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, 
1.6 	and vulnerable children and adults; providing for data sharing; requiring 
1.7 	eligibility determinations; requiring the University of Minnesota to request 
1.8 	funding for rural primary care training; providing for the release of medical 
1.9 	assistance liens; providing appointments; providing grants; requiring studies 
1.10 	and reports; appropriating money;amending Minnesota Statutes 2010, sections 
1.11 	62D.02, subdivision 3; 62D.05, subdivision 6; 62D.12, subdivision 1; 62J.496, 
1.12 	subdivision 2; 62Q.80; 62U.04, subdivisions 1, 2, 4, 5; 119B.13, subdivision 3a; 
1.13 	144.1222, by adding a subdivision; 144.292, subdivision 6; 144.293, subdivision 
1.14 	2; 144A.351; 144D.04, subdivision 2; 145.906; 245.697, subdivision 1; 245A.03, 
1.15 	by adding a subdivision; 245A.11, subdivision 7; 245B.07, subdivision 1; 
1.16 	245C.04, subdivision 6; 245C.05, subdivision 7; 252.27, subdivision 2a; 
1.17 	254A.19, by adding a subdivision; 256.01, by adding subdivisions; 256B.056, 
1.18 	subdivision 1a; 256B.0625, subdivisions 9, 28a, by adding subdivisions; 
1.19 	256B.0659, by adding a subdivision; 256B.0751, by adding a subdivision; 
1.20 	256B.0754, subdivision 2; 256B.0915, subdivision 3g; 256B.092, subdivisions 
1.21 	1b, 7, by adding subdivisions; 256B.0943, subdivision 9; 256B.431, subdivision 
1.22 	17e, by adding a subdivision; 256B.441, by adding a subdivision; 256B.49, by 
1.23 	adding a subdivision; 256B.69, subdivision 9, by adding subdivisions; 256D.06, 
1.24 	subdivision 1b; 256D.44, subdivision 5; 256E.37, subdivision 1; 256I.05, 
1.25 	subdivision 1e; 256J.08, by adding a subdivision; 256J.26, subdivision 1, by 
1.26 	adding a subdivision; 256J.45, subdivision 2; 256J.50, by adding a subdivision; 
1.27 	256J.521, subdivision 2; 462A.29; 518A.40, subdivision 4; Minnesota Statutes 
1.28 	2011 Supplement, sections 62U.04, subdivisions 3, 9; 119B.13, subdivision 
1.29 	7; 245A.03, subdivision 7; 256.045, subdivision 3; 256.987, subdivisions 1, 
1.30 	2, by adding subdivisions; 256B.056, subdivision 3; 256B.057, subdivision 
1.31 	9; 256B.0625, subdivision 38; 256B.0911, subdivisions 3a, 3c; 256B.0915, 
1.32 	subdivisions 3e, 3h; 256B.097, subdivision 3; 256B.49, subdivisions 14, 15, 23; 
1.33 	256B.5012, subdivision 13; 256B.69, subdivisions 5a, 5c; 256E.35, subdivisions 
1.34 	5, 6; 256I.05, subdivision 1a; 256J.49, subdivision 13; 256L.12, subdivision 9; 
1.35 	256M.40, subdivision 1; Laws 2010, chapter 374, section 1; Laws 2011, First 
1.36 	Special Session chapter 9, article 7, sections 52; 54; article 9, section 18; article 
1.37 	10, section 3, subdivisions 1, 3, 4; proposing coding for new law in Minnesota 
1.38 	Statutes, chapters 144; 256B.
2.1 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.2 	ARTICLE 1
2.3 	HEALTH CARE

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

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

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 target 
7.31 	must be quantifiable, objective, measurable, and reasonably attainable, except in the case 
7.32 	of a performance target based on a federal or state law or rule. Criteria for assessment 
7.33 	of each performance target must be outlined in writing prior to the contract effective 
7.34 	date. Clinical or utilization performance targets and their related criteria must consider 
7.35 	evidence-based research and reasonable interventions when available or applicable to 
8.1 	the population served, and must be developed with input from external 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 plan's 
9.3 	emergency department utilization rate for medical assistance and MinnesotaCare enrollees, 
9.4 	as determined by the commissioner. For 2012, the reduction shall be based on the health 
9.5 	plan's utilization in 2009. To earn the return of the withhold each subsequent year, the 
9.6 	managed care plan or county-based purchasing plan must achieve a qualifying reduction 
9.7 	of no less than ten percent of the plan's emergency department utilization rate for medical 
9.8 	assistance and MinnesotaCare enrollees, excluding Medicare enrollees in programs 
9.9 	described in subdivisions 23 and 28, compared to the previous calendar measurement
9.10 	year, until the final performance target is reached. When measuring performance, the 
9.11 	commissioner must consider the difference in health risk in a plan's membership in the 
9.12 	baseline year compared to the measurement year and work with the managed care or 
9.13 	county-based purchasing plan to account for differences that they agree are significant.
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 2011 2009. 
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 in programs 
9.34 	described in subdivisions 23 and 28, compared to the previous calendar year until the final 
9.35 	performance target is reached. When measuring performance, the commissioner must 
9.36 	consider the difference in health risk in a plan's membership in the baseline year compared 
10.1 	to the measurement year, and work with the managed care or county-based purchasing 
10.2 	plan to account for differences that they agree are significant.
10.3 	The withheld funds must be returned no sooner than July 1 and no later than July 
10.4 	31 of the following calendar year if the managed care plan or county-based purchasing 
10.5 	plan demonstrates to the satisfaction of the commissioner that this reduction in the 
10.6 	hospitalization rate was achieved. The commissioner shall structure the withhold so that 
10.7 	the commissioner returns a portion of the withheld funds in amounts commensurate with 
10.8 	achieved reductions in utilization less than the targeted amount.
10.9 	The withhold described in this paragraph shall continue until there is a 25 percent 
10.10 	reduction in the hospital admission rate compared to the hospital admission rates in 
10.11 	calendar year 2011, as determined by the commissioner. The hospital admissions in this 
10.12 	performance target do not include the admissions applicable to the subsequent hospital 
10.13 	admission performance target under paragraph (i). Hospitals shall cooperate with the 
10.14 	plans in meeting this performance target and shall accept payment withholds that may be 
10.15 	returned to the hospitals if the performance target is achieved.
10.16 	(i) Effective for services rendered on or after January 1, 2012, the commissioner 
10.17 	shall include as part of the performance targets described in paragraph (c) a reduction in 
10.18 	the plan's hospitalization admission rates for subsequent hospitalizations within 30 days 
10.19 	of a previous hospitalization of a patient regardless of the reason, for medical assistance 
10.20 	and MinnesotaCare enrollees, as determined by the commissioner. To earn the return of 
10.21 	the withhold each year, the managed care plan or county-based purchasing plan must 
10.22 	achieve a qualifying reduction of the subsequent hospitalization rate for medical assistance 
10.23 	and MinnesotaCare enrollees, excluding Medicare enrollees in programs described in 
10.24 	subdivisions 23 and 28, of no less than five percent compared to the previous calendar 
10.25 	year until the final performance target is reached.
10.26 	The withheld funds must be returned no sooner than July 1 and no later than July 
10.27 	31 of the following calendar year if the managed care plan or county-based purchasing 
10.28 	plan demonstrates to the satisfaction of the commissioner that a qualifying reduction in 
10.29 	the subsequent hospitalization rate was achieved. The commissioner shall structure the 
10.30 	withhold so that the commissioner returns a portion of the withheld funds in amounts 
10.31 	commensurate with achieved reductions in utilization less than the targeted amount.
10.32 	The withhold described in this paragraph must continue for each consecutive 
10.33 	contract period until the plan's subsequent hospitalization rate for medical assistance 
10.34 	and MinnesotaCare enrollees, excluding Medicare enrollees in programs described in 
10.35 	subdivisions 23 and 28, is reduced by 25 percent of the plan's subsequent hospitalization 
10.36 	rate for calendar year 2011. Hospitals shall cooperate with the plans in meeting this 
11.1 	performance target and shall accept payment withholds that must be returned to the 
11.2 	hospitals if the performance target is achieved.
11.3 	(j) Effective for services rendered on or after January 1, 2011, through December 31, 
11.4 	2011, the commissioner shall withhold 4.5 percent of managed care plan payments under 
11.5 	this section and county-based purchasing plan payments under section 256B.692 for the 
11.6 	prepaid medical assistance program. The withheld funds must be returned no sooner than 
11.7 	July 1 and no later than July 31 of the following year. The commissioner may exclude 
11.8 	special demonstration projects under subdivision 23.
11.9 	(k) Effective for services rendered on or after January 1, 2012, through December 
11.10 	31, 2012, the commissioner shall withhold 4.5 percent of managed care plan payments 
11.11 	under this section and county-based purchasing plan payments under section 256B.692 
11.12 	for the prepaid medical assistance program. The withheld funds must be returned no 
11.13 	sooner than July 1 and no later than July 31 of the following year. The commissioner may 
11.14 	exclude special demonstration projects under subdivision 23.
11.15 	(l) Effective for services rendered on or after January 1, 2013, through December 31, 
11.16 	2013, the commissioner shall withhold 4.5 percent of managed care plan payments under 
11.17 	this section and county-based purchasing plan payments under section 256B.692 for the 
11.18 	prepaid medical assistance program. The withheld funds must be returned no sooner than 
11.19 	July 1 and no later than July 31 of the following year. The commissioner may exclude 
11.20 	special demonstration projects under subdivision 23.
11.21 	(m) Effective for services rendered on or after January 1, 2014, the commissioner 
11.22 	shall withhold three percent of managed care plan payments under this section and 
11.23 	county-based purchasing plan payments under section 256B.692 for the prepaid medical 
11.24 	assistance program. The withheld funds must be returned no sooner than July 1 and 
11.25 	no later than July 31 of the following year. The commissioner may exclude special 
11.26 	demonstration projects under subdivision 23.
11.27 	(n) A managed care plan or a county-based purchasing plan under section 256B.692 
11.28 	may include as admitted assets under section 62D.044 any amount withheld under this 
11.29 	section that is reasonably expected to be returned.
11.30 	(o) Contracts between the commissioner and a prepaid health plan are exempt from 
11.31 	the set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph 
11.32 	(a), and 7.
11.33 	(p) The return of the withhold under paragraphs (d), (f), and (j) to (m) is not subject 
11.34 	to the requirements of paragraph (c).

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

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

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

14.3 	Sec. 13. Minnesota Statutes 2010, section 256B.69, is amended by adding a 
14.4 	subdivision to read:
14.5 		Subd. 33.Competitive bidding. (a) For managed care contracts effective on or 
14.6 	after January 1, 2014, the commissioner may utilize a competitive price bidding program 
14.7 	for nonelderly, nondisabled adults and children in medical assistance and MinnesotaCare 
14.8 	in the seven-county metropolitan area. The program must allow a minimum of two 
14.9 	managed care plans to serve the metropolitan area.
14.10 	(b) In designing the competitive bid program, the commissioner shall consider, and 
14.11 	incorporate where appropriate, the procedures and criteria used in the competitive bidding 
14.12 	pilot authorized under Laws 2011, First Special Session chapter 9, article 6, section 96. 
14.13 	The pilot program operating in Hennepin County under the authority of section 256B.0756 
14.14 	shall continue to be exempt from competitive bid.
14.15 	(c) The commissioner shall use past performance data as a factor in selecting vendors 
14.16 	and shall consider this information, along with competitive bid and other information, in 
14.17 	determining whether to contract with a managed care plan under this subdivision. Where 
14.18 	possible, the assessment of past performance in serving persons on public programs shall 
14.19 	be based on encounter data submitted to the commissioner. The commissioner shall 
14.20 	evaluate past performance based on both the health outcomes of care and success rates 
14.21 	in securing participation in recommended preventive and early diagnostic care. Data 
14.22 	provided by managed care plans must be provided in a uniform manner as specified by 
14.23 	the commissioner and must include only data on medical assistance and MinnesotaCare 
14.24 	enrollees. The data submitted must include health outcome measures on reducing the 
14.25 	incidence of low birth weight established by the managed care plan under subdivision 32.

14.26 	Sec. 14. Minnesota Statutes 2011 Supplement, section 256L.12, subdivision 9, is 
14.27 	amended to read:
14.28 		Subd. 9.Rate setting; performance withholds. (a) Rates will be prospective, 
14.29 	per capita, where possible. The commissioner may allow health plans to arrange for 
14.30 	inpatient hospital services on a risk or nonrisk basis. The commissioner shall consult with 
14.31 	an independent actuary to determine appropriate rates.
14.32 	(b) For services rendered on or after January 1, 2004, the commissioner shall 
14.33 	withhold five percent of managed care plan payments and county-based purchasing 
14.34 	plan payments under this section pending completion of performance targets. Each 
15.1 	performance target must be quantifiable, objective, measurable, and reasonably attainable, 
15.2 	except in the case of a performance target based on a federal or state law or rule. Criteria 
15.3 	for assessment of each performance target must be outlined in writing prior to the contract 
15.4 	effective date. Clinical or utilization performance targets and their related criteria must 
15.5 	consider evidence-based research and reasonable interventions, when available or 
15.6 	applicable to the populations served, and must be developed with input from external 
15.7 	clinical experts and stakeholders, including managed care plans and providers. The 
15.8 	managed care plan must demonstrate, to the commissioner's satisfaction, that the data 
15.9 	submitted regarding attainment of the performance target is accurate. The commissioner 
15.10 	shall periodically change the administrative measures used as performance targets in 
15.11 	order to improve plan performance across a broader range of administrative services. 
15.12 	The performance targets must include measurement of plan efforts to contain spending 
15.13 	on health care services and administrative activities. The commissioner may adopt 
15.14 	plan-specific performance targets that take into account factors affecting only one plan, 
15.15 	such as characteristics of the plan's enrollee population. The withheld funds must be 
15.16 	returned no sooner than July 1 and no later than July 31 of the following calendar year if 
15.17 	performance targets in the contract are achieved.
15.18 	(c) For services rendered on or after January 1, 2011, the commissioner shall 
15.19 	withhold an additional three percent of managed care plan or county-based purchasing 
15.20 	plan payments under this section. The withheld funds must be returned no sooner than 
15.21 	July 1 and no later than July 31 of the following calendar year. The return of the withhold 
15.22 	under this paragraph is not subject to the requirements of paragraph (b).
15.23 	(d) Effective for services rendered on or after January 1, 2011, through December 
15.24 	31, 2011, the commissioner shall include as part of the performance targets described in 
15.25 	paragraph (b) a reduction in the plan's emergency room utilization rate for state health 
15.26 	care program enrollees by a measurable rate of five percent from the plan's utilization 
15.27 	rate for the previous calendar year. Effective for services rendered on or after January 
15.28 	1, 2012, the commissioner shall include as part of the performance targets described in 
15.29 	paragraph (b) a reduction in the health plan's emergency department utilization rate for 
15.30 	medical assistance and MinnesotaCare enrollees, as determined by the commissioner.
15.31 	For 2012, the reduction shall be based on the health plan's utilization in 2009. To earn 
15.32 	the return of the withhold each subsequent year, the managed care plan or county-based 
15.33 	purchasing plan must achieve a qualifying reduction of no less than ten percent of the 
15.34 	plan's utilization rate for medical assistance and MinnesotaCare enrollees, excluding 
15.35 	Medicare enrollees in programs described in section 256B.69, subdivisions 23 and 28, 
15.36 	compared to the previous calendar measurement year, until the final performance target is 
16.1 	reached. When measuring performance, the commissioner must consider the difference 
16.2 	in health risk in a plan's membership in the baseline year compared to the measurement 
16.3 	year, and work with the managed care or county-based purchasing plan to account for 
16.4 	differences that they agree are significant.
16.5 	The withheld funds must be returned no sooner than July 1 and no later than July 31 
16.6 	of the following calendar year if the managed care plan or county-based purchasing plan 
16.7 	demonstrates to the satisfaction of the commissioner that a reduction in the utilization rate 
16.8 	was achieved. The commissioner shall structure the withhold so that the commissioner 
16.9 	returns a portion of the withheld funds in amounts commensurate with achieved reductions 
16.10 	in utilization less than the targeted amount.
16.11 	The withhold described in this paragraph shall continue for each consecutive 
16.12 	contract period until the plan's emergency room utilization rate for state health care 
16.13 	program enrollees is reduced by 25 percent of the plan's emergency room utilization 
16.14 	rate for medical assistance and MinnesotaCare enrollees for calendar year 2011 2009. 
16.15 	Hospitals shall cooperate with the health plans in meeting this performance target and 
16.16 	shall accept payment withholds that may be returned to the hospitals if the performance 
16.17 	target is achieved.
16.18 	(e) Effective for services rendered on or after January 1, 2012, the commissioner 
16.19 	shall include as part of the performance targets described in paragraph (b) a reduction 
16.20 	in the plan's hospitalization admission rate for medical assistance and MinnesotaCare 
16.21 	enrollees, as determined by the commissioner. To earn the return of the withhold each 
16.22 	year, the managed care plan or county-based purchasing plan must achieve a qualifying 
16.23 	reduction of no less than five percent of the plan's hospital admission rate for medical 
16.24 	assistance and MinnesotaCare enrollees, excluding Medicare enrollees in programs 
16.25 	described in section 256B.69, subdivisions 23 and 28, compared to the previous calendar 
16.26 	year, until the final performance target is reached. When measuring performance, the 
16.27 	commissioner must consider the difference in health risk in a plan's membership in the 
16.28 	baseline year compared to the measurement year, and work with the managed care or 
16.29 	county-based purchasing plan to account for differences that they agree are significant.
16.30 	The withheld funds must be returned no sooner than July 1 and no later than July 
16.31 	31 of the following calendar year if the managed care plan or county-based purchasing 
16.32 	plan demonstrates to the satisfaction of the commissioner that this reduction in the 
16.33 	hospitalization rate was achieved. The commissioner shall structure the withhold so that 
16.34 	the commissioner returns a portion of the withheld funds in amounts commensurate with 
16.35 	achieved reductions in utilization less than the targeted amount.
17.1 	The withhold described in this paragraph shall continue until there is a 25 percent 
17.2 	reduction in the hospitals admission rate compared to the hospital admission rate for 
17.3 	calendar year 2011 as determined by the commissioner. Hospitals shall cooperate with the 
17.4 	plans in meeting this performance target and shall accept payment withholds that may be 
17.5 	returned to the hospitals if the performance target is achieved. The hospital admissions 
17.6 	in this performance target do not include the admissions applicable to the subsequent 
17.7 	hospital admission performance target under paragraph (f).
17.8 	(f) Effective for services provided on or after January 1, 2012, the commissioner 
17.9 	shall include as part of the performance targets described in paragraph (b) a reduction 
17.10 	in the plan's hospitalization rate for a subsequent hospitalization within 30 days of a 
17.11 	previous hospitalization of a patient regardless of the reason, for medical assistance and 
17.12 	MinnesotaCare enrollees, as determined by the commissioner. To earn the return of the 
17.13 	withhold each year, the managed care plan or county-based purchasing plan must achieve 
17.14 	a qualifying reduction of the subsequent hospital admissions rate for medical assistance 
17.15 	and MinnesotaCare enrollees, excluding Medicare enrollees in programs described in 
17.16 	section 256B.69, subdivisions 23 and 28, of no less than five percent compared to the 
17.17 	previous calendar year until the final performance target is reached.
17.18 	The withheld funds must be returned no sooner than July 1 and no later than July 31 
17.19 	of the following calendar year if the managed care plan or county-based purchasing plan 
17.20 	demonstrates to the satisfaction of the commissioner that a reduction in the subsequent 
17.21 	hospitalization rate was achieved. The commissioner shall structure the withhold so that 
17.22 	the commissioner returns a portion of the withheld funds in amounts commensurate with 
17.23 	achieved reductions in utilization less than the targeted amount.
17.24 	The withhold described in this paragraph must continue for each consecutive 
17.25 	contract period until the plan's subsequent hospitalization rate for medical assistance and 
17.26 	MinnesotaCare enrollees is reduced by 25 percent of the plan's subsequent hospitalization 
17.27 	rate for calendar year 2011. Hospitals shall cooperate with the plans in meeting this 
17.28 	performance target and shall accept payment withholds that must be returned to the 
17.29 	hospitals if the performance target is achieved.
17.30 	(g) A managed care plan or a county-based purchasing plan under section 256B.692 
17.31 	may include as admitted assets under section 62D.044 any amount withheld under this 
17.32 	section that is reasonably expected to be returned.

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

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

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

19.3 	ARTICLE 2
19.4 	DEPARTMENT OF HEALTH

19.5 	Section 1. Minnesota Statutes 2010, section 62D.02, subdivision 3, is amended to read:
19.6 		Subd. 3.Commissioner of health commerce or commissioner. "Commissioner of 
19.7 	health commerce" or "commissioner" means the state commissioner of health commerce
19.8 	or a designee.

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

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

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

20.12 	Sec. 3. Minnesota Statutes 2010, section 62D.12, subdivision 1, is amended to read:
20.13 		Subdivision 1.False representations. No health maintenance organization or 
20.14 	representative thereof may cause or knowingly permit the use of advertising or solicitation 
20.15 	which is untrue or misleading, or any form of evidence of coverage which is deceptive. 
20.16 	Each health maintenance organization shall be subject to sections 72A.17 to 72A.32, 
20.17 	relating to the regulation of trade practices, except (a) to the extent that the nature of a 
20.18 	health maintenance organization renders such sections clearly inappropriate and (b) that 
20.19 	enforcement shall be by the commissioner of health and not by the commissioner of 
20.20 	commerce. Every health maintenance organization shall be subject to sections 8.31 and 
20.21 	325F.69.

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

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

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

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

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

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

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

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

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

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

31.26 	Sec. 9. Minnesota Statutes 2010, section 62U.04, subdivision 5, is amended to read:
31.27 		Subd. 5.Pricing data. (a) Beginning July 1, 2009, and annually on January 1 
31.28 	thereafter, all health plan companies and third-party administrators shall submit data 
31.29 	on their contracted prices with health care providers to a private entity designated by 
31.30 	the commissioner of health for the purposes of performing the analyses required under 
31.31 	this subdivision. The data shall be submitted in the form and manner specified by the 
31.32 	commissioner of health.
31.33 	(b) The commissioner or the commissioner's designee shall only use the data 
31.34 	submitted under this subdivision for the purpose of carrying out its responsibilities under 
31.35 	this section to carry out its responsibilities under this section, including supplying the 
32.1 	data to providers so they can verify their results of the peer grouping process consistent 
32.2 	with the findings specified under subdivision 3c, paragraph (d), and, if necessary, submit 
32.3 	comments to the commissioner or initiate an appeal.
32.4 	(c) Data collected under this subdivision are nonpublic data as defined in section 
32.5 	13.02. Notwithstanding the definition of summary data in section 13.02, subdivision 19, 
32.6 	summary data prepared under this section may be derived from nonpublic data. The 
32.7 	commissioner shall establish procedures and safeguards to protect the integrity and 
32.8 	confidentiality of any data that it maintains.

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

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

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

33.4 	Sec. 11. Minnesota Statutes 2010, section 144.1222, is amended by adding a 
33.5 	subdivision to read:
33.6 		Subd. 6.Exemption. The natural swimming pond project known as Webber Lake 
33.7 	in the city of Minneapolis is exempt from this chapter and Minnesota Rules, chapter 
33.8 	4717, for the purpose of allowing a swimming pool that uses an alternative, nonchemical 
33.9 	filtration system to eliminate pathogens through natural processes. If the commissioner 
33.10 	determines that this project is unable to provide a safe swimming environment, the 
33.11 	commissioner shall rescind this exemption.

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

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

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

35.3 	Sec. 14. Minnesota Statutes 2010, section 144.293, subdivision 2, is amended to read:
35.4 		Subd. 2.Patient consent to release of records. A provider, or a person who 
35.5 	receives health records from a provider, may not release a patient's health records to a 
35.6 	person without:
35.7 	(1) a signed and dated consent from the patient or the patient's legally authorized 
35.8 	representative authorizing the release;
35.9 	(2) specific authorization in law; or
35.10 	(3) in the case of a medical emergency, a representation from a provider that holds a 
35.11 	signed and dated consent from the patient authorizing the release.

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

35.28 	Sec. 16. Minnesota Statutes 2010, section 256B.0754, subdivision 2, is amended to 
35.29 	read:
35.30 		Subd. 2.Payment reform. By no later than 12 months after the commissioner of 
35.31 	health publishes the information in section 62U.04, subdivision 3, paragraph (e) 62U.04, 
35.32 	subdivision 3c, paragraph (b), the commissioner of human services shall may use the 
36.1 	information and methods developed under section 62U.04 to establish a payment system 
36.2 	that:
36.3 	(1) rewards high-quality, low-cost providers;
36.4 	(2) creates enrollee incentives to receive care from high-quality, low-cost providers; 
36.5 	and
36.6 	(3) fosters collaboration among providers to reduce cost shifting from one part of 
36.7 	the health continuum to another.

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

36.9 	Sec. 17. EVALUATION OF HEALTH AND HUMAN SERVICES REGULATORY 
36.10 	RESPONSIBILITIES.
 36.11 	Relating to the evaluations and legislative report completed pursuant to Laws 
36.12 	2011, First Special Session chapter 9, article 2, section 26, the following activities must 
36.13 	be completed:
36.14 	(1) the commissioners of health and human services must update, revise, and 
36.15 	link the contents of their Web sites related to supervised living facilities, intermediate 
36.16 	care facilities for the developmentally disabled, nursing facilities, board and lodging 
36.17 	establishments, and human services licensed programs so that consumers and providers 
36.18 	can access consistent clear information about the regulations affecting these facilities; and
36.19 	(2) the commissioner of management and budget, in consultation with the 
36.20 	commissioners of health and human services, must evaluate and recommend options 
36.21 	for administering health and human services regulations. The evaluation and 
36.22 	recommendations must be submitted in a report to the legislative committees with 
36.23 	jurisdiction over health and human services no later than August 1, 2013, and shall at a 
36.24 	minimum: (i) identify and evaluate the regulatory responsibilities of the Departments 
36.25 	of Health and Human Services to determine whether to reorganize these regulatory 
36.26 	responsibilities to improve how the state administers health and human services 
36.27 	regulatory functions, or whether there are ways to improve these regulatory activities 
36.28 	without reorganizing; (ii) describe and evaluate the multiple roles of the Department of 
36.29 	Human Services as a direct provider of care services, a regulator, and a payor for state 
36.30 	program services; and (iii) for long-term care regulated in both departments, evaluate and 
36.31 	make recommendations for reasonable client risk assessments, planning for client risk 
36.32 	reductions, and determining reasonable assumptions of client risks in relation to directing 
36.33 	health care, client health care rights, provider liabilities, and provider responsibilities to 
36.34 	provide minimum standards of care.

37.1 	Sec. 18. STUDY OF FOR-PROFIT HEALTH MAINTENANCE 
37.2 	ORGANIZATIONS.
 37.3 	The commissioner of health shall contract with an entity with expertise in health 
37.4 	economics and health care delivery and quality to study the efficiency, costs, service 
37.5 	quality, and enrollee satisfaction of for-profit health maintenance organizations, relative to 
37.6 	not-for-profit health maintenance organizations operating in Minnesota and other states. 
37.7 	The study findings must address whether the state could: (1) reduce medical assistance 
37.8 	and MinnesotaCare costs and costs of providing coverage to state employees; and (2) 
37.9 	maintain or improve the quality of care provided to state health care program enrollees and 
37.10 	state employees if for-profit health maintenance organizations were allowed to operate in 
37.11 	the state. The commissioner shall require the entity under contract to report study findings 
37.12 	to the commissioner and the legislature by January 15, 2013.

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

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

37.19 	Sec. 20. LICENSED HOME CARE PROVIDERS.
 37.20 	By February 1, 2013, the commissioner of health must report recommendations to 
37.21 	the legislature as to development of a comprehensive home care plan to increase inspection 
37.22 	and oversight of licensed home care providers under Minnesota Statutes, chapter 144A.

37.23 	ARTICLE 3
37.24 	CHILDREN AND FAMILY SERVICES

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

38.27 	EFFECTIVE DATE. This section is effective September 3, 2012.

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

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

40.2 	Sec. 3. Minnesota Statutes 2010, section 256.01, is amended by adding a subdivision 
40.3 	to read:
40.4 		Subd. 18c.Drug convictions. (a) The state court administrator shall report every 
40.5 	six months by electronic means to the commissioner of human services the name, address, 
40.6 	date of birth, and, if available, driver's license or state identification card number, date 
40.7 	of sentence, effective date of the sentence, and county in which the conviction occurred 
40.8 	of each individual who has been convicted of a felony under chapter 152 during the 
40.9 	previous six months.
40.10 	(b) The commissioner shall determine whether the individuals who are the subject of 
40.11 	the data reported under paragraph (a) are receiving public assistance under chapter 256D 
40.12 	or 256J, and if any individual is receiving assistance under chapter 256D or 256J, the 
40.13 	commissioner shall instruct the county to proceed under section 256D.024 or 256J.26, 
40.14 	whichever is applicable, for this individual.
40.15 	(c) The commissioner shall not retain any data received under paragraph (a) that 
40.16 	does not relate to an individual receiving publicly funded assistance under chapter 256D 
40.17 	or 256J.
40.18 	(d) In addition to the routine data transfer under paragraph (a), the state court 
40.19 	administrator shall provide a onetime report of the data fields under paragraph (a) for 
40.20 	individuals with a felony drug conviction under chapter 152 dated from July 1, 1997, until 
40.21 	the date of the data transfer. The commissioner shall perform the tasks identified under 
40.22 	paragraph (b) related to this data and shall retain the data according to paragraph (c).

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

40.24 	Sec. 4. Minnesota Statutes 2010, section 256.01, is amended by adding a subdivision 
40.25 	to read:
40.26 		Subd. 18d.Data sharing with Department of Human Services; multiple 
40.27 	identification cards. (a) The commissioner of public safety shall, on a monthly basis, 
40.28 	provide the commissioner of human services with the first, middle, and last name, 
40.29 	the address, date of birth, and driver's license or state identification card number of all 
40.30 	applicants and holders whose drivers' licenses and state identification cards have been 
40.31 	canceled under section 171.14, paragraph (a), clause (2) or (3), by the commissioner of 
40.32 	public safety. After the initial data report has been provided by the commissioner of 
40.33 	public safety to the commissioner of human services under this paragraph, subsequent 
41.1 	reports shall only include cancellations that occurred after the end date of the cancellations 
41.2 	represented in the previous data report.
41.3 	(b) The commissioner of human services shall compare the information provided 
41.4 	under paragraph (a) with the commissioner's data regarding recipients of all public 
41.5 	assistance programs managed by the Department of Human Services to determine whether 
41.6 	any individual with multiple identification cards issued by the Department of Public 
41.7 	Safety has illegally or improperly enrolled in any public assistance program managed by 
41.8 	the Department of Human Services.
41.9 	(c) If the commissioner of human services determines that an applicant or recipient 
41.10 	has illegally or improperly enrolled in any public assistance program, the commissioner 
41.11 	shall provide all due process protections to the individual before terminating the individual 
41.12 	from the program according to applicable statute and notifying the county attorney.

