1.1 	A bill for an act
1.2 	relating to state government; making adjustments to health and human 
1.3 	services appropriations; making changes to provisions related to health care, 
1.4 	the Department of Health, children and family services, continuing care, 
1.5 	chemical dependency, child support, background studies, homelessness, and 
1.6 	vulnerable children and adults; providing for data sharing; requiring eligibility 
1.7 	determinations; requiring the University of Minnesota to request funding for 
1.8 	rural primary care training; providing appointments; providing grants; requiring 
1.9 	studies and reports; appropriating money;amending Minnesota Statutes 2010, 
1.10 	sections 62D.02, subdivision 3; 62D.05, subdivision 6; 62D.12, subdivision 
1.11 	1; 62J.496, subdivision 2; 62Q.80; 62U.04, subdivisions 1, 2, 4, 5; 119B.13, 
1.12 	subdivision 3a; 144.1222, by adding a subdivision; 144.292, subdivision 6; 
1.13 	144.293, subdivision 2; 144A.351; 145.906; 245.697, subdivision 1; 245A.03, by 
1.14 	adding a subdivision; 245A.11, subdivision 7; 245B.07, subdivision 1; 245C.04, 
1.15 	subdivision 6; 245C.05, subdivision 7; 252.27, subdivision 2a; 254A.19, by 
1.16 	adding a subdivision; 256.01, by adding subdivisions; 256B.056, subdivision 1a; 
1.17 	256B.0625, subdivisions 9, 28a, by adding subdivisions; 256B.0659, by adding 
1.18 	a subdivision; 256B.0751, by adding a subdivision; 256B.0754, subdivision 
1.19 	2; 256B.0915, subdivision 3g; 256B.092, subdivisions 1b, 7; 256B.0943, 
1.20 	subdivision 9; 256B.431, subdivision 17e, by adding a subdivision; 256B.441, by 
1.21 	adding a subdivision; 256B.69, subdivision 9, by adding subdivisions; 256D.06, 
1.22 	subdivision 1b; 256D.44, subdivision 5; 256E.37, subdivision 1; 256I.05, 
1.23 	subdivision 1e; 256J.08, by adding a subdivision; 256J.26, subdivision 1, by 
1.24 	adding a subdivision; 256J.45, subdivision 2; 256J.50, by adding a subdivision; 
1.25 	256J.521, subdivision 2; 462A.29; 518A.40, subdivision 4; Minnesota Statutes 
1.26 	2011 Supplement, sections 62U.04, subdivisions 3, 9; 119B.13, subdivision 
1.27 	7; 245A.03, subdivision 7; 256.045, subdivision 3; 256.987, subdivisions 1, 
1.28 	2, by adding subdivisions; 256B.056, subdivision 3; 256B.057, subdivision 
1.29 	9; 256B.0625, subdivision 38; 256B.0911, subdivisions 3a, 3c; 256B.0915, 
1.30 	subdivisions 3e, 3h; 256B.097, subdivision 3; 256B.49, subdivisions 14, 15, 23; 
1.31 	256B.5012, subdivision 13; 256B.69, subdivisions 5a, 5c; 256E.35, subdivisions 
1.32 	5, 6; 256I.05, subdivision 1a; 256J.49, subdivision 13; 256L.12, subdivision 9; 
1.33 	256M.40, subdivision 1; Laws 2010, chapter 374, section 1; Laws 2011, First 
1.34 	Special Session chapter 9, article 7, section 54; article 9, section 18; article 10, 
1.35 	section 3, subdivisions 3, 4; proposing coding for new law in Minnesota Statutes, 
1.36 	chapters 144; 256B.
1.37 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.1 	ARTICLE 1
2.2 	HEALTH CARE

2.3 	Section 1. Minnesota Statutes 2010, section 256B.0625, subdivision 9, is amended to 
2.4 	read:
2.5 		Subd. 9.Dental services. (a) Medical assistance covers dental services.
2.6 	(b) Medical assistance dental coverage for nonpregnant adults is limited to the 
2.7 	following services:
2.8 	(1) comprehensive exams, limited to once every five years;
2.9 	(2) periodic exams, limited to one per year;
2.10 	(3) limited exams;
2.11 	(4) bitewing x-rays, limited to one per year;
2.12 	(5) periapical x-rays;
2.13 	(6) panoramic x-rays, limited to one every five years except (1) when medically 
2.14 	necessary for the diagnosis and follow-up of oral and maxillofacial pathology and trauma 
2.15 	or (2) once every two years for patients who cannot cooperate for intraoral film due to 
2.16 	a developmental disability or medical condition that does not allow for intraoral film 
2.17 	placement;
2.18 	(7) prophylaxis, limited to one per year;
2.19 	(8) application of fluoride varnish, limited to one per year;
2.20 	(9) posterior fillings, all at the amalgam rate;
2.21 	(10) anterior fillings;
2.22 	(11) endodontics, limited to root canals on the anterior and premolars only;
2.23 	(12) removable prostheses, each dental arch limited to one every six years;
2.24 	(13) oral surgery, limited to extractions, biopsies, and incision and drainage of 
2.25 	abscesses;
2.26 	(14) palliative treatment and sedative fillings for relief of pain; and
2.27 	(15) full-mouth debridement, limited to one every five years.
2.28 	(c) In addition to the services specified in paragraph (b), medical assistance 
2.29 	covers the following services for adults, if provided in an outpatient hospital setting or 
2.30 	freestanding ambulatory surgical center as part of outpatient dental surgery:
2.31 	(1) periodontics, limited to periodontal scaling and root planing once every two 
2.32 	years;
2.33 	(2) general anesthesia; and
2.34 	(3) full-mouth survey once every five years.
3.1 	(d) Medical assistance covers medically necessary dental services for children and 
3.2 	pregnant women. The following guidelines apply:
3.3 	(1) posterior fillings are paid at the amalgam rate;
3.4 	(2) application of sealants are covered once every five years per permanent molar for 
3.5 	children only;
3.6 	(3) application of fluoride varnish is covered once every six months; and
3.7 	(4) orthodontia is eligible for coverage for children only.
3.8 	(e) In addition to the services specified in paragraphs (b) and (c), medical assistance 
3.9 	covers the following services for developmentally disabled adults:
3.10 	(1) behavioral management when additional staff time is required to accommodate 
3.11 	behavioral challenges and sedation is not used; and
3.12 	(2) oral or IV conscious sedation, if the covered dental service cannot be performed 
3.13 	safely without it or would otherwise require the service to be performed under general 
3.14 	anesthesia in a hospital or surgical center.

3.15 	Sec. 2. Minnesota Statutes 2010, section 256B.0625, is amended by adding a 
3.16 	subdivision to read:
3.17 		Subd. 18c.Nonemergency Medical Transportation Advisory Committee. (a) 
3.18 	The 17-member Nonemergency Medical Transportation Advisory Committee shall advise 
3.19 	the commissioner on the administration of nonemergency medical transportation covered 
3.20 	under medical assistance. The advisory committee shall meet at least quarterly and may 
3.21 	meet more frequently as required by the commissioner. The advisory committee shall 
3.22 	annually elect a chair from among its members, who shall work with the commissioner or 
3.23 	the commissioner's designee to establish the agenda for each meeting.
3.24 	(b) The Nonemergency Medical Transportation Advisory Committee shall advise 
3.25 	and make recommendations to the commissioner on:
3.26 	(1) the development of, and periodic updates to, a policy manual for nonemergency 
3.27 	medical transportation services;
3.28 	(2) policies and a funding source for reimbursing no-load miles;
3.29 	(3) policies to prevent waste, fraud, and abuse, and to improve the efficiency of the 
3.30 	nonemergency medical transportation system;
3.31 	(4) other issues identified in the 2011 evaluation report by the Office of the 
3.32 	Legislative Auditor on medical nonemergency transportation; and
3.33 	(5) other aspects of the nonemergency medical transportation system, as requested 
3.34 	by the commissioner.
4.1 	(c) The Nonemergency Medical Transportation Advisory Committee shall 
4.2 	coordinate its activities with the Minnesota Council on Transportation Access established 
4.3 	under section 174.285.
4.4 	(d) The Nonemergency Medical Transportation Advisory Committee shall expire 
4.5 	December 1, 2014.

4.6 	Sec. 3. Minnesota Statutes 2010, section 256B.0625, is amended by adding a 
4.7 	subdivision to read:
4.8 		Subd. 18d.Advisory committee members. (a) The Nonemergency Medical 
4.9 	Transportation Advisory Committee consists of:
4.10 	(1) two voting members who represent counties, at least one of whom must represent 
4.11 	a county or counties other than Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, 
4.12 	Ramsey, Scott, Sherburne, Washington, and Wright;
4.13 	(2) four voting members who represent medical assistance recipients, including 
4.14 	persons with physical and developmental disabilities, persons with mental illness, seniors, 
4.15 	children, and low-income individuals;
4.16 	(3) four voting members who represent providers that deliver nonemergency medical 
4.17 	transportation services to medical assistance enrollees;
4.18 	(4) two voting members of the house of representatives, one from the majority 
4.19 	party and one from the minority party, appointed by the speaker of the house, and two 
4.20 	voting members from the senate, one from the majority party and one from the minority 
4.21 	party, appointed by the Subcommittee on Committees of the Committee on Rules and 
4.22 	Administration;
4.23 	(5) one voting member who represents demonstration providers as defined in section 
4.24 	256B.69, subdivision 2;
4.25 	(6) one voting member who represents an organization that contracts with state or 
4.26 	local governments to coordinate transportation services for medical assistance enrollees; 
4.27 	and
4.28 	(7) the commissioner of transportation or the commissioner's designee, who shall 
4.29 	serve as a voting member.
4.30 	(b) Members of the advisory committee shall not be employed by the Department 
4.31 	of Human Services.

4.32 	Sec. 4. Minnesota Statutes 2010, section 256B.0625, subdivision 28a, is amended to 
4.33 	read:
5.1 		Subd. 28a.Licensed physician assistant services. (a) Medical assistance covers 
5.2 	services performed by a licensed physician assistant if the service is otherwise covered 
5.3 	under this chapter as a physician service and if the service is within the scope of practice 
5.4 	of a licensed physician assistant as defined in section 147A.09.
5.5 	(b) Licensed physician assistants, who are supervised by a physician certified by 
5.6 	the American Board of Psychiatry and Neurology or eligible for board certification in 
5.7 	psychiatry, may bill for medication management and evaluation and management services 
5.8 	provided to medical assistance enrollees in inpatient hospital settings, consistent with 
5.9 	their authorized scope of practice, as defined in section 147A.09, with the exception of 
5.10 	performing psychotherapy or providing clinical supervision.

5.11 	Sec. 5. Minnesota Statutes 2011 Supplement, section 256B.0625, subdivision 38, 
5.12 	is amended to read:
5.13 		Subd. 38.Payments for mental health services. Payments for mental 
5.14 	health services covered under the medical assistance program that are provided by 
5.15 	masters-prepared mental health professionals shall be 80 percent of the rate paid to 
5.16 	doctoral-prepared professionals. Payments for mental health services covered under 
5.17 	the medical assistance program that are provided by masters-prepared mental health 
5.18 	professionals employed by community mental health centers shall be 100 percent of the 
5.19 	rate paid to doctoral-prepared professionals. Payments for mental health services covered 
5.20 	under the medical assistance program that are provided by physician assistants shall be 65 
5.21 	percent of the rate paid to doctoral-prepared professionals.

5.22 	Sec. 6. Minnesota Statutes 2010, section 256B.0625, is amended by adding a 
5.23 	subdivision to read:
5.24 		Subd. 60.Community paramedic services. (a) Medical assistance covers services 
5.25 	provided by community paramedics who are certified under section 144E.28, subdivision 
5.26 	9, when the services are provided in accordance with this subdivision to an eligible 
5.27 	recipient as defined in paragraph (b).
5.28 	(b) For purposes of this subdivision, an eligible recipient is defined as an individual 
5.29 	who has received hospital emergency department services three or more times in a period 
5.30 	of four consecutive months in the past 12 months, or an individual who has been identified 
5.31 	by the individual's primary health care provider for whom community paramedic services 
5.32 	identified in paragraph (c) would likely prevent admission to or would allow discharge 
5.33 	from a nursing facility, or would likely prevent readmission to a hospital or nursing facility.
6.1 	(c) Payment for services provided by a community paramedic under this subdivision 
6.2 	must be a part of a care plan ordered by a primary health care provider in consultation with 
6.3 	the medical director of an ambulance service and must be billed by an eligible provider 
6.4 	enrolled in medical assistance that employs or contracts with the community paramedic. 
6.5 	The care plan must ensure that the services provided by a community paramedic are 
6.6 	coordinated with other community health providers and local public health agencies and 
6.7 	that community paramedic services do not duplicate services already provided to the 
6.8 	patient, including home health and waiver services. Community paramedic services 
6.9 	shall include health assessment, chronic disease monitoring and education, medication 
6.10 	compliance, immunizations and vaccinations, laboratory specimen collection, hospital 
6.11 	discharge follow-up care, and minor medical procedures approved by the ambulance 
6.12 	medical director.
6.13 	(d) Services provided by a community paramedic to an eligible recipient who is 
6.14 	also receiving care coordination services must be in consultation with the providers of 
6.15 	the recipient's care coordination services. 
6.16 	(e) The commissioner shall seek the necessary federal approval to implement this 
6.17 	subdivision. 

6.18 	EFFECTIVE DATE. This section is effective July 1, 2012, or upon federal 
6.19 	approval, whichever is later.

6.20 	Sec. 7. Minnesota Statutes 2010, section 256B.0751, is amended by adding a 
6.21 	subdivision to read:
6.22 		Subd. 9.Pediatric care coordination. The commissioner shall implement a 
6.23 	pediatric care coordination service for children with high-cost medical or high-cost 
6.24 	psychiatric conditions who are at risk of recurrent hospitalization or emergency room use 
6.25 	for acute, chronic, or psychiatric illness, who receive medical assistance services. Care 
6.26 	coordination services must be targeted to children not already receiving care coordination 
6.27 	through another service and may include but are not limited to the provision of health 
6.28 	care home services to children admitted to hospitals that do not currently provide care 
6.29 	coordination. Care coordination services must be provided by care coordinators who 
6.30 	are directly linked to provider teams in the care delivery setting, but who may be part 
6.31 	of a community care team shared by multiple primary care providers or practices. For 
6.32 	purposes of this subdivision, the commissioner shall, to the extent possible, use the 
6.33 	existing health care home certification and payment structure established under this 
6.34 	section and section 256B.0753.

7.1 	Sec. 8. Minnesota Statutes 2010, section 256B.441, is amended by adding a 
7.2 	subdivision to read:
7.3 		Subd. 63.Special needs nursing facility rate adjustment. The commissioner may 
7.4 	increase the medical assistance payment rate for a nursing facility that is participating 
7.5 	in a health care delivery system demonstration project under sections 256B.0755 or 
7.6 	256B.0756, or another care coordination project, if the nursing facility has agreed to 
7.7 	accept patients enrolled in the project in order to reduce hospital or emergency room 
7.8 	admissions or readmissions, shorten the length of inpatient hospital stays, or prevent a 
7.9 	medical emergency that would require more costly treatment.  The higher rate must reflect 
7.10 	the higher costs of participating in the care coordination demonstration project and the 
7.11 	higher costs of serving patients with more complex medical, dental, mental health, and 
7.12 	socioeconomic conditions.

7.13 	Sec. 9. Minnesota Statutes 2011 Supplement, section 256B.69, subdivision 5a, is 
7.14 	amended to read:
7.15 		Subd. 5a.Managed care contracts. (a) Managed care contracts under this section 
7.16 	and section 256L.12 shall be entered into or renewed on a calendar year basis beginning 
7.17 	January 1, 1996. Managed care contracts which were in effect on June 30, 1995, and set to 
7.18 	renew on July 1, 1995, shall be renewed for the period July 1, 1995 through December 
7.19 	31, 1995 at the same terms that were in effect on June 30, 1995. The commissioner may 
7.20 	issue separate contracts with requirements specific to services to medical assistance 
7.21 	recipients age 65 and older.
7.22 	(b) A prepaid health plan providing covered health services for eligible persons 
7.23 	pursuant to chapters 256B and 256L is responsible for complying with the terms of its 
7.24 	contract with the commissioner. Requirements applicable to managed care programs 
7.25 	under chapters 256B and 256L established after the effective date of a contract with the 
7.26 	commissioner take effect when the contract is next issued or renewed.
7.27 	(c) Effective for services rendered on or after January 1, 2003, the commissioner 
7.28 	shall withhold five percent of managed care plan payments under this section and 
7.29 	county-based purchasing plan payments under section 256B.692 for the prepaid medical 
7.30 	assistance program pending completion of performance targets. Each performance 
7.31 	target must be quantifiable, objective, measurable, and reasonably attainable, except 
7.32 	in the case of a performance target based on a federal or state law or rule. Criteria for 
7.33 	assessment of each performance target must be outlined in writing prior to the contract 
7.34 	effective date. Clinical or utilization performance targets and their related criteria 
7.35 	must be based on evidence-based research showing they can be achieved through 
8.1 	reasonable interventions, and developed with input from independent clinical experts 
8.2 	and stakeholders, including managed care plans and providers. The managed care plan 
8.3 	must demonstrate, to the commissioner's satisfaction, that the data submitted regarding 
8.4 	attainment of the performance target is accurate. The commissioner shall periodically 
8.5 	change the administrative measures used as performance targets in order to improve plan 
8.6 	performance across a broader range of administrative services. The performance targets 
8.7 	must include measurement of plan efforts to contain spending on health care services and 
8.8 	administrative activities. The commissioner may adopt plan-specific performance targets 
8.9 	that take into account factors affecting only one plan, including characteristics of the 
8.10 	plan's enrollee population. The withheld funds must be returned no sooner than July of the 
8.11 	following year if performance targets in the contract are achieved. The commissioner may 
8.12 	exclude special demonstration projects under subdivision 23.
8.13 	(d) Effective for services rendered on or after January 1, 2009, through December 
8.14 	31, 2009, the commissioner shall withhold three percent of managed care plan payments 
8.15 	under this section and county-based purchasing plan payments under section 256B.692 
8.16 	for the prepaid medical assistance program. The withheld funds must be returned no 
8.17 	sooner than July 1 and no later than July 31 of the following year. The commissioner may 
8.18 	exclude special demonstration projects under subdivision 23.
8.19 	(e) Effective for services provided on or after January 1, 2010, the commissioner 
8.20 	shall require that managed care plans use the assessment and authorization processes, 
8.21 	forms, timelines, standards, documentation, and data reporting requirements, protocols, 
8.22 	billing processes, and policies consistent with medical assistance fee-for-service or the 
8.23 	Department of Human Services contract requirements consistent with medical assistance 
8.24 	fee-for-service or the Department of Human Services contract requirements for all 
8.25 	personal care assistance services under section 256B.0659.
8.26 	(f) Effective for services rendered on or after January 1, 2010, through December 
8.27 	31, 2010, the commissioner shall withhold 4.5 percent of managed care plan payments 
8.28 	under this section and county-based purchasing plan payments under section 256B.692 
8.29 	for the prepaid medical assistance program. The withheld funds must be returned no 
8.30 	sooner than July 1 and no later than July 31 of the following year. The commissioner may 
8.31 	exclude special demonstration projects under subdivision 23.
8.32 	(g) Effective for services rendered on or after January 1, 2011, through December 
8.33 	31, 2011, the commissioner shall include as part of the performance targets described 
8.34 	in paragraph (c) a reduction in the health plan's emergency room utilization rate for 
8.35 	state health care program enrollees by a measurable rate of five percent from the plan's 
8.36 	utilization rate for state health care program enrollees for the previous calendar year. 
9.1 	Effective for services rendered on or after January 1, 2012, the commissioner shall include 
9.2 	as part of the performance targets described in paragraph (c) a reduction in the health 
9.3 	plan's emergency department utilization rate for medical assistance and MinnesotaCare 
9.4 	enrollees, as determined by the commissioner. For calendar year 2012, the reduction shall 
9.5 	be based on the health plan's utilization in calendar year 2009, and to earn the return of 
9.6 	the withhold for that year, the plan must achieve a qualifying reduction of no less than 
9.7 	ten percent compared to calendar year 2009. To earn the return of the withhold each
9.8 	subsequent year, the managed care plan or county-based purchasing plan must achieve 
9.9 	a qualifying reduction of no less than ten percent of the plan's emergency department 
9.10 	utilization rate for medical assistance and MinnesotaCare enrollees, excluding Medicare 
9.11 	enrollees, compared to the previous calendar year, until the final performance target is 
9.12 	reached. Measurement of performance shall take into account the difference in health risk 
9.13 	in a plan's membership in the baseline year compared to the measurement year.
9.14 	The withheld funds must be returned no sooner than July 1 and no later than July 31 
9.15 	of the following calendar year if the managed care plan or county-based purchasing plan 
9.16 	demonstrates to the satisfaction of the commissioner that a reduction in the utilization rate 
9.17 	was achieved. The commissioner shall structure the withhold so that the commissioner 
9.18 	returns a portion of the withheld funds in amounts commensurate with achieved reductions 
9.19 	in utilization less than the targeted amount.
9.20 	The withhold described in this paragraph shall continue for each consecutive 
9.21 	contract period until the plan's emergency room utilization rate for state health care 
9.22 	program enrollees is reduced by 25 percent of the plan's emergency room utilization 
9.23 	rate for medical assistance and MinnesotaCare enrollees for calendar year 20112009. 
9.24 	Hospitals shall cooperate with the health plans in meeting this performance target and 
9.25 	shall accept payment withholds that may be returned to the hospitals if the performance 
9.26 	target is achieved.
9.27 	(h) Effective for services rendered on or after January 1, 2012, the commissioner 
9.28 	shall include as part of the performance targets described in paragraph (c) a reduction 
9.29 	in the plan's hospitalization admission rate for medical assistance and MinnesotaCare 
9.30 	enrollees, as determined by the commissioner. To earn the return of the withhold each 
9.31 	year, the managed care plan or county-based purchasing plan must achieve a qualifying 
9.32 	reduction of no less than five percent of the plan's hospital admission rate for medical 
9.33 	assistance and MinnesotaCare enrollees, excluding Medicare enrollees, compared to the 
9.34 	previous calendar year until the final performance target is reached. Measurement of 
9.35 	performance shall take into account the difference in health risk in a plan's membership 
9.36 	in the baseline year compared to the measurement year.
10.1 	The withheld funds must be returned no sooner than July 1 and no later than July 
10.2 	31 of the following calendar year if the managed care plan or county-based purchasing 
10.3 	plan demonstrates to the satisfaction of the commissioner that this reduction in the 
10.4 	hospitalization rate was achieved. The commissioner shall structure the withhold so that 
10.5 	the commissioner returns a portion of the withheld funds in amounts commensurate with 
10.6 	achieved reductions in utilization less than the targeted amount.
10.7 	The withhold described in this paragraph shall continue until there is a 25 percent 
10.8 	reduction in the hospital admission rate compared to the hospital admission rates in 
10.9 	calendar year 2011, as determined by the commissioner. The hospital admissions in this 
10.10 	performance target do not include the admissions applicable to the subsequent hospital 
10.11 	admission performance target under paragraph (i). Hospitals shall cooperate with the 
10.12 	plans in meeting this performance target and shall accept payment withholds that may be 
10.13 	returned to the hospitals if the performance target is achieved.
10.14 	(i) Effective for services rendered on or after January 1, 2012, the commissioner 
10.15 	shall include as part of the performance targets described in paragraph (c) a reduction in 
10.16 	the plan's hospitalization admission rates for subsequent hospitalizations within 30 days 
10.17 	of a previous hospitalization of a patient regardless of the reason, for medical assistance 
10.18 	and MinnesotaCare enrollees, as determined by the commissioner. To earn the return of 
10.19 	the withhold each year, the managed care plan or county-based purchasing plan must 
10.20 	achieve a qualifying reduction of the subsequent hospitalization rate for medical assistance 
10.21 	and MinnesotaCare enrollees, excluding Medicare enrollees, of no less than five percent 
10.22 	compared to the previous calendar year until the final performance target is reached.
10.23 	The withheld funds must be returned no sooner than July 1 and no later than July 
10.24 	31 of the following calendar year if the managed care plan or county-based purchasing 
10.25 	plan demonstrates to the satisfaction of the commissioner that a qualifying reduction in 
10.26 	the subsequent hospitalization rate was achieved. The commissioner shall structure the 
10.27 	withhold so that the commissioner returns a portion of the withheld funds in amounts 
10.28 	commensurate with achieved reductions in utilization less than the targeted amount.
10.29 	The withhold described in this paragraph must continue for each consecutive 
10.30 	contract period until the plan's subsequent hospitalization rate for medical assistance and 
10.31 	MinnesotaCare enrollees, excluding Medicare enrollees, is reduced by 25 percent of the 
10.32 	plan's subsequent hospitalization rate for calendar year 2011. Hospitals shall cooperate 
10.33 	with the plans in meeting this performance target and shall accept payment withholds that 
10.34 	must be returned to the hospitals if the performance target is achieved.
10.35 	(j) Effective for services rendered on or after January 1, 2011, through December 31, 
10.36 	2011, the commissioner shall withhold 4.5 percent of managed care plan payments under 
11.1 	this section and county-based purchasing plan payments under section 256B.692 for the 
11.2 	prepaid medical assistance program. The withheld funds must be returned no sooner than 
11.3 	July 1 and no later than July 31 of the following year. The commissioner may exclude 
11.4 	special demonstration projects under subdivision 23.
11.5 	(k) Effective for services rendered on or after January 1, 2012, through December 
11.6 	31, 2012, the commissioner shall withhold 4.5 percent of managed care plan payments 
11.7 	under this section and county-based purchasing plan payments under section 256B.692 
11.8 	for the prepaid medical assistance program. The withheld funds must be returned no 
11.9 	sooner than July 1 and no later than July 31 of the following year. The commissioner may 
11.10 	exclude special demonstration projects under subdivision 23.
11.11 	(l) Effective for services rendered on or after January 1, 2013, through December 31, 
11.12 	2013, the commissioner shall withhold 4.5 percent of managed care plan payments under 
11.13 	this section and county-based purchasing plan payments under section 256B.692 for the 
11.14 	prepaid medical assistance program. The withheld funds must be returned no sooner than 
11.15 	July 1 and no later than July 31 of the following year. The commissioner may exclude 
11.16 	special demonstration projects under subdivision 23.
11.17 	(m) Effective for services rendered on or after January 1, 2014, the commissioner 
11.18 	shall withhold three percent of managed care plan payments under this section and 
11.19 	county-based purchasing plan payments under section 256B.692 for the prepaid medical 
11.20 	assistance program. The withheld funds must be returned no sooner than July 1 and 
11.21 	no later than July 31 of the following year. The commissioner may exclude special 
11.22 	demonstration projects under subdivision 23.
11.23 	(n) A managed care plan or a county-based purchasing plan under section 256B.692 
11.24 	may include as admitted assets under section 62D.044 any amount withheld under this 
11.25 	section that is reasonably expected to be returned.
11.26 	(o) Contracts between the commissioner and a prepaid health plan are exempt from 
11.27 	the set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph 
11.28 	(a), and 7.
11.29 	(p) The return of the withhold under paragraphs (d), (f), and (j) to (m) is not subject 
11.30 	to the requirements of paragraph (c).

11.31 	Sec. 10. Minnesota Statutes 2011 Supplement, section 256B.69, subdivision 5c, 
11.32 	is amended to read:
11.33 		Subd. 5c.Medical education and research fund. (a) The commissioner of human 
11.34 	services shall transfer each year to the medical education and research fund established 
12.1 	under section 62J.692, an amount specified in this subdivision. The commissioner shall 
12.2 	calculate the following:
12.3 	(1) an amount equal to the reduction in the prepaid medical assistance payments as 
12.4 	specified in this clause. Until January 1, 2002, the county medical assistance capitation 
12.5 	base rate prior to plan specific adjustments and after the regional rate adjustments under 
12.6 	subdivision 5b is reduced 6.3 percent for Hennepin County, two percent for the remaining 
12.7 	metropolitan counties, and no reduction for nonmetropolitan Minnesota counties; and after 
12.8 	January 1, 2002, the county medical assistance capitation base rate prior to plan specific 
12.9 	adjustments is reduced 6.3 percent for Hennepin County, two percent for the remaining 
12.10 	metropolitan counties, and 1.6 percent for nonmetropolitan Minnesota counties. Nursing 
12.11 	facility and elderly waiver payments and demonstration project payments operating 
12.12 	under subdivision 23 are excluded from this reduction. The amount calculated under 
12.13 	this clause shall not be adjusted for periods already paid due to subsequent changes to 
12.14 	the capitation payments;
12.15 	(2) beginning July 1, 2003, $4,314,000 from the capitation rates paid under this 
12.16 	section;
12.17 	(3) beginning July 1, 2002, an additional $12,700,000 from the capitation rates 
12.18 	paid under this section; and
12.19 	(4) beginning July 1, 2003, an additional $4,700,000 from the capitation rates paid 
12.20 	under this section.
12.21 	(b) This subdivision shall be effective upon approval of a federal waiver which 
12.22 	allows federal financial participation in the medical education and research fund. The 
12.23 	amount specified under paragraph (a), clauses (1) to (4), shall not exceed the total amount 
12.24 	transferred for fiscal year 2009. Any excess shall first reduce the amounts specified under 
12.25 	paragraph (a), clauses (2) to (4). Any excess following this reduction shall proportionally 
12.26 	reduce the amount specified under paragraph (a), clause (1).
12.27 	(c) Beginning September 1, 2011, of the amount in paragraph (a), the commissioner 
12.28 	shall transfer $21,714,000 each fiscal year to the medical education and research fund.
12.29 	(d) Beginning September 1, 2011, of the amount in paragraph (a), following the 
12.30 	transfer under paragraph (c), the commissioner shall transfer to the medical education 
12.31 	research fund $23,936,000 in fiscal years year 2012 and, $24,936,000 in fiscal year  2013,
12.32 	and $36,744,000 $37,744,000 in fiscal year 2014 and thereafter.

12.33 	Sec. 11. Minnesota Statutes 2010, section 256B.69, subdivision 9, is amended to read:
12.34 		Subd. 9.Reporting. (a) Each demonstration provider shall submit information as 
12.35 	required by the commissioner, including data required for assessing client satisfaction, 
13.1 	quality of care, cost, and utilization of services for purposes of project evaluation. The 
13.2 	commissioner shall also develop methods of data reporting and collection in order to 
13.3 	provide aggregate enrollee information on encounters and outcomes to determine access 
13.4 	and quality assurance. Required information shall be specified before the commissioner 
13.5 	contracts with a demonstration provider.
13.6 	(b) Aggregate nonpersonally identifiable health plan encounter data, aggregate 
13.7 	spending data for major categories of service as reported to the commissioners of 
13.8 	health and commerce under section 62D.08, subdivision 3, clause (a), and criteria for 
13.9 	service authorization and service use are public data that the commissioner shall make 
13.10 	available and use in public reports. The commissioner shall require each health plan and 
13.11 	county-based purchasing plan to provide:
13.12 	(1) encounter data for each service provided, using standard codes and unit of 
13.13 	service definitions set by the commissioner, in a form that the commissioner can report by 
13.14 	age, eligibility groups, and health plan; and
13.15 	(2) criteria, written policies, and procedures required to be disclosed under section 
13.16 	62M.10, subdivision 7, and Code of Federal Regulations, title 42, part 438.210(b)(1), used 
13.17 	for each type of service for which authorization is required.
13.18 	(c) Each demonstration provider shall report to the commissioner on the extent to 
13.19 	which providers employed by or under contract with the demonstration provider use 
13.20 	patient-centered decision-making tools or procedures designed to engage patients early 
13.21 	in the decision-making process and the steps taken by the demonstration provider to 
13.22 	encourage their use.

13.23 	Sec. 12. Minnesota Statutes 2010, section 256B.69, is amended by adding a 
13.24 	subdivision to read:
13.25 		Subd. 32.Initiatives to reduce incidence of low birth weight. The commissioner 
13.26 	shall require managed care and county-based purchasing plans, as a condition of contract, 
13.27 	to implement strategies to reduce the incidence of low birth weight in geographic areas 
13.28 	identified by the commissioner as having a higher than average incidence of low birth 
13.29 	weight. The strategies must coordinate health care with social services and the local 
13.30 	public health system. Each plan shall develop and report to the commissioner outcome 
13.31 	measures related to reducing the incidence of low birth weight. The commissioner shall 
13.32 	consider the outcomes reported when considering plan participation in the competitive 
13.33 	bidding program established under subdivision 33.

14.1 	Sec. 13. Minnesota Statutes 2010, section 256B.69, is amended by adding a 
14.2 	subdivision to read:
14.3 		Subd. 33.Competitive bidding. (a) For managed care contracts effective on or 
14.4 	after January 1, 2014, the commissioner may utilize a competitive price bidding program 
14.5 	for nonelderly, nondisabled adults and children in medical assistance and MinnesotaCare 
14.6 	in the seven-county metropolitan area. The program must allow a minimum of two 
14.7 	managed care plans to serve the metropolitan area.
14.8 	(b) In designing the competitive bid program, the commissioner shall consider, and 
14.9 	incorporate where appropriate, the procedures and criteria used in the competitive bidding 
14.10 	pilot authorized under Laws 2011, First Special Session chapter 9, article 6, section 96.
14.11 	(c) The commissioner shall use past performance data as a factor in selecting vendors 
14.12 	and shall consider this information, along with competitive bid and other information, in 
14.13 	determining whether to contract with a managed care plan under this subdivision. Where 
14.14 	possible, the assessment of past performance in serving persons on public programs shall 
14.15 	be based on encounter data submitted to the commissioner. The commissioner shall 
14.16 	evaluate past performance based on both the health outcomes of care and success rates 
14.17 	in securing participation in recommended preventive and early diagnostic care. Data 
14.18 	provided by managed care plans must be provided in a uniform manner as specified by 
14.19 	the commissioner and must include only data on medical assistance and MinnesotaCare 
14.20 	enrollees. The data submitted must include health outcome measures on reducing the 
14.21 	incidence of low birth weight established by the managed care plan under subdivision 32.

14.22 	Sec. 14. Minnesota Statutes 2011 Supplement, section 256L.12, subdivision 9, is 
14.23 	amended to read:
14.24 		Subd. 9.Rate setting; performance withholds. (a) Rates will be prospective, 
14.25 	per capita, where possible. The commissioner may allow health plans to arrange for 
14.26 	inpatient hospital services on a risk or nonrisk basis. The commissioner shall consult with 
14.27 	an independent actuary to determine appropriate rates.
14.28 	(b) For services rendered on or after January 1, 2004, the commissioner shall 
14.29 	withhold five percent of managed care plan payments and county-based purchasing 
14.30 	plan payments under this section pending completion of performance targets. Each 
14.31 	performance target must be quantifiable, objective, measurable, and reasonably attainable, 
14.32 	except in the case of a performance target based on a federal or state law or rule. 
14.33 	Criteria for assessment of each performance target must be outlined in writing prior to 
14.34 	the contract effective date. Clinical or utilization performance targets and their related 
14.35 	criteria must be based on evidence-based research showing they can be achieved through 
15.1 	reasonable interventions, and developed with input from independent clinical experts 
15.2 	and stakeholders, including managed care plans and providers. The managed care plan 
15.3 	must demonstrate, to the commissioner's satisfaction, that the data submitted regarding 
15.4 	attainment of the performance target is accurate. The commissioner shall periodically 
15.5 	change the administrative measures used as performance targets in order to improve plan 
15.6 	performance across a broader range of administrative services. The performance targets 
15.7 	must include measurement of plan efforts to contain spending on health care services 
15.8 	and administrative activities. The commissioner may adopt plan-specific performance 
15.9 	targets that take into account factors affecting only one plan, such as characteristics of 
15.10 	the plan's enrollee population. The withheld funds must be returned no sooner than July 
15.11 	1 and no later than July 31 of the following calendar year if performance targets in the 
15.12 	contract are achieved.
15.13 	(c) For services rendered on or after January 1, 2011, the commissioner shall 
15.14 	withhold an additional three percent of managed care plan or county-based purchasing 
15.15 	plan payments under this section. The withheld funds must be returned no sooner than 
15.16 	July 1 and no later than July 31 of the following calendar year. The return of the withhold 
15.17 	under this paragraph is not subject to the requirements of paragraph (b).
15.18 	(d) Effective for services rendered on or after January 1, 2011, through December 
15.19 	31, 2011, the commissioner shall include as part of the performance targets described in 
15.20 	paragraph (b) a reduction in the plan's emergency room utilization rate for state health 
15.21 	care program enrollees by a measurable rate of five percent from the plan's utilization 
15.22 	rate for the previous calendar year. Effective for services rendered on or after January 
15.23 	1, 2012, the commissioner shall include as part of the performance targets described in 
15.24 	paragraph (b) a reduction in the health plan's emergency department utilization rate for 
15.25 	medical assistance and MinnesotaCare enrollees, as determined by the commissioner. For 
15.26 	calendar year 2012, the reduction shall be based on the health plan's utilization in calendar 
15.27 	year 2009, and to earn the return of the withhold for that year, the plan must achieve a 
15.28 	qualifying reduction of no less than ten percent compared to calendar year 2009. To earn 
15.29 	the return of the withhold each subsequent year, the managed care plan or county-based 
15.30 	purchasing plan must achieve a qualifying reduction of no less than ten percent of the 
15.31 	plan's utilization rate for medical assistance and MinnesotaCare enrollees, excluding 
15.32 	Medicare enrollees, compared to the previous calendar year, until the final performance 
15.33 	target is reached. Measurement of performance shall take into account the difference in 
15.34 	health risk in a plan's membership in the baseline year compared to the measurement year.
15.35 	The withheld funds must be returned no sooner than July 1 and no later than July 31 
15.36 	of the following calendar year if the managed care plan or county-based purchasing plan 
16.1 	demonstrates to the satisfaction of the commissioner that a reduction in the utilization rate 
16.2 	was achieved. The commissioner shall structure the withhold so that the commissioner 
16.3 	returns a portion of the withheld funds in amounts commensurate with achieved reductions 
16.4 	in utilization less than the targeted amount.
16.5 	The withhold described in this paragraph shall continue for each consecutive 
16.6 	contract period until the plan's emergency room utilization rate for state health care 
16.7 	program enrollees is reduced by 25 percent of the plan's emergency room utilization 
16.8 	rate for medical assistance and MinnesotaCare enrollees for calendar year 2011 2009. 
16.9 	Hospitals shall cooperate with the health plans in meeting this performance target and 
16.10 	shall accept payment withholds that may be returned to the hospitals if the performance 
16.11 	target is achieved.
16.12 	(e) Effective for services rendered on or after January 1, 2012, the commissioner 
16.13 	shall include as part of the performance targets described in paragraph (b) a reduction 
16.14 	in the plan's hospitalization admission rate for medical assistance and MinnesotaCare 
16.15 	enrollees, as determined by the commissioner. To earn the return of the withhold each 
16.16 	year, the managed care plan or county-based purchasing plan must achieve a qualifying 
16.17 	reduction of no less than five percent of the plan's hospital admission rate for medical 
16.18 	assistance and MinnesotaCare enrollees, excluding Medicare enrollees, compared to the 
16.19 	previous calendar year, until the final performance target is reached. Measurement of 
16.20 	performance shall take into account the difference in health risk in a plan's membership 
16.21 	in the baseline year compared to the measurement year.
16.22 	The withheld funds must be returned no sooner than July 1 and no later than July 
16.23 	31 of the following calendar year if the managed care plan or county-based purchasing 
16.24 	plan demonstrates to the satisfaction of the commissioner that this reduction in the 
16.25 	hospitalization rate was achieved. The commissioner shall structure the withhold so that 
16.26 	the commissioner returns a portion of the withheld funds in amounts commensurate with 
16.27 	achieved reductions in utilization less than the targeted amount.
16.28 	The withhold described in this paragraph shall continue until there is a 25 percent 
16.29 	reduction in the hospitals admission rate compared to the hospital admission rate for 
16.30 	calendar year 2011 as determined by the commissioner. Hospitals shall cooperate with the 
16.31 	plans in meeting this performance target and shall accept payment withholds that may be 
16.32 	returned to the hospitals if the performance target is achieved. The hospital admissions 
16.33 	in this performance target do not include the admissions applicable to the subsequent 
16.34 	hospital admission performance target under paragraph (f).
16.35 	(f) Effective for services provided on or after January 1, 2012, the commissioner 
16.36 	shall include as part of the performance targets described in paragraph (b) a reduction 
17.1 	in the plan's hospitalization rate for a subsequent hospitalization within 30 days of a 
17.2 	previous hospitalization of a patient regardless of the reason, for medical assistance and 
17.3 	MinnesotaCare enrollees, as determined by the commissioner. To earn the return of the 
17.4 	withhold each year, the managed care plan or county-based purchasing plan must achieve 
17.5 	a qualifying reduction of the subsequent hospital admissions rate for medical assistance 
17.6 	and MinnesotaCare enrollees, excluding Medicare enrollees, of no less than five percent 
17.7 	compared to the previous calendar year until the final performance target is reached.
17.8 	The withheld funds must be returned no sooner than July 1 and no later than July 31 
17.9 	of the following calendar year if the managed care plan or county-based purchasing plan 
17.10 	demonstrates to the satisfaction of the commissioner that a reduction in the subsequent 
17.11 	hospitalization rate was achieved. The commissioner shall structure the withhold so that 
17.12 	the commissioner returns a portion of the withheld funds in amounts commensurate with 
17.13 	achieved reductions in utilization less than the targeted amount.
17.14 	The withhold described in this paragraph must continue for each consecutive 
17.15 	contract period until the plan's subsequent hospitalization rate for medical assistance and 
17.16 	MinnesotaCare enrollees is reduced by 25 percent of the plan's subsequent hospitalization 
17.17 	rate for calendar year 2011. Hospitals shall cooperate with the plans in meeting this 
17.18 	performance target and shall accept payment withholds that must be returned to the 
17.19 	hospitals if the performance target is achieved.
17.20 	(g) A managed care plan or a county-based purchasing plan under section 256B.692 
17.21 	may include as admitted assets under section 62D.044 any amount withheld under this 
17.22 	section that is reasonably expected to be returned.

