee shall review the 278.13measurable goals established in a memorandum of understanding entered into under 278.14section 402A.30, subdivision 2, paragraph (b), and consider whether they may be applied 278.15as statewide performance outcomes. 278.16(e) The steering committee shall form work groups that include persons who provide 278.17or receive essential services and representatives of organizations who advocate on behalf 278.18of those persons. 278.19(f) By December 15, 2009, the steering committee shall establish a three-year 278.20schedule for completion of its work. The schedule shall be published on the Department of 278.21Human Services Web site and reported to the legislative committees with jurisdiction over 278.22health and human services. In addition, the commissioner shall post quarterly updates on 278.23the progress of the steering committee on the Department of Human Services Web site. 278.24    Subd. 2. Composition. (a) The steering committee shall include: 278.25(1) the commissioner of human services, or designee, and two additional 278.26representatives of the department; 278.27(2) two county commissioners, representative of rural and urban counties, selected 278.28by the Association of Minnesota Counties; 278.29(3) two county directors of human services, representative of rural and urban 278.30counties, selected by the Minnesota Association of County Social Service Administrators; 278.31and 278.32(4) three clients or client advocates representing different populations receiving 278.33services from the Department of Human Services, who are appointed by the commissioner. 278.34(b) The commissioner, or designee, and a county commissioner shall serve as 278.35cochairs of the committee. The committee shall be convened within 60 days of May 278.3615, 2009. 279.1(c) State agency staff shall serve as informational resources and staff to the steering 279.2committee. Statewide county associations may assemble county program data as required. 279.3(d) To promote information sharing and coordination between the steering committee 279.4and council, one of the county representatives from paragraph (a), clause (2), and one of the 279.5county representatives from paragraph (a), clause (3), must also serve as a representative 279.6on the council under section 402A.20, subdivision 1, paragraph (b), clause (5) or (6). 279.7    Sec. 14. Minnesota Statutes 2010, section 402A.18, is amended to read: 279.8402A.18 COMMISSIONER POWER TO REMEDY FAILURE TO MEET 279.9PERFORMANCE OUTCOMES. 279.10    Subdivision 1. Underperforming county; specific service. If the commissioner 279.11determines that a county or service delivery authority is deficient in achieving minimum 279.12performance outcomes for a specific essential service, the commissioner may impose the 279.13following remediesnew text begin and adjust state and federal program allocations accordinglynew text end : 279.14(1) voluntary incorporation of the administration and operation of the specific 279.15essential service with an existing service delivery authority or another county. A 279.16service delivery authority or county incorporating an underperforming county shall 279.17not be financially liable for the costs associated with remedying performance outcome 279.18deficiencies; 279.19(2) mandatory incorporation of the administration and operation of the specific 279.20essential service with an existing service delivery authority or another county. A 279.21service delivery authority or county incorporating an underperforming county shall 279.22not be financially liable for the costs associated with remedying performance outcome 279.23deficiencies; or 279.24(3) transfer of authority for program administration and operation of the specific 279.25essential service to the commissioner. 279.26    Subd. 2. Underperforming county; more than one-half of servicenew text begin servicesnew text end . If 279.27the commissioner determines that a county or service delivery authority is deficient in 279.28achieving minimum performance outcomes for more than one-half of the defined essential 279.29servicenew text begin servicesnew text end , the commissioner may impose the following remedies: 279.30(1) voluntary incorporation of the administration and operation of the specific 279.31essential servicenew text begin servicesnew text end with an existing service delivery authority or another county. 279.32A service delivery authority or county incorporating an underperforming county shall 279.33not be financially liable for the costs associated with remedying performance outcome 279.34deficiencies; 280.1(2) mandatory incorporation of the administration and operation of the specific 280.2essential servicenew text begin servicesnew text end with an existing service delivery authority or another county. 280.3A service delivery authority or county incorporating an underperforming county shall 280.4not be financially liable for the costs associated with remedying performance outcome 280.5deficiencies; or 280.6(3) transfer of authority for program administration and operation of the specific 280.7essential servicenew text begin servicesnew text end to the commissioner. 280.8    new text begin Subd. 2a.new text end new text begin Financial responsibility of underperforming county.new text end new text begin A county subject new text end 280.9new text begin to remedies under subdivision 1 or 2 shall provide to the entity assuming administration of new text end 280.10new text begin the essential service or essential services the amount of nonfederal and nonstate funding new text end 280.11new text begin needed to remedy performance outcome deficiencies.new text end 280.12    Subd. 3. Conditions prior to imposing remedies. Before the commissioner may 280.13impose the remedies authorized under this section, the following conditions must be met: 280.14(1) the county or service delivery authority determined by the commissioner 280.15to be deficient in achieving minimum performance outcomes has the opportunity, in 280.16coordination with the council, to develop a program outcome improvement plan. The 280.17program outcome improvement plan must be developed no later than six months from the 280.18date of the deficiency determination; and 280.19(2) the council has conducted an assessment of the program outcome improvement 280.20plan to determine if the county or service delivery authority has made satisfactory 280.21progress toward performance outcomes and has made a recommendation about remedies 280.22to the commissioner. The reviewnew text begin assessmentnew text end and recommendation must be made to the 280.23commissioner within 12 months from the date of the deficiency determination. 280.24    Sec. 15. Minnesota Statutes 2010, section 402A.20, is amended to read: 280.25402A.20 COUNCIL. 280.26    Subdivision 1. Council. (a) The State-County Results, Accountability, and Service 280.27Delivery Redesign Council is established. Appointed council members must be appointed 280.28by their respective agencies, associations, or governmental units by November 1, 2009. 280.29The council shall be cochaired by the commissioner of human services, or designee, and a 280.30county representative from paragraph (b), clause (4) or (5), appointed by the Association 280.31of Minnesota Counties. Recommendations of the council must be approved by a majority 280.32of the new text begin voting new text end council members. The provisions of section 15.059 do not apply to this 280.33council, and this council does not expire. 280.34(b) The council must consist of the following members: 281.1(1) two legislators appointed by the speaker of the house, one from the minority 281.2and one from the majority; 281.3(2) two legislators appointed by the Senate Rules Committee, one from the majority 281.4and one from the minority; 281.5(3) the commissioner of human services, or designee, and three employees from 281.6the department; 281.7(4) two county commissioners appointed by the Association of Minnesota Counties; 281.8(5) two county representatives appointed by the Minnesota Association of County 281.9Social Service Administrators; 281.10(6) one representative appointed by AFSCME as a nonvoting member; and 281.11(7) one representative appointed by the Teamsters as a nonvoting member. 281.12(c) Administrative support to the council may be provided by the Association of 281.13Minnesota Counties and affiliates. 281.14(d) Member agencies and associations are responsible for initial and subsequent 281.15appointments to the council. 281.16    Subd. 2. Council duties. The council shall: 281.17(1) provide review of the new text begin service delivery new text end redesign processnew text begin , including proposed new text end 281.18new text begin memoranda of understanding to establish a service delivery authority to conduct and new text end 281.19new text begin administer experimental projects to test new methods and procedures of delivering new text end 281.20new text begin servicesnew text end ; 281.21(2) certify, in accordance with section 402A.30, subdivision 4, the formation of 281.22a service delivery authority, including the memorandum of understanding in section 281.23402A.30, subdivision 2, paragraph (b); 281.24(3) ensure the consistency of the memorandum of understanding entered into 281.25under section 402A.30, subdivision 2, paragraph (b), with the performance standards 281.26recommended by the steering committee and enacted by the legislature; 281.27(4)new text begin (2)new text end ensure the consistency of the memorandum of understanding, to the extent 281.28appropriate, ornew text begin withnew text end other memorandum of understanding entered into by other service 281.29delivery authorities; 281.30new text begin (3) review and make recommendations on applications from a service delivery new text end 281.31new text begin authority for waivers of statutory or rule program requirements that are needed for new text end 281.32new text begin flexibility to determine the most cost-effective means of achieving specified measurable new text end 281.33new text begin goals in a redesign of human services delivery;new text end 281.34(5)new text begin (4)new text end establish a process to take public input on the service delivery framework 281.35specified in the memorandum of understanding in section 402A.30, subdivision 2, 282.1paragraph (b)new text begin scope of essential services over which a service delivery authority has new text end 282.2new text begin jurisdictionnew text end ; 282.3(6)new text begin (5)new text end form work groups as necessary to carry out the duties of the council under the 282.4redesign; 282.5(7)new text begin (6)new text end serve as a forum for resolving conflicts among participating counties new text begin and new text end 282.6new text begin tribes new text end or between participating counties new text begin or tribes new text end and the commissioner of human services, 282.7provided nothing in this section is intended to create a formal binding legal process; 282.8(8)new text begin (7)new text end engage in the program improvement process established in section 402A.18, 282.9subdivision 3; and 282.10(9)new text begin (8)new text end identify and recommend incentives for counties new text begin and tribes new text end to participate in 282.11human servicesnew text begin service deliverynew text end authorities. 282.12    new text begin Subd. 3.new text end new text begin Program evaluation.new text end new text begin By December 15, 2014, the council shall request new text end 282.13new text begin consideration by the legislative auditor for a reevaluation under section 3.971, subdivision new text end 282.14new text begin 7, of those aspects of the program evaluation of human services administration reported new text end 282.15new text begin in January 2007 affected by this chapter.new text end 282.16    Sec. 16. new text begin [402A.35] DESIGNATION OF SERVICE DELIVERY AUTHORITY.new text end 282.17    new text begin Subdivision 1.new text end new text begin Requirements for establishing a service delivery authority.new text end 282.18new text begin (a) A county, tribe, or consortium of counties is eligible to establish a service delivery new text end 282.19new text begin authority if:new text end 282.20new text begin (1) the county, tribe, or consortium of counties is:new text end 282.21new text begin (i) a single county with a population of 55,000 or more;new text end 282.22new text begin (ii) a consortium of counties with a total combined population of 55,000 or more;new text end 282.23new text begin (iii) a consortium of four or more counties in reasonable geographic proximity new text end 282.24new text begin without regard to population; ornew text end 282.25new text begin (iv) one or more tribes with a total combined population of 25,000 or more.new text end 282.26new text begin The council may recommend that the commissioner of human services exempt a new text end 282.27new text begin single county, tribe, or consortium of counties from the minimum population standard if new text end 282.28new text begin the county, tribe, or consortium of counties can demonstrate that it can otherwise meet new text end 282.29new text begin the requirements of this chapter.new text end 282.30new text begin (b) A service delivery authority shall:new text end 282.31new text begin (1) comply with current state and federal law, including any existing federal or state new text end 282.32new text begin performance measures and performance measures under section 402A.15 when they are new text end 282.33new text begin enacted into law, except where waivers are approved by the commissioner. Nothing new text end 282.34new text begin in this subdivision requires the establishment of performance measures under section new text end 283.1new text begin 402A.15 prior to a service delivery authority participating in the service delivery redesign new text end 283.2new text begin under this chapter;new text end 283.3new text begin (2) define the scope of essential services over which the service delivery authority new text end 283.4new text begin has jurisdiction;new text end 283.5new text begin (3) designate a single administrative structure to oversee the delivery of those new text end 283.6new text begin services included in a proposal for a redesigned service or services and identify a single new text end 283.7new text begin administrative agent for purposes of contact and communication with the department;new text end 283.8new text begin (4) identify the waivers from statutory or rule program requirements that are needed new text end 283.9new text begin to ensure greater local control and flexibility to determine the most cost-effective means of new text end 283.10new text begin achieving specified measurable goals that the participating service delivery authority is new text end 283.11new text begin expected to achieve;new text end 283.12new text begin (5) set forth a reasonable level of targeted reductions in overhead and administrative new text end 283.13new text begin costs for each service delivery authority participating in the service delivery redesign; andnew text end 283.14new text begin (6) set forth the terms under which a county, tribe, or consortium of counties may new text end 283.15new text begin withdraw from participation.new text end 283.16new text begin (c) Once a county, tribe, or consortium of counties establishes a service delivery new text end 283.17new text begin authority, no county, tribe, or consortium of counties that is a member of the service new text end 283.18new text begin delivery authority may participate as a member of any other service delivery authority. new text end 283.19new text begin The service delivery authority may allow an additional county, a tribe, or a consortium of new text end 283.20new text begin counties to join the service delivery authority subject to the approval of the council and new text end 283.21new text begin the commissioner.new text end 283.22new text begin (d) Nothing in this chapter precludes local governments from using sections 465.81 new text end 283.23new text begin and 465.82 to establish procedures for local governments to merge, with the consent new text end 283.24new text begin of the voters. Nothing in this chapter limits the authority of a county board or tribal new text end 283.25new text begin council to enter into contractual agreements for services not covered by the provisions new text end 283.26new text begin of a memorandum of understanding establishing a service delivery authority with other new text end 283.27new text begin agencies or with other units of government.new text end 283.28    new text begin Subd. 2.new text end new text begin Relief from statutory requirements.new text end new text begin (a) Unless otherwise identified in new text end 283.29new text begin the memorandum of understanding, any county, tribe, or consortium of counties forming a new text end 283.30new text begin service delivery authority is exempt from the provisions of sections 245.465; 245.4835; new text end 283.31new text begin 245.4874; 245.492, subdivision 2; 245.4932; 256F.13; 256J.626, subdivision 2, paragraph new text end 283.32new text begin (b); and 256M.30.new text end 283.33new text begin (b) This subdivision does not preclude any county, tribe, or consortium of counties new text end 283.34new text begin forming a service delivery authority from requesting additional waivers from statutory and new text end 283.35new text begin rule requirements to ensure greater local control and flexibility.new text end 283.36    new text begin Subd. 3.new text end new text begin Duties.new text end new text begin The service delivery authority shall:new text end 284.1new text begin (1) within the scope of essential services set forth in the memorandum of new text end 284.2new text begin understanding establishing the authority, carry out the responsibilities required of local new text end 284.3new text begin agencies under chapter 393 and human services boards under chapter 402;new text end 284.4new text begin (2) manage the public resources devoted to human services and other public services new text end 284.5new text begin delivered or purchased by the counties or tribes that are subsidized or regulated by the new text end 284.6new text begin Department of Human Services under chapters 245 to 261;new text end 284.7new text begin (3) employ staff to assist in carrying out its duties;new text end 284.8new text begin (4) develop and maintain a continuity of operations plan to ensure the continued new text end 284.9new text begin operation or resumption of essential human services functions in the event of any business new text end 284.10new text begin interruption according to local, state, and federal emergency planning requirements;new text end 284.11new text begin (5) receive and expend funds received for the redesign process under the new text end 284.12new text begin memorandum of understanding;new text end 284.13new text begin (6) plan and deliver services directly or through contract with other governmental, new text end 284.14new text begin tribal, or nongovernmental providers;new text end 284.15new text begin (7) rent, purchase, sell, and otherwise dispose of real and personal property as new text end 284.16new text begin necessary to carry out the redesign; andnew text end 284.17new text begin (8) carry out any other service designated as a responsibility of a county.new text end 284.18    new text begin Subd. 4.new text end new text begin Process for establishing a service