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

41.14 	Sec. 5. Minnesota Statutes 2010, section 256.01, is amended by adding a subdivision 
41.15 	to read:
41.16 		Subd. 18e.Data sharing with Department of Human Services; legal presence 
41.17 	status. (a) The commissioner of public safety shall, on a monthly basis, provide the 
41.18 	commissioner of human services with the first, middle, and last name, address, date of 
41.19 	birth, and driver's license or state identification number of all applicants and holders of 
41.20 	drivers' licenses and state identification cards whose temporary legal presence status has 
41.21 	expired and whose driver's license or identification card has been canceled under section 
41.22 	171.14 by the commissioner of public safety.
41.23 	(b) The commissioner of human services shall use the information provided under 
41.24 	paragraph (a) to determine whether the eligibility of any recipients of public assistance 
41.25 	programs managed by the Department of Human Services has changed as a result of the 
41.26 	status change in the Department of Public Safety data.
41.27 	(c) If the commissioner of human services determines that a recipient has illegally or 
41.28 	improperly received benefits from any public assistance program, the commissioner shall 
41.29 	provide all due process protections to the individual before terminating the individual from 
41.30 	the program according to applicable statute and notifying the county attorney.

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

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

42.10 	Sec. 7. Minnesota Statutes 2011 Supplement, section 256.987, subdivision 2, is 
42.11 	amended to read:
42.12 		Subd. 2.Prohibited purchases. An individual with an EBT debit cardholders in
42.13 	card issued for one of the programs listed under subdivision 1 are is prohibited from using 
42.14 	the EBT debit card to purchase tobacco products and alcoholic beverages, as defined in 
42.15 	section 340A.101, subdivision 2. It is unlawful for an EBT cardholder to purchase or 
42.16 	attempt to purchase tobacco products or alcoholic beverages with the cardholder's EBT 
42.17 	card. Any unlawful use prohibited purchases made under this subdivision shall constitute 
42.18 	fraud unlawful use and result in disqualification of the cardholder from the program under 
42.19 	section 256.98, subdivision 8 as provided in subdivision 4.

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

42.26 	EFFECTIVE DATE. This section is effective March 1, 2013.

42.27 	Sec. 9. Minnesota Statutes 2011 Supplement, section 256.987, is amended by adding a 
42.28 	subdivision to read:
42.29 		Subd. 4.Disqualification. (a) Any person found to be guilty of purchasing tobacco 
42.30 	products or alcoholic beverages with their EBT debit card by a federal or state court or 
42.31 	by an administrative hearing determination, or waiver thereof, through a disqualification 
42.32 	consent agreement, or as part of any approved diversion plan under section 401.065, or 
42.33 	any court-ordered stay which carries with it any probationary or other conditions, in 
43.1 	the: (1) Minnesota family investment program and any affiliated program to include the 
43.2 	diversionary work program and the work participation cash benefit program under chapter 
43.3 	256J; (2) general assistance program under chapter 256D; or (3) Minnesota supplemental 
43.4 	aid program under chapter 256D, shall be disqualified from all of the listed programs.
43.5 	(b) The needs of the disqualified individual shall not be taken into consideration 
43.6 	in determining the grant level for that assistance unit: (1) for one year after the first 
43.7 	offense; (2) for two years after the second offense; and (3) permanently after the third or 
43.8 	subsequent offense.
43.9 	(c) The period of program disqualification shall begin on the date stipulated on the 
43.10 	advance notice of disqualification without possibility for postponement for administrative 
43.11 	stay or administrative hearing and shall continue through completion unless and until the 
43.12 	findings upon which the sanctions were imposed are reversed by a court of competent 
43.13 	jurisdiction. The period for which sanctions are imposed is not subject to review.

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

43.15 	Sec. 10. Minnesota Statutes 2010, section 256D.06, subdivision 1b, is amended to read:
43.16 		Subd. 1b.Earned income savings account. In addition to the $50 disregard 
43.17 	required under subdivision 1, the county agency shall disregard an additional earned 
43.18 	income up to a maximum of $150 $500 per month for: (1) persons residing in facilities 
43.19 	licensed under Minnesota Rules, parts 9520.0500 to 9520.0690 and 9530.2500 to 
43.20 	9530.4000, and for whom discharge and work are part of a treatment plan; (2) persons 
43.21 	living in supervised apartments with services funded under Minnesota Rules, parts 
43.22 	9535.0100 to 9535.1600, and for whom discharge and work are part of a treatment plan; 
43.23 	and (3) persons residing in group residential housing, as that term is defined in section 
43.24 	256I.03, subdivision 3, for whom the county agency has approved a discharge plan 
43.25 	which includes work. The additional amount disregarded must be placed in a separate 
43.26 	savings account by the eligible individual, to be used upon discharge from the residential 
43.27 	facility into the community. For individuals residing in a chemical dependency program 
43.28 	licensed under Minnesota Rules, part 9530.4100, subpart 22, item D, withdrawals from 
43.29 	the savings account require the signature of the individual and for those individuals with 
43.30 	an authorized representative payee, the signature of the payee. A maximum of $1,000
43.31 	$2,000, including interest, of the money in the savings account must be excluded from 
43.32 	the resource limits established by section 256D.08, subdivision 1, clause (1). Amounts in 
43.33 	that account in excess of $1,000 $2,000 must be applied to the resident's cost of care. If 
43.34 	excluded money is removed from the savings account by the eligible individual at any 
43.35 	time before the individual is discharged from the facility into the community, the money is 
44.1 	income to the individual in the month of receipt and a resource in subsequent months. If 
44.2 	an eligible individual moves from a community facility to an inpatient hospital setting, 
44.3 	the separate savings account is an excluded asset for up to 18 months. During that time, 
44.4 	amounts that accumulate in excess of the $1,000 $2,000 savings limit must be applied to 
44.5 	the patient's cost of care. If the patient continues to be hospitalized at the conclusion of the 
44.6 	18-month period, the entire account must be applied to the patient's cost of care.

44.7 	EFFECTIVE DATE. This section is effective October 1, 2012.

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

44.20 	Sec. 12. Minnesota Statutes 2011 Supplement, section 256E.35, subdivision 6, is 
44.21 	amended to read:
44.22 		Subd. 6.Withdrawal; matching; permissible uses. (a) To receive a match, a 
44.23 	participating household must transfer funds withdrawn from a family asset account to its 
44.24 	matching fund custodial account held by the fiscal agent, according to the family asset 
44.25 	agreement. The fiscal agent must determine if the match request is for a permissible use 
44.26 	consistent with the household's family asset agreement.
44.27 	The fiscal agent must ensure the household's custodial account contains the 
44.28 	applicable matching funds to match the balance in the household's account, including 
44.29 	interest, on at least a quarterly basis and at the time of an approved withdrawal. Matches 
44.30 	must be provided as follows:
44.31 	(1) from state grant and TANF funds, a matching contribution of $1.50 for every 
44.32 	$1 of funds withdrawn from the family asset account equal to the lesser of $720 per 
44.33 	year or a $3,000 lifetime limit; and 
45.1 	(2) from nonstate funds, a matching contribution of no less than $1.50 for every $1 
45.2 	of funds withdrawn from the family asset account equal to the lesser of $720 per year or 
45.3 	a $3,000 lifetime limit.
45.4 	(b) Upon receipt of transferred custodial account funds, the fiscal agent must make a 
45.5 	direct payment to the vendor of the goods or services for the permissible use.

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

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

46.25 	Sec. 15. Minnesota Statutes 2010, section 256I.05, subdivision 1e, is amended to read:
46.26 		Subd. 1e.Supplementary rate for certain facilities. (a) Notwithstanding the 
46.27 	provisions of subdivisions 1a and 1c, beginning July 1, 2005, a county agency shall 
46.28 	negotiate a supplementary rate in addition to the rate specified in subdivision 1, not to 
46.29 	exceed $700 per month, including any legislatively authorized inflationary adjustments, 
46.30 	for a group residential housing provider that:
46.31 	(1) is located in Hennepin County and has had a group residential housing contract 
46.32 	with the county since June 1996;
46.33 	(2) operates in three separate locations a 75-bed facility, a 50-bed facility, and a 
46.34 	26-bed facility; and
47.1 	(3) serves a chemically dependent clientele, providing 24 hours per day supervision 
47.2 	and limiting a resident's maximum length of stay to 13 months out of a consecutive 
47.3 	24-month period.
47.4 	(b) Notwithstanding subdivisions 1a and 1c, beginning July 1, 2013, a county 
47.5 	agency shall negotiate a supplementary rate in addition to the rate specified in subdivision 
47.6 	1, not to exceed $700 per month, including any legislatively authorized inflationary 
47.7 	adjustments, for the group residential provider described under paragraph (a), not to 
47.8 	exceed an additional 175 beds.

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

47.10 	Sec. 16. Minnesota Statutes 2010, section 256J.26, subdivision 1, is amended to read:
47.11 		Subdivision 1.Person convicted of drug offenses. (a) Applicants or participants
47.12 	An individual who have has been convicted of a felony level drug offense committed after 
47.13 	July 1, 1997, may, if otherwise eligible, receive MFIP benefits subject to the following 
47.14 	conditions: during the previous ten years from the date of application or recertification is 
47.15 	subject to the following:
47.16 	(1) Benefits for the entire assistance unit must be paid in vendor form for shelter and 
47.17 	utilities during any time the applicant is part of the assistance unit.
47.18 	(2) The convicted applicant or participant shall be subject to random drug testing as 
47.19 	a condition of continued eligibility and following any positive test for an illegal controlled 
47.20 	substance is subject to the following sanctions:
47.21 	(i) for failing a drug test the first time, the residual amount of the participant's grant 
47.22 	after making vendor payments for shelter and utility costs, if any, must be reduced by an 
47.23 	amount equal to 30 percent of the MFIP standard of need for an assistance unit of the same 
47.24 	size. When a sanction under this subdivision is in effect, the job counselor must attempt 
47.25 	to meet with the person face-to-face. During the face-to-face meeting, the job counselor 
47.26 	must explain the consequences of a subsequent drug test failure and inform the participant 
47.27 	of the right to appeal the sanction under section 256J.40. If a face-to-face meeting is 
47.28 	not possible, the county agency must send the participant a notice of adverse action as 
47.29 	provided in section 256J.31, subdivisions 4 and 5, and must include the information 
47.30 	required in the face-to-face meeting; or
47.31 	(ii) for failing a drug test two times, the participant is permanently disqualified from 
47.32 	receiving MFIP assistance, both the cash and food portions. The assistance unit's MFIP 
47.33 	grant must be reduced by the amount which would have otherwise been made available to 
47.34 	the disqualified participant. Disqualification under this item does not make a participant 
47.35 	ineligible for food stamps or food support. Before a disqualification under this provision is 
48.1 	imposed, the job counselor must attempt to meet with the participant face-to-face. During 
48.2 	the face-to-face meeting, the job counselor must identify other resources that may be 
48.3 	available to the participant to meet the needs of the family and inform the participant of 
48.4 	the right to appeal the disqualification under section 256J.40. If a face-to-face meeting is 
48.5 	not possible, the county agency must send the participant a notice of adverse action as 
48.6 	provided in section 256J.31, subdivisions 4 and 5, and must include the information 
48.7 	required in the face-to-face meeting.
48.8 	(3) A participant who fails a drug test the first time and is under a sanction due to 
48.9 	other MFIP program requirements is considered to have more than one occurrence of 
48.10 	noncompliance and is subject to the applicable level of sanction as specified under section 
48.11 	256J.46, subdivision 1, paragraph (d).
48.12 	(b) Applicants requesting only food stamps or food support or participants receiving 
48.13 	only food stamps or food support, who have been convicted of a drug offense that 
48.14 	occurred after July 1, 1997, may, if otherwise eligible, receive food stamps or food support 
48.15 	if the convicted applicant or participant is subject to random drug testing as a condition 
48.16 	of continued eligibility. Following a positive test for an illegal controlled substance, the 
48.17 	applicant is subject to the following sanctions:
48.18 	(1) for failing a drug test the first time, food stamps or food support shall be reduced 
48.19 	by an amount equal to 30 percent of the applicable food stamp or food support allotment. 
48.20 	When a sanction under this clause is in effect, a job counselor must attempt to meet with 
48.21 	the person face-to-face. During the face-to-face meeting, a job counselor must explain 
48.22 	the consequences of a subsequent drug test failure and inform the participant of the right 
48.23 	to appeal the sanction under section 256J.40. If a face-to-face meeting is not possible, 
48.24 	a county agency must send the participant a notice of adverse action as provided in 
48.25 	section 256J.31, subdivisions 4 and 5, and must include the information required in the 
48.26 	face-to-face meeting; and
48.27 	(2) for failing a drug test two times, the participant is permanently disqualified from 
48.28 	receiving food stamps or food support. Before a disqualification under this provision is 
48.29 	imposed, a job counselor must attempt to meet with the participant face-to-face. During 
48.30 	the face-to-face meeting, the job counselor must identify other resources that may be 
48.31 	available to the participant to meet the needs of the family and inform the participant of 
48.32 	the right to appeal the disqualification under section 256J.40. If a face-to-face meeting 
48.33 	is not possible, a county agency must send the participant a notice of adverse action as 
48.34 	provided in section 256J.31, subdivisions 4 and 5, and must include the information 
48.35 	required in the face-to-face meeting.
49.1 	(c) (b) For the purposes of this subdivision, "drug offense" means an offense that 
49.2 	occurred after July 1, 1997, during the previous ten years from the date of application 
49.3 	or recertification of sections 152.021 to 152.025, 152.0261, 152.0262, or152.096, or 
49.4 	152.137. Drug offense also means a conviction in another jurisdiction of the possession, 
49.5 	use, or distribution of a controlled substance, or conspiracy to commit any of these 
49.6 	offenses, if the offense occurred after July 1, 1997, during the previous ten years from 
49.7 	the date of application or recertification and the conviction is a felony offense in that 
49.8 	jurisdiction, or in the case of New Jersey, a high misdemeanor.

49.9 	EFFECTIVE DATE. This section is effective October 1, 2012, for all new MFIP 
49.10 	applicants who apply on or after that date and for all recertifications occurring on or 
49.11 	after that date.

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

49.22 	Sec. 18. Laws 2010, chapter 374, section 1, is amended to read:
49.23 	Section 1. LADDER OUT OF POVERTY ASSET DEVELOPMENT AND 
49.24 	FINANCIAL LITERACY TASK FORCE.
 49.25 		Subdivision 1.Creation. (a) The task force consists of the following members:
49.26 	(1) four senators, including two members of the majority party and two members of 
49.27 	the minority party, appointed by the Subcommittee on Committees of the Committee on 
49.28 	Rules and Administration of the senate;
49.29 	(2) four members of the house of representatives, including two members of the 
49.30 	majority party, appointed by the speaker of the house, and two members of the minority 
49.31 	party, appointed by the minority leader; and
49.32 	(3) the commissioner of the Minnesota Department of Commerce or the 
49.33 	commissioner's designee; and.
49.34 	(4) the attorney general or the attorney general's designee.
50.1 	(b) The task force shall ensure that representatives of the following have the 
50.2 	opportunity to meet with and present views to the task force: the attorney general; credit 
50.3 	unions; independent community banks; state and federal financial institutions; community 
50.4 	action agencies; faith-based financial counseling agencies; faith-based social justice 
50.5 	organizations; legal services organizations representing low-income persons; nonprofit 
50.6 	organizations providing free tax preparation services as part of the volunteer income tax 
50.7 	assistance program; relevant state and local agencies; University of Minnesota faculty 
50.8 	involved in personal and family financial education; philanthropic organizations that have 
50.9 	as one of their missions combating predatory lending; organizations representing older 
50.10 	Minnesotans; and organizations representing the interests of women, Latinos and Latinas, 
50.11 	African-Americans, Asian-Americans, American Indians, and immigrants.
50.12 		Subd. 2.Duties. (a) At a minimum, the task force must identify specific policies, 
50.13 	strategies, and actions to: reduce asset poverty and increase household financial security 
50.14 	by improving opportunities for households to earn, learn, save, invest, and protect 
50.15 	assets through expansion of such asset building opportunities as the Family Assets for 
50.16 	Independence in Minnesota (FAIM) program and Earned Income Tax Credit (EITC) 
50.17 	program.
50.18 	(1) increase opportunities for poor and near-poor families and individuals to acquire 
50.19 	assets and create and build wealth;
50.20 	(2) expand the utilization of Family Assets for Independence in Minnesota (FAIM) 
50.21 	or other culturally specific individual development account programs;
50.22 	(3) reduce or eliminate predatory financial practices in Minnesota through regulatory 
50.23 	actions, legislative enactments, and the development and deployment of alternative, 
50.24 	nonpredatory financial products;
50.25 	(4) provide incentives or assistance to private sector financial institutions to 
50.26 	offer additional programs and services that provide alternatives to and education about 
50.27 	predatory financial products;
50.28 	(5) provide financial literacy information to low-income families and individuals at 
50.29 	the time the recipient has the ability, opportunity, and motivation to receive, understand, 
50.30 	and act on the information provided; and
50.31 	(6) identify incentives and mechanisms to increase community engagement in 
50.32 	combating poverty and helping poor and near-poor families and individuals to acquire 
50.33 	assets and create and build wealth.
50.34 	For purposes of this section, "asset poverty" means an individual's or family's 
50.35 	inability to meet fixed financial obligations and other financial requirements of daily living 
51.1 	with existing assets for a three-month period in the event of a disruption in income or 
51.2 	extraordinary economic emergency.
51.3 	(b) By June 1, 2012 During the 2013 and 2014 legislative sessions, the task force 
51.4 	must provide the legislature with written recommendations and any draft legislation
51.5 	necessary to implement the recommendations to the chairs and ranking minority members 
51.6 	of the legislative committees and divisions with jurisdiction over commerce and consumer 
51.7 	protection fulfill the duties enumerated in paragraph (a). The recommendations may 
51.8 	include draft legislation.
51.9 		Subd. 3.Administrative provisions. (a) The director of the Legislative 
51.10 	Coordinating Commission, or a designee of the director, must convene the initial meeting 
51.11 	of the task force by September 15, 2010. The members of the task force must elect a chair 
51.12 	or cochairs from the legislative members at the initial meeting.
51.13 	(b) Members of the task force serve without compensation or payment of expenses 
51.14 	except as provided in this paragraph. To the extent possible, meetings of the task force 
51.15 	shall be scheduled on dates when legislative members of the task force are able to 
51.16 	attend legislative meetings that would make them eligible to receive legislative per diem 
51.17 	payments.
51.18 	(c) The task force expires June 1, 2012, or upon the submission of the report required 
51.19 	under subdivision 3, whichever is earlier 2014.
51.20 	(d) The task force may accept gifts and grants, which are accepted on behalf of the 
51.21 	state and constitute donations to the state. The funds must be deposited in an account in 
51.22 	the special revenue fund and are appropriated to the Legislative Coordinating Commission 
51.23 	for purposes of the task force.
51.24 	(e) The Legislative Coordinating Commission shall provide fiscal services to the 
51.25 	task force as needed under this subdivision.
51.26 		Subd. 4.Deadline for appointments and designations. The appointments and 
51.27 	designations authorized under this section must be completed no later than August 15, 
51.28 	2010 2012.

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

51.30 	Sec. 19. Laws 2011, First Special Session chapter 9, article 10, section 3, subdivision 
51.31 	1, is amended to read:

51.32	Subdivision 1.Total Appropriation
 	$
	6,259,280,000
	$
	6,212,085,000

51.33	Appropriations by Fund
	
51.34		2012
	2013
	
52.1	General
	5,657,737,000
	5,584,471,000
	
52.2
52.3	State Government 
Special Revenue
	3,565,000
	3,565,000
	
52.4	Health Care Access
	330,435,000
	353,283,000
	
52.5	Federal TANF
	265,378,000
	268,101,000
	
52.6	Lottery Prize
	1,665,000
	1,665,000
	
52.7	Special Revenue
	500,000
	1,000,000
	
52.8 	Receipts for Systems Projects. 
52.9 	Appropriations and federal receipts for 
52.10 	information systems projects for MAXIS, 
52.11 	PRISM, MMIS, and SSIS must be deposited 
52.12 	in the state systems account authorized in 
52.13 	Minnesota Statutes, section 256.014. Money 
52.14 	appropriated for computer projects approved 
52.15 	by the Minnesota Office of Enterprise 
52.16 	Technology, funded by the legislature, 
52.17 	and approved by the commissioner 
52.18 	of management and budget, may be 
52.19 	transferred from one project to another 
52.20 	and from development to operations as the 
52.21 	commissioner of human services considers 
52.22 	necessary. Any unexpended balance in 
52.23 	the appropriation for these projects does 
52.24 	not cancel but is available for ongoing 
52.25 	development and operations.
52.26 	Nonfederal Share Transfers. The 
52.27 	nonfederal share of activities for which 
52.28 	federal administrative reimbursement is 
52.29 	appropriated to the commissioner may be 
52.30 	transferred to the special revenue fund.
52.31 	TANF Maintenance of Effort.
52.32 	(a) In order to meet the basic maintenance 
52.33 	of effort (MOE) requirements of the TANF 
52.34 	block grant specified under Code of Federal 
52.35 	Regulations, title 45, section 263.1, the 
52.36 	commissioner may only report nonfederal 
53.1 	money expended for allowable activities 
53.2 	listed in the following clauses as TANF/MOE 
53.3 	expenditures:
53.4 	(1) MFIP cash, diversionary work program, 
53.5 	and food assistance benefits under Minnesota 
53.6 	Statutes, chapter 256J;
53.7 	(2) the child care assistance programs 
53.8 	under Minnesota Statutes, sections 119B.03
53.9 	and 119B.05, and county child care 
53.10 	administrative costs under Minnesota 
53.11 	Statutes, section 119B.15;
53.12 	(3) state and county MFIP administrative 
53.13 	costs under Minnesota Statutes, chapters 
53.14 	256J and 256K;
53.15 	(4) state, county, and tribal MFIP 
53.16 	employment services under Minnesota 
53.17 	Statutes, chapters 256J and 256K;
53.18 	(5) expenditures made on behalf of legal 
53.19 	noncitizen MFIP recipients who qualify for 
53.20 	the MinnesotaCare program under Minnesota 
53.21 	Statutes, chapter 256L;
53.22 	(6) qualifying working family credit 
53.23 	expenditures under Minnesota Statutes, 
53.24 	section 290.0671; and
53.25 	(7) qualifying Minnesota education credit 
53.26 	expenditures under Minnesota Statutes, 
53.27 	section 290.0674.
53.28 	(b) The commissioner shall ensure that 
53.29 	sufficient qualified nonfederal expenditures 
53.30 	are made each year to meet the state's 
53.31 	TANF/MOE requirements. For the activities 
53.32 	listed in paragraph (a), clauses (2) to 
53.33 	(7), the commissioner may only report 
53.34 	expenditures that are excluded from the 
54.1 	definition of assistance under Code of 
54.2 	Federal Regulations, title 45, section 260.31.
54.3 	(c) For fiscal years beginning with state fiscal 
54.4 	year 2003, the commissioner shall assure 
54.5 	that the maintenance of effort used by the 
54.6 	commissioner of management and budget 
54.7 	for the February and November forecasts 
54.8 	required under Minnesota Statutes, section 
54.9 	16A.103, contains expenditures under 
54.10 	paragraph (a), clause (1), equal to at least 16 
54.11 	percent of the total required under Code of 
54.12 	Federal Regulations, title 45, section 263.1.
54.13 	(d) Minnesota Statutes, section 256.011, 
54.14 	subdivision 3, which requires that federal 
54.15 	grants or aids secured or obtained under that 
54.16 	subdivision be used to reduce any direct 
54.17 	appropriations provided by law, do not apply 
54.18 	if the grants or aids are federal TANF funds.
54.19 	(e) For the federal fiscal years beginning on 
54.20 	or after October 1, 2007, the commissioner 
54.21 	may not claim an amount of TANF/MOE in 
54.22 	excess of the 75 percent standard in Code 
54.23 	of Federal Regulations, title 45, section 
54.24 	263.1(a)(2), except:
54.25 	(1) to the extent necessary to meet the 80 
54.26 	percent standard under Code of Federal 
54.27 	Regulations, title 45, section 263.1(a)(1), 
54.28 	if it is determined by the commissioner 
54.29 	that the state will not meet the TANF work 
54.30 	participation target rate for the current year; 
54.31 	(2) to provide any additional amounts 
54.32 	under Code of Federal Regulations, title 45, 
54.33 	section 264.5, that relate to replacement of 
54.34 	TANF funds due to the operation of TANF 
54.35 	penalties; and
55.1 	(3) to provide any additional amounts that 
55.2 	may contribute to avoiding or reducing 
55.3 	TANF work participation penalties through 
55.4 	the operation of the excess MOE provisions 
55.5 	of Code of Federal Regulations, title 45, 
55.6 	section 261.43 (a)(2). 
55.7 	For the purposes of clauses (1) to (3), 
55.8 	the commissioner may supplement the 
55.9 	MOE claim with working family credit 
55.10 	expenditures or other qualified expenditures 
55.11 	to the extent such expenditures are otherwise 
55.12 	available after considering the expenditures 
55.13 	allowed in this subdivision. 
55.14 	(f) Notwithstanding any contrary provision 
55.15 	in this article, paragraphs (a) to (e) expire 
55.16 	June 30, 2015.
55.17 	Working Family Credit Expenditures 
55.18 	as TANF/MOE. The commissioner may 
55.19 	claim as TANF maintenance of effort up to 
55.20 	$6,707,000 per year of working family credit 
55.21 	expenditures for fiscal years 2012 and 2013.
55.22 	Working Family Credit Expenditures 
55.23 	to be Claimed for TANF/MOE. The 
55.24 	commissioner may count the following 
55.25 	amounts of working family credit 
55.26 	expenditures as TANF/MOE:
55.27 	(1) fiscal year 2012, $23,692,000;
55.28 	(2) fiscal year 2013, $44,969,000;
55.29 	(3) fiscal year 2014, $32,579,000; and
55.30 	(4) fiscal year 2015, $32,476,000.
55.31 	Notwithstanding any contrary provision in 
55.32 	this article, this rider expires June 30, 2015.
55.33 	TANF Transfer to Federal Child Care 
55.34 	and Development Fund. (a) The following 
56.1 	TANF fund amounts are appropriated 
56.2 	to the commissioner for purposes of 
56.3 	MFIP/Transition Year Child Care Assistance 
56.4 	under Minnesota Statutes, section 119B.05:
56.5 	(1) fiscal year 2012, $10,020,000;
56.6 	(2) fiscal year 2013, $28,020,000
56.7 	$28,599,000;
56.8 	(3) fiscal year 2014, $14,020,000
56.9 	$15,488,000; and
56.10 	(4) fiscal year 2015, $14,020,000
56.11 	$15,479,000.
56.12 	(b) The commissioner shall authorize the 
56.13 	transfer of sufficient TANF funds to the 
56.14 	federal child care and development fund to 
56.15 	meet this appropriation and shall ensure that 
56.16 	all transferred funds are expended according 
56.17 	to federal child care and development fund 
56.18 	regulations.
56.19 	Food Stamps Employment and Training 
56.20 	Funds. (a) Notwithstanding Minnesota 
56.21 	Statutes, sections 256D.051, subdivisions 1a, 
56.22 	6b, and 6c, and 256J.626, federal food stamps 
56.23 	employment and training funds received 
56.24 	as reimbursement for child care assistance 
56.25 	program expenditures must be deposited in 
56.26 	the general fund. The amount of funds must 
56.27 	be limited to $500,000 per year in fiscal 
56.28 	years 2012 through 2015, contingent upon 
56.29 	approval by the federal Food and Nutrition 
56.30 	Service.
56.31 	(b) Consistent with the receipt of these 
56.32 	federal funds, the commissioner may 
56.33 	adjust the level of working family credit 
56.34 	expenditures claimed as TANF maintenance 
57.1 	of effort. Notwithstanding any contrary 
57.2 	provision in this article, this rider expires 
57.3 	June 30, 2015.
57.4 	ARRA Food Support Benefit Increases. 
57.5 	The funds provided for food support benefit 
57.6 	increases under the Supplemental Nutrition 
57.7 	Assistance Program provisions of the 
57.8 	American Recovery and Reinvestment Act 
57.9 	(ARRA) of 2009 must be used for benefit 
57.10 	increases beginning July 1, 2009.
57.11 	Supplemental Security Interim Assistance 
57.12 	Reimbursement Funds. $2,800,000 of 
57.13 	uncommitted revenue available to the 
57.14 	commissioner of human services for SSI 
57.15 	advocacy and outreach services must be 
57.16 	transferred to and deposited into the general 
57.17 	fund by October 1, 2011.

57.18 	Sec. 20. GRANT PROGRAM TO PROMOTE HEALTHY COMMUNITY 
57.19 	INITIATIVES.
 57.20 	(a) The commissioner of human services must contract with the Search Institute to 
57.21 	help local communities develop, expand, and maintain the tools, training, and resources 
57.22 	needed to foster positive community development and effectively engage people in their 
57.23 	community. The Search Institute must: (1) provide training in community mobilization, 
57.24 	youth development, and assets getting to outcomes; (2) provide ongoing technical 
57.25 	assistance to communities receiving grants under this section; (3) use best practices to 
57.26 	promote community development; (4) share best program practices with other interested 
57.27 	communities; (5) create electronic and other opportunities for communities to share 
57.28 	experiences in and resources for promoting healthy community development; and (6) 
57.29 	provide an annual report of the strong communities project.
57.30 	(b) Specifically, the Search Institute must use a competitive grant process to select 
57.31 	four interested communities throughout Minnesota to undertake strong community 
57.32 	mobilization initiatives to support communities wishing to catalyze multiple sectors to 
57.33 	create or strengthen a community collaboration to address issues of poverty in their 
57.34 	communities. The Search Institute must provide the selected communities with the 
57.35 	tools, training, and resources they need for successfully implementing initiatives focused 
58.1 	on strengthening the community. The Search Institute also must use a competitive 
58.2 	grant process to provide four strong community innovation grants to encourage current 
58.3 	community initiatives to bring new innovative approaches to their work to reduce poverty. 
58.4 	Finally, the Search Institute must work to strengthen networking and information sharing 
58.5 	activities among all healthy community initiatives throughout Minnesota, including 
58.6 	sharing best program practices and providing personal and electronic opportunities for 
58.7 	peer learning and ongoing program support.
58.8 	(c) In order to receive a grant under paragraph (b), a community must show 
58.9 	involvement of at least three sectors of their community and the active leadership of both 
58.10 	youth and adults. Sectors may include, but are not limited to, local government, schools, 
58.11 	community action agencies, faith communities, businesses, higher education institutions, 
58.12 	and the medical community. In addition, communities must agree to: (1) attend training 
58.13 	on community mobilization processes and strength-based approaches; (2) apply the assets 
58.14 	getting to outcomes process in their initiative; (3) meet at least two times during the 
58.15 	grant period to share successes and challenges with other grantees; (4) participate on an 
58.16 	electronic listserv to share information throughout the period on their work; and (5) all 
58.17 	communication requirements and reporting processes.
58.18 	(d) The commissioner of human services must evaluate the effectiveness of this 
58.19 	program and must recommend to the committees of the legislature with jurisdiction over 
58.20 	health and human services reform and finance by February 15, 2013, whether or not 
58.21 	to make the program available statewide. The Search Institute annually must report to 
58.22 	the commissioner of human services on the services it provided and the grant money 
58.23 	it expended under this section.