17.23 	Sec. 15. DATA ON CLAIMS AND UTILIZATION.
 17.24 	The commissioner of human services shall develop and provide to the legislature 
17.25 	by December 15, 2012, a methodology and any draft legislation necessary to allow for 
17.26 	the release, upon request, of summary data as defined in Minnesota Statutes, section 
17.27 	13.02, subdivision 19, on claims and utilization for medical assistance and MinnesotaCare 
17.28 	enrollees at no charge to the University of Minnesota Medical School, the Mayo Medical 
17.29 	School, Northwestern Health Sciences University, the Institute for Clinical Systems 
17.30 	Improvement, and other research institutions in Minnesota to conduct analyses of health 
17.31 	care outcomes and treatment effectiveness, provided:
17.32 	(1) a data-sharing agreement is in place that ensures compliance with the Minnesota 
17.33 	Government Data Practices Act;
18.1 	(2) the commissioner of human services determines that the work would produce 
18.2 	analyses useful in the administration of the medical assistance or MinnesotaCare 
18.3 	programs; and
18.4 	(3) the research institutions do not release private or nonpublic data or data for 
18.5 	which dissemination is prohibited by law.

18.6 	Sec. 16. MANAGING MEDICAL ASSISTANCE FEE-FOR-SERVICE CARE 
18.7 	DELIVERY.
 18.8 	The commissioner of human services shall issue, by July 1, 2012, a request for 
18.9 	proposals to develop and administer a care delivery management system for medical 
18.10 	assistance enrollees served under fee-for-service. The care delivery management system 
18.11 	must improve health care quality and reduce unnecessary health care costs through the: 
18.12 	(1) use of predictive modeling tools and comprehensive patient encounter data to identify 
18.13 	missed preventive care and other gaps in health care delivery and to identify chronically 
18.14 	ill and high-cost enrollees for targeted interventions and care management; (2) use of 
18.15 	claims data to evaluate health care providers for overall quality and cost-effectiveness 
18.16 	and make this information available to enrollees; and (3) establishment of a program 
18.17 	integrity initiative to reduce fraudulent or improper billing. The commissioner shall award 
18.18 	a contract under the request for proposals to a Minnesota-based organization by October 
18.19 	1, 2012. The contract must require the organization to implement the care delivery 
18.20 	management system by July 1, 2013.

18.21 	Sec. 17. PHYSICIAN ASSISTANTS AND OUTPATIENT MENTAL HEALTH.
 18.22 	The commissioner of human services shall convene a group of interested 
18.23 	stakeholders to assist the commissioner in developing recommendations on how to 
18.24 	improve access to, and the quality of, outpatient mental health services for medical 
18.25 	assistance enrollees through the use of physician assistants. The commissioner shall report 
18.26 	these recommendations to the chairs and ranking minority members of the legislative 
18.27 	committees with jurisdiction over health care policy and financing by January 15, 2013.

18.28 	ARTICLE 2
18.29 	DEPARTMENT OF HEALTH

18.30 	Section 1. Minnesota Statutes 2010, section 62D.02, subdivision 3, is amended to read:
18.31 		Subd. 3.Commissioner of health commerce or commissioner. "Commissioner of 
18.32 	health commerce" or "commissioner" means the state commissioner of health commerce
18.33 	or a designee.

19.1 	EFFECTIVE DATE. This section is effective August 1, 2012.

19.2 	Sec. 2. Minnesota Statutes 2010, section 62D.05, subdivision 6, is amended to read:
19.3 		Subd. 6.Supplemental benefits. (a) A health maintenance organization may, as 
19.4 	a supplemental benefit, provide coverage to its enrollees for health care services and 
19.5 	supplies received from providers who are not employed by, under contract with, or 
19.6 	otherwise affiliated with the health maintenance organization. Supplemental benefits may 
19.7 	be provided if the following conditions are met:
19.8 	(1) a health maintenance organization desiring to offer supplemental benefits must at 
19.9 	all times comply with the requirements of sections 62D.041 and 62D.042;
19.10 	(2) a health maintenance organization offering supplemental benefits must maintain 
19.11 	an additional surplus in the first year supplemental benefits are offered equal to the 
19.12 	lesser of $500,000 or 33 percent of the supplemental benefit expenses. At the end of 
19.13 	the second year supplemental benefits are offered, the health maintenance organization 
19.14 	must maintain an additional surplus equal to the lesser of $1,000,000 or 33 percent of the 
19.15 	supplemental benefit expenses. At the end of the third year benefits are offered and every 
19.16 	year after that, the health maintenance organization must maintain an additional surplus 
19.17 	equal to the greater of $1,000,000 or 33 percent of the supplemental benefit expenses. 
19.18 	When in the judgment of the commissioner the health maintenance organization's surplus 
19.19 	is inadequate, the commissioner may require the health maintenance organization to 
19.20 	maintain additional surplus;
19.21 	(3) claims relating to supplemental benefits must be processed in accordance with 
19.22 	the requirements of section 72A.201; and
19.23 	(4) in marketing supplemental benefits, the health maintenance organization shall 
19.24 	fully disclose and describe to enrollees and potential enrollees the nature and extent of the 
19.25 	supplemental coverage, and any claims filing and other administrative responsibilities in 
19.26 	regard to supplemental benefits.
19.27 	(b) The commissioner may, pursuant to chapter 14, adopt, enforce, and administer 
19.28 	rules relating to this subdivision, including: rules insuring that these benefits are 
19.29 	supplementary and not substitutes for comprehensive health maintenance services by 
19.30 	addressing percentage of out-of-plan coverage; rules relating to the establishment of 
19.31 	necessary financial reserves; rules relating to marketing practices; and other rules necessary 
19.32 	for the effective and efficient administration of this subdivision. The commissioner, in 
19.33 	adopting rules, shall give consideration to existing laws and rules administered and 
19.34 	enforced by the Department of Commerce relating to health insurance plans.

19.35 	EFFECTIVE DATE. This section is effective August 1, 2012.

20.1 	Sec. 3. Minnesota Statutes 2010, section 62D.12, subdivision 1, is amended to read:
20.2 		Subdivision 1.False representations. No health maintenance organization or 
20.3 	representative thereof may cause or knowingly permit the use of advertising or solicitation 
20.4 	which is untrue or misleading, or any form of evidence of coverage which is deceptive. 
20.5 	Each health maintenance organization shall be subject to sections 72A.17 to 72A.32, 
20.6 	relating to the regulation of trade practices, except (a) to the extent that the nature of a 
20.7 	health maintenance organization renders such sections clearly inappropriate and (b) that 
20.8 	enforcement shall be by the commissioner of health and not by the commissioner of 
20.9 	commerce. Every health maintenance organization shall be subject to sections 8.31 and 
20.10 	325F.69.

20.11 	EFFECTIVE DATE. This section is effective August 1, 2012.

20.12 	Sec. 4. Minnesota Statutes 2010, section 62Q.80, is amended to read:
20.13 	62Q.80 COMMUNITY-BASED HEALTH CARE COVERAGE PROGRAM.
20.14 		Subdivision 1.Scope. (a) Any community-based health care initiative may develop 
20.15 	and operate community-based health care coverage programs that offer to eligible 
20.16 	individuals and their dependents the option of purchasing through their employer health 
20.17 	care coverage on a fixed prepaid basis without meeting the requirements of chapter 60A, 
20.18 	62A, 62C, 62D, 62M, 62N, 62Q, 62T, or 62U, or any other law or rule that applies to 
20.19 	entities licensed under these chapters.
20.20 	(b) Each initiative shall establish health outcomes to be achieved through the 
20.21 	programs and performance measurements in order to determine whether these outcomes 
20.22 	have been met. The outcomes must include, but are not limited to:
20.23 	(1) a reduction in uncompensated care provided by providers participating in the 
20.24 	community-based health network;
20.25 	(2) an increase in the delivery of preventive health care services; and
20.26 	(3) health improvement for enrollees with chronic health conditions through the 
20.27 	management of these conditions.
20.28 	In establishing performance measurements, the initiative shall use measures that are 
20.29 	consistent with measures published by nonprofit Minnesota or national organizations that 
20.30 	produce and disseminate health care quality measures.
20.31 	(c) Any program established under this section shall not constitute a financial 
20.32 	liability for the state, in that any financial risk involved in the operation or termination 
20.33 	of the program shall be borne by the community-based initiative and the participating 
20.34 	health care providers.
21.1 		Subd. 1a.Demonstration project. The commissioner of health and the 
21.2 	commissioner of human services shall award demonstration project grants to 
21.3 	community-based health care initiatives to develop and operate community-based health 
21.4 	care coverage programs in Minnesota. The demonstration projects shall extend for five 
21.5 	years and must comply with the requirements of this section.
21.6 		Subd. 2.Definitions.  For purposes of this section, the following definitions apply:
21.7 	(a) "Community-based" means located in or primarily relating to the community, 
21.8 	as determined by the board of a community-based health initiative that is served by the 
21.9 	community-based health care coverage program.
21.10 	(b) "Community-based health care coverage program" or "program" means a 
21.11 	program administered by a community-based health initiative that provides health care 
21.12 	services through provider members of a community-based health network or combination 
21.13 	of networks to eligible individuals and their dependents who are enrolled in the program.
21.14 	(c) "Community-based health initiative" or "initiative" means a nonprofit corporation 
21.15 	that is governed by a board that has at least 80 percent of its members residing in the 
21.16 	community and includes representatives of the participating network providers and 
21.17 	employers, or a county-based purchasing organization as defined in section 256B.692.
21.18 	(d) "Community-based health network" means a contract-based network of health 
21.19 	care providers organized by the community-based health initiative to provide or support 
21.20 	the delivery of health care services to enrollees of the community-based health care 
21.21 	coverage program on a risk-sharing or nonrisk-sharing basis.
21.22 	(e) "Dependent" means an eligible employee's spouse or unmarried child who is 
21.23 	under the age of 19 years.
21.24 		Subd. 3.Approval.  (a) Prior to the operation of a community-based health 
21.25 	care coverage program, a community-based health initiative, defined in subdivision 
21.26 	2, paragraph (c), and receiving funds from the Department of Health, shall submit to 
21.27 	the commissioner of health for approval the community-based health care coverage 
21.28 	program developed by the initiative. Each community-based health initiative as defined 
21.29 	in subdivision 2, paragraph (c), and receiving State Health Access Program (SHAP) 
21.30 	grant funding shall submit to the commissioner of human services for approval prior 
21.31 	to its operation the community-based health care coverage programs developed by the 
21.32 	initiatives. The commissioners commissioner shall ensure that each program meets 
21.33 	the federal grant requirements and any requirements described in this section and is 
21.34 	actuarially sound based on a review of appropriate records and methods utilized by the 
21.35 	community-based health initiative in establishing premium rates for the community-based 
21.36 	health care coverage programs.
22.1 	(b) Prior to approval, the commissioner shall also ensure that:
22.2 	(1) the benefits offered comply with subdivision 8 and that there are adequate 
22.3 	numbers of health care providers participating in the community-based health network to 
22.4 	deliver the benefits offered under the program;
22.5 	(2) the activities of the program are limited to activities that are exempt under this 
22.6 	section or otherwise from regulation by the commissioner of commerce;
22.7 	(3) the complaint resolution process meets the requirements of subdivision 10; and
22.8 	(4) the data privacy policies and procedures comply with state and federal law.
22.9 		Subd. 4.Establishment.  The initiative shall establish and operate upon approval 
22.10 	by the commissioners commissioner of health and human services community-based 
22.11 	health care coverage programs. The operational structure established by the initiative 
22.12 	shall include, but is not limited to:
22.13 	(1) establishing a process for enrolling eligible individuals and their dependents;
22.14 	(2) collecting and coordinating premiums from enrollees and employers of enrollees;
22.15 	(3) providing payment to participating providers;
22.16 	(4) establishing a benefit set according to subdivision 8 and establishing premium 
22.17 	rates and cost-sharing requirements;
22.18 	(5) creating incentives to encourage primary care and wellness services; and
22.19 	(6) initiating disease management services, as appropriate.
22.20 		Subd. 5.Qualifying employees.  To be eligible for the community-based health 
22.21 	care coverage program, an individual must:
22.22 	(1) reside in or work within the designated community-based geographic area 
22.23 	served by the program;
22.24 	(2) be employed by a qualifying employer, be an employee's dependent, or be 
22.25 	self-employed on a full-time basis;
22.26 	(3) not be enrolled in or have currently available health coverage, except for 
22.27 	catastrophic health care coverage; and
22.28 	(4) not be eligible for or enrolled in medical assistance or general assistance medical 
22.29 	care, and not be enrolled in MinnesotaCare or Medicare.
22.30 		Subd. 6.Qualifying employers.  (a) To qualify for participation in the 
22.31 	community-based health care coverage program, an employer must:
22.32 	(1) employ at least one but no more than 50 employees at the time of initial 
22.33 	enrollment in the program;
22.34 	(2) pay its employees a median wage that equals 350 percent of the federal poverty 
22.35 	guidelines or less for an individual; and
23.1 	(3) not have offered employer-subsidized health coverage to its employees for 
23.2 	at least 12 months prior to the initial enrollment in the program. For purposes of this 
23.3 	section, "employer-subsidized health coverage" means health care coverage for which the 
23.4 	employer pays at least 50 percent of the cost of coverage for the employee.
23.5 	(b) To participate in the program, a qualifying employer agrees to:
23.6 	(1) offer health care coverage through the program to all eligible employees and 
23.7 	their dependents regardless of health status;
23.8 	(2) participate in the program for an initial term of at least one year;
23.9 	(3) pay a percentage of the premium established by the initiative for the employee; 
23.10 	and
23.11 	(4) provide the initiative with any employee information deemed necessary by the 
23.12 	initiative to determine eligibility and premium payments.
23.13 		Subd. 7.Participating providers. Any health care provider participating in the 
23.14 	community-based health network must accept as payment in full the payment rate 
23.15 	established by the initiatives and may not charge to or collect from an enrollee any amount 
23.16 	in access of this amount for any service covered under the program.
23.17 		Subd. 8.Coverage.  (a) The initiatives shall establish the health care benefits offered 
23.18 	through the community-based health care coverage programs. The benefits established 
23.19 	shall include, at a minimum:
23.20 	(1) child health supervision services up to age 18, as defined under section 62A.047; 
23.21 	and
23.22 	(2) preventive services, including:
23.23 	(i) health education and wellness services;
23.24 	(ii) health supervision, evaluation, and follow-up;
23.25 	(iii) immunizations; and
23.26 	(iv) early disease detection.
23.27 	(b) Coverage of health care services offered by the program may be limited to 
23.28 	participating health care providers or health networks. All services covered under the 
23.29 	programs must be services that are offered within the scope of practice of the participating 
23.30 	health care providers.
23.31 	(c) The initiatives may establish cost-sharing requirements. Any co-payment or 
23.32 	deductible provisions established may not discriminate on the basis of age, sex, race, 
23.33 	disability, economic status, or length of enrollment in the programs.
23.34 	(d) If any of the initiatives amends or alters the benefits offered through the program 
23.35 	from the initial offering, that initiative must notify the commissioners commissioner of 
23.36 	health and human services and all enrollees of the benefit change.
24.1 		Subd. 9.Enrollee information. (a) The initiatives must provide an individual or 
24.2 	family who enrolls in the program a clear and concise written statement that includes 
24.3 	the following information:
24.4 	(1) health care services that are covered under the program;
24.5 	(2) any exclusions or limitations on the health care services covered, including any 
24.6 	cost-sharing arrangements or prior authorization requirements;
24.7 	(3) a list of where the health care services can be obtained and that all health 
24.8 	care services must be provided by or through a participating health care provider or 
24.9 	community-based health network;
24.10 	(4) a description of the program's complaint resolution process, including how to 
24.11 	submit a complaint; how to file a complaint with the commissioner of health; and how to 
24.12 	obtain an external review of any adverse decisions as provided under subdivision 10;
24.13 	(5) the conditions under which the program or coverage under the program may 
24.14 	be canceled or terminated; and
24.15 	(6) a precise statement specifying that this program is not an insurance product and, 
24.16 	as such, is exempt from state regulation of insurance products.
24.17 	(b) The commissioners commissioner of health and human services must approve a 
24.18 	copy of the written statement prior to the operation of the program.
24.19 		Subd. 10.Complaint resolution process. (a) The initiatives must establish 
24.20 	a complaint resolution process. The process must make reasonable efforts to resolve 
24.21 	complaints and to inform complainants in writing of the initiative's decision within 60 
24.22 	days of receiving the complaint. Any decision that is adverse to the enrollee shall include 
24.23 	a description of the right to an external review as provided in paragraph (c) and how to 
24.24 	exercise this right.
24.25 	(b) The initiatives must report any complaint that is not resolved within 60 days to 
24.26 	the commissioner of health.
24.27 	(c) The initiatives must include in the complaint resolution process the ability of an 
24.28 	enrollee to pursue the external review process provided under section 62Q.73 with any 
24.29 	decision rendered under this external review process binding on the initiatives.
24.30 		Subd. 11.Data privacy. The initiatives shall establish data privacy policies and 
24.31 	procedures for the program that comply with state and federal data privacy laws.
24.32 		Subd. 12.Limitations on enrollment. (a) The initiatives may limit enrollment in 
24.33 	the program. If enrollment is limited, a waiting list must be established.
24.34 	(b) The initiatives shall not restrict or deny enrollment in the program except for 
24.35 	nonpayment of premiums, fraud or misrepresentation, or as otherwise permitted under 
24.36 	this section.
25.1 	(c) The initiatives may require a certain percentage of participation from eligible 
25.2 	employees of a qualifying employer before coverage can be offered through the program.
25.3 		Subd. 13.Report.  Each initiative shall submit quarterly an annual status reports
25.4 	report to the commissioner of health on January 15, April 15, July 15, and October 15 of 
25.5 	each year, with the first report due January 15, 2008. Each initiative receiving funding 
25.6 	from the Department of Human Services shall submit status reports to the commissioner 
25.7 	of human services as defined in the terms of the contract with the Department of Human 
25.8 	Services. Each status report shall include:
25.9 	(1) the financial status of the program, including the premium rates, cost per member 
25.10 	per month, claims paid out, premiums received, and administrative expenses;
25.11 	(2) a description of the health care benefits offered and the services utilized;
25.12 	(3) the number of employers participating, the number of employees and dependents 
25.13 	covered under the program, and the number of health care providers participating;
25.14 	(4) a description of the health outcomes to be achieved by the program and a status 
25.15 	report on the performance measurements to be used and collected; and
25.16 	(5) any other information requested by the commissioners commissioner of health, 
25.17 	human services, or commerce or the legislature.
25.18 		Subd. 14.Sunset. This section expires August 31, 2014.

25.19 	Sec. 5. Minnesota Statutes 2010, section 62U.04, subdivision 1, is amended to read:
25.20 		Subdivision 1.Development of tools to improve costs and quality outcomes.
 25.21 	The commissioner of health shall develop a plan to create transparent prices, encourage 
25.22 	greater provider innovation and collaboration across points on the health continuum 
25.23 	in cost-effective, high-quality care delivery, reduce the administrative burden on 
25.24 	providers and health plans associated with submitting and processing claims, and provide 
25.25 	comparative information to consumers on variation in health care cost and quality across 
25.26 	providers. The development must be complete by January 1, 2010.

25.27 	EFFECTIVE DATE. This section is effective July 1, 2012.

25.28 	Sec. 6. Minnesota Statutes 2010, section 62U.04, subdivision 2, is amended to read:
25.29 		Subd. 2.Calculation of health care costs and quality. The commissioner of health 
25.30 	shall develop a uniform method of calculating providers' relative cost of care, defined as a 
25.31 	measure of health care spending including resource use and unit prices, and relative quality 
25.32 	of care. In developing this method, the commissioner must address the following issues:
25.33 	(1) provider attribution of costs and quality;
25.34 	(2) appropriate adjustment for outlier or catastrophic cases;
26.1 	(3) appropriate risk adjustment to reflect differences in the demographics and health 
26.2 	status across provider patient populations, using generally accepted and transparent risk 
26.3 	adjustment methodologies and case mix adjustment;
26.4 	(4) specific types of providers that should be included in the calculation;
26.5 	(5) specific types of services that should be included in the calculation;
26.6 	(6) appropriate adjustment for variation in payment rates;
26.7 	(7) the appropriate provider level for analysis;
26.8 	(8) payer mix adjustments, including variation across providers in the percentage of 
26.9 	revenue received from government programs; and
26.10 	(9) other factors that the commissioner determines and the advisory committee, 
26.11 	established under subdivision 3, determine are needed to ensure validity and comparability 
26.12 	of the analysis.

26.13 	EFFECTIVE DATE. This section is effective July 1, 2012, and applies to all 
26.14 	information provided or released to the public or to health care providers, pursuant to 
26.15 	Minnesota Statutes, section 62U.04, on or after that date.

26.16 	Sec. 7. Minnesota Statutes 2011 Supplement, section 62U.04, subdivision 3, is 
26.17 	amended to read:
26.18 		Subd. 3.Provider peer grouping; system development; advisory committee.
 26.19 	(a) The commissioner shall develop a peer grouping system for providers based on a 
26.20 	combined measure that incorporates both provider risk-adjusted cost of care and quality of 
26.21 	care, and for specific conditions as determined by the commissioner. In developing this 
26.22 	system, the commissioner shall consult and coordinate with health care providers, health 
26.23 	plan companies, state agencies, and organizations that work to improve health care quality 
26.24 	in Minnesota. For purposes of the final establishment of the peer grouping system, the 
26.25 	commissioner shall not contract with any private entity, organization, or consortium of 
26.26 	entities that has or will have a direct financial interest in the outcome of the system.
26.27 	(b) The commissioner shall establish an advisory committee comprised of 
26.28 	representatives of health care providers, health plan companies, consumers, state agencies, 
26.29 	employers, academic researchers, and organizations that work to improve health care 
26.30 	quality in Minnesota. The advisory committee shall meet no fewer than three times 
26.31 	per year. The commissioner shall consult with the advisory committee in developing 
26.32 	and administering the peer grouping system, including but not limited to the following 
26.33 	activities:
26.34 	(1) establishing peer groups;
26.35 	(2) selecting quality measures;
27.1 	(3) recommending thresholds for completeness of data and statistical significance 
27.2 	for the purposes of public release of provider peer grouping results;
27.3 	(4) considering whether adjustments are necessary for facilities that provide medical 
27.4 	education, level 1 trauma services, neonatal intensive care, or inpatient psychiatric care;
27.5 	(5) recommending inclusion or exclusion of other costs; and
27.6 	(6) adopting patient attribution and quality and cost-scoring methodologies.
27.7 		Subd. 3a.Provider peer grouping; dissemination of data to providers. (b) By 
27.8 	no later than October 15, 2010, (a) The commissioner shall disseminate information 
27.9 	to providers on their total cost of care, total resource use, total quality of care, and the 
27.10 	total care results of the grouping developed under this subdivision 3 in comparison to an 
27.11 	appropriate peer group. Data used for this analysis must be the most recent data available. 
27.12 	Any analyses or reports that identify providers may only be published after the provider 
27.13 	has been provided the opportunity by the commissioner to review the underlying data in 
27.14 	order to verify, consistent with the findings specified in subdivision 3c, paragraph (d), the 
27.15 	accuracy and representativeness of any analyses or reports  and submit comments to the 
27.16 	commissioner or initiate an appeal under subdivision 3b. Providers may Upon request, 
27.17 	providers shall be given any data for which they are the subject of the data. The provider 
27.18 	shall have 30 60 days to review the data for accuracy and initiate an appeal as specified 
27.19 	in paragraph (d) subdivision 3b.
27.20 	(c) By no later than January 1, 2011, (b) The commissioner shall disseminate 
27.21 	information to providers on their condition-specific cost of care, condition-specific 
27.22 	resource use, condition-specific quality of care, and the condition-specific results of the 
27.23 	grouping developed under this subdivision 3 in comparison to an appropriate peer group.
27.24 	Data used for this analysis must be the most recent data available. Any analyses or 
27.25 	reports that identify providers may only be published after the provider has been provided 
27.26 	the opportunity by the commissioner to review the underlying data in order to verify, 
27.27 	consistent with the findings specified in subdivision 3c, paragraph (d), the accuracy and 
27.28 	representativeness of any analyses or reports  and submit comments to the commissioner 
27.29 	or initiate an appeal under subdivision 3b. Providers may Upon request, providers shall
27.30 	be given any data for which they are the subject of the data. The provider shall have 30
27.31 	60 days to review the data for accuracy and initiate an appeal as specified in paragraph 
27.32 	(d) subdivision 3b.
27.33 		Subd. 3b.Provider peer grouping; appeals process. (d) The commissioner shall 
27.34 	establish an appeals a process to resolve disputes from providers regarding the accuracy 
27.35 	of the data used to develop analyses or reports or errors in the application of standards 
27.36 	or methodology established by the commissioner in consultation with the advisory 
28.1 	committee. When a provider appeals the accuracy of the data used to calculate the peer 
28.2 	grouping system results submits an appeal, the provider shall:
28.3 	(1) clearly indicate the reason they believe the data used to calculate the peer group 
28.4 	system results are not accurate or reasons for the appeal;
28.5 	(2) provide any evidence and, calculations, or documentation to support the reason 
28.6 	that data was not accurate for the appeal; and
28.7 	(3) cooperate with the commissioner, including allowing the commissioner access to 
28.8 	data necessary and relevant to resolving the dispute.
28.9 	The commissioner shall cooperate with the provider during the data review period 
28.10 	specified in subdivisions 3a and 3c by giving the provider information necessary for the 
28.11 	preparation of an appeal.
28.12 	If a provider does not meet the requirements of this paragraph subdivision, a provider's 
28.13 	appeal shall be considered withdrawn. The commissioner shall not publish peer grouping
28.14 	results for a specific provider under paragraph (e) or (f) while that provider has an 
28.15 	unresolved appeal until the appeal has been resolved.
28.16 		Subd. 3c.Provider peer grouping; publication of information for the public.
 28.17 	(e) Beginning January 1, 2011, the commissioner shall, no less than annually, publish 
28.18 	information on providers' total cost, total resource use, total quality, and the results of 
28.19 	the total care portion of the peer grouping process. The results that are published must 
28.20 	be on a risk-adjusted basis. (a) The commissioner may publicly release summary data 
28.21 	related to the peer grouping system as long as the data do not contain information or 
28.22 	descriptions from which the identity of individual hospitals, clinics, or other providers 
28.23 	may be discerned.
28.24 	(f) Beginning March 30, 2011, the commissioner shall no less than annually publish 
28.25 	information on providers' condition-specific cost, condition-specific resource use, and 
28.26 	condition-specific quality, and the results of the condition-specific portion of the peer 
28.27 	grouping process. The results that are published must be on a risk-adjusted basis. (b) The 
28.28 	commissioner may publicly release analyses or results related to the peer grouping system 
28.29 	that identify hospitals, clinics, or other providers only if the following criteria are met:
28.30 	(1) the results, data, and summaries, including any graphical depictions of provider 
28.31 	performance, have been distributed to providers at least 120 days prior to publication; 
28.32 	(2) the commissioner has provided an opportunity for providers to verify and 
28.33 	review data for which the provider is the subject consistent with the findings specified 
28.34 	in subdivision 3c, paragraph (d); 
29.1 	(3) the results meet thresholds of validity, reliability, statistical significance, 
29.2 	representativeness, and other standards that reflect the recommendations of the advisory 
29.3 	committee, established under subdivision 3; and
29.4 	(4) any public report or other usage of the analyses, report, or data used by the 
29.5 	state clearly notifies consumers about how to use and interpret the results, including 
29.6 	any limitations of the data and analysis.
29.7 	(g) (c) After publishing the first public report, the commissioner shall, no less 
29.8 	frequently than annually, publish information on providers' total cost, total resource use, 
29.9 	total quality, and the results of the total care portion of the peer grouping process, as well 
29.10 	as information on providers' condition-specific cost, condition-specific resource use, 
29.11 	and condition-specific quality, and the results of the condition-specific portion of the 
29.12 	peer grouping process. The results that are published must be on a risk-adjusted basis, 
29.13 	including case mix adjustments.
29.14 	(d) The commissioner shall convene a work group comprised of representatives 
29.15 	of physician clinics, hospitals, their respective statewide associations, and other 
29.16 	relevant stakeholder organizations to make recommendations on data to be made 
29.17 	available to hospitals and physician clinics to allow for verification of the accuracy and 
29.18 	representativeness of the provider peer grouping results.
29.19 		Subd. 3d.Provider peer grouping; standards for dissemination and publication.
 29.20 	(a) Prior to disseminating data to providers under paragraph (b) or (c) subdivision 3a or 
29.21 	publishing information under paragraph (e) or (f) subdivision 3c, the commissioner, in 
29.22 	consultation with the advisory committee, shall ensure the scientific and statistical validity 
29.23 	and reliability of the results according to the standards described in paragraph (h) (b). 
29.24 	If additional time is needed to establish the scientific validity, statistical significance,
29.25 	and reliability of the results, the commissioner may delay the dissemination of data to 
29.26 	providers under paragraph (b) or (c) subdivision 3a, or the publication of information under 
29.27 	paragraph (e) or (f) subdivision 3c. If the delay is more than 60 days, the commissioner 
29.28 	shall report in writing to the chairs and ranking minority members of the legislative 
29.29 	committees with jurisdiction over health care policy and finance the following information:
29.30 	(1) the reason for the delay;
29.31 	(2) the actions being taken to resolve the delay and establish the scientific validity 
29.32 	and reliability of the results; and
29.33 	(3) the new dates by which the results shall be disseminated.
29.34 	If there is a delay under this paragraph, The commissioner must disseminate the 
29.35 	information to providers under paragraph (b) or (c) subdivision 3a at least 90 120 days 
29.36 	before publishing results under paragraph (e) or (f) subdivision 3c.
30.1 	(h) (b) The commissioner's assurance of valid, timely, and reliable clinic and hospital 
30.2 	peer grouping performance results shall include, at a minimum, the following:
30.3 	(1) use of the best available evidence, research, and methodologies; and
30.4 	(2) establishment of an explicit minimum reliability threshold thresholds for both 
30.5 	quality and costs developed in collaboration with the subjects of the data and the users of 
30.6 	the data, at a level not below nationally accepted standards where such standards exist.
30.7 	In achieving these thresholds, the commissioner shall not aggregate clinics that are not 
30.8 	part of the same system or practice group. The commissioner shall consult with and 
30.9 	solicit feedback from the advisory committee and representatives of physician clinics 
30.10 	and hospitals during the peer grouping data analysis process to obtain input on the 
30.11 	methodological options prior to final analysis and on the design, development, and testing 
30.12 	of provider reports.

30.13 	EFFECTIVE DATE. This section is effective July 1, 2012, shall be implemented 
30.14 	within available resources, and applies to all information provided or released to the 
30.15 	public or to health care providers, pursuant to Minnesota Statutes, section 64U.04, on or 
30.16 	after that date.

30.17 	Sec. 8. Minnesota Statutes 2010, section 62U.04, subdivision 4, is amended to read:
30.18 		Subd. 4.Encounter data. (a) Beginning July 1, 2009, and every six months 
30.19 	thereafter, all health plan companies and third-party administrators shall submit encounter 
30.20 	data to a private entity designated by the commissioner of health. The data shall be 
30.21 	submitted in a form and manner specified by the commissioner subject to the following 
30.22 	requirements:
30.23 	(1) the data must be de-identified data as described under the Code of Federal 
30.24 	Regulations, title 45, section 164.514;
30.25 	(2) the data for each encounter must include an identifier for the patient's health care 
30.26 	home if the patient has selected a health care home; and
30.27 	(3) except for the identifier described in clause (2), the data must not include 
30.28 	information that is not included in a health care claim or equivalent encounter information 
30.29 	transaction that is required under section 62J.536.
30.30 	(b) The commissioner or the commissioner's designee shall only use the data 
30.31 	submitted under paragraph (a) for the purpose of carrying out its responsibilities in this 
30.32 	section, and must maintain the data that it receives according to the provisions of this 
30.33 	section to carry out its responsibilities in this section, including supplying the data to 
30.34 	providers so they can verify their results of the peer grouping process consistent with the 
31.1 	findings specified under subdivision 3c, paragraph (d), and, if necessary, submit comments 
31.2 	to the commissioner or initiate an appeal.
31.3 	(c) Data on providers collected under this subdivision are private data on individuals 
31.4 	or nonpublic data, as defined in section 13.02. Notwithstanding the definition of summary 
31.5 	data in section 13.02, subdivision 19, summary data prepared under this subdivision 
31.6 	may be derived from nonpublic data. The commissioner or the commissioner's designee 
31.7 	shall establish procedures and safeguards to protect the integrity and confidentiality of 
31.8 	any data that it maintains.
31.9 	(d) The commissioner or the commissioner's designee shall not publish analyses or 
31.10 	reports that identify, or could potentially identify, individual patients.

31.11 	EFFECTIVE DATE. This section is effective July 1, 2012, and applies to all 
31.12 	information provided or released to the public or to health care providers pursuant to 
31.13 	Minnesota Statutes, section 62U.04, on or after that date.

31.14 	Sec. 9. Minnesota Statutes 2010, section 62U.04, subdivision 5, is amended to read:
31.15 		Subd. 5.Pricing data. (a) Beginning July 1, 2009, and annually on January 1 
31.16 	thereafter, all health plan companies and third-party administrators shall submit data 
31.17 	on their contracted prices with health care providers to a private entity designated by 
31.18 	the commissioner of health for the purposes of performing the analyses required under 
31.19 	this subdivision. The data shall be submitted in the form and manner specified by the 
31.20 	commissioner of health.
31.21 	(b) The commissioner or the commissioner's designee shall only use the data 
31.22 	submitted under this subdivision for the purpose of carrying out its responsibilities under 
31.23 	this section to carry out its responsibilities under this section, including supplying the 
31.24 	data to providers so they can verify their results of the peer grouping process consistent 
31.25 	with the findings specified under subdivision 3c, paragraph (d), and, if necessary, submit 
31.26 	comments to the commissioner or initiate an appeal.
31.27 	(c) Data collected under this subdivision are nonpublic data as defined in section 
31.28 	13.02. Notwithstanding the definition of summary data in section 13.02, subdivision 19, 
31.29 	summary data prepared under this section may be derived from nonpublic data. The 
31.30 	commissioner shall establish procedures and safeguards to protect the integrity and 
31.31 	confidentiality of any data that it maintains.

31.32 	EFFECTIVE DATE. This section is effective July 1, 2012, and applies to all 
31.33 	information provided or released to the public or to health care providers pursuant to 
31.34 	Minnesota Statutes, section 62U.04, on or after that date.