delivery authority.new text end new text begin (a) The county, new text end 284.19new text begin tribe, or consortium of counties meeting the requirements of section 402A.30 and new text end 284.20new text begin proposing to establish a service delivery authority shall present to the council:new text end 284.21new text begin (1) in conjunction with the commissioner, a proposed memorandum of understanding new text end 284.22new text begin meeting the requirements of subdivision 1, paragraph (b), and outlining:new text end 284.23new text begin (i) the details of the proposal;new text end 284.24new text begin (ii) the state, tribal, and local resources, which may include, but are not limited to, new text end 284.25new text begin funding, administrative and technology support, and other requirements necessary for new text end 284.26new text begin the service delivery authority; andnew text end 284.27new text begin (iii) the relief available to the service delivery authority if the resource commitments new text end 284.28new text begin identified in item (ii) are not met; andnew text end 284.29new text begin (2) a board resolution from the board of commissioners of each participating county new text end 284.30new text begin stating the county's intent to participate, or in the case of a tribe, a resolution from tribal new text end 284.31new text begin government, stating the tribe's intent to participate.new text end 284.32new text begin (b) After the council has considered and recommended approval of a proposed new text end 284.33new text begin memorandum of understanding, the commissioner may finalize and execute the new text end 284.34new text begin memorandum of understanding.new text end 284.35    new text begin Subd. 5.new text end new text begin Commissioner authority to seek waivers.new text end new text begin The commissioner may use the new text end 284.36new text begin authority under section 256.01, subdivision 2, paragraph (l), to grant waivers identified as new text end 285.1new text begin part of a proposed service delivery authority under subdivision 1, paragraph (b), clause new text end 285.2new text begin (4), except that waivers granted under this section must be approved by the council under new text end 285.3new text begin section 402A.20 rather than the Legislative Advisory Committee.new text end 285.4    Sec. 17. new text begin ALIGNMENT OF VERIFICATION AND REDETERMINATION new text end 285.5new text begin POLICIES.new text end 285.6new text begin The commissioner of human services shall develop recommendations to align new text end 285.7new text begin eligibility verification procedures for all health care, economic assistance, food support, new text end 285.8new text begin child support enforcement, and child care programs. The commissioner shall report back new text end 285.9new text begin to the chairs of the legislative committees with jurisdiction over these issues by January new text end 285.10new text begin 15, 2012, with recommendations and draft legislation to implement the alignment of new text end 285.11new text begin eligibility verifications.new text end 285.12    Sec. 18. new text begin ALTERNATIVE STRATEGIES FOR CERTAIN new text end 285.13new text begin REDETERMINATIONS.new text end 285.14new text begin The commissioner of human services shall develop and implement by January 15, new text end 285.15new text begin 2012, a simplified process to redetermine eligibility for recipient populations in the medical new text end 285.16new text begin assistance, Minnesota supplemental aid, food support, and group residential housing new text end 285.17new text begin programs who are eligible based upon disability, age, or chronic medical conditions, and new text end 285.18new text begin who are expected to experience minimal change in income or assets from month to month. new text end 285.19new text begin The commissioner shall apply for any federal waivers needed to implement this section.new text end 285.20    Sec. 19. new text begin REQUEST FOR PROPOSALS; COMBINED ONLINE APPLICATION.new text end 285.21new text begin (a) The commissioner of human services shall issue a request for proposals for a new text end 285.22new text begin contract to implement a phased-in integrated online eligibility and application portal for new text end 285.23new text begin health care programs, if federal matching funds are available. The health care portal must new text end 285.24new text begin be developed in phases with the capacity to integrate food support, cash assistance, and new text end 285.25new text begin child care programs as funds are available. The request for proposals must require that the new text end 285.26new text begin system recommended and implemented by the contractor:new text end 285.27new text begin (1) streamline eligibility determination and case processing in the state to support new text end 285.28new text begin statewide eligibility processing;new text end 285.29new text begin (2) enable interested persons to determine eligibility for each program, and to apply new text end 285.30new text begin for programs online in a manner that the applicant will be asked only those questions that new text end 285.31new text begin relate to the programs the person is applying for;new text end 285.32new text begin (3) leverage technology that has been operational in production in other similar new text end 285.33new text begin state environments; andnew text end 286.1new text begin (4) include Web-based application and worker application processing support and new text end 286.2new text begin opportunity for expansion.new text end 286.3new text begin (b) If responses to the request for proposals meet the requirements set forth, the new text end 286.4new text begin commissioner shall enter into a contract for the services specified in paragraph (a) by new text end 286.5new text begin January 31, 2012. The contract may incorporate a performance-based vendor financing new text end 286.6new text begin option whereby the vendor shares the risk of the project's success. If the commissioner new text end 286.7new text begin determines there is no adequate response to the request for proposals, the commissioner new text end 286.8new text begin shall report this to the chairs and ranking minority members of the legislative committees new text end 286.9new text begin with jurisdiction over health and human services prior to January 31, 2012.new text end 286.10new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end 286.11    Sec. 20. new text begin REPEALER.new text end 286.12new text begin (a)new text end new text begin Minnesota Statutes 2010, sections 402A.30; and 402A.45,new text end new text begin are repealed.new text end 286.13new text begin (b)new text end new text begin Minnesota Rules, part 9500.1243, subpart 3,new text end new text begin is repealed.new text end 286.14ARTICLE 8 286.15CHEMICAL AND MENTAL HEALTH 286.16    Section 1. Minnesota Statutes 2010, section 245.50, is amended to read: 286.17245.50 INTERSTATE CONTRACTS, MENTAL HEALTH, CHEMICAL 286.18HEALTHnew text begin , DETOXIFICATIONnew text end SERVICES. 286.19    Subdivision 1. Definitions. For purposes of this section, the following terms have 286.20the meanings given them. 286.21    (a) "Bordering state" means Iowa, North Dakota, South Dakota, or Wisconsin. 286.22    (b) "Receiving agency" means a public or private hospital, mental health center, 286.23chemical health treatment facility, new text begin detoxification facility, new text end or other person or organization 286.24which provides mental health ornew text begin ,new text end chemical healthnew text begin , or detoxificationnew text end services under this 286.25section to individuals from a state other than the state in which the agency is located. 286.26    (c) "Receiving state" means the state in which a receiving agency is located. 286.27    (d) "Sending agency" means a state or county agency which sends an individual to a 286.28bordering state for treatmentnew text begin or detoxificationnew text end under this section. 286.29    (e) "Sending state" means the state in which the sending agency is located. 286.30    Subd. 2. Purpose and authority. (a) The purpose of this section is to enable 286.31appropriate treatment new text begin or detoxification services new text end to be provided to individuals, across state 286.32lines from the individual's state of residence, in qualified facilities that are closer to the 286.33homes of individuals than are facilities available in the individual's home state. 287.1    (b) Unless prohibited by another law and subject to the exceptions listed in 287.2subdivision 3, a county board or the commissioner of human services may contract 287.3with an agency or facility in a bordering state for mental health ornew text begin ,new text end chemical healthnew text begin , or new text end 287.4new text begin detoxificationnew text end services for residents of Minnesota, and a Minnesota mental health ornew text begin ,new text end 287.5chemical healthnew text begin , or detoxificationnew text end agency or facility may contract to provide services to 287.6residents of bordering states. Except as provided in subdivision 5, a person who receives 287.7services in another state under this section is subject to the laws of the state in which 287.8services are provided. A person who will receive services in another state under this 287.9section must be informed of the consequences of receiving services in another state, 287.10including the implications of the differences in state laws, to the extent the individual will 287.11be subject to the laws of the receiving state. 287.12    Subd. 3. Exceptions. A contract may not be entered into under this section for 287.13services to persons who: 287.14    (1) are serving a sentence after conviction of a criminal offense; 287.15    (2) are on probation or parole; 287.16    (3) are the subject of a presentence investigation; or 287.17    (4) have been committed involuntarily in Minnesota under chapter 253B for 287.18treatment of mental illness or chemical dependency, except as provided under subdivision 287.195. 287.20    Subd. 4. Contracts. Contracts entered into under this section must, at a minimum: 287.21    (1) describe the services to be provided; 287.22    (2) establish responsibility for the costs of services; 287.23    (3) establish responsibility for the costs of transporting individuals receiving 287.24services under this section; 287.25    (4) specify the duration of the contract; 287.26    (5) specify the means of terminating the contract; 287.27    (6) specify the terms and conditions for refusal to admit or retain an individual; and 287.28    (7) identify the goals to be accomplished by the placement of an individual under 287.29this section. 287.30    Subd. 5. Special contracts; bordering states. (a) An individual who is detained, 287.31committed, or placed on an involuntary basis under chapter 253B may be confined or 287.32treated in a bordering state pursuant to a contract under this section. An individual 287.33who is detained, committed, or placed on an involuntary basis under the civil law of a 287.34bordering state may be confined or treated in Minnesota pursuant to a contract under 287.35this section. A peace or health officer who is acting under the authority of the sending 287.36state may transport an individual to a receiving agency that provides services pursuant to 288.1a contract under this section and may transport the individual back to the sending state 288.2under the laws of the sending state. Court orders valid under the law of the sending state 288.3are granted recognition and reciprocity in the receiving state for individuals covered by 288.4a contract under this section to the extent that the court orders relate to confinement for 288.5treatment or care of mental illness ornew text begin ,new text end chemical dependencynew text begin , or detoxificationnew text end . Such 288.6treatment or care may address other conditions that may be co-occurring with the mental 288.7illness or chemical dependency. These court orders are not subject to legal challenge in 288.8the courts of the receiving state. Individuals who are detained, committed, or placed under 288.9the law of a sending state and who are transferred to a receiving state under this section 288.10continue to be in the legal custody of the authority responsible for them under the law 288.11of the sending state. Except in emergencies, those individuals may not be transferred, 288.12removed, or furloughed from a receiving agency without the specific approval of the 288.13authority responsible for them under the law of the sending state. 288.14    (b) While in the receiving state pursuant to a contract under this section, an 288.15individual shall be subject to the sending state's laws and rules relating to length of 288.16confinement, reexaminations, and extensions of confinement. No individual may be sent 288.17to another state pursuant to a contract under this section until the receiving state has 288.18enacted a law recognizing the validity and applicability of this section. 288.19    (c) If an individual receiving services pursuant to a contract under this section leaves 288.20the receiving agency without permission and the individual is subject to involuntary 288.21confinement under the law of the sending state, the receiving agency shall use all 288.22reasonable means to return the individual to the receiving agency. The receiving agency 288.23shall immediately report the absence to the sending agency. The receiving state has the 288.24primary responsibility for, and the authority to direct, the return of these individuals 288.25within its borders and is liable for the cost of the action to the extent that it would be 288.26liable for costs of its own resident. 288.27    (d) Responsibility for payment for the cost of care remains with the sending agency. 288.28    (e) This subdivision also applies to county contracts under subdivision 2 which 288.29include emergency care and treatment provided to a county resident in a bordering state. 288.30    (f) If a Minnesota resident is admitted to a facility in a bordering state under this 288.31chapter, a physician, licensed psychologist who has a doctoral degree in psychology, or 288.32an advance practice registered nurse certified in mental health, who is licensed in the 288.33bordering state, may act as an examiner under sections 253B.07, 253B.08, 253B.092, 288.34253B.12 , and 253B.17 subject to the same requirements and limitations in section 288.35253B.02, subdivision 7 . Such examiner may initiate an emergency hold under section 288.36253B.05 on a Minnesota resident who is in a hospital that is under contract with a 289.1Minnesota governmental entity under this section provided the resident, in the opinion of 289.2the examiner, meets the criteria in section 253B.05. 289.3    new text begin (g) This section shall apply to detoxification services that are unrelated to treatment new text end 289.4new text begin whether the services are provided on a voluntary or involuntary basis.new text end 289.5    Sec. 2. Minnesota Statutes 2010, section 246B.10, is amended to read: 289.6246B.10 LIABILITY OF COUNTY; REIMBURSEMENT. 289.7    The civilly committed sex offender's county shall pay to the state a portion of the 289.8cost of care provided in the Minnesota sex offender program to a civilly committed sex 289.9offender who has legally settled in that county. A county's payment must be made from 289.10the county's own sources of revenue and payments must equal tennew text begin 25new text end percent of the cost of 289.11care, as determined by the commissioner, for each day or portion of a day, that the civilly 289.12committed sex offender spends at the facility. If payments received by the state under this 289.13chapter exceed 90new text begin 75new text end percent of the cost of care, the county is responsible for paying the 289.14state the remaining amount. The county is not entitled to reimbursement from the civilly 289.15committed sex offender, the civilly committed sex offender's estate, or from the civilly 289.16committed sex offender's relatives, except as provided in section 246B.07. 289.17new text begin EFFECTIVE DATE.new text end new text begin This section is effective for all individuals who are civilly new text end 289.18new text begin committed to the Minnesota sex offender program on or after August 1, 2011.new text end 289.19    Sec. 3. Minnesota Statutes 2010, section 252.025, subdivision 7, is amended to read: 289.20    Subd. 7. Minnesota extended treatment options. The commissioner shall develop 289.21by July 1, 1997, the Minnesota extended treatment options to serve Minnesotans who 289.22have developmental disabilities and exhibit severe behaviors which present a risk to 289.23public safety. This program is statewide and must provide specialized residential services 289.24in Cambridge and an array of community-based services with sufficient levels of care 289.25and a sufficient number of specialists to ensure that individuals referred to the program 289.26receive the appropriate care. The individuals working in the community-based services 289.27under this section are state employees supervised by the commissioner of human services. 289.28No new text begin midcontract new text end layoffs shall occur as a result of restructuring under this sectionnew text begin , but new text end 289.29new text begin layoffs may occur as a normal consequence of a low census or closure of the facility new text end 289.30new text begin due to decreased censusnew text end . 290.1    Sec. 4. Minnesota Statutes 2010, section 253B.212, is amended to read: 290.2253B.212 COMMITMENT; RED LAKE BAND OF CHIPPEWA INDIANSnew text begin ; new text end 290.3new text begin WHITE EARTH BAND OF OJIBWEnew text end . 290.4    Subdivision 1. Cost of care; commitment by tribal court ordernew text begin ; Red Lake new text end 290.5new text begin Band of Chippewa Indiansnew text end . The commissioner of human services may contract with 290.6and receive payment from the Indian Health Service of the United States Department of 290.7Health and Human Services for the care and treatment of those members of the Red 290.8Lake Band of Chippewa Indians who have been committed by tribal court order to the 290.9Indian Health Service for care and treatment of mental illness, developmental disability, or 290.10chemical dependency. The contract shall provide that the Indian Health Service may not 290.11transfer any person for admission to a regional center unless the commitment procedure 290.12utilized by the tribal court provided due process protections similar to those afforded 290.13by sections 253B.05 to 253B.10. 