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

58.25 	Sec. 21. CIRCLES OF SUPPORT GRANTS.
 58.26 	The commissioner of human services must provide grants to community action 
58.27 	agencies to help local communities develop, expand, and maintain the tools, training, and 
58.28 	resources needed to foster social assets to assist people out of poverty through circles of 
58.29 	support. The circles of support model must provide a framework for a community to build 
58.30 	relationships across class and race lines so that people can work together to advocate for 
58.31 	change in their communities and move individuals toward self-sufficiency.
58.32 	Specifically, circles of support initiatives must focus on increasing social capital, 
58.33 	income, educational attainment, and individual accountability, while reducing debt, 
58.34 	service dependency, and addressing systemic disparities that hold poverty in place. The 
59.1 	effort must support the development of local guiding coalitions as the link between the 
59.2 	community and circles of support for resource development and funding leverage.

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

59.4 	Sec. 22. MINNESOTA VISIBLE CHILD WORK GROUP.
 59.5 		Subdivision 1.Purpose. The Minnesota visible child work group is established to 
59.6 	identify and recommend issues that should be addressed in a statewide, comprehensive 
59.7 	plan to improve the well-being of children who are homeless or have experienced 
59.8 	homelessness.
59.9 		Subd. 2.Membership. The members of the Minnesota visible child work group 
59.10 	include: (1) two members of the Minnesota house of representatives appointed by 
59.11 	the speaker of the house, one member from the majority party and one member from 
59.12 	the minority party; (2) two members of the Minnesota senate appointed by the senate 
59.13 	Subcommittee on Committees of the Committee on Rules and Administration, one 
59.14 	member from the majority party and one member from the minority party; (3) three 
59.15 	representatives from family shelter, transitional housing, and supportive housing providers 
59.16 	appointed by the governor; (4) two individuals appointed by the governor who have 
59.17 	experienced homelessness; (5) three housing and child advocates appointed by the 
59.18 	governor; (6) three representatives from the business or philanthropic community; and (7) 
59.19 	children's cabinet members, or their designees. Work group membership should include 
59.20 	people from rural, suburban, and urban areas of the state.
59.21 		Subd. 3.Duties. The work group shall: (1) recommend goals and objectives for a 
59.22 	comprehensive, statewide plan to improve the well-being of children who are homeless or 
59.23 	who have experienced homelessness; (2) recommend a definition of "child well-being"; 
59.24 	(3) identify evidence-based interventions and best practices improving the well-being 
59.25 	of young children; (4) plan implementation timelines and ways to measure progress, 
59.26 	including measures of child well-being from birth through adolescence; (5) identify ways 
59.27 	to address issues of collaboration and coordination across systems, including education, 
59.28 	health, human services, and housing; (6) recommend the type of data and information 
59.29 	necessary to develop, effectively implement, and monitor a strategic plan; (7) examine and 
59.30 	make recommendations regarding funding to implement an effective plan; and (8) provide 
59.31 	recommendations for ongoing reports on the well-being of children, monitoring progress 
59.32 	in implementing the statewide comprehensive plan, and any other issues determined to be 
59.33 	relevant to achieving the goals of this section.
59.34 		Subd. 4.Work group convening and facilitation. The work group must be 
59.35 	organized, scheduled, and facilitated by the staff of a nonprofit child advocacy, outreach, 
60.1 	research, and youth development organization focusing on a wide range of issues 
60.2 	affecting children who are vulnerable, and a nonprofit organization working to provide 
60.3 	safe, affordable, and sustainable homes for children and families in the seven-county 
60.4 	metropolitan area through partnerships with the public and private sector. These two 
60.5 	organizations will also be responsible for preparing and submitting the work group's 
60.6 	recommendations.
60.7 		Subd. 5.Report. The work group shall make recommendations under subdivision 
60.8 	3 to the legislative committees with jurisdiction over education, housing, health, and 
60.9 	human services policy and finance by December 15, 2012. The recommendations must 
60.10 	also be submitted to the children's cabinet to provide the foundation for a statewide 
60.11 	visible child plan.
60.12 		Subd. 6.Expiration. The Minnesota visible child work group expires on June 
60.13 	30, 2013.

60.14 	Sec. 23. UNIFORM ASSET LIMIT REQUIREMENTS.
 60.15 	The commissioner of human services, in consultation with county human 
60.16 	services representatives, shall analyze the differences in asset limit requirements across 
60.17 	human services assistance programs, including group residential housing, Minnesota 
60.18 	supplemental aid, general assistance, Minnesota family investment program, diversionary 
60.19 	work program, the federal Supplemental Nutrition Assistance Program, state food 
60.20 	assistance programs, and child care programs. The goal of the analysis is to establish a 
60.21 	consistent asset limit across human services programs and minimize the administrative 
60.22 	burdens on counties in implementing asset tests. The commissioner shall report its 
60.23 	findings and conclusions to the legislative committees with jurisdiction over health and 
60.24 	human services policy and finance by January 15, 2013, and include draft legislation 
60.25 	establishing a uniform asset limit for human services assistance programs.

60.26 	Sec. 24. DIRECTION TO THE COMMISSIONER.
 60.27 	The commissioner of human services, in consultation with the commissioner of 
60.28 	public safety, shall report to the legislative committees with jurisdiction over health and 
60.29 	human services policy and finance regarding the implementations of Minnesota Statutes, 
60.30 	section 256.01, subdivisions 18c, 18d, and 18e, and the number of persons affected and 
60.31 	fiscal impact by program by April 1, 2013.

60.32 	Sec. 25. REVISOR INSTRUCTION.
 61.1 	The revisor of statutes shall change the term "assistance transaction card" or 
61.2 	similar terms to "electronic benefit transaction" or similar terms wherever they appear in 
61.3 	Minnesota Statutes, chapter 256. The revisor may make changes necessary to correct the 
61.4 	punctuation, grammar, or structure of the remaining text and preserve its meaning.

61.5 	ARTICLE 4
61.6 	CONTINUING CARE

61.7 	Section 1. Minnesota Statutes 2010, section 62J.496, subdivision 2, is amended to read:
61.8 		Subd. 2.Eligibility. (a) "Eligible borrower" means one of the following:
61.9 	(1) federally qualified health centers;
61.10 	(2) community clinics, as defined under section 145.9268;
61.11 	(3) nonprofit or local unit of government hospitals licensed under sections 144.50 
61.12 	to 144.56;
61.13 	(4) individual or small group physician practices that are focused primarily on 
61.14 	primary care;
61.15 	(5) nursing facilities licensed under sections 144A.01 to 144A.27;
61.16 	(6) local public health departments as defined in chapter 145A; and
61.17 	(7) other providers of health or health care services approved by the commissioner 
61.18 	for which interoperable electronic health record capability would improve quality of 
61.19 	care, patient safety, or community health.
61.20 	(b) The commissioner shall administer the loan fund to prioritize support and 
61.21 	assistance to:
61.22 	(1) critical access hospitals;
61.23 	(2) federally qualified health centers;
61.24 	(3) entities that serve uninsured, underinsured, and medically underserved 
61.25 	individuals, regardless of whether such area is urban or rural; and
61.26 	(4) individual or small group practices that are primarily focused on primary care.;
61.27 	(5) nursing facilities certified to participate in the medical assistance program; and
61.28 	(6) providers enrolled in the elderly waiver program of customized living or 24-hour 
61.29 	customized living of the medical assistance program, if at least half of their annual 
61.30 	operating revenue is paid under the medical assistance program.
61.31 	(c) An eligible applicant must submit a loan application to the commissioner of 
61.32 	health on forms prescribed by the commissioner. The application must include, at a 
61.33 	minimum:
61.34 	(1) the amount of the loan requested and a description of the purpose or project 
61.35 	for which the loan proceeds will be used;
62.1 	(2) a quote from a vendor;
62.2 	(3) a description of the health care entities and other groups participating in the 
62.3 	project;
62.4 	(4) evidence of financial stability and a demonstrated ability to repay the loan; and
62.5 	(5) a description of how the system to be financed interoperates or plans in the 
62.6 	future to interoperate with other health care entities and provider groups located in the 
62.7 	same geographical area;
62.8 	(6) a plan on how the certified electronic health record technology will be maintained 
62.9 	and supported over time; and
62.10 	(7) any other requirements for applications included or developed pursuant to 
62.11 	section 3014 of the HITECH Act.

62.12 	Sec. 2. Minnesota Statutes 2010, section 144A.351, is amended to read:
62.13 	144A.351 BALANCING LONG-TERM CARE SERVICES AND SUPPORTS: 
62.14 	REPORT REQUIRED.
62.15 	The commissioners of health and human services, in consultation with the 
62.16 	cooperation of counties and stakeholders, including persons who need or are using 
62.17 	long-term care services and supports, lead agencies, regional entities, senior, disability, 
62.18 	and mental health organization representatives, service providers, community members, 
62.19 	including local businesses, and faith-based representatives shall prepare a report to the 
62.20 	legislature by August 15, 2004 2013, and biennially thereafter, regarding the status of the 
62.21 	full range of long-term care services and supports for the elderly and children and adults 
62.22 	with disabilities in Minnesota. The report shall address:
62.23 	(1) demographics and need for long-term care services and supports in Minnesota;
62.24 	(2) summary of county and regional reports on long-term care gaps, surpluses, 
62.25 	imbalances, and corrective action plans;
62.26 	(3) status of long-term care services and mental illnesses by county and region 
62.27 	including:
62.28 	(i) changes in availability of the range of long-term care services and housing 
62.29 	options;
62.30 	(ii) access problems regarding long-term care services; and
62.31 	(iii) comparative measures of long-term care services availability and progress
62.32 	changes over time; and
62.33 	(4) recommendations regarding goals for the future of long-term care services and 
62.34 	supports, policy and fiscal changes, and resource needs.

63.1 	Sec. 3. Minnesota Statutes 2010, section 144D.04, subdivision 2, is amended to read:
63.2 		Subd. 2.Contents of contract.  A housing with services contract, which need not be 
63.3 	entitled as such to comply with this section, shall include at least the following elements 
63.4 	in itself or through supporting documents or attachments:
63.5 	(1) the name, street address, and mailing address of the establishment;
63.6 	(2) the name and mailing address of the owner or owners of the establishment and, if 
63.7 	the owner or owners is not a natural person, identification of the type of business entity 
63.8 	of the owner or owners;
63.9 	(3) the name and mailing address of the managing agent, through management 
63.10 	agreement or lease agreement, of the establishment, if different from the owner or owners;
63.11 	(4) the name and address of at least one natural person who is authorized to accept 
63.12 	service of process on behalf of the owner or owners and managing agent;
63.13 	(5) a statement describing the registration and licensure status of the establishment 
63.14 	and any provider providing health-related or supportive services under an arrangement 
63.15 	with the establishment;
63.16 	(6) the term of the contract;
63.17 	(7) a description of the services to be provided to the resident in the base rate to be 
63.18 	paid by resident, including a delineation of the portion of the base rate that constitutes rent 
63.19 	and a delineation of charges for each service included in the base rate;
63.20 	(8) a description of any additional services, including home care services, available 
63.21 	for an additional fee from the establishment directly or through arrangements with the 
63.22 	establishment, and a schedule of fees charged for these services;
63.23 	(9) a description of the process through which the contract may be modified, 
63.24 	amended, or terminated, including whether a move to a different room or sharing a room 
63.25 	would be required in the event that the tenant can no longer pay the current rent;
63.26 	(10) a description of the establishment's complaint resolution process available 
63.27 	to residents including the toll-free complaint line for the Office of Ombudsman for 
63.28 	Long-Term Care;
63.29 	(11) the resident's designated representative, if any;
63.30 	(12) the establishment's referral procedures if the contract is terminated;
63.31 	(13) requirements of residency used by the establishment to determine who may 
63.32 	reside or continue to reside in the housing with services establishment;
63.33 	(14) billing and payment procedures and requirements;
63.34 	(15) a statement regarding the ability of residents to receive services from service 
63.35 	providers with whom the establishment does not have an arrangement;
64.1 	(16) a statement regarding the availability of public funds for payment for residence 
64.2 	or services in the establishment; and
64.3 	(17) a statement regarding the availability of and contact information for 
64.4 	long-term care consultation services under section 256B.0911 in the county in which the 
64.5 	establishment is located.

64.6 	Sec. 4. Minnesota Statutes 2010, section 245A.03, is amended by adding a subdivision 
64.7 	to read:
64.8 		Subd. 6a.Adult foster care homes serving people with mental illness; 
64.9 	certification. (a) The commissioner of human services shall issue a mental health 
64.10 	certification for adult foster care homes licensed under this chapter and Minnesota Rules, 
64.11 	parts 9555.5105 to 9555.6265, that serve people with mental illness where the home is not 
64.12 	the primary residence of the license holder when a provider is determined to have met 
64.13 	the requirements under paragraph (b). This certification is voluntary for license holders. 
64.14 	The certification shall be printed on the license, and identified on the commissioner's 
64.15 	public Web site.
64.16 	(b) The requirements for certification are:
64.17 	(1) all staff working in the adult foster care home have received at least seven hours 
64.18 	of annual training covering all of the following topics:
64.19 	(i) mental health diagnoses;
64.20 	(ii) mental health crisis response and de-escalation techniques;
64.21 	(iii) recovery from mental illness;
64.22 	(iv) treatment options including evidence-based practices;
64.23 	(v) medications and their side effects;
64.24 	(vi) co-occurring substance abuse and health conditions; and
64.25 	(vii) community resources; and
64.26 	(2) a mental health professional, as defined in section 245.462, subdivision 18, or 
64.27 	a mental health practitioner as defined in section 245.462, subdivision 17, are available 
64.28 	for consultation and assistance;
64.29 	(3) there is a plan and protocol in place to address a mental health crisis; and
64.30 	(4) each individual's individual placement agreement identifies who is providing 
64.31 	clinical services and their contact information, and includes an individual crisis prevention 
64.32 	and management plan developed with the individual.
64.33 	(c) License holders seeking certification under this subdivision must request this 
64.34 	certification on forms provided by the commissioner and must submit the request to the 
64.35 	county licensing agency in which the home is located. The county licensing agency must 
65.1 	forward the request to the commissioner with a county recommendation regarding whether 
65.2 	the commissioner should issue the certification.
65.3 	(d) Ongoing compliance with the certification requirements under paragraph (b) 
65.4 	shall be reviewed by the county licensing agency at each licensing review. When a county 
65.5 	licensing agency determines that the requirements of paragraph (b) are not met, the county 
65.6 	shall inform the commissioner, and the commissioner will remove the certification.
65.7 	(e) A denial of the certification or the removal of the certification based on a 
65.8 	determination that the requirements under paragraph (b) have not been met by the adult 
65.9 	foster care license holder are not subject to appeal. A license holder that has been denied a 
65.10 	certification or that has had a certification removed may again request certification when 
65.11 	the license holder is in compliance with the requirements of paragraph (b).

65.12 	Sec. 5. Minnesota Statutes 2011 Supplement, section 245A.03, subdivision 7, is 
65.13 	amended to read:
65.14 		Subd. 7.Licensing moratorium. (a) The commissioner shall not issue an 
65.15 	initial license for child foster care licensed under Minnesota Rules, parts 2960.3000 to 
65.16 	2960.3340, or adult foster care licensed under Minnesota Rules, parts 9555.5105 to 
65.17 	9555.6265, under this chapter for a physical location that will not be the primary residence 
65.18 	of the license holder for the entire period of licensure. If a license is issued during this 
65.19 	moratorium, and the license holder changes the license holder's primary residence away 
65.20 	from the physical location of the foster care license, the commissioner shall revoke the 
65.21 	license according to section 245A.07. Exceptions to the moratorium include:
65.22 	(1) foster care settings that are required to be registered under chapter 144D;
65.23 	(2) foster care licenses replacing foster care licenses in existence on May 15, 2009, 
65.24 	and determined to be needed by the commissioner under paragraph (b);
65.25 	(3) new foster care licenses determined to be needed by the commissioner under 
65.26 	paragraph (b) for the closure of a nursing facility, ICF/MR, or regional treatment center, or 
65.27 	restructuring of state-operated services that limits the capacity of state-operated facilities;
65.28 	(4) new foster care licenses determined to be needed by the commissioner under 
65.29 	paragraph (b) for persons requiring hospital level care; or
65.30 	(5) new foster care licenses determined to be needed by the commissioner for the 
65.31 	transition of people from personal care assistance to the home and community-based 
65.32 	services.
65.33 	(b) The commissioner shall determine the need for newly licensed foster care homes 
65.34 	as defined under this subdivision using the resource need determination process described 
65.35 	in paragraph (f). As part of the determination, the commissioner shall consider the 
66.1 	availability of foster care capacity in the area in which the licensee seeks to operate, and 
66.2 	the recommendation of the local county board. The determination by the commissioner 
66.3 	must be final. A determination of need is not required for a change in ownership at 
66.4 	the same address and other data and information, including the report on the status of 
66.5 	long-term care services required under section 144A.351.
66.6 	(c) Residential settings that would otherwise be subject to the moratorium established 
66.7 	in paragraph (a), that are in the process of receiving an adult or child foster care license as 
66.8 	of July 1, 2009, shall be allowed to continue to complete the process of receiving an adult 
66.9 	or child foster care license. For this paragraph, all of the following conditions must be met 
66.10 	to be considered in the process of receiving an adult or child foster care license:
66.11 	(1) participants have made decisions to move into the residential setting, including 
66.12 	documentation in each participant's care plan;
66.13 	(2) the provider has purchased housing or has made a financial investment in the 
66.14 	property;
66.15 	(3) the lead agency has approved the plans, including costs for the residential setting 
66.16 	for each individual;
66.17 	(4) the completion of the licensing process, including all necessary inspections, is 
66.18 	the only remaining component prior to being able to provide services; and
66.19 	(5) the needs of the individuals cannot be met within the existing capacity in that 
66.20 	county.
66.21 	To qualify for the process under this paragraph, the lead agency must submit 
66.22 	documentation to the commissioner by August 1, 2009, that all of the above criteria are 
66.23 	met.
66.24 	(d) The commissioner shall study the effects of the license moratorium under this 
66.25 	subdivision and shall report back to the legislature by January 15, 2011. This study shall 
66.26 	include, but is not limited to the following:
66.27 	(1) the overall capacity and utilization of foster care beds where the physical location 
66.28 	is not the primary residence of the license holder prior to and after implementation 
66.29 	of the moratorium;
66.30 	(2) the overall capacity and utilization of foster care beds where the physical 
66.31 	location is the primary residence of the license holder prior to and after implementation 
66.32 	of the moratorium; and
66.33 	(3) the number of licensed and occupied ICF/MR beds prior to and after 
66.34 	implementation of the moratorium.
66.35 	(e) When a foster care recipient moves out of a foster home that is not the 
66.36 	primary residence of the license holder according to section 256B.092, subdivision 1e, 
67.1 	paragraph (d), or256B.49, subdivision 15, paragraph (f), the county shall immediately 
67.2 	inform the Department of Human Services Licensing Division, and. The department 
67.3 	shall immediately decrease the licensed capacity for the home. If the voluntary changes 
67.4 	described in paragraph (f) are not sufficient to meet the savings required by 2011 
67.5 	reductions in licensed bed capacity and maintain statewide long-term care residential 
67.6 	services capacity within budgetary limits, the commissioner shall delicense ... beds 
67.7 	by June 30, 2013, using the needs determination process. Under this paragraph, the 
67.8 	commissioner has the authority to reduce unused licensed capacity of a current foster care 
67.9 	program to accomplish the consolidation or closure of settings. A decreased licensed 
67.10 	capacity according to this paragraph is not subject to appeal under this chapter.
67.11 	(f) A resource need determination process, managed at the state level, using the 
67.12 	available reports required by section 144A.351, and other data and information shall be 
67.13 	used to determine where the reduced capacity required under Laws 2011, First Special 
67.14 	Session chapter 9, article 7, sections 1 and 40 will occur. The commissioner shall consult 
67.15 	with the stakeholders described in section 144A.351, and employ a variety of methods to 
67.16 	improve the state's capacity to meet long-term care service needs within budgetary limits, 
67.17 	including seeking proposals from service providers or lead agencies to change service type, 
67.18 	capacity, or location to improve services, increase the independence of residents, allow for 
67.19 	payment to hold a person's bed open from permanent reassignment up to 60 days while 
67.20 	the person tries living in a more independent setting, and better meet needs identified by 
67.21 	the long-term care services reports and statewide data and information. By February 1 of 
67.22 	each year, the commissioner shall provide information and data on the overall capacity of 
67.23 	licensed long-term care services, actions taken under this subdivision to manage statewide 
67.24 	long-term care services and supports resources, and any recommendations for change to 
67.25 	the legislative committees with jurisdiction over the health and human services budget.

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

67.27 	Sec. 6. Minnesota Statutes 2010, section 245A.11, subdivision 7, is amended to read:
67.28 		Subd. 7.Adult foster care; variance for alternate overnight supervision. (a) The 
67.29 	commissioner may grant a variance under section 245A.04, subdivision 9, to rule parts 
67.30 	requiring a caregiver to be present in an adult foster care home during normal sleeping 
67.31 	hours to allow for alternative methods of overnight supervision. The commissioner may 
67.32 	grant the variance if the local county licensing agency recommends the variance and the 
67.33 	county recommendation includes documentation verifying that:
68.1 	(1) the county has approved the license holder's plan for alternative methods of 
68.2 	providing overnight supervision and determined the plan protects the residents' health, 
68.3 	safety, and rights;
68.4 	(2) the license holder has obtained written and signed informed consent from 
68.5 	each resident or each resident's legal representative documenting the resident's or legal 
68.6 	representative's agreement with the alternative method of overnight supervision; and
68.7 	(3) the alternative method of providing overnight supervision, which may include 
68.8 	the use of technology, is specified for each resident in the resident's: (i) individualized 
68.9 	plan of care; (ii) individual service plan under section 256B.092, subdivision 1b, if 
68.10 	required; or (iii) individual resident placement agreement under Minnesota Rules, part 
68.11 	9555.5105, subpart 19, if required.
68.12 	(b) To be eligible for a variance under paragraph (a), the adult foster care license 
68.13 	holder must not have had a licensing action conditional license issued under section 
68.14 	245A.06 or any other licensing sanction issued under section245A.07 during the prior 24 
68.15 	months based on failure to provide adequate supervision, health care services, or resident 
68.16 	safety in the adult foster care home.
68.17 	(c) A license holder requesting a variance under this subdivision to utilize 
68.18 	technology as a component of a plan for alternative overnight supervision may request 
68.19 	the commissioner's review in the absence of a county recommendation. Upon receipt of 
68.20 	such a request from a license holder, the commissioner shall review the variance request 
68.21 	with the county.

68.22 	Sec. 7. Minnesota Statutes 2010, section 245B.07, subdivision 1, is amended to read:
68.23 		Subdivision 1.Consumer data file. The license holder must maintain the following 
68.24 	information for each consumer:
68.25 	(1) identifying information that includes date of birth, medications, legal 
68.26 	representative, history, medical, and other individual-specific information, and names and 
68.27 	telephone numbers of contacts;
68.28 	(2) consumer health information, including individual medication administration 
68.29 	and monitoring information;
68.30 	(3) the consumer's individual service plan. When a consumer's case manager does 
68.31 	not provide a current individual service plan, the license holder shall make a written 
68.32 	request to the case manager to provide a copy of the individual service plan and inform 
68.33 	the consumer or the consumer's legal representative of the right to an individual service 
68.34 	plan and the right to appeal under section 256.045. In the event the case manager fails 
68.35 	to provide an individual service plan after a written request from the license holder, the 
69.1 	license holder shall not be sanctioned or penalized financially for not having a current 
69.2 	individual service plan in the consumer's data file;
69.3 	(4) copies of assessments, analyses, summaries, and recommendations;
69.4 	(5) progress review reports;
69.5 	(6) incidents involving the consumer;
69.6 	(7) reports required under section 245B.05, subdivision 7;
69.7 	(8) discharge summary, when applicable;
69.8 	(9) record of other license holders serving the consumer that includes a contact 
69.9 	person and telephone numbers, services being provided, services that require coordination 
69.10 	between two license holders, and name of staff responsible for coordination;
69.11 	(10) information about verbal aggression directed at the consumer by another 
69.12 	consumer; and
69.13 	(11) information about self-abuse.

69.14 	Sec. 8. Minnesota Statutes 2010, section 245C.04, subdivision 6, is amended to read:
69.15 		Subd. 6.Unlicensed home and community-based waiver providers of service to 
69.16 	seniors and individuals with disabilities. (a) Providers required to initiate background 
69.17 	studies under section 256B.4912 must initiate a study before the individual begins in a 
69.18 	position allowing direct contact with persons served by the provider.
69.19 	(b) The commissioner shall conduct Except as provided in paragraph (c), the 
69.20 	providers must initiate a background study annually of an individual required to be studied 
69.21 	under section 245C.03, subdivision 6.
69.22 	(c) After an initial background study under this subdivision is initiated on an 
69.23 	individual by a provider of both services licensed by the commissioner and the unlicensed 
69.24 	services under this subdivision, a repeat annual background study is not required if:
69.25 	(1) the provider maintains compliance with the requirements of section 245C.07, 
69.26 	paragraph (a), regarding one individual with one address and telephone number as the 
69.27 	person to receive sensitive background study information for the multiple programs that 
69.28 	depend on the same background study, and that the individual who is designated to receive 
69.29 	the sensitive background information is capable of determining, upon the request of the 
69.30 	commissioner, whether a background study subject is providing direct contact services 
69.31 	in one or more of the provider's programs or services and, if so, at which location or 
69.32 	locations; and
69.33 	(2) the individual who is the subject of the background study provides direct 
69.34 	contact services under the provider's licensed program for at least 40 hours per year so 
69.35 	the individual will be recognized by a probation officer or corrections agent to prompt 
70.1 	a report to the commissioner regarding criminal convictions as required under section 
70.2 	245C.05, subdivision 7.

70.3 	Sec. 9. Minnesota Statutes 2010, section 245C.05, subdivision 7, is amended to read:
70.4 		Subd. 7.Probation officer and corrections agent. (a) A probation officer or 
70.5 	corrections agent shall notify the commissioner of an individual's conviction if the 
70.6 	individual is:
70.7 	(1) has been affiliated with a program or facility regulated by the Department of 
70.8 	Human Services or Department of Health, a facility serving children or youth licensed by 
70.9 	the Department of Corrections, or any type of home care agency or provider of personal 
70.10 	care assistance services within the preceding year; and
70.11 	(2) has been convicted of a crime constituting a disqualification under section 
70.12 	245C.14.
70.13 	(b) For the purpose of this subdivision, "conviction" has the meaning given it 
70.14 	in section 609.02, subdivision 5.
70.15 	(c) The commissioner, in consultation with the commissioner of corrections, shall 
70.16 	develop forms and information necessary to implement this subdivision and shall provide 
70.17 	the forms and information to the commissioner of corrections for distribution to local 
70.18 	probation officers and corrections agents.
70.19 	(d) The commissioner shall inform individuals subject to a background study that 
70.20 	criminal convictions for disqualifying crimes will be reported to the commissioner by the 
70.21 	corrections system.
70.22 	(e) A probation officer, corrections agent, or corrections agency is not civilly or 
70.23 	criminally liable for disclosing or failing to disclose the information required by this 
70.24 	subdivision.
70.25 	(f) Upon receipt of disqualifying information, the commissioner shall provide the 
70.26 	notice required under section 245C.17, as appropriate, to agencies on record as having 
70.27 	initiated a background study or making a request for documentation of the background 
70.28 	study status of the individual.
70.29 	(g) This subdivision does not apply to family child care programs.