32.1 	Sec. 10. Minnesota Statutes 2011 Supplement, section 62U.04, subdivision 9, is 
32.2 	amended to read:
32.3 		Subd. 9.Uses of information. (a) For product renewals or for new products that 
32.4 	are offered, after 12 months have elapsed from publication by the commissioner of the 
32.5 	information in subdivision 3, paragraph (e):
32.6 	(1) the commissioner of management and budget shall may use the information and 
32.7 	methods developed under subdivision 3 subdivisions 3 to 3d to strengthen incentives for 
32.8 	members of the state employee group insurance program to use high-quality, low-cost 
32.9 	providers;
32.10 	(2) all political subdivisions, as defined in section 13.02, subdivision 11, that offer 
32.11 	health benefits to their employees must may offer plans that differentiate providers on their 
32.12 	cost and quality performance and create incentives for members to use better-performing 
32.13 	providers;
32.14 	(3) all health plan companies shall may use the information and methods developed 
32.15 	under subdivision 3 subdivisions 3 to 3d to develop products that encourage consumers to 
32.16 	use high-quality, low-cost providers; and
32.17 	(4) health plan companies that issue health plans in the individual market or the 
32.18 	small employer market must may offer at least one health plan that uses the information 
32.19 	developed under subdivision 3 subdivisions 3 to 3d to establish financial incentives for 
32.20 	consumers to choose higher-quality, lower-cost providers through enrollee cost-sharing 
32.21 	or selective provider networks.
32.22 	(b) By January 1, 2011, the commissioner of health shall report to the governor 
32.23 	and the legislature on recommendations to encourage health plan companies to promote 
32.24 	widespread adoption of products that encourage the use of high-quality, low-cost providers. 
32.25 	The commissioner's recommendations may include tax incentives, public reporting of 
32.26 	health plan performance, regulatory incentives or changes, and other strategies.

32.27 	EFFECTIVE DATE. This section is effective July 1, 2012.

32.28 	Sec. 11. Minnesota Statutes 2010, section 144.1222, is amended by adding a 
32.29 	subdivision to read:
32.30 		Subd. 6.Exemption. The natural swimming pond project known as Webber Lake 
32.31 	in the city of Minneapolis is exempt from this chapter and Minnesota Rules, chapter 
32.32 	4717, for the purpose of allowing a swimming pool that uses an alternative, nonchemical 
32.33 	filtration system to eliminate pathogens through natural processes. If the commissioner 
32.34 	determines that this project is unable to provide a safe swimming environment, the 
32.35 	commissioner shall rescind this exemption.

33.1 	EFFECTIVE DATE. This section is effective the day the governing body of the 
33.2 	city of Minneapolis and its chief clerical officer timely complete their compliance with 
33.3 	Minnesota Statutes, section 645.021, subdivisions 2 and 3.

33.4 	Sec. 12. [144.1225] ADVANCED DIAGNOSTIC IMAGING SERVICES.
33.5 		Subdivision 1.Definition. For purposes of this section, "advanced diagnostic 
33.6 	imaging services" means services entailing the use of diagnostic magnetic resonance 
33.7 	imaging (MRI) equipment, except that it does not include MRI equipment owned or 
33.8 	operated by a hospital licensed under sections 144.50 to 144.56 or any facility affiliated 
33.9 	with or owned by such hospital.
33.10 		Subd. 2.Accreditation required. (a) Except as otherwise provided in paragraph 
33.11 	(b), advanced diagnostic imaging services eligible for reimbursement from any source 
33.12 	including, but not limited to, the individual receiving such services and any individual 
33.13 	or group insurance contract, plan, or policy delivered in this state including, but not 
33.14 	limited to, private health insurance plans, workers' compensation insurance, motor vehicle 
33.15 	insurance, the State Employee Group Insurance Program (SEGIP), and other state health 
33.16 	care programs shall be reimbursed only if the facility at which the service has been 
33.17 	conducted and processed is accredited by one of the following entities:
33.18 	(1) American College of Radiology (ACR);
33.19 	(2) Intersocietal Accreditation Commission (IAC); or
33.20 	(3) the joint commission.
33.21 	(b) Any facility that performs advanced diagnostic imaging services and is eligible 
33.22 	to receive reimbursement for such services from any source in paragraph (a) must obtain 
33.23 	accreditation by August 1, 2013. Thereafter, all facilities that provide advanced diagnostic 
33.24 	imaging services in the state must obtain accreditation prior to commencing operations 
33.25 	and must, at all times, maintain accreditation with an accrediting organization as provided 
33.26 	in paragraph (a).
33.27 		Subd. 3.Reporting. (a) Advanced diagnostic imaging facilities and providers 
33.28 	of advanced diagnostic imaging services must annually report to the commissioner 
33.29 	demonstration of accreditation as required under this section.
33.30 	(b) The commissioner may promulgate any rules necessary to administer the 
33.31 	reporting required under paragraph (a).

33.32 	Sec. 13. Minnesota Statutes 2010, section 144.292, subdivision 6, is amended to read:
33.33 		Subd. 6.Cost. (a) When a patient requests a copy of the patient's record for 
33.34 	purposes of reviewing current medical care, the provider must not charge a fee.
34.1 	(b) When a provider or its representative makes copies of patient records upon a 
34.2 	patient's request under this section, the provider or its representative may charge the 
34.3 	patient or the patient's representative no more than 75 cents per page, plus $10 for time 
34.4 	spent retrieving and copying the records, unless other law or a rule or contract provide for 
34.5 	a lower maximum charge. This limitation does not apply to x-rays. The provider may 
34.6 	charge a patient no more than the actual cost of reproducing x-rays, plus no more than 
34.7 	$10 for the time spent retrieving and copying the x-rays.
34.8 	(c) The respective maximum charges of 75 cents per page and $10 for time provided 
34.9 	in this subdivision are in effect for calendar year 1992 and may be adjusted annually each 
34.10 	calendar year as provided in this subdivision. The permissible maximum charges shall 
34.11 	change each year by an amount that reflects the change, as compared to the previous year, 
34.12 	in the Consumer Price Index for all Urban Consumers, Minneapolis-St. Paul (CPI-U), 
34.13 	published by the Department of Labor.
34.14 	(d) A provider or its representative may charge the $10 retrieval fee, but must not 
34.15 	charge a per page fee to provide copies of records requested by a patient or the patient's 
34.16 	authorized representative if the request for copies of records is for purposes of appealing 
34.17 	a denial of Social Security disability income or Social Security disability benefits under 
34.18 	title II or title XVI of the Social Security Act; except that no fee shall be charged to a 
34.19 	person who is receiving public assistance, who is represented by an attorney on behalf of 
34.20 	a civil legal services program or a volunteer attorney program based on indigency. For 
34.21 	the purpose of further appeals, a patient may receive no more than two medical record 
34.22 	updates without charge, but only for medical record information previously not provided. 
34.23 	For purposes of this paragraph, a patient's authorized representative does not include units 
34.24 	of state government engaged in the adjudication of Social Security disability claims.

34.25 	Sec. 14. Minnesota Statutes 2010, section 144.293, subdivision 2, is amended to read:
34.26 		Subd. 2.Patient consent to release of records. A provider, or a person who 
34.27 	receives health records from a provider, may not release a patient's health records to a 
34.28 	person without:
34.29 	(1) a signed and dated consent from the patient or the patient's legally authorized 
34.30 	representative authorizing the release;
34.31 	(2) specific authorization in law; or
34.32 	(3) in the case of a medical emergency, a representation from a provider that holds a 
34.33 	signed and dated consent from the patient authorizing the release.

35.1 	Sec. 15. Minnesota Statutes 2010, section 145.906, is amended to read:
35.2 	145.906 POSTPARTUM DEPRESSION EDUCATION AND INFORMATION.
35.3 	(a) The commissioner of health shall work with health care facilities, licensed health 
35.4 	and mental health care professionals, the women, infants, and children (WIC) program, 
35.5 	mental health advocates, consumers, and families in the state to develop materials and 
35.6 	information about postpartum depression, including treatment resources, and develop 
35.7 	policies and procedures to comply with this section.
35.8 	(b) Physicians, traditional midwives, and other licensed health care professionals 
35.9 	providing prenatal care to women must have available to women and their families 
35.10 	information about postpartum depression.
35.11 	(c) Hospitals and other health care facilities in the state must provide departing new 
35.12 	mothers and fathers and other family members, as appropriate, with written information 
35.13 	about postpartum depression, including its symptoms, methods of coping with the illness, 
35.14 	and treatment resources.
35.15 	(d) Information about postpartum depression, including its symptoms, potential 
35.16 	impact on families, and treatment resources, must be available at WIC sites.

35.17 	Sec. 16. Minnesota Statutes 2010, section 256B.0754, subdivision 2, is amended to 
35.18 	read:
35.19 		Subd. 2.Payment reform. By no later than 12 months after the commissioner of 
35.20 	health publishes the information in section 62U.04, subdivision 3, paragraph (e) 62U.04, 
35.21 	subdivision 3c, paragraph (b), the commissioner of human services shall may use the 
35.22 	information and methods developed under section 62U.04 to establish a payment system 
35.23 	that:
35.24 	(1) rewards high-quality, low-cost providers;
35.25 	(2) creates enrollee incentives to receive care from high-quality, low-cost providers; 
35.26 	and
35.27 	(3) fosters collaboration among providers to reduce cost shifting from one part of 
35.28 	the health continuum to another.

35.29 	EFFECTIVE DATE. This section is effective July 1, 2012.

35.30 	Sec. 17. EVALUATION OF HEALTH AND HUMAN SERVICES REGULATORY 
35.31 	RESPONSIBILITIES.
 36.1 	Relating to the evaluations and legislative report completed pursuant to Laws 
36.2 	2011, First Special Session chapter 9, article 2, section 26, the following activities must 
36.3 	be completed:
36.4 	(1) the commissioners of health and human services must update, revise, and 
36.5 	link the contents of their Web sites related to supervised living facilities, intermediate 
36.6 	care facilities for the developmentally disabled, nursing facilities, board and lodging 
36.7 	establishments, and human services licensed programs so that consumers and providers 
36.8 	can access consistent clear information about the regulations affecting these facilities; and
36.9 	(2) the commissioner of management and budget, in consultation with the 
36.10 	commissioners of health and human services, must evaluate and recommend options 
36.11 	for administering health and human services regulations. The evaluation and 
36.12 	recommendations must be submitted in a report to the legislative committees with 
36.13 	jurisdiction over health and human services no later than August 1, 2013, and shall at a 
36.14 	minimum: (i) identify and evaluate the regulatory responsibilities of the Departments 
36.15 	of Health and Human Services to determine whether to organize these regulatory 
36.16 	responsibilities to improve how the state administers health and human services regulatory 
36.17 	functions, or whether there are ways to improve these regulatory activities without 
36.18 	reorganizing; and (ii) describe and evaluate the multiple roles of the Department of 
36.19 	Human Services as a direct provider of care services, a regulator, and a payor for state 
36.20 	program services.

36.21 	Sec. 18. STUDY OF FOR-PROFIT HEALTH MAINTENANCE 
36.22 	ORGANIZATIONS.
 36.23 	The commissioner of health shall contract with an entity with expertise in health 
36.24 	economics and health care delivery and quality to study the efficiency, costs, service 
36.25 	quality, and enrollee satisfaction of for-profit health maintenance organizations, relative to 
36.26 	not-for-profit health maintenance organizations operating in Minnesota and other states. 
36.27 	The study findings must address whether the state could: (1) reduce medical assistance 
36.28 	and MinnesotaCare costs and costs of providing coverage to state employees; and (2) 
36.29 	maintain or improve the quality of care provided to state health care program enrollees and 
36.30 	state employees if for-profit health maintenance organizations were allowed to operate in 
36.31 	the state. The commissioner shall require the entity under contract to report study findings 
36.32 	to the commissioner and the legislature by January 15, 2013.

36.33 	Sec. 19. REPORTING PREVALENCE OF SEXUAL VIOLENCE.
 37.1 	The commissioner of health must routinely report to the public and to the legislature 
37.2 	data on the prevalence and incidence of sexual violence in Minnesota. The commissioner 
37.3 	must use existing data provided by the Centers for Disease Control and Prevention, or 
37.4 	other source as identified by commissioner.

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

37.6 	ARTICLE 3
37.7 	CHILDREN AND FAMILY SERVICES

37.8 	Section 1. Minnesota Statutes 2010, section 119B.13, subdivision 3a, is amended to 
37.9 	read:
37.10 		Subd. 3a.Provider rate differential for accreditation. A family child care 
37.11 	provider or child care center shall be paid a 15 16 percent differential above the maximum 
37.12 	rate established in subdivision 1, up to the actual provider rate, if the provider or center 
37.13 	holds a current early childhood development credential or is accredited. For a family 
37.14 	child care provider, early childhood development credential and accreditation includes 
37.15 	an individual who has earned a child development associate degree, a child development 
37.16 	associate credential, a diploma in child development from a Minnesota state technical 
37.17 	college, or a bachelor's or post baccalaureate degree in early childhood education from 
37.18 	an accredited college or university, or who is accredited by the National Association 
37.19 	for Family Child Care or the Competency Based Training and Assessment Program. 
37.20 	For a child care center, accreditation includes accreditation by that meets the following 
37.21 	criteria: the accrediting organization must demonstrate the use of standards that promote 
37.22 	the physical, social, emotional, and cognitive development of children. The accreditation 
37.23 	standards shall include, but are not limited to, positive interactions between adults and 
37.24 	children, age-appropriate learning activities, a system of tracking children's learning, 
37.25 	use of assessment to meet children's needs, specific qualifications for staff, a learning 
37.26 	environment that supports developmentally appropriate experiences for children, health 
37.27 	and safety requirements, and family engagement strategies. The commissioner of human 
37.28 	services, in conjunction with the commissioners of education and health, will develop an 
37.29 	application and approval process based on the criteria in this section and any additional 
37.30 	criteria. The process developed by the commissioner of human services must address 
37.31 	periodic reassessment of approved accreditations. The commissioner of human services 
37.32 	must report the criteria developed, the application, approval, and reassessment processes, 
37.33 	and any additional recommendations by February 15, 2013, to the chairs and ranking 
37.34 	minority members of the legislative committees having jurisdiction over early childhood 
38.1 	issues. The following accreditations shall be recognized for the provider rate differential 
38.2 	until an approval process is implemented:  the National Association for the Education of 
38.3 	Young Children, the Council on Accreditation, the National Early Childhood Program 
38.4 	Accreditation, the National School-Age Care Association, or the National Head Start 
38.5 	Association Program of Excellence. For Montessori programs, accreditation includes 
38.6 	the American Montessori Society, Association of Montessori International-USA, or the 
38.7 	National Center for Montessori Education.

38.8 	Sec. 2. Minnesota Statutes 2011 Supplement, section 119B.13, subdivision 7, is 
38.9 	amended to read:
38.10 		Subd. 7.Absent days. (a) Licensed Child care providers and license-exempt centers 
38.11 	must may not be reimbursed for more than ten 25 full-day absent days per child, excluding 
38.12 	holidays, in a fiscal year, or for more than ten consecutive full day absent days, unless the 
38.13 	child has a documented medical condition that causes more frequent absences. Absences 
38.14 	due to a documented medical condition of a parent or sibling who lives in the same 
38.15 	residence as the child receiving child care assistance do not count against the 25 day absent 
38.16 	day limit in a fiscal year. Documentation of medical conditions must be on the forms and 
38.17 	submitted according to the timelines established by the commissioner. A public health 
38.18 	nurse or school nurse may verify the illness in lieu of a medical practitioner. If a provider 
38.19 	sends a child home early due to a medical reason, including, but not limited to, fever or 
38.20 	contagious illness, the child care center director or lead teacher may verify the illness in 
38.21 	lieu of a medical practitioner. Legal nonlicensed family child care providers must not be 
38.22 	reimbursed for absent days. If a child attends for part of the time authorized to be in care 
38.23 	in a day, but is absent for part of the time authorized to be in care in that same day, the 
38.24 	absent time must be reimbursed but the time must not count toward the ten consecutive or 
38.25 	25 cumulative absent day limit limits. Children in families where at least one parent is 
38.26 	under the age of 21, does not have a high school or general equivalency diploma, and is a 
38.27 	student in a school district or another similar program that provides or arranges for child 
38.28 	care, as well as parenting, social services, career and employment supports, and academic 
38.29 	support to achieve high school graduation, may be exempt from the absent day limits upon 
38.30 	request of the program and approval by the county. If a child attends part of an authorized 
38.31 	day, payment to the provider must be for the full amount of care authorized for that day. 
38.32 	Child care providers must only be reimbursed for absent days if the provider has a written 
38.33 	policy for child absences and charges all other families in care for similar absences.
38.34 	(b) Child care providers must be reimbursed for up to ten federal or state holidays 
38.35 	or designated holidays per year when the provider charges all families for these days 
39.1 	and the holiday or designated holiday falls on a day when the child is authorized to be 
39.2 	in attendance. Parents may substitute other cultural or religious holidays for the ten 
39.3 	recognized state and federal holidays. Holidays do not count toward the ten consecutive 
39.4 	or 25 cumulative absent day limit limits.
39.5 	(c) A family or child care provider must not be assessed an overpayment for an 
39.6 	absent day payment unless (1) there was an error in the amount of care authorized for the 
39.7 	family, (2) all of the allowed full-day absent payments for the child have been paid, or (3) 
39.8 	the family or provider did not timely report a change as required under law.
39.9 	(d) The provider and family shall receive notification of the number of absent days 
39.10 	used upon initial provider authorization for a family and ongoing notification of the 
39.11 	number of absent days used as of the date of the notification.
39.12 	(e) A county may pay for more absent days than the statewide absent day policy 
39.13 	established under this subdivision if current market practice in the county justifies payment 
39.14 	for those additional days. County policies for payment of absent days in excess of the 
39.15 	statewide absent day policy and justification for these county policies must be included in 
39.16 	the county's child care fund plan under section 119B.08, subdivision 3.

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

39.18 	Sec. 3. Minnesota Statutes 2010, section 256.01, is amended by adding a subdivision 
39.19 	to read:
39.20 		Subd. 18c.Drug convictions. (a) The state court administrator shall report every 
39.21 	six months by electronic means to the commissioner of human services the name, address, 
39.22 	date of birth, and, if available, driver's license or state identification card number, date 
39.23 	of sentence, effective date of the sentence, and county in which the conviction occurred 
39.24 	of each individual who has been convicted of a felony under chapter 152 during the 
39.25 	previous six months.
39.26 	(b) The commissioner shall determine whether the individuals who are the subject of 
39.27 	the data reported under paragraph (a) are receiving public assistance under chapter 256D 
39.28 	or 256J, and if any individual is receiving assistance under chapter 256D or 256J, the 
39.29 	commissioner shall instruct the county to proceed under section 256D.024 or 256J.26, 
39.30 	whichever is applicable, for this individual.
39.31 	(c) The commissioner shall not retain any data received under paragraph (a) that 
39.32 	does not relate to an individual receiving publicly funded assistance under chapter 256D 
39.33 	or 256J.
39.34 	(d) In addition to the routine data transfer under paragraph (a), the state court 
39.35 	administrator shall provide a onetime report of the data fields under paragraph (a) for 
40.1 	individuals with a felony drug conviction under chapter 152 dated from July 1, 1997, until 
40.2 	the date of the data transfer. The commissioner shall perform the tasks identified under 
40.3 	paragraph (b) related to this data and shall retain the data according to paragraph (c).

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

40.5 	Sec. 4. Minnesota Statutes 2010, section 256.01, is amended by adding a subdivision 
40.6 	to read:
40.7 		Subd. 18d.Data sharing with Department of Human Services; multiple 
40.8 	identification cards. (a) The commissioner of public safety shall, on a monthly basis, 
40.9 	provide the commissioner of human services with the first, middle, and last name, 
40.10 	the address, date of birth, and driver's license or state identification card number of all 
40.11 	applicants and holders whose drivers' licenses and state identification cards have been 
40.12 	canceled under section 171.14, paragraph (a), clause (2) or (3), by the commissioner of 
40.13 	public safety. After the initial data report has been provided by the commissioner of 
40.14 	public safety to the commissioner of human services under this paragraph, subsequent 
40.15 	reports shall only include cancellations that occurred after the end date of the cancellations 
40.16 	represented in the previous data report.
40.17 	(b) The commissioner of human services shall compare the information provided 
40.18 	under paragraph (a) with the commissioner's data regarding recipients of all public 
40.19 	assistance programs managed by the Department of Human Services to determine whether 
40.20 	any individual with multiple identification cards issued by the Department of Public 
40.21 	Safety has illegally or improperly enrolled in any public assistance program managed by 
40.22 	the Department of Human Services.
40.23 	(c) If the commissioner of human services determines that an applicant or recipient 
40.24 	has illegally or improperly enrolled in any public assistance program, the commissioner 
40.25 	shall provide all due process protections to the individual before terminating the individual 
40.26 	from the program according to applicable statute and notifying the county attorney.

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

40.28 	Sec. 5. Minnesota Statutes 2010, section 256.01, is amended by adding a subdivision 
40.29 	to read:
40.30 		Subd. 18e.Data sharing with Department of Human Services; legal presence 
40.31 	status. (a) The commissioner of public safety shall, on a monthly basis, provide the 
40.32 	commissioner of human services with the first, middle, and last name, address, date of 
40.33 	birth, and driver's license or state identification number of all applicants and holders of 
41.1 	drivers' licenses and state identification cards whose temporary legal presence status has 
41.2 	expired and whose driver's license or identification card has been canceled under section 
41.3 	171.14 by the commissioner of public safety.
41.4 	(b) The commissioner of human services shall use the information provided under 
41.5 	paragraph (a) to determine whether the eligibility of any recipients of public assistance 
41.6 	programs managed by the Department of Human Services has changed as a result of the 
41.7 	status change in the Department of Public Safety data.
41.8 	(c) If the commissioner of human services determines that a recipient has illegally or 
41.9 	improperly received benefits from any public assistance program, the commissioner shall 
41.10 	provide all due process protections to the individual before terminating the individual from 
41.11 	the program according to applicable statute and notifying the county attorney.

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

41.13 	Sec. 6. Minnesota Statutes 2011 Supplement, section 256.987, subdivision 1, is 
41.14 	amended to read:
41.15 		Subdivision 1.Electronic benefit transfer (EBT) card. Cash benefits for the 
41.16 	general assistance and Minnesota supplemental aid programs under chapter 256D and 
41.17 	programs under chapter 256J must be issued on a separate an EBT card with the name of 
41.18 	the head of household printed on the card. The card must include the following statement: 
41.19 	"It is unlawful to use this card to purchase tobacco products or alcoholic beverages." This 
41.20 	card must be issued within 30 calendar days of an eligibility determination. During the 
41.21 	initial 30 calendar days of eligibility, a recipient may have cash benefits issued on an EBT 
41.22 	card without a name printed on the card. This card may be the same card on which food 
41.23 	support benefits are issued and does not need to meet the requirements of this section.

41.24 	Sec. 7. Minnesota Statutes 2011 Supplement, section 256.987, subdivision 2, is 
41.25 	amended to read:
41.26 		Subd. 2.Prohibited purchases. An individual with an EBT debit cardholders in
41.27 	card issued for one of the programs listed under subdivision 1 are is prohibited from using 
41.28 	the EBT debit card to purchase tobacco products and alcoholic beverages, as defined in 
41.29 	section 340A.101, subdivision 2. It is unlawful for an EBT cardholder to purchase or 
41.30 	attempt to purchase tobacco products or alcoholic beverages with the cardholder's EBT 
41.31 	card. Any unlawful use prohibited purchases made under this subdivision shall constitute 
41.32 	fraud unlawful use and result in disqualification of the cardholder from the program under 
41.33 	section 256.98, subdivision 8 as provided in subdivision 4.

42.1 	Sec. 8. Minnesota Statutes 2011 Supplement, section 256.987, is amended by adding a 
42.2 	subdivision to read:
42.3 		Subd. 3.EBT use restricted to certain states. EBT debit cardholders in programs 
42.4 	listed under subdivision 1 are prohibited from using the cash portion of the EBT card at 
42.5 	vendors and automatic teller machines located outside of Minnesota, Iowa, North Dakota, 
42.6 	South Dakota, or Wisconsin. This subdivision does not apply to the food portion.

42.7 	Sec. 9. Minnesota Statutes 2011 Supplement, section 256.987, is amended by adding a 
42.8 	subdivision to read:
42.9 		Subd. 4.Disqualification. (a) Any person found to be guilty of purchasing tobacco 
42.10 	products or alcoholic beverages with their EBT debit card by a federal or state court or 
42.11 	by an administrative hearing determination, or waiver thereof, through a disqualification 
42.12 	consent agreement, or as part of any approved diversion plan under section 401.065, or 
42.13 	any court-ordered stay which carries with it any probationary or other conditions, in 
42.14 	the: (1) Minnesota family investment program and any affiliated program to include the 
42.15 	diversionary work program and the work participation cash benefit program under chapter 
42.16 	256J; (2) general assistance program under chapter 256D; or (3) Minnesota supplemental 
42.17 	aid program under chapter 256D, shall be disqualified from all of the listed programs.
42.18 	(b) The needs of the disqualified individual shall not be taken into consideration 
42.19 	in determining the grant level for that assistance unit: (1) for one year after the first 
42.20 	offense; (2) for two years after the second offense; and (3) permanently after the third or 
42.21 	subsequent offense.
42.22 	(c) The period of program disqualification shall begin on the date stipulated on the 
42.23 	advance notice of disqualification without possibility for postponement for administrative 
42.24 	stay or administrative hearing and shall continue through completion unless and until the 
42.25 	findings upon which the sanctions were imposed are reversed by a court of competent 
42.26 	jurisdiction. The period for which sanctions are imposed is not subject to review.

42.27 	EFFECTIVE DATE. This section is effective June 1, 2012.

42.28 	Sec. 10. Minnesota Statutes 2010, section 256D.06, subdivision 1b, is amended to read:
42.29 		Subd. 1b.Earned income savings account. In addition to the $50 disregard 
42.30 	required under subdivision 1, the county agency shall disregard an additional earned 
42.31 	income up to a maximum of $150 $500 per month for: (1) persons residing in facilities 
42.32 	licensed under Minnesota Rules, parts 9520.0500 to 9520.0690 and 9530.2500 to 
42.33 	9530.4000, and for whom discharge and work are part of a treatment plan; (2) persons 
42.34 	living in supervised apartments with services funded under Minnesota Rules, parts 
43.1 	9535.0100 to 9535.1600, and for whom discharge and work are part of a treatment plan; 
43.2 	and (3) persons residing in group residential housing, as that term is defined in section 
43.3 	256I.03, subdivision 3, for whom the county agency has approved a discharge plan 
43.4 	which includes work. The additional amount disregarded must be placed in a separate 
43.5 	savings account by the eligible individual, to be used upon discharge from the residential 
43.6 	facility into the community. For individuals residing in a chemical dependency program 
43.7 	licensed under Minnesota Rules, part 9530.4100, subpart 22, item D, withdrawals from 
43.8 	the savings account require the signature of the individual and for those individuals with 
43.9 	an authorized representative payee, the signature of the payee. A maximum of $1,000
43.10 	$2,000, including interest, of the money in the savings account must be excluded from 
43.11 	the resource limits established by section 256D.08, subdivision 1, clause (1). Amounts in 
43.12 	that account in excess of $1,000 $2,000 must be applied to the resident's cost of care. If 
43.13 	excluded money is removed from the savings account by the eligible individual at any 
43.14 	time before the individual is discharged from the facility into the community, the money is 
43.15 	income to the individual in the month of receipt and a resource in subsequent months. If 
43.16 	an eligible individual moves from a community facility to an inpatient hospital setting, 
43.17 	the separate savings account is an excluded asset for up to 18 months. During that time, 
43.18 	amounts that accumulate in excess of the $1,000 $2,000 savings limit must be applied to 
43.19 	the patient's cost of care. If the patient continues to be hospitalized at the conclusion of the 
43.20 	18-month period, the entire account must be applied to the patient's cost of care.

43.21 	Sec. 11. Minnesota Statutes 2011 Supplement, section 256E.35, subdivision 5, is 
43.22 	amended to read:
43.23 		Subd. 5.Household eligibility; participation. (a) To be eligible for state or TANF
43.24 	matching funds in the family assets for independence initiative, a household must meet the 
43.25 	eligibility requirements of the federal Assets for Independence Act, Public Law 105-285, 
43.26 	in Title IV, section 408 of that act.
43.27 	(b) Each participating household must sign a family asset agreement that includes 
43.28 	the amount of scheduled deposits into its savings account, the proposed use, and the 
43.29 	proposed savings goal. A participating household must agree to complete an economic 
43.30 	literacy training program.
43.31 	Participating households may only deposit money that is derived from household 
43.32 	earned income or from state and federal income tax credits.

43.33 	Sec. 12. Minnesota Statutes 2011 Supplement, section 256E.35, subdivision 6, is 
43.34 	amended to read:
44.1 		Subd. 6.Withdrawal; matching; permissible uses. (a) To receive a match, a 
44.2 	participating household must transfer funds withdrawn from a family asset account to its 
44.3 	matching fund custodial account held by the fiscal agent, according to the family asset 
44.4 	agreement. The fiscal agent must determine if the match request is for a permissible use 
44.5 	consistent with the household's family asset agreement.
44.6 	The fiscal agent must ensure the household's custodial account contains the 
44.7 	applicable matching funds to match the balance in the household's account, including 
44.8 	interest, on at least a quarterly basis and at the time of an approved withdrawal. Matches 
44.9 	must be provided as follows:
44.10 	(1) from state grant and TANF funds, a matching contribution of $1.50 for every 
44.11 	$1 of funds withdrawn from the family asset account equal to the lesser of $720 per 
44.12 	year or a $3,000 lifetime limit; and 
44.13 	(2) from nonstate funds, a matching contribution of no less than $1.50 for every $1 
44.14 	of funds withdrawn from the family asset account equal to the lesser of $720 per year or 
44.15 	a $3,000 lifetime limit.
44.16 	(b) Upon receipt of transferred custodial account funds, the fiscal agent must make a 
44.17 	direct payment to the vendor of the goods or services for the permissible use.

44.18 	Sec. 13. Minnesota Statutes 2010, section 256E.37, subdivision 1, is amended to read:
44.19 		Subdivision 1.Grant authority. The commissioner may make grants to state 
44.20 	agencies and political subdivisions to construct or rehabilitate facilities for early childhood 
44.21 	programs, crisis nurseries, or parenting time centers. The following requirements apply:
44.22 	(1) The facilities must be owned by the state or a political subdivision, but may 
44.23 	be leased under section 16A.695 to organizations that operate the programs. The 
44.24 	commissioner must prescribe the terms and conditions of the leases.
44.25 	(2) A grant for an individual facility must not exceed $500,000 for each program 
44.26 	that is housed in the facility, up to a maximum of $2,000,000 for a facility that houses 
44.27 	three programs or more. Programs include Head Start, School Readiness, Early Childhood 
44.28 	Family Education, licensed child care, and other early childhood intervention programs.
44.29 	(3) State appropriations must be matched on a 50 percent basis with nonstate funds. 
44.30 	The matching requirement must apply program wide and not to individual grants.
44.31 	(4) At least 80 percent of grant funds must be distributed to facilities located in 
44.32 	counties not included in the definition under section 473.121, subdivision 4.

44.33 	Sec. 14. Minnesota Statutes 2011 Supplement, section 256I.05, subdivision 1a, is 
44.34 	amended to read:
45.1 		Subd. 1a.Supplementary service rates. (a) Subject to the provisions of section 
45.2 	256I.04, subdivision 3, the county agency may negotiate a payment not to exceed $426.37 
45.3 	for other services necessary to provide room and board provided by the group residence 
45.4 	if the residence is licensed by or registered by the Department of Health, or licensed by 
45.5 	the Department of Human Services to provide services in addition to room and board, 
45.6 	and if the provider of services is not also concurrently receiving funding for services for 
45.7 	a recipient under a home and community-based waiver under title XIX of the Social 
45.8 	Security Act; or funding from the medical assistance program under section 256B.0659, 
45.9 	for personal care services for residents in the setting; or residing in a setting which 
45.10 	receives funding under Minnesota Rules, parts 9535.2000 to 9535.3000. If funding is 
45.11 	available for other necessary services through a home and community-based waiver, or 
45.12 	personal care services under section 256B.0659, then the GRH rate is limited to the rate 
45.13 	set in subdivision 1. Unless otherwise provided in law, in no case may the supplementary 
45.14 	service rate exceed $426.37. The registration and licensure requirement does not apply to 
45.15 	establishments which are exempt from state licensure because they are located on Indian 
45.16 	reservations and for which the tribe has prescribed health and safety requirements. Service 
45.17 	payments under this section may be prohibited under rules to prevent the supplanting of 
45.18 	federal funds with state funds. The commissioner shall pursue the feasibility of obtaining 
45.19 	the approval of the Secretary of Health and Human Services to provide home and 
45.20 	community-based waiver services under title XIX of the Social Security Act for residents 
45.21 	who are not eligible for an existing home and community-based waiver due to a primary 
45.22 	diagnosis of mental illness or chemical dependency and shall apply for a waiver if it is 
45.23 	determined to be cost-effective.
45.24 	(b) The commissioner is authorized to make cost-neutral transfers from the GRH 
45.25 	fund for beds under this section to other funding programs administered by the department 
45.26 	after consultation with the county or counties in which the affected beds are located. 
45.27 	The commissioner may also make cost-neutral transfers from the GRH fund to county 
45.28 	human service agencies for beds permanently removed from the GRH census under a plan 
45.29 	submitted by the county agency and approved by the commissioner. The commissioner 
45.30 	shall report the amount of any transfers under this provision annually to the legislature.
45.31 	(c) The provisions of paragraph (b) do not apply to a facility that has its 
45.32 	reimbursement rate established under section 256B.431, subdivision 4, paragraph (c).
45.33 	(d) Counties must not negotiate supplementary service rates with providers of group 
45.34 	residential housing that are licensed as board and lodging with special services and that 
45.35 	do not encourage a policy of sobriety on their premises and make referrals to available 
45.36 	community services for volunteer and employment opportunities for residents.

46.1 	Sec. 15. Minnesota Statutes 2010, section 256I.05, subdivision 1e, is amended to read:
46.2 		Subd. 1e.Supplementary rate for certain facilities. (a) Notwithstanding the 
46.3 	provisions of subdivisions 1a and 1c, beginning July 1, 2005, a county agency shall 
46.4 	negotiate a supplementary rate in addition to the rate specified in subdivision 1, not to 
46.5 	exceed $700 per month, including any legislatively authorized inflationary adjustments, 
46.6 	for a group residential housing provider that:
46.7 	(1) is located in Hennepin County and has had a group residential housing contract 
46.8 	with the county since June 1996;
46.9 	(2) operates in three separate locations a 75-bed facility, a 50-bed facility, and a 
46.10 	26-bed facility; and
46.11 	(3) serves a chemically dependent clientele, providing 24 hours per day supervision 
46.12 	and limiting a resident's maximum length of stay to 13 months out of a consecutive 
46.13 	24-month period.
46.14 	(b) Notwithstanding subdivisions 1a and 1c, beginning July 1, 2013, a county 
46.15 	agency shall negotiate a supplementary rate in addition to the rate specified in subdivision 
46.16 	1, not to exceed $700 per month, including any legislatively authorized inflationary 
46.17 	adjustments, for the group residential provider described under paragraph (a), not to 
46.18 	exceed an additional 175 beds.

46.19 	EFFECTIVE DATE. This section is effective July 1, 2013.

46.20 	Sec. 16. Minnesota Statutes 2010, section 256J.26, subdivision 1, is amended to read:
46.21 		Subdivision 1.Person convicted of drug offenses. (a) Applicants or participants
46.22 	An individual who have has been convicted of a felony level drug offense committed after 
46.23 	July 1, 1997, may, if otherwise eligible, receive MFIP benefits subject to the following 
46.24 	conditions: during the previous ten years from the date of application or recertification is 
46.25 	subject to the following:
46.26 	(1) Benefits for the entire assistance unit must be paid in vendor form for shelter and 
46.27 	utilities during any time the applicant is part of the assistance unit.
46.28 	(2) The convicted applicant or participant shall be subject to random drug testing as 
46.29 	a condition of continued eligibility and following any positive test for an illegal controlled 
46.30 	substance is subject to the following sanctions:
46.31 	(i) for failing a drug test the first time, the residual amount of the participant's grant 
46.32 	after making vendor payments for shelter and utility costs, if any, must be reduced by an 
46.33 	amount equal to 30 percent of the MFIP standard of need for an assistance unit of the same 
46.34 	size. When a sanction under this subdivision is in effect, the job counselor must attempt 
46.35 	to meet with the person face-to-face. During the face-to-face meeting, the job counselor 
47.1 	must explain the consequences of a subsequent drug test failure and inform the participant 
47.2 	of the right to appeal the sanction under section 256J.40. If a face-to-face meeting is 
47.3 	not possible, the county agency must send the participant a notice of adverse action as 
47.4 	provided in section 256J.31, subdivisions 4 and 5, and must include the information 
47.5 	required in the face-to-face meeting; or
47.6 	(ii) for failing a drug test two times, the participant is permanently disqualified from 
47.7 	receiving MFIP assistance, both the cash and food portions. The assistance unit's MFIP 
47.8 	grant must be reduced by the amount which would have otherwise been made available to 
47.9 	the disqualified participant. Disqualification under this item does not make a participant 
47.10 	ineligible for food stamps or food support. Before a disqualification under this provision is 
47.11 	imposed, the job counselor must attempt to meet with the participant face-to-face. During 
47.12 	the face-to-face meeting, the job counselor must identify other resources that may be 
47.13 	available to the participant to meet the needs of the family and inform the participant of 
47.14 	the right to appeal the disqualification under section 256J.40. If a face-to-face meeting is 
47.15 	not possible, the county agency must send the participant a notice of adverse action as 
47.16 	provided in section 256J.31, subdivisions 4 and 5, and must include the information 
47.17 	required in the face-to-face meeting.
47.18 	(3) A participant who fails a drug test the first time and is under a sanction due to 
47.19 	other MFIP program requirements is considered to have more than one occurrence of 
47.20 	noncompliance and is subject to the applicable level of sanction as specified under section 
47.21 	256J.46, subdivision 1, paragraph (d).
47.22 	(b) Applicants requesting only food stamps or food support or participants receiving 
47.23 	only food stamps or food support, who have been convicted of a drug offense that 
47.24 	occurred after July 1, 1997, may, if otherwise eligible, receive food stamps or food support 
47.25 	if the convicted applicant or participant is subject to random drug testing as a condition 
47.26 	of continued eligibility. Following a positive test for an illegal controlled substance, the 
47.27 	applicant is subject to the following sanctions:
47.28 	(1) for failing a drug test the first time, food stamps or food support shall be reduced 
47.29 	by an amount equal to 30 percent of the applicable food stamp or food support allotment. 
47.30 	When a sanction under this clause is in effect, a job counselor must attempt to meet with 
47.31 	the person face-to-face. During the face-to-face meeting, a job counselor must explain 
47.32 	the consequences of a subsequent drug test failure and inform the participant of the right 
47.33 	to appeal the sanction under section 256J.40. If a face-to-face meeting is not possible, 
47.34 	a county agency must send the participant a notice of adverse action as provided in 
47.35 	section 256J.31, subdivisions 4 and 5, and must include the information required in the 
47.36 	face-to-face meeting; and
48.1 	(2) for failing a drug test two times, the participant is permanently disqualified from 
48.2 	receiving food stamps or food support. Before a disqualification under this provision is 
48.3 	imposed, a job counselor must attempt to meet with the participant face-to-face. During 
48.4 	the face-to-face meeting, the job counselor must identify other resources that may be 
48.5 	available to the participant to meet the needs of the family and inform the participant of 
48.6 	the right to appeal the disqualification under section 256J.40. If a face-to-face meeting 
48.7 	is not possible, a county agency must send the participant a notice of adverse action as 
48.8 	provided in section 256J.31, subdivisions 4 and 5, and must include the information 
48.9 	required in the face-to-face meeting.
48.10 	(c) (b) For the purposes of this subdivision, "drug offense" means an offense that 
48.11 	occurred after July 1, 1997, during the previous ten years from the date of application 
48.12 	or recertification of sections 152.021 to 152.025, 152.0261, 152.0262, or152.096, or 
48.13 	152.137. Drug offense also means a conviction in another jurisdiction of the possession, 
48.14 	use, or distribution of a controlled substance, or conspiracy to commit any of these 
48.15 	offenses, if the offense occurred after July 1, 1997, during the previous ten years from 
48.16 	the date of application or recertification and the conviction is a felony offense in that 
48.17 	jurisdiction, or in the case of New Jersey, a high misdemeanor.