290.14    new text begin Subd. 1a.new text end new text begin Cost of care; commitment by tribal court order; White Earth Band of new text end 290.15new text begin Ojibwe Indians.new text end new text begin The commissioner of human services may contract with and receive new text end 290.16new text begin payment from the Indian Health Service of the United States Department of Health and new text end 290.17new text begin Human Services for the care and treatment of those members of the White Earth Band new text end 290.18new text begin of Ojibwe Indians who have been committed by tribal court order to the Indian Health new text end 290.19new text begin Service for care and treatment of mental illness, developmental disability, or chemical new text end 290.20new text begin dependency. The tribe may also contract directly with the commissioner for treatment new text end 290.21new text begin of those members of the White Earth Band who have been committed by tribal court new text end 290.22new text begin order to the White Earth Department of Health for care and treatment of mental illness, new text end 290.23new text begin developmental disability, or chemical dependency. The contract shall provide that the new text end 290.24new text begin Indian Health Service and the White Earth Band shall not transfer any person for admission new text end 290.25new text begin to a regional center unless the commitment procedure utilized by the tribal court provided new text end 290.26new text begin due process protections similar to those afforded by sections new text end new text begin to new text end new text begin .new text end 290.27    Subd. 2. Effect given to tribal commitment order. When, under an agreement 290.28entered into pursuant to subdivision 1new text begin subdivisions 1 or 1anew text end , the Indian Health Service 290.29applies to a regional center for admission of a person committed to the jurisdiction of the 290.30health service by the tribal court as a person who is mentally ill, developmentally disabled, 290.31or chemically dependent, the commissioner may treat the patient with the consent of 290.32the Indian Health Service. 290.33A person admitted to a regional center pursuant to this section has all the rights 290.34accorded by section 253B.03. In addition, treatment reports, prepared in accordance with 290.35the requirements of section 253B.12, subdivision 1, shall be filed with the Indian Health 290.36Service within 60 days of commencement of the patient's stay at the facility. A subsequent 291.1treatment report shall be filed with the Indian Health Service within six months of the 291.2patient's admission to the facility or prior to discharge, whichever comes first. Provisional 291.3discharge or transfer of the patient may be authorized by the head of the treatment facility 291.4only with the consent of the Indian Health Service. Discharge from the facility to the 291.5Indian Health Service may be authorized by the head of the treatment facility after notice 291.6to and consultation with the Indian Health Service. 291.7    Sec. 5. Minnesota Statutes 2010, section 254B.03, subdivision 1, is amended to read: 291.8    Subdivision 1. Local agency duties. (a) Every local agency shall provide chemical 291.9dependency services to persons residing within its jurisdiction who meet criteria 291.10established by the commissioner for placement in a chemical dependency residential 291.11or nonresidential treatment servicenew text begin subject to the limitations on residential chemical new text end 291.12new text begin dependency treatment in section 254B.04, subdivision 1new text end . Chemical dependency money 291.13must be administered by the local agencies according to law and rules adopted by the 291.14commissioner under sections 14.001 to 14.69. 291.15    (b) In order to contain costs, the commissioner of human services shall select eligible 291.16vendors of chemical dependency services who can provide economical and appropriate 291.17treatment. Unless the local agency is a social services department directly administered by 291.18a county or human services board, the local agency shall not be an eligible vendor under 291.19section 254B.05. The commissioner may approve proposals from county boards to provide 291.20services in an economical manner or to control utilization, with safeguards to ensure that 291.21necessary services are provided. If a county implements a demonstration or experimental 291.22medical services funding plan, the commissioner shall transfer the money as appropriate. 291.23    (c) A culturally specific vendor that provides assessments under a variance under 291.24Minnesota Rules, part 9530.6610, shall be allowed to provide assessment services to 291.25persons not covered by the variance. 291.26    Sec. 6. Minnesota Statutes 2010, section 254B.03, subdivision 4, is amended to read: 291.27    Subd. 4. Division of costs. Except for services provided by a county under 291.28section 254B.09, subdivision 1, or services provided under section 256B.69 or 256D.03, 291.29subdivision 4 , paragraph (b), the county shall, out of local money, pay the state for 291.3016.14new text begin 22.95new text end percent of the cost of chemical dependency services, including those services 291.31provided to persons eligible for medical assistance under chapter 256B and general 291.32assistance medical care under chapter 256D. Counties may use the indigent hospitalization 291.33levy for treatment and hospital payments made under this section. 16.14new text begin 22.95new text end percent 291.34of any state collections from private or third-party pay, less 15 percent for the cost of 292.1payment and collections, must be distributed to the county that paid for a portion of the 292.2treatment under this section. 292.3new text begin EFFECTIVE DATE.new text end new text begin This section is effective for claims processed beginning new text end 292.4new text begin July 1, 2011.new text end 292.5    Sec. 7. Minnesota Statutes 2010, section 254B.04, subdivision 1, is amended to read: 292.6    Subdivision 1. Eligibility. (a) Persons eligible for benefits under Code of Federal 292.7Regulations, title 25, part 20, persons eligible for medical assistance benefits under 292.8sections 256B.055, 256B.056, and 256B.057, subdivisions 1, 2, 5, and 6, or who meet 292.9the income standards of section 256B.056, subdivision 4, and persons eligible for general 292.10assistance medical care under section 256D.03, subdivision 3, are entitled to chemical 292.11dependency fund servicesnew text begin subject to the following limitations: (1) no more than three new text end 292.12new text begin residential chemical dependency treatment episodes for the same person in a four-year new text end 292.13new text begin period of time unless the person meets the criteria established by the commissioner of new text end 292.14new text begin human services; and (2) no more than four residential chemical dependency treatment new text end 292.15new text begin episodes in a lifetime unless the person meets the criteria established by the commissioner new text end 292.16new text begin of human servicesnew text end . State money appropriated for this paragraph must be placed in a 292.17separate account established for this purpose. 292.18Persons with dependent children who are determined to be in need of chemical 292.19dependency treatment pursuant to an assessment under section 626.556, subdivision 10, or 292.20a case plan under section 260C.201, subdivision 6, or 260C.212, shall be assisted by the 292.21local agency to access needed treatment services. Treatment services must be appropriate 292.22for the individual or family, which may include long-term care treatment or treatment in a 292.23facility that allows the dependent children to stay in the treatment facility. The county 292.24shall pay for out-of-home placement costs, if applicable. 292.25(b) A person not entitled to services under paragraph (a), but with family income 292.26that is less than 215 percent of the federal poverty guidelines for the applicable family 292.27size, shall be eligible to receive chemical dependency fund services within the limit 292.28of funds appropriated for this group for the fiscal year. If notified by the state agency 292.29of limited funds, a county must give preferential treatment to persons with dependent 292.30children who are in need of chemical dependency treatment pursuant to an assessment 292.31under section 626.556, subdivision 10, or a case plan under section 260C.201, subdivision 292.326 , or 260C.212. A county may spend money from its own sources to serve persons under 292.33this paragraph. State money appropriated for this paragraph must be placed in a separate 292.34account established for this purpose. 293.1(c) Persons whose income is between 215 percent and 412 percent of the federal 293.2poverty guidelines for the applicable family size shall be eligible for chemical dependency 293.3services on a sliding fee basis, within the limit of funds appropriated for this group for the 293.4fiscal year. Persons eligible under this paragraph must contribute to the cost of services 293.5according to the sliding fee scale established under subdivision 3. A county may spend 293.6money from its own sources to provide services to persons under this paragraph. State 293.7money appropriated for this paragraph must be placed in a separate account established 293.8for this purpose. 293.9new text begin EFFECTIVE DATE.new text end new text begin This section is effective for all chemical dependency new text end 293.10new text begin residential treatment beginning on or after July 1, 2011.new text end 293.11    Sec. 8. Minnesota Statutes 2010, section 254B.04, is amended by adding a subdivision 293.12to read: 293.13    new text begin Subd. 2a.new text end new text begin Eligibility for treatment in residential settings.new text end new text begin Notwithstanding new text end 293.14new text begin provisions of Minnesota Rules, part 9530.6622, subparts 5 and 6, related to an assessor's new text end 293.15new text begin discretion in making placements to residential treatment settings, a person eligible for new text end 293.16new text begin services under this section must score at level 4 on assessment dimensions related to new text end 293.17new text begin relapse, continued use, and recovery environment in order to be assigned to services with new text end 293.18new text begin a room and board component reimbursed under this section.new text end 293.19    Sec. 9. Minnesota Statutes 2010, section 254B.06, subdivision 2, is amended to read: 293.20    Subd. 2. Allocation of collections. The commissioner shall allocate all federal 293.21financial participation collections to a special revenue account. The commissioner shall 293.22allocate 83.86new text begin 77.05new text end percent of patient payments and third-party payments to the special 293.23revenue account and 16.14new text begin 22.95new text end percent to the county financially responsible for the 293.24patient. 293.25new text begin EFFECTIVE DATE.new text end new text begin This section is effective for claims processed beginning new text end 293.26new text begin July 1, 2011.new text end 293.27    Sec. 10. Minnesota Statutes 2010, section 256B.0625, subdivision 41, is amended to 293.28read: 293.29    Subd. 41. Residential services for children with severe emotional disturbance. 293.30Medical assistance covers rehabilitative services in accordance with section 256B.0945 293.31that are provided by a countynew text begin or an American Indian tribenew text end through a residential facility, 294.1for children who have been diagnosed with severe emotional disturbance and have been 294.2determined to require the level of care provided in a residential facility. 294.3new text begin EFFECTIVE DATE.new text end new text begin This section is effective October 1, 2011.new text end 294.4    Sec. 11. Minnesota Statutes 2010, section 256B.0945, subdivision 4, is amended to 294.5read: 294.6    Subd. 4. Payment rates. (a) Notwithstanding sections 256B.19 and 256B.041, 294.7payments to counties for residential services provided by a residential facility shall only 294.8be made of federal earnings for services provided under this section, and the nonfederal 294.9share of costs for services provided under this section shall be paid by the county from 294.10sources other than federal funds or funds used to match other federal funds. Payment to 294.11counties for services provided according to this section shall be a proportion of the per 294.12day contract rate that relates to rehabilitative mental health services and shall not include 294.13payment for costs or services that are billed to the IV-E program as room and board. 294.14    (b) Per diem rates paid to providers under this section by prepaid plans shall be 294.15the proportion of the per-day contract rate that relates to rehabilitative mental health 294.16services and shall not include payment for group foster care costs or services that are 294.17billed to the county of financial responsibility. Services provided in facilities located in 294.18bordering states are eligible for reimbursement on a fee-for-service basis only as described 294.19in paragraph (a) and are not covered under prepaid health plans. 294.20    (c) new text begin Payment for mental health rehabilitative services provided under this section by new text end 294.21new text begin or under contract with an American Indian tribe or tribal organization or by agencies new text end 294.22new text begin operated by or under contract with an American Indian tribe or tribal organization must new text end 294.23new text begin be made according to section 256B.0625, subdivision 34, or other relevant federally new text end 294.24new text begin approved rate-setting methodology.new text end 294.25new text begin (d) new text end The commissioner shall set aside a portion not to exceed five percent of the 294.26federal funds earned for county expenditures under this section to cover the state costs of 294.27administering this section. Any unexpended funds from the set-aside shall be distributed 294.28to the counties in proportion to their earnings under this section. 294.29new text begin EFFECTIVE DATE.new text end new text begin This section is effective October 1, 2011.new text end 294.30    Sec. 12. new text begin COMMUNITY MENTAL HEALTH SERVICES; USE OF new text end 294.31new text begin BEHAVIORAL HEALTH HOSPITALS.new text end 294.32new text begin The commissioner shall issue a written report to the chairs and ranking minority new text end 294.33new text begin members of the house and senate committees with jurisdiction of health and human new text end 295.1new text begin services by December 31, 2011, on how the community behavioral health hospital new text end 295.2new text begin facilities will be fully utilized to meet the mental health needs of regions in which the new text end 295.3new text begin hospitals are located. The commissioner must consult with the regional planning work new text end 295.4new text begin groups for adult mental health and must include the recommendations of the work groups new text end 295.5new text begin in the legislative report. The report must address future use of community behavioral new text end 295.6new text begin health hospitals that are not certified as Medicaid eligible by CMS or have a less than 65 new text end 295.7new text begin percent licensed bed occupancy rate, and using the facilities for another purpose that will new text end 295.8new text begin meet the mental health needs of residents of the region. The regional planning work new text end 295.9new text begin groups shall work with the commissioner to prioritize the needs of their regions. These new text end 295.10new text begin priorities, by region, must be included in the commissioner's report to the legislature.new text end 295.11    Sec. 13. new text begin INTEGRATED DUAL DIAGNOSIS TREATMENT.new text end 295.12new text begin (a) The commissioner shall require individuals who perform chemical dependency new text end 295.13new text begin assessments or mental health assessments to use approved screening tools in order to new text end 295.14new text begin identify whether an individual who is the subject of the assessment has a co-occurring new text end 295.15new text begin mental health or chemical dependency disorder. Screening for co-occurring disorders must new text end 295.16new text begin begin no later than December 31, 2011.new text end 295.17new text begin (b) No later than October 1, 2011, the commissioner shall develop and implement a new text end 295.18new text begin certification process for integrated dual diagnosis treatment providers.new text end 295.19new text begin (c) No later than December 31, 2011, the commissioner shall develop and implement new text end 295.20new text begin a referral system so that individuals who, at screening, are identified with co-occurring new text end 295.21new text begin disorders are referred to certified integrated dual diagnosis treatment providers.new text end 295.22new text begin (d) The commissioner shall apply for any federal waivers necessary to secure, to the new text end 295.23new text begin extent allowed by law, federal financial participation for the provision of integrated dual new text end 295.24new text begin diagnosis treatment to persons with co-occurring disorders.new text end 295.25    Sec. 14. new text begin STATE-OPERATED SERVICES FACILITIES.new text end 295.26    new text begin (a) The commissioner shall close the Willmar Community Behavioral Health new text end 295.27new text begin Hospital no later than October 1, 2011.new text end 295.28    new text begin (b) The commissioner shall present a plan to the legislative committees with new text end 295.29new text begin jurisdiction over health and human services finance no later than January 1, 2012, on new text end 295.30new text begin how the department will:new text end 295.31    new text begin (1) accommodate the mental health needs of clients impacted by the closure or new text end 295.32new text begin redesign of any state-operated services facilities; andnew text end 295.33    new text begin (2) accommodate the state employees adversely affected by the closure or redesign new text end 295.34new text begin of any state-operated services facilities.new text end 296.1    Sec. 15. new text begin REGIONAL TREATMENT CENTERS; EMPLOYEES; REPORT.new text end 296.2new text begin (a) No layoffs shall occur as a result of restructuring services at the Anoka-Metro new text end 296.3new text begin Regional Treatment Center.new text end 296.4new text begin (b) The commissioner shall issue a report to the legislative committees with new text end 296.5new text begin jurisdiction over health and human services finance no later than December 31, 2011, new text end 296.6new text begin which provides the number of employees in management positions at the Anoka-Metro new text end 296.7new text begin Regional Treatment Center and the Minnesota Security Hospital at St. Peter and the ratio new text end 296.8new text begin of management to direct-care staff for each facility.new text end 296.9    Sec. 16. new text begin COMMISSIONER'S CRITERIA FOR RESIDENTIAL TREATMENT.new text end 296.10new text begin The commissioner shall develop specific criteria to approve treatment for individuals new text end 296.11new text begin who require residential chemical dependency treatment in excess of the maximum allowed new text end 296.12new text begin in section 254B.04, subdivision 1, due to co-occurring disorders, including disorders new text end 296.13new text begin related to cognition, traumatic brain injury, or documented disability. Criteria shall be new text end 296.14new text begin developed for use no later than October 1, 2011.new text end 296.15    Sec. 17. new text begin REPEALER.new text end 296.16new text begin Laws 2009, chapter 79, article 3, section 18, as amended by Laws 2010, First Special new text end 296.17new text begin Session chapter 1, article 19, section 19, new text end new text begin is repealed.new text end 296.18ARTICLE 9 296.19HEALTH AND HUMAN SERVICES APPROPRIATIONS 296.20 Section 1. new text begin SUMMARY OF APPROPRIATIONS.new text end