70.30 	Sec. 10. Minnesota Statutes 2010, section 252.27, subdivision 2a, is amended to read:
70.31 		Subd. 2a.Contribution amount. (a) The natural or adoptive parents of a minor 
70.32 	child, including a child determined eligible for medical assistance without consideration of 
70.33 	parental income, must contribute to the cost of services used by making monthly payments 
70.34 	on a sliding scale based on income, unless the child is married or has been married, 
71.1 	parental rights have been terminated, or the child's adoption is subsidized according to 
71.2 	section 259.67 or through title IV-E of the Social Security Act. The parental contribution 
71.3 	is a partial or full payment for medical services provided for diagnostic, therapeutic, 
71.4 	curing, treating, mitigating, rehabilitation, maintenance, and personal care services as 
71.5 	defined in United States Code, title 26, section 213, needed by the child with a chronic 
71.6 	illness or disability.
71.7 	(b) For households with adjusted gross income equal to or greater than 100 percent 
71.8 	of federal poverty guidelines, the parental contribution shall be computed by applying the 
71.9 	following schedule of rates to the adjusted gross income of the natural or adoptive parents:
71.10 	(1) if the adjusted gross income is equal to or greater than 100 percent of federal 
71.11 	poverty guidelines and less than 175 percent of federal poverty guidelines, the parental 
71.12 	contribution is $4 per month;
71.13 	(2) if the adjusted gross income is equal to or greater than 175 percent of federal 
71.14 	poverty guidelines and less than or equal to 545 525 percent of federal poverty guidelines, 
71.15 	the parental contribution shall be determined using a sliding fee scale established by the 
71.16 	commissioner of human services which begins at one percent of adjusted gross income at 
71.17 	175 percent of federal poverty guidelines and increases to 7.5 eight percent of adjusted 
71.18 	gross income for those with adjusted gross income up to 545 525 percent of federal 
71.19 	poverty guidelines;
71.20 	(3) if the adjusted gross income is greater than 545 525 percent of federal 
71.21 	poverty guidelines and less than 675 percent of federal poverty guidelines, the parental 
71.22 	contribution shall be 7.5 9.5 percent of adjusted gross income;
71.23 	(4) if the adjusted gross income is equal to or greater than 675 percent of federal 
71.24 	poverty guidelines and less than 975 900 percent of federal poverty guidelines, the parental 
71.25 	contribution shall be determined using a sliding fee scale established by the commissioner 
71.26 	of human services which begins at 7.5 9.5 percent of adjusted gross income at 675 percent 
71.27 	of federal poverty guidelines and increases to ten 12 percent of adjusted gross income for 
71.28 	those with adjusted gross income up to 975 900 percent of federal poverty guidelines; and
71.29 	(5) if the adjusted gross income is equal to or greater than 975 900 percent of 
71.30 	federal poverty guidelines, the parental contribution shall be 12.5 13.5 percent of adjusted 
71.31 	gross income.
71.32 	If the child lives with the parent, the annual adjusted gross income is reduced by 
71.33 	$2,400 prior to calculating the parental contribution. If the child resides in an institution 
71.34 	specified in section 256B.35, the parent is responsible for the personal needs allowance 
71.35 	specified under that section in addition to the parental contribution determined under this 
72.1 	section. The parental contribution is reduced by any amount required to be paid directly to 
72.2 	the child pursuant to a court order, but only if actually paid.
72.3 	(c) The household size to be used in determining the amount of contribution under 
72.4 	paragraph (b) includes natural and adoptive parents and their dependents, including the 
72.5 	child receiving services. Adjustments in the contribution amount due to annual changes 
72.6 	in the federal poverty guidelines shall be implemented on the first day of July following 
72.7 	publication of the changes.
72.8 	(d) For purposes of paragraph (b), "income" means the adjusted gross income of the 
72.9 	natural or adoptive parents determined according to the previous year's federal tax form, 
72.10 	except, effective retroactive to July 1, 2003, taxable capital gains to the extent the funds 
72.11 	have been used to purchase a home shall not be counted as income.
72.12 	(e) The contribution shall be explained in writing to the parents at the time eligibility 
72.13 	for services is being determined. The contribution shall be made on a monthly basis 
72.14 	effective with the first month in which the child receives services. Annually upon 
72.15 	redetermination or at termination of eligibility, if the contribution exceeded the cost of 
72.16 	services provided, the local agency or the state shall reimburse that excess amount to 
72.17 	the parents, either by direct reimbursement if the parent is no longer required to pay a 
72.18 	contribution, or by a reduction in or waiver of parental fees until the excess amount is 
72.19 	exhausted. All reimbursements must include a notice that the amount reimbursed may be 
72.20 	taxable income if the parent paid for the parent's fees through an employer's health care 
72.21 	flexible spending account under the Internal Revenue Code, section 125, and that the 
72.22 	parent is responsible for paying the taxes owed on the amount reimbursed.
72.23 	(f) The monthly contribution amount must be reviewed at least every 12 months; 
72.24 	when there is a change in household size; and when there is a loss of or gain in income 
72.25 	from one month to another in excess of ten percent. The local agency shall mail a written 
72.26 	notice 30 days in advance of the effective date of a change in the contribution amount. 
72.27 	A decrease in the contribution amount is effective in the month that the parent verifies a 
72.28 	reduction in income or change in household size.
72.29 	(g) Parents of a minor child who do not live with each other shall each pay the 
72.30 	contribution required under paragraph (a). An amount equal to the annual court-ordered 
72.31 	child support payment actually paid on behalf of the child receiving services shall be 
72.32 	deducted from the adjusted gross income of the parent making the payment prior to 
72.33 	calculating the parental contribution under paragraph (b).
72.34 	(h) The contribution under paragraph (b) shall be increased by an additional five 
72.35 	percent if the local agency determines that insurance coverage is available but not 
72.36 	obtained for the child. For purposes of this section, "available" means the insurance is a 
73.1 	benefit of employment for a family member at an annual cost of no more than five percent 
73.2 	of the family's annual income. For purposes of this section, "insurance" means health 
73.3 	and accident insurance coverage, enrollment in a nonprofit health service plan, health 
73.4 	maintenance organization, self-insured plan, or preferred provider organization.
73.5 	Parents who have more than one child receiving services shall not be required 
73.6 	to pay more than the amount for the child with the highest expenditures. There shall 
73.7 	be no resource contribution from the parents. The parent shall not be required to pay 
73.8 	a contribution in excess of the cost of the services provided to the child, not counting 
73.9 	payments made to school districts for education-related services. Notice of an increase in 
73.10 	fee payment must be given at least 30 days before the increased fee is due.
73.11 	(i) The contribution under paragraph (b) shall be reduced by $300 per fiscal year if, 
73.12 	in the 12 months prior to July 1:
73.13 	(1) the parent applied for insurance for the child;
73.14 	(2) the insurer denied insurance;
73.15 	(3) the parents submitted a complaint or appeal, in writing to the insurer, submitted 
73.16 	a complaint or appeal, in writing, to the commissioner of health or the commissioner of 
73.17 	commerce, or litigated the complaint or appeal; and
73.18 	(4) as a result of the dispute, the insurer reversed its decision and granted insurance.
73.19 	For purposes of this section, "insurance" has the meaning given in paragraph (h).
73.20 	A parent who has requested a reduction in the contribution amount under this 
73.21 	paragraph shall submit proof in the form and manner prescribed by the commissioner or 
73.22 	county agency, including, but not limited to, the insurer's denial of insurance, the written 
73.23 	letter or complaint of the parents, court documents, and the written response of the insurer 
73.24 	approving insurance. The determinations of the commissioner or county agency under this 
73.25 	paragraph are not rules subject to chapter 14.
73.26 	(j) Notwithstanding paragraph (b), for the period from July 1, 2010, to June 30, 
73.27 	2013, the parental contribution shall be computed by applying the following contribution 
73.28 	schedule to the adjusted gross income of the natural or adoptive parents:
73.29 	(1) if the adjusted gross income is equal to or greater than 100 percent of federal 
73.30 	poverty guidelines and less than 175 percent of federal poverty guidelines, the parental 
73.31 	contribution is $4 per month;
73.32 	(2) if the adjusted gross income is equal to or greater than 175 percent of federal 
73.33 	poverty guidelines and less than or equal to 525 percent of federal poverty guidelines, 
73.34 	the parental contribution shall be determined using a sliding fee scale established by the 
73.35 	commissioner of human services which begins at one percent of adjusted gross income 
73.36 	at 175 percent of federal poverty guidelines and increases to eight percent of adjusted 
74.1 	gross income for those with adjusted gross income up to 525 percent of federal poverty 
74.2 	guidelines;
74.3 	(3) if the adjusted gross income is greater than 525 percent of federal poverty 
74.4 	guidelines and less than 675 percent of federal poverty guidelines, the parental contribution 
74.5 	shall be 9.5 percent of adjusted gross income;
74.6 	(4) if the adjusted gross income is equal to or greater than 675 percent of federal 
74.7 	poverty guidelines and less than 900 percent of federal poverty guidelines, the parental 
74.8 	contribution shall be determined using a sliding fee scale established by the commissioner 
74.9 	of human services which begins at 9.5 percent of adjusted gross income at 675 percent of 
74.10 	federal poverty guidelines and increases to 12 percent of adjusted gross income for those 
74.11 	with adjusted gross income up to 900 percent of federal poverty guidelines; and
74.12 	(5) if the adjusted gross income is equal to or greater than 900 percent of federal 
74.13 	poverty guidelines, the parental contribution shall be 13.5 percent of adjusted gross 
74.14 	income. If the child lives with the parent, the annual adjusted gross income is reduced by 
74.15 	$2,400 prior to calculating the parental contribution. If the child resides in an institution 
74.16 	specified in section 256B.35, the parent is responsible for the personal needs allowance 
74.17 	specified under that section in addition to the parental contribution determined under this 
74.18 	section. The parental contribution is reduced by any amount required to be paid directly to 
74.19 	the child pursuant to a court order, but only if actually paid.

74.20 	Sec. 11. Minnesota Statutes 2011 Supplement, section 256.045, subdivision 3, is 
74.21 	amended to read:
74.22 		Subd. 3.State agency hearings. (a) State agency hearings are available for the 
74.23 	following:
74.24 	(1) any person applying for, receiving or having received public assistance, medical 
74.25 	care, or a program of social services granted by the state agency or a county agency or 
74.26 	the federal Food Stamp Act whose application for assistance is denied, not acted upon 
74.27 	with reasonable promptness, or whose assistance is suspended, reduced, terminated, or 
74.28 	claimed to have been incorrectly paid;
74.29 	(2) any patient or relative aggrieved by an order of the commissioner under section 
74.30 	252.27;
74.31 	(3) a party aggrieved by a ruling of a prepaid health plan;
74.32 	(4) except as provided under chapter 245C, any individual or facility determined by a 
74.33 	lead investigative agency to have maltreated a vulnerable adult under section 626.557 after 
74.34 	they have exercised their right to administrative reconsideration under section 626.557;
75.1 	(5) any person whose claim for foster care payment according to a placement of the 
75.2 	child resulting from a child protection assessment under section 626.556 is denied or not 
75.3 	acted upon with reasonable promptness, regardless of funding source;
75.4 	(6) any person to whom a right of appeal according to this section is given by other 
75.5 	provision of law;
75.6 	(7) an applicant aggrieved by an adverse decision to an application for a hardship 
75.7 	waiver under section 256B.15;
75.8 	(8) an applicant aggrieved by an adverse decision to an application or redetermination 
75.9 	for a Medicare Part D prescription drug subsidy under section 256B.04, subdivision 4a;
75.10 	(9) except as provided under chapter 245A, an individual or facility determined 
75.11 	to have maltreated a minor under section 626.556, after the individual or facility has 
75.12 	exercised the right to administrative reconsideration under section 626.556;
75.13 	(10) except as provided under chapter 245C, an individual disqualified under 
75.14 	sections 245C.14 and 245C.15, following a reconsideration decision issued under section 
75.15 	245C.23, on the basis of serious or recurring maltreatment; a preponderance of the 
75.16 	evidence that the individual has committed an act or acts that meet the definition of any of 
75.17 	the crimes listed in section 245C.15, subdivisions 1 to 4; or for failing to make reports 
75.18 	required under section 626.556, subdivision 3, or 626.557, subdivision 3. Hearings 
75.19 	regarding a maltreatment determination under clause (4) or (9) and a disqualification under 
75.20 	this clause in which the basis for a disqualification is serious or recurring maltreatment, 
75.21 	shall be consolidated into a single fair hearing. In such cases, the scope of review by 
75.22 	the human services referee shall include both the maltreatment determination and the 
75.23 	disqualification. The failure to exercise the right to an administrative reconsideration shall 
75.24 	not be a bar to a hearing under this section if federal law provides an individual the right to 
75.25 	a hearing to dispute a finding of maltreatment. Individuals and organizations specified in 
75.26 	this section may contest the specified action, decision, or final disposition before the state 
75.27 	agency by submitting a written request for a hearing to the state agency within 30 days 
75.28 	after receiving written notice of the action, decision, or final disposition, or within 90 days 
75.29 	of such written notice if the applicant, recipient, patient, or relative shows good cause why 
75.30 	the request was not submitted within the 30-day time limit; or
75.31 	(11) any person with an outstanding debt resulting from receipt of public assistance, 
75.32 	medical care, or the federal Food Stamp Act who is contesting a setoff claim by the 
75.33 	Department of Human Services or a county agency. The scope of the appeal is the validity 
75.34 	of the claimant agency's intention to request a setoff of a refund under chapter 270A 
75.35 	against the debt.
76.1 	(b) The hearing for an individual or facility under paragraph (a), clause (4), (9), or 
76.2 	(10), is the only administrative appeal to the final agency determination specifically, 
76.3 	including a challenge to the accuracy and completeness of data under section 13.04. 
76.4 	Hearings requested under paragraph (a), clause (4), apply only to incidents of maltreatment 
76.5 	that occur on or after October 1, 1995. Hearings requested by nursing assistants in nursing 
76.6 	homes alleged to have maltreated a resident prior to October 1, 1995, shall be held as a 
76.7 	contested case proceeding under the provisions of chapter 14. Hearings requested under 
76.8 	paragraph (a), clause (9), apply only to incidents of maltreatment that occur on or after 
76.9 	July 1, 1997. A hearing for an individual or facility under paragraph (a), clause (9), is 
76.10 	only available when there is no juvenile court or adult criminal action pending. If such 
76.11 	action is filed in either court while an administrative review is pending, the administrative 
76.12 	review must be suspended until the judicial actions are completed. If the juvenile court 
76.13 	action or criminal charge is dismissed or the criminal action overturned, the matter may be 
76.14 	considered in an administrative hearing.
76.15 	(c) For purposes of this section, bargaining unit grievance procedures are not an 
76.16 	administrative appeal.
76.17 	(d) The scope of hearings involving claims to foster care payments under paragraph 
76.18 	(a), clause (5), shall be limited to the issue of whether the county is legally responsible 
76.19 	for a child's placement under court order or voluntary placement agreement and, if so, 
76.20 	the correct amount of foster care payment to be made on the child's behalf and shall not 
76.21 	include review of the propriety of the county's child protection determination or child 
76.22 	placement decision.
76.23 	(e) The scope of hearings involving appeals related to the reduction, suspension, 
76.24 	denial, or termination of personal care assistance services under section 256B.0659, or 
76.25 	home and community-based services waivers under sections 256B.092 and 256B.49, shall 
76.26 	be limited to the specific issues under written appeal.
76.27 	(f) A vendor of medical care as defined in section 256B.02, subdivision 7, or a 
76.28 	vendor under contract with a county agency to provide social services is not a party and 
76.29 	may not request a hearing under this section, except if assisting a recipient as provided in 
76.30 	subdivision 4.
76.31 	(f) (g) An applicant or recipient is not entitled to receive social services beyond the 
76.32 	services prescribed under chapter 256M or other social services the person is eligible 
76.33 	for under state law.
76.34 	(g) (h) The commissioner may summarily affirm the county or state agency's 
76.35 	proposed action without a hearing when the sole issue is an automatic change due to 
76.36 	a change in state or federal law.

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

77.3 	Sec. 12. Minnesota Statutes 2010, section 256B.056, subdivision 1a, is amended to 
77.4 	read:
77.5 		Subd. 1a.Income and assets generally. Unless specifically required by state 
77.6 	law or rule or federal law or regulation, the methodologies used in counting income 
77.7 	and assets to determine eligibility for medical assistance for persons whose eligibility 
77.8 	category is based on blindness, disability, or age of 65 or more years, the methodologies 
77.9 	for the supplemental security income program shall be used, except as provided under 
77.10 	subdivision 3, paragraph (a), clause (6). Increases in benefits under title II of the Social 
77.11 	Security Act shall not be counted as income for purposes of this subdivision until July 1 of 
77.12 	each year. Effective upon federal approval, for children eligible under section 256B.055, 
77.13 	subdivision 12, or for home and community-based waiver services whose eligibility 
77.14 	for medical assistance is determined without regard to parental income, child support 
77.15 	payments, including any payments made by an obligor in satisfaction of or in addition 
77.16 	to a temporary or permanent order for child support, and Social Security payments are 
77.17 	not counted as income. For families and children, which includes all other eligibility 
77.18 	categories, the methodologies under the state's AFDC plan in effect as of July 16, 1996, as 
77.19 	required by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 
77.20 	(PRWORA), Public Law 104-193, shall be used, except that effective October 1, 2003, the 
77.21 	earned income disregards and deductions are limited to those in subdivision 1c. For these 
77.22 	purposes, a "methodology" does not include an asset or income standard, or accounting 
77.23 	method, or method of determining effective dates.

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

77.25 	Sec. 13. Minnesota Statutes 2011 Supplement, section 256B.056, subdivision 3, 
77.26 	is amended to read:
77.27 		Subd. 3.Asset limitations for individuals and families. (a) To be eligible for 
77.28 	medical assistance, a person must not individually own more than $3,000 in assets, or if a 
77.29 	member of a household with two family members, husband and wife, or parent and child, 
77.30 	the household must not own more than $6,000 in assets, plus $200 for each additional 
77.31 	legal dependent. In addition to these maximum amounts, an eligible individual or family 
77.32 	may accrue interest on these amounts, but they must be reduced to the maximum at the 
77.33 	time of an eligibility redetermination. The accumulation of the clothing and personal 
77.34 	needs allowance according to section 256B.35 must also be reduced to the maximum at 
78.1 	the time of the eligibility redetermination. The value of assets that are not considered in 
78.2 	determining eligibility for medical assistance is the value of those assets excluded under 
78.3 	the supplemental security income program for aged, blind, and disabled persons, with 
78.4 	the following exceptions:
78.5 	(1) household goods and personal effects are not considered;
78.6 	(2) capital and operating assets of a trade or business that the local agency determines 
78.7 	are necessary to the person's ability to earn an income are not considered;
78.8 	(3) motor vehicles are excluded to the same extent excluded by the supplemental 
78.9 	security income program;
78.10 	(4) assets designated as burial expenses are excluded to the same extent excluded by 
78.11 	the supplemental security income program. Burial expenses funded by annuity contracts 
78.12 	or life insurance policies must irrevocably designate the individual's estate as contingent 
78.13 	beneficiary to the extent proceeds are not used for payment of selected burial expenses; and
78.14 	(5) for a person who no longer qualifies as an employed person with a disability due 
78.15 	to loss of earnings, assets allowed while eligible for medical assistance under section 
78.16 	256B.057, subdivision 9, are not considered for 12 months, beginning with the first month 
78.17 	of ineligibility as an employed person with a disability, to the extent that the person's total 
78.18 	assets remain within the allowed limits of section 256B.057, subdivision 9, paragraph 
78.19 	(d).; and
78.20 	(6) when a person enrolled in medical assistance under section 256B.057, subdivision 
78.21 	9, is age 65 or older and has been enrolled during each of the 24 consecutive months 
78.22 	before the person's 65th birthday, the assets owned by the person and the person's spouse 
78.23 	must be disregarded, up to the limits of section 256B.057, subdivision 9, paragraph (d), 
78.24 	when determining eligibility for medical assistance under section 256B.055, subdivision 
78.25 	7. The income of a spouse of a person enrolled in medical assistance under section 
78.26 	256B.057, subdivision 9, during each of the 24 consecutive months before the person's 
78.27 	65th birthday must be disregarded when determining eligibility for medical assistance 
78.28 	under section 256B.055, subdivision 7. Persons eligible under this clause are not subject to 
78.29 	the provisions in section 256B.059. A person whose 65th birthday occurs in 2012 or 2013 
78.30 	is required to have qualified for medical assistance under section 256B.057, subdivision 9, 
78.31 	prior to age 65 for at least 20 months in the 24 months prior to reaching age 65.
78.32 	(b) No asset limit shall apply to persons eligible under section 256B.055, subdivision 
78.33 	15.

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

79.1 	Sec. 14. Minnesota Statutes 2011 Supplement, section 256B.057, subdivision 9, 
79.2 	is amended to read:
79.3 		Subd. 9.Employed persons with disabilities. (a) Medical assistance may be paid 
79.4 	for a person who is employed and who:
79.5 	(1) but for excess earnings or assets, meets the definition of disabled under the 
79.6 	Supplemental Security Income program;
79.7 	(2) is at least 16 but less than 65 years of age;
79.8 	(3) meets the asset limits in paragraph (d); and
79.9 	(4) (3) pays a premium and other obligations under paragraph (e).
79.10 	(b) For purposes of eligibility, there is a $65 earned income disregard. To be eligible 
79.11 	for medical assistance under this subdivision, a person must have more than $65 of earned 
79.12 	income. Earned income must have Medicare, Social Security, and applicable state and 
79.13 	federal taxes withheld. The person must document earned income tax withholding. Any 
79.14 	spousal income or assets shall be disregarded for purposes of eligibility and premium 
79.15 	determinations.
79.16 	(c) After the month of enrollment, a person enrolled in medical assistance under 
79.17 	this subdivision who:
79.18 	(1) is temporarily unable to work and without receipt of earned income due to a 
79.19 	medical condition, as verified by a physician; or
79.20 	(2) loses employment for reasons not attributable to the enrollee, and is without 
79.21 	receipt of earned income may retain eligibility for up to four consecutive months after the 
79.22 	month of job loss. To receive a four-month extension, enrollees must verify the medical 
79.23 	condition or provide notification of job loss. All other eligibility requirements must be met 
79.24 	and the enrollee must pay all calculated premium costs for continued eligibility.
79.25 	(d) For purposes of determining eligibility under this subdivision, a person's assets 
79.26 	must not exceed $20,000, excluding:
79.27 	(1) all assets excluded under section 256B.056;
79.28 	(2) retirement accounts, including individual accounts, 401(k) plans, 403(b) plans, 
79.29 	Keogh plans, and pension plans;
79.30 	(3) medical expense accounts set up through the person's employer; and
79.31 	(4) spousal assets, including spouse's share of jointly held assets.
79.32 	(e) All enrollees must pay a premium to be eligible for medical assistance under this 
79.33 	subdivision, except as provided under section 256.01, subdivision 18b.
79.34 	(1) An enrollee must pay the greater of a $65 premium or the premium calculated 
79.35 	based on the person's gross earned and unearned income and the applicable family size 
79.36 	using a sliding fee scale established by the commissioner, which begins at one percent of 
80.1 	income at 100 percent of the federal poverty guidelines and increases to 7.5 percent of 
80.2 	income for those with incomes at or above 300 percent of the federal poverty guidelines.
80.3 	(2) Annual adjustments in the premium schedule based upon changes in the federal 
80.4 	poverty guidelines shall be effective for premiums due in July of each year.
80.5 	(3) All enrollees who receive unearned income must pay five percent of unearned 
80.6 	income in addition to the premium amount, except as provided under section 256.01, 
80.7 	subdivision 18b.
80.8 	(4) Increases in benefits under title II of the Social Security Act shall not be counted 
80.9 	as income for purposes of this subdivision until July 1 of each year.
80.10 	(f) A person's eligibility and premium shall be determined by the local county 
80.11 	agency. Premiums must be paid to the commissioner. All premiums are dedicated to 
80.12 	the commissioner.
80.13 	(g) Any required premium shall be determined at application and redetermined at 
80.14 	the enrollee's six-month income review or when a change in income or household size is 
80.15 	reported. Enrollees must report any change in income or household size within ten days 
80.16 	of when the change occurs. A decreased premium resulting from a reported change in 
80.17 	income or household size shall be effective the first day of the next available billing month 
80.18 	after the change is reported. Except for changes occurring from annual cost-of-living 
80.19 	increases, a change resulting in an increased premium shall not affect the premium amount 
80.20 	until the next six-month review.
80.21 	(h) Premium payment is due upon notification from the commissioner of the 
80.22 	premium amount required. Premiums may be paid in installments at the discretion of 
80.23 	the commissioner.
80.24 	(i) Nonpayment of the premium shall result in denial or termination of medical 
80.25 	assistance unless the person demonstrates good cause for nonpayment. Good cause exists 
80.26 	if the requirements specified in Minnesota Rules, part 9506.0040, subpart 7, items B to 
80.27 	D, are met. Except when an installment agreement is accepted by the commissioner, 
80.28 	all persons disenrolled for nonpayment of a premium must pay any past due premiums 
80.29 	as well as current premiums due prior to being reenrolled. Nonpayment shall include 
80.30 	payment with a returned, refused, or dishonored instrument. The commissioner may 
80.31 	require a guaranteed form of payment as the only means to replace a returned, refused, 
80.32 	or dishonored instrument.
80.33 	(j) The commissioner shall notify enrollees annually beginning at least 24 months 
80.34 	before the person's 65th birthday of the medical assistance eligibility rules affecting 
80.35 	income, assets, and treatment of a spouse's income and assets that will be applied upon 
80.36 	reaching age 65.
81.1 	(k) For enrollees whose income does not exceed 200 percent of the federal poverty 
81.2 	guidelines and who are also enrolled in Medicare, the commissioner shall reimburse 
81.3 	the enrollee for Medicare part B premiums under section 256B.0625, subdivision 15, 
81.4 	paragraph (a).

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

81.6 	Sec. 15. Minnesota Statutes 2010, section 256B.0659, is amended by adding a 
81.7 	subdivision to read:
81.8 		Subd. 31.Appeals. (a) A recipient who is adversely affected by the reduction, 
81.9 	suspension, denial, or termination of services under this section may appeal the decision 
81.10 	according to section 256.045. The notice of the reduction, suspension, denial, or 
81.11 	termination of services from the lead agency to the applicant or recipient must be made 
81.12 	in plain language and must include a form for written appeal. The commissioner may 
81.13 	provide lead agencies with a model form for written appeal. The appeal must be in 
81.14 	writing and identify the specific issues the recipient would like to have considered in the 
81.15 	appeal hearing and a summary of the basis, with supporting professional documentation 
81.16 	if available, for contesting the decision.
81.17 	(b) If a recipient has a change in condition or new information after the date of 
81.18 	the assessment, temporary services may be authorized according to section 256B.0652, 
81.19 	subdivision 9, until a new assessment is completed.

81.20 	Sec. 16. Minnesota Statutes 2011 Supplement, section 256B.0911, subdivision 3a, 
81.21 	is amended to read:
81.22 		Subd. 3a.Assessment and support planning. (a) Persons requesting assessment, 
81.23 	services planning, or other assistance intended to support community-based living, 
81.24 	including persons who need assessment in order to determine waiver or alternative care 
81.25 	program eligibility, must be visited by a long-term care consultation team within 15 
81.26 	calendar days after the date on which an assessment was requested or recommended. After 
81.27 	January 1, 2011, these requirements also apply to personal care assistance services, private 
81.28 	duty nursing, and home health agency services, on timelines established in subdivision 5. 
81.29 	Face-to-face assessments must be conducted according to paragraphs (b) to (i).
81.30 	(b) The county may utilize a team of either the social worker or public health nurse, 
81.31 	or both. After January 1, 2011, lead agencies shall use certified assessors to conduct the 
81.32 	assessment in a face-to-face interview. The consultation team members must confer 
81.33 	regarding the most appropriate care for each individual screened or assessed.
82.1 	(c) The assessment must be comprehensive and include a person-centered 
82.2 	assessment of the health, psychological, functional, environmental, and social needs of 
82.3 	referred individuals and provide information necessary to develop a support plan that 
82.4 	meets the consumers needs, using an assessment form provided by the commissioner.
82.5 	(d) The assessment must be conducted in a face-to-face interview with the person 
82.6 	being assessed and the person's legal representative, as required by legally executed 
82.7 	documents, and other individuals as requested by the person, who can provide information 
82.8 	on the needs, strengths, and preferences of the person necessary to develop a support plan 
82.9 	that ensures the person's health and safety, but who is not a provider of service or has any 
82.10 	financial interest in the provision of services. For persons who are to be assessed for 
82.11 	elderly waiver customized living services under section 256B.0915, with the permission 
82.12 	of the person being assessed or the person's designated or legal representative, the client's 
82.13 	current or proposed provider of services may submit a copy of the provider's nursing 
82.14 	assessment or written report outlining their recommendations regarding the client's care 
82.15 	needs. The person conducting the assessment will notify the provider of the date by 
82.16 	which this information is to be submitted. This information shall be provided to the 
82.17 	person conducting the assessment and must be considered prior to the finalization of 
82.18 	the assessment.
82.19 	(e) The person, or the person's legal representative, must be provided with written 
82.20 	recommendations for community-based services, including consumer-directed options, 
82.21 	or institutional care that include documentation that the most cost-effective alternatives 
82.22 	available were offered to the individual, and alternatives to residential settings, including, 
82.23 	but not limited to, foster care settings that are not the primary residence of the license 
82.24 	holder. For purposes of this requirement, "cost-effective alternatives" means community 
82.25 	services and living arrangements that cost the same as or less than institutional care.
82.26 	(f) If the person chooses to use community-based services, the person or the person's 
82.27 	legal representative must be provided with a written community support plan, regardless 
82.28 	of whether the individual is eligible for Minnesota health care programs. A person may 
82.29 	request assistance in identifying community supports without participating in a complete 
82.30 	assessment. Upon a request for assistance identifying community support, the person must 
82.31 	be transferred or referred to the services available under sections 256.975, subdivision 7, 
82.32 	and 256.01, subdivision 24, for telephone assistance and follow up.
82.33 	(g) The person has the right to make the final decision between institutional 
82.34 	placement and community placement after the recommendations have been provided, 
82.35 	except as provided in subdivision 4a, paragraph (c).
83.1 	(h) The team must give the person receiving assessment or support planning, or 
83.2 	the person's legal representative, materials, and forms supplied by the commissioner 
83.3 	containing the following information:
83.4 	(1) the need for and purpose of preadmission screening if the person selects nursing 
83.5 	facility placement;
83.6 	(2) the role of the long-term care consultation assessment and support planning in 
83.7 	waiver and alternative care program eligibility determination;
83.8 	(3) information about Minnesota health care programs;
83.9 	(4) the person's freedom to accept or reject the recommendations of the team;
83.10 	(5) the person's right to confidentiality under the Minnesota Government Data 
83.11 	Practices Act, chapter 13;
83.12 	(6) the long-term care consultant's decision regarding the person's need for 
83.13 	institutional level of care as determined under criteria established in section 144.0724, 
83.14 	subdivision 11, or 256B.092; and
83.15 	(7) the person's right to appeal the decision regarding the need for nursing facility 
83.16 	level of care or the county's final decisions regarding public programs eligibility according 
83.17 	to section 256.045, subdivision 3.
83.18 	(i) Face-to-face assessment completed as part of eligibility determination for 
83.19 	the alternative care, elderly waiver, community alternatives for disabled individuals, 
83.20 	community alternative care, and traumatic brain injury waiver programs under sections 
83.21 	256B.0915, 256B.0917, and 256B.49 is valid to establish service eligibility for no more 
83.22 	than 60 calendar days after the date of assessment. The effective eligibility start date 
83.23 	for these programs can never be prior to the date of assessment. If an assessment was 
83.24 	completed more than 60 days before the effective waiver or alternative care program 
83.25 	eligibility start date, assessment and support plan information must be updated in a 
83.26 	face-to-face visit and documented in the department's Medicaid Management Information 
83.27 	System (MMIS). The effective date of program eligibility in this case cannot be prior to 
83.28 	the date the updated assessment is completed.

83.29 	Sec. 17. Minnesota Statutes 2011 Supplement, section 256B.0911, subdivision 3c, 
83.30 	is amended to read:
83.31 		Subd. 3c.Consultation for housing with services. (a) The purpose of long-term 
83.32 	care consultation for registered housing with services is to support persons with current or 
83.33 	anticipated long-term care needs in making informed choices among options that include 
83.34 	the most cost-effective and least restrictive settings. Prospective residents maintain the 
83.35 	right to choose housing with services or assisted living if that option is their preference.
84.1 	(b) Registered housing with services establishments shall inform all prospective 
84.2 	residents of the availability of long-term care consultation and the need to receive and 
84.3 	verify the consultation prior to signing a lease or contract. Long-term care consultation 
84.4 	for registered housing with services is provided as determined by the commissioner of 
84.5 	human services. The service is delivered under a partnership between lead agencies as 
84.6 	defined in subdivision 1a, paragraph (d), and the Area Agencies on Aging, and is a point 
84.7 	of entry to a combination of telephone-based long-term care options counseling provided 
84.8 	by Senior LinkAge Line and in-person long-term care consultation provided by lead 
84.9 	agencies. The point of entry service must be provided within five working days of the 
84.10 	request of the prospective resident as follows:
84.11 	(1) the consultation shall be performed in a manner that provides objective and 
84.12 	complete information;
84.13 	(2) the consultation must include a review of the prospective resident's reasons for 
84.14 	considering housing with services, the prospective resident's personal goals, a discussion 
84.15 	of the prospective resident's immediate and projected long-term care needs, and alternative 
84.16 	community services or housing with services settings that may meet the prospective 
84.17 	resident's needs;
84.18 	(3) the prospective resident shall be informed of the availability of a face-to-face 
84.19 	visit at no charge to the prospective resident to assist the prospective resident in assessment 
84.20 	and planning to meet the prospective resident's long-term care needs; and
84.21 	(4) verification of counseling shall be generated and provided to the prospective 
84.22 	resident by Senior LinkAge Line upon completion of the telephone-based counseling.
84.23 	(c) Housing with services establishments registered under chapter 144D shall:
84.24 	(1) inform all prospective residents of the availability of and contact information for 
84.25 	consultation services under this subdivision;
84.26 	(2) except for individuals seeking lease-only arrangements in subsidized housing 
84.27 	settings, receive a copy of the verification of counseling prior to executing a lease or 
84.28 	service contract with the prospective resident, and prior to executing a service contract 
84.29 	with individuals who have previously entered into lease-only arrangements; and
84.30 	(3) retain a copy of the verification of counseling as part of the resident's file.
84.31 	(d) Exemptions from the consultation requirement under paragraph (b) and 
84.32 	emergency admissions to registered housing with services establishments prior to 
84.33 	consultation under paragraph (b) are permitted according to policies established by the 
84.34 	commissioner.
84.35 	(e) Prospective residents who have used financial planning services and created a 
84.36 	long-term care plan in the 12 months prior to signing a lease or contract with a registered 
85.1 	housing with services or assisted living establishment are exempt from the long-term care 
85.2 	consultation requirements under this subdivision. Housing with services establishments 
85.3 	registered under chapter 144D are exempt from the requirements of paragraph (c), 
85.4 	clauses (2) and (3), for prospective residents who are exempt from the requirements 
85.5 	of this subdivision.