48.18 	EFFECTIVE DATE. This section is effective July 1, 2012, for all new MFIP 
48.19 	applicants who apply on or after that date and for all recertifications occurring on or 
48.20 	after that date.

48.21 	Sec. 17. Minnesota Statutes 2010, section 256J.26, is amended by adding a subdivision 
48.22 	to read:
48.23 		Subd. 5.Vendor payment; uninhabitable units. Upon discovery by the county 
48.24 	that a unit has been deemed uninhabitable under section 504B.131, the county shall 
48.25 	immediately notify the landlord to return the vendor paid rent under this section for the 
48.26 	month in which the discovery occurred. The county shall cease future rent payments for 
48.27 	the uninhabitable housing units until the landlord demonstrates the premises are fit for 
48.28 	the intended use. A landlord who is required to return vendor paid rent or is prohibited 
48.29 	from receiving future rent under this subdivision may not take an eviction action against 
48.30 	anyone in the assistance unit.

48.31 	Sec. 18. Laws 2010, chapter 374, section 1, is amended to read:
48.32 	Section 1. LADDER OUT OF POVERTY ASSET DEVELOPMENT AND 
48.33 	FINANCIAL LITERACY TASK FORCE.
 48.34 		Subdivision 1.Creation. (a) The task force consists of the following members:
49.1 	(1) four senators, including two members of the majority party and two members of 
49.2 	the minority party, appointed by the Subcommittee on Committees of the Committee on 
49.3 	Rules and Administration of the senate;
49.4 	(2) four members of the house of representatives, including two members of the 
49.5 	majority party, appointed by the speaker of the house, and two members of the minority 
49.6 	party, appointed by the minority leader; and
49.7 	(3) the commissioner of the Minnesota Department of Commerce or the 
49.8 	commissioner's designee; and.
49.9 	(4) the attorney general or the attorney general's designee.
49.10 	(b) The task force shall ensure that representatives of the following have the 
49.11 	opportunity to meet with and present views to the task force: the attorney general; credit 
49.12 	unions; independent community banks; state and federal financial institutions; community 
49.13 	action agencies; faith-based financial counseling agencies; faith-based social justice 
49.14 	organizations; legal services organizations representing low-income persons; nonprofit 
49.15 	organizations providing free tax preparation services as part of the volunteer income tax 
49.16 	assistance program; relevant state and local agencies; University of Minnesota faculty 
49.17 	involved in personal and family financial education; philanthropic organizations that have 
49.18 	as one of their missions combating predatory lending; organizations representing older 
49.19 	Minnesotans; and organizations representing the interests of women, Latinos and Latinas, 
49.20 	African-Americans, Asian-Americans, American Indians, and immigrants.
49.21 		Subd. 2.Duties. (a) At a minimum, the task force must identify specific policies, 
49.22 	strategies, and actions to: reduce asset poverty and increase household financial security 
49.23 	by improving opportunities for households to earn, learn, save, invest, and protect 
49.24 	assets through expansion of such asset building opportunities as the Family Assets for 
49.25 	Independence in Minnesota (FAIM) program and Earned Income Tax Credit (EITC) 
49.26 	program.
49.27 	(1) increase opportunities for poor and near-poor families and individuals to acquire 
49.28 	assets and create and build wealth;
49.29 	(2) expand the utilization of Family Assets for Independence in Minnesota (FAIM) 
49.30 	or other culturally specific individual development account programs;
49.31 	(3) reduce or eliminate predatory financial practices in Minnesota through regulatory 
49.32 	actions, legislative enactments, and the development and deployment of alternative, 
49.33 	nonpredatory financial products;
49.34 	(4) provide incentives or assistance to private sector financial institutions to 
49.35 	offer additional programs and services that provide alternatives to and education about 
49.36 	predatory financial products;
50.1 	(5) provide financial literacy information to low-income families and individuals at 
50.2 	the time the recipient has the ability, opportunity, and motivation to receive, understand, 
50.3 	and act on the information provided; and
50.4 	(6) identify incentives and mechanisms to increase community engagement in 
50.5 	combating poverty and helping poor and near-poor families and individuals to acquire 
50.6 	assets and create and build wealth.
50.7 	For purposes of this section, "asset poverty" means an individual's or family's 
50.8 	inability to meet fixed financial obligations and other financial requirements of daily living 
50.9 	with existing assets for a three-month period in the event of a disruption in income or 
50.10 	extraordinary economic emergency.
50.11 	(b) By June 1, 2012 During the 2013 and 2014 legislative sessions, the task force 
50.12 	must provide written recommendations and any draft develop legislation necessary 
50.13 	to implement the recommendations to the chairs and ranking minority members of the 
50.14 	legislative committees and divisions with jurisdiction over commerce and consumer 
50.15 	protection fulfill the duties enumerated in paragraph (a).
50.16 		Subd. 3.Administrative provisions. (a) The director of the Legislative 
50.17 	Coordinating Commission, or a designee of the director, must convene the initial meeting 
50.18 	of the task force by September 15, 2010. The members of the task force must elect a chair 
50.19 	or cochairs from the legislative members at the initial meeting.
50.20 	(b) Members of the task force serve without compensation or payment of expenses 
50.21 	except as provided in this paragraph. To the extent possible, meetings of the task force 
50.22 	shall be scheduled on dates when legislative members of the task force are able to 
50.23 	attend legislative meetings that would make them eligible to receive legislative per diem 
50.24 	payments.
50.25 	(c) The task force expires June 1, 2012, or upon the submission of the report required 
50.26 	under subdivision 3, whichever is earlier 2014.
50.27 	(d) The task force may accept gifts and grants, which are accepted on behalf of the 
50.28 	state and constitute donations to the state. The funds must be deposited in an account in 
50.29 	the special revenue fund and are appropriated to the Legislative Coordinating Commission 
50.30 	for purposes of the task force.
50.31 	(e) The Legislative Coordinating Commission shall provide fiscal services to the 
50.32 	task force as needed under this subdivision.
50.33 		Subd. 4.Deadline for appointments and designations. The appointments and 
50.34 	designations authorized under this section must be completed no later than August 15, 
50.35 	2010 2012.

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

51.1 	Sec. 19. GRANT PROGRAM TO PROMOTE HEALTHY COMMUNITY 
51.2 	INITIATIVES.
 51.3 	(a) The commissioner of human services must contract with the Search Institute to 
51.4 	help local communities develop, expand, and maintain the tools, training, and resources 
51.5 	needed to foster positive community development and effectively engage people in their 
51.6 	community. The Search Institute must: (1) provide training in community mobilization, 
51.7 	youth development, and assets getting to outcomes; (2) provide ongoing technical 
51.8 	assistance to communities receiving grants under this section; (3) use best practices to 
51.9 	promote community development; (4) share best program practices with other interested 
51.10 	communities; (5) create electronic and other opportunities for communities to share 
51.11 	experiences in and resources for promoting healthy community development; and (6) 
51.12 	provide an annual report of the strong communities project.
51.13 	(b) Specifically, the Search Institute must use a competitive grant process to select 
51.14 	four interested communities throughout Minnesota to undertake strong community 
51.15 	mobilization initiatives to support communities wishing to catalyze multiple sectors to 
51.16 	create or strengthen a community collaboration to address issues of poverty in their 
51.17 	communities. The Search Institute must provide the selected communities with the 
51.18 	tools, training, and resources they need for successfully implementing initiatives focused 
51.19 	on strengthening the community. The Search Institute also must use a competitive 
51.20 	grant process to provide four strong community innovation grants to encourage current 
51.21 	community initiatives to bring new innovative approaches to their work to reduce poverty. 
51.22 	Finally, the Search Institute must work to strengthen networking and information sharing 
51.23 	activities among all healthy community initiatives throughout Minnesota, including 
51.24 	sharing best program practices and providing personal and electronic opportunities for 
51.25 	peer learning and ongoing program support.
51.26 	(c) In order to receive a grant under paragraph (b), a community must show 
51.27 	involvement of at least three sectors of their community and the active leadership of both 
51.28 	youth and adults. Sectors may include, but are not limited to, local government, schools, 
51.29 	community action agencies, faith communities, businesses, higher education institutions, 
51.30 	and the medical community. In addition, communities must agree to: (1) attend training 
51.31 	on community mobilization processes and strength-based approaches; (2) apply the assets 
51.32 	getting to outcomes process in their initiative; (3) meet at least two times during the 
51.33 	grant period to share successes and challenges with other grantees; (4) participate on an 
51.34 	electronic listserv to share information throughout the period on their work; and (5) all 
51.35 	communication requirements and reporting processes.
52.1 	(d) The commissioner of human services must evaluate the effectiveness of this 
52.2 	program and must recommend to the committees of the legislature with jurisdiction over 
52.3 	health and human services reform and finance by February 15, 2013, whether or not 
52.4 	to make the program available statewide. The Search Institute annually must report to 
52.5 	the commissioner of human services on the services it provided and the grant money 
52.6 	it expended under this section.

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

52.8 	Sec. 20. CIRCLES OF SUPPORT GRANTS.
 52.9 	The commissioner of human services must provide grants to community action 
52.10 	agencies to help local communities develop, expand, and maintain the tools, training, and 
52.11 	resources needed to foster social assets to assist people out of poverty through circles of 
52.12 	support. The circles of support model must provide a framework for a community to build 
52.13 	relationships across class and race lines so that people can work together to advocate for 
52.14 	change in their communities and move individuals toward self-sufficiency.
52.15 	Specifically, circles of support initiatives must focus on increasing social capital, 
52.16 	income, educational attainment, and individual accountability, while reducing debt, 
52.17 	service dependency, and addressing systemic disparities that hold poverty in place. The 
52.18 	effort must support the development of local guiding coalitions as the link between the 
52.19 	community and circles of support for resource development and funding leverage.

52.20 	EFFECTIVE DATE. This section is effective July 1, 2012.

52.21 	Sec. 21. MINNESOTA VISIBLE CHILD WORK GROUP.
 52.22 		Subdivision 1.Purpose. The Minnesota visible child work group is established to 
52.23 	identify and recommend issues that should be addressed in a statewide, comprehensive 
52.24 	plan to improve the well-being of children who are homeless or have experienced 
52.25 	homelessness.
52.26 		Subd. 2.Membership. The members of the Minnesota visible child work group 
52.27 	include: (1) two members of the Minnesota house of representatives appointed by 
52.28 	the speaker of the house, one member from the majority party and one member from 
52.29 	the minority party; (2) two members of the Minnesota senate appointed by the senate 
52.30 	Subcommittee on Committees of the Committee on Rules and Administration, one 
52.31 	member from the majority party and one member from the minority party; (3) three 
52.32 	representatives from family shelter, transitional housing, and supportive housing providers 
52.33 	appointed by the governor; (4) two individuals appointed by the governor who have 
53.1 	experienced homelessness; (5) three housing and child advocates appointed by the 
53.2 	governor; (6) three representatives from the business or philanthropic community; and (7) 
53.3 	children's cabinet members, or their designees. Work group membership should include 
53.4 	people from rural, suburban, and urban areas of the state.
53.5 		Subd. 3.Duties. The work group shall: (1) recommend goals and objectives for a 
53.6 	comprehensive, statewide plan to improve the well-being of children who are homeless or 
53.7 	who have experienced homelessness; (2) recommend a definition of "child well-being"; 
53.8 	(3) identify evidence-based interventions and best practices improving the well-being 
53.9 	of young children; (4) plan implementation timelines and ways to measure progress, 
53.10 	including measures of child well-being from birth through adolescence; (5) identify ways 
53.11 	to address issues of collaboration and coordination across systems, including education, 
53.12 	health, human services, and housing; (6) recommend the type of data and information 
53.13 	necessary to develop, effectively implement, and monitor a strategic plan; (7) examine and 
53.14 	make recommendations regarding funding to implement an effective plan; and (8) provide 
53.15 	recommendations for ongoing reports on the well-being of children, monitoring progress 
53.16 	in implementing the statewide comprehensive plan, and any other issues determined to be 
53.17 	relevant to achieving the goals of this section.
53.18 		Subd. 4.Report. The work group shall make recommendations under subdivision 
53.19 	3 to the legislative committees with jurisdiction over education, housing, health, and 
53.20 	human services policy and finance by December 15, 2012. The recommendations must 
53.21 	also be submitted to the children's cabinet to provide the foundation for a statewide 
53.22 	visible child plan.
53.23 		Subd. 5.Expiration. The Minnesota visible child work group expires on June 
53.24 	30, 2013.

53.25 	Sec. 22. UNIFORM ASSET LIMIT REQUIREMENTS.
 53.26 	The commissioner of human services, in consultation with county human 
53.27 	services representatives, shall analyze the differences in asset limit requirements across 
53.28 	human services assistance programs, including group residential housing, Minnesota 
53.29 	supplemental aid, general assistance, Minnesota family investment program, diversionary 
53.30 	work program, the federal Supplemental Nutrition Assistance Program, state food 
53.31 	assistance programs, and child care programs. The goal of the analysis is to establish a 
53.32 	consistent asset limit across human services programs and minimize the administrative 
53.33 	burdens on counties in implementing asset tests. The commissioner shall report its 
53.34 	findings and conclusions to the legislative committees with jurisdiction over health and 
54.1 	human services policy and finance by January 15, 2013, and include draft legislation 
54.2 	establishing a uniform asset limit for human services assistance programs.

54.3 	Sec. 23. DIRECTION TO THE COMMISSIONER.
 54.4 	The commissioner of human services, in consultation with the commissioner of 
54.5 	public safety, shall report to the legislative committees with jurisdiction over health and 
54.6 	human services policy and finance regarding the implementations of Minnesota Statutes, 
54.7 	section 256.01, subdivisions 18c, 18d, and 18e, and the number of persons affected and 
54.8 	fiscal impact by program by April 1, 2013.

54.9 	Sec. 24. REVISOR INSTRUCTION.
 54.10 	The revisor of statutes shall change the term "assistance transaction card" or 
54.11 	similar terms to "electronic benefit transaction" or similar terms wherever they appear in 
54.12 	Minnesota Statutes, chapter 256. The revisor may make changes necessary to correct the 
54.13 	punctuation, grammar, or structure of the remaining text and preserve its meaning.

54.14 	ARTICLE 4
54.15 	CONTINUING CARE

54.16 	Section 1. Minnesota Statutes 2010, section 62J.496, subdivision 2, is amended to read:
54.17 		Subd. 2.Eligibility. (a) "Eligible borrower" means one of the following:
54.18 	(1) federally qualified health centers;
54.19 	(2) community clinics, as defined under section 145.9268;
54.20 	(3) nonprofit or local unit of government hospitals licensed under sections 144.50 
54.21 	to 144.56;
54.22 	(4) individual or small group physician practices that are focused primarily on 
54.23 	primary care;
54.24 	(5) nursing facilities licensed under sections 144A.01 to 144A.27;
54.25 	(6) local public health departments as defined in chapter 145A; and
54.26 	(7) other providers of health or health care services approved by the commissioner 
54.27 	for which interoperable electronic health record capability would improve quality of 
54.28 	care, patient safety, or community health.
54.29 	(b) The commissioner shall administer the loan fund to prioritize support and 
54.30 	assistance to:
54.31 	(1) critical access hospitals;
54.32 	(2) federally qualified health centers;
55.1 	(3) entities that serve uninsured, underinsured, and medically underserved 
55.2 	individuals, regardless of whether such area is urban or rural; and
55.3 	(4) individual or small group practices that are primarily focused on primary care.;
55.4 	(5) nursing facilities certified to participate in the medical assistance program; and
55.5 	(6) providers enrolled in the elderly waiver program of customized living or 24-hour 
55.6 	customized living of the medical assistance program, if at least half of their annual 
55.7 	operating revenue is paid under the medical assistance program.
55.8 	(c) An eligible applicant must submit a loan application to the commissioner of 
55.9 	health on forms prescribed by the commissioner. The application must include, at a 
55.10 	minimum:
55.11 	(1) the amount of the loan requested and a description of the purpose or project 
55.12 	for which the loan proceeds will be used;
55.13 	(2) a quote from a vendor;
55.14 	(3) a description of the health care entities and other groups participating in the 
55.15 	project;
55.16 	(4) evidence of financial stability and a demonstrated ability to repay the loan; and
55.17 	(5) a description of how the system to be financed interoperates or plans in the 
55.18 	future to interoperate with other health care entities and provider groups located in the 
55.19 	same geographical area;
55.20 	(6) a plan on how the certified electronic health record technology will be maintained 
55.21 	and supported over time; and
55.22 	(7) any other requirements for applications included or developed pursuant to 
55.23 	section 3014 of the HITECH Act.

55.24 	Sec. 2. Minnesota Statutes 2010, section 144A.351, is amended to read:
55.25 	144A.351 BALANCING LONG-TERM CARE SERVICES AND SUPPORTS: 
55.26 	REPORT REQUIRED.
55.27 	The commissioners of health and human services, in consultation with the 
55.28 	cooperation of counties and stakeholders, including persons who need or are using 
55.29 	long-term care services and supports, lead agencies, regional entities, senior and disability 
55.30 	organization representatives, service providers, community members, including local 
55.31 	businesses, and faith-based representatives shall prepare a report to the legislature by 
55.32 	August 15, 2004 2013, and biennially thereafter, regarding the status of the full range 
55.33 	of long-term care services and supports for the elderly and children and adults with 
55.34 	disabilities in Minnesota. The report shall address:
55.35 	(1) demographics and need for long-term care services and supports in Minnesota;
56.1 	(2) summary of county and regional reports on long-term care gaps, surpluses, 
56.2 	imbalances, and corrective action plans;
56.3 	(3) status of long-term care services by county and region including:
56.4 	(i) changes in availability of the range of long-term care services and housing 
56.5 	options;
56.6 	(ii) access problems regarding long-term care services; and
56.7 	(iii) comparative measures of long-term care services availability and progress
56.8 	changes over time; and
56.9 	(4) recommendations regarding goals for the future of long-term care services and 
56.10 	supports, policy and fiscal changes, and resource needs.

56.11 	Sec. 3. Minnesota Statutes 2010, section 245A.03, is amended by adding a subdivision 
56.12 	to read:
56.13 		Subd. 6a.Adult foster care homes serving people with mental illness; 
56.14 	certification. (a) The commissioner of human services shall issue a mental health 
56.15 	certification for adult foster care homes licensed under this chapter and Minnesota Rules, 
56.16 	parts 9555.5105 to 9555.6265, that serve people with mental illness where the home is not 
56.17 	the primary residence of the license holder when a provider is determined to have met 
56.18 	the requirements under paragraph (b). This certification is voluntary for license holders. 
56.19 	The certification shall be printed on the license, and identified on the commissioner's 
56.20 	public Web site.
56.21 	(b) The requirements for certification are:
56.22 	(1) all staff working in the adult foster care home have received at least seven hours 
56.23 	of annual training covering all of the following topics:
56.24 	(i) mental health diagnoses;
56.25 	(ii) mental health crisis response and de-escalation techniques;
56.26 	(iii) recovery from mental illness;
56.27 	(iv) treatment options including evidence-based practices;
56.28 	(v) medications and their side effects;
56.29 	(vi) co-occurring substance abuse and health conditions; and
56.30 	(vii) community resources; and
56.31 	(2) a mental health professional, as defined in section 245.462, subdivision 18, or 
56.32 	a mental health practitioner as defined in section 245.462, subdivision 17, are available 
56.33 	for consultation and assistance;
56.34 	(3) there is a plan and protocol in place to address a mental health crisis; and
57.1 	(4) each individual's individual placement agreement identifies who is providing 
57.2 	clinical services and their contact information, and includes an individual crisis prevention 
57.3 	and management plan developed with the individual.
57.4 	(c) License holders seeking certification under this subdivision must request this 
57.5 	certification on forms provided by the commissioner and must submit the request to the 
57.6 	county licensing agency in which the home is located. The county licensing agency must 
57.7 	forward the request to the commissioner with a county recommendation regarding whether 
57.8 	the commissioner should issue the certification.
57.9 	(d) Ongoing compliance with the certification requirements under paragraph (b) 
57.10 	shall be reviewed by the county licensing agency at each licensing review. When a county 
57.11 	licensing agency determines that the requirements of paragraph (b) are not met, the county 
57.12 	shall inform the commissioner, and the commissioner will remove the certification.
57.13 	(e) A denial of the certification or the removal of the certification based on a 
57.14 	determination that the requirements under paragraph (b) have not been met by the adult 
57.15 	foster care license holder are not subject to appeal. A license holder that has been denied a 
57.16 	certification or that has had a certification removed may again request certification when 
57.17 	the license holder is in compliance with the requirements of paragraph (b).

57.18 	Sec. 4. Minnesota Statutes 2011 Supplement, section 245A.03, subdivision 7, is 
57.19 	amended to read:
57.20 		Subd. 7.Licensing moratorium. (a) The commissioner shall not issue an 
57.21 	initial license for child foster care licensed under Minnesota Rules, parts 2960.3000 to 
57.22 	2960.3340, or adult foster care licensed under Minnesota Rules, parts 9555.5105 to 
57.23 	9555.6265, under this chapter for a physical location that will not be the primary residence 
57.24 	of the license holder for the entire period of licensure. If a license is issued during this 
57.25 	moratorium, and the license holder changes the license holder's primary residence away 
57.26 	from the physical location of the foster care license, the commissioner shall revoke the 
57.27 	license according to section 245A.07. Exceptions to the moratorium include:
57.28 	(1) foster care settings that are required to be registered under chapter 144D;
57.29 	(2) foster care licenses replacing foster care licenses in existence on May 15, 2009, 
57.30 	and determined to be needed by the commissioner under paragraph (b);
57.31 	(3) new foster care licenses determined to be needed by the commissioner under 
57.32 	paragraph (b) for the closure of a nursing facility, ICF/MR, or regional treatment center, or 
57.33 	restructuring of state-operated services that limits the capacity of state-operated facilities;
57.34 	(4) new foster care licenses determined to be needed by the commissioner under 
57.35 	paragraph (b) for persons requiring hospital level care; or
58.1 	(5) new foster care licenses determined to be needed by the commissioner for the 
58.2 	transition of people from personal care assistance to the home and community-based 
58.3 	services.
58.4 	(b) The commissioner shall determine the need for newly licensed foster care homes 
58.5 	as defined under this subdivision using the resource need determination process described 
58.6 	in paragraph (f). As part of the determination, the commissioner shall consider the 
58.7 	availability of foster care capacity in the area in which the licensee seeks to operate, and 
58.8 	the recommendation of the local county board. The determination by the commissioner 
58.9 	must be final. A determination of need is not required for a change in ownership at 
58.10 	the same address and other data and information, including the report on the status of 
58.11 	long-term care services required under section 144A.351.
58.12 	(c) Residential settings that would otherwise be subject to the moratorium established 
58.13 	in paragraph (a), that are in the process of receiving an adult or child foster care license as 
58.14 	of July 1, 2009, shall be allowed to continue to complete the process of receiving an adult 
58.15 	or child foster care license. For this paragraph, all of the following conditions must be met 
58.16 	to be considered in the process of receiving an adult or child foster care license:
58.17 	(1) participants have made decisions to move into the residential setting, including 
58.18 	documentation in each participant's care plan;
58.19 	(2) the provider has purchased housing or has made a financial investment in the 
58.20 	property;
58.21 	(3) the lead agency has approved the plans, including costs for the residential setting 
58.22 	for each individual;
58.23 	(4) the completion of the licensing process, including all necessary inspections, is 
58.24 	the only remaining component prior to being able to provide services; and
58.25 	(5) the needs of the individuals cannot be met within the existing capacity in that 
58.26 	county.
58.27 	To qualify for the process under this paragraph, the lead agency must submit 
58.28 	documentation to the commissioner by August 1, 2009, that all of the above criteria are 
58.29 	met.
58.30 	(d) The commissioner shall study the effects of the license moratorium under this 
58.31 	subdivision and shall report back to the legislature by January 15, 2011. This study shall 
58.32 	include, but is not limited to the following:
58.33 	(1) the overall capacity and utilization of foster care beds where the physical location 
58.34 	is not the primary residence of the license holder prior to and after implementation 
58.35 	of the moratorium;
59.1 	(2) the overall capacity and utilization of foster care beds where the physical 
59.2 	location is the primary residence of the license holder prior to and after implementation 
59.3 	of the moratorium; and
59.4 	(3) the number of licensed and occupied ICF/MR beds prior to and after 
59.5 	implementation of the moratorium.
59.6 	(e) When a foster care recipient moves out of a foster home that is not the primary 
59.7 	residence of the license holder according to section 256B.49, subdivision 15, paragraph 
59.8 	(f), the county shall immediately inform the Department of Human Services Licensing 
59.9 	Division, and. The department shall immediately decrease the licensed capacity for the 
59.10 	home of foster care settings where the physical location is not the primary residence of 
59.11 	the license holder if the voluntary changes described in paragraph (f) are not sufficient 
59.12 	to meet the savings required by 2011 reductions in licensed bed capacity and maintain 
59.13 	statewide long-term care residential services capacity within budgetary limits. If a licensed 
59.14 	adult foster home becomes no longer viable, the lead agency, with the assistance of the 
59.15 	department, shall facilitate a consolidation of settings or closure. A decreased licensed 
59.16 	capacity according to this paragraph is not subject to appeal under this chapter.
59.17 	(f) A resource need determination process, managed at the state level, using the 
59.18 	available reports required by section 144A.351, and other data and information shall be 
59.19 	used to determine where the reduced capacity required under paragraph (e) will occur. 
59.20 	The commissioner shall consult with the stakeholders described in section 144A.351, and 
59.21 	employ a variety of methods to improve the state's capacity to meet long-term care service 
59.22 	needs within budgetary limits, including seeking proposals from service providers or lead 
59.23 	agencies to change service type, capacity, or location to improve services, increase the 
59.24 	independence of residents, allow for payment to hold a person's bed open from permanent 
59.25 	reassignment up to 60 days while the person tries living in a more independent setting, 
59.26 	and better meet needs identified by the long-term care services reports and statewide data 
59.27 	and information. By February 1 of each year, the commissioner shall provide information 
59.28 	and data on the overall capacity of licensed long-term care services, actions taken under 
59.29 	this subdivision to manage statewide long-term care services and supports resources, and 
59.30 	any recommendations for change to the legislative committees with jurisdiction over the 
59.31 	health and human services budget.

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

59.33 	Sec. 5. Minnesota Statutes 2010, section 245A.11, subdivision 7, is amended to read:
59.34 		Subd. 7.Adult foster care; variance for alternate overnight supervision. (a) The 
59.35 	commissioner may grant a variance under section 245A.04, subdivision 9, to rule parts 
60.1 	requiring a caregiver to be present in an adult foster care home during normal sleeping 
60.2 	hours to allow for alternative methods of overnight supervision. The commissioner may 
60.3 	grant the variance if the local county licensing agency recommends the variance and the 
60.4 	county recommendation includes documentation verifying that:
60.5 	(1) the county has approved the license holder's plan for alternative methods of 
60.6 	providing overnight supervision and determined the plan protects the residents' health, 
60.7 	safety, and rights;
60.8 	(2) the license holder has obtained written and signed informed consent from 
60.9 	each resident or each resident's legal representative documenting the resident's or legal 
60.10 	representative's agreement with the alternative method of overnight supervision; and
60.11 	(3) the alternative method of providing overnight supervision, which may include 
60.12 	the use of technology, is specified for each resident in the resident's: (i) individualized 
60.13 	plan of care; (ii) individual service plan under section 256B.092, subdivision 1b, if 
60.14 	required; or (iii) individual resident placement agreement under Minnesota Rules, part 
60.15 	9555.5105, subpart 19, if required.
60.16 	(b) To be eligible for a variance under paragraph (a), the adult foster care license 
60.17 	holder must not have had a licensing action conditional license issued under section 
60.18 	245A.06 or any other licensing sanction issued under section245A.07 during the prior 24 
60.19 	months based on failure to provide adequate supervision, health care services, or resident 
60.20 	safety in the adult foster care home.
60.21 	(c) A license holder requesting a variance under this subdivision to utilize 
60.22 	technology as a component of a plan for alternative overnight supervision may request 
60.23 	the commissioner's review in the absence of a county recommendation. Upon receipt of 
60.24 	such a request from a license holder, the commissioner shall review the variance request 
60.25 	with the county.

60.26 	Sec. 6. Minnesota Statutes 2010, section 245B.07, subdivision 1, is amended to read:
60.27 		Subdivision 1.Consumer data file. The license holder must maintain the following 
60.28 	information for each consumer:
60.29 	(1) identifying information that includes date of birth, medications, legal 
60.30 	representative, history, medical, and other individual-specific information, and names and 
60.31 	telephone numbers of contacts;
60.32 	(2) consumer health information, including individual medication administration 
60.33 	and monitoring information;
60.34 	(3) the consumer's individual service plan. When a consumer's case manager does 
60.35 	not provide a current individual service plan, the license holder shall make a written 
61.1 	request to the case manager to provide a copy of the individual service plan and inform 
61.2 	the consumer or the consumer's legal representative of the right to an individual service 
61.3 	plan and the right to appeal under section 256.045. In the event the case manager fails 
61.4 	to provide an individual service plan after a written request from the license holder, the 
61.5 	license holder shall not be sanctioned or penalized financially for not having a current 
61.6 	individual service plan in the consumer's data file;
61.7 	(4) copies of assessments, analyses, summaries, and recommendations;
61.8 	(5) progress review reports;
61.9 	(6) incidents involving the consumer;
61.10 	(7) reports required under section 245B.05, subdivision 7;
61.11 	(8) discharge summary, when applicable;
61.12 	(9) record of other license holders serving the consumer that includes a contact 
61.13 	person and telephone numbers, services being provided, services that require coordination 
61.14 	between two license holders, and name of staff responsible for coordination;
61.15 	(10) information about verbal aggression directed at the consumer by another 
61.16 	consumer; and
61.17 	(11) information about self-abuse.

61.18 	Sec. 7. Minnesota Statutes 2010, section 245C.04, subdivision 6, is amended to read:
61.19 		Subd. 6.Unlicensed home and community-based waiver providers of service to 
61.20 	seniors and individuals with disabilities. (a) Providers required to initiate background 
61.21 	studies under section 256B.4912 must initiate a study before the individual begins in a 
61.22 	position allowing direct contact with persons served by the provider.
61.23 	(b) The commissioner shall conduct Except as provided in paragraph (c), the 
61.24 	providers must initiate a background study annually of an individual required to be studied 
61.25 	under section 245C.03, subdivision 6.
61.26 	(c) After an initial background study under this subdivision is initiated on an 
61.27 	individual by a provider of both services licensed by the commissioner and the unlicensed 
61.28 	services under this subdivision, a repeat annual background study is not required if:
61.29 	(1) the provider maintains compliance with the requirements of section 245C.07, 
61.30 	paragraph (a), regarding one individual with one address and telephone number as the 
61.31 	person to receive sensitive background study information for the multiple programs that 
61.32 	depend on the same background study, and that the individual who is designated to receive 
61.33 	the sensitive background information is capable of determining, upon the request of the 
61.34 	commissioner, whether a background study subject is providing direct contact services 
62.1 	in one or more of the provider's programs or services and, if so, at which location or 
62.2 	locations; and
62.3 	(2) the individual who is the subject of the background study provides direct 
62.4 	contact services under the provider's licensed program for at least 40 hours per year so 
62.5 	the individual will be recognized by a probation officer or corrections agent to prompt 
62.6 	a report to the commissioner regarding criminal convictions as required under section 
62.7 	245C.05, subdivision 7.

62.8 	Sec. 8. Minnesota Statutes 2010, section 245C.05, subdivision 7, is amended to read:
62.9 		Subd. 7.Probation officer and corrections agent. (a) A probation officer or 
62.10 	corrections agent shall notify the commissioner of an individual's conviction if the 
62.11 	individual is:
62.12 	(1) has been affiliated with a program or facility regulated by the Department of 
62.13 	Human Services or Department of Health, a facility serving children or youth licensed by 
62.14 	the Department of Corrections, or any type of home care agency or provider of personal 
62.15 	care assistance services within the preceding year; and
62.16 	(2) has been convicted of a crime constituting a disqualification under section 
62.17 	245C.14.
62.18 	(b) For the purpose of this subdivision, "conviction" has the meaning given it 
62.19 	in section 609.02, subdivision 5.
62.20 	(c) The commissioner, in consultation with the commissioner of corrections, shall 
62.21 	develop forms and information necessary to implement this subdivision and shall provide 
62.22 	the forms and information to the commissioner of corrections for distribution to local 
62.23 	probation officers and corrections agents.
62.24 	(d) The commissioner shall inform individuals subject to a background study that 
62.25 	criminal convictions for disqualifying crimes will be reported to the commissioner by the 
62.26 	corrections system.
62.27 	(e) A probation officer, corrections agent, or corrections agency is not civilly or 
62.28 	criminally liable for disclosing or failing to disclose the information required by this 
62.29 	subdivision.
62.30 	(f) Upon receipt of disqualifying information, the commissioner shall provide the 
62.31 	notice required under section 245C.17, as appropriate, to agencies on record as having 
62.32 	initiated a background study or making a request for documentation of the background 
62.33 	study status of the individual.
62.34 	(g) This subdivision does not apply to family child care programs.