296.21new text begin The amounts shown in this section summarize direct appropriations, by fund, made new text end 296.22new text begin in this article.new text end 296.23 new text begin 2012new text end new text begin 2013new text end new text begin Totalnew text end 296.24 new text begin Generalnew text end new text begin $new text end new text begin 5,646,994,000new text end new text begin $new text end new text begin 5,159,920,000new text end new text begin $new text end new text begin 10,806,914,000new text end 296.25 296.26 new text begin State Government Special new text end new text begin Revenuenew text end new text begin 63,198,000new text end new text begin 63,154,000new text end new text begin 126,352,000new text end 296.27 new text begin Health Care Accessnew text end new text begin 400,917,000new text end new text begin 409,880,000new text end new text begin 810,797,000new text end 296.28 new text begin Federal TANFnew text end new text begin 274,091,000new text end new text begin 282,814,000new text end new text begin 556,905,000new text end 296.29 new text begin Lottery Prize Fundnew text end new text begin 1,665,000new text end new text begin 1,665,000new text end new text begin 3,330,000new text end 296.30 new text begin Totalnew text end new text begin $new text end new text begin 6,386,865,000new text end new text begin $new text end new text begin 5,917,433,000new text end new text begin $new text end new text begin 12,304,298,000new text end
296.31 Sec. 2. new text begin HUMAN SERVICES APPROPRIATIONS.new text end
296.32new text begin The sums shown in the columns marked "Appropriations" are appropriated to the new text end 296.33new text begin agencies and for the purposes specified in this article. The appropriations are from the new text end 297.1new text begin general fund, or another named fund, and are available for the fiscal years indicated new text end 297.2new text begin for each purpose. The figures "2012" and "2013" used in this article mean that the new text end 297.3new text begin appropriations listed under them are available for the fiscal year ending June 30, 2012, or new text end 297.4new text begin June 30, 2013, respectively. "The first year" is fiscal year 2012. "The second year" is fiscal new text end 297.5new text begin year 2013. "The biennium" is fiscal years 2012 and 2013.new text end 297.6 new text begin APPROPRIATIONSnew text end 297.7 new text begin Available for the Yearnew text end 297.8 new text begin Ending June 30new text end 297.9 new text begin 2012new text end new text begin 2013new text end
297.10 297.11 Sec. 3. new text begin COMMISSIONER OF HUMAN new text end new text begin SERVICESnew text end
297.12 new text begin Subdivision 1.new text end new text begin Total Appropriationnew text end new text begin $new text end new text begin 6,215,925,000new text end new text begin $new text end new text begin 5,756,045,000new text end
297.13 new text begin Appropriations by Fundnew text end 297.14 new text begin 2012new text end new text begin 2013new text end 297.15 new text begin Generalnew text end new text begin 5,564,174,000new text end new text begin 5,081,996,000new text end 297.16 297.17 new text begin State Government new text end new text begin Special Revenuenew text end new text begin 565,000new text end new text begin 565,000new text end 297.18 new text begin Health Care Accessnew text end new text begin 387,143,000new text end new text begin 400,718,000new text end 297.19 new text begin Federal TANFnew text end new text begin 262,378,000new text end new text begin 271,101,000new text end 297.20 new text begin Lottery Prize Fundnew text end new text begin 1,665,000new text end new text begin 1,665,000new text end
297.21new text begin Receipts for Systems Projects. new text end 297.22new text begin Appropriations and federal receipts for new text end 297.23new text begin information systems projects for MAXIS, new text end 297.24new text begin PRISM, MMIS, and SSIS must be deposited new text end 297.25new text begin in the state systems account authorized in new text end 297.26new text begin Minnesota Statutes, section 256.014. Money new text end 297.27new text begin appropriated for computer projects approved new text end 297.28new text begin by the Minnesota Office of Enterprise new text end 297.29new text begin Technology, funded by the legislature, new text end 297.30new text begin and approved by the commissioner of new text end 297.31new text begin Minnesota Management and Budget, may new text end 297.32new text begin be transferred from one project to another new text end 297.33new text begin and from development to operations as the new text end 297.34new text begin commissioner of human services considers new text end 297.35new text begin necessary. Any unexpended balance in new text end 297.36new text begin the appropriation for these projects does new text end 298.1new text begin not cancel but is available for ongoing new text end 298.2new text begin development and operations.new text end 298.3new text begin Nonfederal Share Transfers. new text end new text begin The new text end 298.4new text begin nonfederal share of activities for which new text end 298.5new text begin federal administrative reimbursement is new text end 298.6new text begin appropriated to the commissioner may be new text end 298.7new text begin transferred to the special revenue fund.new text end 298.8new text begin TANF Maintenance of Effort.new text end 298.9new text begin (a) In order to meet the basic maintenance new text end 298.10new text begin of effort (MOE) requirements of the TANF new text end 298.11new text begin block grant specified under Code of Federal new text end 298.12new text begin Regulations, title 45, section 263.1, the new text end 298.13new text begin commissioner may only report nonfederal new text end 298.14new text begin money expended for allowable activities new text end 298.15new text begin listed in the following clauses as TANF/MOE new text end 298.16new text begin expenditures:new text end 298.17new text begin (1) MFIP cash, diversionary work program, new text end 298.18new text begin and food assistance benefits under Minnesota new text end 298.19new text begin Statutes, chapter 256J;new text end 298.20new text begin (2) the child care assistance programs new text end 298.21new text begin under Minnesota Statutes, sections 119B.03 new text end 298.22new text begin and 119B.05, and county child care new text end 298.23new text begin administrative costs under Minnesota new text end 298.24new text begin Statutes, section 119B.15;new text end 298.25new text begin (3) state and county MFIP administrative new text end 298.26new text begin costs under Minnesota Statutes, chapters new text end 298.27new text begin 256J and 256K;new text end 298.28new text begin (4) state, county, and tribal MFIP new text end 298.29new text begin employment services under Minnesota new text end 298.30new text begin Statutes, chapters 256J and 256K;new text end 298.31new text begin (5) expenditures made on behalf of new text end 298.32new text begin noncitizen MFIP recipients who qualify new text end 298.33new text begin for the medical assistance without federal new text end 298.34new text begin financial participation program under new text end 299.1new text begin Minnesota Statutes, section 256B.06, new text end 299.2new text begin subdivision 4, paragraphs (d), (e), and (j);new text end 299.3new text begin (6) qualifying working family credit new text end 299.4new text begin expenditures under Minnesota Statutes, new text end 299.5new text begin section 290.0671; andnew text end 299.6new text begin (7) qualifying Minnesota education credit new text end 299.7new text begin expenditures under Minnesota Statutes, new text end 299.8new text begin section 290.0674.new text end 299.9new text begin (b) The commissioner shall ensure that new text end 299.10new text begin sufficient qualified nonfederal expenditures new text end 299.11new text begin are made each year to meet the state's new text end 299.12new text begin TANF/MOE requirements. For the activities new text end 299.13new text begin listed in paragraph (a), clauses (2) to new text end 299.14new text begin (7), the commissioner may only report new text end 299.15new text begin expenditures that are excluded from the new text end 299.16new text begin definition of assistance under Code of new text end 299.17new text begin Federal Regulations, title 45, section 260.31.new text end 299.18new text begin (c) For fiscal years beginning with state fiscal new text end 299.19new text begin year 2003, the commissioner shall assure new text end 299.20new text begin that the maintenance of effort used by the new text end 299.21new text begin commissioner of management and budget new text end 299.22new text begin for the February and November forecasts new text end 299.23new text begin required under Minnesota Statutes, section new text end 299.24new text begin 16A.103, contains expenditures under new text end 299.25new text begin paragraph (a), clause (1), equal to at least 16 new text end 299.26new text begin percent of the total required under Code of new text end 299.27new text begin Federal Regulations, title 45, section 263.1.new text end 299.28new text begin (d) Minnesota Statutes, section 256.011, new text end 299.29new text begin subdivision 3, which requires that federal new text end 299.30new text begin grants or aids secured or obtained under that new text end 299.31new text begin subdivision be used to reduce any direct new text end 299.32new text begin appropriations provided by law, do not apply new text end 299.33new text begin if the grants or aids are federal TANF funds.new text end 299.34new text begin (e) Notwithstanding any contrary provision new text end 299.35new text begin in this article, paragraph (a), clauses (1) to new text end 300.1new text begin (7), and paragraphs (b) to (d), expire June new text end 300.2new text begin 30, 2015.new text end 300.3new text begin Working Family Credit Expenditures new text end 300.4new text begin as TANF/MOE. new text end new text begin The commissioner may new text end 300.5new text begin claim as TANF maintenance of effort up to new text end 300.6new text begin $6,707,000 per year of working family credit new text end 300.7new text begin expenditures for fiscal years 2012 and 2013.new text end 300.8new text begin Working Family Credit Expenditures new text end 300.9new text begin to be Claimed for TANF/MOE. new text end new text begin The new text end 300.10new text begin commissioner may count the following new text end 300.11new text begin amounts of working family credit new text end 300.12new text begin expenditures as TANF/MOE:new text end 300.13new text begin (1) fiscal year 2012, $12,037,000;new text end 300.14new text begin (2) fiscal year 2013, $29,942,000;new text end 300.15new text begin (3) fiscal year 2014, $23,235,000; andnew text end 300.16new text begin (4) fiscal year 2015, $23,198,000.new text end 300.17new text begin Notwithstanding any contrary provision in new text end 300.18new text begin this article, this rider expires June 30, 2015.new text end 300.19new text begin TANF Transfer to Federal Child Care new text end 300.20new text begin and Development Fund.new text end new text begin (a) The following new text end 300.21new text begin TANF fund amounts are appropriated new text end 300.22new text begin to the commissioner for purposes of new text end 300.23new text begin MFIP/Transition Year Child Care Assistance new text end 300.24new text begin under Minnesota Statutes, section 119B.05:new text end 300.25new text begin (1) fiscal year 2012, $11,020,000;new text end 300.26new text begin (2) fiscal year 2013, $35,020,000;new text end 300.27new text begin (3) fiscal year 2014, $14,020,000; andnew text end 300.28new text begin (4) fiscal year 2015, $14,020,000.new text end 300.29new text begin (b) The commissioner shall authorize the new text end 300.30new text begin transfer of sufficient TANF funds to the new text end 300.31new text begin federal child care and development fund to new text end 300.32new text begin meet this appropriation and shall ensure that new text end 300.33new text begin all transferred funds are expended according new text end 301.1new text begin to federal child care and development fund new text end 301.2new text begin regulations.new text end 301.3new text begin Food Stamps Employment and Training new text end 301.4new text begin Funds. new text end new text begin (a) Notwithstanding Minnesota new text end 301.5new text begin Statutes, sections 256D.051, subdivisions 1a, new text end 301.6new text begin 6b, and 6c, and 256J.626, federal food stamps new text end 301.7new text begin employment and training funds received new text end 301.8new text begin as reimbursement for child care assistance new text end 301.9new text begin program expenditures must be deposited in new text end 301.10new text begin the general fund. The amount of funds must new text end 301.11new text begin be limited to $500,000 per year in fiscal new text end 301.12new text begin years 2012 through 2015, contingent upon new text end 301.13new text begin approval by the federal Food and Nutrition new text end 301.14new text begin Service.new text end 301.15new text begin (b) Consistent with the receipt of these new text end 301.16new text begin federal funds, the commissioner may new text end 301.17new text begin adjust the level of working family credit new text end 301.18new text begin expenditures claimed as TANF maintenance new text end 301.19new text begin of effort. Notwithstanding any contrary new text end 301.20new text begin provision in this article, this rider expires new text end 301.21new text begin June 30, 2015.new text end 301.22new text begin ARRA Food Support Benefit Increases. new text end 301.23new text begin The funds provided for food support benefit new text end 301.24new text begin increases under the Supplemental Nutrition new text end 301.25new text begin Assistance Program provisions of the new text end 301.26new text begin American Recovery and Reinvestment Act new text end 301.27new text begin (ARRA) of 2009 must be used for benefit new text end 301.28new text begin increases beginning July 1, 2009.new text end 301.29new text begin Supplemental Security Interim Assistance new text end 301.30new text begin Reimbursement Funds. new text end new text begin $2,800,000 of new text end 301.31new text begin uncommitted revenue available to the new text end 301.32new text begin commissioner of human services for SSI new text end 301.33new text begin advocacy and outreach services must be new text end 301.34new text begin transferred to and deposited into the general new text end 301.35new text begin fund by June 30, 2012.new text end 302.1 new text begin Subd. 2.new text end new text begin Central Office Operationsnew text end
302.2new text begin The amounts that may be spent from this new text end 302.3new text begin appropriation for each purpose are as follows:new text end 302.4 new text begin (a) new text end new text begin Operationsnew text end
302.5 new text begin Appropriations by Fundnew text end 302.6 new text begin Generalnew text end new text begin 81,458,000new text end new text begin 80,335,000new text end 302.7 new text begin Health Care Accessnew text end new text begin 11,742,000new text end new text begin 11,508,000new text end 302.8 302.9 new text begin State Government new text end new text begin Special Revenuenew text end new text begin 440,000new text end new text begin 440,000new text end 302.10 new text begin Federal TANFnew text end new text begin 222,000new text end new text begin 222,000new text end
302.11new text begin DHS Receipt Center Accounting. new text end new text begin The new text end 302.12new text begin commissioner is authorized to transfer new text end 302.13new text begin appropriations to, and account for DHS new text end 302.14new text begin receipt center operations in, the special new text end 302.15new text begin revenue fund.new text end 302.16new text begin Base Adjustment. new text end new text begin The general fund base new text end 302.17new text begin for fiscal year 2014 shall be increased by new text end 302.18new text begin $79,000. This adjustment is onetime.new text end 302.19 new text begin (b) new text end new text begin Children and Familiesnew text end
302.20 new text begin Appropriations by Fundnew text end 302.21 new text begin Generalnew text end new text begin 9,615,000new text end new text begin 9,417,000new text end 302.22 new text begin Federal TANFnew text end new text begin 2,160,000new text end new text begin 2,160,000new text end
302.23new text begin Financial Institution Data Match and new text end 302.24new text begin Payment of Fees. new text end new text begin The commissioner is new text end 302.25new text begin authorized to allocate up to $310,000 each new text end 302.26new text begin year in fiscal years 2012 and 2013 from the new text end 302.27new text begin PRISM special revenue account to make new text end 302.28new text begin payments to financial institutions in exchange new text end 302.29new text begin for performing data matches between account new text end 302.30new text begin information held by financial institutions new text end 302.31new text begin and the public authority's database of child new text end 302.32new text begin support obligors as authorized by Minnesota new text end 302.33new text begin Statutes, section 13B.06, subdivision 7.new text end 302.34 new text begin (c) new text end new text begin Health Carenew text end
303.1 new text begin Appropriations by Fundnew text end 303.2 new text begin Generalnew text end new text begin 16,284,000new text end new text begin 16,030,000new text end 303.3 new text begin Health Care Accessnew text end new text begin 22,574,000new text end new text begin 26,555,000new text end
303.4new text begin Minnesota Senior Health Options new text end 303.5new text begin Reimbursement. new text end new text begin Federal administrative new text end 303.6new text begin reimbursement resulting from the Minnesota new text end 303.7new text begin senior health options project is appropriated new text end 303.8new text begin to the commissioner for this activity.new text end 303.9new text begin Utilization Review. new text end new text begin Federal administrative new text end 303.10new text begin reimbursement resulting from prior new text end 303.11new text begin authorization and inpatient admission new text end 303.12new text begin certification by a professional review new text end 303.13new text begin organization shall be dedicated to the new text end 303.14new text begin commissioner for these purposes. A portion new text end 303.15new text begin of these funds must be used for activities to new text end 303.16new text begin decrease unnecessary pharmaceutical costs new text end 303.17new text begin in medical assistance.new text end 303.18new text begin Base Adjustment. new text end new text begin The general fund base new text end 303.19new text begin shall be decreased by $2,000 in fiscal year new text end 303.20new text begin 2014 and $114,000 in 2015.new text end 303.21new text begin The health care access fund base is decreased new text end 303.22new text begin by $16,000 in fiscal year 2014 and $142,000 new text end 303.23new text begin in 2015.new text end 303.24 new text begin (d) new text end new text begin Continuing Carenew text end