85.6 	Sec. 18. Minnesota Statutes 2011 Supplement, section 256B.0915, subdivision 3e, 
85.7 	is amended to read:
85.8 		Subd. 3e.Customized living service rate. (a) Payment for customized living 
85.9 	services shall be a monthly rate authorized by the lead agency within the parameters 
85.10 	established by the commissioner. The payment agreement must delineate the amount of 
85.11 	each component service included in the recipient's customized living service plan. The 
85.12 	lead agency, with input from the provider of customized living services, shall ensure that 
85.13 	there is a documented need within the parameters established by the commissioner for all 
85.14 	component customized living services authorized.
85.15 	(b) The payment rate must be based on the amount of component services to be 
85.16 	provided utilizing component rates established by the commissioner. Counties and tribes 
85.17 	shall use tools issued by the commissioner to develop and document customized living 
85.18 	service plans and rates.
85.19 	(c) Component service rates must not exceed payment rates for comparable elderly 
85.20 	waiver or medical assistance services and must reflect economies of scale. Customized 
85.21 	living services must not include rent or raw food costs.
85.22 	(d) With the exception of individuals described in subdivision 3a, paragraph (b), the 
85.23 	individualized monthly authorized payment for the customized living service plan shall 
85.24 	not exceed 50 percent of the greater of either the statewide or any of the geographic 
85.25 	groups' weighted average monthly nursing facility rate of the case mix resident class 
85.26 	to which the elderly waiver eligible client would be assigned under Minnesota Rules, 
85.27 	parts 9549.0050 to 9549.0059, less the maintenance needs allowance as described 
85.28 	in subdivision 1d, paragraph (a), until the July 1 of the state fiscal year in which the 
85.29 	resident assessment system as described in section 256B.438 for nursing home rate 
85.30 	determination is implemented. Effective on July 1 of the state fiscal year in which 
85.31 	the resident assessment system as described in section 256B.438 for nursing home 
85.32 	rate determination is implemented and July 1 of each subsequent state fiscal year, the 
85.33 	individualized monthly authorized payment for the services described in this clause shall 
85.34 	not exceed the limit which was in effect on June 30 of the previous state fiscal year 
86.1 	updated annually based on legislatively adopted changes to all service rate maximums for 
86.2 	home and community-based service providers.
86.3 	(e) Effective July 1, 2011, the individualized monthly payment for the customized 
86.4 	living service plan for individuals described in subdivision 3a, paragraph (b), must be the 
86.5 	monthly authorized payment limit for customized living for individuals classified as case 
86.6 	mix A, reduced by 25 percent. This rate limit must be applied to all new participants 
86.7 	enrolled in the program on or after July 1, 2011, who meet the criteria described in 
86.8 	subdivision 3a, paragraph (b). This monthly limit also applies to all other participants who 
86.9 	meet the criteria described in subdivision 3a, paragraph (b), at reassessment.
86.10 	(f) Customized living services are delivered by a provider licensed by the 
86.11 	Department of Health as a class A or class F home care provider and provided in a 
86.12 	building that is registered as a housing with services establishment under chapter 144D. 
86.13 	Licensed home care providers are subject to section 256B.0651, subdivision 14.
86.14 	(g) A provider may not bill or otherwise charge an elderly waiver participant or their 
86.15 	family for additional units of any allowable component service beyond those available 
86.16 	under the service rate limits described in paragraph (d), nor for additional units of any 
86.17 	allowable component service beyond those approved in the service plan by the lead agency.

86.18 	Sec. 19. Minnesota Statutes 2010, section 256B.0915, subdivision 3g, is amended to 
86.19 	read:
86.20 		Subd. 3g.Service rate limits; state assumption of costs. (a) To improve access 
86.21 	to community services and eliminate payment disparities between the alternative care 
86.22 	program and the elderly waiver, the commissioner shall establish statewide maximum 
86.23 	service rate limits and eliminate lead agency-specific service rate limits.
86.24 	(b) Effective July 1, 2001, for service rate limits, except those described or defined in 
86.25 	subdivisions 3d and 3e, the rate limit for each service shall be the greater of the alternative 
86.26 	care statewide maximum rate or the elderly waiver statewide maximum rate.
86.27 	(c) Lead agencies may negotiate individual service rates with vendors for actual 
86.28 	costs up to the statewide maximum service rate limit.
86.29 	(d) Notwithstanding the requirements of paragraphs (a) through (c), or the 
86.30 	requirements in subdivisions 3e and 3h, and as part of waiver reform proposals 
86.31 	developed under authority in section 256B.021, subdivision 4, paragraphs (f) and (g), 
86.32 	the commissioner may develop proposals for alternative or enhanced service payment 
86.33 	rate systems for purposes of ensuring reasonable and adequate access to home and 
86.34 	community-based services for elderly waiver participants throughout the state based 
86.35 	on criteria established to designate areas as critical access home and community-based 
87.1 	service areas.  These proposals, to be submitted to the legislature no later than February 
87.2 	15, 2013, must be based on an evaluation of statewide capacity and the determination of 
87.3 	critical access home and community-based services areas. Alternative or enhanced service 
87.4 	payment rate systems will be limited to providers delivering services to individuals 
87.5 	residing in communities, counties, or groups of counties designated as critical access 
87.6 	areas for home and community-based services. The commissioner shall consult with 
87.7 	stakeholders who authorize and provide elderly waiver services as well as with consumer 
87.8 	advocates and the ombudsman for long-term care.
87.9 	(1) Alternative or enhanced payment rate systems may be developed in designated 
87.10 	areas for elderly waiver services providers that may include:
87.11 	(i) licensed home care providers qualified to enroll in Minnesota health care 
87.12 	programs that are delivering services in housing with services establishments in critical 
87.13 	access areas of the state;
87.14 	(ii) providers as described in subdivision 3h, paragraph (g). Any calculation of 
87.15 	an enhanced or alternative service rate under this clause or clause (i), must be limited 
87.16 	to services only and cannot include rent, utilities, raw food, or nonallowable service 
87.17 	component costs or charges; and
87.18 	(iii) other nonresidential elderly waiver services.
87.19 	(2) In order to develop critical access criteria and alternative or enhanced payment 
87.20 	systems for critical access home and community-based services areas, the commissioner 
87.21 	shall utilize information available from existing sources whenever possible.
87.22 	(3)  Providers applying for alternative or enhanced rates in critical access areas may 
87.23 	be required to provide additional information as recommended by the commissioner 
87.24 	and approved by the legislature.

87.25 	Sec. 20. Minnesota Statutes 2011 Supplement, section 256B.0915, subdivision 3h, 
87.26 	is amended to read:
87.27 		Subd. 3h.Service rate limits; 24-hour customized living services. (a) The 
87.28 	payment rate for 24-hour customized living services is a monthly rate authorized by the 
87.29 	lead agency within the parameters established by the commissioner of human services. 
87.30 	The payment agreement must delineate the amount of each component service included 
87.31 	in each recipient's customized living service plan. The lead agency, with input from 
87.32 	the provider of customized living services, shall ensure that there is a documented need 
87.33 	within the parameters established by the commissioner for all component customized 
87.34 	living services authorized. The lead agency shall not authorize 24-hour customized living 
87.35 	services unless there is a documented need for 24-hour supervision.
88.1 	(b) For purposes of this section, "24-hour supervision" means that the recipient 
88.2 	requires assistance due to needs related to one or more of the following:
88.3 	(1) intermittent assistance with toileting, positioning, or transferring;
88.4 	(2) cognitive or behavioral issues;
88.5 	(3) a medical condition that requires clinical monitoring; or
88.6 	(4) for all new participants enrolled in the program on or after July 1, 2011, and 
88.7 	all other participants at their first reassessment after July 1, 2011, dependency in at 
88.8 	least three of the following activities of daily living as determined by assessment under 
88.9 	section 256B.0911: bathing; dressing; grooming; walking; or eating when the dependency 
88.10 	score in eating is three or greater; and needs medication management and at least 50 
88.11 	hours of service per month. The lead agency shall ensure that the frequency and mode 
88.12 	of supervision of the recipient and the qualifications of staff providing supervision are 
88.13 	described and meet the needs of the recipient.
88.14 	(c) The payment rate for 24-hour customized living services must be based on the 
88.15 	amount of component services to be provided utilizing component rates established by the 
88.16 	commissioner. Counties and tribes will use tools issued by the commissioner to develop 
88.17 	and document customized living plans and authorize rates.
88.18 	(d) Component service rates must not exceed payment rates for comparable elderly 
88.19 	waiver or medical assistance services and must reflect economies of scale.
88.20 	(e) The individually authorized 24-hour customized living payments, in combination 
88.21 	with the payment for other elderly waiver services, including case management, must not 
88.22 	exceed the recipient's community budget cap specified in subdivision 3a. Customized 
88.23 	living services must not include rent or raw food costs.
88.24 	(f) The individually authorized 24-hour customized living payment rates shall not 
88.25 	exceed the 95 percentile of statewide monthly authorizations for 24-hour customized 
88.26 	living services in effect and in the Medicaid management information systems on March 
88.27 	31, 2009, for each case mix resident class under Minnesota Rules, parts 9549.0050 
88.28 	to 9549.0059, to which elderly waiver service clients are assigned. When there are 
88.29 	fewer than 50 authorizations in effect in the case mix resident class, the commissioner 
88.30 	shall multiply the calculated service payment rate maximum for the A classification by 
88.31 	the standard weight for that classification under Minnesota Rules, parts 9549.0050 to 
88.32 	9549.0059, to determine the applicable payment rate maximum. Service payment rate 
88.33 	maximums shall be updated annually based on legislatively adopted changes to all service 
88.34 	rates for home and community-based service providers.
88.35 	(g) Notwithstanding the requirements of paragraphs (d) and (f), the commissioner 
88.36 	may establish alternative payment rate systems for 24-hour customized living services in 
89.1 	housing with services establishments which are freestanding buildings with a capacity of 
89.2 	16 or fewer, by applying a single hourly rate for covered component services provided 
89.3 	in either:
89.4 	(1) licensed corporate adult foster homes; or
89.5 	(2) specialized dementia care units which meet the requirements of section 144D.065 
89.6 	and in which:
89.7 	(i) each resident is offered the option of having their own apartment; or
89.8 	(ii) the units are licensed as board and lodge establishments with maximum capacity 
89.9 	of eight residents, and which meet the requirements of Minnesota Rules, part 9555.6205, 
89.10 	subparts 1, 2, 3, and 4, item A.
89.11 	(h) 24-hour customized living services are delivered by a provider licensed by 
89.12 	the Department of Health as a class A or class F home care provider and provided in a 
89.13 	building that is registered as a housing with services establishment under chapter 144D. 
89.14 	Licensed home care providers are subject to section 256B.0651, subdivision 14.
89.15 	(h) (i) A provider may not bill or otherwise charge an elderly waiver participant 
89.16 	or their family for additional units of any allowable component service beyond those 
89.17 	available under the service rate limits described in paragraph (e), nor for additional 
89.18 	units of any allowable component service beyond those approved in the service plan 
89.19 	by the lead agency.

89.20 	Sec. 21. Minnesota Statutes 2010, section 256B.092, subdivision 1b, is amended to 
89.21 	read:
89.22 		Subd. 1b.Individual service plan. (a) The individual service plan must:
89.23 	(1) include the results of the assessment information on the person's need for service, 
89.24 	including identification of service needs that will be or that are met by the person's 
89.25 	relatives, friends, and others, as well as community services used by the general public;
89.26 	(2) identify the person's preferences for services as stated by the person, the person's 
89.27 	legal guardian or conservator, or the parent if the person is a minor;
89.28 	(3) identify long- and short-range goals for the person;
89.29 	(4) identify specific services and the amount and frequency of the services to be 
89.30 	provided to the person based on assessed needs, preferences, and available resources. 
89.31 	The individual service plan shall also specify other services the person needs that are 
89.32 	not available;
89.33 	(5) identify the need for an individual program plan to be developed by the provider 
89.34 	according to the respective state and federal licensing and certification standards, and 
89.35 	additional assessments to be completed or arranged by the provider after service initiation;
90.1 	(6) identify provider responsibilities to implement and make recommendations for 
90.2 	modification to the individual service plan;
90.3 	(7) include notice of the right to request a conciliation conference or a hearing 
90.4 	under section 256.045;
90.5 	(8) be agreed upon and signed by the person, the person's legal guardian 
90.6 	or conservator, or the parent if the person is a minor, and the authorized county 
90.7 	representative; and
90.8 	(9) be reviewed by a health professional if the person has overriding medical needs 
90.9 	that impact the delivery of services.
90.10 	(b) Service planning formats developed for interagency planning such as transition, 
90.11 	vocational, and individual family service plans may be substituted for service planning 
90.12 	formats developed by county agencies.
90.13 	(c) Approved, written, and signed changes to a consumer's services that meet the 
90.14 	criteria in this subdivision shall be an addendum to that consumer's individual service plan.

90.15 	Sec. 22. Minnesota Statutes 2010, section 256B.092, is amended by adding a 
90.16 	subdivision to read:
90.17 		Subd. 1h.Commissioner's authority to reduce licensed capacity of adult foster 
90.18 	care. At the time of reassessment, lead agency case managers shall assess each recipient 
90.19 	of home and community-based services waivers for individuals with developmental 
90.20 	disabilities currently residing in a licensed adult foster care home that is not the primary 
90.21 	residence of the license holder, or in which the license holder is not the primary caregiver, 
90.22 	to determine if that resident could appropriately be served in a community-living setting. 
90.23 	If appropriate for the recipient, the case manager shall offer the recipient, through a 
90.24 	person-centered planning process, the option to receive alternative housing and service 
90.25 	options. In the event that the recipient chooses to transfer from the adult foster care home, 
90.26 	the vacated bed shall not be filled with another recipient of waiver services and group 
90.27 	residential housing, unless provided under section 245A.03, subdivision 7, paragraph (a), 
90.28 	clauses (3) and (4), and the licensed capacity shall be reduced accordingly. If the adult 
90.29 	foster care home becomes no longer viable due to these transfers, the county agency, with 
90.30 	the assistance of the commissioner, shall facilitate a consolidation of settings or closure. 
90.31 	This reassessment process shall be completed by July 1, 2013.

90.32 	Sec. 23. Minnesota Statutes 2010, section 256B.092, subdivision 7, is amended to read:
90.33 		Subd. 7.Screening teams. (a) For persons with developmental disabilities, 
90.34 	screening teams shall be established which shall evaluate the need for the level of care 
91.1 	provided by residential-based habilitation services, residential services, training and 
91.2 	habilitation services, and nursing facility services. The evaluation shall address whether 
91.3 	home and community-based services are appropriate for persons who are at risk of 
91.4 	placement in an intermediate care facility for persons with developmental disabilities, or 
91.5 	for whom there is reasonable indication that they might require this level of care. The 
91.6 	screening team shall make an evaluation of need within 60 working days of a request for 
91.7 	service by a person with a developmental disability, and within five working days of 
91.8 	an emergency admission of a person to an intermediate care facility for persons with 
91.9 	developmental disabilities.
91.10 	(b) The screening team shall consist of the case manager for persons with 
91.11 	developmental disabilities, the person, the person's legal guardian or conservator, or the 
91.12 	parent if the person is a minor, and a qualified developmental disability professional, as 
91.13 	defined in the Code of Federal Regulations, title 42, section 483.430, as amended through 
91.14 	June 3, 1988. The case manager may also act as the qualified developmental disability 
91.15 	professional if the case manager meets the federal definition.
91.16 	(c) County social service agencies may contract with a public or private agency 
91.17 	or individual who is not a service provider for the person for the public guardianship 
91.18 	representation required by the screening or individual service planning process. The 
91.19 	contract shall be limited to public guardianship representation for the screening and 
91.20 	individual service planning activities. The contract shall require compliance with the 
91.21 	commissioner's instructions and may be for paid or voluntary services.
91.22 	(d) For persons determined to have overriding health care needs and are 
91.23 	seeking admission to a nursing facility or an ICF/MR, or seeking access to home and 
91.24 	community-based waivered services, a registered nurse must be designated as either the 
91.25 	case manager or the qualified developmental disability professional.
91.26 	(e) For persons under the jurisdiction of a correctional agency, the case manager 
91.27 	must consult with the corrections administrator regarding additional health, safety, and 
91.28 	supervision needs.
91.29 	(f) The case manager, with the concurrence of the person, the person's legal guardian 
91.30 	or conservator, or the parent if the person is a minor, may invite other individuals to 
91.31 	attend meetings of the screening team. With the permission of the person being screened 
91.32 	or the person's designated legal representative, the person's current provider of services 
91.33 	may submit a written report outlining their recommendations regarding the person's care 
91.34 	needs prepared by a direct service employee with at least 20 hours of service to that client. 
91.35 	The screening team must notify the provider of the date by which this information is to 
91.36 	be submitted. This information must be provided to the screening team and the person 
92.1 	or the person's legal representative and must be considered prior to the finalization of 
92.2 	the screening.
92.3 	(g) No member of the screening team shall have any direct or indirect service 
92.4 	provider interest in the case.
92.5 	(h) Nothing in this section shall be construed as requiring the screening team 
92.6 	meeting to be separate from the service planning meeting.

92.7 	Sec. 24. Minnesota Statutes 2010, section 256B.092, is amended by adding a 
92.8 	subdivision to read:
92.9 		Subd. 13.Appeals. A recipient who is adversely affected by the reduction, 
92.10 	suspension, denial, or termination of services under this section may appeal the decision 
92.11 	according to section 256.045. The notice of the reduction, suspension, denial, or 
92.12 	termination of services from the lead agency to the applicant or recipient must be made 
92.13 	in plain language and must include a form for written appeal. The commissioner may 
92.14 	provide lead agencies with a model form for written appeal. The appeal must be in 
92.15 	writing and identify the specific issues the recipient would like to have considered in the 
92.16 	appeal hearing and a summary of the basis, with supporting professional documentation 
92.17 	if available, for contesting the decision.

92.18 	Sec. 25. Minnesota Statutes 2011 Supplement, section 256B.097, subdivision 3, 
92.19 	is amended to read:
92.20 		Subd. 3.State Quality Council. (a) There is hereby created a State Quality 
92.21 	Council which must define regional quality councils, and carry out a community-based, 
92.22 	person-directed quality review component, and a comprehensive system for effective 
92.23 	incident reporting, investigation, analysis, and follow-up.
92.24 	(b) By August 1, 2011, the commissioner of human services shall appoint the 
92.25 	members of the initial State Quality Council. Members shall include representatives 
92.26 	from the following groups:
92.27 	(1) disability service recipients and their family members;
92.28 	(2) during the first two years of the State Quality Council, there must be at least three 
92.29 	members from the Region 10 stakeholders. As regional quality councils are formed under 
92.30 	subdivision 4, each regional quality council shall appoint one member;
92.31 	(3) disability service providers;
92.32 	(4) disability advocacy groups; and
92.33 	(5) county human services agencies and staff from the Department of Human 
92.34 	Services and Ombudsman for Mental Health and Developmental Disabilities.
93.1 	(c) Members of the council who do not receive a salary or wages from an employer 
93.2 	for time spent on council duties may receive a per diem payment when performing council 
93.3 	duties and functions.
93.4 	(d) The State Quality Council shall:
93.5 	(1) assist the Department of Human Services in fulfilling federally mandated 
93.6 	obligations by monitoring disability service quality and quality assurance and 
93.7 	improvement practices in Minnesota; and
93.8 	(2) establish state quality improvement priorities with methods for achieving results 
93.9 	and provide an annual report to the legislative committees with jurisdiction over policy 
93.10 	and funding of disability services on the outcomes, improvement priorities, and activities 
93.11 	undertaken by the commission during the previous state fiscal year.;
93.12 	(3) identify issues pertaining to financial and personal risk that impede Minnesotans 
93.13 	with disabilities from optimizing choice of community-based services; and
93.14 	(4) recommend to the chairs of the legislative committees with jurisdiction over 
93.15 	human services and civil law by January 15, 2013, statutory and rule changes related to 
93.16 	the findings under clause (3) that promote individualized service and housing choices 
93.17 	balanced with appropriate individualized protection.
93.18 	(e) The State Quality Council, in partnership with the commissioner, shall:
93.19 	(1) approve and direct implementation of the community-based, person-directed 
93.20 	system established in this section;
93.21 	(2) recommend an appropriate method of funding this system, and determine the 
93.22 	feasibility of the use of Medicaid, licensing fees, as well as other possible funding options;
93.23 	(3) approve measurable outcomes in the areas of health and safety, consumer 
93.24 	evaluation, education and training, providers, and systems;
93.25 	(4) establish variable licensure periods not to exceed three years based on outcomes 
93.26 	achieved; and
93.27 	(5) in cooperation with the Quality Assurance Commission, design a transition plan 
93.28 	for licensed providers from Region 10 into the alternative licensing system by July 1, 2013.
93.29 	(f) The State Quality Council shall notify the commissioner of human services that a 
93.30 	facility, program, or service has been reviewed by quality assurance team members under 
93.31 	subdivision 4, paragraph (b), clause (13), and qualifies for a license.
93.32 	(g) The State Quality Council, in partnership with the commissioner, shall establish 
93.33 	an ongoing review process for the system. The review shall take into account the 
93.34 	comprehensive nature of the system which is designed to evaluate the broad spectrum of 
93.35 	licensed and unlicensed entities that provide services to persons with disabilities. The 
93.36 	review shall address efficiencies and effectiveness of the system.
94.1 	(h) The State Quality Council may recommend to the commissioner certain 
94.2 	variances from the standards governing licensure of programs for persons with disabilities 
94.3 	in order to improve the quality of services so long as the recommended variances do 
94.4 	not adversely affect the health or safety of persons being served or compromise the 
94.5 	qualifications of staff to provide services.
94.6 	(i) The safety standards, rights, or procedural protections referenced under 
94.7 	subdivision 2, paragraph (c), shall not be varied. The State Quality Council may make 
94.8 	recommendations to the commissioner or to the legislature in the report required under 
94.9 	paragraph (c) regarding alternatives or modifications to the safety standards, rights, or 
94.10 	procedural protections referenced under subdivision 2, paragraph (c).
94.11 	(j) The State Quality Council may hire staff to perform the duties assigned in this 
94.12 	subdivision.

94.13 	Sec. 26. Minnesota Statutes 2010, section 256B.431, subdivision 17e, is amended to 
94.14 	read:
94.15 		Subd. 17e.Replacement-costs-new per bed limit effective October 1, 2007.
 94.16 	Notwithstanding Minnesota Rules, part 9549.0060, subpart 11, item C, subitem (2), 
94.17 	for a total replacement, as defined in subdivision 17d, authorized under section 
94.18 	144A.071 or 144A.073 after July 1, 1999, any building project that is a relocation, 
94.19 	renovation, upgrading, or conversion completed on or after July 1, 2001, or any 
94.20 	building project eligible for reimbursement under section 256B.434, subdivision 4f, the 
94.21 	replacement-costs-new per bed limit shall be $74,280 per licensed bed in multiple-bed 
94.22 	rooms, $92,850 per licensed bed in semiprivate rooms with a fixed partition separating 
94.23 	the resident beds, and $111,420 per licensed bed in single rooms. Minnesota Rules, part 
94.24 	9549.0060, subpart 11, item C, subitem (2), does not apply. These amounts must be 
94.25 	adjusted annually as specified in subdivision 3f, paragraph (a), beginning January 1, 
94.26 	2000. These amounts must be increased annually as specified in subdivision 3f, paragraph 
94.27 	(a), beginning October 1, 2012.

94.28 	Sec. 27. Minnesota Statutes 2010, section 256B.431, is amended by adding a 
94.29 	subdivision to read:
94.30 		Subd. 45.Rate adjustments for some moratorium exception projects.
 94.31 	Notwithstanding any other law to the contrary, money available for moratorium exception 
94.32 	projects under section 144A.073, subdivisions 2 and 11, shall be used to fund the 
94.33 	incremental rate increases resulting from this section for any nursing facility with a 
94.34 	moratorium exception project approved under section 144A.073, and completed after 
95.1 	August 30, 2010, where the replacement-costs-new limits under subdivision 17e were 
95.2 	higher at any time after project approval than at the time of project completion. The 
95.3 	commissioner shall calculate the property rate increase for these facilities using the highest 
95.4 	set of limits; however, any rate increase under this section shall not be effective until on 
95.5 	or after the effective date of this section, contingent upon federal approval. No property 
95.6 	rate decrease shall result from this section.

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

95.8 	Sec. 28. Minnesota Statutes 2011 Supplement, section 256B.49, subdivision 14, 
95.9 	is amended to read:
95.10 		Subd. 14.Assessment and reassessment. (a) Assessments of each recipient's 
95.11 	strengths, informal support systems, and need for services shall be completed within 20 
95.12 	working days of the recipient's request as provided in section 256B.0911. Reassessment of 
95.13 	each recipient's strengths, support systems, and need for services shall be conducted at 
95.14 	least every 12 months and at other times when there has been a significant change in the 
95.15 	recipient's functioning. With the permission of the recipient or the recipient's designated 
95.16 	legal representative, the recipient's current provider of services may submit a written 
95.17 	report outlining their recommendations regarding the recipient's care needs prepared by 
95.18 	a direct service employee with at least 20 hours of service to that client. The person 
95.19 	conducting the assessment or reassessment must notify the provider of the date by which 
95.20 	this information is to be submitted. This information shall be provided to the person 
95.21 	conducting the assessment and the person or the person's legal representative and must be 
95.22 	considered prior to the finalization of the assessment or reassessment.
95.23 	(b) There must be a determination that the client requires a hospital level of care or a 
95.24 	nursing facility level of care as defined in section 256B.0911, subdivision 4a, paragraph 
95.25 	(d), at initial and subsequent assessments to initiate and maintain participation in the 
95.26 	waiver program.
95.27 	(c) Regardless of other assessments identified in section 144.0724, subdivision 4, as 
95.28 	appropriate to determine nursing facility level of care for purposes of medical assistance 
95.29 	payment for nursing facility services, only face-to-face assessments conducted according 
95.30 	to section 256B.0911, subdivisions 3a, 3b, and 4d, that result in a hospital level of care 
95.31 	determination or a nursing facility level of care determination must be accepted for 
95.32 	purposes of initial and ongoing access to waiver services payment.
95.33 	(d) Persons with developmental disabilities who apply for services under the nursing 
95.34 	facility level waiver programs shall be screened for the appropriate level of care according 
95.35 	to section 256B.092.
96.1 	(e) Recipients who are found eligible for home and community-based services under 
96.2 	this section before their 65th birthday may remain eligible for these services after their 
96.3 	65th birthday if they continue to meet all other eligibility factors.
96.4 	(f) The commissioner shall develop criteria to identify recipients whose level of 
96.5 	functioning is reasonably expected to improve and reassess these recipients to establish 
96.6 	a baseline assessment. Recipients who meet these criteria must have a comprehensive 
96.7 	transitional service plan developed under subdivision 15, paragraphs (b) and (c), and be 
96.8 	reassessed every six months until there has been no significant change in the recipient's 
96.9 	functioning for at least 12 months. After there has been no significant change in the 
96.10 	recipient's functioning for at least 12 months, reassessments of the recipient's strengths, 
96.11 	informal support systems, and need for services shall be conducted at least every 12 
96.12 	months and at other times when there has been a significant change in the recipient's 
96.13 	functioning. Counties, case managers, and service providers are responsible for 
96.14 	conducting these reassessments and shall complete the reassessments out of existing funds.

96.15 	Sec. 29. Minnesota Statutes 2011 Supplement, section 256B.49, subdivision 15, 
96.16 	is amended to read:
96.17 		Subd. 15.Individualized service plan; comprehensive transitional service plan; 
96.18 	maintenance service plan. (a) Each recipient of home and community-based waivered 
96.19 	services shall be provided a copy of the written service plan which:
96.20 	(1) is developed and signed by the recipient within ten working days of the 
96.21 	completion of the assessment;
96.22 	(2) meets the assessed needs of the recipient;
96.23 	(3) reasonably ensures the health and safety of the recipient;
96.24 	(4) promotes independence;
96.25 	(5) allows for services to be provided in the most integrated settings; and
96.26 	(6) provides for an informed choice, as defined in section 256B.77, subdivision 2, 
96.27 	paragraph (p), of service and support providers.
96.28 	(b) In developing the comprehensive transitional service plan, the individual 
96.29 	receiving services, the case manager, and the guardian, if applicable, will identify 
96.30 	the transitional service plan fundamental service outcome and anticipated timeline to 
96.31 	achieve this outcome. Within the first 20 days following a recipient's request for an 
96.32 	assessment or reassessment, the transitional service planning team must be identified. A 
96.33 	team leader must be identified who will be responsible for assigning responsibility and 
96.34 	communicating with team members to ensure implementation of the transition plan and 
96.35 	ongoing assessment and communication process. The team leader should be an individual, 
97.1 	such as the case manager or guardian, who has the opportunity to follow the recipient to 
97.2 	the next level of service.
97.3 	Within ten days following an assessment, a comprehensive transitional service plan 
97.4 	must be developed incorporating elements of a comprehensive functional assessment and 
97.5 	including short-term measurable outcomes and timelines for achievement of and reporting 
97.6 	on these outcomes. Functional milestones must also be identified and reported according 
97.7 	to the timelines agreed upon by the transitional service planning team. In addition, the 
97.8 	comprehensive transitional service plan must identify additional supports that may assist 
97.9 	in the achievement of the fundamental service outcome such as the development of greater 
97.10 	natural community support, increased collaboration among agencies, and technological 
97.11 	supports.
97.12 	The timelines for reporting on functional milestones will prompt a reassessment of 
97.13 	services provided, the units of services, rates, and appropriate service providers. It is 
97.14 	the responsibility of the transitional service planning team leader to review functional 
97.15 	milestone reporting to determine if the milestones are consistent with observable skills 
97.16 	and that milestone achievement prompts any needed changes to the comprehensive 
97.17 	transitional service plan.
97.18 	For those whose fundamental transitional service outcome involves the need to 
97.19 	procure housing, a plan for the recipient to seek the resources necessary to secure the least 
97.20 	restrictive housing possible should be incorporated into the plan, including employment 
97.21 	and public supports such as housing access and shelter needy funding.
97.22 	(c) Counties and other agencies responsible for funding community placement and 
97.23 	ongoing community supportive services are responsible for the implementation of the 
97.24 	comprehensive transitional service plans. Oversight responsibilities include both ensuring 
97.25 	effective transitional service delivery and efficient utilization of funding resources.
97.26 	(d) Following one year of transitional services, the transitional services planning 
97.27 	team will make a determination as to whether or not the individual receiving services 
97.28 	requires the current level of continuous and consistent support in order to maintain the 
97.29 	recipient's current level of functioning. Recipients who are determined to have not had 
97.30 	a significant change in functioning for 12 months must move from a transitional to a 
97.31 	maintenance service plan. Recipients on a maintenance service plan must be reassessed 
97.32 	to determine if the recipient would benefit from a transitional service plan at least every 
97.33 	12 months and at other times when there has been a significant change in the recipient's 
97.34 	functioning. This assessment should consider any changes to technological or natural 
97.35 	community supports.
98.1 	(e) When a county is evaluating denials, reductions, or terminations of home and 
98.2 	community-based services under section 256B.49 for an individual, the case manager 
98.3 	shall offer to meet with the individual or the individual's guardian in order to discuss the 
98.4 	prioritization of service needs within the individualized service plan, comprehensive 
98.5 	transitional service plan, or maintenance service plan. The reduction in the authorized 
98.6 	services for an individual due to changes in funding for waivered services may not exceed 
98.7 	the amount needed to ensure medically necessary services to meet the individual's health, 
98.8 	safety, and welfare.
98.9 	(f) At the time of reassessment, local agency case managers shall assess each 
98.10 	recipient of community alternatives for disabled individuals or traumatic brain injury 
98.11 	waivered services currently residing in a licensed adult foster home that is not the primary 
98.12 	residence of the license holder, or in which the license holder is not the primary caregiver, 
98.13 	to determine if that recipient could appropriately be served in a community-living setting. 
98.14 	If appropriate for the recipient, the case manager shall offer the recipient, through a 
98.15 	person-centered planning process, the option to receive alternative housing and service 
98.16 	options. In the event that the recipient chooses to transfer from the adult foster home, 
98.17 	the vacated bed shall not be filled with another recipient of waiver services and group 
98.18 	residential housing , unlessThe licensed capacity shall be reduced accordingly, unless the 
98.19 	savings required by the 2011 licensed bed closure reductions for foster care settings where 
98.20 	the physical location is not the primary residence of the license holder are met through 
98.21 	voluntary changes described in section 245A.03, subdivision 7, paragraph (f), or as 
98.22 	provided under section 245A.03, subdivision 7, paragraph (a), clauses (3) and (4), and the 
98.23 	licensed capacity shall be reduced accordingly. If the adult foster home becomes no longer 
98.24 	viable due to these transfers, the county agency, with the assistance of the department, 
98.25 	shall facilitate a consolidation of settings or closure. This reassessment process shall be 
98.26 	completed by June 30, 2012 July 1, 2013.