63.1 	Sec. 9. Minnesota Statutes 2010, section 252.27, subdivision 2a, is amended to read:
63.2 		Subd. 2a.Contribution amount. (a) The natural or adoptive parents of a minor 
63.3 	child, including a child determined eligible for medical assistance without consideration of 
63.4 	parental income, must contribute to the cost of services used by making monthly payments 
63.5 	on a sliding scale based on income, unless the child is married or has been married, 
63.6 	parental rights have been terminated, or the child's adoption is subsidized according to 
63.7 	section 259.67 or through title IV-E of the Social Security Act. The parental contribution 
63.8 	is a partial or full payment for medical services provided for diagnostic, therapeutic, 
63.9 	curing, treating, mitigating, rehabilitation, maintenance, and personal care services as 
63.10 	defined in United States Code, title 26, section 213, needed by the child with a chronic 
63.11 	illness or disability.
63.12 	(b) For households with adjusted gross income equal to or greater than 100 percent 
63.13 	of federal poverty guidelines, the parental contribution shall be computed by applying the 
63.14 	following schedule of rates to the adjusted gross income of the natural or adoptive parents:
63.15 	(1) if the adjusted gross income is equal to or greater than 100 percent of federal 
63.16 	poverty guidelines and less than 175 percent of federal poverty guidelines, the parental 
63.17 	contribution is $4 per month;
63.18 	(2) if the adjusted gross income is equal to or greater than 175 percent of federal 
63.19 	poverty guidelines and less than or equal to 545 525 percent of federal poverty guidelines, 
63.20 	the parental contribution shall be determined using a sliding fee scale established by the 
63.21 	commissioner of human services which begins at one percent of adjusted gross income at 
63.22 	175 percent of federal poverty guidelines and increases to 7.5 eight percent of adjusted 
63.23 	gross income for those with adjusted gross income up to 545 525 percent of federal 
63.24 	poverty guidelines;
63.25 	(3) if the adjusted gross income is greater than 545 525 percent of federal 
63.26 	poverty guidelines and less than 675 percent of federal poverty guidelines, the parental 
63.27 	contribution shall be 7.5 9.5 percent of adjusted gross income;
63.28 	(4) if the adjusted gross income is equal to or greater than 675 percent of federal 
63.29 	poverty guidelines and less than 975 900 percent of federal poverty guidelines, the parental 
63.30 	contribution shall be determined using a sliding fee scale established by the commissioner 
63.31 	of human services which begins at 7.5 9.5 percent of adjusted gross income at 675 percent 
63.32 	of federal poverty guidelines and increases to ten 12 percent of adjusted gross income for 
63.33 	those with adjusted gross income up to 975 900 percent of federal poverty guidelines; and
63.34 	(5) if the adjusted gross income is equal to or greater than 975 900 percent of 
63.35 	federal poverty guidelines, the parental contribution shall be 12.5 13.5 percent of adjusted 
63.36 	gross income.
64.1 	If the child lives with the parent, the annual adjusted gross income is reduced by 
64.2 	$2,400 prior to calculating the parental contribution. If the child resides in an institution 
64.3 	specified in section 256B.35, the parent is responsible for the personal needs allowance 
64.4 	specified under that section in addition to the parental contribution determined under this 
64.5 	section. The parental contribution is reduced by any amount required to be paid directly to 
64.6 	the child pursuant to a court order, but only if actually paid.
64.7 	(c) The household size to be used in determining the amount of contribution under 
64.8 	paragraph (b) includes natural and adoptive parents and their dependents, including the 
64.9 	child receiving services. Adjustments in the contribution amount due to annual changes 
64.10 	in the federal poverty guidelines shall be implemented on the first day of July following 
64.11 	publication of the changes.
64.12 	(d) For purposes of paragraph (b), "income" means the adjusted gross income of the 
64.13 	natural or adoptive parents determined according to the previous year's federal tax form, 
64.14 	except, effective retroactive to July 1, 2003, taxable capital gains to the extent the funds 
64.15 	have been used to purchase a home shall not be counted as income.
64.16 	(e) The contribution shall be explained in writing to the parents at the time eligibility 
64.17 	for services is being determined. The contribution shall be made on a monthly basis 
64.18 	effective with the first month in which the child receives services. Annually upon 
64.19 	redetermination or at termination of eligibility, if the contribution exceeded the cost of 
64.20 	services provided, the local agency or the state shall reimburse that excess amount to 
64.21 	the parents, either by direct reimbursement if the parent is no longer required to pay a 
64.22 	contribution, or by a reduction in or waiver of parental fees until the excess amount is 
64.23 	exhausted. All reimbursements must include a notice that the amount reimbursed may be 
64.24 	taxable income if the parent paid for the parent's fees through an employer's health care 
64.25 	flexible spending account under the Internal Revenue Code, section 125, and that the 
64.26 	parent is responsible for paying the taxes owed on the amount reimbursed.
64.27 	(f) The monthly contribution amount must be reviewed at least every 12 months; 
64.28 	when there is a change in household size; and when there is a loss of or gain in income 
64.29 	from one month to another in excess of ten percent. The local agency shall mail a written 
64.30 	notice 30 days in advance of the effective date of a change in the contribution amount. 
64.31 	A decrease in the contribution amount is effective in the month that the parent verifies a 
64.32 	reduction in income or change in household size.
64.33 	(g) Parents of a minor child who do not live with each other shall each pay the 
64.34 	contribution required under paragraph (a). An amount equal to the annual court-ordered 
64.35 	child support payment actually paid on behalf of the child receiving services shall be 
65.1 	deducted from the adjusted gross income of the parent making the payment prior to 
65.2 	calculating the parental contribution under paragraph (b).
65.3 	(h) The contribution under paragraph (b) shall be increased by an additional five 
65.4 	percent if the local agency determines that insurance coverage is available but not 
65.5 	obtained for the child. For purposes of this section, "available" means the insurance is a 
65.6 	benefit of employment for a family member at an annual cost of no more than five percent 
65.7 	of the family's annual income. For purposes of this section, "insurance" means health 
65.8 	and accident insurance coverage, enrollment in a nonprofit health service plan, health 
65.9 	maintenance organization, self-insured plan, or preferred provider organization.
65.10 	Parents who have more than one child receiving services shall not be required 
65.11 	to pay more than the amount for the child with the highest expenditures. There shall 
65.12 	be no resource contribution from the parents. The parent shall not be required to pay 
65.13 	a contribution in excess of the cost of the services provided to the child, not counting 
65.14 	payments made to school districts for education-related services. Notice of an increase in 
65.15 	fee payment must be given at least 30 days before the increased fee is due.
65.16 	(i) The contribution under paragraph (b) shall be reduced by $300 per fiscal year if, 
65.17 	in the 12 months prior to July 1:
65.18 	(1) the parent applied for insurance for the child;
65.19 	(2) the insurer denied insurance;
65.20 	(3) the parents submitted a complaint or appeal, in writing to the insurer, submitted 
65.21 	a complaint or appeal, in writing, to the commissioner of health or the commissioner of 
65.22 	commerce, or litigated the complaint or appeal; and
65.23 	(4) as a result of the dispute, the insurer reversed its decision and granted insurance.
65.24 	For purposes of this section, "insurance" has the meaning given in paragraph (h).
65.25 	A parent who has requested a reduction in the contribution amount under this 
65.26 	paragraph shall submit proof in the form and manner prescribed by the commissioner or 
65.27 	county agency, including, but not limited to, the insurer's denial of insurance, the written 
65.28 	letter or complaint of the parents, court documents, and the written response of the insurer 
65.29 	approving insurance. The determinations of the commissioner or county agency under this 
65.30 	paragraph are not rules subject to chapter 14.
65.31 	(j) Notwithstanding paragraph (b), for the period from July 1, 2010, to June 30, 
65.32 	2013, the parental contribution shall be computed by applying the following contribution 
65.33 	schedule to the adjusted gross income of the natural or adoptive parents:
65.34 	(1) if the adjusted gross income is equal to or greater than 100 percent of federal 
65.35 	poverty guidelines and less than 175 percent of federal poverty guidelines, the parental 
65.36 	contribution is $4 per month;
66.1 	(2) if the adjusted gross income is equal to or greater than 175 percent of federal 
66.2 	poverty guidelines and less than or equal to 525 percent of federal poverty guidelines, 
66.3 	the parental contribution shall be determined using a sliding fee scale established by the 
66.4 	commissioner of human services which begins at one percent of adjusted gross income 
66.5 	at 175 percent of federal poverty guidelines and increases to eight percent of adjusted 
66.6 	gross income for those with adjusted gross income up to 525 percent of federal poverty 
66.7 	guidelines;
66.8 	(3) if the adjusted gross income is greater than 525 percent of federal poverty 
66.9 	guidelines and less than 675 percent of federal poverty guidelines, the parental contribution 
66.10 	shall be 9.5 percent of adjusted gross income;
66.11 	(4) if the adjusted gross income is equal to or greater than 675 percent of federal 
66.12 	poverty guidelines and less than 900 percent of federal poverty guidelines, the parental 
66.13 	contribution shall be determined using a sliding fee scale established by the commissioner 
66.14 	of human services which begins at 9.5 percent of adjusted gross income at 675 percent of 
66.15 	federal poverty guidelines and increases to 12 percent of adjusted gross income for those 
66.16 	with adjusted gross income up to 900 percent of federal poverty guidelines; and
66.17 	(5) if the adjusted gross income is equal to or greater than 900 percent of federal 
66.18 	poverty guidelines, the parental contribution shall be 13.5 percent of adjusted gross 
66.19 	income. If the child lives with the parent, the annual adjusted gross income is reduced by 
66.20 	$2,400 prior to calculating the parental contribution. If the child resides in an institution 
66.21 	specified in section 256B.35, the parent is responsible for the personal needs allowance 
66.22 	specified under that section in addition to the parental contribution determined under this 
66.23 	section. The parental contribution is reduced by any amount required to be paid directly to 
66.24 	the child pursuant to a court order, but only if actually paid.

66.25 	Sec. 10. Minnesota Statutes 2011 Supplement, section 256.045, subdivision 3, is 
66.26 	amended to read:
66.27 		Subd. 3.State agency hearings. (a) State agency hearings are available for the 
66.28 	following:
66.29 	(1) any person applying for, receiving or having received public assistance, medical 
66.30 	care, or a program of social services granted by the state agency or a county agency or 
66.31 	the federal Food Stamp Act whose application for assistance is denied, not acted upon 
66.32 	with reasonable promptness, or whose assistance is suspended, reduced, terminated, or 
66.33 	claimed to have been incorrectly paid;
66.34 	(2) any patient or relative aggrieved by an order of the commissioner under section 
66.35 	252.27;
67.1 	(3) a party aggrieved by a ruling of a prepaid health plan;
67.2 	(4) except as provided under chapter 245C, any individual or facility determined by a 
67.3 	lead investigative agency to have maltreated a vulnerable adult under section 626.557 after 
67.4 	they have exercised their right to administrative reconsideration under section 626.557;
67.5 	(5) any person whose claim for foster care payment according to a placement of the 
67.6 	child resulting from a child protection assessment under section 626.556 is denied or not 
67.7 	acted upon with reasonable promptness, regardless of funding source;
67.8 	(6) any person to whom a right of appeal according to this section is given by other 
67.9 	provision of law;
67.10 	(7) an applicant aggrieved by an adverse decision to an application for a hardship 
67.11 	waiver under section 256B.15;
67.12 	(8) an applicant aggrieved by an adverse decision to an application or redetermination 
67.13 	for a Medicare Part D prescription drug subsidy under section 256B.04, subdivision 4a;
67.14 	(9) except as provided under chapter 245A, an individual or facility determined 
67.15 	to have maltreated a minor under section 626.556, after the individual or facility has 
67.16 	exercised the right to administrative reconsideration under section 626.556;
67.17 	(10) except as provided under chapter 245C, an individual disqualified under 
67.18 	sections 245C.14 and 245C.15, following a reconsideration decision issued under section 
67.19 	245C.23, on the basis of serious or recurring maltreatment; a preponderance of the 
67.20 	evidence that the individual has committed an act or acts that meet the definition of any of 
67.21 	the crimes listed in section 245C.15, subdivisions 1 to 4; or for failing to make reports 
67.22 	required under section 626.556, subdivision 3, or 626.557, subdivision 3. Hearings 
67.23 	regarding a maltreatment determination under clause (4) or (9) and a disqualification under 
67.24 	this clause in which the basis for a disqualification is serious or recurring maltreatment, 
67.25 	shall be consolidated into a single fair hearing. In such cases, the scope of review by 
67.26 	the human services referee shall include both the maltreatment determination and the 
67.27 	disqualification. The failure to exercise the right to an administrative reconsideration shall 
67.28 	not be a bar to a hearing under this section if federal law provides an individual the right to 
67.29 	a hearing to dispute a finding of maltreatment. Individuals and organizations specified in 
67.30 	this section may contest the specified action, decision, or final disposition before the state 
67.31 	agency by submitting a written request for a hearing to the state agency within 30 days 
67.32 	after receiving written notice of the action, decision, or final disposition, or within 90 days 
67.33 	of such written notice if the applicant, recipient, patient, or relative shows good cause why 
67.34 	the request was not submitted within the 30-day time limit; or
67.35 	(11) any person with an outstanding debt resulting from receipt of public assistance, 
67.36 	medical care, or the federal Food Stamp Act who is contesting a setoff claim by the 
68.1 	Department of Human Services or a county agency. The scope of the appeal is the validity 
68.2 	of the claimant agency's intention to request a setoff of a refund under chapter 270A 
68.3 	against the debt.
68.4 	(b) The hearing for an individual or facility under paragraph (a), clause (4), (9), or 
68.5 	(10), is the only administrative appeal to the final agency determination specifically, 
68.6 	including a challenge to the accuracy and completeness of data under section 13.04. 
68.7 	Hearings requested under paragraph (a), clause (4), apply only to incidents of maltreatment 
68.8 	that occur on or after October 1, 1995. Hearings requested by nursing assistants in nursing 
68.9 	homes alleged to have maltreated a resident prior to October 1, 1995, shall be held as a 
68.10 	contested case proceeding under the provisions of chapter 14. Hearings requested under 
68.11 	paragraph (a), clause (9), apply only to incidents of maltreatment that occur on or after 
68.12 	July 1, 1997. A hearing for an individual or facility under paragraph (a), clause (9), is 
68.13 	only available when there is no juvenile court or adult criminal action pending. If such 
68.14 	action is filed in either court while an administrative review is pending, the administrative 
68.15 	review must be suspended until the judicial actions are completed. If the juvenile court 
68.16 	action or criminal charge is dismissed or the criminal action overturned, the matter may be 
68.17 	considered in an administrative hearing.
68.18 	(c) For purposes of this section, bargaining unit grievance procedures are not an 
68.19 	administrative appeal.
68.20 	(d) The scope of hearings involving claims to foster care payments under paragraph 
68.21 	(a), clause (5), shall be limited to the issue of whether the county is legally responsible 
68.22 	for a child's placement under court order or voluntary placement agreement and, if so, 
68.23 	the correct amount of foster care payment to be made on the child's behalf and shall not 
68.24 	include review of the propriety of the county's child protection determination or child 
68.25 	placement decision.
68.26 	(e) The scope of hearings involving appeals related to the reduction, suspension, 
68.27 	denial, or termination of personal care assistance services under section 256B.0659 shall 
68.28 	be limited to the specific issues under written appeal.
68.29 	(f) A vendor of medical care as defined in section 256B.02, subdivision 7, or a 
68.30 	vendor under contract with a county agency to provide social services is not a party and 
68.31 	may not request a hearing under this section, except if assisting a recipient as provided in 
68.32 	subdivision 4.
68.33 	(f) (g) An applicant or recipient is not entitled to receive social services beyond the 
68.34 	services prescribed under chapter 256M or other social services the person is eligible 
68.35 	for under state law.
69.1 	(g) (h) The commissioner may summarily affirm the county or state agency's 
69.2 	proposed action without a hearing when the sole issue is an automatic change due to 
69.3 	a change in state or federal law.

69.4 	EFFECTIVE DATE. This section is effective for all notices of action dated on or 
69.5 	after July 1, 2012.

69.6 	Sec. 11. Minnesota Statutes 2010, section 256B.056, subdivision 1a, is amended to 
69.7 	read:
69.8 		Subd. 1a.Income and assets generally. Unless specifically required by state 
69.9 	law or rule or federal law or regulation, the methodologies used in counting income 
69.10 	and assets to determine eligibility for medical assistance for persons whose eligibility 
69.11 	category is based on blindness, disability, or age of 65 or more years, the methodologies 
69.12 	for the supplemental security income program shall be used, except as provided under 
69.13 	subdivision 3, paragraph (a), clause (6). Increases in benefits under title II of the Social 
69.14 	Security Act shall not be counted as income for purposes of this subdivision until July 1 of 
69.15 	each year. Effective upon federal approval, for children eligible under section 256B.055, 
69.16 	subdivision 12, or for home and community-based waiver services whose eligibility 
69.17 	for medical assistance is determined without regard to parental income, child support 
69.18 	payments, including any payments made by an obligor in satisfaction of or in addition 
69.19 	to a temporary or permanent order for child support, and Social Security payments are 
69.20 	not counted as income. For families and children, which includes all other eligibility 
69.21 	categories, the methodologies under the state's AFDC plan in effect as of July 16, 1996, as 
69.22 	required by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 
69.23 	(PRWORA), Public Law 104-193, shall be used, except that effective October 1, 2003, the 
69.24 	earned income disregards and deductions are limited to those in subdivision 1c. For these 
69.25 	purposes, a "methodology" does not include an asset or income standard, or accounting 
69.26 	method, or method of determining effective dates.

69.27 	EFFECTIVE DATE. This section is effective April 1, 2012.

69.28 	Sec. 12. Minnesota Statutes 2011 Supplement, section 256B.056, subdivision 3, 
69.29 	is amended to read:
69.30 		Subd. 3.Asset limitations for individuals and families. (a) To be eligible for 
69.31 	medical assistance, a person must not individually own more than $3,000 in assets, or if a 
69.32 	member of a household with two family members, husband and wife, or parent and child, 
69.33 	the household must not own more than $6,000 in assets, plus $200 for each additional 
70.1 	legal dependent. In addition to these maximum amounts, an eligible individual or family 
70.2 	may accrue interest on these amounts, but they must be reduced to the maximum at the 
70.3 	time of an eligibility redetermination. The accumulation of the clothing and personal 
70.4 	needs allowance according to section 256B.35 must also be reduced to the maximum at 
70.5 	the time of the eligibility redetermination. The value of assets that are not considered in 
70.6 	determining eligibility for medical assistance is the value of those assets excluded under 
70.7 	the supplemental security income program for aged, blind, and disabled persons, with 
70.8 	the following exceptions:
70.9 	(1) household goods and personal effects are not considered;
70.10 	(2) capital and operating assets of a trade or business that the local agency determines 
70.11 	are necessary to the person's ability to earn an income are not considered;
70.12 	(3) motor vehicles are excluded to the same extent excluded by the supplemental 
70.13 	security income program;
70.14 	(4) assets designated as burial expenses are excluded to the same extent excluded by 
70.15 	the supplemental security income program. Burial expenses funded by annuity contracts 
70.16 	or life insurance policies must irrevocably designate the individual's estate as contingent 
70.17 	beneficiary to the extent proceeds are not used for payment of selected burial expenses; and
70.18 	(5) for a person who no longer qualifies as an employed person with a disability due 
70.19 	to loss of earnings, assets allowed while eligible for medical assistance under section 
70.20 	256B.057, subdivision 9, are not considered for 12 months, beginning with the first month 
70.21 	of ineligibility as an employed person with a disability, to the extent that the person's total 
70.22 	assets remain within the allowed limits of section 256B.057, subdivision 9, paragraph 
70.23 	(d).; and
70.24 	(6) when a person enrolled in medical assistance under section 256B.057, subdivision 
70.25 	9, is age 65 or older and has been enrolled during each of the 24 consecutive months 
70.26 	before the person's 65th birthday, the assets owned by the person and the person's spouse 
70.27 	must be disregarded, up to the limits of section 256B.057, subdivision 9, paragraph (d), 
70.28 	when determining eligibility for medical assistance under section 256B.055, subdivision 
70.29 	7. The income of a spouse of a person enrolled in medical assistance under section 
70.30 	256B.057, subdivision 9, during each of the 24 consecutive months before the person's 
70.31 	65th birthday must be disregarded when determining eligibility for medical assistance 
70.32 	under section 256B.055, subdivision 7. Persons eligible under this clause are not subject to 
70.33 	the provisions in section 256B.059. A person whose 65th birthday occurs in 2012 or 2013 
70.34 	is required to have qualified for medical assistance under section 256B.057, subdivision 9, 
70.35 	prior to age 65 for at least 20 months in the 24 months prior to reaching age 65.
71.1 	(b) No asset limit shall apply to persons eligible under section 256B.055, subdivision 
71.2 	15.

71.3 	EFFECTIVE DATE. This section is effective April 1, 2012.

71.4 	Sec. 13. Minnesota Statutes 2011 Supplement, section 256B.057, subdivision 9, 
71.5 	is amended to read:
71.6 		Subd. 9.Employed persons with disabilities. (a) Medical assistance may be paid 
71.7 	for a person who is employed and who:
71.8 	(1) but for excess earnings or assets, meets the definition of disabled under the 
71.9 	Supplemental Security Income program;
71.10 	(2) is at least 16 but less than 65 years of age;
71.11 	(3) meets the asset limits in paragraph (d); and
71.12 	(4) (3) pays a premium and other obligations under paragraph (e).
71.13 	(b) For purposes of eligibility, there is a $65 earned income disregard. To be eligible 
71.14 	for medical assistance under this subdivision, a person must have more than $65 of earned 
71.15 	income. Earned income must have Medicare, Social Security, and applicable state and 
71.16 	federal taxes withheld. The person must document earned income tax withholding. Any 
71.17 	spousal income or assets shall be disregarded for purposes of eligibility and premium 
71.18 	determinations.
71.19 	(c) After the month of enrollment, a person enrolled in medical assistance under 
71.20 	this subdivision who:
71.21 	(1) is temporarily unable to work and without receipt of earned income due to a 
71.22 	medical condition, as verified by a physician; or
71.23 	(2) loses employment for reasons not attributable to the enrollee, and is without 
71.24 	receipt of earned income may retain eligibility for up to four consecutive months after the 
71.25 	month of job loss. To receive a four-month extension, enrollees must verify the medical 
71.26 	condition or provide notification of job loss. All other eligibility requirements must be met 
71.27 	and the enrollee must pay all calculated premium costs for continued eligibility.
71.28 	(d) For purposes of determining eligibility under this subdivision, a person's assets 
71.29 	must not exceed $20,000, excluding:
71.30 	(1) all assets excluded under section 256B.056;
71.31 	(2) retirement accounts, including individual accounts, 401(k) plans, 403(b) plans, 
71.32 	Keogh plans, and pension plans;
71.33 	(3) medical expense accounts set up through the person's employer; and
71.34 	(4) spousal assets, including spouse's share of jointly held assets.
72.1 	(e) All enrollees must pay a premium to be eligible for medical assistance under this 
72.2 	subdivision, except as provided under section 256.01, subdivision 18b.
72.3 	(1) An enrollee must pay the greater of a $65 premium or the premium calculated 
72.4 	based on the person's gross earned and unearned income and the applicable family size 
72.5 	using a sliding fee scale established by the commissioner, which begins at one percent of 
72.6 	income at 100 percent of the federal poverty guidelines and increases to 7.5 percent of 
72.7 	income for those with incomes at or above 300 percent of the federal poverty guidelines.
72.8 	(2) Annual adjustments in the premium schedule based upon changes in the federal 
72.9 	poverty guidelines shall be effective for premiums due in July of each year.
72.10 	(3) All enrollees who receive unearned income must pay five percent of unearned 
72.11 	income in addition to the premium amount, except as provided under section 256.01, 
72.12 	subdivision 18b.
72.13 	(4) Increases in benefits under title II of the Social Security Act shall not be counted 
72.14 	as income for purposes of this subdivision until July 1 of each year.
72.15 	(f) A person's eligibility and premium shall be determined by the local county 
72.16 	agency. Premiums must be paid to the commissioner. All premiums are dedicated to 
72.17 	the commissioner.
72.18 	(g) Any required premium shall be determined at application and redetermined at 
72.19 	the enrollee's six-month income review or when a change in income or household size is 
72.20 	reported. Enrollees must report any change in income or household size within ten days 
72.21 	of when the change occurs. A decreased premium resulting from a reported change in 
72.22 	income or household size shall be effective the first day of the next available billing month 
72.23 	after the change is reported. Except for changes occurring from annual cost-of-living 
72.24 	increases, a change resulting in an increased premium shall not affect the premium amount 
72.25 	until the next six-month review.
72.26 	(h) Premium payment is due upon notification from the commissioner of the 
72.27 	premium amount required. Premiums may be paid in installments at the discretion of 
72.28 	the commissioner.
72.29 	(i) Nonpayment of the premium shall result in denial or termination of medical 
72.30 	assistance unless the person demonstrates good cause for nonpayment. Good cause exists 
72.31 	if the requirements specified in Minnesota Rules, part 9506.0040, subpart 7, items B to 
72.32 	D, are met. Except when an installment agreement is accepted by the commissioner, 
72.33 	all persons disenrolled for nonpayment of a premium must pay any past due premiums 
72.34 	as well as current premiums due prior to being reenrolled. Nonpayment shall include 
72.35 	payment with a returned, refused, or dishonored instrument. The commissioner may 
73.1 	require a guaranteed form of payment as the only means to replace a returned, refused, 
73.2 	or dishonored instrument.
73.3 	(j) The commissioner shall notify enrollees annually beginning at least 24 months 
73.4 	before the person's 65th birthday of the medical assistance eligibility rules affecting 
73.5 	income, assets, and treatment of a spouse's income and assets that will be applied upon 
73.6 	reaching age 65.
73.7 	(k) For enrollees whose income does not exceed 200 percent of the federal poverty 
73.8 	guidelines and who are also enrolled in Medicare, the commissioner shall reimburse 
73.9 	the enrollee for Medicare part B premiums under section 256B.0625, subdivision 15, 
73.10 	paragraph (a).

73.11 	EFFECTIVE DATE. This section is effective April 1, 2012.

73.12 	Sec. 14. Minnesota Statutes 2010, section 256B.0659, is amended by adding a 
73.13 	subdivision to read:
73.14 		Subd. 31.Appeals. (a) A recipient who is adversely affected by the reduction, 
73.15 	suspension, denial, or termination of services under this section may appeal the decision 
73.16 	according to section 256.045. The notice of the reduction, suspension, denial, or 
73.17 	termination of services from the lead agency to the applicant or recipient must be made 
73.18 	in plain language and must include a form for written appeal. The commissioner may 
73.19 	provide lead agencies with a model form for written appeal. The appeal must be in 
73.20 	writing and identify the specific issues the recipient would like to have considered in the 
73.21 	appeal hearing and a summary of the basis, with supporting professional documentation 
73.22 	if available, for contesting the decision.
73.23 	(b) If a recipient has a change in condition or new information after the date of 
73.24 	the assessment, temporary services may be authorized according to section 256B.0652, 
73.25 	subdivision 9, until a new assessment is completed.

73.26 	Sec. 15. Minnesota Statutes 2011 Supplement, section 256B.0911, subdivision 3a, 
73.27 	is amended to read:
73.28 		Subd. 3a.Assessment and support planning. (a) Persons requesting assessment, 
73.29 	services planning, or other assistance intended to support community-based living, 
73.30 	including persons who need assessment in order to determine waiver or alternative care 
73.31 	program eligibility, must be visited by a long-term care consultation team within 15 
73.32 	calendar days after the date on which an assessment was requested or recommended. After 
73.33 	January 1, 2011, these requirements also apply to personal care assistance services, private 
74.1 	duty nursing, and home health agency services, on timelines established in subdivision 5. 
74.2 	Face-to-face assessments must be conducted according to paragraphs (b) to (i).
74.3 	(b) The county may utilize a team of either the social worker or public health nurse, 
74.4 	or both. After January 1, 2011, lead agencies shall use certified assessors to conduct the 
74.5 	assessment in a face-to-face interview. The consultation team members must confer 
74.6 	regarding the most appropriate care for each individual screened or assessed.
74.7 	(c) The assessment must be comprehensive and include a person-centered 
74.8 	assessment of the health, psychological, functional, environmental, and social needs of 
74.9 	referred individuals and provide information necessary to develop a support plan that 
74.10 	meets the consumers needs, using an assessment form provided by the commissioner.
74.11 	(d) The assessment must be conducted in a face-to-face interview with the person 
74.12 	being assessed and the person's legal representative, as required by legally executed 
74.13 	documents, and other individuals as requested by the person, who can provide information 
74.14 	on the needs, strengths, and preferences of the person necessary to develop a support plan 
74.15 	that ensures the person's health and safety, but who is not a provider of service or has any 
74.16 	financial interest in the provision of services. For persons who are to be assessed for 
74.17 	elderly waiver customized living services under section 256B.0915, with the permission 
74.18 	of the person being assessed or the person's designated or legal representative, the client's 
74.19 	current or proposed provider of services may submit a copy of the provider's nursing 
74.20 	assessment or written report outlining their recommendations regarding the client's care 
74.21 	needs. The person conducting the assessment will notify the provider of the date by 
74.22 	which this information is to be submitted. This information shall be provided to the 
74.23 	person conducting the assessment and must be considered prior to the finalization of 
74.24 	the assessment.
74.25 	(e) The person, or the person's legal representative, must be provided with written 
74.26 	recommendations for community-based services, including consumer-directed options, 
74.27 	or institutional care that include documentation that the most cost-effective alternatives 
74.28 	available were offered to the individual, and alternatives to residential settings, including, 
74.29 	but not limited to, foster care settings that are not the primary residence of the license 
74.30 	holder. For purposes of this requirement, "cost-effective alternatives" means community 
74.31 	services and living arrangements that cost the same as or less than institutional care.
74.32 	(f) If the person chooses to use community-based services, the person or the person's 
74.33 	legal representative must be provided with a written community support plan, regardless 
74.34 	of whether the individual is eligible for Minnesota health care programs. A person may 
74.35 	request assistance in identifying community supports without participating in a complete 
74.36 	assessment. Upon a request for assistance identifying community support, the person must 
75.1 	be transferred or referred to the services available under sections 256.975, subdivision 7, 
75.2 	and 256.01, subdivision 24, for telephone assistance and follow up.
75.3 	(g) The person has the right to make the final decision between institutional 
75.4 	placement and community placement after the recommendations have been provided, 
75.5 	except as provided in subdivision 4a, paragraph (c).
75.6 	(h) The team must give the person receiving assessment or support planning, or 
75.7 	the person's legal representative, materials, and forms supplied by the commissioner 
75.8 	containing the following information:
75.9 	(1) the need for and purpose of preadmission screening if the person selects nursing 
75.10 	facility placement;
75.11 	(2) the role of the long-term care consultation assessment and support planning in 
75.12 	waiver and alternative care program eligibility determination;
75.13 	(3) information about Minnesota health care programs;
75.14 	(4) the person's freedom to accept or reject the recommendations of the team;
75.15 	(5) the person's right to confidentiality under the Minnesota Government Data 
75.16 	Practices Act, chapter 13;
75.17 	(6) the long-term care consultant's decision regarding the person's need for 
75.18 	institutional level of care as determined under criteria established in section 144.0724, 
75.19 	subdivision 11, or 256B.092; and
75.20 	(7) the person's right to appeal the decision regarding the need for nursing facility 
75.21 	level of care or the county's final decisions regarding public programs eligibility according 
75.22 	to section 256.045, subdivision 3.
75.23 	(i) Face-to-face assessment completed as part of eligibility determination for 
75.24 	the alternative care, elderly waiver, community alternatives for disabled individuals, 
75.25 	community alternative care, and traumatic brain injury waiver programs under sections 
75.26 	256B.0915, 256B.0917, and 256B.49 is valid to establish service eligibility for no more 
75.27 	than 60 calendar days after the date of assessment. The effective eligibility start date 
75.28 	for these programs can never be prior to the date of assessment. If an assessment was 
75.29 	completed more than 60 days before the effective waiver or alternative care program 
75.30 	eligibility start date, assessment and support plan information must be updated in a 
75.31 	face-to-face visit and documented in the department's Medicaid Management Information 
75.32 	System (MMIS). The effective date of program eligibility in this case cannot be prior to 
75.33 	the date the updated assessment is completed.

75.34 	Sec. 16. Minnesota Statutes 2011 Supplement, section 256B.0911, subdivision 3c, 
75.35 	is amended to read:
76.1 		Subd. 3c.Consultation for housing with services. (a) The purpose of long-term 
76.2 	care consultation for registered housing with services is to support persons with current or 
76.3 	anticipated long-term care needs in making informed choices among options that include 
76.4 	the most cost-effective and least restrictive settings. Prospective residents maintain the 
76.5 	right to choose housing with services or assisted living if that option is their preference.
76.6 	(b) Registered housing with services establishments shall inform all prospective 
76.7 	residents of the availability of long-term care consultation and the need to receive and 
76.8 	verify the consultation prior to signing a lease or contract. Long-term care consultation 
76.9 	for registered housing with services is provided as determined by the commissioner of 
76.10 	human services. The service is delivered under a partnership between lead agencies as 
76.11 	defined in subdivision 1a, paragraph (d), and the Area Agencies on Aging, and is a point 
76.12 	of entry to a combination of telephone-based long-term care options counseling provided 
76.13 	by Senior LinkAge Line and in-person long-term care consultation provided by lead 
76.14 	agencies. The point of entry service must be provided within five working days of the 
76.15 	request of the prospective resident as follows:
76.16 	(1) the consultation shall be performed in a manner that provides objective and 
76.17 	complete information;
76.18 	(2) the consultation must include a review of the prospective resident's reasons for 
76.19 	considering housing with services, the prospective resident's personal goals, a discussion 
76.20 	of the prospective resident's immediate and projected long-term care needs, and alternative 
76.21 	community services or housing with services settings that may meet the prospective 
76.22 	resident's needs;
76.23 	(3) the prospective resident shall be informed of the availability of a face-to-face 
76.24 	visit at no charge to the prospective resident to assist the prospective resident in assessment 
76.25 	and planning to meet the prospective resident's long-term care needs; and
76.26 	(4) verification of counseling shall be generated and provided to the prospective 
76.27 	resident by Senior LinkAge Line upon completion of the telephone-based counseling.
76.28 	(c) Housing with services establishments registered under chapter 144D shall:
76.29 	(1) inform all prospective residents of the availability of and contact information for 
76.30 	consultation services under this subdivision;
76.31 	(2) except for individuals seeking lease-only arrangements in subsidized housing 
76.32 	settings, receive a copy of the verification of counseling prior to executing a lease or 
76.33 	service contract with the prospective resident, and prior to executing a service contract 
76.34 	with individuals who have previously entered into lease-only arrangements; and
76.35 	(3) retain a copy of the verification of counseling as part of the resident's file.
77.1 	(d) Exemptions from the consultation requirement under paragraph (b) and 
77.2 	emergency admissions to registered housing with services establishments prior to 
77.3 	consultation under paragraph (b) are permitted according to policies established by the 
77.4 	commissioner.
77.5 	(e) Prospective residents who have used financial planning services and created a 
77.6 	long-term care plan in the 12 months prior to signing a lease or contract with a registered 
77.7 	housing with services or assisted living establishment are exempt from the long-term care 
77.8 	consultation requirements under this subdivision. Housing with services establishments 
77.9 	registered under chapter 144D are exempt from the requirements of paragraph (c), 
77.10 	clauses (2) and (3), for prospective residents who are exempt from the requirements 
77.11 	of this subdivision.

77.12 	Sec. 17. Minnesota Statutes 2011 Supplement, section 256B.0915, subdivision 3e, 
77.13 	is amended to read:
77.14 		Subd. 3e.Customized living service rate. (a) Payment for customized living 
77.15 	services shall be a monthly rate authorized by the lead agency within the parameters 
77.16 	established by the commissioner. The payment agreement must delineate the amount of 
77.17 	each component service included in the recipient's customized living service plan. The 
77.18 	lead agency, with input from the provider of customized living services, shall ensure that 
77.19 	there is a documented need within the parameters established by the commissioner for all 
77.20 	component customized living services authorized.
77.21 	(b) The payment rate must be based on the amount of component services to be 
77.22 	provided utilizing component rates established by the commissioner. Counties and tribes 
77.23 	shall use tools issued by the commissioner to develop and document customized living 
77.24 	service plans and rates.
77.25 	(c) Component service rates must not exceed payment rates for comparable elderly 
77.26 	waiver or medical assistance services and must reflect economies of scale. Customized 
77.27 	living services must not include rent or raw food costs.
77.28 	(d) With the exception of individuals described in subdivision 3a, paragraph (b), the 
77.29 	individualized monthly authorized payment for the customized living service plan shall 
77.30 	not exceed 50 percent of the greater of either the statewide or any of the geographic 
77.31 	groups' weighted average monthly nursing facility rate of the case mix resident class 
77.32 	to which the elderly waiver eligible client would be assigned under Minnesota Rules, 
77.33 	parts 9549.0050 to 9549.0059, less the maintenance needs allowance as described 
77.34 	in subdivision 1d, paragraph (a), until the July 1 of the state fiscal year in which the 
77.35 	resident assessment system as described in section 256B.438 for nursing home rate 
78.1 	determination is implemented. Effective on July 1 of the state fiscal year in which 
78.2 	the resident assessment system as described in section 256B.438 for nursing home 
78.3 	rate determination is implemented and July 1 of each subsequent state fiscal year, the 
78.4 	individualized monthly authorized payment for the services described in this clause shall 
78.5 	not exceed the limit which was in effect on June 30 of the previous state fiscal year 
78.6 	updated annually based on legislatively adopted changes to all service rate maximums for 
78.7 	home and community-based service providers.
78.8 	(e) Effective July 1, 2011, the individualized monthly payment for the customized 
78.9 	living service plan for individuals described in subdivision 3a, paragraph (b), must be the 
78.10 	monthly authorized payment limit for customized living for individuals classified as case 
78.11 	mix A, reduced by 25 percent. This rate limit must be applied to all new participants 
78.12 	enrolled in the program on or after July 1, 2011, who meet the criteria described in 
78.13 	subdivision 3a, paragraph (b). This monthly limit also applies to all other participants who 
78.14 	meet the criteria described in subdivision 3a, paragraph (b), at reassessment.
78.15 	(f) Customized living services are delivered by a provider licensed by the 
78.16 	Department of Health as a class A or class F home care provider and provided in a 
78.17 	building that is registered as a housing with services establishment under chapter 144D. 
78.18 	All customized living service participants must have a private bedroom unless they choose 
78.19 	to share a bedroom with no more than one other family member, except for participants 
78.20 	who live in a customized living setting that limits participants to two people per unit. 
78.21 	Licensed home care providers are subject to section 256B.0651, subdivision 14.
78.22 	(g) A provider may not bill or otherwise charge an elderly waiver participant or their 
78.23 	family for additional units of any allowable component service beyond those available 
78.24 	under the service rate limits described in paragraph (d), nor for additional units of any 
78.25 	allowable component service beyond those approved in the service plan by the lead agency.

78.26 	Sec. 18. Minnesota Statutes 2010, section 256B.0915, subdivision 3g, is amended to 
78.27 	read:
78.28 		Subd. 3g.Service rate limits; state assumption of costs. (a) To improve access 
78.29 	to community services and eliminate payment disparities between the alternative care 
78.30 	program and the elderly waiver, the commissioner shall establish statewide maximum 
78.31 	service rate limits and eliminate lead agency-specific service rate limits.
78.32 	(b) Effective July 1, 2001, for service rate limits, except those described or defined in 
78.33 	subdivisions 3d and 3e, the rate limit for each service shall be the greater of the alternative 
78.34 	care statewide maximum rate or the elderly waiver statewide maximum rate.
79.1 	(c) Lead agencies may negotiate individual service rates with vendors for actual 
79.2 	costs up to the statewide maximum service rate limit.
79.3 	(d) Notwithstanding the requirements of paragraphs (a) through (c), or the 
79.4 	requirements in subdivisions 3e and 3h, and as part of waiver reform proposals 
79.5 	developed under authority in section 256B.021, subdivision 4, paragraphs (f) and (g), 
79.6 	the commissioner may develop proposals for alternative or enhanced service payment 
79.7 	rate systems for purposes of ensuring reasonable and adequate access to home and 
79.8 	community-based services for elderly waiver participants throughout the state based 
79.9 	on criteria established to designate areas as critical access home and community-based 
79.10 	service areas.  These proposals, to be submitted to the legislature no later than February 
79.11 	15, 2013, must be based on an evaluation of statewide capacity and the determination of 
79.12 	critical access home and community-based services areas. Alternative or enhanced service 
79.13 	payment rate systems will be limited to providers delivering services to individuals 
79.14 	residing in communities, counties, or groups of counties designated as critical access 
79.15 	areas for home and community-based services. The commissioner shall consult with 
79.16 	stakeholders who authorize and provide elderly waiver services as well as with consumer 
79.17 	advocates and the ombudsman for long-term care.
79.18 	(1) Alternative or enhanced payment rate systems may be developed in designated 
79.19 	areas for elderly waiver services providers that may include:
79.20 	(i) licensed home care providers qualified to enroll in Minnesota health care 
79.21 	programs that are delivering services in housing with services establishments in critical 
79.22 	access areas of the state;
79.23 	(ii) providers as described in subdivision 3h, paragraph (g). Any calculation of 
79.24 	an enhanced or alternative service rate under this clause or clause (i), must be limited 
79.25 	to services only and cannot include rent, utilities, raw food, or nonallowable service 
79.26 	component costs or charges; and
79.27 	(iii) other nonresidential elderly waiver services.
79.28 	(2) In order to develop critical access criteria and alternative or enhanced payment 
79.29 	systems for critical access home and community-based services areas, the commissioner 
79.30 	shall utilize information available from existing sources whenever possible.
79.31 	(3)  Providers applying for alternative or enhanced rates in critical access areas may 
79.32 	be required to provide additional information as recommended by the commissioner 
79.33 	and approved by the legislature.