303.25 new text begin Appropriations by Fundnew text end 303.26 new text begin Generalnew text end new text begin 18,110,000new text end new text begin 18,011,000new text end 303.27 303.28 new text begin State Government new text end new text begin Special Revenuenew text end new text begin 125,000new text end new text begin 125,000new text end
303.29new text begin Base Adjustment. new text end new text begin The general fund base is new text end 303.30new text begin decreased by $259,000 in each of fiscal years new text end 303.31new text begin 2014 and 2015.new text end 303.32 new text begin (e) new text end new text begin Chemical and Mental Healthnew text end
303.33 new text begin Appropriations by Fundnew text end 303.34 new text begin Generalnew text end new text begin 4,194,000new text end new text begin 4,194,000new text end 303.35 new text begin Lottery Prizenew text end new text begin 157,000new text end new text begin 157,000new text end
304.1 new text begin Subd. 3.new text end new text begin Forecasted Programsnew text end
304.2new text begin The amounts that may be spent from this new text end 304.3new text begin appropriation for each purpose are as follows:new text end 304.4 new text begin (a) new text end new text begin MFIP/DWP Grantsnew text end
304.5 new text begin Appropriations by Fundnew text end 304.6 new text begin Generalnew text end new text begin 84,256,000new text end new text begin 91,212,000new text end 304.7 new text begin Federal TANFnew text end new text begin 84,425,000new text end new text begin 75,417,000new text end
304.8 new text begin (b) new text end new text begin MFIP Child Care Assistance Grantsnew text end new text begin 55,726,000new text end new text begin 26,652,000new text end
304.9 new text begin (c) new text end new text begin General Assistance Grantsnew text end new text begin 43,629,000new text end new text begin 42,440,000new text end
304.10new text begin General Assistance Standard. new text end new text begin The new text end 304.11new text begin commissioner shall set the monthly standard new text end 304.12new text begin of assistance for general assistance units new text end 304.13new text begin consisting of an adult recipient who is new text end 304.14new text begin childless and unmarried or living apart new text end 304.15new text begin from parents or a legal guardian at $203. new text end 304.16new text begin The commissioner may reduce this amount new text end 304.17new text begin according to Laws 1997, chapter 85, article new text end 304.18new text begin 3, section 54.new text end 304.19new text begin Emergency General Assistance. new text end new text begin The new text end 304.20new text begin amount appropriated for emergency general new text end 304.21new text begin assistance funds is limited to no more new text end 304.22new text begin than $7,889,812 in fiscal year 2012 and new text end 304.23new text begin $7,889,812 in fiscal year 2013. Funds new text end 304.24new text begin to counties shall be allocated by the new text end 304.25new text begin commissioner using the allocation method new text end 304.26new text begin specified in Minnesota Statutes, section new text end 304.27new text begin 256D.06.new text end 304.28 new text begin (d) new text end new text begin Minnesota Supplemental Aid Grantsnew text end new text begin 38,091,000new text end new text begin 39,092,000new text end
304.29new text begin Emergency Minnesota Supplemental new text end 304.30new text begin Aid Funds. new text end new text begin The amount appropriated for new text end 304.31new text begin emergency Minnesota supplemental aid new text end 304.32new text begin funds is limited to no more than $1,100,000 new text end 304.33new text begin in fiscal year 2012 and $1,100,000 in fiscal new text end 304.34new text begin year 2013. Funds to counties shall be new text end 305.1new text begin allocated by the commissioner using the new text end 305.2new text begin allocation method specified in Minnesota new text end 305.3new text begin Statutes, section 256D.46.new text end 305.4 new text begin (e) new text end new text begin Group Residential Housing Grantsnew text end new text begin 121,092,000new text end new text begin 129,250,000new text end
305.5 new text begin (f) new text end new text begin MinnesotaCare Grantsnew text end new text begin 351,927,000new text end new text begin 361,755,000new text end
305.6new text begin This appropriation is from the health care new text end 305.7new text begin access fund.new text end 305.8 new text begin (g) new text end new text begin GAMC Grantsnew text end new text begin 120,000,000new text end new text begin 280,000,000new text end
305.9new text begin Coordinated Care Delivery System.new text end new text begin This new text end 305.10new text begin appropriation is to fund coordinated care new text end 305.11new text begin delivery systems under Minnesota Statutes, new text end 305.12new text begin section 256D.031, subdivision 6.new text end 305.13new text begin Payments for Cost Settlements. new text end new text begin The new text end 305.14new text begin commissioner is authorized to use amounts new text end 305.15new text begin repaid to the general assistance medical care new text end 305.16new text begin program under Minnesota Statutes 2009 new text end 305.17new text begin Supplement, section 256D.03, subdivision new text end 305.18new text begin 3, to pay cost settlements for claims for new text end 305.19new text begin services provided prior to June 1, 2010. new text end 305.20new text begin Notwithstanding any contrary provision in new text end 305.21new text begin this article, this provision does not expire.new text end 305.22new text begin Base Adjustment.new text end new text begin The general fund base is new text end 305.23new text begin reduced by $120,000,000 in fiscal year 2014 new text end 305.24new text begin and by $280,000,000 in fiscal year 2015.new text end 305.25 new text begin (h) new text end new text begin Medical Assistance Grantsnew text end new text begin 4,253,018,000new text end new text begin 3,602,473,000new text end
305.26new text begin Managed Care Incentive Payments. new text end new text begin The new text end 305.27new text begin commissioner shall not make managed care new text end 305.28new text begin incentive payments for expanding preventive new text end 305.29new text begin services during fiscal years beginning July 1, new text end 305.30new text begin 2011 and July 1, 2012.new text end 305.31new text begin Reduction of Rates for Congregate new text end 305.32new text begin Living for Individuals with Lower Needs. new text end 305.33new text begin Beginning October 1, 2011, lead agencies new text end 306.1new text begin must reduce rates in effect on January 1, new text end 306.2new text begin 2011, by ten percent for individuals with new text end 306.3new text begin lower needs living in foster care settings new text end 306.4new text begin where the license holder does not share the new text end 306.5new text begin residence with recipients on the CADI, DD, new text end 306.6new text begin and TBI waivers and customized living new text end 306.7new text begin settings for CADI and TBI. Lead agencies new text end 306.8new text begin must adjust contracts within 60 days of the new text end 306.9new text begin effective date.new text end 306.10new text begin Reduction of Lead Agency Waiver new text end 306.11new text begin Allocations to Implement Rate Reductions new text end 306.12new text begin for Congregate Living for Individuals new text end 306.13new text begin with Lower Needs. new text end new text begin Beginning October 1, new text end 306.14new text begin 2011, the commissioner shall reduce lead new text end 306.15new text begin agency waiver allocations to implement the new text end 306.16new text begin reduction of rates for individuals with lower new text end 306.17new text begin needs living in foster care settings where the new text end 306.18new text begin license holder does not share the residence new text end 306.19new text begin with recipients on the CADI, DD, and TBI new text end 306.20new text begin waivers and customized living settings for new text end 306.21new text begin CADI and TBI.new text end 306.22new text begin Home and Community-Based Waiver new text end 306.23new text begin Appropriations Limits. new text end new text begin Total state and new text end 306.24new text begin federal funding for the biennium beginning new text end 306.25new text begin on July 1, 2011, for the Medicaid home new text end 306.26new text begin and community-based waivers for persons new text end 306.27new text begin with disabilities including DD waiver under new text end 306.28new text begin Minnesota Statutes, section 256B.092; and new text end 306.29new text begin the CADI and TBI waivers under Minnesota new text end 306.30new text begin Statutes, section 256B.49, are limited to new text end 306.31new text begin the following amounts: the DD waiver new text end 306.32new text begin is limited to $2,038,330,000; the CADI new text end 306.33new text begin waiver is limited to $963,854,000;and the new text end 306.34new text begin TBI waiver is limited to $206,408,000. Of new text end 306.35new text begin these amounts, the commissioner shall set new text end 306.36new text begin aside five percent of each waiver amount new text end 307.1new text begin to manage emergency situations around the new text end 307.2new text begin state. The commissioner must ensure that at new text end 307.3new text begin least the same number of people are served new text end 307.4new text begin on the home and community-based waiver new text end 307.5new text begin programs as were served on March 30, new text end 307.6new text begin 2010. Notwithstanding any law or rule to the new text end 307.7new text begin contrary, in order to meet the funding limits new text end 307.8new text begin in this provision, the commissioner may new text end 307.9new text begin reduce or adjust benefits and services, reduce new text end 307.10new text begin or adjust case-mix capitation rates, limit or new text end 307.11new text begin freeze waiver enrollment, establish needed new text end 307.12new text begin thresholds for service eligibility, adjust new text end 307.13new text begin eligibility criteria to the extent allowable new text end 307.14new text begin under federal regulations, establish prior new text end 307.15new text begin authorization criteria, and adjust county home new text end 307.16new text begin and community-based waiver allocations new text end 307.17new text begin as needed. Priorities for the use of waiver new text end 307.18new text begin slots must be for individuals anticipated to new text end 307.19new text begin be discharged from an institutional setting or new text end 307.20new text begin who are at imminent risk of an institutional new text end 307.21new text begin placement. The limits include conversions new text end 307.22new text begin and diversions, unless the commissioner has new text end 307.23new text begin approved a plan to convert funding due to new text end 307.24new text begin the restructuring, closure, or downsizing of new text end 307.25new text begin a residential facility or nursing facility to new text end 307.26new text begin serve directly affected individuals on the new text end 307.27new text begin home and community-based waivers. The new text end 307.28new text begin commissioner and counties are prohibited new text end 307.29new text begin from reducing provider rates under this new text end 307.30new text begin provision unless the reduction is due to a new text end 307.31new text begin change in the type or amount of services to be new text end 307.32new text begin delivered. The commissioner shall maintain new text end 307.33new text begin the waiting list and access to the waiver.new text end 307.34new text begin Management of Fee-for-Service Spending. new text end 307.35new text begin Total state and federal funding for the new text end 307.36new text begin biennium beginning on July 1, 2011, for new text end 308.1new text begin fee-for-service medical assistance basic care new text end 308.2new text begin for the elderly and persons with disabilities new text end 308.3new text begin is limited to $2,536,949,000. Total state and new text end 308.4new text begin federal funding for the biennium beginning new text end 308.5new text begin July 1, 2011, for fee-for-service medical new text end 308.6new text begin assistance basic care for adults without new text end 308.7new text begin children is limited to $526,251,000.new text end 308.8new text begin (1) Total state and federal funding for new text end 308.9new text begin fee-for-service medical assistance basic care new text end 308.10new text begin for the elderly and persons with disabilities is new text end 308.11new text begin limited to $950,183,000 for fiscal year 2012 new text end 308.12new text begin and $1,115,961,000 for fiscal year 2013.new text end 308.13new text begin (2) The commissioner shall contract with new text end 308.14new text begin a vendor to manage spending within these new text end 308.15new text begin limits, beginning January 1, 2012. The new text end 308.16new text begin vendor selected may:new text end 308.17new text begin (i) manage and coordinate the care provided new text end 308.18new text begin by high-cost providers;new text end 308.19new text begin (ii) implement payment reform initiatives to new text end 308.20new text begin encourage efficient and cost-effective service new text end 308.21new text begin provision;new text end 308.22new text begin (iii) identify and deny payment for new text end 308.23new text begin unnecessary services; andnew text end 308.24new text begin (iv) implement other initiatives proven to new text end 308.25new text begin improve the efficiency of fee-for-service care new text end 308.26new text begin delivery.new text end 308.27new text begin The contract with the vendor must be new text end 308.28new text begin on a contingency basis, under which the new text end 308.29new text begin vendor retains six percent of any savings new text end 308.30new text begin obtained from management of fee-for-service new text end 308.31new text begin spending.new text end 308.32new text begin (3) The commissioner, by October 1, 2012, new text end 308.33new text begin shall evaluate the extent to which initiatives new text end 308.34new text begin implemented by the vendor will be successful new text end 309.1new text begin in managing spending within the specified new text end 309.2new text begin limits. If the commissioner determines new text end 309.3new text begin that the vendor will not be successful in new text end 309.4new text begin managing spending within the specified new text end 309.5new text begin limits, the commissioner shall reduce medical new text end 309.6new text begin assistance provider payments by an amount new text end 309.7new text begin sufficient to comply with the spending new text end 309.8new text begin limits. In implementing rate reductions, the new text end 309.9new text begin commissioner shall exempt payments to new text end 309.10new text begin nursing facilities and providers of home and new text end 309.11new text begin community-based waiver services.new text end 309.12new text begin Contingent Rate Reductions. new text end new text begin If new text end 309.13new text begin the commissioner determines that new text end 309.14new text begin implementation of the global waiver under new text end 309.15new text begin Minnesota Statutes, sections 256B.841, new text end 309.16new text begin 256B.842, and 256B.843, will not achieve a new text end 309.17new text begin state general fund savings of $300,000,000 new text end 309.18new text begin for the biennium beginning July 1, 2011, the new text end 309.19new text begin commissioner shall calculate an estimate of new text end 309.20new text begin the shortfall in savings, and, for the fiscal new text end 309.21new text begin year beginning July 1, 2012, shall reduce new text end 309.22new text begin medical assistance provider payment rates, new text end 309.23new text begin including but not limited to rates to individual new text end 309.24new text begin health care providers and provider agencies, new text end 309.25new text begin hospitals, nursing facilities, other residential new text end 309.26new text begin settings, and capitation rates provided to new text end 309.27new text begin managed care and county-based purchasing new text end 309.28new text begin plans, by the amount necessary to recoup the new text end 309.29new text begin shortfall in savings over that fiscal year.new text end 309.30 new text begin (i) new text end new text begin Alternative Care Grantsnew text end new text begin 44,630,000new text end new text begin 44,689,000new text end
309.31new text begin Alternative Care Transfer. new text end new text begin Any money new text end 309.32new text begin allocated to the alternative care program that new text end 309.33new text begin is not spent for the purposes indicated does new text end 309.34new text begin not cancel but shall be transferred to the new text end 309.35new text begin medical assistance account.new text end 310.1 new text begin (j) new text end new text begin Chemical Dependency Entitlement Grantsnew text end new text begin 104,113,000new text end new text begin 127,281,000new text end
310.2 new text begin Subd. 4.new text end new text begin Grant Programsnew text end
310.3new text begin The amounts that may be spent from this new text end 310.4new text begin appropriation for each purpose are as follows:new text end 310.5 new text begin (a) new text end new text begin Support Services Grantsnew text end
310.6 new text begin Appropriations by Fundnew text end 310.7 new text begin Generalnew text end new text begin 8,715,000new text end new text begin 8,715,000new text end 310.8 new text begin Federal TANFnew text end new text begin 96,525,000new text end new text begin 90,611,000new text end