98.27 	Sec. 30. Minnesota Statutes 2011 Supplement, section 256B.49, subdivision 23, 
98.28 	is amended to read:
98.29 		Subd. 23.Community-living settings. "Community-living settings" means a 
98.30 	single-family home or apartment where the service recipient or their family owns or rents, 
98.31 	as demonstrated by a lease agreement, and maintains control over the individual unit. as 
98.32 	demonstrated by the lease agreement, or has a plan for transition of a lease from a service 
98.33 	provider to the individual. Within two years of signing the initial lease, the service provider 
98.34 	shall transfer the lease to the individual. In the event the landlord denies the transfer, the 
99.1 	commissioner may approve an exception within sufficient time to ensure the continued 
99.2 	occupancy by the individual. Community-living settings are subject to the following:
99.3 	(1) individuals are not required to receive services;
99.4 	(2) individuals are not required to have a disability or specific diagnosis to live in the 
99.5 	community-living setting unless state or federal funding for housing requires it;
99.6 	(3) individuals may hire service providers of their choice;
99.7 	(4) individuals may choose whether to share their household and with whom;
99.8 	(5) the home or apartment must include living, sleeping, bathing, and cooking areas;
99.9 	(6) individuals must have lockable access and egress;
99.10 	(7) individuals must be free to receive visitors and leave the settings at times and for 
99.11 	durations of their own choosing;
99.12 	(8) leases must not reserve the right to assign units or change unit assignments; and
99.13 	(9) access to the greater community must be easily facilitated based on the 
99.14 	individual's needs and preferences.

99.15 	Sec. 31. Minnesota Statutes 2010, section 256B.49, is amended by adding a 
99.16 	subdivision to read:
99.17 		Subd. 24.Appeals. A recipient who is adversely affected by the reduction, 
99.18 	suspension, denial, or termination of services under this section may appeal the decision 
99.19 	according to section 256.045. The notice of the reduction, suspension, denial, or 
99.20 	termination of services from the lead agency to the applicant or recipient must be made 
99.21 	in plain language and must include a form for written appeal. The commissioner may 
99.22 	provide lead agencies with a model form for written appeal. The appeal must be in 
99.23 	writing and identify the specific issues the recipient would like to have considered in the 
99.24 	appeal hearing and a summary of the basis, with supporting professional documentation 
99.25 	if available, for contesting the decision.

99.26 	Sec. 32. [256B.492] HOME AND COMMUNITY-BASED SETTINGS.
99.27 	(a) For purposes of the home and community-based waiver programs under sections 
99.28 	256B.092 and 256B.49, home and community-based settings include:
99.29 	(1) licensed adult or child foster care settings of four or five, if emergency exception 
99.30 	criteria are met; and
99.31 	(2) other settings that meet the definition of "community-living settings" under 
99.32 	section 256B.49, subdivision 23:
99.33 	(i) in addition to this definition, if a single corporation or entity provides both 
99.34 	housing and services, there must be a distinct separation between the housing and services;
100.1 	(ii) individuals may choose a service provider separate from the housing provider 
100.2 	without being required to move; and
100.3 	(iii) for settings that meet this definition, individuals with disabilities may reside in 
100.4 	up to four units plus 25 percent of the remaining units in the building unless an exception 
100.5 	is granted under paragraph (c).
100.6 	(b) For purposes of the home and community-based waiver programs under sections 
100.7 	256B.092 and 256B.49, home and community-based settings must not:
100.8 	(1) be located in a building that is also a publicly or privately operated facility that 
100.9 	provides institutional treatment or custodial care;
100.10 	(2) be located in a building on the grounds of, or immediately adjacent to, a public or 
100.11 	private institution;
100.12 	(3) be a housing complex designed expressly around an individual's diagnosis or 
100.13 	disability;
100.14 	(4) be segregated based on disability, either physically or because of setting 
100.15 	characteristics, from the larger community; or
100.16 	(5) have the qualities of an institution which include, but are not limited to: 
100.17 	regimented meal and sleep times, limitations on visitors, and lack of privacy. Restrictions 
100.18 	agreed to and documented in the person's individual service plan shall not result in a 
100.19 	residence having the qualities of an institution as long as the restrictions for the person are 
100.20 	not imposed upon others in the same residence and are the least restrictive alternative, 
100.21 	imposed for the shortest possible time to meet the person's needs.
100.22 	(c) The provisions of this section do not apply to any setting in which residents 
100.23 	receive services under a home and community-based waiver as of June 30, 2013, and 
100.24 	which have been delivering those services for at least one year.
100.25 	(d) Notwithstanding paragraph (c), a program in Hennepin County established as 
100.26 	part of a Hennepin County demonstration project by January 1, 2013, is qualified for 
100.27 	the exception allowed under paragraph (c).

100.28 	Sec. 33. Minnesota Statutes 2011 Supplement, section 256B.5012, subdivision 13, 
100.29 	is amended to read:
100.30 		Subd. 13.ICF/DD rate decrease effective July 1, 2012 2013. Notwithstanding 
100.31 	subdivision 12, and if the commissioner has not received federal approval before July 1, 
100.32 	2013, of the Long-Term Care Realignment Waiver application submitted under Laws 
100.33 	2011, First Special Session chapter 9, article 7, section 52, for each facility reimbursed 
100.34 	under this section for services provided from July 1, 2013, through December 31, 2013, 
100.35 	the commissioner shall decrease operating payments equal to 1.67 percent of the operating 
101.1 	payment rates in effect on June 30, 2012 2013. For each facility, the commissioner shall 
101.2 	apply the rate reduction based on occupied beds, using the percentage specified in this 
101.3 	subdivision multiplied by the total payment rate, including the variable rate but excluding 
101.4 	the property-related payment rate, in effect on the preceding date. The total rate reduction 
101.5 	shall include the adjustment provided in section 256B.501, subdivision 12.

101.6 	Sec. 34. Minnesota Statutes 2010, section 256D.44, subdivision 5, is amended to read:
101.7 		Subd. 5.Special needs. In addition to the state standards of assistance established in 
101.8 	subdivisions 1 to 4, payments are allowed for the following special needs of recipients of 
101.9 	Minnesota supplemental aid who are not residents of a nursing home, a regional treatment 
101.10 	center, or a group residential housing facility.
101.11 	(a) The county agency shall pay a monthly allowance for medically prescribed 
101.12 	diets if the cost of those additional dietary needs cannot be met through some other 
101.13 	maintenance benefit. The need for special diets or dietary items must be prescribed by 
101.14 	a licensed physician. Costs for special diets shall be determined as percentages of the 
101.15 	allotment for a one-person household under the thrifty food plan as defined by the United 
101.16 	States Department of Agriculture. The types of diets and the percentages of the thrifty 
101.17 	food plan that are covered are as follows:
101.18 	(1) high protein diet, at least 80 grams daily, 25 percent of thrifty food plan;
101.19 	(2) controlled protein diet, 40 to 60 grams and requires special products, 100 percent 
101.20 	of thrifty food plan;
101.21 	(3) controlled protein diet, less than 40 grams and requires special products, 125 
101.22 	percent of thrifty food plan;
101.23 	(4) low cholesterol diet, 25 percent of thrifty food plan;
101.24 	(5) high residue diet, 20 percent of thrifty food plan;
101.25 	(6) pregnancy and lactation diet, 35 percent of thrifty food plan;
101.26 	(7) gluten-free diet, 25 percent of thrifty food plan;
101.27 	(8) lactose-free diet, 25 percent of thrifty food plan;
101.28 	(9) antidumping diet, 15 percent of thrifty food plan;
101.29 	(10) hypoglycemic diet, 15 percent of thrifty food plan; or
101.30 	(11) ketogenic diet, 25 percent of thrifty food plan.
101.31 	(b) Payment for nonrecurring special needs must be allowed for necessary home 
101.32 	repairs or necessary repairs or replacement of household furniture and appliances using 
101.33 	the payment standard of the AFDC program in effect on July 16, 1996, for these expenses, 
101.34 	as long as other funding sources are not available.
102.1 	(c) A fee for guardian or conservator service is allowed at a reasonable rate 
102.2 	negotiated by the county or approved by the court. This rate shall not exceed five percent 
102.3 	of the assistance unit's gross monthly income up to a maximum of $100 per month. If the 
102.4 	guardian or conservator is a member of the county agency staff, no fee is allowed.
102.5 	(d) The county agency shall continue to pay a monthly allowance of $68 for 
102.6 	restaurant meals for a person who was receiving a restaurant meal allowance on June 1, 
102.7 	1990, and who eats two or more meals in a restaurant daily. The allowance must continue 
102.8 	until the person has not received Minnesota supplemental aid for one full calendar month 
102.9 	or until the person's living arrangement changes and the person no longer meets the criteria 
102.10 	for the restaurant meal allowance, whichever occurs first.
102.11 	(e) A fee of ten percent of the recipient's gross income or $25, whichever is less, 
102.12 	is allowed for representative payee services provided by an agency that meets the 
102.13 	requirements under SSI regulations to charge a fee for representative payee services. This 
102.14 	special need is available to all recipients of Minnesota supplemental aid regardless of 
102.15 	their living arrangement.
102.16 	(f)(1) Notwithstanding the language in this subdivision, an amount equal to the 
102.17 	maximum allotment authorized by the federal Food Stamp Program for a single individual 
102.18 	which is in effect on the first day of July of each year will be added to the standards of 
102.19 	assistance established in subdivisions 1 to 4 for adults under the age of 65 who qualify 
102.20 	as shelter needy and are: (i) relocating from an institution, or an adult mental health 
102.21 	residential treatment program under section 256B.0622; (ii) eligible for the self-directed 
102.22 	supports option as defined under section 256B.0657, subdivision 2; or (iii) home and 
102.23 	community-based waiver recipients living in their own home or rented or leased apartment 
102.24 	which is not owned, operated, or controlled by a provider of service not related by blood 
102.25 	or marriage, unless allowed under paragraph (g).
102.26 	(2) Notwithstanding subdivision 3, paragraph (c), an individual eligible for the 
102.27 	shelter needy benefit under this paragraph is considered a household of one. An eligible 
102.28 	individual who receives this benefit prior to age 65 may continue to receive the benefit 
102.29 	after the age of 65.
102.30 	(3) "Shelter needy" means that the assistance unit incurs monthly shelter costs that 
102.31 	exceed 40 percent of the assistance unit's gross income before the application of this 
102.32 	special needs standard. "Gross income" for the purposes of this section is the applicant's or 
102.33 	recipient's income as defined in section 256D.35, subdivision 10, or the standard specified 
102.34 	in subdivision 3, paragraph (a) or (b), whichever is greater. A recipient of a federal or 
102.35 	state housing subsidy, that limits shelter costs to a percentage of gross income, shall not be 
102.36 	considered shelter needy for purposes of this paragraph.
103.1 	(g) Notwithstanding this subdivision, to access housing and services as provided 
103.2 	in paragraph (f), the recipient may choose housing that may be owned, operated, or 
103.3 	controlled by the recipient's service provider. In a multifamily building of four or more 
103.4 	units, the maximum number of apartments that may be used by recipients of this program 
103.5 	shall be 50 percent of the units in a building. This paragraph expires on June 30, 2012. of 
103.6 	more than four units, the maximum number of units that may be used by recipients of this 
103.7 	program shall be 50 percent of the units in the building. When housing is controlled by 
103.8 	the service provider, the individual may choose the individual's own service provider as 
103.9 	provided in section 256B.49, subdivision 23, clause (3). When the housing is controlled 
103.10 	by the service provider, the service provider shall implement a plan with the recipient to 
103.11 	transition the lease to the recipient's name. Within two years of signing the initial lease, 
103.12 	the service provider shall transfer the lease entered into under this subdivision to the 
103.13 	recipient. In the event the landlord denies this transfer, the commissioner may approve an 
103.14 	exception within sufficient time to ensure the continued occupancy by the recipient. This 
103.15 	paragraph expires June 30, 2016. 

103.16 	Sec. 35. Laws 2011, First Special Session chapter 9, article 7, section 52, is amended to 
103.17 	read:
103.18 	Sec. 52. IMPLEMENT NURSING HOME LEVEL OF CARE CRITERIA.
 103.19 	The commissioner shall seek any necessary federal approval in order to implement 
103.20 	the changes to the level of care criteria in Minnesota Statutes, section 144.0724, 
103.21 	subdivision 11, on or after July 1, 2012, for adults and children.

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

103.23 	Sec. 36. Laws 2011, First Special Session chapter 9, article 7, section 54, is amended to 
103.24 	read:
103.25 	Sec. 54. CONTINGENCY PROVIDER RATE AND GRANT REDUCTIONS.
 103.26 	(a) Notwithstanding any other rate reduction in this article, if the commissioner of 
103.27 	human services has not received federal approval before July 1, 2013, of the long-term 
103.28 	care realignment waiver application submitted under Laws 2011, First Special Session 
103.29 	chapter 9, article 7, section 52, the commissioner ofhuman services shall decrease grants, 
103.30 	allocations, reimbursement rates, individual limits, and rate limits, as applicable, by 1.67 
103.31 	percent effective July 1, 2012 2013, for services rendered on or after those dates from July 
103.32 	1, 2013, through December 31, 2013. County or tribal contracts for services specified in 
103.33 	this section must be amended to pass through these rate reductions within 60 days of 
104.1 	the effective date of the decrease, and must be retroactive from the effective date of the 
104.2 	rate decrease.
104.3 	(b) The rate changes described in this section must be provided to:
104.4 	(1) home and community-based waivered services for persons with developmental 
104.5 	disabilities or related conditions, including consumer-directed community supports, under 
104.6 	Minnesota Statutes, section 256B.501;
104.7 	(2) home and community-based waivered services for the elderly, including 
104.8 	consumer-directed community supports, under Minnesota Statutes, section 256B.0915;
104.9 	(3) waivered services under community alternatives for disabled individuals, 
104.10 	including consumer-directed community supports, under Minnesota Statutes, section 
104.11 	256B.49;
104.12 	(4) community alternative care waivered services, including consumer-directed 
104.13 	community supports, under Minnesota Statutes, section 256B.49;
104.14 	(5) traumatic brain injury waivered services, including consumer-directed 
104.15 	community supports, under Minnesota Statutes, section 256B.49;
104.16 	(6) nursing services and home health services under Minnesota Statutes, section 
104.17 	256B.0625, subdivision 6a;
104.18 	(7) personal care services and qualified professional supervision of personal care 
104.19 	services under Minnesota Statutes, section 256B.0625, subdivisions 6a and 19a;
104.20 	(8) private duty nursing services under Minnesota Statutes, section 256B.0625, 
104.21 	subdivision 7;
104.22 	(9) day training and habilitation services for adults with developmental disabilities 
104.23 	or related conditions, under Minnesota Statutes, sections 252.40 to 252.46, including the 
104.24 	additional cost of rate adjustments on day training and habilitation services, provided as a 
104.25 	social service under Minnesota Statutes, section 256M.60; and
104.26 	(10) alternative care services under Minnesota Statutes, section 256B.0913.
104.27 	(c) A managed care plan receiving state payments for the services in this section 
104.28 	must include these decreases in their payments to providers. To implement the rate 
104.29 	reductions in this section, capitation rates paid by the commissioner to managed care 
104.30 	organizations under Minnesota Statutes, section 256B.69, shall reflect a 2.34 1.67 percent 
104.31 	reduction for the specified services for the period of January 1, 2013, through June 30, 
104.32 	2013, and a 1.67 percent reduction for those services on and after July 1 July 1, 2013, 
104.33 	through December 31, 2013.
104.34 	The above payment rate reduction, allocation rates, and rate limits shall expire for 
104.35 	services rendered on December 31, 2013.

105.1 	Sec. 37. Laws 2011, First Special Session chapter 9, article 10, section 3, subdivision 
105.2 	3, is amended to read:

105.3	Subd. 3.Forecasted Programs
 					
105.4 	The amounts that may be spent from this 
105.5 	appropriation for each purpose are as follows:

105.6	(a) MFIP/DWP Grants

105.7	Appropriations by Fund
	
105.8	General
	84,680,000
	91,978,000
	
105.9	Federal TANF
	84,425,000
	75,417,000

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

105.11	(c) General Assistance Grants
		49,192,000
		46,938,000
	
105.12 	General Assistance Standard. The 
105.13 	commissioner shall set the monthly standard 
105.14 	of assistance for general assistance units 
105.15 	consisting of an adult recipient who is 
105.16 	childless and unmarried or living apart 
105.17 	from parents or a legal guardian at $203. 
105.18 	The commissioner may reduce this amount 
105.19 	according to Laws 1997, chapter 85, article 
105.20 	3, section 54.
105.21 	Emergency General Assistance. The 
105.22 	amount appropriated for emergency general 
105.23 	assistance funds is limited to no more 
105.24 	than $6,689,812 in fiscal year 2012 and 
105.25 	$6,729,812 in fiscal year 2013. Funds 
105.26 	to counties shall be allocated by the 
105.27 	commissioner using the allocation method 
105.28 	specified in Minnesota Statutes, section 
105.29 	256D.06.

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

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

105.32	(f) MinnesotaCare Grants
		295,046,000
		317,272,000
	
106.1 	This appropriation is from the health care 
106.2 	access fund.

106.3	(g) Medical Assistance Grants
		4,501,582,000
		4,437,282,000
	
106.4 	Managed Care Incentive Payments. The 
106.5 	commissioner shall not make managed care 
106.6 	incentive payments for expanding preventive 
106.7 	services during fiscal years beginning July 1, 
106.8 	2011, and July 1, 2012.
106.9 	Reduction of Rates for Congregate 
106.10 	Living for Individuals with Lower Needs. 
106.11 	Beginning October 1, 2011, through June 
106.12 	30, 2012, lead agencies must reduce rates in 
106.13 	effect on January 1, 2011, by ten percent for 
106.14 	individuals with lower needs living in foster 
106.15 	care settings where the license holder does 
106.16 	not share the residence with recipients on 
106.17 	the CADI and DD waivers and customized 
106.18 	living settings for CADI. Beginning July 
106.19 	1, 2012, lead agencies must reduce rates in 
106.20 	effect on January 1, 2011, by ten percent, 
106.21 	for individuals living in foster care settings 
106.22 	where the license holder does not share the 
106.23 	residence with recipients on the CADI and 
106.24 	DD waivers and customized living settings 
106.25 	for CADI, in a manner that ensures that: 
106.26 	(1) an identical percentage of recipients 
106.27 	receiving services under each waiver receive 
106.28 	a reduction; and (2) the projected savings 
106.29 	for this provision for fiscal year 2013 are 
106.30 	achieved, notwithstanding whether or not a 
106.31 	recipient is an individual with lower needs.
106.32 	Lead agencies must adjust contracts within 
106.33 	60 days of the effective date.
106.34 	Reduction of Lead Agency Waiver 
106.35 	Allocations to Implement Rate Reductions 
107.1 	for Congregate Living for Individuals 
107.2 	with Lower Needs. Beginning October 1, 
107.3 	2011, the commissioner shall reduce lead 
107.4 	agency waiver allocations to implement the 
107.5 	reduction of rates for individuals with lower 
107.6 	needs living in foster care settings where the 
107.7 	license holder does not share the residence 
107.8 	with recipients on the CADI and DD waivers 
107.9 	and customized living settings for CADI.
107.10 	Reduce customized living and 24-hour 
107.11 	customized living component rates.
107.12 	Effective July 1, 2011, the commissioner 
107.13 	shall reduce elderly waiver customized living 
107.14 	and 24-hour customized living component 
107.15 	service spending by five percent through 
107.16 	reductions in component rates and service 
107.17 	rate limits. The commissioner shall adjust 
107.18 	the elderly waiver capitation payment 
107.19 	rates for managed care organizations paid 
107.20 	under Minnesota Statutes, section 256B.69, 
107.21 	subdivisions 6a and 23, to reflect reductions 
107.22 	in component spending for customized living 
107.23 	services and 24-hour customized living 
107.24 	services under Minnesota Statutes, section 
107.25 	256B.0915, subdivisions 3e and 3h, for the 
107.26 	contract period beginning January 1, 2012. 
107.27 	To implement the reduction specified in 
107.28 	this provision, capitation rates paid by the 
107.29 	commissioner to managed care organizations 
107.30 	under Minnesota Statutes, section 256B.69, 
107.31 	shall reflect a ten percent reduction for the 
107.32 	specified services for the period January 1, 
107.33 	2012, to June 30, 2012, and a five percent 
107.34 	reduction for those services on or after July 
107.35 	1, 2012.
108.1 	Limit Growth in the Developmental 
108.2 	Disability Waiver. The commissioner 
108.3 	shall limit growth in the developmental 
108.4 	disability waiver to six diversion allocations 
108.5 	per month beginning July 1, 2011, through 
108.6 	June 30, 2013, and 15 diversion allocations 
108.7 	per month beginning July 1, 2013, through 
108.8 	June 30, 2015. Waiver allocations shall 
108.9 	be targeted to individuals who meet the 
108.10 	priorities for accessing waiver services 
108.11 	identified in Minnesota Statutes, 256B.092, 
108.12 	subdivision 12. The limits do not include 
108.13 	conversions from intermediate care facilities 
108.14 	for persons with developmental disabilities. 
108.15 	Notwithstanding any contrary provisions in 
108.16 	this article, this paragraph expires June 30, 
108.17 	2015.
108.18 	Limit Growth in the Community 
108.19 	Alternatives for Disabled Individuals 
108.20 	Waiver. The commissioner shall limit 
108.21 	growth in the community alternatives for 
108.22 	disabled individuals waiver to 60 allocations 
108.23 	per month beginning July 1, 2011, through 
108.24 	June 30, 2013, and 85 allocations per 
108.25 	month beginning July 1, 2013, through 
108.26 	June 30, 2015. Waiver allocations must 
108.27 	be targeted to individuals who meet the 
108.28 	priorities for accessing waiver services 
108.29 	identified in Minnesota Statutes, section 
108.30 	256B.49, subdivision 11a. The limits include 
108.31 	conversions and diversions, unless the 
108.32 	commissioner has approved a plan to convert 
108.33 	funding due to the closure or downsizing 
108.34 	of a residential facility or nursing facility 
108.35 	to serve directly affected individuals on 
108.36 	the community alternatives for disabled 
109.1 	individuals waiver. Notwithstanding any 
109.2 	contrary provisions in this article, this 
109.3 	paragraph expires June 30, 2015.
109.4 	Personal Care Assistance Relative 
109.5 	Care. The commissioner shall adjust the 
109.6 	capitation payment rates for managed care 
109.7 	organizations paid under Minnesota Statutes, 
109.8 	section 256B.69, to reflect the rate reductions 
109.9 	for personal care assistance provided by 
109.10 	a relative pursuant to Minnesota Statutes, 
109.11 	section 256B.0659, subdivision 11.

109.12	(h) Alternative Care Grants
		46,421,000
		46,035,000
	
109.13 	Alternative Care Transfer. Any money 
109.14 	allocated to the alternative care program that 
109.15 	is not spent for the purposes indicated does 
109.16 	not cancel but shall be transferred to the 
109.17 	medical assistance account.

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

109.19 	Sec. 38. Laws 2011, First Special Session chapter 9, article 10, section 3, subdivision 
109.20 	4, is amended to read:

109.21	Subd. 4.Grant Programs
 					
109.22 	The amounts that may be spent from this 
109.23 	appropriation for each purpose are as follows:

109.24	(a) Support Services Grants

109.25	Appropriations by Fund
	
109.26	General
	8,715,000
	8,715,000
	
109.27	Federal TANF
	100,525,000
	94,611,000
	
109.28 	MFIP Consolidated Fund Grants. The 
109.29 	TANF fund base is reduced by $10,000,000 
109.30 	each year beginning in fiscal year 2012.
109.31 	Subsidized Employment Funding Through 
109.32 	ARRA. The commissioner is authorized to 
109.33 	apply for TANF emergency fund grants for 
110.1 	subsidized employment activities. Growth 
110.2 	in expenditures for subsidized employment 
110.3 	within the supported work program and the 
110.4 	MFIP consolidated fund over the amount 
110.5 	expended in the calendar year quarters in 
110.6 	the TANF emergency fund base year shall 
110.7 	be used to leverage the TANF emergency 
110.8 	fund grants for subsidized employment and 
110.9 	to fund supported work. The commissioner 
110.10 	shall develop procedures to maximize 
110.11 	reimbursement of these expenditures over the 
110.12 	TANF emergency fund base year quarters, 
110.13 	and may contract directly with employers 
110.14 	and providers to maximize these TANF 
110.15 	emergency fund grants.

110.16
110.17	(b) Basic Sliding Fee Child Care Assistance 
Grants
		37,144,000
		38,678,000
	
110.18 	Base Adjustment. The general fund base is 
110.19 	decreased by $990,000 in fiscal year 2014 
110.20 	and $979,000 in fiscal year 2015.
110.21 	Child Care and Development Fund 
110.22 	Unexpended Balance. In addition to 
110.23 	the amount provided in this section, the 
110.24 	commissioner shall expend $5,000,000 
110.25 	in fiscal year 2012 from the federal child 
110.26 	care and development fund unexpended 
110.27 	balance for basic sliding fee child care under 
110.28 	Minnesota Statutes, section 119B.03. The 
110.29 	commissioner shall ensure that all child 
110.30 	care and development funds are expended 
110.31 	according to the federal child care and 
110.32 	development fund regulations.

110.33	(c) Child Care Development Grants
		774,000
		774,000
	
111.1 	Base Adjustment. The general fund base is 
111.2 	increased by $713,000 in fiscal years 2014 
111.3 	and 2015.

111.4	(d) Child Support Enforcement Grants
		50,000
		50,000
	
111.5 	Federal Child Support Demonstration 
111.6 	Grants. Federal administrative 
111.7 	reimbursement resulting from the federal 
111.8 	child support grant expenditures authorized 
111.9 	under section 1115a of the Social Security 
111.10 	Act is appropriated to the commissioner for 
111.11 	this activity.

111.12	(e) Children's Services Grants

111.13	Appropriations by Fund
	
111.14	General
	47,949,000
	48,507,000
	
111.15	Federal TANF
	140,000
	140,000
	
111.16 	Adoption Assistance and Relative Custody 
111.17 	Assistance Transfer. The commissioner 
111.18 	may transfer unencumbered appropriation 
111.19 	balances for adoption assistance and relative 
111.20 	custody assistance between fiscal years and 
111.21 	between programs.
111.22 	Privatized Adoption Grants. Federal 
111.23 	reimbursement for privatized adoption grant 
111.24 	and foster care recruitment grant expenditures 
111.25 	is appropriated to the commissioner for 
111.26 	adoption grants and foster care and adoption 
111.27 	administrative purposes.
111.28 	Adoption Assistance Incentive Grants.
111.29 	Federal funds available during fiscal year 
111.30 	2012 and fiscal year 2013 for adoption 
111.31 	incentive grants are appropriated to the 
111.32 	commissioner for these purposes.

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

111.34	(g) Children and Economic Support Grants

112.1	Appropriations by Fund
	
112.2	General
	16,103,000
	16,180,000
	
112.3	Federal TANF
	700,000
	0
	
112.4 	Long-Term Homeless Services. $700,000 
112.5 	is appropriated from the federal TANF 
112.6 	fund for the biennium beginning July 
112.7 	1, 2011, to the commissioner of human 
112.8 	services for long-term homeless services 
112.9 	for low-income homeless families under 
112.10 	Minnesota Statutes, section 256K.26. This 
112.11 	is a onetime appropriation and is not added 
112.12 	to the base.
112.13 	Base Adjustment. The general fund base is 
112.14 	increased by $42,000 in fiscal year 2014 and 
112.15 	$43,000 in fiscal year 2015.
112.16 	Minnesota Food Assistance Program. 
112.17 	$333,000 in fiscal year 2012 and $408,000 in 
112.18 	fiscal year 2013 are to increase the general 
112.19 	fund base for the Minnesota food assistance 
112.20 	program. Unexpended funds for fiscal year 
112.21 	2012 do not cancel but are available to the 
112.22 	commissioner for this purpose in fiscal year 
112.23 	2013.

112.24	(h) Health Care Grants

112.25	Appropriations by Fund
	
112.26	General
	26,000
	66,000
	
112.27	Health Care Access
	190,000
	190,000
	
112.28 	Base Adjustment. The general fund base is 
112.29 	increased by $24,000 in each of fiscal years 
112.30 	2014 and 2015.

112.31	(i) Aging and Adult Services Grants
		12,154,000
		11,456,000
	
112.32 	Aging Grants Reduction. Effective July 
112.33 	1, 2011, funding for grants made under 
112.34 	Minnesota Statutes, sections 256.9754 and 
113.1 	256B.0917, subdivision 13, is reduced by 
113.2 	$3,600,000 for each year of the biennium. 
113.3 	These reductions are onetime and do 
113.4 	not affect base funding for the 2014-2015 
113.5 	biennium. Grants made during the 2012-2013 
113.6 	biennium under Minnesota Statutes, section 
113.7 	256B.9754, must not be used for new 
113.8 	construction or building renovation.
113.9 	Essential Community Support Grant 
113.10 	Delay. Upon federal approval to implement 
113.11 	the nursing facility level of care on July 
113.12 	1, 2013, essential community supports 
113.13 	grants under Minnesota Statutes, section 
113.14 	256B.0917, subdivision 14, are reduced by 
113.15 	$6,410,000 in fiscal year 2013. Base level 
113.16 	funding is increased by $5,541,000 in fiscal 
113.17 	year 2014 and $6,410,000 in fiscal year 2015.
113.18 	Base Level Adjustment. The general fund 
113.19 	base is increased by $10,035,000 in fiscal 
113.20 	year 2014 and increased by $10,901,000 in 
113.21 	fiscal year 2015.