79.34 	Sec. 19. Minnesota Statutes 2011 Supplement, section 256B.0915, subdivision 3h, 
79.35 	is amended to read:
80.1 		Subd. 3h.Service rate limits; 24-hour customized living services. (a) The 
80.2 	payment rate for 24-hour customized living services is a monthly rate authorized by the 
80.3 	lead agency within the parameters established by the commissioner of human services. 
80.4 	The payment agreement must delineate the amount of each component service included 
80.5 	in each recipient's customized living service plan. The lead agency, with input from 
80.6 	the provider of customized living services, shall ensure that there is a documented need 
80.7 	within the parameters established by the commissioner for all component customized 
80.8 	living services authorized. The lead agency shall not authorize 24-hour customized living 
80.9 	services unless there is a documented need for 24-hour supervision.
80.10 	(b) For purposes of this section, "24-hour supervision" means that the recipient 
80.11 	requires assistance due to needs related to one or more of the following:
80.12 	(1) intermittent assistance with toileting, positioning, or transferring;
80.13 	(2) cognitive or behavioral issues;
80.14 	(3) a medical condition that requires clinical monitoring; or
80.15 	(4) for all new participants enrolled in the program on or after July 1, 2011, and 
80.16 	all other participants at their first reassessment after July 1, 2011, dependency in at 
80.17 	least three of the following activities of daily living as determined by assessment under 
80.18 	section 256B.0911: bathing; dressing; grooming; walking; or eating when the dependency 
80.19 	score in eating is three or greater; and needs medication management and at least 50 
80.20 	hours of service per month. The lead agency shall ensure that the frequency and mode 
80.21 	of supervision of the recipient and the qualifications of staff providing supervision are 
80.22 	described and meet the needs of the recipient.
80.23 	(c) The payment rate for 24-hour customized living services must be based on the 
80.24 	amount of component services to be provided utilizing component rates established by the 
80.25 	commissioner. Counties and tribes will use tools issued by the commissioner to develop 
80.26 	and document customized living plans and authorize rates.
80.27 	(d) Component service rates must not exceed payment rates for comparable elderly 
80.28 	waiver or medical assistance services and must reflect economies of scale.
80.29 	(e) The individually authorized 24-hour customized living payments, in combination 
80.30 	with the payment for other elderly waiver services, including case management, must not 
80.31 	exceed the recipient's community budget cap specified in subdivision 3a. Customized 
80.32 	living services must not include rent or raw food costs.
80.33 	(f) The individually authorized 24-hour customized living payment rates shall not 
80.34 	exceed the 95 percentile of statewide monthly authorizations for 24-hour customized 
80.35 	living services in effect and in the Medicaid management information systems on March 
80.36 	31, 2009, for each case mix resident class under Minnesota Rules, parts 9549.0050 
81.1 	to 9549.0059, to which elderly waiver service clients are assigned. When there are 
81.2 	fewer than 50 authorizations in effect in the case mix resident class, the commissioner 
81.3 	shall multiply the calculated service payment rate maximum for the A classification by 
81.4 	the standard weight for that classification under Minnesota Rules, parts 9549.0050 to 
81.5 	9549.0059, to determine the applicable payment rate maximum. Service payment rate 
81.6 	maximums shall be updated annually based on legislatively adopted changes to all service 
81.7 	rates for home and community-based service providers.
81.8 	(g) Notwithstanding the requirements of paragraphs (d) and (f), the commissioner 
81.9 	may establish alternative payment rate systems for 24-hour customized living services in 
81.10 	housing with services establishments which are freestanding buildings with a capacity of 
81.11 	16 or fewer, by applying a single hourly rate for covered component services provided 
81.12 	in either:
81.13 	(1) licensed corporate adult foster homes; or
81.14 	(2) specialized dementia care units which meet the requirements of section 144D.065 
81.15 	and in which:
81.16 	(i) each resident is offered the option of having their own apartment; or
81.17 	(ii) the units are licensed as board and lodge establishments with maximum capacity 
81.18 	of eight residents, and which meet the requirements of Minnesota Rules, part 9555.6205, 
81.19 	subparts 1, 2, 3, and 4, item A.
81.20 	(h) 24-hour customized living services are delivered by a provider licensed by 
81.21 	the Department of Health as a class A or class F home care provider and provided in a 
81.22 	building that is registered as a housing with services establishment under chapter 144D. 
81.23 	All customized living service participants must have a private bedroom unless they choose 
81.24 	to share a bedroom with no more than one other family member, except for participants 
81.25 	who live in a customized living setting that limits participants to two people per unit. 
81.26 	Licensed home care providers are subject to section 256B.0651, subdivision 14.
81.27 	(h) (i) A provider may not bill or otherwise charge an elderly waiver participant 
81.28 	or their family for additional units of any allowable component service beyond those 
81.29 	available under the service rate limits described in paragraph (e), nor for additional 
81.30 	units of any allowable component service beyond those approved in the service plan 
81.31 	by the lead agency.

81.32 	Sec. 20. Minnesota Statutes 2010, section 256B.092, subdivision 1b, is amended to 
81.33 	read:
81.34 		Subd. 1b.Individual service plan. (a) The individual service plan must:
82.1 	(1) include the results of the assessment information on the person's need for service, 
82.2 	including identification of service needs that will be or that are met by the person's 
82.3 	relatives, friends, and others, as well as community services used by the general public;
82.4 	(2) identify the person's preferences for services as stated by the person, the person's 
82.5 	legal guardian or conservator, or the parent if the person is a minor;
82.6 	(3) identify long- and short-range goals for the person;
82.7 	(4) identify specific services and the amount and frequency of the services to be 
82.8 	provided to the person based on assessed needs, preferences, and available resources. 
82.9 	The individual service plan shall also specify other services the person needs that are 
82.10 	not available;
82.11 	(5) identify the need for an individual program plan to be developed by the provider 
82.12 	according to the respective state and federal licensing and certification standards, and 
82.13 	additional assessments to be completed or arranged by the provider after service initiation;
82.14 	(6) identify provider responsibilities to implement and make recommendations for 
82.15 	modification to the individual service plan;
82.16 	(7) include notice of the right to request a conciliation conference or a hearing 
82.17 	under section 256.045;
82.18 	(8) be agreed upon and signed by the person, the person's legal guardian 
82.19 	or conservator, or the parent if the person is a minor, and the authorized county 
82.20 	representative; and
82.21 	(9) be reviewed by a health professional if the person has overriding medical needs 
82.22 	that impact the delivery of services.
82.23 	(b) Service planning formats developed for interagency planning such as transition, 
82.24 	vocational, and individual family service plans may be substituted for service planning 
82.25 	formats developed by county agencies.
82.26 	(c) Approved, written, and signed changes to a consumer's services that meet the 
82.27 	criteria in this subdivision shall be an addendum to that consumer's individual service plan.

82.28 	Sec. 21. Minnesota Statutes 2010, section 256B.092, subdivision 7, is amended to read:
82.29 		Subd. 7.Screening teams. (a) For persons with developmental disabilities, 
82.30 	screening teams shall be established which shall evaluate the need for the level of care 
82.31 	provided by residential-based habilitation services, residential services, training and 
82.32 	habilitation services, and nursing facility services. The evaluation shall address whether 
82.33 	home and community-based services are appropriate for persons who are at risk of 
82.34 	placement in an intermediate care facility for persons with developmental disabilities, or 
82.35 	for whom there is reasonable indication that they might require this level of care. The 
83.1 	screening team shall make an evaluation of need within 60 working days of a request for 
83.2 	service by a person with a developmental disability, and within five working days of 
83.3 	an emergency admission of a person to an intermediate care facility for persons with 
83.4 	developmental disabilities.
83.5 	(b) The screening team shall consist of the case manager for persons with 
83.6 	developmental disabilities, the person, the person's legal guardian or conservator, or the 
83.7 	parent if the person is a minor, and a qualified developmental disability professional, as 
83.8 	defined in the Code of Federal Regulations, title 42, section 483.430, as amended through 
83.9 	June 3, 1988. The case manager may also act as the qualified developmental disability 
83.10 	professional if the case manager meets the federal definition.
83.11 	(c) County social service agencies may contract with a public or private agency 
83.12 	or individual who is not a service provider for the person for the public guardianship 
83.13 	representation required by the screening or individual service planning process. The 
83.14 	contract shall be limited to public guardianship representation for the screening and 
83.15 	individual service planning activities. The contract shall require compliance with the 
83.16 	commissioner's instructions and may be for paid or voluntary services.
83.17 	(d) For persons determined to have overriding health care needs and are 
83.18 	seeking admission to a nursing facility or an ICF/MR, or seeking access to home and 
83.19 	community-based waivered services, a registered nurse must be designated as either the 
83.20 	case manager or the qualified developmental disability professional.
83.21 	(e) For persons under the jurisdiction of a correctional agency, the case manager 
83.22 	must consult with the corrections administrator regarding additional health, safety, and 
83.23 	supervision needs.
83.24 	(f) The case manager, with the concurrence of the person, the person's legal guardian 
83.25 	or conservator, or the parent if the person is a minor, may invite other individuals to 
83.26 	attend meetings of the screening team. With the permission of the person being screened 
83.27 	or the person's designated legal representative, the person's current provider of services 
83.28 	may submit a written report outlining their recommendations regarding the person's care 
83.29 	needs prepared by a direct service employee with at least 20 hours of service to that client. 
83.30 	The screening team must notify the provider of the date by which this information is to 
83.31 	be submitted. This information must be provided to the screening team and the person 
83.32 	or the person's legal representative and must be considered prior to the finalization of 
83.33 	the screening.
83.34 	(g) No member of the screening team shall have any direct or indirect service 
83.35 	provider interest in the case.
84.1 	(h) Nothing in this section shall be construed as requiring the screening team 
84.2 	meeting to be separate from the service planning meeting.

84.3 	Sec. 22. Minnesota Statutes 2011 Supplement, section 256B.097, subdivision 3, 
84.4 	is amended to read:
84.5 		Subd. 3.State Quality Council. (a) There is hereby created a State Quality 
84.6 	Council which must define regional quality councils, and carry out a community-based, 
84.7 	person-directed quality review component, and a comprehensive system for effective 
84.8 	incident reporting, investigation, analysis, and follow-up.
84.9 	(b) By August 1, 2011, the commissioner of human services shall appoint the 
84.10 	members of the initial State Quality Council. Members shall include representatives 
84.11 	from the following groups:
84.12 	(1) disability service recipients and their family members;
84.13 	(2) during the first two years of the State Quality Council, there must be at least three 
84.14 	members from the Region 10 stakeholders. As regional quality councils are formed under 
84.15 	subdivision 4, each regional quality council shall appoint one member;
84.16 	(3) disability service providers;
84.17 	(4) disability advocacy groups; and
84.18 	(5) county human services agencies and staff from the Department of Human 
84.19 	Services and Ombudsman for Mental Health and Developmental Disabilities.
84.20 	(c) Members of the council who do not receive a salary or wages from an employer 
84.21 	for time spent on council duties may receive a per diem payment when performing council 
84.22 	duties and functions.
84.23 	(d) The State Quality Council shall:
84.24 	(1) assist the Department of Human Services in fulfilling federally mandated 
84.25 	obligations by monitoring disability service quality and quality assurance and 
84.26 	improvement practices in Minnesota; and
84.27 	(2) establish state quality improvement priorities with methods for achieving results 
84.28 	and provide an annual report to the legislative committees with jurisdiction over policy 
84.29 	and funding of disability services on the outcomes, improvement priorities, and activities 
84.30 	undertaken by the commission during the previous state fiscal year.;
84.31 	(3) identify issues pertaining to financial and personal risk that impede Minnesotans 
84.32 	with disabilities from optimizing choice of community-based services; and
84.33 	(4) recommend to the chairs of the legislative committees with jurisdiction over 
84.34 	human services and civil law by January 15, 2013, statutory and rule changes related to 
85.1 	the findings under clause (3) that promote individualized service and housing choices 
85.2 	balanced with appropriate individualized protection.
85.3 	(e) The State Quality Council, in partnership with the commissioner, shall:
85.4 	(1) approve and direct implementation of the community-based, person-directed 
85.5 	system established in this section;
85.6 	(2) recommend an appropriate method of funding this system, and determine the 
85.7 	feasibility of the use of Medicaid, licensing fees, as well as other possible funding options;
85.8 	(3) approve measurable outcomes in the areas of health and safety, consumer 
85.9 	evaluation, education and training, providers, and systems;
85.10 	(4) establish variable licensure periods not to exceed three years based on outcomes 
85.11 	achieved; and
85.12 	(5) in cooperation with the Quality Assurance Commission, design a transition plan 
85.13 	for licensed providers from Region 10 into the alternative licensing system by July 1, 2013.
85.14 	(f) The State Quality Council shall notify the commissioner of human services that a 
85.15 	facility, program, or service has been reviewed by quality assurance team members under 
85.16 	subdivision 4, paragraph (b), clause (13), and qualifies for a license.
85.17 	(g) The State Quality Council, in partnership with the commissioner, shall establish 
85.18 	an ongoing review process for the system. The review shall take into account the 
85.19 	comprehensive nature of the system which is designed to evaluate the broad spectrum of 
85.20 	licensed and unlicensed entities that provide services to persons with disabilities. The 
85.21 	review shall address efficiencies and effectiveness of the system.
85.22 	(h) The State Quality Council may recommend to the commissioner certain 
85.23 	variances from the standards governing licensure of programs for persons with disabilities 
85.24 	in order to improve the quality of services so long as the recommended variances do 
85.25 	not adversely affect the health or safety of persons being served or compromise the 
85.26 	qualifications of staff to provide services.
85.27 	(i) The safety standards, rights, or procedural protections referenced under 
85.28 	subdivision 2, paragraph (c), shall not be varied. The State Quality Council may make 
85.29 	recommendations to the commissioner or to the legislature in the report required under 
85.30 	paragraph (c) regarding alternatives or modifications to the safety standards, rights, or 
85.31 	procedural protections referenced under subdivision 2, paragraph (c).
85.32 	(j) The State Quality Council may hire staff to perform the duties assigned in this 
85.33 	subdivision.

85.34 	Sec. 23. Minnesota Statutes 2010, section 256B.431, subdivision 17e, is amended to 
85.35 	read:
86.1 		Subd. 17e.Replacement-costs-new per bed limit effective October 1, 2007.
 86.2 	Notwithstanding Minnesota Rules, part 9549.0060, subpart 11, item C, subitem (2), 
86.3 	for a total replacement, as defined in subdivision 17d, authorized under section 
86.4 	144A.071 or 144A.073 after July 1, 1999, any building project that is a relocation, 
86.5 	renovation, upgrading, or conversion completed on or after July 1, 2001, or any 
86.6 	building project eligible for reimbursement under section 256B.434, subdivision 4f, the 
86.7 	replacement-costs-new per bed limit shall be $74,280 per licensed bed in multiple-bed 
86.8 	rooms, $92,850 per licensed bed in semiprivate rooms with a fixed partition separating 
86.9 	the resident beds, and $111,420 per licensed bed in single rooms. Minnesota Rules, part 
86.10 	9549.0060, subpart 11, item C, subitem (2), does not apply. These amounts must be 
86.11 	adjusted annually as specified in subdivision 3f, paragraph (a), beginning January 1, 
86.12 	2000. These amounts must be increased annually as specified in subdivision 3f, paragraph 
86.13 	(a), beginning October 1, 2012.

86.14 	Sec. 24. Minnesota Statutes 2010, section 256B.431, is amended by adding a 
86.15 	subdivision to read:
86.16 		Subd. 45.Rate adjustments for some moratorium exception projects.
 86.17 	Notwithstanding any other law to the contrary, money available for moratorium exception 
86.18 	projects under section 144A.073, subdivisions 2 and 11, shall be used to fund the 
86.19 	incremental rate increases resulting from this section for any nursing facility with a 
86.20 	moratorium exception project approved under section 144A.073, and completed after 
86.21 	August 30, 2010, where the replacement-costs-new limits under subdivision 17e were 
86.22 	higher at any time after project approval than at the time of project completion. The 
86.23 	commissioner shall calculate the property rate increase for these facilities using the highest 
86.24 	set of limits; however, any rate increase under this section shall not be effective until on 
86.25 	or after the effective date of this section, contingent upon federal approval. No property 
86.26 	rate decrease shall result from this section.

86.27 	EFFECTIVE DATE. This section is effective upon federal approval.

86.28 	Sec. 25. Minnesota Statutes 2011 Supplement, section 256B.49, subdivision 14, 
86.29 	is amended to read:
86.30 		Subd. 14.Assessment and reassessment. (a) Assessments of each recipient's 
86.31 	strengths, informal support systems, and need for services shall be completed within 20 
86.32 	working days of the recipient's request as provided in section 256B.0911. Reassessment of 
86.33 	each recipient's strengths, support systems, and need for services shall be conducted at 
86.34 	least every 12 months and at other times when there has been a significant change in the 
87.1 	recipient's functioning. With the permission of the recipient or the recipient's designated 
87.2 	legal representative, the recipient's current provider of services may submit a written 
87.3 	report outlining their recommendations regarding the recipient's care needs prepared by 
87.4 	a direct service employee with at least 20 hours of service to that client. The person 
87.5 	conducting the assessment or reassessment must notify the provider of the date by which 
87.6 	this information is to be submitted. This information shall be provided to the person 
87.7 	conducting the assessment and the person or the person's legal representative and must be 
87.8 	considered prior to the finalization of the assessment or reassessment.
87.9 	(b) There must be a determination that the client requires a hospital level of care or a 
87.10 	nursing facility level of care as defined in section 256B.0911, subdivision 4a, paragraph 
87.11 	(d), at initial and subsequent assessments to initiate and maintain participation in the 
87.12 	waiver program.
87.13 	(c) Regardless of other assessments identified in section 144.0724, subdivision 4, as 
87.14 	appropriate to determine nursing facility level of care for purposes of medical assistance 
87.15 	payment for nursing facility services, only face-to-face assessments conducted according 
87.16 	to section 256B.0911, subdivisions 3a, 3b, and 4d, that result in a hospital level of care 
87.17 	determination or a nursing facility level of care determination must be accepted for 
87.18 	purposes of initial and ongoing access to waiver services payment.
87.19 	(d) Persons with developmental disabilities who apply for services under the nursing 
87.20 	facility level waiver programs shall be screened for the appropriate level of care according 
87.21 	to section 256B.092.
87.22 	(e) Recipients who are found eligible for home and community-based services under 
87.23 	this section before their 65th birthday may remain eligible for these services after their 
87.24 	65th birthday if they continue to meet all other eligibility factors.
87.25 	(f) The commissioner shall develop criteria to identify recipients whose level of 
87.26 	functioning is reasonably expected to improve and reassess these recipients to establish 
87.27 	a baseline assessment. Recipients who meet these criteria must have a comprehensive 
87.28 	transitional service plan developed under subdivision 15, paragraphs (b) and (c), and be 
87.29 	reassessed every six months until there has been no significant change in the recipient's 
87.30 	functioning for at least 12 months. After there has been no significant change in the 
87.31 	recipient's functioning for at least 12 months, reassessments of the recipient's strengths, 
87.32 	informal support systems, and need for services shall be conducted at least every 12 
87.33 	months and at other times when there has been a significant change in the recipient's 
87.34 	functioning. Counties, case managers, and service providers are responsible for 
87.35 	conducting these reassessments and shall complete the reassessments out of existing funds.

88.1 	Sec. 26. Minnesota Statutes 2011 Supplement, section 256B.49, subdivision 15, 
88.2 	is amended to read:
88.3 		Subd. 15.Individualized service plan; comprehensive transitional service plan; 
88.4 	maintenance service plan. (a) Each recipient of home and community-based waivered 
88.5 	services shall be provided a copy of the written service plan which:
88.6 	(1) is developed and signed by the recipient within ten working days of the 
88.7 	completion of the assessment;
88.8 	(2) meets the assessed needs of the recipient;
88.9 	(3) reasonably ensures the health and safety of the recipient;
88.10 	(4) promotes independence;
88.11 	(5) allows for services to be provided in the most integrated settings; and
88.12 	(6) provides for an informed choice, as defined in section 256B.77, subdivision 2, 
88.13 	paragraph (p), of service and support providers.
88.14 	(b) In developing the comprehensive transitional service plan, the individual 
88.15 	receiving services, the case manager, and the guardian, if applicable, will identify 
88.16 	the transitional service plan fundamental service outcome and anticipated timeline to 
88.17 	achieve this outcome. Within the first 20 days following a recipient's request for an 
88.18 	assessment or reassessment, the transitional service planning team must be identified. A 
88.19 	team leader must be identified who will be responsible for assigning responsibility and 
88.20 	communicating with team members to ensure implementation of the transition plan and 
88.21 	ongoing assessment and communication process. The team leader should be an individual, 
88.22 	such as the case manager or guardian, who has the opportunity to follow the recipient to 
88.23 	the next level of service.
88.24 	Within ten days following an assessment, a comprehensive transitional service plan 
88.25 	must be developed incorporating elements of a comprehensive functional assessment and 
88.26 	including short-term measurable outcomes and timelines for achievement of and reporting 
88.27 	on these outcomes. Functional milestones must also be identified and reported according 
88.28 	to the timelines agreed upon by the transitional service planning team. In addition, the 
88.29 	comprehensive transitional service plan must identify additional supports that may assist 
88.30 	in the achievement of the fundamental service outcome such as the development of greater 
88.31 	natural community support, increased collaboration among agencies, and technological 
88.32 	supports.
88.33 	The timelines for reporting on functional milestones will prompt a reassessment of 
88.34 	services provided, the units of services, rates, and appropriate service providers. It is 
88.35 	the responsibility of the transitional service planning team leader to review functional 
88.36 	milestone reporting to determine if the milestones are consistent with observable skills 
89.1 	and that milestone achievement prompts any needed changes to the comprehensive 
89.2 	transitional service plan.
89.3 	For those whose fundamental transitional service outcome involves the need to 
89.4 	procure housing, a plan for the recipient to seek the resources necessary to secure the least 
89.5 	restrictive housing possible should be incorporated into the plan, including employment 
89.6 	and public supports such as housing access and shelter needy funding.
89.7 	(c) Counties and other agencies responsible for funding community placement and 
89.8 	ongoing community supportive services are responsible for the implementation of the 
89.9 	comprehensive transitional service plans. Oversight responsibilities include both ensuring 
89.10 	effective transitional service delivery and efficient utilization of funding resources.
89.11 	(d) Following one year of transitional services, the transitional services planning 
89.12 	team will make a determination as to whether or not the individual receiving services 
89.13 	requires the current level of continuous and consistent support in order to maintain the 
89.14 	recipient's current level of functioning. Recipients who are determined to have not had 
89.15 	a significant change in functioning for 12 months must move from a transitional to a 
89.16 	maintenance service plan. Recipients on a maintenance service plan must be reassessed 
89.17 	to determine if the recipient would benefit from a transitional service plan at least every 
89.18 	12 months and at other times when there has been a significant change in the recipient's 
89.19 	functioning. This assessment should consider any changes to technological or natural 
89.20 	community supports.
89.21 	(e) When a county is evaluating denials, reductions, or terminations of home and 
89.22 	community-based services under section 256B.49 for an individual, the case manager 
89.23 	shall offer to meet with the individual or the individual's guardian in order to discuss the 
89.24 	prioritization of service needs within the individualized service plan, comprehensive 
89.25 	transitional service plan, or maintenance service plan. The reduction in the authorized 
89.26 	services for an individual due to changes in funding for waivered services may not exceed 
89.27 	the amount needed to ensure medically necessary services to meet the individual's health, 
89.28 	safety, and welfare.
89.29 	(f) At the time of reassessment, local agency case managers shall assess each 
89.30 	recipient of community alternatives for disabled individuals or traumatic brain injury 
89.31 	waivered services currently residing in a licensed adult foster home that is not the primary 
89.32 	residence of the license holder, or in which the license holder is not the primary caregiver, 
89.33 	to determine if that recipient could appropriately be served in a community-living setting. 
89.34 	If appropriate for the recipient, the case manager shall offer the recipient, through a 
89.35 	person-centered planning process, the option to receive alternative housing and service 
89.36 	options. In the event that the recipient chooses to transfer from the adult foster home, 
90.1 	the vacated bed shall not be filled with another recipient of waiver services and group 
90.2 	residential housing , unless and the licensed capacity shall be reduced accordingly, unless 
90.3 	the savings required by the 2011 licensed bed closure reductions for foster care settings 
90.4 	where the physical location is not the primary residence of the license holder are met 
90.5 	through voluntary changes described in section 245A.03, subdivision 7, paragraph (f), 
90.6 	or as provided under section 245A.03, subdivision 7, paragraph (a), clauses (3) and (4), 
90.7 	and the licensed capacity shall be reduced accordingly. If the adult foster home becomes 
90.8 	no longer viable due to these transfers, the county agency, with the assistance of the 
90.9 	department, shall facilitate a consolidation of settings or closure. This reassessment 
90.10 	process shall be completed by June 30, 2012 July 1, 2013.

90.11 	Sec. 27. Minnesota Statutes 2011 Supplement, section 256B.49, subdivision 23, 
90.12 	is amended to read:
90.13 		Subd. 23.Community-living settings. "Community-living settings" means a 
90.14 	single-family home or apartment where the service recipient or their family owns or rents, 
90.15 	as demonstrated by a lease agreement, and maintains control over the individual unit. as 
90.16 	demonstrated by the lease agreement, or has a plan for transition of a lease from a service 
90.17 	provider to the individual. Within two years of signing the initial lease, the service provider 
90.18 	shall transfer the lease to the individual. In the event the landlord denies the transfer, the 
90.19 	commissioner may approve an exception within sufficient time to ensure the continued 
90.20 	occupancy by the individual. Community-living settings are subject to the following:
90.21 	(1) individuals are not required to receive services;
90.22 	(2) individuals are not required to have a disability or specific diagnosis to live in the 
90.23 	community-living setting unless state or federal funding for housing requires it;
90.24 	(3) individuals may hire service providers of their choice;
90.25 	(4) individuals may choose whether to share their household and with whom;
90.26 	(5) the home or apartment must include living, sleeping, bathing, and cooking areas;
90.27 	(6) individuals must have lockable access and egress;
90.28 	(7) individuals must be free to receive visitors and leave the settings at times and for 
90.29 	durations of their own choosing;
90.30 	(8) leases must not reserve the right to assign units or change unit assignments; and
90.31 	(9) access to the greater community must be easily facilitated based on the 
90.32 	individual's needs and preferences.

90.33 	Sec. 28. [256B.492] HOME AND COMMUNITY-BASED SETTINGS.
91.1 	(a) For purposes of the home and community-based waiver programs under sections 
91.2 	256B.092 and 256B.49, home and community-based settings include:
91.3 	(1) licensed adult or child foster care settings of four or five, if emergency exception 
91.4 	criteria are met; and
91.5 	(2) other settings that meet the definition of "community-living settings" under 
91.6 	section 256B.49, subdivision 23:
91.7 	(i) in addition to this definition, if a single corporation or entity provides both 
91.8 	housing and services, there must be a distinct separation between the housing and services;
91.9 	(ii) individuals may choose a service provider separate from the housing provider 
91.10 	without being required to move; and
91.11 	(iii) for settings that meet this definition, individuals with disabilities may reside in 
91.12 	up to four units plus 25 percent of the remaining units in the building unless an exception 
91.13 	is granted under paragraph (c).
91.14 	(b) For purposes of the home and community-based waiver programs under sections 
91.15 	256B.092 and 256B.49, home and community-based settings must not:
91.16 	(1) be located in a building that is also a publicly or privately operated facility that 
91.17 	provides institutional treatment or custodial care;
91.18 	(2) be located in a building on the grounds of, or immediately adjacent to, a public 
91.19 	institution;
91.20 	(3) be a housing complex designed expressly around an individual's diagnosis or 
91.21 	disability;
91.22 	(4) be segregated based on disability, either physically or because of setting 
91.23 	characteristics, from the larger community; or
91.24 	(5) have the qualities of an institution which include, but are not limited to: 
91.25 	regimented meal and sleep times, limitations on visitors, and lack of privacy. Restrictions 
91.26 	agreed to and documented in the person's individual service plan shall not result in a 
91.27 	residence having the qualities of an institution as long as the restrictions for the person are 
91.28 	not imposed upon others in the same residence and are the least restrictive alternative, 
91.29 	imposed for the shortest possible time to meet the person's needs.
91.30 	(c) Upon amendment of the home and community-based services waivers, residential 
91.31 	settings which serve persons with disabilities under one of the disability waiver programs 
91.32 	in more than 25 percent of the units in a building, but otherwise meet the requirements 
91.33 	of this section, may request an exception for the number of units in which services were 
91.34 	provided as of January 1, 2012. The commissioner shall grant exception requests which 
91.35 	meet the criteria in this section and maintain a list of those settings that have approved 
92.1 	exceptions and allow home and community-based waiver payments to be made for 
92.2 	services provided.

92.3 	Sec. 29. Minnesota Statutes 2011 Supplement, section 256B.5012, subdivision 13, 
92.4 	is amended to read:
92.5 		Subd. 13.ICF/DD rate decrease effective July 1, 2012 2013. Notwithstanding 
92.6 	subdivision 12, for each facility reimbursed under this section, the commissioner shall 
92.7 	decrease operating payments equal to 1.67 percent of the operating payment rates in effect 
92.8 	on June 30, 2012 2013. For each facility, the commissioner shall apply the rate reduction 
92.9 	based on occupied beds, using the percentage specified in this subdivision multiplied by 
92.10 	the total payment rate, including the variable rate but excluding the property-related 
92.11 	payment rate, in effect on the preceding date. The total rate reduction shall include the 
92.12 	adjustment provided in section 256B.501, subdivision 12.

92.13 	Sec. 30. Minnesota Statutes 2010, section 256D.44, subdivision 5, is amended to read:
92.14 		Subd. 5.Special needs. In addition to the state standards of assistance established in 
92.15 	subdivisions 1 to 4, payments are allowed for the following special needs of recipients of 
92.16 	Minnesota supplemental aid who are not residents of a nursing home, a regional treatment 
92.17 	center, or a group residential housing facility.
92.18 	(a) The county agency shall pay a monthly allowance for medically prescribed 
92.19 	diets if the cost of those additional dietary needs cannot be met through some other 
92.20 	maintenance benefit. The need for special diets or dietary items must be prescribed by 
92.21 	a licensed physician. Costs for special diets shall be determined as percentages of the 
92.22 	allotment for a one-person household under the thrifty food plan as defined by the United 
92.23 	States Department of Agriculture. The types of diets and the percentages of the thrifty 
92.24 	food plan that are covered are as follows:
92.25 	(1) high protein diet, at least 80 grams daily, 25 percent of thrifty food plan;
92.26 	(2) controlled protein diet, 40 to 60 grams and requires special products, 100 percent 
92.27 	of thrifty food plan;
92.28 	(3) controlled protein diet, less than 40 grams and requires special products, 125 
92.29 	percent of thrifty food plan;
92.30 	(4) low cholesterol diet, 25 percent of thrifty food plan;
92.31 	(5) high residue diet, 20 percent of thrifty food plan;
92.32 	(6) pregnancy and lactation diet, 35 percent of thrifty food plan;
92.33 	(7) gluten-free diet, 25 percent of thrifty food plan;
92.34 	(8) lactose-free diet, 25 percent of thrifty food plan;
93.1 	(9) antidumping diet, 15 percent of thrifty food plan;
93.2 	(10) hypoglycemic diet, 15 percent of thrifty food plan; or
93.3 	(11) ketogenic diet, 25 percent of thrifty food plan.
93.4 	(b) Payment for nonrecurring special needs must be allowed for necessary home 
93.5 	repairs or necessary repairs or replacement of household furniture and appliances using 
93.6 	the payment standard of the AFDC program in effect on July 16, 1996, for these expenses, 
93.7 	as long as other funding sources are not available.
93.8 	(c) A fee for guardian or conservator service is allowed at a reasonable rate 
93.9 	negotiated by the county or approved by the court. This rate shall not exceed five percent 
93.10 	of the assistance unit's gross monthly income up to a maximum of $100 per month. If the 
93.11 	guardian or conservator is a member of the county agency staff, no fee is allowed.
93.12 	(d) The county agency shall continue to pay a monthly allowance of $68 for 
93.13 	restaurant meals for a person who was receiving a restaurant meal allowance on June 1, 
93.14 	1990, and who eats two or more meals in a restaurant daily. The allowance must continue 
93.15 	until the person has not received Minnesota supplemental aid for one full calendar month 
93.16 	or until the person's living arrangement changes and the person no longer meets the criteria 
93.17 	for the restaurant meal allowance, whichever occurs first.
93.18 	(e) A fee of ten percent of the recipient's gross income or $25, whichever is less, 
93.19 	is allowed for representative payee services provided by an agency that meets the 
93.20 	requirements under SSI regulations to charge a fee for representative payee services. This 
93.21 	special need is available to all recipients of Minnesota supplemental aid regardless of 
93.22 	their living arrangement.
93.23 	(f)(1) Notwithstanding the language in this subdivision, an amount equal to the 
93.24 	maximum allotment authorized by the federal Food Stamp Program for a single individual 
93.25 	which is in effect on the first day of July of each year will be added to the standards of 
93.26 	assistance established in subdivisions 1 to 4 for adults under the age of 65 who qualify 
93.27 	as shelter needy and are: (i) relocating from an institution, or an adult mental health 
93.28 	residential treatment program under section 256B.0622; (ii) eligible for the self-directed 
93.29 	supports option as defined under section 256B.0657, subdivision 2; or (iii) home and 
93.30 	community-based waiver recipients living in their own home or rented or leased apartment 
93.31 	which is not owned, operated, or controlled by a provider of service not related by blood 
93.32 	or marriage, unless allowed under paragraph (g).
93.33 	(2) Notwithstanding subdivision 3, paragraph (c), an individual eligible for the 
93.34 	shelter needy benefit under this paragraph is considered a household of one. An eligible 
93.35 	individual who receives this benefit prior to age 65 may continue to receive the benefit 
93.36 	after the age of 65.
94.1 	(3) "Shelter needy" means that the assistance unit incurs monthly shelter costs that 
94.2 	exceed 40 percent of the assistance unit's gross income before the application of this 
94.3 	special needs standard. "Gross income" for the purposes of this section is the applicant's or 
94.4 	recipient's income as defined in section 256D.35, subdivision 10, or the standard specified 
94.5 	in subdivision 3, paragraph (a) or (b), whichever is greater. A recipient of a federal or 
94.6 	state housing subsidy, that limits shelter costs to a percentage of gross income, shall not be 
94.7 	considered shelter needy for purposes of this paragraph.
94.8 	(g) Notwithstanding this subdivision, to access housing and services as provided 
94.9 	in paragraph (f), the recipient may choose housing that may be owned, operated, or 
94.10 	controlled by the recipient's service provider. In a multifamily building of four or more 
94.11 	units, the maximum number of apartments that may be used by recipients of this program 
94.12 	shall be 50 percent of the units in a building. This paragraph expires on June 30, 2012. of 
94.13 	more than four units, the maximum number of units that may be used by recipients of this 
94.14 	program shall be 50 percent of the units in the building. When housing is controlled by 
94.15 	the service provider, the individual may choose the individual's own service provider as 
94.16 	provided in section 256B.49, subdivision 23, clause (3). When the housing is controlled 
94.17 	by the service provider, the service provider shall implement a plan with the recipient to 
94.18 	transition the lease to the recipient's name. Within two years of signing the initial lease, 
94.19 	the service provider shall transfer the lease entered into under this subdivision to the 
94.20 	recipient. In the event the landlord denies this transfer, the commissioner may approve an 
94.21 	exception within sufficient time to ensure the continued occupancy by the recipient. This 
94.22 	paragraph expires June 30, 2016. 

94.23 	Sec. 31. Laws 2011, First Special Session chapter 9, article 7, section 54, is amended to 
94.24 	read:
94.25 	Sec. 54. CONTINGENCY PROVIDER RATE AND GRANT REDUCTIONS.
 94.26 	(a) Notwithstanding any other rate reduction in this article, the commissioner of 
94.27 	human services shall decrease grants, allocations, reimbursement rates, individual limits, 
94.28 	and rate limits, as applicable, by 1.67 percent effective July 1, 2012 2013, for services 
94.29 	rendered on or after those dates. County or tribal contracts for services specified in this 
94.30 	section must be amended to pass through these rate reductions within 60 days of the 
94.31 	effective date of the decrease, and must be retroactive from the effective date of the rate 
94.32 	decrease.
94.33 	(b) The rate changes described in this section must be provided to:
95.1 	(1) home and community-based waivered services for persons with developmental 
95.2 	disabilities or related conditions, including consumer-directed community supports, under 
95.3 	Minnesota Statutes, section 256B.501;
95.4 	(2) home and community-based waivered services for the elderly, including 
95.5 	consumer-directed community supports, under Minnesota Statutes, section 256B.0915;
95.6 	(3) waivered services under community alternatives for disabled individuals, 
95.7 	including consumer-directed community supports, under Minnesota Statutes, section 
95.8 	256B.49;
95.9 	(4) community alternative care waivered services, including consumer-directed 
95.10 	community supports, under Minnesota Statutes, section 256B.49;
95.11 	(5) traumatic brain injury waivered services, including consumer-directed 
95.12 	community supports, under Minnesota Statutes, section 256B.49;
95.13 	(6) nursing services and home health services under Minnesota Statutes, section 
95.14 	256B.0625, subdivision 6a;
95.15 	(7) personal care services and qualified professional supervision of personal care 
95.16 	services under Minnesota Statutes, section 256B.0625, subdivisions 6a and 19a;
95.17 	(8) private duty nursing services under Minnesota Statutes, section 256B.0625, 
95.18 	subdivision 7;
95.19 	(9) day training and habilitation services for adults with developmental disabilities 
95.20 	or related conditions, under Minnesota Statutes, sections 252.40 to 252.46, including the 
95.21 	additional cost of rate adjustments on day training and habilitation services, provided as a 
95.22 	social service under Minnesota Statutes, section 256M.60; and
95.23 	(10) alternative care services under Minnesota Statutes, section 256B.0913.
95.24 	(c) A managed care plan receiving state payments for the services in this section 
95.25 	must include these decreases in their payments to providers. To implement the rate 
95.26 	reductions in this section, capitation rates paid by the commissioner to managed care 
95.27 	organizations under Minnesota Statutes, section 256B.69, shall reflect a 2.34 percent 
95.28 	reduction for the specified services for the period of January 1, 2013, through June 30, 
95.29 	2013, and a 1.67 percent reduction for those services on and after July 1, 2013.
95.30 	The above payment rate reduction, allocation rates, and rate limits shall expire for 
95.31 	services rendered on December 31, 2013.

95.32 	Sec. 32. Laws 2011, First Special Session chapter 9, article 10, section 3, subdivision 
95.33 	3, is amended to read:

95.34	Subd. 3.Forecasted Programs
 					
96.1 	The amounts that may be spent from this 
96.2 	appropriation for each purpose are as follows:

96.3	(a) MFIP/DWP Grants

96.4	Appropriations by Fund
	
96.5	General
	84,680,000
	91,978,000
	
96.6	Federal TANF
	84,425,000
	75,417,000

96.7	(b) MFIP Child Care Assistance Grants
		55,456,000
		30,923,000

96.8	(c) General Assistance Grants
		49,192,000
		46,938,000
	
96.9 	General Assistance Standard. The 
96.10 	commissioner shall set the monthly standard 
96.11 	of assistance for general assistance units 
96.12 	consisting of an adult recipient who is 
96.13 	childless and unmarried or living apart 
96.14 	from parents or a legal guardian at $203. 
96.15 	The commissioner may reduce this amount 
96.16 	according to Laws 1997, chapter 85, article 
96.17 	3, section 54.
96.18 	Emergency General Assistance. The 
96.19 	amount appropriated for emergency general 
96.20 	assistance funds is limited to no more 
96.21 	than $6,689,812 in fiscal year 2012 and 
96.22 	$6,729,812 in fiscal year 2013. Funds 
96.23 	to counties shall be allocated by the 
96.24 	commissioner using the allocation method 
96.25 	specified in Minnesota Statutes, section 
96.26 	256D.06.