310.9new text begin MFIP Consolidated Fund Grants. new text end new text begin The new text end 310.10new text begin TANF fund base is reduced by $14,000,000 new text end 310.11new text begin each year beginning in fiscal year 2012.new text end 310.12new text begin Subsidized Employment Funding Through new text end 310.13new text begin ARRA. new text end new text begin The commissioner is authorized to new text end 310.14new text begin apply for TANF emergency fund grants for new text end 310.15new text begin subsidized employment activities. Growth new text end 310.16new text begin in expenditures for subsidized employment new text end 310.17new text begin within the supported work program and the new text end 310.18new text begin MFIP consolidated fund over the amount new text end 310.19new text begin expended in the calendar year quarters in new text end 310.20new text begin the TANF emergency fund base year shall new text end 310.21new text begin be used to leverage the TANF emergency new text end 310.22new text begin fund grants for subsidized employment and new text end 310.23new text begin to fund supported work. The commissioner new text end 310.24new text begin shall develop procedures to maximize new text end 310.25new text begin reimbursement of these expenditures over the new text end 310.26new text begin TANF emergency fund base year quarters, new text end 310.27new text begin and may contract directly with employers new text end 310.28new text begin and providers to maximize these TANF new text end 310.29new text begin emergency fund grants.new text end 310.30new text begin Healthy Communities. new text end new text begin $150,000 in fiscal new text end 310.31new text begin year 2012 and $150,000 in fiscal year 2013 new text end 310.32new text begin are appropriated from the general fund to new text end 310.33new text begin the commissioner of human services for new text end 310.34new text begin contracting with the Search Institute to new text end 311.1new text begin promote healthy community initiatives. new text end 311.2new text begin The commissioner may expend up to five new text end 311.3new text begin percent of the appropriation to provide for new text end 311.4new text begin the program evaluation.new text end 311.5new text begin Circles of Support. new text end new text begin $200,000 in fiscal year new text end 311.6new text begin 2012 and $200,000 in fiscal year 2013 are new text end 311.7new text begin appropriated from the general fund to the new text end 311.8new text begin commissioner of human services for the new text end 311.9new text begin purpose of providing grants to community new text end 311.10new text begin action agencies for circles of support new text end 311.11new text begin initiatives.new text end 311.12new text begin Northern Connections.new text end new text begin $100,000 is new text end 311.13new text begin appropriated in fiscal year 2012 and new text end 311.14new text begin $100,000 is appropriated in fiscal year 2013 new text end 311.15new text begin from the general fund to the commissioner new text end 311.16new text begin of human services for a grant to expand new text end 311.17new text begin Northern Connections workforce program new text end 311.18new text begin that provides one-stop supportive services new text end 311.19new text begin to individuals as they transition into the new text end 311.20new text begin workforce to up to two interested counties in new text end 311.21new text begin rural Minnesota.new text end 311.22 311.23 new text begin (b) new text end new text begin Basic Sliding Fee Child Care Assistance new text end new text begin Grantsnew text end new text begin 38,131,000new text end new text begin 41,035,000new text end
311.24new text begin Base Adjustment. new text end new text begin The general fund base is new text end 311.25new text begin decreased by $1,131,000 in fiscal year 2014 new text end 311.26new text begin and $1,126,000 in fiscal year 2015.new text end 311.27new text begin Child Care and Development Fund new text end 311.28new text begin Unexpended Balance. new text end new text begin In addition to new text end 311.29new text begin the amount provided in this section, the new text end 311.30new text begin commissioner shall expend $5,000,000 new text end 311.31new text begin in fiscal year 2012 from the federal child new text end 311.32new text begin care and development fund unexpended new text end 311.33new text begin balance for basic sliding fee child care under new text end 311.34new text begin Minnesota Statutes, section new text end new text begin . The new text end 311.35new text begin commissioner shall ensure that all child new text end 312.1new text begin care and development funds are expended new text end 312.2new text begin according to the federal child care and new text end 312.3new text begin development fund regulations.new text end 312.4 new text begin (c) new text end new text begin Child Care Development Grantsnew text end new text begin 1,487,000new text end new text begin 1,487,000new text end
312.5 new text begin (d) new text end new text begin Child Support Enforcement Grantsnew text end new text begin 50,000new text end new text begin 50,000new text end
312.6new text begin Federal Child Support Demonstration new text end 312.7new text begin Grants. new text end new text begin Federal administrative new text end 312.8new text begin reimbursement resulting from the federal new text end 312.9new text begin child support grant expenditures authorized new text end 312.10new text begin under section 1115a of the Social Security new text end 312.11new text begin Act is appropriated to the commissioner for new text end 312.12new text begin this activity.new text end 312.13 new text begin (e) new text end new text begin Children's Services Grantsnew text end
312.14 new text begin Appropriations by Fundnew text end 312.15 new text begin Generalnew text end new text begin 46,788,000new text end new text begin 46,788,000new text end 312.16 new text begin Federal TANFnew text end new text begin 140,000new text end new text begin 140,000new text end
312.17new text begin Adoption Assistance and Relative Custody new text end 312.18new text begin Assistance Payments.new text end new text begin $1,661,000 each new text end 312.19new text begin year is for continuation of current payments new text end 312.20new text begin for adoption assistance and relative custody new text end 312.21new text begin assistance.new text end 312.22new text begin Adoption Assistance and Relative Custody new text end 312.23new text begin Assistance Transfer. new text end new text begin The commissioner new text end 312.24new text begin may transfer unencumbered appropriation new text end 312.25new text begin balances for adoption assistance and relative new text end 312.26new text begin custody assistance between fiscal years and new text end 312.27new text begin between programs.new text end 312.28new text begin Privatized Adoption Grants. new text end new text begin Federal new text end 312.29new text begin reimbursement for privatized adoption grant new text end 312.30new text begin and foster care recruitment grant expenditures new text end 312.31new text begin is appropriated to the commissioner for new text end 312.32new text begin adoption grants and foster care and adoption new text end 312.33new text begin administrative purposes.new text end 313.1new text begin Adoption Assistance Incentive Grants.new text end new text begin new text end 313.2new text begin Federal funds available during fiscal year new text end 313.3new text begin 2012 and fiscal year 2013 for adoption new text end 313.4new text begin incentive grants are appropriated to the new text end 313.5new text begin commissioner for these purposes.new text end 313.6 new text begin (f) new text end new text begin Children and Community Services Grantsnew text end new text begin 64,301,000new text end new text begin 64,301,000new text end
313.7 new text begin (g) new text end new text begin Children and Economic Support Grantsnew text end new text begin 16,755,000new text end new text begin 16,265,000new text end
313.8new text begin Long-term homeless services.new text end new text begin $700,000 new text end 313.9new text begin is appropriated from the federal TANF new text end 313.10new text begin fund for the biennium beginning July new text end 313.11new text begin 1, 2011, to the commissioner of human new text end 313.12new text begin services for long-term homeless services new text end 313.13new text begin for low-income homeless families under new text end 313.14new text begin Minnesota Statutes, section 256K.26. This new text end 313.15new text begin is a onetime appropriation and is not added new text end 313.16new text begin to the base.new text end 313.17new text begin Base Adjustment.new text end new text begin The general fund base new text end 313.18new text begin is increased by $491,000 in fiscal year 2014 new text end 313.19new text begin only.new text end 313.20 new text begin (h) new text end new text begin Health Care Grantsnew text end
313.21 new text begin Appropriations by Fundnew text end 313.22 new text begin Generalnew text end new text begin 195,000new text end new text begin -0-new text end 313.23 new text begin Health Care Accessnew text end new text begin 900,000new text end new text begin 900,000new text end
313.24new text begin Surplus Appropriation Canceled.new text end new text begin Of the new text end 313.25new text begin appropriation in Laws 2009, chapter 79, new text end 313.26new text begin article 13, section 3, subdivision 6, paragraph new text end 313.27new text begin (e), for the COBRA premium state subsidy new text end 313.28new text begin program, $11,750,000 must be canceled in new text end 313.29new text begin fiscal year 2011. This provision is effective new text end 313.30new text begin the day following final enactment.new text end 313.31new text begin Grant Cancellation. new text end new text begin Effective for the new text end 313.32new text begin biennium beginning July 1, 2011, the new text end 313.33new text begin following appropriations are canceled: (1) a new text end 313.34new text begin general fund appropriation of $205,000 for new text end 314.1new text begin the U Special Kids program; (2) a general new text end 314.2new text begin fund appropriation of $90,000 for medical new text end 314.3new text begin assistance outreach grants; and (3) a health new text end 314.4new text begin care access fund appropriation of $40,000 for new text end 314.5new text begin MinnesotaCare outreach grants.new text end 314.6new text begin State Subsidy Program for Community new text end 314.7new text begin Mental Health Centers. new text end new text begin $100,000 is new text end 314.8new text begin appropriated from the general fund to new text end 314.9new text begin the commissioner of human services for new text end 314.10new text begin the biennium beginning July 1, 2011, to new text end 314.11new text begin provide onetime grants to establish new new text end 314.12new text begin community mental health centers that are new text end 314.13new text begin eligible for payment under Minnesota new text end 314.14new text begin Statutes, section 256B.0625, subdivision 5. new text end 314.15new text begin In awarding grants, the commissioner shall new text end 314.16new text begin give preference to areas of the state that new text end 314.17new text begin lack access to mental health services or are new text end 314.18new text begin underserved.new text end 314.19 new text begin (i) new text end new text begin Aging and Adult Services Grantsnew text end new text begin 18,734,000new text end new text begin 18,910,000new text end
314.20new text begin Aging Grants Reduction. new text end new text begin Effective July new text end 314.21new text begin 1, 2011, funding for grants made under new text end 314.22new text begin Minnesota Statutes, sections 256.9754 and new text end 314.23new text begin 256B.0917, subdivision 13, is reduced by new text end 314.24new text begin $3,600,000 for each year of the biennium. new text end 314.25new text begin These reductions are onetime and do new text end 314.26new text begin not affect base funding for the 2014-2015 new text end 314.27new text begin biennium. Grants made during the 2012-2013 new text end 314.28new text begin biennium under Minnesota Statutes, section new text end 314.29new text begin 256B.9754, must not be used for new new text end 314.30new text begin construction or building renovation.new text end 314.31new text begin Essential Community Support Grant new text end 314.32new text begin Delay.new text end new text begin Essential community supports new text end 314.33new text begin grants under Minnesota Statutes, section new text end 314.34new text begin 256B.0917, subdivision 14, is reduced new text end 314.35new text begin by $6,410,000 in fiscal year 2012 and new text end 315.1new text begin $7,279,000 in fiscal year 2013. Base level new text end 315.2new text begin funding for fiscal year 2014 is reduced by new text end 315.3new text begin $5,919,000. These reductions are onetime new text end 315.4new text begin and do not affect base level funding for fiscal new text end 315.5new text begin year 2015.new text end 315.6 new text begin (j) new text end new text begin Deaf and Hard-of-Hearing Grantsnew text end new text begin 1,936,000new text end new text begin 1,767,000new text end
315.7 new text begin (k) new text end new text begin Disabilities Grantsnew text end new text begin 22,025,000new text end new text begin 23,863,000new text end
315.8new text begin Money Follows the Person Rebalancing new text end 315.9new text begin Demonstration Project.new text end new text begin Notwithstanding new text end 315.10new text begin the provisions of Minnesota Statutes, section new text end 315.11new text begin 256.011, subdivision 3, estimated general new text end 315.12new text begin fund savings resulting from the operation of new text end 315.13new text begin the Money Follows the Person federal grant new text end 315.14new text begin fund must be retained within the medical new text end 315.15new text begin assistance general fund appropriation for the new text end 315.16new text begin payment of federally required rebalancing new text end 315.17new text begin expenditures. If a rebalancing expenditure new text end 315.18new text begin is not eligible for medical assistance, the new text end 315.19new text begin corresponding portion of estimated savings new text end 315.20new text begin must be transferred to and paid from a special new text end 315.21new text begin revenue account established for this purpose. new text end 315.22new text begin Money in the account does not cancel and new text end 315.23new text begin is appropriated to the commissioner for the new text end 315.24new text begin purposes of the demonstration project.new text end 315.25new text begin Region 10.new text end new text begin Any unspent allocation for new text end 315.26new text begin Region 10 Quality Assurance from the new text end 315.27new text begin biennium beginning on July 1, 2009, may be new text end 315.28new text begin carried over into the biennium beginning on new text end 315.29new text begin July 1, 2011.new text end 315.30new text begin Local Planning Grants for Creating new text end 315.31new text begin Alternatives to Congregate Living for new text end 315.32new text begin Individuals with Lower Needs. new text end new text begin The new text end 315.33new text begin commissioner shall make available a total new text end 315.34new text begin of $250,000 per year in local planning new text end 315.35new text begin grants, beginning July 1, 2011, to assist new text end 316.1new text begin lead agencies and provider organizations in new text end 316.2new text begin developing alternatives to congregate living new text end 316.3new text begin within the available level of resources for the new text end 316.4new text begin home and community-based services waivers new text end 316.5new text begin for persons with disabilities.new text end 316.6 new text begin (l) new text end new text begin Adult Mental Health Grantsnew text end
316.7 new text begin Appropriations by Fundnew text end 316.8 new text begin Generalnew text end new text begin 77,539,000new text end new text begin 77,539,000new text end 316.9 new text begin Lottery Prize Fundnew text end new text begin 1,508,000new text end new text begin 1,508,000new text end
316.10new text begin Funding Usage. new text end new text begin Up to 75 percent of a fiscal new text end 316.11new text begin year's appropriation for adult mental health new text end 316.12new text begin grants may be used to fund allocations in that new text end 316.13new text begin portion of the fiscal year ending December new text end 316.14new text begin 31.new text end 316.15new text begin Base Adjustment. new text end new text begin The lottery prize fund new text end 316.16new text begin base for this program shall be increased by new text end 316.17new text begin $78,000 in each of fiscal years 2014 and new text end 316.18new text begin 2015.new text end 316.19 new text begin (m) new text end new text begin Children's Mental Health Grantsnew text end new text begin 16,682,000new text end new text begin 16,682,000new text end
316.20new text begin Funding Usage. new text end new text begin Up to 75 percent of a fiscal new text end 316.21new text begin year's appropriation for children's mental new text end 316.22new text begin health grants may be used to fund allocations new text end 316.23new text begin in that portion of the fiscal year ending new text end 316.24new text begin December 31.new text end 316.25 316.26 new text begin (n) new text end new text begin Chemical Dependency Nonentitlement new text end new text begin Grantsnew text end new text begin 1,336,000new text end new text begin 1,336,000new text end
316.27 new text begin Subd. 5.new text end new text begin State-Operated Servicesnew text end
316.28new text begin Transfer Authority Related to new text end 316.29new text begin State-Operated Services. new text end new text begin Money new text end 316.30new text begin appropriated for state-operated services new text end 316.31new text begin may be transferred between fiscal years new text end 316.32new text begin of the biennium with the approval of the new text end 316.33new text begin commissioner of management and budget.new text end 316.34 new text begin (a) new text end new text begin State-Operated Services Mental Healthnew text end new text begin 115,286,000new text end new text begin 115,135,000new text end
317.1new text begin State-Operated Services. new text end new text begin To achieve these new text end 317.2new text begin savings, the commissioner shall close the new text end 317.3new text begin Willmar Community Behavioral Health new text end 317.4new text begin Hospital no later than October 1, 2011, and new text end 317.5new text begin shall close the inpatient child and adolescent new text end 317.6new text begin behavioral health service program in new text end 317.7new text begin Willmar, the subacute mental health facility new text end 317.8new text begin in Wadena, and the community behavioral new text end 317.9new text begin health hospitals in Alexandria, Annandale, new text end 317.10new text begin Baxter, Bemidji, Fergus Falls, and Rochester new text end 317.11new text begin no later than October 1, 2012.new text end 317.12new text begin Base Adjustment. new text end new text begin The general fund base is new text end 317.13new text begin reduced by $8,443,000 in fiscal year 2014 new text end 317.14new text begin and $11,543,000 in fiscal year 2015.new text end 317.15 new text begin (b) new text end new text begin Minnesota Security Hospitalnew text end new text begin 69,582,000new text end new text begin 69,582,000new text end
317.16 new text begin Subd. 6.new text end new text begin Sex Offender Programnew text end new text begin 70,416,000new text end new text begin 67,570,000new text end
317.17new text begin Transfer Authority Related to Minnesota new text end 317.18new text begin Sex Offender Program. new text end new text begin Money new text end 317.19new text begin appropriated for the Minnesota sex offender new text end 317.20new text begin program may be transferred between fiscal new text end 317.21new text begin years of the biennium with the approval new text end 317.22new text begin of the commissioner of management and new text end 317.23new text begin budget.new text end 317.24new text begin Minnesota Sex Offender Program new text end 317.25new text begin Reduction. new text end new text begin The fiscal year 2011 general new text end 317.26new text begin fund appropriation for Minnesota sex new text end 317.27new text begin offender services under Laws 2009, chapter new text end 317.28new text begin 79, article 13, section 3, subdivision 10, new text end 317.29new text begin paragraph (b), is reduced by $3,000,000.new text end 317.30 new text begin Subd. 7.new text end new text begin Technical Activitiesnew text end new text begin 78,206,000new text end new text begin 102,551,000new text end