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

113.23	(k) Disabilities Grants
		15,945,000
		18,284,000
	
113.24 	Grants for Housing Access Services. In 
113.25 	fiscal year 2012, the commissioner shall 
113.26 	make available a total of $161,000 in housing 
113.27 	access services grants to individuals who 
113.28 	relocate from an adult foster care home to 
113.29 	a community living setting for assistance 
113.30 	with completion of rental applications or 
113.31 	lease agreements; assistance with publicly 
113.32 	financed housing options; development of 
113.33 	household budgets; and assistance with 
113.34 	funding affordable furnishings and related 
113.35 	household matters.
114.1 	HIV Grants. The general fund appropriation 
114.2 	for the HIV drug and insurance grant 
114.3 	program shall be reduced by $2,425,000 in 
114.4 	fiscal year 2012 and increased by $2,425,000 
114.5 	in fiscal year 2014. These adjustments are 
114.6 	onetime and shall not be applied to the base. 
114.7 	Notwithstanding any contrary provision, this 
114.8 	provision expires June 30, 2014.
114.9 	Region 10. Of this appropriation, $100,000 
114.10 	each year is for a grant provided under 
114.11 	Minnesota Statutes, section 256B.097.
114.12 	Base Level Adjustment. The general fund 
114.13 	base is increased by $2,944,000 in fiscal year 
114.14 	2014 and $653,000 in fiscal year 2015.
114.15 	Local Planning Grants for Creating 
114.16 	Alternatives to Congregate Living for 
114.17 	Individuals with Lower Needs. Of this 
114.18 	appropriation, $100,000 in fiscal year 2013 
114.19 	is for administrative functions related to the 
114.20 	need determination and planning process 
114.21 	required under Minnesota Statutes, sections 
114.22 	144A.351 and 245A.03, subdivision 7, 
114.23 	paragraphs (e) and (f). The commissioner 
114.24 	shall make available a total of $250,000 per 
114.25 	year $400,000, $250,000 of which carries 
114.26 	forward from fiscal year 2012, in local
114.27 	and regional planning grants, beginning 
114.28 	July 1, 2011 2012, to assist lead agencies 
114.29 	and provider organizations in developing 
114.30 	alternatives to congregate living within the 
114.31 	available level of resources for the home 
114.32 	and community-based services waivers for 
114.33 	persons with disabilities.
114.34 	Disability Linkage Line. Of this 
114.35 	appropriation, $125,000 in fiscal year 2012 
115.1 	and $300,000 in fiscal year 2013 are for 
115.2 	assistance to people with disabilities who are 
115.3 	considering enrolling in managed care.

115.4	(l) Adult Mental Health Grants

115.5	Appropriations by Fund
	
115.6	General
	70,570,000
	70,570,000
	
115.7	Health Care Access
	750,000
	750,000
	
115.8	Lottery Prize
	1,508,000
	1,508,000
	
115.9 	Funding Usage. Up to 75 percent of a fiscal 
115.10 	year's appropriation for adult mental health 
115.11 	grants may be used to fund allocations in that 
115.12 	portion of the fiscal year ending December 
115.13 	31.
115.14 	Base Adjustment. The general fund base is 
115.15 	increased by $200,000 in fiscal years 2014 
115.16 	and 2015.

115.17	(m) Children's Mental Health Grants
		16,457,000
		16,457,000
	
115.18 	Funding Usage. Up to 75 percent of a fiscal 
115.19 	year's appropriation for children's mental 
115.20 	health grants may be used to fund allocations 
115.21 	in that portion of the fiscal year ending 
115.22 	December 31.
115.23 	Base Adjustment. The general fund base is 
115.24 	increased by $225,000 in fiscal years 2014 
115.25 	and 2015.

115.26
115.27	(n) Chemical Dependency Nonentitlement 
Grants
		1,336,000
		1,336,000

115.28 	Sec. 39. INDEPENDENT LIVING SERVICES BILLING.
 115.29 	The commissioner shall allow for daily rate and 15-minute increment billing for 
115.30 	independent living services under the brain injury (BI) and CADI waivers. If necessary to 
115.31 	comply with this requirement, the commissioner shall submit a waiver amendment to the 
115.32 	state plan no later than December 31, 2012.

115.33 	Sec. 40. COMMUNITY FIRST CHOICE OPTION.
 116.1 	(a) If the final federal regulations under Community First Choice Option are 
116.2 	determined by the commissioner, after consultation with interested stakeholders in 
116.3 	paragraph (d), to be compatible with Minnesota's fiscal neutrality and policy requirements 
116.4 	for redesigning and simplifying the personal care assistance program, assistance at home 
116.5 	and in the community provided through the home and community-based services with 
116.6 	waivers, state-funded grants, and medical assistance-funded services and programs, the 
116.7 	commissioner shall develop and request a state plan amendment to establish services, 
116.8 	including self-directed options, under section 1915k of the Social Security Act by January 
116.9 	15, 2013, for implementation on July 1, 2013.
116.10 	(b) The commissioner shall develop and provide to the chairs of the health and 
116.11 	human services policy and finance committees, legislation needed to reform and simplify 
116.12 	home care, home and community-based services waivers, and other community support 
116.13 	services under the Community First Choice Option by February 15, 2013.
116.14 	(c) Any savings generated by this option shall accrue to the commissioner for 
116.15 	development and implementation of community support services under the Community 
116.16 	First Choice Option.
116.17 	(d) The commissioner shall consult with stakeholders, including persons with 
116.18 	disabilities and seniors, who represent a range of disabilities, ages, cultures, and 
116.19 	geographic locations, their families and guardians, as well as representatives of advocacy 
116.20 	organizations, lead agencies, direct support staff, labor unions, and a variety of service 
116.21 	provider groups.

116.22 	Sec. 41. COMMISSIONER AUTHORITY TO REDUCE 2011 CONGREGATE 
116.23 	CARE LOW NEED RATE CUT.
 116.24 	During fiscal years 2013 and 2014, the commissioner shall reduce the 2011 reduction 
116.25 	of rates for congregate living for individuals with lower needs to the extent actions taken 
116.26 	under Minnesota Statutes, section 245A.03, subdivision 7, paragraph (f), produce savings 
116.27 	beyond the amount needed to meet the licensed bed closure savings requirements of 
116.28 	Minnesota Statutes, section 245A.03, subdivision 7, paragraph (e). Each February 1, the 
116.29 	commissioner shall report to the chairs of the legislative committees with jurisdiction over 
116.30 	health and human services finance on any reductions provided under this section. This 
116.31 	section is effective on July 1, 2012, and expires on June 30, 2014.

116.32 	Sec. 42. HOME AND COMMUNITY-BASED SERVICES WAIVERS 
116.33 	AMENDMENT FOR EXCEPTION.
 117.1 	 By September 1, 2012, the commissioner of human services shall submit 
117.2 	amendments to the home and community-based waiver plans consistent with the definition 
117.3 	of home and community-based settings under Minnesota Statutes, section 256B.492, 
117.4 	including a request to allow an exception for those settings that serve persons with 
117.5 	disabilities under a home and community-based service waiver in more than 25 percent 
117.6 	of the units in a building as of January 1, 2012, but otherwise meet the definition under 
117.7 	Minnesota Statutes, section 256B.492.

117.8 	Sec. 43. COMMISSIONER TO SEEK AMENDMENT FOR EXCEPTION 
117.9 	TO CONSUMER-DIRECTED COMMUNITY SUPPORTS BUDGET 
117.10 	METHODOLOGY.
 117.11 	By July 1, 2012, the commissioner shall request an amendment to the home and 
117.12 	community-based services waivers authorized under Minnesota Statutes, sections 
117.13 	256B.092 and 256B.49, to establish an exception to the consumer-directed community 
117.14 	supports budget methodology to provide up to 20 percent more funds for those 
117.15 	participants who have their 21st birthday and graduate from high school during 2013 and 
117.16 	are authorized for more services under consumer-directed community supports prior to 
117.17 	graduation than what they are eligible to receive under the current consumer-directed 
117.18 	community supports budget methodology. The exception is limited to those who can 
117.19 	demonstrate that they will have to leave consumer-directed community supports and use 
117.20 	other waiver services because their need for day or employment supports cannot be met 
117.21 	within the consumer-directed community supports budget limits. The commissioner 
117.22 	shall consult with the stakeholder group authorized under Minnesota Statutes, section 
117.23 	256B.0657, subdivision 11, to implement this provision. The exception process shall be 
117.24 	effective upon federal approval for persons eligible during 2013 and 2014.

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

117.26 	Sec. 44. DIRECTION TO OMBUDSMAN FOR LONG-TERM CARE.
 117.27 	The ombudsman for long-term care shall:
117.28 	(1) research the existence of differential treatment based on source of payment in 
117.29 	assisted living settings;
117.30 	(2) convene stakeholders to provide technical assistance and expertise in studying 
117.31 	and addressing these issues, including but not limited to consumers, health care and 
117.32 	housing providers, advocates representing seniors and younger persons with disabilities or 
117.33 	mental health challenges, county representatives, and representatives of the Departments 
117.34 	of Health and Human Services; and
118.1 	(3) submit a report of findings to the legislature no later than January 31, 2013, 
118.2 	with recommendations for the development of policies and procedures to prevent and 
118.3 	remedy instances of discrimination based on participation in or potential eligibility for 
118.4 	medical assistance.

118.5 	ARTICLE 5
118.6 	MINNESOTA CHILDREN AND FAMILY INVESTMENT PROGRAM

118.7 	Section 1. CITATION.
 118.8 	Sections 2 to 8 may be cited as the "Minnesota Children and Family Investment 
118.9 	Program Act."

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

118.16 	Sec. 3. Minnesota Statutes 2010, section 256J.45, subdivision 2, is amended to read:
118.17 		Subd. 2.General information. (a) The MFIP orientation must consist of a 
118.18 	presentation that informs caregivers of:
118.19 	(1) the necessity to obtain immediate employment;
118.20 	(2) the work incentives under MFIP, including the availability of the federal earned 
118.21 	income tax credit and the Minnesota working family tax credit;
118.22 	(3) the requirement to comply with the employment plan and other requirements 
118.23 	of the employment and training services component of MFIP, including a description 
118.24 	of the range of work and training activities that are allowable under MFIP to meet the 
118.25 	individual needs of participants;
118.26 	(4) the consequences for failing to comply with the employment plan and other 
118.27 	program requirements, and that the county agency may not impose a sanction when failure 
118.28 	to comply is due to the unavailability of child care or other circumstances where the 
118.29 	participant has good cause under subdivision 3;
118.30 	(5) the rights, responsibilities, and obligations of participants;
118.31 	(6) the types and locations of child care services available through the county agency;
118.32 	(7) the availability and the benefits of the early childhood health and developmental 
118.33 	screening under sections 121A.16 to 121A.19; 123B.02, subdivision 16; and 123B.10;
119.1 	(8) the caregiver's eligibility for transition year child care assistance under section 
119.2 	119B.05;
119.3 	(9) the availability of all health care programs, including transitional medical 
119.4 	assistance;
119.5 	(10) the caregiver's option to choose an employment and training provider and 
119.6 	information about each provider, including but not limited to, services offered, program 
119.7 	components, job placement rates, job placement wages, and job retention rates;
119.8 	(11) the caregiver's option to request approval of an education and training plan 
119.9 	according to section 256J.53;
119.10 	(12) the work study programs available under the higher education system; and
119.11 	(13) information about the 60-month time limit exemptions under the family 
119.12 	violence waiver and referral information about shelters and programs for victims of family 
119.13 	violence.; and
119.14 	(14) the availability and benefits of early childhood health and developmental 
119.15 	screening and other early childhood resources and programs.
119.16 	(b) For MFIP caregivers who are exempt from attending the orientation under 
119.17 	subdivision 1, the county agency must provide the information required under paragraph 
119.18 	(a), clause (14), via other means.

119.19 	Sec. 4. Minnesota Statutes 2011 Supplement, section 256J.49, subdivision 13, is 
119.20 	amended to read:
119.21 		Subd. 13.Work activity. (a) "Work activity" means any activity in a participant's 
119.22 	approved employment plan that leads to employment. For purposes of the MFIP program, 
119.23 	this includes activities that meet the definition of work activity under the participation 
119.24 	requirements of TANF. Work activity includes:
119.25 	(1) unsubsidized employment, including work study and paid apprenticeships or 
119.26 	internships;
119.27 	(2) subsidized private sector or public sector employment, including grant diversion 
119.28 	as specified in section 256J.69, on-the-job training as specified in section 256J.66, paid 
119.29 	work experience, and supported work when a wage subsidy is provided;
119.30 	(3) unpaid work experience, including community service, volunteer work, 
119.31 	the community work experience program as specified in section 256J.67, unpaid 
119.32 	apprenticeships or internships, and supported work when a wage subsidy is not provided. 
119.33 	Unpaid work experience is only an option if the participant has been unable to obtain or 
119.34 	maintain paid employment in the competitive labor market, and no paid work experience 
119.35 	programs are available to the participant. Prior to placing a participant in unpaid work, 
120.1 	the county must inform the participant that the participant will be notified if a paid work 
120.2 	experience or supported work position becomes available. Unless a participant consents in 
120.3 	writing to participate in unpaid work experience, the participant's employment plan may 
120.4 	only include unpaid work experience if including the unpaid work experience in the plan 
120.5 	will meet the following criteria:
120.6 	(i) the unpaid work experience will provide the participant specific skills or 
120.7 	experience that cannot be obtained through other work activity options where the 
120.8 	participant resides or is willing to reside; and
120.9 	(ii) the skills or experience gained through the unpaid work experience will result 
120.10 	in higher wages for the participant than the participant could earn without the unpaid 
120.11 	work experience;
120.12 	(4) job search including job readiness assistance, job clubs, job placement, 
120.13 	job-related counseling, and job retention services;
120.14 	(5) job readiness education, including English as a second language (ESL) or 
120.15 	functional work literacy classes as limited by the provisions of section 256J.531, 
120.16 	subdivision 2, general educational development (GED) course work, high school 
120.17 	completion, and adult basic education as limited by the provisions of section 256J.531, 
120.18 	subdivision 1;
120.19 	(6) job skills training directly related to employment, including education and 
120.20 	training that can reasonably be expected to lead to employment, as limited by the 
120.21 	provisions of section 256J.53;
120.22 	(7) providing child care services to a participant who is working in a community 
120.23 	service program;
120.24 	(8) activities included in the employment plan that is developed under section 
120.25 	256J.521, subdivision 3; and
120.26 	(9) preemployment activities including chemical and mental health assessments, 
120.27 	treatment, and services; learning disabilities services; child protective services; family 
120.28 	stabilization services; or other programs designed to enhance employability.; and
120.29 	(10) attending a child's early childhood activities, including developmental 
120.30 	screenings and subsequent referral and follow-up services. MFIP employment and training 
120.31 	providers must coordinate with county social service agencies and health plans to assist 
120.32 	recipients in arranging referrals indicated by screening results.
120.33 	(b) "Work activity" does not include activities done for political purposes as defined 
120.34 	in section 211B.01, subdivision 6.

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

121.6 	Sec. 6. Minnesota Statutes 2010, section 256J.521, subdivision 2, is amended to read:
121.7 		Subd. 2.Employment plan; contents. (a) Based on the assessment under 
121.8 	subdivision 1, the job counselor and the participant must develop an employment plan 
121.9 	that includes participation in activities and hours that meet the requirements of section 
121.10 	256J.55, subdivision 1. The purpose of the employment plan is to identify for each 
121.11 	participant the most direct path to unsubsidized employment and any subsequent steps that 
121.12 	support long-term economic stability. The employment plan should be developed using 
121.13 	the highest level of activity appropriate for the participant. Activities must be chosen from 
121.14 	clauses (1) to (6), which are listed in order of preference. Notwithstanding this order of 
121.15 	preference for activities, priority must be given for activities related to a family violence 
121.16 	waiver when developing the employment plan. The employment plan must also list the 
121.17 	specific steps the participant will take to obtain employment, including steps necessary 
121.18 	for the participant to progress from one level of activity to another, and a timetable for 
121.19 	completion of each step. Levels of activity include:
121.20 	(1) unsubsidized employment;
121.21 	(2) job search;
121.22 	(3) subsidized employment or unpaid work experience;
121.23 	(4) unsubsidized employment and job readiness education or job skills training;
121.24 	(5) unsubsidized employment or unpaid work experience and activities related to 
121.25 	a family violence waiver or preemployment needs; and
121.26 	(6) activities related to a family violence waiver or preemployment needs.
121.27 	(b) Participants who are determined to possess sufficient skills such that the 
121.28 	participant is likely to succeed in obtaining unsubsidized employment must job search at 
121.29 	least 30 hours per week for up to six weeks and accept any offer of suitable employment. 
121.30 	The remaining hours necessary to meet the requirements of section 256J.55, subdivision 
121.31 	1, may be met through participation in other work activities under section 256J.49, 
121.32 	subdivision 13. The participant's employment plan must specify, at a minimum: (1) 
121.33 	whether the job search is supervised or unsupervised; (2) support services that will 
121.34 	be provided; and (3) how frequently the participant must report to the job counselor. 
121.35 	Participants who are unable to find suitable employment after six weeks must meet 
122.1 	with the job counselor to determine whether other activities in paragraph (a) should be 
122.2 	incorporated into the employment plan. Job search activities which are continued after six 
122.3 	weeks must be structured and supervised.
122.4 	(c) Participants who are determined to have barriers to obtaining or maintaining 
122.5 	suitable employment that will not be overcome during six weeks of job search under 
122.6 	paragraph (b) must work with the job counselor to develop an employment plan that 
122.7 	addresses those barriers by incorporating appropriate activities from paragraph (a), clauses 
122.8 	(1) to (6). The employment plan must include enough hours to meet the participation 
122.9 	requirements in section 256J.55, subdivision 1, unless a compelling reason to require 
122.10 	fewer hours is noted in the participant's file.
122.11 	(d) The job counselor and the participant must sign the employment plan to indicate 
122.12 	agreement on the contents.
122.13 	(e) Except as provided under paragraph (f), failure to develop or comply with 
122.14 	activities in the plan, or voluntarily quitting suitable employment without good cause, will 
122.15 	result in the imposition of a sanction under section 256J.46.
122.16 	(f) When a participant fails to meet the agreed-upon hours of participation in paid 
122.17 	employment because the participant is not eligible for holiday pay and the participant's 
122.18 	place of employment is closed for a holiday, the job counselor shall not impose a sanction 
122.19 	or increase the hours of participation in any other activity, including paid employment, to 
122.20 	offset the hours that were missed due to the holiday.
122.21 	(g) Employment plans must be reviewed at least every three months to determine 
122.22 	whether activities and hourly requirements should be revised. At the time of the 
122.23 	employment plan review, the job counselor must provide information to participants 
122.24 	regarding early childhood development and resources for families. The job counselor 
122.25 	is encouraged to allow participants who are participating in at least 20 hours of work 
122.26 	activities to also participate in education and training activities in order to meet the federal 
122.27 	hourly participation rates.

122.28 	Sec. 7. DIRECTION TO COMMISSIONER.
 122.29 	The commissioner of human services may phase in the change in terminology from 
122.30 	"Minnesota Family Investment Program" to "Minnesota Children and Family Investment 
122.31 	Program" as the commissioner exhausts supplies of printed materials.

122.32 	Sec. 8. REVISOR INSTRUCTION.
 123.1 	In Minnesota Statutes and Minnesota Rules, the revisor of statutes shall substitute 
123.2 	the terms "Minnesota Children and Family Investment Program" for "Minnesota Family 
123.3 	Investment Program" and "MCFIP" for "MFIP" wherever they appear.

123.4 	ARTICLE 6
123.5 	MISCELLANEOUS

123.6 	Section 1. Minnesota Statutes 2010, section 245.697, subdivision 1, is amended to read:
123.7 		Subdivision 1.Creation. (a) A State Advisory Council on Mental Health is created. 
123.8 	The council must have 30 31 members appointed by the governor in accordance with 
123.9 	federal requirements. In making the appointments, the governor shall consider appropriate 
123.10 	representation of communities of color. The council must be composed of:
123.11 	(1) the assistant commissioner of mental health for the department of human services;
123.12 	(2) a representative of the Department of Human Services responsible for the 
123.13 	medical assistance program;
123.14 	(3) one member of each of the four five core mental health professional disciplines 
123.15 	(psychiatry, psychology, social work, nursing, and marriage and family therapy);
123.16 	(4) one representative from each of the following advocacy groups: Mental Health 
123.17 	Association of Minnesota, NAMI-MN, Mental Health Consumer/Survivor Network of 
123.18 	Minnesota, and Minnesota Disability Law Center;
123.19 	(5) providers of mental health services;
123.20 	(6) consumers of mental health services;
123.21 	(7) family members of persons with mental illnesses;
123.22 	(8) legislators;
123.23 	(9) social service agency directors;
123.24 	(10) county commissioners; and
123.25 	(11) other members reflecting a broad range of community interests, including 
123.26 	family physicians, or members as the United States Secretary of Health and Human 
123.27 	Services may prescribe by regulation or as may be selected by the governor.
123.28 	(b) The council shall select a chair. Terms, compensation, and removal of members 
123.29 	and filling of vacancies are governed by section 15.059. Notwithstanding provisions 
123.30 	of section 15.059, the council and its subcommittee on children's mental health do not 
123.31 	expire. The commissioner of human services shall provide staff support and supplies 
123.32 	to the council.

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

124.10 	Sec. 3. Minnesota Statutes 2010, section 256B.0943, subdivision 9, is amended to read:
124.11 		Subd. 9.Service delivery criteria. (a) In delivering services under this section, a 
124.12 	certified provider entity must ensure that:
124.13 	(1) each individual provider's caseload size permits the provider to deliver services 
124.14 	to both clients with severe, complex needs and clients with less intensive needs. The 
124.15 	provider's caseload size should reasonably enable the provider to play an active role in 
124.16 	service planning, monitoring, and delivering services to meet the client's and client's 
124.17 	family's needs, as specified in each client's individual treatment plan;
124.18 	(2) site-based programs, including day treatment and preschool programs, provide 
124.19 	staffing and facilities to ensure the client's health, safety, and protection of rights, and that 
124.20 	the programs are able to implement each client's individual treatment plan;
124.21 	(3) a day treatment program is provided to a group of clients by a multidisciplinary 
124.22 	team under the clinical supervision of a mental health professional. The day treatment 
124.23 	program must be provided in and by: (i) an outpatient hospital accredited by the Joint 
124.24 	Commission on Accreditation of Health Organizations and licensed under sections 144.50 
124.25 	to 144.55; (ii) a community mental health center under section 245.62; or (iii) an entity 
124.26 	that is under contract with the county board certified under subdivision 4 to operate a 
124.27 	program that meets the requirements of section 245.4712, subdivision 2, or 245.4884, 
124.28 	subdivision 2, and Minnesota Rules, parts 9505.0170 to 9505.0475. The day treatment 
124.29 	program must stabilize the client's mental health status while developing and improving 
124.30 	the client's independent living and socialization skills. The goal of the day treatment 
124.31 	program must be to reduce or relieve the effects of mental illness and provide training to 
124.32 	enable the client to live in the community. The program must be available at least one day 
124.33 	a week for a two-hour time block. The two-hour time block must include at least one hour 
124.34 	of individual or group psychotherapy. The remainder of the structured treatment program 
124.35 	may include individual or group psychotherapy, and individual or group skills training, if 
125.1 	included in the client's individual treatment plan. Day treatment programs are not part of 
125.2 	inpatient or residential treatment services. A day treatment program may provide fewer 
125.3 	than the minimally required hours for a particular child during a billing period in which 
125.4 	the child is transitioning into, or out of, the program; and
125.5 	(4) a therapeutic preschool program is a structured treatment program offered 
125.6 	to a child who is at least 33 months old, but who has not yet reached the first day of 
125.7 	kindergarten, by a preschool multidisciplinary team in a day program licensed under 
125.8 	Minnesota Rules, parts 9503.0005 to 9503.0175. The program must be available two 
125.9 	hours per day, five days per week, and 12 months of each calendar year. The structured 
125.10 	treatment program may include individual or group psychotherapy and individual or 
125.11 	group skills training, if included in the client's individual treatment plan. A therapeutic 
125.12 	preschool program may provide fewer than the minimally required hours for a particular 
125.13 	child during a billing period in which the child is transitioning into, or out of, the program.
125.14 	(b) A provider entity must deliver the service components of children's therapeutic 
125.15 	services and supports in compliance with the following requirements:
125.16 	(1) individual, family, and group psychotherapy must be delivered as specified in 
125.17 	Minnesota Rules, part 9505.0323;
125.18 	(2) individual, family, or group skills training must be provided by a mental health 
125.19 	professional or a mental health practitioner who has a consulting relationship with a 
125.20 	mental health professional who accepts full professional responsibility for the training;
125.21 	(3) crisis assistance must be time-limited and designed to resolve or stabilize crisis 
125.22 	through arrangements for direct intervention and support services to the child and the 
125.23 	child's family. Crisis assistance must utilize resources designed to address abrupt or 
125.24 	substantial changes in the functioning of the child or the child's family as evidenced by 
125.25 	a sudden change in behavior with negative consequences for well being, a loss of usual 
125.26 	coping mechanisms, or the presentation of danger to self or others;
125.27 	(4) mental health behavioral aide services must be medically necessary treatment 
125.28 	services, identified in the child's individual treatment plan and individual behavior plan, 
125.29 	which are performed minimally by a paraprofessional qualified according to subdivision 
125.30 	7, paragraph (b), clause (3), and which are designed to improve the functioning of the 
125.31 	child in the progressive use of developmentally appropriate psychosocial skills. Activities 
125.32 	involve working directly with the child, child-peer groupings, or child-family groupings 
125.33 	to practice, repeat, reintroduce, and master the skills defined in subdivision 1, paragraph 
125.34 	(p), as previously taught by a mental health professional or mental health practitioner 
125.35 	including:
126.1 	(i) providing cues or prompts in skill-building peer-to-peer or parent-child 
126.2 	interactions so that the child progressively recognizes and responds to the cues 
126.3 	independently;
126.4 	(ii) performing as a practice partner or role-play partner;
126.5 	(iii) reinforcing the child's accomplishments;
126.6 	(iv) generalizing skill-building activities in the child's multiple natural settings;
126.7 	(v) assigning further practice activities; and
126.8 	(vi) intervening as necessary to redirect the child's target behavior and to de-escalate 
126.9 	behavior that puts the child or other person at risk of injury.
126.10 	A mental health behavioral aide must document the delivery of services in written 
126.11 	progress notes. The mental health behavioral aide must implement treatment strategies 
126.12 	in the individual treatment plan and the individual behavior plan. The mental health 
126.13 	behavioral aide must document the delivery of services in written progress notes. Progress 
126.14 	notes must reflect implementation of the treatment strategies, as performed by the mental 
126.15 	health behavioral aide and the child's responses to the treatment strategies; and
126.16 	(5) direction of a mental health behavioral aide must include the following:
126.17 	(i) a clinical supervision plan approved by the responsible mental health professional;
126.18 	(ii) ongoing on-site observation by a mental health professional or mental health 
126.19 	practitioner for at least a total of one hour during every 40 hours of service provided 
126.20 	to a child; and
126.21 	(iii) immediate accessibility of the mental health professional or mental health 
126.22 	practitioner to the mental health behavioral aide during service provision.