96.27	(d) Minnesota Supplemental Aid Grants
		38,095,000
		39,120,000

96.28	(e) Group Residential Housing Grants
		121,080,000
		129,238,000

96.29	(f) MinnesotaCare Grants
		295,046,000
		317,272,000
	
96.30 	This appropriation is from the health care 
96.31 	access fund.

96.32	(g) Medical Assistance Grants
		4,501,582,000
		4,437,282,000
	
97.1 	Managed Care Incentive Payments. The 
97.2 	commissioner shall not make managed care 
97.3 	incentive payments for expanding preventive 
97.4 	services during fiscal years beginning July 1, 
97.5 	2011, and July 1, 2012.
97.6 	Reduction of Rates for Congregate 
97.7 	Living for Individuals with Lower Needs. 
97.8 	Beginning October 1, 2011, through June 
97.9 	30, 2012, lead agencies must reduce rates in 
97.10 	effect on January 1, 2011, by ten percent for 
97.11 	individuals with lower needs living in foster 
97.12 	care settings where the license holder does 
97.13 	not share the residence with recipients on 
97.14 	the CADI and DD waivers and customized 
97.15 	living settings for CADI. Beginning July 
97.16 	1, 2012, lead agencies must reduce rates in 
97.17 	effect on January 1, 2011, by ten percent, 
97.18 	for individuals living in foster care settings 
97.19 	where the license holder does not share the 
97.20 	residence with recipients on the CADI and 
97.21 	DD waivers and customized living settings 
97.22 	for CADI, in a manner that ensures that: 
97.23 	(1) an identical percentage of recipients 
97.24 	receiving services under each waiver receive 
97.25 	a reduction; and (2) the projected savings 
97.26 	for this provision for fiscal year 2013 are 
97.27 	achieved, notwithstanding whether or not a 
97.28 	recipient is an individual with lower needs.
97.29 	Lead agencies must adjust contracts within 
97.30 	60 days of the effective date.
97.31 	Reduction of Lead Agency Waiver 
97.32 	Allocations to Implement Rate Reductions 
97.33 	for Congregate Living for Individuals 
97.34 	with Lower Needs. Beginning October 1, 
97.35 	2011, the commissioner shall reduce lead 
97.36 	agency waiver allocations to implement the 
98.1 	reduction of rates for individuals with lower 
98.2 	needs living in foster care settings where the 
98.3 	license holder does not share the residence 
98.4 	with recipients on the CADI and DD waivers 
98.5 	and customized living settings for CADI.
98.6 	Reduce customized living and 24-hour 
98.7 	customized living component rates.
98.8 	Effective July 1, 2011, the commissioner 
98.9 	shall reduce elderly waiver customized living 
98.10 	and 24-hour customized living component 
98.11 	service spending by five percent through 
98.12 	reductions in component rates and service 
98.13 	rate limits. The commissioner shall adjust 
98.14 	the elderly waiver capitation payment 
98.15 	rates for managed care organizations paid 
98.16 	under Minnesota Statutes, section 256B.69, 
98.17 	subdivisions 6a and 23, to reflect reductions 
98.18 	in component spending for customized living 
98.19 	services and 24-hour customized living 
98.20 	services under Minnesota Statutes, section 
98.21 	256B.0915, subdivisions 3e and 3h, for the 
98.22 	contract period beginning January 1, 2012. 
98.23 	To implement the reduction specified in 
98.24 	this provision, capitation rates paid by the 
98.25 	commissioner to managed care organizations 
98.26 	under Minnesota Statutes, section 256B.69, 
98.27 	shall reflect a ten percent reduction for the 
98.28 	specified services for the period January 1, 
98.29 	2012, to June 30, 2012, and a five percent 
98.30 	reduction for those services on or after July 
98.31 	1, 2012.
98.32 	Limit Growth in the Developmental 
98.33 	Disability Waiver. The commissioner 
98.34 	shall limit growth in the developmental 
98.35 	disability waiver to six diversion allocations 
98.36 	per month beginning July 1, 2011, through 
99.1 	June 30, 2013, and 15 diversion allocations 
99.2 	per month beginning July 1, 2013, through 
99.3 	June 30, 2015. Waiver allocations shall 
99.4 	be targeted to individuals who meet the 
99.5 	priorities for accessing waiver services 
99.6 	identified in Minnesota Statutes, 256B.092, 
99.7 	subdivision 12. The limits do not include 
99.8 	conversions from intermediate care facilities 
99.9 	for persons with developmental disabilities. 
99.10 	Notwithstanding any contrary provisions in 
99.11 	this article, this paragraph expires June 30, 
99.12 	2015.
99.13 	Limit Growth in the Community 
99.14 	Alternatives for Disabled Individuals 
99.15 	Waiver. The commissioner shall limit 
99.16 	growth in the community alternatives for 
99.17 	disabled individuals waiver to 60 allocations 
99.18 	per month beginning July 1, 2011, through 
99.19 	June 30, 2013, and 85 allocations per 
99.20 	month beginning July 1, 2013, through 
99.21 	June 30, 2015. Waiver allocations must 
99.22 	be targeted to individuals who meet the 
99.23 	priorities for accessing waiver services 
99.24 	identified in Minnesota Statutes, section 
99.25 	256B.49, subdivision 11a. The limits include 
99.26 	conversions and diversions, unless the 
99.27 	commissioner has approved a plan to convert 
99.28 	funding due to the closure or downsizing 
99.29 	of a residential facility or nursing facility 
99.30 	to serve directly affected individuals on 
99.31 	the community alternatives for disabled 
99.32 	individuals waiver. Notwithstanding any 
99.33 	contrary provisions in this article, this 
99.34 	paragraph expires June 30, 2015.
99.35 	Personal Care Assistance Relative 
99.36 	Care. The commissioner shall adjust the 
100.1 	capitation payment rates for managed care 
100.2 	organizations paid under Minnesota Statutes, 
100.3 	section 256B.69, to reflect the rate reductions 
100.4 	for personal care assistance provided by 
100.5 	a relative pursuant to Minnesota Statutes, 
100.6 	section 256B.0659, subdivision 11.

100.7	(h) Alternative Care Grants
		46,421,000
		46,035,000
	
100.8 	Alternative Care Transfer. Any money 
100.9 	allocated to the alternative care program that 
100.10 	is not spent for the purposes indicated does 
100.11 	not cancel but shall be transferred to the 
100.12 	medical assistance account.

100.13	(i) Chemical Dependency Entitlement Grants
		94,675,000
		93,298,000

100.14 	Sec. 33. Laws 2011, First Special Session chapter 9, article 10, section 3, subdivision 
100.15 	4, is amended to read:

100.16	Subd. 4.Grant Programs
 					
100.17 	The amounts that may be spent from this 
100.18 	appropriation for each purpose are as follows:

100.19	(a) Support Services Grants

100.20	Appropriations by Fund
	
100.21	General
	8,715,000
	8,715,000
	
100.22	Federal TANF
	100,525,000
	94,611,000
	
100.23 	MFIP Consolidated Fund Grants. The 
100.24 	TANF fund base is reduced by $10,000,000 
100.25 	each year beginning in fiscal year 2012.
100.26 	Subsidized Employment Funding Through 
100.27 	ARRA. The commissioner is authorized to 
100.28 	apply for TANF emergency fund grants for 
100.29 	subsidized employment activities. Growth 
100.30 	in expenditures for subsidized employment 
100.31 	within the supported work program and the 
100.32 	MFIP consolidated fund over the amount 
100.33 	expended in the calendar year quarters in 
101.1 	the TANF emergency fund base year shall 
101.2 	be used to leverage the TANF emergency 
101.3 	fund grants for subsidized employment and 
101.4 	to fund supported work. The commissioner 
101.5 	shall develop procedures to maximize 
101.6 	reimbursement of these expenditures over the 
101.7 	TANF emergency fund base year quarters, 
101.8 	and may contract directly with employers 
101.9 	and providers to maximize these TANF 
101.10 	emergency fund grants.

101.11
101.12	(b) Basic Sliding Fee Child Care Assistance 
Grants
		37,144,000
		38,678,000
	
101.13 	Base Adjustment. The general fund base is 
101.14 	decreased by $990,000 in fiscal year 2014 
101.15 	and $979,000 in fiscal year 2015.
101.16 	Child Care and Development Fund 
101.17 	Unexpended Balance. In addition to 
101.18 	the amount provided in this section, the 
101.19 	commissioner shall expend $5,000,000 
101.20 	in fiscal year 2012 from the federal child 
101.21 	care and development fund unexpended 
101.22 	balance for basic sliding fee child care under 
101.23 	Minnesota Statutes, section 119B.03. The 
101.24 	commissioner shall ensure that all child 
101.25 	care and development funds are expended 
101.26 	according to the federal child care and 
101.27 	development fund regulations.

101.28	(c) Child Care Development Grants
		774,000
		774,000
	
101.29 	Base Adjustment. The general fund base is 
101.30 	increased by $713,000 in fiscal years 2014 
101.31 	and 2015.

101.32	(d) Child Support Enforcement Grants
		50,000
		50,000
	
101.33 	Federal Child Support Demonstration 
101.34 	Grants. Federal administrative 
101.35 	reimbursement resulting from the federal 
102.1 	child support grant expenditures authorized 
102.2 	under section 1115a of the Social Security 
102.3 	Act is appropriated to the commissioner for 
102.4 	this activity.

102.5	(e) Children's Services Grants

102.6	Appropriations by Fund
	
102.7	General
	47,949,000
	48,507,000
	
102.8	Federal TANF
	140,000
	140,000
	
102.9 	Adoption Assistance and Relative Custody 
102.10 	Assistance Transfer. The commissioner 
102.11 	may transfer unencumbered appropriation 
102.12 	balances for adoption assistance and relative 
102.13 	custody assistance between fiscal years and 
102.14 	between programs.
102.15 	Privatized Adoption Grants. Federal 
102.16 	reimbursement for privatized adoption grant 
102.17 	and foster care recruitment grant expenditures 
102.18 	is appropriated to the commissioner for 
102.19 	adoption grants and foster care and adoption 
102.20 	administrative purposes.
102.21 	Adoption Assistance Incentive Grants.
102.22 	Federal funds available during fiscal year 
102.23 	2012 and fiscal year 2013 for adoption 
102.24 	incentive grants are appropriated to the 
102.25 	commissioner for these purposes.

102.26	(f) Children and Community Services Grants
		53,301,000
		53,301,000

102.27	(g) Children and Economic Support Grants

102.28	Appropriations by Fund
	
102.29	General
	16,103,000
	16,180,000
	
102.30	Federal TANF
	700,000
	0
	
102.31 	Long-Term Homeless Services. $700,000 
102.32 	is appropriated from the federal TANF 
102.33 	fund for the biennium beginning July 
102.34 	1, 2011, to the commissioner of human 
103.1 	services for long-term homeless services 
103.2 	for low-income homeless families under 
103.3 	Minnesota Statutes, section 256K.26. This 
103.4 	is a onetime appropriation and is not added 
103.5 	to the base.
103.6 	Base Adjustment. The general fund base is 
103.7 	increased by $42,000 in fiscal year 2014 and 
103.8 	$43,000 in fiscal year 2015.
103.9 	Minnesota Food Assistance Program. 
103.10 	$333,000 in fiscal year 2012 and $408,000 in 
103.11 	fiscal year 2013 are to increase the general 
103.12 	fund base for the Minnesota food assistance 
103.13 	program. Unexpended funds for fiscal year 
103.14 	2012 do not cancel but are available to the 
103.15 	commissioner for this purpose in fiscal year 
103.16 	2013.

103.17	(h) Health Care Grants

103.18	Appropriations by Fund
	
103.19	General
	26,000
	66,000
	
103.20	Health Care Access
	190,000
	190,000
	
103.21 	Base Adjustment. The general fund base is 
103.22 	increased by $24,000 in each of fiscal years 
103.23 	2014 and 2015.

103.24	(i) Aging and Adult Services Grants
		12,154,000
		11,456,000
	
103.25 	Aging Grants Reduction. Effective July 
103.26 	1, 2011, funding for grants made under 
103.27 	Minnesota Statutes, sections 256.9754 and 
103.28 	256B.0917, subdivision 13, is reduced by 
103.29 	$3,600,000 for each year of the biennium. 
103.30 	These reductions are onetime and do 
103.31 	not affect base funding for the 2014-2015 
103.32 	biennium. Grants made during the 2012-2013 
103.33 	biennium under Minnesota Statutes, section 
103.34 	256B.9754, must not be used for new 
103.35 	construction or building renovation.
104.1 	Essential Community Support Grant 
104.2 	Delay. Upon federal approval to implement 
104.3 	the nursing facility level of care on July 
104.4 	1, 2013, essential community supports 
104.5 	grants under Minnesota Statutes, section 
104.6 	256B.0917, subdivision 14, are reduced by 
104.7 	$6,410,000 in fiscal year 2013. Base level 
104.8 	funding is increased by $5,541,000 in fiscal 
104.9 	year 2014 and $6,410,000 in fiscal year 2015.
104.10 	Base Level Adjustment. The general fund 
104.11 	base is increased by $10,035,000 in fiscal 
104.12 	year 2014 and increased by $10,901,000 in 
104.13 	fiscal year 2015.

104.14	(j) Deaf and Hard-of-Hearing Grants
		1,936,000
		1,767,000

104.15	(k) Disabilities Grants
		15,945,000
		18,284,000
	
104.16 	Grants for Housing Access Services. In 
104.17 	fiscal year 2012, the commissioner shall 
104.18 	make available a total of $161,000 in housing 
104.19 	access services grants to individuals who 
104.20 	relocate from an adult foster care home to 
104.21 	a community living setting for assistance 
104.22 	with completion of rental applications or 
104.23 	lease agreements; assistance with publicly 
104.24 	financed housing options; development of 
104.25 	household budgets; and assistance with 
104.26 	funding affordable furnishings and related 
104.27 	household matters.
104.28 	HIV Grants. The general fund appropriation 
104.29 	for the HIV drug and insurance grant 
104.30 	program shall be reduced by $2,425,000 in 
104.31 	fiscal year 2012 and increased by $2,425,000 
104.32 	in fiscal year 2014. These adjustments are 
104.33 	onetime and shall not be applied to the base. 
104.34 	Notwithstanding any contrary provision, this 
104.35 	provision expires June 30, 2014.
105.1 	Region 10. Of this appropriation, $100,000 
105.2 	each year is for a grant provided under 
105.3 	Minnesota Statutes, section 256B.097.
105.4 	Base Level Adjustment. The general fund 
105.5 	base is increased by $2,944,000 in fiscal year 
105.6 	2014 and $653,000 in fiscal year 2015.
105.7 	Local Planning Grants for Creating 
105.8 	Alternatives to Congregate Living for 
105.9 	Individuals with Lower Needs. Of this 
105.10 	appropriation, $100,000 in fiscal year 2013 
105.11 	is for administrative functions related to the 
105.12 	need determination and planning process 
105.13 	required under Minnesota Statutes, sections 
105.14 	144A.351 and 245A.03, subdivision 7, 
105.15 	paragraphs (e) and (f). The commissioner 
105.16 	shall make available a total of $250,000 per 
105.17 	year $400,000 in local and regional planning 
105.18 	grants, beginning July 1, 2011 2012, to assist 
105.19 	lead agencies and provider organizations in 
105.20 	developing alternatives to congregate living 
105.21 	within the available level of resources for the 
105.22 	home and community-based services waivers 
105.23 	for persons with disabilities.
105.24 	Disability Linkage Line. Of this 
105.25 	appropriation, $125,000 in fiscal year 2012 
105.26 	and $300,000 in fiscal year 2013 are for 
105.27 	assistance to people with disabilities who are 
105.28 	considering enrolling in managed care.

105.29	(l) Adult Mental Health Grants

105.30	Appropriations by Fund
	
105.31	General
	70,570,000
	70,570,000
	
105.32	Health Care Access
	750,000
	750,000
	
105.33	Lottery Prize
	1,508,000
	1,508,000
	
105.34 	Funding Usage. Up to 75 percent of a fiscal 
105.35 	year's appropriation for adult mental health 
106.1 	grants may be used to fund allocations in that 
106.2 	portion of the fiscal year ending December 
106.3 	31.
106.4 	Base Adjustment. The general fund base is 
106.5 	increased by $200,000 in fiscal years 2014 
106.6 	and 2015.

106.7	(m) Children's Mental Health Grants
		16,457,000
		16,457,000
	
106.8 	Funding Usage. Up to 75 percent of a fiscal 
106.9 	year's appropriation for children's mental 
106.10 	health grants may be used to fund allocations 
106.11 	in that portion of the fiscal year ending 
106.12 	December 31.
106.13 	Base Adjustment. The general fund base is 
106.14 	increased by $225,000 in fiscal years 2014 
106.15 	and 2015.

106.16
106.17	(n) Chemical Dependency Nonentitlement 
Grants
		1,336,000
		1,336,000

106.18 	Sec. 34. INDEPENDENT LIVING SERVICES BILLING.
 106.19 	The commissioner shall allow for daily rate and 15-minute increment billing for 
106.20 	independent living services under the brain injury (BI) and CADI waivers. If necessary to 
106.21 	comply with this requirement, the commissioner shall submit a waiver amendment to the 
106.22 	state plan no later than December 31, 2012.

106.23 	Sec. 35. COMMUNITY FIRST CHOICE OPTION.
 106.24 	(a) If the final federal regulations under Community First Choice Option are 
106.25 	determined by the commissioner, after consultation with interested stakeholders in 
106.26 	paragraph (d), to be compatible with Minnesota's fiscal neutrality and policy requirements 
106.27 	for redesigning and simplifying the personal care assistance program, assistance at home 
106.28 	and in the community provided through the home and community-based services with 
106.29 	waivers, state-funded grants, and medical assistance-funded services and programs, the 
106.30 	commissioner shall develop and request a state plan amendment to establish services, 
106.31 	including self-directed options, under section 1915k of the Social Security Act by January 
106.32 	15, 2013, for implementation on July 1, 2013.
107.1 	(b) The commissioner shall develop and provide to the chairs of the health and 
107.2 	human services policy and finance committees, legislation needed to reform and simplify 
107.3 	home care, home and community-based services waivers, and other community support 
107.4 	services under the Community First Choice Option by February 15, 2013.
107.5 	(c) Any savings generated by this option shall accrue to the commissioner for 
107.6 	development and implementation of community support services under the Community 
107.7 	First Choice Option.
107.8 	(d) The commissioner shall consult with stakeholders, including persons with 
107.9 	disabilities and seniors, who represent a range of disabilities, ages, cultures, and 
107.10 	geographic locations, their families and guardians, as well as representatives of advocacy 
107.11 	organizations, lead agencies, direct support staff, labor unions, and a variety of service 
107.12 	provider groups.

107.13 	Sec. 36. COMMISSIONER AUTHORITY TO REDUCE 2011 CONGREGATE 
107.14 	CARE LOW NEED RATE CUT.
 107.15 	During fiscal years 2013 and 2014, the commissioner shall reduce the 2011 reduction 
107.16 	of rates for congregate living for individuals with lower needs to the extent actions taken 
107.17 	under Minnesota Statutes, section 245A.03, subdivision 7, paragraph (f), produce savings 
107.18 	beyond the amount needed to meet the licensed bed closure savings requirements of 
107.19 	Minnesota Statutes, section 245A.03, subdivision 7, paragraph (e). Each February 1, the 
107.20 	commissioner shall report to the chairs of the legislative committees with jurisdiction over 
107.21 	health and human services finance on any reductions provided under this section. This 
107.22 	section is effective on July 1, 2012, and expires on June 30, 2014.

107.23 	Sec. 37. HOME AND COMMUNITY-BASED SERVICES WAIVERS 
107.24 	AMENDMENT FOR EXCEPTION.
 107.25 	(a) By September 1, 2012, the commissioner of human services shall submit 
107.26 	amendments to the home and community-based waiver plans consistent with the definition 
107.27 	of home and community-based settings under Minnesota Statutes, section 256B.492, 
107.28 	including a request to allow an exception for those settings that serve persons with 
107.29 	disabilities under a home and community-based service waiver in more than 25 percent 
107.30 	of the units in a building as of January 1, 2012, but otherwise meet the definition under 
107.31 	Minnesota Statutes, section 256B.492.
107.32 	(b) Notwithstanding paragraph (a), a program in Hennepin County established as 
107.33 	part of a Hennepin County demonstration project by January 1, 2013, is qualified for 
107.34 	the exception allowed under paragraph (a).

108.1 	Sec. 38. COMMISSIONER TO SEEK AMENDMENT FOR EXCEPTION 
108.2 	TO CONSUMER-DIRECTED COMMUNITY SUPPORTS BUDGET 
108.3 	METHODOLOGY.
 108.4 	By July 1, 2012,  the commissioner of human services shall request an amendment 
108.5 	to the home and community-based services waiver for persons with developmental 
108.6 	disabilities to establish an exception to the consumer-directed community supports budget 
108.7 	methodology to provide up to 20 percent more funds for those participants who have 
108.8 	their 21st birthday and graduate from high school during  2013 and 2014 and are enrolled 
108.9 	in consumer-directed community supports prior to graduation.  The exception  may be 
108.10 	provided to those who can demonstrate that they will have to leave consumer-directed 
108.11 	community supports and use traditional agency services because their needs for services 
108.12 	during the day cannot be met within the consumer-directed community supports budget 
108.13 	limits.  Specific criteria and data to be evaluated  for this exception will be developed in 
108.14 	consultation with the consumer-directed community supports stakeholders group prior to 
108.15 	submission of the waiver amendment.  The experience with this exception shall be used 
108.16 	to make changes to the consumer-directed community supports budget methodology to 
108.17 	better accommodate the needs of those who transition from school to adult services.   The 
108.18 	exception process shall be effective upon federal approval for persons eligible during 2013 
108.19 	and 2014.  Participants will have access to the higher allocation for up to three years and 
108.20 	their plan will be reviewed yearly to determine if additional dollars are needed.

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

108.22 	Sec. 39. DIRECTION TO OMBUDSMAN FOR LONG-TERM CARE.
 108.23 	The ombudsman for long-term care shall:
108.24 	(1) research the existence of differential treatment based on source of payment in 
108.25 	assisted living settings;
108.26 	(2) convene stakeholders to provide technical assistance and expertise in studying 
108.27 	and addressing these issues, including but not limited to consumers, health care and 
108.28 	housing providers, advocates representing seniors and younger persons with disabilities or 
108.29 	mental health challenges, county representatives, and representatives of the Departments 
108.30 	of Health and Human Services; and
108.31 	(3) submit a report of findings to the legislature no later than January 31, 2013, 
108.32 	with recommendations for the development of policies and procedures to prevent and 
108.33 	remedy instances of discrimination based on participation in or potential eligibility for 
108.34 	medical assistance.

109.1 	ARTICLE 5
109.2 	MINNESOTA CHILDREN AND FAMILY INVESTMENT PROGRAM

109.3 	Section 1. CITATION.
 109.4 	Sections 2 to 7 may be cited as the "Minnesota Children and Family Investment 
109.5 	Program Act."

109.6 	Sec. 2. Minnesota Statutes 2010, section 256J.08, is amended by adding a subdivision 
109.7 	to read:
109.8 		Subd. 11b.Child well-being. "Child well-being" means a child's developmental 
109.9 	progress relative to the child's age, including cognitive, physical, emotional, and social 
109.10 	development as measured through developmental screening tools, school achievement, 
109.11 	health status, and other relevant standardized measures of development.

109.12 	Sec. 3. Minnesota Statutes 2010, section 256J.45, subdivision 2, is amended to read:
109.13 		Subd. 2.General information. (a) The MFIP orientation must consist of a 
109.14 	presentation that informs caregivers of:
109.15 	(1) the necessity to obtain immediate employment;
109.16 	(2) the work incentives under MFIP, including the availability of the federal earned 
109.17 	income tax credit and the Minnesota working family tax credit;
109.18 	(3) the requirement to comply with the employment plan and other requirements 
109.19 	of the employment and training services component of MFIP, including a description 
109.20 	of the range of work and training activities that are allowable under MFIP to meet the 
109.21 	individual needs of participants;
109.22 	(4) the consequences for failing to comply with the employment plan and other 
109.23 	program requirements, and that the county agency may not impose a sanction when failure 
109.24 	to comply is due to the unavailability of child care or other circumstances where the 
109.25 	participant has good cause under subdivision 3;
109.26 	(5) the rights, responsibilities, and obligations of participants;
109.27 	(6) the types and locations of child care services available through the county agency;
109.28 	(7) the availability and the benefits of the early childhood health and developmental 
109.29 	screening under sections 121A.16 to 121A.19; 123B.02, subdivision 16; and 123B.10;
109.30 	(8) the caregiver's eligibility for transition year child care assistance under section 
109.31 	119B.05;
109.32 	(9) the availability of all health care programs, including transitional medical 
109.33 	assistance;
110.1 	(10) the caregiver's option to choose an employment and training provider and 
110.2 	information about each provider, including but not limited to, services offered, program 
110.3 	components, job placement rates, job placement wages, and job retention rates;
110.4 	(11) the caregiver's option to request approval of an education and training plan 
110.5 	according to section 256J.53;
110.6 	(12) the work study programs available under the higher education system; and
110.7 	(13) information about the 60-month time limit exemptions under the family 
110.8 	violence waiver and referral information about shelters and programs for victims of family 
110.9 	violence.; and
110.10 	(14) the availability and benefits of early childhood health and developmental 
110.11 	screening and other early childhood resources and programs.
110.12 	(b) For MFIP caregivers who are exempt from attending the orientation under 
110.13 	subdivision 1, the county agency must provide the information required under paragraph 
110.14 	(a), clause (14), via other means.

110.15 	Sec. 4. Minnesota Statutes 2011 Supplement, section 256J.49, subdivision 13, is 
110.16 	amended to read:
110.17 		Subd. 13.Work activity. (a) "Work activity" means any activity in a participant's 
110.18 	approved employment plan that leads to employment. For purposes of the MFIP program, 
110.19 	this includes activities that meet the definition of work activity under the participation 
110.20 	requirements of TANF. Work activity includes:
110.21 	(1) unsubsidized employment, including work study and paid apprenticeships or 
110.22 	internships;
110.23 	(2) subsidized private sector or public sector employment, including grant diversion 
110.24 	as specified in section 256J.69, on-the-job training as specified in section 256J.66, paid 
110.25 	work experience, and supported work when a wage subsidy is provided;
110.26 	(3) unpaid work experience, including community service, volunteer work, 
110.27 	the community work experience program as specified in section 256J.67, unpaid 
110.28 	apprenticeships or internships, and supported work when a wage subsidy is not provided. 
110.29 	Unpaid work experience is only an option if the participant has been unable to obtain or 
110.30 	maintain paid employment in the competitive labor market, and no paid work experience 
110.31 	programs are available to the participant. Prior to placing a participant in unpaid work, 
110.32 	the county must inform the participant that the participant will be notified if a paid work 
110.33 	experience or supported work position becomes available. Unless a participant consents in 
110.34 	writing to participate in unpaid work experience, the participant's employment plan may 
111.1 	only include unpaid work experience if including the unpaid work experience in the plan 
111.2 	will meet the following criteria:
111.3 	(i) the unpaid work experience will provide the participant specific skills or 
111.4 	experience that cannot be obtained through other work activity options where the 
111.5 	participant resides or is willing to reside; and
111.6 	(ii) the skills or experience gained through the unpaid work experience will result 
111.7 	in higher wages for the participant than the participant could earn without the unpaid 
111.8 	work experience;
111.9 	(4) job search including job readiness assistance, job clubs, job placement, 
111.10 	job-related counseling, and job retention services;
111.11 	(5) job readiness education, including English as a second language (ESL) or 
111.12 	functional work literacy classes as limited by the provisions of section 256J.531, 
111.13 	subdivision 2, general educational development (GED) course work, high school 
111.14 	completion, and adult basic education as limited by the provisions of section 256J.531, 
111.15 	subdivision 1;
111.16 	(6) job skills training directly related to employment, including education and 
111.17 	training that can reasonably be expected to lead to employment, as limited by the 
111.18 	provisions of section 256J.53;
111.19 	(7) providing child care services to a participant who is working in a community 
111.20 	service program;
111.21 	(8) activities included in the employment plan that is developed under section 
111.22 	256J.521, subdivision 3; and
111.23 	(9) preemployment activities including chemical and mental health assessments, 
111.24 	treatment, and services; learning disabilities services; child protective services; family 
111.25 	stabilization services; or other programs designed to enhance employability.; and
111.26 	(10) attending a child's early childhood activities, including developmental 
111.27 	screenings and subsequent referral and follow-up services. MFIP employment and training 
111.28 	providers must coordinate with county social service agencies and health plans to assist 
111.29 	recipients in arranging referrals indicated by screening results.
111.30 	(b) "Work activity" does not include activities done for political purposes as defined 
111.31 	in section 211B.01, subdivision 6.

111.32 	Sec. 5. Minnesota Statutes 2010, section 256J.50, is amended by adding a subdivision 
111.33 	to read:
112.1 		Subd. 13.Child development information. MFIP employment and training 
112.2 	providers and county agencies shall post information regarding child development in areas 
112.3 	easily accessible to families participating in MFIP.

112.4 	Sec. 6. Minnesota Statutes 2010, section 256J.521, subdivision 2, is amended to read:
112.5 		Subd. 2.Employment plan; contents. (a) Based on the assessment under 
112.6 	subdivision 1, the job counselor and the participant must develop an employment plan 
112.7 	that includes participation in activities and hours that meet the requirements of section 
112.8 	256J.55, subdivision 1. The purpose of the employment plan is to identify for each 
112.9 	participant the most direct path to unsubsidized employment and any subsequent steps that 
112.10 	support long-term economic stability. The employment plan should be developed using 
112.11 	the highest level of activity appropriate for the participant. Activities must be chosen from 
112.12 	clauses (1) to (6), which are listed in order of preference. Notwithstanding this order of 
112.13 	preference for activities, priority must be given for activities related to a family violence 
112.14 	waiver when developing the employment plan. The employment plan must also list the 
112.15 	specific steps the participant will take to obtain employment, including steps necessary 
112.16 	for the participant to progress from one level of activity to another, and a timetable for 
112.17 	completion of each step. Levels of activity include:
112.18 	(1) unsubsidized employment;
112.19 	(2) job search;
112.20 	(3) subsidized employment or unpaid work experience;
112.21 	(4) unsubsidized employment and job readiness education or job skills training;
112.22 	(5) unsubsidized employment or unpaid work experience and activities related to 
112.23 	a family violence waiver or preemployment needs; and
112.24 	(6) activities related to a family violence waiver or preemployment needs.
112.25 	(b) Participants who are determined to possess sufficient skills such that the 
112.26 	participant is likely to succeed in obtaining unsubsidized employment must job search at 
112.27 	least 30 hours per week for up to six weeks and accept any offer of suitable employment. 
112.28 	The remaining hours necessary to meet the requirements of section 256J.55, subdivision 
112.29 	1, may be met through participation in other work activities under section 256J.49, 
112.30 	subdivision 13. The participant's employment plan must specify, at a minimum: (1) 
112.31 	whether the job search is supervised or unsupervised; (2) support services that will 
112.32 	be provided; and (3) how frequently the participant must report to the job counselor. 
112.33 	Participants who are unable to find suitable employment after six weeks must meet 
112.34 	with the job counselor to determine whether other activities in paragraph (a) should be 
113.1 	incorporated into the employment plan. Job search activities which are continued after six 
113.2 	weeks must be structured and supervised.
113.3 	(c) Participants who are determined to have barriers to obtaining or maintaining 
113.4 	suitable employment that will not be overcome during six weeks of job search under 
113.5 	paragraph (b) must work with the job counselor to develop an employment plan that 
113.6 	addresses those barriers by incorporating appropriate activities from paragraph (a), clauses 
113.7 	(1) to (6). The employment plan must include enough hours to meet the participation 
113.8 	requirements in section 256J.55, subdivision 1, unless a compelling reason to require 
113.9 	fewer hours is noted in the participant's file.
113.10 	(d) The job counselor and the participant must sign the employment plan to indicate 
113.11 	agreement on the contents.
113.12 	(e) Except as provided under paragraph (f), failure to develop or comply with 
113.13 	activities in the plan, or voluntarily quitting suitable employment without good cause, will 
113.14 	result in the imposition of a sanction under section 256J.46.
113.15 	(f) When a participant fails to meet the agreed-upon hours of participation in paid 
113.16 	employment because the participant is not eligible for holiday pay and the participant's 
113.17 	place of employment is closed for a holiday, the job counselor shall not impose a sanction 
113.18 	or increase the hours of participation in any other activity, including paid employment, to 
113.19 	offset the hours that were missed due to the holiday.
113.20 	(g) Employment plans must be reviewed at least every three months to determine 
113.21 	whether activities and hourly requirements should be revised. At the time of the 
113.22 	employment plan review, the job counselor must provide information to participants 
113.23 	regarding early childhood development and resources for families. The job counselor 
113.24 	is encouraged to allow participants who are participating in at least 20 hours of work 
113.25 	activities to also participate in education and training activities in order to meet the federal 
113.26 	hourly participation rates.

113.27 	Sec. 7. REVISOR INSTRUCTION.
 113.28 	In Minnesota Statutes and Minnesota Rules, the revisor of statutes shall substitute 
113.29 	the terms "Minnesota Children and Family Investment Program" for "Minnesota Family 
113.30 	Investment Program" and "MCFIP" for "MFIP" wherever they appear.

113.31 	ARTICLE 6
113.32 	MISCELLANEOUS

113.33 	Section 1. Minnesota Statutes 2010, section 245.697, subdivision 1, is amended to read:
114.1 		Subdivision 1.Creation. (a) A State Advisory Council on Mental Health is created. 
114.2 	The council must have 30 31 members appointed by the governor in accordance with 
114.3 	federal requirements. In making the appointments, the governor shall consider appropriate 
114.4 	representation of communities of color. The council must be composed of:
114.5 	(1) the assistant commissioner of mental health for the department of human services;
114.6 	(2) a representative of the Department of Human Services responsible for the 
114.7 	medical assistance program;
114.8 	(3) one member of each of the four five core mental health professional disciplines 
114.9 	(psychiatry, psychology, social work, nursing, and marriage and family therapy);
114.10 	(4) one representative from each of the following advocacy groups: Mental Health 
114.11 	Association of Minnesota, NAMI-MN, Mental Health Consumer/Survivor Network of 
114.12 	Minnesota, and Minnesota Disability Law Center;
114.13 	(5) providers of mental health services;
114.14 	(6) consumers of mental health services;
114.15 	(7) family members of persons with mental illnesses;
114.16 	(8) legislators;
114.17 	(9) social service agency directors;
114.18 	(10) county commissioners; and
114.19 	(11) other members reflecting a broad range of community interests, including 
114.20 	family physicians, or members as the United States Secretary of Health and Human 
114.21 	Services may prescribe by regulation or as may be selected by the governor.
114.22 	(b) The council shall select a chair. Terms, compensation, and removal of members 
114.23 	and filling of vacancies are governed by section 15.059. Notwithstanding provisions 
114.24 	of section 15.059, the council and its subcommittee on children's mental health do not 
114.25 	expire. The commissioner of human services shall provide staff support and supplies 
114.26 	to the council.

114.27 	Sec. 2. Minnesota Statutes 2010, section 254A.19, is amended by adding a subdivision 
114.28 	to read:
114.29 		Subd. 4.Civil commitments. A Rule 25 assessment, under Minnesota Rules, 
114.30 	part 9530.6615, does not need to be completed for an individual being committed as a 
114.31 	chemically dependent person, as defined in section 253B.02, and for the duration of a civil 
114.32 	commitment under section 253B.065, 253B.09, or 253B.095 in order for a county to 
114.33 	access consolidated chemical dependency treatment funds under section 254B.04. The 
114.34 	county must determine if the individual meets the financial eligibility requirements for 
114.35 	the consolidated chemical dependency treatment funds under section 254B.04. Nothing 
115.1 	in this subdivision shall prohibit placement in a treatment facility or treatment program 
115.2 	governed under this chapter or Minnesota Rules, parts 9530.6600 to 9530.6655.