317.31new text begin This appropriation is from the federal TANF new text end 317.32new text begin fund.new text end 317.33 Sec. 4. new text begin COMMISSIONER OF HEALTHnew text end
318.1 new text begin Subdivision 1.new text end new text begin Total Appropriationnew text end new text begin $new text end new text begin 147,939,000new text end new text begin $new text end new text begin 136,632,000new text end
318.2 new text begin Appropriations by Fundnew text end 318.3 new text begin 2012new text end new text begin 2013new text end 318.4 new text begin Generalnew text end new text begin 77,634,000new text end new text begin 72,738,000new text end 318.5 318.6 new text begin State Government new text end new text begin Special Revenuenew text end new text begin 45,268,000new text end new text begin 45,325,000new text end 318.7 new text begin Health Care Accessnew text end new text begin 13,774,000new text end new text begin 9,162,000new text end 318.8 new text begin Federal TANFnew text end new text begin 11,713,000new text end new text begin 11,713,000new text end
318.9new text begin The amounts that may be spent for each new text end 318.10new text begin purpose are specified in the following new text end 318.11new text begin subdivisions.new text end 318.12 318.13 new text begin Subd. 2.new text end new text begin Community and Family Health new text end new text begin Promotionnew text end
318.14 new text begin Appropriations by Fundnew text end 318.15 new text begin Generalnew text end new text begin 50,430,000new text end new text begin 45,690,000new text end 318.16 318.17 new text begin State Government new text end new text begin Special Revenuenew text end new text begin 1,033,000new text end new text begin 1,033,000new text end 318.18 new text begin Health Care Accessnew text end new text begin 2,918,000new text end new text begin 2,459,000new text end 318.19 new text begin Federal TANFnew text end new text begin 11,713,000new text end new text begin 11,713,000new text end
318.20new text begin TANF Appropriations.new text end new text begin (1) $1,156,000 of new text end 318.21new text begin the TANF funds is appropriated each year to new text end 318.22new text begin the commissioner for family planning grants new text end 318.23new text begin under Minnesota Statutes, section 145.925.new text end 318.24new text begin (2) $3,579,000 of the TANF funds is new text end 318.25new text begin appropriated each year to the commissioner new text end 318.26new text begin for home visiting and nutritional services new text end 318.27new text begin listed under Minnesota Statutes, section new text end 318.28new text begin 145.882, subdivision 7, clauses (6) and (7). new text end 318.29new text begin Funds must be distributed to community new text end 318.30new text begin health boards according to Minnesota new text end 318.31new text begin Statutes, section 145A.131, subdivision 1.new text end 318.32new text begin (3) $2,000,000 of the TANF funds is new text end 318.33new text begin appropriated each year to the commissioner new text end 318.34new text begin for decreasing racial and ethnic disparities new text end 318.35new text begin in infant mortality rates under Minnesota new text end 318.36new text begin Statutes, section 145.928, subdivision 7.new text end 319.1new text begin (4) $4,978,000 of the TANF funds is new text end 319.2new text begin appropriated each year to the commissioner new text end 319.3new text begin for the family home visiting grant program new text end 319.4new text begin according to Minnesota Statutes, section new text end 319.5new text begin 145A.17. $4,000,000 of the funding must new text end 319.6new text begin be distributed to community health boards new text end 319.7new text begin according to Minnesota Statutes, section new text end 319.8new text begin 145A.131, subdivision 1. $978,000 of new text end 319.9new text begin the funding must be distributed to tribal new text end 319.10new text begin governments based on Minnesota Statutes, new text end 319.11new text begin section 145A.14, subdivision 2a.new text end 319.12new text begin (5) The commissioner may use up to 6.23 new text end 319.13new text begin percent of the funds appropriated each fiscal new text end 319.14new text begin year to conduct the ongoing evaluations new text end 319.15new text begin required under Minnesota Statutes, section new text end 319.16new text begin 145A.17, subdivision 7, and training and new text end 319.17new text begin technical assistance as required under new text end 319.18new text begin Minnesota Statutes, section 145A.17, new text end 319.19new text begin subdivisions 4 and 5.new text end 319.20new text begin TANF Carryforward.new text end new text begin Any unexpended new text end 319.21new text begin balance of the TANF appropriation in the new text end 319.22new text begin first year of the biennium does not cancel but new text end 319.23new text begin is available for the second year.new text end 319.24 new text begin Subd. 3.new text end new text begin Policy Quality and Compliancenew text end
319.25 new text begin Appropriations by Fundnew text end 319.26 new text begin Generalnew text end new text begin 10,434,000new text end new text begin 10,230,000new text end 319.27 319.28 new text begin State Government new text end new text begin Special Revenuenew text end new text begin 14,026,000new text end new text begin 14,083,000new text end 319.29 new text begin Health Care Accessnew text end new text begin 10,856,000new text end new text begin 6,703,000new text end
319.30new text begin MERC Fund Transfers.new text end new text begin The commissioner new text end 319.31new text begin of management and budget shall transfer new text end 319.32new text begin $9,800,000 from the MERC fund to the new text end 319.33new text begin general fund by October 1, 2011.new text end 319.34new text begin Comprehensive Advanced Life Support.new text end new text begin new text end 319.35new text begin Of the general fund appropriation, $31,000 new text end 320.1new text begin each year is added to the base of the new text end 320.2new text begin comprehensive advanced life support new text end 320.3new text begin (CALS) program under Minnesota Statutes, new text end 320.4new text begin section 144.6062.new text end 320.5new text begin Unused Federal Match Funds.new text end new text begin Of the new text end 320.6new text begin funds appropriated in Laws 2009, chapter new text end 320.7new text begin 79, article 13, section 4, subdivision 3, for new text end 320.8new text begin state matching funds for the federal Health new text end 320.9new text begin Information Technology for Economic and new text end 320.10new text begin Clinical Health Act, $2,800,000 is transferred new text end 320.11new text begin to the health care access fund by October 1, new text end 320.12new text begin 2011.new text end 320.13new text begin Advisory Committee on Patient and new text end 320.14new text begin Community Engagement.new text end new text begin $50,000 is new text end 320.15new text begin appropriated to the commissioner of health new text end 320.16new text begin to provide a grant to a private sector new text end 320.17new text begin organization designated as the advisory new text end 320.18new text begin committee on patient and community new text end 320.19new text begin engagement to be used by the organization new text end 320.20new text begin for:new text end 320.21new text begin (1) per diems and expenses for persons who new text end 320.22new text begin serve on the designated organization's board; new text end 320.23new text begin and new text end 320.24new text begin (2) expenses for conducting focus groups, new text end 320.25new text begin community engagement events, surveys, and new text end 320.26new text begin other activities undertaken by the designated new text end 320.27new text begin organization to obtain information, input, new text end 320.28new text begin and preferences from diverse communities new text end 320.29new text begin for purposes of community engagement in new text end 320.30new text begin health system issues.new text end 320.31new text begin Health Careers Opportunities Grants. new text end 320.32new text begin $447,000 each year is appropriated to the new text end 320.33new text begin commissioner of health from the health new text end 320.34new text begin care access fund for the health careers new text end 321.1new text begin opportunities grant program under Minnesota new text end 321.2new text begin Statutes, section 144.1499.new text end 321.3new text begin Health Professions Opportunities new text end 321.4new text begin Scholarship Program. new text end new text begin $63,000 each year is new text end 321.5new text begin appropriated to the commissioner of health new text end 321.6new text begin from the health care access fund for the new text end 321.7new text begin health professions opportunities scholarship new text end 321.8new text begin program under Minnesota Statutes, section new text end 321.9new text begin 144.1503. $138,000 in fiscal year 2012 and new text end 321.10new text begin $276,000 each year thereafter is appropriated new text end 321.11new text begin to the commissioner of health from the new text end 321.12new text begin general fund for the health professions new text end 321.13new text begin opportunities scholarship program under new text end 321.14new text begin Minnesota Statutes, section 144.1503.new text end 321.15new text begin Base Level Adjustment.new text end new text begin The state new text end 321.16new text begin government special revenue fund base shall new text end 321.17new text begin be reduced by $141,000 in fiscal years 2014 new text end 321.18new text begin and 2015. The health care access base shall new text end 321.19new text begin be increased by $600,000 in fiscal year 2014.new text end 321.20 new text begin Subd. 4.new text end new text begin Health Protectionnew text end
321.21 new text begin Appropriations by Fundnew text end 321.22 new text begin Generalnew text end new text begin 9,370,000new text end new text begin 9,370,000new text end 321.23 321.24 new text begin State Government new text end new text begin Special Revenuenew text end new text begin 30,209,000new text end new text begin 30,209,000new text end
321.25 new text begin Subd. 5.new text end new text begin Administrative Support Servicesnew text end new text begin 7,400,000new text end new text begin 7,448,000new text end
321.26 Sec. 5. new text begin COUNCIL ON DISABILITYnew text end new text begin $new text end new text begin 524,000new text end new text begin $new text end new text begin 524,000new text end
321.27 321.28 321.29 Sec. 6. new text begin OMBUDSMAN FOR MENTAL new text end new text begin HEALTH AND DEVELOPMENTAL new text end new text begin DISABILITIESnew text end new text begin $new text end new text begin 1,655,000new text end new text begin $new text end new text begin 1,655,000new text end
321.30new text begin Funds appropriated for fiscal year 2011 are new text end 321.31new text begin available until expended.new text end 321.32 Sec. 7. new text begin OMBUDSPERSON FOR FAMILIESnew text end new text begin $new text end new text begin 265,000new text end new text begin $new text end new text begin 265,000new text end
321.33 Sec. 8. new text begin HEALTH-RELATED BOARDSnew text end
322.1 new text begin Subdivision 1.new text end new text begin Total Appropriationnew text end new text begin $new text end new text begin 17,365,000new text end new text begin $new text end new text begin 17,264,000new text end
322.2new text begin This appropriation is from the state new text end 322.3new text begin government special revenue fund. The new text end 322.4new text begin amounts that may be spent for each purpose new text end 322.5new text begin are specified in the following subdivisions.new text end 322.6 new text begin Subd. 2.new text end new text begin Board of Chiropractic Examinersnew text end new text begin 469,000new text end new text begin 469,000new text end
322.7 new text begin Subd. 3.new text end new text begin Board of Dentistrynew text end new text begin 1,959,000new text end new text begin 1,914,000new text end
322.8new text begin Health Professional Services Program.new text end new text begin new text end 322.9new text begin $834,000 in fiscal year 2012 and $804,000 in new text end 322.10new text begin fiscal year 2013 from the state government new text end 322.11new text begin special revenue fund are for the health new text end 322.12new text begin professional services program.new text end 322.13 322.14 new text begin Subd. 4.new text end new text begin Board of Dietetic and Nutrition new text end new text begin Practicenew text end new text begin 110,000new text end new text begin 110,000new text end
322.15 322.16 new text begin Subd. 5.new text end new text begin Board of Marriage and Family new text end new text begin Therapynew text end new text begin 192,000new text end new text begin 167,000new text end
322.17new text begin Rulemaking.new text end new text begin Of this appropriation, $25,000 new text end 322.18new text begin in fiscal year 2012 is for rulemaking. This is new text end 322.19new text begin a onetime appropriation.new text end 322.20 new text begin Subd. 6.new text end new text begin Board of Medical Practicenew text end new text begin 3,866,000new text end new text begin 3,866,000new text end
322.21 new text begin Subd. 7.new text end new text begin Board of Nursingnew text end new text begin 3,545,000new text end new text begin 3,545,000new text end
322.22 322.23 new text begin Subd. 8.new text end new text begin Board of Nursing Home new text end new text begin Administratorsnew text end new text begin 2,153,000new text end new text begin 2,145,000new text end
322.24new text begin Rulemaking.new text end new text begin Of this appropriation, $44,000 new text end 322.25new text begin in fiscal year 2012 is for rulemaking. This is new text end 322.26new text begin a onetime appropriation.new text end 322.27new text begin Electronic Licensing System Adaptors.new text end new text begin new text end 322.28new text begin Of this appropriation, $761,000 in fiscal new text end 322.29new text begin year 2013 from the state government special new text end 322.30new text begin revenue fund is to the administrative services new text end 322.31new text begin unit to cover the costs to connect to the new text end 322.32new text begin e-licensing system. Minnesota Statutes, new text end 322.33new text begin section 16E.22. Base level funding for this new text end 323.1new text begin activity in fiscal year 2014 shall be $100,000. new text end 323.2new text begin Base level funding for this activity in fiscal new text end 323.3new text begin year 2015 shall be $50,000.new text end 323.4new text begin Development and Implementation of a new text end 323.5new text begin Disciplinary, Regulatory, Licensing and new text end 323.6new text begin Information Management System.new text end new text begin Of this new text end 323.7new text begin appropriation, $800,000 in fiscal year 2012 new text end 323.8new text begin and $300,000 in fiscal year 2013 are for the new text end 323.9new text begin development of a shared system. Base level new text end 323.10new text begin funding for this activity in fiscal year 2014 new text end 323.11new text begin shall be $50,000.new text end 323.12new text begin Administrative Services Unit - Operating new text end 323.13new text begin Costs.new text end new text begin Of this appropriation, $526,000 new text end 323.14new text begin in fiscal year 2012 and $526,000 in new text end 323.15new text begin fiscal year 2013 are for operating costs new text end 323.16new text begin of the administrative services unit. The new text end 323.17new text begin administrative services unit may receive new text end 323.18new text begin and expend reimbursements for services new text end 323.19new text begin performed by other agencies.new text end 323.20new text begin Administrative Services Unit - Retirement new text end 323.21new text begin Costs.new text end new text begin Of this appropriation in fiscal year new text end 323.22new text begin 2012, $225,000 is for onetime retirement new text end 323.23new text begin costs in the health-related boards. This new text end 323.24new text begin funding may be transferred to the health new text end 323.25new text begin boards incurring those costs for their new text end 323.26new text begin payment. These funds are available either new text end 323.27new text begin year of the biennium.new text end 323.28new text begin Administrative Services Unit - Volunteer new text end 323.29new text begin Health Care Provider Program.new text end new text begin Of this new text end 323.30new text begin appropriation, $150,000 in fiscal year 2012 new text end 323.31new text begin and $150,000 in fiscal year 2013 are to pay new text end 323.32new text begin for medical professional liability coverage new text end 323.33new text begin required under Minnesota Statutes, section new text end 323.34new text begin 214.40.new text end 324.1new text begin Administrative Services Unit - Contested new text end 324.2new text begin Cases and Other Legal Proceedings.new text end new text begin new text end 324.3new text begin Of this appropriation, $200,000 in fiscal new text end 324.4new text begin year 2012 and $200,000 in fiscal year new text end 324.5new text begin 2013 are for costs of contested case new text end 324.6new text begin hearings and other unanticipated costs of new text end 324.7new text begin legal proceedings involving health-related new text end 324.8new text begin boards funded under this section. Upon new text end 324.9new text begin certification of a health-related board to the new text end 324.10new text begin administrative services unit that the costs new text end 324.11new text begin will be incurred and that there is insufficient new text end 324.12new text begin money available to pay for the costs out of new text end 324.13new text begin money currently available to that board, the new text end 324.14new text begin administrative services unit is authorized new text end 324.15new text begin to transfer money from this appropriation new text end 324.16new text begin to the board for payment of those costs new text end 324.17new text begin with the approval of the commissioner of new text end 324.18new text begin finance. This appropriation does not cancel. new text end 324.19new text begin Any unencumbered and unspent balances new text end 324.20new text begin remain available for these expenditures in new text end 324.21new text begin subsequent fiscal years.new text end 324.22 new text begin Subd. 9.new text end new text begin Board of Optometrynew text end new text begin 106,000new text end new text begin 106,000new text end
324.23 new text begin Subd. 10.new text end new text begin Board of Pharmacynew text end new text begin 1,977,000new text end new text begin 1,980,000new text end