126.23 	Sec. 4. Minnesota Statutes 2011 Supplement, section 256M.40, subdivision 1, is 
126.24 	amended to read:
126.25 		Subdivision 1.Formula. The commissioner shall allocate state funds appropriated 
126.26 	under this chapter to each county board on a calendar year basis in an amount determined 
126.27 	according to the formula in paragraphs (a) to (e) (f).
126.28 	(a) For calendar years 2011 and, 2012,  and 2013, the commissioner shall allocate 
126.29 	available funds to each county in proportion to that county's share in calendar year 2010.
126.30 	(b) For calendar year 2013 2014, the commissioner shall allocate available funds to 
126.31 	each county as follows:
126.32 	(1) 75 80 percent must be distributed on the basis of the county share in calendar 
126.33 	year 2012 2013;
126.34 	(2) five percent must be distributed on the basis of the number of persons residing in 
126.35 	the county as determined by the most recent data of the state demographer;
127.1 	(3) ten percent must be distributed on the basis of the number of vulnerable children 
127.2 	that are subjects of reports under chapter 260C and sections 626.556 and 626.5561, and in 
127.3 	the county as determined by the most recent data of the commissioner; and
127.4 	(4) ten percent must be distributed on the basis of the number of vulnerable adults 
127.5 	that are subjects of reports under section 626.557 in the county as determined by the most 
127.6 	recent data of the commissioner.
127.7 	(2) 20 percent must be distributed as follows:
127.8 	(i) 25 percent must be allocated to cover infrastructure costs for grant implementation 
127.9 	which includes a guaranteed floor and an amount based on the county's population size 
127.10 	as determined by the commissioner; and
127.11 	(ii) 75 percent must be allocated based on the need for vulnerable children and 
127.12 	adult services as follows:
127.13 	(A) 70 percent shall be allocated to counties based on the county's average three-year 
127.14 	count of vulnerable children who are subjects of family assessments or subjects of 
127.15 	accepted reports under sections 626.556 and 626.5561 per 1,000 county child population 
127.16 	as determined by the most recent data of the commissioner; and
127.17 	(B) 30 percent shall be allocated to counties based on the county's average three-year 
127.18 	count of vulnerable adults who are subjects of reports accepted for county investigation or 
127.19 	emergency protective services under section 626.557 per 1,000 county adult population 
127.20 	determined by the most recent data of the commissioner.
127.21 	(c) For calendar year 2014 2015, the commissioner shall allocate available funds to 
127.22 	each county as follows:
127.23 	(1) 50 60 percent must be distributed on the basis of the county share in calendar 
127.24 	year 2012 2013; and
127.25 	(2) Ten percent must be distributed on the basis of the number of persons residing in 
127.26 	the county as determined by the most recent data of the state demographer;
127.27 	(3) 20 percent must be distributed on the basis of the number of vulnerable children 
127.28 	that are subjects of reports under chapter 260C and sections 626.556 and 626.5561, in the 
127.29 	county as determined by the most recent data of the commissioner; and
127.30 	(4) 20 percent must be distributed on the basis of the number of vulnerable adults 
127.31 	that are subjects of reports under section 626.557 in the county as determined by the most 
127.32 	recent data of the commissioner.
127.33 	(2) 40 percent must be distributed as follows:
127.34 	(i) 25 percent must be allocated to cover infrastructure costs for grant implementation 
127.35 	which includes a guaranteed floor and an amount based on the county's population size 
127.36 	as determined by the commissioner; and
128.1 	(ii) 75 percent must be allocated based on the need for vulnerable children and 
128.2 	adult services as follows:
128.3 	(A) 70 percent shall be allocated to counties based on the county's average three-year 
128.4 	count of vulnerable children who are subjects of family assessments or subjects of 
128.5 	accepted reports under sections 626.556 and 626.5561 per 1,000 county child population 
128.6 	as determined by the most recent data of the commissioner; and
128.7 	(B) 30 percent shall be allocated to counties based on the county's average three-year 
128.8 	count of vulnerable adults who are subjects of reports accepted for county investigation or 
128.9 	emergency protective services under section 626.557 per 1,000 county adult population 
128.10 	determined by the most recent data of the commissioner.
128.11 	(d) For calendar year 2015 2016, the commissioner shall allocate available funds to 
128.12 	each county as follows:
128.13 	(1) 25 40 percent must be distributed on the basis of the county share in calendar 
128.14 	year 2012 2013; and
128.15 	(2) 15 percent must be distributed on the basis of the number of persons residing in 
128.16 	the county as determined by the most recent data of the state demographer;
128.17 	(3) 30 percent must be distributed on the basis of the number of vulnerable children 
128.18 	that are subjects of reports under chapter 260C and sections 626.556 and 626.5561, in the 
128.19 	county as determined by the most recent data of the commissioner; and
128.20 	(4) 30 percent must be distributed on the basis of the number of vulnerable adults 
128.21 	that are subjects of reports under section 626.557 in the county as determined by the most 
128.22 	recent data of the commissioner.
128.23 	(2) 60 percent must be distributed as follows:
128.24 	(i) 25 percent must be allocated to cover infrastructure costs for grant implementation 
128.25 	which includes a guaranteed floor and an amount based on the county's population size 
128.26 	as determined by the commissioner; and
128.27 	(ii) 75 percent must be allocated based on the need for vulnerable children and 
128.28 	adult services as follows:
128.29 	(A) 70 percent shall be allocated to counties based on the county's average three-year 
128.30 	count of vulnerable children who are subjects of family assessments or subjects of 
128.31 	accepted reports under sections 626.556 and 626.5561 per 1,000 county child population 
128.32 	as determined by the most recent data of the commissioner; and
128.33 	(B) 30 percent shall be allocated to counties based on the county's average three-year 
128.34 	count of vulnerable adults who are subjects of reports accepted for county investigation or 
128.35 	emergency protective services under section 626.557 per 1,000 county adult population 
128.36 	determined by the most recent data of the commissioner.
129.1 	(e) For calendar year 2016 and each calendar year thereafter 2017, the commissioner 
129.2 	shall allocate available funds to each county as follows:
129.3 	(1) 20 percent must be distributed on the basis of the number of persons residing 
129.4 	in the county as determined by the most recent data of the state demographer county 
129.5 	share in calendar year 2013; and
129.6 	(2) 40 percent must be distributed on the basis of the number of vulnerable children 
129.7 	that are subjects of reports under chapter 260C and sections 626.556 and 626.5561, in the 
129.8 	county as determined by the most recent data of the commissioner; and
129.9 	(3) 40 percent must be distributed on the basis of the number of vulnerable adults 
129.10 	that are subjects of reports under section 626.557 in the county as determined by the most 
129.11 	recent data of the commissioner.
129.12 	(2) 80 percent must be distributed as follows:
129.13 	(i) 25 percent must be allocated to cover infrastructure costs for grant implementation 
129.14 	which includes a guaranteed floor and an amount based on the county's population size 
129.15 	as determined by the commissioner; and
129.16 	(ii) 75 percent must be allocated based on the need for vulnerable children and 
129.17 	adult services as follows:
129.18 	(A) 70 percent shall be allocated to counties based on the county's average three-year 
129.19 	count of vulnerable children who are subjects of family assessments or subjects of 
129.20 	accepted reports under sections 626.556 and 626.5561 per 1,000 county child population 
129.21 	as determined by the most recent data of the commissioner; and
129.22 	(B) 30 percent shall be allocated to counties based on the county's average three-year 
129.23 	count of vulnerable adults who are subjects of reports accepted for county investigation or 
129.24 	emergency protective services under section 626.557 per 1,000 county adult population 
129.25 	determined by the most recent data of the commissioner.
129.26 	(f) For calendar year 2018 and each calendar year thereafter, the commissioner shall 
129.27 	allocate available funds to each county as follows:
129.28 	(1) 25 percent must be allocated to cover infrastructure costs for grant 
129.29 	implementation which includes a guaranteed floor and an amount based on the county's 
129.30 	population size as determined by the commissioner; and
129.31 	(2) 75 percent must be allocated based on the need for vulnerable children and 
129.32 	adult services as follows:
129.33 	(i) 70 percent shall be allocated to counties based on the county's average three-year 
129.34 	count of vulnerable children that are subject of family assessments or subjects of accepted 
129.35 	reports under sections 626.556 and 626.5561 per 1,000 county child population as 
129.36 	determined by the most recent data of the commissioner; and
130.1 	(ii) 30 percent shall be allocated to counties based on the county's average three-year 
130.2 	count of vulnerable adults that are subjects of reports accepted for county investigation or 
130.3 	emergency protective services under section 626.557 per 1,000 county adult population 
130.4 	determined by the most recent data of the commissioner.

130.5 	Sec. 5. Minnesota Statutes 2010, section 462A.29, is amended to read:
130.6 	462A.29 INTERAGENCY COORDINATION ON HOMELESSNESS.
130.7 	(a) The agency shall coordinate services and activities of all state agencies relating 
130.8 	to homelessness. The agency shall coordinate an investigation and review of the current 
130.9 	system of service delivery to the homeless. The agency may request assistance from other 
130.10 	agencies of state government as needed for the execution of the responsibilities under this 
130.11 	section and the other agencies shall furnish the assistance upon request.
130.12 	(b) The Interagency Council on Homelessness established to assist with the 
130.13 	execution of the duties of this section shall give priority to improving the coordination 
130.14 	of services and activities that reduce the number of children and military veterans who 
130.15 	experience homelessness and improve the economic, health, social, and education 
130.16 	outcomes for children and military veterans who experience homelessness.

130.17 	Sec. 6. Minnesota Statutes 2010, section 518A.40, subdivision 4, is amended to read:
130.18 		Subd. 4.Change in child care. (a) When a court order provides for child care 
130.19 	expenses, and child care support is not assigned under section 256.741, the public 
130.20 	authority, if the public authority provides child support enforcement services, must may
130.21 	suspend collecting the amount allocated for child care expenses when:
130.22 	(1) either party informs the public authority that no child care costs are being 
130.23 	incurred; and:
130.24 	(2) (1) the public authority verifies the accuracy of the information with the obligee.; 
130.25 	or
130.26 	(2) the obligee fails to respond within 30 days of the date of a written request 
130.27 	from the public authority for information regarding child care costs. A written or oral 
130.28 	response from the obligee that child care costs are being incurred is sufficient for the 
130.29 	public authority to continue collecting child care expenses.
130.30 	The suspension is effective as of the first day of the month following the date that the 
130.31 	public authority received the verification either verified the information with the obligee 
130.32 	or the obligee failed to respond. The public authority will resume collecting child care 
130.33 	expenses when either party provides information that child care costs have resumed are 
130.34 	incurred, or when a child care support assignment takes effect under section 256.741, 
131.1 	subdivision 4. The resumption is effective as of the first day of the month after the date 
131.2 	that the public authority received the information.
131.3 	(b) If the parties provide conflicting information to the public authority regarding 
131.4 	whether child care expenses are being incurred, or if the public authority is unable to 
131.5 	verify with the obligee that no child care costs are being incurred, the public authority will 
131.6 	continue or resume collecting child care expenses. Either party, by motion to the court, 
131.7 	may challenge the suspension, continuation, or resumption of the collection of child care 
131.8 	expenses under this subdivision. If the public authority suspends collection activities 
131.9 	for the amount allocated for child care expenses, all other provisions of the court order 
131.10 	remain in effect.
131.11 	(c) In cases where there is a substantial increase or decrease in child care expenses, 
131.12 	the parties may modify the order under section 518A.39.

131.13 	Sec. 7. Laws 2011, First Special Session chapter 9, article 9, section 18, is amended to 
131.14 	read:
131.15 	Sec. 18. WHITE EARTH BAND OF OJIBWE HUMAN SERVICES 
131.16 	PROJECT.
 131.17 	(a) The commissioner of human services, in consultation with the White Earth Band 
131.18 	of Ojibwe, shall transfer legal responsibility to the tribe for providing human services to 
131.19 	tribal members and their families who reside on or off the reservation in Mahnomen 
131.20 	County. The transfer shall include:
131.21 	(1) financing, including federal and state funds, grants, and foundation funds; and
131.22 	(2) services to eligible tribal members and families defined as it applies to state 
131.23 	programs being transferred to the tribe.
131.24 	(b) The determination as to which programs will be transferred to the tribe and 
131.25 	the timing of the transfer of the programs shall be made by a consensus decision of the 
131.26 	governing body of the tribe and the commissioner. The commissioner shall waive existing 
131.27 	rules and seek all federal approvals and waivers as needed to carry out the transfer.
131.28 	(c) When the commissioner approves transfer of programs and the tribe assumes 
131.29 	responsibility under this section, Mahnomen County is relieved of responsibility for 
131.30 	providing program services to tribal members and their families who live on or off the 
131.31 	reservation while the tribal project is in effect and funded, except that a family member 
131.32 	who is not a White Earth member may choose to receive services through the tribe or the 
131.33 	county. The commissioner shall have authority to redirect funds provided to Mahnomen 
131.34 	County for these services, including administrative expenses, to the White Earth Band 
131.35 	of Ojibwe Indians.
132.1 	(d) Upon the successful transfer of legal responsibility for providing human services 
132.2 	for tribal members and their families who reside on and off the reservation in Mahnomen 
132.3 	County, the commissioner and the White Earth Band of Ojibwe shall develop a plan to 
132.4 	transfer legal responsibility for providing human services for tribal members and their 
132.5 	families who reside on or off reservation in Clearwater and Becker Counties.
132.6 	(e) No later than January 15, 2012, the commissioner shall submit a written 
132.7 	report detailing the transfer progress to the chairs and ranking minority members of the 
132.8 	legislative committees with jurisdiction over health and human services. If legislation is 
132.9 	needed to fully complete the transfer of legal responsibility for providing human services, 
132.10 	the commissioner shall submit proposed legislation along with the written report.
132.11 	(f) Upon receipt of 100 percent match for health care costs from the Indian Health 
132.12 	Service, the first $500,000 of savings to the state in tribal health care costs shall be 
132.13 	distributed to the White Earth Band of Ojibwe to offset the band's cost of implementing 
132.14 	the human services project. The remainder of the state savings shall be distributed to the 
132.15 	White Earth Band of Ojibwe to supplement services to off-reservation tribal members.

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

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

133.3 	Sec. 10. CHEMICAL HEALTH NAVIGATOR PROGRAM.
 133.4 	(a) The commissioner of human services, in partnership with the counties, tribes, 
133.5 	and stakeholders, shall develop a community-based integrated model of care to improve 
133.6 	the effectiveness and efficiency of the service continuum for chemically dependent 
133.7 	individuals. The plan shall identify methods to reduce duplication of efforts, promote 
133.8 	scientifically supported practices, and improve efficiency. This plan shall consider the 
133.9 	potential for geographically or demographically disparate impact on individuals who need 
133.10 	chemical dependency services.
133.11 	(b) The commissioner shall provide the chairs and ranking minority members of the 
133.12 	legislative committees with jurisdiction over health and human services a report detailing 
133.13 	necessary statutory and rule changes and a proposed pilot project to implement the plan no 
133.14 	later than March 15, 2013.

133.15 	Sec. 11. BIENNIAL BUDGET REQUEST; UNIVERSITY OF MINNESOTA.
 133.16 	Beginning in 2013, as part of the biennial budget request submitted to the Office 
133.17 	of Management and Budget, the Board of Regents of the University of Minnesota must 
133.18 	include a request for funding for an investment in rural primary care training to be 
133.19 	delivered by family practice residence programs to prepare doctors for the practice of 
133.20 	primary care medicine in rural areas of the state. The funding request must provide for 
133.21 	ongoing support of rural primary care training through the University of Minnesota's 
133.22 	general operation and maintenance funding or through dedicated health science funding.

133.23 	Sec. 12. RELEASE OF MEDICAL ASSISTANCE LIEN.
 133.24 	Notwithstanding Minnesota Statutes, section 514.981, the commissioner of human 
133.25 	services shall release and discharge the medical assistance lien in full, pursuant to 
133.26 	Minnesota Statutes, section 514.981, subdivision 5, for any person who:
133.27 	(1) purchased a home in St. Louis County that was subject to a medical assistance 
133.28 	lien; 
133.29 	(2) hired Scenic Title and Abstract, Inc. in Duluth to handle the closing on the home; 
133.30 	(3) satisfied the purchase price of the home by securing a mortgage; and 
133.31 	(4) obtained a warranty deed for the home that was signed and notarized on 
133.32 	December 3, 2007, and recorded in St. Louis County on December 28, 2007.

134.1 	ARTICLE 7
134.2 	HEALTH AND HUMAN SERVICES APPROPRIATIONS

134.3	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
134.4 	The amounts shown in this section summarize direct appropriations, by fund, made 
134.5 	in this article.

134.6			2012
		2013
		Total
	
134.7	General
	$
	 301,000
	$
	(301,000)
	$
	-0-
	
134.8	Federal TANF
		-0-
		 3,996,000
		 3,996,000
	
134.9134.10
	State Government Special 
Revenue
		-0-
		-0-
		-0-
	
134.11	Total
	$
	 301,000
	$
	 3,695,000
	$
	3,996,000

134.12	Sec. 2. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
134.13 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
134.14 	in parentheses, subtracted from the appropriations in Laws 2011, First Special Session 
134.15 	chapter 9, article 10, to the agencies and for the purposes specified in this article. The 
134.16 	appropriations are from the general fund or other named fund and are available for the 
134.17 	fiscal years indicated for each purpose. The figures "2012" and "2013" used in this 
134.18 	article mean that the addition to or subtraction from the appropriation listed under them 
134.19 	is available for the fiscal year ending June 30, 2012, or June 30, 2013, respectively. 
134.20 	Supplemental appropriations and reductions to appropriations for the fiscal year ending 
134.21 	June 30, 2012, are effective the day following final enactment unless a different effective 
134.22 	date is explicit.

134.23				APPROPRIATIONS
	
134.24				Available for the Year
	
134.25				Ending June 30
	
134.26					2012
		2013

134.27
134.28	Sec. 3. COMMISSIONER OF HUMAN 
SERVICES

134.29	Subdivision 1.Total Appropriation
 	$
	 301,000
	$
	 3,484,000

134.30	Appropriations by Fund
	
134.31		2012
	2013
	
134.32	General
	301,000
	(512,000)
	
134.33	Federal TANF
	-0-
	3,996,000

134.34	Subd. 2.Central Office Operations

135.1	Appropriations by Fund
	
135.2	General
	-0-
	 1,049,000
	
135.3	Federal TANF
	-0-
	81,000
	
135.4 	Return On Taxpayer Investment 
135.5 	Implementation Study. $64,000 is 
135.6 	appropriated in fiscal year 2013 from the 
135.7 	general fund to the commissioner of human 
135.8 	services for a grant to the commissioner 
135.9 	of management and budget to develop 
135.10 	recommendations for implementing a 
135.11 	return on taxpayer investment (ROTI) 
135.12 	methodology and practice related to 
135.13 	human services and corrections programs 
135.14 	administered and funded by state and county 
135.15 	government. The scope of the study shall 
135.16 	include assessments of ROTI initiatives 
135.17 	in other states, design implications for 
135.18 	Minnesota, and identification of one or 
135.19 	more Minnesota institutions of higher 
135.20 	education capable of providing rigorous 
135.21 	and consistent nonpartisan institutional 
135.22 	support for ROTI. The commissioner 
135.23 	shall consult with representatives of other 
135.24 	state agencies, counties, legislative staff, 
135.25 	Minnesota institutions of higher education, 
135.26 	and other stakeholders in developing 
135.27 	recommendations. The commissioner shall 
135.28 	report findings and recommendations to the 
135.29 	governor and legislature by November 30, 
135.30 	2012. This appropriation is added to the base.
135.31 	Minnesota Specialty Health Services - 
135.32 	Willmar. $549,000 in fiscal year 2012 
135.33 	and $2,713,000 in fiscal year 2013 is 
135.34 	appropriated from the account established 
135.35 	under Minnesota Statutes, section 246.18, 
135.36 	subdivision 8, for continued operation of 
136.1 	the Minnesota Specialty Health Services - 
136.2 	Willmar. These appropriations are onetime. 
136.3 	Closure of the facility shall not occur prior 
136.4 	to June 30, 2013.

136.5	Subd. 3.Forecasted Programs

136.6	Appropriations by Fund
	
136.7	General
	301,000
	(1,821,000)
	
136.8	Federal TANF
	-0-
	-0-

136.9	(a) Group Residential Housing Grants
					
136.10 	Managing Residential Settings. If 
136.11 	the commissioner's efforts to implement 
136.12 	Minnesota Statutes, section 256B.492, results 
136.13 	in general fund savings as compared to base 
136.14 	level costs in the February 2012 Department 
136.15 	of Management and Budget forecast of 
136.16 	revenues and expenditures, the savings 
136.17 	shall be applied to reduce the reductions 
136.18 	to congregate care rates for low-needs 
136.19 	individuals specified in Laws 2011, First 
136.20 	Special Session chapter 9, effective July 1, 
136.21 	2013.

136.22	(b) Medical Assistance Grants
					
136.23 	PCA Relative Care Payment Recovery.
136.24 	Notwithstanding any law to the contrary, and 
136.25 	if, at the conclusion of the HealthStar Home 
136.26 	Health, Inc et al v. Commissioner of Human 
136.27 	Services litigation, the PCA relative rate 
136.28 	reduction under Minnesota Statutes, section 
136.29 	256B.0659, subdivision 11, paragraph (c), 
136.30 	is upheld, the commissioner is prohibited 
136.31 	from recovering the difference between the 
136.32 	100 percent rate paid to providers and the 
136.33 	80 percent rate, during the period of the 
136.34 	temporary injunction issued on October 26, 
136.35 	2011. This section does not prohibit the 
137.1 	commissioner from recovering any other 
137.2 	overpayments from providers.
137.3 	Long-Term Care Realignment Waiver 
137.4 	Conformity. Notwithstanding Minnesota 
137.5 	Statutes, section 256B.0916, subdivision 14, 
137.6 	and upon federal approval of the long-term 
137.7 	care realignment waiver application, 
137.8 	essential community support grants must be 
137.9 	made available in a manner that is consistent 
137.10 	with the state's long-term care realignment 
137.11 	waiver application submitted on February 
137.12 	13, 2012. The commissioner is authorized 
137.13 	to use increased federal matching funds 
137.14 	resulting from approval of the long-term care 
137.15 	realignment waiver as necessary to meet 
137.16 	the fiscal year 2013 demand for essential 
137.17 	community support grants administered in a 
137.18 	manner that is consistent with the terms and 
137.19 	conditions of the long-term care realignment 
137.20 	waiver, and that amount of federal funds is 
137.21 	appropriated to the commissioner for this 
137.22 	purpose.
137.23 	Managing Corporate Foster Care. The 
137.24 	commissioner of human services shall 
137.25 	manage foster care beds under Minnesota 
137.26 	Statutes, section 245A.03, subdivision 7, 
137.27 	in order to reduce costs by $4,149,000 in 
137.28 	fiscal year 2013 as compared to base level 
137.29 	costs in the February 2012 Department of 
137.30 	Management and Budget forecast of revenues 
137.31 	and expenditures. If the department's efforts 
137.32 	to implement this provision results in savings 
137.33 	greater than $4,149,000 in fiscal year 2014, 
137.34 	the additional savings shall be applied to 
137.35 	reduce the reductions to congregate care 
137.36 	rates for low-needs individuals specified in 
138.1 	Laws 2011, First Special Session chapter 9, 
138.2 	effective July 1, 2013.
138.3 	Continuing Care Provider Payment 
138.4 	Delay. The commissioner of human services 
138.5 	shall delay the last payment or payments 
138.6 	in fiscal year 2013 to providers listed in 
138.7 	Minnesota Statutes 2011 Supplement, 
138.8 	section 256B.5012, subdivision 13, and 
138.9 	Laws 2011, First Special Session chapter 
138.10 	9, article 7, section 54, paragraph (b), 
138.11 	by up to $22,854,000. In calculating the 
138.12 	actual payment amounts to be delayed, the 
138.13 	commissioner must reduce the $22,854,000 
138.14 	figure by any cash basis state share 
138.15 	savings to be realized in fiscal year 2013 
138.16 	from implementing the long-term care 
138.17 	realignment waiver before July 1, 2013. 
138.18 	The commissioner shall make the delayed 
138.19 	payments in July 2013. Notwithstanding 
138.20 	any contrary provision in this article, this 
138.21 	provision expires on August 1, 2013.
138.22 	Contingent Managed Care Provider 
138.23 	Payment Increases. Any money received 
138.24 	by the state as a result of the cap on 
138.25 	earnings in the 2011 contract or 2011 
138.26 	contract amendments for services provided 
138.27 	under Minnesota Statutes, sections 
138.28 	256B.69 and 256L.12, shall be used to 
138.29 	retroactively increase medical assistance 
138.30 	and MinnesotaCare capitation payments to 
138.31 	managed care plans for calendar year 2011. 
138.32 	The commissioner of human services shall 
138.33 	require managed care plans to use the entire 
138.34 	amount of any increase in capitation rates 
138.35 	provided under this provision to retroactively 
138.36 	increase calendar year 2011 payment rates for 
139.1 	health care providers employed by or under 
139.2 	contract with the plan, including nursing 
139.3 	facilities that provide services to emergency 
139.4 	medical assistance recipients, but excluding 
139.5 	payments to hospitals and other institutional 
139.6 	providers for facility, administrative, and 
139.7 	other operating costs not related to direct 
139.8 	patient care. Increased payments must be 
139.9 	distributed in proportion to each provider's 
139.10 	share of total plan payments received for 
139.11 	services provided to medical assistance and 
139.12 	MinnesotaCare enrollees. Any increase in 
139.13 	provider payment rates under this provision 
139.14 	is onetime and shall not increase base 
139.15 	provider payment rates.

139.16	Subd. 4.Grant Programs

139.17	Appropriations by Fund
	
139.18	General
	-0-
	260,000
	
139.19	Federal TANF
	-0-
	 2,900,000

139.20	(a) Support Services Grants
					
139.21 	Northern Connections. $300,000 is 
139.22 	appropriated from the TANF fund in fiscal 
139.23 	year 2013 to the commissioner of human 
139.24 	services for a grant to Northern Connections 
139.25 	in Perham for a workforce program that 
139.26 	provides one-stop supportive services 
139.27 	to individuals as they transition into the 
139.28 	workforce. This appropriation must be used 
139.29 	for families with incomes below 200 percent 
139.30 	of the federal poverty guidelines and with 
139.31 	minor children in the household. This is a 
139.32 	onetime appropriation and is available until 
139.33 	expended.

139.34	(b) Children and Economic Support Grants
					
140.1 	Long-Term Homeless Supportive Services.
140.2 	$500,000 is appropriated in fiscal year 2013 
140.3 	from the TANF fund for long-term homeless 
140.4 	supportive services for low-income families 
140.5 	under Minnesota Statutes, section 256K.26. 
140.6 	This is a onetime appropriation and is not 
140.7 	added to the base.
140.8 	Healthy Community Initiatives. $300,000 
140.9 	in fiscal year 2013 is appropriated from the 
140.10 	TANF fund to the commissioner of human 
140.11 	services for contracting with the Search 
140.12 	Institute to promote healthy community 
140.13 	initiatives. The commissioner may expend 
140.14 	up to five percent of the appropriation 
140.15 	to provide for the program evaluation. 
140.16 	This appropriation must be used to serve 
140.17 	families with incomes below 200 percent 
140.18 	of the federal poverty guidelines and minor 
140.19 	children in the household. This is a onetime 
140.20 	appropriation and is available until expended.
140.21 	Circles of Support. $400,000 in fiscal year 
140.22 	2013 is appropriated from the TANF fund 
140.23 	to the commissioner of human services for 
140.24 	the purpose of providing grants to three 
140.25 	community action agencies for circles of 
140.26 	support initiatives. This appropriation must 
140.27 	be used to serve families with incomes below 
140.28 	200 percent of the federal poverty guidelines 
140.29 	and minor children in the household. This 
140.30 	is a onetime appropriation and is available 
140.31 	until expended.
140.32 	Transitional Housing Services. $1,000,000 
140.33 	is appropriated in fiscal year 2013 to the 
140.34 	commissioner of human services from the 
140.35 	TANF fund for transitional housing services, 
141.1 	including the provision of up to four months 
141.2 	of rental assistance under Minnesota Statutes, 
141.3 	section 256E.33. This appropriation must be 
141.4 	used for homeless families with children with 
141.5 	incomes below 115 percent of the federal 
141.6 	poverty guidelines, and must be coordinated 
141.7 	with family stabilization services under 
141.8 	Minnesota Statutes, section 256J.575.
141.9 	Community Action Agencies. $250,000 
141.10 	is appropriated in fiscal year 2013 from the 
141.11 	TANF fund for grants to community action 
141.12 	agencies under Minnesota Statutes, section 
141.13 	256E.30. This appropriation must be used 
141.14 	to serve families with income below 200 
141.15 	percent of the federal poverty guidelines and 
141.16 	minor children in the household. This is a 
141.17 	onetime appropriation and is available until 
141.18 	expended.
141.19 	MFIP Mentoring Pilot Program. $150,000 
141.20 	is appropriated to the commissioner of 
141.21 	human services from the TANF fund in 
141.22 	fiscal year 2013 for the purpose of providing 
141.23 	grants to help five local communities to 
141.24 	train and support volunteers mentoring 
141.25 	families receiving MFIP. Each pilot program 
141.26 	may receive a grant of up to $30,000. 
141.27 	Organizations must apply for grant funds 
141.28 	according to the timelines and on the 
141.29 	forms prescribed by the commissioner. 
141.30 	Organizations receiving grant funding must 
141.31 	model their project on the circles of support 
141.32 	model. Projects must focus on reducing 
141.33 	parents' and their children's isolation and 
141.34 	supporting families in making connections 
141.35 	within their local communities.

142.1	(c) Basic Sliding Fee Child Care Grants
					
142.2 	TANF Transfer to Federal Child Care 
142.3 	and Development Fund. (a) In addition 
142.4 	to the amount provided in this section, the 
142.5 	commissioner shall transfer TANF funds to 
142.6 	basic sliding fee child care assistance under 
142.7 	Minnesota Statutes, section 119B.03:
142.8 	(1) fiscal year 2013, $436,000; and
142.9 	(2) fiscal year 2014 and ongoing, $1,135,000.
142.10 	(b) The commissioner shall authorize the 
142.11 	transfer of sufficient TANF funds to the 
142.12 	federal child care and development fund to 
142.13 	meet this appropriation and shall ensure that 
142.14 	all transferred funds are expended according 
142.15 	to federal child care and development fund 
142.16 	regulations.

142.17	(d) Disabilities Grants
					
142.18 	Living Skills Training for Persons 
142.19 	with Intractable Epilepsy. $65,000 is 
142.20 	appropriated in fiscal year 2013 from the 
142.21 	general fund to the commissioner of human 
142.22 	services for living skills training programs 
142.23 	for persons with intractable epilepsy 
142.24 	who need assistance in the transition to 
142.25 	independent living under Laws 1988, chapter 
142.26 	689, article 2, section 251. This is a onetime 
142.27 	appropriation and is available until expended.
142.28 	Self-advocacy Network for Persons with 
142.29 	Disabilities.
142.30 	(1) $95,000 is appropriated from the general 
142.31 	fund in fiscal year 2013 to the commissioner 
142.32 	of human services to establish and maintain 
142.33 	a statewide self-advocacy network for 
142.34 	persons with intellectual and developmental 
143.1 	disabilities. This is a onetime appropriation 
143.2 	and is available until expended.
143.3 	(2) The self-advocacy network must focus on 
143.4 	ensuring that persons with disabilities are:
143.5 	(i) informed of and educated about their legal 
143.6 	rights in the areas of education, employment, 
143.7 	housing, transportation, and voting; and
143.8 	(ii) educated and trained to self-advocate for 
143.9 	their rights under law.
143.10 	(3) Self-advocacy network activities under 
143.11 	this section include but are not limited to:
143.12 	(i) education and training, including 
143.13 	preemployment and workplace skills;
143.14 	(ii) establishment and maintenance of a 
143.15 	communication and information exchange 
143.16 	system for self-advocacy groups; and
143.17 	(iii) financial and technical assistance to 
143.18 	self-advocacy groups.
143.19 	Aliveness Project. $100,000 in fiscal year 
143.20 	2013 is for a grant to the Aliveness Project, 
143.21 	a statewide nonprofit, for providing the 
143.22 	health and wellness services it has provided 
143.23 	to individuals throughout Minnesota since 
143.24 	its inception in 1985. The activities and 
143.25 	proposed outcomes supported by this 
143.26 	onetime appropriation must further the 
143.27 	comprehensive plan of the Department of 
143.28 	Human Services, HIV/AIDS program. This 
143.29 	is a onetime appropriation and is available 
143.30 	until expended.

143.31	Sec. 4. COMMISSIONER OF HEALTH

143.32	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	423,000

144.1	Appropriations by Fund
	
144.2		2012
	2013
	
144.3	General
	-0-
	-0-

144.4
144.5	Subd. 2.Community and Family Health 
Promotions
 					
144.6 	Autism Study. $200,000 is for the 
144.7 	commissioner of health, in partnership with 
144.8 	the University of Minnesota, to conduct a 
144.9 	qualitative study focused on cultural and 
144.10 	resource-based aspects of autism spectrum 
144.11 	disorders (ASD) that are unique to the 
144.12 	Somali community. By February 15, 
144.13 	2014, the commissioner shall report the 
144.14 	findings of this study to the legislature. The 
144.15 	report must include recommendations as to 
144.16 	establishment of a population-based public 
144.17 	health surveillance system for ASD. This 
144.18 	appropriation is available until June 30, 2014.

144.19	Subd. 3.Policy Quality and Compliance

144.20	Appropriations by Fund
	
144.21	General
	-0-
	-0-
	
144.22 	Web Site Changes. $36,000 from the 
144.23 	general fund is for Web site changes required 
144.24 	in article 2, section 17. This is a onetime 
144.25 	appropriation and must be shared with the 
144.26 	Department of Human Services through an 
144.27 	interagency agreement.
144.28 	Management and Budget. $100,000 from 
144.29 	the general fund is for the commissioner to 
144.30 	transfer to the commissioner of management 
144.31 	and budget for the evaluation and report 
144.32 	required in article 2, section 17. This is a 
144.33 	onetime appropriation.
144.34 	For-Profit HMO Study. $79,000 is for 
144.35 	a study of for-profit health maintenance 
145.1 	organizations. This is onetime and available 
145.2 	until expended.
145.3 	Nursing Facility Moratorium Exceptions.
145.4 	(a) Beginning in fiscal year 2013, the 
145.5 	commissioner of health may approve 
145.6 	moratorium exception projects under 
145.7 	Minnesota Statutes, section 144A.073, for 
145.8 	which the full annualized  state share of 
145.9 	medical assistance costs does  not exceed 
145.10 	$1,500,000.
145.11 	(b) In fiscal year 2013, $8,000 is for 
145.12 	administrative costs related to review of 
145.13 	moratorium exception projects.

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

145.17 	Sec. 6. EFFECTIVE DATE.
 145.18 	The provisions in this article are effective July 1, 2012, unless a different effective 
145.19 	date is explicit.