115.3 	Sec. 3. Minnesota Statutes 2010, section 256B.0943, subdivision 9, is amended to read:
115.4 		Subd. 9.Service delivery criteria. (a) In delivering services under this section, a 
115.5 	certified provider entity must ensure that:
115.6 	(1) each individual provider's caseload size permits the provider to deliver services 
115.7 	to both clients with severe, complex needs and clients with less intensive needs. The 
115.8 	provider's caseload size should reasonably enable the provider to play an active role in 
115.9 	service planning, monitoring, and delivering services to meet the client's and client's 
115.10 	family's needs, as specified in each client's individual treatment plan;
115.11 	(2) site-based programs, including day treatment and preschool programs, provide 
115.12 	staffing and facilities to ensure the client's health, safety, and protection of rights, and that 
115.13 	the programs are able to implement each client's individual treatment plan;
115.14 	(3) a day treatment program is provided to a group of clients by a multidisciplinary 
115.15 	team under the clinical supervision of a mental health professional. The day treatment 
115.16 	program must be provided in and by: (i) an outpatient hospital accredited by the Joint 
115.17 	Commission on Accreditation of Health Organizations and licensed under sections 144.50 
115.18 	to 144.55; (ii) a community mental health center under section 245.62; or (iii) an entity 
115.19 	that is under contract with the county board certified under subdivision 4 to operate a 
115.20 	program that meets the requirements of section 245.4712, subdivision 2, or 245.4884, 
115.21 	subdivision 2, and Minnesota Rules, parts 9505.0170 to 9505.0475. The day treatment 
115.22 	program must stabilize the client's mental health status while developing and improving 
115.23 	the client's independent living and socialization skills. The goal of the day treatment 
115.24 	program must be to reduce or relieve the effects of mental illness and provide training to 
115.25 	enable the client to live in the community. The program must be available at least one day 
115.26 	a week for a two-hour time block. The two-hour time block must include at least one hour 
115.27 	of individual or group psychotherapy. The remainder of the structured treatment program 
115.28 	may include individual or group psychotherapy, and individual or group skills training, if 
115.29 	included in the client's individual treatment plan. Day treatment programs are not part of 
115.30 	inpatient or residential treatment services. A day treatment program may provide fewer 
115.31 	than the minimally required hours for a particular child during a billing period in which 
115.32 	the child is transitioning into, or out of, the program; and
115.33 	(4) a therapeutic preschool program is a structured treatment program offered 
115.34 	to a child who is at least 33 months old, but who has not yet reached the first day of 
115.35 	kindergarten, by a preschool multidisciplinary team in a day program licensed under 
116.1 	Minnesota Rules, parts 9503.0005 to 9503.0175. The program must be available two 
116.2 	hours per day, five days per week, and 12 months of each calendar year. The structured 
116.3 	treatment program may include individual or group psychotherapy and individual or 
116.4 	group skills training, if included in the client's individual treatment plan. A therapeutic 
116.5 	preschool program may provide fewer than the minimally required hours for a particular 
116.6 	child during a billing period in which the child is transitioning into, or out of, the program.
116.7 	(b) A provider entity must deliver the service components of children's therapeutic 
116.8 	services and supports in compliance with the following requirements:
116.9 	(1) individual, family, and group psychotherapy must be delivered as specified in 
116.10 	Minnesota Rules, part 9505.0323;
116.11 	(2) individual, family, or group skills training must be provided by a mental health 
116.12 	professional or a mental health practitioner who has a consulting relationship with a 
116.13 	mental health professional who accepts full professional responsibility for the training;
116.14 	(3) crisis assistance must be time-limited and designed to resolve or stabilize crisis 
116.15 	through arrangements for direct intervention and support services to the child and the 
116.16 	child's family. Crisis assistance must utilize resources designed to address abrupt or 
116.17 	substantial changes in the functioning of the child or the child's family as evidenced by 
116.18 	a sudden change in behavior with negative consequences for well being, a loss of usual 
116.19 	coping mechanisms, or the presentation of danger to self or others;
116.20 	(4) mental health behavioral aide services must be medically necessary treatment 
116.21 	services, identified in the child's individual treatment plan and individual behavior plan, 
116.22 	which are performed minimally by a paraprofessional qualified according to subdivision 
116.23 	7, paragraph (b), clause (3), and which are designed to improve the functioning of the 
116.24 	child in the progressive use of developmentally appropriate psychosocial skills. Activities 
116.25 	involve working directly with the child, child-peer groupings, or child-family groupings 
116.26 	to practice, repeat, reintroduce, and master the skills defined in subdivision 1, paragraph 
116.27 	(p), as previously taught by a mental health professional or mental health practitioner 
116.28 	including:
116.29 	(i) providing cues or prompts in skill-building peer-to-peer or parent-child 
116.30 	interactions so that the child progressively recognizes and responds to the cues 
116.31 	independently;
116.32 	(ii) performing as a practice partner or role-play partner;
116.33 	(iii) reinforcing the child's accomplishments;
116.34 	(iv) generalizing skill-building activities in the child's multiple natural settings;
116.35 	(v) assigning further practice activities; and
117.1 	(vi) intervening as necessary to redirect the child's target behavior and to de-escalate 
117.2 	behavior that puts the child or other person at risk of injury.
117.3 	A mental health behavioral aide must document the delivery of services in written 
117.4 	progress notes. The mental health behavioral aide must implement treatment strategies 
117.5 	in the individual treatment plan and the individual behavior plan. The mental health 
117.6 	behavioral aide must document the delivery of services in written progress notes. Progress 
117.7 	notes must reflect implementation of the treatment strategies, as performed by the mental 
117.8 	health behavioral aide and the child's responses to the treatment strategies; and
117.9 	(5) direction of a mental health behavioral aide must include the following:
117.10 	(i) a clinical supervision plan approved by the responsible mental health professional;
117.11 	(ii) ongoing on-site observation by a mental health professional or mental health 
117.12 	practitioner for at least a total of one hour during every 40 hours of service provided 
117.13 	to a child; and
117.14 	(iii) immediate accessibility of the mental health professional or mental health 
117.15 	practitioner to the mental health behavioral aide during service provision.

117.16 	Sec. 4. Minnesota Statutes 2011 Supplement, section 256M.40, subdivision 1, is 
117.17 	amended to read:
117.18 		Subdivision 1.Formula. The commissioner shall allocate state funds appropriated 
117.19 	under this chapter to each county board on a calendar year basis in an amount determined 
117.20 	according to the formula in paragraphs (a) to (e) (f).
117.21 	(a) For calendar years 2011 and, 2012,  and 2013, the commissioner shall allocate 
117.22 	available funds to each county in proportion to that county's share in calendar year 2010.
117.23 	(b) For calendar year 2013 2014, the commissioner shall allocate available funds to 
117.24 	each county as follows:
117.25 	(1) 75 80 percent must be distributed on the basis of the county share in calendar 
117.26 	year 2012 2013;
117.27 	(2) five percent must be distributed on the basis of the number of persons residing in 
117.28 	the county as determined by the most recent data of the state demographer;
117.29 	(3) ten percent must be distributed on the basis of the number of vulnerable children 
117.30 	that are subjects of reports under chapter 260C and sections 626.556 and 626.5561, and in 
117.31 	the county as determined by the most recent data of the commissioner; and
117.32 	(4) ten percent must be distributed on the basis of the number of vulnerable adults 
117.33 	that are subjects of reports under section 626.557 in the county as determined by the most 
117.34 	recent data of the commissioner.
117.35 	(2) 20 percent must be distributed as follows:
118.1 	(i) 25 percent must be allocated to cover infrastructure costs for grant implementation 
118.2 	which includes a guaranteed floor and an amount based on the county's population size 
118.3 	as determined by the commissioner; and
118.4 	(ii) 75 percent must be allocated based on the need for vulnerable children and 
118.5 	adult services as follows:
118.6 	(A) 70 percent shall be allocated to counties based on the county's average three-year 
118.7 	count of vulnerable children who are subjects of family assessments or subjects of 
118.8 	accepted reports under sections 626.556 and 626.5561 per 1,000 county child population 
118.9 	as determined by the most recent data of the commissioner; and
118.10 	(B) 30 percent shall be allocated to counties based on the county's average three-year 
118.11 	count of vulnerable adults who are subjects of reports accepted for county investigation or 
118.12 	emergency protective services under section 626.557 per 1,000 county adult population 
118.13 	determined by the most recent data of the commissioner.
118.14 	(c) For calendar year 2014 2015, the commissioner shall allocate available funds to 
118.15 	each county as follows:
118.16 	(1) 50 60 percent must be distributed on the basis of the county share in calendar 
118.17 	year 2012 2013; and
118.18 	(2) Ten percent must be distributed on the basis of the number of persons residing in 
118.19 	the county as determined by the most recent data of the state demographer;
118.20 	(3) 20 percent must be distributed on the basis of the number of vulnerable children 
118.21 	that are subjects of reports under chapter 260C and sections 626.556 and 626.5561, in the 
118.22 	county as determined by the most recent data of the commissioner; and
118.23 	(4) 20 percent must be distributed on the basis of the number of vulnerable adults 
118.24 	that are subjects of reports under section 626.557 in the county as determined by the most 
118.25 	recent data of the commissioner.
118.26 	(2) 40 percent must be distributed as follows:
118.27 	(i) 25 percent must be allocated to cover infrastructure costs for grant implementation 
118.28 	which includes a guaranteed floor and an amount based on the county's population size 
118.29 	as determined by the commissioner; and
118.30 	(ii) 75 percent must be allocated based on the need for vulnerable children and 
118.31 	adult services as follows:
118.32 	(A) 70 percent shall be allocated to counties based on the county's average three-year 
118.33 	count of vulnerable children who are subjects of family assessments or subjects of 
118.34 	accepted reports under sections 626.556 and 626.5561 per 1,000 county child population 
118.35 	as determined by the most recent data of the commissioner; and
119.1 	(B) 30 percent shall be allocated to counties based on the county's average three-year 
119.2 	count of vulnerable adults who are subjects of reports accepted for county investigation or 
119.3 	emergency protective services under section 626.557 per 1,000 county adult population 
119.4 	determined by the most recent data of the commissioner.
119.5 	(d) For calendar year 2015 2016, the commissioner shall allocate available funds to 
119.6 	each county as follows:
119.7 	(1) 25 40 percent must be distributed on the basis of the county share in calendar 
119.8 	year 2012 2013; and
119.9 	(2) 15 percent must be distributed on the basis of the number of persons residing in 
119.10 	the county as determined by the most recent data of the state demographer;
119.11 	(3) 30 percent must be distributed on the basis of the number of vulnerable children 
119.12 	that are subjects of reports under chapter 260C and sections 626.556 and 626.5561, in the 
119.13 	county as determined by the most recent data of the commissioner; and
119.14 	(4) 30 percent must be distributed on the basis of the number of vulnerable adults 
119.15 	that are subjects of reports under section 626.557 in the county as determined by the most 
119.16 	recent data of the commissioner.
119.17 	(2) 60 percent must be distributed as follows:
119.18 	(i) 25 percent must be allocated to cover infrastructure costs for grant implementation 
119.19 	which includes a guaranteed floor and an amount based on the county's population size 
119.20 	as determined by the commissioner; and
119.21 	(ii) 75 percent must be allocated based on the need for vulnerable children and 
119.22 	adult services as follows:
119.23 	(A) 70 percent shall be allocated to counties based on the county's average three-year 
119.24 	count of vulnerable children who are subjects of family assessments or subjects of 
119.25 	accepted reports under sections 626.556 and 626.5561 per 1,000 county child population 
119.26 	as determined by the most recent data of the commissioner; and
119.27 	(B) 30 percent shall be allocated to counties based on the county's average three-year 
119.28 	count of vulnerable adults who are subjects of reports accepted for county investigation or 
119.29 	emergency protective services under section 626.557 per 1,000 county adult population 
119.30 	determined by the most recent data of the commissioner.
119.31 	(e) For calendar year 2016 and each calendar year thereafter 2017, the commissioner 
119.32 	shall allocate available funds to each county as follows:
119.33 	(1) 20 percent must be distributed on the basis of the number of persons residing 
119.34 	in the county as determined by the most recent data of the state demographer county 
119.35 	share in calendar year 2013; and
120.1 	(2) 40 percent must be distributed on the basis of the number of vulnerable children 
120.2 	that are subjects of reports under chapter 260C and sections 626.556 and 626.5561, in the 
120.3 	county as determined by the most recent data of the commissioner; and
120.4 	(3) 40 percent must be distributed on the basis of the number of vulnerable adults 
120.5 	that are subjects of reports under section 626.557 in the county as determined by the most 
120.6 	recent data of the commissioner.
120.7 	(2) 80 percent must be distributed as follows:
120.8 	(i) 25 percent must be allocated to cover infrastructure costs for grant implementation 
120.9 	which includes a guaranteed floor and an amount based on the county's population size 
120.10 	as determined by the commissioner; and
120.11 	(ii) 75 percent must be allocated based on the need for vulnerable children and 
120.12 	adult services as follows:
120.13 	(A) 70 percent shall be allocated to counties based on the county's average three-year 
120.14 	count of vulnerable children who are subjects of family assessments or subjects of 
120.15 	accepted reports under sections 626.556 and 626.5561 per 1,000 county child population 
120.16 	as determined by the most recent data of the commissioner; and
120.17 	(B) 30 percent shall be allocated to counties based on the county's average three-year 
120.18 	count of vulnerable adults who are subjects of reports accepted for county investigation or 
120.19 	emergency protective services under section 626.557 per 1,000 county adult population 
120.20 	determined by the most recent data of the commissioner.
120.21 	(f) For calendar year 2018 and each calendar year thereafter, the commissioner shall 
120.22 	allocate available funds to each county as follows:
120.23 	(1) 25 percent must be allocated to cover infrastructure costs for grant 
120.24 	implementation which includes a guaranteed floor and an amount based on the county's 
120.25 	population size as determined by the commissioner; and
120.26 	(2) 75 percent must be allocated based on the need for vulnerable children and 
120.27 	adult services as follows:
120.28 	(i) 70 percent shall be allocated to counties based on the county's average three-year 
120.29 	count of vulnerable children that are subject of family assessments or subjects of accepted 
120.30 	reports under sections 626.556 and 626.5561 per 1,000 county child population as 
120.31 	determined by the most recent data of the commissioner; and
120.32 	(ii) 30 percent shall be allocated to counties based on the county's average three-year 
120.33 	count of vulnerable adults that are subjects of reports accepted for county investigation or 
120.34 	emergency protective services under section 626.557 per 1,000 county adult population 
120.35 	determined by the most recent data of the commissioner.

121.1 	Sec. 5. Minnesota Statutes 2010, section 462A.29, is amended to read:
121.2 	462A.29 INTERAGENCY COORDINATION ON HOMELESSNESS.
121.3 	(a) The agency shall coordinate services and activities of all state agencies relating 
121.4 	to homelessness. The agency shall coordinate an investigation and review of the current 
121.5 	system of service delivery to the homeless. The agency may request assistance from other 
121.6 	agencies of state government as needed for the execution of the responsibilities under this 
121.7 	section and the other agencies shall furnish the assistance upon request.
121.8 	(b) The Interagency Council on Homelessness established to assist with the 
121.9 	execution of the duties of this section shall give priority to improving the coordination 
121.10 	of services and activities that reduce the number of children and military veterans who 
121.11 	experience homelessness and improve the economic, health, social, and education 
121.12 	outcomes for children and military veterans who experience homelessness.

121.13 	Sec. 6. Minnesota Statutes 2010, section 518A.40, subdivision 4, is amended to read:
121.14 		Subd. 4.Change in child care. (a) When a court order provides for child care 
121.15 	expenses, and child care support is not assigned under section 256.741, the public 
121.16 	authority, if the public authority provides child support enforcement services, must may
121.17 	suspend collecting the amount allocated for child care expenses when:
121.18 	(1) either party informs the public authority that no child care costs are being 
121.19 	incurred; and:
121.20 	(2) (1) the public authority verifies the accuracy of the information with the obligee.; 
121.21 	or
121.22 	(2) the obligee fails to respond within 30 days of the date of a written request 
121.23 	from the public authority for information regarding child care costs. A written or oral 
121.24 	response from the obligee that child care costs are being incurred is sufficient for the 
121.25 	public authority to continue collecting child care expenses.
121.26 	The suspension is effective as of the first day of the month following the date that the 
121.27 	public authority received the verification either verified the information with the obligee 
121.28 	or the obligee failed to respond. The public authority will resume collecting child care 
121.29 	expenses when either party provides information that child care costs have resumed are 
121.30 	incurred, or when a child care support assignment takes effect under section 256.741, 
121.31 	subdivision 4. The resumption is effective as of the first day of the month after the date 
121.32 	that the public authority received the information.
121.33 	(b) If the parties provide conflicting information to the public authority regarding 
121.34 	whether child care expenses are being incurred, or if the public authority is unable to 
121.35 	verify with the obligee that no child care costs are being incurred, the public authority will 
122.1 	continue or resume collecting child care expenses. Either party, by motion to the court, 
122.2 	may challenge the suspension, continuation, or resumption of the collection of child care 
122.3 	expenses under this subdivision. If the public authority suspends collection activities 
122.4 	for the amount allocated for child care expenses, all other provisions of the court order 
122.5 	remain in effect.
122.6 	(c) In cases where there is a substantial increase or decrease in child care expenses, 
122.7 	the parties may modify the order under section 518A.39.

122.8 	Sec. 7. Laws 2011, First Special Session chapter 9, article 9, section 18, is amended to 
122.9 	read:
122.10 	Sec. 18. WHITE EARTH BAND OF OJIBWE HUMAN SERVICES 
122.11 	PROJECT.
 122.12 	(a) The commissioner of human services, in consultation with the White Earth Band 
122.13 	of Ojibwe, shall transfer legal responsibility to the tribe for providing human services to 
122.14 	tribal members and their families who reside on or off the reservation in Mahnomen 
122.15 	County. The transfer shall include:
122.16 	(1) financing, including federal and state funds, grants, and foundation funds; and
122.17 	(2) services to eligible tribal members and families defined as it applies to state 
122.18 	programs being transferred to the tribe.
122.19 	(b) The determination as to which programs will be transferred to the tribe and 
122.20 	the timing of the transfer of the programs shall be made by a consensus decision of the 
122.21 	governing body of the tribe and the commissioner. The commissioner shall waive existing 
122.22 	rules and seek all federal approvals and waivers as needed to carry out the transfer.
122.23 	(c) When the commissioner approves transfer of programs and the tribe assumes 
122.24 	responsibility under this section, Mahnomen County is relieved of responsibility for 
122.25 	providing program services to tribal members and their families who live on or off the 
122.26 	reservation while the tribal project is in effect and funded, except that a family member 
122.27 	who is not a White Earth member may choose to receive services through the tribe or the 
122.28 	county. The commissioner shall have authority to redirect funds provided to Mahnomen 
122.29 	County for these services, including administrative expenses, to the White Earth Band 
122.30 	of Ojibwe Indians.
122.31 	(d) Upon the successful transfer of legal responsibility for providing human services 
122.32 	for tribal members and their families who reside on and off the reservation in Mahnomen 
122.33 	County, the commissioner and the White Earth Band of Ojibwe shall develop a plan to 
122.34 	transfer legal responsibility for providing human services for tribal members and their 
122.35 	families who reside on or off reservation in Clearwater and Becker Counties.
123.1 	(e) No later than January 15, 2012, the commissioner shall submit a written 
123.2 	report detailing the transfer progress to the chairs and ranking minority members of the 
123.3 	legislative committees with jurisdiction over health and human services. If legislation is 
123.4 	needed to fully complete the transfer of legal responsibility for providing human services, 
123.5 	the commissioner shall submit proposed legislation along with the written report.
123.6 	(f) Upon receipt of 100 percent match for health care costs from the Indian Health 
123.7 	Service, the first $500,000 of savings to the state in tribal health care costs shall be 
123.8 	distributed to the White Earth Band of Ojibwe to offset the band's cost of implementing 
123.9 	the human services project. The remainder of the state savings shall be distributed to the 
123.10 	White Earth Band of Ojibwe to supplement services to off-reservation tribal members.

123.11 	Sec. 8. FOSTER CARE FOR INDIVIDUALS WITH AUTISM.
 123.12 	The commissioner of human services shall identify and coordinate with one or more 
123.13 	counties that agree to issue a foster care license and authorize funding for people with 
123.14 	autism who are currently receiving home and community-based services under Minnesota 
123.15 	Statutes, section 256B.092 or 256B.49. Children eligible under this section must be in an 
123.16 	out-of-home placement approved by the lead agency that has legal responsibility for the 
123.17 	placement. Nothing in this section must be construed as restricting an individual's choice 
123.18 	of provider. The commissioner will assist the interested county or counties with obtaining 
123.19 	necessary capacity within the moratorium under Minnesota Statutes, section 245A.03, 
123.20 	subdivision 7. The commissioner shall coordinate with the interested counties and issue a 
123.21 	request for information to identify providers who have the training and skills to meet the 
123.22 	needs of the individuals identified in this section.

123.23 	Sec. 9. DIRECTION TO COMMISSIONER.
 123.24 	The commissioner shall develop an optional certification for providers of home 
123.25 	and community-based services waivers under Minnesota Statutes, section 256B.092 
123.26 	or 256B.49, that demonstrates competency in working with individuals with autism. 
123.27 	Recommended language and an implementation plan will be provided to the chairs and 
123.28 	ranking minority members of the legislative committees with jurisdiction over health and 
123.29 	human services policy and finance by February 15, 2013, as part of the Quality Outcome 
123.30 	Standards required under Laws 2010, chapter 352, article 1, section 24.

123.31 	Sec. 10. CHEMICAL HEALTH NAVIGATOR PROGRAM.
 123.32 	(a) The commissioner of human services, in partnership with the counties, tribes, 
123.33 	and stakeholders, shall develop a community-based integrated model of care to improve 
124.1 	the effectiveness and efficiency of the service continuum for chemically dependent 
124.2 	individuals. The plan shall identify methods to reduce duplication of efforts, promote 
124.3 	scientifically supported practices, and improve efficiency. This plan shall consider the 
124.4 	potential for geographically or demographically disparate impact on individuals who need 
124.5 	chemical dependency services.
124.6 	(b) The commissioner shall provide the chairs and ranking minority members of the 
124.7 	legislative committees with jurisdiction over health and human services a report detailing 
124.8 	necessary statutory and rule changes and a proposed pilot project to implement the plan no 
124.9 	later than March 15, 2013.

124.10 	Sec. 11. MINNESOTA SPECIALTY HEALTH SERVICES; WILLMAR.
 124.11 	The commissioner of human services shall manage and restructure department 
124.12 	resources to achieve savings in order to continue operations of the Minnesota Health 
124.13 	Services, Willmar site, until July 1, 2013.

124.14 	Sec. 12. BIENNIAL BUDGET REQUEST; UNIVERSITY OF MINNESOTA.
 124.15 	Beginning in 2013, as part of the biennial budget request submitted to the Office 
124.16 	of Management and Budget, the Board of Regents of the University of Minnesota must 
124.17 	include a request for funding for an investment in rural primary care training to be 
124.18 	delivered by family practice residence programs to prepare doctors for the practice of 
124.19 	primary care medicine in rural areas of the state. The funding request must provide for 
124.20 	ongoing support of rural primary care training through the University of Minnesota's 
124.21 	general operation and maintenance funding or through dedicated health science funding.

124.22 	ARTICLE 7
124.23 	HEALTH AND HUMAN SERVICES APPROPRIATIONS

124.24	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
124.25 	The amounts shown in this section summarize direct appropriations, by fund, made 
124.26 	in this article.

124.27			2012
		2013
		Total
	
124.28	General
	$
	305,000
	$
	(305,000)
	$
	-0-
	
124.29	Federal TANF
		-0-
		4,028,000
		4,028,000
	
124.30
124.31	State Government Special 
Revenue
		-0-
		563,000
		563,000
	
124.32	Total
	$
	305,000
	$
	4,286,000
	$
	4,591,000

124.33	Sec. 2. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
125.1 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
125.2 	in parentheses, subtracted from the appropriations in Laws 2011, First Special Session 
125.3 	chapter 9, article 10, to the agencies and for the purposes specified in this article. The 
125.4 	appropriations are from the general fund or other named fund and are available for the 
125.5 	fiscal years indicated for each purpose. The figures "2012" and "2013" used in this 
125.6 	article mean that the addition to or subtraction from the appropriation listed under them 
125.7 	is available for the fiscal year ending June 30, 2012, or June 30, 2013, respectively. 
125.8 	Supplemental appropriations and reductions to appropriations for the fiscal year ending 
125.9 	June 30, 2012, are effective the day following final enactment unless a different effective 
125.10 	date is explicit.

125.11				APPROPRIATIONS
	
125.12				Available for the Year
	
125.13				Ending June 30
	
125.14					2012
		2013

125.15
125.16	Sec. 3. COMMISSIONER OF HUMAN 
SERVICES

125.17	Subdivision 1.Total Appropriation
 	$
	305,000
	$
	3,448,000

125.18	Appropriations by Fund
	
125.19		2012
	2013
	
125.20	General
	305,000
	(580,000)
	
125.21	Federal TANF
	-0-
	4,028,000

125.22	Subd. 2.Central Office Operations

125.23	Appropriations by Fund
	
125.24	General
	4,000
	171,000
	
125.25	Federal TANF
	-0-
	81,000
	
125.26 	Return On Taxpayer Investment 
125.27 	Implementation Study. $100,000 is 
125.28 	appropriated in fiscal year 2013 from the 
125.29 	general fund to the commissioner of human 
125.30 	services for a grant to the commissioner 
125.31 	of management and budget to develop 
125.32 	recommendations for implementing a 
125.33 	return on taxpayer investment (ROTI) 
125.34 	methodology and practice related to 
125.35 	human services and corrections programs 
125.36 	administered and funded by state and county 
126.1 	government. The scope of the study shall 
126.2 	include assessments of ROTI initiatives 
126.3 	in other states, design implications for 
126.4 	Minnesota, and identification of one or 
126.5 	more Minnesota institutions of higher 
126.6 	education capable of providing rigorous 
126.7 	and consistent nonpartisan institutional 
126.8 	support for ROTI. The commissioner 
126.9 	shall consult with representatives of other 
126.10 	state agencies, counties, legislative staff, 
126.11 	Minnesota institutions of higher education, 
126.12 	and other stakeholders in developing 
126.13 	recommendations. The commissioner shall 
126.14 	report findings and recommendations to the 
126.15 	governor and legislature by November 30, 
126.16 	2012. This appropriation is added to the base.

126.17	Subd. 3.Forecasted Programs

126.18	Appropriations by Fund
	
126.19	General
	301,000
	(1,811,000)
	
126.20	Federal TANF
	-0-
	607,000

126.21	(a) Group Residential Housing Grants
					
126.22 	Managing Residential Settings. If 
126.23 	the commissioner's efforts to implement 
126.24 	Minnesota Statutes, section 256B.492, results 
126.25 	in general fund savings as compared to base 
126.26 	level costs in the February 2012 Department 
126.27 	of Management and Budget forecast of 
126.28 	revenues and expenditures, the savings 
126.29 	shall be applied to reduce the reductions 
126.30 	to congregate care rates for low-needs 
126.31 	individuals specified in Laws 2011, First 
126.32 	Special Session chapter 9, effective July 1, 
126.33 	2013.

126.34	(b) Medical Assistance Grants
					
127.1 	PCA Relative Care Payment Recovery.
127.2 	Notwithstanding any law to the contrary, and 
127.3 	if, at the conclusion of the HealthStar Home 
127.4 	Health, Inc et al v. Commissioner of Human 
127.5 	Services litigation, the PCA relative rate 
127.6 	reduction under Minnesota Statutes, section 
127.7 	256B.0659, subdivision 11, paragraph (c), 
127.8 	is upheld, the commissioner is prohibited 
127.9 	from recovering the difference between the 
127.10 	100 percent rate paid to providers and the 
127.11 	80 percent rate, during the period of the 
127.12 	temporary injunction issued on October 26, 
127.13 	2011. This section does not prohibit the 
127.14 	commissioner from recovering any other 
127.15 	overpayments from providers.
127.16 	Managing Corporate Foster Care. The 
127.17 	commissioner of human services shall 
127.18 	manage foster care beds under Minnesota 
127.19 	Statutes, section 245A.03, subdivision 7, 
127.20 	in order to reduce costs by $4,149,000 in 
127.21 	fiscal year 2013 as compared to base level 
127.22 	costs in the February 2012 Department of 
127.23 	Management and Budget forecast of revenues 
127.24 	and expenditures. If the department's efforts 
127.25 	to implement this provision results in savings 
127.26 	greater than $4,149,000 in fiscal year 2014, 
127.27 	the additional savings shall be applied to 
127.28 	reduce the reductions to congregate care 
127.29 	rates for low-needs individuals specified in 
127.30 	Laws 2011, First Special Session chapter 9, 
127.31 	effective July 1, 2013.
127.32 	Continuing Care Provider Payment Delay.
127.33 	If the commissioner of human services does 
127.34 	not receive the federal waiver requested 
127.35 	under Laws 2011, First Special Session 
127.36 	chapter 9, article 7, section 52, by July 1, 
128.1 	2012, the commissioner shall delay the last 
128.2 	payment or payments in fiscal year 2013 to 
128.3 	providers listed in Minnesota Statutes 2011 
128.4 	Supplement, section 256B.5012, subdivision 
128.5 	13, and Laws 2011, First Special Session 
128.6 	chapter 9, article 7, section 54, as they 
128.7 	existed before the repeal in this act, by up 
128.8 	to $22,854,000 in state match, reduced by 
128.9 	any cash basis state share savings from 
128.10 	implementing the level of care waiver before 
128.11 	July 1, 2013, and make these payments in 
128.12 	July 2013. If the commissioner of human 
128.13 	services receives the federal waiver requested 
128.14 	under Laws 2011, First Special Session 
128.15 	chapter 9, article 7, section 52, between July 
128.16 	1, 2012, and June 30, 2013, payments to the 
128.17 	providers listed under Minnesota Statutes 
128.18 	2011 Supplement, section 256B.5012, 
128.19 	subdivision 13, and Laws 2011, First Special 
128.20 	Session chapter 9, article 7, section 54, as 
128.21 	they existed before being repealed in this 
128.22 	act, in June 2013 shall be reduced by up to 
128.23 	$22,854,000 in state match, as necessary to 
128.24 	match the amount of the reduction that would 
128.25 	have happened up to the date the waiver is 
128.26 	received and the resulting amount must be 
128.27 	paid to the providers in July 2013.
128.28 	Contingent Managed Care Provider 
128.29 	Payment Increases. Any money received 
128.30 	by the state as a result of the cap on 
128.31 	earnings in the 2011 contract or 2011 
128.32 	contract amendments for services provided 
128.33 	under Minnesota Statutes, sections 
128.34 	256B.69 and 256L.12, shall be used to 
128.35 	retroactively increase medical assistance 
128.36 	and MinnesotaCare capitation payments to 
129.1 	managed care plans for calendar year 2011. 
129.2 	The commissioner of human services shall 
129.3 	require managed care plans to use the entire 
129.4 	amount of any increase in capitation rates 
129.5 	provided under this provision to retroactively 
129.6 	increase calendar year 2011 payment rates for 
129.7 	health care providers employed by or under 
129.8 	contract with the plan, including nursing 
129.9 	facilities that provide services to emergency 
129.10 	medical assistance recipients, but excluding 
129.11 	payments to hospitals and other institutional 
129.12 	providers for facility, administrative, and 
129.13 	other operating costs not related to direct 
129.14 	patient care. Increased payments must be 
129.15 	distributed in proportion to each provider's 
129.16 	share of total plan payments received for 
129.17 	services provided to medical assistance and 
129.18 	MinnesotaCare enrollees. Any increase in 
129.19 	provider payment rates under this provision 
129.20 	is onetime and shall not increase base 
129.21 	provider payment rates.

129.22	Subd. 4.Grant Programs

129.23	Appropriations by Fund
	
129.24	General
	-0-
	160,000
	
129.25	Federal TANF
	-0-
	3,340,000

129.26	(a) Support Services Grants
					
129.27 	Long-Term Homeless Supportive Services.
129.28 	$500,000 is appropriated in fiscal year 2013 
129.29 	from the TANF fund for long-term homeless 
129.30 	supportive services for low-income families 
129.31 	under Minnesota Statutes, section 256K.26. 
129.32 	This is a onetime appropriation and is not 
129.33 	added to the base.
129.34 	Healthy Community Initiatives. $300,000 
129.35 	in fiscal year 2013 is appropriated from the 
130.1 	TANF fund to the commissioner of human 
130.2 	services for contracting with the Search 
130.3 	Institute to promote healthy community 
130.4 	initiatives. The commissioner may expend 
130.5 	up to five percent of the appropriation 
130.6 	to provide for the program evaluation. 
130.7 	This appropriation must be used to serve 
130.8 	families with incomes below 200 percent 
130.9 	of the federal poverty guidelines and minor 
130.10 	children in the household. This is a onetime 
130.11 	appropriation and is available until expended.
130.12 	Circles of Support. $400,000 in fiscal year 
130.13 	2013 is appropriated from the TANF fund 
130.14 	to the commissioner of human services for 
130.15 	the purpose of providing grants to three 
130.16 	community action agencies for circles of 
130.17 	support initiatives. This appropriation must 
130.18 	be used to serve families with incomes below 
130.19 	200 percent of the federal poverty guidelines 
130.20 	and minor children in the household. This 
130.21 	is a onetime appropriation and is available 
130.22 	until expended.
130.23 	Northern Connections. $300,000 is 
130.24 	appropriated from the TANF fund in fiscal 
130.25 	year 2013 to the commissioner of human 
130.26 	services for a grant to Northern Connections 
130.27 	in Perham for a workforce program that 
130.28 	provides one-stop supportive services 
130.29 	to individuals as they transition into the 
130.30 	workforce. This appropriation must be used 
130.31 	for families with incomes below 200 percent 
130.32 	of the federal poverty guidelines and with 
130.33 	minor children in the household. This is a 
130.34 	onetime appropriation and is available until 
130.35 	expended.
131.1 	Transitional Housing Services. $1,000,000 
131.2 	is appropriated in fiscal year 2013 to the 
131.3 	commissioner of human services from the 
131.4 	TANF fund for transitional housing services, 
131.5 	including the provision of up to four months 
131.6 	of rental assistance under Minnesota Statutes, 
131.7 	section 256E.33. This appropriation must be 
131.8 	used for homeless families with children with 
131.9 	incomes below 115 percent of the federal 
131.10 	poverty guidelines, and must be coordinated 
131.11 	with family stabilization services under 
131.12 	Minnesota Statutes, section 256J.575.

131.13	(b) Children and Economic Support Grants
					
131.14 	Community Action Agencies. $250,000 
131.15 	is appropriated in fiscal year 2013 from the 
131.16 	TANF fund for grants to community action 
131.17 	agencies under Minnesota Statutes, section 
131.18 	256E.30. This appropriation must be used 
131.19 	to serve families with income below 200 
131.20 	percent of the federal poverty guidelines and 
131.21 	minor children in the household. This is a 
131.22 	onetime appropriation and is available until 
131.23 	expended.
131.24 	MFIP Mentoring Pilot Program. $150,000 
131.25 	is appropriated to the commissioner of 
131.26 	human services from the TANF fund in 
131.27 	fiscal year 2013 for the purpose of providing 
131.28 	grants to help five local communities to 
131.29 	train and support volunteers mentoring 
131.30 	families receiving MFIP. Each pilot program 
131.31 	may receive a grant of up to $30,000. 
131.32 	Organizations must apply for grant funds 
131.33 	according to the timelines and on the 
131.34 	forms prescribed by the commissioner. 
131.35 	Organizations receiving grant funding must 
132.1 	model their project on the circles of support 
132.2 	model. Projects must focus on reducing 
132.3 	parents' and their children's isolation and 
132.4 	supporting families in making connections 
132.5 	within their local communities.

132.6	(c) Basic Sliding Fee Child Care Grants
					
132.7 	Basic Sliding Fee. $292,000 is appropriated 
132.8 	from the TANF fund in fiscal year 2013 to the 
132.9 	commissioner for the purposes of the absent 
132.10 	day policy under Minnesota Statutes, section 
132.11 	119B.13, subdivision 7. $148,000 in fiscal 
132.12 	year 2013 from the TANF fund for a one 
132.13 	percent increase in accreditation differential. 
132.14 	This appropriation is added to the base.

132.15	(d) Disabilities Grants
					
132.16 	Living Skills Training for Persons 
132.17 	with Intractable Epilepsy. $65,000 is 
132.18 	appropriated in fiscal year 2013 from the 
132.19 	general fund to the commissioner of human 
132.20 	services for living skills training programs for 
132.21 	persons with intractable epilepsy who need 
132.22 	assistance in the transition to independent 
132.23 	living under Laws 1988, chapter 689. This 
132.24 	is a onetime appropriation and is available 
132.25 	until expended.
132.26 	Self-advocacy Network for Persons with 
132.27 	Disabilities.
132.28 	(1) $95,000 is appropriated from the general 
132.29 	fund in fiscal year 2013 to the commissioner 
132.30 	of human services to establish and maintain 
132.31 	a statewide self-advocacy network for 
132.32 	persons with intellectual and developmental 
132.33 	disabilities. This is a onetime appropriation 
132.34 	and is available until expended.
133.1 	(2) The self-advocacy network must focus on 
133.2 	ensuring that persons with disabilities are:
133.3 	(i) informed of and educated about their legal 
133.4 	rights in the areas of education, employment, 
133.5 	housing, transportation, and voting; and
133.6 	(ii) educated and trained to self-advocate for 
133.7 	their rights under law.
133.8 	(3) Self-advocacy network activities under 
133.9 	this section include but are not limited to:
133.10 	(i) education and training, including 
133.11 	preemployment and workplace skills;
133.12 	(ii) establishment and maintenance of a 
133.13 	communication and information exchange 
133.14 	system for self-advocacy groups; and
133.15 	(iii) financial and technical assistance to 
133.16 	self-advocacy groups.

133.17	Sec. 4. COMMISSIONER OF HEALTH

133.18	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	1,086,000

133.19	Appropriations by Fund
	
133.20		2012
	2013
	
133.21	General
	-0-
	523,000
	
133.22
133.23	State Government 
Special Revenue
	-0-
	563,000

133.24
133.25	Subd. 2.Community and Family Health 
Promotions
 					
133.26 	Autism Study. $200,000 is for the 
133.27 	commissioner of health, in partnership with 
133.28 	the University of Minnesota, to conduct a 
133.29 	qualitative study focused on cultural and 
133.30 	resource-based aspects of autism spectrum 
133.31 	disorders (ASD) that are unique to the 
133.32 	Somali community. By February 15, 
133.33 	2013, the commissioner shall report the 
133.34 	findings of this study to the legislature. The 
134.1 	report must include recommendations as to 
134.2 	establishment of a population-based public 
134.3 	health surveillance system for ASD.

134.4	Subd. 3.Policy Quality and Compliance

134.5	Appropriations by Fund
	
134.6	General
	-0-
	223,000
	
134.7
134.8	State Government 
Special Revenue
	-0-
	563,000
	
134.9 	Licensed Home Care Providers. $563,000 
134.10 	from the state government special revenue 
134.11 	fund in fiscal year 2013 is to increase 
134.12 	inspection and oversight of licensed home 
134.13 	care providers under Minnesota Statutes, 
134.14 	chapter 144A. This appropriation is added 
134.15 	to the base.
134.16 	Web Site Changes. $36,000 from the 
134.17 	general fund is for Web site changes required 
134.18 	in article 2, section 17. This is a onetime 
134.19 	appropriation and must be shared with the 
134.20 	Department of Human Services through an 
134.21 	interagency agreement.
134.22 	Management and Budget. $100,000 from 
134.23 	the general fund is for the commissioner to 
134.24 	transfer to the commissioner of management 
134.25 	and budget for the evaluation and report 
134.26 	required in article 2, section 17. This is a 
134.27 	onetime appropriation.
134.28 	For-Profit HMO Study. $79,000 is for 
134.29 	a study of for-profit health maintenance 
134.30 	organizations. This is onetime and available 
134.31 	until expended.
134.32 	Nursing Facility Moratorium Exceptions.
134.33 	(a) Beginning in fiscal year 2013, the 
134.34 	commissioner of health may approve 
134.35 	moratorium exception projects under 
135.1 	Minnesota Statutes, section 144A.073, for 
135.2 	which the full annualized  state share of 
135.3 	medical assistance costs does  not exceed 
135.4 	$1,500,000.
135.5 	(b) In fiscal year 2013, $8,000 is for 
135.6 	administrative costs related to review of 
135.7 	moratorium exception projects.

135.8	Subd. 4.Health Protection
 					
135.9 	Aliveness Project. $100,000 in fiscal year 
135.10 	2013 is for a grant to the Aliveness Project, 
135.11 	a statewide nonprofit, for providing the 
135.12 	health and wellness services it has provided 
135.13 	to individuals throughout Minnesota since 
135.14 	its inception in 1985. The activities and 
135.15 	proposed outcomes supported by this 
135.16 	onetime appropriation must further the 
135.17 	comprehensive plan of the Department 
135.18 	of Health, HIV/AIDS program. This is a 
135.19 	onetime appropriation and is available until 
135.20 	expended.

135.21 	Sec. 5. EXPIRATION OF UNCODIFIED LANGUAGE.
 135.22 	All uncodified language contained in this article expires on June 30, 2013, unless a 
135.23 	different expiration date is explicit.

135.24 	Sec. 6. EFFECTIVE DATE.
 135.25 	The provisions in this article are effective July 1, 2012, unless a different effective 
135.26 	date is explicit.