324.24new text begin Prescription Electronic Reporting.new text end new text begin Of new text end 324.25new text begin this appropriation, $356,000 in fiscal year new text end 324.26new text begin 2012 and $356,000 in fiscal year 2013 from new text end 324.27new text begin the state government special revenue fund new text end 324.28new text begin are to the board to operate the prescription new text end 324.29new text begin electronic reporting system in Minnesota new text end 324.30new text begin Statutes, section 152.126. Base level funding new text end 324.31new text begin for this activity in fiscal year 2014 shall be new text end 324.32new text begin $356,000.new text end 324.33 new text begin Subd. 11.new text end new text begin Board of Physical Therapynew text end new text begin 389,000new text end new text begin 345,000new text end
325.1new text begin Rulemaking.new text end new text begin Of this appropriation, $44,000 new text end 325.2new text begin in fiscal year 2012 is for rulemaking. This is new text end 325.3new text begin a onetime appropriation.new text end 325.4 new text begin Subd. 12.new text end new text begin Board of Podiatrynew text end new text begin 75,000new text end new text begin 75,000new text end
325.5 new text begin Subd. 13.new text end new text begin Board of Psychologynew text end new text begin 846,000new text end new text begin 846,000new text end
325.6 new text begin Subd. 14.new text end new text begin Board of Social Worknew text end new text begin 1,036,000new text end new text begin 1,053,000new text end
325.7 new text begin Subd. 15.new text end new text begin Board of Veterinary Medicinenew text end new text begin 228,000new text end new text begin 229,000new text end
325.8 325.9 new text begin Subd. 16.new text end new text begin Board of Behavioral Health and new text end new text begin Therapynew text end new text begin 414,000new text end new text begin 414,000new text end
325.10 325.11 Sec. 9. new text begin EMERGENCY MEDICAL SERVICES new text end new text begin BOARDnew text end new text begin $new text end new text begin 2,742,000new text end new text begin $new text end new text begin 2,742,000new text end
325.12new text begin Of the appropriation, $700,000 in fiscal year new text end 325.13new text begin 2012 and $700,000 in fiscal year 2013 are new text end 325.14new text begin for the Cooper/Sams volunteer ambulance new text end 325.15new text begin program under Minnesota Statutes, section new text end 325.16new text begin 144E.40.new text end 325.17    Sec. 10. Minnesota Statutes 2010, section 256.01, is amended by adding a subdivision 325.18to read: 325.19    new text begin Subd. 33.new text end new text begin Federal administrative reimbursement dedicated.new text end new text begin Federal new text end 325.20new text begin administrative reimbursement resulting from the following activities is appropriated to the new text end 325.21new text begin commissioner for the designated purposes:new text end 325.22new text begin (1) reimbursement for the Minnesota senior health options project; andnew text end 325.23new text begin (2) reimbursement related to prior authorization and inpatient admission certification new text end 325.24new text begin by a professional review organization. A portion of these funds must be used for activities new text end 325.25new text begin to decrease unnecessary pharmaceutical costs in medical assistance.new text end 325.26    Sec. 11. Laws 2010, First Special Session chapter 1, article 15, section 3, subdivision 325.276, is amended to read: 325.28 Subd. 6.Continuing Care Grants
325.29 (a) Aging and Adult Services Grants (3,600,000) (3,600,000)
325.30Community Service/Service Development 325.31Grants Reduction. Effective retroactively 326.1from July 1, 2009, funding for grants made 326.2under Minnesota Statutes, sections 256.9754 326.3and 256B.0917, subdivision 13, is reduced 326.4by $5,807,000 for each year of the biennium. 326.5Grants made during the biennium under 326.6Minnesota Statutes, section 256.9754, shall 326.7not be used for new construction or building 326.8renovation. 326.9Aging Grants Delay. Aging grants must be 326.10reduced by $917,000 in fiscal year 2011 and 326.11increased by $917,000 in fiscal year 2012. 326.12These adjustments are onetime and must not 326.13be applied to the base. This provision expires 326.14June 30, 2012. 326.15 326.16 (b) Medical Assistance Long-Term Care Facilities Grants (3,827,000) (2,745,000)
326.17ICF/MR Variable Rates Suspension. 326.18Effective retroactively from July 1, 2009, 326.19to June 30, 2010, no new variable rates 326.20shall be authorized for intermediate care 326.21facilities for persons with developmental 326.22disabilities under Minnesota Statutes, section 326.23256B.5013, subdivision 1 . 326.24ICF/MR Occupancy Rate Adjustment 326.25Suspension. Effective retroactively from 326.26July 1, 2009, to June 30, 2011, approval 326.27of new applications for occupancy rate 326.28adjustments for unoccupied short-term 326.29beds under Minnesota Statutes, section 326.30256B.5013, subdivision 7 , is suspended. 326.31 326.32 (c) Medical Assistance Long-Term Care Waivers and Home Care Grants (2,318,000) (5,807,000)
326.33Developmental Disability Waiver Acuity 326.34Factor. Effective retroactively from January 326.351, 2010, the January 1, 2010, one percent 327.1growth factor in the developmental disability 327.2waiver allocations under Minnesota Statutes, 327.3section 256B.092, subdivisions 4 and 5, 327.4that is attributable to changes in acuity, 327.5is suspended to June 30, 2011new text begin 2012. new text end 327.6new text begin Notwithstanding any law to the contrary, this new text end 327.7new text begin provision does not expirenew text end . 327.8 (d) Adult Mental Health Grants (5,000,000) -0-
327.9 (e) Chemical Dependency Entitlement Grants (3,622,000) (3,622,000)
327.10 327.11 (f) Chemical Dependency Nonentitlement Grants (393,000) (393,000)
327.12 327.13 (g) Other Continuing Care Grants -0- (2,500,000) new text begin (1,414,000)new text end
327.14Other Continuing Care Grants Delay. 327.15Other continuing care grants must be reduced 327.16by $1,414,000 in fiscal year 2011 and 327.17increased by $1,414,000 in fiscal year 2012. 327.18These adjustments are onetime and must not 327.19be applied to the base. This provision expires 327.20June 30, 2012. 327.21 new text begin (h) new text end new text begin Deaf and Hard-of-Hearing Grantsnew text end new text begin -0-new text end new text begin (169,000)new text end
327.22new text begin Deaf and Hard-of-Hearing Grants Delay.new text end new text begin new text end 327.23new text begin Effective retroactively from July 1, 2010, new text end 327.24new text begin deaf and hard-of-hearing grants must be new text end 327.25new text begin reduced by $169,000 in fiscal year 2011 and new text end 327.26new text begin increased by $169,000 in fiscal year 2012. new text end 327.27new text begin These adjustments are onetime and must not new text end 327.28new text begin be applied to the base. This provision expires new text end 327.29new text begin June 30, 2012.new text end 327.30    Sec. 12. new text begin TRANSFERS.new text end 327.31    new text begin Subdivision 1.new text end new text begin Grants.new text end new text begin The commissioner of human services, with the approval new text end 327.32new text begin of the commissioner of management and budget, and after notification of the chairs of new text end 327.33new text begin the senate health and human services budget and policy committee and the house of new text end 327.34new text begin representatives health and human services finance committee, may transfer unencumbered new text end 328.1new text begin appropriation balances for the biennium ending June 30, 2013, within fiscal years among new text end 328.2new text begin the MFIP; general assistance; general assistance medical care under Minnesota Statutes new text end 328.3new text begin 2009 Supplement, section 256D.03, subdivision 3; medical assistance; MFIP child care new text end 328.4new text begin assistance under Minnesota Statutes, section 119B.05; Minnesota supplemental aid; new text end 328.5new text begin and group residential housing programs, and the entitlement portion of the chemical new text end 328.6new text begin dependency consolidated treatment fund, and between fiscal years of the biennium.new text end 328.7    new text begin Subd. 2.new text end new text begin Administration.new text end new text begin Positions, salary money, and nonsalary administrative new text end 328.8new text begin money may be transferred within the Departments of Health and Human Services as the new text end 328.9new text begin commissioners consider necessary, with the advance approval of the commissioner of new text end 328.10new text begin management and budget. The commissioner shall inform the chairs of the senate health new text end 328.11new text begin and human services budget and policy committee and the house of representatives health new text end 328.12new text begin and human services finance committee quarterly about transfers made under this provision.new text end 328.13    Sec. 13. new text begin INDIRECT COSTS NOT TO FUND PROGRAMS.new text end 328.14new text begin The commissioners of health and human services shall not use indirect cost new text end 328.15new text begin allocations to pay for the operational costs of any program for which they are responsible.new text end 328.16    Sec. 14. new text begin EXPIRATION OF UNCODIFIED LANGUAGE.new text end 328.17new text begin All uncodified language contained in this article expires on June 30, 2013, unless a new text end 328.18new text begin different expiration date is explicit.new text end 328.19    Sec. 15. new text begin EFFECTIVE DATE.new text end 328.20new text begin The provisions in this article are effective July 1, 2011, unless a different effective new text end 328.21new text begin date is specified.new text end 328.22ARTICLE 10 328.23HUMAN SERVICES FORECAST ADJUSTMENTS 328.24 328.25 Section 1. new text begin DEPARTMENT OF HUMAN SERVICES FORECAST ADJUSTMENT new text end new text begin APPROPRIATIONS.new text end
328.26new text begin The sums shown are added to, or if shown in parentheses, are subtracted from the new text end 328.27new text begin appropriations in Laws 2009, chapter 79, article 13, as amended by Laws 2009, chapter new text end 328.28new text begin 173, article 2; Laws 2010, First Special Session chapter 1, articles 15, 23, and 25; and new text end 328.29new text begin Laws 2010, Second Special Session chapter 1, article 3, to the commissioner of human new text end 328.30new text begin services and for the purposes specified in this article. The appropriations are from the new text end 328.31new text begin general fund or another named fund and are available for the fiscal year indicated for new text end 329.1new text begin each purpose. The figure "2011" used in this article means that the appropriation or new text end 329.2new text begin appropriations listed are available for the fiscal year ending June 30, 2011.new text end 329.3 329.4 Sec. 2. new text begin COMMISSIONER OF HUMAN new text end new text begin SERVICESnew text end
329.5 new text begin Subdivision 1.new text end new text begin Total Appropriationnew text end new text begin $new text end new text begin (235,463,000)new text end
329.6 new text begin Appropriations by Fundnew text end 329.7 new text begin 2011new text end 329.8 new text begin Generalnew text end new text begin (381,869,000)new text end 329.9 new text begin Health Care Accessnew text end new text begin 169,514,000new text end 329.10 new text begin Federal TANFnew text end new text begin (23,108,000)new text end
329.11new text begin The amounts that may be spent for each new text end 329.12new text begin purpose are specified in the following new text end 329.13new text begin subdivisions.new text end 329.14 new text begin Subd. 2.new text end new text begin Revenue and Pass-throughnew text end new text begin 732,000new text end
329.15new text begin This appropriation is from the federal TANF new text end 329.16new text begin fund.new text end 329.17 329.18 new text begin Subd. 3.new text end new text begin Children and Economic Assistance new text end new text begin Grantsnew text end
329.19 new text begin Appropriations by Fundnew text end 329.20 new text begin Generalnew text end new text begin (7,098,000)new text end 329.21 new text begin Federal TANFnew text end new text begin (23,840,000)new text end
329.22 new text begin (a) new text end new text begin MFIP/DWP Grantsnew text end
329.23 new text begin Appropriations by Fundnew text end 329.24 new text begin Generalnew text end new text begin 18,715,000new text end 329.25 new text begin Federal TANFnew text end new text begin (23,840,000)new text end
329.26 new text begin (b) new text end new text begin MFIP Child Care Assistance Grantsnew text end new text begin (24,394,000)new text end
329.27 new text begin (c) new text end new text begin General Assistance Grantsnew text end new text begin (664,000)new text end
329.28 new text begin (d) new text end new text begin Minnesota Supplemental Aid Grantsnew text end new text begin 793,000new text end
329.29 new text begin (e) new text end new text begin Group Residential Housing Grantsnew text end new text begin (1,548,000)new text end
329.30 new text begin Subd. 4.new text end new text begin Basic Health Care Grantsnew text end
329.31 new text begin Appropriations by Fundnew text end 329.32 new text begin Generalnew text end new text begin (335,050,000)new text end 329.33 new text begin Health Care Accessnew text end new text begin 169,514,000new text end
329.34 new text begin (a) new text end new text begin MinnesotaCare Grantsnew text end new text begin 169,514,000new text end
330.1new text begin This appropriation is from the health care new text end 330.2new text begin access fund.new text end 330.3 330.4 new text begin (b) new text end new text begin Medical Assistance Basic Health Care - new text end new text begin Families and Childrennew text end new text begin (49,368,000)new text end
330.5 330.6 new text begin (c) new text end new text begin Medical Assistance Basic Health Care - new text end new text begin Elderly and Disablednew text end new text begin (43,258,000)new text end
330.7 330.8 new text begin (d) new text end new text begin Medical Assistance Basic Health Care - new text end new text begin Adults without Childrennew text end new text begin (242,424,000)new text end
330.9 new text begin Subd. 5.new text end new text begin Continuing Care Grantsnew text end new text begin (39,721,000)new text end
330.10 330.11 new text begin (a) new text end new text begin Medical Assistance Long-Term Care new text end new text begin Facilitiesnew text end new text begin (14,627,000)new text end
330.12 330.13 new text begin (b) new text end new text begin Medical Assistance Long-Term Care new text end new text begin Waiversnew text end new text begin (44,718,000)new text end
330.14 new text begin (c) new text end new text begin Chemical Dependency Entitlement Grantsnew text end new text begin 19,624,000new text end
330.15    Sec. 3. Laws 2010, First Special Session chapter 1, article 25, section 3, subdivision 6, 330.16is amended to read: 330.17 Subd. 6.Health Care Grants
330.18 (a) MinnesotaCare Grants 998,000 (13,376,000)
330.19This appropriation is from the health care 330.20access fund. 330.21Health Care Access Fund Transfer to 330.22General Fund. The commissioner of 330.23management and budget shall transfer the 330.24following amounts in the following years 330.25from the health care access fund to the 330.26general fund: $998,000new text begin $0new text end in fiscal year 330.272010; $176,704,000new text begin $59,901,000new text end in fiscal 330.28year 2011; $141,041,000 in fiscal year 2012; 330.29and $286,150,000 in fiscal year 2013. If at 330.30any time the governor issues an executive 330.31order not to participate in early medical 330.32assistance expansion, no funds shall be 330.33transferred from the health care access 330.34fund to the general fund until early medical 331.1assistance expansion takes effect. This 331.2paragraph is effective the day following final 331.3enactment. 331.4MinnesotaCare Ratable Reduction. 331.5Effective for services rendered on or after 331.6July 1, 2010, to December 31, 2013, 331.7MinnesotaCare payments to managed care 331.8plans under Minnesota Statutes, section 331.9256L.12 , for single adults and households 331.10without children whose income is greater 331.11than 75 percent of federal poverty guidelines 331.12shall be reduced by 15 percent. Effective 331.13for services provided from July 1, 2010, to 331.14June 30, 2011, this reduction shall apply to 331.15all services. Effective for services provided 331.16from July 1, 2011, to December 31, 2013, this 331.17reduction shall apply to all services except 331.18inpatient hospital services. Notwithstanding 331.19any contrary provision of this article, this 331.20paragraph shall expire on December 31, 331.212013. 331.22 331.23 (b) Medical Assistance Basic Health Care Grants - Families and Children -0- 295,512,000
331.24Critical Access Dental. Of the general 331.25fund appropriation, $731,000 in fiscal year 331.262011 is to the commissioner for critical 331.27access dental provider reimbursement 331.28payments under Minnesota Statutes, section 331.29256B.76 subdivision 4. This is a onetime 331.30appropriation. 331.31Nonadministrative Rate Reduction. For 331.32services rendered on or after July 1, 2010, 331.33to December 31, 2013, the commissioner 331.34shall reduce contract rates paid to managed 331.35care plans under Minnesota Statutes, 331.36sections 256B.69 and 256L.12, and to 332.1county-based purchasing plans under 332.2Minnesota Statutes, section 256B.692, by 332.3three percent of the contract rate attributable 332.4to nonadministrative services in effect on 332.5June 30, 2010. Notwithstanding any contrary 332.6provision in this article, this rider expires on 332.7December 31, 2013. 332.8 332.9 (c) Medical Assistance Basic Health Care Grants - Elderly and Disabled -0- (30,265,000)
332.10 332.11 (d) General Assistance Medical Care Grants -0- (75,389,000) new text begin (59,583,000)new text end
332.12new text begin The reduction to general assistance medical new text end 332.13new text begin care grants is contingent upon the effective new text end 332.14new text begin date in Laws 2010, First Special Session new text end 332.15new text begin chapter 1, article 16, section 48. The new text end 332.16new text begin reduction shall be reestimated based upon new text end 332.17new text begin the actual effective date of the law. The new text end 332.18new text begin commissioner of management and budget new text end 332.19new text begin shall make adjustments in fiscal year new text end 332.20new text begin 2011 to general assistance medical care new text end 332.21new text begin appropriations to conform to the total new text end 332.22new text begin expected expenditure reductions specified in new text end 332.23new text begin this section.new text end 332.24 (e) Other Health Care Grants -0- (7,000,000)
332.25Cobra Carryforward. Unexpended funds 332.26appropriated in fiscal year 2010 for COBRA 332.27grants under Laws 2009, chapter 79, article 332.285, section 78, do not cancel and are available 332.29to the commissioner for fiscal year 2011 332.30COBRA grant expenditures. Up to $111,000 332.31of the fiscal year 2011 appropriation for 332.32COBRA grants provided in Laws 2009, 332.33chapter 79, article 13, section 3, subdivision 332.346, may be used by the commissioner for costs 332.35related to administration of the COBRA 332.36grants. 333.1    Sec. 4. new text begin EFFECTIVE DATE.new text end 333.2new text begin This article is effective the day following final enactment.new text end